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BPMC Meeting- April 02 1996 2
480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 w wn 6. 10. 11. 12. i ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY /B ALASKA @@E =ENERGY AUTHORITY FAX 907 / 269-3044 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA Tuesday, April 2, 1996 - 10:00 a.m. Anchorage Municipal Light & Power Commission Room - 1200 East Ist Avenue CALL TO ORDER ROLL CALL PUBLIC COMMENT AGENDA COMMENTS APPROVAL OF MEETING MINUTES - February 13, 1996 “7 ¥ BUDGET SUBCOMMITTEE REPORT(- Danni Great f€¥ OPERATION AND DISPATCH SUBCOMMITTEE REPORT A Construction Funding Sources »~ B. Construction List - Consideration and Action » INSURANCE SUBCOMMITTEE — OLD BUSINESS A. Spinning Reserves Update B. Agreements Status Te ZA €——Meose Mitigation, a242*— NEW BUSINESS A. Approval of Legal Expenses & other Expenses ,~ COMMITTEE COMMENTS A. Next Meeting Date ADJOURNMENT h:all\eva\bradley\agenda os Stahr Pease Sieczkowski McCrohan Sieczkowski Beardsley Lovas Beardsley/Saxton Beardsley —Byormstad-C'2 Stahr ov ; ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY =, ALASKA @@E =SEENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA Tuesday, April 2, 1996 - 10:00 a.m. Anchorage Municipal Light & Power Commission Room - 1200 East Ist Avenue 1. CALL TO ORDER Stahr 2: ROLL CALL PUBLIC COMMENT we 4. AGENDA COMMENTS wn APPROVAL OF MEETING MINUTES - February 13, 1996 6. BUDGET SUBCOMMITTEE REPORT Pease ¥ OPERATION AND DISPATCH SUBCOMMITTEE REPORT Sieczkowski A. Construction Funding Sources McCrohan B. Construction List - Consideration and Action Sieczkowski 8. INSURANCE SUBCOMMITTEE Beardsley 9. OLD BUSINESS A. Spinning Reserves Update Lovas B. Agreements Status Beardsley/Saxton Cc Moose Mitigation Beardsley 10. NEW BUSINESS A. Approval of Legal Expenses & other Expenses Bjornstad ibite COMMITTEE COMMENTS A. Next Meeting Date Stahr 12: ADJOURNMENT h:all\eva\bradley\agenda Bradley Lake PROJECT MANAGEMENT COMMITTEE MEETING lil a Lie FOE PF peesaets| Poeen (Location) PLEASE SIGN IN z ° REPRESENTING EA ‘Oo |0o = iS _ —_ > — N Tee aes zr at wW 14 A/ Heobodies Oyden f he hue 15 Row SAxDHN Reh AA Lec, 16 | Mike daly Gu 7| Bra Gr. CE4 is | Gever PA GUEA 19 | Dew " Beaels ery NEA 20 21 | Fucene ® jovns+ C LA 22 | “tad Eve nVER 92Q2\IT9884 Agenda Item No. BRADLEY PMC VOTING eet 1 DATE: #71 D oll Call Cel List Motign at aes ive) |p| as al ae? | | ee CITY OF SEWARD 01% mi VI aa Y/MATANUSKA ELEC ASSOC 14% (7 71 mr CHUGACH ELEC ASSOC Fes | eA v | c¢’ HOMER ELEC ASSOC 12% EAll VT eT / GOLDEN VAL ELEC ASSOC 17% 7 T an wt “MUNI LIGHT & POWER 26% [ZT] iY 77 V ALASKA ENERGY AUTHORITY at “al VA A=4+ OVER 51% B = AEA CONCUR With A C = UNANIMOUS D = MAJORITY VOTING METHOD A: Requiring four yeas with 51% of utilities, with no AEA vote: 1) Procedures for scheduling, production and dispatch of project power. 2) Establishment of procedures for use of each purchaser's water allocation (AEA assent required for license requirements). 3) Selection among alternative methods that do not involve AEA for funding required project work. VOTING METHOD B: Requiring 4 yeas with 51% of utilities and AEA concurrence: 1) Arranging operation and maintenance of project. 2) Adoption of budget of annual project costs. VOTE(93Q3/BC5272) 3) 4) 5) 6) 7) 8) 9) Establishment of FY estimated annual payment obligation and schedule of each purchaser. Determination of annual project costs after each FY. Evaluation of necessity for and scheduling of required project work. Determination of appropriate amount of insurance. Adoption of additional minimum funding amounts for renewal and contingency reserve fund above that required by bond resolution. Selection among alternate methods that involve AEA for funding required project work. Adoption or amendment of procedural committee rules (except dispute resolution). 10) Adoption of project maintenance schedules. 11) 12) 13) 14) 15) Determination of rules, procedures and accounts necessary to manage project when no bonds outstanding. Evaluation and approval of optional project work and compensation for such work. Application of insurance claims proceeds not governed by bond resolution. Approval of procedures and any individual utility agreements relating to electric power reserves for project. Approval of consultants. VOTING METHOD C: Unanimous vote by all (including AEA) VOTING METHOD D: Majority vote (including AEA) Election of Officers #10600 ALAS 0709 8.85. AFFIDAVIT OF PUBLICATION STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT. ) Eva M. Kaufmann being first duly sworn on oath deposes and says that he/she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on 3/26, 1996 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged _ private individuals. si ened ASC 3 Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMM: ION EXPIRES ALASKA ENERGY AUTHORITY/ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY Public Notice Bradley Lake Project Management Committee, Notice is hereby given that the Bradley Lake Project Monage- ment Committee will hold o regular meeting to conduct the offairs of the Committee at the Anchorage’ Municipol Light & Power offices,1200—Eost Ist Avenue, Anchorage, Alaska. This meeting will commence at 10:00 A.Mcon Tuesday, April 2, 1996. For. additional informo- tion, contact ThomosR. Stohr, Chairman, ‘Anchorage Munici- pal Light & Power,'1200 Eost Ist Avenue, Anchorage, Alaska 99501. The State of Alaska (AIDEA), complies with Title I! of the © Americans” with Disabilities Act of 1990. Disablec persons requiring special modifications to participate should contact AIDEA stoff ot (907) 269-3000 to. moke speciol arrangements. - ~~ Alaska Energy Authority Project Management {Committee -.~ | Pub.: March 26, 1996 ' ALASKA ENERGY AUTHORITY/ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY Public Notice Bradley Lake Project Management Committee Notice is hereby given that the Bradley Lake Project Management Committee will hold a regular meeting to conduct the affairs of the Committee at the Anchorage Municipal Light & Power offices, 1200 East 1st Avenue, Anchorage, Alaska. This meeting will commence at 10:00 A.M., on Tuesday, April 2, 1996. For additional information, contact Thomas R. Stahr, Chairman, Anchorage Municipal Light & Power, 1200 East 1st Avenue, Anchorage Alaska 99501. The State of Alaska (AIDEA), complies with Title Il of the Americans with Disabilities Act of 1990. Disabled persons requiring special modifications to participate should contact AIDEA staff at (907) 269-3000 to make special arrangements. /s/ Alaska Energy Authority Project Management Committee Publish: Tuesday, March 26, 1996 hzall\eva\bradley\bladvtzg, BRADLEY PMC VOTING DATE: Agenda Item No. ae ATE Bll Call — Const Lict Metion ves a0 vs yO ABs YES ,NO ABS CITY OF SEWARD 01% L [ 71 MATANUSKA ELEC ASSOC 14% rae Al CHUGACH ELEC ASSOC 30% Meo 7] VA HOMER ELEC ASSOC 12% yO 5 vO GOLDEN VAL ELEC ASSOC 17% ae BS 71 MUNI LIGHT & POWER 26% Ee] moro 7 ] ALASKA ENERGY AUTHORITY PE ZT 3] VA A=4+ OVER 51% B = AEA CONCUR With A C = UNANIMOUS D= MAJORITY VOTING METHOD A: Requiring four yeas with 51% of utilities, with no AEA vote: 1) Procedures for scheduling, production and dispatch of project power. 2) Establishment of procedures for use of each purchaser's water allocation (AEA assent required for license requirements). 3) Selection among alternative methods that do not involve AEA for funding required project work. VOTING METHOD B: Requiring 4 yeas with 51% of utilities and AEA concurrence: 1) Arranging operation and maintenance of project. 2) Adoption of budget of annual project costs. VOTE(93Q3/BC5272) 3) Establishment of FY estimated annual payment obligation and schedule of each purchaser. 4) Determination of annual project costs after each FY. 5) Evaluation of necessity for and scheduling of required project work. 6) Determination of appropriate amount of insurance. 7) Adoption of additional minimum funding amounts for renewal and contingency reserve fund above that required by bond resolution. 8) Selection among alternate methods that involve AEA for funding required project work. 9) Adoption or amendment of procedural committee rules (except dispute resolution). 10) Adoption of project maintenance schedules. 11) Determination of rules, procedures and accounts necessary to manage project when no bonds outstanding. 12) Evaluation and approval of optional project work and compensation for such work. 13) Application of insurance claims proceeds not governed by bond resolution. 14) Approval of procedures and any individual utility agreements relating to electric power reserves for project. 15) Approval of consultants. VOTING METHOD C: Unanimous vote by all (including AEA) VOTING METHOD D: Majority vote (including AEA) Election of Officers ALASKA INDUSTRIAL DEVELOPMENT > ¢ AND EXPORT AUTHORITY /= ALASKA iq =ENERGY AUTHORITY —_—— 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 March 28, 1996 Thomas R. Stahr Chairman, Bradley Lake Project Management Committee Municipal Light and Power 1200 E. First Avenue Anchorage, AK 99501 Dear Tom: Enclosed is a proposed final Bradley Lake Hydroelectric Project construction list including a task description. This final construction list includes a $2,336,000 “punchlist” of projects proposed by the Operations and Dispatch Committee, $202,958 for retainage payable and estimated interest on retainage, and $60,000 for estimated administrative costs related to the oversight of the completion of the construction list items. The construction list is presented to the Bradley Lake Project Management Committee (PMC) for its review and approval. Upon approval of the final construction list by the PMC, AEA will take the following actions: 1. Remit to the State of Alaska the current balance of excess state contributions ($305,482). See attached analysis of the construction costs and contributions. 