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HomeMy WebLinkAboutSE IRP plan project March 10 20118. 9 1 1 Advisory Work Group Meeting Southeast Alaska Integrated Resource Plan Project March 10,2011 Juneau,Alaska .Introductions -All .Welcome comments by Jim Strandberg,AEA .Introduction of Team Members &Advisory Work Group Description of Southeast IRP Project -Strandberg .Role of Advisory Work Group -Strandberg .Comments by the Advisory Work Group Chairperson/Vice Chairperson .Communities and Utilities Included in the IRP -Rollins The Role of Biomass -Plentovich .Load Forecasts (Including Discussion on Electric Heat)-Rollins 0.Confidentiality Issues Rollins 1.Technical Conference -Strandberg 12.Next Advisory Work Group Meeting -Strandberg 13.Advisory Work Group Comments 14.Public Comments 1 5.Other Issues MEET ME CONFERENCE CALL IS SET UP AS REQUESTED: WHEN:Thursday,March 10,2011 from 1:00 pm to 3:00 pm CALL IN NUMBER:1-800-315-6338 CODE:3069 # As the originator,you will dial the 800 number above,then Code 3069 1 #to open the line. If your participants try to get on before you open up the line,they will hear hold music. Advisory Workgroup Meeting Minutes 1:00 -3:00 March 10,2011 Juneau,Alaska Advisory Work Group Member Rick Harris,Sealaska,Chair IRP Work Group (phone) Robert Venables,Southeast Conference,Acting Chae,March 10,2011DaveCarlson,SEAPA : The Honorable Henrich Kadake,City of Kake Mayor.Mark Adams for Mike Kline,KPU (phone)Steve Henson,WMLP Merrill Sanford,Juneau '=<iy Paul Bryant,MPL ey,2A Tim McLeod,AEL&P f oe - Peter Bibb for Jodi Mitchell,IPEC Bob Grimm,AP&T (phone) Barbara Stanley,USFS :Dan Lesh,SEACC (part timeby Phone)_Dick Levitt,GustavusRussellDick,Huna Totem CorporationBillCorbus,AEL&P retired”Paul Southland,ACE Coalition : The Honorable Jeremy Maxand,Wrangell Borough MayorJoeNelson,Petersburg©w - Project Team Members"Finim1 Strandberg,AEA "aDevanyPlentovich,AEA ;_Kevin Harper,Black &Veatch (phone)”Myron Rollins,Black &Veatch Paul Berkshire,HDR (phone)Atlin Mire,Black &Veatch (phone)Eric Wolfe,SEAPA- Other Stakeholder Attendees:Jan Trigg,Coeur AlaskaJohnHarrington,KG Borough Patricia Phillips,SEC Shelly Wright,SEC,Executive Director Paulette Jackson,City of Kake Maxine Thompson,SEC Peter Naoroz,Kootznoowoo,Inc. Charles Wilson,MPL FE SE IRP Advisory Work Group Meeting Minutes -3/10/2011 Page 1 Walter Moa,Roanan Corp. Gail Moa,Wife John Sandor,ACE Coalition Floyd M.Kookesh,Kootznoowoo,Inc. Weston Eiler,Sen.Stedman's Office i,Boy,1.Introductions -All Mw |Everyonein the room and on the Phone introduiced themselves.b.Individualsin the room filled out a sign-in sheet with contact information.c.Black &Veatch was identified as the contractor to AEA for the Southeast work on the contract. 2.Welcome Comments-Jim Strandberg<a.Advisory Work Group meetings will be available t6 the public.MeetingnoteswillalsobepostedontheAEAwebsite.*Minutes will be taken byArlinMireofBlack&Veatch.athe website will also have links to otherusefulinformation. b.Jim Strandberg:The Southeast needs to get together to address its powersupplyandenergyneeds.It's important to understand the IRP process andthepastsuccessesinordertoproperlymanageit.Mr.Strandberg wants togetthegroupuptospeedonthefundamentalsoftheprocessandwhatwill be expected of the group over the next year. 3.Introduction of Team Members &Advisory Work Group are Jim Strandberg |introduced key individuals.a Jim Strandberg indicated that Rick Harris,Executive Vice President,,Sealaska Corporation,has been selected as the chair of the Advisory WorkGroup.Mr.Strandberg'asked if there were any objections and noobjectionswerevoiced.Rick Harris said that since he was on the phone 7 and not in the room,Robert Venables should act as chair to move the>meeting along."4,Destin of Southeast IRP Project-Jim StrandbergieThisprojectisfundedbytheStateofAlaska,butis being accomplished by_the people of SE Alaska,for the people of SE Alaska.While thisisentitleda"regional planning process”,it is also a "call to arms”for the people of SE Alaska,to address two key issues facing them,the plight of remote communities that have their energy systems based on diesel fuel, their very high costs of energy and utilities,and the issue of cross over electric heating in more central communities that have the benefit of hydro electric based power.So you will see this work must engage in real current issues as well as identifying future capital projects. end SE IRP