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HomeMy WebLinkAboutAEA Board Meeting Aug 2021Alaska Energy Authority BOARD MEETING MINUTES Thursday, August 12, 2021 Anchorage, Alaska 1. CALL TO ORDER AeA ALAS KA ENERGY AUTHORITY Chair Pruhs called the meeting of the Alaska Energy Authority to order on August 12, 2021 at 8:30 am. A quorum was established. 2. ROLL CALL BOARD MEMBERS Members present: Chair Dana Pruhs (Public Member); Vice -Chair Bernie Karl (Public Member); Julie Anderson (Commissioner DCCED); 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 - June 23, 2021 MOTION: A motion was made by Mr. Fogle to approve the prior minutes of June 23, 2 02 1. Motion seconded by Mr. Kendig. The motion to approve the minutes of the June 23, 2021 minutes passed without objection. 5. PUBLIC COMMENTS (2 minutes per person) Chair Pruhs advised that public comments are limited to two minutes per person. He requested that each person please state their name and affiliation, if any. Chair Pruhs noted that staff will respond to questions in writing, if contact information is provided. Dimitri Shein, Executive Director of Alaska Electric Vehicle Association (AKEVA), thanked the Board for making decisions early this year to begin using the VW funds to support the development of a fast charging network in Alaska. Mr. Shein noted that at the previous meeting, he requested that staff contact him regarding issues with the procurement of the fast charging equipment so that Alaskan electric vehicle (EV) owners could provide feedback and be involved in the process. Mr. Shein informed that staff has not made contact and the REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG 813 West Northern Lights Boulevard, Anchorage, Alaska 99503 T 907.771.3000 Toll Free 888.300.8534 F 907.771.3044 process has proceeded with no involvement from the EV owners that will be using this network to charge their vehicles. Mr. Shein discussed the four resulting issues. The first issue pertains to major holes in the route. The current fast charging sites do not include the towns of Wasilla and Girdwood, which are major commuting and recreation towns with year-round economies. He believes these towns should have been prioritized for fast charger installations above others selected. He explained that spacing the charging stations 100 miles apart is meaningless if the charging station is 50 miles out of the way from the major town center. Mr. Shein discussed the second issue is the lack of coordination with partners. He noted that Cantwell has a population of 178 and already has a fast charger built by the Alaskan small business Recharge Alaska. Yet AEA is spending $100,000 to install a second fast charger in Cantwell, which will directly compete with this small Alaskan business. He believes the money could have gone to Wasilla, which does not have a charger. Mr. Shein reviewed the third issue is that the procurement process was wasteful and rewarded overpriced sites. Out of 10 sites selected, only one requested less than $110,000 of the maximum grant amount. Recharge Alaska installed a fast charger in Cantwell for under $50,000, and the national average to install a fast charger is less than $75,000. Mr. Shein explained the fourth issue is the lack of technical knowledge. He noted that for the entire Kenai Peninsula and route south of Anchorage, AEA selected battery run chargers that can only fast charge three electric vehicles every eight hours before the charger reduces to a trickle charge. AEA elected to send money to California to purchase the most expensive fair- weather charger meant for specialty applications only, rather than selecting applicants along the route who offered to invest the grant funds locally to improve their utility and electrical infrastructure to provide continuous reliable high -power charging. Mr. Shein explained that every site on the Kenai Peninsula is exuberantly expensive. No money was spent on infrastructure, which means there is no ability for cost-effective expansion. He stated that there are still no fast chargers in Alaska installed by AEA. Chair Pruhs thanked Mr. Shein for his comments and requested that he submit his comments in writing to Curtis Thayer, AEA Executive Director. Mr. Shein agreed. Chair Pruhs requested that Mr. Thayer respond accordingly to Mr. Shein's comments and to work with the AKEVA. Peggy Mullen noted that she is the owner of River City Books in Soldotna. She expressed that she is a disappointed applicant for the VW settlement fast chargers and wanted to bring information to the Board's attention regarding the award in Soldotna to Custom Seafoods, David Shanks. She explained that there were two local applicants that flew under the radar during the application process and were not required to register their intent. One applicant chose