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HomeMy WebLinkAboutIntertie grant agreements memos 1993September 13, 1993 Dear : I have carefully reviewed the intertie grant agreements proposed by the utilities. I believe that the agreement provides an excellent definition of the steps necessary to satisfy the conditions set out in the grant appropriations made in ch 19, SLA 1993. The participating utilities have shown substantial good faith and concerted effort to reach this point. However, before the grant can be awarded, you must complete the participation agreement which is a key element to a _ conclusive determination that the preconditions to the grants have been satisfied. It is also necessary to resolve any uncertainty about constraints imposed by federal law on the ability of a cooperative electric utility to receive these grants. I have been advised by the Department of Law that the obligations set out in the proposed grant agreement and the yet to be prepared participation agreement may not be final and binding absent review and approval by the Alaska Public Utilities Commission. I would like the utilities position on the necessity for APUC review of the intertie grant and participation agreements. The final grant agreement must anticipate this circumstance so that we all understand the ramifications. Pending full satisfaction of the legislature's conditions, the Authority is prepared to request that the Department of Administration transfer custody of and responsibility for the grant to the Alaska Industrial Development and Export Authority. This means the intertie grant appropriations will be deposited in the revolving fund of AIDEA, where the money will be held and accumulate interest for the purposes of the grants. When the conditions to payment are satisfied, the amount appropriated plus any interest accrued while in the possession of AIDEA will be available for expenditure as provided in the final grant agreement. I further add that given the substantial preliminary agreement reached among the participating utilities, I have requested legal confirmation that grant funds held by the Authority can be expended on preliminary design, engineering and permitting work if the participating utilities think prudent. September 13, 1993 Page Two During AIDEA custody of the grant appropriation, the grant agreement must provide that the utilities will not have a vested right to receive payment beyond amounts necessary to satisfy valid obligations incurred by the responsible utilities. The legislature would be able to appropriate the unencumbered and unobligated money from AIDEA for any valid public purpose. I believe the possibility of further appropriation of intertie grant funds by the legislature is remote. However, as custodian of such a substantial amount of public money, AIDEA must be careful to preserve the legislature's plenary power of appropriation over all publicly held money. I am pleased to host a meeting with your negotiating committee on September 17 to discuss points raised in this letter and the next steps to take to accomplish the intent of the legislature. Sincerely yours, ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY William R. Snell Executive Director cc: Pat Ryan, Chief of Staff, Office of the Governor James Baldwin, Esq., Department of Law 1Michael P. Kelly, General Manager ) Golden Valley Electric Association 907] 45 We V/ Su) (Beth P.O. Box 71249 Fairbanks, Alaska 99707-1249 fu 4S] - 563 3 Mr. Kelly Michael P. Kelly - Letter 2Mr. Tom Stahr, General Manager é mM Kay) Anchorage Municipal Light & Power TG- 67/ Qrn c 1200 E. 1st Avenue 907] 277-7 Anchorage, Alaska 99501 i Mr. Stahr. ix 263 szo4 Tom Stahr - Letter 3Mr. David L. Highers, General Manager Chugach Electric Association, Inc. hr. P.0. Box 196300 569 Minnesota Anchorage, Alaska 99519-6300 of Mr. Highers 907] 5 93- 749 David L. Highers - Letter fax 562-0027 4Ron L. Saxton, Esq. Ater, Wynne, Hewitt, Dodson & Skerritt 222 S.W. Columbia, Suite 1800 503/ 2267077 x ere Portland, Oregon 97201-6618 ny ne h eeves Mr. Saxton [ e Ron L. Saxton — Letter 50 3/2 26 0074 bee: Jon Rubini, Esq. Dennis V. McCrohan, AIDEA ALASKA INDUSTRIAL DEVELOPMENT fA oy AND EXPORT AUTHORITY 480 WEST TUDOR * ANCHORAGE, ALASKA 99503-6690 + (907) 561-8050 » FAX (907) 561-8998 September 13, 1993 Ron L. Saxton, Esq. Ater, Wynne, Hewitt, Dodson & Skerritt 222 S.W. Columbia, Suite 1800 Portland, Oregon 97201-6618 Dear Mr. Saxton: I have carefully reviewed the intertie grant agreements proposed by the utilities. I believe that the agreement provides an excellent definition of the steps necessary to satisfy the conditions set out in the grant appropriations made in ch 19, SLA 1993. The participating utilities have shown substantial good faith and concerted effort to reach this point. However, before the grant can be awarded, you must complete’ the participation agreement which is a key element to a _ conclusive determination that the preconditions to the grants have been satisfied. It is also necessary to resolve any uncertainty about constraints imposed by federal law on the ability of a cooperative electric utility to receive these grants. I have been advised by the Department of Law that the obligations set out in the proposed grant agreement and the yet to be prepared participation agreement may not be final and binding absent review and approval by the Alaska Public Utilities Commission. I would like the utilities position on the necessity for APUC review of the intertie grant and participation agreements. The final grant agreement must anticipate this circumstance so that we all. understand the ramifications. Pending full