HomeMy WebLinkAboutAEA Board Meeting April 2019Alaska Energy Authority
BOARD MEETING MINUTES
Wednesday, April 17, 2019
Anchorage, Alaska
1. CALL TO ORDER
--ALASKA
ENERGY
AUTHORITY
Chair Pruhs called the meeting of the Alaska Energy Authority to order on April 17,
2019 at 10:03 am. A quorum was established.
2. ROLL CALL: BOARD MEMBERS
Members present: Chair Dana Pruhs (Public Member); Julie Anderson (Commissioner
DCCED); Albert Fogle (Public Member); Bill Kendig (Public Member); Greg
Samorajski (Deputy Commissioner DOR); and Julie Sande (Public Member).
3. ROLL CALL: STAFF, PUBLIC
Staff present: Curtis Thayer, Cady Lister, Katie Conway, Kirk Warren, Amy Adler;
Linda Senn, Brenda Applegate; Bryan Carey, Betsy McGregor, Ashton Compton (AEA);
and Stefan Saldanha (Department of Law).
Others present: Sunny Morrison (Attu -Type Depositions); Constance (Connie) Hulbert,
Dean Thompson, Unidentified Attendee (Alaska Electric Light & Power (AEL&P));
Elwood Brehmer (AK Journal of Commerce); Crystal Enkvist (AK Power Association);
Tom Wolf (Denali Commission); Keith Comstock (Juneau Hydropower); Alan Bailey
(Petroleum news)(phone); Bernie Smith; and Nancy Wainwright (public).
4. AGENDA APPROVAL
Mr. Thayer recommended moving Item 7A. to after Item 8. Executive Session. There
was no objection. The agenda was approved without objection, as amended.
5. PUBLIC COMMENTS
Connie Hulbert, President and General Manager AEL&P, commented Resolution 2019-
03 has a stated purpose of authorizing AEA staff to assist with the development of the
Sweetheart Lake project. She noted the resolution goes beyond the scope of its stated
purpose. There are two underlying implications in the body of the resolution. The first
implication is AEA has economically vetted the Sweetheart Lake project. She asked
AEA to consider how adopting this resolution might spur similar requests from other
potential Alaska projects.
Ms. Hulbert noted the second implication is AEL&P is hindering progress of the project.
She reiterated the statements in her letter that AEL&P has spent hundreds of hours of
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REDUCING THE COST OF ENERGY IN ALASKA
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staff time and tens of thousands of dollars working toward this request. The efforts
have intensified recently and AEL&P is not standing in the way of the progress of the
project. Ms. Hulbert informed Juneau Hydropower has control over the timeline of the
required studies and two separate seven -month delays have occurred due to Juneau
Hydropower. AEL&P cannot sign an interconnection agreement nor a transmission
services agreement until Juneau Hydropower completes the third study. Ms. Hulbert
requested the Board refrain from adopting the resolution as written.
Keith Comstock, Chairman and CEO of Juneau Hydropower, expressed support for
Resolution 2019-03. He commented there are two sides to every story, and he would be
happy to provide additional information at the Board's request.
6. PRIOR MINUTES - March 6, 2019
MOTION: A motion was made by Mr. Fogle to approve the Minutes of March 6,
2019. Commissioner Anderson seconded the motion.
The motion was approved without objection.
MOTION: A motion was made by Commissioner Anderson to go into Executive
Session to discuss matters related to Hiilangaay, Battle Creek, Wells Fargo
update, and the Snettisham intertie. Mr. Fogle seconded the motion.
The motion was approved without objection.
Chair Pruhs noted for the record that Julie Sande has a financial interest in the
construction contract and engineering on the Hiilangaay project and will not participate
in the discussion. She will join executive session for Items 8B, and 8C.
8. EXECUTIVE SESSION - Executive Session: 10:10 am
Discuss confidential matters related to:
8A.
Hiilangaay
8B.
Battle Creek
8C.
Wells Fargo Update
The Board reconvened its regular meeting at approximately 11:01 am.
Chair Pruhs advised no formal action was taken on the matters discussed in executive
session.
7. NEW BUSINESS
7A. Resolution No. AEA 2019-03 Snettisham Intertie
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Mr. Thayer noted a cover memo has been provided in the packets explaining the goal is
to reduce the cost of power in Southeast Alaska and increase rural resources. AEA
encourages the completion of a nondiscriminatory interconnection and transmission
service agreement regarding a Snettisham hydro facility, which includes a 44-mile
transmission line with reasonable terms for compensation, operation and maintenance.
The purpose of the resolution is to support the elimination of barriers regarding State
owned assets and allow for Juneau Hydropower to proceed to the next phase of
development. Staff recommends approval, as presented.
Chair Pruhs noted the resolution authorizes staff to assist in the development of the
Sweetheart Lake Hydro project.
MOTION: A motion was made by Mr. Fogle to approve Resolution 2019-03,
relating to the Snettisham intertie. Commissioner Anderson seconded the motion.
