HomeMy WebLinkAboutBPMC October 14 1994Bradley Lake Office
Filing System (BLOFI)MASTER BLOFI LOG
Year |Code Date Key Word From Description
1994 {13-05 |02/03/94:{Insurance AEA PMC Insurance Subcommittee Minutes
1994 {13-05 [02/10/94 {Insurance AEA PMC Insurance Subcommittee Minutes
1994 |13-05 |03/09/94:|Insurance AEA PMC Insurance Subcommittee Minutes
1994 |13-05 [04/27/94 jInsurance AEA Operator Liability -BLHP
1994 |13-05 [05/16/94 insurance AEA Operator Liability -BLHP
1994 {13-05 [09/15/94 {Insurance AEA Operator Liability -BLHP
1994 13-05 12/19/94.Insurance CEA BLP Self-Insurance Reserves
Master BLOFI Log.xisBLOFI 1 of1 3/10/2003
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"-CHUGACH cLECTRICASSOCIATION,INC.sigan
ASSOCIATION,INC.
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December 19,1994 ara na qaQea
al emir
i acd trick DoverAlacs?:cet nothortt/Dennis McCrohan ond ss
AEA/AIDEA
480 W.Tudor Road
Anchorage,Alaska 99503-6690
Subject:Bradley Lake Project -Self-Insurance Reserves
Dear Mr.McCrohan:
The current Bradley Lake insurance policies have million dollar "deductibles".The utilities are effectively
"self-insuring"the first million dollars of such losses.It is likely that the level of this self-insurance will
increase to $2 million dollars in the next fiscal year.
Under the terms of the Power Sales Agreement,each utility is responsible for its percentage share of any such
loss (percentages attached).There is currently no budget reserve or other arrangement to cover this amount,
and each utility would need to provide their own share of a loss.In other words,upon occurrence of a million
dollar loss,ML&P (a 25.9%participant)would be obligated to provide $259,000.This would rise to
$518,000 if the limits are raised to $2 million dollars next year.
The Bradley Lake Project Management Committee (BPMC)Insurance Subcommittee has recommended that
the BPMC make arrangements either through a line of credit,or funding of an actual reserve,to cover these
risks.However,the BPMC Budget Subcommittee wishes to explore whether individual utilities are better
able to arrange for their individual share of these risks.In particular,we want to know if each individual
utility could include the Bradley Project under the utility's own insurance coverage up to the amount of the
utility's prorata share of the self-insured risk (boiler and machinery and/or property).
Aliernatives to this would include cach utility indicating its ability to pay its percentage share directly from
operating funds or cash reserves.
Please let me know by written response whether your individual utility believes it can satisfactorily address
its share of the self-insured risk.
Sincerely,
fw.
Thomas A.Lovas
Bradley Lake Budget Subcommittee Chairman
4976.TAL:TS
E 5601 Minnesota Drive »PO.Box 196300 «Anchorage,Alaska 99549-6300lavePhone907-563-7494 *FAX 907-562-0027
Exhibit D
Purchasers'Percentage Shares Of Project Capacity
And Of Annual Project Costs
PURCHASER PERCENTAGE SHARE
Alaska Electric Generation &
Transmission Cooperative,Inc.;
25.8
Chugach Electric Association,Inc.30.4
Golden Valley Electric
Association,Inc.-16.9
Municipality of Anchorage,d/b/a
Municipal Light and Power 25.9
City of Seward,d/b/a Seward
Electric System 1,0
|100.008
POWER SALES AGREEMENT FOR BRADLEY LAKE ENERGY
EXHIBIT D ==Page 1
a”;3-89 Ma
ALASKA INDUSTRIAL DEVELOPMENT
[_)AND EXPORT AUTHORITY = ALASKA@ME-ENERGY AUTHORITY
480 WEST TUDOR ANCHORAGE,ALASKA 99503 907 /561-8050 FAX 907 /561-8998
November 21,1994
Mr.Kirk C.Leadbetter,CIC
Vice President
Willis Corroon Corp.of Anchorage
4220 B Street
Anchorage,Alaska 99503
Subject:COREGIS Application
Directors'and Officers'Liability Policy
Bradley Lake Hydroelectric Project
Dear Kirk:
Enclosed you will find a fully executed application for D&O coverage of the
Bradley Lake Project Management Committee.Also enclosed are the
Agreement for the Sale and Purchase of Electric Power for the Bradley Lake
Hydroelectric Project,the current project By-Laws,and the project financial
statements prepared for FY 92 and 93 for the project by Parisena,Stromberg
and Company.
Please proceed in getting a quote for coverage for the Bradley Lake Project
Management Committee.If you have any questions or need more information,
please call.
Qaifh
Daniel W.Beardsley
Enclosures
cc:Norman_L.Story,BPMC Chairman
h:\blins\blins040
a
-COREGIS
INSURANCE Application
ORGANIZATIONS
7.
8.
.Scope of operations:
APPLICATION FOR
NONPROFIT ORGANIZATION LIABILITY INSURANCE
(THIS IS AN APPLICATION FOR A CLAIMS-MADE POLICY)
Part |-Background Information
.Name of Organization__Bradley Lake Project Management CommitteeAddress_c/o Alaska Energy Authority,480 West Tudor Road,Anchorage,AK 99503
(Number)(Street)(City)(State)(Zip)
.What is Organization's legal structure?_Committee of Purchaser Utility RepresentativesDateorganized:12/8/87 Date operations began:_9/1/91_Purpose of Organization:(Month/Year)(Month/Year)
Manages the operation of the Bradley Lake Hydroelectric Project.
State in which incorporated:__Alaska
Local__X _State
if Organization is regional,list states or areas served:
Regional National International.
.(a)List any affiliated organizations of which the organization owns more than 50%of the voting stock or appointsmorethan50%of the board of directors:__N/A
(b)Does the Organization have any subsidiaries operating for profit?(If Yes,please fist):___No
.Does the Organization have any stockholders or persons who profit from the operation except as salaried
employees?(If Yes,give details):No
.(a)Does the Organization receive donations or contributions from the genera!public?___No -
(b)Are contributions generally solicited?No
(c)Of the total contributions received,what is the net percentage
available for charitable purposes?0 %
(d)If the Organization receives government funding,what is the
percentage of total revenues?oO %
(e)Please provide the following information for the last three (3)years:
Year Total Revenue Total Expenditures *Current Fund Balance
19_92 $16,364,217 $16,258,588 $_175,163,17419.93 $17,448,722 $20,160,593 $_160,368,24319.94 $16,661,117 $21,174,175 $_155,855,744
Total number of individuals employed by the Organization?_None --All staff work is provided bycontractlabor.
Are any of the Directors,Officers,Trustees,or Employees indebted to the Organization?(If Yes,give details):
No
*-Includes depreciation expense.
9.
10.
Part !l-Association Details
If the Organization is an Association,please complete this section.
Number of chapters:Number of members:
Publications:__.Magazines ___Newsletters -Journals
Periodicals __Technical Manuals
(If any of the above are Yes,please attach a copy of each.)
CFM 92.1.0197 (5/92)PAGE 1 OF 4
11.(a)Is the Association involved in product testing/certification?Yes___No___
(b)Does the Association set professional standards or certify its members?Yes__._. No___
(c)Does the Association or its Directors,Officers,Trustees,or Employees act as an Administrator of any employee
benefit welfare plans under ERISA,or in any other fiduciary capacity for any other employee benefit welfare
plans?Yes No____
If Yes to any of the above,please provide details:
Part II|I--Governmental Information
12.Within the last three (3)years,has the Organization received any inquiry,complaint or notice of hearing from any
state or federal regulatory authority or agency or congressional or legislative committee?Yes No_X
(If Yes,give details):.
13.(a)Has the Organization filed a Tax Form in the last three years?Yes No__X
(b)If Yes,have the returns been accepted as filed?
Part lV-Insurance Coverage Information
14.(a)Directors and Officers Liability Insurance or Non-Profit Organization Liability Insurance carried during the past
three years,including expiring policy,if applicable:
Insurer Limit Retention Premium Exp.Date
NONE ne =e
(b)Has any same or similar insurance on behalf of the Organization been declined,cancelled or non-renewed?
Yes No_X If Yes,please explain:
(c)Has the carrier(s)of any same or similar insurance ever been given notice of claim or possible claim by theorganization?Yes...+No_X__If Yes,please explain:
(d)Doesthe Organization currentlycarryGeneral Liabilityinsurance?Yes___No_X- IfYes,pleasegive
carrier and expiration date:
(e)The officer of the Organization designated to receive any and all notices from the Insurer or the authorized
representative concerning this insurance is:Daniel W.BeardsleyAlaskaEnergyAuthority,480 West Tudor Road,Anchorage,AK 99503
Part V-Claim Information
If this is a renewal of a Crum &Forster Policy,skip to Part VI unless higher limits are desired.
15.Hasanyclaim been made,orisany nowpending,againstthe Organization,or any person proposed forthisinsuranceinthecapacityofeitherDirector,Officer,Trustee or Employee?(If Yes,give details):__No
16.Hasthe Organization and/orits Directors,Officers,Trustees or Employees been involvedin or have any knowledge ofpendingFederal,StateorlocalactionsorproceedingsagainsttheOrganizationand/oritsDirectors,Officers,Trustees
or Employees?(If Yes,give details):__No
17.Is any person proposed for this insurance cognizant of any fact,circumstance or situation which said person
has reason to suppose might afford valid ground for any future claim against said person and/or the Organization?
(If Yes,give details):__No
Ifsuch facts,circumstances or situations exist,any claim or action arising therefrom is excluded fromthe proposed
coverage.
CFM 92.1.0197 (5/92).PAGE 2 OF 4
48.The undersigned being authorized by,_|acting on behalf of,the applicant and persons or concerns seeking
19
20.
insurance,has read and understands this application,and declares all statements set forth herein are true,complete
and accurate.The undersigned further declares and represents that any occurrence or event taking place prior to the
inception of the policy applied for,which may render inaccurate,untrue,or incomplete any statement made herein will
immediately be reported in writing to the Insurer.The undersigned acknowledges and agrees that the submission and
the Insurer's receipt of such report,prior to the inception of the policy applied for,is a condition precedent to coverage.
Part Vi-Renewal Statement
This Renewal application is a supplement to the application(s)attached to the currer:t policy and said applications
together with this Renewal application constitute the complete application which shall be the basis of the contract
should a policy be issued and will be attached to and become part of the policy.
Part Vil-Required Information
Attached and made a part of this application by reference are copies of:(If this is a renewal of a Coregis Policy forward
item (B)only.)
A.Charter or By-Laws.
B.Last two Annual Reports,CPA Audits or comparable financial statements.
The signing of this application does not bind the undersigned to purchase the insurance,nor does review of the
application bind the insurance company to issue a policy.It is agreed that this application shall be the basis of the
contract should a policy be issued.AofferSubmittedby:Signed y
Agent Must Be Signeded By Chairpasorthe Board,President,or Executive iepator
Signed:Date:Title _Chairman
Coregis Agent?___.Yes ___No Date L,th*Li(ZA IvaSurplusLinesLicenseNumber.
Expiration Date
Please return to your nearest Coregis location.
181 W.Madision 110 William Street
Chicago,Illinois 60602 New York,New York
(312)849-5000 10038-3901
(212)306-4900
NOTICE TO NEW YORK RESIDENTS
WARNING:Any person who knowingly and with intent to defraud any insurance company or other person files an
application for insurance containing any false information,or conceals for the purpose of misleading information concerning
any fact material thereto commits a fraudulent insurance act,which is a crime.
CFM 92.1.0197 (5/92)PAGE 3 OF 4
Supplemental Information
CFM 92.1.0197 (5/92)-PAGE 4 OF 4
Nag
@M =ENERGY AUTHORITY
.C4 ALASKA INDUSTRIAL DEVELOPMENT
}'kk AND EXPORT AUTHORITY «=>ALASKA
480 WEST TUDOR ANCHORAGE,ALASKA 99503 907 /561-8050 FAX 907 {561-8998
November 1,1994
Norman L.Story
BPMC Chairman
Homer Electric Association,Inc.
3977 Lake Street
Homer,Alaska 99603
Subject:Insurance Subcommittee Recommendations
Bradley Lake Hydroelectric Project
Dear Norm:
As requested by the BPMC,the Insurance Subcommittee met to discuss
Directors'and Officers'liability insurance,Operator Liability for Negligent Acts
and the Independant Insurance Review,and to provide recommendations back
to the BPMC.Draft minutes are attached.Our recommendations follow.
1._DIRECTORS'AND OFFICERS'LIABILITY INSURANCE
The committee determined the exception for government agencies as shown in
the Four Dam Pool Policy exclusions was not satisfactory.An alternative carrier
may provide Directors'and Officers'coverage with less strenuous exclusions
and a lower premium.An application is enclosed for you to sign and return.
Unless the members of the PMC wish to explore extended coverage under each
member organization's existing policies for their representatives to the BPMC,
the committee recommends the following and will proceed unless advised
otherwise:
Recommendation 1:
Apply to COREGIS for Directors'and Officers'liability coverage.If the
exclusions are less restrictive than the existing proposal,and the premium is
comparable price or less,place the coverage.
Norman L.Story
November 1,1994
Page 2
Alternative A:
In the event the COREGIS coverage is not available,exclusions are not
satisfactory or prices are not competive,seek modification of the governmental
exclusion to apply to only those governmental entities directly involved with the
project,and place the coverage if the modification is acceptable.
2.OPERATOR LIABILITY FOR NEGLIGENT ACTS
A commercially reasonable alternative is not available to provide insurance
coverage for the negligent acts of an operator up to the limits of the project self
insured retentions.HEA pays a modest fee for extending its general liability
coverage to the Bradley Project (approximately $14,500 annually).The
alternative is for the PMC to provide general liability coverage for the project,
estimated at $30,000 to $50,000 plus the cost of the additional coverage
necessary to insure the negligent acts of the operator.That alternative would
likley cost the project as much as the coverage proposed by ARECA.The
insurance and risk management professionals in attendance deemed the
potential risk of loss to be minimal,especially considering the premium costs.
Since HEA is reimbursed for its costs,without any additional return to
compensate for risks to HEA,the committee recommends the following:
Recommendation 2:
The BPMC self insure losses,including losses for operator negligence,up to the
self insured retention limits and limit HEA's liability for any loss obligations to its
prorata share as a purchaser.
3.INSURANCE REVIEW
The committee's consensus,after comment by the insurance professionals,was
the existing coverages and the self insured retentions are appropriate.Except
for items below listed items no further action is recommended.
Debt Service Coverage
Debt service coverage may be available now that the project has an operating
history.During next year's placement of property and boiler and machinery
policies,quotations will be solicited.No action is required by the BPMC.
Professional Liability
The insurers believe that most,if not all losses resulting from damage arising
due to negligent design and errors and omissions by an engineer or individual
performing professional services,will not be excluded from coverage under our
existing policies.Two unlikely exceptions,are general liability losses to third
parties and personal property losses;however,the insurance professionals do
not believe the insurance carriers would prevail on a denial of payment for those
Norman L.Story
November 1,1994
Page 3
losses.Recent changes in the law,require engineers to have professional
liability coverage.Due to those changes in the law and the limited loss potential,
the committee's recommendation is as follows:
Recommendation 3:
HEA retains the responsibility for such design changes and either perform the
services in-house or with insured consultants.
Self Insured Loss Funding
At this time there are no provisions in the budget or reserves to fund the self
insured retentions in the event of loss.Such funding would have to come from
budget surpluses,other reserve funds or direct purchaser contributions.
Recommendation 4:
Establish a self insurance reserve fund in the amount of the property insurance
self insured retention,$1,000,000.The reserve could be funded from annual
budget surpluses until the retention amount is fully funded.
Alternative B:
Obtain a $1,000,000 or less,letter of credit to provide immediate funding to
cover the self insured retention.Annual cost of such a line of credit is
approximately $1,800.00.This could also be used as an interim measure until a
self insurance reserve is fully funded.
