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HomeMy WebLinkAboutFar North Utilities 1985R.E. Etheridge May 24, 1985 Associate Executive Director of Projects Jerry Larson Inspection & Review of Project Manager/ Loan Application, Far Rural Projects North Utilities Central, Alaska The Construction Department was directed to conduct a critical engineering review of the loan application for the new electric system at Central. Doug MacArthur conducted a field survey of the project May 13, 1985. The inventory, description of facilities and photograph coverage are attached for your reference. The photo coverage shows an extensive use of used equipment. The diesel generators, Caterpillars, are overhauled with zero time since overhaul. This should make the engine as new with pistons, rings, and Slegues . It should be noted, however, that both the D353 and 0343 engines are no longer in production by the Caterpillar Company. There have been large quantities of these model’ engines in Alaska and there are many parts still available. ruye oe It is expected that these units should be retired in no longer than 10 years, and replaced with more modern, higher efficiency engines. It is doubtful $200,000 worth of equipment, buildings, and tanks are presently in place at this time. With this in mind, it is recommended that a construction cost estimate be presented to the Alaska Power Authority from the borrower with a breakdown on cost of major expenses. Also, we have been informed that a line exten- sion may be constructed from Central to Arctic Circle Hot Springs on an overt line with a pole share agreement with United Utilities. The Power Authority should request a supplemental economic forecast on the additional load and what effect this load will have on the equipment sizing and KWH cost. The loan document states the cost of power at 67¢/KWH. This cost seems unnecessarily high, but the load forecast is low. With Circle Hot Springs on line, the KWH sales still increases with the same generators thereby reducing the cost per KWH. JL/cde Far North Utilities Loan Application On-Site Survey Contact Persons: Joe Gilbertson 456-6407 (Fairbanks) Cliff and Paula Eller 279-2486 (Anchorage) George Hiller ---- (Centrai) LAND STATUS The 330' x 660' lot has been quit-claimed by its owner, George Hiller, in favor of FAR NORTH UTILITIES in Fee. The lot is cleared and filled with approximately two feet of gravel. BUILDING The building is a 40' wide x 60' long x 16' eave height pre-manufactured wood structure, built for Prudhoe Bay wind and snow load design. The building foundation is a 2"x8" mudsil] resting on gravel fill. The walls are built with 2"x6" x 16' high x 8' wide R-19 insulated panels. The roof is built with 2"x4" x 8' wide x 23' long (approximate length) R-11 insulated panels. There are no lights/outlets/etc. in the building, nor is there a finished floor (it is a gravel floor). The front door is a sliding double door type which is installed, as are three man-sized doors. The roof panels are covered with corrugated aluminum panels. The building withstood a 4' standing depth snow load all winter and recently withstood a 40 knot (approximate) wind loading. FUEL STORAGE TANKS There are two 10,060 gallon storage tanks installed on site with a retainer dike and liner, also installed. The fuel inlet line is installed and the fuel line to the daytank location is 80% complete. There is no day tank or pump installed and there are no fuel supply lines to the generators. GENERATORS Generator #1 is a rebuilt Caterpillar 353D MODEL 0353D VOLTS 2400 30 RPM 1200 CYCLES 60 No. of LEADS 4 STANDARD RATING 312 kVA 250 kw -6 PF 75 AMPS EXCITATION 77 VOLTS 53 AMPERES GENERATOR FRAME #683 GENERATOR PART #5L3903 GENERATOR SERIAL #250SN14 HOBS METER READING (at time of inspection) 00000. This generator is mounted on timber skids with radiator. There is no exhaust system. The generator is recently rebuilt, but has not been load-bank tested. Generator #2 is to be a rebuilt INTERNATIONAL. The rebuild has not been accomplished on this generator yet and rio other data is avail- able. It will be of 2200 VOLTAGE. The generator is now in FAIRBANKS. Generator #3 is a rebuilt Caterpillar 343D MODEL D343D RPM 1800 CYCLES 60 GENERATOR FRAME # 449 GENERATOR PART #7L25 GENERATOR SERIAL #200TH883 3 9 - 10 WIRE STANDBY RATING 312 kVA 250 kw .& PF LOW CONNECTION 125/216 VOLTS 835 AMPS LOW CONNECTION 230 VOLTS 784 AMPS HIGH CONNECTION 460 VOLTS 392 AMPS EXCITATION 57 VOLTS 65 AMPS HOBS METER READING (at time of inspection) 00007. This generator is mounted on Timber skids with radiator. There is no exhaust system. The generator is recently rebuilt and Load-bank tested for seven hours. Generator #4 is a Detroit Diesel, and is presently in the process of being rebuilt. It is a V-12, 300kw which will be used for standby power when put into service. SWITCH GEAR This equipment is located in North Pole and was not. available for the on-site inspection. BATTERIES Both batteries are of a lead acid type. One is new and the other is used. A third battery is necessary but has not yet been purchased. GENERAL There is approximately 10,000' of Anaconda underground armored cable on spools, on-site. The project could be complete within 90-120 days of notice to proceed (estimated). POWER/FUEL USE There are 16 permanent people using power all year. These people use approximately 118 kw year around. The total load all year is 163 kw with a total year's fue! consumption of 66,020 gallons. The following list shows the potential customers and their power generation and fuel consumption. This list was compiled by George Hiller of Far North Utilities. * NPWNrH *6. *8. 10. ll. 12. 14. Is. 16. 17. 18 *20 *21 *22 #23 *24, 25. 26. #27. *28. *29, 30. Ie aes 33. . Spears 39: 36. *37 2 38. 39. 40. 2 9 *19, NAME Andy Bergsson Williams Jeglum Eddie O'Leary Hardenbrook 0.0.T. BLM Crabbs Mary Lou Doloris Hutchson Symons Museum Carl Johnson Pete Hardenbrook Scrub & Tub Jackson Cass Richards Centra! Lodge School Madona Galvin E. Galvin S. Scott Frank Warren _ Jim Carson Pat Oaks Post Office Jim Wilde Servance Jack Brook Phillips Arden Hiller Audrey Grise Dunlap Bisline Williams GEN. CAPACITY FUEL CONSUMPTION HOURS OF OPERATION 4 kw 1000 gal./6 mos. 24 hr./day SUMMER ONLY 4kw 1000 gél./6 mos. INTERMITTENT SUMMER ONLY NO POWER SUMMER ONLY NO POWER SUMMER ONLY NO POWER 2 @ 20 kw 8000 gal./6 mos. 24 hr./day 60 kw 7200 gal./6 mos. 24 hr./day 20 kw 4300 gal./year 24 hr./day 4 kw 1000 gal./6 mos. 24 hr./day SUMMER ONLY 4 kw 1000 gal./6 mos. 24 hr./day 4 kw 1000 gal./year 24 hr./day SUMMER ONLY SUMMER ONLY 20 kw 4300 gal./year 24 hr./day 4 kw 2000 gal./year 24 hr./day 4 kw 2000 gal./year 24 hr./day SUMMER ONLY 15 kw 4000 gal./year 24 hr./day 22 kw 6600 gal./year 24 hr./day 4 kw 1000 gal./6 mos. 24 hr./day 6 kw 3000 gal./6 mos. 24 hr./day Combined use of 6 kw POWER PLANT 4 kw 1000 gal./6 mos. 24 hr./day NONE 4 kw 1000 gal./6 mos. 24 hr./day Combined use of CRABBS' 20 kw GENERATOR (listed above) 3 kw 500 aal./year INTERMITTENT NONE SUMMER ONLY NONE SUMMER ONLY NONE SUMMER ONLY 3 kw SUMMER ONLY NONE 3 kw INTERMITTENT INTERMITTENT 4 kw 1000 gal./6 mos. NONE SUMMER ONLY NONE SUMMER ONLY NONE of TRACE ASS 102? C1 LAE FR LocAFrenw é ATco TRAILER Cor STALLED ) 3 DA\VE way Poe EEE sToR. | aeN ; GEN - GEN. *\ 1 *2 | rs | 1 \ | a 4 rr ace zal \ ! \ foroser -—— (? | RLOTFOSED SWITCH -GEAE { | | LOCATION OF LOCATION PLOFoSED SOO | | Gav. DAY TANK ; _— | - ~ ~| Q | RY | \ \ oe Sunice ABeAw | MAN Man eee 32! = pDookRe co 4 ee — os BuiL- Din MAN io! ai! FAR NORTH UTILITIES P.O. BOX 876 PALMER, AK 99645 A survey done at Central in 1980 and updated in 1983, showed that the community had an installed capacity for electrical generation of approximately 225 KW. With a fuel usage of 67,000 gallons, approximately 670,000 KWH would be produced. Realizing that all generators would not be fully loaded all the time and that the fuel usage may have been high for the generation of power, we used average usage from companies operating in the same type of towns and villages. This projection brings the average of use to about 200,000 KWH per year with a fuel usage of about 25,000 gallons. These figures are what we based our computations on and may be conservative as compared to what our survey produced. With the savings of fuel, and the convenience of having a dependable and adequate power supply, we believe that the project is feasible and desirable. See enclosed material. commercial commercial commercial commercial commercial commercial commercial commercial commercial commercial commercial Andy Bergsson Red Williams Jeylum Eddy O'Leary Pete Harden Brook D. O. T. BLM Crabbs Corner Pat Oaks Post Office Jim Wilde Mary Lou Dolores Hutchson Richard Symons Museum Carl Johnson Pete Harden Brook Scrub & Tub Jack Jackson Mort Cass Richards Central Lodge Alascom United Utilities Tel. Central School Madona Hartly Far North Market Ed Galvin S Stan Galvin Scott _S Frank Warren Jim Carson Servance Jack Brock Arden Browen Dennis Philps Lee Spears Anuderw 4 KW Summer only 4 KW Summer only no power Summer only no power Summer only no power 2 30 KW 1 60 KW 20 KW 4 KW Combined ser- vices from Crabbs Corner Combined ser- vices from Crabbs Corner 4 KW Summer only no power 4 KW 4KW Summer only no power Summer only 20 KW 4 KW Combined off Jackson Summer only 2-15 KW Combined off Central Lodge 2 KW 2 22 KW 4 KW Not in opera- tion of Madona 6 KW 4 KW No power 3. KW Summer only no power Summer only no power Summer only no power 4 KW has not run in 6 years. 3 KW 2000za1. per year 24/hr day 1000 gal per year 12,000 per year 24/hr day 12,000 per year 24/hr day 4,300 per year 24/hr day 2,000 per year 24/hr day 2,000 per year 24/hr day 24/hr day 24/hr day 2,000 per year 1,000 per year 7 months 4,300 per year 7months/24hrda 2,000 per year 24/hr day 5 AISI yt; 24/hr day 500 gal per yr. 24/hr day 8,000 gal per yr. 24 hr. 24hr day/ 8 mos day 1,000 per yr. 3,000 per yr 24/hr day 2,000 per yr. 24/hr day 500 per yr Intermittent Sue Grise 4 KE 2,000 per yr 24/hr day Jim Dunlap Summer only Earl Bisline Summer only George Hiller Summer only now, full time Bart Sharp Summer only 67,075 Gallons, total, used in one year. 225 KW in Central now. There will be 55 meter bases projected. Crabbs will have three. Central Lodge will have five. Modona Far North Market will have two. Scrub and Tub will have two. Ed Galvin's shop will have one. 1. There is planned a locater beacon for Central Air Port. the chance of lighting. 2. BLM is planning to operate year round. 