HomeMy WebLinkAboutBrady Lake PMCR Meeting Notes 02-07-2003BRADLEY LAKE PROJECTED CASH FLOWS - 2004 Schedule |
Projected
Balance
6/30/03 July August September October November December January February March April May June FY Total July”
206,300 1,899 1,082 84,046 125,642 188,711 197,600 259,276 343,832 428,909 509,496 595,595 16,994 16,994 qd)
DEBT SERVICE FUND
Balance Debt Service Fund 0 0 0 0 0 0 0 2,701,558 2,718,217 2,734,979 2,751,845 2,768,815 0 84,332
Interest 0 0 0 0 0 0 16,558 16,660 16,762 16,866 16,970 517 84,332
Interest transferred 0 0 (84,332)
Transfers from Revenue Fund 0 0 0 0 0 0 6,136,700 0 0 0 0 6,136,700 12,273,400
Payment of Debt Service 0 0 0 0 0 (3,451,700) 0 0 0 0 (8,821,700) _(12,273,400)
0 0 0 0 0 0 0 2,701,558 2,718,217 2,734,979 2,751,845 2,768,815 84,332 84,332 0
OPERATING RESERVE
Balance Operating Reserve 535,000 361,585 247,700 249,228 250,765 252,311 253,867 243,737 245,240 246,752 248,274 249,805 535,000 599,174
Interest 3,299 2,230 1,527 1,537 1,546 1,556 1,566 1,503 1,512 1,522 1,531 1,540 20,870
Interest transferred (11,696) (11,696) (9,174)
Transfers to Operating Fund (231,714) (116,115) 0 0 0 0 0 0 0 0 0 0 (347,828) 0
Transfer from Operating Fund 55,000 0 0 0 0 0 0 0 0 0 0 347,828 402,828
535,000 361,585 247,700 249,228 250,765 252,311 253,867 243,737 245,240 246,752 248,274 249,805 599,174 599,174 590,000
CAPITAL RESERVE FUND
Balance Capital Reserve Fund 12,834,000 12,913,143 12,992,774 13,072,896 13,153,512 13,234,626 13,316,239 12,916,117 12,995,766 13,075,907 13,156,542 13,237,674 12,834,000 13,319,306
Interest 79,143 79,631 80,122 80,616 81,113 81,614 82,117 79,649 80,141 80,635 81,132 81,632 967,545
Transfer to Revenue Fund 0 0
Interest transferred (482,239) (482,239) (485,306)
12,834,000 12,913,143 12,992,774 13,072,896 13,153,512 13,234,626 13,316,239 12,916,117 12,995,766 13,075,907 13,156,542 13,237,674 13,319,306 13,319,306 12,834,000
RENEWAL & CONTINGENCY FUND
Balance in Renewal & Contingency Fund 5,000,000 4,230,833 4,256,923 4,283,174 4,309,587 4,336,163 4,362,903 4,389,807 4,416,878 4,444,115 4,471,521 4,499,095 5,000,000 4,689,129
Transfer from Revenue Fund 162,289 162,289
Requisitions (800,000) (800,000)
Interest 30,833 26,090 26,251 26,413 26,576 26,740 26,905 27,070 27,237 27,405 27,574 27,744 326,840
Interest transferred 0 0 0
5,000,000 4,230,833 4,256,923 4,283,174 4,309,587 4,336,163 4,362,903 4,389,807 4,416,878 4,444,115 4,471,521 4,499,095 4,689,129 4,689,129 4,689,129
Assumptions:
Amount moved to operating fund = 1/12 of O&M expenses
plus contingency minus carryforward available
Interest payments move from Revenue Fund to
Debt Service Fund on June 1 & December 1
1/2 of annual principal payments are drawn from Revenue
Fund on December 1 & June 1
Interest receipts are in July & January
R&C Fund is reimbursed in 4 equal annual payments
Operating Reserve Requirement increased at beginning of June to meet first month operating deficit if greater than reserve amount
Page 2 of 2 2004 Bradley Budget.xls, 2/7/03, 11:09 AM
BRADLEY LAKE PROJECTED CASH FLOWS - 2004 Schedule |
Projected
Balance
6/30/03 July August eptember October November December January February March April May June FY Total July
2004 BUDGET
Debt Service - Principal 5,370,000 5,370,000
Debt Service - Interest 3,451,700 3,451,700 6,903,400
Total Debt Service 0 0 0 0 0 3,451,700 0 0 0 0 0 8,821,700 12,273,400
OPERATING FUND
Operating Budget 615,839 350,839 150,839 192,589 171,439 225,839 164,339 150,839 150,839 155,839 150,839 465,127 2,945,206
Renewals & Replacements 0 0 0 0 0
Contingency 0% 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL REQUIREMENTS =a ~ ——— 15,218,606
INTEREST INCOME
Capital Reserve 79,143 79,631 80,122 80,616 81,113 81,614 82,117 79,649 80,141 80,635 81,132 81,632 967,545
R&C Fund 30,833 26,090 26,251 26,413 26,576 26,740 26,905 27,070 27,237 27,405 27,574 27,744 326,840
Operating Reserve 3,299 2,230 1,527 1,537 1,546 1,556 1,566 1,503 1,512 1,522 1,531 1,540 20,870
Debt Service Fund 0 0 0 0 0 0 16,558 16,660 16,762 16,866 16,970 517 84,332
113,275 107,951 107,901 108,566 109,235 109,909 127,144 124,883 125,653 126,427 127,207 111,434 1,399,586
Operating Fund 1,899 1,082 977 1,360 1,682 1,903 2,093 2,570 3,091 3,600 4.113 1,530 25,899
SUBTOTAL 115,174 109,033 108,878 109,926 110,917 111,812 129,237 127,452 128,744 130,028 131,320 112,964 1,425,485
Revenue Fund 13,188 18,669 24,184 29,733 35,316 40,934 12,843 17,323 22,830 28,371 33,946 71 278,049
INTEREST INCOME 128,362 127,702 133,062 139,659 146,234 152,746 142,081 144.775 151,574 = 158. 398 165, 265 = 113,675 1,703,534
YTD INTEREST INCOME 128,362 256,064 389,126 528,786 675,019 827,766 969,846 1,114,622 1,266,196 1,424,594 1,589,859 1,703,534
INTEREST RECEIVED 765,721 827,766 1,593,487 875,768
FUND BALANCES Projected
6/30/03
REVENUE FUND
Beginning Balance in Revenue Fund 697,200 2,151,768 3,046,096 3,945,938 4,851,330 5,762,306 6,678,898 1,933,539 2,826,521 3,725,010 4,629,039 5,538,644 697,200 (0)
Revenue from Power Purchasers 1,108,484 1,108,484 1,108,484 1,108,484 1,108,484 1,108,484 1,108,484 1,108,484 1,108,484 1,108,484 1,108,484 1,108,484 13,301,810
Transfer to Debt Service - Principal (2,685,000) (2,685,000) (5,370,000)
Transfer toDebt Service - Interest (3,451,700) (3,451,700) (6,903,400)
To Operating Fund (232,825) (232,825) (232,825) (232,825) (232,825) (232,825) (232,825) (232,825) (232,825) (232,825) (232,825) (232,825) (2,793,905)
To Renewal and Contingency Fund (162,289) (162,289)
Arbitrage transfer (200,000) (200,000)
From Operating Fund 0
Interest Accrued 13,188 18,669 24,184 29,733 35,316 40,934 12,843 17,323 22,830 28,371 33,946 71 278,049
Interest Accrual Reversal (162,025) (116,024) (278,049)