Sincerely;
f Me.
Daniel W.Beardsley
Enclosures
CC:BPMC Members
Insurance Subcommittee Members
DRAFT
BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE
INSURANCE SUBCOMMITTEE MEETING MINUTES
October 14,1994
The Bradley Lake Insurance Subcommittee meeting convened at 9:00 A.M.on
October 14,1994,at 480 West Tudor Road.
In attendance at the meeting were:
Dan Beardsley,Committee Chairman
Ron Saxton,Ater,Wynne,Hewitt,Dodson &Skerritt
Robert Hansen,Golden Valley Electric Association
Mike Cunningham,Chugach Electric Association
Tonya Lamothe,ARECA
Dave Hutchens,ARECA
Angela Terry,Willis Corroon
Kirk Leadbetter,Willis Corroon
Brad Thompson,Risk Management,State of Alaska
Via Telephone:
Rick Eckert,Homer Electric Association
Three principal issues were discussed:Directors'and Officers'Liability
Insurance,Operator Liability for Negligent Acts and Insurance Review.
DIRECTORS'AND OFFICERS'LIABILITY INSURANCE
The committee was tasked to review the copy of the Four Dam Pool Directors'
and Officers'liability policy,address the exclusions in that policy and place the
coverage for $1,000,000 with a $75,000 deductible if appropriate.
Three specific exclusions were questioned:exclusion of claims brought by
federal,state and local governments,claims by AEA against the PMC,and
claims relating to errors and omissions of the officers and directors performing
professional services.
Insurance Subcommit Minutes
October 14,1994
Page 2
Angela Terry indicated the exclusion for government claims related to the
insurers perception of the organizational structure of the PMC.It is an atypical
entity from the underwriters position,and due to the diverse participants the
underwriters wanted to exclude claims from the federal,state and local
governments or agencies involved in the project.According to Ms.Terry the
exclusion is broadly drafted and can likely be more narrowly drawn to exclude
only those claims made by governmental entities directly involved in the project.
As to the AEA exclusion,that one applies because AEA is a member of the
PMC,as well as the owner of the project.
The E&O relates exclusively to professional services,and does not apply to the
actions of the directors and officers in their management capacity on the PMC.
Kirk Leadbetter indicated there may be alternative coverage available through
COREGIS that may be less expensive with less exclusions.Due to the fact the
PMC represents local government entities and private non-profit corporation,
there is question whether the PMC will qualify for the COREGIS coverage
without an IRS letter ruling that the PMC is a tax exempt entity.The Four Dam
Pool obtained such a ruling but it took several years.Mr.Leadbetter believesthatthecoveragecanbeobtainedwithoutsuchaletterruling.They have
recently obtained COREGIS coverage for a G&T facing similar issues.
Mr.Hutchens commented that the individual utilities could likely get extended
coverage under their existing policies for their PMC representative.Mr.Saxton's
sense of the PMC directive was that the Purchasers have analyzed their
coverages and believe that the D&O coverage by the PMC is the approach to
take at this time.
On behalf of the committee,Dan Beardsley will take the following actions:
1.Confirm through Mr.Story that the PMC directive does not contemplate
the individual utilities reexamining their potential to extend their D&O
policies.
2.Make an application to COREGIS for D&O coverage.
3.If the D&O coverage from COREGIS is available,less expensive and
contains less exclusions,place the recommended amounts of coverage
with COREGIS;otherwise,modify the government exclusion and place
_coverage under the previously quoted program.
Insurance Subcommi'Minutes
October 14,1994
Page 3
OPERATOR LIABILITY FOR NEGLIGENT ACTS
Presently the project has property insurance coverage with a $1,000,000 self
insured retention and Boiler and Machinery Insurance with self insured
retentions ranging between $25,000 to $250,000.Those policies cover against
loss from all perils,which would preclude HEA,as a named insured,from liability
to the insurer.The specific issue is the liability of HEA to the PMC for the
amounts of the self insured retention (SIR)in the event of operator negligence.
On the PMC/AEA side,the operator should have liability for its negligent acts to
reinforce prudent operational practices.Alternatively HEA is operating the
project at cost and is not receiving a compensation in exchange for assumption
of risk.
The possible alternatives identified were:
Operator indemnifies PMC and AEA
PMC and AEA indemnify the Operator
PMC insures the Operator
Operator insures the PMC and AEA
Operator and PMC split the costs of insurance
Leave the issue until an occurrence raises the issue.
Several options concerning the insurance question were discussed.
One was to decrease the SIRs.This idea was deemed unlikely because the
insurance market will likely not provide coverage for a SIR less than $1,000,000.
(Subsequent discussion indicated that the $1,000,000 SIR may not be available
in future years.)
An exclusion to Homer's property policy to cover for operator negligence cannot
be obtained for less than the quotes indicated by ARECA ($66,000).The
alternative of the PMC obtaining a general liability policy with third party
coverage that would cover operator negligence (similar to the Four Dam Pool
coverage)does not appear to be economically feasible.Under HEA's present
general liability policy,the additional cost to include the Bradley Project is
minimal.Placing the general liability under the PMC with HEA as a named
insured will likely cost in the range of $30,000 to $50,000,plus the additional
cost of the third party coverage.
In the opinion of the insurance and risk management professionals in
attendance,the risk of such losses is minimal.From a cost benefit standpoint
their recommendation it to self insure such losses.
Insurance Subcommit Minutes
October 14,1994
Page 4
As it stands now,if there is a loss,any loss would be covered by the PMC.The
PMC then has the choice to absorb the loss,which amounts to each participant
being responsible for its prorata share,or seek reimbursement from HEA.
The Insurance subcommittee approved a recommendation for the PMC to self
insure losses up to the amount of the SIR,including those losses resulting from
Operator negligence.The committee does not recommend obtaining insurance
to cover losses due to Operator's negligence because of the additional cost to
obtain the coverage.Due to the fact HEA is not getting a return for operating the
project,the committee recommends that the extent of HEA's liability be limited to
its prorata share of any self insured losses.
INSURANCE REVIEW
Risk Management provided an insurance assessment for the Bond Trustee,
therefore the independent outside insurance review was eliminated.The
committee discussed the sufficiency of the existing coverages,the amounts of
self insured retentions and funding of the self insured risks.
Existing Coverages
With respect to existing coverages,debt service coverage,professional liability
and environmental coverages were considered.
Debt Service Coverage.Debt service coverage was not previously included
under the property policy due to the lack of operation history for Bradley.With
the change in AEA and the transfer of operation to HEA,a request for debt
service coverage was not added to the FY 95 insurance placement.In the FY
96 placement,a request for debt service coverage will be included.The
premium costs and policy exclusions should be review before placement of the
coverage.
Professional Liability.A concern has been the perceived lack of coverage for
losses arising a the result of changes in the operational processes that require
plans sealed by an engineer.Under current law,such changes require the
signature and seal of an engineer.Recent changes in the law mandate
professional liability insurance for engineers.The engineer performing such
work is personally liable.
When questioned about exclusions from coverage due to errors and omissions
by individuals performing engineering services,the opinion of the Insurance
professionals was that most,if not all,losses would be covered.Under our
existing policies there are two areas which may not be covered.Those possible
exceptions are general liability losses sustained by third parties and possible
Insurance Subcommit Minutes
October 14,1994
Page 5
personal property exclusions;although,the insurance professionals doubted
that the insurance carriers would prevail if they denied such claims.
With the limited potential liability to HEA,the committee recommends that HEA
retain the responsibility for performing such changes.HEA can decide to
perform the services in-house,obtain professional liability insurance for its staff,
or contract with insured consultants.
Environmental.Although the committee discussed the possible need for
environmental loss insurance,the consensus of all parties was that the previous
actions to contractually reduce the risks of contamination,and the construction
of environmentally safe structures,are the best approaches to limit risk.The
expense of commercially available policies and the typical exclusions are cost
prohibitive in relation to the risk of self insurance.Except for a continued
awareness in reducing risk through contract efforts,no further action was
recommended.
Remaining Coverages.Dave Hutchens of ARECA and Brad Thompson of Risk
Management concurred that the existing types and levels of the remaining
coverages are adequate for the risks facing the project.
Self Insured Retentions
In the opinion of Angela Terry,the $1,000,000 SIR for the property insurance is
probably the lowest SIR that the insurance market will recognize.She
anticipates that the market place may actually force the project to increase that
SIR amount as a condition of placing insurance in the future.The potential
premium savings for an increase in the SIR are minimal.For the first
$10,000,000 increment of coverage ($9,000,000 over our SIR of $1,000,000)the
current premium is $76,000.Unless the premium dramatically increases in the
near future,an increase in our SIR to $10,000,000 would only save $76,000.
The committee does not recommend increasing the SIR.
At present there is not a reserve fund for self insured losses or a budget line
item.In the event of a property or boiler and machinery loss,funding would
have to come from budget surpluses,other reserve funds or direct contributions
by the purchasing utilities.The alternatives range from establishing a reserve
fund,obtaining a letter of credit for the SIR amount,pooling all reserves,
assessing the purchasers at the time of a loss,or a combination of the above.
The committee recommends that a $1,000,000 self insurance reserve be
established.We further recommend that the reserve be funded from annual
budget surpluses until such time as the reserve reaches the amount of the
maximum SIR.
_COREGIS licationINSURANCEApplica
ORGANIZATIONS
APPLICATION FOR
NONPROFIT ORGANIZATION LIABILITY INSURANCE
(THIS IS AN APPLICATION FOR A CLAIMS-MADE POLICY)
Part |-Background Information
1.Name of Organization___Bradley Lake Project Management Committee
Address_c/o Alaska Energy Authority,480 West Tudor Road,Anchorage,AK 99503
(Number)(Street)(City)(State)(Zip)
2.What is Organization's legal structure?_Committee of Purchaser Utility RepresentativesDateorganized:12/8/87 __Date operations began:_9/1/91 Purpose of Organization:(Month/Year)(Month/Year)
Manages the operation of the Bradley Lake Hydroelectric Project.
State in which incorporated:__Alaska
3.Scope of operations:Local _State
If Organization is regional,list states or areas served:
Regional National International.
4.(a)List any affiliated organizations of which the organization owns more than 50%of the voting stock or appointsmorethan50%of the board of directors:__N/A
(b)Does the Organization have any subsidiaries operating for profit?(If Yes,please list):___No
5.Does the Organization have any stockholders or persons who profit from the operation except as salaried
employees?(if Yes,give details):No
6.(a)Does the Organization receive donations or contributions from the general public?No.
(b)Are contributions generally solicited?No
(c)Of the total contributions received,what is the net percentage
available for charitable purposes?0 %
(d)If the Organization receives government funding,what is the !
percentage of total revenues?Oo %
(e)Please provide the following information for the last three (3)years:
Year Total Revenue Total Expenditures *Current Fund Balance
19.92 ¢16,364,217 ¢16,258,588 $_175,163,17419_93 -$17,448,722 $20,160,593 $160,368,243
19_94 $16,661,117 $21,174,175 $155,855,744
7.Total number of individuals employed by the Organization?_None --All staff work is provided bycontractlabor.
8.Are any of the Directors,Officers,Trustees,or Employees indebted to the Organization?(If Yes,give details):
No :
*-Includes depreciation expense..
Part Il-Association Details
If the Organization is an Association,please complete this section.
9.Number of chapters:Number of members:
10.Publications:.Magazines ____.Newsletters _Journals
Periodicals ___Technical Manuals
(If any of the above are Yes,please attach a copy of each.)
CFM 92.1.0197 (5/92)-
.
PAGE 1 OF 4
11.(a)Is the Association involved in product testing/certification?Yes__.__No____
(b)Does the Association set professional standards or certify its members?Yes__.No ___
(c)Doesthe Association or its Directors,Officers,Trustees,or Employees act as an Administrator of any employee
benefit welfare plans under ERISA,or in any other fiduciary capacity for any other employee benefit welfare
plans?Yes_...-s-No____
If Yes to any of the above,please provide details:
Part tll-Governmental Information
12.Within the last three (3)years,has the Organization received any inquiry,complaint or notice of hearing from anystateorfederalregulatoryauthorityoragencyorcongressionalorlegislativecommittee?Yes__.._No_X__
(If Yes,give details):
13.(a}Has the Organization filed a Tax Form in the last three years?Yes No__X_
(b)If Yes,have the returns been accepted as filed?
Part iV-Insurance Coverage Information
14.(a)Directors and Officers Liability Insurance or Non-Profit Organization Liability Insurance carried during the past
three years,including expiring policy,if applicable:
Insurer Limit Retention Premium Exp.Date
NONE
(b)Has any same or similar insurance on behalf of the Organization been declined,cancelled or non-renewed?
Yes...No_X_.If Yes,please explain:
(c)Has the carrier(s)of any same or similar insurance ever been given notice of claim or possible claim by the
organization?Yes No_X If Yes,please explain:
(d)Doesthe Organization currently carryGeneralLiabilityinsurance?Yes_...No_X IfYes,pleasegive
carrier and expiration date:
(e)The officer of the Organization designated to receive any and all notices from the Insurer or the authorized
representative concerning this insurance is:___DantelW.BeardsleyAlaskaEnergyAuthority,480 West Tudor Road,Anchorage,AK 99503
Part V-Claim Information
If this is a renewal of a Crum &Forster Policy,skip to Part VI unless higher limits are desired.
15.Hasanyclaim been made,orisanynowpending,against the Organization,orany person proposed forthisinsurance
in the capacity of either Director,Officer,Trustee or Employee?(If Yes,give details):__No
16.Hasthe Organization and/orits Directors,Officers,Trustees or Employees been involvedin or have any knowledge ofpendingFederal,StateorlocalactionsorproceedingsagainsttheOrganizationand/oritsDirectors,Officers,Trustees
or Employees?(If Yes,give details):__No
17.Is any person proposed for this insurance cognizant of any fact,circumstance or situation which said personhasreasontosupposemightaffordvalidgroundforanyfutureclaimagainstsaidpersonand/or the Organization?(If Yes,give details):__No
If such facts,circumstances or situations exist,any claim or action arising therefrom is excluded from the proposed
coverage.
CFM 92.1.0197 (5/92)PAGE 2 OF 4
2
18.
19
20.
The undersigned being authorized by,acting on behalf of,the applicant and 9ersons or concerns seeking
insurance,has read and understands this application,and declares all statements set forth herein are true,complete
and accurate.The undersigned further declares and represents that any occurrence or event taking place prior to the
inception of the policy applied for,which may render inaccurate,untrue,or incomplete any statement made herein will
immediately be reported in writing to the Insurer.The undersigned acknowledges and agrees that the submission and
the Insurer's receipt of such report,prior to the inception of the policy applied for,is a condition precedent to coverage.
Part ViI-Renewal Statement
This Renewal application is a supplement to the application(s)attached to the current policy and said applications
together with this Renewal application constitute the complete application which shall be the basis of the contract
should a policy be issued and will be attached to and become part of the policy.
Part Vil-Required Information
Attached and made a part of this application by reference are copies of:(If this is a renewal of a Coregis Policy forward
item (B)only.)
A.Charter or By-Laws.
B.Last two Annual Reports,CPA Audits or comparable financial statements.
The signing of this application does not bind the undersigned to purchase the insurance,nor does review of the
application bind the insurance company to issue a policy.It is agreed that this application shall be the basis of the
contract should a policy be issued.
Submitted by:Signed
Agent Must Be Signed By Chairman of The Board,
President,or Executive Director
Signed:Date:Title _Chairman
Coregis Agent?Yes No Date
Surplus Lines License Number.
Expiration Date
Please return to your nearest Coregis location.
181 W.Madision 110 William Street
Chicago,Illinois 60602 New York,New York
(312)849-5000 10038-3901
(212)306-4900
NOTICE TO NEW_YORK RESIDENTS
WARNING:Any person who knowingly and with intent to defraud any insurance company or other person files an
application for insurance containing any false information,or conceals for the purpose of misleading information concerning
any fact material thereto commits a fraudulent insurance act,which is a crime.
