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Intertie Managment Commitee Meetings 06-30-2014 2
Intertie Management Committee Regular meeting MEETING MINUTES Monday,June 30,2014 Anchorage,Alaska 1.CALL TO ORDER Chair Brad Evans called the meeting of the Intertie Management Committee to order on June 30,2014 at 10:30 a.m.A quorum was established. 2.ROLL CALL FOR COMMITTEE MEMBERS Brad Evans Chugach Electric Association (CEA) Cory Borgeson Golden Valley Electric Association (GVEA) Joe Griffith Matanuska Electric Association (MEA) Jeff Warner Municipal Light &Power (ML&P) Gene Therriault Alaska Energy Authority (AEA) 3.PUBLIC ROLL CALL Burke Wick and Brian Hickey (CEA);Allen Gray,Dan Bishop,and Mike Wright (GVEA);Aung Thuya (ML&P);Kelli Veech,Katherine Beale,and Teri Webster (AEA). 4.AGENDA APPROVAL MOTION:Mr.Griffith made a motion to approve the agenda as presented.Motion seconded by Mr. Therriault.The motion was adopted without objection. 5.APPROVAL OF PRIOR MINUTES -March 11,2014 and May 8,2014 MOTION:Mr.Griffith made a motion to approve the prior minutes of March 11,2014 and May 8, 2014.Motion seconded by Mr.Therriault.The motion was approved unanimously. 6.PUBLIC COMMENTS There were no public comments. 7.NEW BUSINESS 7A.Approval of FY15 Budget The committee members reviewed and discussed at length the line items in the budget. MOTION:Mr.Therriault made a motion to amend the FY15 proposed budget as presented to the following:1)Allocate FERC 924 Property Insurance of $145,000 under MIRCR calculation;2)Reduce FERC 566 Intertie Ground Patrols from $40,000 to $25,000.The motion was seconded by Mr.Griffith.A vote was called and the motion passed unanimously. MOTION:Mr.Therriault made a motion to adopt the FY15 budget of $2,677,780 with the following stipulations:1)Provide greater level of detail for line items FERC 566 -Private Line Telephone Service for AKI SCADA of $110,000;FERC 566 SLMS -Support Contract/Battery Changeout of $60,000; FERC 920 --IMC Administrative Costs of $150,000;2)Direct budget subcommittee to revise budget presentation for improved legibility and comparability for Railbelt budget structure.The motion was seconded by Mr.Griffith.A vote was called and the motion passed unanimously. IMC Meeting Minutes-June 30,2014 Page 1 of 2 7B.Clarification on newest Alaska Intertie Agreement The IOC will be reviewing the list of inconsistencies in terms and misspellings in the approved Second Amended and Restated Alaska Intertie Agreement that was passed in March.They will report back to the IMC with their recommended changes. 7C.IMC /OC Subcommittee Members -Participation by non-IMC members Public participation and subcommittee meetings notices were discussed.The Chair assigned the Tariffs and Regulatory Affairs subcommittee to create a standard for all of the subcommittees to follow. 7D.Level of Detail on Meeting Minutes Members discussed the level of detail in the current IMC meeting minutes.To slim down the meeting minutes,only a brief summary and the action items will be included in future meeting minutes.The audio recording is always available to listen to the full meeting. 7E.Operators Report -IOC The IOC Operator Report was given by Mr.Warner. Mr.Gibson gave an overview of the Memorandum to the IMC regarding Homer Electric Association not being in compliance with the spinning reserve requirements contained in the Railbelt Standards.It was discussed to have the IMC submit to the RCA a Rulemaking petition to have the Reliability Standards enforced to all utilities.The Chair assigned the issue to the Tariffs and Regulatory Affairs subcommittee to create a process on how a non-intertie member joins the pool and pays a fair share of the costs and to include it in the Rulemaking petition. 8.COMMITTEE ASSIGNMENTS Budget committee -Follow through on the motion made with the adoption of the budget. Tariffs and Regulatory Affairs -Create standards for all subcommittees;RCA Rulemaking petition. Operations,Maintenance and Scheduling -Ensure the definitions in the Second Amended and Restated Alaska Intertie Agreement are consistent with the index of definitions. 9.NEXT MEETING DATE Not determined. 10.ADJOURNMENT There being no further business of the IMC,the meeting adjourned at 1:00 p.m. Bradley Evans,Chairman Gene Therriault,Secretary To obtain an audio of the full meeting,contact Teri Webster (AEA)at 907-771-3074. IMC Meeting Minutes-June 30,2014 Page 2 of 2 Intertie Management Committee (IMC)Subcommittee Members Committee Representative Email Address Alternate Alternate email address /Budget Subcommittee: Kirk Warren -AEA (Chair)kwarren@aidea.org Gene Therriault gtherriault@aidea.org Jeff Warner -ML&P warnerja@muni.org Matt Reisterer-MEA mattreisterer@mea.coop Deanna Hracha Deanna.hracha@)mea.coop Cory Borgeson -GVEA chorgeson@)gvea.com Ron Woolf rewoolf@gvea.com Jody Wolfe -CEA jody_wolfe@chugachelectric.com Sherri McKay-Highers sherri_mckay-highers@chugachelectric.com J Dispatch and System Operations Subcommittee: Jeff Warner -ML&P (Chair)warmerja@muni.org Hank Gocke -MEA hank.gocke@mea.coop Eddie Taunton Eddie.taunton@mea.coop Engineering,Relay and Reliability Subcommittee: J Machine Ratings Subcommittee: | Allen Gray -GVEA ajgray@gvea.com Mike Wright mjwright@gvea.com John Johnson -CEA john_johnson@chugachelectric.com Burke Wick burke_wick@chugachelectric.com Bob Day -HEA (Invitee)bday@homerelectric.com Aung Thuya -ML&P (Chair)thuyaac@muni.org Jim Brooks -MEA jim.brooks@mea.coop Robert Wilson Robert.wilson@mea.coop Nathan Minnema -GVEA njminnema@gvea.com Adam Vogel -CEA adam_vogel@chugachelectric.com Ken Langford -ML&P (Chair)langfordkw@muni.org Bruno Urcuyo -MEA bruno.urcuyo@mea.coop Gary Peers Gary.peers@mea.coop Paul Morgan -GVEA pemorgan@)gvea.com Colton Nyland chnyland@gvea.com Dee Fultz -CEA dee_fultz@chugachelectric.com Bob Day -HEA (Invitee)bday@homerelectric.com Jeff Warner -ML&P (Chair)warnerja@muni.org Ken Langford langfordkw@muni.org Kirk Warren -AEA kwarren@aidea.org Gene Therriault gtherriault(@aidea.org Operating Committee Gary Kuhn -MEA gary.kuhn@mea.coop Eddie Taunton Eddie.taunton@mea.coop Allen Gray -GVEA ajpray@gvea.com Dan Bishop drbishop@gvea.com Burke Wick -CEA burke_wick@chugachelectric.com Paul Risse Paul_Risse@chugachelectric.com j Operations,Maintenance and Scheduling Jeff Warner -ML&P (Chair)warnerja@muni.org Jim Brooks -MEA jim.brooks@mea.coop Eddie Taunton Eddie.taunton@mea.coop Subcommittee:Allen Gray -GVEA ajgray@gvea.com Rich Piech Tipiech@gvea.com Bill Bernier -CEA bill_bernter@chugachelectric.com Burke Wick burke _wick@chugachelectric.com 1 of2 6/27/2014 Intertie Management Committee (IMC)Subcommittee Members Committee |Representative Email Address Alternate Alternate email address SCADA and Telecommunications Subcommittee: Russ Lyday -ML&P (Chair)lydayrw@muni.org Keith Paichikoff -GVEA kepalchikoff@gvea.com DJ Carrington -MEA dj carrington@mea.coop Mike Humphrey Mike.humphrey@mea.coop Kirk Warren -AEA kwarren@aidea.org Gene Therriault gtherriault@aidea.org Paul Johnson -CEA paul_johnson@chugachelectric.com Lou Agi -ML&P agile@muni.org Jeff Warner warnerja@muni.org 4 ..Gray Kuhn -MEA gary.kuhn@mea.coop Bruno Urcuyo bruno.urcuyo@mea.coopStandardsComplianceCommitteeAllenGray-GVEA ajgray@gvea.com Lance Roberts ljroberts@gvea.com/.Dee Fultz -CEA dee_fultz@chugachelectric.com Burke Wick burke_wick@chugachelectric.com Jeff Warner -ML&P warnerja@muni.org Ken Langford langfordkw@muni.org Bruno Urcuyo -MEA bruno.urcuyo@mea.coop Gary Kuhn gary kuhn@mea.coop Standards Committee Allen Gray -GVEA ajgray@gvea.com Dan Bishop drbishop@gvea.com Kirk Warren -AEA kwarren@aidea.org Gene Therriault gtherriault@aidea.org Brian Hickey -CEA brian_hickey@chugachelectric.com Ed Jenkin ed_jenkin@chugachelectric.com Aung Thuya -ML&P (Chair)|(_thuyaac@phuni.org J Bruno Urcuyo -MEA bruno.urcuyo@mea.coop Gary Kuhn gary.kuhn@mea.coop System Studies Sub¢ommittee:Colt Nyland -GVEA cbnyland@gvea.com Russ Thornton -CEA tthornton@esgrp.net Jim Cross -HEA (Invitee)jcross@homerelectric.com Anna Henderson -ML&P hendersonac@muni.org Lou Agi agile@muni_org ...David Pease -MEA david .pease@mea.coop Matt Reisterer matt.reisterer@mea.cooptTariffsandRegulatoryAffairsCommitteePaulaAshbridge-GVEA pdashbridge@gvea.com Allen Gray ajgray@gvea.com Mark Johnson -CEA -Chaw mark_johnson@chugachelectric.com Burke Wick burke _wick@chugachelectric.comShddPZArep 2 of2 6/27/2014 IOC Operator Report 6/30/14 1.Alaska Intertie Status Report a.MWH Usage at Douglas Substation i.First quarter 2014:136,375 MWH ii.April 2014:37,278 MWH iii.May 2014:41,843 MWH iv.June 2014 to date:42,358 MWH 2.System operation a.Intertie trips June 18,2014:Healy Breaker HLS1B17 tripped due to a possible voltage relay mis-operation. GVEA found that the SEL 421 relay Overvoltage element at Healy is set to 115%/60 cycles when the SVS is on line (AFS1B18 closed)and 106%/10cycles when the SVS is offline.These settings were not addressed in the EPS study.GVEA reviewing setting 3.Compliance Report a.HEA has unilaterally instituted a spinning policy which does not meet the requirements of AKRES-001-0. b.The lOC unanimously recommends the IMC review the IOC Memorandum dated June 30 4.Alaska Intertie SVC update a.Teeland SVC online December 6,2013 and operating well. i.Software update scheduled for July,2014 b.Gold Hill SVC outage schedule i.Commercial operation June 18,2014 c.Healy SVC outage schedule i.7/7/14 to 7/22/14 5.Intertie Operating Committee a.Teleconference May 19,2014 i.Recommend the IMC approve changes to the Anchorage -Fairbanks Operating Procedures.See attachments A:Motion 2014-05,B: Anchorage-Fairbanks Intertie Operating Procedures and C:Revised Procedures. b.Teleconference June 30,2014 i.See Attachment D:Railbelt Operating and Reliability Standards - Recommend the IMC review the IOC Memorandum dated June 30,2014, RCA Rulemaking -Railbelt Operating and Reliability Standards. c.Teleconference scheduled for July 1,2014.Review recommended changes to the AIA proposed by Henri Dale. 6.Machine Ratings Subcommittee a.Update MRSC online data base 7.Operations,Maintenance and Scheduling Subcommittee 8.Dispatch and System Operations Subcommittee a.Review Operating and Reliability Standards b.Review and provide compliance reporting methodology 9.Budget Subcommittee Attachment A IMC/OC Meeting Motion Date:05/19/2014 Agenda Item:3A .Motion#:2014 -05 Motion:Request the Intertie Operating Committee forward a recommendation to the Intertie Management Committee to approve changes to Section 2.2,System Limitations of the Anchorage - Fairbanks Intertie Operating Procedures provided by the Engineering,Relay and Reliability Subcommittee.See Attachment A. Move:Jeff Warner Second:Burke Wick (Circle one) AEA:_Yes Via Teleconference Pass/Fail CEA:_Yes Via Teleconference Pass/Fail GVEA:Yes Via Teleconference Pass/Fail MEA:Yes Via Teleconference Pass /Fail ML&P:Yes Via Teleconference ass /FailE ch te ceneynny Sena Bae eee ee :«we 7 Aa 'EFINTERTIE,3}Ss).AIRBANny <tea yee 8 Saye ot " Mekmm.wareTeed rt:Fees ings 7SNDpat,OPT5ee,EVIye,WEES ome renews ee pt np ee ee pe 2.2 2.2.1 2.2.2 System Limitations Power Transfer Limitations: The Intertie Studies were based on Pt.NacKenzie area transmission to be 230 kV as shown in Exhibit 2.2.With this arrangement and with the Intertie operated at 138 kV,the power transfer limit on the Intertie was established to be 70 IIV. Later it was foreseen that all the Pt.MacKenzie area transmission lines would not be changed from 138 kV to 230 kV¥.The expected network arrangement at that time is shown in Exhibit 2.3.With this network condition,transfer of 70 fll on the Intertie results in low voltages for HEA loads.Besides tolerating low voltages, there are two possible solutions to this problem.Installation of about 10 NVAR switchable capacitor at Teeland 115 kV bus will correct the Tow voltage problem.Another solution to the low voltage problem is to limit the power transfer to 52 Hil or less. At light system load conditions and low power transfer over the Intertie there may be excessive charging due to submarine cables in Pt.MacKenzie area.The low power transfer over the Intertie may be about 10 MV or less.The computer load flow used zero power transfer condition.Additional shunt reactors may be required in this area.From the system operations point of view, opening and deenergization of the intertie could be one of the temporary solutions. Outage Conditions Gold Hill SVS:During power transfer to Fairbanks,outage of the Gold Hill SVS will not cause automatic separation of the Anchorage and Fairbanks systems.The remaining two SVS will provide adequate voltage support provided that the voltage dispatch on the Fairbanks generators is increased,if required.Otherwise,no special action by the operator is required for continued operation of the interconnected system (Fairbanks Dispatcher should,however, notify the Anchorage dispatcher of the failed SVS). 35- hen the Gold Hil?SVS,both 69 kV lines from Gold Hill to Fairbanks, and the Gold Hill to Ft.Wainwright 138 kV line are out of service, the Gold Hil]transformer should not be left connected to the end of the long Gold Hill-Healy line for an extensive period of time. Healy SVS:A single contigency outage of the Healy SVS will not cause subsequent loss of synchronism and consequently will not automatically open the Healy-Douglas or Healy-Gold Hill line. As discussed,the inadvertent tripping of either the Teeland, Douglas,or Gold Hil?138 kV breaker during this condition will lead to dangerous overvoltages.Therefore it is recommended that: The GVEA operator establish communications with the [Lap operator and (a)notify him of the failure of Healy SVS and (b)make arrangements to redispatch generation and open the tie line at Healy, -Both operators should immediately dispatch generation to reduce flow on Healy-Douglas circuit to 0 Mil. -The GVEA operator should open the tie line breaker at Healy before the Douglas breaker is opened. -The HL&P operator should open the tie line breaker at Douglas. Under certain circumstances such as when either the Gold Hill or Teeland SVS is out of service and there is a high level of power transfer over the intertie,the outage of the Healy SVS will cause the subsequent loss of synchronism between the Anchorage and Fairbanks systems with the consequential automatic opening of the Healy-Douglas circuit and also cause autonatic loss of Healy unit per 1.3.4.Should this happen,the operating procedure for restoring the tie line should be followed. ossi7:BRove.reySEee=%ayrenne4aTeeland SVS:An outage of the Teeland SVS will not cause instability on the interconnected system.But under most circumstances,the following procedure should be followed by the Anchorage systen operator: -Establish communications and notify the Fairbanks operator of the SVS outage. Healy-Douglas tie line may be left in service at discretion of the Anchorage system operator. -Limited transfer of power may be permitted over the tie line at the discretion of the Anchorage system operator and within guidelines established by the operating committee. With a 138 kV Pt.MacKenzie system,a light-load condition in the Anchorage area and low power transfer over the intertie,it may be difficult to control voltage at Pt.MacKenzie (see discussion under power flow).This may ultimately require opening of the interconnection at Teeland. Also,when the Teeland 230 kV breaker is open and the Teeland SVS is out of service,the Teeland 230/138 kV transformer should not be left connected at the end of the long Healy-Teeland 138 kV line for extensive period of time. Generator Outages:The G/C studies have shown that the interconnected system may become unstable when the intertie is loaded 50 fll or higher and there is an outage of a large unit such as the North Pole generator in the Fairbanks area.Although the General Electric studies indicate that the systen may be stable,in order to provide a margin of system security it is recommended that GVEA shed Joad corresponding to the North Pole generator loading when that unit drops out of service and the intertie loading is 50 NW or more, -37- Attachment C Revised procedures 2.2 System Limitations 2.2.1 Power Transfer Limitations Intertie studies using the Railbelt's 2009 PSSE model and associated loads were used to determine theaSmaximumpowertransferlimitforvarioussystemloadingandcSniditions.The transfer limits listedgsanebelowareasmeasuredfromtheDouglasSubstationtowardsHealy.This assumes that Healy #2is not in service. Healy SVC ON 2.2.2 "Outage Conditionssyonvy"aeGoldHillSVS:Yewo.'a=During poweriranster to Fairbanks,outage of the Gold Hill SVS will not cause automaticseparationofthé'anchor ope 'and Fairbanks systems.The remaining two SVS will provideadequatevoltageoutsetprovidedthatthevoltagedispatchontheFairbanksgenerators is increased,if required.Otherwise,no special action by the operator is required for continued operation of the interconnected system (Fairbanks Dispatcher should,however,notify the Anchorage dispatcher of the failed SVS). When the Gold Hill SVS,the 69 kV lines from Gold Hill to Fairbanks,the Gold Hill to Wilson 138 kV line,and the Gold Hill to Ft.Knox 138 kV line are out of service,the Gold Hill transformer Attachment C should not be left connected to the end of the long Gold Hill -Healy line for an extensive period of time. Healy SVS: A single contingency outage of the Healy SVS will not cause subsequent loss of synchronism and consequently will not automatically open the Healy-Douglas or Healy-Gold Hill lines.However, should a Healy,Douglas,or Teeland 138 kV breaker open during a Healy SVS outage,Healywouldexperienceovervoltageconditions.For this rea'the following steps should be takenistshouldtheHealySVSbeoutofservice.aeteON wy-GVEA operator should establish communiations with theMiseOperator and notify him of the outage. $nn aigBs we 8zone1protectionreach.fa .a ot res anxhe* -If Healy 1 is offline,the Fairbanks and Anchorage operators should work on decreasing theaPantsAhintertietransferto66MW.If Healy Lisigsservice,the intertie transfer may be allowed aswe 5 AG nyt es Ws 4 o aut yeemio¥xP avs#t eySe Ce ee ONUndercertain'circumstances.Such as wherthe Gold Hill orTeeland SVSis out of service,theoutageoftheHealySvswillcauseththesubsdatientlossofsynchronismbetweentheAnchorage&and Fairbankssystemswith the'consequential aytomatic opening of the Healy-Douglas line and&<a Eom."alec cause the automatic iosro,the Heal Eeheration units per section 1.3.4.Should thishappen,the operating'procedure'for restoring the tie line should be followed.Nhs Wh s ut VS:VigNoevkNt,be :An outage of theJeelan &SVS will not cause instability on the interconnected system.But under most circumstances*the following procedure should be followed by the Anchorage system operator: -Establish communications and notify the Fairbanks operator of the SVS outage. -Healy-Douglas tie line may be left in service at discretion of the Anchorage system operator. -Limited transfer of power may be permitted over the tie line at the discretion of the Anchorage system operator and within guidelines established by the operating committee. Attachment C With a light load condition in the Anchorage area and low power transfer over the intertie,it may be difficult to control voltage at Pt.MacKenzie (see discussion under power flow).This may ultimately require the opening of the interconnection at Teeland. Also,when the Teeland 230 kV breaker is open and the Teeland SVS is out of service,the Teeland 230/138 kV transformer should not be left on the end of the Healy-Teeland 138 kV line for an extensive period of time. 4,PanifPeesGeneratorOutages:As io Sek a,The G/C studies have shown that the interconnectéd system may become unstable when theya*y NyTo.intertie is loaded 50 MW or higher and there ig an outage of a 'latge unit such as the North PoleQOoeEpgeneratorintheFairbanksarea.Although the General Electric studies:indicate that the systemNaloh.may be stable,in order to provide a margin 'ofSystem security it is recomnivended that GVEAshedloadortriggertheBESScorrespondingtothieNorthPolegeneratorloadingwhenthatunitdropsoutofserviceandtheintertieioiReais50ingenmore. INTERTIE MANAGEMENT COMMITTEE MEMORANDUM TO:Intertie Management Committee FROM:IMC Operating Committee DATE:June 30,2014 RE:RCA Rulemaking -Railbelt Operating and Reliability Standards Each Railbelt Utility,except Homer Electric Association,Inc.(HEA)has adopted the IMC's Railbelt Operating and Reliability Standards (Railbelt Standards).'HEA did not execute the Alaska Intertie Agreement and is therefore outside of the authority of the IMC.The IMC Operating Committee is not privy to all of the operating policies and procedures being used by HEA;however,it does appear that HEA is not operating in accordance with some of the Railbelt Standards that were adopted by the IMC.” Specifically,HEA is not in compliance with the spinning reserve requirements contained in the Railbelt Standards. Spinning Reserve Requirements One of the specific standards that the IMC Operating Committee is aware of whereby HEA is non-compliant involves the amount of spin HEA is providing the interconnected Railbelt System.Since the late-1980s,after Intertie was completed and the utilities began reserve sharing,all Railbelt Utilities have carried spin on the system sufficient to cover the loss of the largest generating unit.Each utility is required to carry spin based on the ratio of their own largest units compared to the largest unit.This has worked well for many years. It is the IMC Operating Committee understanding that since HEA has begun generating power for their own load requirements,HEA is only carrying spin in the amount of 10%of the largest unit on the interconnected Railbelt system.HEA apparently bases its policy on the rationale that its system load is 10%of the total interconnected Railbelt peak system load,which is not clearly defined.As a direct result of HEA's decision to break from the well-established interconnected Railbelt System protocol regarding spinning reserve obligations,the interconnected Railbelt System is at risk of having insufficient spinning reserve due to the application of inconsistent 'The IMC adopted the Railbelt Operating and Reliability Standards for all users of the Alaska Intertie.?The individual utilities that are Members of the IMC have adopted the Railbelt Standards for their respective electrical systems. 