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Home My WebLink AboutS Intertie report 6-2001 —— CHUGA... POWERING ALASKA’S FUTURE June 29, 2001 — Mr. Robert Poe eee Executive Director Alaska Industrial Development and Export Authority 480 West Tudor Road Anchorage, Alaska 99503-6690 Subject: Southern Intertie Monthly Report for June 2001 W.0.#E9590081 Dear Mr. Poe: Enclosed is 1 (one) copy of the Southern Intertie Report for June 2001. If there are any questions, please contact Dora Gropp, (907) 762-4626. rane Syomnstad General Manager Sincerely, Enclosures: 1 (one) copy of Southern Intertie Monthly Report (ce Lee Thibert Michael Massin ,,/,, Dora Pp Jim Bordén Mike Cunningham Don Edwards Tom Lovas W.0.#E9590081, Sec., 2.1.3 RF CHUGACH ELECTRIC ASSOCIATION, INC. Anchorage, Alaska SOUTHERN INTERTIE Phase IC - EIS MONTHLY REPORT for June 2001 5601 Minnesota Drive / 99518 P.O. Box 196300 Anchorage, Alaska 99519-6300 I. Il. Il. IV. VI. TABLE OF CONTENTS SUMMARY Includes Section II, Southern Intertie Transactions Allocations FINANCIAL 1. Chugach Statement for May 2001 2. Activity Summary of May 2001 3. Transactions, Inception through May 2001 4. Bank Account Activity Summary of May 2001 SCHEDULE 1. Project Schedule ITEMS FOR APPROVAL None ITEMS FOR DISCUSSION None ITEMS FOR INFORMATION 1. Power Engineers Monthly Report dated June 18, 2001 2. Chugach Electric Assoc., Inc. State Financial Assistance Reports, Year Ended December 31, 2000 I. SUMMARY RUS, USFWS and COE held meetings in Anchorage on June 19 and 20 to review the draft of the Preliminary Draft Environmental Impact Statement (PDEIS). Agency staff has requested more time to review the next draft before it is published and release of the DEIS to the public is now anticipated by the end of September 2001. The cost share agreement of December 2000 is taking effect with this month’s report. Detailed cost break outs are included in Section IL. Expenditures for Phase IC (EIS) of the project stand as follows: DESCRIPTION POWER |COE/USFWS/| CHUGACH | TOTAL ENGINEERS | __ RUS ORIG. BUDGET $389,547 $160,000 $100,000 $649,547 ALLOCATED $0 i) $0 $0 CONTINGENCY TOTAL $389,547 $160,000 $100,000 $649,547 AMENDMENTS $731,264 $50,000 $150,000 $931,264 TOTAL $1,120,811 $210,000 $250,000] $1,580,811 COMMITMENT SPENT TO DATE $679,619 $151,289 $106,396 $937,304 % OF TOTAL 61% 72% 43% 59% Total Project expenditures as of 06/18/01 are $6,041,604 SECTION II — Southern Intertie Transactions Allocations CHUGACH ELECTRIC ASSOCIATION, INC. Southem Intertie Transactions Allocations Inception Through May 31, 2001 Inception through 12/31/00 AIDEA Grant 100% 5,747,986.66 AIDEA Grant 75% - CEA 8.8075% = Seward 0.4195% - GVEA 5.8587% - HEA 3.3795% - AML&P 6.5348% $ 5,747,986.66 Year to Date Through Total Through 5/1/01 5/1/01 70,768.97 5,818,755.63 Month Ended Inception. 5/31/01 Through 5/31/01 81,244.37 5,900,000.00 42,027.05 42,027.05 4,935.38 4,935.38 235.07 235.07 3,282.98 3,282.98 1,893.74 1,893.74 3,661.84 3,661.84 $ 5,818,755.63 _$ 137,280.43 $ 5,956,036.06 6/26/01 00-01Sinterti CHUGACH ELECTRIC ASSOCIATION, INC. Anchorage, Alaska 06/18/01 TO: Dora Gropp, Manager, Transmission & Special Projects FROM: A Debra Williams, Plant Accountant es SUBJECT: Invoice for Your Review - Southern Intertie Attached is a draft invoice and and supporting documents for the billing of City of Seward's supporting documents for share of allocated costs for the Southern Intertie, Work Order E9590081, for the period May 1, 2001 to May 31, 2001. Work Order: E9590081 Amount of Current Invoice: $235.07 For Time Period: 05/01/01 to 05/31/01 Please review the entire invoice package and indicate your concurrence below, that these charges are correct for this work order and time period. If you want to delete or change the invoice in any manner, please provide appropriate documentation. Return the invoice package to me by : 06/25/01 Concur: Gora x yp 6 CSOs re D Signat te Attachments Chugach Draft Invoice . SEWARD 0501 Dave Calvert City of Seward P. O. Box 167 Seward, Alaska 99664 Past Due: 28-Jul-01 Date Invoice Acct. No. Folio 06/28/01 Draft 14300 000 00 2101 To invoice you for City of Seward's share of allocated costs for the Southern Intertie, Work Order E9590081, for the period May 1, 2001 to May 31, 2001. Direct Labor Indirect Labor Power Engineers Inv. #82802 Power Engineers Inv. #83694 Sub-Total General, Administrative & Construction Overhead (0.5%) Total Charges AIDEA Original 100% Grant Amount To Be Split by Alaska Utilities 137,280.43 City of Seward's Share Amount Due From City of Seward Attachments To ensure proper credit, please return a copy of this invoice with your payment. 