CFM 92.1.0197 (5/92)PAGE 3 OF 4
Supplemental Information
CFM 92.1.0197 (5/92)PAGE 4 OF 4
August 4,1994
«LastName»
«Company»
«Address2»
«City»«State»«PostalCode»
Willis Corroon has provided quotes for Director and Officer Liability Coverage for the
Bradley Lake PMC.The quotes are as follows:
Limits of Liability Retention Each Loss Premium
(Includes Defense Cost)(Indemnifiable Claims)(Annual)
$1,000,000 $50,000 $23,300
1,000,000 75,000 21,000
1,000,000 100,000 18,750
2,000,000 50,000 35,000
2,000,000 75,000 31,500
$2,000,000 $100,000 $28,500
The Four Dam Pool has Directors and Officers coverage of $1,000,000 with a $75,000
retention.That policy premium is $18,000.A copy of that policy is enclosed for your
review.Please review this package prior to the next PMC meeting.We request that
the PMC to advise AEA at the next meeting as to whether Willis Corroon should place
this coverage if the PMC does not want D&O coverage.
Should you have any questions,please direct them to Dan Beardsley.
Sincerely,
SIGNED 8/4/94
Dennis V.McCrohan
Deputy Director,Energy
DWB:bjf
h:all\beardsle\dword\blins\blins028
Enclosure
LastName Company Address1 Address2 City State PostalCode
Dave Calvert City of Seward 5th and Adams P.O.Box 167 Seward,Alaska |99664
Eugene N.Bjornstad Chugach Electric Association 5601 Minnesota Drive |P.O.Box 196300 Anchorage,|Alaska_|99519-6300
Michael Kelly Golden Valley Electric Association 758 Illinois P.O.Box 71249 Fairbanks,Alaska {|99707-1249
Jim Woodcock Matanuska Electric Association 163 Industrial Way P.O.Box 2929 Palmer,Alaska |99645-2929
Norman L.Story Homer Electric Association 3977 Lake Street Homer,Alaska |99603
Tom Stahr Anchorage Municipal Light &Power 1200 E.First Avenue Anchorage,|Alaska |99501
Vince Mottola Fairbanks Municipal Utility Systems P.O,Box 72215 Fairbanks,Alaska_|99707
Ron Saxton Ater Wynne Hewitt Dodson &222 S.W.Columbia Suite |Portland,Oregon |97201-6618Skerritt1800
Robert L.Hufman AEG&T Corporation 1018 Galena Street Fairbanks,Alaska |99709
Homer Electric Association,Inc.
CORPORATE OFFICE Central Peninsula Service Center
3977 Lake Street paeieasHomer,Alaska 99603-7680 }ch F240 |||!|Phone (907)235-8167 Kenai,Alaska 99611-5280
Phin!
(
FAX (907)235-3313 (907)283-5831odA¥83-7 329554
Alaska Industrial Develogomert
and Export Authority
May 16,1994
Mr.Dan Beardsley
Alaska Industrial Development
and Export Authority
480 West Tudor
Anchorage,AK 99503-6690
Dear Dan:
I have just recently been brought up to speed on your efforts to
create a committee to select a chairman for the insurance review of
the Bradley Lake Project.As BPMC chairman,I want to offer some
guidance on how to proceed.
I understand the bond resolution for an independent review of the
insurance coverage.I want to be sure that this requirement is
implemented consistent with the Power Sales Agreement arrangement
and role of the BPMC.The BPMC is responsible for arranging for
Project Insurance,and has a standing Insurance Committee for that
purpose.Any work relative to assessing our insurance needs,or
arranging for insurance,should be conducted through that committee
as a whole.In addition,our budget committee needs to be involved
in the budget issues associated with any decision to hire
consultants or place insurance.
I think it would work best if your selection committee acted more
as a screening committee that reported back to the Bradley
Insurance Committee.The smaller group will let you move forward
quickly,but should not become a substitute for the role of the
whole committee in approving the scope of work and selection of
contractor.I also think it is important that the consultant
report to the existing Bradley Insurance Committee as a whole.
Dan Beardsley
May 16,1994
Page 2
I appreciate your initiative to get this process going and look
forward to you working with the Insurance Committee to address
these issues.
Sincerely,
LyN.L.Story
Chairman of Bradley PMC
cc:Ron Saxton,Ater Wynne Hewitt Dodson &Skerritt
Mike Cunningham,Chugach ElectricRobertHansen,GVEA
Rick Eckert,HEA
Alaska Energy Authority
April 20,1994
David L.Highers
General Manager
Chugach Electric Association,Inc.
P.O.Box 196300
Anchorage,Alaska 99519-6300
Subject:Application for Quote
BPMC Directors and Officers
Liability Insurance
Dear Dave:
Enclosed you will find a "Not-for-Profit Organization /Directors,Officers and
Trustees Liability Policy Application"prepared for requesting a quote from Willis
and Corroon for Director's and Officer's Liability coverage for the Bradley Lake
PMC.Please sign the application in the two signature blocks on page 5 and
return it to Dan Beardsley.
Once the quotation is received,that information will be provided to the Board for
-a decision to obtain coverage.
Very truly yours;
I We CA
Dennis V.McCrohan
Deputy Director,Energy
Enclosure
vee
ALA American International Companies
Name of Insurance Company to which Application is made
(herein called the Insurer)
Directors,Officers and Trustees Insurance and
Not-for-Profit Organization Reimbursement Policy Application
or
Not-for-Profit Organization/Directors,Officers and TrusteesLiabilityPolicyApplication
NOTICE:THE POLICY PROVIDES THAT THE LIMIT OF LIABILITY AVAILABLE TO PAY JUDGMENTS
OR SETTLEMENTS SHALL BE REDUCED BY AMOUNTS INCURRED FOR LEGAL DEFENSE.FURTHER
NOTE THAT AMOUNTS INCURRED FOR LEGAL DEFENSE SHALL BE APPLIED AGAINST THE
RETENTION AMOUNT.IF A POLICY IS ISSUED,THE APPLICATION WILL BE ATTACHED TO AND
BECOME A PART OF THE POLICY,THEREFORE IT IS NECESSARY THAT ALL QUESTIONS BE
ANSWERED ACCURATELY AND COMPLETELY.
IF A POLICY IS ISSUED,IT WILL BE ON A CLAIMS-MADE BASIS.
1.Applicant
(a)Name of Organization:_Bradley Lake Project Management Committee
(b}Jurisdiction of Incorporation or Charter:_Alaska
(c)Date of Incorporation:_December8,1987 (Date formed)
(d)Address:c/o Alaska Energy Authority
480 West Tudor Road,Anchorage,AK 99503
{e)Check one of the following categories that best describes your Organization:
-_-Benefit Trust Health System Nursing/Retirement Home
--_-Cemetery Company --Historical Society Religious Organization
___Community Health Center --_-HMO/PPO Research/Development Inst
-_-..Condominium/Cooperative ---Hospital ---Social/Recreational Club
Organized under Act of Congress Industrial/Agric.Co-Op -_-Social Welfare OrganizationFoundation--- Labor Union Trade Association
Fraternal Society/Association Museum University/School
Golf/Country Club
,
Mutual Insurance Association
X_Other___Industrial/Electrical Generation andTransmission
(f)Briefly describe the functions,purpose and general operations of the Organization.
(1)
51824 (5/91)
(g)Primary SIC code(s)-_1¢
(h)Organization has been continually operating since _9/1/91
2.(a)Amount of Insurance requested $1,000,000
(b)Self-insured retention desired (each loss)$75,000
3.(a)Complete list of all Directors and/or Trustees of the Organization named in 1(a)above by name and
affiliation with other organizations.(If included as an attachment herein,check here _X_.)
(b)Complete list of all Officers of the Organization named in 1(a)above by name and affiliation with otherorganizations.(If included as an attachment herein,check here __X_.)
(c)Are the Directors or Trustees elected or appointed and by whom?
Elected Ss Appointed X
By Each Utility Represented
4.(a)Is the Organization a Not-for-Profit Organization qualified under the U.S.internal Revenue Code Section501(c)?Yes_____No _X___.If no,please attach an explanation.
(b)Has the Organization's tax exempt status ever been terminated,suspended or challenged or is any suchactionnowthreatened?Yes___.No _X_.If yes,please attach an explanation.
5.List of all direct and indirect Subsidiary corporations,associations and fraternities
Business or Type Percentage of Date Acquired Non-Profit
Name of Operation Ownership or Created or For-Profit
See attached listing
Coverage to include all Subsidiaries?Yes No -X_Include complete list of Directors,Officers and
Trustees of each Subsidiary for which coverage is requested.(If included as an attachment herein,check here -__.)
6.Please answer each of the following and attach details of any "yes”answers.
(a)Does the Organization provide any referral service,or computer service?
Yes No _X
(b)Does the Organization promote,sponsor or provide any form of insurance?
Yes No _X
(2)
124 (5/91)
10.
11.
51824 (5/91)
(c)Does the Organizationown,-_iage,maintain or controlacaptiveinsurance -_ipany?Yes No _xX
(d)Is the Organization engaged in any form of research,development,experimentation or testing?
'Yes No _X
(e)Does the Organization act as or participate in a peer review group or committee for assessing qualifications
and performance of others or the quality of products manufactured,sold,handled,or distributed?
Yes _X No (Only as to the operation and maintenance activities of
the project.)
(f)Does the Organization take any disciplinary action or recommend disciplinary action as a result of peer
review group activities?Yes No _X
(g)Does the Organization develop standards used to evaluate the quality of goods or services?
Yes __X No
(h)Does the Organization publish any magazines,periodicals,newsletters or bulletins?
Yes _X No .Ifyes,please attach a sample ofeach.(Annual Report)
(i)Does the Organization publish any books or technical manuals?Yes -X No
(Only for internal use)
List type and number of professional staff.
The committee does not employ staff.All staff work is provided by contract
_labor.
Is the Organization related to or affiliated with any other organization not listed in question 1(a)?Yes
No _X__.If yes,please attach an explanation of relationship.
Has the Organization merged with any other organization within the last 10 years?Yes No _X
If yes,please list dates and names of such organizations.
There has not been nor is there now pending any claim(s)against any person proposed for insurance in his or
her capacity of either Director of Officer of the named Organization or any of its Subsidiaries except as follows:
(Attach complete details.If no such claims,check here "none”_X_or "none”except for see
attached details.)
No Director or Officer or Trustee has knowledge or information of any act,error or omission which might give
rise to a claim under the proposed policy except as follows:(Attach complete details./f they have no such
knowledge or information,check here "none”X_or "none”except for see attached details.)
(3)
12._Has the Organization,any c.._Subsidiaries or any Director,Officer or Trt
(a)Been involved in any copyright or patent litigation?Yes No _X
(b)Been chargedin any civil or criminal action or administrative proceeding with a violation of any federal orstateantitrustorfairtradelaw?Yes No _.xX_
(c)Been chargedin any civil or criminal action or administrative proceeding with a violation of any federal or
state securities law or regulation?Yes No _X
(d)Been involved in any representative actions or class actions?Yes No _X
(if any of the above are answered yes,attach full details.)
ms
K1N9A (K/G1\
If is agreed that with respect to Question 10,11 and 12 above,that if such knowledge,information or involvement
exists,any claim or action arising therefrom is excluded from the proposed coverage.
13.Previous Directors and Officers Insurance:
(a)Name of Insurance Company
(b)Limit of Liability
(c)Self-insured retention
(d)Policy Expiration Date
(e)Premium (indicate one year or other)
(f)Loss experience (Attach full details.If no losses,check here:_X__)
14.Name of Risk Manager (or equivalent position}and number of years in current position:
Brad Thompson,Director,Division of Risk Management,State of Alaska
Division Director since July 1,1993.State of Alaska,Alaska Energy
Authority is owner of project managed by BPMC.
15._Please attach copies of each of the following:
(a)Constitution &By-Laws
(b)List of Directors,Officers and Trustees(c)Latest Annual Report with Audited Financials,(if audited financials are not available please submit aTreasurer's Warranty Letter guaranteeing the Organization's financials).
THE UNDERSIGNED AUTHORIZED OFFICER OF THE APPLICANT DECLARES THAT THE STATEMENTS SET
FORTH HEREIN ARE TRUE.THE UNDERSIGNED AUTHORIZED OFFICER AGREES THAT IF THE INFORMA-
TION SUPPLIED ON THIS APPLICATION CHANGES BETWEEN THE DATE OF THIS APPLICATION AND THE
EFFECTIVE DATE OF THE INSURANCE,HE/SHE (UNDERSIGNED)WILL,INORDER FOR THE INFORMATION _TO BE ACCURATE ON THE EFFECTIVE DATE OF THE INSURANCE,IMMEDIATELY NOTIFY THE INSURER OF .
SUCH CHANGES,AND THE INSURER MAY WITHDRAW OR MODIFY ANY OUTSTANDING QUOTATIONS AND/
OR AUTHORIZATIONS OR AGREEMENTS TO BIND THE INSURANCE.
SIGNING OF THIS APPLICATION DOES NOT BIND THE APPLICANT OR THE INSURER TO COMPLETE THE
INSURANCE,BUT IT IS AGREED THAT THIS APPLICATION SHALL BE THE BASIS OF THE CONTRACT
SHOULD A POLICY BE ISSUED,AND IT WILL BE ATTACHED TO AND BECOME A PART OF THE POLICY.
ALL WRITTEN STATEMENTS AND MATERIALS FURNISHED TO THE INSURER IN CONJUNCTION WITH THIS
APPLICATION ARE HEREBY INCORPORATED BY REFERENCE INTO THIS APPLICATION AND MADE A
PART HEREOF.
(4)
NOTICE TO NEW YORK AND OHI -.2PLICANTS:ANY PERSON WHO KNOW __LY AND WITH INTENT TODEFRAUDANYINSURANCECOMPANYOROTHERPERSONFILESANAPPLICATIONFORINSURANCEOR
STATEMENT OF CLAIM CONTAINING ANY MATERIALLY FALSE INFORMATION,OR CONCEALS FOR THE
PURPOSE OF MISLEADING,INFORMATION CONCERNING ANY FACT MATERIAL THERETO,COMMITS A
FRAUDULENT INSURANCE ACT,WHICH IS A CRIME.
Signed
(Applicant)
Date
Title Chairman(must be signed by Chairperson of the Board or President}Corporate Seal
Attest
Broker
Address
Please read the following statement carefully and sign below where indicated.If a policy is issued,this signed
statement will be attached to the policy.
The undersigned authorized officer of the Applicant acknowledges that he/she is aware that the limit of liability
contained in this policy shall be reduced,and may be completely exhausted,by the costs of legal defense or for
the amount of any judgment or settlement to the extent that such exceeds the limit of liability of this policy.
The undersigned authorized officer of the Applicant hereby further acknowledges that he/she is aware that legal
defense costs that are incurred shall be applied against the retention amount.
»Signed
(Applicant)
Date
Title___Chairman
(must be signed by Chairperson of the Board or President}
(5)
Bradley Lake Hydroelectric Project Management Committee
List of Representatives
Representative
Dennis V.McCrohan
Secretary
Tom Stahr
Dave Calvert
David L.Highers
Chairman
Mike Kelly
Alternate
Stan Sieczkowski
Hank Nikkels
Eugene N.Bjornstad
Bradley Evans
Utility
Alaska Energy Authority
480 West Tudor Road
Anchorage,Alaska 99503
Phone:561-8050
Fax:561-8998
Anchorage Municipal Light
&Power
P.O.Box 196094
Anchorage,Alaska 99519-6094
Phone:279-7671
Fax:263-5204
City of Seward
P.O.Box 167
Seward,Alaska 99664
Phone:224-3331
Fax:224-3248
Chugach Electric Association,
Inc.
