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Home My WebLink AboutBPMC Meeting September 16 1993@ a FILE COPY BRADLEY LAKE “ PROJECT MANAGEMENT COMMITTEE OVERVIEW COMMITTEE PURPOSE The Bradley Lake Hydroelectric Project Committee (BPMC) was established by the Bradley Lake Power Sales Agreement and began regular meetings in June 1988. The BPMC was formed to oversee the management, operation, maintenance and improvement of the Bradley Lake Hydroelectric Project, except for duties which are non-delegable by the Alaska Energy Authority (i.e., finance bond compliance and FERC requirements). Procedural rules for Committee operation have been established in the Committee Bylaws (EXHIBIT 7). COMMITTEE MEMBERSHIP AND REPRESENTATIVES (EXHIBIT 1) The Bradley Lake Project Management Committee consists of the Alaska Energy Authority and six purchasing utilities (utilities signatory to the project Power Sales Agreement): the City of Seward, Chugach Electric Association, Homer Electric Association, Matanuska Electric Association, Golden Valley Electric Association and Anchorage Municipal Light & Power. Each utility and the Energy Authority has one designated representative (the utility general manager) and one alternate representative. Each member is responsible for notification of the entire Committee when any change in representation is made. Legal counsel is retained by the Committee and attends the meetings in an advisory capacity. The Committee has also designated special purpose subcommittees, to which members are appointed on a yearly basis. Any five members of the Committee constitutes a quorum. MEETINGS Regular meetings are generally held monthly, however, except for the annual meeting, the Committee is only required to meet quarterly. The annual meeting is held in July, the first month of the fiscal year, for the purpose of electing officers and appointing subcommittees for a one year term. Special meetings may be called by the Chairman, or by three members of the Committee at any time. Special meetings are limited to the purpose given in the meeting notice. Typically, special meetings are held via teleconference. Written materials to be considered at any teleconference meeting should be available at all teleconference sites. BPMC Overview Page 2 of 3 NOTICE (EXHIBIT 2) The Secretary (permanently designated as the Alaska Energy Authority by the Committee Bylaws) is responsible for issuing public notice of meetings. Publication in a designated newspaper (Anchorage Daily News) is required a minimum of five days in advance of the meeting date. The notice should include the date, time and place of the meeting. Notice of special meetings should state the purpose of the meeting. If a meeting is teleconferenced, locations of the teleconference sites are to be included in the notice. Written notice should be received by the Committee members a minimum of 5 days in advance of the meeting date, although a two week notice is preferred (see EXHIBIT 5A, MEETING PACKET). AGENDA (EXHIBIT 3) Preparation of the agenda is the responsibility of the Secretary and is coordinated with the Chairman. Agenda items for future meetings are generally indicated during a meeting and are retained on the agenda until resolution. The main agenda headings are standing agenda items. The Committee may also choose to designate an agenda sub-heading as a standing item. Generally Committee members communicate agenda requests to the Chairman, however it is helpful to contact subcommittee chairman to obtain requests. Prior to distribution of the agenda (see EXHIBIT 5A, MEETING PACKET), a draft is faxed to the Chairman for approval. ATTENDANCE At the Chairman's direction, attendance is taken by the secretary under ROLL CALL, Agenda Item 2. The voting record (see EXHIBIT 4, VOTING) serves as the roll call register. MINUTES Written minutes are kept of all meetings and, as the designated Secretary, are the responsibility of the Alaska Energy Authority. The meetings are recorded on audio tape for the Secretary's use in preparing the minutes. Meetings are not required to be tape recorded. The format is generally a summary of Committee discussion, however, motions are recorded verbatim. Draft minutes are distributed by the Secretary to the Committee for review in advance of the next regular meeting. An "in house" review of the draft minutes is recommended prior to distribution to the Committee. Upon approval of the minutes by the Committee, the minutes are signed by the Chairman and the Secretary. BPMC Overview Page 3 of 3 Copies of the signed, approved minutes are distributed to the Committee (see EXHIBIT 5A, MEETING PACKET). VOTING (EXHIBIT 4) Votes are generally polled. Unless unanimous (with no members absent), each utilities’ vote is recorded in the meeting minutes. Four methods of voting are used by the Committee and are identified and defined on the voting record. The Chairman will direct the voting method to be applied. The voting record is retained as part of the Committee meeting file (see RECORD KEEPING). MEETING PACKET (EXHIBIT 5A & 5B) Approximately two weeks in advance of each meeting, the secretary distributes a meeting information packet. The packet generally contains the following items: 2 Meeting notice (memorandum) ° Agenda ° Draft meeting minutes of the previous meeting 2 Minutes approved at the previous meeting ° Written materials for consideration at the upcoming meeting ° Written materials for record keeping Exhibit 5B is the mail distribution list for the BPMC meeting packet. In addition to the Committee members and Committee legal counsel, the meeting packet is sent to other interested parties upon request. RECORD KEEPING (EXHIBIT 6) All motions, resolutions and directives by the Committee are assigned a sequential number prefaced by the last two digits of the calendar year in which they are made. Additionally, resolutions are assigned a separate series of numbers. Committee files, containing original, signed meeting minutes, original signed Committee resolutions, voting records, related materials distributed to the Committee, and tape recordings of the meetings, are maintained by the Alaska Energy Authority. EXHIBIT 1 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE List of Representatives Effective Date: August 9, 1993 Representative Alternate Utility Dave Calvert City of Seward 5th and Adams P.O. Box 167 Seward, Alaska 99664 Phone: 224-3331 Fax: 224-3248 David L. Highers Eugene N. Bjornstad Chugach Electric Association Chairman 5601 Minnesota Drive P.O. Box 196300 Anchorage, Alaska 99519-6300 Phone: 563-7494 Fax: 562-0027 Michael Kelly Bradley Evans Golden Valley Electric Association 758 Illinois P.O. Box 71249 Fairbanks, Alaska 99707 Phone: 452-1151 Fax: 451-0556 Kenneth Ritchey James Hall Matanuska Electric Association Treasurer 163 Industrial Way P.O. Box 2929 Palmer, Alaska 99645-2929 Phone: 745-9211 Fax: 745-9368 Norman L. Story David L. Fair Homer Electric Association Vice Chairman 3977 Lake Street Homer, Alaska 99603 Phone: 235-8167 Fax: 235-3313 Tom Stahr Hank Nikkels Anchorage Municipal Light & Power 1200 E. First Avenue Anchorage, Alaska 99501 Phone: 279-7671 Fax: 263-5204 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE List of Representatives Representative Alternate Dennis V. McCrohan Secretary Brent N. Petrie Ron Saxton Legal Counsel Effective Date: August 9, 1993 Page 2 Utility Alaska Industrial Development and Export Authority 480 W. Tudor Road Anchorage, Alaska 99503-6690 Phone: 561-8050 Fax: 561-8998 Alaska Energy Authority 701 E. Tudor Road P.O. Box 190869 Anchorage, Alaska 99519-0869 Phone: 561-7877 Fax: 561-8584 Ater Wynne Hewitt Dodson & Skerritt 225 S.W. Columbia, Suite 1800 Portland, Oregon 97201-6618 Phone: (503) 226-1191 Fax: (503) 226-0079 BRADLEY .KE PROJECT MANAGEMENT( WMITTEE Operations & Dispatch Subcommittee Distribution List Effective Date: October 9, 1992 Revised: April 12, 1993 Representative Utility David Burlingame Chugach Electric Association 5601 Minnesota Drive P.O. Box 196300 Anchorage, Alaska 99519-6300 Phone: 762-4789 Fax: 762-4540 Bradley Evans Golden Valley Electric Association 758 Illinois P.O. Box 71249 Fairbanks, Alaska 99707 Phone: 452-1151 Fax: 451-0556 Sam Matthews Homer Electric Association 3977 Lake Street Homer, Alaska 99603 Phone: 235-8167 Fax: 235-3313 Doug Hall Anchorage Municipal Light & Power 1200 E. First Avenue Anchorage, Alaska 99501 Phone: 279-7671 Fax: 276-2961 Stanley Sieczkowski Alaska Energy Authority Chairman 701 E. Tudor Road P.O. Box 190869 Anchorage, Alaska 99519-0869 Phone: 561-7877 Fax: 561-8584 BRADLEY .KE PROJECT MANAGEMENT‘ MMITTEE Finance/Budget Subcommittee Distribution List Effective Date: October 9, 1992 Revised: April 12, 1993 Representative Utility Tom Lovas Chugach Electric Association 5601 Minnesota Drive P.O. Box 196300 Anchorage, Alaska 99519-6300 Phone: 563-7494 Fax: 562-0027 Kenneth Ritchey Matanuska Electric Association Chairman 163 Industrial Way P.O. Box 2929 Palmer, Alaska 99645-2929 Phone: 745-9211 Fax: 745-9368 Mary Ann Pease Anchorage Municipal Light & Power 1200 E. First Avenue Anchorage, Alaska 99501 Phone: 279-7671 Fax: 263-5204 Brent N. Petrie Alaska Energy Authority 701 E. Tudor Road P.O. Box 190869 Anchorage, Alaska 99519-0869 Phone: 561-7877 Fax: 561-8584 EXHIBIT 2 NOTICE TO PUBLISHER [ADVERTISING ORDERNO.—COC~CS~™S INV .E MUST BE IN TRIPLICATE SHOWING ADVEF NG ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISE- A0- 08-9242 MENT MUST BE SUBMITTED WITH INVOICE. STATE OF ALASKA ADVERTISING ORDER SEE BOTTOM FOR INVOICE ADDRESS a eG : ra AGENCY CONTACT DATE OF AO. aska Energy Authority I 9/7/93 P.0. Box 190869 alba hi R Anchorage, AK 99519-0869 PHONE | M (907) 261-7240 | DATES ADVERTISEMENT REQUIRED: | 9/14/93 - ONCE | T oO Anchorage Daily News | Pp P.O. Box 149001 Anchorage, AK 99514-9001 U FAX: 27928170 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY B : ON THE DATES SHOWN. L SPECIAL INSTRUCTIONS: s Internal AEA Accounting: charge to 81072020 H E R Type of Advertisement: O Legal O Display O Classified BxOther (Specify): PUBLIC MEETINGS SECTION ALASKA ENERGY AUTHORITY Notice is heregy given that the Bradley Lake Project Management Committee will hold a regular meeting to conduct the affairs of the Committee at Chugach Electric Association in Anchorage, Alaska. The meeting will commence at 1:00 p.m., on September 21, 1993. For additional information, contact David L. Highers, Chairman, Chugach Electric Association, Inc., P.0. Box 196300, Anchorage, AK 99519-6300. Alaska Energy Authority, Secretary Project Management Committee SENDING THIS FAX ON 9/7/93. PLEASE DO NOT DUPLICATE THIS WHEN IT ARRIVES VIA REGULAR MAIL. PAGE 1 OF| TOTAL OF SEND INVOICE IN Paces! ALL PAGES $ TRIPLICATE TO REQUISITIONED BY: DIVISION APPROVAL Irene Tomory, Administrative Coordinator ALASKA ENERGY AUTHORITY STATE OF ALASKA NOTICE Notice is hereby given that the Bradley Lake Project Management Committee will hold a teleconference meeting to conduct the affairs of the Committee at 10:00 a.m. on April 16, 1993. The teleconference will be held at the following locations: Chugach Electric Association, Anchorage, Anchorage Municipal Light & Power, Anchorage, Matanuska Electric Association, Palmer; Golden Valley Electric Association, Fairbanks; Homer Electric Association, Homer; Seward Electric System, Seward; and Alaska Energy Authority, Anchorage. For additional information, contact David L. Highers, Chairman, Chugach Electric Association, P.O. Box 196300, Anchorage, Alaska 99519. Alaska Energy Authority, Secretary Project Management Committee 93Q2A4638(1) NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISIN G It’ «CE MUST BE IN ene eee — ORDER NO., CERTIFIED A N (PAI ORDER 2 OF THIS FORM) WITH ATTACHED COPY OF ADventise- | AQ= 9194 SEE BOTTOM FOR INVOICE ADDRESS MENT MUST BE SUBMITTED WITH INVOICE. AGENCY CONTACT DATE OF AO. F Alaska Energy Authority Irene Tomo 4/9/93 g | dactorege, ak. 995 o Anchorage, AK 99519-0869 (907)_ 261-7240 M Fax: 561-8585 = DATES ADVERTISEMENT REQUIRED: z ONCE: April 10, 1993 . Anchorage Daily News U P.O. Box 149001 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRE 8 Anchorage, AK 99514-9001 ON THE DATES SHOWN. F Fax: 279-8170 ‘SPECIAL INSTRUCTIONS: 8 Internal AEA Accounting: Charge To E 81072020 LR [type of Advertisement: O Legal O Display O Classified {Other (Specify): PUBLIC NOTICES See attached ad, sending via fax on 4/9/93 . PLEASE DO NOT DUPLICATE THIS ORIGINAL WHEN IT ARRIVES VIA REGULAR MAIL. Please use any applicable State of Alaska Contract Award Pricing. Use 250" advertising agreement. PLACE AD IN PUBLIC NOTICES SECTION OF PAPER, THANK YOU. SEND INVOICE IN PAGE 1 0F | TOTAL OF REF [TYPE] NUMBER _—+|_——CAMOMMEE—«|=SSCOATE Cd COMMENTS 00 EU a tec 2s | A ae | | el | ness Esa | Pte Fae — aoa Ter es Tren eae inte 00 a ome al eT 2 3 4 | | pe BY: DIVISION el Irene Tomory, Admin. Coordinator 02-901 (Rev. 6-85) EXHIBIT 3 10. 11. 12. 13; 14. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA September 21, 1993 Chugach Electric Association, Inc. Training Room 1:00 p.m. CALL TO ORDER 1:00 p.m. ROLL CALL PUBLIC COMMENT AGENDA COMMENTS APPROVAL OF MEETING MINUTES - August 17, 1993 TECHNICAL COORDINATING SUBCOMMITTEE REPORT BUDGET SUBCOMMITTEE REPORT A. Bradley Lake Construction Cost Audit Presentation B. Bradley Lake O&M Cost Audit Update AGREEMENTS SUBCOMMITTEE REPORT OPERATION AND DISPATCH SUBCOMMITTEE REPORT REVIEW OF PROJECT STATUS OLD BUSINESS A. Spinning Reserves Update B. Bradley Scheduling vs. Spin Requirement Update Cc. BPMC Control Over O&M Decisions and Agreements Master Agreement D. O&M Contract Update E. BPMC Bylaws - Subcommittee Authority/Voting Procedures NEW BUSINESS A. Approval of Legal Expenses and Other Payments COMMUNICATIONS A. Schedule Next Meeting ADJOURNMENT Highers Burlingame Ritchey Brian Walshe Metzler & Associates Sieczkowski Wolf Eberle Lovas Saxton Saxton Story Saxton Ritchey Agenda Item No. CITY OF SEWARD MATANUSKA ELEC ASSOC CHUGACH ELEC ASSOC HOMER ELEC ASSOC GOLDEN VAL ELEC ASSOC MUNI LIGHT & POWER ALASKA ENERGY AUTHORITY A=4+ OVER 51% DATE: BRADLEY PMC VOTING YES NO ABS YES NO ol’ Ee eC EE aa oC OEE Ea aC Ea Gy aE EE Se aE EE B = AEA CONCUR With A ESE C = UNANIMOUS D= MAJORITY VOTING METHOD A: Requiring four yeas with 51% of utilities, with no AEA vote: 1) Procedures for scheduling, production and dispatch of project power. 2) Establishment of procedures for use of each purchaser's water allocation (AEA assent required for license requirements). 3) Selection among alternative methods that do not involve AEA for funding required project work. VOTING METHOD B: Requiring 4 yeas with 51% of utilities and AEA concurrence: 1) Arranging operation and maintenance of project. 2) Adoption of budget of annual project costs. VOTE(9303/BC5272) 3) Establishment of FY estimated annual payment obligation and schedule of each purchaser. 4) Determination of annual project costs after each FY. 5) Evaluation of necessity for and scheduling of required project work. 6) Determination of appropriate amount of insurance. 7) Adoption of additional minimum funding amounts for renewal and contingency reserve fund above that required by bond resolution. 8) Selection among alternate methods that involve AEA for funding required project work. 9) Adoption or amendment of procedural committee rules (except dispute resolution). 10) Adoption of project maintenance schedules. 11) Determination of rules, procedures and accounts necessary to manage project when no bonds outstanding. 