HomeMy WebLinkAbout2019-06-26 AEA Agenda and docs
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REDUCING THE COST OF ENERGY IN ALASKA
Alaska Energy Authority
Board Meeting
Wednesday, June 26, 2019
10:00 a.m.
AGENDA
To participate via teleconference dial 1-888-585-9008
and when prompted, enter code 676-392-603#
1. CALL TO ORDER
2. ROLL CALL BOARD MEMBERS
3. ROLL CALL STAFF, PUBLIC
4. AGENDA APPROVAL
5. PUBLIC COMMENTS (3 minutes per person) see call in number above
6. PRIOR MINUTES – May 22, 2019
7. NEW BUSINESS
A. Resolution No. 2019-04 Appointment of Officer
8. EXECUTIVE SESSION – Discuss confidential matters related to:
A Bradley Lake
9. DIRECTOR COMMENTS
A Tuluksak
B Hiilangaay Trip Report
C Transco Briefing
D RSPU Regulation Changes & Summary
E Dashboard & Loan Report
F Next Regularly Scheduled AEA Board Meeting Wed. August 7, 2019
10. BOARD COMMENTS
11. ADJOURNMENT
ALASKA ENERGY AUTHORITY
RESOLUTION NO. 2019-04
RESOLUTION OF THE ALASKA ENERGY AUTHORITY RELATING
TO TIM SANDSTROM, DIRECTOR OF RURAL PROGRAMS
APPOINTMENT AS ASSISTANT SECRETARY OF THE AUTHORITY
WHEREAS, the By-laws of the Alaska Energy Authority (the “Authority”) provide that
the Executive Director of the Authority is the Secretary-Treasurer of the Authority, and set out the
duties and responsibilities of the Executive Director, Secretary, and the Treasurer of the Authority;
WHEREAS, the By-Laws of the Authority provide that the Board of Directors of the
Authority may by resolution give persons appropriate titles, including that of Deputy Director,
Assistant Secretary, or Assistant Secretary-Treasurer of the Authority;
WHEREAS, a person given an appropriate title by the Board of Directors may be assigned
by the Board all or part of the duties and responsibilities of the Executive Director or Secretary-
Treasurer of the Authority, or may be authorized by the Board to be delegated those duties and
responsibilities by the Executive Director, or may be required by the Board or the By-Laws,
Regulations or policies and procedures of the Authority to perform those duties and
responsibilities; and
WHEREAS, the Board of Directors has determined it is in the best interests of the
Authority, and desirable and proper, to appoint and give Mr. Sandstrom, Director of Rural
Programs the title of Assistant Secretary of the Authority, and be assigned certain duties, functions,
and responsibilities as may from time to time be delegated by the Executive Director, or as may
be required by the Board or the By-Laws, Regulations or policies and procedures of the Authority.
AEA Resolution No. 2019-04 Page 2 of 2
NOW, THEREFORE, BE IT RESOLVED BY THE ALASKA ENERGY
AUTHORITY AS FOLLOWS:
Section 1. Mr. Sandstrom, Director Rural Programs is appointed and given the title of
Assistant Secretary of the Authority
Section 2. As Assistant Secretary, Mr. Sandstrom shall perform any and all
enumerated duties of the Executive Director or Secretary as shall from time to time be delegated
by the Executive Director or as may be required by the Board or the By-Laws, Regulations or
policies and procedures of the Authority.
Section 3. Mr. Kirk Warren, Director, Railbelt Energy, having been previously
appointed and given the title of Assistant Secretary of the Authority by the Board, shall continue
to perform any and all duties enumerated of the Executive Director or Secretary as shall from time
to time be delegated by the Executive Director or as may be required by the Board or the By-Laws,
Regulations or policies and procedures of the Authority.
Section 4. From time to time, as may be required on a temporary basis, when the
Executive Director is unavailable, the Executive Director may designate any Assistant Secretary
or Assistant Secretary-Treasurer of the Authority as Acting Executive Director. The Acting
Executive Director shall have all the duties and powers of the Executive Director of the Authority
during the period the Executive Director is unavailable.
Section 5. This Resolution shall become effective immediately upon its passage and
approval.
DATED at Anchorage, Alaska, this 26th day of June, 2019.