2. Obtain an opinion from bond counsel regarding the proper disposition of the excess bond contributions, currently quantified at $335,437. 3. Obtain, if required, an independent engineer's review of the final construction list to determine if all costs included on the list are appropriately categorized as costs of construction, and therefore properly payable from the construction fund. This list and engineers review will be the final documentation of construction punch list items for the Bradley project. Mr. Thomas R. Stahr March 28, 1996 Page 2 After the engineer's review of the construction list is completed, AEA will seek PMC approval for a fixed fee contract with the O&M contractor for the completion of the punchlist projects. Funds equal to the final approved O&D punchlist will be disbursed from the construction fund. After completion of the O&D punchlist, a reconciliation of the construction costs and contributions will be updated with a final disbursement of excess state contributions made to the state and a final distribution of the excess bond funds made in accordance with the bond counsel opinion (See (2) above.). Sincerely, GEM cCah— Dennis V. McCrohan, P.E. Deputy Director - Energy DVM:bjf h:\all\elaine\aea\reports\bradiley\BLCONS.doc ce: William R. Snell, Executive Director Ron Saxton, Ater Wynne Hewitt Dodson & Skerritt Ken Vassar, Wolforth, Argetsinger, Johnson & Brecht COST CATEGORY ITEM BC130 BC160 BC130 BC120 BC100 BC082 BC081 BC020 BC140 BC150 BC150 BC150 BC150 BC150 BC150 BC150 BC150 BCO90 BC150 BCO0S50 BCO11 BC010 ANON AWHN = aman wininnnga OMAN DNAWNHHO BRADLEY LAKE HYDRO PROJECT PROPOSED FINAL CONSTRUCTION LIST DESCRIPTION BRADLEY RIVER SALMON STUDY CONTRACT FISH WATER RELEASE SCADA MODIFICATIONS MOOSE MITIGATION FUND DIVERSION PORTAL TUNNEL LEAKAGE POWERHOUSE FLOOR STATIC VAR COMPENSATOR SPARES EQUIPMENT MISC PROJECT ENGINEERING FISHWATER BYPASS DEBRIS REMOVAL ADIT ACCESS MODIFICATION BUILDINGS ROOF MODIFICATION AIRFIELD ROAD ACCESS COLD WEATHER MODIFICATIONS RIP RAP UPSTREAM FACE OF LEFT DAM ABUT. APPROVED WORK ORDERS PENSTOCK CONDENSATION GOVERNOR SPEED CONTROL MODIFICATION SYSTEM ANALYSIS EQUIPMENT CONTINGENCY @ 10% O & D Committee Estimate (2/9/96) Brown & Root retainage due Interest due on Brown & Root retainage Administrative costs (estimated thru 6/30/98) h:all\elaine\aea\BLCONST.XLS ESTIMATE 290,000 200,000 200,000 50,000 125,000 175,000 30,000 50,000 100,000 25,000 100,000 95,000 30,000 175,000 154,000 25,000 50,000 250,000 212,000 2,336,000 102,958 100,000 60,000 2,598,958 3/27/96 BRADLEY LAKE HYDROELECTRIC PROJECT CONSTRUCTION LIST 2/9/96 The Bradley River Salmon Study Contract The Bradley River salmon study contract expired on 12/31/95. Historically fish water has been over released from the dam and the salmonoid wetted areas is unknown for the spawning areas at the minimum 40 cfs required flows at the mouth of the Bradley River. These studies intend to identify these spawning areas at the reduced flows, as well as side flow contributions, and allow investigation and conclusions for requesting a reduction of 5 to 10 cfs in the water releases through the dam from State and Federal agencies. Upon concurrence, a FERC license amendment will be requested. Potential increase in generation at a 5 to 7 cfs reduction is estimated to be approximately 10 MWH per day. At $25/MWH this equates to approximately $68,500 per year. Long term benefits can be derived if approval and a FERC Amendment is received. Estimate to complete the studies and the FERC license amendment is $290,000. Fish Water Release SCADA Modifications Instrumentation: Add an RTU on the North Fork - using a bubblier or another measuring device. Data from RTU will allow Fish Water Release Valves to respond quicker to flow changes. Thus creating a more responsive control system. A weir located in the North Fork stream to allow for an easy and accurate reading of the flow in the North Fork. A piping system for monitoring flow during freezing conditions. A weir at the Lower Bradley River to facilitate an environment that is easily monitored. SCADA: Change Snap Tables to include variables such as tides, rain and, freezing. Insert an anticipated flow feature into the existing Snap Tables. Create new Snap Tables for controlling Fish Water releases at the Lower Bradley gaging site. Estimate for providing these modifications is $200,000. Moose Mitigation Fund A moose mitigation plan is required per the FERC license. Land was purchased and the endowment for management needs to be funded. Estimate for establishing the fund is $200,000. Diversion Portal Tunnel Leakage There is about a 60 gpm leak through the cracks in the ceiling area above the penstock in the Diversion Portal when the lake is spilling. This has caused problems in the past and temporary pumps had to be installed to remove the water from the Diversion Valve area. Water levels in the Diversion Valve area have reached a height that has covered the Valve operators. Drain pipes are recommended to be installed in the Diversion Portal, from the penstock area through the area where the valves are located. This will allow water that has leaked into the penstock area to drain directly outside of the Diversion Portal, instead of draining into the area where the valves are located. Also install a drainage pump to accommodate the times when the level of the water outside the Diversion Portal is higher than what would be the elevation of the newly installed drain pipe outlets. This system will have to include check valves, a pressure switch to activate the pump, heat tracing, an outlet above the high water elevation, and a motor starter circuit. A SCADA circuit may be installed for monitoring. This will take two men an estimated 30 hours to install the piping and an estimated 15 hours to install the electrical controls. The design of the system will have to be engineered. Estimate for this modification is $50,000. Powerhouse Floor Areas of the floors in the Powerhouse were not sealed during construction and staining from oils, water, rusting pipes, and normal use are causing discoloration and damage to these areas. Water is penetrating the concrete where the concrete has cracked. The existing sealer is also cracked and water, oil, and dirt are getting into these cracks. The Powerhouse floors need to be sealed to protect them from deterioration. Sealing not only protects the floors it also looks better and is easier to keep clean. There is approximately 31,500 square feet of flooring that needs sealing. The sealing of the floors will have to be done in such a way that continuous operation of the powerhouse is not impeded. This could lengthen the amount of man-hours needed to apply the sealer. This will take an estimated 200 man-hours to complete. This will include cleaning and preparation, as well as applying sealer to the floors. Estimate for the floor sealing is $125,000 Static VAR Compensator (SVC) Spares Spares are required for the SVC systems at Daves Creek and Soldotna Substation. CEA has inventoried the existing equipment and reviewed a recommended list. Spare capacitors and electronic control boards need to be purchased. Estimate for the spares is $175,000. Equipment Portable Welding Exhaust Fan. This is a safety item that removes the noxious gas from the area where welding is being done. Aluminum Scaffolding 50 vertical feet in height will allow us to reach most places on the project. 50 Feet will allow for the opportunity of setting up two individual scaffolds for spanning an object or a gap. It will allow for a working platform for painting or performing maintenance. An eight foot Snow Plow for the front of one of the pickups will accelerate the time it takes to move the snow off the roads, when there is just a small amount to deal with. This will also cut down the run time of the Grader and the Loader. Several Pickups can be purchased for the cost of the chains and tires for the loader and grader. Estimate for equipment is $30,000. Misc. Project Engineering Changing the starting of the Emergency Generator scheme so when the Essential Bus is lost the Generator starts. Needs Engineering. Installing safety cable on the west side of the Powerhouse will allow for cleaning the windows in the Control Room. Install guard rail mechanisms around hatches above the Service Water Pumps and Fire Water Pumps. Estimate for Misc. Project Engineering is $50,000. Fish Water Bypass Debris Removal The amount of debris that is built up around the Fishwater Valve intakes is hard to assess, due to it being underwater. The debris will have to be moved away from the intake of the Fishwater Valves to prevent blocking of the intakes. 10. 11. 