Loading...
HomeMy WebLinkAboutAEA Board Meeting June 2021Alaska Energy Authority BOARD MEETING MINUTES Wednesday, June 23, 2021 Anchorage, Alaska 1. CALL TO ORDER ALAS KA ENERGY AUTHORITY Chair Pruhs called the meeting of the Alaska Energy Authority to order on June 23, 2021 at 8:31 am. A quorum was established. 2. ROLL CALL BOARD MEMBERS Members present: Chair Dana Pruhs (Public Member); Vice -Chair Bernie Karl (Public Member); Sandra Moller (DCCED, Designee for Commissioner Julie Anderson); Anna MacKinnon (SOA-DOR); Albert Fogle (Public Member); Bill Kendig (Public Member); and Julie Sande (Public Member). 3. AGENDA APPROVAL MOTION: A motion was made by Mr. Fogle to approve the agenda. Motion seconded by Mr. Kendig. The motion to approve the agenda passed without objection. 4. PRIOR MINUTES - May 19, 2021 MOTION: A motion was made by Mr. Kendig to approve the prior minutes of May 19, 2021. Motion seconded by Mr. Fogle. The motion to approve the minutes of the May 19, 2021 minutes passed without objection. 5. PUBLIC COMMENTS (2 minutes per person) Chair Pruhs requested that each person please state their name and affiliation, if any, and to comment on AEA agenda -related topics for a limit of two minutes. Jennifer Bertolini, AEA, gave instructions. 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. FY21 Audit and Year End Schedule Di Oro 12, lee FITZ679WILej• - ,. 813 West Northern Lights Boulevard, Anchorage, Alaska 99503 T 907.771.3000 Toll Free 888.300.8534 F 907.771.3044 Chair Pruhs introduced Curtis Thayer, AEA Executive Director, to present on the FY21 Audit and Year -End Schedule. Mr. Thayer discussed that the provided year-end audit schedule outlined is for informational purposes and will be presented on time to the Budget Subcommittee on September 21st. B. FY23 Budget Timeline / Estimated Dates Mr. Thayer reported that the provided FY23 Budget Timeline and Estimated Dates reviews the State's budget process and will be given to the OMB or the Governor's Office. The current timeline is in draft format. The information is confidential and deliberative and will be provided to the Board in Executive Session as the budget is being developed. The dates are subject to change by the OMB or the Governor's Office. Staff will have the opportunity to meet with the OMB in September and with the Governor to answer questions, if necessary. Mr. Fogle asked when the Budget and Audit Subcommittee (BAS) is first expected to review the FY23 budget. Mr. Thayer noted the BAS does not normally review the budget. The Board is kept informed as to the process and when the milestones on the timeline are reached. Mr. Fogle informed that last year, the BAS reviewed the initial budget before it was presented to the OMB. He requested to have the same opportunity this year. Mr. Thayer agreed that the same steps that were followed last year will be followed this year. 7. OLD BUSINESS A. Railbelt Electric Utilities Reported Asset Values 2019-2020 Mr. Thayer discussed that a White Paper on the utilities' debt and rate -making was provided at the previous meeting. The information has been updated and is included in the report. The 2019 reported asset values are also included as a reference. The merger of Chugach Electric Association (CEA) and Municipal Light & Power (ML&P) has been completed. The long-term debt of the utilities is shown on page 23 and indicates the percentage change from 2019 to 2020. Chair Pruhs asked if the $300 million premium CEA paid in the purchase of ML&P is included in the asset value of $1.9 billion. Mr. Thayer does not believe that the premium paid is included in the total asset value number. He noted that he will get confirmation and report back. Mr. Thayer informed that the Regulatory Commission of Alaska (RCA) conducted regulatory proceedings and evaluations for nearly a year by before the acquisition was approved. Ms. Moller commented that the long-term debt per MWh sold for the utilities spans quite a range of amounts. She requested Mr. Thayer discuss how AEA views the information. Mr. Thayer noted that the data to AEA is for informational purposes. The RCA governs the utilities and AEA has no statutory and no regulatory authority to approve any of the data. AEA can review the information and can provide comments. Alaska Energy Authority Page 2 of 12 Ms. MacKinnon informed that Mr. Thayer has indicated at multiple Board meetings that the utilities can earn interest on their debt, which affects the asset value and the debt ratio. She asked if this is an appropriate time to request Mr. Thayer provide an update on the RCA inquiry and further understanding of the formulaic issue of the utilities' ability to make money on their debt. Mr. Thayer explained that conversations occurred with the utilities and with the RCA, and all expressed appreciation to AEA for their interest. The processes by the utilities follow State statutes and regulations and have been approved by the RCA. Ms. MacKinnon noted that she appreciates that RCA and the utilities expressed appreciation for AEA's interest. She does not believe Mr. Thayer's response answers what she understands as the Board's inquiry regarding rate payers unknowingly carrying the cost of utilities' generating