4-Memorandum onRCA Rulemaking -Railbelt Operating and Reliability Standards standards.A spinning reserve illustration is attached to this memorandum that illustrates the appropriate level of spinning reserve under IMC adopted standards for all Railbelt Utilities including:1)at the level HEA is currently providing spinning reserve for the interconnected Railbelt System;and 2)the level HEA would provide if it followed the IMC Standards.See Exhibit A.Also attached is a sample spin sheet that HEA publishes every day noting the amount of spinning reserve it provides pursuant to its adopted standard.See Exhibit B.The Exhibits show that the utilities that comprise the IMC are currently making up the difference between the spinning reserve that HEA provides under its policy and the spinning reserve requirements required under the Railbelt Standards. Alternatives for Addressing Issue The issue facing the IMC and the Railbelt Utilities that comprise the IMC is what actions can and should be taken to resolve the issue of the application of inconsistent standards given that HEA outside of the authority of the IMC.The IMC has two basic regulatory paths available to have this matter addressed by the Regulatory Commission of Alaska (RCA):Rulemaking petition or the filing of a Complaint.Both paths have pros and cons.The Rulemaking could prove to be an industry-wide effort;whereas,the Complaint process will have more limited participation.The rulemaking should be less contentious.The complaint process would more than likely bring the matter to a decision quicker than the rulemaking process.Once the rulemaking process was completed,there would be industry-wide standards that the RCA would enforce. Recommended Solution -Rulemaking Petition at RCA Discussions by and between the counsel to the IMC Member Utilities concluded that a filing of a rulemaking petition by the IMC requesting the RCA to address the need for consistency with respect to the operating and reliability standards used throughout the interconnected Railbelt system would be the best approach.The next issue for the IMC to consider is whether the scope of the rulemaking effort should address the spinning reserve issue,or include the entire set of Railbelt Standards.There are pros and cons to both approaches. A rulemaking proceeding may take up to two (2)years.AS 42.05.175(e)requires that the Regulatory Commission of Alaska issue a final order in a rule-making proceeding not later than 730 days from the date the order initiating rulemaking is issued.In that any standards adopted would govern the interconnected Railbelt,it is likely that the RCA would only give weight to the issues raised by HEA,City of Seward, and the IMC Member Utilities in its deliberations.A rulemaking effort that included the entire set of Railbelt Standards would more than likely take the entire two (2)year period,but the result would be that the Railbelt would presumably have a complete set 2-Memorandum onRCA Rulemaking -Railbelt Operating and Reliability Standards of operating and reliability standards.Filing of a more limited petition (i.e.,just spinning reserves)could possibly be completed in a much shorter time but result in just one issue being resolved.However,the most pressing inconsistency would be resolved and the ground work for a fuller discussion of Railbelt wide issues started. Rulemaking Petition -Spinning Reserves The RCA currently has two regulations that address these types of engineering standardsfor jurisdictional utilities to follow with respect to assuring service reliability. They are: 3 AAC 52.470(a)A utility shall construct,maintain,and operate its plant in accordance with accepted engineering practices to reasonably assure service reliability,service quality,and the safety of persons and property. And, 3 AAC 52.470(c)A utility shall normally maintain generating capacity supplemented by the electric power regularly available from other sources, sufficient to meet all reasonable demands for service and provide a reasonable reserve for emergencies.In addition to other standards imposed by the commission,noninterconnected utilities shall maintain,at a minimum,adequate reserve capacity to cover the loss of the utility's largest generating unit.Generating capacity assigned to interruptible customers may be considered for reserve capacity determination. (Emphasis added). More specificity is needed regarding the reserves which an interconnected utility should maintain.Therefore,it is the IMC Operating Committee's recommendation that,at a minimum,the IMC file a petition with the RCA requesting amendment and enhancement of 3 AAC 52.470 to include more specificity regarding the reserve obligations for utilities along the interconnected Railbelt.The request for a rule change could use the current language of 3 AAC 52.470(c)as a foundation and add amending language to address the interconnected utilities with specificity.A rulemaking petition of this scope could request a more expedited treatment given the need for resolution and risk to reliability given the current inconsistent application of spinning reserves. Rulemaking Petition -Railbelt Standards The IMC Operating Committee would like the IMC to consider filing a petition with the RCA requesting amendment of the RCA regulations to include the entire set of Railbelt Standards.The IMC Operating Committee recognizes that this would be a 3-Memorandum onRCA Rulemaking -Railbelt Operating and Reliability Standards longer more complicated process,but would result in a major step forward with the standardization of the operating and reliability standards. Complaint A complaint proceeding may take up to one (1)year.AS 42.05.175(d)requires that the Regulatory Commission of Alaska issue a final order in a formal complaint proceeding not later than 365 days from the date the order initiating the investigation is issued.The IMC,or a group comprised of the individual utilities comprising the IMC could file a Complaint with the RCA alleging that HEA's actions are |violation of 3 AAC 52.470(e)that requires utilities to”...provide a reasonable reserve for emergencies.” The position of the Complainants would be that HEA's actions are jeopardizing the overall safe and efficient operation of the interconnected Railbelt System. Next Steps The IMC Operating Committee will work with IMC Counsel to prepare the Petition in accordance with the IMC's decision regarding the recommendation for a filing at the RCA. 4 -Memorandum onRCA Rulemaking -Railbelt Operating and Reliability Standards EXHIBIT A IMC Operating Committee Memorandum |ENTRY IN GREEN NO ENTRY REQUIRED BOXES ONLY UNIT _|SPIN |USE BIG UNIT UNIT |SPIN ML&P 110 |39 TOOL BELOW 101 34 CEA 107|__37 FOR MLP 407 |33 |MAKE #10%MEA 0 0 |OF BIGGEST 0 O HEA 32]11 UNIT | 70|22 Actual HEA UNIT 70 7)oe WHAT IT SHOULD BE Cooperative,Inc.H,Alaska Electric &Energy D/L-use blanks in cap rc AEEC Spin Sheet 6/2/2014 0106!0200 |0300 |0400}0500]0600 0700 0900]1000]1100]1200]1300]1400]1500]1600]1700}1800}1900!2000!2100}2200]2300]2400}DLS Temperature 42 |40 |39 |37 |35 |36 |34 36 |46 |49 |51 |53 |S47 55 |SS |SB S61 55 |Sa |541 53 |49 |46 Bernice 2 19/4197 119711971197 119/119 19/J19/19/7 19/7 1197 1197 11971197 1197 119711971197 1191197119119 Ol OV OV Op OL of o OY OY OL OV OV OLY Off Of Of/OL/OV OL oL/OL oy /o Bernice 3 25/925 /F25 /125 /]25 /]25 /125 Ps 25/125 /125/925 7425 425 /425 425/425 /125 /§25 425/125 /425 /425 OV 0 OV OL OL OV 0 Oop o//0 OL/0 Oo OY OY OV OL o Oy/0 OV OF /0 Bernice 4 25/425 /025/425 /125/]25/425 25/925 /425 /725/425/]25/125/125 /925/425/125 /425/125/425 /425 /425of/of /of /0|/ol /of /0 A /ol /ol /of /of /ol /of /of "of /of of /of /0]/of "0 "0 Nikiski CT 36/436 /436/336 /136 /136/136 36/936 /136/136 /136/136 /136 /136/436/136/[36 /136 /436/136/]36/}36 34]433]/34]/34]/34)/341/36 35]334/33)/34]433,/321/357 /357 /35h /340/331 /347/33]/32/320 /31 becuse 17/47/27 /917 447/717 /417 34/134 /134/134 /134 /134 /134 434/134 /134/1384/]34 /134/134 7/134 /434NikiskiSTG157/13]/15]/14]/14]/141 /16 19]/20]/20]/20]/20]/19]/21]/21)/215 /207 /200/19)/19]/18]/18]/16 Soldotna 1 48 /148 /148 /148 /148 /148 /]48 /148 /148 /148 /148 /148 /148 /148 /148 /148 /448 14 48 /148 /148 /148 /}48 /448 OLY 0 OLY Oy /Oo OV/O 0 0 OY oY 0 OY OF OL 0 0 Oop OY OL/oO 0 0 Total Gen spin 44 7]4 5 5|5 1 16]17]17]16)17)19}14]14)14]16}17]17}18}20)20]23 0 Purchased Spin 3]3]3]=3f S38}8}8 3]3)3}3]3]3)3]3]3]3f)3]37)Ft fo] Sold Spin Oj;oO;Of Of of Of 0 of oO;oF oO]Of;Of]Of OF Of;OF OF Of OF;OF OF 6Of «OO SILOS -}ee)5 5 5}§7 2 Total 12|15}12)13]13]13]11 21;20]20]19)20]22;17]17]17}191 20{20]21]23)23)26)O Spin Obligation 11]117 11)11]11f 11]#11 11},13}11)11,22)217 117 11)11)11]12)12-23f 12)11]11 Deficiency 6/3/2014 12:08 AM These are mostly "reads"ie dispatcher should enter just before the ramp (ie 5 min til the hour). tTMTACNnmMEent 1D ANCHORAGE-FAIRBANKS INTERTIE OPERATING PROCEDURES DISPATCH 1 en=a=i.d\.abiesWeciacel.Iea:fl'J144ma||||||naP|P|-ho2.2 2.2.1 2.2.2 System Limitations Power Transfer Limitations: The Intertie Studies were based on Pt.tlacKkenzie area transmission to be 230 kV as shown in Exhibit 2.2.With this arrangement and with the Intertie operated at 138 kV,the power transfer limit on the Intertie was established to be 70 Il. Later it was foreseen that al]the Pt.MacKenzie area transnission lines would not be changed from 138 kV to 230 kV.The expected network arrangement at that time is shown in Exhibit 2.3.With this network condition,transfer of 70 Nil on the Intertie results in low voTtages for HEA loads.Besides tolerating low voltages, there are two possible solutions to this problem.Installation of about 10 NVAR switchable capacitor at Teeland 115 kV bus will correct the low voltage problem.Another solution to the low voltage problem is to limit the power transfer to 52 Ill or less. At light system load conditions and low power transfer over the Intertie there may be excessive charging due to submarine cables in Pt.MacKenzie area.The low power transfer over the Intertie may be about 10 Nil or less.The computer load flow used zero power transfer condition.Additional shunt reactors may be required in this area.From the system operations point of view, opening and deenergization of the intertie could be one of the temporary solutions. Qutage Conditions Gold Hil]SVS:During power transfer to Fairbanks,outage of the Gold Hil]SVS will not cause automatic separation of the Anchorage and Fairbanks systems.The remaining two SVS will provide adequate voltage support provided that the voltage dispatch on the Fairbanks generators is increased,if required.Otherwise,no special action by the operator is required for continued operation of the interconnected systen (Fairbanks Dispatcher should,however, notify the Anchorage dispatcher of the failed SYS). gE==SBSBSEBEQLSESSSRSEBESBE&When the Gold Hil?SVS,both 69 kV lines from Gold Hill to Fairbanks, and the Gold Hill to Ft.Wainwright 138 kV line are out of service, the Gold Hill transformer should not be left connected to the end of the long Gold Hill-Healy line for an extensive period of time. Healy SVS:A single contigency outage of the Healy SVS will not cause subsequent loss of synchronism and consequently will not autonatically open the Healy-Douglas or Healy Gold Hill line. As discussed,the inadvertent tripping of either the Teeland, Douglas,or Gold Hil?138 kV breaker during this condition will lead to dangerous overvoltages.Therefore it is recommended that: -The GVEA operator establish communications with the [Lap operator and (a)notify him of the failure of Healy SVS and (b)make arrangements to redispatch generation and open the tie line at Healy. -Both operators should immediately dispatch generation to reduce flow on Healy-Douglas circuit to 0 Mi. -The GVEA operator should open the tie line breaker at Healy before the Douglas breaker is opened. -The ML&P operator should open the tie line breaker at Douglas. Under certain circumstances such as when either the Gold Hil?or Teeland SVS is out of service and there is a high level of power transfer over the intertie,the outage of the Healy SVS will cause the subsequent loss of synchronism between the Anchorage and Fairbanks systems with the consequential automatic opening of the Healy-Douglas circuit and also cause automatic loss of Healy unit per 1.3.4.Should this happen,the operating procedure for restoring the tie line should be followed. - 36- Teeland SVS:An outage of the Teeland SVS will not cause instability on the interconnected system.But under most circumstances,the following procedure should be followed by the Anchorage systen operator: -Establish communications and notify the Fairbanks operator of the SVS outage. Healy Douglas tie line may be left in service at discretion of the Anchorage system operator. Limited transfer of power may be permitted over the tie line at the discretion of the Anchorage system operator and within guidelines established by the operating committee. With a 138 kV Pt.MacKenzie system,a light-load condition in the Anchorage area and low power transfer over the intertie,it may be difficult to control voltage at Pt.MacKenzie (see discussion under power Flow).This may ultimately require opening of the interconnection at Teeland. Also,when the Teeland 230 kV breaker is open and the Teeland SVS is out of service,the Teeland 230/138 kV transformer should not be left connected at the end of the long Healy-Teeland 138 kV line for extensive period of time. Generator Outages:The G/C studies have shown that the interconnected system may become unstable when the intertie is loaded 50 Iii!or higher and there is an outage of a large unit such as the North Pole generator in the Fairbanks area.Although the General Electric studies indicate that the systen may be stable,in order to provide a margin of system security it is recommended that GVEA shed load corresponding to the North Pole generator loading when that unit drops out of service and the intertie loading is 50 NV or more. -37- Attachment C Revised procedures 2.2 System Limitations 2.2.1 Power Transfer Limitations Intertie studies using the Railbelt's 2009 PSSE model and associated loads were used to determine the maximum power transfer limit for various system loading and conditions.The transfer limits listed below are as measured from the Douglas Substation towards Healy.This assumes that Healy #2 is not in service. Healy SVC Healy 1 Intertie Transfer Limit (MW) ON ON 85 ON OFF 85 OFF ON 80 OFF OFF 66 2.2.2.Outage Conditions Gold Hill SVS: During power transfer to Fairbanks,outage of the Gold Hill SVS will not cause automatic separation of the Anchorage and Fairbanks systems.The remaining two SVS will provide adequate voltage support provided that the voltage dispatch on the Fairbanks generators is increased,if required.Otherwise,no special action by the operator is required for continued operation of the interconnected system (Fairbanks Dispatcher should,however,notify the Anchorage dispatcher of the failed SVS). When the Gold Hill SVS,the 69 kV lines from Gold Hill to Fairbanks,the Gold Hill to Wilson 138 kV line,and the Gold Hill to Ft.Knox 138 kV line are out of service,the Gold Hill transformer Attachment C should not be left connected to the end of the long Gold Hill -Healy line for an extensive period of time. Healy SVS: A single contingency outage of the Healy SVS will not cause subsequent loss of synchronism and consequently will not automatically open the Healy-Douglas or Healy-Gold Hill lines.However, should a Healy,Douglas,or Teeland 138 kV breaker open during a Healy SVS outage,Healy would experience over voltage conditions.For this reason,the following steps should be taken should the Healy SVS be out of service. -GVEA operator should establish communications with the ML&P operator and notify him of the outage. -GVEA operator should issue a command to the Healy -Douglas protective relay to increase zone 1 protection reach. -If Healy 1 is offline,the Fairbanks and Anchorage operators should work on decreasing the intertie transfer to 66 MW.If Healy 1 is in service,the intertie transfer may be allowed as high as 80 MW.These transfer limits are as measured from the Douglas end of the line. Under certain circumstances such as when the Gold Hill or Teeland SVS is out of service,the outage of the Healy SVS will cause the subsequent loss of synchronism between the Anchorage and Fairbanks systems with the consequential automatic opening of the Healy-Douglas line and also cause the automatic loss of the Healy generation units per section 1.3.4.Should this happen,the operating procedure for restoring the tie line should be followed. Teeland SVS: An outage of the Teeland SVS will not cause instability on the interconnected system.But under most circumstances,the following procedure should be followed by the Anchorage system operator: -Establish communications and notify the Fairbanks operator of the SVS outage. -Healy-Douglas tie line may be left in service at discretion of the Anchorage system operator. -Limited transfer of power may be permitted over the tie line at the discretion of the Anchorage system operator and within guidelines established by the operating committee. sow Attachment C With a light load condition in the Anchorage area and low power transfer over the intertie,it may be difficult to control voltage at Pt.MacKenzie (see discussion under power flow).This may ultimately require the opening of the interconnection at Teeland. Also,when the Teeland 230 kV breaker is open and the Teeland SVS is out of service,the Teeland 230/138 kV transformer should not be left on the end of the Healy-Teeland 138 kV line for an extensive period of time. Generator Outages: The G/C studies have shown that the interconnected system may become unstable when the intertie is loaded 50 MW or higher and there is an outage of a large unit such as the North Pole generator in the Fairbanks area.Although the General Electric studies indicate that the system may be stable,in order to provide a margin of system security it is recommended that GVEA shed load or trigger the BESS corresponding to the North Pole generator loading when that unit drops out of service and the intertie loading is SO MW or more. Pe yemorwrwirdt ww e INTERTIE MANAGEMENT COMMITTEE MEMORANDUM TO:Intertie Management Committee FROM:IMC Operating Committee DATE:June 30,2014 RE:RCA Rulemaking -Railbelt Operating and Reliability Standards Each Railbelt Utility,except Homer Electric Association,Inc.(HEA)has adopted the IMC's Railbelt Operating and Reliability Standards (Railbelt Standards).'HEA did not execute the Alaska Intertie Agreement and is therefore outside of the authority of the IMC.The IMC Operating Committee is not privy to all of the operating policies and procedures being used by HEA;however,it does appear that HEA is not operating in accordance with some of the Railbelt Standards that were adopted by the IMC.? Specifically,HEA is not in compliance with the spinning reserve requirements contained in the Railbelt Standards. Spinning Reserve Requirements One of the specific standards that the IMC Operating Committee is aware of whereby HEA is non-compliant involves the amount of spin HEA is providing the interconnected Railbelt System.Since the late-1980s,after Intertie was completed and the utilities began reserve sharing,all Railbelt Utilities have carried spin on the system sufficient to cover the loss of the largest generating unit.Each utility is required to carry spin based on the ratio of their own largest units compared to the largest unit.This has worked well for many years. It is the IMC Operating Committee understanding that since HEA has begun generating power for their own load requirements,HEA is only carrying spin in the amount of 10%of the largest unit on the interconnected Railbelt system.HEA apparently bases its policy on the rationale that its system load is 10%of the total interconnected Railbelt peak system load,which is not clearly defined.As a direct result of HEA's decision to break from the well-established interconnected Railbelt System protocol regarding spinning reserve obligations,the interconnected Railbelt System is at risk of having insufficient spinning reserve due to the application of inconsistent '5 The IMC adopted the Railbelt Operating and Reliability Standards for all users of the Alaska Intertie.?The individual utilities that are Members of the IMC have adopted the Railbelt Standards for their respective electrical systems. 