satisfaction of the legislature's conditions, the Authority is prepared to request that the Department of Administration transfer custody of and responsibility for the grant to the Alaska Industrial Development and Export Authority. This means the intertie grant appropriations will be deposited in the revolving fund of AIDEA, where the money will be held and accumulate interest for the purposes of the grants. When the conditions to payment are satisfied, the amount appropriated plus any interest accrued while in the possession of AIDEA will be available for expenditure as provided in the final grant agreement. I further add that given the substantial preliminary agreement reached among the participating utilities, I have requested legal confirmation that grant funds held by the Authority can be expended on preliminary design, engineering and permitting work if the participating utilities think prudent. Ron L. Saxton - Letter September 13, 1993 Page Two During AIDEA custody of the grant appropriation, the grant agreement must provide that the utilities will not have a vested right to receive payment beyond amounts necessary to satisfy valid obligations incurred by the responsible utilities. The legislature would be able to appropriate the unencumbered and unobligated money from AIDEA for any valid public purpose. I believe the possibility of further appropriation of intertie grant funds by the legislature is remote. However, as custodian of such a substantial amount of public money, AIDEA must be careful to preserve the legislature's plenary power of appropriation over all publicly held money. I am pieased to host a meeting with your negotiating committee on September 17 to discuss points raised in this letter and the next steps to take to accomplish the intent of the legislature. Sincerely yours, ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY am’R.” Snel Executive Director ec: Pat Ryan, Chief of Staff, Office of the Governor James Baldwin, Esq., Department of Law é ALASKA INDUSTRIAL DEVELOPMENT fA py AND EXPORT AUTHORITY 480 WEST TUDOR « ANCHORAGE, ALASKA 99503-6690 + (907) 561-8050 * FAX (907) 561-8998 DATE: Z V3 Gs TIME: NOTICE: This facsimile contains confidential information that is being transmitted to and is intended only for the use of the recipient named below. Reading, disclosure, discussion, dissemination, distribution, or copying of this information by anyone other than the named recipient or his or her employees or agents is strictly prohibited. If you have received this facsimile in error, please immediately destroy it and notify us by telephone, (907) 561-8050. PLEASE DELIVER THE FOLLOWING PAGES TO: aa Sax ton, E55. TRANSMITTING FROM: RICOH FAX 1000L (907) 561-8998 THIS TRANSMITTAL IS FROM: & beg Sel! NUMBER OF PAGES (INCLUDING COVER PAGE): a HARD COPY TO FOLLOW BY: A Regular Mail Courier No Documents will follow this transmission. IF YOU EXPERIENCE ANY PROBLEMS IN RECEIVING, PLEASE TELEPHONE THE OFFICE NUMBER (907-561-8050) AND ASK FOR AAT AT : SPECIAL INSTRUCTIONS OR COMMENTS 7 yy ee a Spent A gecrcen BF DOCSMS23/p9 H ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY 480 WEST TUDOR * ANCHORAGE, ALASKA 99503-6690 + (907) 561-8050 + FAX (907) 561-8998 September 13, 1993 Michael P. Kelly, General Manager Golden Valley Electric Association P.O. Box 71249 Fairbanks, Alaska 99707-1249 Dear Mr. Kelly: I have carefully reviewed the intertie grant agreements proposed by the utilities. I believe that the agreement provides an excellent definition of the steps necessary to satisfy the conditions set out in the grant appropriations made in ch 19, SLA 1993. The participating utilities have shown substantial good faith and concerted effort to reach this point. However, before the grant can be awarded, you must complete’ the participation agreement which is a key element to a _ conclusive determination that the preconditions to the grants have been satisfied. It is also necessary to resolve any uncertainty about constraints imposed by federal law on the ability of a cooperative electric utility to receive these grants. I have been advised by the Department of Law that the obligations set out in the proposed grant agreement and the yet to be prepared participation agreement may not be final and binding absent review and approval by the Alaska Public Utilities Commission. I would like the utilities position on the necessity for APUC review of the intertie grant and participation agreements. The final grant agreement must anticipate this circumstance so that we all understand the ramifications. Pending full satisfaction of the legislature's conditions, the Authority is prepared to request that the Department of Administration transfer custody of and responsibility for the grant to the Alaska Industrial Development and Export Authority. This means the intertie grant appropriations will be deposited in the revolving fund of AIDEA, where the money will be held and accumulate interest for the purposes of the grants. When the conditions to payment are satisfied, the amount appropriated plus any interest accrued while in the possession of AIDEA will be available for expenditure as provided in the final grant agreement. I further add that given the substantial preliminary agreement reached among the participating utilities, I have requested legal confirmation that grant funds held by the Authority can be expended on preliminary design, engineering and permitting work if the participating utilities think prudent. Michael P. Kelly - Letter September 13, 1993 Page Two During AIDEA custody of the grant appropriation, the grant agreement must provide that the utilities will not have a vested