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HomeMy WebLinkAboutBPMC Meeting March 16, 2012 1BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING (via electronic media at the Alaska Energy Authority’s Aspen Room) Anchorage, Alaska March 16, 2012 — 10:00 a.m. MINUTES 1. CALLTO ORDER Chair Brad Evans called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:00 a.m. on Friday, March 16, 2012, from the AEA Aspen Conference Room, Anchorage, Alaska to conduct the business of the Committee per the agenda and public notice. 2. ROLL CALL Roll was called by May Clark. The following members were present: John Foutz City of Seward (joined by teleconference while meeting in progress) Joe Griffith Matanuska Electric Association Brad Evans Chugach Electric Association Brad Janorschke Homer Electric Association Henri Dale Golden Valley Electric Association Richard Miller Anchorage Municipal Light & Power Bryan Carey Alaska Energy Authority 3. PUBLIC ROLL CALL Burke Wick, CEA Bob Day, HEA Larry Jorgensen, HEA Kirk Gibson, McDowell, Rackner & Gibson PC (teleconference) Kelli Veech, AEA Yolanda Inga, AEA May Clark, AEA 4. PUBLIC COMMENT There were no public comments. 5. AGENDA COMMENTS / MOTION FOR APPROVAL The agenda was approved as presented. ee ee nn nai LAA RR nt een ea aN ee es Ak MRE AEE Rs a tena Page lof 5 BPMC Minutes 3/16/2012 6. APPROVAL OF MEETING MINUTES — January 19, 2012 The January 19, 2012 meeting minutes were unanimously approved as amended. 7. NEW BUSINESS 7A. Amend FY 12 Capital Budget MOTION: Mr. Griffith moved that the Bradley Lake Project Management Committee amend the FY12 capital budget (Schedule A-1) to replace 160 ton Bridge Crane controls as recommended by the O&D and Budget Subcommittees for $271,000. Postpone other FY12 capital projects (Accusonic Flow Meter Monitoring $10,000, Fish Water Valve Actuators $20,000, and Utility Vehicles $11,000) and the R&C project for the Fire Alarm System of $250,000 to the FY13 capital budget. The total FY12 capital budget and R&C project deferrals to FY13 is $291,000. Seconded by Mr. Janorschke. Mr. Miller said the budget committee met and approved this item. The crane issues need to be corrected. In response to a question from Mr. Griffith, Mr. Day said the crane is old and the hooks don’t work correctly, and besides the safety issue, the crane will be needed for upcoming outages. A roll call vote was taken: City of Seward: Absent Matanuska Electric Association: Yes Chugach Electric Association: Yes Homer Electric Association: Yes Golden Valley Electric Association: Yes Anchorage Municipal Light & Power: Yes Alaska Energy Authority: Yes The motion passed unanimously. 7B. Approve FY 13 Operating & Capital Budget MOTION: Mr. Griffith moved that the Bradley Lake Project Management Committee approve the fiscal year 2013 Operating and Capital budget as presented. Seconded by Mr. Janorschke. Mr. Miller said the budget committee met and approved the proposed budget and asked HEA to prioritize Schedule A-1 capital projects not included in the R&C fund. Two large increases made this year are R&C Fund retainment and operations and maintenance. The large items being deferred are the fire alarm system and mechanical relays. Mr. Day confirmed a couple of trips occurred recently due to aging of the mechanical relays. Discussion followed regarding personnel wages and contracts. (Mr. Foutz, City of Seward and Mr. Gibson, McDowell, Rackner & Gibson PC joined the meeting at 10:16 a.m. by teleconference) On Page 2 of 5 BPMC Minutes 3/16/2012 In response to a question by Chair, Mr. Day said there are six housing units available now in staging for Battle Creek work. Mr. Carey said helicopter work will begin this summer with geotechnical work beginning in July or August. He said this will be discussed with R&M and Homer Electric and he will discuss project scheduling and report back to the BPMC. Housing needs were discussed. A roll call vote was taken: City of Seward: Yes Matanuska Electric Association: Yes Chugach Electric Association: Yes Homer Electric Association: Yes Golden Valley Electric Association: Yes Anchorage Municipal Light & Power: Yes Alaska Energy Authority: Yes The motion passed unanimously. 7C. Renew Swalling & Associates Contract MOTION: Mr. Janorschke moved that the Bradley Lake Project Management Committee approve a one year renewal of the contract with Swalling and Associates for audit services for the year ending June 30, 2012 and also approve a 2.8% audit fee increase based on the 2011 CPI index for Anchorage per the 2008 contract. Seconded by Mr. Griffith. Mr. Miller said Swalling charges $14,000/year for the audit and next year a new RFP will go out for audit services. Swalling has done a good job doing extra work as needed and auditors are getting hard to find. A roll call vote was taken: City of Seward: Yes Matanuska Electric Association: Yes Chugach Electric Association: Yes Homer Electric Association: Yes Golden Valley Electric Association: Yes Anchorage Municipal Light & Power: Yes Alaska Energy Authority: Yes The motion passed unanimously. 