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Bradley Lake PMC Meeting March 11, 2008 2
BUDGET SUMMERY HEA/BRADLEY LAKE PROJECT FY 2009 BUDGET BY FERC NUMBER | | | ACCOUNT | et Tat 7 4 eo eee NUMBER ____ DESCRIPTION | AMOUNT _ Ee EE eel Eee eee be | | BRADLEY O&M 535, [OPERATIONS SUPERVISION AND ENGINEERING ae $226,274 537 [HYDRAULIC OPERATIONS. eee 538 |ELECTRIC PLANT OPERATIONS —_ | $191,122 539 |HYDRAULIC GENERATION OPERATIONS —s———s,_—_s$3382,016 541 [MAINTENANCE SUPERVISION AND ENGINEERING _| $125,283 542. |MAINTENANCE OF STRUCTURES __ ce $75,809 543 [MAINTENANCE OF RESERVOIRANDDAM ‘$59,023 544 MAINTENANCE OF ELECTRIC PLANT ro | __ $325,004 545 "MAINTENANCE OF MISC HYD PLANT - | $178,019 556 CONTROL AND DISPATCH | $49,195 [TOTAL | $1,682,904 = allel lel ila a= aera a CAPITAL PROJECTS | | 331. [STRUCTURES AND IMPROVEMENTS Peer eee 332. |RESERVOIRS, DAMS, AND WATERWAYS si $65,000 333. |WATERWHEELS, TURBINES, ANDGENERATOR | —_ $0 334. |ACCESSORYELECTRICRLANT —s—s«=—sé=s“édS£ $250,000 335 MISCELLANEOUS POWER PLANT EQUIPMENT | __ $155,000 336 |ROADS, RAILROADS AND BRIDGES | | $800,000 ___ [TOTAL |__ $1,270,000 __571__ |MAINTENANCE OF OVERHEAD LINES ore $349,435 925 SAFETYRELATEDEXPENSES | $49,270 | PEEP ___ [TOTAL [__ $398,705 (aaa sasweee TGMEGnla Sra cana HEA/BRADLEY LAKE HISTORIC | | COMPARISON | fo | | | | | ACCOUNT | | FY08 BUDGET | ACTUALYTD | PROJECTION FY09BUDGET | INCREASE NUMBERS | ITEM DESCRIPTION | (July/07-June/08) (Dec. 31, 2007) (FY-08) | {July/08-June/09) (DECREASE) | COMMENT: | | | T T T BRADLEY O&M | | | | | | 535. OPERATIONS SUPERVISION AND ENGINEERING | | | | | | [0.01 [HEA BRADLEY MANAGEMENT | $114,225 $85,759 $171,518} $203,276} $89,051} Staffing adjustments will cause a char 0.03 |ENGINEERING $4,750 $0 $5,000| $5,275] $525| New personnel not integrated into wor 10.21 [TRAVEL | $3,006 $2,714 $5,428 $5,591 $2,584) (0.41 [TECHNICAL TRAINING | $4,944 $6,627 $13,255 $5,927) $983] All training completed in the first half < [0.42 |OFFICE EQUIPMENT MAINTENANCE | $1,028 $0 $1,200) $1,236) $208) Postponed maintenance untill the sec 10.61 [SUPPLIES AND MATERIALS | $5,858 $1,208 $2,416] $2,488] -$3,370] |0.62 |DOCUMENT CONTROL | $6,546 $204 $408) $2,480) -$4,066' Expenditures planned for second half | | | | | [TOTAL $140,357) $96,512) $199,224] $226,274) $85,916) | | | | | | | 537) _HYDRAULIC OPERATIONS | | | | | | 10.01 [PERSONNEL $40,112 $30,038 $60,076] $54,239] $14,126] 7% of total O&M non-management lal 10.41 |ENVIRONMENTAL/FISH AND GAME STUDIES | $1,030 $3,100 $6,200) $1,236 $206] Completed in first half of fiscal year. | 0.42 [DAM SETTLEMENT SURVEYS | $8,199 $8,234 $16,468) $8,722) $523] Completed in first half of fiscal year 10.61 |SUPPLIES AND MATERIALS | $4,696 $15,880 $31,760} $6,963) $2,267! Increase cost due to rip-rap repair rec | | | | | TOTAL $54,037/ $57,252) $114,503] $71,159 $17,122| T T T T T T + — i | | | | i | | | | ie | | | i 538) |ELECTRIC PLANT OPERATIONS | | | | | 0.01 [PERSONNEL $200,562 $72,112 $144,225) $154,968) -$45,594| 20% of total O&M non-management | 10.41 [TECHNICAL TRAINING | $25,750 $1,051 $2,101) $25,854! $104) Lack of time due to projects and injur | ] 1 1 j0.43 eae ANDIEQUIEMEN TMIBRATION | $2,472 $0 $0) $0) -$2,472| Will be completed by HEA personnel (0.61 |SUPPLIES AND MATERIALS $6,888 $5,000 $10,000) $10,300} $3,412| 2 | | i | | | \ | | | TOTAL | $235,672| $78,163) $156,326) $191,122! -$44,550) ark | | | I Page 2 | | 539, T HYDRAULIC POWER GENERATION OPERATIONS | |0.01 |PERSONNEL | $96,270 $23,163 $46,326) $77,484 -$18,786) 10% of total O&M non-management lé (0.02 PROCUREMENT, ACCOUNTING, AND PERSONNEL | $51,278 $12,954 $25,907! $45,137 -$6,141) | {0.03 |CLERICAL, ENVIRONMENTAL, AND SAFETY LABOR | $70,602 $17,502 $35,005) $51 1294) -$19,308) 0.04 [HOUSEKEEPING SERVICES FOR CREWS QUARTERS | $1,545 $0 $1,545) $1,591) $46! Will be completed in second half of fis (0.42 HELICOPTER TRANSPORTATION | $44,193 $31,572 $63,145! $49,589) $5,396! Due to change in how flight service is | '0.43 |FIXED WING TRANSPORTATION | $43,739 $41,112 $82,224 $64,091) $20,352 Due to change in how flight service is 10.44 [BARGE SHIPPING AND DOCKING $16,480 $9,493 $18,986) $19,556) $3,076} \0.45 | UPS/FEDEX SHIPPING CHARGES I $2,212 $0 $2,212 $2,278: $67 lo. 50 | TELEPHONE & SATELLITE CHARGES | $7,006 $11,558 $23,115) $11,449 $4,443| Increase due to addition of satellite pr [0.51 |CMMS SOFTWARE SUPPORT | $3,090 $0 $0) $3,090) $0! Investigating change in CWWS softw: 14 legal for O&M [0.52 |CONTRACTILABOR LEGAL SERVICES | $2,477 $8,037 $16,073 $3,165 $689) ch peal ee | | | . [0.60 |GASOLINE AND DIESEL FUEL | $38,228 $24,210 $48,420 $41,633) $3,405} Fuel price increase. |0.61 {SUPPLIES AND MATERIALS i $16,666 $5,660 $11,319 S659] -$5,007) | | I | {TOTAL | $393,785} $185,260} $374,277] $382,016 -$11,768} T | | | | | | 541, _MAINTENANCE SUPERVISION AND ENGINEERING | | | | lo.o1 |HEA BRADLEY MANAGEMENT $48,954 $43,585 $87,171 $109,456) $60,503) Staffing adjustments will cause a cha 19 03 | ENGINEERING | $14,251 $3,085 $6,170) $15,826 $1 576) New personnel not integrated into wo fol | | | | | | | TOTAL | $63,204) $46,670! $93,341) $125,283) $62,078) | | T i 542, “MAINTENANCE OF STRUCTURES | | | 10.01 | PERSONNEL | $80,225 $14,897 $29,794) $38,742) -$41,483| 5% of total O&M non-management la 10.61 |SUPPLIES AND MATERIALS | $7,186 $485 $971) $3,060 -$4,126) | | ] | | Architect study to evaluate the condit 0.71 |ARCHITECT REVIEW OF VARIOUS BUILDINGS $0) $0} $0 $30,000} $30,000; housing units, options for modificatio: | a vehicle storage building. ‘0.81 |EQUIPMENT AND MACHINERY | $5,936 $1,945 $3,891 $4,008 | -$1,929) | [TOTALS $93,347, $17,328 $34,656) $75,009 -$17,538) | | | | ! Page 2 7 | | \MAINTENANCE OF RESERVOIR, DAM, AND | T l T 543, WATERWAY | | | 10.01 |PERSONNEL $8,022 $4,347 $8,695) $23,245) $15,223) 3% of total O&M non-management lat 10.41 |CIVIL ENGINEERING | $3,090 $1,305 $2,610! $2,688) -$402! '0.42 'NUKA REPAIR | $3,090 $0 $0 $3,090! $0) T | | | | | The tunnel drains are plugged. They r 0.71 |POWER TUNNEL DRAIN CLEAN & INSPECT $0 $0) $0} $30,000 $30,000 inspected. This is a FERC requiremer | | | | | TOTALS | $14,202) $5,652/ $11,305) $59,023) $44,821] | | | | | | | | | | 544, _MAINTENANCE OF ELECTRIC PLANT | | i | 10.01 -|PERSONNEL $200,562 $127,706 $255,413 $232,452/ $31,890| 30% of total O&M non-management | {0.21 [TRAVEL $3,434 $940 $1,881 $1,937] -$1,497) 0.42 [MISCELLANEOUS SERVICE CONTRACTS $10,562 $6,075 $12,150} $12,515 $1,952| | | | We will be doing 1/3 of the work eack iocts RELAY MAINTENANCE $12,360 $15,384 920/768) $16,241) #288 Work done inithe first halfontheisea 10.61 ‘SUPPLIES AND MATERIALS | $20,102 $10,612 $21,224) $21,860) $1,758) | | Study similar to the one for the four d 0.71 \LONG RANGE MAINTENANCE STUDY $0 $0 2 $40,000 eeu range equipment replacement and re | | | | | | TOTALS [ $247,020! $160,717) $321,434) $325,004] $77,984) | | | | | | | 545 |MAINTENANCE OF MISCELLANEOUS HYDRAULIC | | | j | | PLANT 10.01 [PERSONNEL | $160,449 $56,128 $112,256 $154,968) -$5,482| 20% of total O&M non-management '0.42 |MISCELLANEOUS SERVICE CONTRACTS $6,477 $0 $3,300 $3,399) -$3,078] = 10.61 [SUPPLIES AND MATERIALS $17,528 $9,540 $19,080 $19,652) $2,124} ; f 5 | | 3 ! | TOTALS $184,455! $65,668 $134,636) $178,019} -$6,436 | | | | | 556) .SYSTEM CONTROL AND LOAD DISPATCH | | | | | [0.01 [PERSONNEL | $16,045 $13,127 $26,255} $38,742| $22,697| 5% of total O&M non-management I: |0.42 SCADA SOFTWARE/HARDWARE MAINTENANCE | $4,120 $451 $902| $5,049] $930| Maintenance agreement (every 3 ye: 10.61 |SUPPLIES AND MATERIALS. i $1,732 $7,123 $14,246} $5,404) $3,672| Expenditures in first half of fiscal yee ] f i t | | i | | {TOTALS | $21,896] $20,702) $41,403 $49,195 $27,299 | | | | | | | | | | | | | O&M PAGE TOTAL | $1,447,976) $733,924 $1,481,106 $1,682,904 $234,928) | 16%| | | 1 | a Page 2 | | | | | | | 1 | | | | ] i 331] | STRUCTURES AND IMPROVEMENTS | | | | | | | | | | | jo | | | | |ToTALs | $0) $0) $0) $0) $0) ] | | ] | | ] | | | | | | | | 332 | RESERVOIRS, DAMS, AND WATERWAYS | | | | | T - - : . : : - i | | | | | | The gatehouse cathodic protection has | 9-91 CaTHODIC PROTECTION REPLACEMENT | 2 ad = ee $65,000 replaced | | | | | | | | | [TOTALS | $0) $0! $0! $65,000! $65,000) | 7 7 T T I | | | | | | | ] ] 1 333] 'WATERWHEELS, TURBINES, AND GENERATOR | | | | | (0.10 [RUNNER REPLACEMENT | $0 $324,748 $481,956] $0 $0) Completed this year. | | | | | | Inco i f i | | j | rporation of the new governor into fi i IPOvERNOR UECRADE so $45,564 oAG 308 I co Final Invoice from Hatch/Acres on tunr } T | 1 { ] | T ; | 1 i | | ‘TOTALS | $0 $371,312) $528,520) $0) $0, | | | | | — 334) “ACCESSORY ELECTRIC PLANT | | | | | | \0.01 |POWER & FIBER CABLE REPLACEMENT | $973,309 $610,955 $660,955} $0) -$973,309, See Power & Fiber Cable Replacemer | | | | | Large cost overruns and inacurate pro io 02 |REPLACE BRADLEY RFLs | $85,000 $228,135 $228,135) $0) -$85,000| Reolacement worksheet [0.03 [REPLACE POWER SYSTEM STABILIZER | $200,000 $0 $0} $200,000, $0| Project delayed due to lack of time 0 04 [REPLACE 2 RTUs $80,000 $15,694 $80,694} $50,000! -$30,000, Project underway | | | | | | | | [TOTALS | $1,338,309! $854,784) $969,784 $250,000] -$1,088,309' nt | | Page 2 | | | | | i 335) _MISCELLANEOUS POWER PLANT EQUIPMENT | | | 10.01 MAN-LIFT $75,000 $73,900 $0) $0} -$75,000) Completed. 0 02 |SNOW PLOW ATTACHMENT | $12,000 $0 $12,000] $0) -$12,000| Plow attachment to be purchased in se [0.03 TRUCK / AMBULANCE | $35,000 $0 $35,000) $45,000| $10,000) Truck to be purchased in second half « 10.04 IMOWER ATTACHMENT FOR LOADER | $0 $0 $0 $45,000) $45,000] Mower required to perform the brush ¢ To.06 | HALON FIRE SYSTEM REPLACEMENT $0 $0 $0) $15,000] $15,000} Replace aging and unsupported equip 0. 07 FIRE WATER CONTROL VALVE REPLACEMENT $0 $0 $0] $30,000) $30,000! Valve needs to be repaired or replace: 0.09 |SMALL MILLING MACHINE | $0 $0 $0) $20,000 $20,000| | | | | | | | _|TOTALS | $122,000! $73,900) $47,000) $155,000) $33,000 - ; - | | | | 336 ROADS, RAILROADS AND BRIDGES lo 01 iCULVERT REPAIRS $81,546 $0 $80,000 $800,000) $718,454' Project being redesigned in an attemp | | : | TOTALS $81,546) $0 $80,000) $800,000) $718,454 | | | ‘CAPITAL PROJECTS TOTAL $1,541,855, $1,299,996 $1,625,304 $1,270,000 -$271,855) | | | | | Page 2 1 ] i | | | OTHER PROJECT COSTS | | | | || 871, (MAINTENANCE OF OVERHEAD LINES | | | 0. 20 |GENERAL MAINTENANCE $36,050 $2,133 $36,050, $37,132) $1,082) 0.21 ROW CLEARING $262,650 $0 $262,650) $167,530) -$95,121 10.25 LINE PATROL $4,034 $1,817 $3,634} $4,774) $739) | | | A number of towers have been found 0.27 | TRANSMISSION TOWER FROST JACKING STUDY $0 $0 $0} $140,000 $140,000) supports jacking out of the ground due | | heave | I | | | | | | | | | | TOTALS $302,734 | $3,950] $302,334) $349,435 $46,700! | | | 925) SAFETY RELATED EXPENSES | | | 0.50 |GENERAL LIABILITY INSURANCE $6,231 $3,116 $6,231) $6,370) $139) 0.51 [AVIATION INSURANCE | $48,750 $21,450 $42,900) $42,900) -$5,850) | | | | | | | TOTALS $54,981 | $24,566 | $49,131) $49,270, -$5,711) | | \OTHER PROJECT COSTS TOTAL | $357,715, $28,516 | $351,466, $398,705 $40,989 T | | | i \ | | | | | | | | || | | | | REPORT TOTALS | $3,347,546 $2,062,437 $3,457,876 $3,351,608. $4,062. — | | | | | | | | | | y | | FY 2008 FY 2009 Increase Change | STATISTICS (Decrease) | Labor $1,092,057 $1,189,278 $97,222 8.9% This includes a 3% increase across tl Training $30,694 $31,782 $1,088 3.5% Inflation increase | Supplies and Materials $80,656 $77,973 -$2,683 -3.3% Based on previous year expenditures Page 2 HEA/BRADLEY LAKE FY 2009 MONTHLY | | | | | | | | COST WORK SHEET | 100! ‘ACCOUNT | | | | | | MONTHLY | COST ADJUSTMENT NUMBERS | ITEM DESCRIPTION JULY AUG SEPT | oct | Nov | vec van | ep | MAR) | APRIL | MAY =| JUNE | | TOTAL levees eos _ ; Ea T | ! | I { | { fet a { I T 1 ; T BRADLEY O&M | | | | | | | et | | | i | i T { | 3.00% Ye oats OPERATIONS SUPERVISION AND 7 | ENGINEERING | (0.01| HEA BRADLEY MANAGEMENT $16,940 $16,940 $16,940] $16,940, $16,940] —« $16,940] — $16,940] — $16,940] $16,940] $16,940| $16,940] __$ 16,940 $203,276] $16,940 0.03] ENGINEERING $440) $440 $440 $440| $440/ $440 $440, $440 $440 $440 $440! $440 $5,275] $440) 0.21] TRAVEL | $468 $466 $466 $466! $466! $466) $466) $468 $468 $466 $486 $466! $5,591| | $466) | _]o.41] TECHNICAL TRAINING ia $494 $494) $494) $494 $494] $494) $494) $494) $494) $494) $494! 494] | $5,927| | $494 -$7,500 | All [042] OFFICE EQUIPMENT MAINTENANCE $103 $103) $103] $103] $103) $103 $103] $103 $103) $103 $103] $103) | | $103) ail ]o.61| SUPPLIES AND MATERIALS $207] $207} $207] $207) $207} $207 $207! $207) $207| $207] $207] 207] | | $207! | [0.62] DOCUMENT CONTROL iH $207 $207) $207| $207] $207} $207) $207! $207] $207! $207) $207) $207| | | $207) $2,000 ex T T 1 1 i ee TOTAL 318,856] $18,656) $10,656, $16,656| $16,656, $16,656, $18,856) $18,656, $16,856, S18.656/ $18,856] $18,856] $226,274| $18,856 t I T [ T l $37| HYDRAULIC OPERATIONS | | 10.01| PERSONNEL (Site Labor) $4,520 $4,520 $4,520 $4,520) $4,520] $4,520 $4,520] $4,520! $4,520 $4,520 $4,520 $4,520] | $54,239 $4,520) NVIRUNMENTAUFISHA ANU GAME T T T T Pr oat | Ber = $1,236 $0] $0 $0/ $0! $0) $0) $0) so} $0] $0 30] | $1,236 $103) $5,000 | & j0.42| DAM SETTLEMENT SURVEYS { $8,722 so} so] $0] $0} so] $0} | so} $0} $0] $0} | $8,722) $727) “$8,000 | H T T T T t aoe |081| SUPPLIES AND MATERIALS $580) sse0| $580) $580! $580) $580 $580] $580 $580) $580] $580} $580! $6,963) | $580 can as | \ | 4 4 i | $25, 1 | | ! | } | t | | { tT I a TOTAL $15,057 $5,100] $5,100 35,100 $5,100) $5,100) $5,100) $5,100] $5,100] $5,100] $5,100! $5 cc $71,159) $5,930) | 1 | 1 t LT T L { | i | ! i El l ! Tt 538 |__ ELECTRIC PLANT OPERATIONS. T I t H I T 1 tt 1 T 12} [0.011 PERSONNEL (Site Labor) $12,914) $12,914] $12,914 $12,914 $12,914) $12,914) $12,914, $12,914 $12,914) $12,914) $12,914) $12,914; | $154,968) | $12,914) J Li [0.41] TECHNICAL TRAINING $6,464) oH ‘$0 $6,464) $0) $0} $6,464] ‘$0! cH $6,464) $0) ‘$0; $25,854 $2,155) $23,000 ui UNIT BALANCING AND EQUIPMENT T | | | [048 | enna aciareme $0 $0} so! so] so| so $0 so sol so $0 so} | $0) $0) 0 | 7 10.61! SUPPLIES AND MATERIALS $858 $858) 3858) 3858) $858, $858) 3858) $858 $858) se5a $858) $858 i Host 3858. = a] i 1 { [ i i cl = T TOTAL $20236|_Si3772| $13,772] $20.26] Sta7721_$t3.772\_$20236[ $13,772 sia772|_ $20,236, $13,772{_st3.77at_ | $191,122) $15,927 | TT I t t fi t 1 i | | | { | el | I if ! | | | 1 | | | {i | | aa HYDRAULIC POWER GENERATION | | | | | | | ] | \| | OPERATIONS I | | | i i i] j0.01 PERSONNEL (Site Labor) $6,457) $6,457) $6,457) $6,457, $6,457, $6,457) $6,457) $6,457) $6,457) $6,457 $6,457) $6,457] $77,484) $6,457 Ll] Toe PROCUREMENT: ACCOUNTING:AND $3,761 $3,761 $3,761| $2,761] $3,761, $3,761 $3,761 $3,761 $3,761 $3,761 $3,761 $3,761 $45,137 $3,761 | | 1 B.03)| FC CERICAL ENVIRONMENTAL AND $4,275 $4,275 $4,275| $4275) $4,275 $4,275 $4,275 $4,275 $4,275) $4.275| $4,275 $4,275 $51,294 $4,275 i HOUSEKEEPING SERVICES FOR CREWS 1 | T | 1,591 | Joos | CRISTEA $0) so! 736] $0) so, $0} so} so| so $0 $796 so | s | $133) | 1 | | j | | | | jo22| HELICOPTER TRANSPORTATION | $4,132) $4,132, $4,132) $4,132) $4,132) s4.12| $4,132) $4,132) $4,132! $4,132! 