Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
BPMC Oct 25, 2018
BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Alaska Energy Authority,Anchorage,Alaska "N6October25,2018 1.CALL TO ORDER Chair Borgeson called the telephonic regular meeting of the Bradley Lake Hydroelectric ProjectManagementCommitteetoorderat11:02 a.m.A full 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 Zellers (Matanuska Electric Association [MEA]);Mark Johnston (Anchorage Municipal Light &Power [ML&P]);John Foutz (City of Seward);and Brad Janorschke (Homer Electric Association [HEA)). 3.PUBLIC ROLL CALL Jocelyn Garner,Kirk Warren,Teri Webster (AEA);Amy Fenerty (Aldrich CPA Advisors);Sherri Highers,Burke Wick (CEA);Stefan Saldanha (Department of Law),Ron Woolf (GVEA);Rick Baldwin,Bob Day,Emily Hutchinson,Larry Jorgenson,Alan Owens (HEA);Jocelyn Pease (McDowell Rackner Gibson,PC);David Pease (MEA);Bernie Smith (Public);Ladonna Lindley (Accu-Type Depositions). 4.PUBLIC COMMENTS None. 5.AGENDA APPROVAL MOTION:Mr.Johnston made a motion to approve the agenda.Motion seconded by Mr. Janorschke. Motion passed unanimously. 6.PRIOR MINUTES -September 21,2018 MOTION:Mr.Thibert made a motion to approve the Minutes of September 21,2018. Motion seconded by Mr.Carey. Motion passed unanimously. 7.NEW BUSINESS A.Bradley O&M Agreement Resolution 2018-03 to extend O&M agreement MOTION:Mr.Carey made a motion to approve Resolution 2018-03 authorizing the second amendment to the Seconded Amended and Restated O&M Agreement.Motion seconded by Mr.Johnston.Mr.Janorschke noted a clerical error on the last paragraph at the bottom of the first page,which should read,"Whereas the Authority and HEA entered the second amended and restated BPMC Minutes 10/25/18 Page 1 of 3 Operation and Maintenance Agreement for Bradley Lake.”The changes are to correct the word. amendment to amended and insert the word agreement after maintenance. Mr.Carey noted another non-substantive error in the resolution,and requested changing the current effective O&M Agreement termination date in the first paragraph from January 1,2019 to December 31,2018,at midnight. The Maker of the Motion and the Second approved to include the technical changes toResolution2018-03. Aroll call vote was taken,and the motion passed unanimously. Second Amendment to the O&M agreement MOTION:Mr.Janorschke made a motion to approve the Second Amendment to the Second Amended and Restated O&M agreement Bradley Lake Hydroelectric Project. Motion seconded by Mr.Carey. Mr.Janorschke noted clerical errors under the sixth whereas,which should read,"Whereas the Authority and HEA entered the second amended and restated operation and maintenance agreement for Bradley Lake.”The changes are to correct the word amendment to amended and insert the word agreement after maintenance.The next clarification is on Exhibit A,page 2, Section A5,third bullet from the bottom should read,"operator profits and mark-ups.”The change is inserting the word operator. The Maker of the Motion and the Second had no objection to include the technical changes to the Second Amendment to the O&M Agreement. Chair Borgeson noted the Second Amendment is really between AEA and HEA.Chair Borgeson informed he will vote in the affirmative. A roll call vote was taken,and the motion passed unanimously. B.Budget Amendment Approval MOTION:Mr.Johnston made a motion to approve Proposed Version 3 of the Budget Amendment.Motion seconded by Mr.Thibert. A roll call vote was taken,and the motion passed unanimously. 8.COMMITTEE ASIGNMENTS Chair Borgeson assigned the O&D Committee to complete a thorough review of the need for the trainee apprentice position at the Bradley site and report back to the Committee. 9.MEMBERS COMMENTS Mr.Zellers expressed appreciation for the Committee's approval of the amendment.He believes this is a good step forward to work on the overall agreement. Chair Borgeson expressed appreciation to Ms.Webster,Mr.Carey,and Ms.Garner for their efforts in coordinating the meeting.Chair Borgeson stated it is imperative to have the O&M Agreement in its final form and ready for approval at the November 16,2018 meeting.He encouraged members to engage their staff to spend time working on the agreement. BPMC Minutes 10/25/18 Page 2 of 3 10.NEXT MEETING DATE -November 16,2018 Chair Borgeson noted the next meeting date is November 16,2018.He advised the approval of the refund usually occurs after the audit has been completed at the December meeting. 11.ADJOURNMENT There being no further business for the committee,the meeting adjourned at 11:23 a.m. BY: Cory Borgeson,Chair Attest: Janet Reiser Alaska Energy Authority,Secretary BPMC Minutes 10/25/18 Page 3 of 3 10. 11, BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) REGULAR MEETING Thursday,Oct.25,2018 11:00 A.M. Alaska Energy Authority TELECONFERENCE MEETING 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 --Sept.21,2018 NEW BUSINESS A.Bradley O&M Agreement Resolution 2018-03 to extend O&M agreement Second Amendment to the O&M agreement B.Budget Amendment Approval Ron Woolf Memo Proposed Version 1 Proposed Version 2 Proposed Version 3 COMMITTEE ASSIGNMENTS MEMBERS COMMENTS NEXT MEETING DATE --Nov 16,2018 ADJOURNMENT BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Alaska Energy Authority,Anchorage,Alaska September 21,2018 1.CALL TO ORDER Chair Borgeson called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:02 a.m.A quorum was established. 2.ROLL CALL FOR COMMITTEE MEMBERS Cory Borgeson (Golden Valley Electric Association [GVEA]);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]);John Foutz (City of Seward);and Bob Day (Homer Electric Association [HEA]). 3.PUBLIC ROLL CALL Tom Erickson,Jocelyn Garner,Kirk Warren,Teri Webster,Brandi White (AEA);Brian Hickey, Russell Thornton (CEA);Stefan Saldanha (Department of Law);Ron Rebenitsch (Energy Engineering);Leo Quiachon,Pete Sarauer (GVEA);Rick Baldwin,Bob Day,Emily Hutchinson, Larry Jorgenson (HEA);Jocelyn Peese,Kirk Gibson (McDowell Rackner Gibson,PC);David Pease,Tony Zellers (MEA);Ryan Garner,Molly Morrison (ML&P);Bernie Smith (Public);Sunny Morrison,Deborah Mack (Accu-Type Depositions). 4.PUBLIC COMMENTS None. 5.AGENDA APPROVAL MOTION:Mr.Johnston made a motion to move the Executive Session agenda item to after Committee Assignments on the agenda.Motion seconded by Mr.Thibert.Motion passed unanimously. 6.PRIOR MINUTES -August 17,2018 MOTION:Mr.Foutz made a motion to approve the Minutes of August 17,2018.Mr.Thibert seconded the motion. Mr.Thibert requested the Minutes of August 17,2108 be corrected to reflect Chair Borgeson as Chair calling the meeting to order. The motion to approve the Minutes of August 17,2018 with the correction of Chair Borgeson calling the meeting to order passed unanimously. 7.NEW BUSINESS A.Bradley O&M Agreement Update DRAFT BPMC Minutes 9/21/18 Page |of 6 MOTION:Mr.Day made a motion to approve the existing negotiated contract.Motion seconded by Mr.Foutz. Mr.Day distributed copies to members of the existing negotiated contract.He noted the negotiated contract has been reviewed and concurred by subcommittees and legal.Mr.Day requested areas of discord be identified and communicated if the negotiated contract is not approved. Chair Borgeson requested Mr.Gibson comment regarding the contract negotiations.Mr.Gibson noted Chair Borgeson asked for a contract negotiation taskforce in August.Mr.Gibsonconvenedataskforceandreviewedthecontractintwophases;a compensation phase,and atermsandconditionsphase.Mr.Gibson worked with HEA,Mr.Baldwin,Mr.Saldanha,AEA, and the Finance Committee.Final comments were received on September 7".Mr.Gibson distributed the final draft version of the negotiated contract on September 11"and requested comment and agreement.The document before the BPMC today is the final draft version of September 11th.Mr.Gibson informed he received verbal indication there are issues with respect to indemnification and performance standards language.Mr.Gibson expects to receive those specific comments in written form this week. Ms.Reiser indicated AEA will abstain regarding terms and deliberations because AEA is party to the agreement. Chair Borgeson informed Mr.Gibson was requested to prepare a resolution to authorize an extension to the September 11"draft negotiated contract.Chair Borgeson understands HEA has not necessarily agreed to the extension.If an extension is not agreed to,AEA will have to give notice to HEA regarding the current O&M agreement.Chair Borgeson explained GVEA supports HEA being the O&M operator,but GVEA is not ready to vote for the agreement today. GVEA believes additional changes to the terms and conditions,including,but not limited to,a rolling two-year notice and performance guarantees and metrics are necessary in the contract. Additionally,GVEA requests to see the proposed budget amendment that would support the September 11"draft negotiated contract.He noted the additional annual cost could range from $500,000 to $1,000,000,with the contract rates going into effect January 1.A budget adjustment would be required and no budget information has been provided.GVEA counsel has been working on these negotiations in conjunction with counsel of MEA and CEA.GVEA counsel is expected to provide a revision and response to the September 11"draft negotiated agreement to AEA and HEA by the middle of next week. Mr.Thibert informed legal counsel of CEA has reviewed the September 11"draft negotiated contract.CEA legal counsel has prepared questions of the draft,a red-lined version on some of the provisions,and is in the process of coordinating with the other utilities.CEA is unprepared to approve the September 11"draft negotiated agreement today.Mr.Thibert assumed a 60-day contract extension would be brought before the members at today's meeting. Mr.Izzo commented if the motion is tabled,he requests a commitment be made for all issues to be resolved before the next BPMC meeting on October 19"and a vote be taken then. Ms.Reiser requests any issues be resolved before October 18",because of notification provisions. DRAFT BPMC Minutes 9/21/18 Page 2 of 6 Chair Borgeson encouraged all counsel provide their additional comments by next Wednesday,after which negotiation can occur with HEA.A special BPMC meeting to vote can then be called. Mr.Gibson recommended the Committee take a 60-day extension to provide the time to complete negotiations and make the necessary budget amendments.Mr.Gibson noted HEA has a commitment that BPMC wants HEA to be the operator. Mr.Thibert agreed with Mr.Gibson. Mr.Johnston asked if HEA will consent to a 60-day extension.Mr.Day stated he is not empowered to comment on the acceptability of a 60-day extension. MOTION:Mr.Thibert made a motion to table the approval of the existing negotiatedcontractuntilOctober19'".Motion seconded by Mr.Izzo. Aroll call vote was taken,and the motion to table passed,with HEA voting no and AEA abstaining. MOTION:Mr.Johnston made a motion to approve Resolution 2018-02.Motion seconded by Mr.Thibert. Mr.Thibert expressed support for HEA to continue to be the operator,and the motion to extend the current HEA operator agreement for two months provides time for legal to answer all of the questions within the negotiations. A roll call vote was taken,with HEA and AEA abstaining. Mr.Gibson advised the motion requires an affirmative vote from AEA to pass because it concerns budget issues and operations.Mr.Gibson requested AEA reconsider the vote.Ms. Reiser explained a different procedural understanding and requested advice from counsel,Mr. Saldanha. The Committee took a 5-minute at-ease. Ms.Reiser informed AEA reconsidered its vote as yes on the procedural motion. The motion to approve Resolution 2018-02 passed,with HEA abstaining. B.Battle Creek Construction Update Ms.Reiser requested Mr.Rebenitsch provide the Battle Creek construction update.Mr. Rebenitsch informed he will give a greater detailed presentation during executive session.The BPMC was provided progress notes and pictures entitled West Fork Upper Battle Creek Update dated September 21,2018.Mr.Rebenitsch highlighted the Lower Access Road is substantially complete.He believes the contractor has done a quality job.The struggle with pay applications include problems with obtaining accurate survey data.Issues have been resolved and the cost of the Lower Access Road is close to equal to the original budgeted amount. Mr.Rebenitsch informed the road pioneering is out to the Upper Access Road above Wall #2 and has stopped.Materials for the wall have not yet been received.An alignment change is DRAFT BPMC Minutes 9/21/18 Page 3 of 6 being proposed which would increase the cost by approximately $1.2 million.Mr.Rebenitsch believes the change will ultimately provide a better end product.The general excavation and rock excavation is within the +/-25%of the specified contract quantities.Mr.Rebenitsch does not believe the contractor will be able to complete the road to the diversion this year.The 2019 work year is expected to be very busy.Mr.Rebenitsch described the road pictures provided. The road contains steep grades.There is no intent and no reason to use the road during the wintertime.The system will be drained in the late fall. C.Generator Report Mr.Day reminded members of the high partial discharge readings reviewed at last month's meeting.The O&D approved a $32,000 inspection which was coordinated with the tie outage that began on Monday September 17th.The generator inspection was completed yesterday September 20th.Reassembly of the unit has progressed and will hopefully be online by Monday September 23.Mr.Day described the photos of the inspection,including corona testing, semiconductor degradation,and archive photos of stator installation and brazing of the windings.The generator is 27 years old.The full report is not yet complete.Mr.Day highlighted the inspection and the Generator expert suggested the generator should be in good working condition for the next year of operation.After that time there is increased risk of major failure, the repairs need to be completed within the next year to 18 months.Mr.Day anticipates the rotor will be pulled and the material degradation will be repaired at a cost range of $500,000 to $1.5 million during a three to four-week timeframe.A scope of work and budget for the repair is being developed.Mr.Day noted there is a scheduled 60-day tie line outage in February that could provide an opportunity for the repair to be completed while Bradley is unavailable to the northern utilities.Mr.Day stated that in his opinion if the unit is run to failure,the repair costs could be in range of $5 million to $7 million. 