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HomeMy WebLinkAboutBradley Lake PMC Meeting @ Chugach Friday, March 20, 1998 2BS Bradley Lake PROJECT MANAGEMENT COMMITTEE MEETING Wereh-O 1998 ; .. (Date) Chugech_ ve Bb nab Rem: (Location) PLEASE SIGN IN REPRESENTING [22 92Q2\IT9884 : ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY /= ALASKA mq 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. FrounaV Me Coho Secretary ALASKA INDUSTRIAL DEVELOPMENT > aiits EXPO RTACTTIORETY [= ALASKA i =ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 ALASKA ENERGY AUTHORITY BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE DECEMBER 10, 1997 EXCERPT FROM UNAPPROVED MINUTES 6. NEW BUSINESS A. Bond Pricing Mr. Griffith briefed the committee regarding phone conversations with Senator Murkowski’s legislative director, Alexander Polanski. He stated Mr. Polanski will be drafting up a letter for Senator Murkowski’s signature clarifying the issue on Senate Bill 1483. He requested the meeting be recessed to December 12, 1997 at 10:00 a.m. Hearing no objection, Chairman Bjornstad recessed the meeting to December 12, 1997 at 10:00 a.m. Fron wig VM phn Secretary 2 ALASKA INDUSTRIAL DEVELOPMENT 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 12, 1997 EXCERPT FROM UNAPPROVED MINUTES 6. NEW BUSINESS A. Bond Pricing Mr. Laufer said a change is needed in the Forward Refunding Bond Purchase Agreement that states that opinion letters from counsel to the individual utilities’ counsel will be received sometime before the closing scheduled for January 1998. There will also be a change to the Confirming Resolution. In the second Whereas provision it should read, “WWHEREAS, the Alaska Energy Authority (“Authority”) intends to enter into the Forward Delivery Bond Purchase Agreement with Goldman Sachs & Co. and agreeing to interest costs on Refunding Bonds pursuant to such Agreement; and.” Mr. Bloom briefed the committee on the current market and the present value savings on the two refunding series combined. The two series combined present value savings was just over $8.5 million; the third series was approximately $5.3 million; and the fourth series was approximately $3.2 million. Discussions ensued regarding changes to the Confirming Resolution. Mr. Saxton read the Confirming Resolution in its entirety into record: “Confirming Resolution of the Bradley Lake Project Management Committee Relating to Forward Bond Purchase Agreement. Whereas, the Bradley Lake Project Management Committee adopted the Approving Resolution of Bradley Lake Hydroelectric Project, Project Management Committee on December 9, 1997 (‘Approving Resolution”); and Whereas, the Alaska Energy Authority (“Authority”) intends to enter into the Forward Delivery Bond Purchase Agreement with Goldman Sachs & Co. agreeing to interest costs on Refunding Bonds pursuant to such Agreement; and Whereas, the purpose of this resolution is to confirm and ratify the Approving Resolution and the actions to be taken by the Authority to execute the Forward Bond Purchase Agreement; Excerpt from Unapproved Minutes December 12, 1997 Meeting Page 2 Now, Therefore, Be It Resolved by the Bradley Lake Project Management Committee that the actions to be taken by the Authority to execute the Forward Bond Purchase Agreement with Goldman Sachs & Co. are approved, confirmed, and ratified. Adopted this 12" day of December, 1997.” MOTION: Mr. Norm Story moved to approve the Confirming Resolution as so stated by Mr. Ron Saxton. Seconded by Ms. Meera Kohler. There being no discussion, a roll call vote was requested. Upon roll call vote, the motion passed unanimously. Hearing no objection, Chairman Bjornstad adjourned the meeting at 10:20 a.m. Pou wn vite Cor Secretary ‘ . 4 iw 4); Chey eme: itte The Bradley lake Project Management Committee (BPMC) hereby authorizes the Bradley Lake O&D Committee to complete phases I ,II and III of the attached action plan for “Correction of the Bradley Lake Project Instability and Control Problems. Funds in an amount not to exceed $ 145,000 are to be allocated to these phases of the project. These funds are to be dedicated to the project from the remaining Bradley Lake Construction Funds. The O&D committee will provide regular interim reports to the BPMC of their progress in resolving this issue. Upon successful completion of phases I, II and III, the Bradley O&D committee will return to the BPMC with their findings and a revised action plan detailing the steps required to complete the remaining tasks. ion of The e ility ani Since its initial operation the Bradley Project has participated in numerous system disturbances in which the project has displayed unstable control action. Furthermore, during several system disturbances the project has not responded, in any measurable way, severe underfrequency conditions. The specifics of these events are detailed in the attached Bradley Governor Documentation Report. The following is an action plan to systematically isolate and resolve Bradley Project control problems. I: Analyze all data from the historical instability events and categorize by Mode of Oscillation, Governor Control Mode, and System Configuration.. Il. Resolve the governor instability problem. Without resolution of the Project instability problem meaningful control improvements cannot be made. a. Obtain or develop an accurate Bradley Governor Model, bench mark the model against both known instability cases and steady state boundary cases. coat Ds Evaluate the effect of speed reference changes and Deflector delay times on the model. PaiC: Verify the ability of these specific problems to create instability in the unit. if 4. Contract with Woodward to make changes to the Governor to correct the unstable at Rad control parameters. rt Ce \ e. Recreate the instability conditions and confirm that the unit is no longer unstable. fe Optimize existing Governor control settings, and verify against benchmarked model. Ill. Resolve the exciter model discrepancies. Fuji model verses standard SCRX model. a. Research PTI and SWEC records for documentation of exciter model. b. Forward documentation to FUJI with request for verification of model. IV VI Vil. Vill. Review coordination of the Power System Stabilizer Settings and the Power Oscillation Damper settings. a. Research and Document PTI’s PSS settings methodology. b. Research and Document ABB’s POD settings methodology c. Verify the POD/PSS Models, bench mark against actual events. Investigate and perform a proof of concept study on each of the following governor control improvements. a. Automatic trip to six needle mode on under frequency. b. Underfrequency trip to Deflector mode with increased bias. ic Over frequency trip to Deflector mode with increased bias. d. Suspension of the 32 second AGC time delay, and increased AGC control Bradley during disturbances both islanded and interconnected. e. External control of Bradley during system disturbances both islanded and interconnected either by the new Joint SCADA system or a local PLC based device. f. The ability to change PID control constants based on external system conditions, for example islanding, unit trips, BES/SMES on or off line. g- Rate of Change underfrequency loadshed for the Kenai. h. SCADA armed underfrequency loadshed, based on actual Kenai Import/Export and Generation status. Implement Viable/ cost effective control improvements. Review the limiting cases of the various operating studies to determine the effect of governor/exciter modifications on prescribed plant limitations. a. Kenai Underfrequency loadshed study, minimum generation levels. b. Kenai Import/Export Limits and Load shedding. c. Load Acceptance Study. d. Bradley Final Operating Study. Performance test and document the Project x & x March 18, 1998 Revised Action Plan For Correction of The Bradley Lake Project Instability and Control] Problems Since its initial operation, the Bradley Project has participated in numerous system disturbances in which the project has displayed unstable control action. Furthermore, during several system disturbances the project has not responded, in any measurable way, severe underfrequency conditions. The specifics of these events are detailed in the attached Bradley Governor Documentation Report. The following is an action plan to systematically isolate and resolve Bradley Project control problems. Il. Resolve the governor instability problem. Without resolution of the Project instability problem meaningful control improvements cannot be made. Obtain or develop an accurate Bradley Governor Model, benchmark the model against both known instability cases and steady state boundary cases. : Evaluate the effect of bees reference changes ent D _ model | ctor delay times on the Verify the ability of these specific problems to create instability in the unit. d. Contract with Woodward to make changes to the Governor to correct the unstable control parameters. e. Recreate the instability conditions and confirm that the unit is no longer unstable. f. Optimize existing Governor control settings, and verify against benchmarked model. required based on III-a. Research and Document PTI’s PSS settings methodology. a IV. Additional testing and data collection required to complete item II- d, e and f. a. Correct and document algorithms within the PSS/E model to allow benchmarking and control response analysis of the Bradley Lake model. Develop a written machine testing plan to quantify the variables which lead to plant instability. Install additional dynamic systems monitoring equipment at the plant to collect data on the instability variables. Complete machine testing, analyze results, perform additional benchmarking. 4V.V. Review coordination of the Power System Stabilizer Settings and the Power Oscillation Damper settings. bea. eb. Research and document ABB’s POD settings methodology. Verify the POD/PSS Models, benchmark against actual events. XVI. Investigate and perform a proof of concept study on each of the following governor control improvements. a. b. Automatic trip to six needle mode on underfrequency. Underfrequency trip to Deflector mode with increased bias. Over frequency trip to Deflector mode with increased bias. Suspension of the 32 second AGC time delay, and increased AGC control Bradley during disturbances both islanded and interconnected. External control of Bradley during system disturbances both islanded and interconnected either by the new joint SCADA system or a local PLC based device. The ability to change PID control constants based on external system conditions; for example: islanding, unit trips, BES/SMES on or off line. Rate of change underfrequency loadshed for the Kenai. SCADA armed underfrequency loadshed, based on actual Kenai Import/Export and Generation status. EVIL. Implement viable/cost effective control improvements. ME-VIII. Review the limiting cases of the various operating studies to determine the effect of governor/exciter modifications on prescribed plant limitations. a. Kenai underfrequency loadshed study, minimum generation levels. b. Kenai Import/Export Limits and Loadshedding. cy Load Acceptance Study. d. Bradley Final Operating Study. VHEIX. Performance test and document the Project. Motions Recommended by the Bradley O&D Subcommittee for Action by the Bradley Lake Project Management Committee at the March 20, 1998 Meeting Recommendation One Move to authorize the Bradley Lake O&D Subcommittee to issue contracts in the amounts listed. 