4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues.
4.3.1 System Design
Provide the following information for the proposed renewable energy system:
-
A description of renewable energy technology specific to project location
-
Optimum installed capacity
-
Anticipated capacity factor
-
Anticipated annual generation
-
Anticipated barriers
-
Basic integration concept
-
Delivery methods
|
Renewable energy technology specific to location – The Project will be a conventional hydroelectric project. Hydroelectric technology is well developed, and provides most of the renewable energy generated in the world in general, and Southeast Alaska in particular. The Project will utilize the abundant rainfall, glacial melt, and steep topography afforded by the Schubee Lake basin to generate renewable energy.
Optimum installed capacity – The optimum installed capacity will be determined during Phase II. AP&T current estimates the installed capacity at 6.0 MW.
Anticipated capacity factor – The anticipated capacity factor is estimated to be 57% (at 6.0 MW).
Anticipated annual generation – The potential annual generation is estimated to be 30 GWh (at 6.0 MW).
Anticipated barriers – There are no known technological barriers to development of the Project at this time.
Basic integration concept – The ULC system is already a hydro-based system with diesel backup. Integrating another hydro project to the system will not present any difficulties. The run-of-river hydros in the system (Lutak, Kasidaya) will be dispatched first, followed by storage hydros (Goat Lake and Schubee Lake). Generally, the storage hydros will be dispatched based on their then-current storage levels and operating characteristics. In addition, one or both of the storage hydros would always be on-line to provide system stability.
Delivery methods – The Project would be interconnected to the ULC grid either near Haines via a new submarine cable or at Kasidaya Creek via the existing 14-mile long, 34.5 kV submarine cable that connects Skagway and Haines.
|
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues.
|
The project is on Tongass National Forest land that is in an inventoried roadless area and has a Semi-Remote Recreation land use designation. Under current rules, the roadless area status is potentially very problematic but not necessarily fatal. Because of the Federal lands, a FERC license would be required, as well as a USFS Special Use Permit. Some State of Alaska lands would also be utilized, which would require a land lease from ADNR. The full extent of the land ownership issues and the steps necessary to address those issues will be explored and documented in the proposed Phase II studies.
|
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues.
-
List of applicable permits
-
Anticipated permitting timeline
-
Identify and discussion of potential barriers
|
Applicable Permits:
-
FERC License
-
USFS Special Use Permit
-
404 permit (Corps of Engineers)
-
Water right (ADNR),
-
State land lease (ADNR)
-
Coastal zone consistency review (ADNR-DCOM)
-
Fish habitat permit (ADF&G)(possibly)
-
SHPO review
Permitting Timeline: Permit applications will be filed with the various agencies in Phase III after completion of the necessary feasibility assessments in Phase II. An application for a preliminary permit from FERC will occur before or during Phase II.
Potential Permitting Barriers: AP&T is not currently aware of any permitting issues that would preclude development of the Project. Permitting barriers may become known as the Phase II work progresses. The USFS Land Use Designation (LUD) for this area is Semi-Remote Recreation, and transportation and utility development is allowed. However, the site is in an inventoried roadless area, which means that authorization of Project development by the Forest Service would need to be made by the Secretary of Agriculture rather than by the Tongass National Forest.
|
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will be addressed:
-
Threatened or Endangered species
-
Habitat issues
-
Wetlands and other protected areas
-
Archaeological and historical resources
-
Land development constraints
-
Telecommunications interference
-
Aviation considerations
-
Visual, aesthetics impacts
-
Identify and discuss other potential barriers
|
Threatened and endangered species: AP&T is not aware of any threatened and endangered species in the Project area. AP&T expects to conduct field studies during Phase III regarding threatened and endangered species, but impacts are not anticipated.
Habitat Issues: Habitat surveys will be conducted by to determine if fish utilize any part of this drainage. A mountain goat survey will be necessary for this project. No other issues are expected at this time.
