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HomeMy WebLinkAboutMakushin Geothermal UniSea Fax Transmittals & Correspondence 1-92 - 3-92\).UniSea BECE!ve° BLASKA ENERGY AUTHORITY January 6,1992 Mr.Brent N.Petrie Manager,Agency Operations Alaska Energy Authority P.O.Box 190869 Anchorage,AK 99519-0869 Dear Mr.Petrie: As we have discussed over the telephone on numerous occasions,UniSea is unwilling to enter into an extended contract to purchase power from the Makushin Geothermal Project.We support the project and would very much like to see it completed,but the uncertainty of the fishery resource makes it too risky for UniSea to sign an extended contract. It appears that the 13¢/kWh rate for 1994 is reasonable.It also appears that 3800 kW demand is also reasonable.The part that concerns UniSea is the obligation to pay $3,653,000 at a minimum, even though we may not utilize 28,100,000 kWh.We do not know from year to year how much time the plant will be permitted to operate -- or even if we will operate.The recent announcement by NMFS to close even greater areas to commercial fishing adjacent to sea lion rookeries has a profound negative effect on our fish catching capability. If this project is to proceed,I believe the state of Alaska should underwrite the entire project.I don't believe any of us who meke our livelihood from the whims of Mother Nature and the environmental community can commit to purchase power for more than minimal periods of time. Sincerely yours, UNISEA,IN A J.Richard Pace President /pb cc Roe Sturgelewski,Unalaska Public Works Terry Shaff »¢UhiSea,Inc.¢V4 18400 Northeast 90th Street,P.O.Box 97019,Redmond,Washington 98073-9719 (206)881-8181 FAX (206)882-1660 Co 2 G3°10°703-"38:33 fy 00756014877 CAST- Processor Japanese Principals Dear In recent ef encouraging the development of Alaska's bottom fish continus se fight to create a clima establishing onshore processing capability-tresafromtke Sresources. To this end we must the rivate sector inPAiasleantherebycreatingjobs yours the state of Alaska has followed an aggressive policy DCED/INT'Ll.TRADE @ooa WG N Asst mg inciustry. that assiste sock!Developments on Unnalaska Island cooperation between have created the infrastructure (most recently the Strate and the bottom fishing industry. are a great example of |rhe result? the just ompleted nalaske We AIDEA dock)neccessary to make industry operations a --possible and profitabic.Togethor we have foughr in te nas to toProvidethemaximumaillocationtooffshorefisherlesrespurces onshore processors.Asa you know,together we recenty with the United States government in establishing the g¢ onshore allocation required to assure the future of operar yours.. "As important next step in the State's development progra Unalaska {a to provide a stable source of economic electr] for induatry and the residents of the island.The State of' invested rmore than six million dollara to date in explora the Makusikanddestgnandfeasibilitydeterminationsfor prevailed PRerOwus ions such as rma for cal energy Alaska has ery drilling aim TRANSMISSION REPORT THIS DOCUMENT WAS SENT *k COUNT **% (REDUCED SAMPLE ABOVE) # week SEND oko 3 NO REMOTE STATION I.D.START TIME DURATION #PAGES COMMENT 1 9075614577 3-19-82 16:00 1°55"3 TOTAL 0:01'°55"3 XEROX TELECOPIER 7020 avs -_-- D h Cc Post-It™brand fax transmittal memo 7671 |#of pages > To "Ron GArzin\ Co. Brews Tere a -_count Co.A A. 7 .Phone #<-_qa ED ANC --AG\=$246S6\-AStE **OL \-Sed Processor Japanese Principals Dear In recent years the state of Alaska has followed an aggressive policy of encouraging the development of Alaska's bottom fishing industry.To this end we must continue ro fight to create a climate that assists the private sector in establishing onshore processing capability;Asicarr these Vener Letherebycreatingjobsfromthe(resources.Developments on Unalaska Island are a great example of she result'of ehcooperationbetweentheStateandthebottomfishingindustry.Wehavecreatedtheinfrastructure(most recently the just completedAIDEAdock)necessary to make industry operations at Unalaskapossibleandprofitable.Together we have fought in oT arenas toprovidethemaximumallocationtooffshorefisheriesresourcestoonshoreprocessors.As you know,together we recently prevailed with the United States government in establishing the generous onshore allocation required to assure the future of operations such as yours. As important next step in the State's development program forUnalaskaistoprovideastablesourceofeconomicelectricalenergyforindustryandtheresidentsoftheisland.The State of Alaska hasinvestedmorethansixmilliondollarstodateinexploratorydrilling and design and feasibility determinations for the Makushin Vol Luss ye 19304 T9075 614577 DCED/INT'L TRADE Geothermal Project,and has located a qualified private geothermal developer as the Alaska Energy Authority's partner in this power aplant.The project,which benefits tre energy users in the area,has been determined to be feasible and will provide power at lower costs than will otherwise be available from fossil fuels.We would like to see the project constructed to provide the next stage of infrastructure in support of Unalaska's development and long term Stability. We think it is time the major power users at Unalaska and the public parties (State of Alaska,City of Unalaska)come forward and see if we can make commitments to provide this competitively priced power.Commitments are necessary for the project's financing andconstyy:Vow , n.We think that this project may be logical and profitable in a business sense. The State has invested millions at Unalaska and in the Makushin project,and wé will enhance the credit of this project as a further contribution --we may -enen be willing to take an equity share.We feel that the industry that benefits from this infrastructure must make its contribution either through firm commitments to purchase power from the City of Unalaska (which will distribute the geothermal project power)or by becoming equity partners in the project,as required by the project's alternative financing plans.I have instructed the Alaska Energy Authority to work closely with you so that we may complete this important facility. I would like to meet personally with you and the other Unalaska onshore processors,as well as with your American/Japanese partners,to resolve this matter.We hope that if we get all of the Mooz2 asvusa0iaais VLED/LNT L TRADE 003 parties together we can find a way to bring the effort to closure.The meeting will occur on Saturday,April ?,1992 at 00:00 a/p.m.,at location,and I urge your attendance.Commissioner ofAGHExecctiveDivecteCharl?