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Bradley Lake PMC Meeting Tuesday 02 -11-2003 1
, . Alaska Industrial Development and Export Auth AIDEAVAEA Alaska Energy Authority } 5 | [) | Nusa cam LL) AIDEA/AE, JU July 1, 2002 05 002 SVE, Holding O; Mr. Steve Haagenson. Chairman ™Pany Golden Valley Electric Association P.O. Box 71249 (758 Illizicis) Fairbanks, Alaska 99707 Dear Mr. Haagenson: Enciosea is the biannual insurance review performed by the State of Alaska, Division of Risk Management, for the Bradley Lake Hydroelectric Project. This review is required by the Alaska Energy Authority Power Revenue Bond Resolution. Art Copouios asked that a copy be provided tc you for your information. Please call me at 269-3021 if you have any questions. Sincerely, [Oar Ayph phe Brenda Applegate Accountant BA:ew H:\al!\ewertz\BradleyLake InsuranceReview.doc Enclosure cc: Mike Cunningham Art Copouios 813 West Northern Lights Boulevard * Anchorage, Alaska 99503 907 / 269-3000 * FAX 907 / 269-3044 * www.aidea.org if i i j TONY KNOWLES, GOVERNOR WIP IP ALASK u BH 1 ru] oo = DEPARTMENT OF ADMINISTRATION POVGONTIOETE JUNEAU, ALASKA 99811-0218 PHONE: (907) 465-2180 FAX: (907) 465-3690 d)E fF FI W F In) DIVISION OF RISK MANAGEMENT etd JUN 2 4 2002 “—~ May 14, 2002 AIDEASAE- Brenda Applegate Alaska Industrial Development and Export Authority 480 West Tudor Road Anchorage AK 99503 Dear Brenda: Re: Bradley Lake Hydroelectric Project - Insurance Review | have reviewed the property and casualty insurance programs protecting Bradley Lake Hydroelectric Project facilities and AIDEA/AEA for their related activities per bonding covenant sections 714(b), (c), & (d). For FY2002 Willis of Seattle, Inc. has placed an all risk (including perils of flood and earthquake) property policy providing $40 million per occurrence excess the $20 million underlying policy placed by ARECA which is excess the applicable $2 million self insured retention level. AIDEA/AEA project related activities also continue to be covered by the State of Alaska’s comprehensive casualty insurance program provided through this office with limits of $75 million. The reasonably available and affordable coverage limit in the current insurance market. AIDEA/AEA’s present property insurance program for the Bradley Lake Hydroelectric Project combined with the state’s comprehensive casualty program in the optimum combination and comply with the applicable bond resolutions. Please call if you have any questions. ye J. Scott Jordan Risk Manager oy. OF Fe n, 02-B17LH & Printed on recycled paper Alaska Industrial Development and Export Auth AIDEAVA a Alaska Energy Authority Facsimile Transmittal Lit, he LL LE Io TO: COMPANY: CEA ii Fax #: ( petit? ye FROM: i (Attn PL DATE: (-K2-07 @ 7B an. Number of pages including cover page: a Transmittal Contents: Comments: Notice: This facsimile may contain confidential information that is being transmitted to and is intended only for the use of the recipient named above. dissemination, distribution, or copying of this information by anyone other than the named recipient or his or her employees or agents is strictly prohibited. facsimile in error, please immediately destroy it and notify us by telephone at (907) 269-3000. BAAULIERYMiracsiniilel TransmittaliCover Pagelds 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 Reading, disclosure, discussion, If you have received this e Be = ¥ * ¥* Transmission Result Report (MemoryTX) ,@ 2003 9:01AM) * * * 1) AIDEA/ZAEA 2 Date/Time: Jan.22. 2003 9:00AM File Page No. Mode Destination Pg (s) Result Not Sent 1811 Memory TX 97624514 Pere Ok Reason for error E-1) Hang up or line fail —E.2) Busy E.3) No answer E.4) No facsimile connection ‘Aisha tchatcal Dmetaopmers ard Emon Nrerty PND NN 2 /\ ee Facsimile Transmittal re He le Coming hax COMPANY: CEA Y ree (FOR YSIY FROM: Go e DATE: jos Qian. Number of pages including cover page: a ‘Transmittal Contents: Notice: This facsimile may contain confidential information that is being transmitted to and is intended only for the use of the recipient named above. Reading, disclosure, discisssion, facsimile in error, please immediately destroy it and notify us by telephone at (907) 269-3000. Dc rn 813 West Northern Lights Boulevard » Anchorage, Alaska 99503 907 / 269-3000 * FAX 907 / 269-3044 + Toll Free (ALASKA ONLY) 884 / 300-0534 + wwwaidea org Bradley Lake Hydroelectric Project Martin River Airstrip Access Road Maintenance versus Removal Background The Martin River road was restored in 1996 in order to provide access to the Martin River Airstrip and thus provide aircraft carrying project staff with an alternative landing site, to be used in cases when weather conditions precluded safe landing and takeoff from the primary airstrip. See Aerial Photos of the facilities in question at the end of this document. The Martin River Airstrip is located along the East side of the Martin River delta down stream from the gravel borrow area used during the construction of the Bradley Lake Hydroelectric Project (Bradley Lake HEP). The gravel borrow area was temporarily diked-off from the river but the temporary dikes were left in place after Project construction was completed to function as fish rearing ponds in cooperation with ADF&G. This was an event of opportunity for ADF&G and the department agreed at the time that there would be no liability for dike maintenance or pond operation accruing to AEA and that when the dike finally is breached by the river, it would not be reconstructed. Water from the Martin River percolates through the dike into the ponds, flows through the ponds and exits to the North across the access road at the East end of the airstrip. The Martin River Airstrip Access Road has two bridges and two low-water crossings and traverses the tidal flat/ Battle Creek flood plain to the East of the Airstrip. At times the road is impassable due to flooding and/or high tide. Existing Conditions It is reported that since restoration of the Martin River road, the Airstrip has never been used for the intended purpose. In the winter, the road is not maintained open due to a lack of need for the airstrip in winter and due ice from tidal flooding. Maintenance of the road has been a problem because of changing stream flow conditions related to aggradation of the Martin River stream channel in the river delta/tidal flat adjacent to the Martin River dike, which, when combined with the effects of high tides and ice movement on the tidal flats along the course of this restored road results in flooding and erosion of the roadway. Specifically, the low water crossings, approved by the Federal Energy Regulatory Commission (FERC) and the Alaska Department of Fish and Game (ADF&G), have continually deteriorated since construction and granular material from the roadbed has been eroded and carried onto the adjacent Kachemak Bay tidal flats. In addition, it appears probable that continued aggradation of the streambed along the Martin River dike, if left un-checked, will eventually result in breaching of the dike. This will allow the Rev 01/17/03 Page | of 6 AEA Martin River Airstrip Access Road, Maintenance versus Removal river to reclaim the flood plain in the delta that was isolated by constructing the temporary dikes during construction of the Bradley Lake HEP. Restoration of the Martin River Airstrip access road after Bradley Lake HEP construction required submittal of an application for a non-capacity amendment to the project license from the Federal Energy Regulatory Commission (FERC) as well as permits from the U.S. Army Corps of Engineers (USACE) and the Alaska Department of Fish and Game (ADF&G). Concerns There are several concerns related to the Martin River Airstrip Access Road and Airstrip. The concerns include project license compliance, project facilities security, liability related to unknown third parties for a variety of reasons, and project operation and maintenance costs,. The license-related concern is that since both the Martin River Road and Airstrip are permitted and licensed components of the Bradley Lake HEP. It is AEA’s responsibility to maintain both these features in good condition. Failure to do so could result in citations from the FERC, USACE or ADF&G. The security concern is related to the difficulty in monitoring the Martin River airstrip, which is relatively remote and not visible from the power plant area. Small fixed wing or rotary wing aircraft landing there are difficult to see unless a staff person is actually at the airstrip or is driving by the area at the time the intruding aircraft is landing or taking off. This clearly represents an un-controlled entry point to the project and a potential security risk to the Bradley Lake HEP as a whole. The security risk ranges from personal injury to persons attempting to access project facilities for various “innocent” reasons to persons performing acts of vandalism with the intent to render the project inoperable. The third party liability concern is related to potential liability in the case of persons injured or killed in unauthorized use of the airstrip. The airstrip is commonly used by local hunters and guides even though the use is not authorized. This represents a potential liability to AEA and HEA that could run to several million dollars in a legal action should an unauthorized user of the airstrip be injured or killed when using the airstrip. Maintenance of the road and structures and airstrip in serviceable condition will be a sustained annual cost if license compliance is maintained. Some years, major maintenance or replacement will increase the cost and the question is “is it worth the maintenance costs to keep this project feature when it has never been used by the project’? There are practical alternatives available, such as using helicopter or boat transport or simply delaying the departure and arrival of personnel undergoing shift change. Rev 01/17/03 Page 2 of 6 AEA Martin River Airstrip Access Road, Maintenance versus Removal Given the above concerns it is recommended that AEA evaluate the current status of this project feature and make a decision as to whether it is in the Bradley Lake HEP’s best interest to: 1.) Increase the maintenance and monitoring effort expended on this feature to ensure it does not represent an environmental, safety or security liability for the project, or, 2.) Abandon the feature and remove the roadway, bridges and airstrip. This would require obtaining a license amendment prior to removing the road and airstrip. Evaluation Factors The listing presented below indicates the readily apparent pros and cons of retaining or removing the Martin River access road and airstrip from the Bradley Lake HEP based on subjective and qualitative factors presently known. Retain the Martin River Road and Airstrip - Cons- e Un-maintained or poorly maintained road/airstrip are potential environmental and safety liabilities. Cost of a single litigated loss in a small aircraft crash on the airstrip could run to over one million dollars. e Un-monitored airstrip is a potential security risk. A determined vandal could take the project out of service for several days to weeks. e Annual maintenance costs to maintain facility in environmentally compliant and safe