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HomeMy WebLinkAboutFunding Proposal for Pelican Energy Infrastructure Projects May 13, 2006RD -450:Managing Rural Projects 15 pages,including cover page Assignment:Term Project Funding Proposal for Pelican Energy Infrastructure Projects Submitted to Rural Utilities Service High Energy Cost Grant Program By the City of Pelican P.O.Box 737 Pelican,Alaska 99832 May 13,2006 By Patricia Phillips P.O.Box 33 Pelican,Alaska 99832 907-735-2240 Fax:907-735-2480 pdjep@ptialaska.net Submitted to: Dr.Ralph Gabrielli Professor University of Alaska Fairbanks City of Pelican P.O.Box 737 Pelican,Alaska 99832 May 13,2006 Assistant Administrator,Electric Program Rural Utilities Service U.S.Department of Agriculture 1400 Independence Avenue,SW,STOP 1560 Room 5165 South Building Washington,DC 20250-1560 Re:High Energy Cost Community Grant Program To Whom It May Concern: Please consider the enclosed Pelican Energy Infrastructure Projects proposal application for the High Energy Cost Community Grant Program.The project shall construct: e Bulk Fuel Upgrade (BFU)-New bulk fuel storage and fuel handling facility e Rural Power System Upgrade (RPSU)-New power plant module with automated controls for existing hydroelectric powerhouse,and power distribution upgrades. e Hydroelectric Project Hydroelectric facility water conveyance and powerhouse infrastructure upgrades. The City of Pelican is working with the participation and cooperation of the Pelican Utility District and Pelican Seafoods,divisions of Kake Tribal Corporation,Alaska Energy Authority and sub-consultants,Alaska Electrical and Engineering,Inc.,Polar Consult Alaska,Inc.and HDR Alaska,Inc.The Concept Design Report (CDR)and Construction Cost Estimate for Energy Infrastructure Projects in the Community of Pelican,prepared for the State of Alaska,Alaska Energy Authority/Rural Energy Group, prepared by Alaska Energy and Engineering,Inc.was completed on September 13,2005. The CDR substantiates the current gensets are past their life-expectancy with poor fuel efficiency and high maintenance costs.The current bulk fuel farm was built in the 1940s. And the hydroelectric facility has a wooden penstock and flume with significant leakage which diminishes the capability of harnessing the hydroelectric power and requires use of expensive diesel generators for electricity. Thank you and please contact me with questions or comments at 907-735-2202 or mayor@pelicancity.net. Sincerely,; Patricia Phillips Mayor The City of Pelican agrees to facilitate the construction of safe,reliable and cost efficient energy infrastructure facilities and bulk fuel storage facility in Pelican,Alaska necessary to provide clean energy,stable electrical rates for residential and commercial users and to meet the economic development needs of Pelican. City of Pelican Comprehensive Plan -September 1998: Utilities:Goals,Objectives,and Actions Goal Statement: Maintain and improve the Pelican Creek hydroelectric source so that power can be obtained from this source rather than the more expensive and less environmentally sound diesel generation. Goal Statement: It is the goal of the City of Pelican to keep power rates stable and as low as possible. Action:Seek funding and install new fuel-efficient diesel generators. Objective:Pelican has a reliable developed hydroelectric source supplying the community with relatively abundant and cheap power.Promote/market this as a Pelican asset.Pelican is well-positioned to support power-intensive businesses,especially in fall and spring,and can offer attractive electric rates compared to other rural communities. Action:Support efforts to continue the State's Power Cost Equalization program. Action:Investigate alternatives to increase the supply of electrical power including raising the level of the dam. Action:Continue to upgrade and maintain the secondary containment around the oil tank farm. Action:Clean the tanks and test the integrity of the tank bottoms. Additional Actions: An energy infrastructure business plan shall be developed demonstrating profitability.A percentage of revenues will be set aside for renewal and replacement and ongoing maintenance.A monthly profit and loss statement will determine if the objective of containing costs and accumulation of revenues will build a financial record of funds needed for long term sustainability. Clean,safe,and reliable operations of energy infrastructure will reduce the ongoing repairs that are escalating due to old equipment.Monthly maintenance reports will verify a reduction in overall maintenance needs and assurance of safety measures are being met. EXECUTIVE SUMMARY Applicant The City of Pelican is a fishing community founded in the 1930's.The City of Pelican incorporated as First Class City of the State of Alaska on March 7,1974. Project Title Construction of the Pelican Energy Infrastructure Projects Contact Patricia Phillips,Mayor -City of Pelican Telephone:907-735-2202 Fax:907-735-2258 Address:City of Pelican P.O.Box 737 Pelican,Alaska 99832 Email:mayor@pelicancity.net Funds Requested The total project construction cost including all design,supervision,inspection, permitting,and a 15%contingency (30%for hydroelectric project)is estimated to be: e $1,171,951 Bulk Fuel Upgrade e $1,540,557 Rural Power System Upgrade