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HomeMy WebLinkAboutBradley Lake PMC Meeting 12-9-97 @ AIDEA 2 | Call ol Ordo Start q 004 Ht Stop 9 45am 2.) Roll Catt a 3.) Poblie “Roll Call —hbee Hackige 2 hoe gebedi WD a ty. 3 Te Gp > siya y Ey pe Woes 4 7 a : moor uf Matias aca - oa fh cathy Bere Meet oy Baers Ler Abby +0 brewer fo fer | | Aes ane Ban te slate J tle. law .. oo . LAU pte bAR si po ave bb bonh Seton Ayn. om Page 4. yen | [SF pel / S vv War vill gr bth. Lfag Cane Motion Ho Np prove Peodatcwss Dae Lobe Hatin OE Let 5 Hel ick. oe tel | Sakten - Lrebd wh --- 10), Mo — Done | Soxbe- crtin Sox oll ted tomy TRL Blom — Cro bbe — rm Hes tage steff- wed y herd. - + Corwin thd. Tay vere (Dd nacho ee nated oe ube. | Toth 2 "2.7 tilliex peso whe 74% Mie + ti EB Time 98 45 I Lane so ~ [0200 am. ie Creme- Crrdinve ths Sy (ee (0:2 OS mente prcea- (O4:35 ems I e (5) ee est { 6 Awe other ee — — ———————— {ft {| ei eer pee ALASKA INDUSTRIAL DEVELOPMENT e_ * AND EXPORT AUTHORITY = ALASKA ME =ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA Tuesday, December 9, 1997 — 9:00 a.m. Alaska Industrial Development and Export Authority Board Room — 4°30 West Tudor Road is CALL TO ORDER Bjornstad 2. ROLL CALL (for Committee members 3. PUBLIC ROLL CALL (for all others pre sent) 4. PUBLIC COMMENT 5: AGENDA COMMENTS 6. APPROVAL OF MEETING MINUTES -- November 5, 1997 We BUDGET SUBCOMMITTEE REPORT 8. OPERATION AND DISPATCH SUBCC MMITTEE REPORT _Me€rohan VO) Niche 9. OLD BUSINESS A. Spinning Reserves Update Lovas B. Budget Subcommittee Bond Refunding Griffith C. Settlement Agreements McCrohan 10. NEW BUSINESS 11. © COMMITTEE COMMENTS A. Next Meeting Date Bjornstad 12. ADJOURNMENT ALASKA INDUSTRIAL DEVELOPMENT e_~ * AND EXPORT AUTHORITY f= ALASKA @@E™ ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA TELECONFERENCE Wednesday, December 10, 1997 — 10:00 a.m. Alaska Industrial Development and Export Authority Board Room — 480 West Tudor Road 1. CALL TO ORDER Bjornstad 2 ROLL CALL (for Committee members) 3. PUBLIC ROLL CALL (for all others present) 4. PUBLIC COMMENT 5. AGENDA COMMENTS 6. NEW BUSINESS A. Bond Pricing Griffith Ue COMMITTEE COMMENTS A. Next Meeting Date Bjornstad 8. ADJOURNMENT Bradley Lake PMC Meetings are as follows: Regular Meeting Tuesday, December 9, 1997 at 9:00 a.m. Location: Alaska Industrial Development and Export Authority 480 West Tudor Road Large Conference Room Tel nference Meetin Wednesday, December 10, 1997 at 10:00 a.m. Location: Alaska Industrial Development and Export Authority 480 West Tudor Road Large Conference Room (This location is where the public can come to attend the teleconference.) AGREEMENT TO SUPPORT FORWARD REFUNDING THIS AGREEMENT dated as of December 9, 1997, is entered into by and among the CHUGACH ELECTRIC ASSOCIATION, INC., the GOLDEN VALLEY ELECTRIC ASSOCIATION, INC., the MUNICIPALITY OF ANCHORAGE d/b/a MUNICIPAL LIGHT AND POWER, the CITY OF SEWARD d/b/a SEWARD ELECTRIC SYSTEM, the ALASKA ELECTRIC GENERATION & TRANSMISSION COOPERATIVE, INC., the HOMER ELECTRIC ASSOCIATION, INC., the MATANUSKA ELECTRIC ASSOCIATION, INC., and the ALASKA ENERGY AUTHORITY (individually the "Party" and collectively the "Parties"). RECITALS (A) The Parties have previously entered into a Power Sales Agreement dated as of December 8, 1987 ("Power Sales Agreement") for the sale and purchase of electric power produced by the Bradley Lake Hydroelectric Project (the "Project"). Pursuant to the terms of the Power Sales Agreement, the Parties, acting through the Project Management Committee ("PMC"), have requested the Alaska Energy Authority ("Authority") to enter into the Forward Delivery Agreement ("FD Agreement") with Goldman, Sachs & Co. ("Goldman"), attached hereto as Appendix A, and the Disclosure Agreement described in paragraph (C) below, to sell and deliver its Refunding Bonds (as defined in the FD Agreement) to refinance a portion of the Project’s outstanding debt. (B) Under the terms of the FD Agreement, Goldman may request from time to time, certain certificates and opinions and the Authority is obligated to deliver those certificates and opinions to Goldman, and the Authority is further obligated to update the Official Statement relating to the Refunding Bonds (the "Official Statement") at certain times specified in the FD Agreement. (C) Under the terms of the Continuing Disclosure Agreement among the Authority, the Dissemination Agent and the Bond Trustee required in connection with the issuance of the Refunding Bonds (the "Disclosure Agreement") attached hereto as Appendix B, the Authority has agreed to provide certain annual financial information and operating data relating to the - 1 - LGH\1077igh.agr 12/4/97 Project and the Parties and to provide notices of the occurrence of certain enumerated events. (D) The PMC and the Parties have participated with Goldman and other financing participants in the preparation of the Official Statement. (E) The PMC, on behalf of the Parties, has determined it is in the best interests of the Parties and their customers and ratepayers that the proposed refinancing be completed by the issuance of the Refunding Bonds and that the timely furnishing by the Parties of the certificates and opinions and information relating to the Official Statement required under the FD Agreement, and the annual financial information required under the Disclosure Agreement, is a reasonable obligation of each Party. NOW, THEREFORE, in consideration of the foregoing, the Parties agree as follows: Section 1. DEFINITIONS. Capitalized terms used but not defined herein shall have the meanings assigned in the FD Agreement or the Disclosure Agreement. Section 2. AGREEMENT TO FURNISH INFORMATION, CERTIFICATES AND OPINIONS. Each Party agrees to exercise all reasonable efforts in good faith to provide, on a timely basis, the certificates, opinions and other information which are required to be delivered by each Party under the FD Agreement to the parties specified therein, including but not limited to the following: (A) The information required to prepare an Updated Official Statement as required under Section 5(c) of the FD Agreement, which shall be provided, in a timely manner, upon the written request of Goldman or the Authority to enable the preparation of an Updated Official Statement between March 1, 1999, and March 15, 1999, and between March 1, 2000, and March 15, 2000; (B) From time to time, during the period from the date of Closing to and including the date that is 25 days following the end of the Underwriting Period, the information required under Section 5(d) of the FD Agreement necessary to ensure that the Official Statement is accurate and complete and not misleading; = 2. = LGH\1077Igh.agr 12/4/97 (C) At any time from the date of Closing to the end of the Underwriting Period, upon the written request of Goldman, the certificates that may be required under Section 5(f) of the FD Agreement; (D) From time to time and at the request of Goldman, the certificates and opinions that may be required under Section 5(g) of the FD Agreement; (E) At the time of Closing, the certificates and opinions required under Sections 11(a)(8) and 11(a)(9) of the FD Agreement; and (F) | Upon 30 days’ written notice of the PMC, on each Settlement Date, the certificates and opinions required under Sections 13(9) and 13(10) of the FD Agreement. The Settlement Date for the Third Series Bonds will be betweeri April 6, 1999, and April 9, 1999, and the Settlement Date for the Fourth Series Bonds will be between April 4, 2000, and April 7, 2000. Each Party, Goldman and counsel to the Authority, Goldman and the Railbelt Utility Group shall participate in the preparation of the Official Statement and each Updated Official Statement and any amendments or supplements thereto and shall receive copies of all drafts thereof and have the opportunity to comment thereon. Section 