125 A diver will have to be brought in to inspect the conditions around the intakes. Due to very limited vision in the silted water, this will have to be done by feel. After ascertaining the amount of debris, a decision will have to be made on how best to remove the debris. The lake may be lowered to accommodate heavy equipment to get to the area or a team of divers may be brought in to move the debris. Spring of 97 appears to be a good time to do this work. This time period fits with the Utilities schedule also. Estimate for accessing the fishwater bypass intake area is $100,000. Adit Access Modification The floor area around the bottom section of the Bulkhead builds up with ice in the winter time. This creates abnormal directional forces on the end of the manifold. Building a barrier in front of the bulkhead and heating this area would alleviate these stresses on the manifold and keep the glaciating of the floor to a minimum. Power for the heater would come from the nearby transformer yard. A heater(s) of the appropriate size would have to be installed in this area and thermostats would control the heater(s). An estimated 90 man-hours would be required to complete this task. Estimate for modifying the Adit Access is $25,000. Buildings Roof Modification Roof modifications to divert the snow away from the entryways on the Shop/Warehouse, Crews Quarters, and Duplexes is a safety issue The 18 identified entrances can be inundated by the accumulation of gathered show that exists on the roof area above them. If the snow comes off the roof while someone is walking out, they may be seriously injured or crushed. The snow that slides off these roofs is in such quantity that they keep the entryways from opening and therefore an exit may be blocked. This is not acceptable in a fire condition. The “Crickets” will need to be Engineered and due to the liability and amount of time required to complete this task a contractor will have to be brought on site to do the job. Transporting the material will need to be a consideration. Estimate for Roof Modifications is $100,000. Airfield Road Access The Airport Access Road to the original construction airfield (Martin River Airstrip) will give the Air Carrier an alternative landing strip in adverse weather. The airstrip in service now is sufficient for most days, but high velocity, circling winds can cause havoc on certain occasions. The opening of the Martin River airstrip will encompass the installing of low water crossings and the hauling of road material to build up the 13. 14. 15. portion of the road removed to a single lane. An estimated 150 man-hours will be needed to complete this job. Permitting is almost complete for this project. Estimated road construction costs are $95,000. Cold Weather Modifications Long periods of below normal cold weather can have some ill effects on the Powerhouse. The intake freezing air coupled with penstock water temperatures of 32.5°F can and has caused problems in the Unit Turbine Area. The intake of the discharge chamber froze to the extent that the chamber was not vented properly and the level of the water in the discharge chamber increased to over 7.0 feet and was still rapidly climbing when it was discovered. To correct this problem, some of the air in the Powerhouse will be vented into the discharge chamber air intake piping. A flow monitor will be installed on the intakes of the discharge chambers to alarm when flow decreases. The pipes that serve as the overflow for the Clean Water Sump protrudes through the Powerhouse wall. They are susceptible to freezing with water flowing through them at 32.5°F and an ambient temperature of -5°F. Heat tracing the pipes and outlet would keep them from freezing. Estimate to make these modifications is $30,000. Rip Rap Upstream Face of Left Dam Abutment The left Abutment of the Dam on the upstream side should be Rip Rapped to prevent further erosion. High winds and lake water wave action has caused erosion of the fill material and the loss of a survey monument over the past five years. There is no safety hazard at the present time. Estimate for this effort is $175,000. Approved Work Orders 331.01 - Crickets and Dormer Engineering (BL-22-95) 332.01 - Fishwater Bypass Control Engineering (BL-21-95) Designing and implementing an improved method of controlling the Fishwater Release can save thousands of dollars. Therefore, all aspects of the Fishwater should be studied. See item 2. 333.01 - Air/Oil Separators (BL-01-94) The Fuji oil separators are not doing the job of removing the oil from the air being forced across the upper and lower guide bearing tubs. This oil mist was being carried all around the Powerhouse by the ventilation system. The oil mist was collecting on the fans, filters, and most importantly the control circuitry. It was also mixing with the carbon dust, from the Exciter Brushes, and coating the Thyristors and the internals of the Power System Stabilizers. A piping system has been installed to convey the oil mist outside. The piping system contains inline filters to remove the oil mist before the air is released outside. The effectiveness of this system is being monitored. 333.03 - Powerhouse Lockers (BL-15-95) The lockers supplied are near worthless, due to their size. They are only 6 inches wide and a rain coat pretty much fills them up. Lockers in the area of 18 inches would allow for storing items like high voltage gloves, climbing/fall restraint equipment, overalls, etc. 333.05 - Governor Improvement (BL-26-95) SWEC, PTI, and Woodword Gov. studied a specific outage and made recommendations for modifying the governor response. 334.01 - Control Circuits (BL-08-94) The Fire Protection System on the Main XFMRs has inadvertently tripped the Unit (s) twice this past year. The unit tripping has since been disabled and the alarming remains in service. The need re-engineer the operation of this system is essential if the Fire protection Circuit is going to function properly. The System that supplies cooling water to the Station Service Air Compressors is not performing adequately. The system is designed with two Fisher Flow Controllers, back to back. The first Controller reduces the water off the penstock to 250 PSI, the second Controller reduces the pressure to 60 PSI. The controllers fight each other and erratic operation of both the Controllers causes the downstream Controller to overpressurize and thereby damage itself and overpressurize the Cooling System. The Controllers are designed for continuous flow control and the system they are on is an off and on system tied to the start and stop of the Station Service Air Compressors. The System is being operated with the upstream controller set above the Penstock pressure, thereby taking it out of the picture. The downstream controller is set at 60 PSI and is tuned to respond slowly. Fisher Controls has said that this valve will not function used like this. Re-engineering the System will ensure an adequate and reliable Cooling System for the Station Service Air Compressors. An expansion tank of an ample size would compliment the system. Separating the Fisher Controllers would also benefit the operation of the Valves. An estimated 75 man-hours will be needed to make these changes. 334.04 - Diesel Generator Control Modifications (BL-20-95) A Cool Down Circuit for the Generator will allow the generator to cool down before shutting off. The Turbo needs a chance to cool down before the 16. 7 generator is shutdown. Shutting the Generator off after it has run at full removes the oil pressure to the Turbo. A Cool Down Timer on this circuit will ensure proper oil pressure to the Turbo. 334.05 - 13.8KV Relay Modification (BL-23-95) Adding a Ground Fault Relay to the Station Service XFMR Feeder Breaker will cause the respective 13.8KV breakers to trip, in case of a fault on the XFMR side of the Breaker, instead of tripping the respective Unit off line. This will need to be engineered. 335.10 - Repair Storage Roofs (BL-18-95) The wooden storage buildings at the lay down area needs new roofing material installed if the buildings are kept on the project. 335.11 - Repair Parapet Wall/Gatehouse Roofs (BL-19-95) Repair to the Parapet Walls will protect the wall from damage by water, freezing, etc. Repair of damage/missing roof material will protect these structures from rain, snow, freezing, and other forms of deteriorating circumstances. Complete the procurement of spare parts Estimate for the items not completed is $154,000. Penstock Condensation The Penstock, located on the 5 ft level, gets a lot of condensation on it during much of the year. The dripping water compounds the problem by evaporating into the air and ending up back on the penstock as condensation. A ventilation system would move the air out of the 5 ft level and help to solve this maintenance problem. The Slip Joint on the Penstock has shown signs of deterioration and a dryer environment would help this problem. Estimate for this modification to the air supply is $25,000. Governor Speed Control Modification The governor response to system frequency deviations is slow in the AGC mode of operation. An updated study requiring firm recommendations for setting the governor parameters is recommended. A scope of work and schedule will be recommended to the Operation and Dispatch Committee for action. Estimate for study is $50,000. 