1-Memorandum onRCA Rulemaking -Railbelt Operating and Reliability Standards standards.A spinning reserve illustration is attached to this memorandum that illustrates the appropriate level of spinning reserve under IMC adopted standards for all Railbelt Utilities including:1)at the level HEA is currently providing spinning reserve for the interconnected Railbelt System;and 2)the level HEA would provide if it followed the IMC Standards.See Exhibit A.Also attached is a sample spin sheet that HEA publishes every day noting the amount of spinning reserve it provides pursuant to its adopted standard.See Exhibit B.The Exhibits show that the utilities that comprise the IMC are currently making up the difference between the spinning reserve that HEA provides under its policy and the spinning reserve requirements required under the Railbelt Standards. Alternatives for Addressing Issue The issue facing the IMC and the Railbelt Utilities that comprise the IMC is what actions can and should be taken to resolve the issue of the application of inconsistent standards given that HEA outside of the authority of the IMC.The IMC has two basic regulatory paths available to have this matter addressed by the Regulatory Commission of Alaska (RCA):Rulemaking petition or the filing of a Complaint.Both paths have pros and cons.The Rulemaking could prove to be an industry-wide effort;whereas,the Complaint process will have more limited participation.The rulemaking should be less contentious.The complaint process would more than likely bring the matter to a decision quicker than the rulemaking process.Once the rulemaking process was completed,there would be industry-wide standards that the RCA would enforce. Recommended Solution -Rulemaking Petition at RCA Discussions by and between the counsel to the IMC Member Utilities concluded that a filing of a rulemaking petition by the IMC requesting the RCA to address the need for consistency with respect to the operating and reliability standards used throughout the interconnected Railbelt system would be the best approach.The next issue for the IMC to consider is whether the scope of the rulemaking effort should address the spinning reserve issue,or include the entire set of Railbelt Standards.There are pros and cons to both approaches. A rulemaking proceeding may take up to two (2)years.AS 42.05.175(e)requires that the Regulatory Commission of Alaska issue a final order in a rule-making proceeding not later than 730 days from the date the order initiating rulemaking is issued.In that any standards adopted would govern the interconnected Railbelt,it is likely that the RCA would only give weight to the issues raised by HEA,City of Seward, and the IMC Member Utilities in its deliberations.A rulemaking effort that included the entire set of Railbelt Standards would more than likely take the entire two (2)year period,but the result would be that the Railbelt would presumably have a complete set 2-Memorandum onRCA Rulemaking -Railbelt Operating and Reliability Standards of operating and reliability standards.Filing of a more limited petition (i.e.,just spinning reserves)could possibly be completed in a much shorter time but result in just one issue being resolved.However,the most pressing inconsistency would be resolved and the ground work for a fuller discussion of Railbelt wide issues started. Rulemaking Petition -Spinning Reserves The RCA currently has two regulations that address these types of engineering standards forjurisdictional utilities to follow with respect to assuring service reliability. They are: 3 AAC 52.470(a)A utility shall construct,maintain,and operate its plant in accordance with accepted engineering practices to reasonably assure service reliability,service quality,and the safety of persons and property. And, 3 AAC 52.470(c)A utility shall normally maintain generating capacity supplemented by the electric power regularly available from other sources, sufficient to meet all reasonable demands for service and provide a reasonable reserve for emergencies.In addition to other standards imposed by the commission,noninterconnected utilities shall maintain,at a minimum,adequate reserve capacity to cover the loss of the utility's largest generating unit.Generating capacity assigned to interruptible customers may be considered for reserve capacity determination. (Emphasis added). More specificity is needed regarding the reserves which an interconnected utility should maintain.Therefore,it is the IMC Operating Committee's recommendation that,at a minimum,the IMC file a petition with the RCA requesting amendment and enhancement of 3 AAC 52.470 to include more specificity regarding the reserve obligations for utilities along the interconnected Railbelt.The request for a rule change could use the current language of 3 AAC 52.470(c)as a foundation and add amending language to address the interconnected utilities with specificity.A rulemaking petition of this scope could request a more expedited treatment given the need for resolution and risk to reliability given the current inconsistent application of spinning reserves. Rulemaking Petition -Railbelt Standards The IMC Operating Committee would like the IMC to consider filing a petition with the RCA requesting amendment of the RCA regulations to include the entire set of Railbelt Standards.The IMC Operating Committee recognizes that this would be a 3-Memorandum onRCA Rulemaking -Railbelt Operating and Reliability Standards longer more complicated process,but would result in a major step forward with the standardization of the operating and reliability standards. Complaint A complaint proceeding may take up to one (1)year.AS 42.05.175(d)requires that the Regulatory Commission of Alaska issue a final order in a formal complaint proceeding not later than 365 days from the date the order initiating the investigation is issued.The IMC,or a group comprised of the individual utilities comprising the IMC could file a Complaint with the RCA alleging that HEA's actions are |violation of 3 AAC 52.470(e)that requires utilities to”...provide a reasonable reserve for emergencies.” The position of the Complainants would be that HEA's actions are jeopardizing the overall safe and efficient operation of the interconnected Railbelt System. Next Steps The IMC Operating Committee will work with IMC Counsel to prepare the Petition in accordance with the IMC's decision regarding the recommendation for a filing at the RCA. 4--Memorandum onRCA Rulemaking Railbelt Operating and Reliability Standards EXHIBITA IMC Operating Committee Memorandum ENTRY IN GREEN NO ENTRY REQUIRED BOXES ONLY UNIT SPIN USE BIG UNIT UNIT SPIN ML&P 110]39 TOOL BELOW 410|34 CEA 107 37 FOR MLP 107 33 GVEA 65 23 65 20 |MAKE #10%MEA 0 0 |OF BIGGEST 0 0 HEA 32 11 UNIT |70 22 Actual HEA UNIT 70 aee WHAT IT SHOULD BE Cooperative,Inc.=i)Alaska Electric & D/L-use blanks in cap re Energmerey AEEC Spin Sheet 6/2/2014 0100]0200]0300 |0400 |0S00 |0600}07001 6800]6900}1000]1100]1200]1300]1400}1500]1600]1700}1800]1900|2000 |2100 |2200]2300]2400]DiS Temperature 42 40 39 37 35 36 34 34 36 46 49 Si 53 $4 55 5S 58 56 ss 54 S4 53 49 46 Bernice 2 19/119/]19/113/119/]19/119/]19/]19/119/]19/4is/]19/113/]19/]19/119/]19/119]13/119/119/]19/119al/of J of 7 of /of /of 7 of /of /of /of 7 of /of 4 of 4 of 7 of J of 4 of Z af /of of 4 of /01 7 of 7 0 Bernice 3 25712571257 1251257 125/125 125/125 125/125 |25/125/257 [25/7 [257 12571257 25/1257 125]257125125ol/of /of /of /of 4 of /of /of 7 of /al /of OL /of /of 4 of 4 of /of /of 4 oL 4 of 4 of Y of /of 70 Bernice 4 75/125/125/125 /125/257 1257 12571257125 7125 7125/7 125/125/[25/1257 12571257125 125/125 125/125 "7 /ol /of 7 of /of 4 of /of J of /of 7 of /of 7 of /of 7 of /of 7 of 7 of /of /of 7 of 4 of /of 7 of 7 of 7 0 Nikiski Cr 36/136 71367136 7136/1367 136/[36/1367 136/136,136 136,367 |36/136/136 136,136/136,|36/136,136,136 3)33]Aal Aal Asal Aa]cl A7]51 al al Al Al 2]As As]As]al al A]4a A242]Ar .177117 117/117 117 117 117 134 1347134 713471347134 134/134 /134 134/134 71347134 134/134 134/134NikiskiSTG151/31 As|Aa]Aat Al Asl Ast Aol Aol 20]201 Z0l Ast 21 211 A1|A200}20}A5|Ast As}Asal As id 48714871487 14871487 148/148 14871487148 /148 148 148 ]48 148148 148,148/148 148 [48 148 1487 148Soldotnaol/of /of 4 of J of 7 af 4 of /of /of Z of 4 of 4 of 4 of /of 4 of J of 4 of ol /of /of /of 4 of 4 0 4 0 Total Gen spin al 7;41515]5!4]24]16]17|a7)16]17)19|24]14]14]a6]17|17]18]20|201 23]0 Purchased Spin 3,3)af ay ata]a}ala!af al 3)a)af 3!a]alal3lal3l af af alo Sold Spin of of of of of of of o|of o]o o|ol of o|o o|of of of of o|o SILOS s|sl sls!sls!7 2 Total t2|15]12)13)13]13}11]171 21]201 20]19]20]22|171 17|17]19]20]20]22|23]23]261 0SpinObligation4a}21)22)33/221 22!23!a2)a3)2a)1a)22]aa)22)anf ni]aa)nf aa]aif mf ul nj)am Deficiency 6/3/2014 12:08 AM These are mostly "reads”ie dispatcher should enter just before the ramp (ie 5 min til the hour). Intertie Management Committee Regular meeting MEETING MINUTES Monday,June 30,2014 Anchorage,Alaska 1.CALL TO ORDER Chair Brad Evans called the meeting of the Intertie Management Committee to order on June 30, 2014 at 10:30 a.m.A quorum was established. 2.ROLL CALL FOR COMMITTEE MEMBERS Members present:Bradley Evans (Chugach Electric Association);Cory Borgeson (Golden Valley Electric Association);Joe Griffith (Matanuska Electric Association);Jeff Warner (Municipal Light &Power);and Gene Therriault (AEA). 3.PUBLIC ROLL CALL Burke Wick;Brian Hickey Chugach Electric Association (CEA) Allen Gray;Dan Bishop;Mike Wright Golden Valley Electric Association (GVEA) Matanuska Electric Association (MEA) Aung Thuya Municipal Light &Power (ML&P) Kelli Veech;Katherine Beale;Teri Alaska Energy Authority (AEA) Webster Kirk Gibson (McDowell Rackner &Gibson PC);Bernie Smith (Regulatory Commission of Alaska (RCA));Bob Day,Jim Cross,(Homer Electric Association (HEA));Henri Dale;and Miranda Studstill (Accu-Typeé Depositions). 4.AGENDA APPROVAL MOTION:Mr.Griffith made a motion to approve the agenda as presented.Motion seconded by Mr.Therriault.The motion was adopted without objection. 5.APPROVAL OF PRIOR MINUTES -March 11,2014 and May 8,2014 MOTION:Mr.Griffith made a motion to approve the prior minutes of March 11,2014 and May 8,2014.Motion seconded by Mr.Therriault.The motion was approved unanimously. 6.PUBLIC COMMENTS There were no public comments. 7.NEW BUSINESS 7A.Approval of FY15 Budget IMC Meeting Minutes-June 30,2014 Page 1 of 3 The committee members reviewed each line item in the budget.MOTION:Mr.Therriault made a motion to amend the FY15 proposed budget as presented to the following:1)Allocate FERC 924 Property Insurance of $145,000 under MIRCR calculation;2)Reduce FERC 566 Intertie Ground Patrols from $40,000 to $25,000.The motion was seconded by Mr.Griffith.A vote was called and the motion passed unanimously. MOTION:Mr.Therriault made a motion to adopt the FY15 budget of $2,677,780 with the following stipulations:1)Provide greater level of detail for line items FERC 566 -Private Line Telephone Service for AKI SCADA of $110,000;FERC 566 SLMS -Support Contract/Battery Changeout of $60,000;FERC 920 -IMC Administrative Costs of $150,000;2)Direct budget subcommittee to revise budget presentation for improved legibility and comparability for Railbelt budget structure.The motion was seconded by Mr. Griffith.A vote was called and the motion passed unanimously. 7B.Clarification on newest Alaska Intertie Agreement Mr.Therriault inquired how the committee would like to address inconsistencies in terms and misspellings in the approved Second Amended and Restated Alaska Intertie Agreement that was passed in March.Mr.Evans suggested to make all the changes in one motion.The IOC will be reviewing the list of inconsistencies and will be reporting back to the IMC their recommended changes. 7C.IMC /OC Subcommittee Members -Participation by non-IMC members 7D.Level of Detail on Meeting Minutes 7E.Operators Report --1OC 8 COMMITTEE ASSIGNMENTS Chair Evans made assignments.The JOC will ensure the definitions in the Second Amended and Restated Alaska Intertie Agreement are consistent with the index of definitions. 9.NEXT MEETING DATE 10.ADJOURNMENT There being no further business of the IMC,the meeting adjourned at 12:45 p.m. Bradley Evans,Chairman IMC Meeting Minutes-June 30,2014 Page 2 of 3 Gene Therriault,Secretary IMC Meeting Minutes-June 30,2014 Page 3 of 3 we ye Kot SHenPsArraid -FY)Ss "Pas posect Bud.sit oS pudehli)Allocate Fete,Tad.aes dasurare| 7 Lender NTR , lofA|iMmi fec -caleu later.ad ESRE Shilo -daterh'e Grourd Pte |I<I om BYd008 eo %Q5;400 __-eoSsPas vegle.add ta gnedler lok al dhaROutePitinelghowsina dt71g 00.i "SMES Feb, SLMS IM Rdministracbin #)FG U6. 1 dd Diced BudgdaS <ubeamovHee Te Cyuisa.bodget.| eo |Dxeaketon for im Proved..._og be and.ot.Compa +e __caclwae bu SHue_beh an i _Pod ___ee.__-en aaa 4 ay ti ee _____ oo a a ;7-ene BEL ae -pa.-a -.-a -ed -_-a a - t ---ae en re -=ed _-i -ene _ 3 4 i --i ee ee oe - -rae -- i 56200 €1501 E1501 | €1501 £1502 £1501 .ELSOL €1501 ,£1501 €1502 «E4501 €1501 £1501 - €1501 €1501 €1501 .£1502 TRARK 583XX se4ol 58401 00000000 12270019 11270022 "",11270023 11270001 08270005 ©. 12270002 ”10270016 10270016 11224001 10270017 Original Revised Proposed Fv13 Fvi4 v4 ACTUALS OVER FvisActualBudgetBudget@4/30/14 (UNDER)BudgetSTDP1REVENUES #*GVEA 2,035,834 1,888,380 1,718,650 1,326,407 (392,243)1,880,590*ML&P 56,134 $0,096 101,146 50,096 "7,($1,050)250,410*CEA 75,286 69,620 118,264 67,084 (51,180)269,842*MEA 48,180 41,331 93,469 68,719 "=,(24,750)295,050 MISC Revenue-Reliability Standards °°°160 *INTEREST .Tee 130 a :111 TOTAL REVENUES 2,215,563 2,049,427 2,031,529 1,512,578 2,695,892 EXPENSES FERC 562 -Station Operation Expenses #OPS GVEA -Substation Efectricity Usage 8,650 7,000 7,000 $,801 (1,199)7,000 8,650 7,000 7,000 5,801 (1,199)7,000 FERC 566 -Miscellaneous Transmission Expense #OPS SCADA &Voice Circutts (SOA) . °:°° WOPS %Private Line Telephone Service for AKISCADA (GVEA)106,000 22,456 *(83,544)110,000 #OPS Cell Phone Comm.Svc for Weather Monitoring {ATT}15,000 11,594 {3,406}15,000 #OPS 4%SLMS -Support Contract/Battery Changeout (08-007-EPSI)41,394 60,000 60,000 24,852 (35,148)60,000 #OPS Intertie Ground Safety Patrol -(08-007-HDR)25,347 40,000 40,000 1,295 (38,705)40,000 #OPS Misc Studies as needed (Cyber Security Study}426 50,000 50,000 °{50,000} Misc Studies as needed (System Stability Study).180,000 180,000 °(180,000)° Misc Studies as needed (Under Frequency Load Shed Study)::=::450,000 109,277 451,000 451,000 60,196 (390,804}|225,000 FERC 567 -Transmission Expenses -Rents #OPS Rents -Alaska Railroad 1,100 400 400 700 300 400 #OPS MEA -Talkeetna Storage 7,200 7,200 7,200 4,800 ".(2,400)7,200 #PSSE key replacement =1,000 1,000 :(1,000)1,000 8,300 8,600 8,600 5,500 (3,200)8,600 FERC 570-of Station #OPS GVEA -Healy Cantwell,Goldhill 144,859 65,000 65,000 118,177 53,177 65,000 #OPS GVEA -SCADA Maintenance Healy,Cantwell,Gold Hill cw °°°..10,000.00 #OPS GVEA -Healy SVC Maintenance (570270}-°°21,400 21,400 20,000.00 #OPS GVEA-Gold Hill SVC Maintenance (570240)°#°14,186 14,186 20,000.00 #OPS GVEA -Cantwell Batteries -New Charger °°-1,893 1,893 > #OPS -_GVEA-Cantwell Substation Fence wn ' ° - =S:..5 #OPS GVEA -Standby Generator Set Standardization at CWS °°°°° #OPS GVEA -Replace Protective Relay Schemes Healy a ° . ..°-- #OPS MEA-Replace Protective Retay Schemes Douglas . .330,000 36,300 °(36,300)326,700 GVEA -Cantwell Repair 452 Switch A °:.8 *(1,720).GVEA -Mobile Substation Access Cav twet-AsA owned if .250,000 250,000 .(250,000)250,000 'GVEA -RTU replacement-Cantwell .. ©45,000 45,000 2 (45,000);45,000 GVEA -Recloser Control Replacement -80,000 80,000 °{80,000)80,000 GVEA -Transformer Protection Upgrades -35,000 35,000 .(35,000)35,000. #OPS CEA-Teeland Substation 74,189 °.37,202 37,202 151,000.00 #OPS MEA -Douglas Substation 76 17,200 1,720 .(1,644)15,480 MEA -Maintenance of Structures ::a 2,375 2,375.- 219,125 822,200 $13,020 195,311 (318,429)1,018,180 FERC 571 -Maintenance of Overhead Lines #OPS GVEA -Northern Maintenance .112,063 153,000 153,000 22,251 {130,749)170,000 #OPS GVEA-Northern ROW Clearing a °--oe . -200,000 #OPS GVEA -Landing Pads °50,000 50,000 ° ___ (50,000)50,000 #OPS GVEA -Re-level Structures &Adjust Guys ca "26,000 26,000 .{26,000}26,000 #OPS GVEA -Repair Tower 692 -20,000 20,000 .(20,000))20,000 #OPS MEA.Special Patrols (Inc!Foundation Inspections].53,226 |..:_15,000 15,000]..*$4,366 _39,366 45,000 #OPS MEA -Southern Maint (Incl Ground Inspect)35,102 70,000 70,000 25,311 (44,689)70,000 #OPS MEA -Southern ROW Clearing Talkeetna North .25,000 25,000 :{25,000)25,000 #OPS MEA -Contingency .20,000 20,000 °(20,000)20,000 #OPS MEA -TWR 195 Repair Monitoring =10,000 10,000 :(10,000)10,000 200,390 389,000 389,000 101,928 (287,072)636,000 Intertie Operating Costs Total 545,741.70 |_1,677,800.00 |_1,368,620.00 368,735 {1,001,605 1,887,780 FERC 920 -AEA Administrative Costs #OPS Personal Services,Travel and Other Costs 44.720 50,000 50,000 38,179 {11,821)60,000 44,720 $0,000 50,000 38,179 {21,823)60,000 FERC 920 -IMC AdministratWe Costs #OPS (Mc ini:Costs (Audit,legal)18,263 34,000 34,000 18,143 {15,857)150,000 18,263 34,000 34,000 18,143 {15,857)150,000 FERC 924 -Property Insurance #OPS AK Intertie -Insurance 140,007 145,000 145,000 118,269 (26,731)145,000 #OPS Insurance Risk Assessment :::::> 140,007 145,000 145,000 118,269 (26,731)145,000 Intertie Administration Costs Total 202,990.46 229,000.00 229,000.00 174,591 (54,409)805,000 - TOTAL EXPENSE 748,732 1,906,800 1,597,620 543,327 (1,056,013 be7892,780)| SURPLUS (SHORTAGE)1,466,831 142,627 433,909 969,252 537,063 3,112 Alaska Intertie FY15 Proposed Budget Cory.Of GVEA Credits Per GVEA Par AEA -remove as per KW. Par GVEA Par AEA Per AER Per AEA Remove as per IW.-can adj.if nee at per GVEA *Included in Administrative Totats Fined Fixed Per MLP Per GVEA Per GVEA Per GVEA Per GVEA Per GVEA Per GVEA Per GVEX Per GVEA Per AREA Per GVEA »Per GVEA Per GVEA Per GVEA Par GVEA Per CEA Per MEA Per GVEA Per GVEA Per GVEA Par GVEA Per GVEA Per MEA Per MEA Per MEA Per MEA Per MILP °Does net include UFLS Study Par ACA FY14 include audit contract appron.$14,000 inci.aviation insurance Per AEA=acta Unis ey >aq '€ge( ATTENDANCE -IMC June 30,2014,10:30 am Phone COMMITTEE MEMBERS | ALTERNATE _Brad Evans,Chairman :CEA es Burke Wick ent,Vice Chairman MLP Jeff Warner _Gene Therriault,Secretary/Treasurer AEA Sara Fisher-Goad -Cory Borgenson GVEA =Allen Gray pnore- Evan "Joe”Griffith MEA Gary Kuhn Public Members COUNSEL .Bernie Smith-RCA J -Ue Kirk Gibson,McDowell Rackner & Brian Hickey CEA Gibson PC |+00AgiML&P p ob Day -HEA / -be ; AEA Staff ;Sandie Hayes Henri Dale "|Teri Webster Ko ; "|Yebli.Ve2 tw Peo Daw jf UscaPsSimCrossJwih Move GVEA ALASKA INTERTIE MANAGEMENT COMMITTEE MEETING Monday,June 30,2014 -10:30 AM **PLEASE WRITE LEGIBLY** NAME Organization/email Autonda.Studlsh U ATD Gap Sony LH /|RCA BNRKL CUAL Y 2Brf CHAO EUROS 4 CEdKelleVewoh"AskPRPSain"|WeepAUNGTHUYAv| MLpP Enon Hewsy WA cil ees tKATHERINGBEALE-|Ag "Ter,Weblbshee a Re A {A (b)-providing an email or other electronic notice to all IMC Members,alternates,and persons or organizations who have filed with the IMC a written request to receive notice,and (c)publishing a notice on the State of Alaska's public meeting calendar. 5.4.2.Notice for all meetings shall include the date,time and place of the meeting,and if the meeting is by teleconference,the call-in number and,if applicable,the location of a teleconferencing facility from which IMC Members and the public can participate. 5.4.3 |Written notice of special meetings shall be given in as far in advance as is reasonable before the time specified for such meeting.Such notice of special meetings shall state the purpose or purposes for which the meeting is called. Business at a special meeting shall be limited to the purposes stated in the notice of such special meeting. 5.4.4 |The IMC shall make a good faith effort to give reasonable notice to the public of all its meetings,but,to the extent permitted by law,the inadvertent failure to accomplish any one of the public notice requirements shall not invalidate any action of the IMC. 5.5 Waiver_of Notice.Whenever any notice is required to be given to any IMC Member,a waiver of the notice requirement in writing,signed by the person or persons entitled to such notice,whether before or after the time stated in the notice,shall be deemed equivalent to the giving of such notice. 5.6 Place of Meetings.The Chairman of the IMC may designate any place as the place of meeting for any annual,regular or special meeting of the IMC. 5.7 Teleconferences.Attendance and participation by any or all representatives of the IMC Members at any meeting of the IMC may be by teleconference so long as all IMC Members can be heard and hear all of the proceedings.For purposes of these Bylaws,the term "teleconference”shall!include any electronic means of communication meeting the requirements of these Bylaws.The votes at a meeting held by teleconference,or a meeting with an IMC Member participating by teleconference,shall be taken by roll call.Participation by teleconference shall constitute presence in person at the meeting.Materials that are to be considered at a meeting that is by teleconference shall be made available at the teleconference location(s)or distributed electronically. 5.8 Minutes of Meetings.Written Minutes shall be kept for all regular and special meetings of the IMC.All decisions or agreements made shall be reduced to writing,including all matters voted upon and each IMC Member's vote on those matters.Minutes of the IMC meetings shall be transmitted by mail,hand delivery,or electronically to each IMC Member following each meeting.The official copy of the Minutes for each meeting shall be signed by the Chairman and the Secretary. Page 3 of 12 -Intertie Management Committee Bylaws (November 2011) ALASKA ENERGY AUTHORITY Intertie Management Committee iD ig?IMC:June 30,2014 >xxSSON Roll Call Agenda Minutes >Budget 10C motion Roll call from top to bottom ending with Chair Yes No Yes No Yes No Yes No Yes No =--acres menue es Golden Valley Electric Association Cr ry "a x Matanuska Electric Association Dox "i AV .\a " Alaska Energy Authority Genkv ")'»)a o A Municipal Light &Power Te x"7 / Chugach Electric Association "er o d L / TOTAL I I I 1 Roll call from top to bottom ending with Chair Yes No Yes No Yes No Yes No Yes No Golden Valley Electric Association Matanuska Electric Association Alaska Energy Authority ir099Ve8.CorMunicipal Light &Power Chugach Electric Association |TOTAL Next Meeting: Your le Meeting -Are you gowrg 40 he Ahweod blgdorca\\ing Seow here.we recognized that Prudent Utility Practice are not intended to be limited to the optimum practices, methods or acts to the exclusion of all others,but rather is a spectrum of possible practices, methods or acts which could have been expected to accomplish the desired result at the lowest reasonable cost consistent with reliability,safety and expedition.Prudent Utility Practices include due regard for manufacturers'warranties and the requirements of governmental authorities having jurisdiction. 47.Railbelt -shall mean,in reference to a utility or Participant,those electrically connected electric utilities situated along the Alaska Railroad from Fairbanks to Seward,Alaska. 48.Reliability Standards -shall mean those standards having to do with promoting _ the reliable operation of the Intertie developed,adopted and enforced by the IMC in compliance with the requirements of Article 3,OPERATING AND RELIABILITY STANDARDS AND ENFORCEMENT.The Reserve Capacity and Operating Reserve Responsibility agreement, which is Exhibit H to the Agreement,will constitute the Reliability Standards until such time as the IMC adopts and implements additional standards. 49.Reliability Standards Implementation Agreement -shall mean that contractual agreement between the IMC and the Participants and Users for the implementation of IMC- approved #Reliability sStandards. 50.Representative -shall have the meaning provided in Section 9.1.2, Representatives. 51.Required Work -shall have the meaning as provided in Section 8.8,AEA's Ability to Perform Required Work,and Section 6.4.4,Right to Make Improvements-Required Work. §2.Reserve Capacity -shall mean the excess in kilowatts of a system's Net Generating Capability over its maximum System Demand for any period. 