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BPMC Meeting July 17 2012
BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING (via electronic media at the Alaska Energy Authority’s Aspen Room) Anchorage, Alaska July 17, 2012 MINUTES 1. CALL TO ORDER Chair Brad Evans called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 9:00 on Tuesday, July 17, 2012, from the AEA Aspen Conference Room, Anchorage, Alaska to conduct the business of the Committee per agenda and public notice. 2. ROLL CALL Roll was called by May Clark. The following members were present: John Foutz City of Seward Joe Griffith Matanuska Electric Association Brad Evans Chugach Electric Association Harvey Ambrose Homer Electric Association Henri Dale Golden Valley Electric Richard Miller Anchorage Municipal Light & Power Bryan Carey Alaska Energy Authority 3. PUBLIC ROLL CALL May Clark AEA Kim Lomen AEA Brian Hickey CEA Burke Wick CEA Bob Day HEA Rick Miller ML&P Jeff Warner ML&P Jim Strandberg AEA Lee Thibert CEA Sara Fisher-Goad AEA Larry Jorgensen HEA (teleconference) 4. PUBLIC COMMENT There were no public comments. 5. AGENDA COMMENTS/MOTION FOR APPROVAL The agenda was approved as amended. 6. Approval of Meeting Minutes — March 16, 2012 The March 16, 2012 meeting minutes were approved as amended. Page 1 of 4 BPMC Minutes 7/17/2012 7. New Business 7A. Review of the Agreements Mr. Griffith said that there are a series of new issues in the Railbelt, such as determining how to support the Susitna-Watana project and the Unconstrained Bradley Lake project. One factor is the O&M services agreement and who runs Bradley Lake. Mr. Griffith suggested that Mr. Gibson review the agreements. The Agreements, which were signed in 1980, may need changes so the committee can fully understand the conditions the project is currently operating under when changes occur at end of 2014. There have been many changes in 20 years so the language of the agreement must be reviewed. A task force must consider the contractual good faith and fair dealing concept; the prudent utility practice; and the obligations and duties of all the agencies involved. Chair Evans said that if there were no more comments he moved to close the discussion and that he would create a task force by Chair edict. He would also consult the BMPC attorney regarding the creation of an ad hoc committee or write a resolution to review the original agreements. 7B. Update on the Battle Creek Diversion Project Mr. Carey said there had been a workshop held with agencies on the environment flows. In early May, Alaska Department of Fish and Game and U.S. Fish and Wildlife reviewed cross sectional transacts of Battle Creek at a low flow rate. Fish and Game has performed two in-stream flow reviews and came to a similar conclusion. Chairman Evans asked if the different agencies reviewing the resources in terms of water flow and salmon spawning would have to consolidate their finds. Mr. Carey said that once the draft conditions are completed by Fish and Game and federal agencies, there will be an opportunity to negotiate conditions for the final license application. After the negotiations are complete, the final license application will be submitted. Mr. Carey said that once the license amendment is received in summer of 2013, the project can go to bid and a site visit will be conducted for the bidders. The successful contractor will have the winter months to gather their equipment and have it mobilized for construction in the 2014 calendar year. However, there will be additional funding needed to cover the increased cost of helicopter drilling. AEA is waiting on additional information from the environmental licensing consultant, but the amount needed will be between $250,000 and $500,000. Originally the project started out with $6 M and $3 M was used to fund the Battle Creek design and licensing. Both the RE fund and BPMC contributed $500,000 bringing the total budget to $4 M, of which roughly $3.4 M has been obligated. There is currently $600,000 of unobligated funding. The cost of additional engineering and licensing to bid is greater than the unobligated amount. Of the $3.4 M between $1.5 M and $2 M has been used for helicopter drilling. The costs for geotechnical work and engineering design amount to about 80% of the original budget. Ms. Fisher-Goad said relocation of existing funds may be the quickest way to obtain the funds needed for 2012. But Mr. Gibson must be consulted to find out the current status of the grants and determine the most logical solution. 7C. Election of Officers MOTION: Mr. Griffith moved for election of Committee Officers with current slate. Mr. Posey seconded the motion. Page 2 of 4 BPMC Minutes 7/17/2012 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. 8. Committee Reports/Comments 8A. Operator’s Report —Larry Jorgensen Mr. Jorgenson said the Lake level as of July 13 was 1,126.3 feet. Mr. Posey asked if annual gate testing was being done to determine if there was any erosion of pipe in the project. Mr. Jorgenson said the lower region is reinforced steel to guard against erosion. Trash collection is done in the penstock at the end of the year to determine if any erosion has occurred and there has not been any substantial trash in the past. There is a large rock trap by the turbines that any eroding concrete would have to jump and that is not likely to happen. There were no other meeting comments. Meeting summary/assignments: e Creation of a task force to review the Agreements. Update language in the agreements and determine the duties and obligations of all participating agencies. e Creation of a special purpose committee to work with AEA to cover upcoming funding shortfall. 8B. Next Meeting Date Based on issues raised in the July 17, 2012 meeting, the next meeting should be held by mid-September. 