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HomeMy WebLinkAboutAugustine Island Interconnection Feasibility Study Report - FINAL - Dec 2024 - REF Grant 7015024 AUGUSTINE ISLAND INTERCONNECTION FEASIBILITY STUDY REPORT December 2024 Prepared for Alaska Electric & Energy Cooperative, Inc., a subsidiary of Homer Electric Association 3977 Lake Street Homer, Alaska 99603 Prepared by 3003 Minnesota Drive, Suite 302 Anchorage, Alaska 99503 With partners: Augustine Island Interconnection Feasibility Study Report ii December 2024 TABLE OF CONTENTS EXECUTIVE SUMMARY ....................................................................................................ES-1 1. SCOPE OF WORK................................................................................................................1 1.1 Background and Assumptions ......................................................................................1 1.2 Feasibility Study Approach ..........................................................................................2 1.3 Report Structure ...........................................................................................................2 2. ROUTING OPTIONS ...........................................................................................................3 2.1 Subsea Cable Routing ..................................................................................................3 2.2 Onshore Routing ...........................................................................................................5 2.2.1 Augustine Island Routing .................................................................................6 2.2.2 Anchor Point Option 1: North of Point to Anchor Point Substation ................7 2.2.3 Anchor Point Options 2 and 3: South of Point to Anchor Point Substation ....7 2.3 Anchor Point Routing Discussion ................................................................................7 3. PRELIMINARY ENGINEERING ANALYSIS ...................................................................9 3.1 Selection of HVAC or HVDC Subsea Transmission ...................................................9 3.1.1 HVAC Subsea Design ....................................................................................10 3.1.2 HVDC Subsea Design ....................................................................................10 3.1.3 HVAC Versus HVDC Discussion ..................................................................10 3.1.4 Subsea Cable Energization/Black Start ..........................................................11 3.2 Cable Installation ........................................................................................................12 3.2.1 Subsea Cable Installation ...............................................................................12 3.2.2 Nearshore Cable Installation ..........................................................................13 3.3 Interconnection Substations .......................................................................................15 3.3.1 Augustine Island Substation (Plant 13.8kV to 115kV) ..................................15 3.3.2 Anchor Point Substation (Interconnection 115kV to 13.8kV) .......................16 3.4 Overhead Transmission ..............................................................................................18 4. PROJECT COSTS AND ECONOMICS .............................................................................20 4.1 HVAC Versus HVDC Costs ......................................................................................20 4.2 Budgetary Cost Estimate ............................................................................................21 4.3 Tax Incentives and Funding Opportunities ................................................................21 5. PERMITTING AND LICENSING EVALUATION ..........................................................24 5.1 Land Lease or Acquisition Needs ..............................................................................24 5.1.1 Augustine Island Surface ................................................................................24 5.1.2 Cook Inlet .......................................................................................................24 5.1.3 Anchor Point Cable Landing ..........................................................................25 5.1.4 Anchor Point Transmission Alignment: Option 1 ..........................................25 Augustine Island Interconnection Feasibility Study Report iii December 2024 5.1.5 Anchor Point Transmission Alignment – Options 2/3 ...................................26 5.2 Preliminary Permitting Requirements List .................................................................26 6. ENVIRONMENTAL SCREENING ...................................................................................27 6.1 Overall Scoring of Routing Options ...........................................................................27 6.2 Specific Environmental Considerations .....................................................................28 7. PROJECT SCHEDULE.......................................................................................................31 8. REFERENCES ....................................................................................................................33 LIST OF TABLES Table 2-1: Summary of Evaluated Routes ...................................................................................... 3 Table 3-1: Major Equipment Needs for Anchor Point Substation Expansion .............................. 16 Table 3-2: Major Equipment Needs for New Anchor Point Substation ....................................... 17 Table 3-3: Quantity of Monopole Towers .................................................................................... 19 Table 4-1: HVAC and HVDC Solution Cost Comparison ........................................................... 20 Table 4-2: Budgetary Cost Summary (HVDC only) .................................................................... 21 Table 4-3: Financing Schedule ..................................................................................................... 23 Table 6-1: Initial Environmental Screening of Routing Options .................................................. 28 Table 6-2: Environmental Considerations .................................................................................... 29 Table 7-1: Conceptual Project Schedule Duration ........................................................................ 31 LIST OF GRAPHICS Graphic 2-1: Elevation Profile Along Proposed Cable Routes ....................................................... 4 Graphic 2-2: Elevation and Slope Profiles at Proposed Landfalls .................................................. 5 Graphic 2-3: Potential Landing Area at Augustine Island Headland ............................................. 6 Graphic 3-1: Simplified Diagram of Design Components ............................................................. 9 Graphic 3-2: Example of a Subsea Service Crossing by a Power Cable ...................................... 13 Graphic 3-3: Example of Nearshore Connection using HDD ...................................................... 14 Graphic 3-4: Sea Stallion 2 Plough Burying Cable Nearshore ..................................................... 14 Graphic 3-5: Simplified Single Line Diagram for the HVDC Voltage Source Converter ........... 15 Graphic 3-6: Design of a Monopole Transmission Tower Suitable for 80 kV ............................. 19 Graphic 6-1: Overarching Topics Evaluated During Environmental Review .............................. 27 Augustine Island Interconnection Feasibility Study Report iv December 2024 LIST OF APPENDICES Appendix A: Routing Maps Figure 1-1: Proposed Routes for Augustine Interconnect Figure 1-2: Proposed Landfall and Overhead Route at Augustine Island Figure 1-3: Proposed Landfall and Overhead Route at Anchor Point – Option 1 Figure 1-4: Proposed Landfall and Overhead Route at Anchor Point – Option 2/3 Figure 2: Wetland and Waterways, Anchor Point Area Figure 3: Land Ownership, Anchor Point Area Appendix B: Electrical Diagrams E-100: 115/34.5kV Existing Substation Power Line Single Diagram E-101: 115/34.5kV Expansion Substation Power Line Single Diagram E-102: 115/34.5kV New Substation Power Line Single Diagram E-103: 115/34.5kV Generation Power Line Single Diagram E-400: 115/34.5kV Substation Expansion Plan E-401: 115/34.5kV Substation Plan E-402: 115/34.5kV Substation Plan Appendix C: Cost Estimate Details Appendix D: Permitting Matrix Appendix E: Environmental Scoring Matrix Appendix F: Project Schedule Appendix G: Supplemental Information Augustine Island Interconnection Feasibility Study Report v December 2024 ACRONYMS AND ABBREVIATIONS µF/km microfarads per kilometer A amperes AAC Alaska Administrative Code AC alternating current AEEC Alaska Electric and Energy Cooperative, Inc. CatEx categorical exclusion DC direct current DNR Alaska Department of Natural Resources EA environmental assessment EIS environmental impact study HDD horizontal directional drilling HEA Homer Electric Association HVAC high voltage alternating current HVDC high voltage direct current IPP independent power producer ITJP intertidal joining pit km kilometer KPB Kenai Peninsula Borough kV kilovolt m meter MACRS modified accelerated cost recovery system mm2 square millimeters MVA megavolt-amps MW megawatt NEPA National Environmental Policy Act ROW right of way Augustine Island Interconnection Feasibility Study Report ES-1 December 2024 EXECUTIVE SUMMARY This Augustine Island Interconnection Feasibility Study Report was prepared by Geosyntec Consultants, Inc., in collaboration with COWI and Qualus, Inc., for the Alaska Electric and Energy Cooperative, Inc. (AEEC). The study evaluates the feasibility of delivering power from a possible future geothermal plant on Augustine Island in Cook Inlet to the western Kenai Peninsula at Anchor Point, Alaska. The study aims to evaluate the benefits and risks, identify permitting and environmental considerations, and develop high-level cost estimates and a schedule for the project. Three potential routing and interconnect options were evaluated. All three options originate from the same location on Augustine Island at the possible future geothermal plant, where a substation would be constructed, and include a subsea high voltage (HV) cable entering Cook Inlet toward Anchor Point. Option 1 subsea cable lands just north of Anchor Point, where the cable would be horizontally directionally drilled (HDD) through the bluff for landfall near the Sterling Highway. The buried cable would transition to overhead transmission along an east- trending path 3.2 km (2 miles) to connect to the existing grid via an expansion to the existing substation at Anchor Point. Options 2 and 3 would land at the same location, just south of Anchor Point on a parcel owned by the Alaska Department of Natural Resources (DNR). The buried cable would transition to overhead transmission east, then north to the Anchor Point substation 8.5 km (5.3 miles). For Option 2, the connection to the existing grid would be via an expansion to the existing substation at Anchor Point. For Option 3, the connection would be via a new substation located adjacent to the existing substation. An analysis of whether the subsea cable should be HV direct current (DC) or HV alternating current (AC) was completed. The basic parameters used in this conceptual design suggest that the distance of the route across Cook Inlet, estimated at 111 km (69 miles), is too long for the HVAC solution to be viable. However, an HVAC solution could be substantially lower cost than an HVDC solution. The cost difference for this project is estimated at over $100M, driven primarily by DC-AC converter stations and more complex design. In future more detailed design efforts, it may be reasonable to further consider whether HVAC is viable for this transmission project. A conceptual design was prepared for an HVDC solution to transmit 70 megawatts (MW) from Augustine Island and connect to the existing 115 kilovolt (kV) transmission system at Anchor Point. The design consists of a new substation and converter station on Augustine Island, an HVDC subsea cable, HVDC overhead transmission lines from cable landfall to the converter station both on Augustine Island and at Anchor Point, and either a new substation at Anchor Point or an expansion of the existing substation at Anchor Point. Significant coordination between government agencies and private landowners will be needed for leases, licenses, and permits. Leases from the Bureau of Ocean Energy Management (BOEM) and DNR are needed for the subsea cable route. At least one existing communications cable, existing oil and gas mineral leases in Cook Inlet, and an existing lease on Augustine Island will be crossed by the conceptual routes that will require coordination with DNR and current lease holders. For both potential overhead line routes in Anchor Point, sections of existing right-of-way are not wide-enough to accommodate a new 115kV transmission line, and new right-of-way is needed across both public and private parcels. Augustine Island Interconnection Feasibility Study Report ES-2 December 2024 At least one permit required will trigger a National Environmental Policy Act (NEPA) review. An environmental assessment will be needed for the project. High level environmental screening of the routing and infrastructure identified the need for archeological evaluation on both the marine and onshore environments, wetland surveys in Anchor Point, seismic and geotechnical evaluations for the entire route, fisheries evaluation including in commercial areas of Cook Inlet, and consideration of bird and marine mammal impacts particularly during construction. The cost estimate for the conceptual design reveals that the subsea cable materials, subsea cable installation, and modular converter stations are the key cost drivers at 85% of total cost. The total project cost is estimated at $225M to $485M for all three evaluated options. The variability in costs associated with negotiating easements and right-of-way to differentiate routing is not well defined at this level of conceptual design. Similarly, the variability in costs associated with changes to the existing Anchor Point microgrid to differentiate substation expansion or substation replacement is not well defined at this level of conceptual design. However, the cost impacts are expected to be less than 5% of the overall project cost. There is potential for a federal tax credit of 30% for qualifying geothermal projects that meet apprenticeship requirements. Assuming that the project footprint is within a qualified energy community, the project may be eligible for an additional 10% tax credit on the total installed cost. A shortened depreciation schedule of 5 years for property may also be applicable for this project. The overall project schedule is estimated at 12 to 16 years. The permitting and engineering design studies will require lead time of approximately 2 years prior to developing a financing approach and final design. Once the project is designed and ready for procurement, large electrical equipment including transformers and converters have a long lead time of approximately 2 to 3 years. Cable installation is anticipated to take 2 years to complete. A financing schedule was prepared to understand the borrowing needs over the project duration. Augustine Island Interconnection Feasibility Study Report 1 December 2024 1. SCOPE OF WORKGeosyntec Consultants, Inc., and our project partners, COWI and Qualus, Inc., have prepared this Augustine Island Interconnection Feasibility Study Report in support of Homer Electric Association (HEA). HEA is evaluating prospective geothermal power delivery from Augustine Island in Cook Inlet to the western Kenai Peninsula at Anchor Point, Alaska. HEA has obtained approval from the Alaska Energy Authority, the Renewable Energy Grant Fund and Recommendation Program administrator, to proceed with a phased evaluation of the renewable energy project addressed herein. In this phase, the goals are to evaluate benefits and risks, identify permitting and environmental considerations, and develop high-level cost estimates and a schedule. 1.1 Background and Assumptions HEA’s strategic plan for 2024 through 2026 identifies geothermal energy as an area of focus under its priority for energy resource diversification. As part of this priority, HEA is interested in assessing the economics of geothermal prospects. Geothermal prospecting is underway on Augustine Island on the west side of Lower Cook Inlet in the Kenai Peninsula Borough (KPB), within which HEA territory encompasses a vast majority of the population and communities. Initial geologic modeling suggests the potential for a high temperature subsurface geothermal resource related to Augustine volcano, an active stratovolcano on Augustine Island that is actively monitored by the Alaska Volcano Observatory. The Alaska Department of Natural Resources (DNR) authorized a noncompetitive geothermal prospecting permit to GeoAlaska, LLC, in 2022 and again in 2024 for an area on Augustine Island. In the summers of 2023 and 2024, GeoAlaska, LLC, conducted preliminary geothermal exploration on Augustine Island in the form of magnetotelluric (MT) data collection to identify the potential for geothermal resources. Drilling of a temperature gradient well to further characterize potential energy is proposed. Based on initial geologic modelling, GeoAlaska, LLC, estimates production between 50 and 100 megawatts (MW) using traditional geothermal methods. For the purposes of this study, it is assumed that a geothermal facility would consist of two 35 MW plants for a total of 70 MW. The ownership model of the potential geothermal project is not determined and is beyond the scope of this study. It is assumed that the prospective geothermal power plant on Augustine Island would be developed by an independent power producer (IPP), including siting the plant, drilling wells, and installing the turbines and generators. As part of that effort, the IPP would presumably construct infrastructure, including a dock or port facility on Augustine Island, roads and access routes to the plant from the port, accommodations for workers, and communications. For that reason, no costs or evaluation of the plant infrastructure on Augustine Island is included in this study. This study assumes HEA would purchase 70 MW of power from the IPP and be responsible for transmission of that power from the plant to the western shore of the Kenai Peninsula, tying into the existing 115 kilovolt (kV) system at Anchor Point. Augustine Island Interconnection Feasibility Study Report 2 December 2024 1.2 Feasibility Study Approach The feasibility study was conducted at a desktop reconnaissance level using publicly available data and professional judgement to evaluate transmission of power. The study comprised overhead lines from the geothermal plant to a substation on Augustine Island, a subsea cable across Cook Inlet, and overhead lines from the subsea cable to a substation in Anchor Point for connection to the existing HEA electrical 115 kV transmission system. A conceptual design for electrical transmission was prepared, which included evaluating options for both electrical elements and routes. Single line drawings and general arrangement diagrams of the existing Anchor Point substation are provided, as well as drawings of the conceptual design of a substation expansion or new substation. Maps of the possible routes are provided, with detail on potential environmental and permitting due to routing. The potential benefits and risks of each option are discussed. Based on the conceptual design and routing options, high level budgetary costs are estimated along with project financing and tax incentives. The cost estimate is focused on the design, procurement of materials and equipment, construction, and commissioning, but also includes consulting, permitting, and environmental cost estimates. 1.3 Report Structure The report is structured into six sections, as described below: •Section 2: Routing Options evaluates proposed routing options for an undersea cable across Lower Cook Inlet and overhead circuits from the western shore of the Kenai Peninsula to a substation. Maps and figures are provided in Appendix A. •Section 3: Preliminary Engineering Analysis discusses the method of transmitting power from Augustine Island to the Kenai Peninsula, and the major new equipment to connect to the existing transmission system. Electrical diagrams are provided in Appendix B. •Section 4: Project Costs and Economics provides a budgetary cost estimate for the design, procurement of materials and equipment, construction, and commissioning. Detailed tables and additional information is provided in Appendix C. •Section 5: Permitting and Licensing Evaluation discusses land lease requirements and a preliminary list of permitting requirements. A detailed permit matrix is provided in Appendix D. •Section 6: Environmental Screening evaluates potential environmental impacts and risk factors for installation of the interconnection, including how they relate to the permitting requirements. An environmental screening matrix is provided in Appendix E. Section 7 and Appendix F include a project schedule; Section 8 includes sources cited herein. Appendix G provides supplementary information beyond what is included in the main report. Augustine Island Interconnection Feasibility Study Report 3 December 2024 2.ROUTING OPTIONSThree routes for the interconnection from Augustine Island to the western shore of the Kenai Peninsula were evaluated as outlined by AEEC. The routes originate from the same point on Augustine Island, at the proposed geothermal plant. Option 1 intersects land at the north end of Anchor Point. Options 2 and 3 intersect land at the south end of Anchor Point. Between the two shorelines, a subsea cable would be laid. The routes are summarized in Table 2-1 and shown on appended Figure 1-1 in Appendix A. Table 2-1: Summary of Evaluated Routes Option Origin Point: Augustine Island Geothermal Plant Overhead: Plant to New Substation Subsea Cable across Cook Inlet Subsea Cable Landing Point Overhead: Landing to Substation Anchor Point Substation 1 59.342333° latitude -153.433333° longitude 2.7 km (1.7 miles) of new overhead 111 km (69 miles) with 1.13 km (0.70 miles) buried at landfalls Near MP 155 Sterling Hwy 3.2 km (2.0 miles) of new overhead Expansion of existing Anchor Point substation 2 111 km (69 miles) with 1.36 km (0.85 miles) buried at landfalls 59.7448° latitude -151.8490° longitude 8.5 km (5.3 miles) of new overhead 3 New substation near existing Anchor Point substation km: kilometers 2.1 Subsea Cable Routing At this point in the conceptual design, routing of the subsea cable can be approximated as a straight line between the two shorelines. Considerations during design in subsea routing include avoidance of protected areas (e.g., cultural resources, essential fish habitat), large seafloor elevation changes (e.g., shoals, ledges, boulders, slopes), strong currents, areas of subsurface drilling or offshore activities including dredging, and areas with increased seismic risk. The area of Lower Cook Inlet where the cable would be routed does not show significant trenches or seafloor obstacles but would require additional evaluation for refined routing. Graphic 2-1 shows the elevation profile along the straight-line subsea cable route across Cook Inlet. During future design development, the subsea cable routing would be further refined and finalized, including via more detailed studies such as hydrographic surveys, geotechnical surveys, archeological surveys, seabed floor movement tracking, and a cable burial risk assessment. Survey vessels are typically used for gathering this information with several types of equipment like multi-beam sonar, side scan sonar, cone penetration testing, and vibracoring. For the purposes of this study, the route for the subsea cable is estimated at 111 kilometers (km; 69 miles). Augustine Island Interconnection Feasibility Study Report 4 December 2024 Graphic 2-1: Elevation Profile Along Proposed Cable Routes Near the western shore of the Kenai Peninsula, there are several parcels leased for oil and gas mineral exploration, but there are no active drilling operations or platforms. The cable route should avoid leased parcels as much as possible to minimize conflicts with mineral exploration. However, it is possible to coordinate multiple leases if the uses do not conflict. At least one existing subsea cable is present that crosses the proposed transmission route: a fiberoptic cable owned by General Communications, Inc. that runs from Homer to Kenai. Laying of electrical transmission cable over fiberoptic cable does not cause concern but should be considered in design. This is further discussed in Section 3.2.1 and shown in Graphic 3-2. Landfall at both the Augustine and Anchor Point shorelines would be completed by horizontal directional drilling (HDD) and may affect routing. Additional geotechnical studies will be needed to evaluate the soils to aid in design of the landfall HDD. On the Augustine side, the shoreline is relatively rocky, but with plenty of beaches and small inlets that would allow for cable landing without concern for existing infrastructure. On the Anchor Point side, a large bluff approximately 75 meters (m; 250 feet) is present, as is the outlet and floodplain of the Anchor River. For both subsea cable ends, erosion rates will affect cable burial needs for landfall. The average erosion of nearby bluffs is approximately 0.9 m (3 feet) per year (United States Army Corps of Engineers [USACE] 2008). A more comprehensive study of erosion at the proposed landfall locations should be completed during routing refinement. The buried cable at the landfall ends would extend a minimum of 250 m (820 feet) and likely longer depending on the location of cable termination. Graphic 2-2 shows the elevation and slope profiles for the landing points near Anchor Point. Augustine Island Interconnection Feasibility Study Report 5 December 2024 Graphic 2-2: Elevation and Slope Profiles at Proposed Landfalls Landing at Augustine Island Option 1: Landing north of Anchor Point Options 2/3: Landing south of Anchor Point 2.2 Onshore Routing Where the subsea cable daylights and transitions to an overhead transmission line, a cable sealing end compound is proposed to transition from underground to overhead, with overhead high voltage direct current (HVDC) lines used to reach the substation. A converter station would be positioned adjacent to the substation to convert from DC to alternating current (AC). Augustine Island Interconnection Feasibility Study Report 6 December 2024 The estimated footprint of the cable end sealing compound is 15 m by 20 m (50 feet by 65 feet). An additional consideration in the location of subsea cable landfall is access for heavy equipment to directional drill for conduit and to pull the cable ashore where Cook Inlet is too shallow for the cable laying vessel to traverse. As described in Section 3.2, a footprint of approximately 50 m by 50 m (165 feet by 165 feet) would be necessary near shore of the subsea cable landing for heavy equipment. For both the HDD buried cable and the overhead lines, the typical easement requirement for 115 kV transmission is 100 feet to mitigate effects from electromagnetic fields, and 25 feet setback from any structure (e.g., residential building). At this point in the conceptual design, overhead lines are proposed because of the prevalence of wetland and leased mineral rights as well as lower cost and ease of construction. However, during refinement in the design, sections of underground lines may be recommended due to easements or other environmental or cultural considerations. 