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HomeMy WebLinkAboutBradley Lake PMC Meeting-Thurs., March 18, 2004 2BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES 813 W. Northern Lights Boulevard Anchorage, Alaska Thursday, March 18, 2004 — 10:00 a.m. 1 CALL TO ORDER Chairman Steve Haagenson called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:00 a.m. on Thursday, March 22, 2004, from the Alaska Industrial Development and Export Authority's Board Room, Anchorage, Alaska, to conduct the business of the Committee per the agenda and public notice. 2. ROLL CALL Roll was called by Shauna Howell. The following members were present: Steve Haagenson Golden Valley Electric Association Joe Griffith Chugach Electric Association (teleconference) Bradley Janorschke Homer Electric Association (teleconference) Wayne Carmony Matanuska Electric Association (teleconference) Jim Posey Anchorage Municipal Light & Power Dave Calvert City of Seward A at Art Copoulos p ) Alaska Energy Authority M ww 3. PUBLIC ROLL CALL Shauna Howell, Alaska Energy Authority Brenda Applegate, Alaska Energy Authority Linda MacMillan, Alaska Energy Authority Karl Reiche, Alaska Energy Authority Doug Hall, Anchorage Municipal Light & Power Rick Miller, Anchorage Municipal Light & Power Lee Thibert, Chugach Electric Association (teleconference) Mike Cunningham, Chugach Electric Association (teleconference) John Cooley, Chugach Electric Association Brian Hickey, Chugach Electric Association Don Stead, Homer Electric Association (teleconference) Jim Walker, Matanuska Electric Association (teleconference) Bradley Lake PMC Minutes March 18, 2004 Page 2 of 6 Bob Zacharski, Homer Electric Association (teleconference) Gary Stromberg, Parisena, Stromberg & Company (teleconference) Ron Saxton, AterWynne (teleconference) 4. PUBLIC COMMENT There were no public comments. 5. AGENDA COMMENTS The agenda was changed to the following order under Item 7. The order will be A, F, E, D, C, and B. 6. APPROVAL OF MEETING MINUTES — January 7, 2004 Mr. Posey moved to approve the meeting minutes of January 7, 2004. Seconded by Mr. Calvert. Chair Haagenson noted a change on page 2, change SWAG to estimate. On page 4 of 4, in the second paragraph under Operators Report, the second sentence should read “An ongoing document control effort is ongoing in conjunction with Art’s office to categorize and catalog the drawings and publications associated with Bradley.” A voice vote was taken, and the motion passed unanimously as amended. TA. MEMBER AND ALTERNATE LETTERS Chair Haagenson All members presented a letter stating their representative as well as the alternate. These letters were included in the packets. 7F. ACCEPTANCE OF THE FY03 AUDITED BPMC FINANCIAL STATEMENTS Mr. Stromberg gave a brief overview of the statements. They issued a clean opinion and the statements presented to the BPMC are signed and bound. MOTION #04-4: Mr. Griffith moved to accept the results of the Bradley Lake Project Management Committee Operating and Revenue Funds for Fiscal Year 2003 as presented by Parisena, Stromberg & Company. Seconded by Mr. Posey. A voice vote was taken, and the motion was unanimously approved. 7E. APPROVAL OF AMENDED FY04 0&M BUDGET Cunningham MOTION #04-5: Mr. Posey moved to amend the Fiscal Year 2004 Operating and Capital budget as presented. Seconded by Mr. Griffith. A voice vote was taken and the motion was unanimously approved. 7D. APPROVAL OF FY05 O&M BUDGET Cunningham MOTION #04-6: Mr. Griffith moved to adopt the Fiscal Year 2005 Operating and Capital budget as presented. Seconded by Mr. Posey. Bradley Lake PMC Minutes March 18, 2004 Page 3 of 6 Brenda Applegate and Linda MacMillan of AEA gave an overview of the budget. Art Copoulos noted that what the O&D Committee has proposed is to have contingency money available — a couple of things broke and needed immediate repairs, and we really didn’t have time to go to the BPMC to get the funds to repair them. What we would like in the future, is to have a relatively small contingency fund to deal with the immediate repairs that need to be corrected in the interest of continuing the project operation and safety. What the O&D committee has proposed is basically a three step process: 1) that when something is identified that the O&D Committee will review the request and approve or deny use of the contingency fund; 2) only unbudgeted projects with immediate operating consequences would qualify for consideration; and 3) the O&D Committee would present any activity related to that contingency fund at the next BPMC meeting. Chair Haagenson stated that it’s also wise to get the O&M Committee involved in some of these conditions, because there may be more than one solution. Mr. Carmony stated for the record: “For the same reason as Mr. Zoerb expressed at a previous meeting, we believe that the firm of AterWynne has an inherent conflict of interest and we will be voting against the budget if it includes a $40,000 commitment that would be earmarked for the firm of AterWynne. I’d just like to see it placed in the minutes in the discussion that we believe that AterWynne has this conflict of interest.” Steve Haagenson asked if there is a plan to adequately fund the governor replacement using the R&C fund mechanism, or should we be funding that — what’s the long-term plan for the R&C fund? The number is $553,596, are we depleting the R&C fund or are we planning on using it to do these governor repairs, are we going to get bonding to do that, what’s our plan to do the governor repairs and finance? Linda MacMillan responded that if you look at Schedule D of the FY05 budget packet, we did a cash flow of money going in and out of the R&C fund and where it would leave us based on current plans. She did a recap, based on HEA’s estimates for the governor work on how much should be paid out of the R&C fund and how much should be coming out of the construction fund balance. Mike Cunningham asked that the following be placed into the minutes. “Mr. Chairman, I'd like to commend Brenda and Linda for their work in pulling this budget together and arm wrestling with the committee members on the final numbers. They did a great job.” MOTION #04-7: Mr. Griffith moved to approve the FY05 O&M budget and a second by Mr. Posey. All members voted aye, with the exception of MEA for the reasons stated above. This will be noted in the minutes. 7C. INSURANCE ISSUES Cunningham Chair Haagenson stated that there is an active proposal in the street, which is pushed back a little because of the budget process. We are looking at our insurance. One Bradley Lake PMC Minutes March 18, 2004 Page 4 of 6 concern he had was that the person doing the review didn’t think they had access to the ARECA insurance exchange books. Chair Haagenson would like to see that get resolved in the near future before it comes out. Mr. Cunningham stated that he would talk to them again and see if there has been any progress made in that area. Mr. Saxton asked if there was a deadline for that progress. Mr. Cunningham responded, stating that we have received the preliminary report and the Chairman requested that the Budget Committee review the report and given the deadline on the FY05 budget, we have decided to do the budget work first and are now going to turn our attention to reviewing the preliminary report and will be getting a summary and recommendation to the full BPMC within the next month or so. 7B. REFUND OF PRIOR YEAR BUDGET ADJUSTMENT (continuation/clarification) Chair Haagenson stated that in the minutes last month, is reference that we were going to get clarification from counsel on a form for O&D insurance. Mr. Saxton has provided that. Also, there had been a question about the auditor’s opinion about paying back the money for the Power Sales Agreement and the number that is in the budget is $900,000 and apparently on the audited information it’s about $2 million now. Chair Haagenson also stated the auditor's report says it’s basically $2.13 million refunded per the Power Sales Agreement. In the FY04 budget, there is an analysis of effective amendment of FY04 O&M budget -— the first line says budget effective FYO3 surplus refund and it has a total amount refunded of $903,501. It was forecasted FY03 surplus budgeted used in budget preparation. So, that number is now moved from $900,000 to $2.013 million. Ms. Applegate explained the dollar amount. When we did the original FY04 budget, FY03 wasn’t complete yet. Part of our budget preparation is a projection of where we thought we would be at the end of FY03, and that was the surplus number we rolled forward. Now that FY03 is complete, our audited financials are done, the number was really the $2 million dollar number. Our projections during the FY04 budget preparation, the original budget, were off. The majority of that was due to the R&C fund and us not spending as much as we thought we would out of that. The true surplus that is going to be refunded is the $2 million. Mr. Saxton stated that the most literal reading of the contract if it says at the end of the year you recalculate and return any surplus, is to write a check and return it. It would be taking that overpayment from the proceeding year and applying it to the current year obligation. Once you have finalized determining what that surplus amount is, each utility will state that they want theirs through a check or would rather have it applied to our current years obligation. Bradley Lake PMC Minutes March 18, 2004 Page 5 of 6 Ms. MacMillan responded that a check can be sent; however, the checks you pay goes to a trust account at US Bank. A check on your behalf with your surplus could be sent. Mr. Posey stated that from an accounting standpoint, it probably is cleaner, and it just makes it simpler. It may be more difficult for others to get the money to roll back in, but his auditors are telling him to get a check. Ms. Applegate responded that the FY04 amended budget that we just approved is calculated based on us actually writing that check back to everyone now, which is what we thought we decided at the last meeting. Mr. Saxton stated that there will be different choices by different utilities. Just be on the record that you have authorized the return of the annual adjustment, but that each utility will be notifying AEA how they wish to receive it. Mr. Calvert stated that the City of Seward would like to roll it over and to consider that notification. Ms. MacMillan stated that she will need an email of who wants a rollover and who wants a check. 8A. Committee Reports /Comments Haagenson Martin River: Mr. Copoulos discussed the Martin River application. The license amendment application to FERC was submitted and received approval from the Army Corps. Preliminary concerns were raised regarding the Fish and Game’s concern about closing the airstrip according to Federal air regulations, and subsequent conversations with them indicate that they are okay with what we have proposed. We don’t anticipate any problems getting this amendment approved through the agencies and through FERC, and expect to complete this work as proposed in the amendment and according to the timeline and budget. O&D: Bob Zacharski reported that there had been a battery explosion at the microwave site. A new battery bank is on order as a new charger, and spill clean up should be completed next week. Cable failure happened in late January. They were able to repair it, and will come back with ideas for re-routing that cable so it is more accessible for maintenance purposes. Preventative maintenance tasks are on schedule. They augmented the operations staff at Bradley to get more electrician help at the plant and clean up the outstanding task under the preventative maintenance. Chair Haagenson asked about the SVC training. There is a lot of discussion on the level of training and who is going to be responding and how many people are going to be training on the top and maintain the SVC. Did that get resolved or did the whole thing go into the budget unscathed? Mr. Hickey stated that they have not done major maintenance on the facility since it was installed. There is a series of major maintenance that has come due, and unfortunately because they were both installed at the same time, it all comes due at the same year, Bradley Lake PMC Minutes March 18, 2004 Page 6 of 6 give or take 18 months. They have five relay techs and they all get trained and we have three substation techs and four substation linemen who get trained. They are on a much larger list. Mr. Hall also noted that part of this is for ABB to come up and tell us what we need to look at replacing so we don’t get in a position where we are with the Intertie SVCs. They will tell us where we are obsolete and what we need to be looking at replacing. Operator Report: Bob Zacharski reported that they are at 1,128 in terms of water level. Governor Replacement: Don Stead reported that the hydraulic transient analysis has been complete and is under review and the State is hiring a third-party to review the results. The way it’s stated now, it will need to be increased by 60 seconds from the current 90 seconds. The change is going to require FERC approval. Change order #1 has been issued to VA Tech, so we got the $100,000 discount. Data collection is in progress. Model test design is currently in progress, and the factory acceptance test is projected for July 9" through the 15". New Control Algorithm has been delivered and the conversion is in progress. The outages are at 35 days each, and probably need to be increased to 45 days each, and also should be slipped from March into April in order to accommodate the changes for the jet dividers. The delay is on Change Order #1, once they complete the model and they develop the model test results, they then have to go into design of the new jet dividers and design of the shield and the operating mechanism. That design pushes delivery to the site to April 16", which fits right into the middle of the second outage. In order to fit it up with that schedule for Change Order #1, you actually need to slip the outages back into April so the material will be available for the first unit. 8B. Next Meeting Date The next meeting will be at the call of the Chair. 9. ADJOURNMENT The meeting was adjourned at 11:05 a.m. BY: LEAZ Steve Haagenson, Chairman ATTEST: Aa £ oly, Alaska rgy Authority, Secretary BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MOTION # LISTING MOTION #04-1: Mr. Griffith moved that be it resolved that the BPMC authorize HEA to immediately proceed with contract negotiations with VA Tech to provide the services and equipment as described in their proposal of September 23, 2003, ata cost-not to exceed $1.8 million. A decision to proceed or not to proceed with the work past the modeling phase will be allowed under this contract. The modeling phase is not to exceed $400,000. Proceed to obtain FERC approval of modifications. Seconded by Mr. Posey. A voice vote was taken, and the motion was unanimously approved. (January 7, 2004 meeting.) MOTION #04-2: Mr. Griffith moved that be it resolved that the BPMC requests HEA to enter into a continued employment arrangement with Don Stead in order to retain his knowledge and services for this governor modification project. Terms to be negotiated by HEA and Mr. Stead. Seconded by Mr. Calvert. A voice vote was taken, and the motion was unanimously approved. (January 7, 2004 meeting.) MOTION #04-3: Mr. Griffith motioned to refund the June 2003 balance of $2,013,381.00 in accordance with agreements and approve and bill in accordance with Budget Scenario B and to hold the money and pay out at a later date. Seconded by Mr. Posey. A roll call vote was taken and the motion passed. (January 7, 2004 meeting.) MOTION #04-4: Move to accept the results of the Bradley Lake Project Management Committee Operating and Revenue Funds for Fiscal Year 2003 as presented by Parisena, Stromberg & Company. Motion: Oe: MOTION #04-5: Move to amend the Fiscal Year 2004 Operating and Capital budget as presented. \ 5 /) 7 }\ 5 —— Motion: [Me Ho HY om: bt Coli Aitl. ww U ff a V A pproved MOTION #04-6: Move to adopt the Fiscal Year 2005 Operating and Capital budget as presented. roth Motion: as (n { t+ rte OG: is J | ; UY Av pred as MEA Opposed BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MOTION # LISTING MOTION #04-1: Mr. Griffith moved that be it resolved that the BPMC authorize HEA to immediately proceed with contract negotiations with VA Tech to provide the services and equipment as described in their proposal of September 23, 2003, ata cost not to exceed $1.8 million. A decision to proceed or not to proceed with the work past the modeling phase will be allowed under this contract. The modeling phase is not to exceed $400,000. Proceed to obtain FERC approval of modifications. Seconded by Mr. Posey. A voice vote was taken, and the motion was unanimously approved. (January 7, 2004 meeting.) MOTION #04-2: Mr. Griffith moved that be it resolved that the BPMC requests HEA to enter into a continued employment arrangement with Don Stead in order to retain his knowledge and services for this governor modification project. Terms to be negotiated by HEA and Mr. Stead. Seconded by Mr. Calvert. A voice vote was taken, and the motion was unanimously approved. (January 7, 2004 meeting.) MOTION #04-3: Mr. Griffith motioned to refund the June 2003 balance of $2,013,381.00 in accordance with agreements and approve and bill in accordance with Budget Scenario B and to hold the money and pay out at a later date. Seconded by Mr. Posey. (January 7, 2004 meeting.) H:\ALL\sdean\Bradley Lake PMC Meetings\MOTION NUMBERS\listing.doc . Message Page 1 of 2 Ax Shauna Howell From: Mike Cunningham [Mike_Cunningham @chugachelectric.com] Sent: Monday, March 15, 2004 3:39 PM To: Shauna Howell Subject: RE: Bradley Lake PMC Meeting Ok, let’s see how it plays out. From: Shauna Howell [mailto:SHowell@aidea.org] Sent: Monday, March 15, 2004 3:43 PM To: Mike Cunningham Subject: RE: Bradley Lake PMC Meeting | don't think so. We'll have to wait and see what Steve thinks. If so, that one can be taken care of during the meeting. From: Mike Cunningham [mailto:Mike_Cunningham@chugachelectric.com] Sent: Monday, March 15, 2004 3:35 PM To: Brenda Applegate; Shauna Howell; BZacharski@HomerElectric.com; hfdale@gvea.com; MillerRE@ci.anchorage.ak.us Subject: RE: Bradley Lake PMC Meeting Ok. Good suggestion. Shauna, | don’t think we need a motion on the clarification, do we? From: Brenda Applegate [mailto:bapplegate@aidea.org] Sent: Monday, March 15, 2004 3:32 PM To: Mike Cunningham; Shauna Howell; BZacharski@HomerElectric.com; hfdale@gvea.com; MillerRE@ci.anchorage.ak.us Subject: RE: Bradley Lake PMC Meeting Looks good. | think we should add Operating and Capital budget after "2005" in number 3. Additionally, Shauna has on the agenda for us to obtain clarification on the motion from the last meeting regarding the refund. From: Mike Cunningham [mailto:Mike_Cunningham@chugachelectric.com] Sent: Monday, March 15, 2004 3:15 PM To: Shauna Howell; Brenda Applegate; BZacharski@HomerElectric.com; hfdale@gvea.com; MillerRE@ci.anchorage.ak.us Subject: RE: Bradley Lake PMC Meeting Will these work (having not seen the agenda as yet - working form memory): 1. Move to accept the results of the "Bradley Lake Project Management Committee Operating and Revenue Funds for Fiscal Year 2003" as presented by Parisena, Stromberg and Company. 2. Move to amend the Fiscal Year 2004 Operating and Capital budget as presented. 3/17/2004 Message Page 2 of 2 says 3. Move to adopt the Fiscal Year 2005 as presented. Let me know if those work. Regards, From: Shauna Howell [mailto:SHowell@aidea.org] Sent: Monday, March 15, 2004 2:31 PM To: Mike Cunningham Subject: Bradley Lake PMC Meeting Packets for the PMC meeting are finished and you should be receiving yours sometime this afternoon or early tomorrow morning. | made sure to put a note on the one for you so you would also get a copy of the audited financial statements. As for that section of the meeting, | need a fax or an email of the motions you will be presenting to the PMC for the approval of those items prior to the meeting on Thursday. Thank you. showell @ aidea.org 3/17/2004 Message Page 1 of 1 Shauna Howell From: Mike Cunningham [Mike_Cunningham @ chugachelectric.com] Sent: | Monday, March 15, 2004 3:15 PM To: Shauna Howell; Brenda Applegate; BZacharski@HomerElectric.com; hfdale @ gvea.com; MillerRE @ ci.anchorage.ak.us Subject: RE: Bradley Lake PMC Meeting Will these work (having not seen the agenda as yet - working form memory): 1. Move to accept the results of the "Bradley Lake Project Management Committee Operating and Revenue Funds for Fiscal Year 2003" as presented by Parisena, Stromberg and Company. 