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HomeMy WebLinkAboutIntertie Managment Commitee Meetings 08-16-2012 2(on)a Alaska Intertie Management Committee MEETING MINUTES Thursday,August 16,2012 Anchorage,Alaska 1.CALL TO ORDER/INTRODUCTIONS Vice Chairman Brad Evans called the meeting of the Alaska Intertie Management Committee to order on August 16,2012 at 9:07.A quorum was established. MOTION:Mr.Strandberg made a motion to approve the agenda.Motion seconded by Vice-Chair Posey.The motion was approved unanimously. Members present:Brad Evans (Chugach Electric);Jim Posey (AML&P);Jim Strandberg (AEA);Cory Borgeson (GVEA-phone);and Gary Kuhn (MEA). Public present in Anchorage:Sara Fisher-Goad,Gene Therriault,Kirk Warren,Kelli Veech;and May Clark (AEA);Louis Agi and Jeff Warner (AML&P);Brian Bjorkquist (AGO);Ashish Agrawal (Army);Burke Wick (Chugach Electric);Kirk Gibson (MR&G);Henri Dale (GVEA); and Ray Baker (Accu-Type Depositions). 2.PRIOR MINUTES -November 18,2011 MOTION:Mr.Strandberg made a motion to approve the prior minutes from November 18,2011.Motion seconded by Mr.Kuhn.The motion was approved unanimously. 3.ELECTION OF OFFICERS (Action Item) MOTION:Mr.Posey nominated Mr.Evans as Chairman.Nomination seconded by Mr. Kuhn.The nomination was approved by acclamation. MOTION:Mr.Kuhn nominated Mr.Posey as Vice-Chairman.Nomination seconded by Mr.Evans.The nomination was approved by acclamation. MOTION:Mr.Evans nominated AEA as the Secretary/Treasurer.Nomination seconded by Mr.Posey.The nomination was approved by acclamation. 4.2013 BUDGET RATIFICATION (Action Item) MOTION:Mr.Dale made a motion to adopt the attached budget.Motion seconded by Mr.Posey.The motion was approved unanimously. AIMC Draft Meeting Minutes-Aug 16 2012 Page 1 of 8 oe oO 5.RESOLUTION No.2012-01,Spinning Reserve (Action Item) MOTION:Mr.Dale made a motion to go over Resolution No.2012-01.Motion seconded by Mr.Posey. Mr.Strandberg stated AEA has reviewed the resolution,but respectfully requests additional time,perhaps 30 days,for further discussions and maybe a teleconference meeting.He stated at the present time,AEA doesn't know enough to support the resolution. MOTION:A motion was made to table Resolution No.2012-01 until the next regularly scheduled AIMC meeting,not to be less than 30 calendar days from today.Motion seconded.The motion was approved unanimously. 6.OTHER MATTERS 6A.Open Access Language Chair Evans said there is no action to be taken here.A small taskforce needs to be assigned to start drafting what will be contract language or amendments to the agreement of adopting rules on open access. Mr.Strandberg stated AEA is vitally interested in collaborating on the development of these rules.He wanted to talk about the makeup of the group.He suggested the group be made up of a combination of technical or market people with lawyers. Mr.Borgeson liked Mr.Strandberg's idea of having the technical people write the first draft before it gets to the attorneys.Chair Evans stated he would correspond with each of the Committee members for input on which members to include in the technical core group.After the technical core group assembles draft language,then they can get together with the legal group and finalize the draft. Vice-Chair Posey asked if there is some theme that AEA has that needs to be understood at the table before the technical team goes forward.Mr.Strandberg said AEA is a public corporation and they would like to start out with forming a set of rules allowing viable entities a reasonable access within the existing reliability and reserve capabilities of the system. Chair Evans cautioned that you could probably write the best open access language that is the most fair to everybody in the universe and it will still be subject to a lot of criticism that it was done to protect the utility interest.Chair Evans suggested having a taskforce of three people,so it will get done in short order. Mr.Strandberg stated AEA appreciated the attention the members are taking on this agreement matter.He said