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HomeMy WebLinkAboutAEA Board Meeting April 2022Alaska Energy Authority BOARD MEETING MINUTES Wednesday, April 13, 2022 Anchorage, Alaska 1. CALL TO ORDER ALAS KA ENERGY AUTHORITY Chair Pruhs called the meeting of the Alaska Energy Authority to order on April 13, 2022, at 8:30 am. A quorum was established. 2. ROLL CALL BOARD MEMBERS Members present: Chair Dana Pruhs (Public Member); Vice -Chair Bill Kendig (Public Member); Julie Sande (Commissioner DCCED); Albert Fogle (Public Member); Deven Mitchell (SOA-DOR); Bill Vivlamore (Public Member); and Randy Eledge (Public Member). 3. AGENDA APPROVAL Chair Pruhs indicated that the revised agenda has no items under 7.Old Business. There were no objections or questions. MOTION: A motion was made by Vice -Chair Kendig to approve the agenda, as revised. Motion seconded by Mr. Fogle. The motion to approve the revised agenda, passed without objection. 4. PRIOR MINUTES — March 2, 2022 MOTION: A motion was made by Mr. Fogle to approve the prior minutes of March 2, 2022. Motion seconded by Vice -Chair Kendig. The motion to approve the minutes of the March 2, 2022, minutes passed without objection. S. PUBLIC COMMENTS (2 minutes per person) Chair Pruhs requested comments to be limited to two minutes. He asked that each person clearly state their name for the record. There were no members of the public in -person who wished to make a public comment. Chair Pruhs asked Jennifer Bertolini, AEA, to give directions for public comments. Ms. Bertolini provided directions. Ken Castner from Homer stated that the description for the Executive Session on the agenda contains more specificity than normal and he has comments regarding the early retirement of debt. Mr. Castner expressed his interest in debt management and the use and utility of capital in an inflationary environment. He noted his interest in understanding the relationship between REDUCING THE COST OF ENERGY IN ALASKA �l 813 W Northern Lights Blvd, Anchorage, AK 99503 - Phone: (907) 771-3000 - Fax: (907) 771-3044 • Email: info@akenergyauthority.org debt and tariff, and how the debt is tied into the methods of collecting the tariff to pay the debt. Mr. Castner believes these discussions should occur before the public. He does not understand why the discussion of debt management needs to be during an Executive Session. He reiterated his continued lament for AEA to stop meeting in secret and to conduct the process in public. The Open Meetings Act is not a matter of opinion. It is a matter of law. Mr. Castner believes the Open Meetings Act is clearly designed to bring everything out into the open and into the daylight. There being no other apparent public comments, Chair Pruhs closed the public comment session. Chair Pruhs requested to skip to Item 9. Executive Session for discussion. There was no objection, and the meeting continued at Item 9. Executive Session. 6. NEW BUSINESS A. Resolution 2022-02 Transfer of Assets to Utilities Mr. Thayer discussed the brief memorandum and resolution within the Board packet. The resolution includes language regarding the Intertie Management Committee (IMC), which consists of Golden Valley Electric Association (GVEA), AEA, Chugach Electric Association (CEA), and Matanuska Electric Association (MEA). Mr. Thayer gave a description of the background information from the 1988 agreement. He explained Resolution 2022-02 transfers certain listed and depreciated equipment in Cantwell to GVEA. Upgrades to the line and equipment in the amount of $300,000 are anticipated and GVEA will pay for the upgrades. GVEA requests clear resolution to the ownership of the equipment. There was no listing in the 1988 transfer. Mr. Thayer discussed that the information also contains a list of equipment that shall remain as State owned assets. These are items required for the transmission system. He noted that the list of Cantwell Substation equipment to be transferred to GVEA is not transmission grade and is serving the community of Cantwell. Chair Pruhs asked if there are any other assets that are clouded within the original 1988 transfer. Mr. Thayer stated there were no other clouded assets particular to this Intertie transfer. He advised that there are two small transmission lines from the 1980's in rural Alaska that AEA owns and was unaware of ownership. The right-of-ways are being updated and the proper procurement process is underway to divest AEA of those two transmission lines. These lines were thought to have been extinguished in the 1980's. Additional information will be forthcoming at future meetings. MOTION: A motion was made by Vice -Chair Kendig to approve Resolution 2022-02, authorization for Executive Director