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April 20, 2018 BPMC
BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Alaska Energy Authority,Anchorage,Alaska April 20,2018 "xCU 1.CALL TO ORDER Chair Janorschke called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:12 a.m.A quorum was established. 2.ROLL CALL FOR COMMITTEE MEMBERS Cory Borgeson (Golden Valley Electric Association [GVEA]);Bryan Carey (Alaska Energy Authority [AEA]);Lee Thibert (Chugach Electric Association [CEA]);Tony Izzo (Matanuska Electric Association [MEA]);Mark Johnston (Anchorage Municipal Light &Power [ML&P]);John Foutz (City of Seward);and Bradley Janorschke (Homer Electric Association [HEA)). 3.PUBLIC ROLL CALL Jocelyn Garner,Brenda Applegate,Tom Erickson,Carmen Noble,Teri Webster,Brandi White, Katie,Conway (AEA);Mel Hutchinson (phone)(Alaska Power Association);Eric Myers (ATC); Sherri Highers (phone),Matt Clarkson,Brian Hickey,Josh Resnick,(CEA);Brian Bjorkquist (Department of Law);Steve Cannon,Bob Day,Larry Jorgensen,Alan Owens (phone)(HEA); Kirk Gibson (McDowell Rackner Gibson,PC);David Pease (phone);Ed Jenkins,Tony Zellers (MEA);Molly Morrison (ML&P);T.W.Patch (Public),Bernie Smith (Public);and Ladonna Lindley (Accu-Type Depositions). 4,PUBLIC COMMENTS None. 5.AGENDA APPROVAL MOTION:Mr.Foutz made a motion to approve the amended agenda,moving Item 7D. Executive Session to after Item 11.,and adding Soldotna SVC Switch Replacement after 7C.Motion seconded by Mr.Johnston. The agenda was unanimously approved as amended,moving Item 7D.Executive Session to after Item 11.,and adding Soldotna SVC Switch Replacement after 7C. 6.PRIOR MINUTES-Feb.2,2018;March 5,2018 MOTION:Mr.Johnston made a motion to approve the Minutes of February 2,2018.Mr. Thibert seconded the motion. The motion passed unanimously. MOTION:Mr.Thibert made a motion to approve the Minutes of March 5,2018.Mr. Johnston seconded the motion. The motion passed unanimously. 7.NEW BUSINESS BPMC Minutes 4/20/18 Page |of 5 A.Battle Creek Construction Update Mr.Carey informed several barges have arrived at Bradley containing GMC Contracting construction equipment.Three additional barges are anticipated within three weeks during the next high tide cycle.The dam road has been cleared of snow.A water well has been installed in place.The camp is expected to be established by May 4",2018,in preparation for the crew members.The test blast is scheduled for May 10',2018,and road construction commences thereafter. Mr.Carey provided the Draft Monthly Summary Report.The report will be delivered monthly to the Budget Committee.The Monthly Summary Reports are also available for utility access on the SharePoint Site,which contains the Daily Reports,Weekly Progress Reports,Monthly Schedule of Values,including the percent complete,and FERC (Federal Energy Regulatory Committee)Monthly Reports. Mr.Carey recommended a construction kick-off meeting be held at Bradley Lake during theregularlyscheduledBPMCmeetingonJune15",2018.Chair Janorschke informed the suggestion will be discussed under Item 11. B.Bradley Operator RFP Update Mr.Carey noted a few proposals for the Bradley Operator were received and have been forwarded to the Evaluation Committee.The Evaluation Committee is comprised of two members from AEA,a State employee,and two utility members.The scoring and evaluations are anticipated to be completed in about a week,after which the Procurement Office will send a Notice of Intent to the top-ranked proposer.The proposals will become public after the issuance of the Notice of Intent in early May. Cc.Resolution 2018-01 -Battle Creek Project Share Allocation Mr.Gibson noted the copy of Resolution 2018-01 has been provided in member packets.He explained Resolution 2018-01 references all items in Resolution 2017-02 with respect to the share allocation process and is devoid of verbiage regarding the earlier parts of the project.The intent is to use Resolution 2018-01 on an annual basis for the purposes of share allocation.He believes it provides a concise,forward-looking perspective and reflects the decisions made by the BPMC.Mr.Gibson recommends approval of Resolution 2018-01. MOTION:Mr.Izzo made a motion to approve Resolution 2018-01,Attachment 1,and Exhibit A.Mr.Thibert seconded the motion. Mr.Izzo requested clarification regarding Attachment 1,page four,Item C.3.BCD Project Cost Responsibility.He does not believe the paragraph is consistent with the resolution passed at the previous meeting assuring the O&D Committee would perform a study of the impacts of the BCD Project to the Bradley Lake Project. Mr.Gibson advised the only change reflected in this paragraph pertains to the approval of the results of the study.Mr.Gibson conveyed this resolution is not time sensitive.He recommended members thoroughly review the resolution before a vote is taken. Mr.Izzo suggested this issue be addressed during the O&D Committee item of the meeting. BPMC Minutes 4/20/18 Page 2 of 5 Mr.Thibert reported a typographical error,an extra word,on page three of three,under the third Be It Further Resolved,"That a Non-Participating Purchaser has no restriction to on its ability.” Mr.Gibson recommended deleting the word on. MOTION:Mr.Johnson made a motion to table action on Resolution 2018-01,Attachment 1,and Exhibit A,until the next BPMC meeting.Mr.Thibert seconded the motion. Mr.Thibert requested Mr.Gibson provide CEA's counsel with the new resolution and the previous resolutions for review and comparison.Mr.Gibson agreed. A roll call vote was taken,and the motion to table action on Resolution 2018-01, Attachment 1,and Exhibit A,until the next BPMC meeting passed unanimously. D.Soldotna SVC Switch Replacement. Mr.Cannon,HEA Meter/Apparatus Superintendent,reported a switch is in need of replacement due to a history of maintenance problems.Mr.Cannon informed the quote from Royal for the switch and shipping is approximately $10,000.The estimated total including labor costs is $19,309.Written authorization from the BPMC is required to proceed. MOTION:Mr.Borgeson made a motion to proceed with the switch replacement at the Soldotna SVC.Mr.Foutz seconded the motion. Mr.Thibert inquired as to any timing considerations or utility coordination for the outage.Mr. Cannon advised the switches will be delivered in 14 weeks and the SVC will stay online during the replacement. A roll call vote was taken,and the motion to proceed with the switch replacement at the Soldotna SVC passed unanimously. Mr.Cannon added the RCM study for the upgraded SVC is complete.Next steps are to meet with CEA to establish the same maintenance practices for the Dave's Creek and the Soldotna SVC. 8.REPORTS A.Budget to Actual Report Ms.Garner reviewed the Bradley Lake Budget Report dated through February 2018.Two additional pages have been added to show the Battle Creek administrative costs.The capital projects are coming in under budget.The O&M budget is also coming in under budget. Mr.Thibert requested an update on the purchase of the flatbed with plow,the loader,the ambulance,and the refurbishing of the Battle Creek bridge.Mr.Day reported the ambulance has been purchased and is in Homer.Additional facilities are being added.The flatbed has been purchased and is due June 1%.Mr.Day informed work on the Battle Creek bridge is unlikely to occur because of the construction activities.Mr.Day believes the overhead line maintenance will continue to remain under budget. B.O&D Report Mr.Day presented the O&D Report provided in member packets and discussed updated information.The AGC setting of +/-.2 would be the new consistent trigger point for constant BPMC Minutes 4/20/18 Page 3 of 5 frequency.The O&D Committee will conduct an analysis and recommendation of the Emerson proposal,which would place a controller at Bradley allowing for dynamic dispatching.The changes to the work rules have been approved by the O&D Committee and AEA's legal representatives.The water and power reports are reviewed on a regular basis.Construction activities at Battle Creek have increased. Mr.Day informed the O&D Committee discussed the 4%O&M cost allocation and cannot provide an opinion as to the pricing being high,low,or on target because the O&D has no comparables and no data to perform a study.The O&D Committee will conduct a cost allocation study in the future when impacts of the Battle Creek operation can be measured.The O&D Committee recommends the O&M cost allocation study be tabled. Mr.Day discussed the guidance O&D is providing to the operator regarding tracking the ongoing support labor and use of Bradley assets during construction.HEA has established a separate account for Battle Creek labor activities and charges. Mr.Izzo requested a timeline,scope,and cost parameters for the O&M cost allocation study beestablishedbytheBPMC.Mr.Thibert agreed.Chair Janorschke indicated the request will be addressed during committee assignments. Mr.Borgeson commented the cost of 4%of the Bradley Lake Project O&M budget is approximately $183,000 a year.He believes the cost of the study will exceed that amount.Mr. Borgeson supports conducting a study to identify the actual range of the O&M costs. Cc.Operators Report Mr.Day directed members to the Operator's Report provided in the packet.Operations and conditions are normal with no issues.Mr.Day displayed and reviewed pictures of the current work at Battle Creek.Work with Emerson is ongoing regarding the fish water control automation project.The road to the dam and the road to the dock are closed to public use during construction for the next two years.This information has been published in the newspaper and included within bills.Efforts are underway to notify the Harbor Master and FAA regarding the closures.Mr.Day is very pleased with the extensive collaboration Orion has exhibited,including use of their barge to transport multiple heavy items,equipment,and trucks. The transport of the loader provided an estimated savings of $18,000. Mr.Day informed the second purchase of the LED light improvement has occurred.The normal inspections and monthly safety meetings were held.The quarterly employee update was facilitated by Chair Janorschke. 9.COMMITTEE ASIGNMENTS Chair Janorschke directed the O&D Committee to conduct and complete an O&M cost impact study related to Bradley Creek within a year after water flow commences. Chair Janorschke directed the O&D Committee to revisit the Emerson module discussed three years ago,and provide an updated estimate and recommendation at the June 15 meeting. 