the due date is July 1,2013.Mr.Gibson said there is a request for public AIMC Draft Meeting Minutes-Aug 16 2012 Page 2 of 8 ed oo comment,no later than 18 months after the effective date of the agreement,which was November of 2011.That date is May of 2013. Chair Evans commented that whatever AIMC decides will more than likely be the precedent for all open access issues across the system,whether it involves the intertie or not.He stated everyone needs to be careful and review that internal to their organization and not let something be propagated that you disagree with. 6B.Non-IMC participant interconnected utility operations Chair Evans stated this will be an issue for everyone here,no later than the first quarter of 2013. There is a great sense of urgency for everyone in the room to diligently work this through to its logical conclusion.Chair Evans said utilities that aren't participants still operate under guidelines and operating practices we've been working under for the last 30 years,until we all agree that those can be changed on a non-discriminatory basis.Chair Evans said he doesn't see the logic in allowing large-scale utility operations to run counter to that. Vice-Chair Posey commented there are three former Commissioners in the room.He stated Alaska has always dealt with regulated assets and utilities by having a cost causer and a cost payer.Vice-Chair doesn't think that has to change. Chair Evans asked what the AIMC will do about the unit running in the system tomorrow that is not going to carry spinning reserve and is large enough to note on the system frequency monitoring. Mr.Dale responded to the extent that frequency changes,he will contribute to restore it.Chair Evans asked what Mr.Dale will do about having to tell his membership that they're spending money to spin units for the benefit of non-payers.Mr.Dale said he understood the concept and everybody has to participate.He agreed there are no free rides. Chair Evans asked the Committee if the formation of a formal reliability group should be included in this agreement to have recognized authority in the system.Chair Evans asked for everyone to decide if there is something that needs to be done outside of the Alaska Intertie Agreement regarding rules and obligations for operating within the system. Mr.Strandberg asked Mr.Dale if he was speaking previously about the AEEC certification proceeding.Mr.Dale answered the concern at the time was that AEEC is not signatory to Addendum A and that this mechanism could be moving generators out of Homer/AEG&T into this other group.Mr.Dale believed they would follow the rules of Addendum A. Mr.Bjorkquist commented part of the history was MEA's position that they weren't subject to the reliability standards or Addendum A because it was AEG&T.That was part of the context as to why that clarification was required when AEEC was included. Mr.Strandberg asked Chair Evans what the best approach would be on system-wide reliability. Chair Evans responded the ideal approach would be to have a body that was recognized as the AIMC Draft Meeting Minutes-Aug 16 2012 Page 3 of 8 (oad fo authority in the reliability standards of a system by governing bodies,regulatory bodies,the state of Alaska and the law.Chair Evans suggested adopting what has been done in the Lower 48 and molding it to Alaska's needs.He said the actual rules and operating guidelines we presently have are all from NERC,but the spinning reserve,the standby reserve and the planning reserves are completely different from the Lower 48 and have been adjusted to appropriately reflect Alaska's needs. Chair Evans stated his intent is to form another taskforce.He stated this will be more of a legal task because he is asking for the review of the contracts the way they were and the way they changed.Questions for the taskforce would include;what are the trickle-down obligations?Are you a signatory to the intertie agreement?Do we need a railbelt systems coordinating council? Does it have to be a corporation?Can it be a corporation?He said