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HomeMy WebLinkAboutAEA Board Meeting May 11 2006WK xe yt paAIDES /EAASKA Alaska industrial DevelopmentandExportAuthority 10. AGENDA Alaska Energy Authority Board of Directors May 11,2006 @ 10:30 a.m. Anchorage and Juneau,Alaska CALL TO ORDER BOARD OF DIRECTORS ROLL CALL PUBLIC ROLL CALL PUBLIC COMMENTS PRIOR MINUTES -February 24,2006 OLD BUSINESS NEW BUSINESS A.AEA Regulatory Amendment,Resolution No.2006-01 DIRECTOR COMMENTS A.Director's Status Report of AEA Programs and Projects B.Next meeting date BOARD COMMENTS ADJOURNMENT 813 West Northern Lights Boulevard *Anchorage,Alaska 99503-2495www.aidea.org ©907/269-3000 *FAX 907/269-3044 ®Toll Free (Alaska Only)888/300-8534 ©www.akenergyauthority.org SIGN-IN SHEET ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY ALASKA ENERGY AUTHORITY BOARD OF DIRECTORS MEETING May 11,2006 -10:30 a.m. **PLEASE WRITE LEGIBLY** NAME ORGANIZATION LEFF WILL |AMS AEAAtAMyc, NZ OAL tS ALINE CALE LVL iviwwtuig a ayy geuvwik Home Go Back ...Public NoticesOnlinePublicNoticeAIDEAandAEABoardMeetingStateofAlaskaSubmittedby:bimontbriand_fuglestad/08 Date Submitted:05/02/2006 04:29 PM Date Modified:05/02/2006 04:34:43 PM Ak Admin Journal:[not printed] Attachments:No files attached AIDEA and AEA Board Meeting Category:Agency Meetings Department:Commerce Community &Economic Development Publish Date:05/02/2006 Location:Anchorage Coastal District:N/A Body of Notice: Please note that the Board of Directors of the Alaska Industrial Development and Export Authority (AIDEA)and the Alaska Energy Authority (AEA)will hold a board meeting beginning at 10:30 a.m.on Thursday,May 11,2006. The board will convene as AEA and continue in session until recess or adjournment.Immediately upon recess or adjournment the board will convene as AIDEA and continue in session until recess or adjournment.An agenda for the meeting is available by contacting AIDEA at (907)269-3008 or by visiting our website at www.aidea.org. This meeting will be conducted by electronic media pursuant to AS 44.88.050(a)and AS 44.62.310 at the following locations: Alaska Industrial Development and Export Authority Boardroom 813 W.Northern Lights Blvd.,Anchorage,Alaska. The public is invited to attend.The State of Alaska (AIDEA/AEA)complies with Title 1 of the Americans with Disabilities Act of 1990.Persons requiring special modifications to participate should contact (907)269-3008 to make arrangements. Revision History: 05/02/2006 04:29:56 PM by bjmontbriand_fuglestad/08/State/Alaska/US 05/02/2006 04:32:08 PM by bjmontbriand_fuglestad/08/State/Alaska/US 05/02/2006 04:34:43 PM by bjmontbriand_fuglestad/08/State/Alaska/US $$WebClient [Anon] Home Page Notices by:Department}Category|Publish Date http://notes4.state.ak.us/pn/pubnotic.nsf/cc52605f7c 1 56e7a8925672a0060a9 1 b/OcdOb4£7b...5/11/2006 eke |b ALASKAAlcy)eX {=ENERGY AUTHORITYtk*Alaska Industrial DevelopmentandExportAuthority ALASKA ENERGY AUTHORITY BOARD OF DIRECTORS MEETING May 11,2006 -10:30 a.m. Anchorage,Juneau,and Talkeetna,Alaska 1.CALL TO ORDER Chairman Barry called the meeting of the Alaska Energy Authority to order on May 11,2006,at 10:30 a.m.A quorum was established. 2.BOARD OF DIRECTORS ROLL CALL Director present in Anchorage:Mr.Mike Barry (Chairman/Public Member). Directors present in Juneau:Deputy Commissioner Tom Boutin (Designee for the Department of Revenue)and Commissioner Mike Barton (Department of Transportation and Public Facilities). Directors present in Talkeetna:Commissioner Bill Noll (Department of Commerce,Community and Economic Development)and Mr.John Winther (Public Member). 3.PUBLIC ROLL CALL Staff present in Anchorage:Ron Miller (Executive Director),James A.McMillan (Deputy Director- Credit &Business Development),Chris Anderson (Deputy Director-Credit &Business Development),Valorie Walker (Deputy Director-Finance),Karl Reiche (Project Development Manager),Mark Schimscheimer (Project Manager),Mike Harper (Deputy Director-Rural Energy),Sara Fisher-Goad (Financial Analyst),Becky Gay (Project Manager),Brenda Fuglestad (Administrative Manager)and Jeff Williams (Administrative Assistant). Others attending in Anchorage:Brian Bjorkquist and Mike Mitchell (Department of Law). Others attending telephonically:Cindy Cartledge (Wohlforth Johnson Brecht Cartledge & Brooking). 