7D. Update on Battle Creek Diversion Mr. Carey said a consultation meeting slide show presentation was held with the Agencies on February 14, 2012. They were requested to provide us with Draft Licensing Conditions by March 20, 2012, including required environmental flows. The AEA consultants presentation demonstrated that when glacial water is removed from Upper Battle Creek the water temperature in Lower Battle LL a ae Ts BPMC Minutes 3/16/2012 Creek increased to the optimum temperature zone for Coho salmon as determined by the Cooper Lake studies. We should receive R&M’s proposal next week for geotechnical work next summer, which will include a substantial amount of drilling work showing locations of the canal and road. We should receive a complete cost & design estimate by December; and per the FERC schedule, receive the License Amendment next year. This summer mountain goat, bear and eagles nest surveys will be performed. Regarding annual project costs, he said Western Financial Group, as instructed by Valorie Walker, estimated annual project costs using 20 and 25 year term bonds and $20 M and $25 M financing estimates. (The printed estimates were distributed to the meeting attendees). The current debt service averages 3.77% with bonds issued in July 2013. Using energy at approximately 39,000 MWh, (assuming the diversion from May through November at 36,000 to 42,000 ac-ft and with the assumption that one MWh is equal to one acre feet of water), the debt service annual cost would be $33/MWh to $48/MWh, depending on the term and amount of funds used. It’s assumed AIDEA or AEA will perform the bonding. Financing may entail amending the Power Sales Agreement (PSA) and waiting on amending the PSA for better financing information and cost estimates. The assumption for the financing was using bonds issued July 1, 2013, there’s time until we get the Amendment next spring, also considering whether construction will occur next year. We are looking at going out to bid in 2013 with two years of construction occurring during summer months. We will blast the tracks the first year then blast deeper the second year and perform more site work. Mr. Griffith stressed the importance of beginning work on strategy and on the agreements as soon as possible. Bonding, financing, timing and possible amendment to the existing PSA was discussed. Mr. Carey said there’s a section in the PSA that refers to required or optional work, and it was decided this work would be under the required section, which would be a prudent project for the utilities. 8. Committee Reports / Comments A. Operator’s Report — Larry Jorgensen Mr. Jorgensen said included in the written report provided are generation statistics for both units. The lake level as of March 8 was 1131.1 feet, six feet higher than last year. Annual switchman training for all operators was given by Kevin Dunham of CEA. PO was issued for DCS/Vibration system to Emerson. Cascade Maintenance Management System in service with all PMs and equipment information transferred from old Mapcon system. Completed draft budget for review. Made repairs to loader, snow plow and incinerator. SCADA RTU 15 has had frequent failures. Unit #2 tripped on February 29 with no lockouts and conflicting indications. Replaced 86X relay and a Genius block, both of which had failed. There were no other meeting comments. EEE Page 4 of 5 BPMC Minutes 3/16/2012 Meeting summary/assignments: e The Budget Finance Committee to work on RFP for audit services, form their working group, coordinate with appropriate AEA personnel to work out a finance plan for Battle Creek and report back to the BPMC. e Mr. Gibson will begin to think about modifying the existing PSA. B. Next Meeting Date The next meeting will be at the call of the Chair. 9. Adjournment The meeting adjourned at 10:50 a.m. BY: ATTEST: ———————————DDDD9D———————————EE———————————————————— Page 5 of 5 BPMC Minutes 3/16/2012 = ALASKA... = ENERGY AUTHORITY BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING AGENDA Friday, March 16, 2012 — 10:00 a.m. (via electronic media at the Alaska Energy Authority’s Aspen Room 813 West Northern Lights Boulevard, Anchorage, AK) 1. CALL TO ORDER Evans 2. ROLL CALL (for Committee members) 3. PUBLIC ROLL CALL (for all others present) 4. PUBLIC COMMENT 5. AGENDA COMMENTS / MOTION FOR APPROVAL 6. APPROVAL OF MEETING MINUTES -— January 19, 2012 % NEW BUSINESS A. Amend FY 12 Capital Budget (Action Item) Cunningham B. Approve FY 13 Operating & Capital Budget (Action Item) Cunningham Cc. Renew Swalling & Associates Contract (Action Item) Cunningham D. Update on Battle Creek Diversion Project Carey 8. COMMITTEE REPORTS / COMMENTS A. Operators Report Jorgensen B. Next Meeting Date Evans 9. ADJOURNMENT 813 West Northern Lights Boulevard Anchorage, Alaska 99503 T 907.771.3000 Toll Free (Alaska Only) 888.300.8534 F 907.771.3044 Construction Fund Deposit: 20,000,000 20,000,000 20,000,000 25,000,000 25,000,000 25,000,000 Term in Years: 20 25 25/Wrap 20 25 25/Wrap Reserve Fund Deposit: 1,453,014 1,281,778 1,281,778 1,850,248 1,633,602 1,633,602 Current Battle Current Battle Current Battle Current ——Battle. Current —Battle Current Battle Year Ended Bradley _Creek Total Bradley __Creek Total Bradley _ Creek Total Bradley _Creek Total Bradley __Creek Total Bradiey Creek Total July 1, 2013 12,107,950 12,107,950 12,107,950 12,107,950 12,107,950 12,107,950 42,107,950 12,107,950 12,107,950 12,107,950 12,107,950 12,107,950 July 1, 2024 12,104,950 1,458,752 13,563,702 12,104,950 1,283,928 13,388,878 12,104,950 1,287,075 13,392,025 12,104,950 1,375,073 13,480,023 12,104,950 1,140,888 13,245,838 12,104,950 1,218,288 13,323,238 Joly 1, 2015 12,475,850 1,464,639 13,940,489 12,475,850 1,290,178 13,766,028 