1) Not to exceed $43,600 to Electric Power Systems Inc., to correct algorithms in the PSS/E which prevent the accurate modeling of the Railbelt power system during instability and control response events involving the Bradley Lake project and to provide technical programing assistance. 2) Not to exceed $40,000 to fund machine testing and instrumentation consultation and assistance from Fuji Electric, Stone and Webster Engineering, Woodward Governor, and others. All expenditures to be funded from the remaining project construction funds. Recommendation Two Move to approve that the installation of system monitoring equipment, originally approved for installation at Soldotna and Daves Creek, be installed at Bradley Lake to facilitate machine testing data collection. MAK AO- SD 15°40 FRUM:GVEA UPERATIONS ID:9674515618 PAGE Teen an 2710 GOLDEN VALLEY ELECTRIC ASSOCIATION INC. Box 71249, Fairbanks, Alaska 99707-1249, Phone 907-452-1151 March 18, 1998 Gene Bjomstad Chairman, Bradley Lake PMC. Chugach Electric Association, Inc. P.O. Box 196300 Anchorage AK’ 99519-6300 Subject: Budget Subcommittee Report Dear Gene: At the February 23, 1998 Budget Subcommittee meeting, the FY99 Project Budget was unanimously approved for consideration and adoption by the Bradley Lake Project Management Committee. | will not be attending the meeting on March 20, and as such, Elaine McCambridge will present the budget and address any questions committee members may have. The Budget Subcommittee has also approved the Parisena, Stromberg & Company financial audit. This report was distributed to all subcommittee members and is ready for public distribution. | do not believe it is necessary to have auditor representation at the meeting as this process is becoming routine, and no significant findings were discovered. Elaine will distribute a final copy of the audit at Friday's meeting. Regarding past business still needing attention, the Budget Subcommittee amended the FY98 budget on October 28, 1997, and to our knowledge, the BPMC has not approved the amendments. While we may not need utility contributions as suggested in the revised budget, we continue to recommend the BPMC approve the amended budget. As determined by actual expenses, if the revised budget utility contributions are not required, we will simply not make the payments and will adjust the year-end closing as needed. mnk-2.0-S0 19°30 FRKUM:IUVEBA UPEKALIUNS 1D:9674515618 PAGE 3718 420 EN VALLEY ZLEC LAM ASSCTULATION WNC. Budget Subcommittee Report March 18, 1998 Page 2 Summary for BPMC action: e Approve FY99 budget. e Accept Parisena, Stromberg & Company financial audit report. e Approve FY98 budget. Respectfully yours, Bradley Evans Chairman, Bradley Lake Budget Subcommittee Attachment cc: Elaine McCambridge AIDEA Mike Kelly GVEA mak-10-90 13:46 FROM:GVEA OPERATIONS 1D:98974515618 4 PAGE 4/18 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT ORIGINAL REVISED FY87 Fy38 Fy9s Fyss ACTUALS BUDGET BUOGET PROJECTED BUDGET REVENUES, EXPENSES & CHANGES IN SURPLUS REVENUES UTILITY CONTRIBUTIONS 12,984,191 13,210,680 13,210,680 13,210,680 13,843,836 INTEREST INCOME 1,891,604 1,799,998 1,799,998 1,799,998 1,899,979 FROM (TO) OPERATING RESERVE FOR REFUNDING 117,560 117,560 (117,560) ADDITIONAL CONTRIBUTION FOR REFUNDING 148,385 115,967 AEA SETTLEMENT PRIOR YEAR CORRECTIONS SALE OF VEHICLE 5,329 5,000 TRANSFER FROM ARBITRAGE 0 14,881,124 15,010,678 15,276,623 18,244,205 15,431,255 EXPENSES OPERATIONS 2,066,837 2,087,200 2,087,200 2,026,806 2,246,947 RENEWAL S/REPLACEMENTS 25,000 25,000 25,000 40,000 BOND REFUNDING COSTS 350,000 350,000 (350,000) DEBT SERVICE 13,390,560 13,389,435 13,389,435 13,389,435 13,494,308 TRANSFER TO ARBITRAGE 13,821 27.976 15,471,218 15,501,635 _ 15,851,635 15,819,217 15,431,255 CURRENT YEAR SURPLUS (DEFICIT) (530,094) (490,957) (875,012) (575,012) BEGINNING SURPLUS 1,165,106 590,957 575,012 575,012 ENDING SURPLUS 575,012 400,000 ° ° — ee ee oe — BALANCE SHEET ASSETS REVENUE FUND 174,124 100,000 : OPERATING FUND 778,487 : 952,611 100,000 — a ——— LIABILITIES & SURPLUS LIABILITIES 377,599 : - SURPLUS $75,012 100,000 952,611 OTHER INFORMATION OPERATING RESERVE $35,000 536,000 417,440 417.440 535,000 MONTHLY CONTRIBUTIONS, 1,082,016 1,100,890 1,100,890 1,100,890 1,153,653 Page 1 of 1 2/24/98/2:28 PM, 99 Bradley Budget xis BRADLEY LAKE MONTHLY UTILITY CONTRIBUTION ARV GEN VE ERMA LUND Avprguerto13D018 PAGE 5718 PERCENT FYS6 FY97 FY98 FY99 POWER PURCHASER SHARE IOQTAL TOTAL TOTAL CHUGACH ELECTRIC 30.4% 3,968,670 3,947,190 4,016,052 192,480 MUNICIPALITY OF ANCHORA — 25.9% 3,381,203 3,362,902 3,421,560 163,992 AEG&T 25.8% 3,368,148 3,349,918 3,408,360 163,344 GOLDEN VALLEY ELECTRIC 16.9% 2,208,267 2,194,326 2,232,800 107,004 CITY OF SEWARD 1.0% 130,548 129,842 132,108 6,336 336_—*12,984.178 13,210,680) 633,156 PERCENT FY96 FY97 FY97 FY99 POWER PURCHASER SHARE MONTHLY MONTHLY MONTHLY INCREASE CHUGACH ELECTRIC 30.4% 330,723 328,933 334,671 16,040 MUNICIPALITY OF ANCHORA = 25.8% 281,767 280,242 285,130 13,666 AEG&T 25.8% 280,678 279,160 284,030 13,612 GOLDEN VALLEY ELECTRIC 16.9% 183,856 182,861 186,050 8,917 CITY OF SEWARD 1.0% 10,879 10,820 11,008 528 100.0% 7,087,804 1,082,016 __1,100,690 COMPONENTS OF INCREASE IN CONTRIBUTIONS FY98 ANNUAL CONTRIBUTION DECREASE IN BUDGETED INTEREST EARNINGS INCREASE IN BUDGETED O&M COSTS INCREASE IN BUDGETED RENEWAL AND REPLACEMENTS (net of sale proceeds) INCREASE IN DEBT SERVICE REIMBURSEMENT OF BOND REFUNDING COSTS, NET OF REDEPOSIT TO OP. RESERVE DECREASE IN BUDGETED USE OF PRIOR YEAR SURPLUS ROUNDING FY99 ANNUAL CONTRIBUTION Page 1 of 1 13,210,680 100,014 159,747 10,000 104,873 (232,440) 490,957 5 13,843,836 2/24/98/2:23 PM, 99 Bradley Budget.xls BRADLEY LAKE OPERATIONS & MAINTENANCE FY98 BUDGET SUMMARY HEA O&M Contract Total CEA Dispatch and Substation Other O&M Insurance Costs Regulatory Costs Administrative Costs Bond Refunding Costs ty a] Fy98 CHANGE +, FY99 % FY97 REVISED FROM ‘98 y PROPOSED BUDGET 669,700 910,000 |8 661,215 835,600 47,000 f 47,000 511,447 433,066 462,900 466,230 322,200 315,465 329,700 317,576 0 189,500 206,675 154,500 189,500 1,761,316 1,820,200 1,890,006 290,141 ee i 1,980,147 [8 336,800 (70,000) “h 266,800 305,521 267,000 2,066,837 2,087,200 2,026,808 220,141 Ea 2,246,947 § 350,000 350,000 (700,000) oe (360,000) /& 2,066,837 2,437,200 | 2,376,806 | (470,869) fm Page 1 of 4 2/24/98/2:31 PM, 99 Bradley Budget xls CNATT WER UsrAN- rns ATASIGevaR:iat a5vd oI7s BRADLEY LAKE OPERATIONS & MAINTENANCE FY98 BUDGET i FY98 € PROPOSED & FY98 CHANGE FY97 REVISED FY98 FROM ‘98 ACTUALS BUDGET | PROJECTED) PROJECTED FERC 535 - Operation Supervision & Engineering HEA O&M Contract 99,621 120,500 89,900 13,600 Other 99,821 120,600 89,900 et FERC 637 - Hydraulic Expenses HEA O&M Coniract 6,916 20,000 9,600 8,916 20,000 9,600 | FERC 538 - Electric Expenses HEA O&M Contract 147,310 154,100 138,900 147,310 154,100 136,900 —= FERC 639 - Misc. Hydraulic Power Generation Exp HEA O&M Contract 104,504 149,000 93,700 30,600 124,500 DIS Voloe/Dala Circuits (inc. space & power) 107,453 109,200 107,500 135,634 [30% per mile increase DIS 2-way Radio Circults & radio maint. 24,691 39,200 37,000 3% per mile Increase Other 1,467 0 200 238,115 297,400 238,400 4 — FERC 540 - Rents Bradley Lake FERC land use fees (5% increase b 55,532 55,532 61,000 61,000 61,000| 61,000 FERC 542 - Maintenance of Structures HEA O&M Contract 15,300 Tree clearing 1,195 15,000 15,300 | 8,000 300 8,000 | 300 7,70 261,000 234,800 ; 263,000 261,000 234,900 __ 26,100 g __263,000 FERC 643 - Malntenance of Reservoirs, Dams & W HEA O&M Contract ojo FERC 544 - Maintenance of Electric Plant HEA O&M Confract 221,081 FERC 646 - Maintenance of Misc, Hydraullc Plant HEA O8M Contract Misc. Page 2 of 4 2/24/98/2:31 PM, 99 Bradley Budget.xls CONANT TYE IAR Ua etn © BIASTSbsAaR:=nT aovd oI7e BRADLEY LAKE OPERATIONS & MAINTENANCE FY98 BUDGET FY98 CHANGE FY99 FY97 REVISED FY98 FROM ‘98 PROPOSED ACTUALS BUDGET | PROJECTEO|) PROJECTED BUDGET FERC 656 - System Contro} & Load Dispatching HEA O&M Contract 2,584 9,000 3,500 5,500 9,000 CEA Dispatch & Softwar 392 0 0 0 0 NOAA Weather Service 6,033 6,000 6,000 0 6,000 SCS Snow Measurement 11,340 12,500 10,000 500 10,600 UAA Seismic monitoring 63,000 55,000 65,000 0 55,000 USGS Streamgvaging 119,260 120,000 131,530 6,545 138,075 USGS Minimum Flow Study 38,000 38,000 38,000 0 38,000 230,589 240,500 244,030 t 42,545 256,575 — 1. FERC 562 - Station Expenses CEA SVC/Substation Maintenance Contract 144,483 37,500 47,000 0 47,000 144,483 37,500 47,000 0 47,000 FERC 571 - Maintenance of Overhead Lines HEA Overhead Line Maintenance 16,238 22,000 | 20,000 0 20,000 16,238 22,000 20,000 0 20,000 FERC 920 - Administrative Expense AEA Admin Fee 212,079 200,000 200,000 0 200,000 Workers comp refund } AEA Administrative Costs 212,079 200,000 200,000 0 200,000 PMC Costs Bradley Lake Audit fees 8,575 15,000 15,000 0 16,000 Bradley Lake PMC Legal 59,142 30,000 100,000 (70,000) 30,000 fa No refunding legal fees. Bravley Lake Arbitrage Report 1,817 2,000 1,800 0 1,800 Budget, recording, courier 1,960 0 0 0 0 Bradiey Lake Trustee fees 21 948 | 20,000 aaseot 0 20,000 PMC Costs 93,442 67,000 136,800 (70,000) 66,800 Bond Refunding Costs Pricing Stage 0 100,000 100,000 (200,000) (100,000) Reimbursed costs from Closing 0 250,000 250,000 _ (500,000) (250,000)}8 4/29 bond closing Refunding Costs 350,000 [350,000 (700,000) (350,000) TOTAL FERC 820 305,525 617,000 686,800 (770,000) (83,200 FERC 924 - Property Insurance Bradley Lake PMC Insurance 7,783 6,600 6,000 0 8,000 Insurance Premiums 260,252 267,000 264,076 924 286,000 Homer Electro insurance 28,226 35,000 26,300 3,700 30,000 RSA with Risk Management 19,225 19,200 $9,200 0 19,200 316,485 329,700 317,676 4,624 322,200 Page 3 of 4 2/24/98/2:31 PM, 99 Bradley Budget. xls Arnetensac-arr Awa ot7s BRADLEY LAKE OPERATIONS & MAINTENANCE FY98 BUDGET 161,000 28,500 CHANGE FROM ‘98 2 Frys $f PROPOSED 189,500 FY97 AGTUALS FERC 928 - Regulatory Commission Expenses FERC administrative fees 160,680 Contraciual Engineer - Bradley FERC Lloensing 11,893 Reimb from Construction Fund (prior year) 5 Year Inspaction & Fotlow-up 34,102 206,675 TOTAL BRADLEY LAKE BUDGET 2,068,837 2,437,200 2,976,808 Page 4 of 4 (479,859) ee __ 1,006,907 fe 2/24/98/2:31 PM, 99 Bradley Budget.xls @racrersac:ar Wea alse BRADLEY LAKE BUDGET ACTIVITY BY ACCOUNT Rey Fund O&M Fund Debt Fund Op Reserve R&C Cap Reserve Total 6/30/98 Projected Balance . 