to transfer certain equipment in Cantwell, Alaska to Golden Valley Electric Association. Motion seconded by Mr. Fogle. A roll call was taken, and the motion to approve Resolution 2022-02 passed unanimously. B. BPMC Required Project Work Mr. Thayer provided a historical background of AEA's Bradley Lake hydropower project for the Alaska Energy Authority Page 2 of 11 new Board members. He discussed that Bradley Lake was paid for by State appropriation and bonding. The utilities have paid the debt service and the bonds were fully defeased this year. The Power Sales Agreement allowed for any excess funding to go to the Railbelt Energy Fund, subject to appropriations by the Legislature, or to be deemed required project work and used to further advance the project. Any required project work has to be approved by the Department of Law (DOL) and has to obtain a third -party engineering analysis to ensure it is prudent utility practice that will benefit the Bradley Lake project or the transmission of power from Bradley Lake. Mr. Thayer discussed that the SSQ Line was burned in the Swan Lake fire in 2019. AEA purchased the line from HEA using excess payments. The purchase was cleared through DOL as an allowable purpose and intent of required work. Chair Pruhs asked if DOL reviewed and confirmed that the purchase met the intent of the purpose of required project work. Mr. Thayer agreed. Mr. Thayer explained that any upgrades on the line serving the northern utilities north of Homer from the project up to Sterling/Soldotna is required project work. In addition, any upgrades on the line that AEA owns from Sterling/Soldotna to Quartz Creek is required project work. Mr. Thayer discussed that the D. Hittle Report is a five-year look -forward regarding the needed capital projects for Bradley Lake. DOL reviewed the D. Hittle Report and approved the projects as required project work. Mr. Thayer discussed that DOL is reviewing the prospect of placement of a utility -sized battery on the system in multiple locations, including Homer, Anchorage, and Fairbanks. DOL has not delivered a determination on the prospect. Mr. Thayer believes that a prorated share will be deemed required project work for Bradley Lake. He discussed Bradley Lake's oscillation study and the need for batteries to assist with issues. Mr. Thayer noted that upgrades to the lines out of the Kenai peninsula are necessary before any more renewable energy can be introduced. Mr. Thayer discussed the possibility of bonding $200 million to $225 million using the excess payment as debt service to begin the upgrades. The total upgrade package was estimated at less than $300 million without inflation and without logistical. Mr. Thayer reviewed that the Dixon Glacier diversion project at Bradley Lake will be discussed at the next meeting. It has the possibility of electrifying an additional 24,000 homes on the Railbelt. Currently, Bradley Lake services 54,000 homes. The upgrades and the diversion project can occur simultaneously. Chair Pruhs asked for the estimated cost of the Dixon Glacier diversion project. Mr. Thayer noted that the estimate is between $400 million to $500 million. Chair Pruhs commented that the upgrades and diversion project will total approximately $750 million. He asked for the number of people that will service. Mr. Thayer indicated that will service 550,000 people. He explained 80% of the energy needs are provided by one natural gas company in Cook Inlet. As part of divesting supply and focusing on the Governor's bill in the Legislature to take the Railbelt to 80% renewables by 2040, additional renewables need to be introduced to the system. Chair Pruhs asked if the focus is to change from one power source to another power source. Mr. Thayer agreed. Chair Pruhs commented that the number of 24,000 homes is not actually an increase, but rather that the supply is being replaced with a different type of energy. Mr. Thayer Alaska Energy Authority Page 3 of 11 agreed. Chair Pruhs asked how the decrease in natural gas volume will affect the price. Mr. Thayer explained that Bradley power is .04 cent power on the Railbelt. Natural gas is running from $7 to $8, and Fire Island is the highest cost on the Railbelt at $9.70. The goal is that the introduction of renewables is less than natural gas. Mr. Thayer discussed that natural gas is running out in Cook Inlet and part of the equation is to ensure there is enough gas for home heating. Mr. Thayer indicated that Enstar is taking on additional gas storage to meet the winter demands. The utilities do not have a constant load. They need a lot of gas in the wintertime and they do not need as much gas in the summertime. This is causing a disruption in the market because the