53.Reserve Capacity Obligation -shall mean the capacity which a Participant is obligated to reserve and use for the purpose of maintaining continuity of service. 54.Reserve Fund -shall mean the fund established to provide for repairs to and replacements of Intertie Facilities pursuant to Section 7.1.2.4,and Section 8.6.12,Creation of Reserve Fund,consistent with Prudent Utility Practice and in compliance with applicable law and regulations,or as required by any bond or other borrowing covenants. 55.Scheduled Outage -shall mean any outage of generating or transmission facilities which is scheduled in advance to be out of service. 56.Southern Group Greup--shall initially mean AML&P,CEA,AEG&T,MEA, and RHEA. Page 6 of 7 -Exhibit B to Amended and Restated Alaska Intertie Agreement cCommented [TW4]:Exh 8,47 Railbelt-|would suggest dropping the reference to the Railroad (not sure,but HEA likely wouldn't fit the definition}and go with something like "the interconnected transmission systems of the south central and north central utilities”. Commented [TW5]:Exh B,48 Reliability Standards -Since the document has yet again been amended and restated, shouldn't we just point to the adopted standards and drop Exhibit H and its references? Commented [TW6):Exh B,54 Reserve Fund -contains the term "Intertie Facilities”which is capitalized,but doesn't appear to be in the defined terms. 57.Spinning Reserve -shall mean the amount of unloaded generating capability of a_ Participant connected to and synchronized with the interconnected system of the Participants and ready to take load.Spinning Reserve allocation to any generator shall not exceed the amount of generation increase that can be realized immediately from normal governor control. 58.System Demand -shall mean that number of kilowatts which is equal to the kilowatt-hours required in any clock hour,attributable to Energy required during such hour for supply of Energy to a system's consumers,including system losses,and also including any wheeling losses occurring on other systems and supplied for transmission of such Energy,but excluding generating station uses and excluding wheeling losses supplied by another system. 59.Total Operating Reserve Obligation -shall mean that amount of Spinning Reserve and Non-Spinning Reserve of the Participants collectively required to maintain continuity of service. 60.Transmission Service -shall mean service provided by the use of the transmission system of a Participant directly collected to the Intertie for wheeling of power and energy through its system for another Participant. 61.Transmission Service Facilities -shall mean the integrated transmission facilities of the transmitting utility,excluding power plant step-up transformation and radial lines to loads or generators. 62.User -shall mean any entity actually using the Intertie that has executed a User Agreement,including a Participant that has executed a User Agreement. 63.User Agreement or Intertie User Agreement -shall mean an agreement adopted by the IMC pursuant to the requirements of Section 8.6.2,Intertie User Agreement,that provides common terms and conditions for Capacity and Energy transaction on the intertie by Participants and Users.The initial form of the User Agreement is Exhibit F to the Agreement. Page 7 of 7 -Exhibit B to Amended and Restated Alaska Intertie Agreement doesn't apcer[Sommented [TW7]}:Exh 8,57 Spinning Reserve-the defini pear to allow SILOS or BESS type methods."| 34.MITCR shall mean the Minimum Intertie Transfer Capability Rights as discussed in Article 6,MINIMUM RIGHTS OF THE PARTICIPANTS AND USERS TO USE INTERTIE FACILITIES.A sample MITCR calculation is included at Exhibit G. 35.New Participant Addendum-shall mean the agreement required by Section 4.2, New Participant,as part of the requirements for the addition of a new Participant. 36.Non-Spinning Reserve -shall mean all unloaded generating capability not meeting the Spinning Reserve criteria that can be made fully effective in 45 minutes. 37.Northern Group -Shall initially mean GVEA. 38.Open Access -shall have the meaning provided in Section 16.1,Definition. 39.Operating Committee -shall mean the committee established by Section 9.1,Establishment of the Operating Committee. 40.Operating Reserve -shall mean the sum of Spinning and Non-Spinning Reserves. 41.Operating Reserve Obligation -shall mean that amount of Spinning Reserve and Non-Spinning Reserve which a Participant is obligated under the terms of this Agreement to provide for the purpose of maintaining continuity of service. 42.Operation and Maintenance Costs -shall have the meaning provided in Section 7.1.2.1. 43.Original Agreement -shall mean the Alaska Intertie Agreement dated December 23,1985. 44.Participant -shall have the meaning provided in the preamble to the Agreement and Article 4,PARTICIPANT. 45.Payment Obligation -shall have the meaning provided in Section 8.7,Payment Obligation Unimpaired. 46.Prudent Utility Practices -shall mean Prudent Utility Practices at a particular _.-time means any of the practices,methods and acts which,in the exercise of reasonable judgmentinlightofthefactsknownatthetimethedecisionwasmade,would have been expected to accomplish the desired result at the lowest reasonable cost Consistent with reliability,safety and expedition,including but not limited to the practices,methods and acts engaged in or approved bya significant portion of the electrical utility industry prior thereto.In applying the standard of Prudent Utility Practices to any matter under the Agreement,equitable consideration should be given to the circumstances,requirements and obligations of each of the Participants, and the fact that the Participants are cooperatives,public corporations,or political subdivisions of the State of Alaska with prescribed statutory powers,duties and responsibilities.It is Page 5 of 7 -Exhibit B to Amended and Restated Alaska Intertie Agreement Commented [TW3):Exh 8,46 Prudent Utility Practices -first sentence very clumsy 24.Incremental Energy Cost -shall mean the cost of fuel,operating labor and maintenance to generate the next unit of Energy required at any time,including the cost of starting and operating any generating unit which must be started as a result of supplying such Energy.The incremental cost per kilowatt hour for any particular transaction shall be the total of such costs divided by the kilowatt hours scheduled for delivery to the receiving Participant. In situations where a Participant will incur replacement fuel costs which are higher than the cost of existing fuel supply,replacement costs shall be used. 25.Interruptible Transmission Service -shall mean a service providing for transmission of electric Energy in bulk from one utility system through the utility's transmission system providing the transmission service to another utility.This service is made available with the understanding that it can be curtailed or interrupted at any time with little or no notice at the discretion of the supplier. 26.Intertie -shall mean the electrical transmission facilities constructed by APA or AEA to interconnect the Participants in North-Central Alaska with the Participants in South- Central Alaska and facilities under contract to AEA that are part of the interconnected Intertie system. 27.Intertie Costs -shall have the meaning provided in Section 7.1,Intertie Costs. 28.Intertie Point of Interconnection -shall mean the AEA-owned facilities in the Douglas Substation,which is also the point of interconnection between AML&P's and GVEA's Control Areas. 29.Intertie Operators -shall mean the operators at the control centers of AML&P and GVEA,the utilities that have operational responsibility for the Intertie under Article 10, OPERATION OF THE INTERTIE. 30.Intertie System -shall mean the Participants of the Alaska Intertie Agreement functioning as an interconnected electrical system. 31.Intertie -shall mean transfer of electric energy on the Intertie or a commitment to provide reserve capacity between Participants and/or Users. 32.Intertie User Agreement or User Agreement -shall mean an agreement adopted by the IMC pursuant to the requirements of Section 8.6.2,Intertie User Agreements,which provides common terms and conditions for Capacity and Energy transactions on the Intertie by Participants and Users.The initial form of the User Agreement is Exhibit F to the Agreement 33.Maximum Intertie Transfer Capability -shall mean,for purposes of this Agreement,the maximum Intertie transfer capability is 78 MW,net of losses,as provided in Section 6.3,Maximum Intertie Transfer Capability,unless changed by the IMC pursuant to Section 6.2.4,IMC Authority to Change Capacity Allocation Methodology. Page 4 of 7 -Exhibit B to Amended and Restated Alaska Intertie Agreement ee {Commented [TW2]:Exh B,31 Intertie doesn't make sense.} generating unit or units and a proportional amount of the annual debt service on the capital investment of the highest cost (per kw)generating unit on the receiving Participant's system. The decremental cost of Operating Reserves shall be the total of such avoided costs to the receiving Participant.In situations where a Participant would have incurred replacement fuel costs which are higher than the cost of existing fuel supply,replacement costs shall be utilized. 13.Designated Contractor -shall mean the contractor designated by the United States Army from time to time as provided in Article 30,AGENTS,to operate the utility systems on the United States Army's bases. 14.Effective Date-shall have the meaning provided in the preamble of the Agreement. 15.Emergency Outage (Forced Outage)-shall mean any unanticipated, unscheduled outage of generating or transmission facilities for other reasons than planned maintenance.Such outage classification shall not exceed a period of four hours. 16.Energy -shall mean as commonly used in the electric utility industry,electric energy means kilowatt hours (kWh). 17.Energy Rate -shall have the meaning provided in Section 7.2.5,Energy 18.Extraordinary Maintenance and Replacements Costs -shall have the meaning provided in Section 7.1.2.2. 19.GVEA Control Area-shall have the meaning as provided in Section 10.1.3, GVEA Responsibilities. 20.Improvement -shall have the meaning provided in Section 6.4.1,Development of Improvements. 21.IMC -shall mean the Intertie Management Committee.The criteria for membership in the IMC is provided in Section 4.3,Membership In IMC,and its establishment, authority and duties are set out in Article 8,INTERTIE MANAGEMENT COMMITTEE. 22.IMC Bylaws -shall have the meaning provided in Section 8.2,Adoption of Procedural Rules or Bylaws. 23.Incremental Cost -shall mean the cost of fuel,operating labor,maintenance and a proportional amount of the annual debt service on the capital investment of the next generating unit that would be used to provide the required capability and Energy.It shall include the cost of starting and operating any generating unit required to provide such Energy.The incremental cost of supplying Operating Reserve shall be the total of such costs for the period of time involved.In situations where a Participant will incur replacement fuel costs which are higher than the cost of the existing fuel supply,replacement costs shall be used. Page 3 of 7 -Exhibit B to Amended and Restated Alaska Intertie Agreement agreements.Such association shall be considered the ownership of a controlling interest or other right to control,either directly or indirectly,the affairs of the affiliated entity. 3.Agreement -shal!have the meaning as provided in the preamble of the Agreement. 4.Annual Deb Service Cost -shall have the meaning provided in Section 7.1.2.3. 5.Annual System Demand -shall mean the highest hourly System Demand occurring during the 12-month period ending with the current month and that is used in the MITCR calculations. 6.Available Accredited Capability of a Participant.-shall mean the Accredited Capability adjusted for generating capacity out of service for maintenance or repair. 7.Capacity -shall mean the time rate of generating,transferring or using electric Energy,usually expressed in kilowatts. 8.Capacity Rate (or Intertie Capacity Rate)-shall have the meaning provided in Section 7.2.6,Capacity Rate. 9.Control Area -shall mean an interconnected system of one or more utilities which manually or automatically controls all generation to meet the total load,plus or minus the power it is delivering or receiving from neighboring systems by exercising operating control of the resources necessary to meet the loads within the Control Area on an instantaneous and continuous basis.The Participant exercising operating control for a Control Area provides the following services: a._regulate generating facilities and other power resources to effect instantaneous and continuous supply of the power requirements of the loads within the Control Area; b.regulate generating facilities to assist in the control of frequency and time correction;and c.monitor continuously the power flows between the Control Area and the Control Area(s)with which it is interconnected. 10.Cost of Improvements -shall have the meaning provided in Section 11.Declared Capability -shall mean the current capability of a generating unit which is not greater than the published capability of the unit. 12.Decremental Cost -shall mean the cost of fuel,operating labor and maintenance which would have been incurred to provide the Operating Reserves at any time and which are avoided by the other Participant,including the cost of avoiding the starting and operating of a Page 2 of 7 -Exhibit B to Amended and Restated Alaska Intertie Agreement Commented [TW1)]:Exh B,10 Cost of improvements-is missing a section citation EXHIBIT B TO SECOND AMENDED AND RESTATED ALASKA INTERTIE AGREEMENT DEFINITIONS ABBREVIATIONS 1.AML&P Municipal Light and Power,a department of the Municipality of Anchorage,Alaska. 2.AEA Alaska Energy Authority. 3.AEG&T Alaska Electric Generation and Transmission Cooperative,Inc.,of which Homer Electric Association, Matanuska Electric Association,Inc.are members. 4.APA Alaska Power Authority (predecessor agency to AEA). 5.CEA Chugach Electric Association,Inc. 6.GVEA Golden Valley Electric Association,Inc. 7.HEA Homer Electric Association,Inc. 8.MEA Matanuska Electric Association,Inc. DEFINITIONS 1.Accredited Capability of a Participant -shall mean:(a)the net generating capability of a Participant;plus (b)the value in kilowatts assigned to that Participant's purchases and/or firm commitments for power from electric suppliers under contracts now existing or hereafter created;minus (c)the value in kilowatts assigned to any commitment of that Participant to deliver power to any electric supplier or suppliers pursuant to any valid order or under separate contract or contracts now existing or hereafter created.The Accredited Capability of a Participant may be determined and assigned by the Operating Committee in accordance with the provisions of the Agreement. 2._Affiliate(s)-shall mean any subsidiary or other entity which is associated with orhasalegalrelationshipwithaPartytotheAgreement,or a successor agreement,or any related Page |of 7 -Exhibit B to Amended and Restated Alaska Intertie Agreement EXHIBIT B TO SECOND AMENDED AND RESTATED ALASKA INTERTIE AGREEMENT (Revised March 11,2014) DEFINITIONS bonds issued by it and as provided in any bond covenants, resolutions or similar obligations. 7.1.2.4 "Reserve Fund”is the amount necessary,as determined by the IMC,to provide a prudent level of reserves to fund the operation and maintenance of the Intertie and the Intertie Costs specified in this Section 7.1,Intertie Costs.The Reserve Fund shall be maintained as a separate and distinct fund to be held,managed,invested,disbursed and administered by AEA in accordance with criteria approved by the affirmative vote of a minimum of 75 percent of the members of the IMC constituting greater than 66 percent of the total Annual System Demand of all members of the IMC, including the affirmative vote of AEA.All money deposited in the Fund shall be used solely for the purposes set forth in this Agreement.AEA shall keep and maintain records pertaining to the Reserve Fund,and all disbursements therefrom,in accordance with its general practices and procedures in effect from time to time and in compliance with GAAP. 7.1.2.5 Station service costs. 7.1.2.6 "Cost of Improvements”those costs determined in accordance with Section 6.4.3,Responsibility for Cost of Improvements. 7.1.3 Intertie Administration Costs.At a minimum,the following costs shall be included in Intertie Administration Costs budget 7.1.3.1 |AEA's administrative expense associated with the Intertie. 7.1.3.2 Legal expense associated with IMC activities. 7.1.3.3.Regulatory costs associated with IMC activities. 71.3.4 Costs associated with developing,engineering,monitoring, and administering operating and fReliability sStandards for the Intertie and the IMC. 7.1.4 Annual Budget and Fiscal Year.The IMC will estimate and budget Intertie Costs annually for the ensuing fiscal year,July 1 to June 30,subject to AEA's review and approval.The IMC shall develop annually a preliminary operating budget from:the Intertie Operating budget;the Annual Debt Service costs;the Intertie Administration Costs budget,and any allocation for Improvements. Unless otherwise agreed in writing by the Participants,the preliminary Intertie Page 13 of 46 -Second Amended and Restated Alaska Intertie Agreement 7.2.6 Section 7.3 Capacity Rate.The "Intertie Capacity Rate”for the following fiscal year. expressed in dollars per kW,shall be calculated by dividing 16.5 percent of the total budgeted Intertie Operating Costs as determined in the Intertie budget established under Section 7.1,Intertie Costs,by the sum of the Participant's or User's Intertie Capacity rights allocations. Calculation of Intertie Administration Costs. The IMC shall estimate the total annual Intertie Administrative Costs and divide that amount in equal annual shares each of the Participants and Users. Section 7.4 Payment of Intertie Costs. Except for amounts associated with Improvements that have been specifically allocated or otherwise addressed pursuant to Section 6.4,the obligation for payment of Intertie Costs shall be apportioned in accordance with this Section 7.4 74.1 7.4.2 Participant and User Payments.Each Participant and User shall be obligated to pay to AEA,for the account of the IMC,monthly the sum of the following: 7.4.1.1.The Participant's or User's scheduled use of the Intertie for the month multiplied by the Intertie Energy Rate in effect for the fiscal year;plus, 7.4.1.2 The Participant's Intertie Capacity rights allocation, determined in accordance with this Agreement,multiplied by one-twelfth of the Intertie Capacity Rate in effect for the fiscal year or the Participant's obligation as calculated pursuant to Section 6.2.3,Right to Contractually Transfer MITCR,if applicable;plus, 7.4.1.3.Each User's Intertie Capacity rights allocation,determined in accordance with this Agreement,multiplied by the monthly Intertie Capacity Rate in effect for that period multiplied by the number of months of the fiscal year that the User has a contract for the use of Intertie Capacity or as determined pursuant to Section 7.3.1.2;plus, 7.4.1.4 The allocated monthly share of the Intertie Administrative Costs for each Participant and User in effect for the fiscal year. Annual Payment of Intertie Costs.The IMC shall have the authority to convert the Participants'and Users'payment obligation,or any portion thereof,to one annual payment,which shall be due and payable at the beginning of the fiscal year.Any such annual payment attributable to Intertie Operating Costs shall be Page 15 of 46 --Second Amended and Restated Alaska Intertie Agreement Commented [TW1]:)7.4.2 has the phrase "...shall be based on each Participant's or User's projected use of the intertie to the extent usage has not been scheduled.”Not sure what this means. Commented (TW2):7.4.2 allows the IMC to convert the monthly payments to an annual payment (which has been historically done for decades).Not sure when such an option gets declared.Seems to just happen due to habit. based on each Participant's or User's projected use of the Intertie to the extent usage has not been scheduled.Any such annual payment attributable to Intertie Administrative Costs shall be based on each Participant's or User's allocated share of the approved budgeted annual Intertie Administrative Costs 7.4.3,Monthly Use.For billing purposes only,the scheduled use of the Intertieinany ..-- month shall be the greater of the actual energy transferred or the product of the scheduled Intertie transfer at the Intertie Point of Interconnection and the number of hours each schedule was in effect during that calendar month. 7.4.4 Excess Revenues.The IMC shall determine Excess Revenues for Intertie Operating Costs independent from Intertie Administrative Costs. 7.4.4.1.Should the annual revenues received from all sources for Intertie Operating Costs under Section 7.4.1,Participant and User_Payments,exceed actual annual Intertie Operating Costs,the revenues in excess of the Intertie Operating Costs shall.be allocated to the contributing Participants and Users in proportion to the total dollar amount paid by all parties for use of the Intertie in the fiscal year,or portion thereof,in which the revenues were accrued. 74.4.2 Should the annual revenues received from all sources for Intertie Administrative Costs under Section 7.4.Participant and User Payments,exceed actual annual Intertie Administrative Costs,the revenues in excess of the Intertie Administrative Costs shall be allocated to the contributing Participants and Users in proportion to the total dollar amount paid by all parties for the Intertie Administrative Costs in the fiscal year,or portion thereof,in which the revenues were accrued. 7.44.3 The IMC shall authorize AEA to refund the Participants and Users their proportionate share of any excess determined under this Section 7.4.4,Excess Revenues. 