HomeMy WebLinkAboutBPMC Meeting - September 21 1990 210.
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12.
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ROZLT- may BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE
SEPTEMBER 21, 1990 AGENDA
CHUGACH ELECTRIC TRAINING ROOM
Revised 9/17/90
CALL TO ORDER 9:30 A.M.
ROLL CALL
PUBLIC COMMENT
MODIFICATION OF AGENDA
APPROVAL OF MINUTES July 17, 1990
BOND FINANCE TEAM REPORT
TECHNICAL COORDINATING SUBCOMMITTEE REPORT
INSURANCE SUBCOMMITTEE REPORT
BUDGET SUBCOMMITTEE REPORT
a. AEA Administrative and General Expenses
b. CEA Dispatching Costs
OPERATING AND DISPATCH AGREEMENT SUBCOMMITTEE REPORT
REVIEW OF PROJECT STATUS
OLD BUSINESS
NEW BUSINESS
a. Future Utilities Costs Reimbursement
b. Schedule Next Meeting
Date, Location, Time
COMMUNICATIONS
ADJOURNMENT
FILE Copy
Kelly
LeResche
Burlingame
Saxton
Ritchey
Shira
Eberle
Saxton
neCORD VOPY FILE NO
PRO 3-\,1 MIN
/ 9/21)40
BRADLEY LAKE
ALLOCATION AND SCHEDULING PROCEDURES
OVERVIEW
Presented At:
Bradley Lake Project Management Committee
September 21, 1990
PURPOSE
¢ SETS RULES OF OPERATION
ESTABLISHES METHOD OF ENERGY
ACCOUNTING
SPECIFIES PARTIES' RESPONSIBILITIES
¢ BRINGS OTHER AGREEMENTS TOGETHER
ALLOWS FOR FLEXIBILITY WHILE
MAINTAINING EQUITY
GENERAL
FORM - "PROCEDURES" VS. "AGREEMENT"
EFFECTIVE DATE - DATE OF COMMERCIAL
OPERATION
PROJECT YEAR - JUNE 1 THROUGH MAY 31
COMMODITY ALLOCATED/ISCHEDULED - ENERGY
STRIVES FOR RESERVOIR REFILL
STRIVES TO MAXIMIZE ENERGY GENERATION
RESERVOIR OPERATION MODEL
DEVELOPED BY STONE & WEBSTER
OPERATED BY AEA
INPUTS:
KNOWN SNOWPACKIWATER CONTENT
EXPECTED PRECIPITATION
UTILITY PROJECT REQUIREMENTS
MANDATORY RELEASES
OUTPUT:
EXPECTED PROJECT ENERGY
EXPECTED RESERVOIR LEVELS
INITIAL ENERGY ALLOCATION
SCHEDULE OF EVENTS
RESERVOIR INITIAL EXPECTED OPERATIONS ENERGY MONTHLY oo (REVISIONS ESTIMATE USE Pega AS REQUIRED)
y | 1 UTILITIES MAINTENANCE SCHEDULE
3/1 4/15 5/1 5/15 6/1
ALLOCATION OF ENERGY
INITIAL
* PRIOR TO PROJECT YEAR
* NET ALLOCATION BASED ON:
KNOWN SNOWPACK
80% LONG-TERM AVERAGE OF MAY-OCT
PRECIPITATION
PURCHASERS' EXPECTED ENERGY USAGE
REVISED
« CHECKED MONTHLY BY AEA
(MORE FREQUENTLY IF REQUIRED)
¢ ALLOCATIONS REVISED ONLY IF CHANGE > 15 GWH
¢ INITIAL ALLOCATION NOT CHANGED UNLESS
DECREMENTAL CHANGE
¢ IF ANNUAL ENERGY EXPECTED TO BE 90% OR LESS
OF PREVIOUS ESTIMATES, MEET
PROJECT SCHEDULING
SUBMITTED TO DISPATCHER BY 5:00 PM THURSDAY
FOR FOLLOWING WEEK (SUNDAY - SATURDAY)
MINIMUM COMBINED SCHEDULE - 10.0 MW
IF SCHEDULE > CAPABILITY, REDUCED PRO RATA
WEEKLY SCHEDULES FIRM UNLESS FORCED
OUTAGE
CANNOT SCHEDULE MORE THAN NET ALLOCATION
OVERSCHEDULING?