2. Move to amend the Fiscal Year 2004 Operating and Capital budget as presented. 3. Move to adopt the Fiscal Year 2005 as presented. Let me know if those work. Regards, From: Shauna Howell [mailto:SHowell@aidea.org] Sent: Monday, March 15, 2004 2:31 PM To: Mike Cunningham Subject: Bradley Lake PMC Meeting Packets for the PMC meeting are finished and you should be receiving yours sometime this afternoon or early tomorrow morning. | made sure to put a note on the one for you so you would also get a copy of the audited financial statements. As for that section of the meeting, | need a fax or an email of the motions you will be presenting to the PMC for the approval of those items prior to the meeting on Thursday. Thank you. showell @ aidea.org 3/17/2004 Shauna Howell From: Ron Saxton [Rls @aterwynne.com] Sent: Tuesday, March 30, 2004 4:19 PM To: Art Copoulos; Brenda Applegate; Linda MacMillan; Shauna Howell; dianne_hillemeyer @ chugachelectric.com; joe_griffith @ chugachelectric.com; PoseyJM @ci.anchorage.ak.us; dcalvert @ cityofseward.net; shh @ gvea.com; reckert@ homerelectric.com; prworrell@matanuska.com Ce: Christine Schlicker; Michelle Detwiler Subject: Bradley Lake EB! AW_241405.D0C (179 KB) Attached is a memo on Bradley Lake reporting requirements. It is in response to some questions from BPMC members. Let me know if further information is needed. “ ATERWYNNEup MEMORANDUM TO: Bradley PMC FROM: Ron Saxton DATE: March 30, 2004 RE: Bradley Bonds Reporting Requirements and FAS 150 Some of you have asked questions on a variety of subjects having to do with the financial operations of the Bradley Lake Project. I have decided to address the issues all together and they are elaborated upon below. Bradley Bonds Reporting Requirements. I have been asked to provide information on the Railbelt utilities obligations to report certain information regarding utility finances and operations under the requirements of the outstanding bonds for the Bradley Lake Hydroelectric Project. I want to take this opportunity to remind everyone of their reporting obligations, make sure everyone is doing what they are supposed to be doing and familiarize those of you who may not already be with the process. It is also to make you aware of recent changes in the law. All of the Bradley purchasers, except Seward, have had reporting obligations since the original bond issue in 1989. The official statement for each bond series lays out the financial reporting requirements for AEA and the Bradley Purchasing Utilities. Purchasing utilities that fall under the reporting requirements as stated in the Continuing Disclosure Agreement (see Official Statement, Power Funding Revenue Bonds, Fourth Series, Bradley Lake Hydroelectric Project, Appendix C) entered into at the time of issuing the Bradley Bonds, are those who, under the Power Sales Agreement have purchased 10% or more of the capacity of the Project. Therefore, ML&P, Chugach, HEA, GVEA and MEA are obligated to make annual disclosure of certain financial information. The requirements for the purchasing utilities (I have not included a summary of the requirements for AEA, but they are somewhat different and are on a different timeline) are briefly summarized as follows: The "Disclosure Representative" for the Purchasers, who is the Chairman of the Bradley PMC (currently Steve Haagenson, GVEA), is required to provide to the "Dissemination Agent" (US Bank) by 15 days prior to the submission due date (Sept. 30) an Annual Report that contains the following information for the previous FY: e Audited financial statements (or, if audited statements are not available, unaudited ones are acceptable). 241405/1/MMD/053844-0000 Bradley PMC March 30, 2004 Page 2 e Updated information per tables listed in the Official Statement, e.g, selected statistics for calendar year; power purchaser’s power requirements; energy loads and resources; and historical operating results. FAS 150 — I was asked to look into whether this new accounting standard affects the accounting practices in place for the Bradley Lake PMC. This new accounting standard requires companies to account for securities that have mandatory redemption dates as debt rather than equity on the balance sheet. The standard was adopted as a result of the Enron scandal. This treatment could have serious repercussions on some companies because among other things, it could cause a company to be in violation of its loan covenants (debt to equity ratios, which in the normal course prevent a company from incurring too much debt).We did a little bit of follow up research and determined that there does not appear to be any additional reporting or accounting burden on the Purchasing Utilities. Furthermore, we believe that any additional reporting burden falls on AEA and their accountants as issuer of the bonds. The only Bradley series with mandatory redemption dates is the Sth series. 241405/1/MMD/053844-0000 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MOTION # LISTING MOTION #04-1: Mr. Griffith moved that be it resolved that the BPMC authorize HEA to immediately proceed with contract negotiations with VA Tech to provide the services and equipment as described in their proposal of September 23, 2003, at a cost not to exceed $1.8 million. A decision to proceed or not to proceed with the work past the modeling phase will be allowed under this contract. The modeling phase is not to exceed $400,000. Proceed to obtain FERC approval of modifications. Seconded by Mr. Posey. A voice vote was taken, and the motion was unanimously approved. (January 7, 2004 meeting.) MOTION #04-2: Mr. Griffith moved that be it resolved that the BPMC requests HEA to enter into a continued employment arrangement with Don Stead in order to retain his knowledge and services for this governor modification project. Terms to be negotiated by HEA and Mr. Stead. Seconded by Mr. Calvert. A voice vote was taken, and the motion was unanimously approved. (January 7, 2004 meeting.) MOTION #04-3: Mr. Griffith motioned to refund the June 2003 balance of $2,013,381.00 in accordance with agreements and approve and bill in accordance with Budget Scenario B and to hold the money and pay out at a later date. Seconded by Mr. Posey. A roll call vote was taken and the motion passed. (January 7, 2004 meeting.) a Ad a yrs ™ tio ; H:\ALL\sdean\Bradley Lake PMC Meetings\MOTION NUMBERS\listing.doc 1. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES 813 W. Northern Lights Boulevard Anchorage, Alaska Thursday, March 18, 2004 — 10:00 a.m. CALL TO ORDER Chairman Steve Haagenson called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:00 a.m. on Thursday, March 22, 2004, from the Alaska Industrial Development and Export Authority’s Board Room, Anchorage, Alaska, to conduct the business of the Committee per the agenda and public notice. 2. Roll was called by Shauna Howell. The following members were present: ROLL CALL Steve Haagenson Golden Valley Electric Association Joe Griffith Chugach Electric Association (teleconference) Bradley Janorschke Homer Electric Association (teleconference) Wayne Carmony Matanuska Electric Association (teleconference) Jim Posey Anchorage Municipal Light & Power Dave Calvert City of Seward Art Copoulos Alaska Energy Authority PUBLIC ROLL CALL Shauna Howell, Alaska Energy Authority Brenda Applegate, Alaska Energy Authority Linda MacMillan, Alaska Energy Authority Karl Reiche, Alaska Energy Authority Doug Hall, Anchorage Municipal Light & Power Rick Miller, Anchorage Municipal Light & Power Lee Thibert, Chugach Electric Association (teleconference) Mike Cunningham, Chugach Electric Association (teleconference) John Cooley, Chugach Electric Association Brian Hickey, Chugach Electric Association Don Stead, Homer Electric Association (teleconference) Jim Walker, Matanuska Electric Association (teleconference) Bob Zacharski, Homer Electric Association (teleconference). \ Gary Stromberg, Parisena, Stromberg & Company (-+e/ecae 0 } Ron Saxton, AterWynne (+s |e reer) S NS 7 4. PUBLIC COMMENT a There were no public comments. 5. AGENDA COMMENTS The agenda was changed to the following order under Item 7. The order will be A, F, E, D, B, and C. 6. APPROVAL OF MEETING MINUTES — January 7, 2004 Mr. Posey moved to approve the meeting minutes of January 7, 2004. Seconded by Mr. Calvert. Chair Haagenson noted a change on page 2, change SWAG to estimate. On page 4 of 4, in the second paragraph under Operators Report, the second sentence should read “An ongoing document control effort is ongoing in conjunction with Art’s office to categorize and catalog the drawings and publications associated with Bradley.” A voice vote was taken, and the motion passed unanimously as amended. 7A. Member and Alternate Letters Chair Haagenson All members presented a letter stating their representative as well as the alternate. These letters were included in the packets. 7F. Acceptance of the FY03 Audited BPMC Financial Stmts. Cunningham Mr. Stromberg gave a brief overview of the statements. They issued a clean opinion and the statements presented to the BPMC are signed and bound. MOTION #04-4: Mr. Griffith moved to accept the results of the Bradley Lake Project Management Committee Operating and Revenue Funds for Fiscal Year 2003 as presented by Parisena, Stromberg & Company. Seconded by Mr. Posey. A voice vote was taken, and the motion was unanimously approved. 7E. Approval of Amended FY04 O&M Budget Cunningham MOTION #04-5: Mr. Posey moved to amend the Fiscal Year 2004 Operating and Capital budget as presented. Seconded by Mr. Griffith. A voice vote was taken and the motion was unanimously approved. 7D. Approval of FY05 O&M Budget Cunningham MOTION #04-6: Mr. Griffith moved to adopt the Fiscal Year 2005 Operating and Capital budget as presented. Seconded by Mr. Posey. Brenda Applegate and Linda MacMillan of AEA gave an overview. Linda MacMillan: | thought perhaps before we go through the details of the actual O&M Operating Budget we could go to Schedule C which lays out the annual contribution we will need for the project and go through the changes of why the annual contribution will go up by approximately $600,000 between FY04 and FY05 — what are the big changes. The big areas of increase that cause things to go up is 1) payback to the R&C Fund, a change there is that we will be spending more money out of the R&C Fund for governor work over the next two years, and 2) in the past, the Committee has been paying back the whole R&C Fund in the subsequent year, but this year that did not happen — they only paid back one- quarter, which is the minimum required to payback. This is bas' on spending a certain amount and then repaying one-quarter oe the next four years. That will be going up each year depend } ~ how much money gets spent on the governor project. That was one big increase. The other significant increase was there needs to be work on relay transmissions, and so that is more of a capital item that they estimated $200,000 to do that in FYO5 for transmission relays. The overall operating budget - we changed presentation a little bit this year so that if you look at the summary it's not summarized exactly the way Brenda did it before because,__, t rather than having the summary be based on who has the contact; | it's more based on what the end result is. As you look at the variation, you are going to be seeing a little of a decrease for HEA and CEA in terms of their routine annual things they do, but under item C, there is increase and that includes one-time projects that KX ‘A and HEA have identified to do. The significant ones in that number for CEA is $200,000 for the condition assessment for staff training for CSVC. HEA also has some ongoing projects that are listed below. If you want to see the detail, the little letters at the top in the summary — correspond with the little letters down below. Any questions? Steve Haagenson: Any questions for Linda? Wayne Carmony: With respect to this $100,000 in contingency, are we saying that the HEA would have the ability to access that on what they determine to be an as-needed basis without having to bring that back to the group? Is that what we’re proposing here? O&D_committee has proposed is to have that contingency money available because we ran into a couple of things this year that - a couple of things broke and needed immediate repairs, and we really didn’t have time to go to the BPMC to get the funds to repair them. What we would like in the future, is to have a relatively small contingency fund to deal with the immediate repairs that need to be corrected in the interest of continuing the project operation and safety. What the O&DyC€ommittee has proposed in this fax was basically a three ste rocess: 1) that when something is identified that the O& glia will review the Art Copoulos: We faxed out an email or emailed it out this morning, and what the | var % request and approve or deny use of the contingency fund and 2) only unbudgeted projects with immediate operating consequences \ would qualify for consideration and 3) the O&D’6ommittee would aN present any activity related to that contingency fund at the next BPMC meeting. sounds like a solid concept, I’m just wondering Ss that since the O& mmittee has to convene also, if because we are talking about no mere than $100,000 and we are tying it down to these contingencies, that before they rise to the level to even qualify of $100,000, should that not just be that HEA would have \ * Wayne Carmony: The concept h the authority to move quickly, make that determination, and then report it, rather then even taking it through the O& ommittee? Jim Posey: For my guys, for something similar, they still need to come one step above the person trying to do the repair, or the group trying to do the repair. | think the O&D can get called on fairly quickly, it doesn’t take a long time for them to make a decision, and they don’t actually meet, they do it by telephone. | think that is a good check and balance for the amount of money we are talking about. Wayne Carmony: Jim, if the operator believed that there was a need here, what would be the difference between just\calling the participants and \ having the operator describe the situati nd having it approved \ in the ordinary fashion? Because we are talking about substituting one bureaucratic process for another? \ Jim Posey: That's probably true, Wayne. But when you come to the size of is equipment, the amount we owe on it, and the amount of Q _ _ my for it, and the complexity of it, having two to five \ S . people talk about a fix is based on their experience and we have a great deal of experience between us - is probably the right way to go. I’ve not been uncomfortable with that. They've broached me on some of the problems and what they did and | second that it’s the right way to go with it. It doesn’t take a long time, unless HEA feels constrained somehow by the process that is there now. Wayne Carmony: | have every confidence that HEA can make a decision up to and including $100,000 without going this route. If they are not interested in pursuing in that direction and feel more comfortable with this, then I’m okay with this. Dave Calvert: We're just talking about a couple of hours to make a decision? | don’t see where that constrains them. \ Steve Haagenson: _| think it’s also wise to get the O&M gommittee involved in some of 4 these conditions anyhow, because there may be more than one solution. Bob Zacharski: We usually call the O&D<cbmmittee to inform them of what’s going on at the project, so this really doesn’t constrain us too badly. Wayne Carmony: Steve Haagenson: Wayne Carmony: Steve Haagenson: Wayne Carmony: Steve Haagenson: Wayne Carmony: Steve Haagenson: Wayne Carmony: Ron Saxton: Steve Haagenson: Ron Saxton: Steve Haagenson: Wayne Carmony: Steve Haagenson: Bob Zacharski: Steve Haagenson: | have one other comment. For the same reason as Mr. Zoerb expressed at a previous meeting, we believe that the firm of AterWynne has an inherent conflict of interest and we will be voting against the budget if it includes a $40,000 commitment that would be earmarked for the firm of AterWynne. So noted. | guess if you want, we can drag out the information that says that they are our counsel, but that we selected them as counsel many years ago and they are still our counsel. I'd like for it to be noted in the minutes — that objection. I'll take that under advisement. Are you telling me that | can’t have it placed in the minutes? | believe the way that Robert’s Rules works, is that you make your vote and I’m not sure you get to declare why or why you didn’t vote certain ways. That is what discussion is all about. I'd just like to see it placed in the minutes in the discussion that we believe that AterWynne has this conflict of interest. This will sound a little bit strange, but I’m going to ask our counsel, which you are objecting to, to answer that question, so | don't know how that will work. Duly noted, Wayne. Thank you. Are you asking me now, Steve? Yes, if you want to answer that right now. Is that the kind of things you would put in minutes? Can you make a vote and then declare your reasoning behind it? Now rather than get caught up in whether they have a formal right or not, I’d just let him put in the minutes what he wants. Okay. No problem, Wayne. Thank you. Any other comments on the budget? | have a couple of questions. On the transmission line relays, which transmission lines are those for? From Bradley Lake to Diamond Ridge to Soldotna, and from Bradley Lake to Soldotna. My question is, is that part of the Bradley Lake Project? Bob Zacharski: Steve Haagenson: Don Stead: Steve Haagenson: Don Stead: Steve Haagenson: Don Stead: Steve Haagenson: Steve Haagenson: Mike Cunningham: Brenda Applegate: Linda MacMillan: Steve Haagenson: Yes, it is. | believe from memory, that from Bradley Lake to Bradley Junction, | believe that HEA built the line from Soldotna to Fritz Creek — so that’s kind of my question. That’s true. If you look back, the transfer trip schemes that were installed that we are replacing under this line item, were installed to support the Bradley Lake project. All we are doing is replacing those transfer trip schemes with more modern relay and we expect the project to pay for it. This is fiber or microwave transfer trip? What is your mechanism for communication? It goes on to the fiber network that we have and was originally was microwave under DIVCOM, but \ And now your fiber releases are included in your future budget? We don’t have to have a fiber release because we provide it’s on the fiber. communications for the project for $90,000 a year. That’s good for me. On the R&C Fund, since we are not paying it back, | guess my question is, is there a plan to adequately fund the governor replacement using the R&C fund mechanism, or should we be funding that — what's the long-term plan for the R&C fund? The number is $553,596, but my question is really not the numbers, it’s more of a philosophical question, are we depleting the R&C fund or are we planning on using it to do these governor repairs, are we going to get bonding to do that, what’s our plan to do the governor repairs and finance? Some funding coming out of the contingency fund — Brenda can you help me out on that one? Sure. If you look at Schedule D of the FY05 budget packet, we did a cash flow of money going in and out of the R&C fund and where it would leave us based on current plans. | did a little recap, based on HEA’s estimates for the governor work how much should be paid out of the R&C fund, how much should be coming out of the construction fund balance. That kind of shows what it looks like right now. Thank you. Any more comments on the FY05 budget? BN Mike Cunningham: Mr. Chairman, I'd like to commend Brenda and Linda for their work in pulling this budget together and arm wrestling with the committee members on the final numbers. They did a great job. Art Copoulos: I'd also like to mention that Linda is going to be taking over a lot of this Bradley budget work from Brenda, and Linda has come up to speed really quick on this and has been a big help to us and the Ga eprmite as well. Steve Haagenson: Is there a move you want to announce? Brenda Applegate: No. We are re-shuffling work and I'll be spending more time on AIDEA. Linda MacMillan: | do the AEA financials statements anyway. Steve Haagenson: Put the thank you in the minutes. Steve Haagenson: We have a motion on the floor to approve the FY05 O&M budget and a second. All in favor say aye — all members voted aye, with the exception of MEA for the reasons stated. That will be noted in the minutes. Steve Haagenson: Item C, Insurance Issues. | talked to Mike Cunningham a little while ago — we have an active proposal in the street, which is pushed back a little