7.4.5 Revenue Deficiencies.The IMC shall determine Revenue Deficiencies for Intertie Operating Costs independent from Intertie Administrative Costs. TASA Should the revenues received under Section 7.4.1, Participant_and User Payments,be less than the actual Intertie Operating Costs incurred,the revenue deficiency shall be allocated between the Participants and Users in the same proportional manner as revenues are re-allocated between the Participants and Users under Section 7.4.4.1. Page 16 of 46 -Second Amended and Restated Alaska Intertie Agreement Commented (TW3]:7.4.3 requires billing to be the "greater of”.I've been aut of the loop for a while,but I'm guessing this isn't happening.Easy enough to do.Need to pass this by Al,Burke and Jeff.Also would need consistency on measuring energy when close. to zero (ie,if for two hours the flow was 1 MW in for %an hour, then 1 MW out for %and hour and the same for the second hour, do you count this as 0 MWh for the month,or 1 MWh one way and 1 MWh the other direction?).{used to do the accounting by : schedule only,and |suspect that's still what's happening. 12.1.2 contracting with qualified parties to perform maintenance on its behalf. Maintenance shall be scheduled,coordinated,and accomplished in accordance with Prudent Utility Practices so as to minimize disturbances on the Intertie that would impair service on the Participants'systems. Availability.The Intertie shall be maintained in good working condition, optimizing the availability of the Intertie within practical operational and cost constraints.After a failure on the Intertie,the Intertie shall be returned to service in the shortest possible time within the constraints of practical maintenance procedures and Prudent Utility Practices. Section 12.2.Maintenance Budget and Costs 12.2.1 12.2.2 Section 13.1 Development of Budget.The IMC shall develop an annual maintenance budget and a schedule for the maintenance on the Intertie each year based on the budgets developed by the contractors providing Intertie maintenance.This budget will be reviewed with the Participants and Users sufficiently in advance of the commencement of the fiscal year covered so that each Participant or User will be able to submit its comments for consideration prior to finalization of the budget.Budgets for more than one year will be required for the Participants' and Users'long range fiscal planning requirements.The IMC will prepare and furnish the Participants and Users a copy of the long range fiscal requirements for the Intertie,or a forecast of such requirements. Cost Records.AEA,in cooperation with the IMC,shal!maintain complete and accurate records of costs associated with maintenance of the Intertie.Costs associated with maintenance of the Intertie will be recorded using the system of accounts prescribed for public utilities and licensees by the Federal Energy Regulatory Commission. Article 13. MEASUREMENT OF ELECTRIC POWER AND ENERGY Required Metering Facilities The electric power delivered through interconnection facilities of the Intertie shall be measured by nonreversible watt-hour meters and 15-minute interval demand meters. Section 13.2 Access to Metering Facilities and Data The IMC is responsible for the operation and maintenance of the facilities necessary to interface with points of interconnection.The equipment at these points of interconnection is necessary to provide for Intertie operation only.The IMC shall provide for the use of available metered Intertie data output for Participants or Users for the purpose of providing data necessary for their operations. Page 30 of 46 -Second Amended and Restated Alaska Intertie Agreement ceo Commented [TW4)]:The IMC has much on its table,just areminderthat12.2.1 requires long range fiscal requirements for the Intertie (ie budgeting for more than a year). entities utilizing the Intertie will be allocated losses based on their percentage share of the Energy transferred in their respective Control Area.If no Energy is transferred,losses will be allocated according to MITCR shares. Article 15. RIGHTS OF USERS The rights and responsibilities of a User shall be set out ina User Agreement adopted by the IMC pursuant to Section 8.6.2,Intertie User Agreements.Non-Participant Users shall not be directly responsible for the management,operation,maintenance or improvement of the Intertie,but shall have the same rights,obligations,and responsibilities as a Participant with respect to compliance with operating policies and procedures,any applicable Reliability Standards and the provisions of Section 8.7,Payment Obligation Unimpaired and Article 20,INDEMNITY. Article 16. OPEN ACCESS PRINCIPLES Section 16.1 Definition "Open Access”means that all potential Users of the Alaska Intertie shall be provided access to transmission service on the Alaska Intertie under common terms and conditions that are just and reasonable and not unjustly discriminatory,subject to a priority reservation of Capacity for power supply contracts with AEA projects,and equal access to Intertie system information the IMC has deemed critical for all potential Users. Section 16.2 Purpose The policies and procedures for the operation of the Intertie shall make use of Open Access principles where practicable. Section 16.3 Implementation of Capacity Allocation Methodology The IMC shall use the process and principles in this Section 16.3 as guidance when developing a proposed allocation methodology for Intertie Capacity. 16.3.1 New Methodology.The IMC shall develop and implement a methodology for the allocation of Intertie Capacity,approved by AEA pursuant to Sections 6.2.4 IMC Authority to Change Capacity Allocation Methodology,and 8.6.7 Maxinium Capability and Capacity Allocation,before July 1,2013.The methodology shall use and incorporate Open Access and other principles set forth in this Article..'|Commented [TW5]:it would be a good idea to clean up the .7 16.3.1 language (or at least cite that it happened and what the results were)having to do with the new capacity allocation methodology.16.3.2 Statutory Conditions.The allocation of Intertie Capacity shall comply with statutory conditions,including that the allocation provide a method by which municipal electric,rural electric,cooperative electric,or private electric and regional electric authorities,or other persons authorized by law to engage in Page 32 of 46 -Second Amended and Restated Alaska Intertie Agreement MUNICIPAL LIGHT AND POWER COMMISSION January 22,2014 The meeting of the Municipal Light &Power Commission was held January 22,2014 at the Municipal Light &Power Administration Building Main Conference Room, Anchorage,Alaska.Vice-Chairman Tregarrick Taylor called the meeting to order at 12:00 p.m. I.Call to Order and Roll Call:Vice-Chairman,Tregarrick Taylor. Il.ML&P Commission members present and establishing a quorum were: Ms.Judith Brady joined by teleconference Mr.Robert Shake joined by teleconference Mr.Johnny Gibbons Mr.Tregarrick Taylor Mr.Dale Nelson Administration in attendance were: Mr.Daniel W.Kendall,Acting ML&P General Manager Mr.Richard E.Miller,CFO &Assistant GM Ms.Veronica Dent,Director,Public Relations Mr.Jeff Warner,Power Management Ms.Beverly Jones,Manager,Customer Service Mr.Vincent Perez,Safety Officer Ms.Patsy Gunn,Manager,Administration Mr.Lou Agi,Administration Ms.Linda Davidovics,Board Secretary Audience: Mr.Raj Bhargava Mr.Randy Hobbs Mr.Robert Reimes Mr.Nat Hertz,Anchorage Daily News II.APPROVAL OF MINUTES:December 11,2013 Vice-Chairman Tregarrick Taylor tabled the December 11,2013 minutes for the February meeting. Municipal Light &Power January 22,2014 Commission Meeting Page 1 of 3 IV.SAFETY SUCCESS:Vincent Perez,ML&P Safety Officer e Provided information received from State of Alaska,Occupational Safety & Health Administration (AKOSH)report on the Accident Investigation Findings which occurred July 24,2013 at Plant 1.AKOSH tasked ML&P with 8 corrective actions.All corrective actions have been completed and submitted to the AKOSH investigator. V.STAFF REPORTS: A.ML&P General Manager Report,Daniel W.Kendall Informed Bruce Aspray provided a written Generation Report on Plant 2A. We plan to meet with all the utilities,Matanuska Electric Association,Chugach Electric Association,Homer Electric Association,and Golden Valley Electric Association. e Homer Electric Association will be coming on line with their own generation and operational issues. B.CFO &Assistant General Manager Report,Richard E.Miller e Provided and explained in detail the ML&P Cash Flow Project. C.ML&P Contribution Report,Veronica Dent e Provided information on each proposal:1.Alaska Center for the Book &Anchorage Public Library 14™Annual Reading Rendezvous.2.Anchorage Project Access (Christian Health Associates).3.Beans Café:The Children's Lunchbox and Bean's Café meals program.4.Friends of the Library,Beyond the Stacks.5.Girl Scouts of Alaska.6.Iditarod Trail Sled Dog Race Ceremonial Start,and,7.Spirit of Youth. The ML&P Contributions Committee did not approve the following proposals: The American Public Works Association Alaska Chapter,Anchorage Promise, Armed Forces Communications &Electronics Association Alaska,Armed Services YMCA. Discussion took place on each proposal.The Iditarod Trail Sled Dog Race Ceremonial Start proposal was selected for approval.Proposals submitted from the ML&P Contribution Committee will be brought up in the next ML&P Commission meeting. Tregarrick Taylor,Vice Chairman called a motion to approve the Iditarod Trail Sled Dog Race Ceremonial Start proposal. MOTION:Dale Nelson moved to approve the Iditarod Trail Sled Dog Race Ceremonial Start proposal.Seconded by Judy Brady.Motion passed unanimously. Municipal Light &Power January 22,2014 Commission Meeting Page 2 of 3 VI.PUBLIC COMMENTS: e Randy Hobbs requested to meet and give a special presentation on Repowering of the Knik Arm Power Plant. e Raj Bhargava requested information on the underlift and overlift of natural gas for 2013.Rick Miller provided information on the cumulative underlift amount at year end 2012. VI.COMMISSIONER COMMENTS:None. VII.NEXT MEETING DATE:A Special Work-session,February 13,2014;and the regular ML&P Commission meeting,February 26,2014. IX.EXECUTIVE SESSION:None. X.ADJOURNMENT: Vice Chairman Tregarrick Taylor called a motion to adjourn: By unanimous consent the ML&P Commission meeting was adjourned. The ML&P Commission meeting adjourned at 12:45 p.m.,January 22,2014. ATTEST: Linda Davidéics,ML&P Board Secretary Judi .ra ,Chairman Minutes appfoved?.th,2014 ML&P\Commission Municipal Light &Power January 22,2014 Commission Meeting Page 3 of 3 CHUGACH ELECTRIC ASSOCIATION,INC. Anchorage,Alaska March 26,2014 Wednesday 4:00 p.m. REGULAR BOARD OF DIRECTORS'MEETING Recording Secretary:Paula Neas-Arnold,Executive Secretary I.CALL TO ORDER Chair Reiser called the Special Meeting of the Board of Directors to order at 4:02 p.m.in the boardroom of Chugach Electric Association,Inc.,5601 Electron Drive,Anchorage,Alaska. A,Pledge of Allegiance Chair Reiser led the Board in the Pledge of Allegiance. Roll Call Board Members Present: Janet Reiser,Chair Susan Reeves,Vice Chair Sisi Cooper,Treasurer Jim Henderson,Secretary Harry Crawford,Director Jim Nordlund,Director Board Member Excused Absence: David Gillespie,Director Guests and Staff in Attendance: Brad Evans Ed Jenkin Mark Johnson Ron Vecera Tom Schulman Jeff Landfield, Bylaws Committee Safety Minute Paul Risse . Sherri McKay-Highers Teresa Kurka Arthur Miller Kate Ayers Brian Hickey Marilyn Leland,APA Lee Thibert Arden Quezon-Vicente Tyler Andrews Mark Fouts Phil Steyer Jim Torgerson, Stoel Rives,LLP Tyler Andrews,Vice President,Member and Employee Services discussed "Protecting Employees from Silica Dust”and responded to questions from the Board of Directors. II.APPROVAL OF THE AGENDA Director Reeves moved and Director Nordlund seconded the motion to approve the meeting agenda.The motion passed unanimously. DRAFT-Regular Board of Directors'Meeting Minutes March 26,2014 Page |of 5 II.PERSONS TO BE HEARD A,Wholesale Customer and Member Comments None Tom Schulman,Paralegal introduced Jeff Landfield,the Chugach Bylaws Committee chair and Board of Directors nominee. IV.CONSENT AGENDA A.Board Calendar B.Training and Conferences i.Northwest Public Power Association 2014 Annual Conference and Membership Meeting -Billings,MO -May 18-22,2014,(Deadline for meeting registration and hotel reservations is April 17,2014) ii.Alaska Power Association Federal Legislative Conference -Washington D.C.-June 17-19,2014,(Deadline for meeting registration and hotel reservations is May 14,2014) C.Minutes i.February 19,2014,Regular Board of Directors'Meeting (Quezon- Vicente) ti,March 12,2014,Special Board of Directors'Meeting (Scott) D.Director Expenses Director Reeves requested that Alaska Center for the Environment Conference on March 7,2014,be added to the Board of Directors calendar.No objections were made. Director Reeves moved and Director Nordlund seconded the motion to approve the consent agenda as amended.The motion passed unanimously. V.CEO REPORTS AND CORRESPONDENCE A.1"Quarter 2014 Railbelt Comparison (Miller) Nick Horras,Pricing and Market Analyst discussed the 1 Quarter 2014 Railbelt Comparison and responded to questions from the Board. January 2014 Financial Statements and Variance Report (Harris/Wolfe) January 2014 Financial Statements and Variance Report were provided in the meeting packet but no formal report was given. Renewable Energy Path -Confidential (Vecera/Thibert) Lee Thibert,Senior Vice President,Strategic Development and Regulatory Affairs provided an update on the Renewable Energy Path Report and responded to questions from the Board. Transmission Integration -Confidential (Thibert/Evans) Lee Thibert,Senior Vice President,Strategic Development and Regulatory Affairs provided an update on the Transmission Integration Report and responded to questions from the Board. DRAFT-Regular Board of Directors'Meeting Minutes March 26,2014 Page 2 of 5 E.4th Quarter 2013 Key Metrics Dashboard (Vecera)The 4"Quarter 2013 Key Metrics Dashboard was provided in the meeting packet but no formal report was given. VI.DIRECTORS REPORTS A,APA Report Director Cooper reported there were no APA meetings. Director Cooper reported on the upcoming industry events: i.APA Environmental Committee Workshop on May 13,2014,at APA. ii.The Business of Clean Energy Conference on May 1-2,2014,at the Dena'ina Convention Center.Director Reiser stated that any Board members who wish to attend should notify Arden Quezon-Vicente. iii,|NRECA Legislative Conference is on May 4-7,2014,in Washington DC. iv.Save the date for the National Hydropower Conference on June 11-12, 2014,in Ketchikan. Chair Reiser requested the NRECA Legislative Conference and the National Hydropower Conference dates be added to the Board calendar. Director Reeves inquired about the agenda for the APA Federal Legislative Fly- in and requested the Board be able to review and discuss the agenda items in advance of the DC trip.Chair Reiser added that she would like to review the Legislative agenda at the Operations Committee and Regular Board of Directors meeting in May.Director Cooper confirmed she will follow up with Crystal Enkvist at APA.Chair Reiser also directed the Board members to forward any ideas or additions to the agenda for the APA Fly-in Legislative to Director Cooper. B. ARCTEC Report Chair Reiser reported that the ARCTEC Quarterly meeting was canceled. C.Board Committees Director Reeves reported on the information received by the Governance Committee. Director Crawford and Chair Reiser reported on the REAP Public Policy Committee meeting on March 25,2014,the meeting was held at the Chugach Boardroom and Brad Evans and Brian Hickey gave a presentation on the ISO model. Chair Reiser and Director Reeves met with the Alaska Center for the Environment and they have requested to meet with Brian Hickey to further discuss the ISO model. DRAFT -Regular Board of Directors'Meeting Minutes March 26,2014 Page 3 of 5 Vil. VIII. IX. Director Reeves reported on the NRECA meeting and responded to questions from the Board. D.Other Meeting Reports None UNFINISHED BUSINESS None Director Henderson moved and Director Cooper seconded the motion to excuse Director Gillespie from the March 26,2014,Regular Board of Directors meeting.The motion passed unanimously. NEW BUSINESS A.Approval of Non-Represented Updated Salary Plan*(Andrews) Tyler Andrews,Vice President,Member and Employee Services provided an update on the Non-Represented Updated Salary Plan and responded to questions from the Board. Director Cooper moved and Director Reeves seconded the motion that the Board of Directors approve the salary mid-points as the basis for the Non- Bargaining Unit Salary Plan administration. After discussions and comments,Chair Reiser called for a vote.The motion passed unanimously. EXECUTIVE SESSION A.Strategic Planning i.Legislative Update ii.Rate Case Final Order Update iii.Board Policy 106,Section B.,No.9 -Wage and Salary Administration Discussion iv.MEA Capital Credits Update v.Fire Island Wind Update vi.CEO Evaluation and Performance Matrix Discussion At 4:39 p.m.,Director Reeves moved and Director Crawford seconded the motion that pursuant to Alaska Statute 10.25.175 (c)(1),(2)and (3)the Board of Directors go into executive session to discuss:1)financial matters,the immediate knowledge of which would clearly have an adverse effect on the finances of the cooperative as it relates to an update on legislative matters,a discussion of the final order in the Association's 2012 Test Rate Case,Board Policy 106 -Delegation of Authority regarding the Wage and Salary Administration,the Fire Island Wind Project;2)financial matters and attorney- client privileged communications,the immediate knowledge of which could have an adverse effect on the legal position of the cooperative as it relates to Matanuska Electric Association,Inc.'s capital credits;and,3)personnel matters that may tend to prejudice the reputation or character of a person as it relates to the CEO evaluation,performance DRAFT -Regular Board of Directors'Meeting Minutes March 26,2014 Page 4 of 5 XI. matrix;however,the person may request a public discussion.The motion passed unanimously. The meeting reconvened in open session at 8:25 p.m. DIRECTOR COMMENTS Director comments were made at this time. ADJOURNMENT At 8:36 p.m.Director Reeves moved and Director Crawford seconded the motion to adjourn the meeting.The motion passed unanimously. James Henderson,Secretary Date Approved:April 23,2014 DRAFT -Regular Board of Directors'Meeting Minutes March 26,2014 Page 5 of 5 GOLDEN VALLEY ELECTRIC ASSOCIATION,INC. BOARD OF DIRECTORS' MEETING MINUTES March 31,2014 Fairbanks,Alaska The regular meeting of the Board of Directors of Golden Valley Electric Association,Inc.was held in the Employee/Board Meeting Room in the Operations Building on March 31,2014. PRESENT Directors:Bill Nordmark,Chairman;Tom DeLong,Vice Chairman;Rick Schikora,Treasurer;John Sloan,Secretary;Aren Gunderson (video- conference);Frank Eagle and Chris Bunch. Staff:Cory Borgeson,President &CEO;John Burns,General Counsel; Lynn Thompson,Vice President Power Supply;Ron Woolf,Chief Financial Officer;Susan Redlin,Administrative Assistant and Lance Hardesty,Leidos Enginnering. Members:Whit Hicks,District 6;Gary Newman District 4 and Robert Shields,District 1. CALL TO ORDER Chairman Nordmark called the meeting to order at 5 p.m.A quorum was present. EXECUTIVE SESSION At 5:01 p.m.,without objection,the Board convened into Executive Session to discuss legal and financial issues (Healy 2,Flint Hills,LNG Project,Attorney's Reports,Annual Insurance Review and AlasConnect Report),the immediate knowledge of which could have an adverse impact to the Association. At 5:59 p.m.,without objection,the Board came out of Executive Session. BREAK At 6 p.m.,Chairman Nordmark declared a break. MEETING RESUMED At 6:07 p.m.,the meeting resumed;members joined the meeting. SAFETY MOMENT Mr.Borgeson reminded everyone to be careful in parking lots as the snow is melting in the daytime and freezing at night resulting in slick conditions. He also reminded everyone to make sure their windshield washer fluid is full as melting snow on the road requires us to clean our windshields often. MEMBER Member Comments COMMENTS/MAC Robert Shields,Executive Director for the Alliance for Reason and REPORT Knowledge,requested to present to the Board a proposal to place solar panel on schools in the Fairbanks area. Gary Newman commented on Kauai Island Utility Cooperative's solar energy project and asked about the status of price signaling. GOLDEN VALLEY ELECTRIC ASSOCIATION,INC. BOARD OF DIRECTORS' MEETING MINUTES March 31,2014 Fairbanks,Alaska MAC Report Whit Hicks reported on the March 12,2014 MAC Meeting: e MAC members volunteered to work at the 2014 Annual Meeting. e MAC members volunteered for a task force to recommend to the Board for approval new MAC members and new Good¢ents trustees to replace two recently resigned trustees. e The Board was represented by Rick Schikora;he spoke about issues that the Board is working on. e Corinne Bradish gave an overview of the upcoming 2014 Annual Meeting and advised members of an AIDEA sponsored open house regarding the "Interior Energy Project'. e The MAC members requested monthly updates on the Flint Hills and the Healy 2 Project. e A suggestion that GVEA conduct an energy audit by an outside agency to see how GVEA's energy usage might be reduced. APPROVAL OF THE Mr.Sloan moved to approve the Agenda and adopt the Consent Agenda. AGENDA AND Mr.Eagle seconded the motion.ADOPTION OF THE CONSENT AGENDA Mr.Schikora requested a clerical correction to the February 18 and 19, 2014 Board Retreat Minutes (fo reflect that the Board convened for dinner at 7 p.m.on February 18 and reconvened after dinner to meet with Monica Schmidt until after 9:30 p.m.). Mr.Schikora inquired about the costs for the Parliamentarian to serve at the 2014 Annual Meeting ($300). Following,the motion passed. The Consent Agenda included: e Approval of the February 14,2014 Special Board Meeting Minutes. e Approval of the February 18 and 19,2014 Board Retreat Minutes. e Approval of the February 24,2014 Regular Board Meeting Minutes. e Appointment of the Parliamentarian and Recording Secretary for the 2014 Annual Meeting. e Approval of the Voting Delegate for the NWPPA Annual Meeting. e Review of the Safety Officer's February 2014 Monthly Report. e Approval of Resolution No.106-14:Authorizing the Change of the Association's Registered Agent: WHEREAS,pursuant to AS 10.25.470 Golden Valley Electric Association is required GOLDEN VALLEY ELECTRIC ASSOCIATION,INC. BOARD OF DIRECTORS' MEETING MINUTES March 31,2014 Fairbanks,Alaska under Alaska law to submit changes to the Association's registered agent to the Department of Commerce,Community &Economic Development. BE IT HEREBY RESOLVED,that John J.Bums,Local General Counsel,is hereby authorized to serve as the Association's registered agent and that Cory R.Borgeson, President &CEO will file the change with the State of Alaska as follows: Pursuant to AS 10.25.470,the undersigned corporation organized under the laws of the State of Alaska,submits the following statement for the purpose of changing the registered agent; Name:Golden Valley Electric Association,Inc. Address of registered office:100 Cushman Street,Suite 311 Fairbanks,AK 99701 Address of new registered office:same Name of old registered agent:Cory R.Borgeson Name of new registered agent:John J.BurnsHAAwOfoo The address of the registered office and the business office of the Registered Agent,as changed,remains the same.This change in registered agent has been authorized by a resolution duly adopted by the Board of Directors of Golden Valley Electric Association,Inc. APPROVE Chairman Nordmark introduced Resolution No.103-14: RESOLUTION NO.103- 14 WHEREAS,Golden Valley Electric Association,Inc.