right to receive payment beyond amounts necessary to satisfy valid obligations incurred by the responsible utilities. The legislature would be able to appropriate the unencumbered and unobligated money from AIDEA for any valid public purpose. I believe the possibility of further appropriation of intertie grant funds by the legislature is remote. However, as custodian of such a substantial amount of public money, AIDEA must be careful to preserve the legislature's plenary power of appropriation over all publicly held money. I am pleased to host a meeting with your negotiating committee on September 17 to discuss points raised in this letter and the next steps to take to accomplish the intent of the legislature. Sincerely yours, ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY Me 4 Ke Executive Director cc: Pat Ryan, Chief of Staff, Office of the Governor James Baldwin, Esq., Department of Law ALASKA INDUSTRIAL DEVELOPMENT y By AND EXPORT AUTHORITY 480 WEST TUDOR « ANCHORAGE, ALASKA 99503-6690 - (907) 561-8050 * FAX (907) 561-8998 DATE: 9 ff [73 TIME: NOTICE: This facsimile contains confidential information that is being transmitted to and is intended only for the use of the recipient named below. Reading, disclosure, discussion, dissemination, distribution, or copying of this information by anyone other than the named recipient or his or her employees or agents is strictly prohibited. If you have received this facsimile in error, please immediately destroy it and notify us by telephone, (907) 561-8050. PLEASE DELIVER THE FOLLOWING PAGES TO: Like folly , EVER \ A TRANSMITTING FROM: RICOH FAX 1000L (907) 561-8998 cs THIS TRANSMITTAL IS FROM: hale, cals, NUMBER OF PAGES (INCLUDING COVER PAGE): HARD COPY TO FOLLOW BY: Xx Regular Mail Courier No Documents will follow this transmission. IF YOU EXPERIENCE ANY PROBLEMS IN RECEIVING, PLEASE TELEPHONE THE OFFICE NUMBER (907-561-8050) AND ASK FOR LY . SPECIAL INSTRUCTIONS OR COMMENTS DOCSMS23/p9 ALASKA INDUSTRIAL DEVELOPMENT y AND EXPORT AUTHORITY 480 WEST TUDOR * ANCHORAGE, ALASKA 99503-6690 + (907) 561-8050 * FAX (907) 561-8998 September 13, 1993 Mr. Tom Stahr, General Manager Anchorage Municipal Light & Power 1200 E. 1st Avenue Anchorage, Alaska 99501 Dear Mr. Stahr: I have carefully reviewed the intertie grant agreements proposed by the utilities. I believe that the agreement provides an excellent definition of the steps necessary to satisfy the conditions set out in the grant appropriations made in ch 19, SLA 1993. The participating utilities have shown substantial good faith and concerted effort to reach this point. However, before the grant can be awarded, you must complete the participation agreement which is a key element to a _ conclusive determination that the preconditions to the grants have been satisfied. It is also necessary to resolve any uncertainty about constraints imposed by federal law on the ability of a cooperative electric utility to receive these grants. I have been advised by the Department of Law that the obligations set out in the proposed grant agreement and the yet to be prepared participation agreement may not be final and binding absent review and approval by the Alaska Public Utilities Commission. I would like the utilities position on the necessity for APUC review of the intertie grant and participation agreements. The final grant agreement must anticipate this circumstance so that we all understand the ramifications. Pending full satisfaction of the legislature's conditions, the Authority is prepared to request that the Department of Administration transfer custody of and responsibility for the grant to the Alaska Industrial Development and Export Authority. This means the intertie grant appropriations will be deposited in the revolving fund of AIDEA, where the money will be held and accumulate interest for the purposes of the grants. When the conditions to payment are satisfied, the amount appropriated plus any interest accrued while in the possession of AIDEA will be available for expenditure as provided in the final grant agreement. I further add that given the substantial preliminary agreement reached among the participating utilities, I have requested legal confirmation that grant funds held by the Authority can be expended on preliminary design, engineering and permitting work if the participating utilities think prudent. Tom Stahr - Letter September 13, 1993 Page Two During AIDEA custody of the grant appropriation, the grant agreement must provide that the utilities will not have a vested right to receive payment beyond amounts necessary to satisfy valid obligations incurred by the responsible utilities. The legislature would be able to appropriate the unencumbered and unobligated money from AIDEA for any valid public purpose. I believe the possibility of further appropriation of intertie grant funds by the legislature is remote. However, as custodian of such a substantial amount of public money, AIDEA must be careful to preserve the legislature's plenary power of appropriation over all publicly held money. I am pleased to host a meeting with your negotiating committee on September 17 to discuss points raised in this letter and the next steps to take to accomplish the intent of the legislature. Sincerely yours, ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY Executive Director cc: Pat Ryan, Chief of Staff, Office of the Governor James Baldwin, Esq., Department of Law ALASKA INDUSTRIAL DEVELOPMENT y by AND EXPORT AUTHORITY 480 WEST TUDOR « ANCHORAGE, ALASKA 99503-6690 * (907) 561-8050 + FAX (907) 561-8998 DATE: Z 3 / 63 TIME: NOTICE: This facsimile contains confidential information that is being