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HomeMy WebLinkAboutAEA Board Meeting May 2021Alaska Energy Authority BOARD MEETING MINUTES Wednesday, May 19, 2021 Anchorage, Alaska 1. CALL TO ORDER A LAS KA ENERGY AUTHORITY Chair Pruhs called the meeting of the Alaska Energy Authority to order on May 19, 2021 at 8:34 am. A quorum was established. Chair Pruhs advised that today's meeting was scheduled for the length of two hours. 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) (phone); 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. Ms. MacKinnon discussed a bill that is in front of the Legislature that was introduced by the Administration regarding Power Cost Equalization. She reminded the Board that the audit was affected by the sweep clause in the previous legislative session, which caused consternation and additional work for the auditors. Ms. MacKinnon reported that she emailed the Director and inquired about introducing a resolution to support the sweep of the Power Cost Equalization into the Permanent Fund as a whole. She requested to add this proposed resolution as an item to the agenda. There was no objection to adding the proposed resolution to the agenda under New Business 6B. MOTION: A motion was made by Mr. Fogle to add the PCE Sweep into the Permanent Fund as an agenda item. Motion seconded by Mr. Kendig. There was no objection to the motion to amend the agenda. The motion to approve the agenda as amended to include item 6B. passed without objection. A revised agenda, including Item 6B. Proposed Resolution, was provided to Board members. 4. PRIOR MINUTES - April 14, 2021 REDUCING THE COST OF O. O. 813 West Northern Lights Boulevard, Anchorage, Alaska 99503 T 907.771.3000 Toll Free 888.300.8534 F 907.771.3044 MOTION: A motion was made by Mr. Kendig to approve the prior minutes of April 14, 2 02 1. Motion seconded by Mr. Fogle. The motion to approve the minutes of the April 14, 2021 minutes passed without objection. 5. PUBLIC COMMENTS (2 minutes per person) Chair Pruhs requested each person to please state their name and affiliation, if any, and to limit comments to two minutes. Chair Pruhs indicated that any questions during public comments will be given to staff to answer. Questions for the AEA Board and for AEA can also be emailed to publiccomment n akenergyauthority.org. Jennifer Bertolini, AEA, gave instructions to members of the public who are accessing telephonically and want to make a public comment. Bernie Smith requested that the new proposed resolution, Item 613, that the Board has in front of them also be posted on the website so the public may review the information. Chair Pruhs commented that the Board has not seen the proposed resolution information yet and it will be posted as soon as the Board receives it. 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. 6. NEW BUSINESS A. Utility Debt White Paper Curtis Thayer, AEA Executive Director, advised that T.W. Patch, AEA, drafted the Board - requested Utility Debt White Paper. Mr. Thayer invited Mr. Patch to join the discussion. Mr. Thayer noted that the current debt for the utilities for FY19 and part of FY20 is included in the Board packet. The debt for the Chugach merger is not included and the utilities have asked the Regulatory Commission of Alaska (RCA) for an extension request for that information. He informed that a $300 million premium was paid for Municipal Light and Power (ML&P). Chair Pruhs asked if that was debt or cash. Mr. Thayer reported that was debt and is not included in the paperwork provided today. Mr. Patch explained that the Utility Debt White Paper is intended to address the concerns that the utilities can earn a rate of return on debt. It can be used as a guide to how earnings on debt and earnings on equity are treated by regulators in the process of an adjudicated rate proceeding. It is not intended to be a comprehensive treatment of all of the issues involved in a rate case proceeding. Mr. Patch noted that a brief history of utility rate regulation is included in the White Paper. He discussed the provision in the United States Constitution that private property cannot be taken for a public purpose, unless the owner of the property is paid. This same theory comes forward into rate regulation. Alaska Energy Authority Page 2 of 12 Chair Pruhs clarified that his initial question regarded knowing the total debt of the Railbelt, which is approximately $2.5 billion of debt. He discussed that the utilities are allowed to mark up their current debt to pay operating expenses, which provides no incentive to reduce debt. Chair Pruhs discussed that this also silos the utilities from consolidation because of the additional debt load. Mr. Patch agreed and noted that those issues are addressed in the White Paper. He discussed that