the direct political route and opted to work with Clark Penney, the grandson of Bob Penney, who was a major funder of the governor's campaign, and with the governor's brother who is a wealthy Texas businessman. The recipient of the fast charger award was Custom Seafoods, which is owned by a wealthy Texas businessman. Alaska Energy Authority Page 2 of 14 Ms. Mullen discussed that the original criteria that applicants received did not include a "voluntary match" component in the scoring matrix. She noted that she has attached the scoring matrix to her comments for the Board's review. The "voluntary match" component appeared later in Addendum #1 on April 16. Ms. Mullen noted that their River City Books' application failed to list anything under that category, as they considered the $27,000 cost over the proposed $100,000 award to be voluntary. The category was not clearly defined in the included definitions page and was not one that they understood enough or desired to manipulate to their advantage. Ms. Mullen explained that major reductions in cost by FreeWire for Custom Seafoods added 40 points for their application. Without that category, Ms. Mullen discussed that River City Books would have scored highest. She stated that FreeWire offers a big battery to boost two- phase power in order to offer a fast charge. River City Books chose to spend over $42,000 to have HEA bore three-phase power under their street to an actual 50 kW charger from ChargePoint. Ms. Mullen reviewed an additional scoring criterion that strikes River City Books as odd, having scored the maximum points of 20 under "Community Support". She stated that Custom Seafoods garnered 18 points, despite the fact that they received only one letter of support from Cricket Wireless, which is partly owned by Mr. Shanks. River City Books made the effort to document support for their location and included nine letters from the Chamber of Commerce, city planner, local auto group, two dining establishments, three environmental groups, and a local doctor who uses their existing L2 charger. Ms. Mullen discussed that their central location is 465 feet from the traffic signal at the "Y" in Soldotna. Someone using their charger could walk seven minutes to Soldotna Creek Park and playground, or to Fred Meyer. If the object of this effort is to expand options for EV drivers and to reduce the fear of running out of charge, every effort should be made to offer the most accessible and amenities -rich locations as possible. Ms. Mullen noted that River City Books would like to continue to do their part for the suffering planet. They already offer a free Level 2 charger, powered in part by their 51 solar panes. Ms. Mullen noted if AEA has any remaining funds in the VW settlement, River City Books would be happy to work on a statewide crowd -sourcing effort to fund the balance. Chair Pruhs requested that Ms. Mullen return after the Board meeting is concluded to discuss her questions directly with Mr. Thayer and staff, who will provide clarifications and input. Ms. Mullen agreed. Ms. MacKinnon asked Mr. Thayer for additional information as to the scoring of the procurement process and to explain if the scoring members are influenced by personal affiliations or the political process. She requested that Mr. Thayer clarify on the record for the public that AEA's process does not include looking at campaign donors. Mr. Thayer explained that the evaluation committee consisted of five AEA employees, including the Director of Planning, and two employees that have an Alaska EV background. Mr. Thayer Alaska Energy Authority Page 3 of 14 noted that Mr. Penney's application ranked four out of four at 283 points. The number one ranking was Northern Outdoor Custom Seafoods at 376 points. The second ranking was Three Bears Alaska at 373, and the third ranking was River City Books at 353. Ms. MacKinnon expressed assurance to the public that political contributions are not considered during any scoring of procurement processes at AEA. Ken Castner, Homer, expressed his chagrin regarding the process AEA is undergoing that does not involve stakeholders and that does not involve the stakeholders in the evaluation of the applications. He believes this does not provide a realistic evaluation of meeting the need or identifying future challenges. Mr. Castner noted that there is an executive session scheduled on the agenda to presumably address Resolution No. 2021-03. He disagrees that there are any matters related to Authority -owned assets that could have an adverse effect upon AEA. Mr. Castner believes the public deserves to be able to observe the discussion, especially regarding the assets that are owned by the State. Mr. Castner discussed that AEA is not an independent client nor is a separate corporation of AIDEA. AEA belongs to the State