("Golden Valley”)is an electric cooperative eligible to use the Simplified Rate Filing (SRF)procedures pursuant to AS 42.05.381(e)and 3 AAC 48.700 ef seq.;and WHEREAS,since the last SRF approved by RCA in November 2013,Golden Valley has experienced increases in the costs of its operations without corresponding increases in revenues;and WHEREAS,the increase in operating costs without a corresponding increase in revenues reduces Golden Valley's operating margins and impairs its financial ratios;and WHEREAS,Golden Valley is required by its lenders to maintain certain levels of operating margins and financial ratios;and WHEREAS,Golden Valley's financial forecast projects a need for a rate increase. BE IT HEREBY RESOLVED,that Golden Valley in accordance with SRF standard procedures,with a target Operating Times Interest Earned Ratio (OTIER)of 1.79,approves the rate increases listed on ATTACHMENTA that are necessary to maintain asoundfinancialposition. GOLDEN VALLEY ELECTRIC ASSOCIATION,INC. BOARD OF DIRECTORS' MEETING MINUTES March 31,2014 Fairbanks,Alaska ATTACHMENT A To Board of Director Resolution 103-14 Pursuant to SRF Schedule 13,Summary of Rate Changes Required to Meet Target OTIER SRF Test Year Ended December 31,2013 Utility Rates -Existing and Pursuant to Current Filing Existing Rates Current Pursuant per SRF to Current Rate Class TA 247-13 Escalator (1)SRE (1),(2) 'Ressental $0.10001 1.034 S$0.10341 General Service GS-1 0.09912 1.034 0.10249 Large General Service -Secondary GS-2(S)0.08379 1.034 0.05562 Large General Service -Primary GS-2(P)0.05379 1.034 0.05562 industrial Service GS-3 0.02528 1.034 0.02614 Demand Rates -Existing and Pursuant to Current Filing Existing Current Pursuant per Order SRF to Current Rate Class TA 247-13 Escalator (1)SRF (1),(2) Large General Service -Secondary GS-2(S)$s 12.28 1.034 $12.70 Large General Service -Primary GS-2(P)12.28 1.034 12.70 Industrial Service GS-3 19.65 1.034 20.32 Standby Service Rates -Existing and Pursuant to Current Filing Existing Current Pursuant per Order SRF to Current Rate Class Existing Escalator (1)SRF (1),(2) General Sermce GS-1 s 6.59 1.034 $8.88 Large Genera!Service -Secondary GS-2(S)9.81 1.034 10.14 Large General Service -Primary GS-2(P)9.81 1034 10.14 industial Service GS-3 45.78 1.034 16.32 Transmission Rates -Existing and Pursuant to Current Filing Existing Current Pursuant per Order SRF to Current Rate Class TA 247-13 Escalator (1)SRF (1),(2) Scheduling,System Control,and Dispatch Service,T-1 $s 0.1366 1.034 $0.1412 Reactive Supply and Voltage Control Service,T-2 1.2826 1.034 1.3262 Regulation and Frequency Response Service,T-3 0.1986 1.034 0.2054 Spinning Reserve Service,T-5 1.6340 1.034 1.6896 Supplemental Reserve Service,T-6 0.1826 1.034 0.1578 Long-Term Firm and Short-Term Firm Poimt-To-Point Service,T-7 5.6294 1.034 §.8208 (1)The proposed across the board rate increase in this SRF is 3.4%which equales to an lator factor of 1.034.Utility, Demand,Standby,Transmission Rates -Existing and Pursuant to Current SRF Filing:Utility rates are rounded to five digits; demand and standby rates are rounded to the nearest cent;transmission rates are ded to four digits. (2)Transmission Rates:Revenue sssociated with T-1 through T-7 transmission rates is calculated by muttiptying the transmission rate by the kW reserved capacity. Mr.Sloan moved to approve Resolution No.103-14.Mr.Bunch seconded the motion.Following significant discussion,the motion passed. APPROVE Chairman Nordmark introduced Resolution No.104-14: RESOLUTION NO.104- 14 BE IT RESOLVED that John Joseph Burns,Attorney at Law,and the firm of Burns & Associates PC,100 Cushman Street,Suite 311,Fairbanks,Alaska,99701,shall be retained to represent the Cooperative in matters determined by the Board of Directors and staff to require the services of legal counsel;those services to be rendered in accordance with the fees effective April 1,2014 as set forth in the Agreement attached hereto. GENERAL TERMS REGARDING LEGAL REPRESENTATION The law firm of Burns &Associates,PC (the "Firm")is pleased to serve as your attomeys.The general terms and conditions applicable to our representation of Golden Valley Electric GOLDEN VALLEY ELECTRIC ASSOCIATION,INC. BOARD OF DIRECTORS' MEETING MINUTES March 31,2014 Fairbanks,Alaska Association,Inc.("GVEA")are set out below. I Scope of Services. A.The Firm has been retained to assist GVEA regarding various matters as you may request,The Firm reserves the right to,at its discretion,decline representation on other specific matters. B.The Firm will not perform legal services other than those authorized by GVEA and then only if the Firm agrees to undertake such work.In which case,the terms and conditions set out herein gover this representation. C.The Firm has assigned an attomey who will be principally responsible for performing or supervising the work to be done by the Firm on GVEA's behalf,and who will be your principal contact with respect to billing.The Firm reserves the right to reassign the responsible attomey for your matters,and to assign such Firm attomeys,paralegals,and law clerks as necessary or desirable,in our judgment,to perform these legal services. D.GVEA agiees to perform the following obligations:To pay the Firm for the performance of the Firm's legal services and topayforallexpensesincurredinconnectiontherewith,as specified below in this agreement. 2.To cooperate fully with the Firm and to provide to the Firm all information known by or available to you which may aid the Firm in representing GVEA. ie Legal Fees and Expenses. A.The bills for our legal services are based principally on the time spent by us on your behalf.Our hourly rates are set out on Exhibit "A”attached hereto.These rates do not include the other fees,charges,costs,and expenses described below.The Firm reserves the right to increase or otherwise change these rates from time to time,but we do not anticipate any changes in the immediate future.We will notify you of changes in rates at the time of your receipt of the billing statement. B.GVEA hereby authorizes the Firm to retain,upon preapproval by GVEA,and GVEA hereby agrees to pay the fees and charges of every other person or entity,such as accountants, investigators,title examiners,escrow agents,or other attorneys hired for ancillary matters in other localities,who are hired by the Firm to perform necessary services related to work done in representing you.GVEA authorizes the Firm,in our discretion,to direct such persons and entities to render billing statements either directly to GVEA or to the Firm.It is the Firm's policy that if any single cost or expense will exceed $1,000.00,the Firm may make arrangements for that expense to be billed directly to GVEA for payment.It is agreed that GVEA must preapprove any expenses that exceed $1,000.00.GVEA shall be responsible for reimbursing the Firm for in-house expenses and third-party expenses (upon preapproval by GVEA)incurred on your behalf.Such expenses may include applicable filing fees,recording fees,facsimile services,courier services, photocopying at $0.20 per page,long distance telephone charges,postage,expedited mail or delivery services,travel expenses,service of process fees,deposition transcripts,stenographer fees,computer-assisted legal research fees,title insurance premiums,and other similar charges. There is no charge for the services of our secretarial staff unless unusual circumstances arise, such as the necessity for work requiring overtime.GVEA agrees to reimburse the Firm for all such expenses incurred by the Firm,or,if GVEA is billed directly for these expenses,to make timely payment to the originators of the bills. C.Our procedure for billing is to record all billable time during a 30-day period.An invoice for that period's attomey's fees,costs,expenses,and disbursements will be submitted to you after the 15th of each month for payment.The Firm reserves the right to submit special billing statements from time to time on other than a 30-day basis.Payment of our billing statements is GOLDEN VALLEY ELECTRIC ASSOCIATION,INC. BOARD OF DIRECTORS' MEETING MINUTES March 31,2014 Fairbanks,Alaska due upon receipt.We may change this rate with notice to you at the time of billing. th.General. A.The Firm has responsibilities under the applicable rules of professional conduct goveming the practice of law.We will represent your interests within these ethical guidelines. B.At all times you have the right,with or without cause,to terminate our services upon written notice to that effect.Subject to the applicable rules of professional conduct governing the practice of law,the Firm reserves the right to terminate its services to you,with or without cause, and the Firm shall withdraw in the following circumstances: 1.If you fail to cooperate with us in any reasonable request; 2.If our continuing to act would be unethical or impractical; lf you fail to comply with any of the terms and conditions set forth in this fetter,including the failure to pay our billing statements or third-party costs as agreed;or 4.If continued representation of you would be unethical or involve a conflict of interest of such nature to prevent us from proceeding. 5.Notification of withdrawal shall be made in writing to you.In the event of such withdrawal or termination,you agree to promptly pay the Firm for all services rendered by the Firm and all other fees,charges,and expenses incurred as agreed. C.in accordance with applicable law,the Firm is entitled to claim an attorney's lien upon your claims,causes of actions,settlements,judgments,recoveries,funds,and proceeds thereof, and in the documents,records,and files in the Firm's possession or under the Firm's control in this matter. D.It is further understood that in a matter involving litigation or other adversarial proceedings,you may become liable to the court or to an adverse party for sanctions,fines,or for attomeys fees and costs under certain circumstances,Including,but not limited to,failure to succeed in prosecuting the claim or cause of action,failure to comply with court rules or court orders,or not being the prevailing party.If applicable,we will attempt to recover for you the payment of fees and costs through any insurance policies,indemnification agreements,or as allowed by law.However,you understand that you are responsible for payment of the fees and costs described in this agreement,regardless of whether they are recovered on your behalf. E.Subject to any circumstances or events beyond the control of the Firm,and subject to the transfer of the files to another attomey at your request,the Firm agrees to retain and maintain all major and significant components of the files relative to our representation of your specific matters for a period of six years following the conclusion of this matter.During such time we will afford you reasonable access to such files.The Firm will deliver to you the originals of any transactional documents or of any documents you may have provided to us from your files at the time we close our files.It is understood that certain documents prepared by the Firm or contained in the files may constitute the Firm's work-product,are owned by the Firm,and cannot be transferred or released by you to any third party without the Firm's prior express consent. F.The agreement between you and the Firm shall be govemed under the laws of the State of Alaska,and sole venue for any action or legal proceeding shall be in the courts of the State of Alaska. Mr.Schikora moved to approve Resolution No.104-14.Mr.Sloan seconded the motion.Following discussion,the motion passed. GOLDEN VALLEY ELECTRIC ASSOCIATION,INC. BOARD OF DIRECTORS' MEETING MINUTES March 31,2014 Fairbanks,Alaska APPROVE Chairman Nordmark introduced Resolution No.105-14: RESOLUTION NO.105- 14 WHEREAS,the Golden Valley Electric Association,Inc.(GVEA)Board has determined that the financial condition of the Cooperative will not be impaired,nor will the terms of GVEA's mortgage with RUS or the terms with GVEA's other lenders be impaired by making early capital credit retirements;and WHEREAS,GVEA's 2014 Approved Budget budgets $2,250,000 to Capital Credit Retirements;and WHEREAS,Policy 5.3 (G)allows early retirement of Capital Credits for 1)those of voluntarily dissolved corporations that have been duly documented by the appropriate state authority and that have been offered by the president of the corporation or other authorized official or successor for the corporation;2)those of corporations which have been duly liquidated through the federal bankruptcy laws and which have an appropriate order of the bankruptcy court that effectively discharges the corporation of its debts and permits the assignment of the liquidated corporation's capital credits;3)those of members'purchasing power under a non-firm purchase agreement;4)any member whose delinquency in paying his utility bill has caused the Association to discontinue its electric service to that member;or 5)any member who has terminated his membership with the Association and wishing to retire his capital credits at the discount rate in effect at that time. NOW THEREFORE,BE IT RESOLVED,by the Board of Directors of GVEA that up to $750,000 be authorized for early discounting and retirement of Capital Credits to 1) those of voluntarily dissolved corporations that have been duly documented by the appropriate state authority and that have been offered by the president of the corporation or other authorized official or successor for the corporation;2)those of corporations which have been duly liquidated through the federal bankruptcy laws and which have an appropriate order of the bankruptcy court that effectively discharges the corporation of its debts and permits the assignment of the liquidated corporation's capital credits;3)those of members'purchasing power under a non-firm purchase agreement;4)satisfy outstanding debt owed by members to GVEA (in excess of 90 days);and,5)any member who has terminated his membership with the Association and wishes to retire his capital credits at the discount rate in effect at that time. Mr.Schikora moved to approve Resolution No.105-14.Mr.Eagle seconded the motion.Following discussion,the motion passed. ONGOING REPORTS ALASKA POWER ASSOCIATION REPORT -Mr.Schikora reported that the executive recruitment to find a replacement for Marilyn Leland,APA Executive Director,will be closing in the next few weeks.Following, interviews will be scheduled. ARECA INSURANCE EXCHANGE REPORT-Mr.Schikora reported that at its March 11,2013 Exchange meeting,the AIM Board approved the 2013 Income Allocation. CALENDAR -The Board reviewed its calendar;they changed the May GOLDEN VALLEY ELECTRIC ASSOCIATION,INC. BOARD OF DIRECTORS' MEETING MINUTES March 31,2014 Fairbanks,Alaska 2014 Board Meeting from May 19 to May 12. MAC BOARD REPORT -Mr.Schikora reported on the March 12,2014 MAC Meeting: e He updated the MAC on issues that the Board has been working on since December 2013 MAC meeting. He updated the MAC on the closure of the Flint Hills refinery. e He reported that the MAC may want to have only a one month break during the winter in order to reduce the time between meetings. Mr.Schikora suggested to the Board that GVEA's internal Conservation Team attend a future MAC meeting to report GVEA's efforts to lower its energy usage (150 Intelligent Parking Lot Controllers (IPLC)in the Fairbanks parking lot and decreasing the brightness of the lot by 40 percent of the lot lights and reducing the energy of the "bull rail”where the Vehicle Shop rigs are plugged in.) MANAGEMENT REPORTS CEO REPORT-In addition to his written report,Mr.Borgeson reported on the following:House Bill 367 for fuel tank storage,the proposed LNG project and Ft.Knox's concerns regarding electrical energy costs and their proposal to purchase/wheel power from MEA. PROGRESS REPORTS -The Board reviewed the Division Progress Reports. FINANCIAL REPORTS --The Board reviewed the Financial Reports. DIRECTOR COMMENTS Mr.Eagle said he is anxious to get LNG to Fairbanks and to convert the North Pole Expansion Plant to use LNG.He also said he is concerned about authorizing expenditures for Healy 2. Mr.DeLong said he is reviewing and trying to understand GVEA's SNAP Tariff.If re-elected,he wants to reinvigorate the SNAP Program. Mr.Schikora reported he attended the recent NRECA Directors' Conference and attended a class on Enterprise Risk Management. Mr.Gunderson reported that he also attended the Directors'Conference; some sessions were better than others.He requested that future board meetings be noticed on Facebook page and/or GVEA's Blog.He said he is in favor of adding Robert Shields to a future GVEA agenda to talk about solar in Fairbanks.He looks forward to teaching "tech-minutes”at future board meetings,and said that the video conferencing tonight went well. GOLDEN VALLEY ELECTRIC ASSOCIATION,INC. BOARD OF DIRECTORS' MEETING MINUTES March 31,2014 Fairbanks,Alaska Chairman Nordmark reported that Senator Murkowski visited and toured Healy Power Plantd 1 and 2.She is sympathetic about GVEA's problems with the EPA. BREAK At 7:51 p.m.,Chairman Nordmark declared a break.The meeting resumed at 8:01 p.m. EXECUTIVE SESSION At 8:02 p.m.,without objection,the Board convened into Executive Session to discuss legal and financial issues (Healy 2,LNG Project, Attorney's Reports,Annual Insurance Review and AlasConnect Report), the immediate knowledge of which could have an adverse impact to the Association. At 8:30 p.m.,Chairman Nordmark extended the meeting for 30 minutes. At 8:59 p.m.,without objection,the Board came out of Executive Session. ADJOURNMENT At 9 p.m.,without objection,Chairman Nordmark declared the meeting adjourned. Bill cmaoael Joff Stoan,SecretaryPorefedh\fe Redlin,Recording Secretary GOLDEN VALLEY ELECTRIC ASSOCIATION,INC. BOARD OF DIRECTORS' MEETING MINUTES January 27,2014 Fairbanks,Alaska The regular meeting of the Board of Directors of Golden Valley ElectricAssociation,Inc.was held in the Employee/Board Meeting Room in the Operations Building on January 27,2014. PRESENT Directors:Bill Nordmark,Chairman;Tom DeLong,Vice Chairman;RickSchikora,Treasurer;John Sloan,Secretary;Aren Gunderson and Chris Bunch Staff:Cory Borgeson,President &CEO;John Burns,General Counsel; Thomas Hartnell,Vice President Administrative Services;and Luann Berkley,Administrative Assistant Members:Nancy Shafer,District 3 ABSENT Directors:Frank Eagle CALL TO ORDER Chairman Nordmark called the meeting to order at 5:01 p.m.A quorum was present. EXECUTIVE SESSION At 5:02 p.m.,without objection,the Board convened into Executive Session to discuss legal and financial issues (LNG Project,Coal Contract and Pension Update),the immediate knowledge of which could have an adverse impact to the Association. At 6:15 p.m.,without objection,the Board came out of Executive Session. ,At 6:16 p.m.,Chairman Nordmark declared a break. MEETING RESUMED At 6:22 p.m.,the meeting resumed;a member joined the meeting. SAFETY MOMENT Mr.Borgeson reminded everyone to be conscientious of the flu season and take steps to avoid chances of contamination (wash hands often, etc.). MEMBER COMMENTS |Ms.Shafer had no comments. APPROVAL OF THE Mr.Schikora moved to approve the Agenda and adopt the ConsentAGENDAANDAgenda.Mr.Sloan seconded the motion;the motion passed.ADOPTION OF THE CONSENT AGENDA The Consent Agenda included: e Approval of the December 16 and 17,2013 Regular Board Meeting Minutes. e Approval of the January 13,2014 Special Board Meeting Minutes. GOLDEN VALLEY ELECTRIC ASSOCIATION,INC. BOARD OF DIRECTORS' MEETING MINUTES January 27,2014 Fairbanks,Alaska APPROVAL OF THE AGENDA AND ADOPTION OF THE CONSENT AGENDA (Continued) e Review of the Fourth Quarter 2013 Affirmative Action Plan Report. e Appointment of the Voting Delegates for the 2014 CFC Annual Meeting. e Approval of Resolution No.100-13 Authorizing Michael J.Wright and Steven J.Vorderbruggen to Sign Right-of-Way Leases,Permits, Easements and Other Related Documents on Behalf of GVEA. REVIEW OF THE COLD CLIMATE HOUSING RESEARCH CENTER REPORT Mr.Schikora moved to let the record reflect that the Board reviewed the Cold Climate Housing Research Center Report:GVEA Energy$ense Program Review and Recommendations.Mr.Sloan seconded the motion.Following significant discussion,the motion passed. Staff will contact CCHRC to update/change their report regarding certain factual errors. REVIEW THE SAFETY OFFICER'S DECEMBER 2013 MONTHLY REPORT AND 2013 LOSS CONTROL REVIEW REPORT Mr.DeLong moved to let the record reflect that the Board reviewed the Safety Officers December 2013 Monthly Report and the 2013 Loss Control Review Report.Mr.Sloan seconded the motion;the motion passed. 2014 ELECTIONS: ACCEPT PROPOSED CHANGES Mr.Sloan moved to accept the proposed changes to the 2014 elections as presented.Mr.Bunch seconded the motion.During discussion,Mr. Schikora commented that whatever changes are made to the election process must remain in place for a complete cycle of elections (i.e. through 2016)for consistency sake.Following,the motion passed. 