«4usseftCommerceGlennOldsandPaulFuhs,my legislative liaison will coordinate the meeting. I would appreciate your immediate attention to this request and the confirmation of your attendance, subsdau \theyewyetecl é Ae ttn .FTtls hatte.He LafensPlccetneo Ca 2 MY weetel patter corSoeFuhsayHaLeadBein'Morererier fF\Shoe lene?Dare\Phe vets atend fla.Contes SiaOld;slartl he Doing Hanhences.Anny poe reves lobe!shalsa IStllag (Ji,P- WUUL -_Po TO ae 7”SP U |DAT aah -nic an Dent more ol FALE---REP Weed Processor Japanese Principals Dear In recent years the state of Alaska has followed an aggressive policy me ol 477 of encouraging the sevelOpme NT of Alaska's bottom fishing industry.To this end we must continue LS tight to create a climate that assists the private sector in establishing onshore processing capability thereby creating Nek?Developments on Unalaska Island are a great example ofhe result7of jobs from the resources. ch cooperation between the State and the bottom fishing industry.We have created the infrastructure (most recently the just completed AIDEA dock)necessary to make industry operations at UnalaskasAhevGjpossibleandprofitable.Together we have fought in alt arenas to provide the maximum allocation to offsh ore fisheries resources to onshore processors.As you know,together we recently prevailed with the United States government in establishing the generous onshore allocation required to assure the future of operations such as yours. As important next step in the State's development program for Unalaska is to provide a stable source of economic electrical energy for industry and the residents of the islan invested more than six million dollars to and design and feasibility determinations d.The State of Alaska has date in exploratory drilling for the Makushin taut h volLysoe Ld.04 qrvuroo1aais DUED/INT'L TRADE @oo2 Geothermal Project,and has located a qualified private geothermal developer as the Alaska Energy Authority's partner in this powerplant.The project,which benefits he energy users in the area,has been determined to be feasible and will provide power at lower costs than will otherwise be available from fossil fuels,We would like to see the project constructed to provide the next stage of infrastructure in support of Unalaska's development and Jong term Stability. We think it is time the major power users at Unalaska and the public parties (State of Alaska,City of Unalaska)come forward and see if we can make commitments to provide this competitively priced power.Commitments are necessary for the project's financing andAasstwuckiaa),...oy .completion.We think that this project may be logical and profitable in a business sense. The State has invested millions at Unalaska and in the Makushin project,and we will enhance the credit of this project as a further contribution --we may efen be willing to take an equity share.We fee]that the industry that benefits from this infrastructure must make its contribution either through firm commitments to purchase power from the City of Unalaska (which will distribute the geothermal project power)or by becoming equity partners in the project,as required by the project's alternative financing plans.I have instructed the Alaska Energy Authority to work closely with you so that we may complete this important facility. I would like to meet personally with you and the other Unalaska onshore processors,as well as with your American/Japanese partners,to resolve this matter.We hope that if we get all of the Ud LBs Ee Ld:04 EPVUIIOLAST7 DCED/INT'L TRADE 003 parties together we can find a way to bring the effort to closure.The meeting will occur on Saturday,April ?,1992 at 00:00 a/p.m.,at location,and I urge your attendance.Commissioner ofACrExecuteDirechCheulteBerwrelf,Commerce Glenn Olds,and Paul Fuhs,my legislative liaison will coordinate the meeting. I would appreciate your immediate attention to this request and the confirmation of your attendance. NNR 12-1992 25956 RU Untiskt)DICK Pace te Pb ener ' ww -Se "$0.Beng Preis).UniSea AU hes ea Euseay horite Rit .Fae Ne.90%)solasad FAX NO.-702-355-5656 Mareh 12,1992 Mr.Dan Sehochet OESI Power Corporation610EaatGlendaleAvanue Sparks.Nevada 89431 Dear Mr.Schochet: After revicwing the material faxed to us last week concerning the potantial for equity investment in the Unalaska Geothermal Power Project,UniSea has concluded it is not in our best interest to pursue this project.This conclusion is based on cur inability to project the future abundance of the Fishery recource with any degraa of certainty. Also,I believe'it was unfair to insinuate on Unalaska television that the geothermal preject may be in jeopardy due to lack ofcommitmentfromUniSea.We aren't the only ones in the communitythathaveexpressedconcerns.To lay the blame for potential failureofthisprojectsolelyonUniSea's shoulders is really unfair. Please be assured if Geothermal electricity ies available to purchase on @ spot basic,at a cost less than oir cost of generation,UniSeawillbeacustomer.We area unwilling to commit,however,to a "uceerpay”conleact for any period of time. Sincerely yours,UNISEA,INC. . J,Richard Pace Precident sph ¢c Roe Sturgelewski Alec Brindle Oreg Baker ™*.Py? ValBea,Ino. 13400 Northeast Fh Street,P.O.Bux 97019.Redmond,Washington 92072 B71 (208)8S1-8181 Fax (nf)RR2-1660 TOTAL P.@1 200/200B |eee0/200 945 £91009 2euIN acac cee mI eeeTT FasAT /AaAN DRAFT March 17,1992 Processor Japanese Dear twmewerviaw LETTER FROM GOVERNOR HICKEL TO POTENTIAL INDUSTRIAL PURCHASERS OF MAKUSHIN GEOTHERMAL POWER Principals In recent years,the State of Alaska and my administration have followed an aggressive policy of encouraging the dev assists the private s¢ elopment of Alaska's bottom fishing industry,and of fighting to create a climate that ctor in establishing onshore processing capability and creating Alaskan jobs. Developments on Unalaska Island are a prime example of the contribution the State has made to your industry.We have to make your operat the maximum allo prevailed with the assure the future of 1 An important next st preated the infrastructure (most recently the fust completed AIDEA dock)necessary 'ions at Unalaska possible and profitable.We have fought in all arenas to provide v to offshore fisheries resources to onshore processors,As you know,we recentlyitedStatesGovernmentinestablishingthegenerousonshoreallocationrequiredto Dperations such as your own. ep in the State's development program for Unalaska is to provide a stable source of economic electrical energy for industry and the residents of the island.We have invested more than six million dollars to date in exploratory drilling and design and feasibility determinations for the Makushin Geothermal Project,and have located a qualified private geothermal developer as the Alaska Energy Authority's partner this power plant.The project,which benefits the energy users in the area,hasIextremelyhighfeasipilityandwillprovidepoweratlowercoststhanwillotherwisebeavailable,My on mitt AWLIIVINe TI & administration wants of Unalaska's indust Pursuant to this poli will assign Alaska's It is time for the maj competitively priced power. y or1iTmodg »GO USPM + |to see the project constructed to provide the next stage of infrastructure in support ry. cy,the State expects to commit another $12 million dollars as a reserve funds,and Moral Obligation to the debt the Energy Authority will issue to complete the project. br power users at Unalaska to come forward and make commitments to purchase this These commitments are necessary for the project's financing and completion.They are also logical and profitable in a business sense,and will demonstrate that the fishing industry both welcomes its partnership with the State of Alaska and the City of Unalaska in developing our onshore fishing industry,and also appreciates our efforts on your behalf regarding onshore allocation. The State has invested millions at Unalaska and in the Makushin project,and we will enhance the credit of this project as a T contribution.I feel that the industry that benefits from this infrastructure mustmakeitscontributioneitherthroughfirmcommitmentstopurchasepowerfromtheCityofUnalaska (which will ot the geothermal project power)or by becoming equity partners in the project,asrequiredbytheprojct's alternative financing plans.I have instructed the Alaska Energy Authority to work closely with you so that we may complete this important facility. I would like to meet personally with you and the other Unalaska onshore processors,as well as with your Amerlcan/Japanese partners,to resolve this matter.The meeting will occur on April 2,1992 at 00:00 a/p.m.,at |___location,and I urge your attendance. I appreciate your imtnediate attention to this request and the confirmation of your attendance, 7UZS2597Z9%AK ENERGY AUTHORITY:#3 tveuvuglev7 AN ENGNNT AUIMUNSIT | enes<a %mY PoweryaCorporation FACSIMILE COVER PAGE SENT TO:AN EW Ole Cureerr Nueus-ecty MESSAGE #:ATTENTION:"Fs-2.50 "ess FAX NUMBER:_CYe¥S Sbi-ev 9a FROM:Nm?Awos SS eu scugT DATE:_$--\*+-Se|co:(few Gaegini -Secs Dstt oun,FILE NUMBER: NUMBER OF PAGES (INCLUDING COVER SHEET):3 IF YOU HAVE DIFFIC ULTY RECEIVING THIS FAX,PLEASE CALL (702)355-5656 AND ASK FOR:. Vo re Pe Cy TS \S Ce ery ee Tree?rernh :-_Le Oe ve.Tene ie Goo.Wee a SL."