because of the budget process. We are looking at our insurance. One concern | have is that the person doing the review didn’t think they had access to the ARECA insurance exchange books. | guess I’d like to see that get resolved in the near future before it comes out. | know there has been discussion about a confidentiality agreement between ARECA insurance exchange and this company, and if they are signing this confidentiality agreement to get access to information to only use it for this evaluation, | don’t see why there would be a problem in signing that. I’d like to see that recommendation that says we can’t verify this information because we can’t get access to the books isn’t really a complete recommendation in my opinion. I'd like to see that resolved. Mike Cunningham: _ |’ll talk to them again Mr. Chairman, and see if there has been any progress made in that area. Steve Haagenson: Okay, | appreciate it. Ron Saxton: Didn't we have a deadline for that progress — has that just been slid, or where are we on that? Steve Haagenson: Item C - Insurance Issues. Mike Cunningham: _ If! could respond to that — we haVe received the preliminary report and the Chairman requested that the budget committee review the \ NZ I\ Steve Haagenson: Dave Calvert: Steve Haagenson: Dave Calvert: Steve Haagenson: Brenda Applegate: report and given the deadline we had on the FY05 budget, we have decided to do the budget work first and now we are going to turn our attention to reviewing the preliminary report and will be getting a summary and recommendation to the full PMC within the next month or so. | have received some preliminary comments and we will be getting those summarized and sent on to the full t committee. Oe ‘Any more discussion on Insurance? Thanks, Mike. Item B, Refund to Prior Year Adjustment and a continuation of the discussion. In the minutes last month, is reference that we were going to get clarification from counsel on that one form for O&D insurance. Ron has provided that. And, also, we had a question about the auditor's opinion about paying back the money for the Power Sales Agreement and the number that is in the budget is like $900,000 and apparently on the audited information it’s about $2 million now. I'd like to open that up for discussion. Mr. Chairman, questio recommends refunding t We approved the auditor’s report, which is that a done deal? | guess there is a couple of‘things. First off, the auditor's report says it’s basically $2.13 million refunded per the Power Sales Agreement so I’m not sure, we’re going to have some constraints on us anyhow. But | believe in the FY04 budget, if you look in your packet, there is an analysis of effective amendment of FY04 O&M budget — the first line in the big block says budget effective FY03 surplus refund and it has a total amount refunded of $903,501. It was forecasted FY03 surplus budgeted used in budget preparation. So, that number is now moved from $900,000 to $2.013 million. That's why | asked that number earlier, | was going to make sure these matched. My question was that we approved this report, which has that note in it. Yes, that’s what it is, that’s an audit. But this number back here says it was used on an estimated number and we may want to direct them to update this page. Mr. Chairman, may | explain that number? When we did the original FY04 budget, FY03 wasn’t complete yet. And so what we would do as part of our budget preparation is a projection of where we thought we would be at the end of FY03, and that was the surplus number we rolled forward. Now that FY03 is complete, our audited financials are done, the number was really the $2 million dollar number. So, our projections during the FY04 budget preparation, the original budget, were off. The majority of that was due to the R&C fund and us not spending as much as we thought we would out of that. The true surplus that is going to be refunded is the $2 million dollar number and in our packets, there is a copy Steve Haagenson: Brenda Applegate: Steve Haagenson: Ron Saxton: Steve Haagenson: Ron Saxton: of Budget Scenario B, if everyone remembers from our last meeting — that has that number on it. This would be the FY04 budget page — there is a schedule. It's basically Schedule B in the top left hand corner, Bradley Lake FY04 amended budget summary and a little box that says assumptions in the bottom left hand corner. That has the $2 million number for the surplus in there. That's what we are actually going through. We are going to refund the $2.013 million. | think we're set. The notion of refund — you still have a couple of options which we have talked about before. There have been comments on the fact that refunds weren’t made in the past in the sense of a check being given out — but with the Bradley Lake project, each of your percentage obligations for the budget remains unchanged year to year. If you are a 10% participant, you are a 10% participant every single year. So, you’re not prejudiced if an expense is pushed or pulled from one year to the other because you are still going to pay 10% of it. You’re options in terms of refunding this — you can clearly decide that you want to close out a year by simply having checks returned to each of the purchasing utilities for your percentage share of the money and that would be consistent with the Power Sales Agreement and there is nothing that stops you from doing that. The way it was done for other years where there were surpluses in the past, was you can also return it to each of you in the sense of voting to simply apply it to next years budget and financially you are in the exact same position and | think you comply with the contract by still returning it in the sense of simply prepaying your obligation the succeeding year. So, while there has been a lot of talk about are you entitled to a refund if there is a surplus, the answer is clearly yes, you are entitled to a refund if there is a surplus. The question of how you get that refund is one that you have some options. Do you want to expand on our options? | think that ML&P's auditors were saying that they would like to see the check. | think there is nothing that stops it. That's the most literal reading of the contract if it says at the end of the year you recalculate and return any surplus, most literal way to return it is to write a check and return it. In the past when this has arisen, there have never been checks written. There have certainly been other years where there were surpluses, and there have never been checks written back that | am aware of. In the past, the group simply decided it would repay it by treating it as a prepayment of the next year. And, in fact, it’s not even the next year, because by the time you get around to calculating this, you are always in the next year. It would be taking that overpayment from the proceeding year and Steve Haagenson: Jim Posey: Steve Haagenson: Ron Saxton: Brenda Applegate: Linda MacMillan: Brenda Applegate: Dave Calvert: Brenda Applegate: Rick Miller: Brenda Applegate: applying it to the current year obligation. There is really not anything that says you couldn't individually choose that however you wanted. It may make it more of a nightmare for the accountants, but nothing really says you couldn't individually decide. It’s like your tax refund — do you want the IRS to send you a check or do you want them to just apply it to your next year’s taxes. You're auditors said they wanted a check right? Yes. We have at least ML&P saying they want the check. | guess the rest of us — how do we decide or how do we notify the accountants of how we want to treat that? | don’t know if anybody wants to speak up in the accounting part of this, if there is an accounting problem then maybe we need to work on everyone being treated the same. If there is not an accounting one, this isn’t really a PMC decision as such, this is that the Power Sales Agreement says each of the purchasing utilities is entitled to this refund, and so | guess that unless the accountants object to it strongly, it’s more a matter of each of you — once you have finalized determining what that surplus amount is, each utility saying we want ours through a check or we would rather have you apply it to our current years obligation. | think | can speak to this from an accounting standpoint — | don’t know that it really matters, because we can cut a check as easily as we can roll a surplus forward in our budget preparation. Or we can send a check, actually the checks you pay goes to a trust account at US Bank. We could send a check on your behalf with your surplus. It's really that we are trying to meet the PMC’s request in getting the funds back. So we can individually make the decision on how we want? It would be easier if everybody could do it the same way, but we could certainly do it either way. Remember a couple months ago when we were looking at these revisions to the ’04 budget, and | am fairly new at all this and looking at it, but there were some mistakes in trying to forecast what the surplus was going to be versus the actual, and Brenda, you said it would be a lot easier to just pay this out. Right. Rick Miller: Jim Posey: Brenda Applegate: Jim Posey: Steve Haagenson: Ron Saxton: Steve Haagenson: Ron Saxton: Dave Calvert: Ron Saxton: Dave Calvert: Jim Posey: Dave Calvert: It was harder for you guys to keep track of the surplus and forecasting what the surplus is going to be in the budget. | think it's cleaner to go ahead and pay it out. | think from an accounting standpoint, it probably is cleaner, and it just makes it simpler. It may be more difficult for others to get the money to roll back in, but when my auditors tell me | need a check, | really need a check. The FY04 amended budget that we just approved is calculated based on us actually writing that check back to everyone now, which is what we thought we decided at the last meeting. | thought we had, but we now know the number. How do we make that happen? recommendation from the PMC? Ron, do we need a You don’t need the PMC to take any action on the refund because you are entitled to that, what you need the PMC to do if you haven't already just done it, is to finalize, formally approve what the amount of the refund is. | think we’ve done that in the audit. That is what the audit declared it to be and that is what we are using. | think we are okay there. If you have finalized what the amount is, then | think it’s just an administrative task for the accountants to return the funds in the way you have requested it. | don’t know whether you have all agreed you want the same thing, or whether you have been persuaded you should all have the same thing or if you want your individual option. If | take a check, it’s going to disappear into the general fund, if | take credit, at least we don’t pay as much. Dave, you are exactly right. You’ve had some others in the past that have been concerned whether you have to go back per RCA purposes and re-compute the rate for the past year as opposed to a credit affecting rates for future years and such. You may each have a different reason for choosing the answer you choose. Jim’s city must work differently than our city. My money stays where it came from. There is no false currency there. You write a check to the City of Seward it goes into the general fund. y Ron Saxton: Steve, it sounds like you are going to have different choices by different utilities, it might be good to just be on the record that you. 7 have authorized the return of the annual adjustment, but that each utility will be notifying AEA how they wish to receive it. Dave Calvert: So who at AEA do we notify? Linda MacMillan: Brenda or me - either one of us. Steve Haagenson: _|s it possible to basically allocate the money and put it in a fund? Linda MacMillan: Or pay it directly to the trust? Steve: Just say it’s yours, and not move it out of the account, but just it’s like an imaginary check? Ron Saxton: How would that be different than just applying it to the following year’s budget? Steve Haagenson: _ It isn’t, but I’m trying to find a way to get Jim’s guys happy there so they are getting — they know the amount of the number, they can see the number, they just don’t get the money and we can keep applying it to Bradley. And Dave’s problem so that it won’t go back into the general fund. Jim Posey: We actually have to have a check to show them that it came in. They would like to see that better. Ron Saxton: What you have here, is that Bradley has been going for whatever it is 10, 12 years now, and there have been surpluses most of those years, and there has never been a check written back that | know about. And so, what you've had is 10 or 12 years of it just rolling forward into the subsequent year and being credited to each utility and their percentage share. For whatever reason the Anchorage auditors have concluded they would like to treat it differently, the cleanest thing is probably to just keep doing it the way you have always done it, but except for Anchorage, they are going to be different, and they are going to get a check. ~ Jim Posey: That works for me, as long as the check comes in, that’s fine. The others want to indicate within 10 days to the accountants that they. would like for it to roll, let them say that that’s rolling. For our audit” \ purposes, we need the check. Dave Calvert: The City of Seward would like to roll it over. Consider that notification. Linda MacMillan: Maybe we could do the wire transfer to US Bank that the utility companies pay each month, we could tell US Bank they need to pay less. Brenda Applegate: _ ll have to think about how to...We’ll have to figure it out. Jim Posey: You'll figure a way. Linda MacMillan: We'll need an email or something of who wants a rollover and who wants a check. Brenda Applegate: Because, as | said in the budget numbers and the contributions that we just approved, is given that you are going to get the cash back, and then give it back to us in the form of an increased monthly contribution. Linda MacMillan: We could just pay your contribution to the Trustee. Steve Haagenson: So when you get your check back that means you have to increase your contribution. Jim Posey: The auditors just wanted it to be clean, only because the number became as large as it has been the last couple of years than it has been in the last 10 or 12 years. Otherwise, it’s a large number for us and there are sticklers. Dave Calvert: Did | hear you say Brenda, that you want an email verifying what each of us wants? Brenda Applegate: That would’ be _— great. bapplegate@aidea.org or Imacmillan @ aidea.org Steve Haagenson: Any other discussion on that? Hearing none, we will move on to Committee Reports and Comments. 8A. Committee Reports /Comments Haagenson Martin River: Mr. Copoulos discussed the Martin River application. We \Y submitted the license amendment application to FERC and received approval from the ®% Army Corps. Preliminary concerns were raised regarding the Fish and Game’s concern about closing the airstrip according to Federal air regulations, and subsequent conversations with them indicate that they are okay with what we have proposed. We don’t anticipate any problems getting this amendment approved through the agencies and through FERC, and expect to complete this work as proposed in the amendment. and according to the timeline and budget. O&D: = -Bob Zacharski reported that there had been a battery A< explosion at the microwave site. A new battery bank is on order as a new charger, and spill clean up should be completed next week. Cable failure happened in late January. Able to repair it, and will come back with ideas for re-routing that cable so it is more accessible for maintenance purposes. Preventative maintenance tasks are on schedule. We augmented the operations staff at Bradley to get more electrician help at the plant and clean up the outstanding task under the preventative maintenance. Chair Haagenson asked about the SVC training. There is a lot of discussion on the level of training and who is going to be responding and how many people are going to be training on the top and maintain the SVC? Did that get resolved or did the whole thing go into the budget unscathed? Brian Hickey stated that they have not done major maintenance on the facility since it was installed. There is a series of major maintenance that has come due, and unfortunately because they were both installed at the same time, it all comes due at the same year, give or take 18 months. We have five relay techs and they all get trained and we have three substation techs and four substation linemen who get trained. They are on a much larger list. Doug Hall also noted that part of this is for ABB to come up and tell us what we need to look at replacing so we don’t get in a position where we are with the Intertie SVCs. They will tell us where we are obsolete and what we need to be looking at replacing. Operator Report: — Bob Zacharski reported that they are at 1,128 in terms of water level. Governor Replacement: Don Stead reported that the hydraulic transient analysis has been complete and is under review and the State is hiring a third-party to review the results. The way it’s stated now, it will need to be increased by 60 seconds from the current 90 seconds. The change is going to require FERC approval. Change order #1 has been issued to VA Tech, so we got the $100,000 discount. Data collection is in progress. Model test design is currently in progress, and the factory acceptance test is projected for July 9" through the 15". New Control Algorithm has been delivered and the conversion is in progress. The outages are at 35 days each, and probably need to be increased to 45 days each, and also should be slipped from March into April in order to accommodate the changes for the jet dividers. The delay is on Change Order #1, once they complete the model and they develop the model test results, they then have to go into design of the new jet dividers and design of the shield and the operating mechanism. That design pushes delivery to the site to April 16", which fits right into the middle of the second outage. In order to fit it up with that schedule for Change Order #1, you actually need to slip the outages back into April so the material will be available for the first unit. 8B. Next Meeting Date The next meeting will be at the call of the Chair. 9. ADJOURNMENT The meeting was adjourned at 11:00 a.m. BY: Steve Haagenson, Chairman ATTEST: Alaska Energy Authority, Secretary Alaska Industrial Development and Export At AIDEAW/A Alaska Energy Authority BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING AGENDA Thursday, March 18, 2004, 10:00 a.m. (Via electronic media at AIDEA/AEA — 813 W. Northern Lights Boulevard) (Corner of Arctic and Northern Lights Boulevard) y ROLL CALL (for Committee roe CALL TO ORDER + Haagenson PUBLIC ROLL CALL (for all others present) -_ PUBLIC COMMENT . ~~ AGENDA COMMENTS ~~ ai fgets APPROVAL OF MEETING MINUTES January 7, 2004 2.04 NEW BUSINESS ZZ Capp = A. / Member and Alternate Letters — Refund of prior year budget adjustment (continuation / clarification from last meeting) Insurance Issues Approval of FY05 O&M Budget Cunningham . Approval of Amended FY04 O&M Budget Cunningham F. Acceptance of the FY03 Audited BPMC Financial Statements Stromberg COMMITTEE REPORTS / COMMENTS A. Operators Report B. Next Meeting Date Haagenson ADJOURNMENT 813 West Northern Lights Boulevard * Anchorage, Alaska 99503 907 / 269-3000 * FAX 907 / 269-3044 * Toll Free (ALASKA ONLY) 888 / 300-8534 * www.aidea.org Bradley Lake PROJECT MANAGEMENT COMMITTEE MEETING a - Varck- Jd. 2 OOY (Date) (Location) PLEASE SIGN IN COorw REPRESENTING AEA oe ae a | pea AEA NSN SSS 10 11 12 13) 14 1S 16 17 18 19 20 21 22 92Q2\IT9884 i Shauna Howell From: Zacharski, Bob [BZacharski@ HomerElectric.com] Sent: Wednesday, March 17, 2004 1:25 PM : Bilas avert To: Shauna Howell / dd tion eI) P Subject: FW: Use if Contingency Fund rectd 3/1/04 > ----- Original Message----- > From: Zacharski, Bob > Sent: Tuesday, March 16, 2004 9:23 AM > To: Art Copoulos (E-mail); Cooley, John (E-mail); Doug Hall (E-mail); Henri Dale (E- mail); Stead, Donald (Don) (E-mail) > Subject: Use if Contingency Fund > > Gentlemen, > Please review the draft for the approval and use of the $100k contingency fund as presented to the budget committee. > > a) O&D will review project requests and approve or deny use of the contingency fund > 2) Only unbudgeted projects with immediate operating consequences will: qualify for consideration > a) Fund activity will be presented at each BPMC meeting > > Please call with any questions. > Bob @SENT BY: MEA ADMIN & HR; ) Matanuska Electric Association, Inc. P.O. Box 2929 Palmer, Alaska 99645-2929 Telephone: (907) 745-3231 Fax: (907) 745-9328 March 17, 2004 BPMC Representatives AIDEA/AEA 813 W. Northern Lights Bivd. Anchorage, AK 99503-6690 Re: BPMC Representation Dear BPMC Representatives: 1 am the Bradley Lake Hydroelectric Project Management Committee (BPMC) representative for Matanuska Electric Association, Inc. and Donald W. Zoerb is my alternate. Sincerely, 907 761 9349; Wayne D. Carmony General Manager om MyCocunienlyiGM wilfion MamngandL ctters\2004\05. 