COMMISSION 
AGENDA MEMORANDUM                Item No.       4h 
ACTION ITEM                   Date of Meeting    December 12, 2017 
DATE:    November 29, 2017 
TO:     Dave Soike, Interim Executive Director 
FROM:   Wayne Grotheer, Director Aviation Project Management 
Jeffrey Brown, Director Aviation Facilities and Capital Programs 
SUBJECT:  Alternate Utility Facility  Utility Services (CIP #C800538) 
Amount of this request:                $0 
Total estimated project cost:      $37,200,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to amend and increase the Notto-Exceed
amount of the Puget Sound Energy (PSE) Engineering Services and Construction
Agreement (ESCA) required for the Alternative Utility Facility (AUF) from $250,000 to $850,000. 
EXECUTIVE SUMMARY 
The funding associated with this agreement is within the current authorized project budget.
There is no new funding associated with this request. 
To support the AUF project PSE must relocate the existing power delivery point of service along
with associated metering and protective relaying. In addition, PSE must perform modeling and
engineering analysis to incorporate any potential impact the new AUF will have on the PSE
transmission system. The initial ESCA with PSE was for $250,000 and was utilized to perform
initial engineering analysis and develop the associated design. This amendment to the ESCA will
permit PSE to perform the installation and construction work. 
The project will provide an enclosed, dual fuel, standby power facility that is functionally
complete, fully integrated, and capable of supplying 30 megawatts (MW) of power to the
airport and supporting facilities. This wattage will meet 100 percent of the Airport's peak
electrical demand over the existing power distribution system. Upon the unexpected loss of
normal utility power, the standby power facility will provide stable emergency power to the
Airport. The standby power facility will have sufficient fuel storage capacity to operate the
Airport continuously for up to 24 hours with ability to use aviation fuel as a backup source
should diesel fuel become unavailable.


Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. _4h___                    Page 2 of 4 
Meeting Date: December 12, 2017 
JUSTIFICATION 
During a utility power outage, the Airport is unable to operate. An extended loss of utility
power at the Airport halts the Port's, airlines' and tenants' ability to utilize the Airport. Loss of
electrical power shuts down airline and concession electronic communications, jet bridge
operations, flight information displays, ticket printers, security checkpoints, electric ground
support equipment (eGSE) chargers, baggage conveyors, lighting for legal occupancy within the
terminal, heating/cooling systems, and other functions. The continued reliable operation of
Sea-Tac Airport is vital to meeting the needs of the region and the airlines. 
The Alternate Utility Facility (AUF) is providing a separate power source to the airport's south
connection point to the utility transmission grid. The design and construction of the AUF has
required PSE to modify their interconnection equipment and to study the effects on their
transmission network. This work is cost reimbursable to PSE and is governed by a project
specific utility agreement. After initial work PSE has estimated that their efforts willcost more 
than is allowed in the current Not-To-Exceed agreement. 
DETAILS 
Scope of Work for the Amendment 
(1)   Relocate PSE Point of Service #1 and #2 and associated ancillary equipment. 
(2)   Study impact of AUF on PSE transmission system. 
Schedule 
Activity 
Construction start                    2017 Quarter 1 
In-use date                        2018 Quarter 2 

ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do not increase the Not-To-Exceed amount of the ESCA 
Cost Implications: $30,000,000 Expensed (Asset will be delivered, but will be unusable) 
Pros: 
(1)   None. 
Cons: 
(1)   PSE crews will be unable to complete their work installing, testing, and commissioning 
necessary PSE facilities and assets. 
(2)   AUF project will not be able to interface with PSE facilities rendering the AUF facility
unusable. 
This is not the recommended alternative. 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. _4h___                    Page 3 of 4 
Meeting Date: December 12, 2017 
Alternative 2  Increase the Not-To-Exceed amount of the ESCA 
Cost Implications: No Additional Costs 
Pros: 
(1)   AUF Project will complete and come online in Q2 2018. 
Cons: 
(1)    None 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary          Capital      Expense        Total 
COST ESTIMATE 
Original estimate                      $36,400,000      $800,000   $37,200,000 
Revised estimate                     $36,235,000     $965,000   $37,200,000 
AUTHORIZATION 
Previous authorizations                 $36,235,000      $965,000   $37,200,000 
Current request for authorization                  0           0           0 
Total authorizations, including this request    $36,235,000      $965,000   $37,200,000 
Remaining amount to be authorized             $0         $0         $0 
Budget Status and Source of Funds 
This project, C800538, was included in the 2018-2022 capital budget and plan of finance. The
funding sources will include the Airport Development Fund, 2015 and 2017 revenue bonds.
This project will be incorporated into the Airport's electrical utility, so both capital and
operating costs will be recovered through an internal utility charge allocated to the terminal.
The costs therefore show up as operating costs.
Financial Analysis and Summary 
CIP Category                     Renewal/Replacement 
Project Type                     Infrastructure Upgrade 
Risk adjusted discount rate            N/A 
Key risk factors                     N/A 
Project cost for analysis               $37,200,000 
Business Unit (BU)                 Electric Utility (allocate to Terminal Building) 
Effect on business performance        NOI after depreciation will increase 
IRR/NPV                     N/A 
CPE Impact                     0.08 in 2018 


Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. _4h___                    Page 4 of 4 
Meeting Date: December 12, 2017 
Lifecycle Cost and Savings 
The design life of the project is 30 years or more. Operations and Maintenance (O&M) costs of
the recommended alternative will be approximately $125,000/year to include: periodic
maintenance, testing, air permitting requirements, fuel, and training. It is anticipated that the
system will need to be run once a week or 50 hours a year for maintenance and testing
purposes. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
August 4, 2015  The Commission authorized procurement and construction for
$37,200,000 (item 6b). 
December 9, 2014  The Commission was briefed (item 7c). 












Template revised September 22, 2016; format updates October 19, 2016.