Interest Receipts & Transfers 765,721 0 0 0 0 0 664,863 0 0 0 0 1,430,584 711,831
End of Month Balance 697,200 2,151,768 3,046,096 3,945,938 4,851,330 5,762,306 6,678,898 1,933,539 2,826,521 3,725,010 4,629,039 5,538,644 (0) (0) 711,831
OPERATING FUND
Balance Operating Fund 206,300 1,899 1,082 84,046 125,642 188,711 197,600 259,276 343,832 428,909 509,496 595,595 206,300 16,994
Interest 1,899 1,082 977 1,360 1,682 1,903 2,093 2,570 3,091 3,600 4,113 1,530 25,899
Interest transferred (8,903) (8,903) (16,995)
Transfers from Revenue Fund 232,825 232,825 232,825 232,825 232,825 232,825 232,825 232,825 232,825 232,825 232,825 232,825 2,793,905 0
Transfers from Operating Reserve 231,714 116,115 0 0 0 0 0 0 0 0 0 0 347,828 0
To Operating Reserve (55,000) (347,828) (402,828)
Transfer from R&C fund 0 0
Renewals & Replacements 0 0 0 0 0 0 0 0 0 0 0 0 0
Operating Requistions (615,839) (350,839) (150,839) (192,589) (171,439) (225,839) (164,339) (150,839) (150,839) (155,839) (150,839) (465,127) (2,945,206) oO
Page 1 of 2 2004 Bradley Budget.xls, 2/7/03, 11:09 AM
BRADLEY LAKE PROJECTED CASH FLOWS - 2003 Schedule H
Projected
Balance
6/30/02 July August September October November December January February March April May June FY Total July
Operating Requistions 0 (200,000) (1,026,930) 0 0 0 _(436,675) (239,635) (239,635) (239,635) (239,635) (239,635) (2,861,780)
698,890 904,292 910,344 57,825 259,274 461,965 665,906 409,020 372,261 335,275 298,061 260,618 222,943 222,943 206,300
DEBT SERVICE FUND
Balance Debt Service Fund 0 0 0 0 0 0 0 2,558,179 2,573,954 2,589,827 2,605,798 2,621,867 0 79,856
Interest 0 0 0 0 0 0 15,679 15,775 15,873 15,971 16,069 489 79,856
Interest transferred 0 0 (79,856)
Transfer from R&C fund 0
Transfer from Capital Reserve Fund 0
Transfers from Revenue Fund 0 0 0 0 0 0 6,134,038 0 0 0 0 6,134,038 12,268,075 Payment of Debt Service 0 0 0 0 0 (3,591,538) 0 0 0 0 (8,676,538) (12,268,075)
0 0 0 0 0 0 0 2,558,179 2,573,954 2,589,827 2,605,798 2,621,867 79,856 79,856 0
OPERATING RESERVE
Balance Operating Reserve 535,000 538,299 541,619 544,959 548,319 551,701 555,103 538,423 541,743 545,084 548,446 551,828 535,000 555,231
Interest 3,299 3,320 3,340 3,361 3,381 3,402 3,423 3,320 3,341 3,361 3,382 3,403 40,333
Interest transferred (20,103) (20,103) (20,231)
Transfers to Operating Fund 0 0 0 0 0 0 0 0 0 0 0 0 0
Transfer from Operating Fund 0 0 0 0 0 0 0 0 0 0 0 0 0
535,000 538,299 541,619 544,959 548,319 551,701 555,103 538,423 541,743 545,084 548,446 551,828 555,231 555,231 535,000
CAPITAL RESERVE FUND
Balance Capital Reserve Fund 12,834,000 12,913,143 12,992,774 13,072,896 13,153,512 13,234,626 13,316,239 12,916,117 12,995,766 13,075,907 13,156,542 13,237,674 12,834,000 13,319,306 Reduction on Capital Reserve 0
Interest 79,143 79,631 80,122 80,616 81,113 81,614 82,117 79,649 80,141 80,635 81,132 81,632 967,545
Interest transferred (482,239) (482,239) (485,306)
12,834,000 12,913,143 12,992,774 13,072,896 13,153,512 13,234,626 13,316,239 12,916,117 12,995,766 13,075,907 13,156,542 13,237,674 13,319,306 13,319,306 12,834,000
RENEWAL & CONTINGENCY FUND
Balance in Renewal & Contingency Fund 5,000,000 4,769,420 4,798,831 4,828,424 4,858,199 4,888,158 4,918,302 4,084,248 3,881,900 3,905,838 3,929,924 3,954,159 5,000,000 5,000,000
Interest 30,833 29,411 29,593 29,775 29,959 30,144 30,330 25,186 23,938 24,086 24,235 24,384 331,874
Transfer from Revenue Fund 1,021,457 1,021,457
Capital Repairs/Maintenance (261,414) (864,384) (227,534) 0 (1,353,331)
Interest transferred 0 0 0
5,000,000 4,769,420 4,798,831 4,828,424 4,858,199 4,888,158 4,918,302 4,084,248 3,881,900 3,905,838 3,929,924 3,954,159 5,000,000 5,000,000 5,000,000
Assumptions:
Utility Payment = 1/12 of O&M+Contingency+Debt Service
minus 1/12 interest earned on all funds, rounded
‘Amount moved to operating fund = 1/12 of O&M expenses plus contingency minus carryforward available
Interest payments move from Revenue Fund to
Debt Service Fund on June 1 & December 1
1/2 of annual principal payments are drawn from Revenue
Fund on December 1 & June 1
Interest receipts are in July & January
R&C Fund is reimbursed in 4 equal annual payments based on expenditures for year
When fund drops below requirement ($Smillion), interest remains in the fund
Operating Reserve Requirement increased at beginning of June to meet first month operating deficit if greater than reserve amount
Page 2 of 2 2004 Bradley Budget.xls, 2/7/03, 11:09 AM
BRADLEY LAKE PROJECTED CASH FLOWS - 2003 Schedule H
Projected
Balance
6/30/02 July August September October November December January Februat March April May June EY Total July
2003 BUDGET
Debt Service - Principal 5,085,000 5,085,000
Debt Service - Interest 3,591,538 0 3,591,538 7,183,075
Total Debt Service 0 0 0 0 0 3,591,538 0 0 0 0 0 8,676,538 12,268,075
OPERATING FUND
Operating Budget 0 200,000 1,026,930 0 0 0 436,674.94 239,635 239,635 239,635 239,635 239,635 2,861,780
Renewals & Replacements 0 0 0 1,021,457 1,021,457
Purchase New Vehicle 0 0 29,130 0 0 0 0 0 0 0 0 0 29,130
TOTAL REQUIREMENTS _ ___ _ _ 16,180,442
INTEREST INCOME
Capital Reserve 79,143 79,631 80,122 80,616 81,113 81,614 82,117 79,649 80,141 80,635 81,132 81,632 967,545
R&C Fund 30,833 29,411 29,593 29,775 29,959 30,144 30,330 25,186 23,938 24,086 24,235 24,384 331,874
Operating Reserve 3,299 3,320 3,340 3,361 3,381 3,402 3,423 3,320 3,341 3,361 3,382 3,403 40,333
Debt Service Fund 0 0 0 0 0 0 15,679 15,775 15,873 15,971 16,069 489 79,856
113,276 112,362 113,055 113,752 114,454 115,159 131,548 123,931 123,292 124,053 124,818 109,909 1,419,608
Operating Fund 5,542 6,192 3,680 1,589 2,831 4,081 3,845 3,016 2,789 2,561 2,332 2,101 40,560.