2.2.1 Augustine Island Routing The geothermal facility is estimated to be located on the south side of Augustine Island within the permitted prospecting area. AEEC estimated the location at approximately 59.342333° latitude and -153.433333° longitude, as shown on Figure 1-2. This places the plant in a drainage approximately 1.6 km (1 mile) due north of the southern shore, mid-way in elevation between Cook Inlet and the volcano crater summit, at an estimated elevation of 450 m (1,500 feet). This may not be a reasonable location for the final plant; plant siting would be determined further in the development of the geothermal resource. A new substation and converter station would be sited adjacent to the plant. For this study, it was assumed that the dock infrastructure to be developed by the IPP would be located near a small cove and headland, as shown in Figure 1-2. The proposed subsea cable landfall on Augustine would be located at approximately 59.3262° latitude and -153.4161° longitude. This headland area is generally flat, relatively undisturbed by pyroclastic flows, without dense vegetation, and large enough (50 acres) to accommodate construction equipment and material staging for subsea cable landfall. The landfall is shown in Graphic 2-3. Graphic 2-3: Potential Landing Area at Augustine Island Headland Source: https://www.youtube.com/watch?v=JCLJokMhaPg Augustine Island Interconnection Feasibility Study Report 7 December 2024 Two options were considered for electrical transmission routing from the plant/substation/converter station to the cable landing. Option A would follow the drainage due south from the facility to the near-shore bluff, then parallel the shoreline to the substation. The total length of Option A is 2.5 km (1.6 miles). Option B would avoid the drainage by routing east over a ridge, then follow the eastern slope of the ridge south to the substation, attempting to avoid a primary path of historical pyroclastic flows. The total length of the Option B is 3 km (1.9 miles). For both options, overhead transmission lines would be used, the terrain would be challenging for design and construction, design would require seismic evaluation and consideration of pyroclastic flows, and some clearing of vegetation would be necessary. Given the similarities in these options, and the significant uncertainty in the location of the geothermal plant, only one route (Option A) from the substation to cable landfall on Augustine was evaluated for design, costing, environmental, and permitting. 2.2.2 Anchor Point Option 1: North of Point to Anchor Point Substation For Option 1, landfall is estimated north of the point at approximately MP155 of the Sterling Highway, as shown on Figure 1-3 (151.85103 W, 59.79686 N). The cable sealing end compound would be located on undeveloped privately-owned land (that would be acquired) adjacent to Sterling Highway and the existing powerline right of way (ROW). The overhead line would run parallel to the Sterling Highway for 0.5 km (0.3 miles) where a 100-foot ROW is present, then cut east to the existing Anchor Point substation (2.3 km; 1.4 miles). Additional easement width along the highway may be needed to accommodate the HVDC line adjacent to existing conductor. A new 100-foot corridor easement would be needed between the highway and substation. The Anchor Point substation would be expanded and a DC to AC modular converter station added. 2.2.3 Anchor Point Options 2 and 3: South of Point to Anchor Point Substation For Options 2 and 3, landfall is estimated south of the point as shown on Figure 1-4 (151.85206 W, 59.74464 N). The cable sealing end compound would be located on an undeveloped parcel owned by DNR (Parcel 16911002). The overhead line would traverse east through a parcel owned by KPB (Parcel 16913125) for 1.6 km (1 mile) then cut north for 5.8 km (3.6 miles) to cross the Sterling Highway and connect to the existing 100-foot ROW to the Anchor Point substation. Additional easement width may be needed to accommodate the HVDC line adjacent to existing conductor. A new 100-foot corridor easement would be needed between the cable landfall and Sterling Highway. For Option 2, the Anchor Point substation would be expanded and a DC to AC modular converter station added. For Option 3, a new substation would be constructed on the same parcel as the existing substation and a DC to AC modular converter station added. 2.3 Anchor Point Routing Discussion The three options are constructable, close to developed infrastructure, but with different advantages or disadvantages. Option 1 landfall is closer to private homes and a bluff area that may exhibit more erosion but is only 3.2 km (2 miles) long. Options 2 and 3 landfall is on public land further from developed areas, along a bluff that suggests more deposition than erosion, but is more than double the transmission length at 8.5 km (5.3 miles) long. Both will require crossing large sections of wetlands (Figure 2) and obtaining new easements and expanding existing ROW along both public and private land (Figure 3). Options 2 and 3 require crossing the Sterling Highway, which is a historic highway, and comes closer to known cultural sites than Option 1. A simple Augustine Island Interconnection Feasibility Study Report 8 December 2024 weighted score matrix (Section 6) was developed to look at routing Options 1, 2 and 3 in terms of permitting and environmental screening. Option 1 scores significantly better than Options 2 and 3, primarily due to the shorter distance, including fewer wetlands and mature forest to cross. Costs for this project are primarily driven by the subsea cable; changes in onshore routing and substation do not have a major effect on the overall project cost. Substation equipment is less than 10% of the cost of the subsea transmission. Costs are discussed in Section 4 and Appendix C. Augustine Island Interconnection Feasibility Study Report 9 December 2024 3. PRELIMINARY ENGINEERING ANALYSISThe engineering analysis for bringing geothermal power from the planned geothermal plant on Augustine Island to the existing transmission station on the Kenai Peninsula at Anchor Point includes four major components: 1.Type of subsea cable, whether an HVDC or high voltage alternating current (HVAC)solution2.Location and method of installation of subsea cable, cable landfall, and power conversion 3.Interconnection substations, whether to expand existing or build new, including new major equipment needed to connect to the existing transmission system 4. Location and types of overhead lines A simplified diagram showing these major design components is provided as Graphic 3-1. Graphic 3-1: Simplified Diagram of Design Components Each of these components is described in detail in the following sections. The analysis uses the metric/SI system as part of the calculation. Where appropriate, conversion into imperial measurements has been carried out. 3.1 Selection of HVAC or HVDC Subsea Transmission A key component of the engineering design is whether to use HVAC or HVDC undersea cabling. Overall advantages of an HVAC solution are a lower initial cost, easier integration into the Anchor Point AC grid, proven technology, and flexibility on distance of transmission. HVAC is typically more suitable for shorter distances and grid integration. Overall advantages of an HVDC solution are lower transmission losses and higher capacity than HVAC and as an asynchronous link between AC systems of different frequencies. HVDC is typically more suitable for longer distances and high-capacity transmission. Augustine Island Interconnection Feasibility Study Report 10 December 2024 The decision between HVAC and HVDC is dependent on the distance of transmission, the amount of power to be transmitted, and the existing infrastructure at Anchor Point. The approximate cable length across Lower Cook Inlet from the takeoff point is 111 km (69 miles), to be refined during the front-end engineering design stage for the project. This assessment assumes a 111-km length of cable route, as shown in Figure 1-1. The minimum connection capacity is 70 MW. The existing system at Anchor Point is a 115 kV AC grid. The economic breakeven transmission distance for HVAC and HVDC depends on many changing factors and varies case by case. The general knowledge available today is that for subsurface cables, HVDC transmission becomes more economical than the HVAC alternative at a breakeven distance of 100 to 140 km (62 to 87 miles) for medium power transfer (i.e., below 750 MW). The distance between Augustine and Anchor Point puts this project within the breakeven point where neither has a clear economic advantage solely based on cable technology. 3.1.1 HVAC Subsea Design A detailed evaluation of HVAC is provided in Appendix G. Commercially available HVAC cables (bundled three-phase) are rated to just meet the distance needed to cross Cook Inlet from Augustine to Anchor Point (111 km) at a size of 185 square millimeters (mm2), current carrying capacity of 420A, cable capacitance of 0.14 microfarads per kilometer (µF/km), and voltage of 115 kV. However, to overcome a de-rating associated with HDD burial needs at both ends of the subsea cable due to the insulative properties of soil, the conductor size must increase. A subsea joint to change cable sizing to 300 mm2 would be completed at each end, changing the effective cable capacitance to 0.15 µF/km. At this change in capacitance, the cable is no longer rated to meet the distance to cross Cook Inlet (only 104 km). It is still prudent to consider this option further given how close the generic parameters are in this high-level conceptual design. In addition, the approximate charging current for the cable will be on the order of 310A. The design positions a 40-megavolt-amperes (MVA) reactive shunt reactor at each end of the cable to compensate against the charging effect associated with the cable, requiring additional network generation capacity to be available on the transmission network to enable the HVAC cable to be energized. This would be a short-term inrush current for which the transmission network must be capable of withstanding and is likely not feasible with the HEA network. 3.1.2 HVDC Subsea Design A detailed evaluation of HVDC is provided in Appendix G. An HVDC solution is viable for this project. It would use a commercially available 300mm2 HVDC cable, terminating at the cable end with cable end sealing compound and HVDC transmission lines to a modular voltage source converter (VSC) technology DC to AC conversion station. 3.1.3 HVAC Versus HVDC Discussion Both HVAC and HVDC may be viable for this project, but during this conceptual level review, the HVAC solution is more complicated from a design perspective and the HVDC solution provides some clear advantages. Some of the advantages for the HVDC solution include the following: • Power flow on the link is controllable. Augustine Island Interconnection Feasibility Study Report 11 December 2024 • The AC frequency and voltage level at both ends can be controlled independently of each other. • The HVDC link will not contribute to short circuit levels at the connected transmission network. • Faults and oscillations at the generator end will not transfer to the main transmission network. • No requirement for reactive compensation, so no need for shunt reactors across the cable length and only a small current inrush associated with energization of the cable. • Fewer losses across the transmission distance, estimated at 5 to 6% versus 7 to 10% for the HVAC solution. In addition, where the cable is proposed to be connected to the HEA transmission network is considered to be a “weak” connection in that any major changes to the network (e.g., switching large loads/generators/cable sections) can have a major influence on the stability of the transmission network. An HVDC solution will help with this situation due to its ability to help support the voltage and frequency at its point of connection. The key advantages of the HVAC solution are connectivity to the existing Anchor Point network at 115 kV and cost (which is discussed in Section 4). HVDC has a significantly higher capital cost than an HVAC solution. Although the cable costs for the HVDC solution will be less than those for the HVAC solution because of the assumptions made (i.e., a single type of cable along the whole of the route length, three HVAC cables within a single bundle, two HVDC cables) the system as a whole will be more costly due to the conversion stations and equipment. Depending on the ultimate goals of the project, it may be prudent to only consider HVDC. There have been numerous HVDC projects installed worldwide within the capacity range required for this project. However, it is recommended that the HVAC solution should be developed further to identify whether the existing transmission network can support the energization of a long length cable. This can be done by undertaking power system studies utilizing the background transmission network parameters and topology. Final selection of HVAC or HVDC is critical to prepare the design. 3.1.4 Subsea Cable Energization/Black Start Consideration will need to be made for the energization of the cable and black start capability. For the HVAC solution, it will be important to ensure that the new geothermal plant will be capable of energizing the cable. It will need to be able to provide the charging current associated with the cable as a minimum. This will cause the steam generators an issue, in that they do not like to ramp up very quickly (a high level of steam energy will need to be behind the turbine to enable this to happen). Therefore, energizing the cable from the geothermal plant at Augustine Island is unlikely to be possible. In terms of black start capability for the power plant only, this can be done at the geothermal generator end in which the backup generator(s) can start the geothermal power plant. With the HVDC link, this can be used to help with energizing the local transmission grid with the help from the geothermal generating plant. In this case, the HVDC link will control the ramp up rate when energizing parts of the transmission grid. Energizing the HVDC link takes a relatively Augustine Island Interconnection Feasibility Study Report 12 December 2024 small amount of power (a study would need to be undertaken to confirm the value) to which the geothermal power plant turbines should be able to deliver. 3.2 Cable Installation Different installation methods are needed for the subsea environment and the nearshore environment. 3.2.1 Subsea Cable Installation The installation of the subsea cable will very much depend on the seafloor type and conditions. For all types of subsea cable installation, specialized vessels are needed with gear to lay the cable. Cable-laying vessels are in high demand and have limited availability. Advanced planning is needed to secure a vessel on the project timeline. The specific vessel needed may originate in a distant part of the world but will access Cook Inlet through routine shipping lanes. Consideration should be made for locations in which the vessels can shelter in the event of extreme weather events and/or poor sea conditions. Appendix G includes further details on cable laying vessels. The area where the cable would be laid is relatively shallow, with a maximum depth of approximately 70 m (230 feet). As shown in Graphic 2-1, the shallow zone near Augustine Island is short (less than 5 km [3 miles]) whereas the shallow zone near Anchor Point is longer at 15 to 20 km (9 to 12 miles). Based on a typical draught of a cable-laying vessel, the remainder of the route is adequate for vessel operations. Cable laying can occur at any time of the year that the water is ice-free but is generally planned when adverse weather is minimized and marine life is not present. Lower Cook Inlet in the area of the proposed cable route may form ice in the coldest months of winter but may also remain ice- free depending on the winter conditions. During spring and summer is the ideal timing for cable laying partly because beluga whales are primarily found in Upper Cook Inlet and not traversing into Lower Cook Inlet. Once a full subsea cable routing plan is developed, including conducting several surveys and a cable burial risk assessment as mentioned in Section 2.2, it will be determined whether burial is recommended for the entire length or specific sections. In general, burial is used for protection from damage that would be caused by fishing, anchors, or seabed movement. The cable will cross both the Kamishak Bay and southern subdistricts of the Lower Cook Inlet Salmon Management Area where commercial fishing can occur. Appendix G provides detail on the different installation methods for subsea cable burial. Specific devices like jetting sleds, ploughs, trenchers, and remotely operated vehicles would be used to bury the cable in the seabed. Burial depths of 1 to 2 m (3 to 6 feet) are typically sufficient for protection against fishing, while greater depths are needed for protection against anchoring. The sediment conditions and maneuverability will determine the equipment needed. In general, jetting is effective in sandy sediments but less effective in stiff clays and uses a self-propelled tracked vehicle behind the main vessel. Ploughs are towed behind the main vessel and are less maneuverable but are effective in most sediment types. Given the glacial origin of the sediments in Cook Inlet, jetting or ploughing would be likely effective methods of burial. Augustine Island Interconnection Feasibility Study Report 13 December 2024 If cable protection is recommended and burial is not viable due to rocky areas or crossing other cables, armoring can be provided with rock placement, articulated pipe, or a concrete mattress. As part of the project, there will be a need to cross at least one existing subsea service (i.e., communication cable). The method to cross the service will be determined through negotiation with the lease holders who own and operate the subsea service as described in Section 5.1. Normal practice for crossing existing subsea cables is to cross them at 90° and for the power cable not to run parallel with them for any length, although short lengths can be permitted. Graphic 3-2 shows an example of a typical service crossing. Graphic 3-2: Example of a Subsea Service Crossing by a Power Cable 3.2.2 Nearshore Cable Installation Specialized cable-laying vessels are not able to lay the cables in very shallow water nearshore. The vessel approaches the beach to the closest practical point then anchors. For this project, the shallow zone near Augustine Island is anticipated to be less than 5 km (3 miles) and near Anchor Point is anticipated to be 15 to 20 km (9 to 12 miles). The cable can be floated and pulled to the beach to an intertidal joining pit (ITJP) and temporarily terminated. The ITJP is typically located between mean sea level and the seasonal high-water mark. At the ITJP, the cable is buried to a depth of approximately 2 to 3 m (6.5 to 10 feet) below lowest water levels to avoid daylighting at the shore. Pulling to the beach may involve a section of HDD or could be from heavy equipment located on the beach. Augustine Island Interconnection Feasibility Study Report 14 December 2024 Graphic 3-3: Example of Nearshore Connection using HDD A plough is used to bury the pre-laid cable by winching/pulling from onshore. The onshore pulling force is estimated at 50 to 80 tons. Graphic 3-4 shows a typical cable burial to the nearshore. Graphic 3-4: Sea Stallion 2 Plough Burying Cable Nearshore For this study, it is estimated that the leg of the cable from the beach/IJTP to the landfall location will be installed by HDD at both the Augustine Island end and the Anchor Point end. However, it is possible that on the Augustine Island end, the cable will not require burial when the design is refined. For both HVAC and HVDC solutions for subsea cabling, polyethylene pipe conduit would be used during HDD within which to pull the cables. For HVAC, 200mm (8 inch) diameter is proposed in three separate conduits for the three cables. For HVDC, 150mm (6 inch) diameter is proposed as a single conduit for the two cables. The HDD equipment would incline at a shallow angle (e.g., 12°), advancing a drill bit horizontally down through the bluff and then be deflected upwards to exit at the intended IJTP. Drilling fluid is pumped into the hole and returns back carrying the soil and rock cuttings. The hole is then Augustine Island Interconnection Feasibility Study Report 15 December 2024 widened out by replacing the drill bit with a reamer and reaming out the hole. Conduit can be pulled in from the beach side or can be fed through from the land side. The conduit is typically staged in lengths that are welded together with heat fusion as they are strung through the hole. The distances estimated for HDD at Anchor Point are near the maximum range of heavy drilling rigs. However, shorter distances are likely possible when refining the design. 