=e we Yeu C AoE mow LL Ant Ee =o DS eum "Ti Lmaty Es. . »D Ve nr ym -|frees -at 1 "To 5 =;bat eae oe (-YL _ aw ;MSAveSeAovNXalCOneiee y DRAFT LETTER FROM GOVERNOR HICKEL TO POTENTIAL INDUSTRIAL March 17,1992 PURCHASERS OF MAKUSHIN GEOTHERMAL POWER Processor Japanese/Principals Dear In recent years,this State of Alaska and my administration have followed an aggressive policy of encouraging the development of Alaska's bottom fishing industry,and of fighting to create a climate that assists the private se ctor in establishing onshore processing capability and creating Alaskan jobs. Developments on Unalaska Island are a prime example of the contribution the State has made to your industry.We have treated the infrastructure (most recently the just completed AIDEA dock)necessary to make your operat ions at Unalaska possible and profitable.We have fought in all arenas to provide the maximum Le offshore fisheries resources to onshore processors,As you know,we recentlyprevailedwiththe assure the future of ited States Government in establishing the generous onshore allocation required to Pperations such as your own. An important next step in the State's development program for Unalaska is to provide a stable source of economic electrical energy for industry and the residents of the island.We have invested more than six million dollars to date in exploratory drilling and design and feasibility determinations for the Makushin Geothermal Project,and have located a qualified private geothermal developer as the Alaska Energy Authority's partner in this power plant.The project,which benefits the energy users in the area,has extremely high feus!bility and will provide power at lower costs than will otherwise be available.My coe lt wh te eT Umm 10409091297 AN ENENUY AUIMURITY:%3 administration wants to se¢the project constructed to provide the next stage of infrastructure in support of Unalaska's industry. Pursuant to this polity,the State expects to commit another $12 million dollars as a reserve ontand will assign Alaska's Moral Obligation to the debt the Energy Authority will issue to complete the project. It is time for the major power users at Unalaska to come forward and make commitments to purchase this competitively priced power.These commitments are necessary for the project's financing and completion.They are also logical and profitable in a business sense,and will demonstrate that the fishing industry both welcomes its partnership with the State of Alaska and the City of Unalaska in developing our onshore fishing industry,and also appreciates our efforts on your behalf regarding onshore allocation. The State has invested millions at Unalaska and in the Makushin project,and we will enhance the credit of this project as a er contribution.I feel that the industry that benefits from this infrastructure must make its contcibutlon either through firm commitments to purchase power from the City of Unalaska (which will distribute the geothermal project power)or by becoming equity partners in the project,asrequiredbythevale.alternative financing plans.I have instructed the Alaska Energy Authority to work closely with yqu so that we may complete this important facility. I would like to meet personally with you and the other Unalaska onshore processors,as well as with your American/Japanese partners,to resolve this matter.The meeting will occur on April 2,1992 at 00:00 a/p.m.,at |__location,and I urge your attendance. I appreciate your immediate attention to this request and the confirmation of your attendance, SENT BY*Xerox 11 eCOpLer FULY +ITZITYL +Oe UaAM +BVIaQVII00%17 VUCUUSUIR «& 1/24/92 Ron -- I don't know whether you've spoken with Dick Pace,or how theconversationwent;but,I suggest that perhaps Glenn might want to ask theGovernortosendalettersimilartotheenclosedwithinthenextfewdays. The problem here,as I'm sure you've heard from OESI and maybetheEnergyAuthority,is that Dick sofar has not made time to even discussUniSea's participation,and that their participation is critical if the financing istogoandtheprojectgetbuilt. Participation does make good sense for the processors,as well as fortheStateandtheCity.The power purchase agreements and financing documents do have some minimal wiggle room,to allow the Authority toalleviatesomeoftheprocessors'concerns.But they need to get UniSea into a good faith negotiation to get it done. The letter is drafted to go to all the processors,with a couple of things in mind,which explain its tone: 1.The Authority is apparently afraid that Dick figures if he holds outlongenoughtheStatewillfundtheprojectwithagrant.You know that thatwillneverhappen.Hence the Governor's statements that the State has donelotsfortheindustry,and will do no more on this project. 2.We suspect that the parent company,if they see a copy of thisletter,will be most anxious to please the Governor,and will at least instructDicktositdownandtalk.The best outcome would be if the Governor (or Glenn or yourself)would send copies to the parents,maybe even with ahandwrittennotationthathewouldverymuchappreciatetheirparticipation in this public-private partnership. I would hope you could get Glenn to broach this with the Governor. 9- LeResche &Co. SEN]BYsXerox lelecopier ULV 5 Inmdie9s 1 Br SSAM |yuTanssoal”DOLUUaOIH OA DRAFT LETTER FROM GOVERNOR HICKEL TO POTENTIAL INDUSTRIAL PURCHASERS OF MAKUSHIN GEOTHERMAL POWER 15 January 1992 Mr.J.Richard Pace,President UniSea,Ine. P.O.Box 97019 Redmond,Washington98073-9719 Dear Mr.Pace; In recent years the State of Alaska and my administration havefollowedanaggressivepolicyofencouragingthedevelopmentofAlaska'sbottomfishingindustry,and of fighting to create a climate that assists theprivatesectorinestablishingonshoreprocessingcapabilityandcreatingAlaskanjobs. Developments on Unalaska Island are a prime example of thecontributiontheStatehasmadetothehealthofyourindustry,We havecreatedtheinfrastructure(most recently the just-completed AIDEA dock)necessary to make fish processing at Unalaska possible and profitable.Wehavefoughtinallarenastoprovidethemaximumallocationofoffshore fisheries resources to onshsore processors. An important next step in the State's development program forUnalaskaistoprovideastablesourceofeconomicelectricalenergyforindustryandtheresidentsoftheisland.We have invested more than six million dollars to date in exploratory drilling and design and feasibilitydeterminationsfortheMakushinGeothermalProject,and