SUBTOTAL 118,818 118,554 116,735 115,341 117,285 119,241 135,393 126,947 126,082 126,614 127,149 112,009 1,460,168
Revenue Fund 15,018 20,268 26,565 32,901 39,276 45,691 18,672 23,851 30,170 36,529 42,926 11,537 343,404
INTEREST INCOME 133,836 138,822 143,300 148.242 156,561 164.931 154,065 150,798 156,252 163,143 170,076 123,546 1,803,572
YTD INTEREST INCOME 133,836 272,658 415,958 564,200 720,762 885,693 1,039,758 1,190,556 1,346,808 1,509,951 1,680,026 1,803,572
EREST RECEIVED 773,660 885,693 1,659,353 917,879
FUND BALANCES
6/30/02
REVENUE FUND
Beginning Balance in Revenue Fund 660,770 2,285,785 3,306,960 4,334,434 5,368,243 6,408,427 7,455,026 2,866,827 3,891,586 4,922,664 5,960,101 7,003,935 660,770 697,200
Utility Payments 1,200,768 1,200,768 1,200,768 1,200,768 1,200,768 1,200,768 1,200,768 1,200,768 1,200,768 1,200,768 1,200,768 1,200,768 14,409,216
Transfer to Debt Service - Principal (2,542,500) (2,542,500) (5,085,000)
Transfer toDebt Service - Interest 0 (3,591,538) 0 (3,591,538) (7,183,075)
To Operating Fund (199,860) (199,860) (199,860) (199,860) (199,860) (199,860) (199,860) (199,860) (199,860) (199,860) (199,860) (199,860) (2,398,320)
Reimbursement of refunding costs 0 0
Transfer to R&C Fund (1,021,457) (1,021,457)
Arbitrage transfer (164,571) (164,571)
Reduction on Capital Reserve 0 0
Interest Accrued 15,018 20,268 26,565 32,901 39,276 45,691 18,672 23,851 30,170 36,529 42,926 11,537 343,404
Interest Accrual Reversal (179,720) (163,685) (343,404)
Interest Receipts & Transfers 773,660 0 i} 0 0 0 705,978 0 0 0 0 1,479,638 765,721
End of Month Balance 660,770 2,285,785 3,306,960 4,334,434 5,368,243 6,408,427 7,455,026 2,866,827 3,891,586 4,922,664 5,960,101 7,003,935 697,200 697,200 1,462,921
OPERATING FUND
Balance Operating Fund 698,890 904,292 910,344 57,825 259,274 461,965 665,906 409,020 372,261 335,275 298,061 260,618 698,890 222,943
Interest 5,542 6,192 3,680 1,589 2,831 4,081 3,845 3,016 2,789 2,561 2,332 2,101 40,560
Interest transferred (23,916) (23,916) (16,644)
Transfers from Revenue Fund 199,860 199,860 199,860 199,860 199,860 199,860 199,860 199,860 199,860 199,860 199,860 199,860 2,398,320 0
Transfers from Operating Reserve 0 0 0 0 0 0 0 0 0 0 0 0 0
To Operating Reserve 0 0
Purchase of Vehicle 0 0 (29,130) 0 0 0 0 0 0 0 0 0 (29,130)
Page 1 of 2 2004 Bradley Budget.xls, 2/7/03, 11:09 AM
BRADLEY LAKE BUDGET
ACTIVITY BY ACCOUNT
SCHEDULE G
6/30/2001 Balance
FY2002
Debt Payment 7/1/01
Revenues
Interest
Transfers to O&M
Transfers to Debt Service
01 O&M Requisitions
2002 O&M Redquisitions
Vehicle Purchase
Renewals/Replacements
Payback of R&C Fund
To Excess Earnings fund
Reduction in Capital Res
Debt Payments
6/30/2002 Balance
FY2003 Projected
Debt Payment 7/1/02
Revenues
Interest
Transfers to O&M
Transfers to Debt Service
02 O&M Requisitions
2003 O&M Requisitions
Purchase Vehicle
Renewals/Replacements
Payback of R&C Fund
To Excess Earnings fund
Reduction in Capital Res
Debt Payments
6/30/2003 Projected Balance
FY2004 Budget
Revenues
Interest
Transfers to O&M
Transfers to Debt Service
Payback of R&C Fund
2003 O&M Requisitions
Renewals/Replacements
To Excess Earnings fund
Reduction in Capital Res
Debt Payments
Increase Op Reserve
6/30/2004 Projected Balance
Rev Fund O&M Fund Debt Fund Op Reserve R&C Cap Reserve Total
158,161 326,073 8,434,101 535,000 5,000,010 12,834,000 27,287,345
(8,434,100) (8,434,100)
13,765,790 13,765,790
1,772,284 (9) - 1,772,275
(2,572,597) 2,572,597 (0)
(12,273,450) 12,273,450 - - -
(2,199,780) (2,199,780)
(47,200) (47,200)
(47,200) 47,200 0
(142,219) (142,219)
(3,724,225) (3,724,225)
660,770 698,890 8,549,226 535,000 5,000,001 12,834,000 28,277,887
(8,549,225) (8,549,225)
14,409,216 14,409,216
1,479,638 331,874 : 1,811,512
(2,398,320) 2,398,320 -
(12,268,075) 12,268,075 - - -
(500,596) (500,596) (2,361,183) (2,361,183)
(29,130)
- (1,353,332) (1,353,332)
(1,021,457) 1,021,457 -
(164,571) (164,571)
(12,268,075) (12,268,075)
697,200 206,301 4 535,000 5,000,000 12,834,000 19,301,633 *
23% of Annual O&M Budget
13,301,810 = 13,301,810
1,430,584 326,840 1,757,423
(2,793,905) 2,793,905 : -
(12,273,400) 12,273,400 -
(162,289) 149,789 (12,500) (2,945,206) - (2,945,206)
- (800,000) - (800,000)
(200,000) (200,000)
(12,273,400) (12,273,400)
(55,000) 55,000 :
oO (0) 1 590,000 4,676,629 12,834,000 18,129,760
a
20.033% of Annual O&M Budget
Page 1 of 1 2/7/03/11:09 AM, 2004 Bradley Budget.xis
BRADLEY LAKE OPERATIONS & MAINTENANCE
Schedule F
Budget vs Projected
FERC 924 - Property 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)
Spillway Seepage Water and Pressure Study
5 Year Inspection & Follow-up
TOTAL BRADLEY LAKE BUDGET
ACTUALS 1/8/03 CHANGE
FY02 FY2003 FY2003 FY2003 FROM
ACTUALS YTD 1/6/03 BUDGET PROJECTED BUDGET
317,096 464,487 405,000 464,487 59,487
43,787 20,799 30,000 27,500 (2,500)
0 0 0 0
360,883 485,286 435,000 | 491,987 56,987
136,369 0 106,000 143,187 37,187
36,054 304 31,500 31,500 0
0
5,870 80,000 15,870 (64,130)
0
172,423 6,174 | 217,500 190,557 (26,943)
| | 2,236,318 1,163,007 2,474,436 2,361,183 113,253
Page 4 of 4 2/7/03/11:09 AM, 2004 Bradley Budget. xls
BRADLEY LAKE OPERATIONS & MAINTENANCE
Schedule F
Budget vs Projected
ACTUALS 1/8/03 CHANGE
FY02 FY2003 FY2003 FY2003 FROM
ACTUALS YTD 1/6/03 BUDGET PROJECTED BUDGET
FERC 556 - System Control & Load Dispatching
HEA O&M Contract 9,890 0 6,000 1,400 (4,600)
CEA Dispatch & Software 0 0 0 0
NOAA Weather Service 0 0 7,040 7,040 0
SCS Snow Measurement 8,450 21,450 29,450 21,450 (8,000)
UAA Seismic monitoring 56,500 0 56,500 56,500 0
USGS Streamguaging 136,290 125 142,000 141,690 (310)
USGS Minimum Flow Study 0 0 0
211,131 | 213575 240,990 228,080 (12,910)
FERC 562 - Station Expenses
CEA SVC/Substation Maintenance Contract 68,000 24,320 43,680
24,320 (43,680)
FERC 571 - Maintenance of Overhead Lines
HEA Overhead Line Maintenance 38,752 0 20,600 20,000 (600)
38,752 0 20,600 20,000 (600)
FERC 920 - Administrative Expense 0
Payroll cost for COI
AEA Admin Fee 200,000 200,000 200,000 200,000 0
Workers comp refund 0 0