the taskforce would also provide a recommendation on the reliability group structure. Mr.Strandberg asked Chair Evans what relationship he had with Mr.Dale's current committee and the work product from that committee and this new taskforce.Chair Evans said Mr.Dale's committee wasn't working on the legal aspects,and they were looking at the mechanics of the rules and what would be a rational change to those rules.Chair Evans stated the taskforce is being challenged in at least two other ways.He agreed that eventually it all has to come together and the Council would more than likely just adopt what we've done. Mr.Dale commented it is not so much the reliability rules,but rather the reliability organization structure.Chair Evans agreed and said if there was a council,not unlike the Intertie Management Committee,then they would make these assignments to subcommittees just like NERC does. Vice-Chair Posey suggested filing with the RCA what we know in our history,some explanation of our history,letting the RCA know where we're at today and where we are going.Chair Evans agreed and said it would be nice to be able to tell the RCA we're forming a reliability council. Vice-Chair Posey stated any other way of trying to do it legislatively would take one to two years to complete and we don't have that kind of time,given the risk faced by not having this resolved or a path for how to resolve it. Mr.Strandberg asked Mr.Dale if he had all of the railbelt utilities,including Doyon,on his RRC.Mr.Dale stated Doyon hasn't attended in quite some time.He said the Army does attend regularly and the City of Seward hasn't attended in quite a while.Mr.Strandberg asked Mr. Dale if his intention was to reach out to all potential known entities that might interconnect with those reliability rules.Mr.Dale said they haven't reached out to people who might interconnect. Mr.Strandberg asked Mr.Dale if there has been unanimous agreement in the standards from all of the participating attendees.Mr.Dale responded they have come to a unanimous agreement on the language,but MLP has not signed,nor has Chugach.Mr.Dale believes that both Seward and Golden Valley have signed. Mr.Strandberg commented that there has been some good work done and that material could be developed into the taskforce initiative the Chair was suggesting.Chair Evans said clearly their work is foundational to the organization and structure that is being contemplated.Chair Evans AIMC Draft Meeting Minutes-Aug 16 2012 Page 4 of 8 road gO stated he would like to see the reliability group operate without a budget at first and not start out administratively heavy.Chair Evans stated a group of legal people need to evaluate what the appropriate structure is for an organization such as this.It doesn't have to operate differently than the IMC.He suggested getting the structure first and worry about the budget when the need arises. Chair Evans asked the group to comment about the process an entity would follow to become a participating member of the group.Mr.Dale commented they would start out as an ad-hoc group and anybody is welcome to participate and now that we are under the ARCTEC,there would be some question as to who can participate.Chair Evans said he was interested in making the membership appropriate for what its mission is. Mr.Agi suggested using the same membership qualifications that the IMC uses.Mr.Dale stated it is important to have buy-in from all of the major players and the agreement has to be binding on everybody that is interconnected. Mr.Kuhn suggested utilizing the technical resources available so that it doesn't become overly complicated and difficult to understand when an enforcement action is needed.Chair Evans responded he would like to see the rules the same as they have been for the last 30 years. Mr.Agi suggested petitioning the RCA for an initiation of rule making and establishing a council for electrical utilities that the RRC,and maybe some other participants among the railbelt who are certificated interconnected utilities,have as