there is an honest critique among scholars that the classic formula of a cost -of -service study and earning on a rate base incentivizes utilities to take on debt because of the opportunity to increase their earnings on that debt. The statute allows utilities to present the option of an incentivized forward -looking rate base to the RCA, but no Alaska utility has ever sought to do so. Mr. Patch noted that in the Lower 48, the incentivized rate -making has not worked well. Mr. Patch recommended that Board members read the White Paper to better understand the process and the formula used. He is available for additional discussion and explanation. Chair Pruhs commented that he believes the Board and the public need to understand what drives the utilities. A mission of AEA is to decrease utility costs. Chair Pruhs does not believe that putting margin on debt drives utility costs down. He expressed concern regarding the $2.5 billion of debt for 500,000 people which translates into generalized numbers of $5,000 per person or $20,000 per home. Chair Pruhs noted that he does not believe the public understands that when the ML&P and Chugach merger occurred with a $300 million borrowed money premium, that the borrowed money is now being monetized and additional dollars are put on that amount to pay operating expenses. The rate payers of Anchorage are paying for that. Chair Pruhs explained that the money was borrowed and the City took the money and put it in their bank account. He sees this as an "off balance sheet tax". Chair Pruhs commented that he does not believe that the public really understood that the merger included borrowing money at 3%, and then charging the rate payers a premium, possibly 8% on that same money. He does not believe the rate payers would be thrilled about that arrangement. Chair Pruhs commented that he does not see a solution for consolidations or transcos to make the cost more affordable to rate payers, as long as the current process of utility silos remains, which monetizes debt to pay daily operating costs. Vice -Chair Karl expressed appreciation to Mr. Patch for the adept White Paper explaining the process and calculation of rates of return on debt. He echoed Chair Pruhs' sentiments. Vice - Chair Karl believes that 99% of the public does not understand this process, as he noted that he did not understand the process before reading the White Paper and engaging in discussion. Vice -Chair Karl agreed that there is no way to bring all the utilities together to get the best price for the rate payer. Mr. Patch reported that the utilities, except for the City of Seward, are co-ops that are member run and include their own individual boards. All of the utilities have to go before the RCA. Alaska Energy Authority Page 3 of 12 Ms. MacKinnon commented that the discussion is fascinating and she believes that the public has an interest in the topic. She inquired if the Committee should meet as a whole to research if there is a different way to respect the needs of the utilities, while trying to break down some of the barriers that the State, the Legislature, and the people are interested in. Ms. MacKinnon remarked that it is understood that utilities need to make money in order to operate and provide benefits to their customers. AEA's mission is to try to solve some of these problems. She recommended the possibility of the Committee as a whole taking this on as a project and rolling out the issues in a sequential manner to better understand the process. This would include allowing the utilities to present why they think this operating process best serves their customers. Ms. MacKinnon discussed her experiences with the struggles of the smaller utilities in rural Alaska, and the difficulties the State has had in solving the problems. She wondered if the Committee or a portion of the Committee could focus on these issues over the summer and develop ideas or possible solutions to present to the Administration or to the Board. Ms. MacKinnon does not believe that AEA can fix these problems, but that solutions will come from the State, the federal government, or the utilities and consumers. She believes this is a unique moment in time with the right people available to AEA to walk through this process. Chair Pruhs expressed that his initial concern is what brought the issue to the forefront for discussion. His second concern is in the challenge of assimilating the information from all of the utilities due to the silo structure in the Railbelt. Mr. Kendig commented on his early discussions regarding these processes with Chair Pruhs and the reduction of the cost of energy if the utility debt was paid off. Mr. Kendig noted that he would like to keep that discussion on the table. He added that there is federal stimulus money and it is not out of