18620 000 15 2101/ E9590081 (SWD) maint&sve.xls 81,244.37 56,036.06 25% Share 0.4195 % 1,850.93 905.20 53,150.50 80,690.81 $136,597.44 682.99 $137,280.43 $235.07 CHUGACH ELECTRIC ASSOCIATION, INC. Anchorage, Alaska 06/18/01 TO: Dora Gropp, Manager, Transmission & Special Projects FROM: Ox Debra Williams, Plant Accountant e) SUBJECT: Invoice for Your Review - Southern Intertie Attached is a draft invoice and and supporting documents for the billing of Golden Valley Electric Association's supporting documents for share of allocated costs for the Southern Intertie, Work Order E9590081, for the period May 1, 2001 to May 31, 2001. Work Order: E9590081 Amount of Current Invoice: $3,282.98 For Time Period: 05/01/01 to 05/31/01 Please review the entire invoice package and indicate your concurrence below, that these charges are correct for this work order and time period. If you want to delete or change the invoice in any manner, please provide appropriate documentation. Return the invoice package to me by : 06/25/01 Concur: vo. x. fp C1 3for SignatuTre Date ” Attachments Chugach Draft Invoice GVEA 0501 Steve Haagenster Date 06/28/01 Golden Valley Electric Association P. O. Box 71249 Invoice Draft Fairbanks, Alaska 99707 Acct. No. 14300 000 00 2101 Past Due: 28-Jul-01 Folio To invoice you for Golden Valley Electric Association's share of allocated costs for the Southern Intertie, Work Order E9590081, for the period May 1, 2001 to May 31, 2001. Direct Labor 1,850.93 Indirect Labor 905.20 Power Engineers Inv. #82802 53,150.50 Power Engineers Inv. #83694 80,690.81 Sub-Total $136,597.44 General, Administrative & Construction Overhead (0.5%) $ 682.99 Total Charges $137,280.43 AIDEA Original 100% Grant 81,244.37 Amount To Be Split by Alaska Utilities 56,036.06 25% Share 137,280.43 GVEA's Share 5.8587 % Amount Due From Golden Valley Electric Association $3,282.98 Attachments To ensure proper credit, please return a copy of this invoice with your payment. 18620 000 15 2101/ E9590081 (GVEA) maint&svc.xls CHUGACH ELECTRIC ASSOCIATION, INC. Anchorage, Alaska 06/18/01 TO: Dora Gropp, Manager, Transmission & Special Projects FROM: AyrDebra Williams, Plant Accountant oF SUBJECT: Invoice for Your Review - Southern Intertie Attached is a draft invoice and and supporting documents for the billing of Homer Electric's supporting documents for share of allocated costs for the Southern Intertie, Work Order E9590081, for the period May 1, 2001 to May 31, 2001. Work Order: E9590081 Amount of Current Invoice: $1,893.74 For Time Period: 05/01/01 to 05/31/01 Please review the entire invoice package and indicate your concurrence below, that these charges are correct for this work order and time period. If you want to delete or change the invoice in any manner, please provide appropriate documentation. Return the invoice package to me by : 06/25/01 Concur: Awe, ie LY CS Yfe/ Signature Date Attachments Chugach Draft Invoice HEA 0501 Don Stead Date 06/28/01 Homer Electric Association 3977 Lake Street Invoice Draft Homer, Alaska 99603 Acct. No. 14300 000 00 2101 Past Due: 28-Jul-01 Folio To invoice you for Homer Electric Association's share of allocated costs for the Southern Intertie, Work Order E9590081, for the period May 1, 2001 to May 31, 2001. Direct Labor 1,850.93 Indirect Labor 905.20 Power Engineers Inv. #82802 53,150.50 Power Engineers Inv. #83694 80,690.81 Sub-Total $136,597.44 General, Administrative & Construction Overhead (0.5%) $ 682.99 Total Charges $137,280.43 AIDEA Original 100% Grant 81,244.37 Amount To Be Split by Alaska Utilities 56,036.06 25% Share 137,280.43 HEA's Share 3.3795 % Amount Due From Homer Electric Association $1,893.74 Attachments To ensure proper credit, please return a copy of this invoice with your payment. 18620 000 15 2101/ E9590081 (HEA) maint&svc.xls CHUGACH ELECTRIC ASSOCIATION, INC. Anchorage, Alaska 06/18/01 TO: Dora Gropp, Manager, Transmission & Special Projects FROM: dXyrDebra Williams, Plant Accountant aa 4 SUBJECT: Invoice for Your Review - Southern Intertie Attached is a draft invoice and and supporting documents for the billing of Anchorage Municipal Light and Power's supporting documents for share of allocated costs for the Southern Intertie, Work Order E9590081, for the period May 1, 2001 to May 31, 2001. Work Order: E9590081 Amount of Current Invoice: $3,661.84 For Time Period: 05/01/01 to 05/31/01 Please review the entire invoice package and indicate your concurrence below, that these charges are correct for this work order and time period. If you want to delete or change the invoice in any manner, please provide appropriate documentation. Return the invoice package to me by : 06/25/01 Concur: Be ce Pup bL(Yor Signature ate Attachments Chugach Draft Invoice AML&P 0501 Mike Kiech : Date 06/28/01 Anchorage Municipal Light & Power 1200 East First Avenue Invoice Draft Anchorage, Alaska 99501-1685 Acct. No. 14300 000 00 2101 Past Due: 28-Jul-01 Folio To invoice you for Anchorage Municipal Light & Power's share of allocated costs for the the Southern Intertie, Work Order E9590081, for the period May 1, 2001 to May 31, 2001. Direct Labor 1,850.93 Indirect Labor 905.20 Power Engineers Inv. #82802 53,150.50 Power Engineers Inv. #83694 80,690.81 Sub-Total $136,597.44 General, Administrative & Construction Overhead (0.5%) $ 682.99 Total Charges $137,280.43 AIDEA Original 100% Grant 81,244.37 Amount To Be Split by Alaska Utilities 56,036.06 25% Share 137,280.43 AML&P's Share 6.5348 % Amount Due From Anchorage Municipal Light & Power $3,661.84 Attachments To ensure proper credit, please return a copy of this invoice with your payment. 