9. Adjournment The meeting adjourned at 10:00 a.m. pve? ea Evans, eS wren on! Alaska Bfergy Authority, Secretary Page 3 of 4 BPMC Minutes 7/17/2012 Bradley Lake Project Management Committee Meeting ALASKA ENERGY AUTHORITY Regular Meeting - Teleconference Public Notice Bradley Lake Project Management Committee Notice is hereby given that the Bradley Lake Project Management Committee will hold a regular meeting on TuesdayJuly 17, 2012 at 9:00 a.m. For additional information contact Brad Evans, Chairman. This meeting will be conducted by electronic media pursuant to AS 44.62.310 at the following location: Alaska Energy Authority Aspen Conference Room, 813 West Northern Lights Boulevard, Anchorage, Alaska. A teleconference line has been set up for those unable to attend in person. Dial 1-800-315-6338 and enter code 3074#. The public is invited to attend. The State of Alaska (AEA) complies with Title ll of the Americans with Disabilities Act of 1990. Disabled persons requiring special modifications to participate should contact AEA staff at (907) 771-3000 to make arrangements. Attachments, History, Details Attachments Details bs Department: Revision History Category: Created 7/11/2012 6:34:09 AM by mdclark1 Sub-Category: Modified 7/11/2012 2:34:09 PM by mdclark1 Location(s): Project/Regulation #: Publish Date: Archive Date: Events/Deadlines: Commerce, Community and Economic Development Public Notices Anchorage 7/11/2012 7/18/2012 7/17/2012 1:00am BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING (via electronic media at the Alaska Energy Authority’s Aspen Room) Anchorage, Alaska July 17, 2012 DRAFT MINUTES 1. CALL TO ORDER Chair Brad Evans called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 9:00 on Tuesday, July 17, 2012, from the AEA Aspen Conference Room, Anchorage, Alaska to conduct the business of the Committee per agenda and public notice. 2. ROLL CALL Roll was called by May Clark. The following members were present: John Foutz City of Seward Joe Griffith Matanuska Electric Association Brad Evans Chugach Electric Association Harvey Ambrose Homer Electric Association Henri Dale Golden Valley Electric Richard Miller Anchorage Municipal Light & Power Bryan Carey Alaska Energy Authority 3. PUBLIC ROLL CALL May Clark AEA Kim Lomen AEA Brian Hickey Shugech CEA Burke Wick Bob Day ie Me Rick Miller ML&P Jeff Warner ML&P Jim Strandberg AEA Lee Thibert CEA Sara Fisher-Goad AEA Larry Jorgensen HEA (teleconference) Page 1 of 4 BPMC Draft Minutes 7/17/2012 4. PUBLIC COMMENT There were no public comments. 5. AGENDA COMMENTS/MOTION FOR APPROVAL The agenda was approved as amended. 6. Approval of Meeting Minutes — March 16, 2012 The March 16, 2012 meeting minutes were approved as amended. 7. New Business 7A. Review of the Pin Serifoeds Agreement Mr. Griffith said that there are a series of new issues in the Railbelt, such as determining how to support the Susitna-Watana project and the Unconstrained Bradley Lake project. One factor is the O&M services agreement and who runs Bradley Lake. Mr. Griffith suggested that Mr. Gibson review the agreements. The OxhySeqhide Agreements, which were signed in 1980, may need changes so the committee can fully understand the conditions the project is currently operating under when changes occur at end of 2014. There have been many changes in 20 years so e of the agreement utility practice; and the obligations and duties of all the agenci Ber Scucp ¢ CISTKA StH ents he moved to close the discussion and that he would create a task force by Chair edict. He would also consult the BMPC attorney regarding the creation of an ad hoc committee or write’a resolution to review the original agreements. Loop Faye 4 FAR DEAUNGR — toe GRIFAIT. 7B. Update on the Battle Creek Diversion Project. Chair Evans said that if there were no more com Mr. Carey said there had been a workshop with agencies on the environment flows. In early May, Alaska Department of Fish and Game and U.S. Fish and Wildlife reviewed cross sectional transacts of Battle Creek at a low flow rate. Fish and Game has performed two in-stream flow reviews and came to a similar conclusion. vy Chairman Evans asked if the different agencies reviewing the resources in terms of water flow and salmon spawning would have to consolidate their finds. Mr. Carey said that once the draft conditions are completed by Fish and Game and federal agencies, there will be an opportunity to negotiate Page 2 of 4 BPMC Draft Minutes 7/17/2012 HW & Baar. a ltanaenia Pray ws conditions for the final license application. After the negotiations are complete, the final license application will be submitted. Mr. Carey said that once the license amendment is received in summer of 2013, the project can go to bid and a site visit will be conducted for the bidders. The successful contractor will have the winter months to gather their equipment and have it mobilized for construction in the 2014 calendar year. However, there will be additional funding needed to cover the increased cost of helicopter drilling. AEA is waiting on additional information from the environmental licensing consultant, but the amount needed will be between $250,000 and $500,000. Originally the project started out with $6 M and $3 M was used to fund the Battle Creek design and licensing. Both the RE fund and BPMC contributed $500,000 bringing the total budget to $4 M, of which roughly $3.4 M has been obligated. There is currently $600,000 of unobligated funding. The cost of additional engineering and licensing to bid is greater than the unobligated amount. Of the $3.4 M between $1.5 M and $2 M has been used for helicopter drilling. The costs for geotechnical work and engineering design amount to about 80% of the original budget. Ms. Fisher-Goad said relocation of existing funds may be the quickest way to obtain the funds needed for 2012. But Mr. Gibson must be consulted to find out the current status of the grants and determine the most logical solution. 7C. Election of Officers MOTION: Mr. Griffith moved for election of Committee Officers with current slate. Mr. Posey seconded the motion. 