utility loads are small compared to large industrial customers. Another concern is who gets the market share as the gas supply dwindles. The electrical utilities have a choice to utilize renewable energy. Chair Pruhs discussed the holistic view of the energy system. He noted that effects on one leg of the system affects the other legs and should be considered. Chair Pruhs requested that the big - picture effects and ramifications of spending approximately $750 million is explained and reviewed for consideration. Mr. Thayer explained that AEA is piece of the Governor's policy with the Legislature, but AEA is not a driver in that conversation. Chair Pruhs requested additional information regarding the benefits of the approximately $200 million in upgrades. Mr. Thayer explained that the funding that would be used for the upgrades to the transmission line would not pose an additional cost to the rate payers and it would not cost the State Treasury any money because of the continual power cost adjustments paid by the utilities that is still owed for roughly 20 more years. Mr. Mitchell commented that the larger discussion will occur in the future, and he believes that Mr. Thayer's suggestions make sense, given the Governor's renewable energy goal declaration. Mr. Mitchell requested to know the cost per kilowatt hour for the Dixon Glacier project. He believes Chair Pruhs' comments are well-founded. Mr. Thayer continued the discussion and explained that according to the Power Sales Agreement, required project work monies have to be spent in that year. As staff is creating the financing package for the overall upgrade, there is approximately $12.5 million that has to be spent by June 30tn. In consultation with DOL and the attached memos, the intention of Bradley Lake Management Committee (BPMC) is to pay the $12.5 million against the $17 million SSQ Line debt, of which approximately $11.8 million will be a principal payment. Mr. Thayer explained that AIDEA provided the financing and there is a prepayment penalty of $700,000. He discussed that by April 2023, BPMC anticipates to present an overall bonding package for the transmission upgrades and the assumption of the larger debt using the excess payments. Mr. Thayer discussed that the BPMC members consist of the utilities that use Bradley Lake's power and AEA, as Secretary. He explained that the Chair of the BPMC rotates and that AEA has veto power within their fiduciary responsibility. Mr. Thayer indicated that the BPMC members have worked well together to move this package forward. It is the BPMC's intent to use the excess payments to pay down $11.8 million worth of debt by June 30tn. The DOL has concluded that this is an allowable expense under the Power Sales Agreement, as referenced in the DOL memo in the Board packet dated April 5tn Alaska Energy Authority Page 4 of 11 Mr. Vivlamore inquired as to other available options for the use of the $11.8 million, and he asked what happens to the money if it is not spent as suggested. Mr. Thayer noted that the excess payments would have to be spent by June 301h. The engineering and cost estimates for the larger upgrade package will take eight to 12 months to prepare and this is a way to pay down the debt. Mr. Fogle provided background information for the new members and discussed that when he joined the Board, all the utilities were fighting each other and AEA was not very strong. Mr. Fogle commented that Mr. Thayer's leadership has worked well with the utilities to look forward to the future, rather than fighting. Mr. Fogle expressed appreciation to Mr. Thayer for his continued efforts in upholding AEA's mission to lower the cost of energy for Alaskans. Mr. Thayer informed that a resolution regarding this agenda item of paying down the SQ Line debt is not needed. Mr. Mitchell asked if there is a private activity bond cap for the transmission line financing. Mr. Thayer indicated that legal counsel is currently reviewing that process. The determination is based on the financing entity and the individual utilities. Chair Pruhs requested a brief at -ease. There was no objection. 