18. System Analysis Equipment The Daves Creek and Soldotna Substation SVC systems have been selected for Digital System Monitors (DSM). This equipment would be beneficial in providing information to operate the interconnected systems and analyze system deviations that effect Bradley and the interconnected utilities. Estimate for this equipment is $250,000. BRADLEY LAKE HYDROELECTRIC PROJECT ANALYSIS OF COSTS AND CONTRIBUTIONS 3/20/96 Total Utilities State Total Construction Costs 310,651,030 155,325,515 155,325,515 Section 31 Costs 2,255,000 2,255,000 Costs incurred to date 312,906,030 157,580,515 155,325,515 Estimated to Complete 2,598,958 1,299,479 1,299,479 Estimated Total Construction Costs 315,504,988 158,879,994 156,624,994 Financing Costs Per 9/30/93 Calculation 12,921,538 6,460,769 6,460,769 Interest received 10/1/93 - 1/31/96 (798,335) (399, 168) (399,168) Accrued Interest 1/31/96 (34,064) (17,032) (17,032) Total Financing Costs 12,089,139 6,044,569 6,044,569 Total Project Costs 327,594,126 164,924,563 162,669,563 Contributions 328,235,045 165,260,000 162,975,045 Excess Contributions 640,919 335,437 305,482 ———eeeeee Costs remaining to complete 2,598,958 Total Current Estimated Cash Balance 3,239,877 RECONCILIATION OF CASH BALANCE: Cash held at Trustee 2,963,659 Outstanding Requisitions(555, 561-564) - Cash held by State (AIDEA) 228,073 3,191,732 Interest Receivable 34,064 Total Cash Balance 3,225,796 Unlocated Difference (Cash Shortage) (14,080) h\all\taige\aea\reports\BLCONST.XLS, RESIDUAL BALANCE (2) ALASKA ENERGY AUTHORITY BRADLEY LAKE CONSTRUCTION REPORT OF ACTIVITY ONGOING ACTIVITY BCO10 AEA Operating Costs BC011_ Misc Credits/Int on Retainage BC012 AEA Misc Contracts BC013 AEA Services BC020 BC081 BC082 BCog0 BC100 BC120 BC130 BC140 BC150 BC160 SWEC Equipment Spares Stability Protection Powerhouse Floor/Paint Diversion Tunnel Mitigation./Fish Study Fishwater Bypass Cleanup Construction Deficiencies SCADA COMPLETED ACTIVITY Other Construction Bechtel Camp Catering & Support Turbines/Generators Communications Utility Support & Modifications Boundary Survey Contaminated Soil BC030 BC050 BCO60 BCO70 BC110 Section 31 Costs Feb-96 Activity Activity Activity As of Estimate Estimated 9/30/93 10/93-6/94 FY95 FY96 3/20/96 to Complete Total Cost 12,319,272.00 (5,159) 34,656.30 11,277.21] 12,360,046.98 60,000 | 12,420,046.98 (67,629) (67,629.15) 100,000 32,370.85 3,338,962.00 2,091 3,341,053.41 - 3,341,053.41 2,264,608.00 (55,653) 2,208,954.61 - 2,208,954.61 17,922,842.00 | (126,349.66) 34,656.30 11,277.21 17,842,425.85 160,000 18,002,425.85 39,416,784.00 164,419 70,658.91 39,651,862.02 50,000 39,701 862.02 1,131,645.00 14,285 28,059.12 1,599.19 1,175,587.86 30,000 1,205,587.86 17,250.00 3,286 | 278,669.98 1,729.18 300,935.36 175,000 475,935.36 15,071,254.00 357,258 15,428,512.32 250,000 | 15,678,512.32 - - 125,000 125,000.00 240,896.00 - 240,896.00 50,000 290,896.00 62,547 116,696.32 64,016.70 243,260.37 490,000 733,260.37 340,000 3,027.33 11,079.62 354,106.95 100,000 454,106.95 21,096 41,308.25 29,091.22 91,495.12 866,000 957,495.12 605,717.00 - 605,717.00 200,000 805,717.00 56,483,546.00 | 962,891.18 | 538,419.91 107,515.91 | 58,092,373.00 2,336,000.00 | 60,428,373.00 180,700,129.00 - 180,700,129.00 - 180,700,129.00 19,907,922.00 7,773 19,915,695.00 - 19,915,695.00 15,984,653.00 38,326 16,022,979.34 102,958 | 16,125,937.34 14,161,242.00 - 14,161,242.00 - 14,161,242.00 1,385,093.00 251,274 1,636,367.00 - 1,636,367.00 1,192,832.00 119,754 1,319,128.33 - 1,319,128.33 240,454.00 - 240,454.00 - 240,454.00 847,236.00 (127,000) 720,236.00 720,236.00 234,419,561.00 | 290,127.52 6,164.00 | 234,716,230.67 234,819,188.67 308,825,949.00 | 1,126,669.04 | 573,454.36 | 124,957.12 | 310,651,029.52 Page 1 of 1 102,958.00 _2,598,958.00 | 313,249,987.52 255,000.00 [315,504,987.52 H:\All\elaine\reports\BLCONST.XLS r i ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY => ALASKA i ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 March 15, 1996 Thomas R. Stahr Chairman, Bradley Lake Project Management Committee Municipal Light and Power 1200 E. First Avenue Anchorage, AK 99501 Dear Tom: On February 13th the Bradley Lake Project Management Committee (PMC) approved the FY97 budget for the Bradley Lake hydroelectric project. This budget excluded an annual deposit of $610,000 to the Scheduled Maintenance Fund which was recommended by the Alaska Energy Authority (AEA). The purpose of my letter is to clarify AEA’s opinion that an annual deposit to the maintenance fund is a prudent approach to the financing of future scheduled repairs and replacements at Bradley Lake. Establishing a sinking fund for replacement costs would allow for interest earnings to pay for a significant portion of these costs, and also reduce the annual fluctuation of the utility contributions required to fund the operations and maintenance costs of the project. We understand that the PMC has rejected our recommendation to make deposits to the scheduled maintenance fund. However, we feel it is prudent to remind the PMC of the following points: . The Power Sales Agreement obligates the power purchasers to pay each year for the annual project costs which are defined as “all of the costs resulting from the ownership, operation, maintenance of and renewal and replacements to the Project....°. AEA/AIDEA is under no obligation to provide either interim or long term financing for renewal and replacement costs. Mr. Thomas R. Stahr March 15, 1996 Page 2 . While the Renewal and Contingency (R&C) Reserve may be available to pay for the costs of repairs and replacements to the extent not provided for in the annual budget or by reserves in the Operating Fund, the bond resolution requires that withdrawals from this R&C Reserve be repaid to the Reserve within four years of withdrawal. The current balance of the R&C Reserve is $5,000,000. The current projected replacement costs exceed the available R&C Reserve in several years. Please let me know if you have any questions. Sincerely, ROM Cabor Dennis V. McCrohan, P.E. Deputy Director - Energy cc: William R. Snell, Executive Director Ron Saxton, Ater Wynne Hewitt Dodson & Skerritt h\all\elaine\97budget\bradley\mainfun2 BRADLEY LAKE HYDRO PROJECT OPERATION AND DISPATCH COMMITTEE FEB. 13, 1996 RECOMMENDATION The Operation and Dispatch Committee recommends the approval of the Project Construction List developed by the O&D committee dated Feb. 9, 1996 describing 18 items plus a contingency for an amount not to exceed $2,336,000. The funds for these tasks are authorized from the existing Bradley Lake Construction Fund. Note: This recommendation was deferred from the Feb. 13 meeting. However the BPMC took action on item 17 - Governor Speed Control and approved it an amount not to exceed $50,000. Therefore the revised recommendation is: REVISED RECOMMENDATION APRIL 2, 1996 The Operation and Dispatch Committee recommends the approval of the Project Construction List developed by the O&D committee dated Feb. 9, 1996 describing 18 items plus a contingency. The funding requested shall not exceed $2,336,000 less the $50,000 (Item 17) approved on Feb. 13 which equals $2,286,000. The funds for these tasks are authorized from the existing Bradley Lake Construction Fund. AUDITED FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS A Professional Corporation JUNE 30, 1995 AND 1994 AUDITED FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS JUNE 30, 1995 AND 1994 Audited Financial Statements BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS Anchorage, Alaska Page Independent Auditor's Report 1 Balance Sheets 2 Statements of Revenue, Expenses and Changes in Surplus 3 Statements of Cash Flows 4 Notes to Financial Statements 5-9 Independent Auditor's Report on Additional Information 10 Statements of Expenses 11-13 4 DBeusena, Stromberg & Company A Professional Corporation Independent Auditor's Report Certified Public Accountants 3301 C Street, Suite 520 Anchorage, Alaska 99503 Tel. (907) 563-4547 FAX (907) 561-7683 Bradley Lake Project Management Committee Anchorage, Alaska We have audited the accompanying balance sheets as of June 30, 1995 and 1994 and the related statements of revenues, expenses and changes in surplus and of cash flows for the years then ended, of the Bradley Lake Project Management Committee Operating and Revenue Funds (a project management committee). These special purpose financial statements are the responsibility of the Bradley Lake Project Management Committee. Our responsibility is to express an opinion on these special purpose financial statements based on our audits. Except as discussed in the fourth paragraph, we conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as.evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. The accompanying special purpose financial statements were prepared to present revenue and expenses on an accrual basis with the exception of interest income, which has been presented on a cash basis in order to conform to the fiscal year operations and maintenance budget. In our report dated October 31, 1994, we expressed an opinion that the 1994 financial statements presented fairly the assets, liabilities and revenue and expenses except for the effects of such adjustments, if any, as might have been determined to be necessary had we been able to apply audit procedures to the