12,475,850 1,290,025 13,765,875 12,475,850 1,863,660 14,339,510 12,475,850 1,641,626 14,117,476 12,475,850 1,647,838 14,123,688 July 1, 2016 12,494,600 1,467,639 13,962,239 12,494,600 1,290,678 13,785,278 12,494,600 1,291,025 13,785,625 12,494,600 1,869,348 14,363,948 12,494,600 1,646,876 14,141,476 12,494,600 1,647,088 14,141,688 July 1, 2017 12,426,200 1,467,639 13,893,839 12,426,200 1,294,078 13,720,278 12,426,200 1,299,425 13,725,625 12,426,200 1,871,148 14,297,348 12,426,200 1,649,276 14,075,476 12,426,200 1,653,088 14,079,288 July 1, 2018 12,778,100 1,473,639 14,251,739 12,778,100 1,295,828 14,073,928 12,778,100 1,299,425 14,077,525 12,778,100 1,876,398 14,654,498 12,778,100 1,648,276 14,426,376 12,778,100 1,653,588 14,431,688 July 2, 2019 12,778,588 1,472,389 14,250,977 12,778,588 1,296,078 14,074,666 12,778,588 1,297,675 14,076,263 12,778,588 1,873,898 14,652,486 12,778,588 1,650,526 14,429,114 12,778,588 1,656,838 14,435,426 July 1, 2020 12,778,775 1,474,139 14,252,914 12,778,775 1,294,828 14,073,603 12,778,775 1,299,175 14,077,950 12,778,775 1,878,898 14,657,673 12,778,775 1,650,776 14,429,551 12,778,775 1,857,588 14,436,363 July 4, 2021 11,453,262 1,473,639 12,926,901 11,453,262 1,297,078 12,750,340 11,453,262 1,298,675 12,751,937 11,453,262 1,875,898 13,329,160 11,453,262 1,654,026 13,107,288 11,453,262 1,655,838 13,109,100 July 1, 2022 1,465,889 1,465,889 1,287,578 1,287,578 12,906,175 12,906,175 1,865,148 1,865,148 1,645,026 1,645,026 13,261,588 13,261,588 July 1, 2023 1,463,527 1,463,527 1,287,916 1,287,916 2,332,425 2,332,425 1,865,360 1,865,360 1,644,863 1,644,863 6,206,100 6,206,100 July 1, 2024 3,465,477 1,465,477 1,292,703 1,292,703 ° ° 1,864,610 1,864,610 1,644,013 1,644,013 ° 0 July 1, 2025 1,465,289 1,465,289 1,290,853 1,290,853 o °o 1,866,229 1,866,229 1,646,269 1,646,269 0 0 July 1, 2026 1,467,889 1,467,889 1,292,453 1,292,453 0 o 1,869,979 1,869,979 1,646,419 1,646,419 ° 0 July 1, 2027 1,468,046 1,468,046 1,292,297 1,292,297 ° ° 1,870,604 1,870,604 1,649,388 1,649,388 ° 0 July 1, 2028 1,470,671 1,470,671 4,295,322 1,295,322 ° ° 1,872,992 1,872,992 1,649,938 1,649,938 ° ° July 1, 2029 1,470,806 4,470,806 4,296,512 1,296,512 0 0 1,877,239 1,877,239 1,648,256 1,648,256 ° ° July 2, 2030 1,473,371 1,473,371 1,295,807 1,295,807 0 0 1,878,074 1,878,074 1,654,271 1,654,271 ° ° July 1, 2031 4,473,108 1,473,108 1,298,147 1,298,147 o 0 1,880,387 1,880,387 1,652,558 1,652,558 ° o July 1, 2032 1,469,928 1,469,928 1,298,290 1,298,290 o ° 1,878,884 1,878,884 1,653,221 1,653,211 0 ° July 1, 2033 1,479,150 1,479,150 1,296 462 1,296,462 o ° 1,883,970 1,883,970 1,656,339 1,656,339 ° o July 1, 2034 ° 1,297,512 1,297,512 ° 0 1,656,559 1,656,559 o July 1, 2035 0 1,301,296 1,301,296 ° ° 1,658,927 1,658,927 o July 2, 2036 ° 1,302,562 1,302,562 ° ° 1,663,176 1,663,176 ° July 1, 2037 0 1,306,247 1,306,247 ° 0 1,664,028 1,664,028 o July 1, 2038 ° 1,307,083 1,307,083 ° ° 1,666,400 1,666,400 o 11, 29,385,626 140,783, 111,398,275 32,381,714 143,779,989 11: 75, 1375 111,398,275 36,957,797 148,356,072 111,398,275 40,781,911 152,180,186 i: 75_32,257,842_ 143,656,117 a = Mar 8, 2012 3:58 pm Prepared by Western Financial Group (Finance 6.021 AIDEA:BC-25MM2SY) Page | SOURCES AND USES OF FUNDS Battle Creek 25 Million; 25 Y Sources: Bond Proceeds: Par Amount 25,960,000.00 Net Premium 675,883.60 26,635,883.60 Uses: Project Fund Deposits: Project Fund 25,000,000.00 Other Fund Deposits: Reserve/Capitalized Interest Fund 1,633,601.75 Other Uses of Funds: Additional Proceeds 2,281.85 26,635,883.60 Mar 8, 2012 3:58 pm Prepared by Western Financial Group (Finance 6.021 AIDEA:BC-25MM25Y) Page 2 BOND DEBT SERVICE Battle Creek 25 Million; 25 Y Period Annual Ending Principal Coupon Interest Debt Service Debt Service 07/01/2014 155,000 2.750% 985,888.00 1,140,888.00 01/01/2015 490,812.75 490,812.75 06/30/2015 1,631,700.75 07/01/2015 660,000 3.750% 490,812.75 1,150,812.75 01/01/2016 478,437.75 478,437.75 06/30/2016 1,629,250.50 07/01/2016 690,000 4.000% 478,437.75 1,168,437.75 01/01/2017 464,637.75 464,637.75 06/30/2017 1,633,075.50 07/01/2017 720,000 5.000% 464,637.75 1,184,637.75 01/01/2018 446,637.75 446,637.75 06/30/2018 1,631,275.50 07/01/2018 755,000 5.000% 446,637.75 1,201,637.75 01/01/2019 427,762.75 427,762.75 06/30/2019 1,629,400.50 07/01/2019 795,000 5.000% 427,762.75 1,222,762.75 01/01/2020 407,887.75 407,887.75 06/30/2020 1,630,650.50 07/01/2020 835,000 5.000% 407,887.75 1,242,887.75 01/01/2021 387,012.75 387,012.75 06/30/2021 1,629,900.50 07/01/2021 880,000 5.000% 387,012.75 1,267,012.75 01/01/2022 365,012.75 365,012.75 06/30/2022 1,632,025.50 07/01/2022 915,000 2.750% 365,012.75 1,280,012.75 01/01/2023 352,431.50 352,431.50 06/30/2023 1,632,444.25 07/01/2023 940,000 2.750% 352,431.50 1,292,431.50 01/01/2024 339,506.50 339,506.50 06/30/2024 1,631,938.00 07/01/2024 965,000 2.875% 339,506.50 1,304,506.50 01/01/2025 325,634.63 325,634.63 06/30/2025 1,630,141.13 07/01/2025 995,000 3.000% 325,634.63 1,320,634.63 01/01/2026 310,709.63 310,709.63 06/30/2026 1,631,344.26 07/01/2026 1,025,000 3.125% 310,709.63 1,335,709.63 01/01/2027 294,694.00 294,694.00 06/30/2027 1,630,403.63 07/01/2027 1,060,000 3.250% 294,694.00 1,354,694.00 01/01/2028 277,469.00 277,469.00 06/30/2028 1,632,163.00 07/01/2028 1,095,000 3.350% . 