7. OLD BUSINESS A. None 8. DIRECTOR COMMENTS A. Response to Board Questions Chair Pruhs resumed the meeting, and Mr. Thayer discussed the provided National Renewable Energy Laboratory (NREL) information regarding the Board questions concerning BESS batteries, grid -scale batteries, and cost projections. Also included in the Board packet is a spreadsheet of the Alaska Energy Storage Systems. There were no questions. B. Power Project Fund Loan Dashboard Mr. Thayer discussed the Loan Dashboard Report with 20 outstanding loans and no delinquent amounts. There is $10 million in uncommitted cash balances and a couple of applications in the pipeline. There were no questions. C. Renewable Energy Fund Grant Program — Round 14 Update Mr. Thayer noted that there is a more recent update to the one provided in the packet. The Governor asked the Legislature for $15 million for this round. There are currently over 99 active projects in Alaska and 39 projects in development. The Renewable Energy Fund Advisory Committee (REFAC) consists of four legislators and five public members and will meet on Friday Alaska Energy Authority Page 5 of 11 to review staff's recommendations of the specific projects for the $15 million that will be submitted to the Legislature for Round 14. The information will be shared with the Board at the next meeting. Mr. Thayer noted that the Governor indicated that he would like another $15 million in the following year's budget. The grant program expires in June 2023, and there is current legislation to extend the program to 2033. Mr. Thayer commented that the program is popular and there is no opposition to the proposed extension. Mr. Fogle stated that he does not see any money allocated for Susitna-Watana. He asked if there is funding in the House budget for continuing the licensing process. Mr. Thayer informed that the Renewable Energy Fund is for projects of a smaller size. He explained that the State is about $100 million shy of having a FERC license for Susitna-Watana. Mr. Thayer noted that it is yet to be seen whether or not that funding is included in this year's budget. Congressional delegation conversations are ongoing and have not yet been resolved. Mr. Thayer commented that there are also land issues being addressed regarding the transfer of land into State ownership. There were no additional questions. D. Electric Utility Relief Program (EURP) Update Mr. Thayer discussed the Electric Utility Relief Program Update included in the Board packet. He explained that AEA was asked to distribute the available $7 million in COVID-19 relief funds for reimbursement to utilities for residential debt during the pandemic emergency period. The 35 applicants and the total disbursed amounts of less than $3 million for Round 1 are shown in the report. The relief funding amount cannot be duplicative and some entities received relief funding elsewhere. Round 2 was released and six utilities applied for a total of $42,000. AEA is in discussions with Department of Commerce and the Governor's Office to return almost $4 million of the restricted COVID-19 funding back to the State. There were no questions. E. Denali Commission Update Mr. Thayer discussed the Denali Commission update, including the current and active awards. The Denali Commission received funds of close to $75 million through the Infrastructure Bill to be used for program funding and competitive funding. AEA is within program funding and Denali Commission usually provides a dollar -for -dollar match. There is money for bulk fuel and powerhouses in the capital budget and there are other federal revenue sources as well. Chair Pruhs requested additional discussion and background information on the Denali Commission for the new Board members. Mr. Thayer requested Tim Sandstrom, AEA Chief Operating Officer, to provide an overview. Mr. Sandstrom explained the Denali Commission provides funding for AEA's rural programs in amounts ranging between $5 million to $12 million a year. This year, Denali Commission received a large tranche of funding through IIJA. Approximately $32 million of the funding will be competitive and AEA expects to apply for some of the competitive awards. Approximately $32 million of the funding will be programmatic and AEA anticipates receiving between $15 million to $25 million in funding through the match for programs. Alaska Energy Authority Page 6of11 Chair Pruhs asked who competes for the competitive funding. Mr. Sandstrom noted the funding is open for Alaskans, including individuals, companies, Tribes, and organizations who can all submit applications for the competitive grants. Mr. Sandstrom described the process by which AEA deploys Denali Commission funding to rural communities. There has been a recent effort of coordination between AEA and Denali Commission to avoid duplication of services. Mr. Thayer explained the establishment of the Denali Commission. The Board of Directors is overseen by a federal Co -Chair, who is recommended by Congress and appointed by the President through the Department of Commerce. The current Co -Chair is Garret Boyles. The State Co -Chair is Commissioner Lindbeck from the Department of Labor. Chair Pruhs discussed the importance of the Denali Commission to AEA and to rural Alaska. He reiterated the benefits of coordination to ensure the capital is deployed efficiently