the realm to reduce this debt. Mr. Kendig explained that the next step in the process includes a reduction in the carbon footprint. He suggested that if the debt was paid off and the utilities put up 50% of the savings and created new debt for green projects, this action would potentially reduce energy and reduce the carbon footprint simultaneously. Mr. Kendig is supportive of further discussions regarding these topics. Chair Pruhs agreed that if the utilities' debt was paid off with federal support, the immediate 30-day result to each rate payer would be a reduction in rates, which would be conducive to economic opportunities throughout the state. Mr. Thayer believes that any conversation needs to involve RCA, because they are the statutory regulators of the utilities. He discussed a nuance that he was unaware of before this inquiry that the long-term debt held by utilities contains penalties for early repayment. Mr. Kendig suggested the possibility of overriding the prepayment penalty if the arrangement included paying off one debt and immediately creating another debt for new green projects. Chair Pruhs agreed with Ms. MacKinnon's suggestion to have a concerted discussion so that the policy -makers understand that process. Mr. Kendig expressed support for additional discussions. Ms. MacKinnon noted that she serves for the Commissioner of Revenue as Alaska Energy Authority Page 4 of 12 Chairman of the Alaska Student Loan Corporation. She explained that they are currently going through a process focusing on the indentured contracts and buying back the bonds. The market is favorable now, with interest at the federal level at under 1%. Ms. MacKinnon explained the process, which is in the public record. Chair Pruhs encouraged staff to continue to collect the information from the Railbelt utilities for the ongoing discussions. Chair Pruhs also requested that the debt information from utilities outside of the Railbelt is collected. He suggested that further investigation is necessary to determine ways to assist the approximately 50 independent rural communities who are managing their community's energy in-house. Ms. MacKinnon noted that she has formerly served on the Advisory Board for AEA and previous discussions included possible consolidation of some of the smaller utilities. She explained that there are both territorial and geographical challenges with the smaller utilities. She supports continuing the conversation with RCA or in the format agreed upon by the Board. Chair Pruhs requested Board members provide input as to ways to proceed. Mr. Kendig asked Mr. Thayer to explain the effects on PCE if the utilities were able to reduce their cost per kilowatt hour. Mr. Thayer noted that initially, the PCE would most likely increase. Vice -Chair Karl commented that the current delta for rural communities is approximately from .21 cents to .59 cents. Chair Pruhs inquired regarding Homer Electric (HEA) and what they charge rate payers per kilowatt hour. Vice -Chair Karl noted that the power from Bradley Lake is approximately .04 cents per kilowatt hour. Mr. Thayer noted that HEA charges the second highest amount for energy, approximately .23 cents or .24 cents per kilowatt hour. Chair Pruhs requested additional explanation why the price is so high since the cheapest power in the Railbelt is about 20 air miles away. Mr. Thayer explained that there are contractual obligations as to what each utility can receive from Bradley Lake. The close proximity to the dam does not necessarily increase the amount of energy that they can receive. Mr. Thayer reported that CEA and Golden Valley Electric (GVEA) receive the majority of the rights to the energy. Vice -Chair Karl described discussions that occurred while members of AEA were at Bradley Lake and asked about running their turbine and not taking all of their power at .04 cents. The reasoning given was that the dam was not reliable, even though the dam has only been down four times in its 30-year lifetime. Vice -Chair Karl believes that is bad management. Mr. Thayer noted the conversation was with a person at the dam and was not with management or a person running the co-op. Chair Pruhs added that the discussion included the comments regarding reliability, and that the dam power is the last in the power grid and the first to be cut off the power grid. Vice -Chair Karl agreed and noted that it does not make sense not to use the .04 power. He commented that it has taken over 30 years to address the bottleneck issue on the line. He believes it was irrational that the dam was built knowing that all of the power could not get through the power line. Ms. MacKinnon remarked that part of the issue for Homer is that they have a lower consumer population, which spreads the fixed costs differently. Alaska Energy