Advisory Work Group Meeting Minutes -3/10/2011 Page 2 b.AEA will work with its SE partners to develop a comprehensive list of projects ordered by economics and feasibility.It is a regional plan where the primary output is an economically ordered list of generation and transmission capital and energy projects that include demand-side projects as well as smart grid projects within distribution systems.It will look at electric and utility systems in the region as well as space heating for businesses,residences,communities,and transportation.The scope willincludeallofthosemajorenergycomponentsforpeoplewholiveintheSoutheastandwillbefocusedonthecostofenergy.”c.This list will include capital projects and capital budgets for programs forthermalenvelopeandlightingiimprovementsiintheregion.So we will beconsideringboththesupplyanddeliveryofenergy,bus also the way weconsumeenergyinthebuiltenvironment.”4 A bog d.The IRP covers the development of energy proj ects including renewable,geothermal,transmission,distribution,and others to ensure long-termenergysecurityandtheavailabilityofaffordableenergy.e.AEA will have the informationalil website Page updated throughout theproject.:eesf.$500,000 has been appropriated tto AEA for this project with $250,000 ofadditionalfundsmadeavailablefromAEA's planning funds.Currently,thereis a $446,700 contract with Black &Veatch.Itis expected thatnegotiationswillbe.made for additional amendments with the consultant,Black &Veatch.:, g.AEA will configure this work to give equal emphasis to remote communities as well as the more urban interconnected hydro based towns."AIL SE communities are seeing major increases in the cost of heating.Thereis an increasing concem over volatility of prices and external factorsthataffect.everyone in the region.A major portion of the work will befocusedonlesseningtheeconomicimpactsofthatvolatilityandlessen dependence on high priced oil.For communities that have low cost hydroenergy,thereis a concern about the rapidly growing loads from >,conversion to electric space heating."5.The IRP will also address theissue of Public/Private Partnerships and will""specifically address the AK-BC transmission line for exporting and importingpowertotheSoutheast.We plan to carefully review the situation in the BCelectricalgridwhichisevolving,and work with project proponents to understandtheprivatesector's business case for export and possibly import of energy,and how this will benefit the SE public. 6.Role of Advisory Work Group -Jim Strandberg a.The Advisory Work Group team has been put together with folks from various backgrounds to help move the project forward,and to provide advice to AEA on how it is accomplishing its work.AEA regards the rr SE IRP Advisory Work Group Meeting Minutes -3/10/2011 Page 3 work of this group as very important to make sure we get it right,in accomplishing the work. b.Devany Plentovich is an AEA program manager whose specialty is biomass.She is primarily engaged in conversion of wood products into energy. c.Eric Wolfeis a part of SEAPA andis an Jmportant part in creating the IRPfortheSEAPAnetwork. d.Kevin Harper of Black &Veatchis the project director and Myron Rollinsistheprojectmanagerfortheconsultinggroup.:e.Given the way funds were directed to from the legislature,AEA has asked representatives from SEAPA to join us and work with us on the project. $250,000 of the funds were allocated to the SEAPA portion of the IRP inthelegislativelanguage.The language requires specific IRP- recommendations for SEAPA's system.AEA plans to work closely withSEAPAinthisregard.f.Mr.Dave Carlson of SEAPA has been involved iin southeast energy issuesformanyyears..pee . "e g.The Advisory Group will be asked to review specific documents,providegeneralcommentsonissues,make sure theissues are pertinent,and ensurethatAEAisproperlyaddressingvvarioussubjectswithoutgoingoffintotheweeds. h.The project is a one year project,including 10 advisory group meetings,6ofwhichareplannedtobefacetoface.7.Comments by the Advisory Work Group Chairperson/Vice Chairpersona.Rick Harris was pleased that the IRPis looking at a full suite of options ;,-»including biomass,renewables,and transmission projects.RickA»mentioned thatin one area Alaska has converted from heating oil to °biomass and heating costs have dropped significantly as a result.8.Communities and Utilities Includedin the IRP-Myron Rollinsa.Here are the communities to be consideredin the IRP.They will