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. 8. Committee Reports/Comments 8A. Operator’s Report —Larry Jorgensen Page 3 of 4 BPMC Draft Minutes 7/17/2012 Mr. Jorgenson said the Lake level as of July 13 was 1,126.3 feet. Mr. Posey asked if annual gate testing was being done to determine if there was any erosion of pipe in the project. Mr. Jorgenson said the lower region is re-enforced steel to guard against erosion. Trash collection is done in the penstock at the end of the year to determine if any erosion has occurred and there has not been any substantial trash in the past. There is a large rock trap by the turbines that any eroding concrete would have to jump and that is not likely to happen. Daehn There were no other meeting comments. Kine? Vi _ Meeting summary/assignments: ———— Vv oN e Creation of a task force to review pas ORK Agreements. Update language in the agreements and determine the duties and obligations of all participating agencies. e Creation of a special purpose committee work with AEA to cover upcoming funding shortfall. 8B. Next Meeting Date Based on issues raised in the July 17, 2012 meeting the next meeting should be nef by mid- September. 9. Adjournment The meeting adjourned at 10:00 a.m. BY: Brad Evans, Chair ATTEST: Alaska Energy Authority, Secretary Page 4 of 4 BPMC Draft Minutes 7/17/2012 we < y= ALASKA. @@ED ENERGY AUTHORITY BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING AGENDA Tuesday, July 17, 2012 — 9:00 a.m. (via electronic media at the Alaska Energy Authority’s Aspen Room 813 West Northern Lights Boulevard, Anchorage, AK) Dial 1-800-315-6338, Enter Code 3074# 1. CALLTOORDER 75) 77 Evans 2. ROLL CALL (for Committee members) 3. PUBLIC ROLL CALL (for all others present) 4 PUBLIC COMMENT / >) Add < 5. AGENDA COMMENTS / MOTION FOR APPROVAL ) j ) QAwended 6. APPROVAL OF MEETING MINUTES - mas 6,202 - (pee | Posey. (a rl 7. NEW BUSINESS a\ Discuss O&M Services Evans Update on Battle Creek Diversion Project Carey a. Pech we ~ Uren. — UVent Sib COMMITTEE REPORTS / COMMENTS A. ~Ongq- Sarg Mm Phare B. Next Meeting Date Evans 9. ADJOURNMENT sao Vg aon @ te Youle OdM, /SSne@o eT7e, % née. Oblé sector, aod, — Worl te fest Q Chir Wot o/ Ste oe OS Gas}. Operators Report Jorgensen adda 813 West Northern Lights Boulevard Anchorage, Alaska 99503 T 907.771.3000 Toll Free (Alaska Only) 888.300.8534 F 907.771.3044 Lark yt. J):03 Am. CHECKLIST FOR BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETINGS Meeting Date: 3l tl am Meeting Location: PE A As Pw cn, CONFIRMED/DATE Secure Meeting Date with Bryan Carey *3065 ml Secure Meeting Date with Chairman V Post to the State of Alaska’ ae Notice System ii; il Only May Or Sherrie can do this Send email and fax to all members with meeting date/time/location (ask for documents to be emailed for packet inclusion — including action items with their motions) If their designee will attend instead, they need to send me an email stating so! a Secure meeting room for use (block out 30 minutes pier to meeting to allow for set-up time 1 oT Schedule a teleconference line with GCI (1-800-770-2121) provide them with a reference project (BPMC) and code (your phone extension number) 3004 # le Draft Agenda for Bryan Carey’s review co Send Draft Agenda by email to Chairman for review and approval Gather documents from members OP Aspgt Email packet to members including ‘all attachments (teleconference information/agenda/draft of previous meeting minutes/motions/general handouts) (SEND IN PDF FORMAT!) Print 5 extra copies of the full packet of information and bring to the meeting for those who did not bring their copy Log on to the boardroom computer 30 minutes prior to meeting Page 1 of 1 H:\AEA Projects\Bradley Lake Project\BPMC\BPMC Meetings\Meeting Setup Folder\CHECKLIST for BPMC Meetings.doc BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING (via electronic media at the Alaska Energy Authority’s Aspen Room) Anchorage, Alaska July 17, 2012 DRAFT MINUTES 1. CALL TO ORDER Chair Brad Evans called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 9:00 on Tuesday, July 17, 2012, from the AEA Aspen Conference Room, Anchorage, Alaska to conduct the business of the Committee per agenda and public notice. 2. ROLL CALL Roll was called by May Clark. The following members were present: John Foutz City of Seward Joe Griffith Matanuska Electric Association Brad Evans Chugach Electric Association Harvey Ambrose Homer Electric Association Henri Dale Golden Valley Electric Richard Miller Anchorage Municipal Light & Power Bryan Carey Alaska Energy Authority 3. PUBLIC ROLL CALL May Clark AEA Kim Lomen AEA Brian Hickey Chugach C EA Burke Wick CEA Bob Day MTA Rick Miller ML&P Jeff Warner ML&P Jim Strandberg AEA Lee Thibert CEA Sara Fisher-Goad AEA Larry Jorgensen HEA (teleconference) Page 1 of 4 BPMC Draft Minutes 7/17/2012 4. PUBLIC COMMENT There were no public comments. 5. AGENDA COMMENTS/MOTION FOR APPROVAL The agenda was approved as amended. 6. Approval of Meeting Minutes — March 16, 2012 The March 16, 2012 meeting minutes were approved as amended. 7. New Business 7A. Review of the O&M Services Agreement Mr. Griffith said that there are a series of new issues in the Railbelt, such as determining how to support the Susitna-Watana project and the Unconstrained Bradley Lake project. One factor is the O&M services agreement and who runs Bradley Lake. Mr. Griffith suggested that Mr. Gibson review the agreements. The O&M Service Agreements, which were signed in 1980, may need changes so the committee can fully understand the conditions the project is currently operating under when changes occur at end of 2014. There have been many changes in 20 years so the language of the agreement must be reviewed. A task force must consider the contractual good faith dealing concept; the prudent utility practice; and the obligations and duties of all the agencies involved. Chair Evans said that if there were no more comments he moved to close the discussion and that he would create a task force by Chair edict. He would also consult the BMPC attorney regarding the creation of an ad hoc committee or write a resolution to review the original agreements. 