e $1,291,514 Hydroelectric Project $4,004,022 Estimated construction costs of energy infrastructure Target Community Pelican,Alaska is a coastal fishing community located on the northwest coast of Chichagof Island,on the east shore of Lisianski Inlet,near Cross Sound,in Northern Southeast Alaska. Project Description A more detailed analysis is provided in the Concept Design Report (CDR)and Construction Cost Estimate for Energy Infrastructure Projects in the Community of Pelican,prepared for the State of Alaska,Alaska Energy Authority/Rural Energy Group, prepared by Alaska Energy and Engineering,Inc.was completed on September 13,2005. Bulk Fuel Upgrade: Replace the existing tank farm,pipelines and associated fuel handling equipment in their entirety.In addition,new intermediate tanks will be installed at the new City modular power plant and at the existing Pelican Seafoods powerhouse.A new day tank will also be installed at the Pelican School.A truck loading area will be constructed along the boardwalk near the intersection with the fuel dock.Secondary containment requirements will be met by using double wall tanks equipped with the required overfill devices.The tank farm will be enclosed by a 6 ft.chain link fence and 1 ft.barbed wire top for security purposes.Pump controls and area lighting will be installed in the fenced security area. Power System Upgrade: Installation of a new modular diesel power plant,instrumentation and controls in the existing hydro powerhouse,an overhead fiber-optic communication cable between the modular power plant and existing hydro powerhouse for remote monitoring and control of the hydroelectric generators,and distribution upgrades. Hydroelectric Project: Replace concrete intake structure with new steep pipe and head box.Install new slide gate,screens,and screen cleaners.Replace open wooden flume with new steel pipe pressure conduit.Repair trestle.Replace wooden surge tank with new steel tank to handle increased head from the pressure conduit.Replace wood stave penstock with new steel pipe and replace penstock trestle and walkway.Perform an evaluation of turbine operations,including draft tube vent and modify as required.Perform minor upgrades to the hydro powerhouse.Coordinate project with Village Safe Water to provide support for new community water utility lines on penstock support trestles. Project Benefits and Outcomes e New infrastructure will meet International Fire Code and E.P.A.regulations The hydro powerhouse improvements and the new diesel generators will provide proper interface for long-term reliable service and improve the overall efficiency and output. Reduced air emissions,noise,and decreased risk of fuel spills. Stable and low electrical rates stimulate economic development opportunities. Less reliance on expensive diesel fuel for electrical generations. Removes fear of a major failure of existing infrastructure. State Rural Development Initiatives The City of Pelican is working the Alaska Energy Authority (AEA)to fund Pelican's Energy Infrastructure needs.AEA/Denali Commission has already approved $575,000 for final design plans for Pelican's energy infrastructure needs identified in the CDR. USDA Priority Criteria The City requests additional points based on the USDA Priority Evaluation Criteria: e Rurality -14 points.The population during the 2000 U.S.Census is 163.The 2005 population according to the State of Alaska Demographer is 118.The population fluctuates seasonally due to economic activity. e Economic Distressed Community -15 points.The City of Pelican is listed as an economically distressed community with the Denali Commission in Alaska. The City of Pelican shall retain ownership of the new infrastructure.The Pelican Utility District,Public Convenience No.24 and the Pelican Fuel Dock will be operated by Kake Tribal Corporation.A business plan will demonstrate and implement sound business principles for sustainability and will include all costs associated with management, operation and maintenance,renewal and replacement (after the design life has been achieved)necessary to maintain an acceptable level of service. Project Eligibility This project will replace obsolete diesel generators and upgrade the electrical distribution system with a new fuel-efficient power plant module designed to meet State of Alaska fire safety and building codes.The Pelican Utility District consists of five antiquated Caterpillar generators (three operational,two out of service)located in the engine/refrigeration room at Pelican Seafoods cold storage plant as well as switchgear and a two-way transformer bank distribution connection.This provides power to all of Pelican Seafoods freezers and facility by electric motor driven refrigeration equipment and is used to supplement community power generation during periods of low hydroelectric production.The gensets range from 100kW to 400kW,with a nominal capacity of 1360kW (approximately 1,000kW currently usable).All units run at 1,800 RPM and power generation is at 480V 3-phase.Switchgear is manually operated and includes a section for each generator and distribution system.The system allows the diesel generators to run in parallel with the hydroelectric turbines as required.Power from the gensets is routed to a step up transformer bank adjacent to the seafood plant