17,043 PML.Represecnstey MAR-17-04 10:37AM; PAGE 2/2 Shauna Howell From: Zacharski, Bob [BZacharski @ HomerElectric.com] Sent: Wednesday, March 17, 2004 1:25 PM ; To: Shauna Howell Add tion, to pase Subject: FW: Use if Contingency Fund £ J vecid 3f l 4: of | > ----- Original Message----- > From: Zacharski, Bob > Sent: Tuesday, March 16, 2004 9:23 AM > To: Art Copoulos (E-mail); Cooley, John (E-mail); Doug Hall (E-mail); Henri Dale (E- mail); Stead, Donald (Don) (E-mail) > Subject: Use if Contingency Fund bd > Gentlemen, > Please review the draft for the approval and use of the $100k contingency fund as presented to the budget committee. > > 1) O&D will review project requests and approve or deny use of the contingency fund > 2}) Only unbudgeted projects with immediate operating consequences will qualify for consideration > 3) Fund activity will be presented at each BPMC meeting > > Please call with any questions. > Bob AENT BY: MEA ADMIN & HR; Zz Matanuska Electric Association, Inc. P.O. Box 2929 Palmer, Alaska 99645-2929 Telephone: (907) 745-3231 Fax: (907) 745-9328 March 17, 2004 BPMC Representatives AIDEA/AEA 813 W. Northern Lights Bivd. Anchorage, AK 99503-6690 Re: BPMC Representation Dear BPMC Representatives: ! am the Bradley Lake Hydroelectric Project Management Committee (BPMC) representative for Matanuska Electric Association, inc. and Donald W. Zoerb is my alternate. Sincerely, 907 761 9349; Wayne D. Carmony General Manager om MyLouuniein\Gi¥ WOifion\MemasandLctters\2004\09.17,04BPMC.Representyliv en MAR-17-04 10:37AM; PAGE 2/2 Shauna Howell From: Zacharski, Bob [BZacharski@ HomerElectric.com] Sent: Wednesday, March 17, 2004 1:25 PM 4 To: Shauna Howell L PI de to pater Subject: FW: Use if Contingency Fund ae Vecid 190. > ----- Original Message----- > From: Zacharski, Bob > Sent: Tuesday, March 16, 2004 9:23 AM > To: Art Copoulos (E-mail); Cooley, John (E-mail); Doug Hall (E-mail); Henri Dale (E- mail); Stead, Donald (Don) (E-mail) > Subject: Use if Contingency Fund > > Gentlemen, > Please review the draft for the approval and use of the $100k contingency fund as presented to the budget committee. > > 1) O&D will review project requests and approve or deny use of the contingency fund > 2) Only unbudgeted projects with immediate operating consequences will: qualify for consideration > 3) Fund activity will be presented at each BPMC meeting > > Please call with any questions. > Bob ‘ SENT BY: MEA ADMIN & HR; ZS Matanuska Electric Association, Inc. P.O. Box 2929 Palmer, Alaska 99645-2929 Telephone: (907) 745-3231 Fax: (907) 745-9328 March 17, 2004 BPMC Representatives AIDEA/AEA 813 W. Norther Lights Bivd. Anchorage, AK 99503-6690 Re: BPMC Representation Dear BPMC Representatives: ! am the Bradley Lake Hydroelectric Project Management Committee (BPMC) representative for Matanuska Electric Association, inc. and Donald W. Zoerb is my alternate. Sincerely, 907 761 9349; Wayne D. Carmony General Manager tom MyDowurneriy\Gid sitios MemngandL ctters\2004\09. 17,04 PMC. Represeintvley ou MAR-17-04 10:37AM; PAGE 2/2 Shauna Howell From: Zacharski, Bob [BZacharski@ HomerElectric.com] Sent: Wednesday, March 17, 2004 1:25 PM fe To: Shauna Howell Add a to pata Subject: FW: Use if Contingency Fund ot vectd 39/4. > ----- Original Message----- > From: Zacharski, Bob > Sent: Tuesday, March 16, 2004 9:23 AM > To: Art Copoulos (E-mail); Cooley, John (E-mail); Doug Hall (E-mail); Henri Dale (E- mail); Stead, Donald (Don) (E-mail) > Subject: Use if Contingency Fund > > Gentlemen, > Please review the draft for the approval and use of the $100k contingency fund as presented to the budget committee. > > 1) O&D will review project requests and approve or deny use of the contingency fund > 2) Only unbudgeted projects with immediate operating consequences will: qualify for consideration > 3) Fund activity will be presented at each BPMC meeting = > Please call with any questions. > Bob ENT BY: MEA ADMIN & HR; ZS Matanuska Electric Association, Inc. P.O. Box 2929 Palmer, Alaska 99645-2929 Telephone: (907) 745-3231 Fax: (907) 745-9328 March 17, 2004 BPMC Representatives AIDEA/AEA 813 W. Northern Lights Bivd. Anchorage, AK 99503-6690 Re: BPMC Representation Dear BPMC Representatives: ! am the Bradley Lake Hydroelectric Project Management Committee (BPMC) representative for Matanuska Electric Association, inc. and Donald W. Zoerb is my alternate. Sincerely, 907 761 9349; Wayne D. Carmony General Manager um MyBowanwciiGl yOlhion\Memnzandl ctters\2004\09.17,.048PMC.Represectsliy ee MAR-17-04 10:37AM; PAGE 2/2 Shauna Howell From: Zacharski, Bob [BZacharski@ HomerElectric.com] Sent: Wednesday, March 17, 2004 1:25 PM =e To: Shauna Howell A ddit — to pater Subject: FW: Use if Contingency Fund | ved For. > ----- Original Message----- > From: Zacharski, Bob > Sent: Tuesday, March 16, 2004 9:23 AM > To: Art Copoulos (E-mail); Cooley, John (E-mail); Doug Hall (E-mail); Henri Dale (E- mail); Stead, Donald (Don) (E-mail) > Subject: Use if Contingency Fund > > Gentlemen, > Please review the draft for the approval and use of the $100k contingency fund as presented to the budget committee. > = ) O&D will review project requests and approve or deny use of the contingency fund > 2) Only unbudgeted projects with immediate operating consequences will- qualify for consideration > 3) Fund activity will be presented at each BPMC meeting > > Please call with any questions. > Bob “ ' SENT BY: MEA. ADMIN & HR; Q) Matanuska Electric Association, Inc. P.O. Box 2929 Palmer, Alaska 99645-2929 Telephone: (907) 745-3231 Fax: (907) 745-9328 March 17, 2004 BPMC Representatives AIDEA/AEA 813 W. Northern Lights Bivd. Anchorage, AK 99503-6690 Re: BPMC Representation Dear BPMC Representatives: ! am the Bradley Lake Hydroelectric Project Management Committee (BPMC) representative for Matanuska Electric Association, inc. and Donald W. Zoerb is my alternate. Sincerely, 907 761 9349; Wayne D. Carmony General Manager um MyBocuniw tyiGh yOlfion\MemazandLctters\2004\09.17,CA PMC. Represerttry MAR-17-04 10:37AM; PAGE 2/2 Shauna Howell From: Zacharski, Bob [BZacharski@ HomerElectric.com] Sent: Wednesday, March 17, 2004 1:25 PM To: Shauna Howell Addit ane to pacer Subject: FW: Use if Contingency Fund > ----- Original Message----- > From: Zacharski, Bob > Sent: Tuesday, March 16, 2004 9:23 AM > To: Art Copoulos (E-mail); Cooley, John (E-mail); Doug Hall (E-mail); Henri Dale (E- mail); Stead, Donald (Don) (E-mail) > Subject: Use if Contingency Fund > > Gentlemen, > Please review the draft for the approval and use of the $100k contingency fund as presented to the budget committee. > > 1) O&D will review project requests and approve or deny use of the contingency fund S 2) Only unbudgeted projects with immediate operating consequences will: qualify for consideration > 3) Fund activity will be presented at each BPMC meeting > > Please call with any questions. > Bob SENT BY: MEA ADMIN & HR; a Matanuska Electric Association, Inc. P.O. Box 2929 Palmer, Alaska 99645-2929 Telephone: (907) 745-3231 Fax: (907) 745-9328 March 17, 2004 BPMC Representatives AIDEA/AEA 813 W. Northem Lights Bivd. Anchorage, AK 99503-6690 Re: BPMC Representation Dear BPMC Representatives: ! am the Bradley Lake Hydroelectric Project Management Committee (BPMC) representative for Matanuska Electric Association, ‘inc. and Donald W. Zoerb is my alternate. Sincerely, 807 761 9349; Wayne D. Carmony General Manager Lam MyGouuneniviGl xOitfion\MamasandLctters\200409.17.043PMU.Represertulrv ee MAR-17-04 10:37AM; PAGE 2/2 Shauna Howell From: Zacharski, Bob [BZacharski @ HomerElectric.com] Sent: Wednesday, March 17, 2004 1:25 PM i. To: Shauna Howell Add hae to pasar Subject: FW: Use if Contingency Fund ut vectd 3 l +f of > sooo Original Message----- > From: Zacharski, Bob > Sent: Tuesday, March 16, 2004 9:23 AM > To: Art Copoulos (E-mail); Cooley, John (E-mail); Doug Hall (E-mail); Henri Dale (E- mail); Stead, Donald (Don) (E-mail) > Subject: Use if Contingency Fund > > Gentlemen, > Please review the draft for the approval and use of the $100k contingency fund as presented to the budget committee. > = 1) O&D will review project requests and approve or deny use of the contingency fund > 2) Only unbudgeted projects with immediate operating consequences will qualify for consideration > 3) Fund activity will be presented at each BPMC meeting > > Please call with any questions. > Bob SENT BY: MEA ADMIN & HR; Q) Matanuska Electric Association, Inc. P.O. Box 2929 Palmer, Alaska 99645-2929 Telephone: (907) 745-3231 Fax: (907) 745-9328 March 17, 2004 BPMC Representatives AIDEA/AEA 813 W. Northem Lights Bivd. Anchorage, AK 99503-6690 Re: BPMC Representation Dear BPMC Representatives: ! am the Bradley Lake Hydroelectric Project Management Committee (BPMC) representative for Matanuska Electric Association, ‘inc. and Donald W. Zoerb is my alternate. Sincerely, 907 761 9349; Wayne D. Carmony General Manager Lom MyDouanecnaGh wOilfion\ Memacendl ctters\2004\00.17. ChE PMC. Represents es MAR -17-04 10:37AM; PAGE 2/2 Shauna Howell From: Zacharski, Bob [BZacharski @ HomerElectric.com] Sent: Wednesday, March 17, 2004 1:25 PM + To: Shauna Howell Add ition to pacer tj oy Subject: FW: Use if Contingency Fund } vectd 3/19/04 > ----- Original Message----- > From: Zacharski, Bob > Sent: Tuesday, March 16, 2004 9:23 AM > To: Art Copoulos (E-mail); Cooley, John (E-mail); Doug Hall (E-mail); Henri Dale (E- mail); Stead, Donald (Don) (E-mail) > Subject: Use if Contingency Fund @ > Gentlemen, > Please review the draft for the approval and use of the $100k contingency fund as presented to the budget committee. > > 1) O0&D will review project requests and approve or deny use of the contingency fund > 2) Only unbudgeted projects with immediate operating consequences will: qualify for consideration > 3) Fund activity will be presented at each BPMC meeting - > Please call with any questions. > Bob SENT BY: MEA ADMIN & HR; Z Matanuska Electric Association, Inc. P.O. Box 2929 Palmer, Alaska 99645-2929 Telephone: (907) 745-3231 Fax: (907) 745-9328 March 17, 2004 BPMC Representatives AIDEA/AEA 813 W. Norther Lights Bivd. Anchorage, AK 99503-6690 Re: BPMC Representation Dear BPMC Representatives: ! am the Bradley Lake Hydroelectric Project Management Committee (BPMC) representative for Matanuska Electric Association, inc. and Donald W. Zoerb is my alternate. Sincerely, 907 761 9349; Wayne D. Carmony General Manager om MyDowaweriviGh ¥Oifon\ Memacandlctters\2008\09.17.CASPMC.Representytry MAR-17-04 10:37AM; PAGE 2/2 Main Office (907) 224-4050 Police (907) 224-3338 Harbor (907) 224-3138 Fire (907) 224-3445 Fax (907) 224-4038 CITY OF SEWARD PO. BOX 167 SEWARD, ALASKA 99664-0167 eeo0eee March 16, 2004 Steve Haagenson, Chairman Bradley Lake Project Management Committee P.O. Box 71249 Fairbanks, Alaska 99707-1249 Dear Mr. Haagenson: This will confirm that the representative for the City of Seward on the Bradley Lake Project Management Committee will be Dave Calvert, Manager of the Electric Department. The alternate will be Rick Gifford, Assistant City Manager. Singérely, Phil Shealy City Manager ss Dave Calvert Rick Gifford Main Office (907) 224-4050 Police (907) 224-3338 Harbor (907) 224-3138 Fire (907) 224-3445 Fax (907) 224-4038 CITY OF SEWARD PO. BOX 167 iEWARD, ALASKA 99664-0167 March 16, 2004 Steve Haagenson, Chairman Bradley Lake Project Management Committee P.O. Box 71249 Fairbanks, Alaska 99707-1249 Dear Mr. Haagenson: This will confirm that the representative for the City of Seward on the Bradley Lake Project Management Committee will be Dave Calvert, Manager of the Electric Department. The alternate will be Rick Gifford, Assistant City Manager. ye Phil Shealy | City Manager (ole Dave Calvert Rick Gifford Main Office (907) 224-4050 Police (907) 224-3338 Harbor (907) 224-3138 Fire (907) 224-3445 Fax (907) 224-4038 CITY OF SEWARD PO. BOX 167 SEWARD, ALASKA 99664-0167 eeee0ee March 16, 2004 Steve Haagenson, Chairman Bradley Lake Project Management Committee P.O. Box 71249 Fairbanks, Alaska 99707-1249 Dear Mr. Haagenson: This will confirm that the representative for the City of Seward on the Bradley Lake Project Management Committee will be Dave Calvert, Manager of the Electric Department. The alternate will be Rick Gifford, Assistant City Manager. “ye Phil Shealy | City Manager pe Dave Calvert Rick Gifford © Main Office (907) 224-4050 riya Loci ® Police (907) 224-3338 = ie © Harbor (907) 224-3138 SEWARD, ALASKA 99664-0167 © Fire (007) 224-8445 © Fax (907) 224-4038 March 16, 2004 Steve Haagenson, Chairman Bradley Lake Project Management Committee P.O. Box 71249 Fairbanks, Alaska 99707-1249 Dear Mr. Haagenson: This will confirm that the representative for the City of Seward on the Bradley Lake Project Management Committee will be Dave Calvert, Manager of the Electric Department. The alternate will be Rick Gifford, Assistant City Manager. a leg Phil Shealy City Manager CG: Dave Calvert Rick Gifford Main Office (907) 224-4050 Police (907) 224-3338 Harbor (907) 224-3138 Fire (907) 224-3445 Fax (907) 224-4038 CITY OF SEWARD PO. BOX 167 SEWARD, ALASKA 99664-0167 e@eeee0ee March 16, 2004 Steve Haagenson, Chairman Bradley Lake Project Management Committee P.O. Box 71249 Fairbanks, Alaska 99707-1249 Dear Mr. Haagenson: This will confirm that the representative for the City of Seward on the Bradley Lake Project Management Committee will be Dave Calvert, Manager of the Electric Department. The alternate will be Rick Gifford, Assistant City Manager. Sincfrely, Phil Shealy City Manager cc: Dave Calvert Rick Gifford BRADLEY PMC VOTING DATE: (G/ R00, 4a AD) Agenda Item No. Roll Calf we: a a ees CITY OF SEWARD 01% — C MATANUSKA ELEC ASSOC 14% wi L CHUGACH ELEC ASSOC 30% Pra HOMER ELEC ASSOC 12% of qq GOLDEN VAL ELEC ASSOC 17% we | MUNI LIGHT & POWER 26% [Ww] 4] ALASKA ENERGY AUTHORITY ne cc ag A=4+ OVER 51% B=AEACONCUR With A C = UNANIMOUS D= MAJORITY VOTING METHOD A: Requiring four yeas with 51% of utilities, with no AEA vote: 1) Procedures for scheduling, production and dispatch of project power. 2) Establishment of procedures for use of each purchaser's water allocation (AEA assent required for license requirements). 3) Selection among alternative methods that do not involve AEA for funding required project work. VOTING METHOD B: Requiring 4 yeas with 51% of utilities and AEA concurrence: 1) Arranging operation and maintenance of project. 2) Adoption of budget of annual project costs. VOTE(93Q3/BC5272) 3) Establishment of FY estimated annual payment obligation and schedule of each purchaser. 4) Determination of annual project costs after each FY. 5) Evaluation of necessity for and scheduling of required project work. 6) Determination of appropriate amount of insurance. 7) Adoption of additional minimum funding amounts for renewal and contingency reserve fund above that required by bond resolution. 8) Selection among alternate methods that involve AEA for funding required project work. 9) Adoption or amendment of procedural committee rules (except dispute resolution). 10) Adoption of project maintenance schedules. 11) 12) 13) 14) 15) Determination of rules, procedures and accounts necessary to manage project when no bonds outstanding. Evaluation and approval of optional project work and compensation for such work. Application of insurance claims proceeds not governed by bond resolution. Approval of procedures and any individual utility agreements relating to electric power reserves for project. Approval of consultants. VOTING METHOD C: Unanimous vote by all (including AEA) VOTING METHOD D: Majority vote (including AEA) Election of Officers DATE: BRADLEY PMC VOTING Agenda Item No. YES NO ABS YES NO ABS YES NO ABS CITY OF SEWARD 01% | MATANUSKA ELEC ASSOC. — 14% [| [ Lod fe CHUGACH ELEC ASSOC 30% | HOMER ELEC ASSOC 12% GOLDEN VAL ELEC ASSOC 17% | MUNI LIGHT & POWER 26% Pt ALASKA ENERGY AUTHORITY ] [ A=4+ OVER 51% B= AEA CONCUR With A C = UNANIMOUS D= MAJORITY VOTING METHOD A: 3) Establishment of FY estimated annual 11) corneas ianeuahegreseaaasend oad — Requiring four yeas with 51% of utilities, with no AEA vote: 1) Procedures for scheduling, production and dispatch of project power. 2) Establishment of procedures for use of each purchaser's water allocation (AEA assent required for license requirements). 3) Selection among alternative methods that do not involve AEA for funding required project work. VOTING METHOD B: Requiring 4 yeas with 51% of utilities and AEA concurrence: 1) Arranging operation and maintenance of project. 2) Adoption of budget of annual project costs. VOTE(93Q3/BC5272) 4) 5) 6) 7) 8) 9) payment obligation and schedule of each purchaser. Determination of annual project costs after each FY. Evaluation of necessity for and scheduling of required project work. Determination of appropriate amount of insurance. Adoption of additional minimum funding amounts for renewal and contingency reserve fund above that required by bond resolution. Selection among alternate methods that involve AEA for funding required project work. Adoption or amendment of procedural committee rules (except dispute resolution). 10) Adoption of project maintenance schedules. no bonds outstanding. 12) Evaluation and approval of optional project work and compensation for such work. 13) Application of insurance claims proceeds not governed by bond resolution. 14) Approval of procedures and any individual utility agreements relating to electric power reserves for project. 15) Approval of consultants. VOTING METHOD C: Unanimous vote by all (including AEA) VOTING METHOD D: Majority vote (including AEA) Election of Officers Message Page 1 of 3 Shauna Howell From: Brenda Applegate Sent: Thursday, March 18, 2004 8:58 AM To: Shauna Howell Ce: Mike_Cunningham @chugachelectric.com Subject: FW: Bradley Lake PMC Meeting Please see wording for the motion below From: Mike Cunningham [mailto:Mike_Cunningham@chugachelectric.com] Sent: Thursday, March 18, 2004 8:50 AM To: Brenda Applegate Subject: RE: Bradley Lake PMC Meeting Sounds good - covers the bases. From: Brenda Applegate [mailto:bapplegate@aidea.org] Sent: Thursday, March 18, 2004 8:52 AM To: Mike Cunningham Cc: Shauna Howell Subject: RE: Bradley Lake PMC Meeting How does this sound: Motion to refund the Operations and Maintenance surplus as reported in the FY03 PMC financial statements and approve the budget adjustments per Budget Scenerio B. From: Mike Cunningham [mailto:Mike_Cunningham@chugachelectric.com] Sent: Thursday, March 18, 2004 7:51 AM To: Shauna Howell; Brenda Applegate Subject: RE: Bradley Lake PMC Meeting Brenda, Do you have some words we can put in the form of a motion on the refund of prior year’s surplus? Thanks. From: Shauna Howell [mailto:SHowell@aidea.org] Sent: Thursday, March 18, 2004 7:37 AM To: Mike Cunningham Subject: RE: Bradley Lake PMC Meeting Good morning. | was giving the clarification item on the agenda some more thought last night and was thinking that if you did have a few minutes before the meeting, if you could email me a motion for that item, that would be great. Then, at least we would have something to take into the meeting to avoid more confusion. Thanks. 3/18/2004 Message 3/18/2004 Page 2 of 3 From: Mike Cunningham [mailto:Mike_Cunningham@chugachelectric.com] Sent: Monday, March 15, 2004 3:39 PM To: Shauna Howell Subject: RE: Bradley Lake PMC Meeting Ok, let's see how it plays out. From: Shauna Howell [mailto:SHowell@aidea.org] Sent: Monday, March 15, 2004 3:43 PM To: Mike Cunningham Subject: RE: Bradley Lake PMC Meeting | don't think so. We'll have to wait and see what Steve thinks. If so, that one can be taken care of during the meeting. From: Mike Cunningham [mailto:Mike_Cunningham@chugachelectric.com] Sent: Monday, March 15, 2004 3:35 PM To: Brenda Applegate; Shauna Howell; BZacharski@HomerElectric.com; hfdale@gvea.com; MillerRE@ci.anchorage.ak.us Subject: RE: Bradley Lake PMC Meeting Ok. Good suggestion. Shauna, | don’t think we need a motion on the clarification, do we? From: Brenda Applegate [mailto:bapplegate@aidea.org] Sent: Monday, March 15, 2004 3:32 PM To: Mike Cunningham; Shauna Howell; BZacharski@HomerElectric.com; hfdale@gvea.com; MillerRE@ci.anchorage.ak.us Subject: RE: Bradley Lake PMC Meeting Looks good. | think we should add Operating and Capital budget after "2005" in number 3. Additionally, Shauna has on the agenda for us to obtain clarification on the motion from the last meeting regarding the refund. From: Mike Cunningham [mailto:Mike_Cunningham@chugachelectric.com] Sent: Monday, March 15, 2004 3:15 PM To: Shauna Howell; Brenda Applegate; BZacharski@HomerElectric.com; hfdale@gvea.com; MillerRE@ci.anchorage.ak.us Subject: RE: Bradley Lake PMC Meeting Will these work (having not seen the agenda as yet - working form memory): 1. Move to accept the results of the "Bradley Lake Project Management Committee Operating and Revenue Funds for Fiscal Year 2003" as presented by Parisena, Stromberg and Company. 