10.MEMBERS COMMENTS Mr.Thibert expressed appreciation to Mr.Day for the excellent report and great coordination with Orion. BPMC Minutes 4/20/18 Page 4 of 5 Mr.Borgeson expressed appreciation for the diligent work occurring.He supports conducting the June BPMC meeting at the facility. Mr.Johnston echoed support for conducting the June BPMC meeting at the facility. Mr.Foutz echoed support for conducting the June BPMC meeting at the facility and welcomedMr.Cannon to his first BPMC meeting. Mr.Carey stated he is happy construction is moving forward. Chair Janorschke expressed appreciation for the excellent current efforts. 11.NEXT MEETING DATE MOTION:Mr.Johnston made a motion to hold the June 15,2018 meeting at Bradley Lake facilities and cancel the October 19,2018,meeting.Mr.Borgeson seconded the motion. MOTION:Mr.Borgeson made a motion to amend,cancelling the May 18,2018 meeting as well.Mr.Thibert seconded the motion to amend. Aroll call vote was taken,and the motion to amend,cancelling the May 18,2018 meeting passed unanimously. A roll call vote was taken,and the amended motion to hold the June 15,2018 meeting at Bradley Lake facilities and cancelling the May 18,and October 19,2018 meetings passed unanimously. MOTION:Mr.Johnston made a motion to go into Executive Session to discuss administrative adjudications dealing with Bradley lands.Mr.Foutz seconded the motion. Motion passed without objection. 12.Executive Session:11:05a.m.Bradley Land Update The Committee reconvened its regular meeting at 11:18 a.m. 13.ADJOURNMENT There being no further business for the committee,the meeting adjourned at 11:18 a.m. BY: BradleyJanorschke,ated Ye fhy erJanetReiserAlaska-Energy Authority,Secretary BPMC Minutes 4/20/18 Page 5 of 5 11. 12. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING Friday,April 20,2018 10:00 A.M. Alaska Energy Authority,Board Room 813 W.Northern Lights Boulevard,Anchorage,Alaska To participate VIA TELECONFERENCE-1-888-585-9008 -Conference room code 467-050-126 AGENDA CALL TO ORDER ROLL CALL FOR COMMITTEE MEMBERS PUBLIC ROLL CALL PUBLIC COMMENTS AGENDA APPROVAL PRIOR MINUTES Feb.2,2018;March 5,2018 NEW BUSINESS A.Battle Creek Construction Update .AEA B.Bradley Operator RFP update AEA C.Resolution 2018-01 -Battle Creek Project Share Allocation K.Gibson D.Seldotna SVC Surtch Molace ment Executive Session -Bradley Lands Update AEA REPORTS A Budget to Actual Report Budget Subcommittee B O&D Report C Operators Report HEA COMMITTEE ASSIGNMENTS MEMBERS COMMENTS NEXT MEETING DATE -Friday,May 18,2018 ADJOURNMENT BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Alaska Energy Authority,Anchorage,Alaska February 2,2018 1.CALL TO ORDER Chair Janorschke called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:31 a.m. 2.ROLL CALL FOR COMMITTEE MEMBERS Brad Janorschke (Homer Electric Association [HEA]);Janet Reiser (Alaska Energy Authority [AEA]);Lee Thibert (Chugach Electric Association [CEA]);Tony Izzo (Matanuska Electric Association [MEA]);Mark Johnston (Anchorage Municipal Light &Power [ML&P]);Cory Borgeson (Golden Valley Electric Association [GVEA]);and John Foutz (City of Seward). 3.PUBLIC ROLL CALL Amy Adler,Brenda Applegate,Tom Erickson,Jocelyn Garner,David Lockard,Carmen Noble, Kirk Warren,Teri Webster,Brandi White (AEA);Josh Resnick,Burke Wick (CEA);Brian Bjorkquist (Department of Law);Leo Quiachon (phone)(GVEA);Bob Day,Larry Jorgensen (HEA);Kirk Gibson (McDowell Rackner Gibson,PC);Emily Hutchinson (phone),Tony Zellers (MEA);Molly Morrison,Jeff Warner (ML&P);Bernie Smith (Public);and Ladonna Lindley (Accu-Type Depositions). Chair Janorschke welcomed Ms.Reiser to the Bradley Lake Project Management Committee. 4. PUBLICCOMMENTS - None. , 5."AGENDA APPROVAL MOTION:Mr.Johnston made a motion to approve the agenda.Motion seconded by Mr. Thibert. Mr.Gibson requested to amend the agenda by adding an Executive Session to dicuss financial considerations with respect to Battle Creek. The amended agenda was unanimously approved to include the Executive Session to discuss financial considerations with respect to Battle Creek. 6.PRIOR MINUTES -Dec.1,2017;Dec.6,2017;Dec.13,2017 MOTION:Mr.Johnston made a motion to approve the minutes of December 1 and December 6,2017.The motion was seconded by Mr.Izzo. Chair Janorschke informed he will provide Ms.Webster with non-material changes,including the correct spelling of names. DRAFT BPMC Minutes 2/2/18 Page 1 of 5 Motion passed unanimously. MOTION:Mr.Johnston made a motion to approve the minutes of December 13,2017. The motion was seconded by Mr.Izzo. Chair Janorschke informed he will provide Ms.Webster with correct spelling of names. MOTION:Mr.Thibert made a motion to modify the second paragraph on page two of two to reflect the intent and decision at the meeting,from,"Once ML&P shares are allocated to HEA then the shares from the non-participating utility GVEA (16.9%)will be putina pool for the participating utilities and will be divided up pro rata according to each Battle Creek participating utilities capacity percentages,”to:"The non-participating utility, GVEA (16.9%),will be put in a pool for the participating utilities and will be divided up pro rata according to each Battle Creek participating utilities original project capacity percentages.All original ML&P Battle Creek shares are allocated to HEA.These allocations were done by agreement.”Motion seconded by Mr.Johnston.Motion to amend the minutes passed unanimously, Mr.|zzo informed the reference to Chair Thibert iin the minutes could be corrected to read ActingChairThibert. Motion to approve the amended minutes of December 13,2017 passed unanimously. 7. NEWBUSINESS , , A.Battle Creek Diversion Project Update . Mr.Gibson recommended the resolution passed during the December 13,2017 meeting be modified to provide clarity for future consideration and to reflect the will of the Committee regarding the rights of shares that transfer.Chair Janorschke requested Mr.Gibson bring anamendmenttotheresolutionbeforetheCommitteeatthenextmeeting.Ms.Reiser informed the Battle Creek Diversion Project updateis providedin the memberpackets.«=. Chair Janorschke noted one item of previous discussion regarded the participants being fully engaged and augmenting AEA's project management.Chair Janorschke indicated HEA could provide a project manager onsite this year at cost and run it through the Battle Creek Project. Mr.Thibert,Mr.Borgeson,Mr:Izzo and Mr.Foutz expressed support for the proposal.Chair Janorschke advised HEA will proceed with the proposal of providing an onsite project manager. The intent is for the representative to report to the BPMC. Mr.Borgeson requested a copy of the Battle Creek Orion Marine contract be emailed to BPMC members. B.West Fork Upper Battle Creek FY18 Budget Ms.Garner reported members were provided the Bradley Lake Project budget and amendment, which includes costs for the Battle Creek Project that are outside of the financing.She informed the costs will be paid for by the Battle Creek participating utilities.Ms.Garner reviewed the budget amendment. DRAFT BPMC Minutes 2/2/18 Page 2 of 5 MOTION:Mr.Thibert made a motion to approve the second amendment to the fiscal year 2018 Bradley Lake Hydroelectric Project budget.This includes an increased budget of $968,642 for debt services payments and administrative costs of the West Fork Upper Battle Creek project to be paid for by the Battle Creek Participating Utilities.Mr. Johnston seconded the motion. Mr.Thibert requested an explanation of the increase in debt service for Battle Creek line item. Ms.Garner informed the $895,825 is the first interest payment due on July 1,2018.Mr.Thibert asked what the timeframe for the $43,000 Battle Creek administrative costs encompasses.Ms. Garner indicated that line item covers the six months from the start of finance on December 26, 2017 through June 30,2018.The FY19 budget will include the full annual cost. Mr.Borgeson requested explanation of how the CREBs (Clean Renewable Energy Bonds) refund will reduce the interest owed.Ms.Applegate gave a description of the process for receiving the CREBs subsidy credit.The filings will be completed by U.S.Bank and are due 45 days prior to the interest payment date.The CREBs subsidy credit is subject to sequestration. A roll call vote was taken,and the motion passed unanimously. C.Surplus Bradley Equipment me eSMr.Day reported on the State's current surplus equipment at Bradley.He requested membersgivedirectionastothemethodologyofdisposalofthesurplusitems.Mr.Day suggested following the surplus rules used internally by HEA,which includes selling smaller items on Craigslist and possibly conducting an auction for the larger items.Mr.Erickson noted disposal of any assets owned by AEA will have to be completed by AEA and could include an auction.Mr.Bjorkquist informedd proceeds from the sale of surplus BradleyassetsarerolledbackintotheBradleybudget.©Ms.Reiser recommended Mr,Erickson review the current disposal procedures and promptly work with Mr.Day on a disposal plan.Mr.Thibert and Mr.Borgeson agreed with the recommendation for Mr.Day to work with Mr.Erickson on a disposal plan.The final disposal plan does not need to be brought in front of the Committee.Mr.Izzo suggested the planning begin without delay to capture barging opportunities. 8.REPORTS °O&D REPORT --ML&P Chair Janorschke expressed appreciation to Mr.Warner for the advanced written copy of the O&D Report.Mr.Warner informed the O&D Committee meets monthly.Recent meeting discussions have been focused on system issues,particularly the Bradley spin contribution. The ongoing discussions and determinations will encompass the findings of the IOC and the System Studies Subcommittee (SSS)regarding different resources within the system.Mr. Warner advised the data received from the SSS indicates Bradley Lake does not have governor response before minimum frequency is reached.Mr.Warner noted the utilities do not rely heavily on Bradley spin for the purposes of the two to five-second range.Bradley spin is relied on to respond in the 10-minute recovery period time. DRAFT BPMC Minutes 2/2/18 Page 3 of 5 Mr.Warner reviewed the upgrades to the fish water automation.The next step is to provide the software to control the fish water release.A bid has been received from Emerson for $157,000. The O&D directed HEA to move forward with the work.Mr.Warner believes the project is worthwhile and anticipates the automation will reduce the current 30 percent over-release. Mr.Warner stated preliminary discussions regarding the project O&M cost study allocation have occurred and will be addresed again at the next meeting.Mr.Warner indicated the request from CEA for a day-ahead schedule has been very helpful and appreciated.Each participant has the ability to review the schedule and determine if opportunities exist to buy capacity from another participant.Mr.Warner reported a preliminary budget discussion will occur at the next meeting. e OPERATORS REPORT Mr.Day directed the members to the Operator's Report provided in the packet and noted it was prepared on January 19"in anticipation of the meeting that was cancelled.Mr.Day informed the uninterruptible power system (UPS)experienced a significant problem at the beginning of January.After three days of system repair,the UPS is back in full operation.Mr.Day stated the LED lights in the power house are performing very well.He noted the occupancy sensor function translates to less station service and the electricity savings over two years is expected to cover the expenditure.Mr.Day informed additional lighting will be included jin next year'sbudget.. Mr.Thibert asked if the operator is working with the O&D Committee regarding solutions to the issues with the governor.Mr.Day stated review with Emerson has occurred to ensure proper operation.Mr.Day believes the inherrent response delay from Bradley Lake is due to the physical characteristics and the paradoxical motion of theinitial reduced pressure at the needlefaceuntilwateraccelerationoccurs.Bradley Lake is considered comparable to a 27-megawatt gas turbine spin.The SSS committee is reviewing the validity of the comparison. 