18620 000 15 2101/ E9590081 (AML&P) maint&svc.xls Il. FINANCIAL 1. Chugach Statement for May 2001 2. Activity Summary of May 2001 3. Transactions, Inception through May 2001 4. Bank Account Activity Summary of May 2001 CHUGACH ELECTRIC ASSOCIATION, INC. Anchorage, Alaska 06/18/01 10: Dora Gropp - Manager, Transmission & Special Projects FROM: (- Debra Williams, Plant Accountant SUBJECT: E9590081 - Southern Intertie Route Selection Study You had previously requested establishment of this work order to study route selection for the Southern Intertie for the Intertie Participants Group. The Association will be reimbursed for charges to this work order. The following charges occurred during May 2001. Direct Labor 1,850.93 Indirect Labor 905.20 Power Engineers Inv. #82802 53,150.50 Power Engineers Inv. #83694 80,690.81 Sub-Total $136,597.44 General, Administrative & Construction Overhead (0.5%) $682.99 Total Charges $137,280.43 Costs are allocated as follows: Grant through AIDEA - 75% $42,027.05 Chugach Electric - 8.8075% $4,935.38 City of Seward - 0.4195% $235.07 GVEA - 5.8587% $3,282.98 HEA - 3.3795% $1,893.74 AML&P - 6.5348% $3,661.84 $56,036.05 Please review the attached backup and indicate your concurrence below if you are in agreement that these charges are correct for this work order and time period. As per your request, | will keep the original in the work order file. Concur: Ave. x. Ms 9 tap G/ YO! Sighatur Date djw Attachments Year 1996 1997 1998 1999 2000 2001* Total * Through May 2001 bank statement (does not include Chugach invoices Beginning Bank Balance 0.00 1,371,385.70 364,777.72 177,365.51 538,404.28 378,847.66 May 2001 Chugach Electric Association, Inc. Southern Intertie Activity Summary Grant Chugach Funds Interest Invoices Received Earned Paid 2,771,277.00 40,361.59 (1,440,252.89) 1,346,934.44 67,734.52 (2,421,276.94) 525,214.00 19,424.02 (732,050.23) 985,191.00 19,246.30 (643,398.53) 271,383.56 31,904.14 (462,844.32) 269,409.06 8,377.69 (98,681.86) 6,169,409.06 187,048.26 — (5,798,504.77) for charges incurred in May 2001) Southern Intertie AIDEA mtg Ending Bank Balance 1,371,385.70 364,777.72 177,365.51 538,404.28 378,847.66 557,95255 6/26/01 CHUGACH ELECTRIC ASSOCIATION, INC. Southern Intertie Transactions Inception Through May 31, 2001 Project Expenditures Year to Date Month Inception Through Ended Inception Through 12/31/00 5/1/01 05/31/2001 Through 05/31/2001 Direct Labor $190,549.23 $6,590.35 $1,850.93 $198,990.51 Indirect Labor 75,871.61 3,463.44 905.20 80,240.25 Power Engineers 5,060,117.80 60,363.09 133,841.31 5,254,322.20 Miscellaneous 392,851.08 0.00 0.00 392,851.08 Total $5,719,389.72 $70,416.88 $136,597.44 $5,926,404.03 Grant Fund Expenditures Year to Date Month Inception Through Ended Inception Through 12/31/00 5/1/01 05/31/2001 Through 05/31/2001 Direct Charges that Chugach has been Reimbursed for $ 5,719,389.71 $ 70,416.88 $ 136,597.44 $ 5,926,404.03 Plus General, Administrative & Construction Overhead $ 28,596.95 _$ 352.09 _ $ 682.99 $ 29,632.03 Total Amounts Paid to Chugach $ 5,747,986.66 $ 70,768.97 _$ 137,280.43 $ 5,956,036.06 6/18/01 00-01 Sinterti Invoice Month ‘ Date Incurred Costs OH Total Dec-95 Jun-Oct 95 22,614.00 113.07 22,727.07 Jan-96 0.00 0.00 0.00 Feb-96 Nov-Dec 95 176,265.61 881.33 177,146.94 Mar-96 Jan-96 7,660.92 38.30 7,699.22 Apr-96 Feb-96 251,912.29 1,259.56 253,171.85 May-96 Mar-96 172,070.45 860.35 172,930.80 Jun-96 Apr-96 127,113.82 635.57 127,749.39 Jun-96 May-96 35,628.41 178.14 35,806.55 Aug-96 Jun-96 40,919.00 204.60. 41,123.60 Sep-96 Jul-96 57,116.72 285.58 57,402.30 Oct-96 Aug-96 168,312.54 841.56 169,154.10 Oct-96 Sep-96 202,010.97 1,010.05 203,021.02 Dec-96 Oct-96 171,462.74 857.31 172,320.05 Life to Date 1,433,087.47 7,165.42 1 440,252.89 Jan-97 Nov-96 234,735.50 1,173.68 235,909.18 Feb-97 Dec-96 306,667.10 1,533.34 308,200.44 Mar-97 Jan-97 5,045.85 25.23 5,071.08 Apr-97 Feb-97 124,380.57 621.90 125,002.47 May-97 Mar-97 ‘177,117.40 885.59 178,002.99 Jun-97 Apr-97 165,814.35 829.07 166,643.42 Jul-97 May-97 158,762.80 793.81 159,556.61 Aug-97 Jun-97 158,786.12 793.93 159,580.05 Aug-97 Jul-97 154,159.15 770.80 154,929.95 Sep-97 Aug-97 243,365.76 1,216.83 244,582.59 Oct-97 Sep-97 193,127.79 965.64 194,093.43 Nov-97 Oct-97 258,833.19 1,294.17 260,127.36 Dec-97 Nov-97 228,435.19 1,142.18 229,577.37 ‘Year to Date 2,409,230.77 12,046.17 2,421,276.94 Life to Date 3,842,318.24 19,211.59 3,861,529.83 Jan-98 0.00 0.00 0.00 Feb-98 Dec-97 153,179.64 765.90 153,945.54 Mar-98 0.00 0.00 0.00 Apr-98 Jan-98 39,750.15 198.75, 39,948.90 Apr-98 Feb-98 49,887.09 249.44 30,136.53 May-98 Mar-98 64,102.85 320.51 64,423.36 Jun-98 Apr-98 7,283.97 36.42 7,320.39 Jul-98 May-98 173,312.97 866.56 174,179.53 Aug-98 Jun-98 59,362.04 296.81 59,658.85 Sep-98 Jul-98 38,793.39 193.97 38,987.36 Oct-98 Aug-98 123,711.01 618.56 124,329.57 Nov-98 Sep-98 19,025.07 95.13 19,120.20 Dec-98 0.00 0.00 0.00 ‘Year to Date 728,408.18 3,642.05 732,050.23 Life to Date 4,570,726.42 22,853.64 4,593,580.06 Jan-99 0.00 0.00 0.00 Feb-99 Oct-98 4,729.98 23.65 4,753.63 Nov-98 2,668.64 13.34 2,681.98 Dec-98 63,600.94 318.00 63,918.94 ee USFS Refund (27,159.93) 0.00 (27,159.93) Mar-99 Jan-99 55,203.86 276.02 55,479.88 Apr-99 Feb & Mar 99 133,963.88 669.82 134,633.70 May-99 0.00 0.00 0.00 Jun-99 Apr & May 99 175,367.11 876.83 176,243.94 Jul-99 Jun-99 