and is staffed by State employees working out of State offices. Mr. Castner believes that the Open Meetings Act is to ensure that the public sees the decision - making process. He thinks the secrecy of the executive session demeans the State's ability to show the active management process. Mr. Castner believes AEA needs more work on the process. There being no other members of the public online or in -person wishing to make a public comment, Chair Pruhs closed the public comment period. MOTION: A motion was made by Mr. Kendig to enter into Executive Session to discuss confidential matters related to owned assets of the Authority, the immediate knowledge of which would have an adverse effect on Alaska Energy Authority. This is supported by the Open Meetings Act, which allows a board to consider confidential matters in executive session. In this case, the Board believes that these subjects, which would have an adverse effect upon the finances of AEA, are protected by law, due to rules protecting personal privacy and certain business information. Motion seconded by Mr. Fogle. The motion was approved without objection. 6. EXECUTIVE SESSION 8:50 am To discuss confidential matters related to owned assets of the Authority the immediate knowledge of which would have an adverse effect upon Alaska Energy Authority. The Board reconvened its regular meeting at 9:31 am. Chair Pruhs advised that the Board did not take any formal action on matters discussed while in executive session. Alaska Energy Authority Page 4 of 14 7. NEW BUSINESS A. Resolution No. 2021-03 AEA Resolution of the Alaska Energy Authority to investigate and Develop a Strategic Plan for Railbelt Assets and supporting MEMO Chair Pruhs requested Mr. Thayer present on Resolution No. 2021-03. Mr. Thayer explained that the purpose of the resolution is to allow AEA to investigate and develop a strategic plan for Railbelt assets. He informed that the cooperative work with the Railbelt utilities has begun to address successful efforts associated with these main areas: • Transmission upgrades addressing capacity, reliability and redundancy • Asset ownership options that meet the long-term needs of the interconnected Bulk Electric System (BES) • The introduction of additional renewable energy options to the Railbelt Mr. Thayer believes it is best that an overarching plan is developed and presented to the Board for final approval. Chair Pruhs inquired if there are public work sessions planned to provide an opportunity for public input on the recommendations staff provides. Mr. Thayer explained that the communications plan fully envelops all of the stakeholders on the Railbelt. Chair Pruhs requested that AEA conducts public meetings within communities that will be affected by any assets that may be added or divested by AEA. Mr. Thayer agreed that is the intention of the resolution. Mr. Thayer informed that the line needs many upgrades and this resolution will assist in determining how best to accomplish the necessary work. Staff will report back to the Board and to citizens as the process continues. Mr. Thayer discussed that Bradley Lake has $12 million in excess earnings this year since the bonds were paid off. These funds are available for required project work. Discussions need to occur with the utilities and with the Department of Law to determine what work is qualified as required project work and how to best implement the repairs and upgrades. Ms. MacKinnon expressed appreciation to staff for providing public access on the website to Resolution 2021-03. She noted that AEA will be engaging in a public process regarding the strategic plan development and working collaboratively with the utilities. The goal is to deliver the lowest cost energy to Alaskans. Mr. Thayer agreed. Chair Pruhs asked if anyone has a conflict regarding this resolution. Vice -Chair Karl informed that he will not be voting on the resolution because there is a possibility he will have a potential conflict of interest. MOTION: A motion was made by Mr. Fogle to approve Resolution 2021-03, AEA Resolution of the Alaska Energy Authority to investigate and develop a strategic plan for Railbelt assets and supporting memo. Motion seconded by Mr. Kendig. Alaska Energy Authority Page 5 of 14 A roll call was taken, and the motion to approve Resolution 2021-03 passed unanimously, with Vice -Chair abstaining. 