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Home My WebLink AboutElfin Cove Energy Infrastructure Projects - Draft Concept Design Report Feb 10, 2006Alaska Energy and Engineering,Inc.Mailing Address -P.O.Box 111405Anchorage,AK 99511-1405 (907)349-0100349-8001 fax February 10,2006 BR (a 5 E i IEMr.David Lockard,P.E.FEB 1 0 2006 Project ManagerRuralEnergyGroup AIDEA/AEA Alaska Energy Authority . 813 West Northern Lights Blvd.eal Anchorage,AK 99503 Subject:Elfin Cove Energy Infrastructure Projects -DRAFT Concept Design Report Dear Mr.Lockard: Enclosed for your review please find two copies of the draft Concept Design Report for the above referenced project.The report represents a plan for diesel power plant renovation,power distribution and heat recovery upgrades,minor fuel system renovations and construction of a new hydroelectric facility in the community of Elfin Cove. Upon completion of your review,please provide us written comments or call us toscheduleameeting.We will then incorporate relevant comments,revise the report asrequired,and submit it to you in final form. Please review the information and call me to discuss the project at (907)349-0100. va Inc. Attachments:as noted Sincerely, Steven J. President DRAFT CONCEPT DESIGN REPORT AND CONSTRUCTION COST ESTIMATE FOR ENERGY INFRASTRUCTURE PROJECTS IN THE COMMUNITY OF: ELFIN COVE PREPARED FOR: STATE OF ALASKA ALASKA ENERGY AUTHORITY/ RURAL ENERGY GROUP PREPARED BY: Alaska Energy and Engineering,Inc.Mailing Address -P.O.Box 111405Anchorage,AK 99511-1405 (907)349-0100349-8001 FAX DRAFT FEBRUARY 10,2006 Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering EXECUTIVE SUMMARY This report has been prepared by Alaska Energy and Engineering,Inc.(AE&E)for the Alaska Energy Authority/Rural Energy Group (AEA/REG).The purpose of this study is to provide a concept design and construction cost estimate for the following potential energy infrastructure improvement projects for the community of Elfin Cove: e Diesel power plant renovation. e Minor upgrades to existing bulk fuel storage and handling facilities. e Generation heat recovery system upgrades. e Community power distribution improvements. e Hydroelectric generation facility and transmission cable. Participants in the project include the Community of Elfin Cove Nonprofit Corporation (Community Association)and the Elfin Cove Electric Utility (Electric Utility). A site investigation was performed by David Lockard of the Alaska EnergyAuthority/Rural Energy Group (AEA/REG)and John Dickerson of Alaska Energy & Engineering,Inc.(AE&E)on Wednesday April 13,2005.The purpose of the site visit was to.meet with local residents to identify and discuss potential energy infrastructure projects within the community as well as to gather reconnaissance level information for preparation of a Conceptual Design Report (CDR)for any identified projects. The existing power plant and electrical distribution system was constructed in the mid 1980's.The power plant is centrally located in the town site,co-located on a parcel with the community building.The power plant building will need to bemodifiedinordertomeetIBCfireseparationrequirementstootherbuildingsandpropertylines.The power generation and heat recovery equipment in is in poorconditionandinneedofreplacement.The proposed power plant renovation willincludethreenewgenerators(364kW total),programmable automatic parallelingswitchgear,remote radiators with variable speed control,a fire suppressionsystem,critical grade exhaust silencers,an automatic fill day tank,a heatexchangerforgenerationheatrecovery,and all required engine coolant pipingandventilationequipment. The existing community tank farm was constructed new in 2000 and is in excellent condition.There are some minor code-compliance issues that need to be addressed including security fencing,warning signs,and electrical systemrevisions.Proposed fuel distribution pipeline work includes new paint andsupportsontheexistingfueldockpipelinesaswellasanew2"welded steelpipelinetosupplythepowerplantautomaticfilldaytank. Proposed community heat recovery system upgrades include new heat recoveryequipmentforthecommunitybuildingandshopbuildinghydronicheating systems. Proposed community power distribution upgrades include one new residentialsecondaryservicetransformerfortwoplannednewhomes,upgrades to theharborelectricaldistributionandmeteringsystemaswellasaprepaidelectric meter for the community dry-dock boat grid. The proposed hydroelectric generation facility would be located approximately oneandonequartermilessoutheastofthecommunityofElfinCove.The hydroelectric facility would include:a diversion structure on Crooked Creek;an approximately 1,000 foot long diversion conduit from Crooked Creek to Jim's Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering Lake,an approximately 1,300 foot long penstock from Jim's Lake to tidewater;a hydro power house with turgo type turbine and programmable automaticparallelingswitchgearattidewater;an approximately 9,000 foot long on-groundtransmissionlinetotherenovateddieselpowerplant;fiber optic communicationcablebetweenthehydroelectricpowerhouseandthetownsitedieselpowerplant;and access trails to the power house and diversion structure. For scheduling and cost estimate purposes all power plant,tank farm,fuel pipeline,heat recovery and power distribution work is combined into a single "Power System Upgrades"project.The proposed project schedule calls for design and permitting to be completed by November 2006,for construction from February through April 2007,with the renovated power plant fully functional by May 2007. The proposed hydroelectric facility and transmission line scheduling and costestimateisincludedasthe"Hydroelectric Facility and Transmission Line"project. The proposed project schedule calls for design and permitting to be completed by August 2007,for construction from March through July 2008,with the hydroelectric facility fully functional by August 2008. Separate cost estimates have been prepared for the Power System Upgrade (including power plant,tank farm,fuel pipeline,power distribution and heat recovery upgrades)and the Crooked Creek/Jim's Lake Hydroelectric Project.The estimated total project cost including all design,supervision,inspection, permitting,and a 15%contingency for each component is: e $1,016,185 Power System Upgrades e $1,495,115 Crooked Creek/Jim's Lake Hydroelectric Project The total installed generation capacity of the renovated diesel power plant is 364kW.The unit cost of the Power Plant Upgrade is $2,792/kW which is below the Denali Commission benchmark cost range of $3,500 to $2,900 per installed kW for 201W to 400kW capacity power plants. It is assumed that the operation and maintenance costs of the hydroelectric plant will be comparable to that of the diesel generators.Therefore,the hydroelectric project cost of $1,495,115 needs to be compared to the primary benefit which is the avoided fuel cost.It is estimated that the hydroelectric generator would offset approximately 25,600 gallons of diesel fuel per year.Using the average fuel price paid by the electric utility in 2005 of $2.52/gallon this equates to an annual savings of $64,500. Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering INDEX EX@CuUtive SUMMALY.........cceceeecseeeeeeeeseneesseseeeesassseneaaaeaeseeeteeteceeeeseneeaegseneeeseeeeneaaa Page i Fa 6 [<)Gp Page iii Acronyms and Abbreviations.................ccccccssencceeeesessneeeeeecsessnceeeeeeeeeeenerennauaeenenes Page v 1.0 INtrOGUCTION «0.eee cee eeceecteeeeeceeeateeeeeeeeeeeeesesensesasessaaaaacacaeaneeaeasaeeeeeeeenereess Page 1 1.1 Program OVEIVICW ........cccccceeceeeeceesseeseneuseseesseussusenenaeseeaaaaaaaeeeenaeeeeeeetenees Page 1 1.2 Community DeSCIIPtiON 20.0...eee eeecenreeeeneneeeeeeeteeeeeeseneaaeaaeuaeseeeeeess Page 2 1.3 Site Investigation ............cece cece eeeeseeeeeecessseeecneeeeeeseeeeeeeeeeeeeneseeeteeeeeseeers Page 2 1.4 Code Analysis &Deficiencies 20.0...eeceseeneeeeceeeeeeeeeeeeeeeeeeesteeereneseees Page 3 2.0 Existing Facilities 0.0.0.0...Seana eececeeeseeeeecananeueeeasessuasaeaeeseeereeeeeeteseeseaeeaaeess Page 4 2.1 Power Plant...cece cecececeee eee cnseeeseeeeesesecaesesseueaesaaaneaaaaeesertenereeseeaaeegens Page 4 2.2 Power Distribution .........ce cceececeeeeeeeseeteeecoeseeeesereeeeeneeeesaeesaeetereteeesenens Page 5 2.3 Heat RECOVErY SYStOM 2.00.0...ce eeseceesteceeeeeeeerseeersessssceuscuscuseeeseeseseeaaaseeens Page 5 2.4 Fuel Storage 00...cece eecseeeeecseeeeeeseeeseeseeseessseneeeasenseseseeceuaeeanegeeuerseseesens Page 5 3.0 Community Power Demand...eee eeeeeeeeeeeeeeetereeeseeneeseseeseeeeeeaeeaeeneess Page 6 3.1 Estimated Future Load Growth 00.0.0...eee eeeeeeeeeeeeeeseeneeeeeeeeeeeseseeeeaenseees Page 6 3.2 Alternative Energy/Efficiency Improvements................:cccsssseecceeeseeeseeeees Page 7 4.0 Proposed Energy Infrastructure Project Descriptions ...........ee eeeseesseeeeeeeees Page 8 4.1 Power Plant Renovation.............ccccesccsssssesesessnesseneseeseeeseeeeeeseeeteeeetttereas Page 8 4.2 Power Distribution Upgrades ..............ccececceeccceeseeeeeceeeseecaeseecenasseeseeeeees Page 10 4.3 Heat Recovery System Upgrade ................cccccsseseeeccueesccesseeeenaeseceanees Page 10 4.4 Tank Farm Upgrade ..............cceesccccceeseecccceesseecceueseecccsauecsessaeeeseeaeeeeauns Page 11 4.5 Crooked Creek/Jim's Lake Hydroelectric Project...sscccssseneeeeeees Page 11 5.0 Site Selection &Control...eee eeeceeeeseseerereseeseeessstecsesereeseeeteeeeeesenseaea Page 14 5.1 Power Plant Site...cecccseeeceeceeeeeeeeeeeeeeeeeeeeeeeeeeeesesseesaseaasaeaesseses Page 14 5.2 IBC Fire Separation Requirement ..............:eeeeeseeeceesssnneaceereeresneanenees Page 14 5.3 Power Plant Fuel Pipeline Route...ce eesseceeeeeeeeeeseseeteeeeseesenees Page 15 5.4 Tank Farm Site...eeeeceeeeeseeeseseseseessesesessessesesseseeeeeceeereeerereeesenaaaes Page 15 5.5 Fuel Dock Site...ceccceesseereseeeceseseessessssasessecssseaeeeeeeeseseeteeeeeeeeenes Page 15 5.6 Harbor Site 2...cceceeesssssncnsnnceeneeeeeseeeesesssneeceeeceressscaaaaceaaeesseeeeeseneeees Page 15 5.7 Community Dry-Dock Grid Site .......aa deeeeeeseeeeeaeaeeseaaeeeaaaeeaeeseeeeeceseeesenees Page 15 5.8 Hydroelectric Project Site...eeeeeseeeceeesseeressesseaeeeeereessenaanaees Page 15 5.9 Hydroelectric Transmission Line Route .............ccccceeeeeeeeeeeseeseneeeeetesaes Page 16 5.10 Site Control ........ee eee eee eeeeeeeenseseeeeeeeeeeeeseeeaeaeseesesseaeeeseeeeesestesteecereees Page 16 6.0 Permitting and Spill RESPONSE..............ccceeseeenececcceceeecececeeetenecceseeseenaeneeesaees Page 17 6.1 Environmental ASSESSMENL.........cece ecceeeeeeeseeceeeceeeseeeseseeeneneneeneeeeeteees Page 17 Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering 6.2 Fire COG eee ecsceeccceseeeeeesessssssaeeeeteseeseceeesaeaeeeeeeseessessceeseneeeeens Page 17 6.3 Spill RESPONSE ou...cceseceeescceeceeesecseescescessecsesecseceeesessussesevsccevsesevseveaeeees Page 17 6.4 Hydroelectric Project Permitting ...........ee eeeeeeeeeeessseneeeeeeesseeseneeaees Page 17 7.0 COnstruction Plan 20.0...eeeecsesssessseseeseecessecseseueeeeecenersscaaaeeceeceerseseeaneeeeeeeeens Page 18 7.1 Local JOD SKINS oo.esc esetttereeseceeeeereeeeseseeeaeaeeeerecesereeeeseeseneeses Page 18 7.2 Local Equipment .0..0......eee eccccsesneeesseeeeeneeeeeeceeescneuececessseeseeeeseneeseeauenenss Page 18 7.3 Material SOUPCES oc ccececeeeeeeeeeeeeeeeeeceseteretseseeteteeesteseeeeesaeeeeaeaes Page 18 5 Obs 1e101-10[0 |=Ba eee Page 19 8.1 Power System Upgrades Schedule .........0...eee eeceeeeeeeeeeeeeeeeeeeneeeeenenenens Page 19 8.4 Hydroelectric Project SCHECUIE .......eee ceceseseeceesesseneeeeeereeneeeeeees Page 19 9.0 Cost Estimate 20.0...cceseeseeeceseaeenessseassecseeeereeteeeeereseseseaeausaaeaeeeeeereesenea Page 20 Concept Design DrawingS ................cececssseeceecereenssseeeeeeeeeeeneeeeesceeeeeeeetenseaneeeeass Appendix A Construction Cost Estimate ........eee eeeeeecceeneeseeeeeeseneeeaseeeeeseneeteeeseasaneeesees Appendix B Site Control DOCUMENHS 20.0.0...ee ec cee eeeseeeeeeeneeaaeeeerteeeensaaereeesesaaaaeeseeseeaeneres Appendix C Electrical Data ..0..........ecee eee cecsseeceeeneeeeereeeaneneeseeneneeaaaueeseeeeseeeaeeseeeesouaaneessiseaases Appendix D Description of Hydroelectric Project 0.0.0.0...eeecceeeecceceeeeseeeesseeeeeeeeeneeteees Appendix E Meeting Summary Letters 200.0...eeeeseeeecesseseeseesneecereeseeeseeseeseseeeueeaeaeereeeaeeess Appendix F Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering ADCCED ADEC AEA/REG AIDEA ACRONYMS AND ABBREVIATIONS AK Department of Commerce,Community and Econ.DevelopmentAlaskaDepartmentofEnvironmentalConservation Alaska Energy Authority/Rural Energy Group Alaska Industrial Development and Export AuthorityAmericanPetroleumInstitute Alaska Native Tribal Health Consortium Bulk Fuel Upgrade Conceptual Design Report U.S.Army Corps of Engineers Denali Commission (Alaska)Department of Transportation and Public FacilitiesU.S.Environmental Protection Agency Degrees Fahrenheit Gallons Per Minute Housing and Urban Development Indian Community Development Block Grant International Fire Code Mean Lower Low Water National Electric Code National Fire Prevention Association Non-frost susceptible Rural Power System Upgrade State Historic Preservation office Spill Prevention Control and Countermeasures United States Coast Guard United States Army Corps of Engineers United States Survey Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering 1.0 INTRODUCTION This report has been prepared by Alaska Energy and Engineering,Inc.