8.REPORTS A.O&D Report Mr.Sarauer stated he is the Vice-Chair of the Bradley O&D Committee and the Chair,Jeff Warner,is out of town.A written report will be provided to the Committee by Mr.Warner upon his return.Mr.Sarauer concurred the O&D Committee approved the recent outage and inspection Mr.Day discussed. B.Operators Report Mr.Day directed members to the Operator's Report provided in the packet.Mr.Day commented the work seems to have slowed for the contractor at Battle Creek and the number of workers has decreased.The equipment storage building material has arrived onsite and work has begun.The fish water control automation system was unstable at certain flows which resulted in variation.Staff is working with Emerson to resolve the issues.The public dock is closed.FERC personnel visited the site to conduct the annual inspection.The comments were positive concerning the state of the plant and the cleanliness.Brush was cleared from the side of the spillway and at the dam sidewalls.An additional round of weed control is scheduled for September 28". Mr.Day informed the operations were normal.Unit 2 was 100%available.Unit 1 was 99.89%, because it was shut down by the dispatcher due to system disturbances for .8 hours.The gate testing on the diversion tunnel is complete and the broken switch has been repaired. DRAFT BPMC Minutes 9/21/18 Page 4 of 6 Cc.Budget Subcommittee Report Ms.Garner reviewed the provided 4"Quarter Report for FY 2018.She noted the unaudited refund for operations and maintenance is at $1 million as of June 30.The audit is tentatively scheduled for the beginning of November,and will be presented and approved at the December meeting.The O&M refunds will be received after that process.The refund for the R&C Fund was about $400,000 and is shown on the balance sheet side.Ms.Garner showed the capital purchases for Bradley Lake,as a whole,and informed the budget was $1.3 million and actual spent was $950,000.The operation and maintenance budget was $4.5 million and actual spentwas$3.9 million.The only project completed within the R&C Fund was the SVC replacement. The spillway raise did not occur and the fire alarm system replacement is now in FY19. Ms.Garner showed the Battle Creek capital purchases and reviewed the administrative costs budgeted at $43,000 and actual spent was $137,000.The majority of the overage is due to the approved owners'representative. 9.COMMITTEE ASIGNMENTS Chair Borgeson assigned the Finance Committee to review the costs and proposed rates that will be incurred with the execution of anew HEA O&M agreement,and coordinate a meeting with the BPMC members in a timely manner. 10.MEMBERS COMMENTS A.Member Comments Mr.Day expressed appreciation for joining the meeting today and looks forward to a successful completion of the contract negotiations. Chair Borgeson expressed appreciation to staff for their efforts and thanked Mr.Day for the work at Bradley. A brief at-ease was taken. MOTION:Mr.Johnston made a motion to go into Executive Session to discuss confidential financial conditions with respect to Battle Creek construction claims and federal land fees.The motion was seconded. Motion passed without objection. 7.D.Executive Session:11:20 a.m. e Battle Creek Construction Claims e Federal Land Fees The Committee reconvened its regular meeting at 11:50 a.m. 11.NEXT MEETING DATE -October 19,2018 12.ADJOURNMENT DRAFT BPMC Minutes 9/21/18 Page 5 of 6 There being no further business for the committee,the meeting adjourned at 11:51 a.m. BY: Cory Borgeson,Chair Attest: Janet Reiser Alaska Energy Authority,Secretary DRAFT BPMC Minutes 9/21/18 Page 6 of 6 HAi RESOLUTION OF BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE RESOLUTION NO.2018 -03 Authorizing the Second Amendment to the Second Amended and Restated O&M Agreement Introduction:The Bradley Lake Project Management Committee ("BPMC')is in the process of developing a new O&M Agreement governing the terms and conditions under which the Bradley Lake Hydroelectric Project ("Project”)will be operated.The currently effective O&M Agreement is set to terminate on January 1,2019.Additional time is needed by the BPMC to finalize the terms and conditions under which the Operator shall perform its duties at the Project. Purpose of Resolution No.2018-03:Resolution No.2018-03,authorizes the Alaska Energy Authority ("Authority”)to enter a Second Amendment with the Operator,Homer Electric Association,Inc.("HEA”),to extend the provisions of the current O&M Agreement governing the current term and notice of termination of the O&M Agreement for a period of three (3)additional months,and provides that the compensation to be paid to the Operator during the period January 1,2019 through March 31,2019 is in accordance with the compensation criteria and rates specified in Exhibits A ("Compensation”)and A-1 ("Calculation(s)of Compensation Payment”)to the Second Amendment. RESOLUTION NO.2018-03 WHEREAS,the Bradley Lake Project Power Sales Agreement (the "Power Sales Agreement”) provides that the BPMC shall arrange for the operation and maintenance of the Project and Project Related Facilities; WHEREAS,the BPMC is authorized under its Bylaws adopted pursuant to the terms of the Power Sales Agreement to approve agreements for the operation and maintenance of Project and Project related facilities; WHEREAS,to provide for the operation and maintenance of the Project and Project Related Facilities,the BPMC entered the Master Maintenance and Operating Agreement with the Authority under which the Authority shall enter contracts necessary to perform services for,or operation and maintenance of,the Project and Project Facilities; WHEREAS,the Authority and HEA entered the Second Amendment and Restated Operation and Maintenance for Bradley Lake Hydroelectric Project effective July 1,2008 (the "O&M Agreement'),to inter alia,provide that HEA would continue as Operator and operate and maintain the Project in accordance with the terms and conditions of the O&M Agreement; WHEREAS,the BPMC authorized the Authority and HEA to enter the First Amendment to The Second Amended and Restated Operation &Maintenance Agreement for Bradley Lake Hydroelectric Project ("First Amendment”)on June 15,2016; Page 1 of 2-BPMC Resolution 2018-03:Authorizing Second Amendment to the Second Amended and Restated O&M Agreement WHEREAS,the First Amendment extended the provisions of the O&M Agreement governing the current term and notice of termination of the O&M Agreement for a period of six (6)months to January 1,2019; WHEREAS,the BPMC has decided that additional time is required to handle issues by and between BPMC Participating Utilities and has authorized the Authority to enter a Second Amendment to The Second Amended and Restated Operation &Maintenance Agreement for Bradley Lake Hydroelectric Project ("Second Amendment”)with HEA on October 25,2018 (Second Amendment attached hereto); WHEREAS,the Second Amendment extends the provisions of the O&M Agreement governing the current term and previously presented notice of termination of the O&M Agreement for a period of three (3)months through March 31,2019 and provides that the compensation to be paid to the Operator during the period January 1,2019 through March 31,2019 is in accordance with the compensation criteria and rates specified in Exhibits A ("Compensation”)and A-1 ("Calculation(s)of Compensation Payment”)to the Second Amendment. NOW,THEREFORE,IT IS HEREBY RESOLVED BY THE BPMC,that additional time is needed by the BPMC to finalize the terms and conditions under which the Operator shall perform 'its duties at the Project;and, BE IT FURTHER RESOLVED BY THE BPWMC,that a period of three (3)months should be enough time to finalize the terms and conditions under which the Operator shall perform its duties at the Project;and, BE IT FURTHER RESOLVED BY THE BPMC,that the compensation to be paid to the Operator during the period January 1,2019 through March 31,2019 shall be in accordance with the compensation criteria specified in Exhibits A ("Compensation”)and A-1 ("Calculation(s)of Compensation Payment')to the Second Amendment;and, BE IT FURTHER RESOLVED BY THE BPMC,that the Authority is authorized by the BPMC to enter a Second Amendment with the Operator,HEA,to extend the provisions of the current O&M Agreement governing the current term and notice of termination of the O&M Agreement for a period of three (3)additional months (until March 31,2019),and to provide that the compensation to be paid to the Operator during the period January 1,2019 through March 31,2019 shall be in accordance with the compensation criteria and rates specified in Exhibits A ('Compensation')and A-1 ("Calculation(s)of Compensation Payment')to the Second Amendment;and, BE IT FURTHER RESOLVED BY THE BPMG,that the above Recitals be incorporated and made part of to this Resolution No.2018-03. Dated at Anchorage Alaska,this 25th day of October 2018. Chair Attest: Secretary Page 2 of 2 -BPMC Resolution 2018-03:Authorizing Second Amendment to the Second Amended and Restated O&M Agreement SECOND AMENDMENT TO THE SECOND AMENDED AND RESTATED OPERATION &MAINTENANCE AGREEMENT FOR BRADLEY LAKE HYDROELECTRIC PROJECT This SECOND AMENDMENT TO THE SECOND AMENDED AND RESTATED OPERATION & MAINTENANCE AGREEMENT FOR BRADLEY LAKE HYDROELECTRIC PROJECT ("Second Amendment”)dated effective as of October 25,2018,is entered into by and between the Alaska Energy Authority ("Authority”)and Homer Electric Association,Inc.