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HomeMy WebLinkAboutAEA Board Meeting Oct 2021Alaska Energy Authority BOARD MEETING MINUTES Wednesday, October 27, 2021 Anchorage, Alaska 1. CALL TO ORDER ALAS KA ENERGY AUTHORITY Chair Pruhs called the meeting of the Alaska Energy Authority to order on October 27, 2021 at 8:34 am. A quorum was established. 2. ROLL CALL BOARD MEMBERS Members present: Chair Dana Pruhs (Public Member); Julie Anderson (phone) (Commissioner DCCED); Anna MacKinnon (phone) (SOA-DOR); Albert Fogle (Public Member); Bill Kendig (Public Member); and Julie Sande (Public Member). 3. AGENDA APPROVAL Chair Pruhs requested to add Election of Vice -Chair under Item 6C. New Business. There was no objection. MOTION: A motion was made by Mr. Kendig to approve the agenda, as amended, adding Election of Vice -Chair under Item 6C. New Business. Motion seconded by Mr. Fogle. The motion to approve the agenda, as amended, passed without objection. 4. PRIOR MINUTES - September 30, 2021 MOTION: A motion was made by Mr. Fogle to approve the prior minutes of September 30, 2021, as presented. Motion seconded by Mr. Kendig. The motion to approve the minutes of the September 30, 2021 minutes passed without objection. S. PUBLIC COMMENTS (2 minutes per person) There being no members of the public online or in -person wishing to make a public comment, Chair Pruhs closed the public comment period. 6. NEW BUSINESS A. 2021 Audit Review REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.OR 813 West Northern Lights Boulevard, Anchorage, Alaska 99503 T 907.771.3000 Toll Free 888.300.8534 F 907.771.3044 Chair Pruhs requested Curtis Thayer, Executive Director, introduce the 2021 Audit Review. Mr. Thayer invited Dona Keppers, Chief Financial Officer, and Lealan Miller, Eide Bailly, to present the revised Draft Financial Statements provided today. Ms. Keppers noted the revisions include added language regarding the SSQ Line, and added language regarding Susitna-Watana Hydroelectric Project. The revisions will be discussed during the presentation. Mr. Miller advised that a detailed review was presented at the Budget and Audit Subcommittee (BAS) last week. He thanked staff and AEA for their efforts in providing the information and working through the audit process during this first year. Mr. Miller discussed that the auditors submitted a clean opinion for the financial statements presented. The unmodified opinion reflects that the financial statements are materially correct. As a result of the audit procedures this year and an issue that carried over from last year regarding Power Cost Equalization (PCE), there were some amounts that should not have been recorded in the prior audit report. The previous auditor did not believe any changes needed to be made from a materiality perspective. Mr. Miller noted that as a new auditor, Eide Bailly has a different threshold and is restating the beginning net position to reflect the error that was reported last year of approximately $7.4 million. Audit standards require this information is brought to AEA's attention. It does not affect the clean audit opinion. Mr. Miller informed that there was another incorrect reporting of $2.2 million as a due -to the State of Alaska instead of an operating transfer. This posting was corrected and restated. It does not affect the clean audit opinion and does not change any current year operation activities. The Management's Discussion and Analysis on page four was compiled by Ms. Keppers and Salina Bearden, Controller. It reviews the year-to-year changes of the financial statements. Mr. Miller discussed the Statement of Net Position, Balance Sheet, found on page 18 - 20. The total amounts did not change significantly from last year to this year. There were no new line items added and no new line items deleted. Mr. Miller highlighted the beginning of the footnotes on page 28. These notes provide additional details and explanations regarding investment types, long -tern debt, capital assets, and other information in the financial statements. Note 11 on page 49 was the only new footnote providing detail regarding the prior period adjustment that affected net position. The correction did not change the income or expense line items. Chair Pruhs asked Mr. Fogle if this is the information that was reviewed at the BAS. Mr. Fogle reported that the BAS spent several hours last week reviewing the draft audited financials. He informed that the BAS was satisfied with the answers to their questions. Chair Pruhs requested that Ms. Keppers review the modifications that were made to the final draft. Ms. Keppers noted that the last paragraph on page 28 was added. The paragraph begins, "In December 2020 the Authority purchased the Sterling to Quartz section of the 115kV transmission line from Homer Electric Association." The asset is on the balance sheet, and the disclosure has been updated. There were no further comments from the BAS. Mr. Thayer