129,717.72 648.59 130,366.31 Aug-99 Jul-99 62,556.06 312.78 62,868.84 Sep-99 Aug-99 9,366.00 46.83 9,412.83 Oct-99 Sep-99 12,455.30 62.28 12,517.58 Nov-99 Oct-99 9,854.56 49.27 9,903.83 Dec-99 Nov-99 7,738.31 38.69 7,777.00 ‘Year to Date 640,062.43 3,336.10 643,398.53 Life to Date 5,210,788.85 26,189.74 5,236,978.59 Inception-to-Date Charges 22,727.07 22,727.07 199,874.01 207,573.23 460,745.08 633,675.88 761,425.27 797,231.82 838,355.42 895,757.72 1,064,911.82 1,267,932.84 1,440,252.89 1,676, 162.07 1,984,362.51 1,989,433,59 2,114,436.06 2,292,439.05 2,459,082.47 2,618,639.08 2,778,219.13 2,933, 149.08 3,177,731.67 3,371,825.10 3,631,952.46 3,861,529.83 3,861,529.83 4,015,475.37 4,015,475.37 4,055,424.27 4,105,560.80 4,169,984.16 4,177,304.55 4,351,484.08 4,411,142.93 4,450, 130.29 4,574,459.86 4,593,580.06 4,593,580.06 4,593,580.06 4,598,333.69 4,601,015.67 4,664,934.61 4,637,774.68 4,693,254.56 4,827,888.26 4,827,888.26 5,004, 132.20 5,134,498.51 5,197,367.35 5,206,780.18 5,219,297.76 5,229,201.59 5,236,978.59 00-01 Sinterti Invoice Month Inception-to-Date Date Incurred Costs OH Total Charges Jan-00 Dec-99 13,496.23 67.48 13,563.71 5,250,542.30 Feb-00 Jan-00 3,892.65 19.46 3,912.11 5,254,454.41 Mar-00 Feb-00 9,362.97 46.81 9,409.78 5,263,864.19 Apr-00 Mar-00 41,813.83 209.07 42,022.90 5,305,887.09 May-00 Apr-00 20,419.98 102.10 20,522.08 5,326,409.17 Jun-00 May-00 58,113.81 290.57 58,404.38 5,384,813.55 Jul-00 Jun-00 22,827.27 114.14 22,941.41 5,407,754.96 Aug-00 Jul-00 147,084.41 735.42 147,819.83 5,555,574.79 Sep-00 Aug-00 114,403.32 572.02 114,975.34 5,670,550.13 Oct-00 Sep-00 17,513.29 87.57 17,600.86 5,688, 150.99 Nov-00 Oct-00 7,908.09 39.54 7,947.63 5,696,098.62 Dec-00 Nov-00 3,705.76 18.53 3,724.29 5,699,822.91 ‘Year to Date 460,541.61 2,302.71 462,844.32 Life to Date 5,671,330.46 28,492.45 5,699.822.91 Invoice Month Inception-to-Date Date Incurred Costs OH Total Charges Jan-01 Dec-00 20,899.33 104.50 21,003.83 5,720,826.74 Feb-01 Jan-01 4,043.31 20.22 4,063.53 5,724,890.27 Mar-01 Feb-01 3,571.96 17.86 3,589.82 5,728,480.09 Apr-01 Mar-01 59,726.05 298.63 60,024.68 5,788,504.77 May-01 Apr-01 3,075.56 15.38 3,090.94 5,791,595.71 Jun-01 May-01 136,597.44 682.99 137,280.43 5,928,876.14 Jul-01 Jun-01 0.00 5,928,876.14 Aug-01 Jul-01 0.00 5,928,876.14 Sep-01 Aug-01 9.00 5,928,876.14 Oct-01 Sep-01 0.00 5,928,876.14 Nov-01 Oct-01 0.00 5,928,876.14 Dec-01 Nov-01 0.00 5,928,876.14 Year to Date 227,913.65 1,139.58 229,053.23 Life to Date 5,899,244.11 29,632.03 5, 928,876.14 he USFS Reimbursement is not included in total Grant Fund Expenditures portion of Transaction Spreadsheet. 00-01 Sinterti Bank Account Activity Summary May 2001 April Ending Balance Forward Total Deposits Total Withdrawals Interest Earned Balance May 31, 2001 Southern Intertie Grant Fund Southern intertie bank activity $559,241.95 $6,909.06 ($10,000.00) $1,801.54 $557,952.55 6/14/01 ooo O01 00 PAGE: DATE: 05/31/01 ACCOUNT: 411000 First National Bank of Anchorage Rate dm, WDabaebsdonsdatesnstMdaesDEcoD DW saldetboblboll CHUGACH ELECTRIC Assoc INC 7 310 PO BOX 196300 ANCHORAGE AK 99519-6300 oo MAIN BRANCH TELEPHONE: 907-777-4362 PO BOX 100720 ANCHORAGE AK 99510-0720 DESCRIPTION DEBITS CREDITS DATE BALANCE BAUANCE LAST STATEMENT! sere cicie oie cele: o sleisiieiaiel o oleie ol sieiere stele! everlets 04/0701: 559,241.95 INTEREST 61.72 05/01/01 559,303.67 INTEREST 61.72 05/02/01 559,365.39 INTEREST 61.73 05/03/01 559,427.12 INTEREST 61.74 05/04/01 559,488.86 INTEREST 181.66 05/07/01 559,670.52 INTEREST 58.19 05/08/01 559,728.71 INTEREST 58.20 05/09/01 559,786.91 INTEREST 58.20 05/10/01 559,845.11 INTEREST 58.21 05/11/01 559,903.32 INTEREST 174.20 05/14/01 560,077.52 TRANSFER FROM BUSINESS ACCOUNT 1106061 6,909.06 05/15/01 566,986.58 INTEREST 58.50 05/15/01 567,045.08 TRANSFER TO BUSINESS ACCOUNT 1106061 10,000.00 05/16/01 557,045.08 INTEREST 57.47 05/16/01 557,102.55 INTEREST 57.48 05/17/01 557,160.03 INTEREST 57.49 05/18/01 557,217.52 INTEREST 171.04 05/21/01 557,388.56 INTEREST 56.07 05/22/01 557,444.63 INTEREST 56.08 05/23/01 557,500.71 INTEREST 56.09 05/24/01 557,556.80 INTEREST 56.09 05/25/01 557,612.09 INTEREST 225.40 05/29/01 557,838.29 INTEREST 57.13 05/30/01 557,895.42 INTEREST 57.13 05/31/01 557,952.55 BALANCE THIS STATEMENT ....cscccecee Beer oustatorell shactehs sie ss sere ive 0970007 O11. 557,952.55 ae eC OS Nee BD wie 8 aun neue LENDER 000 O01 00 PAGE: DATE: 05/31/01 ACCOUNT: 41100 First National Bank iy ae Ue ete Member FDIC CHUGACH ELECTRIC ASSOC INC TOTAL CREDITS (23) 8,710.60 TOTAL DEBITS (1) 10,000.00 INTEREST THIS STATEMENT 1,801.54 INTEREST PAID 2001 8,377.69 - END OF STATEMENT - Poorer LENDER WI. SCHEDULE 1. Project Schedule CHUGACH ELECTRIC ASSOCIATION ANCHORAGE - KENAI INTERTIE Mon 6/18/01 PHASE IC 1995 1996 1997 1998 1999 2000 2001 2002 ID | Task Name 1 | ENVIRONMENTAL & ENGINEERING 2 | PROJECTMANAGEMENT _| 3 | ROUTE SELECTIONSTUDIES | @ | EVAL&PRELENGINEERING | 5 PREPARATION =———s| 6| odes 7 =4 7 COMMENTPERIOD | 8] res — 4) 9 " REVIEWPERIODFEIS 10 |AGENCIES sst—(‘“‘—:s*sSS 1 USFWS 12| RUS” =is 13{ USFS “| Coe | 15 ROD - Project: ANCHORAGE - KENAI INTE Date: Mon 6/18/01 Task Progress Milestone ¢ Quay ee Rolled Up Milestone > Summary Rolled Up