3. AGREEMENT OF CONTINUING DISCLOSURE. Each Party, other than the Authority, agrees to provide to the Chairman of the PMC on or before September 1 of each year commencing September 1, 1998, the Annual Report of each such Party required under the Disclosure Agreement as follows: The Annual Report of each Party (other than the Authority) shall contain or incorporate by reference the following: (A) Audited Financial Statements of the Party or, if the Audited Financial Statements of a Party are not available on the Power Purchasers’ Submission Date, the unaudited financial statements for the most recent Fiscal Year in a format similar to the Audited Financial Statements most recently prepared for the Power Purchaser; and -3- LGH\1077Igh.agr 12/4/97 (B) Financial information and operating data regarding the Party for the prior fiscal year of the type contained in the Official Statement under the caption "THE POWER PURCHASERS" in the following tables: (A) Selected Statistics for Power Purchasers; (B) Power Purchasers’ Power Requirements; (C) Energy Loads and Resources; and (D) Historical Operating Results. The Parties (other than the Authority) further agree to cause the Chairman of the PMC to deliver the Annual Reports to the Dissemination Agent at the times and in the manner required under the Disclosure Agreement. Section 4. FURTHER ASSURANCES. The Parties shall take all reasonable actions and make all reasonable efforts to complete Settlement of the Refunding Bonds pursuant to the FD Agreement. Section 5. THIRD PARTY BENEFICIARY. The Parties agree that Goldman is a third-party beneficiary of this Agreement. Section 6. REMEDIES. In recognition of the potential losses and the irreparable harm which would be incurred by Goldman and the Parties by a Party’s failure to comply with its obligations under this Agreement and the difficulty of determining the extent of such losses and harm, the Parties agree that this Agreement may be enforced against any Party who has failed to comply by any remedy available to the Parties and Goldman, including, without limitation, specific performance or mandamus. -4- LGH\1077Igh.agr 12/4/97 Section 7. EXECUTION OF COUNTERPARTS. This Agreement may be executed in several counterparts each of which shall be an original and all of which shall constitute but one and the same instrument. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the effective date of the FD Agreement. ALASKA ENERGY AUTHORITY CHUGACH ELECTRIC ASSOCIATION, INC. By: Its: GOLDEN VALLEY ELECTRIC ASSOCIATION, INC. By: Its: MUNICIPALITY OF ANCHORAGE d/b/a MUNICIPAL LIGHT AND POWER By: Its: CITY OF SEWARD d/b/a SEWARD ELECTRIC SYSTEM By: Its: ALASKA ELECTRIC GENERATION & TRANSMISSION COOPERATIVE, INC. By: Its: HOMER ELECTRIC ASSOCIATION, INC. By: _ Its: MATANUSKA ELECTRIC ASSOCIATION, INC. By: Its: LGH\1077igh.agr 12/4/97 Section 7. EXECUTION OF COUNTERPARTS. This Agreement may be executed in several counterparts each of which shall be an original and all of which shall constitute but one and the same instrument. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the effective date of the FD Agreement. ALASKA ENERGY AUTHORITY By: D. RANDY SIMMONS Its:_Executive Director CHUGACH ELECTRIC ASSOCIATION, INC. GOLDEN VALLEY ELECTRIC ASSOCIATION, INC. By: Its: MUNICIPALITY OF ANCHORAGE d/b/a MUNICIPAL LIGHT AND POWER By: Its: CITY OF SEWARD d/b/a SEWARD ELECTRIC SYSTEM By: Its: ALASKA ELECTRIC GENERATION & TRANSMISSION COOPERATIVE, INC. By: Its. HOMER ELECTRIC ASSOCIATION, INC. By: Its: MATANUSKA ELECTRIC ASSOCIATION, INC. By: Its: LGH\1077Igh.agr 12/4/97 Section 7. EXECUTION OF COUNTERPARTS. This Agreement may be executed in several counterparts each of which shall be an original and all of which shall constitute but one and the same instrument. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the effective date of the FD Agreement. ALASKA ENERGY AUTHORITY By: D. RANDY SIMMONS Its:_Executive Director CHUGACH ELECTRIC ASSOCIATION, INC. By: Its: GOLDEN VALLEY ELECTRIC ASSOCIATION, INC. MUNICIPALITY OF ANCHORAG d/b/a MUNICIPAL LIGHT AND POWER By: Its: CITY OF SEWARD d/b/a SEWARD ELECTRIC SYSTEM By: Its: ALASKA ELECTRIC GENERATION & TRANSMISSION COOPERATIVE, INC. By: Its: HOMER ELECTRIC ASSOCIATION, INC. By: Its: MATANUSKA ELECTRIC ASSOCIATION, INC. By: Its: LGH\1077igh.agr 12/4/97 Section 7. EXECUTION OF COUNTERPARTS. This Agreement may be executed in several counterparts each of which shall be an original and all of which shall constitute but one and the same instrument. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the effective date of the FD Agreement. ALASKA ENERGY AUTHORITY By: D. RANDY SIMMONS Its:_Executive Director CHUGACH ELECTRIC ASSOCIATION, INC. By: Its: GOLDEN VALLEY ELECTRIC ASSOCIATION, INC. By: Its: MUNICIPALITY OF ANCHORAGE d/b/a MUNICIPAL LIGHT AND POWER ty Bey Lan CITY OF SEWARD d/b/a SEWARD ELECTRIC SYSTEM By: Its: ALASKA ELECTRIC GENERATION & TRANSMISSION COOPERATIVE, INC. By: Its: HOMER ELECTRIC ASSOCIATION, INC. By: Its: MATANUSKA ELECTRIC ASSOCIATION, INC. By: Its: LGH\1077igh.agr 12/4/97 Section 7. EXECUTI OF COUNTERPARTS. This Agreement may be executed in several counterparts each of which shall be an original and all of which shall constitute but one and the same instrument. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the effective date of the FD Agreement. ALASKA ENERGY AUTHORITY By: D. RANDY SIMMONS Its:_Executive Director CHUGACH ELECTRIC ASSOCIATION, INC. By: Its: GOLDEN VALLEY ELECTRIC ASSOCIATION, INC. By: Its: MUNICIPALITY OF ANCHORAGE d/b/a MUNICIPAL LIGHT AND POWER By: Its: CITY OF SEWARD d/b/a SEWARD ELECTRIC SYSTEM ALASKA ELECTRIC GENERATION & TRANSMISSION COOPERATIVE, INC. By: Its: HOMER ELECTRIC ASSOCIATION, INC. By: Its: MATANUSKA ELECTRIC ASSOCIATION, INC. By: Its: LGH\1077igh.agr 12/4/97 Section 7. EXECUTION OF COUNTERPARTS. This Agreement may be executed in several counterparts each of which shall be an original and all of which shall constitute but one and the same instrument. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the effective date of the FD Agreement. ALASKA ENERGY AUTHORITY By: D. RANDY SIMMONS Its:_Executive Director CHUGACH ELECTRIC ASSOCIATION, INC. By: Its: GOLDEN VALLEY ELECTRIC ASSOCIATION, INC. By: Its: MUNICIPALITY OF ANCHORAGE d/b/a MUNICIPAL LIGHT AND POWER By: Its: CITY OF SEWARD d/b/a SEWARD ELECTRIC SYSTEM By: Its: ALASKA ELECTRIC GENERATION & TRANSMISSION COOPERATIVE, INC. By: Its: . HOMER ELECTRIC ASSOCIATION, INC. By: Its: MATANUSKA ELECTRIC ASSOCIATION, INC. By: Its: LGH\1077igh.agr 12/4/97 ion 7. EXEC NTERPAR . This Agreement may be executed in several counterparts each of which shall be an original and all of which shall constitute but one and the same instrument. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the effective date of the FD Agreement. ALASKA ENERGY AUTHORITY By: Its:_ Executive Director CHUGACH ELECTRIC ASSOCIATION, INC. By: Its: GOLDEN VALLEY ELECTRIC ASSOCIATION, INC. By: Its: MUNICIPALITY OF ANCHORAGE d/b/a MUNICIPAL LIGHT AND POWER By: Its: iy RANDY SIMMONS CITY OF SEWARD d/b/a SEWARD ELECTRIC SYSTEM By: Its: ALASKA ELECTRIC GENERATION & TRANSMISSION COOPERATIVE, INC. By: Its: HOMER ELECTRIC ASSOCIATION, INC. By: Its: MATANUSKA ELECTRIC ASSOCIATION, INC. By: Its: LGH\1077igh.agr 12/4/97 Section 7. EXECUTION OF COUNTERPARTS. This Agreement may be executed in several counterparts each of which shall be an original and all of which shall constitute but one and the same instrument. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the effective date of the FD Agreement. ALASKA ENERGY AUTHORITY By: D. RANDY SIMMONS Its:_Executive Director CHUGACH ELECTRIC ASSOCIATION, INC. By: Its: GOLDEN VALLEY ELECTRIC ASSOCIATION, INC. By: Its: MUNICIPALITY OF ANCHORAGE d/b/a MUNICIPAL LIGHT AND POWER By: Its: CITY OF SEWARD d/b/a SEWARD ELECTRIC SYSTEM By: Its: ALASKA ELECTRIC GENERATION & TRANSMISSION COOPERATIVE, INC. By: Its: HOMER ELECTRIC ASSOCIATION, INC. By: Its: MATANUSKA ELECTRIC ASSOCIATION, INC. By: la paper) Cormnenry Its: Generar Mavace LGH\1077igh.agr 12/4/97 ALASKA INDUSTRIAL DEVELOPMENT * AND EXPORT AUTHORITY /= ALASKA mm =ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA Tuesday, December 9, 1997 — 9:00 a.m. Alaska Industrial Development and Export Authority Board Room — 480 West Tudor Road ie CALL TO ORDER oo Bjornstad 2. ROLL CALL (for Committee members) ye | 3. PUBLIC ROLL CALL (for all others present) “ 4. PUBLIC COMMENT ail 5. AGENDA COMMENTS Lal 6. APPROVAL OF MEETING MINUTES — November 5, 1997 a! i BUDGET SUBCOMMITTEE REPORT, 8. OPERATION AND DISPATCH SUBCOMMITTEE REPORT a McCrohan 9. OLD BUSINESS A. Spinning Reserves Update al O- Lovas —3. Budget Subcommittee Bond Refunding ~~ Griffith Cc Settlement Agreements ,— McCrohan 10. NEW BUSINESS | -— 11. © COMMITTEE COMMENTS A. Next Meeting Date Bjornstad 12. © ADJOURNMENT Bradley Lake PROJECT MANAGEMENT COMMITTEE MEETING ——" / 144°) (Date) ALDEA a Large. Red eeae oN (Location) PLEASE SIGN IN REPRESENTING Rrebes, u>r\ bhi J | WE AR YAER— 92Q2\IT9884 WV ae Municipality of Anchorage Municipal Light & Power mic Mystrom Mayor 1200 East First Avenue Anchorage, Alaska 99501-1685 Telephone: (907) 279-7671, Telecopiers: (907) 263-5804, 277-9272 December 8, 1997 Bradley Lake Hydroelectric Project Project Management Committee Re: Municipality of Anchorage dba Municipal Light & Power PMC Representative Effective immediately, and until further notice, the Representative of the Municipality of Anchorage, dba Municipal Light & Power on the Bradley Lake Project Management Committee shall be Meera Kohler. Her mailing address is 1200 East First Avenue, Anchorage, Alaska 99501, and her phone number is (907) 263-5202. Generation Manager HN:sc Putting Energy into Anchorage for Over 60 years ; Y Zul on SAVINGS BY UTILITY 7 Alaska Energy Authority Bradley Lake Hydroelectric Project Power Revenue Bonds, Third and Fourth Series Assumes Non Callable Rates as of December 8, 1997. Power Purchasers Chugach Golden Matanuska Homer City of Grand Electric ML&P Valley Electric Electric Seward Total Maturity 30.4% 25.9% 16.9% 13.8% 12.0% 1.0% 100.0% 71199 45,366.97 38,651.47 25,220.46 20,594.22 17,908.02 1,492.33 149,233.47 7M 100 218,973.48 186,559.64 121,731.97 99,402.44 86,436.90 7,203.08 720,307.50 7/1101 296,357.44 252,488.74 164,751.34 134,530.68 116,983.20 9,748.60 974,860.00 7/1102 296,529.96 252,635.72 164,847.25 134,609.00 117,051.30 9,754.28 975,427.50 7/1103 295,469.00 251,731.81 164,257.44 134,127.38 116,632.50 9,719.38 971,937.50 7/1104 296,377.20 252,505.58 164,762.33 134,539.65 116,991.00 9,749.25 974,925.00 7105 295,804.16 252,017.36 164,443.76 134,279.52 116,764.80 9,730.40 973,040.00 7106 295,728.16 251,952.61 164,401.51 134,245.02 116,734.80 9,727.90 972,790.00 7/1107 295,294.96 251,583.54 164,160.69 134,048.37 116,563.80 9,713.65 971,365.00 7/1108 296,586.96 252,684.29 164,878.94 134,634.87 117,073.80 9,756.15 975,615.00 7/1109 294,572.96 250,968.41 163,759.31 133,720.62 116,278.80 9,689.90 968,990.00 TANO 295,667.36 251,900.81 164,367.71 134,217.42 116,710.80 9,725.90 972,590.00 TAMA 294,990.96 251,324.54 163,991.69 133,910.37 116,443.80 9,703.65 970,365.00 TAN2 295,143.72 251,454.68 164,076.61 133,979.72 116,504.10 9,708.68 970,867.50 TAN 294,063.76 250,534.59 163,476.24 133,489.47 116,077.80 9,673.15 967,315.00 TAN 294,572.96 250,968.41 163,759.31 133,720.62 116,278.80 9,689.90 968,990.00 TANS 295,853.56 252,059.45 164,471.22 134,301.95 116,784.30 9,732.03 973,202.50 TANG 294,854.16 251,207.99 163,915.64 133,848.27 116,389.80 9,699.15 969,915.00 TANT 294,405.76 250,825.96 163,666.36 133,644.72 116,212.80 9,684.40 968,440.00 TNN8 100,574.60 85,686.91 55,911.54 45,655.58 39,700.50 3,308.38 330,837.50 TANG 101,197.80 86,217.86 56,257.99 45,938.48 39,946.50 3,328.88 332,887.50 7/1120 100,415.00 85,550.94 $5,822.81 45,583.13 39,637.50 3,303.13 330,312.50 71121 101,220.60 86,237.29 56,270.66 45,948.83 39,955.50 3,329.63 332,962.50 Total $5,690,021.49 $4,847,748.58 $3,163,202.74 $2,582,970.28 $2,246,061.12 $187,171.76 $18,717,175.97 Present Value $2,368,754.16 $2,018,116.21 $1,316,840.31 $1,075,289.72 $935,034.54 $77,919.54 $7,791,954.49 Savings SOURCES AND USES OF FUNDS - Alaska Energy Authority Bradley Lake Forward Refunding Bonds Power Revenue Bonds, Third Series Noncall Rates as of December 8, 1997 Dated Date 04/06/1999 Delivery Date 04/06/1999 Sources: Bond Proceeds: Par Amount 59, 485,000.00 Premium 1,579,402.55 61, 064,402.55 Other Sources of Funds: Interest Funds on Hand 1,427,357.50 62,491, 760.05 Uses: Refunding Escrow Deposits: PV cost of cashflows 61, 673,962.21 Delivery Date Expenses: Cost of Issuance 250,000.00 Underwriter's Discount 416,395.00 Bond Insurance (15 bps) 149,387.14 815,782.14 Other Uses of Funds: Contingency 2,015.70 62,491, 760.05 08-Dec-97 4:47 pm Prepared by Goldman, Sachs & Co. (Finance 3.104 AEA:1997) Page 3 SUMMARY OF REFUNDING RESULTS ie Alaska Energy Authority Bradley Lake Forward Refunding Bonds Power Revenue Bonds, Third Series Noncall Rates as of December 8, 1997 Dated Date 04/06/1999 Delivery Date 04/06/1999 Arbitrage yield 5 .888042% Escrow yield 5.250000% Bond Par Amount 59,485 ,000.00 True Interest Cost 5 .694094% Net Interest Cost 5.784220% All-In TIC 5.779374% . Average Coupon 5.956960% Average Life 11.318 Duration 7.982 Par amount of refunded bonds 59,110,000.00 Average coupon of refunded bonds 7.295145% Average life of refunded bonds 11.832 PV of prior debt to 12/19/1997 @ 5.888042% 62,000,011.79 Net PV Savings 5, 264,936.13 Percentage savings of refunded bonds 8.907014% Percentage savings of refunding bonds 8.850863% 08-Dec-97 4:47 pm Prepared by Goldman, Sachs & Co. (Finance 3.104 AEA:1997) Page 4 SAVINGS = Alaska Energy Authority Bradley Lake Forward Refunding Bonds Power Revenue Bonds, Third Series Noncall Rates as of December 8, 1997 Present Value Prior Refunding to 12/19/1997 Date Debt Service Debt Service Savings @ 5.8880418% 07/01/1999 2,141,036.25 1,991,802.78 149,233.47 136,528.33 07/01/2000 6,607,072.50 5,965,650.00 641,422.50 564,931.35 07/01/2001 6,609,322.50 5,967,400.00 641,922.50 533,074.88 07/01/2002 6,610,022.50 5,967,650.00 642,372.50 502,919.21 07/01/2003 6,605,807.50 5,967,000.00 638,807.50 471,621.04 07/01/2004 6,608,457.50 5,967,825.00 640,632.50 445 896.18 07/01/2005 3,336,552.50 2,694,575.00 641,977.50 421,210.79 07/01/2006 3,336,552.50 2,696,825.00 639,727.50 396,116.88 07/01/2007 3,336,552.50 2,698,800.00 637,752.50 372,674.14 07/01/2008 6,606,552.50 5,965,200.00 641,352.50 353,645.63 07/01/2009 6,609,477.50 5,970,400.00 639,077.50 332,261.62 07/01/2010 6,605,002.50 5,963,300.00 641,702.50 314,496.15 07/01/2011 6,607,402.50 5,968,900.00 638,502.50 294,982.68 07/01/2012 6,604,865.00 5,965,700.00 639,165.00 278,292.85 07/01/2013 6,606,302.50 5,968,400.00 637,902.50 261,724.37 07/01/2014 6,609,902.50 5,970,800.00 639,102.50 247,040.44 07/01/2015 6,608,852.50 5,967,000.00 641,852.50 233,695.69 07/01/2016 6,606,702.50 5,966,400.00 640,302.50 219,556.88 07/01/2017 6,606,640.00 5,967,800.00 638,840.00 206,250.71 111,263,076.25 99,591,427.78 11,671,648.47 6,586,919.82 Savings Summary Present Value Deliv Less: Prior Refunding to 12/19/1997 Date Funds on Hand Funds on Hand Total @ 5.8880418% 04/06/1999 = (1,427,357.50) 2,015.70 (1,425,341.80) (1,321,983.69) (1,321,983 .69) PV of savings from cash flow Adjustments Net PV Savings 6,586,919.82 (1,321, 983.69) 5, 264,936.13 08-Dec-97 4:47 pm Prepared by Goldman, Sachs & Co. (Finance 3.104 AEA:1997) Page 5 BOND PRICING -_ Alaska Energy Authority Bradley Lake Forward Refunding Bonds Power Revenue Bonds, Third Series Noncall Rates as of December 8, 1997 Maturity Bond Component Date Amount Rate Yield Price Serial Bonds: 07/01/1999 1,175,000 5.000% 5.080% 99.965 07/01/2000 2,565,000 5.000% 5.110% 99.861 07/01/2001 2,695,000 5.000% 5.140% 99.699 07/01/2002 2,830,000 5.500% 5.170% 100.963 07/01/2003 2,985,000 5.500% 5.200% 101.118 07/01/2004 3,150,000 5.500% 5.230% 101.214 . 