Chair
ATTEST
[SEAL]
Secretary
813 West Northern Lights Boulevard, Anchorage, Alaska 99503 | P 907.771.3000 | Toll Free 888.300.8534 | F 907.771.3044 | WWW.AKENERGYAUTHORITY.ORG
REDUCING THE COST OF ENERGY IN ALASKA
Tuluksak Utility Management Improvement Project
In the fall of 2018, AEA initiated the Tuluksak Utility Management Improvement Project.
This project came in response to the Denali Commission’s denial of funding for new
infrastructure in the community. The goal of this two-year program is to build the
managerial and maintenance capacity of the utility, so they can help reach the full design
life of their infrastructure. However, the project has been met with limited success and
continued challenges.
Prior to AEA’s involvement, other agencies provided assistance to the community. The
federal Department of Energy’s Office of Indian Energy provided a contractor tasked with
training the new utility manager and clerk in reporting to AEA’s PCE program. Training
commenced in July of 2018, and the new manager took over in the fall. Even with the
assistance of DOE’s contractor, Tuluksak has not reported to PCE since September 2018.
The Division of Community and Regional Affair’s (DCRA) Local Government Specialist (LGS)
program has provided local government with onsite training and the opportunity for
classroom training. Between 2015 and 2019, the community did not take advantage of these
training opportunities, even at the frequent advisement of the LGS. The new manager and
utility clerk did attend a DCRA-sponsored bulk fuel management for electric utility in March
and the new utility clerk attended DCRA’s QuickBooks training in April.
The community has also accessed DCRA’s Bulk Fuel Loan program. In 2015, the community
had unpaid bulk fuel loans in excess of $554,000. In 2015, DCRA established a repayment
plan that requires a payment of $13,000 per month. The payments come directly from the
utility ($7,000) and AEA’s PCE program ($6,000). Annual Community Assistance Funds are
also assigned to the bulk fuel loan program for these delinquent loans (those funds are
approximately $32,000). However, the FY20 application for CAP was due on June 1, 2019
and it has not been received yet. The delinquent balance has been reduced to $370,000. A
fuel emergency in April led to the utility taking on an additional bulk fuel loan.
Since early 2019, AEA has provided onsite and remote technical assistance for both utility
management and maintenance. Whenever possible, AEA has tried to coordinate with other
agencies working in the community including DCRA and the Yukon-Kuskokwim Health
Corporation.
Since February, AEA personnel have traveled to the community three times (including an
expected trip the week of June 17) to provide technical assistance. AEA required the
community to sign a Waiver of Sovereign Immunity and a technical assistance agreement
to receive ongoing assistance. AEA has also had limited opportunity to meet with Tuluksak
utility personnel in Anchorage on an ad hoc basis.
AEA staff has been successful in training utility staff to accurately take meter readings, set
up customer ledgers, and bill customers. These are required for the utility to function
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813 West Northern Lights Boulevard, Anchorage, Alaska 99503 | P 907.771.3000 | Toll Free 888.300.8534 | F 907.771.3044 | WWW.AKENERGYAUTHORITY.ORG
financially and to receive the PCE reimbursement. AEA has provided updates to the
Tuluksak utility board and given training on best practices for how to oversee the workings
of the utility. AEA staff have provided training to power plant operators in daily operations
and maintenance procedures, inventory management, and bulk fuel management practices.
Utility staff have been able to achieve the tasks they have been trained on. However, AEA
has encountered challenges throughout the project. The utility manager left on long-term
leave in March and has not returned to work and the position has not been backfilled. The
clerk was trained and then left the utility in May with little notice. She has not responded to
requests from the utility to return utility property. The clerk position has been backfilled
and AEA staff will provide training during our expected trip this month.
The entire budget for the Tuluksak utility management improvement project is $190,000.
To date, approximately $24,000 has been spent including AEA personnel time, travel, and
supplies and materials for the utility.
813 West Northern Lights Boulevard, Anchorage, Alaska 99503 | P 907.771.3000 | Toll Free 888.300.8534 | F 907.771.3044 | WWW.AKENERGYAUTHORITY.ORG
REDUCING THE COST OF ENERGY IN ALASKA
AEA Assistance to Tuluksak as Reported to DCCED via the weekly reports:
January 24-30, 2017
Significant Activities
Tuluksak - Ramon Navaho Settlement Funds Received
Anchorage staff spoke with a consultant for the Tuluksak tribal government
regarding a payment of approximately $225,000 the Tribe received in December
2016 from Ramon Navaho Settlement (RNS) funds. The tribal council had previously
indicated that $100,000 of the settlement funds might be used to pay down its bulk
fuel loan balance of $325,000. The council has decided to use about $125,000 of the
RNS funds to pay past due IRS obligations, and to invest the remaining amount in a
new electric generator so they can add the school as a utility customer.