AEA Administrative Costs 200,000 200,000 200,000 200,000 0
PMC Costs
Bradley Lake Audit fees 6,592 0 8,500 8,500 0
Bradley Lake PMC Legal 15,551 770 10,000 10,000 0
Bradley Lake Arbitrage Report 6,000 6,000 6,000 6,000 0
Miscellaneous PMC Expenses 0 0
Budget, recording, courier 0 0 0
Bradley Lake Trustee fees 17,595 8,797 20,000 20,000 0
PMC Costs 45,738 15,567 0
Bond Refunding Costs 0
Costs to be reimbursed at closing 0 0
Refunding Costs 0
TOTAL FERC 920 245,738 215,567 244,500
Page 3 of 4 2/7/03/11:09 AM, 2004 Bradley Budget.xis
BRADLEY LAKE OPERATIONS & MAINTENANCE
Schedule F
Budget vs Projected
ACTUALS 1/8/03 CHANGE
FY02 FY2003 FY2003 FY2003 FROM
ACTUALS YTD 1/6/03 BUDGET PROJECTED BUDGET
222,431 67,846 354,100 163,800 (190,300)
FERC 539 - Misc. Hydraulic Power Generation Expenses
HEA O&M Contract 134,728 93,172 148,100 280,200 132,100
DIS Voice/Data Circuits (inc. space & power) 6,904 0 10,000 6,904 (3,096)
DIS 2-way Radio Circuits & radio maint. 9,189 0 7,000 9,189 2,189
HEA Circuits and Radio-To Bernice Lake 90,000 37,500 90,000 90,000 0
CEA Circuits-Bernice Lake to Anchorage 28,746 11,978 28,746 28,746 0
Other 389 0 0
269,956 142,649 283,846 415,039 131,193
FERC 540 - Rents
Bradley Lake FERC land use fees (5% increase bu 68,078 0 76,000 72,000 (4,000)
68,078 0 76,000 72,000 (4,000)
FERC 542 - Maintenance of Structures
HEA O&M Contract 28,160 28,339 39,000 84,300 45,300
Boat Dock Repairs 0 0 0 0 0
28,160 28,339 39,000 84,300 45,300
FERC 543 - Maintenance of Reservoirs, Dams & Waterways
Miscellaneous Maintenance 4,140 0 0 0
HEA O&M Contract 1,185 5,100 0 (5,100)
Nuka Diversion 0 0 0 0
5,325 0 5,100 0 (5,100)
FERC 544 - Maintenance of Electric Plant
HEA O&M Contract 363,911 91,198 284,000 222,600 (61,400)
HEA-Transformer fire repairs 0 0 0 0
363,911 91,198 284,000 222,600 (61,400)
FERC 545 - Maintenance of Misc. Hydraulic Plant
HEA O&M Contract 83,225 36,222 92,000 74,700 (17,300)
Misc. 0 0 0 0
83,225 36,222 92,000 74,700 (17,300)
Page 2 of 4 2/7/03/11:09 AM, 2004 Bradley Budget.xls
BRADLEY LAKE OPERATIONS & MAINTENANCE
Schedule F
Budget vs Projected
ACTUALS 1/8/03 CHANGE
FY02 FY2003 FY2003 FY2003 FROM
ACTUALS YTD 1/6/03 BUDGET PROJECTED BUDGET
SUMMARY
HEA O&M Contract Total 992,234 367,055 1,042,100 956,300 (85,800)
CEA Substation/SVC Maintenance 17,602 17,873 68,000 24,320 (43,680)
Other O&M 443,299 71,053 467,336 453,519 (13,817)
0
Insurance Costs 360,883 485,286 435,000 491,987 56,987
0
Regulatory Costs 172,423 6,174 217,500 190,557 (26,943)
1,986,440 947,440 2,229,936 2,116,683 (113,253)
Administrative Costs 245,738 215,567 244,500 244,500 0
2,232,178 1,163,007 2,474,436 2,361,183 (113,253)
Bond Refunding Costs 0 0 0 0 0
2,232,178 1,163,007 2,474,436 2,361,183 (113,253)
FERC 535 - Operation Supervision & Engineering
HEA O&M Contract 139,794 50,278 94,200 129,300 35,100
Other
139,794 50,278 94,200 129,300 35,100
FERC 537 - Hydraulic Expenses
HEA O&M Contract 8,909 0 19,600 0 (19,600)
Other 0
8,909 0 | 19,600 0 (19,600)
FERC 538 - Electric Expenses
HEA O&M Contract 222,431 67,846 354,100 163,800 (190,300)
Page 1 of 4 2/7/03/11:09 AM, 2004 Bradley Budget.xls
BRADLEY LAKE OPERATIONS & MAINTENANCE
SCHEDULE E
116/03 CHANGE CHANGE
FY02 FY03 FY2003 FROM FY03 FROM ‘03 FY2004
ACTUALS BUDGET PROJECTED BUDGET PROJECTED BUDGET
FERC 920 - Administrative Expense
Payroll Cost for COI 0
AEA Admin Fee 200,000 200,000 200,000 0 0 200,000
Workers comp refund 0 0
AEA Administrative Costs 200,000 200,000 200,000 0 0 200,000
PMC Costs
Bradley Lake Audit fees 6,592 8,500 8,500 0 0 8,500
Bradley Lake PMC Legal 15,551 10,000 10,000 0 0 10,000
Bradley Lake Arbitrage Report 6,000 6,000 6,000 0 0 6,000
Miscellaneous PMC Expenses 0 0 0
Budget, recording, courier 0 0 0 0 0
Bradley Lake Trustee fees 17,595 20,000 20,000 0 0 20,000
PMC Costs 45,738 44,500 44,500 0 0 44,500
Bond Refunding Costs
Costs to be reimbursed at closing 0 0 0 0
Refunding Costs 0 0 0 0 0 0]
TOTAL FERC 920 245,738 244,500 244,500 0 0 244,500
FERC 924 - Property Insurance
Insurance Premiums 317,096 405,000 464,487 60,000 513 465,000
Homer Electric Insurance 43,787 30,000 27,500 0 2,500 30,000
RSA with Risk Management 0 0 0 0 0 0
Risk Assessment 25,000
360,883 435,000 491,987 60,000 3,013 520,000
FERC 928 - Regulatory Commission Expenses
FERC administrative fees 136,369 106,000 143,187 44,000 6,813 150,000
Contractual Engineer - FERC license issues 36,054 31,500 31,500 0 0 31,500
Spillway Seepage Water and Pressure Study 80,000 15,870 (15,870) 48,260 64,130
Reimb from Construction Fund (prior year) 0 0 0
5 Year Inspection & Follow-up 0 0 0
172,423 217,500 190,557 28,130 55,073 245,630
TOTAL BRADLEY LAKE BUDGET 2,236,318 2,474,436 2,361,183 445,770 559,023 | 2,945,206
YTD BUDGET |
Page 3 of 3 2/7/03/11:09 AM, 2004 Bradley Budget.xls
BRADLEY LAKE OPERATIONS & MAINTENANCE
SCHEDULE E
1/6/03 CHANGE CHANGE
FY02 FY03 FY2003 FROM FY03 FROM '03 FY2004
ACTUALS BUDGET PROJECTED BUDGET PROJECTED BUDGET
HEA - Transformer Fire 0 0 0
363,911 284,000 222,600 4,400 65,800 288,400
FERC 545 - Maintenance of Misc. Hydraulic Plant
HEA O&M Contract 83,225 92,000 74,700 228,600 245,900 320,600
Misc. 0 0 0 0 0 0
83,225 92,000 74,700 228,600 245,900 320,600
FERC 556 - System Control & Load Dispatching
HEA O&M Contract 9,890 6,000 1,400 6,200 10,800 12,200
CEA Dispatch & Software 0 0 0 0 0
NOAA Weather Service 0 7,040 7,040 0 0 7,040
SCS Snow Measurement 8,450 29,450 21,450 12,540 20,540 41,990
UAA Seismic monitoring 56,500 56,500 56,500 0 0 56,500
USGS Streamguaging 136,290 142,000 141,690 5,000 5,310 147,000
USGS Minimum Flow Study 0 0 0 0
211,131 240,990 228,080 23,740 36,650 264,730
FERC 562 - Station Expenses
CEA SVC/Substation Maintenance Contract 17,602 68,000 24,320 5,000 48,680 73,000
17,602 68,000 24,320 5,000 48,680 73,000
FERC 571 - Maintenance of Overhead Lines
HEA Overhead Line Maintenance 38,752 20,600 20,000 0 600 20,600
38,752 20,600 20,000 0 600 20,600
I q
Page 2 of 3 2/7/03/11:09 AM, 2004 Bradley Budget.xls
BRADLEY LAKE OPERATIONS & MAINTENANCE
SCHEDULE E
1/6/03 CHANGE CHANGE