have located aqualifiedprivategeothermaldeveloperastheAlaskaEnergyAuthority'spartnerinthispowerplant.The project has extremely high feasibility andbenefitsforenergyusersinthearea,and will provide power at lower coststhanwillotherwisebeavailable.I want it constructed to provide the nextstageofinfrastructureinsupportofUnalaskaindustry. Pursuant to this policy,the State will commit another $12 million dollars as a reserve fund,and will assign Alaska's Moral Obligation to thebondstheEnergyAuthoritywillissuatocompletetheproject. SENT BY:Xerox Telecopier 7UZ2U +In27"9S +BH SOAM 5 YUTSOSSOSI9 DOLUUSOI®& Draft Letter from Governor Hickel 1/22/92 page 2 It is time for the major power users at Unalaska to step up to the plateandmakecommitmentstopurchasethiscompetitively-priced power.Thesecommitmentsarenecessaryfortheproject's financing and completion.Theyarealsologicalandprofitableinabusinesssense,and will demonstrate thatthefishingindustrywelcomesitspartnershipwiththeStateofAlaskaandtheCityofUnalaskaindevelopingouronshorefishingindustry. The State has invested millions at Unalaska and in the Makushin project,and we will enhance the credit of the bonds for this project as afurthercontribution.Now the industry that benefits from this infrastructure must make your contribution by commiting to purchase power fromMakushin,as required by the project financing plan.I have instructed theAlaskaEnergyAuthoritytoworkcloselywithyoutoobtainyourcommitmentsothatwemaycompletethisimportantfacility. T appreciate your imumediate attention to this matter. Sincerely, Walter J.Hickel Governor JHN-ObWISsZ lise =FRUM UNISER DICK PACE TO 919075618584 P,02 ).UniSea January 6,1992 Mr.Brent N.Petrie Manager,Agency Operations Alaska Energy Authority P.O.Bor 190869 Anchorage,AK 99519-0869 Dear Mr.Petrie: As we have discussed over the telephone on numerous cccasions,UniSea is unwilling to enter into an extended contract to purchase powerfromtheMakushinGeothermalProject.We support the project and would very much like to see it completed,but the uncertainty of thefisheryresourcemakesittooriskyforUniSeato-sign an extended contract. It appears that the 13¢/kWh rate for 1994 is reasonable.It alsoappearsthat3800kWdemandisalsoreasonable.The part that concerns UniSea is the obligation to pay $3,653,000 at a minimum, even though we may not utilize 28,100,000 kWh.We do not know from year to year how much time the plant will be permitted to operate < -or even if we will operate.The recent announcement by NMFS to closeevengreaterareastocommercialfishingadjacenttoseaLionrookerieshasaprofoundnegativeeffectonourfishcatching capability. If this project igs to proceed,I believe the state of Alaska shouldunderwritetheentireproject.I don't believe any of us who makeourlivelihoodfromthewhimsofMotherNatureandtheenvironmental community can commit to purchase power for more than minimal periods of time. Sincerely yours, UNISEA,INC. x Richard Pace President /pb ce Roe Sturgelewski,Unalagka Public Works Terry Shaff UnlSea,Inc. 15400 Northeast 90th Street,P.O.Box 97019,Redmond.Washington 96073-9719 (208)881-9181 FAX (206)882-1660 TOTAL P,@2- State of AlaskaDNWaiterJ.Hickel,Governor atk Alaska Energy Authority A Public Corporation January 3,1992 Mr.Richard Pace General ManagerUnisea,Inc. P.O.Box 97019 Redmond,WA 98703 Subject:Makushin Geothermal Project Dear Mr.Pace: Thank you for your quick telephone response to my letter of January 2,1992.Wearepleasedthatyoubelievethe$0.13/kWh would be acceptable to Unisea.Wealsofullyunderstandyourreservationinexecutinga30-year contract for powerpurchaseinanindustrythathasahistoryofchange. I have discussed the latter issue with members of the project financing team and wewillreviewsomeoptionsforaddressingyourconcern.We would also like to make apresentationtoyouthatwouldallowsomediscussionandinteractiononthisissue.It may be possible that we can develop a contract between Unisea and the City ofUnalaskathatwouldaddressUnisea's concern and still be satisfactory to the City.Because the issues are complex,it would be helpful to meet with you after yourreturnfromoverseas,at your earliest convenience,prior to January 31 and discussalternateapproachesthatwouldbeacceptabletoUniseaaswellasprojectinvestorsandbankers. If you believe this approach to be workable,would you please indicate a date andplacewhereyouwouldbeabletomeet.If you must be in Dutch Harbor in lateJanuary,we would be willing to meet with you there.I believe we could have ameaningfulpresentationanddiscussioninatwo-hour period. Sincerely, Brent N.Petrie Manager,Agency Operations BNP:it [PO.Box 110809 Juneau,Alaska 99811-0809 (907)465-3575&PO.Box 190869 704 East Tudor Road =Anchorage,Alaska 99519-0869 (907)561-7877 92Q1\IT2237(1) (ANGHORAGE Teltecopy Phone No. Alaska Snergy Authority 42.5.6 Senease TEL €carv (907)561-8584) CJUNEAY Telecopy Prone No.(907)468-3767) TELECOPY SENT TO: MAME OF COMPANY: COMPANY ADORESS: SENDER:_""Bewer 7 Fe 7 7e we. Dick "PACEL\Sc Arras:"Par BE Pmeph,tare TELECOPY PHONE NUMBER:Z.O2G4-SGi-5 2>s40 TELEPHONG mood'9 2GA-22.30 CHARGE CODE:INCLUDING THIS COVER PAGENURERorPROESSENT: CATE SENT: SPECIAL INSTRUCTIONS: Jusnmet cs) =Fe=- Ir YOuGDHT RECEIVE ALL OF THIS TELECOPYAnshereage:333 PLEASE CALL: 361-7877 468-3675 ester oapan Aieaeee SVETOCBGP =(9G7)SHt-7877 TRANSMISSION REPORT THIS DOCUMENT WAS SENT *k COUNT ** #2 *4K SEND +k (REDUCED SAMPLE ABOVE) NO REMOTE STATION I.0.START TIME DURATION #PAGES COMMENT 1 8615390 1-3-92 17:05 1°52"2 TOTAL 0:01°52”2 XERGX TELECOPIER 7020 q State of AlaskaDNWalterJ.Hickel,Governor ant, Alaska Energy Authority A Public Corporation January 3,1992 Mr.Richard Pace General ManagerUnisea,Inc. P.O.Box 97019 Redmond,WA 98703 Subject:Makushin Geothermal Project Dear Mr.Pace: Thank you for your quick telephone response to my letter of January 2,1992.Wearepleasedthatyoubelievethe$0.13/kWh would be acceptable to Unisea.Wealsofullyunderstandyourreservationinexecutinga30-year contract for powerpurchaseinanindustrythathasahistoryofchange. I have discussed the latter issue with members of the project financing team and wewillreviewsomeoptionsforaddressingyourconcern.We would also like to make apresentationtoyouthatwouldallowsomediscussionandinteractiononthisissue.It may be possible that we can develop a contract between Unisea and the City ofUnalaskathatwouldaddressUnisea's concern and still be satisfactory to the City.Because the issues are complex,it would be helpful to meet with you after yourreturnfromoverseas,at your earliest convenience,prior to January 31 and discussalternateapproachesthatwouldbeacceptabletoUniseaaswellasprojectinvestorsandbankers. If you believe this approach to be workable,would you please indicate a date andplacewhereyouwouldbeabletomeet.If you must be in Dutch Harbor in lateJanuary,we would be willing to meet with you there.I believe we could have ameaningfulpresentationanddiscussioninatwo-hour period. Sincerely,Curt lEbayBrentN.Petrie Manager,Agency Operations BNP-:it Ol PO.Box 110809 Juneau,Alaska 99811-0809 (907)465-3575PO,Box 190869 704 EastTudorRoad Anchorage,Alaska 99519-0869 (907)561-7877 92Q1\IT2237(1) Prevod Y State of AlaskaDNWalterJHickel,Governor at Alaska Energy Authority A Public Corporation January 2,1992 Mr.Richard Pace General Manager Unisea,Inc. P.O.Box 97019 Redmond,WA 98703 Subject:Makushin Geothermal Project Dear Mr.Pace: Since September 1991,substantial work has been underway by OESI Power Corporation,the