9.COMMITTEE ASIGNMENTSChairJanorschkeinvitedallinterested parties to the Battle Creek Project kick-off on Thursday. He informed the Finance Committee will review the 2019 Draft Bradley Lake Budget on February 16,2018,which will come before the full BPMC at the next meeting.10.MEMBERS COMMENTS Mr.Izzo expressed appreciation to AEA staff for their efforts on CREBs and the Battle CreekProject. Mr.Thibert expressed appreciation to Ms.Garner,Ms.Applegate,Mr.Warner,and Mr.Day for the preparation of their respective reports. Ms.Reiser expressed appreciation to members for their patience while she learns the details of the operation. Chair Janorschke expressed appreciation to Ms.Webster for her efforts. 11.NEXT MEETING DATE The next meeting is a scheduled on Monday,March 5,2018. DRAFT BPMC Minutes 2/2/18 Page 4 of 5 MOTION:Mr.Johnston made a motion to go into Executive Session to discuss confidential financial conditions with respect to Battle Creek.Mr.Foutz seconded the motion. Motion passed without objection. 11.5 EXECUTIVE SESSION:11:31 a.m. The Committee reconvened its regular meeting at 11:43 a.m. 12.ADJOURNMENT There being no further business for the committee,the meeting adjourned at 11:43 a.m. BY: Brad Janorschke,Chair Attest: Janet Reiser Alaska Energy Authority,Secretary - DRAFT BPMC Minutes 2/2/18 Page 5 of 5 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Alaska Energy Authority,Anchorage,Alaska March 5,2018 1.CALL TO ORDER Chair Janorschke called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 1:30 p.m.A quorum was established. 2.ROLL CALL FOR COMMITTEE MEMBERS Brad Janorschke (Homer Electric Association [HEA]);Bryan Carey (Alaska Energy Authority[AEA]);Lee Thibert (Chugach Electric Association [CEA]);Tony Izzo (Matanuska ElectricAssociation[MEA]);Mark Johnston (Anchorage Municipal Light &Power [ML&P]);Leo Quiachon (Golden Valley Electric Association [GVEA]);and John Foutz (City of Seward). 3.PUBLIC ROLL CALL Amy Adler,Jocelyn Garner,Janet Reiser,Jake Tibbe,Kirk Warren,Teri Webster,Brandi White,Rich Wooten (AEA);Sherri Highers (phone),Mark Johnson,Josh Resnick,Burke Wick (CEA);Brian Bjorkquist (Department of Law);Ron Woolf (GVEA);Bob Day,Emily Hutchinson (phone),Larry Jorgensen (HEA);Kirk Gibson (McDowell Rackner Gibson,PC);Tony Zellers (MEA);Molly Morrison,Jeff Warner (ML&P);Bernie Smith (Public);and1 Sunny Morrison (Accu-TypeDepositions).* 4.PUBLIC COMMENTS The agenda was un inimously approved.6.NEW BUSINESS. MOTION:A motion wassma le to begin with Item 6C.because representatives from AEA had not yet arrived. The motion passed without objection. Cc.Battle Creek Update Mr.Carey informed Orion Marine Group has prepared an original project submittal sheet.The project could be expected to be completed by fall of 2019.A kick-off meeting with Orion Marine Group and utilities is scheduled for March 21,2018.The AEA share-point site for Battle Creek is available for utilities,Orion,DOWL,and AEA to retrieve information,including daily reports, DRAFT BPMC Minutes 3/5/18 Page |of 5 summaries of weekly meetings,monthly reports to Federal Energy Regulatory Commission (FERC),and accounting information.The first barge could go across in April.Blasting could begin after the final approvals are received in May or June. Mr.Carey discussed the land transfer request from Department of Natural Resources (DNR)to Bureau of Land Management (BLM)was placed a couple of years ago.He noted the current status has been reported to be moving along very quickly and the hope is the land transfer could occur very soon.A further update could be provided in executive session. Chair Janorschke noted the need for an executive session regarding this issue during the meeting.Mr.Izzo agreed. Mr.Quiachon requested the schedule of values relative to schedule be reported on a monthlybasis.Mr.Carey noted all the information will be available forreview on the share-point site,including current pay requests and projected total expenditures Chair Janorschke requested an update to the scope of work for Ron Rebenitsch.Mr.JorgenseninformedascopeofworkhasbeenpreparedforMr.Rebenitsch and a consulting agreementisanticipatedtobesignedthismonth.Mr.Rebenitsch iis expected to spend time onsite,monitorprojectcommunicationsamongAEA,the engineer,the contractor,Orion Marine Group,andreporttotheBPMConissuesthatmateriallyaffectthefinancialinterestoftheBPMC.Heisexpectedtoobserve,photograph,and report on the work iin-progress,compliance,andconformancetocontractplansandspecifiications.Mr.Rebenitschis expected to preparemonthlyreportsfortheBPMC,as well as make available weekly and daily reports.Heisexpectedtoverifyandprovideopinionastochangeorders.The role does not include anyprojectmanagementresponsibilitiesorauthority. dministrative costs of $168,000 seem high.He askedifadministrativefeeshavebeenincludedonotherprojects.Mr.Carey stated no other projectshavehadadministrativefees.The previous projects were considerably smaller and runningthroughtheoperator.Battle Creek requires additional financials.Once construction iscompleted,procurement'costs;for example,will be eliminated.Ms.Garner informed the administrative fees for Battle Creek are only for accounting and procurement.The legal fees are separate and Mr.Carey's time gets charged directly to the construction project.Ms.Reiser stated the list of administrative fee components is available for review. Mr.Foutz asked where the fees for Mr.Rebenitsch are represented in the budget.Chair Janorschke indicated fees for Mr.Rebenitsch are not included in this budget.Mr.Carey informed budget amendments can be presented after April 1%. MOTION:Mr.Thibert made a motion the BPMC approve the FY 2019 Operating and Capital Budget as presented.Mr.Johnston seconded the motion. A roll call vote was taken,and the motion passed unanimously. DRAFT BPMC Minutes 3/5/18 Page 2 of 5 B.FY18 Battle Creek Budget Amendment Ms.Garner reported members were provided the third amendment to the FY18 Budget,which only affects the Battle Creek participants.Ms.Garner reviewed the budget amendment.The Finance Committee has reviewed the amendment and offers support. Mr.Thibert asked if the first draw can be cash rather than from the loan.Ms.Garner agreed that option is available for discussion. MOTION:Mr.Thibert made a motion the BPMC approve the third amendment to the FY 18 Bradley Lake Hydroelectric Project Budget.This includes an increased budget of$164,699 for the purchase of two trucks,an increase in debt service payments,and anincreaseincapitalreservecontributionfortheWestForkUpperBattleCreekProjecttobepaidforbytheBattleCreekparticipatingutilities.Mr. A roll call vote was taken,and the motion pass D.Battle Creek Share Reallocation Procedures Mr.Gibson informed members have been provided a memo delineating the changes throughoutResolution2017-02.Mr.Gibson reviewed the updates.»-He requested members assess thechangestoensurecompletion.Mr.Gibson recommended the amendments be voted on at the next meeting. E.Bradley Operator RFP update Mr.Carey noted AEA \h'several tility 1re ves.on 'the scope and evaluationcriteriaoftheOperator|RFP.Questions have been received from possible proposers and havebeenforwardedtothecontractingprocurementdepartment.Responses could be sent outwithintwoweeks.The Evaluation Committeeis expected to be comprised of five members.Three would be from the State."Mr.Carey recommends one of the knowledgeable members notbefromtheRailbeltandsuggestedonefromSEAlaska.The Notice of Intent to AwardisestimatedtobepreparedJune1%.If thereis a new operator,that supervisor would need toarriveatBradleybySeptember4°to shadow the current operators.Mr.Carey informedJanuary1,2019is the date the new operator will take over 100%or the existing operator will Mr.Carey requested a,motion be passed approving AEA's expenditure of up to $5,000 from theFY18BudgetforadministrativeexpensesforoperatorRFPevaluation. Mr.Foutz agreed with having a non-Railbelt engineer serve on the Evaluation Committee.He suggested the person could be from Alaska Village Electric Cooperative (AVEC)or Kodiak Electric.Mr.Thibert does not believe representatives from AVEC would have the desired expertise.He supports the process. MOTION:Mr.Carey made a motion the BPMC approves AEA to expend up to $5,000 from the FY18 Budget FERC 920 and 930 administrative expenses for operator RFP evaluation. Mr.Thibert seconded the motion. A roll call vote was taken,and the motion passed unanimously. DRAFT BPMC Minutes 3/5/18 Page 3 of 5 Chair Janorschke asked if the BPMC operating cost will be doubled during the last quarter of the year because of the potentially new operator beginning September 1.Mr.Carey informed if there is a new operator,one or two people will be on location and would require some type of budget amendment. F.Soldotna SVS O&M Agreement Mr.Gibson informed he prepared the Soldotna SVS O&M Agreement in member packets from the discussions between HEA,AEA,and CEA.Mr.Gibson informed all the parties have reviewed and accepted the agreement.He specifically discussed Mr.Foutz'suggestion of including a mutually agreeable termination clause,whereby a party mutually agrees to exit with a two-year notice.Mr.Gibson advised CEA no longer handles the Soldotna SVS fieldoperation.HEA has been operator as of January 1%.Mr,Gibson stated the BPMC-approveddocumentwillbeusedasastandardizedtemplatefortheDavesCreekSVS. Mr.Thibert requested to include a similar clause.use Lin the O&M agr ement.Mr.Gibsonagreedandbelievesitwouldbeausefulstandarization. MOTION:Mr,Foutz made a motion to appr ve the existing Soldotna SVS O&MAgreement,as amended to reflect a termination clause that.allows fora two-year noticebyeitherpartytoterminatetheagreement.Mr.Thibert seconded the motion.A roll call vote was taken,and the motion passed unanimously. Mr.Gibson reiterated his intention to bring forward the Daves SVS Agreementis a similar formfortheCommittee's review.and approval. Mr.Foutz asked if the costs of this agreement are retroactive.”Chair Janorschke indicated costsareretroactive.He expressed appreciation to all parties involved in this effort. 