be used to develop load forecast and will be grouped into the utilities. "i.Angoon ii.Coffman Cove "dil,Craig iv..Edna Bay v.Elfin Cove vi.Excursion Inlet vii.Greens Creek viii.Gustavus ix.Haines x.Hollis rrr| SE IRP Advisory Work Group Meeting Minutes -3/10/2011 Page 4 XXi. XXil. XXiil. XXIV. XXV. XXVi. XXVIL. XXVIii. XXIX. XXX, XXXi. XXXIi. XXXIil. XXXIV. XXXV. XXXVI. i.Hoonah i.Hydaburg li.Hyder .Juneau .Kake .Kasaan i.Ketchikan i.Klawock .Klukwan/Chilkat ValleyKupreanof Metlakatla Meyers Chuck Naukiti Pelican Petersburg Point Baker Port Protection Port Alexander ." Saxman Sitka Skagway Thorne Bay Tenakee SpringsWhalePass*Wrangell” Yakutat 49.Role of Biomass --Devany Plentovicha.Biomass has been proven fort heating and it is a good technology solution"for villages.»," b.Thereare somekey considerations i.Must have a sustainable resource.It must be harvestablein a cost- effective manner.Having plenty of wood does not guarantee thatitiscost-effective to get it to the boiler.Might need to join with .the forest industry to use mill waste.Itis rare to harvest just for "®s,¢biomass.Se ii,Must have a place to use the heat.Usually involves community""__scale projects.Can a distribution system be installed?Canbuildingsbepipedtogether?Do you have the heating load? iii.Must have a community champion to push things forward.Also_ needs large community support.In one example,a school's maintenance manager partnered with the state forestry group and began harvesting salvage logs.The community was behind it and they had it up and running within 3 years. eee ee SE IRP Advisory Work Group Meeting Minutes -3/10/2011 Page 5 10.Load Forecasts (Including Discussion on Electric Heat)--Myron Rollins a.Load forecasts,to be completed by Black &Veatch,will be a tough job. b.It will be a different load forecast method than used elsewhere.Requests have been sent out for historical cost of power and load data from the utilities.Black &Veatch will discuss issues with the persons in charge of load forecasting and use informed judgment to create a rational forecast.The resulting forecasts will include conversion toelectric heat or otherprojectsandtheresultscanvarygreatlydependingontheabilityto provide low cost hydro energy.A draft will be prepared and sent to theutilities. 11.Confidentiality Issues -Myron Rollins S we ya.Myron noted that confidentiality iissues need to be considered iin the studyandtheAdvisoryWorkGroupmeetingswhendiscussingpotentialhydro projects.One issue could happen if you put a project on the table and planondoingit,but not immediately,someone can go out and getapreliminarypermitandtake.it out from underyou.b.He noted that we will write a detailed,documented report that will containdetailedanalysisonprojects,costs,and feasibility iissues.12.Technical Conference-JimStrandberg _a.To be planned for 2 days on April 21 and 22.Day 1 is Education 101 andinvolvesspeakersfromthesoutheastandotherin-state experts.The evening of the first day will beatown hall meeting to developissues fromthestakeholders..b.Also focused on understanding financing of large scale hydro,loadoeforecasts,and otherissues such as smart grid.BNNext Advisory Work Group Meeting -Jim Strandbergay"a.To be held the second day of the technical conference since many people2.will be at one place. .After this meeting,Black &Veatch will develop the list ofissues toaddressiinthestudy.=The intention is to have all of the Advisory Work Group meetings inSSoutheastAlaska,but they will bein various areas and accessible by webSeandphone.”14.Advisory 'Work Group Commentsa.Barbara Stanley,Energy Coordinator for the USFS indicated that the Forest Service is concerned about the local energy situation and is looking for ways to coordinate efforts.The local Forest Service is aware of the perceived barriers and is bringing those issues forward in Washington. Jim Strandberg cited the example of Transition Framework as an example of trying to achieve joint positive action with the Forest Service.The (en SE IRP Advisory Work Group Meeting Minutes -3/10/2011 Page 6 Forest Service will make Mr.Larry Dunham available to the project as a member of the Advisory Work Group.Mr.Dunham has considerable experience as Engineering Staff Officer with over 30 years in southeast with the USFS. b.Dick Levitt emphasized that the region should get going on the things that can be done now and plan for the¢longrun. use biomass. d.Rick Harris supported the full suite©of