OPERATION
¢ CEA IS DISPATCHER
¢ DISPATCH AGREEMENT BEING NEGOTIATED
(AEA!CEA)
PROJECT SPILL
¢ DEFINED TO BE IN EXCESS OF MANDATORY
RELEASES
¢ CONVERTED TO ENERGY BY AEA
* ALLOCATED TO THOSE WITH POSITIVE NET
ALLOCATION (PONDING WATER)
« AEA CAN DECLARE IMMINENT SPILL AND OPERATE
ACCORDINGLY
LOSSES
* IN KIND, WITH NO MONETARY COMPENSATION
* PROJECT TRANSMISSION:
TO BE DETERMINED PURSUANT TO LOAD FLOW
STUDIES
¢ HEA SYSTEM:
LOAD FLOW STUDIES
MATRIX OF LOSS FACTORS
WITH AND WITHOUT PROJECT
VARIOUS LOAD LEVELS
OTHER OPERATING CRITERIA
¢« CEA SYSTEM:
PURSUANT TO SERVICES AGREEMENT
SPINNING RESERVES
« ALLOCATED PRO RATA (% PROJECT SHARE) NET OF
A PURCHASER'S SCHEDULED GENERATION
¢ IF AVAILABLE DUE TO OPERATION OF THERMAL
UNIT, AMOUNT ALLOCATED PRO RATA ON
PURCHASER'S CONTRIBUTION OF THERMAL
REMAINING WORK
RESERVOIR OPERATION MODEL
LOSSES
DETERMINATION OF SPINNING RESERVES
OPERATING MODE
OVERSCHEDULING/COMPENSATION
RECORD VOPy ' FILE NO
PRO 3-1 my
ALASKA ENERGY AUTHORITY ely
RESOLUTION NO. 90-10 -
A SUPPLEMENTAL RESOLUTION AUTHORIZING
THE ISSUANCE, SALE AND DELIVERY OF
$60,259,015.10 POWER REVENUE BONDS, SECOND SERIES
(BRADLEY LAKE HYDROELECTRIC PROJECT),
AND DETERMINING RELATED MATTERS
BE IT RESOLVED by the Board of Directors of the
Alaska Energy Authority on the 25th day of July, 1990, that
pursuant to the Power Revenue Bond Resolution adopted on
September 7, 1989, (hereinafter referred to as the
"Resolution"), this Supplemental Resolution is adopted as
follows:
ARTICLE I
Definitions and Authority
101. Sh i: - This Resolution may hereafter be
cited by the Authority, and is hereinafter sometimes referred
to, as the "Second Series Resolution".
102. Definitions. (a) All defined terms contained
in the Resolution shall have the same meanings, respectively,
in this Second Series Resolution as such defined terms are
given in Section 102 of the Resolution.
(b) In addition, as used in the Second Series
Resolution, unless the context shall otherwise require, the
following terms shall have the following respective meanings:
"Accreted Value" shall have the meaning such defined
term is given in Section 204.
"Bond Insurer" shall mean Municipal Bond Investors
Assurance Corporation, a stock insurance company incorporated
under the laws of the state of New York, and any successor
thereto.
"Bonds" or "Second Series Bonds" means the Bonds of
the Authority of the Series authorized by this Second Series
Resolution and herein designated "Power Revenue Bonds, Second
Series".
"Capital Appreciation Bonds" means the Bonds maturing
on July 1, 2006, 2007, 2008, 2009 and 2010.
"Current Interest Bonds" means the Serial Bonds and
the Term Bonds.
"Municipal Bond Insurance Policy" shall mean the
municipal bond insurance policy issued by the Bond Insurer
pursuant to the commitment to provide insurance approved in
Section 701.
"1985 Indenture" means the Indenture dated as of
October 1, 1985, securing the Variable Rate Demand Bonds.
"Serial Bonds" means any Current Interest Bonds
maturing on or before July 1, 2005.
"Term Bonds" means any Current Interest Bonds
maturing on July 1, 2013 and July 1, 2021.
103. Authority for this Resolution. This Second Series Resolution is adopted pursuant to the provisions of the
Act and the Resolution.
ARTICLE II
Authorization, Terms and Issuance
201. Authorization, Principal Amount, Description
and Series. In order to provide funds necessary for the
purposes specified in Section 203 of the Resolution, in
accordance with and subject to the terms, conditions and
limitations established herein and in the Resolution, a Series
of Power Revenue Bonds is hereby authorized to be issued in the
aggregate principal amount of $60,259,015.10. The Authority is
of the opinion and hereby determines that the issuance of the
Bonds in said amount is necessary to provide sufficient funds
to be used and expended for the purposes specified in Section
202 of the Resolution. The Bonds of such Series shall be
designated and entitled "Power Revenue Bonds, Second Series
(Bradley Lake Hydroelectric Project)". The Bonds shall consist
of $20,105,000 principal amount of Serial Bonds, $36,820,000
principal amount of Term Bonds and $11,520,000 maturity amount
of Capital Appreciation Bonds ($3,334,015.10 initial principal
amount) and shall be issued in fully registered form.
202. Purposes. The purpose for which the Bonds are
being issued is to pay the Cost of Acquisition and Construction
of the Project, including, without limitation, to provide funds
for deposit in the Renewal and Contingency Reserve Fund, the
Capital Reserve Fund, the Interest Account of the Debt Service
Fund, the Operating Reserve Account of the Operating Fund, and
the Construction Fund, and the refunding of the balance of the
Outstanding Variable Rate Demand Bonds, all to the extent and
RESO ON - 90-10
Page 2 A21174JF
subject to the limitations and in the amounts provided in the
Resolution and in Article II hereof. The amount deposited in
the account in the Construction Fund for the Project shall be
expended to pay Costs of Issuance of the Bonds, to the extent
permitted by the Code. The amount necessary of the proceeds of
the Bonds shall be applied by the Authority to the redemption
of all the Variable Rate Demand Bonds Outstanding. In
addition to the deposits required by Section 203 of the
Resolution, $4,321,837 of the amount of the proceeds of the
Bonds set forth in the Certificate of Authorized Officer
referred to in Section 401 shall be deposited in the Interest
Account of the Debt Service Fund. The provisions of Section
203 of the Resolution shall be complied with as follows:
(a) A deposit shall be made from Bond proceeds into
the Capital Reserve Fund in an amount which shall cause the
amount deposited in said Fund from Bond proceeds to equal, but
not exceed, the Capital Reserve Requirement which is determined
to be the lesser of (i) ten percent of the original purchase
price of the Bonds, (ii) 125% of the average amount of
principal and interest on all Bonds scheduled to accrue during
each 12 month period following the date of issuance of the
Bonds and (iii) the maximum amount of principal and interest on
the Bonds scheduled to accrue during any consecutive twelve
month period following the date of issuance of the Bonds.
