Gustavus Electric Company P.O.

Box 102 Gustavus Alaska 99826 (907) 697-2299 fax (907) 697-2355
TO: Pat Regan - Regional Engineer Office of Energy Projects - FERC Division of Dam Safety and Inspection Portland Regional Office 101 Southwest Main Street - Suite 905 Portland, Oregon 97204 SUBJECT: September 2007 Monthly Report for the Falls Creek Hydro-electric Project FERC # P-11659 DATE SUBMITTED: 10/20/07 DISTRIBUTION LIST:
Project Personnel Richard Levitt Steve Manchester Bob Christensen Recipients Ron Wright Jim Ferguson Sean Johnson Doug Jenkins Richard Enriquez Tomie Lee Jackie Timothy Brady Scott Joe Donahue Kathy Prentki Johanna Dybdal Tom Mills Sr. (Care of Wanda Culp) FERC ADF&G ADF&G USDARUS USFWS NPS DNR DNR DNR Denali Commission HIA Neighboring Land Owner Position Project Manager Construction Superintendent Environmental Compliance Agency Contact E-mail richardlevitt@cs.com sjm1@localaccess.com bob@critterweb.org Contact E-mail ron.wright@ferc.gov jim_ferguson@fishgame.state.ak.us shawn_johnson@fishgame.state.ak.us doug.jenkins@wdc.usda.gov richard_enriquez@fws.gov tomie_lee@nps.gov jackie.timothy@alaska.gov brady.scott@alaska.gov joe.donohue@alaska.gov KPrentki@denali.gov jdybdahl@hiatribe.org kashudoha07@hotmail.com

Dear Mr. Regan, Please find enclosed the Monthly Construction Report for the Falls Creek Hydroelectric Project, FERC # P-11659. Gustavus Electric Company (GEC), as the licensee for the above project, submits this report. Sincerely, Richard Levitt GEC President

Contact Richard Levitt (richardlevitt@cs.com) to add names to distribution list.

Falls Creek Hydroelectric Project (P-11659) MONTHLY CONSTRUCTION REPORT TO FERC September 2007 1) Progress of Work - PM This month work continued on the intake/diversion structure and the installation/backfill of the HDPE penstock. Further work was done on the interconnecting powerline. Some progress was made on erosion and sediment control work along the intake road. 2) Status of Construction - PM During the first week of the month, 2,500 feet of interconnecting transmission line was installed along the side of the access road. In conjunction with the transmission line work, some of the roadsides were sloped to final grade and progress was made on rocklining uphill side ditches.

Sloping along the lower portions of the access road where the transmission line is buried.

The powerhouse road in the area of the clearcut gravel pit was relocated to the east along the east edge of the pit. This is the route of the original plan for the road. The road was relocated so that more area of the gravel pit would be available for material extraction. More material has been needed as the bedding and backfill for the penstock than was anticipated. The material is also being used as bedding and backfill for the powerline. HDPE penstock was installed from station 27+00 to station 41+00 this month. An additional 300 feet of 30 HDPE was installed in excess of what was called for in the original plan. This is because of additional total length of the penstock due to a proposed rerouting of the steel portion of the penstock just above the powerhouse. A revised plan for the steel penstock should be submitted to FERC for approval by mid October. The HDPE penstock was backfilled as it was installed. Material for the bedding and backfill was verified by the Project Manager as coming from an area of the material pit that meets the bedding and backfill specification. Two gradation tests were done on this material to reassure the project manager that visual inspection of the material was satisfactory to meet specification. The results of these tests are on file at GECs office in Gustavus. Assurance of compaction of the bedding and backfill to meet specifications was done by visually assuring that compaction took place and using the soil probe test method as per the specifications. On September 12, approval was received from FERC to proceed with the construction of the intake structure/diversion. The 4 foot wide base for the

Transmission line ditched alongside the access road near the state line.

Placement of newly welded HDPE penstock.

Panoramic view of the phase 2 work area at the intake as it looked on September 21.
upper retaining wall was poured on the 13th. The 6 foot wide base for the 10 foot high lower retaining wall was poured the following week. The 6 foot wide footing for the left abutment wall was poured on the 27th. Along the line of the retaining wall, eight epoxy coated #7 rebars, each 5 long and approximately 5 apart, were epoxy grouted into 2 foot deep drilled holes. These rebar anchors were not tested for pullout strength because they were not called for in the plans, but were installed at the direction of the project manager as an extra. All of the wall bases were poured on bare, competent rock. A 4 foot wide base was poured for the membrane wall as an extra, as that was not called for in the plans. The retaining wall went into the creek bank a distance such that the concrete membrane wall was on rock at an elevation of the water at its maximum operating level.. Two anchors were epoxy grouted into the rock for the spillway base 1 foot down from the diversion axis, as called for in the plans. Leveling concrete was poured over the rock seven days before drilling holes for the anchors. The plans call for 17 of these anchors, but attempts to drill several other holes were not successful. The rock would fracture at the rock/ concrete interface and would not allow the rebar to past that point into the hole. Two feet further down stream the rock is in excellent condition, and holes will be drilled along that line for anchors, which will have a higher pullout force requirement. The specifications call for anchors to be tested to 3,000 lb if 1 foot downstream of the diversion axis. The two anchors successfully installed tested the next day to 6,000 lb and 4,000 lb respectfully (not tested to failure). The anchors were in 1 inch holes drilled 40 deep. Anchors will be drilled to 40 to assure they are 30 into competent rock, as called for in the specifications. In October, the remaining anchors will be drilled and tested to the required pullout strength, including at least one to failure. All tests are being documented with photographs.