Authority Page 5 of 12 Mr. Thayer invited Kirk Warren, AEA Director of Engineering and Energy Development, to clarify some of the conditions. Mr. Warren explained that it is a misnomer that Bradley Lake power is last in and that the other portfolio of fuels used by the utilities is first out. He discussed that the utilities have to manage the lake level based on precipitation, estimated demand, and spill mitigation. The utilities have a certain percentage of Bradley Lake energy and a mix of higher cost fuels from their turbines. The utilities' debt composition includes the transmission plant, distribution, and generation costs. Chair Pruhs expressed surprise at the cost of power for Homer because it is geographically closest to both a renewable hydro energy source and a nonrenewable natural gas energy source. He reiterated the difficulties within the silos of the Railbelt that inhibit and make it almost impossible to run efficiently. Chair Pruhs applauded the Legislature for trying to set up a transco and the RCA. He noted that the theoretical water for Bradley Lake has been increased. There is room for another generator, which would replace a natural gas plant. Chair Pruhs wants the utility debt issue brought to the forefront for discussion because it affects a large percentage of the population. He expressed the difficulties in attaining the information and would like for AEA to help facilitate the conversation. Ms. Sande expressed support for continued discussion of this important conversation. She expressed that she previously held incorrect assumptions regarding Homer having less expensive power costs based on its close geographical location to Bradley Lake. Chair Pruhs requested input from the Board and Mr. Thayer about effective ways to proceed. Mr. Thayer suggested that he first reach out to RCA to determine their availability and he will report back to the Board in June or sooner. He informed that staff has anticipated constraints this summer depending on the passage of legislation, particularly regarding a comprehensive energy policy for Alaska. Chair Pruhs asked if this is the juncture at which to inform the Administration and the Legislature regarding these inquiries, with the end goal of bringing the information forward. Mr. Kendig agreed that concerned parties, including the Administration and RCA, need to be made aware of these discussions. Mr. Thayer informed that the RCA is currently very busy with the Electrical Reliability Council. Ms. MacKinnon recommended that Chair Pruhs direct Executive Director Thayer to advise the Administration that in alignment with the mission, AEA has identified a concern for Alaskan consumers. The current utility structure of earning a profit from debt creates no incentive for utilities to reduce debt that would specifically benefit all rate payers. This issue is part of the problem with the utility silo approach to transmission. AEA would like to meet with RCA to discuss the debt issue further to gain a better understanding and to be able to communicate clearly to consumers how debt might be impacting the rate that they are ultimately paying at the utility. AEA is looking for a solution that is in alignment with the mission to lower the energy cost in Alaska. Chair Pruhs agreed to Ms. MacKinnon's recommendation. There was no objection to moving forward as outlined. Alaska Energy Authority Page 6 of 12 B. Proposed Resolution Mr. Thayer reported that the proposed resolution has been posted to the website. Ms. MacKinnon informed that the resolution is a resolution of the Alaska Energy Authority endorsing Senate joint Resolution No. 6. MOTION: A motion was made by Ms. MacKinnon to adopt Resolution 2021-02, Resolution of the Alaska Energy Authority Endorsing Senate joint Resolution No. 6. Motion seconded by Mr. Fogle. Ms. MacKinnon informed that she requested Mr. Thayer and staff to prepare the resolution. The Board members are aware that the different interpretations of Alaska's sweep clause for funds have affected Power Cost Equalization (PCE) and the last audit. In depth discussions have occurred with the State in order to align the financials of AEA and AIDEA and to efficiently communicate between the State's auditors, the legislative auditors, and the Agency's private sector financial preparers. Ms. MacKinnon commented that she has previously worked with Senator Hoffman on PCE legislation. She expressed that her current understanding from watching the press conference is that Senator Hoffman is in favor of constitutional izing the concept of PCE, as well as moving approximately $1 billion from AEA into the Corpus of the Permanent Fund, thus protecting those assets in perpetuity for the people of Alaska. She explained that the PCE formula will be established by the Legislature. Ms. MacKinnon believes