May 30 – June 5, 2017
Significant Activities
Tuluksak - Fuel Concerns for Tuluksak
The utility manager for Tuluksak contacted the bulk fuel loan program and
requested an application to purchase fuel this spring. The LGS learned the utility has
been running low on fuel and has been purchasing fuel from the local store when
possible. They would like to receive a spring fuel delivery as soon as possible.
August 22-28, 2017
Circuit Rider
Tuluksak: Contacted the local operator at the request of the utility’s consultant and
offered technical assistance and training.
September 5-11, 2017
Circuit Rider
Tuluksak: The utility requested help with determining the correct bell-housing
adapter to use to mate a replacement generator end to their existing engine.
September 12-18, 2017
Circuit Rider
Tuluksak: The utility’s engineer called and asked for assistance with locating a
specific OH transformer needed right away to complete a new line extension.
September 19-25, 2017
Circuit Rider
Tuluksak: Worked with a contractor on the status of the powerhouse condition.
Continue working with another contractor on availability of OH transformer for a
line extension.
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813 West Northern Lights Boulevard, Anchorage, Alaska 99503 | P 907.771.3000 | Toll Free 888.300.8534 | F 907.771.3044 | WWW.AKENERGYAUTHORITY.ORG
October 3-9, 2017
Circuit Rider
Tuluksak: An engineer representing the school requested assistance with
information the village’s power generation and distribution.
January 2-8, 2018
Circuit Rider
Tuluksak: The operator called requesting help locating replacement fuel filters.
January 16-22, 2018
Circuit Rider
Tuluksak: Community representative requested information on installing a
generator digital voltage regulator and diesel engine control unit.
February 6-12, 2018
Circuit Rider
Tuluksak: A professional engineer under contract with ANTHC called and asked for
information regarding the community’s powerhouse and bulk fuel infrastructure.
February 27-March 5, 2018
Significant Activities
Tuluksak - Power Plant Out of Fuel
The utility manager for Tuluksak informed bulk fuel loan program staff that the
electric utility ran out of fuel and the power plant is not running. The utility is
borrowing a week’s supply of fuel from the school. The power plant manager is
contacting a fuel supplier in Bethel and requesting a quote for fuel delivery via ice
road. An application for a bulk fuel loan has been sent to the utility.
March 6-12, 2018
Significant Activities
Tuluksak - Fuel Emergency and Bulk Fuel Loan Approval
The Tuluksak electric utility ran out of fuel on February 28 and had to borrow or
purchase an emergency supply of fuel from the local school. DCRA approved a bulk
fuel loan of $63,000 for the purchase of 15,000 gallons of fuel. This should sustain
the utility until the spring 2018 barge delivery season. With the new loan, the total
amount the community must repay to the Bulk Fuel Loan program is approximately
$311,000.
March 13-19, 2019
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813 West Northern Lights Boulevard, Anchorage, Alaska 99503 | P 907.771.3000 | Toll Free 888.300.8534 | F 907.771.3044 | WWW.AKENERGYAUTHORITY.ORG
Circuit Rider
Tuluksak: Received a call from Joe Dinato from the Corporation regarding
information their tank farm.
April 10-16, 2018
Circuit Rider
Tuluksak: Joe, with the village council, requested information on the bulk fuel and
power house programs.
June 11-17, 2018
Circuit Rider
Tuluksak: AVTEC instructor traveled to the community to provide training and
assessment on the village bulk fuel handling facilities.
July 10-16, 2018
Electrical Emergency Assistance
Tuluksak’s power went out Friday July 6. AEA was notified Saturday evening July 7.
AEA’s Circuity Rider technician called the local utility and attempted to work with
the local operator that evening and Sunday to diagnose the problem. Once it became
evident that a site visit was necessary AEA contacted the contractor who originally
installed a new engine last year since they were most familiar with the installation.