4.122] fea | $49,589} $4,132, aso . 4 1 } j ! 4 i ~$15, ! | T | 1 1 T 1 T 7 T 7 1 (0.43| FIXED WING TRANSPORTATION \ $5,341) $5,341 $5,941, $5.41) $5,341! $5,341] $5,341) $5,341] $5,043] $5.41) $5,341] $5,341) $64,091) | $5,341) Seal | F } j } 1 jt “320! [0.44 | _ BARGE SHIPPING AND DOCKING | $0} so} $9,778) $0! $0} $0) so} $0 { $9,778; $0} so] | $19,556! $1,630} | [0.45] _UPS/FEDEX SHIPPING CHARGES $190 $190) $190) $190) $130! $190] $190} $190, $190) $190) $190) $190) | $2,278) | $190) oat 1 | 1 } } 0.50| TELEPHONE CHARGES $954) $954) 95a] $954) s964| $954] $954) $954 3954) ss64] 054] $954] $11,449) $954) Seca L i 1 $12, (0.51 | _CMMS SOFTWARE SUPPORT $3,090] $0! $0) $0] $0) $0) $0) $0) so! $0} $0) $0] $3,090! | $258] $3,000 | \ t 1 1 i j T =a 0.52} CONTRACT/LABOR LEGAL SERVICES, | s264) $264 $264) $264! s254! $264) $264) $264 $264" $264 i 3264) $264) $3,185, =" $13,000 c i i i 4 1 7 pt 10.60} GASOLINE AND DEISEL FUEL | ‘so! so) $0} $20,816 so! $0, $0} ‘$0! $0. $20,816) $0} so! | $41,633, | $3,469] -$8,000 | 1 [0.81 | SUPPLIES AND MATERIALS | $972) $972) $972) $972| $972] $972) $972) $972) $972) $972) $972| $372) | siteso | $972) | ! { T 1 t t { | i t t ie) Lt | 1 ct {TOTAL |___320.436] $26,546, __$36.910| 847.162) $26,346 $26,346 $26,346) $26,346, $26,346] $56,940) $26.345| ($382,016, [$91,695 | it I Ee i i | | H i } L i t a t t t i sail MAINTENANCE SUPERVISION AND ENGINEERING | {0.01 | HEA BRADLEY MANAGEMENT | $9,121 $9,121 $9,121] $9,121 $9,121] $9,121] $9,121 $9,121| $9,121 $9,121] $9,121/ $9,121] | $109,456) $9,121] | {0.03 | ENGINEERING $1,319 $1,319] $1,319] $1,319] $1,319] $1,319 $1,319) $1,319 $1,319 $1,318 $1,319] $1,319] | $15,826) $1,319 Lt | | i i T | | TW | TOTALS $10,440; $10,440] $10,440) _$10.440| $10,440, $10,.440| _$10.440| $10,440) $10,440; $10,440, _$10.440) $10,440, | _$125283' | $10,440 im T ct Cl t 542 MAINTENANCE OF STRUCTURES | i j ! | a 1 { (0.01 | PERSONNEL (Site Labor) i $3,228) $3,228) $3,228] $3,228] $3,228| $3,228) $3,228) $3,228) $3,228) $3,228! $3,228) | $38,742| | $3,228) | [0.61 | SUPPLIES AND MATERIALS $255 $255) $255 $255) $255 $255] $255] $255] $255) $255] $255] $3,060) $258] $2,000 _| Lack | 0.71] ARCHITECT REVIEW OF VARIOUS BUILDINGS | $2,500 $2,500 $2,500 $2,500] $2,500! $2,500] $2,500] $2,500! $2,500 $2,500) $2,500] $30,000) $2,500] 0.81 | EQUIPMENT AND MACHINERY I $334) $334 $334] $334) $334 $334] $334] $334] $334/ $334 $334! $4,008] $334/ l i i i I | TOTALS $6,317, $6317 $6,317, 36317) 36317, $6,317 $6,317 36317 36317 $6317) $6317 36,317 $75,808 $6317, f | MAINTENANCE OF RESVERVIOR, DAM, i AND WATERWAY i | To.01 | PERSONNEL (Site Labor) $1,937 $1,937| $1,937| $1,937! $1,937] $1,937 $1,937 $1,937 $1,937) $1,937 $1,937, $1,937] $23,245) $1,937 im 0.41] CIVIL ENGINEERING $2,688) so} $0 so} $0 $0 $0} so] so! $0 so} so! | $2,688 _| 0.42| _NUKA REPAIR | $0) $3,080 $0 so] $0] so! $0! $0} so! $0} so} so! | $3,090) | $224! $3,000 | Ever 10.71 |POWER TUNNEL ORAIN CLEAN & INSPECT | $10,000] $20,000] ‘$0 $0 ‘So; ‘s0] ‘$0; $0) ‘sol so} $0 ‘so! ‘$30,000: f $2,500] 1 | { | { =} | i { | | - TOTALS $14,625| $25,027) $1,937] $1,937/ $1,937] $1,937 $1,937) $1,937 $1,937] $1,937] $1,937, $1,937) | $59,023) $4,919) 1 TT | | l I ! i i i i I i T | 34al MAINTENANCE OF ELECTRIC PLANT | + | 10.01 PERSONNEL (Site Labor) $19,371 $19,371) $19,371 $19,371) $19,371) $19,371 $19,371 $19,371 $19,371 | $19,371! $19,371) $19,371 $232,452) $19,371 ] fo21| TRAVEL siei] $161 $161 $161| $161] $161! $161] $161] $161 $161 $161 $161) | $1,937 $161 | |o.42 |" MISCELLANEOUS SERVICE CONTRACTS $0 $0) $0] $6,257] $0) $0) $0) $0 $0) $6,257 $0) $0) $12,515) $1,043 | 1 T | | | “T Expr lo.4a j ! 16,241 1,353 RELAY MAINTENANCE | $16,241 $0 so $0. $0) = $0. $0) so) so $0} =a $ | $1,953) esisue0 | re [061 | SUPPLIES AND MATERIALS $1,822 $1,822) $1,822 $1,822| $1,822| $1,822) $4,822) $1,822) $1,822) $1,822 $1,822] $1,822] $21,860) | $7,822 a [0.71 |_LONG RANGE MAINTENANCE STUDY _| $3,333 $3,333 $3,333 $3,333] $3,333] $3,333) $3,333) $3,333] $3,333) $3,333] $3,333) $3,333] $40,000) $3,333] t 1 t | t t +— 4 j TOTALS, $40,928, $24,687) _—$24687, $30,945, $24,687| _$24687| $24,687, S24687| —-S24687| $00,945| _—$24,687| —-S24,687 $325,004) $27,084) L 1 | a | | i | | i | | i | aaa MAINTENANCE OF MISCELLANEOUS | | | HYDRAULIC PLANT | t | i | 01 | PERSONNEL (Site Labor) $12,914] $12,914 $12,914/ $12,914 $12,914 $12,914 $12,914) $12,914) $12,914) $12,914) $12,914 $12,914) | $154,968 $12,914 | 42 |__MISCELANEOUS SERVICE CONTRACTS $0] so $1,700) $0 $0] $0! $0] so! $1,700) so] $0] $0) | $3,399) $283 | jv.61| SUPPLIES AND MATERIALS $1,638) $1,638 $1,638 $1,638 $1,638) $1,638) $1,638 $1,638] $1,638] $1,638 $1,638 $1,638) $19,652) $1,638 $0 | ai t | [ [ | ! TT I | | TOTALS | _$14552) $14552| $16,251, $14,552) $14,552, _—-$14.552| $14,552) $14,552) $16,251; $14,552| —$14.552| —-$ 14,552, $178,019) | $14,635) T 1 T T i { i { T ct LI | t i T T T T T T T Ct iI T t mt 556|__| SYSTEM CONTROL AND LOAD DISPATCH | | | | | i i == | t + 4 [0.01 | PERSONNEL | $3,228! $3,228) $3,228) $3,228) $3,228) $3,228) $3,228] $3,228) $3,228) $3,228) $3,228 $3,228) | $38,742) | $3,228 i ‘SCADA SOFTWAREIHAROWARE T 1 1 al ] 10.421 aAINTENANGE, $421 $421 $421 $421 $421) $421) $421] $421! $421) $421 $421 $421 $5,049| $421] $4,000 _| Mal Toei | SUPPLIES AND MATERIALS | $450 $450) $450) $450) $450] $450/ $450 $450) $450) $450, $450) $450) $5,404! | $450) $9,000 | Ex i { T 1 I [ T T I I it mi i CT | TOTALS i $4,100" $4,100) $4,100] ‘$4,100! ‘$4,100! $4,100] $4,100] $4,100. ‘$4,100! $4,100] $4,100! $4,100 | $49,195] | ‘$4,100 i t 1 1 1 i T i 1 | i Tt ! I | T { i ! { | im ft | i O&M PAGE TOTAL | _ $174,547] $149,198 $138,381! $159,645! $126,108] $126,108) $132,571) $126,108, $169,422 $126,903 $125,108 ! S1582.304) [__$140,242/ { My T T T T T iE T T T T Page 10 7 I i | I T T 1 } \ Y T CAPITAL PROJECTS | | | | | | | | sat ‘STRUCTURES AND IMPROVEMENTS | | | | TOTALS $322,108] $295,080] $241,482| $271,862) $225,810 $225,810, $232,274] $225.810| $230,909 _$281,640/ $226,606] $225,810] | $3,015,203) $251,009) r | L | \ | | |332,_ | _ RESERVOIRS, DAMS, AND WATERWAYS | | |-_[oat/caTHODIc PROTECTION REPLACEMENT $20,000] $20,000; __ $25,000! $0] 30 30 30) $0! 30 $0} $0; $0) $65,000 $5,417) , i { | | | | t t | { [_[" rorats $20,000; $20,000, $25,000 so] $0] 30] Sor 30} $0. $0] 30) so, 1 $65,000) 35.417) | tT | t 1 WATERWHEELS, TURBINES, AND me GENERATOR t | | t $0 $0} i i 1 SO $0} { 1 i |" TOTALS | 30) $0! $0 $0) 30. 30 30 30 30 307 sof | 30) $0) | i + f t i 334 ACCESORY ELECTRIC PLANT ! ta] 10.01] POWER & FIBER CABLE REPLACEMENT | COMPLETED $0] $0] so] so} so $0 $0 $0 so $0 so] | $0 $0 Too2| REPLACE SRADLEY RFLS [COMPLETED] $0) $0) $0) $0} $0 so} $0 so| sol so! $0} $0 $0] [0.03 | REPLACE POWER SYSTEM STABILIZER so! so] $0 so $o! $0 $0} $20,000 $50,000] $50,000] $40,000) —_ $40,000! '$200,000] $16,667| Joos | REPLACE 2RTUs $10,000’ $20,000] _$20,000| $0 sol $0] $o| $0 so $0} $0) so} | $50,000] | $4,167 | lal T | | | | | [ |_| TOTALS [$10,000] $20,000! $20,000 $0) Sop 30) $0] $20,000] $50,000] $50,000} $40,000] __ $40,000) $250,000! $20,633 i + + ; t [ | | [ | | | | I | + ~ { t t 335 MISCELLANEOUS POWER PLANT EQUIPMENT, | \ | ]o01 | MAN-LIFT ' COMPLETED] so! $0) so] $0 $0 so] $0] $0} $0 so! sol | so] so Jo.o2 | SNOW PLOW ATTACHMENT T COMPLETED) $0 $0! $0} so $0 $0) sol $0} $0 $0] so] | so} so! loos | | li I i ] 1] | | | | i 0.03 | TRUCK/AMBULANCE i $0) $45,000) so| $0) $0) $0) so) so} sol F) so] so) | $45,000] $3,750 s3h000 | oo l0.04 | MOWERATTACHMENTFORLOADER | _—_—_$45,000] $0} $0 $0 so} $0} EJ so] $0] $0 $0} sol | $45,000 $3,750 0.06 | HALON FIRE SYSTEMREPLACEMENT __| $0) so} $0} $0) $0} $0) $0 so] $0 $0} $10,000 $5,000] | $15,000] $1,250! 0.07 | _ FIRE WATER CONTROL VALVE REPLACEM $0] __ $30,000] so} so! $0} $0 $0 $0} $0 $0 $0 so| | $30,000} $2,500) (0.09 | SMALL MILLING MACHINE $0) $0 $0 $0} so] $0 $0) so $0] $0] $20,000 $0 $20,000] $1,667| | | 1 | TOTALS $45,000 ___ $75,000. 30 $0 $0} 30 $0) $0} Et 30; $30,000 $5,000 $155,000! $12,917, H T T T i i 1 $155,000! _| i | T H T { t T i t | 336 ROADS, RAILROADS ANO BRIDGES | ! t | | | i t | fo Of | CULVERT REPAIRS |__ $100,000 $200,000; $200,000] $200,000, $100,000 cl $0) $0} 30 sof $0, $0! | __ $800,000 $66,667! T T ! i if y | 1 1 i | T | 1 aE TOTALS |___ $100,000" $200,000; $200.000/ $200,000} $100,000 $0] ‘$0; $0] $0] ‘so! ‘SO! Sof '$800,000] | $66,667, t =| i T t T t T t t | 1 { { ! { E |_| TOTAL FOR CAPITAL PROJECTS | $507, 108| $610,080| $486,482| $471,862 $325,810 $225,810] $232,274" $245,810] $280,908] $331,640] $296,606) $270,810! | $4.285,203) $356 643} 1 i T I t i t i T 1 ! Page 10 1 { 1 i | 1 i L } I { OTHER PROJECT COSTS | | | ! | } | 571 MAINTENANCE OF OVERHEAD LINES I { { ri [ 0.20 | GENERAL MAINTENANCE $3,0941 $3,094) $3,094) $3,004) $3,084) $3,094) $3,094) $3,094) $3,094] $3,094) $3,094) $3,094" $37,132|_| $3,094; 10.21 | ROW CLEARING 1 $0) $0) $0, $0 $0} $0; $47,862] $47,862; $41,882] «$47,882 $0] $0] $167,530) $13,961) ~$100,000 0.25 | LINE PATROL Tt so} $0} $0] $2,387 $0) $0} $0] $0} $0} $2,387 $0} $0 $4,774) | $398] $1,000 | Ex t t 27 | eS NO MPSION TOWER EROSTHACKING $0) so} $70,000|_—_$70,000 so! $0 $0) $0 so] so so so} | $140,000 T 1 = | I 1 | TOTALS $3,094) $3,094] '$3,094] $5,481) ‘$3,084 $3,094) $44,977) $44,977) $44,977 $47,363 $3,094 $3,094] | $349,435 '$17.453) a iB | { | T | I | i. i i { tT I ia 925 SAFETY RELATED EXPENSES 1 I | ! [ { | (050, GENERAL LIABILITY INSURANCE, | $531 $531) $531 $531 $531 $531 $531] $531 $531 $531 $531 $531 $6,370! $531] | 10.50 [AVIATION INSURANCE Tt ___$35751 $3,575 $3,575 $3,575 33.575) $3,575 $3,575) $3,575 $3,575 $3,575 $3,575 $3,575! $42,900| | _ $3,575 | i | | T tet tt f H | TOTALS i $4,106] $4,106) $4,106] $4,106] $4106] $4,106 $4,106] $4,106! $4,106! $4,106. $4106] $4,106; | $49,270) | $4,106; 1 I t 1 E ! Ti (m=) I Ti ! | 1 I cI { t TOTAL FOR OTHER PROJECT COSTS. $7,200) $7,200 $7,200|___ $9,587 $7,200 $7,200] _$49,083/ $49,083! $49,083; «$51,469! $7,200) $7,200) $398,705! | $33,225! T | I i CI T T i H T i I t t T 1 1 dl ! | | ! i it | 1 | | | { | TT PROJECT TOTALS $688,855 $766,478, $632,063) $641,094, $459,118) $359,118 $413,928) $421,000 | $457,798) $552,532, $430,709 $404,118 | $6,366,811) | $530,310. 1 I i I T I I T Lt im t l Page 10 HEA/BRADLEY LAKE STAFFING PLAN WORK SHEET PROJ_-T ae RATE | ANNUAL | = = POSITION DESCRIEUON 7 = type | AMOUNT | MANAGEMENT | =| Sa ee a JHEABRADLEYMANAGEMENT Salary, | $392,732; ENGINEERING a _ a Salary $21,102 [TOTAL MANAGEMNET AND ENGINEERING : __|_$333,834[ ADMINISTRATIVE = = = = |CLERK = - Salary | ‘$42,839 ENVIRONMENTAL Se sees = Salary _ het $2,357) aoe JOSHA/SAFETY - =e a |Salary | _ $3,388} =e |LAND MANAGEMENT. = _ [Salary _ _ $2,710 EEE TOTALADMINISTRATIVE Se $51,294 ieee JOPERATIONS AND MAINTENANCE LABOR =a! POWER PLANT OPERATOR iz RT _| ___ $399, 454} ie a _ _ ra ROT _ $18, 820] OPERATOR APPRENTISE i Sa TEMPORARY MAINTENANCE WORKERS PROCUREMENT, ACCOUNTING, AND PERSONNEL PC / LAN MAINTENANCE i Salay | _—_—$9,597 = RT _ $60,351 2 ae —_|RT | $34,298) $104,246 TOTAL OPERATIONS AND MAINTENANCE LABOR |_| __ $774,839] = PROJECT. ACCOUNTANT a i ACCOUNTANT _ os ACCOUNTS PAYABLE = PURCHASING AGENT HUMAN RESOURCES INSURANCE | WAREHOUSEMAN CONTRACT ADMINISTRATION TOTAL PROCUREMENT, ACCOUNTING, AND PERSONNEL TOTAL ALL STAFF sees —_ | $1,205,105] Estimated increase during the fiscal year Represented Employee: REGULAR REGULAR TIME. &HALF HEA/BRADLEY LAKE FY 2009 CAPITAL PROJECTS MONTHLY WORK SHEET PROJECT RUNNER REPLACEMENT GOVERNOR UPGRADE POWER ANO FIBER CABLE REPLACEMENT REPLACE BRADLEY RFLs POWER SYSTEM STABILIZER REPLACE TWO RTU's MAN-LIET SNOW PLOW ATTACHMENT TRUCK / AMBULANCE CULVERT REPAIR CATHODIC PROTECTION REPLACEMENT HALON FIRE SYSTEM REPLACEMENT mo ACHMENT FOR LOADER FIR CONTROL VALVE RES 7 SM 1G MACHINE TOTALS Previous Previous years years CEA Expenditures $776,738 $776,738 HEA Expenditures $1,464,705 $5,175,469 $1,727,728 $22,958 $5,147 $1,000 $8,397,006 FY 2008 YTO ACTUAL July - December 2007 $324,748 $46,564 $610,955 $228,135 $0 $15,694 $73,900 0 s $1,299,996 Jan-08 B s8ssss ess $12,000 Feb.o8 sees FY 2008 Estimates Maro8 $0 30 so so $0 $20,000 $0 so so 000 $40,000 Apros esses $78,000 Mayo8 so $0 $55,000 Jun-08 $157,208 $197,208 FY 2008 Totals $481,956 $46,564 $680,955 $228,135 $0 $80,094 $73,900 $12,000 $35,000 ‘$80,000 9,204 FY 2009 ESTIMATES FY 2009 Julos ——Aug08 ——Sep08 Oct-08 ~—Nov.08 ~—_—Dec-08 —Jan.09 —_—Feb09 ——Mar-09 prod May09 —_Junoo Totals COMPLETED $0 so ‘COMPLETED 0 TOMPLETED $0 30 30 30 30 ES) 30 ‘30 $20,000 $50,000 $50,000 $40,000 $40,000 $200,000 $10,000 __$20.000__ $20,000 $0 $0 30 $0 $0 $0 $0 $0 $50,000 $0 $0 $0 $45,000 $0 so $0 so so $0 $0 30 $0 $0 $45,000 $100,000 $200,000 $200,000 $200,000 _ $100,000 $800,000 $20,000. $20,000. $25,000 365,000 $10,000 $5,000 $15,000 $45,000 $45,000 $30,000 $30,000 ‘$20,000 $20,000 $175,000 $315,000 $245,000 $200,000 $100,000 so $0 $20,000 $50,000 $50,000 $70,000 $45,000 $1,270,000 >roject totals $1,946,661 $5,998,771 $2,388,683 $251,093 $200,000 $135,841 $73,900 ‘$12,000 $80,000 ‘$881,000 $65,000 $15,000 ‘$45,000 $30,000 ‘$20,000 $12,142,948 Con HEA/BRADLEY LAKE PROJECT CONTRACT SERVICES WORK SHEET f “ACCOUNT| ts =:5:= ~ | ANNUAL NUMBER | ooeesasae aaa fa 535.42 |OFFICEEQUIPMENT MAINTENANCE =———séz|=CsCs«éS1,236 537.42 |DAMSETTLEMENTSURVEYS ——ss—“‘;SSC*dSCC*CéSB;«Q 538.43 |EQUIPMENT VIBRATION ANALYSIS =|. 