FY02 FY03 FY2003 FROM FY03 FROM '03 FY2004
ACTUALS BUDGET PROJECTED BUDGET PROJECTED BUDGET
FERC 535 - Operation Supervision & Engineering
HEA O&M Contract 139,794 94,200 129,300 98,600 63,500 192,800
Other 0 0
139,794 94,200 129,300 98,600 63,500 192,800
FERC 537 - Hydraulic Expenses
HEA O&M Contract 8,909 19,600 0 20,300 39,900 39,900
Other 0 0 0
8,909 19,600 0 20,300 39,900 39,900
FERC 538 - Electric Expenses
HEA O&M Contract 222,431 354,100 163,800 (290,300) (100,000 63,800
222,431 354,100 163,800 (290,300) (100,000) 63,800
FERC 539 - Misc. Hydraulic Power Generation Expenses
HEA O&M Contract 134,728 148,100 280,200 62,800 (69,300) 210,900
DIS Voice/Data Circuits (inc. space & power) 6,904 10,000 6,904 0 3,096 10,000
DIS 2-way Radio Circuits & radio maint. 127,935 7,000 9,189 0 (2,189) 7,000
HEA Circuits and Radio - To Bernice Lake 90,000 90,000 0 0 90,000
Other 389
CEA Circuits -Bernice Lake to Anchorage 28,746 28,746 0 0 28,746
269,956 283,846 415,039 62,800 (68,393) 346,646
FERC 540 - Rents
Bradley Lake FERC land use fees (5% increase bt 68,078 76,000 72,000 (1,000) 3,000 75,000
68,078 76,000 72,000 (1,000) 3,000 75,000
FERC 542 - Maintenance of Structures
HEA O&M Contract 28,160 39,000 84,300 (3,700) (49,000) 35,300
Boat Dock Repairs 0 0 0 0 0 0
28,160 39,000 84,300 (3,700) (49,000) 35,300
FERC 543 - Maintenance of Reservoirs, Dams & Waterways
HEA O&M Contract 1,185 5,100 0 209,200 214,300 214,300
Misc. Maint. 4,140 0 0 0
5,325 5,100 0 209,200 214,300 214,300
FERC 544 - Maintenance of Electric Plant
HEA O&M Contract 363,911 284,000 222,600 4,400 65,800 288,400
Page 1 of 3 2/7/03/11:09 AM, 2004 Bradley Budget.xls
SCHEDULE D
FY03 R&C Fund Payback
Detail
Budget Actuals
Description Funding Source $ Amount $ Amount Variance
Needle Repairs R&C Fund 240,250.00 6,600.84 (233,649.16)
Runner Repairs R&C Fund 68,750.00 14,167.91 (54,582.09)
SCADA R&C Fund 77,500.00 26,431.11 (51,068.89)
Governor R&C Fund 187,500.00 - (187,500.00)
Payback of FY02 R&C Fund Distributions $ 574,000.00 $47,199.86 $ (526,800.14)
Needle Repairs R&C Fund 365,250.00 (365,250.00)
Runner Repairs R&C Fund 131,250.00 (131,250.00)
SCADA R&C Fund 77,500.00 (77,500.00)
Governor R&C Fund 500,000.00 (500,000.00)
Payback of FY03 R&C Fund Distributions $1,074,000.00 $ 2 $ (1,074,000.00)
Total Payback to R&C Fund $ 1,648,000.00 $47,199.86 $ (1,600,800.14)
BRADLEY LAKE
MONTHLY UTILITY CONTRIBUTION
SCHEDULE C
POWER PURCHASER
CHUGACH ELECTRIC
MUNICIPALITY OF ANCHORAGE .
AEG&T
GOLDEN VALLEY ELECTRIC
CITY OF SEWARD
POWER PURCHASER
CHUGACH ELECTRIC
MUNICIPALITY OF ANCHORAGE
AEG&T
GOLDEN VALLEY ELECTRIC
CITY OF SEWARD
COMPONENTS OF CHANGE IN CONTRIBUTION
FY2003 ANNUAL CONTRIBUTION
INCREASE IN BUDGETED INTEREST EARNINGS
INCREASE IN BUDGETED O&M COSTS
DECREASE IN PAYBACK TO R&C FUND
INCREASE IN DEBT SERVICE
DECREASE IN BUDGETED USE OF PRIOR YEAR ACCUMULATED SURPLUS
FY03 PROJECTED SURPLUS
INCREASE IN OPERATING RESERVE REQUIREMENT
FY2004 ANNUAL CONTRIBUTION
PERCENT FY2002 FY2003 FY 2004 FY2004 SHARE TOTAL TOTAL TOTAL | DECREASE
30.4% 4,184,800 4,380,394 4,043,750} (336,644) 25.9% 3,565,335 3,731,988 3,445,164] (286,824) 25.8% 3,551,573 3,717,576 3,431,868} (285,708) 16.9% 2,326,417 2,435,160 2,248,008} (187,152) 1.0% 137,658 144,096 133,020 (11,076)
100.0% 13,765,783 14,409,214 13,301,810 (1,107,404)
PERCENT _FY2002 FY2003 FY2004 FY2004 SHARE MONTHLY MONTHLY | MONTHLY | DECREASE
30.4% 358,894 365,033 336,979 (28,054) 25.9% 305,768 310,999 287,097 (23,902) 25.8% 304,588 309,798 285,989 (23,809) 16.9% 199,517 202,930 187,334 (15,596) 1.0% 11,806 12,008 11,085 (923)
100.0% 1,180,573 1,200,768 1,108,484
mae
14,409,214
(48,176) 470,770 ( % (911,711) 5,325 (903,501) 224,888 55,000 13,301,809
1
2/7/03/11:35 AM,h;all\elaine\bradley\ 2004 Bradley Budget.xls
Schedule B: BRADLEY LAI PERATIONS & MAINTENANCE
FY2002 FY2003 FY2004
G/L ACCOUNT BUDGET BUDGET BUDGET
FERC 562 - Station Expenses
E1201-56200-24312 CEA SVC/Substation Maintenance Contract 73,000 68,000 73,000
73,000 68,000 73,000
FERC 571 - Maintenance of Overhead Lines
E1201-57100-24301 HEA Overhead Line Maintenance 20,000 20,600 20,600
20,000 20,600 20,600
FERC 920 - Administrative Expense
E1201-58300-00000 AEA Admin Fee 200,000 200,000 200,000
AEA Administrative Costs 200,000 200,000 200,000
PMC Costs
E1201-58301-00000 Bradley Lake Audit fees 8,500 8,500 8,500
E1201-58302-00000 Bradley Lake PMC Legal 10,000 10,000 10,000
E1201-58303-00000 Bradley Lake Arbitrage Report 4,500 6,000 6,000
E1201-58305-00000 Bradley Lake Trustee fees 20,000 20,000 20,000
PMC Costs 43,000 44,500 44,500
TOTAL FERC 920 243,000 244,500 244,500
FERC 924 - Property Insurance
E1201-58401-00000 PMC Directors & Officer's Insurance 0 0 0
E1201-58401-00000 Insurance Premiums 270,000 405,000 465,000
E1201-58401-24301 Homer Electric Insurance 30,900 30,000 30,000
E1201-58402-00000 RSA with Risk Management 3,900 0 0
Risk Assessment 25,000
304,800 435,000 520,000
FERC 928 - Regulatory Commission Expenses
E1201-58800-00000 FERC administrative fees 93,000 106,000 150,000
E1201-58801-00000 Contractual Engineer - FERC license issues 30,000 31,500 31,500
E1201-58801-00000 Spillway Seepage Water and Pressure Study 80,000 64,130
123,000 217,500 245,630
TOTAL BRADLEY LAKE BUDGET 2,398,134 2,474,436 2,945,206
Page 3 of 3 2/7/03/11:08 AM, 2004 Bradley Budget.xls
Schedule B: BRADLEY LAI PERATIONS & MAINTENANCE
FY2002 FY2003 FY2004
G/L ACCOUNT BUDGET BUDGET BUDGET
FERC 535 - Operation Supervision & Engineering
E1201-53500-24301 HEA O&M Contract 80,300 94,200 192,800
80,300 94,200 192,800
FERC 537 - Hydraulic Expenses
E1201-53700-24301 HEA O&M Contract 10,300 19,600 39,900
10,300 19,600 39,900
FERC 538 - Electric Expenses
E201-53800-24301 HEA O&M Contract 433,300 354,100 63,800
433,300 354,100 63,800
FERC 539 - Misc. Hydraulic Power Generation Expenses
E1201-53900-24301 HEA O&M Contract 111,900 148,100 210,900
E1201-53900-24302 DIS Voice/Data Circuits (inc. space & power) 0 10,000 10,000
E1201-53900-24303 DIS 2-way Radio Circuits & radio maint. 0 7,000 7,000
HEA Circuits and Radio - To Bernice Lake 90,000 90,000 90,000