Task Rolled Up Progress TS External Tasks (GE) Proiect Sunmay TT Split Rolled Up Split PH_IC.MPP Page 1 IV. ITEMS FOR APPROVAL None V. ITEMS FOR DISCUSSION None VI. ITEMS FOR INFORMATION 1. POWER Engineers Monthly Report dated June 18, 2001 2. Chugach Electric Assoc., Inc. State Financial Assistance Report, Year Ended December 31, 2000 a WER | RECEIVER ENGINEERS June 18, 2001 JUN i S 2004 TRANSMISSION & Ms. Dora Gropp SPECIAL PROJECT Chugach Electric Association 5601 Minnesota Drive, Building A Anchorage, AK 99518 Subject: POWER Project #120376 EIS & Preliminary Engineering Chugach Contract No. 7614, Monthly Status Report No. 6 For Period May 13 — June 9, 2001 Dear Dora: This report summarizes the activities completed for Task 11 (Contract No. 7614) during the reporting period. Key Issues: e Draft PDEIS was issued for comment as scheduled May 30. e Team review meeting of PDEIS on June 18-20 in Anchorage. Reporting Period Overview: e Project coordination activities included progress reporting, conference call coordination, resource team update, and website maintenance Project team conference calls 5/17 and 5/24 Team meeting with Tim Tetherow 5/11-5/13 Resource team meeting to discuss results of the document review Team meetings to discuss document status Printing and distribution of chapters 1, 4, and 5 for team review Ongoing drafting of Chapter 3 sections Ongoing review of completed sections Incorporate chapter edits as received from the team Drafted Executive Summary Discussed Chapter 2 reorganization with RUS and edited chapter Review of completed socioeconomic information Cumulative impacts draft Finalized most sections of the PDEIS Printed and assembled document and document graphics Distributed PDEIS to team on May 30 Responses from USFWS incorporated into spreadsheet Socioeconomic responses incorporated into spreadsheet Review of land use and visual comments HLY 23-289 ® Chugach Electric Association June 18, 2001 Page 2 Work Planned for Next Reporting Period: Create impact tables Cumulative impacts work session with Tim Tetherow (6/8) Revise Table 2-9 from EVAL Assemble and incorporate comments on preliminary draft prior to team review meeting Create index, references and appendices sections Develop mailing list for distribution of DEIS Team review meeting in Anchorage Incorporate final edits after team review meeting Revise Mangi and AkPIRG spreadsheets with PDEIS data Schedule: All chapters have been distributed for review. The cumulative impacts section needs to be completed. The appendix and reference sections need to be completed prior to distribution of the DEIS. EPG’s progress report (attached) includes a calendar that is being used to track the progress of the DEIS. Budget: The Task 11 (Contract 7614) invoice is for the work from May 13 through June 9, 2001. Task 11 Budget $731,264 Task 11 Billed Through Previous Invoice $190,277 Task 11 Billed This Invoice $111,347 Task 11 Billed Subtotal to Date $301,624 Task 11 Remaining Project Budget $429,640 Total Budget $5,032,005 - Total Billed Through Previous Invoice $4,439,527 Total Billed This Invoice $ 111,347 Total Remaining Project Budget $ 481,131 HLY 23-289 DOWER ENGINEERS Chugach Electric Association June 18, 2001 Page 3 The above cost summary includes charges for PEI through June 9, 2001 and for EPG through June 2, 2001. Attached is a budget spreadsheet for Task 11. Dora, should you have any questions about this report or any of the backup, please do not hesitate to contact Mike Walbert or me. Sincerely, POWER es Inc. ~ IN a / 4] Rs Cae? Sandy Pollock, P.E. Project Manager RP/tr Enclosures cc: PROJECT TEAM HLY 23-289 os ‘ 3 CR DOWER CEC EE WET VASES SE ROT HIE SOUTHERN INTERTIE PROJECT - 120376 PROJECT FINANCIAL SUMMARY — JUNE, 2001 INVOICE Project Task 1 Task 4 Task 5 Task 6 Task 7 Task 8 Task 9 Total Base Not to Exceed | $351,050 $303,475 $402,570 $247,616 $101,480 $202,655 $189,861 N/A $3,043,423 Budget cWG Contract | $23,789 $32,866 $4,904 NA N/A N/A N/A NA $103,046 Amendment No. 4 DFI Contract N/A N/A $45,000 N/A N/A N/A N/A N/A $45,000 Amendment No. 5 DFI Contract NA N/A $11,400 N/A N/A N/A N/A N/A $11,400 Amendment No. 6 DFI Contract N/A N/A $3,502 N/A N/A NA N/A N/A $3,502 Amendment No. 7 DFI Contract N/A $89,487 N/A N/A N/A N/A N/A $89,487 Amendment No. 8 Task 5&6 N/A $194,150 ($194,150) N/A N/A $o Reallocation * Contract N/A $31,926 N/A N/A N/A $31,926 Amendment No. 9 Contract NA NA $118,193 N/A N/A N/A $118,193 Amendment No. 11 Contract 820, | N/A N/A NA N/A $465,215 N/A N/A N/A N/A NA N/A $465,215 Amendment No. 4 Contract 820 | NA N/A N/A N/A N/A NA N/A N/A N/A $389,547 N/A $389,547 Amendment No. 2 Contract No. 7614 NA N/A N/A N/A N/A N/A N/A N/A N/A NA $731,264 $731,264 Total Not to Exceed | $374,839 $679,591 $606,612 $336,341 $1,366,349 $53,466 $101,480 $202,655 $189,861 $389,547 $731,264 $5,032,005 Budget Actual Budget | $374,839 $679,583 $606,540 $336,315 $1,353,299 $52,250 $101,476 $202,610 $189,852 $352,486 $190,277 $4,439,527 Expended Through Previous Invoice Current Invoice | $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $111,347 $111,347 Amount Actual Budget | $374,839 $679,583 $336,315 $1,353,299 $101,476 $202,610 $189,852 $352,486 $301,624 $4,550,874 Expended Through Current Invoice Remaining $0 $8 $26 $13,050 $4 $45 $9 $37,061 $429,640 $481,131 Budget ° Task 5 budget amount reflects the addition of Contract No. 820, Amendment No. 1 funds. ° Task 10 budget amount reflects the addition of Contract No. 820, Amendment No. 2 funds. . Task 11 budget amount reflects the addition of Contract No. 7614 funds HLY 23-289 6/18/2001 SOUTHERN INTERTIE PROJECT THROUGH PERIOD ENDING: Page 1 of 3 PROJECT SUMMARY REPORT eet 1ST QUARTER 2001 2ND QUARTER 2001 TASK! MONTH| JAN FEB MAR APR MAY JUN 11-0 |PM & Monthly Reporting | Actual % Work Completed* | 8% 15% 30%| == 37% = 45%. 