3. There are 19 permanent places. and also FINANCIAL STATEMENT INDIVIDUAL FORM TO: ALASKA NATIONAL BANK OF THE NORTH Branch Borrower Far North Utilities/ Partner J. Clifton Eller Date _ 1/11/85 Address P.O. Box 876 Palmer, Alaska 99645 Co-Borrower Date Address IMPORTANT: READ THE FOLLOWING BEFORE COMPLETING THIS FORM 1. The Borrower of Co-Borrower must indicate on this statement property owned and debts owed using symbols “B" for Borrower; “C” for Co-Borrower, ‘’J’’ for Jointly Held by Borrower and Co-Borrower; ‘‘O”’ Jointly held by Borrower or Co-Borrower and another party. 2. Round figures to nearest hundred dollar amount. 3. Fill in all blanks, writing ‘‘no’’ or ‘‘none’’ where necessary to complete. For the purpose of obtaining advances from time to time on bills, notes and other commercial paper signed or endorsed by the undersigned, and of obtaining credit generally, the undersigned makes the following statement of financial condition as of the close of business on the day of 19 , and certifies to the above-named bank that the information hereinafter set forth is in all aspects true, accurate and complete and correctly reflects the financial condition of the undersigned on the date aforementioned. ASSETS LIABILITIES By: By: Cash in ANB lst National Bank $ Notes payable due within | $ Cash on hand and in other banks MYFCU one year (see schedule C) __| Notes receivable due within one year Open accounts past due | Less: Reserve for bad debts Total payments due within one year U.S. bonds or notes on real estate and chattel mortgages 25,152.00] Other listed securities (see schedule A) to relatives | Other current assets treme) Other current liabilities (itemize) 6,480.00 TOTAL CURRENT ASSETS TOTAL CURRENT LIABILITIES $ 31, 632.00 | Notes receivable due after one year 18000.00 | Chattel mortgages - remaining portion Real Estate (see schedule B) 814000.00 | Real estate mortgages - remaining portion SIT, 000. Unlisted securities (see schedule A) | Notes payable due after | Personal assets (itemize) Investment 12500.00 one year (see schedule C) 11,000. Motor home 20000.00 | Other term liabilities (itemize) Gagi lilac 1983 Other assets (itemize) Aj | TOTAL TERM LIABILITIES [p22 ,000 .00 _(2) Generators TOTAL LIABILITIES $553,632.00 Inventory RTH 536,368.00 TOTAL NON-CURRENT ASSETS | TOTAL ASSETS $1 ,090000.00 TOTAL $1 ,090000.0 CONTINGENT LIABILITIES | Liability as endorser on notes of others All other contingent liabilities (itemize) Liability as guarantor on notes of others Liability for judgments or suits pending TOTAL CONTINGENT LIABILITIES ANNUAL INCOME AND EXPENSES FROM TO INCOME DERIVED FROM ALIMONY, CHILD SUPPORT, OR SEPARATE MAINTENANCE PAYMENTS DO NOT NEED TO BE REVEALED UNLESS IT IS TO BE CONSIDERED FOR REPAYMENT OF THIS OBLIGATION. INCOME EXPENSE Salary per _yr $__80000.00 | Personal living expense | |s__ 2000.00 Rentals e\= Mortgage and contract payments 2636.00 Dividends Upkeep on real estate Interest Taxes and assessment: Other income: Interest included Other expense: TOTAL INCOME TOTAL EXPENSE ig 4,636.00 AN® 960 579 **Also have ownership in Yukon Telephone Company, Inc. and Tanana Power Company, Inc. “. . ¥ OTHER LISTED AND UNLISTED SECURI’ — SCHEDULE A Description a Listed On Market Value Cost | T — Total Cost of Securities $ REAL ESTATE — SCHEDULE B Location and Owned Year Cost Assessed Fire Present Mortgages Description By __|Purchased ° Value Insurance Value Orig. Bal Pres. Bal. Palmer Home 1978 |62500 | 92000. 100000 | 100000 | 55000 _| 51000 _[anana_ House Rental 1961 120000 100000 North Carolina House & 67 acres | 1961 | 8000 | 54000 Boulder Co.-Condo {1983 172000 | 76000— 80000 Whittier-Building 1984 400000 400000 400000. saa AGS Re naa name? 1971 147000 200000 If not, in whose name?_Clifton or Paula = If joint, state with whom? Clifton, Paula (condo) Donald NOTES PAYABLE — SCHEDULE C Name of Creditor ny Collateral When Due Rall Amount Ist Federal Savings 638.00 | GMAC 540.00 | Citicorp 819 00 1 Nati LB in B Total Notes Payable $ GENERAL INFORMATION Age 55 MARITAL STATUS (Do not complete if this statement is submitted for individual unsecured credit.) BORROWER [X] MARRIED SEPARATED [[] UNMARRIED (including single, divorced, and widowed) CO-BORROWER MARRIED SEPARATED (J UNMARRIED (including single, divorced, and widowed) Names of banks in which you carry accounts__1st National Bank of Anc./Palmer Branch MVFCU Names of banks from which you have borrowed MVFCU, ANB of the North - Fairbanks Are any of your stocks, bonds, or notes receivable held jointly with any individual other than the Co-Borrower? Are any of your assets pledged, or in any other manner unavailable for paying debts? If unavailable or pledged, give details ls any of above real estate subject to declaration of homestead? If so, has declaration been filed and on what parcels? Have you ever failed in business or compromised debts with your creditors? If so, give details carry $ life insurance payable to and assigned to The undersigned agreed any deposit or sums of any kind credited by or due from the aforesaid bank to the undersigned and any securities or other property of the undersigned in the possession of said bank may at all times be held and treated as collateral for the payment of all liabilities due said bank from the undersigned and such deposits, sums, securities or other property may at any time be applied or set off against the amount due or to become due without notice to the undersigned. In submitting the foregoing statement, the undersigned guarantees its accuracy with the intent that it be relied upon by the aforesaid bank in extending credit to the undersigned and warrants that no information was knowingly withheld that might affect the undersigned as a credit risk. The undersigned expressly agrees to notify immediately said bank in writing of any material change in the undersigned’s financial condition, whether application for further credit is made or not, and in the absence of such written notice, it is expressly agreed that said bank, in granting new or continuing credit, may rely on this statement as having the same force and effect as if delivered upon the date additional credit is requested or existing credit is continued. | hereby authorize any institution to release credit information concerning myself to ANB. This authoriztion is given to enable ANB to promptly and fairly evaluate my request for credit. In order to facilitate possible future request for credit from ANB or from other creditors, | further authorize ANB to disclose factual information regarding my record of payments on loans. BORROWER CO-BORROWER DATE OCCUPATION EMPLOYER EMPLOYER’S ADDRESS TELEPHONE eg { Gorrswer's Zignature Co-Borrower’s Signature sex, marital status, age, receipt of public assistance Income, « or ; because the applicant has In good ‘faith @ er re mere UF Fees, CUTUT, FONYION, NEUIUNal UFTyIT, rcised any right under the Consumer Credit Protec- tlon Act. The Federal Agency that administers compliance with this law concerning this Bank Is the Comptroller of the Currency, Consumer Affairs Division, 456-6408 _ Washington, 0.C., 20219. prom: name Harold L. Gilbertson tome pnone 457-6367 2.5 Mile Farmers Loop Road Residence Address Cash in Cash in hand or in other Banks First Nat'l Bank U. S. Government Securities -- See Schedulel] TFC Stocks and Bonds -- See Schedule I Accounts and Notes Rec. from Relatives & Friends l Accounts and Notes Rec. - from Others Real Estate Owned -- See Schedule III Real Estate Mtges. and Contracts Owned See Schedule II Business Phone ‘air Ss City Notes Payable to Other Banks (Name) ] Notes Payable to Relatives and Others Accounts and Biils Payable Accrued Taxes, etc. Chattel Mortgages or Liens Payable — See Schedule IV Mortgages or Liens on Real Estate -- See Schedule IV || Loans on Life Insurance Policies - See Schedule V Automobiles Year Other Debts—Itemize | Personal Property | Cash Value Insurance -- See Schedule V Pension Trust Other Assets -- Itemize Income Tax Payable BSE equipment Inventory BSE equipment _ ICO iS iO = Source of Income Alimony, child support, or public assistance income need not be revealed if you do not want it considered for this loan. | salary NET WORTH |} Bonus and Commissions Dividends Other Business Connections: | Real Estate Income Other Income--Itemize BSE yearly TOTAL 25000} 00 Age 48 Social Security 14-12-4570 No. Dependents 2 Marital Status: Do not complete if application is for individual unsecured credit. O Married 0) separated 1) Unmarried (Incl. single, divorced, widowed) Personal Bank Account carried at Have you ever taken Bankruptcy? Explain = For the purpose of procuring and maintai: statement and information contained on both s financial condition at the time such further credit is requested. January 10, 85 credit, in any form whatsoever, with you om time to time, the Siu Gleala ial foregoing aa (aissag 3 of this sheet both written and printed and including supplemental statements as beip ment of his financial condition on the date stated. The undersigned agrees to notify you immediately in writing of any mat tf condition, and in the absence of such notice, or of a new and full written statement, this may be considered as a continuiy it is hereby expressly agreed that upon application for further credit, this statement shall have the same force Tt rs Par Value DESCRIPTION IN NAME OF Fleetlin Delta Investment Aurora_Truckii Investment H.L. Gilbertso " Hallougil Corp. Yukon Navi, Tastee Freeze of Delta gation JV Corp. f Schedule II. + MORTGAGES OR CONTRACTS OWNED | Monthly Amount Original Present DESCRIPTION OF PROPERTY COVERED NAME OF DEBTOR Payments Past Due Balance Balance | | | a | | + - Schedule HII. REAL ESTATE OWNED n . tu Fi ge CS 2 Ee Recreational - Sequim H.L. Gilbertson 0000.00 | 9068.17] ~» Commercial = 10000 .00 -~ Residential " | 1900.00 Residential | a 15000 .00 Residential | | " 7500.00 [| - | | | L | | ceria I tT J | ” Schedule IV. DETAILED INFORMATION ON MORTGAGES OWING AND OTHER LIABILITIES DESCRIPTION OF PROPERTY TO WHOM INDEBTED Maturity Monthly Amount Original Present If Real Estate, Give Address Give Name and Adaress Payments | Past Oue Balance Balance | | [ — + LIFE INSURANCE CARRIED AMOUNT BENEFICIARY Cash Surrender Value Loans Against Policy 00000.00. 00000.00 Big State Equipment Judy Gilbertson | NAME OF LENDER Mo. Payments siilabnss Nab siti oiaaiet nai + ible et ate. os m ERPS Nee sex, marital status, age, receipt of public assistance income, or because the applicant nas in good faith exercised any right under the Consumer Credit Protec- tlon Act. The Federal Agency that administers compliance with this law concerning this Bank Is the Comptroller of the Currency, Consumer Affairs Division, Washington, D.C., 20219. Home Phone LAS 397 2? Business Phone SAME city LEK BKM IF FOL From: NAME Residence Address Wes Financial Statement as of... /7/............ 