This shot shows the completed 4 and 6 foot bases with wall form-work in progress above.

Early efforts to build the form for the wall base.

A couple higher precipitation events raised the creek to a piont that threatened the integrity of the cofferdam. The cofferdam was improved to compensate.

No work was done on the tailrace or in the powerhouse area this month. There were no inspections of the project this month by FERC or any resource agencies. 3) Construction Difficulties - PM The additional length of 30 HDPE put the reducer for connecting the 30 pipe to the 28 pipe in a curve of the pipe rather than a straight section. This stressed the reducer more than expected, so the reducer will be encased in concrete. There were some minor equipment breakdowns this month which necessitated moving Too much stress on this reducer damaged the connecfrom one phases of the job to another and then tion. This joint will now be encased in a concrete block. back. Repair parts came quickly and the difficulties were minor. 5) Critical Events and Dates - PM There were no critical events this month. 8) Sources of Major Construction Material - PM All work done this month used material that has been described in previous reports. 9) Materials Testing and Results - PM All backfill material used this month was verified by the project manager as having been screened to remove all 1 inch plus material. Compaction of the backfill was tested using the using the soil probe method as specified. Two gradation tests were conducted on Bedding and backfill material to assure that areas of the material pit being used meet the specification. All material met the specifications. Areas of the pit that have too much fine material can be readily identified and used as fill elsewhere instead of being screened for bedding or backfill. Results of these tests are on file at Gustavus Electric Co. There were three concrete pours during September. All three were for the base or footing for the left side retaining wall and abutment wall. Cylinders were cast for each pour to be broken by R & M engineering in Juneau, AK. The results of all concrete testing are attached to this report. The result of all concrete test breaks to date, including the initial test batch, show a compressive strength at approximately 7 days of 4440 psi to 4990 psi; and at 28 days, a strength of 5160 psi to 6560 psi. The specifications call for a minimum strength of 3000 psi. GEC will continue to use the same mix design to assure the concrete strength is well above specification. Entrained air and slump tests were conducted on each batch, and all were within specification. Air entrainment agent was added to the mix each time to get the entrained air within specification. It was verified that each footing pour was made on bare clean rock and that all rebar meet the specifications. All construction joints were installed according to plan. Detailed photographs were taken before each concrete pour.

11) Photographs - ECM Ten photo vantage points have been established throughout the project area to document the progress of construction (see Appendix 1). No visible changes occured except at photo sites 7, 9, and 10. Precise locations of photos were changed in some locations to better display the new work. 12) Environmental Compliance Issues - ECM Bob Christensen was on vacation during the month of September. ECM duties were filled by Greg Streveler. This months ECM report will be abbreviated for this reason. Short-term pulses of high turbidity occured a few times as a result of phase 2 intake operations although recorded turbidiitys were within acceptable parameters. In general, the construction crew did an excellent job of controlling sedimentation during phase 2 operations at the intake. The foot print at the gravel pit expanded a bit as a result of moving the powerhouse road to the eastern side of the clearing. Efforts will be made to work with the Project Manager to insure that further impacts to important forest habitats in this area are kept to an absolute minimum. 13) Compliance Issues in Need of Immediate Attention - ECM Some minor progress was made this month on issues noted in previous reports. In particular: Checkdams were installed at pit 2 as a temporary erosion control measure until final work is done in this area. A culvert near the horse-shoe cut was cleared. Locations for culverts between the Stripfen Y and gravel pit were identified and one
culvert was installed.

This cofferdam within a cofferdam was useful in controlling sedimentation of the creek.

Check dams being installed at pit 2 as a temporary sediment and erosion control measure.

14) Wildlife Activity - ECM A large black bear has been seen numerous times along the access road. This bear has shown very little fear of people. Another black bear has been spotted at the intake and birdfoot canyon. No moose sign observed this month. A goshawk was seen near the Y.

Photo taken from previous road location at the gravel pit. Note new road position in far left of photo.

15) Biotic Monitoring - ECM Salmon foot counts continued throughout the month. The peak pink salmon numbers observed for the year came during the first week of the month at 1,169. The first cohos (very small numbers) showed up during the very end of the month. Some newly placed gravels in the engineered logjam area were lost downstream during higher flows. These gravels will be replaced next year along with already scheduled gravel bed work and minor modifications to the woody structures next year. The following sections are not yet applicable to the date of this report: 4) Contract Status 6) Reservoir Filling 7) Foundations 10) Instrumentation

APPENDIx 1: SEPTEMBER 2007 PHOTOS FROM vANTAgE POINTS

APPENDIx 2: qUALITY CONTROL ATTACHMENTS