("HEA”). WITNESSETH WHEREAS,the Authority is a public corporation of the State of Alaska duly created,organized,and existing pursuant to AS 44.83,and authorized by law to sell electric power generated by the Bradley Lake Hydroelectric Project ("Project”); WHEREAS,the Authority is authorized under AS 44.83.396 to enter agreements for the operation and maintenance of power projects owned by the Authority with a qualified utility; WHEREAS,the Bradley Lake Project Power Sales Agreement (the "Power Sales Agreement”) provides that the Bradley Lake Project Management Committee ("BPMC')shall arrange for the operation and maintenance of the Project and Project Related Facilities; WHEREAS,the BPMC is authorized under its Bylaws adopted pursuant to the terms of the Power Sales Agreement to approve agreements for the operation and maintenance of Project and Project Related Facilities; WHEREAS,to provide for the operation and maintenance of the Project and Project Related Facilities,the BPMC entered the Master Maintenance and Operating Agreement with the Authority under which the Authority shall enter contracts necessary to perform services for,or operation and maintenance of,the Project and Project Facilities; WHEREAS,the Authority and HEA entered the Second Amendment and Restated Operation and Maintenance for Bradley Lake Hydroelectric Project effective July 1,2008 (the "O&M Agreement'), to inter alia,provide that HEA would continue as Operator and operate and maintain the Project in accordance with the terms and conditions of the O&M Agreement; WHEREAS,the Authority,before executing a contract or contract amendment for operation or maintenance of the Project or Project related facilities,must submit the contract or amendment to the BPMC for its review and approval under the Master Maintenance and Operation Agreement; WHEREAS,the BPMC authorized the Authority and HEA to enter the FIRST AMENDMENT TO THE SECOND AMENDED AND RESTATED OPERATION &MAINTENANCE AGREEMENT FOR BRADLEY LAKE HYDROELECTRIC PROJECT ("First Amendment”)on June 15,2016; WHEREAS,the First Amendment extended the provisions of the O&M Agreement governing the current term and notice of termination of the O&M Agreement for a period of six (6)months to January 1,2019; WHEREAS,the BPMC has decided that additional time is required to handle issues by and between BPMC Participating Utilities and authorized the Authority and HEA to enter this Second Amendment on October 25,2018; SECOND AMENDMENT TO O&M AGREEMENT PAGE 1 of 2 WHEREAS,the Second Amendment extends the provisions of the O&M Agreement governing the current term and previously presented notice of termination of the O&M Agreement for a period of three (3)months through March 31,2019 and provides that the compensation to be paid to the Operator during the period January 1,2019 through March 31,2019 is in accordance with the compensation criteria and rates specified in the attached Exhibit A ("Compensation”)and Exhibit A- 1 ("Calculation(s)of Compensation Payment”);and, WHEREAS,the BPMC has reviewed and approved this Second Amendment. NOW,THEREFORE,THE PARTIES AGREE AS FOLLOWS: 1.Section 2(b)of the O&M Agreement shall be amended to read as follows: Except as expressly provided in this section,the term of this Agreement shall be five (5) years from the Effective Date and shall be automatically renewed for successive five-year terms until terminated as provided herein and subject to the termination rights set forth in Section 2(c)and Section 7(d).Notice of termination by either party shall be given two years in advance of the end of any term;provided,however,that the current,(or second)term of this Agreement shall be extended to March 31,2019,and the date for which termination notice shall be given shall be correspondingly extended to March 30,2017. 2.Section 10(d)of the O&M Agreement shall be amended to read as follows: Subject to the availability of funds,the Authority shall reimburse the Operator for all costs under this Agreement.For the period January 1,2019 to March 31,2019,the compensation to be paid to the Operator shall be in accordance with the compensation criteria and rates specified in Exhibit A and Exhibit A-1 to the Second Amendment to the Second Amended and Restated Operation &Maintenance Agreement for Bradley Lake Hydroelectric Project, dated October 25,2018. 3.Except as amended in this Second Amendment,the terms and conditions of the O&M Agreement remain in full force and effect. IN WITNESS WHEREOF,the Parties have caused this Second Amendment to be executed the day and year first above written. HOMER ELECTRIC ASSOCIATION,INC. By Bradley P.Janorschke General Manager ALASKA ENERGY AUTHORITY By Janet Reiser Executive Director SECOND AMENDMENT TO 0&M AGREEMENT PAGE2 of 2 EXHIBIT A SECOND AMENDMENT TO THE SECOND AMENDED AND RESTATED OPERATION &MAINTENANCE AGREEMENT FOR BRADLEY LAKE HYDROELECTRIC PROJECT COMPENSATION A1.Payments will be made on approved invoices submitted for months during which costs are incurred.Except for fixed price(s) and fixed fees,compensation shall be cost- based on actual costs to the Operator for providing services.Provisions for Audit are contained in Section 6 of the Agreement. A2.Payments shail be calculated in accordance with this Exhibit A.Payments are limited to amount(s)approved and included in the annual Bradley O&M budget, Emergency Expenditures,and pre-approved Extraordinary Costs as described and defined in the Agreement.The Operator expressly has no right to any payment in excess of these amounts absent approval from the Authority and the BPMC through an amended budget. A3.Payments shall be made to the Operator consistent with Section 10 of the Agreement. A4.There are four categories of compensation payable to Operator for the services provided under this Agreement:(1) Direct Costs of Direct Labor;(2)Indirect Costs;(3)Third-Party Direct Costs;and (4) Other Pre-Approved Operator Labor.The following terminology and explanations are applicable to this Exhibit A;any inconsistencies appearing in this Exhibit shall be resolved in accordance with the terminology in Section 1 of the Agreement. A4.1 Direct Costs of Direct Labor -Base salary and/or wages,exclusive of Fringe Benefits or other Indirect Costs and Fees. Base salary and/or wages for those employees (maintenance,operation,facility training,and supervision)assigned by the Operator to the Bradley Project shall be fixed at the rate specified in Exhibit A-1 for the duration of the Agreement. EXHIBIT A TO SECOND AMENDMENT TO O&M AGREEMENT -COMPENSATION A4.2 Indirect Costs -Allowable expenses that,because of their incurrence for common or joint cost objectives,are to be allocated to this Agreement using a specified Indirect Cost Rate of 155 percent calculated on the straight time hourly rate for any Direct Costs of Direct Labor.The Indirect Cost Rate of 155 percent is fixed for the duration of the Agreement. A4.2.1.Indirect Costs include,but are not limited to,the following categories:Fringe Benefits,Overhead (General & Administrative Expenses -including Indirect Labor),and Allocated Home Office Overhead (if applicable). A4.2.1.a.Fringe Benefits -Costs for items such as: e Vacation time,holidays and authorized leave; e Group and Worker's Compensation Insurance; e Deferred Compensation/Retirement plans; e Social Security and Unemployment Taxes;and e Group Medical plan and Life Insurance Premiums. A4.2.1.6.Overhead -Costs for items such as the following,if they are not included in Direct Costs: e Indirect Labor (Supervisory, Administrative,etc.,base salary or wages) e Recruiting expenses,travel,food and lodging; e Rent,heat,power,light and janitorial services; PAGE 1 of 2 e Office supplies,reproduction costs, communications; e Upkeep and depreciation of equipment and computers; e Rentals of equipment and computers; and, e Business Insurance premiums not billed to clients. A4.2.1.c.Allocated Home Office Overhead (if applicable)- Costs for management,supervisory,and administrative functions which benefit separate unit operations. A4.3 Third-Party Direct Costs ("Expenses")- Pre-approved unit priced items,actual costs for specific subcontracts approved in accordance with this Agreement,and actual costs for the following: e Transportation (economy rate/air- coach); e Food and lodging (Generally,not to exceed agency per diem rates); e Incidental travel expenses;and, If not recovered in the Indirect Cost Rate - the following: e Equipment &computer use at pre- approved rates; e Specific materials and supplies;and, Other pre-approved direct expenses. Each Expense is limited to reasonable costs which do not exceed that which would be incurred by an ordinarily prudent person in the conduct of competent business. A4.4,Other Pre-Approved Operator Labor. Any Operator Direct Labor for Job Classifications not identified in Exhibit A-1. All such labor must be pre-approved by the Authority and the BPMC and the payment for such labor shall be limited to the Direct Costs of Direct Labor plus Fringe Benefits for such employee.The Indirect Cost Rate does not apply to Other Pre-Approved Operator Labor, EXHIBIT A TO SECOND AMENDMENT TO O&M AGREEMENT -COMPENSATION and no such markup shall be paid to the Operator for this type of service. A5.Non-allowable Costs -Payments for the following items and certain other costs defined in 48 CFR Part 31 and related regulations are not allowable.Such costs shall not be included as billable Direct or indirect Costs or in the calculation of the Indirect Cost Rate.The non-allowable costs include: e Interest and other financial costs; «Contributions and donations; e Federal income taxes &tax return preparation fees; e Deferred state income taxes; e Bad debts; e Fines and penalties; e Entertainment,social club memberships,etc.; e Goodwill; e Provisions for contingencies; e Losses on other contracts and related legal fees; e Profits and/or markups; Legal fees,etc.,related to contract claims;and, e Costs not approved by the Regulatory Commission of Alaska for recovery in rates. A6.Markup of any costs as compensation for administration,management or handling, etc.,is prohibited.Costs of such efforts are included within the elements of Direct Labor and/or Indirect Labor.Compensation for any risk associated with incurring costs is included within Indirect Cost Rate. PAGE2 of 2 EXHIBIT A-1 TO SECOND AMENDMENT TO THE SECOND AMENDED AND RESTATED OPERATION &MAINTENANCE AGREEMENT FOR BRADLEY LAKE HYDROELECTRIC PROJECT CALCULATION(S)OF COMPENSATION PAYMENT 1.Compensation for services to be provided by Operator under the O&M Agreement shall be based on the Compensation categories set forth in Exhibit A and the applicable discussion of Calculation(s)of Compensation Payment presented below.Payments are limited to amount(s) approved and included in the annual Bradley O&M budget,Emergency Expenditures,and pre- approved Extraordinary Costs as described and defined in the Agreement.The Operator expressly has no right to any payment in excess of these amounts absent approval from the Authority and the BPMC through an amended budget. 2.Payments for Direct Cost of Direct Labor will be based on the number of hours expended by each job classification multiplied by the applicable Direct Labor Rate.Job Classifications and Direct Hourly Rates are fixed for the duration of this Agreement.An estimate of Labor Hours by Job Classification shall be included by the Operator in the draft annual O&M budget submitted to the BPMC.Work shall be performed by the lowest paid qualified personnel.Further,individuals will charge time at rates equivalent to skill levels commensurate with the work they perform.The following Direct Hourly Rates shall be fixed as listed below for the duration of this Agreement. Rates may be renegotiated for successive terms: FUNCTION STRAIGHT TIME ($/hr)OVERTIME ($/hr)|DOUBLE TIME ($/hr)Maintenance $56.40 $84.60 $112.80 Operation $63.17 $94.76 $126.34 Facility Trainee*$47.61 $71.42 $95.22 Supervision $104.31 $104.31 $104.31 *Facility Trainee position must be approved in advance by the BPMC either in the annual budget or through an amendment before Operator may hire and/or bill for this position. 3.Payments for Indirect Costs shall be based upon the number of hours of Direct Labor at the applicable Straight Time Rate multiplied by the Indirect Cost Rate (IDCR)of 155 percent. 3.1 The IDCR is fixed for the duration of this Agreement and may be renegotiated for successive terms. 3.2 Revisions to the IDCR may be implemented only by an amendment to this Agreement. Further,adjustment of any payments made based on provisional IDCRs will not be done without a contract Amendment that fully explains the amount of the adjustments. 