4.PUBLIC COMMENTS There were no public comments. 5.PRIOR MINUTES The February 24,2006 minutes were approved as presented. 6.OLD BUSINESS There was no old business. 813 West Northern Lights Boulevard *Anchorage,Alaska 99503-2495www.aidea.org *907/269-3000 *FAX 907/269-3044 ®Toll Free (Alaska Only)888/300-8534 *www.akenergyauthority.org AEA Board Meeting May 11,2006 Meeting Minutes Page 2 7.NEW BUSINESS 7A.Resolution No.2006-01,A Resolution of the Alaska Energy Authority Relating to the Adoption of New Regulation Relating to Power Cost Equalization (PCE) Mr.Miller reviewed Resolution No.2006-01 stating it revises the Alaska Administrative Code Title 3 by adding Section 107.225,outlining the method the Alaska Energy Authority (AEA)will use to allocate supplemental appropriations to the Power Cost Equalization program made after earlier pro rata reductions. Notice was published in the Anchorage Daily News;mailed to all communities and utilities that receive PCE and the Legislature,including the Administrative Regulation Review Committee and the Legislative Council.The notice was also posted on AEA's website and the state of Alaska's Online Public Notice System.AEA received three written comments in response to the public comment period,which ended May 9,2006:two were from utilities in support of the changes and one from the City of Unalaska who was against the changes.Staff has proposed no revisions to the regulation amendment in response to these comments. Staff recommended approval of Resolution No.2006-01. In response to Board member questions,Ms.Fisher-Goad stated that the change to the regulations will make the administration of the program run smoother and will enable more timely payments to be made to recipients.Staff contacted Ms.Hazen,City of Unalaska,to discuss her concerns.Her concerns were alleviated when it was made clear that with these changes to the regulations,AEA will have the ability to better assist the utilities with regard to retroactive payments. MOTION:Commissioner Boutin moved to approve Resolution No.2006-01.Seconded by Commissioner Barton.There being no discussion,the question was called.A roll call vote was taken and the motion passed with Messrs.Boutin,Barry,and Barton voting yea. (Commissioner Noll and John Winther absent) 8.DIRECTOR'S COMMENTS 8A.Status Report There were no director's comments. 8B.NEXT MEETING DATES Chairman Barry stated that the next AEA meeting will be scheduled pending the next AIDEA board meeting. 9.BOARD COMMENTS There were no board comments. AEA Board Meeting Meeting Minutes 10.ADJOURNMENT Chairman Barry adjourned the meeting at 10:43 a.m. Ihe Looe 7 Miller,Sdcretary May 11,2006 Page 3 xs"IDEN /EALASKA flaska Industrial Development and Export Authoritv ALASKA ENERGY AUTHORITY BOARD OF DIRECTORS MEETING February 24,2006 -1:15 p.m. Anchorage and Juneau,Alaska 1.CALL TO ORDER Chairman Barry called the meeting of the Alaska Energy Authority to order on February 24,2006, at 1:15 p.m.A quorum was established. 2.BOARD OF DIRECTORS ROLL CALL Directors present in Anchorage:Mr.Mike Barry (Chairman/Public Member)and Mark Edwards (Designee for the Department of Commerce,Community and Economic Development). Director present in Juneau:Deputy Commissioner Tom Boutin (Designee for the Department of Revenue). Director present in Petersburg:Mr.John Winther (Public Member). 3.PUBLIC ROLL CALL Staff present in Anchorage:Ron Miller (Executive Director),James A.McMillan (Deputy Director- Credit &Business Development),Valorie Walker (Deputy Director -Finance),Karl Reiche (Project Development Manager),Mark Schimscheimer (Project Manager),Mike Harper (Deputy Director- Rural Energy),Brenda Fuglestad (Administrative Manager)and Jeff Williams (Administrative Assistant). Others attending in Anchorage:Brian Bjorkquist and Mike Mitchell (Department of Law). 4.PUBLIC COMMENTS There were no public comments. 5.PRIOR MINUTES The December 5,2005 minutes were approved as presented. 6.OLD BUSINESS There was no old business. 7.NEW BUSINESS There was no new business. 