2014 ANNUAL MEETING:ACCEPT THE ANNUAL MEETING COMMITTEE'S RECOMMENDATIONS . AND SET DATES OF RECORD Mr.DeLong moved to accept the Annual Meeting Committee's recommendations as presented.Mr.Bunch seconded the motion;the motion passed. Mr.Schikora moved to accept the Annual Meeting Committee's recommendation to set the Dates of Record for the 2014 Annual Meeting as presented.Mr.Sloan seconded the motion;the motion passed. APPROVE EXECUTION OF THE COAL CONTRACT Mr.Sloan moved to approve execution of the Coal Contract between Usebelli Coal Mine and GVEA in substantial form as presented in Executive Session.Mr.Bunch seconded the motion;the motion passed. ONGOING REPORTS ARECA INSURANCE EXCHANGE REPORT --Mr.Schikora reported that a selection committee has been formed to replace the Executive Director for the Alaska Power Association (APA).(Marilyn Leland is retiring in June 2014.)The next meeting of the committee is scheduled for February 5,2014. GOLDEN VALLEY ELECTRIC ASSOCIATION,INC. BOARD OF DIRECTORS' MEETING MINUTES January 27,2014 Fairbanks,Alaska ONGOING REPORTS Mr.Schikora also fulfilled Mr.DeLong's request to sketch a brief (Continued)organizational chart to help explain how the APA,the ARECA Insurance Exchange and the Alaska Insurance Management (AIM)coexist. ARCTEC REPORT --Mr.Schikora reported that ARCTEC met earlier in the day and discussed potential legislation to create an Independent System Operator to manage the transmission system within the Railbelt, with the RCA to be the moderator.The idea is that the Railbelt utilities will come together to work out the details by a certain date,otherwise the RCA will be empowered to set up a plan for all to follow.Brad Evans,President &CEO of Chugach Electric Association,has been a leader in this effort. CALENDAR -The Board reviewed its calendar.Ms.Berkley reported that the Harper Board Room at the Westmark Hotel has been secured for the upcoming Board Retreat. At 7:40 p.m.,Chairman Nordmark declared a break. MEETING RESUMED At 7:55 p.m.,Chairman Nordmark called the meeting back into session. MANAGEMENT CEO REPORT -In addition to his written report,Mr.Borgeson gave REPORTS updates on Healy Unit 2,AIDIEA's LNG project,the November 14,2013 Winter Storm (declared national disaster by President Obama),the Healy Unit 1 Plant Manager vacancy (interviews continue)and Dave Murrow's preliminary report on GVEA's Public Relations Department. PROGRESS REPORTS -The Board reviewed the Progress Reports. DIRECTORS'e Mr.Schikora reported that he's received favorable comments on the COMMENTS Good¢ents program. e Mr.Sloan reminded the group of the Board Retreat that's scheduled for February 18 and 19 at the Westmark Hotel.Lodging has been secured,and he encouraged everyone to stay the night. e Mr.DeLong stated that he believes the Good¢ents program is accruing community goodwill to GVEA. BREAK At 8:25 p.m.,Chairman Nordmark declared a break. Chairman Nordmark informed Ms.Shafer that the open session had come to an end,and the group would reconvene after the break into Executive Session.Ms.Shafer departed the meeting at 8:25 p.m. At 8:30 p.m.,Chairman Nordmark called the meeting back into session. GOLDEN VALLEY ELECTRIC ASSOCIATION,INC. BOARD OF DIRECTORS' MEETING MINUTES January 27,2014 Fairbanks,Alaska EXTEND THE MEETING At 8:31 p.m.Chairman Nordmark extended the meeting for an additional 30 minutes. EXECUTIVE SESSION EXTEND THE MEETING At 8:32 p.m.,without objection,the Board convened into Executive Session to discuss legal and financial issues (Pension Update,Healy Unit 1,Personnel Updates,Board Retreat,Zehnder Power Plant, Attorney's Report and AlasConnect Report),the immediate knowledge of which could have an adverse impact to the Association. At 9:00 p.m.Chairman Nordmark extended the meeting for an additional 45 minutes. At 9:40 p.m.,without objection,the Board came out of Executive Session. ENVIRONMENTAL ACTION Mr.DeLong moved that should an environmental violation be filed against GVEA or any of its subsidiaries,the GVEA Board is to be notified immediately and the topic is to be added to the next Board meeting agenda.Mr.Gunderson seconded the motion;the motion passed. ADJOURNMENT At 9:44 p.m.,without objection,Chairman Nordmark declared the meeting adjourned. Bill Nordmark,Chairman er Sloan,Secretary uann Berkley,Putcbe g Secretary ARARA Operating Procedures Manual 3.2 MEETING MINUTES What to Include:Robert's Rules of Order,a manual for running nonprofit organizations, explains that minutes are a record of what was done at the meeting,not what was said.At a minimum,minutes should include: 1.Name and kind of meeting.Is it a regular board meeting,an annual meeting,a meeting of the housing committee or a special meeting.If it is a special meeting,attach a copy of the meeting notice given to members. 2.Date,place,and time that the meeting began and ended. 3.Names of the chair and secretary or their substitutes. 4.Names of voting members attending and whether a quorum was present.You may circulate a sign-in sheet and attach it to the minutes. 5.Names of guests and their subject matter. 6.Whether minutes from the previous meeting were approved or corrected. 7.Motions made.You must record: *the exact wording of the motion *who made the motion *the result of the vote 8.|Reports.Record the name of the report,the name of the member presenting it,and any action taken on the report.If the report was in writing,attach it,or tell where it may be found.An oral report may be summarized briefly. 9.Other actions,assignments and deadlines,resolutions,and recommendations can be briefly recorded. 10.Secretary's signature once the minutes have been approved. Summarizing Discussions Some boards may opt to go beyond the basics and include additional items.For example, a summary of a discussion can give a more complete picture of the meeting.This can be helpful to members who could not attend the meeting and to those looking back at the historical record of the organization.Summaries,if included in the minutes,should be balanced and include major opposing viewpoints,even if they are not adopted. What to Leave Out The minutes are a factual record of business.Do not include: *Opinions or judgments:Leave out statements like "a well done report"or "a heated discussion." *Criticism or accolades:Criticism of members,good or bad,should not be included unless it takes the form of an official motion.Thanks or expressions of appreciation should only be included if there was a clear consensus of meeting participants.(For example,by applause.) *Discussion:If the organization has opted to include discussion summaries,do not personalize it by recording the views of individuals. *Extended rehashing of reports:Just hit the highlights or key facts,particularly if a written report is attached. June 2007 Page 3.2-1 Indefinitely.\f adopted by a two-thirds vote,this motion will cause an immediate vote on the motion to Postpone Indefinitely without further debate.[RONR (10th ed.),p.189-201.] Question 14: How can |get an item on the agenda for a meeting? Answer: For a proposed agenda to become the official agenda for a meeting,it must be adopted by the assembly at the outset of the meeting.At the time that an agenda is presented for adoption,it is in order for any member to move to amend the proposed agenda by adding any item which the member desires to add,or by proposing any other change. It is wrong to assume,as many do,that the president "sets the agenda.”It is common for the president to prepare a proposed agenda,but that becomes binding only if it is adopted by the full assembly,perhaps after amendments as just described.[RONR (10th ed.),p.363,I. 8-20;see also p.16 of RONR In Brief.] Question 15: Isn't it necessary to summarize matters discussed at a meeting in the minutes of that meeting in order for the minutes to be complete? Answer: Not only is it not necessary to summarize matters discussed at a meeting in the minutes of that meeting,it is improper to do so.Minutes are a record of what was done at a meeting, not a record of what was said.[RONR (10th ed.),p.451,|.25-28;see also p.146 of RONR In Brief. Question 16: lf minutes of a previous meeting are corrected,are the corrections entered in the minutes of the meeting at which the corrections were made? Answer: If corrections to minutes are made at the time when those minutes are originally submitted for approval,such corrections are made in the text of the minutes being approved.The minutes of the meeting at which the corrections are made should merely indicate that the minutes were approved "as corrected." If it becomes necessary to correct minutes after they have initially been approved,such correction can be made by means of the motion to Amend Something Previously Adopted. In this event,since the motion to Amend Something Previously Adopted is a main motion, the exact wording of that motion,whether adopted or rejected,should be entered in the minutes of the meeting at which it was considered.[RONR (10th ed.),p.452,1.12-15;p. 458,|.10-16;see also p.151 of RONR In Brief. Question 17: Can votes be taken in an executive session? Answer: Yes,votes can be taken in executive session.Proceedings in an executive session are secret,but are not restricted in any other way.[RONR (10th ed.),p.92-93.] 6 http://www.robertsrules.com/faq.html Robert's Rules of Order Online -Officers and the Minutes Page 4 of 6 The secretary should,previous to each meeting,for the use of the chairman,make out an order of business [65],showing in their exact order what is necessarily to come before the assembly.He should also have,at each meeting,a list of all standing committees,and such special committees as are in existence at the time,as well as the by-laws of the organization and its minutes.His desk should be near that of the chairman,and in the absence of the chairman (if there is no vice president present),when the hour for opening the session arrives,it is his duty to call the meeting to order,and to preside until the election of a chairman pro tem.,which should take place immediately.He should keep a record of the proceedings,stating what was done and not what was said, unless it is to be published,and never making criticisms,favorable or otherwise,on anything said or done.This record,usually called the minutes,is kept as explained in the next section.When a committee is appointed,the secretary should hand the names of the committee,and all papers referred to it,to the chairman of the committee,or some other of its members.He should indorse on the reports of committees the date of their reception,and what further action was taken upon them,and preserve them among the records,for which he is responsible.It is not necessary to vote that a report be "placed on file,"as that should be done without a vote, except in organizations that habitually keep no records except their minutes and papers ordered on file. 60.The Minutes.The record of the proceedings of a deliberative assembly is usually called the Minutes,or the Record,or the Journal.The essentials of the record are as follows:(a)the kind of meeting,"regular"(or stated) or "special,”or "adjourned regular”or "adjourned special";(b)name of the assembly;(c)date of meeting and place,when it is not always the same;(d)the fact of the presence of the regular chairman and secretary,or in their absence the names of their substitutes,(e)whether the minutes of the previous meeting were approved,or their reading dispensed with,the dates of the meetings being given when it is customary to occasionally transact business at other than the regular business meetings;(f)all the main motions (except such as were withdrawn) and points of order and appeals,whether sustained or lost,and all other motions that were not lost or withdrawn;(g)and usually the hours of meeting and adjournment,when the meeting is solely for business. Generally the name is recorded of the member who introduced a main motion,but not of the seconder. In some societies the minutes are signed by the president in addition to the secretary,and when published they should always be signed by both officers.If minutes are not habitually approved at the next meeting,then there should be written at the end of the minutes the word "Approved"and the date of the approval,which should be signed by the secretary.They should be entered in good black ink in a wellbound record-book.* The Form of the Minutes may be as follows: At a regular meeting of the M.L.Society,held in their hall,on Thursday evening,March 19,1914,the president in the chair,and Mr.N acting as secretary,the minutes of the previous meeting were read and approved.The Committee on Applications reported the names of Messrs.C and D as applicants for membership,and on motion of Mr.F they were admitted as members.The committee on ...........-reported through Mr.G a series of resolutions,which were thoroughly discussed and amended,and finally adopted,as follows: Resolved,That......50.s2se0:onvasooeszeeseso0es On motion of Mr.L the society adjourned at 10 P.M. In keeping the minutes,much depends upon the kind of meeting,and whether the minutes are to be published. In the meetings of ordinary societies and of boards of managers and trustees,there is no object in reporting the debates;the duty of the secretary,in such cases,is mainly to record what is "done"by the assembly,and not what is said by the members.He should enter the essentials of a record,as previously stated,and when a count has been ordered or where the vote is by ballot,he should enter the number of votes on each side;and when the voting is by yeas and nays he should enter a list of the names of those voting on each side.The proceedings of the committee of the whole.or while acting as if in committee of the whole,should not be entered in the minutes,but the report of the committee should be entered.When a question is considered informally,the proceedings should be kept as usual,as the only informality is in the debate.If a report containing resolutions has been agreed to,the resolutions should be entered in full as finally adopted by the assembly,thus:"The committee on .....submitted a report with a series of resolutions which,after discussion and amendment,were adopted as follows:"then should be entered the resolutions as adopted.Where the proceedings are published, the method shown further on should be followed.If the report is of great importance the assembly should order it "to be entered on the minutes,"in which case the secretary copies it in full upon the record. Where the regular meetings are held weekly,monthly,or quarterly,the minutes are read at the opening of each day's meeting,and,after correction.should be approved.Where the meetings are held several days in succession with recesses during the day,the minutes are read at the opening of business each day.If the next meeting of the organization will not be held for a long period,as six months or a year.the minutes that have not been read previously should be read and approved before final adjournment.If this is impracticable,then the executive committee.or a special committee,should be authorized to correct and approve them.In this case the record should be signed as usual,and after the signatures the word "Approved,"with the date and the signature of the chairman of the committee authorized to approve them.At the next meeting,six months later,they need http://www.rulesonline.com/rror-10.htm 6/27/2014 Robert's Rules of Order Online -Officers and the Minutes Page 3 of 6 When a motion is made,do not recognize any member or allow any one to speak until the motion is seconded and you have stated the question;or,in case of there being no second and no response to your call for a second, until you have announced that fact;except in case of a main motion before it is seconded or stated some one rises and says he rises to move a reconsideration,or to call up the motion to reconsider,or to move to take a question from the table.In any of these cases you should recognize the interrupting member as entitled to the floor [3].If you have made a mistake and assigned the floor to the wrong person,or recognized a motion that was not in order,correct the error as soon as your attention is called to it,So,when a vote is taken,announce the result and also what question,if any,is then pending,before recognizing any member that addresses the chair.Never wait for mere routine motions to be seconded,when you know no one objects to them.[See 8.] If a member ignorantly makes an improper motion,do not rule it out of order,but courteously suggest the proper one.If it is moved "to lay the question on the table until 3 P.M.,"as the motion is improper,ask if the intention is "to postpone the question to 3 P.M.;"if the answer is yes,then state that the question is on the postponement to that time.If it is moved simply "to postpone the question,"without stating the time,do not rule it out of order,but ask the mover if he wishes "to postpone the question indefinitely”(which kills it),or "to lay it on the table"(which enables it to be taken up at any other time);then state the question in accordance with the motion he intended to make.So,if after a report has been presented and read,a member moves that "it be received,"ask him if he means to move "its adoption"(or "acceptance,"which is the same thing),as the report has been already received.No vote should be taken on receiving a report,which merely brings it before the assembly,and allows it to be read,unless some one objects to its reception. The chairman of a committee usually has the most to say in reference to questions before the committee;but the chairman of an ordinary deliberative assembly,especially a large one,should,of all the members,have the least to say upon the merits of pending questions. Never interrupt members while speaking,simply because you know more about the matter than they do;never get excited;never be unjust to the most troublesome member,or take advantage of his ignorance of parliamentary law,even though a temporary gocd is accomplished thereby. Know all about parliamentary law,but do not try to show off your knowledge.Never be technical,or more strict than is absolutely necessary for the good of the meeting.Use your judgment;the assembly may be of such a nature through its ignorance of parliamentary usages and peaceable disposition,that a strict enforcement of the rules,instead of assisting,would greatly hinder business;but in large assemblies,where there is much work to be done,and especially where there is liability to trouble,the only safe course is to require a strict observance of the rules. 1."Though the Speaker (Chairman)may of right speak to matters of order and be first heard,he is restrained from speaking on any other subject except where the House have occasion for facts within his knowledge;then he may,with their leave,state the matter of fact."Defferson's Manual,sec.XVII.] "It is a general rule in all deliberative assemblies,that the presiding officer shall not participate in the debate or other proceedings,in any other capacity than as such officer,He is only allowed,therefore,to state matters of fact within his knowledge;to inform the assembly on points of order or the course of proceeding when called upon for that purpose,or when he finds it necessary to do so;and, on appeals from his decision on questions of order,to address the assembly in debate,[Cushing's Manual,§202.} 59.Secretary,or Clerk.The recording officer is variously called Clerk,or Secretary,or Recording Secretary (where there is aiso a Corresponding Secretary),or Recorder,or Scribe,etc.The secretary is the recording officer of the assembly and the custodian of its records except such as are specifically assigned to others,as the treasurer's books.These records are open,however,to inspection by any member at reasonable times,and where a committee needs any records of a society for the proper performance of its duties,they should be turned over to its chairman.The same principle applies in boards and committees,their records being accessible to members of the board or committee,as the case may be,but to no others. In addition to keeping the records of the society and the minutes of the meetings,it is the duty of the secretary to keep a register,or roli,of the members and to call the roll when required;to notify officers,committees,and delegates of their appointment,and to furnish committees with all papers referred to them,and delegates with credentiais;and to sign with the president all orders on the treasurer authorized by the society,unless otherwise specified in the by-laws.He should also keep one book in which the constitution,by-laws,rules of order,and standing rules should all be written,leaving every other page blank;and whenever an amendment is made to any of them,in addition to being recorded in the minutes it should be immediately entered on the page opposite to the article amended,with a reference,in red ink,to the date and page of the minutes where it is recorded. In addition to the above duties,when there is only one secretary,it is his duty to send out proper notices of all called meetings,and of other meetings when necessary,and to conduct the correspondence of the society, except as otherwise provided.Where there is a Corresponding Secretary these duties devolve on him,as well as such others as are prescribed by the by-laws.The by-laws should always clearly define the additional duties of the corresponding secretary if any are to be imposed on him.When the word "secretary”is used it always refers to the recording secretary if there is more than one. httn://www.rulesonline.com/rror-10.htm 6/27/2014 Robert's Rules of Order Online -Officers and the Minutes Page 5 of 6 not be read,unless it is desired for information as it is too late to correct them intelligently.When the reading of the minutes is dispensed with they can afterwards be taken up at any time when nothing is pending.If not taken up previously,they come before the assembly at the next meeting before the reading of the later minutes.With this exception the motion to dispense with reading the minutes is practically identical with the motion to lay the minutes on the table,being undebatable and requiring only a majority vote.The minutes of a secret meeting,as for the trial of a member,should not be read at a meeting that is open to the public,if the record contains any of the details of the trial that should not be made public. Minutes to be Published.When the minutes are to be published.in addition to the strict record of what is done, as heretofore described.they should contain a list of the speakers on each side of every question,with an abstract of all addresses,if not the addresses in full,when written copies are furnished.In this case the secretary should have an assistant.With some annual conventions it is desired to publish the proceedings in full.In such cases it is necessary to employ a stenographer as assistant to the secretary.Reports of committees should be printed exactly as submitted,the minutes showing what action was taken by the assembly in regard to them;or, they may be printed with all additions in italics and parts struck out enclosed in brackets in which case a note to that effect should precede the report or resolutions.In this way the reader can see exactly what the committee reported and also exactly what the assembly adopted or endorsed. 