condition could be substantial. e Eventual loss of these features is highly probable in the near future, with associated costs (unknown) to clean up area following flooding of the Martin River. Pros- e Airstrip remains available if case of an actual need for a secondary landing site ever occurs. e No need to file a second license amendment. Removal of the Martin River Road and Airstrip - Cons- e Will require non-capacity amendment of project with associated (minimum) risk of opening up project to regulatory scrutiny. Rev 01/17/03 Page 3 of 6 AEA Martin River Airstrip Access Road, Maintenance versus Removal e One time cost for removal and restoration will be large. Pros- e Following removal no additional burden on project staff to monitor and maintain features. e Environmental, safety and security liabilities eliminated. Discussion of Alternatives Restoring the Martin River Airstrip Access Road and Airstrip to fully serviceable condition compliant with the FERC license for the Bradley Lake HEP requires remedial work on bridges, low water crossings and the roadbed. The developing subsidence and sinkholes in the roadbed of the Battle Creek Bridge approaches needs to be corrected and the approaches regarded. In addition, the Battle Creek Bridge waterway approach channel requires reconstruction of the guide dike on the left bank upstream side. The remnant dike has lost nearly all of its material and the creek is eroding the road embankment along the bridge approach. The low water crossing in the Battle Creek flood plain and the low water crossing at the east end of the airstrip need regarding and reconstruction to allow vehicle and maintenance equipment access to the airstrip and to restore the eroded roadbed. Battle Creek Slough Bridge is apparently in serviceable condition but the approaches need sub-grade repairs and re-grading. The Martin River Airstrip Access Road requires re-grading and some reconstruction in the area where it traverses the tidal flat between Battle Creek and Battle Creek Slough. This area has been damage by ice and the creek high flows resulting from the November 2002 storms. The Martin River Airstrip needs re-grading and brush and trees that encroach into the aircraft operations safety area and safety surface along, and at each end of, the runway need to be trimmed or removed to below the safety surface. Signage indicating the airstrip is a restricted-use private airstrip needs to be installed at the airstrip. A security plan for the Martin River Airstrip and Access Road needs to be formalized consistent with the recently mandated National Dam Safety Act. Rev 01/17/03 Page 4 of 6 AEA Martin River Airstrip Access Road, Maintenance versus Removal Cost Considerations A definitive cost comparison of a one-time effort to remove the road and airstrip versus long term, annual maintenance costs (plus some cost for rehabilitation of the site following failure of the dike) is of value in determining the best course of action. Costs stated in the following paragraphs have not been definitively estimated but are based on order-of-magnitude cost parameters. The estimated cost to remove all the Martin River Access Road roadway embankment and bridges is around $200,000 to $300,000 depending on the level of restoration required along the road and at the bridges. Removal of the Airstrip would not be necessary as the runway is literally a graded gravel surface at the general elevation of the surrounding flood plain. Rendering the runway “unusable” and formally closing it with appropriate “Closed Runway” signage would cost in the range of $10,000 to $30,000. Remedial work required to restore the Martin River road, low water crossings and bridges to fully serviceable condition using construction materials available at the project storage yard would cost in the range of $100,000 to $200,000 and an additional $80,000 to $100,000 to replace decks and abutment timber walls at the two bridges. Experience the past decade would indicate awards from injury and death settlements related to aircraft crashes range form $250,000 to well over $1,000,000. This potential liability should be considered when determining whether the Martin River Airstrip Access Road and Airstrip are taken out of service. The estimated costs above can be refined when a program scope is better defined. Costs of mobilization and demobilization and equipment utilization by a contractor can be spread over a number of the tasks noted above, resulting in a lesser cost for a particular task. Rev 01/17/03 Page 5 of 6 AEA Martin River Airstrip Access Road, Maintenance versus Removal AERIAL PHOTOS OF MARTIN RIVER AIRSTRIP AND ACCESS ROAD Kachemak Bay ot Intersection with Bradley 4 z Lake Dam Access Road Battle Creek Bridge Low Water Crossing at end of Airstrip Low Roadway Section Battle Creek Slough Bridge Low Water Crossing Martin River Emergency Airstrip Kachemak Bay Old Gravel Borrow Area, Now Unattended Fish Ponds Martin River Dike Rev 01/17/03 Page 6 of 6 AEA To: Bradley Lake BPMC From: O&D Committee Date: 1-22-04 The Bradley Lake O&D Committee requests the following extraordinary maintenance, operating, and capital expense for the 2004 budget: Summary: Budget Item Budget Request | Timing Bradley Lake Dam Left $100,000.00 Spring/Summer 2003 Abutment Area Repairs Nuka Diversion Repairs $50,000.00 Summer 2003 Battle Creek Repairs $10,000.00 Summer 2003 Middle Fork Diversion $20,000.00 Summer 2003 Repairs Kachemak Creek Gauging | $26,000.00 Summer 2003 Station Martin River Road and $100,000.00 Summer 2003 Airstrip Repairs Martin River Road and $10,000.00 Spring 2003 Airstrip Transport Study On-Site Civil Project $48,000.00 Spring 2003 Manager Digitize and Control Project | $50,000.00 Spring 2003 Drawings and Manuals DSM Upgrade $50,000.00 Summer 2003 Slip Rings $50,000.00 Capital Spring 2003 Total 2004 O&D $464,000.00 Committee O&M Budget requests: Total 2004 O&D $50,000.00 Committee Capital Budget requests: Timing/Justification/Details: Bradley Lake Dam Left Abutment Area Repairs Timing: Spring/summer 2003 Budget request: $100,000.00 Justification: Items a-f - FERC required work Item g - Economic benefit of additional water input to reservoir Item h - Will only be done if prior work indicates the need FEMA Funding: Partial FEMA reimbursement possible items a-d. Scope of Work: a- b- Restore and re-grade the maintenance access bench along the left abutment area. Grade embankment upper slopes in area affected by wave erosion during high reservoir in November 2002. This is to remove dangerous steep embankment section at the top of the slope where the embankment was undercut by wave erosion during the high reservoir condition. Armor the embankment above the maintenance bench with either rip rap or the ENKA-mats from the old construction camp storage area or with riprap to prevent further wave erosion. After grading the upper embankment slope this may be found not to be required. A seismic survey of the area will be done to determine where bedrock surface is relative to the slope surface and stop-log storage pad. It may be practicable to simply re-grade the slope and allow erosion to reach equilibrium rather than rip rapping the slope. Remedial grading of the slopes below the maintenance access bench as required and place small riprap to fill any depressions and holes around large riprap as required to reduce erosion and improve the surface for equipment operation. Continue annual trash removal efforts with modified removal procedures. Remove “floating trash” using existing equipment, bulldozer and loader, but do not run equipment on newly graded embankment. Instead remove material using winch and/or additional summer staff as required. Perform a seismic survey of the area adjacent to the stop-log storage area to determine location of bedrock. Using HEA staff and project equipment, grade the main access road to the dam to create positive drainage collection and control for surface runoff in the area West of the gatehouse. Runoff from the area above the rock cut and from up grade on the road collects along the toe of the rock cut and flows over the bank to the downstream side of the dam. Divert this water to the reservoir for power production. h- Only if needed and based on results of prior work, consider relocating the Stop-Log and Float storage to near the Gatehouse. This is optional and will depend on what is done to grade and stabilize the embankment on the reservoir side of the pad. If the embankment slope is not rip rapped and the stable slope cuts into the safety margin of the pad, then the practicable solution to stop-log storage would be to construct a new pad near the gatehouse and move the stop-logs. Nuka Diversion Timing: Summer 2003 Budget request: $50,000.00 Justification: Based on last available data, if Nuka drainage flows were reduced so that only the required minimum of 5 cfs were released to the Nuka River, an additional 2100 acre feet of additional water with a value of $63,000.00 to $126,000.00 could be diverted to the project for power generation. Nuka repairs will be needed every 3-5 years and this repair is part of normal maintenance activities. FEMA Funding: Partial FEMA reimbursement possible items a-c. Scope of Work: The Nuka Glacier melt water pool moraine is constantly changing. This results in the outlet channel to Bradley Lake having variation in flows from month to month and year to year that is mainly due to how much the morainal deposits have shifted in a given time period. Ice damage to the Nuka Diversion structure that controls flow to the NPS lands to the East of the Nuka Pool has resulted in loss of gabion training walls and structure downstream from the Nuka Diversion Structure. Also the operating handle on one of the bypass valves (shear gate) has been either taken away by ice or dropped to the bottom of the diversion forebay. Both bypass pipes are operating at higher than minimum required flow so it is thought the valves are both full open. The scope consists of the following: a- Repair Diversion Weir gabions and downstream training walls. b- Recover the missing valve operating handle and check condition of shear gates. Perform remedial maintenance if required. c- Restore diversion channel to Bradley Lake from Nuka Pool. This will require either a labor crew with shovels if the amount of material to move is minimal, or a tracked excavator if the amount of material is large. Battle Creek Repairs Timing: Summer 2003 Budget request: $10,000.00 Justification: Economic benefit of additional water input to reservoir. FEMA Funding: No Scope of Work: Battle Creek diverts to Bradley Lake just below the falls. The diversion dike has deteriorated near the base of the falls and allows a large amount of water at high flows to flow to the old channel away from Bradley Lake. Either repairing this dike or making a modification in the bedrock channel near the base of the falls will ensure water is diverted to Bradley Lake at all flow levels. The scope consists of the following: a- Perform remedial work on Battle Creek Falls to train water into the diversion channel. This is work that can be done by a crew of laborers in a few days. Middle Fork Diversion Timing: Summer 2003 Budget request: $20,000.00 Justification: FERC