that Senate joint Resolution No. 6 provides many benefits. AEA will benefit from the provided financial certainty. Rural Alaskans will benefit by the protection of the PCE concept that the Legislature controls. The value is added to the Permanent Fund, which contributes returns to the bottom line benefitting all Alaskans. Ms. MacKinnon noted that there is the possibility that people have opposing observations that she is unaware of. Chair Pruhs advised that this proposal was fast -tracked within the last week with the support of the Legislature and the Governor. Chair Pruhs expressed support for the positive resolution. He believes it is important that AEA provide consideration of the resolution. Vice -Chair Karl expressed support for the resolution and believes it makes good sense. He feels this provides a way to protect the PCE and provide the long-term viability of the Native population and their villages. Mr. Thayer read Resolution 2021-02, Resolution of the Alaska Energy Authority Endorsing Senate joint Resolution No. 6 into the record; Whereas, The Alaska Energy Authority ("the Authority") is the principal agency administering the Power Cost Equalization (PCE) program; and Whereas, The Authority, along with the Regulatory Commission of Alaska, administers the PCE program created to equalize the cost of electrical power between rural and urban Alaska; and Whereas, The PCE program was established in 1984, as one of the components of a statewide energy plan. In 2000, the Legislature created and seeded the PCE Endowment Alaska Energy Authority Page 7 of 12 Fund to ensure the long-term sustainability of the PCE program. The program serves approximately 81,700 Alaskans in 192 communities largely reliant on diesel fuel for power generation; and Whereas, Funded by the PCE Endowment, the PCE program provides economic and personal certainty to thousands of Alaskans. The current balance of the PCE Endowment Fund is approximately $1.1 billion; and Whereas, Governor Dunleavy's proposal to move the PCE Endowment Fund into the Permanent Fund lays the foundation for a stable energy policy for rural Alaska and assures this important lifeline of rural Alaska enjoys long-term viability; and Whereas, The State has invested billions of dollars in Anchorage, Matanuska-Susitna Valley, and Fairbanks to reduce the cost of energy, and while in rural Alaska, residents do not have those same energy infrastructure opportunities; and Whereas, The PCE program lowers the cost of power for the first 500 kilowatt-hours of electricity used by residential customers, thereby reducing the cost of living in rural Alaska and enhancing the standard of living by making energy more affordable; and Whereas, The Board of Directors of The Authority have carefully considered Senate Joint Resolution 6 as amended by the Governor to include the PCE Endowment in the Corpus of the Permanent Fund; Now therefore be it resolved that the Board of Directors of the Authority endorses the protection of the PCE endowment and its inclusion in the Permanent Fund. Dated in Anchorage, Alaska on May 19, 2021. Chair Pruhs asked if Commissioner Anderson was able to unmute and provide comment. Technical difficulties occurred with the telephonic system. Chair Pruhs requested a brief at - ease to resolve the issues. The issues were resolved and Chair Pruhs gave Commissioner Anderson an opportunity to comment. Commission Anderson expressed support for the resolution. She believes it is a good path forward. A roll call was taken, and the motion to adopt Resolution 2021-02, Resolution of the Alaska Energy Authority Endorsing Senate joint Resolution No. 6 passed unanimously. 7. OLD BUSINESS - NONE 8. DIRECTOR COMMENTS A. Response to Board Questions Mr. Thayer reviewed the included responses to Board questions from the April 14, 2021 meeting. The first question regarded a summary of what jurisdictions, in addition to California, AEA investigated for the EV templates. The second issue regarded the request to provide the Board with copies of the RFA application for the Electric Vehicle Direct Current Fast Charging Network Program, and copies of the RFI and RFQ. The third question regarded the Railbelt utility data, including debts and assets. The fourth request was for staff to Alaska Energy Authority Page 8 of 12 prepare a white paper regarding Railbelt utility debt and the impact on the cost of energy in Alaska. All responses are provided in the Board packet. B. Denali Commission Update Mr. Thayer discussed that the Denali Commission update is included in the Board packet. The process is ongoing to fulfill the role of Federal Co -Chair. The active award funding remains unchanged at close to $34 million. Mr. Thayer informed that the Denali Commission was very impressed with the powerhouse rural assessment