CEA Circuits -Bernice Lake to Anchorage 27,684 28,746 28,746
229,584 283,846 346,646
FERC 540 - Rents
E1201-54000-000 Bradley Lake FERC land use fees (5% increase bt 73,000 76,000 75,000
73,000 76,000 75,000
FERC 542 - Maintenance of Structures
E1201-54200-24301 HEA O&M Contract 54,800 39,000 35,300
E1201-54200-24302 Boat Dock Repairs 0 0 0
54,800 39,000 35,300
FERC 543 - Maintenance of Reservoirs, Dams & Waterways
E1201-54300-24301 HEA O&M Contract 5,500 5,100 214,300
E1201-54300-24302 Nuka Diversion Washout Repairs.
5,500 5,100 214,300
FERC 544 - Maintenance of Electric Plant
E1201-54400-24301 HEA O&M Contract 400,900 284,000 288,400
400,900 284,000 288,400
FERC 545 - Maintenance of Misc. Hydraulic Plant
E1201-54500-24301 HEA O&M Contract 90,700 92,000 320,600
90,700 92,000 320,600
FERC 556 - System Control & Load Dispatching
E1201-55600-24301 HEA O&M Contract 5,600 6,000 12,200
E1201-55600-24306 NOAA Weather Service 42,500 7,040 7,040
E1201-55600-24307 SCS Snow Measurement 12,350 29,450 41,990
E1201-55600-24308 UAA Seismic monitoring and reporting 56,500 56,500 56,500
E1201-55604-00000 USGS Streamguaging 139,000 142,000 147,000
255,950 240,990 264,730
Page 2 of 3 2/7/03/11:08 AM, 2004 Bradley Budget.xls
Schedule B: BRADLEY LAt PERATIONS & MAINTENANCE
FY2002 FY2003 FY2004
G/L ACCOUNT BUDGET BUDGET BUDGET
SUMMARY
HEA O&M Contract Total 1,193,300 1,042,100 1,378,200
CEA Dispatch and Substation/SVC Maintenance 73,000 68,000 73,000
Other O&M 461,034 467,336 483,876
Insurance Costs 304,800 435,000 520,000
Regulatory Costs 123,000 217,500 245,630
2,155,134 2,229,936 2,700,706
Administrative Costs 243,000 244,500 244,500
2,398,134 2,474,436 2,945,206
Bond Refunding Costs 0 0 0
2,398,134 2,474,436 2,945,206
Page 1 of 3 2/7/03/11:08 AM, 2004 Bradley Budget.xls
BRADLEY LAKE HYDROELECTRIC PROJECT
Schedule A
REVENUES, EXPENSES & CHANGES IN SURPLUS
REVENUES
UTILITY CONTRIBUTIONS
INTEREST INCOME
EXCESS FROM BOND PROCEEDS,
REFUND OF COST OF ISSUANCE FROM BONDS
SALE OF VEHICLE
AEA SETTLEMENT
MISCELLANEOUS INCOME
EXPENSES: OPERATIONS
RENEWALS/REPLACEMENTS
PURCHASE NEW VEHICLE
TRANSFER TO OPERATING RESERVE
BOND REFUNDING COSTS
DEBT SERVICE (net of Capital Reserve Reductions)
ARBITRAGE TRANSFER
CURRENT YEAR
SURPLUS (DEFICIT)
BEGINNING SURPLUS
ENDING SURPLUS (DEFICIT)
BALANCE SHEET
ASSETS REVENUE FUND
OPERATING FUND
RECEIVABLES
LIABILITIES & SURPLUS LIABILITIES
SURPLUS
OTHER INFORMATION
OPERATING RESERVE *
MONTHLY CONTRIBUTIONS
* Required to be 20% of budgeted operating expense
1/7103 FY98 FY99 Fy00 FY02 FY2003 FY03 FY2004 ACTUALS ACTUALS ACTUALS ACTUALS BUDGET FORECAST BUDGET
13,210,675 13,843,841 11,813,741 13,765,790 14,409,214 14,409,216 13,301,810 1,845,862 1,837,883 1,801,425 4,772,285 4,382,409 1,479,638 1,430,584
37,008 0 0 O 0 0 0 0 1,477 0 0 0 0 0 0 0 0 0 0 0 0 0 o 0 ° 75,058,014 75,681,724 13,652,174 15,538,075 15,791,623 75,888,654 14,732,394
1,748,691 1,905,324 2,399,918 2,236,317 2,474,436 2,361,183 2,945,206 23,832 25,764 0 47,200 1,074,000 4,021,457 162,289 0 29,130 0 0 0 0 ° 0 55,000 294,124 (283,289) (10,836) 0 0 0 0 13,017,785 13,746,181 11,779,859 12,273,450 12,268,075 12,268,075 12,273,400 27,976 34,110 20,600 142,219 200,000 164,571 200,000
15,112,408 15,428,090 14,189,541 14,699,186 16,016,511 15,844,416 15,635,895
(54,394) 253,634 (637,367) 838,889 (224,888) 44,438
575,012 520,618 774,252 20,174 224,887 859,063,
__ 236,885 _ 859,063
481,136 135,622 158,075 660,770 - 697,200
296,292 1,099,686 997,420 698,889 - 206,301
777,426 7,235,308 7,155,495 7,359,659 :
256,810 461,056 918,610 500,596 : 520,618 774,252 859,063 777,428 7,235,308
535,000
1,100,890
535,000
1,153,653
535,000
1,180,572
535,000 535,000
1,200,768 1,200,768
2/7103/11:07 AM, h:all\elaine\bradley2004 Bradley Budget. xis
ATTACHMENT 2
BRADLEY LAKE PR) 3CT MANAGEMENT COMMITTEE
OPERATING AND REVENUE FUNDS
STATEMENTS OF EXPENSES
Years ended June 30, 2002 and 2001
Dat
Expenses:
Generation expense:
Operation supervision
and engineering
Hydraulic operation
Electric plant operation
Hydraulic power
generation operation
FERC land use fees
Structure maintenance
Reservoir, dam, and
waterway maintenance
Electric plant maintenance
Hydraulic plant maintenance
System control and load dispatching
Substation operation
and maintenance
Overhead line maintenance
Total generation expense
Administrative, general and
regulatory expense:
Insurance
AEA administrative fee
PMC costs
Arbitrage expense
Regulatory commission:
FERC administrative fees
FERC licensing
Total administrative, general
and regulatory expense
Total operations and
maintenance expenses
Capital project reimbursement
Total operations and
maintenance expenses
2002
Variance
Favorable 2001
Budget Actual (Unfavorable) Actual
$ 80,300 $ 139,794 $ (59,494) $ 79,464
10,300 8,909 1,391 3,500
433,300 222,431 210,869 196,884
229,584 269,956 (40,372) 218,187
73,000 68,078 4,922 69,278
54,804 28,160 26,644 33,652
5,500 5,325 175 1,879
400,900 363,911 36,989 356,432
90,700 83,225 7,475 64,467
255,946 211,130 44,816 196,426
73,000 17,602 55,398 42,987
20,000 38,752 (18,752) 19,219
1,727,334 1,457,273 270,061 1,282,375
304,800 360,883 (56,083) 303,956
200,000 200,000 - 200,000
43,000 45,738 (2,738) 42,753
200,000 142,219 57,781 19,327
93,000 136,369 (43,369) 96,324
30,000 36,054 (6,054) 12,527
870.800 921,263 (50.463) 674,887
2,598,134 2,378,536 219,598 1,957,262
609,000 47,200 561.800 -
$ 3,207,134 $ 2,425,736 §$ 781,398 $ 1,957,262
10
Drake
Independent Auditor’s Report on Additional Information
Bradley Lake Project Management Committee
Anchorage, Alaska
Our report on our audits of the special-purpose financial statements of the Bradley Lake Project
Management Committee Operating and Revenue Funds for the years ended June 30, 2002 and
2001 appears on the page preceding the balance sheets. Those audits were conducted for the
purpose of forming an opinion on the special-purpose financial statements taken as a whole. The
supplemental special-purpose Statements of Expenses are presented for purposes of additional
