Loading...
HomeMy WebLinkAboutAEA Board Meeting Aug 2022Alaska Energy Authority BOARD MEETING MINUTES Wednesday, August 3, 2022 Anchorage, Alaska 1. CALL TO ORDER ALASKA ENERGY AUTHORITY Chair Pruhs called the meeting of the Alaska Energy Authority to order on August 3, 2022, at 8:31 am. A quorum was established. Chair Pruhs informed that Commissioner Sande will arrive late. 2. ROLL CALL BOARD MEMBERS Members present: Chair Dana Pruhs (Public Member); Vice -Chair Bill Kendig (Public Member); Julie Sande (Commissioner DCCED) (Arrived 9:43 a.m.); Albert Fogle (Public Member); Deven Mitchell (SOA-DOR); Bill Vivlamore (Public Member); and Randy Eledge (Public Member). 3. AGENDA APPROVAL Vice -Chair Kendig requested an amendment to the agenda, adding Executive Session as Item 8. and renumbering the subsequent items. Curtis Thayer, Executive Director, provided an update on the pending lawsuit in Homer Superior Court of Kenneth Castner versus AIDEA and AEA. The lawsuit alleges both AIDEA and AEA Board's have continuously violated the Open Meetings Act since September of 2020. Counsel for AIDEA and AEA has discussed a settlement with Mr. Castner. As of Monday afternoon, the proposed settlement agreement has been determined and resolves the issue of the preliminary injunction hearing scheduled for Friday, August 5, in Homer. The agreement is only binding if AIDEA and AEA Board's take action and approve the written settlement. Mr. Thayer informed that Assistant Attorney General Gene Hickey, Department of Law, is available today to present to AIDEA and AEA Boards the proposed settlement agreement, to explain the legal requirements for the settlement agreement, and to provide legal advice concerning the ramifications. Mr. Thayer requested the Board enter into an Executive Session during the meeting to discuss the proposed settlement agreement with Mr. Hickey. MOTION: A motion was made by Vice -Chair Kendig to amend the agenda, adding an Executive Session as Item 8. Motion seconded by Mr. Vivlamore. The motion to amend the agenda, adding Executive Session as Item 8., passed without objection. MOTION: A motion was made by Vice -Chair Kendig to approve the amended agenda. Motion seconded by Mr. Vivlamore. The motion to approve the amended agenda passed without objection. •' •' 813 W Northern Lights Blvd, Anchorage, AK 99503 • Phone: (907) 771-3000 - Fax: (907) 771-3044 • Email: info@akenergyauthority.org 4. PRIOR MINUTES — May 25, 2022 MOTION: A motion was made by Vice -Chair Kendig to approve the prior minutes of May 25, 2022, as presented. Motion seconded by Mr. Vivlamore. The motion to approve the minutes of the May 25, 2022, passed without objection. S. PUBLIC COMMENTS (2 minutes per person) - NONE There were no members of the public online or in -person who requested to comment. 6. NEW BUSINESS - NONE 7. OLD BUSINESS A. BPMC's prepayment of certain debt obligations to the SSQ Line Mr. Thayer discussed the notification included in the Board packet for the Bradley Lake Project Management Committee's (BPMC) prepayment of $11.5 million to the Power Revenue Bond, 10tn Series. The prepayment includes interest of $293,000, principal of $10.9 million, and a prepayment penalty of $266,000. The outstanding loan balance is $6,060,000, and the borrower is responsible for revised principal and interest payments through July 2040 per the Loan Agreement. Chair Pruhs asked if each utility paid their percentage of the BPMC prepayment. Mr. Thayer agreed, and explained that the approved funds were the remaining FY22 Bradley Lake excess payments. There were no other questions. MOTION: A motion was made by Vice -Chair Kendig to enter into Executive Session to permit Assistant Attorney General (AAG) Hickey to present to the Board the proposed settlement agreement between Kenneth Castner and AIDEA and AEA, and for the purpose of Mr. Hickey to offer his analysis, to answer Board questions and concerns, and to provide legal advice concerning the proposed settlement agreement. This matter is protected by attorney/client privilege. Executive Session on this topic is permitted under AS 44.62.310(c)(1), which provides that an Executive Session is appropriate to discuss matters which by law are required to be confidential. Motion seconded by Mr. Vivlamore. A roll call was taken, and the motion to enter into Executive Session was approved unanimously, with Commissioner Sande absent. 