money off of their borrowing. Ms. MacKinnon suggested that if the RCA and the utilities are not interested in additional conversation, then it is possible AEA can raise the discovery to the legislative delegation. She understands the process has been allowable for years. This is the first time that she is aware that the Board has discussed this process in detail. Ms. MacKinnon expressed that one of AEA's responsibilities within its mission is to seek to lower the cost of energy in the state. She would like to continue the discussion with the Governor's Office to acknowledge the procedure and to discuss if the process of allowing profit on debt is still the best way forward. Mr. Thayer informed that this utility rate -making process is used in all 50 states. The statute contains the language indicating the co-ops are regulated and are owned and governed by the members. If the utilities are to assume debt that has been approved by their members, the RCA is to accept the debt. In Alaska, all of the railbelt utilities, except for Seward Electric, is a member -owned co-op. Ms. MacKinnon expressed respect and confidence in Mr. Thayer's ability to understand all perspectives of this issue. She expressed great respect for the RCA and for the utilities that need to conduct a profitable business. Ms. MacKinnon discussed that energy costs and pricing in Alaska are much higher than everywhere else in the nation, which provides the possibility of discussions regarding conducting business in ways outside of the norm in order to reduce costs to rate payers. She is supportive of having conversations to understand the perspective of the utilities and to advocate on behalf of the rate payer, which is part of AEA's mission. Ms. MacKinnon understands that there are vested interests in different positions and she does not want to cause upset. She explained that her electric bill does not indicate that the service provider is making money on the debt service payment to which the rate payer is contributing. Ms. MacKinnon believes the conversation is important to ensure that it is agreed that this is the practice everyone wants to continue. Chair Pruhs commented that the Southcentral Anchorage area's debt load increased 15% since last year. He asked if that debt is now on the utility bills. Vice -Chair Karl agreed. Chair Pruhs commented that the 15% increased debt also has a mark-up on top of that number. He noted that additional discussion could occur regarding where some of the money went, Alaska Energy Authority Page 3 of 12 including to Providence Hospital. Chair Pruhs expressed his concern that there is no incentive for utilities to reduce debt. He believes the practice is a very bad business model. Vice -Chair Karl commented that it seems the utilities are in a gifted position. The RCA is doing their job to regulate. He noted that at the utility annual meetings he has attended, the utilities do not discuss that their debt load is a profit center. The information is not explained to the rate payer. Vice -Chair Karl discussed that if the rate payer was better informed, this process may not be acceptable. He believes AEA needs to ensure that rate payers are better informed. Vice -Chair Karl understands the acquisition of MUP by CEA was approved by the RCA, and believes that the $300 million premium paid was excessive. Mr. Thayer informed that MUP customers are receiving a negotiated rebate on their bills for five years due to the premium paid. Chair Pruhs commented that he does not believe that the public in the railbelt realizes that the debt load per person is $5,000. Vice -Chair Karl agreed. Chair Pruhs believes the conversation should at least be discussed for the public to understand. He suggested AEA should acknowledge the fact that the business model is not conducive to lowering debt. He is not indicating one way or the other on whether this model is right or wrong. Chair Pruhs discussed that he does not see how the cost of energy can be reduced under this business model. The model is problematic by limiting consolidation efficiencies and creating silos. Chair Pruhs does not know of a better model to use, and believes the public has a right to know. Mr. Kendig suggested that AEA request that the individual utilities explain their business model, rather than asking the RCA to explain the model. Mr. Kendig discussed that the model is advantageous because of the way it balances spending money and saving money. He believes that explanations from the utilities to AEA would provide the necessary information to address and satisfy any concerns of the Board. Ms. MacKinnon commended Mr. Thayer and his team for bringing the utilities together regarding significant issues during the past year. She requested that a representative from one of the utilities attend the next Board meeting to explain their business model perspective and to provide an opportunity for the Board to ask questions before the issue is elevated further with the Administration. Ms. Sande expressed appreciation to Chair Pruhs for initially raising the issue and to Mr. Thayer and his team for creating the White Paper. She understands that the Board directed Mr. Thayer to provide RCA's response, which he did. Ms. Sande