(b) Further amounts from other than Bond proceeds
shall be deposited in the Operating Reserve Account and in the
Renewal and Contingency Reserve Fund in an amount which shall
cause the amount in the Operating Reserve Account to equal the
Operating Reserve Account Requirement and in an amount which
shall cause the amount in the Renewal and Contingency Reserve
Fund to equal the Renewal and Contingency Reserve Requirement.
The source for such payments shall be specified in the
Certificate of Authorized Officer referred to in Section 401.
(c) The amounts of the proceeds of the Bonds to be
deposited in the Funds or Accounts or applied to the purpose
set out in this section shall be specified in the Certificate
of Authorized Officer referred to in Section 401.
203. Issue Date and Form. The Current Interest
Bonds shall be dated July 15, 1990. The Capital Appreciation
Bonds shall be dated as of the date of their delivery. The
Bonds shall be issued in the form of a separate, single,
authenticated, fully registered Bond for each maturity and upon
issuance, the ownership of such Bonds shall be registered in
the registry books kept by the Trustee in the name of Cede &
Co., as nominee for The Depository Trust Company, the Bond
Depository as provided in Subsection 305(3) of the Resolution.
SO ON » _90-
Page 3 A211743F
— 204. ities a s si (a) The Current
Interest Bonds shall be issued in the denomination of $5,000 or any integral multiple thereof, shall mature on July 1 in the
following years, and the Current Interest Bonds maturing in
each such year shall mature in the principal amount and bear
interest from the date thereof, payable on January 1, 1991, and
semiannually thereafter on January 1 and July 1 in each year,
at the rates set opposite such year in the following table:
Principal
Amount
Years Maturing Rates
1992 $ 780,000 6.10%
1993 985,000 6.20
1994 1,045,000 6.30
1995 17215;,,000 6.40
1996 1,185,000 6.50
1997 1,265,000 6.60
1998 1,345,000 6.70
1999 1,435,000 6.80
2000 1,535,000 6.90
2001 1,635,000 6.95
2002 1,750,000 7.00
2003 1,875,000 7.05
2004 2,005,000 7.10
2005 2,105,000 WekS
2013 7,425,000 7.20
2021 29,395,000 Tae
(b) The Capital Appreciation Bonds shall be issued
in maturity amounts of $5,000 or any integral multiple thereof
and bear interest from their date accrued and compounded
semiannually on January 1 and July 1 of each year commencing
January 1, 1991, and shall be issued in the initial principal
amounts, shall accrete interest at the rates and shall mature
on July 1 of the years shown in the following table:
(to two places
Initial Principal after the decimal)
Year Amount interest Rate
2006 $ 763,231.60 7.10
2007 711,807.05 7.10
2008 663,840.00 7.10
2009 617,757.00 7.10
2010 577,379.45 7.10
The Accreted Value of the Capital Appreciation Bonds in each
year shall be set forth in a certificate of an Authorized
RESOLUTION NO. 90-10
Page 4 A21174JF
officer filed with the Trustee prior to the delivery of the
Bonds and the Accreted Value in each such year shall be fixed
so that the initial principal amount of the Bonds stated is
. correct if interest accrues on such initial principal amount at
a rate(to two places after the decimal) of Seven and One-Tenth
percent (7.10%) per annum compounded on January 1, 1991 and on
each July 1 and January 1 thereafter.
The Capital Appreciation Bonds are not subject to
redemption prior to maturity.
205. Denominations, Numbers and Letters. Bonds shall be numbered and lettered in such manner as an Authorized
Officer of the Authority shall determine prior to delivery
thereof.
206. Redemption. The Current Interest Bonds
maturing on or after July 1, 2001 are subject to redemption,
either as a whole or in part, on any date (which date shall be
determined by the Authority or selected by the Trustee, subject
to the provisions of, and in accordance with, the Resolution
and when so determined or selected shall be deemed and is
hereby set forth as a redemption date) on and after July 1,
2000, and prior to their respective maturities, upon notice as
provided in Article IV of the Resolution, at the respective
Redemption Prices (expressed as percentages of the principal
amount of such Bonds to be so redeemed) set opposite such
period in the following table, plus in each case interest
accrued to the redemption date:
Redemption Prices
Period (Expressed as a
ot at Cc ive Percentage)
July 1, 2000 - June 30, 2001 102
July 1, 2001 - June 30, 2002 101
July 1, 2002 and thereafter 100
207. Sinking Fund Installments. The Term Bonds maturing on July 1, 2013 shall be subject to redemption in part
by operation of the Principal Account through application of
Sinking Fund Installments as provided in Subsection 507(2) of
the Resolution on July 1, 2011 and on each July 1 thereafter as
herein provided in each case at a Redemption Price equal to the
principal amount of each Bond or portion thereof to be
redeemed, together with interest accrued to the redemption
date. There shall be due and the Authority shall in any and
all events be required to pay on July 1 of each of the years
set forth in the following table the amount set opposite each
such year in said table and said amount is hereby established
SOLUTION NO. 90-10 Page 5 A21174JF
as and shall constitute a Sinking Fund Installment for the
retirement of the Term Bonds maturing in 2013, provided,
however, that the amount set opposite 2013 in said table shall
be payable at the stated maturity date of the said Term Bonds
and shall not constitute a Sinking Fund Installment:
ear Sinking Fund Installments
2011 $ 2,305,000
2012 2,470,000
2033 2,650,000
208. Sinki und nts. The Term Bonds
maturing on July 1, 2021 shall be subject to redemption in part
by operation of the Principal Account through application of
Sinking Fund Installments and provided in Subsection 507(2) of
the Resolution on July 1, 2014 and on each July 1 thereafter as
herein provided in each case at a Redemption Price equal to the
principal amount of each Bond or portion thereof to be
redeemed, together with interest accrued to the redemption
date. There shall be due and the Authority shall at any and
all events be required to pay on July 1 of each of the years
set forth in the following table the amount set opposite each
such year in said table and said amount is hereby established
as and shall constitute a Sinking Fund Installment for the
retirement of the Term Bonds maturing in 2021, provided,
however, that the amount set opposite 2021 in said table shall
be payable at the stated maturity date of the said Term Bonds
and shall not constitute a Sinking Fund Installment:
Year Sinking Fund Installments
2014 $ 2,835,000 2015 3,045,000 2016 3,265,000 2017 3,505,000 2018 3,760,000 2019 4,030,000 2020 4,320,000 2021 4,635,000
209. No Redemption of Bonds from Construction Fund Moneys. The Bonds shall not be subject to redemption pursuant
to subsection 503(8) of the Resolution.