12) Evaluation and approval of optional project work and compensation for such work. 13) Application of insurance claims proceeds not governed by bond resolution. 14) Approval of procedures and any individual utility agreements relating to electric power reserves for project. 15) Approval of consultants. VOTING METHOD C: Unanimous vote by all (including AEA) VOTING METHOD D: Majority vote (including AEA) Election of Officers EXHIBIT 5 DATE: TO: FROM: SUBJECT: Alaska Energy Authority MEMORANDUM AEA/UTIL/0020 August 5, 1993 Bradley Lake Project Management Committee David L. Highers, Chugach Electric Association Norm Story, Homer Electric Association Ken Ritchey, Matanuska Electric Association Dave Calvert, City of Seward Tom Stahr, Anchorage Municipal Light & Power Mike Kelly, Golden Valley Electric Association Ron Saxton, Ater Wynne Hewitt Dodson & Skerritt Dennis V. McCroha: Secretary OMe Gshon Project Management Committee Notice of Meeting - August 17, 1993 The next meeting of the Bradley Lake Project Management Committee will be held Tuesday, August 17, 1993. The meeting will begin at 10:00 a.m. in the Training Room at Chugach Electric Association, Anchorage. The following items are enclosed for your information, review, and files: ° Agenda - August 17, 1993 ° Updated List of BPMC Representatives ° Resolution 93-11 ° Draft Meeting Minutes - July 22, 1993 ° Approved Meeting Minutes - June 17, 1993 DB:DVM:db ce: Vince Mottola, Fairbanks Municipal Utilities System Ronald A. Garzini, Alaska Energy Authority Stanley E. Sieczkowski, Alaska Energy Authority Larry Wolf, Alaska Energy Authority David R. Eberle, Alaska Energy Authority Brent N. Petrie, Alaska Energy Authority 10. 11. 12. 13. 14. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA August 17, 1993 Chugach Electric Association, Inc. Training Room 10:00 a.m. CALL TO ORDER 10:00 a.m. ROLL CALL PUBLIC COMMENT AGENDA COMMENTS APPROVAL OF MEETING MINUTES = July 22, 1993 TECHNICAL COORDINATING SUBCOMMITTEE REPORT BUDGET SUBCOMMITTEE REPORT A. Bradley Lake Construction Cost Audit Update B. Bradley Lake O&M Cost Audit Update AGREEMENTS SUBCOMMITTEE REPORT OPERATION AND DISPATCH SUBCOMMITTEE REPORT REVIEW OF PROJECT STATUS OLD BUSINESS Spinning Reserves/Under Frequency Load Shedding Update Bradley Scheduling vs. Spin Requirement Update BPMC Control Over O&M Decisions and Agreements Master Agreement O&M Contract - Update BPMC Bylaws - Subcommittee Authority/Voting Procedures mo AD> NEW BUSINESS A. Approval of Legal Expenses and Other Payments COMMUNICATIONS A. Schedule Next Meeting ADJOURNMENT Highers Burlingame Ritchey Sieczkowski Eberle Eberle Lovas Saxton Saxton Story Saxton Ritchey BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE List of Representatives Effective Date: July 22, 1993 Representative Alternate Utility Dave Calvert City of Seward 5th and Adams P.O. Box 167 Seward, Alaska 99664 Phone: 224-3331 Fax: 224-3248 David L. Highers Eugene N. Bjornstad Chugach Electric Association Chairman 5601 Minnesota Drive P.O. Box 196300 Anchorage, Alaska 99519-6300 Phone: 563-7494 Fax: 562-0027 Michael Kelly Bradley Evans Golden Valley Electric Association 758 Illinois P.O. Box 71249 Fairbanks, Alaska 99707 Phone: 452-1151 Fax: 451-0556 Kenneth Ritchey James Hall Matanuska Electric Association Treasurer 163 Industrial Way P.O. Box 2929 Palmer, Alaska 99645-2929 Phone: 745-9211 Fax: 745-9368 Norman L. Story Sam Matthews Homer Electric Association Vice Chairman 3977 Lake Street Homer, Alaska 99603 Phone: 235-8167 Fax: 235-3313 Tom Stahr Hank Nikkels Anchorage Municipal Light & Power 1200 E. First Avenue Anchorage, Alaska 99501 Phone: 279-7671 Fax: 263-5204 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE List of Representatives Representative Alternate Dennis V. McCrohan Secretary Brent N. Petrie Ron Saxton Legal Counsel Effective Date: July 22, 1993 Page 2 Utility Alaska Industrial Development and Export Authority 480 W. Tudor Road Anchorage, Alaska 99503-6690 Phone: 561-8050 Fax: 561-8998 Alaska Energy Authority 701 E. Tudor Road P.O. Box 190869 Anchorage, Alaska 99519-0869 Phone: 561-7877 Fax: 561-8584 Ater Wynne Hewitt Dodson & Skerritt 225 S.W. Columbia, Suite 1800 Portland, Oregon 97201-6618 Phone: (503) 226-1191 Fax: (503) 226-0079 BRADLEY tAKE PROJECT MANAGEMENT COMMITTEE RESOLUTION 93 - 11 A RESOLUTION of the Bradley Lake Project Management Committee (BPMC) regarding the authority of the Budget Subcommittee to adjust budgets for annual Project costs as defined under Section 8 (a) (vii) of the Bradley Lake Power Sales Agreement (PSA). WHEREAS the BPMC is authorized by the Bradley Lake Power Sales Agreement to adopt budgets for annual operating and maintenance (O&M) costs as defined under Section 8 (a) (vii) of the PSA for the operation of the Bradley Lake Hydroelectric Project and to make amendments to the budget from time to time; and WHEREAS the Budget Subcommittee of the BPMC is charged with researching and preparing the O&M budget and amendments thereto; and WHEREAS the Budget Subcommittee may meet on shorter notice and with more frequency than the BPMC; and ‘ WHEREAS the BPMC has determined that periodic minor O&M budget adjustments may be necessary for smooth and efficient operation of the project and BPMC; and NOW, THEREFORE BE IT RESOLVED that the BPMC authorizes the Budget Subcommittee to make budget adjustments within line items of the adopted budget; and BE IT FURTHER RESOLVED that the BPMC further authorizes the Budget Subcommittee to increase the adopted total O&M budget up to ten percent (10%) of the initially adopted total amount when necessary to meet unforeseen operating expenditures; and BE IT FURTHER RESOLVED that nothing in the authorization changes duties and responsibilities of the parties established by the Bradley Lake Power Sales Agreement; and BE IT FURTHER RESOLVED that the Budget Subcommittee shall report such changes to the BPMC at the BPMC's next scheduled meeting. ADOPTED by the Bradley Lake Project Management Committee at a regular meeting of the Committee held July 22, 1993. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE BY: ATTEST: Bush As Brent N. Petrie, Secretary David L. Highers\@hairman DATE: a a, 19473 dburger\word\minutes\pmc\res93-1 1 Q*e SA oq <“\)BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE 4 DRAFT MEETING MINUTES July 22, 1993 a CALL TO ORDER Chairman Highers called the Bradley Lake Hydroelectric Project Management Committee to order at 10:15 a.m. in the Training Room at Chugach Electric Association in Anchorage, Alaska to conduct the business of the Committee per the agenda and the public notice. 2. ROLL CALL Alaska Energy Authority Dennis McCrohan, Designated Representative Chugach Electric Association David L. Highers, Designated Representative and Chairman Golden Valley Electric Association Mike Kelly, Designated Representative City of Seward Dave Calvert, Designated Representative Homer Electric Association Norm Story, Designated Representative Matanuska Electric Association Ken Ritchey, Designated Representative Municipal Light & Power Tom Stahr, Designated Representative Others Present: Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerritt Bob Hufman, Alaska Electric Generation & Transmission Cooperative Dave Hutchens, Alaska Rural Electric Cooperative Association David Burlingame, Chugach Electric Association John Cooley, Chugach Electric Association dburger\word\minutes\pmc\07-93 BPMC Meeting Minutes July 22, 1993 Page 2 of 10 Gene Bjornstad, Chugach Electric Association Bradigy Evans, Golden Valley Electric Association = Jim Hau, Matanuska Electric Association ,)\\sMoe Aslam, Municipal Light & Power )* Tim McConnell, Municipal Light & Power Bob Price, Municipal Light & Power Dave Fair, Homer Electric Association Myles Yerkes, Homer Electric Association Brent Petrie, Alaska Energy Authority David R. Eberle, Alaska Energy Authority Stanley E. Sieczkowski, Alaska Energy Authority Denise Burger, Alaska Energy Authority Chairman Highers welcomed Dennis McCrohan, Deputy Director of Energy, Alaska Industrial Development and Export Authority (AIDEA). Mr. McCrohan will represent Alaska Energy Authority on the Bradley Lake and Four Dam Pool Project Management Committees. 3. PUBLIC COMMENT There being no public comment, the meeting continued to the next agenda item. 4. AGENDA COMMENTS The following items were added to the agenda: 12.C. Acceptance of HEA's Application for the Operation and Maintenance of Bradley Lake 12.D. Approval of SVC Testing Power Costs 12.E. Interim SVC Maintenance Agreement 12.F. Legal Opinion on O&D Subcommittee Authority 5. APPROVAL OF MEETING MINUTES Minutes of the June 17, 1993 meetings were approved as submitted. 6. TECHNICAL COORDINATING SUBCOMMITTEE REPORT Mr. Burlingame stated the Technical Coordinating Subcommittee had not met. It is anticipated that PTI will complete the final Bradley Lake operating study by the end of July 1993. Mr. Burlingame expects the TCS to hold its final meeting in August to review and accept the study recommendations. dburger\word\minutes\pmc\07-93 BPMC Meeting Minutes July 22, 1993 Page 3 of 10 7. BUDGET SUBCOMMITTEE REPORT oe Mr. Ritehey, reported the Budget Subcommittee held a teleconference on July 1, (O38 - Fhe Subcommittee is reviewing the costs for maintenance of Homer Biéctric's Bradley Junction and Soldotna line with HEA. Mr. Ritchey reported the FY94 wheeling rate, under the Transmission Services Agreement was expected to be slightly lower than the FY93 rate of $.023. The Budget Subcommittee is awaiting the final wheeling information from Chugach Electric Association. The Subcommittee approved modifications to the FY94 budget to accommodate the cost of the FY94 Stream Gage Program ($110,000). The cost of the FY94 Stream Gage Program was included in the budget narrative, but was overlooked in the line items. Mr. Ritchey noted several budget line items were reduced by a total of $110,000, however the adopted FY94 budget total remained unchanged. A. Construction Cost Audit Update The Subcommittee has received the final draft of the Construction Cost Audit. Mr. Ritchey noted that efforts were being made to arrange a presentation of the audit to the BPMC by Mr. Brian Walshe of Metzler and Associates. B. O&M Audit Update Parisena Stromberg & Associates has completed the 1992 O&M cost audit. Mr. Ritchey stated clarification of a few items was still needed. 8. AGREEMENTS SUBCOMMITTEE REPORT Mr. Sieczkowski reported the Agreement Subcommittee had not met. Mr. Sieczkowski stated that he and Mr. Saxton had met, however, and discussed the master operating agreement. Further comments were deferred to Mr. Saxton under agenda item 11. C. 9. O&D SUBCOMMITTEE REPORT Mr. Eberle stated the O&D Subcommittee met on July 8, 1993. Merits of changing the water year were discussed by the Subcommittee, but were judged insufficient to justify a change at the present time. dburger\word\minutes\pmc\07-93 BPMC Meeting Minutes July 22, 1993 Page 4 of 10 Mr. Eberle reported the Subcommittee discussed concerns over the lack of a maintenance Agreement for the Daves Creek and Soldotna substations. It was believed:that. completion of the maintenance agreement had been interrupted by “consideration of the master operating agreement. Mr. Eberle stated that ‘Chugach Electric Association had been performing minor maintenance of the facilities. To ensure that necessary maintenance continued, the Subcommittee recommended the BPMC approve an interim letter agreement (between AEA and CEA). Additionally, the Subcommittee proposed to review the substation maintenance expenses, prior to payment, until the full agreement was in place. The Subcommittee also approved forwarding the following SVC testing costs to the BPMC for payment: Chugach Electric Association $352,798.77 Municipal Light & Power 16,323.33 Mr. Eberle noted that CEA submitted only the cost of additional power generation and no labor, and that AML&P included $1,603 labor costs in its billing. HEA initially submitted costs which included labor, but subsequently withdrew them. The City of Seward had not yet requested reimbursement for SVC testing costs, however, apparently was planning to submit a request. Mr. Eberle stated that the O&D Subcommittee approved a motion to formally advise the BPMC of the differences in the submitted testing costs. Mr. Eberle informed the Committee that the O&D Subcommittee was discussing both station service and equipment SVC losses. The BPMC was advised that provisions for these losses would need to be addressed in the O&M budget. The Subcommittee will be revising and updating the Allocation & Scheduling Procedures. Current interim procedures will be revised to final operating procedures and then brought to the BPMC for approval. Mr. Eberle stated the Project's yearly maintenance is scheduled the first two weeks of October, pending approval by the utilities. During the maintenance outage, ABB will be installing the replacement capacitors and the new Soldotna breaker. 10. REVIEW OF PROJECT STATUS Mr. Eberle recommended that $100,000 of Project construction funds be reserved for future clean-up of the remaining underwater debris in the fish water bypass intake channel. Explaining there was no urgency to complete the clean- up, Mr. Eberle stated that it could be done for approximately $50,000 at a reservoir level low enough to permit use of heavy equipment. Utilizing divers dburger\word\minutes\pmc\07-93 BPMC Meeting Minutes July 22, 1993 Page 5 of 10 to do the work now would cost an estimated $160,000 - $180,000 and was not necessary. dpizesponse to inquiry by Mr. Saxton, Mr. Eberle explained the funds would be“held by the trustee bank. It was noted that, to date, < approximtately $200,000 had been spent on the previous diving operation to clear the fish water bypass intake area. 11. OLD BUSINESS A. B. Spinning Reserve / Under Frequency Load Shedding Update Bradley Scheduling vs. Spin Requirement Update Mr. Cooley reported on behalf of Mr. Lovas that Mr. Lovas and Mr. Saxton had been working on categorizing spinning reserve policy and technical issues. It was expected that the various issues would be defined by the next Committee meeting. The Alaska Systems Coordinating Council (ASCC) is also waiting on the review being done by Mr. Lovas and Mr. Saxton. Mr. Burlingame added that approval of the new load shedding schedule was expected at a meeting later in the day. BPMC Control Over O&M Decisions and Agreements - Master Operating Agreement Mr. Saxton reported that he, Stan Sieczkowski, and Jim Klasen, assistant Attorney General, agreed that the concept of the master operating agreement was workable. A meeting was scheduled later in the day to discuss specific details of the agreement. Mr. Saxton expected some delay on the agreement progress until AIDEA became more familiar with the operation and maintenance of the Bradley Lake Project. Budget Subcommittee Authority - Resolution 93-11 Mr. Petrie explained that the purpose of the resolution was to give the Budget Subcommittee authority to adjust line items within the budget and authority to adjust the budget up to ten percent of the total. Mr. Petrie revised the phrase approved budget, where it appeared, to read adopted budget. It was noted that the phrase adopted budget did not necessarily mean the budget was approved by the Committee. Mr. Petrie moved to a Resolution 93-11 i ni Mr. Kelly, th motion w Vi i vi i -181). Prior to the vote, Mr. Petrie explained that AEA was currently dburger\word\minutes\pmc\07-93 