recognized Ms. Keppers, Ms. Bearden and their team for their diligence and time Alaska Energy Authority Page 2 of 12 consuming efforts to finalize the financial statements. Chair Pruhs asked if there is any difference on the PCE reporting and requested additional explanation regarding the PCE reporting. Ms. Bearden explained that the sweep did not occur this year. The financials show that the PCE has come in. The financials reflect a higher net position. Next year, the net position will remain approximately the same. There will not be the fluctuation that has occurred in the previous few years. Mr. Thayer informed that there was a legal case that was resolved this summer which advised that there was no longer a need for a sweep. This will allow for an easier transition on the books. Chair Pruhs requested additional information regarding the rate of return on the endowment. Mr. Thayer discussed that the endowment is managed by the Department of Revenue (DOR). The earnings this year were the highest they have ever been at $150 million. The earnings last year and previous respective years were $48 million, $72 million, $78 million, $100 million, and $120 million. Mr. Thayer explained the cascading disbursement of earnings. The first tranche of the earnings goes to PCE, which is about $30 million. The second tranche of the earnings goes to community assistance to rural Alaska, which is managed by the Department of Commerce, Community and Economic Development (DCCED), which is capped at $30 million. Of the additional earnings left available, up to $25 million can be used for the Bulk Fuel Revolving Loan Fund, managed by DCCED, or Powerhouses, or the Renewable Energy Fund (REF). Mr. Thayer indicated that the Revolving Loan Fund does not need any capitalization this year. Staff has proposed that the available $25 million for the FY23 budget is split between Powerhouses and the REF. Mr. Thayer informed that the Federal partners for the Powerhouses have the ability to provide a match to half of the Powerhouse funding. The excess earnings beyond the listed expenditures will go back into the endowment fund. Mr. Thayer explained that the earnings amount that can be utilized is based on a five-year average. Chair Pruhs asked for the cause of the increase in investment earnings from $48 million to $150 million. Mr. Thayer noted that his understanding is that the funds were previously liquid during the time that possible legislation would disband the funds. This did not occur. The Governor is opposed to disbanding. The DOR has since placed the funds into more aggressive investments, and yielding the return. Ms. MacKinnon recognized the DOR for managing the assets to provide such a return to PCE and to the people of Alaska. The Legislature is partially responsible for these funds and she recognized Senator Lyman Hoffman for providing the cascading effect that will benefit multiple entities'and all Alaskan communities, including urban areas. Ms. MacKinnon recognized Zach Hanna and noted he gave a presentation regarding the investments and money managers available in the State's portfolio. She discussed that the State's investment managers compete with Callan and other money mangers and have met or beaten their targets. Ms. MacKinnon informed that because the funds were invested in equities, they participated in the rise of the market. She understands that equity investments are susceptible to market downturns and knows that DOR is Alaska Energy Authority Page 3 of 12 watching the fund and looking for opportunities. MOTION: A motion was made by Mr. Fogle to accept the 2021 Alaska Energy Authority Audited Financial Report, as presented today at this Board meeting. Motion seconded by Mr. Kendig. A roll call was taken, and the motion to accept the 2021 Alaska Energy Authority Audited Financial Report passed unanimously. B. AEA Board Schedule for 2022 Mr. Kendig asked about the status of the suggestion to conduct a meeting in Juneau. Chair Pruhs believes that it is premature to plan other locations while COVID-19 is still affecting decisions. Mr. Kendig informed that the Alaska Power Association and the FCC will be traveling to Juneau this year to hold meetings. Chair Pruhs agreed that it would be nice to travel to other communities for meetings. He stated that Juneau is interesting, especially during the session, but he does not know what issues will be up front or if AEA wants to be in Juneau during that time. Chair Pruhs requested that the suggestion of traveling is put on hold at the moment. MOTION: A motion was made by Mr. Kendig to approve the proposed 2022 AEA Board Meeting Schedule, as presented. Motion seconded by Mr. Fogle. The motion to approve the proposed 2022 AEA Board Meeting Schedule, as presented, passed without objection. C. Election of Vice -Chair Chair Pruhs noted that the Vice -Chair seat previously held by Bernie Karl needs to be filled. He recommended Ms. Sande for the Vice -Chair position. MOTION: