HomeMy WebLinkAbout02242025 City Council Work Session Laydown - UtilitySeward Electric
System
City of Seward City Council Infrastructure
Project Update February 24, 2025
1
Electrical
Infrastructure
Project
Objectives
Scope
Project Schedule
Status, Estimates, Costs to Date
Required Additional Funding
Questions
2
Objectives
3
Address
Address Safety Issues
•Replace inadequate ground grids
•Replace compromised
structures
•Improved operator situational
awareness
Replace
Replace equipment which
is at the end of its useful
life
•Aged and ineffective
transformation, protection, and
metering equipment
Upgrade
Upgrade voltage from 69kV
to 115kV
•Lower losses
•Improved emergency response
through increased Railbelt
interoperability
•Increased capacity for future
load growth
•Integration with Shore Power and
Battery Energy Storage (BESS)
Scope-Nash Road and Fort Raymond-
Seward Highway
O.H Conversion
•Replace structures
•Reconductor transmission
circuit
•Reconductor distribution
under-build
•Add Air-break Switch Nash
Road and Seward Highway
4
Scope-Fort
Raymond Substation
Conversion
Upgrade ground
grid and fencing
•To meet current
National
Electrical Safety
Code (NESC)
01
Improve control
and protective
selectivity
•Replace end of life
control and
protection
•Add 115kV circuit
breaker
02
Upgrade power
transformers
03
Upgrade feeder
breakers
04
Improve
operator
situational
awareness
05
5
Scope-Lawing
Substation
Conversion
Replace ground grid and fencing
•To meet current National Electrical Safety Code (NESC)Replace
Improve control and protective selectivity
•Replace end of life control and protectionImprove
Upgrade power transformers
Convert from 69 kV to 115 kVPower
Add remotely operated load break tap switch Add
Improve operator situational awarenessImprove
6
Scope-Spring
Creek Substation
Conversion
Replace
Replace
ground grid
and fencing
•To meet
current
National
Electrical
Safety Code
(NESC)
Improve
Improve
control and
protective
selectivity
•Replace end
of life
control and
protection
Power
Upgrade
power
transformers
Convert from
69kV to 115kV
Improve
Improve
operator
situational
awareness
7
Scope-Cruise
Ship Shore Power
115 kV line from Fort
Raymond to Cruise
ship dock via AKRR
New 115 kV -12.5 kV
substation north side
of Ship Avenue AKRR
2-feeder breakers to
cruise ship dock
12MW 2-hour Battery
Energy Storage System
(BESS)
8
Advanced Metering
Infrastructure (AMI)
9
Enhanced Data Visibility:
AMI provides real-time or near-real-time data on energy usage, allowing utilities to monitor
consumption patterns, quickly detect anomalies, and improve load forecasting.
Accurate Billing:
With detailed usage data, billing becomes more accurate. Time-of-use rates can be
implemented, ensuring customers are charged based on actual consumption patterns.
Operational Efficiency:
Automated meter readings reduce the need for manual visits, lowering labor costs and
minimizing errors. Remote connect/disconnect capabilities also streamline customer
service and maintenance.
Improved Outage Management:
The system can quickly identify and locate outages, helping utilities to respond faster and
reduce downtime for customers.
Enhanced Grid Reliability:
Better data enables proactive grid management and more efficient integration of
renewable energy sources, supporting a more stable and resilient electrical grid.
Customer Empowerment:
Access to detailed consumption data allows customers to make informed decisions about
their energy use, potentially leading to cost savings and more sustainable practices.
Project Schedule
10
Infrastructure Project -Financial
Overview Budget and Status 11
Project sub component 2022 Estimate 2025 Actual/Estimate Status 2022 Est. To 2025 Actual/Estimate
Nash Road Phase 1 4,568,969$ 4,140,254$ Complete 91%
Nash Road Phase 2*1,285,724$ 2,447,011$ 95% Design Bid Package Complete 190%
Seward Highway 619,565$ 619,565$ Complete 100%
Fort Raymond 7,165,582$ 6,776,525$ Complete 95%
Lawing 3,272,727$ 3,500,000$ At 25% Design Rev. includes 10% Infl- contingency 107%
Spring creek 3,960,419$ 4,356,461$ At 10% Design Rev. includes 10% Infl- contingenc 110%
Shore Power**1,436,000$ -$ Feasibility Design- Clean Ports Grant Grant and CIAC funded
AMI -$ 1,200,000$ Budgetary quote New Project
Total 22,308,986$ 23,039,816$ 103%
Current Funding 14,290,726$
Required Additional Funding 8,749,090$
* Final design required significanly more pole replacements than preliminary design
** Shore power estimate (electrical infrastrucuture +BESS) is ~ $30M; however, EPA grant and Seward Co. contribution will cover 100%
Funding plan
12
Bond for remaining project costs:
•Initial bond request in March 2022 was for $19.5 million
•Resolution 2022-023 was amended by Council and approved bond for
$10 million in order to break the project into parts, to move forward
efficiently and ensure that the amounts bonded would cover project. We
are now at the next phase in the project.
•Current remaining balance on the project is $8,749,090 with the
inclusion of AMI metering project
•No rate increase required
Funding plan
13
Bond Assumptions:
•20-year term
•$10 million (project cost + reserve amount to be held)
•Issued through Alaska Municipal Bond Bank
•Rates as of 2/13/25 are 3.9% with a .25% cushion
Funding plan
14
Additional Considerations
•Internal Loan from General Fund Investments
•Typically we would do a 12.5% interest rate for an internal loan this high, since we
would have to liquidate and drawn down from the city’s investments
•Not our recommendation since its more fiscally responsible to preserve the value
and security of investments as it is the basis of our fiscal health as a municipality
Questions?
15