8. OLD BUSINESS A. Railbelt Electric Utilities Reported Asset Values - Delayed until Oct. Board Meeting Mr. Thayer indicated that CEA and MEA will be present at the October Board meeting to discuss cooperatives, the utility debt, and the structure of the debt. 9. DIRECTOR COMMENTS Chair Pruhs noted that discussion can occur later with Mr. Thayer regarding the possibility of transferring some of the items under Director Comments from every meeting to a quarterly update. Mr. Thayer agreed. Mr. Thayer advised that one important item that is not listed on the agenda is the occurrence that AEA secured $65 million from State budget funding. The appropriations to AEA are: • $780,000 for AEA Owned Facilities • $5.5 million for AEA Rural Energy Assistance • $2.2 million for AEA Statewide Project Development, Alternative Energy and Efficiency • $5 million for AEA Alternative Energy and Energy Efficiency Programs $13 million for AEA Bulk Fuel Upgrades • $17.5 million for AEA Rural Power Systems Upgrades • $200,000 for AEA Electrical Emergencies Program • $21 million for AEA Federal receipt authority for BUILD grant at the airport Mr. Thayer discussed that this year was a very successful funding year. He noted that there was no funding for the last four years for bulk fuel upgrades. Mr. Thayer informed that there is $4.6 million pending through the Renewable Energy Fund that will be addressed by the Legislature in January. A. Response to Board Questions Mr. Thayer discussed the responses to Board questions that are included in the Board's packet. The attachment provided lists the utilities' rate per kilowatt hour for both residential and commercial customers. He noted that the question regarding the premium of Chugach's purchase of ML&P and the amortization of the premium is outstanding. The issue is complex and more information is needed. The hope is to bring forward an answer at the next meeting. Mr. Thayer informed that MEA and CEA will attend the October Board meeting. Alaska Energy Authority Page 6 of 14 Mr. Thayer discussed that the request to provide a capital improvement and project plan for assets in the next quarter to six months is designated as a work in progress. The draft Communications Plan will be provided to Board members at the end of today's meeting. The information was not available when the Board packet was being assembled. B Railbelt Owned Assets Update Mr. Thayer reviewed the Railbelt Owned Assets Update included in the packet. AEA is the Secretary/Treasurer for the Alaska Intertie Management Committee (IMC). Officers were elected at the recent meeting and reports were given on the potential extension at Lorraine Lake to Reddington and the vegetation management plan. Mr. Thayer reviewed that the Bradley Lake work on SSQ Line Corridor Access Plan and the 69kV line removal is scheduled to begin this fall. Some of the lines are currently down, but none of those lines are energized. The insurance premiums for Bradley Lake have increased 55% from last year. ARECA presented to the Bradley Lake Management Committee (BPMC) regarding the increase. The utilities share in the cost of the insurance and agreed to pay for the increase. The Committee will review deductibles and alternative companies. Mr. Thayer noted that the market has caused the increased spike in insurance premiums. Mr. Fogle commented that discussion occurred at the previous Board meeting regarding the review of the self -insured market for Bradley Lake. He encouraged the consideration of that option. Mr. Thayer agreed and noted that discussions are also ongoing with the State of Alaska Risk Management team. Mr. Thayer reviewed that staff recently became aware of the AEA owned Shugnak to Kobuk transmission line because of an expression of interest in an ownership transfer. The line was installed approximately 40 years ago and has not been maintained. AEA staff is reviewing proposals and recommendations on the disposition of the line. Mr. Thayer noted that the hydroelectric report included in the packet summarizes the Fivemile Creek Project, the Hiilangaay Project, and the Thayer Creek Project. C. Rural Update Mr. Thayer discussed that AEA was successful in obtaining a new commitment of $500,000 last week, which is in addition to the $2.3 million in Denali Commission funding that is outside the normal funding. Mr. Thayer explained that staff was able to travel in a chartered plane to rural Alaskan communities last year to work on powerhouses. This year, due to Covid-19 safety precautions, several communities are now requiring a village council resolution that gives advanced approval of travel. This new requirement is hampering the ability for staff to travel to rural Alaska for routine maintenance and training. Alaska Energy Authority Page 7 of 14 Chair Pruhs asked if the village requirement helps or hinders staff from traveling to rural Alaska. Mr. Thayer explained that the process is cumbersome. Chair Pruhs believes that each village council should have a preapproved resolution regarding issues with power generation or bulk fuel so that the process does not have to be repeated for each issue. Mr. Thayer commented that staff wants to be respectful of the villages and their councils. It is becoming more difficult to plan the program and project