analysis and are not a required part of the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audits of the special-purpose financial
statements and, in our opinion, is fairly stated in all material respects in relation to the special-
purpose financial statements taken as a whole. oye: Parisena, Stromberg & Company, APC
Anchorage, Alaska
December 11, 2002
BRADLEY LAKE P..~ JECT MANAGEMENT COMMIT. —E
OPERATING AND REVENUE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2002 and 2001
NOTE C: MAJOR CONTRACTS AND AGREEMENTS (Continued
An operation and maintenance agreement dated February 11, 1994, was executed between
Homer Electric Association, Inc. and the Alaska Energy Authority. This agreement provides for
the operation and maintenance of the Bradley Lake Hydroelectric Project by Homer Electric
Association, Inc. The agreement is through June 30, 2004 and continues from year to year
thereafter, except upon written notice to terminate by either party. Notice of termination must
be given one year in advance of the termination date. HEA is to be reimbursed for costs
associated with the operation, maintenance and repair of the Project as determined in advance
through the submission of an annual budget based upon prudent estimates and anticipated
operation and maintenance costs. In August, 1996, the agreement was amended to separate the
maintenance of the transmission facilities from the hydroelectric project. The transmission
agreement continues from year to year, except upon written notice to terminate by either party.
Notice of termination must be given six months in advance of termination dates. In June, 1999
the agreement was again amended to require HEA to provide communication services in addition
to the other services.
NOTE D: RELATED PARTY TRANSACTIONS
During the years ended June 30, 2002 and 2001, costs incurred under the various contracts with
related parties described in Note C were as follows:
2002 2001
Homer Electric Association, Inc. — operation,
maintenance and communications $ 1,193,519 $ 1,001,155
Chugach Electric Association, Inc. — substation
service maintenance $ 17,602 $ 42,987
For the years ended June 30, 2002 and 2001, Chugach Electric Association, Inc. provided
dispatch services to the Committee at the budgeted amount which is zero.
BRADLEY LAKE P..~ JECT MANAGEMENT COMMIT . E
OPERATING AND REVENUE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2002 and 2001
NOTE B: INVESTMENTS (Continued
Investments are sold as needed to cover operating requisitions submitted to the trustee and are
therefore considered to be short-term and available for sale. Investments are presented at
aggregate cost, which approximates market value.
For purposes of the cash flow statements, management considers the full amount of the
investment balance to be cash available for operations.
NOTE C: MAJOR CONTRACTS AND AGREEMENTS
During May 1994, the Alaska Energy Authority entered into the Master Maintenance and
Operating agreement with the Committee. The purpose of the agreement is to establish contract
administration and budgeting procedures for maintenance and operation contracts of the Bradley
Lake Hydroelectric Project and to provide for the lease or other use of facilities and equipment
in a manner consistent with the requirements of the Power Sales Agreement. The term of the
Master Agreement is indefinite, remaining in effect until termination of the Power Sales
Agreement or until AEA no longer legally exists. This agreement authorizes AEA to enter into
any contracts necessary to perform operating or maintenance-type services to the Project, subject
to the approval of the Committee.
On behalf of the Committee, the AEA entered into an agreement with Chugach Electric
Association, Inc. (CEA) in August, 1996, for the provision of all services necessary to dispatch
the Bradley Project's electric power output. The dispatch agreement runs concurrently with the
wheeling and related services contract entered into by and among the parties to the Power Sales
Agreement in December 1987 and remains in effect for the term of the wheeling agreement
unless CEA ceases to be the output dispatcher.
In August 1996, the Alaska Energy Authority entered into an agreement with CEA on behalf of
the Committee for the provision of maintenance services for the Daves Creek and Soldotna SVC
Substations.
BRADLEY LAKE P_.. JECT MANAGEMENT COMMIT . —E
OPERATING AND REVENUE FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2002 and 2001 i) fie
NOTE A: SIGNIFICANT ACCOUNTING POLICIES (Continued
All deposits, including utility contributions and interest earnings, are made into the Revenue
Fund, which transfers amounts approximately equal to one-twelfth of the annual operating and
maintenance budget into the Operating Fund on a monthly basis. Additional transfers are made
from the Revenue Fund to the Debt Service Fund in order to satisfy semiannual interest payments
and annual principal payments on the Project's outstanding bonds payable.
Interest earnings available for operations and maintenance are derived from the following funds:
Debt Service Fund; Operating Reserve Fund; Operating Fund; Revenue Fund; Capital Reserve
Fund; and the Renewal & Contingency Fund.
Revenue and Expense Recognition: Utility contributions are recognized as revenue when due
to be received under the terms of the Power Sales Agreement. Transfers from other funds are
recognized when the transfer is made and interest earnings are recognized when received.
Operating and maintenance expenses are recognized when incurred, while interest and principal
transfers to Debt Service Fund are recognized when paid. Purchases of fixed asset replacements
are expensed when purchased.
Estimates: The preparation of the special-purpose financial statements of the Operating and
Revenue Funds requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Income Taxes: The Bradley Lake Project Management Committee is exempt from income
taxation under Section 501 (a) of the Internal Revenue Code.