3.3 Interconnection Substations Two substations are needed for the interconnection between the geothermal plant and the existing Anchor Point transmission system: one on the Augustine side and one on the Anchor Point side. For Augustine, the only option is to build a new substation. For Anchor Point, either the existing substation could be expanded (Options 1 and 2) or a new substation could be built (Option 3). Both HVAC and HVDC systems require a substation, but their infrastructure needs differ. For HVAC, the onshore cable would need to be extended via an overhead 115 kV line to the substation location, or the distribution network would need to be rebuilt and reconfigured for a substation near the onshore landing of the undersea cable. In contrast, HVDC requires a converter station to convert the 80 kV DC to 115 kV AC for distribution to the grid. The DC converter station could be located at the existing Anchor Point substation, or the DC converter station could be located at a new location where a new substation would be built. In either case, the costs for routing the 115 kV lines to either location are comparable. However, placing the DC converter station and substation at a new location introduces additional considerations for the distribution grid. For that reason, in this conceptual design, the DC converter station is located at the existing Anchor Point substation. A simplified single line diagram of the converter station is provided as Graphic 3-5. During further design development, when complete details on the HEA Anchor Point grid are available, a microgrid analysis would be conducted to evaluate effects to the distribution. Graphic 3-5: Simplified Single Line Diagram for the HVDC Voltage Source Converter 3.3.1 Augustine Island Substation (Plant 13.8kV to 115kV) A new substation at the geothermal plant would need to be built to transform the assumed 13.8-kV generated power for each 35-MW turbine. A single line diagram is attached in Appendix B. The estimated footprint would be 76.2 m by 53.3 m (250 feet by 175 feet). Two 40/50/60-MVA Augustine Island Interconnection Feasibility Study Report 16 December 2024 13.8/138-kV transformers would be installed in a parallel configuration, allowing operation at a lower output rating, independently. Metal clad switchgear would be used on the 13.8-kV side, which would allow each turbine unit to run independently or in parallel. A control building to house the relaying, metal clad switchgear, and battery systems could be built on-site or a prefabricated building, in sections, could be moved to the site. 3.3.2 Anchor Point Substation (Interconnection 115kV to 13.8kV) 3.3.2.1 Options 1 and 2: Expansion of Existing Anchor Point Substation Options 1 and 2 consider the addition of a 115 kV line to the existing Anchor Point substation, requiring a reconfiguration of the current switching scheme into a ring bus configuration. A single-line diagram and general arrangement is attached as Appendix B. This expansion involves significant modifications, as the existing 115 kV scheme will need to be demolished or restructured, necessitating a complete substation outage during construction. Additionally, to accommodate the increased loads, the existing 9.375 MVA transformer must be replaced with a 70 MVA unit, adding considerable complexity. The higher capacity transformer would require comprehensive upgrades to the existing 25 kV equipment, which is unlikely to support the increased continuous and fault current demands. Further, the larger transformer would necessitate compliance with Spill Prevention Control and Countermeasure requirements, potentially requiring a new oil containment pit. Space limitations due to the configuration at the site may challenge the feasibility of these upgrades and raise questions about the practicality of integrating additional loads. The current footprint is approximately 45.7 m by 45.7 m (150 by 150 feet) and the expansion would require an additional 36.5 m (120 feet) on one side, which may also require a redesign of the ground grid to ensure safety and operational reliability. To support the new configuration, extensive updates to relay wiring, relay settings, and supervisory control and data acquisition (SCADA) systems will be essential. Enhancements to the AC and DC systems, including resizing the battery system, will be needed to meet increased operational demands. Station service infrastructure upgrades are also likely, while the control building may need expansion or replacement to accommodate the additional relay panels and associated equipment. A carefully coordinated phased outage management plan will be critical to minimize disruptions during construction. Additionally, comprehensive load flow and fault current analyses must be performed to ensure the upgraded substation operates efficiently and meets reliability standards post-expansion. The major equipment needs for expanding the Anchor Point Substation are provided in Table 3-1. Table 3-1: Major Equipment Needs for Anchor Point Substation Expansion Equipment Specification Quantity Main Power Transformer (MPT) 70 MVA at 65 degrees Celsius, 115-24.94Y/14.4 kV, ONAN/ONAF/ONAF with Arresters 1 Gas Circuit Breaker (GCB) 115 kV, 1200 amperes (A), 40k A 4 Gang Operated Air Break (GOAB) Switches Motor Operated, 115 kV, 1200 A 4 GOAB Switches 115 kV, 1200 A 8 Augustine Island Interconnection Feasibility Study Report 17 December 2024 Equipment Specification Quantity Arresters 98 kV maximum continuous operating voltage (MCOV) 9 Coupling Capacitor Voltage Transformer 800/1000:1:1 12 Package Control Building Includes all relay panels 1 3.3.2.2 Option 3: New Anchor Point Substation Option 3 proposes replacing the existing Anchor Point substation with a brand-new facility designed to relocate the two current 115-kV line positions (Kasilof and Diamond Ridge) while adding a new 115-kV line position (Augustine Island), all within a three-position ring bus configuration. A one-line diagram and general arrangement is attached as Appendix B. This approach offers significant advantages by allowing the new substation to be constructed while keeping the existing Anchor Point substation online, minimizing disruptions to current loads and limiting the need for extensive modifications to the existing infrastructure. The new substation can incorporate future growth considerations, modern design standards, and enhanced switching capabilities, providing greater operational flexibility. Additionally, relocating to a new site, even if the new site is on the same parcel owned by HEA (Parcel 16516261) reduces the space and layout constraints typically associated with expansions to exiting configurations. However, this option comes with higher initial costs due to the construction of a separate facility. Additional land acquisition is not anticipated because there is sufficient undeveloped area within the existing HEA parcel. During the transition phase, maintaining two facilities may temporarily increase operational and maintenance responsibilities. Despite these challenges, constructing a new substation presents a strategic, long-term solution capable of meeting increased demand, improving reliability, and supporting future system expansions effectively and efficiently. The ideal location for the new substation would be near the existing distribution network to minimize construction efforts and reduce outage time when transferring existing circuits to the new substation. Conversely, if the substation is positioned closer to the subsea cable landing, additional considerations regarding the distribution network would need to be evaluated. These include maintaining the existing reliability of the system, accounting for changes in load distribution, and addressing the increased distance between the new load point and end-users. The major equipment needs for a new substation are provided in Table 3-2. Table 3-2: Major Equipment Needs for New Anchor Point Substation Equipment Specification Quantity Main Power Transformer 70 MVA at 65 degrees Celsius, 115-24.94Y/ 14.4kV, ONAN/ONAF/ ONAF with Arresters 1 Gas Circuit Breaker (GCB) 115 kV, 1200 A, 40 kiloamperes (kA) 4 Gang Operated Air Break (GOAB) Switches Motor Operated, 115 kV, 1200 A 4 GOAB Switches 115 kV, 1200 A 8 Augustine Island Interconnection Feasibility Study Report 18 December 2024 Equipment Specification Quantity Arresters 98 kV maximum continuous operating voltage (MCOV) 9 Coupling Capacitor Voltage Transformer 800/1000:1:1 12 Package Control Building Includes all relay panels 1 Vacuum Circuit Breaker 24kV, 1200A 2 GOAB Switches 24kV, 1200A 5 Voltage Regulators, TBD (if required) 3 Potential Transformers TBD (as needed) 6 Station Service Transformer with fused disconnect 1 Two Way Automatic Communication System Maximum Transmission Unit (TWACS MTU) TBD (if required) 1 3.4 Overhead Transmission Electrical transmission between the cable termination point and the substation will primarily be accomplished by overhead lines. Because the DC to AC converter station and substation have been assumed to be located near each other, HVDC lines have been assumed for transmission between the subsea cable and the substation. Overhead lines worldwide are the preferred and the proven solution for bulk transmission of electricity. They are highly available, have a low number of faults compared to other technologies, and restoration can generally be completed in days in the case of interruption. Major overhead faults like tower failures are rare. Construction of overhead lines can be completed in virtually all types of terrain and soil conditions. Actual land use is limited to tower locations, and spans can range in distance by increasing tower height. Maintenance includes vegetation clearing. HVDC overhead lines consist of two conductors per circuit at a minimum, which equates to less loading on towers than an HVAC overhead line which consists of three conductors at a minimum voltage of 80 kV is selected as typical to transmit 100 MW on HVDC. For 80 kV HVDC overhead transmission, either monopole or bipole towers can be used, constructed of either wood, steel, or concrete. Wood monopoles are assumed for cost estimating purposes to match existing structures in Anchor Point and provide an economical option for purchase and sourcing. The estimated height is 80 to 100 feet depending on the terrain and any crossings. Further design refinement would determine whether alternative materials would be recommended. A typical arrangement for an HVDC monopole would be used for the design, as shown in Graphic 3-6. Lightening shield wires are shown at the top of the tower and can be used with integrated fiber optics for communication purposes. Augustine Island Interconnection Feasibility Study Report 19 December 2024 Graphic 3-6: Design of a Monopole Transmission Tower Suitable for 80 kV For this project, a current of approximately 625 A is required. A 477 kilo circular mils (kcmil) Hawk Aluminum Conductor Steel Reinforced (ACSR) conductor rated at 660 A is recommended due to its mechanical properties. Careful selection of the conductor size will be required during the refined design to ensure that any future capacity increases are accommodated. This will be a trade-off between higher voltage and a thicker conductor. A rule of thumb is to keep the conductor resistance lower than 10 ohm per 1,000 km (620 miles). Table 3-3 proposes a rough estimate of the number of tower structures needed for the routing options on Augustine and Anchor Point. These would be refined during design and selection of routing. Table 3-3: Quantity of Monopole Towers Augustine Option A Augustine Option B Anchor Point Option 1 Anchor Point Options 2/3 Tangents 10 11 16 53 Light Angles 3 5 3 4 Running Angles 6 4 5 7 Dead-end 2 2 2 2 Total 21 22 26 66 Augustine Island Interconnection Feasibility Study Report 20 December 2024 4. PROJECT COSTS AND ECONOMICS The electrical interconnection project costs include the design of the overall project, plus the materials, equipment, construction, and commissioning costs for the substations on both ends, the subsea cable including landfall and cable end sealing compound at both ends, the DC to AC conversion facilities at both ends, and the overhead transmission lines between subsea cable and the substation at both ends. In addition to the design, materials, equipment, construction, and commissioning costs, there are several other owner costs that would be incurred for the project. These include items such as permitting, land leasing, and environmental studies, geotechnical studies, project oversight by the owner including travel, and financing costs, including legal and insurance fees. Although these additional costs were not listed in the scope of work, a discussion and rough order of magnitude estimates are included to provide a holistic picture of project costs. In addition to costs, a high- level summary of available federal and state grants, tax incentives, and loans was prepared. The lack of a developed plan for the geothermal plant will result in changes to the design over time, including scaling up or scaling down the power and transmission needs. While the conceptual design is flexible to the changes, the cost estimate is based on concrete assumptions that are less flexible. In addition, costs of items continue to change significantly with various economic pressures. The cost estimate is provided with a range of -30% to +50% to accommodate some of the variables. Assumptions and cost ranges are provided in Appendix C. 4.1 HVAC Versus HVDC Costs As described in Section 3.1, the cost difference between HVAC and HVDC solutions for the subsea cable can be substantial. The costs for HVDC are used in the budgetary cost estimate in Section 4.2. Although HVAC was not considered viable given the estimated distance in the conceptual design, it may still be worth pursuing for front-end engineering design. For this reason, a rough cost comparison is provided in Table 4-1 to highlight the differences. The cost differences between HVAC and HVDC overhead lines and substations are minimal. In both solutions, the transformers and tower construction drive costs. Table 4-1: HVAC and HVDC Solution Cost Comparison Component HVAC ($M) HVDC ($M) Shunt reactors (40 MVA) 1.2 Not Applicable DC to AC converter stations Not Applicable 145 Cable sealing end compound 0.22 0.2 Overhead lines (materials and installation) 0.72 0.66 Subsea cable (materials and installation) including HDD sections 169.8 132.8 Engineering 0.50 1.85 Construction 0.84 5.12 Commissioning 0.13 0.44 TOTAL 173.4 286.1 Augustine Island Interconnection Feasibility Study Report 21 December 2024 4.2 Budgetary Cost Estimate The budgetary cost estimate is provided as a bill of materials for capital expenditures of equipment, plus a table detailing the rough order of magnitude costs for 100% design, construction, and commissioning. Anticipated permitting, licensing, leasing, environmental, and engineering fees are also estimated. Escalation, inflation, and accuracy factors are provided. The complete cost table and assumptions are provided in Appendix C. Table 4-2 summarizes the overall costs. Table 4-2: Budgetary Cost Summary (HVDC only) Option 1 ($M) Option 2 ($M) Option 3 ($M) Environmental, permitting, consulting, and studies 5.8 5.8 5.8 Engineering design 3.0 3.0 3.0 Mobilization/Transport 3.1 3.1 3.1 Materials and Equipment 254 256 256 Construction 54 54 55 Commissioning 0.9 0.9 0.85 TOTAL 320.8 322.8 323.8 Estimate -30% 224.5 226.0 226.7 Estimate +50% 481.2 484.2 485.7 4.3 Tax Incentives and Funding Opportunities Homer Electric’s certificated territory encompasses a vast majority of the population and communities on the Kenai Peninsula and essentially all the populated portions of the central and western Kenai Peninsula. Several of the communities are off the road system, including Halibut Cove, Seldovia, Port Graham, and Nanwalek. The population served by HEA is approximately 33,000 customers and is considered rural. The villages of Port Graham and Nanwalek are Alutiiq communities. The Port Graham Tribal Council and the Native Village of Nanwalek are federally recognized tribes. It may be beneficial for HEA to develop a cooperative agreement to represent a group of stakeholders that include tribal entities to pursue funding opportunities. Financing can be coordinated using a mix of public and private funding sources for a project of this size. Based on publicly available financial statements for HEA in the years 2022 and 2023, long term debt was serviced by loans through the National Rural Utilities Cooperative Finance Cooperative, National Cooperative Services Corporation, Farmer Mac, and Rural Utility Service Guaranteed Federal Financing Bank. The overall average interest rate is estimated at 6%. Through these services, approximately $30M is available through unadvanced loan facilities. Through directives of the Bipartisan Infrastructure Law and Inflation Reduction Act, the United States Department of Energy issues federal tax credits for geothermal energy production and costs for transmission infrastructure development from qualified new geothermal production facilities. Geothermal electricity production tax credits may be issued for up to 30% of the total installed cost for eligible assets. Eligibility requirements include compliance with prevailing wage (Davis Bacon Act) and workforce training and apprenticeship metrics. It is important to note that all Augustine Island Interconnection Feasibility Study Report 22 December 2024 project participants including contractors, subcontractors, and specialty trades are subject to compliance with these conditions. The Energy Community Tax Credit Bonus Sections of the Internal Revenue Code may apply to the HEA energy project and investment under Sections 45, 48, 45Y, and 48E. The onshore substation that conditions the project’s generated electricity received from the subsea interconnect for transmission, distribution, and use is located within a qualified energy community. It is likely that the entire project footprint falls within a qualified energy community. Because this energy project would be placed in service within the community after December 31, 2024, it may qualify for an additional 10% of the total installed cost, to be applied in bonus credit amounts or rates. In addition to federal tax credits, the Department of Energy’s Office of State and Community Energy Programs was established to extend the capacity and capability of states, tribes, local governments, and community serving organizations to implement high-impact, self-sustaining clean energy projects that center the needs of low-income and disadvantaged communities. The office does this through the management and oversight of formula grants, competitive grant awards, and consumer rebate grants. These grant funding announcements are released intermittently and should be considered part of the project fund stacking strategy with active monitoring for availability and applicability. Qualified clean energy facilities which are placed in service after 2024 may be classified as a 5- year property via the modified accelerated cost recovery system (MACRS) (IRA Provision 13703). Owners of qualified facilities, property and energy storage technology placed into service after December 31, 2024, may be eligible for the 5-year MACRS depreciation deduction. Deduction for cost recovery for qualified clean energy facilities includes properties and technology. Under Internal Revenue Code Section 168(e)(3)(B), qualified facilities, qualified property and energy storage technology are considered 5-year property. These types of property are recoverable under the MACRS. Other IRS deductions and business credits may apply such as the Clean Energy Production Credit. This is a newly established, technology-neutral production tax credit that replaced the Energy Production Tax Credit once it phases out at the end of 2024. This is an emissions-based incentive that is neutral and flexible between clean energy technologies. This credit starts for the latter of 2032 or when U.S. greenhouse gas emissions from electricity are 25% of 2022 emissions or lower. There are several other incentives and deductions which may apply. In the next phase of due diligence for this project, it is recommended that front end engineering design phase project information be evaluated against the options in the potential funding stack. With the evaluation of design and project specific data against the burden of funding compliance, it may be that the cost outweighs the benefit of the funding. As these are unknown during this early phase of design, it is recommended that this evaluation is revisited upon initiation of the next phase of HEA’s work. A schedule of potential funding needs is provided in Table 4-3 along with a total accumulated financing cost. This is based on the lead times needed for procurement, and assuming for procurement of large equipment, such as the DC to AC converter station, transformers, and subsea cable, a 30% deposit will be needed upon order and the remaining 70% will be needed at completion. Based on the cost of existing debt held by HEA, the interest rate is estimated at 6% for 30 years. Augustine Island Interconnection Feasibility Study Report 23 December 2024 Table 4-3: Financing Schedule Year Expenditure ($M) Financing Cost ($M) Design, Engineering, Studies 1 8.9 1 Long Lead Procurement Order: Converter Station, Transformers, Subsea Cable 2 73.6 14.5 Long Lead Procurement Completion: Converter Station, Transformers, Subsea Cable 5 171.7 15 Mobilization of Equipment and Subsea Construction Vessel, Subsea Construction 6 54.5 18 Onshore Construction 7 15.3 18.7 Remainder of Term 23 - 308 Approximated Total 324 375.2 Augustine Island Interconnection Feasibility Study Report 24 December 2024 5. PERMITTING AND LICENSING EVALUATION 5.1 Land Lease or Acquisition Needs 5.1.1 Augustine Island Surface Augustine Island is owned by the State of Alaska. DNR administers uses of state lands for beneficial use via permits and leases. Before approving a permit or lease, the director must determine whether the disposal is in the best interest of the state. Geothermal resource development is authorized under Alaska Statute 38.05.181 with regulatory guidance outlined in the Alaska Administrative Code (AAC) (Title 11, Chapter 84, Sections 700-950). The entire island is under an Interagency Land Management Agreement with the Alaska Volcano Observatory (DNR file ADL 225681). The agreement has been in place since 1992 and grants access but does not restrict other state or public access (DNR 2024). The area of the proposed geothermal plant, the assumed dock infrastructure, and the proposed transmission and substation route on Augustine Island is leased by GeoAlaska, LLC, for geothermal prospecting (DNR file ADL 394080). Adjacent parcels to the east and west are also leased by GeoAlaska, LLC (DNR file ADL 394174) for geothermal prospecting. For both development of the geothermal plant and transmission, a DNR lease will be needed, coordinated through the Division of Oil and Gas. The lease could be considered either competitive or noncompetitive as designated by the commissioner (11 AAC 84.720). During exploration, a primary term lease is 10 years with potential for a 5-year extension, which would be extended for the duration of commercial production once production has begun (11 AAC 84.745). 