work and has put forth $480,000 to partner with AEA for a bulk fuel assessment. C. Rural Update Mr. Thayer discussed that the Rural Update and the Railbelt Update will be recurring at each AEA meeting. He noted that the inventory and assessment is approximately 89% complete, which includes 146 powerhouses. He reiterated that Denali Commission is matching $480,000 for the completion of the bulk fuel assessment. D. Power Project Fund Dashboard and Loan Report Mr. Thayer informed that there are a total of 21 applications. Galena was the most recent funding of approximately $2 million for upgrades to the powerhouse. Baxter Senior Living has paid off their note of approximately $900,000. There is one delinquency of approximately $552.00, but this is not unusual for the smaller community and is expected to become current soon. Chair Pruhs asked if Mr. Thayer sees any potential or unfolding issues in rural Alaska. Mr. Thayer noted that he does not see any potential issues. He discussed that there is federal money available and it is being utilized in rural Alaska. Mr. Thayer reported on the recent court ruling regarding approximately $500,000 for Alaska Native corporations. Mr. Thayer gave the example that Tuluksak has used some of their funding to purchase new bulk fuel tanks. He hopes that other communities will look to provide their resources to their powerhouses and bulk fuel infrastructure. Mr. Thayer discussed that staff engaged in a concerted effort working with the delegation to apply for federal grants and to be included in federal bills that address energy infrastructure upgrades in Alaska, including powerhouses and bulk fuel. A list has been given to the delegation of 71 communities in ranking order in the event additional funding opportunities are realized. E. Electric Vehicles Update (Verbal) Mr. Thayer informed that the process was ongoing during the last meeting of seeking RFPs to utilize the $1 million from the Volkswagen Trust to help fund up to 80% or $80,000 of a charging station. There were 24 applicants, of which 23 are within the corridor from Homer to Fairbanks. However, there are no applicants from the area between Healy and Fairbanks. Alaska Energy Authority Page 9 of 12 The evaluation team is in the process of ranking the current applicants. The plan is to hold back a portion of the funding and to go out with another RFP specifically for the Healy to Fairbanks portion of the corridor. Ms. MacKinnon discussed that one of the public comments previously focused on the complexity of the application for smaller businesses to be able to bring the charging station into their facility. She is happy to hear that there were 24 applicants and those perceived challenges were overcome by many. Ms. MacKinnon asked if a modified version of the proposal could be utilized in the area from Healy to Fairbanks in consideration of the possibility of increased number of smaller businesses along that route. Mr. Thayer explained that the current 24 applicants were scored according to State procurement standards and they have an evaluation committee that is currently reviewing their status. Once an intent to award is made for 10 to 14 of the applicants, there is a protest period, after which he will review the proposals. Chair Pruhs asked if the 24 applicants were all responsive and met the criteria for the RFP. Mr. Thayer indicated that the process is currently ongoing to determine if the applicants are responsive to the RFP. Chair Pruhs requested that after the determinations have been made, that the Board be provided an update to reconcile the public comment regarding the complexity of the application with the results of the applications submitted. Mr. Thayer agreed. He noted there was one application for Tok, which is outside of the corridor and not within this phase. Ms. MacKinnon expressed her understanding as to the reasons staff chose the particular formalized proposal for the charging stations, including adequate parking, sufficient power, and consumer protections. Vice -Chair Karl inquired as to the average cost per station. Mr. Thayer discussed that the assumption is the cost will be up to $100,000 each, and the AEA financing through the Volkswagen Settlement would be 80%. The remaining 20% is matched by the applicant. Chair Pruhs asked if the Board will review any of the proposals. Mr. Thayer informed that all review is conducted at the procurement level. He will provide the details of the proposals to the Board once it becomes publically available. Mr. Thayer noted that there are specific cold weather temperature challenges for the Healy to Fairbanks geographic area, which might be a reason that there were no applications. Vice - Chair Karl noted that GVEA has two charging stations in an area that experiences below 50- degree