administrative costs charged by AEA. These costs were subject to litigation between the parties. During 1995, this matter was resolved and the PMC received a reimbursement of $250,000 in settlement of this dispute (Note H). Accordingly, our present opinion on the 1994 financial statements, as presented herein, is different from that expressed in our previous report. In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities and surplus of the Bradley Lake Project Management Committee as of June 30, 1995 and 1994 and its revenue, expenses and changes in surplus and cash flows for the years then ended, in conformity with generally accepted accounting principles. This report is intended for the information and use of the Bradley Lake Project Management Committee and should not be used for any other purpose, Tatras iy Mnrenkag sy ea Sf? PC Parisena, Stromberg & Company, APC Anchorage, Alaska January 4, 1996 BRADLEY LAKE PRuseCT MANAGEMENT COMMITT.WUW OPERATING AND REVENUE FUNDS BALANCE SHEETS JUNE 30, 1995 and 1994 ASSETS Current assets: Investments (Note B) Due from AEA (Note F) Due from Construction Fund Total Assets LIABILITIES AND SURPLUS Current liabilities: Due to State of Alaska Due to AIDEA Due to Construction Fund Accounts payable Total current liabilities Contingencies (Note F) Surplus: Reserved (Note C) Unreserved Total surplus Total liabilities and surplus See accompanying notes to the financial statements. 2 1995 1994 $ 2,485,919 $ 2,003,282 34,903 - 16,760 $2,537,582 $2,003,282 $ = $ 239,946 323,071 60,565 - 18,785 378,006 457.186 701,077 776,482 55,000 40,000 1,781,505 1,186,800 1,836,505 1,226,800 $2,537,582 $2,003,282 BRADLEY LAKE PROsxzcT MANAGEMENT COMMITTE. OPERATING AND REVENUE FUNDS STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN SURPLUS YEARS ENDED JUNE 30, 1995 and 1994 1995 1994 Budget Actual Variance Actual Revenue: Utility contributions $ 13,919,892 $13,919,892 $ - $13,919,892 Interest receipts 1,679,294 1,923,471 244,177 1,878,758 Transfer from Operating Reserve Fund - - - 90,000 Revenue from State (Note H) - 250,000 250,000 - Salary reimbursement from workers' compensation insurance - 24.600 24.600 - Total revenue 15,599,186 16,117,963 518,777 15,888,650 Expenses and debt service: Operations and maintenance 2,628,572 2,116,973 511,599 2,313,377 Interest payments 10,596,285 10,596,285 - 10,763,242 Principal payments 2,795,000 2,795,000 - 2,625,000 Total expenses and debt service 16,019.857 15,508,258 511,599 15,701,619 Excess (Deficiency) of revenue over expenses and debt service (420.671) 609.705 1,030,376 187.031 Surplus, beginning of year 1,226,800 1,014,769 Prior period adjustment (Note D) : 25.000 Surplus, beginning of year 1,226,800 1,039,769 Surplus, end of year $ 1,836,505 $ 1,226,800 See accompanying notes to the financial statements. * 2 BRADLEY LAKE PRGurCT MANAGEMENT COMMITTE. OPERATING AND REVENUE FUNDS STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 1995 and 1994 1995 1994 Cash flows from operating activities: Excess of revenues over expenses and debt service $ 609,705 $ 187,031 Adjustments to reconcile excess of revenues over expenses and debt service to net cash provided by operating activities: Decrease in accounts payable (79,180) (57,958) Decrease in amounts due to State (239,946) 239,946 Increase in amounts due to AIDEA 262,506 60,565 (Increase) decrease in amounts due from AEA (34,903) 152,861 Decrease in workers' compensation receivable - 22,900 Effects of prior period adjustments - 25,000 (Decrease) increase in amounts due to Construction Fund (35,545) 154.286 Net cash provided by operating activities 482,637 784,631 Available cash and cash equivalents at beginning of year 2,003,282 1,218,651 Available cash and cash equivalents at end of year $2,485,919 §_2,003.282 See accompanying notes to the financial statements. 4 BRADLEY LAKE PRGsiCT MANAGEMENT COMMITTEc OPERATING AND REVENUE FUNDS NOTES TO FINANCIAL STATEMENTS JUNE 30, 1995 and 1994 NOTE A: SIGNIFICANT ACCOUNTING POLICIES Description of Business: The Bradley Lake Project Management Committee (the Committee) was established pursuant to Section 13 of the Agreement for the Sale and Purchase of Electric Power (Power Sales Agreement) dated December 8, 1987. The purpose of the Committee is to arrange for the operation and maintenance of the Bradley Lake Hydroelectric Project, which became operational in September 1991, and the scheduling, production and dispatch of power. The members of the Committee include the Alaska Energy Authority (AEA) and the five purchasers under the Power Sales Agreement - Chugach Electric Association, Inc.; Golden Valley Electric Association, Inc.; the Municipality of Anchorage (Municipal Light & Power); the City of Seward (Seward Electric System); and the Alaska Electric Generation & Transmission Cooperative, Inc. (AEG&T). The Homer Electric Association, Inc. (HEA) and the Matanuska Electric Association, Inc. (MEA) are additional parties to the Power Sales Agreement but are included as power purchasers for purposes of representation while AEG&T has no direct vote as a consequence of the individual representation of HEA and MEA. Section 13 of the Power Sales Agreement delineates other Committee responsibilities, including: establishing procedures for each party's water allocation, budgeting for annual Project costs and calculating each party's required contribution to fund annual project costs. Committee approval of operations and maintenance arrangements for the Project, sufficiency of the annual budgets and wholesale power rates and the undertaking of optional Project work requires a majority affirmative vote and the affirmative vote of AEA. The Power Sales Agreement extends until the later of: 1) 50 years after commencement of commercial operation or 2) the complete retirement of bonds outstanding under the AEA Power Revenue Bond Resolution along with the satisfaction of all other payment obligations under the Power Sales Agreement. Renewal options for additional terms exist. Establishment of Trust Funds: Article V, Section 502 of the Alaska Energy Authority's Power Revenue Bond Resolution established a Revenue Fund and an Operating Fund, including an Operating Reserve account, to be held by AEA. In actuality these funds, along with the Debt Service, Excess Investment Earnings (arbitrage), and various construction funds related to the Bradley Lake Hydroelectric Project are all held by the Corporate Trust Department of Seattle- First National Bank in Seattle, Washington. BRADLEY LAKE PRGurCT MANAGEMENT COMMITTE:« OPERATING AND REVENUE FUNDS NOTES TO FINANCIAL STATEMENTS (Continued) JUNE 30, 1995 and 1994 NOTE A: SIGNIFICANT ACCOUNTING POLICIES (Continued) All deposits, including utility contributions and interest earnings, are made into the Revenue Fund, which transfers amounts approximately equal to one-twelfth of the annual operating and maintenance budget into the Operating Fund on a monthly basis. Additional transfers are made from the Revenue Fund to the Debt Service Fund in order to satisfy semiannual interest payments and annual principal payments on the Project's outstanding bonds payable. Interest earnings available for operations and maintenance are derived from the following funds: Debt Service Fund; Operating Reserve Fund; Operating Fund; Revenue Fund; Capital Reserve Fund and the Renewal & Contingency Fund. Revenue and Expense Recognition: Utility contributions are recognized as revenue when due to be received under the terms of the Power Sales Agreement. Transfers from other funds are recognized when the transfer is made and interest earnings are recognized when received. Operating and maintenance expenses are recognized when incurred, while interest and principal payments on bonds is recognized when paid. Income Taxes: The Bradley Lake Project Management Committee is exempt from income taxation under Section 501 (a) of the Internal Revenue Code. NOTE B: INVESTMENTS Substantially all of the balances in the following funds are invested in collateralized investment agreements through the trust department of Seattle-First National Bank. The specified interest rate for monies from the Operating and Revenue Funds invested in the agreements is 7.38%. Balances at June 30, 1995 and 1994 are as follows: 1995 1994 Operating Fund $ 2,004,613 $ 1,516,839 Revenue Fund 481,306 486.443 Total investments $2,485,919 $2,003,282 Investments are sold as needed to cover operating requisitions submitted to the trustee and are therefore considered to be short-term and available for sale. Investments are presented at aggregate cost, which approximates market value. For purposes of the cash flow statements, management considers the full amount of the investment balance to be cash available for operations. 