813 West Northern Lights Boulevard *Anchorage,Alaska 99503-2495www.aidea.org *907/269-3000 *FAX 907/269-3044 ®Toll Free (Alaska Only)888/300-8534 *www.akenergyauthority.org 8A.DIRECTORS COMMENTS e Alaska Intertie Update MOTION:Mr.John Winther moved to go into executive session to discuss negotiation points with the IOC utilities related to the Alaska Intertie Agreement.Seconded by Deputy Commissioner Tom Boutin.There being no discussion,the question was called. A roll call vote was taken and the motion passed 4 yeas and 1 absent with Messrs.Barry, Boutin,Winther and Edwards voting yea (Commissioner Barton absent). EXECUTIVE SESSION -1:17 p.m. The Board reconvened its regular meeting at 2:05 p.m. Roll call was taken and a quorum was established.Chairman Barry advised that the Board had not taken any formal action on the matters discussed while in Executive Session. 8B.NEXT MEETING DATES Chairman Barry stated the next meeting date would be in conjunction with the next AIDEA Board Meeting. 9.BOARD COMMENTS There were no board comments. 10.ADJOURNMENT Chairman Barry adjourned the meeting at 2:06 p.m. Ron Miller,Secretary ALASKA ENERGY AUTHORITY RESOLUTION NO.2006-01 RESOLUTION OF THE ALASKA ENERGY AUTHORITY RELATING TO THE ADOPTION OF NEW REGULATION RELATING TO POWER COST EQUALIZATION (PCE) WHEREAS,pursuant to AS 44.83.080 the Alaska Energy Authority (the "Authority”)may adopt regulations to carry out the purposes of AS 44.83 and AS 42.45; WHEREAS,staff of the Authority has proposed that the Authority's regulations be amended to adopt a new regulation dealing with the allocation of supplemental appropriations to the Power Cost Equalization (PCE)program,as set forth in Exhibit "A”attached to this resolution ("the new PCE regulation”); WHEREAS,the Authority has complied with all of the provisions of AS 44.62 concerning the adoption by the Authority of regulations; WHEREAS,the staff of the Authority has reported to this board the nature and content of the comments received from the public with respect to the new PCE regulation and the Authority has considered these comments;and WHEREAS,it is in the best interest of the Authority that the new PCE regulation be adopted. NOW THEREFORE,BE IT RESOLVED BY THE ALASKA ENERGY AUTHORITY AS FOLLOWS: Section 1.In accordance with AS 44.83.080 the Authority hereby adopts the new PCE regulation. Section 2.The Executive Director of the Authority is hereby authorized to take such actions and file such documents as may be necessary to finalize the new PCE regulation amendment contemplated in this resolution in order to facilitate the filing of the amendments with the office of the Lieutenant Governor. DATED at Anchorage,Alaska,this 11th day of May 2006. H:\Board of Directors\Resolutions and Memos\Resolution Regs adoption PCE.doc EXHIBIT "A” Register ;2006 COMMERCE,COMMUNITY AND EC.DEV. 3 AAC 107 is amended by adding a new section to read: 3 AAC 107.225.Allocation of supplemental appropriations after pro rata reduction.If a supplemental appropriation is received for the power cost equalization program after the authority has made a pro rata reduction under AS 42.45.110(i),the authority will (1)increase the power cost equalization payments to be made to eligible utilities for the rest of the fiscal year on a pro rata basis up to the maximum allowable under AS 42.45.110;and (2)if any money remains after payments are made under (1)of this section,make additional power cost equalization payments to eligible utilities that received reduced payments under AS 42.45.110(i)to restore funding to the maximum allowable under AS 42.45.110 for each month,starting from the most recent month and going back to the beginning of the state fiscal year.(Eff //_,Register__) Authority:AS 42.45.100 AS 42.45.160 AS 44.83.080 AS 42.45.110 AS 42.45.170 [=ALASKAGa)ENERGY AUTHORITY3ouaxesrAlaskaIndustrialDevelopmentandExportAuthority MEMORANDUM TO:Board of Directors Alaska oh AuthorityFROM:Ron MillerExecutive dlls DATE:May 11,2006 SUBJECT:Resolution No.2006-01 Adoption of AEA Regulation Changes Resolution No.2006-01 adopts the amended regulations attached as Exhibit A to the resolution. These amended regulations revise Alaska Administrative Code Title 3 by adding Section 107.225,outlining the method Alaska Energy Authority (AEA)will use to allocate supplemental appropriations to the Power Cost Equalization program (PCE)made after earlier pro rata reductions. AEA widely distributed notice of the proposed revisions and published notice