7.REPORTS 0&D REPORT -ML&P Mr.War viewed the system events and repairs.The current 27 megawatts of spin allocation at Bradley Lake will be maintained until the spin quality study reveals a finding.Thepurchaseorderto.Emerson was issued on February 28"for the fish water automation project.The projectis anticipated to be commissioned |in the spring of 2018.Mr.Warner informed AEA and the utilities met with Orion on February 8"to discuss the previously reviewed construction schedule and access to the share-file site.Mr.Warren noted more discussion will occur with members of the BPMC regarding the project O&M cost allocation per Resolution 2017-02.Mr.Warner noted the O&D has an understanding the 4% O&M agreed to in the resolution will begin once water goes through the pipe.He requested clarification if the understanding is inaccurate so discussion can occur.The O&D will further examine the creation of an operator's accounting for the time spent on the Battle Creek Diversion project.The operator could potentially use discretion for de minimis work that may occur related to Battle Creek Diversion.The budget was reviewed at the meeting and the results were presented today. B.OPERATORS REPORT DRAFT BPMC Minutes 3/5/18 Page 4 of 5 Mr.Day directed the members to the Operator's Report provided in the packet.There was approximately 9,000-acre feet of inflow during January and no inflow in February.The operating system at Bradley was rebooted and progress is being made on the resultant issues found.A meeting with Emerson occurred to kick-off the fish water control automation project. The ambulance and half-ton pick-up truck have been purchased and received in Homer.Orion Marine Group is expected to come to Battle Creek for an orientation visit Friday.The units have been primarily running well and have been readily available.A new maintenance management system is being implemented and will be an improvement. 8.COMMITTEE ASIGNMENTS None. MOTION:A motion was made to go into Executive Session to discuss legal issues andstrategyrelatedtoobtainingconveyanceoffederallands.Mr.Izzo seconded the motion. Motion passed without objection. 8.5 EXECUTIVE SESSION:2:22 p.m.The Committee reconvened its regular meeting t 2:31 p.m. 9.MEMBERS COMMENTS Mr.Thibert expressed appreciation to the 08D Committee :and Budget Committee for theirdiligenceinpreparingfortoday's meeting.Mr.Izzo added appreciationto Ms.Garner,staff,and the Finance Committee for preparations oftoday's meeting.«ay Mr.Johnston echoed previous comments.Mr.Foutz added Mr:Gibson to the list of appreciatChairJanorschkeechoedpreviousstatementsofappreciation and believes the effortsin beingwell-preparedcontributed to a smooth meeting.10.NEXT ME TING DATE.4 The next meeting is a scheduled on Friday,April 20,2018.11.ADJOURNMENT There being no further business for the committee,the meeting adjourned at 2:34 p.m. BY: Brad Janorschke,Chair Attest: Janet Reiser Alaska Energy Authority,Secretary DRAFT BPMC Minutes 3/5/18 Page 5 of 5 West Fork Upper Battle Creek Update Barges with construction equipment arrived at Bradley this week.Equipment will be clearing brush and grading a pad for the installation of the contractor construction camp.Camp will be able to accommodate up to 50-60 people though not all the space will be needed this year. Once camp pad prepared then equipment,will be used to set up camp (arriving late April)and be clearing snow on the road up to the new Battle Creek access road. The test blast is scheduled for May 10.This blast is important for contractors to know all procedures,submittals,and rock quality for the frequent blasting to occur. A draft monthly summary report was prepared by AEA and sent to Budget subcommittee members.Content appears good and the report (attached)will be sent to Budget subcommittee members monthly and will be available on the Battle Creek SharePoint site. West Fork Upper Battle Creek Monthly Cost Summary LAR |PIP _DIV OUT ELE BID@PrevioustoDatemCurrentPeriod=m Projected Remaining &Contract PPE March 2018 Millions of Dollars Feature Group Contract Previous to Current Period Total to Projected Projected Final CostDateDateRemainingVariance General (GEN)$9.807 $1.395 $0.911 $2.306 $7.500 $9.807 $0.000 Lower Access Road (LAR)$2.644 $0.000 $0.000 $0.000 $2.644 $2.644 $0.000 Upper Access Road (UAR)$8.159 $0.000 $0.000 $0.000 $8.159 $8.159 $0.000 Pipeline (PIP)$10.688 $0.000 $0.000 $0.000 $10.688 $10.688 $0.000 Diversion (DIV)$2.158 $0.000 $0.000 $0.000 $2.158 $2.158 $0.000 Outfatl (OUT)$1.292 $0.000 $0.000 $0.000 $1.292 $1.292 $0.000 Electrical (ELE)$1.728 $0.000 $0.000 $0.000 $1.728 $1.728 $0.000 Bid Total (BID)$36.476 $1.395 $0.911 $2.306 $34.169 $36.476 $0.000 Owners Costs (OWN)$4.763 $0.211 $0.007 $0.218 $4.545 $4.763 $0.000 Total (TOT)$41.239 $1.606 $0.918 $2.524 $38.715 $41.239 $0.000 Contract Cost vs.Estimate at Completion $45 S4L.239| $40 $36.476 r ry$35 i " k"@ $30 i i s i =$25 r 2 :=$20 ia:!$15 $9.807 $10.688 i $10 $8,159 r ;r Fr f i $4.763$5 | $2.644 l |$2.158 $1,292 $1.728 i rgoLtey_ane aa im co a L q je GEN UAR WN TOT !Monthly Highlights: Orion Marine Group (OMG)is proceeding with pre-construction planning,permits,and ordering equipment and materials.Draft Bear Safety,Fuel and Hazardous Substrances,and Sediment and Erosion Controls plans have been sent to agencies for comment as required in the FERC amendment.A Kick-off meeting was held with project team members from OMG,DOWL,Utilities,and AEA.Schedule and critical construction paths were discussed to enabie activities to move forward quickly and efficiently.In April multiple barges will arrive at Bradley,camp area will be cleared,and camp setup. 201803 WFUBC ProgressCostSummary.xlsx 4B Bradley Lake Operator Update The Bradley Lake Operator Request for Proposal (RFP)were due April 17.AEA did not received any requests for a site visit. An evaluation committee will evaluate &score the proposals.A summary of the evaluation criteria is: Experience 20% Turnover Plan 10% Operating Plan 30% Alaska Bidder Pref 10% Price 30% Once the top proposer is selected AEA will issue a Notice of Intent (NOI).At this time the proposals become public.Following the NOI AEA will negotiate the final contract.Prior to executing the contract AEA shall present it to the BPMC for its review and approval. RESOLUTION NO.2018-01 OF BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE Battle Creek Diversion Project Share Allocation Process Introduction:The Bradley Lake Project Management Committee ("BPMC')is developing a project to divert the water flows of Battle Creek into Bradley Lake to increase the water for use by the Bradley Lake Hydroelectric Project ("Bradley Lake Project”).The project is called the Battle Creek Diversion Project ("BCD Project”).The activities of the BPMC regarding the BCD Project are authorized as Optional Project Work under the Power Sales Agreement.All Purchasers are supportive of the expansion of the capabilities of the Bradley Lake Project through the development of the BCD Project.Initially,not all Purchasers will be participating in the BCD Project. Purpose of Resolution No.2018-01:Resolution No.2018-01,and Attachment 1 to Resolution No.2018-01;Battle Creek Diversion Project Framework ("Attachment 1”),set forth the terms and conditions under which participation in the costs and benefits of the BCD Project as Optional Project Work under the Power Sales Agreement will be managed by the BPMC from the date of this Resolution No.2018-01 forward. Definitions:In addition to the definitions contained in Power Sales Agreement,the following definitions are used as part of this Resolution 2018-01 and Attachment 1: "Non-Participating Purchaser”means a Purchaser that is not participating in the BCD Project, "Participating Purchaser”means a Purchaser participating in the BCD Project. RESOLUTION NO.2018-01 WHEREAS,Chugach Electric Association,Inc.("Chugach”),Golden Valley Electric Association,Inc.("GVEA”),Homer Electric Association,Inc.("HEA”),the Municipality of Anchorage d/b/a Municipal Light and Power ("ML&P”),Matanuska Electric Association,Inc. ("MEA”),and the City of Seward ("Seward”),are the purchasers of the power generated by Bradley Lake Project under the Power Sales Agreement (hereinafter referred to jointly as the "Purchasers”and individually as a "Purchaser'); WHEREAS,the Purchasers along with the Alaska Energy Authority ("AEA”)constitute the BPMC; WHEREAS,the BCD Project is designed to supplement the water available for the Bradley Lake Project and the BCD Project will be using the facilities of the Bradley Lake Project,the BPMC will oversee and manage all aspects of the use of facilities of the Bradley Lake Project under theBPMC's authority provided by the Power Sales Agreement; WHEREAS,not all Purchasers have chosen to participate in the development and resulting benefits of the BCD Project at this time; Page 1 of 3 -Resolution 2018-01;Battle Creek Diversion Project Share Allocation Process [4-20-18] WHEREAS,the Participating Purchasers will hold harmless the Non-Participating Purchasers from incurring any costs associated with the development of the BCD Project; WHEREAS,the Non-Participating Purchasers shall have the ability to participate in the BCD Project at a later date; WHEREAS,a Non-Participating Purchasers shall have the opportunity to participate in the BCD Project later so long as the Non-Participating Purchasers reimburse the Participating Purchasers for an equitable portion of the reasonable costs incurred to develop the BCD Project prior to the time their respective participation begins; WHEREAS,the development and financing of the BCD Project will be required to have no effect on the Bradley Lake Project Power Revenue Bond Resolution ("Bond”)and related bond covenants associated with the Bradley Lake Project; WHEREAS,this Resolution No.2018-01,along with the Power Sales Agreement and the BPMC Bylaws,provide the authorization for the BPMC to manage the allocation of costs and benefits of the BCD Project to Participating Purchasers as well as the determination of the equitable costs to be paid by a Non-Participating Purchaser to Participating Purchasers should the Non-Participating Purchaser choose to participate in the BCD Project at a later date from the date of this Resolution forward; NOW,THEREFORE,IT IS HEREBY RESOLVED BY THE BPMC,that from this date forward the costs and benefits as well as the capacity of the BCD Project shall be managed and allocated in accordance with this Resolution No.2018-01 and the Attachment 1 