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2020-09-16 AEA Agenda and docs
813 W Northern Lights Blvd., Anchorage, AK 99503 Phone: (907) 771-3000 Fax: (907) 771-3044 Toll Free (Alaska Only): (888) 300-8534 REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG RGYAUTHORITY.ORG Alaska Energy Authority Board Meeting September 16, 2020 (after AIDEA) AGENDA Dial 1 (888) 585-9008 and enter code 624-926-808#. Public comment guidelines are below. 1. CALL TO ORDER 2. ROLL CALL BOARD MEMBERS 3. AGENDA APPROVAL 4. PRIOR MINUTES – August 5, 2020 5. PUBLIC COMMENTS (2 minutes per person) see call in number above 6. EXECUTIVE SESSION A. Confidential matters related to Bradley Lake, Soldotna Quartz Line, Snettisham (Update and budget matters) 7. NEW BUSINESS – N/A 8. OLD BUSINESS A. West Fork Upper Battle Creek Construction Update 9. DIRECTOR COMMENTS A. Organization Chart Update (Fourth Quarter) B. Rural Programs – Strategy and Tools to Integrate Data, Projects and Operations (Verbal) C. Bradley Lake – Needle Maintenance D. Denali Commission Update E. Alaska C-PACE Update – Municipality of Anchorage (Verbal) F. Power Project Fund Dashboard and Loan Report G. Community Outreach Schedule H. Articles of Interest I. Next Regularly Scheduled AEA Board Meeting Wednesday, October 28, 2020 10. BOARD COMMENTS 11. ADJOURNMENT Alaska Energy Authority Page 2 of 2 Public Comment Guidelines Members of the public who wish to provide written comments, please email your comments to publiccomment@aidea.org by no later than 4 p.m. one day prior to the board meeting, so your comments can be shared with board members prior to the board meeting. On the day of the board meeting when you call in, you will enter the teleconference muted. After board roll call and agenda approval, we will ask callers to press *9 on their phones if they wish to make a public comment. This will initiate the hand-raising function. We will unmute callers individually in the order the calls were received. When an individual is unmuted, you will hear, “It is now your turn to speak.” Please identify yourself and make your public comments. OUTFALL Outfall area during foundation excavation First piece of pipe laid from outfall Pipe fusing operations at the completed outfall 1 2 3 1 3 2 WALL 2 Looking upstation at Wall 2 during 2019 construction season Wall 2 from April 2019 Looking downstation at Wall 2 during 2020 construction season and pipe installation 1 2 3 1 2 3 PIPELINE Pipeline fusing and construction in summer 2020 63” HDPE pipe fusing operations HDPE pipe installation near outfall Orion’s Daniel Hjortstorp with staged 84” pipe fitting 84” fiberglass pipe install near diversion in spring 2020 Pipe installation between Wall 3 and the diversion in summer 2020 1 2 3 4 5 6 1 5 6 2 4 3 DIVERSION Upstream side of diversion (looking downstream) with water flowing through pipe Concrete capped downstream side of diversion in summer 2020 Placing diversion concrete via crane slung bucket in winter 2019/2020 Rebar and concrete formwork during winter 2019/2020 concrete placements Concrete forming for casting 84” thimble in diversion Aerial image of diversion concrete forming operations and temporary creek bypass during winter 2019/2020 1 2 3 4 5 6 1 4 6 5 3 2 PROJECT OVERVIEW Aerial view of lower access road during summer 2018 63” HDPE and 84” fiberglass pipe in staging area Several of the key design and construction masterminds of the Upper West Fork of Battle Creek Diversion project who have each poured thousands of hours into this project In photo left to right: Jay Thom (DOWL Engineer of Record), John Stout (Lead DOWL Field Project Representative), Bryan Carey (AEA Project Manager) Not pictured: Ron Rebenitsch (President/Owner Energy Engineering, Inc. and HEA Project Representative), Dave Banke (Orion Director of Operations), Doug Dorton (Orion Project Manager), Daniel Hjortstorp (Orion Project Engineer), Mike Arriaga (Orion Superintendent) Drilling operations on lower access road during summer 2018 Diversion looking downstream near substantial completion during summer 2020 Pioneered upper access road during summer 2018 In photo left to right: Chris Breeds (President/Owner of Subterra, Inc. Blasting Expert/Project Consultant), Paul Pribyl (DOWL Project Geologist and Field Project Representative), Ron Rebenitsch (President/Owner Energy Engineering, Inc. and Homer Electric Association Construction Project Representative), Jeremiah Holland (DOWL Geotechnical Engineer of Record) 1 2 3 4 5 6 7 1 5 6 7 3 4 2 Curtis ThayerExecutive Director - AEAPCN 08-0208VacantChief Operating OfficerPCN 08-0206Bryan CareyOwned Assets/Hydro Group MgrPCN 08-X071Keith DivollPCE TechnicianPCN 08-X075Jennifer BertoliniExecutive AsstPCN 08-0219VacantAdmin AsstPCN 08-0410Kirk WarrenDir Engineering & Energy DevelopmentPCN 08-0491Neil McMahonPlanning ManagerPCN 21-7014Josephine HartleyProject Manager Program MangerPCN 08-0443 Vacant Safety/Whs PCN 08-0440VacantRural Electric Utility WorkerPCN 21-7010Kyler KillmerCircuit Rider TechnicianPCN 08-X003Justin TuomiRural Electric Utility WorkerPCN 21-7012Tim SandstromDir Rural ProgramsPCN 08-0466Alan FettersRural Assist MgrPCN 08-0231TW PatchDirector Planning PCN 08-0230Daniel JohnstonProject ManagerPCN 08-X007Phillip ChandonnetCircuit Rider TechPCN 08-X029Rebecca GarrettProject ManagerPCN 08-0403Brandy Dixon Public Engagement Officer PCN 08-X034Brandi WhiteSr AccountantPCN 08-0457Vacant IFD AmblerPCN 08-0233Justin CrowtherSystems ProgrammerPCN 08-X076Robert HawkinsMIS AdministratorPCN 08-0227Vacant Analyst ProgrammerPCN 08-X037William PriceProject ManagerPCN 08-0222Alan WeitznerExecutive Director - AIDEAPCN 08-0200Mark Davis Chief Infrastructure Dev OfficerPCN 08-0224Chris AndersonCommercial Fin DirPCN 08-0201Brenda ApplegateCFOPCN 08-0203Amy AdlerAsst CFO/ControllerPCN 08-0453Jennifer BrideFinancial Systems AnalystPCN 08-X038Salina BeardenAsst ControllerPCN 08-X074Jessica HoustonAccounting TechPCN 08-0214Owen BerklundAccountantPCN 08-0438VacantFinancial Reporting AnalystPCN 21-7015Amy GreenAccounting TechPCN 08-0468Beazit RedzepiSr Project Acct/ Budget AnalystPCN 08-0507Linda SennHR Director PCN 08-0455Lex SargentoCPCOPCN 08-0220Michele HopeSr. Contracting OfficerPCN 08-0495Lois LemusContracting OfficerPCN 08-X019VacantContract AdminPCN 08-0469Alyssa WilsonExecutive AsstPCN 08-0213Khae PasaoAdmin AsstPCN 08-X036Aimee SudbeckAdmin AsstPCN 21-7013VacantSr Investment Offcr Project FinancePCN 08-0402Leona HakalaLoan Officer IIPCN 08-0204William PhelanLoan Officer IIPCN 08-0205Kara MabryCredit AdministratorPCN 08-0215Rebecca LawsLoan Srvcs SupvPCN 08-0207Emily EngrischLoan Servicing/ATPCN 08-0210 VacantProject ManagerPCN 08-0490Jesse PetersonSr. Manager PFAMPCN 08-0228Ryan GarnerProject Manager Program ManagerPCN 08-X033Rob JordanProgram Manager - Energy Data PCN 08-0425VacantEconomistPCN 08-X098VacantSenior IFD OfficerPCN 08-X095Jeff WilliamsPCE Program Mgr/ Cmnty Assist AdvPCN 08-0411Angelica SamudioPCE TechnicianPCN 08-0217Jeff San JuanSr Fin OfficerPCN 08-X109 Terence CatoIT DirectorPCN 08-0401 82 EX: Exempt 1 NP: Non Perm 83 Total PositionsDepartment of Commerce, Community and Economic DevelopmentAIDEA/AEAFY2021 Org Chart as of 9/8/2020VacantIFD CoordinatorPCN 08-0412Sam TappenIFD OfficerPCN 08-0498 VacantChief Investment OfficerPCN 08-0229Jodie MackBusiness Systems AnalystPCN 08-X141VacantEnergy Funding Res SpecialistPCN 08-X077Taylor AsherAsst Project Mgr - RenewablesPCN 08-X1069/1/2020Betsy McGregorPrelim Design & Envir MgrPCN 08-X073Geoffrey JohnsInvestment Offcr PF PCN 08-X072Karin St. ClairGrantsPCN 08-X127VacantHR TechnicianPCN 08-0473Nicole DavisFront Desk Admin PCN 08-0216UpdatedKarsten RodvikExternal Affairs OfficerPCN 08-0223VacantProgram ManagerPCN 08-0202SHARED SERVICESAIDEAAEAKevin BucklandAsst CFO/ControllerPCN 08-0209VacantSr AccountantPCN 08-0423Carmen NobleAccountantPCN 08-0493Rita NiemannAccounting TechPCN 08-0211Jennifer BrownAsst ControllerPCN 08-X117Fiorella Isla GalvezAccounting TechPCN 08-0221David LockardInfrastructure EngineerPCN 08-X123Jule MageeAK Cares PMPCN 08-T179 Award No Project Name DC Funding Perf. Period Beg Perf. Period Thru Actions Since Last Report Estimated Jobs Created 01349-09 RPSU - Togiak-Twin Hills Intertie 4,187,221 2/15/2011 9/30/2021 None 26 01432-09 BFU - Tatitlek 1,472,000 6/1/2013 12/31/2021 Date Extended 30 01473-06 RPSU - Clark's Point 2,819,700 6/16/2015 6/30/2020 In Close-out 26 01474-07 BFU - Chalkytsik 517,500 6/16/2015 12/31/2021 Date Extended 30 01485-04 START Communities Tech Asst 375,000 11/1/2015 6/30/2022 None 2 01492-08 BFU - Beaver 608,000 7/6/2016 12/31/2021 Date Extended 5 01500-06 Bulk Fuel Operator Training 1,010,000 9/1/2016 12/31/2021 None 3 01515-07 Circuit Rider Program 900,000 1/1/2017 12/31/2021 None 3 01516-07 RPSU - Maintenance & Improvement 748,776 10/1/2016 12/31/2022 Date Extended 20 01523-06 Miscellaneious Small M&I Projects 870,000 6/1/2017 12/31/2021 None 20 01524-03 RPSU - Port Heiden 1,250,000 7/1/2017 6/30/2020 In Close-out 30 01525-05 Power Plant Operator Training 647,514 8/15/2017 9/30/2021 None 3 01544-03 Itinerant Utility Training 500,000 3/1/2018 6/30/2021 None 3 01548-06 RPSU M&I - Statewide 2,550,000 5/1/2018 12/31/2021 Date Extended 20 01549-04 RPSU Inventory & Assessment - Statewide 300,000 4/18/2018 12/31/2021 Date Extended 20 01550-03 RPSU - Akhiok 1,500,000 5/1/2018 9/30/2021 Date Extended 26 01551-04 RPSU - Venetie 250,000 5/1/2018 