a condition of their certification that they will now participate in this council under set guidelines. Chair Evans said it is critical that whatever is filed with the RCA says we are firmly behind the way we have operated the system,until it is clear to us that there needs to be a specific change. Mr.Strandberg commented in previous discussions between AEA and the utilities,they have always sought to create a voluntary unanimous package that would be submitted to the RCA as an informational filing.He stated the group should consider very carefully the suggestion to petition for a regulatory proceeding.Mr.Strandberg requested that open access terms are included as the network evolves,but with the caveat that anyone who participates agrees to have adequate reserves and to follow reasonable reliability rules in the network. Mr.Kuhn said it is always good to have a proxy put on the table from the utilities,rather than having the governing entity come up with something first. Chair Evans asked the Committee to send him an email regarding who should be on this taskforce.Chair Evans suggested the group consists of attorneys,prior commissioners and the technical group. Mr.Strandberg stated AEA is gratified about having these conversations at this forum for the Alaska Intertie.He stated his concern that as the discussions are carried on,the other key known utilities wouldn't be a part of those discussions.Mr.Strandberg asked Chair Evans what his thought is on the effectiveness of this without the other utilities here. AIMC Draft Meeting Minutes-Aug 16 2012 Page 5 of 8 o Fre Chair Evans said it is a public meeting.He said they should have some sort of notification, perhaps a letter that frames this situation and the obligations of utility operations in an interconnected system.Chair Evans said they could be invited by letter to participate in the IMC and participate in the discussion. Mr.Strandberg requested Mr.Bjorkquist's legal opinion.Mr.Bjorkquist stated the IMC is focused on the Alaska Intertie and so in expanding these procedures to the entire railbelt,it becomes broader.Mr.Bjorkquist stated the dilemma is figuring out how to get something that is enforceable because there are two different issues;the railbelt and the intertie.He stated there have been some conversations over the last two years about that and no good answer was ever developed. RECESS:10:31 am. The IMC reconvened its regular meeting at 10:47 am. 6C.Next meeting Chair Evans suggested continuing the discussion on the Railbelt Interconnecting Transmission Corridor,RITC,system and the transfer of benefits from state assets to all of the participating members.He said the discussion should include the eventual deliverability points for other state assets that may be developed in the near future and that would define a common corridor for open access.Chair Evans said he endorses the AIMC looking at the configuration in the railbelt that ties common assets together,which allows people to conduct business utilizing a unified rate.He stated it is a very complex situation,especially when the budget is reviewed.Chair Evans stated this evolves the system,shows maturity of the group and is necessary to go to the next 50 years of operation in this system. Mr.Strandberg said AEA is vitally interested in establishing a strong backbone between Brad Lake and the Alaska Intertie.He said AEA strongly endorses these business structure discussions that would simplify the commercial environment to move power on a backbone. Mr.Gibson asked Chair Evans if Ship Creek uses ML&P to get to the corridor,and there is a gold mine on the east side of MEA,or the military on the other side of Golden Valley,how do you expect either Golden Valley or MEA in that situation to charge?Would it be part of the corridor rate when it goes through their system or do they stop and then there is a distribution rate? Chair Evans stated his opinion is there are two answers.One is if the gold mine is connected to the corridor and it happens to be a corridor that is in