to this Resolution No.2018-01,as part of the BPMC process for determining Annual Project Costs for the Bradley Lake Project;and, BE IT FURTHER RESOLVED BY THE BPMC,that the costs and benefits of the BCD Project should not affect the rights,duties,and obligations of the Purchasers as set forth in the Power Sales Agreement and Bond;and, BE IT FURTHER RESOLVED BY THE BPMC,that the BCD Project is approved as Optional Project Work under the Power Sales Agreement and this Resolution No.2018-01 and Attachment 1;and, BE IT FURTHER RESOLVED BY THE BPMC,that the right to the capacity of the BCD Project shall be allocated to all Purchasers in accordance with their respective shares of Bradley Lake Project capacity (hereinafter referred to as their "BCD Share”)unless such BCD Share is otherwise sold or transferred;and, BE IT FURTHER RESOLVED BY THE BPMC,that the costs and benefits associated with the BCD Project shall be allocated by the BPMC to only Participating Purchasers;and, BE IT FURTHER RESOLVED BY THE BPMC,that a Participating Purchaser and/or a Non-Participating Purchaser shall have the unfettered right to sell or transfer its BCD Shares to a Participating Purchaser after providing notice to the BPMC of its arrangement and the BPMC shall honor such arrangement in the allocation process for BCD Shares;and, BE IT FURTHER RESOLVED BY THE BPMC,that,unless otherwise agreed,a Non- Participating Purchaser having its BCD Share reallocated shall retain its ability to participate in Page 2 of 3 -Resolution 2018-01;Battle Creek Diversion Project Share Allocation Process [4-20-18] the BCD Project without restriction subject to the notice requirements and payment obligations in this Resolution No.2018-01 and Attachment 1;and, BE IT FURTHER RESOLVED BY THE BPMC,that the Non-Participating Purchasers will not bear any costs or suffer any adverse effect due to the BCD Project while not participating in the BCD Project;and, BE IT FURTHER RESOLVED BY THE BPMC,the BCD Project will be charged four percent (4%)of the Bradley Lake annual O&M or an alternative amount determined by a study of the impacts of the BCD Project to the Bradley Lake Project.The results of the study will be approved in accordance with the voting requirements for Optional Project work;and, BE IT FURTHER RESOLVED BY THE BPMC,that a Non-Participating Purchaser has no restriction to on its ability to participate at a later date but must provide notice of their intent to becomea Participating Purchaser a minimum of one year in advance of the start of the Project Water Year (starting June 1"),in which the Non-Participating Purchaser wishes to become a Participating Purchaser and satisfy any payment obligation;and, BE IT FURTHER RESOLVED BY THE BPMC,that the Non-Participating Purchasers choosing to participate in the BCD Project at a later date shall contribute (or cause the Participating Purchaser(s)accepting the Non-Participating Purchasers BCD Share(s)to contribute),if and to the extent such amount has not previously been contributed,an equitable portion of the reasonable costs incurred to develop the BCD Project which amount shall be determined by the BPMC at the time the Non-Participating Purchaser chooses to participate in the BCD Project with such reasonable development costs to include only the Non-Participating Purchaser's pro-rata share of AEA cash calls and Interest During Construction (IDC)paid up front by the Participating Purchasers and adjusted for the time value of money using a discount rate equal to the long-term financing cost for the BCD Project net the credit from the Clean Renewable Energy Bonds (CREBS);and, BE IT FURTHER RESOLVED BY THE BPMC,that any changes to the terms and conditions of this Resolution No.2018-01 and Attachment 1 that directly affect the rights and obligations of the Participating Parties to receive their respective benefits from the BCD Project shall require the unanimous consent of the Participating Parties. BE IT FURTHER RESOLVED BY THE BPMC,that the above Recitals be incorporated and made part of to this Resolution No.2018-01. Dated at Anchorage Alaska,this 20th day of April 2018, Chair Attest: Secretary Page 3 of 3 -Resolution 2018-01;Battle Creek Diversion Project Share Allocation Process [4-20-18] ATTACHMENT 1 TO RESOLUTION NO.2018-01 OF BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE Battle Creek Diversion Project Framework The costs and benefits of the Battle Creek Diversion Project ("BCD Project”)shall be managed in accordance with Resolution No.2018-01 and this Attachment 1 to Resolution No.2018-01,Battle Creek Diversion Project Framework ("Attachment 1”),as follows: A.General Applicability of Bradley Lake Project Provisions: 1.The provisions of the Power Sales Agreement and any of the documents,agreements, and understanding generally referred to as the Bradley Lake Agreements,where applicable,will be used to manage the energy generated and delivered from the BCD Project. Subject to the rights held by the Alaska Energy Authority,the BPMC will be the final arbiter on any issue involving the BCD Project and the Bradley Lake Project and/or the Purchasers,and any such issues shall be resolved in accordance with the voting requirements set forth in the Resolution No.2018-01 and the Dispute Resolution provisions of the BPMC Bylaws. For purposes of governance of any conflicts,the terms and conditions of Resolution No. 2018-01,will control over this Attachment 1,which will control over the BPMC Bylaws. B.Allocation of BCD Project Capacity: 1.The original shares of Bradley Lake Project capacity,i.e.,Chugach (30.4%),GVEA (16.9%),HEA (12.0%),ML&P (25.9%),MEA (13.8%),and Seward (1.0%)will not be changed in any manner by Resolution No.2018-01 and this Attachment 1. Each Purchaser shall have the right to participate in the BCD Project at the same percentage that it holds capacity in the Bradley Lake Project subject to Resolution No. 2018-01 and this Attachment 1. Initially,the right to the capacity of the BCD Project was allocated to all Purchasers in accordance with their respective shares of Bradley Lake Project capacity (hereinafter referred to as their "BCD Share'). Subject to the provisions of Resolution No.2018-01 and this Attachment 1,a Participating Purchaser or Non-Participating Purchaser shall have the unfettered right to arrange for Page 1 of 4 --Attachment 1 to Resolution No.2018-01 the sale or transfer of its respective BCD Share to another Participating Purchaser and the BPMC shall honor such arrangement in the allocation process for BCD Shares. 5.Some initially allocated BCD Shares were sold or transferred. 6.The Participating Purchaser that receives BCD Shares through a sale or transfer shall be responsible for all BPMC financial requirements and any notice obligations associated with the BCD Shares received through sale or transfer. 7.The BCD Share for any Non-Participating Purchaser (i.e.,BCD Shares that have not been sold and/or transferred)shall be placed into a share pool ("BCD Pool”)and reallocated by the BPMC in accordance with the methodology set forth in Section B.8.of this Attachment 1. 8.The methodology for allocating BCD Shares of any Non-Participating Purchaser that has not been otherwise sold or transferred is,as follows:the respective percentage of original shares of Bradley Lake Project capacity held by each Participating Purchaser shall be divided by the total percentage of Participating Purchasers ("Allocation Percentage”).The Allocation Percentage shall be multiplied by the percentage of original shares of Bradley Lake Project capacity held the total of all Non-Participating Purchasers that have not otherwise sold or transferred their BCD Shares to calculate the percentage of the reallocated amount of the Non-Participating BCD Shares ("Reallocated BCD Share”).The Reallocated BCD Share for each Participating Purchaser shall be added to the BCD Share for that Participating Purchaser to achieve the total amount of percentage participating in the BCD Project.Exhibit 1 provides an example of the specific calculation under this reallocation methodology. 9.The Participating Purchasers may,however,allocate their BCD Share and/or the redistributed BCD Shares from the BCD Pool by agreement and the BPMC shall honor such arrangement in the allocation process for BCD Shares. 10.At all times,one hundred percent (100%)of the BCD Shares must be allocated by the BPMC. 11.On or before February 1*of each year,a Purchaser must notify the BPMC if it desires to change its level of participation in the BCD Project.A Purchaser that fails to provide any notice to the BPMC regarding its level of participation shall be deemed by the BPMC to have notified the BPMC that it will maintain its current level of participation (or non- participation)in the BCD Project. 12.Any Purchaser desiring to maintain its respective share (or a percentage of their respective shares)of BCD Project capacity,but not immediately participating in the BCD Project (i.e.,Non-Participating Purchasers),shall have the right to call back its respective BCD Share by providing written notice to the BPMC ("Call Back Notice'). 13.A Call Back Notice must be provided to the BPMC by a Non-Participating Purchaser of its intent to become a Participating Purchaser at least one year in advance of the start of the Project Water Year (June 1*)to be effective for participation in the BCD Project beginning Page 2 of 4 -Attachment 1 to Resolution No.2018-01 14. 15. 