Travis MillionManager of Power Generation

NWHA Annual ConferenceFebruary 20, 2013

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Large Service Area◦ Copper Basin and Valdez

Electrically isolated from neighboring utilities

50% Hydro / 50% Fossil Fuels Current Rates

◦ 18¢/kWh (Summer) to 30¢/kWh (Winter)

CVEA Overview

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Project Cost Potential Energy Output Environmental and Cultural Concerns Land Ownership Location to Existing Transmission

Infrastructure

Hydro Scoping Limitations

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Pre-Feasibility Study completed January 2011◦ Capacity 4.2-6.4 MW (37,000-45,000 MWh)◦ Multiple Land Owners

Chugach Alaska Regional Native Corporation Tatitlek Alaska Village Native Corporation

Lands rich with Alaska native cultural resources Conservation easements – Exxon Valdez Oil Spill

Trustee Council and Tatitlek Corporation USFS lands – Transmission line routing (roadless rule)

25 miles (138kV)

Silver Lake

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◦ Environmental Outlet regarded as a valuable natural salmon stream Large number of bird species in the area

Dense Eagle population

◦ Project Costs Estimated design and construction $157M Cost of power 31¢ to 41¢/kWh

Board of Directors concluded not to move forward on this project

Silver Lake

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Pre-Feasibility Study Completed – February 2008◦ FERC preliminary permit issued September 2008

Feasibility Study Completed – May 2010◦ 6 different options studied

Dam Storage (Option 3c) selected Difficult Construction

Site access, avalanche, glacial moraine Capacity 6.5 MW (22,000 MWh) Project Cost $63M

Cost of power 26¢/kWh

Allison Creek

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Change of Direction (Option 4a)◦ Final Feasibility Study addendum – January 2011

Run-of-River◦ No winter energy

Reduce risk utilizing a diversion structure◦ Capacity 6.5 MW (16,000 MWh to 23,300 MWh)◦ Construction Challenges

Steep terrain Short construction season Large amounts of snow

Allison Creek

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◦ Environmental Dolly Varden in bypass

reach of the creek Salmon downstream

of discharge◦ 4 miles of distribution

(25kV)◦ Project Cost $39M

Cost of power 21¢/kWh

Allison Creek

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FERC license application submitted August 2011◦ FERC Draft Environmental

Assessment - December 2012 Project Benefits

◦ Increases Hydro portfolio to 67%

◦ Displaces 1,100,000 gallons of diesel fuel annually

◦ Expands current hydro generation season

Allison Creek

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Financing options for Allison Creek Hydro◦ AK Renewable Energy Fund

CVEA awarded $2.2M◦ AK Power Project Loan Fund◦ AK SB25 – Loan Program◦ Direct state legislative appropriations

CVEA awarded $11M◦ Good project gets even better with Grant Funds

With grants, current cost of power 16¢/kWh

Construction scheduled to be completed October 2015

Allison Creek