(AE&E) for the Alaska Energy Authority /Rural Energy Group (AEA/REG).The purpose of this study is to provide a concept design and construction cost estimate for the following potential energy infrastructure improvement projects for the Community of Elfin Cove: e Diesel power plant renovation. e Minor upgrades to existing bulk fuel storage and handling facilities. e Generation heat recovery system upgrades. e Community power distribution improvements. e Hydroelectric generation facility and transmission cable. Participants in the project include the Community of Elfin Cove Nonprofit Corporation (Community Association)and the Elfin Cove Electric Utility (Electric Utility). 1.1.Program Overview The Alaska Energy Authority (AEA),Rural Energy Group is pursuing grant funds to upgrade rural bulk fuel tank farms and electric power systems.All project components are dependent on available funding.Following is a brief outline of the program: e Most of the funds are federal and provided through the Denali Commission (DC).Other federal funding may be available from HUD (ICDBG)and the Environmental Protection Agency (EPA).Additional funds may be available from the State of Alaska,USDA,and loan financing. e In order to receive grant funds,each community must demonstrate that the proposed facility will be sustainable by accepting a business plan.The business plan shall describe who will own the facility,and how it will be operated,maintained and replaced. e New energy projects are funded,designed,and constructed in three phases: Phase 1,Conceptual Design;Phase 2,Design Completion;and Phase 3, Construction. e During Phase 1,Conceptual Design,staff from AEA will visit a community, discuss the program,and work with residents and the local government to select sites for the new facilities. e At the completion of Phase 1 Conceptual Design,the community will be requested to review and approve the location,capacity,and basic configuration of the facilities as well as a draft business plan. e During Phase 2,Design Completion,the design for the new energy projects will be completed.An environmental assessment will be prepared and site control documented.A business plan will be prepared for signing. e Each community will be requested to provide "in kind”contributions as available. Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering e Project may include local hire and construction trade training programs, subject to Denali Commission funding. e lf the Denali Commission approves the business plan it will be circulated for signature and construction procurement will start. e Ineligible Projects:Funding is not available through AEA for buildings, propane facilities,fuel tank trucks or trailers,fuel to fill the tank farm, operation &maintenance costs,or residential tank upgrades.Loans for fuel tank trucks and trailers may be available through USDA. e Training Available:AEA has several training programs available for communities. 1.2 Community Description Elfin Cove is located on the northern shore of Chichagof Island,70 air miles west of Juneau and 33 air miles west of Hoonah.It lies at approximately 58.194° North Latitude and 136.343°West Longitude (Sec.25,T042S,ROS5E,Copper River Meridian.)The area encompasses 10.7 square miles of land and 0.1 square miles of water.Elfin Cove has a maritime climate with cool summers and mild winters.Summer temperatures range from 52 to 63;winters 26 to 39.The highest recorded temperature is 85,and the lowest recorded temperature is minus 10F.Total precipitation averages 102 inches a year,with 96 inches of snow.The population was estimated at 26 residents in 2004.Elfin Cove is a community association and is not a federally recognized native village.The community is located in the Sitka Recording District and the Chatham School District (CSD).The local school is no longer open and has been converted to a community building. 1.3 Site Investigation On Wednesday April 13,2005,David Lockard of the Alaska Energy Authority/Rural Energy Group (AEA/REG)and John Dickerson of Alaska Energy and Engineering (AE&E)traveled to Elfin Cove.The purpose of our site visit was to meet with local residents to identify and discuss potential energy infrastructure projects within the community as well as to gather reconnaissance level information. We arrived in Elfin Cove by float plane around noon.We proceeded directly to the community building where we met with power plant operator Jim Lewis and tank farm operator Jim Wild.After a tour of the power plant and fuel facilities a town meeting was held at 4:45 p.m.,which was attended by ten local residents, including Community Association Vice Chairperson Mary Jo Lord-Wild. Prior to the field investigations,available information was obtained and analyzed, including aerial photographs,community profile,survey plats,PCE data,Corps of Engineers wetlands and flood information,and other relevant data.During the initial field investigation,Elfin Cove Electric Utility electrical distribution system drawings and power generation operator logs were obtained.Additional information and input was obtained from the following individuals: Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering e Mr.Gordy Wrobel,Chairman,Community Association 239-2222 e Ms.Mary Jo Lord-Wild,Vice-Chairman,Community Association 239-2222 e Mr.Hap Leon,resident 239-2222 e Ms.Jane Button,Bookkeeper,Electric Utility 239-2218 e Mr.Jim Wild,Tank Farm Operator,Community Association 239-2222 e Mr.Jim Lewis,Power Plant Operator,Electric Utility 239-2222 e Mr.J.W.Bean,Professional Land Surveyor,Juneau 789-0590 e Mr.Brian Olsen,Delta Western Fuel,Juneau 586-8000 e Ms.Marcy Johnson,Channel Construction,Juneau 789-0200 e Mr.Doug Trucano,Trucano Construction,Juneau 586-2444 e Alaska Marine Lines,Seattle .(206)764-8346 1.4 Code Analysis &Deficiencies The following is a summary of existing power plant,electric distribution,and fuel system code analysis and deficiencies observed during the site investigations. Power Plant: e The existing power plant building does not meet IBC required fire separation distances from other buildings and property lines. e Antiquated /inefficient diesel gensets -expensive to maintain and operate. e Older automatic paralleling switchgear that does not respond properly to current community demand profile. Distribution System: e Inadequate secondary service capacity for area of proposed new residential construction. e Inadequate service capacity and number of pedestals at small boat harbor. Fuel Tank System: A new bulk fuel facility was constructed in Elfin Cove in 2000.The following is a summary of deficiencies observed at the new facility during the April 13,2005 site visit: e Missing Signage -Required signage missing,including emergency switch and DEC spill information signs. e Improper Fencing -Fencing does not completely enclose the tank farm and portions of the existing fencing are less than six feet high. e Improper Tank Labeling -Tanks are required to be labeled with product and capacity. e NEC Violations -Required conduit seal-offs at area classification zone boundaries are missing. e Improper Fill Indication-The dispensing tanks lack an audible alarm (whistle vent)or 85%mark on the liquid level gauge as required by Fire Code. e Improper Piping and Valves -Isolated sections of piping with no pressure relief. Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering The concept design for all energy infrastructure projects have been prepared to meet current code and regulatory requirements,which include: The 2003 Edition of the International Building Code (IBC). The 2003 Edition of the International Fire Code (IFC). The 2002 Edition of the National Electrical Code (NEC). The 2002 Edition of the National Electrical Safety Code (NESC). 40 CFR,Part 112.1-12,U.S.Environmental Protection Agency Spill Prevention Requirements e 33 CFR,Part 154.30 &154.1030,U.S.Coast Guard Spill Prevention Requirements 2.0 EXISTING FACILITIES The existing community energy infrastructure was evaluated to determine specific needs and deficiencies.The power plant,distribution system,heat recovery system and fuel storage were visually examined to determine suitability for re-use.The following paragraphs summarize findings for the community. 2.1 Power Plant The existing power plant building was constructed in the mid 1980's.It is located in the center of town,adjacent to the community building and near several lodges and residences.The building consists of an original 16'Wx26'L section with a newer 6'Wx14'L entry/storage addition.The back,both sides and a portion of the front wall of the original structure are constructed of pre-formed concrete panels.A portion of the front wall as well as the new storage room/entry are wood frame constructed.Roof construction is with wooden trusses and metal roofing.The building rests on a slab-on-grade foundation. The noise level in the area of the power plant has been an area of concern due to the close proximity of the community building,lodges and private residences. The pre-formed concrete walls are excellent for sound absorption but the existing exterior mounted exhaust silencers and open wall penetrations reduce the potential for overall building sound attenuation.The existing building ventilation system is inadequate,with only a single exhaust fan and no ventilation air intake ducting.The lack of ventilation makes it necessary to leave the door open in warm weather which increases the noise in the area. There are three generators in the existing power plant,one rated at 6OkW,one at 205kW and the third at 195kW (installed new summer 2005 by AEA/REG). The 205kW and 60kW units are high hour antiquated units near the end of their useful lives. Engine cooling is with two remote radiators located outside on the southern side of the power plant.All three generators are on a common cooling manifold with the other two radiators and a shell &tube heat exchanger that provides recovered heat to the nearby community building and shop.All of the existing engine cooling and heat recovery equipment appears to be original equipment and is near the end of its useful life. Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering 2.2 Power Distribution Power generation is at 480V 3-phase.The existing automatic paralleling switchgear includes a section for each of the three generators and a community feeder/station service section.The switchgear was originally provided by NC Equipment in the mid 1980's and is due for replacement.A pad-mount three- phase 150kVA (3@50kVA each)480V to 7.2/12.47kV community step-up transformer bank is located adjacent to the power plant. The distribution system is approximately twenty years old and is in good overall condition.It is sectionalized at the power plant step-up transformer bank with cable routed throughout the community in conduit underneath the boardwalks. There is only one three-phase distribution section,which runs to the community store (Lot 9).All other distribution is single phase.An approximately one mile long single phase extension delivers power around the perimeter of Elfin Cove. At the end of the developed townsite boardwalk area this extension converts to armored cable placed on top of the ground which continues around the cove.It then converts to a short section of overhead distribution on the western shore of Elfin Cove where it provides service to several lodges and residences. New housing construction is planned on the north side of town,an area currently served by only a single 10kVA secondary service transformer. The small boat harbor is under-served with power,with only six electric meters located on the main float to serve the entire harbor.This situation forces the use of long extension cords strung out on the finger floats to serve vessels located off the main float,with resulting safety issues and low voltage problems. There is a community small boat dry-dock grid in Elfin Cove where local vessels can go dry for bottom work and maintenance.There is currently no power source available in the grid area.A local resident has allowed:boat owners to run extension cords from his private service in the past but.is reluctant tocontinuethisarrangementinthefuture. 