12/31/2020 None 5 01557-02 Barge Headers and Fill Lines 3,976,820 10/1/2018 12/31/2022 None 60 01571-01 BFU - Nunapitchuk 1,852,546 8/15/2019 12/31/2022 None 30 01573-01 BFO In Community Training 40,000 8/15/2019 12/31/2020 None 2 01574-01 RPSU - Nikolai 351,050 8/1/2019 6/30/2021 Date Extended 5 01575-02 RPSU - Nelson Lagoon 135,455 8/1/2019 6/30/2021 Date Extended 5 01576-01 RPSU - Rampart 351,050 8/1/2019 6/30/2021 Date Extended 5 01577-02 RPSU - Napaskiak 135,455 8/1/2019 6/30/2021 Date Extended 5 01592-00 BFU - Scammon Bay 300,000 2/17/2020 3/31/2021 None 5 01600-00 VEEP - Statewide 500,000 6/15/2020 12/31/2021 None 3 Total Funding for Active DC Awards:28,148,087 Less Total Spending on Active DC Awards:(10,854,103) Total Funding Remaining on Active DC Awards:17,293,985 Active Denali Commission Awards As of 08/31/2020 AEA LOAN DASHBOARD REPORT AEA POWER PROJECT LOAN FUND YEAR TO DATE 07/01/2020 LOAN ACTIVITY EARNINGS START DATE LOAN CATEGORY STARTING BALANCE FUNDS DISBURSED PAYMENTS RECEIVED ENDING BALANCE INTEREST RECEIVED LATE FEES RECEIVED INTEREST + LATE FEES 21 AEA POWER PROJECT FUND LOANS 27,560,262 92,322 (83,037) 27,569,547 21,490 1,395 22,885 TOTAL # OF PPF LOANS 2 LOAN PROGRAM SUMMARY # OF DELINQUENT PPF LOANS Outstanding Loans per Trial Balance 27,569,546.65$ 2,998.03$ Uncommitted Cash Balance 10,084,873.39$ LOANS DELINQUENT AMOUNT ($)Loan Commitments 855,216.80$ 0.010%Total Loan Program 38,509,636.84$ % OF DELINQUENT LOANS TO PORTFOLIO BALANCE 06/30/2021 END DATE FISCAL YEAR-TO-DATE LOAN PORTFOLIO ACTIVITY (07/01/2020 - 06/30/2021 ) Waterfall Creek Hydro - King Cove, Alaska Print Date: 8/7/2020 Page 1 of 2 AEA POWER PROJECT FUND LOANS BY ENERGY REGION & PROJECT TYPE OUTSTANDING BALANCES & NEW ACTIVITY ENERGY REGION AEA PPF LOAN BALANCE REMAINING LOAN COMMITMENTS NEW APPLICATIONS IN PROCESS # OF AEA PPF LOANS TOTAL ALEUTIANS 2,552,029 - 65,000 4 2,617,029 BERING STRAITS - - - - - BRISTOL BAY 460,722 - 514,500 2 975,222 COPPER RIVER/ CHUGACH - - - - - KODIAK 47,092 - - 2 47,092 LOWER YUKON- KUSKOKWIM 347,733 - - 2 347,733 NORTH SLOPE - - - - - NORTHWEST ARCTIC - - - - - RAILBELT 4,086,401 - - 3 4,086,401 SOUTHEAST 19,889,105 855,217 - 3 20,744,322 27893070.2 YUKON-KOYUKUK/ UPPER TANANA 186,465 - 4,083,114 5 4,269,579 10422145.37 58569.36 27,569,546 855,217 4,662,614 21 33,087,378 TOTAL BIOMASS $103,451 CONSERVATION $9,092DIESEL $891,469 HYDRO $24,597,692 SOLAR $793,227 TRANSMISSION $1,824,285 TANK FARM $2,258,829 WIND $2,609,333 AEA PPF LOANS BY PROJECT TYPE -NEW & OUTSTANDING BALANCE BIOMASS 1 CONSERVATION 1 DIESEL 5 HYDRO 7 SOLAR 1 TRANSMISSION 1 TANK FARM 1 WIND 4 AEA PPF LOANS BY PROJECT TYPE Print Date: 8/7/2020 Page 2 of 2 813 W Northern Lights Blvd., Anchorage, AK 99503 Phone: (907) 771-3000 Fax: (907) 771-3044 Toll Free (Alaska Only): (888) 300-8534 Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG RGYAUTHORITY.ORG 2019/2020 AEA Community Outreach Schedule Last modified on September 2, 2020 # Status Date Organization AEA Staff 1. Upcoming To Be Determined, 2020 Bethel Chamber of Commerce Curtis W. Thayer 2. Upcoming To Be Determined, 2020 Greater Palmer Chamber of Commerce Curtis W. Thayer 3. Upcoming September 23, 2020 2020 Virtual Southeast Conference Annual Meeting: Energy Committee Curtis W. Thayer 4. Past September 2, 2020 Congressman Don Young Visits AIDEA and AEA Office Curtis W. Thayer 5. Past July 28, 2020 Fairbanks Economic Development Corporation: Energy for All Alaska Task Force Curtis W. Thayer 6. Past July 22, 2020 Fairbanks Chamber’s Energy, Environment and Natural Resources Committee Kirk H. Warren 7. Past June 12, 2020 Commonwealth North’s Energy Action Coalition Curtis W. Thayer 8. Past June 11, 2020 (Postponed*) Seward Chamber of Commerce Curtis W. Thayer 9. Past May 6, 2020 (Postponed*) Kenai/Soldotna Chamber of Commerce Curtis W. Thayer 10. Past April, 21, 2020 (Postponed*) Homer Chamber of Commerce Curtis W. Thayer 11. Past March 10, 2020 Greater Fairbanks Chamber of Commerce Curtis W. Thayer 12. Past February 20, 2020 Greater Wasilla Chamber of Commerce Curtis W. Thayer 13. Past February, 11, 2020 Community and Regional Affairs Committee Curtis W. Thayer 14. Past February 10-14, 2020 Alaska Forum on the Environment AEA Team Members: 11a. Past - Welcome Remarks during Keynote Event: Alaska Beyond Oil Panel T.W. Patch 11b. Past - Renewable Energy & Rural Alaska Powerhouse Panel Bill Price 11c. Past - Bulk Fuel Tank Farm Updates: Construction, Training, and Regulations Panel Bill Price 11d. Past - The Shines in Alaska: Solar Power Projects on the Railbelt Panel Tom Benkert 11e. Past - Harvesting Energy from Wood & Waste: Biomass and Landfill Gas Fuels in Alaska Panel Taylor Asher 11f. Past - Electric Vehicles Panel Betsy McGregor *These presentations’ date/time have been postponed due to COVID-19 until a later date/time can be determined. Page 2 of 2 11g. Past - Solar Power in Rural Alaska Panel David Lockard 11h. Past - The Low-Hanging Fruit of Energy Savings Panel Rob Jordan 11i. Past - New Hydropower Energy for Alaska Panel Bryan Carey 11j. Past - Rooftop Solar in your Alaskan Community Tom Benkert 11k. Past - Capturing the Wind Across Alaska: Large Scale Wind Projects Panel Kirk H. Warren 11l. Past - Clean Energy Financing Panel Tom Benkert 15. Past February 5-7, 2020 National Association of State Energy Officials Curtis W. Thayer 16. Past February 4, 2020 Southeast Conference Mid-Session Summit Curtis W. Thayer 17. Past January 30, 2020 Senate Community and Regional Affairs Committee Curtis W. Thayer 18. Past January 30, 2020 House Subcommittee Curtis W. Thayer 19. Past January 29, 2020 Senate Special Committee on the Railbelt Electric System Curtis W. Thayer 20. Past January 29, 2020 Alaska Power Association’s Legislative Conference Curtis W. Thayer 21. Past January 10, 2020 Commonwealth North’s Energy Action Coalition Curtis W. Thayer 22. Past December 18, 2019 Chugiak-Eagle River Chamber of Commerce Curtis W. Thayer 23. Past December 9, 2019 Anchorage Chamber of Commerce Curtis W. Thayer 24. Past December 5, 2019 BIA Tribal Providers Conference Curtis W. Thayer 25. Past November 21, 2019 Alaska Municipal League Annual Conference Jeff Williams 26. Past November 18, 2019 Alaska Municipal League Annual Conference Tom Benkert http://www.newsminer.com/opinion/editorials/restart-the-susitna-dam-project-governor-legislature-must-look-out- for-alaskans-energy-future/article_4446558c-ce33-11ea-a9ec-ab9236fa5037.html News-Miner Opinion Restart the Susitna Dam project: Governor, Legislature must look out for Alaskans’ energy future Jul 26, 2020 News-Miner opinion: The recent Golden Valley Electric Association board of directors election prompted much discussion on this page about electricity rates, with many readers noting that rates here are high compared to other Alaska urban communities. The campaigns also included talk about the desire for clean energy. GVEA itself has a goal of reducing its carbon emissions by 26% by 2030, as measured against the utility’s 2012 carbon emission goal. A long-lasting way to achieve that — and more — is for work to resume on the Susitna-Watana Hydroelectric Project. It’s vital. The dam and hydroelectric system would benefit not only GVEA customers but also customers of utilities elsewhere along the Railbelt. As proposed, the 600-megawatt project would produce 2.8 million megawatt hours of electricity, enough to provide for 50% of the needs of the Railbelt region, which reaches from Fairbanks to the Kenai Peninsula. The region includes roughly 75% of the state’s population. Hydropower is clean power. And the estimated life of the Susitna-Watana Hydroelectric Project, which is generally just referred to as the Susitna Dam, is about 100 years. This is no small project. The dam would be built on the Susitna River, 87 river miles upstream from Talkeetna and, according to the Alaska Energy Authority’s information site, far above the natural impediment to salmon migration that is Devil’s Canyon. The dam would be 705 feet high and create a reservoir 42 miles long and about 1 mile wide. The project and its potential impact have been studied intensively, on and off, for decades. Many more studies have been proposed by the state energy agency, which is the lead entity on the project. But in late 2014, former Gov. Bill Walker, just weeks after winning election, suspended spending on the dam and other projects to allow for a review as tumbling oil prices continued to create major budget deficits for the state. In July of 2015, he allowed the project to proceed through 2017, at which time all work was halted. Then in came new Gov. Mike Dunleavy, who in February 2019 rescinded his predecessor’s stop- work order. That act was only symbolic, however. No additional money was provided for the project. And that is where things stand today: A project that has been found to be technically doable and possessing enormous potential for the long-term energy security of a large part of Alaska’s population sits idle. But there are stirrings. Governor Dunleavy’s office has been provided with much information about the project. Several legislators have asked for information. And, importantly, potential investors, who would buy the bonds that would finance the project, have reportedly shown interest. There won’t be a project for those investors to invest in, however, unless the governor and Legislature agree to provide the money to resume work toward federal licensing of the project. The Alaska Energy Authority’s required annual update to the Legislature for 2020 notes that the agency is about two-thirds of the way through the federal licensing process. If work had not ceased in 2017, the agency’s update reads, “the next steps for the project would have been implementation of the second study season, followed by preparation of final reports and a license application.” We have lost years on this project. We can’t afford to lose any more. As the Alaska Energy Authority points out, “Alaska ranks the fifth highest in U.S. energy costs and remains reliant on volatile-priced fossil fuels.” That’s not good for Alaska, for its businesses or for its residents. The project will take about eight years to build. Alaskans and their leaders need to be forward- thinking: What will our energy situation be like in the years ahead? Our energy situation for years has been one filled with uncertainty. We once prided ourselves on being known as the great land of big ideas. Let’s return to that and get on with this project. Governor Dunleavy and the Legislature need to make the Susitna-Watana Hydroelectric Project a priority and provide funding so work can resume toward obtaining federal approval. 