BPMC Meeting Minutes July 22, 1993 Page 6 of 10 a represented on the Budget Subcommittee and the assumption was made that thie Energy Authority will continue to be represented on the » e\ \ Subcommittee. Mr. Saxton addressed the issue of subcommittee authority, stating that, though somewhat confusing, the bylaws clearly intended that specific authority could be delegated to subcommittees. Mr. Saxton recommended that the Committee clarify the bylaws, replacing the section which states "The BPMC may not delegate its decision making duties to any special purpose committees" with "Special purpose committees shall exercise only such powers as are expressly delegated by the Committee." Mr. Saxton added the proposed revision would help clear up pending questions on O&D Subcommittee authority. Mr. Ritchey mov mimi n recommended by Mr. Saxton. Mr. Kelly seconded the motion, commenting that, in order to avoid potential confusion, authority should 1 h mimi lution. Mr. mov the motion be tabled to allow study of the bylaws and any potential impacts created by the proposed change. Mr. Kelly seconded the motion t le Mr. Ritchey' ion. Hearing no objection i Highers led the motion until the next schedul mmi meeting (Action 93-182). With the approval of Chairman Highers, Mr. Eberle introduced discussion of New Business, Item 12. F., Legal Opinion on O&D Subcommittee Authority. Mr. Eberle reported that the O&D Subcommittee approved a motion stating that the following questions be brought to the Bradley Lake Project Management Committee for clarification: 1. What, if any, items has the BPMC delegated to the O&D Subcommittee to take independent action on. 2. What voting procedures should the Subcommittee use. 3. | Under the BPMC bylaws, does the BPMC have the authority to delegate powers to subcommittees. It was suggested by Mr. Eberle that these issues be considered during Mr. Saxton's review of the BPMC bylaws. Mr. Saxton will distribute a copy of the current BPMC bylaws to the Committee members along with a list of actions taken by the Committee. dburger\word\minutes\pmc\07-93 BPMC Meeting Minutes July 22, 1993 Page 7 of 10 Mr. Kelly recommended that any past delegations to the subcommittees, ax are not out of date, be drafted into resolutions for consideration at the next’scheduled BPMC meeting. Mr. Yerkes raised the question of oO NS < sibcommittee voting procedures. Mr. Saxton responded that the issue was not specifically addressed in the Power Sales Agreement (PSA) or Committee bylaws, adding that decisions in the Budget Subcommittee were generally made by consensus of the majority. Mr. Saxton suggested that the same weighted voting procedures developed for the BPMC be observed by the subcommittees. Mr. Kelly recommended that past actions taken by the subcommittees be affirmed and that it be made clear that the proposed change does not alter past subcommittee actions. Additionally, Mr. Kelly proposed subcommittee voting procedures by majority consensus and that voting be limited to the designated, authorized subcommittee representative. The issue will be discussed further at the next Committee meeting. 12. NEW BUSINESS A. Nomination and Election of Officers Mr. Kelly, Mr. Calvert and Mr. Story were previously asked to serve as the nominating committee by Chairman Highers. Mr. Kelly reported that the nominating committee had met and recommends that the current officers continue to serve the Committee, noting that Mr. McCrohan, as the designated representative for the Energy Authority, would serve as Secretary. Mr. Kelly invited nominations from the floor, however, no Acceptance of HEA's Application for the Operation and Maintenance of Bradley Lake dburger\word\minutes\pmc\07-93 BPMC Meeting Minutes July 22, 1993 Page 8 of 10 1 the Bradley Lake Hydroelectric Project for submission to Alaska Energy Authgrity to be used as a basis to negotiate with the Energy Authority 7 and\th Project Management Committee to develop a final budget and \\ \ - contract. The motion, seconded by Mr. Ritchey was approved by ~~ unanimous roll call vote (Action 93-185). Mr. Story requested that the Chairman appoint a team to assist with contract and budget negotiations. Mr. Kelly recommended that each utility general manager, or appointed designee, be represented on the team. Mr. Story already anticipated involving the utilities in the interim development process of the operation and maintenance proposal prior to negotiation with the Energy Authority and presentation to the BPMC. Mr. Story expected planned work sessions among the utilities to take place in Anchorage. Mr. Ritchey recommended that the budget issues be separated from the other issues and dealt with by the Budget Subcommittee, adding that non-subcommittee members could participate in the discussions as well. Mr. McCrohan stated that the Energy Authority preferred to negotiate directly with Homer Electric Association before bringing the contract to the Committee, or a designated group of the Committee, for approval. Mr. Saxton pointed out that the negotiations would include three, separate parties: Homer Electric Association, Alaska Energy Authority and the Bradley Lake Project Management Committee. It was the consensus of the BPMC that the utilities should be involved in the informal development phase of the contract in order to allow opportunity for input and discussion of utility concerns. The initial development process will not include AEA. Mr. Stahr noted HEA's efforts to include the utilities in the process to date and expected that HEA will continue to include the utilities. Mr. Saxton clarified that HEA would be negotiating with AEA as its own representative and not as a representative of the BPMC. Mr. Story confirmed that it was HEA's intent to, first, work with the utilities during the development of the contract; second, negotiate the contract with AEA; and third, present the contract to the BPMC for approval. Mr. Story reiterated that all utility concerns would be resolved before the contract was brought to AEA for negotiation. No other applications were submitted to the Committee. dburger\word\minutes\pmc\07-93 BPMC Meeting Minutes July 22, 1993 Page 9 of 10 E. Although the Budget Subcommittee will be reviewing HEA's proposed budget, Mr. Saxton advised the Committee that the budget would need u tebe e\approved separately and could not be agreed to in the contract. if late of SVC Testing Power Costs Mr. Eberle reviewed the utility test power costs reported under agenda Item 9, O&D Subcommittee Report. Mr. Eberle informed the Committee that, initially, funds had not been budgeted for SVC test power costs. The Subcommittee agreed that the SVC testing costs should be capitalized, however did not specifically define which costs would be included. Mr. Eberle explained that AEA assumed the utility labor costs would be absorbed by the utilities, as had been the previous, established practice. Mr. Eberle recommended that the direct expenses and any personnel overtime costs directly attributable to the testing be capitalized. Mr. Stahr stated that was the procedure that AML&P used for billing its testing costs and proposed that all utility billings be reviewed for demonstration of actual cost. Mr. Eberle pointed out that CEA calculated the cost of test power and that it may be cumbersome to reconstruct actual costs. Mr. Eberle acknowledged that future utility cost reimbursements should be documented actual costs, but added that this had not been determined in advance of the SVC testing. Mr. Burlingame stated that CEA had documentation of its actual power generation costs for SVC a - eae e to share that cee, vote (Action 93-186). It was clarified that any proposed labor costs submitted for reimbursement should be incremental overtime costs, and that billings expected from Homer Electric Association and the City of Seward were included in the motion. Interim SVC Maintenance Agreement Mr. Eberle reiterated the importance of maintaining the SVC system and recommended that, until the formal SVC maintenance agreements were executed, of a letter agreement with Chugach Electric Association be used to ensure continued maintenance. Additionally, Mr. Eberle proposed, during the interim, under the letter agreement, the maintenance costs be reviewed by the O&D Subcommittee for payment. Mr. Kell mimi ve Mr rle' mmen in nd motion w: NV. unanimous roll call vote (Action 93-187). Mr. Sieczkowski commented that the SVC and Transmission Line Maintenance Contracts were dburger\word\minutes\pmc\07-93 BPMC Meeting Minutes July 22, 1993 Page 10 of 10 presently ready for signature, except for inclusion of the reference to the mastefoperating agreement, and that a budget amendment would be _broughtto the Budget Subcommittee to cover the maintenance costs. J ~ Other Items Mr. Eberle recalled the Committee had previously requested investigation of the cost of SVC system studies covering the effects of the new Kenai transmission line. ASEA Brown Boveri (ABB) estimated a cost of $88,000 to perform the studies. Mr. Eberle recommended the studies be done through AEA's existing contract. Mr. Kelly moved that nt n X 1 hori r ABB rform studies of the effect of the Southern Intertie on the SVC system. The motion Mr, w Vi unani Lt vote (Action 93-188). The cost of the studies will be capitalized as a Bradley Lake Project cost. 13. COMMUNICATIONS A. Schedule Next Meeting Tuesday, August 17, 1993 10.00 a.m. Chugach Electric Association Training Room 14. ADJOURNMENT The meeting adjourned at 11:50 a.m. Attest: David L. Highers, Chairman Dennis McCrohan, Secretary dburger\word\minutes\pmc\07-93 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE APPROVED MEETING MINUTES June 17, 1993 1. CALL TO ORDER Chairman Highers called the Bradley Lake Hydroelectric Project Management Committee to order at 10:10 a.m. in the Training Room at Chugach Electric Association in Anchorage, Alaska to conduct the business of the Committee per the agenda and the public notice. 2. ROLL CALL Alaska Energy Authority Brent N. Petrie, Designated Representative Chugach Electric Association David L. Highers, Designated Representative and Chairman Golden Valley Electric Association Mike Kelly, Designated Representative City of Seward Dave Calvert, Designated Representative Homer Electric Association Norm Story, Designated Representative Matanuska Electric Association Ken Ritchey, Designated Representative Municipal Light & Power Hank Nikkels, Alternate Representative Others Present: Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerritt Bob Hufman, Alaska Electric Generation & Transmission Cooperative David Burlingame, Chugach Electric Association dburger\word\minutes\pmc\06-93 BPMC Meeting Minutes June 17, 1993 Page 2 of 9 John Cooley, Chugach Electric Association Jim Borden, Chugach Electric Association Tom Lovas, Chugach Electric Association Dan Bloomer, Chugach Electric Association Jim Hall, Matanuska Electric Association Mary Ann Pease, Municipal Light & Power Tim McConnell, Municipal Light & Power Bob Price, Municipal Light & Power Dave Fair, Homer Electric Association Ron Garzini, Alaska Energy Authority David R. Eberle, Alaska Energy Authority Eric Marchegiani, Alaska Energy Authority Stanley E. Sieczkowski, Alaska Energy Authority Denise Burger, Alaska Energy Authority PUBLIC COMMENT There being no public comment, the meeting continued to the next agenda item. AGENDA COMMENTS The following items were added to the agenda: 12.B. Approval of FY94 Payment Obligation 12.C. Approval of Other Payments APPROVAL OF MINUTES - May 13, 1993 The minutes of the May 13, 1993 Bradley Project Management Committee meeting were approved as submitted (Action 93-176). TECHNICAL COORDINATING SUBCOMMITTEE REPORT Mr. Burlingame reported that the TCS had not met. The TCS expects to meet in July to review the results of the SVC system tests and to define the long term operating guidelines of the Project. BUDGET SUBCOMMITTEE REPORT A. Bradley Lake Construction Cost Audit Update dburger\word\minutes\pmc\06-93 BPMC Meeting Minutes June 17, 1993 Page 3 of 9 Mr. Ritchey expected the final report to be distributed in one week. The Budget Subcommittee will meet in two weeks to discuss the report. Plans are being made for a representative of Metzler & Associates to present the report to the BPMC. Bradley Lake O&M Cost Audit Update The FY92 O&M cost audit is being reviewed and the Subcommittee is awaiting clarification of some questions. Other Budget Subcommittee Issues: Mr. Ritchey noted that an error had been discovered in the approved FY94 O&M budget. Cost for the USGS stream gage program was included in the narrative, however, did not appear as a line item. Other budget line items will be adjusted to provide for the cost of the program ($110,000). The changes will not effect the budget total. , Mr. Ritchey informed the Committee that the Budget Subcommittee was preparing a resolution formalizing the authority of the Subcommittee to make certain changes to the O&M budget. The resolution will be ready for consideration at the next BPMC meeting. Other items being discussed by the Subcommittee are the HEA Fritz Creek line costs and the CEA wheeling issue. Chairman Highers asked what impact the recent legislation affecting AEA would have on the Bradley O&M budget. Mr. Petrie recommended that the Committee wait until December or January, when new operation arrangements were expected to be in place, before altering the budget or utility payment schedule. Mr. Petrie added AEA was incurring unexpected costs related to preparation for the transfer of operation responsibilities and the on-site labor negotiations. Referring to a memorandum issued by AEA, Mr. Petrie stated AEA was requesting guidance from the Committee on the selection of an operation and maintenance contractor for Bradley Lake (Attachment 1). Mr. Petrie informed the Committee that a meeting of Four-Dam Pool, Bradley Lake and other utilities was scheduled for July 7, 1993 at AEA to discuss the transfer of tasks handle by AEA to the utilities. Mr. Kelly expressed concern over the continuing availability of Energy Authority staff to oversee the transition and recommended that the BPMC assert its authority as the contracting power. Acknowledging there had been several previous discussions on the BPMC authority to contract, Mr. Petrie stated AEA was dburger\word\minutes\pmc\06-93 BPMC Meeting Minutes June 17, 1993 Page 4 of 9 10. responsible for contracting Project operation and maintenance, however, the Power Sales Agreement gave the BPMC the authority to approve the contract AGREEMENTS SUBCOMMITTEE REPORT Mr. Sieczkowski reported the Agreements Subcommittee had not met since the last BPMC meeting. OPERATION & DISPATCH SUBCOMMITTEE REPORT Mr. Marchegiani reported the O&D Subcommittee met June 3, 1993. Under the direction of the Subcommittee, AEA has contracted SWEC to perform a two phase hydraulic transient stability analysis at a reservoir elevation below 1080’. April and May reservoir inflows were reported to be higher than anticipated. It is speculated that the increased inflow is early snow melt due to the unusually warm Spring weather. If the increased flow continues, a water reallocation is expected about July 1. Removal of loose rock above the water line at the fish water bypass intake channel is complete. Mr. Marchegiani informed the Committee that material still remained below the water line. AEA is investigating methods and costs to remove the remaining material. Mr. Eberle stated