City of Unalaska,the Alaska Energy Authority and their consultants on the proposed geothermal project that could serve Unalaska.Unisea staff in Dutch Harbor were very helpful in providing suggestions and technical information to our consultants involved with modeling of project dispatch of electrical energy and project financing. VISTEANZa/2/\As presently proposed,the geothermal plant would have an average output of 10,850 kW and be capable of delivering 82,000,000 kWh per year at a 90%capacity factor.The plant size could be easily increased to 12,450 kW average capacity with the addition of one generating module. Based on the information we have to date,it appears that the Energy Authority and the City could offer Unisea a contract with the following general terms: °28,100,000 kWh per year (approximately 34%of the geothermal plant output) up to a 3,800 kW maximum demand at any given time (additional amounts could be available on an interruptible basis); The approximate rate would be $0.13/kWh in 1994 dollars for an annual commitment to pay of $3,653,000. The term of the contract would be for 30 years with an "out"provision if the processing facility shut down for at least one year and did not intend to reopen. C]PO.Box 110809 Juneau,Alaska 99811-0809 (907)465-3575 %PO.Box 190869 701 EastTudor Road Anchorage,Alaska 99519-0869 (907)561-7877 +92Q1MT2235(1)-wa oe Mr.Richard Pace January 2,1992Page2 We are scheduled to present a status report on the project to the Unalaska City Council in late January and would appreciate an indication of Unisea's interest in entering into detailed negotiations for a share of project output.If you may be interested in entering into such a contract,would you please let me know as soon as possible.If you are not interested in future negotiation,that,too,would be very helpful information at this point of the project. Thank you for your consideration. Sincerely,=a ?CESKRYUSeiBrentN.Petrie Manager,Agency Operations BNP:it 92Q1\ITIT2235(2) aan \Sare rraascaDNWatters".cxeal,Scvercc: Alaska Energy Authority A Puolic Corporation January 2,1992 Mr.Richard Pace General Manager Unisea,Inc. P.O.Box 97019 Redmond,WA 98703 Subject:Makushin Geothermal Project Dear Mr.Pace: Since September 1991,substantial work has been underway by OESI Power Corporation,the City of Unalaska,the Alaska Energy Authority and their consultants on the proposed geothermal project that could serve Unalaska.Unisea staff in Dutch Harbor were very helpful in providing suggestions and technical information to our consultants involved with modeling of project dispatch of electrical energy and project financing. As presently proposed,the geothermal plant would have an average output of 10,850 kW and be capable of delivering 82,000,000 kWh per year at a 90%capacity factor.The plant size could be easily increased to 12,450 kW average capacity with the addition of one generating module. Based on the information we have to date,it appears that the Energy Authority and the City could offer Unisea a contract with the following general terms: °28,100,000 kWh per year (approximately 34%of the geothermal plant output) up to a 3,800 kW maximum demand at any given time (additional amounts could be available on an interruptible basis); The approximate rate would be $0.13/kWh in 1994 dollars for an annual commitment to pay of $3,653,000. The term of the contract would be for 30 years with an "out"provision if the processing facility shut down for at least one year and did not intend to reopen. C PO.Box 110809 Juneau,Alaska 99811-0809 (907)465-3575 , @ PO.Box 190869 701 EastTudor Road Anchorage,Alaska 99519-0869 (907)561-7877 QIDINTITIIASSTY "OAS,wet"24/2)\ Mr.Richard Pace January 2,1992Page2 We are scheduled to present a status report on the project to the Unalaska City Council in late January and would appreciate an indication of Unisea's interest in entering into detailed negotiations for a share of project output.If you may be interested in entering into such a contract,would you please let me know as soon as possible.If you are not interested in future negotiation,that,too,would be very helpful information at this point of the project. Thank you for your consideration. Ly /are yi {EIN =-__SO YW SOTA' Brent N.Petrie Manager,Agency Operations Sincerely, BNP:it ----=92QINITIT2235(2) a'Me'Alaska Gnergy Authority +2.08 Sarnarase TELE COoOPRY . (ANCHORAGE Telecopy Prone No.(907)561-8584) (JUNEAU Telecopy Phone No.(907)465-3767) TELECOPY SENT TO:KB 2 fe <S reve See ses sre £¢ D PaNAMEOFCOMPANY: COMPANY ADDRESS: CIDAfF4-SES KE SBl-RIB SHTELECOPYPHONENUMBER: TAS 2eanr J SarreeSENDER: eZC6l(-+2FtO cramez coor:TELEPHONE MBERs NUMBER OF PAGES SENT?_-=>INCLUDING THIS COVER PAGE DATE SENTs i /3 /4 2 Tr YOu OS GPT RECEIVE ALL OF THIS TELECOPY PLEASE CALL: Anahoreage =$3333 S62L -78a779C7)465-3875 SPECIAL INSTRUCTIONS:"ease en i PO San ARG Survecms,Mice 09644 (907)404-387o>Game SnaarenepeMiesCPEP-OLGS (SOF)$01-7877 woKK SEND kk TRANSMISSION REPORT THIS DOCUMENT (REDUCED SAMPLE ABOVE) WAS SENT *K COUNT *% #3 NO REMOTE STATION I.D.START TIME DURATION #PAGES COMMENT 1 85812187 1-3-92 9:51 1°46"3 TOTAL 0:01°46”"3 XEROX TELECOPIER 7020 =FO PO N ce Alaska Energy Authority LS mae aan27SrgVoorss! TELECOPY (ANCHORAGE Telecopy Phone No.(907)561-8584) (JUNEAU Telecopy Phone No.(907)465-3767) Coe STELECOPYSENTTO:_/\CE TVeGELEWSK | NAME OF COMPANY:DPX COMPANY ADORESS: ONALASKA- TELECOPY PHONE NUMBER:58(-2IEt Brest terre TELEPHONE NuMBER:<2G(-tZtO cnarcE cone: SENDER: NUMBER OF PAGES SENT:5 _INCLUDING THIS COVER PAGE DATE SENT:1/3 /la2z IF YOU 08 NOT RECEIVE ALL OF THIS TELECOPY PLEASE CALL: Anchorage:(907)561-7877Juneau:907)465-3575 SPECIAL INSTRUCTIONS:"P\eage_Ca \\UA e_ ye.Drclet Yaces we SOON Se.-- CS \e the, S Wrecd \ Box AM =Juneau.Alasea 99814 (907)465-3575Box190869-704 East luder Road AncnorageAliases99519-0869 (907)864-7877 'Stare crA asksNNaver;-cxe 3c-er Alaska Energy Authority A Puoic Coroorarier January 2,1992 Mr.Richard Pace General Manager Unisea,Inc. P.O.Box 97019 Redmond,WA 98703 Subject:Makushin Geothermal Project Dear Mr.Pace: Since September 1991,substantial work has been underway by OESI Power Corporation,the City of Unalaska,the Alaska Energy Authority and their consultants on the proposed geothermal project that could serve Unalaska.Unisea staff in Dutch Harbor were very helpful in providing suggestions and technical information to our consultants involved with modeling of project dispatch of electrical energy and project financing. As presently proposed,the geothermal plant would have an average output of 10,850 kW and be capable of delivering 82,000,000 kWh per year at a 90%capacity factor.The plant size could be easily increased to 12,450 kW average capacity with the addition of one generating module. Based on the information we have to date,it appears that the Energy Authority and the City could offer Unisea a contract with the following general terms: °28,100,000 kWh per year (approximately 34%of the geothermal plant output) up to a 3,800 kW maximum demand at any given time (additional amounts could be available on an interruptible basis); The approximate rate would be $0.13/kWh in 1994 dollars for an annual commitment to pay of $3,653,000. The term of the contract would be for 30 years with an "out"provision if the processing facility shut down for at least one year and did not intend to reopen. C PO.Box 110809 Juneau,Alaska 99811-0809 (907)465-3575 