agreed that it is AEA's obligation to notify and educate the rate payer. She requested additional feedback regarding AEA's role in providing more information to the rate payer. She agreed to the suggestion for a utility representative to give a presentation at a Board meeting. Alaska Energy Authority Page 4 of 12 Chair Pruhs believes it is prudent to hear from utility representatives regarding the rationale for their business model. Mr. Fogle agreed with previous comments. He requested that Mr. Thayer include the rate per KWh for each utility per year next to the long-term debt column for 2020 and 2019. This will provide a way to track the rates moving forward. Mr. Fogle commented that his understanding was that the merger between CEA and MUP was not anticipated to affect rates. The tracking of rates will show the actual happenings. Mr. Thayer agreed. He noted that rates include residential, commercial, and industrial identifications. Ms. Moller expressed her belief that this is one of the most important things the AEA Board can accomplish because of the mission to reduce the cost of energy. It is essential to track the rate metrics in order to manage the energy in the state and to understand if goals are being achieved. She agreed that it is helpful to engage in a dialog with the utilities. Ms. Moller encouraged the Board to be aware of what actions are being taken to reduce the cost of energy for all Alaskans. Chair Pruhs recommended that the Board and staff create a review process to be implemented during project consideration that determines whether or not the event will lower the price of energy. The process should also outline the appropriate next steps depending on the results. Ms. Sande requested additional explanation and conversation with the utilities regarding the practice of borrowing monies at 3% and charging the rate payers 8% on the borrowed monies. Chair Pruhs discussed that the outside plant, including the power lines, has a functional useful life before it has to be replaced. The replacement seems to be purchased utilizing debt. He believes it is important to understand how the consumer benefits from this model. AEA's concern is for the rate payer and ensuring they are well -represented in reducing the cost of energy. Mr. Fogle agreed, and believes a great learning lesson for the Board is the upgrade of the SQ Line and how that will lower rates for the rate payer. Chair Pruhs requested Mr. Thayer facilitate presentations at the next meeting by representatives from CEA and Golden Valley Electric Association (GVEA) regarding how their debt relates to their business model and planning. Mr. Thayer agreed to have a subject matter expert come before the Board. He reiterated that AEA has no regulatory authority regarding any of the utilities or co-ops. Chair Pruhs expressed understanding. Ms. Sande asked Mr. Thayer if he has provided the Board a report containing a cost comparison of the residential rates in the community, Mr. Thayer agreed the information has been provided in the past. He stated that an updated version can be given to the Board. Alaska Energy Authority Page 5 of 12 Ms. Sande thanked Mr. Thayer, and noted the information provides a better understanding regarding KWh costs in different communities. 8. EXECUTIVE SESSION - NONE 9. DIRECTOR COMMENTS Mr. Thayer commented on an issue that is not included on the agenda with respect to the stalemate with the State's budget. The Administration has laid out an internal plan regarding a roll -out if there is a closure of State government and how operations will or will not continue. Mr. Thayer noted one area of particular concern is the Power Cost Equalization (PCE), which needs a 2/3 vote to have a reverse sweep. The money from the PCE is swept into the constitutional budget reserve and then the Legislature will reverse sweep it back into its PCE endowment fund. Mr. Thayer indicated that it does not look like there will be a resolution for the reverse sweep to occur by July 1st, 2021. Mr. Thayer noted that he has been told that the Legislature will review the situation in August during a special session, which will cause concern in rural Alaska. The payment into PCE is approximately $2 million a month. Staff will continue to process PCE, given that the government is not shut down, but the actual payments will not be made until the funds are swept. Staff has implemented a notification plan during this delayed period. Mr. Thayer will provide Board members with the developing outline and communication strategy by Friday. Chair Pruhs requested Mr. Thayer discuss the letter received from King Cove. Mr. Thayer explained the issue with King Cove has been ongoing for a long time. They have received four to five million dollars of grant money from AEA to convert to renewable energy approximately 20 years ago. King Cove fell below the statutory PCE threshold amount and they do not receive PCE. Mr. Thayer noted that Senator Hoffman has been fully aware of the issue for the last several years. Staff has approached the Department of Law to discuss the possibility of administrative solutions, but the issues have to be addressed by the Legislature with statutory solutions. There has not been the political