813 West Northern Lights Boulevard, Anchorage, Alaska 99503 T 907.771.3000 Toll Free 888.300.8534 F 907.771.3044 REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG RGYAUTHORITY.ORG PRESS RELEASE Brandy M. Dixon Public Engagement Officer (907) 771-3078 FOR IMMEDIATE RELEASE August 6, 2020 AEA Board Supports Purchase of Soldotna-Quartz Creek Transmission Line (Anchorage) – The Alaska Energy Authority (AEA) Board of Directors moved toward improving the reliability of the Railbelt bulk power system and decreasing costs for Alaska’s Railbelt ratepayers. In the regular Board meeting held Wednesday, August 5 the AEA Board endorsed AEA’s efforts to purchase the 39.3 mile 115-kilovolt transmission line between the Sterling Substation and Quartz Creek (SSQ Line) from the Homer Electric Association. The SSQ Line is an essential component of the Railbelt transmission system, which delivers Bradley Lake hydroelectric generated power from Homer north to Fairbanks. Bradley Lake, a 120-megawatt hydroelectric project, is 27 miles southeast of Homer and delivers the least expensive power available to Railbelt ratepayers. “I would like to extend my thanks to all the participating utilities and their efforts by working together for the benefit of Alaska ratepayers in Southcentral and on the Railbelt,” said AEA Board Chair Dana Pruhs. AEA Executive Director Curtis W. Thayer added, “If it wasn’t for the utilities in this process we wouldn’t be where we are. The six utilities came together after the Swan Lake Fire and worked cooperatively to benefit all their ratepayers and get Bradley power to more customers.” The transaction brings many significant benefits to customers including better cost alignment, increased reliability, and future prospect for upgrades to the line, which would decrease line losses and allow for increased power transmission north, and unconstraining Bradley power. “When I think about AEA’s mission to reduce the cost of energy in Alaska, I can’t think of a better example than what will be a historic purchase of the SSQ Line," said Tony Izzo, CEO of Matanuska Electric Association and the Chair of the Bradley Lake Project Management Committee. "This critical infrastructure brings the cheapest power on the Railbelt system to almost three quarters of the state's population from renewable hydro-electric resources. I think it’s a great example of what AEA can do in the state of Alaska.” The closing of this transaction is anticipated in the fourth quarter of 2020. The Alaska Energy Authority is a public corporation of the state. Its mission is to reduce the cost of energy in Alaska. ### Executive Director Report: Crystal Enkvist, APA/AIE, 703 West Tudor Rd., Suite 200, Anchorage, AK; Direct: (907) 771-5703, E-mail: cenkvist@alaskapower.org, Toll-free: 1-877-992-7322, Fax: (907) 561-5547 Page 1 Page 1 Alaska Power Association & ARECA Insurance Exchange Semi-monthly Update By Crystal Enkvist, Executive Director & Executive Vice President August 14, 2020 August report: Since the COVID-19 health crisis struck Alaska nearly six months ago, more than 1,900 electric bill payment deferral agreements have been effectuated by our members, along with a drastic drop in commercial load. For instance, one member has seen a nearly eight percent drop in commercial kilowatt-hour sales. APA has been working closely with the Alaska congressional delegation to advocate for direct federal assistance to electric utilities. Direct financial assistance would ensure electric utilities are able to weather the storm while maintaining economical rates for Alaskans. In addition, we are preparing a six-month update to send to the Alaska State Legislature and the Governor. We appreciate the efforts our members are making to provide us with examples of how their utilities are being impacted financially and operationally from the pandemic. Save the date - APA/AIE Annual Membership Meeting scheduled for November 3-5: The association and insurance exchange are preparing for our first virtual annual meeting scheduled for November 3-5. Although we won’t be able to offer the fun social events we enjoy hosting for you, we are pleased to announce we have an impressive slate of speakers including keynote speaker Lt. General Russel Honoré. Sometimes referred to as "The Ragin' Cajun,” you may recognize his name from when he served as commander of Joint Task Force Katrina responsible for coordinating military relief efforts for Hurricane Katrina–affected areas across the Gulf Coast. Honoré will speak on “Resilient Leadership in the Age of COVID-19: Plan, Prepare, Execute and Adapt Your Plan,” a timely topic for the times we are living through. His presentation is sponsored by the National Rural Utilities Cooperative Finance Corporation, a major financial contributor to our annual meeting. Safety Moment: The National Safety Council is offering a free webinar series designed to educate safety professionals and business leaders on how innovative technology solutions can play an important role in mitigating COVID-19 risks. Attendees will hear from organizations embracing technology to manage everything from physical distancing to workplace testing, and contact tracing to public transportation. The next webinar is “Technology and COVID-19: Mitigating Risk with Innovative Technology Solutions,” scheduled for 10 a.m. on Thursday, August 20. This webinar will discuss how technology has helped decrease some of the risk related to COVID-19. Lorrain Martin, President and CEO of the National Safety Council, and Gary Shapiro, CEO of Consumer Technology Association, will discuss the Safe Actions for Employee Returns (SAFER) response on how technology can help get people back to work safely. Registration is open on the NSC website. (Source: National Safety Council) Executive Director Report: Crystal Enkvist, APA/AIE, 703 West Tudor Rd., Suite 200, Anchorage, AK; Direct: (907) 771-5703, E-mail: cenkvist@alaskapower.org, Toll-free: 1-877-992-7322, Fax: (907) 561-5547 Page 2 Page 2 AEA Board supports purchase of Soldotna-Quartz Creek Transmission Line: The Alaska Energy Authority (AEA) Board of Directors moved toward improving the reliability of the Railbelt bulk power system and decreasing costs for Alaska’s Railbelt ratepayers. In the regular board meeting held Wednesday, August 5, the AEA Board endorsed AEA’s efforts to purchase the 39.3 mile 115-kilovolt transmission line between the Sterling Substation and Quartz Creek (SSQ Line) from Homer Electric Association. The SSQ Line is an essential component of the Railbelt transmission system, which delivers Bradley Lake hydroelectric-generated power from Homer north to Fairbanks. Bradley Lake, a 120- megawatt hydroelectric project, is 27 miles southeast of Homer and delivers the least expensive power available to Railbelt ratepayers. The transaction brings significant benefits to customers including better cost alignment, increased reliability, and future prospect for upgrades to the line, which would decrease line losses and allow for increased power transmission north, and unconstraining Bradley power. “When I think about AEA’s mission to reduce the cost of energy in Alaska, I can’t think of a better example than what will be a historic purchase of the SSQ Line," said Tony Izzo, CEO of Matanuska Electric Association and the Chair of the Bradley Lake Project Management Committee. "This critical infrastructure brings the cheapest power on the Railbelt system to almost three quarters of the state's population from renewable hydroelectric resources. I think it’s a great example of what AEA can do in the state of Alaska.” The closing of this transaction is anticipated in the fourth quarter of 2020. (Source: Alaska Energy Authority) GVEA director Nordmark resigns after 25 years of service: After 25 years of service to Golden Valley Electric Association (GVEA) members, District 7 Director Bill Nordmark is resigning. Nordmark joined the GVEA Board of Directors in 1995 and represents members in District 7. “Bill Nordmark’s service and dedication over 25 years is deeply appreciated,” said GVEA Board Chair Tom DeLong. “Bill has been a supporter and proponent of ground-breaking