1985 ASSETS LIABILITIES Cash In First Nat'l Bank rae | a7 Notes Payable First Nat'l Bank -om Cash in hand or in other Banks 07 | O27~|| Notes Payable to Other Banks (Name) U. S. Government Securities -- See Schedule I -o Notes Payable to Relatives and Others Stocks and Bonds -- See Schedule I -—-o— Accounts and Biils Payable C Accounts and Notes Rec. from Relatives & Friends -——o — Accrued Taxes, etc. ae I Accounts and Notes Rec. -- from Others -_e Chattel Mortgages or Liens Payable -- See Schedule IV ae ar Real Estate Owned -- See Schedule III 2 é Mortgages or Liens on Real Estate -- See Schedule IV —_ saan een i Loans on Life Insurance Policies -- See Schedule V COO Automobiles Year Make Other Debts—Itemize —o — Personal Property | 22008 Income Tax Payable git Cash Value Insurance -- See Schedule V Use S¢4 COC Other Assets -- Itemize ans Teh Littef boo? (925 9X Yipee | 29007 C-L00 4 29 ¥KY Var’ 2400 Total Liabilities 3 . Lf. 5, OF oO NET WORTH Total Assets $ 43 L D 0 Total Liabilities and Net Worth $ L560 Source of Income Personal Information be reveated if you'do not want it considered for this foane Employed by or Occupation: LovAl PEL YR - 20 | | iy > Atith. No. Years /' Bonus and Commissions | Other Business Connections: —— | wer oil Figth Servier Pavrbyre BAY Real Estate Income Age y Social Security 222-42-3 ‘bf No. Dependents Other Income--Itemize Marital Status: Do not complete if application is for individual unsecured credit. J le D married 0 separated PLUnmarried (inc divorced, widowed) TOTAL i $ loyvece ca ; me Contingent Liabilities General Information As Endorser or Co-maker $ Are Any Assets Pledged? On Leases or Contracts $ Are you defendant In any suits or legal actions? Le. Provision for Federal Income Taxes $ Personal Bank Account carried at Ag 12. Other Special Debt $ Have you ever taken Bankruptcy? Explain ALE. A For the purpose of procuring and maintaining credit, in any form whatsoever, with you from time to time, the undersigned submits the foregoing and following statement and information contained on both sides of this sheet both written and printed and including supplemental statements as being a full, true and correct state- ment of his financial condition on the date stated. The undersigned agrees to notify you immediately in writing of any materially unfavorable change in his financial condition, and in the absence of such notice, or of a new and full written statement, this may be considered as a continuing statement and substantially correct; and it is hereby expressly agreed that upon application for further credit, this statement shall have the same { and effect as if delivered as an original statement of his financial condition at the time such further credit is requested. er Pa ET rtd ——_ V4 Bile a Par Value DrESUrriniun | cas Re 0 | i E + Schedule II. MORTGAGES OR CONTRACTS OWNED Monthly | Amount | Original Present DESCRIPTION OF PROPERTY COVERED [ NAME OF DEBTOR Rayments | Pest Ove | Gelance pelanes Mi 4 i} NS | no + Schedule III. REAL ESTATE OWNED | tT DESCRIPTION OF PROPERTY Lot or]Bik. or Montniy | Value Land | Amount Fire AND IMPROVEMENTS Sect. | Twp. TVELE IN'NAME OF Rentais | and Buildings | of Mortgage | Insurance 4 a S59 @eekge MILER =o ate [-e= =~o=— if | | [ L ae L Schedule IV. DETAILED INFORMATION ON MORTGAGES OWING AND OTHER LIABILITIES + DESCRIPTION OF PROPERTY | TO WHOM INDEBTED Maturity Monthly Amount Original Present If Real Estate, Give Address Give Name and Address Payments | Past Due Balance Balance T Ss 0 | = t = Schedule V. LIFE INSURANCE CARRIED oer Ts Cash Surrender Loans Against NAME OF COMPANY AMOUNT BENEFICIARY PR DER TAL | Wks Trin hers D208 | | { [ [ I I + Give Names of Banks or Finance Companies Where Credit Has Been Obtained NAME OF LENDER HIGH CREDIT Present Balance | 9000 -e | We =2 = -2 — | Mo. eee tL PROJECT EVALUATION TRIP REPORT Pile xy 2 Ve Xe - Hausen NAME: Brent N. Petrie/Paul E. Selge Jeane, baw sen c ~ [Ok Nn, DATE: 10-11-84 LOCATION: Fairbanks, Alaska PURPOSE OF TRIP: To meet with the principals of Far North Utilities to discuss their application for Power Project Loan Funds and their plans and efforts to install a central diesel plant and distribution system for the community of Central, Alaska. ACTIVITIES/AGENDA (participation in meetings, schedule appointments): A meeting was scheduled for 1:30 p.m., 10-11-84, at Sophie's Station Hotel to discuss the following items: 1. Power Authority Board Resolution #1980-24. 7 2. Power Project Loan Application Requirements. 3. Terms of the Proposed Loan. 4. Construction Plans and Schedule. CONTACTS: See Attachment #1 SIGNIFICANT ITEMS: See Attachment #1 DATE: 10-11-84 MEMORANDUM OF MEETING NS At 1:30 p.m., October 11, 1984 a meeting was held at Sophie's Station in Fairbanks, Alaska to discuss the application procedures for a Power Project Loan Fund Application for Far North Utilities for the proposed electrification of Central, Alaska. Attendees: A. Brent Petrie, Acting Associate Executive Director for Planning, Alaska Power Authority, phone: 276-0001. B. Paul Selge, Project Manager, Alaska Power Authority, phone: 276-0001. C. Marion Jackson, Secretary-Treasurer, Central Property Owners Association, phone: 520-5226. D. J. Clifton Eller, Far North Utilities, phone: 279-2486. ES Paula Eller, Far North Utilities, phone: 279-2486. F. George Hiller, Far North Utilities, phone: 479-8377. G. Joe Gilbertson, Far North Utilities, phone: 456-6408. Discussion: A. Alaska Power Authority Resolution No. 1980-24, dated August 29, 1980, was provided to each attendee. The highlights of the discussion were: 1). Resolution No. 1980-24 will have to be revoked and a new resolution will have to be submitted to the Power Author- ity Board to allow Far North Utilities to receive loan funds to provide a diesel generation and distribution system for Central, Alaska. The Board meeting will be held the first part of November. 2). Circle Utilities will have to be notified of the forego- ing action since Resolution No. 1980-24 originally authorized a loan to Circle Utilities which has not pursued the application. 3). Far North Utilities will have to submit an application to the Power Authority in accordance with 3AAC 94.070. The application will have to be received by the Power Author- ity by October 31, 1984 in order to be placed on the agenda for the November Board meeting. The next meeting would be held in December. s 4). The Power Authority will have to determine from the application that Far North Utilities will have sufficient revenue to repay the loan. 5). Far North Utilities should provide justification for a reduction in the interest rate from 8.6% per year to 5.0% per year. The latter is the statutory minimum interest rate provided under the Power Project Loan Fund Program. 6). The term of the loan for a diesel system is 20 years. 7). Repayment conditions are negotiable within the framework of the program. The timing of payments from one month to the next is also negotiable. 8). The Power Authority requirement for a certificate of public convenience may be waiveable. It would be in the best interest of Far North Utilities to file for a certificate of public convenience as soon as possible. It was noted that it may take 6 months for the APUC to award a certificate. The community proposal to split the $200,000 into part loan and part grant was discussed. Paula Eller indicated that the approximate cost to the consumer would be $125.00 for the cost of a meter base and ditching. Brent Petrie indicated that the loan application may be delayed if a split is requested and there were no assurances that OMB would approve any change from a loan to a grant. Marion Jackson indicated that the property owners would not want to pursue the issue of a grant/loan split if it might delay the project. Far North indicated that it would apply for the full $200,000 loan. A copy of Section 70, Article 3, Chapter 94 of the Alaska Administrative Code, Power Project Fund Loan Application, was provided to each attendee. The loan application requirements were discussed. A question on the definition of a guarantor of the loan [3AAC 94.070 (a)(10)] was raised. The question will be referred to the Associate Executive Director of Finance for a determination. A description of the proposed project was provided by Far North Utilities. A map of the proposed system with future expansion is provided by Enclosure 2. 1). Meter bases: 53 / 43 S\N 2). Meter bases for full-time residents: 39 28) Pe 3). Commercial/Governmental Users included: a). School b). State DOT c). United Utilities (Telephone System) d). Airport Lighting e). Lodge f). Store/Bar 4. 5. 4). Equipment on hand: a). Cat 343, 250 KW generator - 1 ea. b). Cat 353, 250 KW generator - 1 ea. c). Detroit Diesel, 300 KW generator - 1 ea. d). International, 250 KW generator - 1 ea. e). Fuel storage: 10,000 gallons 5). Material: 10,000 feet armor shield wire. 6). Real property a). Powerhouse site b). 40' x 60' building Electrical demand was discussed and the point was made that, even in the middle of the night during the winter, the demand would be high because of engine heaters. Future waste heat potential was discussed. Due to the pro- posed location of the power house, a waste heat recovery system is not practical. A system may be possible in the future if new facilities locate near the power house. Schedule: The deadline for submission of material for the Board Agenda is October 31, 1984. Far North's loan applica- tion should be submitted to the Power Authority by then. The Board should approve or disapprove the loan application at the November Board meeting. The loan could be signed by the end of the month. Action required: A. B. Far North Utilities will prepare a loan application. The Power Authority staff will prepare the necessary material for the Board packet. The meeting was adjourned at 4:00 p.m. TO: FROM: Planning Department DATE: May 28, 1985 FILE NO: TELEPHONE NO: Ernie Whitney fn) suBJECT: Central Loan Auditing Manager Application (Far North Utilities) Power Project Loan Fund Attached is a copy of the subject loan application for your depart- ment's review and recommendation under Power Authority internal policy number 4-01. Since the project is relatively small and design work was done by the owners themselves, Doug MacArthur made a field inspection of the project on 5/13/85 to obtain the information necessary to evaluate the technical feasibility of the project. A copy of this information is included. While normally your department would have 30 days to make a rec- ommendation, a prompter response would be appreciated since the Power Authority has made a commitment to Don Bennett to try and bring Central's