appetite by the Legislature to focus on the issues, primarily because PCE would be fully opened. Vice -Chair Karl asked if Mr. Thayer has personally discussed these issues with Senator Hoffman directly. Mr. Thayer agreed that he has previously discussed the issues with Senator Hoffman, but not during this year. Chair Pruhs requested that staff respond to King Cove and to copy Senator Hoffman, the House member, and the Governor's Office. Chair Pruhs requested to be provided with a holistic view of the initial capital cost, including a time value of money calculation showing the benefits that outweigh any PCE dollars that would have been received by the community. Alaska Energy Authority Page 6 of 12 Ms. Moller reminded members that PCE only applies to residential uses. Whereas, when the State invests in infrastructure, the application is for every rate payer. Mr. Thayer indicated that staff has been working with King Cove on this issue for several years and this is the first time that it has been raised specifically with the Board. Mr. Thayer stated that staff will provide all the pertinent information to the Board. Chair Pruhs commented that the regulations should not disincentivize communities from converting to renewable energy. Vice -Chair Karl requested that staff create a graphic that can be shared with other communities showing the long-term benefits of renewable energy for community economic development. Ms. MacKinnon interjected that the Renewable Energy Fund Advisory Committee does an excellent job in looking at the cost of KWh on all the project applications. She agreed with previous comments complimenting Senator Hoffman. She noted that other legislative priorities may have taken his attention away from the ability to advance these issues. The State has been drawing down the reserves and the Legislature has been divided on issues trying to meet the needs of all parties. Ms. MacKinnon emphasized that Senator Hoffman does everything he can to protect and advocate for his community, and there may be other specifics regarding King Cove that requiree additional time of which the Board is unaware. Mr. Thayer conveyed that his discussions about two years ago with Senator Hoffman included conducting a Blue Ribbon Task Force on PCE to confer with all the interested parties to review the process. Ms. MacKinnon commented that Mr. Thayer discussed a possible State government shut- down and a plan. She asked who would be declared emergency personnel in AEA to maintain the organization through a government shut -down. No response was provided. Ms. MacKinnon articulated her hope that the Executive Director would be part of the essential service team if the Legislature is unable to act. She expressed optimism that the Legislature has the entire week to work together for the people of Alaska. A. Denali Commission Awards Mr. Thayer announced the Denali Commission has named a new Federal Co -Chair Garrett Boyle. He was Deputy Chief of Staff for Senator Lisa Murkowski. Work will continue on the grants once he has fully assumed the role. Ms. Moller noted that there were two Denali Commission award grants for Power Plant Operator Training and 0&M Manual Conversion. She asked if State match was provided for these critical projects for operation and maintenance. Mr. Thayer explained that the information in the table represents only the Denali Commission Awards and does not include the State match that was provided. Staff is near completion of a 3-D modeling project evaluation of each of the 184 power houses. Staff has linked the manuals of the current generation in order to better assist during training sessions. The same modeling project is now occurring for bulk fuel locations to assist in their training. Alaska Energy Authority Page 7 of 12 B. Electric Vehicle Update Mr. Thayer highlighted there were 24 applications for the electric vehicle (EV) corridor. There was a protest, and Mr. Thayer directed the issue to the administrative law judge in the Department of Administration. There was a request for a stay during the course of the proceedings. The judge had a hearing, and thanks to work of staff, the stay was not enacted and the award proceeded to nine applicants. The press release was created announcing the nine applicants who won the grants by community and location. Mr. Thayer noted that there were no applications from locations north of Nenana. The plan is to go back out with a separate and targeted request for proposal (RFP) for the area of Nenana and Fairbanks. The funds are still available for interested parties. The current awards include the area from Homer to Seward to Healy. Chair Pruhs asked about Tok, Alaska. Mr. Thayer discussed that Tok is outside the road system and Tok is disqualified because they are not within the RFP corridor. Mr. Thayer informed that the next phase could include a targeted RFP for Tok, Glennallen, and Delta Junction for a charging corridor. Mr. Thayer advised that staff engaged with several parties to create a concept paper for the Transportation Electrification Deployment Demonstration in Alaska project, which was submitted to Department of Energy (DOE). Staff received notification from DOE recommending the development of a full