for conversion to 2,400/4,160V 3-phase power for distribution.When the freezer plant generators are not running,480V 3-phase power is fed back to the freezer plant station service through the same transformer bank. The new power plant module will be located adjacent to Pelican Seafoods on a subdivided portion of Pelican Seafoods Subdivision,Tract B.The new power plant module will have adequate capacity to meet current peak community loads in case of temporary total loss of hydroelectric generation and additional capacity to supplement power generation needs at Pelican Seafoods. The Pelican Seafoods bulk fuel storage facility consists of six in-service vertical steel bulk storage/dispensing tanks,three product marine header,three product marine dispenser,#1 and #2 diesel bulk transfer (truck loading)hose connection,and multiple above ground distribution and transfer pipelines.The facility provides storage for virtually all the #2 diesel,#1 diesel,and unleaded gasoline received by the community. The fuel is used to generate power when required to augment the hydro electric plant,to provide for Pelican Seafoods in-house operations,as well as to dispense fuel to the fishing fleet and general public.All dispensing and bulk transfers are by gravity. The total gross shell capacity of the six in-service bulk storage/dispensing tanks is approximately 60,000 gallons of #2 diesel,40,000 gallons of #1 diesel and 20,000 gallons of unleaded gasoline.The tanks are approximately 50 years old but appear to be well maintained,with good paint except for some loose paint and rust along the bottom seams. The condition of the tank bottoms is suspect due to the age of the tanks but no thickness testing has been performed on them to date. Prior work performed by the State of Alaska Division of Energy (DOE)included a code evaluation of existing facilities and preparation of a database summarizing results.The existing facilities were reviewed and information in the database verified.The following is a summary of existing facility deficiencies observed: e Improper Secondary Containment (Diking)-Tanks (bottoms)are not within a proper liquid tight secondary containment system of adequate capacity as required by the Fire Code and EPA regulations. No Emergency Vents -None of the tanks have emergency vents,in violation of the Fire Code. No Security Fence Some tanks are currently accessible to the general public with no security fencing.This presents a hazard to the community as well as increasing the chance of a spill or fire due to vandalism and theft. Improper Piping and Valves -Existing piping systems consist of steel piping with a combination of welded and threaded joints.The threaded joints are particularly prone to leaking.Some valves are made of bronze,in violation of the Fire Code. Gravity Dispensing -Code requires that all fuel dispensing be by pump. Above-Ground Dispensing Tank Capacity -State Fire Marshall requirements stipulate that the maximum size of an above ground dispensing tank is 12,000 gallons. Dispensing From Above-Ground Tanks Without Protective Systems -State Fire Marshall requirements stipulate protective devices and piping systems to prevent a gravity discharge of fuel in the event of a failure of the dispenser or piping.No protective devices are installed. Improper Site Location -The existing bulk tanks do not meet Fire Code minimum separation distance requirements from adjacent public ways and property lines for unprotected tanks. Improper Foundation -Horizontal tank resting directly on ground with no foundation. The combination of deficiencies poses a significant threat to public safety and the environment. The primary electric power source for Pelican is a hydroelectric generation plant.This facility was originally constructed in 1941.Some portions of the system are still original construction while others have been replaced.The facility has a minimal storage dam and operates essentially as a run of the river system.It consists of the following components: Low height rock-filled timber crib dam that was rebuilt between 1996 and 2002 and is in good condition. Concrete intake structure that is in marginal condition. Timber construction open flume 727'in length that is in poor condition.The flume is installed on timber trestles.The upper portion of the trestle is in poor condition but the lower portion is in fair condition. Timber surge tank with screens in marginal condition. Wood stave penstock 330”in length that is in poor condition. Powerhouse building that was rebuilt in 1982 and is in good condition. A pair of turbine generators of SSOkW and 100kW capacity. Project Overview The Rural Power System Upgrade project will consist of:1)installing a new modular diesel power plant;2)installing new instrumentation and controls in the existing hydro powerhouse;3)installing an overhead fiber optic communication cable between the modular power plant and hydro powerhouse for remote monitoring and control of the hydroelectric generators and;4)a few minor distribution upgrades within the community. The primary purpose of the proposed upgrade to the hydroelectric generator controls is to improve the coordination between the new diesel plant and the existing hydro plant and to automate some of the functions.The net result of the improved coordination should be better