activity as more rural communities are requiring council approval for travel. Chair Pruhs suggested that staff ask the councils to provide preapproval for travel to assist with issues. He believes this will lower the ultimate cost to the State. Commissioner Anderson agreed with Chair Pruhs' suggestion and believes that the villages could provide staff with their recommended protocols and this would streamline the process. Mr. Thayer noted staff is working with communities to address this new challenge. Mr. Thayer discussed the increased difficulty to attract and retain skilled labor candidates for the Circuit Rider Program. He noted that the employee who left most recently took a position that offered double the current pay of $80,000 to $160,000. Mr. Thayer explained that AEA cannot compete with that type of offer. D. Denali Commission Awards Mr. Thayer noted that the Denali Commission awards are listed by project as a rolling total. Once the two new agreements are signed, the total will be close to $20 million. Chair Pruhs asked if AEA and AIDEA have the procurement bandwidth to effectively implement the funding that has been provided by the Legislature, the Denali Commission awards, and the potential infrastructure funding from the federal government. Chair Pruhs requested that Mr. Thayer work with Alan Weitzner, Executive Director AIDEA, and procurement to facilitate the ability execute the funding that has been provided. Mr. Thayer informed that he and Mr. Weitzner have been working collectively to determine the best path forward for both organizations. There are two separate procurement codes; one for AEA and one for AIDEA. This has caused past confusion among procurement staff. The determination was made for each organization to have its own procurement services, rather than a shared service. AEA and AIDEA will each have a contracting officer and a contract administrator. The previous shared services maintained five employees and the new structure will maintain four employees. Mr. Thayer noted that AEA's Chief Procurement Officer (CPO) is Tim Sandstrom, and AIDEA's Chief Operating Officer (COO), Dave Heimke, is responsible as their CPO. Chair Pruhs commented that the reduction from five procurement employees to four employees is a red flag for him, given the increase in funding that is being received. Chair Pruhs asked Mr. Thayer if he is confident that four procurement employees is adequate to efficiently implement the influx of anticipated projects and funding. Mr. Thayer believes that once the organization is fully staffed, they will be in a good position to address the Alaska Energy Authority Page 8 of 14 anticipated projects. He noted that additional conversations with the Administration will need to be discussed that are dependent on the federal infrastructure bill. Commissioner Anderson commented that the Department is very conscious of the issue and is tracking the progress to ensure an adequate response can be provided. Chair Pruhs believes that there are staffing difficulties regarding talent and interest in all aspects of the economy and that it may take six to nine months to get the staffing in place to effectively handle the workload. He wants to ensure that the facilities and staffing are accessible to concentrate on the increased need. Chair Pruhs reiterated the importance of resolving this high level topic of discussion so that there are no issues in deploying the expected opportunities. Mr. Thayer explained that there is only one employee in procurement currently. He noted that Mr. Sandstrom has been the CPO for both agencies and now there is a CPO position for AIDEA. Mr. Thayer noted that conversations are ongoing and the Governor's Administration has reached out to ensure all procurement positions are filled and the needs are being met to plan for the anticipated activity. E. PCE Update Mr. Thayer reported that the PCE currently has a market value of $1.74 billion. The earnings for the last fiscal year were $150 million. The previous year's earnings were $48 million. Mr. Thayer explained the disposition and cascading structure of high earnings. The first cascade pays for power cost equalization. The second cascade pays for $30 million for community assistance. If there is additional funding beyond that, up to $25 million can be used for power houses or the Renewable Energy Fund or for additional capital for the bulk fuel revolving loan fund within DCCED. Mr. Thayer noted there is approximately $21 million that can be used for one of those three categories. Mr. Thayer reviewed that a similar earnings excess occurred three years ago. Chair Pruhs requested additional information on the qualifications for community assistance. Commissioner Anderson explained that community assistance is an open grant program that uses a formula to determine