1 2 417,440 6,000,009 13,392,880 18,810,342 FY99 Budget - Revenues 13,843,836 13,843,836 Interest 1,699,979 1,699,979 Reimbursement for refu 232,440 117,560 350,000 Transfers to O&M (2,246,947) 2,246,947 6 Transfers to Debt Servic (13,494,308) : 13,494,308 - 98 O&M Requisitions (2,246,947) (2,246,947) 99 Renewals/Repiaceme (35,000) (35,000) Debt Payments 1/1/99, 4/1/99, 7/1/98 (13,494,308) (13,494,308) 6/30/99 Projected Balance - 1 2 535,000 5,000,009 13,392,890 18,927,902 a ni a 0% of Annual O&M Budget 24% of Annual O&M Budget Page 1 of 1 2/24/98/2:31 PM, 99 Bradley Budget.xis aAswos atsar ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT REVENUES, EXPENSES & CHANGES IN SURPLUS REVENUES UTILITY CONTRIBUTIONS INTEREST INCOME FROM (TO) OPERATING RESERVE FOR REFUNDING ADDITIONAL CONTRIBUTION FOR REFUNDING AEA SETTLEMENT PRIOR YEAR CORRECTIONS SALE OF VEHICLE TRANSFER FROM ARBITRAGE EXPENSES OPERATIONS RENEWALS/REPLACEMENTS BOND REFUNDING COSTS DEBT SERVICE TRANSFER TO ARBITRAGE CURRENT YEAR SURPLUS (DEFICIT) BEGINNING SURPLUS ENDING SURPLUS BALANCE SHEET ASSETS REVENUE FUND OPERATING FUND LIABILITIES & SURPLUS LIABILITIES SURPLUS OTHER INFORMATION OPERATING RESERVE MONTHLY CONTRIBUTIONS ORIGINAL REVISED FY97 FY98 Fy98 FY98 ACTUALS BUDGET BUDGET PROJECTED 12,984,191 13,210,680 13,210,680 13,210,680 13,843,836 1,891,604 1,799,998 1,799,998 1,799,998 1,699,979 117,560 117,560 (117,560)| 148,385 115,967 5,329 5,000 0 14,881,124 15,010,678 15,276,623 15,244,205 15,431,255 2,066,837 2,087,200 2,087,200 2,026,806 2,246,947 25,000 25,000 25,000 40,000 350,000 350,000 (350,000) 13,390,560 13,389,435 13,389,435 13,389,435 13,494,308 13,821 27,976 15,471,218 15,501,635 _ 15,851,635 15,819,217 15,431,255 (590,094) (490,957) (575,012) (575,012) 1,165,106 590,957 575,012 575,012 575,012 100,000 0 0 ae 174,124 100,000 pe 1 778,487 : : : 952,611 100,000 - : 377,599 - - 575,012 100,000 : : 952,611 100,000 - - 535,000 535,000 417,440 on 417,440 535,000 1,082,016 1,100,890 1,100,890 1,100,890 1,153,653 Page 1 of 6 3/19/98/4:48 PM, 99 Bradley Budget.xls 8 % BRADLEY LAKE MONTHLY UTILITY CONTRIBUTION PERCENT FY96 FY97 FY98 FY99 POWER PURCHASER SHARE TOTAL TOTAL TOTAL CHUGACH ELECTRIC 30.4% 3,968,670 3,947,190 4,016,052 4,208,532 192,480 MUNICIPALITY OF ANCHORA 25.9% 3,381,203 3,362,902 3,421,560 3,585,552 163,992 AEG&T 25.8% 3,368,148 3,349,918 3,408,360 3,571,704 163,344 GOLDEN VALLEY ELECTRIC 16.9% 2,206,267 2,194,326 2,232,600 2,339,604 107,004 CITY OF SEWARD 1.0% 130,548 129,842 132,108 138,444 6,336 100.0% 13,054,836 12,984,178 13,210,680 13,843,836 633,156 PERCENT FY96 FY97 FY97 FY99 FY99 POWER PURCHASER SHARE MONTHLY MONTHLY MONTHLY MONTHLY INCREASE CHUGACH ELECTRIC 30.4% 330,723 328,933 334,671 350,711 16,040 MUNICIPALITY OF ANCHORA 25.9% 281,767 280,242 285,130 298,796 13,666 AEG&T : 25.8% 280,679 279,160 284,030 297,642 13,612 GOLDEN VALLEY ELECTRIC 16.9% 183,856 182,861 186,050 194,967 8,917 CITY OF SEWARD 1.0% 10,879 10,820 11,009 528 1,087,904 1,082,016 1,100, COMPONENTS OF INCREASE IN CONTRIBUTIONS FY98 ANNUAL CONTRIBUTION 13,210,680 DECREASE IN BUDGETED INTEREST EARNINGS 100,014 INCREASE IN BUDGETED O&M COSTS 159,747 INCREASE IN BUDGETED RENEWAL AND REPLACEMENTS (net of sale proceeds) 10,000 INCREASE IN DEBT SERVICE 104,873 REIMBURSEMENT OF BOND REFUNDING COSTS, NET OF REDEPOSIT TO OP. RESERVE (232,440) DECREASE IN BUDGETED USE OF PRIOR YEAR SURPLUS 490,957 ROUNDING 5 FY99 ANNUAL CONTRIBUTION 13,843,836 Page 2 of 6 3/19/98/4:48 PM, 99 Bradley Budget.xls BRADLEY LAKE OPERATIONS & MAINTENANCE FY98 BUDGET CHANGE Fy99 FY97 FY98 FROM '98 PROPOSED ACTUALS | PROJECTED| PROJECTED BUDGET SUMMARY HEA O&M Contract Total 661,215 669,700 240,300 910,000 CEA Dispatch and Substation/SVC Maintenance 144,875 47,000 0 47,000 Other O&M : 433,066 466,230 45,217 511,447 Insurance Costs 315,485 317,576 4,624 322,200 Regulatory Costs 206,675 189,500 189,500 1,761,316 1,690,006 290,141 b 1,980,147 Administrative Costs 305,521 336,800 (70,000) 6 266,800 2,066,837 2,026,806 220,141 17%, 2,246,947 Bond Refunding Costs 350,000 (700,000) 00% (350,000) 2,066,837 2,376,806 (479,859) Ke 1,896,947 Page 3 of 6 3/19/98/4:48 PM, 99 Bradley Budget.xls BRADLEY LAKE OPERATIONS & MAINTENANCE FY98 BUDGET : FERC 535 - Operation Supervision & Engineering HEA O&M Contract Other FERC 537 - Hydraulic Expenses HEA O&M Contract FERC 538 - Electric Expenses HEA O&M Contract FERC 539 - Misc. Hydraulic Power Generation Exp HEA O&M Contract DIS Voice/Data Circuits (inc. space & power) DIS 2-way Radio Circuits & radio maint. Other FERC 540 - Rents Bradley Lake FERC land use fees (5% increase b FERC 542 - Maintenance of Structures HEA O&M Contract FERC 543 - Maintenance of Reservoirs, Dams & W HEA O&M Contract FERC 544 - Maintenance of Electric Plant HEA O&M Contract FERC 545 - Maintenance of Misc. Hydraulic Plant HEA O&M Contract Misc. CHANGE FY99 FY97 FY98 FROM '98 PROPOSED ACTUALS | PROJECTED] PROJECTED /=Change BUDGET 99,821 89,900 13,600 103,500 99,821 89,900 103,500 8,916 9,600 15,000 8,916 9600] —_—_—*§,400 | 15,000 147,310 136,900 149,000 147,310 | 136,900 149,000 104,504 93,700 124,500 107,453 107,500 135,634 24,691 37,000 44,188 1,467 200 0 238,115 238,400 304,322 55,532 61,000 64,050 55,532 61,000 64,050 1,195 15,300 120,700 § 136,000 1,195 15,300 | 120,700 bee 136,000 == ie 0 300 7,700 § 8,000 CH EE 300 | 7,700 8,000 221,081 234,900 t 28,100 § 263,000 221,081 234,900 28,100 263,000 ‘a 75,794 85,600 16,400 ° 102,000 82 0 3 0 75,876 85,600 16,400 102,000 = T Page 4 of 6 3/19/98/4:48 PM, 99 Bradley Budget.xls BRADLEY LAKE OPERATIONS & MAINTENANCE FY98 BUDGET FERC 556 - System Control & Load Dispatching HEA O&M Contract CEA Dispatch & Softwar NOAA Weather Service SCS Snow Measurement UAA Seismic monitoring USGS Streamguaging USGS Minimum Flow Study FERC 562 - Station Expenses CEA SVC/Substation Maintenance Contract FERC 571 - Maintenance of Overhead Lines HEA Overhead Line Maintenance FERC 920 - Administrative Expense AEA Admin Fee Workers comp refund AEA Administrative Costs PMC Costs Bradley Lake Audit fees Bradley Lake PMC Legal Bradley Lake Arbitrage Report Budget, recording, courier Bradley Lake Trustee fees PMC Costs Bond Refunding Costs Pricing Stage Closing Refunding Costs TOTAL FERC 920 FERC 924 - Property Insurance Bradley Lake PMC Insurance Insurance Premiums Homer Electric Insurance RSA with Risk Management FERC 928 - Regulatory Commission Expenses FERC administrative fees Contractual Engineer - Bradley FERC Licensing Reimb from Construction Fund (prior year) 5 Year Inspection & Follow-up TOTAL BRADLEY LAKE BUDGET CHANGE Fy99 FY97 FY98 FROM '98 PROPOSED ACTUALS | PROJECTED} PROJECTED [Chang BUDGET 2,594 3,500 5,500 9,000 392 0 0 : 0 6,033 6,000 0 6,000 11,310 10,000 500 & 10,500 53,000 55,000 0 55,000 119,260 131,530 oe 138,075 38,000 38,000 38,000 230,589 244,030 [-—azas 144,483 47,000 | al 256,575 47,000 144,483 47,000 47,000 16,238 20,000 20,000 16,238 20,000; i si 20,000 212,079 200,000 0 200,000 212,079 200,000 200,000 8,575 15,000 15,000 59,142 100,000 30,000 1,817 1,800 1,800 1,960 0 21,948 20,000 93,442 136,800 (70,000) 0 100,000 (200,000) (100,000) 0 250,000 (500,000) (250,000) 350,000 (700,000) (350,000) 305,521 686,800 (770,000) |e (83,200) 7,783 8,000 0 8,000 260,252 264,076 924 265,000 28,225 26,300 30,000 19,225 19,200 19,200 315,485 317,576 4,624 322,200 160,680 161,000 0 161,000 11,893 28,500 OF 28,500 0 34,102 0 206,675 189,500 189,500 2,066,837 2,376,806 L (479,859) fF . 1,896,947 Page 5 of 6 3/19/98/4:48 PM, 99 Bradley Budget.xls BRADLEY LAKE BUDGET ACTIVITY BY ACCOUNT ‘ Rey Fund O&M Fund Debt Fund Op Reserve R&C Cap Reserve Total 6/30/98 Projected Balance - 1 2 417,440 5,000,009 13,392,890 18,810,342 FY99 Budget - Revenues . 13,843,836, 13,843,836 Interest 1,699,979 1,699,979 Reimbursement for refun 232,440 117,560 350,000 Transfers to O&M (2,246,947) 2,246,947 - Transfers to Debt Servic (13,494,308) 13,494,308 - 99 O&M Requisitions (2,246,947) (2,246,947) 99 Renewals/Replaceme (35,000) (35,000) Debt Payments 1/1/99, 4/1/99, 7/1/99 (13,494,308) (13,494,308) 6/30/99 Projected Balance - 1 2 535,000 5,000,009 13,392,890 18,927,902 A A 0% of Annual O&M Budget 24% of Annual O&M Budget Page 6 of 6 3/19/98/4:48 PM, 99 Bradley Budget.xls Review and Update on the Bradley Lake Instability and Control Response i et, rpiect PIO Bradley Lake O&D Subcomm Presented by: Brian Hickey ¢ January 1996 Kenai voltage problems Chugach to request funds for the installation of high bandwidth system monitoring equipment at Daves Creek and Soldotna Substations. ¢ The static VAR compensator, power oscillation dampening equipment (SVC- POD) was a suspected cause of the unstable Bradley Lake oscillations. ¢ February 9, 1996- Funds fo ‘SYS monitoring equipment were authorized by the BPMC. ¢ November 1996 -The Bradley Lake documentation review was undertaken to ascertain whether or not analysis done during plant commissioning would rule out POD equipment as a source of the instability. ¢ January 1997- The docume mn tr away from the SVC- POD equipment and to the hydro-electric plant itself. ¢ The last documented commissioning reference to the instability problem is a September 22, 1993 letter from SWEC project manager T. Critikos to Dave Eberle at the Alaska Energy Authority ° T. Critikos to D. Eberle, 9- “Enclosed is the governor modification report. The report documents the new governor algorithm developed to improve governor response. Please review the report. The governor has shown improved operation since installation. Stone and Webster recommends that the modification be accepted with the recommendation that Woodward correct the oscillation problem observed.” ¢ The next documented reference regarding the instability problem occurs in 1995, long after commissioning was completed. ¢ This document is an analysis of the March 19,1995 Bradley instability event. ¢ It was performed by Stone and Webster and Power Technologies Inc. (PTI). ¢ In this analysis SWEC/PTI were unable to recreate the oscillations using the PTI PSS/E simulation program, but they infer that the problem is an unstable automatic generation control (AGC) loop created by Chugach SCADA ¢ January 14, 1997- The O&D subcommittee received approval from the BPMC to proceed with Items I, II, & III of the “Action Plan for Correction of The Bradley Lake Project Instability and Control Problems” ¢ And to return to the BPMC with a revised Action Plan once these items were complete. Current P ¢ Original completion date for Items I, II, & II] was July 31, 1997. Due to delays in the RFP award this date was moved to August 31, 1997. ¢ The magnitude of the scope of the simulation work delayed the final report until January 15, 1998, approximately six months behind schedule. ¢ February 2, 1998- Utility person participated in a machine testing seminar by Rennsaler Polytechnic Institute (RPI) and ABB. ¢ February 3, 1998- A round table discussion was held regarding machine testing and the Bradley Lake instability problem. ¢ Participants included: Utility Representatives, AIDEA representatives, Electric Power Systems, RPI, ABB, Woodward Governor. ¢ The BPMC has approved two funding sources for work related to Bradley Instability — Construction List Item 18, System Analysis Equipment — Items I, II, & III of the Instability Action Plan Construction List Item 18 -System Analysis Equipment. Funds Budgeted $150,000 Funds Expended $ 36,307 Estimated cost tocomplete $100,000 D wet pyywrrArt Chor {Red jvstrweAerll U ¢ Bradley Lake Instability Action Plan Items I, II, & II] ¢ Funds Budgeted $145,000 ¢ Funds Expended $134,867 ¢ Funds estimated to complete $ 20,000 ¢ Operations and Maintenance Budget ¢ Funds expended $3,172 Current Total Funding Picture Funds Budgeted — Funds Expended — Estimated funds to complete work Estimated funds expended Estimate Actual as a percent of Budget equals 98% $299,000 $174,347 $120,000 $294,347 What have we accomplished for ¢ We have completed Item I of the Action Plan — We have isolated a previously unidentified mode of oscillation centering around 750 milliseconds. — We have determined that this mode of oscillation is unique to Bradley Lake. What have we accomplished