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Home My WebLink AboutBradley Lake PMC Meeting-Tues., May 20, 2003 3PLEASE DELIVER TO THE FOLLOWING: Steve Haagenson Joe Griffith Norm Story Wayne Carmony Jim Posey Dave Calvert Ron Saxton Golden Valley Electric Association Chugach Electric Association Homer Electric Association Matanuska Electric Association Anchorage Municipal Light & Power City of Seward Ater Wynne LLP (907) 458-5951 (907) 562-6994 (907) 235-3323 (907) 689-9368 (907) 263-5204 (907) 224-4085 (503) 226-0079 Notification of Bradley Lake Project Management Committee Meeting A regular meeting is scheduled to be held on Tuesday, May 20, 2003, at 10:00 a.m. at the Alaska Industrial Development and Export Authority’s Board Room. Packets for this meeting are scheduled to be sent out this week. Should you not be able to attend in person, directions for connecting to the meeting via phone will also be included in your packet. Please call Shauna at (907) 269-3028 with questions. h:\all\sdean\bradley\mtg notification fax cover.doc * * ¥ Transmission Result Report (MemoryTX) (May.iz. 2003 7:34AM) * * * 1) AIDEAZAEA 2) Date/Time: May.12. 2003 7:29AM File Page No. Mode Destination Pg (s) Result Not Sent 2465 Memory TX 96626994 Praaee OK 919072353323 OK 96899368 OK 92635204 OK 919072244085 OK Reason for error E-1) Hang up or line fail —E.2) Busy —E.3) No answer E.4) No facsimile connection PLEASE DELIVER TO THE FOLLOWING: Steve Haagenson Golden Valley Electric Association (907) 458-5951 Joe Griffith Chugach Electric Association (907) 562-6994 Norm Story Homer Electric Association (907) 235-3323 Wayne Garmony —_—_-Matanuska Electric Association (907) 689-9368 sim Posey Anchorage Municipal Light & Power (907) 263-5204 Dave Calvert Gity of Seward (907) 224-4085 Ron Saxton Ater Wynne LLP (503) 226-0079 P. | Transmissiun Result Report (MemoryTX) ( May.ic. 2003 7:30AM) * * * 1) AIDEA/AEA 2) x x x Date/Time: May.12. 2003 7:29AM File : Page No. Mode Destination Pg (s) Result Not Sent 2466 Memory TX 915032260079 Prom? OK Reason for error E.1) Hang up or line fail —-.2) Busy E.3) No answer E.4) No facsimile connection PLEASE DELIVER TO THE FOLLOWING: Steve Haagenson Golden Valley Electric Association (907) 458-5951 Joe Griffith Chugach Electric Association (907) 562-6994 Norm Story Homer Electric Association (907) 235-3323 Wayne Carmony Matanuska Electric Association (907) 689-9368 Jim Posey Anchorage Municipal Light & Power (907) 263-5204 Dave Calvert City of Seward (907) 224-4085 Ron Saxton Ater Wynne LLP (503) 226-0079 P. | Transmisoiun Result Report (MemoryTX) (May.iz. 2003 7:29AM) * * * ie AIDEA/AEA _* a Date/Time: May.12. 2003 7:28AM File Page No. Mode Destination Pg (s) Result Not Sent 2464 Memory TX 919074585951 P. 2 OK Reason for error E.1) Hangs up or line fail E.2) Busy E.3) No answer E.4) No facsimile connection PLEASE DELIVER TO THE FOLLOWING: Steve Haagenson Golden Valley Electric Association (907) 458-5951 Joe Griffith Chugach Electric Association (907) 562-6994 Norm Story Homer Electric Association (907) 235-3323 Wayne Carmony Matanuska Electric Association (907) 689-9368 Jim Posey Anchorage Municipal Light & Power (907) 263-5204 Dave Calvert Clty of Seward (907) 224-4085 Ron Saxton Ater Wynne LLP (503) 226-0079 Bradley Lake Hydroelectric Project Risk Assessment Scope of Work Proposal The Bradley Lake Project Management Committee (BPMC) is responsible for the operation and management of the Bradley Lake Hydroelectric Project, which is owned by the power output of this project. The participants are Chugach Electric Association, Inc. , Alaska Electric Generation and Transmission Cooperative (AEG&T) — consisting ‘of Matanuska Electric Association, Inc. (Matanuska) and Homer Electric Association,\Inc. (Homer), Golden Valley Electric Association, Inc. (GVEA) and Anchorage Municipal Light and Power (AML&P). The BPMC, as a group, and the individual utility participants, desire an assessment of various types of risks to which they may be exposed through their participation as (1) power purchasers, (2) BPMC members, and (3) AEA project service providers. The Bradley Lake Project Power Sales Agreement (PSA) obligates the AEA to sell and the utilities to purchase the\projects output, creates certain financial obligations (e.g. “take or pay” for certain projéct costs, all annual project operating and maintenance costs and creates and empowers the BPMC as the principal decision maker for project operations and maintenance. (A copy of PSA is attached). As owner of The Project, the AEA provides some risk coverage fer The Project. In addition to the BPMC role, and their individual rights and obligations as power purchasers, some individual utilities have Cantracted to provide services to the project, including for dispatch, on-site operation and