07/01/2005 50,000 5.500% 5.260% 101.253 07/01/2006 55,000 5.500% 5.290% 101.240 07/01/2007 60,000 6.000% 5.320% 104.477 07/01/2008 3,330,000 6.000% 5.420% 104.161 07/01/2009 3,535,000 6.000% 5.520% 103.705 07/01/2010 3,740,000 6.000% 5.560% 103.630 07/01/2011 3,970,000 6.000% 5.600% 103.498 07/01/2012 4,205,000 6.000% 5.640% 103.315 07/01/2013 4,460,000 6.000% 5.690% 102.986 38,805,000 Term Bond due 2017: 07/01/2017 20,680,000 6.000% 5.710% 103.249 59,485,000 Dated Date 04/06/1999 Delivery Date 04/06/1999 First Coupon 07/01/1999 Par Amount 59,485,000.00 Premium ; 1,579,402.55 Production 61, 064,402.55 102.655127% Underwriter's Discount (416,395.00) (0.700000) Purchase Price 60,648,007.55 101.955127% Accrued Interest Net Proceeds 60,648,007.55 08-Dec-97 4:47 pm Prepared by Goldman, Sachs & Co. (Finance 3.104 AEA:1997) Page 6 BOND DEBT SERVICE Alaska Energy Authority Bradley Lake Forward Refunding Bonds Power Revenue Bonds, Third Series Noncall Rates as of December 8, 1997 Period Ending Principal Coupon Interest Debt Service 07/01/1999 1,175,000 5.000% 816,802.78 1,991,802.78 07/01/2000 2,565,000 5.000% 3,400,650.00 5,965,650.00 07/01/2001 2,695,000 5.000% 3,272,400.00 5,967,400.00 07/01/2002 2,830,000 5.500% 3,137,650.00 5,967,650.00 07/01/2003 2,985,000 5.500% 2,982,000.00 5,967,000.00 07/01/2004 3,150,000 5.500% 2,817,825.00 5,967,825.00 07/01/2005 50,000 5.500% 2,644,575.00 2,694,575.00 07/01/2006 55,000 5.500% 2,641,825.00 2,696,825.00 07/01/2007 60,000 6.000% 2,638,800.00 2,698,800.00 07/01/2008 3,330,000 6.000% 2,635,200.00 5,965,200.00 07/01/2009 3,535,000 6.000% 2,435,400.00 5,970,400.00 07/01/2010 3,740,000 6.000% 2,223,300.00 5,963,300.00 07/01/2011 3,970,000 6.000% 1,998,900.00 5,968,900.00 07/01/2012 4,205,000 6.000% 1,760,700.00 5,965,700.00 07/01/2013 4,460,000 6.000% 1,508,400.00 5,968,400.00 07/01/2014 4,730,000 6.000% 1,240,800.00 5,970,800.00 07/01/2015 5,010,000 6.000% 957,000.00 5,967,000.00 07/01/2016 5,310,000 6.000% 656,400.00 5,966,400.00 07/01/2017 5,630,000 6.000% 337,800.00 5,967,800.00 59,485,000 40,106,427.78 99,591,427.78 08-Dec-97 4:47 pm Prepared by Goldman, Sachs & Co. (Finance 3.104 AEA:1997) Page 7 SOURCES AND USES OF FUNDS = Alaska Energy Authority Bradley Lake Forward Refunding Bonds Power Revenue Bonds, Fourth Series Noncall Rates as of December 8, 1997 Dated Date 04/04/2000 Delivery Date 04/04/2000 Sources: Bond Proceeds: Par Amount 46,500,000.00 Premium 1,078,071.80 47,578,071.80 Other Sources of Funds: Interest Funds on Hand 1,110,045.83 48, 688,117.63 Uses: Refunding Escrow Deposits: PV cost of cashflows 48,217,108.49 Delivery Date Expenses: Underwriter's Discount 325,500.00 Bond Insurance (15 bps) 131,194.51 Forward Commitment Fee 13,119.45 469,813.96 Other Uses of Funds: Contingency 1,195.18 48, 688,117.63 08-Dec-97 4:47 pm Prepared by Goldman, Sachs & Co. (Finance 3.104 AEA:1997) Page 8 SUMMARY OF REFUNDING RESULTS = Alaska Energy Authority Bradley Lake Forward Refunding Bonds Power Revenue Bonds, Fourth Series Noncall Rates as of December 8, 1997 Dated Date 04/04/2000 Delivery Date 04/04/2000 Arbitrage yield 5 .888042% Escrow yield 5.250000% Bond Par Amount 46,500,000.00 True Interest Cost 6.233855% Net Interest Cost 6.327196% All-In TIC 6.269914% . Average Coupon 6.445615% Average Life 13.667 Duration 8.755 Par amount of refunded bonds 46,235,000.00 Average coupon of refunded bonds 7.235091% Average life of refunded bonds 14.174 PV of prior debt to 12/19/1997 @ 5.888042% 46,109,659.18 Net PV Savings 2,527,018.35 Percentage savings of refunded bonds 5.465596% Percentage savings of refunding bonds 5 .434448% 08-Dec-97 4:47 pm Prepared by Goldman, Sachs & Co. (Finance 3.104 AEA:1997) Page 9 SAVINGS = Alaska Energy Authority Bradley Lake Forward Refunding Bonds Power Revenue Bonds, Fourth Series Noncall Rates as of December 8, 1997 Present Value Prior Refunding to 12/19/1997 Date Debt Service Debt Service Savings @ 5.8880418% 07/01/2000 1,665,068.75 1,586,183.75 78,885.00 68,100.25 07/01/2001 4,965,137.50 4,632,200.00 332,937.50 276,886.74 07/01/2002 4,966,505.00 4,633,450.00 333,055.00 261,085.01 07/01/2003 4,969,005.00 4,635,875.00 333,130.00 246,207.04 07/01/2004 4,966,817.50 4,632,525.00 334,292.50 232,881.72 07/01/2005 4,969,462.50 4,638,400.00 331,062.50 217,397.62 07/01/2006 2,665,737.50 2,332,675.00 333,062.50 206,063.88 07/01/2007 2,665,737.50 2,332,125.00 333,612.50 194,767.23 07/01/2008 2,665,737.50 2,331,475.00 334,262.50 184,144.44 07/01/2009 2,665,737.50 2,335,825.00 329,912.50 171,539.99 07/01/2010 2,665,737.50 2,334,850.00 330,887.50 162,346.85 07/01/2011 4,970,737.50 4,638,875.00 331,862.50 153,645.06 07/01/2012 4,969,777.50 4,638,075.00 331,702.50 144,817.90 07/01/2013 4,971,937.50 4,642,525.00 329,412.50 135,620.19 07/01/2014 4,966,137.50 4,636,250.00 329,887.50 128,045.97 07/01/2015 4,970,600.00 4,639,250.00 331,350.00 121,230.36 07/01/2016 4,969,837.50 4,640,225.00 329,612.50 113,668.58 07/01/2017 4,973,125.00 4,643,525.00 329,600.00 107,113.86 07/01/2018 4,974,012.50 4,643,175.00 330,837.50 101,299.85 07/01/2019 4,971,412.50 4,638,525.00 332,887.50 96,016.16 07/01/2020 4,969,237.50 4,638,925.00 330,312.50 89,736.95 07/01/2021 4,971,037.50 4,638,075.00 332,962.50 85,176.14 94,508,536.25 87,463,008.75 7,045,527.50 3,497,791.80 Savings Summary Present Value Deliv Less: Prior Refunding to 12/19/1997 Date Funds on Hand Funds on Hand Total @ 5.8880418% 04/04/2000 =(1,110,045.83) 1,195.18 (1,108,850.65) (970,773.45) (970,773.45) PV of savings from cash flow 3,497,791.80 Adjustments (970,773.45) Net PV Savings 2,527,018.35 08-Dec-97 4:47 pm Prepared by Goldman, Sachs & Co. (Finance 3.104 AEA:1997) Page 10 BOND PRICING = Alaska Energy Authority Bradley Lake Forward Refunding Bonds Power Revenue Bonds, Fourth Series Noncall Rates as of December 8, 1997 Maturity Bond Component Date Amount Rate Yield Price Serial Bonds: 07/01/2000 885,000 5.000% 5.710% 99.813 07/01/2001 1,775,000 5.000% 5.740% 99.116 07/01/2002 1,865,000 5.500% 5.770% 99.430 07/01/2003 1,970,000 5.500% 5.800% 99.115 07/01/2004 2,075,000 5.500% 5.830% 98.765 07/01/2005 2,195,000 5.500% 5.860% 98.385 ° 07/01/2006 10,000 5.500% 5.890% 97.977 07/01/2007 10,000 6.500% 5.920% 103.364 07/01/2008 10,000 6.500% 6.000% 103.201 07/01/2009 15,000 6.500% 6.080% 102.924 07/01/2010 15,000 6.500% 6.110% 102.924 07/01/2011 2,320,000 6.500% 6.140% 102.880 07/01/2012 2,470,000 6.500% 6.180% 102.707 07/01/2013 2,635,000 6.500% 6.190% 102.761 18,250,000 Term Bond due 2017: 07/01/2017 12,355,000 6.500% 6.190% 103.245 Term Bond due 2021: 07/01/2021 15,895,000 6.500% 6.190% 103.623 46,500,000 Dated Date 04/04/2000 Delivery Date 04/04/2000 First Coupon 07/01/2000 Par Amount 46,500,000.00 Premium 1,078,071.80 Production 47,578,071.80 102.318434% Underwriter's Discount (325,500.00) (0.700000) Purchase Price 47,252,571.80 101.618434% Accrued Interest Net Proceeds 47,252,571.80 08-Dec-97 4:47 pm Prepared by Goldman, Sachs & Co. (Finance 3.104 AEA:1997) Page 11 BOND DEBT SERVICE - Alaska Energy Authority Bradley Lake Forward Refunding Bonds Power Revenue Bonds, Fourth Series Noncall Rates as of December 8, 1997 Period Ending Principal Coupon Interest Debt Service 07/01/2000 885,000 5.000% 701,183.75 1,586, 183.75 07/01/2001 1,775,000 5.000% 2,857,200.00 4,632,200.00 07/01/2002 1,865,000 5.500% 2,768,450.00 4,633,450.00 07/01/2003 1,970,000 5.500% 2,665,875.00 4,635,875.00 07/01/2004 2,075,000 5.500% 2,557,525.00 4,632,525.00 07/01/2005 2,195,000 5.500% 2,443,400.00 4,638,400.00 07/01/2006 10,000 5.500% 2,322,675.00 2,332,675.00 . 07/01/2007 10,000 6.500% 2,322,125.00 2,332,125.00 07/01/2008 10,000 6.500% 2,321,475.00 2,331,475.00 07/01/2009 15,000 6.500% 2,320,825.00 2,335,825.00 07/01/2010 15,000 6.500% 2,319,850.00 . 