options being evaluated,andreferredtotheneedtohelptheForestServiceprioritizethepending |27FERCpermitapplicationsthatarebeforetheagency,e.Bill Corbus expressed that the IRP process was a good pprocess forloweringenergycostsintheSoutheast,which would help reverse thedeclineinpopulation. f.Dave Carlson expressed concern about rapidly iincreasing loads fromconversiontoelectricspaceheating”He also expressed that a space heating solution between hydro and oil wasneeded.'Finally he indicatedthatfinancingwasthekeyiissue,15.Public Commentsa.Gail Moa asked flow tlthe erode plans to educate the public,specificallyyoungstudents.Gail further asked what the group was doing to educatepeopleonmanagingconsumption,using energy intelligently,and teachingyoung,intelligent children so that they can go "pester”their parents toexerciseproperconsumption. _<©'.Patricia Phillips noted that she was asked to develop interruptible rates,____but was unsure how to do that properly.She noted that in some parts of'the Southeast people were taking advantage of energy audits and rebate.programs to lower consumptions,but energy auditors had never been toPelican..°oy »,¢.Paulette J we noted that they pay 69 cents per kWh.She mentioned »»,that her children understand that there can only be one light bulb on in the:house at any given time."od.Shelly Wrightthanked the group for their efforts and noted that over theJast6months,the southeast IRP has been a topic of conversation and alarge.amount of people are looking to the group for guidancee.John Sandor said that the group should not fall into a trap that involves deferring what can be done now for the sake of the results of the IRP.He suggested that there may be funding out there for large capital projects on the tail of Susitna and there may be some appropriations for Southeast projects and we may need to name a list of projects that already have FERC licenses that can get appropriated this year. SE IRP Advisory Work Group Meeting Minutes -3/10/2011 Page 7 f.At the request of Jim Strandberg,The group was given a SEC-produced list of projects that has region-wide support and could be presented to the legislature during this session for funding.Robert Venables provided this list that that earlier been presented to the legislature by the Southeast Conference.That list included the following projects. e Blue Lake Hydro e Kake to Petersburg Intertie ”%,om e Metlakatla to Ketchikan Intertic |4eReynoldsCreekHydro)e Thayer Creek Hydro e Tyee Third TurbineeWhitmanLakeHydroTheseprojectsareallinneed of funding and have wide publicsupport.Some of the proj ects also have their FERC license. ae ii.Discussion continued that Blue Lake,Whitman Lake,ReynoldsCreek,Thayer Creek,Petersburg Intertie,and Ketchikan Intertie already have (or are very close to having)their FERC licenses. Thayer Creek is exempt from FERC licensing requirements. Comments were made that the FERC licensing process is very exhaustive and that projects which had obtained their FERC license should be considered very favorably for financing and_.development.'It was noted that the Tyee Third Turbine did not>have a FERC license,although the FERC license amendmentwouldbeeasytoobtainsincetheprojectisonlyaddingaturbinetoanexistingbay.iii,Rick Harris mentioned that the Roadless Rule might affect Blue and.Whitman Lake and asked for insight.Barbara Stanley indicated that the recent court decisions were being looked at by the Forest Service to determine if those projects would be affected. Barbara Stanley recommended that the group continue to push for »..the development of those two projects. "<.-iv.Paul Southland suggested that the AK-BC transmission intertie beeeaddedtothelist.The ensuing discussion indicated that the AK-BC "”intertie project was not nearly as developed as the other projects on the list and it was decided to not include it.Mr.Strandberg indicated that AEA was working on a contract amendment that would address this project. v.A motion was made by Merrill Sanford that a resolution be adopted that the above list of project except for the Tyee Third SE IRP Advisory Work Group Meeting Minutes -3/10/2011 Page 8 Turbine be presented through AEA to the legislature for funding. The motion was seconded by Mayor Henrich Kadake and passed unanimously by the Advisory Work Group.The Draft Resolution is attached. vi.Jim Strandberg thanked the group for this resolution,and would take the matter under advisement.He