1. 1 Southeast Alaska Power Agency SEAPA’s Mission: To provide the lowest wholesale power rate consistent with sound utility planning and business practices. We exist for the long-term benefit of our member utilities and the rate payers, providing unified regional leadership for project development and prudent management of our interconnected power system. NWHA 2014 Annual Conference – Seattle, WA Trey Acteson, CEO

2. Southeast Alaska 2 Regional Profile: Extends 500 miles Metlakatla to Yakutat 35,000 sq. miles Land ownership dominated by Fed 95% Mostly Inventoried Roadless 18,500 miles of shoreline 34 Communities 28 < 1000 people 12 < 100 people S.E. Population 75,000 33k Juneau 20k SEAPA Interconnected Region 9k Sitka

3. Who is SEAPA? Southeast Alaska Power Agency Regional Generation & Transmission Joint Action Agency SEAPA owns the Tyee and Swan Lake Hydroelectric Projects, providing wholesale power and energy to the Municipalities of Ketchikan, Wrangell and Petersburg SEAPA owns the transmission lines linking those communities together – Approximately 175 miles of transmission, including 14 miles of submarine cable Evolved from the Four Dam Power Pool SEAPA’s hydro projects were originally built by the State in early 1980’s and later purchased Provide bundled services (Scheduling, Planning, Engineering, O&M, Water Mgmt., etc.) Facilitate regional project development

4. SEAPA Control Area PSG KTN WRG Swan Lake Tyee Lake 25 MVA 130,000 MWh 25 MVA 77,000 MWh SEAPA Generation 4 2011 2012 Meters Load/MWh PSG- 2112 55,404 WRG- 1979 38,509 KTN- 7443 181,932 Totals: 11,534 275,845 MWh Note: Only 12,000 meters to spread cost of new development Petersburg Wrangell Ketchikan Tyee Swan

5. Regional Hydrosite Evaluation Purpose: Enhance S. E. Alaska Integrated Resource Plan (SEIRP) Catalog potential hydropower sites Establish desired data set for evaluation Conduct field studies to fill SEIRP gaps Raise base level of knowledge Create ranking criteria/methodology Establish regional database for decision makers 5

6. Hydrosite Evaluation – Focus Area 6

7. Challenges Over 60 unique sites Limited funding 1.7 million Remote logistics Weather Safety Balancing confidentiality with mission 7

8. Project Approach Step 1 - Select project manager (MCM) Step 2 – Define overall objectives (Calibration) – Review Preliminary Assessment (SEIRP) – Perform Gap Analysis Step 3 – Project definition – Data collection objectives Step 4 – Reconnaissance Step 5 – Analysis & Recommendations 8

9. Status Inspection criteria defined Project library structure created Gap analysis of SEIRP Reconnaissance plan developed Field team deployed to Annette Island in 2013 to evaluate energy and capacity content capabilities of entire island Basin hydrology assessment (inflow prediction) Flood estimation using USGS regression analysis Stream gauge installation at two sites Intake/Impoundment surveys Bathymetric survey (depth) and side band LIDAR (storage) assessment 9

10. Process Refinement 10 Best to deploy hydro guru on initial recon Cluster “like” sites to minimize costs Cleary define objective for each site Clearly define technical teams and equipment Explore lower-tech data collection options Ensure adequate redundancy Expect delays – Be flexible

11. Photo Tour Blue Lake – Sitka Whitman Lake – Ketchikan Swan Lake – Near Ketchikan 11

12. Blue Lake - Sitka 12 Raise dam 83’ New Powerhouse (3) 5.7MW turbines New 1 MW Fish Valve Unit Decommission (4) turbine generators New intake structure and gate house New surge chamber Penstock and tunnel upgrades Additional 34,500 MWH firm energy (27%) Cost: $142M + 15M Diesel Project

13. More Blue Lake 13

14. Whitman Lake – Ketchikan (KPU) 14 Dam constructed in 1927 2 - 42” penstocks 4.6 MW output Supplies hatchery

15. 15 SEAPA’s Swan Lake Dam 174’ High & 430’ long at crest. Reservoir capacity 86,000 acre-feet.

16. 16 Swan Lake Reservoir Expansion Project Cost: $13,391,869 BENEFITS: Displaces up to 800,000 gallons of diesel annually ($2.75 million) Adds 25% more active storage Maximizes use of existing infrastructure Shifts spill to winter generation Compliments other projects Adds operational flexibility Timed with load growth

17. Swan Lake Status FERC Board of Consultants assembled 30% Design Firm under contract Non-capacity license amendment to be filed in April 2014 Actively pursuing State grant funding Construction 2015/16 17

18. 18 Questions?