50% Planned % Complete $ (to date) | 8% 19% | 31% / 42% 54% 65% Actual % Expended $ (to date) 8% 15% 23% 30% 38% 43% Planned $ (this period) _ $1,507 | $2,190 $2,190] $2,190! $2,190 $2,190 Actual $ Expended (this period) $1,507 $1,390 $1,509 $1,310 $1,506 $918 Planned $ (to date) $1,507 | $3,697 $5,887 | $8,077 | $10,267 $12,457 | Actual $ Expended.(to date) $1,507 $2,897 $4,406 $5,716 $7,222 $8,140 Contract No. 7614 $19,024 $19,024 $19,024 | $19,024 $19,024 $19,024 ~ Actual Remaining Task Budget | $17,517 $16,127 $14,618 | $13,308 $11,802 $10,884 11-1 |Meetings & Coordination ~ Actual % Work Completed _ 0%! 12%! += 30% 40% 55% 65% |Planned % Complete $ (to date) _ 0% 24% 30%} —« 44% 65% 74% Actual % Expended $ (to date) 0% 12% 16% 20% 26% 29% | Planned $(thisperiod) [| $0 $16,364 $4,574] $9,909 $14,413 $6,410 | Actual $ Expended (this period) | $0 $8,177 $3,041 $2,937 $3,744 $2,306 | Planned$(todate) | $0 $16,364 $20,938 | $30,847 $45,260 $51,670 Actual $ Expended (to date) $0 $8,177 $11,218 | $14,155 $17,899 . $20,205 Contract No. 7614 $69,549 $69,549 $69,549 | $69,549 $69,549 $69,549 Actual Remaining Task Budget | $69,549 $61,372 $58,331 | $55,394 $51,650 $49,344 11-2 |Mangi Comment Spreadsheet Actual % Work Completed | 0% 0% —10%| 10% 15% 20% Planned % Complete $(todate)| 0% _T% 23%) 45% 71% 94% Actual % Expended $ (to date) 0% 0% 5% 11% 12% 17% Planned $ (this period) $0 $2,244 = $5,304 | $6,925 $8,302 $7,545 | Actual $ Expended (this period) | $0 $0 $1,464 $2,196 $197 $1,493 Planned $(todate) $0 $2,244 $7,548| $14,473 $22,775 $30,320 | Actual $ Expended (to date) $0 $0 $1,464] $3,660 $3,857 $5,350 Contract No. 7614 $32,138 $32,138 $32,138 | $32,138 $32,138 $32,138 ~ Actual Remaining Task Budget | $32,138 $32,138 $30, 674 | $28,478 $28,281 $26,788 11-3 |AKPRIRG & Flyfisher Spreadsheet ot Actual % Work Completed 0% O% 10%} 10% 15% 20% Planned % Complete $ (to date) | ___—0% += 7% «= 27%| 51% ~——75% = 92% Actual % Expended $ (to date) 0% 0% 0% 2% 4% 4% Planned $ (this period) $0. $1,798 = $4,738 | $5,758 $5,758 $4,228 Actual $ Expended (this period) | $0 $0 $0 $377 $527 $137 “Planned $ (to date) $0 $1,798 $6,536 | $12,294 | $18,052 $22,280 | Actual $ Expended (to date) $0 $0 $0 $377. $904 $1,041 Contract No. 7614 $24,195 $24,195 $24,195 | $24,195 $24,195 $24,195 “Actual Remaining Task Budget | $24,195 $24,195 $24,195 | $23,818 $23,291 $23,154 January 2001 Contract No. 7614 HLY 23-289a 6/18/2001 SOUTHERN INTERTIE PROJECT THROUGH PERIOD ENDING: Page 2 of 3 PROJECT SUMMARY REPORT —_ 1ST QUARTER 2001 [ 2ND QUARTER 2001 TASK MONTH| JAN FEB MAR APR MAY JUN 11-4 |Cumulative Impacts | Actual % Work Completed {| 0% 1% 10% 15% 25% 30% Planned 1 % Complete $ (to date) | 0% 6% 26% 59% 92% 100% Actual % Expended $ (to date) 0% 1% 7% 9% 11% 20% ___ Planned $ (this period) __ $0 $8,310 | $29,751 | $47,091 $47,092 $12,032 Actual $ Expended (this period) $0 $1,914 $8,136 | $2,656 $3,770. $11,836 Planned $ (to date) — $0 $8,310 $38,061 | $85,152 $132,244 $144,276 ‘Actual $ Expended (to date) $0 $1,914 $10,050 | $12,706 $16,476 _ $28,312 Contract No. 7614 _ $144,276 $144,276 $144,276 |$144,276 $144,276 $144,276 Actual Remaining Task Budget |$144,276 $142,362 $134,226 |$131,570 $127,800 $115,964 11-5 |Prepare PDEIS _ Actual % Work Completed 0% 3%, 15%] 45% 70% 95% Planned % Complete $(todate)| 0% 10% 37% 68% 92% 100% Actual % Expended $ (to date) 0% 3% 11% 29% 57% 90% Planned $ (this period) | = $0 = $25,620 $66,930 | $78,354 $58,005 $21,206 Actual $ Expended (this period) $0 $8,691 $19,610 | $43,641 $70,948 $82,015 Planned $ (to date) _ $0 $25,620 $92,550 |$170,904 $228,909 $250,115 | Actual $. Expended (to date) $0 $8691 $28,301 | $71,942 $142,890 $224,905 Contract No. 7614 $250,115 $250,115 $250,115 |$250,115 $250,115 $250,115 | Actual Remaining Project Budget |$250,115 $241,424 $221,814 |$178,173 $107,225 $25,210 11-6 |Prepare DEIS Actual % Work Completed _ 0% 0% 0%} 0% 0% 25% | “Planned % Complete $ (to date) 0% 0% 0%|_ 0% 0% 0% Actual % Expended $ (to date) 0% 0% 0% 0% 0% 24% __ Planned $ (this period) __ $0 so. _—S0 so. $0 __—$0 Actual $ Expended (this period) | =: $0 $0 __—$0 $0 $0. $12, 642 __ Planned $ (to date) «$0, $0 «$0 _ $0 $0 | $0. ~ Actual $ Expended (to date) $0 $0 $0 $0 $0 $12,642 Contract No. 7614 $51,902 $51,902 $51,902] $51,902 $51,902 $51,902 | Actual Remaining Project Budget| $51,902 $51,902 $51,902 | $51,902 $51,902 $39,260 11-7 {Mailing List Actual % Work Completed 0% 3% «4% 10% 15% 15% Planned % Complete $(todate)| 0% 7% -25%| = «50% = 59% +=: 90% Actual % Expended $ (to date) 0% 3% 4% 4% 4% 