2,334,850.00 07/01/2011 2,320,000 6.500% 2,318,875.00 4,638,875.00 07/01/2012 2,470,000 6.500% 2,168,075.00 4,638,075.00 07/01/2013 2,635,000 6.500% 2,007,525.00 4,642,525.00 07/01/2014 2,800,000 6.500% 1,836,250.00 4,636,250.00 07/01/2015 2,985,000 6.500% 1,654,250.00 4,639,250.00 07/01/2016 3,180,000 6.500% 1,460,225.00 4,640,225.00 07/01/2017 3,390,000 6.500% 1,253,525.00 4,643,525.00 07/01/2018 3,610,000 6.500% 1,033,175.00 4,643,175.00 07/01/2019 3,840,000 6.500% 798,525.00 4,638,525.00 07/01/2020 4,090,000 6.500% 548,925.00 4,638,925.00 07/01/2021 4,355,000 6.500% 283,075.00 4,638,075.00 46,500,000 40,963,008.75 87,463,008.75 08-Dec-97 4:47 pm Prepared by Goldman, Sachs & Co. (Finance 3.104 AEA:1997) Page 12 SUMMARY OF REFUNDING RESULTS a Alaska Energy Authority 1997 Forward Refunding Bonds Dated Date 04/06/1999 Delivery Date 04/06/1999 Arbitrage yield 5 .888042% Escrow yield 5.250000% Bond Par Amount 105 ,985 ,000.00 True Interest Cost 5.939267% Net Interest Cost 5 .841487% All-In TIC 6.002370% Average Coupon 5.982855% Average Life 12.785 . Duration 8.543 Par amount of refunded bonds 105,345, 000.00 Average coupon of refunded bonds 7.264012% Average life of refunded bonds 13.296 PV of prior debt to 12/19/1997 @ 5.888042% . 108, 109,670.98 Net PV Savings 7,791 ,954.48 Percentage savings of refunded bonds 7.396606% Percentage savings of refunding bonds 7.351941% 08-Dec-97 4:47 pm Prepared by Goldman, Sachs & Co. (Finance 3.104 AEA:1997) Page 2 Alaska Energy Authority— Bradley Lake Forward Refunding Summary of Refunding Results Rates as of December 8, 1997 Non Call % PV Savings $ PV Savings Third Series 8.91% $5,264,936 Fourth Series 5.47% $2,527,018 Total 7.40% $7,791,954 Callable % PV Savings 8.25% 4.30% 6.52% $ PV Savings $4,875,700 $1,987,617 $6,863,316 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE List of Representatives Representative Alternate Eugene N. Bjornstad Chairman Norman L. Story Vice Chairman Myles C. Yerkes Dennis V. McCrohan Stan Sieczkowski Secretary/Treasurer [eer fehle. Hank Nikkels ——— i] ——_—* Dave Calvert Michael P. Kelly Bradley Evans Wayne D. Carmony James D. Hall Ronald L. Saxton Legal Counsel Effective Date: 09/22/97 Revised Date: 11/05/97 h/all/sdean/bradley lake pmc meeting/members listing.doc Utility Chugach Electric Association 5601 Minnesota Drive Anchorage, Alaska 99501 Phone: 563-7494 Fax: 562-6994 Homer Electric Association 3877 Lake Street Homer, Alaska 99603 Phone: 235-8167 Fax: 235-3323 AIDEA/AEA 480 West Tudor Road Anchorage, Alaska 99503-6690 Phone: 269-3000 Fax: 269-3044 Municipal Light & Power 1200 E. First Avenue Anchorage, Alaska 99501 Phone: 279-7671 Fax: 263-5204 City of Seward P.O. Box 167 (5th and Adams) Seward, Alaska 99664 Phone: 224-4071 Fax: 224-2621 Golden Valley Electric Association P.O. Box 71249 (758 Illinois) Fairbanks, Alaska 99707 Phone: 452-1151 Fax: 451-5633 Matanuska Electric Association P.O. Box 2929 (163 Industrial Way) Palmer, Alaska 99645-2929 Phone: 745-9211 Fax: 745-9368 Ater Wynne Hewitt Dodson Skerritt 222 S.W. Columbia, Suite 1800 Portland, Oregon 97201-6618 Ph: (503) 226-1191 Fax: 226-0079 WY ae Municipality of Anchorage Municipal Light & aera 1200 East First Avenue Anchorage, Alaska 99501-1685 Telephone: (907) 279-7671, Telecopiers: (907) 263-5804, 277-9272 December 8, 1997 Bradley Lake Hydroelectric Project Project Management Committee Re: Municipality of Anchorage dba Municipal Light & Power PMC Representative Effective immediately, and until further notice, the Representative of the Municipality of Anchorage, dba Municipal Light & Power on the Bradley Lake Project Management Committee shall be Meera Kohler. Her mailing address is 1200 East First Avenue, Anchorage, Alaska 99501, and her phone number is (907) 263-5202. Sincerely, Generation Manager HN:sc Putting Energy into Anchorage for Over 60 years 12/01/97_ MON 15:49 FAX 562 6994 CEA EXECUTIVE Moo1 TO: Shawna Dean 269-3044 FACSIMILE TRANSMITTAL SHEET From: Dianne - This is a copy of my fax transmittal form. You can use the numbers off this. CRUGACN ese sssocusen.ne 5601 Minnesota Drive P.O. Box 196300 Anchorage, Alaska 99519-6300 Phone: 907-563-7494 DATE: Deceml , 1997 _, (6) v Wate ro) TO: Bradley ake Utility Managers: Norm Story, HEA -—~ Fax: 907-235-3323 Ph: 907-235-3301 Mike Kelly, GVEA~ Fax: 907-451-5633 Ph: 907-452-1151 Meera Kohler, ML&P ~~ Fax: 907-263-5204 Ph: 907-263-5202 Wayne Carmony, MEA Fax: 907-745-9368 Ph: 907-745-9211 Dave Calvert, SES —~ Fax: 907-224-4085 Ph: 907-224-4071 Bob Hufman, AEG&T a Fax: 907-474-0536 Ph: 907-474-0549 Counsel: Ron Saxton-Ater Wynne Fax: 503-226-0079 Ph: 503-226-1191 FA: Bill Pinakiewicz-Smith Barney .— Fax: 212-816-7949 Ph: 212-816-7762 LOCATION: Gene Bjornstad SUBJECT; r ALASKA INDUSTRIAL DEVELOPMENT e_ AND EXPORT AUTHORITY {= ALASKA @@m = ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 ALASKA ENERGY AUTHORITY BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE DECEMBER 9, 1997 EXCERPT FROM UNAPPROVED MINUTES 9. OLD BUSINESS B. Budget Subcommittee Bond Refunding Mr. Griffith gave a brief update regarding the Bradley Lake Hydroelectric Project Forward Delivery Refunding Bonds. He stated Senate Bill 1483, which was introduced by Senator Murkowski, has caused some concern on the part of Goldman Sachs. The bill has soft grandfathering language for tax-exempt refundings on bonds of this nature. He also stated that delaying the pricing until the issue was resolved would not be detrimental. Mr. Saxton said that one of the effects of Senate Bill 1483 would be that if utilities are to compete they would no longer have the advantages of being able to issue tax-exempt debt. The bill, as structured, would make this deal a risk to Goldman Sachs and they are not comfortable with that risk. Mr. Girffith stated the purpose of the bill is not aimed at bonds like these, but unfortunately they could possibly get swept up in it. All of the rest of the documentation appears to be in order. There are some options, but they will not be discussed until we know the kind of problem we will have if the bill passes. Discussions ensued regarding Senate Bill 1483 and the effect it may have on the Bradley Refunding. Mr. Saxton stated the Approving Resolution needs to be approved at this meeting. He stated the Settlement Agreement and the Agreement to Support the Forward Refunding are part of the Approving Resolution. Mr. Vassar stated his office needs the signed documents by December 10, 1997. Mr. Bjornstad polled the members as to the status of the Settlement Agreement and the Agreement to Support the Forward Refunding. It was unanimously stated that all members had approved both Agreements. Excerpt from Unapproved Minutes December 9, 1997 Meeting Page 2 MOTION: Mr. Calvert moved to approve the Approving Resolution of the Bradley Lake Hydroelectric Project and that such resolution be delivered by the Bradley Lake PMC Chairman to the Alaska Energy Authority once it is confirmed and ratified by the Project Management Committee by appropriate resolution at a future BPMC meeting. Seconded by Ms. Kohler. Mr. Saxton explained the Confirming Resolution for the members of the committee. There being no further discussion, a roll call vote was requested. Upon roll call vote, the motion passed unanimously. Mr. Saxton said that on page two of the Approving Resolution the date should read April 6, 1999. Mr. Bloom briefed the committee regarding the tax-exempt issue and also the current market situation. He said the savings, using December 8, 1997 market conditions, was $7.7 million present value, which works out on a percentage basis to 7.4%. Hearing no objection, Chairman Bjornstad recessed the meeting to December 10, 1997, at 10:00 a.m. oun VM i! Zl Secretary Corse VA ae Chain Bradley Lake PROJECT MANAGEMENT COMMITTEE MEETING “Teescley Lee. 9 1997 ate ALDEA = Large Cotbed Yin. (Location) PLEASE SIGN IN REPRESENTING 92Q2\IT9884 eee Holmiek ALASKA INDUSTRIAL DEVELOPMENT > AND EXPORT AUTHORITY f= ALASKA i = ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 10. a. 12. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA Tuesday, December 9, 1997 — 9:00 a.m. Alaska Industrial Development and Export Authority Board Room — 480 West Tudor Road CALL TO ORDER“ Bjomstad ROLL CALL (for Committee members) a PUBLIC ROLL CALL (for all others present) vO PUBLIC COMMENT ~~ AGENDA COMMENTS ll APPROVAL OF MEETING MINUTES — November 5, 1997 a BUDGET SUBCOMMITTEE REPORT, OPERATION AND DISPATCH SUBCOMMITTEE REPORT | McCrohan > 4< Key OLD BUSINESS A. Spinning Reserves Update O- We rept Lovas B. Budget Subcommittee Bond Refunding _~~ Griffith C. Settlement Agreements ,—— McCrohan NEW BUSINESS _ — COMMITTEE COMMENTS A. Next Meeting Date ~~ Bjornstad ADJOURNMENT Geb the 3 ‘eg See _~ Stas Se Tif es eee TS ee pan + = VGA pesde ee ie IW S25$10 Awa other (oe onde bible hell AU. Dyn Loeb, LEA Shaw Sktehwski ACA LZ ven. We x<ee. ZA Ey am CEA a Ak Ge ye L MLE Se Pte lambridy, fEA = Lt 5 SAr, L4A, (THB 3 Lt ee, a Cilhers, —e ¢G. Da ne felmich, VA ers Sow Car KH, CEA Row SAP ing tL, Aety Boh Hupp ee mar, AEC > tM Agenda Item No. CITY OF SEWARD MATANUSKA ELEC ASSOC CHUGACH ELEC ASSOC HOMER ELEC ASSOC GOLDEN VAL ELEC ASSOC MUNI LIGHT & POWER ALASKA ENERGY AUTHORITY A=4+ OVER 51% DATE: j2Q-F-UF BRADLEY PMC VOTING l , #4 4, , et vy a = ae wus coh ASS 14% [(Z7L_] AL 30% [> _] Lae nw (ZT. WT m ET] wt Pa oe ETI) ETI CL [= (ist | 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 project, 2) Adoption of budget of annual project costs. VOTE(93Q3/BC5272) 3) Establishment of FY estimated annual payment obligation and schedule of each purchaser. 4) Determination of annual project costs after each FY. 5) Evaluation of necessity for and scheduling of required project work. 6) Determination of appropriate amount of insurance. 7) Adoption of additional minimum funding amounts for renewal and contingency reserve fund above that required by bond resolution. 8) Selection among alternate methods that involve AEA for funding required project work. 9) Adoption or amendment of procedural committee rules (except dispute resolution). 10) Adoption of project maintenance schedules. 11) Determination of rules, procedures and accounts necessary to manage project when no bonds outstanding. 12) Evaluation and approval of optional project work and compensation for such work. 13) Application of insurance claims proceeds not governed by bond resolution. 14) Approval of procedures and any individual utility agreements relating to electric power reserves for project. 15) Approval of consultants. VOTING METHOD C: Unanimous vote by all (including AEA) VOTING METHOD D: Majority vote (including AEA) Election of Officers Agenda Item No. CITY OF SEWARD MATANUSKA ELEC ASSOC CHUGACH ELEC ASSOC HOMER ELEC ASSOC GOLDEN VAL ELEC ASSOC MUNI LIGHT & POWER ALASKA ENERGY AUTHORITY A=4+ OVER 51% BRADLEY PMC VOTING 01% 14% 30% 12% 17% 26% B=AEA CONCUR With A DATE: YES NO ABS YES NO ABS C = UNANIMOUS D = MAJORITY VOTING METHOD A: Requiring four yeas with 51% of utilities, with no AEA vote: 1) Procedures for scheduling, production and dispatch of project power. 2) Establishment of procedures for use of each purchaser's water allocation (AEA assent required for license requirements). 3) Selection among alternative methods that do not involve AEA for funding required project work. VOTING METHOD B: Requiring 4 yeas with 51% of utilities and AEA concurrence: 1) Arranging operation and maintenance of project. 2) Adoption of budget of annual project costs. VOTE(93Q3/BC5272) 3) 4) 5) ) 7) 8) 9) Establishment of FY estimated annual payment obligation and schedule of each purchaser. Determination of annual project costs after each FY. Evaluation of necessity for and scheduling of required project work. Determination of appropriate amount of insurance. Adoption of additional minimum funding amounts for renewal and contingency reserve fund above that required by bond resolution. Selection among alternate methods that involve AEA for funding required project work. Adoption or amendment of procedural committee rules (except dispute resolution). 10) Adoption of project maintenance schedules. 11) 12) 13) 14) 15) Determination of rules, procedures and accounts necessary to manage project when no bonds outstanding. Evaluation and approval of optional project work and compensation for such work. Application of insurance claims proceeds not governed by bond resolution. Approval of procedures and any individual utility agreements relating to electric power reserves for project. Approval of consultants. VOTING METHOD C: Unanimous vote by all (including AEA) VOTING METHOD D: Majority vote (including AEA) Election of Officers Agenda Item No. CITY OF SEWARD MATANUSKA ELEC ASSOC CHUGACH ELEC ASSOC HOMER ELEC ASSOC GOLDEN VAL ELEC ASSOC MUNI LIGHT & POWER ALASKA ENERGY AUTHORITY A=4+ OVER 51% DATE: BRADLEY PMC VOTING vs 6 At vis No ass ea 01% aa fT] ] 14% | 3% [TT] CITE) CLI mé¢ Lh.) EEE] ETT] 17% (2te i) | 6S) 6 CEES 2% fal — |] Ey CL] l 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 project. 2) Adoption of budget of annual project costs. VOTE(93Q3/BC5272) 3) 4) 5) 6) 7) 8) 9) Establishment of FY estimated annual payment obligation and schedule of each purchaser. Determination of annual project costs after each FY. Evaluation of necessity for and scheduling of required project work. Determination of appropriate amount of insurance. Adoption of additional minimum funding amounts for renewal and contingency reserve fund above that required by bond resolution. Selection among alternate methods that involve AEA for funding required project work. Adoption or amendment of procedural committee rules (except dispute resolution). 10) Adoption of project maintenance schedules. 11) 12) 13) 14) 15) Determination of rules, procedures and accounts necessary to manage project when no bonds outstanding. Evaluation and approval of optional project work and compensation for such work. Application of insurance claims proceeds not governed by bond resolution. Approval of procedures and any individual utility agreements relating to electric power reserves for project. Approval of consultants. VOTING METHOD C: Unanimous vote by all (including AEA) VOTING METHOD D: Majority vote (including AEA) Election of Officers . ‘ ALASKA INDUSTRIAL DEVELOPMENT =~ AND EXPORT AUTHORITY => ALASKA im ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 Facsimile Transmittal TO: Please See Attached Distribution Sheet COMPANY: Fax # : ( ) From:__ Shauna Dean Date: December 3, 1997 Time: Number of pages including cover page: Transmittal Contents: Cover Sheet Distribution Sheet Meeting Notice Teleconference Instructions Comments: —-Please note the call-in instructions on the attached sheet, Thank you —- Shauna. Notice: This facsimile may contain confidential information that is being transmitted to and is intended only for the use of the recipient named above. Reading, disclosure, discussion, dissemination, distribution, or copying of this information by anyone other than the named recipient or his or her employees or agents is strictly prohibited. If you have received this facsimile in error, please immediately destroy it and notify us by telephone, (907) 269-3000. Distribution List: Eugene Bjornstad, CEA Meera Kohler, ML&P Norm Story, HEA Mike Kelly, GVEA Wayne Carmony, MEA Dave Calvert, SES Bob Hufman, AEG&T Bill Pinakiewicz, Smith Barney Ron Saxton, Ater Wynne Hewitt Dodson & Skerritt Cindy Cartledge, Wohlforth, Argetsinger, Johnson & Brecht Ken Vassar, Wohlforth, Argetsinger, Johnson & Brecht Paul Bloom, Goldman, Sachs & Co. Jeff Brown, Goldman, Sachs & Co. NOTICE Bradley Lake PMC Meetings are as follows: Regular Meeting Tuesday, December 9, 1997 at 9:00 a.m. Location: Alaska Industrial Development and Export Authority 480 West Tudor Road Large Conference Room Teleconference Meeting Wednesday, December 10, 1997 at 10:00 a.m. Location: Alaska Industrial Development and Export Authority 480 West Tudor Road Large Conference Room (This location is where the public can come to attend the teleconference.) NOTICE Instructions to connect into the Bradley Lake PMC teleconference scheduled for Wednesday, December 10, 1997, at 10:00 a.m. are as follows: Dial 1-800-315-6338 Voice Prompt will request a code — enter 3005 This will connect you to the teleconference. 