4.Payments for Third-Party Direct Costs (Expenses)will be made for actual substantiated costs which are directly chargeable to and necessary for performance of services assuming they are not recovered through the Indirect Cost Rate."Markup”on any Third-Party Direct Costs are prohibited (reference paragraph A6 of Exhibit A). EXHIBIT A-1 TO SECOND AMENDMENT TO O&M AGREEMENT - CALCULATION(S)OF COMPENSATION PAYMENT PAGE 1 OF 2 5.Other Pre-Approved Operator Labor.Includes any Operator Direct Labor for Job Classifications other than Maintenance,Operation,Supervision and Facility Trainee.All such labor must be pre-approved by the Authority and the BPMC and the payment for such labor shall be limited as described in Section A.4.4.of Exhibit A. EXHIBIT A-1 TO SECOND AMENDMENT TO O&M AGREEMENT - CALCULATION(S)OF COMPENSATION PAYMENT PAGE 2 OF 2 Bradley Lake Budget Subcommittee Interoffice Memorandum DATE:October 15,2018 TO:Bradley Project Management Committee FROM:Bradley Lake Budget Subcommittee RE:Bradley Lake FY19 Budget Revision No.2 The Budget Subcommittee is forwarding three versions of the Bradley Lake Budget Revision No.2.All three versions adjust: 1.Interest income:increased by $16,754 2.Increase the Operating Reserve to 20%of operating expenses. The three FY19 budget amendment versions offer options as it pertains to FY19 Budget for proposed new operator contract starting January 1,2019: ©Version 1-$350,025 increase to FY19 budget.Rates changed to reflect those identified in the contract for Direct Labor categories of Maintenance,Operations,Facility Trainee and Supervision.Removes upper management and administrative and general hours.A 155% Indirect Rate is applied to Direct Labor based on straight time rates.This is to recover benefits and general and administrative costs that HEA provides to the project. e Version 2 -$181,253 increase to FY19 budget.Same as Version 1 but all Facility Trainee hours/costs removed. ©Version 3 -$289,918 increase to FY19 budget.Same as Version 1 but with trainee at projected actual costs.The indirect rate is not applied to trainee position. The Budget Subcommittee met and recommends Version 3 based on the O&D Committee recommendation for trainee staffing at the Plant. BB of} f Version 1 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT 2019 DRAFT BUDGET -AMEND 2 DATE:10/19/18 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT 2019 Budget Contents Schedule Description Page # Overview of Budget Changes between FY19 Amendment 1 Budget and FY19 Amendment 2 Budget 3-4 Schedule A Budget Summary 5 Schedule A-1 Capital Purchases not funded by R&C 6 Schedule B Operations &Maintenance Budget 7-13 Schedule C Monthly Utility Contributions 14 Schedule D R&C Fund Disbursements and Repayments 15 Schedule E Battle Creek Capital Purchases 16 Schedule F Battle Creek Administrative Costs 17 Schedule G Battle Creek Monthly Utility Contributions 18 10/12/20188:10 AMH:\Accounting\AEA FY 19 FS Shared Files\Bradley Lake\Budget\V1-2019-BradleyBudget-DRAFTAmend2-092418.xIsx 2 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Overview of Budget Changes between FY19 Amendment 1 Budget and FY19 Amendment 2 Budget FY19 Amend 1 Budgeted Utility Contributions 18,717,301 From Schedule A REVENUES 1)Increase in interest income (16,754) (16,754) EXPENSES 2)Increase in Operations &Maintenance 305,649 3)Increase in Transfer To(From)Operating Reserve 61,130 366,779 Net change in utility contributions 350,025 FY19 Proposed Amendment 2 Budgeted Utility Contributions 19,067,325 Notes: 1)Increase in interest income Utility contributions increase and more current cash flow projections are available to use to estimate interest income 2)Increase in Operations &Maintenance Schedule B updated to reflect new O&M contract with HEA 3)Increase in Transfer to(from)Operating Reserve - operating reserve is required to be 20%of budgeted operating expense 10/12/20188:10 AMV1-2019-BradleyBudget-DRAFTAmend2-092418.xlsxOverview Page 3 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Budget Summary Schedule A proposed changes made by Amend 2 highlighted FY2018 FY2019 7"FY2019 FY2019 FY2019 Inc(Dec)From FY2016 FY2017 03/05/18 Amended Original Amend 1 Amend 1 Amend 2 PY Amended Bradley Lake (excluding Battle Creek shown below)Actuals Actuals Budget Budget Budget Change DRAFT budget Budget Revenues,Expenses &Changes in surplus Revenues Utility Contributions (sch C)17,828,513 17,172,295 19,819,362 18,496,810 18,717,301 350,025 19,067,326 (752,037) Interest Income 1,930,547 1,991,555 1,845,000 1,855,000 1,895,000 16,754 1,911,754 66,754 19,759,060 19,163,850 21,664,362 20,351,810 20,612,301 366,779 20,979,080 (685,282) Expenses Operations &Maintenance (sch B)4,273,634 4,011,783 4,593,387 4,491,916 4,531,908 305,649 4,837,557 244,170 Renewals/Replacements (R&C Fund Repayments)(sch D)2,692,710 2,476,905 2,793,307 2,746,068 2,746,068 0 2,746,068 (47,239) Non R&C Capital Purchases (sch A-1)26,444 89 1,307,000 60,000 272,500 0 272,500 (1,034,500) Transfer To(From)Operating Reserve (8,747)(85,531)(112,145)(20,294)(12,296)61,130 48,834 160,979 Debt Service (net of Capital Reserve Reductions)12,494,600 12,426,200 12,778,100 12,778,588 12,778,588 0 12,778,588 488 Arbitrage Transfer 281,419 334,404 304,713 295,533 295,533 0 295,533 (9.180) 19,759,060 19,163,850 21,664,362 20,351,810 20,612,301 366,779 20,979,080 |(685,283) Surplus (Deficit)0 0 0 0 0 0 0 Other Project Costs -Battle Creek Revenues,Expenses &Changes in surplus Revenues -Battle Creek Utility Contributions (sch G)0 800,000 400,000 0 0 (°)0 (400,000) Utility Contributions (sch G)0 0 633,356 2,541,824 2,284,560 (°)2,284,560 1,651,204 Capital Reserve Contributions it)0 2,796,378 0 0 0 0 (2,796,378) Other Available Funds 0 0 499,985 0 0 0 0 (499.985) 0 800,000 4,329,719 2,541,824 2,284,560 0 2,284,560 (2,045,159) Expenses -Battle Creek Battle Creek Administrative costs (sch F)0 0 43,800 199,743 453,988 0 453,988 410,188 Capital Purchases (sch E)(°)800,000 400,000 O°0 0 0 (400,000) Capital Purchases -Revenue Fund (sch E)0 0 16,500 0 0 0 0 (16,500) Transfer To(From)Operating Reserve 0 0 8,760 31,349 82,038 0 82,038 73,278 Debt Service 0 0 903,064 1,880,894 ©1,748,534 0 1,748,534 845,470 IRS Subsidy (¢)0 (?)(¢]0 0 0 0 Cost of Issuance 9th Series (¢)0 21,217 0 0 0 0 (21,217) Capital Reserve Contribution 0 0 2,936,378 429,838 0 0 0 (2,936,378) Arbitrage Transfer t)0 0 0 0 0 0 0 0 800,000 4,329,719 2,541,824 2,284,560 0 2,284,560 |(2,045,459) Surplus (Deficit)0 0 (0)0 0 0 0 r -_A RO ”bs at a ee co ee oe ee Fee oe a emer ee}nT ee eer Te Ss pee ee eeoe ec ce reee we tea ee ar een Se ED me Date amt wet ne d Other Information Operating Reserve *1,116,353 802,357 918,677 898,383 906,382 967,511 Operating Reserve -Battie Creek”0 0 8,760 39,949 90,798 90,798 Monthly Contributions 1,654,119 1,431,025 3,303,227 1,541,401 1,559,775 1,588,944 Monthly Contributions Battle Creek 0 0 211,119 211,819 190,380 190,380 *Required to be 20%of budgeted operating expense 10/12/20188:10 AMV1-2019-BradleyBudget-DRAF TAmend2-092418.xlsxSch A Page 4 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Capital Purchases Not Funded by R&C Fund Schedule A-1 FY17 FY18 FY18 FY19 @03/31/18 Approved Capital Project Description Actuals Actuals Projected Budget {Comments Replace/Automate Fish Water Valves &Actuators 89 231,490 385,000 _|Phase one is the new radio upgrades completed 2018.Will likely extend into 2019,mostfundscomefrom2018excessmoniesonloaderandcrane. Equipment storage shed (unheated bus barn)-11,646 100,000 +[Design Estimate is 470,000.This project was moved to the FY19 R&C fund $500,000. 1 ton Flatbed with Plow --62,000 - |purchased 2018 for approx.$62k Battle Creek Bridge Repair Refurbishment (2)---200,000 [Moved to F¥2019 Mobil Crane 40 to 50 tons (used)-69.920 69,920 -[purchased 2018 for 31,200 +10,000 in repair.Excess FY18 budget moved to fish water Replace Michigan Loader --250,000 -purchased 2018 for approx.$250,000,Excess FY18 budget moved to fish water. Upgrade Crews Quarters\Residence Kitchen -1,850 --[Moved to O&M budget FERC 542.Schedule B Replace 1988 Suburban Ambulance -$1,977 §8,000 -purchased 2018 for approx.$58k 1/2 ton Pick up truck -33,028 33,028 -]purchased 2018 for approx.$32k Replace High Bay Lighting in Power Plant 14,220 20,000 -§FY19 replace high bay lighting is in the FY19 O&M budget .. ...Purchase long lead parts Note we are monitoring Unit 2 for any degradation.We may needTurbineNozzleRepair60,000 to make a mid year budget adjustment if work is required. Tire machine 42.500 The current tire machine that is on site is from 1990.Used to change tires on trucks and,automobiles from summer tires to snow tires. Total Non R&C Capital Purchases 89 414,131 977,948 272,500 10/12/20188:10 AMV1-2019-BradleyBudget-DRAFTAmend2-092418.xlsxSch A-1 Page 5 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Operations &Maintenance Budget Schedule B HEA 3,209,154 HEA 2,704,303 HEA 2,959,282 HEA 3,264,931 CEA 190,187 CEA 183,499 CEA 114,448 CEA 114,448 AEA 1,754,770 AEA 1,705,585 AEA 1,458,178 AEA 1,458,178 propsed changes made by Amend2 highlighted FY17 Fv18 FY19 Fy19 FY17 FY18 FY19 Increase Amended (Over)Under Approved Actual @ (Over}Under Approved OLD NEW FY19 =DRAFT](Decrease) Budget Actual Budget to date Budget 11/30/17 |Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original y by cost type Labor &Benefits 2,005,079 1,533,371 471,708 1,889,814 658 383 1,231,431 1,900,742 983,203 558,099 1,541,302 (359,440) IOCR 155%-------665,089 665,089 665,089 Travel 132,950 27,009 105,941 76,950 4,978 71,972 33,950 33,950 33,950 33,950 - Training 49,300 35,736 13,564 49,300 8,130 41,170 49,300 49,300 49,300 49,300 - Contractual 1,217,418 850,184 367,234 841,062 176,194 664 868 1,033,216 1,033,216 1,033,216 4,033,216 - Supplies &Materials 229,358 113,151 116,207 183,345 77,130 106,215 204,345 204,345 204,345 204,345 - Other Costs 381,744 298,031 83,713 387,818 33,410 354,408 69,818 69,818 69,818 69,818 - Equipment,Furniture and Machinery 11,500 9,553 1,947 7,000 3,091 3,909 7,000 7,000 7,000 7,000 - Maintenance Projects ----795 (795)----- Administrative Costs 1,126,761 1,144,749 (17,988)1,158,098 418,402 739,696 1,233,537 1,233,537 1,233,537 1,233,537 - 5,154,110 4,011,785 1,142,326 4,593,387 1,380,513 3,212,874 4,531,908 3,614,369 3,854,355 4,837,557 305,649 FERC 535 -Operation Supervision &Engineering Operations Sup/Eng Bradley Lake Operating Labor &Benefits 299,649 266,820 32,829 265,587 114,153 151,434 270,953 135,477 53,597 189,074 (81,879) IDCR 155%:fa :--:fa -77,849 77,849 77,849 Travel 10,450 9,452 998 10,450 347 10,103 10,450 10,450 10,450 10,450 - Training 9,300 11,171 (1,871)9,300 1,911 7,389 9,300 9,300 9,300 9,300 - Contractual 1,400 300 1,100 1,000 ba 4,000 1,000 4,000 1,000 1,000 - Supplies &Materials 4,100 5,781 (1,681)4,000 367 3,633 4,000 4,000 4,000 4,000 : Bradley Lake Operating Total 324.899 293.523 31,376 290,337 116,778 173,559 295,703 160,227 166,196 291,673 (4.030) FERC 535 -Operation Supervision &Engineering Total 324,899 293,523 31,376 290,337 116,778 173,559 295,703 JHEA 160,227 JHEA 156,196 JHEA 291,673 [HEA {4,030) FERC 537 -Hydraulic Expenses Hydraulic Expenses Bradiey Lake Operating Labor &Benefits 92,746 65,670 27,076 94,453 28,821 65,632 98,853 49,426 36,335 85,761 (13,092) IDCR 155%::::::*:49,338 49,338 49.338 Contractual 4,000 5,647 (1,647)2,000 -2,000 2,000 2,000 2,000 2,000 - Supplies &Materials 2,900 886 2,014 2,000 352 1,648 2,000 2,000 2,000 2,000 - Bradley Lake Operating Total 99,646 72,202 27,444 98,453 29,173 69,280 102,853 §3,426 89.673 139,099 36,246 FERC 537 -Hydraulic Expenses Total 99,646 72,202 27,444 98,453 29,173 69,280 102,853 JHEA 53,426 JHEA 89,673 [HEA 139,099 [HEA 36,246 10/12/20188:10 AMV1-2019-BradleyBudget-DRAF TAmend2-092418.xIsxSch B Page 6 of 17 Fy17 FY18 FY19 FY19 FY17 FY18 FY19 Increase Amended {Over)Under Approved Actual @ {Over}Under Approved OLD NEW FY19 =DRAFT (Decrease) Budget Actual Budget to date Budget 11/30/17 |Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original FERC 538 -Electric Expenses Electric Expenses Bradley Lake Operating Labor &Benefits 242,940 193,058 49,882 232,294 85,570 146,724 240,998 120,499 98,667 219,166 (21,832) IDCR 155%.-------116,612 116,612 116,612 Travel 7,000 8,638 (1,638)7,000 2,930 4,070 7,000 7,000 7,000 7,000 - Training 25,000 23,737 1,263 25,000 -25,000 25,000 25,000 25,000 25,000 - Contractual 2,000 1,400 600 2,000 1,400 600 2,000 2,000 2,000 2,000 - Supplies &Materials 8,500 4,672 3,828 9,732 -9,732 9,732 9,732 9,732 9,732 - Bradley Lake Operating Total 285,440 231,505 §3,934 276,026 89.900 186.126 284,730 164,231 259,011 379,510 94,780 FERC 538 -Electric Expenses Total 285,440 231,505 53,934 276,026 89,900 186,126 284,730 [HEA 164,231 FHEA 259,011 FHEA 379,510 JHEA 94,780 FERC $39 -Misc.Hydraulic Power Generation Expenses Misc Hydro Power Exp Bradley Lake Operating Labor &Benefits 178,991 137,740 41,251 179,530 66,934 112,596 216,960 108,478 56,613 165,091 (51,869) IDCR 155%--------49,338 49,338 49,338 Training 15,000 829 14,171 15,000 6,219 8,781 15,000 15,000 15,000 45,000 - Contractual 297,048 214,899 82,149 287,525 68,505 219,020 287,525 287,525 287,525 287,525 - Supplies &Materials 17,900 19,695 (1,795)17,900 5,466 12,434 17,900 17,900 17,900 17,900 - Bradley Lake Operating Total 508,939 373.163 135,777 499,955 147,124 352,831 537,385 JHEA 428,903 [HEA 426,376 JHEA 534,854 [HEA (2,531) BRADLEY CIRCUITS/RADIO TO BERNICE LK Other Costs 35,695 35,696 (1)35,695 14,873 20,822 35,695 35,695 35,695 35,695 - BRADLEY CIRCUITS/RADIO TO BERNICE LK Total 35.695 35.696 (1)35,695 14,873 20,822 35,695 [HEA 35,695 JHEA 35,695 JHEA 35,695 |HEA - BRADLEY CIRCUITS BERNICE LK TO ANCH Other Costs 29,773 29,540 233 29,773 12,334 17,439 29,773 29,773 29,773 29,773 - BRADLEY CIRCUITS BERNICE LK TO ANCH Total 29,773 29,540 233 29,773 12,334 17,439 29,773 JCEA 29,773 JCEA 29,773 JCEA 29,773 {CEA - FERC 539 -Mise.Hydraulic Power Generation Expenses Total 574,407 438,398 136,009 $65,423 174,332 391,091 602,853 494,371 491,844 600,322 {2,531} FERC 540 -Rents FERC Land Use Fee Bradley Lake Operating Other Costs 312,176 230,614 81,562 318,000 -318,000 ----- Bradley Lake Operating Total 312,176 230,614 81,562 318,000 -318.000 ----- FERC 540 -Rents Total 312,176 230,614 81,562 318,000 -318,000 -AeA -AEA -AEA - |AEA - 10/12/20188:10 AMV1-2019-BradleyBudget-DRAF TAmend2-092418.xIsxSch B Page 7 of 17 FY17 FY18 FY19 Fyi9 FY17 FY18 FY19 Increase Amended (Over)Under Approved Actual @ (Over)Under Approved OLD NEW FY19.