qualifications, including population factors for communities of up to 2,000 people. Mr. Thayer discussed that staff is working with the Department of Law on the court case. AEA continues to collect information from the villages encouraging them to apply for July, assuming that the funding issue was going to be resolved, and payments could then be issued. Communities currently have 60 to 90 days to submit their applications and AEA has 30 days to then make the payments. AEA is still making payments for May and June information that is being received from communities. Very few communities have applied for the July funding and AEA is prepared to make those payments. Alaska Energy Authority Page 9 of 14 Mr. Thayer explained that the Regulatory Commission of Alaska (RCA) needs to again inform AEA as to the PCE credit amount, now that there is'funding available. Mr. Thayer reported that RCA is in the process of issuing the administrative adjustment order. He noted the good news is that he believes there will be very little, if any, lag time experienced with the payments. Commissioner Anderson asked if a press release will be forthcoming. Mr. Thayer indicated that staff is working with the Administration on those details. F. Power Project Fund Dashboard and Loan Report Mr. Thayer informed that there has not been much activity to report. One large loan has paid off, which increased the uncommitted cash balance. There are currently three to four applications. The current interest rate for the Power Cost Fund is very attractive at 2.77%. The two delinquent accounts reported have since been cured. G. Electric Vehicle Update Mr. Thayer reviewed the included memorandum regarding the fast charging station corridor between the Kenai Peninsula and Fairbanks, which can use up to $1 million of the VW settlement funds. Nine applicants were selected out of the 24 applications received. Five employees utilized a standard procurement process to score each of the applications. A map of the nine locations was provided to members. Installations will begin this month. Mr. Thayer discussed that there was an initial delay in providing funding due to a procurement protest by some in the EV community. The issue went before the administrative law judge at hearings and the determination was made that the procurement was conducted properly. Mr. Fogle asked Mr. Thayer for clarification on what is preventing AKEVA from leveraging their own funds or getting support from external parties to construct fast chargers throughout Alaska. He asked if AKEVA has any regulatory burdens or legal issues that have to be addressed, and why they are looking to AEA to solve their problem. Mr. Thayer indicated that he cannot speak for the Association. He explained that 15% of the VW settlement was set aside for an electric vehicle charging corridor. AEA went through the process working with DOT to establish the corridor. AEA advertised and issued an RFP to bid for sites. No applications were received from Nenana, Fairbanks, or Girdwood. Mr. Thayer explained that the procurement process was rigorous and in accordance with statute. Mr. Thayer discussed that the second phase of the fast charging corridor procurement includes the locations of Tok, Glennallen, and Delta. This will utilize the remaining funding. Commissioner Anderson inquired if more chargers are needed to satisfy the additional corridor. Mr. Thayer explained that electric vehicle charges can cover 200 to 250 miles. The plan is to create a corridor within 100 miles of each station. The longest stretch would be to Glennallen. He noted that the planning work for the corridor is ongoing, but the funding is Alaska Energy Authority Page 10 of 14 being distributed. If additional federal funding becomes available, AEA will look to apply for that funding to expand the corridor. Commissioner Anderson asked who buys the power that is provided to the cars at the charging stations. Mr. Thayer noted that some locations provide the charge for free and some locations required payment for the charge. This issue was brought before the RCA to render a decision. Ms. Sande requested that Mr. Thayer discuss the public comments related to the lack of stakeholder participation. She asked for clarification on the remaining amount of EV funding. Mr. Thayer explained that 15% of the VW settlement, a little over $1 million, was set aside for the EV charging corridor. All funds have to be cleared with the Trustee of the VW settlement before they are spent. There is approximately $375,000 remaining for the EV charging corridor that is anticipated to be utilized for the Phase II RFP for Glennallen, Tok, and Delta, which were not included in the original corridor. Mr. Thayer discussed that there is an EV Working Group that meets regularly and Mr. Shein participates. An EV car