The Evolution of Integrated Planning in Southeast Alaska

1. The Evolution of Integrated Planning in Southeast Alaska April 2010

2. Dam and penstock - upper lake, Annex Creek Dam and penstock - Annex Creek 1913-1939, AEL&P

3. Southeast Conference Mission Statement • The mission of Southeast Conference is to undertake and support activities that promote strong economies, healthy communities, and a quality environment in Southeast Alaska. • Southeast Conference is a private membership organization that works to advance the collective interests of the people, communities, and businesses of Southeast Alaska. It is the Alaska Regional Development Organization (ARDOR), Federal Economic Development District (EDD), and USDA Resource Conservation and Development (RC&D) Council for the region.

4. The SEC Energy Committee Energy Committee Mission • Our vision for Southeast Alaska is to reduce, to the maximum extent possible, the use of diesel as a primary fuel source for the generation of electricity. • This will be accomplished through the utilization of the regions plentiful hydroelectric potential and the development of interconnected transmission systems where economically feasible to share these resources throughout the region.

5. SEC Energy Committee Goals PROGRAM GOALS • Reduce dependence of fossil fuels. This is critical in light of the recent price increases in oil. • Bring affordable hydro power to communities where this is technically and economically feasible. • Develop regional electrical grids interconnecting Southeast communities and utilities with hydroelectric generation. • Work with member communities/utilities to develop adequate energy infrastructure including alternative energy sources to meet current and future needs. • Lower costs to rate payers and communities and increase economic development opportunities.

6. Historical Planning Efforts • 1924 – U.S. Forest Service (USFS) • 1947 - Federal Power Commission, USFS • 1979 – CH2M Hill, Army Corps of Engineers • 1980 – Alaska Power Association, Harstad • 1987 – Alaska Power Association, Harza • The Southeast Alaska Transmission Intertie Study • 1997 – S. E. Conference, Acres International • Southeast Alaska Electrical Intertie System Plan • Updates in 2003 & 2005 by D. Hittle & Associates • 2007 – Alaska Energy Authority, Hatch Acres • AK/BC Intertie Feasibility Study

7. SE Conference Planning Milestones • 1997 – Acres Report creates first System Plan for Southeast Intertie • 2000 – Congressional Authorization for the S.E. Intertie (bill signed into law, authorizes up to $384 million with a 20% local match) • 2002 – SEC hires Energy Coordinator to facilitate planning efforts • 2003 – USDA Rural Development grant for economic analysis of interties to Kake & Hoonah (SEC top priority) • 2004 – Kwaan Electric Transmission Intertie Cooperative formed • 2005- Denali Grant funds D. Hittle Report (Kake Intertie) • 2006 - Intertie from Juneau to Greens Creek built (halfway to Hoonah) • 2007 – AK/BC Study Completed, $2 million dedicated to Kake Intertie, Legislative grant received to finish Swan-Tyee intertie (Nov ‘09) • 2008 – Legislative grants of $500,000 for Kake - Petersburg Intertie and $2 million for Reynolds Creek awarded to Southeast Conference • 2008 – Public Meetings held in Kake and Petersburg on Intertie, ADOT&PF announces joint-project for road, intertie a top priority. Energy planning meetings also held in Angoon and Hoonah. • 2009 –State (HB 152) grant program brings new investment to Southeast AK renewable energy projects. Kake Intertie Study updated. • 2010 – State Energy Policy (SB 220, HB 306), SE IRP funded, multiple energy projects funded by Legislature. Forest Service and S.E. Conference initiate preconstruction, scoping activities for KPI

8. Old Model - Loads and Resources • Snettisham and Mega-hydro projects constructed (i.e. Takatz, Thomas Bay) • Build a single integrated grid system from Metlakatla to Skagway to allow for the dispatch of resources on a regional basis.

10. Southeast’s Hydros = “Bullet Line”

11. New Approach to Community Resource Development • Working together with local municipalities, utilities and multiple governmental agencies, including the Alaska Energy Authority to identify and develop resources in close proximity to community needs. • Develop interconnected transmission systems where economically feasible to share these resources to adjacent communities without sufficient resources nearby.

12. Where do we go from Here? • Update the 1997 Southeast Alaska Electrical System Plan with Integrated Resource Plan • Establish Regional Advisory Council • Evaluate existing and proposed generation facilities & load forecasts • Examine potential demand-side and supply-side improvements • Ensure public benefit is maximized • Work collaboratively with communities/utilities to identify renewable resources in immediate proximity to the consumer • Where appropriate and economically feasible interconnect communities with regional grids

17. Thank You – especially AEA! Southeast Conference www.seconference.org Robert Venables Shelly Wright Energy Coordinator Executive Director David Stone, Chair Maxine Thompson Energy Committee President Southeast Conference Annual Meeting, September 14-16, 2010 in Petersburg, AK