for funds ¢ We have completed Item II a — We have developed an accurate model of the Bradley Lake control system and benchmarked it against 10 actual events documented in item I. — The model benchmarks reasonably well; however there are modeling errors and parameterization errors in the PSS/E database which preclude highly accurate convergence. What have we aCCOmpE Snes for — We have evaluated the effect of speed reference and deflector delay times on plant stability. — We can now more accurately model traveling waves within the tunnel — We have uncovered several “quirks “ in the implementation of the plant control schemes which limit control response. What have we sotetac nso for ¢ We have completed Items II-b &c of the Action Plan — Most important- We have isolated several key parameters which, when varied within reasonable ranges, cause poorly damped oscillations in the 750 millisecond range. — Under system conditions which have historically resulted in electrical instability, these simulations also lead to instability. What have we accomphsned for ¢ We have completed Items II]-a, b and IV-a of the Action Plan. — We have verified that the PSS settings are eas ona — And we have verified that the Exciter model provided by FUJI agrees with the SCRX model used in PSS/E. completion of enn I, I, & Ill of the ae anuary 14, Action Plan, the O&D committee was required to return to the BPMC upon completion of items I, II, & III with a revised Action Plan. We are now returning to you with a revision to the Action plan, even though we have not completed Items II-d, e, & f. Where do we golem ¢ What has been learned, so far, requires a change in scope of the Action Plan Item II. ¢ Without this change completion of II-d, e, & fis not possible. Where do we golfr@mihe: ¢ This change in scope is required because the work covered by the change in scope was not anticipated at the time the 1997 Action Plan was drawn up. ¢ Our revised Action Plan recommends a three pronged approach achieving level of model accuracy unanticipated in January of 1997 Where do we goj ¢ We recommend the followin tracks. — Correct the algorithm and parameterization problems within PSS/E — Develop a formal machine eae plan to collect paramertization data. ire — Install the system monitoring equipment originally destined for Daves creek and Soldotna Substations at Bradley Lake. Budget Incre@iS§euks ¢ Additional work required under revisec Action Plan -Item IV ¢ PSS/E Model work $ 43,600 ¢ Machine testing assistance $ 40,000 ¢ Total Additional Work Item IV $ 83,600 Budget Increkiggiiam ° This will increase the total funding™= committed to Items I, II, II, acd] IV of the Revised Action Plan to $382,600 verses the $299,000 currently allocated. Proposed Proj é@{S@ixg ¢ Complete PSS/E revisions ¢ Complete machine instrumentation installation by July 1, 1998 ¢ Complete Machine testing plan by July 1, 1998 ¢ Complete machine testing by July 31, 1998 Where will this leave us in ¢ In August of 1998 we will eva gathered during testing. ¢ In September 1998 we will return to the BPMC with the results of the testing. ¢ If the test results prove our current simulations accurate, I anticipate we will be able to recommend changes to the control system which will eliminate the instability problem. Where will this leave us in governor to a wholesale a of the governor and the addition of other stabilization equipment. ¢ Control system corrections which are made to eliminate the instability problem will, wherever possible, be implemented so as to improve control response. What about further exj ¢ The control system corrections will require proof of concept studies. These will require additional funding. ¢ The Control system corrections may require hardware additions and modifications. All of which will require additional funding. the limiting cases of the various ee ae studies identified in the Revised Action Plan will need to be completed. These studies will also require additional funding. These items, requiring additional funding, are further detailed in sections V, VI, VII, VIII & IX of the Revised Action Plan. : ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY / = ALASKA mm =ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 March 24, 1998 Ms. Cindy S. Carl, Owner Executary 626 Cordova, Suite 104 Anchorage, Alaska 99501 Dear Cindy: Please provide a summary from the enclosed tape for the Bradley Lake Project Management Committee (BPMC) meeting minutes (send a disc of the minutes too). If you have any questions, please call me. Sincerely, Shauna M. Dean Enclosures ALASKA INDUSTRIAL DEVELOPMENT > ¢ 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 Friday, March 20, 1998 — 10:00 a.m. Chugach Electric Association — Board Room 5601 Minnesota Drive 1, CALLTOORDER ” Bjornstad 2. ROLL CALL (for Committee members) a 3. PUBLIC ROLL CALL (for all others present) ~ 4. PUBLIC COMMENT, ~ 5. AGENDA COMMENTS 1. 6: APPROVAL OF MEETING MINUTES — December 9, 1997 Va December 10, 1997 December 12, 1997 »~ 7. NEW BUSINESS A. Status of Instability and Control Response Project Hickey 4 B. Request to Increase Funding to Continue Studies ; x Associated with Project Hickey C. FY 99 Project Budget Evans/McCambridge ,~ D: Revisions of the FY 98 Project Budget Evans/McCambridge a 8. COMMITTEE COMMENTS A. Next Meeting Date Bjornstad | 9. ADJOURNMENT “+r (aw Hickey radl j itte The Bradley lake Project Management Committee (BPMC) hereby authorizes the Bradley Lake O&D Committee to complete phases I ,II and III of the attached action plan for “Correction of the Bradley Lake Project Instability and Control Problems. Funds in an amount not to exceed $ 145,000 are to be allocated to these phases of the project. These funds are to be dedicated to the project from the remaining Bradley Lake Construction Funds. The O&D committee will provide regular interim reports to the BPMC of their progress in resolving this issue. Upon successful completion of phases I, II and III, the Bradley O&D committee will return to the BPMC with their findings and a revised action plan detailing the steps required to complete the remaining tasks. For Correcti e B ject I ili 0 Since its initial operation the Bradley Project has participated in numerous system disturbances in which the project has displayed unstable control action. Furthermore, during several system disturbances the project has not responded, in any measurable way, severe underfrequency conditions. The specifics of these events are detailed in the attached Bradley Governor Documentation Report. The following is an action plan to systematically isolate and resolve Bradley Project control problems. bE Analyze all data from the historical instability events and categorize by Mode of Oscillation, Governor Control Mode, and System Configuration... Il. Resolve the governor instability problem. Without resolution of the Project instability problem meaningful control improvements cannot be made. a. Obtain or develop an accurate Bradley Governor Model, bench mark the model against both known instability cases and steady state boundary cases. ar nD Evaluate the effect of speed reference changes and Deflector delay times on the model. EAIC: Verify the ability of these specific problems to create instability in the unit. ia/ @ Contract with Woodward to make changes to the Governor to correct the unstable Pras be control parameters. rf Pf \ e. Recreate the instability conditions and confirm that the unit is no longer unstable. \ f. Optimize existing Governor control settings, and verify against benchmarked . model. Ill. Resolve the exciter model discrepancies. Fuji model verses standard SCRX model. a. Research PTI and SWEC records for documentation of exciter model. b. Forward documentation to FUJI with request for verification of model. IV VI VII. Vil. Review coordination of the Power System Stabilizer Settings and the Power Oscillation Damper settings. a. Research and Document PTI’s PSS settings methodology. b. Research and Document ABB’s POD settings methodology C Verify the POD/PSS Models, bench mark against actual events. Investigate and perform a proof of concept study on each of the following governor control improvements. a. Automatic trip to six needle mode on under frequency. b. Underfrequency trip to Deflector mode with increased bias. Cc. Over frequency trip to Deflector mode with increased bias. d. Suspension of the 32 second AGC time delay, and increased AGC control Bradley during disturbances both islanded and interconnected. e; External control of Bradley during system disturbances both islanded and interconnected either by the new Joint SCADA system or a local PLC based device. i The ability to change PID control constants based on external system conditions, for example islanding, unit trips, BES/SMES on or off line. g. Rate of Change underfrequency loadshed for the Kenai. h. SCADA armed underfrequency loadshed, based on actual Kenai Import/Export and Generation status. Implement Viable/ cost effective control improvements. Review the limiting cases of the various operating studies to determine the effect of governor/exciter modifications on prescribed plant limitations. a. Kenai Underfrequency loadshed study, minimum generation levels. b. Kenai Import/Export Limits and Load shedding. @ Load Acceptance Study. d. Bradley Final Operating Study. Performance test and document the Project March 18, 1998 Revised Action Plan For Correction of The Bradley Lake Project Instability and Control Problems Since its initial operation, the Bradley Project has participated in numerous system disturbances in which the project has displayed unstable control action. Furthermore, during several system disturbances the project has not responded, in any measurable way, severe underfrequency conditions. The specifics of these events are detailed in the attached Bradley Governor Documentation Report. The following is an action plan to systematically isolate and resolve Bradley Project control problems. Il. Resolve the governor instability problem. Without resolution of the Project instability problem meaningful control improvements cannot be made. Contract with Woodward to make changes to the Governor to correct the unstable control parameters. e} Recreate the instability conditions and confirm that the unit is no longer unstable. i Optimize existing Governor control settings, and verify against benchmarked model. el Not required based on III-a. [fee “Research and Document PITS PSS seitings methodology IV. RAV. VI. Additional testing and data collection required to complete item II- d, e and f. a. Correct and document algorithms within the PSS/E model to allow benchmarking and control response analysis of the Bradley Lake model. b. Develop a written machine testing plan to quantify the variables which lead to plant instability. c. Install additional dynamic systems monitoring equipment at the plant to collect data on the instability variables. d. Complete machine testing, analyze results, perform additional benchmarking. Review coordination of the Power System Stabilizer Settings and the Power Oscillation Damper settings. ba. | Research and document ABB’s POD settings methodology. eb. Verify the POD/PSS Models, benchmark against actual events. Investigate and perform a proof of concept study on each of the following governor control improvements. a. Automatic trip to six needle mode on underfrequency. b. Underfrequency trip to Deflector mode with increased bias. Cc} Over frequency trip to Deflector mode with increased bias. d. Suspension of the 32 second AGC time delay, and increased AGC control Bradley during disturbances both islanded and interconnected. ec} External control of Bradley during system disturbances both islanded and interconnected either by the new joint SCADA system or a local PLC based device. fs The ability to change PID control constants based on external system conditions; for example: islanding, unit trips, BES/SMES on or off line. g. Rate of change underfrequency loadshed for the Kenai. h. SCADA armed underfrequency loadshed, based on actual Kenai Import/Export and Generation status. YEVII. Implement viable/cost effective control improvements. ME-VIII. Review the limiting cases of the various operating studies to determine the effect of governor/exciter modifications on prescribed plant limitations. a. Kenai underfrequency loadshed study, minimum generation levels. b. Kenai Import/Export Limits and Loadshedding. c: Load Acceptance Study. d. Bradley Final Operating Study. VEEIX. Performance test and document the Project. Motions Recommended by the Bradley O&D Subcommittee for Action by the Bradley Lake Project Management Committee at the March 20, 1998 Meeting Recommendation One Move to authorize the Bradley Lake O&D Subcommittee to issue contracts in the amounts listed. 