The URL can be used to link to this page

Home My WebLink AboutAEA Board Meeting June 6 2005Alaska Industrial Development and Export Authority AID, Alaska Energy Authority 10. AGENDA ALASKA ENERGY AUTHORITY Board of Directors June 6,2005 Anchorage and Juneau,Alaska CALL TO ORDER BOARD OF DIRECTORS ROLL CALL PUBLIC ROLL CALL PUBLIC COMMENTS PRIOR MINUTES -March 29,2005 OLD BUSINESS NEW BUSINESS A.Rural Energy Action Council Update DIRECTOR COMMENTS A.Director's Status Report of AEA Programs and Projects B.Next Meeting Date -Follows AIDEA Board meeting Dates BOARD COMMENTS ADJOURNMENT 813 West Northern Lights Boulevard *Anchorage,Alaska 99503 907 /269-3000 *FAX 907 /269-3044 *Toll Free (ALASKA ONLY)888 /300-8534 *www.aidea.org Alaska Industrial Development and Export Authority ALASKA ENERGY AUTHORITY BOARD OF DIRECTORS June 6,2005,@ 12:20 p.m. Anchorage and Juneau,Alaska 1.CALL TO ORDER Chairman Barry called the meeting of the Alaska Energy Authority to order on June 6,2005,at 12:20 p.m.A quorum was established. 2.BOARD OF DIRECTORS ROLL CALL Directors present in Anchorage:Mr.Mike Barry (Chairman/Public Member),Mr.John Winther (Public Member),and Al Clough (Designee for the Department of Commerce,Community and Economic Development). Directors present in Juneau:Deputy Commissioner Tom Boutin (Designee for the Department of Revenue),and Commissioner Mike Barton (Department of Transportation and Public Facilities). 3.PUBLIC ROLL CALL Staff present in Anchorage:Ronald W.Miller (Executive Director),James A.McMillan (Deputy Director-Credit &Business Development),Valorie Walker (Deputy Director-Finance),Mike Harper (Deputy Director-Rural Energy),Sara Fisher-Goad (AIDEA),Becky Gay (Project Manager),Art Copoulos (Project Manager),Bernie Smith (Project Manager),and Brenda J.Fuglestad (Administrative Manager). Others attending in Anchorage:Brian Bjorkquist and Mike Mitchell (Department of Law),Richard Richtmyer (Anchorage Daily News),Sean Doogan (KTUU),and Margie Bauman (Alaska Journal of Commerce). 4.PUBLIC COMMENTS There were no public comments. 5.PRIOR MINUTES The March 29,2005 AEA board minutes were approved as presented. 6.OLD BUSINESS There was no old business. 813 West Northern Lights Boulevard *Anchorage,Alaska 99503 nas Arn AANN Paw nans traAarn anata 2 w_ttie MAN PANN NEN od AEA Board Meeting June 6,2005 Meeting Minutes Page 2 7.NEW BUSINESS 7A.Rural Energy Action Counsel Update Mike Harper stated that the counsel met and issued a report on April 15,2005.A summary was included with the reading materials and the board members had been sent copies of the full report.The counsel was asked by the Governor to look at the situation in rural Alaska and come up with recommendations that could be implemented in the short-term with regard to improving conditions there in terms of energy and access to energy and low-cost alternatives. Mr.Harper summarized this report in stating his list of eleven recommendations;the first and foremost being the full funding of power cost equalization and to fore-fund the PCE Endowment. Other recommendations deal with alternative energy and energy conservation measures.The notion was to increase the limit of that fund which is capped at $300,000.00.Time was spent on how to put co-ops together or try to take advantage of the economies of scale in terms of trying to bring down the costs of diesel.A group called RAFS was formed by the Denali Commission. The Governor's office,with Commissioner Blatchford and Al Clough,put together a bridge loan program for people not qualified to get loans through the revolving loan fund. Mr.Harper noted that they talked about alternatives such as coal and in-stream generators that APT is looking at in Eagle,Alaska.There was discussion of a program called Y.E.for Low Income Home Energy Assistance.This program provides individual grants for low income people.It has about $9 