Wetlands: The Project will affect some wetlands, including Schubee Lake and possibly small muskeg areas along the penstock route. However, no significant impacts are expected and final configuration of the project has not been made.
Archaeological Resources: Archeological surveys will need to be conducted during Phase III. No significant impacts to archeological or cultural resources are expected.
Land Development Constraints: No land development constraints are known at this time other than the potential for the USFS LUD to place some restrictions on this site. Permits acquired from the resource agencies will specify any necessary constraints for the Project features.
Telecommunications Interference: A 34.5 kV submarine cable will not create interference with telecommunications.
Aviation Considerations: The project does not pass by an airport and transmission of electricity would be over a submarine cable, which would be out of the way of any aviation.
Visual, Aesthetic Impacts: Impacts to visual aesthetics are unknown at this time until a conceptual design is developed during Phase II. The LUD for this site could make this something to address, however.
Other Potential Barriers: No other potential barriers are known at this time.
|
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants Records or Analysis, Industry Standards, Consultant or Manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following:
-
Total anticipated project cost, and cost for this phase
-
Requested grant funding
-
Applicant matching funds – loans, capital contributions, in-kind
-
Identification of other funding sources
-
Projected capital cost of proposed renewable energy system
-
Projected development cost of proposed renewable energy system
|
Anticipated Project costs (based on AP&T’s knowledge and experience at building hydroelectric projects):
Phase I (no reconnaissance phase proposed) $0
Phase II (see breakdown below) $200,000
Phase III (gross estimate) $4,000,000
Phase IV (gross estimate) $36,000,000
Total $40,200,000
Estimated Costs for Phase II: Feasibility Analysis/Conceptual Design
FERC Preliminary Permit Application $5,000
USFS Special-Use Permit Application $5,000
Stream gage installation $25,000
Hydrology studies $5,000
Conceptual design/optimization $80,000
Geotechnical reconnaissance $25,000
Draft feasibility report $15,000
Environmental scoping $30,000
Final feasibility report $10,000
Total For Phase II: $200,000
Requested Grant Funding: $160,000 (80% of total cost for Phase II)
Applicant Matching Funds: $40,000 (20% of total cost for Phase II)
Other Funding Sources: Other funding sources have not been identified at this time. AP&T will provide the $40,000 in matching funds for Phase II from its normal operating funds.
Projected Capital Cost of Renewable Energy System: $36,000,000 (assumed to be the cost of Phase IV Construction)
Projected Development Cost of Proposed Renewable Energy System: $4,200,000 (assumed to be the sum of Phase I, II, and III costs).
|
4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant.
(Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.)
|
The O&M cost for the Project is estimated to be approximately $250,000 per year. AP&T is not requesting grant funding for O&M costs.
|
4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
-
Identification of potential power buyer(s)/customer(s)
-
Potential power purchase/sales price - at a minimum indicate a price range
-
Proposed rate of return from grant-funded project
|
AP&T is developing this project to supply power to AP&T’s ULC system customers. AP&T expects that the regulated rates to its commercial and residential customers would be adjusted to reflect the capital costs added to the rate base; it is too early to identify how much adjustment would be necessary. Currently, AP&T’s customers in Haines and Skagway pay $0.2107/kWh (excluding PCE subsidy).
During the Phase II work, AP&T will evaluate whether the Project has the potential to supply power to cruise ships visiting either Haines or Skagway during the summer tourist season. Such sales could provide substantial revenue during the early years of the Project’s life. AP&T projects that a sales price of $0.20/kWh would be attractive to the cruise lines and the revenue from those sales would provide a positive net income to AP&T and the State.
|
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in evaluating the project.
|
Please see the attached Cost Worksheet.
|
SECTION 5– PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project.