and appropriately. Mr. Thayer informed that grant funding from the Denali Commission helps to pay for AEA employees who travel and provide training in rural Alaska. The grant funding also helps to pay for the online library of public reports. Mr. Sandstrom explained that the Circuit Rider Program is guided by regulation. It consists of technical personnel who are deployed throughout the year as a resource to rural utilities to conduct trainings and work on systems such as engines, switch gears, SCADA, and distribution. AEA is careful not to compete with the private market. Mr. Eledge asked if the Circuit Rider information is placed in a maintenance database in order to be proactive and predictive regarding maintenance. Mr. Sandstrom agreed, and noted an inventory and assessment of the powerhouses was completed recently and provides a robust set of data. During each visit, the data is recaptured and updated electronically. The database is reflective of the location of need and efforts. This information is used to target AEA's responses. Mr. Thayer indicated that system was established at the request of the Board approximately three years ago. Chair Pruhs asked Mr. Sandstrom to present an overview of the database at the next Board meeting. Mr. Sandstrom agreed. Commissioner Sande asked if the online portal is similar to the portal that DCRA is using for the online community data. Mr. Sandstrom explained that the database is different. He noted that there is another effort to create a similar portal to the one utilized by DCRA. F. Rural Update Mr. Thayer requested Mr. Sandstrom provide the Rural Update. Mr. Sandstrom highlighted that the training funded through the Denali Commission has trained 219 powerplant and bulk fuel operators over the last five years. This is an ongoing challenge for communities. Once the operators are trained, they sometimes have other opportunities and move on. During COVID-19, the training was conducted both online and in -lab. Mr. Sandstrom discussed there are two new powerhouse modules for construction in 2023. He indicated that bids are being received at 50% to 100% over the engineer estimates and sometimes Alaska Energy Authority Page 7 of 11 there is only a single bidder. Mr. Sandstrom noted the analysis regarding slowing the construction. There are indications that logistics may resolve in 2023 or 2024. The hope is that more competition will enter the market. Mr. Sandstrom reviewed the bulk fuel and inventory effort is similar to the powerhouse inventory effort. There are approximately 400 bulk fuel facilities and data is being collected. Chair Pruhs commented that he is in the construction business and confirms that pricing and availability in the supply chain and manpower are very challenging issues in the industry. He gave an anecdotal example of prices doubling in 12 months. Chair Pruhs emphasized the importance of management and expressed appreciation to Mr. Sandstrom for the efforts. Mr. Eledge inquired as to how far in advance the engineering analysis is completed. Mr. Sandstrom noted that the engineering analysis is historically completed about a year in advance during the beginning of conceptual design. Currently, the engineering analysis is continuously updated and staff reviews the numbers to understand the increases. Fuel costs can be quantified. Logistics and supply chain delays can be quantified. There are some increased costs that remain questionable and need additional consideration. Mr. Eledge speculated that a portion of the increase is due to lack of staffing and having to utilize overtime hours to complete projects. Mr. Sandstrom discussed reports of some industries that receive union wages and bonuses in order to work in rural areas during these challenging times. G. Railbelt Reliability Council (RRC) Update Mr. Thayer gave the update and background for the RRC. Several years ago, the Legislature passed legislation championed by Senator John Coghill which established the RRC. The 12- member Board consists of the five utilities, AEA, five NGO's, and the CEO. The CEO position is not yet filled and will have the tie -braking vote. The staff will be paid for by the rate payers of the utilities. The purpose of the RRC is to establish an Integrated Resource Plan. Work on the plan has been ongoing for 20 months. The application to Regulatory Commission of Alaska (RCA) is 300 pages long. The expectation is that the RCA will make a determination at the end of 2022 or the beginning of 2023. Mr. Thayer explained AEA is not on the Executive Committee, but is a voting member of the Board. AEA is the largest transmission owner on the Railbelt, including Bradley Lake and the Alaska Intertie. There were no questions. H. Legislative