539.04 |HOUSEKEEPING SERVICESFORCREWQTRS —s|_—_—s$1,591 | 539.42 |HELICOPTERAIRTRANSPORT —s—s———sid| ~Ss$49,589 | 539.43 |FIXEDWINGAIRTRANSPORT —s—————i‘Y«SC‘i‘(;éSG 4A 539.44 [BARGESHIPPING sd _ $19,556 539.45 _|UPS/FEDEX SHIPPING CHARGES. | $2,278 539.50 | TELEPHONE CHARGES $11,449 __ 539.51 |CMMS SOFTWARE MAINTENANCE | $3,090 ~ §39.52. |CONTRACT/LABORLEGAL SERVICES ———i‘zL|=SCsC*«éS 31065 __ 542.81 |APPLIANCE REPAIR/REPLACEMENT _ | $4,008 EARTHQUAKE MONITORING MAINTENANCE 544.42 |DIGITALINFRAREDSURVEY $12,515 OVERHEAD CRANE INSPECTION. 544.44 |RELAY REPAIRS $16,241 545.42. |SEWAGEPUMPING Tesi $3399 __ 556.42 |SCADAHARDWARE/SOFTWARE MAINTENANCE —_—|_——_—«$5,049 925.50 |GENERAL LIABILITY INSURANCE |S «86,370 925.50 |AVIATIONINSURANCE —<—™——CS§L |_ $42,900 __|TOTALCONTRACTSERVICES =———CidSCt*ié&S2555,2A4B —_———| a peepee _ HEA/BRADLEY LAKE PROJECT MATERIAL AND SUPPLY WORK SHEET “ACCOUNT _ NUMBER — DESCRIPTION SUPPLIES A AND MATERIALS |SUPPLIES AND MATERIALS _ ISU IPPLIES AND MATERIALS 535.61 537.61 |GASOLINE AND DIESEL FUEL _ [SUPPLIES AND MATERIALS _ SUPPLIES AND MATERIALS _ SUPPLIES AND MATERIALS | [SUPPLIES AND MATERIALS SUPPLIES | AND MATERIALS _ TOTAL MATERIALS | AND SUPPLIES _ ANNUAL COST $2,488 _ $6,963 $10,300 _ $41,633 $11,659 ___ $3,060 _ $21,860 $19,652 _ $5,404 — $123, 018 POWER & FIBER CABLE REPLACEMENT SUMMARY Revised budget (Total Project) Original Estimate Revised Estimate Revised Estimate (Power Engineers) 2/8/07 2/30/08 $2,046,063 $2,540,184 $2,388,683 SSNs oa SS 13 16 2; 14. 15. Neve) 18. 19. 20. ats 2. 23. 24. 20: 26. 2, 28. 29. 30. 31. 32. 33. 34. 35. Punchlist of open items on the Bradley Lake power and fiber cable project.. Get LMR channels 1,2,3 Working. Get Coastcom DIGI console ports working and logged to the prints Foam entry ports for coax and Foam floor holes and foam between arctic entry way and building otherwise snow will drift in and pile up on the equipment. Install phone on outside of building in the arctic entry way for emergency use. Building locked with substation lock. (Block Long Distance Calling?) Storage cabinets for microwave building. Move GPS antenna location. Reset amplifier for LMR to nominal voltages. Update all prints for correctness of ports and add IP addresses and permanent information notes to the print Test fibers with power meter. Build spreadsheet with baseline levels . Remove old temporary fiber and copper circuits 11, Verify and place software documentation and support cables for M13 Adtran Mux Digi Transitions networks Coastcom and all other equipment at site for configuration Fix telnet to remote Adtran Mux at the Powerhouse. Fix Digi connections to all Coastcom at powerhouse, microwave, and dam. Take extractor tool and pin out DB25F connectors correctly and test with Ethernet. Cleanup and tie-wrap all wiring put in stress relief for 2815 media converters. Install a hands free speaker phone in microwave building. Fix phones at dam site. Replace inverter at microwave with stronger unit. Remove old fibers and Canoga Perkins at Dam and tie-wrap all remaining Document dam fibers. Document the multimode fibers in dam from communications room to RTU cabinet. Draw prints listing fibers by colors. Remove old Canoga Perkins at old microwave building and recover channel banks at old microwave site. Remove old whip antennas at old microwave sites. Re work rack at powerhouse for LAN. Put Cisco 2629 in 19 inch rack. Re-cable and mark all ports for SCADA or corporate. Re-cable all cables to correct length from switches to workstations Install patch panel for cables and a shelf for media converters for LAN. Re-splice fiber at powerhouse, old microwave site, and dam for later use by state. OTDR fiber for breaks. Relocate channel bank A at powerhouse to new rack Remove old DSX. Re work battery connections at powerhouse. Re-terminate with correct connectors thru fuse panel and install a wall mount battery disconnect. Mark cross connects at dam and powerhouse. Draw a print of the wireless network at Bradley for future use. Figure out if the ultra radio phone actually works and how it is connected Document (as-build) cable route of the fiber to the control room RTU cabinet. Draw prints of Alpha server to CEA RTU cabinet fiber Draw prints or document CEA RTU Coastcom RLB connection to Bradley Lake system or throughout system back to Anchorage. Include CEA data on their DACS and all their connections. Document phones switch at Bradley Lake. RFL REPLACEMENT BUDGET ESTIMATE REVISION Original Estimate (budget). Inadequate budget estimate: The scope of the project was underestimated due to the lack of complete understanding of the existing equipment condition.. Previous year’s budget estimates were used without a complete review of the job scope. Inadequate overheads applied. Communications problems with setting up the Mirrored bits: This was the first use of mirrored bits over CoastCom equipment by present HEA personnel. The guidance followed was SELs documentation on how to make mirrored bits work, which of course didn’t work, even after verifying paths ahead of time in terminal mode. This added significant labor time until CEA came through with how they made it work on their system (which was totally counterintuitive). RTU interfacing and other unforeseen problems: There were several ‘discoveries’ made during the design process that resulted in added design and construction time. Major ones were items such as the “relay trouble” annunciators were actually wired to the relay trip outputs. Another example is that because of 311C output limitations, an interface had to be added to the CEA RTU for the Bradley scada system (requiring fiber runs, database work, coordination with CEA, etc). These necessitated a lot of additional efforts to resolve and increased the scope of the budget based on just changing the relays and leaving everything else alone. Correction of existing design errors: Problems were found with the existing systems related to Breaker Fail trips and tripping of units if the Soldotna line should trip (can only run one unit due to grid stability issues). Investigation and correction added many hours. Incorrect drawings: When the design was started, it quickly became apparent that what was actually in the field was not always on the drawings. This necessitated significant hours investigating the equipment during design, construction, testing, and final as-build. Revised estimate/budget as of 2/8/08 $85,000 $71,567 $7,157 $21,470 $21,470 $21,470 $228,135 50% 5% 15% 15% 15% 100% CATHODIC PROTECTION REPLACEMENT Here is our response to the requested work items for the Bradley Lake Hydroelectric Dam Cathodic Protection upgrades: 1. Two new cathodic protection rectifiers estimated cost $ 5,000 each plus $15,000 for installation each. 2. Assist in specification acceptable for purchasing, $1,500. 3. Prepare a set of workable drawings for installation of the new rectifiers including all engineering and 2- site visits, one for design and one for commissioning, $20,000. jTotal budgetary estimate $61,500. All work by Coffman Engineers, Inc. would be based on time and expenses. Our rate schedule is attached. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES (via teleconference in the AIDEA/AEA Board Room) Anchorage, Alaska Tuesday, March 11, 2008 — 10:00 a.m. 1. CALL TO ORDER Chair Evans called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:00 a.m. on Tuesday, March 11, 2008, from the AIDEA/AEA Board Room, Anchorage, Alaska, to conduct the business of the Committee per the agenda and public notice. 2; ROLL CALL Roll was called by Shauna Howell. The following members were present: Bradley Janorschke (teleconference) Homer Electric Association Brad Evans Chugach Electric Association Brian Newton (teleconference) Golden Valley Electric Association Wayne Carmony (teleconference) Matanuska Electric Association Jim Posey Anchorage Municipal Light and Power Tim Barnum City of Seward Bryan Carey Alaska Energy Authority 3. PUBLIC ROLL CALL Shauna Howell, AEA Christa Caldwell, AEA Kirk Gibson, BPMC Charlie O’Hare, HEA Don Zoerb, MEA Page 1 of 6 Rick Baldwin, HEA Linda MacMillan, AEA Rick Miller, AML&P Henri Dale, GVEA Doug Hall, AML&P Bob Price, AML&P Bob Day, HEA Mike Cunningham, CEA 4. PUBLIC COMMENT There were no public comments. 5. AGENDA COMMENTS There were no agenda comments. 6. APPROVAL OF MEETING MINUTES - February 4, 2008 MOTION: Mr. Posey moved to approve the minutes of the February 4, 2008 meeting. Seconded by Mr. Newton. Mr. Carmony noted two comments: In item 7B, line 4, add ..and they verbally concurred..., and in line 6, replace the word form to request. The meeting minutes were unanimously approved as amended. 7. NEW BUSINESS 7A. Budget ’08-‘09 Mr. Cunningham spoke about the overview with budget detail involving increases and decreases in the budget. The bottom line being FY09 utility contributions would amount to $16,881,542. Ms. MacMillan noted that they took out $100,000 for contingencies. The bond agreement requires that there is a certain percentage of the estimated operating budget sitting in an operating reserve should there be a cash flow problem. Since the operating budget didn’t go up, the same level of increasing the operating reserve this year that we did last year isn’t necessary. The debt service — the principal has gone down by $900 for next year. The biggest increase has to do with the renewal and contingency fund. That is a fund within the bond agreement that is supposed to be funded up to at least $5M, but then is a borrowing account for the utilities for large repairs. It has been used in the past heavily for runners and governor projects. The amount to repay is increasing this year, and in addition, the other portion of that increase has to do with interest in the fund. Other increases in the budget include studies for long range maintenance of structures/buildings, and this year is for a one-time tunnel draining and cleaning inspection. There is an increase cost for Schedule-A capital for vehicles or equipment as needed at the plant. Arbitrage has also been going up — that is a projected increase in how much we will be paying arbitrage, which is a payment to the IRS when the rate Page 2 of 6 of the bonds is better than it should be than the amount of interest we’re paying on the bond funds. Mr. Carmony asked about an increase of 58%. Mr. O'Hare stated that in 2007 they didn’t have the manpower to take care of all the projects they had budgeted for and a lot of the O&M didn’t get done because the correct staffing wasn’t in place to take care of the things that were budgeted. The 2009 budget has risen a bit higher than expected partly because some of the studies proposed by the O&D committee have been placed back into the O&M portion, which is outside of our normal O&M. The O&D feels they need to do that at Bradley, as well. The other is the architectural study -- a study of the facilities at Bradley Lake. It’s becoming crowded with the manpower that is required there, as well as the large number of vehicles/equipment sitting out in the elements. They are looking to put up a shed and possibly splitting a couple of the duplexes to allow for additional manpower. The difference between 2007 and 2009 is that maintenance didn’t get done that should have because of the lack of personnel. Mr. O’Hare will prepare a write-up the difference in costs and will disburse to the committee. MOTION: Mr. Newton moved to accept the budget, seconded by Mr. Posey. Mr. Carmony noted his objection to the $25,000 in the legal budget. A roll call vote was taken with City of Seward, CEA, HEA, GVEA, AML&P and AEA voting yes, and MEA voting against, as based on the above noted objection. 7B. O&M Agreement Mr. Carey stated that the O&M agreement is in more of a final-draft form as of now. AEA has a new Executive Director and he has not been briefed on the draft O&M agreement. He expects to brief the new Executive Director on the proposed O&M agreement, and shortly after that will be going out to the utilities for comment. Mr. Gibson added that the current O&M agreement is one that has been renewed on an annual basis and we are now going forward and creating a longer term agreement. Mr. Carmony asked if this O&M agreement has been drafted and not released for review? Mr. Carey responded that it has not been released to all of the utilities due to AEA just receiving a new Executive Director who has not yet been briefed. Chair Evans asked that the reason it is being re-drafted is because there is a proposal on the table that we’re going to go to a multi-year O&M agreement instead of a single year and are trying to conform that agreement to a multi-year? Page 3 of 6 Mr. Carey responded that the original agreement was done back in the 90s and needs to be revised and modernized. He expects that a draft will go out shortly after the new Executive Director of AEA approves it and then it will be sent out in draft form for all the utilities to comment. The editing and proposed changes are being done by AEA and HEA. The other utilities are not involved in the discussions at this point. Mr. Carmony asked if Mr. Gibson or AterWynne has in any way shared any part of that proposed agreement with anyone at GVEA. Mr. Gibson replied that he has asked questions with GVEA for clarification or other issues. Mr. Janorschke asked Mr. Baldwin to add clarification. It is Mr. Janorschke’s understanding that the state wanted some changes that would have impacted HEA as the operator, and has a hang up - until HEA and the state resolve that issue as the contractor for the state’s assets, and after those issues were resolved then it was understanding at that point then the draft O&M agreement would go to all the participants. Until HEA and the state had their point of contention addressed and resolved, there was really no point in furthering it for input for the rest of the participants until those issues were off the