commented,that,inparticular,hydro projects that had secured a FERC license forconstruction,and undergone a significant due diligence withrespecttoprojectneedandrelevancy,and the AEA would considerthisandhowtotreatlicensedprojectsasitpursuedtheIRPprocess.aN s fs Bes &"ee Meeting Adjourned at 3:00 pm | SE IRP Advisory Work Group Meeting Minutes -3/10/2011 Page 9 Advisory Workgroup Meeting Minutes 1:00 -3:00 March 10,2011 Juneau,Alaska Advisory Work Group Member Rick Harris,Sealaska,Chair IRP Work Group (phone) Robert Venables,Southeast Conference,Acting Chair,March 10,2011 Dave Carlson,SEAPA The Honorable Henrich Kakade,City of Kake Mayor Mark Adams for Mike Kline,KPU (phone) Steve Henson,WMLP Merrill Sanford,Juneau Paul Bryant,MPL Tim McLeod,AEL&P Peter Bibb for Jodi Mitchell,IPEC Bob Grimm,AP&T (phone) Barbara Stanley,USFS Dan Lesh,SEACC (part time by phone) Dick Levitt,Gustavus Russell Dick,Huna Totem Corporation Bill Corbus,AEL&P retired Paul Southland,ACE Coalition The Honorable Jeremy Maxand,Wrangell Borough Mayor Joe Nelson,Petersburg Project Team Members Jim Strandberg,AEA Devany Plentovich,AEA Kevin Harper,Black &Veatch (phone) Myron Rollins,Black &Veatch Paul Berkshire,HDR (phone) Arlin Mire,Black &Veatch (phone) Eric Wolfe,SEAPA Other Stakeholder Attendees: Jan Trigg,Coeur Alaska John Harrington,KG Borough Patricia Phillips,SEC Shelly Wright,SEC,Executive Director Paulette Jackson,City of Kake Maxine Thompson,SEC Peter Naoroz,Kootznoowoo,Inc. Charles Wilson,MPL | SE IRP Advisory Work Group Meeting Minutes -3/10/2011 Page 1 Walter Moa,Roanan Corp. Gail Moa,Wife John Sandor,ACE Coalition Floyd M.Kookesh,Kootznoowoo,Inc. Weston Eiler,Sen.Stedman's Office 1.Introductions -All a.Everyone in the room and on the phone introduced themselves. b.Individuals in the room filled out a sign-in sheet with contact information. c.Black &Veatch was identified as the contractor to AEA for the Southeast Integrated Resource Plan (IRP)with HDR as a subcontractor for the hydro work on the contract. 2.Welcome Comments -Jim Strandberg a.Advisory Work Group meetings will be available to the public.Meeting notes will also be posted on the AEA website.Minutes will be taken by Arlin Mire of Black &Veatch.The website will also have links to other useful information. b.Jim Strandberg:The Southeast needs to get together to address its power supply and energy needs.It's important to understand the IRP process and the past successes in order to properly manage it.Mr.Strandberg wants to get the group up to speed on the fundamentals of the process and what will be expected of the group over the next year. 3.Introduction of Team Members &Advisory Work Group a.Jim Strandberg introduced key individuals. b.Jim Strandberg indicated that Rick Harris,Executive Vice President, Sealaska Corporation,has been selected as the chair of the Advisory Work Group.Mr.Strandberg asked if there were any objections and no objections were voiced.Rick Harris said that since he was on the phone and not in the room,Robert Venables should act as chair to move the meeting along. 4.Description of Southeast IRP Project -Jim Strandberg a.This project is funded by the State of Alaska,but is being accomplished by the people of SE Alaska,for the people of SE Alaska.While this is entitled a "regional planning process”,it is also a "call to arms”for the people of SE Alaska,to address two key issues facing them,the plight of remote communities that have their energy systems based on diesel fuel, their very high costs of energy and utilities,and the issue of cross over electric heating in more central communities that have the benefit of hydro electric based power.So you will see this work must engage in real current issues as well as identifying future capital projects. Pf SE IRP Advisory Work Group Meeting Minutes -3/10/2011 Page 2 b.AEA will work with its SE partners to develop a comprehensive list of projects ordered by economics and feasibility.It is a regional plan where the primary output is an economically ordered list of generation and transmission capital and energy projects that include demand-side projects as well as smart grid projects within distribution systems.It will look at electric and utility systems in the region as well as space heating for businesses,residences,communities,and transportation.The scope will include all of those major energy components for people who live in the Southeast and will be focused on the cost of energy. c.This list will include capital projects and capital budgets for programs for thermal envelope and lighting improvements in the region.So we will be considering both the supply and delivery of energy,but also the way we consume energy in the built environment. d.The IRP covers the development of energy projects including renewable, geothermal,transmission,distribution,and others to ensure long-term energy security and the availability of affordable energy. e.AEA will have the informational website page updated throughout the project. f.