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HomeMy WebLinkAboutSoutheast Alaska Electrical Intertie March 25, 2008/TBPA eeThomas Bay picawerAuthority_AEA _TYEE LAKE HYDROELECTRIC PROJECT - PO.BOX 1318 WRANGELL,ALASKA 99929 (907)874-3834 FAX (907)874-2581 To:All Governing Entities in Southeast AlaskaOtherInterestedParties From:John Jensen,Chair,Thomas Bay Power Authority fcDate:March 25,2008 Re:Southeast Alaska Electrical Intertie The Thomas Bay Power Authority (TBPA)is unanimous in their concern over the lack of a focused energy plan for Southeast Alaska. There is no plan in place that would tie our communities together with an electrical intertie,Fossil fuel prices are rising and there is currently no energy plan in place,the TBPA is requesting all Southeast Alaska communities to respond to a call to action. We would like to call all governing entities and other interested parties to the necessity of the immediate need for construction of an electrical energy grid for Southeast Alaska.WeaskforacollaborativeeffortofallpartiestocallontheStateofAlaska,the Federal Government,all Southeast Alaska communities and private enterprise to focus on this issue. Southeast Alaska is rich in potential energy sources,be it from hydroelectric sites,stream flow,tidal change,wind or geothermal.Until we develop an intertie grid system,our region will be unable to economically make our existing electrical distribution systemsmorereliable. The completion of Southeast Alaska Electrical Intertie would provide a conduit to transmit sale of surplus power to British Columbia and the Lower 48.Southeast Alaska could ultimately be an exporter of clean green energy.Sale of surplus power could be a source of financing for build-out of the Intertie to serve ALL communities of SoutheastAlaska. However,we must address the electrical energy needs for Alaska first!We must begin to put in place programs that will all but eliminate the use of fossil fuel for the generation of electricity.If our communities simply plod along and address their individual needs,dependence on fossil fuel will remain in place for generations.We must reach out andincludeeverycommunityandvillageinSoutheastAlaska. Several studies have been completed that address the feasibility and planning of a Southeast Alaska Intertie and other aspects of ene"gy development.These studies are identified and referenced at the end of this memorandum. Actionis called for.We believe it is necessary to-present a unified voice to our electedofficialsandcallfortheexpenditureofsomeofthesurplusoilrevenuestobegintheplanning,design and construction of the Southeast Alaska Electrical Intertie Grid System. The regional intertie would enable us to exchange a fossil fuel driven economy for analternativecleangreenenergydrivenecononty. To that end,andin order to provide regional over-sight,it's time to form a regional transmission organization that is specifically chartered and organized to plan,manage, market,operate and maintain a regional electrical grid.We suggest charter members of the governing board of this entity should consist of representatives of the Southeast Conference and others from the region who have experience and qualifications with the operation of an electric utility.The regional entity would contract with the Alaska Energy Authority to be the managing entity for accounting of revenues that may be received from the Alaska Energy Authority and other sources for planning,design and construction oftheintertie. Your community can help by adopting a resolution of a form adopted by the Thomas Bay Power Authority supporting these ideas that can be sent to our governor,state and federal legislators who represent Southeast Alaska;the sooner the better. Reference Documents: ¢Resolution of the Thomas Bay Power Authority ©Map of the Proposed Southeast Electrical Intertie e S.E.AK Conference Intertie System Plan,Report #97-01,Acres International Corp,January 1998 Comprehensive Renewable Energy Feasibility Study for Sealaska Corp.,Springtime'Co.LLC,December 2005 e AK-BC Intertie Feasibility Study S.E.Alaska,Hatch Acres Corporation,September 2007 _e SE.AK Conference Intertie Phase 1&2 Final Reports by D.Hittle and Associates., -December 2003 Thomasns Bay Power Aushority -P.0.Box«1318 -Wrangell,AAlaska 99929 plz (907)874-33834M4 fas(907)874.567 /TBPA |p,Thomas BayowerAuthority -TYEE LAKE HYDROELECTRIC PROJECT -P.O.BOX 1318 WRANGELL,ALASKA 99929 (907)874-3834 FAX (907)874-2581 THOMAS BAY POWER AUTHORITY RESOLUTION NO.2008-0325A WHEREAS,Southeast Alaska is the only place in the United States with a population its size that is not interconnected by an electrical intertie grid system;and WHEREAS,the lack of a regional electrical grid together with rising fuel oil cost has substantially increased the cost of heating homes and businesses and is thereby restraining the growth of commerce and economic development throughout the region; and WHEREAS,the communities of Southeast Alaska need reliable,cost effective,long- term sources of energy for the future in order to minimize environmental impact,stabilize electric rates,foster employment and increase economic development opportunities;and WHEREAS,it is vital that work continue on completing the region-wide goal of interconnecting all of Southeast Alaska with an electrical transmission grid system. NOW,THEREFORE,BE IT RESOLVED that the Thomas Bay Power Authority does hereby petition boroughs,cities,villages and electric utilities of Southeast Alaska to join with us in forming a regional transmission organization that is specifically chartered and organized to plan,manage,market,operate and maintain a regional electrical transmission grid system. BE IT FURTHER RESOLVED that the governor and State legislature are hereby petitioned to appropriate some of Alaska's surplus oil revenues to the Alaska Energy Authority to be a conduit for State funding to the regional transmission organization to begin the planning,design and construction of the Southeast Alaska Intertie System. DATED this 25th day of March 2008. THOMAS BAY POWER AUTHORITY John Jensen,Ch . ¥ Nd OU OISoNtodd qr a"penne NOUR MM Sh cnetiid om04: wamweatect bwrageseats br Jim We talked last Friday about projects down here in Southeast Alaska in terms of where they are and what is needed to get them construction ready. Petersburg/Kake:we are looking at completing the final feasibility study and to bring that project to being construction ready after this construction season.We need to work out the agreement between AEA,DOT and Southeast Conference so that the public knows that we are all in agreement and are working together on this project. Juneau/Hoonah:I talked with Eric Eriksen,P.E.of AEL&P about where they where at with pre-construction work and he said that they will have all the design and permitting completed by the end of this construction.They have been working with a Federal DOE grant of $950,000 which allowed them to move forward with the project.The project estimate for construction is $37million. Metlakatla/Ketchikan:This is a project that is very attractive because it's a small project that will have a lot of potential.There has only been a project study done on this project. We would need an estimated $1.5 million to do the project design and the permitting to get this construction ready. Reynolds Creek:This project has a $2 million designated approbation to complete the final design of a 5 megawatt hydro system and will be ready to construct.The problem that we are facing with this project is that the Federal Regulatory Commission has a dead line set for Haida to begin construction.I believe that date is October of this year.We are looking at $11.7 million dollars to complete construction of this project.Haida also needs to stage the long lead items,so as soon as they know what funding level they have to work with,they can begin that process. Thyar Creek:This project needs $3 million to complete design and permitting,hopefully we can get the money this year so that the project can be construction ready next construction season. IPEC:I have not been able to sit down with Jodi Mitchell yet,but I am going to Kake to attend IPEC's annual meeting this Friday. 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