277,469.00 1,372,469.00 01/01/2029 259,127.75 259,127.75 06/30/2029 1,631,596.75 07/01/2029 1,130,000 3.450% 259,127.75 1,389,127.75 : 01/01/2030 239,635.25 239,635.25 06/30/2030 1,628,763.00 07/01/2030 1,175,000 3.550% 239,635.25 1,414,635.25 01/01/2031 218,779.00 218,779.00 06/30/2031 1,633,414.25 07/01/2031 1,215,000 3.650% 218,779.00 1,433,779.00 01/01/2032 196,605.25 196,605.25 06/30/2032 1,630,384.25 07/01/2032 1,260,000 3.720% 196,605.25 1,456,605.25 Mar 8, 2012 3:58 pm Prepared by Western Financial Group (Finance 6.021 AIDEA:BC-25MM25Y) Page 3 BOND DEBT SERVICE Battle Creek 25 Million; 25 Y Period Annual Ending Principal Coupon Interest Debt Service Debt Service 01/01/2033 173,169.25 173,169.25 06/30/2033 1,629,774.50 07/01/2033 1,310,000 3.800% 173,169.25 1,483,169.25 01/01/2034 148,279.25 148,279.25 © 06/30/2034 1,631,448.50 07/01/2034 1,360,000 3.870% 148,279.25 1,508,279.25 01/01/2035 121,963.25 121,963.25 06/30/2035 1,630,242.50 07/01/2035 1,415,000 3.940% 121,963.25 1,536,963.25 01/01/2036 94,087.75 94,087.75 06/30/2036 1,631,051.00 07/01/2036 1,475,000 4.010% 94,087.75 1,569,087.75 01/01/2037 64,514.00 64,514.00 06/30/2037 1,633,601.75 07/01/2037 1,535,000 4.080% 64,514.00 1,599,514.00 01/01/2038 33,200.00 33,200.00 06/30/2038 1,632,714.00 07/01/2038 1,600,000 4.150% 33,200.00 1,633,200.00 06/30/2039 1,633,200.00 25,960,000 14,821,904.02 40,781,904.02 — 40,781,904.02 Mar 8, 2012 3:58 pm Prepared by Western Financial Group (Finance 6.021 AIDEA:BC-25MM25Y) Page 4 BOND SUMMARY STATISTICS 25 Million; 25 Y Dated Date Delivery Date Last Maturity Arbitrage Yield True Interest Cost (TIC) Net Interest Cost (NIC) All-In TIC Average Coupon Average Life (years) Duration of Issue (years) Par Amount Bond Proceeds Total Interest Net Interest Total Debt Service Maximum Annual Debt Service Battle Creek 07/01/2013 07/01/2013 07/01/2038 3.524188% 3.524188% 3.598077% 3.524188% 3.769990% 15.145 11.312 25,960,000.00 26,635,883.60 14,821,904.02 14,146,020.42 40,781,904.02 1,633,601.75 Average Annual Debt Service 1,631,276.16 Underwriter's Fees (per $1000) Average Takedown Other Fee Total Underwriter's Discount Bid Price 102.603558 Par Average Average Bond Component Value Price Coupon Life Bond Component 25,960,000.00 102.604 3.770% 15.145 25,960,000.00 15.145 All-In Arbitrage TIC TIC Yield Par Value 25,960,000.00 25,960,000.00 25,960,000.00 + Accrued Interest + Premium (Discount) 675,883.60 675,883.60 675,883.60 - Underwriter's Discount - Cost of Issuance Expense - Other Amounts Target Value 26,635,883.60 26,635,883.60 26,635,883.60 Target Date 07/01/2013 07/01/2013 07/01/2013 Yield 3.524188% 3.524188% 3.524188% Mar 8, 2012 3:58 pm Prepared by Western Financial Group (Finance 6.021 AIDEA:BC-25MM2SY) Page 5 BOND PRICING Battle Creek 25 Million; 25 Y Maturity Bond Component Date Amount Rate Yield Price Bond Component: 07/01/2014 155,000 2.750% 1.000% 101.736 07/01/2015 660,000 3.750% 1.100% 105.227 07/01/2016 690,000 4.000% 1.300% 107.918 07/01/2017 720,000 5.000% 1.500% 113.539 07/01/2018 755,000 5.000% 1.620% 116.170 07/01/2019 795,000 5.000% 1.810% 118.060 07/01/2020 835,000 5.000% 2.160% 118.358 07/01/2021 880,000 5.000% 2.430% 118.582 07/01/2022 915,000 2.750% 2.750% 100.000 07/01/2023 940,000 2.750% 2.920% 98.534 07/01/2024 965,000 2.875% 3.087% 98.035 07/01/2025 995,000 3.000% 3.190% 98.117 07/01/2026 1,025,000 3.125% 3.280% 98.370 07/01/2027 1,060,000 3.250% 3.340% 99.000 07/01/2028 1,095,000 3.350% 3.440% 98.952 07/01/2029 1,130,000 3.450% 3.510% 99.270 07/01/2030 1,175,000 3.550% 3.580% 99.620 07/01/2031 1,215,000 3.650% 3.650% 100.000 07/01/2032 1,260,000 3.720% 3.720% 100.000 07/01/2033 1,310,000 3.800% 3.790% 100.082 C 07/01/2034 1,360,000 3.870% 3.860% ——- 100.082 C 07/01/2035 1,415,000 3.940% 3.930% 100.082 C 07/01/2036 1,475,000 4.010% 4.000% 100.081 C 07/01/2037 1,535,000 4.080% 4.070% 100.081 C 07/01/2038 1,600,000 4.150% 4.140% 100.081 C 25,960,000 Dated Date 07/01/2013 Delivery Date 07/01/2013 First Coupon 07/01/2014 Par Amount 25,960,000.00 Premium 675,883.60 Production 26,635,883.60 102.603558% Underwriter's Discount Purchase Price 26,635,883.60 102.603558% Accrued Interest Net Proceeds 26,635,883.60 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING (via electronic media at the Alaska Energy Authority’s Aspen Room) Anchorage, Alaska January 19, 2012 — 10:00 a.m. DRAFT MINUTES 1. CALLTO ORDER Chair Brad Evans called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:00 a.m. on Thursday, January 19, 2012, from the AEA Aspen Conference Room, Anchorage, Alaska to conduct the business of the Committee per the agenda and public notice. 2. ROLL CALL Roll was called by May Clark. The following members were present: John Foutz City of Seward (teleconference) Joe Griffith Matanuska Electric Association Brad Evans Chugach Electric Association Harvey Ambrose Homer Electric Association Henri Dale Golden Valley Electric Association Jim Posey Anchorage Municipal Light & Power Bryan Carey Alaska Energy Authority 3. PUBLIC ROLL CALL Burke Wick, CEA Arthur Miller, CEA Bob Day, HEA Larry Jorgensen, HEA Rick Miller, AML&P Jeff Warner, AML&P Don Zoerb, MEA (teleconference) Kirk Gibson, McDowell, Rackner & Gibson PC (teleconference) Landis Erwin, UA Local 367 Gary Dixon, Swalling & Associates Brian Bjorkquist, Department of Law Kelli Veech, AEA May Clark, AEA 4. PUBLIC COMMENT There were no public comments. RE GN CT A LN LAN TPR Al SO OPAL EE RA BE RA ORR Ie RE AE MOON ae RE NE RN SIL AE CRN ERR Page 1 of 4 BPMC Draft Minutes 1/19/2012 5. AGENDA COMMENTS / MOTION FOR APPROVAL The agenda was approved as amended. Mr. Ambrose added Item 7E “Bradley Lake loss compensation.” 