7B. Update on the Battle Creek Diversion Project. Mr. Carey said there had been a workshop with agencies on the environment flows. In early May, Alaska Department of Fish and Game and U.S. Fish and Wildlife reviewed cross sectional of Battle Creek at a low flow rate. Fish and Game has performed two in-stream flow reviews and came to a similar conclusion. Chairman Evans asked if the different agencies reviewing the resources in terms of water flow and salmon spawning would have to consolidate their finds. Mr. Carey said that once the draft conditions are completed by Fish and Game and federal agencies, there will be an opportunity to negotiate Page 2 of 4 BPMC Draft Minutes 7/17/2012 conditions for the final license application. After the negotiations are complete, the final license application will be submitted. Mr. Carey said that once the license amendment is received in summer of 2013, the project can go to bid and a site visit will be conducted for the bidders. The successful contractor will have the winter months to gather their equipment and have it mobilized for construction in the 2014 calendar year. However, there will be additional funding needed to cover the increased cost of helicopter drilling. AEA is waiting on additional information from the environmental licensing consultant, but the amount needed will be between $250,000 and $500,000. Originally the project started out with $6 M and $3 M was used to fund the Battle Creek design and licensing. Both the RE fund and BPMC contributed $500,000 bringing the total budget to $4 M, of which roughly $3.4 M has been obligated. There is currently $600,000 of unobligated funding. The cost of additional engineering and licensing to bid is greater than the unobligated amount. Of the $3.4 M between $1.5 M and $2 M has been used for helicopter drilling. The costs for geotechnical work and engineering design amount to about 80% of the original budget. Ms. Fisher-Goad said relocation of existing funds may be the quickest way to obtain the funds needed for 2012. But Mr. Gibson must be consulted to find out the current status of the grants and determine the most logical solution. 7C. Election of Officers MOTION: Mr. Griffith moved for election of Committee Officers with current slate. Mr. Posey seconded the motion. 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. 8. Committee Reports/Comments 8A. Operator’s Report —Larry Jorgensen Page 3 of 4 BPMC Draft Minutes 7/17/2012 Mr. Jorgenson said the Lake level as of July 13 was 1,126.3 feet. Mr. Posey asked if annual gate testing was being done to determine if there was any erosion of pipe in the project. Mr. Jorgenson said the lower region is re-enforced steel to guard against erosion. Trash collection is done in the penstock at the end of the year to determine if any erosion has occurred and there has not been any substantial trash in the past. There is a large rock trap by the turbines that any eroding concrete would have to jump and that is not likely to happen. There were no other meeting comments. Meeting summary/assignments: e Creation of a task force to review past O&M Agreements. Update language in the agreements and determine the duties and obligations of all participating agencies. e Creation of a special purpose committee work with AEA to cover upcoming funding shortfall. 8B. Next Meeting Date Based on issues raised in the July 17, 2012 meeting the next meeting should be help by mid- September. 9. Adjournment The meeting adjourned at 10:00 a.m. BY: Brad Evans, Chair ATTEST: Alaska Energy Authority, Secretary Page 4 of 4 BPMC Draft Minutes 7/17/2012 BIME May Clark From: Mike Cunningham <Mike_Cunningham@chugachelectric.com> Sent: Wednesday, August 22, 2012 2:30 PM To: May Clark Subject: FW: Audit RFP Selection May, Hang onto this: the language in bold is the motion for the PMC meeting for the auditor selection agenda item. | will get back to you in a little while. Wanted to capture the motion while it still fresh in my mind. Taking care of one last bit of business with the committee before | give you the final go ahead to include it. Thanks. Michael R. Cunningham Chugach Electric Association, Inc. Senior Vice President, C.F.O. E-mail: mike_cunningham@chugachelectric.com Office #: 907-762-4778 Fax #: 907-762-4514 Cell # 907-240-4778 or 907-230-9478 From: Mike Cunningham Sent: Wednesday, August 22, 2012 2:24 PM To: H F. Dale (GVEA); Zoerb, Don; millerre@muni.org; cbuckley@homerelectric.com; Mike Cunningham; Kelli L. Veech Subject: Audit RFP Selection Any changes of heart on your individual decisions on the audit RFP decision? As it stand now, the tally is Swalling & Associates — 3, Go with the majority —- 1 and Mikunda Cottrell - 1.. If it stays that way, | will send the motion to May Clark regarding the “Move that the Bradley Lake Project Management Committee (BPMC) awarding the three year audit services on the Bradley Lake Hydroelectric Project (the project) operating and revenue funds for a three year term engagement with an option to renew for 2 additional years beginning with the fiscal year ending June 30, 2013 to Swalling and Associates.” Michael R. Cunningham Chugach Electric Association, Inc. Senior Vice President, C.F.O. E-mail: mike_cunningham@chugachelectric.com Office #: 907-762-4778 Fax #: 907-762-4514 Cell # 907-240-4778 or 907-230-9478 May Clark From: Sent: To: Subject: Attachments: Importance: (resending with corrected date!) May Clark Friday, July 13, 2012 9:17 AM ‘Ambrose, Harvey’; Brenda Applegate; ‘Brian Bjorkquist'; Bryan Carey; ‘Carrie Buckley’; ‘Cunningham, Mike’; ‘Dale, Henri’; Dawn Baham; ‘Day, Bob’; ‘Divina Portades, CEA’; Don Zoerb; ‘Evans, Brad’; ‘Foutz, John’; ‘Gamble, Teresa’; ‘Gary Dixon, Swalling & Assoc.'; "Gary Kuhn’; ‘Janorschke, Brad’; ‘Jean Schroeder, HEA