P.O.Box 196300
Anchorage,Alaska 99519-6300
Phone:563-7494
Fax:562-0027
Golden Valley Electric
Association,Inc.
P.O.Box 71249
Fairbanks,Alaska 99707-1249
Phone:451-5633
Fax:451-0556
Bradley Lake Project Management Committee,Cont.
Page 2
Representative Alternate Utility
Norman L.Story Mike Yerkes Homer Electric Association,Inc.
Vice Chairman 3977 Lake Street
Homer,Alaska 99603
Phone:235-8551
Fax:235-3323
James Hall Matanuska Electric Association,
Inc.
P.O.Box 2929
Palmer,Alaska 99645
Phone:745-9211
Fax:745-9368
Ron Saxton Ater Wynne Hewitt Dodson &
Legal Counsel Skerritt
225 S.W.Columbia,Suite 1800
Portland,Oregon 97201-6618
Phone:(503)226-1191
Fax:(503)226-0079
Note:The Treasurer position is vacant as result of recent resignation of Matanuska
Electric Association General Manager.A new treasurer will be appointed at
the next BPMC meeting on April 29,1994.
ShadBN
- S @ ;
.ALASKA INDUSTRIAL DEVELOPMENTDgANDEXPORTAUTHORITY
480 WEST TUDOR *ANCHORAGE,ALASKA 99503-6690 *(907)561-8050 »FAX (907)561-8998
March 4,1994
Mr.David L.Highers
General Manager
Chugach Electric Association,Inc.
P.O.Box 196300
Anchorage,Alaska 99519-6300
Re:Bradley Lake Insurance Subcommittee
Aviation Insurance
Errors and Omissions Insurance
Dear Mr.Highers:
At our last meeting |agreed to obtain guidance from Mr.Brad Thompson of Risk
Management about two provisions in the Bradley Lake O&M Agreement.Those
provisions were Section 13(a)(2),errors and omissions,and Section 13(d)(1),
aircraft insurance.
Errors and Omissions Insurance
At our meeting there was a concern as to what actual coverages were
contemplated by Section 13(a)(2)since the operator would be providing
Directors'and Officers'liability coverage.According to Mr.Thompson,the intent
of the language is to assure full coverage of the project.The Directors and
Officers policy covers for errors and omissions made by management,and the
general liability covers for the actions of the staff operating the project.The
purpose of the language is to require the operator to provide professional liability
coverage for design and drafting activities,if such activities are taking place.
Typically the general liability policy has exclusionary wording as to coverage for
design and drafting performed by professionals.
Any such work provided by a subcontractor is covered by the requirements on
Page 2 of Exhibit C of the Agreement (a copy is attached).With respect to HEA
two questions must be addressed before we can go forward with this issue:(1)
will HEA perform such activities in operating and maintaining the project?,and
(2)if so,what coverage is necessary to avoid a gap in coverage?
Mr.David L.Highers
March 4,1994
Page Two
By this letter |am requesting HEA and Stan Sieczkowski to discuss this issue at
our meeting.
Aircraft Coverage
Section 13(d)(1)requires the operator to obtain special coverage approved by
AEA for aircraft with more than 5 seat capacity.The agreement does not set out
any specific limits.Mr.Thompson recommends coverage of $1,000,000 seat,or
in the case of the nine passenger Islander contemplated for use by HEA,
$9,000,000.HEA has determined that $15,000,000 coverage will require an
approximate $10,000 additional premium payment annually.The impact of the
additional coverage on charter rates needs to be identified as well.
By this letter |am requesting HEA to obtain quotes for the $1,000,000 per seat
coverage.
Please be prepared to discuss these issues at the subcommittee meeting on
Wednesday.,
Sincerely,
Daniel W.Beardsley
cc:Stan Sieczkowski
EXHIBIT "C"
INSURANCE
1.Contractor to purchase/maintain insurance for duration of agreement,plus
one year following final payment.
2.Specified limits are minimum levels.If the policy contains higher limits,
contracting agency is entitled to coverage of higher limits.
3.Certificate of insurance must be furnished to contracting agency.
e Must provide for 30-day prior notice to the contracting agency of
cancellation,reduction in liability.
e Failure to furnish constitutes material breach and grounds for termination.
Types of Insurance
Worker's Compensation:Contractor responsible for subcontractors.Coverage must .
include statutory coverage for states where employees are engaging in work and
employer's liability protection not less than $100,000 per person,$100,000 per
occurrence.Where applicable,coverage for all federal acts must also be included.
Comprehensive of Commercial General Liability Insurance:Covers all operations of
contractor providing insurance for bodily injury and property damage liability
including coverage for:
e Premises and Operations
e Products and Completed Operations
Broad Form Damage;and
Personal Liability
Comprehensive Policy:Minimum combined single limit of liability is $300,000 per
occurrence,$300,000 aggregate for bodily injury,property damage and personal
injury.
Commercial Policy:Minimum limits of liability are $300,000 per occurrence
(combined single limit)for bodily injury and property damage,$300,000 per
occurrence for personal injury,$300,000 aggregate for products-completed
operations,and $300,000 general aggregate.
Comprehensive Automobile Liability Insurance:Covers all owned,hired,and non-
owned vehicles with coverage limits not less than $100,000 per occurrence bodily
injury and $50,000 property damage.
Professional Liability Insurance:Covers all negligent errors,omissions which the
contractor,subcontractor or their employees make in the performance of the
agreement which results in financial loss to the contracting agency.
Minimum Limits:
.Combined Single Limit
Contract Amount Occurrence and Annual Aggregate
Under $100,000 $100,000
$100,000 to $499,999 ;$250,000
$500,000 to $999,999 $500,000
$1,000,000 and up NEGOTIABLE
Contracting agency reserves right to implement an Owner Controlled Insurance
Program with option of obtaining Professional Liability Insurance,contractor isn't
required to carry Professional Liability Insurance.
EXHIBIT C
Page 2 of 2
TRANSMISSION REPORTSOOOOOOOKAOROK
'AIDA (MAR B64 794 16:56 }
KOK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK 2K OK OK AK OK OK OK OK OK Ok OK OK OK OK OK OK Ok OK Ok Ok ok
DATE START REMOTE TERMINAL MODE TIME RESULTS TOTAL DEPT.
TIME IDENTIFICATION PAGES CODE
MAR 64 16:53 S626027 G35T 62739"OK 6S
KRKKKEKKKKRRRKKRKRKKHRKKEKKEX*KRKRKKKKKEKKKKKKKEKRKEKXXKXEKX*KOK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OOK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OOK OK OK OK OK OK OK
Py
x
*°27:ALASKA INDUSTRIAL DEVELOPMENT
'Dg AND EXPORT AUTHORITY
480 WEST TUDOR *ANCHORAGE,ALASKA 99503-6690 *(907)561-8050 »FAX (907)561-8998
March 4,1994
Mr.Mike Cunningham
Chugach Electric Association,Inc.
P.O.Box 196300
Anchorage,Alaska 99519-6300
Re:Bradley Lake Insurance Subcommittee
Aviation Insurance
Errors and Omissions Insurance
Dear Mr.Cunningham:
At our last meeting |agreed to obtain guidance from Mr.Brad Thompson of Risk
Management about two provisions in the Bradley Lake O&M Agreement.Those
provisions were Section 13(a)(2),errors and omissions,and Section 13(d)(1),
aircraft insurance.
Errors and Omissions Insurance
At our meeting there was a concern as to what actual coverages were
contemplated by Section 13(a)(2)since the operator would be providing
Directors'and Officers'liability coverage.According to Mr.Thompson,the intent
of the language is to assure full coverage of the project.The Directors and
Officers policy covers for errors and omissions made by management,and the
general liability covers for the actions of the staff operating the project.The
purpose of the language is to require the operator to provide professional liability
coverage for design and drafting activities,if such activities are taking place.
Typically the general liability policy has exclusionary wording as to coverage for
design and drafting performed by professionals.
Any such work provided by a subcontractor is covered by the requirements on
Page 2 of Exhibit C of the Agreement (a copy is attached).With respect to HEA
two questions must be addressed before we can go forward with this issue:(1)
will HEA perform such activities in operating and maintaining the project?,and
(2)if so,what coverage is necessary to avoid a gap in coverage?
By this letter |am requesting HEA and Stan Sieczkowski to discuss this issue at
our meeting.
Mr.Mike Cunningham
March 4,1994
Page Two
Aircraft Coverage
Section 13(d)(1)requires the operator to obtain special coverage approved by
AEA for aircraft with more than 5 seat capacity.The agreement does not set out
any specific limits.Mr.Thompson recommends coverage of $1,000,000 seat,or
in the case of the nine passenger Islander contemplated for use by HEA,
$9,000,000.HEA has determined that $15,000,000 coverage will require an
approximate $10,000 additional premium payment annually.The impact of the
additional coverage on charter rates needs to be identified as well.
By this letter |am requesting HEA to obtain quotes for the $1,000,000 per seat
coverage.
Please be prepared to discuss these issues at the subcommittee meeting on
Wednesday.
Sincerely,
Daniel W.Beardsley
cc:David L.Highers,BPMC Chairman
Stan Sieczkowski
TRANSMISSION REPORTBOOOSORIOOKOK
*AIDA (MAR @4 794 16:59 9
2K OK OOK OOK OOK OK OK OK OK OK OK OR OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK Ok
DATE START REMOTE TERMINAL MODE TIME RESULTS TOTAL DEPT.
TIME IDENTIFICATION PAGES CODE
MAR @4 16:56 2626827 G3ST 82°37"OK 5
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»
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x °"yx,ALASKA INDUSTRIAL DEVELOPMENT&AND EXPORT AUTHORITY
rl
480 WEST TUDOR *ANCHORAGE,ALASKA 99503-6690 «(907)561-8050 »FAX (907)561-8998
March 4,1994
Mr.Rick Eckert
Homer Electric Association,Inc.
3977 Lake Street
Homer,Alaska 99603
Re:Bradley Lake Insurance Subcommittee
Aviation Insurance
Errors and Omissions Insurance
Dear Mr.Eckert:
At our last meeting |agreed to obtain guidance from Mr.Brad Thompson of Risk
Management about two provisions in the Bradley Lake O&M Agreement.Those
provisions were Section 13(a)(2),errors and omissions,and Section 13(d)(1),
aircraft insurance.
Errors and Omissions Insurance
At our meeting there was a concern as to what actual coverages were
contemplated by Section 13(a)(2)since the operator would be providing
Directors'and Officers'liability coverage.According to Mr.Thompson,the intent
of the language is to assure full coverage of the project.The Directors and
Officers policy covers for errors and omissions made by management,and the
general liability covers for the actions of the staff operating the project.The
purpose of the language is to require the operator to provide professional liability
coverage for design and drafting activities,if such activities are taking place.
Typically the general liability policy has exclusionary wording as to coverage for
design and drafting performed by professionals.
Any such work provided by a subcontractor is covered by the requirements on
Page 2 of Exhibit C of the Agreement (a copy is attached).With respect to HEA
two questions must be addressed before we can go forward with this issue:(1)
will HEA perform such activities in operating and maintaining the project?,and
(2)if so,what coverage is necessary to avoid a gap in coverage?
Mr.Rick Eckert
March 4,1994
Page Two
By this letter |am requesting HEA and Stan Sieczkowski to discuss this issue at
our meeting.
Aircraft Coverage
Section 13(d)(1)requires the operator to obtain special coverage approved by
AEA for aircraft with more than 5 seat capacity.The agreement does not set out
any specific limits.Mr.Thompson recommends coverage of $1,000,000 seat,or
in the case of the nine passenger Islander contemplated for use by HEA,
$9,000,000.HEA has determined that $15,000,000 coverage will require an
approximate $10,000 additional premium payment annually.The impact of the
additional coverage on charter rates needs to be identified as well.
By this letter |am requesting HEA to obtain quotes for the $1,000,000 per seat
coverage.
Please be prepared to discuss these issues at the subcommittee meeting on
Wednesday.
Sincerely,
Daniel W.Beardsley
cc:David L.Highers,BPMC Chairman
-Stan Sieczkowski
TF ANSMISSION REPORTSECOOOOOOOOOOK
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a
.*e ékd..ALASKA INDUSTRIAL DEVELOPMENTx¥AND EXPORT AUTHORITY
i 2
480 WEST TUDOR *ANCHORAGE,ALASKA 99503-6690 «(907)561-8050 *FAX (907)561-8998
March 4,1994
Mr.Robert Hansen
Golden Valley Electric Association,Inc.
P.O.Box 71249
Fairbanks,Alaska 99707-1249
Re:Bradley Lake Insurance Subcommittee
Aviation Insurance
Errors and Omissions Insurance
Dear Mr.Hansen:
At our last meeting |agreed to obtain guidance from Mr.Brad Thompson of Risk
Management about two provisions in the Bradley Lake O&M Agreement.Those
provisions were Section 13(a)(2),errors and omissions,and Section 13(d)(1),
aircraft insurance.
Errors and Omissions Insurance
At our meeting there was a concern as to what actual coverages were
contemplated by Section 13(a)(2)since the operator would be providing
Directors'and Officers'liability coverage.According to Mr.Thompson,the intent
of the language is to assure full coverage of the project.The Directors and
Officers policy covers for errors and omissions made by management,and the
general liability covers for the actions of the staff operating the project.The
purpose of the language is to require the operator to provide professional liability
coverage for design and drafting activities,if such activities are taking place.
Typically the general liability policy has exclusionary wording as to coverage for
design and drafting performed by professionals..
Any such work provided by a subcontractor is covered by the requirements on
Page 2 of Exhibit C of the Agreement (a copy is attached).With respect to HEA
two questions must be addressed before we can go forward with this issue:(1)
will HEA perform such activities in operating and maintaining the project?,and
(2)if so,what coverage is necessary to avoid a gap in coverage?
Mr.Robert Hansen
March 4,1994
Page Two
By this letter |am requesting HEA and Stan Sieczkowski to discuss this issue at
our meeting.
Aircraft Coverage
Section 13(d)(1)requires the operator to obtain special coverage approved by
AEA for aircraft with more than 5 seat capacity.The agreement does not set out
any specific limits.Mr.Thompson recommends coverage of $1,000,000 seat,or
in the case of the nine passenger Islander contemplated for use by HEA,
$9,000,000.HEA has determined that $15,000,000 coverage will require an
approximate $10,000 additional premium payment annually.The impact of the
additional coverage on charter rates needs to be identified as well.
By this letter |am requesting HEA to obtain quotes for the $1,000,000 per seat
coverage.
Please be prepared to discuss these issues at the subcommittee meeting on
Wednesday.
Sincerely,
Daniel W.Oi Dewy -
cc:David L.Highers,BPMC Chairman
Stan Sieczkowski
TRANSMISSION REPORTSHOOOKOROORIOKIOK
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Es
w
ALASKA INDUSTRIAL DEVELOPMENT
4 AND EXPORT AUTHORITY
-__-_*
480 WEST TUDOR *ANCHORAGE,ALASKA 99503-66890 «(907)561-8050 »FAX (907)561-8998
March 4,1994
Mr.Ron Saxton
Ater,Wynne,Hewitt,Dodson &Skerritt
222 S.W.Columbia,Suite 1800
Portland,Oregon 97230
Re:Bradley Lake Insurance Subcommittee
Aviation Insurance
Errors and Omissions Insurance
Dear Mr.Saxton:
At our last meeting |agreed to obtain guidance from Mr.Brad Thompson of Risk
Management about two provisions in the Bradley Lake O&M Agreement.Those
provisions were Section 13(a)(2),errors and omissions,and Section 13(d)(1),
aircraft insurance.
Errors and Omissions Insurance
At our meeting there was a concern as to what actual coverages were
contemplated by Section 13(a)(2)since the operator would be providing
Directors'and Officers'liability coverage.According to Mr.Thompson,the intent
of the language is to assure full coverage of the project.The Directors and
Officers policy covers for errors and omissions made by management,and the
general liability covers for the actions of the staff operating the project.The
purpose of the language is to require the operator to provide professional liability
coverage for design and drafting activities,if such activities are taking place.