-DRAFT|{Decrease} Budget Actual Budget to date Budget 11/30/17 |Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original FERC 541 -Maintenance Supervision &Engineering Maint Supervision/Eng Bradley Lake Operating Labor &Benefits 224,284 229,602 (5,318)272,586 114.811 157,775 277,696 138,849 56,968 495,817 {81,879} tDCR 155%:-ba ----fa 77,849 77,849 77,849 Bradley Lake Operating Total 224,284 229,602 (5,318)272,586 114.811 187,775 277 696 138,849 134,817 273,666 (4,030) FERC 541 -Maintenance Supervision &Engineering Total 224,284 229,602 (5,318)272,586 114,811 157,775 277,696 JHEA 138,849 FHEA 134,817 [HEA 273,666 [HEA {4,030)| FERC 542 -Maintenance of Structures Maintenance of Structures Bradiey Lake Operating Labor &Benefits 92,746 65,629 27,117 94,453 28,848 65,605 98,853 49,426 33,058 82,484 (16,369) IDCR 155%------:-44,888 44,888 44.888 Contractual 10,000 -40,000 10,000 -10,000 10,000 10,000 10,000 10,000 - Supplies &Materials 53,713 42,233 11,480 §3,713 26,696 27,017 §3,713 §3,713 §3,713 §3,713 - Equipment,Furniture and Machinery 11,500 8,318 3,182 7,000 3,091 3,909 7,000 7,000 7,000 7,000 - Maintenance Projects -:---.----- Bradley Lake Operating Total 167,959 116.180 $1,779 165,166 §8,635 106,531 169,566 120,139 448,660 198,086 28.520 BRADLEY UPGRADE CREWS QUARTERS/RESIDENCE KITCHEN Contractual -:::::165,000 165,000 165,000 165,000 - BRADLEY UPGRADE CREWS QUARTERS/RESIDENCE KITCHEN Total °-----165,000 165,000 165,000 165,000 - FERC 542 -Maintenance of Structures Total 167,959 116,180 $1,779 165,166 58,635 106,531 334,566 JHEA 285,139 JHEA 313,660 JHEA 363,086 [HEA 28,520 FERC 543 -Maintenance of Reservoirs,Dams &Waterways Maint Res,Dams,WWays Bradley Lake Operating Labor &Benefits 50,409 50,035 374 50,610 1,471 49,139 53,091 26,545 17,349 43,894 (9,197) IDCR 155%-:ba :----24,138 24,138 24,138 Contractual 5,200 63,704 (58,504)6,500 -6,500 6,500 6,500 6,500 6,500 - Bradley Lake Operating Total 55,609 113,739 (58,130)§7,110 1,471 §5,639 59,591 33,045 47,987 74,532 14,941 BRADLEY NUKA REPAIR Contractual 15,000 980 14,020 15,000 -15,000 15,000 16,000 15,000 16,000 - Equipment,Furniture and Machinery :---------- BRADLEY NUKA REPAIR Total 15,000 980 14.020 15.000 -15,000 15,000 16,000 15,000 15,000 - BRADLEY POWER TUNNEL MAINT (Dam) Contractual 15,000 9,431 5,569 15,000 -15,000 15,000 15,000 15,000 15,000 - BRADLEY POWER TUNNEL MAINT (Dam)Total 15,000 9.431 5,569 15,000 >15,000 15,000 45,000 15,000 45,000 - BRADLEY POWER TUNNEL DRAIN CLN/INSP (P/House) Maintenance Projects bd :::------- BRADLEY POWER TUNNEL DRAIN CLN/INSP (P/House)Total :---------- FERC 543 -Maintenance of Reservoirs,Dams &Waterways Total 85,609 124,151 {38,542}87,110 1,471 85,639 89,591 [HEA 63,045 [HEA 77,987 [HEA 104,532 JHEA 14,941 10/12/20188:10 AMV1-2019-BradleyBudget-DRAFTAmend2-092418.xisxSch B Page&of 17 10/12/20188:10 AMV1-2019-BradleyBudget-DRAF TAmend2-092418.xIsxSch B FY17 FY18 Fy19 FY19 FY17 FY18 FY19 Increase Amended (Over)Under Approved Actual @ (Over)Under Approved OLD NEW FY19.DRAFT!(Decrease) Budget Actual Budget to date Budget 11/30/17 |Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original FERC 544 -Maintenance of Electric Plant Maintenance of Elec Plant Bradley Lake Operating Labor &Benefits 370,983 266,161 104,822 379,102 116,720 262,382 397,141 198,568 131,619 330,187 (66,954) IDCR 155%----:---180,189 180,189 180,189 Travel 4,500 740 3,760 4,500 -4,500 4,500 4,500 4,500 4,500 - Contractual 79,000 36,844 42,156 70,000 19,363 §0,637 70,000 70,000 70,000 70,000 - Supplies &Materials 27,245 13,081 14,164 20,000 1,476 18,524 20,000 20,000 20,000 20,000 - Maintenance Projects ----------- Bradley Lake Operating Total 481,728 316,826 164,902 473,602 137,559 336,043 491,641 293,068 406,308 604,876 113,235 BRADLEY HIGH BAY LIGHTS Supplies &Materials ----:-30,000 30,000 30,000 30,000 - BRADLEY HIGH BAY LIGHTS Total ---:--30,000 30,000 30,000 30,000 - FERC 544 -Maintenance of Electric Plant Total 481,728 316,826 164,902 473,602 137,559 336,043 $21,641 JHEA 323,068 JHEA 436,308 [HEA 634,876 [HEA 113,235 FERC 545 -Mai 1ce of Misc.Hydraulic Plant Maint of Misc Hydr Plant Bradley Lake Operating Labor &Benefits 92,746 66,129 26,617 94,453 29,149 65,304 98,853 49,426 33,058 82,484 (16,369) IDCR 155%:--°---:44,888 44,888 44,888 Contractual 3,900 §,274 (1,374)3,900 -3,900 3,900 3,900 3,900 3,900 - Supplies &Materials 43,000 20,631 22,369 35,000 41,000 (6,000)35,000 35,000 35,000 35,000 * Bradiey Lake Operating Total 139,646 92.034 47,612 133,353 70,149 63,204 137,753 88,326 116,847 166,273 28,520 BRADLEY FISH WATER DSGN/MIDDLE FORK SHACK IMPR Contractual 20,000 -20,000 -1,345 (1,345)----- BRADLEY FISH WATER DSGN/MIDDLE FORK SHACK IMPR Total 20,000 -20.000 -1,345 (1,345)----- FERC 545 -Maintenance of Misc.Hydraulic Plant Total 159,646 92,034 67,612 133,353 71,494 61,859 137,753 JHEA 88,326 [HEA 116,847 JHEA 166,273 [HEA 28,520 FERC 556 -System Control &Load Dispatching System Cntl &Load Disp Bradley Lake Operating Labor &Benefits 49,502 27,294 22,207 20,618 7,176 13,442 21,506 10,763 10,753 21,506 - {DCR 155%---°--::--- Contractual 60,500 66,135 (5,635)53,000 §,437 47 563 §3,000 §3,000 53,000 53,000 - Supplies &Materials 6,000 2,229 3,771 6,000 -6,000 6,000 6,000 6,000 6,000 - Bradley Lake Operating Total 116,002 95,657 20,344 79,618 12,613 67,005 80,506 JHEA 69,753 {HEA 69,753 JHEA 80,506 {HEA - BRADLEY EMERSON ANTIVIRUS UPGRADE Contractual -::.--40,000 40,000 40,000 40,000 - BRADLEY EMERSON ANTIVIRUS UPGRADE Total :-----40,000 FHEA 40,000 JHEA 40,000 JHEA 40,000 [HEA - BRADLEY POWERHOUSE PC'S Contractual :---::--:-- BRADLEY POWERHOUSE PC'S Total °---::-_JHEA -_JHEA -_JHEA +JHEA - Page9of17 FYi7 Fy18 Fy19 FY19 FY17 FY18 FY19 Increase Amended {Over}Under Approved Actual @ (Over}Under Approved OLD NEW FY19 DRAFT (Decrease) Budget Actual Budget to date Budget 11/30/17 |Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original Snow Measurement Bradley Lake Operating Contractual 10,000 10,000 -10,000 10,000 -42,000 [AEA 12,000 [AEA 12,000 [AEA 12,000 [AEA - Bradley Lake Operating Total 10,000 10,000 -10,000 10,000 -12,000 12,000 12,000 12,000 - Seismic Service Bradley Lake Operating Contractual 60,370 61,358 (988)62,000 16,778 45,222 62,000 JAEA 62,000 JAEA 62,000 [AEA 62,000 [AEA - Bradley Lake Operating Total 60,370 61,358 {988)62,000 16,778 45,222 62,000 62,000 62,000 62,000 - Streamguaging Serv Bradley Lake Operating Contractual 310,000 157,164 152,836 213,137 §3,284 159,853 206,291 [AEA 206,291 [AEA 206,291 JAEA 206,291 JAEA - Bradiey Lake Operating Total 310,000 157,164 152,836 213,137 §3.284 159,853 206,291 206,291 206,291 206,291 - Permits Bradley Lake Operating Other Costs 100 450 (350)350 -350 350 [AEA 350 [AEA 350 [AEA 350 [AEA - Bradley Lake Operating Total 100 450 (350)360 -350 350 350 350 350 - FERC 556 -System Control &Load Dispatching Total 496,472 324,629 171,842 365,105 92,675 272,430 401,147 390,394 390,394 401,147 - FERC 562 -Station Expenses Station Expenses SVC/Substation Maintenance Contract Labor &Benefits 130.414 151,868 (21,455)123,726 64,731 §8,995 65,675 [CEA 65,675 JCEA -CEA 65,675 [CEA - Labor &Benefits ----29,043 JHEA 14,522 [HEA 14,522 [HEA 29,043 [HEA - Travel 6,000 -6,000 6,000 1,701 4,299 2,000 ICEA 2,000 ICEA 2,000 JCEA 2,000 JCEA - Contractual 4,000 3,447 554 4,000 -4,000 2,000 [CEA 2,000 JCEA 2,000 JCEA 2,000 [CEA - Contractual ------30,000 [HEA 30,000 [HEA 30,000 JHEA 30,000 JHEA - Supplies &Materials 16,000 3,848 12,152 16,000 1,773 14,227 11,000 [CEA 11,000 [CEA 11,000 [CEA 11,000 ICEA - Supplies &Materials :-:---10,000 JHEA 10,000 {HEA 10,000 [HEA 10,000 [HEA - Other Costs 4,000 1,148 2.852 4,000 6,202 (2,202)4,000 [CEA 4,000 [CEA 4,000 [CEA 4,000 [CEA - Maintenance Projects --::795 (795)-CEA -CEA -CEA -CEA - SVC/Substation Maintenance Contract Total 160.414 160.311 103 153,726 78.202 78.524 153,718 139,197 73,522 153,718 - FERC 562 -Station Expenses Total 160,414 160,311 103 153,726 75,202 78,524 153,718 139,197 73,522 153,718 - 10/12/20188:10 AMV1-2019-BradleyBudget-DRAF TAmend2-092418.xisxSch B Page 10 of 17 10/12/20188:10 AMV1-2019-BradleyBudget-DRAF TAmend2-092418.xIsxSch B FY17 FY18 FY19 FY19 FY17 FY18 FY19 increase Amended {Over)Under Approved Actual @ (Over)Under Approved OLD NEW FY19 DRAFT|(Decrease) Budget Actual Budget to date Budget 11/30/17 |Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original FERC 571 -Maintenance of Overhead Lines Maint of OH Lines Bradley Lake Operating Labor &Benefits 179.671 7,014 172,657 82,402 -82,402 31,120 15,560 15,560 31,120 - Travel 95,000 8,179 86,821 49,000 -49,000 10,000 10,000 10,000 10,000 - Contractual 50,000 -50,000 86,000 -86,000 50,000 50,000 §0,000 §0,000 - Supplies &Materials §0,000 95 49,905 19,000 -19,000 5,000 5,000 §,000 §,000 - Other Costs -584 (584)-------- Bradley Lake Operating Total 374.671 15,872 358.799 236,402 -236,402 96,120 80,560 80.560 96,120 - BRADLEY JUNCTION SWITCH REMOVAL Travel 5,000 -§.000 -------- Contractual 70,000 73,076 (3,076)-------- Other Costs -------*--- BRADLEY JUNCTION SWITCH REMOVAL Total 75,000 73,076 1,924 :------- MARKER BALL REPLACEMENT Labor &Benefits -6,352 {6,352)-------- Travel §,000 -5,000 -------- Contractual 200,000 140,526 59,474 -83 {83)----- Equipment,Furniture and Machinery -1,235 (1,235)-------- MARKER BALL REPLACEMENT Total 205,000 148,113 56,887 -83 (83)----- FERC 571 -Maintenance of Overhead Lines Total 654,671 237,061 417,610 236,402 83 236,319 96,120 [HEA 80,560 JHEA 80,560 [HEA 96,120 [HEA - FERC 920 &930 -Administrative Expense AEA Bradley Fixed Admin Fees Bradley Lake Operating Administrative Costs 200,000 200,000 -200,000 83,333 116,667 200,000 JAEA 200,000 [AEA 200,000 JAEA 200,000 JAEA - Bradley Lake Operating Total 200,000 200,000 -200,000 83,333 116,667 200,000 200,000 200,000 200,000 - Operating Committee Exp-Audit Bradley Lake Operating Administrative Costs 16,494 16,500 (6)16,800 -16,800 16,500 [AEA 16,500 [AEA 16,500 [AEA 16,500 JAEA : Bradley Lake Operating Total 16.494 16,500 {6)16,800 -16,800 16,500 16,500 16,500 46,500 - Operating Committee Exp-Legal Bradley Lake Operating Administrative Costs 25,000 57,444 (32,444)25,000 40,499 (15,499)25,000 [AEA 25,000 [AEA 25,000 [AEA 25,000 JAEA - Bradley Lake Operating Total 25,000 57,444 (32,444)25.000 40,499 (15,499)25.000 25,000 25,000 25,000 - Page 11 of 17 FY17 FY18 Fy19 Fy19 FY17 FY18 FY19 Increase Amended (Over)Under Approved Actual @ {Over)Under Approved OLD NEW FY19.DRAFT](Decrease) Budget Actual Budget to date Budget 11/30/17 |Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original Operat Committee Exp-Arbitrage Bradley Lake Operating Administrative Costs 3,630 3,630 -3,380 -3,380 2,935 FAEA 2,935 [AEA 2,935 JAEA 2,935 JAEA - Bradley Lake Operating Total 3.630 3.630 -3,380 -3.380 2.935 2,935 2.935 2.935 - Trust &Account Fees Bradley Lake Operating Administrative Costs 12,000 11,918 82 11,918 5,959 §,959 11,918 JAEA 11,918 JAEA 11,918 JAEA 11,918 JAEA - Bradley Lake Operating Total 42,000 11,918 82 11,918 5,959 §.959 11,918 11,918 11,918 114,918 - Mise Admin Bradley Lake Operating Administrative Costs -10,000 (10,000)40,000 -10,000 10,350 JAEA 10,350 JAEA 10,350 JAEA 10,350 JAEA - Bradiey Lake Operating Total -10.000 (10,000)10,000 -10.000 10,350 10,350 10,350 10,350 - FERC 920 &930 -Administrative Expense Total 257,124 299,492 (42,368)267,098 129,791 137,307 266,703 266,703 266,703 266,703 - FERC 924 &925 -Insurance Premiums Insurance Premiums Bradley Lake Operating Administrative Costs 500,000 §02.391 (2,391)525,000 236,957 288,043 600,834 [AEA 600,834 JAEA 600,834 [AEA 600,834 [AEA - Administrative Costs 64,637 §2,279 12,358 56,000 20,718 35,282 56,000 [HEA 56,000 JHEA 56,000 [HEA 56,000 [HEA - Bradley Lake Operating Total 564.637 §54.670 9.967 581,000 257.675 323,325 656,834 656.834 656,834 656,834 - Risk Management Bradley Lake Operating Administrative Costs :-:----_JCEA -_|CEA - JCEA - $CEA - Bradley Lake Operating Total -------.