8. EXECUTIVE SESSION: 8:40 am Discuss a possible settlement in Castner v. AIDEA and AEA, Docket No. 3HO-20--- 265CI The Board reconvened its regular meeting at 8:56 am. Chair Pruhs advised that during Executive Session, Counsel presented the proposed settlement agreement between Mr. Castner and AIDEA Alaska Energy Authority Page 2 of 12 and AEA, provided legal advice on the proposed settlement, and answered questions. The Board did not take any action on the proposed settlement agreement during Executive Session. Chair Pruhs requested Mr. Hickey provide additional information. Mr. Hickey discussed that a hearing is scheduled pertaining to Mr. Castner's application for a preliminary injunction on August 5, 2022. The proposed settlement agreement resolved the application for preliminary injunction and resolved the case as a whole. Mr. Hickey recommended that the Board entertain a motion to approve the settlement agreement between Mr. Castner and AIDEA and AEA. MOTION: A motion was made by Vice -Chair Kendig to approve the proposed settlement agreement between Mr. Castner and AEA, and to give authority to Mr. Thayer to sign the agreement. Motion seconded by Mr. Vivlamore. A roll call vote was taken, and the motion to approve the proposed settlement agreement between Mr. Castner and AEA, and to give authority to Mr. Thayer to sign the agreement passed unanimously, with Commissioner Sande absent. 9. DIRECTOR COMMENTS A. Response to Board Questions Mr. Thayer discussed that Item 1., the demonstration of the Rural Power House Assessment is not available today due to a corrupt file that was found during the test yesterday. The information will be provided at the next meeting. Mr. Thayer noted that Items 2. and 3. are currently on hold. Item 4., the cost per kWh related to hydro, is attached in the Board packet. B. Letter from Dept. of Administration regarding AEA FY22 Audit Mr. Thayer discussed the included letter from Department of Administration regarding the AEA FY22 Audit. The letter requests notification if AEA cannot meet the audit schedule of audited financial statements by October 17. Mr. Thayer indicated that AEA is not going to meet the audit schedule due to challenges with the large amount of staff turnover. The closing of the books has been delayed by at least a month, which has caused further delay in the audit. Mr. Thayer reported that AEA currently has position vacancies for Comptroller and Assistant Comptroller. There have been three different Comptrollers this year. Two of them were hired by other utilities and the third one returned to the private sector. An RFP for accounting firm services has been submitted and no replies have been received. Mr. Thayer believes the delay in the audit will be 60 days to 90 days. He noted that resources will not be pulled from AIDEA because AIDEA is on track with their schedule and AIDEA recently lost their Comptroller. AEA will continue to look for outside auditors to assist in the preparation of the audit. Mr. Thayer discussed the challenges in the industry that no auditors have responded to the RFP. He stated that updates will be provided to the Board on a regular basis. Chair Pruhs asked what the ramifications are for submitting a late audit. Mr. Thayer indicated that Alaska Energy Authority Page 3 of 12 staff will make the requested notification of the delay to Department of Administration and will contact the Legislative Budget and Audit Committee to develop a plan going forward. Mr. Thayer noted that it is not uncommon for agencies to have problems. However, he does not have any specific information regarding other agencies. Chair Pruhs commented that his business's annual audit this year was delayed by four months. He asked for an update on the replacement personnel. Mr. Thayer indicated that interviews for Comptroller and Assistant Comptroller are occurring. Previous personnel who are now retired have returned by contract to assist in the training. Mr. Mitchell asked if the RFP effort for the audit services was both in and out of state. Mr. Thayer indicated that the RFP was both in and out of state. Mr. Mitchell commented that the Municipality is also seeking a Comptroller. He noted the difficulty in finding qualified accounting staff. Mr. Thayer discussed that AEA submits many federal filings for grants each year. He informed that Tim Sandstrom, Chief Operating Officer, and his team have assisted in the submittal of all grant reporting for this year. Mr. Mitchell asked if staff will be able to provide draft financials to Department of Administration in order for the State CAFR to be completed by their scheduled due date of December 15, 2022. Mr. Mitchell indicated that an unidentified person was nodding in the affirmative. Chair Pruhs requested that Mr. Thayer let the Board know if there is anything they can do to help with the process. Mr. Thayer agreed. He reiterated that the struggle is in finding people to assist with the preparation. Mr. Fogle requested additional information on the process. He asked if the completed draft financials will be emailed to Board members for review prior to a Board meeting. Mr. Thayer agreed. C. Owned Assets Update Mr. Thayer discussed the Owned Assets Update included in the Board packet. AEA is working with Chugach Electric Association (CEA) to perform and procure the AEA -owned Sterling -Quartz (SSQ) section upgrade. A public meeting was held in June regarding the Dixon Diversion and was followed by a site visit the next day. Media attended and the visit was well -received. The Intertie and the Bradley Lake Hydroelectric Project are both running smoothly at this time. Mr. Thayer noted that lake water levels are higher now than they were at this time last year. D. Bradley Lake Required Project Work Update Mr. Thayer advised that the included Bradley Lake Required Project Work information regards the financing of the transmission upgrades. AEA has been working with the utilities on developing the term sheet that is acceptable to all parties. The draft term sheet from the National Cooperative Services Corporation is included in the Board packet for informational purposes. Mr. Thayer Alaska Energy Authority Page 4 of 12 discussed the bond fund advisors and counsel AEA is currently utilizing. He reviewed the timeline of the process. Mr. Thayer noted the challenge of rising interest rates. When the financing ability process was announced, the anticipated amount was about $200 million. With the rise of interest rates, the amount is now closer to $170 million. The total cost of the projects was about $270 million. Mr. Thayer indicated the possibility that rates could increase again before the process is complete, which would further reduce the $170 million. The intent is for AEA and the utilities to improve the scheduled timeline of final closing and funding before December 15 in order to receive the best interest rates. Chair Pruhs requested that a schedule is provided at the next Board meeting that includes each of the required work projects with their anticipated start and finish dates. Mr. Thayer agreed. He noted that those discussions are occurring with the utilities because the availability of the projects decreases as the amount of funding decreases. Mr. Thayer discussed that Department of Law's memos allow for great flexibility in the projects. The primary focus with this tranche of funding is on AEA's Sterling to Quartz Creek project funding and other transmission upgrades. E. State Energy Program (SEP) Update Mr. Thayer discussed that the SEP is a federal program and additional lump -sum funding of approximately $4 million anticipated through the Infrastructure Investment and Jobs Act (IIJA). This will be shared with Alaska Housing Finance (AHFC). One of the IIJA requirements is for the State to develop a state energy plan (Energy Security Plan). AEA applied and received a grant for $200,000 to develop the state energy plan. The development and drafting of the plan will involve third -party participation, including Enstar, Department of Natural Resources (DNR), Department of Environmental Conservation (DEC), and others. The comprehensive plan is due in June of 2023. F. Power Cost Equalization (PCE) Memo Mr. Thayer discussed the PCE FY24 budget information from Department of Revenue. The average monthly market value of the fund for the previous three closed fiscal years is about $1.1 billion. The fund had losses of $143 million last year. The fund had earnings of approximately $150 million in the previous year and provided full funding of PCE, funding for community assistance, funding for powerhouse, and funding for the Renewable Energy Program. Mr. Thayer explained that the Legislature passed a bill that was signed by the Governor last month that increased the payment of PCE in rural Alaska from the first 500 kWh to the first 750 kWh. This increases the cost of the program from $30 million to about $45 million. The calculated amount of funding this year is about $50 million, which will fully fund PCE, but will not provide funding for other programs. He expressed concern that if the market returns for next year yield another loss, there is a possibility that full funding for PCE at the 750 kWh level will not be available. Mr. Thayer indicated this will be addressed as a broader conversation with the Governor's Office and with the Legislature. He does not believe that the potential loss of 10%, such as this, was anticipated. Alaska Energy Authority Page 5 of 12 Chair Pruhs asked what choices are available if that scenario occurs. Mr. Thayer indicated that choices include withdrawing from the corpus of the fund, withdrawing from general funds, or adding funds to the corpus. Chair Pruhs asked if there a trigger clause if the returns on the fund do not meet the cost of the 750 kWh. Mr. Thayer commented that the endowment fund has never experienced being negative into the PCE. He noted the combination of the factors that the earnings are down and the payout has increased by 50%. Mr. Thayer explained that in the past, the PCE payment in rural Alaska was 750 kWh and then the State reduced it to 500 kWh, and it has now been