5.1.2 Cook Inlet The area of Lower Cook Inlet where a subsea cable would be routed from Augustine Island to Anchor Point would include leases from the State of Alaska DNR Division of Mining, Land, and Water and the Bureau of Ocean Energy Management. DNR Division of Mining, Land, and Water manages state-owned tide and submerged lands, which are seaward of mean low tide to 3 miles offshore. The DNR submerged lands leases would be needed for both the nearshore area near Augustine Island and near Anchor Point. DNR has discretion on the duration of the lease, which usually ranges from 10 to 25 years. Although the Division of Mining, Land, and Water manages submerged lands leases, at DNR’s discretion, this lease could be managed through the Division of Oil and Gas as part of a larger negotiated lease for a transmission project associated with geothermal energy development. The Bureau of Ocean Energy Management manages leases in the outer continental shelf, which are generally between the DNR-managed State of Alaska submerged lands along the Cook Inlet route. A lease for electrical transmission would be needed. The process is typically competitive, and the term of the lease may be up to 25 years with options for renewal. Because the subsea cable would intersect an existing cable, a fiberoptic cable owned by General Communications Inc. that runs from Homer to Kenai, coordination between the leases may be necessary. Augustine Island Interconnection Feasibility Study Report 25 December 2024 5.1.3 Anchor Point Cable Landing For the Option 1 route, the subsea cable landfall would intersect two leases for oil and gas by Hilcorp Alaska, LLC (DNR files ADL 393959 and ADL 392666). Coordination between these leases will be necessary to manage combined best uses. The cable would be placed under private-owned parcels, daylighting adjacent to the Sterling Highway where the cable end sealing compound would be placed to transition from underground to overhead lines. Land would likely require subdivision and acquisition. For the Options 2 and 3 route, the subsea cable landfall intersects one lease for oil and gas by Hilcorp Alaska, LLC (DNR file ADL392667). For Option 1, coordination between the leases will be necessary to manage combined best uses. The cable would be placed under a parcel owned by DNR (parcel 16911002). The Division of Mining, Land, and Water can develop a commercial or industrial lease for their parcels for beneficial use. These leases can be long-term, sometimes up to 50 years. The cable would daylight on this same parcel and a cable end sealing compound would be placed relatively close to shore. Access to this parcel would require addition of a road, possibly an expansion of an existing all-terrain vehicle trail that extends from the end of Van Seventer Avenue, through a parcel owned by KPB (parcel 16913125). At DNR’s discretion, these leases could be managed through the Division of Oil and Gas as part of a larger negotiated lease for a transmission project associated with geothermal energy development. 5.1.4 Anchor Point Transmission Alignment: Option 1 For Option 1, electrical transmission is proposed (Figure 1-3) along an existing HEA 30-m (100-foot) ROW corridor along the west side of the Sterling Highway for 0.5 km (0.3 miles). A portion of this ROW is currently used by HEA for electrical distribution lines. Given the 2.4-m (8-foot) span of the tower design for 80 kV HVDC transmission, additional ROW width (approximately 10 m [33 feet]) will be needed to accommodate setback for both sets of towers, or re-routing of the smaller existing distribution line to the opposite side of the road may be needed. The line would continue due east to Greenfield Road and then south to the existing Anchor Point substation. A new easement of 30.4-m (100-foot) width would be needed for the 2.4 km (1.5 miles) east alignment. Eight parcels are located along the north side of this route, and 16 parcels are located along the south side. As shown on Figure 1-3, all but one of the parcels is privately owned. Two small parcels have an existing 10-m (33-foot) property line easement that is not sufficient width for the proposed transmission. From Greenfield Road, the line would continue due south to the existing Anchor Point substation along an existing HEA 30.4-m (100-foot) ROW corridor and along the northbound 115 kV HVAC line toward Diamond Ridge. Similar to the Sterling Highway ROW, additional ROW width (approximately 10 m [33 feet]) will be needed to accommodate setback for both sets of towers. The additional width would be along one privately-owned parcel. Augustine Island Interconnection Feasibility Study Report 26 December 2024 5.1.5 Anchor Point Transmission Alignment – Options 2 and 3 For Options 2 and 3, overhead line would traverse east through a parcel owned by DNR (parcel 46911002; 1 km [0.65 miles]) and then a parcel owned by KPB (Parcel 16913125; 1.6 km [1 mile]). In both instances, a 30.4-m (100-foot) easement would be needed. The line would transition north for 1 km (0.67 miles) to cross the Sterling Highway and connect to an existing 30.4-m (100-foot) ROW that leads to the Anchor Point substation. Where the line heads north, an additional DNR parcel is located to the east, and four additional private parcels are located along the sides. Where the line connects to the exiting easement, two parcels owned by the Kenai Trust are on the west, and another KPB-owned parcel is on the right (parcel 16910215). The Kenai Trust refers to the Kachemak Heritage Land Trust that focuses on preserving wildlife habitat and recreation lands. For the section of line (4.7 km [3 miles]) that continues north along the existing 30.4-m (100-foot) easement, the existing Kasilof 115 kV transmission line is present. Similar to Option 1, additional ROW width (approximately 10 m [33 feet]) will be needed to accommodate setback for both sets of towers following the same easement. This ROW has been coordinated along 14 privately-owned parcels, 3 KPB parcels, 1 DNR parcel, 1 Kenai Trust parcel, and 1 Cook Inlet Region, Inc. parcel. 5.2 Preliminary Permitting Requirements List Several agencies will require permits for the interconnect project through the investigation and design phases, construction phases, and operational phase. In all phases, permits will focus on preserving cultural and ecological resources and obtaining access and use of land and water. This will include easements, heavy equipment use, vegetation clearing and wetland/stream crossings. As part of planning, the prevalence of wetlands within the proposed alignment will include a Section 404 Permit that involves a National Environmental Policy Act (NEPA) review. NEPA is discussed in Section 6. In the construction phase, permits will also be needed to manage waste generation, such as stormwater, land clearing, air emissions, oil releases, or incidental take of marine mammals. A cable landing license through the Federal Communications Commission (FCC) is specific to the subsea transmission. In the operational phase, ongoing monitoring or ROW requirements may apply. A permitting matrix is provided in Appendix D to provide an overview of the permits and regulatory requirements that may apply to the interconnect project.  The matrix is not intended to be comprehensive at this conceptual phase of the design; additional notifications and approvals may be required as determined during refinement of the design. Augustine Island Interconnection Feasibility Study Report 27 December 2024 6. ENVIRONMENTAL SCREENING Based on the general interconnect project footprint, the presence of wetlands, marine mammals, the subsea cable crossing zones, and the understanding that AEEC will be pursuing federal grant or loan funding, the project will trigger NEPA requirements. NEPA review will be a key component for the project and in obtaining federal funding. There are three categories of NEPA review: categorical exclusions (CatEx), environmental assessments (EAs), and environmental impact statements (EISs). Based on the current options being evaluated, an EA will likely be required. • CatEx: Allowed for actions that do not have a significant impact on the environment and can be excluded from detailed environmental review. CatEx is not reasonable to assume for this interconnect project. • EA: A concise review that determines whether an action has potential to cause significant environmental effects. If no significant environmental impacts are identified, a Findings of No Significant Impacts (FONSI) is issued. But if significant environmental impacts are identified, an EIS is required. • EIS: A detailed review that provides a comprehensive analysis of significant environmental impacts of a proposed action, including alternatives. A minimum of 45 days for public comments is required. The environmental review generally evaluates the topics shown in Graphic 6-1. Graphic 6-1: Overarching Topics Evaluated During Environmental Review 6.1 Overall Scoring of Routing Options An initial analysis was completed for the primary environmental topics based on the conceptual design. The two Anchor Point routes were reviewed for the land status (public/private), roadway crossings, stream crossings, wetlands, areas of critical environmental concern, critical habitat, forested areas, existing electrical utility crossings, wilderness areas, cultural resources (as available Augustine Island Interconnection Feasibility Study Report 28 December 2024 in the National and Historic Preservation Act [NHRA] database), and proximity to residences and community gathering areas. The categories were weighted, and final scoring was calculated. The detailed scoring summary is provided in Appendix D and is summarized in Table 6-1 as combined into the two routing options. The initial review shows that Option 2 and 3 will have the least overall environmental impact. Table 6-1: Initial Environmental Screening of Routing Options Weighting Factor Option 1 Score Option 2 and 3 Score Land Status/Ownership-Public 1 1320 5204 Land Status/Ownership-Private 2 6230 27596 Road Crossings 2 8 18 Stream Crossings 2 2 4 Existing Electrical Utility Crossings 3 3 15 Wetlands (combined types) PEM: 3 PSS: 4 PFO: 5 14003 37773 Critical Environmental Areas 5 0 0 Mature Forested Areas 2 1984 6934 Wilderness Areas 4 0 0 Cultural Resources 5 0 5 Proximity to Residences Less than 250 feet: 5 Less than 500 feet: 3 190 515 Near Places of Community Gathering 5 0 0 Note: Score represents a distance or count multiplied by a weighting factor. Details are provided in Appendix E. PEM: Palustrine Emergent Wetland PFO: Palustrine Forested Wetland PSS: Palustrine Scrub-Shrub Wetland 6.2 Specific Environmental Considerations A high-level environmental screening review was conducted to evaluate potential environmental impacts and risk factors for the electrical interconnection. A summary of critical items is included in Table 6-2. Additional detail is provided in Appendix G. A similar evaluation was conducted for the Augustine Island area as part of the geothermal prospecting permit written finding of the director (DNR 2022). Much of the information as it pertains to the Augustine Island side and Cook Inlet are from the prior evaluation. Additional information is included as it pertains to the Anchor Point side. Key considerations include critical habitat for fish in Cook Inlet, which may be affected during subsea cable construction activities, wetlands present on the parcels to be developed on the Anchor Point side, which may need to be avoided or effects mitigated, and land ownership effects on the Anchor Point side depending on the final route selected, which may be mitigated by beneficial use of state-owned lands. Augustine Island Interconnection Feasibility Study Report 29 December 2024 Table 6-2: Environmental Considerations Augustine Island Cook Inlet Anchor Point Biological Resources Bald eagles (and other MBTA-protected birds) breed on island and may require nest monitoring during construction. Plan vegetation clearing activities early or late in the season to limit potential impacts to ground nesting birds. Streams have not yet been surveyed for anadromous fish. Boat access and traffic will need to consider avoidance of harbor seal rookeries and haul-outs. Biosecurity protocols will need to be followed to prevent introduction of species that may affect birds (e.g., rats). Essential fish habitat is present in Lower Cook Inlet and may require quantification of potential impacts to commercial and recreational groundfish and salmon fisheries. Subsea cabling will cross critical habitat for the northern sea otter. Sound impacts to beluga whale habitat will need consideration. Actions will be taken to prevent entanglement during construction of the subsea cable. Bald eagles and MBTA-protected birds breed or have potential breeding habitats along proposed transmission line alignments. These species may require nest monitoring during construction. Plan vegetation clearing activities early or late in the season to limit potential impacts to ground nesting birds. Water Resources No wetlands are identified. Appropriate permits are needed to cross the water body. Wetlands and jurisdictional waterways are present across several of the parcels proposed for routing. Mitigation measures may be needed if wetlands cannot be avoided and tree clearing is required. Cultural Resources Outreach should be conducted with State Historic Preservation Office and Alaska Native Communities in Lower Cook Inlet to confirm to historic or prehistoric sites. One potential cultural site may be within the buffer distance for the cable crossing and additional studies will be needed to confirm whether additional sites are present. One potential cultural site may be within the buffer distance for one of the line options, but additional studies and monitoring will be needed during final routing. Geology, Soils, and Mineral Resources The area is seismically active and may have induced seismicity from the geothermal plant. Augustine Island is an active volcano with regular eruptions and pyroclastic flows. Geotechnical evaluations are needed for siting considerations as well as risk evaluation of volcanic eruption impacts. Leases are in place for mineral exploration near shore at Anchor Point and will be coordinated with landfall for the cable. The area is seismically active and will require accommodation in design. The area is seismically active and will require accommodation in design. Air Quality Consideration for short-term emissions, dust, and equipment during construction. No long- term impacts to air quality are anticipated from the electrical interconnection. Socioeconomics / Environmental Justice The island is uninhabited and rarely used for recreational tourism. No long-term impacts are anticipated. No long-term impacts are anticipated for the fishing economy. Local short-term construction jobs may be created and some potential for additional jobs for electrical system maintenance. No long- term impacts are Augustine Island Interconnection Feasibility Study Report 30 December 2024 Augustine Island Cook Inlet Anchor Point anticipated for the tourism fishing economy. Public Safety Augustine volcano is active and monitored for eruptions and will requiring planning for coordination with worker safety. During construction of the subsea cable, public notification and coordination of Cook Inlet use will be needed. Electromagnetic fields are generated from transmission lines that will require setback and avoidance. Noise Consideration for short-term construction noise, including mitigation for marine mammals during subsea cable laying. Long term noise is low at 75 dBA from electrical generators. Airspace Overhead lines are 80 feet and not within 25 miles of commercial airports. No anticipated effects on airspace from subsea cable. Overhead lines are 80 feet and not within 25 miles of commercial airports. Visual Resources/ Aesthetics Addition of electrical lines and infrastructure will not be visible by most of the population due to the remote nature of the island. No anticipated effects on visual resources from subsea cable. Addition of a new substation, expansion of an existing substation, and towers will alter the landscape. Land Ownership, Land Use, and Recreation Recreation may be inhibited in the small section of the island developed for electrical transmission, but it accounts for only a small segment of the total island and recreation is rare. No anticipated effects on recreation from subsea cable. Private parcels may be acquired or state-owned parcels may be leased. Recreation will not be significantly impacted. dBA: decibel A MBTA: Migratory Bird Treaty Act Augustine Island Interconnection Feasibility Study Report 31 December 2024 7. PROJECT SCHEDULE A project of this magnitude will take several years to complete from the initial studies and design through construction and commissioning. A rough estimate of 15 years is appropriate for the interconnection. Depending on the sequencing of activities, the project may take much longer to complete, but it is unlikely to be significantly shorter given that some activities cannot be conducted in parallel. The NEPA environmental review process is on the critical path for project lead times and can take an additional 2 to 3 years for an EIS instead of an EA. A key component in the environmental review process is to coordinate early with agencies, define the decision-making process, and set clear schedules for preparing the documents and studies. This approach will streamline the NEPA and permitting processes. Lead times for procurement of switchgears, transformers, and breakers is on the critical path, presently taking up to 4 years. Reserving a cable laying vessel must be coordinated in advance but can be completed during equipment procurement. Table 7-1 provides a conceptual schedule for the project in ranges of months and in typical order of sequencing. Neither one of the routing options will require significantly more or less time than another. Using an HVAC solution would not significantly alter the schedule duration either. Table 7-1: Conceptual Project Schedule Duration Item Duration Notes Pre-design and pre-application studies (geotechnical, wetland, hydrographic, cultural, land ownership) 12 to 24 months Accommodates potential issues with availability of vessel for hydrographic studies NEPA review EA: 12 to 24 months EIS: 36 to 60 months Includes time for public review and comment Negotiation and approval of land leases and ROW 24 to 36 months Permitting (excluding NEPA) 12 to 24 months Engineering design 12 months Procurement: converter plant 44 months Procurement: subsea cable 44 months Procurement: substation equipment 12 to 48 months Procured through Korea, Japan, or Vietnam Procurement: overhead materials equipment 12 to 18 months Procured in North America; will depend on the amount needing to be purchased Mobilization of equipment to site 6 to 8 months Must be conducted when Cook Inlet is ice-free; assumed by barge from Port of Alaska (Anchorage) to Augustine and Homer, then truck from Homer to Anchor Point Construction: subsea cable 26 months If Cook Inlet remains ice-free, this could be conducted continuously, contingent on other weather issues with wind and storms Construction: substations and converter stations build 18 to 24 months Augustine Island Interconnection Feasibility Study Report 32 December 2024 Item Duration Notes Construction: overhead lines 12 to 18 months Depends on the method of installation (e.g., land access or via helicopter for construction materials) Commissioning and takeover 3 to 6 months Overall duration 12 to 16 years Assumes that some permitting and design activities happen concurrently, and some construction activities happen concurrently EA: environmental assessment EIS: environmental impact statement NEPA: National Environmental Policy Act ROW: right-of-way Augustine Island Interconnection Feasibility Study Report 33 December 2024 8. REFERENCES DNR. 2022. South Augustine Island Noncompetitive Geothermal Prospecting Permit Preliminary Written Finding of the Director. Alaska Department of Natural Resources. April 28. DNR. 2024. 2024 Augustine Island Noncompetitive Geothermal Prospecting Permit Final Written Finding of the Director. Division of Oil and Gas. January 10. USACE. 2008. Erosion Information Paper—Anchor Point, Alaska. Alaska Baseline Erosion Assessment. United States Army Corps of Engineers. April 29. https://www.poa.usace.army.mil/Portals/34/docs/civilworks/BEA/Anchor%20Point_Final% 20Report.pdf Augustine Island Interconnection Feasibility Study APPENDIX A Routing Maps P:\Clients\Alaska Energy and Electric Cooperative\PNA0023_Augustine FS\06_DataManagement_Visualization\GIS\Projects\Augustine_Explore\Augustine_Explore.aprx\Fig01-1_FullCable 12/11/2024 4:23 PM (Eric.Petersen) 0 10 Kilometers ³Figure PNA0023 December 2024 Cook Inlet, Alaska Proposed Routes for Augustine Interconnect 1-1 Legend Augustine Proposed Locations Proposed Cables Cook Inlet Bathymetry (depth in m) 0 211 Notes: ArcticDEM hillshades are shown for Augustine and Anchor Point area. Bathymetry is shown in depth below mean high water (MHW). Proposed Geothermal Plant Landfall Option 1 Landfall Option 2 Anchor Point Substation P:\Clients\Alaska Energy and Electric Cooperative\PNA0023_Augustine FS\06_DataManagement_Visualization\GIS\Projects\Augustine_Explore\Augustine_Explore.aprx\Fig01-2_Augustine_Cable_Detail 12/11/2024 4:23 PM (Eric.Petersen) 0 0.6 Kilometers ³Figure PNA0023 December 2024 Mt Augustine Cook Inlet, Alaska Proposed Landfall and Overhead Route at Augustine Island 1-2 Legend Proposed Cables Overhead Subsea Landfall/Underground Augustine Proposed Locations Cable End Sealing Compound Geothermal Leases Elevation Contours 100 m Interval Notes: Basemap is ArcticDEM hillshade overlaid on imagery. Elevation contours with 100 m intervals are derived from ArcticDEM. 1 0 6 . 1 7 km 0 . 