million annually,$6 million through the state,$3 million through native organizations.There were other recommendations (long-term in nature)such as setting up regional energy centers at rural campuses for the University of Alaska,anticipating moving the information from central offices in Anchorage and Juneau out to the hubs,and hopefully to the smaller communities where they can use this information. Chairman Barry expressed the need to coordinate between Alaska Housing Finance Corporation,the Denali Commission,and AEA so that the maximum benefit from manpower gets out to the rural areas. In response to Board questions,Mr.Harper stated that the governor requested co-funding and the legislature gave the PCE program $3 million more than normal;which places the program at approximately $18.7 million. Mr.Harper said that immediately after this report came out,there was activity in the legislature about the bulk fuel revolving loan fund but it was decided to pull back and take a look as to what the actual need is for that fund before taking any action.There have also been activities at the federal level which resulted from this report being published. 8A.DIRECTORS COMMENTS Executive Session Mr.Bjorkquist stated that there is proprietary information,strategy,financial,and contractual matters to discuss related to the possible selling of AEA assets.Under the open meetings act a body,such as the AEA Board,can go into executive session for matters the immediate knowledge of which would clearly have an adverse affect on the finances of AEA.The appropriate procedure for doing that is to have a Board member make a motion to go into executive session for that purpose and to vote on that motion. AEA Board Meeting June 6,2005 Meeting Minutes Page 3 MOTION:Commissioner Boutin moved to go into executive session to discuss proprietary information,strategy,financial,and contractual matters related to the possible selling of AEA assets.Seconded by Mr.Winther.There being no discussion, the question was called.A roll call vote was taken and the motion passed with Messrs. Barry,Boutin,Winther,and Barton voting yea;Commissioner Blatchford was absent. EXECUTIVE SESSION:12:33 p.m. The Board reconvened its regular meeting at 1:07 p.m. The Board did not take any formal action on the matters discussed while in Executive Session. 8B.NEXT MEETING DATES Chairman Barry stated the next meeting date would be Monday,July 25,2005. 9.BOARD COMMENTS There were no board comments. 10.ADJOURNMENT Chairma arry adjourned the meeting at 1:08 p.m. fon Miller,Secretary ALASKA ENERGY AUTHORITY BOARD OF DIRECTORS March 29,2005,@ 10:55 a.m. .Anchorage and Juneau,Alaska 1.CALL TO ORDER 'Chairman Barry called the meeting of the Alaska Energy Authority to order on March 29,2005,at 10:55 a.m.A quorum was established. 2.BOARD OF DIRECTORS ROLL CALL Directors present in Anchorage:Mr.Mike Barry (Chairman/Public Member). Directors present in Juneau:Deputy Commissioner Tom Boutin (Designee for the Department of Revenue),Commissioner Mike Barton (Department of Transportation and Public Facilities),and Mr.John Winther (Public Member). 3.PUBLIC ROLL CALL Staff present in Anchorage:Ronald W.Miller (Executive Director),James A.McMillan (Deputy Director-Credit &Business Development),Valorie Walker (Deputy Director-Finance),Brenda J. Fuglestad (Administrative Manager),Becky Gay (Project Manager),Mike Harper (Deputy Director- Rural Energy),Chris Rutz (Procurement Manager),and Art Copoulos (Project Manager). Others attending in Anchorage:Brian Bjorkquist and Mike Mitchell (Department of Law),Ken Vassar (Birch,Horton,Bittner &Cherot),and Margie Bauman (Alaska Journal of Commerce). 4.PUBLIC COMMENTS | There were no public comments. 5.PRIOR MINUTES The January 5,2005 AEA board minutes and January 21,2005 joint AIDEA and AEA board minutes were approved as presented. 