projects and has served the membership well. His commitment to Interior Alaska runs deep.” Nordmark also served in the U.S. Air Force and was one of the original founders of the Tri-Valley Volunteer Fire Department, where he was chief and an EMT for 19 years. Nordmark lives in Healy where he owned and operated Motel Nord Haven for many years. In 2017, Nordmark was honored with the Alaska Power Association’s Mason Lazelle Award, the highest honor awarded by the organization. During his 25 years with GVEA, Nordmark was elected chair of the board for 10 years. He currently serves as the board secretary. In addition, Nordmark has served on a number of statewide and national organizations and boards, including Alaska Power Association, the ARECA Insurance Exchange Board of Trustees and the Northwest Public Power Association’s Board of Trustees. GVEA’s Board of Directors is accepting applications from District 7 members who are interested in serving the remainder of Nordmark’s term. The District 7 seat will be up for election in the spring 53° Anchorage, AK ADVERTISEMENT WD - WD_BLACK P10 4TB ExternalUSB 3.2 Gen 1 Portable Hard Drive -Black $114.99©2020 Best Buy Shop Now ANCHORAGE, Alaska (KTUU) - On Tuesday, flips were switched and for the first time, water from the Upper West Fork of Battle Creek was diverted into Bradley Lake. The new water will increase capacity at the Bradley Lake Dam by roughly 10%. Project backers say the result will be a comparable increase in energy production at the hydro-plant nearby. More specifically, this could mean enough new power to add around 5,000 homes to the Railbelt region’s main electrical grid. Matanuska Electric Association CEO Tony Izzo serves on the Board of Directors for the Bradley Lake Project. He estimates the average cost of one- kilowatt hour is around 20 cents across the Railbelt, but Izzo says energy production at Bradley Lake only costs around 5 cents. “It’s influencing rates to go down, or at least keeping them steady in the fast of rising costs, and it means less natural gas gets burned. We’re preserving that for the future as well,” Izzo said. Having an ample supply of energy, from renewable resources, can give utilities leverage when managing more costly power sources like natural gas. The streams created by Battle Glacier’s runoff are also ideal due to the fact that the area is not known as a particularly active spawning ground for salmon. A strategic bypass was put in at the new diversion to ensure that streams below still receive the minimal amount of water flow required to maintain any salmon habitat. ADVERTISEMENT Bradley Lake Project expansions likely to benefit ratepayers along the entire Railbelt The Bradley Lake Dam halts water at Alaska's largest hydroelectric plant, near Kachemak Bay.(KTUU) By Hank Davis Published: Aug. 26, 2020 at 8:02 PM AKDT Press Release Success Story "eReleases will help you get your company in the news every step of the way." OPEN Kirk Warren served in an engineering capacity for the new diversion project and is a member of the Alaska Energy Authority’s executive staff. He says that adding this new stretch of pipeline, less than two miles long, should create benefits for utility customers almost 600 miles away. “It’s the largest hydroelectric project in the state of Alaska, that provides low-cost energy to ratepayers from Homer all the way to Fairbanks and Golden Valley electric association,” he said. Theoretically, the hydro-plant at Bradley Lake has the capacity to generate up to 120 megawatts of electricity: roughly the amount of energy needed to power a city the size of Fairbanks. At this time, however, the lines in place between Bradley Lake and the main grid need to be upgraded to handle transmissions of that size. AEA Executive Director Curtis Thayer says making those improvements is the next step on the to-do list. “This is the first step that I think you’ll see us doing, in continuing to improve Bradley and the whole Railbelt’s system for energy,” he said. “There’s also a line that burned during the Swan Lake Fire last year. We call it the ‘SQ’ line. AEA is in the process of purchasing that and working with the utilities to upgrade that line. That line delivers Bradley Lake power.” Thayer says AEA’s board has already approved the move to purchase the SQ-line, and he hopes that engineers can be on the ground by this time next year. Copyright 2020 KTUU. All rights reserved. © 2020 Best Buy Around The Web Toenail Fungus? Try This Tonight Fungus Eliminator We fix your panes! Glass Doctor Shortest Men In Hollywood: Their Real Heights www.thedelite.com WATCH MOREWATCH MOREWATCH MOREWATCH MOREWATCH MOREWATCH MORE Top Videos Post date: Wed, 08/26/2020 - 9:19am Hydro expansion another step in grid improvement Alaska Journal of Commerce By: Elwood Brehmer (/authors/elwood-brehmer), Homer Electric Association Power Production Manager Bob Day (left) explains the mechanics of the Bradley Lake powerhouse turbines to Golden Valley Electric Association President John Burns, AEA board member Albert Fogle and Seward City Manager Scott Meszaros by showing o spare parts. The West Fork Upper Battle Creek Diversion Project o cially opened Aug. 27 will add more water to manmade Bradley Lake and allow facility managers to increase power production by about 10 percent towards the powerhouse’s nameplate production capacity of 120 megawatss. (/) Advertisement A small valve opened in a remote mountain valley at the head of Kachamek Bay sending a stream of water downhill that will eventually become low-cost power for places as far away as Fairbanks. The Alaska Energy Authority started owing water through its West Fork Upper Battle Creek Diversion Project Aug. 25. The $47 million project will increase the amount of water in nearby Bradley Lake, in-turn increasing the practical power production capacity of the AEA-owned Bradley Lake Hydro Project by about 10 percent, according to AEA project manager Bryan Carey. Already the largest hydro plant in the state, Bradley annually produces about 380,000 megawatt- hours of power for the six electric utilities in Alaska’s Railbelt. The reliable supply of glacial-fed “fuel” stored behind the Bradley dam can be used by the utilities to manage the variable portion of their electric load and optimize operation of their gas- red generators. “We want our gas turbines to be at the sweet-spot” for maximum e ciency, Homer Electric Association Board of Directors Vice President David Thomas said during a tour of the new facilities. “You could argue Bradley Lake is the largest battery in the state.” The Bradley Lake turbines are rated to produce up to 120 megawatts of power at any given time but constraints at both ends of the project have limited its average production to about 44 megawatts. And because Bradley power costs just 4 cents per kilowatt-hour to produce, according to AEA — making it some of the cheapest power in the state — more is better, said Tony Izzo CEO of Matanuska Electric Association. Izzo also chairs the Bradley Lake Project Management Committee. The hydro project is operated by HEA under a contract with AEA. Feedstock natural gas for the utility’s other power plants calculates out to a cost of about 8 cents per kWh. “It’s pretty easy to see the bene t (of Bradley Lake) when you look at the numbers,” Izzo said. MEA is in the middle of studies to see how much variable renewable power its grid can accept and identify some of the prime areas for renewable energy generation in its service area. The Battle Creek project will add about 37,300 megawatt-hours of production capacity to Bradley by diverting glacial water from the West Fork of Upper Battle Creek and piping it nearly 2 miles to the manmade lake; enough power to light about 5,000 Railbelt homes, according to AEA. The 60-inch high-density polyethylene pipe buried largely alongside the project access road installed to carry the water from the lake can handle up to 600 cubic feet of water per second, equivalent to a small river, according to Carey. The diversion stream was owing at about 60 cubic feet per second, or cfs, on Aug. 27, he said. -60%-39%-68% -32%-62%-79% Updated: 08/27/2020 - 11:40am Being short and steep glacial drainages Bradley and Battle creeks do not have many salmon — which makes them good candidates for harnessing their water — but they do have some. AEA is required to keep an average minimum ow of 15 cfs in Battle Creek to maintain sh habitat. Carey acknowledged the project will likely change the sh habitat some; the stabilized ow is likely to bene t salmon such as kings that spawn mid-stream, but could challenge others. He said Battle Creek was nished on time, but slightly over budget — AEA previously pegged it at about $44 million — but Izzo noted it was completed within the parameters of the original nancing plan and small overruns are often a fact of life for that type of work. “On a remote project in the mountains, that’s not exceptional,” Carey said. At about $16 million, the three miles of new road needed to reach the project accounted for approximately 40 percent of the overall cost of the work, which was led by Anchorage-based Orion Marine Contractors. AEA and utility o cials noted the recent agreement to purchase of the 39-mile Soldotna-to-Quartz Creek segment of transmission line by the authority from HEA is another small step along with the commissioning of the Battle Creek project to spur more