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HomeMy WebLinkAboutAEA Board Meeting Dec 2021Alaska Energy Authority BOARD MEETING MINUTES Wednesday, December 1, 2021 Anchorage, Alaska 1. CALL TO ORDER ,, ALASKA ENERGY AUTHORITY Chair Pruhs called the meeting of the Alaska Energy Authority to order on December 1, 2021, at 3:12 pm. A quorum was established. 2. ROLL CALL BOARD MEMBERS Members present: Chair Dana Pruhs (Public Member); Vice -Chair Julie Sande (Public Member); Sandra Moller (Alternate for Commissioner DCCED); Anna MacKinnon (SOA-DOR); Albert Fogle (Public Member); and Bill Vivlamore (Public Member). 3. AGENDA APPROVAL MOTION: A motion was made by Mr. Fogle to approve the agenda. Motion seconded by Vice -Chair Sande. The motion to approve the agenda passed without objection. 4. PRIOR MINUTES - October 27, 2021 MOTION: A motion was made by Mr. Fogle to approve the prior minutes of October 27, 2021, as presented. Motion seconded by Ms. MacKinnon. The motion to approve the minutes of the October 27, 2021, minutes passed without objection. 5. 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 — None. 7. OLD BUSINESS A. AEA Financial Statement — FY2021 (Final) and AEA Federal Single Audit — FY2021 (Final) • • IN �. �. 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, present the information. Mr. Thayer advised that the audits were reported on and approved by the Board at the last meeting. These finalized statements have not been changed since approved. The audits are also available online for the public's review. There were no questions or comments. B. Bradley Lake Required Project Work Mr. Thayer gave the update regarding ongoing Bradley Lake required project work. He discussed the attached Memorandum from Kirk Warren, Director, Engineering & Energy Development, regarding the review and confirmation by the Department of Law (DOL) of required project work, specifically the upgrade of the Sterling to Quartz Creek (SSQ) line segment. The Bradley Lake Project Management Committee (BPMC) is expected to authorize the expenditures for the upgrade during their December 10th, 2021, meeting. Mr. Thayer explained that the required project work requests reviewed by the DOL are anticipated to cost more than $250 million. He explained that there is approximately $225 million worth of bonding capacity. The upgrade work on the SSQ line specifically will save the rate payers over $500,000 a year in line loss. He noted that additional details will be discussed during executive session. Chair Pruhs asked for clarification that $66 million of work on the SSQ line will save the rate payers $500,000 a year. Mr. Thayer agreed and emphasized that example is only one of the many benefits that will be realized from the required project work. There were no additional questions. C. Electric Utility Relief Program Update Mr. Thayer explained that the Department of Commerce requested that AEA administer the Electric Utility Relief Program. The program period closed on November 22, 2021. The available amount of funding was $6.8 million. There were 200 qualified utilities that received letters regarding the program. There were 39 applicants who responded. The total unaudited amount of program funding requested was $4.9 million. Mr. Thayer explained that this program is specifically for residential bad debt that is owed to utilities. He discussed that there are other COVID-19 relief programs that have also provided funding to cover amounts of residential bad debt. Mr. Thayer gave the example that the City of Seward did not apply for this program because the City of Seward owns the utility and used their COVID-19 funding to pay the residential bad debt. Mr. Thayer discussed that staff is auding the applications to ensure that no duplication of debt relief occurs. Ms. Moller expressed appreciation to Mr. Thayer and staff for administering the program. She requested additional information regarding the letter that was sent to the 200 qualified community utilities. Mr. Thayer informed that two letters and an email were sent to communities Alaska Energy Authority Page 2 of 6 regarding the program. Additional communication regarding the availability of the program included poster media and community outreach. Chair Pruhs asked for the number of people included in the Homer Electric Association (HEA) service area. Mr. Thayer noted that HEA encompasses Kenai and Soldotna. He stated that the Kenai population is approximately 80,000. The program applications differ depending on how communities managed and administered their COVID-19 relief funding. Chair Pruhs requested additional information regarding the unpaid amount submitted for McGrath Light & Power. Mr. Thayer informed that staff is reviewing the McGrath application to ensure that only residential locations are being accounted for. Chair Pruhs asked if staff anticipated that the entire program funding of $6.8 million will be utilized. Mr. Thayer discussed that the program is now closed and approximately $4.9 million was requested. Staff will discuss with the Department of Commerce as to the transference and/or return of the remaining funds. Mr. Fogle asked if this program was to relieve electric utilities of residential bad debt due to COVID-19. Mr. Thayer agreed and noted that the time period included the Governor's emergency declaration. Mr. Fogle inquired if the delinquent balances were reduced for the residents or if the utilities are still pursuing collections. Mr. Thayer noted that once an account is made whole by the program, the utilities will cease the collection process, as it is no longer bad debt. Mr. Thayer continued