4% __ Planned $ (this period) _ $0 $1,754 $4,508 | $6,548 $2,264 $7,874 Actual $ Expended (this period) $0 ‘$712 $285 _ $33 $0 $0 Planned $ (to date) $0 $1,754 $6,262 | $12,810 $15,074 $22,948 Actual $ Expended (to date) $0 $712 $997 $1,030 $1,030 $1,030 Contract No. 7614 $25,440 $25,440 $25,440 | $25,440 $25,440 $25,440 Actual Remaining Project Budget| $25,440 $24,728 $24,443 | $24,410 $24,410 $24,410 January 2001 Contract No. 7614 HLY 23-289a 6/18/2001 SOUTHERN INTERTIE PROJECT THROUGH PERIOD ENDING: roe ee PROJECT SUMMARY REPORT rah 1ST QUARTER 2001 2ND QUARTER 2001 TASK'| MONTH| JAN FEB MAR APR MAY JUN 11-8 |Print & Distribute DEIS Actual % Work Completed OVO LOL 0%} —i0% Oro MEL OPe) | Planned % Complete $(todate)| 0% _ OPO UO O%)) OP6 NOs Actual % Expended $ (to date) 0% 0% 0% 0% 0% 0% Planned $(thisperiod) [ $0, $0. «$0 e000 Actual $ Expended (this period) $0 $0 $0 $0 $0 $0 | __ Planned $(todate) 1:0 i) $0 $0| $0 $0 __ $0 Actual $ Expended (to date) $0 $0 $0 $0 $0 $0 Contract No. 7614. $114,624 $114,624 $114,624 [$114,624 $114,624 $114,624 TASK 11 TOTAL Actual ‘Remaining Task Bt Budget $114,624 $114,624 $114,624 1$114,624 $114,624 $114,624 Actual $ Expended (to date) $1,507 _ $22,391 $56,436 Actual % Work Completed TAEOR) 370) ATS %olN 25%) 1111 S62 49% Planned % Complete $(todate)| = 0% 8% _24%| 46% =—— 65% == 73% Actual % Expended $ (to date) 0% 3% 8% 15% 26% 41% ___ Planned $ (this period) _ $1,507 $58,280 $117,995 |$156,775 $138,024 $61,485 Actual $ Expended (this period) $1,507 $20,884 $34,045 | $53,150 $80,692 $111,347 Planned $ (to date) $1,507 $59,787 $177,782 |$334,557 $472,581 $534,066 $109,586 $190,278 $301,625 Contract No. 7614 Remaining Task 11 Budget 1$731,263 $731,263 $731,263 $729,756 $708,872 $674,827 | $731,263 $621,677 $731,263 $731,263 $540,985 $429,638 Notes: January 2001 Contract No. 7614 HLY 23-289a Fae CHUGACH ELECTRIC ASSOCIATION, INC. State Financial Assistance Reports Year ended December 31, 2000 CHUGACH ELECTRIC ASSOCIATION, INC. Table of Contents Independent Auditors’ Report on Schedule of State Financial Assistance Schedule of State Financial Assistance Notes to Schedule of State Financial Assistance Independent Auditors’ Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditors’ Report on Compliance for a State Single Audit Independent Auditors’ Report on the Internal Control Structure for a State Single Audit Page(s) ave 601 West Fifth Avenue Suite 700 Anchorage, AK 99501-2258 Independent Auditors’ Report on Schedule of State Financial Assistance The Board of Directors Chugach Electric Association, Inc.: We have audited the financial statements of the Chugach Electric Association, Inc. (Chugach) as of and for the year ended December 31, 2000, and have issued our report thereon dated February 23, 2001. These financial statements are the responsibility of Chugach’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was made for the purpose of forming an opinion on the financial statements of Chugach Electric Association, Inc. taken as a whole. The accompanying Schedule of State Financial Assistance is presented for purposes of additional analysis and is not a required part of the basic financial statements. The information in the schedule has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly presented, in all material respects in relation to the financial statements taken as a whole. KPMG LEP April 23, 2001 KPMG LLP. KPMG LLP. a US. limited labulity partnership, is a member of KPMG International, a Swiss association maa CHUGACH ELECTRIC ASSOCIATION, INC. Schedule of State Financial Assistance Year Ended December 31, 2000 Total expenditures Department of Administration: Direct: Southern Intertie Route Selection $ 437,911 Total Department of Administration 437,911 Department of Military and Veterans Affairs: Division of Emergency Services Direct: Disaster Public Assistance — Gulf Storm 2000 297,148 Federal pass through: Federal Emergency Management Agency 891,442 Total Department of Military and Veterans Affairs 1,188,590 Total State Expenditures $ 1,626,501 to CHUGACH ELECTRIC ASSOCIATION, INC. Notes to Schedule of State Financial Assistance Year Ended December 31, 2000 General The accompanying Schedule of State Financial Assistance presents the activity of all state financial assistance programs of Chugach. Chugach’s reporting entity is defined in note 1 to Chugach’s financial statements. State financial assistance received directly from state agencies as well as state financial assistance passed through other government agencies is included on the schedule. Basis of Accounting The accompanying Schedule of State Financial Assistance is presented using the accrual basis of accounting, which is described in note 1 to Chugach’s financial statements. Fae 601 West Fifth Avenue Suite 700 Anchorage, AK 99501-2258 Independent Auditors’ Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The Board of Directors Chugach Electric Association, Inc.: We have audited the financial statements of Chugach Electric Association, Inc. (Chugach) as of and for the year ended December 31, 2000, and have issued our report thereon dated February 23, 2001. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. As part of obtaining reasonable assurance about whether Chugach’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. In planning and performing our audit, we considered Chugach’s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of Chugach’s Board of Directors, management and state awarding agencies and is not intended to be and should not be used by anyone other than these specified parties. KPMG LUP April 23, 2001 KPMG LLP. KPMG iLP. a U.S. limited liability partnership, is ‘a member of KPMG International, a Swiss association aie 601 West Fifth Avenue Suite 700 Anchorage, AK 99501-2258 Independent Auditors’ Report on Compliance for a State Single Audit The Board of Directors Chugach Electric Association, Inc.: We have audited the financial statements of the Chugach Electric Association, Inc. (Chugach) as of and for the year ended December 31, 2000, and have issued our report thereon dated February 23, 2001. As part of obtaining reasonable assurance about whether the financial statements and the major state assistance program are free of material misstatement, we have applied procedures to test Chugach’s compliance with certain provisions of laws and regulations and with the general requirements applicable to its state financial assistance programs and the specific requirements that are applicable to its major state financial assistance program, which is identified in the accompanying schedule of state financial assistance, for the year ended December 31, 2000. The management of Chugach is responsible for Chugach’s compliance with those requirements. Our responsibility is to express an opinion on compliance with those provisions and requirements based on our audit. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards issued by the Comptroller General of The United States, and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits. Those standards and the audit guide require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about Chugach’s compliance with those provisions and requirements. We believe that our audit provides a reasonable basis for our opinion. In our opinion, Chugach complied, in all material respects, with the provisions of laws and regulations and the applicable general requirements governing its state financial assistance program and with the specific requirements that are applicable to its major state financial assistance program for the year ended December 31, 2000. This report is intended solely for the information and use of Chugach’s Board of Directors, management and state awarding agencies and is not intended to be and should not be used by anyone other than these specified parties. KPa LEP April 23, 2001 KPMG LLP. KPMG LLP, a U.S. limited liability partnership, 1s a member of KPMG International, a Swiss association Rana 601 West Fifth Avenue Suite 700 Anchorage, AK 99501-2258 Independent Auditors’ Report on the Internal Control Structure for a State Single Audit The Board of Directors Chugach Electric Association, Inc.: We have audited the financial statements of Chugach Electric Association, Inc. (Chugach) as of and for the year ended December 31, 2000, and have issued our report thereon dated February 23, 2001. We have also audited Chugach’s compliance with general requirements and specific requirements applicable to the major state financial assistance program and have issued our report thereon dated February 23, 2001. We conducted our audits in accordance with generally accepted auditing standards, Government Auditing Standards issued by the Comptroller General of The United States, and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits. Those standards and the audit guide require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and about whether Chugach complied with laws and regulations, noncompliance with which would be material to a major state financial assistance program. The management of Chugach is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management’s authorization with generally accepted accounting principles, and that state financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projections of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. In planning and performing our audit of the financial statements of Chugach for the year ended December 31, 2000, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and on compliance with general requirements and requirements applicable to major state financial assistance KPMG LLP. KPMG LLP. a U.S limited liability partnership, is a member of KPMG International, a Swiss association. nav The Board of Directors Chugach Electric Association, Inc. programs and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that (1) errors or irregularities in amounts that would be material in relation to the financial statements being audited or (2) noncompliance with laws and regulations that would be material to the state programs being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. This report is intended solely for the information and use of Chugach’s Board of Directors, management and state awarding agencies and is not intended to be and should not be used by anyone other than these specified parties. KPI LEP April 23, 2001