BB PO.Box 190869 701 EastTudor Road Anchorage,Alaska 99519-0869 (907)561-7877 92Q1\IT2235(1)ee "0aSye"2rylsoh Mr.Richard Pace January 2,1992 Page 2 We are scheduled to present a status report on the project to the Unalaska City Council in late January and would appreciate an indication of Unisea's interest in entering into detailed negotiations for a share of project output.If you may be interested in entering into such a contract,would you please let me know as soon as possible.If you are not interested in future negotiation,that,too,would be very helpful information at this point of the project. Thank you for your consideration. Sincerely,-->3 (GDISUTEL Brent N.Petrie Manager,Agency Operations BNP:it 92Q1MITIT2235(2) State of AlaskaDNWalterJHickel.Governor Alaska Energy Authority A Public Corporation TRANSMISSION COVER SHEET ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992 (UNALASKA GEOTHERMAL PROJECT) FINANCING TEAM PLEASE DELIVER TO: Mark Earnest,City of Unalaska (907)581-1417 Roe Sturgulewski,City of Unalaska (907)581-2187 Tom Klinkner,Wohlforth Argetsinger Johnson and Brecht (907)276-5093 Eric Wohlforth,Wohlforth Argetsinger Johnson and Brecht (907)276-5093 Lew Greenbaum,Katten Muchin &Zavis (312)902-1061 Daniel Schochet,OESI Power Corporation (702)355-5656CliffPhillips,OESI Power Corporation (702)355-5656 Mike Kreger,Perkins Coie,Anchorage (907)276-3108 Win Peterson,R.W.Beck &Associates,Seattle (206)441-4964 Ray Benish,R.W.Beck &Associates,Seattle (206)441-4964 Dave Helsby,R.W.Beck &Associates,Seattle (206)441-4964 Mike Hubbard,R.W.Beck &Associates,Anchorage (907)276-1751 Subir Sanyal,Ph.D.,GeothermEx,Inc.(510)527-8164 Brooks Chandler,Hicks,Boyd,Chandler & Falconer (907)274-3698 Jim Seagraves,John Nuveen &Co.,Seattle (206)382-1589 Jim Klasen,Department of Law,Anchorage (907)279-5832 Bow Leeescceve_FSO-TOF 4 Transmitted from:Alaska Energy Authority Anchorage,Alaska Fax:(907)561-8584 Number of Pages (Including Cover Sheet):3Date:slew.From,'BredtGekw e 2@b|-+2406 If there are any problems with this transmission,please call: Terri Ganthner (907)261-7256 Irene Tomory (907)261-7240 [PO.BoxAM Juneau,Alaska 99811 (907)465-3575 ; sd -PO_Box 190869704 EastIudor Road -Anchorage,Alaska 99519-0869 -(907)561-7877 -------.----- UNISEA Estimated contract energy 28,100,000 kWh/yr @ 13 ¢/kWh (1994)$3,654,000/yr Maximum demand 3,800 kW POWER REVENUE BONDS, Alaska Energy Authority A Pubuss Corpeorestiars TRANSMISSION COVER SHEET ALASKA ENERGY AUTHORITY SERIES 1992 CUNALASKA GEOTHERMAL FPROTJECT) FINANCING TEAM PLEASE DELIVER TO: Mark E3Earneaat, Roe Sturquiewski,Tom Kiliinkner,anda Brecht Eric wohiforthn,anda Brecht Law Greenkbaum,Daniel schochet,CILtee Pnillips,Mike Kreger,win Peterson,a7"______=>>Ray Benish,RW.Dave Helaby,R.W.--eooeMike Hubbard,Subir Sanyal,Pn.-----Brocka Chandler,Falconer Seaqraves, -_-Fe B_--> Jim Kiasen, Transmitted from: Number of Pages Data: R.w. R.w. John Nuveen &CoO., Department of Law, Ctmcludcding Cover Sheet): tle lor. city of UnaiaskacityofUnalaska wWohlftforth Argetasinger Jonnson Wohlforth Argetwawinger Jonnaon Katten Muchin &Zavis QESI Power Corporation OEST Power CorporationPerkinscCoie,AnchorageBeck&ABE OCiateam,SeattieBeck&Aseociates,Seattle Beck &Associates,Seattle Beck &Associates,Anchorage DB.,GeaothermEx,Inc.Hicka,Boyd,Chandler «& Seattie Anchorage Alagsgka Energy AuthorityAnchorage,Alaska Fax:(907)561-8584 Tr there are any problems with this transmission, ca RO.Bax AMaPS.Box 190869 Juneay.Alaska 99814 704 Eaat Tuco Reaa Terri Ganthnexr (907)261-7256 Erene Tomory (807)261-7240 (PO7}3665-3575 ANchorage Alaska 99519-0869 _&2 State at AsusWiralteesfdmircrkceel,Cocawasr creat Rotrie -B C907)S$e81-1417qceoo07)Sa8i-2187 907)276-s09o3 «c3so07)276-5093(312)902-1062 C702)355-5656 C702)355-56569007)276-3108€206)441-4964 (206)441-4964€2aoey 441-4964(907)276-1751 S27-B164exe «(9073 274 +-3698(206)382-1589 (907)2793-5832 TeF Ss B-7338 Pleage calls C907)601-7877 TRANSMISSTON REPORT THIS DOCUMENT WAS CONFIRMED (REDUCED SAMPLE ABOVE *«COUNT **« TOTAL PAGES SCANNED TOTAL PAGES CONFIRMED tk SEND Ak lokoSEE DETAILS BELOW) No.REMOTE STATION START TIME DURATION |]#PAGES MODE RESULTS 1 9072761751}1-6-92 16:44 1°32"2/2 COMPLETED 9600 TOTAL 0:01°32”2 NOTE: No.:OPERATION NUMBER 48 4800BPS SELECTED EC ERROR CORRECT G2 G2 COMMUNICATIONPDPOLLEDBYREMOTESFSTORE&FORWARD RI RELAY INITIATE RS RELAY STATION MB SEND TO MAILBOX PG POLLING A REMOTE MP MULTI -POLLING RM RECEIVE TO MEMORY : Alaska Enargy Authority &PUBbG Corpiraton TRANSMISSION COVER SHEET ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992 CUNALASKA GEOTHERMAL PROJECT) FINANCING TEAM PLEASE DELIVER To: Mark Earnest,City of WnalaskaRoeSturgulewski,City of Unalaska °Tom Klinkmer,Womhiforth Argetsinger JonngonandBrecht-_Eric wohlitfortn,-"and Brechta.Lew Greenbaum,Katten Muocohin &Zavis-----e-we DAMial schochet,OFSI Power CorporationGlteetPhillips,OCESI Power CorporationMikeKreger,Perkins Coia,AnchorageaWinPeterson,R-W.Back &Aswsociatos,Seattlea---™Bay.Benien,R.W.Beck &Associates,SeattleDaveHelsby,R.W.Beok &Asmociates,Saeaattleae>Mike Hubbara,R.W.Beck &Associates,.Bubixr Sanyal,Ph-.bD.,---_>Brooks Chandler,Falconer Seaqraves, _-S OK SL Wohilforth aArgat.ainger Jonnson AnchorageGeothnhermeE>sx,ino.Hickre,Boyd,Chandler «£ TFohn Nuveen &CoO.,SeattileTimKlassen,Pepartment of Law,Anchorage Tranamitted £L£rom:Alaska Energy Authority Anchorage,AlaskaFart(907)5S61-82584 Number of Paqes If there are any problems with thia tranamission, CTImnoludinyg Cover Sheet): Data:5 i a Terri Ganthner Irene Tomory (907)261-7256 (907)261-7240 MM PO.Bex AM Juneau.Ataska 998411 a PO.Box 190869 7O4%East tucior Read (907)465.3575 Anchorage Alaska 99519-0869 Shato ot MimsgKesCaLeetodel.Sb Covenoe sei-1417 S5eae1.--2137 ONNNOVdUe©OVoo00000K5O00NOOONNNNYYUNtakNattaelCelNealaledNtedotow4AAKRAAAAAAARANAAA9O7)}274-3698 206)382-1589g9O?7%3 279-5832 7o>2h-PsA Please calli: (907)561-7877 TRANSMISSION REPORT THIS DOCUMENT WAS CONFIRMED (REDUCED SAMPLE ABOVE - *COUNT **x TOTAL PAGES SCANNED TOTAL PAGES CONFIRMED 2 2 kK SEND kA SEE DETAILS BELOW) No.REMOTE STATION START TIME DURATION |#PAGES MODE RESULTS 1 206 441 4964|1-6-92 16:37 1°29"2/2 COMPLETED 9600 TOTAL 0:01°29”2 NOTE: No.:OPERATION NUMBER 48 4800BPS SELECTED EC ERROR CORRECT G2 G2 COMMUNICATIONPDPOLLEDBYREMOTESFSTORE&FORWARD RI RELAY INITIATE RS RELAY STATION MB SEND TO MAILBOX PG POLLING A REMOTE MP MULTI -POLLING RM RECEIVE TO MEMORY : Alaska Snergy Authority &Puthlic Coarparction TRANSMISSION COVER SHEET ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992 CUNALASKA GEOTHERMAL PROJECT) FINANCING TEAM PLEASE DELIVER TO: Mark Earnest.,City of UnalaskaRoeSturguiewaki,City of Unalanska /Tom Klinkner,Wohlforth Argeteinger JonnsonandBrechtSS,Eric,Wohiforthn,and Brecht Lew Greenbaum,Kattenm Muchin &gzgavisci---Je Daniel Schochet,OFST Power CorporationCIisa"erY Pnirrips,OCf&SI Power CorporationMikeKreger,Perkinsgs Coie,Anchorage:Win Peter@on,R.W.Beck &AswBooiatas,Seattle_-Ray Benisn,R.W.Beck £Associates,SeattleDaveHelsby,R.W.Beck &Associates, Wonlfortnh Argetsinger Jonnsaon SeattleOSMikeHubbard,R.W.Beck &Associates,AnchorageSubirsanyeal,PMmM.D.,GeothermEx,Ino.