increased back to 750 kWh. Mr. Mitchell commented that there are many advocates for the fund. He believes it is important to focus attention on the primary purpose of the fund. Mr. Mitchell reiterated the message of potential concern should be conveyed to OMB, AML, and others that if there are additional reductions to the corpus of the funds, then the 5% payout will not be able to fund the PCE payment of 750 kWh. Mr. Thayer agreed and noted that he is meeting with AML later this month regarding this issue. Chair Pruhs asked if the statute includes a target return rate for the fund. Mr. Thayer indicated that it does not. He noted that the language has a description of prudent investor returns. Chair Pruhs asked if he is correct that the fund lost over 10% of its value in12 months. Mr. Mitchell commented that the fund probably earned 20% last year. Mr. Thayer discussed that the operation of the fund .and program were changed about eight years ago and this is the sharpest decline in return since that time. G. Renewable Energy Fund (REF) Update Mr. Thayer discussed the REF Update for Round 14. The information includes a summary of applications by energy region and by technology type. The Governor included $15 million in the budget and the Legislature approved the amount. There are 27 projects, totaling $14,972,000. The process is underway for the distribution of the grant monies. Chair Pruhs inquired if AEA is watching the events of the geothermal project in Unalaska, Dutch Harbor. Mr. Thayer agreed. Chair Pruhs requested an update. Mr. Thayer noted that conversations with the Governor's Office have been ongoing regarding the project and there has not been a determination if State resources can be provided. Mr. Thayer discussed that the change in Unalaska from a diesel fuel source to a geothermal fuel source does not change the price to the community. He explained that because of the location and the limited number of people, the USDA federal funding to refinance the project at 3% could be available only after the project is built and operational. Mr. Thayer commented that discussions continue with legislators and the Governor's Office regarding the ultimate policy on the issue. Chair Pruhs asked for the amount of grant funding needed for the project. Mr. Thayer noted that the project would need in excess of $100 million in the form of a grant subsidy. Chair Pruhs asked if the project has a rate of return. Mr. Thayer expressed his understanding that the most recent rate of return on the project is 6%. Mr. Thayer noted that legislative approval is necessary for either funding or AEA ownership of the project. Alaska Energy Authority Page 6 of 12 Chair Pruhs discussed the possibility of utilizing $50 million or $100 million from the PCE Fund for two years and investing in the geothermal project in rural Alaska instead of the stock market. He noted that the PCE Fund would then receive the 6% rate of return for the next 30 to 40 years, with the guarantee of the Federal Government. Chair Pruhs asked Mr. Mitchell if that is a viable option or if the State has any mechanisms within Revenue that would address this option. Mr. Mitchell noted that the mechanism would have to be legislatively mandated. Chair Pruhs expressed understanding that the Legislature would have to mandate any agreement. Chair Pruhs asked Mr. Mitchell if the option or mechanism is available. Mr. Mitchell commented that the 6% rate of return is high for a short-term investment. He noted that there are risks and other considerations associated with this investment. Mr. Mitchell discussed the option would be similar to interim financing provided for the Yukon-Kuskokwim Health Corporation's hospital project in Bethel, in which the USDA guaranteed a loan upon completion of the hospital. Mr. Mitchell commented that the City currently owns the electric utility in Unalaska and any agreement would need to make them whole. Mr. Thayer explained that the Village Corporation and the utility have a Power Sales Agreement with conditions. Chair Pruhs agreed that there are a multitude of related details and his question was focused on the big picture. He thanked Mr. Thayer for the update and requested additional information when available. H. Power Project Fund - Southfork Hydro, LLC Mr. Thayer reviewed the informational page regarding the consideration of the Power Project Fund (PPF) Loan Committee's refinance of Southfork Hydro's loan. The borrower is located in the Eagle River Valley and sells power to Matanuska Electric Association (MEA). The refinance request was made in order to help finance an additional turbine in the powerhouse, which will increase the power sales to MEA. I. Alternative Energy & Energy Efficiency (AEEE) Update Mr. Thayer noted that included in the Board packet is a list of the ongoing projects within the AEEE Program