16. at the start of the next Project Water Year.A Call Back Notice provided with less than one year in advance of the start of the Project Water Year,June 1*shall be effective for participation in the BCD Project to begin one year from the start of the next Project Water Year.A Call Back Notice can be made without restriction. The Non-Participating Purchaser providing a Call Back Notice and complying with all other obligations and responsibilities set forth in Resolution 2018-01 and this Attachment 1 shall be able to participate at the level equal to the capacity percentage it holds in the Bradley Lake Project (i-e.,its initial BCD Share).The BPMC shall make the necessary adjustments to the BCD Shares held by the other Participating Purchasers to accommodate the return of the Non-Participating Purchaser providing a valid Call Back Notice.Nothing in this paragraph prohibits a Non-Participating Purchaser from also acquiring additional capacity through a purchase or transfer of another Purchaser's BCD Share. Any Non-Participating Purchaser (or Participating Purchaser receiving BCD Shares from a Non-Participating Purchaser through sale or transfer)providing a Call Back Notice must reimburse the Participating Purchasers then participating in the BCD Project for the equitable portion of the reasonable costs incurred to develop the BCD Project as determined by the BPMC at the time the Non-Participating Purchaser chooses to participate in the BCD Project with such reasonable development costs to include only the Non-Participating Purchaser's pro-rata share of AEA cash calls and Interest During Construction (IDC)paid up front by the Participating Purchasers and adjusted for the time value of money using a discount rate equal to the long-term financing cost for the BCD Project net the credit from the Clean Renewable Energy Bonds (CREBS).This reimbursement of costs incurred to develop the BCD Project must be paid to the Participating Purchasers by the Non-Participating Purchaser providing a Call Back Notice on or before May 1*prior to the Project Water Year in which that Non-Participating Purchaser shall be eligible to participate in the BCD Project. Any action by a Purchaser that fails to conform to the procedures and requirements set forth in Resolution 2018-01 and this Attachment 1 shall be deemed void and without effect. C.BCD Project Cost Responsibility: 1.The responsibility for payment of costs shall be allocated by the BPMC to the Participating Purchasers in accordance with their respective BCD Shares,adjusted by any amount of the BCD Share from another Purchaser,if any,and/or the amount of the BCD Pool allocated from any Non-Participating Purchaser(s)("Adjusted BCD Share'). Participating Purchasers will hold harmless the Non-Participating Purchasers from all the costs (including cost of financing)associated with the BCD Project,as follows: a.The Participating Purchasers,in accordance with their Adjusted BCD Shares,will pay all the costs (including cost of financing)associated with the BCD Project; Page 3 of 4 -Attachment 1 to Resolution No.2018-01 .The BPNC shall determine and allocate the BCD Project costs to the Participating Purchasers during the determination of the Annual Project Costs for the Bradley Lake Project; .The costs associated with the BCD Project shall include an annual O&M charge as determined pursuant to Paragraph C.3 of this Attachment 1; .The costs associated with the BCD Project will be invoiced to Participating Purchasers as a separate surcharge amount shown on a schedule similar in form to the Schedule C accompanying the Bradley Lake Project determinations of "Monthly Utility Contributions;” .Any amounts received from Participating Purchasers for the costs associated with the BCD Project in excess of the actual costs associated with the BCD Project in each fiscal year will be distributed to the Participating Purchasers in accordance with their respective Adjusted BCD Shares for that fiscal year;and, Any additional amounts required for more than the budgeted costs associated with the BCD Project in each fiscal year shall be the responsibility of the Participating Purchasers in accordance with their respective Adjusted BCD Shares for that fiscal year. 3.The BCD Project will be charged four percent (4%)of the Bradley Lake annual O&M costs, or an amount to be determined by a study of the impacts of the BCD Project to the Bradley Lake Project,as an Annual Project Cost.The results of the study undertaken pursuant to this Paragraph C.3.of Attachment 1 will be approved in accordance with the voting requirements for Optional Project Work. D.BCD Project Water Tracking &Allocation: 1.The Operator for the Bradley Lake Project shall maintain for BPMC review and approval the methodology and procedures for the tracking and allocation of water;such approval by the BPMC shail be in accordance with the voting requirements set forth in Resolution No.2018-01. A Participating Purchaser's water rights in each fiscal year from the BCD Project will be allocated based upon its Adjusted BCD Share. DATED:April 20,2018 Page 4 of 4 -Attachment 1 to Resolution No.2018-01 Exhibit A To ATTACHMENT 1 TO RESOLUTION NO.2018-01 OF BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE Exhibit A Page 1 of 2 Example of Reallocation Process: {Note:This example,using the data associated with Chugach Electric Association,Inc.,illustrates the reallocation process with the data from the BPMC's 2018 BCD Share allocation process. Please see "Battle Creek Allocation Worksheet”prepared by Alaska Energy Authority at Page 2 of 2 of this Exhibit.] Section B.6.of Attachment 1 -Overview: The BCD Share for any Non-Participating Purchaser shall be placed into a share pool ('BCD Pool”)and reallocated by the BPMC in accordance with the methodology set forth in Section B.8.of Attachment 1.The methodology for allocating BCD Shares of any Non- Participating Purchaser that has not been otherwise sold or transferred is,as follows: Step 1 -The respective percentage of original shares of Bradley Lake Project capacity held by each Participating Purchaser shall be divided by the total percentage of Participating Purchasers ('Allocation Percentage'). Allocation Percentage =30.40 /57.20 =.53147 Step 2 -The Allocation Percentage shall be multiplied by the percentage of original shares of Bradley Lake Project capacity held by the total of all Non-Participating Purchasers that have not otherwise sold or transferred their BCD Shares to calculate the percentage of the reallocated amount of the Non-Participating BCD Shares ("Reallocated BCD Share”).In this example,only GVEA (16.9 percent)is not participating and has not otherwise sold or transferred its BCD shares. Reallocated BCD Share =(.53147)X GVEA's BCD Share (16.9)=8.98 Step 3 -The Reallocated BCD Share for each Participating Purchaser shall be added to the BCD Share for that Participating Purchaser to achieve the total amount of percentage participating in the BCD Project ("Final BCD Share Allocation'). Final BCD Share Allocation (%)=8.98 +30.4 =39.38% ALASKA ENERGY AUTHORITY Battle Creek Allocation December 13,2017 Battle Creek Share re-Battle Creek distribution to Allocation of Bradley Percent HEAfrom GVEA Share Power Purchaser Shared ML&P12/13/17 Chugach Electric 30.40%30.40%8.98% Municipality of Anchorage 25.90%0.00%0.00% Homer Electric 12.00%37.90%3.55% Matanuska Electric 13.80%13.80%4.08% Golden Valley Electric 16.90%0.00%0.00% City of Seward 1.00%1.00%0.30% 100.00%83.10%16.90% Battle Creek participation prior to Dec 13th: Non-participating percent total 42.80% Participating percent total 57.20% 100.00% Battle Creek participation Dec 13th: Non-participating percent total 42.80% Participating percent total 57.20% 100.00% Exhibit A Page 2 of 2 Gross 39.38% 41.45% 17.88% 1.30% 100.00% Bradley Lake Budget to Actual Expense Report 07/01/2017 to 02/28/2018 Page 1 of 8 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Schedule A-1 Expenses for the period 07/01/17 through 02/28/18 FY17 FY17 FY18 FY18CAPITALPURCHASESNOTFUNDEDBYR&C FUND Bupcet |actuats |BUDGET |ACTU ALS | Replace/Automate Fish Water Valve Actuators 250,000 89 225,000 215,890 Equipment storage shed (unheated bus barn)--100,000 11,646 1 ton Flatbed with Plow --65,000 - Battle Creek Bridge Repair Refurbishment (2)--182,000 - Mobil Crane 40 to 50 tons (used)--100,000 63,277 Replace Michigan Loader --350,000 - Upgrade Crews Quarters and Residents Kitchen --165,000 1,850 Replace 1988 Suburban Ambulance -65,000 - 1/2 ton Pick up truck --35,000 33,028 Replace High Bay Lighting in Power Plant --20,000 14,220 Total Non R&C Capital Purchases 250,000 89 1,307,000 339,911 Page 2 of 8 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS &MAINTENANCE SCHEDULE B BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2017 THROUGH 02/28/2018 FY 18 FY 17 BUDGET % FY18 Approved 07/01/2017 -(Over)Under FY17 Approved Budget 02/28/2018 HEA Actual CEA Actual AEA Actual Total Actual Budget to Date Budget FY17 Actual Summary by expense type Labor &Benefits 1,889,814 1,259,878 942,423 76,132 :1,018,554 241,324 2,005,079 1,533,371 Travel 76,950 $1,301 5,027 1,701 -6,728 44,573 132,950 27,009 Training 49,300 32,867 8,571 ::8,571 24,296 49,300 35,736 Contractual 841,062 560,707 179,111 :154,584 333,695 227,012 1,217,418 850,184 Supplies &Materials 183,345 122,230 90,980 2,005 -92,985 29,245 229,358 113,150 Other Costs 387,818 258,546 23,797 26,071 48,272 98,140 160,406 381,744 297,447 Furniture and Machinery 7,000 4,067 4,216 795 -§,011 (344)11,500 10,137 Projects *::800 -800 (800)-: Administrative Costs 1,158,098 772,064 32,887 :716,102 748,988 23,076 1,126,761 1,144,749 4,593,387 3,062,260 1,287,013 107,503 918,958 2,313,474 748,786 §,154,110 4,011,783 FERC 535 -Operation Supervision &Engineering Operations Sup/Eng Bradley Lake Operating Labor &Benefits 265,587 177,088 174,483 ::174,483 2,575 299,649 266,820 Travel 10,450 6,967 347 :-347 6,620 10,450 9,452 Training 9,300 6,200 2,121 -:2,121 4,079 9,300 11,171 Contractual 1,000 667 121 --121 546 1,400 300 Supplies &Materials 4,000 2,667 383 ::383 2,284 4,100 5,781 Bradley Lake Operating Total 290,337 193,559 177,455 ::177,455 16,104 324,899 293,523 FERC 535 -Operation Supervision &Engineering Total 290,337 193,559 177,455 .-177,455 16,104 324,899 293,523 FERC 537 -Hydraulic Expenses Hydraulic Expenses Bradley Lake Operating Labor &Benefits 94,453 62,969 46,004 ::46,004 16,965 92,745 65,670 Contractual 2,000 1,333 -:::1,333 4,000 $,647 Supplies &Materials 2,000 1,333 540 :.540 793 2,900 886 Bradley Lake Operating Total 98,453 65,635 46,544 ::46,544 19,091 99,645 72,202 FERC 537 -Hydraulic Expenses Tota!98,453 65,635 46,544 :-46,544 19,091 99,645 72,202 FERC 538 -Electric Expenses Electric Expenses Bradley Lake Operating Labor &Benefits 232,294 154,863 137,064 :-137,064 17,799 242,940 193,058 Travel 7,000 4,667 4,680 -:4,680 {13)7,000 8,638 Training 25,000 16,667 231 ::231 16,436 25,000 23,737 Contractual 2,000 1,333 1,400 :-1,400 (67)2,000 1,400 Supplies &Materials 9,732 6,488 24 --24 6,464 8,500 4,672 Bradiey Lake Operating Total 276,026 184,018 143,399 :-143,399 40,619 285,440 231,505 FERC 538 -Electric Expenses Total 276,026 184,018 143,399 :°143,399 40,619 285,440 231,505 FERC 539-Misc.Hydraulic Power i Misc Hydro Power Exp Bradley Lake Operating Labor &Benefits 173,530 119,687 106,426 -:106,426 13,261 178,991 137,740 Training 15,000 10,000 6,219 ::6,219 3,781 15,000 829 Contractual 287,525 191,683 118,260 ::118,260 73,423 297,048 214,899 Supplies &Materials 17,900 11,933 9,227 --9,227 2,706 17,900 19,695 Bradley Lake Operating Total 499,955 333,303 240,133 -:240,133 93,170 508,939 373,163 BRADLEY CIRCUITS/RADIO TO BERNICE LK Other Costs 35,695 23,797 23,797 :-23,797 {0}35,695 35,696 BRADLEY CIRCUITS/RADIO TO BERNICE LK Total 35,695 23,797 23,797 ::23,797 {0}35,695 35,696 BRADLEY CIRCUITS BERNICE LK TO ANCH Other Costs 29,773 19,849 -19,789 :19,789 60 29,773 29,540 BRADLEY CIRCUITS BERNICE LK TO ANCH Total 29,773 19,849 19,789 -19,789 60 29,773 29,540 FERC 539 -Misc.Hy Power Pp Total 565,423 376,949 263,930 19,789 .283,719 93,230 574,407 438,398 FERC 540 -Rents FERC Land Use Fee Bradley Lake Operating Other Costs 318,000 212,000 ::48,272 48,272 163,728 312,176 230,614 Bradley Lake Operating Total 318,000 212,000 -:48,272 48,272 163,728 312,176 230,614 FERC 540 -Rents Total 318,000 212,000 .:48,272 48,272 163,728 312,176 230,614 FERC 541 -Maintenance Supervision &Engineering Maint Supervision/Eng Bradiey Lake Operating Labor &Benefits 272,586 181,724 175,335 ::175,335 6,389 224,283 229,602 Bradley Lake Operating Total 272,586 181,724 175,335 -:175,335 6,389 224,283 229,602 FERC 541 -Maintenance Supervision &Engineering Total 272,586 181,724 175,335 -:175,335 6,389 224,283 229,602 FERC 542 -Maintenance of Structures Maintenance of Structures Bradley Lake Operating Labor &Benefits 94,453 62,969 46,814 :-46,814 16,155 92,746 65,629 Contractual 10,000 6,667 -:--6,667 10,000 : Supplies &Materials $3,713 35,809 27,119 --27,119 8,690 53,713 42,233 F and hinery 7,000 4,667 4,216 .