show and ribbon cutting occurred at the Dimond Center last weekend to welcome the expansion of their fast charger station. Ms. Sande asked if the Working Group is discussing potential holes in services along the route, specifically in Girdwood. Mr. Thayer agreed and noted that there were no applications from Girdwood. He stated that there were also no applications from Fairbanks or Nenana. Ms. MacKinnon expressed concern about Phase II, given that the Phase I corridor is incomplete. She requested additional information on the plans to fortify the corridor between Homer and Fairbanks prior to beginning Phase II. Ms. MacKinnon reiterated the Board's discussion to ensure there were enough charging stations along the corridor to be considered a viable route. Mr. Thayer discussed that the provided Summary Table of EV Fast Charging Stations lists the successful bidders' site addresses and the distances from the adjacent charging stations. The intent was to keep the sites within 50 to 100 miles of each other. The site at Healy is an outlier at 110 miles from Fairbanks. Mr. Thayer noted that a fast charging station is not necessarily required in Nenana. Mr. Thayer explained that the money that was set aside for the fast charging corridor was disbursed based upon the number of applicants to maximize their ability. Outreach was conducted to Alyeska Hotel and to the Speedy Gas Station to verify that they did not choose to apply. The Cooper Landing location is 95 miles from Anchorage. Mr. Thayer discussed that the funding set aside for the Phase II communities could be used for the Phase I corridor, but it would leave the Phase II communities without any opportunity for charging station infrastructure. Ms. MacKinnon noted that it was asserted that staff chose a higher cost product with less ability to place charging stations more frequently because of the chosen hardware. She requested additional information regarding the differences between trickle charge and fast Alaska Energy Authority Page 11 of 14 charge and the number of fast charge stations that are being deployed. Mr. Thayer explained that all of the locations were required to have Level 3 fast charger hardware. Some of the locations chose to add Level 2 chargers and they were given credit on scoring for the additional access. He explained that AEA did not choose the equipment. The equipment was chosen by the applicants. The list of approved vendors provided was based upon weather compatibility for the region. Mr. Thayer noted that there was only one approved vendor that qualified for locations with weather that reached 40 degrees below zero. Chair Pruhs asked about the length of time it takes to complete a fast charge. Mr. Thayer noted that it takes less than an hour to complete the fast charging process. Chair Pruhs asked if an EV trip from Anchorage to Fairbanks would need an hour stop to recharge. Mr. Thayer agreed to that potential scenario. Chair Pruhs asked if there could be a potential line of cars waiting at the charging station. Mr. Thayer agreed. Chair Pruhs asked if private industry would expand their capabilities based on that sort of input. Mr. Thayer assumes that would occur. He noted that the technology is changing, and in the Lower 48, there are high- powered installations that can charge within 15 minutes. Chair Pruhs asked if there is any indication on what the charging stations may charge. Mr. Thayer informed that there are no restrictions on what stations may charge. He noted that most of the locations are not going to charge for the use of the station because of the benefit of increased activity at their storefront. Ms. MacKinnon commented that the gas tax is one of the issues that other states have been facing as they increase EV usage on their roads. EV users are not contributing to the highways through the gas tax in the same way that petroleum style vehicles are contributing. She asked if staff is reviewing this issue with the RCA and with vendors. There was no response. Ms. MacKinnon then noted that Glennallen, Tok, and Delta Junction are all within the 40- degree below zero sector and thus would only be able to access the single approved vendor. She asked if the added expense of the cold weather equipment created a hurdle for site locations during the grant process. Mr. Thayer explained that 40-below zero weather is a challenge. The grant is to be utilized as an augmentation for the site host to own and maintain the equipment. Commissioner Anderson inquired as to the number of people who are operating electric vehicles in cold weather. Mr. Thayer stated that cold weather is an issue with EV charging. The length of the battery life is also an issue. Improvements to technology continue to occur. This is one of the challenges of the industry. The goal was to create a corridor using a fair and