2.3.Heat Recovery System The community building and shop are currently served by generation heat recovery from the nearby power plant.The system consists of a shell and tube heat exchanger installed in the generator coolant system discharge piping in series with two remote radiators.There is no thermostatic valve in the heat recovery loop as is standard on AEA/REG generation heat recovery systems.A short run of copper supply and return piping runs approximately fifteen feet to the community building.Due to the limited time available during the site visit no inspection was made of the community building/shop heating system.Additional information regarding the existing buildings hydronic heating system will need to be gathered prior to project design to determine if heating or heat recovery system upgrades are warranted. 2.4 Fuel Storage The existing Community Association-owned tank farm is located on the shoreline adjacent to the fuel dock.It provides storage for virtually all of the diesel fuel and gasoline imported into Elfin Cove.The tank farm was constructed new in 5 Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering 2000,is in excellent condition and,except for a few minor issues observed during the site visit,appears to be a fully functional and code compliant facility. Some minor improvements are recommended as part of the proposed energy infrastructure upgrade projects. The tank farm contains four each 20,000 gallon horizontal double wall bulk storage tanks and three each horizontal double wall fire-rated dispensing tanks, two at 8,000 gallons and one at 5,000 gallons capacity.These double wail tanks now meet EPA secondary containment regulations due to the elimination of the single tank capacity and aggregate tank farm capacity size restrictions that were in effect at the time of the tank farm design and construction.Therefore the dike with liquid tight membrane liner is no longer required for tank farm secondary containment.| Three each 4"barge fill pipelines and three each 2"distribution pipelines run from the tank farm to the fuel dock.The fuel dock has a three product marine header and marine dispensing of unleaded gasoline,#1 diesel and #2 diesel. Marine dispensing is from submersible pumps on the three dispensing tanks. Fuel transfers from the bulk tanks to the dispensing tanks are also from submersible pumps.A wooden pump house located adjacent to the tank farm contains controls for the dispensing/bulk transfer pumps as well as a community fuel distribution system for pumping fuel to the power plant and various heating oil tanks within the community. The Elfin Cove Electric Utility purchases fuel from the Community Association tank farm.The fuel is pumped to the 600 gallon power plant day tank through above grade community fuel distribution piping routed beside the boardwalk. According to PCE data the Community Association purchases an average of approximately 30,000 gallons of diesel fuel per year for power production. 3.0 COMMUNITY POWER DEMAND Power consumption data was obtained from the Power Cost Equalization (PCE) program for 1999 through 2005,and from electric utility operator logs.Graphs are included in Appendix D.According to 1995 through 2005 PCE data the average annual load has ranged between 38.0kW and 45.4kW and annual fuel consumption averages around 30,000 gallons.According to the power plant operator logs the highest peak demand in 2004 was 144kW on July 21.The lowest peak demand in 2004 was 28kW on October 6. The 2005 peak demand,average demand and total kWh generated are lower than 2004 due to problems with the power plant's main generator.Several of the lodges were forced to self-generate during the peak summer demand period due to the inability of the power plant to carry the peak community load.An emergency repair project was funded by the AEA in order to replace the 205kW unit with a new 190kW unit but the installation was not completed until October, 2005,after the peak demand period had passed. 3.1 Estimated Future Load Growth It is important to evaluate the impact of planned infrastructure improvement projects on an existing power generation system.New construction and other 6 Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering community improvements can adversely impact the adequacy of existing facilities.Unlike most rural Alaska communities,peak electric loads in Elfin Cove occur between July and September.These summer peak loads are primarily associated with local lodges that provide sport fish guiding and other recreation activities as well as the influx of seasonal residents involved in commercial fishing., Due to recent reliability problems with the existing 205kW generator some of the local lodges have been self-generating at peak daily demand times,such as during meal preparations.The improved reliability of the renovated power plant will eliminate the need for this self-generation and will likely cause an increase in peak summer loads.In addition it is estimated that peak summer residential and other electric loads will increase at a rate of 2%each year.Based on these factors,it is estimated that the peak summer electric load may increase by approximately 40kW over the next 5 years to around 185 kW. Due to the magnitude of both the daily and annual load fluctuations,it is important to size the generation equipment to maximize fuel economy,yet provide sufficient redundancy so that any two gensets have the capacity to carry the projected peak electric load. 3.2.Alternative Energy /Efficiency Improvements An analysis of a potential hydroelectric project is included in Section 4.5. Careful sizing and selection of new generators with advanced technology in conjunction with the installation of new fully automatic paralleling switchgear and a continuous off-line engine preheat system will likely result in a slight increase in community power generation fuel efficiency. The proposed improvements to the generation heat recovery system described in Section 4.3 will maximize the efficiency of the system and the resulting fuel savings. The Community Association currently accepts used motor oil from the commercial fishing fleet as well as other producers within the community, including the power plant.The total quantity of used oil received/produced is currently approximately 1,000 gallons per year.Used oil accepted directly from private individuals is at times contaminated with other substances such as ethylene glycol,water or even gasoline.Since there is currently no means of testing for or separating out contaminants from the used oil,it is now all shipped off site for disposal at considerable cost to the community.A settling system or small centrifuge in conjunction with an end use facility,such as a solid waste incinerator or shop space heater,would reduce the amount of used oi!shipped out for disposal,conserve energy within the community,and potentially save money in the long term. The Alaska Energy Authority/Alaska Industrial Development and Export Authority published a draft Rural Alaska Energy Plan dated December 31,2002 as a follow-up report to the previously released Screening Report of Alaska Rural Energy Plan dated April 2001.The Screening Report evaluated a dozen alternative energy technologies other than diesel engine heat recovery.Only 7 Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering wind energy was identified as alternative energy technology warranting further evaluation in the draft Rural Alaska Energy Plan.According to the Wind Energy Resource Atlas of the United States the community of Elfin Cove is located within a class 3 wind regime and is not a viable candidate for a wind energy program using currently available technologies. There are no other known practical energy sources,such as solid fuel or natural gas,currently available at Elfin Cove.At this time,it appears that new,more efficient diesel generators,supplemental hydroelectric generation and possibly additional end-use conservation are the only viable energy reduction technologies available for Elfin Cove. 4.0 PROPOSED ENERGY INFRASTRUCTURE PROJECT DESCRIPTIONS The following proposed facility descriptions are separated into five sections: Section 4.1,"Power Plant Renovation",describes proposed upgrades to the existing Electric Utility power plant;Section 4.2,"Distribution Upgrades", describes proposed upgrades to the existing community electrical distribution system;Section 4.3,"Heat Recovery Upgrades",describes proposed upgrades to community building/shop hydronic heating systems;Section 4.4,"Tank Farm Upgrades",describes proposed minor upgrades to the Community Association tank farm;and Section 4.5 "Hydroelectric Project"describes the proposed Crooked Creek/Jim's Lake Hydroelectric project and transmission cable. 4.1 Power Plant Renovation The power plant is located in the heart of the community,only ten feet from a lodge,less than fifteen feet from the community building and very close to several residences.Due to the proximity of the power plant to these public and private facilities,the Community Association has requested that the upgrade design specifically address the areas of fire safety,noise control and air quality: e Fire Safety -As mentioned previously,the existing power plant building does not meet IBC fire separation requirements.Preliminary discussions with the Deputy State Fire Marshall have resulted in a building renovation plan for correcting the situation.The final design will be reviewed by the State Fire Marshall's office for compliance with all current code and _regulatory requirements.The renovated power plant will also contain an automatic fire alarm and water mist fire suppression system.This will be an improvement over the existing facility since there is currently no fire suppression. e Noise Control -The existing critical grade silencers will be replaced with interior mounted hospital grade silencers.The hospital grade silencers provide maximum noise reduction at the exhaust outlet.Placing all of the silencer shrouds inside the concrete building structure will maximize resonant sound absorption.All three exterior exhaust stacks will be routed up to a height of approximately 20'above grade.Sound attenuation will be provided at all building penetrations and combustion/ventilation air openings,with all openings located to minimize the noise impact on nearby buildings. Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering e Air Quality -The existing generators are not EPA certified for low emissions. The proposed new generators will be at least EPA Tier |certified and the new marine jacketed (64kW)generator will be EPA Tier II certified.These certifications are not required for small power plant installations like Elfin Cove but will guarantee that the new gensets meet Federal emissions standards.Due to advances in engine technology these new EPA certified gensets will be more efficient and will produce lower emissions than the existing units.Raising the exhaust stacks,necking down the stack at the tip to increase velocity and terminating vertically will also allow for better dispersion of the exhaust plume and decrease the impact of emissions near the power plant.These improvements,in addition to the new automatic paralleling switchgear and improved power plant ventilation,will all have a positive effect of reducing emissions.Proper maintenance of the generators will be necessary to ensure long term clean operation of the engines. It is proposed that all three existing generators be replaced with new,cleaner and more fuel efficient units.One generator should be sized to handle the entire community load during peak load periods.Another generator should be sized to provide efficient generation during low (winter)loads while maximizing generation heat recovery.The third generator should be sized to efficiently handle intermediate loads and to combine with the small generator to provide peak capacity generation in case the main unit is offline for maintenance or repairs.Therefore it is proposed that one each 190kW (summer peak),one each 110kW (intermediate load),and one each 64kW (winter load)prime rated generators be installed,for a total installed capacity of 364kW.The proposed 64kW (winter load)genset will be the prime genset for approximately eight months out of the year.This unit will be powered by a marine jacketed (water cooled exhaust manifold)engine to provide for additional generation heat recovery.The marine jacket will also significantly reduce the noise level of this genset. The following proposed upgrades are intended to modernize the existing IPEC power plant,to bring it into compliance with IBC fire separation requirements, and to improve the overall fuel efficiency,reliability,fire prevention/protection, noise control,air quality and operations at the facility: e Renovate building to meet IBC fire separation requirements. e Install fire suppression and alarm systems. e Replace all three existing generators,utilizing marine jacketed unit for winter loads for improved generation heat recovery and quieter operation. e Replace existing switchgear and relays with new programmable automatic paralleling switchgear with hydroelectric intertie expansion capabilities. e Provide for continuous preheat of off-line generators to allow for immediate (less than thirty seconds)generator switching during times of sudden sharp increases in community demand. e Replace existing exhaust silencers with new interior mounted hospital grade silencers on all three generators. Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering 4.2 Route new exhaust stacks higher and terminate vertically for improved exhaust dispersal and reduced noise. Provide noise attenuation at all building penetrations. Install adequate ventilation with sound-insulated air intake and exhaust fan ducting. Replace existing engine coolant and generation heat systems with new system including thermostatic valve and brazed plate heat exchanger for improved efficiency. Replace existing radiators with new radiators and variable speed motor controls. Install new 100 gallon automatic fill day tank in power plant with redundant overfill protection. Install new drop tubes on #1 &#2 diesel dispensing tanks.Install new filter, pump,and electric actuated ball valve at tank farm pump house.Install dedicated welded steel supply pipeline from tank farm to new day tank. Power Distribution Upgrades Proposed community power distribution upgrades include: e 4.3 New pad-mount 10kVA secondary service transformer for planned new residential construction on north end of town. New secondary service and prepaid service meter for community small boat dry dock grid. Replace the existing harbor meters with eight dual service (16 total plugs) 30A 120V single-phase metered marina-style pedestals spaced evenly along the small boat harbor floats. . New dedicated single phase feeder and 20kVA pad-mount step down transformer for 120V service to small boat harbor (assumes 70%feeder loading and 0.40 demand factor for harbor). Heat Recovery System Upgrades Generation heat recovery from the renovated power plant has the potential to save approximately 2,800 gallons of fuel use annually in Elfin Cove.The existing generation heat recovery and delivery equipment is approximately twenty years old and is due for replacement.The following improvements will be included in the final upgrade design: Replace all heat recovery copper tubing with welded steel arctic pipe. Install new heat exchanger,pump,and instrumentation in the power plant. Install a recovered heat BTU meter in the power plant. Install valves,equipment,and instrumentation as required in the community building and shop heating systems. Install alarms for loss of flow and loss of pressure,and no load/backfeed condition with annunciation in the power plant switchgear. 10 Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering 4.4 Tank Farm Upgrades The following minor upgrades are proposed for the Elfin Cove Community Association tank farm: e Install missing required signage,including emergency shut down switch sign and DEC spill information signs. e Provide tank labels with required product and capacity information. e Install 6'tall chain link fence with a 1'high barbed wire top around entire tank farm perimeter. e Install NEC required conduit seal-offs at area classification zone boundaries within tank farm. e Install pressure/vacuum whistle vents to provide audible overfill alarm on tanks. e Provide 85%mark on all tank liquid level gauges. e Install pressure relief valves on isolated piping sections at community fuel distribution pump house. e Touch-up paint on existing fuel dock pipelines and provide new supports with isolation cushions to protect pipe coating. 4.5 Crooked Creek/Jim's Lake Hydroelectric Project In April,1984 the Alaska Power Authority (APA)published a study entitled "Supplement to the Elfin Cove Reconnaissance Study"which analyzed a proposed 80kW hydroelectric generation facility to be located on Port Althorp approximately one mile south of Elfin Cove.At the time the report was written there was no community power generation or distribution in Elfin Cove.The project as described in the report consists of the following components: e A three to five foot high diversion dam on Crooked Creek constructed of local materials (wood,rock and earth). e A 1,650 foot long diversion conduit from Crooked Creek to.Jim's Lake constructed of 18"diameter corrugated aluminum pipe. e A Sluice gate and trash rack at the upper end of the Crooked Creek diversion conduit. e An intake siphon,trash screen and log weir at the Jim's Lake outlet. e A 2,400 foot long 12"diameter HDPE pipe penstock from the Jim's Lake outlet to the powerhouse,including intake valve,vacuum relief valve and pressure relief valve. e A single 80kW capacity pelton-wheel turbine with automatic governor and single-phase generator along with required switchgear. e A 10'x12'powerhouse shed,concrete pad and corrugated aluminum pipe tailrace. e A 6,700 foot long single phase transmission line of corflo-encased 15kV #2 XLP cable laid on top of the ground with splice cabinets at 500 foot intervals. 11 Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering e Assingle-phase electric distribution system throughout the community. All available data regarding the potential hydroelectric project,including the mentioned report,was forwarded to hydroelectric generation specialist Bob Butera,P.E.at HDR,Inc.Mr.Butera was tasked with analyzing the report along with available stream data and providing a cursory opinion on the feasibility, constructability and reliability of the proposed project.He was also tasked with providing an updated and inflation adjusted cursory budgetary cost estimate for the hydroelectric project.The HDR,Inc.analysis and revised cost estimate are based on the original proposed stand-alone hydroelectric generation project as described in the 1984 APA report and are included in Appendix E of this report. Following are proposed changes to the scope of the original APA Crooked Creek/Jim's Lake hydroelectric project due to changes in technology,existing community infrastructure and increased power demand in Elfin Cove since 1984: e Community Distribution -At the time the 1984 report was written there was no community diesel power plant or distribution system in Elfin Cove. Therefore the proposed APA project included all required community distribution equipment.The community now has a diesel power plant and electrical distribution system so the distribution component of the original APA project has been removed from the revised project plan. e Site Access -The APA project does not provide for skiff access at the powerhouse site nor does it provide for permanent trails for ease of access to the penstock intake at Jim's Lake or the Crooked Creek diversion structure. Access to these sites will be by required on a regular basis for inspection and maintenance operations.Therefore an allowance for construction of a small floating dock at the powerhouse and access foot trails to the entire hydroelectric infrastructure has been included in the revised cost estimate. e Hydroelectric Powerhouse -The APA project calls for a site-constructed 10'x12'wood frame building with slab on grade foundation.In order to minimize required site work another option may be to import a prefabricated modular powerhouse.The module could then be placed directly onto a piling foundation at tidewater by a barge-mounted crane. e Hydroelectric Turbine Automatic Governor -The proposed APA project called for an "automatic governor”on the hydroelectric turbine but did not include an allowance for installation of the required level sensing equipment at the reservoir or turbine control interface to the powerhouse.The revised cost estimate includes an allowance for a reservoir head probe and communication wires in conduit to the powerhouse as well as a solid state automatic turbine governor. e Diesel-Hydroelectric Hybrid System Communication &Controls -The original APA proposal was for a stand-alone single phase hydroelectric generation and distribution system and therefore did not require a scheme for integration with an existing diesel plant and three-phase distribution system. The new project will require a remote control/data communication scheme to allow the new hydroelectric powerhouse and the existing diesel power plant 12 Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering to operate as a hybrid paralleling system in order to get maximum benefit from the available hydro resources without jeopardizing the electrical power supply.Communication between the hydroelectric and diesel plants will be through 12-fiber armored fiber optic cable run along side the transmission line. e Switchgear &Step-up/Step-down transformers -Generation at the hydroelectric and diesel plants will be at 480V three-phase.In order to limit conductor size and line reactance the transmission voltage will be stepped up to 2.4/4.1kV at the hydro end for transmission.The voltage will be stepped back down to 480V at the diesel plant for connection directly to the new 480V diesel plant switchgear and integration into the existing community distribution system. e Transmission Line -The proposed APA project called for a 6,700 foot long 7.2kV single-phase transmission line of corflo-encased 15kV #2 XLP cable laid on top of the ground from the hydroelectric powerhouse to the south end of Elfin Cove.The revised project plan is for a 9,000 foot long 2.4/4.1kV three-phase transmission line of 5kV #2 CLX armored cable from the hydroelectric powerhouse to the diesel power plant.The cable will be shallow buried in hand-dug trenches where possible and run on top of ground where not possible.The final approximate 1,000 feet will be routed with the existing community boardwalks. e Turbine -The original APA proposal was for an 80kW pelton wheel style turbine.Due to advances in technology since 1984 it appears that a turgo style turbine with PLC controller is now a more cost effective and efficient choice for the flow available at the proposed hydroelectric facility.A single nozzle Turgo unit with a rated output of 107kKW at 1200 RPM with a direct coupled 100kW generator has been proposed for the revised project.The Hydroelectric Project cost estimate provided in Appendix B incorporates the'above proposed changes along with the inflation-adjusted cost estimate of the unchanged portions of the original APA project as provided by HDR,Inc. A step function approximation of availability versus demand was used to estimate potential fuel savings based on 2004 average electric loads and the following hydroelectric water flow assumptions: e Three summer high demand and mean flow months @ 65kW average hydroelectric production e One summer drought month @ 20kW average hydroelectric production Seven winter low demand and mean flow months @ 30kW average hydroelectric utilization e One winter freeze-down month @ 13kW average hydroelectric production This corresponds to a total of 320,000 kWh of hydro-electric production per year. Assuming a diesel generation efficiency of 12.5 kWh/gallon,the annual fuel savings is estimated to be approximately 25,600 gallons. 