GPA/GWA FINAL EIS

GPA/GWA FINAL EIS GPA/GWA FINAL EIS 11

Presentation to the Guam Legislature

On the DOD FEIS and Discussions to date

August 23, 2010

Presentation Outline Presentation Outline

CONSOLIDATED COMMISSION ON UTILITIESCONSOLIDATED COMMISSION ON UTILITIES Simon A. Sanchez, II, ChairmanSimon A. Sanchez, II, Chairman

GUAM POWER AUTHORITYGUAM POWER AUTHORITY Joaquin C. Flores, P.E. GMJoaquin C. Flores, P.E. GM

GUAM WATERWORKS AUTHORITYGUAM WATERWORKS AUTHORITY John Benavente, P.E. GMCUSJohn Benavente, P.E. GMCUS


FEIS proposes $740M for Guam Infrastructure

From the start, CCU, GPA and GWA Position: Civilian ratepayers should be shielded from direct and

indirect cost impacts resulting from the proposed buildup.

DoD remains a GPA customer The northern aquifer and our environment shall be

protected for the long term. Mandatory shared responsibility The existing GWA NWWTP shall be the only WW plant over the

aquifer


In 2006: NO commitments to fund off-base civilian infrastructure.Since 2006, we have engaged in hundreds of hours of meetings and extensive exchange of data to determine best solutions, estimated costs and “who pays”.


Today, FEIS “preferred alternatives”:Provide $740 Million for water,

wastewater and power improvements to serve civilian and military needs, AT NO CAPITAL COSTS TO CIVILIAN

RATEPAYERS.DOD WILL PAY 100% OF THESE COSTS!

Unresolved Issues Remain Though DoD will be responsible for payments, how

funding assistance will be provided to GPA/GWA is still being determined. First meetings w/ Japan Bank for Intl.

Cooperation (JBIC) held earlier this month. Direct loans or grants, or indirect through

Special Purpose Entities (SPEs) or other types of Public-Private-Partnerships (PPP)?

WHETHER FUNDING COMES FROM JAPAN, DOD OR THE US GOVT., OUR POSITION IS CLEAR: CIVILIAN RATEPAYERS WILL NOT BE BURDENED

BY CAPITAL COSTS RELATED TO THE BUILDUP.


FEIS: Power Impacts Summary

FEIS Identifies ~$160 million in available funding for the power infrastructure:

CT upgrade:

25% or ~ $37 million T&D:

75% or ~ $122 million


FEIS: Power Demand Load requirements for Marine Corps relocation and other

Department of Defense (DOD) upgrades 70 Megawatt (MW) Total Additional Demand

30 MW DOD Firm Load (24/7) 40 MW DOD Transient Load (Intermittent)

DOD remains a GPA customer

New GPA/Navy Utility Services Agreement (USA) Negotiations have started


THERE IS ENOUGH POWER GENERATION CAPACITY

GPA Generation Capacity: 552 MW Current Peak: 272 MW Peak after Build Up: 342 MW (est) Excess Generation Capacity after

build up: = 210 MW GPA & DOD agree there is sufficient

generation capacity to support the build up


Preferred Alternative Recondition up to 5 existing GPA permitted

facilities to provide peaking power/reserve capacity

Yigo, 2 @ Dededo, Marbo, Macheche FEIS states “Planning indicates that new power

generation capacity would not be required to meet the planned demand increase.” (Vol 6, 2-9)

No Additional Long Term Alternatives - All other power alternatives in the DEIS to address additional load and capacity were “deemed unnecessary” (Vol 6, 2-3)

“This showed that adequate power would be fairly easily provided in time to accommodate the proposed military relocation.” (Vol 6, 2-3)

FEIS: Generation


GENERATION SOLUTIONS GPA & DOD agree that 3 GPA CT’s should be

refurbished to support construction phase Estimated at $37 million (paid by DOD) CT’s located at Dededo & Yigo (~60 MW) Start by 2012