e cient power production and distribution Railbelt-wide. The “S-Q” transmission line was out of service for about four months last year following damage from the Swan Lake re, which cost ratepayers to the north about $11 million by cutting o access to Bradley Lake and necessitating more gas- red power. Even when the 115-kilovolt line is operational, it has “line loss,” or the amount of power lost during transmission, of about 40 percent at maximum capacity, according to AEA Engineering Director Kirk Warren. The goal is to eventually upgrade the S-Q line under AEA’s ownership with nancial support from the utilities that will bene t. Warren estimated upgrading the S-Q line to 230 kilovolts would cost $800,000 or more per mile based on previous work, but it would also allow the utilities to access more Bradley power without losing nearly as much of it to the ether. “It’s part of the overall continued e ort to reduce rates or keep rates down and increase the use of renewables,” Izzo said. Elwood Brehmer can be reached at elwood.brehmer@alaskajournal.com (mailto:elwood.brehmer@alaskajournal.com). Alaska Journal of Commerce 300 W. 31st Avenue Anchorage, AK 99503 813 West Northern Lights Boulevard, Anchorage, Alaska 99503 T 907.771.3000 Toll Free 888.300.8534 F 907.771.3044 REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG RGYAUTHORITY.ORG PRESS RELEASE Brandy M. Dixon Public Engagement Officer (907) 771-3078 FOR IMMEDIATE RELEASE August 27, 2020 AEA Completes Battle Creek Diversion Project at Bradley Lake Hydro Milestone accomplishment increases annual energy output of state’s largest hydroelectric facility (Anchorage) – On Tuesday, August 25, the Alaska Energy Authority (AEA) held a ribbon cutting ceremony at the Bradley Lake Hydroelectric Project near Homer to celebrate its completion of the West Fork Upper Battle Creek Diversion project. The project diverts runoff from Battle Creek into Bradley Lake expanding the state’s largest hydroelectric facility. Construction of the $47 million project began in May 2018. It includes three miles of road, a concrete diversion dam, and a five foot diameter pipeline under the road to carry water from its source to Bradley Lake. By diverting Battle Creek water into the lake, the Bradley Lake Hydroelectric Facility will see an increase of about 10 percent in its energy production capacity. Once operational, the project will produce 37,000 megawatts hours of energy annually, which equates to providing power for 5,000 homes. “For those of us who believe that hydroelectric power is a renewable energy source, this project will increase the use of renewable energy in our state. This use of renewable energy aligns well with our state’s aspirational goal to achieve a higher percentage of renewable energy in our future,” said AEA Board Chair Dana Pruhs. “Hydroelectric power is Alaska's largest source of renewable energy, supplying nearly a quarter of the state’s electricity in an average water year,” said AEA Executive Director Curtis W. Thayer. “The diversion of water from Battle Creek to behind the Bradley Lake dam will allow even more energy at lower cost to be produced and delivered to ratepayers, reducing the cost of energy in Alaska.” Managed by AEA and paid for by Railbelt utility customers, this project is the largest improvement to the state-owned Bradley Lake Hydroelectric Facility since it began commercial operation in September 1991. The Alaska Energy Authority is a public corporation of the state. Its mission is to reduce the cost of energy in Alaska. ### http://www.newsminer.com/news/alaska_news/hydro-expansion-at-bradley-lake-another-step-in-grid- improvement/article_69168960-e8b7-11ea-bbc5-8b94a8467baf.html Hydro expansion at Bradley Lake another step in grid improvement Elwood Brehmer, Alaska Journal of Commerce Aug 27, 2020 A small valve opened in a remote mountain valley at the head of Kachemak Bay sending a stream of water downhill that will eventually become low-cost power for places as far away as Fairbanks. The Alaska Energy Authority started flowing water through its West Fork Upper Battle Creek Diversion Project Aug. 25. The $47 million project will increase the amount of water in nearby Bradley Lake, in turn increasing the practical power production capacity of the AEA-owned Bradley Lake Hydro Project by about 10 percent, according to AEA project manager Bryan Carey. Already the largest hydro plant in the state, Bradley annually produces about 386,000 megawatt- hours of power for the six electric utilities in Alaska's Railbelt. The reliable supply of glacial-fed "fuel" stored behind the Bradley dam can be used by the utilities to manage the variable portion of their electric load and optimize operation of their gas-fired generators. "We want our gas turbines to be at the sweet-spot" for maximum efficiency, Homer Electric Association Board of Directors Vice President David Thomas said during a tour of the new facilities. "You could argue Bradley Lake is the largest battery in the state." The Bradley Lake turbines are rated to produce up to 120 megawatts of power at any given time but constraints at both ends of the project have limited its average production to about 44 megawatts. And because Bradley power costs just 4 cents per kilowatt-hour to produce, according to AEA — making it some of the cheapest power in the state — more is better, said Tony Izzo CEO of Matanuska Electric Association. Izzo also chairs the Bradley Project Management Committee. The hydro project is operated by HEA under a contract with AEA. Feedstock natural gas for the utility's other power plants calculates out to a cost of about 8 cents per kWh. "It's pretty easy to see the benefit (of Bradley Lake) when you look at the numbers," Izzo said. MEA is in the middle of studies to see how much variable renewable power its grid can accept and identify some of the prime areas for renewable energy generation in its service area. The Battle Creek project will add about 37,300 megawatt-hours of production capacity to Bradley by diverting glacial water from the West Fork of Upper Battle Creek and piping it nearly 2 miles to the manmade lake; enough power to light and heat about 5,000 Railbelt homes, according to AEA. The 60-inch high-density polyethylene pipe buried largely alongside the project access road installed to carry the water from the lake can handle up to 600 cubic feet of water per second, equivalent to a small river, according to Carey. The diversion stream was flowing at about 60 cubic feet per second, or cfs, on Aug. 27, he said. Being short and steep glacial drainages Bradley and Battle creeks do not have many salmon — which makes them good candidates for harnessing their water — but they do have some. AEA is required to keep an average minimum flow of 15 cfs in Battle Creek to maintain fish habitat. Carey acknowledged the project will likely change the fish habitat some; the stabilized flow is likely to salmon such as kings that spawn mid-stream, but could challenge others. He said Battle Creek was finished on time, but slightly over budget — AEA previously pegged it at about $44 million — but Izzo noted it was completed within the parameters of the original financing plan and small overruns are often a fact of life for that type of work. "On a remote project in the mountains, that's not exceptional," Carey said. At about $16 million, the three miles of new road needed to reach the project accounted for approximately 40 percent of the overall cost of the work, which was led by Anchorage-based Orion Marine Contractors. AEA and utility officials noted the recent agreement to purchase of the 39-mile Soldotna-to-Quartz Creek segment of transmission line by the authority from HEA is another small step along with the commissioning of the Battle Creek project to spur more efficient power production and distribution Railbelt-wide. The "S-Q" transmission line was out of service for about four months last year following damage from the Swan Lake fire, which cost ratepayers to the north about $11 million by cutting off access to Bradley Lake and necessitating more gas-fired power. Even when the 115-kilovolt line is operational, it has "line loss," or the amount of power lost during transmission, of about 40 percent at maximum capacity, according to AEA Engineering Director Kirk Warren. The goal is to eventually upgrade the S-Q line under AEA's ownership with financial support from the utilities that will benefit. Warren estimated upgrading the S-Q line to 230 kilovolts would cost $800,000 or more per mile based on previous work, but it would also allow the utilities to access more Bradley power without losing nearly as much of it to the ether. "It's part of the overall continued effort to reduce rates or keep rates down and increase the use of renewables," Izzo said. How remote Arctic communities can tap into river power Northern communities like Igiugig, Alaska, are increasingly looking to renewable energy instead of diesel to power microgrids. Arctic renewable energy has the potential for a global impact, but stories of energy transformation in the region are often overshadowed. For the month of September, ArcticToday is launching a special focus on renewable energy in the Arctic and this piece is part of that coverage. Find the full series here, or subscribe to our daily newsletter and follow us on Facebook and Twitter to be the first to read new installments. By