Parts needed to be ordered. Once the parts arrived in Anchorage, the contractor
traveled to Tuluksak and the power was restored at about 3am Friday, July 13. The
contractor was only able to place online an older diesel generator set that has high
runtime hours with questionable reliability. After the contractor left the community
with the power online, with plans to return with parts to repair the newer unit, one
of the utility’s operators returned to the powerhouse and switched the cooling
system from manual mode to auto mode. This caused the only operable diesel
engine generator set to overheat and shut down. The community went black. The
cooling system’s auto mode has been broken for quite a while and we do not know
why it was switched. When the local operator tried to restart the engine the crank
batteries were found to be bad. New batteries where air freighted from Bethel
Sunday July 15. The local operator was not able to restore power. The contractor is
scheduled to return Monday July 16. During Tuluksak’s previous power outage
duration from July 6 to the 13, someone vandalized the powerhouse. The switchgear
indicators screens were obscured with spray-paint and a large bundle of control
cables were purposely cut. It is unknown which systems the vandalism has affected.
It is estimated to take at least 4 days on site for a specialized technician to repair the
damage. It is unlikely all the problems caused by vandalism can be repaired during
this emergency assistance.
July 17-23, 2018
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Electrical Emergency Assistance
Tuluksak’s electrical emergency continued off and on from the previous week.
Power was restored late Monday, July 16. Information gleaned by AEA’s work in the
community responding to this most recent electrical emergency suggests that the
sole remaining engine in service will likely fail when the community’s load increases
in the fall if significant repairs or full engine replacement does not occur before
then. AEA continues to work with the community, providing on-site technical
assistance that includes guidance on operations and maintenance, and is currently
working internally on a plan for further assistance that might help improve the
sustainability of the village powerhouse.
July 24-30, 2018
Electrical Emergency Assistance
Power is out again in Tuluksak. AEA’s contractor has been intermittently on-side to
identify and trouble-shoot the root causes. AEA is also working on a plan to help the
community move toward readiness for long-term and sustainable solutions.
July 31-August 6, 2018
Statewide Energy Programs & Project Development
AEA staff hosted the new and retiring General Manager from the utility in Tuluksak
for a three day PCE and Ampy meter training. Staff also took this time with the
utility representatives to discuss a more proactive approach to maintenance and
utility management over the next couple of years.
Electrical Emergency Assistance
Tuluksak: Power was restored August 4th. There are ongoing repair efforts under
way with the expectation of the contractor returning to the community on August 8
to complete work. Estimate the cost of electrical emergency assistance for July and
August to cost $50,000.
August 14-20, 2018
Circuit Rider
Tuluksak: Alaska Dept. of Education & Early Development contacted AEA staff for
information regarding the utility’s status.
September 18-24, 2018
Circuit Rider
Tuluksak: Researched archived drawings, photos and operations documents for
engineering consultant on DERA upgrade.
November 13-19, 2018
Circuit Rider
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813 West Northern Lights Boulevard, Anchorage, Alaska 99503 | P 907.771.3000 | Toll Free 888.300.8534 | F 907.771.3044 | WWW.AKENERGYAUTHORITY.ORG
Tuluksak: Assisted DCRA with information on the community’s bulk fuel storage
facilities.
December 4-10, 2018
Statewide Energy Programs & Project Development
AEA staff spoke with Tuluksak’s utility manager and a member of the tribal council
to discuss providing assistance and training in management and operations.
December 11-17, 2018
Circuit Rider
Tuluksak: Discussed the utility’s infrastructure opportunities with AEA planning
staff.
January 22-28, 2019
Significant Activities
Tuluksak - PCE Payments on Hold
Power Cost Equalization program payments for July and September 2018 have been
released to the Tuluksak Tribal Utility (TTU) following Alaska Energy Authority’s
(AEA) recent receipt of overdue reports. Payments for October, November, and
December are withheld pending AEA’s receipt of the required monthly reports.
Efforts to contact the utility manager in Tuluksak have not been successful.
Significant Activities: Special Projects:
AEA posted the VW Settlement Beneficiary Mitigation Plan to our website.
Beginning in February AEA will accept applications for school bus and public transit
bus engine replacements funded through the Settlement. AEA is requesting funds
from the Trustee as voluntary DERA match to replace diesel engines in the
powerhouses located in Circle, Takotna, Tuluksak, and Chignik Lake.