2. Move to amend the Fiscal Year 2004 Operating and Capital budget as presented. 3. Move to adopt the Fiscal Year 2005 as presented. Message Page 3 of 3 Let me know if those work. Regards, From: Shauna Howell [mailto: SHowell@aidea.org] Sent: Monday, March 15, 2004 2:31 PM To: Mike Cunningham Subject: Bradley Lake PMC Meeting Packets for the PMC meeting are finished and you should be receiving yours sometime this afternoon or early tomorrow morning. | made sure to put a note on the one for you so you would also get a copy of the audited financial statements. As for that section of the meeting, | need a fax or an email of the motions you will be presenting to the PMC for the approval of those items prior to the meeting on Thursday. Thank you. showell@ aidea.org 3/18/2004 Shauna Howell From: Zacharski, Bob [BZacharski@ HomerElectric.com] Sent: Wednesday, March 17, 2004 1:25 PM ; ) a leap To: Shauna Howell Add ok To pas ey Subject: FW: Use if Contingency Fund l ie 7 3 (4/ of > -----' Original Message----- > From: Zacharski, Bob > Sent: Tuesday, March 16, 2004 9:23 AM > To: Art Copoulos (E-mail); Cooley, John (E-mail); Doug Hall (E-mail); Henri Dale (E- mail); Stead, Donald (Don) (E-mail) > Subject: Use if Contingency Fund > > Gentlemen, > Please review the draft for the approval and use of the $100k contingency fund as presented to the budget committee. > > 1) O&D will review project requests and approve or deny use of the contingency fund > 2) Only unbudgeted projects with immediate operating consequences will qualify for consideration > 3) Fund activity will be presented at each BPMC meeting > > Please call with any questions. > Bob If you are unable to attend the meeting in person, please use the following phone instructions: TELECONFERENCE INSTRUCTIONS Thursday, March 18, 2004 — 10:00 a.m. To join the meeting, please do the following: Dial 1-800-315-6338 Enter 813# BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES X ~.. 813 W. Northern Lights Boulevard en Anchorage, Alaska Wednesday, January 7, 2004 — 9:00 a.m. tS CALL TO ORDER Chairman Steve Haagenson called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 9:00 a.m. on Wednesday, January 7, 2004, from the Alaska Industrial Development and Export Authority’s Board Room, Anchorage, Alaska, to conduct the business of the Committee per the agenda and public notice. 2 ROLL CALL Roll was called by Shauna Howell. The following members were present: Steve Haagenson Golden Valley Electric Association Joe Griffith Chugach Electric Association Rick Eckert Homer Electric Association Don Zoerb Matanuska Electric Association (teleconference) Jim Posey Anchorage Municipal Light & Power Dave Calvert City of Seward Art Copoulos Alaska Energy Authority 3. PUBLIC ROLL CALL Shauna Howell, Alaska Energy Authority Brenda Applegate, Alaska Energy Authority Bob Day, Anchorage Municipal Light & Power Doug Hall, Anchorage Municipal Light & Power Bob Price, Anchorage Municipal Light & Power Rick Miller, Anchorage Municipal Light & Power Ed Ruebling, Anchorage Municipal Light & Power Jim Walker, Matanuska Electric Association (teleconference) Mike Cunningham, Chugach Electric Association (teleconference) John Cooley, Chugach Electric Association Brian Hickey, Chugach Electric Association Bob Zacharski, Homer Electric Association (teleconference) ‘ Bradley Lake PMC Meeting Minutes for January 7, 2004 Meeting 4. PUBLIC COMMENT There were no public comments. 5. AGENDA COMMENTS Budget adjustment/construction funds presentation from Mike Cunningham and Brenda Applegate to be added as item 7C. 6. APPROVAL OF MEETING MINUTES — October 21, 2003 Mr. Posey moved to approve the meeting minutes of October 21, 2003. Seconded by Mr. Calvert. A voice vote was taken, and the minutes were unanimously approved. 7A. VA Tech Budgetary Proposal —- Robert Day Bob Day gave a brief overview of the proposal and September 23, 2003 letter (attached). MOTION #04-1: Mr. Griffith moved that be it resolved that the BPMC authorize HEA to immediately proceed with contract negotiations with VA Tech to provide the services and equipment as described in their proposal of September 23, 2003, at a cost not to exceed $1.8 million. A decision to proceed or not to proceed with the work past the modeling phase will be allowed under this contract. The modeling phase is not to exceed $400,000. Proceed to obtain FERC approval of modifications. Seconded by Mr. Posey. A voice vote was taken, and the motion was unanimously approved. MOTION #04-2: Mr. Griffith moved that be it resolved that the BPMC requests HEA to enter into a continued employment arrangement with Don Stead in order to retain his knowledge and services for this governor modification project. Terms to be negotiated by HEA and Mr. Stead. Seconded by Mr. Calvert. A voice vote was taken, and the motion was unanimously approved. 7B. FERC Update Art Copoulos Mr. Copoulos noted that Ron Saxton and Chair Haagenson had met with FERC in Washington, D.C. FERC in D.C. said they will defer to Portland, and the Portland office said they would defer to local permit regulators/evaluators. Permits must be obtained from U.S. Fish and Wildlife, Fish and Game, Department of Natural Resources, and possibly the Corps. The only issue of concern is question of whether when the airstrip is closed, will we continue to allow public access to the Martin River Airstrip. Plans as initially discussed include abandoning the airstrip, put white Xs across it, but leave the airstrip in place. The plan is to not allow any public access. The airstrip will be in accordance with Federal air regulations. Page 2 of 4 ‘ Bradley Lake PMC Meeting Minutes for January 7, 2004 Meeting 7C. Budget Adjustment / Const. Funds Mike Cunningham & Brenda Applegate A handout was presented to the committee (attached). Brenda Applegate gave an overview, and also discussed the treatment of surplus amount and its effect on the FY04 contributions. MOTION #04-3: Mr. Griffith motioned to refund the June 2003 balance of $2,013,381.00 in accordance with agreements and approve and bill in accordance with Budget Scenario B and to hold the money and pay out at a later date. Seconded by Mr. Posey. Mr. Zoerb asked to know the background of the $30,000.00 legal item included in the revision. Chair Haagenson stated the following estimated PMC legal costs: $5,000 for insurance issues, $5,000 for FERC licensing, $5,000 for meeting attendance, $5,000 for construction contracting, $10,000 for legislative review of Bradley transfer to utilities including bond review and analysis. The $30,000.00 is a SWAG and Chair Haagenson will discuss with Ron Saxton to verify number. fs LivinaAhe. MEA expressed its reservations about AterWynne firm representing the PMC given its adverse posture to MEA’s interest in a number of other venues. Mr. Zoerb stated that MEA would be comfortable with the budget revision if not for the $30,000.00 legal item. Absent that, MEA will have a problem concurring to the motion if it includes a further financial commitment to the firm that is adverse to them in other venues. Chair Haagenson stated that what the group was voting on is a budget adjustment, not who the vendor should be. Mr. Zoerb noted that the budget adjustment includes an additional $30,000.00 commitment to the firm that they object to, and because of the $30,000.00 item, they will have to vote against the budget revision. A roll call vote was taken on Motion #04-3: Utility Vote City of Seward Yes Matanuska Electric Association No Chugach Electric Association Yes Homer Electric Association Yes Golden Valley Electric Association Yes Anchorage Municipal Light & Power Yes Alaska Energy Authority Yes Mr. Zoerb requests that the reason for voting against the motion be recorded in the minutes. “Our objection is based solely on the inclusion of an additional $30,000.00 commitment to the AterWynne law firm, based on the conflict of interest that MEA perceives this law firm to have.” Page 3 of 4 \ Bradley Lake PMC Meeting Minutes for January 7, 2004 Meeting 8A. Next Meeting Date Chair Haagenson The next meeting will be at the Call of the Chair. 8B. Operators Report Bob Zacharski Mr. Zacharski reported that they have been operating with one operator short for the last nine months. In November they certified a third operator and were fully staffed. One month later, they had another lost time injury with one of the three operators at Bradley. This operator was the electrician and that put them behind on the PMs. In two weeks they will be getting another electrician from the Nikiski power plant and hope to clean up all the outstanding PMs on the electrical side. IS O07 ONE The runner repairs have been completed. An ongoing document control effort;in-eonjunction- 2 to He Ly with Arts office to categorize and catalog the drawings and publications associated with Bradley. Lastly, he stated that VA Tech visited the site two weeks ago to take a first hand look at the governor and actuator cabinets. 8C. Insurance/Risk Assessment Scope of Work/ Signed _ Chair Haagenson Chair Haagenson stated that he had completed and mailed the Application for Directors & Officers Liability Insurance for the Bradley Lake Project Management Committee. Chair Haagenson will send a letter changing the answer to question #10 under the Organization Information section to clarify and state that AEA, the owning organization is a State/government entity. Chair Haagenson noted that he had two action items — the legal fix on construction funds, as well as the D&O questionnaire issue. 9. ADJOURNMENT The meeting was adjourned at 10:15 a.m. BY: Steve Haagenson, Chairman ATTEST: Alaska Energy Authority, Secretary Page 4 of 4 eS9-4 MEP’ MUNICIPAL LIGHT & POWER RECEYVED Steve Haagenson Deu 4 6 2903 Chairman Bmdley Lake Project Management Committee Golden Valley Electtic Association P.O. Box 71249 S ’ Faicbanks, Alaska 99707 VEA Polding Company December 10, 2003 Dear Steve: On December 9% at 10 AM the Governor Subcommittee met in Anchorage. At the meeting the governot replacement project (DCS) and the new proposal from VA Tech was discussed with a representative from VA Tech. A copy of the VA Tech proposal is attached to this lettcr. In addition to the actual tcplacement of the Governor controls at Bradley Lake VA Tech proposes to model the turbine and its performance characteristics ptovide some modifications to the deflectors and to provide shielding of the jct streams, For a complete description of the VA Tech proposal please sec the attached descriptions. The Governor subcommittee has carefully reviewed the proposal and the subcommittee unanimously recommends that the BPMC authorize Homcet Electric Association (HEA) to immediately proceed with contract negotiations with VA Tech to provide the services and equipment described in their proposal of September 23, 2003. The subcommittee is of the opinion that this work in addition to the DCS work will substantially mitigate the problems we experience with the Bradley Lake system. The budgetary price for this work is $1.8 Million; however, VA Tech has indicated a potential reduction in price if the contract is negotinted by the end of Januaty, ‘The first $400k will be utilized to build a model to prove out the ideas expressed by the VA Tech proposal. At the completion of the modeling phase further input will be provided from the subcommittee to determine the exact nature of the changes to the plant system necessary to provide the tieeded improvements. If the modeling does not prove out the ideas the BPMC could end the project with out further obligation. The subcommittee is confident that the modeling will prove the viability of the fixes proposed and implementing the same will result in improvements to the Bradley Lake system that will provide substantial economic payback through improving the operational flexibility of the Plant and increasing the availably of the plant to tespond to system disturbances. The subcommittee is also concerned about the continuity of this project with the imminent departure of Don Stead from HEA. Don has been a primary force in the governor activity to date and the committee feels much could be lost is Don were to be totally absent from the remainder of this project. In addition to recommending the approval of the proposal from VA Tech the committee recommends that the BPMC authorize HEA to execute a contract with Mr. Stead to provide future consultative sctvices to the Subcommittee and to the representatives of HEA as necessary so as to facilitate the successful completion of this large project. A contract for professional sctvices not to exceed $40k should be adequate. The committee respectfully requests that the BPMC convene as soon as possible to act on the requests of the subcommittee. Sincerely, Chairman Bradicy Governor Subcommittee 1200 East First Avenuc * Anchorage. Alaska * 99501-1685 Phone 907.279.7671 » Fax 907.263.5862 : waver mandy com 800/200'd + eSt-L (s6S8S7206 UOTIELS|UIWHY Y3AV—WO1Y WEP gD £0-9|-28 F653 AAAAAAAAA AFLESLFEOLTEIL ZICLET P.003/008 T-553 9074585951 - aeeeeaanererreses, Ure ZELELOPILICLTACTOLE EL LUCTCtS GT, From-GVEA Administration 09:47am Dec-16-03 Pontes wune NEW PARTS SCCORDINS OFFER PRE MARKED IN RED CORROS(ON FROTECT (ON CF OFFERED PARTS (NCLJCED TYFE VERY. PELIGN MURB1SE SET HEAD 11s fe ourrut 90170 HP van 300 cpa GIL PRESSURE 637 PS1 = srSys—| PROTECT CON RCOF JE” O-VLDER <EYS D-VICER - LEVER ~ FUXING FARTS - EL. FEE) 3Acx - MECH. CCN. PONS TYP SERVOYOTCR ie \s B FEED 650% ICAL 3 3 | | a — roe oe = ame r ce vs ie is 345, Tis Danes VATEGE VA TECH VOEST MCE Corp. September 25, 2003 Homer Electric Association, Inc. 3977 Lake Street Homer, Alaska 99603 Attn: Don Stead Engineering Manager Subject: Bradley Lake Jet Divider versus Deflector Dear Don, in addition to our budgetary proposal sent earlier this week we would like to provide the following information: Bradley Lake — Existing Deflector as per Fuji drawing no. Rennes: LS “aS a ” VA TECH VOEST MCE Corp, Tol; (+1/704) 043-4343 VA TECH HYDRO University Research Park Fax: (+1/704) 943-0200 Five Resource Square E-mail; — contact@vatochhysire.com vO Ee (AY SAT 10715 David Taylor Drive Homepage: www.vatechhydro-us2.com It mce avrosrion Sorote, NC 28262, USA Fila: Explanaton_030925.doe fS9-i 600/P00'd egs-L (segesrl06 UO!ZeszS|UIWPY Y3Ay—wo1y wWeyy:g9 EQ-9|-98q VATEGE VA TECH VOEST MCE Corp. Basic sketch that shows how the existing deflector and the proposed jet divider are working. If the deflector is in operation the complete jet gets pushed to a bigger diameter D, what causes jet interferences and efficiency losses. Original deflector _ Cut-in-deflector _ D, too large -> jet-interference : . D, correct -> no jet-interference This information is proprietary and for your internal use only. It has to be kept strictly confidential. We trust that this information will not be shared with any third party. If you have any questions please don't hesitate to contact us. Kind regards, Oswin Moeller Head of Automation, Control & Protection (ACP) VA TECH HYDRO @)\c::: ~=aww SAT Es8-J —800/900'd = esg-1 (s6S8Sr206 UO!ZEIISIUIUpyY W3AH—Wosy = We RY: BO £0-31-289 WATEGH! VA TECH VOEST MCE Corp. September 23, 2003 Homer Electric Association, Inc. 3977 Lake Street Homer, Alaska 99603 Attn: Don Stead Engineering Manager Subject: Bradley Lake Budgetary Proposal for Necessary Pelton Turbine Modifications Dear Don, During the preparation and modification of our Bradley Lake Governor DCS Proposal and our meetings in Homer and Anchorage, It became obvious for VA TECH that a substantial improvement of the governor frequency control performance in deflector mode (power vs. deflector servomotor stroke curve) and small signal disturbances (4-6 MW power swings) can be achieved only in conjunction with modifications to the Pelton Turbines and in particular, the Deflectors and appurtenant equipment. VA TEGH'’s Genter of Competence for Pelton Turbines in Switzerland have studied the Fujl turbine drawings and Model Test Reports supplled by HEA and have recommended a “Jet Divider” vs. existing “Deflector” (cuts away part of the jet and leaves the remaining part of the jet more or less undisturbed) and subsequent changes to the stroke which requires a new “Divider Servomotor and very likely a “Protection Roof” which Is attached to each nozzle and reflects the water which Is deflected by the preceding jet divider. The enclosed VA TECH Drawing 0 841 713 222, Divider System Assembly clearly Indicates the changes (In red) that are required to the Bradley Lake Turbines. The proposed steps and associated budgetary cost in providing these proposed modifications will be: 1. Homologous Model Test 4.1 Build a homologous model (deflector, nozzle hat, nozzle needle, runner and turbine housing homologous to Bradley Lake) and perform a model test In our Test Laboratory In Switzerland to: a.) Measure runner torque (power) fluctuations at various deflector positions and verify model test results with experienced torque fluctuations in the field. HEA will provide the existing field test results. b.) Observation and analysis of the jet interference and water flow inside the turbine housing during deflector operation. VA TECH VOEST MCE Corp, Tol: (41/704) 943-4343 HY! Univorsity Resonrch Park Fax: (+1/704) 943-0200 VA TECH DRO Five Resource Square £-mail: contact@vatechhydro.com Omce LAA. ‘SA T 10715 David Taylor Drive Wobsite: waw.vetechhydro-use.com A Suite 250 Chatiatle, NC 28262, USA 9-4 800/800'd + ege=L 1s6Sesp06 UO!JELIS|UIUPY Y3AV-WO1y = Wegy: BO 0-91-98 VA EGE VA TECH VOEST MCE Corp. c.) Design and install the VA TECH “Jet divider’, “protection roof” and other modified components in the model based on the above analysis and observations and perform the identical tests as above to prove the expected results. d.) Thoroughly document and submit the results of this testing to HEA for final approval to design the final prototype components based on these test results. Proposed Scope of Supply _ 2. Jet Divider, Divider Servomotor and Servomotor Links 2.1 2.2 Due to the new design of the VA TECH jet divider, the linear stroke of the servomotor will increase by approximately 50%, therefore the old deflector servomotor and the linkage to the existing deflector operating mechanism will require replacement. As the oll flow will also increase, the piping from the governor oi! accumulator to the actuator cabinet and to the new jet divider servomotor will require replacement (larger diameter due to Increased volume). A third governor oil pump will be raquired on the existing governor sump tank for the increased volume required (2 lead pumps and1lag pump), Each unit (two units total) will be equipped with the following new main Teen coated according to their individual requirements: e 1 set (qty. 6) of jet dividers including all necessary pins and keys as shown on the attached drawing * 1 jet divider servomotor Including al! necessary installation material (linkage to existing operating mechanism, bolts, nuts, pins, keys, anchors, etc) * 1 governor oll pump including motor, motor starter and all necessary Installation material * 14 set of piping material (stalnless steel) to connect the additional governor oll pump to the existing system * 1 set of piping material (stainless steel) to connect the deflector distributing valve to the new jet divider servomotor * 1 set of piping material (stainless steel) to connect the deflector distributing valve to the existing governor oil accumulator, 3. Protection Roof eg9-J 3.1 800/200'd + ess=L (s6S8Sr206 To prevent deflected water splashing back on the runner buckets VA TECH will design a protection roof based on the model test results. A typical layout Is shown on the enclosed drawing. « VATECH will provide all necessary Installation material to attach the new protection shield to the existing needle housing. Page 2 of 4 UOIEIISIUIWpY YRAH-Wo1y weep: gp €0-9 1-269 WALTEGH VA TECH VOEST MCE Corp. 4. Site Erection Work ° VA TECH will remove and Install all mechanical, hydraulic (including plping) and electrical components as stated above. HEA will be responsible to dispose of any components no longer required, After installation, connection and dry testing of the components, VA TECH’s Site Supervisor and Commissloning Engineer, assisted by HEA will make all necessary checks and performance tests. For the price calculation we assumed the following: Both units will be modified without Interruption. The work will be performed in parallel with the governor replacement and coordinated by one VA TECH supervisor. VA TECH personnel will use the existing accommodation and cooking facilities at slte and HEA will provide Air Transportation in and out of Bradley Lake as provided In the Governor DCS Contract. VA TECH will use stainless steel piping to avold plekling. Each plpe replaced will be pressure tested at 1.3 times operating pressure and visually Inspected for leakage. There is no lead based paint, which requires abatement and disposal. 