application to be submitted in July for the grant amount of $8.1 million. Application awards will be announced in October. C. Rural Update Mr. Thayer discussed the Rural Update and noted that the Inventory and Assessment project is approximately 89% complete. The Denali Commission funding update is included on the handout. D. Power Project Fund Dashboard and Loan Report Mr. Thayer informed that at the time the report was written, there were three delinquencies. As of today's meeting date, there are zero delinquencies. The Baxter Senior Living has paid off their note and has sold the facility. E. Railbelt Owned Assets Update Mr. Thayer noted the Railbelt Owned Assets Update will be included in every Board packet and is an update on the Alaska Intertie, Bradley Lake, and the Electric Reliability Organization (ERO). He revised the information and noted that the insurance premium on Bradley Lake almost doubled in cost, increasing approximately $600,000. The cost is paid by the utilities and is not paid by AEA. The higher rates are driven by recent earthquakes and other factors. Alaska Energy Authority Page 8 of 12 Vice -Chair Karl inquired if other carriers have been researched that may provide a better rate. Mr. Thayer noted that staff is working with the railbelt utilities and other providers are being considered. The rates were received last week and are due at the end of the month. Chair Pruhs asked for the cost of the overall insurance on Bradley Lake. Mr. Thayer indicated the new policy costs approximately $1.3 million, which is up from the previous policy cost of approximately $740,000. Chair Pruhs inquired as to the value of Bradley Lake assets for insurance purposes. Mr. Thayer informed that he does not have the value of the asset with him today and will provide that number to members. Vice -Chair Karl suggested that the utilities self -insure and take the premiums that they would have paid and place the funds into a managed invested account. Chair Pruhs commented that if a catastrophic failure occurred, the government may provide a low interest loan to replace the asset. Mr. Thayer reviewed that State regulations for insurance have to be followed for the State asset. Staff is working with the Division of Risk Management to determine if there is a better rate or if there is a better process going forward. Mr. Kendig agreed that the self-insurance option should be reviewed, rather than paying an insurance company. Mr. Thayer discussed that the current structure is formatted such that the utilities are paying for the insurance and will be resolved by the next meeting. Vice -Chair Karl commented that the rate payers are paying for the insurance. Chair Pruhs inquired as to the remaining functional life of the northern Intertie. Mr. Thayer indicated that there are 30-plus years of functional life remaining. The asset has been in place for approximately 30 years. Chair Pruhs asked for the replacement cost of the 60-year asset. Kirk Warren, AEA Director of Engineering and Energy Development, informed that the full replacement cost for the line would be approximately $200 million, at about $1.2 million per mile. Upgrades to specifically replace the conductors would cost less than $200 million. Chair Pruhs requested that within the next quarter to six months, Mr. Warren present a capital improvement replacement project plan for the Intertie that outlines possible phased steps at 10 years,15 years, and ongoing. Chair Pruhs reiterated the importance of knowing what has to be spent on this asset in order to extend its life and to keep the asset totally functional for the benefit of Alaska residents. He noted that there are no reserve dollars for replacement. Mr. Warren agreed and reported that the Intertie's 0&M Committee creates 5- year preventative maintenance plans for replacements. All capital improvement plans will reside with the ERO and will be regulated to some extent by the RCA. Chair Pruhs requested that capital improvement plans are included in each quarterly update for each of AEA's assets. Alaska Energy Authority Page 9 of 12 Mr. Thayer reminded the Board that the line is owned by GVEA at Healy going north. All of the work on the line from Bradley is conducted with the utility partners to ensure the upgrades are consistent. Chair Pruhs noted that increased capacity is a separate subject matter. The requested replacement plans should focus on extending the life and functionality of AEA's assets over a phased period of time. Mr. Thayer agreed to work on the request. F. Legislative Update Mr. Thayer reported that staff recently gave a presentation to the judiciary Committee on the Governor's constitutional amendment. He noted for the record that the budget that is tentatively pending before the Legislature includes full funding of the $847,000 from UGF. The Legislature approved the $21 million acceptance of the Federal Receipt Authority for Alaska Cold Storage, $5 million for alternative energy and energy efficiency programs, $13 million for bulk fuel upgrades, and $200,000 for electrical emergencies. The capital budget before the Legislature last year received $5 million. This year, it is $56 million. The outstanding question remains regarding PCE and the 2/3 