table. Mr. Baldwin added that the O&M agreement is between AEA and HEA subject to BPMC approval. The efficient way to do it is to have the two parties who are members of the contract put together the contract and then submit it to the BPMC for review and ratification. Mr. Carmony asked for the position of the Chair as to whether or not this process has been abused. Chair Evans said he couldn't comment, as he just stepped into the BPMC and it would be improper to comment on it. Mr. Carmony asked for a complete account of all the information that has been shared with GVEA -- when it was shared, and who it was shared with. Mr. Carmony would also like to know if GVEA has made any request for information to Mr. Gibson. Chair Evans stated that with the issuance of the draft - information would all be forthcoming with the draft as to what the discussions might have been. Mr. Posey asked what was the anticipated date for the final review and when will the other members be receiving that? Mr. Carey responded hopefully this month. Mr. Carmony asked the Chair that he request the Attorney General's office to give an opinion upon the conduct of Mr. Gibson in this affair based upon the remarks that were made by the attorney from HEA. He believes that accurately represented what was supposed to have occurred and he believes that AterWynne has acted improperly and would like an opinion on that. Chair Evans asked that Mr. Carmony’s request be moved to agenda item 8A -- under Old Business -- Legal Representation for discussion. Mr. Carmony stated he would not like it moved. The complaint you are going to take up is with regards to a long standing objection MEA has had through AterWynne’s representation, but the complaint he just lodged is very specific to a specific issue. Page 4 of 6 Chair Evans stated he does not see that it is not part of MEA’s legal representation matter that is on the agenda later. The Chair's response is that he will defer that to that discussion and MEA can adzd it to its list of grievances under legal representation under item 8A. 7C. Auditor Selection Mr. Cunningham stated that the finance committee sent out requests for proposal for audit services and three responses were received and have been distributed to the rest of the committee. Deliberations and evaluations of the responses will be taking place and in a month will come to the PMC with a recommendation to retain an auditor. 8. OLD BUSINESS 8A. Legal Representation Mr. Gibson stated that based on the discussion of the February 4" meeting, he spoke with the ethics council regarding MEA’s wish to use David Mayberry of Patton Boggs to do the discussions with AterWynne. Mr. Mayberry and Mr. Blackhurst of AterWynne spoke on February 12 and there was email correspondence between them with documents attached. That goes back to a letter from Ron Saxton to the group (August 14, 1989) as representing he would be the attorney for the group, that no representation that is adverse to the group would be undertaken by AterWynne, but that the representation of the group does not preclude Mr. Saxton or the firm from representing adverse to an individual member of the group and was signed by the BPMC. They went on to make the by-laws as to how consultants would be collected. Mr. Mayberry responded within three hours that he would let AterWynne know if he had any questions and AterWynne has heard nothing since from him. It is Mr. Gibson's recommendation to move forward with the formal opinion of the Bar. Mr. Walker added that with regards to that, MEA believes that a formal opinion from the Bar could clarify this if it is properly presented. Mr. Mayberry has reviewed the rules related to Bar proceeding and it appears to not be a type of proceeding that will allow for comment or input from other affected parties. Therefore, MEA intends to seek a formal opinion also. MEA intends to seek whatever other remedies they can find to get out from under what they see as an improper representation due to the conflict of interest between AterWynne and MEA. Mr. Carmony made the comment that the specific circumstances that were previously discussed today — these are circumstances that did not come to light until today and he believes that they are relevant to this issue and MEA will be proceeding with the inclusion with these circumstances with whatever remedies we can find to attempt to relieve this situation. 9. COMMITTEE REPORTS / COMMENTS 9A. Operator’s Report Page 5 of 6 Mr. Day reported that the lake level stayed relatively flat throughout the year and has been well managed by CEA as they brought them back into their normal range in February/March. In February the project developed 28,260 megawatt hours and used 29,412 acre feet of water, equating into a 30% load factor, which is a good, normal operation out of Bradley Lake. There were 23 flights for crew change. The plant is running very well and we are getting a number of maintenance items completed. Mr. Day also reported that 2007 was not an indicative year, as HEA was going through difficulties with staffing. It’s part of getting Bradley Lake back to where it needs to be to be managed properly. Mr. O’Hare seconded that 2007 was not an indicative year, as that was the year of the governor project and normal time was spent on that project and they weren't allowed to do the normal maintenance. We had the staff working on that project rather than normal operations and maintenance at the plant. 9B. Next Meeting Date The next meeting will be May 7, 2008 at 10:00 a.m. 10. ADJOURNMENT Meeting adjourned at 10:55 a.m. Page 6 of 6 eae Bf iphogec«.. Fale We uteri aisle Skt eae Dyxeexs rgb 0101. Wait] Onavinal Afecdeods) — eS Q LO), Vo Ae ae w— MESA. Believe Breall spi oa OR fry ctacky Seck 3 nak tap ke = bp psa pepratertecin Me Ale of mes eile. Lvg i yeliene” Has. fyterEelrns J 1A) Deb Dey» hand-osch ‘ Bradla Lake Level. Bradley Lake PROJECT MANAGEMENT COMMITTEE MEETING Mart (1, 2008 (Dat até AtTA Road “Roo (Location) PLEASE SIGN IN No. NAME S| REPRESENTING 1 OS ne Howell AEA ica ese Me +x? 3 he pes >, LE : BZiulE 4 4 KIRK Gigs BEAT 5 Christe Caleluwetl AEA 6 Lave Hace ML € 14 15 16 A ae 18 19 20 21 22 92Q2\IT9884 DATE: BRADLEY PMC VOTING HD TA. 3/ [0b Agenda Item No. ‘Roll Cell “Dud 0i-b9 va rn ee = a. oe CITY OF SEWARD 01% Ae WE [ Cg MATANUSKA ELEC ASSOC 14% _— [ZT CHUGACH ELEC ASSOC 30% Za Zt Pye HOMER ELEC ASSOC 12% ao Ya GOLDEN VAL ELEC ASSOC 17% a wera CS MUNI LIGHT & POWER 26% mt ALASKA ENERGY AUTHORITY a A=4+ OVER 51% B = AEA CONCUR With A C = UNANIMOUS D= MAJORITY VOTING METHOD A: Requiring four yeas with 51% of utilities, with no AEA vote: 1) Procedures for scheduling, production and dispatch of project power. 2) Establishment of procedures for use of each purchaser's water allocation (AEA assent required for license requirements). 3) Selection among alternative methods that do not involve AEA for funding required project work. VOTING METHOD B: Requiring 4 yeas with 51% of utilities and AEA concurrence: 1) Arranging operation and maintenance of 3) Establishment of FY estimated annual 11) payment obligation and schedule of each purchaser. 4) Determination of annual project costs after 12) each FY. 5) Evaluation of necessity for and scheduling of 13) required project work. 6) Determination of appropriate amount of 14) insurance. 7) Adoption of additional minimum funding amounts for renewal and contingency reserve 15) fund above that required by bond resolution. Determination of rules, procedures and accounts necessary to manage project when no bonds outstanding. Evaluation and approval of optional project work and compensation for such work. Application of insurance claims proceeds not governed by bond resolution. Approval of procedures and any individual utility agreements relating to electric power reserves for project. Approval of consultants. VOTING METHOD C: 8) Selection among alternate methods that involve AEA for funding required project work. Unanimous vote by all (including AEA) VOTING METHOD D: 9) Adoption or amendment of procedural project. 2) Adoption of budget of annual project costs. VOTE(93Q3/BC5272) committee rules (except dispute resolution). 10) Adoption of project maintenance schedules. Majority vote (including AEA) Election of Officers DATE: BRADLEY PMC VOTING Agenda Item No. YES NO ABS YES NO. ABS YES NO ABS CITY OF SEWARD 01% | 4. MATANUSKA ELEC ASSOC 14% CHUGACH ELEC ASSOC 30% — — HOMER ELEC ASSOC 12% GOLDEN VAL ELEC ASSOC 17% | MUNI LIGHT & POWER 26% ; ALASKA ENERGY AUTHORITY | A=4+ OVER 51% B= AEA CONCUR With A C = UNANIMOUS D= MAJORITY VOTING METHOD A: 3) Establishment of FY estimated annual 11) Determination of rules, procedures and payment obligation and schedule of each accounts necessary to manage project when Requiring four yeas with 51% of utilities, with no purchaser. no bonds outstanding. AEA vote: 4) Determination of annual project costs after 12) Evaluation and approval of optional project 1) Procedures for scheduling, production and each FY. work and compensation for such work. dispatch of project power. 5) Evaluation of necessity for and scheduling of 13) Application of insurance claims proceeds not 2) Establishment of procedures for use of each required project work. governed by bond resolution. purchaser's water allocation (AEA assent required for license requirements). 6) Determination of appropriate amount of 14) Approval of procedures and any individual insurance. utility agreements relating to electric power 3) Selection among alternative methods that do not involve AEA for funding required project work. VOTING METHOD B: Requiring 4 yeas with 51% of utilities and AEA concurrence: 1) Arranging operation and maintenance of project. 2) Adoption of budget of annual project costs. VOTE(93Q3/BC5272) reserves for project. 7) Adoption of additional minimum funding amounts for renewal and contingency reserve 15) Approval of consultants. fund above that required by bond resolution. VOTING METHOD C: 8) Selection among alternate methods that involve AEA for funding required project Unanimous vote by all (including AEA) work. VOTING METHOD D: 9) Adoption or amendment of procedural committee rules (except dispute resolution). Majority vote (including AEA) 10) Adoption of project maintenance schedules. Election of Officers Oe ALASKA Al EX. {= ENERGY AUTHORITY 10. Alaska Industrial Development and Export Authority BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING AGENDA Tuesday, March 11, 2008 — 10:00 a.m. (via electronic media at the AIDEA/AEA Board Room - 813 W. Northern Lights Blvd.) CALL TO ORDER‘ Evans ROLL CALL (for Committee members) “ PUBLIC ROLL CALL (for all others present) ~~ PUBLIC COMMENT ~~ AGENDA COMMENTS a] —y [Ap APPROVAL OF MEETING MINUTES February 4,2008 —'”” N (,; gt a ; Vet Or NEW BUSINESS DY tar Ly ) | s ae | A. Budget ‘08-09 Cott Nipper )S) B. O&M Agreement//Briew 14 rier as awe Kee C. Auditor Selection wv OLD BUSINESS A. Legal Representation COMMITTEE REPORTS / COMMENTS A. Operators Report a B. Next Meeting Date Evans ADJOURNMENT 813 West Northern Lights Boulevard * Anchorage, Alaska 99503-2495 www.aidea.org * 907/771-3000 * FAX 907/771-3044 ® Toll Free (Alaska Only) 888/300-8534 * www.akenergyauthority.org BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES (via teleconference in the AIDEA/AEA Board Room) Anchorage, Alaska Monday, February 4, 2008 — 10:00 a.m. Ue CALL TO ORDER Vice Chair Janorschke called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:00 a.m. on Monday, February 4, 2008, from the AIDEA/AEA Board Room, Anchorage, Alaska, to conduct the business of the Committee per the agenda and public notice. as ROLL CALL Roll was called by Shauna Howell. The following members were present: Bradley Janorschke Homer Electric Association Brad Evans Chugach Electric Association Henri Dale Golden Valley Electric Association Wayne Carmony Matanuska Electric Association Jim Posey Anchorage Municipal Light and Power Bryan Carey Alaska Energy Authority 3. PUBLIC ROLL CALL Rick Baldwin, HEA Don Zoerb, MEA Jim Walker, MEA Tuckerman Babcock, MEA Kirk Gibson, AterWynne Shauna Howell, AEA Christa Caldwell, AEA Rick Miller, AML&P Linda MacMillan, AEA Bob Day, HEA Charlie O’Hare, HEA Bob Drake, AML&P Valorie Walker, AEA Page 1 of 3 ae 4. PUBLIC COMMENT There were no public comments. 5. AGENDA COMMENTS There were no agenda comments. 6. APPROVAL OF MEETING MINUTES - September 27, 2007 and January 23, 2008 MOTION: Mr. Evans moved to approve the minutes of the September 27, 2007 meeting. Seconded by Mr. Posey. Mr. Carmony noted two corrections: in the roll call section Mr. Babcock should be listed, and in the public roll call section Mr. Zoerb should be listed. The meeting minutes were unanimously approved as amended. MOTION: Mr. Posey moved to approve the minutes of the January 23, 2008 meeting. Seconded by Mr. Evans. The meeting minutes were unanimously approved as presented. It was also noted that all organizations need to send AEA (Shauna Howell) a letter outlining their designate and alternate. 7. NEW BUSINESS 7A. Governance MOTION: Mr. Posey moved to nominate Brad Evans as Chair and Brad Janorschke as Vice Chair. Seconded by Mr. Janorschke. There was no discussion and no other nominations. A voice vote was taken and the motion passed: CEA, HEA, GVEA, AML&P, and AEA for the motion, and MEA opposed. WW il a | 4 >! 