that a recent sonar scan indicated debris around one of the trash racks installed during the winter, however unless a low reservoir level and high winds occur, the remaining debris is not expected to shift or cause additional problems. At a reservoir level low enough to potentially cause a problem, equipment can be brought in to remove the debris and remedy the problem. Maintenance will probably be delayed until next year or when a low enough reservoir occurs to facilitate the use of heavy equipment. Mr. Marchegiani reported that the Woodward governor modification and testing had been completed. Mr. Burlingame added the governor modification performed well, doubling the governor response rate. REVIEW OF PROJECT STATUS Mr. Eberle informed the Committee that the new breaker for Soldotna was expected to be delivered by mid-August. ABB has delayed the capacitor replacement to September or October and has proposed a reduced number of capacitors for replacement. AEA will either require an extended warranty or insist upon full replacement of the capacitors. In response to concerns raised by CEA, AEA is reviewing SVC protection controls with ABB, which may result in some dburger\word\minutes\pme\06-93 BPMC Meeting Minutes June 17, 1993 Page 5 of 9 Ll. modifications. AEA has requested information from ABB on the cost of additional system studies. Mr. Eberle noted the AEA Board of Directors approved the final Project budget of $314,500,000 at its May meeting. Documents are being prepared to release the surplus appropriation ($12.1 million) back to the State. OLD BUSINESS A. Spinning Reserve / Under Frequency Load Shedding Update Mr. Lovas reported institution of the under frequency load shedding schedule was delayed until the end of June. Revisions proposed by GVEA are currently under review. The relays are in place and ready to set. The Alaska Systems Coordinating Council Reliability Criteria Committee (ASCC - RCC) is reviewing final comments on the spinning reserve proposals. The Committee expects to finalize a recommendation in the near future. Bradley Scheduling vs. Spin Requirement Update Mr. Saxton distributed a summary chart of the spinning reserve issue comments submitted from the utilities (Attachment 2). Noting the summary included several issues other than Bradley spin, Mr. Kelly recommended that the focus be narrowed to Bradley spin. Mr. Kelly pointed out that several of the issues were presently being addressed by the ASCC. Mr. Lovas stated the ASCC-RCC could handle the system response and technical questions, however, not the related legal issues (i.e., responsibility for spinning reserve). Mr. Saxton will work with the RCC (specifically, Chairman Tom Lovas) to delineate the technical and legal issues. Mr. Lovas and Mr. Saxton will report back to the BPMC. BPMC Control Over O&M Decisions and Agreements - Master Agreement Mr. Saxton reported that no further activity had occurred on the master operating agreement due to questions created by the legislated changes at AEA, however, the State Attorney General's office is currently reviewing the draft master operating agreement. Mr. Saxton stated that he and Mr. Sieczkowski were in accord on the basic substance of the agreement and the BPMC contractual relationship in the agreement. Mr. Sieczkowski informed the Committee that he would be meeting with the Assistant Attorney General this afternoon to discuss final comments on the draft agreement. Mr. Kelly expressed concern over the handling dburger\word\minutes\pmc\06-93 BPMC Meeting Minute. June 17, 1993 Page 6 of 9 of contracting an operator for Bradley Lake - specifically, if the master operating agreement provided contracting authority to the BPMC. Mr. Saxton responded that the issue was taken care of by the proposed master operating agreement. Mr. Saxton requested direction from the BPMC on proceeding with the development of the master operating agreement, recognizing that the Committee may prefer to wait until other issues related to the transition of AEA are resolved. Referring to AEA's letter requesting direction from the BPMC on the selection of an operator for Bradley Lake, Mr. Garzini stated AEA would, most likely, be responsive to the BPMC's choice. Expressing the need to provide Alaska Industrial Development and Export Authority (AIDEA) information and a schedule on the transfer of project O&M responsibilities to the utilities, Mr. Garzini asked the utilities to submit suggestions. Mr. Garzini added that, more than ever, it was necessary for the utilities to work together in order to accomplish all that needed to be done. Mr. Garzini reiterated that AEA would be responsive to the BPMC. Mr. Saxton advocated completion of the master operating agreement, stating that completion of the remaining agreements had been put on hold while the master operating agreement concept was developed. Mr. Saxton explained that completing the master operating agreement would enable completion of the remaining agreements. Additionally, only minor changes to the already completed agreements were needed in order to fit into the framework of the master operating agreement. Mr. Garzini recommended that the BPMC select an operator. Mr. Garzini stated that approval was expected by the Attorney General's office for a sole source contract, adding that prompt action was needed by the utilities. Mr. Saxton stated that remaining agreement issues, including the master operating agreement could be resolved in a one or two day meeting of the Agreements Subcommittee. Mr. Story stated HEA would have an O&M proposal ready to submit to AEA and the Bradley PMC within two weeks. Noting that the introduction of the proposed master operating agreement had delayed the completion of the three remaining HEA agreements, and recognizing the need to expedite the agreements process, Mr. Story moved that the PMC authorize Ron Saxton and Stan Sieczkowski to complete the master operating agreement. The motion, seconded by Mr. Ritchey, was approv unanimous roll call vote (Action 93-177). dburger\word\minutes\pmc\06-93 BPMC Meeting Minutes June 17, 1993 Page 7 of 9 Mr. Story moved that the BPMC direct AEA to work solely with Homer Electric Association to complete its proposal for the onsite operation and maintenance of the Bradley Lake Hydroelectric Project, in accordance with existing project agreements.'! Mr. Kelly asked if the issue of sole source procurement of the Bradley Lake operation and maintenance contract had been resolved. Mr. Garzini stated, because it was not a typical procurement situation (i.e. the BPMC would actually be paying for the contract), AEA could likely participate in a contract selected by the BPMC. Mr. Garzini added that a formal legal opinion on the procurement issue was requested by AEA. Related to the contracting issue, Mr. Saxton stated that, according to the Power Sales Agreement, the BPMC has the authority to chose the project operator and AEA has the authority to veto the choice. Continuing, Mr. Saxton stated it was his opinion that both AEA and the BPMC had authority to contract and to veto the other's selection. Mr. Saxton added that the language of the proposed master operating agreement allows the State to contract with the operator and requires the approval of the BPMC. Mr. Kelly recommended that the BPMC consider HEA's forthcoming proposal while AEA obtained a legal opinion on State procurement requirements. Mr. Garzini stated that, because of the State's responsibility to the FERC license and bond requirements, AEA should be the contracting authority and that the contract be subject to the approval of the BPMC. Mr. Garzini requested that, if the BPMC develops a contract with an operator, the FERC license, the bond holders and State's interests be protected. Mr. Kelly strongly preferred the BPMC as the contractor, acknowledging the need to maintain AEA's interest. Mr. Garzini later offered an additional alternative, stating that AEA could contract with the BPMC, which in tum, would contract with the project operator. Mr. Story recognized AEA's obligations and its right to veto a contract as well as its technical ability to assist with the development of an operation and maintenance contract proposal. It is HEA's intent to work with AEA to bring a two part proposal to the BPMC which would identify the required services (Part 1) and the technical contract and budget (Part 2). Mr. Story explained that HEA was in the process of working with AEA and had not set up a structure to negotiate a contract with the BPMC. The issue of which entity, the BPMC or AEA, would ultimately be the contractor did not affect the development of the operation and maintenance proposal. Mr. Story clarified the intent of ' Mr. Story's original motion did not contain the word solely. Mr. Story later added the word to clarify the intent of the motion. dburger\word\minutes\pmc\06-93 BPMC Meeting Minutes June 17, 1993 Page 8 of 9 his motion was for the BPMC to direct AEA to work solely with HEA to complete HEA's contract proposal for the operation and maintenance of Bradley Lake. The propriety of HEA's request for exclusive assistance from AEA was questioned. In an effort to expedite the process of completing HEA's operation and maintenance proposal, Mr. Kelly recommended the motion be amended as follows: The BPMC requests AEA assist HEA with the preparation of an operation and maintenance proposal for presentation at the next Bradley PMC meeting. Both Mr. Story and Mr. Ritchey accepted the amended motion. Prior to the vote, Chairman Highers clarified that the motion was not intended to be interpreted as exclusive. Mr. Garzini stated that AEA was available to any BPMC member who requested help. The amended motion was approved by unanimous roll vote (Action 93-178). 12. NEW BUSINESS A. Operations Budget Contingency Fund Resolution Mr. Petrie reported that the Budget Subcommittee was working on a resolution delegating authority to the Budget Subcommittee and expected to have it ready by the next BPMC meeting. Approval of FY94 Payment Obligation The FY94 utility payment schedule and cash flow was distributed to the Committee. Mr. Ritchey noted that the BPMC had previously acted upon the FY94 budget, however had not approved the FY94 utility payment schedule (Attachment 3). Mr. Ritchey advised the Committee that the fund balance (Cash Flow, line 8) may actually be higher than shown, in which case the utility payment amount could be reduced in the future. AEA is reviewing the figures. Mr. Ritchey moved to approve h 4 utility payment schedul nd Mr. Kelly, the motion w Tov unanimous roll vote ( Action 93-179). Approval of Other Payments Mr. Kelly moved to aj ve payments of a ximatel 600 to Bill nnett for legal assistance iated with the Bradl e labor negotiations and $6,215.90 to Ron Saxton for legal counsel. Seconded by Mr. Ritchey, the motion was a Vv nanimous roll call vote (Action 93-180). dburger\word\minutes\pmc\06-93 BPMC Meeting Minutes June 17, 1993 Page 9 of 9 13. . COMMUNICATIONS A. Schedule Next Meeting Thursday, July 22, 1993 10:00 a.m. Chugach Electric Association 14. © ADJOURNMENT The meeting gdjourned at 12:30 p.m. David L. Highe: ae OueslLVCE (Shx— Brent N. Petrie, Secretary dburger\word\minutes\pmc\06-93 ATTACHMENT | State of 4iaska DN waiter J HicKe!. Governor Alaska Energy Authority A Public Corporation June 16, 1993 Bradley Lake Project Management Committee Members SUBJECT: Bradley Lake Hydroelectric Project Operation and Maintenance Dear PMC Members: The legislature adopted HCS CSSB106 that legislates the transfer of the Alaska Energy ues Dearet and programs to the ae of Goer ace Regional Affairs and the Alaska Industrial Development and Export Authority (AIDEA) The apparent intent is to downsize the existing Alaska Energy Authority and contract services to the maximum extent possible. In pursuit of previous discussions with the Bradley Lake Project Management Committee Aig participants, it is the intent of the AEA to solicit proposals for the on-site operation and maintenance of the Bradley Lake Hydroelectric project. The options are to advertise for proposals and do an evaluation and award or to negotiate an Operation and Maintenance contract with a qualified contractor specified by the PMC. AEA hereby requests the Bradley Lake PMC to provide direction for soliciting proposals for the on-site cote and maintenance or to provide us with the Committee's recommendation for an on-site operator in accordance with the existing Bradley Lake project agreements. A formal scope of work for the Operations and Maintenance contract can be developed by AEA. After negotiation of the contract with the AEA and approval of the contractor by the PMC, the contract will be sent to the AEA Board for consideration and action. Sincerely, Gan Ronald A. Executive Director RAG:SES:ds ce: Riley Snell, AIDEA PO. Box 190869 704 East Tudor Road ~=Anchorage, Alaska 99519-0869 (907) 561-7877 Fax: (907) 561-2584 pnonnt my aia fa emrnanoe Page | Railbelt Reserve Issues | assuE | CHUGACH GVEA HOMER MATANUSKA ML&P GENERAL _ Concerned about CONCERNS practices which reduce railbelt reserves below 2 second delay should be accepted. Lack of contractual links between the | Bradley PSA and AIA has made incorporation of Bradley into the Railbelt system more difficult. contractually required levels; deteriorated reliability; inequities in burden of supplying spinning reserves. No load shed in lieu of spin should be permitted until studies show it will perform as well as actual spin. Load shed in lieu of spin program must satisfy basic contractual requirements, based on results. How should load shed in lieu of spin be treated? Supports ASCC efforts. IOC contractual responsibilities may dictate development of reliability criteria by IOC--HEA doesn’t support duplicative efforts. Loads should be restored using spinning reserve of other utilities following a disturbance, as long as firm loads haven’t been interrupted. Extra spinning reserve at times will prevent SILOS. 