vote needed. G. AIDEA / AEA Org Chart Mr. Thayer noted that the included organizational chart remains unchanged from the previous version last quarter. Ms. Moller asked if the vacancies reflected on the organizational chart is due to the difficulty in hiring that many other Alaska businesses are currently experiencing. Mr. Thayer agreed. He commented that instances have occurred where applicants have scheduled interviews and then have not appeared for the interview. He believes this is caused by people fulfilling the unemployment requirement of scheduling interviews. Mr. Thayer noted that a new administrative assistant will be starting soon. Interviews are occurring for the PCE technician and the rural electric utility worker. Mr. Thayer informed that the previous rural electric utility worker left the position after three months because an offer from the private sector which doubled his salary. Chair Pruhs asked if the State Administration acknowledges the issue regarding salary ranges for PCN levels. Mr. Thayer explained that AEA and AIDEA is able to pay a little bit more outside of the salary ranges. He noted the ongoing challenge that State employment suffers when the economy is doing well, and reverses when the economy retracts, as people seek State benefits. Ms. Sande commented that she believes the retirement and benefit system through Tier IV did not help recruitment for State of Alaska employees and has made it more challenging for State agencies to recruit qualified candidates. Ms. Sande discussed the time-consuming State agency requirement of completing class studies before an increase in salary can occur. Alaska Energy Authority Page 10 of 12 H. Community Outreach Engagement Mr. Thayer discussed the Community Outreach Engagement plan developed by staff. The next event will occur on June 28th for the Anchorage Chamber. Please contact Mr. Thayer if members would like to attend, as tables seating four attendees need to be reserved and purchased. Additional summer events include Kenai and Soldotna Chambers, Palmer Chamber, Dimond Center Electric Vehicle Car Show and Ride and Drive Event, Chena Hot Springs Renewable Energy Fair, and Old Harbor Road Project Ribbon Cutting in Kodiak. Mr. Fogle expressed appreciation for the outreach schedule. He inquired regarding the status of the requested full communications plan for AEA and AIDEA. Mr. Thayer noted that his understanding is staff had satisfied the full communication plan last year when the presentation was given that included the basis of the outreach schedule, the inclusions on Facebook, the website reorganization, and the library upgrade. Staff has not deviated from that outlined plan. Mr. Fogle noted that the Board provided staff with feedback and Colleen Unidentified was expected to provide an update. Mr. Thayer indicated that he is unaware of AIDEA's staffing information. Mr. Fogle believes a full communication plan should be created for both AEA and AIDEA. He emphasized the importance of being proactive. Mr. Thayer suggested that a discussion occur offline regarding what Mr. Fogle believes staff is not doing. Mr. Thayer feels that $56 million in legislative appropriations reflects an effective outreach plan. Mr. Fogle agreed and wants to ensure the public is aware of the success. He feels that additional outreach beyond Facebook and Chambers of Commerce could occur, especially now that Covid-19 restrictions are loosening. Mr. Thayer discussed that AEA averages 10 to 15 hits every couple of months in the newspapers regarding the work that is being completed. Chair Pruhs agreed that the conversation should continue to be discussed offline. Ms. Sande expressed appreciation to Mr. Thayer for the outreach that has been conducted, especially during Covid-19. She thanked him for including the articles of interest in the Board packet. Articles of Interest - Included in packet. J. Next Regularly Scheduled AEA Board Meeting Wed. August 4, 2021 Mr. Thayer advised that the next scheduled AEA Board meeting has been changed to Wednesday, July 28th, updated from August 4th. 10. BOARD COMMENTS Vice -Chair Karl expressed appreciation to Mr. Thayer and his team for their good work in providing the information. Alaska Energy Authority Page 11 of 12 Ms. Sande expressed appreciation for the helpful discussion regarding the utility debt service. She believes that reducing the debt and reducing the cost of energy would have significant benefits to Alaskans. Ms. Sande agreed with previous Board members' comments that the reduction of the cost of energy is AEA's mission. She understands that AEA does not have regulatory authority, and believes it is AEA's responsibility to continue the conversation with the subject -matter experts who will come before the Board. Ms. Moller thanked Mr. Thayer and his staff on behalf of Commissioner Anderson for their efforts in working with all of the entities throughout the state. Chair Pruhs expressed appreciation to staff for the efficient meeting. 11. ADJOURNMENT There being no further business of the Board, the AEA meeting adjourned at 9:46 am. za_-_ Curtis Thayer, Executive Director / Secretary Alaska Energy Authority ,E;RGY.gUT co �'PoRgTto SEAL Alaska Energy Authority Page 12 of 12