6. APPROVAL OF MEETING MINUTES — JUNE 8, 2011 and JULY 25, 2011 The June 8, 2011 and July 25, 2011 meeting minutes were unanimously approved. 7. NEW BUSINESS 7A. Approval of FY11 Audit Report and Refund Fy11 Budget Surplus to Utilities MOTION: Mr. Posey moved that the Bradley Lake Project Management Committee approve the FY 11 Audit Report and Refund FY11 budget surplus of $1, 183,102.03 to the utilities. Seconded by Mr. Griffith. A roll call vote was taken: City of Seward: Yes Matanuska Electric Association: Yes Chugach Electric Association: Yes Homer Electric Association: Yes Golden Valley Electric Association: Yes Anchorage Municipal Light & Power: Yes Alaska Energy Authority: ‘ Yes The motion passed unanimously. 7B. Adopt Proposed Wheeling Rate Change MOTION: Mr. Posey moved that the Bradley Lake Project Management Committee adopt the proposed wheeling rate change as described in the memorandum and work papers for bills effective January, 2012. Seconded by Mr. Ambrose. A roll call vote was taken: City of Seward: Yes Matanuska Electric Association: Yes Chugach Electric Association: Yes Homer Electric Association: Yes Golden Valley Electric Association: Yes Anchorage Municipal Light & Power: Yes Alaska Energy Authority: Yes The motion passed unanimously. Page 2 of 4 BPMC Draft Minutes 1/19/2012 7C. Update on FERC Land Use Fees Mr. Gibson said the Group (that represents 35-43 percent of all hydroelectric land for dams in the US) filed Reply Comment to FERC on its federal land use fees proposed rule. He provided copies of the Group comment as well as a copy of comments to FERC from the Alaska delegation, Senators Murkowski and Begich — and from Governor Parnell. He said the BPMC has saved well over $100,000 in land use fees not paid to FERC while the matter was pending. The FERC final ruling should be issued by August 2012. Chairman Evans said if the ruling is successful, a thank you letter would be in order to the Alaska delegation on behalf of AEA. 7D. Update on Battle Creek Diversion Mr. Carey said we recently received R&M Consultants’ Preliminary Design Report and 65% level drawings. The diversion dam is 20’ tall and water could be diverted from about May 15 to the end of October to capture 92% of the water. ADF&G’s main concern is the winter flows, which will not be affected. Estimated total cost of project is about $43.5 M. Chair Evans asked Mr. Carey to work up an annual estimated cost for the project. Mr. Carey said the estimated interest rate is 4% and based on gaging data from USGS, HDR estimates 36,000 acre-feet or 36,000-42,000 MWh. The fisheries report will be out and sent to the agencies tomorrow, they have already attended one presentation on it; we have received no negative comments. Following issuance of the fisheries report and as part of the FERC licensing process, an agency meeting will be held February 14, 2012 at HDR’s offices and utility personnel are invited to attend. A helicopter recon will be conducted this summer to identify bear den, goat and eagles nest surveys. A geotechnical investigation (rock drilling) will also be conducted this summer, as well as gathering final terrestrial information. State and federal agencies are working well together on the project. No dwellings will be affected by the project. We should be able to file for the License Amendment in January 2013 and hopefully receive it by mid-2013. 7E. Bradley Lake Loss Compensation - HEA Mr. Day said the contract between Bradley Lake and HEA provides for compensation to HEA for losses of Bradley transmission in the HEA system beginning at project onset. They have issues with the existing methodology; therefore, Electric Power Systems has begun a study which should be available in two weeks. He requested BPMC review the study and make recommendations to the O&D Committee. 8. Committee Reports / Comments A. Operator’s Report — Bob Day Mr. Day introduced Larry Jorgensen, Bradley’s new Power Plant Superintendent, who took questions from the written report provided to the BPMC. Chair Evans asked how the unit responded to the numerous recent intertie trips. Mr. Jorgensen said the new exciters in the power system stabilizers were installed last fall and were also tuned. The unit responded well with no issues and was able to pick up and drop load as needed. Tuning also showed improved unit response. Mr. Day said Bradley’s response to a Beluga trip in November was excellent. The November disaster declaration did not affect the project, plenty of snow will be good for the water pack next year. Mr. Day said EEE OTT ree Page 3 of 4 BPMC Draft Minutes 1/19/2012 rebuilding the transmission line between Anchorage and Quartz Creek will cause numerous extended outages, but all parties are working to coordinate that. Mr. Day referred to the Operator's Report and the problems with the powerhouse overhead bridge crane. Bringing the crane controls into compliance may cost about $400,000, bids are currently being received and they are working with the budget subcommittee on this. Chair Evans suggested budget subcommittee work with the O&D Committee also. The Operator’s Report is part of these minutes. B. Next Meeting Date The FY 2013 Budget must be adopted before the end of March, 2012; therefore, a tentative meeting date of March 16, 2012 will be scheduled. 