7B. Legal Representation Mr. Gibson gave an update on the issues raised by MEA counsel regarding the ability of AterWynne to represent the’ PMC group. e ethics counsel at AterWynne reviewed the analysis that had been done previously and it had.been concurred, and the Alaska Bar reviewed the same issue and they concurred with AterWynne’s counsel, as well. AterWynne’s ethic counsel has not talked with Mr. Walker of MEA. Once they talk with Mr. Walker, they would —form a formal opinion from the Bar and then present that to the PMC for review with complete data. In the meantime, it is asked that MEA rely on the\representation until formal opinion is issued. Mr. Gibson reiterated that he does not represent MEA, he just represents the PMC. As soon as the formal opinion is received it will be distributed. Mr. Walker has asked the law firm of Patton Boggs to participate in the formal opinion process before the Bar Association. Mr. Gibson asked if MEA would like AterWynne to contact Patton Boggs. Mr. Walker noted that would be fine —- David Mayberry will be representing MEA. Page 2 of 3 wholly (on )o eau ” al ae 8A. Operator’s Report Mr. Day stated that Bradley has been operating very well. Around New Year's there were two incidences where Bradley was exhibiting some unstable behavior when two units are in condense. They are looking into that. The lake level has been below normal, but as time has gone on, it has gotten more toward the historical average. Mr. Day noted that they are going to try and get the EPS involved to help with the analysis. The two units are pushing back and forth, and the only thing they have seen is that when both units are in condense the system is slightly loaded. It could be something in the new governors or it could be possibly the SVS. There is a European safety valve on the SF6 tank that is not factory mutual approved and that needs to be changed out. That has not been accomplished as of today. 8B. Next Meeting Date The next meeting date will be Wednesday, March 12, 2008. ADJOURNMENT Meeting adjourned at 10:15 a.m. BY: Brad Evans, Chair ATTEST: Alaska Energy Authority, Secretary Page 3 of 3 Shauna Howell From: OHare, Charles (Charlie) [COHare@HomerElectric.com] Sent: Tuesday, March 25, 2008 10:00 AM To: Shauna Howell; Brian Newton, GVEA; Henri Dale, GVEA; Eckert, Harley (Rick); Linda MacMillan; Gamble, Teresa; Kirk Gibson, AterWynne; Brenda Fuglestad; Erin Leaders, Exec. Secretary @ City of Seward; Brad Evans, CEA; Wayne Carmony, MEA; Janorschke, Brad; Jim Posey, AML&P; Day, Bob; Sara Fisher-Goad; Karl Reiche; Gary Stromberg; Christa Caldwell; Tim Barnum, City of Seward; Connie Owens, Exec. Secretary @ CEA; Bryan Carey; Brenda Applegate; James Hemsath; Susan Redlin, Exec. Secretary @ GVEA; Mike Cunningham, CEA; Brian Bjorkquist; Rick Miller, AML&P Subject: Bradley Lake Staffing Changes & Increased Labor Costs Attachments: MEMO- Bradley Lake O&M cost increase.doc All, Attached is a write-up to address the question raised during the recent BPMC meeting concerning the increase in Bradley Lake O&M costs. | must apologize for getting it out later than | had indicated | would. Please let me know if you have any questions or concerns. Thanks you, Charles O’Hare Director of Generation and Transmission Homer Electric Association MEMO: Wayne Carmony & Other Members of Bradley Lake Management Committee During our last BPMC budget meeting on March 11th in Anchorage there were some questions concerning the size of operations and maintenance (O&M) expenditure increases for the Bradley Lake Project. The nature of the identified increase was the actual FY07 to the Projected FY09, which was identified as a 58% increase. This is a valid number, but not a valid comparison due to the following reasons: The comparison is made between the FY07 “actual” O&M expenditures as compared to the FY09 “budgeted” O&M expenditures. When budgeted amounts are compared the increase is 29%. In FY09 a one time study required on the transmission line support structures due to frost heaving accounts for 9.3% of this increase and increased ROW clearing costs account for another 6.5% of the increase. During FY07 a number of large capital projects were accomplished. These projects required a great deal more support from the plant staff than initially thought resulting in labor, normally charged to O&M accounts, being charged to capital project accounts. This reduced the amount of labor charged to the Bradley O&M accounts. This has the effect of distorting the FY07 O&M numbers making them lower than what was initially budgeted for. The capital projects included the runner replacements, the governor replacement, and the fiber optic and power cable replacement project. In addition, the FY07 budget included an apprentice that we did not obtain due to insufficient time to get the apprenticeship program put in place. For these reasons the actual numbers for FY07 came in substantially less than projected in that year’s budget. In the FY09 budget we intend to operate with 3 fulltime operators, a fulltime superintendent and a part time manager. As stated in the BPMC meeting, we have noted the need for management presence on site and are therefore returning to the staffing structure in place approximately 5 years ago. We will also be utilizing the HEA “roving’ maintenance staff to supplement the Bradley plant staff on a regular rotating schedule. This will have the advantage of giving us a larger base of qualified operators to draw from and better ensure us of continuity during imminent plant staff retirements. The FY09 budget also includes funding for the apprentice position and normal increases in wages and benefits due to inflation as well as the transmission line study mentioned above which is not normally part of the O&M portion of the budget ° The Bradley Lake Project is now 17 to18 years old. As a plant ages we expect to see additional requirements for the O&M budget as more major repairs are required on the various buildings, systems and structures. An example is that of the water filtration chlorination system which failed this year quite dramatically. The system failed completely due to age. The chlorine ate a number of pinholes in the tank and piping and the system had to be replaced. This was done with plant staff and was part of the O&M work performed this year. We anticipate similar difficulties to arise in the upcoming years as the plant ages. It is my hope that this memo will provide more insight into the issues raised concerning Bradley Lake’s O&M budget for FY09. Please contact Bob Day or Charles O’Hare with any further questions or concerns. Sincerely, Charles O’ Hare Director of Generation and Transmission Homer Electric Association OVERVIEW OF BUDGET CHANGES BETWEEN FY08 AND FY09 FY08 Utility Contributions DECREASES Increase in projected interest earnings Operating budget decrease due to removal of budget for contingencies because have not used Decrease in operating reserve transfer Decrease in debt service TOTAL DECREASES INCREASES R&C transfer due to: Increased repayment due on prior year costs Decrease in fund interest earnings to apply as repayment Increase in operating for architect review of buildings and long range maintenance study Increase in operating for tunnel drain, clean and inspect Increase in operating for FERC regulatory costs Increase in capital costs on Schedule A Increase in projected arbitrage transfer TOTAL INCREASES FY09 Utility Contributions 16,389,592 254,497 100,000 43,000 900 398,397 262,500 468,585 731,085 70,000 30,000 26,363 16,454 16,445 890,347 16,881,542 BRADLEY LAKE HYDROELECTRIC PROJECT Schedule A FYO6 FY07 FY2008 INC(DEC) ACTUALS ACTUALS BUDGET BUDGET FROM PY REVENUES, EXPENSES & CHANGES IN SURPLUS. REVENUES UTILITY CONTRIBUTIONS 14,448,825 15,567,526 16,389,592 16,881,542 491,950 INTEREST INCOME 1,896,353 1,875,539 1,304,527 1,559,024 254,497 OTHER MISC INCOME ° 5,656 ° ° o o oO oO 16,345,178 17,448,721 17,694,119 746,447 EXPENSES OPERATIONS 3,212,203 2,928,813 3,670,786 3,697,149 26,363 RENEWALS/REPLACEMENTS (R&C FUND REPAYMENTS) 614,936 1,774,558 1,243,383 1,974,468 731,085 CULVERT REPAIRS oO 22,300 81,546 O (81,546) HELICOPTER PAD REPAIRS 0 165,543 0 oO O AMBULANCE TRUCK, MOWER ATTACH, MILLING MACHINE oO O 0 110,000 110,000 FIRE WATER CONTROL VALVE REPLACEMENT oO oO ° 30,000 30,000 CATHODIC PROTECTION REPLACEMENT ° oO oO 65,000 65,000 HALCON FIRE SYSTEM REPLACEMENT ° oO ° 15,000 15,000 MAN-LIFT, TRUCK & PLOW ATTACHMENT 0 oO 122,000 Of (122,000) TRANSFER TO (FROM) OPERATING RESERVE 0 25,002 48,000 5,000 (43,000) DEBT SERVICE (net of Capital Reserve Reductions) 12,276,325 12,273,950 12,269, 12,268,950 (900) ARBITRAGE TRANSFER 241,714 258,555 258,555, 275,000 16,445 0 o oO o oO 16,345,178 17,448,721 17,694,120 18,440,567 746.447 CURRENT YEAR SUI 0 0 1 BE. EN SER SNES. oh: BALANCE SHEET ASSETS REVENUE FUND 457,899 1,531,244 0 OPERATING FUND 821,997 RECEIVABLE FROM UTILITIES PREPAID EXPENSES LIABILITIES & SURPLUS LIABILITIES 670,840 643,508 0 PREPAID UTILITY CONTRIBUTION - : PAYABLE TO UTILITIES : 280,290 R&C REPAYMENT 412,419 1,447,372 OTHER INFORMATION OPERATING RESERVE * MONTHLY CONTRIBUTIONS * Required to be 20% of budgeted operating expense 1,083,259 2,371,170 661,402 734,400 1,204,069 1,365,799 3/10/20082:32 PMhttp://69.178.6.44/exchange/SHowell/Inbox/FW: Revised FY09 Budget Proposal.EML/2009BradleyBdgt-send.xis/C58EA28C-18C0-4a97-9AF2-036E93DDAFB3/2009BradleyBdgt-send.xisSchedule A-Budget Summary BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B AMENDED 31-Dec-07 FY2007 FY2007 FY2008 FY2008 FY2009 BUDGET ACTUAL VARIANCE BUDGET YTD ACTUAL BUDGET FERC 920 - Administrative Expense , (F) AEA Admin Fee 200,000 200,000 0 200,000 200,000 | 200,000 AEA Administrative Costs 200,000 200,000 0 200,000 200,000 200,000 PMC Costs (F) Bradley Lake Audit fees 8,500 8,298 202 8,500 8,601 9,500 (F) Bradley Lake PMC Legal 40,000 14,983 25,017 40,000 6,856 25,000 (F) Bradley Lake Arbitrage Report 6,000 4,475 1,525 6,000 4,475 5,000 (F) Bradley Lake Trustee fees 20,000 17,594 2,406 20,000 8,797 20,000 (F) PMC Costs 74,500 45,350 29,150 74,500 28,729 59,500 Bond Refunding Costs Reimburseable costs Refunding Costs 0 0 0 0 0 0 TOTAL FERC 920 274,500 245,350 29,150 274,500 228,729 259,500 FERC Insurance Premiums 533,357 532,759 598 578,500 550,885 578,000 (D) Homer Electric Insurance 57,000 55,011 1,989 54,981 24,566 49,270 (D) Risk Assessment 15,000 34,900 (19,900) 15,000 0 15,000 (D) [ 605,357 622,670 (17,313) 648,481 575,451 642,270 FERC FERC administrative fees 126,000 196,747 (70,747) 200,000 0 200,000 (E) FERC 5 Year Inspection 90,000 88,859 1,141 0 0 0 (E) 0 0 0 (E) Contractual Engineer - FERC license issues 115,000 40,849 74,151 140,000 19,592 155,000 L 331,000 326,455 4,545 340,000 19,592 355,000 3,280,343 2,928,813 351,530 3,670,786 1,793,017 3,697,149 TOTAL BRADLEY LAKE BUDGET 3/10/2008 2:32 PM http://69.178.6.44/exchange/SHowell/Inbox/FW: Revised FY09 Budget Proposal.EML/2009BradleyBdgt-send.xls/C58EA28C-18C0-4a97-9AF2- Page 4 of 4 036E93DDAFB3/2009BradleyBdgt-send.xlsSchedule B-Budget Detail BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B (C) Power Tunnel Darin, Clean, & Inspect (C) (C) (C) (C) FERC 544 - Maintenance of Electric Plant (A) HEA O&M Contract (C) Long Range Maintenance Study FERC 545 - Maintenance of Misc. Hydraulic Plant (A) HEA O&M Contract (C) FERC 556 - System Control & Load Dispatching (A) HEA O&M Contract (A) HEA O&M Contract-contingency (C) SCS Snow Measurement (C) UAA Seismic monitoring and reporting (C) USGS Streamguaging (C) State of Alaska Permits FERC 562 - Station Expenses (B) CEA SVC/Substation Maintenance Contract (C) FERC 571 - Maintenance of Overhead Lines (A) HEA Overhead Line Maintenance (H) Contingencies AMENDED 31-Dec-07 FY2007 FY2007 FY2008 FY2008 FY2009 BUDGET ACTUAL VARIANCE BUDGET YTD ACTUAL BUDGET 0 0 0 0 0 30,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 10,440 4,907 5,533 14,202 5,652 59,023 280,200 214,055 66,145 247,020 160,717 285,004 0 0 0 0 0 40,000 280,200 214,055 66,145 247,020 160,717 325,004 213,000 96,558 116,442 184,455 65,666 178,019 0 ) 0 0 0 0 213,000 96,558 116,442 184,455 65,666 178,019 20,080 23,442 (3,362) 21,896 30,215 49,195 0 0 0 0 0 9,000 6,222 2,778 10,000 7,629 9,000 56,500 54,691 1,809 60,000 11,279 56,500 183,281 183,281 0 200,000 48,667 207,040 0 200 (200) 0 100 0 268,861 267,836 1,025 291,896 97,890 321,735 130,000 85,118 44,882 103,356 26,082 70,500 0 0 0 0 0 0 130,000 85,118 44,882 103,356 26,082 70,500 70,000 65,580 4,420 302,734 3,950 349,435 70,000 65,580 4,420 302,734 3,950 349,435 0 ) 0 100,000 0 0 3/10/2008 2:32' PM http://69.178.6.44/exchange/SHowell/Inbox/FW: Revised FY09 Budget Proposal.EML/2009BradleyBdgt-send.xls/C58EA28C-18C0-4a97-9AF2- 036E93DDAFB3/2009BradleyBdgt-send.xlsSchedule B-Budget Detail Page 3 of 4 BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B AMENDED 31-Dec-07 FY2007 FY2007 FY2008 FY2008 FY2009 BUDGET ACTUAL VARIANCE BUDGET YTD ACTUAL BUDGET FERC 535 - Operation Supervision & Engineering (A) HEA O&M Contract 125,569 154,485 (28,916) 140,357 96,512 226,274 (C) HEA On-Site Civil Project Manager 0 0 0 (C) HEA Digitize & Control Project Drawings 0 0 0 125,569 154,485 (28,916) 140,357 96,512 226,274 = = FERC 537 - Hydraulic Expenses (A) HEA O&M Contract 49,200 71,711 (22,511) 54,037 57,252 71,159 49,200 1,711 (22,511) 54,037 57,252 71,159 FERC 538 - Electric Expenses (A) HEA O&M Contract 222,000 178,085 43,915 235,672 78,163 191,122 (C) SOA BOILIER INSPECTION 0 0 0 0 0 0 222,000 178,085 43,915 235,672 78,163 191,122 | FERC 539 - Misc. Hydraulic Power Generation Expenses (A) HEA O&M Contract 331,625 274,885 56,740 393,785 191,367 382,016 (C) Replace Two Way Radios 3,000 0 3,000 0 0 (C) HEA Circuits and Radio - To Bernice Lake 90,000 90,000 0 90,000 45,000 0 (C) CEA Circuits -Bernice Lake to Anchorage 28,740 28,746 (6) 28,740 14,373 0 453,365 393,631 59,734 512,525 250,740 382,016 FERC 540 - Rents (C) Bradley Lake FERC land use fees (5% increase bi 74,000 62,623 11,377 65,000 62,623 65,000 74,000 62,623 11,377 65,000 62,623 65,000 | FERC 541 - Maintenance Supervision & Engineering (A) HEA O&M Contract 82,451 43,476 38,975 63,204 46,670 125,283 82,451 43,476 38,975 | 63,204 46,670 125,283 FERC 542 - Maintenance of Structures (A) HEA O&M Contract 90,400 96,273 (5,873) 93,347 17,328 45,809 (C) Architect Review of Buildings 0 0 0 0 0 30,000 (C) 0 0 0 0 0 0 90,400 96,273 (5,873) 93,347 17,328 75,809 FERC 543 - Maintenance of Reservoirs, Dams & Waterways (A) HEA O&M Contract 10,440 4,907 5,533 14,202 5,652 | |3/10/2088.92% bm http://69.178.6.44/exchange/SHowell/Inbox/FW: Revised FY09 Budget Proposal.EML/2009BradleyBdgt-send.xls/CS58EA28C-18C0-4a97-9AF2- 036E93DDAFB3/2009BradleyBdgt-send.xlsSchedule B-Budget Detail Page 2 of 4 BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B AMENDED 31-Dec-07 FY2007 FY2007 FY2008 FY2008 FY2009 BUDGET ACTUAL VARIANCE BUDGET YTD ACTUAL BUDGET SUMMARY (A) HEA Annual