ARTICLE III
Sale and Delivery of Bonds
RESO NO. -
Page 6 A21174JF
301. Sale of Bonds. Provisions are made for the
sale of the Bonds pursuant to a proposed Bond Purchase
Agreement between the underwriter named therein, John Nuveen &
Co. Incorporated (the "Underwriter"), and the Authority (the
"Bond Purchase Agreement") which Bond Purchase Agreement shall
be in substantially the same form and content as the Bond
Purchase Agreement presented to and part of the records of this
meeting. The form and content of the Bond Purchase Agreement
be, and the same hereby are, in all respects authorized,
approved and confirmed, and the Chairman or Vice Chairman or
the Executive Director be, and each of them hereby is,
authorized, empowered and directed to execute and deliver the
Bond Purchase Agreement for and on behalf of the Authority to
the Underwriter for the sale of the Bonds substantially in the
form and content presented to and made a part of the records of
this meeting, but with such changes, modifications, additions,
and deletions therein as shall to them seem necessary,
desirable or appropriate, the execution thereof to constitute
conclusive evidence of their approval of any and all changes,
modifications, additions or deletions thereto from the forn,
and after the execution and delivery of the Bond Purchase
Agreement, the Chairman, Vice Chairman and the Executive
Director are hereby authorized, empowered and directed to do
all such acts and things and to execute all such documents as
may be necessary to carry out and comply with the provisions of
the Bond Purchase Agreement as executed.
302. Approval of Offici ti ; The
distribution of the Preliminary Official Statement of the
Authority in the form presented to and made a part of the
records of this meeting is approved. As of its date the
Preliminary Official Statement is deemed final by the Authority
for purposes of Security and Exchange Commission Rule
15c2-12(b) (1). The distribution of a final Official Statement,
which is in substantially the form and content of the
Preliminary Official Statement, and the use thereof by the
Underwriter in connection with the offering of the Bonds, is
hereby ratified, confirmed and approved.
303. Investment Agreements. The Chairman or Vice
Chairman or the Executive Director be, and each of them hereby
is authorized and empowered to execute and deliver appropriate
investment agreements with financial institutions providing for
investment of proceeds of the Bonds and amounts to be
transferred from other funds of the Authority to secure the
Bonds in such form and on such terms and conditions as they
deem appropriate.
304. Delivery of Bonds. The Chairman, Vice
Chairman, Executive Director and such other person or persons
as may be designated by the Executive Director are specifically
O ° Oo. 90-
Page 7 A21174JF
designated as Authorized Officers as defined in the Resolution
and they hereby are severally authorized, after execution of
the Bonds, to deliver the Bonds to the Trustee for
authentication under the Resolution, and, upon authentication
and upon receipt of the balance of the purchase price of the
Bonds, to deliver to the Trustee a written order in the name of
the Authority directing the Trustee to deliver the Bonds to or
upon the order of the Underwriter, and to receive the proceeds of sale of the Bonds and give a written receipt therefor on
behalf of the Authority, to apply said proceeds and the other
moneys required to be transferred or deposited in accordance
with the terms of the Resolution and this Resolution and in
such manner as is required to cause the conditions precedent to
the issuance of the Bonds to be complied with, and to do and
perform or cause to be done and performed, for and on behalf of
the Authority, all acts and things that constitute conditions
precedent to the authentication and delivery of the Bonds or
that are otherwise required or convenient to be done and
performed by or on behalf of the Authority prior to or
simultaneously with the delivery of the Bonds. Such Authorized
Officers are hereby severally authorized for and on behalf of
the Authority to do or cause to be done all acts and things
required or desirable to be done by the Authority under and
pursuant to the terms of the Resolution, and in accordance with
the terms and conditions of the Bond Purchase Agreement of the
Authority with respect to the Bonds.