0000000000001 00000000 000000 COCO OOO CCC COCO NOOO OOOO COCO CCC CCK KOO x P. 01 x x “ TRANSACTION REPORT x x i TT DEC-03-97 WED 04:46 PM x co : x x BROADCAST x k ; K x DATE START RECEIVER TX TIME PAGES TYPE NOTE M# DP x x K x DEC-03 04:15 PM 95626994 4’ 10" 2 SEND (M) COM E-11 020 x x 04:20 PM 919072353323 53” 4 SEND (M) OK 020 x x 04:21 PM 919074515633 53” 4 SEND (M) OK 020 x x 04:22 PM 92635204 2’ 08” 4 SEND (M) OK 020 x x 04:43 PM 919077459368 53” 4 SEND (M) OK 020 x x 04:26 PM 919072244085 5b” 4 SEND (M) OK 020 X x 04:28 PM 919074740536 52” 4 SEND (M) OK 020 x x 04:34 PM 915032260079 2’ 06” 4 SEND ( M) OK 020 k x 04:45 PM 912128167949 50” 4 SEND (M) OK 020 x x 04:31 PM 914153937653 1/15” 4 SEND (M) OK 020 X X X K xX x TOTAL 14M 55S PAGES: 38 x x JOO OOOO OOOO OOO 00 0 00 00 (000 00 0000 0000 0 0 200 2 RIE III RII RK ALASKA INDUSTRIAL DEVELOPMENT ; = * AND EXPORT AUTHORITY / => ALASKA MK ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 Facsimile Transmittal TO: Please See Attached Distribution Sheet COMPANY: Fax # : ( ) From: Shauna_Dean Date: December 3, 1997 Time: Number of pages including cover page: 2010000010000000000100000000000 00000100000 CO OK OOOO OOK KOK KKK KOK KKK x POl x K ~ TRANSACTION REPORT x ee: oe eee DEC-04-97 THU 08:30 AN x x v . x x SEND (M) x x ¢ x x DATE START — RECEIVER TX TIME PAGES TYPE NOTE Mt DP x X x X — DEC-04 08:29 AM 95626994 59" 4 SEND (M) OK 024 x X x x x x TOTAL 59S PAGES: 4 K x x XOX KKK KKK KKK KOK KK KKK KOK KOK KK KK KKK KKK KKK KOK KK KK KK KK KKK KOK KOK KKK KKK KKK KKK KOKORO KOK ALASKA INDUSTRIAL DEVELOPMENT & AND EXPORT AUTHORITY / => ALASKA AR =ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 Facsimile Transmittal TO: Please See Attached Distribution Sheet COMPANY: Fax #: ( ) From: Shauna Dean Date: December 3, 1997 Time: Number of pages including cover page: ALASKA INDUSTRIAL DEVELOPMENT = * AND EXPORT AUTHORITY /= ALASKA @e™ =ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA Tuesday, December 9, 1997 — 9:00 a.m. Alaska Industrial Development and Export Authority Board Room — 480 West Tudor Road 1. CALL TO ORDER Bjornstad 2. ROLL CALL (for Committee members) 3. PUBLIC ROLL CALL (for all others present) 4. PUBLIC COMMENT 5. AGENDA COMMENTS 6. APPROVAL OF MEETING MINUTES — November 5, 1997 te BUDGET SUBCOMMITTEE REPORT 8. OPERATION AND DISPATCH SUBCOMMITTEE REPORT McCrohan 9. OLD BUSINESS A. Spinning Reserves Update Lovas B. Budget Subcommittee Bond Refunding Griffith C. Settlement Agreements McCrohan 10. NEW BUSINESS Aide COMMITTEE COMMENTS A. Next Meeting Date Bjornstad 12: ADJOURNMENT ALASKA INDUSTRIAL DEVELOPMENT > AND EXPORT AUTHORITY {= ALASKA @@ =ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA TELECONFERENCE Wednesday, December 10, 1997 — 10:00 a.m. Alaska Industrial Development and Export Authority Board Room — 480 West Tudor Road 1. CALL TO ORDER Bjornstad 2. ROLL CALL (for Committee members) 3. PUBLIC ROLL CALL (for all others present) 4. PUBLIC COMMENT 5. AGENDA COMMENTS 6. NEW BUSINESS A. Bond Pricing Griffith 7. COMMITTEE COMMENTS A. Next Meeting Date Bjornstad 8. ADJOURNMENT NOTICE Bradley Lake PMC Meetings are as follows: Reqular Meeting Tuesday, December 9, 1997 at 9:00 a.m. Location: Alaska Industrial Development and Export Authority 480 West Tudor Road Large Conference Room Teleconference Meeting Wednesday, December 10, 1997 at 10:00 a.m. Location: Alaska Industrial Development and Export Authority 480 West Tudor Road Large Conference Room (This location is where the public can come to attend the teleconference.) 10. 11. 12. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE fe MEETING AGENDA Tuesday, December 9, 1997 — 9:00 a.m. Alaska Industrial Development and Export Authority Board Room — 480 West Tudor Road CALL TO ORDER Bjornstad ROLL CALL (for Committee members) PUBLIC ROLL CALL (for all others present) PUBLIC COMMENT AGENDA COMMENTS APPROVAL OF MEETING MINUTES — November 5, 1997 BUDGET SUBCOMMITTEE REPORT OPERATION AND DISPATCH SUBCOMMITTEE REPORT McCrohan OLD BUSINESS A. Spinning Reserves Update Lovas B. Budget Subcommittee Bond Refunding Griffith C. Settlement Agreements McCrohan NEW BUSINESS COMMITTEE COMMENTS A. Next Meeting Date Bjornstad ADJOURNMENT BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA TELECONFERENCE Wednesday, December 10, 1997 — 10:00 a.m. Alaska Industrial Development and Export Authority Board Room — 480 West Tudor Road CALL TO ORDER Bjornstad ROLL CALL (for Committee members) PUBLIC ROLL CALL (for all others present) PUBLIC COMMENT AGENDA COMMENTS NEW BUSINESS A. Bond Pricing Griffith COMMITTEE COMMENTS A. Next Meeting Date Bjornstad ADJOURNMENT XOOOOOOOOOO O00 000.00.) 0 000 OOOO 0000000000000 0 00000000 COOK x ~ P, 01 x K > TRANSACTION REPORT x K ° ———— DEC-04-97 THU 03:37 PH x x x x SEND (M) ; 7 x x DATE START RECEIVER TX TIME PAGES TYPE NOTE Mt DP x x eee X _DEC-04 03:36 PM 95626994 55" 3 SEND (M) OK 042 x x x x x x TOTAL 55S PAGES: 3 x x x OOOO OOOO OOOO OOOO OOOO 011K KKK KKK KKK KK OK KKK KK MK = ENERGY AUTHORITY ALASKA INDUSTRIAL DEVELOPMENT * AND EXPORT AUTHORITY => ALASKA es —— A THORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 Facsimile Transmittal 10: [ae ornstod COMPANY: Chugach Llatnc. Aosicjation~ Fax#:(W7)_ 562-699 From: feast LM nfo Yast Dhan “ Date: Cle yn hee ay Time: 3230 pr. Number of pages including cover page: 3 a . ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY /= ALASKA im ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 Facsimile Transmittal 2 __, ; ae TO: f LENE f 1) DYUSTF Ond From: Date: Time: 3:30 pr: Number of pages including cover page: nD Transmittal Contents: Comments: , he nee /Liy-tx for Lez fee A ; jae A Og Payee ZL Corner Z , Z anti Notice: This facsimile may contain confidential information that is being transmitted to and is intended only for the use of the recipient named above. Reading, disclosure, discussion, dissemination, distribution, or copying of this information by anyone other than the named recipient or his or her employees or agents is strictly prohibited. If you have received this facsimile in error, please immediately destroy it and notify us by telephone, (907) 269-3000. BRADLE: LAKE PROJECT MANAGEMENT CummITTEE MEETING MINUTES Board Room Alaska Industrial Development and Export Authority 480 West Tudor Road Anchorage, Alaska Regular Meeting Wednesday, November 5, 1997 10:00 a.m. 1. CALL TO ORDER Chairman Eugene Bjornstad called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:00 a.m. on Wednesday, November 5, 1997, in the Board Room of Alaska Industrial Development and Export Authority, Anchorage, Alaska, to conduct the business of the Committee per the agenda and public notice. 2. ROLL CALL Roll was called by Shauna Dean. The following members were present, and a quorum was established: | Eugene Bjornstad, Chairman Chugach Electric Association Dave Calvert . City of Seward wo vs Wayne Carmony N Matanuska Electric Association aa Mike Kelly (Telephonic) ( Golden Valley Electric Association Norm L. Story (Telephonic) Homer Electric Association ‘Dennis McCrohan > Alaska Energy Authorit Vv 3. PUBLIC ROLL CALL Others Present: Shauna Dean, Alaska Energy Authority ~~. Hank Nikkels, Municipal Light & Power (Arrived at approximately 10:15 a.m.) Dan Helnick, Municipal Light & Power (Arrived at approximately 10:15 a.m.) John S. Cooley, Chugach Electric A/ss0~ vBrian Hickey, Chugach Electric Assec Joe Griffith, Chugach Electric 4se “Don Zoerb, ey Association Slow Yuecalle 4 | eh Bradley Lake Project management Committee Meeting Minutes Wednesday, November 5, 1997 Page 2 of 5 Others Present (Continued): Bob Hufman, AEG&T VY Don Stead, Homer Electric Association yRick Eckert, Homer Electric Association ,Ron Saxton, Purchasing Utilities ,Xen Vassar, Wohlforth, Argetsinger, Johnson & Brecht yCindy Cartledge, Wohlforth, Argetsinger, Johnson & Brecht Bill Penacavitz, Smith Barney HK ovalprip meiner, nas SOE ug gee ALORY yo v doh ember of the Public 2 Elaine McCambridge, j tati 4eEA Robert Hanson (Telephonic) 4. PUBLIC COMMENT There was no public comment. 