transmitted to and is intended only for the use of the recipient named below. Reading, disclosure, discussion, dissemination, distribution, or copying of this information by anyone other than the named recipient or his or her employees or agents is strictly prohibited. If you have received this facsimile in error, please immediately destroy it and notify us by telephone, (907) 561-8050. PLEASE DELIVER THE FOLLOWING PAGES TO: Zon SJahr, benera/ Lar, ae LAG E PILEP TRANSMITTING FROM: RICOH FAX 1000L (907) 561-8998 on THIS TRANSMITTAL IS FROM: fh. lec Sne // NUMBER OF PAGES (INCLUDING COVER PAGE): Le HARD COPY TO FOLLOW BY: A Regular Mail Courier No Documents will follow this transmission. IF YOU EXPERIENCE ANY PROBLEMS IN RECEIVING, PLEASE TELEPHONE THE OFFICE NUMBER (907-561-8050) AND ASK FOR AA 4 . SPECIAL INSTRUCTIONS OR COMMENTS DOCSMS23/p9 ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY 480 WEST TUDOR * ANCHORAGE, ALASKA 99503-6690 + (907) 561-8050 * FAX (907) 561-8998 September 13, 1993 Mr. David L. Highers, General Manager Chugach Electric Association, Inc. P.O. Box 196300 Anchorage, Alaska 99519-6300 Dear Mr. Highers: I have carefully reviewed the intertie grant agreements proposed by the utilities. I believe that the agreement provides an excellent definition of the steps necessary to satisfy the conditions set out in the grant appropriations made in ch 19, SLA 1993. The participating utilities have shown substantial good faith and concerted effort to reach this point. However, before the grant can be awarded, you must complete the participation agreement which is a key element to a _ conclusive determination that the preconditions to the grants have been satisfied. It is also necessary to resolve any uncertainty about constraints imposed by federal law on the ability of a cooperative electric utility to receive these grants. I have been advised by the Department of Law that the obligations set out in the proposed grant agreement and the yet to be prepared participation agreement may not be final and binding absent review and approval by the Alaska Public Utilities Commission. I would like the utilities position on the necessity for APUC review of the intertie grant and participation agreements. The final grant agreement must anticipate this circumstance so that we all understand the ramifications. Pending full satisfaction of the legislature's conditions, the Authority is prepared to request that the Department of Administration transfer custody of and responsibility for the grant to the Alaska Industrial Development and Export Authority. This means the intertie grant appropriations will be deposited in the revolving fund of AIDEA, where the money will be held and accumulate interest for the purposes of the grants. When the conditions to payment are satisfied, the amount appropriated plus any interest accrued while in the possession of AIDEA will be available for expenditure as provided in the final grant agreement. I further add that given the substantial preliminary agreement reached among the participating utilities, I have requested legal confirmation that grant funds held by the Authority can be expended on preliminary design, engineering and permitting work if the participating utilities think prudent. David L. Highers - Letter September 13, 1993 Page Two During AIDEA custody of the grant appropriation, the grant agreement must provide that the utilities will not have a vested right to receive payment beyond amounts necessary to satisfy valid obligations incurred by the responsible utilities. The legislature would be able to appropriate the unencumbered and unobligated money from AIDEA for any valid public purpose. I believe the possibility of further appropriation of intertie grant funds by the legislature is remote. However, as custodian of such a substantial amount of public money, AIDEA must be careful to preserve the legislature's plenary power of appropriation over all publicly held money. I am pleased to host a meeting with your negotiating committee on September 17 to discuss points raised in this letter and the next steps to take to accomplish the intent of the legislature. Sincerely yours, ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORYSY Executive Director cc: Pat Ryan, Chief of Staff, Office of the Governor James Baldwin, Esq., Department of Law ALASKA INDUSTRIAL DEVELOPMENT y AND EXPORT AUTHORITY 480 WEST TUDOR * ANCHORAGE, ALASKA 99503-6690 « (907) 561-8050 + FAX (907) 561-8998 DATE: 7 LZ Ss TIME: NOTICE: This facsimile contains confidential information that is being transmitted to and is intended only for the use of the recipient named below. Reading, disclosure, discussion, dissemination, distribution, or copying of this information by anyone other than the named recipient or his or her employees or agents is strictly prohibited. If you have received this facsimile in error, please immediately destroy it and notify us by telephone, (907) 561-8050. PLEASE DELIVER THE FOLLOWING PAGES TO: Laue Meghers, ae Lar, LEA, De, TRANSMITTING FROM: RICOH FAX 1000L (907) 561-8998 OH THIS TRANSMITTAL IS FROM: Lh ley Snel/ NUMBER OF PAGES (INCLUDING COVER PAGE): ae HARD COPY TO FOLLOW BY: x Regular Mail Courier No Documents will follow this transmission. IF YOU EXPERIENCE ANY PROBLEMS IN RECEIVING, PLEASE TELEPHONE THE OFFICE NUMBER (907-561-8050) AND ASK FOR LLOL) : SPECIAL INSTRUCTIONS OR COMMENTS vA wag Spacek F Gpttccesen Ye DOCSMS23/p9 MEMORANDUM FROM: Dennis V. McCrohan Deputy Director (Bnerey ON DATE: August 2, 1993 SUBJECT: Draft Preliminary Agenda Bradley Lake & Existing Intertie Four Dam Pool —— 1. The Participating Utilities will be represented by Dave Highers and Ron Saxton for both Bradley Lake and the existing intertie. The Participating Utilities have not selected their representative for the new intertie. This project will not be discussed on August 10. 