led by Director Audrey Alstrom. Many of the projects are related to the REF funding. J. Electric Vehicle Update i. State of Alaska NEVI Plan Mr. Thayer reviewed that the public comment period ended recently regarding the Electric Vehicle Infrastructure Implementation Plan (The Plan) that was filed with the US Department of Energy and Federal Highways, in conjunction with Department of Transportation (DOT). Mr. Thayer highlighted for the record that the submitted Plan is a living document that can be changed and updated. A notification will occur within 60 days if the Plan needs to have changes made this year. If no changes are necessary, then the funding for this year will be approximately $7.8 million. Alaska Energy Authority Page 7 of 12 There is $50 million available over the course of five years. AEA is the lead agency and the grant runs through DOT, who handles the accounting and reporting requirements. A press release is anticipated with Commissioner Ryan Anderson. Mr. Thayer discussed that an MOU is being developed between AEA and DOT regarding the split of the costs. The State budget did not allow for funding for AEA to apply for additional EV in rural Alaska. Rural Alaska is disqualified from this Plan because they are not part of the national highway corridor or the marine highway system. Mr. Thayer complimented Ms. Alstrom and her team for completing the over 100-page Plan within the 60-day timeframe. He requested that she review the included PowerPoint presentation. Ms. Alstrom discussed that the AEEE is leading the EV effort for AEA through the IIJA's National Electric Vehicle Infrastructure (NEVI) Program. She reiterated that the Plan is slated to receive $7.8 million in the first year, and a total of $50 million over the next five years. The funding is 80% Federal and requires a 20% State or private match. Ms. Alstrom reviewed the graphic showing the highway system within Alaska, including the designated alternative fuel corridor (AFC) that was nominated by DOT in Round 4. One of the NEVI requirements is that states must build out their designated alternative fuel corridors first. This is the section between Anchorage and Fairbanks. The EV charging stations must meet certain NEVI requirements. Each station must be within 50 miles of each other. There is one section between communities in the AFC that is 80 miles apart and is without a power source. An application was submitted for a discretionary exception to the 50-mile rule. Stations must have at least four charging ports that are capable of charging 150 kW simultaneously. Once the AFC is built out, any excess funds can be used elsewhere. Ms. Alstrom reviewed the NEVI Program timeline and the overview of NEVI requirements. She noted that the Alaska Electric Vehicle Working Group discussed and developed the overall plan vision and goals listed within the presentation. Ms. Alstrom explained the outlook for the five- year program and build -out is divided into four phases. Phase 1 is the build out of Alaska AFC. Phase 2 is the build out of Alaska's highway and marine highway systems. As funding allows, Phase 3 is the installation of charging stations in rural hub communities. Phase 4 is the installation of charging stations in urban and "destination" locations. Ms. Alstrom discussed the contracting options and strategies for acquisition of the equipment, installation, and operations and maintenance (O&M). The preferred option was determined to be a competitive grant program. Ms. Alstrom noted that the Volkswagen Mitigation Trust is currently installing nine stations between Homer and Healy at approximately every 100 miles. This is not NEVI compliant. The NEVI effort requires the placement of the charging stations every 50 miles within the stated corridor. Ms. Alstrom informed there are about 1,300 EVs in the state. She discussed the growth scenarios over the next five years based on continued growth and aggressive growth. Ms. Alstrom reviewed the graphic illustrating that the Railbelt has more than enough grid capacity to meet the needs of the installation of the charging stations. Alaska Energy Authority Page 8 of 12 Ms. Alstrom highlighted the evaluation of the risks and challenges of the plan and program. She discussed the lack of development in areas, climate challenges, barriers to consumer adoptions, energy sources and costs, and private investment challenges. The funding burden on the site host is expected to be approximately $200,000. This could limit participation. Ms. Alstrom reviewed the strategies for implementation of the plan, including O&M, identification of site hosts, data collection, snow removal, workforce development, and consideration of State fleet transition. A focus on cyber security will also be addressed in the Plan. Ms. Alstrom informed that Federal programs include civil rights and equity