ARTICLE IV
Variable Rate Demand Bonds
401. Redemption of Variable Rate Demand Bonds. The balance of the Outstanding Variable Rate Demand Bonds shall be
redeemed pursuant to Section 3.01(A)(1) of the 1985 Indenture
within 90 days of the date of delivery of the Bonds. Amounts
held in Funds and Accounts under the 1985 Indenture shall be
applied to the redemption of the Variable Rate Demand Bonds and
otherwise as may be specified in a Certificate of an Authorized
Officer of the Authority filed with the Trustee on the date of
delivery of the Bonds.
ARTICLE V
501. Scheduled Maintenance Fund. A Scheduled
Maintenance Fund, to be held by the Trustee, is hereby
established. Amounts may be paid into the Scheduled
Maintenance Fund by the Authority out of amounts received for
that purpose from the Purchasers. The Trustee shall make
payments from the Scheduled Maintenance Fund and apply amounts
in the Scheduled Maintenance Fund to payment of items of
maintenance, renewal, repair and rehabilitation of the Project,
9 O-
Page 8 A21174J3F
as specified in a requisition of the the Authority in
accordance with a budget adopted by vote of the Committee. For
purposes of the Resolution this Fund shall be considered as if
established by Section 502 of the Resolution and amounts in the
Scheduled Maintenance Fund shall be, and the same are, included
in the pledge effected in Section 501 of the Resolution,
provided, that amounts in the Scheduled Maintenance Fund shall
be applied to the payment of principal of or interest on the
Bonds only after all other pledged amounts have been so
applied.
ARTICLE VI
Paying Agent
601. Security Pacific Bank Washington, N.A. is
appointed Paying Agent for the Second Series Bonds pursuant to
Section 902 of the Resolution.
ARTICLE VII
Bond Insurance
701. Insurance Commitment. The commitment of
Municipal Bond Investors Assurance Corporation to provide
insurance of the Bonds specified therein in the form presented
to and made a part of the records of this meeting is authorized
and approved on behalf of the Authority and the Executive
Director is authorized to execute and deliver the commitment on
behalf of the Authority.
702. Provisions Relative to Bond Insurer. For so
long as the Bond Insurer maintains the Municipal Bond Insurance
Policy:
(a) Copies of any amendments made to the documents
executed in connection with the issuance of the Bonds which are
consented to by the Bond Insurer shall be sent to Standard &
Poor’s Corporation.
(b) The Bond Insurer shall receive notice of the
resignation or removal of the Paying Agent and the appointment
of a successor thereto.
(c) The Bond Insurer shall receive copies of all
notices required to be delivered to Bondowners and, on an
annual basis, copies of the Authority’s audited financial
statements and annual budget.
(ad) Any notice that is required to be given to an
owner of the Bonds or to the Paying Agent pursuant to the
Resolution shall also be provided to the Bond Insurer. All
notices required to be given to the Bond Insurer under the
Resolution shall be in writing and shall be sent by registered
or certified mail addressed to Municipal Bond Investors
R NO. =
Page 9 A21174J3F
Assurance Corporation, 113 King Street, Armonk, New York 10504
Attention: Surveillance.
703. ocedu fu.
Insurance Policy. As long as the Municipal Bond Insurance Policy is in
full force and effect, the Authority and the Paying Agent agree
to comply with the following provisions:
(a) In the event that, on the second business day,
and again on the business day, the Paying Agent has not
received sufficient moneys to pay all principal of and interest
on the Bonds due on the second following or following, as the
case may be, business day, the Paying Agent shall immediately
notify the Bond Insurer or its designee on the same business
day by telephone or telegraph, confirmed in writing by
registered or certified mail, of the amount of the deficiency.
(b) If the deficiency is made up in whole or in part
prior to or on the interest payment date, the Paying Agent
shall so notify the Bond Insurer or its designee.
(c) In addition, if the Paying Agent has notice that
any Bondholder has been required to disgorge payments of
principal or interest on the Bonds to the Authority or its
trustee in bankruptcy or creditors or others pursuant to a
final judgment by a court of competent jurisdiction that such
payment constitutes a voidable preference to such Bondholder
within the meaning of any applicable bankruptcy laws, then the
Paying Agent shall notify the Bond Insurer or its designee of
such fact by telephone or telegraphic notice, confirmed in
writing by registered or certified mail.
(d) The Paying Agent is hereby irrevocably
designated, appointed, directed and authorized to act as
attorney-in-fact for owners of the Bonds as follows:
(i) If and to the extent there is a deficiency in
amounts required to pay interest on the Bonds, the Paying
Agent shall (x) execute and deliver to Citibank, N.A., or
its successors under the Policy (the "Insurance Trustee"),
in form satisfactory to the Insurance Trustee, an
instrument appointing the Bond Insurer as agent for such
owners in any legal proceeding related to the payment of
such interest and an assignment to the Bond Insurer of the
claims for interest to which such deficiency relates and
which are paid by the Bond Insurer, (y) receive as
designee of the respective owners (and not as Paying
Agent) in accordance with the tenor of the Policy payment
from the Insurance Trustee with respect to the claims for
interest so assigned and (z) disburse the same to such
respective owners; and
(ii) If and to the extent there is a deficiency in
amounts required to pay principal of the Bonds, the Paying
Agent shall (x) execute and deliver to the Insurance
Trustee in form satisfactory to the Insurance Trustee an
RESO ON NO. 90- Page 10 A21174JF
instrument appointing the Bond Insurer as agent for such owners in any legal proceeding relating to the payment of
such principal and an assignment to the Bond Insurer of
any of the Bonds surrendered to the Insurance Trustee or so much of the principal amount thereof as has not
previously been paid or for which moneys are not held by
the Paying Agent and available for such payment (but such
assignment shall be delivered only if payment from the
Insurance Trustee is received), (y) receive as designee of
the respective owners (and not as Paying Agent) in
accordance with the tenor of the Policy payment therefor
from the Insurance Trustee with respect to the interest so
assigned and (z) disburse the same to such respective
owners.
