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Generation for Generations
Atlin Hydro Project
The Sunny Atlin Experience
Generation
for
Generations
17Jan2017
Peter Kirby
President & CEO
XEITL LIMITED PARTNERSHIP
Generation for Generations
Atlin Hydro Project
Atlin
Generation for Generations
Atlin Hydro Project
Combining 3 Important Goals The TRTFN is actively building a working model that
can help sustain our people for many
generations to come.
1. Revival of cultural values and sustenance
2. Responsible management of resources
3. Sustainable economic development
The Atlin Hydro Project is a critical component of
achieving this vision:
Sustainable Development
Resource
Management
Development
Corporations
Cultural
Revival
Taku River Tlingit
First Nation
Xeitl Limited
Partnership
Atlin Hydro Project
TRTFN Development Corporations
Taku Wild
Corporation
Atlin Tlingit
Development
Corporation
TRTFN Shareholders
Taku Wild
Salmon
Products
0.01 %
Class A
Units
99.99 %
Class A
Units
Atlin
Tlingit
Economic
GP
Atlin Tlingit
Economic LP
(ATELP)
(Development
Corporation)
99.99 %
Class A
Units
0.01 %
Class A
Units
Common
Shares
100%
Xeitl Limited
Partnership
(XLP)
(Existing Hydro
Project)
Preferred
Shares
100%
Atlin Power
Ltd
General
Partner
Taku Land
Corp
Common
Shares
100%
2015 ALL TRTFN Corporations and Partnerships
Tlingit
Homeland
Energy
GP
Tlingit Homeland
Energy LP
(THELP)
(Hydro Expansion
Feasibility Study)
99.99 %
Class A
Units
0.01 %
Class A
Units
Common
Shares
100%
Ed Anderson Trustee
Generation for Generations
Atlin Hydro Project
Economic Development Goals
Create a Source of “Our Own Money”
Create Employment
Training & Capacity Building
Use Local Natural Resources
Environmentally Beneficial
Stop $ Leakage from Community
(this hydro project does all of the above)
TRTFN Shareholders
Atlin Tlingit Development Corporation
Fuel Construction Services
Taku Land
Corporation
Atlin Hydro Project
Atlin Power
General Partner
Xeitl Limited
Partnership
(100% of Hydro
Project)
0.01 % 99.99 %
Equipment,
Manpower,
Smaller
Elements
Transfer
Project
Management,
Hydrology,
Permitting,
Development
Financing
Sell fuel to
Project
Contractors
during
development
24 year Loan
secured by 25
year Electricity
Purchase
Agreement
Generation for Generations
Atlin Hydro Project
Background – 100 years ago
Generation for Generations
Atlin Hydro Project
Background – Recent Efforts
1980’s and 90’s – several studies for hydro on
Pine Creek (6-8 MW scenarios)
Late 1990s – TRTFN pre-feasibility study for a
small hydro project on Pine Creek (CESO).
2001 - TRTFN approached BC Hydro
2002 – TRTFN and BC Hydro agree to conduct
CEP together
2003 – Community Energy Plan (CEP) studies
wind energy and hydro on Pine Creek, demand
assessment
Generation for Generations
Atlin Hydro Project
Community
Energy
Planning
Generation for Generations
Atlin Hydro Project
The Atlin CEP
(Community Energy Plan)
Electricity Demand Assessment
20-Year Demand Projection
Energy Efficiency Recommendations
Power Supply Options Assessment:
Wind study (wind towers)
Connection to Yukon power grid (YEC)
Hydro (full pre-feasibility study, 3 scenarios)
75% of Atlinites selected small hydro
Generation for Generations
Atlin Hydro Project
Permitting
and
Licensing
Generation for Generations
Atlin Hydro Project
Permitting Agencies
1. BC Min Environment Water Stewardship Division
2. BC Ministry of Agriculture and Lands
3. Canadian Environmental Assessment Act (CEAA)
4. Taku River Tlingit First Nation
5. Department of Fisheries and Oceans
6. BC Ministry of Transportation
7. BC Ministry of Forests
8. BC Ministry of Community Services
9. Atlin Advisory Planning Commission
10. Indian & Northern Affairs
11. Transport Canada Navigable Waters
12. Ministry of Energy, Mines and Petroleum Resources
13. Environment Canada
14. Natural Resources Canada
Generation for Generations
Atlin Hydro Project
Inter-Agency Site Visit at
Surprise Lake Control Site.