6 BRADLEY LAKE PROvcwT MANAGEMENT COMMITTEL OPERATING AND REVENUE FUNDS NOTES TO FINANCIAL STATEMENTS (Continued) JUNE 30, 1995 and 1994 NOTE C: RESERVED SURPLUS The Committee has been funding the five-year inspection planned for 1996 by including a portion of the total estimated cost of $75,000 in the operating and maintenance budgets in the years prior to 1996. Because the expense for the inspection has not been incurred as yet, the budgeted amounts have been set aside as a reserve of the Committee's surplus as follows: 1995 1994 FY92 funding $ 10,000 $ 10,000 FY93 funding 15,000 15,000 FY94 funding 15,000 15,000 FY95 funding 15,000 - Total reserved surplus $55,000 §_40,000 NOTE D: PRIOR PERIOD ADJUSTMENT The adjustment to the 1994 beginning surplus balance relates to: In prior years, the amounts set aside to fund the five-year inspection were shown as accrued operating and maintenance expenses. No amounts will be paid and no expense incurred until the study is completed in 1996. Therefore, the expenses recorded in prior years are more properly shown as a reservation of surplus. FY92 funding $ 10,000 FY93 funding 15,000 Total adjustment to 1994 beginning surplus $ 25,000 NOTE E: MAJOR CONTRACTS AND AGREEMENTS During May 1994, the Alaska Energy Authority entered into the Master Maintenance and Operating agreement with the Committee. The purpose of the agreement is to establish contract administration and budgeting procedures for maintenance and operation contracts of the Bradley Lake Hydroelectric Project and to provide for the lease or other use of facilities and equipment in a manner consistent with the requirements of the Power Sales Agreement. The term of the Master Agreement is indefinite, remaining in effect until termination of the Power Sales Agreement or until AEA no longer legally exists. This agreement authorizes AEA to enter into any contracts necessary to perform operating or maintenance-type services to the Project, subject to the approval of the Committee. ui BRADLEY LAKE PRO.~ -T MANAGEMENT COMMITTE] OPERATING AND REVENUE FUNDS NOTES TO FINANCIAL STATEMENTS (Continued) JUNE 30, 1995 and 1994 NOTE E: MAJOR CONTRACTS AND AGREEMENTS (Continued) On behalf of the Committee, the Alaska Energy Authority entered into an agreement with Chugach Electric Association, Inc. (CEA) in February 1992 for the provision of all services necessary to dispatch the Bradley Project's electric power output. Terms of the contract specify that payment shall be made to CEA for direct personnel costs, training and the costs of computer. software used for dispatching Project output. The dispatch agreement runs concurrently with the wheeling and related services contract entered into by and among the parties to the Power Sales Agreement in December 1987 and remains in effect for the term of the wheeling agreement unless CEA ceases to be the output dispatcher. In August 1993, the Alaska Energy Authority entered into an interim agreement with Chugach Electric Association, Inc. on behalf of the Committee for the provision of maintenance services for the Daves Creek and Soldotna SVC Substations. It is the Authority's intent to enter into long-term contracts with CEA for these services in the future. An operation and maintenance agreement dated February 11, 1994, was executed between Homer Electric Association and the Alaska Energy Authority. This agreement provides for the operation and maintenance of the Bradley Lake Hydroelectric Project by Homer Electric Association for an initial term of five years, commencing February 11, 1994. The agreement continues from year to year thereafter, except upon written notice to terminate by either party. Notice of termination must be given one year in advance of the termination date. HEA is to be reimbursed for costs associated with the operation, maintenance and repair of the Project as determined in advance through the submission of an annual budget based upon prudent estimates and anticipated operation and maintenance costs. BRADLEY LAKE PRGsiCT MANAGEMENT COMMITTE. OPERATING AND REVENUE FUNDS NOTES TO FINANCIAL STATEMENTS (Continued) JUNE 30, 1995 and 1994 NOTE F: CONTINGENCIES The insurance claims resulting from the aircraft accident which occurred in March, 1993 are still pending at this time. AIDEA/AEA personnel believe it is reasonably possible that approximately $35,000, which represents salaries paid to the injured employees in excess of the amount paid by workers' compensation insurance, may be recovered by Bradley Lake Project Management Committee upon final settlement of the pending claims against the airline's insurance carrier. During 1995, the PMC contracted with the Municipality of Anchorage office of Internal Audit to review and verify charges paid by the PMC for contractual services for fiscal year June 30, 1995. Costs of approximately $73,000 have been questioned by the auditors and are being discussed with the contractor. No resolution has been made at this time. NOTE G: RELATED PARTY TRANSACTIONS During the years ended June 30, 1995 and 1994 the Committee paid the following amounts to related parties for costs incurred under the various contracts described in Note E: 1995 1994 Homer Electric Association - operation and maintenance $ 853,713 $ 350,198 Chugach Electric Association - dispatch services $ 131,722 $ 90,521 Chugach Electric Association - substation maintenance $ 73,681 $ 148,587 NOTE H: LITIGATION During fiscal year 1994, the utility members of the Bradley Lake Project Management Committee were engaged in litigation against the Alaska Energy Authority (AEA) for amounts in excess of $500,000 which related to AEA's charges for general and administrative services. The lawsuit was subsequently settled in the PMC's favor. As a result of the settlement agreement signed in December 1994, AEA was to pay the PMC $250,000 in full settlement of the lawsuit. This payment was contingent upon appropriation by the Alaska State Legislature. During fiscal year 1995, the PMC received funds of $250,000 from this settlement. Bousena, Sromberg & Company A Professional Corporation Certified Public Accountants 3301 C Street, Suite 520 Anchorage, Alaska 99503 Tel. (907) 563-4547 FAX (907) 561-7683 INDEPENDENT AUDITOR'S REPORT ON ADDITIONAL INFORMATION Bradley Lake Project Management Committee Operating and Revenue Funds Anchorage, Alaska Our report on our audits of the special purpose financial statements of the Bradley Lake Project Management Committee Operating and Revenue Funds for June 30, 1995 and 1994, appears on the page preceding the balance sheets. Those audits were made for the purpose of forming an opinion on the special purpose financial statements taken as a whole. The supplemental Statements of Expenses are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the special purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the special purpose financial statements taken as a whole. ee ; EES - a IP Ee_ Parisena, Stromberg & Company, APC Anchorage, Alaska January 4, 1996 10 BRADLEY LAKE PROJEC {ANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS STATEMENTS OF EXPENSES JUNE 30, 1995 and 1994 Expenses: Generation expense: Operation supervision and engineering: Personnel Travel and training Contractual Supplies and materials Total operation supervision and engineering Hydraulic operation: Personnel Contractual Total hydraulic operation Electric plant operation: Personnel Travel and training Contractual Supplies and materials Total electric plant operation 158.500 1995 Variance Favorable 1994 Budget Actual (Unfavorable) Actual $ - §$ - § - $ 155,198 - - - 6,624 124,000 95,418 28,582 53,013 - - - 53 124,000 95,418 28,582 214,888 7 7 - 295 47,000 27,093 19,907 58,854 47,000 27,093 19.907 59.149 - - - 58,969 - - - 1,411 158,500 133,278 25,222 66,122 - : - 8.558 133,278 25,222 Hydraulic power generation operation: Personnel Contractual Supplies and materials Total hydraulic power generation operation Rents - contractual Structure maintenance: Contractual Supplies and materials Equipment and machinery Total structure maintenance Continued —__135,060 - = = 22,877 320,500 210,703 109,797 164,810 - - - 1,978 320,500 210.703 109.797 189,665 - 200 (200) - 20,000 17,828 2172 2,082 . - - 6,434 7 . - 599 20.000 17,828 2.172 9.115 11 BRADLEY LAKE PROJEUt MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS STATEMENTS OF EXPENSES (Continued) JUNE 30, 1995 and 1994 12 1995 Variance Favorable 1994 Budget Actual (Unfavorable) Actual Reservoir, dam, and waterway maintenance - contractual $ 15,600 $ 2.673, 12927 4.384 Electric plant maintenance: Personnel - - - 97,250 Contractual 423,000 290,783 132,217 105,342 Supplies and materials - - - 11,409 Equipment and machinery - : - 579 Total electric plant maintenance 423.000 290.783 132.217 214.580 Hydraulic plant maintenance: Personnel - - - 107,752 Contractual 148,700 65,820 82,880 32,242 Supplies and materials - - - 21,779 Equipment and machinery - : : 20,151 Total hydraulic plant maintenance 148.700 65,820 82,880 181,924 System control and load dispatching: Personnel - - - 1,044 Training and travel - - - 351 Contractual 344,220 358,644 (14,424) 263,146 Supplies and materials : - - 7 Total system control and load dispatching 344.220 358.644 (14,424) 264.548 Substation operation and maintenance - contractual 58.020 73.681 (15,661) 150,024 Overhead line maintenance - contractual 23,000 17.616 5.384 19.568 Continued BRADLEY LAKE PROJEC MANAGEMENT COMMITTEE OPERATING AND REVENUE FUNDS STATEMENTS OF EXPENSES (Continued) JUNE 30, 1995 and 1994 Budget Administrative, general and regulatory expense: Insurance $ 363,350 Administration 430,682 Contractual - Regulatory commission: FERC land use fees 60,000 Five-year inspection 15,000 FERC administrative fees 50,000 FERC licensing 27,000 Travel and training - Americans with disabilities survey - Total administrative, general and regulatory expense 946,032 