required. FEMA Funding: No Scope of Work: The Middle Fork Diversion is experiencing erosion at the right bank of the channel below the downstream (lower) drop structure stilling pool. The stream is confined in a channel constructed through bedrock but the banks of the channel downstream from the lower drop structure are composed of soil materials overlying bedrock. The soil materials are being eroded at high stream stages. The erosion may or may not be a problem depending on where bedrock is relative to the eroded bank surface. There is no immediate danger to the diversion channel at this time but the erosion needs to be monitored. Also, the bedrock surface needs to be located by use of seismic techniques. If the bedrock surface is not close to the present limits of erosion, then erosion protection work will be required in the near future. If the bedrock is hear the erosion limit then it would be practicable to let the erosion advance to the bedrock. The scope consists of the following: a- Continue to monitor the erosion situation by visual inspection on several occasions in Summer 2003. b- Perform seismic survey to locate bedrock in the erosion zone during summer of 2003. c- Evaluate erosion after observations and seismic information is in hand and design erosion control program if needed. Kachemak Creek Gauging Station Timing: Spring/Summer 2003 Budget request: $26,000.00 Justification: Improve inflow forecasting. FEMA Funding: No Scope of Work: A new precipitation gauge monitoring site at Kachemak Creek would allow for more accurate flow predictions of water available for power generation. Kachemak Creek is the largest flow input into the Bradley Lake. Additional upgrades would be made to sites to allow real-time data monitoring. Martin River Road and Airstrip Repairs Timing: Summer 2003 Budget request: $100,000.00 Justification: Minimum FERC required work. Additional work is being deferred in consideration of the possibility that the road will be removed. FEMA Funding: Partial FEMA reimbursement possible for items a and b. Scope of Work: The Martin River road and Airstrip must be maintained, as it is a licensed project feature. If policy changes take away the need for the Airstrip, it can be taken out of service and abandoned contingent on FERC approval. If the decision is made to abandon the airstrip, maintenance of the road and airstrip will be required until the FERC license is amended. a- Perform remedial work to correct subsidence/sinkholes in roadbed at East and West approaches to the Battle Creek Bridge and re-grade the approaches. b- Perform erosion control work at left (West) abutment of Battle Creek bridge; place rip rap and/or armor stone protection along left bank of waterway approach area to prevent further erosion of embankment and to improve the hydraulic conditions at entrance to bridge waterway. c- Remove brush and trees within the aircraft operations safety area and safety clearance surface limits along runway and at ends of runway. d- Install signs indicating private airstrip. e- Review and revise maintenance policy/procedures regarding the emergency airstrip. Airstrip should be inspected regularly as part of the project features inspection such as when project staff drive to the dam for the regular inspection when the road to the dam is open. Aerial inspections of the project should include a swing by the airstrip. f- | Review aeronautical charts and FAA documents to ensure the airstrip is indicated as private, unattended. g- Review and reissue policy for personnel transport by air and use and operation of the Martin River Emergency Airstrip. Martin River Road and Airstrip Transport Study Timing: Spring 2003 Budget request: $10,000.00 Justification: The airstrip has not been used, maintenance costs are high, increasing, and ongoing, it is difficult to maintain and monitor from the project, there is liability associated with continued maintenance of an unmanned airstrip, and other lower cost alternatives may be available for the project. See attached information describing the advantages and disadvantages of removing or maintaining the Martin River Road. If the study identifies suitable transport alternatives, an amendment to the FERC permit requesting approval to remove airstrip and access road from the project will be considered. Scope of Work: Evaluate transport alternatives to the Martin River airstrip. Alternatives include helicopter access, developing a written no-fly policy in certain wind and weather conditions, vehicle/boat, and US Coast Guard in emergency conditions. FEMA Funding: No On-Site Civil Project Manager Timing: Summer 2003 Budget request: $48,000.00 Justification: HEA staff will be focused on Needle repair job and other ongoing maintenance activities. Additional temporary staffing is needed due to the large amount of Civil work and activities. FEMA Funding: No Scope of Work: Manage Civil work and coordinate logistical related project activities. Digitize and Control Project Drawings and Manuals Timing: Ongoing Budget request: $50,000.00 Justification: Drawings can be digitized for approximately $3-5/drawing. This effort will ensure better records can be maintained, utilized, and managed during upcoming major construction project on Governor. Scope of Work: HEA will coordinate digitization effort and will extend existing document control procedures to manuals. Under a separate budget line item, AEA will organize its internal Bradley documents and cross-reference AEA's and HEA's drawing list. Slip Rings Timing: Immediately Budget request: $50,000.00 Capital Justification: These parts have a 6-7 month lead time for replacement necessitating the need for an on-site spare. Scope of Work: HEA will order and stock necessary spare parts. ALASKA ENERGY AUTHORITY BRADLEY LAKE FINAL CONSTRUCTION LIST REPORT OF ACTIVITY (A) (B) (Cc) (D) (C) - (D) SETTLEMENT (A) + (B) 12131102 AGREEMENT Adjustment/ Revised Payments thru Estimate ITEM PUNCHLIST Reallocation Estimate 12/31/02 to Complete Fish Study/Mitigation-COMPLETE 220,000.00 (17,217) 202,782.90 202,782.90 - Fish Water SCADA - Construction 100,000.00 15,639 115,639.15 115,639.15 - COMPLETE Moose Mitigation Fund - COMPLETE 185,215.00 575 185,790 185,790.16 - Diversion Tunnel - COMPLETE 5,000.00 (693) 4,307 4,307.45 - Powerhouse Floor/Paint - COMPLETE 5,000.00 (1,583) 3,417 3,417.07 - SVC Spares 145,000.00 (145,000) - - - Equipment - COMPLETE 15,000.00 (6,879) 8,121 8,121.48 - Misc Engineering 40,000.00 - 40,000 - 40,000.00 Fishwater Bypass Cleanup - COMPLETE 325,000.00 (12,931) 312,069 312,069.23 - ADIT Access Modification - COMPLETE 18,000.00 (4,761) 13,239 13,238.77 - Building Roof Modification - COMPLETE 45,000.00 22,038 67,038 67,038.14 - Airfield Road Access - COMPLETE 35,000.00 (5,416) 29,584 29,584.46 - Cold Weather Modification 5,000.00 - 5,000 294.53 4,705.47 Rip Rap Upstream Face of Left Dam - CON 175,000.00 (91,010) 83,990 83,989.85 - Approved Workorders unfinished at 3/94 155,244.00 13,823 169,067 158,983.83 10,083.17 B018 Roof-Wood Storage ($2,925) B019 Parapit Wall/Gate ($9,990) B021 Fishwater SCADA ($0) Penstock Condensation : : - - - Governor Instability Study 145,000.00 1,021,400 1,166,400 823,906.70 342,493.30 System Analysis Equip at SVCs 150,000.00 (150,000) - - - Contingency 290,844.00 352,771 643,615 - 643,615.34 Transfer trip schemes - Old Invoices 170,500.00 - 170,500 155,225.36 15,274.64 AEA Operating Costs 70,000.00 : 70,000 55,535.82 14,464.18 Brown & Root Retainage 102,958.00 (102,958) - - - Interest on Retainage 100,000.00 (100,000) - - - Previously approved punchlist 2,502,761 787,800 3,290,561 2,219,924.90 1,070,636.10 Control System Modifications 970,480.00 (787,800) 182,680 - 182,680.00 L 3,473,241 - 3,473,241 E 2,219,924.90 1,253,316.10 h:all\elaine\bradley\BLCONSTO3.xls - Punchlist 12-31-02 ALASKA ENERGY AUTHORITY BRADLEY LAKE CONSTRUCTION REPORT OF ACTIVITY ONGOING ACTIVITY BCO10 AEA Operating Costs BCO11 Misc Credits/Int on Retainage BCO12 AEA Misc Contracts BCO13 AEA Services AEA Costs BCO20 Engineering BCO30 Bechtel BCOSO Camp Catering & Support BCO60 Turbines/Generators BCO70 Communications BCO81 Equipment BCO82 Spares BC090 Stability Protection BC100 Powerhouse Floor/Paint BC110 Utility Support & Modifications BC120 Diversion Tunnel BC130 Fish Study/Mitigation BC140 Fishwater Bypass Cleanup BC150 Construction Deficiencies BC160 SCADA Other costs COMPLETED BEFORE 9/30/93 Other Construction Boundary Survey Contaminated Soil Tasks complete by 9/93 Section 31 Costs Costs As of Activity As of Activity Activity Activity Activity Activity Activity Activity Activity Activity Incurred as of 11/30/93 12193-6194 6/30/94 FY95 FY96 FYS7 Fy98 FY99 FY2000 FY2001 FY2002 FY2003 12131102 12,216,272.00 97,841.47 = 12,314,113.47 34,656.30 61,741.36 3,894.85 856.60 34.79 65.16 220.27 12,415,582.80 - (67,629.15) (67,629.15)| (67,629.15) 3,341,053.41 - 3,341,053.41 3,341,053.41 2,186,787.00 22,167.61 2,208,954.61 2,208,954.61 17,744,112.41 52,379.93 17,796,492.34 34,656.30 61,741.36 3,894.85 856.60 34.79 65.16 - 220.27 - 17,897,961.67 39,477,794.47 103,408.64 — 39,581,203.11 70,658.91 39,651 ,862.02 19,907,922.00 7,773.00 — 19,915,695.00 19,915,695.00 15,984,653.00 38,326.34 — 16,022,979.34 16,022,979.34 14,161,242.00 14,161,242.00 14,161,242.00 1,385,093.00 251,274.00 1,636,367.00 6,388.99 56.63 1,642,812.62 1,131,645.00 14,284.55 1,145,929.55 28,059.12 1,599.19 2,382.18 5,739.30 1,183,709.34 17,250.00 3,286.20 20,536.20 | 278,669.98 1,729.18 300,935.36 15,270,991.98 187,520.34 15,428,512.32 5,691.05 5,539.35 15,439,742.72 : : 3,417.07 3,417.07 1,192,832.00 119,754.18 —1,312,586.18 378.15 22,414.39 10,961.37 1,346,340.09 240,896.00 240,896.00 1,794.23 56.63 2,456.59 245,203.45 32,148.00 30,399.35 62,547.35 | 116,696.32] 74,196.45] 262,830.61 80,082.70] 35,480.00 631,833.43 340,000.00 340,000.00 + 3,027.33 14,676.10 299,559.51 (90.28) 12,600.00 669,772.66 : 21,095.65 21,095.65 41,308.25 $5,413.34] 165,448.67 | 329,490.71] 194,413.73] 41,705.56 | 156,331.90] 215,195.62 58,627.46 | — 1,279,030.89 605,717.00 605,717.00 15,452.64 15,738.43 102,910.49 31,125.07 2,831.58 773,775.21 109,748,184.45 747,122.25 110,495,306.70 538,798.06 178,211.87 756,748.24 442,525.57 338,343.57 85,430.63 159,163.48 215,195.62 58,627.46 | 113,268,351.20 180, 700,129.00 180,700,129.00 180,700,129.00 240,454.00 240,454.00 240,454.00 720,236.00 720,236.00 720,236.00 181,660,819.00 - 181,660,819.00 - - - - - - 181,660,819.00 309,153,115.86 _ 799,502.18 _309,952,618.04 573,454.36 239,953.23 760,643.09 443,382.1 7 338,378.36 85, 495.79 159,163.48 215,415.89 58,627.46 | 312,827,131.87 2,255,000.00 315,082,131.87 H:\AINelaine\bradley\BLCONSTO3.xis Page 1 of 1 Rpt of Activity 112903, 12:20 PM ALASKA ENERGY AUTHORITY BRADLEY LAKE CONSTRUCTION REPORT OF ACTIVITY by "BC" Code (A) +(D) HEA FINAL Estimate Remaining W.O. Activity Workorder/ | APPROVED | Payments Adjustment & at Prior to Payments Payments Payments Payments Payments Payments Payments Total Contract # | PUNCHLIST Reallocation 6/8/00 3/20/96 711196-6/30/97 Fy98 Fy99 Fy2000 FY2001 Fy2002 FY2003 Payments BCO10 AEA Operating Costs 3,804.85 856.60 34.79 65.16 220.27 155,535.82 70,000 ($5,535.82) 14,464.18 : 3,804.85 856.60 34.79) 65.16 = 220.27 5 156,595.82 BCOtt — Interest on Retainage L