January 29-February 4, 2019
Significant Activities
Tuluksak - Bulk Fuel Loan Payments
A PCE program payment of $15,877.84 for August through September was received
on behalf of the Tuluksak Utility’s (TU) bulk fuel loan. The amount owed by TU was
$18,000 ($6,000 monthly). Attempts to contact TU for November and December PCE
reports were unsuccessful.
Circuit Rider
Tuluksak: AEA staff attempted to travel to the community but weather conditions
in Bethel necessitated the trip be rescheduled.
February 11-17, 2019
Statewide Energy Programs & Project Development
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813 West Northern Lights Boulevard, Anchorage, Alaska 99503 | P 907.771.3000 | Toll Free 888.300.8534 | F 907.771.3044 | WWW.AKENERGYAUTHORITY.ORG
AEA staff traveled to Tuluksak to do an assessment of the financial and operational
management of the utility. Two Circuit Rider staff and one business management
specialist spent two days in the community assessing and assisting the utility. The
trip was the first step in a larger effort to provide ongoing assistance to the utility.
The end goal of the project is to reduce the risk of emergencies occurring and
improve the financial management of the utility.
Circuit Rider
Tuluksak: As part of the readiness project AEA CR and REUW staff traveled to the
community and conducted an assessment of the utility’s powerhouse and
distribution system.
March 4-8, 2019
Circuit Rider
Tuluksak: The operator, Harry, requested help with oil pressure and coolant
temperature sensors. We forwarded the utility the coolant sample test report that
recently came back. It recommends flushing and replacing the coolant.
March- 11-15, 2019
Circuit Rider
Tuluksak: Received a call from the operator, Harry, reporting he had had an outage
the day before due to lack of fuel. Arrangements have been made to bring additional
fuel into the village for the utility.
March 18-22, 2019
Technical Assistance
AEA staff provided one-on-one training for Tuluksak's new utility clerk.
March 25-29, 2019
Technical Assistance
Tuluksak Utility Management Assistance: Tuluksak Utility ran out of fuel and
experienced a blackout due to poor ice road conditions delaying spring deliveries by
weeks. AEA staff worked with DCRA staff to determine an alternate plan for fuel
delivery that provides fuel until summer barge season. AEA staff provided training
to Utility staff in bulk fuel management & utility operations during an in person
training March 21, 2019. A plan for two years of technical assistance will be
presented to the Tuluksak Traditional Council in the late spring or early summer.
AEA staff are reviewing it prior to submission to the Council.
April 1-5, 2019
Circuit Rider
Tuluksak: Assisting with coordinating the utility’s multiple upgrade projects.
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813 West Northern Lights Boulevard, Anchorage, Alaska 99503 | P 907.771.3000 | Toll Free 888.300.8534 | F 907.771.3044 | WWW.AKENERGYAUTHORITY.ORG
April 9-12, 2019
Circuit Rider
Tuluksak: Assisted the utility with customer metering questions.
April 15-19, 2019
Circuit Rider
Tuluksak: Assisted the operator with ordering oil and fuel filters.
April 29- May 3, 2019
Circuit Rider
Tuluksak: A community leader requested information regarding the bulk fuel
program.
Tuluksak: Traveled to the community and provided training to the locals on
powerhouse operations and maintenance. Reviewed the schools emergency backup
diesel generator set. The school has engaged the services of contractor.
May 6-10, 2019
Circuit Rider
Tuluksak: The operator had questions regarding completing the plant log.
Statewide Energy Programs & Project Development
Tuluksak Utility Assistance Project: AEA staff traveled to Tuluksak April 30-May 3
to provide powerplant maintenance, utility finance, and Council training. Training
was provided to 15 community members, 4 power plant operators, and 7 Council
members. AEA staff also provided assistance to develop new utility procedures and
documents for income collection, pce reporting, utility management, and strategic
planning.
May 25-31, 2019
Electrical Emergency Assistance
In accordance with 3 AAC 108.230 AEA provided Electrical Emergency Assistance to
Tuluksak. As of June 3 the power is currently on in the community. The utility
customers have experienced numerous outages since May 24. At first, AEA provided
remote technical support to the utility operator, and shipped a new engine crank
battery and parts. When outages continued an AEA staff technician travel to the
community with parts and performed engine repairs May 29 and 30. The power was
stable when the technician left the community. AEA continues to provide additional
remote technical support as additional outages occur.