their service territory,there wouldn't be a distribution charge.That is the idea of the common asset.On the first end of it,if they chose not to connect to the corridor,but use the assets of ML&P to get to the corridor,then there should be a fee associated with that. AIMC Draft Meeting Minutes-Aug 16 2012 Page 6 of 8 oO oo Mr.Kuhn commented the corridor has to be identified and the assets have to be brought up to where the existing Brad can be gotten to the systems appropriately.He said this is going to change significantly and dramatically this fall,where some are not going to be able to get their shares of Brad if the state doesn't recognize that this is a game-changer. Mr.Strandberg said AEA sees the business structure as defining access,control and cost responsibility for the backbone.He stated AEA wants to look at the business structure,along with the technical aspects of the wires and towers,to have a simplified commercial structure so that open access contracts can be written efficiently and economically. Chair Evans commented the way the system works now really is an impediment to economic development.He stated there needs to be some exclusivity with the utility to make it work. Chair Evans stated the corridor needs to become more of a common asset for public good because the rate is lowered as more people use it. Mr.Dale commented our corridors are constrained and there is a limit to how much we want people to participate because they are constrained lines.Chair Evans agreed and said there has to be a preservation of utility interests the way they were and how that gets shepherded going forward.He stated that is a huge challenge,but said open access allows it to be used until the time it is constrained and then the utility companies have to pay for the upgrade. Mr.Strandberg stated one of the fundamentals of transmission planning is to provide adequate capacity so that we can have open access with people who are willing to bring their money and to agree to reserve limits. Vice-Chair Posey stated if you come to the table and you want to use an asset that is already fully subscribed,something has to give and is that money to the people who currently use it to buy a percentage or do you unconstrain it through other investment or does the state look at it as being economic development and they pay for the expansion?He said that one way or the other, money has to changed hands and it needs to be done and it needs to have a process. Mr.Dale stated the single rate works well for him because he is far away and buys from anybody he can.He asked if anyone in the middle is seeing this as distance sensitive or segment sensitive. Chair Evans said he needs to look at the model because we're all transmitting benefit up the line and it is coming apart and if individual tariffs are set,there is going to be litigation for a long time.He stated what is being set up is more robust to stand the test of time. Mr.Kuhn said the state hasn't given an opinion on whether a unified system with a managing entity could even be developed.Mr.Strandberg indicated those discussions are definitely on the table and he thinks it is too early to reach any conclusion,other than these issues are compelling and important and we have to start addressing them right away. Chair Evans asked Mr.Strandberg if this should be left on the IMC's agenda.Mr.Strandberg said he is pleased to participate in these discussions.Chair Evans asked the Committee if they feel the evaluation of how to unconstrain the system and developing the boundaries of a AIMC Draft Meeting Minutes-Aug 16 2012 Page 7 of 8 oo oo backbone should be the focus of this Committee or should the individual utilities be the ones who move it along or should it be the responsibility of ASCC. Mr.Strandberg said there is a process underway where he is meeting with the utilities and the transmission planning is under an extreme fast-track.He suggested continuing that process and he can report back and bring any issues to this group for discussion.Mr.Strandberg stated he will participate in whatever forum is convenient for the utilities.He stated his desire of having everybody at the table. The next meeting is scheduled for Thursday,September 13,2012 at 2:00 pm in the conference room on the third floor of the Frontier Building,3601 "C”Street in Anchorage. 