Typically the general liability policy has exclusionary wording as to coverage for
design and drafting performed by professionals.
Any such work provided by a subcontractor is covered by the requirements on
Page 2 of Exhibit C of the Agreement (a copy is attached).With respect to HEA
two questions must be addressed before we can go forward with this issue:(1)
will HEA perform such activities in operating and maintaining the project?,and
(2)if so,what coverage is necessary to avoid a gap in coverage?
Mr.Ron Saxton
March 4,1994
Page Two
By this letter |am requesting HEA and Stan Sieczkowski to discuss this issue at
our meeting.
Aircraft Coverage
Section 13(d)(1)requires the operator to obtain special coverage approved by
AEA for aircraft with more than 5 seat capacity.The agreement does not set out
any specific limits.Mr.Thompson recommends coverage of $1,000,000 seat,or
in the case of the nine passenger Islander contemplated for use by HEA,
$9,000,000.HEA has determined that $15,000,000 coverage will require an
approximate $10,000 additional premium payment annually.The impact of the
additional coverage on charter rates needs to be identified as well.
By this letter |am requesting HEA to obtain quotes for the $1,000,000 per seat
coverage.
Please be prepared to discuss these issues at the subcommittee meeting on
Wednesday.
Sincerely,
Daniel W.Beardsley
cc:David L.Highers,BPMC Chairman
Stan Sieczkowski
TRANSMISSION REPORTFOHIOOOOOOOOOOOOHIOK
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TIME IDENTIFICATION PAGES CODE
MAR G4 16:26 5832268879 G3ST 92753"OK Bs
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Or
-
Alaska Energy Authority
December 17,1993
David L.Highers
General Manager
Chugach Electric Association,Inc.
P.O.Box 196300
Anchorage,Alaska 99519-6300
RE:BPMC Insurance Subcommittee
Dear Mr.Highers:
During negotiations with Homer Electric Association,Inc.on the Bradley Lake
Hydroelectric Project Operation and Maintenance Agreement,several issue
regarding insurance coverage have arisen.We request that the necessary actions
be taken to re-establish a committee that can meet in early January,in advance of
the BPMC meeting.
A list of proposed agenda items is attached along with a brief synopsis of the'
issues.Dan Beardsley of my staff will put together a package for transmittal to the
committee members once the membership and date of the meeting are established.
Thank you for your assistance.
Very truly yours,
Dennis V.McCrohan
Deputy Director (Energy)
cc:David L.Fair,HEA
1,Bradley Lake Hydroelectric Project Insurance Requirements
A.Types of Coverage
1.Project Liability Insurance
Property
Boiler and Machinery
General Liability
Watercraft and Aviation
2.Directors and Officer's Liability
3.Operator's Policy
General Liability
Watercraft and Aviation
Workman's Comp.
Marine Insurance
Hazardous or Contaminated Materials Coverage
Debt Service
Self InsuranceNAYS
Project Specific Issues
1.Indemnification Clauses.
2.Operator/Dispatcher Conflicts Relating to Loss Liability
Additional Costs
Supplemental Agreements Between Dispatcher and Operator
Coverage Limits for Insurance
1.Term
2.Cost
°ross ALASKA INDUSTRIAL DEVELOPMENTAWAYANDEXPORTAUTHORITY
480 WEST TUDOR *ANCHORAGE,ALASKA 99503-6690 *(907)561-8050 *FAX (907)561-8998
pate:/-2-/9-7%
TIME:3/5
NOTICE:This facsimile contains confidential information that is being transmitted to and is
intended only for the use of the recipient named below.Reading,disclosure,discussion,
dissemination,distribution,or copying of this information by anyone other than the named
recipient or his or her employees or agents is strictly prohibited.If you have received this
facsimile in error,please immediately destroy it and notify us by telephone,(907)561-8050.
PLEASE DELIVER THE FOLLOWING PAGES TO:
Like tek KES
TRANSMITTING FROM:RICOH FAX 1000L (907)561-8998
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NUMBER OF PAGES (INCLUDING COVER PAGE):_,8
HARD COPY TO FOLLOW BY:Regular Mail Courier
No Documents will follow this transmission.
IF YOU EXPERIENCE ANY PROBLEMS IN RECRIVING,PLEASE TELEPHONE .THE OFFICENUMBER(907-561-8050)AND ASK FOR _£y/.
SPECIAL INSTRUCTIONS OR COMMENTS
DOCSMS23/p9
-TRANSMISSION REPORTBEAIGORIOORIOKCOKHORARIK
*AIDA (DEC 17 '93 «15:15 )
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13 -D
|fi |ALASKA INDUSTRIAL DEVELOPMENT*¥AND EXPORT AUTHORITY =ALASKA
Gar 3=ENERGY AUTHORITY
480 WEST TUDOR ANCHORAGE,ALASKA 99503 907 /561-8050 FAX 907 /561-8998
September 15,1994
Norman L.Story,Chairman
Bradley Project Management Committee
Homer Electric Association,Inc.
3977 Lake Street
Homer,Alaska 99603
Subject:Operator Liability
Bradley Lake Hydroelectric Project
Dear Norm:
Due to developments in the cost of the liability coverage for operator negligence,
the BPMC needs to reassess the position taken at the April PMC meeting
concerning Homer Electric Association,Inc.assuming liability for operator
negligence.
In April the PMC addressed the issue of operator liability insurance coverages
for the Bradley Lake Hydroelectric Project based on an April 26,1994 letter to
David L.Highers.Subsequently,by letter dated May 16,1994,Homer Electric
was advised that it was responsible for obtaining liability coverage for operator
negligence up to the deductible limits of the Property and Boiler and Machinery
policies for as long as Homer Electric operates the project.That responsibility
was based on nominal cost additional coverage under HEA's general liability
policy.
Since that time ARECA has reviewed the coverage and indicated the premium
for liability coverage for operator negligence for property loss would be $66,000.
That coverage would not cover losses to boiler and machinery.That premium
amount appears to be prohibitive for the limited coverage of the policy.In light
of that cost the BPMC should reassess its earlier decision.As we see it there
are six options available:
Norman L.Story
September 15,1994
Page 2
1)include the third party liability under the PMC general liability policy in
next year's insurance package placement.If HEA is unable to obtain an
acceptable quote,AEA will seek insurance through the State of Alaska's
broker,any additional cost to be borne by HEA,BPMC or both.
2)require HEA to obtain the coverage at its cost,
3)obtain the coverage at the BPMC's cost,
4)totally indemnify HEA for such losses,
5)partially indemnify HEA for such losses,(the amount of HEA's exposure to
be set by the PMC),or
6)HEA totally indemnify the PMC from such losses.
Our rationale for option one is due to coverage AEA has place for the Four Dam
Pool.The minimum premium for general liability is $50,000,The carrier added
liability coverage for operator negligence for an additional $5,000 to cover the
negligence of each of the four projects'operator's employees.This coverage
included losses to property and boiler and machinery.As specified in Section
13(a)(9)of the O&M Agreement,if HEA cannot obtain commercially reasonable
insurance,AEA through Risk Management can place the insurance.
AEA's preference is for HEA to have its brokers reexamine the cost of adding the
liability coverage for operator negligence to HEA's general liability policy.The
opinion of the State's broker and Risk Management remains that the cost of the
coverage should be nominal.If HEA's broker is unable to obtain commercially
reasonable insurance,the BPMC needs to address the issue and take one or
more of the six options above.
Very truly yours;
ROM ity
Dennis V.McCrohan
cc:|BPMC Members
Brad Thompson,Risk Management
J3B-3°
ALASKA INDUSTRIAL DEVELOPMENT
AND EXPORT AUTHORITY =_Amz=ENERGY AUTHORITY
480 WEST TUDOR |ANCHORAGE,ALASKA 99503 907 /561-8050 FAX 907 /561-8998
May 16,1994
Norman L.Story,Chairman
Bradley Project Management Committee
Homer Electric Association,Inc.
3977 Lake Street
Homer,Alaska 99603
Subject:Operator Liability
Bradley Lake Hydroelectric Project
Dear Norm:
As a follow up to my April 26,1994,letter to David L.Highers on this subject,this
letter is a confirmation of the operator liability insurance coverages forthe -
Bradley Lake Hydroelectric Project.
As approved by the BPMC,the Authority has undertaken to add Homer Electric
Association as an additional insured to the Property and Boiler and Machinery
insurance policies for the remainder of FY 94 and for succeeding years.As you
indicated,Homer Electric is responsible for obtaining liability coverage for
operator negligence up to the deductible limits of the Property and Boiler and
Machinery policies for as long as Homer Electric operates the project.
Thank you and your staff for the cooperative and efficient manner in which this
issue was resolved.
Very truly yours;
Bae Cohen
Dennis V.McCrohan
cc:BPMC Members
BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE
INSURANCE SUBCOMMITTEE MEETING MINUTES
March 9,1994
The Bradley Lake Insurance Subcommittee meeting convened at 41:00 A.M.on March
9,1994,at 480 West Tudor Road.
In attendance at the meeting were:
Dan Beardsley,Committee Chairman
Rick Eckert,Homer Electric Association
Mike Cunningham,Chugach Electric Association
Mike Yerkes,Homer Electric
Stan Sieczkowski,AEA
Tonya LaMothe,ARECA
Dave Gwaltney,Gwaltney and Gwaltney
Ward Livingston,Willis Corroon
Kirk Leadbetter,Willis Corroon
Via conference call:
Ron Saxton,Ater,Wynne,Hewitt,Dodson &Skerritt
Robert Hansen,Golden Valley Electric Association
Approval of Agenda
Dan Beardsley added the following item:
Old Business
F.AEA Waiver of Broad Form All States Endorsement to Y/orkers Compensation
Insurance.
New Business
A.ARECA Insurance Policies
Approval of Last Meeting Minutes
Added name of Mike Yerkes to those present at the last meeting.
ARECA Insurance Policies .
Tonya LaMothe provided a copy of the policies insuring Homer Electric for General
Liability,Automobile Liability and Worker's Compensation and E:aployers'Liability.
BPMC Directors and Officers Liability
The BPMC directors and officers liability insurance coverage premium infirmation ahs
not been obtained.Quotes will be distributed to the Insurance Subcommittee and
BPMC upon receipt.
Director &Officers Coverage v.Professional Liability
As indicated in the March 4,1994 letter to the Subcommittee members,the general
liability policy typically excludes coverage for design related activities.The insurance
representatives confirmed that the policies in place do not cover professional liability.
Additionally any design or testing,whether by a licensed individual or not,will fall under
the professional engineering exception.Incidental design accamplished as ordinary
maintenance is not covered under the existing policies,it is a risk that must be
assessed and will require an additional premium to add such activity to the insurance
coverage.
At this time the annual budget for design expenditures is $30,000.According to the
insurers,the potential types of design activities would have to be identified,rated and
submitted for quotations.A blanket endorsement without specifically addressing the
types of activities and the potential risks associated with each activity would require a
significant premium.In general,project errors and ommissions coverage is not
available for projects less than $2,000,000.The term insurance is limited to those
design problems that are discovered within three years from the work performance.
Lastly AEA and HEA cannot be named insureds under a professional liability policy.
The net result is that design activities performed by HEA are not insured.The
consensus of the committee is that HEA should not perform engineering activities that
change the process,safety or integrity of the facility,or affect structural or code
requirements without advising the BPMC and the Authority in advance of such work.
Bradley Lake Project Management Committee
Insurance Subcommittee Meeting Minutes -2-
The requirements for design consultants to accomplish such work will be addressed on
a case by case basis.Routine design activities that do not change the process,or
affect the safety,integrity,structural or code requirements of the project are in effect
self-insured.
HEA Coverage Premium Increase
Based on HEA's statement that HEA's Board of Directors would not change as a result
of adding the Bradley Lake Project,Kirk Leadbetter of Willis ana Corroon stated that
HEA's Director and Officer liability premiums will not change.An item of particular
note,the D&O coverage does not insure against property lozs and general liability.
Errors and ommissions by the directors and board that result in property loss and
general liability are an exception from the coverage under the property and general
liability policies that are in effect..
Aircraft Insurance -Special Coverage 6+Passengers
The O&M contract provision 13(d)(1)requires split limits of $5,000,000 for bodily injury,
$1,000,000 for passenger liability for each per seat for 5 passengers for a coverage of
$5,000,000,and $5,000,0000 for property damage per occurence.According to Dave
Gwaltney,the split coverage is not available,therefore,on behalf of HEA he placed a
$15,000,000 combined single limit policy.Technically that policy does not comply with
the contract,but provides the same total coverage required.That coverage resulted in
a $2,400 increase in the premium for the remainder of the 'policy period and is
effectively a $10,000 annual increase for HEA.
As to the nine passenger aircraft,per seat coverage,the question is whether the
coverage should be increased to $19,000,000 over the $15,000,000 to provide the
$1,000,000 per seat coverage as well as full coverage of the bodily injury and property
damage amounts or is the $15,000,000 sufficient.)
AEA will address the combined single limit policy versus the split policy with the
Division of Risk Management,as well determining the limit of coverage.
HEA will notify AEA of the cost of the additional coverage,seek a waiver from the split
limit policy requirement and provide the cost for the $19,000,000 single limit coverage.
Bradley Lake Project Management Committee
Insurance Subcommittee Meeting Minutes -3-
Aircraft Insurance -Slung Cargo
Without the specifics of the type of activity and the potential risks,an endorsement for
slung cargo cannot be rated for available coverage.In lieu of obtaining a costly
endorsement for an event that may not happen,HEA will not undertake any slung cargo
without first obtaining the coverage required under the contract.HEA will request a
waiver from the contract requirements for slung cargo insurance on the condition that it
will obtain such coverage before handling slung cargo.
Marine Insurance
Three issues arose under marine insurance:(1)pollution coverage for marine spills of
contaminated or hazardous materials,(2)coverage of owned watercraft,and (3)
coverage of non-owned craft.
(1)Pollution Coverage.
According to Dave Gwaltney maritime law applies to any barge shipments.Maritime
law places greater liability on the party contracting for the purcnase of goods that are
_being shipped than common law principles.As a result AEA has a harder time
contracting away its liability for transportation of fuel,hazardous and contaminated
materiels to and from the site.All of the insurers present concurred that the party
transporting such materials should provide a certificate of insurance identifying the
shipper's coverage.A ballpark estimate for $2,000,000 coverage with a $50,000
deductible for two diesel shipments to the site per year is about $4,000 to $5,000.
HEA will obtain cost figures and pollution coverages from Delta Western for the
shipment of fuel to Bradley Lake.
(2)|Owned Watercraft.
According to Tonya LaMothe,an additional annual premium of $590 per boat owned by
HEA will put HEA's boats under the general liability policy issued by ARECA.
Various agencies use AEA owned boats at the site for permit compliance activities.
HEA is the custodian of those boats and performs the mainterance.Tonya LaMothe
will determine if those AEA owned boats are covered by the polsy issued for HEA.
Bradley Lake Project Management Committee
Insurance Subcommittee Meeting Minutes -4-
(3)|Non-Owned Watercraft
HEA's current policy for non-owned watercraft has a $1,000,000 limit.An increase to
the $5,000,000 limit identified in the contract will cost approximately $10,000 per year.
Under the general liability policy,non-owned craft up to 42 feet can be covered for no
additional premium by ARECA.Most of the barges used by HEA are 60+feet.The
coverage would protect against general liabilty and bodily injury.
Cargo will not be covered under either the owned or non-owned provisions.
Homer will provide a request for waiver from the $5,000,0C'coverage along with
additional premium costs to increase the coverage from its existing $1,000,000 amount.
Hazardous or Contaminated Materials Insurance
On-site treatment of waste oil appears to be the most cost effective and least risky
alternative available.HEA has found that EPA has approved an incinerator that can be
used to burn waste oil without any additional permit requirements.The cost for the
incinerator is estimated to be $7,500.HEA will contact DEC to determine if the existing
incinerator can be approved for burning the waste oil.HEA will report back to the
committee on this matter.