2. The Utilities will take the lead on identifying issues. There will probably not be an issue list provided by Ron Saxton prior to this meeting. 3. Attendees from AIDEA/AEA will be Jim Baldwin, Stan Sieczkowski, Brent Petrie, Riley Snell, Dennis McCrohan, and John Olson. Jim Baldwin will decide if additional legal assistance is necessary. 4. This meeting is expected to extend for approximately a half day. August _11, 1993 — FOUR DAM POOL 1. The Participating Utilities will be represented by Ron Saxton, Walter Sapp (Kodiak), and Dave Carlson (Petersburg). 2. The agenda will be the attached preliminary issue list prepared by Ron Saxton. Draft Preliminary Agenda August 2, 1993 3. Attendees from AIDEA/AEA will be Jim Baldwin, Stan Sieczkowski, Brent Petrie, Riley Snell, Dennis McCrohan, and John Olson. Jim Baldwin will decide if additional legal assistance is necessary. 4. The meeting is expected to extend for most of the day. DVM/sh Distribution: J. Baldwin, Department of Law W. Snell, AIDEA J. Olson, AIDEA B. Petrie, AEA 8. Sieczkowski, AEA R. Saxton, AWHDK 08/02/93 14:07. 503 226 0079 ATER WYNNE Ih (004/008 | if! ATER WYNNE l Suite 1800 HEWITT Pordand, Gregan 97206618 DODSON Fax (903) 226-0079 & SKERRITT ATTORNEYS AT LAW July 30, 1993 VIA FACSIMILE i L James Baldwin Assistant Attorney General State of Alaska, Department of Law Office of the Attorney General P. O. Box 110300 Juneau, AK 99811-0300 Dear Jim: As you and Riley requested, | have prepared a list of issues relating to the Four Dam Pool project which can serve as the basis for beginning our negotiations on these issues. The enclosed list is in outline form and simply identifies subjects which we will need to address and resolve, | can elaborate on each of these in whatever detail would be useful to you. Walter Sapp, Dave Carlson and | will meet with you and the AIDEA/AEA representatives at AIDEA at 9:00 on August 11th. We are prepared to spend the entire day with you, and hope to accomplish a review of these various issues sufficient to allow us to develop a timetable and process for addressing and resolving them. Seaute, Washington ‘Washington, D.C. San Francisca, California Affiliated offices in (206) 623-4711 (202) 785-0303 (415) 421-4143 Anchorage, Fairbanks Fax (206) 467-8406 Fax (202) 785-8676 Fax (415) 989-1263 and Juneau, Alaska 08/02/93 | 14:08- 503 226 0079 ATER WYNNE ATER WYNNE James Baldwin July 30, 1993 Page 2 005/008 _ Please give me a call before that time, so we can discuss how to make the day most productive. Thanks for your continuing cooperation. # Sincetély, Ronald L. Saxton Encl. cc: (w/encl.) Riley Snell, AIDEA Walter Sapp, Kodiak Dave Carlson, City of Petersburg Four Dam Pool Purchasing Utilities Tom Stevenson, Tom Waggoner, Ketchikan Larry Barnes, Jeff Jabusch, Wrangell Clayton Hurless, Fred Williams, Copper Valley Dave Carlson, Dennis Lewis, Petersburg Walter Sapp, Bill Beaty, Kodiak RLS\937der.ttr 08/02/93 A. 14:08 %503 226 0079 ATER WYNNE 006/008 FOUR DAM POOL ISSUE LIST Power Sales Agreement (4DP PSA) Issues. No amendments to 4DP PSA are needed. However, the parties to the 4DP PSA have several times entered into Memorandums of Understanding (MOUs) “clarifying” various sections of the 4DP PSA. Each existing MOU should be reviewed: 1. 6/5/86 MOU regarding PMC obligation for AEA A&G costs will need revision.or replacement recognizing reduced AEA role. 9/1/87 MOU providing for final expenditure of remaining construction funds does not need revision, but may need changes in implementation responsibility and will need status report and accounting. 4/8/88 MOU on capital asset ownership and contro! probably needs no changes. 4/17/89 "Agreement for Satisfaction of Insurance Cost Payment Obligation and Concerning Risk Allocation" expires at end of current fiscal year and requires renewal or replacement. 1/9/91 Memorandum of Agreement for financing certain O&M expenses does not need revision unless AEA will be unable to perform, 4/11/91 MOU on uses of R&R Fund should not require any changes. Initial Project Revolving Loan Fund Terms and Conditions (Exhibit A to City of Petersburg v. AEA Settlement Agreement) requires no changes. In addition to reviewing all existing “interpretive agreements" and modify some of them, it would be useful to enter an additional MOU addressing additional issues requiring clarification, such as: ie AEA voting rights on PMC (scope of AEA "veto," identification of issues where AEA not entitled to vote). = 1s 08/02/93 14:08 %503 226 0079 ATER WYNNE 007/008 Responsibility/funding mechanism for non-R&R capital expenditures, both non-discretionary (e.g., required by new environmental or safety laws) and “discretionary” (e.g., larger warehouse). Mechanism for addressing State’s PSA § 4(d) obligations. a. Tyee transmission b. foreseeable R&R Fund shortfalls Gs standards for use of self-help provision Other Issues. qi: as AEA/AIDEA reimbursement of 4DP transition expenses. Commerce Loan Agreement. Modification of debt service obligation as mechanism to address other issues. Protection for 4DP purposes of various funds held by AEA. - Initial Project Revolving Loan Fund ($1,070,000) (created by May 21, 1991 Settlement Agreement from City of Petersburg v. AEA) - Renewal and Replacement Reserve within Power Development Revolving Loan Fund (different than R&R Fund held by 4DP PMC) ($2,100,000) - 4DP Self-Insurance Reserve ($10,400,000) - 4DP "Construction Funds" - (less than $2,000,000 committed, but not entirely expended on construction projects approved by PMC) Status of AEA funding from appropriations and/or PDRLF (approximately $600,000) for operation. =(9)- Vorus. wo da.uy 10. ale 12. 