Secretary’; ‘Jeff Estes, City of Seward’; Jeff Warner; ‘Jim Kingrey, HEA’; ‘Joe Griffith, MEA’; Kelli L. Veech; Kimberly Lomen; ‘Kirk Gibson, McDowell Rackner & Gibson PC’; Larry Jorgensen; ‘Lynn Ragle, Swalling & Associates, CPA’; May Clark; Moira Halbert; ‘Newton, Brian’; ‘Owens, Connie’; ‘Pattie Worrell, MEA Secretary’; ‘Posey, Jim’; ‘Rick Miller, AML&P"; Sara Fisher-Goad; ‘Susan Redlin, Exec. Secretary, GVEA’; 'Wick, Burke’ BPMC Meeting July 17, 2012 - Additional Document Bradley Lake BPMC Operator Report 7-17-12.pdf High Attached is the Operator’s Report for the July 17, 2012 meeting. The meeting begins at 9:00 a.m. at AEA’s offices. If you are unable to attend in person, please dial: 1-800-315-6338, Enter Code 3074# May Clark Executive Assistant State of Alaska ALASKA ENERGY AUTHORITY 771-3074 mclark@aidea.org 813 W. Northern Lights Blvd Anchorage, AK 99503 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) MEETING INSTRUCTIONS Current 03/01/2012 Check State calendar to ensure the meeting date is not a holiday for our office. Secure meeting date with Bryan Carey (*3065) — be sure he is available for the date. Secure meeting date with Chairman (currently Brad Evans @ CEA, Connie at 762-4747 or connie _owens@chugachelectric.com) Post to the State of Alaska’s Online Public Notice System [presently only Shauna and Sherrie can do this] A standard posting is located at: H:\AEA Projects\Bradley Lake Project\BPMC\BPMC Meetings\Advertising\State web page advertisement regular meeting.doc There is also a ‘special’ meeting notice there as well should one become necessary. Change the notice to reflect the new meeting date/time/location/chair. Copy the notice for use when posting to the State’s Online Public Notice System. Open the State of Alaska’s Online Public Notice System: http://www.state.ak.us/ Select Notices tab at the top of page Select By Dept tab Log in (provide your log in username and password) Once logged in, it will show your name as the current user Select Commerce, Community and Economic Development tab Select New Public Notice From here you will enter in all of the information necessary, and when you get to the ‘body of notice’ this is where you will cut and paste in the ad information saved on the h drive noted above. Be sure to review this after you paste it - sometimes it creates an error — verify with a quick review. Once the ad is set, click on the Save & Close tab at the bottom of page. Go back and log out. Go back to the State of Alaska site and review the notice and print a copy for your meeting file. A copy of a completed entry is on the next page. Page 1 of 3 August 23, 2012 H:\AEA Projects\Bradley Lake Project\BPMC\BPMC Meetings\Meeting Setup Folder\BPMC Meeting Setup Guide.doc Home Go Back - 7 7 Pi ti Online Public Notice onetey Laie Project Wamtapmnet State of Alaska Committee Submitted by: smhowell/08 Date Submitted: 09/30/2009 10:44 AM Date Modified: Ak Admin Journal: [not printed) Attachments: No files attached Bradley Lake Project Management Committee Category: Public Notices Department: Commerce Community & Economic Development Publish Date: 09/30/2009 Location: Anchorage Coastal District: N/A Body of Notice: ALASKA ENERGY AUTHORITY Regular Meeting Public Notice Bradley Lake Project Management Committee Notice is hereby given that the Bradley Lake Project Management Committee will hold a regular meeting on Wednesday, October 7, 2009 at 10:00 a.m. For additional information contact Brad Evans, Chairman. This meeting will be conducted by electronic media pursuant to AS 44.88.050(a) and AS 44.62.310 at the following location: Alaska Energy Authority Boardroom, 813 West Northern Lights Boulevard, Anchorage, Alaska; The public is invited to attend. The State of Alaska (AEA) complies with Title I! of the Americans with Disabilities Act of 1990. Disabled persons requiring special modifications to participate should contact AEA staff at (907) 771- 3000 to make arrangements. Revision History: 09/30/2009 10:44:14 AM by smhowell/08/State/Alaska/US $$WebClient [Anon] Home Page Notices by: Departrnent | Category | Publish Date Send an email and fax to all members with the meeting date/time/location (be sure to ask for documents to be emailed for packet inclusion — including action items with their motions). The email addresses are current as of 03/2012 with all of the members who need to receive notices about the BPMC. Outlook has the group listed as: Bradley Lake PMC Members. Secure the meeting room for meeting date/time (allow an extra 30 minutes before the meeting to start the laptop and get logged into the system for recording). Make the necessary changes to the Agenda located at: H:\AEA Projects\Bradley Lake Project\BPMC\BPMC Meetings\Meeting Setup Folder\Agenda.doc Page 2 of 3 August 23, 2012 H:\AEA Projects\Bradley Lake Project\BPMC\BPMC Meetings\Meeting Setup Folder\BPMC Meeting Setup Guide.doc Email Bryan Carey (bcarey@aidea.org) with a DRAFT of the agenda for his review and comments. After getting Bryan’s comments, email the DRAFT agenda to the Chairman for review and approval (brad_evans@chugachelectric.com). Gather any documents from the members. Some may come in via email to you, or check with Bryan to see if he knows of anything that should be added. Set up a folder with the meeting date and BPMC to store documents for that specific meeting. H:\AEA Projects\Bradley Lake Project\BPMC\BPMC Meetings Email the packet to the members including all attachments: (teleconference information/agenda/draft of the previous meeting’s minutes/motions/general handouts). Save all of these documents in a pdf form and attach them that way. Print 5 extra copies of the full packet and bring to the meeting for those who do not bring their copy with them. Print extra copies of any documents you receive the day of the meeting to ensure that all present will get a copy for their packet. Also, scan and email anything you receive the day of the meeting to all members. The day