A motion was made by Mr. Fogle to nominate Ms. Sande as Vice -Chair for Alaska Energy Authority. Motion seconded by Mr. Kendig. Commissioner Anderson asked if the motion could include both AEA and AIDEA. Chair Pruhs noted that the nomination for AIDEA will have to be conducted at the AIDEA Board meeting. Ms. MacKinnon expressed appreciation to Ms. Sande for her valuable small business, community, and government perspective. Ms. MacKinnon stated that Ms. Sande's comments are always on - point and she believes Ms. Sande will do well in the position of Vice -Chair. Ms. MacKinnon requested affirmation from Ms. Sande that she is open to taking the position. Ms. Sande thanked the Board for their support. She noted her discussion with Chair Pruhs this morning expressing interest in the position and she would be happy to serve. The motion to elect Ms. Sande as Vice -Chair passed without objection. Alaska Energy Authority Page 4 of 12 Chair Pruhs informed that he had an email discourse with BAS Chair Mr. Fogle regarding Mr. Kendig replacing Vice -Chair Sande as a BAS member. Chair Pruhs thanked Mr. Kendig. Ms. MacKinnon asked if AEA has been notified of a replacement for Mr. Karl. Chair Pruhs indicated that his intent was to review that information during Board Comments. He informed that there was an announcement last night for a replacement. The new appointee will be Bill Vivlamore. He is a business owner in Fairbanks. Chair Pruhs expects Mr. Vivlamore will undergo the new Board member orientation prior to attending his first meeting in December. Chair Pruhs commented that Mr. Vivlamore will be welcomed at the December meeting. 7. OLD BUSINESS A. AK Utility Relief Program - Update Mr. Thayer reviewed that AEA had been asked by DCCED to implement the Alaska Utility Relief Program. The Legislature awarded $7 million during the last budget cycle to assist utilities that had bad debt related to COVID-19 for residential customers. Staff has created a signed memorandum of understanding (MOU) with DCCED and grant agreement. Mr. Thayer expressed appreciation to Commissioner Anderson. The program went live last week. Approximately 200 utilities were notified and they have 30 days to present their qualifying materials. Mr. Thayer explained that if the total requested amount is greater than the $7 million, a pro rats share may be applied. He noted that some of the local communities used their COVID-19 relief funds for residential utility debt relief. The qualifying time period has a distinct start date and end date connected to the Governor's declaration of a public health emergency. The program is receiving positive feedback. Commissioner Anderson expressed appreciation to Mr. Thayer and staff for implementing the program. There were no additional comments or questions. S. DIRECTOR COMMENTS A. Response to Board Questions i. List of existing EV Charging Stations Mr. Thayer provided the requested list of existing EV charging stations. He informed that there is an available phone application that includes the location of the charging stations. Since the written list was compiled, an additional three business locations have installed EV charging stations. Mr. Thayer informed that the list will be kept current and the Board will be updated on a regular basis regarding the charging stations and the number of electric vehicles in Alaska. Mr. Fogle thanked Mr. Thayer for providing the list. He asked if the NEMA 14-50s are the fast chargers. Mr. Thayer noted that he does not have the answer and will provide the answer after Alaska Energy Authority Page 5 of 12 the meeting. Mr. Fogle asked if this list has been shared with the Alaska Electric Vehicle Association (AKEVA). Mr. Fogle commented that a representative from AKEVA previously expressed concern that there was an EV charging station hole in the corridor in the Mat -Su Borough. Mr. Fogle identified that the list shows EV charging stations in Palmer, Wasilla, Willow, Talkeetna, and Trapper Creek. Mr. Thayer discussed that there is a gap in locations with the fast chargers. He explained that the fast chargers are the way of the future, as the technology is shifting. Some of the high performance electric vehicles require ultra fast -charging that provides a full charge in 20 minutes and utilizes 400-amp service. Mr. Thayer noted that a challenge is that some of the locations do not have three-phase power necessary for the fast chargers. The Level 2 chargers take several hours for a full charge. Chair Pruhs requested additional information on the charging process, if each car takes multiple hours to charge. Mr. Thayer agreed that electric vehicles get in line and wait for their turn to charge. He referenced an article and a picture from Washington during a long weekend showing a lengthy EV line with a two-hour wait for electric charging. Chair Pruhs asked how many electric vehicles can the stations charge that AEA has assisted in funding. Mr. Thayer noted that most of AEA`s