--- FERC 924 &925 -Insurance Premiums Total 564,637 554,670 9,967 581,000 257,675 323,325 656,834 656,834 656,834 656,834 - FERC 928 -Regul:y Ce ission Exp FERC Admin Fees Administrative Costs 180,000 122,210 57,791 185,000 -185,000 185,000 JAEA 185,000 [AEA 185,000 JAEA 185,000 JAEA - Bradley Lake Operating Total 180.000 122,210 57,791 185,000 -185.000 485.000 185,000 185,000 185,000 - FERC Related Prof Services FERC Part 12 Inspection Administrative Costs 25,000 24,113 887 ---- JAEA -_JAEA - JAEA - JAEA - Contractual Engineer-FERC license issues Administrative Costs 100,000 144,264 (44,264)125,000 30,936 94,064 125,000 JAEA 125,000 JAEA 425,000 JAEA 125,000 JAEA . Bradley Lake Operating Tota!125.000 168,377 (43.377)125,000 30,936 94.064 425.000 425,000 125.000 125,000 - FERC 928 -Regulatory Commission Expenses Total 305,000 290,586 14,414 310,000 30,936 279,064 310,000 310,000 310,000 310,000 > Total Bradley Lake Budget 5,154,110 4,011,785 1,142,326 4,593,387 1,380,513 3,212,874 4,531,908 3,614,369 3,854,355 4,837,557 305,649 10/12/20188:10 AMV1-2019-BradleyBudget-DRAF TAmend2-092418.xlsxSch B Page 12 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Monthly Utility Contributions Schedule C Power Purchaser Chugach Electric Municipality of Anchorage Homer Electric Matanuska Electric Golden Valley Electric City of Seward Rounding Power Purchaser Chugach Electric Municipality of Anchorage Homer Electric Matanuska Electric Golden Valley Electric City of Seward proposed changes made by Amend 2 highlighted FY2017 FY2018 FY2019 FY2019 FY2019 FY2019 Change between Percent Amended Amended Original Amended 7/20/18 Proposed Proposed FY2018 to Share Budget Budget Budget Budget Change Amendment 2 amended FY2019 30.4%5,941,176 6,025,086 §,623,032 5,690,052 106,428 5,796,480 (228,606) 25.9%§,061,732 5,133,216 4,790,676 4,847,784 90,648 4,938,432 (194,784) 12.0%2,345,208 2,378,322 2,219,616 2,246,076 42,000 2,288,076 (90,246) 13.8%2,696,988 2,735,076 2,552,556 2,582,988 48,300 2,631,288 (103,788) 16.9%3,302,832 3,349,470 3,125,964 3,163,224 59,160 3,222,384 (127,086) 1.0%195,432 198,192 184,968 187,176 3,492 190,668 (7,524) 3 (2)1 (3)(2) 100.0%19,543,371 19,819,362 18,496,810 18,717,301 350,025 19,067,326 (752,034) FY2018 FY2019 FY2019 Percent FY2017 Monthly FY2019 FY2019 Amend 2 Proposed Amend 2 Share Monthly Accelerated Monthly Monthly Change Monthly 30.4%495,098 1,004,181 468,586 474,171 8,869 483,040 (521,141) 25.9%421,811 855,536 399,223 403,982 7,554 411,536 (444,000) 12.0%195,434 396,387 184,968 187,173 3,500 190,673 (205,714) 13.8%224,749 455,846 212,713 215,249 4,025 219,274 (236,572) 16.9%275,236 558,245 260,497 263,602 4,930 268,532 (289,713) 1.0%16,286 33,032 15,414 15,598 291 15,889 (17,143) 100.0%1,628,614 3,303,227 1,541,401 1,559,775 29,169 1,588,944 (1,714,283) 10/12/20188:10 AMV1-2019-BradleyBudget-DRAFTAmend2-092418.xlsxSch C Page 13 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT R&C Fund Oi and Schedule 0 Actual 'Actual 'Actual PROJECTED PROJECTED PROJECTED |PROJECTEDPROJECTEDTOREPAYTOREPAYTOREPAYTOREPAYDe:Disburse at 08/3018 Disburse at 06/30/17 Oisburse at 06/30/18 Disburse at 06/30/19 R&C FUND PROJECTS [Governor 0,00 4,052,070.14 0.00 4,052,070.14 0.00 4,052.070.14 0.00 4,052,070.14 {Replace RFLS 0.00 251,092.69 0.00 251,092.69 0,00 251,092.69 0.00 251,092.69 Reptace Runners 0.00 1,946,732.79 0,00 1,946,732.79 0.00 1,946.732.79 0.00 1,946,732.79 Replace cable from dam to power house 0.00 2.321.922.94 9.00 2,321,922.94 0.00 2,321.922.94 0.00 2.321.922.94 Replace power system stabéizer 0.00 619,205.10 0.00 619,205.10 0.00 619,205.10 0.00 619,205.10 Replace two RTUs 9.00 86,905.27 9.00 86,905.27 0.00 86,905.27 0.00 86,905.27 Culvert Repairs.0.00 675.966.79 0.00 675,966.79 0,00 675.966.79 0.00 675,966.79 [Trans Towers Frost Jactong Repairs 0.00 887,596.62 0.00 887,596.62 0.00 887,596.62 0,00 887,596.62 Replace Ptant and SCADA Controls 0.00 1,344,683.05 0.00 1,344,683.05 0.00 1,344,683.05 0.00 1,344,683.05 Vibration Monitoring System 0,00 490.00 0.00 490,00 0.00 490.00 0.00 490.00 Battle Creek Feasiburty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Fire Alarm System Replacement 0.00 0.00 0.00 0.00 100,000.00 100,000.00 250,000.00 350,000.00 Battle Creek Diversion 149,683.91 1,144,017.74 25,982.26 1,470,000.00 0.00 1,170,000.00 0.00 1,170,000.00 Reptace Electro-Mechanical Relays 0.00 1,277,197.06 0.00 1,.277,197.06 0.00 1,277,197.06 0.00 1,277,197.06FishwaterScreenDebrisRemoval290,306.98 312,236.43 0.00 312,236.43 0.00 312,236.43 0.00 312,236.43 [Turbine Nozzie Repair 1,320,234.57 1,416,658.06 12,203.01 1.428,861.07 0.00 1,428,861.07 0.00 1,428,861.07 Spitway Raise 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0,00 SVC Oaves Creek|1,570,577.34 1,570,577.34 |5,606,007.81 7,176,585.15 f 1,391,899.49 8,568,484.64 0.00 8,568.484.64 Equipment Storage Shed 0.00 0.00 0.00 0.00 0.00 0.00 500,000.00 $00,000.00 Emerson Operating System Upgrade 0,00 0.00 0.00 0,00 0.00 0.00 700,000,00 700,000.00 3,330,802.80 17 907,352.02 5.644 193.08 23,551,545.10 1,491 899.49 25.043.444.59 1,450.000,00 26.493.44459 Currert Year R&C Repayment (3,461,591.16){3,262,788,00}(2,793,306.63){2,746,067.65)} Adjust bal to $5 mill (won't be corrected until year end)0.00 0.00 0.00 0.00 Less Interest in Fund Applied to Repayment (287 .080.93))(361,780.54)9.00 0,00 Net Transfer from Revenue Fund 3,748,672.09))(3,624 568.54 2.793,306.63;(2,746.067.65 Cumulative Prior Years R&C Repayments (12,716,539.31 (15,409,249.92)}(17,886,155.08 (20,527,878.92! Due back to Utities 1,055,961.48 1,147,663.37 151,582.78 0,00 R&C Cumulative interest (Retained)Applied As Part of Repayment 00 0.00.0.00 INet R&C R 11,77.82)14,261.586.54)|17,734,572.(20.527,878.92:INET DUE TO R&C FUND 2,498 102.10 5.665.390.02 4.515 565.67 3.219.498.02 R&C FUND CASH FLOW PROJECTION ;Begineung Investment Balance 3,212,607.32 5,623,509.49 3,219,624.39 786,511.13 Drabursements-current year (1,265,152.32){2,906,842.05)(1,341,405.49}|(4,350,000.00) Disbursements-prior year accrued (22,899.86)|(2,065,650,48}{2.737,351.03)(100,000.00) R&C Repayment to utiities (20,211.52 {1,055,961.11}(1,447 ,663.37'(202,076.79Netothercashinflowoutfiow)(29,506.22)0.00 0.00 0.00 Current year interest eamings 287,080.93 361,780.54 0.00 0.00 Current year Participants Contributions to R&C 3.461,591.16 3.262,788.00 2.793,306.63 2.746.067.65 Ending investment Balance 5.623.509.49 3.219.624.39 786.511.43 1,880.501.98 Accrued R&C Payable at year end-Due to Utilities (1,088,961.41)(1,147,663,37)|(202,076.79)]0.00 Accrued R&C vendor Payable at year end '2.065,650,48'2,737,351.03 100,000.00) PROJECTED NET DUE +ENDING INVESTMENT BALANCE §.000.000.00 5.009.000.00 §,000.000.00 total repaid Temaining to IREPAYMENT AMOUNT at 6/30/19 Pay at 71/19 Fy19 FY20 Fy21 $1,401.948.53 X 25%al 4 years ith yr 350,487.13 1,401,948.53 - I$.1,834.499.92 X 25%yr 1]25%yr 2 |50%yr 3 final yr 917,249.96 1,634.499.92 ° 1$789,697.09 X 25%yr 1 |75%yr 2 inal yt 592,272.82 789,697.09 ° {$3,330,802.80 X 25%yr 1 |32%yr 2 (25%yr 3]1B 1st yr 832,700.70 F2nd yr 1,065,856.90 [3rd yr 832,700.70 [4th yr 599.544,50 3,330,802.80 - 1$5,644,193,08 x 25%all 4 years.4st yr 1,411,048.27 [2nd yr 1,411,048.27 [3rdyr 1,441,048.27 4,233,144.81 {1,411,048,.27)-1.419,048.271$1.491 899.49 x 25%all 4 years 'Ast yr 372,974.87 J2nd yr 372,974.87 745,949.75 (745,949.75)372,974.87 372,974.87 $1,350,000 x 25%all 4 years 4st yr 362,500.00 362,500.00 {1,087,500.00)362,500.00 362,500.00 362,500.00 2692.770.61 |2.476.905.17 |2616.723.84 |2.746 067.65 (G.244 498.02)2.446523.14 735,474.87 362,500.00 "FY 18 projects reflect budgeted and actual numbers for different projects depending on which ig higher (budgeted or actual},so the R&C repayment amount reflects a conservative amount 10/12/20188:10 AMV1-2019-BradleyBudget-DRAF TAmend2-09241 8.xdsx Sch D Page 14 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Battle Creek Capital Construction Purchases Schedule E FY17 FY18 FY18 FY19 Original Amended Approved Capital Construction Project Description Actuals Budget Budget 03/05/18 Budget Comments Battle Creek Diversion "798,072 |400,000 Total Construction 798,072 400,000 -- Used 2007 Chevrolet Silverado -8,800 Used 2006 Chevrolet Silverado -7,700 Total capital revenue fund purchases -16,500 - 10/12/20188:10 AMV1-2019-BradleyBudget-DRAFT Amend2-092418.xlsxSch E Page 15 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Battle Creek Administrative Costs Budget Schedule F HEA -HEA 262,438 CEA -CEA - AEA 43,000 AEA 191,550 FY18 |F¥19 FY18 (Over)Increase Amended Under FY19 Amend (Decrease} Budget Actual Budget 1 Budget from PY Summary by cost type - Administrative Costs 43,000 -43,000 453,988 410,988 43,000 -43,000 453,988 410,988 FERC 920,923,&930 -Administrative Expense Battle Creek Admin Fees Administrative Costs ---8,193 JHEA 8,193 Administrative Costs 22,000 -22,000 168,000 FAEA 446,000 Battle Creek Admin Fees Total 22,000 -22,000 176,193 154,193 Operating Committee Exp-Owners Representative Administrative Costs ---254,245 [HEA 254,245 Operating Committee Exp-Owners Representative Total ---254,245 254,245 Operating Committee Exp-Other Administrative Costs 500 -500 -AEA (500) Operating Committee Exp-Other Total 500 -500 -(500) Operating Committee Exp-Legal Administrative Costs 15,000 -45,000 15,000 JAEA - Operating Committee Exp-Legal Total 15,000 -15,000 45,000 - Operat Committee Exp-Arbitrage Administrative Costs 2,000 -2,000 2,000 JAEA * Operat Committee Exp-Arbitrage Total 2,000 -2,000 2,000 - Trust &Account Fees Administrative Costs 3,500 -3,500 6,550 JAEA 3,050 Trust &Account Fees Total 3,500 -3,500 6,550 3.050 FERC 920,923,&930 -Administrative Expense Total 43,000 -43,000 453,988 410,988 Totai Bradley Lake Budget 43,000 -43,000 453,988 410,988 10/12/20188:10 AMV1-2019-BradleyBudget-DRAF TAmend2-092418.xsxSch F Page 16 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Battle Creek Monthly Participating Purchaser Contributions Schedule G POWER PURCHASER Chugach Electric Association Municipal Light &Power Homer Electric Association Matanuska Electric Association Golden Valley Electric Association City of Seward Rounding POWER PURCHASER Chugach Electric Association Municipal Light &Power Homer Electric Association Matanuska Electric Association Golden Valley Electric Association City of Seward *(1)The calculation the FY2018 2/2/2018 Amended Budget is shown below. FY2018 FY2018 FY2018 a -FY2017 7128/2017 2/2/2018 3/5/2018 FY2019 Percent Amended Amended Amended Amend 3 Approved Share Budget Budget Budget *(1)Budget Budget 39.38%315,040 157,520 236,521 301,379 899,660 0.00%----- 41.44%331,520 165,760 116,938 185,189 946,721 17.88%143,040 71,520 107,389 136,837 408,479 0.00%----- 1.30%10,400 5,200 7,808 9,949 29,699 1 4 1 100.00%800,000 400,000 468,657 633,356 2,284,560 FY2018 FY2018 Percent March April -June FY2019 Share Monthly Monthly Monthly 39.38%--59,130 80,749 74,972 0.00%---.- 41.44%--29,235 51,985 78,893 17.88%-°26,847 36,663 34,040 0.00%----- 1.30%--1,952 2,666 2,475 100.0%--117,164 172,064 190,380 Fr Original Correcte Contributions FY2018 i Capital Capital Other Prior to 2/2/2018 :Reserve Reserve Available Other Amended |Contributions ,ContributionsJ Funds Available Funds Budget 1,246,143 1,101,213 144,930 381,451 236,521 1,443,286 1,158,819 284,467 401,405 116,938 565,796 499,992 65,804 173,193 107,389 41,137 36,353 4,784 12,592 7,808 (1)1 3,296,363 2,796,378 499,985 968,640 468,657 10/12/20188:10 AMV1-2019-BradleyBudget-DRAF TAmend2-092418.xIsxSch G Page 17 of 17 Ait Version 2:Excludes trainee ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT 2019 DRAFT BUDGET -AMEND 2 DATE:10/19/18 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT 2019 Budget Contents Schedule Description Page # Overview of Budget Changes between FY19 Amendment 1 Budget and FY19 Amendment 2 Budget 3-4 Schedule A Budget Summary 5 Schedule A-1 Capital Purchases not funded by R&C 6 Schedule B Operations &Maintenance Budget 7-13 Schedule C Monthly Utility Contributions 14 Schedule D R&C Fund Disbursements and Repayments 15 Schedule E Battle Creek Capital Purchases 16 Schedule F Battle Creek Administrative Costs 17 Schedule G Battle Creek Monthly Utility Contributions 18 10/12/20188:15 AMH:\Accounting\AEA FY 19 FS Shared Files\Bradley Lake\Budget\V2-2019-BradleyBudget-DRAF TAmend2-101118.xisx 2 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Overview of Budget Changes between FY19 Amendment 1 Budget and FY19 Amendment 2 Budget FY19 Amend 1 Budgeted Utility Contributions 18,717,301 From Schedule A REVENUES 1)Increase in interest income (16,754) (16,754) EXPENSES 2)Increase in Operations &Maintenance 165,006 3)Increase in Transfer To(From)Operating Reserve 33,001 198,007 Net change in utility contributions 481,253 FY19 Proposed Amendment 2 Budgeted Utility Contributions 18,898,554 Notes: 1)Increase in interest income Utility contributions increase and more current cash flow projections are available to use to estimate interest income 2)Increase in Operations &Maintenance Schedule B updated to reflect new O&M contract with HEA 3)Increase in Transfer to(from)Operating Reserve - operating reserve is required to be 20%of budgeted operating expense 10/12/20188:15 AMV2-2019-BradleyBudget-DRAF TAmend2-101 118.xisxOverview Page 3 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Budget Summary Schedule A proposed changes made by Amend 2 highlighted FY2018 FY2019 ™FY2019 FY2019 FY2019 Inc(Dec)From FY2016 FY2017 03/05/18 Amended Original Amend 1 Amend 1 Amend 2 PY Amended Bradley Lake (excluding Battle Creek shown below)Actuals Actuals Budget Budget Budget Change DRAFT budget Budget Revenues,Expenses &Changes in surplus Revenues Utility Contributions (sch C)17,828,513 17,172,295 19,819,362 18,496,810 18,717,301 181,253 18,898,554 (920.808) Interest Income 1,930,547 1,991,555 1,845,000 1,855,000 1,895,000 16,754 1,911,754 66,754 19,759,060 19,163,850 21,664,362 20,351,810 20,612,301 198,008 20,810,308 (854,054) Expenses Operations &Maintenance (sch B)4,273,634 4,011,783 4,593,387 4,491,916 4,531,908 165,006 4,696,914 103,527 Renewals/Replacements (R&C Fund Repayments)(sch D)2,692,710 2,476,905 2,793,307 2,746,068 2,746,068 ts)2,746,068 (47,239) Non R&C Capital Purchases (sch A-1)26,444 89 1,307,000 60,000 272,500 0 272,500 (1,034,500) Transfer To(From)Operating Reserve (9,747)(85,531)(112,145)(20,294)(12,296)33,001 20,705 132,850 Debt Service (net of Capital Reserve Reductions)12,494,600 12,426,200 12,778,100 12,778,588 12,778,588 0 12,778,588 488 Arbitrage Transfer 281,419 334,404 304,713 295,533 295,533 0 295,533 (9.180) 19,759,060 19,163,850 21,664,362 20,351,810 20,612,301 198,007 20,810,308 |(854,054) Surplus (Deficit)0 0 0 0 0 0 0 Other Project Costs -Battle Creek Revenues,Expenses &Changes in surplus Revenues -Battle Creek Utility Contributions (sch G)0 800,000 400,000 0.0 0 0 (400,000) Utility Contributions (sch G)0 0 633,356 2,541,824 2,284,560 0 2,284,560 1,651,204 Capital Reserve Contributions 0 0 2,796,378 0 0 0 0 (2,796,378) Other Available Funds 0 i)499,985 i]0 0 is)(499.985) 0 800,000 4,329,719 2,541,824 2,284,560 i)2,284,560 (2,045,159) Expenses -Battle Creek Battle Creek Administrative costs (sch F)0 43,800 199,743 453,988 0 453,988 410,188 Capital Purchases (sch E)0 800,000 400,000 O°0 0 0 (400,000) Capital Purchases -Revenue Fund (sch E)0 i?)16,500 0 0 i¢)(e)(16,500) Transfer To(From)Operating Reserve 0 0 8,760 31,349 82,038 oO 82,038 73,278 Debt Service 0 0 903,064 1,880,894 1,748,534 (9)1,748,534 845,470 IRS Subsidy 0 (*]0 O°(°)(°)0 0 Cost of Issuance 9th Series 0 0 21,217 0 0 0 0 (21,217) Capital Reserve Contribution 0 0 2,936,378 429,838 0 0 0 (2,936,378) Arbitrage Transfer 0 0 oO 0 0 i?)0 0 0 800,000 4,329,719 2,541,824 2,284,560 0 2,284,560 |(2,045,159) Surplus (Deficit)0 (*)(0)i?)0 0 (¢} r -ea een ¢|e ;;4teeeenCORMeeIneihNTReeateelAmEEERlLnNEI=Nw Lea Ate nite oe wh ae we ere ..°i wee amen Other Information Operating Reserve *1,116,353 802,357 918,677 898,383 906,382 939,383 Operating Reserve -Battle Creek”0 0 8,760 39,949 90,798 90,798 Monthly Contributions 1,654,119 1,431,025 3,303,227 1,541,401 1,559,775 1,574,879 Monthly Contributions Battle Creek 0 0 211,119 211,819 190,380 190,380 *Required to be 20%of budgeted operating expense 10/12/20188:15 AMV2-2019-BradleyBudget-DRAF TAmend2-101118.xisxSch A Page 4 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Capital Purchases Not Funded by R&C Fund Schedule A-1 FY17 FY18 FY18 FY19 @03/31/18 Approved Capital Project Description Actuals Actuals Projected Budget [Comments ReplaceAutomate Fish Water Valves &Actuators 89 231,490 385,000 __[Phase one is the new radio upgrades completed 2018.Will likely extend into 2019,mostfundscomefrom2018excessmoniesonloaderandcrane. Equipment storage shed (unheated bus barn)-11,646 100,000 -Design Estimate is 470,000.This project was moved to the FY19 R&C fund $500,000. 1 ton Flatbed with Plow --62,000 - Jpurchased 2018 for approx.$62k Battle Creek Bridge Repair Refurbishment (2)---200,000 {Moved to FY2019 Mobil Crane 40 to 50 tons (used)-69,920 69,920 -[purchased 2018 for 31,200 +10,000 in repair.Excess FY18 budget moved to fish water Replace Michigan Loader --250,000 -purchased 2018 for approx.$250,000.Excess FY18 budget moved to fish water. Upgrade Crews Quarters\Residence Kitchen -1,850 --Moved to O&M budget FERC 542.Schedule B Replace 1988 Suburban Ambulance -51,977 58,000 -purchased 2018 for approx.$58k 4/2 ton Pick up truck -33,028 33,028 -{purchased 2018 for approx.$32k Replace High Bay Lighting in Power Plant 14,220 20,000 -JFY19 replace high bay lighting is in the FY19 O&M budget .. ..Purchase long lead parts Note we are monitoring Unit 2 for any degradation.We may needTurbineNozzleRepair60,000 to make a mid year budget adjustment if work is required. Tire machine 42.500 'The current tire machine that is on site is from 1990.Used to change tires on trucks and,automobiles from summer tires to snow tires. Total Non R&C Capital Purchases 89 414,131 977,948 272,500 10/12/20188:15 AMV2-2019-BradleyBudget-DRAF TAmend2-101118.xsxSch A-1 Page 5 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Operations &Maintenance Budget Schedule B HEA 3,209,154 HEA 2,704,303 HEA 2,959,282 HEA 3,124,288 CEA 190,187 CEA 183,499 CEA 114,448 CEA 114,448 AEA 1,754,770 AEA 1,705,585 AEA 1,458,178 AEA 1,458,178 propsed changes made by Amend 2 highlighted Fy17 FY18 Fy19 FY19 FY17 FY18 FY19 Increase Amended {Over)Under Approved Actual @ {Over}Under Approved OLD NEW FY19--DRAFT (Decrease} Budget Actual Budget to date Budget 11/30/17 _}Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original y by cost type Labor &Benefits 2,005,079 1,533,371 471,708 1,889,814 658,383 4,231,431 1,900,742 983,203 498,742 1,481,945 {418,797) (OCR 155%--------583,803 583,803 583,803 Travel 132,950 27,009 105,941 76,950 4,978 71,972 33,950 33,950 33,950 33,950 - Training 49,300 35,736 13,564 49,300 8,130 41,170 49,300 49,300 49,300 49,300 - Contractual 1,217,418 850,184 367,234 841,062 476,194 664,868 1,033,216 1,033,216 1,033,216 1,033,216 - Supplies &Materials 229,358 113,151 116,207 183,345 77,130 106,215 204,345 204,345 204,345 204,345 . Other Costs 381,744 298,031 83,713 387,818 33,410 354,408 69,818 69,818 69,818 69,818 - Equipment,Furniture and Machinery 11,500 9553 1,947 7,000 3,091 3,909 7,000 7,000 7,000 7,000 - Maintenance Projects ----795 (795)----- Administrative Costs 1,126,761 1,144,749 (17,988)1,158,098 418,402 739,696 1,233,537 1,233,537 1,233,537 1,233,537 - 5,154,110 4,011,785 1,142,326 4,593,387 1,380,513 3,212,874 4,531,908 3,614,369 3,713,711 4,696,914 165,006 FERC $35 -Operation Supervision &Engineering Operations Sup/Eng Bradiey Lake Operating Labor &Benefits 299,649 266,820 32,829 265,587 114,153 151,434 270,953 135,477 §3,597 189,074 (81,879) IDCR 155%->-----:77,849 77,849 77,849 Travel 10,450 9.452 998 10,450 347 10,103 10,450 10,450 10,450 10,450 - Training 9,300 11,171 (1,871)9,300 1.911 7,389 9,300 9,300 9,300 9,300 - Contractual 1,400 300 1,100 1,000 -1,000 1,000 1,060 1,000 1,000 - Supplies &Materials 4,100 §,781 (1,681)4,000 367 3,633 4,000 4,000 4,000 4,000 - Bradley Lake Operating Total 324,899 293,523 31,376 290,337 116,778 173.559 295,703 160,227 156,196 291 673 (4.030) FERC 535 -Operation Supervision &Engineering Total 324,899 293,523 31,376 290,337 116,778 173,559 295,703 [HEA 160,227 JHEA 156,196 JHEA 291,673 [HEA (4,030) FERC 537 -Hydraulic Expenses Hydraulic Expenses Bradley Lake Operating Labor &Benefits 92,746 65,670 27,076 94,453 28,821 65,632 98,853 49,426 30,574 80,000 (18,853) {DCR 155%-:-----:41,545 41,516 41,515 Contractual 4,000 5.647 (1.647)2,000 -2,000 2,000 2,000 2,000 2,000 - Supplies &Materials 2,900 886 2,014 2,000 352 1,648 2,000 2,000 2,000 2,000 - Bradley Lake Operating Total 99,646 72,202 27,444 98,453 29,173 69,280 102,853 §3,426 76,090 125,516 22,663 FERC 537 -Hydraulic Expenses Total 99,646 72,202 27,444 98,453 29,173 69,280 102,853 JHEA 53,426 [HEA 76,090 JHEA 125,516 [HEA 22,663 10/12/20188:15 AMV2-2019-BradleyBudget-DRAFTAmend2-101118.xisxSch B Page 6 of 17 FY17 Fyi8 FY19 FY19 FY17 FY18 FY19 Increase Amended (Over)Under Approved Actual @ (Over)Under Approved OLD NEW FY19 =DRAFT}(Decrease) Budget Actual Budget to date Budget 11/30/17 |Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original FERC 538 -Electric Expenses Electric Expenses Bradley Lake Operating Labor &Benefits 242,940 193,058 49,882 232,294 85,570 146,724 240,998 420,499 88,312 208,811 (32,187) IDCR 155%-ba --::--402,222 102,222 102,222 Travel 7,000 8,638 (1,638)7,000 2,930 4,070 7,000 7,000 7,000 7,000 * Training 25,000 23,737 1,263 25,000 -25,000 25,000 25,000 25,000 25,000 - Contractual 2,000 1,400 600 2,000 1,400 600 2,000 2,000 2,000 2,000 - Supplies &Materials 8,500 4,672 3.828 9,732 -9,732 9,732 9,732 9,732 9,732 - Bradley Lake Operating Total 285,440 231,505 53,934 276,026 89,900 186,126 284,730 164,231 234,265 354,764 70.034 FERC 538 -Electric Expenses Total 285,440 231,505 53,934 276,026 89,900 186,126 284,730 JHEA 164,231 [HEA 234,265 JHEA 354,764 |HEA 70,034 FERC 539 -Misc.Hydraulic Power Generation Expenses Misc Hydro Power Exp Bradley Lake Operating Labor &Benefits 178,991 137,740 41,251 179,530 66,934 112,596 216,960 108,478 50,852 159,330 (57,630) IDCR 155%-:.----:41,515 41,515 41,515 Training 15,000 829 14,171 15,000 6,219 8,781 15,000 45,000 45,000 15,000 - Contractual 297.048 214,899 82,149 287,525 68,505 219,020 287,525 287,525 287,525 287,525 - Supplies &Materials 17,900 19,695 (1,795)17,900 5,466 12,434 17,900 17,900 17,900 17,900 - Bradley Lake Operating Total 508.939 373,163 135,777 499,955 147,124 352,831 537,385 JHEA 428,903 JHEA 412,793 JHEA §214,271 [HEA (16.114)! BRADLEY CIRCUITS/RADIO TO BERNICE LK Other Costs 35,695 35,696 (1)!35,695 14,873 20,822 35,695 35,695 35,695 35,695 - BRADLEY CIRCUITS/RADIO TO BERNICE LK Total 35,695 35,696 (1)35,695 14,873 20,822 35,695 JHEA 35,695 JHEA 35,695 [HEA 35,695 [HEA - BRADLEY CIRCUITS BERNICE LK TO ANCH Other Costs 29,773 29,540 233 29,773 12,334 17,439 29,773 29,773 29,773 29,773 - BRADLEY CIRCUITS BERNICE LK TO ANCH Total 29,773 29,540 233 29,773 12,334 17,439 29,773 JCEA 29,773 JCEA 29,773 ICEA 29,773 [CEA - FERC 539 -Mise.Hydraulic Power Generation Expenses Total 574,407 438,398 136,009 565,423 174,332 391,091 602,853 494,371 478,261 586,739 (16,114) FERC 540 -Rents FERC Land Use Fee Bradley Lake Operating Other Costs 312,176 230,614 81,662 318,000 -318,000 ----- Bradley Lake Operating Total 312,176 230,614 81,562 318,000 -318,000 ----- FERC 540 -Rents Total 312,176 230,614 81,562 318,000 -318,000 - JAEA - JAEA - JAEA -[AEA - 10/12/20188:15 AMV2-2019-BradleyBudget-DRAFTAmend2-101118.xIsxSch B Page 7 of 17 FY17 FY18 Fy19 FyY19 FY17 FY18 FY19 Increase Amended (Over)Under Approved Actual @ {Over)Under Approved OLD NEW FY19 =DRAFT|(Decrease) Budget Actual Budget to date Budget 11/30/17 |Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original FERC 541 -Maintenance Supervision &Engineering Maint Supervision/Eng Bradley Lake Operating Labor &Benefits 224,284 229,602 (5,318)272,586 114,811 157,775 277,696 138,849 56,968 195,817 (81,879) IDCR 155%°-bl fd fd ---77,849 77,849 77,849 Bradley Lake Operating Total 224,284 229.602 (5.318)272,586 414.841 467,775 277 696 138.849 134.817 273,666 (4.030) FERC S41 -Maintenance Supervision &Engineering Total 224,284 229,602 (5,318)272,586 114,811 157,775 277,696 JHEA 138,849 |HEA 134,817 JHEA 273,666 [HEA (4,030) FERC 542 -Maintenance of Structures Maintenance of Structures Bradley Lake Operating Labor &Benefits 92,746 65,629 27,117 94,453 28,848 65,605 98,853 49,426 27,298 76,723 (22,130) IDCR 155%fa -::----37,066 37,066 37,066 Contractual 10,000 -10,000 10,000 -10,000 10,000 40,000 10,000 10,000 - Supplies &Materials 53,713 42,233 11,480 53,713 26,696 27,017 $3,713 $3,713 §3,713 §3,713 - Equipment,Furniture and Machinery 11,500 8,318 3,182 7,000 3,091 3,909 7,000 7,000 7,000 7,000 - Maintenance Projects --------.-. Bradley Lake Operating Total 167,959 116,180 §1,779 165,166 58,635 106,531 169,566 120,139 435,077 184,503 14,937 BRADLEY UPGRADE CREWS QUARTERS/RESIDENCE KITCHEN Contractual :--:-:165,000 165,000 165,000 165,000 - BRADLEY UPGRADE CREWS QUARTERS/RESIDENCE KITCHEN Total -ba ----165 000 165,000 465,000 165,000 - FERC $42 -Maintenance of Structures Total 167,959 116,180 $1,779 165,166 58,635 106,531 334,566 [HEA 285,139 JHEA 300,077 JHEA 349,503 JHEA 14,937 FERC 543 -Maintenance of Reservoirs,Dams &Waterways Maint Res,Dams,WWays Bradley Lake Operating Labor &Benefits 50,409 50,035 374 50,610 1,471 49,139 53,091 26,545 14,326 40,870 (12,221) IOCR 155%--:---*-19,932 19,932 19,932 Contractual §,200 63,704 (58,504)6,500 -6,500 6,500 6,500 6,500 6,500 - Bradley Lake Operating Total 55,609 113,739 {58.130},57,110 1.471 §5,639 §9,591 33,045 40,757 67,302 774 BRADLEY NUKA REPAIR Contractual 15,000 980 14.020 15,000 -15,000 15,000 15,000 15,000 15,000 - Equipment,Furniture and Machinery ----------- BRADLEY NUKA REPAIR Total 15,000 980 14,020 15,000 -15,000 18,000 46,000 15,000 15,000 - BRADLEY POWER TUNNEL MAINT (Dam) Contractual 15,000 9,431 5.569 15,000 -15,000 15,000 15,000 15,000 15,000 - BRADLEY POWER TUNNEL MAINT (Dam)Total 15,000 9.431 5,569 45,000 -15,000 15,000 45,000 18,000 15,000 - BRADLEY POWER TUNNEL DRAIN CLN/INSP (P/House) Maintenance Projects *---------- BRADLEY POWER TUNNEL DRAIN CLN/INSP (P/House)Total °---:------ FERC 543 -Maintenance of Reservoirs,Dams &Waterways Total 85,609 124,151 (38,542)87,110 1,471 85,639 89,591 JHEA 63,045 JHEA 70,757 JHEA 97,302 JHEA 7,711 10/12/20188:15 AMV2-2019-BradleyBudget-ORAFTAmend2-101118.xIlsxSch B Page 8 of 17 40/12/20188:15 AMV2-2019-BradleyBudget-DRAFTAmend2-101118.xisxSch B FY17 Fv18 Fy19 Fy19 FY17 FY18 FY19 Increase Amended (Over)Under Approved Actual @ (Over}Under Approved OLD NEW FY19 DRAFT](Decrease) Budget Actual Budget to date Budget 11/30/17 __|Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original FERC 544 -Maintenance of Electric Plant Maintenance of Elec Plant Bradiey Lake Operating Labor &Benefits 370,983 266,161 104,822 379,102 116,720 262,382 397,141 198 568 108,683 307,251 (89,890) IDCR 155%-------:148,789 148,789 148,789 Travel 4,500 740 3,760 4,500 -4,500 4,500 4,500 4,500 4,500 - Contractual 79,000 36,844 42,156 70,000 19,363 50,637 70,000 70,000 70,000 70,000 - Supplies &Materiais 27,245 13,081 14,164 20,000 1,476 18,524 20,000 20,000 20,000 20,000 - Maintenance Projects ----------- Bradley Lake Operating Total 481,728 316,826 164,902 473,602 137,559 336,043 491,641 293,068 351,972 550,540 58.899 BRADLEY HIGH BAY LIGHTS Supplies &Materials ------30,000 30,000 30,000 30,000 - BRADLEY HIGH BAY LIGHTS Total .