loan application before the board at their next meeting. A schedule showing the proposed allocation of loan funds is expect- ed from Mrs. Eller by early next week - I will provide a copy of this as soon as I receive it. Attachments as stated cc: Jerry Larson, Project Manager/Rural Projects /O! Rt. Malic? Pe prgpeer a Soe ae Mi “4 = ti CAD - Oe Be Br leleal QRAQIAWQ2A/EL1 Date: June 3, 1985. Ja: Brent N, Petrie From: Peter N. Hansen "iy Subject: Central loan application. My review of the loan application has produced the following camment st A. Through their involvement in Tanana Power Mr. and Mrs. Cliff and Paula Eller have shown a thorough understanding of the problems associated with running a small rural Alaskan utility. Thus there should be no question about the capability of the partnership to undertake the project. RB. There is a grave inconsistency between the assumptions made for peak load and the assumptions made for power productions. The estimates for peak loads are based on a simple summation of capacities for the generators currently in use in Central. This approach ais questionable as nothing is known about the loading factors for these generators. Typically, the smaller a system is, the greater the ratio of capacity ta load will be. Also, it is highly unlikely that the array of generators currently used in Central will ever experience peak loads simultaneously. It is estimated that the annual gross power requirements will be 225,570 kwh. This carresponds ta an average lead of 235.75 kw which is only 12.9% of the capacity of the smallest generatar installed. This preavides for very poor fuel efficiency and = for heavy and expensive maintenance. Thus, if the estimates for power demand are correct, the generators purchased are oversized. If, however the estimates for power demand are very low, then the generators may be appropriately sized. The higher annual sales will decrease the expense per kilowatthour produced and thus the estimated power cost for #.47 $/kwh iw too high. Cc. The loan amount ($239,890) does not seem sufficiently secured with the equipment purchased. All generatars are used and although they have been of will be rebuilt they can not be considered to be modern equipment. Especially the Detroit (which will be used for stand by purposes only) and the International ave of questionable value as collateral. LEMcLlLusil ans The loan application sheauld not be approved as it iis. The applicant should be required ta install equipment which will function in accerdance with the applicant*s own assumptions i.e. at least one smaller unit should be installed. This unit should probably be be no larger than 75 kw. Failure to install and utilize equipment of the correct size will cause the price of power te be higher than necessary. The State of Alaska throudh the local school district and other Government Agencies will be a major customer and in addition a portion of the other customer’s bills will be paid by the State through the Power Cost Equilization FProageam. Thus considerable expenses could be incurred by the State if the correct size equipment is not installed and utilized. Bi TO: FROM: Bill Batt pate: June 12, 1985 Associate Executive Director \ Finance and Administration FILE NO: TELEPHONE NO: Ed Morris susvect: Central loan Associate Executive Director application The Planning Directorate's review of the loan application has produced the following comments: A. Through their involvement in Tanana Power Mr. and Mrs. Cliff and Paula Eller have shown a thorough understanding of the problems associated with running a small rural Alaskan utili- ty. Thus there should be no question about the capability of the partnership to undertake the project. There is a significant inconsistency between the assumptions made fi eak load and the assumptions ‘oduc- the smaller a system is, the greater the ratio of capacity to load will be. Also, it is highly unlikely that the array of generators currently used in Central will ever experience’ peak loads simutaneously. It is.estimated that the a will hus, if e estimates for power demand are correct, the generators purchased are oversized. If, however, the estimates for power demand are very low, then the generators may be appropriately sized. The higher annual sales will decrease the expense per kilowatt hour produced and thus the estimated power cost for 0.67 $/kwh is too high. generators are used an or will be rebuilt they can not be considered to be modern equipment. Especially the Detroit (which will be used for stand by purposes only) and the International are of questionable value as collateral. We are aware of some interest in a pole sharing agreement by United Utilities which is proposing extending telephone service to Central from Circle Hot Springs. The addition of Circle Hot Springs to the power market could significantly 9704/403 improve the load factor and the applicant should be encouraged to explore the possibility and report on its durability. Conclusion: The loan application should not be approved as it is, the applicant should be required to install equipment which will function in accordance with the applicant's Ss own assumptions i.e. at least c one smaller unit should be a considerable expenses could be incurred by ate if the correct size equipment is not installed and utilized. PH/ELM/cdc 9704/403 TO: FROM: a => R.E. Etheridge PATE: May 29, 1985 Associate Executive Director 2 : of Projects es TELEPHONE NO: Jerry Larson Sa Inspection & Review of Project Manager/ Loan Application, Far Rural Projects North Utilities Central, Alaska The Construction Department was directed to conduct a critical engineering review of the loan application for the new electric system at Central. Doug MacArthur conducted a field survey of the project May 13, 1985. The inventory, description of facilities and photograph coverage are attached for your reference. The photo coverage shows an extensive use of used equipment. The diesel generators, Caterpillars, are overhauled with zero time since overhaul. This should make the engine as new with pistons, rings, and sleeves. It should be noted, however, that both the D353 and D343 engines are no longer in production by the Caterpillar Company. There have been large quantities of these engine models in Alaska and there are many parts still available. It is expected that these wits should be retired in no longer than 10 years, and replaced with more modern, higher efficiency engines. It is doubtful $200,000 worth of equipment, buildings, and tanks are presently in place at this time. With this in mind, it is reconmended that a construction cost estimate be presented to the Alaska Power Authority from the borrower with a breakdown on cost of major expenses. Also, we have been informed that a line exten- sion may be constructed from Central to Arctic Circle Hot Springs on an over head line with a pole share agreement with United Utilities. The Power Authority should request a supplemental economic forecast on the additional load and what effect this load will have on the equipment sizing and KWH cost. The loan document states the cost of power at 67¢ . This cost seems unnecessarily high, but the load forecast is low. With Circle Hot Springs on line, the Ki sales still increases with the same generators thereby reducing the cost per KWH, JL/ede nree leon tke ERT Date: June Tat Brent N. Fetrie From: Peter N. Hansen Subject: Central loan application. My review of the loan applicatian has produced the following comments Ae Through their irveol venent. Paula Eller have shown a associated with running a sm should be no question about undertake the proaiect. Mr. id Mre. Qliff and aiderstanding of the problems rural Alaskan wu lity. Thus there capability of the partnership to Ba There is a qrave inconsistency between the assumptions made for peak load and the assumptions made for power productions, The estimates for peak leads are based an a simple summation of capacities for the generators currently in use ain Central, This approach is questionable nething is known about the loading factors for these generator Typically, the smaller a system is, the greater the ratio of capacity to load will be. Also, it is highly unlikely that the array of generators currently used in Central will ever experience peak loads simultaneously. It ais estimated that the annual gross power requirements will be 225,578 kwh. This corresponds to an average load of 25.75 kw which is only 12.9% of the capacity of the smallest gqeneratar installed. This provides for very poor fuel efficiency and far heavy and expensive maintenance. Thus, if the estimates for power demand are correct, the gener ‘Ss purchased are cveraivect. Tf, however the estimates far power emand are very low, then the gener ata may be apmropri ately ized, The higher annual sales witl decrease the expense per kilowatthour produced and thus the estimated power cost for #67 @/kwh is too high. “ 5 The oan amount Ch withh the ierment uae w, nok seen All genera 2 although 4 Y have b rebuilt net tee cansi derec E pecially the ort (which aaed for stand and thie tionable value will fe are que ened The loan application sheuld not be approved as ait is. The applicant should be required te install equipment which will function in accerdance with the applicant's own assumptions i.e. at least one smaller unit should be installed. This unit should probably be be no larger than 75 kw. Failure to install and utilize equipment of the correct size will cause the price of power to be higher than necessary. The State of Alaska throudh the local school district and other Government Agencies will be Major customer and in addition a portion of the other customer bills wi be by the State through the Power eB Equilization Thus considerable expenses cauld he incurred by the if the size equipment is installed and utilize MEMORANDUM DATE: June 4, 1984 TO: Rudy Etheridge Associate Executive Director of Projects Ed Morris Associate Executive Director of Planning | ~ FROM: Ernie Whitney Auditing Manage SUBJECT: Central (Far North Utilities) Loan Application - Power Project Loan Fund Attached is a schedule received today from Mrs. Eller showing the proposed allocation of the $200,000 loan funds requested. Note that the proposed expenditures exceed the loan amount; the Ellers and their partners intend to finance the balance (about $65,000) themselves. Supporting schedules showing more details of expenditures for the building and mechanical equipment are also attached, as well as a letter from the Central Property Owners Association (also provided today by Mrs. Eller). Please advise me soon if you'll need more information, so that I can request it from Mrs. Eller. I