fast charging stations charge at least two vehicles and in some locations, there are Level 2 chargers installed in addition to the fast -chargers. AEA is involved with nine locations with a total of 15 fast chargers and a number of Level 2 chargers. Chair Pruhs asked for discussion regarding the length of the life of EV lithium -ion batteries and disposal treatment and methods. Mr. Thayer does not have that information. He discussed that the value in an EV tends to be the battery. It is hard to replace the battery because it is the floor of the car. The replacement of the battery is one of the challenging technologies that has to be resolved. Chair Pruhs discussed the challenges of using lithium batteries in the aviation sector. He asked if the fire issue with lithium batteries has been addressed within State regulation. Chair Pruhs expressed concern that lithium batteries will be dumped or junked because of the expense of disposal. Mr. Thayer understands that the EV is built around the battery and the battery is not easily removed from the floor. Mr. Fogle commented that he believes Tesla has a recycling process for the batteries. Chair Pruhs asked Mr. Thayer if AEA needs to make recommendations regarding regulations on battery disposal. Mr. Thayer informed that AEA has the Electric Vehicle Working Group to discuss issues and AEA is also working on a policy that will involve other State agencies, including Department of Transportation (DOT). There is a current direction to have DOT fleet vehicles go electric. Mr. Thayer believes AEA needs to help identify these issues and work with the State going forward. Ms. MacKinnon agreed that Chair Pruhs raised excellent points. She believes that AEA should take time to reach out to DOT, the Administration with the Department of Conservation, or to the Elon Musk group that provided the foundation for the grant. Ms. MacKinnon does not believe that this is a new issue and feels that guidance could occur to raise the issue of providing a path for disposal with the Administration and with the Legislature. Ms. MacKinnon asked if Mr. Thayer Alaska Energy Authority Page 6 of 12 knows if EVs are less likely to be involved in accidents. She indicated that as more EVs are on the road, the possibility increases that EVs will be involved in accidents that could total the vehicle. Ms. MacKinnon believes that an update should be provided to the Board discussing the positions that other communities in America are taking regarding the batteries. Chair Pruhs discussed that when he was growing up in Fairbanks, there was a battery shop that disposed of batteries and it is now a Superfund site. Chair Pruhs commented that lithium batteries are more volatile than lead -acid batteries. He stated that he is naive about lithium batteries and wants to understand if preemptive measures should be taken to avoid future issues. Mr. Thayer indicated that staff can conduct additional research and that staff is engaged with working groups in other Western states. Ms. MacKinnon requested staff reach out to AKEVA and ask if they know of any concerns with the batteries and if they know the methods of battery disposal when the life of the battery has ended or when the vehicle is damaged. Ms. MacKinnon commented that one individual from the group has criticized AEA and she requested staff proactively communicate with them. Mr. Thayer agreed. ii. AEA - UGF Lookback Slide Mr. Thayer informed that the AEA-UGF Lookback Slide is for informational purposes that was contained within the budget presentation for Office of Management and Budget (OMB). He noted that the peak was in 2016, and since then, a drop of 88% of UGF funding has occurred. The UGF has remained flat since 2020. The UGF funding includes administrative time that is not specifically charged to other codes. Mr. Thayer discussed the recent suggestion that employees have the ability to take up to two hours off to get the COVID-19 vaccine shots and that time is charged under the UGF code. Vice -Chair Sande expressed appreciation to Mr. Thayer for including the information in the visual form. She requested that Mr. Thayer explain UGF funding to members of the public who may be unfamiliar with the term and why this is such an important demonstration. Mr. Thayer explained that UGF are undesignated funds from the general fund. The majority of AEA funding is dedicated to specific projects. AEA has $847,000 for operating funds from the State that is not designated out of the $40 million budget. Mr. Thayer noted that he will provide the pie chart showing AEA's $40 million budget distribution at the next Board meeting. Vice -Chair Sande asked if AEA is showing a decrease in reliance on the operating funds from the State of Alaska every year. Mr. Thayer agreed and noted an ongoing conversation with OMB regarding the ability for an additional decrease of funds. The provided slide gives a historical perspective compared to the current perspective. Chair