Navy has completed assessment for refurbishment of 5 CT’s

DOD to pay 100% of $37 million cost to refurbish CT’s

All existing civilian ratepayers will benefit from this improvement in generation reliability


FEIS: Renewable Energy

OTECGeothermalWind

May be considered in the

future, but not addressed in this

FEIS

SolarBiomassFuel CellsWave/Tidal

Eliminated as viable source to serve direct load

of Build Up


Alternative Energy & Fuel Diversification - Ongoing

Discussions GPA is pursuing 80MW of renewable energy sources, primarily from wind and solar

GPA and DOD have been working collaboratively on renewable efforts

GPA will not support renewable power generation solutions that only serve on-base needs. All renewable generation benefits must be shared with the entire island grid via GPA


T&D System Upgrades and new T&D Infrastructure needed to mitigate direct, indirect, and induced impacts of Build Up

DOD remains a transmission level customer of GPA

Agreement reached between DoD & GPA on $122 million of T&D projects (transmission lines and substations) directly related to Build Up

FEIS:Transmission &

Distribution


Unresolved IssuesGENERATION – New Base Load

To insure continued generation reliability, GPA believes buildup accelerates the need for the next base load generator from 2022 to 2017

GPA believes DOD should pay for induced impacts caused by accelerating the need for the new base load

GPA and DOD have yet to determine and agree on induced impact


New Base Load: Buildup accelerates need from 2022 to

2017 60 MW Base Load requirement

$150 million for conventional oil fired $120 million for the plant + $30 million for

additional fuel storage

$300 million for Liquefied Natural Gas (LNG) system (includes fuel storage)


Unresolved Issues T&D and Funding Sources

GPA is still concerned about other indirect impacts on T&D assets in the civilian sector caused by the buildup $30 million of T&D projects necessary to mitigate

indirect impacts of the Build Up have been estimated Responsibility of costs related to mitigating these

impacts on T&D assets have yet to be determined Other cost requirements to resolve:

Program Management Office (PMO), Environmental Studies and Archaeological Services

Aquifer YieldAquifer Yield

Aquifer can yield 80 million gallons/day Aquifer can yield 80 million gallons/day (MGD)(MGD)11

Peak during construction surge is 53 Peak during construction surge is 53 MGDMGD

Post construction (base open) will be Post construction (base open) will be less less

Current professional consensus; Current professional consensus; sufficient water to meet buildup growthsufficient water to meet buildup growth

1 – Theoretical Sustainable Yield from 1992 Groundwater Study by Barrett/Mink. 2009 1 – Theoretical Sustainable Yield from 1992 Groundwater Study by Barrett/Mink. 2009 Review by UOG-WERI. Concurred by GWA, DoD, GEPA.Review by UOG-WERI. Concurred by GWA, DoD, GEPA.

FEIS: Protecting the AquiferFEIS: Protecting the Aquifer

Parties will cooperate in all aspects Parties will cooperate in all aspects of water resource development on of water resource development on Guam to ensure the long term and Guam to ensure the long term and sustainable management of the sustainable management of the Northern Guam Lens Aquifer (NGLA).Northern Guam Lens Aquifer (NGLA).

Updated comprehensive study of the Updated comprehensive study of the Aquifer funded by DoD is underway, Aquifer funded by DoD is underway, led by UOG/WERI and supported by led by UOG/WERI and supported by USGS, USEPA, DoD, GEPA and GWA.USGS, USEPA, DoD, GEPA and GWA.

FEIS: Water Supply SolutionFEIS: Water Supply Solution

$165 million for a new northern water $165 million for a new northern water system of wells, treatment, transmission system of wells, treatment, transmission and distribution assets.and distribution assets. DOD WILL PAY 100% OF THESE COSTSDOD WILL PAY 100% OF THESE COSTS

The new northern system will be inter-The new northern system will be inter-connected to the existing GWA and DoD connected to the existing GWA and DoD systems so that the three systems can systems so that the three systems can eventually work as an integrated whole. eventually work as an integrated whole.