Generation for Generations
Atlin Hydro Project
Environmental Impact Assessment
Project Description
Land requirements
Operation of works
Watershed
characteristics
Water availability
Market for Power
Effects on other
rights
Development
schedule
Impact Assessment
Fisheries, habitat, quality
Hydrology
Wildlife and habitat
Roads, bridges, crown
Navigable waters, forests
Existing rights – mineral
claims and other tenures
First Nation, archeology
Public, recreation, access
Hazards, flood control
Monitoring
Generation for Generations
Atlin Hydro Project
Public Consultation
AAPC involved in review process and sent all
information and referrals
Assessment Report and Appendices at Atlin
Government Agents Office for public viewing
Open Houses and Community Updates,
Prospector, Atlin Claim…
Advertising for Navigable Waters Application –
public comment
Advertising for Lands Application – public
comment and AAPC input
Ongoing Open door information policy
Generation for Generations
Atlin Hydro Project
Fisheries Field Assessment
Generation for Generations
Atlin Hydro Project
Snorkel Fish Survey
Generation for Generations
Atlin Hydro Project
Hydrology
Assessment
Generation for Generations
Atlin Hydro Project
Intake
Location
Surprise Lake
Drainage Basin
467 km2 Pine Creek
Drainage Basin
557 km2
Surprise-Pine Drainage Basin
Generation for Generations
Atlin Hydro Project
Pine Creek Discharge at INTAKE LOCATION ba se d on wa t e r she d a r e a r a t i o of WS C P i ne / S pr uc e Da t a c ol l e c t e d be l ow c onf l ue nc e
(chart ed 2004 S. Simpson)
11.91
1.074.20
0.630.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
01--01
01--13
01--25
02--06
02--18
03--02
03--14
03--26
04--07
04--19
05--01
05--13
05--25
06--06
06--18
06--30
07--12
07--24
08--05
08--17
08--29
09--10
09--22
10--04
10--16
10--28
11--09
11--21
12--03
12--15
12--27
1956 1957 1958 1959 1960 1961 1962 1963
1964 1965 1966 1967 1968 1969 1970 16y Av
1955 MAD 15%MAD
Pine Creek Discharge at Intake
Generation for Generations
Atlin Hydro Project
Streamflow Measurements near
Intake Location on Pine Creek
Generation for Generations
Atlin Hydro Project
Streamflow Measurements near
Intake Location on Pine Creek
Generation for Generations
Atlin Hydro Project
Project
Description
Generation for Generations
Atlin Hydro Project
Project Description
Project Elements (moving downstream)
1. Discharge control structure and fish
ladder at Surprise Lake bridge
2. Intake and Weir on Pine Creek
3. 48 inch Penstock-pipeline 3.9 km from
intake to powerhouse
4. Powerhouse and switch-yard near
confluence of Pine and Spruce Creeks
5. 0.8 km Powerline from powerhouse to
interconnection with existing grid
Generation for Generations
Atlin Hydro Project
Google Looking North
Powerline
Penstock
Powerhouse
Intake
Surprise Lake Control Structure
Generation for Generations
Atlin Hydro Project
Surprise Lake
Used for seasonal water storage.
Area 31 square km.
Generation for Generations
Atlin Hydro Project
Surprise Lake Outflow with
remains of historic control works
Generation for Generations
Atlin Hydro Project
CONSTRUCTION
The Atlin Hydro Project
Generation for Generations
Atlin Hydro Project
Control Structure and Fish
Ladder
Surprise Lake bridge was replaced
Worked with MoTH on design for hydro
structures within the highway right of way,
adjacent to the new bridge
Optimal that construction coincided with
planned 2007 replacement of the bridge
Flow control gate
Overflow spillway
Fish ladder bypass
Generation for Generations
Atlin Hydro Project
Improved Channel
Discharge Control
Structure
Overflow Spillway
Fish Passage
Generation for Generations
Atlin Hydro Project
Intake on Pine Creek
Concrete diversion weir for power flows
into penstock
Headpond for hourly fluctuation in
demand
Low-level weir for in-stream flow release
Overflow bypass
Minimal fisheries impacts
Generation for Generations
Atlin Hydro Project
Intake
Weir
Intake
Pipe
Intake Location
Generation for Generations
Atlin Hydro Project
Penstock Pipeline
3.95 km length
105 m gross vertical head
48’ diameter high density polyethylene
Buried 2 m deep, minimal impacts
to wildlife and human movement
Generation for Generations
Atlin Hydro Project
Powerhouse and Powerline
Located just above confluence of Pine and
Spruce Creeks
2.1 MW pelton turbine generator
Tailrace channel back into Pine Creek
Transformer and Switchyard
0.8 km of 25kV powerline connecting to
existing local grid at Surprise Lake road
Land tenures required
Will cross active mining tenures
Generation for Generations
Atlin Hydro Project
Generation for Generations
Atlin Hydro Project Developing Projects
in Small Northern
Aboriginal
Communities
Generation for Generations
Atlin Hydro Project
Challenges in a Small Northern
Aboriginal Community
Atlin: No municipal or regional
government (unincorporated)
Limited attention from BC government
Limited local services & O/M budgets
Implication: Many community services &
projects must be initiated by TRTFN or
their development corporations, as there
is no other organization who can (ie.
potable water, waste water, land use
planning, community services, renewable
electricity supply…)
Generation for Generations
Atlin Hydro Project
Challenges in Small a Northern
Aboriginal Community
Limited financial and human resource
capacity
Same people wear many hats
Each new project has it’s own specific
learning curve
Employee & volunteer burn-out is a
concern and affects projects
High costs to bring in technical
expertise
Generation for Generations
Atlin Hydro Project
Challenges in Small a Northern
Aboriginal Community
Lack of investment equity available
within the First Nation, or in Atlin
Reliance on building “in-kind” equity
to leverage financial resources
Reliance on government assistance
during development of projects
IT DOESN’T MATTER - YOU STILL
CAN DO IT!