13. 14. Wj UUS/ UUs Gove 440 YULY ALON WiANE Completion of individual O&M contracts. Identification of services provided by AEA (engineering, accounting, etc.) and identification of new responsible party. Responsibility for FERC filing. Records management. Status and responsibility for various project “studies". Inventory of current R&R and insurance projects. Technical standards implementation (standardized maintenance program). Status of respective project acquisition agreements. Operational issues: AEA has been an active participant in arranging services, coordinating materials acquisition, retaining contractors, etc. Each operator has specific concerns in these regards. -3- ALS\91Baer.ist 08/02/93 14:06 503 226 0079 ATER WYNNE 002/008 ATER WYNNE ~ Suite 1800 HEWITT Porland, Oregon 97201-5618 DODSON Pax (503) 126-0079 & SKERRITT ATTORNEYS AT LAW July 30, 1993 VIA FACSIMILE James Baldwin Assistant Attorney General State of Alaska, Department of Law Office of the Attorney General P. O. Box 110300 duneau, AK 99811-0300 Dear Jim: This will confirm that David Highers and | will be meeting with you and Riley at 9:00 a.m. on Tuesday, August 10th, at the AIDEA offices for the purpose of discussing the Bradley Lake Project and the existing intertie. Mr. Highers and | are the designated representatives of the Railbelt Utilities Group for these two matters. We will be prepared to discuss in a general manner the issues relating to Bradley Lake and the existing intertie that are raised by the changes to AEA. It is our expectation that this meeting will last only until noon, and that the purpose of it will be to identify issues and agree on a format and schedule for proceeding. Prior to our meeting, | will provide an outline of issues, similar to that provided to you for the Four Dam Pool projects under separate cover. {t is not our intention to discuss plans for the new interties at the August 10th meeting. As | have indicated to Riley, the Railbelt managers have asked that David Highers, Tom Stahr and Mike Kelly join me as the Searde, Washington Washington, D.C. San Francisco, California Affiliated offices in (206) 623-4711 202) 785-0303 (415) 421-4143 Anchorage, Fairbanks Fax (206) 467-8406 Fax (202) 785-8676 Fax (415) 989-1263 and Juneau, Alaska 08/02/93 «44:07 503 226 0079 ATER WYNNE 1 j IP 003/008 ATER WYNNE James Baldwin July 30, 1993 Page 2 negotiating team for these issues. When the utilities are ready to proceed with these discussions, | will contact you to schedule such a meeting. Thanks for your continued cooperation. Sincer Ronald L. Saxton cc: Riley Snell, AIDEA David Highers, CEA Railbelt Utilities Group Managers David Calvert, Seward Kenneth Ritchey, MEA David Highers, CEA Norman Story, HEA Michael Kelly, GVEA Thomas Stahr, ML&P Robert Hufman, AEG&T Vince Mottola, FMUS e ALS\938der.hr ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY 480 WEST TUDOR * ANCHORAGE, ALASKA 99503-6690 + (907) 561-8050 » FAX (907) 561-8998 4 a4 / DATE: (3 fF pe jhfes ay TIME: (i NOTICE: This facsimile contains confidential information that is being transmitted to and is intended only for the use of the recipient named below. Reading, disclosure, discussion, dissemination, distribution, or copying of this information by anyone other than the named recipient or his or her employees or agents is strictly prohibited. If you have received this facsimile in error, please immediately destroy it and notify us by telephone, (907) 561-8050. PLEASE DELIVER THE FOLLOWING PAGES TO: b. Llac Ss: Stecz Kowss. TRANSMITTING FROM: RICOH FAX 1000L (907) 561-8998 THIS TRANSMITTAL IS FROM: Lenns Le Leohan NUMBER OF PAGES (INCLUDING COVER PAGE): LO HARD COPY TO FOLLOW BY: Regular Mail Courier X__ No Documents will follow this transmission. IF YOU EXPERIENCE ANY PROBLEMS IN VING, PLEASE TELEPHONE THE OFFICE NUMBER (907-561-8050) AND ASK FOR Li——— . SPECIAL INSTRUCTIONS OR COMMENTS Z. Muiage 222 Leepuat fo, [1 , LIZ DOCSMS23/p9 DUTIES, RESPONSIBILITIES, AND OBLIGATIONS FOR ALASKA INTERTIE 1.0 Intertie Agreement 2.0 1.1 1.2 1.3 1.4 1.5 1.6 Lad 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 Own facilities. Member of IOC. Determine debt service coverage. Make additions, deletions, or changes to the Intertie and evaluate changes recommended by utilities. Approve changes to maximum intertie transfer capability and reduce capability as necessary for maintenance, failure, or safety reasons. Guarantee right for transfer of Bradley Lake power. Provide construction power for Susitna. Estimate and budget costs including maintenance, operation, debt service, and AEA administration costs and submit to AEA Board. Receive usage estimates from utilities. Prepare an annual usage estimate. Receive reimbursement from utilities for reimbursements. End of year reconciliation. Maintain intertie to Prudent Utility Practice. Receive operating budgets, prepare for I0C, establish final budget. Reimburse AML&P and GVEA for operation. Submit operations budget to legislative and assure appropriation. Suspend operator if directed by I0C. Receive operating financial statements and records or collect from operators if necessary. Maintain or contract for maintenance of intertie. Prepare maintenance budgets and maintenance records as per FERC. Own metering facilities. Concurrence with participants on insurance. Matanuska Services Agreement 2.1 2.2 Cause to operate with Prudent Utility Practice. Receive revenues for service and collect financial data as required. 