(e) Payments with respect to claims for interest on
and principal of Bonds disbursed by the Paying Agent from
proceeds of the Policy shall not be considered to discharge the
obligation of the Authority with respect to such Bonds, and the
Bond Insurer shall become the owner of such unpaid Bonds and
claims for the interest in accordance with the tenor of the
assignment made to it under the provisions of this section or
otherwise.
(f) Irrespective of whether any such assignment is
executed and delivered, the Authority and the Paying Agent
hereby agree for the benefit of the Bond Insurer that:
(i) they recognize that to the extent the Bond
Insurer makes payments, directly or indirectly (as by
paying through the Paying Agent), on account of principal
of or interest on the Bonds, the Bond Insurer will be
subrogated to the rights of such owners to receive the
amount of such principal and interest from the Authority,
with interest thereon as provided and solely from the
sources stated in the Resolution and the Bonds, and
(ii) they will accordingly pay to the Bond Insurer
the amount of such principal and interest (including
principal and interest recovered under subparagraph (ii)
of the first paragraph of the Policy, which principal and
interest shall be deemed past due and not to have been
paid), with interest thereon as provided in the Resolution
and the Bonds, but only from the sources and in the manner
provided therein for the payment of principal of and
interest on the Bonds to owners, and will otherwise treat
the Bond Insurer as the owner of such rights to the amount
of such principal and interest.
ARTICLE VIII
Book - Entry
801. The Bonds shall be issued in book-entry form
Page 11 A21174JF
pursuant to paragraphs 3-8 of Section 305 of the Resolution.
The Bond Depository shall be The Depository Trust Company.
ARTICLE IX
Amendment
901. Section 1002 of the Resolution permits an amendment
of the Resolution, effective upon the consent of the Trustee,
to make a change which does not in the sole opinion of the
Trustee materially and adversely affect the rights of the
Bondholders. Pursuant to this provision, Section 502 of the
Resolution is amended as follows:
502. s ishme a - (1) The
following Funds and Accounts, each to be held by the Trustee,
are hereby established:
(1) Construction Fund,
(2) Debt Service Fund, which shall consist of an
Interest Account and a Principal Account,
(3) Capital Reserve Fund,
(4) Renewal and Contingency Reserve Fund[;], [and]
(5) Excess Investment Earnings Fund[.].
(2. The following funds, each to be held by the
Authority, are hereby established: ]
((1)](6) Revenue Fund, and
((2)]{2) Operating Fund, which shall include therein
an Operating Reserve Account.
ARTICLE X
Effective Date
10.01. This Resolution shall take effect
immediately.
RESOLUTION NO. 90-10
Page 12 A21174JF
Supplemental Resolution approved and adopted by
Alaska Energy Authority on July 25, 1990.
ALASKA ENERGY AUTHORITY
By Chairman
Page 13 A21174JF
Til
RECORD VOPY
FILE NO
fre, Sule CHUGACH ELECTRIC ASSOCIATION, INC. — 9/2190 Anchorage, Alaska N9C
September 20, 1990 4
TO: Bradley Lake Project Management Committee
FROM: David W. Burlingame, Bradley TCS representative
SUBJECT: Technical Coordinating Subcommittee (TCS) Report
The following is a brief synopsis of the 2 TCS meetings held since
the last meeting of the Project Management Committee (PMC):
July 19, 1990 Meeting
Stability Studies - It was agreed that any stability studies
required to ensure the proper incorporation of Bradley Lake into
the Railbelt system would be included as part of the project.
The committee adopted a list of stability cases intended to assess
the interim operating limits of Bradley Lake. The interim period
is the period between the time Bradley Lake becomes operational and
the time when stability aids such as SVS installations are
installed on the systen.
scapa - A listing of points to be connected to the Chugach RTU was
distributed and approved.
Soldotna - Bradley Lake Line - Homer Electric Association, Inc.
(HEA) stated the line is scheduled to be completed by April 1,
1991.
%* Unit Tripping - The committee agreed to allow tripping of one or
both of the Bradley Lake units if tripping of these units would
allow a higher operating capacity for the plant and improve the
stability and post fault conditions.
Series Capacitors - Stone & Webster Engineering Corporation (SWEC)
recommended against the use of series capacitors in the Kenai 115
kV system. The recommendation was made due to the concern for
subsynchronous resonance on the Kenai. The recommendation was
unanimously adopted.
Braking Resistor - SWEC stated they would not endorse the use of
the braking resistor used in the manner proposed by Power
Technologies, Inc. (PTI). SWEC believes the scheme is too
complicated and may never work as intended. SWEC also expressed
their concern over the use of braking resistors in general based on
their discussions with personnel at the two installations in North
America.
Bradley Lake Project Management Committee
TCS Report
September 20, 1990
Page 2
Stability Criteria - HEA and Chugach agreed to allow the transient
overfrequency to rise above 61.5 Hz, if no detrimental effects to
turbines or consumers was encountered.