Independent Insurance Review
No progress since last meeting.
Next Meeting
The next meeting will be scheduled two weeks after the various action items assigned
have been completed.
Meeting adjourned at 12:35 P.M.
Daniel W.Beardsley
Contracts Manager
Bradley Lake Project Management Committee
Insurance Subcommittee Meeting Minutes -5-
000000000009 90 9099009 9000000 0990000000 0900 00000009 0000000000008 0000008800 0000005 0000000000000 8 00008000:
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NOTICE:This facsimile contains confidential information that is beinuseoftherecipientnamedbelow.Reading,disclosure,discussion,information by anyone other than the named recipient or his or her employees or agents is strictlyhavereceivedthisfacsimileinerrar,please immediately destroy it and notify us by telephone,
PLEASE DELIVER THE FOLLOWING PAGES TO:
Mike Cunningham
Chugach Electric Association,Inc.
Rick Eckert
Homer Electric Association,Inc.
Robert Hansen
Golden Valley Electric Association,Inc.
Ran Saxton
Ater,Wynne,Hewitt,Dodson &Skeritt
Tonya LaMothe
ARECA Insurance Management,Inc.
Ward N.Livingston,CPCU,ARM
Vice President.Account Executive
DATE:March 11,1994
9 transmitted ta and is intended only for thedissemination,distribution,or copying of this
prohibited.If you(907)561-6050.
P,O01TRANSACTIONREPORT
MAR-11-94 FRI 15:11
BROADCAST
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MAR-11 14:51 5620027 2'17" =6 SEND (M)OK 013
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14:57 5032260079 2'20"6 SEND (M)OK 013
15:00 5615547 1°46"==6 SEND (M)OK 013
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DATE:March 11,1994
NOTICE:This facsimile contains confidential information that is being transmitted to and is intended only for the
use of the recipient named below.Reading,disclosure,discussion,dissemination,distribution,or copying of this
information by anyone other than the named recipient or his or her employees or agents is strictly prohibited.If you
have received this facsimile in error,please immediately destroy it and notify us by telephone,(907)561-8050.
PLEASE DELIVER THE FOLLOWING PAGES TO:
Mike Cunningham
Chugach Electric Association,Inc.
Rick Eckert
Homer Electric Association,Inc.
Robert Hansen
Golden Valley Electric Association,Inc.
Ron Saxton
Ater,Wynne,Hewitt,Dodson &Skerritt
Tonya LaMothe
ARECA Insurance Management,Inc.
Ward N.Livingston,CPCU,ARM
Vice President,Account Executive
Willis Corroon
Dave Gwaltney
Gwaltney &Gwaitney,Inc.
NUMBER OF PAGES (INCLUDING COVER PAGE):6
HARD COPY TO FOLLOW BY:Regular Mail Courier
>X<__No Documents wiil follow this transmission.
IF YOU EXPERIENCE ANY PROBLEMS IN RECEIVING,PLEASE TELEPHONE THE OFFICE
NUMBER (907)561-8050 AND ASK FOR BRENDA.
Attached are the draft minutes from the March 9,1994,BPMC Insurance Subcommittee
meeting.Please fax any corrections back to me at 561-8998.
Thanks,
Dan Beardsley
Contracts Manager (Energy)
|noe**:
:13 a,
"@ Se7)|:ALASKA INDUSTRIAL DEVELOPMENT -"Auk AND EXPORT AUTHORITY
480 WEST TUDOR *ANCHORAGE,ALASKA 99503-6690 *(907)561-8050 *FAX (907)561-8998
April 27,1994
Mr.David L.Highers
BPMC Chairman
Chugach Electric Association,Inc.
P.O.Box 196300
Anchorage,Alaska 99519-6300
Subject:Operator Liability
Bradley Lake Hydroelectric Project
Dear Dave:
The issue of Homer Electric Association's liability in the event of a loss caused
as a result of an operator's negligence was discussed in a teleconference on
April 22,1994.The following individuals participated in the teleconference:Rick
Baldwin,Attorney at Law,Rick Eckert and Mike Yerkes,HEA,Brad Thompson,
State of Alaska Division of Risk Management,Tonya Lamothe,ARECA,Kirk
Leadbetter,Willis Corroon,and Dan Beardsley,AEA.
Homer's concerns were twofold:
1.HEA's liability in the event the loss exceeds the Self Insured Retention,
SIR,(deductible)and the Authority's insurer exercises its right of
subrogation and sues HEA for the amount it has paid the Authority.
2.HEA's liability for the SIR to the Authority or the BPMC.
Homer Electric Association has raised concerns about its potential liability for the
entire loss caused by the negligence of an operator.The Operating and
Maintenance Agreement for Bradley Lake specifies that the Operator is liable for
the negligence of its contractors and employees,Section 13(a)(1),page 12.
AEA has resolved the first concern by notifying the insurance carrier to name
HEA as an additional insured on the Property and Boiler and Machinery policies,
for the remainder of this year and for FY 95.
David L.Highers
April 27,1994
Page Two
As to the second issue,that is a policy call.Does the PMC want the operator to
have the responsibility for claims against the Self Insured Retention that arise
due to HEA's operator's negligence?This issue should be reviewed in the light
that it is only those claims against the SIR caused by HEA's negligence.Any
other cause of loss would not apply against the operator.
Brad Thompson of Risk Management believes that the operator should be held
accountable for losses caused by its employees'negligence.The maximum loss
is limited to the amounts of the SIR -$1,000,000 for property damage and
$25,000 to $50,000 for boiler and machinery.He thinks HEA should be able to
obtain a limited policy which covers only its employees negligent acts up to the
limits of the self insured deductible.
Alternatively,the PMC may elect to relieve HEA of that liability by waiving or
indemnifying HEA from such losses,or cover the cost of the insurance as a
project cost.Please raise this issue for PMC discussion and provide AEA and
HEA with the PMC's policy on this matter.
Very truly yours,
POniiu V We Coley
Dennis V.McCrohan
Deputy Director,Energy
DWB:bif
h:all/beardsie/blins017
cc:All BPMC Members
All BPMC Insurance Subcommittee Members
William R.Snell,Executive Director,AEA
Brad Thompson,Director,Division of Risk Management
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480 WEST TUDOR -ANCHORAGE,ALASKA 99503-6690 +(907)561-8050 *FAX (907)561-8998
DATE:4 Jz 2/ey
TIME:
NOTICE;This facsimile contains confidential information that is being tranemitted to and isintendedonlyfortheuseoftherecipiontnamedbelow.Reading,disclosure,discussiondissemination,distribution,or copying of this information by anyone other than the namedrecipientorhisorheremployeesoragentsigstrictlyprohibited.If you have roceived thisfacsimileinerror,please immediately destroy it and notify us by telephone,(907)561-8050.
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/2-F
BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE
INSURANCE SUBCOMMITTEE MEETING MINUTES
February 10,1994
The Bradley Lake Insurance Subcommittee meeting convened at 2:00 P.M.on
February 10,1994,at 480 West Tudor Road.
In attendance at the meeting were:
Dan Beardsley,Committee Chairman
Rick Eckert,Homer Electric Association Representative
Mike Cunningham,Chugach Electric Association Representative
Stan Sieczkowski,AEA
Tonya LaMothe,ARECA
Via conference call:
Ron Saxton,Ater,Wynne,Hewitt,Dodson &Skerritt
Robert Hansen,Golden Valley Electric Association,Representative.
Insurance Coverage
The first item on the agenda was the insurance coverages.The overview attached to
the agenda was discussed.Three areas of coverage required for the operator by the
Bradley O&M Agreement were discussed at length.Those three provisions were
13(a)(2),Errors and Omissions Insurance,13(b)(3)(iii),Worker's Compensation
Insurance Broad Form All States Endorsement,and 13(d)(1),Aircraft Insurance.
With respect to the errors and omissions insurance,HEA was concerned that:
(1)AEA does not require such insurance from the dispatcher;since the operator is
the only party required to have that coverage,should that coverage be provided
for both the operator and the dispatcher by AEA,
(2)does the errors and omissions relate to professional liability as well as directors
and officers insurance or is there additional coverage contemplated,and
(3)|what amount of coverage would be required.
As to item #1,any disparity and coverage requirements will be addressed through the
Master Operating Agreement for the project.Any inconsistencies with the Master
Operating Agreement and existing agreements will be subsequently addressed.As to
item #2,the Energy Authority will obtain an interpretation from Brad Thompson of Risk
Management as to the contemplated coverage and intent of the errors and omissions
provision.For item #3,HEA will obtain quotes to extend its existing directors and
officers liability coverage to the Bradley Lake Project and submit any proposed
increase in premium to the committee for review.
Homer Electric provided a letter dated February 7,1994,addressed to Dan Beardsley
of the Alaska Energy Authority from Mike Yerkes of Homer Electric Association
requesting a waiver of the Broad Form All States Endorsement required under Section
13(b),The substantive provisions of that letter were read to the committee members.
Based on the letter,and information and comments by Ms.LaMothe,the subcommittee
was advised that HEA employees are based in Alaska exclusively and that any travel
by HEA employees on project business would be covered under the Alaska Worker's
Compensation policy.In addition,the subcontractor insurance provisions require any
subcontractor with employees based in other states to include statutory coverage for
states where those employees are engaged in work or employed.The committee
recommends granting HEA the requested waiver.
Two provisions of the aircraft insurance raised concern,the coverage for slung cargo
exposures and special coverage for use of an aircraft with more than five seat capacity.
According to Ms.LaMothe an endorsement with a reporting provision can be obtained
for slung cargo coverage.Typical slung cargo coverage requires 48 hours notice to put
in place,the endorsement only requires prior notice of a slung cargo load with a
subsequent billing of the appropriate premium by the insurer.Homer will obtain such a
provision.HEA anticipates using a nine passenger Islander aircraft.Since an aircraft
with more than a five seat capacity is contemplated for use,HEA needs to know the
terms and limits of special coverage they must obtain to get AEA's approval.AEA will
provide this information to Homer.In the interim HEA will operate with the existing $5
million coverage.
BPMC Directors and Officers Liability
The BPMC directors and officers liability insurance coverage was discussed,but was
tabled until the next meeting when the premium information would be available.
Marine Insurance
The marine insurance issues revolve primarily around transportation of fuel and waste
oil.Presently fuel is transported to the project site via a fuel truck barged to the site.
To reduce liability Homer has entered into contracts where the fuel is to be delivered
FOB to the dock at Bradley.After discussion the committee recommended that future
fuel deliveries be FOB at the fuel tanks rather than the dock location.This would
increase the distance from the most critical area,the wetlands and tidelands and
further AEA's potential liability for a spill during transfers at the dock.
Bradley Lake Project Management Committee
Insurance Subcommittee Meeting Minutes -2-
The second major area of concern involves removal of waste oil.Presently the oil is
removed via drums from the site.A maritime spill is the primary concern related to
handling of the waste oil.Homer Electric will analyze the following alternatives:(1)the
purchase of specialized equipment for transporting hazardous or contaminated
materials in maritime circumstances,(2)insurance to cover losses as a result of the
spill,(3)the impacts of self insurance and associated risks,and (4)contracting with an
independent party to remove the oil and assume ownership on the site.A secondary
concern is to address the extent of whether waste oil and contaminated products
should be stored on site resulting in less frequent but larger removal of materials,or
more frequent smaller cargoes of such material.Homer is to provide a report to the
operations and dispatch committee for their recommendations to the PMC.
Hazardous or Contaminated Materials Insurance
HEA was not aware that the property insurance does not cover contaminated or
hazardous material spills on the site.HEA will address the risk associated with such on
site spills.HEA's spill containment coordinator and the AEA spill containment
coordinator will address the potential risk with the regulatory agencies involved in
regulating contaminated substances.Mr.Sieczkowski advised those present that the
petroleum facilities are the state-of-the-art and were designed and constructed to
reduce potential liability through facility failure.
Debt Service Insurance
The debt service coverage premiums for business interruption for durations from 1,2,
and 5 years through the remaining life of the bond will be researched by AEA.The
correlation between the project property insurance and such business interruption or
loss insurance should be examined as a part of that effort.During the independent
insurance review required by the bond,the relationship between the maximum
probable loss and property insurance will be reviewed.
Independent Insurance Review
As required by the bond AEA will seek an independent insurance review.Prior to
initiating a proposal for such services,AEA will consult with the bond counsel to
determine if Risk Management is a sufficient independent reviewer to meet the criteria
of the bond.If Risk Management is not eligible,AEA will either request Risk
Management to amend the scope of their current insurance analysis contract,or initiate
a multi-year term contract to provide the review.
Indemnification Clauses
The difference between the indemnification clauses in the Homer O&M Agreement,the
Chugach Electric Dispatch Agreement and the Master Operating Agreement were
Bradley Lake Project Management Committee
Insurance Subcommittee Meeting Minutes -3-
discussed.The principal analysis of the committee was that the property coverage
provides essentially the same function to both AEA contractors.It covers for all losses
except for those that are grossly negligent or willful and wanton.The major difference
relates to the errors and omissions/or professional liability provision.As indicated
above the professional liability or errors and omissions clause is to be reviewed with
Risk Management.Existing Agreements will be reviewed in conformance with the
Master Operating Agreement at such time as it is adopted.
Next Meeting
The next meeting is scheduled for March 9,1994,at 2:00 P.M.in the AIDEA offices at
480 West Tudor Road.
Meeting adjourned at 4:30 P.M.
Daniel W.Deni 2 Zs
Contracts Manager
Bradley Lake Project Management Committee
Insurance Subcommittee Meeting Minutes -4-
Homer Electric Association,Inc.
HOMER DISTRICT:3977 LAKESTREET @ HOMER,ALASKA 99603 @ (907)235-8551
February 7,1994 ear FOrEGeiein
Dan Beardsley
Alaska Energy Authority FEB 10 1994
480 West Tudor Road
.tAnchorage,AK 99516 Alaska Industrial DevelopmenandExportAuthority
Dear Dan:
The ARECA Insurance Exchange is our principal insurer,and they
will be providing you with certificates of insurance for the lines
of coverage they provide us which the Bradley Lake contracts
require us to have.They provide our coverage for General
Liability,Auto Liability and Workers Compensation.
We request a waiver under Section 13 (a)(10)of the Bradley LakeOperationsandMaintenanceAgreementfromtherequirementcontainedinSection13(b)that the Workers Compensation policy contain
Broad Form All States Endorsement.This coverage is not needed
because Homer Electric will not have employees working on the
Bradley Lake Project regularly employed outside the state ofAlaska.Also,the ARECA Insurance Exchange has now been informed
by the Division of Insurance that if the Exchange is to providethisendorsementinthefuture,they must become licensed in all
states.They could take this step if it were necessary,but itwouldbeexpensiveandservenousefulpurpose.As an alternative,Homer Electric could purchase its Workers Compensation Insurance
from a national carrier who could provide the required endorsement,
but the premium from such a carrier would be 30%to 40%higher thanthepremiumwepaytotheARECAInsuranceExchange.We see this
cost differential,for something that is not needed anyway,as
sufficient to trigger the "reasonable terms and conditions"
provision contained in Section 13 (a)(10).
Sincerely,
HOMER ELECTRIC ASSOCIATION,INC.Bete iteMikeYerkes
Project Manager
ARECA.ins\MY\ss
cc:Norm Story
Bob Klein
Dave Fair
ARECA
Alaska Energy Authority
480 West Tudor Road
Anchorage,Alaska 99516
February 3,1994
Ron Saxton
Ater,Wynne,Hewitt,Dodson &Skerritt
222 S.W.Columbia,Suite 1800
Portland,Oregon 97230
Subject:BPMC Insurance Subcommittee Meeting
AIDEA,February 10,2:00 P.M.