Operations & Maintenance 1,494,965 * 1,223,457 271,508 1,750,709 753,492 1,932,339 (B) CEA Dispatch and Substation/SVC Maintenance 130,000 85,118 44,882 103,356 26,082 70,500 (C) Other O&M and Maintenance Projects 444,521 425,763 18,758 453,740 189,671 437,540 (D) Insurance Costs 605,357 622,670 (17,313) 648,481 575,451 642,270 (E) Regulatory Costs 331,000 326,455 4,545 340,000 19,592 355,000 (H) Contingencies 0 0 0 100,000 0 0 3,005,843 2,683,463 322,380 3,396,286 1,564,288 3,437,649 (F) Administrative Costs 274,500 245,350 29,150 274,500 228,729 259,500 3,280,343 2,928,813 351,530 3,670,786 1,793,017 3,697,149 (G) BUDGET ADJUST ESTIMATE 0 0 0 0 0 0 3,280,343 2,928,813 351,530 3,670,786 1,793,017 3,697,149 3/10/2008 2:32 PM http://69.178.6.44/exchange/SHowell/Inbox/FW: Revised FY09 Budget Proposal.EML/2009BradleyBdgt-send.xls/C58EA28C-18C0-4a97-9AF2- Page 1 of 4 036E93DDAFB3/2009BradleyBdgt-send.xisSchedule B-Budget Detail BRADLEY LAKE MONTHLY UTILITY CONTRIBUTION SCHEDULE C ACTUAL BUDGET PERCENT FY2007 FY2008 FY2009 FY2009 POWER PURCHASER SHARE TOTAL TOTAL TOTAL INCREASE CHUGACH ELECTRIC 30.4% 4,817,736 4,982,436 5,131,992 149,556 MUNICIPALITY OF ANCHORAGE 25.9% 4,104,588 4,244,904 4,372,320 127,416 AEG&T-HEA 12.0% 1,901,736 1,966,752 2,025,780 59,028 AEG&T-MEA 13.8% 2,187,000 2,261,760 2,329,656 67,896 GOLDEN VALLEY ELECTRIC 16.9% 2,678,280 2,769,840 2,852,976 83,136 CITY OF SEWARD 1.0% 158,484 163,896 168,816 4,920 Rounding 15 2 2 100.0% 15,847,809 16,389,590 16,881,542 491,952 BUDGET FY2007 FY2008 PERCENT MONTHLY MONTHLY FY2009 FY2009 POWER PURCHASER SHARE AVERAGE AVERAGE MONTHLY INCREASE CHUGACH ELECTRIC 30.4% 401,478 415,203 427,666 12,463 MUNICIPALITY OF ANCHORAGE 25.9% 342,049 353,742 364,360 10,618 AEG&T-HEA 12.0% 158,478 163,896 168,815 4,919 AEG&T-MEA 13.8% 182,250 188,480 194,138 5,658 GOLDEN VALLEY ELECTRIC 16.9% 223,190 230,820 237,748 6,928 CITY OF SEWARD 1.0% 13,207 13,658 14,068 410 100.0% 1,320,652 1,365,799 1,406,795 40,996 3/10/20082:32 PM http://69.178.6.44/exchange/SHowell/Inbox/FW: Revised FY09 Budget Proposal. EML/2009BradleyBdgt-send.xls/C58EA28C-18C0-4a97-9AF2- 036E93DDAFB3/2009BradleyBdgt-send.xlsSchedule C Utility Contrib BRADLEY LAKE R&C FUND DISBURSEMENTS AND REPAYMENTS SCHEDULE D Description R&C FUND PROJECTS (Governor Replace RFLS Replace Runners Replace cable from dam to power house Replace power system stabilizer Replace two RTUs Culver Repairs Current Year R&C Repayment Adjust for Current Year Budget Less Interest in Fund Applied to Repayment Net Transfer from Revenue Fund ‘Cumulative Prior Years R&C Repayments Actual TO REPAY at 06/30/06 1,012,132.97 0.00 598,761.00 38,783.54 0.00 0.00 0.00 0.00 Actual Disburse 1,556,895.86 22,957.82 865,865.17 1,688,944.42 0.00 5,146.54 Actual TO REPAY at 06/30/07 2,569,028.83 22,957.82 1,464,626.17 1,727,727.96 0.00 5,146.54 0.00 0.00 PROJECTED Disburse 46,563.90 228,134.87 482,034.83 660,955.04 80,694.46 PROJECTED TO REPAY at 06/30/08 2,615,592.73 251,092.69 1,946,661.00 2,388,683.00 0.00 85,841.00 0.00 0.00 PROJECTED Disburse 0.00 0.00 0.00 0.00 200,000.00 50,000.00 800,000.00 0.00 PROJECTED TO REPAY at 06/30/09 2,615,592.73 251,092.69 1,946,661.00 2,388,683.00 200,000.00 135,841.00 800,000.00 0.00 1,649,677.51 Cumulative Retained Interest R&C Fund Interest NET DUE TO R&C FUND R&C FUND CASH FLOW PROJECTION Beginning Investment Balance Disbursements-current year Disbursements-prior year accrued Utilities’ R&C Repayment Current year interest earnings Accrued R&C Payable at year end Ending Investment Balance PROJECTED NET DUE + ENDING INVESTMENT BALANCE REPAYMENT AMOUNT $1,649,677 X 25% $4,139,810 X 25% $1,498,383 X 25% '$1,160000 X 25% 4,139,809.81 5,789,487.32 (1,447,371.70) 0.00 0.00 (1,447 ,371.70) (412,419.38) (663,969.87) (1,076,389.25) 3,265,726.37 4,215,566.49 (4,139,809.81) (56,861.04) 412,419.38 327,184.52 975,774.09 1,734,273.63 5,000,000.00 412,419.25 1,034,952.45 1,447,371.70 1,498,383.10 7,287,870.42 (1,821,967.61) (85,042.02) 663,626.87 (1,243,382.76 (1,859, 791.08) 0.00 (1,859,791.08) 4,184,696.58 1,734,273.63 (1,498,383.10) (975,774.09) 1,447,371.70 107,815.28 0.00 815,303.42 5,000,000.00 412,419.38 1,034,952.45 374,595.78 1,821,967.61 1,050,000.00 8,337,870.42 (2,084,467.61) 0.00 110,000.00 (1,974,467.61) (3,103,173.84) 621,084.85 (2,482,088.99) 3,881,313.82 815,303.42 (1,050,000.00) 0.00 1,243,382.76 110,000.00 0.00 1,118,686.18 §,000,000.00 412,419.38 1,034,952.45 374,595.78 262,500.00 2,084,467.61 3/10/20082:33 PM http://69.178.6.44/exchange/SHowell/Inbox/FW: Revised FY09 Budget Proposal.—EML/2009BradleyBdgt-send.xls/C58EA28C-18C0-4a97-9AF2-036E93DDAFB3/2009BradleyBdgt- send.xlsSchedule D R&C Disb & Repay BRADLEY LAKE BUDGET PROJECTED CASH FLOW BY FUND SCHEDULE G Rev Fund O&M Fund Debt Fund Op Reserve R&C Cap Reserve Total FY2008 Budget Revenues 16,389,592 - 16,389,592 Interest 1,199,527 - - 107,815 1,307,342 Transfers to O&M (3,670,786) 3,670,786 - = Transfers to Debt Service (12,269,850) 12,269,850 = Payback of R&C Fund (1,447,372.00) - 1,447,372 - Other Prior Year Payables (413,871) (413,871) O&M Requisitions (4,492,783) (4,492,783) Due To R&C at Year End - - - Capital Requistions (203,546) 203,546 - (2,474,157) (2,474,157 Renewals/Replacements (203,546) - - (203,54 To Excess Earnings fund (258,555) (258,555) Debt Payments (12,269,850) (12,269,850) Increase Op Reserve (48,000) 48,000 z 6/30/2008 Projected Balance 808,383 0 - 734,400 815,304 12,834,000 15,192,087 A FY2009 Budget - Revenues 16,881,542 - 16,881,542 Interest 1,449,024 110,000 1,559,024 Transfer back interest - = Transfers to O&M (3,697,149) 3,697,149 - = Transfers to Debt Service (12,268,950) 12,268,950 = Payback of R&C Fund (1,243,383) 1,243,383 = 2008 O&M Redauisitions (3,697,149) (3,697,149) 2008 Capital Requistions (220,000) 220,000 - 2 Renewals/Replacements (220,000) - (1,050,000) - (1,270,000) To Excess Earnings fund (275,000) (275,000) Payment of Prior Year Deficit - = Debt Payments (12,268,950) (12,268,9§ Increase Op Reserve (5,000) 5,000 = 6/30/2009 Projected Balance 1,429,467 0 - 739,400 1,118,686 12,834,000 16,121,554 Assumption: should be 20.00% For purpose of budget cash flows, July 01 debt service projected 20.00% is assumed to be disbursed on June 30 3/10/20082:33 PM http://69.178.6.44/exchange/SHowell/Inbox/FW: Revised FY09 Budget Proposal.EML/2009BradleyBdgt-send.xls/C58EA28C-18C0-4a97-9AF2- 036E93DDAFB3/2009BradleyBdgt-send.xlsSchedule G-Cash balances BRADLEY LAKE BUDGET PROJECTED INTEREST INCOME SCHEDULE | Beginning Balance Receipts Utility Contributions Interest Income Received Equipment Sale Repay Prior Year Deficit Disbursements Prior year accrued expenses © & M Expenses R&C Fund Disbursement-Sch D Debt Service Payment SCH A Capital Excess Earnings Transfer Other Adjustment-Equal Sch G Adjust to Actual Ending Balance Interest Income Projection TOTAL Jul-oi Aug-08 Sep-08 Oct. Nov-08 Dec-0' 1-09 Feb-0: Mi Apr-09 May-09 75,192,087.02 15,192,087.02 17,123,882.19 17,616,247.55 18,523,185.27 19,500,122.99 20,522,060.70 21,643,998.42 20,638,134. 21,675,215.26 22,877,182.98 _23,494,518.34 16,881,542.00 1,406,795.17 1,406,795.17 1,406,795.17 _1,406,795.17 1,406,795.17 1,406,795.17 1,406,795.17 1,406,795.17 1,406,795.17 1,406,795.17 1,406,795.17 _1,406,795.17 ADJ INTEREST 1,859,023.75 800,000.00 0.00 0.00 0.00 0.00 0.00 706,816.41 0.00 0.00 0.00 0.00 0,00 {iNS2/207!84)) To ACCRUAL BASIS 0.00 0.00 0.00 0.00 0.00 78,440,565.75 _2,206,795.17 _1,406,795.17 _1,406,705.17 1,406,705.17 1,406,795.17 1,406,705.17 _—-2,113,611.57 _—*1,406,795.17___1,406,795.17___1,406,795.17__1,406,795.17_1,406,795.17 2,207.34 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (3,697, 149.00) 0.00 (739,429.80) (184,857.45) (184,857.45) (184,857.45) (184,857.45) 0.00 (369,714.90) (184,857.45) (739,429.80) (184,857.45) (739,429.80) (1,050,000.00) 0.00 (110,000.00) (220,000.00) (220,000.00) (200,000.00) (100,000.00) 0.00 0.00 (20,000.00) (50,000.00) (50,000.00) (80,000.00) (12,268,950.00) 0.00 0.00 0.00 0.00 0.00 0.00 (3,119,475.00) 0.00 0.00 0.00 0.00 0.00 (9,149,475.00) ASSUME DEBT (220,000.00) 0.00 (65,000.00) (95,000.00) (25,000.00) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (35,000.00) 0.00 (275,000.00) (275,000.00) 0.00 0.00 0.00 0.00 (17,511,099.00) (275,000.00) (914,429.80) (499,857.45) (420,867.45) (984,857.45) (284,857.45) _(3,119,475.00) (969,714.90) (204,857.45) (789,429.80) __(234,857.45)_ (854,429.80) _(9,149,475.00) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 16,121,553.77__17,123,882.19__17,616,247.55__18,523,185.27 122.99 _ 20,522,060.70 _21,643,998.42 _20,638,134.99 _21,675,215.26 _22,877,152.98 _23,494,518.34 _24,666,456.06 _25,218,821.43 _16,121,553.77 Estimated Accrued Interest 1,559,023.75 105,311.88 108,339.92 113,917.59 119,925.76 126,210.67 133,110.59 126,924.53 133,302.57 140,694.49 144,491.29 151,698.70 155,095.75 Adjust to Actual Received 7,559,023.75 705,311.68 708,339.92 173,917.59 719,925.76 126,210.67 733,110.59 126,924.53 133,302.57 140,604.49 144,491.29 157,698.70 155,095.75 0.00 — es = soe iene aera === sess Payment of Accrued interest 706,816.41 CHK TP SCH G 0.00 3/10/20082:33 PM http://69.178.6.44/exchange/SHowell/Inbox/FW: Revised FY09 Budget Proposal.EML/2009BradleyBdgt-send.xis/C58EA28C-1 8C0-4a97-9AF2-036E93DDAFB3/2009BradleyBdgt-send.xIsSchedule |-Interest Inc R&C PROJECTS DISBURSEMENTS Governor Project FY05-PD FROM R&C IN06 —.256,783.06 R&C Fund Construction FD Total FY02 263.17 0.00 263.17 FY03 103,213.18 0.00 103,213.18 FY04 135,710.34 0.00 135,710.34 1,238,667.17 1,495,450.23 FYO6 = 1,144,301.48 577,446.49 = 1,721,747.97 FYO7 1,556,895.86 0.00 1,556,895.86 0.00 46,563.90 FY08 as of 01/31/08 46,563.90 COMPLETED Needle Repairs FY02 14,645.52 FY03 909,158.20 FY04 560,510.51 COMPLETED _1,484,314.23 Runner Repairs FY02 14,256.00 FY03 27,631.63 FY04 78.76 FY05 0.00 FY06 598,760.80 FY07 865,865.17 FY08 as of 01/31/08 ___ 324,748.00 1,831,340.36 ESTIMATED ADDT'LFY08 — 157,208.00 COMPLETED BY FY09 0.00 PROJECTED ADDITIONAL 157,208.00 1 PROJECTED TOTAL _ 1,988,548.36 SCADA FY02 115,049.07 FY03 173,697.03 FY04 305.35 COMPLETED __ 289,051.45 Cable Repair FY06 38,783.54 FY07 1,688,944.42 FY08 as of 01/31/08 __ 610,631.76 2,338,359.72 ESTIMATED ADDT'L FY08 50,323.00 ESTIMATED ADDT'L FY09 0.00 PROJECTED ADDITIONAL 50,323.00 PROJECTED TOTAL RTU Replacements 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 14,645.52 909,158.20 560,510.51 484,314.23 14,256.00 27,631.63 78.76 0.00 598,760.80 865,865.17 324,748.00 1,831,340.36 157,208.00 0.00 157,208.00 1,988,548.36 115,049.07 173,697.03 305.35 289,051.45 38,783.54 1,688,944.42 610,631.76 2,338,359.72 50,323.00 0.00 50,323.00 FY07 5,146.54 0.00 5,146.54 FY08 as of 01/31/08 15,694.16 0.00 15,694.16 5,146.54 0.00 5,146.54 ESTIMATED ADDT'L FY08 64,999.84 0.00 64,999.84 ESTIMATED ADDT'L FY09 50,000.00 0.00 50,000.00 PROJECTED ADDITIONAL 114,999.84 0.00 114,999.84 PROJECTED TOTAL __ 120,146.38 0.00 120,146.38 RFL RELAYS FY07 22,957.82 0.00 22,957.82 FY08 as of 01/31/08 228,134.87 0.00 228,134.87 251,092.69 0.00 251,092.69 ESTIMATED ADDT'L FY08 0.00 0.00 0.00 ESTIMATED ADDT'L FY09 0.00 0.00 0.00 PROJECTED ADDITIONAL 0.00 0.00 0.00 PROJECTED TOTAL __ 251,092.69 0.00 251,092.69 157,208.00 50,323.00 64,999.84 272,530.84 Bradley Lake Staffing Changes and Increased labor Costs The Bradley Lake O&M labor cost estimate has increased approximately 9% from FY08 to FY09. Part of this is due to a 3% inflationary increase. The rest is from HEA’s attempts to address and correct noted staffing deficiencies. When the plant was originally built the FERC license indicated the plant would utilize three operators and one superintendent to man the plant. For various reasons the staffing changed from this arrangement a number of years ago to four operators and no on-site Superintendent. One reason for this change was that three operators were insufficient to provide coverage as any unanticipated absence due to illness, injury or emergency leave would leave the site undermanned or require excessive overtime on the part of the remaining operators. Three operators also meant that there were times when a plant operator would spend multiple days at the plant working alone. Due to safety considerations it is not desirable to have an operator at the Plant alone. To that end HEA began a program that utilized 4 operators in rotation. At this time the superintendent was no longer living at the site which resulted in additional deficiencies which included a lack of project management/coordination. It became clear over time that the plant was suffering due to lack of sufficient on-site management oversight and it was determined that the superintendent needed to have a presence at the plant more than a day or so per week. To correct this issue HEA rearranged staffing to include a full time on-site Bradley Lake plant superintendent. HEA also changed the staffing to include three operators assigned to the Bradley Lake site and supplement them with “roving Operators” normally stationed at the Nikiski site. HEA has three rovers. Their duties include O&M of Nikiski, Seldovia, and Bradley Lake on a rotating basis. By doing so we are allowed to keep at least three operators in reserve that can be called upon to serve at Bradley when there is an absence that is not anticipated. It also allows HEA to maintain a cadre of trained operators that are ready to operate at Bradley in case of a long term illness, injury or retirement of any of the existing operators. The rovers account for one full time equivalent position at Bradley so we are manning the plant with 4 FTE operators and a superintendent. This allows for good management oversight, succession planning and training. The FY09 Bradley budget includes the following management: Director of Power Production and Transmission — 15% of FTE Manager of Power Production — 30% of FTE Plant Superintendent — 100% of FTE ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT REVENUES, EXPENSES & CHANGES IN SURPLUS REVENUES UTILITY CONTRIBUTIONS INTEREST INCOME SALE OF SURPLUS EXPENSES OPERATIONS RENEWAL/REPLACE (R&C REPAYMENTS) R&C INTEREST APPLIED AS REPMT PURCHASE OF VEHICLE CULVERT REPAIRS HELICOPTER PAD REPAIRS PURCHASE MAN-LIFT, TRUCK&PLOW TRANSFER TO OPERATING RESERVE DEBT SERVICE (net of Capital Reserve Reduction) TRANSFER TO ARBITRAGE PRIOR YEAR SURPLUS (SHORTFALL) CURRENT YEAR SURPLUS(DEFICIT) PRIOR YEAR SURPLUS (DEFICIT) BEGINNING SURPLUS (DEFICIT) COMMITTED CY EXP & DEBT SVC ENDING SURPLUS (DEFICIT) BALANCE SHEET ASSETS REVENUE FUND OPERATING FUND : DUE TO REV FUND (Ops Rsv interest in transit) PREPAID SCADA MAINT & D&O Insurance LIABILITIES & SURPLUS CURRENT LIABILITIES COMMITTED CY EXP & DEBT SVC. PAYABLE - FY07 R&C REPAYMENT PAYABLE - FY07 SURPLUS OTHER INFORMATION OPERATING RESERVE MONTHLY CONTRIBUTIONS FY 2007 FY2008 FY 2008 ACTUALS APPROVED ACTUALS FINAL BUDGET AS OF 12/31/07 15,847,816 16,389,592 8,194,794 1,875,537 1,304,527 968,565 5,656 = ; 17,729,009 17,694,119 9,163,359 2,928,813 3,670,786 1,793,018 1,447,372 1,243,383 - 327,185 70,243 22,300 81,546 . 