The benefits information should include the following:
-
Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project
-
Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate)
-
Potential additional annual incentives (i.e. tax credits)
-
Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available)
-
Discuss the non-economic public benefits to Alaskans over the lifetime of the project
|
The people of Alaska will benefit from the Project development as follows:
Potential annual fuel displacement: The potential Project generation (30 GWh/year) is equivalent to about 2.14 million gallons of diesel fuel annually, or about 107 million gallons over a 50 year Project life. At a fuel cost of $3.00/gallon, the savings would be $6,400,000 annually. Fuel prices are expected to escalate; at an average fuel cost of $6.00/gallon, the savings over 50 years could be as much as $642,000,000.
Anticipated annual revenue: If sold at $0.20/kWh, the anticipated annual revenue for the potential Project generation would be $6,000,000.
Potential additional annual incentives: Not estimated.
Potential additional revenue streams : Not estimated.
Non-economic public benefits to Alaskans: The primary non-economic benefits of the Project are the environmental benefits from reducing diesel generation. The potential Project generation (30 GWh/year) is equivalent to about 25,000 tons of diesel emissions per year.
Other benefits: In the short term the local economy would benefit due to local hire for construction labor, materials for construction, and lease or rental of equipment. In the long term, there would be employment for O&M of the Project.
|
SECTION 6– SUSTAINABILITY
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
-
Proposed business structure(s) and concepts that may be considered.
-
How you propose to finance the maintenance and operations for the life of the project
-
Identification of operational issues that could arise.
-
A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation
-
Commitment to reporting the savings and benefits
|
AP&T operates and maintains all of the existing ULC generation, transmission, and distribution system to provide a high degree of reliability. The Project will be integrated into the ULC system, and will be operated and maintained in a similar manner.
With regular maintenance, a conventional hydroelectric project should have a minimum life of 50 years; there are many operating projects over 100 years old. Some components may need replacement or refurbishment during that time, but replacement of major items resulting in significant costs are not expected, since conventional hydroelectric equipment and materials are robust and commercialized. O&M costs are expected to be about $250,000 per year (2009 cost level). Operation and maintenance costs will be funded by revenues from the sale of power from the project.
AP&T will provide whatever reporting of savings and benefits that AEA considers appropriate.
|
SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS
Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved.
Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants.
|
AP&T conducted a site visit in August 2009 to measure flow in the outlet stream and to take lake depth readings to help determine the energy potential of this site. AP&T expects to begin the Phase II work in July 2010. AP&T may elect to apply for a FERC Preliminary Permit prior to July 2010 in order to expedite the schedule.
No other grants have been applied for to pay for this project at this time.
|
SECTION 8– LOCAL SUPORT
Discuss what local support or possible opposition there may be regarding your project. Include letters of support from the community that would benefit from this project.
|
Enclosed are letters of support for this project, including a resolution from the Haines Borough (Resolution No. 09-01-149).
|
SECTION 9 – GRANT BUDGET
Tell us how much you want in grant funds Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant.
Include an estimate of budget costs by milestones using the form – GrantBudget3.doc
|
Total Project Costs: $40,200,000
Investments to date and funding sources: AP&T has invested approximately $5,000 in labor and helicopter services in making preliminary investigations of the Schubee Lake site.
Amount requested in grant funds: $160,000 (for Phase II work)
Additional investment by AP&T: AP&T will provide matching funds in the amount of $40,000 for Phase II work (20% match).
|
SECTION 10 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
|
A. Resumes of Applicant’s Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4.
B. Cost Worksheet per application form Section 4.4.4.
C. Grant Budget Form per application form Section 9.
D. Letters demonstrating local support per application form Section 8.
E. An electronic version of the entire application on CD per RFA Section 1.6.
F. Governing Body Resolution or other formal action taken by the applicant’s governing body or management per RFA Section 1.4 that:
-
Commits the organization to provide the matching resources for project at the match amounts indicated in the application.
-
Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant.
-
Provides as point of contact to represent the applicant for purposes of this application.
-
Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations.
F. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations.
|
Print Name
|
|
Signature
|
|
Title
|
|
Date
|
|
AEA 10-015 Application Page of 10/7/2009
Share with your friends: |