e z | ___100,000 : (100,000.00) : : Ee : = = : a BCOS0 Brown & Root Retainage : = - 102,958 : (102,958.00) : : 2 : z : 5 - BCO70 Communications - Ground Relays 8023 6,388.69 56.63, 6,445.32 6400 (6445.32) a2 0.00 = 6,388.69, 56.63, = = = 6,445.32 BCOB1 Equipment - welding exhaust fan, 8040 2,382.18 5,739.30 8,121.48 Scaffold, snow plow 15,000 (@,121-48)| (6,878.52) : : = 2,382.18 5,739.30 : = 6,121.48 BCOB2 SVC Spares B039 : : : |___ 145,000 =: = 145,000.00. e iz a a 5 a a BCO90 System Analysis Equip at SVCs 8047 : 5,691.05 $5,539.95 41,230.40 750,000 (17,230.40) (138,770.00) (40) : : : 5,691.05 5,539.35, : 11,230.40, BC100 Powerhouse Floor/Paint 8038 : 3,417.07 5,000 CAI7.07) 11,583.00) (0.07): : 5 : 3417.07 = = BC110 Misc Engineering 40,000 - - : BC110 Construct Crickets - Close w/o Boz2 17,400 789.99 16,250.69 301.37 17,342.05, BC110 Work Platform Additions 8025 39,000 5,752.16 10,860.00, 16,412.16 96,400 (33,754.21) (22,645.79) 40,000.00 6,542.15 16,250.69 10,961.37 = : = 33,754.21 8C120 Diversion Tunnel HEA -Design & Install 8028 4,794.23 56.63 1,850.86 HEA Design & Construct (Closev B037 2,456.59 2,456.59 5,000 (4,307.45) (682.55) : : 1,704.23 56.63 2,456.59 = = 4,307.45 C130 Fish Study Northern Ecological Contract 96-003 3,120.00 42,900.00 30,454.45 35,480.00 120,954.45 US Dept of Interior - Streamguage — 9602900AK027 20,550.00 20,550.00 R. Wiliams 94-006 6.85 6.85 Misc. 243.50 4,437.24 40,628.25 42,908.99 190,000 (184,420.28) 11,637.69, 17,217.40 nl 3,970.35 64,887.24 80,062.70 35,480.00 : 184,420.29 BC131 Moose Mitigation Fund 575.10 485,215.06 185,790.16 705,215 (185,790.16) 375.16 (C00) : 575.10 185,215.06 = : = 185,790.16 - BC132 Waterfowl Monitoring Locher Interests 94-007 5,634.30 12,728.31 18,362.61 30,000 (18,362.61) (17,637.00) 039 : 5,634.30 12,728.31 = : = 18,362.61 8C140 _Fishwater Bypass Cleanup Bo41 299,559.51 (90.28)| 42,600.00 312,069.23 325,000 312,065.23) (12,531.00) C2 = = 299,559.51 (90.28)| : 12,500.00 312,060.23 BC150 ADIT Access Modification 8032 4,842.91 722.17 7,873.68, 13,238.77, 16,000 (13,238.77) 76723) : = 4,842.91 T2217 7,673.69, = : 13,238.77, BC151 Building Roof Modification B042 67,038.14 pu 000 (67,038.14) 22,038.14 = = = : 67,038.14 = : i BC152 Airfield Road Access (Complete) HEA. Airfield Road Access 033 12,172.65, 8,379.13 20,581.78 R. Willams 94-006 1,885.20 739.95 2,625.15 Locher 94-007 6,138.73 268.80 6,407.53 35,000 (23,564.48) (5415.54) = : 20,196.58 9387.88 = = = 28,504.46 BC153 Cold Weather Modification HEA - Design & Implement 8030 237.90 56.63 294.53 HEA - Construction (Close) Boss = 5000 (294.53) 4705.47 : 237.90 56.63 = = = 20453 BC154 Rip Rap Upstream Face of Left Dam Bo44 18,341.85 65,648.00 83,980.85 175,000 (63,989.85) (87,010.00) O15 : : : 18,341.85 65,648.00 : 3,989.05 BC155 Construction Deficiencies - Approved Workorders ints} AirlOi Fiters (w/o Closed) 8001 438,93 12,292.04 12,730.97 Service Water System 8006 1,964.11 336.24 2,300.35 Control Circuits (w/o closed) B008 - Powerhouse Lockers (closed) Bots 3,560.74 3,560.74 Repair Roof-Wood Storage 018 75.01 75.01 Repair Parapit WallGate Bo19 290.26 9,321.36 398.24 10,009.86 Modify Diesel Controls (closed) 020 2,824.58 2,824.58 Governor Improvement (closed) 8026 16,058.94 16,058.94 FuelDispenser (w/o Closed) 8029 1,044.73 56.63 4,101.36 H.AAINelaine\bradleyiBLCONSTO3 xls Page 1 of 2 PunchiListBC Code ALASKA ENERGY AUTHORITY BRADLEY LAKE CONSTRUCTION REPORT OF ACTIVITY by "BC* Code BC156 —_Penstock Condensation BC157 Governor Speed Instability Study HEA Chugach BC158 Transfer trip schemes - Old Invoices. BC159 Governor Replacement BC160 Fish Water SCADA - Program Devel Wiliams Locher Maritime Fish Water SCADA - Construction Contingency Workorder! Contract # 045, 046 046 B021 194-008-006 94-007-008 1/29/03, 12:20 PM Page2 of 2 H:\AlNelaine\bradley\BLCONSTO3.xis PunchiList BC Code (A) + (D) FINAL Estimate Remaining APPROVED Payments Adjustment & at Payments Payments Payments Payments Payments Payments Payments Payments Total PUNCHLIST_: Reallocation 6/8/00 3/20/96-6/30/96_| _7/4/96-6/30/97 FY98 Fy99 Fy2000 FY2001 Fy2002 FY2003 Payments 8 (48,667.81) 9,133.00 12,915.19 4,044.73, 56.63 23,652.52 734.48 = 48,661.81 - 5,232.69 245.78 5,478.47 212,784.51 122,798.56 41,459.78 156,331.90 215,195.62 58,627.46 807,197.83 (812,676.30) 222,370.00 (445,306.30) = = = 212,784.51 128,031.25 41,705.56 156,331.90 215,195.62 58,627.46 812,676.30 155,225.36 155,225.36 (155,225 .36)| = = 155,225.36 = = = 155,225.36 14,106.95 3,896.48 11,042.17 2,975.59 24,531.57 6,422.68 2,831.58 65,507.02 205.00 205,00 2,198.03 2,198.03 2,212.44 2,212.44 - 12,762.84 78,173.92 24,702.39 115,639.15 (185,767 .64)| 40,327.00 (5,434.64) 14,106.95, 3,506.48 15,452.64 15,738.43 102,910.49 31,125.07 2,831.58 = 18 = 193,156.00 484,000,00 = E a a E 3 < 119,924.90) (0.32) 4,253,315.78 43,822.65 443,362.17 338,378.31 3,473,241 1,253,315.78 BRADLEY LAKE HYDROELECTRIC PROJECT ANALYSIS OF COSTS AND CONTRIBUTIONS 12/31/02 Total Bonds State Total Construction Costs 312,827,132 156,413,566 156,413,566 Section 31 Costs 2,255,000 2,255,000 Costs incurred to date 315,082,132 158,668,566 156,413,566 Estimate to Complete 1,253,316 626,658 626,658 Estimated Total Construction Costs 316,335,448 159,295,224 157,040,224 Financing Costs Per 9/30/93 Calculation 12,921,538 6,460,769 6,460,769 Interest received 10/1/93 -6/30/94 (less 9/30/93 Accru: (454,058) (227,029) (227,029) Interest received 7/1/94 - 6/30/95 (238,100) (119,050) (119,050) Interest received 7/1/95 -6/30/96 (185,210) (92,605) (92,605) Interest Received 7/1/96-6/30/97 (153,567) (76,784) (76,784) Interest Received 7/1/97 - 6/30/98 (121,213) (60,607) (60,607) Interest Received 7/1/98-6/30/99 (116,226) (58,113) (58,113) Interest Received 7/1/99-6/30/2000 (33,249) (16,625) (16,625) Interest Received 7/1/00-6/30/2001 (155,453) (77,726) (77,726) Interest Received 7/1/01-06/30/02 (91,119) (45,559) (45,559) Interest Received 7/1/02-12/31/02 (11,375) (5,688) (5,688) Total Financing Costs 11,361,967 5,680,984 5,680,984 Total Project Costs 327,697,415 164,976,208 162,721,208 Contributions 328,235,202 165,260,157 162,975,045 Excess Contributions 537,787 283,949 253,837 h\all\elaine\aea\reports\BLCONSTO3.xIs, Cost Analysis 12-31-02 “4 1 16 18 19 2 -007 ve \s (c) Workorders/ | Payments Contracts | Priorto | Payments | Payments | Payments | Payments | Payments | Payments | Payments | Payments | P: ayments: 3/20/96 & after | 3/20/96 | 3/20/96-6/30/96] FY97 Fy98 Fy99 Fy2000 | Fy2001 | Fy2002 | FY2003 To Date 117,000.00 3,120.00 | 42,900.00] 39,454.45 | 35,480.00 120,954.45 20,550.00 20,550.00 20,550.00 6.85 6.85 6.85 42,908.99 843.50] 1,437.24] 40,628.25 42,908.99 18,362.61 5,634.30 | 12,728.31 18,362.61 198,828.45 9,604.65 |77,615.55 | 80,082.70 | 36,480.00 : 202,782.90 200,000.00 : 12,762.84 | 78,173.92| 24,702.39 115,639.15 200,000.00 = = 12,762.84 | 78,173.92 |_ 24,702.39 115,639.15 185,790.16 575.10 | 185,215.06 185,790.16 185,790.16 575.10 | 185,215.06 7 : = 185,790.16 1,794.23 1,794.23 1,794.23 48,205.77 56.63| 2,456.59 2,513.22 50,000.00 1,794.23, 56.63 | 2,456.59 : : 4,307.45 60,000.00 : 3,417.07, 3,417.07 60,000.00 - : 3,417.07 - : 3,417.07 175,000.00 zi = = = . 175,000.00 = : 2 : : 30,000.00 2,382.18 | _ 5,739.30 8,121.48, 30,000.00 = 2,382.18 | _5,739.30. = = 8,121.48 500,000.00 299,063.27 (90.28) 12,600.00 311,572.99 496.24 496.24 496.24 500,496.24 = = _| 299,559.51 (90.28) - 12,600.00 312,069.23 25,000.00 4,842.91 722.17| 7,673.69 13,238.77 25,000.00 4,842.91 722.17 | _7,673.69. = = 13,238.77 100,000.00 67,038.14 67,038.14 100,000.00. = =| 67,038.14 : : 67,038.14 20,551.78 12,172.65 | 8,379.13 20,551.78 2,625.15 1,885.20 739.95 2,625.15 6,407.53 6,138.73, 268.80 6,407.53 29,584.46 20,196.58 | 9,387.88 - - = 29,584.46 20,000.00 237.90 56.63, 294.53 20,000.00 237.90 56.63 = = : 294.53 82,500.00 18,341.85 | 65,648.00 83,989.85 82,500.00 = : 18,341.85 | 65,648.00 : 83,989.85 12,000.00] 438.93 12,292.04 12,730.97 2,800.00 1,964.11 336.24 2,300.35 3,560.74 | 3,560.74 3,560.74 3,000.00 75.01 75.01 2,000.00 | 290.26 9,321.36 398.24 10,009.86 2,824.58 | 2,824.58 2,824.58 50,000.00 | 14,106.95 3,696.48 | 11,042.17] 2,975.59 | 24,531.57 | 6,422.68) 2,831.58 65,507.02 2,198.03 2,198.03 2,198.03, 2,212.44 2,212.44 2,212.44 205.00 208.00 Page 1 of 2 HMilelaine\bradley\BLCONSTO3 xis Punchlist-ttem# LLL Workorders/ | Payments © Contracts Priorto | Payments | Payments | Payments | Payments | Pay yments | Payments | Payments | Payments | Payments 3/20/96 & after | 3/20/96 | 3/20/96-6/30/96] FY97 Fy98 Fy99 FY2000 FY2001 Fy2002 FY2003 To Date 17,342.05] 789.99 16,250.69 301.37 17,342.05 12,000.00 6,388.69 56.63 6,445.32 39,000.00] 5,752.16 10,660.00 16,412.16 16,058.94 | 16,058.94 16,058.94 8,000.00 1,044.73 56.63 1,101.36 172,996.78 | 43,822.55 27,280.59 | 26,527.27 | 26,628.11 | 25,471.05 | 6,422.68 | 2,831.58 : 158,983.83 27,000.00 7 27,000.00 = = = - : - 145,000.00 212,784.51 | 122,798.56 | 41,459.78 | 156,331.90 | 215,195.62] 58,627.46| 807,197.83 5,232.69 245.78 5,478.47 43,600.00 - 40,000.00 = 228,600.00 = = ~__| 212,784.51 | 128,031.25 | 41,705.56 | 156,331.90 | 215,195.62 | 58,627.46 | 812,676.30, 250,000.00 - 5,691.05 | 5,539.35 411,230.40 250,000.00 = = 5,691.05 | 5,539.35 : 11,230.40 173,853.00 155,225.36 155,225.36 173,853.00 = =| 155,225.36 = = = 155,225.36 70,000.00 50,464.15 | 3,894.85 856.60 34.79 65.16 220.27 55,535.82 70,000.00 50,464.15 | 3,894.85 856.60, 34.79 65.16 = 220.27 55,535.82 102,958.00 : - = = : 102,958.00 - - = - 2 : 100,000.00 - : 7 : : 100,000.00 - - : . : 7 2,782,607.09 | 43,822.55| 114,996.11 | 760,643.09 | 443,382.17 | 336,378.36 | 85,495.79 | 169,163.48 | 216,415.69 | 68,627.46 | 2,219,924.90 2,219,924.90 H:\AlNelaine\bradley\BLCONSTO3 xIs of2 Punchlist-Item# Page 2 ee TO; Bradley Lake PMC Members FROM: Shauna Dean AIDEA/AEA DATE: February 7, 2003 SUBJECT: Attachments for Bradley Lake PMC Packet Attached are two documents to be included in the PMC meeting scheduled for Tuesday, February 11, 2003. e DRAFT Audited Financial Statements and other Financial Information Operating and Revenue Funds June 30, 2002 and 2001 e Bradley Lake Budget Documents Please disburse to anyone else at your office that will be attending. If you have questions, please call me at (907) 269-3000. Thank you. ATTACHMENT 1 AUDITED FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION lira BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS JUNE 30, 2002 AND 2001 Parisena, Stromberg & Company A Professional Corporation Drain Audited Financial Statements BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS Anchorage, Alaska Independent Auditor's Report Balance Sheets Statements of Revenue, Expenses and Changes in Surplus Statements of Cash Flows Notes to Financial Statements Independent Auditor's Report on Additional Information Statements of Expenses Dypani Independent Auditor's Report Bradley Lake Project Management Committee Anchorage, Alaska We have audited the accompanying special-purpose balance sheets of the Bradley Lake Project Management Committee Operating and Revenue Funds (a project management committee) as of June 30, 2002 and 2001, and the related special-purpose statements of revenues, expenses and changes in surplus, and of cash flows for the years then ended. These financial statements are the responsibility of the Bradley Lake Project Management Committee. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. The accompanying special-purpose financial statements were prepared for the purpose of complying with, and in conformity with the trust fund accounting requirements specified in, the Alaska Energy Authority’s Power Revenue Bond Resolution, as discussed in Note A, and are not intended to be a presentation in conformity with generally accepted accounting principles. In our opinion, the special-purpose financial statements referred to above present fairly, in all material respects, the assets, liabilities and surplus of the Bradley Lake Project Management Committee Operating and Revenue Funds as of June 30, 2002 and 2001 and its revenue, expenses and changes in surplus and its cash flows for the years then ended, on the basis of accounting described in Note A. This report is intended solely for the information and use of the Bradley Lake Project Management Committee and is not intended to be and should not be used by anyone other than this specified D Parisena, Stromberg & Company, APC Anchorage, Alaska December 11, 2002 BRADLEY LAKE P... JECT MANAGEMENT COMMI1 . JE OPERATING AND REVENUE FUNDS Drax BALANCE SHEETS June 30, 2002 and 2001 ASSETS Current assets: Investments (Note B) Accounts receivable Total assets LIABILITIES AND SURPLUS Current liabilities: Due to other funds Accounts payable Total liabilities Surplus Total liabilities and surplus See accompanying notes to the financial statements. 2002 $ 1,359,659 $_ 1,359,659 $ 32,267 468.329 500,596 859,063 $_ 1,359,659 2001 $ 484,233 650 $__ 484.883 $ 19,460 445,249 464.709 20,174 $484,883 BRADLEY LAKE P | JECT MANAGEMENT COMMIT OPERATING AND REVENUE FUNDS E STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN SURPLUS Years ended June 30, 2002 and 2001 Dirait 2002 Variance Favorable 2001 Budget Actual (Unfavorable) Actual Revenue: Utility contributions $ 13,765,782 $13,765,790 $ 8 $12,488,023 Interest receipts 1,696,000 1,772,285 76,285 1,759,898 Excess from bond proceeds - - - 130,207 Other miscellaneous - - - 2.139 Total revenue 15,461,782 15,538,075 76,293 14,380,267 Expenses, fixed asset replacements and debt service: Operations and maintenance 3,207,134 2,425,736 781,398 1,957,262 Debt service 12,273.450 12,273,450 - 12,639,716 Total expenses, fixed asset replacements and debt service 15,480,584 14.699.186 781.398 14,.596.978 Excess (deficiency) of revenue over expenses, fixed asset replacements and debt service (18,802) 838.889 857.691 (216,711) Surplus, beginning of year 18.802 20.174 236.885 Surplus, end of year $ - $ 859,063 $ 20,174 See accompanying notes to the financial statements. 3 BRADLEY LAKE P.. J JECT MANAGEMENT COMMIT . WE OPERATING AND REVENUE FUNDS STATEMENTS OF CASH FLOWS Years ended June 30, 2002 and 2001 Dat Cash flows from operating activities: Excess (deficiency) of revenue over expenses, fixed asset replacements and debt service Adjustments to reconcile excess (deficiency) of revenue over expenses, fixed asset replacements and debt service to net cash provided by (used in) operating activities: Decrease (increase) in accounts receivable Increase in accounts payable Increase (decrease) in amounts due to other funds Net cash provided by (used in) operating activities Available cash and cash equivalents, beginning of year Available cash and cash equivalents, end of year Supplemental disclosure of cash flows information: Interest paid See accompanying notes to the financial statements. 4 2002 $ 838,889 650 23,080 12,807 875,426 484.233 $_ 1,359,659 $_7,448,440 nN iS iS —_ $ (216,711) (650) 19,058 (472.959) (671,262) 1,155,495 $484,233 $_ 8,044,716 BRADLEY LAKE Roccr MANAGEMENT commr1@r OPERATING AND REVENUE FUNDS NOTES TO FINANCIAL STATEMENTS June 30, 2002 and 2001 NOTE A: SIGNIFICANT ACCOUNTING POLICIES Description of Business: The Bradley Lake Project Management Committee (the Committee) was established pursuant to Section 13 of the Agreement for the Sale and Purchase of Electric Power (Power Sales Agreement) dated December 8, 1987. The purpose of the Committee is to arrange for the operation and maintenance of the Bradley Lake Hydroelectric Project (the Project), which became operational in September 1991, and the scheduling, production and dispatch of power. The members of the Committee include the Alaska Energy Authority (AEA) and the five purchasers under the Power Sales Agreement - Chugach Electric Association, Inc.; Golden Valley Electric Association, Inc.; the Municipality of Anchorage (Municipal Light & Power); the City of Seward (Seward Electric System); and the Alaska Electric Generation & Transmission Cooperative, Inc. (AEG&T). The Homer Electric Association, Inc. (HEA) and the Matanuska Electric Association, Inc. (MEA) are additional parties to the Power Sales Agreement but are included as power purchasers for purposes of representation while AEG&T has no direct vote as a consequence of the individual representation of HEA and MEA. Section 13 of the Power Sales Agreement delineates other Committee responsibilities, including: establishing procedures for each party's water allocation, budgeting for annual Project costs and calculating each party's required contribution to fund annual Project costs. Committee approval of operations and maintenance arrangements for the Project, sufficiency of the annual budgets and wholesale power rates and the undertaking of optional Project work requires a majority affirmative vote and the affirmative vote of AEA. The Power Sales Agreement extends until the later of: 1) 50 years after commencement of commercial operation or 2) the complete retirement of bonds outstanding under the AEA Power Revenue Bond Resolution along with the satisfaction of all other payment obligations under the Power Sales Agreement. Renewal options for additional terms exist. Establishment of Trust Funds: Article V, Section 502 of the Alaska Energy Authority's Power Revenue Bond Resolution established a Revenue Fund and an Operating Fund, including an Operating Reserve account, to be held by AEA. In actuality these funds, along with the Debt Service, Excess Investment Earnings (arbitrage), and various construction funds related to the Bradley Lake Hydroelectric Project are all held by the Corporate Trust Department of US Bank in Seattle, Washington. BRADLEY LAKE P___ JECT MANAGEMENT COMMIT - _E OPERATING AND REVENUE FUNDS NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 2002 and 2001 ) hi NOTE A: SIGNIFICANT ACCOUNTING POLICIES (Continued All deposits, including utility contributions and interest earnings, are made into the Revenue Fund, which transfers amounts approximately equal to one-twelfth of the annual operating and maintenance budget into the Operating Fund on a monthly basis. Additional transfers are made from the Revenue Fund to the Debt Service Fund in order to satisfy semiannual interest payments and annual principal payments on the Project's outstanding bonds payable. Interest earnings available for operations and maintenance are derived from the following funds: Debt Service Fund; Operating Reserve Fund; Operating Fund; Revenue Fund; Capital Reserve Fund; and the Renewal & Contingency Fund. Revenue and Expense Recognition: Utility contributions are recognized as revenue when due to be received under the terms of the Power Sales Agreement. Transfers from other funds are recognized when the transfer is made and interest earnings are recognized when received. Operating and maintenance expenses are recognized when incurred, while interest and principal transfers to Debt Service Fund are recognized when paid. Purchases of fixed asset replacements are expensed when purchased. Estimates: The preparation of the special-purpose financial statements of the Operating and Revenue Funds requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Income Taxes: The Bradley Lake Project Management Committee is exempt from income taxation under Section 501 (a) of the Internal Revenue Code. NOTE B: INVESTMENTS Substantially all of the balances in the following funds are invested in collateralized investment agreements through the trust department of US Bank. The specified interest rate for monies from the Operating and Revenue Funds invested in the agreements is 7.38% per annum. Balances at June 30, 2002 and 2001 are as follows: 002 2001 Operating Fund $ 698,890 $ 326,073 Revenue Fund 660.769 158,160 Total investments $1,359,659 484.2 BRADLEY LAKE P... JECT MANAGEMENT COMMIT . ~E OPERATING AND REVENUE FUNDS NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 2002 and 2001 NOTE B: INVESTMENTS (Continued Investments are sold as needed to cover operating requisitions submitted to the trustee and are therefore considered to be short-term and available for sale. Investments are presented at aggregate cost, which approximates market value. For purposes of the cash flow statements, management considers the full amount of the investment balance to be cash available for operations. NOTE C: MAJOR CONTRACTS AND AGREEMENTS During May 1994, the Alaska Energy Authority entered into the Master Maintenance and Operating agreement with the Committee. The purpose of the agreement is to establish contract administration and budgeting procedures for maintenance and operation contracts of the Bradley Lake Hydroelectric Project and to provide for the lease or other use of facilities and equipment in a manner consistent with the requirements of the Power Sales Agreement. The term of the Master Agreement is indefinite, remaining in effect until termination of the Power Sales Agreement or until AEA no longer legally exists. This agreement authorizes AEA to enter into any contracts necessary to perform operating or maintenance-type services to the Project, subject to the approval of the Committee. On behalf of the Committee, the AEA entered into an agreement with Chugach Electric Association, Inc. (CEA) in August, 1996, for the provision of all services necessary to dispatch the Bradley Project's electric power output. The dispatch agreement runs concurrently with the wheeling and related services contract entered into by and among the parties to the Power Sales Agreement in December 1987 and remains in effect for the term of the wheeling agreement unless CEA ceases to be the output dispatcher. In August 1996, the Alaska Energy Authority entered into an agreement with CEA on behalf of the Committee for the provision of maintenance services for the Daves Creek and Soldotna SVC Substations. BRADLEY LAKE orcr MANAGEMENT commit OPERATING AND REVENUE FUNDS NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 2002 and 2001 NOTE C: MAJOR CONTRACTS AND AGREEMENTS (Continued An operation and maintenance agreement dated February 11, 1994, was executed between Homer Electric Association, Inc. and the Alaska Energy Authority. This agreement provides for the operation and maintenance of the Bradley Lake Hydroelectric Project by Homer Electric Association, Inc. The agreement is through June 30, 2004 and continues from year to year thereafter, except upon written notice to terminate by either party. Notice of termination must be given one year in advance of the termination date. HEA is to be reimbursed for