2 LN3WHOVILY QUALITY OF SPIN All spin shouldn’t be treated equally. Generators should be connected to AGC in order to count spin from that unit as part of a utility’s operating reserve. Indirect AGC shouldn’t be allowed for the spin to be fully counted as operating reserve. Supports a performance factor system for spinning reserves such that slow responding reserves do not count the full amount towards operating reserve or, in the alterative, a limit on the amount of slow responding reserves such as hydro. a Quality will determine the amount of system frequency decline during the loss of system generation or facilities and amount of customer loads shed during disturbances. Cannot support relaxed spin standards unless supported by reasonable analysis. MATANUSKA ML&P Is the unit under AGC control? How fast can the unit respond? ee SYSTEM RESPONSE DIFFERENCES SELLING OF SPIN Should be compared with PSS/E runs using the actual loadflow and generator loading from just prior to the system disturbance. Reviews should be after every major system disturbance or when requested by IOC member. Should not be allowed unless the reserve is backed up by a load shed scheme or the sale can be interrupted in a time frame to prevent first stage load shed. MATANUSKA Spinning reserves loaded with “economy energy sales” results in reduced system spinning reserves and may reduce system reliability. Practice may not be equitable to all involved utilities. Should be curtailed or limited to improve overall system reliability. Selling spin isn’t permitted in the AIA. Economy energy sales should be covered by real spin at one end or the other or by both. Spin sold in nonexistent. LOCATION OF Location and SPINNING distribution of spinning RESERVES reserve by geography, interconnections, and unit should not be specified by the IOC, unless reserves are pooled. Only reserves physically connected with the interconnected system should count toward spinning reserves. | issue | ccacn | oven | nomen | Maranuska Affects the ability of the system to respond to disturbances. Must considered: (1) is the total required system reserves and criteria for “pooling” reserves equitable between utilities; and (2) weak transmission interties erode reliability and limit the ability to economically schedule generation. The resulting unbalanced generation during disturbances opens interties to island sections. Doesn't directly relate to reserves, but to load/resource scheduling in the "island" areas. The IOC should establish a reliability standard by region, if appropriate. The IOC must consider the ability of the system to respond and develop operational criteria to provide such reliability. Transmission limitations should be considered. OPERATING RESERVE CRITERIA If SILOS is disabled due to controller unreliability, the owner of the controller should be obligated to supply the amount of reserves disabled while the controller is fixed. Controller reliability criteria standards should be determined by the Relaying/Reliability subcommittee of the loc. SILO must be enabled for the utility to count SILOS for operating reserves. Should develop a pooling mechanism to ensure that the amount of on- line operating reserves always exceed the minimum required. The ASCC is the proper forum to develop the operating reserve criteria. Supports normal treatment of reserve obligations-- exceptions to be justified, approved. Criteria necessary regarding modification or avoidance of reserve requirements. May be appropriate in certain circumstances. Can’t support relaxing current spinning reserve limitations. BPMC doesn’t have proper authority to limit reserve scheduling--it’s an IOC issue. MATANUSKA ML&P How should spin requirements be handled when shares are allocated? Which criteria--size of generation units, amount of load, kWh sales, historical reliability, number of units on-line should be used to allocated required spin, and in what combination? Bradley is slow. How should slower units be counted when calculating required spin? Must restore contractually required spin to the system. The AIA is the only contract between the intertie participants and is the only area for the resolution of spin/loadshed concerns. Spinning Reserve can’t be changed by the IOC. Operation can lower the amount, but in no case can it increase it. Bradley units are slow to respond. How should spin that responds more slowly than normal be counted when calculating required spin? ISSUE HOMER MATANUSKA FORMULA Current allocation formula is fair and equitable. The “penalty” for utilities with large generators is justified due to (1) loss of larger machine creates larger disturbances; and (2) utilities put on larger machines due to efficiency, with little consideration for reliability penalties. Could support modifications to formula to accommodate two concerns. STUDIES Additional studies needed to determine the maximum amount of hydro spin that will prevent first stage load shed. Should study optimum distribution of spin between units or best mixes of inertia response, fast governor response, slow machine response and AGC response. AEA RESERVE Doesn’t believe AEA OBLIGATION? has a reserve obligation. ENTITLEMENT Water usage should be Is the owner entitled TO SPIN necessary in order to whenever a unit is lap spinning reserve on line, or should a capability. minimum amount of energy be scheduled? Who should pay for energy required and who can claim spin if Bradley is operated as a synchronous condenser? BUTMPAY.XLS ALASKA ENERGY AUTHOKITY BRADLEY LAKE UTILITY PAYMENTS June _| FY Total $352,637 | $4,231,647 $300,438 $352,637 $352,637 $300,438 $300,438 $196,038 $11,600 lv a Lt £ NOTE: FY-94 cash flow cell B-9 ($496,000) is the $910,000 excess of operating funds FY-92 less $494,000 utilized on the FY-93 cash flow plus $80,000 estimated excess from FY-93 operating funds. tyra 45,102 33,1 fo 335,000 333,000 30 249,608 6,266 o rain 2,998,169 3,938,826 Mr. Dave Calvert City of Seward Sth & Adams P.O. Box 167 Seward, Alaska 99664 Mr. David L. Highers Chugach Electric Association 560I Minnesota Drive P.O. Box 196300 Anchorage, Alaska 99519-6300 Mr. Michael P. Kelly Golden Valley Electric Association 758 Illinois P.O. Box 1249 Fairbanks, Alaska 99707 Mr. Eugene N. Bjornstad Chugach Electric Association 5601 Minnesota Drive P.O. Box 196300 Anchorage, Alaska 99519-6300 Mr. John Cooley Chugach Electric Association 560I Minnesota Drive P.O. Box 196300 Anchorage, Alaska 99519-6300 Mr. Bob Hansen Golden Valley Electric Association 758 Illinois P.O. Box 71249 Fairbanks, Alaska 99707 Mr. Kurt Dzinich 4511 N. Riverside Drive Juneau, Alaska 99801 bpme(MX i> Distribution List Bradley Lake Project Management Committee Mr. Ken Ritchey Matanuska Electric Association 163 Industrial Way P.O. Box 2929 Palmer, Alaska 99645-2929 Mr. N. L. Story Homer Electric Association 3977 Lake Street Homer, Alaska 99603 Mr. Thomas R. Stahr Municipal Light and Power 1200 E. Ist Avenue Anchorage, Alaska 99501-1685 Mr. James Hall Matanuska Electric Association 163 Industrial Way P.O. Box 2929 Palmer, Alaska 99645-2929 Mr. S.C. Mathews Homer Electric Association 3977 Lake Street Homer, Alaska 99603 Mr. Ron Saxton Ater Wynne Hewitt Dodson & Skerritt 225 S.W. Columbia, Suite 1800 Portland, OR 97201-6618 Mr. Robert Hufman Utilities Consulting Services 1018 Galena Street Fairbanks, Alaska 99709 Distribution List Bradley Lake Project Management Committee os Research Agency P.O. Box Y Juneau, Alaska 99811-3100 Mr. Hank Nikkels Anchorage Municipal Light & Power 1200 East Ist Street Anchorage, Alaska 99501 Mr. Bradley Evans Golden Valley Electric Association 758 Illinois P.O. Box 71249 Fairbanks, Alaska 99707 Mr. Mike Yerkes P.O. Box 36 Skwentna, Alaska 99667 Mr. Tim McConnell Anchorage Municipal Light & Power 1200 East Ist Street Anchorage, Alaska 99501 > 90Q1\D0068L(1) Mr. David Burlingame Chugach Electric Association, Inc. P.O. Box 196300 Anchorage, Alaska 99519-6300 Mr. Tom Lovas Chugach Electric Association, Inc P.O. Box 196300 Anchorage, Alaska 99519-6300 Mr. Vince Mottola Fairbanks Municipal Utilities System P.O. Box 72215 Fairbanks, Alaska 99707 Mr. Dave Fair Homer Electric Association 3977 Lake Street Homer, Alaska 99603 EXHIBIT 6 BPMC ACTION SUMMARY LOG Revised 9/7/93 12:24:14 PM DATE PAGE ITEM ACTION TYPE RESOLUTION STATUS DESCRIPTION 6/30/88 3 2 88 - 1 MOTION - APPROVED PROCEED WITH LONG TERM FINANCING 6/30/88 3 2 88 - 2 MOTION - APPROVED ESTABLISH FINANCE SUBCOMMITTEE 6/30/88 4 4 88 - 3 MOTION - APPROVED RETAIN RON SAXTON, LEGAL COUNSEL, TO DRAFT BYLAWS; COST DIVIDED BY PARTICIPANT SHARE 6/30/88 5 5 88 - 4 MOTION - APPROVED ESTABLISH TCC SUBCOMMITTEE TO RESEARCH AND DEFINE RESPONSIBILITIES OF OPERATOR, OWNER AND DISPATCHER 8/29/88 2 6 88 - 5 MOTION - APPROVED AUTHORIZE REPRESENTATIVE OF EACH UTILITY TO ATTEND NEW YORK FINANCE MEETING SEPTEMBER 1988; REIMBURSEMENT OF TRAVEL EXPENSES, EXCLUDING LABOR, FROM CONSTRUCTION FUNDS 8/29/88 2 6 88 - 6 MOTION - APPROVED AUTHORIZE RON SAXTON TO ATTEND NEW YORK FINANCE MEETING, SEPTEMBER 1988; COST REIMBURSEMENT FROM CONSTRUCTION FUNDS 8/29/88 3 8 88 - 7 MOTION - APPROVED ASSIGN TCC SUBCOMMITTEE TO OVERSEE CONSTRUCTION AND MAINTAIN COST CONTROL 8/29/88 3 8 88 - 8 MOTION - APPROVED TCC SUBCOMMITTEE DIRECTED TO APPOINT MEMBER TO AEA CONFIGURATION CONTROL BOARD (WITHOUT LABOR COST REIMBURSEMENT) 8/29/88 5 9 88 - 9 MOTION - APPROVED TABLE CONSIDERATION OF O&M DEFINITIONS UNTIL NEXT MEETING 9/27/88 4 8 88- 10 MOTION - APPROVED ADOPTION OF O&M DEFINITIONS 10/21/88 2 6B 88- 11 MOTION - APPROVED AUTHORIZE DRAFT PRESS RELEASE - SOUTHERN INTERTIE 10/21/88 4 7 88-12 MOTION 88-1 APPROVED ADOPTION OF BYLAWS BPMC ACTION SUMMARY LOG DATE PAGE 11/30/88 2 11/30/88 3) 11/30/88 4 1/20/89 4 3/3/89 6 3/3/89 4 4/6/89 2 4/6/89 2 4/6/89 3 4/6/89 3 4/6/89 s 4/6/89 4 5/4/89 2 ITEM 5B 6B 7B 10 10 12 88 - 88 - 89 - 89 - 89 - 89 - 89 - 89 - ACTION 13 14 15 16 17 18 19 20 21 22 23 24 25 TYPE MOTION MOTION MOTION MOTION MOTION DIRECTIVE MOTION MOTION MOTION MOTION MOTION MOTION MOTION RESOLUTION 88 89 89 STATUS APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED Revised 9/7/93 12:24:26 PM DESCRIPTION ELECTION OF OFFICERS: KELLY, HIGHERS, LERESCHE APPOINTMENT OF FINANCE TEAM: PALIN, KELLY, HIGHERS CAPITALIZATION OF SEI STABILITY STUDY COST; N.T.E. $60,000 REQUIRE SUBMITTAL OF ALL NECESSARY DOCUMENTS TO REA BY 2/20/89 PMC DECLARATION OF SUPPORT FOR EXECUTIVE ORDER NO. 75, CHANGE APA TO AEA, TRANSFER PDRLF TO AEA, ESTABLISH BULK FUEL LOAN FUND ORGANIZATION AND ASSIGNMENT OF SUBCOMMITTEES: INSURANCE, BUDGET, O&D, AND POSSIBLY TAX AND FERC LICENSE ADOPT TCC SUBCOMMITTEE REPORT AND RECOMMENDATION AGAINST PTI 115 KV ADDITIONS AS SOLUTION TO STABILITY PROBLEM ADOPT INSURANCE SUBCOMMITTEE REPORT ADOPT BUDGET SUBCOMMITTEE REPORT ADOPT TAX SUBCOMMITTEE REPORT ADOPT FERC SUBCOMMITTEE REPORT ADOPT O&D SUBCOMMITTEE REPORT ADOPT FINANCE TEAM REPORT Page 2 BPMC ACTION SUMMARY LOG DATE 5/4/89 5/4/89 5/4/89 5/4/89 6/8/89 6/8/89 6/8/89 6/8/89 6/8/89 6/8/89 7/28/89 7/28/89 PAGE ITEM 10 13, A 13 B 12 B 13 D 12C 13 B 89 - 89 - 89 - 89 - 89 - 89 - 89 - 89 - 89 - ACTION 26 27 28 29 30 31 32 33 34 35 36 37 TYPE MOTION DIRECTIVE MOTION MOTION MOTION CONSENSUS MOTION MOTION MOTION MOTION MOTION MOTION RESOLUTION so- 5 STATUS APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED Revised 9/7/93 12:24:33 PM DESCRIPTION ADOPT TCC SUBCOMMITTEE REPORT SUBCOMMITTEES INSTRUCTED TO CLARIFY REPORTING ADOPT O&D SUBCOMMITTEE REPORT ENGINEER'S RISK ASSESSMENT REPORT; PROJECT COST AUTHORIZE $20,000 TO COMPLETE ALLOCATION AND SCHEDULING AGREEMENT DETERMINATION THAT MR. SAXTON WOULD REPRESENT COLLECTIVE INTEREST OF PURCHASING UTILITIES, AS RELATED TO THE BRADLEY BOND ISSUE (NOT PMC, WHICH WOULD INCLUDE AEA) BPMC SUPPORT FOR UTILITY OPERATION OF THE PROJECT AFTER 2 YEAR WARRANTY PERIOD EXPIRES REQUEST PROJECT ENGINEER TO BRIEF TCS SUBCOMMITTEE ON GOVERNOR STABILITY AND DIRECT APA NOT TO RELAX CONTRACTUAL REQUIREMENTS BEFORE SURGE TANK ASSESSMENT APPOINT KENT WICK TO FINANCE TEAM APPOINT KEN RITCHEY TO INSURANCE SUBCOMMITTEE RETAIN LINDSEY, HART, NEIL & WEIGLER FOR LEGAL OPINION REQUESTED BY UNDERWRITERS ON BOND REFUNDING TCS SUBCOMMITTEE DIRECTED TO SELECT REPRESENTATIVE TO REVIEW FDP DRAFT TECHNICAL STANDARDS Page = BPMC ACTION SUMMARY LOG DATE 8/21/89 8/21/89 8/21/89 8/21/89 8/21/89 8/21/89 10/19/89 10/19/89 10/19/89 10/19/89 11/30/89 11/30/89 PAGE ITEM 2 5 3 6B 5 6B 5 6B 5 0 6 0 2 6 7 12 8 12 8 12 3 8D 4 10 ACTION 89- 38 89- 39 89- 40 89- 41 89- 42 89- 43 89- 44 89- 45 89- 46 89- 47 89 - 89 - 48 49 TYPE CONSENSUS MOTION MOTION MOTION CONSENSUS AGREEMENT MOTION MOTION MOTION MOTION MOTION MOTION RESOLUTION 89- 6 89- 7 STATUS APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED FAILED FAILED FAILED APPROVED Revised 9/7/93 12:24:40 PM DESCRIPTION REDIRECT RESPONSIBILITY TO REVIEW FDP DRAFT TECHNICAL STANDARDS TO. O&D SUBCOMMITTEE RATIFICATION OF COMMITTEE ACTIONS PRIOR TO AUGUST 8, 1989 SECTION 31 COST AND PROJECT COST IDENTIFICATION REVISED EXHIBIT A OF POWER BOND RESOLUTION AND SUPPLEMENTAL RESOLUTION, EXHIBIT E, TO PSA TCS SUBCOMMITTEE CHARGED TO STUDY WAYS TO IMPROVE SYSTEM PERFORMANCE, INCLUDING SURGE TANK LETTER AGREEMENT TO AVOID CONFLICTS OF INTEREST; BETWEEN BPMC UTILITIES (EXCLUDES AEA) AND LINDSEY, HART, NEIL & WEIGLER (SIGNED DURING MEETING) LETTER OF COMMENDATION TO AEA ON SUCCESSFUL BOND SALE SMITH BARNEY BOND FINANCING REPORT AS SECTION 31 COST DFI SURGE TANK ANALYSIS AS PROJECT COST, UNDER AEA OBJECTION - AEA TO RECONSIDER DFIINTERTIE STUDY AS PROJECT COST, UNDER AEA OBJECTION - AEA TO RECONSIDER PURCHASE OF E&O INSURANCE $25,000 FMAA CONTRACT CONSULTANT TO O&D SUBCOMMITTEE TO ASSIST WITH O&M AGREEMENTS AS PROJECT COST Page 4 BPMC ACTION SUMMARY LOG DATE PAGE 11/30/89 6 11/30/89 6 11/30/89 7 11/30/89 7 1/8/90 4 1/18/90 7 1/18/90 7 1/18/90 7 1/18/90 7 1/18/90 8 1/18/90 8 ITEM 12.C 12.C 12.C 12D 12 12 12 12 13 B 13. C 89 - 89 - 89- 89 - 89 - 90 - 90 - 90 - 90 - 90 - 90 - ACTION 50 51 52 53 54 55 56 57 58 59 60 TYPE MOTION MOTION MOTION MOTION CONSENSUS MOTION MOTION MOTION MOTION MOTION MOTION RESOLUTION STATUS APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED Revised 9/7/93 12:24:47 PM DESCRIPTION RELEASE OF UTILITY COST FIGURES FOR REIMBURSEMENT AS COMPILED BY LEGAL COUNSEL UTILITY BOND ISSUE COSTS (INCLUDING TCS COSTS) AS PROJECT COST UTILITY SECTION 31 COSTS DFI SURGE TANK ANALYSIS AS PROJECT COST RENAME BUDGET/FINANCE SUBCOMMITTEE TO BUDGET SUBCOMMITTEE AND APPOINTMENT OF MEMBERS SEPARATE SWEC'S THREE SURGE TANK RECOMMENDATIONS FOR INDIVIDUAL CONSIDERATION SWEC SURGE TANK ANALYSIS RECOMMENDATION NO. 1: MAINTAIN CURRENT LOAD ACCEPTANCE RATE AND CURRENT HYDRAULIC AND EQUIPMENT DESIGN SWEC SURGE TANK ANALYSIS RECOMMENDATION NO. 2: IMPLEMENTATION OF ADDITIONAL NEEDLE OPERATING MODE SWEC SURGE TANK ANALYSIS RECOMMENDATION NO. 3: DISCONTINUE FURTHER INVESTIGATIONS OF SURGE TANKS SHARE COST OF GENERATOR PERFORMANCE TESTING 50/50 WITH IOC LETTER SUPPORTING DELETION OF AMEDNMENTS TO PDRLF LEGISLATION (TO AVOID RETURNING PROJECT FUNDS TO STATE GENERAL FUND) Page 5 BPMC ACTION SUMMARY LOG DATE 1/18/90 2/27/90 2/27/90 2/27/90 2/27/90 4/6/90 4/1/1690 4/6/90 5/17/90 5/17/90 7/7/90 7/17/90 7/17/90 PAGE ITEM 2 6 3 9 6 13 2 7 3 7 4 6 ACTION 90- 61 90- 62 90- 63 90- 64 90- 65 90- 66 90- 67 90- 68 90- 69 90- 70 90- 71 90- 72 90 - 73 TYPE MOTION MOTION MOTION MOTION MOTION DIERECTIVE MOTION MOTION MOTION CONSENSUS MOTION MOTION CONSENSUS RESOLUTION STATUS APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED Revised 9/7/93 12:24:54 PM DESCRIPTION FUNDING OF CEA MICROWAVE LINK AS PROJECT COST (UP TO $50,000) CAPITALIZE PSA SECTION 13A COSTS THROUGH ISSUE OF ADDITIONAL BONDS FRONT END O&M COSTS, WHERE FEASIBLE, TO REDUCE INTITAL RATE IMPACT FUND DECNET AS PROJECT COST AT $117,000 ADDITIONAL $30,000 FUNDING FOR GENERATOR TESTING APPOINTMENT OF O&D SUBCOMMITTEE WORK GROUP TO COMPLETE ALLOCATION & SCHEDULING AGREEMENT TABLE TEST PERIOD POWER SALES AGREEMENT SUPPORT AEA REQUEST FOR IMMEDIATE DISMISSAL OF IBEW/HEA LAWSUIT AND. OFFER RON SAXTON'S LEGAL COUNSEL AUTHORIZE CEA PURCHASE OF MICROWAVE EQUIPMENT UP TO $90,000 CEA WILL ASSIST HEA TO DETERMINE HEA LINE LOSSES; HEA WILL ASSUME SALARY COST AUTHORIZE ACTUAL SECTION 31 COSTS; NOVEMBER 1989 - JUNE 1990; $86,532.09 RESERVE $300,000 FOR ADDITIONAL UTILITY SECTION 31 COST FROM JULY 1990 - DATE OF COMMERCIAL OPERATION ELECTION OF OFFICERS: KELLY, HIGHERS Page 6 BPMC ACTION SUMMARY LOG DATE 7/17/90 9/21/90 9/21/90 9/21/90 9/21/90 9/21/90 11/28/90 11/28/90 11/28/90 11/28/90 11/28/90 11/28/90 PAGE ITEM 13 C 10 13 B 13 B 12 B 12 B 12.C 12D 90 - 90 - 90 - 90 - 90 - 90 - 90 - 90 - 90 - ACTION 74 75 76 77 78 79 80 81 82 83 84 85 TYPE MOTION CONSENSUS DIRECTIVE CONSENSUS MOTION MOTION CONSENSUS CONSENSUS MOTION MOTION MOTION MOTION RESOLUTION STATUS APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED Revised 9/7/93 12:25:01 PM DESCRIPTION SUPPLEMENTAL BOND RESOLUTION, AS CORRECTED NO COST TEST POWER, WORK GROUP APPOINTED TO REVIEW BUDGET SUBCOMMITTEE DIRECTED TO WORK WITH AEA TO DETERMINE ACCEPTABLE