13 February 10,2006 Alaska Energy and Engineering Elfin Cove Energy Infrastructure Projects DRAFT Concept Design Report 5.0 SITE SELECTION &CONTROL Work for this project will be performed in seven general areas:(1)The "Power Plant Site”;(2)The "Power Plant Fuel Pipeline Route”;(3)The "Tank Farm Site"; (4)"The Fuel Dock Site";(5)The Harbor Site;(6)The Community Dry-Dock Grid Site;(7)The "Hydroelectric Project Site";and (8)The "Hydroelectric Transmission Cable Route”.There are no known flood hazards at any of these locations. 5.1 Power Plant Site The existing power plant is located on Lot 13A,U.S.Survey No.2946 as shown in Appendix A,Sheet M2.The community building (ex-school building)is also located on this lot,approximately fourteen feet from the power plant.The corner of the power plant building entry/storage room is over the property line shared with the adjacent boardwalk easement and is also less than ten feet from the Eagle Charters Lodge building directly across the boardwalk. 5.2.IBC Fire Separation Requirements The IBC requires minimum separations from buildings to a property line or the centerline of a public easement (fire separation distance)depending on occupancy,type of building construction and fire resistance rating of exterior walls.The power plant falls within IBC occupancy group F-1 (Factory Industrial, Moderate Hazard),which includes electric light plants and power houses.The adjacent community building is currently used for public meetings,which falls under occupancy group A-3 (Community Halls).The adjacent lodge falls under occupancy group R-1 (Boarding Houses &Hotels).For the purposes of this study it is assumed that all three buildings are non-fire rated construction throughout with no automatic sprinkler systems,which classifies them as Type V-B construction per the IBC.The following table summarizes the IBC fire- resistance rating and fire separation distance requirements for the previously mentioned occupancy groups of construction Type V-B only: FIRE-RESISTENCE RATING REQUIREMENTS (TYPE V-B CONSTRUCTION) OCCUPANCY |OCCUPANCY |OCCUPANCY FIRE SEPARATION GROUP F-1 GROUP A-3 GROUP R-1 DISTANCE (POWER (COMMUNITY (LODGE)PLANT)BUILDING) less than 5'2hr 2hr 2hr greater than or equal to 5' and less than 10'thr thr thr greater than or equal to 10' and less than 30'Ohr Ohr Ohr The existing power plant entry/storage room encroaches into the public easement and is less than 5'-O"from the easement centerline.The IBC would 14 Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering require the walls and door in this area to be 2hr rated assemblies,which would be impractical to meet.Therefore it is proposed to remove the existing entry/storage room and relocate it so that it does not encroach into the public easement and is at least 5'-0"from the easement centerline,which would require only a thr rated door and wall assembly. The proposed fire separation boundary as shown on Sheet M4 would be less than 10°from the walls of the existing lodge and community buildings.According to the State Fire Marshall's Office,this would not immediately impact these buildings.However,any future major renovations to the affected portions of these buildings would require a plan review and could require existing structural assemblies to be improved to a thr or 2hr rating at the time of the future renovation. 5.3.Power Plant Fuel Pipeline Route The proposed new day tank fill pipeline will be routed within Lots 3 and 13B, USS 2946 alongside the existing boardwalks from the tank farm to the power plant.See Appendix A,Sheet M2. 5.4 Tank Farm Site The existing Community Association tank farm is located within Lot 2,USS 2946. All tank farm upgrades will occur within the existing tank farm property boundary. See Appendix A,Sheet M2. 5.5 Fuel Dock Site The fuel dock and associated fill and distribution pipelines are located within Alaska Tidelands Survey No.443 (ATS 443).All fuel dock pipeline upgrades will occur within the existing tidelands survey property boundary. 5.6 Harbor Site The small boat harbor is located within ATS 1473,with the access ramp located within Lot 1 of ATS 442.The electrical service upgrades on the harbor floats will occur within these existing tideland survey boundaries.See Appendix A,Sheet M2. 5.7 Community Dry-Dock Grid Site The community dry dock grid is located within ATS 1473.The electrical service upgrades at the dry-dock grid will occur within the existing tideland survey boundary and adjacent upland property.See Appendix A,Sheet M2. 5.8 Hydroelectric Project Site If constructed,the hydroelectric project will be located approximately one mile south of Elfin Cove.The project area encompasses a portion of the Crooked Creek and Jim's Lake drainages and extends to the powerhouse at the Port Althorp shoreline.The proposed diversion dam and a portion of the diversion conduit are located within Section 31,Township 42 South,Range 56 East.The diversion conduit termination and penstock inlet at Jim's Lake are within Section 6,Township 43 South,Range 56 East.The penstock will also cross Section 31, 15 Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering Township 43 South,Range 55 East and terminate at the powerhouse within Section 36,Township 42 South,Range 55 East.See Appendix A,Sheet M1. 5.9 Hydroelectric Transmission Cable Route The proposed transmission cable will be routed cross country within Section 36, Township 42 South,Range 55 East from the powerhouse to the southern boundary of the Elfin Cove community.The cable will then follow the existing single phase at-grade distribution line north across private parcels to the boardwalk,where it will be supported below the boardwalk in conduit approximately 1000'to the power plant.See Appendix A,Sheets M1 and M2. 5.10 Site Control A Certificate to Plat was issued by Southeastern Title Agency effectiveDecember8,2005.A copy of the Plat Certificate is included in Appendix C.Additional independent site control research was conducted to verify title toexistingrightsofwaysandadjacentlands,which were not identified in the Certificate to Plat. The existing power plant,located on Lot 13A,USS 2946,is vested in the Community of Elfin Cove. The new power plant fuel pipeline is located on Lots 3 and 13B of USS 2946.Lot 13B is owned by the State of Alaska.The State of Alaska Department ofTransportationissuedaDeclarationofPublicRightofWay,July 2,1999,whichincludesLot3.A copy of the Declaration was not included in the Cert to Plat.A copy of the Declaration has been requested from the recorders office. The existing tank farm site,located on Lot 2,USS 2496,is vested in the Community of Elfin Cove. The fuel dock site,located within Alaska Tidelands Survey No.443,is vested in the Community of Elfin Cove.There is a 1978 reference to a lease of dock facilities with Pelican Cold Storage Company;however,there is no recorded document for this lease. The harbor site is located within ATS 1473 and Lot 1 of ATS 442.Lot 1 of ATS 442 is vested in the Community of Elfin Cove.ATS 1473 is vested in the State of Alaska. The community dry dock grid,located within ATS 1473,is vested in the State of Alaska. The hydroelectric project site is located within the Tongass National Forestboundary,which is owned by the United States of America.Should thehydroelectricprojectprogresstofinaldesign,permits and easements/rights-of-ways will need to be secured prior to construction. The cross country portion of the hydroelectric transmission cable traverses Section 36,Township 42 South,Range 55 East,which is owned by the United States of America.The portion of the cable within the community crosses several privately held parcels.Easements and/or rights-of-ways will need to be secured for the transmission cable route. 16 Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering 6.0 PERMITTING AND SPILL RESPONSE The renovated power plant and existing tank farm are subject to regulations of both State and Federal agencies including the Alaska Coastal Management Program,the Alaska Department of Environmental Conservation (ADEC),the Division of Fire Prevention,and the U.S.Environmental Protection Agency and U.S.Coast Guard. 6.1 Environmental Assessment An Environmental Assessment (EA)will be completed prior to construction of the proposed project.An EA is required for all projects that are federally funded or require a federal permit (such as a Corps of Engineers Wetlands Permit).The EA determines whether there is a significant impact to the environment caused by the project.As part of the EA,a Coastal Zone Management Project Questionnaire will be completed and submitted to the Alaska Coastal Management Program.The Coastal Zone Management Project Questionnaire helps to identify state or federal permits that may be required. 6.2 Fire Code A Plan Review permit from the State Fire Marshal is required for the fuel and power plant portions of the project.Final stamped design drawings will be submitted to the Fire Marshal for review prior to construction.Plans will be reviewed for conformance with the International Fire Code and related codes including the International Building Code and the National Electrical Code.The review process can take anywhere between 3 weeks to 6 months. 6.3 Spill Response Because the existing Community Association tank farm has oil storage tanks in excess of 1,320 gallons and receives delivery by marine vessel,it is subject to U.S.Environmental Protection Agency and U.S.Coast Guard regulations.If required,the existing Coast Guard and EPA plans will be reviewed and updated and additional spill response gear will be purchased as part of this project. 6.4 Hydroelectric Project Permitting In addition to the EA requirements listed above,the hydroelectric portion of this project will require the following separate permits/review process if built: e Alaska Department of Natural Resources o Water Rights Permit o Fish Habitat Permit o Coastal Zone Management Consistency Review e Federal Energy Regulatory Commission (FERC)license or waiver e Site control permits and/or easements for access to the site and for electric transmission cable right of way. 17 Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering 7.0 CONSTRUCTION PLAN The AEA/REG has a history of administering similar projects on a "modified" force-account basis.Force-account construction involves the owner or grantee acting as the employer and utilizing primarily local labor.This method tends to achieve a higher percentage of local hire and is strongly supported by many communities and funding agencies.The highly technical nature of power generation and distribution projects requires a limited number of workers with specific experience and expertise to be brought in for the project when not available locally.All work must be supervised and managed by a superintendent with extensive experience in the construction of rural power generation and distribution systems.All specialty work,such as pipe welding and electrical installation must be performed by skilled craftsmen with appropriate certifications.An experienced construction manager will be required to recruit the necessary skilled labor,coordinate the construction team,and oversee procurement and project logistics.The design engineer will provide quality control through communication with the construction manager and periodic on- site inspections. The nature of the projects identified will allow most of the projects to be constructed simultaneously and independently from the other.The power plant, distribution and tank farm upgrades as well as the hydroelectric project are separate and will not necessarily need to be constructed using the same construction management teams. There is no direct shipping or ferry service into Elfin Cove.All project construction materials and equipment will be staged in Juneau and delivered to Elfin Cove using a local barge or landing craft service. 7.1 -Local Job Skills As previously noted,the number of year round residences in Elfin Cove was only 26 as of the 2004 census.The population increases dramatically in the summer with the influx of commercial fishermen,lodge owners,lodge employees and tourists.Few,if any,of these summer residents would be available to work on the energy infrastructure upgrade projects.Every effort should be made to hire locally but it should be assumed that many of the project supervisors and workers will need to be hired outside of the community. 