NOTE B: INVESTMENTS
Substantially all of the balances in the following funds are invested in collateralized investment
agreements through the trust department of US Bank. The specified interest rate for monies from
the Operating and Revenue Funds invested in the agreements is 7.38% per annum. Balances at
June 30, 2002 and 2001 are as follows:
2002 2001
Operating Fund $ 698,890 $ 326,073
Revenue Fund 660,769 158,160
Total investments $_ 1,359,659 $484,233
BRADLEY LAKE P... JECT MANAGEMENT COMMIT . —E
OPERATING AND REVENUE FUNDS
NOTES TO FINANCIAL STATEMENTS
June 30, 2002 and 2001
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Description of Business: The Bradley Lake Project Management Committee (the Committee)
was established pursuant to Section 13 of the Agreement for the Sale and Purchase of Electric
Power (Power Sales Agreement) dated December 8, 1987. The purpose of the Committee is to
arrange for the operation and maintenance of the Bradley Lake Hydroelectric Project (the
Project), which became operational in September 1991, and the scheduling, production and
dispatch of power. The members of the Committee include the Alaska Energy Authority (AEA)
and the five purchasers under the Power Sales Agreement - Chugach Electric Association, Inc.;
Golden Valley Electric Association, Inc.; the Municipality of Anchorage (Municipal Light &
Power); the City of Seward (Seward Electric System); and the Alaska Electric Generation &
Transmission Cooperative, Inc. (AEG&T). The Homer Electric Association, Inc. (HEA) and the
Matanuska Electric Association, Inc. (MEA) are additional parties to the Power Sales Agreement
but are included as power purchasers for purposes of representation while AEG&T has no direct
vote as a consequence of the individual representation of HEA and MEA.
Section 13 of the Power Sales Agreement delineates other Committee responsibilities, including:
establishing procedures for each party's water allocation, budgeting for annual Project costs and
calculating each party's required contribution to fund annual Project costs. Committee approval
of operations and maintenance arrangements for the Project, sufficiency of the annual budgets
and wholesale power rates and the undertaking of optional Project work requires a majority
affirmative vote and the affirmative vote of AEA.
The Power Sales Agreement extends until the later of: 1) 50 years after commencement of
commercial operation or 2) the complete retirement of bonds outstanding under the AEA Power
Revenue Bond Resolution along with the satisfaction of all other payment obligations under the
Power Sales Agreement. Renewal options for additional terms exist.
Establishment of Trust Funds: Article V, Section 502 of the Alaska Energy Authority's Power
Revenue Bond Resolution established a Revenue Fund and an Operating Fund, including an
Operating Reserve account, to be held by AEA. In actuality these funds, along with the Debt
Service, Excess Investment Earnings (arbitrage), and various construction funds related to the
Bradley Lake Hydroelectric Project are all held by the Corporate Trust Department of US Bank
in Seattle, Washington.
BRADLEY LAKE P..c JECT MANAGEMENT COMMIT. JE
OPERATING AND REVENUE FUNDS
STATEMENTS OF CASH FLOWS
Years ended June 30, 2002 and 2001
Drake
Cash flows from operating activities:
Excess (deficiency) of revenue over
expenses, fixed asset replacements
and debt service
Adjustments to reconcile excess (deficiency) of revenue
over expenses, fixed asset replacements and debt
service to net cash provided by (used in) operating
activities:
Decrease (increase) in accounts receivable
Increase in accounts payable
Increase (decrease) in amounts
due to other funds
Net cash provided by (used in)
operating activities
Available cash and cash equivalents, beginning of year
Available cash and cash equivalents, end of year
Supplemental disclosure of cash flows information:
Interest paid
See accompanying notes to the financial statements.
4
2002
$ 838,889
650
23,080
12,807
875,426
484.233
$_ 1,359,659
$_7,448,440
2001
$ (216,711)
(650) 19,058
(472,959)
(671,262)
1,155,495
$484,233
$_8,044.716
BRADLEY LAKE P | JECT MANAGEMENT COMMIT. —£
OPERATING AND REVENUE FUNDS
STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN SURPLUS
Years ended June 30, 2002 and 2001
pane
2002
Variance
Favorable 2001
Budget Actual (Unfavorable) Actual
Revenue:
Utility contributions $ 13,765,782 . $13,765,790. $ 8 $12,488,023
Interest receipts 1,696,000 1,772,285 76,285 1,759,898
Excess from bond proceeds - - - 130,207
Other miscellaneous - - - 2.139
Total revenue 15,461,782 15,538,075 76,293 14,380,267
Expenses, fixed asset
replacements and debt service:
Operations and maintenance 3,207,134 2,425,736 781,398 1,957,262
Debt service 12,273,450 12,273,450 - 12,639,716
Total expenses, fixed
asset replacements
and debt service 15,480,584 14.699.186 781,398 14,596,978
Excess (deficiency) of revenue
over expenses, fixed asset
replacements and debt
service (18,802) 838.889 857.691 (216,711)
Surplus, beginning of year 18.802 20,174 236.885
Surplus, end of year $ =) $2 859.063) $ 20,174
See accompanying notes to the financial statements.
3
BRADLEY LAKE P... JECT MANAGEMENT COMMI1 . JE
OPERATING AND REVENUE FUNDS
Dia
BALANCE SHEETS
June 30, 2002 and 2001
ASSETS
Current assets:
Investments (Note B)
Accounts receivable
Total assets
LIABILITIES AND SURPLUS
Current liabilities:
Due to other funds
Accounts payable
Total liabilities
Surplus
Total liabilities and surplus
See accompanying notes to the financial statements. nN iS io nN $i: 1°359;659
$_1,359,659
$ 32,267
468.329
500,596
859.063
$1,359,659 nN — —_ $ 484,233
650
$484,883
$ 19,460
445.249
464.709
20,174
$484,883
Dypane
Independent Auditor's Report
Bradley Lake Project Management Committee
Anchorage, Alaska
We have audited the accompanying special-purpose balance sheets of the Bradley Lake Project
Management Committee Operating and Revenue Funds (a project management committee) as
of June 30, 2002 and 2001, and the related special-purpose statements of revenues, expenses and
changes in surplus, and of cash flows for the years then ended. These financial statements are the
responsibility of the Bradley Lake Project Management Committee. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.
The accompanying special-purpose financial statements were prepared for the purpose of
complying with, and in conformity with the trust fund accounting requirements specified in, the
Alaska Energy Authority’s Power Revenue Bond Resolution, as discussed in Note A, and are not
intended to be a presentation in conformity with generally accepted accounting principles.
In our opinion, the special-purpose financial statements referred to above present fairly, in all
material respects, the assets, liabilities and surplus of the Bradley Lake Project Management
Committee Operating and Revenue Funds as of June 30, 2002 and 2001 and its revenue,
expenses and changes in surplus and its cash flows for the years then ended, on the basis of
accounting described in Note A.
This report is intended solely for the information and use of the Bradley Lake Project
Management Committee and is not intended to be and should not be used by anyone other than
this specified Tl
Parisena, Stromberg & Company, APC
Anchorage, Alaska
December 11, 2002
Dani
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
AUDITED FINANCIAL STATEMENTS
AND OTHER FINANCIAL INFORMATION
Dian
BRADLEY LAKE
PROJECT MANAGEMENT COMMITTEE
OPERATING AND REVENUE FUNDS
JUNE 30, 2002 AND 2001
Parisena, Stromberg & Company
A Professional Corporation
ATTACHMENT 1
TO: Bradley Lake PMC Members
FROM: Shauna Dean
AIDEA/AEA
DATE: February 7, 2003
SUBJECT: Attachments for Bradley Lake PMC Packet
Attached are two documents to be included in the PMC meeting scheduled for Tuesday, February 11,
2003.
e DRAFT Audited Financial Statements and other Financial Information
Operating and Revenue Funds
June 30, 2002 and 2001
e Bradley Lake Budget Documents
Please disburse to anyone else at your office that will be attending. If you have questions, please call
me at (907) 269-3000.
Thank you.