PERCENT OF OVERHEAD - TASKED TO PREPARE RESOLUTION ESTABLISH $5.00/MWH RATE FOR USE OF ANOTHER PURCHASING UTILITY'S SHARE; ANNUAL ACCOUNTING $30,974.00 FOR HEA DIAMOND RIDGE RTU DUAL PORTING AS PROJECT COST REIMBURSE CEA $95,441.09 FOR HOMER AND SOLDOTNA SUBSTATION RELAY ADDITIONS FY92 O&M BUDGET AEA OVERHEAD COST SET AT $250,000 AND WILL BE REVIEWED ANNUALLY BY THE BUDGET SUBCOMMITTEE STAN SIECZKOWSKI APPOINTED CHAIRMAN OF O&D SUBCOMMITTEE PMC EXPENSES OF $19,352.47 AS PROJECT COST UTILITY AND LEGAL EXPENSES OF $26,274.42 AS SECTION 31 COST REIMBURSEMENT TO HEA FOR COST OF DEAD END SWITCHING AT BRADLEY JUNCTION AS PROJECT COST DELETE BRAKING RESISTORS (WITH RESERVATION TO RECONSIDER PRIOR TO CLOSE-OUT) Page =~ vi BPMC ACTION SUMMARY LOG DATE 3/5/91 3/5/91 3/5/91 3/5/91 3/5/91 3/5/91 3/5/91 3/5/91 6/6/91 6/6/91 6/6/91 6/6/91 PAGE ITEM 2 6 3 6 3 6 3 7 > 8 > 9 6 11 7 12 6 11 7 11 9 11 2 11 ACTION 91- 91- 91- 91- 91- 91- 91- 91- 91- 91- o1- 91- 86 87 88 89 91 92 93 94 95 96 97 TYPE MOTION MOTION CONSENSUS DIRECTIVE MOTION DIRECTIVE DIRECTIVE MOTION DIRECTIVE DIRECTIVE MOTION MOTION RESOLUTION STATUS APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED Revised 9/7/93 12:25:08 PM DESCRIPTION CEA TO INSTALL OVER FREQUENCY TRIPPING AT QUARTZ CREEK; N.T.E $13,500 TCS SUBCOMMITTEE TASKED TO DETERMINE MAXIMUM KENAI IMPORT/MINIMUM BRADLEY LAKE OPERATING LIMIT SPINNING RESERVE AND LOAD SHEDDING ISSUES WILL BE DECIDED BY PMC (NOT SUBCOMMITTEES) INSURANCE SUBCOMMITTEE TO INVESTIGATE BUSINESS INTERUPTION INSURANCE FY92 O&M BUDGET FOR $2,207,000 O&D SUBCOMMITTEE TASKED TO REVIEW SPINNING RESERVE ISSUE O&D SUBCOMMITTEE TASKED TO DETERMINE ALLOCATION METHOD FOR PERIOD PRIOR TO START OF COMMERCIAL OPERATION SECTION 31 COSTS OF $21,982.23 APPOINTMENT OF AGREEMENTS SUBCOMMITTEE; TASKED TO MEET AND CONSOLIDATE O&M AGREEMENTS AS SOON AS POSSIBLE TCS SUBCOMMITTTEE TASKED TO DEVELOP OPERATING SCENARIOS WITH 80 AND 90 MW CAPS REIMBURSEMENT OF PMC EXPENSES AUTHORIZE CEA INSTALLATION OF TRANSFER TRIPPING OF SOLDOTNA AND DAVES CREEK CAPACITOR BANKS; $30,000 Page 8 BPMC ACTION SUMMARY LOG DATE 6/6/91 7/2/91 7/2/91 7/2/91 7/2/91 7/2/91 W291 8/23/91 8/23/91 8/23/91 8/23/91 8/23/91 PAGE ITEM lL E 13 A 13 B 13D ll 12 B 12. Cc 12D ACTION 91- 91- 91- o1- 91- 91- 91- o1- 91- 91- 91- 91- 98 100 101 102 103 104 105 106 107 108 109 TYPE MOTION MOTION MOTION MOTION MOTION MOTION MOTION MOTION MOTION MOTION MOTION MOTION RESOLUTION 91- 9 STATUS TABLED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED Revised 9/7/93 12:25:15 PM DESCRIPTION AUTHORIZE CEA TO INSTALL TRANSFER TRIPPING ON BERNICE LAKE - SOLDOTNA AND SOLDOTNA - QUARTZ CREEK 69 KV CIRCUITS; N.T.E. $100,000 AND $30,000 TCS SUBCOMMITEE TASKED TO SET INTERIM OPERATING CRITERIA SUBJECTING HEA AND SES TO NO MORE THAN STAGE TWO LOAD SHEDDING O&D SUBCOMMITTEE TASKED TO DEVELOP PROCEDURE TO RECORD CEA SERVICE REQUIREMENTS FOR COMBUSTION TURBINE SUPPORT OF BRADLEY LAKE HIGHER PAYMENT TO TRUSTEE FOR FIRST FOUR MONTHS OF FY92 (TO ELIMINATE CASH FLOW PROBLEM) - PAYMENT DUE ON FIRST OF EACH MONTH ELECTION OF OFFICERS; CURRENT OFFICERS RETAINED: KELLY, HIGHERS, BUSSELL STATEMENT OF AEA OBLIGATION TO COMPLETE THE PROJECT - COST SHARED WITH UTILITIES AS AMENDED, ALLOCATION AND SCHEDULING PROCEDURES, SUBJECT TO COMPLETION OF EXHIBITS A AND B INTERIM APPROVAL CEA/AEA DISPATCH AGREEMENT INSTALL TRANSFER TRIPPING, $35,000 - CEA; $62,000 - HEA COMMITTEE EXPENSES OF $17, 480,33 FOR LEGAL FEES AS PROJECT COST ALLOCATION OF SECTION 31 BALANCE TO ONGOING PMC COSTS OR TO DEFRAY BUDGET COSTS AEA ISSUE OF SVC CONTRACT AWARD AND NOTICE TO PROCEED Page 9 BPMC ACTION SUMMARY LOG DATE 10/25/91 11/19/91 11/19/91 11/19/91 1/13/92 1/13/92 2/28/92 2/28/92 3/26/92 3/26/92 3/26/92 3/26/92 3/26/92 PAGE 92 ITEM 12 A WA 11B 1A 12 B 12 A 12 B 13, A 13 B 13.C 13D 13 E ACTION 91- 110 91- 111 91- 112 91- 113 92- 114 92- 115 92- 116 92- 117 92- 118 92- 119 92- 120 92- 121 92- 122 TYPE MOTION CONSENSUS MOTION MOTION MOTION MOTION MOTION MOTION MOTION MOTION MOTION MOTION MOTION 91 RESOLUTION 10 STATUS APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED FAILED APPROVED APPROVED Revised 9/7/93 12:25:22 PM DESCRIPTION COMMITTEE EXPENSES OF $22,499.82 IMPLEMENTATION OF INTERIM OPERATING GUIDELINES AS ADOPTED BY THE TCS SUBCOMMITTEE CEA/AEA DISPATCH AGREEMENT REVISED ALLOCATION AND SCHEDULING PROCEDURES COMMITTEE EXPENSES OF $19,538.54 RAILBELT SPINNING RESERVE AND LOAD SHEDDING ISSUES FORWARDED TO ASCC - RCC COMMITTEE EXPENSES, AS CORRECTED INTERIM PROJECT OUTPUT LEVEL OF 90 MW AS DEFINED BY TCS SUBCOMMITTEE COMMITTEE EXPENSES OF $39,695.19 LETTER TO LB&A IN SUPPORT OF MICROWAVE UPGRADE APPROVAL OF BUDGET SUBCOMMITTEE FY93 BUDGET RECOMMENDATION (WHICH EXCLUDED AEA OVERHEAD) ALLOCATION AND SCHEDULING PROCEDURES, EXHIBIT A TCS SUBCOMMITTEE DIRECTED TO APPOINT REPRESENTATIVE TO PARTICPATE IN Page 10 BPMC ACTION SUMMARY LOG DATE 3/26/92 4/28/92 4/28/92 4/28/92 4/28/92 6/16/92 6/16/92 7/23/92 7/23/92 7/23/92 7/23/92 1/23/92 PAGE ll 11 12 ITEM 13 12 12 13 13 13 12 12 12 13 13 F ACTION 92- 123 92- 124 92- 125 92- 126 92- 127 92- 128 92- 129 92- 130 92- 131 92- 132 92- 133 92- 134 TYPE MOTION MOTION MOTION MOTION MOTION MOTION DIRECTIVE MOTION MOTION MOTION MOTION MOTION RESOLUTION STATUS APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED Revised 9/7/93 12:25:29 PM DESCRIPTION TUNNEL INSPECTION REIMBURSEMENT OF SUBMITTED UTILITY STARTUP TESTING COSTS INSURANCE SUBCOMMITTEE TASKED TO REVIEW PROJECT INSURANCE OPTIONS DISPATCH OPERATIONS SUMMARY REMOVAL OF TCS SUBCOMMITTEE OPERATING RESTRICTIONS (DOES NOT AFFECT O&D ESTABLISHED MINIMUM OPERATING LEVEL OF 10 MW) COMMITTEE EXPENSES OF $9,735.79 (SECTION 31 COSTS) COMMITTEE EXPENSES OF $39, 695.19 (SECTION 31 COSTS) AND $430.16 (PROJECT COSTS) APPOINTMENT OF NOMINATING COMMITTEE RING-DOWN CIRCUIT FOR $30,000 (PROJECT COST) CONSTRUCTION COST AUDIT AS PROJECT COST; $20,000 SEPARATION OF OFFICE OF SECRETARY/TREASURER ELECTION OF OFFICERS: HIGHERS, STORY, GARZINI, RITCHEY COMMITTEE EXPENSES OF $23,537.01 (SECTION 31 COSTS) Page 1/1 BPMC ACTION SUMMARY LOG DATE 7/23/92 7/23/92 8/24/92 8/24/92 10/9/92 10/9/92 10/9/92 10/9/92 10/9/92 11/20/92 11/20/92 PAGE 13 13 10 ITEM 13 C 13 C 13, A 13 C 11 B 12D ACTION 92- 92- 92- 92- 92 - 92- 92- 92- 92- 92- 92- 135 136 137 138 139 140 141 142 143 144 145 TYPE MOTION MOTION MOTION MOTION MOTION MOTION MOTION MOTION MOTION DIRECTIVE MOTION RESOLUTION STATUS APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED TABLED APPROVED APPROVED Revised 9/7/93 12:25:36 PM DESCRIPTION TCS SUBCOMMITTEE AND O&D SUBCOMMITTEE TASKED TO INVESTIGATE PROJECT FREQUENCY OSCILLAITON PROBLEM AND IDENTIFY SHORT TERM SOLUTION TCS SUBCOMMITTEE AND O&D SUBCOMMITTEE TASKED TO INVESTIGATE PROJECT FREQUENCY OSCILLATION PROBLEM AND IDENTIFY LONG TERM SOLUTION BUDGET AMENDMENT OF $30, 000 TO CONTINUE UAF SEISMIC MONITORING PROGRAM FOR ONE YEAR MR. SAXTON AND MR. SIECZKOWSKI TASKED TO PROVIDE SUMMARY LIST OF PMC DIRECTIVES TO THE SUBCOMMITTEES AUGUST 24, 1992 PMC MEETING MINUTES NOTING UTILITY MANAGERS' DISAPPROVAL OF ATTACHED AUGUST 18, 1993 O&D SUBCOMMITTEE MEETING SUMMARY CONTENT STATEMENT OF NO CHANGE TO SUBCOMMITTEE VOTING RIGHTS OR MEMBERSHIPS MR. SAXTON TASKED TO INVESTIGATE SPINNING RESERVE ISSUES COMMITTEE EXPENSES OF $24,533.71 CONSIDERATION OF REVISED ALLOCATION AND SCHEDULING PROCEDURE, SECTION 5, HOURLY SCHEDULES UTILITIES TASKED TO PROVIDE WRITTEN COMMENTS ON SPINNING RESERVE ISSUES TO RON SAXTON ALLOCATION AND SCHEDULING PROCEDURES, EXHIBIT E Page 12 BPMC ACTION SUMMARY LOG DATE 11/20/92 11/20/92 1/14/93 1/14/93 1/14/93 3/3/93 3/3/93 3/3/93 3/3/93 3/3/93 3/3/93 3/3/93 PAGE 10 10 11 13 10 10 12 12 13 ITEM 12 12 12 12 12 ll ll 12 12 12 13 13 92 - 92- 93 - 93 - 93 - 93 - 93 - 93 - 93 - 93 - 93 - 93 - ACTION 146 147 148 149 150 151 152 153 154 155 156 157 TYPE MOTION MOTION MOTION DIRECTIVE MOTION MOTION DIRECTIVE MOTION MOTION MOTION MOTION MOTION RESOLUTION STATUS APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED Revised 9/7/93 12:25:43 PM DESCRIPTION CONSTRUCTION COST AUDIT; AMOUNT REVISED N.T.E. $35,000 BUDGET SUBCOMMITTEE PLACEMENT OF CONTRACT FOR ANNUAL O&M COST AUDIT COMMITTEE EXPENSES (LEGAL FEES), AUGUST 1992 - JANUARY 1993 COMMITTEE MEMBERS TASKED TO REVIEW AGREEMENTS LIST AND SUBMIT CORRECTIONS TO TOM LOVAS BUDGET SUBCOMMITTEE AUTHORITY TO AMEND BUDGET LINE ITEMS UP TO 10% OF OVERALL O&M BUDGET COMMITTEE MEMBERS DIRECTED TO SUBMIT WRITTEN COMMENTS ON SPINNING RESERVE ISSUES TO RON SAXTON BY MARCH 30, 1993 MR. SAXTON TASKED TO DRAFT A CLAUSE FOR INCLUSION IN PENDING AGREEMENTS SUBJECTING THE PENDING AGREEMENT TO A FUTURE MASTER OPERATING AGREEMENT REVISED ALLOCATION AND SCHEDULING PROCEDURES AEA DIRECTED TO GIVE NOTICE TO THE LEGISLATURE OF INTENT TO ISSUE BONDS PMC REIMBURSEMENT OF INITIAL BOND REFUNDING COSTS N.T.E. $25,000 AUTHORIZE O&D SUBCOMMITTEEE TO INCREASE PROJECT OUTPUT UP TO 120 MW ONLY BY CONSENSUS OF THE SUBCOMMITTEE COMMITTEE EXPENSES (LEGAL FEES) FOR JANUARY 1993 Page 13 BPMC ACTION SUMMARY LOG DATE 3/30/93 3/30/93 4/16/93 5/13/93 5/13/93 5/13/93 6/17/93 6/17/93 6/17/93 6/17/93 6/17/93 7/22/93 PAGE ITEM 6 ll 8 12 8 12 5 11 6 ll 9 11 8 12 8 12 ACTION 93 - 93 - 93 - 93 - 93 - 93 - 93 - 93 - 93 - 93 - 93 - 93 - 158 159 160 161 162 163 164 165 166 167 168 169 TYPE CONSENSUS MOTION DIRECTIVE MOTION MOTION MOTION DIRECTIVE MOTION MOTION MOTION MOTION MOTION RESOLUTION 93 ll STATUS APPROVED FAILED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED Revised 9/7/93 12:25:50 PM DESCRIPTION MINIMUM SAVINGS OF $130,000 REQUIRED FOR REFUNDING APPROVAL OF BUDGET SUBCOMMITTEE FY94 BUDGET RECOMMENDATION (WHICH EXCLUDED AEA OVERHEAD) BRADLEY BOND REFUNDING DECLARED A CLOSED ISSUE DUE TO LACK OF UTILITY SUPPORT $600,000 FOR HEA FRITZ CREEK TRANSMISSION LINE ACCELERATION COST AS SECTION 31 COST $107,115.45 FOR DIAMOND RIDGE RELAYING COST AS CONSTRUCTION COST COMMITTEE LEGAL EXPENSES FOR FEBRUARY - APRIL 1993; $45,803.76 MR. SAXTON AND MR. LOVAS TO WORK TOGETHER TO DELINEATE SPINNING RESERVE TECHNICAL AND LEGAL ISSUES RON SAXTON AND STAN SIECZKOWSKI AUTHORIZED TO COMPLETE MASTER OPERATING AGREEMENT AEA DIRECTED TO ASSIST HEA WITH PREPARATION OF A PROPOSAL FOR THE OPERATION AND MAINTENANCE OF BRADLEY LAKE FY 94 UTILITY PAYMENT SCHEDULE COMMITTEE LEGAL EXPENSES; BILL BENNETT - $3,600 FOR LABOR NEGOTIATIONS AND RON SAXTON - $6,215.90 BUDGET SUBCOMMITTEE AUTHORITY TO AMEND O&M BUDGET Page 14 BPMC ACTION SUMMARY LOG DATE 7/22/93 7/22/93 7/22/93 7/22/93 7/22/93 7/22/93 7/22/93 8/17/93 8/17/93 PAGE 10 ITEM 11 D 12 A 12 B 12.C 12D 12 E 12E lL E 12 A 93 - 93 - 93 - 93 - 93 - 93 - 93 - 93 - 93 - ACTION 170 171 172 173 174 175 176 177 178 TYPE MOTION MOTION MOTION MOTION MOTION MOTION MOTION DIRECTIVE MOTION RESOLUTION STATUS TABLED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED APPROVED Revised 9/7/93 12:25:57 PM DESCRIPTION UNTIL NEXT MEETING, AMENDMENT OF BYLAWS TO CLARIFY DELEGATION OF POWER TO SUBCOMMITTEES ELECTION OF OFFICERS, CURRENT OFFICERS RETAINED: HIGHERS, STORY, MCCROHAN, RITCHEY COMMITTEE LEGAL EXPENSES FOR MAY AND JUNE 1993, $17,602.62 AND 23,345.03 ACCEPT HEA APPLICATION FOR THE OPERATION AND MAINTENANCE OF BRADLEY LAKE REIMBURSMENT OF UTILITY SVC TESTING COSTS INTERIM LETTER AGREEMENT (CEA AND AEA) FOR SVC MAINTENANCE SOUTHERN INTERTIE STUDIES TO BE PERFORMED BY ABB; N.T.E. $100,000 AS PROJECT COST COMMITTEE TO PROVIDE WRITTEN COMMENTS TO MR. SAXTON ON PROPOSED RESOLUTION TO AMEND BYLAWS - SUBCOMMITTEE AUTHORITY COMMITTEE LEGAL EXPENSES FOR JULY 1993; $24,104.06 Page 15 EXHIBIT 7 BRADLEY PROJECT MANAGEMENT COMMITTEE BYLAWS TABLE OF CONTENTS STATEMENT OF OBJECTIVES.... AUTHORITY OF BRADLEY PROJECT MANAGEMENT COMMITTEE... . cece eeeeee eeee eee OFFICES... cccecccecseee eee ceee eeeeee eeeees REPRESENTATIVES........4. eceee COMMITTEE MEETINGS......... Annual Meeting....... Regular Meetings..... Special Meetings..... Notice of Meetings... Waiver of Notice..... Place of Meetings.... Teleconferencing..... Minutes of Meetings.. QUOTUMs co isas s tees & oa8 O Manner of Acting..... 1 Open Meetings........ NNN UI oe © © © © we eo ew ow rPRrRWODNINHMNS&WNEHE COMMITTEES... cee eeceeveceee 6.1 Designation.......... 6.2 POWETS.cccccccccccece 6.3 ee ee ee ee ew ew eee ewer nee eee eee eee ere reece Ce ee ee oe © © © eo ew ow TErM. ccccccccccccccccccscce OFFICERS... ccccccccccsccccccccece NuUMb@E . cc ccc cccccccccccccs Election and Term of Office. ee ereeeee . coerce reee . VACANCLES « oie:e vices oisiele.s eis © wire wicieie 7.1 7.2 7.3 ROMOVAL «10 « siesie ois e160 viclicio:s visiele © siniee sissies » 7.4 7.5 Separation of the Office of Treasurer from that of Permanent Secretary... Chairman... .ccccccccccccesecsccccccces 7.6 Vat Vice Chairman... cccccccccccccccccsccces 7.8 Secretary/TreaSurer. cscs eccccccccccees . . . . ee ee oe oe we INDEMNIFICATION... cccccccccecceccccevccssesces oe ee > ul WONDNDANAAKNHUNMNUNM 11 11 ll 11 12 12 12 12 12 12 L3 13 13 15 10. ll. 12. 13. 14. TABLE OF CONTENTS (continued) ANNUAL BUDGETS AND DETERMINATION OF RATES....... 9.1 Budget Process Prior to Project COMPLECLON. cc rccccccvcccvsccccesccvee ss 9.2 Budget Process Following Project COMPLECLION... ce eeecceccesevevecscscsees 9.3 Auditing Standards and Procedures......... 9.4 Standards for Capital Asset Acquisition ANd ACCOUNTING... cccrcrcescvcvesesccces COMMITTEE FUNDS AND ASSETS.....-ceceeveee eeccece 10.1 Required Funds....cccccssccsscccsccccvvves PROJECT INSURANCE... cece rcrecccserecevesecceces L1L.1 Coverage LIMLES owe o wwe o wicicie e wisieie 0. einieie sisisie 11.2 Self-Insurance...ccccccccccsccccscsesecves 11.3 Insurance Claim Proceeds... ...ceeeeeeseee 11.4 Annual REView.... ccc eececr ec eccrececvevees PROCEDURES FOR DISPUTE RESOLUTION.........2..08- 12.1 Procedural RuleS... ccc cecerccccrevevcvece 12.2 AULNOTity..cccccccccrccervcvesevesccessees 12.3 Judicial Review...cccccccsccccecccccsccsces 12.4 ALbitTatlon. cwccccccsccevveveccccvcsevesss 12.5 Costs of Arbitration.......cceeccccccccees REIMBURSEMENT OF TRAVEL AND PER DIEM EXPENSES... 13.1 13.2 Committee MEEtingS...cceceeceecvcccccsvees Special Purpose Committee Meetings........ OTHER POLICIES... cc eccececccccesceccccccccccsecs 14.1 14.2 14.3 Numbering of Resolutions.......ccceeeeeees Definition Of TermS....cccccccccccrccccecs Amendment of BylawS....cecccccccccccccesecs ii 16 16 16 17 18 19 19 20 20 20 20 20 21 21 21 21 21 21 22 22 22 23 23 23 23 BYLAWS OF BRADLEY PROJECT MANAGEMENT COMMITTEE ARTICLE 1 STATEMENT OF OBJECTIVES The Project Management Committee (the "Committee") shall be responsible for the management, operation, maintenance, and improvement of the Bradley Lake Project (the "Project"), subject to the non-delegable duties of the Alaska Power Authority (the "“Authority"). All Committee members have a substantial long-term interest in the Project. The responsibilities of the Committee evolve in accordance with the Authority's ownership of the Project, and the Purchaser's obligations to pay the Project's annual costs and right to use the Project's power production. These Bylaws set forth the procedural rules of the Bradley Project Management Committee established pursuant to the Bradley Lake Power Sales Agreement and policies adopted by the Committee. RDANT EV DONTOOM MAMACEMONM COMmuMTTTOLY AvVT ALC 41N1a~ae8Q\ ARTICLE 2 AUTHORITY OF BRADLEY PROJECT MANAGEMENT COMMITTEE The Bradley Project Management Committee exists and operates pursuant to the terms of the Bradley Lake Hydroelectric Project Agreement for the Sale and Purchase of Electric Power ("Power Sales Agreement" or "“Agreement"). BRADLEY PROJECT MANAGEMENT COMMITTEE BYLAWS (10-19-88) 2 ARTICLE 3 OFFICES The Committee shall have no physical office but shall have a mailing address at the Alaska Power Authority whose representative is the permanent Secretary of the Committee. RRANT.FV DDOTECT MANACEMOENT COMMTTTEE RVTAWC £1N.1A—R8A\ ARTICLE 4 REPRESENTATIVES The Committee shall consist of the Authority and the Purchasers, including as Purchasers for this purpose both Homer Electric Association, Inc. and Matanuska Electric Association, Inc., for themselves and for AEG&T as a Purchaser represented by and through these utilities. No Committee member shall obtain an additional vote through merger with, acquisition of, or assignment from any other Committee member, and AEG&T shall have no direct vote, but shall be represented by and through Homer Electric Association, Inc., and Matanuska Electric Association, Inc., each of which shall be entitled to vote as a Purchaser member for purposes of Committee procedure. Each Committee member entitled to vote shall designate one representative and one alternate representative to the Committee. Each member shall notify all other members in writing of the names, addresses and telephone numbers of its representative and designated alternate. Any member may change its designated representative or alternate representative at any time and shall promptly provide written notice of such change to the members. The alternate representative shall serve as the designated representative in the absence of the designated representative. BRADLEY PROJECT MANAGEMENT COMMITTEE BYLAWS (10-19-88) 4 ARTICLE 5 COMMITTEE MEETINGS 5.1 Annual Meeting. The annual meeting of the Bradley Project Management Committee shall be the first regular meeting of the Fiscal Year (July 1 through June 30), for the purpose of electing officers and transacting such other business as may come before the meeting. 5.2 Regular Meetings. Regular meetings shall be held at least quarterly, with the specific date and time to be determined by the Committee. 5.3 Special Meetings. Special meetings of the Bradley Project Management Committee may be called by the Chairman or by three members of the Committee at any time by so advising the Secretary of the Committee. Business at a special meeting of the Committee shall be limited to the purpose stated in the notice of such special meeting. 5.4 Notice of Meetings. Public notice shall be given by the Secretary of the Committee for all meetings of the Committee. 5.4.1 Notice of regular meetings shall be given at least five (5) days before the date of the meeting by: (a) mailing notice to all Committee members, alternates, and persons or organizations who have filed with the Committee a written request to receive notice, and (b) publishing notice once in the designated newspaper of the Committee. 5.4.2 A notice of a meeting shall include the date, time and place of the meeting, and if the meeting is by teleconferencing, the location of a teleconferencing facility that is equipped with a speaker-telephone or similar listening device. 5.4.3 Written notice of special meetings shall be given, as reasonable, before the time specified for such meeting. Such notice of special meetings shall state the purpose or purposes for which the meeting is called. Business at a special meeting shall be limited to the purposes stated in the notice of such special meeting. 5.4.4 It is the intent of the Committee to give the best notice possible to the public of all its transactions, but the inadvertent failure to accomplish any RRANTI.FV DRO.TECT MANAGEMENT COMMTTTER RVT.AWS £1N-19-R8) 5 one of the notice requirements shall not invalidate any action of the Committee. 5.4.5 The designated newspaper of the Committee is The Anchorage Times or the Anchorage Daily News. 5.5 Waiver of Notice. Whenever any notice is required to be given to any member a waiver of the notice in writing, signed by the person or persons entitled to such notice, whether before or after the time stated in the notice, shall be deemed equivalent to the giving of such notice. 5.6 Place of Meetings. The Chairman of the Committee may designate any place as the place of meeting for any annual, regular or special meeting of the Committee. 5.7 Teleconferencing. Attendance and participation by any or all representatives of the members at any meeting of the Committee may be by teleconference. The votes at a meeting held by teleconference shall be taken by roll call. Materials that are to be considered at a meeting that is by teleconference shall be made available at the teleconference locations. Participation by such means shall constitute presence in person at a meeting. 5.8 Minutes of Meetings. Written minutes shall be kept for all regular and special meetings of the Commit- tee. Minutes of Committee meetings shall be mailed to each member following each meeting. The official copy of each minutes shall be signed by the Chairman and the Secretary. 5.9 Quorum. At all meetings of the Committee, the presence of the representatives of any five members - shall constitute a quorum for the transaction of business, except as otherwise provided in the Power Sales Agreement. 5.10 Manner of Acting. 5.10.1 Committee actions may be taken by any reasonable voting method, provided that any member may request a public roll call vote. All actions taken via teleconferencing shall be by roll call vote. 5.10.2 Except for those matters which expressly require alternative voting procedures, the act of a majority of votes taken during a meeting at any time when a quorum is present, shall be an act of the Committee, and binding on the members. 5.10.3 A representative who is present at a meeting of the Committee at which action on a Committee Matter is taken shall be presumed to have assented to such PNANT EV AAATOAM waAMACOUPAIM CAMMTMMOD BVT AUC 41A—-10—-aaQ\ mnanr action unless the representative's dissent is both indicated and recorded at the time of the action. 5.10.4 The following matters shall require the affirmative vote of at least four representatives of the Purchasers whose percentage shares of Project capacity are greater than 51%. Such matters do not require action by the Authority. 1. Adopting of procedures for scheduling, production and dispatch of Project power. 2s Selection among alternative methods that do not involve the Authority for funding Required Project Work. 30 Establishment of procedures for the use of each Purchaser's Water Allocation, except that the Authority's affirmative vote shall be required for any water allocation decision which affects performance of the Authority's obligation under its FERC license. 5.10.5 The following matters shall require the affirmative vote of at least four representatives of the Purchasers, whose percentage shares of Project capacity are greater than 51% plus the affirmative vote of the representative of the Authority. Lie Arrange for the operation and maintenance of the Project. 2. Adoption of budget of Annual Project Costs. 3. Establish for each Fiscal Year the estimated Annual Payment Obligation of each Purchaser, together with a schedule for each Purchaser of equal monthly payments that such Purchaser shall be required to make during that year. 4. Determine after the conclusion of each fiscal year the actual Annual Project Costs. 5. Evaluation of necessity for and scheduling of Required Project Work. 6. Determine the appropriate amount of and obtain insurance for or related to the Project. RY RRA THAM WAAR RIM AAMT AE 41A_14_aaQ\ 7. Adoption of additional minimum funding amounts for the Renewal and Contingency Reserve Fund above that required by the Bond Resolution. 8. Selection among alternative methods that involve the Authority for funding Required Project Work. 9. Adoption or amendment of procedural rules of the Committee except for procedures for dispute resolution which shall be adopted or amended by unanimous agreement. 10. Adoption of maintenance schedules for the Project. 11. If and when no Bonds are outstanding, determination of rules, procedures and accounts necessary to manage the Project. 12. Evaluation and approval of Optional Project Work and the compensation for such work. 13. Application of insurance claims proceeds not governed by the bond resolution. 14. Approval of procedures and any individual utility agreements relating to electric power reserves for the Project in accordance with Section 5 of the Power Sales Agreement. 15. The approval (including possible pre- approval) of consultants. 5.10.6 In the following matters, the unanimous concurrence of all Committee members shall be necessary for an action to be taken: (a) Adoption of procedures for dispute resolution. 5.10.7 Certain matters shall require a majority of Committee votes, with each Member receiving an equal vote (including the Authority): (a) Election of officers. 5.10.8 Conduct of Meetings. Robert Rules of Order shall govern the conduct of Committee meetings except where in conflict with specific procedural rules adopted by the Committee. 5.11 Open Meetings. The Committee has determined that Alaska public policy favors openness and public access and the Committee desires to conduct its business in public in accordance with the following policies: 5.11.1 The committee recognizes that meetings between the Authority and public utilities concerning a wholesale agreement for the sale of power or other matter exempted from review under AS 42.05.43l(c) (which are contracts for wheeling, storage, regeneration or wholesale repurchase of power between the Authority and public utilities entered into between October 31, 1987 and January 1, 1988), are required to be open to the public under AS 42.05.431(d) and 44.62.310. 5.11.2 All formal meetings of the Committee and its special purpose committees shall be open to the public except as otherwise provided in these Bylaws. 5.11.3 Executive Sessions. If any subjects to be discussed at a meeting are subjects that may potentially be discussed in an executive session, the meeting shall first be convened as a regular or special meeting and the question of holding an executive session to discuss matters that come within the exceptions contained in Section 5.11.4 of this rule shall be determined by a majority vote of the Committee. No subjects may be considered at the executive session except those mentioned in the motion calling for the executive session unless auxiliary to the main question. Formal action may not be taken during the executive session. Only members of the Committee, designated alternates, and attorneys for members of the Committee may attend an executive session, unless the motion calling for the executive session specifies other persons whom the Committee wishes to attend. 5.11.4 The following excepted subjects may be discussed in an executive session: is Matters the immediate knowledge of which would clearly have an adverse effect upon the finances of the Authority or the Project. 2. Subjects that tend to prejudice the reputation and character of any person; provided, however, the person may request a public discussion; RRANT.FY PROTECT MANAGEMENT COMMTTTER RYLAWS £1N-1Q0-RR2) Matters which by law, municipal charter or ordinance are required to be confidential. Matters discussed with an attorney for the Committee or a member of the Committee, the immediate knowledge of which could have an adverse effect on the legal position of the Committee or the Authority. 5.11.5 Sections 5.11.2, 5.11.3, 5.11.4 and 5.11.5 shall not apply to: 1. 2. Meetings at which a quorum is not present; Informal discussions, by telephone or otherwise, among members of the Committee, at which votes are not taken and official business is not conducted; or Meetings and discussions, formal or informal, of Committee members in which all participants indicate they are acting individually as representatives of the Parties to the Agreement and not as the assembled Committee, and at which no Committee business is conducted and no votes are taken. BRADLEY PROJECT MANAGEMENT COMMITTEE BYLAWS (10-19-88) 10 ARTICLE 6 COMMITTEES 6.1 Designation. The Committee may appoint special purpose committees from time to time, subject to such conditions as may be prescribed by the Committee. The designation of any such committee shall not relieve the Committee or any member of the Committee of any responsi- bility imposed by law or the Agreement. 6.2 Powers. The Committee may not delegate its decision-making duties to any special purpose committees. 6.3 Term. The members of each special purpose committee shall serve from the date of appointment until the date of the next annual meeting of the Committee. RRANI.EY PROTECT MANAGEMENT COMMITTEE BYLAWS (10-19-88) 11 ARTICLE 7 OFFICERS Tal Number. The officers of the Committee shall initially consist of a Chairman, a Vice Chairman, and a Secretary/Treasurer. Under subsection 7.5., below, the Committee may later decide to separate the offices of Secretary and Treasurer. The offices of Chairman and Secretary shall not be held by the same person. The Committee may elect such other officers and agents as it shall deem necessary, who shall hold office for such terms and shall exercise such powers and perform such duties as shall be determined from time to time by the Committee. The Committee may, by separate resolution, provide for the indemnification of its officers, members and the members of any special purpose committees appointed by the Committee. 7.2 Election and Term of Office. Initially only the Chairman and Vice Chairman shall be elected by the Committee at its annual meeting. The Authority representative shall be the permanent Secretary/Treasurer. In the event that the office of Treasurer is separated from that of Secretary under the provisions of 7.5., below, the Treasurer will become an annually elected officer, while the Authority representative will retain the position of permanent Secretary. Only Committee members or alternates shall be eligible to serve as officers. Each officer shall hold office until a successor is elected and accepts office unless the officer resigns or is removed by the Committee. Lod Removal. Any officer elected by the Committee may be removed upon the vote of five members of the Committee. 7.4 Vacancies. In the event any vacancy occurs in any elected office of the Committee, the remaining members of the Committee shall elect a successor to the office at the next regular meeting of the Committee. 7.5 Separation of the Office of Treasurer from that of Permanent Secretary. Upon the vote of a majority of the Committee members (unweighted for percentage share), the offices of Secretary and Treasurer shall be separated, and an election held to fill the Treasurer's office until the next regular election of officers. Upon separation of those offices, the Treasurer shall become an annually elected office, retaining only the "Treasurer duties" of 7.8.2. Upon separation of these officers, the representative of the RPRANT.FY PROTECT MANAGEMENT COMMTTTER RYLAWS (10-19-88) 12 Authority will remain the permanent Secretary, retaining only the "Secretary duties" of 7.8.1. 7.6 Chairman. The Chairman shall preside at all meetings of the Committee and shall perform such other duties and have such other powers as the Committee may pre- scribe, subject to the limitations set forth in the Power Sales Agreement. Tet Vice Chairman. The Vice Chairman shall act under the direction of the Chairman, and in the absence or disa- bility of the Chairman or if the office of the Chairman is vacant, shall perform the duties of the Chairman, and from time to time shall perform such other duties and have such other powers as the Chairman or Committee may prescribe, subject to the limitations set forth in the Agreement. 