Circuit Rider
Tuluksak: The community requested information on their bulk fuel infrastructure.
Provided electronic copy of their engine repair manual. Worked with the operator
on numerous short outages.
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June 3-7, 2019
Electrical Emergency Assistance
In accordance with 3 AAC 108.230 AEA continued to provide Electrical Emergency
Assistance to Tuluksak. Lynden is scheduled to airfreight an AEA provided enclosed
diesel engine generator set with an under skid fuel tank (genset) to Bethel on
Tuesday, June 11. Ryan Air will pick up the genset in Bethel and air freight to
Tuluksak. AEA staff traveled to Tuluksak on June 11 anlong with an enclosed
generator set. The genset will be connected near the utility’s existing powerhouse
adjacent next to the step up transformers. When AEA staff landed in the community
the power was out. Restored power due to contaminated fuel problem. Unloaded
charter planes and connected enclosed generator set. Power was out moring of June
12. After the connection of the enclosed genset power was completed at noon power
was restored. Anticipate anther trip to complete power metering to enable proper
reporting and install fuel transfer pump to facilitate filling the enclosed genset
without spills. items Estimate the electrical emergency during June to cost $35,000
Circuit Rider
Tuluksak: Assisting the community with having their fuel tested by a lab.
813 West Northern Lights Boulevard, Anchorage, Alaska 99503 | P 907.771.3000 | Toll Free 888.300.8534 | F 907.771.3044 | WWW.AKENERGYAUTHORITY.ORG
REDUCING THE COST OF ENERGY IN ALASKA
Dates: May 28 & 29, 2019
Subject: Hiilangaay Hydroelectric Project Trip Report
Participants: Curtis Thayer & Bryan Carey
On Tuesday, May 28, AEA Executive Director, Curtis Thayer, and Hydro Groups Manager,
Bryan Carey, traveled from Anchorage to Ketchikan, Alaska. On the morning of May 29th
they were joined by Alaska Power & Telephone (AP&T) staff, Jason Custer and flew
together on Carlin Air to the project site at Copper Harbor on Prince of Wales (POW) Island.
On arrival, they were met by AP&T Project Superintendent, Ben Beste, for a tour of the
project.
Points of Interest
Transmission: Transmission lines are up crossing at Jumbo Island. Camp is receiving
power across the transmission lines from the POW electric system.
Fiberglass pipe present in storage.
Powerhouse: Major equipment appeared to have been installed. Electrician was present
wiring equipment. Steel penstock was connected to powerhouse and the outlet back to the
stream appeared complete.
Inlet: Cofferdam & diversion in place. Water leaking through cofferdam so may need to
improve cofferdam and/or pumping of water from foundation area. Substantial amount of
rock has been blasted from the lake outlet and a cleared steep route down to the elevated
creek crossing. Pipe has not been installed and additional work needs to be done at this
location for diversion. AP&T waiting for FERC approval on Stage 5 design.
Stream crossing: Concrete has been formed and poured to support the elevated section of
steel pipe at this section.
Top of Steel penstock: Last piece of steel pipe was being placed as the last piece of
elevated steel penstock pipe. Equipment did not have the reach to place this section on this
day. Subsequently it was placed after we departed the site. It was the last section of pipe
on the steep section above powerhouse.
The equipment and crew are enough to substantially finish the project this year. A
delay in FERC approval of Stage 5 design could delay project a year since the in-water
work window in the summer is limited.
Following the tour they returned to Ketchikan by Carlin Air and returned to Anchorage by
evening flight.
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Photo 1: Fiberglass pipe, bend, and access
Photo 2: Transmission line at Jumbo Island crossing
Photo 3: Penstock into powerhouse
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Photo 4: Outlet to Thayer Creek Photo 5: Inside powerhouse
Photo 6: Inside powerhouse
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813 West Northern Lights Boulevard, Anchorage, Alaska 99503 | P 907.771.3000 | Toll Free 888.300.8534 | F 907.771.3044 | WWW.AKENERGYAUTHORITY.ORG
Photo 7: Cofferdam Photo 8: Diversion & future foundation area
Photo 9: Support for creek crossing Photo 10: Steel penstock above powerhouse