1) Not to exceed $43,600 to Electric Power Systems Inc., to correct algorithms in the PSS/E which prevent the accurate modeling of the Railbelt power system during instability and control response events involving the Bradley Lake project and to provide technical programing assistance. 2) Not to exceed $40,000 to fund machine testing and instrumentation consultation and assistance from Fuji Electric, Stone and Webster Engineering, Woodward Governor, and others. All expenditures to be funded from the remaining project construction funds. Recommendation Two Move to approve that the installation of system monitoring equipment, originally approved for installation at Soldotna and Daves Creek, be installed at Bradley Lake to facilitate machine testing data collection. wt’ ALASKA INDUSTRIAL DEVELOPMENT > AND EXPORT AUTHORITY = ALASKA iE =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. Frou nia Ye Coho Secretary ALASKA INDUSTRIAL DEVELOPMENT > ¢ 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 10, 1997 EXCERPT FROM UNAPPROVED MINUTES 6. NEW BUSINESS A. Bond Pricing Mr. Griffith briefed the committee regarding phone conversations with Senator Murkowski’s legislative director, Alexander Polanski. He stated Mr. Polanski will be drafting up a letter for Senator Murkowski’s signature clarifying the issue on Senate Bill 1483. He requested the meeting be recessed to December 12, 1997 at 10:00 a.m. Hearing no objection, Chairman Bjornstad recessed the meeting to December 12, 1997 at 10:00 a.m. Fon wig VM Cada Secretary n ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY {= ALASKA i = ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 ALASKA ENERGY AUTHORITY BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE DECEMBER 12, 1997 EXCERPT FROM UNAPPROVED MINUTES 6. NEW BUSINESS A. Bond Pricing Mr. Laufer said a change is needed in the Forward Refunding Bond Purchase Agreement that states that opinion letters from counsel to the individual utilities’ counsel will be received sometime before the closing scheduled for January 1998. There will also be a change to the Confirming Resolution. In the second Whereas provision it should read, “WHEREAS, the Alaska Energy Authority (“Authority”) intends to enter into the Forward Delivery Bond Purchase Agreement with Goldman Sachs & Co. and agreeing to interest costs on Refunding Bonds pursuant to such Agreement; and.” Mr. Bloom briefed the committee on the current market and the present value savings on the two refunding series combined. The two series combined present value savings was just over $8.5 million; the third series was approximately $5.3 million; and the fourth series was approximately $3.2 million. Discussions ensued regarding changes to the Confirming Resolution. Mr. Saxton read the Confirming Resolution in its entirety into record: “Confirming Resolution of the Bradley Lake Project Management Committee Relating to Forward Bond Purchase Agreement. Whereas, the Bradley Lake Project Management Committee adopted the Approving Resolution of Bradley Lake Hydroelectric Project, Project Management Committee on December 9, 1997 (‘Approving Resolution”); and Whereas, the Alaska Energy Authority (“Authority”) intends to enter into the Forward Delivery Bond Purchase Agreement with Goldman Sachs & Co. agreeing to interest costs on Refunding Bonds pursuant to such Agreement; and Whereas, the purpose of this resolution is to confirm and ratify the Approving Resolution and the actions to be taken by the Authority to execute the Forward Bond Purchase Agreement; Excerpt from Unapproved Minutes December 12, 1997 Meeting Page 2 Now, Therefore, Be It Resolved by the Bradley Lake Project Management Committee that the actions to be taken by the Authority to execute the Forward Bond Purchase Agreement with Goldman Sachs & Co. are approved, confirmed, and ratified. Adopted this 12" day of December, 1997.” MOTION: Mr. Norm Story moved to approve the Confirming Resolution as so stated by Mr. Ron Saxton. Seconded by Ms. Meera Kohler. There being no discussion, a roll call vote was requested. Upon roll call vote, the motion passed unanimously. Hearing no objection, Chairman Bjornstad adjourned the meeting at 10:20 a.m. Dew un VM fol Secretary at ed awrogurntvss0is race 2710 GOLDEN VALLEY ELECTRIC ASSOCIATION INC. Box 71249, Fairbanks, Alaska 99707-1249, Phone 907-452-1181 March 18, 1998 Gene Bjomstad Chairman, Bradley Lake PMC Chugach Electric Association, Inc. P.O. Box 196300 Anchorage AK’ 99519-6300 Subject: Budget Subcommittee Report Dear Gene: At the February 23, 1998 Budget Subcommittee meeting, the FY99 Project Budget was unanimously approved for consideration and adoption by the Bradley Lake Project Management Committee. | will not be attending the meeting on March 20, and as such, Elaine McCambridge will present the budget and address any questions committee members may have. The Budget Subcommittee has also approved the Parisena, Stromberg & Company financial audit. This report was distributed to all subcommittee members and is ready for public distribution. | do not believe it is necessary to have auditor representation at the meeting as this process is becoming routine, and no significant findings were discovered. Elaine will distribute a final copy of the audit at Friday's meeting. Regarding past business still needing attention, the Budget Subcommittee amended the FY98 budget on October 28, 1997, and to our knowledge, the BPMC has not approved the amendments. While we may not need utility contributions as suggested in the revised budget, we continue to recommend the BPMC approve the amended budget. As determined by actual expenses, if the revised budget utility contributions are not required, we will simply not make the payments and will adjust the year-end closing as needed. awe eee ev avuess reen sv 10 (VEN VALLEY CLECLAIC ASSCTIATION WN G ¢, Budget Subcommittee Report March 18, 1998 Page 2 Summary for BPMC action: e Approve FY99 budget. e Accept Parisena, Stromberg & Company financial audit report. e Approve FY98 budget. Respectfully yours, € coe c : Oe Bradley Evans Chairman, Bradley Lake Budget Subcommittee Attachment cc: Elaine McCambridge AIDEA Mike Kelly GVEA -~- vee avavuse soe “av aw ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJE( ORIGINAL REVISED FY87 Fys8 FY93s FYS8 Fys9 ACTUALS BUDGET SBUQGET PROJECTED BUDGET REVENUES, EXPENSES & CHANGES IN SURPLUS REVENUES UTILITY CONTRIBUTIONS 12,984,191 13,210,680 13,210,680 13,210,680 13,843,836 INTEREST INCOME 1,891,604 1,799,998 1,799,998 1,799,998 1,699,979 FROM (TO) OPERATING RESERVE FOR REFUNDING 117,560 117,560 (117,560) ADDITIONAL CONTRIBUTION FOR REFUNDING 148,385 115,967 0 AEA SETTLEMENT 0 PRIOR YEAR CORRECTIONS 9 SALE OF VEHICLE $329 5,000 TRANSFER FROM ARBITRAGE 0 14,881,124 15,010,678 15,276,623 15,244,205 15,431,255 EXPENSES OPERATIONS 2,066,837 2,087,200 2,087,200 2,026,806 2,246,947 RENEWALS/REPLACEMENTS 25,000 25,000 25,000 40,000 BOND REFUNDING COSTS 350,000 350,000 (350,000) DEBT SERVICE 13,390,560 13,389,435 13,389,435 13,389,435 13,494,308 TRANSFER TO ARBITRAGE 13,821 27,976 15,471,218 15,501,635 15,851,635 15,819,217 15,431.255 CURRENT YEAR SURPLUS (DEFICIT) (590,094) (490,957) (875,012) (575,012) 0 BEGINNING SURPLUS 1,165,106 590,957 575,012 575,012 Q ENDING SURPLUS 575,012 100,000 o 9 9 —=$— a = 2 BALANCE SHEET ASSETS REVENUE FUND 174,124 100,000 : - - OPERATING FUND 778,487 : - - = 952,611 100,000 - - cs a Sr LIABILITIES & SURPLUS LIABILITIES 377,599 - - SURPLUS 575,012 100,000 - - : ge ORS NE De ean OTHER INFORMATION OPERATING RESERVE 535,000 536,000 417,440 417,440 535,000 MONTHLY CONTRIBUTIONS 1,082,016 1,100,890 1,100,890 1,100,890 1,153,653 Page 1 of 1 2/24/98/2:28 PM, 99 Bradley Budget xis BRADLEY LAKE MONTHLY UTILITY CONTRIBUTION PERCENT FY96 FY97 FY98 POWER PURCHASER SHARE TOTAL TOTAL TOTAL CHUGACH ELECTRIC 30.4% 3,968,670 3,947,190 4,016,052 4,208,532 192,480 MUNICIPALITY OF ANCHORA =. 25.9% 3,381,203 (3,362,902 3,421,560 3,585,552 163,992 AEG&T 25.8% 3,368,148 3,349,918 3,408,360 3,571,704 163,344 GOLDEN VALLEY ELECTRIC 16.9% 2,208,267 2,194,326 —2,232,600 2,339,604 107,004 CITY OF SEWARD 1.0% 130,548 129,842 132,108 138,444 6,336 73,210,680) PERCENT FY96 FY97 FYS7 POWER PURCHASER SHARE MONTHLY MONTHLY MONTHLY CHUGACH ELECTRIC 30.4% 330,723 328,933 334,671 16,040 MUNICIPALITY OF ANCHORA 25.8% 281,767 280,242 285,130 13,666 AEG&T 25.8% 280,679 279,160 284,030 13,612 GOLDEN VALLEY ELECTRIC 16.9% 183,856 182,861 186,050 8,917 CITY OF SEWARD 1.0% 10,879 10,820 11,009 528 100.0% 1,087,804 1,082,016 1,100,800, COMPONENTS OF INCREASE IN CONTRIBUTIONS FY98 ANNUAL CONTRIBUTION DECREASE IN BUDGETED INTEREST EARNINGS INCREASE IN BUDGETED O&M COSTS INCREASE IN BUDGETED RENEWAL AND REPLACEMENTS (net of sale proceeds) INCREASE IN DEBT SERVICE REIMBURSEMENT OF BOND REFUNDING COSTS, NET OF REDEPOSIT TO OP. RESERVE DECREASE IN BUDGETED USE OF PRIOR YEAR SURPLUS ROUNDING FY99 ANNUAL CONTRIBUTION Page 1 of 1 13,210,680 100,014 159,747 10,000 104,873 (232,440) 490,957 5 13,843,836 2/24/98/2:29 PM, 99 Bradley Budget.xis eras BRADLEY LAKE OPERATIONS & MAINTENANCE FY98 BUDGET SUMMARY HEA O&M Contract Total CEA Dispatch and sana hl Other O&M Insurance Costs Regulatory Costs Administrative Costs Bond Refunding Costs y FY98 CHANGE Fyss) i FY97 REVISED FY98 FROM ‘98 PROPOSED || ACTUALS | BUDGET | PROJECTED] PROJECTED BUDGET 661,215 835,600 669,700 240,300 910,000 F 144,875 37,600 47,000 of 47,000 433,086 462,900 466,230 45,217 511,447 315,485 329,700 317,576 4,624 322,200 FF 206,675 154,500 189,500 al 0 189,500 1,781,316 rama — 7,890,006 290,141 § 4,980,147 305,521 267,000 336,800 (70,000) ; 266,800 ff 2,066,037 | 2,087,200 | 2,026,606 220,141 2,246,947 350,000 360,000 (700,000) (350,000)| E 7,066,837 (479,060) 7,556,047 fe Page 1 of 4 2/24/98/2:31 PM, 99 Bradley Budgel xls anu: arsa BRADLEY LAKE OPERATIONS & MAINTENANCE FY88 BUDGET FY98 CHANGE r FY88 EE FY97 REVISED FY98 FROM ‘98 PROPOSED ACTUALS BUDGET | PROJECTED) PROJECTED FERC 535 - Operation Supervision & Engineering HEA O&M Contract 99,821 120,500 89,900 13,600 Other 99,821 120,600 | 69,900 = at FERC 637 - Hydraulic Expenses 2 HEA O&M Contract 20,000 9,600 __20,000 9,600 FERC 536 - Electric Expenses HEA O&M Contract 147,310 154,100 136,900 447,310 154,100 136,900 FERC 639 - Misc. Hydraulic Power Generation Exp HEA O&M Contract 104,504 149,000 93,700 30,800 DIS Voioce/Dala Circuits (inc. space & power) 107,453 109,200 i DIS 2-way Radio Circults & radio maint. 