Electrical Power for Valdez and the Copper River Basin-1981

Valdez/Glennallen Power Market AnalysisCHAPTER IINTRODUCTIONPurpose aQd ScopeThis power market analysis evaluates alternatives for meeting the powerneeds of the Valdez/Glennallen areas after full utilization of theSolomon Gulch hydro project, now under construction. Included are powermarket forecasts, analyses of various alternatives for supplying theprojected needs, and estimates of future energy costs. The Valdez andGlennallen areas are considered as one, for the purposes of this report,since the Copper Valley Electric Association (CVEA) line between the twoareas is presently under construction.The analysis primarily focuses on the Allison Creek Hydro Project as apotential to meet area power needs after full utilization of SolomonGulch. It also looks at the alternatives of (1) pressure reducingturbines in the Alyeska Pipeline, and (2) interconnection with Railbeltarea power supplies.Project Plans and CostsThe Corps of Engineers Southcentral Railbelt Stage II Checkpoint reportof April 1978 titled, Hydroelectric Power and Related Purposes forValdez, Alaska, identified the Allison Creek project lake tap scheme ashaving the best potential of several alternatives considered. Sincethat report, the Corps designed two alternatives for using a powertunnel and a penstock between lake tap and powerplant. Alternative 1uses a "lower" powerplant near the shoreline and alternative 2 an"upper" one on the mountainside. The following chart outlines these:Powerplant LocationInstalled CapacityAverage Annual EnergyFirm EnergyPlant Factor (firm)Project CostUnit Power CostAverage Annual CostUnit Energy CostTransmission LineAlternative 1Lower8 MW39,350 MWH34,300 MWH48.9%$37,250,000$5,029/kW$3,489,52110.2¢/kWh3 milesPrevious StudiesAlternative 2Upper8 MW37,250 MWH32,200 MWH45.9%$34,301,000$4,63l/kW$3,229,17610.0¢/kWh3.5 milesAn inventory of potential hydroelectric sites in Alaska was done by theAlaska District of the U.S. Bureau of Reclamation (now the Alaska PowerAdministration) in the 1960's. Several sites near Valdez, includingAllison Creek, were part of this inventory. However, when the inventory1