open process. Vice -Chair Karl informed that there are two EV slow charging stations at Chena that were installed for a total cost of about $333.10 each for 220 volts. He said that Chena does not charge a fee to use the chargers. Alaska Energy Authority Page 12 of 14 H. Updated Org Chart as of 8/12/2021 Mr. Thayer reviewed the quarterly organizational chart and noted the change that the Contracting Officer and Contract Administrator is now underneath Mr. Sandstrom, who will be the Chief Procurement Officer. A similar change will be seen on the AIDEA organizational chart under Mr. Heimke. Mr. Thayer updated that the two grey Contracting Officer positions have been offered and accepted. I. Legislative Update Mr. Thayer reported that staff has provided significant amounts of educational information to legislators regarding PCE. J. Community Outreach Engagement Mr. Thayer reviewed the Community Outreach Engagement plan. AEA and AIDEA are sharing a booth at Alaska Federation of Natives Annual Convention (AFN). Mr. Thayer discussed that he and Mr. Weitzner continue to travel and make presentations and are being well -received. K. Articles of Interest - Included in packet. L. Next Regularly Scheduled AEA Board Meeting Wednesday, September 22,2021 Mr. Thayer advised that the next scheduled AEA Board meeting is Wednesday, September 22, 2021, at 8:30 a.m. Ms. Sande asked Mr. Thayer to provide the kilowatt hour comparisons on a statewide basis. She complimented staff for the preparation of the communications information. Mr. Thayer informed that the PCE fiscal report given to the Legislature lists the kilowatt data and other data by each community. He will give the report to Ms. Sande. 10. BOARD COMMENTS Ms. Sande expressed appreciation to Mr. Thayer for his leadership and communication with the Administration and with communities. She understands the impact that funding can have on rural communities. She thanked staff for the information presented during today's meeting and for their diligent work efforts. Ms. Sande thanked the members of the community who took the time to provide public comment. She noted it was nice to see the public face-to-face again. Alaska Energy Authority Page 13 of 14 Mr. Fogle thanked Mr. Thayer and staff for providing the additional feedback and requested follow-up information from the previous Board meetings. He thanked Brandy Dixon for the communications plan. Mr. Fogle noted that he heard positive feedback regarding the successful EV conference at the Dimond Center in Anchorage. He expressed appreciation for AEA taking the lead to create the EV charging corridor. Mr. Fogle hopes this will spur the private sector to fill in the gaps. Ms. MacKinnon expressed appreciation to Mr. Thayer and requested that he extend thanks to his team for their diligent efforts. Ms. MacKinnon supports the previous comments of Board members. She expressed gratitude for the upcoming October Board meeting where members will hear the utilities' perspective regarding the interest rate like structure associated with their debt. Ms. MacKinnon stated that this practice seems counterproductive for that rate payer. She is looking forward to having that conversation with the utilities before expressing opinions on the approach. Ms. MacKinnon thanked the public for their testimony. She appreciates and understands the disappointment that can come from not winning a particular bid and identifying areas of improvement. Ms. MacKinnon discussed that issues were brought before a law judge and that the procurement was conducted according to Alaska State statute. She reiterated that it is nice to see people and to have in - person participation, while being conscious of Covid-19. Ms. MacKinnon stated that she is vaccinated. Mr. Thayer thanked the members for the comments and will relay the accolades to his great team. He reiterated that the hard work is a team effort and the team has been working diligently to be able to participate in ribbon cutting openings for EV fast charging stations this month. Mr. Thayer acknowledged that Mr. Sandstrom stepped up to be the Chief Procurement Officer for both AEA and AIDEA, for a period of time, to ensure that the work during these previous three months was completed. Mr. Thayer recognized Kirk Warren, T.W. Patch, Conner Erickson, Taylor Asher, Betsy McGregor, and Ms. Dixon for their collaborative team efforts. Vice -Chair Karl echoed the previous Board members' comments. He agreed that AEA's team is doing good work. Chair Pruhs expressed appreciation to Board members and to staff. 11. ADJOURNMENT There being no further business of the Board, the AEA meeting adjourned at 10:36 am. o 2 s 9v p n p Curtis Thayer, Executive Director / Secretary 'Q SEAL:::;-: -c Alaska Energy Authority �$i ``•++irr••• +�• !sue Alaska Energy Authority Page 14 of 14