24,691 39,200 Other 1,467 0 238,115 FERC 540 - Rents 297,400 Bradiey Lake FERC land use fees (5% increase b 55,532 61,000 61,000 55,532 61,000 | 61,000 iz FERC 542 - Maintenance of Structures HEA O&M Contract 1,495 15,000 15,300 1,195 15,000 FERC 643 - Maintenance of Reservoirs, Dams & W | HEA O&A Contract 0 0 FERC 544 - Maintenance of Electric Plant HEA O&M Contract 221,081 221,081 FERC 646 - Maintenance of Misc. Hydraullc Plant 261,000 ~ 261,000 234,900 | _ HEA O&M Contract 75,794 99,000 85,600 16,400 102,000 | Misc. 82 0 0 coh t4 | oR 75,676 | ___99,000 85,600] ____16,400 s 702,000 fe Page 2 0f4 0% per mile increase 3% per mile Increase = Tree clearing 2/24/98/2:31 PM, 99 Bradley Budget.xis BRADLEY LAKE OPERATIONS & MAINTENANCE FY98 BUDGET FY98 CHANGE FY99 Ss FY97 REVISED FY98 FROM ‘98 PROPOSED ff ACTUALS PROJECTEO FERC 656 - System Control & Load Dispatching HEA O&M Contract 2,594 9,000 5,500 CEA Dispatch & Softwar 392 0 0 OF NOAA Weather Service 6,033 6,000 6,000 og SCS Snow Measurement 11,340 12,500 10,000 500 UAA Seismic monitoring 53,000 55,000 §5,000 0 USGS Streamgveging 119,260 120,000 131,530 6,545 USGS Minimum Flow Study 38,000 38,000 3 230,589 FERC §62 - Station Expenses CEA SVC/Substation Maintenance Contract 144,483 FERC 571 - Maintenance of Overhead Lines HEA Overhead Line Maintenance FERC 920 - Administrative Expense AEA Admin Fee 212,079 200,000 Workers comp refund AEA Administrative Costs 212,079 200,000 200,000 PMC Costs 4 Bradley Lake Audit fees 8,575 15,000 15,000 0 iam i Bradley Lake PMC Legal 59,142 30,000 100,000 (70,000) Base bi No refunding legal fees. Bradley Lake Arbitrage Repor 1,617 2,000 4,800 O Be Budget, recording, courier 1,960 0 0 0 Bradiey Lake Trustee fees 21,948 20,000 20,000 0 PMC Costs 93,442 67,000 136,800 (70,000) Bond Refunding Costs Pricing Stage 0 100,000 100,000 HE Reimbursed costs from Closing 0 250,000 ig 4/29 bond closing Refunding Costs 350,000 [ feo TOTAL FERC 820 305,525 FERC 924 - Property Insurance Bradley Lake PMC Insurance 7,783 6,600 i Insurance Premiums 260,252 267,000 264,076 Homer Electric insurance 28,226 35,000 26,300 RSA with Risk Management 19,225 19,200 $9,200 316,485] 329,700 317,576 | SE Page 3 of 4 2/24/98/2:31 PM, 99 Bradley Budget. xis BRADLEY LAKE OPERATIONS & MAINTENANCE FY98 BUDGET FY98 CHANGE FY97 REVISED Fys3 FROM ‘98 AGTUALS BUDGET | PROJECTED FERC 926 - Regulatory Commission Expenses FERC administrative fees 160,680 126,000 161,000 Contraciua} Engineer - Bradley FERC Lloensing 11,893 28,500 28,500 Reimb from Construction Fund (prior year) 5 Year Inspaction & Fotlow-up 34,102 154,500 | 169,500 2,068,037 | _2A37,200| 2,976,806 TOTAL BRADLEY LAKE BUDGET Page 4 of 4 2/24/98/2:31 PM, 99 Bradley Budget.xis BRADLEY LAKE BUDGET ACTIVITY BY ACCOUNT 6/30/98 Projected Balance FY99 Budget Revenues Interest Reimbursement for refu Transfers to O&M Transfers to Debt Servic 98 O&M Requisitions 99 Renewals/Repiaceme Debt Payments 1/1/99, 4/1/99, 7/1/99 6/30/99 Projected Balance Rey Fund O&M Fund Debt Fund Op Reserve R&C Cap Reserve Total . 4 2 417,440 §,000,009 13,392,880 18,810,342 13,843,836 13,843,836 1,699,979 1,699,979 232,440 117,560 350,000 (2,246,947) 2,246,947 O (13,494,308) . 13,494,308 S (2,246,947) (2,246,947) (35,000) (35,000) (13,494,308) (13,494,308) - 4 2 535,000 5,000,009 13,392,890 18,927,902 A A 0% of Annual O&M Budget 24% of Annual O&M Budgel Page 1 of 1 2/24/98/2:31 PM, 99 Bradley Budget.xis arses ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT ORIGINAL REVISED FY97 FY98 FY98 FY98 ACTUALS BUDGET BUDGET PROJECTED REVENUES, EXPENSES & CHANGES IN SURPLUS REVENUES UTILITY CONTRIBUTIONS 12,984,191 13,210,680 13,210,680 13,210,680 13,843,836 INTEREST INCOME 1,891,604 1,799,998 1,799,998 1,799,998 1,699,979 FROM (TO) OPERATING RESERVE FOR REFUNDING 117,560 117,560 (117,560) ADDITIONAL CONTRIBUTION FOR REFUNDING 148,385 115,967 AEA SETTLEMENT PRIOR YEAR CORRECTIONS SALE OF VEHICLE ; 5,329 5,000 TRANSFER FROM ARBITRAGE 0 14,881,124 15,010,678 15,276,623 15,244,205 15,431,255 EXPENSES OPERATIONS 2,066,837 2,087,200 2,087,200 2,026,806 2,246,947 RENEWALS/REPLACEMENTS 25,000 25,000 25,000 40,000 BOND REFUNDING COSTS 350,000 350,000 (350,000) DEBT SERVICE 13,390,560 13,389,435 13,389,435 13,389,435 13,494,308 TRANSFER TO ARBITRAGE 13,821 27,976 15,471,218 15,501,635 15,851,635 15,819,217 15,431,255 CURRENT YEAR SURPLUS (DEFICIT) (590,094) (490,957) (575,012) (575,012) BEGINNING SURPLUS 1,165,106 590,957 575,012 575,012 ENDING SURPLUS 575,012 100,000 0 0 BALANCE SHEET ASSETS REVENUE FUND 174,124 100,000 - - OPERATING FUND 778,487 - - - 952,611 100,000 - - LIABILITIES & SURPLUS LIABILITIES 377,599 : - SURPLUS 575,012 100,000 : : 952,611 100,000 5 - OTHER INFORMATION OPERATING RESERVE 535,000 535,000 417,440 _ 417,440 535,000 MONTHLY CONTRIBUTIONS 1,082,016 1,100,890 1,100,890 1,100,890 1,153,653 Page 1 of 6 3/19/98/4:48 PM, 99 Bradley Budget.xis BRADLEY LAKE MONTHLY UTILITY CONTRIBUTION PERCENT FY96 FY97 FY98 FY99 POWER PURCHASER SHARE TOTAL TOTAL TOTAL INCREASE CHUGACH ELECTRIC 30.4% 3,968,670 3,947,190 4,016,052 4,208,532 192,480 MUNICIPALITY OF ANCHORA 25.9% 3,381,203 3,362,902 3,421,560 3,585,552 163,992 AEG&T 25.8% 3,368,148 3,349,918 3,408,360 3,571,704 163,344 GOLDEN VALLEY ELECTRIC 16.9% 2,206,267 2,194,326 2,232,600 2,339,604 107,004 CITY OF SEWARD 1.0% 130,548 129,842 132,108 138,444 6,336 100.0% 13,054,836 12,984,178 13,210,680 13,843,836 633,156 PERCENT FY96 FY97 FY97 FY99 FY99 POWER PURCHASER SHARE MONTHLY MONTHLY MONTHLY MONTHLY INCREASE CHUGACH ELECTRIC 30.4% 330,723 328,933 334,671 350,711 16,040 MUNICIPALITY OF ANCHORA 25.9% 281,767 280,242 285,130 298,796 13,666 AEG&T . 25.8% 280,679 279,160 284,030 297,642 13,612 GOLDEN VALLEY ELECTRIC 16.9% 183,856 182,861 186,050 194,967 8,917 CITY OF SEWARD 1.0% 10,879 10,820 11,009 528 1,087,904 1,082,016 COMPONENTS OF INCREASE IN CONTRIBUTIONS FY98 ANNUAL CONTRIBUTION 13,210,680 DECREASE IN BUDGETED INTEREST EARNINGS 100,014 INCREASE IN BUDGETED O&M COSTS 159,747 INCREASE IN BUDGETED RENEWAL AND REPLACEMENTS (net of sale proceeds) 10,000 INCREASE IN DEBT SERVICE 104,873 REIMBURSEMENT OF BOND REFUNDING COSTS, NET OF REDEPOSIT TO OP. RESERVE (232,440) DECREASE IN BUDGETED USE OF PRIOR YEAR SURPLUS 490,957 ROUNDING 5 FY99 ANNUAL CONTRIBUTION 13,843,836 Page 2 of 6 3/19/98/4:48 PM, 99 Bradley Budget.xls BRADLEY LAKE OPERATIONS & M..... ENANCE FY98 BUDGET - SUMMARY HEA O&M Contract Total CEA Dispatch and Substation/SVC Maintenance Other O&M Insurance Costs Regulatory Costs Administrative Costs Bond Refunding Costs 661,215 144,875 433,066 315,485 206,675 47,000 466,230 317,576 189,500 CHANGE FROM '98 FY99 PROPOSED BUDGET 240,300 910,000 0 47,000 511,447 322,200 189,500 1,761,316 305,521 2,066,837 2,066,837 Page 3 of 6 1,690,006 336,800 2,026,806 350,000 290,141 — = 17% 1,980,147 (70,000) Fe =247 266,800 220,141 L% 2,246,947 (700,000) f= (350,000) 2,376,806 (479,859) 7 1,896,947 3/19/98/4:48 PM, 99 Bradley Budget.xls BRADLEY LAKE OPERATIONS & Maint ENANCE FY98 BUDGET ; FERC 535 - Operation Supervision & Engineering HEA O&M Contract Other FERC 537 - Hydraulic Expenses HEA O&M Contract FERC 538 - Electric Expenses HEA O&M Contract FERC 539 - Misc. Hydraulic Power Generation Exp HEA O&M Contract DIS Voice/Data Circuits (inc. space & power) DIS 2-way Radio Circuits & radio maint. Other FERC 540 - Rents Bradley Lake FERC land use fees (5% increase b FERC 542 - Maintenance of Structures HEA O&M Contract FERC 543 - Maintenance of Reservoirs, Dams & W HEA O&M Contract FERC 544 - Maintenance of Electric Plant HEA O&M Contract FERC 545 - Maintenance of Misc. Hydraulic Plant HEA O&M Contract Misc. CHANGE Fy99 FY97 FY98 FROM '98 PROPOSED ACTUALS | PROJECTED | PROJECTED BUDGET 99,821 89,900 13,600 103,500 99,821] 89,900] _13,600 | 8,916 9,600 tities 8,916 9,600 147,310 136,900 12,100 147,310] 136,900[ __12,100 | 104,504 93,700 124,500 107,453 107,500 135,634 24,691 37, sm 44,188 1,467 0 238,115 238, <0 MI S:922 8 304,322 55,532 61,000 3,050 64,050 55,532| 61,000] —_3,050 | 64,050 1,195 120,700 136,000 1,195 136,000 0 : 0 300 7,700 221,081 263,000 221,081 263,000 75,794 85,600 ! % 102,000 82 0 0 75,876 102,000 Page 4 of 6 3/19/98/4:48 PM, 99 Bradley Budget.xls BRADLEY LAKE OPERATIONS & Mi... ENANCE FY98 BUDGET FERC 556 - System Control & Load Dispatching HEA O&M Contract CEA Dispatch & Softwar NOAA Weather Service SCS Snow Measurement UAA Seismic monitoring USGS Streamguaging USGS Minimum Flow Study FERC 562 - Station Expenses CEA SVC/Substation Maintenance Contract FERC 571 - Maintenance of Overhead Lines HEA Overhead Line Maintenance FERC 920 - Administrative Expense AEA Admin Fee Workers comp refund AEA Administrative Costs PMC Costs Bradley Lake Audit fees Bradley Lake PMC Legal Bradley Lake Arbitrage Report Budget, recording, courier Bradley Lake Trustee fees PMC Costs Bond Refunding Costs Pricing Stage Closing Refunding Costs TOTAL FERC 920 FERC 924 - Property Insurance Bradley Lake PMC Insurance Insurance Premiums Homer Electric Insurance RSA with Risk Management FERC 928 - Regulatory Commission Expenses FERC administrative fees Contractual Engineer - Bradley FERC Licensing Reimb from Construction Fund (prior year) 5 Year Inspection & Follow-up TOTAL BRADLEY LAKE BUDGET CHANGE FY99 FY97 FY98 FROM '98 PROPOSED ACTUALS | PROJECTED} PROJECTED BUDGET 2,594 3,500 5,500 9,000 392 0 0 0 6,033 6,000 0 6,000 11,310 10,000 500 10,500 53,000 55,000 55,000 119,260 131,530 138,075 38,000 38,000 38,000 230,589 244,030 256,575 144,483 47,000 47,000 144,483 47,000 47,000 16,238 20,000 20,000 16,238 20,000 20,000 212,079 200,000 0 200,000 212,079 200,000 200,000 8,575 15,000 0 ( 15,000 59,142 100,000 (70,000) 30,000 1,817 1,800 1,800 1,960 0 0 fc 0 21,948 20,000 / 20,000 93,442 136,800 (70,000) | = 66,800 0 100,000 (200,000) (100,000) 0 250,000 (500,000) | (250,000) 350,000 (700,000) (350,000) 305,521 686,800 (770,000) e (83,200) 7,783 8,000 8,000 260,252 264,076 924 265,000 28,225 26,300 2s 30,000 19,225 19,200 ; j 19,200 315,485 160,680 11,893 34,102 206,675 2,066,837 317,576 322,200 161,000 161,000 28,500 28,500 0 0 189,500 189,500 [sd 2,376,806 ; 1,896,947 Page 5 of 6 3/19/98/4:48 PM, 99 Bradley Budget.xls BRADLEY LAKE BUDGET ACTIVITY BY ACCOUNT ‘ Rey Fund O&M Fund Debt Fund Op Reserve R&C Cap Reserve Total 6/30/98 Projected Balance - A 2 417,440 5,000,009 13,392,890 18,810,342 FY99 Budget - Revenues . 13,843,836, . 