Pruhs commented that Mr. Thayer and Alan Weitzner, Executive Director AIDEA, have been working together regarding State funds and the two entities. Chair Pruhs requested an update. Mr. Thayer explained that there is no crossover of State funds between AEA and AIDEA. The arrangement is that AEA can borrow up to $7.5 million from AIDEA during a funding cycle. AEA Alaska Energy Authority Page 7 of 12 has not utilized that option. All of the previous cross -subsidies have been eliminated, including Bradley Lake. The majority of the employees of AIDEA are leased to AEA with payroll. Mr. Thayer discussed the next slide that shows the operating budget and funding sources. The operating budget is relatively flat and has not changed over the last three years. Mr. Thayer discussed that the capital funding sources for last year received $5 million from the State Legislature and parlayed that into $12.5 million of Federal funding. This year, AEA was able to get $10.5 million from the State Legislature and parlayed that into $46 million, of which $21 million is the BUILD Grant. The $4.7 million listed was received from the Legislature in August with the Renewable Energy Fund (REF). Mr. Thayer commented that AEA's capital and Federal Receipt Authority in projects tripled this year. This is mainly for powerhouses and bulk fuel projects. Chair Pruhs asked Mr. Thayer to discuss what percentage of project funds goes to overhead, management, design, development, jobs, and physical infrastructure. Mr. Thayer discussed that the project distribution does not vary widely. The Federal grant awards are usually less than 10% for overhead. This is considerably lower than DOT. Mr. Thayer gave the example that the $7 million program for DCCED is estimated to have overhead of $170,000. He noted that the budget allows for $355,000 for staff to administer the PCE program, and an additional $384,000 to help with rural projects and PCE issues. Mr. Thayer commented that the DOR charges more to manage the fund than AEA charges to disburse the funds to 200 communities every month. Chair Pruhs acknowledged AEA for maintaining a 10% to 12% overhead, when other DOT projects have grown to 30% overhead due to regulations, rules, requirements, and reporting. He suggested that the project efficiency continue. Mr. Thayer agreed. He informed that the Volkswagen Settlement was $8.7 million. The overhead was less than 15% to administer. Vice -Chair Sande expressed appreciation for the discussion regarding the graphs. She believes the graphs show AEA's operational efficiencies. Vice -Chair Sande thanked Mr. Thayer and staff. She requested Mr. Thayer provide additional information on the processes to remain efficient in the flat years, as other increases occurred, such as staff wages, inflation, or insurance increases. Mr. Thayer explained that a number of the staff are dedicated to capital projects and their salaries are within the capital side and not within the operating side. He noted that there is a vacancy factor and some of those are shared with AIDEA. There were no other questions. B. Railbelt Owned Assets Mr. Thayer reviewed the Railbelt Owned Assets Update included in the packet. He discussed that the update includes details regarding the snow load monitoring, the static var compensator service, and the regular Intertie Management Committee meetings. Mr. Thayer reported that the Bradley Lake area has been abnormally dry and the water levels were lower than normal. Upcoming storms should affect the water level. Chair Pruhs noted that the BPMC approved a budget to start the transmission line design to Alaska Energy Authority Page 8 of 12 upgrade the Quartz Creek to Soldotna Line segment. He asked if that upgrade will come out of the cash flow as approved project work. Mr. Thayer noted that upgrade is not currently approved required project work. The utilities are funding the design out-of-pocket, subject to Department of Law. There were no additional questions. i. Dixon Glacier Memo Mr. Thayer reviewed the Dixon Glacier Memo and hopes to have additional information at the next Board meeting. He informed that there is a lake in front of Dixon Glacier as the glacier is receding that could be utilized. The primary alternatives include diverting the lake to Bradley Lake, diverting to a runner river, or combining the alternatives and using a runner river and then going to Bradley Lake. The options range from $225 million to $500,000 million. Staff has been working with the utilities. Float gauges have been installed in the river. Water rights have been requested and work has begun with Federal Energy Regulatory Commission (FERC) regarding jurisdiction. Mr. Thayer discussed that Dixon Glacier is a 10-year project and these are the beginning stages. This project provides the possibility to increase Bradley Lake's power by 50% or more. Bradley Lake power is currently the cheapest power available. Mr. Thayer complimented Bryan Carey, AEA, for