7.2 Local Equipment There is no locally available heavy equipment in Elfin Cove. 7.3.Material Sources This project has minor site development so very little fill material will be required. There is no borrow source for gravel within the community. 18 Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering 8.0 SCHEDULE The proposed project schedule is separated into two sections:Section 8.1, "Power System Upgrades Schedule",and Section 8.2,"Hydroelectric Project Schedule”.The "Power System Upgrades"project includes all power plant,tank farm,fuel pipeline,heat recovery and power distribution work.The schedules have been set to take advantage of the best seasonal weather for most work.All schedules are contingent on timely approval of the plan by all project participants and the Denali Commission. 8.1 Power System Upgrades Schedule It will be most efficient to manage the power plant,heat recovery system,tank farm and distribution system upgrade work as one project due to their interdependence,the similarity of work skills required,and their proximity to each other.There is no site development work associated with these projects and a good portion of the work is not weather dependent.Therefore an off-season schedule was developed to take advantage of better construction personnel availability and to have the least impact on the local summer tourism and fishing economies.It is assumed that funding could be available in time for construction in early 2007.The schedule could be adjusted as required to accommodate funding availability. e Feb-Nov 2006:Design,permitting,and site control. e Oct-Dec 2006:Order generators,switchgear,radiators,materials,etc.. e Feb 2007:Mobilization and temporary power installation. e Feb-April 2007:Project construction. e May 2007:Project completion,power plant commissioning &operator training. e June 2007:O&M manuals and project close out. 8.2.Hydroelectric Project Schedule Permitting and design for the hydroelectric project would not likely be completed in time for summer 2007 construction due to the long expected time frame for State and Federal permit approval.Therefore,the following schedule has been developed on the basis of performing the majority of the work for the hydroelectric project during early spring through summer 2008.This schedule is contingent on timely approval of the plan by the Elfin Cove Community Association and Denali Commission as well as on funding availability. e Feb 2006-Aug 2007:Design,permitting,and site control. e Sep 2007:Order turbine,switchgear,building materials,etc.. e March 2008:Project mobilization,startup. e March-July 2008:Project construction. e August 2008:Project completion,commissioning &operator training. e Sep 2008:O&M manuals and project close out. 19 Elfin Cove Energy Infrastructure Projects February 10,2006 DRAFT Concept Design Report Alaska Energy and Engineering 9.0 COST ESTIMATE The construction cost estimates have been developed based on a "modified" force-account approach utilizing a combination of local labor,certified craftsmen, and specialty sub-contractors under the direction of an experienced construction manager.Labor rates are based on Title 36 equivalent wages for certified specialty labor and prevailing local force-account wage rates for general labor and equipment operation. Detailed cost estimates are included in Appendix B.Separate estimates have been prepared for the Power System Upgrade (including power plant,tank farm, fuel pipeline,power distribution and heat recovery upgrades)and the Crooked Creek/Jim's Lake Hydroelectric Project.The estimated total project cost including all design,supervision,inspection,permitting,and a 15%contingency for each component is: e $1,016,185 Power System Upgrades e $1,495,115 Crooked Creek/Jim's Lake Hydroelectric Project The total installed generation capacity of the renovated diesel power plant is 364kW.The unit cost of the Power Plant Upgrade is $2,792/kW which is below the Denali Commission benchmark cost range of $3,500 to $2,900 per installed kW for 201W to 400kW capacity power plants. It is assumed that the operation and maintenance costs of the hydroelectric plant will be comparable to that of the diesel generators.Therefore,the hydroelectric project cost of $1,495,115 needs to be compared to the primary benefit which is the avoided fuel cost.It is estimated that the hydroelectric generator would offset approximately 25,600 gallons of diesel fuel per year.Using the average fuel price paid by the electric utility in 2005 of $2.52/gallon this equates to an annual savings of $64,500. 20 APPENDIX A CONCEPT DESIGN DRAWINGS |TOWNSHIP 42S wiei}Wie |w/o Lid;Lid Ol1o Z/2zSEESHEETM2=|FOR ALL ENERGY @>INFRASTRUCTURE | UPGRADE WORK AREA AINTOWNSITE< TOWNSHIP 43S --_-HYDROELECTRIC TRANSMISSION CABLE ROUTE POWERHOUSE DIVERSION 'DAM PENSTOCK HYDROELECTRIC PROJECT SITE DIVERSION CONDUIT 1°=1/4mi (APPROXIMATE) rue ELFIN COVE =sass 1/4 Department of CommunityandEconomic DevelopmentENERGYINFRASTRUCTUREPROJECTSDESAEDBFoe:2/10/08 te,oe AIDEA/AEArrMiser|"yA al Gor Soe,JBALASKAOVERALLPROJECTSITEPLANFirn-corn-Mi M415 ai yet Nora nae Fes AvhASISA FUEL /, DOCK ATS 3 SITE "le © . . EXISTING 3” -es >)BARGE FILL AND wW>©2”DESPENSING @_-"PIPELINES TO RECEIVE MINOR \ UPGRADES (SIX PIPELINES TOTAL)--NEW TANK FARM SITE BUNT-EXISTING TANK O FUELFARMTORECEIVEPIPELINEMINORUPGRADES ® D- SITE HARBOR ELFIN\,cove NEW SECONDARY SERVICE TRANSFORMER FOR PLANNED NEW RESIDENCES POWER PLANT SITE - EXISTING POWER PLANT .TO BE RENOVATED,SEE 'SHEETS M3,M4 &M5 N HEAT RECOVERY SYSTEM UPGRADES AT \ hy A) Y \ Hi,AS Hy,\ ATS 1473 YY"\-TRATA ff {4 \\ HALL &SHOP ©)1 COMMUNITY fe ,\XN ©7 HYDROELECTRTRANSMISSION CABLE ROUTE USS 2947 'e \ \\NAS.1473 nCTBWw UPGRADED ' DISTRIBUTION AND SERVICE METERS ON /' HARBOR /FLOATS ' ' NEW PRE-PAY /METER FOR COMMUNITY BOAT/DRY-DOCK GRID 1"=150'- PROVECT:ELFIN COVE =-swet'=150"Department of Comat ty and Ponomie DevelopmentENERGYINFRASTRUCTUREPROJECTSDESIGNEDBY:oe:2/10/06 te ow AIDEA/AEATHEriwisero|"yA Sul Som See FEALASKAENLARGEDAREASITEPLANFLFIN-coR-Mm2|M2 5 maar hacharage,hoske Sa803 @ PORTION OF ! .APPROX.LOCATION OF EXISTING NN EXISTING PROPERTYENTRY/*.LINES,TYPSTORAGEo™™.LODGE AREA . R-1 OCCUPANCY ! INTO PRE-CAST NNPUBLICCONCRETE s EASEMENT oN&WITHIN |NN5)OF WOOD FRAME NNywCENTERLINEiACHASEAROUNDTtOFPUBLICEXHAUSTRISERSEASEMENTTOBEREMOVED |POWER PLANT F-1 OCCUPANCY wooD PRE-CAST |CONCRETE a TO REMAIN ' t t t ;X RADIATOR !SHED TO BE(13)|REMOVED t : !| i) |||»;| |1"=10 | DYN----COMMUNITY BUILDING A-3 OCCUPANCY WOOD FRAME CONSTRUCTION t t ( I PROJECT:ELFIN COVE DRAWN BY:SCALE 1"=10°State of Alagko ENERGY INFRASTRUCTURE PROJECTS DESCNED BY wre 2-10-06 x,ee como Eire DevelopmentTm:POWER PLANT PLE Ae Sheet OF WEP ED Soe,PBALASKAEXISTINGSITE/DEMOLITION PLAN FLFIN-CDR-M3 M3 5 "ee Anchorage,Navka 39503 EXISTING PROPERTY LINE,TYP LODGE !aeR-1 .0 TO 5'FROM OCCUPANCY oN POWER PLANT WOOD FRAME ;. t WY Leceen 's oN 5'10 10°FSRK”FROMEES /\POWER PLANT KERNS p >. teetAe,POWER PLANT SOO t oN/),F-1 OCCUPANCY WXXX I . -_RES1OOO?ffHSSLOLSyseTHRSyCONSTRUCTIONSSK|\SKS x REQUIRED,SKS I IMAGINARY !KEK INTERIOR WALL SOK KR K 'PROPERTY LINE, ea secegee PROTECTION ONLY SKK TYP Pos SKK YoCOO/)Los SY :SOS RELOCATED ENTRY/;y SEK STORAGE ROOM 1 |t 1 CENTERLINEOFPUBLICEASEMENTCOMMUNITY BUILDING A-3 OCCUPANCY 1 ||WOOD FRAME 'CONSTRUCTION-- 'l | 1 |”, j 1=10 PROJECT:ELFIN COVE DRAWN BY:SCE:I"=10°State of Alaska ENERGY INFRASTRUCTURE PROJECTS DESCNED BY ome:2/10/05 [Xe eK AIDEA/A namie DementTMPOWERPLANTPLEWASHEETOFAEDeSeoSoe,JBALASKA PROPOSED FIRE SEPARATION PLAN FLFIN-coR-M4|M4 5 ee Anchorage,Meaka $9503 AUTOMATIC FILL 100 GALLON DAY TANK 4asef-DETTE ALONE ATO Le ee ae Ceeb4 b-. . FIRE SUPPRESSION CONTROL PANEL &i AGENT RACK i STATION SERVICE PANEL &TRANSFORMER I a > GEN#3,64kW (=eS !utaHOSPITALGRADEit SILENCER,TYP(3)iL JEE=1jh. GENJ2 (>tts110kWCU Alt]x leF-2 GEN#1 (===190kW i HR-2 HEAT EXCHANGER,:of |RELOCATED PUMP,VALVES,ETC i | STORAGE ;MASTER GEN |GEN }GEN ito |#1 |#2 |#3 i a |AUTOMATIC- ”_\PARALLELING RADIATOR INSTALL SHED ROOF SWITCHGEAR VFD PANELS OVER RADIATORS PROVECT:DRAWN BY:JTD 2 3/16"=1'State of AlagkaENERGYINFRASTRUCTURE.PROJECTS asamp oe BCG -2jroos fe,Came Community and Economic Development POWER PLANT RENOVATION PLAN PLFIN-CDR-MS M5 .pat NN ord eat Ney La ie FBASISA APPENDIX B CONSTRUCTION COST ESTIMATE ALASKA ENERGY &ENGINEERING ELFIN COVE RURAL POWER SYSTEM UPGRADE FEBRUARY 10,2006 COST ESTIMATE SUMMARY DRAFT PRELIMINARY DESIGN REPORT TEMPORARY GENERATION $9,200 POWER PLANT BUILDING RENOVATION $18,400 POWER GENERATION DEMOLITION $7,800 POWER GENERATION UPGRADES $468,375 TANK FARM UPGRADES &FUEL PIPELINES $65,415 HEAT RECOVERY UPGRADES $22,500 DISTRIBUTION UPGRADES $53,700 MISCELLANEOUS $14,500 OVERHEAD $51,100 FREIGHT $32,649 CONSTRUCTION SUB-TOTAL $743,639 DESIGN AND CONSTRUCTION ADMIN.$70,000 CONSTRUCTION MANAGEMENT $70,000 PROJECT SUB-TOTAL $883,639 CONTINGENCY $132,546 15 % TOTAL PROJECT COST $1,016,185 TOTAL INSTALLED KW CAPACITY 364 kW COST PER KW OF INSTALLED CAPACITY $2,791.72 B-1 ALASKA ENERGY &ENGINEERING ELFIN COVE POWER SYSTEM UPGRADE CONSTRUCTION COST ESTIMATE FEBRUARY 10,2006 DRAFT PRELIMINARY DESIGN REPORT ITEM QUAN|UNIT UNIT MATL |UNIT]LAB |LAB }LABOR |CONTR |FREIGHT!TOTAL UNIT |TOTALCOSTCOSTHRS|HRS |RATE|COST COST COST COST WT WT(#) TEMPORARY GENERATOR Set Up Temporary Generator 4}lump $0 $0 40 40]$80]$3,200 $3,200 |4,000 4,000 Generator Rental 3}month $2,000 $6,000 0 oO}$80 $0 $6,000 0 POWER PLANT BLDG RENOVATION :0 Remove Entry &Exhaust Chas 1}lump $0 "$0 40 40]$65 |$2,600 $2,600 0 Misc Building Modifications 1}lump $3,000 $3,000 40 40}$65 $2,600 $5,600 0 New Entry/Storage 1{lump |$5,000 $5,000 80 80]$65]$5,200 $10,200 0 POWER GENERATION DEMOLITION Provide Temp Station Service 1|lump $0 $0 10 10}$65 $650 $650 0 Remove Three Generators 1}lump $0 $0 40 40|$65]$2,600 $2,600 0 Remove Switchgear &Conduit 1]lump $0 $0 20 20}$65}$1,300 $1,300 0 Remove Exhaust Silencers 1|lump $0 $0 10 10|$65 $650 $650 0 Remove Coolant/HR/Fuel Pipe 4}lump $0 $0 20 20|$651 $1,300 $1,300 0 Remove Radiators &HX 1{lump $0 $0 10 10}$65 $650 $650 0 Remove Exist Lighting 1|lump $0 $0 10 10|$65 $650 $650 0 POWER GENERATION UPGRADES 190 kW Genset (JD 6081)1|ea.$48,000 |$48,000 30 30]$80 $2,400 $50,400 |3,000 3,000 110 kW Genset (JD 6068)1|ea.$40,000 |$40,000 30 30|$80 $2,400 $42,400 |3,000 3,000 64 kW Genset (JD 4045)1|ea.$40,000 |$40,000 30 30;$80 $2,400 $42,400 }2,500 2,500 Switchgear 11 ea.|$140,000 |$140,000 60 60{$80 $4,800 $144,800 §2,000 2,000 Fire Supression 4}lump }$25,000 |$25,000 80 80|$80!$6,400 $31,400 |1,000 1,000 Major Electrical Equipment 1}lump $5,000 $5,000 50 50}$65 $3,250 $8,250 500 500 VFD &Day Tank Panels 1|lump |$18,000 |$18,000 40 40|$65 $2,600 $20,600 300 300 Wireway 1}lump $3,000 $3,000 40 40]$65 $2,600 $5,600 500 500 Conduit,Fittings,Wire,Etc.1}lump $7,000 $7,000 140}140]$65]$9,100 $16,100]2,000 2,000 Feeder &Shielded Cable 1}lump $6,000 $6,000 60 60]$65 $3,900 $9,900 |1,000 1,000 Ducts,Fans,Dampers,Etc.4}lump |$16,000 |$16,000 80 80!$65 $5,200 $21,200 }1,500 1,500Radiators2]ea.$9,000 |$18,000 20 40}$65 $2,600 $20,600 400 800 Hydronic Piping,Equip 1}lump $8,000 $8,000 150}450}$65 $9,750 $17,750 |2,000 2,000 Day Tank 1}lump $2,000 $2,000 10 10]$65 $650 $2,650 500 500 Day Tank Appurtenances 1]lump |$5,000 $5,000 30 30}$65]$1,950 $6,950 250 250 Fuel Oil Piping 1}lump $2,500 $2,500 40 40]$65 $2,600 $5,100 200 200 Hoses &Fittings 1}lump $1,500 $1,500 15 15|$65 $975 $2,475 200 200 Exhaust Thimbles,Pipe,Etc 1]lump }|$3,000 $3,000 60 60}$65]$3,900 $6,900 |1,000 1,000MiscStrut,Hangers,Fasteners 1{lump $4,000 $4,000 40 40]$65]$2,600 $6,600 500 500 Fill Coolant,Fuel,&Lube 1}lump $5,000 $5,000 20 20)$65 $1,300 $6,300 |3,000 3,000 ALASKA ENERGY &ENGINEERING ELFIN COVE POWER SYSTEM UPGRADE CONSTRUCTION COST ESTIMATE FEBRUARY 10,2006 DRAFT PRELIMINARY DESIGN REPORT ITEM QUAN |UNIT UNIT MATL |UNIT |LAB |LAB |LABOR |CONTR |FREIGHT]TOTAL UNIT |TOTALCOSTCOSTHRS|HRS |RATE|COST COST COST COST WT WT(#) TANK FARM &FUEL PIPELINES 2"Sch 80 Welded Coated 300]lin.ft.$8.00 $2,400 |0.30 90|$65 $5,850 $8,250 5 1,500 1"Actuator Valve 1{ea $1,400 $1,400 4 4]$65 $260 $1,660 25 25 2"Pipeline Filter 1{ea $1,200 $1,200 4 4|$65 $260 $1,460 20 20 2"Flanged Ball Vaives 4]ea $225 $900 2 8|$65 $520 $1,420 30 120 2"Flanged Check Valves 2}ea $175 $350 2 4|$65 $260 $610 30 60 Pressure/Vacuum/Whistle Ventg 7]ea $250 $1,750 2 14|$65 $910 $2,660 20 140 1"Flanged PRV 3}ea $475 $1,425 4 12|$65 $780 $2,205 10 30 New Drop Tubes on Disp Tanks 1{lump $300 $300 20 20|$65]$1,300 $1,600 |1000 1000 Signs 1}lump $500 $500 10 10]$65 $650 $1,150 100 100 6'Chain-Link Fence 350}lin.ft.