1. Alternative Financing
April 6, 2017
Wayne Dyok, H2O EcoPower

2. Hydropower: Providing Clean Energy
Susitna-Watana Hydro would displace an estimated 1.3 million tons of CO2 annually
That equals the annual emissions from 231,246 cars, or more than half of all registered passenger vehicles in the state.
Car emissions source EPA
11/7/2018

3. Project Highlights Susitna-River Mile 184
87 River Miles from Talkeetna
22-32 River Miles upstream from Devils Canyon
42-mile reservoir, average width of one mile
~50 percent of Railbelt’s Energy Demand (2.8 GWH of annual energy)
Dam Height: 705 Feet
Estimated Cost: $5.6 Billion

4. Project Funding
Funded total of $192 million through Capital Fund appropriations
FY09-11: $11.17 million (combination of Railbelt Energy Fund and General Fund)
FY12: $65.7 million (Railbelt Energy Fund)
FY13: $0
FY14: $95.2 million (General Fund)
FY15: $20 million (General Fund)

5. Economic Impact Study conducted by Northern Economics
$11.2 billion in energy savings during first 50 years (2014$)
2.39 cost benefit ratio based on energy savings
3.07 cost benefit ratio based on new capacity, generation facility retirement, greenhouse gas reductions and power outage reduction
1,300 average annual jobs during construction
205 pre-construction and non-construction jobs on an annual basis ( )
$800 million in local pre-construction spending
$2.6 billion in local construction spending
11/7/2018

6. Economic Benefits Direct jobs:
5,000 preconstruction and non-construction direct jobs ( )
12,000 direct overall construction workforce
Local spending and statewide multiplier effects:

7. Project Cost Range

8. Comparing 3 Finance Options
Bond & RUS Financing
“Donut Hole” is financed with AEA Revenue Bonds (30 years, 5% interest, refinanced)
RUS financing remainder of construction (35 years, 4% interest)
$0.066/kWh 50 year average real price
All Bond Financing
All construction financed with AEA Revenue Bonds (30 years, 5% interest, refinanced)
$0.083/kWh 50 year average real price
State Loan & RUS
“Donut Hole” is financed with State loans (30 year repayment beginning after RUS is paid off, 0% interest)
Similar to Bradley Lake model
$0.041/kWh 50 year average real price

11. P3 CONSIDERATIONS FERC License Land Ownership
Memorandum of Understanding re Power Purchase Agreements
State of Alaska Approvals
Construction Schedule