7.8 Secretary/Treasurer. The following duties will be assigned to the Secretary/Treasurer until such time that the Committee determines they should be separated under the provisions of 7.5., at which time the Secretary will retain only the Secretary Duties and the Treasurer shall retain only the Treasurer Duties. 7.8.1 Secretary Duties The Secretary/Treasurer shall act under the direction of the Chairman in regards to secretarial duties. Subject to the direction of the Chairman or the Committee, the Secretary/Treasurer shall attend all meetings of the Committee and keep a record of the proceedings. In the Secretary/Treasurer's absence, the Chairman shall designate another member of the Committee to keep a record of the proceedings. The Secretary/Treasurer shall perform like duties for committees when required. The Secretary/Treasurer shall give or cause to be given notice of all meetings of the Committee and special meetings of the Committee and shall perform such other duties as may be prescribed by the Chairman or the Committee. The Secretary/Treasurer may incur reasonable expenses associated with keeping a record of the proceedings, including the compensation and travel costs incurred to retain a person to keep such records. 7.8.2 Treasurer Duties. The Secretary/Treasurer shall act under the direction of the Committee in regards to Treasurer duties. Subject to the direction of the Committee, the Secretary/Treasurer shall have control of the Committee funds and securities and shall keep full and accurate accounts of receipts and disbursements in books belonging to the Committee, and shall immediately deposit all monies and other valuable effects in the name and to the credit of the Committee in such depositories as may be designated by the Committee. The Secretary/Treasurer shall Reman ee RRA eR Am sett em AA mm mur Ania sana aA aan disburse the funds of the Committee as may be ordered by the Committee, taking proper vouchers for such disbursements, and shall render to the Chairman and the Committee at its regular meetings or when the Committee so requires, an account of all the Secretary/Treasurer's transactions as Secretary/Treasurer and of the financial condition of the Committee. The Committee shall secure a bond in an adequate amount to cover the actions of the Secretary/Treasurer. BRADLEY PROJECT MANAGEMENT COMMITTEE BYLAWS (10-19-88) 14 ARTICLE 8 INDEMNIFICATION To the extent legally permitted and financially able to do so from Committee-controlled assets, the Committee shall indemnify and hold its Committee members and officers harmless against all claims and liabilities which they or any of them incur as a party defendant to any proceeding (other than a proceeding filed by or in the right of the Committee), based on any authorized action of any such per- son as a Committee member or as an officer of the Committee within the scope of the Committee member's office. For purposes of this provision, "Committee member" means a Committee representative, an alternate Committee representa- tive, an authorized agent of the Committee who is otherwise employed by the Committee, the Purchasers or any authorized employee of the Committee. BDANT EV DADATOOCM MANACOMONM COmuTTTOO AVT AWC £1N1A-aaQ\, 16 ARTICLE 9 ANNUAL BUDGETS AND DETERMINATION OF RATES 9.1 Budget Process Prior to Project Completion. 9.1.1 Prior to Project completion, the Power Sales Agreement does not require any "budget process." The Purchasers determine what expenses to incur and how to fund them (the Authority is not a party to these decisions or payment obligations). The only Committee expenses during this period will be those related to Committee activity or costs incurred by individual Purchasers and agreed to be shared by other Committee members. No Authority costs will be eligible for utility payment during this period, nor will the Authority have any obligation to share in the payment of Committee expenses. 9.2 Budget Process Following Project Completion. The Agreement and Bond Resolution provides for a formal budget process following completion of the Project. Prior to Project completion and the sale of Project bonds, the Committee shall adopt a detailed budget process. 9.2.1 The annual budget shall include: l. Amounts required for debt service on any outstanding bonds; 2. Amounts required for reserve funds created by bond resolution; 3. Costs of producing and delivering power including: (a) O&M, (b) Insurance, (c) Authority's Project specific administrative and general costs, (d) Costs of Committee, (e) Any individual utility cost to be reimbursed by the Committee, and (£) Any other cost approved by the Committee. 4. The budget may, in the future, include amounts for non-bond funding of additional BRADLEY PROJECT MANAGEMENT COMMITTEE BYLAWS (10-19-88) 16 Project work, as well as Excess Payments following final payment of all bonds. She The annual budget shall be based on a 12- month period starting July lst of a calendar year through and including June 30 of the succeeding calendar year. 9.2.2 For purposes of 9.2.1(3): l. The Authority shall provide annual budget detail listing personnel requirements by work function, their gross payroll, payroll burdens and the estimated percentage of each work function to be required for operation and maintenance. The estimated costs for materials, supplies, engineering and other costs shall be provided in sufficient detail to allow the Committee a reasonable basis to analyze the budget in the approval process and to provide a basis for the annual audit of actual costs. 2. The Authority shall provide annual budgets detailing the estimated costs relating to FERC license requirements and property insurance and the Project specific administrative and general costs and to be paid to the APA. 9.3 Auditing Standards and Procedures. 9.3.1 An annual audit shall be performed by qualified independent auditors selected by the Committee, to be completed on or before the first day of December of each year. 9.3.2 The primary purpose of the audit is to verify expenses. The scope of the audit shall include the operating and maintenance costs relating to the Facilities, the annual Project-specific costs of the APA, and the APA and Committee assets, liabilities and costs including all funds administered by the APA and the Committee, necessary to establish a true-up of the annual Project cost. 9.3.3 The annual financial statements shall disclose the comparison of actual operating results to the annual budget. 9.3.4 The members shall make available to the auditors such records and schedules required in their RRANI.FY PROTECT MANAGEMENT COMMITTEE BYLAWS (10-19-88) Li examination of the financial statements in a timely manner. 9.4 Standards for Capital Asset Acquisition and Accounting. To provide for a comprehensive, consistent policy of ownership and control, the Committee has designated the APA as owner of all capital assets which benefit the Project while retaining the right to control all capital assets associated with the Project. 9.4.1 Capital assets include an asset acquired for the benefit of the Project that has a value of $500 or more, a useful life of at least one year, and substantially comprises a Retirement Unit as listed in the Federal Energy Regulatory Commission List of Retirement Units, as amended from time to time. 9.4.2 The Committee shall transfer ownership of any assets held in trust for the Project to the APA. 9.4.3 The Committee will have control and Management of all capital assets purchased with the state or utility funds, and the Committee shall manage all proceeds derived from sales upon retirement of these capital assets and to purchase additional capital assets for the benefit of the Project. 9.4.4 To the extent that purchase costs can be minimized through the State of Alaska's purchasing power, the APA may make purchases on behalf of the Committee as the "Purchasing Agent". To the extent other purchasing alternatives are preferable, the Committee may use those procedures. The Committee is under no obligation to follow the State Procurement Code for acquisitions with any of the funds. BRADLEY PROJECT MANAGEMENT COMMITTEE BYLAWS (10-19-88) 18 ARTICLE 10 COMMITTEE FUNDS AND ASSETS 10.1 Required Funds. The following funds are required to be established by the Bond Resolution: Construction Fund Debt Service Fund, consisting of an Interest Account and a Principal Account Capital Reserve Fund Renewal and Contingency Reserve Fund Excess Investment Earnings Fund Revenue Fund Operating Fund Revolving Construction Fund BRADLEY PROJECT MANAGEMENT COMMITTEE BYLAWS (10-19-88) 19 ARTICLE 11 PROJECT INSURANCE 11.1 Coverage Limits. Insurance shall be secured and maintained in types and amounts as are "customary" for facilities of similar types and sizes as the Project. The initial determination of "customary insurance" shall be made by the Committee in concert with the insurance consultant employed by the Authority. 11.2 Self-Insurance. The amounts and types of insurance determined "customary," including the minimum amounts required in the Bond Resolution, may be maintained through self-funded insurance methods. 11.3 Insurance Claim Proceeds. Disposition of insurance claim proceeds for damage or destruction of the physical facilities is governed by Section 715 of the Bond Resolution. Application of any other insurance proceeds accruing to the Project shall be determined by the Committee. 11.4 Annual Review. The Authority and the Committee together shall review annually the insurance types and amounts carried with respect to the Project. BRADLEY PROJECT MANAGEMENT COMMITTEE BYLAWS (10-19-88) 20 ARTICLE 12 PROCEDURES FOR DISPUTE RESOLUTION 12.1 Procedural Rules. The Project Management Committee shall perform its decision-making responsibilities consistent with the Power Sales Agreement and any duly adopted procedural rules. 12.2 Authority. In the event the authority of the Committee to act is at issue, the Committee shall first make a finding as to its authority. If the Committee determines that it has authority to consider the matter, it shall decide the issue on its merits. If the Committee determines that it does not have authority to consider the matter, the Matter will be subject to immediate judicial resolution. If the court determines that the Committee in fact had author- ity to consider the matter, the matter shall be remanded for Committee action. 12.3. Judicial Review. Any action, or failure to act, of the Committee shall be subject to judicial review. The reviewing court shall (a) set aside any Committee action found to be arbitrary, capricious or otherwise not in accordance with law or with the terms of the Agreement, and (b) order the Committee to take action if such action has been unreasonably withheld or delayed. Failure of any party to appeal any Committee decision shall not constitute a waiver of the right to appeal any future decision. Judicial review shall be governed by the laws of the State of Alaska and shall be filed in the Alaska Court System. 12.4 Arbitration. Upon agreement of the Committee representatives of the Authority and any three utilities, the Committee may refer any matter within the Committee's authority to arbitration. Unless otherwise unanimously agreed to by the members of the Committee, arbitration shall be conducted before an arbitrator selected under the guide- lines of the American Arbitration Association and the arbi- tration shall be conducted in accordance with the commercial arbitration rules of the American Arbitration Association then in effect. In addition, the arbitrator must have edu- cation and experience in the particular matter being arbi- trated. The arbitrator shall have no authority, power or jurisdiction to alter, amend, change, modify, add to or delete any of the provisions of the Agreement and the decision of the arbitrator shall be subject to judicial review as a Committee decision, in accordance with Section 12.3, above. 12.5 Costs of Arbitration. The costs incurred in connection with the arbitration shall be apportioned by the arbitrator as she or he deems appropriate. BRADLEY PROJECT MANAGEMENT COMMITTEE BYLAWS (10-19-88) ZL ARTICLE 13 REIMBURSEMENT OF TRAVEL AND PER DIEM EXPENSES 13.1 Committee Meetings. The Committee has established a policy for reimbursing the cost of travel and per diem expenses with respect to attendance at meetings of the Committee as follows: 13.1.1 Each party shall be reimbursed for the cost of travel and per diem necessary for its representative and alternate to attend meetings of the Committee, subject to the following policy: (a) Travel must be by the most direct route and will be reimbursed based on actual ground transportation, agreed upon mileage, or standard airfare. Total travel costs shall not exceed a maximum amount determined by airline coach fare. (b) Reimbursement of actual costs exclusive of transportation costs will not exceed $150.00 per day for a maximum of two days' travel and actual meeting days for each duly convened meeting of the Committee. 13.1.2 Application must be made to the Secretary of the Committee for reimbursement. 13.2 Special Purpose Committee Meetings. The Committee has established a policy for reimbursing the cost of travel and per diem expenses with respect to attendance at meetings of the special purpose committees as follows: 13.2.1 Each Special Purpose Committee Member shall be reimbursed for the cost of travel and per diem necessary to attend special purpose committees created by the Project Management Committee, subject to the following policy: (a) Travel must be by the most direct route and will be reimbursed based on actual ground transportation, agreed upon mileage, or standard airfare. Travel costs shall not exceed a maximum amount determined by airline coach fare. (b) Reimbursement of actual costs exclusive of transportation costs will not exceed $150.00 per day for a maximum of two days' travel and actual meeting days of the special purpose committee. 13.2.2 Application must be made to the Secretary of the Committee for reimbursement. BRADLEY PROJECT MANAGEMENT COMMITTEE BYLAWS (10-19-88) 22 ARTICLE 14 OTHER POLICIES 14.1 Numbering of Resolutions. The Committee has established that all resolutions and actions adopted by the Committee shall be assigned a number. The first part of the number shall be the last two digits of the year in which the resolution or action is adopted (e.g., Resolution No. 88-___). The second part shall be a sequential number reflecting the order in which the resolution or action was adopted, beginning with the number "1," and increasing by one with the adoption of each subsequent resolution or action. The Secretary of the Committee shall establish and Maintain an official journal for recording resolutions [and actions] of the Committee. 14.2 Definition of Terms. Except as otherwise provided, terms included in these Bylaws shall take the meaning specified in the Power Sales Agreement. 14.3 Amendment of Bylaws. These Bylaws may be altered, amended, or repealed and new Bylaws may be adopted by the Bradley Project Management Committee at any regular or special meeting, subject to the voting requirements set out in Article 5.10 of these Bylaws. BRADLEY PROJECT MANAGEMENT COMMITTEE BYLAWS (10-19-88) 23