$10.50 $3,675 |0.50 175)$65]$11,375 $15,050 15 5250 Dock Pipeline Supports 1|_lump $2,000 $2,000 60 60|$65 $3,900 $5,900 1000 1000 Paint Dock Pipelines 1,500}sq.ft.$0.60 $900 |0.10 150}$65 $9,750 $10,650 0.20 300 Classified Boundary Seal-Offs 1}lump $1,000 $1,000 40 40]$65 $2,600 $3,600 1000 1000 Conduit,Conductors,&Devices|4{lump $4,000 $4,000 80 80}$651 $5,200 $9,200]1000 4000 HEAT RECOVERY UPGRADES Arctic Pipe 1|lump $2,000 $2,000 40 40]$65 $2,600 $4,600 1000 1,000 PP Heat Exchanger 1]ea.$2,500 $2,500 20 20|$65]$1,300 $3,800 500 500 PP Heat Recov Pipe &Devices 1|lump $1,000 $1,000 100}100)$65 $6,500 $7,500 |1,500 1,500 Buildings HX &Piping 2]ea.$2,000 $4,000 20 40|$65 $2,600 $6,600 100 200 DISTRIBUTION UPGRADES 10kVA Residential Xfrmr 1{lump |$2,000]$2,000]30{30|$80]$2,400 $4,400 |2,000 2,000 20kVA Harbor Xfrmr 1}lump {$2,500]$2,500 30 30;$80]$2,400 $4,900 |2,000 2,000 Drydock Grid Pre-Pay System 1]lump }$8,000 $8,000 40 40;$80}$3,200 $11,200 50 50 Harbor Feeder 4}lump $2,000 $2,000 40 40|$80 $3,200 $5,200 500 500 Harbor Pedestals 8]ea.$1,500 |$12,000 25}200}$80]$16,000 $28,000 50 400 MISCELLANEOUS Spill Response Supplies 1|lump |$2,000 $2,000 0 O}$65 $0 $2,000 600 600 SmartAsh with spare parts 1}lump $3,000 $3,000 0 0}$65 $0 $3,000 200 200 Misc Hardware 1]lump |$2,000 $2,000 0 O}$65 $0 $2,000 500 500 Misc Tools &Safety Gear 1]lump $5,000 $5,000 0 O|$65 $0 $5,000 500 500 Welding Rod,Gases,Etc.1{lump $2,500 $2,500 0 0;$65 $0 $2,500]1000 4000 OVERHEAD Audit Grants 1}lump $6,000 $6,000 Rent Heavy Equip.1}Jump .$5,000 $5,000 Test &Commission System 1}lump 60 60}$80{$4,800 $4,800 B-3 ALASKA ENERGY &ENGINEERING ELFIN COVE POWER SYSTEM UPGRADE CONSTRUCTION COST ESTIMATE FEBRUARY 10,2006 DRAFT PRELIMINARY DESIGN REPORT ITEM QUAN;UNIT |UNIT MATL |UNIT}LAB |LAB |LABOR |CONTR |FREIGHT)TOTAL |UNIT |TOTALCOSTCOSTHRS|HRS |RATE|COST COST COST COST WT WT(#) Train Local Operators 1|lump 40 40]$80|$3,200 $3,200 Superintendent Overhd Off-Site 1}lump 40 40}$80]$3,200 $3,200 Superintendent Overhd On-Site 1{lump 40 40]$80]$3,200 $3,200 Crew Travel Time 1}lump 80 80|$80 $6,400 $6,400 Crew Airfares 8|trips $6,400 $6,400 Crew Per Diem 200]mn.dy $8,400 $8,400 Housing Rent 3]mo.$4,500 $4,500 FREIGHT 48,245 Barge Freight Seattle-Juneau [48,245 ib.$0.20 $9,649 Freight &Equip Mob 4 day $3,000 $12,000 Project De-Mob 2}day $3,000 $6,000 Misc Small Freight &Gold Strea 11 iump $5,000 $5,000 CONSTRUCTION SUB-TOTAL $483,500 2,650 $197,390|$30,300 |932,049 |$743,609 Engineering (Design &CCA)1}{lump $70,000 Construction Management 1{lump $70,000 PROJECT SUB-TOTAL $483,300 $197,300 [$170,300 |952,049 |$800,039Contingency15]%|$132,546|{TOTAL PROJECT COST $1,016,185 B-4 ALASKA ENERGY AND CROOKED CREEK/JIM'S LAKE HYDROELECTRIC GENERATION FEBRUARY 10,2006 ENGINEERING COST ESTIMATE SUMMARY DRAFT PRELIMINARY DESIGN REPORT WORK ITEM MATERIAL]LABOR TOTAL REVISED 1984 EST (SEE APPENDIX E)$600,000 INCREASE FOR HIGHER LABOR RATE $60,000 $60,000 LESS 10'x12'POWERHOUSE SHED &CONCRETE PAD ($7,500)|($6,700)($14,200) LESS PELTON TURBINE/SINGLE-PHASE GEN ($142,000)|($8,000)($150,000) LESS SINGLE-PHASE TRANSMISSION COMPONENT ($58,000)|($8,700)($66,700) 4,000'OF ACCESS TRAILS $10,000 |$30,000 $40,000 HYDRO POWERHOUSE &FOUNDATION PILINGS $30,000 |$10,000 $40,000 TURGO TURBINE/3-PHASE GEN W/PLC &SWITCHGEAR $160,000 |$20,000 $180,000 ARMORED FIBER OPTIC DATA CABLE $12,500 $4,500 $17,000 9,000'5kV 3-PHASE #2 ARMORED CABLE TRANS LINE $135,000 |$65,000 $200,000 112.5kVA STEP-UP &STEP-DOWN TRANSFORMERS $16,000 $8,000 $24,000 DIESEL PLANT SWITCHGEAR MODIFICATIONS $15,000 $5,000 $20,000 CONSTRUCTION SUB-TOTAL $950,100 FREIGHT $40,000 DESIGN AND CONSTRUCTION ADMIN.$80,000 CONSTRUCTION MANAGEMENT $80,000 FERC PERMITTING $150,000 PROJECT SUB-TOTAL $1,300,100 CONTINGENCY $195,015 15 % TOTAL PROJECT COST $1,495,115 B-5 APPENDIX C SITE CONTROL DOCUMENTS S.OOUTHEASTERN TITLE AGENCY,INC. 210 LAKE STREET .PHONE:(907)747-3278 P.O.BOX 1223 FAX:(907)747-3616 SITKA,ALASKA 99835 E-MAIL:STAI@PTIALASKA.NET PLAT CERTIFICATE Our Order Number:S-05-6720 Alaska Energy and Engineering,Inc..Your File No. Steven J.Stassel,P.E. P.O.Box 111405 Anchorage,Alaska 99511-1405 Dear Mr.Stassel, This is a Plat Certificate as of December 8,2005 at 8:00 am for a plat on the following property : (See attached Exhibit 'A') This company hereby certifies that the record title is vested ,as follows,free from any liens,encumbrances,and objections of record except as follows : VESTED IN: (See attached Exhibit 'B') SUBJECT TO: 4.Provisions and Reservations contained in the Patent from the United States of America. 2.Provisions and reservations as contained in the patent from the State of Alaska. Affects:Parcel #1,#2 3.This property is outside any taxing district. 4.Any adverse claim based on the assertion that any portion of the said land was not tide or submerged land subject to disposition by the State of Alaska on the effective date of the grant of said land,or that any portion thereof has ceased to be tide or submerged land by natural causes or imperceptible causes. (B)Rights and easements for commerce,navigation and fishery. (C)Any prohibition to limitation on the use,occupancy or improvement of the land resulting from the rights of the public or riparian owners to use any waters which may cover the land. Affects:Parcel#1,#2,#3 -Ato cis3 ,42,rrp 5.Plat Note :The natural meanders of the mean high water line forms the true bounds of Fuel Dock Subdivision.The approximate line of mean high water,as shown,is for area computations only.The true Fuel Dock Subdivision corners being on an extension of the sidelines and there intersection with the natural meanders. Affects:Parcel#1 for c.03= 6.Declaration of Public Right of Way Recorded :July 2,1999 Book/Page >137/756 Affects Parcel #2,#4,#5,#8,&8#9 A Drie,Loe Sy,he EXCEPTIONS CONTINUED Page {PAGE } 7.Deed of trust to secure an indebtedness of the amount herein stated and any other amounts payable underthetermsthereof. Amount :$200,000.00 Dated :June 30,2003 Recorded :July 8,2003 Document No.:2003-001672-0 TRUSTOR :COMMUNITY OF ELFIN COVE,a non-profit corporation TRUSTEE :SOUTHEASTERN TITLE INSURANCE AGENCY,INC. BENEFICIARY :ROBERTL.DUDLEY,Jr.and LESLIE DUDLEY,husband and wifeAffects:Parcel#1 AT?th 4, 8.Deed of trust to secure an indebtedness of the amount herein stated and any other amounts payable under the terms thereof. Amount :$180,526.20 Dated :November 26,2002 Recorded :December 2,2002 Document No.:2002-002261-0 TRUSTOR :SHIRLEY and WILLIAM PERKINS,wife and husband TRUSTEE |:FIRST AMERICAN TITLE BENEFICIARY :WELLS FARGO FINANCIAL ALASKA,Inc. Affects Parcel#6 49TG 9.Right,title and interest of the herein named party because of the circumstances herein noted. Party :SHIRLEY and WILLIAM PERKINS,wife and husband Reason :By being trustors on the deed of trust recorded 12/2/2002 as Document No.2002-002261-0 Affecting Parcel #6 LOTG 10.Easement and Agreement for water use Dated :December 27,1966 Recorded >:May 15,1967 Book/Page :12/75 through 77AffectsParcel#7 and Parcel #8 Lot |)(2 11.Land Use Permit Recorded :May 14,1996 Book/Page :120/778 through 785AffectsEncroachmentofhousefromParcel #6 onto a portion of Parcel #5 Lore,3 12.Encroachments,if any,of the dock,oil warehouse,and oi]pipes on Lot 2 U.S.Survey 2946(Parcel #4)or Lots 1 and 2 Plat 2002-6 (Parcel #1),as shown on U.S.Survey 2946 13.Unrecorded Leases,if any END OF EXCEPTIONS Southeastern Title ayWandVa KDuaneL.Kauffman EXCEPTIONS CONTINUED Page {PAGE } D7 EXHIBIT "A” Order Number:S-05-6720 OPARCEL #1:Lot One (1)and Lot Two (2),FUEL DOCK SUBDIVISION,according to the plat thereof filed February 4,2002 as Plat No.2002-6,Sitka Recording District,First Judicial District, State of Alaska. PARCEL #2:Lot One (1),ALASKA TIDELANDS SURVEY No.442,according to Plat No.57, Sitka Recording District,First Judicial District,State of Alaska PARCEL #3:Tract A,ALASKA TIDELANDS SURVEY 1473,according to the plat thereof filed September 14,2000,Plat 2000-12,Sitka Recording District,First Judicial District,State of Alaska PARCEL #4:Lot Two (2),U.S.Survey 2946,Sitka Recording District,First Judicial District, State of Alaska PARCEL #5:Lot Three (3),U.S.Survey 2946,Sitka Recording District,First Judicial District, State of Alaska PARCEL #6:Lot Six (6)EXCEPTING THEREFROM the northwesterly 42 feet,U.S.Survey 2946,Sitka Recording District,First Judicial District,State of Alaska. PARCEL #7:All of Lot Seven (7),U.S.Survey 2946,ALSO INCLUDING a portion of Lot Thirteen A (13A),U.S.Survey 2946,Sitka Recording District,First Judicial District,State of Alaska,more particularly described as follows; Beginning at a point on the common lines of Lot 7 and 13A from which Corner No.4 of Lot 413A and Corner No.1 of Lot 7,bears S 86°00'00'E 52.96 feet;thence S 31°54'57”E,17.38 feet;thence N 58°05'03”,24.00 feet;thence N 86°00'00"W,29.63 feet to the point of beginning PARCEL #8 :Lot Thirteen A (13A),U.S.Survey 2946,EXCEPTING THEREFROM,the portion more particularly described as follows;Beginning at a point on the common lines of Lot 7 and 13A from which Comer No.4 of Lot 13A and Corner No.1 of Lot 7,bears S 86°00'00'E 52.96 feet;thence S 31°54'57'E,17.38 feet;thence N 58°05'03”,24.00 feet;thence N 86°00'00"W,29.63 feet to the point of beginning, Sitka Recording District,First Judicial District,State of Alaska PARCEL #9:Lot Thirteen (13),U.S.Survey 2946,Sitka Recording District,First Judicial District,State of Alaska LEGAL DESCRIPTION -continued PARCEL #10:Lot Thirteen B (13B),U.S.Survey 2946,Sitka Recording District,First Judicial District,State of Alaska VESTING EXHIBIT Order No:S-05-6720 PARCEL #1,#2,#4,#8 :COMMUNITY OF ELFIN COVE,a non-profit corporation established and existing under the laws of the State of Alaska PARCEL #3 &#10:STATE OF ALASKA PARCEL #5 :ALASKA MENTAL HEALTH TRUST AUTHORITY PARCEL #6 :SHIRLEY C.PIEDRA PARCEL #7 :BARBARA J.BELL and DENNIS A.BELL PARCEL #9 :ELFIN COVE EAGLE CHARTERS ALASKA,LLC. APPENDIX D ELECTRICAL DATA 70000 -secccusseuscssuesesuscassussssuecssuessuessusssusssssssuessssssusesssucsssuessavessuscsssnuccssusees Haan semen nn nnneennneeeeeeeeeneennee en sees ees nenasaeeneeeeneeesneeenaee sense neenen senses, Elfin Cove Monthly kWh Generated 60000 50000 giubhasegitiiess40000 +KwHGen30000 +H sbeabsasesnacacaisiaTHIreei20000 +:-fo)oSoOOo;1TittiesoSSSeSORSRSRSPESSERS|Ei 2001 0 2002 2003 E2004 m@ 2005 Betetitttreeseteh.siteteritereTitreedD-1 kW160- 140 Elfin Cove Peak kW Load POCO VTA N EERO ree eee eee ete ete EEE TEU NOU ETERS NEU ETUC CUES UES EU ENO U STUER ECU E NUT O NNER MEER ROUSE USERS UTES SSCS EUS TOUTE URES SOS TEU E ETE TUES TEES SD ORER ENT OE EEE OOE OES E Eee ee EEN SONNE UNOUETEUEteTeeeueeeeEaD 120 - 100 - 80 + 60 |40 &2001 0 2002 2003 m@ 2005 20 sSEEUSEUSEUEEESTESSESEUESSHEEEaes Elfin Cove Average kW Load 100 -deteeesensceeeseseeeeeceezee 3 2001 02002 2003 @ 2005 EEE Y $EEEEESSSISNTRISOSESESErosesSSSSeSasssesese: %, - % --_-_<_ ”? EEE " %,>(2)uOg(9)ey(S)K/o) " 4 (wv)%,(9)Oo | ecasssncnescausguavconcesssscansnsencscovensvesvereuergescepsonegasesacsess | SeatgseastesescscccsvasscscssccssccscseesseessstessscesesisssasssecesssesesPESESERSSSS#SEHRSS22: Month D-3 Peorerererrrrr errrrri reer rey se)SsN@®an|NOQOoN _.ole ormUCOTFOUTCCTDCCsC <$§ews aekR#$NCEESsCs-Ci-'i''ODS UC COleTeCUDODSTCOQOTS- -'"'i' DW oO QoQ oOo oOo oOo oO OF O=F #O= © oOo oOo ff 0O. 6Oo>F OF OF CO Oo @© S SGFGFGFFSFFfFFFFSGS - SOjo oO Ye OS WO SF WON5STFMOOMDMDODG8OMDOOM APPENDIX E DESCRIPTION OF HYDROELECTRIC PROJECT ONE COMPANY Memo Many Solutions™FOR To:Steve Stassel,AE&E From:_Bob Butera,HDR Kg Project:Elfin Cove Hydroelectric Project CC: Date:|December 15,2005 Job No:201662/34153 Introduction Alaska Energy and Engineering,Inc (AE&E)is performing a power and fuel facilities investigation for the town of Elfin Cove (Elfin Cove).A hydroelectric project was proposed for this community in the early 1980's.As part of this analysis AE&E requested HDR Alaska,Inc. (HDR)to: 1.Review existing available hydroelectric study information (April 1984 Supplement to the Elfin Cove Reconnaissance Study)and J.W.Bean data (to be provided later). 2.Determine availability of existing stream gauge data for nearby streams and adjust data to simulate available flows for Jims Lake and Crooked Creek. 