Generator Stabilizer - SWEC recommended the purchase of a Fuji
power system stabilizer as opposed to the previously specified
General Electric (GE) or PTI digital stabilizer. The Fuji
stabilizer is analog and does not have the control characteristics
used in the stability studies but is considerably cheaper than
either digital stabilizer. The Committee accepted the
recommendation provided the use of the Fuji stabilizer does not
result in any decrease in the capacity output of Bradley Lake.
August 30, 1990 Meeting
Generator Test Reports - The committee generally agreed the test
reports performed by PTI were done very well. The tests brought up
several questions in regards to the performance of some units in
the system. SWEC was directed to put the Kenai generation test
reports in the same format.
Bradley Lake Procurement and Testing Schedule - The schedules for
the start-up and commissioning of the Bradley Lake units and the
subsequent installation of the SVS systems was reviewed.
Basically, the start-up of Unit #2 will commence in May with on-
line testing starting sometime in June. The unit is scheduled to
be turned over to the utilities for operation July 1, 1991 and
scheduled to go commercial September 1, 1991. Unit #1 will follow
approximately 30 days behind Unit 2's schedule for testing and
utility operation with commercial operation also scheduled for
September 1, 1991.
The installation of the SVS systems is optimistically scheduled for
June 1992, with utility acceptance in January, 1993.
Braking Resistor - SWEC recommended against the installation of a
braking resistor at Bradley Lake. The recommendation was based on
the use of unit tripping and frequency excursions up to 63 Hz following islanding. The recommendation was adopted by the
committee pending the review of the required stability cases to
show deletion of the brake will not result in any capacity
reductions for Bradley Lake. It was felt unit tripping for the
Bradley-Soldotna Line and the frequency excursions to 63 Hz will
allow Bradley to operate at 90 MW in the fall of 1991.
Bradley Lake Project Management Committee
TCS Report
September 20, 1990 Page 3
The TCS recommended including the costs of dual porting the HEA
Diamond Ridge RTU as part of the project cost. Dual porting will
eliminate a CPU-CPU link which would have been required between the
Chugach and HEA SCADA systems. The cost of the dual porting has
been quoted by HEA's RTU vendor as $30,974.00. The recommendation
will require PMC approval.
The PMC also needs to approve the reimbursement to Chugach of
$95,441.09 for relay additions required at HEA's Soldotna
Substation for the operation of Bradley Lake. The expenditure was
approved by the TCS in December, 1988 and was thought to have been
approved by PMC but no resolution has been found in the records.
The original Technical Coordinating Committee (TCC) resolution was
for the installation of subject relays was not to exceed $115,000.
Since the TCS meetings, HEA has indicated there may be some problem
with frequency excursions previously adopted by the TCS.
DWB/pn
DWB4-65
DATE:
TO:
FROM:
SUBJECT:
skb9006 (1)
Ji / v Alaska Energy Authority RECORD COPY
FILE NO
MEMORANDUM erg Bhim,
q/=1)e2
September 7, 1990
Robert E. LeResche
Executive Director
David R. Eber
Project Manage
Bradley Lake Project Management Committee Approval of
Additional Reimbursable Project Costs
}
There are two items of utility reimbursable costs which
should be brought before the Project Management Committee (PMC) for approval as Bradley Lake project costs. These are:
1. Chugach Electric's costs associated with the
installation of transfer tripping relays to
support Bradley Lake. Total cost for this item
is $95,441.09. The work has been completed and
the bill is pending payment by the Energy
Authority (see attached bill). This work is a
legitimate part of the project cost and was
recommended for PMC approval by the Technical
Coordination Subcommittee on December 15, 1988
(see attached minutes). Although I am
reasonably certain that it was previously acted
upon by the PMC, it is not reflected in any of
the PMC meeting minutes. Re-confirmation by the
PMC is therefore recommended prior to payment.
This item was originally anticipated to cost approximately $115,000.
2. Homer Electric's proposed purchase of dual-
ported RTU's for installation at the Diamond
Ridge and Soldotna substations. It was
originally planned that the Energy Authority
would purchase dual-ported RTU's for these
locations through the Energy Authority's SCADA
contract. This was not done, however, due to
uncertainties associated with Homer Electric
Association's (HEA) planned SCADA system.
Consequently it was agreed that HEA and Chugach
Electric Association (CEA) would install back-
to-back RTU's at the sites with the costs of the
RTU's (excluding installation costs) to be
reimbursed as a project cost (see minutes of TCS
Robert E. LeResc..-
September 7, 1990
Page 2
meeting May 5/May 13, 1988). Recently HEA has
awarded its SCADA contract to the same supplier as the Energy Authority (i.e. Landis & Te As
an alternative to installing two back-to-back
RTU's at each site, a single dual-ported RTU is possible, provided the RTU can emulate the BBC
7200 Protocol which is used by CEA's SCADA
network. HEA has secured a quote from L&G in the amount of $30,974 to add this emulation
capability. HEA's total costs of two dual-
ported RTU's including the BBC 7200 Protocol is $60,544. The Technical Coordination Sub-
committee recommends the purchase of the RTU's
by HEA be approved as a reimbursable cost, with
installation costs to be borne by HEA.
It is requested that these items be addressed and approved
by the PMC at the September 21, 1990, meeting.