$500,000 has been appropriated to AEA for this project with $250,000 of additional funds made available from AEA's planning funds.Currently, there is a $446,700 contract with Black &Veatch.It is expected that negotiations will be made for additional amendments with the consultant, Black &Veatch. g.AEA will configure this work to give equal emphasis to remote communities as well as the more urban interconnected hydro based towns. All SE communities are seeing major increases in the cost of heating. There is an increasing concern over volatility of prices and external factors that affect everyone in the region.A major portion of the work will be focused on lessening the economic impacts of that volatility and lessen dependence on high priced oil.For communities that have low cost hydro energy,there is a concern about the rapidly growing loads from conversion to electric space heating. 5.The IRP will also address the issue of Public/Private Partnerships and will specifically address the AK-BC transmission line for exporting and importing power to the Southeast.We plan to carefully review the situation in the BC electrical grid which is evolving,and work with project proponents to understand the private sector's business case for export and possibly import of energy,and how this will benefit the SE public. 6.Role of Advisory Work Group -Jim Strandberg a.The Advisory Work Group team has been put together with folks from various backgrounds to help move the project forward,and to provide advice to AEA on how it is accomplishing its work.AEA regards the eo SE IRP Advisory Work Group Meeting Minutes -3/10/2011 Page 3 work of this group as very important to make sure we get it right,in accomplishing the work. b.Devany Plentovich is an AEA program manager whose specialty is biomass.She is primarily engaged in conversion of wood products into energy. c..Eric Wolfe is a part of SEAPA and is an important part in creating the IRP for the SEAPA network. d.Kevin Harper of Black &Veatch is the project director and Myron Rollins is the project manager for the consulting group. e.Given the way funds were directed to from the legislature,AEA has asked representatives from SEAPA to join us and work with us on the project. $250,000 of the funds were allocated to the SEAPA portion of the IRP in the legislative language.The language requires specific IRP recommendations for SEAPA's system.AEA plans to work closely with SEAPA in this regard. f.Mr.Dave Carlson of SEAPA has been involved in southeast energy issues for many years.. g.The Advisory Group will be asked to review specific documents,provide general comments on issues,make sure the issues are pertinent,and ensure that AEA is properly addressing various subjects without going off into the weeds. h.The project is a one year project,including 10 advisory group meetings,6 of which are planned to be face to face. 7.Comments by the Advisory Work Group Chairperson/Vice Chairperson a.Rick Harris was pleased that the IRP is looking at a full suite of options including biomass,renewables,and transmission projects.Rick mentioned that in one area Alaska has converted from heating oil to biomass and heating costs have dropped significantly as a result. 8.Communities and Utilities Included in the IRP -Myron Rollins a.Here are the communities to be considered in the IRP.They will be used to develop load forecast and will be grouped into the utilities. i.Angoon ii.Coffman Cove iii.Craig iv.Edna Bay v.Elfin Cove vi.Excursion Inlet vii.Greens Creek viii.Gustavus ix.Haines x.Hollis (a SE IRP Advisory Work Group Meeting Minutes -3/10/2011 Page 4 Xi. Xii. Xill. XIV. XV. XVi. XVIi. XViii. XiX. XX. XXi. XXii. XXIII. XXIV. XXV. XXVi. XXVII. XXVIil. XXIX. XXX. XXXi. XXXil. XXXili. XXXIV. XXXV. XXXVI. Hoonah Hydaburg Hyder Juneau Kake Kasaan Ketchikan Klawock Klukwan/Chilkat Valley Kupreanof Metlakatla Meyers Chuck Naukiti Pelican Petersburg