-4,216 451 11,500 8,318 Bradley Lake Operating Total 165,166 110,112 78,150 -:78,150 31,962 167,959 116,180 FERC 542 -Maintenance of Structures Total 165,166 110,112 78,150 .78,150 31,962 167,959 116,180 Page 3 of 8 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS &MAINTENANCE SCHEDULE B BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2017 THROUGH 02/28/2018 FY 18 FY 17 BUDGET % FY18 Approved 07/01/2017 -(Over)Under FY17 Approved Budget 02/28/2018 HEA Actual CEA Actual AEA Actual Total Actual Budget to Date Budget FY17 Actual FERC 543 -Maintenance of Reservoirs,Dams &Waterways Maint Res,Dams,WWays Bradley Lake Operating Labor &Benefits 50,610 33,740 7,382 :.7,382 26,358 $0,409 50,035 Contractual 6,500 4,333 --::4,333 5,200 63,704 Bradley Lake Operating Total 57,110 38,073 7,382 ::7,382 30,691 55,609 113,739 BRADLEY NUKA REPAIR Contractual 15,000 10,000 ::--10,000 15,000 980 BRADLEY NUKA REPAIR Total 15,000 10,000 ::-:10,000 15,000 980 BRADLEY POWER TUNNEL MAINT {Dam} Contractual 15,000 10,000 -.:-10,000 15,000 9,431 BRADLEY POWER TUNNEL MAINT (Dam)Total 15,000 10,000 ::--10,000 15,000 9,431 FERC 543 -Maintenance of Reservoirs,Dams &Waterways Tota 87,110 58,073 7,382 ->7,382 50,691 85,609 124,151 FERC 544 -Maintenance of Electric Plant Maintenance of Elec Plant Bradley Lake Operating Labor &Benefits 379,102 252,735 183,240 :-183,240 69,495 370,983 266,161Travel4,500 3,000 :-.-3,000 4,500 740 Contractual 70,000 46,667 46,347 ::46,347 320 79,000 36,844Supplies&Materials 20,000 13,333 8,918 :-8,918 4,415 27,248 13,081 Bradley Lake Operating Totat 473,602 315,735 238,505 :*238,505 77,230 481,728 316,825 FERC 544 -Maintenance of Electric Plant Total 473,602 315,735 238,505 -:238,505 77,230 481,728 316,825 FERC 545 -of Misc.Hydraulic Plant Maint of Mise Hyde Plant Bradley Lake Operating Labor &Benefits 94,453 62,969 46,849 ::46,849 16,120 92,746 66,129Contractual3,900 2,600 -::-2,600 3,900 5,274 Supplies &Materials 35,000 23,333 43,424 :*43,424 {20,091)43,000 20,631 Bradley Lake Operating Total 133,353 88,902 90,273 :-90,273 {1,371}139,646 92,033 BRADLEY FISH WATER DSGN/MIDDLE FORK SHACK IMPR Contractual .-----.20,000 - Supplies &Materials .+1,345 .-1,345 (1,345):: BRADLEY FISH WATER OSGN/MIDDLE FORK SHACK IMPR Tot :-1,345 --1,345 (1,345)20,000 : FERC 545-of Misc.Hy Plant Total 133,353 88,902 91,618 -91,618 (2,716)159,646 92,033 FERC 556 -System Control &Load Dispatching System Ctl &Load Disp Bradley Lake Operating Labor &Benefits 20,618 13,745 18,826 ::18,826 (5,081)49,502 27,294 Contractual 53,000 35,333 12,901 :bd 12,901 22,432 60,500 66,135 Supplies &Materials 6,000 4,000 --:-4,000 6,000 2,229 Bradley Lake Operating Total 79,618 53,078 31,727 ::31,727 21,351 116,002 95,657 Snow Measurement Bradley Lake Operating Contractual 10,000 6,667 -:10,000 10,000 (3,333)10,000 10,000 Bradley Lake Operating Total 10,000 6,667 :.10,000 10,000 (3,333)10,000 10,000 Seismic Service Bradiey Lake Operating Contractual 62,000 41,333 ::38,015 38,015 3,318 60,370 61,358 Bradley Lake Operating Total 62,000 41,333 -:38,015 38,015 3,318 60,370 61,358 Streamguaging Serv Bradley Lake Operating Contractual 213,137 142,091 .:106,569 106,569 35,523 310,000 157,164 Bradley Lake Operating Total 213,137 142,091 -:106,569 106,569 35,523 310,000 157,164 Permits Bradley Lake Operating Other Costs 350 233 .--233 100 450 Bradley Lake Operating Total 350 233 ----233 100 450 FERC 556 -System Controt &Load Dispatching Total 365,105 243,402 31,727 :154,584 186,311 57,091 496,472 324,629 FERC S62 -Station Expenses Station Expenses Bradley Lake Operating Labor &Benefits 123,726 82,484 :76,132 -76,132 6,352 130,414 151,868 Travel 6,000 4,000 -2,703 -1,701 2,299 6,000 . Contractual 4,000 2,667 ----2,667 4,000 3,447 Supplies &Materials 16,000 10,667 -2,005 -2,005 8,662 16,000 3,848 Other Costs 4,000 2,667 -6,282 -6,282 (3,615)4,000 1,148 Equipment,Furniture and Machinery ---795 -795 (795):: Maintenance Projects ---800 :800 (800):: Bradley Lake Operating Total 153,726 102,485 87,715 :87,715 14,770 160,414 160,311 FERC 562 -Station Expenses Total 153,726 102,485 5 87,715 -87,715 14,770 160,414 160,311 Page 4 of 8 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS &MAINTENANCE SCHEDULE B BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2017 THROUGH 02/28/2018 FY 18 FY 17 BUDGET % FY18 Approved 07/01/2017 -(Over)Under FY17 Approved Budget 02/28/2018 HEA Actual CEA Actual AEA Actual Total Actual Budget to Date Budget FY17 Actual FERC 571 -Maintenance of Overhead Lines Maint of OH Lines Bradley Lake Operating Labor &Benefits 82,402 54,935 -:::54,935 179,671 7,014 Travel 49,000 32,667 :::-32,667 95,000 8,179 Contractual 86,000 57,333 -:::57,333 50,000 - Supplies &Materials 19,000 12,667 ::::12,667 50,000 95 Equipment,Furniture and Machinery ---"--::584 Bradiey Lake Operating Total 236,402 157,602 :::-157,602 374,671 15,872 BRADLEY JUNCTION SWITCH REMOVAL Travel :--::--5,000 : Contractual -------70,000 73,076 BRADLEY JUNCTION SWITCH REMOVAL Total -->::--75,000 73,076 BRADLEY MARKER BALL REPLACEMENT Labor &Benefits --.----.6,352 Travel ---:---5,000 : Contractual ::83 :-83 (83}}200,000 140,526 Equipment,Furniture and Machinery -:-.-:-:1,235 BRADLEY MARKER BALL REPLACEMENT Total -*83 --83 {83}205,000 148,113 FERC 571 -Maintenance of Overhead Lines Total 236,402 157,602 83 :-83 157,519 654,671 237,061 FERC 920 &930 -Administrative Expense AEA Bradley Fixed Admin Fees Bradley Lake Operating Administrative Costs 200,000 133,333 :133,333 133,333 (0)200,000 200,000 Bradley Lake Operating Total 200,000 133,333 :-133,333 133,333 (0)200,000 200,000 Operating Committee Exp-Audit Bradley Lake Operating Administrative Costs 16,800 11,200 -.16,800 16,800 (5,600)16,494 16,500 Bradley Lake Operating Total 16,800 11,200 -:16,800 16,800 (5,600)16,494 16,500 Operating Committee Exp-Legal Bradley Lake Operating Administrative Costs 25,000 16,667 ->81,108 81,108 (64,441)25,000 57,444 Bradley Lake Operating Total 25,000 16,667 ::81,108 81,108 (64,441)25,000 57,444 Operat Committee Exp-Arbitrage Bradley Lake Operating Administrative Costs 3,380 2,253 ----2,253 3,630 3,630 Bradley Lake Operating Total 3,380 2,253 >---2,253 3,630 3,630 Trust &Account Fees Bradley Lake Operating Administrative Costs 11,918 7,945 ::11,918 11,918 (3,973)12,000 11,918 Bradiey Lake Operating Total 11,918 7,945 -:11,918 11,918 {3,973}12,000 11,918 Misc Admin Bradley Lake Operating Administrative Costs 10,000 6,667 -:10,350 10,350 {3,683}*10,000 Bradley Lake Operating Total 10,000 6,667 --10,350 10,350 (3,683)E 10,000 FERC 920 &930 -Administrative Expense Total 267,098 178,065 --253,510 253,510 (75,445)257,124 299,492 FERC 924 &925 -Insurance Premiums Insurance Premiums Bradley Lake Operating Administrative Costs $81,000 387,333 32,887 :387,850 420,736 {33,403)564,637 554,670 Bradley Lake Operating Total 581,000 387,333 32,887 :387,850 420,736 {33,403)564,637 554,670 FERC 924 &925 -Insurance Premiums Total 581,000 387,333 32,887 -387,850 420,736 (33,403)564,637 554,670 FERC 928 -U y Ci FERC Admin Fees Bradley Lake Operating Administrative Costs 185,000 123,333 ::::123,333 180,000 122,210 Bradley Lake Operating Total 185,000 123,333 ----123,333 180,000 122,210 FERC Related Prof Services BRADLEY FERC PART 12 INSPECTION Administrative Costs --:::::25,000 24,113 BRADLEY FERC PART 12 INSPECTION Totat ::---::25,000 24,113 BRADLEY CONTRACTUAL ENGINEER-FERC LICENSE ISSUES Administrative Costs 125,000 83,333 ::74,743 74,743 8,590 100,000 144,264 BRADLEY CONTRACTUAL ENGINEER-FERC LICENSE ISSUES To}125,000 83,333 -:74,743 74,743 8,590 100,000 144,264 FERC 928 -fl y Ci Total 310,000 206,666 bd :74,743 74,743 131,923 305,000 290,586 Total Bradley Lake Budget 4,593,387 3,062,260 1,287,013 107,503 918,958 2,313,474 748,786 5,154,110 4,011,783 Page 5S of 8 BRADLEY LAKE R&C FUND DISBURSEMENTS AND REPAYMENTS SCHEDULE D Expenses for the period 7/1/17 through 2/28/18 Actual Actual Actual Actual Budget @ 6/30/17 TO REPAY @ 2/28/18 TO REPAY FY18 Description Expense 6/30/2017 Expense 6/30/2018 R&C FUND PROJECTS Governor 0.00 4,052,070.14 0.00 4,052,070.14 0.00 Replace RFLS 0.00 251,092.69 0.00 251,092.69 0.00 Replace Runners 0.00 1,946,732.79 0.00 1,946,732.79 0.00) Replace cable from dam to power house 0.00 2,321 ,922.94 0.00 2,321,922.94 0.00) Replace power system stabilizer 0.00 619,205.10 0.00 619,205.10 0.00 Replace two RTUs 0.00 86,905.27 0.00 86,905.27 0.00 Culvert Repairs 0.00 675,966.79 0.00 675,966.79 0.00 Tower Repair for Jack Frost Heaves 0.00 887,596.62 0.00 887,596.62 0.00 Replace Plant and SCADA Controls 0.00 1,344,683.05 0.00 1,344,683.05 0.00 Vibration Monitoring System 0.00 490.00 0.00 490.00 0.00 Fire Alarm System Replacement 0.00 0.00 0.00 0.00 350,000.00) Battle Creek Diversion 25,982.26 1,170,000.00 0.00 1,170,000.00 0.00 Bradley Replace Electro-Mechanical Relays 0.00 1,277,197.06 0.00 1,277,197.06 0.00 Fishwater Screen Debris Removal 0.00 312,236.43 0.00 312,236.43 0.00 Turbine Nozzel Repair 12,203.01 1,428,861.07 0.00 1,428,861.07 0.00) SVC replacement Daves Creek |Soldotna 5,606,007.81 7,176,585.15 1,339,497.84 8,516,082.99 1,360,400.00 Spillway Raise 0.00 0.00)0.00 0.00)350,000.00 5,644,193.08 |23,551,545.10 1,339,497.84 |24,891,042.94 2,060,400,00 Current Year R&C Repayment (3,262,788.00)(2,793,306.00) Adjust to balance to $5million 0.00 0.00 Interest in Fund Applied to Repayment (361,780.54)(226,753.49) Net Transfer from Revenue Fund (3,624,568.54)(3,020,059.49) Cumulative Prior Years R&C Repayments (15,409,249.92)(17,886,155.09) Due Back to Utilities 1,147,663.37 441,436.06 Adjust Due to R&C Actual 0.00 0.00 (14,261,586.55)(17,444,719.03) NET DUE TO R&C FUND §665,390.01 4,426 264.42 R&C FUND CASH FLOW PROJECTION Beginning Investment Balance §,623,509.49 3,219,624.39 Disbursements-current year -Accrual (2,906,842.05)(527,735.08) Disbursements-prior year accrued (2,065,650.48)(2,737,351.03) Utilities'R&C Refund (1,055,961.11)(1,147,663.37) Net other cash inflow(outfiow)0.00 