13,843,836 Interest 1,699,979 1,699,979 Reimbursement for refun 232,440 117,560 350,000 Transfers to O&M (2,246,947) 2,246,947 - Transfers to Debt Servic (13,494,308) 13,494,308 - 99 O&M Requisitions (2,246,947) (2,246,947) 99 Renewals/Replaceme (35,000) (35,000) Debt Payments 1/1/99, 4/1/99, 7/1/99 (13,494,308) (13,494,308) 6/30/99 Projected Balance - fl 2 535,000 5,000,009 13,392,890 18,927,902 A A 0% of Annual O&M Budget 24% of Annual O&M Budget Page 6 of 6 3/19/98/4:48 PM, 99 Bradley Budget.xls AUDITED FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS JUNE 30, 1997 AND 1996 A Professional Corporation AUDITED FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS JUNE 30, 1997 AND 1996 Audited Financial Statements BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS Anchorage, Alaska Page Independent Auditor's Report 1 Balance Sheets 2 Statements of Revenue, Expenses and Changes in Surplus 3 Statements of Cash Flows 4 Notes to Financial Statements 5-8 Independent Auditor's Report on Additional Information 9 Statements of Expenses 10-11 A Professional Corporation Certified Public Accountants 3301 C Street, Suite 520 Anchorage, Alaska 99503 Tel. (907) 563-4547 FAX (907) 561-7683 Independent Auditor's Report Bradley Lake Project Management Committee Anchorage, Alaska We have audited the accompanying balance sheets as of June 30, 1997 and 1996, and the related statements of revenues, expenses and changes in surplus and of cash flows for the years then ended, of the Bradley Lake Project Management Committee Operating and Revenue Funds (a project management committee). These special purpose financial statements are the responsibility of the Bradley Lake Project Management Committee. Our responsibility is to express an opinion on these special purpose financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. The accompanying special purpose financial statements were prepared to present revenue and expenses on an accrual basis with the exception of interest income, which has been presented on a cash basis in order to conform to the fiscal year operations and maintenance budget. In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities and surplus of the Bradley Lake Project Management Committee as of June 30, 1997 and 1996 and its revenue, expenses and changes in surplus and cash flows for the years then ended, in conformity with generally accepted accounting principles. This report is intended for the information and use of the Bradley Lake Project Management Committee and should not be used for any other purpose. ie LI WANA, be (ie fPPC— Parisena, Stromberg & Company, APC Anchorage, Alaska November 6, 1997 BRADLEY LAKE | __)JECT MANAGEMENT COMMY =E OPERATING AND REVENUE FUNDS BALANCE SHEETS June 30, 1997 and 1996 ASSETS Current assets: Investments (Note B) Total Assets LIABILITIES AND SURPLUS Current liabilities: Due to AIDEA Accounts payable Total Liabilities Surplus: Unreserved Total surplus Total liabilities and surplus See accompanying notes to the financial statements. 1997 $ 125,256 ——252.342 — 371.598 1996 $ 107,427 —— 288.223 —— 395,650 BRADLEY LAKEP JECT MANAGEMENT COMMIT OPERATING AND REVENUE FUNDS = £ STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN SURPLUS ' YEARS ENDED June 30, 1997 and 1996 eS | s a 1996 Budget Actual Variance Actual Revenue: Utility contributions $ 12,984,178 $12,984,191 $ 13 $ 13,054,836 Interest receipts 1,841,500 1,891,604 50,104 1,924,479 Arbitrage refund - - - 25,465 Miscellaneous income = 5.328 5.328 - Total revenue 14,825,678 14,881,123 55,445 15,004,780 Expenses and debt service: Operations and maintenance 2,060,767 2,080,658 (19,891) 2,285,453 Interest payments 10,220,560 10,220,560 - 10,415,725 Principal payments 3.170.000 3.170.000 - _ 2,975,000 Total expenses and debt service 15,451,327 15.471.218 (19.891) 15,676,178 Excess (Deficiency) of revenue over expenses and debt service —(625.649) _ (590.095) ___35.554 ___(671.398) Surplus, beginning of year 1,165,107 1.836.505 Surplus, end of year $575,012 $1,165,107 See accompanying notes to the financial statements. BRADLEY LAKE] )JECTMANAGEMENT COMMY E OPERATING AND REVENUE FUNDS STATEMENTS OF CASH FLOWS YEARS ENDED June 30, 1997 and 1996 1997 1996 Cash flows from operating activities: Excess (deficiency)of revenues over expenses and debt service $ (590,095) $ (671,398) Adjustments to reconcile excess of revenues over expenses and debt service to net cash provided by operating activities: Decrease in accounts payable (35,881) (89,783) Increase (decrease) in amounts due to AIDEA 17,829 (215,644) (Increase) decrease in amounts due from AEA - 34,903 (Decrease) increase in amounts due to Construction Fund - 16.760 Net cash provided by operating activities (608,147) (925,162) Available cash and cash equivalents at beginning of year 1.560.757 2.485.919 Available cash and cash equivalents at end of year $ 952.610 $1,560,757 Supplemental disclosure of cash flows information: Interest paid $10,220,560 $10,415,725 See accompanying notes to the financial statements. 4 BRADLEY LAKE] )JECT MANAGEMENT COMMI) E OPERATING AND REVENUE FUNDS NOTES TO FINANCIAL STATEMENTS June 30, 1997 and 1996 NOTE A: SIGNIFICANT ACCOUNTING POLICIES Description of Business: The Bradley Lake Project Management Committee (the Committee) was established pursuant to Section 13 of the Agreement for the Sale and Purchase of Electric Power (Power Sales Agreement) dated December 8, 1987. The purpose of the Committee is to arrange for the operation and maintenance of the Bradley Lake Hydroelectric Project, which became operational in September 1991, and the scheduling, production and dispatch of power. The members of the Committee include the Alaska Energy Authority (AEA) and the five purchasers under the Power Sales Agreement - Chugach Electric Association, Inc.; Golden Valley Electric Association, Inc.; the Municipality of Anchorage (Municipal Light & Power); the City of Seward (Seward Electric System); and the Alaska Electric Generation & Transmission Cooperative, Inc. (AEG&T). The Homer Electric Association, Inc. (HEA) and the Matanuska Electric Association, Inc. (MEA) are additional parties to the Power Sales Agreement but are included as power purchasers for purposes of representation while AEG&T has no direct vote as a consequence of the individual representation of HEA and MEA. Section 13 of the Power Sales Agreement delineates other Committee responsibilities, including: establishing procedures for each party's water allocation, budgeting for annual Project costs and calculating each party's required contribution to fund annual project costs. Committee approval of operations and maintenance arrangements for the Project, sufficiency of the annual budgets and wholesale power rates and the undertaking of optional Project work requires a majority affirmative vote and the affirmative vote of AEA. The Power Sales Agreement extends until the later of: 1) 50 years after commencement of commercial operation or 2) the complete retirement of bonds outstanding under the AEA Power Revenue Bond Resolution along with the satisfaction of all other payment obligations under the Power Sales Agreement. Renewal options for additional terms exist. Establishment of Trust Funds: Article V, Section 502 of the Alaska Energy Authority's Power Revenue Bond Resolution established a Revenue Fund and an Operating Fund, including an Operating Reserve account, to be held by AEA. In actuality these funds, along with the Debt Service, Excess Investment Earnings (arbitrage), and various construction funds related to the Bradley Lake Hydroelectric Project are all held by the Corporate Trust Department of Seattle- First National Bank in Seattle, Washington. BRADLEY LAKE] )JECTMANAGEMENT COMMIT E OPERATING AND REVENUE FUNDS NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1997 and 1996 NOTE A: SIGNIFICANT ACCOUNTING POLICIES (Continued) All deposits, including utility contributions and interest earnings, are made into the Revenue Fund, which transfers amounts approximately equal to one-twelfth of the annual operating and maintenance budget into the Operating Fund on a monthly basis. Additional transfers are made from the Revenue Fund to the Debt Service Fund in order to satisfy semiannual interest payments and annual principal payments on the Project's outstanding bonds payable. Interest earnings available for operations and maintenance are derived from the following funds: Debt Service Fund; Operating Reserve Fund; Operating Fund; Revenue Fund; Capital Reserve Fund; and the Renewal & Contingency Fund. Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expense during the reporting period. Actual results could differ from those estimates. Revenue and Expense Recognition: Utility contributions are recognized as revenue when due to be received under the terms of the Power Sales Agreement. Transfers from other funds are recognized when the transfer is made and interest earnings are recognized when received. Operating and maintenance expenses are recognized when incurred, while interest and principal payments on bonds are recognized when paid. Income Taxes: The Bradley Lake Project Management Committee is exempt from income taxation under Section 501 (a) of the Internal Revenue Code. NOTE B: INVESTMENTS Substantially all of the balances in the following funds are invested in collateralized investment agreements through the trust department of Seattle-First National Bank. The specified interest rate for monies from the Operating and Revenue Funds invested in the agreements is 7.38%. Balances at June 30, 1997 and 1996 are as follows: 1997 1996 Operating Fund $ 778,486 $ 660,152 Revenue Fund 174,124 900.605, Total investments $ 952.610 $ 1.560.757 BRADLEY LAKEP JECT MANAGEMENT COMMIT E OPERATING AND REVENUE FUNDS NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1997 and 1996 NOTE B: INVESTMENTS (Continued) Investments are sold as needed to cover operating requisitions submitted to the trustee and are therefore considered to be short-term and available for sale. Investments are presented at aggregate cost, which approximates market value. For purposes of the cash flow statements, management considers the full amount of the investment balance to be cash available for operations. NOTE C: MAJOR CONTRACTS AND AGREEMENTS During May 1994, the Alaska Energy Authority entered into the Master Maintenance and Operating agreement with the Committee. The purpose of the agreement is to establish contract administration and budgeting procedures for maintenance and operation contracts of the Bradley Lake Hydroelectric Project and to provide for the lease or other use of facilities and equipment in a manner consistent with the requirements of the Power Sales Agreement. The term of the Master Agreement is indefinite, remaining in effect until termination of the Power Sales Agreement or until AEA no longer legally exists. This agreement authorizes AEA to enter into any contracts necessary to perform operating or maintenance-type services to the Project, subject to the approval of the Committee. On behalf of the Committee, the Alaska Energy Authority entered into an agreement with Chugach Electric Association, Inc. (CEA) in August, 1996, for the provision of all services necessary to dispatch the Bradley Project's electric power output. Terms of the contract specify that payment shall be made to CEA for direct personnel costs, training and the costs of computer software used for dispatching Project output. The dispatch agreement runs concurrently with the wheeling and related services contract entered into by and among the parties to the Power Sales Agreement in December 1987 and remains in effect for the term of the wheeling agreement unless CEA ceases to be the output dispatcher. In August 1996, the Alaska Energy