developing the possibility of the expansion. Chair Pruhs asked if Bradley Lake Project Management Committee (BPMC) is reviewing which projects to prioritize; deconstraining the intertie system from the existing hydro -electric project versus adding 50% more power to the system that is at -risk for constraint. Mr. Thayer informed that there are two distinct ongoing projects with the utilities. One is reviewing the options to deconstrain the power from Bradley Lake into Anchorage, including redundancy and improvements to the SSQ Line. Chair Pruhs asked if those options would occur before the Dixon expansion. Mr. Thayer agreed. Mr. Thayer explained that the upgrade work on the SSQ Line can begin next year. It is a multi- year process and can be conducted under the Power Sales Agreement using the excess payments of $11.5 million, as it was deemed required project work by Department of Law. Discussions regarding other project work will continue to occur with the Board, as plans are developed. Chair Pruhs asked where the BPMC funding originated for the feasibility determination of the Dixon Expansion. Mr. Thayer stated the utilities are paying for the funding. Chair Pruhs asked if any portion of the $11.5 million will ever be used for studies. Mr. Thayer anticipates the $11.5 million will be used for projects that are deemed required project work by the Department of Law. Chair Pruhs asked if the utilities expect to have their feasibility funding reimbursed once a project becomes reality either through long-term financing or cash flow. Mr. Thayer assumes that the utilities will recover the funding. The current process and phase is in the tens of thousands of dollars with Dixon. Chair Pruhs suggested that a ledger is kept to identify the dollars that have been expended. Mr. Thayer informed that is the current process and he can provide the information to the Board. Alaska Energy Authority Page 9 of 12 ii. Hydro Update Memo Mr. Thayer noted that the Hydroelectric Program Update is currently on a monthly schedule and will be updated on a quarterly basis. There are currently two active REF hydroelectric related projects of Thayer Creek and FiveMile Creek. There are a total of five REF hydroelectric projects listed within the update. C. Rural Update Mr. Thayer discussed the Rural Programs update. He noted the current supply chain issues and logistic challenges in getting equipment. Staff is preparing to make large orders so that the contractors can begin building powerhouses and bulk fuel facilities next year. Mr. Thayer requested Tim Sandstrom, Director of Rural Programs, to provide additional information. Mr. Sandstrom discussed that staff has identified many long -lead items that cannot be ordered on a project -by -project basis, as was previously administered. He noted that the purchase of transformers are back -ordered for a year. This does not include delivery time. The purchases are pre -project inventory buys that will move from AEA's books to the project's books as the project develops. Mr. Sandstrom discussed that the powerhouse modules designs have been standardized to a great extent and the distribution systems tend to be common throughout rural Alaska. Chair Pruhs asked when the warranty begins if the item is kept in stock. Mr. Sandstrom noted that question is being discussed with manufacturers and suppliers, especially with the engine gensets. The request is for the warranty to begin upon installation, rather than upon delivery. He noted that some manufacturers are requesting a preventative maintenance plan while the item is in custody and waiting for the up to two years wait for construction. Extended warranties are also being utilized. Chair Pruhs indicated his experience with a recent installation of a power system in a facility in Fairbanks through Cummins where the item sat for six months, and the warranty began when Cummins turned the system on and ran their tests. Mr. Sandstrom noted that he would like to continue the discussion with Chair Pruhs. Mr. Thayer informed that AEA was successful in getting an additional $1 million in funding, outside the normal funding for Rural Programs and Projects. The Denali Commission has a new and supportive Federal Co -Chair Garrett Boyle. Mr. Thayer discussed the continued impacts and issues from COVID-19 that continues to be a challenge. He informed that it is becoming increasingly difficult to secure a Circuit Rider position. One of the reasons is that the salary level of close to $100,000 of overtime is unable to compete with other offers of $150,000 to $175,000. Chair Pruhs commented on the employment phenomenon that is currently occurring. He asked if it would make sense to subcontract the Circuit Rider Program to a third -party. Mr. Sandstrom noted that option is utilized to a certain extent. There are three or four contractors on staff that Alaska Energy Authority 12 Page 10 of are utilized to leverage the Circuit Rider funding when staff cannot