the discussion and noted that the intent is to have the funds disbursed by the end of the year, with the anticipated close-out report at the January Board meeting. There were no additional questions. MOTION: A motion was made by Vice -Chair Sande to enter into executive session to discuss confidential matters related to owned assets of the Authority and confidential matters related to the Budget, the immediate knowledge of which would have an adverse effect upon Alaska Energy Authority. This is supported by the Open Meetings Act, AS 44.62.310, which allows a Board to consider confidential matters in executive session. In this case, the Board believes that these are subjects which would have an adverse effect on the finances of AEA or are protected by law, due to the rules protecting personal privacy and certain business information. Motion seconded by Mr. Fogle. The motion to enter into executive session to discuss confidential matters related to owned assets of the Authority and confidential matters related to the Budget, the immediate knowledge of which would have an adverse effect upon Alaska Energy Authority passed without objection. 8. EXECUTIVE SESSION: 3:28 pm Alaska Energy Authority Page 3 of 6 To discuss confidential matters related to owned assets of the Authority and confidential matters related to the Budget, the immediate knowledge of which would have an adverse effect upon Alaska Energy Authority. The Board reconvened its regular meeting at 4:20 pm. Chair Pruhs advised that the Board did not take any formal actions on matters discussed while in executive session. 9. DIRECTOR COMMENTS A. Response to Board Questions Mr. Thayer noted that there were several questions regarding electric vehicles (EV), EV batteries and EV charging. Responses and information are included in the Board packet on those issues. B. Rural Update i. 2021 USDA High Energy Cost Grant Award Mr. Thayer discussed the Rural Programs update. AEA staff worked diligently and submitted a grant application for the USDA High Energy Cost Grants program. An award of $3 million of matching funds was provided for a rural community's $6 million project. Mr. Thayer expressed appreciation particularly to Rebecca Garrett, AEA, and Josie Hartley, AEA, for their resolute efforts during the competitive process. C. Renewable Energy Fund (REF) Round 14 Update Mr. Thayer discussed that the information in the Board packet regarding REF Round 14 is publicly available. The period will close before the next Board meeting. D. Infrastructure Investment and Jobs Act (H.R. 3684) Mr. Thayer informed that the information included in the Board packet regarding the Infrastructure Investment and Jobs Act, H.R. 3684, is staff's analysis of the Act's benefits to AEA. Staff continues to monitor the bill. E. Power Cost Equalization (PCE) update - Included in packet. F. State Energy Program (SEP) Update Mr. Thayer noted that the SEP update is included in the Board packet. He highlighted that the Infrastructure Bill contains a lump sum of $6.7 million that can be accessed with federal receipt authority. Alaska Energy Authority Page 4 of 6 G. Yd Quarter Org Chart Mr. Thayer discussed that the Yd Quarter Organizational Chart is approaching full employment. H. Community Outreach - Included in packet. I. Articles of Interest - Included in packet. J. Next Regularly Scheduled AEA Board Meeting Thursday, January 27, 2022 Mr. Thayer advised that the next scheduled AEA Board meeting is Thursday, January 27, 2022. He has received confirmation that Chugach Electric Association and Matanuska Electric Association will discuss their strategic planning, cost structure, and co-op models, as requested by the Board. Chair Pruhs suggested that the AEA meeting occur before the AIDEA meeting in order to accommodate the utilities' representatives. Mr. Fogle requested that staff provide Board members the utility pricing sheet again at the January meeting. Mr. Thayer agreed. 10. BOARD COMMENTS Mr. Fogle thanked Mr. Thayer and Alan Weitzner, AIDEA, and Dona Keppers, Chief Financial Officer, for their diligent efforts in completing the audit season and preparing the financial statements. He expressed appreciation to the staff for their work. Ms. MacKinnon echoed Mr. Fogie's sentiments and expressed her gratitude to the entire staff team and new auditors for their successful completion of the financials. She believes that AEA is conducting an outstanding public outreach schedule and the positive media response highlights staff's diligence. Ms. MacKinnon expressed appreciation for staff's overall efforts, particularly with the REF program. Ms. MacKinnon requested that Chair Pruhs schedule a strategic planning session soon to discuss the future opportunities available for AEA. She noted that if the Infrastructure Bill is supported, there will be federal dollars that could be utilized by AEA. Ms. MacKinnon believes that AEA should ensure that the funding is of the greatest value to Alaskans. Chair Pruhs agreed to scheduling a strategic planning session. He noted that there will be a grand opening this spring in Fairbanks for the partners on the Ambler Road. He suggested that the Board meetings for AEA and AIDEA occur during that time and that the strategic planning meeting occur afterwards. Alaska Energy Authority Page 5 of 6 Chair Pruhs expressed appreciation to Board members and to staff for their efforts today. 10. ADJOURNMENT There being no further business of the Board, the AEA meeting adjourned at 4:25 pm. Curtis W. Thayer, Executive Director / Secretary Alaska Energy Authority ,'RGy `'''�. QRPORgT 4 SEAL =; r97a Alaska Energy Authority Page 6 of 6