----Brooks Chandier,Chandler & Falconer --->lLim_Seagraves,John Nuveen &£Co.,SeattieTimKliaszgen,Department of Law,Anchorage -S SL. Hicks,Boyd, Tranamittedad from:Alaska Energy AuthorityAanchMhorage,AlaskaFax:(so7)}561-ase4 Nuraber of Pages le /r-r.. If there are any problems with this transmission, (907)261-7256 (9807)261-7240 CImoluding Cover Sheet): Dates: Terri Ganthner Trene Tomory m4 Pal RPO.Box AM duneau,Alaska 99844 PO.Box 190869 701 East wWacor Rood (9O7)}A6S-3575 ANGCHrOrage Alaska 9519-0869 Sicstee oor Micka Wweilre J rocket,Govern: (907)SB1-1417 (9307)SB81-2187 (907)276-5093 (907)276-8093 (322)902-1061 €702)355-5656 €702)>355-8656 (907)276-3108 €2QO6)44134--4964 €206)441-4964 C206)2441 -a9664 (907)276-1751 =Ss -B8 6Cee27164 (907)274 -3698 (206)382-1589 €9O7)279-5832 ro Sss6-F73238 __#2. please call: (907)561-7877 TRANSMISSION REPORT THIS DOCUMENT WAS CONFIRMED (REDUCED SAMPLE ABOVE - *k COUNT **x TOTAL PAGES SCANNED TOTAL PAGES CONFIRMED 2 2 #4 SEND Ack SEE DETAILS BELOW) No.REMOTE STATION START TIME DURATION |#PAGES MODE RESULTS 1 702 355 5656]1-6-92 16:34 1°07"2/ 2/EC COMPLETED 9600 TOTAL 0:01 °07"2 NOTE: No.:OPERATION NUMBER 48 4800BPS SELECTED EC ERROR CORRECT G2 G2 COMMUNICATIONPDPOLLEDBYREMOTESFSTORE&FORWARD RI RELAY INITIATE RS RELAY STATION MB SEND TO MAILBOX PG POLLING A REMOTE MP MULTI -POLLING RM RECEIVE TO MEMORY o™,|Alaska Energy Authortty &Pune Corporation TRANSMISSION COVER SHEET ALASKA ENERGY AUT POWER REVENUE BONDS, CUNALASKA GEOTHERMAL HORTTY SERIES 1992 PROJECT) FINANCING TEAM PLEASE DELIVER TOr Bubir Sanyal,_Brooks Chandier,Ph.D.,rnc. Chandler GeothermEx, Hicks,Boyd,ia Siesta cal Mlewsucs Wate ates 30 UNS et Se aw em tree ieeeoePalconear Mark Earnest,City oF Unalaska qeaav7)y S5a1i -12417RoaSturquiewski,city of Unalaska C907}§81---2187TomKiinkmer,Wohlforth Argetsinger JohnsonandBrecht.€9307)276-S093-_-__-Bric wonltfortn,Wonlfortnhn argetsinger JonnsonamaBrecht qe07)})276-sS093LewGreenbaum,Katten Muchim &Zavis q3122)BO2Z--1061---e_Danial Schochet,CEST Power Corporation C702)355-5656CIterTPnHillipsa,OESE Power Corporation €7O2)355-S656MikeKreger,Parkins cCoie,Anchorage €207)276-310awinPeterson,R.W.Beck &Associates,Faattilea qaae6)4241-4964_Beanish,R.W.Beck &£Agnociatans,Seattle 206)441-4964DaveHelsby,R.W.Back &Associates,Seattle (206)441-4964aaoSMikeHubbara,R.W.Beck &Ampgsociates,Anchorage (907)276-1751¢ ¢ ¢ < _.Beaqraves, Jim Klasen, ee OF EE Transmitted from: Jonnm Nuveen &Co., Department crf Law, Anchorage, Faxs Number of Pages (Including Cover Sneet)z Date:le /r-. Ir there are any preoeblems with this transmission, Terri Gantnhner Irene Tomeory (907) Jj = PO Box AM Jduneau.Alaska 99841 Po Box 190869 704 East Tudor Road (307) 907)274-3698Seattle206)3SB2 -1589 Anchorage 2oO7)279-5832 72>S26 -VF338 Alaska Energy Authority Alaska 8$61-s584 Pleage cails:s 261-7256 261-7240 (9307) (907)465-3575 Ancnoraga Alaska 99519-0849 (907)61-7877 TRANSMISSION REPORT THIS DOCUMENT WAS CONFIRMED (REDUCED SAMPLE ABOVE *«COUNT **x TOTAL PAGES SCANNED TOTAL PAGES CONFIRMED #4 SEND ake SEE DETAILS BELOW) 2 2 No.REMOTE STATION START TIME DURATION ;#PAGES MODE RESULTS 1|WOHLFORTH ET AL.,AKj 1-6-92 16:32 1°10"2/2 COMPLETED 9600 TOTAL 0:01°10"2 NOTE: No.:OPERATION NUMBER 48 4800BPS SELECTED EC ERROR CORRECT G2 G2 COMMUNICATIONPDPOLLEDBYREMOTESFSTORE&FORWARD RI RELAY INITIATE RS RELAY STATION MB SEND TO MATLBOX PG POLLING A REMOTE MP MULTI -POLLING RM RECEIVE TO MEMORY iS : Stare of Alaskaa'Wotter sd Hioke!l,Governor mn Alaske Energy Authority A Pupiic Corporation TRANSMISSION COVER SHEET ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 19923 (UNALASKA GEOTHERMAL FPROIECT) FINANCING TEAM PLEASE DOCELIVER TO: Mark Earnest,City of UnaiaskaRoesSsturgqgulewski,City of UnalaskaTomKlinkner,Wohitorth Argetsinger Jonnson=ia.Shiro Ris cai mnSS.ric Wo erth,Wo orth Argeteinger Jornnszon-ane Brecht vows Lew Greenbaum,Katten Muchimn &Zavis--me Briel Schosnet,OCFSI Power CorporationPnitlidips,OFSI FPower CorporationMikeKreger,Perkins cCoie,Anchorage - -oo Win Petereon,R.W.Beck &Associa ss,SeattleSSBay.Benish,R.W.Beck &Associata BeattieDaveHelsby,R.-W.Beck &Associates,Seattle --@ Mubbard,R.W.Beck &Agsociastes,AnchorageosSubirganyali,FPR.D.,GeothernmnEx,IFEna.ooks Chandler,Hicke,Boyd,CcChandier «& 581-1417 S$ai -2187 276-8093 -POOO0000rO90O00VARANNNNSVYNvWPIWwNUNBHAut]aIJ)aa[ARAAAARARARAAAOWNNONNUO©OY(907)ape Sengraves.JFohn Nuveen &Co.,Seattie C206)2-1589JimKlasen,PDepartment ofr Law,Anchorage €2307)99-5832-FS wroF ss8 -s3784 Tranemitted from:Alaska Energy AuthorityAnmonorege,AlaskaFaxus(9307)361-8504NumberofPagem(inoliluding Cover Sheet)s:#2. Datert , z£there are any problems with this transmission,please calli: Terri Gantnhner (907)262-7256 Trene Tomory (907)26232-7240 ao PS.Box AM Juneau,Aigska 9oa14 (9O?7?)}468-3575=m PS.Bon 4060869 7048 East Tudor Raad ANonorage Alaska 9OCS19-0869 (907)641-7877 TRANSMISSION REPORT THIS DOCUMENT (REDUCED SAMPLE ABOVE) WAS SENT *K COUNT #* #2 *aK SEND kak NO REMOTE STATION TIT.D.START TIME DURATION #PAGES COMMENT 1 02503171 1-6-92 16:34 2°04"2 TOTAL 0:02'04"2 XEROX TELECOPIER 7020 Stare of Alaska 'Wotter 3 Winks,Governor Alaska Energy Authority A Public Corporation TRANSMISSION COVER SHEET ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992 CUNALASKA GEOTHERMAL PROVUECT) FINANCING TEAM PLEASE DELIVER TO: S$a.-1417 $a81i-2187 Mark Earnest,City of UnalaskaReeSturguilieweki,City of UnaiaskaTemKiinkner,Wohltorth aArgetsinger JohnsonandBreoht-_-_-SS.Eric Wohilfortn,Wohlforth Argetainger JonnsenanBrecht 276-5093 276-8093 902-1061 355-5686 3255-35656 276-3108 441-4964 441-42964 441-4964 27671751 327-8164 Lew Greenbaum,Katten Muchin &ZaviseeBeritSahochet,OFSI Power Corporation¢PRrillips,OFS&I Fower CorporationMikeKreger,Frerkins Coie,anchorageSoeWinPeterson,R.W.Beok&Associates,Seattia----S Bay Benisn,R.W.Beck &Associate SeattleDaveHeleby,R.W.Beck &Associates,Seattiae@HubbPara,R.W.Beck &6 Associates,AnchorageBubirganyal,PH.D.,Geothermex,Ina.wo:ke Chandler,Hicks,Boyd,Chandler &ARAARAAARAARNAAAONNNOIVUY©OVOGO0000KOGG00NOGANNNNYJVNNSAIda ilconexr ¢€207)274-3698Beagqgraves,Jonrnn Nuveen &Co.,Seattie €206)3832 1589JimKliasen,Department of Law,anchorage €2307)279-5832 -=_-Fe L .; re?88-338 Transmitted froms Alaska Energy AuthorityAnchorage,AlaskaPaxs€907)S61-8saea Number of Pages (ITnoiuding Cover Sheet)¢_#&2 Date: If there are any proriems with this tranesmisgion,please caiis: Terri Gantnner (907)262 -7256 Irene Tomory (907)261-7240 3S eS.Box AKA duMr@au,Aiaska 99814 ([9O?7)466-3675==PO.Sox 190869 7604 East Tudor Road ANGHROrFragem AiGqaka 99519-0869 CPG7)S41-7E77 TRANSMISSION REPORT THIS DOCUMENT (REDUCED SAMPLE ABOVE) WAS SENT *k COUNT *% #2 ***SEND ke NO REMOTE STATION I.D.START TIME DURATIGN #PAGES COMMENT 1 9975868338 1-6-82 16:40 1'AT7"2 TOTAL 0:01'47°"2 XERGX TELECOPIER 7020 Stare of Aiaska Wotter)hicke!Governorme Alaska Energy Authority &Pvaiia Cor@eorotios TRANSMISSION COVER SHEET :ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992 (CUNALASKA GEOTHERMAL PROJECT) FINANCING TEAM PLEASE DPELIVER TO: Marx EFarnest,City of UnalaaskaRoeSturgquleweki,City of UnalaskaTomKiliinkner,Wohltforth Axrgetsinger Jonnagon $81 -1417 $eai-2187 and Breonht 276-5093----S_Eric Wonltortn,Wohlforth Argetazinger Jonnson-ana Breoht 276-5093LewGreenbaum,Katten Muchin &Zavisas soOozZ--1061--berist BSonceonhet,SCESI Power CorporationPnrillips,OEFBSI Power CorporationMikeKreger,Perkins Coie,Anchorage_Win Peterson,R.W.Beck &Associates,Seaattle 355--sS656 388-5656 276-3108 441-4964 ARRARARARAAAONNNOINEY©UUoooogcdoroeOo00NOOANDNDSJNNPSPSPS--_-mEay_Beniean,RW.Beck &AsBBoOciates,Seattia 441-4964DaveHalsby,R.W.Beck &£Agwmociates,Seattia 441-4964-Hubbard,R.W.Beck &Associates,Anchorage 276-1781Subirsanyali,PAR.D.,GeothermEx,Inc.Roe S27 -8164Rrgoxschandler,Hicks,Boyd,Chandler «&4 a lconer :(8307)274-3698Seagraves,Jonnm Nuveen &Co.,Seattiae €206)382-1849JimKiasen,Department of Law,Anchorage (907)279-5832.