in the Anchorage Daily News on April 7,2006.AEA also mailed notice to all communities and utilities that receive PCE;provided notice to legislators,the Administrative Regulation Review Committee and the Legislative Council;and posted the notice on AEA's website and on the State of Alaska Online Public Notice System.There was no public hearing.The public comment period ended on May 9,2006,at 5:00 p.m. AEA received three written comments on the proposed regulations (copies attached),two from utilities in support of the changes,and one from the City of Unalaska against the changes.No revisions are proposed in response to these comments.This action is not expected to require an increased appropriation. Staff recommends approval of Resolution No.2006-01. 813 West Northern Lights Boulevard *Anchorage,Alaska 99503-2495www.aidea.org *907/269-3000 *FAX 907/269-3044 ®Toll Free (Alaska Only)888/300-8534 ¢www.akenergyauthority.org April 18,2006 Becky Gay,Project Manager Alaska Energy Authority 813 W.Northern Lights Anchorage,Alaska 99503 Re:Proposed Amendments to 3 AAC 107 Dear Ms.Gay, Alaska Village Electric Cooperative wishes to express its support of the regulation changes being proposed by the Alaska Energy Authority. The current directives embodied in the Power Cost Equalization regulations require that credits to PCE recipients be prorated downward when legislative appropriations are insufficient to fully fund those credits.The regulations are silent,however,on how to apply credits that will exceed the requirements for the remainder of the fiscal year, especially funds that are received through supplemental appropriations. |believe that the proposed regulatory changes will correct that matter and will allow the Authority to properly allocate all legislative appropriations for PCE to the recipients in rural Alaska during the fiscal year for which the funds were appropriated. Thank you for the opportunity to comment. Sincerely, Meera Kohler President &CEO 4831 EAGLE STREET *ANCHORAGE,ALASKA *PHONE (907)561-1818 *FAX (907)562-4086 aaprw ava lb Becky Gay From:Becky Gay Sent:Thursday,April 20,2006 11:16 AM To:'Bob Grimm' Ce:Mike Mitchell;Ron Miller Subject:RE:PCR Regulations Bob,thanks for your support.I will keep it in the official record,Becky From:Bob Grimm [mailto:bob.g@aptalaska.com] Sent:Wednesday,April 19,2006 8:03 AM To:Becky Gay Subject:PCR Regulations Becky: We support your new regulations on PCE. Bob Grimm Alaska Power &Telephone Company P.O.Box 3222 193 Otto Street Port Townsend,WA 98368 Phone 800-982-0136 x 120 Fax 360-385-7538 Cell 360-301-3636 4/20/2006 CITY OF UNALASKA S P.O.BOX 610 ' UNALASKA,ALASKA 99685-0610 =o (907)581-1251 FAX (907)581-3102 oaMay 1,2006 UNALASKA.ALASKA Alaska Energy Authority Attn:Becky Gay,Project Manager 813 W.Northern Lights Anchorage,AK 99503 VIA FACSIMILE:907-269-3044 Re:Proposed section 3 AAC 107.225 Dear Ms.Gay, The City of Unaluska Electric Uulity has 460 customer accounts that receive PCE credit.Our utility billing software can't calculate adjustments to bills after a monthly billing cycleis completed,$0 any accountchangesafterthecloseofabillingcyclehavetobemademanually. The only way for us to "recalculate and credit customers at the higher level of payments for months previously reimbursed”as the proposed regulation requires would be for us to enter all 460 PCE eligible accounts into an Excel spreadshcet to calculate the adjustment and then manually enter the adjustments into each of the 460 individual invoice records.We would have to repeat the process for each mouth that was effected,For example,if arate change was to be effective for 3 previous months we would have to make 1,380 manual cntrics into the billing records. In addition,there is the issue of customers who change locations or leave the community during the subject time period.Would we have to write them refund checks?Ifso,that would add an additional layer of administrative cost for us. We bclicve that the proposed regulation would put an unfair administrative burden on our small utility,and that the cost of implcmenting it would far outweigh any benefit it might provide.We strongly urge you not to adopt the proposed regulation. Sincerely, ee Catherine Hazen . Sr.Accountant Cc:AB Rankin,City Treasurer J.R.Pearsan,Utility Analyst