Point Baker Port Protection Port Alexander Saxman Sitka Skagway Thorne Bay Tenakee Springs Whale Pass Wrangell Yakutat 9.Role of Biomass -Devany Plentovich a.Biomass has been proven for heating and it is a good technology solution for villages. b.There are some key considerations 1. ii. iil. SE IRP Advisory Work Group Meeting Minutes -3/10/2011 Must have a sustainable resource.It must be harvestable in a cost- effective manner.Having plenty of wood does not guarantee that it is cost-effective to get it to the boiler.Might need to join with the forest industry to use mill waste.It is rare to harvest just for biomass. Must have a place to use the heat.Usually involves community scale projects.Can a distribution system be installed?Can buildings be piped together?Do you have the heating load? Must have a community champion to push things forward.Also needs large community support.In one example,a school's maintenance manager partnered with the state forestry group and began harvesting salvage logs.The community was behind it and they had it up and running within 3 years. Page 5 10.Load Forecasts (Including Discussion on Electric Heat)--Myron Rollins a.Load forecasts,to be completed by Black &Veatch,will be a tough job. b.It will be a different load forecast method than used elsewhere.Requests have been sent out for historical cost of power and load data from the utilities.Black &Veatch will discuss issues with the persons in charge of load forecasting and use informed judgment to create a rational forecast. The resulting forecasts will include conversion to electric heat or other projects and the results can vary greatly depending on the ability to provide low cost hydro energy.A draft will be prepared and sent to the utilities. 11.Confidentiality Issues -Myron Rollins a.Myron noted that confidentiality issues need to be considered in the study and the Advisory Work Group meetings when discussing potential hydro projects.One issue could happen if you put a project on the table and plan on doing it,but not immediately,someone can go out and get a preliminary permit and take it out from under you. b.He noted that we will write a detailed,documented report that will contain detailed analysis on projects,costs,and feasibility issues. 12.Technical Conference -Jim Strandberg a.To be planned for 2 days on April 21 and 22.Day 1 is Education 101 and involves speakers from the southeast and other in-state experts.The evening of the first day will be a town hall meeting to develop issues from the stakeholders. b.Also focused on understanding financing of large scale hydro,load forecasts,and other issues such as smart grid. 13.Next Advisory Work Group Meeting -Jim Strandberg a.To be held the second day of the technical conference since many people will be at one place. b.After this meeting,Black &Veatch will develop the list of issues to address in the study. c.The intention is to have all of the Advisory Work Group meetings in Southeast Alaska,but they will be in various areas and accessible by web and phone. 14.Advisory Work Group Comments a.Barbara Stanley,Energy Coordinator for the USFS indicated that the Forest Service is concerned about the local energy situation and is looking for ways to coordinate efforts.The local Forest Service is aware of the perceived barriers and is bringing those issues forward in Washington. Jim Strandberg cited the example of Transition Framework as an example of trying to achieve joint positive action with the Forest Service.The SE IRP Advisory Work Group Meeting Minutes -3/10/2011 Page 6 Forest Service will make Mr.Larry Dunham available to the project as a member of the Advisory Work Group.Mr.Dunham has considerable experience as Engineering Staff Officer with over 30 years in southeast with the USFS. b.Dick Levitt emphasized that the region should get going on the things that can be done now and plan for the long run. c.Mayor Henrich Kadake emphasized the need to get off of fossil fuel and use biomass. d.Rick Harris supported the full suite of options being evaluated,and referred to the need to help the Forest Service prioritize the pending 27 FERC permit applications that are before the agency. e.Bill Corbus expressed that the IRP process was a good process for lowering energy costs in the Southeast,which would help reverse the decline in population. f.Dave Carlson expressed concern about rapidly increasing loads from conversion to electric space heating.He also expressed that a space heating solution between hydro and oil was needed.Finally he indicated that financing was the key issue. 