of the meeting: log in on the laptop in the boardroom (log in code/password are on a sticky-note on the computer). Set up a file to record the minutes. Name it: BPMC and the date. Take a final copy of the meeting minutes to be approved. If approved without any changes, have the Chairman sign them. You can also send them to the Chairman for signature — whichever is easier. Have Bryan Carey sign Go to the ‘O’ drive and find the recording. Open a word document and save it in the following folder H:\AEA Projects\Bradley Lake Project\BPMC\BPMC Meetings. Name it the date of the meeting. You can refer to the meeting minutes from previous meetings for the layout. Cut and paste as needed. Page 3 of 3 August 23, 2012 H:\AEA Projects\Bradley Lake Project\BPMC\BPMC Meetings\Meeting Setup Folder\BPMC Meeting Setup Guide.doc May Clark From: May Clark Sent: Tuesday, July 10, 2012 4:15 PM To: Ambrose, Harvey; Brenda Applegate; Brian Bjorkquist; Bryan Carey; Carrie Buckley; Cunningham, Mike; Dale, Henri; Dawn Baham; Day, Bob; Divina Portades, CEA; Zoerb, Don; Evans, Brad; Foutz, John; Gamble, Teresa; Gary Dixon, Swalling & Assoc.; Gary Kuhn; Janorschke, Brad; Jean Schroeder, HEA Secretary; Jeff Estes, City of Seward; Jeff Warner; Jim Kingrey, HEA; Joe Griffith, MEA; Kelli L. Veech; Kimberly Lomen; Kirk Gibson, McDowell Rackner & Gibson PC; Larry Jorgensen; Lynn Ragle, Swalling & Associates, CPA; May Clark; Moira Halbert; Newton, Brian; Owens, Connie; Pattie Worrell, MEA Secretary; Posey, Jim; Rick Miller, AML&P; Sara Fisher-Goad; Susan Redlin, Exec. Secretary, GVEA; Wick, Burke Subject: Bradley PMC Packet Information - July 17, 2012 Meeting Attachments: Agenda.pdf; BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES(DRAFT) 3-16-2012.pdf; BPMC Members Listing with Email Current_rev 7-17-2012.pdf Importance: High Attached for your review are documents for the July 17, 2012 BPMC Meeting. e Agenda e Draft Meeting Minutes — March 16, 2012 Also attached is an updated member roster. Meeting call in information: Dial 1-800-315-6338, Enter Code 3074# If you have other items for inclusion, please email them to me and | will forward them to the Committee prior to the meeting. Please email or call with questions. Thank you, May. May Clark Executive Assistant State of Alaska ALASKA ENERGY AUTHORITY 771-3074 mclark@aidea.org 813 W. Northern Lights Blvd Anchorage, AK 99503 May Clark From: Sent: To: Subject: Attachments: Importance: (resending with corrected date!) May Clark Friday, July 13, 2012 9:17 AM ‘Ambrose, Harvey’; Brenda Applegate; ‘Brian Bjorkquist'; Bryan Carey; ‘Carrie Buckley’; ‘Cunningham, Mike’; ‘Dale, Henri’; Dawn Baham; 'Day, Bob’; ‘Divina Portades, CEA’; Don Zoerb; ‘Evans, Brad’; ‘Foutz, John’; 'Gamble, Teresa’; 'Gary Dixon, Swalling & Assoc.’; ‘Gary Kuhn’; ‘Janorschke, Brad’; ‘Jean Schroeder, HEA Secretary’; ‘Jeff Estes, City of Seward’; Jeff Warner; ‘Jim Kingrey, HEA’; ‘Joe Griffith, MEA’; Kelli L. Veech; Kimberly Lomen; ‘Kirk Gibson, McDowell Rackner & Gibson PC’; Larry Jorgensen; ‘Lynn Ragle, Swalling & Associates, CPA'; May Clark; Moira Halbert; ‘Newton, Brian’; ‘Owens, Connie’; ‘Pattie Worrell, MEA Secretary’; ‘Posey, Jim’; 'Rick Miller, AML&P'; Sara Fisher-Goad; "Susan Redlin, Exec. Secretary, GVEA’; 'Wick, Burke’ BPMC Meeting July 17, 2012 - Additional Document Bradley Lake BPMC Operator Report 7-17-12.pdf High Attached is the Operator’s Report for the July 17, 2012 meeting. The meeting begins at 9:00 a.m. at AEA’s offices. If you are unable to attend in person, please dial: 1-800-315-6338, Enter Code 3074# May Clark Executive Assistant State of Alaska ALASKA ENERGY AUTHORITY 771-3074 mclark@aidea.org 813 W. Northern Lights Blvd Anchorage, AK 99503 j= ALASKA. @@mm> ENERGY AUTHORITY Revised: June 28, 2012 Project Fact Sheet: BRADLEY LAKE HYDROELECTRIC PROJECT CURRENT STATUS: Reservoir level reached minimum at the end of May and has started back up. The reservoir level is below the long term average. Road access to the project site was completed the first week of May by plowing snow drifts. Battle Creek Diversion Project The purpose of this proposed project is to divert glacial water from Battle Creek glacier to Bradley Lake thus increasing the annual energy of Bradley Lake Hydroelectric Project. The energy increase to the Bradley Lake project would be 36,000 — 42,000 MWh per year. The project would include construction of four miles of road, a concrete diversion dam, and two miles of canal to convey the water to Bradley Lake. Engineering design has been completed to the 65% level and a cost estimate performed, which, at this time, is estimated at $43.5 million. A geotechnical investigation involving drilling at the dam site and along the proposed canal route will occur in 2012. Once geotechnical drilling and additional survey work is performed, the design will be finalized and a new cost estimate completed. Aquatic studies were performed on lower sections of Battle Creek during the last two years. No fish @ have been found within several miles of the diversion site, but are present near tidewater. It is thought the project could have a positive impact on salmon through the removal of the summer glacial water and moderation of flows. Terrestrial studies (eagle nest surveys, bear denning, goat surveys) will occur during 2012. The process of amending the FERC license for the Project has started. Agency consultations (Alaska Department of Fish & Game, US Fish & Wildlife Service, National Marine Fisheries) and the public have occurred to inform AEA of concerns and needed studies. Agencies visited Battle Creek and held a scoping meeting in Homer in September 2011. A second meeting with agencies to discuss the aquatic studies performed over the last two years was held February 14. Agencies sent draft license conditions to AEA in March 2012. There were some significant differences between agencies regarding their understanding of the project operations, hydrology, and existing habitat. A site