The Chilkat Valley News, Haines Alaska
Chilkat Valley News, Haines, Alaska Serving Haines and Klukwan since 1966
Chilkat Valley News, Haines Alaska

Volume XXXVIII    Number 17,   May 1, 2008

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Diesel ups electric bills; utility seeks more hydro

By Jessica Edwards

Local electric bills have increased twice in the past four months due to use of supplemental diesel power required by low water levels at Skagway’s Goat Lake.

While utility officials characterize the long-term diesel use as unusual – previous to February, diesels were required only seven months since Haines connected to hydroelectric power in 1998 – they say that without new sources of hydro, diesels will be required into the future, at least during peak winter months.

Alaska Power and Telephone recently asked Haines and Skagway governments for comment on a proposal to develop a hydro dam on a lake above Chilkoot Lake, an idea that’s been studied for decades.

The connection of a new hydro project at Kasidaya Creek in August will help maintain water levels at Goat Lake, alleviating problems like the recent one, but won’t provide enough power to cover peak usage or community growth, utility manager Stan Selmer said this week.

Base rates of 7.7 cents per kilowatt-hour in Haines, fairly stable for the last three years, rose to 9 cents for February and March and jumped again to 10.61 cents in April, Selmer said. (Additional charges push rates to 23 cents per kilowatt-hour in town.) Rates may rise again in July, but Selmer was hopeful Goat Lake would be back online to prevent another hike.

If hydro generation is at full capacity for June and July, rates could be lower, he said.

Hydro is currently providing a little more than half the power for Haines and Skagway, Selmer said. This time of year, warm weather and increased water flow can reduce AP&T’s daily consumption of diesel from 2,500 gallons to 750 gallons in a single day, he said.

The cost to customers of generating electricity entirely from hydro is 7.66 cents per kilowatt-hour, compared to 26.8 cents for full reliance on diesel, Selmer said.

"We’re hoping for snowmelt," Selmer said. Goat Lake is currently down 35 feet. The maximum it is allowed to be drained is 40 feet. In the past, Goat Lake has begun to fill from spring melt between May 25 and June 5.

Selmer blamed the energy shortfalls on low rain last fall.

The completion of the three-megawatt Kasidaya Creek project this August will supplement energy needs while the river runs. Selmer said that would help keep Goat Lake full during the summer.

Borough Mayor Fred Shields this week criticized a U.S. Forest Service permit condition requiring the utility to release at least 8.5 cubic feet per second of water to be released into Pitchfork Falls, the outflow stream of Goat Lake, after May 15.

"In today’s climate, that permit needs to be revisited," said Shields. "Any tourists coming to Skagway won’t know whether or not there was a waterfall there. The priority should be generating power."

Selmer said in response to requests, the Forest Service in 2005 had already reduced the flow requirements for Pitchfork Falls from 13 cubic feet per second to 8.5. Forest Service officials this week said although there was an application process to change the permit requirements, further reductions seemed unlikely.

The current four mega-watts of power supplied by Goat Lake are generated by about 32 cubic feet per second, meaning that about one mega-watt is released to keep the falls running from May 15 to Sept. 30.

But Selmer said the May start date for the releases generally coincided with springmelt, making the available flow adequate. "We’ve never had a situation come about where we had to make a choice between hydro generation or the waterfall," Selmer said. "There’s always been enough water for the releases."

"I’m comfortable the lake is going to be full before we start the release," Selmer said.

AP&T is seeking an endorsement from the Haines Borough for further study of hydro sources here, including at Connelly Lake, in response to a call from borough leaders for cheaper power rates. Borough support is required to begin the permitting process for multiple state and federal agencies, and to study the project’s conceivability, Selmer said.

Projected power use increases in Haines and Skagway in a system that must already run make-up diesel during peak times make a new hydro project such as the Connelly Lake project a necessity, Selmer said.

"The only way to defeat running peaking diesel is to build another storage facility," he said.

Connelly Lake was a site deemed promising by energy surveys in the early 1980s. Haines Power and Light investigated a six-megawatt facility at Connelly Lake, formerly called Upper Chilkoot Lake, in the mid-1990s, surveys on which AP&T is basing its current interest.

Selmer said building the project to maximum capacity, an industry standard, would mean a 12 rather than a 6-megawatt project

A 12-megawatt project could supply cruise ships, which currently run diesel engines while in port, with hydro-generated electricity. In turn, selling electricity to the cruise ships would help recoup the cost of the project, Selmer said.

Building a storage hydro facility at Connelly Lake would require construction of a containment berm or dam 30-50 feet high and possibly larger for a 12-megawatt capacity. Other required infrastructure are the penstock—the pipe that constricts the water flow downward for optimal energy transfer, a powerhouse, a road or trail to the powerhouse, and transmission lines connecting the powerhouse to existing infrastructure on Lutak Road.

"It would be our intention to build lines underground," Selmer said, adding that geography in certain sections might require short stretches of overhead lines to prevent costly, frequent repairs.

 

 

 

 
 

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Last modified: Saturday, 03-May-2008 16:09:14 PDT