Update Mr. Thayer discussed that all of the responses to legislators are included in the Board packet. The House approved the Governor's recommendation for the operating budget and it is now in the Senate. Last week, the Governor introduced the Infrastructure Bill of HB414 and SB241 that contains about $10 million into AEA, including $5 million for electrical grid modernization reliability for transmission opportunities, $1 million to help coordinate the plan through the competitive process, $2 million receipt authority for the Energy Efficiency and Conservation Block Grant Program, and $800,000 to the existing Revolving Loan Fund. Mr. Thayer explained that the development of a State Energy Plan and auditor training must occur. Some of the efforts are in conjunction with Alaska Housing Finance. AEA received the funding for the State Energy Plan Alaska Energy Authority Page 8 of 11 from the federal government and the program money will be distributed over five years. Mr. Thayer discussed that AEA continues to work with State Department of Transportation (DOT). He noted that there is $50 million in program money with the National Electric Vehicle Infrastructure, of which the first year's funding is $7.7 million. A completed highway corridor and marine highway system plan is required to be submitted to the U.S. DOT by August V. Mr. Thayer explained the ongoing work with these efforts under an MOU with State DOT. Two national standard issues have been identified with U.S. DOT; the 50-mile distance requirement and the 150 kW charger requirement, which is larger than the power used in some of the communities on a year-round basis. Other states are challenged with the same issues and collaborative work to resolve the issues is occurring. Commissioner Sande asked what the State match is on the program. Mr. Thayer indicated that there is a 20% State match. The initial funding this year from IIJA is $7.7 million. The Administration has the match in a supplemental and in some of AEA's planning monies. Chair Pruhs inquired as to status on the airport project with DOT. Mr. Thayer explained that AEA applied for a build grant through the U.S. DOT to help build an Alaska cargo and cold storage facility at the airport. The total cost was approximately $200 million, of which AEA received a $21 million grant for energy efficiency and renewables for the facility. McKinley Capital Management is the primary on the project and there are other partners. Mr. Thayer indicated that he recently spoke with Rob Gillam of McKinley and the plan is for groundbreaking to occur this year. The size and scope of the project has shifted to a smaller facility with more aircraft parking. One of the issues is that the U.S. DOT wants AEA to be part of Transportation Planning and Programming (TPP). AEA applied to the TPP, even though the facility is behind the fence and on the masterplan for the airport. Those issues are being worked through with the federal delegation to provide clarity on the intention of the grant money and how to keep the process and the project moving forward. Chair Pruhs inquired as to the provided PCE data for Inside Passage Electric (IPEC). Mr. Thayer explained that information was provided in response to a legislative inquiry from Senator Stedman. Chair Pruhs asked if there is a typographical error regarding 2018 showing an average price of fuel per gallon at $7.34. No response was given. Chair Pruhs commented that the average price of fuel decreased from 2018 to 2021, but the reported residential rate increased 10% for that same time period. Chair Pruhs requested information as to the cause of that happening. Mr. Thayer noted that the information provided is in response to a request for information for the Inside Passage Electric utility three-year average. Mr. Thayer stated that he can provide an analysis of the data. Chair Pruhs explained that he is curious that in 2018, the average price of fuel was $2.45 per gallon and in 2021, the average price of fuel reduced about 30% to $1.98 per gallon, but that the rate based on 500 kWh increased from .56 cents to .61 cents in the same time period. Mr. Thayer noted that IPE also introduced and removed hydro energy over the time period. He suggested that some of the costs could be a fluctuation in the amount of fuel they needed to purchase during that time. Alaska Energy Authority Page 9 of 11 Mr. Fogle discussed that AEA used a portion of the VW Settlement funds to begin the implementation of an electric vehicle (EV) corridor between Homer and Fairbanks. He requested Mr. Thayer explain to the new members and to the public how AEA began the EV corridor process and the plan of continued growth. Mr. Thayer explained that AEA was the recipient