6 4 km2.72 km2.78 km Proposed Geothermal Plant Option A Option B P:\Clients\Alaska Energy and Electric Cooperative\PNA0023_Augustine FS\06_DataManagement_Visualization\GIS\Projects\Augustine_Explore\Augustine_Explore.aprx\Fig01-3_AnchorPoint_Option1_Detail 12/11/2024 4:59 PM (Eric.Petersen) 0 300 Meters ³Figure PNA0023 December 2024 Anchor Point Cook Inlet, Alaska Proposed Landfall and Overhead Route at Anchor Point - Option 1 1-3 Legend Proposed Cables Overhead Subsea Landfall/Underground Cable End Sealing Compound Substation Expansion and Converter Station SterlingHwyAgustaLnSterl i ngHwyWhisk e y G u lchStNorthForkAnchorRiverSarah Ave Chil ly wind D r N o rth F o rk A n c h o r R iv e r NForkRdGill h a m C t SarahLn M a r k Ln 0.49 km 106.17 km3.21 km Anchor Point Substation P:\Clients\Alaska Energy and Electric Cooperative\PNA0023_Augustine FS\06_DataManagement_Visualization\GIS\Projects\Augustine_Explore\Augustine_Explore.aprx\Fig01-4_AnchorPoint_Option2_Detail_Portrait 12/11/2024 4:59 PM (Eric.Petersen)0 940 Meters ³Figure PNA0023 December 2024 Anchor Point Cook Inlet, Alaska Proposed Landfall and Overhead Route at Anchor Point - Option 2/3 1-4 Legend Proposed Cables Overhead Subsea Landfall/Underground Substation Expansion and Converter Station Cable End Sealing Compound Est e r AveGranrossStAgustaLn SterlingHwyA n c h o r P o i n t DanverStS c hool S t Mof f i tPl Fi r e weed M e adow s Golf Cou r se A n c ho r Riv er S tate R ec r ea tion A r ea NForkRdGr i ne r Ave Sterl i n g Hwy Old Sterl i n gHwy 1 Ol d S te r li ngHwyLukeRd0.72 km 102.04 km 2.66 km 5.84 kmAnchor PointSubstation P:\Clients\Alaska Energy and Electric Cooperative\PNA0023_Augustine FS\06_DataManagement_Visualization\GIS\Projects\Augustine_Explore\Augustine_Explore.aprx\Fig02_Wetlands 12/11/2024 4:59 PM (Eric.Petersen)0 1,040 Meters ³Figure PNA0023 December 2024 Anchor Point Cook Inlet, Alaska Wetlands and Waterways, Anchor Point Area 2 Legend Proposed Cables Overhead Subsea Landfall/Underground Cable End Sealing Compound Substation Expansion and Converter Station Existing Anchor Point Area Conductor Wetland, Class PEM Wetland, Class PFO Wetland, Class PSS Wetland, Class PUB Riverine InterconnectOption 1 Interconnect Options 2 and 3 Anchor PointSubstation Note: Wetlands from NWI Database P:\Clients\Alaska Energy and Electric Cooperative\PNA0023_Augustine FS\06_DataManagement_Visualization\GIS\Projects\Augustine_Explore\Augustine_Explore.aprx\Fig03_LandOwnership 12/11/2024 4:59 PM (Eric.Petersen)³Figure PNA0023 December 2024 Anchor Point Cook Inlet, Alaska Land Ownership, Anchor Point Area 3 Legend Mineral Permit/Lease State of Alaska DNR Property Kenai Peninsula Borough Property Kenai Trust Property University of Alaska Property Property Parcels: Other Owners Proposed Cables Overhead Subsea Landfall/Underground Substation Expansion and Converter Station Cable End Sealing Compound InterconnectOption 1 Interconnect Options 2 and 3 Anchor PointSubstation 0 1,000 Meters Augustine Island Interconnection Feasibility Study APPENDIX B Electrical Diagrams Augustine Island Interconnection Feasibility Study APPENDIX C Cost Estimate OPTION 1 - AUGUSTINE TO NORTH OF ANCHOR POINT TO EXISTING SUBSTATION ROUGH ORDER OF MAGNITUDE COST ESTIMATE ON CONCEPTUAL DESIGN AUGUSTINE ISLAND INTERCONNECT FEASIBILITY STUDY Activity Unit Amount Unit Cost Extended Cost Extended Cost (-30%) Extended Cost (+50%)Assumptions Project Management and Administration ls 1 $805,066 $805,066 $402,540 $1,207,600 % of total project labor and studies (no materials and equipment) NEPA Permitting ls 1 $100,000 $100,000 $50,000 $150,000 Assumes an EA or less. EIS would be 5-10X an EA Environmental Planning ls 1 $200,000 $200,000 $100,000 $300,000 Routing Studies - Cook Inlet ls 1 $1,250,000 $1,250,000 $625,000 $1,875,000 Vessel-based work, includes geotechnical, hydrographic plus reporting Archeology Studies - Cook Inlet ls 1 $2,000,000 $2,000,000 $1,000,000 $3,000,000 Vessel-based work, includes archeological plus reporting Geotechnical - Onshore and Nearshore ls 1 $1,000,000 $1,000,000 $500,000 $1,500,000 Mobilization of rig, investigation for HDD, facilities, towers, lab testing, reporting Leasing, ROW, Land ls 1 $500,000 $500,000 $350,000 $750,000 Highly variable based on negotiations with private property owners Engineering Design - Transmission ls 1 $1,850,660 $1,850,660 $1,295,462 $2,775,990 Engineering Design - Substation ls 1 $1,150,000 $1,150,000 $805,000 $1,725,000 Subtotal $8,855,726 $6,199,010 $13,283,590 Mobilization of Equipment from Mfg to Anchorage ls 1 $1,740,000 $1,740,000 $1,218,000 $2,610,000 Assumes vessel transport from Asia to Anchorage for transformers and from Europe to Anchorage for converters Railbelt Mobilization to Anchor Point ls 1 $90,000 $90,000 $63,000 $135,000 Assumes four heavy-haul loads from Homer to Anchor Point Barging Mobilization Anchorage to Augustine/Homer ls 1 $1,160,109 $1,160,109 $812,076 $1,740,164 Pricing for a 6-day barge charter at current fuel pricing Charter Aircraft Transport Homer to Augustine RTs 56 $3,015 $168,840 $118,188 $253,260 Assumes weekly helicopter RT from Homer for 13 month duration Subtotal $3,158,949 $2,211,270 $4,738,430 Generator Step Up Transformer Unit 2 $3,465,000 $6,930,000 $4,851,000 $10,395,000 HV Breakers Unit 2 $235,000 $470,000 $329,000 $705,000 115kV GOAB Switch Unit 6 $14,167 $85,000 $59,500 $127,500 2000A CCVT Unit 6 $12,000 $72,000 $50,400 $108,000 Arresters Unit 6 $1,750 $10,500 $7,350 $15,750 34.5kV GOAB Switch Unit 2 $7,250 $14,500 $10,150 $21,750 2000A MV Switchgear and Relay Building Unit 1 $990,000 $990,000 $693,000 $1,485,000 inlcudes all relays Package Substation ls 1 $639,500 $639,500 $447,650 $959,250 All other material, MV/LV materials, steel structures, grounding, metering, etc... Construction ls 1 $2,762,500 $2,762,500 $1,933,750 $4,143,750 Civil and Electrical, inlcudes consumables (concrete, gravel, fencing, etc...) Temporary Construction Camp mo 13 $186,000 $2,418,000 $1,692,600 $3,627,000 Assumes camp durations of 9 months (Yr 8-9) and 4 months (Yr 10) for 24-person camp, 2x setup/tear down Testing and Commissioning ls 1 $200,000 $200,000 $140,000 $300,000 Subtotal $14,592,000 $10,214,410 $21,888,010 HVDC Converter Station unit 2 $72,500,000 $145,000,000 $101,500,000 $217,500,000 Modular system from manufacturer OH Lines - Augustine km 2 $101,800 $203,600 $142,520 $305,400 HVDC Cable sealing end compound - Augustine unit 1 $102,500 $102,500 $71,750 $153,750 Subsea cable - HDD sections - Augustine km 0.5 $1,394,000 $697,000 $487,900 $1,045,500 OH Lines - Anchor Point km 2.8 $101,800 $285,040 $199,528 $427,560 Cable sealing end compound - Anchor Point unit 1 $102,500 $102,500 $71,750 $153,750 Subsea cable - HDD sections - Anchor Point km 1.23 $1,394,000 $1,714,620 $1,200,234 $2,571,930 Subsea cable km 111 $810,000 $89,910,000 $62,937,000 $134,865,000 Estimated based on copper pricing OH lines installation - Anchor Point km 2.8 $34,800 $97,440 $68,208 $146,160 OH lines installation - Augustine km 2 $34,800 $69,600 $48,720 $104,400 Cable installation HDD - Augustine Island km 0.5 $170,000 $85,000 $59,500 $127,500 Cable installation HDD - Anchor Point km 1.23 $170,000 $209,100 $146,370 $313,650 Subsea cable installation km 111 $362,500 $40,237,500 $28,166,250 $60,356,250 Construction ls 1 $5,122,100 $5,122,100 $3,585,470 $7,683,150 Civil works Comissioning ls 1 $442,065 $442,065 $309,446 $663,098 Subtotal $283,836,000 $198,685,200 $425,754,000 Main Power Transformer Unit 1 $3,450,000 $3,450,000 $2,415,000 $5,175,000 Due to loading need to replace existing with new 70/93.1/116.3 MVA 115/29.94 Delta/Wye Transformer HV Breakers Unit 4 $295,000 $1,180,000 $826,000 $1,770,000 1200A, lead time 110-114 weeks 115kV GOAB Switches Unit 8 $14,250 $114,000 $79,800 $171,000 1200A 115kV GOAB Switches w/ MO Unit 4 $21,750 $87,000 $60,900 $130,500 1200A 115kV CCVTs Unit 12 $12,000 $144,000 $100,800 $216,000 Arresters Unit 9 $1,750 $15,750 $11,025 $23,625 98kV MCOV Packaged Control Building Unit 1 $740,000 $740,000 $518,000 $1,110,000 Includes all relay panels Packaged Substation Materials ls 1 $1,103,890 $1,103,890 $772,723 $1,655,835 All other material, MV/LV materials, steel structures, grounding, metering, etc... Construction ls 1 $3,158,300 $3,158,300 $2,210,810 $4,737,450 Civil and Electrical, inlcudes consumables (concrete, gravel, fencing, etc...) Testing and Commissioning ls 1 $250,000 $250,000 $175,000 $375,000 Subtotal $10,242,940 $7,170,060 $15,364,410 Grand Total $320,685,615 $224,479,940 $481,028,430 Design, Engineering, Environmental, Permitting, and Project Management Mobilization/Demobilization (Fixed Costs) Materials and Construction Operations - Augustine Island Substation to Anchor Point Substation Transmission Materials and Construction Operations - Anchor Point Substation Materials and Construction Operations - Augustine Island Substation OPTION 2 - AUGUSTINE TO SOUTH OF ANCHOR POINT TO EXISTING SUBSTATION ROUGH ORDER OF MAGNITUDE COST ESTIMATE AUGUSTINE ISLAND INTERCONNECT FEASIBILITY STUDY Activity Unit Amount Unit Cost Extended Cost Extended Cost (-30%) Extended Cost (+50%)Assumptions Project Management and Administration ls 1 $805,066 $805,066 $402,540 $1,207,600 % of total project labor and studies (no materials and equipment) NEPA Permitting ls 1 $100,000 $100,000 $50,000 $150,000 Assumes an EA or less. EIS would be 5-10X an EA Environmental Planning ls 1 $200,000 $200,000 $100,000 $300,000 Routing Studies - Cook Inlet ls 1 $1,250,000 $1,250,000 $625,000 $1,875,000 Vessel-based work, includes geotechnical, hydrographic plus reporting Archeology Studies - Cook Inlet ls 1 $2,000,000 $2,000,000 $1,000,000 $3,000,000 Vessel-based work, includes archeological plus reporting Geotechnical - Onshore and Nearshore ls 1 $1,000,000 $1,000,000 $500,000 $1,500,000 Mobilization of rig, investigation for HDD, facilities, towers, lab testing, reporting Leasing, ROW, Land ls 1 $500,000 $500,000 $350,000 $750,000 Highly variable based on negotiations with private property owners Engineering Design - Transmission ls 1 $1,850,660 $1,850,660 $1,295,462 $2,775,990 Engineering Design - Substation ls 1 $1,150,000 $1,150,000 $805,000 $1,725,000 Subtotal $8,855,726 $6,199,010 $13,283,590 Mobilization of Equipment from Mfg to Anchorage ls 1 $1,740,000 $1,740,000 $1,218,000 $2,610,000 Assumes vessel transport from Asia to Anchorage on a charter day rate, different vessel for transformer and converter Railbelt Mobilization to Anchor Point ls 1 $90,000 $90,000 $63,000 $135,000 Assumes four heavy-haul loads from Homer to Anchor Point Barging Mobilization Anchorage to Augustine/Homer ls 1 $1,160,109 $1,160,109 $812,076 $1,740,164 Pricing for a 6-day barge charter at current fuel pricing Charter Aircraft Transport Homer to Augustine RTs 56 $3,015 $168,840 $118,188 $253,260 Assumes weekly helicopter RT from Homer for 13 month duration Subtotal $3,158,949 $2,211,270 $4,738,430 Generator Step Up Transformer Unit 2 $3,465,000 $6,930,000 $4,851,000 $10,395,000 HV Breakers Unit 2 $235,000 $470,000 $329,000 $705,000 115kV GOAB Switch Unit 6 $14,167 $85,000 $59,500 $127,500 2000A CCVT Unit 6 $12,000 $72,000 $50,400 $108,000 Arresters Unit 6 $1,750 $10,500 $7,350 $15,750 34.5kV GOAB Switch Unit 2 $7,250 $14,500 $10,150 $21,750 2000A MV Switchgear and Relay Building Unit 1 $990,000 $990,000 $693,000 $1,485,000 inlcudes all relays Package Substation ls 1 $639,500 $639,500 $447,650 $959,250 All other material, MV/LV materials, steel structures, grounding, metering, etc... Construction Cost ls 1 $2,762,500 $2,762,500 $1,933,750 $4,143,750 Civil and Electrical, inlcudes consumables (concrete, gravel, fencing, etc...) Temporary Construction Camp mo 13 $186,000 $2,418,000 $1,692,600 $3,627,000 Assumes camp durations of 9 months (Yr 8-9) and 4 months (Yr 10) for 24-person camp, 2x setup/tear down Testing and Commissioning ls 1 $200,000 $200,000 $140,000 $300,000 Subtotal $14,592,000 $10,214,410 $21,888,010 HVDC Converter Station unit 2 $72,500,000 $145,000,000 $101,500,000 $217,500,000 Modular system from manufacturer OH Lines - Augustine km 2 $101,800 $203,600 $142,520 $305,400 HVDC Cable sealing end compound - Augustine unit 1 $102,500 $102,500 $71,750 $153,750 Subsea cable - HDD sections - Augustine km 0.5 $1,394,000 $697,000 $487,900 $1,045,500 OH lines - Anchor Point km 8.3 $101,800 $844,940 $591,458 $1,267,410 Cable sealing end compound - Anchor Point unit 1 $102,500 $102,500 $71,750 $153,750 Subsea cable - HDD sections - Anchor Point km 2.05 $1,394,000 $2,857,700 $2,000,390 $4,286,550 Subsea cable km 111 $810,000 $89,910,000 $62,937,000 $134,865,000 Estimated based on copper pricing OH lines installation - Anchor Point km 8.3 $34,800 $288,840 $202,188 $433,260 OH lines installation - Augustine km 2 $34,800 $69,600 $48,720 $104,400 Cable installation HDD - Augustine Island km 0.5 $170,000 $85,000 $59,500 $127,500 Cable installation HDD - Anchor Point km 2.05 $170,000 $348,500 $243,950 $522,750 Subsea cable installation km 111 $362,500 $40,237,500 $28,166,250 $60,356,250 Construction ls 1 $5,122,100 $5,122,100 $3,585,470 $7,683,150 Civil works Comissioning ls 1 $442,065 $442,065 $309,446 $663,098 Subtotal $286,311,845 $200,418,292 $429,467,768 Main Power Transformer Unit 1 $3,450,000 $3,450,000 $2,415,000 $5,175,000 Due to loading need to replace existing with new 70/93.1/116.3 MVA 115/29.94 Delta/Wye Transformer HV Breakers Unit 4 $295,000 $1,180,000 $826,000 $1,770,000 1200A, lead time 110-114 weeks 115kV GOAB Switches Unit 8 $14,250 $114,000 $79,800 $171,000 1200A 115kV GOAB Switches w/ MO Unit 4 $21,750 $87,000 $60,900 $130,500 1200A 115kV CCVTs Unit 12 $12,000 $144,000 $100,800 $216,000 Arresters Unit 9 $1,750 $15,750 $11,025 $23,625 98kV MCOV Packaged Control Building Unit 1 $740,000 $740,000 $518,000 $1,110,000 Includes all relay panels Packaged Substation Materials Unit 1 $1,103,890 $1,103,890 $772,723 $1,655,835 All other material, MV/LV materials, steel structures, grounding, metering, etc... Construction Cost Unit 1 $3,158,300 $3,158,300 $2,210,810 $4,737,450 Civil and Electrical, inlcudes consumables (concrete, gravel, fencing, etc...) and Site Management Commissioning and Testing Unit 1 $250,000 $250,000 $175,000 $375,000 Construction Costs $10,242,940 $7,170,060 $15,364,410 Grand Total $323,161,460 $226,213,042 $484,742,208 Design, Engineering, Environmental, Permitting, and Project Management Mobilization/Demobilization (Fixed Costs) Materials and Construction Operations - Augustine Substation to Anchor Point Substation Materials and Construction Operations - Anchor Point Substation Materials and Construction Operations - Augustine Island Substation OPTION 3 - AUGUSTINE TO SOUTH OF ANCHOR POINT TO NEW SUBSTATION ROUGH ORDER OF MAGNITUDE COST ESTIMATE AUGUSTINE ISLAND INTERCONNECT FEASIBILITY STUDY Activity Unit Amount Unit Cost Extended Cost Extended Cost (-30%) Extended Cost (+50%)Assumptions Project Management and Administration ls 1 $805,066 $805,066 $402,540 $1,207,600 % of total project labor and studies (no materials and equipment) NEPA Permitting ls 1 $100,000 $100,000 $50,000 $150,000 Assumes an EA or less. EIS would be 5-10X an EA Environmental Planning ls 1 $200,000 $200,000 $100,000 $300,000 Routing Studies - Cook Inlet ls 1 $1,250,000 $1,250,000 $625,000 $1,875,000 Vessel-based work, includes geotechnical, hydrographic plus reporting Archeology Studies - Cook Inlet ls 1 $2,000,000 $2,000,000 $1,000,000 $3,000,000 Vessel-based work, includes archeological plus reporting Geotechnical - Onshore and Nearshore ls 1 $1,000,000 $1,000,000 $500,000 $1,500,000 Mobilization of rig, investigation for HDD, facilities, towers, lab testing, reporting Leasing, ROW, Land ls 1 $500,000 $500,000 $350,000 $750,000 Highly variable based on negotiations with private property owners Engineering Design - Transmission ls 1 $1,850,660 $1,850,660 $1,295,462 $2,775,990 Engineering Design - Substation ls 1 $1,150,000 $1,150,000 $805,000 $1,725,000 Total Planning $8,855,726 $6,199,010 $13,283,590 Mobilization of Equipment from Mfg to Anchorage ls 1 $1,740,000 $1,740,000 $1,218,000 $2,610,000 Assumes vessel transport from Asia to Anchorage on a charter day rate, different vessel for transformer and converter Railbelt Mobilization to Anchor Point ls 1 $90,000 $90,000 $63,000 $135,000 Assumes four heavy-haul loads from Homer to Anchor Point Barging Mobilization Anchorage to Augustine/Homer ls 1 $1,160,109 $1,160,109 $812,076 $1,740,164 Pricing for a 6-day barge charter at current fuel pricing Charter Aircraft Transport Homer to Augustine RTs 56 $3,015 $168,840 $118,188 $253,260 Assumes weekly helicopter RT from Homer for 13 month duration Total Mobilization/Demobilization $3,158,949 $2,211,270 $4,738,430 Generator Step Up Transformer Unit 2 $3,465,000 $6,930,000 $4,851,000 $10,395,000 HV Breakers Unit 2 $235,000 $470,000 $329,000 $705,000 115kV GOAB Switch Unit 6 $14,167 $85,000 $59,500 $127,500 2000A CCVT Unit 6 $12,000 $72,000 $50,400 $108,000 Arresters Unit 6 $1,750 $10,500 $7,350 $15,750 34.5kV GOAB Switch Unit 2 $7,250 $14,500 $10,150 $21,750 2000A MV Switchgear and Relay Building Unit 1 $990,000 $990,000 $693,000 $1,485,000 inlcudes all relays Package Substation ls 1 $639,500 $639,500 $447,650 $959,250 All other material, MV/LV materials, steel structures, grounding, metering, etc... Construction Cost ls 1 $2,762,500 $2,762,500 $1,933,750 $4,143,750 Civil and Electrical, inlcudes consumables (concrete, gravel, fencing, etc...) Temporary Construction Camp mo 13 $186,000 $2,418,000 $1,692,600 $3,627,000 Assumes camp durations of 9 months (Yr 8-9) and 4 months (Yr 10) for 24-person camp, 2x setup/tear down Testing and Commissioning ls 1 $200,000 $200,000 $140,000 $300,000 Construction Costs $14,592,000 $10,214,410 $21,888,010 HVDC Converter Station unit 2 $72,500,000 $145,000,000 $101,500,000 $217,500,000 Modular system from manufacturer OH Lines - Augustine km 2 $101,800 $203,600 $142,520 $305,400 HVDC Cable sealing end compound - Augustine unit 1 $102,500 $102,500 $71,750 $153,750 Subsea cable - HDD sections - Augustine km 0.5 $1,394,000 $697,000 $487,900 $1,045,500 Overhead lines - Anchor Point km 8.3 $101,800 $844,940 $591,458 $1,267,410 Cable sealing end compound - Anchor Point unit 1 $102,500 $102,500 $71,750 $153,750 Subsea cable - HDD sections - Anchor Point km 2.05 $1,394,000 $2,857,700 $2,000,390 $4,286,550 Subsea cable km 111 $810,000 $89,910,000 $62,937,000 $134,865,000 Estimated based on copper pricing OH lines installation - Anchor Point km 8.3 $34,800 $288,840 $202,188 $433,260 OH lines installation - Augustine km 2 $34,800 $69,600 $48,720 $104,400 Cable installation HDD - Augustine Island km 0.5 $170,000 $85,000 $59,500 $127,500 Cable installation HDD - Anchor Point km 2.05 $170,000 $348,500 $243,950 $522,750 Subsea cable installation km 111 $362,500 $40,237,500 $28,166,250 $60,356,250 Construction ls 1 $5,087,330 $5,087,330 $3,561,131 $7,630,995 Civil works Comissioning ls 1 $436,845 $436,845 $305,792 $655,268 Construction Costs $286,271,855 $200,390,299 $429,407,783 Main Power Transformer Unit 1 $3,450,000 $3,450,000 $2,415,000 $5,175,000 due to loading need to replace existing with new 70/93.1/116.3 MVA 115/29.94 Delta/Wye Transformer HV Breakers Unit 4 $295,000 $1,180,000 $826,000 $1,770,000 1200A, lead time 110-114 weeks 115kV GOAB Switches Unit 8 $14,250 $114,000 $79,800 $171,000 1200A 115kV GOAB Switches w/ MO Unit 4 $21,750 $87,000 $60,900 $130,500 1200A 115kV CCVTs Unit 12 $12,000 $144,000 $100,800 $216,000 Arresters Unit 9 $1,750 $15,750 $11,025 $23,625 98kV MCOV Packaged Control Building Unit 1 $740,000 $740,000 $518,000 $1,110,000 Includes all relay panels Packaged Substation Materials Unit 1 $1,251,408 $1,251,408 $875,986 $1,877,112 All other material, MV/LV materials, steel structures, grounding, metering, etc... Construction Cost Unit 1 $3,833,319 $3,833,319 $2,683,323 $5,749,979 Civil and Electrical, inlcudes consumables (concrete, gravel, fencing, etc...) Commissioning and Testing Unit 1 $250,000 $250,000 $175,000 $375,000 Construction Costs $10,815,477 $7,570,840 $16,223,220 Grand Total $323,694,007 $226,585,829 $485,541,033 Design, Engineering, Environmental, Permitting, and Project Management Mobilization/Demobilization (Fixed Costs) Materials and Construction Operations - Augustine Substation to Anchor Point New Substation Materials and Construction Operations - Anchor Point New Substation Materials and Construction Operations - Augustine Island Substation Cost Estimate 1 December 2024 1. COST ESTIMATE AND ASSUMPTIONS 1.1 Engineering Design The engineering design consists of the two substations, the overhead circuits on both ends, the subsea cable and AC to DC conversion, and integration across the entire interconnect. Engineering design is estimated as the following: • The conversion facility is modular and will be undertaken by the manufacturer, so is included in equipment costs. However, the design costs associated with technical parameters and civil works design and included. • Design is assumed to be straightforward for HDD at Augustine, using a cofferdam at the point of entry into Cook Inlet. • Design for the HDD at Anchor Point is assumed to have the cable sealing end compound very close to the entry point for HDD to avoid the need for an onshore transitional joint pit. • Routing hydrographic and geotechnical studies will be conducted using a specialized vessel and equipment, virbacores or gravity cores, and 700 miles of multibeam bathymetry, side-scan sonar, and magnetometer. • Routing archeological studies will be conducted using a specialized vessel and equipment. • Overhead transmission lines design assumes a simple T-type arrangement for a single DC circuit on Augustine and on Anchor Point. • Overhead cable routing geotechnical studies on both Augustine Island and within Anchor Point includes marine jack-up and conventional drill rigs, nearshore borings for HDD, onshore facilites, and transmission towers. • Reporting and data analysis costs are included for the studies. 1.2 Materials Materials consist primarily of conductor, but also overhead mounting poles, conduit for HDD burial, insulators, grounding, and mounting hardware. • Subsea HVDC copper conductored cable is estimated using the London Metal Exchange average price for copper in 2024 of $9,740 per ton of copper. • Subsea cables and cable sealing ends have been assumed to be manufactured in either Europe or Southeast Asia (e.g., South Korea). 1.3 Equipment Equipment consists of HVAC switchgear, metering current and voltage transformers, busbars etc. It also includes all the equipment associated with the HVDC converter station e.g., converter Cost Estimate 2 December 2024 transformer, DC switchgear, AC and DC filters, voltage dividers, insulated-gate bipolar transistor valves, control systems, etc. • The HVDC converters are modular and assumed to be manufactured in Europe. However, some components such as the AC and DC filters and converter transformers could be manufactured in North America which could reduce the cost of the converter station. • Transformers are assumed to be manufactured in Asia. 1.4 Construction Construction includes the earthworks to prepare the substation site, converter site, erect towers and overhead lines, and also earthworks to prepare staging sites. No costs are included for building infrastructure. • Subsea cable length has been allowed for to cover the fluctuations in elevation along the seabed. • Average daily hire rate for a cable laying vessel is approximately $80,000 to $120,000. A typical transit time would be 35 to 45 days. The vessel would collect the cables from the manufacturer and bring them to the site for laying. • HDD is assumed to be needed at both ends, staging area needed for pulling the cable through conduit • Assumes local Alaska labor with specialist site supervision provided by the manufacturer • Assumes overhead lines can be constructed using ground mounted plant and equipment. It excludes the costs associated with temporary roads to access the overhead line route or the use of helicopters in the transportation of materials and personnel. If helicopters and temporary roads are needed for construction, assume additional costs.  Approximately $3k per trip for use of helicopter for transport of personnel and materials should the ground conditions dictate that this is the best method.  Approximately $27k per mile for the construction of temporary access roads along the overhead line routes on Augustine Island and Anchor Point. • Civil works assumes construction labor will be local and not require housing on Anchor Point. Costs for a temporary construction camp are included in the estimate for Augustin. • Civil works assumes heavy equipment will be sourced locally on the Kenai. 