maintenance, or repair of project design, management and construction. (Agreements attashed) The Project The Bradley Lake Hydroelectric Project (“the Project”) is at the southern end of the Kenai Peninsula. The Project includes a 610 foot long, 125 foot high concrete-faced and rock filled gravity dam, a 3.5 mile power tunnel and steel- lined penstock. The Project has 126 megawatts of installed capacity that is normally scheduled at 90 megawatts to minimize losses. The Project has an expected average annual output of 376 million-kilowatt hours. Two 20 mile, 115 kilovolt transmission lines connect the Project to a transmission system on the Kenai Peninsula. The Project provides electric power to the most populous areas of Alaska, including the Kenai Peninsula, the Municipality of Anchorage, the Matanuska-Susitna Borough and the Fairbanks Area. Construction of the Project was substantially complete in 1991. The Alaska Energy Authority (“the Authority”) has sold 100% of the capacity of the project to the utility purchasers pursuant to the PSA. ated in south central Alaska Under the Power Sales Agreement, the Power Purchasers are obligated to make payments to the Authority in an aggregate amount sufficient to pay all Annual Project Costs, including costs resulting from the ownership, operation and maintenance of the Project, debt service on all Bonds and any amount required to maintain the reserves established under the Bond Resolution. Each Power Purchaser is unconditionally obligated to pay its respective Percentage Share of the Annual Project Costs notwithstanding any suspension or reduction in the amount of power supplied by the Project. Issues The BPMC desires an assessment of the risks associated with the project and recommendations for addressing those risks specifically, the work product should address: I Maximum Loss Assessment The maximum loss the Purchasers should insure through the BPMC. This analysis should address both physical damage risks and the Purchasers obligations under the PSA. 2s Coverage Review The full spectrum of insurance coverage for the Project currently in place on behalf of the AEA and the BPMC should be identified and explained in the following manner: specific risk, liability of specific parties and recommended coverage. Sufficiency of coverage should be addressed. Bt Purchasing Utility Contractor Risk Recommendations on risk management when services are provided by purchasing utilities (such as current arrangements with Chugach and Homer) to minimize risk to utility providing services and providing adequate protection to BPMC. Recommendations regarding possible BPMC secured risk protection for noninsured risk levels of the contracting utilities. 4. Engineering and Contractor Risk Review adequacy of insurance coverage for Non-Purchasing Utility Contractors, and engineering done for the project for the utility contractors or the AEA. 55 Risk to Physical Assets Review of appropriate levels of insurance to cover debt service, maximum probable loss, catastrophic loss and value of replacement power. 6. Liability Risk Review and recommend coverage levels for personnel, visitor/contractor’s, uninvited visitors (hunters, campers, etc.), the emergency airstrip. 7. Additional Insurance Requirements Research and recommend the need for Builders Risk (particularly with respect to the governor replacement project), supplemental contractor general liability insurance, business interruption coverage, and adequacy of existing property coverage (including deductible). 8. Miscellaneous Issues to be evaluated Additional items to be evaluated in the assessment: - Collective and individual liability of the Purchaser’s. - Market Response (in light of a major repair/overhaul project about to be undertaken) - Other risk mitigation recommendations. Duration of Engagement The Consultant’s engagement should be completed in time for recommendations to be reviewed and decisions made on which will be implemented. This time frame is the next Project insurance coverage renewal time, currently slated for The Consultant should be committed to begin the engagement no later than and complete field work and make their final report available to the Purchaser’s by . Consultant should plan on making a presentation to the Bradley Lake Project Management Committee by Site Visit It is contemplated that the retained consultant will make at least one site visit to the Project in order to survey facilities and potential new exposures. This visit should be scheduled during to insure Project personnel will be available to conduct tours and respond to consultant inquiries [and weather considerations]. Documentation to be provided The Purchaser’s will provide copies of current insurance coverage in place and other agreements for contractual services that may be in force.