respond due to shortages. Chair Pruhs emphasized the need for the Circuit Rider Program to be able to respond. He noted if there is an additional cost to a component because of the conditions of the day, the issue has to be addressed in the short-term. Mr. Thayer reported that the Circuit Rider Program is primarily funded by Federal dollars. There were no additional questions. D. Denali Commission Awards Mr. Thayer informed that the Denali Commission funding update is included in the packet. E. Power Project Fund Dashboard and Loan Report Mr. Thayer reviewed the Power Project Fund Dashboard and Loan Report. There are several applications outstanding and one newly approved application. The one delinquency is not unusual for the entity and is in the amount of $1,100. A formula is utilized to determine the late fees assessed. F. Community Outreach Mr. Thayer discussed the community outreach has been active. There are currently two staff members attending Electrify Alaska in Cordova. Mr. Thayer indicated that he and Mr. Weitzner will travel to Fairbanks on November 9t" to speak to the Chamber of Commerce and to spend time with the staff of Golden Valley Electric Association (GVEA). Chair Pruhs commented that he has noticed over the years that the majority of AEA work is in rural Alaska and the majority of staff travel is not in rural Alaska. He encouraged senior staff to travel to the 190-plus rural Alaskan communities that AEA serves. He believes this will be beneficial in understanding the issues and concerns. Chair Pruhs noted that the occasion could be a community event or a celebration. Mr. Thayer expressed appreciation for the comments. He highlighted that Mr. Sandstrom has traveled to rural Alaska. He explained that COVID-19 has added layers of difficulty to travel and has reduced the opportunities in the communities. G. Articles of Interest - Included in packet. H. Next Regularly Scheduled AEA Board Meeting Wednesday, December 1, 2021 Mr. Thayer advised that the next scheduled AEA Board meeting is Wednesday, December 1, 2021. 9. BOARD COMMENTS Mr. Kendig confirmed that Matanuska Electric Association (MEA) received the notice from Mr. Thayer regarding the Alaska Utility Relief Program and their staff appreciates AEA's efforts to assist members impacted by COVID-19. Alaska Energy Authority 12 Page 11 of Mr. Fogle expressed appreciation to Mr. Thayer, Ms. Keppers, staff, and the new auditors for their efforts in delivering the audited financials in a timely manner. Ms. MacKinnon echoed Mr. Fogle's comments and expressed appreciation for the timeliness of the financials in order to conduct the necessary due diligence. She thanked Mr. Thayer and his team for working with AKEVA to ensure an EV corridor is mapped out and available for charging. Ms. MacKinnon expressed appreciation to Chair Pruhs for his leadership in thinking proactively about the environment regarding the disposal of the EV batteries. She commented that an article was in the paper discussing the receding glacier near Bradley Lake and the potential opportunity it may present for a renewable energy source. Ms. MacKinnon added that Board members and Alaskans are watching to see how renewables can be added into the energy portfolio. Vice -Chair Sande echoed thanks to Mr. Thayer, staff, and the auditing team, and for adding the graphics illustrating AEA's operational efficiencies. She appreciates the agency's efforts of being less reliant on UGF funds. Vice -Chair Sande noted that the review of the audited financials last week and again today gave her the opportunity to acknowledge the programs, communities, and Alaskan lives that are impacted by the work of AEA and staff. Vice -Chair Sande noted that in her previous work in healthcare, one of the ways the board would focus on quality was to regularly highlight a patient's story. This would help remind staff of the mission and how their hard work impacted lives. Vice -Chair Sande asked Mr. Thayer if staff would be willing to highlight work stories, especially from rural Alaska. She thanked the members of the Board for their support. She added that she will work hard to fill the shoes of the Vice -Chair. Commissioner Anderson echoed the previous comments. She thanked Mr. Thayer and his team, and welcomed Vice -Chair Sande and her leadership. Chair Pruhs expressed appreciation to the Board members and especially to the BAS members for their work and efforts with staff and the new auditor on the financials. He welcomed Mr. Kendig as a new member to the BAS. Chair Pruhs thanked Vice -Chair Sande for accepting responsibility as Vice -Chair. He commended all of the AEA employees for their impressive efforts and results. 10. ADJOURNMENT There being no further business of the Board, the AEA meeting adjourned at 10:06 am. `tit►�a Uiiil Ackfk ••'" r+++ CPOFIPORA4 Curtis Thayer, Executive Director / Secretary Q SEAL Alaska Energy Authority 4$. �••rrraiiirraa+. a� Alaska Energy Authority Page 12 of 12