1.5 Commissioning Commissioning is needed for each component of the design as well as the system as a whole. • Converter stations will be commissioned by specialists from the manufacturer. • Commissioning engineers will be sourced locally from Alaska Augustine Island Interconnection Feasibility Study APPENDIX D Permitting Matrix APPENDIX D - PERMITTING MATRIX Agency Permit Description Applicable Estimate Agency Review Time Alaska DEC 401 WQC Alaska Department of Environmental Conservation (DEC) conducts Section 401 certification reviews of projects in Alaska in regards to federal permits from USACE. If the use of a nationwide permit (NWP) or individual permit (IP) is required, it would trigger Alaska Department of Environmental Conservation (DEC) 401 WQC. This requirement includes compliance with erosion control, post- construction total suspended solids (TSS) control, and sedimentation control best management practices (BMPs). Yes 90-days Alaska DEC Air Quality Construction Permit This permit ensures that the construction activities comply with air quality standards and regulations to protect the environment and public health. The use of vessels and heavy equipment may require air permitting and dispersion modeling. Maybe 6-9 months Alaska DEC APDES Construction General Permit APDES Construction General Permit is required if stormwater discharge occurs from a construction site disturbing 1 acre or more of land. Activities associated with unrefined oil, including pipelines, are exempt from this requirement. For construction projects disturbing greater than 1 acre, a SWPPP is required. For projects disturbing greater than 5 acres and located outside the area of a permitted MS4, a Notice of Intent (NOI) and SWPPP must be submitted to Alaska Department of Environmental Conservation (DEC). For projects disturbing greater than 5 acres and located inside the area of a permitted MS4, the SWPPP must be submitted to the MS4 prior to the NOI being submitted to the DEC. For projects less than 1 acre, the plan would be retained on-site and not submitted to agency. A generally applicable construction SWPPP template is available from the Alaska Department of Environmental Conservation (DEC) or EPA's website. Yes 30 days Alaska DEC APDES Excavation Dewatering General Permit Dewatering discharges eligible for coverage under this general permit consist of water pumped from excavation areas through the use of temporary dewatering wells or submersible pumps to lower the water table to support a construction activity. The dewatering of accumulated groundwater and stormwater that accumulates within an excavation area is an authorized discharge under the permit. The permit provides discharge authorization for dewatering conducted within 1,500 feet of a permit defined “DEC-identified contaminated site” although special permit conditions apply, and additional requirements may be added in the discharge authorization. Maybe 30 days Alaska DF&G Alaska Threatened and Endangered Species Regulations These laws and regulations protect T&E species in Alaska by prohibiting the taking, possession, transportation, or sale of protected species without the issuance of a permit. Several species are listed as occurring in Kenai Peninsula Borough. Recommend initiation of coordination with Alaska Department of Fish & Game (ADF&G) to confirm no impacts with selected route. Yes 60 days Alaska DF&G Fish Habitat Permit A permit is required for projects that involve water withdrawal or an activity that may have an impact on fish passage and the waterbody supports resident or anadromous fish.Maybe 4-6 weeks Alaska DF&G Special Area Permit A project/activity located within a legislatively designated Special Area (state game refuge, critical habitat area, or wildlife sanctuary) will require a permit.Maybe 4-6 weeks Alaska DOT & PF Oversize/Overweight Permit For construction equipment to use or cross state roads exceeding the size and weight limits.Maybe 1 day 5 working days if superload Alaska DNR Land Use Permit Land use permits are used for used for use of any state-owned lands (including tidelands, shorelands, submerged lands). These permits will be needed for easements, development, transmission, and vehicle access. Yes 30 days Page 1 of 4 APPENDIX D - PERMITTING MATRIX Agency Permit Description Applicable Estimate Agency Review Time Alaska DNR Temporary Water Use Authorization Per 11 AAC 93.035 (a) (b) and 11 AAC 93.220, a temporary water use authorization must be received from DNR prior to: (1) the consumptive use of more than 5,000 gallons of water from a single source in a single day; or (2) the regular daily or recurring consumptive use of more than 500 gallons per day (gpd) from a single source for more than 10 days per calendar year; or (3) the non-consumptive use of more than 30,000 gpd (0.05 cubic feet per second) from a single source; or (4) any water use that may adversely affect the water rights of other appropriators or the public interest. This permit is recommended if water will be withdrawn from waters of the State.The process is initiated with submittal of an application to DNR. Maybe 60 days Alaska SHPO (OHA)Section 106 Consultation Process, National Historic Preservation Act (NHPA) Consultation with State Historic Preservation Office and tribes is required if a federal nexus (e.g. ESA, Section 404 Permit) is identified. This is triggered by impacts to WOTUS. This will require a Phase 1A desktop review and then a Phase 1B to do a site assessment, including shovel tests and trenching in deeper areas. Coordinate with State Historic Preservation Office and the USACE to determine the appropriate site assessment protocols. Yes 90 days Bureau of Ocean Energy Management (BOEM)Outer Continental Shelf Planning and Coordination Prior to initiating environmental surveys for the offshore portion of the project, a Development Plan has to beprepared and submitted to BOEM that includes a narrative summary and maps to show proximity to the following features: • Air Quality • Archeological Assessments • Oil Spill Modeling • Deepwater Information (Chemical) • Artificial Reefs • Biological • Economic impact analysis • Military • Ordnance dumping Any study or survey has to be approved by BOEM before being completed. The cost includes coordination and review of existing data to determine what surveys and monitoring would be required. In addition, the route of the offshore transmissionline would be required to compare the proximity to the above referenced features. Yes 3 months EPA Construction Spill Prevention, Control, and Countermeasure (SPCC) Plan Construction SPCC required if total aggregate capacity of aboveground oil storage containers is greater than 1,320 gallons of oil or underground storage of oil is greater than 42,000 gallons. The need for a SPCC will depend on the total capacity of all oil stored at the Project Area during construction. ASTs and equipment that stores > or = 55 gallons of oil would be included in the stored amount. Maybe Automatic Multiple public and private land owners Individual landowner easement agreements Case-by-case consultation will be needed for several land owners in the routing options. Yes 6-12 months NOAA Incidental Take Permit for Marine Mammals Requires projects with a potential to affect marine mammals to consult with the NMFS/ USFWS. A marine mammal Protection Plan and monitoring will be required during construction. Maybe 5 to 15 months NOAA, National marine Fisheries Service (NMFS)Section 7, Endangered Species Acta Requires projects with a federal nexus to ensure that the action is not likely to jeopardize the continued existence of any threatened and endangered (T&E) species or result in the destruction or adverse modification of critical habitat of such species. The act requires projects affecting WOTUS to consult with the USFWS and the state agency responsible for fish and wildlife resources. Consultation with USFWS is required for potential impacts to T&E species. An evaluation of the selected site will need to be performed. The NMFS database can identify species with the potential to be impacted by the proposed project. Yes 90 - 165 days US Coast Guard (USCG) Navigation Concurrence via Bridge Permit USCG coordinates construction across navigable waterways. Coordination with USCG should be considered to coordinate vessel navigation during subsea cable laying.Maybe 6-12 months Page 2 of 4 APPENDIX D - PERMITTING MATRIX Agency Permit Description Applicable Estimate Agency Review Time USACE Alaska District / Alaska DEC Clean Water Act (CWA) Section 10 and Section 404 Nationwide Permit or Individual Permit Section 404, Permits for Dredged or Fill Material, regulates the discharge of dredged or fill material in jurisdictional wetlands and waters of the United States (WOTUS). Alaska is seeking to assume the dredge and fill program under Section 404 of the Clean Water Act (CWA). If approved, applications will go through the Alaska DEC instead of the USACE. Section 10 Navigable Waters include those waters subject to the ebb and flow of the tide shoreward to the mean high water mark and/or those waters that are presently used, or have been used in the past, or may be susceptible for use to transport interstate or foreign commerce. Section 10 Navigable Waters are regulated under the Rivers and Harbors Act of 1899. If impacts exceed those allowed under the Nationwide Permit Program (0.5 acre of impact), an Individual Permit (IP) may be required which entails additional coordination for clearance under NEPA and has an extended review period with no administratively designated review clock. Yes Individual Permit - 12-18 months USACE Alaska District / Alaska DEC CWA Section 408 Section 408 authorization is required for any alteration of a USACE Civil Works/USACE levee project to ensure the alteration does not cause adverse impacts. Section 408 is a threshold review, and, if required, must be obtained before the USACE can issue a Section 404 permit. The 408 approval process requires four steps: completeness determination, review and decision, final decision notification, and construction oversight. Yes 6-9 months USACE Alaska District / Alaska DEC Environmental Assessment Concurrent with a Section 404 Permit for review of the project for compliance with the National Environmental Policy Act (NEPA)Yes 12-24 months USFWS Section 7, Endangered Species Acta Requires projects with a federal nexus to ensure that the action is not likely to jeopardize the continued existence of any threatened and endangered (T&E) species or result in the destruction or adverse modification of critical habitat of such species. The act requires projects affecting WOTUS to consult with the USFWS and the state agency responsible for fish and wildlife resources. Consultation with USFWS is required for potential impacts to T&E species. An evaluation of the selected site will need to be performed. The Information for Planning and Consultation (IPaC) tool can identify species with the potential to be impacted by the proposed project. Yes 60 days USFWS Migratory Bird Treaty Act Compliance (MBTA) The MBTA regulates the take and harvest of migratory birds, their nests, and eggs. Regulated under UFSWS. Requires a pre-construction nesting survey within ~14 days of clearing activities if construction happens during nesting season (March 15 to September 15). Given that the facility will be located in Kenai Peninsula Borough, birds protected by MBTA may pass through or overwinter in this area and could occur in the Project Area. It is recommended to initiate construction outside of the nesting season (March 15 to September 15) to avoid impacts to nesting birds and their offspring. Nests should be avoided if observed during construction. No risk unless species intentionally killed. Yes N/A USFWS Bald and Golden Eagle Protection Act This law prohibits the take, possession, and commerce of golden eagles and bald eagles, their nests, and eggs except under certain specified conditions. An evaluation will need to occur to determine if suitable roosts exist within the project footprint boundaries. Yes N/A Kenai Peninsula Borough Special Waste Disposal Request Required for the disposal of special waste generated within Kenai Peninsula Borough. Wastes generated outside of the KPB and hazardous wastes are not accepted with this approval.Maybe 14 days Kenai Peninsula Borough Individual Utility Construction Project Required for utility construction projects within the Borough's right-of-way (ROW).Yes 90 days Kenai Peninsula Borough Floodplain Permitting The borough has floodplain regulations requiring permitting for development within floodplains. - Elevation certificate is required for development in a flood plain. The proposed route will need to be evaluated for being within floodplains. If the route is within a floodplain, permitting with the borough to allow for development within the floodplain will be required. Recommend contacting borough floodplain administrator to determine appropriate permit path. This may be applied for as part of the Multi-Agency Permit Application. Maybe 30 - 60 days Kenai Peninsula Borough Conditional Use Permit Conditional Use Permits are permits issued for projects that fall outside the normal permitting guidelines. They may be subject to special requirements, and must be approved by the KPB Planning Commission.Maybe 30 - 60 days Local Development Page 3 of 4 APPENDIX D - PERMITTING MATRIX Agency Permit Description Applicable Estimate Agency Review Time Kenai Peninsula Borough Minor Vegetation Permit A Minor Vegetation (MV) permit is required for all pruning, trimming, or removal of shrubs and/or hazard trees within the KPB 50-foot Habitat Protection District, including dead or diseased trees. These over-the-counter tree removal permits are completely free, and can be completed online, via email, or in person. This may be applied for as part of the Multi-Agency Permit Application. Maybe 30 - 60 days Kenai Peninsula Borough Preliminary and Final Plat Preliminary and final plats must be approved and recorded with the Borough.Yes 6 - 12 months Kenai Peninsula Borough Easement Application To obtain an easement from KPB land, an easement application must be approved. Platting process will need to be completed prior to the easement being granted.Yes 6 - 12 months Kenai Peninsula Borough Weight Restriction Waiver For construction equipment to use or cross borough roads exceeding the 50% weight restrictions on gravel roads and 75% weight restrictions on paved roads.Maybe 1 Week Page 4 of 4 Augustine Island Interconnection Feasibility Study APPENDIX E Environmental Scoring Matrix APPENDIX E ENVIRONMENTAL SCORING MATRIX Feature Measurement Ranking Weight (1-5)Features Score Features Score Topography: Total Climb Over Path Rise 2 160 320 409 818 Land Status / Ownership (Public) Number 1 1320 1320 5204 5204 Land Status / Ownership (Private) Number 2 3115 6230 13798 27596 Roadways and Roadway Crossings Number 2 4 8 9 18 Stream Crossings Number 2 1 2 2 4 Railroad Crossings Number 1 0 0 0 0 Existing Electrical Utilities Crossings Number 3 1 3 5 15 Wetlands (PEM: Palustrine Emergent) Distance 3 1749 5247 0 0 Wetlands (PSS: Palustrine Scrub-Shrub) Distance 4 2189 8756 9152 36608 Wetlands (PFO: Palustrine Forested) Distance 5 0 0 233 1165 Areas of Critical Environmental Concern Distance 5 0 0 0 0 US Fish and Wildlife Service Critical Habitat Distance 5 0 0 0 0 National Marine Fisheries Service Essential Fish Habitat Distance 4 0 0 0 0 Herd Management Areas Distance 2 0 0 0 0 Mature Forested Areas Distance 2 992 1984 3467 6934 Wilderness Areas and Wilderness Study Areas Distance 4 0 0 0 0 Cultural Resources Sites 5 0 0 1 5 Proximity to residential Houses (<250 ft) Number 5 14 70 49 245 Proximity to residential Houses (<500 ft) Number 3 40 120 90 270 Places of community gathering (churches, recreation centers, etc) Number 5 0 0 0 0 Option 1 Options 2/3 Augustine Island Interconnection Feasibility Study APPENDIX F Project Schedule AUGUSTINE INTERCONNECT SCHEDULE (PLANNING AND CONSTRUCTION) J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Concept Design Project start u Basis of Design Cable routing detailed design Sea Bed surveys Environmental surveys u Geotechnical surveys Survey reporting NEPA u ROW Land Use Technical parameters and specifications u Principal drawings Power system studies Scoping documentation RFP Release and Bids u Negotiation Finacial Investment Decision Contract Award u u Detailed design - switchgear and P&C systems Detailed design - transformers Detailed design - overhead lines Procurement - switchgear u Procurement - transformers u Procurement - overhead lines Shipping to site from manufacturers RFP Release and Bids u Negotiation Finacial Investment Decision Contract Award u Detailed Design - HVDC Subsea Cable u u u u Procurement - HVDC Subsea Cable u u u u u u u u Procurement - HVDC Converter transformer u Shipping to site from manufacturers Site Mobilization (both ends)u Enabling works Earthworks and Civils Erection Cold Commissioning Hot Commissioning Vessel mobilization with cable Onshore HDD Pre-install seabed survey Cable installation Post-install seabed survey Cold Commissioning Hot Commissioning Connection Date (Backfeed Available)u u u Synchronisation Take Over Construction - Subsea Cables Construction - Plant and Equipment Year 4Year 1 Procurement - Subsea Cables Year 2 Permitting and Leases Year 5 Procurement - Plant and Equipment Year 3 Detailed Design Page 1 of 2 AUGUSTINE INTERCONNECT SCHEDULE (PLANNING AND CONSTRUCTION) Concept Design Project start Basis of Design Cable routing detailed design Sea Bed surveys Environmental surveys Geotechnical surveys Survey reporting NEPA ROW Land Use Technical parameters and specifications Principal drawings Power system studies Scoping documentation RFP Release and Bids Negotiation Finacial Investment Decision Contract Award Detailed design - switchgear and P&C systems Detailed design - transformers Detailed design - overhead lines Procurement - switchgear Procurement - transformers Procurement - overhead lines Shipping to site from manufacturers RFP Release and Bids Negotiation Finacial Investment Decision Contract Award Detailed Design - HVDC Subsea Cable Procurement - HVDC Subsea Cable Procurement - HVDC Converter transformer Shipping to site from manufacturers Site Mobilization (both ends) Enabling works Earthworks and Civils Erection Cold Commissioning Hot Commissioning Vessel mobilization with cable Onshore HDD Pre-install seabed survey Cable installation Post-install seabed survey Cold Commissioning Hot Commissioning Connection Date (Backfeed Available) Synchronisation Take Over Construction - Subsea Cables Construction - Plant and Equipment Procurement - Subsea Cables Permitting and Leases Procurement - Plant and Equipment Detailed Design J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D u u u u u u u u u u u u u u u u Year 10Year 7 Year 9Year 6 Year 8 Page 2 of 2 Augustine Island Interconnection Feasibility Study APPENDIX G Supplemental Information Supplementary Information ii December 2024 TABLE OF CONTENTS 1. DETAILED EVALUATION OF HVAC AND HVDC ........................................................1 1.1 Evaluation of HVAC ....................................................................................................1 1.1.1 Critical Length ..................................................................................................1 1.1.2 Reactor Compensation .....................................................................................2 1.1.3 Cable Landfall ..................................................................................................4 1.1.4 Cable Sealing End Compound .........................................................................5 1.2 Evaluation of HVDC ....................................................................................................6 1.2.1 Technical Parameters .......................................................................................6 1.2.2 Current Source or Voltage Source Conversion ................................................7 1.2.3 DC to AC Conversion Station ..........................................................................8 2. CABLE INSTALLATION METHODS ..............................................................................11 2.1 Cable Laying Vessels .................................................................................................11 2.2 Method ........................................................................................................................12 2.2.1 Trench Jetting .................................................................................................13 2.2.2 Trench Ploughing ...........................................................................................14 2.2.3 Trench Cutting ................................................................................................15 2.3 Armoring ....................................................................................................................16 3. ENVIRONMENTAL REVIEW DETAILS ........................................................................18 3.1 Ecological Resources and Wildlife ............................................................................18 3.2 Fisheries ......................................................................................................................19 3.3 Protected Species ........................................................................................................20 3.4 Water Resources .........................................................................................................22 3.5 Air Quality ..................................................................................................................23 3.6 Cultural Resources .....................................................................................................23 3.7 Geology and Soil Resources .......................................................................................24 3.8 Environmental Justice ................................................................................................25 3.9 Human Health and Safety ...........................................................................................25 3.10 Noise ...........................................................................................................................26 3.11 Airspace ......................................................................................................................26 3.12 Visual Resources ........................................................................................................27 4. REFERENCES ....................................................................................................................28 Supplementary Information iii December 2024 LIST OF TABLES Table 1: HVAC Cable Critical Length Parameters at 115 kV Table 2: HVAC Cable Technical Parameters Table 3: HVDC Cable Technical Parameters Table 4: Similar Relevant HVDC VSC Projects Table 5: Hitachi Light Technology VSC Converter Station Sizing LIST OF GRAPHICS Graphic 1: Typical HVAC Three-Phase Cable Arrangement Graphic 2: Typical Shunt Reactor Graphic 3: Typical HVAC Cable Sealing End Arrangement Graphic 4: Typical HVDC Monopole Cable Arrangement Graphic 5: Siemens HVDC Plus VSC Converter Station Layout Graphic 6: Valhall Project VSC Converter Station Layout (Norway) Graphic 7: Cable Laying Vessel Graphic 8: ROV Jet Trencher Diagram Graphic 9: Typical Tracked ROV Jetting Machine Graphic 10: Trench Ploughing Diagram Graphic 11: Typical Subsea Cable Plough Graphic 12: Trench Cutting Diagram Graphic 13: OTTER Subsea Tracked Cable Trencher Supplementary Information 1 December 2024 1. DETAILED EVALUATION OF HVAC AND HVDC 1.1 Evaluation of HVAC To evaluate whether a high voltage alternating current (HVAC) cable would be viable, the following high level technical parameters were considered: • 70 megawatt (MW) energy transfer capacity • 390 ampere (A) amperage requirement • 115 kilovolt (kV) voltage level • 3 cables • 107 kilometers (km) (66 miles) subsea, 4 km (2.5 miles) landfall connection via horizontal directional drilling (HDD) Graphic 1 shows a typical arrangement of a three-phase HVAC cable. Graphic 1: Typical HVAC Three-Phase Cable Arrangement Source: European Subsea Cable Association 1.1.1 Critical Length In an alternating current (AC) solution, as the cable length increases, the current delivered to the load decreases because of an increasing charging current. The length at which the charging current becomes equal to the supply current is defined as the critical length and it is at this point the charging current accounts for all heat losses in the cable. Using a commercially available cable— a cross-linked polyethylene (XLPE), copper-conductored submarine cable by ABB Group—the critical length was calculated as shown in Table 1, assuming that the same cable type would be used along the entire route. Supplementary Information 2 December 2024 Table 1: HVAC Cable Critical Length Parameters at 115 kV Maximum Length (km) Size (mm2) Cable Capacitance (µF/km) Maximum Current Carrying Capacity (A) 111.3 185 0.14 420 91.65 300 0.17 530 77.9 400 0.2 590 55.6 1,000 0.28 825 Note: No de-rating applied based on method of installation. The installation method will have an impact on the current carrying capability of the cable, but not on the cable parameters. A: amperes µF/km: microfarads per kilometer mm2: square millimeters As shown in Table 1, the HVAC cable size of 185 square millimeters (mm2) (0.6 feet) meets the distance from Augustine to Anchor Point. However, the capacitance of the cable has a major impact on the length of cable possible at HVAC. For other manufacturers, the range for cable capacitance at 115 kV is between 0.13 and 0.16 microfarads per kilogram (µF/km). Using a cable rated at the edge of its range means that some manufacturers might not be able to supply the required cable. Evaluation of another voltage level was not considered because the next standard voltage level used in Anchor Point is 69 kV, which would not work for the HVAC solution. 1.1.2 Reactor Compensation Given that the distance is possible with an HVAC cable, reactor compensation was evaluated to ensure stable voltage levels and improve efficiency. The compensation requirement was calculated to evaluate both the ability to cope with voltage dips for no-load and compensation of the charging current for full-load conditions. Shunt reactors would be used along the route to compensate for the cable capacitive reactance. In this preliminary power study, a simple formula was used to provide a basic indication for cable compensation to summarize the reactive power requirements of an underground cable. For the 185 mm2 copper-conductored cable at 110 km, the compensation required is 76.7 megavolt-ampere reactive (MVAr). Shunt inductive reactors could be placed at regular intervals along the cable, but that would prove costly given the lack of available infrastructure (e.g., platforms) upon which to place the reactors. An image of a typical shunt reactor is shown in Graphic 2. To accommodate reactive compensation across Cook Inlet, the most economical option would be to locate a 40 MVAr shunt reactor at each end of the cable. The recommended arrangements are shown in Graphics 3 and 4. At the shunt reactor compound, additional equipment will be needed, including a relay/control room, an uninterrupted power supply battery for the relays and supervisory control and data acquisition (SCADA), an auxiliary transformer to provide power to the shunt reactor and relay/control room, and power supply. At the Anchor Point end, the power supply would come from the existing distribution grid. At the Augustine Island end, it would likely be best to have a standby generator. Supplementary Information 3 December 2024 During future design development, a power system study should consider whether additional variable reactive compensation would be required at Anchor Point for generation. Graphic 2: Typical Shunt Reactor Graphic 3: Augustine Island End Shunt Reactor Preferred Arrangement Minimum Arrangement Notes: 1. Disconnectors (isolators) and earth (grounding) switches are not shown. 