=re L.re>7 3h -F238 Transmitted fromsr Alaeska Energy AuthorityaAmcNnorage,AiaskaFaxs€907)S61 asaa Number of Pages (inoluding Cover sheet):_#2 Dates If there are any problems with this transmission,Please cali: Terri Gantnner (907)261-7256IreneTomory(9307)261-7240 2 RO.Box AM Juneau,Aiaska 99841 (9O7)465-3575=Px.Box 190869 701 Kast Tucder Road ANCHOrFage Alaske 99519-03869 (907)6641-7877 weet oe .a eeSe wee ee TRANSMISSION REPORT THIS DOCUMENT (REDUCED SAMPLE ABOVE) WAS SENT *k COUNT ** #2 wk SEND %**x NO REMOTE STATION I.0D.START TIME DURATION #PAGES COMMENT 7 206 382 1589 1-6-92 16:36 1°51"2 TOTAL 0:01'51"2 XEROX TELECOPIER 7020 N Alaska Energy Authority A Public Corporation TRANSMISSION COVER SHEET ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992 (UNALASKA GEOTHERMAL PROJECT) FINANCING TEAM PLEASE DELIVER TO: Mark Earnest,City of Unalaska Roe Sturgulewski,City of Unalaska Tom Klinkner,Wohlforth Argetsinger Johnson and Brecht Eric Wohlforth,Wohlforth Argetsinger Johnson and Brecht Lew Greenbaum,Katten Muchin &Zavis__.bev St Schochet,OESI Power Corporation"Cliff Phillips,OESI Power CorporationMikeKreger,Perkins Coie,Anchorage Win Peterson,R.W.Beck &Associates,Seattlef°-->Ray Benish,R.W.Beck &Associates,SeattleDaveHelsby,R.W.Beck &Associates,Seattle Mike Hubbard,R.W.Beck &Associates,Anchorage Subir Sanyal,Ph.D.,GeothermEx,Inc. Brooks Chandler,Hicks,Boyd,Chandler & Falconer Jim Seagraves,John Nuveen &Co.,Seattle Jim Klasen,Department of Law,Anchorage Alaska Energy Authority Anchorage,Alaska Fax:(907)561-8584 Transmitted from: Number of Pages (Including Cover Sheet):fo fe [erDate: State of Alaska WaiterJ Kickel.Governor 581-1417 581-2187 276-5093 276-5093 902-1061 355-5656 355-5656 276-3108 441-4964 441-4964 441-4964 276-1751 527-8164 274-3698 382-1589 279-5832 5¢§£-2332 If there are any problems with this transmission,please call: Terri Ganthner (907)261-7256 Irene Tomory (907)261-7240 1 PO.BoxAM Juneau,Alaska 99811 (907)465-357594-PO.Box 190869 -704 East Tudor Road -Anchorage,Alaska 99519-0869 __(907)561-7877 oe woe oa N eooy 7470 1 JO LODOS r.0c " 2).UniSea January 6,1992 Mr.Brent N.Petrie Manager,Agency Operations Alaska Energy Authority P.O.Box 190869 Anchorage,AK 99519-0869 Dear Mr.Petrie: As we have discussed over the telephone on numerous cccasions,UniSea is unwilling to enter into an extended contract to purchase power from the Makushin Geothermal Project.We support the project and would very much like to see it completed,but the uncertainty of the fishery resource makes it too risky for UniSea to sign an extended contract. It appears that the 13¢/kWh rate for 1994 is reasonable.It also. appears that 3800 kW demand is also reasonable.The part that concerns UniSea is the obligation to pay $3,653,000 at a minimum, even though we may not utilize 28,100,000 kWh.We do not know from year to year how much time the plant will be permitted to operate -+- or even if we will operate.The recent announcement by NMFS to close even greater areas to commercial fishing adjacent to sea Lion rookeries has a profound negative effect on our fish catching capability. If this project is to proceed,I believe the state of Alaska shouldunderwritetheentireproject.I don't believe any of us who make our livelihood from the whims of Mother Nature and the environmental community can commit to purchase power for more than minimal periods of time. Sincerely yours, UNISEA,INC. J.Richard Pace President /pb ce Roe Sturgelewski,Unalaska Public Works Terry Shaff UniSaa,Inc. 15400 Northeast 90th Street,P.O.Box 97019,Reamond.Washington 96073-9719 (206)881-8181 FAX (206)892-1660 -- TOTAL P.@2 Se 1 ee em a)a UNOCR DIUK reo tu JLlIVO (Obl YS04 Fr ).UniSea »O1 oh FAX TRANSMITTAL FORM A! re PLEASE DELIVER THE FOLLOWING PAGES TO:SR pence Petriets FAX NUMBER:Go7-SGl-SS &Y Pomel FROM:Wrete Oac ¢ NUMBER OF PAGES:2 (Including Transmittal Form) If you do not receive all of the pages,please call as soon as possible. PHONE:(206)861-5325FAX:(206)861-5390 Je}DATE:y LG) OPERATOR :OQgt aun Ar I UniSea,inc.a 15400 Northeast 90th Street.P.O.Box 97019,Redmond.Washington 98073-9719 (206)881-8181 FAX (206)862-1660 WO ek ee or ee Lia ot ml wee a eS I 74 4d ri,wueind(2010204 4} ).UniSea January 6,1992 Mr.Brent N.Fetrie Manager,Agency Operations Alaska Energy Authority P.O.Box 190869 Anchorage,AK 99519-0869 Dear Mr.Petrie: As we have discussed over the telephone on numerous cccasions,UniSea is unwilling to enter into an extended contract to purchase power from the Makushin Geothermal Project.We support the project and would very much like to see it completed,but the uncertainty of thefisheryresourcemakesittooriskyforUniSeatosignanextended contract. It appears that the 13¢/kWh rate for 1994 is reasonable.It also.appears that 3800 kW demand is also reasonable.The part that concerns UniSea is the obligation to pay $3,653,000 at a minimum, even though we may not utilize 28,100,000 kWh.We do not know from year to year how much time the plant will be permitted to operate --or even if we will operate.The recent announcement by NMFS to closeevengreaterareastocommercialfishingadjacenttosealionrookerieshasaprofoundnegativeeffectonourfishcatching capability. If this project is to proceed,I believe the state of Alaska shouldunderwritetheentireproject.I don't believe any of us who makeourlivelihoodfromthewhimsofMotherNatureandtheenvironmental community can commit to purchase power for more than minimal periods of time. Sincerely yours, UNISEA,INS. ci Richard Pace President /pb ce Roe Sturgelewski,Unalaska Public Works Terry Shaff UniSea,Ine.15400 Northeast 90th Street,P.O.Box 97019,Redmond.Washington 98073-9719 (208)881-6181 FAX (206)882-1660 7 "TOTAL P.@2 =urslY¥OWteADNVZalah 2270 10 LOVON Pr.we (3).UniSea January 6,1992 Mr.Brent N.Petrie Manager,Agency Operations Alaska Energy Authority P.O.Bor 190869 Anchorage,AK 99519-0869 Dear Mr.Petrie: As we have discussed over the telephone on numerous cccasions,UniSea is unwilling to enter into an extended contract to purchase power from the Makushin Geothermal Project.We support the project and would very much like to see it completed,but the uncertainty of the fishery resource makes it too risky for UniSea to sign an extended contract. It appears that the 13¢/kWh rate for 1994 is reasonable.It also. appears that 3800 kW demand is also reasonable.The part that concerns UniSea is the obligation to pay $3,653,000 at a minimum, even though we may not utilize 28,100,000 kWh.We do not know from year to year how much time the plant will be permitted to operate <- or even if we will operate.The recent announcement by NMFS to close even greater areas to commercial fishing adjacent to sea Lion rookeries has a profound negative effect on our fish catching capability. If this project is to proceed,I believe the state of Alaska shouldunderwritetheentireproject.I don't believe any of us who make our livelihood from the whims of Mother Nature and the environmental community can commit to purchase power for more than minimal periods of time. Sincerely yours, UNISEA,INC. Kv Richard Pace President /pb ce Roe Sturgelewski,Unalaska Public Works Terry Shaff UniSea,Ine.15400 Northeast 90th Street,P.O.Box 97019,Recmond.Washington 96073-9719 (206)881-8181 FAX (206)882-1660 TOTAL P.@2