Total operating and maintenance expenses $2,628,572 1995 Actual $ 328,320 330,602 59,023 79,900 23,919 1,472 823,236 $2,116,973 Variance Favorable 1994 (Unfavorable) Actual $ 35,030 $ 244,084 100,080 212,067 - 198,486 977 57,932 15,000 - (29,900) 157,855 3,081 - - 48 (1,472) - 122,796 870,472 S$ 511.599 = $2,313,377 Bradley Lake PROJECT MANAGEMENT COMMITTEE MEETING 5 (Date) 4) ML? - Cononvettir A oon (Location) PLEASE SIGN IN No. NAME REPRESENTING 10 1] 12 13 14 15 16 17 18 19 20 21 22 92Q2\IT9884 Bradley Lake PROJECT MANAGEMENT COMMITTEE MEETING lil 2,19%9b (Date) DL + / eee pa (Location) PLEASE SIGN IN NAME REPRESENTING BaD i “Wee AF Lexy x 1 LEE SHUBERT 15 VR ne ASA WV wymike 2. Bh] 7H LAID sz mes oberg IT | Era ~Ffapp\— CEA | LG t/ Prete FNS | 19-7 Ps] ite ; NEA | 20 | 21 | 22 92Q2\IT9884 “Tage St & Bradley Lake MLE? - Commesis~ Kom (Location) PLEASE SIGN IN No. NAME REPRESENTING 22 92Q2\IT9884 3 ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY / = ALASKA im =ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 April 8, 1996 Ms. Cindy S. Carl, Owner Executary 626 Cordova, Suite 104 Anchorage, Alaska 99501 Dear Cindy: Please provide a summary from the enclosed tapes for the Bradley Lake Project Management Committee (BPMC) meeting minutes (send a disc of the minutes too). The next meeting date is: June 18, 1996. If you have any questions, please call me. Sincerely, Shauna M. Dean Enclosures — — 7 BILLING INQUIRES (907) 257-4232 Anchorage ADVERTISING INVOICE (is 1cLING PERIOD 03/01/96 Daily News 03/31/96 21 ADVERTISER/CLIENT NAME AK ENERGY AUTHO al TOTAL AMOUNT DUE ———] “UNAPPLIED TERMS OF PAYMENT NET 20 2a CURRI NET AMOUNT DUE T DAYS 60 DAYS 90 DAYS AMOUNT PAID PAGES [51 BILLING DATE aL BILLED ACCOUNT NAME AND ADDRESS aI REMITTANCE ADDRESS 1 /03731796 BRLED A NUMBER ALASKA ENERGY AUTHORITY ANCHORAGE DAILY NEWS 480 W. TUDOR ROAD PO BOX 140147 ALASO709 ANCHORAGE AK 99503 —TADVERTISER/CLIENTNUMBER | ANCHORAGE AK ALASOTO9 99514-0147 PLEASE DETACH AND RETURN UPPER PORTION WITH YOUR REMITTANCE : ate [11] NEWSPAPER REFERENCE _|i2)ia|ta DESCRIPTION - OTHER COMMENTS/CHANGES KA a. ae 1s] Gross amount feo] NET AMOUNT 3/26 |T1060060325 SHAUNA M.D/ ALASKA ENERGY 1.0X 7.00" 38.85 DN 0900 NCLN 03726 37.0CL i) SHREKSEKESSEEKSEKHEESEEKEE THIS INVOICE REFLECTS YOUR CHARGE FOR EACH AD. ALL CHARGES WILL APPEAR ON YOUR MONTH END |STATEMENT. SKSSSEKEFSESEESKEKEEREREE Loa BL rant ohay 7 Pe DEGEMEp J Dew WN we be ¥ Yo -76 Pe co ‘ I iorrvant anf Papo 4yuthaiity Copy fo be J \TEMENT OF ACCOUNT AGING OF PAST DUE AMOUNTS Sal” ‘CURRENT NET AMOUNT DUE 30 DAYS. SO DAYS SODAS. *UNAPPLIED AMOUNT al TOTAL AMOUNT DUE achorage Daily News BOX 140147 e ANCHORAGE, AK 99514-0147 *UNAPPLIED AMOUNTS ARE INCLUDED IN TOTAL AMOUNT DUE 1 BILLING PERIOD SL BILLED ACCOUNT NUMBER fr] ROVERTISERICLIENT NUMBER —TZ ADVERTISER/CLIENT NAME ALASO709 r ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY {= ALASKA im ~=ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 March 22, 1996 FAXED: 3/22/96 2 PAGES Anchorage Daily News 1001 Northway Drive Anchorage, Alaska 99508 ATTENTION: Ms. Eva Kaufmann Legal Classified Subject: Public Notice Account # ALASO709 Enclosed is an advertisement for the Alaska Energy Authority which is to be published under “PUBLIC NOTICE” in the Legal Classified section in column format. This notice needs to be published for one day: Tuesday, March 26, 1996. After the publication date, please provide an Affidavit of Publication. If you have any questions, please do not hesitate to call me. Thank you, Shauna M. Dean Attachment hall\eva\bradley\bladvtzg ALASKA INDUSTRIAL DEVELOPMENT ip sn Baoont nUTEORNY /@, ALASKA qm = ENERGY AUTHORITY 4 a 480 WEST TUDOR Tr oHORAGE ALASKA 99503 907 / 561-8050 FAX 907 561-8998 FACSIMILE TRANSMITTAL . Ci? TO: Vactron Da. pee. 3 Ed 465° dP r _ « 2 FAX #: (907) YE5-~SBIS7A LONG DISTANCE CALL ACCOUNTING CODE (4 digits): FROM: a Le ans DATE: =e - 16 TIME: NUMBER OF PAGES (including this cover page): ea TRANSMITTAL CONTENTS: COMMENTS: Notice: This facsimile may contain confidential information that is being transmitted to and is intended only for the use of the recipient named above. Reading, disclosure, discussion, dissemination, distribution, or copying of this information by anyone other than the named recipient or his or her employees or agents is strictly prohibited. If you have received this facsimile in error, please immediately destroy it and notify us by telephone , (907)561- 8050. rd te ye 0000000000000 OOOO COO OOOO CCC CCCI x P. 01 x x ! i TRANSACTION REPORT x x ws MAR-22-96 FRI 11:13 x x x x SEND (M) x x x x DATE START RECEIVER TX TIME PAGES TYPE NOTE Mt DP x x x x MAR-22 11:12 919074655442 53” 2 SEND (M) OK 025 x x x x x x TOTAL 53S PAGES: 2 Xx x x OOOO OO OOO OOOO OOOO 00 0000000000000. 0000200003030 011K KK OK * Pen ae * UES SSRI" BB ALASKA * ME «ENERGY AUTHORITY ee 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 561-8050 FAX 907 561-8998 FACSIMILE TRANSMITTAL TO: Y bere. ee lI FAX#: ($07) YE5-BY7A LONG DISTANCE CALL ACCOUNTING CODE (4 digits): m FROM: 9 aati Bilas a? DATE: 3 ~akel—- 6 TIME: NUMBER OF PAGES (including this cover page): A TRANSMITTAL CONTENTS: eo . ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY = ALASKA @@—_ ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 Facsimile Transmittal TO: CY Hack pr pr / y ———\ ; N Company ch svat » Lowy, | eee Fax #: VF. J/ 90 xm / os From: Yfltawrp <1 Vs Date: 3 ZA -76 Time: Seas OD Number of pages including cover page: 3 Transmittal Contents: Comments: ~) / 1 /) - thirw Otk He Jun Notice: This facsimile may contain confidential information that is being transmitted to and is intended only for the use of the recipient named above. Reading, disclosure, discussion, dissemination, distribution, or coping of this information by anyone other than the named recipient or his or her employees or agents is strictly prohibited. If you have received this facsimile in error, please immediately destroy it and notify us by telephone, (907) 269-3000. H/all/cheryl/fax/one.doc YOK KKK KKK KKK KKK KKK KKK KKK KKK KAKO K KK KKK KKK KK KK KKK KKK KKK KK KKK KKK KKK KOK KKK De De DE ME DME DME DK KK OO OE OM \ TRANSACTION REPORT P01 as MAR-22-96 FRI 11:51 SEND (M) DATE START RECEIVER TK TIME PAGES TYPE NOTE tt DP MAR-22 11:51 912798170 xxx" «0s SEND ( M) BUSY 026 TOTAL 0S PAGES: 0 OOOO OOOO OOOO OOOO OOOO KCK COOK OOK KCC OOOO OOOO OOOO OOOO OOOO OOK ALASKA INDUSTRIAL DEVELOPMENT * Ano EOCRTAUTIONTY = ALASKA me _ ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 Facsimile Transmittal TO: CY LU tk mare Company Lachaarg Lo er! foe Fax#: af f/70 From: ar La Date: 2 ZA-76 Time: SL BeO Cita. = Number of pages including cover page: 2 Tranemitta! Dantantn- De Me DM ME MK DM DK OK OM OM OO OK OK 74K KKK KK KKK OK KK KKK KK KKK KKK KKK KK KKK KKK KKK KKK KK KK KKK KKK KKK KOK KOK x P. 01 x x oA TRANSACTION REPORT x x ————————— MAR-22-96 FRI 15:46 x X X x DATE START RECEIVER TX TIME PAGES TYPE NOTE Mt DP x x x x MAR-22 15:44 92798170 1/51" 3 SEND OK x x x OOOO X KKK KKK KKK KKK KKK KKK KK KKK KK KK KK KKK KKK KKK KKK KKK KKK KKK KKK KKK OK KOK OKA KKK K “Plena weview + make charges. X02. DVM "Phowke. rectum te Shaune- aoe “ BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE _ “ MEETING MINUTES e Commission Room Dish by red Anchorage Municipal Light & Power 1200 East 1st Avenue ~ 2/46 Anchorage, Alaska Tuesday, April 2, 1996 10:00 a.m. 1. CALL TO ORDER Chairman Tom Stahr called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:00 a.m. in the Commission Room of Anchorage Municipal Light & Power, 1200 East 1st Avenue, Anchorage, Alaska, to conduct the business of the Committee per the agenda and public notice. 2: ROLL CALL Roll was called by Shauna Dean. The following members were present, and a quorum was established: Tom Stahr, Chairman Anchorage Municipal Light & Power Dave Calvert City of Seward Eugene Bjornstad, Vice Chairman Chugach Electric Association Wayne Carmony, Treasurer Matanuska Electric Association Don Stead Homer Electric Association Bradley Evans Golden Valley Electric Association Dan Beardsley Alaska Energy Authority Others Present: Tim McConnell, Municipal Light & Power Mary Ann Pease, Municipal Light & Power Stan Sieczkowski, Alaska Energy Authority Shauna Dean, Alaska Energy Authority Lee Thibert, Chugach Electric Association John S. Cooley, Chugach Electric Association Dora Gropp, Chugach Electric Association Mike Kelly, Golden Valley Electric Association Steven Haagenson, Golden Valley Electric Association Jim Hall, Matanuska Electric Association Bob Hufman, AEG&T Bradley Lake Project Maiiayement Committee Meeting Minutes Tuesday, April 2, 1996 Page 2 of 5 Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerritt Del LaRue, Dryden & LaRue Al Peabody, Dryden & LaRue 3. PUBLIC COMMENT None. 4. AGENDA COMMENTS Agenda Item 9.C., Moose Mitigation, was deleted. Under Item 10.A., Approval of Legal Expenses and Other Expenses, it was noted the person giving that report would be Mr. Carmony rather than Mr. Bjornstad. There being no further additions or corrections to the agenda, they were adopted by unanimous consent. 