costs associated with the operation, maintenance and repair of the Project as determined in advance through the submission of an annual budget based upon prudent estimates and anticipated operation and maintenance costs. In August, 1996, the agreement was amended to separate the maintenance of the transmission facilities from the hydroelectric project. The transmission agreement continues from year to year, except upon written notice to terminate by either party. Notice of termination must be given six months in advance of termination dates. In June, 1999 the agreement was again amended to require HEA to provide communication services in addition to the other services. NOTE D: RELATED PARTY TRANSACTIONS During the years ended June 30, 2002 and 2001, costs incurred under the various contracts with related parties described in Note C were as follows: 2002 2001 Homer Electric Association, Inc. — operation, maintenance and communications $ 1,193,519 $ 1,001,155 Chugach Electric Association, Inc. — substation service maintenance $ 17,602 $ 42,987 For the years ended June 30, 2002 and 2001, Chugach Electric Association, Inc. provided dispatch services to the Committee at the budgeted amount which is zero. Dia Independent Auditor’s Report on Additional Information Bradley Lake Project Management Committee Anchorage, Alaska Our report on our audits of the special-purpose financial statements of the Bradley Lake Project Management Committee Operating and Revenue Funds for the years ended June 30, 2002 and 2001 appears on the page preceding the balance sheets. Those audits were conducted for the purpose of forming an opinion on the special-purpose financial statements taken as a whole. The supplemental special-purpose Statements of Expenses are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the special-purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the special- purpose financial statements taken as a whole. LDypani Parisena, Stromberg & Company, APC Anchorage, Alaska December 11, 2002 BRADLEY LAKE PR) (CT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS STATEMENTS OF EXPENSES Years ended June 30, 2002 and 2001 LDirani Expenses: Generation expense: Operation supervision and engineering Hydraulic operation Electric plant operation Hydraulic power generation operation FERC land use fees Structure maintenance Reservoir, dam, and waterway maintenance Electric plant maintenance Hydraulic plant maintenance System control and load dispatching Substation operation and maintenance Overhead line maintenance Total generation expense Administrative, general and regulatory expense: Insurance AEA administrative fee PMC costs Arbitrage expense Regulatory commission: FERC administrative fees FERC licensing Total administrative, general and regulatory expense Total operations and maintenance expenses Capital project reimbursement Total operations and maintenance expenses 2002 Variance Favorable 2001 Budget Actual (Unfavorable) Actual $ 80,300 $ 139,794 $ (59,494) $ 79,464 10,300 8,909 1,391 3,500 433,300 222,431 210,869 196,884 229,584 269,956 (40,372) 218,187 73,000 68,078 4,922 69,278 54,804 28,160 26,644 33,652 5,500 5,325 175 1,879 400,900 363,911 36,989 356,432 90,700 83,225 7,475 64,467 255,946 211,130 44,816 196,426 73,000 17,602 55,398 42,987 20,000 38,752 (18,752) 19,219 1,727,334 1,457,273 270,061 1,282,375 304,800 360,883 (56,083) 303,956 200,000 200,000 - 200,000 43,000 45,738 (2,738) 42,753 200,000 142,219 57,781 19,327 93,000 136,369 (43,369) 96,324 30,000 36.054 (6,054) 12527 870,800 921,263 (50,463) 674.887 2,598,134 2,378,536 219,598 1,957,262 609,000 47,200 561,800 - $3,207,134 $ 2,425,736 $ 781,398 $ 1,957,262 10 ATTACHMENT 2 BRADLEY LAKE HYDROELECTRIC PROJECT Schedule A 1/7103 FY98 Fy99 FY00 Fyo2 FY2003 FY03 ACTUALS ACTUALS ACTUALS ACTUALS BUDGET FORECAST REVENUES, EXPENSES & CHANGES IN SURPLUS REVENUES. UTILITY CONTRIBUTIONS 13,210,675 13,843,841 11,813,741 13,765,790 14,409,214 14,409,216 INTEREST INCOME 1,845,862 1,837,883 1,801,425 1,772,285 1,382,409 1,479,638 EXCESS FROM BOND PROCEEDS 37,008 0 O REFUND OF COST OF ISSUANCE FROM BONDS. O 0 O SALE OF VEHICLE 1,477 0 0 0 ° AEA SETTLEMENT 0 °O O 0 MISCELLANEOUS INCOME oO 0 oO oO oO 15,058,014 15,681,724 13,652,174 15,538,075, 15,791,623 15,888,854 14,732,3 EXPENSES OPERATIONS 1,748,691 1,905,324 2,399,918 2,236,317 2,474,436 2,361,183 2,945,206 RENEWALS/REPLACEMENTS 23,832 25,764 0 47,200 1,074,000 1,021,457 162,289 PURCHASE NEW VEHICLE O 29,130 oO TRANSFER TO OPERATING RESERVE oO 0 O 0 0 55,000 BOND REFUNDING COSTS 294,124 (283,289) (10,836) 0 0 0 oO DEBT SERVICE (net of Capital Reserve Reductions) 13,017,785 13,746,181 11,779,859 12,273,450 12,268,075 12,268,075 12,273,400 ARBITRAGE TRANSFER 27,976 34,110 20,600 142,219 200,000 164,571 200,000 15,112,408 15,428,090 14,189,541 14,699,186 16,016,511 15,844,416 15,635,895 CURRENT YEAR SURPLUS (DEFICIT) (54,394) 253,634 (537,367) 838,889 (224,888) 44,438 BEGINNING SURPLUS 575,012 520,618 774,252 20,174 224,887 859,063 ENDING SURPLUS (DEFICIT) 520,618 774,252 236,885 859,063 __0____ 903,501 BALANCE SHEET ASSETS REVENUE FUND 481,136 135,622 158,075 660,770 - 697,200 OPERATING FUND 296,292 1,099,686 997,420 698,889 : 206,301 RECEIVABLES - 777,428 1,235, 308 _ 1,155,495, 1,359,659 - 903,501 LIABILITIES & SURPLUS LIABILITIES 256,810 461,056 918,610 500,596 - SURPLUS 520,618 774,252 236,885, 859,063 = 903,501 777,428 1,235,308 7,155,495 1,359,659 903,501 OTHER INFORMATION OPERATING RESERVE * 535,000 535,000 535,000 535,000 535,000 535,000 590,000 MONTHLY CONTRIBUTIONS 1,100,890 1,153,653 984,478 1,180,572 1,200,768 1,200,768 1,108,484 * Required to be 20% of budgeted operating expense 2/7103/11:07 AM, h:all\elaine\bradley2004 Bradley Budget. xis 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 1,378,200 CEA Dispatch and Substation/SVC Maintenance 73,000 68,000 73,000 Other O&M 461,034 467,336 483,876 Insurance Costs 304,800 435,000 520,000 Regulatory Costs 123,000 217,500 245,630 2,155,134 2,229,936 2,700,706 Administrative Costs 243,000 244,500 244,500 2,398,134 2,474,436 2,945,206 Bond Refunding Costs 0 0 0 2,398,134 2,474,436 2,945,206 Page 1 of 3 2/7/03/11:08 AM, 2004 Bradley Budget.xls Schedule B: BRADLEY LAI 'PERATIONS & MAINTENANCE FY2002 FY2003 FY2004 G/L ACCOUNT BUDGET BUDGET BUDGET FERC 535 - Operation Supervision & Engineering E1201-53500-24301 HEA O&M Contract 80,300 94,200 192,800 80,300 94,200 192,800 FERC 537 - Hydraulic Expenses E1201-53700-24301 HEA O&M Contract 10,300 19,600 39,900 10,300 19,600 39,900 FERC 538 - Electric Expenses E201-53800-24301 HEA O&M Contract 433,300 354,100 63,800 433,300 354,100 63,800 FERC 539 - Misc. Hydraulic Power Generation Expenses E1201-53900-24301 HEA O&M Contract 111,900 148,100 210,900 E1201-53900-24302 DIS Voice/Data Circuits (inc. space & power) 0 10,000 10,000 E1201-53900-24303 DIS 2-way Radio Circuits & radio maint. 0 7,000 7,000 HEA Circuits and Radio - To Bernice Lake 90,000 90,000 90,000 CEA Circuits -Bernice Lake to Anchorage 27,684 28,746 28,746 229,584 283,846 346,646 FERC 540 - Rents E1201-54000-000 Bradley Lake FERC land use fees (5% increase bt 73,000 76,000 75,000 73,000 76,000 75,000 FERC 542 - Maintenance of Structures E1201-54200-24301 HEA O&M Contract 54,800 39,000 35,300 E1201-54200-24302 Boat Dock Repairs 0 0 0 54,800 39,000 35,300 FERC 543 - Maintenance of Reservoirs, Dams & Waterways E1201-54300-24301 HEA O&M Contract 5,500 5,100 214,300 E1201-54300-24302 Nuka Diversion Washout Repairs. 5,500 5,100 214,300 FERC 544 - Maintenance of Electric Plant E1201-54400-24301 HEA O&M Contract 400,900 284,000 288,400 400,900 284,000 288,400 FERC 545 - Maintenance of Misc. Hydraulic Plant E1201-54500-24301 HEA O&M Contract 90,700 92,000 320,600 90,700 92,000 320,600 FERC 556 - System Control & Load Dispatching E1201-55600-24301 HEA O&M Contract 5,600 6,000 12,200 E1201-55600-24306 NOAA Weather Service 42,500 7,040 7,040 E1201-55600-24307 SCS Snow Measurement 12,350 29,450 41,990 E1201-55600-24308 UAA Seismic monitoring and reporting 56,500 56,500 56,500 E1201-55604-00000 USGS Streamguaging 139,000 142,000 147,000 255,950 240,990 264,730 Page 2 of 3 2/7/03/11:08 AM, 2004 Bradley Budget.xls Schedule B: BRADLEY LAI '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 10,000 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 44,500 TOTAL FERC 920 243,000 244,500 244,500 FERC 924 - Property Insurance E1201-58401-00000 PMC Directors & Officer's Insurance 0 0 0 E1201-58401-00000 Insurance Premiums 270,000 405,000 465,000 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 25,000 304,800 435,000 520,000 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 2,945,206 Page 3 of 3 2/7/03/11:08 AM, 2004 Bradley Budget.xls BRADLEY LAKE MONTHLY UTILITY CONTRIBUTION SCHEDULE C PERCENT FY2002 FY2003 FY2004 FY2004 POWER PURCHASER SHARE TOTAL TOTAL TOTAL DECREASE CHUGACH ELECTRIC 30.4% 4,184,800 4,380,394 4,043,750 (336,644) MUNICIPALITY OF ANCHORAGE . 25.9% 3,565,335 3,731,988 3,445,164 (286,824) AEG&T 25.8% 3,551,573 3,717,576 3,431,868 (285,708) GOLDEN VALLEY ELECTRIC 16.9% 2,326,417 2,435,160 2,248,008 (187,152) CITY OF SEWARD 1.0% 137,658 144,096 133,020 (11,076) 100.0% 13,765,783 14,409,214 13,301,810 _ (1,107,404) PERCENT FY2002 FY2003 FY2004 FY2004 POWER PURCHASER SHARE MONTHLY MONTHLY MONTHLY jf DECREASE CHUGACH ELECTRIC 30.4% 358,894 365,033 336,979 (28,054) MUNICIPALITY OF ANCHORAGE 25.9% 305,768 310,999 287,097 (23,902) AEG&T 25.8% 304,588 309,798 285,989 (23,809) GOLDEN VALLEY ELECTRIC 16.9% 199,517 202,930 187,334 (15,596) CITY OF SEWARD 1.0% 11,806 12,008 11,085 (923) 100.0% 1,180,573 1,200,768 1,108,484 (92,284) COMPONENTS OF CHANGE IN CONTRIBUTION —~ FY2003 ANNUAL CONTRIBUTION 14,409,214 } INCREASE IN BUDGETED INTEREST EARNINGS (48,176) ( INCREASE IN BUDGETED O&M COSTS 470,770 Ke DECREASE IN PAYBACK TO R&C FUND (911,711) INCREASE IN DEBT SERVICE 5,325 DECREASE IN BUDGETED USE OF PRIOR YEAR ACCUMULATED SURPLUS (903,501) FY03 PROJECTED SURPLUS 224,888 INCREASE IN OPERATING RESERVE REQUIREMENT 55,000 FY2004 ANNUAL CONTRIBUTION 13,301,809 1 2/7/03/11:35 AM,h;all\elaine\bradley\ 2004 Bradley Budget.xis SCHEDULE D FY03 R&C Fund Payback Detail Budget Actuals Description Funding Source _ $ Amount $ Amount Variance Needle Repairs R&C Fund 240,250.00 6,600.84 (233,649.16) Runner Repairs R&C Fund 68,750.00 14,167.91 (54,582.09) SCADA R&C Fund 77,500.00 26,431.11 (51,068.89) Governor R&C Fund 187,500.00 - (187,500.00) Payback of FY02 R&C Fund Distributions $ 574,000.00 $47,199.86 $ (526,800.14) Needle Repairs R&C Fund 365,250.00 (365,250.00) Runner Repairs R&C Fund 131,250.00 (131,250.00) SCADA R&C Fund 77,500.00 (77,500.00) Governor R&C Fund 500,000.00 (500,000.00) Payback of FY03 R&C Fund Distributions $1,074,000.00 $ = $ (1,074,000.00) Total Payback to R&C Fund $1,648,000.00 $47,199.86 $(1,600,800.14) BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE E 116/03 CHANGE CHANGE FY02 FY03 FY2003 FROM FY03 FROM ‘03 FY2004 ACTUALS BUDGET PROJECTED BUDGET PROJECTED BUDGET FERC 535 - Operation Supervision & Engineering HEA O&M Contract 139,794 94,200 129,300 98,600 63,500 192,800 Other 0 0 139,794 94,200 129,300 98,600 63,500 192,800 FERC 537 - Hydraulic Expenses HEA O&M Contract 8,909 19,600 0 20,300 39,900 39,900 Other 0 0 0 8,909 19,600 0 20,300 39,900 39,900 FERC 538 - Electric Expenses HEA O&M Contract 222,431 354,100 163,800 (290,300) (100,000) 63,800 222,431 354,100 163,800 (290,300) (100,000) 63,800 FERC 539 - Misc. Hydraulic Power Generation Expenses HEA O&M Contract 134,728 148,100 280,200 62,800 (69,300) 210,900 DIS Voice/Data Circuits (inc. space & power) 6,904 10,000 6,904 0 3,096 10,000 DIS 2-way Radio Circuits & radio maint. 