Dear Ron:
As you are aware,at the BPMC meeting on January 25,1994,BPMC Chairman
David Highers appointed the following individuals to the BPMC Insurance
Subcommittee:Daniel W.Beardsley,Subcommittee Chairman,Alaska Energy
Authority;Mike Cunningham,Chugach Electric Association,Inc.;Rick Eckert,
Homer Electric Association,Inc.;Robert Hansen,Golden Valley Electric
Association,Inc.;and Ron Saxton,Ater,Wynne,Hewitt,Dodson &Skerritt.
Addresses,phone numbers and fax numbers for each of the Subcommittee
Members are attached.
Enclosed you will find a synopsis of the various insurance coverages for
Bradley Lake and the issues to discuss at 2:00 P.M.on Thursday,February 10,
1994,in the Alaska Industrial Development and Export Authority's (AIDEA)
conference room,located at 480 West Tudor Road,Anchorage,Alaska.If you
are unable to personally attend,please make arrangements for a teleconference
with Brenda Fuglestad at 561-8050.If possible please make those
arrangements with Brenda by 4:00 P.M.on Wednesday,February 8.Should
you have additional!items to add to the Agenda please provide me with the topic
and a synopsis by Tuesday,February 8,so that the information can be provided
to all members in advance of the meeting.
Sincerely;ar
Daniel W.Beardsley
Enclosures
ce:David L.Highers,Chairman BPMC
Daniel W.Beardsley,Subcommittee Chairman
Alaska Energy Authority
480 West Tudor Road
Anchorage,Alaska 99503
Phone:561-8050
Fax:561-8998
Mike Cunningham
Chugach Electric Association,Inc.
P.O.Box 196300
Anchorage,Alaska 99519-6300
Phone:162-4778
Fax:562-0027
Rick Eckert
Homer Electric Association,Inc.
3977 Lake Street
Homer,Alaska 99603
Phone:235-3353
Fax:235-3323
Robert Hansen
Golden Valley Electric Association,Inc.
P.O.Box 71249
Fairbanks,Alaska 99707-1249
Phone:451-5602
Fax:451-5633
Ron Saxton
Ater,Wynne,Hewitt,Dodson &Skerritt
222 S.W.Columbia,Suite 1800
Portland,Oregon 97230
Phone:503-226-1191
Fax:503-226-0079
AGENDA
BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE
INSURANCE SUBCOMMITTEE
February 10,1994
AIDEA Conference Room
2:00 P.M.
CALL TO ORDER
INTRODUCTION OF COMMITTEE MEMBERS
NEW BUSINESS
A.Overview of Present Coverages and Premiums
1.Property
2.Boiler and Machinery
3.General Liability
4.Watercraft and Aviation
B.Additional Coverages/Limits
1.HEA Additional Directors and Officers
Liability
2.BPMC Directors and Officers Liability
3.Marine Insurance
4.Environmental Insurance
5.Debt Service Coverage
6.Subcontractor Requirements
Cc.Self Insurance Fund
D.Project Specific Issues
1.Indemnification Clauses
2.Loss Liability -Operator/Dispatcher
E.Independent Insurance Review -Bond Requirement
COMMENTS
ASSIGNMENTS
NEXT MEETING DATE
ADJOURNMENT
PRESENT COVERAGES
1.Project Insurance
Coverage:
Protects against facility loss -including losses
caused by unintentional acts of operators.Does not
protect against losses resulting from failure to
prudently maintain and operate.
Types:
Property
Project Value:$162,981,800 (Based on Bonded
Indebtedness amount)
Amount of Coverage:$60,000,000 with $1,000,000
Self Insured Risk (SIR)
Premium:$151,000
Boiler and Machinery
Amount of Coverage:$15,000,000 with SIR of
$25,000 to $100,000
Premium:$37,650
2.State of Alaska Operator's Policies
(Principally Self Insured through State of Alaska Risk
Management)
General Liability (Includes Bodily Injury and Property
Damage)
Amount of Coverage:$75,000,000 with $5,000,000
SIR
Premium:$5,000
Automobile Liability (Provided by State of Alaska Risk
Management)
Amount of Coverage:$75,000,000 with $2,500,000
SIR
Premium:Risk Management is researching
Watercraft
Amount of Coverage:$200,000,000 with $1,000,000
SIR
Aviation
Amount of Coverage:$300,000,000 with $250,000 SIR
Workers'Compensation
Amount of Coverage:SIR
Premium:1.12%of employee wages
3.Operator's Subcontractor's Policies
Worker's Compensation:
Amount of Coverage:$100,000 Employer's Liability
Other required State &Federal
Comprehensive General Liability Insurance:
Contract under $1,000,000
Amount of Coverage:$300,000 per occurrence,
$300,000 aggregate
Contract over $1,000,000
Amount of Coverage:$1,000,000 per
occurrence
$1,000,000 aggregate
Comprehensive Automobile Liability Insurance:
Amount of Coverage:$100,000 bodily injury
$50,000 property damage.
Professional Liability Insurance:
Amount of Coverage:
Contract Amount Coverage
Under $100,000 $100,000
$100,000 to $499,999 $250,000
$500,000 to $999,999 $500,000
$1,000,000 and up NEGOTIABLE
4.Dispatcher's Insurance:None
COVERAGES REQUIRED FOR OPERATOR
General Liability (Includes Bodily Injury and Property
Damage)
Amount of Coverage:$5,000,000
Automobile Liability
Amount of Coverage:$5,000,000
Watercraft and Aviation
Amount of Coverage:$5,000,000 Bodily Injury
$1,000,000 Passenger Liability
$5,000,000 Property Damage
Workers'Compensation
Amount of Coverage:$500,000 Employer's Liability
Other required State &Federal
Subcontractor's Coverages See number 3 above.
POSSIBLE ADDITIONAL COVERAGES
1.Directors'and Officers'Liability
Protects against suits by third parties against decision
Makers.Utilities should provide this coverage for their
staff as additional coverage over and above the officers and
directors of the utility as a part of the BPMC.
Amount of Coverage:$1,000,000
Premium (Estimate):$20,000
2.Marine Insurance
Coverage for marine transport of hazardous and contaminated
materials.
Amount of Coverage:To be discussed
3.Environmental Insurance
Coverage for spills of hazardous and contaminated materials
on the project site.
Amount of Coverage:To be discussed
4.Debt Service Coverage
Coverage for loss of commercial operation to pay debt
service during insured outage.
Amount of Coverage:To be discussed
Issues for discussion by BPMC Insurance Subcommittee:
1.Operator/Dispatcher Issues
Do the agreements address the potential conflicts
regarding loss questions between the different parties?
What coverages should they have and what is the
additional cost as a result of the two independent
parties?
Do the indemnification clauses provide consistent and
appropriate coverages?
Self Insured losses
In the event of a loss not the fault of the operator,
is it clear that the Purchasers bear that risk of loss?
Should the Project have a self insurance fund?Are
there tax consequences?
13.
(a)
Bradley Lake Operations and Maintenance Agreement
Insurance Provisions
Insurance
General.
(1)Each Party shall be liable for the negligent,willful and grossly negligent
acts of its officers,employees,agents and contractors with respect to the
ownership,construction,operation,maintenance or repair of the Project.
Its is recognized that the project insurance does not cover the willful and
grossly negligent acts of a party.Each Party shall be solely liable for the
willful and grossly negligent acts of its officers,employees,agents and
contractors.
(2)During the term of this Agreement,the Operator shall use its best efforts to
maintain insurance satisfactory to the Authority and the BPMC covering
injury to persons or property suffered by any Party or a third party,as a
result of errors,omissions,or operations which arise both out of and
during the course of this contract by the Operator or by any of its
contractors.Such "Operator insurance"may be obtained either by the
Operator or be provided by the Authority or the BPMC under insurance
policies covering the Project.
(3)Such Operator's insurance shall be the primary coverage for the exposures
delineated in subsection (2)above with respect to the State of Alaska,its
officers,agents,and employees,the BPMC,its officers,agents,and
employees,and the Operator,its officers,agents,and employees,as named
insureds.Any additional insurance or self-insurance separately maintained
by the State,except insurance purchased on behalf of the BPMC,shall be
in excess of the Operator's insurance and shall not contribute to it.
(4)The Operator will bear the cost of the required insurance,which cost shall
be included in the Project O&M Budget as an operating cost.
(5)If the Operator elects to individually obtain the insurance required by
subsection (2)above,it may be maintained as part of any other policy or
policies of the Operator so long as the coverage of such policy or policies
is substantially the same as if such coverage were maintained under a
separate policy.The policy must be acceptable to the Division of Risk
Management.
(6)
(7)
(8)
(9)
(10)
(11)
(12)
Policies maintained under this Agreement must provide that any
cancellation,non-renewal or material change be upon thirty (30)days
written notice to all named insureds.Insurance Companies shown on the
certificate of insurance must be acceptable to the Authority.The Authority
shall not unreasonably withhold approval of such Insurance Company.
The Operator shall,at least thirty (30)days prior to cancellation,non-
renewal,or material change,provide the Authority with written evidence of
insurance which replaces or reinstates the required insurance coverage.
A copy of the insurance policies required by this Section will be furnished
to the Authority prior to beginning work under this Agreement.Prior to
February |of each year thereafter,evidence of insurance shall be provided
by the Operator.
The obligation to obtain and maintain insurance coverage pursuant to this
Section shall be subject to the general availability of such coverage under
reasonable terms and conditions.If one or more of the required insurance
coverages is not available under reasonable terms and conditions,the
Operator shall,under the guidance and direction of the BPMC and Division
of Risk Management,use its best efforts to obtain substantively equivalent
insurance coverage acceptable to the BPMC,the Authority,and the
Division of Risk Management.
If,after utilizing its best efforts,the Operator is unable to obtain the
required insurance coverage under reasonable terms and conditions,as
reasonably determined by the Operator,the Operator shall request a waiver
of the relevant insurance requirement.The request shall outline steps taken
by the Operator to obtain such insurance and shall disclose quotations
received for coverage.To the extent the waiver will not materially affect
the safe and prudent operation of the Project,the Authority,after
consulting with the Division of Risk Management,will not unreasonably
withhold approval of the requested waiver.Failure to furnish satisfactory
evidence of insurance or failure to maintain the policy without complying
with this subsection shall result in a material breach of this Agreement.
Any Party,before the expiration date of the existing policy,may reopen the
insurance requirements on sixty (60)days notice.
The Authority shall annually,prior to February Ist each year,furnish
evidence of insurance to the Operators and the BPMC.
(b)Workers'Compensation Insurance.
(1)
(2)
(3)
The Operator shall maintain,for all employees of the Operator engaged in
work under this Agreement,workers'compensation insurance as required
by AS 23.30.045.The Operator is responsible for workers'compensation
insurance for any of its subcontractors who directly or indirectly provide
services under this Agreement.
The insurer shall agree to waive all rights of subrogation against the State
of Alaska,its officers agents,and employees for losses arising from
operation of the Project.
Workers'compensation insurance policy must include:
(i)statutory coverage for states in which employees are engaging in
work;
(ii)Employer's Liability Protection of not less than $500,000 per
occurrence;
(iii)|Broad Form All States Endorsement;and
(iv)coverage as required by all State and Federal Acts where
applicable.
(c)|Comprehensive General Liability Insurance.
(1)
(2)
The Operator shall maintain comprehensive general liability insurance.The
Authority,acting on behalf of the BPMC,has as of the effective date of
this Agreement acquired general liability insurance which satisfies part of
this requirement.The Operator shall secure any additional insurance as
required to meet its obligations under this subsection to the extent the
insurance so acquired by the Authority is not sufficient to meet the
Operator's obligations.The BPMC and the Authority shall be included as
additional insureds as respects insurance required in this Section and shall
not by their inclusion be responsible to the insurance carrier for payment of
premium therefor.These insurance policies must also contain a provision
providing for cross liability or severability of interest.
The comprehensive general liability insurance shall be subject to the
following limits of liability:
(d)
(e)
(1)Bodily Injury and Property Damage Liability of a minimum
$5,000,000 Combined Single Limits each occurrence and affording
insurance for Premises Operations,Owners and Contractors'
Protective,Independent Contractors,Products/Completed
Operations,Blanket Contractual Liability,Broad Form Property
Damage,and personal Injury Liability;
(ii)|Automobile Liability Insurance covering all vehicles.Such
insurance shall provide coverage of not less than $5,000,000
Combined Single Limit each occurrence for Bodily Injury and
Property Damage Liability.
Additional Liability Insurance.
The Operator shall maintain the following additional insurance,where applicable,
for aircraft and watercraft owned or contracted for by the Operator.
(1)Owned Aircraft and Non-Owned Aircraft with seating capacity of five seats
or less,except commercial,scheduled flights,with limits of liability not less
than:$5,000,000 for Bodily Injury per occurrence;$1,000,000 for
Passenger Liability per seat;and $5,000,000 for Property Damage Liability
per occurrence.Coverage must include Slung Cargo exposures.If an
aircraft with more than five seat capacity is used,special coverage and
limits must be obtained and must be approved by the Authority;and
(2)Owned Watercraft and Non-Owned Watercraft with limits of liability not
less than $5,000,000 per single occurrence as provided in the "in Rem
Endorsement"under "Maritime Coverage B."
Subcontractor's insurance.
Any contract entered into with a subcontractor,other than a Purchaser,by the
Operator to perform part of its obligations hereunder shall include the indemnity
and insurance provisions attached as Exhibit C.The Operator may request a
waiver of part or all of such provisions where such waiver will not materially affect
the Project and the Operator determines the waiver is necessary to its performance
of this Agreement.The Authority will not unreasonably withhold approval of such
waiver.
EXHIBIT "C"
INSURANCE
l.Contractor to purchase/maintain insurance for duration of agreement,plus
one year following final payment.
2.Specified limits are minimum levels.If the policy contains higher limits,
contracting agency is entitled to coverage of higher limits.
3.Certificate of insurance must be furnished to contracting agency.
e Must provide for 30-day prior notice to the contracting agency of
cancellation,reduction in liability.
e Failure to furnish constitutes material breach and grounds for termination.
Types of Insurance
Worker's Compensation:Contractor responsible for subcontractors.Coverage must
include statutory coverage for states where employees are engaging in work and
employer's liability protection not less than $100,000 per person,$100,000 per
occurrence.Where applicable,coverage for all federal acts must also be included.
Comprehensive of Commercial General Liability Insurance:Covers all operations of
contractor providing insurance for bodily injury and property damage liability
including coverage for:
e Premises and Operations
e¢Products and Completed Operations
e Broad Form Damage;and
e Personal Liability
Comprehensive Policy:Minimum combined single limit of liability is $300,000 per
occurrence,$300,000 aggregate for bodily injury,property damage and personal
injury.
Commercial Policy:Minimum limits of liability are $300,000 per occurrence
(combined single limit)for bodily injury and property damage,$300,000 per
occurrence for personal injury,$300,000 aggregate for products-completed
operations,and $300,000 general aggregate.
Comprehensive Automobile Liability Insurance:Covers all owned,hired,and non-
owned vehicles with coverage limits not less than $100,000 per occurrence bodily
injury and $50,000 property damage.
Professional Liability Insurance:Covers all negligent errors,omissions which the
contractor,subcontractor or their employees make in the performance of the
agreement which results in financial loss to the contracting agency.
Minimum Limits:
Combined Single Limit
Contract Amount Occurrence and Annual Aggregate
Under $100,000 $100,000
$100,000 to $499,999 $250,000
$500,000 to $999,999 $500,000
$1,000,000 and up NEGOTIABLE
Contracting agency reserves right to implement an Owner Controlled Insurance
Program with option of obtaining Professional Liability Insurance,contractor isn't
required to carry Professional Liability Insurance.
EXHIBIT C
Page 2 of 2
INSURANCE PROVISIONS
Proposed in Bradley Lake Master Operating Agreement,Exhibit
A.