of the VW Settlement regarding the emissions issue. Alaska's portion was $8.7 million. The plan was developed through a Court Trustee. The funding was used to replace 33 older school busses, one electric school bus in Tok, one electric bus in Juneau, one box truck in Anchorage, and for the Diesel Emission Reduction Act (DERA) program in rural Alaska. Additionally, 15% of the funds were set aside for EVs. An RFP went out for possible site host charging stations from Homer to Fairbanks. The RFP required a 20% match and required a fast charger. Mr. Thayer discussed that 24 applicants responded to the RFP and one was disqualified due to location of more than five miles off the road system. There were funds available for nine charging stations. The first charging station that went online was in Homer. The plan was to conduct Phase 2 for Tok, Glennallen, and Delta Junction. This plan was paused because the IIJA funding came through and provided program money for Alaska. AEA is using planning money to help establish the plan for AEA to meet the qualifications to receive funding over the next five years. AEA intends to submit an RFI for the plan development of the highway corridor to identify which communities want charging stations. The aim is to conduct another grant program with an 80/20 match structure for the charging stations. Mr. Thayer explained that the grant program has requirements for the first three to five years that AEA would have to meet and maintain, but AEA would not own the charging stations. The business location of the charging station absorbs the liability of the charging station. Chair Pruhs asked if the business location has to carry minimum liability insurance. Mr. Thayer noted that he would have to provide that information to the Chair. He explained that AEA selected nine vendors that met certain qualifications for Alaska and the individual site hosts had the flexibility to choose the from the list of vendors. Mr. Eledge asked Mr. Thayer if there is a financial penalty for the federal funding if the minimum of 50 miles is not met. Mr. Thayer discussed there is not a penalty because that is one of the challenges for most of the western states. He noted that the current status is to communicate what standards cannot be met. Mr. Thayer believes the national plan was built for east of the Mississippi River. There were no additional questions. I. Community Outreach Mr. Thayer informed that community outreach program is ongoing, and the presentations are included in the packet. He highlighted that the Governor is hosting an Alaska Sustainability Conference in May for three days in Anchorage, which coincides, but does not interfere with the next Board meeting. Mr. Thayer advised that there were issues with planning, and Brandy Dixon, AEA, has stepped in to efficiently coordinate the activities. Mr. Thayer introduced Megan Schmidt, AEA HR Director, who is taking Linda Senn's position after retirement. Mr. Thayer expressed appreciation to Ms. Senn for her service. Chair Pruhs welcomed Alaska Energy Authority Page 10 of 11 Ms. Schmidt and requested that she provide her background information. Ms. Schmidt gave a brief biographical and professional background. Chair Pruhs expressed appreciation to Ms. Senn for her dedication. J. Articles of Interest — Included in packet. K. Next Regularly Scheduled AEA Board Meeting Wednesday, May 25, 2022 9. EXECUTIVE SESSION: None Chair Pruhs requested that Curtis Thayer, Executive Director, discuss the item. Mr. Thayer indicated that after consultation with the Department of Law (DOL), the Executive Session does not need to occur. The discussion points are contained within the posted agenda for required project work. This includes the attorney/client communications memo that was publicly released. There was no objection to modifying today's agenda to eliminate Item 9. Executive Session. Chair Pruhs returned the meeting to Item 6. New Business. 10. BOARD COMMENTS Mr. Fogle commented on today's discussions regarding AEA's current improvements which are a positive result of Mr. Thayer's leadership, including the relationship with the utilities, the creation of a maintenance database for rural Alaska, and the overall improvements to the day-to-day operations. Mr. Fogle welcomed Mr. Sandstrom to his new position. Chair Pruhs welcomed Mr. Mitchell to the Board. Mr. Mitchell provided a brief description of his professional background. Chair Pruhs expressed appreciation to Mr. Thayer, staff, and to Ms. Bertolini. 11. ADJOURNMENT There being no further business of the Board, the AEA meeting adjourned at 9:58 am. e /2� 91- Curtis W. Thayer, Executive Director / Secretary WittiIItII111J SEAL 197E Alaska Energy Authority Page 11 of 11