temperatures. He believes their information could be valuable to others. Ms. MacKinnon asked Mr. Thayer if there is a sequencing plan for the installation of the charging stations to ensure that the first station built is not stranded in the middle of the route. Mr. Thayer indicated that staff will provide the information. Ms. MacKinnon reiterated the importance to ensure there is a deliberate sequencing plan build -out from an endpoint with users. Alaska Energy Authority Page 10 of 12 F. Shovel -Ready Projects Update Mr. Thayer informed that this is a living document. Changes will continue to be updated accordingly as projects phase -up and get closer to being shovel -ready. Ms. Sande inquired as to what date the estimates were updated, in light of the recent increases in construction costs. Mr. Thayer noted that the estimates are as of early April. Ms. Sande requested a brief explanation of the differences between the project levels. Mr. Thayer discussed that Level 1 projects are the closest to being shovel -ready. Level 2 projects are not shovel -ready and require additional work and permitting. Level 3 projects are mainly used as placeholders for communities to watch as they move forward in the process. Ms. Sande asked for an explanation of how the project summaries will be updated to reflect the current and ongoing increases in construction costs, which may affect the project's estimated savings amount. Mr. Thayer explained that the cost estimates of the approximately 200 projects are based on a point in time and are not being updated. The request of the Governor's Office and the Administration is for AEA to identify projects that can be included for federal funding. G. Railbelt / Owned Assets Update Mr. Thayer discussed that the work on the Alaska Intertie includes the LIDAR (Laser Imaging, Detection, and Ranging) study. The work at Bradley Lake includes the Federal Energy Regulatory Commissioner (FERC) five-year project safety inspection and LIDAR for the Soldotna-Quartz Creek transmission line. The work on the Electric Reliability Organization (ERO) consists of ongoing discussions and mediation. Public comments are due to the RCA on June 1st. Mr. Thayer informed that staff found out this morning that one of the surveyors at the Five - Mile Creek project was mauled by a bear and is being airlifted to Anchorage. The injuries are not life -threatening. Mr. Thayer noted that this may delay next month's plan for staff to travel to the site with the surveyors. H. Legislative Update Mr. Thayer reported that staff has participated with the House Labor and Commerce Committee, the House Energy Committee, the House Finance Committee, and the Senate Finance Committee. Staff has responded to questions, which consist of over 100 pages of documents. In addition, AEA staff has been participating in a supportive technical role on the Green Bank bill. 1. Community Outreach Engagement Mr. Thayer indicated that he is working with Alan Weitzner, AIDEA, to coordinate that AEA and AIDEA conduct community outreach together, including outreach to rural communities and outreach with legislators. Alaska Energy Authority Page 11 of 12 J. Articles of Interest - Included in packet. K. Next Regularly Scheduled AEA Board Meeting Wed. June 23, 2021 Mr. Thayer announced that Amy Adler, AEA, is retiring this month. He expressed appreciation for her years of service. Mr. Thayer introduced Dona Keppers, AEA, who will fulfill the role of Chief Financial Officer. He provided her professional background. Chair Pruhs welcomed Ms. Keppers and expressed appreciation to Ms. Adler for her service. Ms. Adler shared some of her post -retirement plans. She commented that she has really enjoyed working for both AEA and AIDEA, and is grateful for the opportunity. 9. BOARD COMMENTS Vice -Chair Karl expressed appreciation to Mr. Thayer and staff for their diligent efforts and being responsive to the Board's request for information. Ms. Sande specifically thanked Mr. Patch for the White Paper and the presentation. Mr. Kendig stated that he is looking forward to the continued discussion on how to reduce the cost of energy, especially within the Railbelt, and engaging the Legislature, the Administration, and RCA. He believes that it is possible to reduce the cost of energy while reducing the carbon footprint. Commissioner Anderson thanked Mr. Thayer and his team for the excellent and efficient meeting and the preparation of the materials. Chair Pruhs expressed appreciation to all staff for the meeting. He thanked Ms. MacKinnon for bringing the resolution to the forefront on behalf of the Administration. 10. ADJOURNMENT There being no further business of the Board, the AEA meeting adjourned at 10:13 am. Curtis Thayer, Executive Director = GoR +Rq�� EAI, 7, Alaska Energy Authority Page 12 of 12