5. APPROVAL OF MEETING MINUTES - FEBRUARY 13, 1996 MOTION: Mr. Bjornstad moved for approval of the minutes. Seconded by Mr. Calvert. On page 4, second paragraph under Item 9.B., Agreement Briefing, Mr. Saxton asked that the first line be changed from "Mr. Saxton said the Power Sales Contract consisted of three documents...." to "Mr. Saxton said the initial Bradley Lake agreements consisted of three documents...." There being no further corrections, a voice vote was taken, and the minutes were approved as amended. 6. BUDGET SUBCOMMITTEE REPORT Ms. Pease reported the Budget Subcommittee had met March 19, 1996, to discuss the Parisena Stromberg audit. Ms. Pease said Bonnie Godfred and Gary Stromberg were present to provide an overview of the audit. Ms. Godfred said the litigation between the Bradley PMC and the AEA regarding administrative charges had resulted in an uncertainty in the independent auditor's report last year. She said that matter had been resolved, and the PMC had received a clean opinion this year. Ms. Godfred briefly addressed the revenue surplus reflected in the Statements of Revenue, Expenses, and Surplus on page 3 and how it related to the Balance Sheet on page 2. Ms. Godfred pointed out a new footnote on page 9 related to contingencies for pending claims as a result of the airplane crash and explained how it related to the second paragraph regarding the results of the internal audit conducted in 1995 by the Municipality of Anchorage. She said the $73,000 still in dispute between Bradley and Chugach had been expensed, and no adjustment was made for the uncertainty. MOTION: Mr. Beardsley moved to accept the audit as presented. Seconded by Mr. Kelly. There being no discussion, a voice vote was taken, and the motion passed unanimously. Bradley Lake Project Mai _ ment Committee Meeting Minutes Tuesday, April 2, 1996 Page 3 of 5 ts OPERATION AND DISPATCH SUBCOMMITTEE REPORT A. Construction Funding Sources Mr. Sieczkowski reported the O&D Subcommittee had met March 14, 1996. HEA had reported the maintenance scheduling program was operational following installation of the updates. The water and energy allocation reports were being modified for clarification of the information reported. The permitting process for reopening the Martin River airstrip was 98 percent complete at this time. Mr. Sieczkowski reported the comments had been received from the utilities regarding the governor response and control study approved by the Committee at the last meeting. He said the scope was being finalized, and Mr. Stead, from HEA, had been designated as the Project Engineer for the study, with support from Moe Aslam, ML&P, and Alice Mullens, CEA. He said the report would be finalized and returned to the O&D Subcommittee for action. Mr. Sieczkowski said that Bradley operations had been normal since the last Committee meeting. He said Mr. Stead would give the maintenance report. Mr. Sieczkowski said the next meeting of the O&D Subcommittee was scheduled for May 16, 1996. Mr. Stead said they were currently preparing for the scheduled outage at the end of the month. B. Construction List - Consideration and Action Referring to the March 28 letter from Mr. McCrohan to Mr. Stahr regarding Bradley construction funds and punchlist, Mr. Beardsley reviewed the outstanding items with the Committee. He said it was AEA's intention to identify the outstanding items as budget items and provide HEA an escrow account so they could complete the punchlist items and construction could be finalized. Mr. Beardsley briefly discussed the three items at the bottom, two of which related to outstanding issues with Brown & Root. Mr. Beardsley also provided an overview of the Analysis of Costs and Contributions. Mr. Sieczkowski responded to questions, and discussion was heard. Ms. Pease recommended that a final audit be conducted on the construction fund to ensure the balances shown on the report were accurate. Chairman Stahr concurred and proposed that the report be submitted to the Budget Subcommittee for review and recommendation regarding the advisability of conducting a final audit. Further discussion was heard regarding individual items, cost control methods, and contract procedures. MOTION: Mr. Kelly moved that the Committee approve the Bradley Lake Hydroelectric Project proposed final construction list dated 3/27/96 for a total of $2,598,958, which included 18 individual items and $212,000 in contingency funding, and that the Committee authorize the O&D Subcommittee to approve the 18 items, provided the actual cost did not exceed the cost set forth on the final construction list plus the allocated contingency funding for each item. Seconded by Mr. Bjornstad. Bradley Lake Project Mat _ ment Committee Meeting Minutes Tuesday, April 2, 1996 Page 4 of 5 Mr. Carmony stated his opposition to the motion and the reasons therefor. Discussion was heard. The question was called, and a roll call vote was taken. The motion passed with one objection by Matanuska Electric Association. MOTION: Mr. Kelly moved that the Committee delegate to the Budget Subcommittee the task of reviewing the AEA close-out and making a recommendation to the Committee as to whether or not a final audit should be conducted. Seconded by Mr. Bjornstad. There being no discussion, a roll call vote was taken, and the motion passed unanimously. S: INSURANCE SUBCOMMITTEE Mr. Beardsley said he was still awaiting a copy of the certificate of insurance on the aircraft from Mr. Stead for HEA. Mr. Stead confirmed that HEA had contacted Gwaltney & Gwaltney, and the insurance certificate would be forwarded. 9. OLD BUSINESS A. Spinning Reserves Update In Mr. Lovas' absence, Mr. Bjornstad read into the record Mr. Lovas' report from the ASCC meeting in Juneau that was held March 8, 1996. B. Agreements Status Mr. Beardsley reported that a meeting was scheduled for April 4, 1996, at 9:30 a.m. for the final effort to resolve the agreements. He said he was aware ML&P would be submitting comments. He said the objective was to deal with the substantive and wordsmithing issues, and to bring policy issues back to the PMC. He said it was his intention to resolve all issues for submission of a final draft to the PMC at the next Committee meeting. In response to questions, Mr. Beardsley elaborated on specific outstanding issues. C: Moose Mitigation This item was deleted under Item 4., Agenda Comments. 10. NEW BUSINESS A. Approval of Legal Expenses and Other Expenses Mr. Carmony reported that the payment of $2,789.77 approved by the Committee at the last meeting had not been made, and they were taking steps to correct the problem and issue the check. Mr. Carmony reported that bills had been received from Ater, Wynne, Hewitt, Dodson & Skerritt in the amount of $5,052.09 for the months of January and February 1996. Bradley Lake Project Mar _ ment Committee Meeting Minutes Tuesday, April 2, 1996 Page 5 of 5 Mr. Carmony said he was concerned that the activities to which the billings related involved persons other than himself, and he was unable to request authorization of the expenditures because he had no knowledge whether they were valid or not. He suggested that the Committee determine a more appropriate method by which to review and approve the legal expenses. There was a consensus that this item would be tabled until the next meeting for further discussion of Mr. Carmony's request. 11. COMMITTEE MEMBER COMMENTS Chairman Stahr reported he had received a request for reconsideration from Mr. McCrohan regarding the sinking fund that the Board had previously rejected for funding from the budget. Mr. Stahr distributed copies of the letter from Mr. McCrohan dated 3/15/96, and discussion was heard. Chair Stahr asked the O&D Committee to review the list of future expenditures and then to turn it over to the Budget Subcommittee for their review and recommendation to the Board. 12. NEXT MEETING DATE The next regular meeting of the Bradley Lake Hydroelectric Project Management Committee was scheduled for Tuesday, June 18, 1996, at 10:00 a.m., in the Commission Room of ML&P. 13. ADJOURNMENT MOTION: Mr. Bjornstad moved to adjourn. Seconded by Mr. Kelly. There being no objection and no further business of the Committee, the meeting was adjourned at 11:09 a.m. BY: Tom Stahr, Chairman ATTEST: Alaska Energy Authority, Secretary SD:Executary/csc 1364bpmc.min 04/28/96 ALASKA INDUSTRIAL DEVELOPMENT » AND EXPORT AUTHORITY {= ALASKA @™__=ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 April 1, 1996 Mr. Thomas R. Stahr Bradley PMC Chairman Anchorage Municipal Light & Power P.O. Box 196094 Anchorage, Alaska 99519-6094 Subject: Bradley PMC Meeting Dear Tom: Dennis V. McCrohan will be unable to attend the Bradley PMC meeting on April 2, 1996. Daniel W. Beardsley, Contracts Manager, Energy, will represent the Authority on matters before the PMC Sincerely, Executive Director Seis *¥ @ iy eeaae: Jbly — ¢-2 Ie @_ 10°00 am, aa ea Te Ory Stu t [008 hel Cal) x =: ge 2 eh | Pid a* Coniston a F225: ao SOF heck. Cometh ne 4 ss : 3) Mpprarel. of 7th, Minutes” fe Oe Sa capes Solrithe Bid “les ERG. sactie. = oo ~“Remie Coded 3 i a: Orpen We ~ Greg, “Book re il ae, tnt — Py a —Cortingert se ngert ste on “P love erg e to. wi Ronnie ae Mh) vr DO, -———_ + Hh methip Ate Add 3-08-76 Gad ol dapat “es ' 3fa0/re ah By dich x fee Handed fi. pombe Hh DNS! smcblaag 2 ek il ee oc tr uae Ms a AS LAD, hock satay ined hes yey Oo Hina. Mentos Bal A DE pea cerths 5 ee eee ee eet pinges. 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