0.00 Current year interest earnings 361,780.54 226,753.49 Participants Contributions to R&C Fund 3,262,788.00 2,793,306.00 Ending Investment Balance 3,219,624.39 1,826,934.40 Accrued Due to Utilities (1,147,663,37)(441,436.06) Accrued R&C vendor Payable at Year End (2,737,351.03)(811,762.76) PROJECTED NET DUE +ENDING INVESTMENT BALANCE 5,000,000.00 5,000,000.00 REPAYMENT AMOUNT $1,834,499.92 x 25%yr 1|25%yr 2 |50%yr 3 $789,697.09 x 25%yr 1]75%yr 2 $3,330,802.80 x 25%yr 1 |32%yr 2 |25%yr 3 |18%yr 4 2nd yr 1,065,856.90 [3rd yr 832,700.70 832,700.70 $5,644,193.08 x 25%all 4 years 1st yr 1,411,048.27 }2nd yr 1,411,048.27 1,445,505.93) $1,339,967.29 x 25%all 4 years ist yr 334,874.46 515,100.00 eee 476,905.17 |2,578,623.43 2,793,306.63 Page 6 of 8 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Battle Creek Capital Purchases Schedule E Expenses for the period 07/01/17 through 02/28/18 FY18 Battle Creek Capital Purchases FY17 Amended FY18 Actuals Budget Actuals Battle Creek Diversion 799,063 400,000 358,647 Total Construction 799,063 400,000 358,647 Used 2007 Chevrolet Silverado -8,800 - Used 2006 Chevrolet Silverado -7,700 - Total capital revenue fund purchases -16,500 - 7 of8 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Battle Creek Administrative Costs Budget Schedule F Expenses for the period 07/01/17 through 02/28/18 BUDGET % FY18 Amended 01/01/2018 -(Over)Under Budget 02/28/2018 Total Actual |Budget to Date Summary by cost type Administrative Costs 43,800 14,600 23,364 (8,764) 43,800 14,600 23,364 (8,764) FERC 920 &930 -Administrative Expense AEA Battle Creek Fixed Admin Fee Administrative Costs 22,000 7,333 7,333 0 Total AEA Battle Creek Fixed Admin Fee 22,000 7,333 7,333 0 Operating Committee Exp-Other Administrative Costs 500 167 -167 Total Operating Committee Exp-Other 500 167 -167 Operating Committee Exp-Legal Administrative Costs 15,000 5,000 8,846 (3,846) Total Operating Committee Exp-Legal 15,000 5,000 8,846 (3,846) Operat Committee Exp-Arbitrage Administrative Costs 2,000 667 -667 Total Operat Committee Exp-Arbitrage 2,000 667 -667 Trust &Account Fees Administrative Costs 4,300 1,433 7,185 (5,752) Total Trust &Account Fees 4,300 1,433 7,185 (5,752) FERC 920 &930 -Administrative Expense Total 43,800 14,600 23,364 8,764) Total 43,800 14,600 23,364 8,764) 8 of8 VO Bradley O&D Report to the BPMC April 20,2018 1.System Events a.Discussion of utility AGC settings that trigger Constant Frequency. i.Utilities are using different settings -need to use the same settings. b.Discussion of generator governor settings to improve system response during events. i.Utilities are engaging manufactures to evaluate setting changes. 2.Bradley Project Dynamic Scheduling a.Discussion on how to set up Bradley Lake Scheduling to allow participants to continue to dynamically schedule Bradley resources when CEA is not regulating with Bradley Lake.wBradley Project On-Site Work Rules a.Reviewed and discussed proposed changes to work rules. 4.Bradley Project Water Reports a.Reviewed Water Reports and discussed daily Bradley Project reconciliation paper work. 5.Battle Creek a.AEA and Utilities met with Orion Marine February 8 for a meet and greet and to discuss construction schedule. b.AEA has set up a ShareFile site for Orion to upload BCD project submittals.Each utility should have at least one individual with access credentials. c.Project O&M cost allocation Study i.Each O&D member to discuss this issue with their respective BPMC member. ii.O&D is working with the Operator to provide guidance for tracking labor and any use of Bradley Project assets during BCD construction. iii.HEA has set up a separate account to charge labor to the BCD Project. Unit Statistics: Bradley Lake Operator Report BPMC April 20,2018 as of 04/18/2018* Generation Unit 1 (MWhrs)Unit 2 (MWhrs)Total (MWhrs) March 2018 19,540 16,641 36,181 Hydraulics Avg.Lake Level (ft.)Usage (ac ft.)Fish water (ac ft.) March 2018 1116.3 36,001 97.7 AVG Generation Unit 1 (MWhrs)Unit 2 (MWhrs)Total (MWhrs) April 2018*12,289 10,398 22,688 Hydraulics Avg.Lake Level (ft.)Usage (ac ft.)Fish water (ac ft.) April 2018*1106.4 22,9795 91.22 AVG Lake Level -1106.4'as of April 2018 Capital Projects: 1)Battle Creek is underway -Multiple barges and equipment have arrived at Bradley.Work has begun on clearing the road to the dam and building the camp site.The well is producing water. 2)Fish Water Control Automation -Wee are working with EMERSON on automation of the fish water release controls. 3)Road to the Dam -the road to the dam is closed to the public during Battle Creek construction (next two years). 4)Public Dock -The floating dock is closed during construction of Battle Creek. 5)Loader Purchase -Loader should arrive Anchorage April 25".Orion indicates a willingness to carry the loader to Bradley on their barge departing out of Anchorage on the (avoiding road weight limits). 6)Cooperation with Orion -Orion has backhauled a bunch of trash for the landfill in Homer on their barges returning from Bradley Lake Operations,Maintenance,and Inspections:28"of April Bradley Lake Operator Report Page 1 1)Operations-Operations at the Plant were normal with nothing extraordinary to report). 2)Unit availability-Unit 1 100%,Unit 2 100%. 3)Spring Prep -Chains were removed on the grader,the dump truck and the plow truck and the dump truck sander was removed. 4)Runway lights -fixed all runway indicators. 5)LED lights in Powerhouse -Ordered second round of LED lights for powerhouse. 6)Completed inspections -Spillway drains,tunnel drains and fire Extinguisher inspection. 7)Monthly Safety Meeting -was held March 26 and April 16. 8)Employee Quarterly Meeting -Employee update and general meeting held April 2. 9)Inspection of the dam -An inspection of the dam was performed on April 14. Condition of the dam and lake April 14,2018 Bradley Lake Operator Report Page 2 Battle Creek equipment arrives (GMC) Bradley Lake Operator Report Page 3 Bradley Lake Project Management Committee -Alaska Online Public Notices Page 1 of 1 STATUS:Active Bradley Lake Project Management Committee ALASKA ENERGY AUTHORITY (AEA) Bradley Lake Project Management Committee Notice is hereby given that the Bradley Lake Project Management Committee will hold a regular meeting on Friday,April 20,2018 at 10:00 a.m.For additional information contact Teri Webster at 907-771-3074. This meeting will be conducted by electronic media pursuant to AS 44.62.310 at the following location: Alaska Energy Authority Board Conference Room,813 West Northern Lights Boulevard,Anchorage,Alaska; A teleconference line has been set up for those unable to attend in person.Dial 1-888-585-9008,Enter Code 467-050-126#. The public is invited to attend.The State of Alaska (AEA)complies with Title Il of the Americans with Disabilities Act of 1990.Disabled persons requiring special modifications to participate should contact AEA staff at 907- 771-3074 to make arrangements. Attachments,History,Details Attachments BPMC Agenda.pdf Revision History Created 4/13/2018 2:19:26 PM by tawebster https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=189593 Details Department: Category: Sub-Category: Location(s): Project/Regulation #: Publish Date: Archive Date: Events/Deadlines: Commerce,Community and Economic Development Public Notices Statewide 4/13/2018 4/21/2018 4/13/2018 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING Py)Friday,April 20,2018 10:00 A.M.io Alaska Energy Authority,Board Roomi)813 W.Northern Lights Boulevard,Anchorage,Alaska To participate VIA TELECONFERENCE -1-888-585-9008 -Conference room code 467-050-126 AGENDA 1.CALL TO ORDER 2.ROLL CALL FOR COMMITTEE MEMBERS 3.PUBLIC ROLL CALL 4.PUBLIC COMMENTS 5.AGENDA APPROVAL 6.PRIOR MINUTES -Feb.2,2018;March 5,2018 7.NEW BUSINESS A.Battle Creek Construction Update AEA B.Bradley Operator RFP update AEA C.Resolution 2018-01 -Battle Creek Project Share Allocation K.Gibson ID -Soldotna Sve Gwiter replacement Executive Session -Bradley Lands Update AEA REPORTS A Budget to Actual Report Budget Subcommittee B O&D Report C Operators Report HEA COMMITTEE ASSIGNMENTS MEMBERS COMMENTS NEXT MEETING DATE -Friday,May 18,2018 12.ADJOURNMENT om1iATTENDANCE -BPMC MEETING,April 20:"COMMITTEE MEMBERS ALTERNATE i -vA Coryy Borgeson,Chair :_eases OO /Lee Thibert,Vice Chair CEA |Burke-Wick /Brad Janorschke HEA uv Bob DayJ,Bryan Carey,Secretary/Treasurer AEA JanetReiser J Tony Izzo MEA |Tony Zellers J Mark Johnston MLP_-JofWarnerscrFoutzSEW a ee Public;Members _|COUNSEL : CEA "Brian Hickey (CEA)Kirk Gibson,McDowell Rackner &GibsonWA|pc Mark-derkasornr(teeA)/-Brian Bjorkquist,Dept.of Law7SherriHigher(CEA)_ /7 |Paul Risse (CEA)a AEA J Brenda Applegate ke 4sJosh Resnick (CEA)|AmyAdter HEA Rich Baldwin (HEA)_Jocelyn Gardneruu"Alan Owens (HEA)|Brandi White Emily Hutchinson (HEA)",Carmen Noble L'Larry Jorgensen (HEA)_"%Teri Webster MLP-|Anna Henderson (MLP)a.DavidTockard 7 /Molly Morrison (MLP)J Kirk Warren GVEA Ron Woolf (GVEA)Jessica-Houster od Pete Sarauer (GVEA)er TOM MEA |_|Jim Brooks (MEA);a Katie_-9¥*|David Pease (MEA) Matt Reisterer (MEA) Public |¥/7 Bernie Smith CrystatenkvistAPA) pit!Mel Hutchinson (APA)vasTW PatchI+|Eric Myers (American Transmission Co) : ae SteveCanon es Od Rnvins _oe _ee {0:i _BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE,wh we BPMC 4/20/18 First Second First y Second First Second Arts |yas -aRollCallAgendaMinutesRes2018-01 AW,Roll call from top to bottom ending with Chair Yes No Yes No Yes No Yes No Yes Matanuska Electric Association ",al Chugach Electric Association -_™tr 7 " City of Seward a \}q " Golden Valley Electric Association "A Municipal Light &Power //a2 Homer Electric Association "/WA Alaska Energy Authority -\t // Vw mee _tiie reas et sawnweaiehl cas Guts eee Aa Pater Rees SN le otto Ae ihe.atin RASS fewwte ca First Ypaprgo First Second First Second First Second First Second ww'¥A wo Ay'/A {\aD 9 rsRollcallfromtoptobottomendingwithChair™'\yee Sess Yes No Yes No Yes No Yes No Yes No Matanuska Electric Association Chugach Electric Association City of Seward Golden Valley Electric Association Municipal Light &Power Homer Electric Association Alaska Energy Authority Bee sateen ethene Alaut RAhaatingas £110/40 ondaWitch(ees CMe,Cary /Fhe 1 gamle.5200 t (abuc'19,209 shy contractor EMpeed on pone ?IFioks ou Jo get.SYC sh)\¢an stay OD)Cost,Sope,timeline wl deadline fac 4%of OM BL Dudget es}(8S ay Studystsworethanthot-.\wpack OFM e epleltite byr atle- ae-OGD revise COOK Sion.Vodule eshmatecl by une Miy Sune \S tp Pradley aoyCylOd\*FA BPre ZndGiMay(8 BMC Wig 7 ee Bradley Lake Project Management Committee Friday,April 20,2018 **PLEASE WRITE LEGIBLY** NAME ORGANIZATION Ladgayya-Linkin PRA TpCeguneoeLusiTEHeaSomMLaytBellsTeeNich [trey loeg er Sew (feat Scivi Goned tteA CAWmen b\dole Pet TW Dh ALCEineWANSATCLAGwosdreJ erMeWawadsWileiED