advised Mrs. Eller that we were aiming for presenting Central's application before the Board at the meeting to be held in July, while their application for Tanana would probably be presented at the upcoming meeting. Attachments as stated. cc: William Batt, Alaska Power Authority, Anchorage Susan White, Alaska Power Authority, Anchorage EW/se QR26 /20N FAR NORTH UTILITIES CENTRAL, ALASKA RECEIVED JUN 4 1985 ALASKA POWER AUTHORITY Proposed schedule with allocation of loan funds: In reference to the power project at Central, Alaska we have on site a number of items provided by the partnership. In order to finish the project we need approximately $200,000. to be used as follows: Our plan was to have a partnership equity of approximately $67,000. with loan funds of $200,000. from the power project loan fund. Land $ 9,000.00 S pent Building $ 48,324.53 Generators, switchgear, 2-10,000 gal tanks $123,233.34 Bi gz Z2416L ty-dak Transmission lines $ 2,683.95 / ( (ler Mas, Tller We propose to have the system on line by the last of September, 1985. To accomplish this, processing of the loan at the earliest date is of the utmost importance. / / Cement , and labor for floor of powerhouse $ 10,000.00 Ue Transmission line, trencher and labor $ 50,000.00 Service drops to houses $ 5,000.00 eshumk, + Meters $ 2,580.00 / Transformers $ 14,000.0 6G l, 580, (onrplele If more information is needed or we can exnedite the process in any way please do not hestitate to call. fat 4 (8 te ee ee Te Se eo eee PREECE Len ~Al af : ee eee ee SES SSS eS SS ee p-—}| | eee ’ fee EL Leila) [5] | (Bases | Scull TT TT PT Serre eee SEE ERE EE EERE EEE EE EEE EE EE EEE —— fesse es [eee | ce pee a | poe 2 Se F Pea an | | | | | | | | tL ALLE HTT | : | | | | | | | | | | | | | | | Asset su ZL. 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Box 120 « Central, Alaska 99730 January 11, 1985 Far North Utilities sGeorge ‘Willer 37'+9 Swenson Ave. Fairbanks, Ak. 99701 Dear Mr. ‘liller: The Central area is in dire need of a local utility company and we're very much looking forward to your company coning on line. As you already krow we've been trying to set un some sort of power source for about five years now, and any further delays wovld be hard to handle. Sincerely nope everything goes well with your meeting with the agencies your dealing with. And if theres! anything we can do to help don't hesitate to let us know. Thank you 4 fers te chee) i jJack L. Jadkgon President/ CPOA FAR NORTH UTILITIES LOAN APPLICATION FAK NURIA ULLLILLbdS 406 W. Fireweed Lane Anchorage, Alaska 99503 December 12, 1984 Alaska Power Authority 333 West Fifth Avenue, Suite 31 Anchorage, Alaska 99501 RE: LOAN APPLICATION Gentlemen: Far North Utilities, a partnership, respectfully submits this application for loan funds in the amount of Two Hundred Thousand Dollars ($200,000) from the Power Project Fund as authorized by AS 44.56.170. Funding in this amount has been approved under Chapter 54 of HCSSB 424 am H and APA Resolution No. 1980-24. The following information is provided pursuant to the require- ments of 3AAC 94.070. The legal name of the borrowing entity is Far North Utilities. The partnership agreement creating the entity is attached as appendix 2. The partnership authorization to incur debt is attached as appen- Oie | 2s The authorized representative of the partnership in connection with processing the requested loan is: Mrs. Paula Eller P.O. Box 876 Palmer, Alaska 99645 Telephone 279-2486 or 745-2556 The names of partners and the administrative director are as follows: Partners: J. Clifton Eller George R. Hiller, Jr. Harold L. (Joe) Gilbertson Director: Paula Eller Alaska Power Authority December 12, 1984 Page 2 Professional advisors: Legal: Julian L. Mason, III 510 "L" Street, Suite 312 Anchorage, Alaska 99501 Engineering: Marks Engineering 13691 Jarvi Drive Anchorage, Alaska 99515 Financial consulting and accounting: Arthur Young & Company 1031 West Fourth Avenue Suite 600 Anchorage, Alaska 99501 The total amount of loan funds requested is Two Hundred Thousand Dollars ($200,000). Considering that each percentage point in interest rate will translate to approximately one cent in retail rates, We respectfully request the lowest possible interest rate allowable for this loan. The loan funds are for the purpose of constructing a 40' x 60' powerhouse building, acquire the powerhouse site, and acquire and install diesel powered generators in Central, Alaska. In this connection the current status of progress on this project is: ° Powerhouse site acquired ° Powerhouse under construction ° Equipment on site: Cat 343,200 KW generator Cat 353,250 KW generator Detroit Diesel, 300 KW generator International, 250 KW generator Fuel storage, 20,000 gallons The feasibility of this loan is provided by the accompanying revenue requirement study (appendix 1) that determines the esti- mated retail rates required to support the utility and amortize debt based on the assumptions as set forth in the study. The partners anticipate filing an application for certification of the utility shortly following the submission of this loan appli- cation. The revenue requirement study at appendix 1 will form the basis for inception rates. page 3 The establishment of central service electricity within the pro- posed service area will significantly increase the safety and celiability of the energy needs of the residents and businesses. Without adequate low-cost financing, this central service will not be possible. All required permits for right of ways have been obtained. (App. 5) Pro forma operating results are included in the study at appendix 1. The partners anticipate an equity investment of approximately $67,000. All costs to date have been paid by the partners. The business histories of each of the partners is attached as appendix 4. Time is of the essence in this application and should there be any additional information requirements, please call Mrs. Paula Eller at 279-2486. Very truly yours, Qn Ke. Edu) FAR NORTH UTILITIES 406 West Fireweed Lane Anchorage, Alaska 99503 Authorization to Incur Debt We the undersigned, constituting all of the partners of Far North Utilities, do hereby authorize Mrs. Paula E. Eller to apply for loans from the Alaska Power Authority and to negotiate the repayment terms: Power Project Fund $ 200,000 Rural Electrification Revolving Loan Fund $ 100,000 The purpose of these loans is to equip and construct an electric utility in and about Central, Alaska. Dated this 26th day of October, 1984. Hiller) Jr. t i t ee IIIDEN Ur AMUN PUUIN In ron ARTHUR YOUNG ee Anchorage, Alaska 99501-5992 December 12, 1984 Fac North Utilities, Partnership 406 West Firceweed Lane Anchorage, Alaska 99503 We have prepared the accompanying forecasted revenue requirement study of Fac North Utilities first test year. The study was undertaken to determine the retail rates necessary to provide cash flows for debt service and operating capital of the proposed electric utility at Central, Alaska. The significant assumptions include financing from the Alaska Power Authority repayable over a 20 year term in the following amounts and interest rates: Power Project Fund $200,000 @ 53% Rural Electrification Revolving Loan Fund $100,000 @ 2% The proposed faciliites include a powerhouse, 4 generator units with a total capacity of 1000 KW, fuel storage, approximately 1.5 miles of underground distribution lines and related equipment to connect approximately 43 customers to the facilities. These potential customers are presently providing their power require- ments through self-generation or none at all. It is assumed that the initial faciliites will rcequire a minimuim of $67,000 in pactnecs' capital. Ouc procedures included analysis of: Construction costs of the initial facilities Power sales Operating expenses Debt service requirements Equity capital Fac North Utilities Page 2 We also participated in gathering other information, assisted management in identifying and formulating assumptions, and assembled the accompanying forecasted revenue requirement study based on those assumptions. The accompanying forecasted revenue requirement study for the first test year is based upon assumptions that were provided by orc ceviewed with and approved by management. The forecast inclu- des all of the schedules required for a rate filing with the Alaska Public Utilities Commission under 3AAC 48.275. This study will form the basis for filing an application with the Alaska Public Utilities Commission for a certificate of necessity and public need and inception retail rates for a service area in and about Central, Alaska. The forecast presents management's estimate of the most probable financial results of operations for the first test year. Accordingly, the forecast reflects its judgment, based on present ciccumstances, of the most likely set of conditions and its most likely course of action. Our conclusions are presented below: e We believe that the underlying assumptions provide a ceasonable basis for management's forecasts. However, some assumptions inevatably will not materialize and unanticipated events and circumstances may occur; there- fore, the actual results achieved during the forecast period will vary from the forecast, and the variations may be material. e The accompanying forecasted revenue requirement study indicates that sufficient funds will be generated to Fac North Utilities Page 3 operate the initial utility and provide for debt service at a retail rate of 67.7%/KWH. However, the achievement of any financial forecast is dependent upon future events, the occucrcence of which cannot be assured. We have no responsibility to update this report for events and circumstances occurring after the date of this report. FAR NORTH UTILITIES INDEX Schedule Revenue Requirements: Computation of revenue increase Rate base and revenue requirement State & federal income tax computations Normalized operating expenses Assumptions Computation of rate of return Schedule of long-term debt 12-month average plant 12-month average working capital require Inventory account balances Detailed plant balances 10 KWH sales computation 1l List of potential customers 11.1 . e ODIDUPWNNE Power cost equalization rate computation schedules Appendix 1 FAR NORTH UTILITIES SCHEDULE OF TARIFF RATE FIRST TEST YEAR SCHEDULE 1 REVENUE REQUIREMENT (SCHEDULE 2) S 136,439 ESTIMATED KWH SALES (SCHREDULE 11) + 201,402 COST TO CONSUMERS IN CENTS/KWH 67.7¢ FAR NORTH UTILITIES RATE BASE & REVENUE REQUIREMENT FIRST TEST YEAR SCHEDULE 2 RATE BASE COMPUTATION: RATE BASE COMPUTATION: WORKING CAPITAL COMPONENT: NORMALIZED OPERATING EXPENSES (SCHED LFSS: DF PREC IATION RESULT TIMES 45/365 OTHER COMPONENTS (SCHEDULE 8&8): ADD: MATERIALS & SUPPLIES ADD: PREPAYMENTS LESS: DEFERRED CREDITS LESS: CUSTOMER DEPOSITS TOTAL W/C REQUIREMENTS NET UTILITY PLANT (SCHEDULE 7) RATE BASE TIMES RATE OF RETURN (SCHEDULE 5) RETURN ON RATE BASE INCOME TAXES (SCHEDULE 2.1) NORMALIZED EXPENSES (SCHEDULE 3) REVENUE REOUIRED LESS-OTHER REVENUE REVENUE REQUIRED FROM ENERGY SALES 3) $113,539 (15,482) 98,057 Ss 12,989 7,131 0 (0) (0) 19,220 326,597 345,817 6.19% 21,409 1,491 113,539 136,439 0 S 136,439 67.74¢ FAR NORTH UTILITIFS STATE & FEDERAL INCOME TAX COMPUTATION FIRST TEST YFAR SCHEDULE 2.1 Total Income Computation Tax Fxpense RETURN ON RATE BASE (SCHEDULE 2) Ss 21,409 LESS: INTEREST EXPENSE (SCHEDULE 6) (12,000) TAXABLE INCOME (STATE) 9,409 STATE INCOME TAX (94) s 94 TAXABLE INCOME (FEDFRAL) 9,315 FEDERAL INCOMF TAX (1,397) 1,397 s 1,491 The tax computations are based on the rates for corporation. FAR NORTH UTILITIFS NORMALIZED OPERATING EXPENSES FIRST TEST YEAR SCHEDULE 3 RA LANCE EXPENSES (SEE SCHEDULE 4) COST OF POWER GENERATION LABOR s 25,486 GENERATION MAINTENANCE 4,605 FUEL 28,196 TOTAL COST OF POWER 58,288 DISTRIBUTION O/H LINE MAINTENANCE 9 U/G LINE MAINTENANCE 5,280 DISTRIBUTION 5,280 CONSUMER ACCOUNTS METER READING EXPENSE 914 CUSTOMER RECORDS 3,840 UNCOLLECTIBLE ACCOUNTS 0 TOTAL CONSUMER ACCOUNTS 4,754 ADMINISTRATION & GENERAL ADMIN & GENERAL SALARIES 6,900 OFFICE SUPPLIES 1,800 OUTSIDE SERVICES 5,800 PROPERTY INSURANCE 4,500 EMPLOYFE PENSION BENEFITS 4,435 MISC. GENERAL EXPFNSF 2,100 RENT 5,100 TOTAL ADMIN. & GENERAL 29,735 DEPRECIATION DEPREC. OTHER PROD. PLANT 10,678 DEPREC. DISTRIBUTION 3,929 DEPREC. GENERAL PLANT 875 TOTAL DEPREC. & AMORTIZATION 15,482 TOTAL OPERATING EXPENSES s 113,539 FAR NORTH UTILITIES ASSUMPTIONS SCHEDULE 4 Equity Portion of Return Assumed capital investment by partners: Gross Plant (schedule 10) S 342,079 Add estimated working capital required (schedule 2) 24,921 Total Required Investment 367,000 Less: borrowed funds (schedule 6) 300,000 Equity Funds s 67,900 FAR NORTH UTILITIES ASSUMPTIONS SCHEDULE 4 INVENTORY BALANCES The account balances were computed with the assumption that there would be 3 months worth of inventory on hand at any one time. Annual Purchases: Item Units Unit Cost Freight Total Cost Inventory Lube Oil 624 $4.06 $0.41 $2,792 Antifreeze 50 $6.30 so.41 $336 Oil Filters 86 $3.54 so.41 $340 Air filters 48 $55.29 $0.41 S2)67.4 Annual Purchases 6,141 less 3/12 times annual balance (1,535) $1,535 Generation Maintenance Fxpense $4,605 (assume 25% of fuel storage capacity used on the average) <2een----- DIESEL FUEL---------- > MONTH _ Gal Unit Cost Total 1 5,900 $1.14 Ss 5,700 2 5,990 1.14 5,700 3 5,900 1.14 5,700 4 5,900 1.14 5,700 5 5,900 1.99 5,450 6 5,900 1.09 5,450 7 5,900 1.99 5,450 8 5,000 1.09 5,450 9 5,000 1.99 5,450 10 5,900 1.14 5,700 lt 5,990 1.14 5,700 12 5,900 1.14 5,790 Total $67,150 Times 1/12 of Total 5,596 5,596 Total Materials & Supplies Inventory $7,131 FAR NORTH UTILITIES ASSUMPTIONS SCHEDULE 4 PAYROLL EXPENSES 1 Operator/lineman fulltime: Generation expense Distribution Maintenance Meter Reading Relief Plant Operator (8 hrs/week ) Billing clerk (Customer Records Expense) Administrator/Accountant (A & G Salary) Total Payroll Costs Pension, Vacation & Benefits (@ 14% of salaries $31,680) OTHER EXPENSES Outside consulting (Estimate) Accounting Other 1) Total Outside Services Telephone ($75/month) Miscellaneous Expenses (estimate) 2) Total Miscellaneous A & G Office Rent ($125/month) Computer Rent ($10/hr * 30 hrs/month) 3) Total Rent Customer Rilling Supplies ($100/month) Office Supplies (S50/month) Total Office Supplies 4) Liability & Prop. Insurance (estimate) HOURS RATE TOTAL 1,592 $12.69 $ 20,206 416 $12.69 5,280 72 $12.69 914 2,980 $12.69 26,400 416 $12.69 5,280 40 hrs/mo. $8.00/hr 3,840 $500/month 6,990 $s 41,520 4,435 S$ 4,300 1,500 s 5,800 900 1,200 2,190 1,500 3,600 5,190 1,200 600 1,890 4,500 $19,300 (non-salaried (non-salaried SCHEDULE 4 FUEL EXPENSE The computations below are predicated on the KWH sales computed in schedule 11, line losses of 11%, system use of 1% of KWH sales, generator efficiency of 9.0 KWH/gal, and the proportion of diesel # 1 used to diesel # 2 is 70:30. TOTAL SALES 201,402 KWH ADD: LINE LOSS at 11% 22,154 SYSTEM USE AT 1% of Sales 2,014 TOTAL KWH REQUIRED 225,570 GENERATOR EFFICIENCY = 9.90 KWH/GAL FUEL REQUIRED 25,963 GAL ee Diesel # 1 Diesel # 2 Total Allocation 70% 30% 100% Allocated Gallons 17,544 digo LS) 25,963 Gal. Times Fuel Cost Per Gallon $1.14 $1.09 $1.125 Annual Fuel Cost $20,001 $8,196 $28,196 —— — ———— DEPRECIATION EXPENSE The REA guidelines for depreciation rates were used to compute the depreciation expense as detailed below. PLANT DE PREC DEPRECIATION BALANCE RATE EXPENSE GENERATION: LAND s 9,900 STRUCTURES 57529) 3.9% s 2,266 FUEL HOLDERS 25,900 7.0% 1,750 GENERATORS 95,181 7.0% 6,663 204,704 10,678 DISTRIBUTION OVERHEAD COND. 9 UNDERGRND COND. 108,000 2.9% 3,132 LINE TRANS. 14,000 3.1% 434 SERVICES 5,000 3.6% 180 METERS Sei 3.4% 183 LS 2ip35) 3,929 GENERAL PLANT 5,900 Lerielo 8) 875 S 342,079 S 15,482 FAR NORTH UTILITIFS COMPUTATION OF RATE OF RETURN FIRST TEST YEAR SCHEDULE 5 WEIGHTED PERCENT COST OF TOTAL RATE PERCENT DEBT (SCHEDULE 6) s 300,900 81.74% 4.00% 3.27% EQUITY (SCHEDULE 4) 67,000 18.26% 16.90% 2.92% TOTAL S 367,000 100.00% 6.19% FAR NORTH UTILITIES SCHEDULE OF LONG-TERM DERT FIRST TEST YEAR SCHEDULE 6 INTEREST PERCENT WEIGHTED INTEREST RATE BALANCFS OF TOTAL cost EXPFNSE 5.90% $200,000 66.67% 3.333% s 10,900 2.90% 100,900 33.33% 0.467% 2,900 0.900% 0 0.90% 0.00% 0 $300,900 4.90% S$ 12,900 FAR NORTH UTILITIES 12-MONTH AVERAGE PLANT BALANCE SCHEDULE 7 MONTH PLANT- ACCUMULATED NET IN-SERVICE DEPRECIATION PLANT 1 S 342,079 S$ 1,290 S 340,789 2 342,079 2,580 339,499 3 342,079 3,871 338,208 4 342,079 5,161 336,918 5 342,079 6,451 335,628 6 342,079 7,741 334,338 7 342,079 9,931 333,048 8 342,079 10,321 331,758 9 342,079 11,612 330,467 10 342,079 12,902 329,177 et 342,079 14,192 327,887 12 342,079 15,482 326,597 TOTAL $4,104,948 $100,634 $4,004,314 12 MONTH AVERAGE S 342,079 $8,386 $333,693 FAR NORTH UTILITIES WORKING CAPITAL REQUIREMENTS SCHEDULE 8 MATERIALS & PRE- DEFERRED CONSUMER MONTH SUPPLIES PAYMENTS CREDITS DEPOSITS (SCHEDULE 9) $ 7,131 s Urls Wigs 7,131 7,131 7,131 Usk 7,131 7,131 10 elo LI; Toei3sy 12 Tg lot WODAIDUPWHHE ssoooo00gqao 0o0g00 soooosoo0oo0oo0oo0oo00o sooooogoT0gg0g00 n 2 an o an o TOTAL $85,572 ) | | n > an o n ° 12-MONTH AVERAGE $ 7,131 ———S— | ) : SCHEDULE 9 MONTH ODIDUSPWNH FAR NORTH UTILITIES WORKING CAPITAL REQUIREMENTS Materials & Supplies (Schedule 4) Si elsl lst 7,131 Vest aks! 7,131 Vist 7,131 vow 7,131 eples 3 Upaleyt TOTAL 7,131 ek 7,131 Tp Tas Uji 7,131 7,131 ees Vetod elo task SCHEDULE 10 ACCT # FAR NORTH UTILITIES DETAILED PLANT BALANCES ACCOUNT NAME BALANCE (SEE SCHEDULE 4) GENERATION 1340 1341 1342 1344 1365) 1367 1368 1369 1370 1392 1110 1111 yVT2 LAND & LAND RIGHTS STRUCTURES FUEL HOLDERS GENFRATORS OVERHFAD CONDUCTORS UNDERGROUND CONDUCTORS LINE TRANSFORMERS SERVICES METERS TRANSPORTATION EQUIP TOTAL GENERAL PLANT GROSS PLANT ACCUM. DEPN: GENERATION ACCUM. DEPN: DISTRIBUTION ACCUM. DEPN: GENERAL PLANT s 9,000 75,523 25,900 95,181 204,704 0 108,000 14,000 5,000 5,375 132,375 5,000 5,000 342,079 10,678 3,929 875 15,482 s 326,597 —————— FAR NORTH UTILITIFS KWH SALES ASSUMPTIONS SCHEDULE 11 Per REA Bulletin 1-1: Statistics for AVEC Commercial Residential # Customers 257 3,462 KWH Sold 3,117,000 8,651,000 KWH/Cust/Month 1,011 208 Statistics for Tanana Power Co. # Customers ——— 169 KWH Sold ---- 796,437 KWH/Cust/Month ae 393 Monthly usage to be used for Far North Utility 1,011 300 (Average KWH) SS FAR NORTH UTILITIES: TOTAL SEASONAL COMMERCIAL RESIDENTIAL TOTAL CUSTOMERS 43 15 11 17 MONTHS USING POWER 3 12 12 MONTHLY KWH USAGE 150 1,911 300 Annual KWH 201,402 6,750 133,452 61,200 Seasonal monthly usage assumed at 1/2 of Residential usage FAR NORTH UTILITIES LIST OF POTENTIAL CUSTOMERS SCHEDULE 11.1 These data are taken from a list of potential customers provided by Paula Fller. The workpapers contain additional information on each of the 43 customers. CUSTOMER NO. SEASONAL COMMERCIAL RESIDENTIAL xX ODIDUNSWNHHE OK OOK x KO em ° * NNNNM NDS ~ eK MK ~ w °o x KK OK OK w w oc wn ~ x K ~ KO > K KK OOK TOTAL # 43 15 11 17 1. 10. ll. 12. 13. 14. 15. Name of partnership shall be Far North Utilities Name of principals George R. Hiller Jr. of Central, Alaska, home phone 907-479-8377 P.O. Box 37 Central. Alaska 99730 J. Clifton Eller of Palmer, Alaska, home phone 907-745-2556 P.O. Box 876 Palmer, Alaska 99645 Harold L. (Joe) Gilbertson of Fairbanks, Alaska, home phone 907-457-6367 P.O. Box 1540 Fairbanks, Alaska 99707 Purpose of partnership is to establish, build, maintain, and operate Far North Utilities principally as an electric utility serving the public. Area to be served will be community of Central and surrounding area, with future expansion as needed to Arctic Circle Hot Springs district. Term of partnership is perpetual. Base of operations will be Central, Alaska. Engineering consulting firm to be used will be Marks Engineering of Anchorage, Alaska. Administration officer is Paula Eller, Yukon Telephone Co., Inc. Partnership equity to be based on equity accounts of each partner. Buy/Sell Agreement: Any partner may sell his equity unristricted to partnership only. In the event partnership fails to buy or is uninterested in buying his equity, then and only then, said partner may sell his equity to remaining partners on a pro ratea basis. In either case such offer to sell, partner must give a sixty day option to partnership offering to sell his equity. However, in the event the partnership fails to buy and the remaining partners fail to buy, then partner wishing to sell his equity may do so without further notice. It is understood and agreed to by all partners that no other means will be employed to sell or dissolve said partnership. Any action to sell the whole partnership must first be agreed to by all partners if so exsisting. The partners agree that bonding or other incurring debt will be by agree- ment only. No partner my pledge partnership assets nor incur debt without the consent of the remaining partners on behalf of said partnership. Any and all management agreements must be signed and agreed to by all partners. Any contracts obligating this partnership must be further signed by the Management as agreed or the partnership and partner in whole. This partnership must give its approval in writing for all obligations in excess of $1000.00 and a purchase order system will be used in all purchases of items of less than $1000.00 in value. This agreement shall be governed by the laws of the State of Alaska. This