considerations, which are compliant with Title VI, Americans with Disabilities Act (ADA), Disadvantaged Communities (DACs), and Justice40. These considerations ensure that infrastructure is inclusive and accessible to all. The Justice40 Initiative is an effort that 40% of all the benefits of the program will go to a disadvantaged community. Of the stakeholder list identified for Alaska's Plan, about half of the entities qualify as being located in a disadvantaged community. Other benefits include workforce development opportunities and retention within the state. There are currently three EV IPP certified contractors within the state. Ms. Alstrom advised that included in the Board packet is the over 100-page Plan that was submitted. Commissioner Sande asked if it is cost prohibitive to consider adding transmission in the 80-mile area where there is currently no service. Ms. Alstrom noted that informal estimates that considered installation of a solar farm to support the compliant EV charging site were cost prohibitive. Commissioner Sande asked if there is a possibility that the funding may not be fully expended because of the Justice40 element. She noted that many of the disadvantaged communities may not have an interest or the ability for EV charging infrastructure. Ms. Alstrom commented that is not a high concern. She discussed that based on census data, a map was released of all of the disadvantaged communities and included most of Alaska. Vice -Chair Kendig asked what size of solar farm would be needed to be compliant for the four - stall EV charging station. Ms. Alstrom discussed that the estimates for the needs of the charging station is up to 600 kW at once and solar typically has a capacity factor of 20%, which would be approximately 4,800 kW or 5 MW. Mr. Eledge expressed appreciation and complimented Ms. Alstrom and the team on the comprehensive implementation plan. He asked if any agency has plans to address the end of life - cycle ramifications of EVs. Ms. Alstrom noted that those discussions have not been considered yet and believes they will occur at a later point, based on public feedback. Mr. Eledge expressed particular concern regarding the rural communities that may be serviced by airplanes in the summer. K. EURP Update Mr. Thayer noted the Electric Utility Relief Program (EURP) Update is included in the Board packet. Round 1 of the program included 35 grantees and disbursed $2.9 million. Round 2 of the program included five grantees and disbursed $37,000. Round 3 of the program included 10 grantees and disbursed $435,000. There is currently $3.4 million available from the original designated amount Alaska Energy Authority Page 9 of 12 of $6.8 million. Mr. Thayer will discuss with Department of Commerce to relieve AEA of this program. L. AEA/ GVEA Black Rapids Training Center Line Extension Grant Mr. Thayer discussed that the AEA / Golden Valley Electric Association (GVEA) Black Rapids Training Center Line Extension Grant is a necessary partnering project that is not within AEA's normal day-to-day operations and is within the category of other duties, as assigned. The opportunity utilizes infrastructure funds that can be applied for by a State agency. The application for $12 million was submitted and is being reviewed. The application is included in the Board packet. If the application is successful, GVEA would supply the match and AEA would administer the funds as a pass -through. M. AEA Whittier Chugach Electrification Project Grant Mr. Thayer informed that the AEA Whittier Chugach Electrification Project Grant is through U.S. DOT and the Port Infrastructure Development Program. The application for $10 million is to electrify the dock in Whittier so that the ships can plug into shore power rather than running their engines for power. Partners include CEA and City of Whittier. The application is included in the Board packet. Mr. Thayer discussed that if the grant application is successful, it can be duplicated in Ketchikan, Juneau, Sitka, Seward and other ports. This project aligns with AEA's mission. Commissioner Sande expressed her understanding that these efforts have to be completed because the cruise industry will have to respond to the new regulations. Mr. Thayer agreed. He noted that this is a $10 million project and if other projects occur that are $50 million or $70 million, then a discussion will need to occur regarding the effect of staffing levels and the administration of the program. Mr. Thayer discussed that there is currently a $5 per head tax on cruise ships for the first five ports of call. The State receives a portion of the head tax and the funds have to be used for projects that benefit the cruise industry. There is the opportunity for the State match to be funded by the head tax since the project directly benefits the cruise industry. Commissioner