127,935 7,000 9,189 0 (2,189) 7,000 HEA Circuits and Radio - To Bernice Lake 90,000 90,000 0 0 90,000 Other 389 CEA Circuits -Bernice Lake to Anchorage 28,746 28,746 0 0 28,746 269,956 283,846 415,039 62,800 (68,393) 346,646 FERC 540 - Rents Bradley Lake FERC land use fees (5% increase bt 68,078 76,000 72,000 (1,000) 3,000 75,000 68,078 76,000 72,000 (1,000) 3,000 75,000 FERC 542 - Maintenance of Structures HEA O&M Contract 28,160 39,000 84,300 (3,700) (49,000) 35,300 Boat Dock Repairs 0 0 0 0 0 0 28,160 39,000 84,300 (3,700) (49,000) 35,300 FERC 543 - Maintenance of Reservoirs, Dams & Waterways HEA O&M Contract 1,185 5,100 0 209,200 214, a 214,300 Misc. Maint. 4,140 0 0 5,325 5,100 0 209,200 214, i 214,300 FERC 544 - Maintenance of Electric Plant HEA O&M Contract 363,911 284,000 222,600 4,400 65, I) 288,400 Page 1 of 3 2/7/03/11:09 AM, 2004 Bradley Budget.xls BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE E 1/6/03 CHANGE CHANGE FY02 FY03 FY2003 FROM FY03 FROM '03 FY2004 ACTUALS BUDGET PROJECTED BUDGET PROJECTED BUDGET HEA - Transformer Fire 0 0 0 363,911 284,000 222,600 4,400 65,800 288,400 FERC 545 - Maintenance of Misc. Hydraulic Plant HEA O&M Contract 83,225 92,000 74,700 228,600 245,900 320,600 Misc. 0 0 0 0 0 0 83,225 92,000 74,700 228,600 245,900 320,600 FERC 556 - System Control & Load Dispatching HEA O&M Contract 9,890 6,000 1,400 6,200 10,800 12,200 CEA Dispatch & Software 0 0 0 0 0 NOAA Weather Service 0 7,040 7,040 0 0 7,040 SCS Snow Measurement 8,450 29,450 21,450 12,540 20,540 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 0 0 0 211,131 240,990 228,080 23,740 36,650 264,730 FERC 562 - Station Expenses CEA SVC/Substation Maintenance Contract 17,602 68,000 24,320 5,000 48,680 73,000 17,602 68,000 24,320 5,000 48,680 73,000 FERC 571 - Maintenance of Overhead Lines HEA Overhead Line Maintenance 38,752 20,600 20,000 0 600 20,600 38,752 | 20,600 20,000 0 600 20,600 T T Page 2 of 3 2/7/03/11:09 AM, 2004 Bradley Budget.xls BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE E 116/03 CHANGE CHANGE FY02 FY03 FY2003 FROM FY03 FROM '03 FY2004 ACTUALS BUDGET PROJECTED BUDGET PROJECTED 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 0 200,000 PMC Costs Bradley Lake Audit fees 6,592 8,500 8,500 0 0 8,500 Bradley Lake PMC Legal 15,551 10,000 10,000 0 0 10,000 Bradley Lake Arbitrage Report 6,000 6,000 6,000 0 0 6,000 Miscellaneous PMC Expenses 0 0 0 Budget, recording, courier 0 0 0 0 0 Bradley Lake Trustee fees 17,595 20,000 20,000 0 0 20,000 PMC Costs 45,738 44,500 44,500 0 0 44,500 Bond Refunding Costs Costs to be reimbursed at closing 0 0 0 0 Refunding Costs 0 0 0 0 0 0] TOTAL FERC 920 245,738 244,500 244,500 0 0 244,500 FERC 924 - Property Insurance Insurance Premiums 317,096 405,000 464,487 60,000 513 465,000 Homer Electric Insurance 43,787 30,000 27,500 0 2,500 30,000 RSA with Risk Management 0 0 0 0 0 0 Risk Assessment 25,000 360,883 435,000 491,987 60,000 3,013 520,000 FERC 928 - Regulatory Commission Expenses FERC administrative fees 136,369 106,000 143,187 44,000 6,813 150,000 Contractual Engineer - FERC license issues 36,054 31,500 31,500 0 0 31,500 Spillway Seepage Water and Pressure Study 80,000 15,870 (15,870) 48,260 64,130 Reimb from Construction Fund (prior year) 0 0 0 5 Year Inspection & Follow-up 0 0 0 172,423 217,500 190,557 28,130 55,073 245,630 | TOTAL BRADLEY LAKE BUDGET 2,236,318 | _- 2,474,436 2,361,183 445,770 559,023 | 2,945,206 YTD BUDGET | Page 3 of 3 2/7/03/11:09 AM, 2004 Bradley Budget.xls BRADLEY LAKE OPERATIONS & MAINTENANCE Schedule F Budget vs Projected ACTUALS 1/8/03 CHANGE FY02 FY2003 FY2003 FY2003 FROM ACTUALS YTD 1/6/03 BUDGET PROJECTED BUDGET SUMMARY HEA O&M Contract Total 992,234 367,055 1,042,100 956,300 (85,800) CEA Substation/SVC Maintenance 17,602 17,873 68,000 24,320 (43,680) Other O&M 443,299 71,053 467,336 453,519 (13,817) 0 Insurance Costs 360,883 485,286 435,000 491,987 56,987 0 Regulatory Costs 172,423 6,174 217,500 190,557 (26,943) 1,986,440 947,440 2,229,936 2,116,683 (113,253) Administrative Costs 245,738 215,567 244,500 244,500 0 2,232,178 1,163,007 2,474,436 2,361,183 (113,253) Bond Refunding Costs 0 0 0 0 0 2,232,178 1,163,007 2,474,436 2,361,183 (113,253) FERC 535 - Operation Supervision & Engineering HEA O&M Contract 139,794 50,278 94,200 129,300 35,100 Other 139,794 50,278 94,200 129,300 35,100 FERC 537 - Hydraulic Expenses HEA O&M Contract 8,909 0 19,600 0 (19,600) Other 0 8,909 0 19,600 0 (19,600) FERC 538 - Electric Expenses HEA O&M Contract 222,431 67,846 354,100 163,800 (190,300) Page 1 of 4 2/7/03/11:09 AM, 2004 Bradley Budget.xls BRADLEY LAKE OPERATIONS & MAINTENANCE Schedule F Budget vs Projected ACTUALS 1/8/03 CHANGE FY02 FY2003 FY2003 FY2003 FROM ACTUALS YTD 1/6/03 BUDGET PROJECTED BUDGET 222,431 67,846 354,100 163,800 (190,300) FERC 539 - Misc. Hydraulic Power Generation Expenses HEA O&M Contract 134,728 93,172 148,100 280,200 132,100 DIS Voice/Data Circuits (inc. space & power) 6,904 0 10,000 6,904 (3,096) DIS 2-way Radio Circuits & radio maint. 9,189 0 7,000 9,189 2,189 HEA Circuits and Radio-To Bernice Lake 90,000 37,500 90,000 90,000 0 CEA Circuits-Bernice Lake to Anchorage 28,746 11,978 28,746 28,746 0 Other 389 0 0 269,956 142,649 283,846 415,039 131,193 FERC 540 - Rents Bradley Lake FERC land use fees (5% increase bu 68,078 0 76,000 72,000 (4,000) 68,078 0 76,000 72,000 (4,000) FERC 542 - Maintenance of Structures HEA O&M Contract 28,160 28,339 39,000 84,300 45,300 Boat Dock Repairs 0 0 0 0 0 28,160 28,339 39,000 84,300 45,300 | FERC 543 - Maintenance of Reservoirs, Dams & Waterways Miscellaneous Maintenance 4,140 0 0 0 HEA O&M Contract 1,185 5,100 0 (5,100) Nuka Diversion 0 0 0 0 5,325 0 5,100 0 (5,100) FERC 544 - Maintenance of Electric Plant HEA O&M Contract 363,911 91,198 284,000 222,600 (61,400) HEA-Transformer fire repairs 0 0 0 0 363,911 91,198 284,000 222,600 (61,400) FERC 545 - Maintenance of Misc. Hydraulic Plant HEA O&M Contract 83,225 36,222 92,000 74,700 (17,300) Misc. 0 0 0 0 83,225 36,222 92,000 74,700 (17,300) T T T Page 2 of 4 2/7/03/11:09 AM, 2004 Bradley Budget.xls 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 COI 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 ACTUALS 418/03 CHANGE FY02 FY2003 FY2003 FY2003 FROM ACTUALS | YTD 1/6/03 BUDGET PROJECTED BUDGET 9,890 6,000 1,400 (4,600) 0 0 0 0 7,040 7,040 0 8,450 29,450 21,450 (8,000) 56,500 56,500 56,500 0 136,290 142,000 141,690 (310) 0 0 0 211,131 240,990 228,080 12,910) (43,680) 43,680 38,752 38,752 0 200,000 200,000 200,000 200,000 0 0 0 200,000 200,000 200,000 200,000 0 6,592 0 8,500 8,500 0 15,551 770 10,000 10,000 0 6,000 6,000 6,000 6,000 0 ) 0 0 0 17,595 8,797 20,000 20, ee 0 45,738 15,567 44,500 44,500 0 0 0 0 0 0) | " : 0 245,738 215,567 | 244,500 | 244,500 0 Page 3 of 4 2/7/03/11:09 AM, 2004 Bradley Budget.xls BRADLEY LAKE OPERATIONS & MAINTENANCE Schedule F Budget vs Projected ACTUALS 118/03 CHANGE FY02 FY2003 FY2003 FY2003 FROM ACTUALS YTD 1/6/03 BUDGET PROJECTED BUDGET FERC 924 - Property Insurance Insurance Premiums 317,096 464,487 405,000 464,487 59,487 Homer Electric Insurance 43,787 20,799 30,000 27,500 (2,500) RSA with Risk Management 0 0 0 0 360,883 485,286 435,000 491,987 56,987 FERC 928 - Regulatory Commission Expenses FERC administrative fees 136,369 0 106,000 143,187 37,187 Contractual Engineer - Bradley FERC Licensing 36,054 304 31,500 31,500 0 Reimb from Construction Fund (prior year) 0 Spillway Seepage Water and Pressure Study 5,870 80,000 15,870 (64,130) 5 Year Inspection & Follow-up 0 172,423 6,174 217,500 190,557 (26,943) TOTAL BRADLEY LAKE BUDGET 2,236,318 1,163,007 2,474,436 2,361,183 (113,253) Page 4 of 4 2/7/03/11:09 AM, 2004 Bradley Budget.xls BRADLEY LAKE BUDGET ACTIVITY BY ACCOUNT SCHEDULE G 6/30/2001 Balance FY2002 Debt Payment 7/1/01 Revenues Interest Transfers to O&M Transfers to Debt Service 01 O&M Requisitions 2002 O&M Requisitions Vehicle Purchase Renewals/Replacements Payback of R&C Fund To Excess Earnings fund Reduction in Capital Res Debt Payments 6/30/2002 Balance FY2003 Projected Debt Payment 7/1/02 Revenues Interest Transfers to O&M Transfers to Debt Service 02 O&M Requisitions 2003 O&M Reauisitions Purchase Vehicle Renewals/Replacements Payback of R&C Fund To Excess Earnings fund Reduction in Capital Res Debt Payments 6/30/2003 Projected Balance FY2004 Budget Revenues Interest Transfers to O&M Transfers to Debt Service Payback of R&C Fund 2003 O&M Requisitions Renewals/Replacements To Excess Earnings fund Reduction in Capital Res Debt Payments Increase Op Reserve 6/30/2004 Projected Balance Rev Fund O&M Fund Debt Fund Reserv R&C Cap Reserve Total 158,161 326,073 8,434,101 535,000 5,000,010 12,834,000 27,287,345 (8,434,100) (8,434,100) 13,765,790 13,765,790 1,772,284 (9) - 1,772,275 (2,572,597) 2,572,597 (0) (12,273,450) 12,273,450 - - - (2,199,780) (2,199,780) (47,200) (47,200) (47,200) 47,200 0 (142,219) (142,219) (3,724,225) (3,724,225) 660,770 698,890 8,549,226 535,000 5,000,001 12,834,000 28,277,887 (8,549,225) (8,549,225) 14,409,216 14,409,216 1,479,638 331,874 - 1,811,512 (2,398,320) 2,398,320 - (12,268,075) 12,268,075 - - = (500,596) (500,596) (2,361,183) (2,361,183) (29,130) : (1,353,332) (1,353,332) (1,021,457) 1,021,457 7 (164,571) (164,571) (12,268,075) (12,268,075) 697,200 206,301 4 535,000 5,000,000 12,834,000 19,301,633 * 23% of Annual O&M Budget 13,301,810 - 13,301,810 1,430,584 326,840 1,757,423 (2,793,905) 2,793,905 - 7 (12,273,400) 12,273,400 = (162,289) 149,789 (12,500) (2,945,206) : (2,945,206) - (800,000) - (800,000) (200,000) (200,000) (12,273,400) (12,273,400) (55,000) 55,000 - 0 (0) 1 590,000 4,676,629 12,834,000 18,129,760 * 20.033% of Annual O&M Budget Page 1 of 1 2/7/03/11:09 AM, 2004 Bradley Budget.xis BRADLEY LAKE PROJECTED CASH FLOWS - 2003 Schedule H Projected Balance 6/30/02 July August September October November December January February March April May June FY Total July 2003 BUDGET Debt Service - Principal 5,085,000 5,085,000 Debt Service - Interest 3,591,538 0 3,591,538 7,183,075 Total Debt Service 0 0 0 0 0 3,591,538 0 0 0 0 0 8,676,538 12,268,075 OPERATING FUND Operating Budget 0 200,000 1,026,930 0 0 0 436,674.94 239,635 239,635 239,635 239,635 239,635 2,861,780 Renewals & Replacements 0 0 0 1,021,457 1,021,457 Purchase New Vehicle 0 0 29,130 0 0 0 0 0 0 0 0 0 29,130 TOTAL REQUIREMENTS il 16,180,442 INTEREST INCOME Capital Reserve 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 R&C Fund 30,833 29,411 29,593 29,775 29,959 30,144 30,330 25,186 23,938 24,086 24,235 24,384 331,874 Operating Reserve 3,299 3,320 3,340 3,361 3,381 3,402 3,423 3,320 3,341 3,361 3,382 3,403 40,333 Debt Service Fund 0 0 0 0 0 0 15,679 15,775 15,873 15,971 16,069 489 79,856 113,276 112,362 113,055 113,752 114,454 115,159 131,548 123,931 123,292 124,053 124,818 109,909 1,419,608 Operating Fund 5,542 6,192 3,680 1,589 2,831 4,081 3,845 3,016 2,789, 2,561 