3.Assess proposed hydro construction scenario and provide opinion of constructability and reliability.Provide recommendations for improvements to proposed construction. 4.Review proposed hydro construction cost estimate.Provide a budgetary construction cost estimate based on proposed improvements Funding for this work was very limited and therefore the extent of this analysis is cursory. 1.Review of Existing Information A Reconnaissance Study of Energy Requirements and Alternatives for Elfin Cove was prepared in February 1984 by a consultant on contract to the Alaska Power Authority (APA).That report recommended a small hydro facility on Roy's Creek,a small creek in Elfin Cove.The APA later found Roy's Creek not feasible and recommended a different small hydro facility about one mile south of the town.This project would use the combined flow from Crooked Creek and from the drainage basin of Jim's Lake.The APA prepared a report "Supplement to the Reconnaissance Study of Energy Requirements and Alternatives for Elfin Cove”in April 1984.This supplement focused exclusively on a hydroelectric project on Crooked Creek and Jim's Lake (Crooked Creek Project). The Roy's Creek project (and potential projects at 2 other small local streams,Emie's Creek and Joe's Creek)was judged not feasible because long time residents had monitored the creek and stated that it was extremely flashy.It would essentially go dry during periods of dry or cold weather and would turn into a torrent during precipitation events.Based on review of aerial photography,the drainage basin of Roy's Creek appears to be steep bedrock with little vegetative cover.This landform would result iri the reported stream conditions.Based on this we concur with the APA finding that Roy's Creek would not be suitable for hydroelectric development. The Crooked Creek Project as proposed by the APA would divert the flow from Crooked Creek to Jim's Lake.APA reports state that Jim's Lake has a surface area of approximately 4 acres and is reported to be 24 feet deep.The Jim's Lake drainage basin is very small,but APA noted that the lake could provide some storage to potentially allow the project to operate during normal HDR Alaska,Inc.2525 C Street Phone (907)644-2000 Page 1 of 6Sulle305Fax(907)644-2022 Anchorage,AK 99503 www.hdrinc.com winter and summer low flow periods.The APA Crooked Creek project has the following characteristics. Table 1:APA Crooked Creek Hydro Project Characteristics Location Crooked Creek and Jim's Lake Capacity 80 kW Gross Head 350 feet Net Head 330 feet Design Flow 4.5 cfs Flume 1650',18”,Aluminum CMP,lain on ground Penstock 2400',12”,HDPE Transmission Line 6700 feet,on ground Estimated Construction Cost $400,000 (1984 dollars including plant,tline anddistributionsystemintown) One of the recommendations of the APA supplement was to collect at least one year of continuous streamflow records for the Crooked Creek project.This streamflow data collection was initiated in July 1984 and is discussed in the Hydrology section below.Other recommendations were to confirm the elevation of the project and to do a detailed reconnaissance of the flume,penstock and transmission line routes. A December 6,1990 AEA memorandum from Eric Marchegiani addressed the project.This memorandum stated that there was a 1990 cost estimate of $532,000 to construct the project. This memorandum suggested the following steps to further this project: 1.Review and analysis of the collected streamflow data 2.Site visit and preliminary design to verify the constructability of the project and cost estimate. 3.Prepare an economic analysis 4.Prepare a financial analysis 5.Initiation of permitting 6.Finalize design 7.Finalize permits 8.Finalize financing 9,Construction manager 10.Construction contract A rough estimate for the above work was $571,000 including a 10%contingency. Elfin Cove now has a central diesel power plant and an electrical distribution system No other known work has been done regarding a hydroelectric project at Elfin Cove. 2.HydrologyTheAPAestimate of power was based upon a rough estimate of streamflow made by comparingthedrainageareaoftheProjectwiththeunitdischargeofotherU.S.Geological Survey gaged streams on Chichagof Island.The APA report recommended that stream gages be installed on Crooked Creek and on Jim's Lake and a year of data collected. HDR Alaska,Inc.2525 C Street Phone (907)644-2000 Page 2 of 6Suite305Fax(907)644-2022 Anchorage,AK 99503 www.hdrinc.com This streamflow data collection was done by the Alaska DGGS.In a December 6,1990 AEA memorandum it was stated that the DGGS collected 1%to 2 years of streamflow data (July 1984 to April 1986)but data for the period of July 6,1984 to May 30,1985 was all that was found by Mr.Marchegiani in 1990 or at the time of this review.This data includes daily mean,minimum and maximum flow for the period of record at Crooked Creek and at Jim's Creek.There is also a combined daily discharge record for the combined Crooked Creek and Jim's Creek sites.This combined data includes mean,minimum and maximum daily flows and also includes median daily flows.The methodology or quality of this data is unknown as there is no rating curve or summary of measurements.Of the 328 days of record,66 days (20%)were estimated.Table 2 is a summary of this combined flow data. Table 2:Crooked Creek/Jim's Creek Streamflow Data Mean |Minimum |Maximum |Median Year Month Flow Flow Flow Flow (cfs)(cfs)(cfs)(cfs) July 2.87 1.09 24.74 1.81 August 2.46 0.96 38.10 1.42 September 2.11 0.76 19.26 1,18 October 2.94 0.89 32.28 1,29 November 1.95 0.76 26.38 1.18 December 2.74 0.59 17.82 1.66 January 4.33 0.96 38.74 3.01 February 1.94 1.81 2.65 1.86 March 1,35 0.72 3.87 1.18 April 1.64 1.09 2.03 1.70 May 3.20 1.33 13.48 2.84 1984 July-Dec 2.48 0.59 38.1 1.42 1985 Jan-May 2.95 0.72 38.74 2.19 July 84--May 85 2.64 0.59 38.7 1.70 The closest USGS streamgage that was operational on Chichagof Island in 1984 and 1985 was located on Tonalite Creek near Tenakee.It was located on the south side of Tenakee Inlet across from Tenakee,approximately 55 miles south of Elfin Cove.Comparison of this site to the project site is shown in Table 3.This comparison shows that the two basins have different aspects.The Crooked Creek basin is also much smaller,and has less forested area,two characteristics that would tend to make the flows flashier. Table 3:Comparison of Basin Characteristics for Crooked Creek and Tonalite Creek Crooked TonaliteSiteCharacteristicCreek/Jim's CreekLake Drainage Area,square miles 0.55 14.5 Lake Area,percent |0 Area of Forest,percent 72 88 Range of Basin Elevation,feet 350 -2048 50 -3075 Mean Basin Elevation,feet 1100 950 Basin Aspect west north The collected Crooked Creek/Jim's Creek streamflow data was converted to runoff (cfs persquaremile)and compared to Tonalite Creek.This is shown in Table 4. HDR Alaska,Inc.2525 C Strest Phone (907)644-2000 Page 3 of §Suite 305 Fax (907)644-2022Anchorage,AK 99503 www.hdrine.com Table 4:Comparison of Runoff for Crooked Creek and Tonalite Creek Location Drainage Period of Record Mean Runoff Area Daily Flow |(cfs/sq mi)(sq mi)(cfs) Crooked Creek 0.55 July 6,1984 -May 30,1985.Ali data 2.4 4.4 Crooked Creek 0.55 July 6,1984 -May 30,1985.Estimated 2.6 4.8 data not used. Tonalite Creek near Tenakee 14.5 1968 to 1988 98.3 6.8 Tonalite Creek near Tenakee 14.5 July 6,1984 -May 30,1985.All data 105 73 Tonalite Creek near Tenakee 14.5 July 6,1984 -May 30,1985.Estimated 95 6.6 data not used. Analysis of Table 4 shows that: e For comparable periods of record the runoff per square mile for Crooked Creek was approximately 70%of the runoff from Tonalite Creek. e The mean daily flow in Tonalite Creek for the July 6,1984 to May 30,1985 period was similar to the long term average at this station.It can be reasoned that the gage record at Crooked Creek represents an average year. A flow duration curve for Crooked Creek is shown below.This curve was prepared from 20 years of data from Tonalite Creek adjusted for drainage area and multiplied by 70%to account for the variation in runoff between the two sites observed between July 1984 and May 1985.Flows above 5 cfs are truncated to improve the readability of the chart. Crookec*Jim's Creek Flow Duration Curve Bno SDD 400 350 Flow{cfs}2D0 1DD oo0 ¥ ow 40%50%ao0% %Exceedance HDR Alaska,Inc,2525 C Street Suite 305 Anchorage,AK 99503 Phone (907)644-2000 Fax (907)644-2022 www.bdrine.com Page4of6 3.Review of Project Layout and Constructability The general layout of the APA project appears to be practical although access considerations do not appear to be addressed.A four wheeler trail would need to be constructed from town to the powerhouse and to the intake and the diversion.A landing dock for powerhouse boat access may also be required.; Depending on soils and slopes,an open channel between the diversion structure and Jim's Lake may be feasible and would save the cost of pipe at this location.The diversion structure and channel would be designed to limit flows and peak flows would be bypassed down Crooked Creek. The idea of using Jim's lake to provide storage to even out the flows from this small creek is a good one.Verification of usable volumes was not done as part of this review. The APA report noted that the anadromous fish catalog did not include either of the project streams.HDR verified this,but non-inclusion in the catalog does not mean there are no fish in the streams.This would need to be field verified. A site reconnaissance would be necessary to confirm the viability of the remainder of the project. 4.Review of Estimate of Cost In 1984 the APA provided a sketch of the project and estimated costs for the project.The APA project had the following components and assumptions: e An 80 KW project was the most appropriate size for Elfin Cove,Project included power generation,transmission line to town and distribution system in town 3 foot tall log crib diversion structure CMP or open channel flume to Jim's Lake.Estimated length x 1.4 for contingency. Siphon from Jim's Lake 12”HDPE penstock on ground surface.Estimated length x 1.4 for contingency.Wood frame powerhouse Pelton turbine Power line lain along the ground from powerhouse to town.Estimated length x 1.4 for contingency. Force account local labor with average rate,including fringe benefits of $20 per hour Work completed mostly with hand tools Access via trails,staging of materials with helicopter 25%contingency factor. Engineering not included.CM at $40,000,administration at $15,000. FERC permitting costs not included Agency permitting costs not included. The cost estimate was completed March 1984. HDR has updated this estimate based on the following assumptions: e The concept project will be as recommended by APA. e The original estimate and contingency factors by APA are reasonable and accurate. HDR Alaska,Inc.2525 C Street Phone (907)644-2000 Page 5 of 6Suite305Fax(907)644-2022 Anchorage,AK 99503 www.hdrinc.com e The project will pay force account wage rates.An average wage rate of $35 per hour including base wage,fringe,WC,and overtime @ seven 10-hr days/week was provided by AE&E as typical for rural projects. The project will be constructed in 2005. Inflation factor of 1.86 based on Engineering News Record construction cost index. (March 1984=4118,December 2005=7647). e Electrical distribution system costs will not be included. Estimate does not include the costs of design,permitting,contract administration, construction financing,project financing,and construction management. With the above assumptions the estimated direct construction cost for the project is $600,000. Summary and Conclusions This project appears to be laid out in a practical manner.Almost one year of streamflow information has been collected during a year that appears to represent average flow conditions for this area.The data shows that this creek has a low but consistent streamflow.Future studies should include: 1.A reconnaissance investigation to determine project layout,access routes,verify elevations of project facilities and determine lake depth and volume. 2.An investigation to determination whether fish are present in Crooked Creek or the Creek that drains Jim's Lake.This may affect project feasibility and layout. 3.A feasibility study to select the optimum size of project component,determine the potential available power and estimate project cost and economic feasibility. HDR Alaska,Inc.2525 C Street Phone (907)644-2000 Page 6 of 6Suite305Fax(907)644-2022Anchorage,AK 99503 www.hdrinc.com APPENDIX F MEETING SUMMARY LETTERS