6.OLD BUSINESS There was no old business. AEA Board Meeting March 29,2005 Meeting Minutes Page 2 7.NEW BUSINESS 7A.-Resolution No.2005-02,Resolution of the Alaska Energy Authority Relating to the Adoption of an Amendment to the Authority's Regulations,Addressing Protests Mr.Miller stated that the Board previously adopted AEA regulatory amendments via Resolution No.2005-01.This resolution directed the Executive Directorto finalize the relevant regulatory amendments and to file those amendments with the Lieutenant Governor.During that filing process,the Department of Law's regulations attorney requested that we modify the proposed regulation covering procurement protests and appeals.This modification structures the procurement appeal process to more accurately reflect statutory authority that final decision- making of AEA procurement protests rest with the Board and the Board may delegate that authority to the Executive Director.Mr.Mitchell also stated that the matter could then be referred to a mediator or arbitrator for resolution.Mr.Miller and Mitchell briefly reviewed the amended regulations for the Board and referred them to their packet for detailed information.. In response to Board questions,Mr.Rutz stated that.the procurements that would be contemplated under this resolution are only those procurements that would not fall under AS 36.30.An example would be the procurement that AEA performs on behalf of local communities for building powerhouse projects and bulk fuel tank farms where AEA is acting as an agent of the grantee and is procuring things for the grantee not AEA.The funding for these grants come from the Denali Commission and there are federal requirements that AEA is obligated to follow.This resolution would handle claims and disputes that are outside the purview of AS 36.30.This change would allow these disputes to be taken care of through a mediator or arbitrator without going to court. In response to Board questions,Mr.Rutz stated this would not include bulk fuel purchases,just the facilities. Staff recommended approval of Resolution No.2005-02. MOTION:Commissioner Barton moved to approve Resolution No.2005-02.SecondedbyMr.Winther.There being no further discussion,the question was called.A roll call vote was taken and the motion passed with Messrs.Boutin,Barry,Barton,and Winther voting yea (Commissioner Blatchford was absent). Resolution No.2005-03,Resolution of the Alaska Energy Authority Delegating to the Executive Director the Authority to Decide Procurement Protests Mr.Miller stated Resolution No.2005-03 delegates to the Executive Director the authority to make final decisions on protests of AEA procurements up to $250,000 that are not subject to AS 36.30,State Procurement code.The dollar limitation is not required,but staff recommended the limit as a reasonable "ceiling”above which the Board should have input. Staff recommended approval of Resolution No.2005-03. In response to Board questions,Mr.Miller stated the $250,000 number was chosen as it seemed to be a reasonable ceiling. MOTION:Commissioner Barton moved to approve Resolution No.2005-03.Seconded by Mr.Winther.There being no further discussion,the question was called.A roll call AEA Board Meeting March 29,2005 Meeting Minutes Page 3 vote was taken and the motion passed with Messrs.Boutin,Barry,Barton,and Winther voting yea (Commissioner Blatchford was absent). BA.DIRECTORS COMMENTS Mr.Miller stated that staff has been very active in providing support for the Governor's Rural Energy Action Council.The report for this council is due out on April 15,2005. 8B.NEXT MEETING DATES Chairman Barry stated the next board meeting would be held in conjunction with the AIDEA board meeting. 9.|BOARD COMMENTS There were no board comments. 