Generation for Generations
Atlin Hydro Project
BENEFITS in Small Northern
Aboriginal Communities
More of a focus regarding climate
change in northern communities
Assistance is available Governments
Human resource capacity is forced
to develop to fill void in manpower
and services
We can learn from each other
Generation for Generations
Atlin Hydro Project
Project Timeline
Project Milestones Completion date
Public Consultation & Information (ongoing)
Completion of Strategic Plan 2001
Approached BC Hydro to initiate CEP 2002
Community Energy Planning Project 2003
Applied for Water Licence - LWBC 2004
Secure Development Financing 2004-2008
Project Permitting Studies 2005
Developed Proposal to BC Hydro 2005
Negotiated EPA with BC Hydro 2005
Submitted Final Development Plan & EA 2006
Financing 2006/08
Final Design and Tenders 2006
Environmental Approvals, Permitting 2006
Construction 2006-2008
Operation 2009 April 1st
Generation for Generations
Atlin Hydro Project
Major Tasks
Risk Management
Schedule Updates
Costing and Cost Control
Budget and Cost Management
Insurance
Project Manager Training
Financial Advice
Legal Company Structure
Bridge Financing
Filing and Record Keeping
Tendering and Sourcing
Coordination of Procurement & Construction
Generation for Generations
Atlin Hydro Project
Lessons Learned
Research the requirements of the entire
development process way ahead of time.
Use all available handbooks, guides, websites
and previous reports.
Talk to regulators early. (Try to) nail them down
regarding your permitting requirements and
process.
Have an Inter-Agency meeting.
Develop a detailed multi year plan, with critical
milestone dates identified.
Talk to others who have done it. Learn from
them. Engage them to help you.
Generation for Generations
Atlin Hydro Project
Lessons Learned
Even though you think you have hired the
best, get a second opinion occasionally.
Our project design changed a few times as we
eliminated un-necessary features.
We didn’t push hard enough for the technical
support available from NRCan…
Continually double-check your important
assumptions, many of them change as the
project evolves.
Even “good” engineers can miss important
things that can seriously increase costs.
Generation for Generations
Atlin Hydro Project
Financing the Project
Look past the banks for long term money.
Hire a financial advisor with familiarity negotiating
loans for large projects.
Realize your lender will require ENORMOUS
security and will own your project until the loans
are paid off.
Do not underestimate the legal side of borrowing
large amounts. The paperwork is incredibly
complex and onerous.
Don’t forget about loan conversion and follow-up
Find bridge financing early to cover grants
approved but not yet received
Generation for Generations
Atlin Hydro Project
Financing the Project
We borrowed long term money (1 year less than
EPA = 25 year EPA, 24 year loan)
Financial crash occurred just when we needed
money AND construction prices increased
Shadow bid for one contract was $3.0 - $3.5M
Actual bids next spring were . . . . More,
waaaaayyyy more, things can and do change during
project development (both up and down)
We needed more money and Ecotrust stepped up,
later they were replaced by the Regeneration Fund
That money was expensive! Prime plus a % that
was more than any mortgage in the last 20 years
Generation for Generations
Atlin Hydro Project
Financing the Project
The extra money we needed was very expensive but
we needed it to make the project work and had no
where else to go so we accepted high rates
The First Nations Financial Authority was not
operational at that time
When FNFA came on line TRTFN worked hard to
use FNFA money to buy out the expensive sub debt
We were able to meet FNFA/FMB requirements with
internal forces and then had legal review done
We bought out the expensive sub debt with FNFA
financing
On $2M we saved over $100k per year!!!!
100k annually that now stays in Sunny Atlin!!
Generation for Generations
Atlin Hydro Project
Lessons Learned
You can do much of the development work in
house (supervised by professionals if needed).
1. TRTFN provided fisheries and wildlife expertise for
the biological impacts assessment.
2. Rather than hire a company to do it all, we hired
them to train our people to do all the hydrology
work.
3. Other areas we did in-house: Project Management,
Administration, Technical Reporting, Field Recon,
Preliminary Mapping, Photography….
This helps increase owner equity, provides local
employment, and builds HR capacity.
Generation for Generations
Atlin Hydro Project
Lessons Learned
The owner must plan for:
multi-year dedicated commitment of resources.
Continuity of FN Leadership support
Multi year project champion (project team,
coordinator or manager).
Getting community support and involvement.
Appropriate technical support to address
knowledge gaps.
Cost of financing, to get it, and interest rates to be
paid long term, and how those costs marry to
project revenues (PF surcharge)
Need to learn and understand long term financing
Generation for Generations
Atlin Hydro Project
Contact Information:
Peter Kirby
President & CEO
Phone: 250 651 2221
Email: [email protected]
Xeitl Limited Partnership
Box 408, Atlin BC, V0W1A0