5. AGENDA COMMENTS There being no additions or comments, the agenda was adopted by unanimous consent. 6. APPROVAL OF MEETING MINUTES - September 4 and September 22, 1997 MOTION: Mr. Calvert moved to approve the meeting minutes of September 4 and 22, 1997. Seconded by Mr. Carmony. There being no changes or additions, a voice vote was taken, and the minutes were unanimously approved as presented. 7. BUDGET SUBCOMMITTEE REPORT There was no report from the Budget Subcommittee. The Committee agreed to take up Agenda Item 9.B. next out of order. 9. OLD BUSINESS B. Budget Subcommittee Bond Refunding Report - Joe Griffith Mr. Griffith asked Mr. Saxton to provide the Committee an update on the legal issues involved in preparing the documentation for the bond refunding. He said following Mr. Saxton’s update, Mr. Bill Penacavitz, with Smith Barney, would review the financial status of the project with the Committee. Mr. Saxton reported that the work was proceeding more slowly than anticipated due to the delays in getting participants’ feedback on the documents. He said there were 10 separate documents related to the transaction and several parties involved, and the process was complex. He said they were not ready to present anything for the Committee to act upon today. Bradley Lake Project Management Committee Meeting Minutes Wednesday, November 5, 1997 Page 3 of 5 Mr. Griffith introduced Mr. Bill Penacavitz, the financial consultant who had been hired as the financial advisor for the power purchasers. Mr. Penacavitz provided an overview of the status of the financial aspect of the bond refunding as well as the current status of the market. le 2 i WUw Mr. Penacavitz said thatVhad spent some tjime reviewing the structure and economic assumptions underlying the transaction with Goldman Sachs. He said while the outlook was favorable, ere were still some outstanding issues which will require further dis¢ussion with Goldman Sachs. Mr. Penacavitz noted that the markets had been volatile recently but had more or less returned to normal and waS reasonably stable at this time. He said the downside risk was then-tikety-greater than the upside risk in going forward with the transaction at this time. He urged the Committee that the documentatiion process be completed as quickly as possible. Mr. Penacavitz responded to questions, and discussion was heard. saa? tan Ale Mr. Griffith recommended that action on this item be tabled until further notice. The Chair recessed the meeting at 10:15 a.m., and the meeting was reconvened following a 10-minute break. Chair Bjornstad said he had received a request from Mr. McCrohan to have Mr. Vassar outline the sequence of events with respect to the bond refunding. Mr. Vassar provided the Committee an outline of the steps that needed to be taken to bring the bond refunding process to closure: Ye i, A -ty pe agrees to with, ar Fangert (1) That the PMC ast6pt_the resolution prepared by Atér Wynne which authorizes an the concept of the forward purchase format of the bond issue, requests the AEA to proceed, and which would appoint an agent to act on behalf of the PMC to review the final terms and provide a certificate to this effect. (2) Finalize and have every party to the Power Sales Agreement execute the Settlement Agreement. Also, following complete execution of the Settlement Agreement, each utility’s attorney must provide an opinion stating that it is a valid, binding obligation of the utility. Mr. Vassar said the opinion form had been prepared, and Ater Wynne had delivered a to each of the utilities. ok a (3) Finalize and execute phodyormea Constante Conteact> Simultane- ously, the certificate from the agent appointed by the PMC in No. (1) above should be provided. Mr. Vassar said the interest rate which would apply to the bonds would be determined upon execution of the forward purchase contract. (4) Prepare and effectuate the closing of the transaction, currently scheduled for December 19, 1997. There was a consensus of the Committee that this item be tabled. * ot TF) Nanch, »\) ‘ Bradley Lake Project -_.nagement Committee Meeting Minutes Wednesday, November 5, 1997 Page 4 of 5 8. OPERATION AND DISPATCH SUBCOMMITTEE REPORT Mr. Sieczkowski reported that the O&D Subcommittee had met the previous day, and the following topics were discussed: The fish water bypass flow monitoring and SCADA input for the North Fork Bradley River had been installed. Mr. Sieczkowski said when the river is not frozen over, the operator can monitor and set the releases from the dam to offset the side flows, which should reduce the release water from the dam, providing more for generation. He noted that in the near future, Homer, Chugach, and AEA would discuss improvement of the real- time monitoring and reaction to the releases, specifically when there is a reduction. Mr. Sieczkowski said the State agencies and FERC have been advised of the variations during the last six months and& have Xbeen advised regarding potential modifications to reduce the variances. He noted that a meeting would be scheduled with the agencies to coordinate the flows, and also to coordinate their studies, with the ultimate goal being to reduce the flows. Mr. Sieczkowski said the O&D Subcommittee was next scheduled to meet at Chugach Electric Association on January 14, 1998, at 9:00 a.m. Mr. Cooley reported that both units have been operating with no problem. Mr. Stead reported that all maintenance was current, and there were no problems to report. Mr. Hickey gave an overview of the status of the ongoing instability study. He said Electric Power Systems had given a presentation the previous day on the status of the project, and they had delivered the updated governor model for implementation by the Railbelt utilities in eir(PSSE)program. The scheduled completion date for this project is December 8, 1997. Mr. Hickey noted that this was significantly behind schedule of the original projected completion date of August 30th. He said the reason for this was because the vendor had _ severely underestimated the benchmarking of the model against reality. He said although the scheduled date for completion was December 8th, he did not expect to receive the contractor’s report until after the first of the year. 9. OLD BUSINESS A. Spinning Reserves Update Mr. Griffith reported no change on the spinning reserves since the last meeting. B. Budget Subcommittee Bond Refunding Report - Joe Griffith This item was taken up earlier in the meeting. aagement Committee Meeting Minutes . Page 5 of 5 - "Bradley Lake Project Wednesday, November 5, 1997 Cs Construction Fund Agreement This item was tabled. 10. NEW BUSINESS There was no New Business. 11. COMMITTEE COMMENTS There were no Committee member comments. As Next Meeting Date It was the consensus of the Committee that the next meeting of the Bradley Lake Hydroelectric Project Management Committee be at the call of the Chair. 12. ADJOURNMENT Seconded by Mr. Calvert. MOTION: Mr. Carmony moved to adjourn. There being no objection and no further business of the Committee, the meeting was recessed at 10:30 a.m. Adjourned BY: Eugene Bjornstad, Chairman ATTEST: Alaska Energy Authority, Secretary SD:E; cutary/csc 1815bpine . min 11/20/ J