165,543 . 122,000 73,900 25,002 48,000 48,000 12,273,950 12,269,850 6,134,925 258,555 258,555 274,959 17,448,719 17,694,120 8,395,045 280,290 (1) 768,315 0 (768,315) 280,290 ) 4,531,244 . 883,125 821,997 573,016 13 17,929 2,932 2,371,170 : 1,459,087 643,509 - 410,482 : - 768,315 1,447,372 : i 280,290 3 280,290 2,371,170 : 1,459,087 (0) 686,402 1,320,652 734,400 1,365,799 (0) Note (a) The annual R&C repayment is processed at year end after all current year R&C expenditures have been processed. Total R&C Fund receivable at 12/31/07: $3,820,353 (a) 2008 Sum and Cash Bal 12-31-07.xls - B-SUM BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B SUMMARY (A) (B) (Cc) (D) (E) (H) (F) (s) HEA Annual Operations & Maintenance CEA Dispatch and Substation/SVC Maintenance Other O&M and Maintenance Projects Insurance Costs Regulatory Costs Contingencies Administrative Costs Bond Refunding Costs Page 1 of 4 APPROVED AMENDED FY2008 BUDGET 1,750,709 103,356 453,740 648,481 340,000 100,000 BUDGET YTD 12/31/07 875,354.50 51,678.00 259,370.00 613,490.40 170,000.00 50,000.00 ACTUALS OVER YTD (UNDER) 12/31107 BUDGET (b) 753,494.49 (121,860.01) 26,080.81 (25,597.19) 189,670.99 (69,699.01) 575,450.62 (38,039.78) 19,591.83 (150,408.17) (50,000.00) 3,396,286 274,500 3,670,786 3,670,786 2,019,892.90 244,500.00 2,264,392.90 2,264,392.90 1,564,288.74 (455,604.16) 228,728.89 (15,771.11) 1,793,017.63 (471,375.27) 1,793,017.63 (471,375.27) FYO8BdgtStatusRpt.xls APPROVED AMENDED BUDGET ACTUALS OVER FY2008 YTD YTD (UNDER) BUDGET 12/31/07 12/31/07 BUDGET (b) FERC 535 - Operation Supervision & Engineering (A) HEA O&M Contract 140,357 70,178.50 96,512.01 26,333.51 140,357 70,178.50 96,512.01 26,333.51 | FERC 537 - Hydraulic Expenses (A) HEA O&M Contract 54,037 27,018.50 57,251.66 30,233.16 54,037 27,018.50 57,251.66 30,233.16 FERC 538 - Electric Expenses (A) HEA O&M Contract 235,672 117,836.00 78,163.03 (39,672.97) 235,672 117,836.00 78,163.03 (39,672.97) FERC 539 - Misc. Hydraulic Power Generation Exp (A) HEA O&M Contract 393,785 196,892.50 191,366.63 (5,525.87) (C) HEA Circuits and Radio - To Bernice Lake 90,000 45,000.00 |: 45,000.00 - (C) CEA Circuits -Bernice Lake to Anchorage 28,740 | 14,370.00 14,373.00 3.00 512,525 256,262.50 250,739.63 (5,522.87) FERC 540 - Rents (C) Bradley Lake FERC land use fees (5% increase bud 65,000 65,000.00 62,623.40 (2,376.60)|thru 9/08 65,000 | 65,000.00] _—*62,623.40| _—_—(2,376.60) FERC 541 - Maint Supervision & Engineering (A) HEA O&M Contract 63,204 31,602.00 46,670.40 15,068.40 Lie 63,204 | 31,602.00 46,670.40 15,068.40 FERC 542 - Maintenance of Structures (A) HEA O&M Contract 93,347 46,673.50 17,327.91 (29,345.59) i 93,347 46,673.50 327.91 | __ (29,345.59) FERC 543 - Maint of Reservoirs, Dams & Waterways (A) HEA O&M Contract 14,202 7,101.00 5,652.34 (1,448.66) 14,202 7,101.00 5,652.34 (1,448.66) FERC 544 - Maintenance of Electric Plant (A) HEA O&M Contract 247,020 123,510.00 160,717.21 37,207.21 247,020 123,510.00 160,717.21 37,207.21 Page 2 of 4 FYO8BdgtStatusRpt.xis FERC 545 - Maintenance of Misc. Hydraulic Plant (A) HEA O&M Contract FERC 556 - System Control & Load Dispatching (A) HEA O&M Contract (C) SCS Snow Measurement (C) UAA Seismic monitoring and reporting (C) USGS Streamguaging (C) State of Alaska Permits FERC 562 - Station Expenses (B) CEA SVC/Substation Maintenance Contract FERC 571 - Maintenance of Overhead Lines (A) HEA Overhead Line Maintenance (H) Contingencies FERC 920 - Administrative Expense (F) AEA Admin Fee AEA Administrative Costs PMC Costs (F) Bradley Lake Audit fees (F) Bradley Lake PMC Legal (F) Bradley Lake Arbitrage Report (F) Bradley Lake Trustee fees PMC Costs TOTAL FERC 920 Page 3 of 4 APPROVED AMENDED BUDGET ACTUALS OVER FY2008 YTD YTD (UNDER) BUDGET 12131107 12131107 BUDGET (b) [a 184,455 | 92,227.50 65,667.95 184,455 92,227.50 65,667.95 21,896 10,948.00 30,215.20 19,267.20 10,000 5,000.00 7,629.42 2,629.42 80,000 30,000.00 11,278.50 (18,721.50) 200,000 100,000.00 48,666.67 (51,333.33) - - 100.00 100.00 297,896 145,948.00 97,889.79 (48,058.21 103,356 | 51,678.00 26,080.81 (25,597.19)|thru 10/07 103,356 51,678.00 26,080.81 (25,597.19) 302,734 151,367.00 3,950.15 | ___(147,416.85) 302,734 151,367.00 3,950.15| (147,416.85) 100,000 50,000.00 - (60,000.00) 200,000 200,000.00 200,000.00 -_|thru 6/08 200,000 200,000.00 200,000.00 - 8,500 8,500.00 8,601.00 101.00 |thru 6/08 40,000 20,000.00 6,855.64 (13,144.36) 6,000 6,000.00 4,475.00 (1,525.00)|thru 6/08 20,000 10,000.00 8,797.25 (1,202.75) 74,500 44,500.00 28,728.89 (15,771.11) 274,500 244,500.00 228,728.89 (15,771.11 FYO8BdgtStatusRpt.xis APPROVED AMENDED BUDGET ACTUALS OVER FY2008 YTD YTD (UNDER) BUDGET 12131107 412131107 BUDGET (b) FERC 924 - Property Insurance (D) Insurance Premiums - 578,500 578,499.90 550,885.00 (27,614.90)|thru 6/08 (D) Homer Electric Insurance 54,981 27,490.50 24,565.62 (2,924.88) (D) Risk Assessment 15,000 7,500.00 (7,500.00) 613,490.40 575,450.62 (38,039.78) FERC 928 - Regulatory Commission Expenses (E) FERC administrative fees (E) Contractual Engineer - FERC license issues 200,000 100,000.00 140,000 70,000.00 340,000 170,000.00 (100,000.00) (50,408.17) (150,408.17) 19,591.83 19,591.83 2,264,392.90 1,793,017.63 (471,375.27) TOTAL BRADLEY LAKE BUDGET 3,670,786 Page 4 of 4 FY08BdgtStatusRpt.xls OVERVIEW OF BUDGET CHANGES BETWEEN FY08 AND FY09 FY08 Utility Contributions DECREASES Increase in projected interest earnings Operating budget decrease due to removal of budget for contingencies because have not used Decrease in operating reserve transfer Decrease in debt service TOTAL DECREASES INCREASES R&C transfer due to: Increased repayment due on prior year costs Decrease in fund interest earnings to apply as repayment Increase in operating for architect review of buildings and long range maintenance study Increase in operating for tunnel drain, clean and inspect Increase in operating for FERC regulatory costs Increase in capital costs on Schedule A Increase in projected arbitrage transfer TOTAL INCREASES FY09 Utility Contributions 16,389,592 254,497 100,000 43,000 900 398,397 262,500 468,585 731,085 70,000 30,000 26,363 16,454 16,445 890,347 16,881,542 _ BRADLEY LAKE HYDROELECTRIC PROJECT Schedule A FYO06 FY07 FY2008 INC(DEC) ACTUALS ACTUALS BUDGET BUDGET FROM PY REVENUES, EXPENSES & CHANGES IN SURPLUS REVENUES UTILITY CONTRIBUTIONS 14,448,825 15,567,526 16,389,592 491,950 INTEREST INCOME 1,896,353 1,875,539 1,304,527 1,559,024 254,497 OTHER MISC INCOME 0 5,656 oO oO 0 oO oO 0 oO o 16,345,178 17,448,721 17,694,119 18,440,566 746,447 EXPENSES OPERATIONS 3,212,203 2,928,813 3,670,786 3,697,149 26,363 RENEWALS/REPLACEMENTS (R&C FUND REPAYMENTS) 614,936 1,774,558 1,243,383 1,974,468 731,085 CULVERT REPAIRS oO 22,300 81,546 O (81,546) HELICOPTER PAD REPAIRS oO 165,543 O O oO AMBULANCE TRUCK, MOWER ATTACH, MILLING MACHINE oO O oO 110,000 110,000 FIRE WATER CONTROL VALVE REPLACEMENT oO O O 30,000 30,000 CATHODIC PROTECTION REPLACEMENT 0 0 0 65,000 65,000 HALCON FIRE SYSTEM REPLACEMENT oO O oO 15,000 15,000 MAN-LIFT, TRUCK & PLOW ATTACHMENT 0 oO 122,000 oO (122,000) TRANSFER TO (FROM) OPERATING RESERVE 0 25,002 48,000 5,000 (43,000) DEBT SERVICE (net of Capital Reserve Reductions) 12,276,325 12,273,950 12,269, 12,268,950 (900) ARBITRAGE TRANSFER 241,714 258,555 258,555 275,000 16,445 oO o oO 0 oO 16,345,178 17,448,721 17,694,120 18,440,567 746,447. CURRENT YEAR sul 0 0 7 BE: oO oO oO BALANCE SHEET ASSETS REVENUE FUND 457,899 1,531,244 oO OPERATING FUND 534,187 821,997 (1) RECEIVABLE FROM UTILITIES 70,648 - PREPAID EXPENSES 20,525 17,929 LIABILITIES & SURPLUS LIABILITIES 670,840 643,508 oO PREPAID UTILITY CONTRIBUTION - - PAYABLE TO UTILITIES - 280,290 R&C REPAYMENT 412,419 1,447,372 1,083,259 371,170 OTHER INFORMATION OPERATING RESERVE * 661,402 686,400 734,400 MONTHLY CONTRIBUTIONS 1,204,069 1,320,652 1,365,799 * Required to be 20% of budgeted operating expense 3/10/20082:32 PMhttp://69.178.6.44/exchange/SHowell/inbox/FW: Revised FY09 Budget Proposal. EML/2009BradleyBdgt-send.xis/C58EA28C-18C0-4a97 -9AF2-036ES3DDAFB3/2009BradleyBdgt-send.xisSchedule A-Budget Summary BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B AMENDED 31-Dec-07 FY2007 FY2007 FY2008 FY2008 FY2009 BUDGET ACTUAL VARIANCE BUDGET YTD ACTUAL BUDGET FERC 920 - Administrative Expense (F) AEA Admin Fee 200,000 200,000 0 200,000 200,000 200,000 AEA Administrative Costs 200,000 200,000 0 200,000 200,000 200,000 PMC Costs (F) Bradley Lake Audit fees 8,500 8,298 202 8,500 8,601 9,500 (F) Bradley Lake PMC Legal 40,000 14,983 25,017 40,000 6,856 25,000 (F) Bradley Lake Arbitrage Report 6,000 4,475 1,525 6,000 4,475 5,000 (F) Bradley Lake Trustee fees 20,000 17,594 2,406 20,000 8,797 20,000 (F) PMC Costs 74,500 45,350 29,150 74,500 28,729 59,500 Bond Refunding Costs Reimburseable costs Refunding Costs 0 0 0 0 0 0 TOTAL FERC 920 274,500 245,350 29,150 274,500 228,729 259,500 FERC Insurance Premiums 533,357 532,759 598 578,500 550,885 578,000 (D) Homer Electric Insurance 57,000 55,011 1,989 54,981 24,566 49,270 (D) Risk Assessment 15,000 34,900 (19,900) 15,000 0 15,000 (D) 605,357 622,670 (17,313)} 648,481 575,451 642,270 - =i - —==== FERC FERC administrative fees 126,000 196,747 (70,747) 200,000 0 200,000 (E) FERC 5 Year Inspection 90,000 88,859 1,141 0 0 0 (E) 0 0 0 (E) Contractual Engineer - FERC license issues 115,000 40,849 74,151 140,000 19,592 155,000 331,000 326,455 4,545 340,000 19,592 355,000 3,280,343 2,928,813 351,530 3,670,786 1,793,017 3,697,149 TOTAL BRADLEY LAKE BUDGET 3/10/2008 2:32 PM http://69.178.6.44/exchange/SHowell/Inbox/FW: Revised FY09 Budget Proposal.EML/2009BradleyBdgt-send.xls/C58EA28C-18C0-4a97-9AF2- Page 4 of 4 036E93DDAFB3/2009BradleyBdgt-send.xlsSchedule B-Budget Detail BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B (C) Power Tunnel Darin, Clean, & Inspect (C) (C) (Cc) (Cc) FERC 544 - Maintenance of Electric Plant (A) HEA O&M Contract (C) Long Range Maintenance Study FERC 545 - Maintenance of Misc. Hydraulic Plant (A) HEA O&M Contract (Cc) FERC 556 - System Control & Load Dispatching (A) HEA O&M Contract (A) HEA O&M Contract-contingency (C) SCS Snow Measurement (C) UAA Seismic monitoring and reporting (C) USGS Streamguaging (C) State of Alaska Permits FERC 562 - Station Expenses (B) CEA SVC/Substation Maintenance Contract (Cc) FERC 571 - Maintenance of Overhead Lines (A) HEA Overhead Line Maintenance (H) Contingencies AMENDED 31-Dec-07 FY2007 FY2007 FY2008 FY2008 FY2009 BUDGET ACTUAL VARIANCE BUDGET YTD ACTUAL BUDGET 0 0 0 0 0 30,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 10,440 4,907 5,533 14,202 5,652 59,023 | _— 280,200 214,055 66,145 247,020 160,717 285,004 0 0 0 0 0 40,000 280,200 214,055 66,145 | 247,020 160,717 325,004 | 213,000 96,558 116,442 184,455 65,666 178,019 0 0 0 0 0 0 L 213,000 96,558 116,442 184,455 65,666 178,019 20,080 23,442 (3,362) 21,896 30,215 49,195 0 0 0 0 0 9,000 6,222 2,778 10,000 7,629 9,000 56,500 54,691 1,809 60,000 11,279 56,500 183,281 183,281 0 200,000 48,667 207,040 0 200 (200) 0 100 0 268,861 267,836 1,025 291,896 97,890 321,735 130,000 85,118 44,882 103,356 26,082 70,500 0 0 0 0 0 0 130,000 85,118 44,882 103,356 26,082 70,500 pete a 70,000 65,580 4,420 302,734 3,950 349,435 70,000 65,580 4,420 L 302,734 3,950 JL 349,435 0 0 0 100,000 0 0 3/10/2008 2:32 bu http://69.178.6.44/exchange/SHowell/Inbox/FW: Revised FY09 Budget Proposal.EML/2009BradleyBdgt-send.xls/C58EA28C-18C0-4a97-9AF2- 036E93DDAFB3/2009BradleyBdgt-send.xisSchedule B-Budget Detail Page 3 of 4 BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B FERC 535 - Operation Supervision & Engineering (A) HEA O&M Contract (C) HEA On-Site Civil Project Manager (C) HEA Digitize & Control Project Drawings FERC 537 - Hydraulic Expenses (A) HEA O&M Contract FERC 538 - Electric Expenses (A) HEA O&M Contract (C) SOA BOILIER INSPECTION (A) HEA O&M Contract (C) Replace Two Way Radios (C) HEA Circuits and Radio - To Bernice Lake (C) CEA Circuits -Bernice Lake to Anchorage FERC 540 - Rents (C) Bradley Lake FERC land use fees (5% increase b FERC 541 - Maintenance Supervision & Engineering (A) HEA O&M Contract FERC 542 - Maintenance of Structures (A) HEA O&M Contract (C) Architect Review of Buildings (c) (A) HEA O&M Contract FERC 539 - Misc. Hydraulic Power Generation Expenses FERC 543 - Maintenance of Reservoirs, Dams & Waterways AMENDED 31-Dec-07 FY2007 FY2007 FY2008 FY2008 FY2009 BUDGET ACTUAL VARIANCE BUDGET YTD ACTUAL BUDGET 125,569 154,485 (28,916) 140,357 96,512 226,274 0 0 0 0 0 0 125,569 154,485 (28,916) 140,357 96,512 | 226,274 49,200 71,741 (22,511) 54,037 57,252 71,159 | 49,200 71,741 (22,511) 54,037 57,252 71,159 222,000 178,085 43,915 235,672 78,163 191,122 0 0 0 0 0 0 222,000 178,085 43,915 235,672 76,163 | [___ 191,122 | 331,625 274,885 56,740 393,785 191,367 382,016 3,000 0 3,000 0 0 90,000 90,000 0 90,000 45,000 0 28,740 28,746 (6) 28,740 14,373 0 453,365 393,631 Ts) [512,525 250,740 382,016 74,000 62,623 11,377 65,000 62,623 65,000 74,000 62,623 11,377 65,000 62,623 65,000 82,451 43,476 38,975 63,204 46,670 125,283 82,451 43,476 38,975 63,204 46,670 125,283 = = aa 90,400 96,273 (5,873) 93,347 17,328 45,809 0 0 0 0 0 30,000 0 0 0 0 0 0 90,400 96,273 6,873) 93,347 17,328 75,809 10,440 4,907 5,533 14,202 5,652 | |3/10/2088.92 Pm http://69.178.6.44/exchange/SHowell/Inbox/FW: Revised FY09 