utilization of available hydro power and a resultant reduction in diesel consumption. Diesel generation will still be required when hydro power is not available and also to meet peak demands during periods of reduced hydro output.Careful sizing and selection of new diesel-electric generators in conjunction with the installation of fully automatic paralleling switchgear and distribution improvements will result in optimum community power generation fuel efficiency. The proposed new power plant will include three new generators,programmable automatic paralleling switchgear,remote radiators with variable speed control,a fire suppression system,critical grade exhaust silencers and an automatic fill day tank as well as all required engine coolant piping and ventilation equipment.It will come pre- assembled in a 15'-8"W x 41'-8"L modular skid-mounted building. The existing turbine governor controls will be upgraded to allow the hydroelectric system to be integrated into the new diesel plant controls.This will allow the new diesel generators and the existing hydro generator to be used in the most efficient manner to get maximum benefit from the available hydro resources without jeopardizing the electrical power supply.Upgrades to the governor controls will consist of the following: e Installation of a new remote terminal unit (RTU)inside the hydro plant powerhouse will operate as remote input/output (I/O)for the diesel plant PLC.The RTU will be provided with provisions for local control in the event the main PLC is down or the communication link between the diesel plant and the hydro plant is lost.In addition to generator monitoring and governor control the RTU will also monitor a new level indicator on the surge tank,hydro generator breaker position,and other inputs that may be required. e Installation of a new power meter on the existing hydro generator in the existing switchgear.The new power meter will monitor load parameters on the hydro generator such as three-phase amps,three-phase voltage,watts,vars,and power factor,and provide that information to the RTU. e Modification of the existing switchgear.The existing switchgear will be modified as required to provide remote open and close of both existing generator breakers from the new RTU. e Installation of fiber optic cable.Communication between the diesel plant PLC and the hydro plant RTU will be provided by a new single-mode fiber optic link. e Installation of a continuous level indicator on the surge tank.To maximize utilization of the hydro generator,knowledge of the water level in the surge tank is required. e Replacement of the hydro turbine governor.The existing governor controller is a mechanical governor,Woodward model UG-8 8520-383,UG-HT size 2.The existing governor controller is not upgradeable so the existing governor will be replaced with a new electronic governor control system. Modifications of the existing 100 kW induction generator turbine valve will be made to incorporate control of the existing induction generator in the overall generation system. The Bulk Fuel Upgrade (BFU)project will consist of replacing the existing tank farm, pipelines and associated fuel handling equipment in their entirety.In addition,new intermediate tanks will be installed at the modular power plant and at the existing Pelican Seafoods powerhouse.A new day tank will also be installed at the school.The proposed bulk fuel tank farm will provide storage for virtually all of the diesel fuel and gasoline received by Pelican.The new tank farm will include one 20,000 gallon bulk storage tank for #1 diesel,two each 20,000 gallon bulk storage tanks for #2 diesel,and one 12,000 gallon gasoline dispensing tank.A security fence will enclose the tanks. The concept design for the new facility has been prepared to meet current code and regulatory requirements which include: e The 2003 Edition of the International Fire Code,including State of Alaska Amendments . e The 2002 Edition of the National Electrical Code e 40 CFR,Part 112.1-12,U.S.Environmental Protection Agency Spill Prevention Requirements e 33 CER,Part 154.30 &154.1030,U.S.Coast Guard Spill Prevention Requirements The design incorporates appropriate industry standards such as National Fire Protection Association (NFPA)and American Petroleum Institute (API)as well as proven methods and materials that have been used successfully on other rural bulk fuel facilities in similar locations and climates. The fuel dock renovation will include new marine fueling stations for #1 and #2 diesel fuel as well as an unleaded gasoline dispenser.The diesel fueling stations and gasoline dispenser will have separate custody transfer meters,hose reels,and nozzles for each product.The installation will also include a new three product marine header as well as fill/distribution pipelines for #1 diesel,#2 diesel,and gasoline.The pipelines will route beside the dock,then cross under the boardwalk and finally below grade within the Coho Way right-of-way up to the tank farm site. A truck loading area will be constructed along the boardwalk near the intersection with the fuel dock.This facility will be used only for filling the local fuel delivery truck and other portable tanks with #2 or #1 diesel.A custody transfer meter and hose stand will be installed within a small security enclosure.