Water Supply Ongoing Water Supply Ongoing DiscussionsDiscussions

DoD transmission and distribution DoD transmission and distribution systems Loop design and connection systems Loop design and connection pointspoints

Price for DoD water during Price for DoD water during construction phase construction phase

Price of DoD Transfer and exchange Price of DoD Transfer and exchange of excess water. of excess water.

Wastewater

FEIS: Wastewater (WW) FEIS: Wastewater (WW) SolutionsSolutions

NDWWTP 12MGD Primary Treatment UpgradesNDWWTP 12MGD Primary Treatment Upgrades $65M$65M

NDWWTP 18MGD Secondary Treatment Upgrades $135MNDWWTP 18MGD Secondary Treatment Upgrades $135M

Collection System Improvements Collection System Improvements $85M $85M

Hagatna 12MGD Secondary Treatment Upgrades $150MHagatna 12MGD Secondary Treatment Upgrades $150M

Total : Total : $435M$435M

FEIS: Wastewater (WW) FEIS: Wastewater (WW) AlternativesAlternatives

FEIS Wastewater Alternatives 1a FEIS Wastewater Alternatives 1a & 1b& 1b

FEIS: Northern WW Treatment:FEIS: Northern WW Treatment:

Upgrade and expand NDWWTP with Upgrade and expand NDWWTP with Marines becoming a GWA customer Marines becoming a GWA customer (like AAFB)(like AAFB)

Complete rehab of NWWTP to provide Complete rehab of NWWTP to provide primary treatment to 12 MGDprimary treatment to 12 MGD

Upgrade to secondary treatment to 18 MGDUpgrade to secondary treatment to 18 MGD

FEIS: Central WW FEIS: Central WW Treatment/CollectionTreatment/Collection::

Upgrade Hagatna to 12 MGD primary Upgrade Hagatna to 12 MGD primary treatment treatment

Upgrade Hagatna to 12 MGD Upgrade Hagatna to 12 MGD secondary treatment secondary treatment

Build $82M worth of new WW Build $82M worth of new WW collection systems (new sewer lines) collection systems (new sewer lines) in northern and central Guamin northern and central Guam

FEIS: Figure ES-26 Utilities and Roadway FEIS: Figure ES-26 Utilities and Roadway ProjectsProjects

DoD/GWA on-going DiscussionsDoD/GWA on-going Discussions

• Increase NDWWTP capacity from 6 MGD Increase NDWWTP capacity from 6 MGD to 8-9 MGD with interim upgradesto 8-9 MGD with interim upgrades

Cost of transfer and exchange of DoD Cost of transfer and exchange of DoD excess waterexcess water

Cost of DoD water for construction phase Cost of DoD water for construction phase Design details of DoD transmission and Design details of DoD transmission and

distribution systemsdistribution systems Details of “One Guam” transfer of DoD Details of “One Guam” transfer of DoD

systems to GWAsystems to GWA


SUMMARY OF UTILITY ISSUES SUMMARY OF UTILITY ISSUES FACING BUILDUPFACING BUILDUP


Summary DOD/US Govt. should pay for its impact, direct and indirect.

$740 million has been proposed to upgrade Guam utility infrastructure at no cost to the people of Guam.

Hold Fed. Officials to their words of “One Guam”, “Green Guam” and that “the buildup cannot be a burden to the people of Guam”.

If funded in a sufficient and timely manner, the “preferred solutions” as summarized in the FEIS are achievable and can provide benefits for existing and future utility customers.

If insufficient funding is provided in an untimely manner, Guam utilities will not be able to permit the construction of facilities that are needed to commence the buildup (e.g. worker housing).

Much work remains to address unresolved issues.


Si Yu’os Ma’ase

GPA/GWA FINAL EIS

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