5. Engineering Work Homologous Modal test preparation, execution and report. Mechanical design of all modified and/or new components. Detalled site work procedures. Submittals of all documents. Workshop tests. Commissioning and performance tests. Final documentation. Budgetary Price Total for Item 1 - 5 for two units, $ 1,800,000.00 Our budgetary price is FOB job site and includes all necessary customs clearances and insurances. This price is based on the assumption that the order execution will be done in - parallel with the governor contract. Our price does not include sales and use taxes. 9-4 800/800'd Page 3 of 4 egs-1 196857206 vo!384381ujupy V3AS-Wo1y We BH BO £0-91-289 VAUEGK] VA TECH VOEST MCE Corp. Dellvery Time * The delivery time for the model test results will be 5 months after contract award. : « The delivery time for the new components will be 8-9 months after release of model test results. : Payment « 30% after submittal of model test results « 50% after delivery *® 10% after installation and fleld-testing of the first unlt * 10% after installation and field-testing of the second unit Warran Our warranty ends 12 months after commissioning but not later than 24 months after delivery. Validity Our budgetary offer Is valid until Dec 31, 2003. If you have any questions please don’t hesitate to contact us. n Moeller, Head of Automation, Control & Protection (AGP) Attachments: Jet Divider Assembly drawing no. 1841-713-222 Rev. A Page 4 of 4 S9-4 600/600'd ess-1 (s6e8S7206 UOIEIYSIUIUPY YRAD-WOLY — Wey: gD ‘e0-g 1-089 Summary of FY04 proposed budget adjustments Scenario A-surplus not refunded Chugach Electric Muni of Anch. AEG&T GVEA Seward Total 30.40% 25.90% 25.80% 16.90% 1.00% 100.00% Proposed O&M additions : 124,700.80 106,241.80 105,831.60 69,323.80 4,102.00 410,200.00 (see detail schedule) Adjustment for change in surplus FY03 actual vs projected-unaudited (337,403.52) (287,458.92) _ (286,349.04) (187,569.72) (11,098.80) _(1,109,880.00) Net decrease-FY04 contributions 212,702.72 181,217.12) (180,517.44) (118,245.92 6,996.80 699,680.00 Scenario B-surplus refunded Proposed O&M additions 124,700.80 106,241.80 105,831.60 69,323.80 4,102.00 410,200.00 (see detail schedule) Adjustment for not using FY03 surplus to fund FY04 budget 274,664.30 234,006.76 233,103.26 152,691.67 9,035.01 903,501.00 Net increase-FY04 contributions 399,365.10 340,248.56 338,934.86 222,015.47 13,137.01 1,313,701.00 Refund-FY03 surplus-unaudited (612,067.82) (521,465.68) (519,452.30) (340,261.39) (20,133.81) (2,013,381.00) Net effect 212,702.72 181,217.12) (180,517.44) (118,245.92) (6,996.80) _ (699,680.00) Scenario A Bradley Lake FY04 Amended Budget Summary Chugach Electric Muni of Anch. AEG&T GVEA Seward Total 30.40% 25.90% 25.80% 16.90% 1.00% 100.00% Expenses Budget additions 90,500.80 77,104.30 76,806.60 50,311.30 2,977.00 297,700.00 Increase for Governor 34,200.00 29,137.50 29,025.00 19,012.50 1,125.00 112,500.00 (assumed all in FY04) FY04 Budget Additions 124,700.80 106,241.80 105,831.60 69,323.80 4,102.00 410,200.00 Effect of Actual Surplus vs projected used FY03 Projected Surplus used in FY04 budget 274,664.30 234,006.76 233,103.26 152,691.67 9,035.01 903,501.00 FY03 Actual Surplus (see below) (612,067.82) _ (521,465.68) _(519,452.30) _(340,261.39) (20,133.81) _(2,013,381.00) Total adjustment for change in surplus (337,403.52) (287,458.92) (286,349.04) (187,569.72) (11,098.80) (1,109,880.00) Net decrease-FY04 Contributions $ (212,702.72) $ (181,217.12) $ (180,517.44) $ (118,245.92) $ (6,996.80) $ (699,680.00) Assumptions -Governor work all in FY04-out of R&C fund Payback over 4 year period -FY03 surplus is used for FY04 O&M-unaudited-may not be final -Effect on interest earnings not considered for this analysis When budget adjustments are finalized, actual contributions will be calculated with effect on interest earnings included in calculation. FY04 Budget adjustments-Scenerio A FERC Acct Description $ amount Explanation 544 Repair projects-runner $ 80,000.00 Unexpected repairs and relays 540 FERC Land use fees $ 33,000.00 Rates billed by FERC in prior year for prior years incorrect 543 HEA O&M-Maintenance $ 53,700.00 Increase up to contract amount 920 PMC Legal $ 30,000.00 924 Insurance $ 90,000.00 Increased actual costs capital Snow Machines (2 .) $ 11,000.00 O&D committee recommendation ~$ 297,700.00_ capital Governor $450,000.00 current budget=$1,050,000 revised budget $1,500,000 Scenario B Bradley Lake FY04 Amended Budget Summary Chugach Electric Muni of Anch. AEG&T GVEA Seward Total 30.40% 25.90% 25.80% 16.90% 1.00% 100.00% Expenses Budget additions $ 90,500.80 $ 77,104.30 $ 76,806.60 $ 50,311.30 $ 2,977.00 $ 297,700.00 Increase for Governor 34,200.00 29,137.50 29,025.00 19,012.50 1,125.00 112,500.00 (assumed all in FY04) FY04 Budget Adjustments 124,700.80 106,241.80 105,831.60 69,323.80 4,102.00 410,200.00 FY04 projected surplus 274,664.30 234,006.76 233,103.26 152,691.67 9,035.01 903,501.00 Total adjustment for change in surplus 274,664.30 234,006.76 233,103.26 152,691.67 9,035.01 903,501.00 Net increase in contributions needed $ 399,365.10 $ 340,248.56 $ 338,934.86 $ 222,015.47 $ 13,137.01 $ 1,313,701.00 Refund of actual surplus through 6/03 (see below) (612,067.82) (621,465.68) (519,452.30) (340,261.39) (20,133.81) $ (2,013,381.00) Net increase (decrease)-FY04 contributions $ (212,702.72) $ (181,217.12) $ (180,517.44) $ (118,245.92) $ (6,996.80) $ (699,680.00) Assumptions -Governor work all in FY04-out of R&C fund Payback over 4 year period -FY03 surplus is refunded-unaudited-may not be final -Effect on interest earnings not considered for this analysis When budget adjustments are finalized, actual contributions will be calculated with effect on interest earnings included in calculation. -FY03 final numbers are unaudited-FY3 surplus may not be final FY04 Budget adjustments-Scenario B FERC Acct Description 544 Repair projects-runner and relays 540 FERC Land use fees for prior years 543 HEA O&M-Maintenance 920 PMC Legal 924 Insurance capital Snow Machines capital Governor $ amount $ 80,000.00 $ 33,000.00 53,700.00 30,000.00 $ $ $ 90,000.00 $ 11,000.00 $ 297,700.00 $ 450,000.00 Explanation Unexpected repairs Rates billed by FERC in prior year incorrect Increased up to HEA contract amount Increased actual costs O&D committee recommendation current budget=$1,050,000 revised budget $1,500,000 ALASKA ENERGY AUTHORITY BRADLEY LAKE FINAL CONSTRUCTION LIST EPORT OF ACTIVI ITEM 1 Fish Study/Mitigation-complete 2 Fish Water SCADA - Const-complete 3 Moose Mitigation Fund - complete 4 Diversion Tunnel - complete 5 Powerhouse Floor/Paint - complete (A) SETTLEMENT AGREEMENT PUNCHLIST 220,000.00 100,000.00 185,215.00 5,000.00 5,000.00 (B) Adjustment/ Reallocation (17,217) 15,639 575 (693) (1,583) (Cc) (A) + (B) Revised Estimate 202,782.90 115,639.15 185,790 4,307 3,417 (D) Payments thru 11-30-03 202,782.90 115,639.15 185,790.16 4,307.45 3,417.07 (C) - (D) 11-30-03 Estimate to Complete 7 Equipment - complete 8 Misc Engineering -complete 9 Fishwater Bypass Cleanup - complete 10 ADIT Access Modification - complete 11 Building Roof Modification - complete 12 Airfield Road Access - complete 13 Cold Weather Modification-complete 14 Rip Rap Upstream Face of Left Dam - complete 45 Approved Workord BOleROOE g B019 Parapit Wall/Gate complete B021 Fishwater Diverstion complete infinished at 3/96 16 Penstock Condensation - complete 17 Governor Instability Study System Analysis Equip at SVCs - complete 18 49 Contingency (Unallocated funding) 20 Transfer trip schemes - Old Invoices - complete 21 AEA Operating Costs complete Brown & Root Retainage complete 23 Interest on Retainage complete Previously approved punchlist 24 Control System Modifications 15,000.00 40,000.00 325,000.00 18,000.00 45,000.00 35,000.00 5,000.00 175,000.00 155,244.00 (6,879) (40,000) (12,931) (4,761) 22,038 (5,416) (4,705) (91,010) 3,740 8,121 312,069 13,239 67,038 29,584 295 83,990 158,984 8,121.48 312,069.23 13,238.77 67,038.14 29,584.46 294.53 83,989.85 158,983.83 145,000.00 1,021,400 | 1,166,400 812,676.30 353,723.70 150,000.00 (138,770) 11,230 11,230.40 - 290,844.00 426,068 716,912 - 716,912.40 170,500.00 (15,275) 155,225 155,225.36 < 70,000.00 (14,464) 55,536 55,535.82 - 102,958.00 (102,958) : - - 100,000.00 (100,000) - - - 2,502,761 787,800 | 3,290,561 2,219,924.90 | 1,070,636.10 970,480.00 (787,800) 182,680 - 182,680.00 3,473,241 - 3,473,241 2,219,924.90 | 1,253,316.10 H:MALLIELAINE\BRADLEY\Bradley Construction\BLCONST-1 1-30-03 - Punchlist Main Office (907) 224-4050 Police (907) 224-3338 Harbor (907) 224-3138 Fire (907) 224-3445 Fax (907) 224-4038 CITY OF SEWARD PO. BOX 167 SEWARD, ALASKA 99664-0167 March 16, 2004 Steve Haagenson, Chairman Bradley Lake Project Management Committee P.O. Box 71249 Fairbanks, Alaska 99707-1249 Dear Mr. Haagenson: This will confirm that the representative for the City of Seward on the Bradley Lake Project Management Committee will be Dave Calvert, Manager of the Electric Department. The alternate will be Rick Gifford, Assistant City Manager. “yp Phil Shealy City Manager on Dave Calvert Rick Gifford SOLDEN VALLEY ELECTRIC ASSOCIATION INC. Po Box 71249 © Fairbanks, Alaska 99707-1249 * 907-452-1151 = www.gveo.com March 11, 2004 BPMC Representatives AIDEA/AEA 813 W Norther Lights Blvd Anchorage AK 99503-6690 RE: BPMC Representation Dear BPMC Representatives: | am the Bradley Lake Hydroelectric Project Management Committee (BPMC) representative for Golden Valley and Kate Lamal is my alternate. Sincerely, Steve nee President & Chief Executive Officer 298-4 200/200'd = 089-1 " (969897208 YOIJeLyS/UlWPY YRAQ—WOLY = WdOH?20 p= 1 | -1eW Alaska Industrial Development and Export Au" * AID. = AWA A Alaska Energy Authority June 2, 2003 Mr. Steve Haagenson Golden Valley Electric Association,.Inc. Chairman, Bradley Lake Project Management Committee P.O Box 71249 Fairbanks, Alaska 99707-1249 Re: Representatives to BPMC and alternate Dear Steve: Pursuant to Section 13 of the Bradley Lake Project Power Sales Agreement, the Alaska Energy Authority (AEA) designates Art Copoulos as the AEA representative to the Bradley Lake Project Management Committee, and Karl Reiche as the alternate representative. Their contact information is as follows: Art Copoulos Karl Reiche (907) 269-3029 (907) 269-3017 acopoulos@aidea.org kreiche@aidea.org Singerely, ~ Ron Milfer Executive Director RM/AC/€d H:\ALL\sdean\Art\bpmc designate.doc cc: Joe Griffith, CEA Norm Story, HEA Dave Calvert, City of Seward Wayne Carmony, MEA Jim Posey, AML&P Art Copoulos, AEA Karl Reiche, AEA 813 West Northern Lights Boulevard * Anchorage, Alaska 99503 907 / 269-3000 * FAX 907 / 269-3044 * Toll Free (ALASKA ONLY) 888 / 300-8534 * www.aidea.org SENT BY: MEA ADMIN & HR; Z Matanuska Electric Association, Inc. P.O. Box 2929 Paimer, Alaska 99645-2929 Telephone: (907) 745-3231 Fax: (907) 745-9328 March 17, 2004 BPMC Representatives AIDEA/VAEA 813 W. Northern Lights Bivd. Anchorage, AK 99503-6690 Re: BPMC Representation Dear BPMC Representatives: 1 am the Bradley Lake Hydroelectric Project Management Committee (BPMC) representative for Matanuska Electric Association, Inc. and Donald W. Zoerb is my alternate. Sincerely, 907 761 9349; Wayne D. Carmony General Manager Lam MyDowunentiGM yOithiox MemacandLctters\2004\09.17.048PMC,Representlry ee MAR-17-04 10:37AM; PAGE 2/2 9371272004 @7:39 NO. @49 Da2 MUNICIPAL LIGHT & POWER March 11, 2004 Mr. Ron Miller Executive Director Alaska Industrial Development and Export Authority (AIDEA) 813 West Northem Lights Boulevard Anchorage, Alaska 99503 RE: ML&P Voting Member & Altermate Bradley Lake Project Management Committee Dear Mr, Miller: For your information, the Municipal Light & Power (ML&P) Representative voting member on the Bradley Lake Project Management Committee is James M. Posey; and, the Alternate member is Richard E. Miller. Please correspond or call 263-5201 if you require additional information. Thank you. Ce nes M. Posey General Manager oo: Mr. Steve Haagenson, Chairman, Bradley Lake Project Management Committee JMP/ird 1200 East First Avenue * Anchorage, Alaska * 99501-1685 Phone 907.279.7671 * Fax 907.263.5862 wavw.mlandp.com Homer Electric Association, Inc. Corporate Office Central Peninsula Service Center 3977 Lake Street 280 Airport Way Homer, Alaska 99603-7680 Kenai, Alaska 99611-5280 Phone (907) 235-8551 Phone (907) 283-5831 FAX (907) 235-3313 FAX (907) 283-7122 7 March 10, 2004 Mr. Steve Haagenson, Chairman Bradley Lake Project Management Committee c/o Shauna Howell AIDEA 813 W. Northern Lights Blvd. Anchorage, AK 99503 FAX: 907-269-3044 Dear Mr. Haagenson: This letter is to advise that I, Bradley P. Janorschke, am Homer Electric Association’s representative and voting delegate to the Bradley Lake Project Management Committee (BPMC) and Mr. Bob Zacharski is the alternate voting delegate. Sincerely, HOMER ELECTRIC ASSOCIATION, INC. Zt TL Bradley P. Janorschke, General Manager F:\GM\BRAD\2004\04 Letters\letters\bpmc.rep.doc A Touchstone Energy” Cooperative Kh pa MAR-10-2004 WED 02:33 PM CEA EXECUTIVE FAX NO, 1 907 562 6994 P, 02 CHUGAS: POWERING ALASKA’S FUTURE October 20, 2003 Mr. Steve Haagenson President & CEO Golden Valley Electric Association, Inc. P.O. Box 71249 Fairbanks, Alaska 99707 Dear Steve: Lee Thibert is designated as my alternate for the Bradley Lake Project Management Committee. If you have any questions, I can be reached at 762-4740. ce: Committee Members Chugach Electric Association, Inc. 5601 Minnesota Drive, PO. Box 196300, Anchorage, Alaska 995 19-6300 © (907) 563-7494 Fax (907) 562-0027 © (800) 478-7494 www.chugachelechic.con * info@chygachelectric.com BRADLEY LAKE HYDROELECTRIC PROJECT Schedule A FY02 FY03 FY2004 FY2005 ACTUALS ACTUALS BUDGET BUDGET REVENUES, EXPENSES & CHANGES IN SURPLUS REVENUES UTILITY CONTRIBUTIONS 13,765,790 14,409,226 14,759,086 15,332,200 INTEREST INCOME 1,772,285 1,840,740 1,559,040 1,595,262 SALE OF VEHICLE 0 0 0 MISCELLANEOUS INCOME 0 2,689 0 0 15,538,075 16,252,655 16,318,126 16,927,462 EXPENSES OPERATIONS 2,236,317 2,316,682 3,231,906 3,209,814 RENEWALS/REPLACEMENTS (R&C FUND REPAYMENTS 47,200 321,021 487,728 1,041,324 REPLACE TRANSMISSION RELAYS 200,000 PURCHASE NEW VEHICLE 29,130 11,000 0 TRANSFER TO OPERATING RESERVE 0 111,400 0 DEBT SERVICE (net of Capital Reserve Reductions) 12,273,450 12,268,075 12,273,400 12,276,325 ARBITRAGE TRANSFER 142,219 163,420 202,711 200,000 REFUND OF PRIOR YEARS SURPLUS 2,013,371 0 14,699,186 15,098,329 18,331,516 16,927,463 CURRENT YEAR SURPLUS (DEFICIT) 838,889 1,154,326 (2,013,390) (0) BEGINNING SURPLUS 20,174 859,063 2,013,389 (0) ENDING SURPLUS (DEFICIT) 859,063 2,013,389 (0) (1) BALANCE SHEET ASSETS REVENUE FUND 660,770 1,759,535 0 OPERATING FUND 698,889 684,300 0 RECEIVABLES : 2,689 1,359,659 2,446,524 0 LIABILITIES & SURPLUS LIABILITIES 500,596 433,143 0 SURPLUS 859,063 2,013,381 0 1,359,659 2,446,524 0 OTHER INFORMATION OPERATING RESERVE * 535,000 535,000 646,400 646,400 MONTHLY CONTRIBUTIONS 1,180,572 1,200,768 1,594,243 1,277,683 * Required to be 20% of budgeted operating expense 3/15/20049:15 AMC:\Documents and Settings\showell\Local Settings\Temporary Internet Files\OLK306\2005BradleyBdgt- Draft1.xlsSchedule A-Budget Summary BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B 31-Dec-03 FY2003 FY2003 FY2004 FY2004 FY2005 BUDGET ACTUAL VARIANCE BUDGET YTD ACTUAL BUDGET SUMMARY (A) HEA Annual Operations & Maintenance 1,062,700 962,284 100,416 1,216,500 635,314 1,166,649 (B) CEA Dispatch and Substation/SVC Maintenance 68,000 41,634 26,366 73,000 19,751 70,000 (C) Other O&M and Maintenance Projects 446,736 382,361 64,375 812,276 546,803 766,162 (D) Insurance Costs 435,000 509,488 (74,488) 610,000 621,519 650,000 (E) Regulatory Costs 217,500 174,687 42,813 245,630 43,731 182,500 (H) Contingencies 0 0 0 0 0 100,000 2,229,936 2,070,455 159,481 2,957,406 1,867,118 2,935,311 (F) Administrative Costs 244,500 246,228 (1,728) 274,500 256,091 274,500 2,474,436 2,316,682 157,754 3,231,906 2,123,209 3,209,811 (G) Bond Refunding Costs 0 0 0 0 0 0 2,474,436 2,316,682 157,754 3,231,906 2,123,209 3,209,811 Page 1 of 4 3/15/2004 9:15 AM C:\Documents and Settings\showell\Local Settings\Temporary Internet Files\OLK306\2005BradleyBdgt-Draft1 .xisSchedule B-Budget Detail BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B 31-Dec-03 FY2003 FY2003 FY2004 FY2004 FY2005 BUDGET ACTUAL VARIANCE BUDGET YTD ACTUAL BUDGET FERC 535 - Operation Supervision & Engineering (A) HEA O&M Contract 94,200 146,889 (52,689) 192,800 95,510 122,828 (C) HEA Digitize & Control Project Drawings 0 0 24,790 94,200 146,889 (52,689) 192,800 120,300 122,828 FERC 537 - Hydraulic Expenses (A) HEA O&M Contract 19,600 4,705 14,895 39,900 3,900 35,730 19,600 4,705 14,895 39,900 3,900 35,730 FERC 538 - Electric Expenses (A) HEA O&M Contract 354,100 171,736 182,364 63,800 100,822 | |_ 99,365 354,100 171,736 182,364 63,800 100,822 99,365 FERC 539 - Misc. Hydraulic Power Generation Expenses (A) HEA O&M Contract 148,100 201,340 (53,240) 210,900 115,219 234,321 (C) Replace Two Way Radios 0 0 10,000 (C) DIS Voice/Data Circuits (inc. space & power) 10,000 0 10,000 10,000 0 0 (C) DIS 2-way Radio Circuits & radio maint. 