7.ADJOURNMENT There being no further business of the AIMC,the meeting adjourned at 11:36 am. Gene Nheryault,Secretary AIMC Draft Meeting Minutes-Aug 16 2012 Page 8 of 8 ALEMC -9:6q Am Jim +SC om PG t/-30 31-6335 Cet so7y f A&A Sara.fusher-GoAD.-€xecutive DirectorGeneTRerriauttDeputyDirectorStitewide Theta,FolicaJimStrandeecc.Provect DVO WASCAKirkWarren;Pro)MSBretMamClark,cf Kecvtive AsstTim_strancl Bers. 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[ss Wit wf utils xn atl aaped S Bwe-LY we art ho Ste HD -fr Cmept 4 Ceti dpCantpprokibtSPRL Burl -iAAanNlea hen'feegmes Co BharranherjuceLoyoKappen /1D-Quetin eeto 72 Re BrovjKt bp Sine Aibe Buee spt sord deal wTLennenteSonGtive73oWkAate bwin Ww (ote @ medlr- Cue ae cll BenefitpwwiLutVentAyt-Telos Pash |#t cam,hdr ales huly ViseDisesene,Five Ve tort LUthe i"pru.-Soa.Ast ltusied -haf antfraBLAoSuea=raediba, Oo ss-CMcer bv/Chae --sSSHraCus[Mepote DS Swe-Cuclu£t-- Ait Melt RuoCousinYet,but ferbed Vht (Mike,_Loqet fo NSa yeeVlfot<Kb- Jlecd 7h set Soe mit d MoTWotdaGiteAyfrsshbos.AMC Ch Shapedof pss.lead Can wt Sous -Lictegute Vihear Qchio ti)Stic, fweé-(oat fur)pen he . QS Burs Stelio --y table use -Det mor Sku - Davo hu holere 0s arathr crop?LS Gob.how jt Wnts,ete.Sa Shiv UIs?Qctee2Lukg! )ss-frocos fp meet w/uhls:[uk foace +fapnt F Brire fssua A Fuc_Yn vise,het Rout Upls@ Prkhee. © Pre ae mechrg =LLet Pr,i rchikeASorCheFyShow"yO Ou fret,[vel feet Aigalar |-Qucbh-pyp-ret -(Noue ahi DSS-CiacdyZi Ads -Aewerer,Lt (4 Vie bo dogSbOQteZable, Thur > aN Peyt freotirs Bo fag Sm sept 13-4ZA.B00 -LOL Fr3dagae,opt Sa ieU ,Chietee ARAZ CEI:Follow bs5 AideGo42rdflorIeT,Gigntiev B idea"301 'C'st, -Shoks L Ad(auw I Boyer Re.lopeay -Lf:35 dy [Rue Det mt mat fp SeeCotowrtbreaceeeC4osfaastSDSlKatkavFochia, |O)Cowtder au-Ruofln-Gen bse m- Su fw ¢frvcrsbackTOTIVlc oo oo INTERTIE MANAGEMENT COMMITTEE RESOLUTION No.12-1 BACKGROUND:On November 18,2011,the Intertie Management Committee ("IMC”) approved Resolution 11-1 which resolved that all then-currently existing contracts, customs,and operating policies and procedures associated with the Alaska Intertie and recognized by the Alaska Energy Authority ("AEA”)and the Intertie Operating Committee ("IOC”)were to remain in effect and be maintained by the IMC until suchtimeastheIMCexpresslyaddressessuchcontracts,nd operating policies and WHEREAS,the interconnected Seti uities along!the Railbelt each own and operateelectricutilityfacilitiesandareengagedineebusinessofprovidingcapacity,energy sf pesere cCapacity And:'Operating Reserve Responsibility AgreementisaseparateanddependentcontractbyandbetweentheRailbeltelectricutilitiesthatwasmadeAddendmNo.1 to tttereiOperationoftheIntertie;ai WHEREAS,adherence to the principles and responsibilities of the Reserve Capacity And Operating Reserve Responsibility Agreement has improved the reliability of the all Railbelt electrical systems and allowed the utilities to engage in economically advantageous contracts and transactions for electrical capacity and energy;and WHEREAS,it is therefore desirable to continue to abide by these uniformly applicable standards and for the IMC to begin the development of methods and procedures for maintaining and enforcing such operating standards;and 4-IMC Resolution 12-1 oo oOo WHEREAS,pursuant to Section 3.1 of the Amended and Restated Alaska Intertie Agreement ("Intertie Agreement'),the Intertie Management Committee ("IMC”)has the delegated authority to adopt and implement operating policies and procedures, Reliability Standards for the Intertie,and enforcement processes,including sanctions and other remedies;and WHEREAS,coordination of all interconnected electric utilities and other bulk power generators and transmitters with the IMC is necessary for