2. Current and voltage transformers are not shown. Supplementary Information 4 December 2024 Graphic 4: Anchor Point End Shunt Reactor Preferred Arrangement Minimum Arrangement Notes: 1. Disconnectors (isolators) and earth (grounding) switches are not shown. 2. Current and voltage transformers are not shown. 3. Preliminary reactor size is 40 MVAr. 4. Voltage level assumed to be 115 kV. 5. There is a possible need for some variable reactive compensation required at the Anchor Point end for the generation (to be confirmed via power system studies). 1.1.3 Cable Landfall As the cable approaches landfall, there will be a requirement for the cable to be buried through the seashore and daylight at a cable sealing end compound. The seashore at Anchor Point is relatively shallow so the cable will begin HDD around 100 meters (m) to 150 m from the mean sea level on the coast. The burial will extend at least 250 m (820 feet) from shore to ensure that the cable will not be affected by erosion of the alluvium coast and will meet the coastal zone construction requirements. At Augustine Island, it may be possible to install the cable without using an HDD at landfall. However, this depends on the exact landing point, which remains uncertain. Therefore, it is considered worst case within this study to also use HDD at the Augustine Island landfall. For this study, the estimated depth for HDD cable installation is 5 to 10 m (16 to 33 feet). When an HVAC cable is buried, the surrounding soil acts as an insulator, which prevents heat dissipation and requires a de-rating factor to be applied. A typical de-rating factor applied for HDD is 0.85 to prevent overheating. The rating of 420 A for the 185 mm2 cable will be derated to a maximum capacity of 357 A, which is insufficient for the project. A typical practice to accommodate this de-rating is to increase the cable diameter near landfall, requiring a subsea joint. Based on the parameters shown in Table 1, the next conductor size is 300 mm2, with an approximate capacitance of 0.17 µF/km. Assuming the length of the larger diameter cable at each end is 1,000 m, the overall capacitance of the cable will change from 0.14 µF/km to approximately 0.15 µF/km. Using the modified parameters to accommodate the increase in cable size for landfall, the critical length of the cable decreases to 104 km (65 miles), which is insufficient for the project. Table 2 summarizes the calculations with landfall. Supplementary Information 5 December 2024 Table 2: HVAC Cable Technical Parameters Technical Parameter Value Notes AC nominal voltage 115 kV Based on Anchor Point system Base power ~78 MVA Includes real power and reactive power AC cable current rating required ~390 A Before derating AC cable conductor size (subsea) 185 mm² copper (fully insulated) All three cores bundled together Applied installation derating (subsea) 1.0 Assumed that the cable will be buried in ideal seabed conditions with a seabed thermal resistivity of 1 Kelvin meters per watt (k.m/W) AC cable conductor size (landfall) 300 mm² copper (fully insulated) All three cores bundled together Applied installation derating (landfall) 0.85 Applied at the landing point for the cables with an assumed burial depth of 10 m (33 feet) AC cable current rating required ~459 A After derating for the landfall Estimated electrical losses ~7% to 10% Ohmic losses in conductor. Induced losses in conductor. Induced losses in sheath. Induced losses in armoring. Charging current due to length. 1.1.4 Cable Sealing End Compound For the transitioning of the subsea/underground cable to an overhead line, there will be a need for a cable sealing end compound to be constructed. In a typical arrangement, the tower is located close to the waterfront. The cable sealing ends are located on the tower along with support insulators and also surge arresters on the line side as shown in Graphic 5. Graphic 5: Typical HVAC Cable Sealing End Arrangement Supplementary Information 6 December 2024 1.2 Evaluation of HVDC To evaluate whether a high voltage direct current (HVDC) cable would be viable, the following high level technical parameters were considered: • 100 MW energy transfer capacity • ±80 kV voltage level • Voltage source converter (VSC) technology • VSC converter station using a symmetric monopole design • 2 cables • 105 km (65 miles) subsea, 6 km (3.7 miles) landfall connection via HDD Graphic 6 shows a typical arrangement of a HVDC monopole cable arrangement with a metallic return. Graphic 6: Typical HVDC Monopole Cable Arrangement Source: Trans Bay Cable 1.2.1 Technical Parameters The provisional sizing of the HVDC cables is a 300 mm2 copper conductor XLPE direct current (DC) submarine cable, assuming that both cables will be touching along the whole of the cable route. This will provide an approximate rating of 662 A or 106 MW at 80 kV, assuming that the same cable type is used along the entire route. With DC cabling, no reactive compensation is needed. Supplementary Information 7 December 2024 Table 3: HVDC Cable Technical Parameters Technical Parameter Value DC voltage (pole to ground) 80 kV Base power ~100 MVA DC current ~625 A DC main pole conductor size 300 mm² copper (fully insulated) DC return conductor size 300 mm² copper (insulated) Estimated electrical losses (Ohmic losses in conductor, Losses associated with the conversion from DC to AC and vice versa) ~5% to 6% 1.2.2 Current Source or Voltage Source Conversion For the HVDC converter station, either current source converters (CSC) or VSC technology can be used, corresponding to two HVDC transmission technologies that are commercially available. CSC are also known as line commutated compensation, using thyristors as the key power electronic device. VSC uses insulated date bipolar transistor (IGBT)/injection-enhanced gate transistor (IEGT) as the key power electronic device. There are some functions that for certain networks are seen as a benefit but for other networks can be seen as a weakness. Therefore, the HVDC technology should be selected to best suit the needs for the network but not cause additional problems. The traditional CSC technology, which is suitable for non-weak networks, has been installed for applications up to 5 gigawatts (GW) while the newer VSC technology is available presently for 1 to 1.2 GW. VSC converter technology was first introduced to the market by ABB (now Hitachi) using pulse width modulated (PWM) technology. This had advantages over CSC technology in that it did not present a reactive power demand to the network and could effectively transmit real power and reactive power in both directions. However, the converter losses of Hitachi’s VSC technology were larger than CSC technology. Hitachi was followed into the market by Siemens, who offered a multi-layer VSC technology that has reduced losses compared with Hitachi’s original PWM technology. GE Vernova now has a VSC product on the market that has adopted the lower loss multi-layer technology. The transmission network within the Anchor Point area is considered to be “weak” (e.g., due to the lack of interconnections with other parts of the main transmission grid). Because of the need to control the active and reactive power, VSC technology is the only viable DC option for this project. In addition, VSC technology will be able to provide the mainland grid with black start capability in the event of a power failure of the Alaskan transmission network. Several projects in both North America and Europe use HVDC VSC technology that are similar in size. Table 4 provides a reference list of relevant projects for comparison. Supplementary Information 8 December 2024 Table 4: Similar Relevant HVDC VSC Projects Location Name Year Built Cable Length (km) Size (MW) Voltage (kV DC) North America: USA Cross Sound Cable 2002 40 330 150 North America: USA Trans Bay Cable 2010 85 400 200 North America: Canada Maritime Link 2017 360 500 200 Europe: Norway Valhall 2011 292 78 150 Europe: Norway Troll A 2004 70 80 60 Europe: Norway Troll A 3 and 4 2015 70 100 66 Europe: Norway Johan Sverdrup Phase 2 2022 200 200 80 Europe: Finland ÅL Link 2015 80 100 80 1.2.3 DC to AC Conversion Station Typically, an HVDC cable will extend to the converter station, which is the approach taken for this project. In some instances where ground conditions are considered challenging, an end sealing compound can be used to convert to overhead before the converter station, but this was not considered necessary at Anchor Point. HVDC VSC converter stations generally come in module form, depending on the manufacturer. Table 5 shows the module sizing of the Hitachi HVDC Light technology as an example. For this project, the M1 size would be needed. Graphic 7 shows a typical layout for an HVDC VSC converter station, as provided by Siemens HVDC Plus. Graphic 8 shows the layout for the onshore HVDC VSC converter station for the 78 MW Valhall project in Norway. A simplified diagram is provided in Graphic 9. Table 5: Hitachi Light Technology VSC Converter Station Sizing Symmetric Base Modules Units Size M1 Size M2 Size M3 Size M3x DC Voltage (pole to ground) kVDC 80 80 80 80 Base Power MVA 106 209 319 430 AC Current AC 580 1,140 1,740 2,610 Supplementary Information 9 December 2024 Graphic 7: Siemens HVDC Plus VSC Converter Station Layout Graphic 8: Valhall Project VSC Converter Station Layout (Norway) Plan View Side View Supplementary Information 10 December 2024 Graphic 9: Valhall Project VSC Converter Station Layout (Norway) Supplementary Information 11 December 2024 2. CABLE INSTALLATION METHODS 2.1 Cable Laying Vessels For long subsea cables, more sophisticated cable lay vessels are required (Graphic 10). Required cable lengths can now be around 100 km, and larger purpose-built cable lay vessels with integrated carousels are required to carry these much longer cable lengths safely. Graphic 10: Cable Laying Vessel The new generation CLVs are multi-purpose: they are able to lay, trench and survey the cable from an integrated system; with a typical dead weight of 9,000 tonnes (20,000 pounds), vessel length of 120 m and 28 m beam, these vessels are able to lay heavy and long cables. Equipped with a DP2 positioning systems, they can position these cables accurately on the seabed. However, operations with these larger vessels may be restricted by shallow water. When selecting a CLV, factors to be considered include the following: • Cargo capacities • Maneuverability properties • Deck space for cable handling equipment • Good sea-keeping properties i.e. stability of the vessel in wind and waves • Bollard pull for cable plough • Common issues/costs to consider re: cable installation vessel on an offshore wind project • Availability Supplementary Information 12 December 2024 • Weather window • Speed of installation • Crew quarter size (accommodation for about 60 people) • Barge management system • Anchor handlers • Anchor patterns: innovative to maneuver around foundations to keep time to a minimum • Transfer vessels and planning • Insurance • Contractor interface (foundation, j-tube design –vessel coordination) • Communications (v-sat or like transmit large amounts of data on a daily basis) • Overall project logistics • Turntable Typical characteristics of CLVs include the following: • Draught ranges between 2 m and 10 m • Cargo capacities range from 500 tonnes to 10,500 tonnes • Deck space varies from 500 square meters (m2) to 3000m2 • Service speed ranges of 7.8 to 12.5 knots • On board accommodation capacities varies between 50 and 100 beds The overall concept and holistic view in the selection of vessels, including how vessels work alongside one another, how they operate and dependencies and interdependencies within an emergency situation, is essential. Alongside the vessels themselves is the wide range of project equipment that is required. 2.2 Method Both ploughing and trench-cutting require the trench to be pre-formed and held open ahead of the cable, which therefore has to be fed into the machine between the cutters or ploughshare and the cable depressor. This is more complex than for a jetting machine that simply fluidizes the soil around the cable. Jetting is therefore seen as posing the least risk to a pre-laid cable, although it may also be the least effective at burying in certain soil types. With the complexities of subsea cable-handling, trench-cutting may be better suited to a simultaneous lay-and-trench operation. While this has potential to reduce offshore timing, and certainly minimizes the risk of cable movement between lay and burial, the combined operation Supplementary Information 13 December 2024 will be more complex than simple cable laying, with the required weather-windows being more restrictive. 2.2.1 Trench Jetting Jetting machines operate by pumping high-pressure water to fluidize or displace the soil. For electrical cables that are more flexible than pipelines and heavier than the surrounding soil, it is sufficient to form a slot of fluidized soil into which the cable is lowered, all within the footprint of the trenching machine itself. Trench jetting may have season restrictions applied based on the occurrence of sensitive marine life during larval and juvenile life stages. Jetting machines are generally tracked self-propelled crawlers with a power cable required from the mothership. Being remotely operated, they may sometimes be referred to as ROVs; they should not be confused with neutrally buoyant ROVs that operate throughout the water-column, which can also be used for localized jetting operations that do not justify mobilization of tracked trenching machinery. Jetting is particularly effective in sandy soils, less so in cohesive materials such as firm or stiff clays. Larger soil particles require more jetting power, so the method may be less successful in gravelly sands; indeed, in such conditions, there may be a tendency for the gravel particles to sink during the fluidization process, displacing the sand upwards. This aspect of the potential backfill material needs to be understood on a case-by-case basis. Graphics 11 and 12 show a typical ROV jet trencher and the principle of the operation. Graphic 11: ROV Jet Trencher Diagram Source: DNV Supplementary Information 14 December 2024 Graphic 12: Typical Tracked ROV Jetting Machine Source: Global Marine 2.2.2 Trench Ploughing Ploughs are passive machines towed behind the mothership, the towing distance being a function of water depth. This makes them less maneuverable than self-propelled machines, particularly in confined areas. This method is generally effective in most soil types (granular and cohesive), although variable conditions such as stiff clays with embedded cobbles can be problematic. For electrical cables, the plough may be equipped with a cable depressor, so that the removed soil can be backfilled within the plough’s footprint. Graphics 13 and 14 show a typical ploughing machine and the principle of the operation. Supplementary Information 15 December 2024 Graphic 13: Trench Ploughing Diagram Source: DNV Graphic 14: Typical Subsea Cable Plough 2.2.3 Trench Cutting Trench cutting is performed using a similar self-propelled vehicle to that used for Jetting, except that it is equipped with a cutter chain that creates a vertical slot into which the cable is lowered. The technique is particularly suited to firm or stiff clays where jetting would be ineffective, and where the soil can maintain a vertical-sided profile. However, the rotating cutters present the greatest risk to the cable of the three trenching methods. Graphic 15 shows a typical chain cutter and the principle of the operation. Supplementary Information 16 December 2024 Graphic 15: Trench Cutting Diagram Source: DNV Graphic 15: OTTER Subsea Tracked Cable Trencher 2.3 Armoring Since the majority of cable damage is caused by human activities, such activities must be kept away from the installed cables. The cable is installed, usually 1 to several meters beneath the seabed, to protect against fishing and anchoring activities (with a minimum buried depth of 1 m, per industry standards). A burial depth of 1-2 m seems sufficient to protect against fishing activities. To protect effectively against anchoring activities (a few meters burial depth is usually Supplementary Information 17 December 2024 not enough and is related to the size of vessels crossing the cable route), additional protection may be required. Another reason for sheltering the cables is to protect against sabotage. Finally, when the cable cannot be buried in the seabed (long rocky stretches, crossing other cables or pipes, too thin a sand layer, area where large vessels are not allowed) additional protection is needed. The common methods include the following: • Rock placement • Articulated pipe • Concrete mattress Further cable installation protection can be provided, such as warning signs onshore, a constructive dialog with fishermen and their organizations about the presence of the cable circuit. Another way to protect the cable is to monitor ship movement close to the route. In case a ship has dropped an anchor in the vicinity of the cable circuit, divers may investigate the risk of retrieving the anchor and may occasionally even cut the anchor free to avoid cable damage. These are typical considerations that may require to be taken into account when designing the cable system. Supplementary Information 18 December 2024 3. ENVIRONMENTAL REVIEW DETAILS 3.1 Ecological Resources and Wildlife Biological resources include native and non-native plants and animals and the habitats in which they occur. Habitat is defined as the natural environment of an organism, the type of place in which it is natural for it to live and grow. Augustine Island is a part of the Alaska Peninsula ecoregion (Alaska Department of Fish and Game [ADFG] 2015). Vegetation communities on lower portions of the island are predominantly shrub (primarily alder, Alnus species [sp.]). Patches of deciduous forest (black cottonwood, Populus balsamifera) and conifer Sitka spruce (Picea sitchensis). Dwarf shrub communities (alpine bearberry [Arctostaphylos uva-ursi], crowberry [Empetrum nigrans], bog blueberry [Vaccinium uliginosum], and lingonberry [Vaccinium vitis-idaea]) are also present in small portions of the permit area. These vegetation communities are typical of the region. The coastline within the permit area is steep bluffs and gravel or sand beach with abundant boulders. Multiple biotic communities found in Augustine Island tidal zones (DNR 2022), but in the permit area, biota most likely to be present include rockweed (Fucus distichus), blue mussel (Mytilus trossulu), and barnacle (Balanus glandula or Semibalanus balanoides) that may attach to boulder substrates. Lower intertidal communities may include soft brown kelps (Saccharina latissimi) and others, Alaria (Alaria marginata), and red algae (Odonthalia sp.). Although eelgrass (Zostera marina) has been identified on Augustine Island, it was not associated with subtidal waters off of the permit area (DNR 2022). Kittlitz’s murrelet (Brachyramphus brevirostris) is a small seabird that nests on steep slopes with no or sparse, low vegetative cover. Nesting habitat has primarily been associated with glacial terminal zones but habitat suitability modeling indicates potential nesting habitat may be present within the Permit Area (Felis et al. 2016). Kittlitz’s murrelet is a candidate for listing under the Endangered Species Act (ESA) (ADFG 2024). At Anchor Point, habitats include a willow and alder shrub and woodland, black spruce (Picea mariana) forest, and low scrub bog. Anchor River and several tributaries flow west into Cook Inlet at Anchor Point, and riparian habitats are present along waterways. These habitats provide breeding or migration stopover habitat for many species of songbirds, shorebirds, and waterfowl (USFWS 2024a, ADFG 2015). A variety of mammals may also utilize these areas, including moose (Alces alces), black bear (Ursus americanus), beaver (Castor canadensis), and muskrat (Ondatra zibethicus) (ADFG 2015). Consideration needs to be taken to minimize potential impacts to terrestrial and marine ecosystems and wildlife that may be present: • Many species of birds have the potential to nest within the Permit Area on Augustine Island including species like Kittlitz’s murrelet that nest on the ground and can be difficult to detect. Additionally, several species of birds may nest within the proposed transmission line alignments at Anchor Point, including sensitive species such as Aleutian tern (Onychoprion aleuticus), olive-sided flycatcher (Contopus cooperi), Supplementary Information 19 December 2024 lesser yellowlegs (Tringa flavipes), and short-billed dowitcher (Limnodromus griseus). Actions may include performing bird nest clearance surveys prior to vegetation clearing, excavations, and other ground-disturbing activities. When possible, planning to perform vegetation clearing activities early or late in the season may limit potential impacts on nesting birds. 3.2 Fisheries The primary use of fish and wildlife populations on and around Augustine Island are commercial and sport fisheries in marine waters around Augustine Island for salmon, halibut, and groundfish. These commercial and sport fisheries target fishes that occur across state, federal, and international waters that are managed for sustainable harvest ADFG, North Pacific Fisheries Management Council, National Marine Fisheries Service, and International Pacific Halibut Commission. Essential Fish Habitat (EFH) for salmon, groundfish, and Pacific scallops exists in lower Cook Inlet (DNR 2022). EFH is habitat necessary for spawning, breeding, feeding or growth to maturity for fishes managed under federal fishery management plans (FMPs). EFH for one or more life stages for most fishes covered under the Gulf of Alaska Groundfish FMP occur in nearshore subtidal and intertidal waters, or shallow inner shelf waters 1 to less than 164 feet (1 to less than 50 m) deep around Augustine Island (DNR 2022). Bottom trawl survey abundance estimates for commercially and recreationally important groundfish in the Kamishak Bay area south and east of Augustine Island from 1998 to 2012 identified the presence of several species, including Pacific halibut (Hippoglossus stenolepis) Pacific cod (Gadus macrocephalus), walleye pollock (Gadus chalcogramma), sablefish (Anoplopoma fimbria), and rockfish (Sebastes sp.) (DNR 2022). No freshwater stream habitats for anadromous fish have so far been identified on Augustine Island in the ADFG anadromous waters catalog (ADFG 2024), although salmon may use stream, pond, and tidal lagoon habitats on Augustine Island for spawning and rearing. All five Pacific salmon occur in and are harvested from the marine waters of Kamishak Bay and lower Cook Inlet. Pacific herring spawn along northwestern shorelines and razor clam (Siliqua patula) beds occur along the southwestern shorelines. ADFG lists Anchor River and its tributaries in Anchor Point as anadromous waters providing habitat for all five Pacific salmon species, Dolly Varden (Salvelinus malma), and steelhead (Oncorhynchus mykiss). Construction activities for the transmission line and associated infrastructure may impact anadromous fish habitat, including spawning habitat, at Anchor Point. Intertidal and nearshore habitats around the island support eelgrass communities that are used for spawning by Pacific herring, but none have been identified in waters off of the permit area. Consideration needs to be given to the following: • Although no streams on Augustine Island are listed in the ADFG anadromous catalog, this may be because the island has not yet been surveyed. Actions may include an evaluation of habitat suitability of streams within the Permit Area for salmon. Supplementary Information 20 December 2024 • Multiple species of anadromous fish have been identified in the Anchor River in the Anchor Point area. An ADFG Fish Habitat Permit may be required if transmission line construction will affect waterways at Anchor Point. • Razor clam beds have been identified in nearshore habitats of the western portion of the Permit Area. Actions may include detailed mapping of potential razor clam habitat and planning to minimize potential impacts to those areas. • Dredging and cable installation can result in destruction of organisms and habitats that can lead to long-term or permanent damage depending on the extent and type of habitat disturbed and mitigation measures used (DNR 2022; 74 Federal Register 51988). Planning may include quantification of potential impacts to commercial and recreational groundfish and salmon fisheries. 