Sande asked if AEA is taking the lead in the conversations with the communities regarding the grant and application process. Mr. Thayer agreed it is appropriate for AEA to answer any questions from communities. He noted that this is the first application submitted and if it is successful, then it can be modeled across the state. Mr. Thayer commented that CEA has the grid to support electrification of the terminal and the project may be more challenging in other parts of Southeast Alaska, depending on whether or not the local grid can support the additional power needs. He believes that AEA's role will be as a conduit. Partnership with the utilities, local community, and the cruise ship industry will need to occur. Commissioner Sande expressed appreciation for all of the ways the State has participated in this process. Chair Pruhs commented on the benefits for the cruise ships if they can plug in while docked and not run their generators. He asked if it is the intent that a four -month business does not burden Alaska Energy Authority Page 10 of 12 the residents of the area 12 months of the year. Mr. Thayer discussed that one of the conditions to be considered is to ensure that the community can support the additional power needs. He noted that this is not a major issue for CEA, for instance, but it would be more challenging in other communities, such as Juneau, who currently does not have enough hydro power capacity to support all of the opportunities. Mr. Mitchell informed that Juneau currently has an electrified dock with an interruptible power agreement and subsidized rate. He believes that Ketchikan is well -positioned to follow the same model. He noted that some communities will have challenges. Commissioner Sande believes that the communities that have capacity will be working and planning with AEA. She believes that the communities that have capacity issues will focus on building up their general power needs, as well as cruise ship shore power. There were no additional questions. Mr. Thayer commented on another topic that is not included in the Board packet. He discussed there is funding of $60 million for transmission grid upgrades for grid resilience and reliability. Staff was proactive during the legislative session and obtained the federal receipt authority and at least two years' of State match. The application period has been released and the application is due September 30. Notification of an award will occur two months after the application is submitted. Staff is working to complete the application. This will benefit those on the Railbelt. The program will mirror the REF Program criteria and will include an application process, analysis, and technical feasibility. Staff will provide a presentation to the Board if the application is awarded. Mr. Thayer noted that new competitive programs are being announced daily regarding additional IIJA funds. He informed that Amy Adler, former AEA Comptroller and CFO, has been contracted back to be the IIJA Coordinator to assist in the internal management of the IIJA funding and applications. Commissioner Sande commented that Mr. Thayer has been a wonderful resource for the State. She noted that the Agency is clearly positioned and is forward -thinking in their efforts. Commissioner Sande expressed that she is thankful and proud of staff for their service. Mr. Thayer recognized that AEA has assembled a very good team. He noted that two new engineers have been identified and will be hired to assist with owned assets. An Assistant Project Manager vacancy has recently been filled to assist Ms. Alstrom and her team. N. Community Outreach Mr. Thayer informed that many community outreach opportunities have occurred recently. The schedule is provided within the packet. Much attention has been received, especially nationally, regarding Alaska's EV efforts. O. Articles of Interest — Included in packet. Alaska Energy Authority Page 11 of 12 P. Next Regularly Scheduled AEA Board Meeting, Wednesday, September 14, 2022 Mr. Thayer noted that he will attend the next meeting on September 14 via MSTeams, as he will be at the final session of the National Renewable Energy Laboratory Executive Academy. Commissioner Sande advised that she will also attend the September 14 meeting via MSTeams, as the date coincides with the Southeast Conference. 10. BOARD COMMENTS Mr. Eledge complimented and thanked Mr. Thayer for the recent AEA outreach presentation provided at the Chamber of Commerce. Mr. Eledge commented that moose season is approaching. Mr. Fogle expressed appreciation for today's presentations and information. Chair Pruhs thanked Mr. Thayer and staff for their efforts. 11. ADJOURNMENT There being no further business of the Board, the AEA meeting adjourned at 10:13 am. Curtis W. Thayer, Excutive Director / Secretary Alaska Energy Authority Page 12 of 12