15.Public Comments a.Gail Moa asked how the group plans to educate the public,specifically young students.Gail further asked what the group was doing to educate people on managing consumption,using energy intelligently,and teaching young,intelligent children so that they can go "pester”their parents to exercise proper consumption. b.Patricia Phillips noted that she was asked to develop interruptible rates, but was unsure how to do that properly.She noted that in some parts of the Southeast people were taking advantage of energy audits and rebate programs to lower consumptions,but energy auditors had never been to Pelican.. c.Paulette Jackson noted that they pay 69 cents per kWh.She mentioned that her children understand that there can only be one light bulb on in the house at any given time. d.Shelly Wright thanked the group for their efforts and noted that over the last 6 months,the southeast IRP has been a topic of conversation and a large amount of people are looking to the group for guidance e.John Sandor said that the group should not fall into a trap that involves deferring what can be done now for the sake of the results of the IRP.He suggested that there may be funding out there for large capital projects on the tail of Susitna and there may be some appropriations for Southeast projects and we may need to name a list of projects that already have FERC licenses that can get appropriated this year. I SE IRP Advisory Work Group Meeting Minutes -3/10/2011 Page 7 f.At the request of Jim Strandberg,The group was given a SEC-produced list of projects that has region-wide support and could be presented to the legislature during this session for funding.Robert Venables provided this list that that earlier been presented to the legislature by the Southeast Conference.That list included the following projects. e Blue Lake Hydro e Kake to Petersburg Intertie e Metlakatla to Ketchikan Intertie e Reynolds Creek Hydro e Thayer Creek Hydro e Tyee Third Turbine e Whitman Lake Hydro These projects are all in need of funding and have wide public support.Some of the projects also have their FERC license. ii.Discussion continued that Blue Lake,Whitman Lake,Reynolds Creek,Thayer Creek,Petersburg Intertie,and Ketchikan Intertie already have (or are very close to having)their FERC licenses. Thayer Creek is exempt from FERC licensing requirements. Comments were made that the FERC licensing process is very exhaustive and that projects which had obtained their FERC license should be considered very favorably for financing and development.It was noted that the Tyee Third Turbine did not have a FERC license,although the FERC license amendment would be easy to obtain since the project is only adding a turbine to an existing bay. iii.Rick Harris mentioned that the Roadless Rule might affect Blue and Whitman Lake and asked for insight.Barbara Stanley indicated that the recent court decisions were being looked at by the Forest Service to determine if those projects would be affected. Barbara Stanley recommended that the group continue to push for the development of those two projects. iv.Paul Southland suggested that the AK-BC transmission intertie be added to the list.The ensuing discussion indicated that the AK-BC intertie project was not nearly as developed as the other projects on the list and it was decided to not include it.Mr.Strandberg indicated that AEA was working on a contract amendment that would address this project. v.A motion was made by Merrill Sanford that a resolution be adopted that the above list of project except for the Tyee Third FE SE IRP Advisory Work Group Meeting Minutes -3/10/2011 Page 8 Turbine be presented through AEA to the legislature for funding. The motion was seconded by Mayor Henrich Kadake and passed unanimously by the Advisory Work Group.The Draft Resolution is attached. vi.Jim Strandberg thanked the group for this resolution,and would take the matter under advisement.He commented,that,in particular,hydro projects that had secured a FERC license for construction,and undergonea significant due diligence with respect to project need and relevancy,and the AEA would consider this and how to treat licensed projects as it pursued the IRP process. Meeting Adjourned at 3:00 pm | SE IRP Advisory Work Group Meeting Minutes -3/10/2011 Page 9