1,In many organizations it is preferable for the secretary to keep his original pencil notes in a pocket memorandum book which he Carries to every meeting,and these original notes,as corrected,are approved and then copied into the permanent records.This plan usually results in neater records,but the original notes should be kept until they are carefully compared with the permanent records.In such case it is better to have the minutes signed by both president and secretary as a guarantee against errors in copying. 61.The Executive Secretary is usually a salaried officer paid to give up all his time to the work as executive officer,or general manager,of an organization under a board of managers and an executive committee [50].In some organizations this officer is called Corresponding Secretary,but the title of corresponding secretary does not carry with it any duty except that of conducting the correspondence of the society as explained in 59:3, unless it is prescribed by the by-laws.The office of the executive secretary is usually the only office of the organization,and there the Executive Committee meets and transacts its business.The board of managers in such cases is usually large and so scattered as never to have regular meetings oftener than quarterly.When the organization is a national one it usually meets just before the annual convention,when it hears the annual report, Prepared by the executive secretary and previously adopted by the executive committee,and acts upon it.The new board meets immediately after the convention,and organizes,elects an executive committee and an executive secretary,when so authorized by the by-laws,and decides upon the general policy for the year,leaving the details to the executive committee and the executive secretary.The board rarely meets oftener than once or twice in addition to the meetings in connection with the annual meeting,special meetings,however,being called, when required,as provided by its by-laws.In some organizations the executive secretary is elected by the convention.He is usually ex-officio secretary of the executive committee.The members of the executive committee giving their time gratuitously,it is the duty of the executive secretary to prepare for the committee all business that has not been assigned to others,and to see that ail its instructions are carried out.He is expected to recommend plans of work and conduct the business generally,under the executive committee,and prepare the annual report,which,after being adopted by the executive committee,should be adopted by the board, whose report it is,and then be submitted to the convention. 62.Treasurer.The duties of this officer vary in different societies.In probably the majority of cases he acts as a banker,merely holding the funds deposited with him and paying them out on the order of the society signed by the president and the secretary.He is always required to make an annual report,and in many societies he also makes a quarterly report which may be in the form given below.If the society has auditors the report should be handed to them,with the vouchers,in time to be audited before the meeting.The auditors having certified to its correctness,submit their report,and the chair puts the question on adopting it,which has the effect of approving the treasurer's report,and relieving him from responsibility in case of loss of vouchers,except in case of fraud.If there are no auditors the report when made should be referred to an auditing committee,who should report on it later. It should always be remembered that the financial report is made for the information of members.The details of dates and separate payments for the same object are a hindrance to its being understood,and are useless,as it is the duty of the auditing committee to examine into details and see if the report is correct.The best form for these financial reports depends upon the kind of society,and is best determined by examining those made in similar societies.The following brief report is in a form adapted to many societies where the financial work is a very subordinate part of their work: REPORT OF THE TREASURER OF THE M.L.SOCIETY FOR THE QUARTER ENDING MARCH 31,1914. Receipts. httn://www miesanline cam/rrar-10 htm 6/27/2014 KODCITS Kules OF Vraer Uniine -UITicers and the Minutes Page 6 of 0 Balance on hand January 1,1914....$25.75 Initiation fees .....ceeeeeee §5UL00 Members!GuUeS oi.cece eee ee eenee 150.00 FUMES fee ccc cece cee eee etree ates 10.50 210.50 oe)ot $236.25 Disbursements, Rent Of Hall.cs.ese ec eee e ewe eee $80.00 Blectric Lights ....-..cs ec ee esse wees 22.00 Stationery and Printing........--2000-15.00 Repair of Furmituré.......c0seeecoves 10.00 Tanitor cece cere cece eee e ee nec ener nee 60.00 $187.00 Balance on hand March 31,1914.....49.25 TOCAL cece cee nee re teeters 236.25 Soeccseee Miseeecee ' Treasurer Secs ecace Lee.ee eae }Auditing Committee. Table of Contents |Previous Article |Next Article RulesOnline.com Meetings run like a well ced machinel ©2013 Robert's Rules Online:RulesOnline.com Template design by Andreas Viklund | http://www.rulesonline.com/rror-10.htm 6/27/2014 Robert's Rules of Order Online -Officers and the Minutes Page 2 of 6 If it is necessary for the chairman to vacate the chair the first Vice President,if there is one,should take the chair,and in his absence the next one in order should take it.If there is no vice president in the hall,then the chairman may,if it is necessary to vacate the chair,appoint a chairman pro tem.,but the first adjournment puts an end to the appointment,which the assembly can terminate before,if it pleases,by electing another chairman. But the regular chairman,knowing that he will be absent from a future meeting,cannot authorize another member to act in his place at such meeting;the secretary,or,in his absence,some other member should in such case call the meeting to order,and a chairman pro tem.be elected who would hold office during that session, unless such office is terminated by the entrance of the president or a vice president,or by the election of another chairman pro tem.,which may be done by a majority vote. The chairman sometimes calls a member to the chair and takes part in the debate.This should rarely be done, and nothing can justify it in a case where much feeling is shown and there is a liability to difficulty in preserving order.If the chairman has even the appearance of being a partisan,he loses much of his ability to control those who are on the opposite side of the question.There is nothing to justify the unfortunate habit some chairmen have of constantly speaking on questions before the assembly,even interrupting the member who has the floor. One who expects to take an active part in debate should never accept the chair,or at least should not resume the chair,after having made his speech,until after the pending question is disposed of.*The presiding officer of a large assembly should never be chosen for any reason except his ability to preside. The chairman should not only be familiar with parliamentary usage,and set the example of strict conformity thereto,but he should be a man of executive ability,capable of controlling men.He should set an example of courtesy,and should never forget that to control others it is necessary to control one's self.A nervous,excited chairman can scarcely fail to cause trouble in a meeting.No rules will take the place of tact and common sense on the part of the chairman.While usually he need not wait for motions of routine,or for a motion to be seconded when he knows it is favored by others,yet if this is objected to,it is safer instantly to require the forms of parliamentary law to be observed.By general consent many things can be done that will save much time [see 48],but where the assembly is very large,or is divided and contains members who are habitually raising points of order,the most expeditious and safe course is to enforce strictly all the rules and forms of parliamentary law. He should be specially careful after every motion is made and every vote is taken to announce the next business in order,Whenever an improper motion is made,instead of simply ruling it out of order,it is well for the chairman to suggest how the desired object can be accomplished.[See "Hints to Inexperienced Chairman" below.) The by-laws sometimes state that the president shall appoint all committees.In such case the assembly may authorize committees,but cannot appoint or nominate them.The president,however,cannot appoint any committees except those authorized by the by-laws or by a vote of the assembly.Sometimes the by-laws make the president ex-officio a member of every committee.Where this is done he has the rights of other members of the committees but not the obligation to attend every committee meeting.[See 51.] A chairman will often find himself perplexed with the difficulties attending his position,and in such cases he will do well to remember that parliamentary law was made for deliberative assemblies,and not the assemblies for parliamentary law.This is well expressed by a distinguished English writer on parliamentary law,thus:"7he great purpose of all rules and forms is to subserve the will of the assembly rather than to restrain it;to facilitate,and not to obstruct,the expression of their deliberative sense." Additional Duties of the President ofa Society,and the Vice Presidents.In addition to his duties as presiding officer,in many societies the president has duties as an administrative or executive officer.Where this is desired, the by-laws should clearly set forth these duties,as they are outside of his duties as presiding officer of the assembly,and do not come within the scope of parliamentary law. The same is true of vice presidents.Sometimes they have charge of different departments of work and they should be chosen with those duties in view as prescribed by the by-laws.It must not be forgotten that in the case of the absence of the president the first vice president must preside,and in case of the illness or resignation or death of the president that the first vice president becomes president for the unexpired term,unless the rules specify how vacancies shail be filled.In such case the second vice president becomes the first,and so on.It is a mistake to elect a vice president who is not competent to perform the duties of president. Hints to Inexperienced Chairmen.While in the chair,have beside you your Constitution,By-laws,and Rules of Order,which should be studied until you are perfectly familiar with them.You cannot tell the moment you may need this knowledge.If a member asks what motion to make in order to attain a certain object,you should be able to tell him at once.[10.]You should memorize the list of ordinary motions arranged in their order of precedence,and should be able to refer to the Table of Rules so quickly that there will be no delay in deciding all points contained in it.Become familiar with the first ten sections of these Rules;they are simple,and will enabie you more quickly to master parliamentary law.Read carefully sections 69-71,so as to become accustomed to the ordinary methods of conducting business in deliberative assemblies.Notice that there are different ways of doing the same thing,all of which are allowable. You should know all the business to come regularly before the meeting,and call for it in its regular order.Have with youa list of members of all committees,to guide you in nominating new committees. http://www.rulesonline.com/rror-10.htm 6/27/2014 Robert's Rules of Order Online -Officers and the Minutes Robert's Rules Online:RulesOnline.com Page 1 of 6 Robert's Rules of Order Revised,Fourth Edition,with Up-to-Date Annotations! GETTING STARTED: Table of Contents PrecedenceTableofRulesPreface/LewesIntroductionMRULESOF ORDER:_Assemblies-1 i Classification-II Privileged-IIL Incidental-IV'Subsidiary-V Committees/Boards-IX'\officers/Minutes-X | Miscellaneous-x1 @ MEETING/ASSEMBLY: 'Orgs/Meetings-XII 'Site Map HOF INTEREST: Questions?RONR 1ith edition oe Parli Websites Pro Websites - 'www.ParliPro.org Art.X.The Officers and the Minutes. 58.Chairman or President 59.Secretary or Clerk 60.The Minutes 64.Executive Secretary 62.Treasurer 58.Chairman or President.The presiding officer,when no special title has been assigned him,is ordinarily called the Chairman,or the President,or,especially in religious assemblies,the Moderator.In organized societies the constitution always prescribes his title,that of President being most common.In debate he is referred to by his official title and is addressed by prefixing Mr.or Madam,as the case may be,to that title.In referring to himself he should never use the personal pronoun;he generally says,"the chair,"which means the presiding officer of the assembly,regardiess of whether his position is permanent or temporary.If his position is only temporary he is called the chairman. His duties are generally as follows:To open the session at the time at which the assembly is to meet,by taking the chair and calling the members to order;to announce the business before the assembly in the order in which it is to be acted upon [65];to recognize members entitled to the floor [3];to state [6]and to put to vote [9]all questions which are regularly moved,or necessarily arise in the course of the proceedings,and to announce the result of the vote;to protect the assembly from annoyance from evidently frivolous or dilatory motions by refusing to recognize them [40];to assist in the expediting of business in every way compatible with the rights of the members,as by allowing brief remarks when undebatable motions are pending,if he thinks it advisable;to restrain the members when engaged in debate,within the rules of order;to enforce on all occasions the observance of order and decorum among the members,deciding ail questions of order (subject to an appeal to the assembly by any two members)unless when in doubt he prefers to submit the question for the decision of the assembly [24];to inform the assembly,when necessary,or when referred to for the purpose,on a point of order or practice pertinent to pending business;to authenticate,by his signature,when necessary,all the acts, orders,and proceedings of the assembly declaring its will and in all things obeying its commands. In case of fire,riot,or very serious disorder,or other great emergency,the chair has the right and the duty to declare the assembly adjourned to some other time (and place if necessary),if it is impracticable to take a vote, or in his opinion,dangerous to delay for a vote. The chairman should rise to put a question to vote,except in very small assemblies,such as boards or committees,but may state it sitting;he should also rise fram his seat (without calling any one to the chair)when giving his reasons for his decision upon a point of order,or when speaking upon an appeal,which he can do in preference to other members.During debate he should be seated and pay attention to the speaker,who is required to address his remarks to the presiding officer.He should always refer to himself as "the chair,”thus, "The chair decides,”etc.,not "I decide,”etc.When a member has the floor,the chairman cannot interrupt him excepting as provided in 3,so long as he does not transgress any of the rules of the assembly. If a member of the assembly,he is entitled to vote when the vote is by ballot (but not after the tellers have commenced to count the ballots),and in aif other cases where the vote would change the result.Thus,in a case where a two-thirds vote is necessary,and his vote thrown with the minority would prevent the adoption of the question,he can cast his vote;so,also,he can vote with the minority when it will produce a tie vote and thus cause the motion to fail;but he cannot vote twice,first to make a tie,and then to give the casting vote. Whenever a motion is made referring to the chairman only,or which compliments or condemns him with others, it should be put to vote by the Vice President if in the room,or by the Secretary,or on their failure to do so,by the maker of the motion.The chair should not hesitate to put the question on a motion to appoint delegates or a committee on account of his being included. The chairman cannot close debate unless by order of the assembly,which requires a two-thirds vote;nor can he prevent the making of legitimate motions by hurrying through the proceedings.If members are reasonably prompt in exercising their right to speak or make motions,the chair cannot prevent their doing so.If he has hurriedly taken and announced a vote while a member is rising to address the chair,the vote is null and void, and the member must be recognized.On the other hand the chairman should not permit the object of a meeting to be defeated by a few factious persons using parliamentary forms with the evident object of obstructing business.In such a case he should refuse to entertain the dilatory or frivolous motion,and,if an appeal is taken, he should entertain it,and,if sustained by a large majority he may afterwards refuse to entertain even an appeal made by the faction when evidently made merely to obstruct business.But the chair should never adopt such a course merely to expedite business,when the opposition is not factious.It is only justifiable when it is perfectly clear that the opposition is trying to obstruct business.[See Dilatory Motions,40). htto://www.rulesonline.com/rror-10.htm at,Youedto OW For more information on how to use parliamentary procedure and for tools and tutorials that can be useful,go to www.parlipro.org . Books 'Search this site 'Home 6/27/2014 Intertie Management Committee Regular meeting MEETING MINUTES Monday,June 30,2014 Anchorage,Alaska 1.CALL TO ORDER Chair Brad Evans called the meeting of the Intertie Management Committee to order on June 30,2014 at 10:30 a.m.A quorum was established. 2.ROLL CALL FOR COMMITTEE MEMBERS Brad Evans Chugach Electric Association (CEA) Cory Borgeson Golden Valley Electric Association (GVEA) Joe Griffith Matanuska Electric Association (MEA) Jeff Warner Municipal Light &Power (ML&P) Gene Therriault Alaska Energy Authority (AEA) 3.PUBLIC ROLL CALL Burke Wick and Brian Hickey (CEA);Allen Gray,Dan Bishop,and Mike Wright (GVEA);Aung Thuya (ML&P);Kelli Veech,Katherine Beale,and Teri Webster (AEA). 4.AGENDA APPROVAL MOTION:Mr.Griffith made a motion to approve the agenda as presented.Motion seconded by Mr. Therriault.The motion was adopted without objection. 5.APPROVAL OF PRIOR MINUTES -March 11,2014 and May 8,2014 MOTION:Mr.Griffith made a motion to approve the prior minutes of March 11,2014 and May 8, 2014.Motion seconded by Mr.Therriault.The motion was approved unanimously. 6.PUBLIC COMMENTS There were no public comments. 7.NEW BUSINESS dof7A.Approval of FY15 Budget /AThecommitteemembersreviewedtheline items in the budget. MOTION:Mr.Therriault made a motion to amend the FY15 proposed budget as presented to the following:1)Allocate FERC 924 Property Insurance of $145,000 under MIRCR calculation;2)Reduce FERC 566 Intertie Ground Patrols from $40,000 to $25,000.The motion was seconded by Mr.Griffith.A vote was called and the motion passed unanimously. MOTION:Mr.Therriault made a motion to adopt the FY15 budget of $2,677,780 with the following stipulations:1)Provide greater level of detail for line items FERC 566 -Private Line Telephone Service for AKI SCADA of $110,000;FERC 566 SLMS -Support Contract/Battery Changeout of $60,000; FERC 920 --IMC Administrative Costs of $150,000;2)Direct budget subcommittee to revise budget presentation for improved legibility and comparability for Railbelt budget structure.The motion was seconded by Mr.Griffith.A vote was called and the motion passed unanimously. IMC Meeting Minutes-June 30,2014 Page 1 of 2 Amengéd and Restated Alaska Intertie Agreement that was passed in March.They will report back to the IMC their recommended changes. 7C.IMC /OC Subcommittee Members -Participation by non-IMC members Public participation and subcommittee meetings notices were discussed.The Chair assigned the Tariffs and Regulatory Affairs subcommittee to create a standard for all of the subcommittees to follow.ditt7D.Level of Detail on Meeting Minutes plumbers diderrtod Me Mesel ofaunenhTHeonenlens - an To slim down the meeting minutes,only a brief summary and the action items will be included in future meeting minutes.The audio recording is always available to listen to the full meeting. 7E.Operators Report -IOC 45 the The IOC Operator Report was given by Mr.Warner.pa IMC regarding Homer Electric Association notMr.Gibson gave an overview of the Memorandum to being in compliance with the spinning reserve requjréments contained in the Railbelt Standards.It was discussed to have the IMC submit to the RCA a Ktilemaking petition to have the Reliability Standards enforced to all utilities.The Chair assigned the 'Tariffs and Regulatory Affairs subcommittee to create a process on how a non-intertie member joins the pool and pays a fair share of the costs and to include it in the Rulemaking petition. 8.COMMITTEE ASSIGNMENTS Budget committee -Follow through on the motion made with the adoption of the budget. Tariffs and Regulatory Affairs -Create standards for all subcommittees;RCA Rulemaking petition. Operations,Maintenance and Scheduling -Ensure the definitions in the Second Amended and Restated Alaska Intertie Agreement are consistent with the index of definitions. 9.NEXT MEETING DATE Not determined. 10.ADJOURNMENT There being no further business of the IMC,the meeting adjourned at 1:00 p.m. Bradley Evans,Chairman Gene Therriault,Secretary To obtain an audio of the full meeting,contact Teri Webster (AEA)at 907-771-3074. IMC Meeting Minutes-June 30,2014 Page 2 of 2