(g)Insurance.During the term of the Contract,the
Contractor shall purchase and maintain insurance covering
injury to persons or property suffered by the Authority or a
third party,as a result of errors or omissions or
operations by a Contractor or its subcontractor which arise
both out of and during the course of the Contract.The
Contractor shall require all subcontractors providing
services directly or indirectly under a Contract to provide
the same insurance as required of the Contractor.Coverage
shall also provide protection against injuries to all
employees of the Contractor and the employees of any
subcontractor engaged in work under a Contract.Copies of
all required insurance policies shall be furnished to the
Authority prior to beginning work under a Contract.These
policies will show evidence of coverage and provide for
ninety (90)days notice of written cancellation,non-renewal
for material change in the coverage.
The Contractor shall purchase insurance adequate to
cover its operations in connection with the work under the
Contract.Specifically,each Contractor shall maintain
Worker's Compensation Insurance and Comprehensive General
Liability Broad Form Insurance,Automobile Liability
Insurance,Owned Aircraft Insurance (where applicable),and
Owned Watercraft (where applicable),in amounts acceptable
to the Authority and consistent with the Power Sales
Agreement.
INDEMNIFICATION
1.Proposed in Bradley Lake Master Operating Agreement,
Exhibit A
(h)Indemnity.The Authority,to the extent permitted
by applicable law and subject to the availability of funds,
and each Contractor (as Indemnitor")agrees to and shall
indemnify and defend the other,its officers,employees,and
agents (as "Indemnitee")for tort liability for all claims
for damages and injuries of any character or nature
whatsoever arising from the sole negligence of the
Indemnitor,including its office,employees or agents in
relation to performance under this Agreement.Indemnitor
agrees to assume the defense thereof and to pay all expenses
(including attorney's fees)connected therewith.For
purposes of this section,"sole negligence"shall include
acts or omissions of the Indemnitor,its officers,
employees,or agents,or any combination thereof,and
situations where such acts or omissions,in combination with
the negligence of third parties combines to cause injury or
damages to persons or property.It shall not include
situations where the acts or omissions of the Indemnitor,
its officers,employees,or agents combines with the
negligence of Indemnitee to cause such injury,which
situations shall be governed by the provisions of the
subsection below relating to concurrent negligence.
Each party agrees that liability (including costs of
defense and attorney's fees)for claims arising from the
concurrent negligence of both Parties shall be apportioned
according to the respective percentage of fault attributable
to each Party as determined by agreement or by the trier of
fact.
2,Dispatch Agreement,Section 7,Miscellaneous Provisions
(a)Chugach as agent for the Authority.As Dispatcher,
Chugach acts as agent for the Authority to dispatch Project
output on behalf of the Authority so that the Authority is
able to sell that output.In consideration for Chugach
acting as Dispatcher,the Authority will therefore,
indemnify and hold Chugach harmless from all claims against
Chugach in its capacity as Dispatcher,and from all claims
based on Chugach's acts or omissions as Dispatcher,to the
full extent provided by law;provided,that the Authority
shall not indemnify or hold Chugach harmless to the extent
of any liability arising from Chugach's gross negligence or
Chugach's wanton,willful,or intentional misconduct.
Issues for discussion by BPMC Insurance Subcommittee:
1.Operator/Dispatcher Issues
Do the agreements address the potential conflicts
regarding loss questions between the different parties?
What coverages should they have and what is the
additional cost as a result of the two independant
parties?
Do the indemnification clauses provide consistent and
appropriate coverages?
Self Insured losses
In the event of a loss not the fault of the operator,
is it clear that the Purchasers bear that risk of loss?
Should the Project have a self insurance fund?Are
there tax consequences?
NEW FILE REPORTSSOGOOGHORIIORK
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NO.CODE IDENTIFICATION
98 SEND IMMEDIATE 18 3832260879
REMAINING CALL CAPACITY 299
ok OK OK OK OK OK OK OK ok ok ok OK ok OK OK OK OK OK OK OK Ok OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OKKREKEKKEKKKKKKKHEKKEKKKEKKKEEKE BHRKEKKKKKKKKKKRKKERKKKKRKKXKRK
TRANSMISSION REPORTSEOOOOOOOOOORK
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Y51-5633
@ ALASKA INDUSTRIAL DEVELOPMENTAANDEXPORTAUTHORITY
480 WEST TUDOR *ANCHORAGE,ALASKA 99503-6690 «(907)561-8050 »FAX (907)561-8998
"Plaase Ag \wee Awe!
Vhanks mech:DATE:a-B-W
TIME:
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"'Kobeck Hensen
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Alaska Energy Authority
480 West Tudor Road
Anchorage,Alaska 99516
February 3,1994
Robert Hansen
Golden Valley Electric Association,Inc.
P.O.Box 71249
Fairbanks,Alaska 99707-1249
Subject:BPMC Insurance Subcommittee Meeting
AIDEA,February 10,2:00 P.M.
Dear Mr.Hansen:
As you are aware,at the BPMC meeting on January 25,1994,BPMC Chairman
David Highers appointed the following individuals to the BPMC Insurance
Subcommittee:Daniel W.Beardsley,Subcommittee Chairman,Alaska Energy
Authority;Mike Cunningham,Chugach Electric Association,Inc.;Rick Eckert,
Homer Electric Association,Inc.;Robert Hansen,Golden Valley Electric
Association,Inc.;and Ron Saxton,Ater,Wynne,Hewitt,Dodson &Skerritt.
Addresses,phone numbers and fax numbers for each of the Subcommittee
Members are attached.
Enclosed you will find a synopsis of the various insurance coverages for
Bradley Lake and the issues to discuss at 2:00 P.M.on Thursday,February 10,
1994,in the Alaska Industrial Development and Export Authority's (AIDEA)
conference room,located at 480 West Tudor Road,Anchorage,Alaska.If you
are unable to personally attend,please make arrangements for a teleconference
with Brenda Fuglestad at 561-8050.If possible please make those
arrangements with Brenda by 4:00 P.M.on Wednesday,February 8.Should
you have additional items to add to the Agenda please provide me with the topic
and a synopsis by Tuesday,February 8,so that the information can be provided
to all members in advance of the meeting.
Sincerely;
ann
Daniel W.Beardsley
Enclosures
Cc:David L.Highers,Chairman BPMC
Daniel W.Beardsley,Subcommittee Chairman
Alaska Energy Authority
480 West Tudor Road
Anchorage,Alaska 99503
Phone:561-8050
Fax:561-8998
Mike Cunningham
Chugach Electric Association,Inc.
P.O.Box 196300
Anchorage,Alaska 99519-6300
Phone:762-4778
Fax:562-0027
Rick Eckert
Homer Electric Association,Inc.
3977 Lake Street
Homer,Alaska 99603
Phone:235-3353
Fax:235-3323
Robert Hansen
Golden Valley Electric Association,Inc.
P.O.Box 71249
Fairbanks,Alaska 99707-1249
Phone:451-5602
Fax:451-5633
Ron Saxton
Ater,Wynne,Hewitt,Dodson &Skerritt
222 S.W.Columbia,Suite 1800
Portland,Oregon 97230
Phone:503-226-1191
Fax:503-226-0079
TRANSMISSION REPORTSEOOOOOIOROOIORIOK
*AIDA (FEB 83 794 14:51 )
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DATE START REMOTE TERMINAL MODE TIME RESULTS TOTAL DEPT.
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KLR-O097
He ALASKA INDUSTRIAL DEVELOPMENTAlaANDEXPORTAUTHORITY
480 WEST TUDOR *ANCHORAGE,ALASKA 99503-6690 *(907)561-8050 *FAX (907)561-8998
Please delwe-ASAP.
Mans moch |.DATE:2-3-44
TIME:
NOTICE:This facsimile contains confidential information that is being transmitted to and is
intended only for the use of the recipient named below.Reading,disclosure,discussion,
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recipient or his or her employees or agents is strictly prohibited.If you have received this
facsimile in error,please immediately destroy it and notify us by telephone,(907)561-8050.
PLEASE DELIVER THE FOLLOWING PAGES TO:
Mike Conninahan
a)
TRANSMITTING FROM:RICOH FAX 1000L (907)561-8998
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DOCSMS23/p9
Alaska Energy Authority
480 West Tudor Road
Anchorage,Alaska 99516
February 3,1994
Mike Cunningham
Chugach Electric Association,Inc.
P.O.Box 196300
Anchorage,Alaska 99519-6300
Subject:BPMC Insurance Subcommittee Meeting
AIDEA,February 10,2:00 P.M.
Dear Mike:
As you are aware,at the BPMC meeting on January 25,1994,BPMC Chairman
David Highers appointed the following individuals to the BPMC Insurance
Subcommittee:Daniel W.Beardsley,Subcommittee Chairman,Alaska Energy
Authority;Mike Cunningham,Chugach Electric Association,Inc.;Rick Eckert,
Homer Electric Association,Inc.;Robert Hansen,Golden Valley Electric
Association,Inc.;and Ron Saxton,Ater,Wynne,Hewitt,Dodson &Skerritt.
Addresses,phone numbers and fax numbers for each of the Subcommittee
Members are attached.
Enclosed you will find a synopsis of the various insurance coverages for
Bradley Lake and the issues to discuss at 2:00 P.M.on Thursday,February 10,
1994,in the Alaska Industrial Development and Export Authority's (AIDEA)
conference room,located at 480 West Tudor Road,Anchorage,Alaska.If you
are unable to personally attend,please make arrangements for a teleconference
with Brenda Fuglestad at 561-8050.If possible please make those
arrangements with Brenda by 4:00 P.M.on Wednesday,February 8.Should
you have additional items to add to the Agenda please provide me with the topic
and a synopsis by Tuesday,February 8,so that the information can be provided
to all members in advance of the meeting.
Sincerely;
Da
Daniel W.Beardsley
Enclosures
Cc:David L.Highers,Chairman BPMC
Daniel W.Beardsley,Subcommittee Chairman
Alaska Energy Authority
480 West Tudor Road
Anchorage,Alaska 99503
Phone:561-8050
Fax:561-8998
Mike Cunningham
Chugach Electric Association,Inc.
P.O.Box 196300
Anchorage,Alaska 99519-6300
Phone:162-4778
Fax:562-0027
Rick Eckert
Homer Electric Association,Inc.
3977 Lake Street
Homer,Alaska 99603
Phone:235-3353
Fax:235-3323
Robert Hansen
Golden Valley Electric Association,Inc.
P.O.Box 71249
Fairbanks,Alaska 99707-1249
Phone:451-5602
Fax:451-5633
Ron Saxton
Ater,Wynne,Hewitt,Dodson &Skerritt
222 S.W.Columbia,Suite 1800
Portland,Oregon 97230
Phone:503-226-1191
Fax:503-226-0079
TRANSMISSION REPORT
BE GICIOOOCGOOOICOOK
*AIDA (FEB @3 '94 14:41 )
OK KOK OK OK OK ok ok ok le ok eK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK ele a ac ok ok ak ok OK OK Ok
DATE START REMOTE TERMINAL MODE TIME RESULTS TOTAL DEPT.
TIME IDENTIFICATION PAGES CODE
FEB @3 14:32 987 235 3313 G3ST @8722"OK 18
HSNKERKKKKEKRKXKEKEKEXKKXKKXX*KRRHKRKEKEKKKEKKEKKHEKNKKKEKKXE¥OK OR OK OK OK OK OK OK OK OK OK AK OK OK OK KOK OK AR OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK AR OK
I3B5 -3513
ALASKA INDUSTRIAL DEVELOPMENT
AND EXPORT AUTHORITY
480 WEST TUDOR *ANCHORAGE,ALASKA 99503-6690 «(907)561-8050 »FAX (907)561-8998
"Please delwer hone)Thank <noch.DATE:2-3 -4N
TIME:
NOTICE:This facsimile contains confidential information that is being transmitted to and is
intended only for the use of the recipient named below.Reading,disclosure,discussion,
dissemination,distribution,or copying of this information by anyone other than the named
recipient or his or her employees or agents is strictly prohibited.If you have received this
facsimile in error,please immediately destroy it and notify us by telephone,(907)561-8050.
PLEASE DELIVER THE FOLLOWING PAGES TO:
Kick Eckect
TRANSMITTING FROM:RICOH FAX 1000L (907)561-8998
THIS TRANSMITTAL IS FROM:"Dan Rearddsleu
NUMBER OF PACES (INCLUDING COVER PAGE):1G
HARD COPY TO FOLLOW BY:__\Regular Mail __Gourier
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DOCSMS23/p9
Alaska Energy Authority
480 West Tudor Road
Anchorage,Alaska 99516
February 3,1994
Rick Eckert
Homer Electric Association,Inc.
3977 Lake Street
Homer,Alaska 99603
Subject:BPMC Insurance Subcommittee Meeting
AIDEA,February 10,2:00 P.M.
Dear Rick:
As you are aware,at the BPMC meeting on January 25,1994,BPMC Chairman
David Highers appointed the following individuals to the BPMC Insurance
Subcommittee:Daniel W.Beardsley,Subcommittee Chairman,Alaska Energy
Authority;Mike Cunningham,Chugach Electric Association,Inc.;Rick Eckert,
Homer Electric Association,Inc.;Robert Hansen,Golden Valley Electric
Association,Inc.;and Ron Saxton,Ater,Wynne,Hewitt,Dodson &Skerritt.
Addresses,phone numbers and fax numbers for each of the Subcommittee
Members are attached.
Enclosed you will find a synopsis of the various insurance coverages for
Bradley Lake and the issues to discuss at 2:00 P.M.on Thursday,February 10,
1994,in the Alaska Industrial Development and Export Authority's (AIDEA)
conference room,located at 480 West Tudor Road,Anchorage,Alaska.If you
are unable to personally attend,please make arrangements for a teleconference
with Brenda Fuglestad at 561-8050.If possible please make those
arrangements with Brenda by 4:00 P.M.on Wednesday,February 8.Should
you have additional items to add to the Agenda please provide me with the topic
and a synopsis by Tuesday,February 8,so that the information can be provided
to all members in advance of the meeting.
Sincerely;
An
Daniel W.Beardsley
Enclosures
CC:David L.Highers,Chairman BPMC
Daniel W.Beardsley,Subcommittee Chairman
Alaska Energy Authority
480 West Tudor Road
Anchorage,Alaska 99503
Phone:561-8050
Fax:561-8998
Mike Cunningham
Chugach Electric Association,Inc.
P.O.Box 196300
Anchorage,Alaska 99519-6300
Phone:162-4778
Fax:562-0027
Rick Eckert
Homer Electric Association,Inc.
3977 Lake Street
Homer,Alaska 99603
Phone:235-3353
Fax:235-3323
Robert Hansen
Golden Valley Electric Association,Inc.
P.O.Box 71249
Fairbanks,Alaska 99707-1249
Phone:451-5602
Fax:451-5633
Ron Saxton
Ater,Wynne,Hewitt,Dodson &Skerritt
222 S.W.Columbia,Suite 1800
Portland,Oregon 97230
Phone:503-226-1191
Fax:503-226-0079
5OB-DaAb-0079
4
,
=ALASKA INDUSTRIAL DEVELOPMENTABA'AND EXPORT AUTHORITY
480 WEST TUDOR *ANCHORAGE,ALASKA 99503-6690 *(907)561-8050 »FAX (907)561-8998
Please deliuec ARC.vate:5-464"Vhenks much,-
TIME:
NOTICE:This facsimile contains confidential information that is being transmitted to and is
intended only for the use of the recipient named below.Reading,disclosure,discussion,
dissemination,distribution,or copying of this information by anyone other than the named
recipient or his or her employees or agents is strictly prohibited.If you have received this
facsimile in error,please immediately destroy it and notify us by telephone,(907)561-8050.
PLEASE DELIVER THE FOLLOWING PAGES TO:
'Roa Sax tao
TRANSMITTING FROM:RICOH FAX 1000L (907)561-8998
THIS TRANSMITTAL IS FROM:Dan RBeacdeleu
NUMBER OF PAGES (INCLUDING COVER PAGE):_\@
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