sustained and improved reliability of the Railbelt interconnected electrical system;and WHEREAS,the principles and responsibilities contained the Reserve Capacity AndOperatingReserveResponsibilityAgreementwere'in'etfect for the planning of all majorgenerationimprovementsnowunderdevelopmentinandongtheRailbelt;andaen,WHEREAS,the IMC believes that the pringipple and responsibilities containedin theReserveCapacityAndOperatingReservéRéesponsibilityAgreement-constitutefundamentallysoundengineeringoperating'prac tices foy"interconnected electric utilitiesalongtheAlaskaRailbelt;and Up yy J vy "yy WHEREAS,the IMC believes tha A saine ¢enginee fig,operating practices forinterconnectedelectricutilitiesthatale,contained |in the''Réserve Capacity AndOperatingReserveNepyAgreementwillieontinue'tOassure the reliability of the EES i Gee ke iineconomicallyadvarageouscontractsandnsactions for electrical capacity and%ee )energy;and LE bin be Danse py,WHEREAS ;the:(Meywish es tofoormally-Adopt and reaffirm the principles and"peel,respor{siilites contained in the Reserve>Capacity And Operating ReserveResponsibilityAgreementforusésthepoliciesandproceduresgoverning the reserveots,requirement fesponsibilityFeithhe |intertic BE IT RESOLVED THHAT All parties generating,delivering,or receiving bulk electrical capacity and energy across he Intertie shall be obligated to comply with the reserverequirementresponsibilitiescontainedintheReserveCapacityAndOperatingReserve Responsibility Agreement for all activities associated with or relating to the use of the Intertie ;and Further,let it be RESOLVED by the Intertie Management Committee that it expressly reaffirms the principles and responsibilities contained in the Reserve Agreement. The Secretary hereby certifies that this is a true and correct copy of Resolution No.12-1 and Resolution No.12-1 was approved by the IMC on August 16,2012. IMC Resolution 12-1 oOo By: IMC Secretary CEA, 3-IMC Resolution 12-1 Oo Alaska Intertie Management Committee Meeting Thursday,August 16,2012 Agenda Item:IV MOTION:Move that the Alaska Intertie Management Committee approve the fiscal year 2013 Operating and Maintenance budget as presented. Move: Second: Alaska Intertie FY13 Proposed Budget REVENUES GVEA ML&P CEA AEG&T MEA INTEREST TOTAL REVENUES EXPENSES FERC 562 -Station Operation Expenses GVEA -Substation Electricity Usage FERC 566 -Miscell.Tr ission E SCADA &Voice Circuits (SOA) Private Line Telephone Service for AKI SCADA (GVEA) ANC-FAI |OC Communication Link (CEA) Cell Phone Comm.Svc for Weather Monitoring (ATT) SLMS -Support Contract/Battery Changeout (08-007-EPSH) Intertie Ground Safety Patrol -(08-007-HDR) Railbelt Loan Shed Study _ Misc Studies as needed p FERC 567 -Transmission Expenses -Rents Rents -Alaska Railroad MEA-Talkeetna Storage FERC 570 -Maint of Station Equir it GVEA -Healy Cantwell,Goldhill GVEA -SCADA Maintenance Healy,Cantwell,Gold Hill GVEA -Healy SVC Maintenance (570270) -GVEA -Gold Hill SVC Maintenance (570240) GVEA-Cantwell Batteries -New ChargerGVEA-Cantwell Substation FenceGVEA-Standby Generator Set Standardization at CWS GVEA -Replace Protective Relay Schemes Healy CEA-Replace Protective Relay Schemes Dougias GVEA -Cantwell Repair 42 Switch GVEA -Mobile Substation Access GVEA -RPU replacement-Cantwell © GVEA -Recloser Control Replacement GVEA -Trar P ion Upgrad . GVEA -Dissolved Gas Monitoring Goid Hill &Healy CEA-AK Intertie YardCEA-Teeland Substation -MEA -Dougias Substation - FERC 571 -Maintenance of Overhead Lines GVEA -Northem Maintenance GVEA -Northern ROW Clearing GVEA-Landing Pads GVEA -Re-tevel Structures &Adjust Guys GVEA -Repair Tower 692 MEA-Special Patrols [Incl Foundation Inspections}MEA-Southem Maint (Incl Ground Inspect) MEA -Southern ROW Clearing Talkeetna North MEA-Contingency MEA -TWR 195 Repair Monitoring FERC 920 -AEA Administrative Costs Personal Services,Travel and Other Costs FERC 920 -IMC Administrative Costs IMC Administrative Costs FERC 924 -Property Insurance AK Intertie -Insurance Insurance Risk Assessment TOTAL EXPENSE SURPLUS (SHORTAGE) Oo Approved Proposed FY11 FY12 ACTUALS FY13 Actual Budget ©03/31/12 Budget 1,529,696 2,345,340 1,557 ,463.96 2,097,520 71,061 54,461 54,460.80 56,134 98,900 77,822 76,239.66 78,967 87,272 67,825 67,365.75 - -°646.76 44.679 940 -247.67 1,787,868 2,545,447]-1,756,424.60 2,277,300 8.126 4,000 §,311.34 6,000 8,126 4,000 6,311.34 6,000 234,209 234,000 234,209.32 75,000 4,550 55,092 21,647.36 55,000 °-9,860.91 ° 37,520 20,000 6,782.84 20,000 44,912 70,000 37,699.05 60,000 28,997 40,000 21,218.17 40,000 13,002 ° -2,000 -50,000 363,189 421,092 331,417.65 300,000 400 400 400.00 400 7,200 7,200 4,200.00 7,200 7,600 7,600 4,600.00 7,600 90,785,54,932 50,795.46 92,000 --7,000 , -oa 8,473 .18,074.44 ° "|3,829 we 2,571.45 ° -12,160 4,939.95 ° 13,213 300,000 259,102.19 > 10,000 e 35,000 '25,000 239,084 345,000 36,447.69 308,000 23 Ce -60,000 e °°250,000 =°45,000 >°>80,000 35,000 16,541 ° 117,752 - 16,439 52,000 22,410.33 52,000 131 5,000 9,770.13 5,000 606,248 786,092 404,111.64 987,000 191,745 150,580 80,109.38 152,000 52,926 200,000 2 200,000 °50,000 -50,000 -26,000 125,564.33 26,000 146 20,000 °20,000 -23,013 -20,000 46,983 112,414 13,838.75 70,000 337,281 174,648 2,638.68 20,000 °47,670 °40,000 :15,000 -- 629,081 819,326 222,181.04 698,000 71,259 70,000 29,494.75 §0,000 71,259 70,000 29,494.75 60,000 202,366 210,000 21,164.25 120,000 -50,000 -50,000 202,368 260,000 21,164.25 170,000 1,787,869 2,368,109 1,018,250.67 2,118,600 (0)177,338 738,173.93 158,700 ALASKA INTERTIE FISCAL YEAR 2013 ENERGY PROJECTION GVEA MEA CEA }ML&P TOTAL CAPACITY CASH FLOW MONTH MWH MWH MWH |MWH MWH GVEA _|CEA {MEA GVEA [|MEA _[ML&P {CEA TOTALS Jul 38,000 0 0 0 38,000 $174,800 $0 $0 $174,720 $43,299 $56,134 $75,286 $524,240 Aug 39,000 0 0 0 39,000 $179,400 $0 $0 $179,400 Sep 29,000 0 0 0 29,000 $133,400 $0 $0 $133,400 Oct 31,000 0 0 0 31,000 $142,600 $0 $0 $142,600 Nov 43,000 100}200 0 43,300 $197,800 $920 $460 $199,180 Dec 53,000 100]200 0 53,300 $243,800 $920 $460 $245,180 Jan 54,000 100}200 0 54,300 $248,400 $920 $460 $249,780 Feb 39,000 0}200 0 39,200 $179,400 $920 $0 $180,320 Mar 29,000 0 0 0 29,000 $133,400 $0 $0 $133,400 Apr 14,000 0 0 0 14,000 $64,400 $0 $0 $64,400 May 25,000 0 0 0 25,000 $115,000 $0 $0 $115,000 Jun 24,000 0 0 0 24,000 $110,400 $0 $0 $110,400 TOTAL 418,000 300 =.800 0 419,100 $1,922,800 $3,680 $1,380 $174,720 $43,299 $56,134 $75,286 $2,277,300 T.Energy:$1,927,860 T.Cap:$349,440 $2,277,300 TOTAL INTERTIE PROJECTED ENERGY USAGE 419,100 MWH TOTAL MWH REVENUE $2,277,300 Usage estimate reduced by 1/12 of Total for rate calculations 384,175 MWH O&M BUDGET $2,118,600 Section 8.2.2 MINIMUM USEAGE CONTRACT VALUE 204,984 MWH DIFFERENCE $158,700 UTILITY MEA ML&P CEA GVEA Usage Rate per KWH Capacity Rate $0.00460 $2.24 24.79% 32.13% 43.09% 100.00% FY 13 19.33 MW 25.06 MW 33.61 MW 78.00 MW 156.0 MINIMUM INTERTIE TRANSFER CAPABILITY RIGHTS AMENDED (MITCR)DETERMINATION FOR FISCAL YEAR 2013 Annual System Demand 09 10 10 11 41112 3 YR AVG. SOUTHERN UTILITY PARTICIPANTS(MW)DRAFT APPROVED APPROVED APPROVED APPROVEDAML&P 175.0 177.0 180.0 177.3 MW 4/24/2012 4/13/2012 4/15/2010 4/16/2009 4/17/2008 1/17/2008 CEA 233.3 242.2 237.8 237.8 MW UNITS FY13 FY12 FY11 FY10 FYO9 FY08 REV MEA 132.0 137.2 141.3 136.8 MW USAGE KWH 384,175,000 452,008,000 190,942,000 300,025,000 481,525,000 366,942,000 BUDGET $2,118,600 2,368,109 3,069,386 2,760,344 2,526,817 2,220,850 MITCR KW 156,000 140,000 140,000 140,000 140,000 140,000 TOTAL 551.9 MW ENERGY $.000/KWH $0.00460 $0.00437 $0.01342 $0.00768 $0.00438 $0.00505 NORTHERN UTILITY PARTICIPANTS (MW)Dec07-Jun08 Rate CAPACITY SKW $2.24 $2.79 $3.62 $3.25 $2.98 $2.62GVEA220.5 211.5 212.4 214.8 MW TOTAL 214.8 MW 32.50 MW of GVEA 10-11 peak are not-firm MITCR DETERMINATION FY 13 KWH CAPRATE CAP CHARGESo_oMEA24.79%19.33 MW 19,330 $2.24 43,299.20 ML&P 32.13%25.06 MW 25,060 $2.24 56,134.40 CEA 43.09%33.61 MW 33,610 $2.24 75,286.40 GVEA 100.00%78.00 MW 78,000 $2.24 174,720.00 156.00 MW 156,000 349,440.00 (A)See Section 8.2.5 AK Intertie Agreement (B)See Section 8.2.6 AK Intertie Agreement