Authority entered into an agreement with Chugach Electric Association, Inc. on behalf of the Committee for the provision of maintenance services for the Daves Creek and Soldotna SVC Substations. BRADLEY LAKE )JJECTMANAGEMENT COMMI — ‘E OPERATING AND REVENUE FUNDS NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1997 and 1996 NOTE C: MAJOR CONTRACTS AND AGREEMENTS (Continued) An operation and maintenance agreement dated February 11, 1994, was executed between Homer Electric Association and the Alaska Energy Authority. This agreement provides for the operation and maintenance of the Bradley Lake Hydroelectric Project by Homer Electric Association for an initial term of five years, commencing February 11, 1994. The agreement continues from year to year thereafter, except upon written notice to terminate by either party. Notice of termination must be given one year in advance of the termination date. HEA is to be reimbursed for costs associated with the operation, maintenance and repair of the Project as determined in advance through the submission of an annual budget based upon prudent estimates and anticipated operation and maintenance costs. In August, 1996, the agreement was amended to separate the maintenance of the transmission facilities from the hydroelectric project. The transmission agreement continues from year to year, except upon written notice to terminate by either party. Notice of termination must be given six months in advance of termination dates. NOTE D: RELATED PARTY TRANSACTIONS During the years ended June 30, 1997 and 1996 the Committee paid the following amounts to related parties for costs incurred under the various contracts described in Note D: 1997 1996 Homer Electric Association - operation and maintenance $ 703,701 $ 825,680 Chugach Electric Association - dispatch services $ = $ 99,814 Chugach Electric Association - substation service maintenance $ 146,694 $ 112,246 For the year ended June 30, 1997, Chugach Electric Association provided dispatch services to the Committee for no charge. A Professional Corporation Certified Public Accountants 3301 C Street, Suite 520 Anchorage, Alaska 99503 Tel. (907) 563-4547 FAX (907) 561-7683 INDEPENDENT AUDITOR'S REPORT ON ADDITIONAL INFORMATION Bradley Lake Project Management Committee Operating and Revenue Funds Anchorage, Alaska Our report on our audits of the special purpose financial statements of the Bradley Lake Project Management Committee Operating and Revenue Funds for June 30, 1997 and 1996, appears on the page preceding the balance sheets. Those audits were made for the purpose of forming an opinion on the special purpose financial statements taken as a whole. The supplemental Statements of Expenses are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the special purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the special purpose financial statements taken as a whole. J Zire, Lroreldg = Cnnpors ft Parisena, Stromberg & Company, APC Anchorage, Alaska November 6, 1997 BRADLEY LAKE PRC (CT MANAGEMENT COMMITTI OPERATING A.wu REVENUE FUNDS STATEMENTS OF EXPENSES June 30, 1997 and 1996 Expenses: Generation expense: ma Ee see Budget Operation supervision and engineering: Contractual Hydraulic operation: Contractual Electric plant operation: Contractual $ 139,000 —— 25.000 149.1 Hydraulic power generation operation: Contractual Rents: Contractual Structure maintenance: Contractual Reservoir, dam, and waterway maintenance: Contractual Electric plant maintenance: Contractual Hydraulic plant maintenance: Contractual System control and load dispatching: Contractual Substation operation and maintenance: Contractual Overhead line maintenance: Contractual Continued 293.700 65.000 —— 21.000 —___16.000 —— 332.200 —— 21.000 —— 287.500 10 Actual 147.310 Variance Favorable 1996 (Unfavorable) Actual $ 107.658 BRADLEY LAKE PRO) °T MANAGEMENT COMMITTE OPERATING AND REVENUE FUNDS STATEMENTS OF EXPENSES (Continued) June 30, 1997 and 1996 109 ee Variance Favorable 1996 Budget Actual (Unfavorable) Actual Administrative, general and regulatory expense: Insurance $ 358,075 $ 315,485 $ 42,590 $ 323,605 Administration 212,079 212,079 - 275,000 Contractual 68,000 93,442 (25,442) 114,847 Regulatory commission: Five-year inspection 65,000 28,900 36,100 6,783 FERC administrative fees 110,000 160,680 (50,680) 116,029 FERC licensing 28,500 11,893 16,607 27,099 Inspection follow-up 20,000 5,202 14,798 - Arbitrage expense - 13,821 CSS 2)) tere Total administrative, general and regulatory expense 861.654 £41,502 . 20.152 | 8633363 Total operating and maintenance expenses $2,394,154 $_2,080,658 $313,496 $_2.285.453 11 BPML Mk. 2fae/al 10:00 a.m. @ CEA Beard heomm Ab. HM. Minutes fa Dee. 1 1497 : Motion — Men Dee. 10, 197] Re Stead Rec. 12, (997 ” Se Wines A. Shs ot Cigerahiee + Carrol Response. Projet | 1996 -Deblenmd— - totic Ver Contgenerlou thee Ose lating ~ One Arwen Comin io se Dyodleg .. Hig /- Bend yf Leto; Lew... Apprord Uren - Hichiey { Comeniaiimige aer ds uted hofkpered-of fier | 2 reve allt Lyf Poot A ee Ose latipn .. Crm Modifieakio — Loadl shed. bd ws blelirst SWECY PTL. PSoe Lh ees S95 Tem Nakherg - Cy-Chith Ne-crosts. ~ pert tne unebebA, _. C Segre protlermn- pa~é Lor the. ofierm ie stebre- ~ Cop, 4 [Velen Action Plan. (Hake 3) oe le dati Ts he~Craee : Str a oe tool fos rnb bs cane pascal + owks pb weld , AI owt perdi te cle . ae pies Hine — Df ti lag Porte tp ALES wee, — & frtnre Chon (Ze Hick, — Crick pred... ye" 0 seems ~ hel bpeibl | seco Criikee - — bello tract tn dy te -tine.£ ‘+ Gets in = Brosh 27 Kl ~ lreeh Piers Hed - pee ape + ava le per a/2/aP- pial me vnc “ig frye will Hak Cre It. D ? Teli ace wee Coe becklletup Seog A; Fomeek.§ QL eycline fore relied 7 thay Ca—ltemse Narre biden IN Teerwow « Svxll osc lation intunned - Conde be “teeing” : pene haope Vee ff rs P laxk - i VA yo ue to alah = Phyercok elation pelt - - ALE He. probe ow: mt nt Pier. LEEE Steordak ete Cnr Cor Ld. hoa 1S-(E AW . Mega heated pork ow OY, UV/ syle AL pene thiyes Te aby — 6 preebhe Ob Lar o Tamesbe~ Lope 2 fiat , V cpar » Chee 3e MW podhe Ste wen. MW legen pw I peep Cvrk — Charge ty Cempe ~ V - Qe cL H ge sen Ac ) / Und Teng Overepeas _10'.20 Bem Hold — yor wWarBok, the ye Hah ’ te ‘bedliey is Hob enroth 7 Vee. ~ Drice- Aad itipnek testo 10, O80 > — eaiclorch fm rede Teen» ee — Rapadur chee = Ril py PLAC ke ei tle ¢ Bove +0 whateenle Row onquig Bradley, hohe‘ will rere bscene aE Me Came - Se Here Was he ATMs Be. — Shad we le sotistied © Ber Ona 4 A ste Tad 805 Qrez He t toernal ia Vow cond ged fa Ta the~ 30 SaemLl rod le oper" 10). emptid pub the snglue - hove Mod. pel trae Cheaurg - to mont ea goaroted, © as a oprsetioas gong #. Dell sori gore I : xin all © ete es phere, KER - thuck , 3 ye: Plo, ae a AAD fervic » OFM adeLak - Xo, 00 16-35, coe 4¢ 72, 00? Fran Close, ~ (25,000 OLM Cote pouily s¢1% , ams. Caste tel, hock Tine othe c£A ~ *Y 70M CP ya to can, ted Daal © Aehete, CHA dispel, E lave purely Sue state madd. D+” Ban 4 Bred. hefenby ent frdidhe curred goor: Cn 7 Lae Bd frend proesed : | Aste 05 t . Crave — Yeo- YN a tel, "200 ow -Cherge Cablem— FY OP pawkidh [FY 98 preyed will be ¥ 8,000 5 bork. ee ren Tee Ne aaa 590, 0P) - (7 575, gov - ety} F 35,000 unller hedge moth. Motionr Cae PN ene nece Call p- He. Cham: ae Ve Evbeh © [20 ALASKA INDUSTRIAL DEVELOPMENT * AND EXPORT AUTHORITY {= ALASKA Ee =ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA Friday, March 20, 1998 — 10:00 a.m. Chugach Electric Association — Board Room 5601 Minnesota Drive iis CALL TO ORDER a Bjornstad 2. ROLL CALL (for Committee members) a 3. PUBLIC ROLL CALL (for all others present) a 4. PUBLIC COMMENTL ~~ 5. AGENDA COMMENTS 1 6. APPROVAL OF MEETING MINUTES — December 9, 1997 ~ December 10, 1997 “~ December 12, 1997 ~~ 7. NEW BUSINESS A. Status of Instability and Control Response Project Hickey A B. Request to Increase Funding to Continue Studies “a Associated with Project Hickey C. FY 99 Project Budget Evans/McCambridge ,~~ D. Revisions of the FY 98 Project Budget Evans/McCambridge a 8. COMMITTEE COMMENTS A. Next Meeting Date Bjornstad al So; ADJOURNMENT S) o/b Bre, Mey. ee AcA CEA Prod Re. ay iw ae » MEA a CHy ot Cue ye oe ACA _ am reed Gousld;, AEA Y\anr— Hick Cel A eb ofan! AéG4T Vas MGrnbridge, AGA ey Hebler-, MUP Ge preted. CEA A eee AEA Adon 1 Hey Lande = /_ hee. Theiler, CEA 2 Helmick , “Mist? is reniey UgA — "Rep eye Story Mike eres a bbe Cariffith : BM ee Mohan tn. MLLP Hee aes telly , CEA - Arrive (0:l0 Bradley Lake PROJECT MANAGEMENT COMMITTEE MEETING WMirelh—O 1998 (Date) ( i i gre f Ye Vt ad ! pT oa PLEASE SIGN IN No. NAME REPRESENTING 92Q2\IT9884 Bradley Lake PROJECT MANAGEMENT COMMITTEE MEETING (Date) (Location) PLEASE SIGN IN No. NAME | REPRESENTING 92Q2\IT9884 : —Shafet Bi 10:00 ans es e@eCZe. ee hace 3 : aes +H Atty Minutes Ms Hise Scie AS Ses Wess Dee. 2 ng? Aton ge lag ei og Dee. 10 le ania 7 Nee Thien ba 2 te pene Mea NS | A. Ce ib ihe 1 1996 deat a. Ibis Posie Oxeilleding —- SheC# PTE. PSs fie sit nile ull NEE 7 ‘plib repel sacle sia ©: ee Copy. 4 Metin 1 Action Hig dele i E ! ar Jane te Aen-creity - Wkeemdas— high, pete | sarthte corbide — oe to ty et in do the tine ae Cuts hex - j fbr ‘will fights. TED £3 ina se ea oe tl Sl ane fo sith te - Cpl ashes hope hoeperae of las: ee Phyercok lates Points z ALG Tie iaseckle pi cz Unt mat pier. TEEE Spordanb 2h | ei Cth bea /5-(6 MW . ee aioe ens os vescasi erties tite ae ee a pee ae Brien Gaga tectins cane on the tettnlin Motion = Mere are Kelly bSaqre- Brio ould 4, be TC) Denne — pesvisit Jupdile Carektacton Soh. @ Hy. tity Lente lopche 5 tS of HEA ~ Cone tle do Lave ta ths At deve — ef ee A position whew CEA is waking chepu[phod. ye porstictnes BIR - treck, ByaPlomy SCADA Lpup =. AAA Aerize. OFM deLat - "U0, God _4E35, 000. : 16 70 0b | Aha Cppe', ~ 125,000 OFM cot? favily shh , athena Casfe stabh Boek We te Onan Ym APL We gos, To CaMNy phe pre. Mike kealt, “an 000 -Chorg Cab FY 2 fameah (FY pre Elawe = hee Charges will be ¥ 36,000 Neyh ein Cosh Comers bok, : %) Lanna hisded +o rani bedegh appeal tf pec te faith nefemdlin cach, Fcedy ne b60, DOD ()-t00_ ovDd Haty poe Mae fell (ras Stor @, 20% BN Pi OOD vs. 350 ovd aL har-res ae 350, ood a oe ‘tetheesliee a a = ae Tebceca eme aenrat Aetyehe—- 1297 vtilre Bim 540, 0Pt.- (8a S175 gOv.- [eoraces E35, 000 wider held rm tetl. Qecyh Pr [farsen“keped Motion Carron Aik kother Wey. Mts. Dot — | CAM ge the Chex: ps Evld @ [Yi20 Yeh Piety BRADLEY PMC VOTING DATE: Agenda Item No. HZ. .=-= (olColl — arocpvaes YES NO ABS YES NO ABS YES NO ABS CITY OF SEWARD 01% Eero] MATANUSKA ELEC ASSOC 14% (Aaa Pe | a | CHUGACH ELEC ASSOC 30% [Zo Peet] ESR] HOMER ELEC ASSOC 12% HA Pere] GOLDEN VAL ELEC ASSOC 17% | HW Ee] Po | MUNI LIGHT & POWER 26% PEE] Per ALASKA ENERGY AUTHORITY ZE rer ee) 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 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) 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. 12) 13) 14) 15) 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% BRADLEY PMC VOTING DATE: YES NO ABS YES NO ABS YES NO ABS 0% EATS | Eee] Leek w6 [Jes] Eber) Ed 30% [22 EPS] | | 12% Per =] 17% Foe] La] 26% [_[ J Ex [ee] P| = | 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 DATE: YES NO ABS vES ans YES NO ABS 01% Pel 14% Eel 30% [eT] | 6S) Eee 12% | PT 17% FoRe] 26% q P|) ESE Eee 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