visit for agencies and AEA contractor occurred in early May followed by an agency meeting. AEA is working on a response to agency concerns and questions. The license amendment application will be submitted in late 2012 or early 2013. Construction could occur in FY 2014 if the amendment is completed and permits are received in a timely manner. PROJECT COST: $328 million (original cost plus major capital improvements through June 30, 2011). Excludes project financing costs. Also excludes major maintenance and repair costs. DESCRIPTION: The hydroelectric project has 120 MW of installed capacity and is located 27 air miles southeast of Homer on the Kenai Peninsula. The project consists of a 125 foot high concrete faced, rock @ filled dam structure, three diversion structures, a 3.5 mile long power tunnel and vertical shaft, 813 West Northern Lights Boulevard Anchorage, Alaska 99503 1 907.771.3000 Toll Free (Alaska Only) 888.300.8534 F 907.771.3044 Project Fact Sheet Bradley Lake Hydroelectric Page 2 generating plant, interior substation, 20 miles of transmission line, and substation. Due to its remote location, the project has its own airstrip, boat dock, residential quarters, and utility system. The project is normally automatically operated by remote dispatch by Chugach Electric Association from Anchorage. PURPOSE: The Bradley project provides 5-10% of the annual Railbelt electric power needs at the lowest generation cost. Bradley is most important to the Railbelt electric system during the cold winter months. Demand for both electric power and gas for heat is at its highest. Utilities limited by available gas are able to use Bradley power to meet the high electric demand. SOURCE OF FUNDS: Legislative appropriations and AEA revenue bonds repaid by participating utilities. PARTICIPANTS: Under the Power Sales Agreement, 100% of the project’s capacity has been sold to the power purchasers: Chugach Electric Association, Inc. (30.4%); Municipality of Anchorage (25.9%); Alaska Electric Generation & Transmission Cooperative, Inc. (25.8%) acting on behalf of Homer Electric Association, Inc. (12.0%) and Matanuska Electric Association, Inc. (13.8%); Golden Valley Electric Association, Inc. (16.9%); and City of Seward (1.0%). BENEFITS: Authority ownership assures the Railbelt area of a long-term source of power at a stable cost and promotes economic development in the region. ADDITIONAL BACKGROUND: The power generation potential of Bradley Lake was first studied by the U.S. Corps of Engineers and presented in a report dated March 1955. The project was authorized by Congress in 1962, but, despite its feasibility, federal funds were not available for its construction. The Alaska Energy Authority (then Alaska Power Authority) assumed responsibility for the project in 1982. Preliminary plans and field investigations began in 1982. In April 1984, the Authority submitted an application for license to FERC. The license to construct the project was issued on December 31, 1985. In December 1987, the Authority and the Railbelt utilities entered into a Power Sales Agreement to delineate responsibilities. Project was declared in commercial operation September 1, 1991. Bradley has been producing power for 16 years. Bradley averaged from 1998 to 2010 393,378 MWh a year at less than $.04 per kWh. A Bradley Project Management Committee (BPMC) was formed in 1993 with representatives from each of the power purchasers and Alaska Energy Authority. The BPMC is responsible for the management, operation, maintenance, and improvement of the project, subject to the non-delegable duties of the Alaska Energy Authority. CHECKLIST FOR BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETINGS Meeting Date: Meeting Location: CONFIRMED/DATE Secure Meeting Date with Bryan Carey *3065 Secure Meeting Date with Chairman Post to the State of Alaska’s Online Notice System Only May Or Sherrie can do this Send email and fax to all members with meeting date/time/location (ask for documents to be emailed for packet inclusion — including action items with their motions) !f their designee will attend instead, they need to send me an email stating so! Secure meeting room for use (block out 30 minutes prior to meeting to allow for set-up time Schedule a teleconference line with GCI (1-800-770-2121) provide them with a reference project (BPMC) and code (your phone extension number) Draft Agenda for Bryan Carey’s review Send Draft Agenda by email to Chairman for review and approval Gather documents from members Email packet to members including all attachments (teleconference information/agenda/draft of previous meeting minutes/motions/general handouts) (SEND IN PDF FORMAT!) Print 5 extra copies of the full packet of information and bring to the meeting for those who did not bring their copy Log on to the boardroom computer 30 minutes prior to meeting Page 1 of 1 H:AEA Projects\Bradley Lake Project\BPMC\BPMC Meetings\Meeting Setup Folder\CHECKLIST for BPMC Meetings.doc Agenda Item No. cir oF sewarn Gen F 919 MATANUSKA ELEC ASSOC 14% brad CHUGACH ELEC ASSOC in bro se HOMER ELEC ASSOC. 12% (ssoee GOLDEN VAL ELEC ASSOC’ 917% MUNI LIGHT & POWER-12D 26% ALASKA ENERGY AUTHORITY.8.e4 A=4+ OVER 51% B= AEA CONCUR With A BRADLEY PMC VOTING thrdane. Die Y 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 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING TUESDAY, JULY 17, 2012 @ 9:00 A.M. **PLEASE WRITE LEGIBLY** Organization/email Ilan C PTA mck © Gite. a Brewk the EN CHUGACH torreon neve ® chy adn elec Siw (bse AASEY FW@ C1 oW/. oky ne Kick Gatos KicK@ Med laws com ee Saltit, EA aesge$tib- Ai avinsli BVEKE WICE CHOGACA, BOR2 WI EKE EU OIGHMELE ERIC, El Zod He, BAY GE Homece cre. Coy eh Mes Warnur}o.