2.3 Reimburse Matanuska for maintenance. 2.4 Coordinate all maintenance scheduling. 3.0 Chugach Maintenance Agreement 3.1 Receive revenue metering data. 3.2 Purchase additional metering and protective relaying as required. 3.3 Receive and maintain "as built" records. 3.4 Receive inspection reports. 3.5 Receive maintenance budgets, make payment for maintenance, and notification on billing dispute. 3.6 Approval of extraordinary maintenance and equipment replacements. Reimbursement for expenses. 3.7 Concurrence vote with CEA for repairs, modifications, relay settings, and meeting changes. 3.8 Review and approve CEA insurance. 3.9 Perform work CEA is unable to perform. 3.10 Audit CEA as necessary. 3.11 Cross indemnity for liability. 4.0 GVEA Maintenance Agreement 4.1 Own facilities. 4.2 Receive changes and maintain "as built" records. 4.3 Receive inspection reports. 4.4 Receive reports on protective relay actions and direct addition of relay apparatus. 4.5 Receive failure reports. 4.6 Receive revenue metering data. 4.7 Receive and concur with maintenance plan, schedule, and budget. Reimburse for labor, materials, equipment, supplies, training, an administration. End of year reconciliation. 4.8 Provide Special tools for maintenance. 4.9 Provide approval for alterations, relay settings, or meter changes. 4.10 Perform work GVEA is unable to perform. 4.11 Audit as necessary. 4.12 Approve extra ordinary disbursements. 4.13 Collect data for financial statements if not available. 5.0 Special Items 5.1 Status of Municipality of Anchorage Maintenance Agreement. 5.2 Structural problems. 5.3 Temporary fix on line 5.4 Interactive data base maintenance. State of Alaska N\ Walter J. Hickel, Governor Alaska Energy Authority A Public Corporation July 16, 1993 Mr. Bradley Evans, Chairman Alaska Intertie Committee Golden Valley Electric Association P.O. Box 71249 Fairbanks, Alaska 99707 Subject: Representation on Alaska Intertie Committee by Alaska Energy Authority Dear Mr. Evans: Effective July 16, 1993, Mr. Dennis V. McCrohan will be the Energy Authority's Committee representative, with Mr. Brent Petrie as the alternate. This representation will continue until further notice. Sincerely, Ronald A. sl Executive Director /tg cc: ‘ee RiabbeReADEA. Mr. Dennis McCrohan, EA Mr. Tim McConnell, Municipal Light & Power Mr. Tom Lovas, Chugach Electric Association Mr. Sam Mathews, Alaska Electric Generation & Transmission Cooperative Mr. Vincent Mottola, Fairbanks Municipal Utilities System Mr. Afzal Khan, Alaska Energy Authority Mr. Brent Petrie, Alaska Energy Authority Ms. DeAnna Scott, Alaska Energy Authority PO. Box 190869 701 East Tudor Road Anchorage, Alaska 99519-0869 (907) 561-7877 Fax: (907) 561-8584 HEWITT ass cite Portland, Oregon 97201-6618 DODSON COPY ms Sa & SKERRITT = ATTORNEYS AT LAW July 30, 1993 VIA FACSIMILE James Baldwin Assistant Attorney General State of Alaska, Department of Law Office of the Attorney General P. O. Box 110300 Juneau, AK 99811-0300 Dear Jim: This will confirm that David Highers and | will be meeting with you and Riley at 9:00 a.m. on Tuesday, August 10th, at the AIDEA offices for the purpose of discussing the Bradley Lake Project and the existing intertie. Mr. Highers and | are the designated representatives of the Railbelt Utilities Group for these two matters. We will be prepared to discuss in a general manner the issues relating to Bradley Lake and the existing intertie that are raised by the changes to AEA. It is our expectation that this meeting will last only until noon, and that the purpose of it will be to identify issues and agree on a format and schedule for proceeding. Prior to our meeting, | will provide an outline of issues, similar to that provided to you for the Four Dam Pool projects under separate cover. It is not our intention to discuss plans for the new interties at the August 10th meeting. As | have indicated to Riley, the Railbelt managers have asked that David Highers, Tom Stahr and Mike Kelly join me as the Seattle, Washington Washington, D.C. San Francisco, California Affiliated offices in (206) 623-4711 (202) 785-0303 (415) 421-4143 Anchorage, Fairbanks Fax (206) 467-8406 Fax (202) 785-8676 Fax (415) 989-1263 and Juneau, Alaska » ~~ ATER WYNNE James Baldwin July 30, 1993 Page 2 negotiating team for these issues. When the utilities are ready to proceed with these discussions, | will contact you to schedule such a meeting. Thanks for your continued cooperation. Sincer Ronald L. Saxton cc: “Riley Snell, AIDEA David Highers, CEA Railbelt Utilities Group Managers David Calvert, Seward Kenneth Ritchey, MEA David Highers, CEA Norman Story, HEA Michael Kelly, GVEA Thomas Stahr, ML&P Robert Hufman, AEG&T Vince Mottola, FMUS RLS\938der.Itr SENT 8Y: + 6-17-93 +; 13:42 + AK ENERGY AUTHORITY 907 561 8998; 1 LG ad - ThO l A Fax From The Alaska Energy Authori, A Public Gerporation of the Stata of Alaska | abe Th Micke Gomme Ronald A. Gardni, Executive Director Maili q al Alaska Energy Authori Alaska Energy A i P.O. Bax 190869 : 701 East Tudor Road, znd Floor Anchorage, AK 99519-0869 Anchorage, AK 99503 Main Telephone Number (907) 561-7877 Fax Number (907) 561-8584 Deliver Fax to: Company Name: i 1p. Company Address: Fax Phone #: Sel- 8498 | Sender: Terri for Ronald A. Garzini | Sender's Phone # 261-7256 i # of Pages Sent: Three (3) (Including this cover sheet) Date Fax Sent: June 17_ 1993 1 AMMA ' | Um dn et SO gee ee INSTRUCTIONS TO FAX RECIPIENT:___ORIGINAL TO FOLLOW BY MAIL. july|7| Utility and AEA Operations Meeting at the Alaska Energy Authority, | TUE UA NPINTT RTT TIFTDPITNT TILT TLLEEIN TN TITTNTTTN MMT TTF EDTT TNT PEER aE. 1 1 SENT BY: + 6-17-93 + 13:42 + AK ENERGY AUTHORITY> 907 561 6998;# 2 Alaska Energy Authority MEMORANDUM DATE: June 17, 1993 | TO: Bradley Project Management Committee Members | Four Dam Pool Members Vince Motolla, Fairbanks Municipal Utilities Systems Bob Hufiman, Alaska Electric Generation & Transmission Cooperative | Bob Martin, Tlingit-Haida Regional Electrical Authority | Charlie Walls, Alaska Village Electric Cooperative, Inc. Diane Rabb, Rural Alaska Power Association | Dave Hutchens, Alaska Rural Electric Cooperative Association, Inc, | Brad Reeve, Alaska Systems Coordinating Council FROM: Ronald A.Garzini p,,/” | Executive Director (ee Alaska Energy Authority SUBJECT: Utility and AEA Operations | At the request of several managers, we have rescheduled a meeting to | discuss the implementation of recent legislative actions that affect the Energy Authority and the existing State-owned energy projects. We will not be discussing new intertie financing nor operations of individual projects such as Bradley Lake. We will present an outline of AEA functions, financing activities and projects underway... We will talk in detail about the provisions of the dismemberment act and plans and timetables to effect the requirements of the act. Once the details are well-known we will discuss some possible new roles for the utility industry. It is our hope that these discussions can assist in a more efficient transition, and make sure no worthwhile functions are lost. The meeting is scheduled for July 7, 1993, from 9:30 a.m. to 4:00 p.m. in the Alaska Energy Authority conference room at 701 East Tudor Road. 9IQIUAAIG(I) —— ——$— ——— - ——- —; = es SENT BY: + 6-17-93 + 13:42 + AK ENERGY AUTHORITY> 907 561 8998+% 3 Subject: Utility and AEA Operations Tune A 7, 1993 | | The tentative schedule is: 9:30 a.m, - 12:00 p.m. AEA Functions and project requirements 12:00 p.m. + 1:00 p.m. Lunch 1:00 p.m. - 2:00 p.m. Work Session 2:00 p.m. - 2:15 p.m, Break 2:15 p.m. - 3:00 p.m. Work Session | 3:00 p.m. - 4:00 p.m. Conclusions Please confirm the company representatives to Terri Ganthner at 261-7256 | by June 30. : As a related reminder the Four Dam Pool PMC has scheduled their next meeting for July 8 at the Alaska Energy Authority offices. | SES:ja cc: Brent N. Petrie, Alaska Energy Authority Stanley E. Sieczkowski, Alaska Energy Authority Gloria Manni, Alaska Energy Authority Dave Eberle, Alaska Energy Authority Herv Hensley, Alaska Energy Authority 93Q2A4916(2) State of Alaska N Walter J. Hickel, Governor Alaska Energy Authority A Public Corporation July 16, 1993 Mr. Bradley Evans, Chairman Alaska Intertie Committee Golden Valley Electric Association P.O. Box 71249 Fairbanks, Alaska 99707 Subject: Representation on Alaska Intertie Committee by Alaska Energy Authority Dear Mr. Evans: Effective July 16, 1993, Mr. Dennis V. McCrohan will be the Energy Authority's Committee representative, with Mr. Brent Petrie as the alternate. This representation will continue until further notice. Sincerely, Ronald A. dbo. Executive Director /tg cc: Mr. Riley Snell, AIDEA Mr. Dennis McCrohan, AIDEA Mr. Tim McConnell, Municipal Light & Power Mr. Tom Lovas, Chugach Electric Association Mr. Sam Mathews, Alaska Electric Generation & Transmission Cooperative Mr. Vincent Mottola, Fairbanks Municipal Utilities System Mr. Afzal Khan, Alaska Energy Authority Mr. Brent Petrie, Alaska Energy Authority Ms. DeAnna Scott, Alaska Energy Authority PO. Box 190869 704 East Tudor Road =Anchorage, Alaska 99519-0869 (907) 561-7877 Fax: (907) 561-8584 "992/93 14:06 503 226 0079 ATER WYNNE @ 002/008 | ALA bredfeg ka ATER WYNNE ae HEWITT Portland, Oregon 97201-6618 503) 226- DODSON Fax (503) 226-0079 & SKERRITT ATTORNEYS AT LAW July 30, 1993 VIA FACSIMILE James Baldwin Assistant Attorney General State of Alaska, Department of Law Office of the Attorney General P. O. Box 110300 Juneau, AK 99811-0300 Dear Jim: This will confirm that David Highers and | will be meeting with you and Riley at 9:00 a.m. on Tuesday, August 10th, at the AIDEA offices for the purpose of discussing the Bradley Lake Project and the existing intertie. Mr. Highers and | are the designated representatives of the Railbelt Utilities Group for these two matters. We will be prepared to discuss in a general manner the issues relating to Bradley Lake and the existing intertie that are raised by the changes to AEA. It is our expectation that this meeting will last only until! noon, and that the purpose of it will be to identify issues and agree on a format and schedule for proceeding. Prior to our meeting, | will provide an outline of issues, similar to that provided to you for the Four Dam Pool projects under separate cover. It is not our intention to discuss plans for the new interties at the August 10th meeting. As I have indicated to Riley, the Railbelt managers have asked that David Highers, Tom Stahr and Mike Kelly join me as the Searde, Washington Washington, D.C. San Franciseo, California Affiliated offices in (206) 623-4711 Q02) 785-0303 (41S) 421-4143 Anchorage, Fairbanks Fax (206) 467-8406 Fax (202) 785-8676 Fax (413) 989-1263 and Juneau, Alaska {41003 /008 “092/93 14:07 = 503. 226 0079 ATER WYNNE ely ATER WYNNE James Baldwin July 30, 1993 Page 2 negotiating team for these issues. When the utilities are ready to proceed with these discussions, | will contact you to schedule such a meeting. Thanks for your continued cooperation. Sincer Ronald L. Saxton cc: Riley Snell, AIDEA David Highers, CEA Railbelt Utilities Group Managers David Calvert, Seward Kenneth Ritchey, MEA David Highers, CEA Norman Story, HEA Michael Kelly, GVEA Thomas Stahr, ML&P Robert Hufman, AEG&T Vince Mottola, FMUS r ALS\938der.hr