Melody Schreiber -September 3, 2020 1 of 4 An aerial view of Igiu This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settings ACCEPT T he river ripples over the turbine, which spins like a helix between bright blue pontoon floats. But it’s not floating. The electricity-generating rig is all underwater — anchored about 15 feet beneath the surface. The Kvichak River in southwestern Alaska hosts the largest sockeye salmon run in the world, bringing in millions of dollars from commercial fishing and attracting sport fishers to one of the premier locations in the state. The river has provided subsistence for Alaska Native peoples for thousands of years. And now it’s also home to a turbine that generates energy for Igiugig, an Alaska Native village of 70 people on the river’s banks. Iguigig is well south of the Arctic Circle, but the village is similar in many ways — including its energy situation — to remote Arctic settlements elsewhere in Alaska, and in northern Canada, Russia and Greenland. “We actually find everything we need right on our front door,” AlexAnna Salmon, president of the tribal council in Igiugig, told ArcticToday. “We don’t have camps that we go to and have to subsist from; we do it right where we live.” The river has sustained life in Igiugig for generations, and now it’s providing the community with renewable energy. The RivGen technology, developed by the Maine-based Ocean Renewable Power Company, generates electricity from tidal and river currents without using a dam. Energy costs in the Arctic and sub-Arctic are among the highest in the world. Remote communities in the Arctic often run on diesel-powered microgrids, not connected to larger electricity grids. Bringing fuel into communities and running the microgrids can be costly. In Igiugig, diesel energy costs about 80 cents per kilowatt hour for residential and 91 cents per kilowatt hour for commercial energy, Salmon said. That’s six times higher than the average residential rate in the United States of 13.28 cents. In Alaska, the average is 22.26 cents.This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settings ACCEPT The high cost of diesel threatens people’s ability to continue living in Igiugig, Salmon said. “If we could bring the cost of electricity down, or at least stabilize it, then we can continue to enjoy our high quality of life.” Transporting diesel fuel can also be dangerous: There’s the risk of fuel spills as well as the effects of emissions from burning fossil fuels. Communities like Igiugig are witnessing firsthand the effects of human-caused climate change, and that was a big motivation in finding more sustainable sources of energy, Salmon said. “We are a self-sufficient village with strong cultural and environmental values,” she said. “Bringing diesel in, risking all of the diesel transportation and then burning them in our generators, did not fall into the mission statement of upholding our environmental values.” The shift toward renewable energy in this remote village has been a long, expensive and complicated process. Igiugig’s journey began in 2004, when the village applied for an Alaska Energy Authority renewable energy grant. But the $750,000 grant would have all been spent on baseline studies and environmental reviews before any device could even be deployed, Salmon said. “One million dollars can’t even get you to any kind of renewable energy out here in rural Alaska,” she said. Next, Igiugig applied for U.S. Department of Energy efficiency grants, and several renewable energy companies competed for the award. ORPC rose to the top. “We liked how they worked — they turned to the local knowledge and collaborated,” Salmon said. “They realized we’ve lived here on the river for 10,000 years, so we have innate ingenuity when it comes to working in these conditions.” 1 of 4 This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settings ACCEPT The first two versions of the turbines were deployed in the summer months of 2014 and 2015. After years of polishing the prototypes, including over the summer of 2019, ORPC officially launched the first commercial river turbine in Igiugig in November 2019, making this the first over-wintering river power project in the North. In all, the project has cost $4.6 million, and the first turbine is capable of generating about half of the electricity Igiugig needs. The ORPC turbine design was originally recommended by the U.S. Navy, John Ferland, ORPC’s president, told ArcticToday. “We’re not a windmill in the water or a giant fan in the water,” Ferland said. “The shape of it is more akin to a paddle wheel.” That design helps them adapt to different sites, including shallower water. Renewable energy projects in the Arctic must withstand some of the most extreme conditions on the planet, including wind, ice and snow as well as months with and without sunlight. Deplo This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settings ACCEPT The river turbine operating in the Kvichak River in January 2020. (Igiugig Village Council) The RivGen’s first test with ice came in January: coated in frazil ice, the turbine floated up to the surface of the river. But the anchors held, and after a few days of warmer temperatures, the turbine settled back down in the river and continued working normally. In fact, the underwater environment can help the equipment withstand some of the harsher elements, Ferland said. “In the North, it’s actually a good idea to be underwater,” he said. On land, there are wildly fluctuating temperatures and weather. But in the water, temperatures tend to stay in a narrower band. Unlike solar or wind power, current power is not tied to weather or seasonal changes. “Because the river’s running all the time,” he said. “It’s a great technology for the northern latitudes to have.” This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settings ACCEPT River turbine at project site prior to re-deployment on October 6, 2019. (Ocean Renewable Power Company) Benjamin Loeffler, research manager at the Pacific Marine Energy Center, was part of the team at Alaska Center for Energy and Power, at the University of Alaska Fairbanks, that helped Iguigig conduct environmental assessments and other studies. The Kvichak River is a little unusual because the water runs clear from Lake Iliamna, Alaska’s largest freshwater lake. “Most Alaska rivers are pretty turbid; they have either glacial silt or sediment in them,” Loeffler told ArcticToday. Igiugig is a good place to test and develop river technology like these turbines before making the final product more rugged to withstand debris and turbidity, he said. ACEP also has a permanent test site on the Tanana river near Nenana, in Interior Alaska, where a handful of other river turbine developers have been testing their devices’ abilities to withstand these conditions. Ice coming in and out of rivers can also be a challenge that will need to be overcome in some places, he said. Another challenge is integrating renewable energy into diesel microgrids. The grids need a baseline of energy to operate, and without good batteries and energy storage for the times renewable energy is temporarily interrupted, it can cause the systems to run poorly or inefficiently. This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settings ACCEPT “It’s harder to do things in remote Arctic locations, but the incentives and the need is higher also, and the cost of electricity you’re competing against is higher,” he said. Loeffler sees systems like this as very promising for northern communities. About 200 Alaska communities operating on microgrids are situated on or near rivers, he said. “It’s hard not to stand on the riverbank and see all that water moving by, and — man, there’s a lot of energy there. A lot of potential.” Many communities with marine resources, however, aren’t able to build dams, for economic, environmental, or geographic reasons. That’s where the river turbines come in — and they can be steadier and more predictable than other renewable sources, such as solar and wind, Loeffler said. The RivGen Power System operating in the Kvichak River, Alaska, April 2020 (Igiugig Village Council) Sen. Lisa Murkowski, a Republican from Alaska, told ArcticToday last fall that projects like this make Alaska the “vision” for renewable energy all over the world, particularly in remote, high- This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settings ACCEPT cost areas like the Arctic. “We’ve got more microgrids in Alaska than anywhere else, I’m told, in the world,” she said. “We’re the innovators, we’re the pioneers, we’re who everybody is looking at. Whether you’re looking for application in the Arctic or what you might be looking to do in other remote, isolated high-cost areas, Alaska is the go-to place.” After Rick Perry, the former U.S. energy secretary, praised the Arctic’s oil and gas potential, Murkowski pointed out that the North is also leading with renewable innovation. “The technologies that we’re building out, that gives us that edge,” she said. “We’ve got something to share with people; we’ve got benefits that we can export.” Ferland says that other remote northern communities with marine resources want to see how the turbine in Igiugig fares. “We’re hopeful that the project in Igiugig will be that example,” he said, “that shows what can be done.” Salmon put it this way: “If we can make this work on the Kvichak River