agreement shall be all encompassing. No other oral or written 16. This agreement shall be binding by all partners signing same. 17. This agreement shall further be binding to all sucessors and heirs. Any heirs shall be continued as silent partners with no voice or vote but shall be considered as equity only. Any equity of heirs shall be offered for sale within sixty days of inheirtance to said partnership or Far North Utilities. Harold L. (Jo6) Gilbertson FAR NORTH UTILITIES 406 West Fireweed Lane Anchorage, Alaska 99503 Authorization to Incur Debt We the undersigned, constituting all of the partners of Far North Utilities, do hereby authorize Mrs. Paula E. Eller to apply for loans from the Alaska Power Authority and to negotiate the repayment terms: Power Project Fund $ 200,000 Rural Electrification Revolving Loan Fund $ 100,000 The purpose of these loans is to equip and construct an electric utility in and about Central, Alaska. Dated this 26th day of October, 1984. J. Clifton Eller Harold L. (Joe) Gilbertson George R. Hiller, Jr. BUSINESS HISTORY J. CLIFTON & PAULA E. ELLER In 1960, we constructed and began operating a Telephone Company providing local and toll service to the residents in Tanana, Alaska. We performed all the billing and bookkeeping services required of a regulated utility. We have since constructed new facilities in Ruby and this year the purchase of Whittier Telephone Company. In 1966 we leased facilities from City Services and began Tanana Power Company because City Services were no longer providing power to the City of Tanana. We immediately bought a 50 KW generator and began power service to the residents of Tanana. With reliable service, growth became evident and we purchased a 200 and a 250 KW generator. We contracted with the Federal Aviation Administration and the School to supply their power. We negotiated a contract with the USPHS Hospital to provide power to them so we needed to increase our generation capacity and we leased a 500 KW generator which we later purchased. As the 500 was nearing a peak load we purchased an 800 KW generator. Over the years we have upgraded the electrical distribution systems and added to the system to accomodate all customers in our service area. Clif has designed and built both the power and telephone distribution systems which meet REA specifications. At the present time, we are doing the accounting and billing services for approximately 400 telephone subscribers and 200 electric users. October 26, 1984 Harold L. (Joe) Gilbertson Birthdate: 12-13-36 Married - Wife's name, Judy, married 5-23-59 Children - Mervin aged 24 Verla aged 21 Both childern were born in Fairbanks, Alaska Home address: 2.5 Mile Farmers Loop Road Fairbanks, Alaska 99701 Mailing address: PO Box 1540 Fairbanks, Alaska 99707 Work Phone: 907-456-6408 Home Phone: 907-457-6367 I have lived in Alaska since 1950: 1950-1952 Seward 1952-1954 Anchorage 1954-1955 Banner Creek 1955-1970 Delta Junction 1970-present Fairbanks I have worked with equipment for the past 34 years, mostly mining and transportation equipment. After becoming vested in Teamsters 959 I started Big State Equipment Co. in 1974 as a small rental - leasing company. Big State Equipment Co. has expanded since then to include all types of equipment; construction, logging, mining, and long haul transport and trailing equipment. We have also taken on the Tesoro Alaskan Petroleum distributorship for their full line of petroleum products in the interior and arctic coast area. All of my equipment experience has been in Alaska, specializing in design and speci- fications to meet arctic and subarctic conditions. I was instrumental in research and development of the lift axle now used to maximize hauling heavy payloads through out Alaska. I have functioned as a purchasing agent in charge of equipment acquisitions, maintenance supervisor, traffic manager, long haul dispatcher, road boss, safety director, operations manager, and general manager. I have also run my own truck stop (Delta Motors). I am involved in other businesses: Aurora Trucking Inc. North Pacific Freight Lines Delta Tastee Freez Northern Express Yukon Navigation/JV Hallougil Corp. I have no desire or plans to retire from the business world. I have no intentions of leaving Alaska. I find the new venture into electricial utilities both interesting and intriguing and must admit rual Alaska excites me. SPECIAL SKILLS AND EXPERIENCE EDUCATION EMPLOYMENT HISTORY GEORGE HILLIER 3749 Swenson Fairbanks, Alaska 99701 907/479-8377 Experienced in operating heavy equipment, 966 and 992 front-end loaders, 92-30 CAT, and 20- and 50-yard belly dump trucks. Extensive troubleshooting of electrical systems on trucks and trailers, along with repairs. Have repaired air systems and done brake jobs on trucks and trailers. Extensive research experience in mining operations and modes of mining in Alaska. Attended related seminars at the University of Alaska. Familiar with fueling operations for all types of aircraft, fixed wing and helicopters. Have operated suction dredges (4 inch and 8 inch) in Valdez and Central, Alaska. Have been bonded and licensed for a variety of special services. University of Cincinnati, Cincinnati, Ohio. Mechanical Engineering major for two years. High school graduate. Backhoe Operator, Alaska Unlimited Co., Fairbanks, Alaska. Leased backhoe to company. Operated backhoe on culvert crew in central Alaska. Foreman: John Brown. (8/83 to 10/83) Foreman, Mechanic, Welder and Operator, M.E. Construction, Delta II Barley Project, Fairbanks, Alaska. Duties as foreman included scheduling jobs for employees, ensuring proper construction of road, overseeing proper fill and grading of road and utilizing equipment to fullest potential. Maintained and repaired equipment as needed. Responsible for parts and supplies for all equipment and the job site. Acted as job site foreman when necessary, overseeing up to nine employees. Operated 966 and 992 front-end loaders. Owner: John Martin. (1982) Welder and Mechanic, Frontier Equipment, Prudhoe Bay, Alaska. Repaired 105 pickup trucks,welders and small pumps. Duties included ordering all parts, installing radios, windshields, side glass and other miscellaneous equipment. Did arctic winter modifications for feat and other equipment. Supervisor: Hank Hartman. (1980 to 1981 EMPLOYMENT HISTORY (CONT. ) PERSONAL REFERENCES Master Mechanic, Cargo, Alaska International Air, Fairbanks, Alaska. Responsible for maintenance of four forklifts, four KW Tractors, eight trailers, four fuel pumps, 12 aircraft winches, nine fuel trucks, two pump stands and two cranes. Performed all major overhauls on 250-200 Cummins engines. Repaired fuel trucks and pumping systems. Installed windshields and miscellaneous glass. Repaired and welded skids and other equipment. Loaded and unloaded C-130 Herc. Was ramp supervisor for both Cargo and Airport Fueling departments at various times. Have fueled all types of large and small aircraft, including helicopters. Supervisor: Bill Stevens. (1976 to 1980) Owner-Operator, Lynden Transportation, Fairbanks, Alaska. Operated Freightliner tractor, hauled pipeline materials to Prudhoe Bay and various camps. Required to repair own truck (inframe major on engine, rebuilt rear ends, front axle). Repaired other trucks cia times of high activity. Supervisor: Ken Williams. (1975 to 1976 Owner-Operator, Perkle Refrigeration, Madison, Wisconsin. Transported frozen goods and produce to Chicago from the West Coast, repaired own truck and equipment. (1974 to 1975) Qwner-Operator, Bekins Van Lines, Chicago, Illinois. ransported household goods to various locations in the United States. Required to repair own equipment. (1970 to 1974) Good health . . . born 6/22/46 . . . single . . . six feet, 223 pounds . . . trained in first aid . . . hobbies include boating, curling, car racing . . . Charter Member of the Curling Lions and member GFRA Racing. Personal and work references available on request. PERMIT NO. 2-152050-84-153 PAGE ONE OF STATE OF ALASKA DEPARTMENT OF TRANSPORTATION AND FUBLIC FACILITIES UTLEL IY Pe Rat A al canoe a TITLE: REGIONAL PERMIT OFFICER REGION: NORTHERN PETER EL ERASE EEE EEE EERE EES EEE EEE EERE EEE EEE EEE SETA EERE EEEEEESESRERSEERSH EE EE SEES EREEE ESE ESSE ESE S ES ES ED THE STATE OF ALASKA, acting by and through the DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, hereinafter called the DEPARTMENT, under provisions of AS 19.25.010 and AS 19.25.020, grants a - Utility Permit to: FAR NORTH UTILITIES of: CENTRAL ALASKA hereinafter called the Permittee, permission to construct, install and thereafter perform routine naintenance, use and operate a: 2400/4260 UG FOWER SYSTEM hereinafter called the facility, located as follows: ALONG THE CIRCLE HOT SFRINGS RD IN CENTRAL across, along or under property of the DEPARTMENT, acquired and utilized in the operation and nain- tenance of a State Transportation System, at the aforementioned locations and/or positions, and in strict conformance with plans, specifications and special provisions attached hereto and made a part hereof and not otherwise. In accepting this Utility Permit for the facility, the Fernittee agrees to comply with the provisions of AS 19.25.010, AS 19.25.020, AS 02.15.020 and AS 35.05.040; the terms, requirements and regulations as set forth in Title 17, Chapters 15 and 40 of the Alaska Administrative Code, as authorized under Administrative Procedures Act AS 44.62.010 - AS 44.62.4650 and the applicable policies, directives and orders issued by the Commissioner of the Department. The entire cost of routine maintenance operations of the Facility are to be paid for by the Permittee, and said Facility shall comply with all applicable codes. PERMIT NO. 2-152050-84-153 The Fermittee’s construction, installation and maintenance operations of the Facility shall be accomplished in such a manner as to in no way interfere with the use, operation and maintenance of the lepartment’s public property, and be performed with the mininum interference and interruption of the Nepartnent use upon and along the public property, or as hereinafter provided in the Departnent’s Special Provisions, attached hereto and made a part hereof, and shall at all times in no way endanger the general public in its use of the public property. The Department, in granting this Utility Permit, reserves the right to use, occupy and enjoy its property for a public transportation system and for public transportation purposes in such a manner and at such times as it deems necessary, the same as if this instrument had not been executed by the Department. If any such use by the Department shall at any time necessitate any change in location or