3.3 Protected Species Protected species include those that are federally listed, or proposed for listing, as threatened or endangered under the ESA by the United States Fish and Wildlife Service (USFWS). Management and protection of listed species is given priority in natural resource management. In cases where threatened and endangered species management, in accordance with the appropriate guidance, would conflict with other mission activities, consultation with the USFWS will be initiated to avoid jeopardizing any listed species or its critical habitat. Portions of marine waters near Augustine Island are designated as critical habitat under the ESA for endangered Cook Inlet beluga whales (Delphinapterus leucas) (76 Federal Register 20180) and threatened southwest distinct population segment of northern sea otters (Enhydra lutris kenyoni) (74 Code of Federal Regulations [CFR] 51988). Although not designated as critical habitat, some threatened Steller’s eiders (Polysticta stelleri) (62 CFR 31748) may aggregate in lower Cook Inlet in late summer through early spring for molting and over winter (DNR 2022). The short-tailed albatross (Phoebastria albatrus) (65 CFR 46643) is also listed as a federally endangered and Special Status species by the ADF&G with the potential of being present at Augustine Island (USFWS 2024a). However, adverse effects from the use of the nearshore marine environment around the AWS FUDS is not expected. Short-tailed albatrosses presently breed on islands in the western Pacific, Nonbreeding birds do however forage in the open ocean, consuming food items such as squid, shrimp, and small fish such as flying fish (USFWS 2008). It is possible that the short-tailed albatross may visit the marine waters near the Permit Area; however, interaction would be limited and would not impact breeding. There are hundreds of bird species protected under the Migratory Bird Treaty Act (MBTA) (16 United States Code [USC] 703-712) that are known to occur in Alaska, either seasonally or year- round, and the scenarios must comply with the MBTA. No native terrestrial mammals are found on Augustine Island. Additionally, there are no records of introduced brown rats or other invasive animal or plant species. Bald eagles (Haliaeetus leucocephalus), which are protected under the federal Bald and Golden Eagle Protection Act (16 USC 668-668d), are widely distributed along waterways and are likely present in the Permit Area and at Anchor Point (DNR 2022). Bald eagles are usually found near Supplementary Information 21 December 2024 water in coastal areas and along lake and river shorelines. The breeding season in Alaska begins with courtship and nest building in February and ends when the young fledge by late August into early September. Nests are large structures constructed in mature old-growth trees or snags, and on cliffs or rock outcrops. In coastal Alaska breeding eagles may remain near their nests year-round (DNR 2022). The Marine Mammal Protection Act (MMPA) (16 USC 136-1423h) prohibits harassment of marine mammal and activities that have the potential to kill, injure, or disrupt behavioral patterns of marine mammals. The MMPA extends protections similar to those given to ESA species. At Augustine Island, harbor seals (Phoca vitulina) are present in coastal waters off Augustine Island and multiple haulouts for 50 or more harbor seals have been identified along the shoreline of the southern coast of island, including the Permit Area. Undersea cable laying activities will cross waters in lower Cook Inlet that may be seasonally inhabited by cetaceans (whales and porpoises) including killer whale (Orcinus orca), humpback whale (Megaptera novaeangliae), fin whale (Balaenoptera physalus), minke whale (Balaenoptera acutorostrata), and Pacific white-sided dolphin (Lagenorhynchus obliquidens) (National Oceanic and Atmospheric Administration [NOAA] 2024a). A Marine Mammal Protection Plan and monitoring would be required during construction. The marine mammal monitor would have the authority to stop construction, while marine mammals are in the vicinity of the project. Consideration needs to be given to the following: • Waters offshore of the Permit Area are designated critical habitat for the distinct population segment of the northern sea otter. Routing for a subsea cable to the Kenai Peninsula from Augustine Island would likely cross through northern sea otter critical habitat that surrounds the island (74 Federal Register 51988). • Undersea cable placement will cross habitat for Cook Inlet beluga whale (DNR 2022). Determine whether this activity laying has the potential to generate sound of a frequency and volume that may disturb marine life, particularly cetaceans such as the endangered Cook Inlet beluga that is likely present throughout the area. Develop plans to mitigate potential sound impacts to terrestrial and aquatic biota. The National Oceanographic and Atmospheric Administration (NOAA) recommends maintaining a 100-yard distance from whales (NOAA 2024b). • Potential for disturbing established harbor seal rookeries and haul-outs within or near the permit area on Augustine Island. Evaluating alternative landing points for boat access and controlling boat traffic as to minimize the number of trips required during sensitive periods. NOAA recommends maintaining a 100-yard distance from harbor seal haul-outs (NOAA 2024b). • Records do not indicate that Norway (brown) rats or other invasive non-native species have been identified on Augustine Island. Project planning should include biosecurity protocols development and implementation for all phases of onsite planning, construction, and long-term operation of the geothermal plant to prevent accidental introduction of non-native plant and animal species. Supplementary Information 22 December 2024 • Bald Eagles (Haliaeetus leucocephalus) have been recorded as breeding on Augustine Island and at Anchor Point. Actions may include nest monitoring before and during construction. Additionally, overhead transmission lines at Anchor Point should be designed so as to minimize the risk to bald eagles from collision, entanglement, or electrocution. • Many species of birds protected under MBTA have the potential to nest within the Permit Area on Augustine Island and at Anchor Point. Actions may include performing bird nest clearance surveys prior to vegetation clearing, excavations, and other ground- disturbing activities. When possible, planning to perform vegetation clearing activities early or late in the season may limit potential impacts to nesting birds. 3.4 Water Resources The water resources described in this section include surface water features (e.g., lakes, streams, rivers), groundwater, floodplains, and stormwater specific to the Augustine Island permit area. Wetlands are defined, per 33 CFR Part 328.3(b) of the CWA, as “those areas that are inundated or saturated by surface or groundwater at a frequency and duration to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions.” Section 404 of the CWA regulates the discharge of dredge or fill material into waters of the United States, and United States Army Corps of Engineers (USACE) holds the primary federal authority for regulation of these discharges. A search of the National Wetlands Inventory indicates that there are no wetlands or other jurisdictional waters identified within the Augustine Island permit area (USFWS 2024b). It should be noted that the National Wetland Inventory mapping is based on the interpretation of infrared imagery collected in 1978. Given the dynamic nature of Augustine Island, the data included NWI may not reflect current conditions within the permit area. Several streams are present with the Permit Area. All are perennial streams with unconsolidated bottoms. Headwaters for streams are on the middle slopes of Augustine volcano and each flow into Cook Inlet. Several waterways, including the Anchor River and its tributaries, overlap the proposed transmission line alignment. Additionally, freshwater forest and shrub wetlands and emergent wetlands are found along both alignment options (USFWS 2024b). Consideration needs to be given to the following things: • Assessment of the wetlands and water of the United States (WOTUS) resources at the proposed construction sites would be required • Obtaining appropriate USACE coordination and permitting for construction • Designing appropriate systems for the conveyance of stormwater and treatment of wastewater generated during construction of the electrical interconnect to protect surface water and groundwater resources that may be present. • Studies of groundwater contamination depths may be needed to identify potential aquifer impacts in areas where HDD will occur. Supplementary Information 23 December 2024 3.5 Air Quality As defined by Alaska Statute, air pollution is the presence in the outdoor atmosphere of one or more contaminants (e.g., dust, fumes, gas, mist, odor, smoke, or vapor) in quantities and of characteristics and duration such as to be injurious to human, plant, or animal life or to property, or to interfere unreasonably with the comfortable enjoyment of life and property (Alaska Statutes 46.04.900(2)). Both the Environmental Protection Agency (EPA) and Alaska Department of Environmental Conservation (ADEC) regulate air quality in Alaska. Six criteria pollutants are established with National Ambient Air Quality Standards (NAAQS; 40 CFR Part 50) under EPA: • Particulate matter (PM): smaller than 10 microns in diameter or 2.5 microns in diameter • Sulfur dioxide (SO2) • Carbon monoxide (CO) • Nitrogen dioxide (NO2) • Ozone (O3) • Lead ADEC accepts the EPA standards with the addition of ammonia (NH3). ADEC also implements a program for permitting the construction and operation of new or modified stationary sources of air emissions that emit regulated pollutants. Construction of the electrical interconnect will generate some amount of air pollutants. Short-term increases in air pollution in the region may be caused by diesel exhaust from construction and drilling equipment and dust from road and staging area construction. However, over the life of the project, the amount of air pollutants generated by the geothermal plant will be minimal compared to fossil fuel-powered plants. Consideration needs to be given to the following activities: • Short-term emissions from dust and construction equipment during construction of the facility. Minor source permits may be required. 3.6 Cultural Resources Cultural and historical resources commonly refer to physical material items associated with past human activities. Under the National Historic Preservation Act (NHPA) (16 USC 470), as amended, only historic properties warrant consideration of impacts from a proposed action and any associated proposed mitigation, and are defined by the NHPA as any districts, sites, buildings, structures, or objects included on or eligible for inclusion on the National Register of Historic Places (NRHP). Historic properties include traditional cultural properties and are associated with important national events or are “exceptionally significant” in another way. To be considered significant, archaeological or architectural resources must meet one or more specific NHPA criteria, which include: association with events that have made a significant contribution to the broad patterns of history; association with the lives of persons significant to our past; embody a distinctive characteristic of a type, period, construction; or that have yielded or may be likely to Supplementary Information 24 December 2024 yield information important to history or prehistory. In addition to consideration of impacts to historic properties in accordance with the NHPA, other cultural resource considerations are also taken into account in accordance with the National Environmental Policy Act (NEPA). Lower Cook Inlet has been inhabited for at least 3,500 years, and the region includes Alutiiq (Sugpiaq), Dena’ina Ełnena, and Dënéndeh homelands (Native Land Digital 2024). However, although historical subsistence hunting and gathering has occurred near Augustine Island, there are currently no records of settlements on the island aside from a remote, abandoned cabin likely used by miners during a brief stint of pumice mining on the island in the late 1940s (DNR 2022). Consideration needs to be given to the following: • Under Section 106 of the NHPA, an intensive archaeological survey of the subsea and the terrestrial transmission line may be required. This would be at the request of the USACE archeologist as well as the Alaska Native Communities. • No historic or prehistoric sites have been reported on Augustine Island (DNR 2024). Actions may include outreach to Alaska Native Communities in Lower Cook Inlet and coordination with Alutiiq (Sugpiaq), Dena’ina Ełnena, and Dënéndeh representatives and the State Historic Preservation Office (SHPO) prior to land disturbing activities. 3.7 Geology and Soil Resources Geology and soil resources include the surface and subsurface materials of the earth. Within a given physiographic province, where applicable, these resources typically are described in terms of topography, soils, geology, minerals, and paleontology. Site-specific geological resources typically consist of surface and subsurface materials and their inherent properties. Principal factors influencing the ability of geological resources to support structural development are the seismic conditions (i.e., potential for subsurface shifting, faulting, or crustal disturbance), topography, and soil stability. Geothermal fields are typically located in seismically active areas or along active faults. Earthquakes may triggered by plant operations because geothermal resource extraction affects fluid pressure in the subsurface. Geothermal operations in tectonically active regions often show increased seismicity, but not always of large magnitude (DNR 2022). Consideration needs to be given to the following things: • Geotechnical evaluations will be needed for siting of the electrical interconnect facilities and transmission routes. • Augustine Island is a seismically active area. Seismic hazard building protocols will need to be followed to minimize risk to workers from both natural and induced earthquakes. Supplementary Information 25 December 2024 3.8 Environmental Justice The definition of minority as defined by the White House Council on Environmental Quality (CEQ) guidelines is Black or African American, American Indian, and Alaska Native, Asian, Native Hawaiian and Other Pacific Islander, and multi-race that includes one of these races, and Hispanic or Latino. A minority population also exists if there is more than one minority group present and the minority percentage, as calculated by aggregating all minority persons, meets one of the above stated thresholds (CEQ 1997). Low-income populations are identified in this analysis by using the statistical poverty threshold of the United States Census Bureau (USCB), which is based on income and family size. For the purposes of this environmental justice analysis, children are defined as people 17 years of age and under. Executive Order (EO) 12898 also requires that federal agencies analyze the environmental effects, including human health, economic, and social effects, of federal actions on tribal populations. None of the communities in the ROI are associated with federally recognized tribes. Consultation with tribes is discussed in Section 5.4.12, Cultural Resources. Augustine Island is an uninhabited island. The closest communities are Nanwalek and Port Graham (2020 Census populations 247 and 162, respectively), located on the Kenai Peninsula, approximately 55 miles northeast of the permit area. No impacts to this or other communities are anticipated. Consideration needs to be given to the following: • Construction and operation of the geothermal plant may provide job opportunities for residents of communities on the Kenai Peninsula. Community outreach may include efforts to support hiring of local community residents to fill available positions. • Any unanticipated impacts from the geothermal plant may be offset by reduced overall greenhouse gas emissions will result in better air quality for communities in the Lower Cook Inlet. Community outreach may include discussion of how geothermal energy may support the long-term health and wellbeing of community members. 3.9 Human Health and Safety Human health and safety consider those facets of military activities and materials that potentially pose a risk to the health, safety, and well-being of the public, military personnel, civilian employees, and dependents. Aspects of construction and operation activities that can present risk to human health and safety include vehicle operation, occupational and construction safety hazards, and handling and management of hazardous materials and hazardous waste. Geothermal power has potential to require the handling of high-temperature water and steam that may cause health and safety impacts. Considerations should be given to the following: • Mitigation measures may include development of a plan to address potential geohazard impacts on operations to mitigate risk to facilities and personnel and coordination with the Alaska Volcano Observatory to ensure that the permittee or operator is always Supplementary Information 26 December 2024 aware of Augustine Volcano’s current activity status when personnel are on Augustine Island. 3.10 Noise Noise is defined as any sound that is undesirable because it interferes with communication, is intense enough to damage hearing, or is otherwise annoying. Noise can be intermittent or continuous, can be steady or impulsive, and can involve a number of sources and frequencies. Sound intensity is quantified using decibels (dBs), a measure of sound pressure level. Noise is generated during construction, drilling, and subsequent operation of geothermal facilities. Construction-related noise may have upper volumes ranging from 80 to 120 decibels (DNR 2022). During normal geothermal power plant operation sound may be generated by hydraulic power packs and electrical generators. Typical noise levels are 72 to 75 dBA at 20 m distance. Undersea cable laying may also generate noise that may affect marine wildlife. Consideration should be given to the following: • Loud noise may disturb breeding birds, causing them to abandon their nests or flush them and make them more vulnerable to predation. Likewise, laying undersea cable may cause noise of a frequency, volume, or duration to affect the hunting, foraging, and social behaviors of fish and cetaceans (DNR 2022, NOAA 2022). Actions may include performing nest clearance surveys and implementing sound engineering controls to limit effects on wildlife. 3.11 Airspace The airspace environment is described in terms of its principal attributes, namely controlled and uncontrolled airspace and Special Use Airspace. Controlled airspace is a generic term that encompasses the different classifications of airspace and defines dimensions within which air traffic control service is provided to flights under instrument meteorological conditions and visual meteorological conditions. Obstructions to flights, which include towers and power transmission lines, represent safety concerns for aircrews, especially those engaged in low-altitude flight training. Airfields have areas immediately surrounding runways where development actions may be restricted or prohibited altogether to eliminate potential obstructions that would affect safe approach to or departure from a runway. There are no airfields within 25 miles of Augustine Island. Access to McNeil State Game Refuge and Sanctuary is by float plane landing at McNeil River Campground, approximately 32 miles southwest. From Anchor Point, there are several communities on the Kenai Peninsula with airport. The closest commercial air facilities are in Homer (15 miles), Seldovia (25 miles) and Nanwalek (28 miles). Several private airstrips are also present in the area. Major air facilities (Ted Stevens Anchorage International Airport, Merrill Field Airport, and Joint Base Elmendorf-Richardson) are located in Anchorage, approximately 170 miles north. Supplementary Information 27 December 2024 No airspace effects are anticipated from the subsea cable, substation facilities, or electrical transmission lines. Anticipated height of the transmission lines is 80 feet, which is lower than the 200 foot minimum for Federal Aviation Administration notification. Consideration needs to be given to the following: • Actions may include determining whether there would be an effect on air traffic. 3.12 Visual Resources Visual resources are the natural and man-made features that make up the landscape of an area. Natural features include water surfaces, vegetation, and topography, and man-made features include buildings, towers, roads, and airfields. These features combine to give an area its unique characteristics and are inherent to the structure and function of that landscape. The importance of modifications to these visual resources is influenced by the assessed value it has to the viewer, public awareness of the area, and general community concern for visual resources in the area. Recreational resources consist of the activities, both indoor and outdoor, that are available to a population in a certain area, and potential impacts to this resource are evaluated by the effect of a proposed action to the facilities or natural resources that support these activities. Impacts on visual resources are considered minimal on Augustine Island because the area is uninhabited and virtually no infrastructure exists for visitation. In Anchor Point transmission infrastructure may impact visual resources for some residents and visitors, depending on final design, particularly in more populated areas of Anchor Point. Supplementary Information 28 December 2024 4. REFERENCES ADFG. 2015. 2015 Alaska Wildlife Action Plan. Alaska Department of Fish and Game. Juneau, Alaska. ADFG. 2024. “Kittlitz’s Murrelet (Brachyramphus brevirostris) Species Profile.” Alaska Department of Fish and Game. https://www.adfg.alaska.gov/index.cfm?adfg=kittlitzmurrelet.main. CEQ. 1997. Environmental Justice Guidance Under the National Environmental Policy Act. Washington, D.C. White House Council on Environmental Quality. DNR. 2022. South Augustine Island Noncompetitive Geothermal Prospecting Permit Preliminary Written Finding of the Director. Alaska Department of Natural Resources. April 28. DNR. 2024. 2024 Augustine Island Noncompetitive Geothermal Prospecting Permit Final Written Finding of the Director. Division of Oil and Gas. January 10. Felis, J.J., M.L. Kissling, R.S.A. Kaler, L.A. Kenney, and M.J. Lawonn. 2016. “Identifying Kittlitz’s Murrelet Nesting Habitat in North America at the Landscape Scale.” Journal of Fish and Wildlife Management 7(2): 323–33. https://doi.org/10.3996/112015-JFWM-116. Native Land Digital. 2024. Native Land Digital. https://native-land.ca/. September. NOAA. 2022. “A Whale’s World of Sound.” NOAA Fisheries. National Oceanographic and Atmospheric Administration. February 18. https://www.fisheries.noaa.gov/feature- story/whales-world-sound. NOAA. 2024a. “Species Directory.” NOAA Fisheries. National Oceanographic and Atmospheric Administration. https://www.fisheries.noaa.gov/species-directory. NOAA. 2024b. “Marine Life Viewing Guidelines.” NOAA Fisheries. National Oceanographic and Atmospheric Administration. https://www.fisheries.noaa.gov/topic/marine-life-viewing- guidelines. USFWS. 2008. Short-tailed Albatross (Phoebastria albatrus) Recovery Plan. Region 7 United States Fish and Wildlife Service. Anchorage, Alaska. September. USFWS. 2024a. Information for Planning and Consultation. https://ipac.ecosphere.fws.gov/. USFWS. 2024b. “Wetlands Mapper.” National Wetlands Inventory. https://www.fws.gov/program/national-wetlands-inventory/wetlands-mapper.