in rural Alaska, then it can be deployed anywhere in the world.” The turbine is placed deep enough in the river to allow boats to pass over it, and the studies done in Igiugig so far have shown no adverse effects on marine life. The larger fish swim around or above the turbine, and smaller fish can even swim through it. “We are a salmon-based society,” Salmon said. “We had to make sure first and foremost, that this device did not harm our salmon — either the incoming salmon or the out-migrating smolt.” Any social or economic developments in Igiugig must be compatible with their subsistence way of life, she said. Environmental impact studies to make sure turbines would not affect marine life took time and money. Igiugig also purchased underwater video cameras to monitor how fish interacted with the turbine. “But now we can confidently say that no fish were harmed in all the deployments that we’ve done so far,” Salmon said. This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settings ACCEPT The cost of ensuring there weren’t adverse environmental effects came on top of the project’s mobilization costs — including shipping and installing the turbine — which Salmon called “exorbitant.” That can be a major challenge to building renewable systems in the North. Refining a project like this was complicated, from figuring out what kind of anchor works best in the river to using local equipment and knowledge in installing and maintaining turbines. But relying on local equipment and training local operators was a key part of the project. “Our tribe has always been progressive and forward-thinking in how we can continue to live in our village independently, self-sufficiently. And for us to do that, we need to not be reliant on the outside world for all our needs,” Salmon said. “We need to be producing our own energy with the tools we have.” Igiugig hasn’t only focused on the river power. They’ve also invested in other sustainable energy projects, from solar panels to energy audits on buildings. “We don’t want all our eggs in one basket,” Salmon said. “We don’t think that’s security.” The “ultimate goal” is transitioning to complete energy independence based on renewables, she said. Paradoxically, because Igiugig remains largely closed down due to COVID-19 concerns, their energy needs have plummeted for the time being. However, they’re still planning to expand capacity for when they reopen. Later this year, ORPC will install smart grid electronics and an energy storage system. And in 2021, they’ll lower a second RivGen into the river; the two devices together should provide about 90 percent of Igiugig’s energy needs, relegating diesel generation to backup only. “We are small, but if the smallest person can do it in the harshest conditions, then it can be done anywhere,” Salmon said. This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settings ACCEPT page 5 l EXPLORATION & PRODUCTION l EXPLORATION & PRODUCTION Vol. 25, No. 36 • www.PetroleumNews.com A weekly oil & gas newspaper based in Anchorage, Alaska Week of September 6, 2020 • $2.50 see NPR-A LAWSUITS page 9 see INSIDER page 7 Optimism on horizon for Alaska economy, oil price recovering New NPR-A plan draws two suits from environmental groups Groups of environmental organizations have filed two lawsuits in the federal District Court in Alaska, challenging the legality of the Bureau of Land Management’s final environmental impact statement for a revised integrated activity plan for the National Petroleum Reserve-Alaska. BLM proposes opening more NPR-A land for oil and gas exploration and development. The environ- mental organizations argue that the proposal does not adequately consider potential environmental degradation resulting from the opening up of some environmentally sensitive areas in the reserve. Generally, in lawsuits of this nature the court will defer to the technical expertise of a government agency in making its deci- sions. Rather, the court will tend to consider whether that expertise was adequately and appropriately applied, and whether the agency see BATTLE CREEK page 8 AEA completes Battle Creek project The Alaska Energy Authority has completed the Battle Creek diversion project, a project designed to increase the capacity of the Bradley Lake powerhouse in the southern Kenai Peninsula by about 10%. On Aug. 25 the agency held a ribbon cutting ceremo- ny at Bradley Lake to celebrate the project completion. The Bradley Lake facility reliably feeds some of the cheapest power into the Alaska Railbelt electrical system. The Battle Creek project, which began in May 2018, involved the construction of a concrete dam, enabling the diversion of water from the west fork of upper Battle Creek through a 1.7-mile buried pipeline and a 1,000-foot canal to Bradley Lake. A diversion man- agement plan will ensure the maintenance of an adequate flow of water in Battle Creek below the diversion dam. The project will result in the annual production of 37,000 megawatts of energy see CHASING GREEN page 10 Chasing green: Canada’s leading oil producers playing catchup Husky Energy, controlled by Hong Kong multi-billionaire Li Ka-shing, is the latest of Canada’s major oil producers to climb on the green bandwagon. The company is now linking its output of greenhouse gas emissions to compensation as part of its strategy to reduce car- bon by 25% over the next five years. The move comes at a time when fossil-fuel producers around the globe are competing for increasingly tight capital dollars as investors cave in to pressures from environmental, social and government organizations. It coincides with the release in Canada of a multi-industry ANWR seismic under SAE restruct? Harpoon wildcat source unknown SEISMIC CONTRACTOR SAExploration’s recent Chapter 11 bankruptcy and its proposed restructuring plan is geared to allow SAE to conduct business as usual. This suggests, but does not guarantee, that SAE will be conduct- ing its 3D seismic survey in the 1002 area of the Arctic National Wildlife Refuge this com- ing winter as planned, which would might be in advance of the first of the two congression- ally mandated federal oil and gas lease sales in the area, neither of which has yet been scheduled. SAE, Arctic Slope Regional Corp. and Kaktovik Inupiat Corp. in the Inupiat Geophysical Partnership are behind the Big banks back down Under scrutiny for redlining against the Arctic for oil and gas investments By STEVE SUTHERLIN Petroleum News In December, the Goldman Sachs Group Inc. announced it would decline to finance any new Arctic oil exploration or development. Over the ensuing months, major U.S. and international banks jumped aboard the bandwagon. The banks include JPMorgan Chase & Co., Citigroup Inc., Wells Fargo & Co. and Swiss bank UBS. But now the tune has changed, and as the wagon careens into federal scrutiny, some players have stopped tooting their horns and would like to disembark, U.S. Sen. Dan Sullivan, R-Alaska, said in keynote remarks to the Resource Development Council Aug. 27. “I’ve called a lot of the chairmen and CEOs of these banks; the good news is some — some of the biggest — are not gonna follow suit,” Sullivan said. The band of banks thought the collabo- ration would play well with climate change activists, but the ensemble struck sour notes with federal banking regulators. Sullivan said he has been “reaching out to each one of those regulators saying, hey, these banks ... I read the law; I read the Community Reinvestment Act; I don’t think Mustang gets some space AIDEA delays oil field sale 2 months; DNR signs 1 year lease rental decrease By KAY CASHMAN Petroleum News T he working interest owners of the Mustang oil field have gotten some wiggle room from two Alaska agencies. The public auction of the field that was sched- uled to be held in Barrow on July 31 has been rescheduled for Sept. 23, per Karsten Rodvik, Alaska Industrial Development and Export Authority’s external affairs officer. Lender AIDEA is selling the property to the highest bidder to satisfy all indebtedness, together with any interest and all necessary costs and expenses. Mustang, which is in the Southern Miluveach unit adjacent to the southwest edge of the Kuparuk River unit, is the first oil field on Alaska’s North Slope to have been taken from discovery to pro- duction by a small independent oil company — original operator and minority owner Brooks Range Petroleum Corp., or BRPC. BRPC drilled the Mustang discovery well, North Tarn 1A, in January 2012. The field is thought to hold 21.2 million barrels of proven oil in place. Some relief from DNR On Aug. 27 the Alaska Department of Natural Resources’ Division of Oil and Gas approved in see BANK SCRUTINY page 10 see MUSTANG SALE page 11 DAN SULLIVAN l FINANCE & ECONOMY Shell in game Files for West Harrison Bay state unit to hold leases, targeting Nanushuk By KAY CASHMAN Petroleum News L ate Sept. 2 the Alaska Department of Natural Resources’ Division of Oil and Gas posted a public notice saying Shell Offshore Inc. filed an application Aug. 27 to form the West Harrison Bay unit consist- ing of 18 leases in West Harrison Bay in state waters and two Nikaitchuq North leases farther east in federal waters. The 18 leases, totaling 86,400 acres, are approximately 34 miles north- west of the ConocoPhillips-operated Colville River unit, directly north of Willow and northwest of the Oil Search-operated Pikka unit. Shell