Budget Proposal.EML/2009BradleyBdgt-send.xls/C58EA28C-18C0-4a97-9AF2- 036E93DDAFB3/2009BradleyBdgt-send.xisSchedule B-Budget Detail Page 2 of 4 BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B AMENDED 31-Dec-07 | FY2007 FY2007 FY2008 FY2008 FY2009 BUDGET ACTUAL VARIANCE BUDGET YTD ACTUAL BUDGET SUMMARY (A) HEA Annual Operations & Maintenance 1,494,965 1,223,457 271,508 1,750,709 753,492 1,932,339 (B) CEA Dispatch and Substation/SVC Maintenance 130,000 85,118 44,882 103,356 26,082 70,500 (C) Other O&M and Maintenance Projects 444,521 425,763 18,758 453,740 189,671 437,540 (D) Insurance Costs 605,357 622,670 (17,313) 648,481 575,451 642,270 (E) Regulatory Costs 331,000 326,455 4,545 340,000 19,592 355,000 (H) Contingencies 0 0 0 100,000 0 0 3,005,843 2,683,463 322,380 3,396,286 1,564,288 3,437,649 (F) Administrative Costs 274,500 245,350 29,150 274,500 228,729 259,500 3,280,343 2,928,813 351,530 3,670,786 1,793,017 3,697,149 (G) BUDGET ADJUST ESTIMATE 0 0 0 0 0 0 |__3,280,343 2,928,813 351,530 3,670,786 1,793,017 3,697,149 | 3/10/2008 2:32 PM http://69.178.6.44/exchange/SHowell/Inbox/FW: Revised FY09 Budget Proposal.EML/2009BradleyBdgt-send.xls/C58EA28C-18C0-4a97-9AF2- 036E93DDAFB3/2009BradleyBdgt-send.xlsSchedule B-Budget Detail Page 1 of 4 BRADLEY LAKE MONTHLY UTILITY CONTRIBUTION SCHEDULE C PERCENT POWER PURCHASER SHARE CHUGACH ELECTRIC 30.4% MUNICIPALITY OF ANCHORAGE 25.9% AEG&T-HEA 12.0% AEG&T-MEA 13.8% GOLDEN VALLEY ELECTRIC 16.9% CITY OF SEWARD 1.0% Rounding 100.0% PERCENT POWER PURCHASER SHARE CHUGACH ELECTRIC 30.4% MUNICIPALITY OF ANCHORAGE 25.9% AEG&T-HEA 12.0% AEG&T-MEA 13.8% GOLDEN VALLEY ELECTRIC 16.9% CITY OF SEWARD 1.0% 100.0% ACTUAL FY2007 TOTAL 4,817,736 4,104,588 1,901,736 2,187,000 2,678,280 158,484 15 15,847,809 FY2007 MONTHLY AVERAGE 401,478 342,049 158,478 182,250 223,190 13,207 1,320,652 BUDGET FY2008 BUDGET FY2009 FY2009 TOTAL TOTAL 4,982,436 5,131,992 149,556 4,244,904 4,372,320 127,416 1,966,752 2,025,780 59,028 2,261,760 2,329,656 67,896 2,769,840 2,852,976 83,136 163,896 168,816 4,920 2 2 16,389,590 16,881,542 491,952 BUDGET FY2008 MONTHLY FY2009 FY2009 AVERAGE MONTHLY 415,203 427,666 12,463 353,742 364,360 10,618 163,896 168,815 4,919 188,480 194,138 5,658 230,820 237,748 6,928 13,658 14,068 410 1,365,799 1,406,795 3/10/20082:32 PM http://69.178.6.44/exchange/SHowell/Inbox/FW: Revised FY09 Budget Proposal.EML/2009BradleyBdgt-send.xls/C58EA28C-18C0-4a97-9AF2- 036E93DDAFB3/2009BradleyBdgt-send.xlsSchedule C Utility Contrib BRADLEY LAKE R&C FUND DISBURSEMENTS AND REPAYMENTS SCHEDULE D Description R&C FUND PROJECTS Replace Runners Replace cable from dam to power house Replace power system stabilizer Replace two RTUs Culver Repairs (Current Year R&C Repayment Adjust for Current Year Budget Less Interest in Fund Applied to Repayment Net Transfer from Revenue Fund (Cumulative Prior Years R&C Repayments Actual TO REPAY at 06/30/06 1,012,132.97 0.00 598,761.00 38,783.54 0.00 0.00 0.00 0.00 1,649,677.51 (Cumulative Retained Interest R&C Fund Interest NET DUE TO R&C FUND R&C FUND CASH FLOW PROJECTION Beginning Investment Balance Disbursements-current year Disbursements-prior year accrued Utilities' R&C Repayment Current year interest earnings Accrued R&C Payable at year end Ending Investment Balance PROJECTED NET DUE + ENDING INVESTMENT BALANCE REPAYMENT AMOUNT $1,649,677 X 25% $4,139,810 X 25% $1,498,383 X 25% $1,160000 X 25% Actual Disburse 1,556,895.86 22,957.82 865,865.17 1,688,944.42 0.00 5,146.54 4,139,809.81 Actual TO REPAY at 06/30/07 2,569,028.83 22,957.82 1,464,626.17 1,727,727.96 0.00 5,146.54 0.00 0.00 5,789,487.32 3,265,726.37 4,215,566.49 (4,139,809.81) (56,861.04) 412,419.38 327,184.52 975,774.09 1,734,273.63 5,000,000.00 412,419.25 1,034,952.45 1,447,371.70 PROJECTED Disburse 46,563.90 228,134.87 482,034.83 660,955.04 80,694.46 1,498,383.10 PROJECTED TO REPAY at 06/30/08 2,615,592.73 251,092.69 1,946,661.00 2,388,683.00 0.00 85,841.00 0.00 7,287 ,870.42 PROJECTED Disburse 0.00 0.00 0.00 0.00 200,000.00 50,000.00 800,000.00 0.00 1,050,000.00 PROJECTED TO REPAY at 06/30/09 2,615,592.73 251,092.69 1,946,661.00 2,388,683.00 200,000.00 135,841.00 800,000.00 0.00 8,337,870.42 (1,821,967.61)} (85,042.02) 663,626.87 4, 184,696.58 1,734,273.63 (1,498,383.10) (975,774.09) 1,447,371.70 107,815.28 0.00 815,303.42 5,000,000.00 412,419.38 1,034,952.45 374,595.78 1,821,967.61 (3,103, 173.84) 621,084.85 3,881 313.52 815,303.42 (1,050,000.00) 0.00 1,243,382.76 110,000.00 0.00 7,118,686.18 5,000,000.00 412,419.38 1,034,952.45 374,595.78 262,500.00 2,084,467.61 3/10/20082:33 PM http://69.178.6.44/exchange/SHowell/Inbox/FW: Revised FY09 Budget Proposal.EML/2009BradleyBdgt-send.xls/C58EA28C-18C0-4a97-9AF2-036E93DDAFB3/2009BradleyBdgt- send.xlsSchedule D R&C Disb & Repay BRADLEY LAKE BUDGET PROJECTED CASH FLOW BY FUND SCHEDULE G Rev Fund O&M Fund Debt Fund Op Reserve R&C Cap Reserve Total FY2008 Budget Revenues 16,389,592 - 16,389,592 Interest 1,199,527 - - 107,815 1,307,342 Transfers to O&M (3,670,786) 3,670,786 - . Transfers to Debt Service (12,269,850) 12,269,850 = Payback of R&C Fund (1,447,372.00) - 1,447,372 - Other Prior Year Payables (413,871) (413,871) O&M Requisitions (4,492,783) (4,492,783) Due To R&C at Year End - - - Capital Requistions (203,546) 203,546 - (2,474,157) (2,474,157) Renewals/Replacements (203,546) - - (203,546) To Excess Earnings fund (258,555) (258,555) Debt Payments (12,269,850) (12,269,850) Increase Op Reserve (48,000) 48,000 = 6/30/2008 Projected Balance 808,383 0 - 734,400 815,304 12,834,000 15,192,087 A FY2009 Budget - Revenues 16,881,542 - 16,881,542 Interest 1,449,024 110,000 1,559,024 Transfer back interest - - Transfers to O&M (3,697,149) 3,697,149 - = Transfers to Debt Service (12,268,950) 12,268,950 - Payback of R&C Fund (1,243,383) 1,243,383 - 2008 O&M Reauisitions (3,697,149) (3,697,149) 2008 Capital Requistions (220,000) 220,000 - = Renewals/Replacements (220,000) - (1,050,000) - (1,270,000) To Excess Earnings fund (275,000) (275,000) Payment of Prior Year Deficit - - Debt Payments (12,268,950) (12,268,950) Increase Op Reserve (5,000) 5,000 : 6/30/2009 Projected Balance 1,429,467 0 - 739,400 1,118,686 12,834,000 16,121,554 Assumption: should be 20.00% For purpose of budget cash flows, July 01 debt service projected 20.00% is assumed to be disbursed on June 30 3/10/20082:33 PM http://69.178.6.44/exchange/SHowell/Inbox/FW: Revised FY09 Budget Proposal.EML/2009BradleyBdgt-send.xls/C58EA28C-18C0-4a97-9AF2- 036E93DDAFB3/2009BradleyBdgt-send.xisSchedule G-Cash balances BRADLEY LAKE BUDGET PROJECTED INTEREST INCOME SCHEDULE | Beginning Balance Receipts Utility Contributions Interest Income Received Equipment Sale Repay Prior Year Deficit Disbursements Prior year accrued expenses © & M Expenses R&C Fund Disbursement-Sch D Debt Service Payment SCH A Capital Excess Eamings Transfer Other Adjustment-Equal Sch G Adjust to Actual Endin e Interest income Projection Estimated Accrued interest Adjust to Actual Received CHK TP SCH G TOTAL Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec.08 Jan-09 Feb-09 Mar-09 -09 May-09 Jun-09 OTHER ADJ 15,192,087.02 15,192,087.02 17,123,882.19 17,616,247.55 18,523,185.27 _ 19,500,122.99 20,522,060.70 _21,643,998.42 _20,638,134.99 21,675,215.26 22,877,152.08 23,494,518.34 24,666,456.06 _25,218,821.43 16,881,542.00 1,406,795.17 1,406,795.17 1,406,795.17 1,408,795.17 1,408,795.17 1,408,795.17 1,406,795.17 1,406,795.17 1,406,795.17 1,406,795.17 1,406,795.17 _1,406,795.17 ADJ INTEREST 1,559,023.75 800,000.00 0.00 0.00 0.00 0.00 0.00 706,816.41 0.00 0.00 0.00 0.00 0.00 SRNNESIMEEE TO ACCRUAL BASIS 0.00 0.00 0.00 0.00 0.00 76,440,565.75 2,206,705.17 1,406,795.17 _1,406,795.17 1,406,705.17 1,406,795.17 1,406,705.17 _2,11361157 1,406,705.17 _1,406,705.17 _1,406,705.17 _1,406,705.17 _1,406,795.17 52,207.34 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (3,697, 149.00) 0.00 (739,429.80) (184,857.45) (184,857.45) (184,857.45) (184,857.45) 0.00 (369,714.90) (184,857.45) (739,429.80) (184,857.45) (739,429.80) (1,050,000.00) 0.00 (110,000.00) (220,000.00) (220,000.00) (200,000.00) /~—_(100,000.00) 0.00 0.00 (20,000.00) (60,000.00) (60,000.00) (80,000.00) (12,268,950.00) 0.00 0.00 0.00 0.00 0.00 0.00 (3,119,478.00) 0.00 0.00 0.00 0.00 0.00 (9,149,475.00) ASSUME DEBT (220,000.00) 0.00 (65,000.00) (95,000.00) (28,000.00) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (35,000.00) 0.00 (275,000.00) (275,000.00) 0.00 0.00 0.00 0.00 (17,511,099.00) (275,000.00) (914,429.80) (499,857.45) (429,857.45) (384,857.45) (284,857.45) _(3,119,475.00) (369,714.90) (204,857.45) (789,429.80) (234,857.45) (654,429.80) _(9,149,475.00) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 25,218,821.43 23,494,518.34 16,121,553.77__17,123,882.19 _17,616,247.55__18,523,185.27 _19,500,122.99 _20,522,060.70 _ _20,638,134.99 _21,675,215.26 1,559,023.75 105,311.88 108,339.92 113,917.59 119,925.76 126,210.67 133,110.59 126,924.53 133,302.57 140,694.49 144,491.29 151,698.70 155,095.75 1,559,023.75 151,698.70 133,110.59 706,816.41 144,491.29 105,311.88 108,339.92 143,917.59 119,925.76 126,210.67 Payment of Accrued Interest 126,924.53 140,694.49 0.00 3/10/20082:33 PM http://69.178.6.44/exchange/SHowell/Inbox/FW: Revised FY09 Budget Proposal.EML/2009BradleyBdgt-send.xls/C58EA28C-18C0-4a97-9AF2-036E93DDAFB3/2009BradleyBdgt-send.xisSchedule I-Interest Inc R&C PROJECTS DISBURSEMENTS Governor Project FY02 FY03 FY04 FY05-PD FROM R&C IN 06 FY06 FYO7 FY08 as of 01/31/08 COMPLETED Needle Repairs FY02 FY03 FY04 COMPLETED Runner Repairs Fy02 FY03 FY04 FY05 FY06 FY07 FY08 as of 01/31/08 ESTIMATED ADDT'L FY08 COMPLETED BY FY09 PROJECTED ADDITIONAL PROJECTED TOTAL SCADA Fy02 FY03 FY04 COMPLETED Cable Repair FYO6 FY07 FY08 as of 01/31/08 ESTIMATED ADDT'L FY08 ESTIMATED ADDT'L FY09 PROJECTED ADDITIONAL PROJECTED TOTAL RTU Replacements FY07 FY08 as of 01/31/08 ESTIMATED ADDT'L FY08 ESTIMATED ADDT'L FY09 PROJECTED ADDITIONAL PROJECTED TOTAL RFL RELAYS FY07 FY08 as of 01/31/08 ESTIMATED ADDT'L FY08 ESTIMATED ADDT'L FY09 PROJECTED ADDITIONAL PROJECTED TOTAL R&C Fund Construction FD Total 263.17 0.00 263.17 103,213.18 0.00 103,213.18 135,710.34 0.00 135,710.34 256,783.06 1,238,667.17 1,495,450.23 1,144,301.48 577,446.49 = 1,721,747.97 1,556,895.86 0.00 1,556,895.86 46,563.90 0.00 46,563.90 3,243,730.99 1,816, 5,059,844.65 14,645.52 0.00 14,645.52 909,158.20 0.00 909,158.20 560,510.51 0.00 560,510.51 1,484,314.23 1,484,314.23 14,256.00 0.00 14,256.00 27,631.63 0.00 27,631.63 78.76 0.00 78.76 0.00 0.00 0.00 598,760.80 0.00 598,760.80 865,865.17 0.00 865,865.17 324,748.00 0.00 324,748.00 1,831,340.36 0.00 1,831,340.36 157,208.00 0.00 157,208.00 0.00 0.00 0.00 157,208.00 0.00 157,208.00 1,988,548.36 0.00 1,988,548.36 115,049.07 0.00 115,049.07 173,697.03 0.00 173,697.03 305.35 0.00 305.35 289,051.45 0.00 289,051.45 38,783.54 0.00 38,783.54 1,688,944.42 0.00 1,688,944.42 610,631.76 0.00 610,631.76 2,338,359.72 0.00 2,338,359.72 50,323.00 0.00 50,323.00 0.00 0.00 0.00 50,323.00 0.00 50,323.00 2,388,682.72 0.00 2,388,682.72 5,146.54 0.00 5,146.54 15,694.16 0.00 15,694.16 5,146.54 5,146.54 64,999.84 0.00 64,999.84 50,000.00 0.00 50,000.00 114,999.84 0.00 114,999.84 120,146.38 0.00 120,146.38 22,957.82 0.00 22,957.82 228,134.87 0.00 228,134.87 251,092.69 0.00 251,092.69 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 251,092.69 0.00 251,092.69 157,208.00 50,323.00 64,999.84 272,530.84 Bradley Lake Staffing Changes and Increased labor Costs The Bradley Lake O&M labor cost estimate has increased approximately 9% from FY08 to FY09. Part of this is due to a 3% inflationary increase. The rest is from HEA’s attempts to address and correct noted staffing deficiencies. When the plant was originally built the FERC license indicated the plant would utilize three operators and one superintendent to man the plant. For various reasons the staffing changed from this arrangement a number of years ago to four operators and no on-site Superintendent. One reason for this change was that three operators were insufficient to provide coverage as any unanticipated absence due to illness, injury or emergency leave would leave the site undermanned or require excessive overtime on the part of the remaining operators. Three operators also meant that there were times when a plant operator would spend multiple days at the plant working alone. Due to safety considerations it is not desirable to have an operator at the Plant alone. To that end HEA began a program that utilized 4 operators in rotation. At this time the superintendent was no longer living at the site which resulted in additional deficiencies which included a lack of project management/coordination. It became clear over time that the plant was suffering due to lack of sufficient on-site management oversight and it was determined that the superintendent needed to have a presence at the plant more than a day or so per week. To correct this issue HEA rearranged staffing to include a full time on-site Bradley Lake plant superintendent. HEA also changed the staffing to include three operators assigned to the Bradley Lake site and supplement them with “roving Operators” normally stationed at the Nikiski site. HEA has three rovers. Their duties include O&M of Nikiski, Seldovia, and Bradley Lake on a rotating basis. By doing so we are allowed to keep at least three operators in reserve that can be called upon to serve at Bradley when there is an absence that is not anticipated. It also allows HEA to maintain a cadre of trained operators that are ready to operate at Bradley in case of a long term illness, injury or retirement of any of the existing operators. The rovers account for one full time equivalent position at Bradley so we are manning the plant with 4 FTE operators and a superintendent. This allows for good management oversight, succession planning and training. The FY09 Bradley budget includes the following management: Director of Power Production and Transmission — 15% of FTE Manager of Power Production — 30% of FTE Plant Superintendent — 100% of FTE TELECONFERENCE INSTRUCTIONS Tuesday, March 11, 2008 — 10:00 a.m. To join the meeting, please do the following: Dial 1-800-315-6338 Enter 3028#