10.ADJOURNMENT Chairman Barry adjourned the meeting at 11:08 a.m.pn te meee Ron Miller,Secretary Alaska Energy Authority (AEA) /=ALASKA>ENERGY AUTHORITY Report on Governor Murkowski's Rural Energy Action Council Presented to AIDEA and AEA Board of Directors June 6,2005 by Mike Harper,Deputy Director of Rural Energy Anchorage,Alaska -cme are a ne 3 en oor a :ae >Rural Energy Action'Council (REAG)==__¢'Créated by Governor.Frank H.Murkowski _\ ee -"ES ye ; -Headquartered at: AIDEA/Alaska Energy Authority 813 W.Northern Lights Boulevard Anchorage,Alaska 99503 '|:ewe and Action RecommendationsforGovernorFrankMurkowski.-||April 15,2005 -_ Governor Murkowski's Directive a Early in February,the Governor requested a report from the group by April 15,2005,onshort-term proposals to reduce the high cost of energy in rural communities. a Build on work done by the Alaska Energy Policy Task Force (EPTF)for the 23rd Legislature in 2003 nm Use other information to devise short-term, practical proposals that reduce cost of energy in rural Alaska. a According to the Governor,"The operativewordinthisgroupis'action'.” Recommendations needed: Mincentives to lower energy delivery costs Oregional supply and distribution centers C1 cooperative fuel purchases C1 power plant operational efficiencies Cconsolidation of energy providers Ola review of Alaska Energy Authority (AEA) programs CKacceleration of renewable energy efforts,and Menergy conservation measures. Executive Summary of Actions o Best strategies and instruments to achieve short term success in lowering the cost of energy: O11 recommendations o Some items of interest that came up during deliberations,but require a longer term: O11 recommendation,others identified REAC o Recommendation 1: oFully Fund PCE i Needed an extra $2.03 -5.03 M in proposed FYO6 budget to reach full funding level. o Recommendation 2: OFront-load the PCE endowment 0$200 M REAC o Recommendation 3: C1 Create a bulk fuel operator technical assistance program oO $300 K o Recommendation 4: FI Including downstream tanks and pipes into upgrades O$1M o Recommendation 5: C1 Support the creation of regional bulk fuel cooperatives oO $400 K 4-4 |an .y 2 A Oo” REAC o Recommendation 6: CM Enable single and cooperative applicants toreceivehigherloanlimitsforthebulkfuel revolving loan program C1 Undetermined.May use existing source. o Recommendation 7: Cilmprove power plant operational efficienciesandremotecapabilities 0$2.8-11.25M REAC o Recommendation 8: 1 Take Aggressive Action:Support Alternative Energy a8a:In Stream Project at Eagle s8b:Natural Gas Transportation System s8c:Accelerate Coal Resource Development Permit Process Eig aS eta REAC Rec.8 con't. 8d:Northwest Alaska Energy Plan 8e:Beluga Coal Field &IGCC Technology on Sf:Wind-Diesel Systems »8g:Wind Turbine Generators,Towers, Control Systems ($3 -$5 M) 10 REAC o Recommendation Q: 1 Take Aggressive Action Supporting Energy Conservation 29a:Village End Use Efficiency ($3.7 M) 2 9b:Electronically controlled units &Heat Recovery s9c:Audit End Use Efficiency Alternatives ($150 -$250 kK) 11 REAC Rec.9 con't. ns 9d:Energy Star -Energy Smart ($80 K) a9Ye:Low Interest Loan Fund n 9f:AHFC Weatherization ($6.5 M) 19g:Water &Sewer Construction Design 12 REAC o Recommendation 10: C1 Continue Low Income Home Energy Assistance Program (LIHEAP)funding and programs 0$150 -250 K o Recommendation 11: Ci Create a new line-item for energy funding for school districts O Undetermined 13 Long Term Recommendations: CM Economic study of impacts of high cost of fuelinruralAlaskaonnetmigrationtourbanAlaska XO Set up regional energy centers on rural Campuses 1 Fund feasibility study to examine links withtheRailbeltEnergyGrid (1 Set up a fuel price reporting system for "non-PCE”communities 1 Divest the State of rural energy infrastructure XO Transportation and distribution systems 14 Alaska Energy Authority (AEA) Visit us on the web at www.aidea.org/aea.htm Toll free number in Alaska only: 1-888-300-8534 /=ALASKA@->ENERGY AUTHORITY 15