7,000 0 7,000 7,000 0 0 (C) HEA Circuits and Radio - To Bernice Lake 90,000 90,000 0 90,000 45,000 90,000 (C) CEA Circuits -Bernice Lake to Anchorage 28,746 28,746 0 28,746 14,373 28,746 283,846 320,086 (36,240) 346,646 174,592 363,067 FERC 540 - Rents (C) Bradley Lake FERC land use fees (5% increase bu, 76,000 34,628 41,372 108,000 100,220 74,000 76,000 34,628 41,372 108,000 100,220 74,000 FERC 542 - Maintenance of Structures (A) HEA O&M Contract 39,000 32,442 6,558 35,300 4,450 19,278 (C) Other 0 0 0 0 0 0 39,000 32,442 6,558 35,300 4,450 19,278 FERC 543 - Maintenance of Reservoirs, Dams & Waterways (A) HEA O&M Contract 5,100 19,142 (14,042) 62,000 0 10,278 (C) Bradley Lake Dam Repair 160,000 150,048 0 (C) Nuka Diversion 117,921 (C) Middle Fork Diversion 0 0 20,000 0 15,000 (C) Kachemak Creek Gauging Station 0 0 26,000 0 26,000 (C) Other O&M 2,997 3/15/2004 9:15 AM Page 2 of 4 C:\Documents and Settings\showell\Local Settings\Temporary Internet Files\OLK306\2005BradleyBdgt-Draft1.xisSchedule B-Budget Detail BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B 31-Dec-03 FY2003 FY2003 FY2004 FY2004 FY2005 BUDGET ACTUAL VARIANCE BUDGET YTD ACTUAL BUDGET 5,100 19,142 (14,042) 268,000 270,966 51,278 = FERC 544 - Maintenance of Electric Plant (A) HEA O&M Contract 284,000 283,275 725 368,400 196,342 276,741 284,000 283,275 725 L 368,400 196,342 276,741 | FERC 545 - Maintenance of Misc. Hydraulic Plant (A) HEA O&M Contract 92,000 81,286 10,714 210,600 95,757 282,169 (C) Martin River Road Study-Amendment & Removal 0 0 0 110,000 37,366 30,000 92,000 81,286 10,714 320,600 133,123 312,169 FERC 556 - System Control & Load Dispatching (A) HEA O&M Contract 6,000 12,384 (6,384) 12,200 23,314 23,315 (C) NOAA Weather Service 7,040 0 7,040 7,040 0 0 (C) SCS Snow Measurement 29,450 30,673 (1,223) 41,990 (777) 30,000 (C) UAA Seismic monitoring and reporting 56,500 56,500 0 56,500 0 56,500 (C) USGS Streamguaging 142,000 141,690 310 147,000 54,765 205,916 (C) State of Alaska Permits 0 125 (125) 0 100 0 240,990 241,372 (382) 264,730 77,402 315,731 FERC 562 - Station Expenses (B) CEA SVC/Substation Maintenance Contract 68,000 41,634 26,366 73,000 19,751 70,000 (C) SVC Condition Assessment/Staff Training 0 0 200,000 68,000 41,634 26,366 73,000 19,751 270,000 FERC 571 - Maintenance of Overhead Lines (A) HEA Overhead Line Maintenance 20,600 9,083 11,517 20,600 0 62,624 20,600 9,083 11,517 20,600 0 62,624 (H) Contigencies 0 0 0 0 0 100,000 FERC 920 - Administrative Expense (F) AEA Admin Fee 200,000 200,000 0 200,000 200,000 200,000 AEA Administrative Costs 200,000 200,000 0 200,000 200,000 200,000 PMC Costs (F) Bradley Lake Audit fees 8,500 6,540 1,960 8,500 0 8,500 3/15/2004 9:15 AM Page 3 of 4 C:\Documents and Settings\showell\Local Settings\Temporary Internet Files\OLK306\2005BradleyBdgt-Draft1.xlsSchedule B-Budget Detail BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B 31-Dec-03 FY2003 FY2003 FY2004 FY2004 FY2005 BUDGET ACTUAL VARIANCE BUDGET YTD ACTUAL BUDGET (F) Bradley Lake PMC Legal 10,000 16,093 (6,093) 40,000 41,494 40,000 (F) Bradley Lake Arbitrage Report 6,000 6,000 0 6,000 5,800 6,000 (F) Bradley Lake Trustee fees 20,000 17,595 2,406 20,000 8,797 20,000 PMC Costs 44,500 46,228 (1,728) 74,500 56,091 74,500 Bond Refunding Costs Reimburseable costs Refunding Costs 0 0 0 0 0 0 TOTAL FERC 920 244,500 246,228 (1,728) 274,500 256,091 274,500 FERC 924 - Property Insurance (D) Insurance Premiums 405,000 456,729 (51,729) 555,000 553,824 590,000 (D) Homer Electric Insurance 30,000 52,759 (22,759) 30,000 29,620 60,000 (D) Risk Assessment 0 0 0 25,000 38,075 0 435,000 509,488 (74,488) 610,000 621,519 650,000 FERC 928 - Regulatory Commission Expenses (E) FERC administrative fees 106,000 114,214 (8,214) 150,000 0 126,000 (E) FERC Instrumentation Data Collection 26,812 (26,812) 16,619 (E) Seismic Survey Spillway 0 0 12,247 (E) Contractual Engineer - FERC license issues 31,500 15,617 15,883 31,500 3,572 31,500 (E) Spillway Seepage Water and Pressure Study 80,000 18,043 61,957 64,130 11,293 25,000 217,500 174,687 42,813 245,630 43,731 182,500 TOTAL BRADLEY LAKE BUDGET 2,474,436 2,316,682 157,754 3,231,906 2,123,209 3,209,811 3/15/2004 9:15 AM Page 4 of 4 C:\Documents and Settings\showell\Local Settings\Temporary Internet Files\OLK306\2005BradleyBdgt-Draft1 .xisSchedule B-Budget Detail BRADLEY LAKE MONTHLY UTILITY CONTRIBUTION SCHEDULE C PERCENT —_FY94 FY95, FY96 FY97 FY98 FY99 FY2000 FY2001 FY2003 FY2004 FY2005 FY2005 POWER PURCHASER SHARE TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL | INCREASE CHUGACH ELECTRIC 30.4% 4,231,644 4,231,644 © 3,968,670 3,947,190 4,016,052 4,208,532 3,591,372 3,796,956 4,980,308 4,486,766] 4,660,994] 174,228 MUNICIPALITY OF ANCHORAGE 25.9% 3,605,256 3,605,256 3,381,203 3,362,902 3,421,560 3,585,552 3,059,748 3,234,396 3,731,900 3,822,602] 3,971,040] 148,438 AEGaT 25.8% 3,591,336 3,591,336 3,368,148 3,349,918 3,408,360 3,571,704 3,047,940 3,221,916 3,717,578 3,807,842] 3,955,704] 147,862 GOLDEN VALLEY ELECTRIC 16.9% 2,352,456 2,352,456 2,206,267 2,194,326 2,232,600 2,339,604 1,996,512 2,110,476 2,435,162 -2,494,286| 2,591,136 96,850 CITY OF SEWARD 1.0% 139,200 139,200 190,548, 129,842 132,108 138,444 118,140 124,884 144,098 147,590 153,324 5,734 700.0% 13,019,692 13,919,802 19,054,836 12,964,178 19,210,680 19,640,806 11,613,712 12,408,026 14,400,206 __14,759,086| _15,302,198| 573,112 FY2003 Fy2004 PERCENT FY99 FY2000 FY2001 = MONTHLY = MONTHLY | — FY2005 FY2005, POWER PURCHASER SHARE MONTHLY MONTHLY MONTHLY AVERAGE AVERAGE | MONTHLY | INCREASE CHUGACH ELECTRIC 30.4% 350,711 299,281 316,963 365,033 373,897 388,416 14,519 MUNICIPALITY OF ANCHORAGE 25.9% 298,796 254,979 269,533 310,999 318,550 330,920 12,370 AEG&T 25.8% 297,642 253,995 268,493 309,798 317,320 329,642 12,322 GOLDEN VALLEY ELECTRIC 16.9% 194,967 166,376 175,873 202,930 207,857 215,928 8,071 CITY OF SEWARD 1.0% 11,537 9,845 10,407 12,008 12,299 12,777 478 700.0% 7,153,653 7,040,669 229,923 COMPONENTS OF CHANGE IN CONTRIBUTION, FY2004 ANNUAL CONTRIBUTION 14,759,086 Revenue Changes (INCREASE) DECREASE IN BUDGETED INTEREST EARNINGS (36,222) Expenditure Changes INCREASE (DECREASE) IN BUDGETED O&M COSTS (22,092) INCREASE (DECREASE) IN PAYBACK TO R&C FUND 553,596 INCREASE (DECREASE) TRANSMISSION RELAYS REPLACEMENTS 200,000 INCREASE (DECREASE) VEHICLE PURCHASE (11,000) INCREASE (DECREASE) IN DEBT SERVICE 2,925 INCREASE (DECREASE) IN EXCESS EARNINGS TRANSFER (2,711) INCREASE (DECREASE) IN OPERATING RESERVE TRANSFER (111,400) Other IMMATERIAL ROUNDING DIFFERENCES 19 NET INCREASE(DECREASE) 573.115 FY2005 ANNUAL CONTRIBUTION 9/15/20049:15 AM C:\Documents and Settings\showell\Local Settings\Temporary Internet Files\OLK306\2005BradleyBdgt-Draftt xisSchedule C Utility Contrib BRADLEY LAKE R&C FUND DISBURSEMENTS AND REPAYMENTS SCHEDULE D ACTUAL Disburse 890,667.09 27,719.72 262,253.24 103,444.32 1,284,084.37 RECAP-GOVERNOR PROJECT R&C Fd 2,934,654.32 Construction Fd 1,233,316.00 Total Project 4,167,970.32 HEA Projected FY06 Costs 102,481.00 Estimated Total ACTUAL Repay _ (222,666.77) (6,929.93) (65,563.31) (25,861.08) ACTUAL TO REPAY at 06/30/03 668,000.32 20,789.79 196,689.93 77,583.24 PROJECTED Disburse 616,827.00 50,000.00 $ (821,021.09) $ 963,063.28 PROJECTED Repay (222,666.77) (6,929.93) (65,563.31) (180,067.83) (12,500.00) PROJECTED TO REPAY at 06/30/04 445,333.55 13,859.86 131,126.62 514,342.41 37,500.00 PROJECTED Disburse 2,214,383.00 PROJECTED Repay (222,666.77) (6,929.93) (65,563.31) (733,663.58) (12,500.00) PROJECTED TO REPAY at 06/30/05 222,666.77 6,929.93 65,563.31 1,995,061.83 25,000.00 PROJECTED Disburse PROJECTED Repay (222,666.77) (6,929.93) (65,563.31) (733,663.58) (12,500.00) PROJECTED TO REPAY at 06/30/06 PROJECTED 1,261,398.25 12,500.00 PROJECTED Repay (707,802.50) (12,500.00) $ (720,302.50) $ PROJECTED TO REPAY at 06/30/07 553,595.75 | $ PROJECTED Disburse PROJECTED PROJECTED TO REPAY Repay at 06/30/07 (553,595.75) $ (553,595.75) $ 3/15/20049:03 AM C:\Documents and Settings\bapplegate\Local Settings\Temporary Internet Files\OLK2D\2005BradleyBdgt-Draft! Schedule D R&C Disb & Repay BRADLEY LAKE BUDGET ACTIVITY BY ACCOUNT SCHEDULE G Rev Fund O&M Fund Debt Fund Op Reserve R&C Cap Reserve Total 6/30/2003 Actual Balance 1,759,535 684,300 8,676,539 535,000 4,036,938 12,834,000 28,526,312 A (0) 23% of Annual O&M Budget FY2004 Budget - Revenues 14,759,087 - 14,759,087 Interest 1,559,025 15 408,845 1,967,885 Transfers to O&M (3,351,584) 3,351,584 - - Transfers to Debt Service (12,273,400) 12,273,400 - Payback of R&C Fund (487,728) 487,728 0 2004 O&M Reduisitions (3,231,906) - (3,231,906) 2003 O&M Requisitions (433,143) (433,143) 2003 Equipment Sales 2,689 2,689 Renewals/Replacements = (666,827) - (666,827) To Excess Earnings fund (202,711) (202,711) Snowmachines (11,000) (11,000) Refund of prior year surplus (1,762,224) (251,157) (2,013,381) Debt Payments (20,949,939) (20,949,939) Increase Op Reserve (111,381) 111,400 19 6/30/2004 Projected Balance 0 (0) (0) 646,400 4,266,683 12,834,000 17,747,083 a 20.001% of Annual O&M Budget FY2005 Budget - Revenues 15,332,200 - 15,332,200 Interest 1,595,262 329,097 1,924,359 Transfers to O&M (3,209,814) 3,209,814 - - Transfers to Debt Service (12,276,325) 12,276,325 - Payback of R&C Fund (1,041,324) 1,041,324 - 2005 O&M Redauisitions (3,209,814) (3,209,814) 2005 Capital Requistions (200,000) 200,000 - - Renewals/Replacements (200,000) - (2,204,383) - (2,404,383) To Excess Earnings fund (200,000) (200,000) Debt Payments : (12,276,325) (12,276,325) Increase Op Reserve - - : 6/30/2005 Projected Balance (0) (0) (0) 646,400 3,432,721 12,834,000 16,913,121 Assumption: . For purpose of budget cash flows, July 01 debt service should be 20.00% of Annual O&M Budget is assumed to be disbursed on June 30 projected - 20.14% 3/15/20049:15 AM C:\Documents and Settings\showell\Local Settings\Temporary Internet Files\OLK306\2005BradleyBdgt-Draft1 .xisSchedule G-Cash balances BRADLEY LAKE PROJECTED CASH FLOWS - 2004 Projected Balance 6/30/2004 2005 BUDGET Debt Service - Principal Debt Service - Interest Total Debt Service OPERATING FUND Operating Budget-Sch B Renewals & Replacements-Sch A Contingency 0% TOTAL REQUIREMENTS INTEREST INCOME Capital Reserve R&C Fund Operating Reserve Debt Service Fund Operating Fund SUBTOTAL Revenue Fund INTEREST INCOME YTD INTEREST INCOME INTEREST RECEIVED FUND BALANCES Projected REVENUE FUND Beginning Balance in Revenue Fund Revenue from Power Purchasers Transfer to Debt Service - Principal Transfer toDebt Service - Interest To Operating Fund-Sch BO&M To Operating Fund-Sch A Capital Replacement To Renewal and Contingency Fund Arbitrage transfer Increase Operating Reserve Interest Accrued Interest Accrual Reversal Interest Receipts & Transfers End of Month Balance 0 OPERATING FUND Balance Operating Fund Interest Interest transferred Transfers from Revenue Fund-Renewals&Replacements Transfers from Revenue Fund-O&M Transfers from Operating Reserve To Operating Reserve Transfer from R&C fund Renewals & Replacements Operating Requistions (0) DEBT SERVICE FUND July August September October November December January February March April May June EY Total July 5,800,000 5,800,000 3,238,163 3,238,163 6,476,325 0 0 0 0 0 3,238,163 0 0 0 0 0 9,038,163 12,276,325 772,726 392,726 182,726 187,726 245,350 182,726 196,226 182,726 182,726 187,726 182,726 313,704 3,209,814 100,000 0 0 100,000 0 200,000 0 0 0 0 0 0 0 0 0 0 0 0 0 15,686,139 79,143 79,631 80,122 80,616 81,113 81,614 82,117 79,649 80,141 80,635 81,132 81,632 967,545 26,311 26,473 26,637 28,406 28,582 28,758 30,540 30,729 30,918 25,067 25,101 21,575 329,097 3,986 3,394 3,415 3,436 3,457 3,479 3,500 3,391 3,412 3,433 3,454 3,475 41,833 @ © ® 0} © @ 17,883 17,994 18,105 18,216 18,329 558 91,085 109,440 109,499 110,174 112,459 113,152 113,850 134,041 131,763 132,575 127,351 128,016 107,241 1,429,559 3,616 1,850 1,214 1,237 1,422 1,854 1,222 1,188 1,195 1,218 1,210 1,004 18,229 113,056 111,348 111,388 113,695 114,574 115,704 135,262 132,950 133,770 128,568 129,226 108,245 1,447,788 8,356 12,631 17,856 24,687 31,206 35,928, 8,946 14,947 20,187 27,032 33,951 648 236,375 121,412 123,979) 129,243 138,383 145,780 151,632, 144,208 147,898 153,957 155,601 163,177 108,893 1,684,163 121,412 245,391 374,635 513,017 658,797 810,429 954,637 1,102,535 1,256,492 1,412,093 1,575,270 1,684,163 950,000 Estimated Int Rec at 6/30 810,429 1,760,429 873,734 0 1,363,313 2,060,901 2,913,384 4,028,028 5,091,567 5,862,122 1,328,961 2,438,866 3,293,679 4,410,669 5,539,578 0 Oy 1,277,683 1,277,683 1,277,683 1,277,683 1,277,683 1,277,683 1,277,683 1,277,683 1,277,683 1,277,683 1,277,683 1,277,683 15,332,200 (2,900,000) (2,900,000) (5,800,000) (3,238,163) (3,238,163) (6,476,325) (12,276,325) (772,726) (392,726) (182,726) (187,726) (245,350) (182,726) (196,226) (182,726) (182,726) (187,726) (182,726) (313,704) (3,209,814) (100,000) 0 0 0 0 (100,000) 0 0 0 0 0 0 (200,000) (260,331) (260,331) (260,331) (260,331) (1,041,324) (200,000) (200,000) 0 0 8,356 12,631 17,856 24,687 31,206 35,928 8,946 14,947 20,187 27,032 33,951 648 236,375 (130,663) (105,712) (236,375) 950,000 0 0 0 0 0 645,262 0 0 0 0 1,595,262 709,804 1,363,313 2,060,901 2,913,384 4,028,028 5,091,567 5,862,122 1,328,961 2,438,866 3,293,679 4,410,669 5,539,578 © © (11,566,521) © 103,616 105,466 106,680 107,916 109,338 111,193 101,222 102,409 103,604 104,822 106,032 O) 7,036 3,616 1,850 1,214 1,237 1,422 1,854 1,222 1,188 1,195 1,218 1,210 1,004 18,229 (11,193) (11,193) (7,036) 100,000 0 0 0 0 100,000 0 0 0 0 0 0 200,000 772,726 392,726 182,726 187,726 245,350 182,726 196,226 182,726 182,726 187,726 182,726 313,704 3,209,814 0 100,000 0 0 0 0 0 0 0 0 0 0 0 100,000 0 0 0 (100,000) (100,000) 0 0 (100,000) 0 0 0 0 (100,000) 0 0 0 0 0 0 (200,000) (772,726) (392,726) (182,726) (187,726) (245,350) (182,726) (196,226) (182,726) (182,726) (187,726) (182,726) (313,704) __ (3,209,814) 0 103,616 105,466 106,680 107,916 109,338 111,193 101,222 102,409 103,604 104,822 106,032 7,036 7,036 @ ) © ©) ) ©) © — CADocurf¥nts ant Batiigs\bappegdlbcal SettihysPPamporaryItethEt Files\ORHAIO005BradieyBAR-Drattt SehoStie | CF-2005 Page 1 of Balance Debt Service Fund Schedule | 3/15/20049:04 AM BRADLEY LAKE PROJECTED CASH FLOWS - 2004 Projected Balance 6730/2004 Interest Interest transferred Transfers from Revenue Fund Payment of Debt Service © OPERATING RESERVE Balance Operating Reserve Interest Interest transferred Transfers to Operating Fund Transfer from Operating Fund 646,400 CAPITAL RESERVE FUND Balance Capital Reserve Fund Interest Transfer to Revenue Fund Interest transferred 12,834,000 RENEWAL & CONTINGENCY FUND Balance in Renewal & Contingency Fund Transfer from Revenue Fund-R&C Payback Requisitions Interest Interest transferred 4,266,683 Assumptions: ‘Amount moved to operating fund = 1/12 of O&M expenses plus contingency minus carryforward available Interest payments move from Revenue Fund to Debt Service Fund on June 1 & December 1 1/2 of annual principal payments are drawn from Revenue Fund on December 1 & June 1 Interest receipts are in July & January R&C Fund is reimbursed in 4 equal annual payments Operating Reserve Requirement increased at beginning of June to meet first month operating deficit if greater than reserve amount Schedule | FY05 R&C Improvements are per projected schedule for governor per HEA from R&C fund. Payback is over 4 years and is included in Utilities contribution. The payback is transferred from the revenue fund on 6/30/05 Prior year surplus(deficit) is refunded(billed & received) prior to fiscal year end. Page 2 of 2 July August September October November December January February March April May June EY Total July 0) © © 0) (0) 0) 17,883 17,994 18,105 18,216 18,329 558 91,085 0 0 (91,085) 0 0 0 0 0 0 6,138,163 0 0 0 0 6,138,163 12,276,325 0 0 0 0 0 (3,238,163) 0 0 0 0 (9,038,163) (12,276,325) ) 0) ©) ©) ©) ©) 2,917,883 2,935,877 2,953,981 2,972,198 2,990,526 91,084 91,084 ©) 646,400 550,386 553,780 557,195 560,631 564,088 567,567 549,900 553,291 556,703 560,136 563,590 646,400 667,066 3,986 3,394 3,415 3,436 3,457 3,479 3,500 3,391 3,412 3,433 3,454 3,475 41,833 (21,167) (21,167) (20,666) (100,000) 0 0 0 0 0 0 0 0 0 0 0 (100,000) 0 0 0 0 0 0 0 0 0 0 0 100,000 100,000 550,386 553,780 557,195 560,631 564,088 567,567 549,900 553,291 556,703 560,136 563,590 667,066 667,066 646,400 12,834,000 12,913,143 12,992,774 13,072,896 13,153,512. 13,234,626 13,316,239 12,916,117 12,995,766 13,075,907 13,156,542 ‘13,237,674 12,834,000 —13,319,306 79,143 79,631 80,122 80,616 81,113 81,614 82,117 79,649 80,141 80,635 81,132 81,632 967,545 0 0 (482,239) (482,239) (485,306) 12,913,143 12,992,774 13,072,896 13,153,512 ‘13,234,626 —«13,316,239 «12,916,117 12,995,766 13,075,907 13,156,542 ‘13,237,674 ‘13,319,306 «13,319,306 12,834,000 4,266,683 4,292,994 4,319,468 4,606,436 4,634,842 4,663,423 4,952,512 4,983,053 5,013,781 4,064,861 4,070,446 3,498,604 4,266,683 3,432,721 0 0 260,331 0 0 260,331 0 0 260,331 0 0 260,331 1,041,324 0 0 0 0 0 0 0 0 (1,240,170) (19,481) (596,943) (347,789) (2,204,383) 26,311 26,473 26,637 28,406 28,582 28,758 30,540 30,729 30,918 25,067 25,101 21,575 329,097 0 0 0 4,292,994 4,319,468 4,606,436 4,634,842 4,663,423 4,952,512 4,983,053 5,013,781 4,064,861 4,070,446 3,498,604 3,432,721 3,432,721 3,432,721 3/15/20049:04 AM C:\Documents and Settings\bapplegate\Local Settings\Temporary Internet Files\OLK2D\2005BradleyBdgt-Draft1 Schedule | CF-2005 Analysis of effect of amendment to FY04 O&M budget on Utility Contributions Percentage Share FY04 Utility Contribution-Original Budget effect of FY03 surplus refund Increase in Operating Reserve Requirement Increase in R&C Fund Payback Budget additions-O&M costs Snow machines Increase in arbitrage transfer Increase in projected interest earnings FY04 Utility Contribution-Amended Net Increase for year Monthly payment increase (effective 4/1/04) CITY OF CEA MOA AEG&T GVEA SEWARD Total 30.40% 25.90% 25.80% 16.90% 1.00% 1.00 4,043,750.00 3,445,164.00 3,431,868.00 2,248,008.00 133,020.00 13,301,810.00 274,664.00 234,007.00 233,103.00 152,692.00 9,035.00 903,501.00 17,146.00 14,608.00 14,551.00 9,532.00 564.00 56,401.00 98,933.00 84,289.00 83,963.00 54,999.00 3,254.00 325,438.00 87,157.00 74,255.00 73,969.00 48,452.00 2,867.00 286,700.00 3,344.00 2,849.00 2,838.00 1,859.00 110.00 11,000.00 824.00 702.00 699.00 458.00 27.00 2,710.00 (39,055.00) (33,271.00) (33,147.00) (21,715.00) __ (1,286.00) (128,474.00) 4,486,763.00 _3,822,603.00__3,807,844.00__2,494,285.00 _ 147,591.00 __14,759,086.00 443,013.00 377,439.00 375,976.00 246,277.00 14,571.00 1,457,276.00 147,671.00 125,813.00 125,325.33 82,092.33 4,857.00 485,758.67 Forcasted FY03 surplus used in budget prep BRADLEY LAKE HYDROELECTRIC PROJECT Schedule A REVENUES, EXPENSES & CHANGES IN SURPLUS. REVENUES UTILITY CONTRIBUTIONS INTEREST INCOME EXCESS FROM BOND PROCEEDS REFUND OF COST OF ISSUANCE FROM BONDS. SALE OF VEHICLE AEA SETTLEMENT MISCELLANEOUS INCOME EXPENSES OPERATIONS. RENEWALS/REPLACEMENTS PURCHASE NEW VEHICLE TRANSFER TO OPERATING RESERVE BOND REFUNDING COSTS. DEBT SERVICE (net of Capital Reserve Reductions) ARBITRAGE TRANSFER REFUND OF PRIOR YEARS SURPLUS CURRENT YEAR SURPLUS (DEFICIT) BEGINNING SURPLUS ENDING SURPLUS (DEFICIT) BALANCE SHEET ASSETS REVENUE FUND OPERATING FUND RECEIVABLES LIABILITIES RPL LIABILITIES SURPLUS OTHER INFORMATION OPERATING RESERVE * MONTHLY CONTRIBUTIONS * Required to be 20% of budgeted operating expense "AMENDED FY98 FY99 FY00 FY02 FY2003 FY03 FY2004 ACTUALS ACTUALS ACTUALS ACTUALS BUDGET ACTUALS BUDGET 13,210,675 13,843,841 11,813,741 13,765,790 14,409,214 14,409,218 14,759,086 1,845,862 1,837,883 1,801,425 1,772,285 1,382,409 1,840,739 1,559,059 37,008 0 0 0 0 0 1,477 0 0 0 0 0 0 0 0 0 0 0 0 2,689 75,058,014 15,681,724 13,652,174 15,538,075 15,791,623 16,252,646 16,318, 14: 1,748,691 1,905,324 2,399,918 2,236,317 2,474,436 2,316,682 3,231,906 23,832 25,764 0 47,200 1,074,000 321,021 487,728 0 29,130 11,000 0 0 0 0 0 111,400 294,124 (283,289) (10,836) 0 0 0 0 13,017,785 13,746,181 11,779,859 12,273,450 12,268,075 12,268,075 12,273,400 27,976 34,110 20,600 142,219 200,000 163,420 202,711 2,013,381 15,112,408 75,428,090 14,189,541 14,699,186 16,016,511 15,098,328 18,331,526 (4,394) 253,634 (37,367) 838,889 (224,888) 1,154,318 (2,013,381 575,012 520,618 774,252 20,174 224,887 859,063 2,013,381 520,618 774,252 236,885 859,063 0 2,013,381 481,136 135,622 158,075 660,770 - 1,759,535 296,292 1,099,686 997,420 698,889 - 684,300 : 2,689 777,428 7,235,308 7,155,495 7,359,659 =__2,446,524 256,810 461,056 918,610 500,596 433,143, 520,618 774,252 236,885 859,063 : 2,013,381 777,428 7,235,308 7,155,495 7,359,659 _— 2,446,524 535,000 535,000 535,000 535,000 535,000 535,000 646,400 1,100,890 1,153,653 984,478 4,180,572 1,200,768 1,200,768 1,594,243 3/11/2004/2:52 PM, h:all\elaine\bradley2004 Bradley Budget-Amended Schedule B: BRADLEY LAI PERATIONS & MAINTENANCE FY2002 FY2003 FY2004 G/L ACCOUNT BUDGET BUDGET BUDGET SUMMARY HEA O&M Contract Total 1,193,300 1,042,100 1,511,900 CEA Dispatch and Substation/SVC Maintenance 73,000 68,000 73,000 Other O&M 461,034 467,336 516,876 Insurance Costs 304,800 435,000 610,000 Regulatory Costs 123,000 217,500 245,630 2,155,134 2,229,936 2,957,406 Administrative Costs 243,000 244,500 274,500 2,398,134 2,474,436 3,231,906 Bond Refunding Costs 0 0 0 2,398,134 2,474,436 3,231,906 Page 1of3 3/11/2004/2:52 PM, 2004 Bradley Budget-Amended Schedule B: G/L ACCOUNT E1201-53500-24301 E1201-53700-24301 E201-53800-24301 E1201-53900-24301 E1201-53900-24302 E1201-53900-24303 E1201-54000-000 E1201-54200-24301 E1201-54200-24302 E1201-54300-24301 E1201-54300-24302 E1201-54400-24301 E1201-54500-24301 E1201-55600-24301 E1201-55600-24306 E1201-55600-24307 E1201-55600-24308 E1201-55604-00000 BRADLEY LA HEA O&M Contract FERC 537 - Hydraulic Expenses HEA O&M Contract FERC 538 - Electric Expenses HEA O&M Contract HEA O&M Contract DIS Voice/Data Circuits (inc. space & power) DIS 2-way Radio Circuits & radio maint. HEA Circuits and Radio - To Bernice Lake CEA Circuits -Bernice Lake to Anchorage FERC 540 - Rents PERATIONS & MAINTENANCE FERC 535 - Operation Supervision & Engineering FERC 539 - Misc. Hydraulic Power Generation Expenses FY2002 FY2003 FY2004 BUDGET BUDGET BUDGET 80,300 94,200 192,800 80,300 94,200 192,800 10,300 19,600 39,900 10,300 19,600 39,900 433,300 354,100 63,800 433,300 354,100 63,800 111,900 148,100 210,900 0 10,000 10,000 0 7,000 7,000 90,000 90,000 90,000 27,684 28,746 28,746 229,584 283,846 346,646 Bradley Lake FERC land use fees (5% increase bu: 73,000 76,000 Ee ORO0ON HEA O&M Contract Boat Dock Repairs HEA O&M Contract FERC 542 - Maintenance of Structures Nuka Diversion Washout Repairs. HEA O&M Contract HEA O&M Contract HEA O&M Contract NOAA Weather Service SCS Snow Measurement FERC 544 - Maintenance of Electric Plant FERC 556 - System Control & Load Dispatching UAA Seismic monitoring and reporting USGS Streamguaging Page 2 of 3 73,000 76,000 108,000 54,800 39,000 35,300 0 0 0 54,800 39,000 35,300 FERC 543 - Maintenance of Reservoirs, Dams & Waterways 5,500 5,100 [NNZES/O00} 5,500 5,100 268,000 400,900 284,000 ___ 368,400 | FERC 545 - Maintenance of Misc. Hydraulic Plant 400,900 284,000 368,400 90,700 92,000 320,600 90,700 92,000 320,600 5,600 6,000 12,200 42,500 7,040 7,040 12,350 29,450 41,990 56,500 56,500 56,500 139,000 142,000 147,000 255,950 240,990 264,730 3/11/2004/2:52 PM, 2004 Bradley Budget-Amended Schedule B: BRADLEY LAk PERATIONS & MAINTENANCE FY2002 FY2003 FY2004 G/L ACCOUNT BUDGET BUDGET BUDGET FERC 562 - Station Expenses E1201-56200-24312 CEA SVC/Substation Maintenance Contract 73,000 68,000 73,000 73,000 68,000 73,000 FERC 571 - Maintenance of Overhead Lines E1201-57100-24301 HEA Overhead Line Maintenance 20,000 20,600 20,600 20,000 20,600 20,600 FERC 920 - Administrative Expense E1201-58300-00000 AEA Admin Fee 200,000 200,000 200,000 AEA Administrative Costs 200,000 200,000 200,000 PMC Costs E1201-58301-00000 Bradley Lake Audit fees 8,500 8,500 8,500 E1201-58302-00000 Bradley Lake PMC Legal 10,000 10,000 SNNAGG008 E1201-58303-00000 Bradley Lake Arbitrage Report 4,500 6,000 6,000 E1201-58305-00000 Bradley Lake Trustee fees 20,000 20,000 20,000 PMC Costs 43,000 44,500 74,500 TOTAL FERC 920 243,000 244,500 274,500 FERC 924 - Property Insurance E1201-58401-00000 PMC Directors & Officer's Insurance 0 0 0 E1201-58401-00000 Insurance Premiums 270,000 405,000 §NNNNSS5/0003 E1201-58401-24301 Homer Electric Insurance 30,900 30,000 30,000 E1201-58402-00000 RSA with Risk Management 3,900 0 0 Risk Assessment 25,000 304,800 435,000 610,000 FERC 928 - Regulatory Commission Expenses E1201-58800-00000 FERC administrative fees 93,000 106,000 150,000 E1201-58801-00000 Contractual Engineer - FERC license issues 30,000 31,500 31,500 E1201-58801-00000 Spillway Seepage Water and Pressure Study 80,000 64,130 123,000 217,500 245,630 TOTAL BRADLEY LAKE BUDGET 2,398,134 2,474,436 3,231,906 Page 30f3 3/11/2004/2:52 PM, 2004 Bradley Budget-Amended BRADLEY LAKE MONTHLY UTILITY CONTRIBUTION SCHEDULE C PERCENT FY2002 FY2003 FY2004 FY2004 POWER PURCHASER SHARE TOTAL TOTAL TOTAL INCREASE CHUGACH ELECTRIC 30.4% 4,184,800 4,380,394 4,486,763 106,369 MUNICIPALITY OF ANCHORAGE 25.9% 3,565,335 3,731,988 3,822,603 90,615 AEG&T 25.8% 3,551,573 3,717,576 3,807,844 90,268 GOLDEN VALLEY ELECTRIC 16.9% 2,326,417 2,435,160 2,494,285 59,125 CITY OF SEWARD 1.0% 137,658 144,096 147,591 3,495 100.0% _ 13,765,783 14,409,214 14,759,086 349,872 PERCENT FY2002 FY2003 FY2004 FY2004 POWER PURCHASER SHARE MONTHLY MONTHLY MONTHLY JINCREASE** CHUGACH ELECTRIC 30.4% 358,894 365,033 484,650 119,617 MUNICIPALITY OF ANCHORAGE 25.9% 305,768 310,999 412,909 101,910 AEG&T 25.8% 304,588 309,798 411,315 101,517 GOLDEN VALLEY ELECTRIC 16.9% 199,517 202,930 269,427 66,497 CITY OF SEWARD 1.0% 11,806 12,008 15,942 3,934 1,180,573 393,475 1,200,768] 1,594,243 | ** MONTHLY CHANGE EFFECTIVE WITH APRIL 2004 CONTRIBUTIONS. COMPONENTS OF CHANGE IN CONTRIBUTION FY2003 ANNUAL CONTRIBUTION 14,409,214 INCREASE IN BUDGETED INTEREST EARNINGS (176,651) INCREASE IN BUDGETED O&M COSTS 757,470 DECREASE IN PAYBACK TO RENEWAL AND CONTINGENCY FUND (586,272) PURCHASE OF SNOW MACHINES 11,000 INCREASE IN DEBT SERVICE 5,325 INCREASE IN OPERATING RESERVE REQUIREMENT 111,400 INCREASE IN ARBITRAGE TRANSFER 2,711 EFFECT OF REFUND OF FY03 SURPLUS USED IN FY03 BUDGET PREPARATION 224,889 FY2004 ANNUAL CONTRIBUTION 14,759,086 3/11/2004/2:52 PM,h;all\elaine\bradley\ 2004 Bradley Budget-Amended SCHEDULE D FY03 R&C Fund Payback Detail Description Funding Source Needle Repairs R&C Fund Runner Repairs R&C Fund SCADA R&C Fund Governor R&C Fund Payback of FY02 R&C Fund Distributions Needle Repairs R&C Fund Runner Repairs R&C Fund SCADA R&C Fund Governor R&C Fund Payback of FY03 R&C Fund Distributions Total Payback to R&C Fund Budget Actuals $ Amount $ Amount Variance 240,250.00 6,600.84 (233,649.16) 68,750.00 14,167.91 (54,582.09) 77,500.00 26,431.11 (51,068.89) 187,500.00 - 187,500.00 $ 574,000.00 $ 47,199.86 $ (526,800.14) 365,250.00 222,666.77 (142,583.23) 131,250.00 6,929.93 (124,320.07) 77,500.00 65,563.31 (11,936.69) 500,000.00 25,861.08 474,138.92 $1,074,000.00 $ 321,021.09 $ (752,978.91) $1,648,000.00 $ 368,220.95 _$(1,279,779.05) BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE E CHANGE CHANGE FY02 FY03 FY2003 FROM FY03 FROM '03 FY2004 ACTUALS BUDGET Actuals BUDGET ACTUALS BUDGET FERC 535 - Operation Supervision & Engineering HEA O&M Contract 139,794 94,200 146,889 98,600 45,911 192,800 Other 0 0 139,794 94,200 146,889 98,600 45,911 192,800 FERC 537 - Hydraulic Expenses HEA O&M Contract 8,909 19,600 4,705 20,300 35,195 39,900 Other 0 0 0 8,909 19,600 4,705 20,300 35,195 39,900 FERC 538 - Electric Expenses HEA O&M Contract 222,431 354,100 171,736 (290,300) (107,936) 63,800 222,431 354,100 171,736 (290,300) (107,936) 63,800 FERC 539 - Misc. Hydraulic Power Generation Expenses HEA O&M Contract 134,728 148,100 201,340 62,800 9,560 210,900 DIS Voice/Data Circuits (inc. space & power) 6,904 10,000 0 0 10,000 10,000 DIS 2-way Radio Circuits & radio maint. 127,935 7,000 0 0 7,000 7,000 HEA Circuits and Radio - To Bernice Lake 90,000 90,000 0 0 90,000 Other 389 0 0 CEA Circuits -Bernice Lake to Anchorage 28,746 28,746 0 0 28,746 269,956 283,846 320,086 62,800 26,560 346,646 FERC 540 - Rents Bradley Lake FERC land use fees (5% increase bu 68,078 76,000 34,628 32,000 73,372 108,000 68,078 76,000 34,628 32,000 73,372 108,000 FERC 542 - Maintenance of Structures HEA O&M Contract 28,160 39,000 32,442 (3,700) 2,858 35,300 Boat Dock Repairs 0 0 0 0 0 28,160 39,000 32,442 35,300 FERC 543 - Maintenance of Reservoirs, Dams & Waterways HEA O&M Contract 1,185 5,100 19,142 262,900 248,858 268,000 Misc. Maint. 4,140 0 0 0 5,325 5,100 19,142 262,900 248,858 268,000 FERC 544 - Maintenance of Electric Plant HEA O&M Contract 363,911 284,000 283,275 84,400 85,125 368,400 HEA - Transformer Fire 0 0 0 Page 1 of 3 3/11/2004/2:52 PM, 2004 Bradley Budget-Amended BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE E CHANGE CHANGE Fy02 FY03 FY2003 FROM FY03 FROM '03 FY2004 ACTUALS BUDGET Actuals BUDGET ACTUALS BUDGET 363,911 284,000 283,275 84,400 85,125 368,400 FERC 545 - Maintenance of Misc. Hydraulic Plant HEA O&M Contract 83,225 92,000 81,286 228,600 239,314 320,600 Misc. 0 0 0 0 0 0 83,225 | 92,000 81,286 228,600 239,314 320,600 FERC 556 - System Control & Load Dispatching HEA O&M Contract 9,890 6,000 12,384 6,200 (184) 12,200 CEA Dispatch & Software 0 0 0 0 0 NOAA Weather Service 0 7,040 0 0 7,040 7,040 SCS Snow Measurement 8,450 29,450 30,673 12,540 11,317 41,990 UAA Seismic monitoring 56,500 56,500 56,500 0 0 56,500 USGS Streamguaging 136,290 142,000 141,690 5,000 5,310 147,000 USGS Minimum Flow Study 0 125 0 (125) 211,131 240,990 241,372 23,740 23,358 264,730 FERC 562 - Station Expenses CEA SVC/Substation Maintenance Contract 17,602 68,000 41,634 5,000 31,366 73,000 17,602 68,000 41,634 5,000 31,366 73,000 FERC 571 - Maintenance of Overhead Lines HEA Overhead Line Maintenance 38,752 20,600 9,083 0 11,517 20,600 38,752 20,600 9,083 0 11,517 20,600 T T Page 2 of 3 3/11/2004/2:52 PM, 2004 Bradley Budget-Amended BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE E CHANGE CHANGE Fy02 FY03 FY2003 FROM FY03 FROM ‘03 FY2004 ACTUALS BUDGET Actuals BUDGET ACTUALS BUDGET FERC 920 - Administrative Expense Payroll Cost for COI 0 AEA Admin Fee 200,000 200,000 200,000 0 0 200,000 Workers comp refund 0 0 AEA Administrative Costs 200,000 200,000 200,000 0 0 200,000 PMC Costs Bradley Lake Audit fees 6,592 8,500 6,540 0 1,960 8,500 Bradley Lake PMC Legal 15,551 10,000 16,093 30,000 23,907 40,000 Bradley Lake Arbitrage Report 6,000 6,000 6,000 0 0 6,000 Miscellaneous PMC Expenses 0 0 0 0 Budget, recording, courier 0 0 0 0 0 Bradley Lake Trustee fees 17,595 20,000 17,595 0 2,405 20,000 PMC Costs 45,738 44,500 46,228 30,000 28,272 74,500 Bond Refunding Costs Costs to be reimbursed at closing Oo 0 0 0 Refunding Costs 0 0 0 0 0 0 | TOTAL FERC 920 245,738 244,500 246,228 30,000 28,272 274,500 FERC 924 - Property Insurance Insurance Premiums 317,096 405,000 456,729 150,000 98,271 555,000 Homer Electric Insurance 43,787 30,000 52,759 0 (22,759) 30,000 RSA with Risk Management 0 0 0 0 0 0 Risk Assessment 0 0 25,000 25,000 25,000 360,883 435,000 509,488 175,000 100,512 610,000 FERC 928 - Regulatory Commission Expenses FERC administrative fees 136,369 106,000 114,214 44,000 35,786 150,000 Contractual Engineer - FERC license issues 36,054 31,500 15,617 0 15,883 31,500 Spillway Seepage Water and Pressure Study 80,000 18,043 (15,870) 46,087 64,130 FERC Instrumentation and Data collection 0 26,812 0 (26,812) 0 Reimb from Construction Fund (prior year) 0 0 0 5 Year Inspection & Follow-up 0 0 0 172,423 217,500 174,686 28,130 70,944 245,630 TOTAL BRADLEY LAKE BUDGET 2,236,318 2,474,436 2,316,680 757,470 915,226 3,231,906 YTD BUDGET | Page 3 of 3 3/11/2004/2:52 PM, 2004 Bradley Budget-Amended BRADLEY LAKE OPERATIONS & MAINTENANCE Schedule F Budget vs Projected SUMMARY HEA O&M Contract Total CEA Substation/SVC Maintenance Other O&M Insurance Costs Regulatory Costs Administrative Costs Bond Refunding Costs FERC 535 - Operation Supervision & Engineering HEA O&M Contract Other FERC 537 - Hydraulic Expenses HEA O&M Contract Other FERC 538 - Electric Expenses HEA O&M Contract Fy02 ACTUALS 992,234 17,602 443,299 360,883 172,423 1,986,440 245,738 2,232,178 0 2,232,178 139,794 139,794 222,431 CHANGE FY2003 FY2003 FROM BUDGET ACTUALS BUDGET 1,042,100 953,199 (88,901) 68,000 41,634 (26,366) 467,336 391,445 (75,891) 435,000 509,488 at 217,500 174,686 man 2,229,936 | 2,070,452 (159,484) 244,500 246,228 1,728 2,474,436 | 2,316,680 (157,756) 0 0 0 2,474,436 | __ 2,316,680 146,889 146,889 (14,895) 354,100 171,736 (182,364) Page 1 of 4 3/11/2004/2:52 PM, 2004 Bradley Budget-Amended BRADLEY LAKE OPERATIONS & MAINTENANCE Schedule F Budget vs Projected Fy02 FY2003 FY2003 ACTUALS BUDGET ACTUALS 222,431 354,100 171,736 FERC 539 - Misc. Hydraulic Power Generation Expenses HEA O&M Contract 134,728 148,100 201,340 DIS Voice/Data Circuits (inc. space & power) 6,904 10,000 0 DIS 2-way Radio Circuits & radio maint. 9,189 7,000 0 HEA Circuits and Radio-To Bernice Lake 90,000 90,000 90,000 CEA Circuits-Bernice Lake to Anchorage 28,746 28,746 28,746 Other 389 320,086 FERC 540 - Rents Bradley Lake FERC land use fees (5% increase bu FERC 542 - Maintenance of Structures HEA O&M Contract Boat Dock Repairs FERC 543 - Maintenance of Reservoirs, Dams & Waterways Miscellaneous Maintenance HEA O&M Contract Nuka Diversion CHANGE FROM BUDGET 182,364 53,240 (10,000) (7,000) FERC 544 - Maintenance of Electric Plant HEA O&M Contract 363,911 | 284,000 283,275 HEA-Transformer fire repairs 0 0 284,000 FERC 545 - Maintenance of Misc. Hydraulic Plant HEA O&M Contract Misc. Page 2 of 4 3/11/2004/2:52 PM, 2004 Bradley Budget-Amended BRADLEY LAKE OPERATIONS & MAINTENANCE Schedule F Budget vs Projected FERC 556 - System Control & Load Dispatching HEA O&M Contract CEA Dispatch & Software NOAA Weather Service SCS Snow Measurement UAA Seismic monitoring USGS Streamguaging USGS Minimum Flow Study FERC 562 - Station Expenses CEA SVC/Substation Maintenance Contract FERC 571 - Maintenance of Overhead Lines HEA Overhead Line Maintenance FERC 920 - Administrative Expense Payroll cost for CO! AEA Admin Fee Workers comp refund AEA Administrative Costs PMC Costs Bradley Lake Audit fees Bradley Lake PMC Legal Bradley Lake Arbitrage Report Miscellaneous PMC Expenses Budget, recording, courier Bradley Lake Trustee fees PMC Costs Bond Refunding Costs Costs to be reimbursed at closing Refunding Costs TOTAL FERC 920 FY02 FY2003 ACTUALS | BUDGET 9,890 6,000 0 0 7,040 8,450 29,450 56,500 56,500 136,290 142,000 0 CHANGE FY2003 FROM ACTUALS BUDGET 12,384 6,384 0 ty) 0 (7,040) 30,673 1,223 56,500 0 141,690 (310) 125 241,372 125 (26,366) 26,366 (11,517) 11,517 200,000 200,000 200,000 0 0 0 200,000 200,000 200,000 0 6,592 8,500 6,540 (1,960) 15,551 10,000 16,093 6,093 6,000 6,000 6,000 0 0 0 0 0) 0 ) 17,595 20,000 17,595 (2,405) 45,738 44,500 46,228 1,728 0 0 0 0 0 0 0 245,738 244,500 246,228 1,728 Page 3 of 4 3/11/2004/2:52 PM, 2004 Bradley Budget-Amended BRADLEY LAKE OPERATIONS & MAINTENANCE Schedule F Budget vs Projected CHANGE FY02 FY2003 FY2003 FROM ACTUALS BUDGET ACTUALS BUDGET FERC 924 - Property Insurance Insurance Premiums 317,096 405,000 456,729 51,729 Homer Electric Insurance 43,787 30,000 52,759 22,759 RSA with Risk Management 0 0 0 435,000 509,488 FERC 928 - Regulatory Commission Expenses FERC administrative fees 136,369 106,000 114,214 8,214 Contractual Engineer - Bradley FERC Licensing 36,054 31,500 15,617 (15,883) FERC instrumentation Data Collection 26,812 26,812 Reimb from Construction Fund (prior year) 0 Spillway Seepage Water and Pressure Study 80,000 18,043 (61,957) 5 Year Inspection & Follow-up 0 172,423 174,686 Lin TOTAL BRADLEY LAKE BUDGET 2,236,318 2,316,680 157,756 Page 4 of 4 3/11/2004/2:52 PM, 2004 Bradley Budget-Amended BRADLEY LAKE BUDGET ACTIVITY BY ACCOUNT SCHEDULE G Rev Fund O&M Fund Debt Fund Op Reserve R&C Cap Reserve Total 6/30/2001 Balance 158,161 326,073 434,101 535,000 5, 010 12,834,000 27,287,345 Fy2002 Debt Payment 7/1/01 (8,434,100) (8,434,100) Revenues 13,765,790 13,765,790 Interest 1,772,284 (9) : 1,772,275 Transfers to O&M (2,572,597) 2,572,597 (0) Transfers to Debt Service (12,273,450) 12,273,450 . : ° 01 O&M Requisitions : = 2002 O&M Requisitions (2,199,780) (2,199,780) Vehicle Purchase . cs s Renewals/Replacements (47,200) (47,200) Payback of R&C Fund (47,200) 47,200 0 To Excess Earnings fund (142,219) (142,219) Reduction in Capital Res : . . : Debt Payments (3,724,225) (3,724,225) 6/30/2002 Balance 660,770 890 8,549,226 535,000 5,000,001 12,834,000 28,277,887 FY2003 Actual z Debt Payment 7/1/02 (8,549,225) (8,549,225) Revenues 14,409,218 14,409,218 Interest 1,840,384 : : 1,840,384 Transfers to O&M (2,398,320) 2,398,320 - Transfers to Debt Service (12,268,075) 12,268,075 ° : a 02 O&M Requisitions (500,596) (500,596) 2003 O&M Requisitions (1,883,184) (1,883,184) Purchase Vehicle (29,130) Renewals/Replacements - (1,284,084) (1,284,084) Payback of R&C Fund (321,021) 321,021 : To Excess Earnings fund (163,420) (163,420) Reduction in Capital Res : : : Debt Payments (12,268,075) (12,268,075) 6/30/2003 Actual Balance 1,759,535 684,300 a] 535,000 4,036,938 12,834,000 19,878,904 * (0) 23% of Annual O&M Budget FY2004 Budget : Revenues 14,759,087 - 14,759,087 Interest 1,559,025 15 408,845 1,967,885 Transfers to O&M (3,351,584) 3,351,584 : : Transfers to Debt Service (12,273,400) 12,273,400 - Payback of R&C Fund (487,728) 487,728 0 2004 O&M Requisitions (3,231,906) : (3,231,906) 2003 O&M Requisitions (433,143) 2003 Equipment Sales 2,689 Renewals/Replacements - (666,827) - (666,827) To Excess Earnings fund (202,711) (202,711) Snowmachines (11,000) Refund of prior year surplus (1,762,224) (251,157) (2,013,381) Debt Payments (12,273,400) (12,273,400) Increase Op Reserve (111,381) 111,400 19 6/30/2004 Projected Balance o (0) 1 646,400 4,266,683 12,834,000 18,217,669 ~ 20.001% of Annual O&M Budget Page 1 of 1 3/11/2004/2:52 PM, 2004 Bradley Budget-Amended 2004 BUDGET Debt Service - Principal Debt Service - Interest Total Debt Service OPERATING FUND Operating Budget Renewals & Replacements Contingency 0% TOTAL REQUIREMENTS INTEREST INCOME Capital Reserve R&C Fund Operating Reserve Debt Service Fund Operating Fund SUBTOTAL Revenue Fund INTEREST INCOME YTD INTEREST INCOME INTEREST RECEIVED FUND BALANCES REVENUE FUND Beginning Balance in Revenue Fund Revenue from Power Purchasers Transfer to Debt Service - Principal Transfer toDebt Service - Interest To Operating Fund To Renewal and Contingency Fund Arbitrage transfer Refund of Prior years surplus From Operating Fund Interest Accrued Interest Accrual Reversal Interest Receipts & Transfers End of Month Balance OPERATING FUND Balance Operating Fund Interest Interest transferred Transfers from Revenue Fund Transfers from Operating Reserve To Operating Reserve Renewals & Replacements Schedule | duly August September October November December January February March April May June EY Total duly 5,370,000 5,370,000 3,451,700 3,451,700 6,903,400 0 0 0 0 0 3,451,700 0 0 0 0 0 8,821,700 12,273,400 200,000 949,000 233,700 0 401,961 0 0 375,540 386,540 375,540 375,540 375,540 3,673,361 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 wwe 15,946,761 302,916 0 0 0 0 0 311,330 79,143 79,631 80,122 80,616 81,113 1,014,871 145,647 0 0 0 0 0 145,399 23,271 23,415 23,559 23,704 23,850 408,845 18,958 0 0 0 0 0 24,580 3,638 3,661 3,683 3,790 3,634 61,944 0 0 0 0 0 0 53,216 16,558 16,660 16,762 16,866 412 120,473 467,520 0 0 0 0 0 534,524 122,610 123,366 124,127 124,976 109,009 1,606,133 24,259, 6 6 3 3 0 10,072 3,204 2,309 2,359 1,158 1,214 44,592 491,779 6 6 3 3 0 544,596 125,813 125,675 126,486 126,134 110,223 1,650,724 21,014 34 65 20 22 14 166,533 24,571 30,122 26,803 34,330 714 304,241 512,793 40 71 23 25 14 711,129 150,384 155,797 153,288 160,464 110,937 1,954,966 512,793 512,833 512,904 512,927 512,951 512,965 1,224,095 1,374,479 1,530,276 1,683,564 1,844,029 1,954,966 975,176 512,965 1,488,142 1,442,000 1,759,535 3,407,659 4,283,352 5,013,430 5,889,109 6,764,790 1,503,764 3,109,687 4,008,993 4,914,775 4,373,199 5,601,374 1,759,535 0 1,108,484 1,108,484 1,108,484 1,108,484 1,108,484 1,108,484 1,109,407 1,107,561 1,108,484 1,594,243 1,594,243 1,594,243 14,759,087 (2,685,000) 0 (2,685,000) (5,370,000) (3,451,700) 0 (3,451,700) (6,903,400) (232,825) (232,825) (232,825) (232,825) (232,825) (232,825) (232,825) (232,825) (232,825) (400,398) (400,398) (455,364) (3,351,584) (487,728) (487,728) (202,711) (202,711) (1,762,224) (1,762,224) 0 0 0 0 0 0 0 0 24,571 30,122 26,803 34,330 4 116,540 0 (116,540) (116,540) 975,176 34 (145,582) 20 22 14 729,341 0 0 0 0 1,559,025 613,072 3,407,659 4,283,352 5,013,430 5,889,109 6,764,790 1,503,764 3,109,687 4,008,993 4,914,775 4,373,199 5,601,374 0 0 613,073, 684,300 717,136 967 97 177,925 8,792 241,617 474,447 334,936 183,530 (54,041) 1,158 684,300 10,243 24,259 6 6 3 3 0 10,072 3,204 2,309 2,359 1,158 1,214 44,592 (24,248) (10,066) ° (34,315) (10,243) 232,825 232,825 232,825 232,825 232,825 232,825 232,825 232,825 232,825 400,398 400,398 455,364 3,351,584 0 0 0 0 0 0 0 0 0 0 42,769 29,184 0 71,953 0 0 (55,000) (56,400) (71,953) (183,353) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Page 1 of 2 2004 Bradley Budget-Amended, 3/11/2004, 2:53 PM BRADLEY LAKE PROJECTED CASH FLOWS - 2004 Projected Balance 6/30/2003 ACTUAL 1,759,535 BRADLEY LAKE PROJECTED CASH FLOWS - 2004 Projected Balance 6/30/2003 Refund of Prior years surplus Operating Requistions 684,300 DEBT SERVICE FUND Balance Debt Service Fund Interest Interest transferred Transfers from Revenue Fund Payment of Debt Service OPERATING RESERVE Balance Operating Reserve Interest Interest transferred Transfers to Operating Fund Transfer from Operating Fund 535,000 CAPITAL RESERVE FUND Balance Capital Reserve Fund Interest Transfer to Revenue Fund Interest transferred 12,834,000 RENEWAL & CONTINGENCY FUND Balance in Renewal & Contingency Fund ‘Transfer from Revenue Fund Requisitions Interest Interest transferred 4,036,937 Assumptions: ‘Amount moved to operating fund = 1/12 of O&M expenses plus contingency minus carrytorward available Interest payments move from Revenue Fund to Debt Service Fund on June 1 & December 1 1/2 of annual principal payments are drawn from Revenue Fund on December 1 & June 1 Interest receipts are in July & January R&C Fund is reimbursed in 4 equal annual payments Operating Reserve Requirement increased at beginning of June to meet first month operating deficit if greater than reserve amount Schedule | July August September October November December January February March April May June EY Total July (251,157) (251,157) 000) (949,000) (233,700) 0 (401,961) 0 0 375, 86,540) }75,540) 175,540) 75,540) 3,673,361. o 717,136 967 97 177,925 8,792 241,617 474,447 334,936 183,530 (54,041) 1,158 10,243 10,243 a) 0 0 0 0 0 0 6,136,700 2,685,000 2,701,558 2,718,217 2,734,979 2,751,845 0 67,257 0 0 0 0 0 0 0 16,558 16,660 16,762 16,866 412 67,257 0 0 (67,257) 0 0 0 0 0 6,136,700 0 0 0 0 0 6,136,700 12,273,400 0 0 0 0 0 3,451,700) 0 0 0 0 821,700) 12,273,400) 0 0 0 0 0 6,136,700 2,685,000 2,701,558 2,718,217 2,734,979 2,751,845 67,257 67,257 (0) 535,000 535,000 535,000 535,000 590,000 590,000 590,000 590,000 593,638 597,299 614,614 589,220 535,000 664,806 0 0 0 0 0 0 0 3,638 3,661 3,683 3,790 3,634 18,406 0 0 0 (18,406) 0 0 0 0 0 0 0 0 0 (42,769) (29,184) 0 71,953) 0 0 0 0 55,000 0 0 0 0 0 56,400 0 71,953 183,353 535,000 535,000 535,000 590,000 590,000 590,000 590,000 593,638 597,299 614,614 589,220 664,806 664,806 646,400 12,834,000 12,834,000 12,834,000 12,834,000 12,834,000 12,834,000 12,834,000 12,834,000 12,913,143 12,992,774 13,072,896 13,153,512 12,834,000 ‘13,234,626 302,916 0 0 0 0 0 311,330 79,143 79,631 80,122 80,616 81,113 1,014,871 0 0 0 ___ 02,916) (311,330) (614,245) (400,626). 12,834,000 ‘12,834,000 ——:12,834,000 12,834,000 12,834,000 12,834,000 12,834,000 12,913,143 12,992,774 13,072,896 13,153,512 13,234,626 13,234,626 12,834,000 4,036,937 4,036,936 4,010,307 3,914,076 3,914,076 3,628,281 3,628,281 3,773,680 3,796,951 3,820,366 3,843,925 3,867,629 4,036,937 4,266,682 487,728 487,728 0 (26,630) (241,878) (285,794) (112,525) (666,827) 145,647 0 0 0 0 0 145,399 23,271 23,415 23,559 23,704 23,850 408,845 (145,647) 145,647 0 0 0 4,036,936 4,010,307 3,914,076 3,914,076 3,628,281 3,628,281 3,773,680 3,796,951 3,820,366 3,843,925 3,867,629 4,266,682 4,266,682 4,266,682 Page 2 of 2 2004 Bradley Budget-Amended, 3/11/2004, 2:53 PM