manner of use of said facility, or any part thereof, such change or alteration shall be made by the Permittee. However, the Permittee shall be reimbursed in full by the Department for all costs incurred by making such changes or alterations to the Facilities existing in the property as indicated in Exhibit (A). : ' ‘ On public property being utilized for right of way on highways originally established as, or converted to, controlled access highways, ingress and egress thereto is limited to the location as designated by the Department. However, the Department may allow the Permittee ingress and egress whenever such is necessary to effect repairs and maintenance of its facilities and when no other access is available. The State of Alaska and the Department of Transportation and Public Facilities for the purpose of the Utility Permit, hereby disclaim any representation of implication to the Permittee that it retains any title in any public property other than the interest conveyed to the Department for specific purposes as described by the instrument conveying the land to the Department. The waiver of any breach of any of the terns or conditions of this Utility Pernit or provisions of the Administrative Code, by the Department shall be limited to the act or acts constituting such breach, and shall never be construed as being continuing or a permanent waiver of any such term or condition, unless expressly agreed to in writing by the parties hereto, all of which shall retain in full force and effect as to future acts or happenings, notwithstanding any such individual waiver or any breach thereof. Only the Commissioner or delegated official of the Department shall have the authority to waiver any term or condition herein contained. PERMIT NO. 2-152050-84-153 PAGE THREE. OF 0 _ The Fermittee shall not assign or transfer any of the rights authorized by the Utility Permit except upon notification to and approval by the Department. The Fermittee agrees to comply with all regulations concerning present or future use of the public property acquired with, or reimbursed by Federal Aid funds. The Fermittee shall give the Department not less than (10) days prior written notice, unless other- wise agreed to by the parties hereto, of the Fermittee’s intention to enter upon the Department’s property for the purpose of major maintenance or reconstruction, altering or resoval of a Facility, provided, however, that normal routine maintenance is excepted from this provision, and provided further, that in any instance of sudden emergency requiring prompt and immediate action to protect the public safty, or Lo mitigate damage to private or public property, no notification to the Department will be required for any work, and shall notify the Departnent and the Alaska State Troopers of the location of the emergency and extent of work required by the most expeditious means of communication as soon as reasonably possible to do so, and the Permittee shall take such measures as are required to protect the health and safty of the public for the duration of such emergency operations. The Fermittee agrees to forever indemnify the State of Alaska and the Department, or either of then, including its agents and contractors against and save then harnless fron all liability for damage to property, or injury to or death of persons, including all costs and expenses incident thereto arising wholly or in part from or in connection with the existence of construction, alteration, maintenance, repair, renewal, reconstruction, operation, use or removal of the said Facility as it pertains to the State property. The Permittee agrees to reimburse the Department of Transportation for actual costs of inspection and testing as required during the performance of the work proposed by the Permittee. The scope of inspection and testing shall be determined by the Regional Utility Engineer. The costs to be billed the Fermittee will be the actual Departnent’s costs incurred while performing the inspection and testing. The Permittee agrees by entering on the Departments property to indemnify the Department of Transportation and its contractors of all costs tangible or intangible that would be the result of any delay ina construction project of the Department’s caused by work done under this perait. The Fermittee is subject to all previous easements and Utility Permits and any damage to any other utility will be the Fermittee’s responsibility. PERMIT NO. 2-152050-84-153 PAGE FOUR of 4. The Permittee agrees to be responsible for the strict compliance of all applicable Federal, State, and local laws, regulations, codes and, ordinances. The Permittee agrees to be responsible for obtaining all other appropriate pernits or letters of non- objections needed from Federal, State, local agencies or lessees. The Fermittee may be required, within thirty (30) days after completion of any inprovement placed upon or in the premises herein, deliver to the Department as-built drawings showing the location and construction specifications of said inprovenent. This Utility Permit is issued under the provisions of applicable Alaska Statutes and Administrative Code effective as of the date of execution of this instruction by the Department. The Fermittee agrees that the Facility will be constructed in accordance with the attached: A. plans dated Q-/- BY TLE » consisting of dpplidkin.» ahetel which, by this reference, are made a part hereof. SPECIAL FROVISTONS : FEE PEERESERAEEE EERE RE SEEAEE ELE SERRA REEE REESE ERERAEAERESEEEEED ERTS EREERES ES RER EASA EREESESE SEES ERED THE PERMITTEE SHALL BURY THE LONGITUDINAL FACILITY AT A MINIMUM DEPTH OF 3 FEET BELOW THE GROUND SURFACE. THE FERMITTEE SHALL BURY THE ROAD CROSSING AT A MINIMUM DEPTH OF 4 FEET BELOW THE ROAD SURFACE. FERHANENT DURABLE MARKERS SHALL BE PLACED AT 1,000 FOOT INTERVALS AND ALL POINTS OF DIRECTIONAL CHANGE. THE FERMITTEE SHALL DISPOSE OF TREES, BRUSH, OR OTHER NATURAL GROWTH BY MECHANICAL CHIPPING OR HAULING AWAY. THE FERMITTEE SHALL LEAVE THE RIGHT OF WAY IN A CLEAN CONDITION ACCEPTABLE TO THE DEPARTHENT. onsideration of the benefits accruing to the Permittee by ons of the foregoing agreement, this said agreement is by accepted by the Permittee, and the said Permittee by agrees to comply with all of the terms, provisions, itions, and stipulations therein contained. d this jq'hday of Ocfaobec »19 BY. COMPANY OR PERMITTEE VacNocth Unbbes. (Aud) Lo Bee Title (Gif Maney st Title OWLEDGEMENT OF COMPANY OR PERMITTEE E OF ALASKA ) A. JUDICIAL DISTRICT) T, REMEMBERED that on this | l day of Octo pe Y ’ Y, before me, the undersigned, a Notary Public 0 e e of Alaska, personally appeared RAvLLA & cee and to me personally known and known to me to be the identi- individuals named in and who executed the foregoing per- and acknowledged the said instrument to be the free and ntary act and deed of the above named company for the and purposes therein expressed and on oath stated that were authorized to execute said instrument. ITNESS WHEREOF, I have hereunto set my hand and affixed Seal of my Office the day and year first above written. omission Expires: W~ lo~ —_> a_i “AWotary Public (12/83) Page 3 of Sm Permit No.24S2OS0~8 The State of Alaska, acting by and through its Depa of Transportation has caused this Utility Permit to executed on the day and year herein acknowledged be STATE OF ALASKA DEPARTMENT OF TRANSPORTATION By Title Chief, Technical Serviges DEPARTMENT OF TRANSPORTATION ACKNOWL EDGEMENT STATE OF ALASKA ) 4th JUDICIAL DISTRICT) BE IT REMEMBERED that on this ayof Yin 19 » before me, the undersigned, a Notary Public the a, personally appeared =e of the Departme ransportation e identical pers executed the foregoing Agreement and he acknowledge me that he executed the same for and on behalf of t State of Alaska, Department of Transportation with authority so to do, and for the uses and purposes t expressed, IN WITNESS WHEREOF, I have hereunto set my hand and fixed the Seal of my Office the day and year above written, My Commission Expires: My Commission Expires fom, dite March 14, 1988 A Notary Public Federal Highway Administration Bureau of Public Roads 5 - — = : Permit No2Y~5ZO045 STATE OF ALASKA DEPARTMENT OF TRANSPORTATION APPLICATION FOR UTILITY PERMIT ON HIGHWAY RIGHTS-OF -WAY CO III ICI OIA IIT TAI I TAT ATA IA IAI TIA TATA ATTA AA Application is hereby made for permission to place, construct and thereafter maintain an : ‘ trics oy puried eles cable facility in, on, along or across the Rights-of-Way of the Department o anspo (/3z050 cbs 2.01— ©.¥0) |. The Facility is to be located: _j/atilé'circle Hot. Springs Rd., Central Alaska _..99730. 0. nei. Il. Location and extent of required clearing: 15 feet from the edge of/highway _ CQ7‘t feom I1l. Joint use with: — N/A _______ In accordance with: _N/A - ee IV. Facility to be constructed in accordance with the following: Plans dated 9/1/84 =, consisting of 5KVA buried anaconda armour~shield electric cabl ad. glad i techie b. Specifications dated . oes consisting of : pages. c. In conformance with (Code) _ nesc V. Work to commence on or about 10/15/84 and to be completed on or about _ 12/15/84 The applicant in carrying out any or all of the work herein above mentioned or referred to in this ap and in the authorized Utility Permit issued therefore, shall strictly conform to the terms of such Utility Alaska Statutes 19.25.010 and 19.25.020; regulations as set forth in the Alaska Administrative Code, Title Highways, Chapter 15, Engineering - Utility Permits, and any revisions thereto, and such policy directives issued. The applicant shall comply with regulations of all other governmental agencies and the work shall be accomplished in a manner that will not be detrimental to the highway and appurtenances nor in any manner e the traveling public. APPLICANT: FAR NORTH UTILITIES ADDRESS: P.O. BOX 876, PALMER, ALASKA 99645 PO Bey 27 CenTead AK, 79730 Pag ZF} : Permit No 2-/S 20st ELECTRICAL OR COMMUNICATION OVERHEAD FACILITY: NUMBER OF CONDUCTORS: VOLTAGE & PHASE: CONDUCTOR TYPE & SIZE: STRUCTURE TYPE: se! MINIMUM VERTICAL CLEARANCE: a OFFSET FROM HIGHWAY CENTERLINE: LONGITUDINAL FACILITY LENGTH: : or CROSSING ANGLE: UNDERGROUND FACILITY: HUNBER OF CONDUCTORS: 5_KVA Cenk deaf’) VOLTAGE & PHASE: 2400 volts 3 phase CONDUCTOR TYPE & SIZE: 9-0 Copper, rubber shielded SIZE & TYPE OF ENCASEMENT: — cLX DEPTH BELOW DITCH ELEVATION: inches GITUDINAL FACILITY LENGTH: 2 miles ¢ 36. a7* From &. an OFFSET FROM HIGHWAY CENTERLINE: 10 feet from ditch_ EM ROSSING ANGLE: METHOD OF CROSSING: BORE eee ov . JACK OPEN CUT CODES APPLICABLE: ADDITIONAL INFORMATION: haus ssien ls (AES Tops tae . ads Lan sitER Ss: ot. Sader oe | Permit No,2-/52030 - aunt