9. Adjournment The meeting adjourned at 10:43 a.m. BY: Brad Evans, Chair ATTEST: Alaska Energy Authority, Secretary LLL Page 4 of 4 BPMC Draft Minutes 1/19/2012 Bradley Lake Project Management Committee Meeting Friday, March 16, 2012 Agenda Item: 7A MOTION: Move: Second: Move to amend the FY12 capital budget (Schedule A-1) to replace 160 ton Bridge Crane controls as recommended by the O&D and Budget Subcommittees for $271,000. Postpone other FY12 capital projects (Accusonic Flow Meter Monitoring $10,000, Fish Water Valve Actuators $20,000, and Utility Vehicles $11,000) and the R&C project for the Fire Alarm System of $250,000 to the FY13 capital budget. The total FY12 capital budget and R&C project deferrals to FY13 is $291,000. Bradley Lake Project Management Committee Meeting Friday, March 16, 2012 Agenda Item: 7B MOTION: Move that the Bradley Lake Project Management Committee approve the fiscal year 2013 Operating and Capital budget as presented. Move: Second: OVERVIEW OF BUDGET CHANGES BETWEEN PROPOSED AMENDED FY12 AND PROPOSED FY13 FY12 Utility Contributions 16,203,578 Schedule A Increase in projected interest earnings (125,471) Decrease in Non R&C Capital - See A1 for detail (70,375) Increase in debt service 7,200 Decrease in projected arbitrage transfer (10,000) Increase in Operating Reserve 146,052 Increase in R&C Fund Repayment 331,598 Increase in Net Operations (O&M) 413,331 TOTAL INCREASES/DECREASES 692,335 OTHER CHANGES Schedule A Grant revenue for Battle Creek feasibility 500,000 Grant expense for Battle Creek feasibility (500,000) NET OTHER CHANGES 0 FY12 Proposed Amended Budget Expenses over Revenues 144,154 FY13 Utility Contributions 17,040,067 =— BRADLEY LAKE HYDROELECTRIC PROJECT ‘Schedule A FY2009 FY2010 FY2011 FY2012 FY2012 FY2013 AGTUALS ACTUALS: ACTUALS BUDGET PROPOSED) PROPOSED REVENUES, EXPENSES & CHANGES IN SURPLUS AMENDED BUDGET REVENUES UTILITY CONTRIBUTIONS 16,596,797 16,989,106 15,814,310 16,203,578 16,203,578 17,040,067 INTEREST INCOME 1,717,303 1,780,630 1,905,127 4,742,935 1,742,935 4,868,406 OTHER MISC INCOME 4,000 700 0 0 0 0 STATE OF ALASKA BATTLE CREEK FEASIBILITY GRANT 0 0 0 500,000 500,000 0 o 0 o o o ° 18,315,100 18,770,438 17,719,437 18,446,513 16,446,513 18,908,473 EXPENSES OPERATIONS 4,123,107 3,747,849 4,174,014 4,195,189 4,195,189 4,608,520 RENEWALS/REPLACEMENTS (R&C FUND REPAYMENTS) 1,425,893 1,648,712 802,925 1,123,074 1,087,228 1,368,826 NON R&C FUND CAPITAL PURCHASES-SEE A1 168,573 689,454 309,822 361,000 501,000 520,625 GRANT FUNDED PORTION OF BATTLE CREEK FEASIBILITY 0 0 0 500,000 500,000 0 TRANSFER TO (FROM) OPERATING RESERVE 5,000 66,000 97,250 (63,500) (63,500) 82,552 DEBT SERVICE (net of Capital Reserve Reductions) 12,288,950 12,402,072 12,105,450 12,100,750 12,100,750 12,107,950 ARBITRAGE TRANSFER 325,577 216,349 229,976 230,000 230,000 220,000 718,315,100 18,770,436 47,719,437 78,446,513 18,590,667 718,908,473, CURRENT YEAR SURPLUS (DEFICIT) ° 0 0 0 (144,154) ° BEGINNING SURPLUS (DEFICIT) ° ° 0 0 0 0 ENDING SURPLUS (DEFICIT) BALANCE SHEET ASSETS REVENUE FUND OPERATING FUND RECEIVABLE FROM UTILITIES OTHER RECEIVABLES PREPAID EXPENSES LIABILITIES & SURPLUS LIABILITIES PREPAID UTILITY CONTRIBUTION PAYABLE TO UTILITIES R&C REPAYMENT OTHER INFORMATION OPERATING RESERVE * MONTHLY CONTRIBUTIONS, * Required to be 20% of budgeted operating expense 1,851,848 2,149,873 2,225,125 0 0 447,324 972,947 944,100 0 Qo 0 0 oO 0 0 15,077 0 190,270 0 0 9,132 5,640 5,840 0 0 4 135 0 o 260,757 1,453,862 0 0 0 0 0 740,267 1,373,372 0 1,322,357 1,432, 537,901 0 805,402 902,652 1,439,175 1,446,451 1,420,006 2/28/20121 1:28 AMH:\al\KVeech\Bradiey Lakes Hydroelectric Project\Budget\FY13\2013BradleyBdgt Draft 3.xsSchedule A-Budget Summary This will effectively modify the two duplexes from @ 2 dwelling unit to a 4 dwelling unit, this il scale eet nea a thal naptresped.o° panladtlvelmardare echo eee pits in 4 emergency source of power is needed to provide backup power in case of future trouble the normal facilities power. This will provide cost pairs due to fre Originally approved in. in FY11, not completed 20] Originally approved Furniture and beds are aged and in need of repairs and replacement. Several appliances: | i | A ki J PELL /Accusonic Flow Meter Monitoring Unit Replacement ABRIL IEEE 0 Ly a ST UY all lh Page 1 of 4 BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B rc 31-Dec-11 Proposed FY2014 FY2014 FY2012 FY2012 FY2013 BUDGET ACTUAL VARIANCE BUDGET yD BUDGET SUMMARY (A) HEA Annual Operations & Maintenance 2,181,514 1,801,013 380,501 2,262,776 1,072,131 2,431,229 (B) CEA Dispatch and Substation/SVC Maintenance 119,327 153,124 (33,797) 120,000 19,779 133,500 (C) Other O&M and Maintenance Projects 795,085 1,057,274 (262,189) 626,223 123,196 864,987 (D) Insurance Costs 615,340 563,386 51,954 617,090 510,250 614,490 (E) Regulatory Costs 413,674 319,810 93,864 303,500 40,648 303,714 (H) Contingencies 0 oO 0 4,347,920 (F) Administrative Costs 260,600 2/28/2012 11:25 AM HilalNKVeech\Bradley Lakes Hydroelectric Projecf\Budget\FY 13\201 3BradleyBdgt Draft 3.xisSchedule B-Budget Detail Page 2 of 4 BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B FERC 535 - Operation Supervision & Engineering (A) HEA O&M Contract FERC 537 - Hydraulic Expenses {A) HEA O&M Contract (C) Battle Creek FERC 538 - Electric Expenses {A) HEA O&M Contract (C) HEA Clean Generators #1 & #2 FERC 539 - Misc. Hydraulic Power Generation Expenses (A) HEA O&M Contract (C) Repair Microwave Tower Waveguide (C) HEA Circuits and Radio - To Bernice Lake (C) CEA Circuits -Bemice Lake to Anchorage 427,785 20,000 90,000 30,000 254 567,785 434,727 | _133,058 | 4 FERC 540 - Rents (@) Saay ake FERC nduse ees SK newaseh| exons eaes|_ a FERC 541 - Maintenance Supervision & Engineering (A) HEA O&M Contract FERC 542 - Maintenance of Structures (A) HEA O&M Contract (C) Architect Review (09) - Structure Maintenance (11 (C) Replace Hayion w/ FM-200 in Oil Separator RM (C) Engineering/design/scope for Equipment Barn (A) HEA O&M Contract ({C) Battle Creek Feasibility Study (C) Power Tunnel Maintenance (C) Diversion Tunnel Maintenance (C) North Fork Comm Equipment Replacement (C) Nuka Repair FERC 544 - Maintenance of Electric Plant 2/28/2012 11:25 AM Hilall\KVeech\Bradley Lakes Hydroelectric Project\Budget\FY 13\2013BradleyBdgt Draft 3.xisSchedule B-Budget Detail Page 3 of 4 BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B (A) HEA O&M Contract (C) Maint. Study (09)-Replace Control Room Console( FERC 545 - Maintenance of Misc. Hydraulic Plant (A) HEA O&M Contract {C) Automate Fish Water Design (C) Transfer Switch for PT Gatehouse (C) Fish Water Design & Middle Fork Equip. Shack Im FERC 556 - System Contro! & Load Dispatching (A) HEA O&M Contract (A) HEA-Power House PCs & Develop Electronic Ops| (C) SCS Snow Measurement ({C) UAA Seismic monitoring and reporting (C) USGS Streamgauging (C) State of Alaska Permits FERC 562 - Station Expenses (B) CEA SVC/Substation Maintenance Contract (C) Daves Creek SVC Cooling System FERC 571 - Maintenance of Overhead Lines (A) HEA Overhead Line Maintenance (C) Bradley Junction switch removal (H) Contingencies FERC 920 - Administrative Expense (F) AEA Admin Fee AEA Administrative Costs PMC Costs (F) Bradley Lake Audit fees (F) Bradley Lake PMC Legal (F) Bradiey Lake Arbitrage Report (F) Bradiey Lake Trustee fees PMC Costs TOTAL FERC 820 313,249 361,591 | _—(48,342)| 2/28/2012 11:25 AM H:\all\KVeech\Bradley Lakes Hydroelectric Project\Budget\FY 13\2013BradleyBdgt Draft 3.xisSchedule B-Budget Detail Page 4 of 4 BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B FERC 924 - Property Insurance {D) Homer Electric Insurance (C) Battle Creek Feasibility Study {D) Risk Assessment FERC FERC administrative fees (E) FERC Part 12 Inspection (E) Contractual Engineer - FERC license issues (C) Battle Creek Feasibiity Study 2728/2012 11:25 AM H:\all\KVeech\Bradiey Lakes Hydroelectric ProjecfiBudget\FY13\2013BradleyBdgt Draft 3.xdsSchedule B-Budget Detail BRADLEY LAKE MONTHLY UTILITY CONTRIBUTION SCHEDULE C BUDGET FY2012 TOTAL 4,925,892 4,196,724 1,944,432 2,236,092 2,738,400 162,036 PROPOSED BUDGET FY2013 TOTAL 5,180,184 4,413,372 2,044,812 2,351,532 2,879,772 170,400 5) FY2013 Change 254,292 216,648 100,380 115,440 141,372 8,364 ACTUAL ACTUAL PERCENT FY2010 FY2011 POWER PUR‘ E SHARE TOTAL TOTAL CHUGACH ELECTRIC 30.4% 5,164,692 5,276,652 MUNICIPALITY OF ANCHORAGE 25.9% 4,400,184 4,495,572 AEG&T-HEA 12.0% 2,038,692 2,082,888 AEG&T-MEA 13.8% 2,344,500 2,395,320 GOLDEN VALLEY ELECTRIC 16.9% 2,871,156 2,933,400 CITY OF SEWARD 1.0% 169,896 173,580 Rounding 14 2 16,989,106 17,357,414 ACTUAL ACTUAL FY2010 FY2011 PERCENT MONTHLY MONTHLY POWER PURCHASER SHARE AVERAGE AVERAGE CHUGACH ELECTRIC 30.4% 430,391 439,721 MUNICIPALITY OF ANCHORAGE 25.9% 366,682 374,631 AEG&T-HEA 12.0% 169,891 173,574 AEG&T-MEA 13.8% 195,375 199,610 GOLDEN VALLEY ELECTRIC 16.9% 239,263 244,450 CITY OF SEWARD 1.0% 14,158 14,465 100.0% 1,415,760 1,446,451 FY2012 MONTHLY 410,491 349,727 162,036 186,341 228,200 13,503 1,350,298 FY2013 MONTHLY 431,682 367,781 170,401 195,961 239,981 14,200 1,420,006 FY2013 Change 21,191 18,054 8,365 9,620 11,781 697 69,708 2/28/201211:26 AM H\all\KVeech\Bradley Lakes Hydroelectric Project\Budget\FY 13\2013BradleyBdgt Draft 3.xisSchedule C Utility Contrib BRADLEY LAKE R&C FUND DISBURSEMENTS AND REPAYMENTS SCHEDULE D 2,747,761.24 251,092.69 4,946,732.79 cable from dam to powerhouse 232,922.94 17,227.30 143,913.02 1 . 77,281.14 96,905.27 . 95,497.79 86,313.80 675,968.79 675,986.79 887,596.62 887,596,62 41,128,951.43 4,128,951.43 0.00 0.00 ‘650,000.00 1,050,000.00 0.00 0.00 500,000.00 ‘500,000.00 0.00 490,00 300,000.00 300,000.00 0.00 0.00 500,000.00 '500,000,00 0.00 : 0.00 0.00 250,000.00 0.00 ds 0.00 915,000.00 0.00 0.00 Y 0.00 , 0.00 0.00 0.00 316,562.12 59,651.54 238,545.45 2/28/201211:26 AM H:\al\KVeech\Bradiey Lakes Hydroelectric Project\Budget\FY 13\2013BradieyBdgt Draft 3.xdsSchedule D R&C Disb & Repay BRADLEY LAKE BUDGET PROJECTED CASH FLOW BY FUND SCHEDULE G Rev Fund O&M Fund Debt Fund Op Reserve R&C Cap Reserve Total FY2012 Budget Revenues 16,203,578 - 16,203,578 Interest 1,502,935 240,000 1,742,935 Transfer back interest “ t Transfers to O&M (4,195,189) 4,195,189 - - Transfers to Debt Service (12,100,750) 12,100,750 - Payback of R&C Fund (883,074) 883,074 2011 Payables - - - - 2012 O&M Requisitions (4,195,189) (4,195,189) 2012 Capital Requistions (361,000) 361,000 : - - Renewals/Replacements (361,000) - (1,400,000) - (1,761,000) To Excess Eamings fund (230,000) (230,000) Payment of Prior Year Deficit - - Debt Payments (12,100,750) (12,100,750) Increase Op Reserve 63,500 (63,500) - 6/30/2012 Projected Balance 2,225,125 944,100 : 839,152 3,595,317 12,778,775 20,382,470 FY2013 Budget Revenues 17,040,067 - 17,040,067 Interest 1,622,874 245,532 1,868,407 Transfer back interest - . Transfers to O&M (4,608,520) 4,608,520 - - Transfers to Debt Service (12,107,950) 12,107,950 - Payback of R&C Fund (1,123,294) 1,123,294 - O&M Requisitions (4,608,520) (4,608,520) Capital Requistions (520,625) 520,625 - - - Renewals/Replacements (520,625) - (1,565,000) - (2,085,625) To Excess Eamings fund-Arbritrag (220,000) (220,000) Payment of Prior Year Deficit - a Debt Payments (12,107,950) (12,107,950) Decrease Op Reserve (82,552) 82,552 : 6/30/2013 Projected Balance 2,225,126 944,100 - 921,704 3,399,143 12,778,775 20,268,848 Assumption: should be 20.00% For purpose of budget cash flows, July 01 debt service projected 20.00% is assumed to be disbursed on June 30 2/28/201211:26 AM H:\all\KVeech\Bradley Lakes Hydroelectric Project\Budgef\FY 13\201 3BradleyBdgt Draft 3.xisSchedule G-Cash balances BRADLEY LAKE BUDGET PROJECTED INTEREST INCOME SCHEDULE | TOTAL bub-12 12 12 Oct-12 Now-12 Deo-12 Jan-13 Feb-13 Mar-13, A3 3. ADJ Beginning Balance 20,382A68.76 = 20,382,469.76 —21,386,233.31 —21,995,277.11 22,650,406.11 —23,657,557.16 24, 696,584.46 —23,396,638.76 —25,351,411.80 26A58,923.27 27,588,494 73 28,401, 730.98 _29,137,045.25 _29,072,824.71 17,040,087.08 1,423,006.00 1,420,008.00 1,420,006.00 1,420,008.00 1,420,006.00 1,420,008,00 1,420,006.00 1,420,008.00 —1,420,008.00 1,420,008.00 1,420,006.00 1,420,003.08, (2.00) 1,868,408.57 1,029,043.00 100.00 100,00 100.00 100.00 100.00 (647,303.67 400.00 100.00 100.00 100.00 100.00 0.00 0,00 0.00 00 0.00 0.00 4 A73.63. 049.00 1,420, 108.00 4, 108.00 4, 108.00 4 108.00 4 108.00, 267 369.57. 4,420, 108.00 1,420, 108.00, 4, 106.00 4 108.00, 103.08 Disbursements O&M Expenses (4,008,620.88) (508,954.20) (506,837.20) (480,852.00) (276,611.20) (276,511.20) (276,511.20) (307,388.28) (307,388.28) (907,980.28) (400,852.00) (400,882.00) (460,374.83) R&C Fund Disbursement-Sch D ((1,585,000.00) (609,000.00) (200,000.00) (200,000.00) (100,000.00) (65,000.00) 0.00 0.00 0.00 0.00 (100,000.00) (200,000.00) (100,000.00) Debt Service Payment (12, 107,950.00) 0.00 2.00 0.00 0.00 G00 (2,403,875.00) 0.00 0.00 0.00 0.00 0.00 0.00 = (8,703,975.00) ‘SCH A Captal (620,625.00) (109,331.25) (104,125.00) (104,125.00) (36,443.75) (39,567.80) (98,567.50) (6,208.25) (5,208.25) (8,208.25) (23,948.75) (23,948.75) (23,048.75) 0.00 Excess Eamings Transfer (220,000.00) (220,000.00) co aco 0.00 Other Adjuusimeni-Equal Sch G Adjust to Actual Ending Balance Interest Income Projection Estimated Accrued interest 1,673,727.11 131,825.33 135,270.95 138,300.00 145,493.98 151,883.09 143,880.32 166,011.16 162,722.38 166,533.57 174,870.70 178,192.63 164,332.87 Adjust to Actual Received 1 727.14 131,525.33 1; 85 % 00 145,493.98 151,883.99 443,680.32 155,911.18 162,722 38 169,533.57, 174,870.70 178,192.83 184,332.87. 0.00 2/28/201211:26 AM H:\alKVeech\Bradley Lakes Hydroelectric Project\BudgefiF Y13\2013BradieyBdgt Draft 3.xdsSchedule [Interest Inc Bradley Lake Project Management Committee Meeting Friday, March 16, 2012 Agenda Item: 7C MOTION: Move: Second: Move that the Bradley Lake Project Management Committee approve a one year renewal of the contract with Swalling and Associates for audit services for the year ending June 30, 2012 and also approve a 2.8% audit fee increase based on the 2011 CPI index for Anchorage per the 2008 contract. Web Address for Anchorage CPI: http://www.bls.gov/fo9/cpianch.htm Table A. Anchorage CPI-V semi-annual and annual percent changes (not seasonally adjusted) 2006 2007 2008 2009 m0 Dl First Half 15 4 08 15 a) 46 4] 13 7 j 25 28 Second Half 7 2 al 19 0 45 18 Ll 03 10 Unit Statistics: Bradley Lake BPMC Meeting January 11“ - March 8", 2012 Operators Report Generation Unit 1 (MWhrs) Unit 2 (MWhrs) Total (MWhrs) Jan. 2012 18,570 14,760 33,330 Feb. 2012 16,880 13,730 30,610 Hydraulics Lake Level (ft) Usage (ac ft) Fishwater (ac ft) Jan. 2012 1,148.86 34,223 1,268.7 Feb. 2012 1,139.41 31,742 2,065.0 Current Status: Lake level as of March 8 was 1,131.1 feet. This is about 6 feet higher than where the lake was one year ago. Completed annual Switchman training with all Operators. Training was given by Kevin Dunham from CEA. Issued a PO for DCS /Vibration system to Emerson. Emerson’s engineers were on site for 1.5 weeks for system engineering. Held Kick-Off Meeting with Emerson and we are progressing towards pre-outage installation work to start in June, with the balance to be installed during the July Outage. In order for Emerson to meet the schedule some adjustments to the Outage schedule were made, such as starting work on Unit #2 first. Cascade Maintenance Management system in service with all PMs and equipment information transferred from old Mapcon system. Going through first run of PMs to finish cleaning up any data import issues and to update equipment information to current equipment. Setup inventory management and have begun to input inventory data into Cascade. Completed draft budget and presented it to O&D Committee and Budget Committee for review. Made repairs to Loader (alternator failure), Snow plow (damage to attachment tabs), Incinerator (relay and temperature sensor failure). SCADA RTU 15 failing frequently. Resetting it will get it running for a while. Scheduled to be replaced with DCS installation this July. Feb. 29th —- Unit #2 tripped with no lockouts tripped and some conflicting indications. Replaced 86X relay and a Genius block, both of which had failed. Bradley Lake Operator Report Page 1