@ ——. : MlLaP WMs)ler CO@] wun} ore heh thorte chagack 2 leclvie- com — ATTENDANCE — BPMC REGULAR MEETING, January 19, 2012 @ 10:30 AM COMMITTEE MEMBERS ALTERNATE --Brad Evans, Chairman CEA L-Burke Wick —Brad-Janorschke-Vice Chairman HEA Harvey Ambrose pho | Beryah Carey, Secretary/Treasurer AEA Linda MacMillan SF G Ea Brian_Newton GVEA “Henri Dale plore Z_ANames Posey MLP Z-Richard Miller L~ John Foutz 5 re SEW Jeff Estes Gary Kuhn fsx 2— Mike-Gunningnham, CEA Kirk Gibson, McDowell Rackner & Jim Kingrey, HEA prove Gibson PC “Brian Bjorkquist, Dept. of Law AIDEA AEA AIDEA and AEA Staff AIDEA AEA AIDEA and AEA Staff AIDEA AEA AIDEA and AEA Staff Clark, May Hower, Srauma (¢7”\ Veooh-Ketr Petty,-Christel Strandberg, Jim -~ leo i oT B Ua we i BRADLEY 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. 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 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. RRR ER Te TT TT Page 1 of 4 BPMC Draft 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) errr rc _ _ _ _r_r_r_r_crr_c_c_rcrc ccc rer—a—a—X—X—X—X—X—X—X—X—X—a—X—X—XxwXz,- Page 2 of 4 BPMC Draft 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 ———————— Page 3 of 4 BPMC Draft 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 construction 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. rE Ere Page 4 of 4 BPMC Draft 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. ¢ 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: Brad Evans, Chair ATTEST: Alaska Energy Authority, Secretary i EEEEEeEeEeEeEeEeEeESESESESESeSeSESSSeSeSeseseseseseeeeT Page 5 of 4 BPMC Draft Minutes 3/16/2012 Unit Statistics: Bradley Lake BPMC Meeting March 8th, 2012 — July 17%, 2012 Operators Report Generation Unit 1 Unit 1 Unit 2 Unit 2 Total (MWhrs) Availability (MWhrs) Availability (MWhrs) March 15,600 99.56% 16,270 97.88% 31,870 April 14,080 97.67% 15,160 94.54% 29.240 May 14,510 96.47% 14,120 96.77% 28,630 June 16,720 100.00% | 13,890 100.00% 30,610 Hydraulics Avg. Lake Level (ft) Usage (ac ft) Fishwater (ac ft) March 1,128.08 33,099 2,407.1 April 1,115.36 30,742 1,250.3 May. 1,105.97 30,374 1,166.2 June 1,108.84 32,463 24.1 Current Status: Lake level as of July 13 was 1,126.3 feet. The minimum lake level for the water year was reached on May 224 with a level of 1,103.56 feet. Emerson DCS project has progressed from design, kickoff, FAT, to installation currently. Issues were identified during the FAT with regards to DNP 3.0 protocol. These issues were worked out at Nikiski and the installation at Bradley is very similar. VA Tech Governor communications upgrade is scheduled for next week while both Units are offline. Review of our monthly electrical and hydraulic report identified problems that have been resolved with the implementation of a new report and format. Worked with HEA Linemen’s group on updated procedures and information due to the upcoming removal of the Bradley Junction switches. The largest concern was to have a point where an air break can be seen in the insulated substation for LOTO purposes. This can be done externally on the disconnect switches but not on the breakers. Completed Fish Water flow ramp up in May without any issues. Conducted review of trainee applications, aptitude tests, and phone interviews. Andrew Carey was selected for the position. He started on April 30% as an Operator Trainee. Bradley Lake Operator Report Page 1 Work with ML&P Auditors on questions, data requests, and other reviews. Their final report showed Bradley in compliance with no findings. Completed maintenance work on Airport and Barge Dock buildings. Replacing rotted wood, broken windows, rusted-out doors, repainting, and roof repairs. Installed “Ice Crickets” on the Warehouse/Shop, and Crew Quarters buildings to stop damage that has been occurring due to ice sliding off the roofs. Delayed installation of a PD Monitoring system due to vendor pricing, installation labor, and adequate time before outage for delivery. They also have a newer system coming out this fall that has many features we would like to have incorporated into our system. ProComm completed the wireless canopy modules configuration. The first three links are up and running. Which are the ones need to carry RTU information to the DCS. The rest of the links will be installed after the current outage. Ed Parvin from the USGS on site for flow testing and coordination of signals between fish water flow monitor signals and the Below the Dam gauging site. Worked with the USGS for new certified flow curve equations. The reason for the change is that the new DCS does not use matrix style lookup tables like the old SCADA system did. The Kenai Peninsula Borough has put into place new waste disposal rules. We have been working with their Environmental Coordinator to get approval for Bradley. We have approval for all of our wastes except the Incinerator ash. We have to have the ash tested for residual hydrocarbons and trace contaminants before they will accept it. Work on the Overhead Crane controls replacement started on June 17*® and that portion was completed on the 26. The load cells require custom pins to be manufactured and will be installed when received. Load testing and certification of the crane will occur in August. The outage started on July 8t®. We were delayed 2 days due to difficulties in getting people and materials on site. The barge delivery was delayed 5 days. Also, the 4t* of July holiday made it more difficult to get people here to get things started. We are working closely with KECO to regain schedule wherever possible. Annual gate testing for FERC is scheduled on July 19%. Sherwin Williams out of Anchorage will be on site on July 24 to work on the Diversion Tunnel re-coating project. Training & Safety: Qualified Substation Operator annual training completed. First Aid and CPR annual training. Fire Extinguisher inspections completed. Annual Vibration survey completed. Completed annual fire extinguisher inspections. Bradley Lake Operator Report Page 2 PREPARED BY DATE ot 2pm Sd le] pble Connends — “Domed Assn _ og h — ane EkAowvo no moet— St Ay At g Os Ame, or Cle TM. (<N Be- Bette Ct. mineter 1h) QOH -. 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