631 Yerrick Creek Hydro



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631 Yerrick Creek Hydro


Proposer: Alaska Power Company (APC) a subsidiary of Alaska Power and Telephone Company

Benefit/Cost Ratio: Applicant self-reported: 4.5 Applicant calculated: 2.62

AEA calculated: 2.10

Project Description:

Yerrick Creek is located ~ 20 miles west of Tok. The project would generate energy for the interconnected communities of Tetlin, Tanacross, Dot Lake and Tok. The project infrastructure requirements include: an access road, small diversion structure, 15,000 feet of penstock, powerhouse with a single generator, tailrace, substation and upgrade to an existing transmission line. Annual generation is estimated at around 4,900 mwh/year which could potentially replace 40 percent of energy demand now met with diesel generation. Yerrick Creek hydro would only be online May to November.



Contribution to Lower the Cost of Energy:

All of the communities served by this project are PCE eligible so cost savings would be enjoyed by the State through reduced PCE subsidies and to local energy users who are not PCE eligible.



Assumptions Modified:

AEA fuel pricing model used on both applicant and AEA calculations.

Applicant analysis:


AEA analysis

  • O&M calculated using applicant reported figure of $100,000 per year

  • Displaced electricity is calculated as 80 percent of that reported in the application. It seems optimistic to assume that the generation would be fully utilized during the summer months - the only time the project would be operational.

Concerns:

Potential land ownership issues, Tanacross Inc. and Doyon own lands needed for the project, Tanacross Inc. has not been cooperative in the past and has not committed to any agreement to date.



Possible Enhancements:

None noted



Long Term Sustainability:

It is reasonable to assume long term sustainability for this project.


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