2,332 2,101 40,560 SUBTOTAL 118,818 118,554 116,735 115,341 117,285 119,241 135,393 126,947 126,082 126,614 127,149 112,009 1,460,168 Revenue Fund 15,018 20,268 26,565 32,901 39,276 45,691 18,672 23,851 30,170 36,529 42,926 11,537 343.404 INTEREST INCOME 133,836 138,822 143,300 148,242 156,561 164,931 _154, 065 150,798 156,252 163,143 170, 076 123,546 1,803,572 YTD INTEREST INCOME 133,836 272,658 415,958 364,200 720,762 885,693 1,039,758 1,190,556 1,346,808 1,509,951 1,680,026 1,803,572 TEREST RECEIVED 773,660 885,693 1,659,353 917,879 FUND BALANCES 6/30/02 REVENUE FUND Beginning Balance in Revenue Fund 660,770 2,285,785 3,306,960 4,334,434 5,368,243 6,408,427 7,455,026 2,866,827 3,891,586 4,922,664 5,960,101 7,003,935 660,770 697,200 Utility Payments 1,200,768 1,200,768 1,200,768 1,200,768 1,200,768 1,200,768 1,200,768 1,200,768 1,200,768 1,200,768 1,200,768 1,200,768 14,409,216 Transfer to Debt Service - Principal (2,542,500) (2,542,500) (5,085,000) Transfer toDebt Service - Interest 0 (3,591,538) 0 (3,591,538) (7,183,075) To Operating Fund (199,860) (199,860) (199,860) (199,860) (199,860) (199,860) (199,860) (199,860) (199,860) (199,860) (199,860) (199,860) (2,398,320) Reimbursement of refunding costs 0 0 Transfer to R&C Fund (1,021,457) (1,021,457) Arbitrage transfer (164,571) (164,571) Reduction on Capital Reserve 0 0 Interest Accrued 15,018 20,268 26,565 32,901 39,276 45,691 18,672 23,851 30,170 36,529 42,926 11,537 343,404 Interest Accrual Reversal (179,720) (163,685) (343,404) Interest Receipts & Transfers 773,660 0 0 0 0 0 705,978 0 0 0 0 1,479,638 765,721 End of Month Balance 660,770 2,285,785 3,306,960 4,334,434 5,368,243 6,408,427 7,455,026 2,866,827 3,891,586 4,922,664 5,960,101 7,003,935 697,200 697,200 1,462,921 OPERATING FUND Balance Operating Fund 698,890 904,292 910,344 57,825 259,274 461,965 665,906 409,020 372,261 335,275 298,061 260,618 698,890 222,943 Interest 5,542 6,192 3,680 1,589 2,831 4,081 3,845 3,016 2,789 2,561 2,332 2,101 40,560 Interest transferred (23,916) (23,916) (16,644) Transfers from Revenue Fund 199,860 199,860 199,860 199,860 199,860 199,860 199,860 199,860 199,860 199,860 199,860 199,860 2,398,320 0 Transfers from Operating Reserve 0 0 0 0 0 0 0 0 0 0 0 0 0 To Operating Reserve 0 0 Purchase of Vehicle 0 0 (29,130) 0 0 0 0 0 0 0 0 0 (29,130) Page 1 of 2 2004 Bradley Budget.xls, 2/7/03, 11:09 AM BRADLEY LAKE PROJECTED CASH FLOWS - 2003 Schedule H Projected Balance 6/30/02 July August September October November December January February March April May June FY Total July Operating Requistions 0 (200,000) _(1,026,930) 0) 0 0 (436,675) (239,635) (239,635) (239,635) (239,635) (239,635) __ (2,861,780) 698,890 904,292 910,344 57,825 259,274 461,965 665,906 409,020 372,261 335,275 298,061 260,618 222,943 222,943 206,300 DEBT SERVICE FUND Balance Debt Service Fund 0 0 0 0 0 0 0 2,558,179 2,573,954 2,589,827 2,605,798 2,621,867 0 79,856 Interest 0 0 0 0 0 0 15,679 15,775 15,873 15,971 16,069 489 79,856 Interest transferred 0 0 (79,856) Transfer from R&C fund 0 Transfer from Capital Reserve Fund 0 Transfers from Revenue Fund 0 0 0 0 0 0 6,134,038 0 0 0 0 6,134,038 12,268,075 Payment of Debt Service 0 0 0 0 0 (3,591,538) 0 0 0 0 (8,676,538) __(12,268,075) 0 0 0 0 0 0 0 2,558,179 2,573,954 2,589,827 2,605,798 2,621,867 79,856 79,856 0 OPERATING RESERVE Balance Operating Reserve 535,000 538,299 541,619 544,959 548,319 551,701 555,103 538,423 541,743 545,084 548,446 551,828 535,000 555,231 Interest 3,299 3,320 3,340 3,361 3,381 3,402 3,423 3,320 3,341 3,361 3,382 3,403 40,333 Interest transferred (20,103) (20,103) (20,231) Transfers to Operating Fund 0 0 0 0 0 0 0 0 0 0 0 0 0 Transfer from Operating Fund 0 0 0 0 0 0 0 0 0 0 0 0 0 535,000 538,299 541,619 544,959 548,319 551,701 555,103 538,423 541,743 545,084 548,446 551,828 555,231 555,231 535,000 CAPITAL RESERVE FUND Balance Capital Reserve Fund 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 Reduction on Capital Reserve 0 Interest 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 Interest transferred (482,239) (482,239) (485,306) 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 13,319,306 13,319,306 12,834,000 RENEWAL & CONTINGENCY FUND Balance in Renewal & Contingency Fund 5,000,000 4,769,420 4,798,831 4,828,424 4,858,199 4,888,158 4,918,302 4,084,248 3,881,900 3,905,838 3,929,924 3,954,159 5,000,000 5,000,000 Interest 30,833 29,411 29,593 29,775 29,959 30,144 30,330 25,186 23,938 24,086 24,235 24,384 331,874 Transfer from Revenue Fund 1,021,457 1,021,457 Capital Repairs/Maintenance (261,414) (864,384) (227,534) 0 (1,353,331) Interest transferred 0 } 0 5,000,000 4,769,420 4,798,831 4,828,424 4,858,199 4,888,158 4,918,302 4,084,248 3,881,900 3,905,838 3,929,924 3,954,159 5,000,000 5,000,000 3,000,000 Assumptions: Utility Payment = 1/12 of O&M+Contingency+Debt Service minus 1/12 interest eamed on all funds, rounded 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 12 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 based on expenditures for year When fund drops below requirement ($5million), interest remains in the fund Operating Reserve Requirement increased at beginning of June to meet first month operating deficit if greater than reserve amount Page 2 of 2 2004 Bradley Budget.xls, 2/7/03, 11:09 AM BRADLEY LAKE PROJECTED CASH FLOWS - 2004 Schedule | Projected Balance 6/30/03 July August September October November December January February March April May June FY Total July 2004 BUDGET Debt Service - Principal 5,370,000 5,370,000 Debt Service - Interest 3,451,700 3,451,700 6,903,400 Total Debt Service 0 0 0 0 0 3,451,700 0 0 0 0 0 8,821,700 12,273,400 OPERATING FUND Operating Budget 615,839 350,839 150,839 192,589 171,439 225,839 164,339 150,839 150,839 155,839 150,839 465,127 2,945,206 Renewals & Replacements 0 0 0 0 0 Contingency 0% 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL REQUIREMENTS 7 15,218,606 INTEREST INCOME Capital Reserve 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 R&C Fund 30,833 26,090 26,251 26,413 26,576 26,740 26,905 27,070 27,237 27,405 27,574 27,744 326,840 Operating Reserve 3,299 2,230 1,527 1,537 1,546 1,556 1,566 1,503 1,512 1,522 1,531 1,540 20,870 Debt Service Fund 0 0 } 0 0 0 16,558 16,660 16,762 16,866 16,970 517 84,332 113,275 107,951 107,901 108,566 109,235 109,909 127,144 124,883 125,653 126,427 127,207 111,434 1,399,586 Operating Fund 1,899 1,082 977 1,360 1,682 1,903 2,093 2,570 3,091 3,600 4.113 1,530 25,899 SUBTOTAL 115,174 109,033 108,878 109,926 110,917 111,812 129,237 127,452 128,744 130,028 131,320 112,964 1,425,485 Revenue Fund 13,188 18,669 24,184 29,733 35,316 40,934 12,843 17,323 22,830 28,371 33,946 7 278,049 INTEREST INCOME 128,362 127,702 133,062 139,659 146,234 152.746 142,081 144,775 151,574 158,398 165,265 113,675 = 1,703,534 YTD INTEREST INCOME 128,362 256,064 389,126 528,786 675,019 827,766 969,846 1,114,622 1,266,196 1,424,594 1,589,859 1,703,534 INTEREST RECEIVED 765,721 827,766 1,593,487 875,768 FUND BALANCES. Projected 6/30/03 REVENUE FUND Beginning Balance in Revenue Fund 697,200 2,151,768 3,046,096 3,945,938 4,851,330 5,762,306 6,678,898 1,933,539 2,826,521 3,725,010 4,629,039 5,538,644 697,200 (0) Revenue from Power Purchasers 1,108,484 1,108,484 1,108,484 1,108,484 1,108,484 1,108,484 1,108,484 1,108,484 1,108,484 1,108,484 1,108,484 1,108,484 13,301,810 Transfer to Debt Service - Principal (2,685,000) (2,685,000) (5,370,000) Transfer toDebt Service - Interest (3,451,700) (3,451,700) (6,903,400) To Operating Fund (232,825) (232,825) (232,825) (232,825) (232,825) (232,825) (232,825) (232,825) (232,825) (232,825) (232,825) (232,825) (2,793,905) To Renewal and Contingency Fund (162,289) (162,289) Arbitrage transfer (200,000) (200,000) From Operating Fund 0 Interest Accrued 13,188 18,669 24,184 29,733 35,316 40,934 12,843 17,323 22,830 28,371 33,946 71 278,049 Interest Accrual Reversal (162,025) (116,024) (278,049) Interest Receipts & Transfers 765,721 0 0 0 0 0 664,863 0 0 0 0 1,430,584 711,831 End of Month Balance 697,200 2,151,768 3,046,096 3,945,938 4,851,330 5,762,306 6,678,898 1,933,539 2,826,521 3,725,010 4,629,039 5,538,644 (0) (0) 711,831 OPERATING FUND Balance Operating Fund 206,300 1,899 1,082 84,046 125,642 188,711 197,600 259,276 343,832 428,909 509,496 595,595 206,300 16,994 Interest 1,899 1,082 977 1,360 1,682 1,903 2,093 2,570 3,091 3,600 4,113 1,530 25,899 Interest transferred (8,903) (8,903) (16,995) Transfers from Revenue Fund 232,825 232,825 232,825 232,825 232,825 232,825 232,825 232,825 232,825 232,825 232,825 232,825 2,793,905 0 Transfers from Operating Reserve 231,714 116,115 0 0 0 0 0 0 0 0 0 0 347,828 0 To Operating Reserve (55,000) (347,828) (402,828) Transfer from R&C fund 0 0 Renewals & Replacements 0 0 0 0 0 0 0 0 0 0 0 0 0 Operating Requistions (615,839) (350,839) (150,839) (192,589) (171,439) (225,839) (164,339) (150,839) (150,839) (155,839) (150,839) (465,127) (2,945,206) 0 Page 1 of 2 2004 Bradley Budget.xls, 2/7/03, 11:09 AM BRADLEY LAKE PROJECTED CASH FLOWS - 2004 Schedule | Projected Balance 6/30/03 July August September October November __ December January February March April May June EY Total _luly 206,300 1,899 1,082 84,046 125,642 188,711 197,600 259,276 343,832 428,909 509,496 595,595 16,994 16,994 qd) DEBT SERVICE FUND Balance Debt Service Fund 0 0 0 0 0 0 0 2,701,558 2,718,217 2,734,979 2,751,845 2,768,815 0 84,332 Interest 0 0 0 0 0 0 16,558 16,660 16,762 16,866 16,970 517 84,332 Interest transferred 0 0 (84,332) Transfers from Revenue Fund 0 0 0 0 0 0 6,136,700 0 0 0 0 6,136,700 12,273,400 Payment of Debt Service 0 0 0 0 0 (3,451,700) 0 0 0 0 (8,821,700) (12,273,400) 0 0 0 0 0 0 0 2,701,558 2,718,217 2,734,979 2,751,845 2,768,815 84,332 84,332 0 OPERATING RESERVE Balance Operating Reserve 535,000 361,585 247,700 249,228 250,765 252,311 253,867 243,737 245,240 246,752 248,274 249,805 535,000 599,174 Interest 3,299 2,230 1,527 1,537 1,546 1,556 1,566 1,503 1,512 1,522 1,531 1,540 20,870 Interest transferred (11,696) (11,696) (9,174) Transfers to Operating Fund (231,714) (116,115) 0 0 0 0 0 0 0 0 0 0 (347,828) 0 Transfer from Operating Fund 55,000 0 0 0 0 0 0 0 0 0 0 347,828 402,828 535,000 361,585 247,700 249,228 250,765 252,311 253,867 243,737 245,240 246,752 248,274 249,805 599,174 599,174 590,000 CAPITAL RESERVE FUND Balance Capital Reserve Fund 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 Interest 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 Transfer to Revenue Fund 0 0 Interest transferred (482,239) (482,239) (485,306) 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 13,319,306 13,319,306 12,834,000 RENEWAL & CONTINGENCY FUND Balance in Renewal & Contingency Fund 5,000,000 4,230,833 4,256,923 4,283,174 4,309,587 4,336,163 4,362,903 4,389,807 4,416,878 4,444,115 4,471,521 4,499,095 5,000,000 4,689,129 Transfer from Revenue Fund 162,289 162,289 Requisitions (800,000) (800,000) Interest 30,833 26,090 26,251 26,413 26,576 26,740 26,905 27,070 27,237 27,405 27,574 27,744 326,840 Interest transferred 0 0 0 5,000,000 4,230,833 4,256,923 4,283,174 4,309,587 4,336,163 4,362,903 4,389,807 4,416,878 4,444,115 4,471,521 4,499,095 4,689,129 4,689,129 4,689,129 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 Page 2 of 2 2004 Bradley Budget.xls, 2/7/03, 11:09 AM