is 100% holder of the leases but expects to bring in a partner in 2021 to share the risks of exploration and possible development, designating its partner as operator. Shell’s West Harrison Bay leases were acquired in 2012 “because prospectivity was recognized in the Brookian and Beaufortian megasequences. The company redirected focus to these leases in 2017 and generated five stand-alone prospects in the Nanushuk formation and multiple leads in both the Torok formation and Jurassic Alpine-like plays,” the application said. It was filed by Kyle W. Parker see SHELL RETURNS page 8 PETROLEUM NEWS • WEEK OF SEPTEMBER 6, 2020 9 ADVERTISER PAGE AD APPEARS ADVERTISER PAGE AD APPEARS ADVERTISER PAGE AD APPEARS Companies involved in Alaska’s oil and gas industry Advertiser Index All of the companies listed above advertise on a regular basis with Petroleum News A ABR Inc. Acuren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 AES Electric Supply, Inc Afognak Leasing LLC Ahtna, Inc. Airgas, an Air Liquide company Airport Equipment Rental Alaska Dreams Alaska Frontier Constructors (AFC) . . . . . . . . . . . . . . . . . . . .8 Alaska Marine Lines Alaska Materials Alaska Railroad Alaska Steel Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Alaska Tent & Tarp Alaska Textiles Alaska West Express American Marine Arctic Controls ARCTOS Alaska, Division of NORTECH Armstrong AT&T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Avalon Development B-F Bombay Deluxe BrandSafway Services Brooks Range Supply C & R Pipe and Steel Calista Corp. Carlile ChampionX Chosen Construction Colville Inc. Computing Alternatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 CONAM Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Cruz Construction Denali Universal Services (DUS) . . . . . . . . . . . . . . . . . . . . . .4 Doyon Anvil Doyon Associated Doyon Drilling Doyon, Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 EEIS Consulting Engineers, Inc. Egli Air Haul exp Energy Services F. R. Bell & Associates, Inc. Fairweather Flowline Alaska Fluor Frost Engineering Service Co. – NW Fugro G-M GCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 GMW Fire Protection Greer Tank & Welding Guess & Rudd, PC HDR Engineering, Inc. ICE Services, Inc. Inlet Energy Inspirations Judy Patrick Photography Little Red Services, Inc. (LRS) LONG Building Technologies Lounsbury & Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Lynden Air Cargo Lynden Air Freight Lynden Inc. Lynden International Lynden Logistics Lynden Transport M-W Drilling Maritime Helicopters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Matson N-P Nabors Alaska Drilling NANA Worley Nature Conservancy, The NEI Fluid Technology Nordic Calista North Slope Telecom Northern Air Cargo Northern Solutions NRC Alaska, a US Ecology Co. Oil Search . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Pacific Power Group PND Engineers, Inc. PENCO Petroleum Equipment & Services, Inc. PRA (Petrotechnical Resources of Alaska) Price Gregory International Q-Z Raven Alaska – Jon Adler Resource Development Council SALA Remote Medics Security Aviation Shoreside Petroleum Soloy Helicopters Sourdough Express Strategic Action Associates Summit ESP, A Halliburton Service Tanks-A-Lot The Local Pages TOTE – Totem Ocean Trailer Express Weston Solutions Wolfpack Land Co. followed the correct procedures, as required by the relevant laws. Rework of 2013 IAP The existing IAP for the NPR-A, issued in 2013 under the Obama administration, made 11.8 million acres of the 23 million- acre reserve available for oil and gas leasing. The plan placed some large environmentally sensitive areas off limits, including areas around Teshekpuk Lake, Smith Bay and Admiralty Bay in the northern part of the reserve. These more northerly areas span a region now thought to be particularly prospective for new oil discoveries. However, areas such as Teshekpuk Lake and its surrounds are important breeding grounds for waterfowl and support Arctic wildlife such as caribou. As part of the Trump administration’s efforts to support US oil and gas production, in May 2017 then Interior Secretary Ryan Zinke ordered a rework of BLM’s NPR-A plan. BLM said that, in reworking the plan, it would be responding to requests from the State of Alaska and the North Slope Borough to increase opportunities in the region, taking into account new technolo- gies and increased knowledge of the area. A new plan could enable greater economic development while continuing to protect important environmental and subsistence resources, BLM said. In June of this year BLM published its final EIS for its new IAP. The preferred option in the new plan would open an addi- tional 7 million acres for energy develop- ment. The Teshekpuk Lake special area would be opened, but with stipulations for no surface occupancy and with timing limi- tations for activities. A core part another spe- cial area, the Utukok River uplands special area, would not be available for leasing and new infrastructure, although there would be corridors in this special area available for leasing but with timing limitations and with some infrastructure constraints. Challenge within 60 days In one of the lawsuits challenging the new final EIS, the four environmental organizations filing the lawsuit told the court that the timing of the filing reflected a requirement that any legal challenge to the FEIS must be brought to court within 60 days of the availability of the FEIS. The organizations said that, following BLM’s record of decision on the FEIS, they plan to submit an amended filing, detailing claims made in their initial filing. Those initial claims essentially say that the FEIS does not analyze or describe the full scale of the potential impacts of the plan on the NPR-A, including the consequences of holding annual oil and gas lease sales, and the impacts on the climate and the reserve’s nat- ural resources. All options, other than the no-action alternative, in the new NPR-A plan would allow the expansion of oil and gas leasing in the reserve, while not recognizing that recent scientific information indicates that the reserve deserves more protection rather than less, the filing says. All of the options remove protections for the Colville River Special Area. And the FEIS fails to consider the climate change impacts of carbon emis- sions from the use of oil potentially pro- duced from the areas opened in the plan’s preferred option, the filing says. Moreover, the FEIS includes changes to the draft EIS that were not subject to public review or comment, and that do not appear to respond to public comments on the draft document, the filing says. The environmental organizations also question a statement that the plan FEIS will fulfill the NEPA requirements for the hold- ing of lease sales in the NPR-A, at least through December 2039. Questions of legality The second court challenge, submitted by six other environmental organizations, argues that the FEIS contravenes NEPA, the Administrative Procedures Act and the National Petroleum Reserve Production Act — the NPRPA is the statute specifying the legal framework for BLM’s management of the NPR-A. Under the terms of the NPRPA, special areas such as the Teshekpuk Lake and Colville River Special Areas have been designated as requiring maximum environ- mental protection, the filing says. The filing lists a number of recent oil dis- coveries and developments in or adjacent the northern part of the NPR-A, including ConocoPhillips’ Greater Mooses Tooth 1 and 2 developments, ConocoPhillips Willow discovery and Caelus Energy’s Smith Bay discovery. With significant oil interest in the region, a 2019 NPR-A lease sale attracted a large number of bids, includ- ing bids on land tracts to the south of Teshekpuk Lake, the filing says. Numerous commenters have expressed concerns with the new EIS and have argued that BLM has not conducted an adequate NEPA analysis: The agency needs to consid- er a reasonable range of alternatives, and to protect the special areas in the NPR-A as mandated by the NPRPA, the filing says. Thus BLM’s inadequate analysis violates NEPA, the NPRPA and the Administrative Procedures Act, the appellees claim. —ALAN BAILEY continued from page 1 NPR-A LAWSUITS goal to achieve a higher percentage of renewable energy in our future.” “Hydroelectric power is Alaska’s largest source of renewable energy, sup- plying nearly a quarter of the state’s elec- tricity in an average water year,” said AEA Executive Director Curtis Thayer. “The diversion of water from Battle Creek to behind the Bradley Lake dam will allow even more energy at lower cost to be produced and delivered to ratepay- ers, reducing the cost of energy in Alaska.” While managed by AEA, the project will ultimately be paid for through elec- tricity rates charged to utility customers in the Railbelt. AEA was able to make use of low cost Clean Renewable Energy Bonds, authorized by the Internal Revenue Service, for part of the project financing. AEA says that the project is the largest upgrade to the Bradley Lake facil- ity since the facility went into operation in September 1991. The facility is owned by AEA and operated under contract by Homer Electric Association. The Bradley Project Management Committee, consist- ing of representatives of the Railbelt elec- tric utilities, oversees the operation of the system. —ALAN BAILEY continued from page 8 BATTLE CREEK