DRE:skb
Attachments as stated.
skb9006 (2)
RECORD UOPY
FILE NO
TRO Be) Min
DRAFT 9/2: 190
Y BRADLEY LAKE BUDGET SUBCOMMITTEE MEETING MINUTES July 16, 1990
On July 16, 1990, the Budget Subcommittee met at the Alaska Energy Authority to continue
discussion on the Bradley Lake Dry-Run Operation and Maintenance Budget. Present at the
meeting were:
Utility/AEA Representatives:
Brent N. Petrie, AEA
Don Shira, AEA
Myles Yerkes, ML&P
Tom Lovas, CEA
Laurie Prentice, ML&P
DeAnna Scott, AEA
Ron Saxton, Purchasing Utilities
Ken Ritchey, MEA
Sam Mathews, HEA
HEA TRANSMISSION MAINTENANCE COST
Mr. Shira reported that there was a meeting among representatives of the operating staff of each
utility and they were able to reduce the cost for the inspection of the Bradley Lake/Bradley
Junction transmission line segment from $72,000 to $41,000. This would include inspection of
all of the towers the first year. After the first year, 31 towers would be inspected each year for
five years on a rotating basis. Eight towers each day would be climbed and this would be
completed in a four day period. Twice each year a fly by would be done by HEA staff along with
John Zidalis accompanying them. One inspection each year at the switch yard would be
conducted. The subcommittee members were pleased with the new numbers and all are in
agreement.
CEA DISPATCH AGREEMENT
Mr. Lovas reported that CEA’s attorney supports the stand that CEA has taken. The cost that is
covered in the Transmission Services Agreement was withdrawn and that resulted in the
$100,000 decrease to CEA’s O&M budget. The $93,800 is labor costs for management
supervision (Brad Evans and Henry Dale’s) which includes software application, SWEC models,
analysis of system load flows, etc. $20,000 is for amortization of the dispatching software
package over a 10 year period. $36,000 each year has been set aside for training on the new
dispatching software. The subcommittee has asked Mr. Lovas to bring to the subcommittee
information supporting the need for $150,000 for CEA in the O&M budget. This will be
addressed at the next meeting.
INSURANCE
The Insurance Committee met on July 16, 1990. The final risk assessment report was received
from SWEC and the subcommittee reviewed it at that time. It was brought to the subcommittees
attention that the property, boiler and machinery quotes was incorrect. The watercraft and
liability insurance will be purchased from the State of Alaska’s policy and those quotes that are
presently on the O&M budget are correct. Another issue is that the Insurance Subcommittee will
have to come up with some alternate ways for coverage on the transmission lines and present
them to the PMC for action. The Insurance Committee has to determine what is really needed
for adequate coverage on the project. The Insurance Committee will hopefully have some
information within 60 days.
AEA COSTS
Mr. Petrie recommended to leave the O&M personnel as it is stated in the budget. It was
recognized that the O&M personnel would be working on construction related items and this
could be handled on a work order type basis which would be capitalized. There was no
overtime included in the O&M budget and this would probably be a wash between the two. The
committee is in agreement with the O&M and construction cost. The question was asked to see
if the seismic monitoring could be capitalized. Don Shira is to check with SWEC. Mr. Ritchey
stated that the Manager's has not had their meeting to come to an agreement on the Authority’s
administrative and general expenses. Mr. Ritchey stated that he would address this at the PMC
meeting.
CEA AND HEA WHEELING AGREEMENTS
Mr. Ritchey stated that the subcommittee should look at these agreements. CEA has in their
agreement accounts that identify costs. The Subcommittee will be looking at their costs. Mr.
Lovas stated that CEA charges are based on a formula that is in the agreement. Mr. Yerkes
asked the question if there is any duplication of accounts by CEA. In the agreement with HEA,
Mr. Mathews stated that he would need to take a look at the wheeling agreement. It was agreed
with the subcommittee members that a dry run calculation be done on both agreements to
determine a percentage that the PMC would be responsible for payment.
BUDGET DEADLINE
Mr. Petrie requested that in future budget processes that the subcommittee adopt the Authority's
portion of the budget and then revisit if for the remainder of the budget. It was discussed by the
subcommittee to have a milestone date of April 1 of each year to have the O&M budget final for
presentation to the PMC no later than August of each year starting with FY92.
SCHEDULED MEETING
The Budget Subcommittee is scheduled to meet on September 13, 1990 at 9:30 p.m. in the main
conference room of the Alaska Energy Authority.
Ken Ritchey, Chairman
10.
V1.
Br
13.
14.
15.
BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE
SEPTEMBER 21, 1990 AGENDA
CHUGACH ELECTRIC TRAINING ROOM
Revised 9/17/90
CALL TO ORDER 9:30 A.M.
ROLL CALL
PUBLIC COMMENT
MODIFICATION OF AGENDA
APPROVAL OF MINUTES July 17, 1990
BOND FINANCE TEAM REPORT
TECHNICAL COORDINATING SUBCOMMITTEE REPORT
INSURANCE SUBCOMMITTEE REPORT
BUDGET SUBCOMMITTEE REPORT
a. AEA Administrative and General Expenses
b. CEA Dispatching Costs
OPERATING AND DISPATCH AGREEMENT SUBCOMMITTEE REPORT
REVIEW OF PROJECT STATUS
OLD BUSINESS
NEW BUSINESS
a. Future Utilities Costs Reimbursement
b. Schedule Next Meeting
Date, Location, Time
COMMUNICATIONS
ADJOURNMENT
Kelly
LeResche
Burlingame
Saxton
Ritchey
Shira
Eberle
Saxton