Commissioner Anderson made a friendly amendment to the last whereas section
changing the wording from "The Sweetheart Lake Hydroelectric Project would be
beneficial to the people and economy of Southeast Alaska," to "The Sweetheart Lake
Hydroelectric Project could be beneficial to the people and economy of Southeast
Alaska." There was no objection.
A roll call was taken, and the motion to approve Resolution 2019-03, as amended
changing the word "would" to "could", passed unanimously.
9. DIRECTOR COMMENTS
9A. Dashboard & Loan Report
Mr. Thayer reviewed the Dashboard and Loan Report and noted its new format, which
is very similar to AIDEA's format.
Chair Pruhs inquired if Mr. Thayer have discussed with Tom Boutin, CEO AIDEA,
regarding the availability of AIDEA assisting on any loans. Mr. Thayer indicated
discussions have occurred, and informed AIDEA has previously bought some of the loan
portfolio to help with reserves going forward.
Chair Pruhs asked Brenda Applegate, AEA CFO, regarding the possibility of reserving an
amount in the revolving fund that is specifically available for loan transactions for
eligible small communities. Ms. Applegate believes there are no restrictions to
segregating funds for that purpose. Chair Pruhs requested Mr. Thayer work with Ms.
Applegate, Mr. Boutin, and staff to determine a specified amount that could be utilized
for eligible loan funding. There was no objection.
9B. FY20 RPSU / BFU Work Plan
Mr. Thayer informed AEA does not have capital funding for FY 2020 for the RPSU or
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BFU programs. The two-year work plans are currently reliant on past appropriations.
Mr. Thayer requested Mr. Boutin and staff create a new two-year outlook for the
programs. Mr. Thayer reviewed the strategies outlined in the provided handout.
9C. RPSU Eligible Rural Alaska Utilities
Mr. Thayer explained the provided information regarding the RPSU eligible rural Alaska
utilities are split into four categories and includes the priority ranking list of the top 25
eligible communities scheduled for replacement upgrades. Chair Pruhs inquired if staff
has identified which utilities hold maintenance and repair reserve funds. Mr. Thayer
noted that information is in the process of being collected and is not reflected on the
handout. Chair Pruhs asked when the information collection process will be complete.
Mr. Thayer noted the process is expected to be complete by February of 2020, for the
approximately 80 affected communities.
Mr. Thayer informed there are currently three trainers who travel to rural communities
and provide education on equipment operation, maintenance, and financial
management. A larger travel budget has been submitted, in part because of the federal
grants acquired through the Denali Commission requiring visits to communities.
Ms. Anderson recommended Mr. Thayer discuss the issue further with the Director of
Committee and Regional Affairs because of similar shared efforts in rural communities.
Chair Pruhs suggested the graphic reflect the communities by the colors green, yellow,
and red. Green is acceptable. Yellow is a watch list. Red is unacceptable.
9D. VW Update
Mr. Thayer stated AEA is releasing $1.7 million of the $8.1 million for the repower and
replacement of school buses. Applications are due June 30th. Additionally, $800,000
will be released in April to fund public transit bus repower and replacement projects.
There are ongoing discussions with Railbelt utilities and Copper Valley Electric
regarding road charging stations.
9E. Denali Commission Letter on Mertarvik Funding
Mr. Thayer explained there is no available capital funding to provide the acknowledged
and agreed upon $3.5 million for the Alaska Native Tribal Health Consortium. Mr.
Thayer retracted the $3.5 million commitment due to the lack of funding available this
year. Approximately $500,000 from completed projects was utilized to assist in
leveraging additional funding.
9F. Bradley Lake Site Visit
The Bradley Lake site visit to tour the construction of the $37.6-million Battle Creek
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project was scheduled for July 10th and 11th. A public meeting will be noticed and
convened, but will not constitute as a Board meeting because of communication issues
with the remote location.
9G. Clarks Point & Port Heiden Powerhouse Modules Tour
AEA's contractor is assembling the Clarks Point & Port Heiden powerhouse modules.
Tours for AEA Board members, not more than three members at a time, are available in
the beginning of August.
9H. EPA Decision on Diesel Generators
The press release regarding the EPA decision on diesel generators is for informational
purposes. AEA has been working for years to relax some of the EPA standards for
emissions on diesel generators. It appears an exemption has been provided by Andrew
Wheeler, Administrator of the EPA. The public process is ongoing and an AEA
resolution in support of the exemption may be requested.
9I. AEA Project Fact Sheets
Mr. Thayer noted the project fact sheets have been updated.
9J. AEA's Presentation to House Energy Committee
The presentation to the House Energy Committee was provided.
9K. Bradley Lake Operating & Maintenance Agreement
The Bradley Lake Operating & Maintenance Agreement has been completed and signed.
9L. Next Regularly Scheduled AEA Board Meeting Wed. May 22, 2019
The recent Alaska Journal of Commerce story on AEA has been emailed to members.
10. BOARD COMMENTS
Chair Pruhs expressed appreciation to Mr. Thayer, staff, and attendees.
11. ADJOURNMENT
There eing no further business of the Board, the AEA meeting adjourned at 11:29 am.
Curtis Thayer, Executive Director/Secretary
Alaska Energy Authority
ALASKA ENERGY AUTHORITY
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