-----30,000 30,000 30,000 30,000 - FERC 544 -Maintenance of Electric Plant Total 481,728 316,826 164,902 473,602 137,559 336,043 521,641 JHEA 323,068 [HEA 381,972 JHEA 580,540 [HEA 58,899 FERC 545-Mai e of Misc.Hydraulic Plant Maint of Misc Hydr Plant Bradley Lake Operating Labor &Benefits 92,746 66,129 26,617 94,453 29,149 65,304 98,853 49,426 27,298 76,723 (22,130) IDCR 155%:bd -:-:--37,066 37,066 37,066 Contractual 3,900 5,274 (1,374)3,900 :3,900 3,900 3,900 3,900 3,900 - Supplies &Materials 43,000 20,631 22,369 35,000 41,000 (6,000)35,000 35,000 35,000 35,000 - Bradiey Lake Operating Total 139,646 92,034 47.612 133,353 70.149 63.204 137,753 88,326 103,264 152,690 14,937 BRADLEY FISH WATER DSGN/MIDDLE FORK SHACK IMPR Contractual 20,000 -20,000 -1,345 (1,345)----- BRADLEY FISH WATER DSGN/MIDDLE FORK SHACK IMPR Total 20,000 -20,000 -1,345 (1,345)---.- FERC 545 -Maintenance of Misc.Hydraulic Plant Total 159,646 92,034 67,612 133,353 71,494 61,859 137,753 JHEA 88,326 [HEA 103,264 [HEA 152,690 JHEA 14,937 FERC 556 -System Control &Load Dispatching System Cnti &Load Disp Bradley Lake Operating Labor &Benefits 49,502 27,294 22,207 20,618 7,176 13,442 21,506 10,753 10,754 21,507 4 IDOCR 155%-----ba ba ---- Contractual 60,500 66,135 (5,635)§3,000 §,437 47,563 §3,000 §3,000 §3,000 §3,000 - Supplies &Materials 6,000 2,229 3,771 6,000 -6,000 6,000 6,000 6,000 6,000 - Bradley Lake Operating Total 116.002 95.657 20,344 79,618 12,613 67,005 80,506 JHEA 69,753 [HEA 69,754 JHEA 80,507 [HEA 1 BRADLEY EMERSON ANTIVIRUS UPGRADE Contractual -----40,000 40,000 40,000 40,000 - BRADLEY EMERSON ANTIVIRUS UPGRADE Total ------40,000 [HEA 40,000 JHEA 40,000 JHEA 40,000 [HEA - BRADLEY POWERHOUSE PC'S Contractual ::-:ba ---:-- BRADLEY POWERHOUSE PC'S Total :---:--_JHEA =_JHEA -_JHEA -HEA - Page9of17 FY17 FY18 FY19 Fy19 FY17 FY18 FYi9 Increase Amended (Over)Under Approved Actual @ (Over}Under Approved OLD NEW FY19 DRAFT](Decrease) Budget Actual Budget to date Budget 11/30/17}Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original Snow Measurement Bradley Lake Operating Contractual 10,000 10,000 -10,000 10,000 -12,000 [AEA 12,000 JAEA 12,000 JAEA 12,000 JAEA - Bradley Lake Operating Total 40,000 10,000 -10,000 10,000 -12,000 12,000 12,000 12,000 - Seismic Service Bradley Lake Operating Contractual 60,370 61,358 (988)62,000 16,778 45,222 62,000 JAEA 62,000 JAEA 62,000 JAEA 62,000 [AEA - Bradley Lake Operating Total 60,370 61,358 (988)62,000 16,778 45,222 62,000 62,000 62,000 62,000 - Streamguaging Serv Bradley Lake Operating Contractual 310,000 157,164 152,836 213,137 §3,284 159,853 206,291 JAEA 206,291 [AEA 206,291 [AEA 206,291 JAEA - Bradley Lake Operating Total 310,000 157,164 152,836 213,137 53,284 159,853 206,291 206,291 206,291 206,291 - Permits Bradley Lake Operating Other Costs 100 450 (350)350 -350 350 JAEA 350 {AEA 350 JAEA 350 JAEA - Bradley Lake Operating Total 100 450 (350)350 -350 350 350 350 350 - FERC 556 -System Control &Load Dispatching Total 496,472 324,629 171,842 365,105 92,675 272,430 401,147 390,394 390,395 401,148 1 FERC 562 -Station Expenses Station Expenses SVC/Substation Maintenance Contract Labor &Benefits 130,414 151,868 (21,455)123,726 64,731 58,995 65,675 [CEA 65,675 [CEA -JCEA 65,675 [CEA - Labor &Benefits ----29,043 [HEA 14,522 JHEA 44,522 [HEA 29,043 JHEA - Travel 6,000 -6,000 6,000 1,701 4,299 2,000 JCEA 2,000 ICEA 2,000 JCEA 2,000 [CEA - Contractual 4,000 3,447 554 4,000 -4,000 2,000 JCEA 2,000 CEA 2,000 JCEA 2,000 JCEA - Contractual ------30,000 JHEA 30,000 [HEA 30,000 {HEA 30,000 JHEA - Supplies &Materials 16,000 3,848 12,152 16,000 1,773 14,227 11,000 {CEA 11,000 [CEA 114,000 [CEA 11,000 [CEA - Supplies &Materials -----.10,000 [HEA 40,000 [HEA 40,000 [HEA 10,000 [HEA - Other Costs 4,000 1,148 2.852 4,000 6,202 (2,202)4,000 JCEA 4,000 [CEA 4,000 JCEA 4,000 JCEA - Maintenance Projects ----795 (795)- JCEA -JCEA -JCEA -CEA - S$VC/Substation Maintenance Contract Total 160.414 160,341 103 153,726 75,202 78,524 183,718 139,197 73,522 153,718 - FERC 562 -Station Expenses Total 160,414 160,311 103 153,726 75,202 78,524 153,718 139,197 73,522 153,718 - 10/12/20188:15 AMV2-2019-BradleyBudget-DRAF TAmend2-101118.xisxSch B Page 10 of 17 10/12/20188:15 AMV2-2019-Bradley Budget-DRAFTAmend2-101118.xIsxSch B FY17 FYi8 [_Fv19 FY19 FY17 FY18 Fy19 Increase Amended {Over}Under Approved Actual @ (Over)Under Approved OLD NEW FY19 =DRAFT}(Decrease) Budget Actual Budget to date Budget 11/30/17 |Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original FERC 571 -Maintenance of Overhead Lines Maint of OH Lines Bradley Lake Operating Labor &Benefits 479,671 7,014 172,657 82,402 -82,402 31,120 18,560 16,560 31,120 - Travel 95,000 8.179 86,821 49,000 -49,000 10,000 10,000 10,000 10,000 - Contractual 50,000 -50,000 86,000 -86,000 50,000 50,000 50,000 50,000 - Supplies &Materials 50,000 95 49,905 19,000 -19,000 5,000 5,000 §,000 5,000 - Other Costs -584 (584)-------- Bradley Lake Operating Total 374.671 16,872 358,799 236,402 -236.402 96,120 80,560 80,560 96,120 - BRADLEY JUNCTION SWITCH REMOVAL Travel 5,000 -§.000 -------- Contractual 70,000 73,076 (3,076)------=- Other Costs >-:-:->:--: BRADLEY JUNCTION SWITCH REMOVAL Total 75,000 73,076 1,924 -------- MARKER BALL REPLACEMENT Labor &Benefits -6,352 (6,352)-------- Travel 5,000 :5,000 -------- Contractual 200,000 140,526 59,474 -83 (83)----- Equipment,Furniture and Machinery -1,235 (1,235)-------- MARKER BALL REPLACEMENT Total 205.000 148,113 56.887 -83 (83)----- FERC 571 -Maintenance of Overhead Lines Total 654,671 237,061 417,610 236,402 83 236,319 96,120 JHEA 80,560 [HEA 80,560 JHEA 96,120 [HEA - FERC 920 &930 -Administrative Expense AEA Bradley Fixed Admin Fees Bradley Lake Operating Administrative Costs 200,000 200,000 -200,000 83,333 116,667 200,000 JAEA 200,000 JAEA 200,000 JAEA 200,000 [AEA - Bradley Lake Operating Total 200,000 200,000 -200,000 83,333 416,667 200,000 200,000 200,000 200,000 - Operating Committee Exp-Audit Bradley Lake Operating Administrative Costs 16,494 16,500 (6)16,800 -16,800 16,500 JAEA 16,500 JAEA 16,500 [AEA 16,500 [AEA : Bradley Lake Operating Total 16,494 16,500 (6)16,800 -16,800 16,500 46,500 16,500 16,500 - Operating Committee Exp-Legal Bradley Lake Operating Administrative Costs 25,000 57,444 (32,444)25,000 40,499 (15,499)25,000 JAEA 25,000 [AEA 25,000 JAEA 25,000 JAEA : Bradley Lake Operating Total 25,000 57,444 (32.444)25,000 40,499 (15,499)25,000 25,000 25,000 25,000 - Page 11 of 17 FY17 Fy18 FY19 Fy19 FY17 FY18 FY19 Increase Amended {Over)Under Approved Actual @ {Over)Under Approved OLD NEW FY19 ORAFT|(Decrease) Budget Actual Budget to date Budget 11/30/17 _|Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original Operat Committee Exp-Arbitrage Bradley Lake Operating Administrative Costs 3,630 3,630 -3,380 -3,380 2,935 JAEA 2,935 JAEA 2,935 FAEA 2,935 JAEA - Bradley Lake Operating Total 3,630 3,630 -3,380 -3,380 2,936 2,935 2,935 2,935 - Trust &Account Fees Bradley Lake Operating Administrative Costs 12,000 11,918 82 11,918 5,959 5,959 11,918 JAEA 11,918 [AEA 41,918 JAEA 11,918 [AEA - Bradley Lake Operating Total 12,000 11,948 82 114,918 5,959 5,959 11,918 41,918 41,918 14,918 - Misc Admin Bradley Lake Operating Administrative Costs 7 10,000 (10,000)40,000 -10,000 10,350 JAEA 10,350 [AEA 10,350 JAEA 10,350 JAEA - Bradley Lake Operating Total -10,000 {10,000}40,000 -10,000 10,350 10,350 10,350 10,350 - FERC 920 &930 -Administrative Expense Total 257,124 299,492 (42,368)267,098 129,791 137,307 266,703 266,703 266,703 266,703 - FERC 924 &925 -Insurance Premiums Insurance Premiums Bradley Lake Operating Administrative Costs 500,000 §02,391 (2,391)525,000 236,957 288,043 600,834 JAEA 600,834 [AEA 600,834 JAEA 600,834 JAEA - Administrative Costs 64,637 §2,279 12,358 56,000 20,718 35,282 56,000 [HEA 56,000 [HEA 56,000 {HEA 56,000 [HEA - Bradley Lake Operating Total §64,637 §54,670 9,967 581,000 257,676 323,325 656,834 656,834 656,834 656,834 - Risk Management Bradley Lake Operating Administrative Costs :----:- JCEA +[CEA - JCEA - |CEA - Bradley Lake Operating Total ----------- FERC 924 &925 -Insurance Premiums Total 564,637 554,670 9,967 581,000 257,675 323,325 656,834 656,834 656,834 656,834 - FERC928-Regul yc ission Exp FERC Admin Fees Administrative Costs 180,000 122,210 57,791 185,000 -185,000 185,000 JAEA 185,000 [AEA 185,000 JAEA 185,000 JAEA - Bradley Lake Operating Total 180,000 122,210 §7,791 185,000 -185,000 185,000 185,000 485,000 185,000 - FERC Retated Prof Services FERC Part 12 Inspection Administrative Costs 25,000 24,113 887 ---- JAEA - JAEA - JAEA -JAEA - Contractual Engineer-FERC license issues Administrative Costs 100,000 144,264 (44,264)125,000 30,936 94,064 125,000 JAEA 125,000 JAEA 125,000 JAEA 125,000 JAEA - Bradley Lake Operating Total 125,000 168,377 (43,377)125,000 30,936 94,064 125,000 125,000 125,000 125,000 - FERC 928 -Regul yc ission Exp Total 305,000 290,586 14,414 310,000 30,936 279,064 310,000 310,000 310,000 310,000 - Total Bradley Lake Budget 5,154,110 4,011,785 1,142,326 4,593,387 1,380,513 3,212,874 4,531,908 3,614,369 3,713,711 4,696,914 165,006 10/12/20188:15 AMV2-201 9-BradleyBudget-DRAF TAmend2-101118.xIsxSch B Page 12 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Monthly Utility Contributions Schedule C Power Purchaser Chugach Electric Municipality of Anchorage Homer Electric Matanuska Electric Golden Valley Electric City of Seward Rounding Power Purchaser Chugach Electric Municipality of Anchorage Homer Electric Matanuska Electric Golden Valley Electric City of Seward proposed changes made by Amend 2 highlighted FY2017 FY2018 FY2019 FY2019 FY2019 FY2019 Change between Percent Amended Amended Original Amended 7/20/18 Proposed Proposed FY2018 to Share Budget Budget Budget Budget Change Amendment 2 amended FY2019 30.4%5,941,176 6,025,086 5,623,032 5,690,052 55,104 5,745,156 (279,930) 25.9%5,061,732 5,133,216 4,790,676 4,847,784 46,944 4,894,728 (238,488) 12.0%2,345,208 2,378,322 2,219,616 2,246,076 21,744 2,267,820 (110,502) 13.8%2,696,988 2,735,076 2,552,556 2,582,988 25,008 2,607,996 (127,080) 16.9%3,302,832 3,349,470 3,125,964 3,163,224 30,636 3,193,860 (155,610) 1.0%195,432 198,192 184,968 187,176 1,812 188,988 (9,204) 3 (2)1 5 6 100.0%19,543,371 19,819,362 18,496,810 18,717,301 181,253 18,898,554 (920,814) FY2018 FY2019 FY2019 Percent FY2017 Monthly FY2019 FY2019 Amend 2 Proposed Amend 2 Share Monthly Accelerated Monthly Monthly Change Monthly 30.4%495,098 1,004,181 468,586 474,171 4,592 478,763 (525,418) 25.9%421,811 855,536 399,223 403,982 3,912 407,894 (447,642) 12.0%195,434 396,387 184,968 187,173 1,812 188,985 (207,402) 13.8%224,749 455,846 212,713 215,249 2,084 217,333 (238,513) 16.9%275,236 558,245 260,497 263,602 2,553 266,155 (292,090) 1.0%16,286 33,032 15,414 15,598 151 15,749 (17,283) 100.0%1,628,614 3,303,227 1,541,401 1,559,775 15,104 1,574,879 (1,728,348) 10/12/20188:15 AMV2-2019-BradleyBudget-DRAFTAmend2-101118.xIlsxSch C Page 13 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRE PROJECT R&C Fund 0 and Schedule D Actual Actual Actual PROJECTED PROJECTED PROJECTED PROJECTED PROJECTEDTOREPAYTOREPAYTOREPAYTOREPAY Descri Oisburse at O8/30N8 Disburse mt 06/30/17 Disburse at 06/30/18 Disburse at 06/30/19 R&C FUND PROJECTS |Governor 0,00 4,052,070.14 0.00 4,082,070.14 0.00 4.052,070.14 9.00 4,052,070.14 Replace RFLS 0.00 281,092.69 0.00 251,092.69 0.00 251,092.69 0.00 251,092.69 Replace Runners 0.00 1,946,732.79 0.00 1,946,732.79 0.00 1,946,732.79 0.00 1,946,732.79 Replace cable from dam to power house 0,00 2.321,922.94 0.00 2.321,922.94 0.00 2.321,922.94 0.00 2.321,922.94 Reptace power system stabiizer 8.00 619,205.10 0,00 619,205.10 0.00 619,205.10 0.00 619,205.10 ]Replace two RTUs.0.00 86.905.27 0.00 86,905.27 9.00 86,905.27 0.00 96.905.27 Culvert Repairs.0.00 675,966.79 0.00 675,966.79 0.00 675,966.79 0.00 675.966,79 iTrane Towers Frost Jactong Repairs 0.00 887,596.62 0.00 887,596.62 9.00 887 596.62 0.00 887 $96.62ReptacePlantandSCADAControls0.00 1,344,683.05 0.00 1,344,683.06 0.00 1,344,683.05 0.00 1,344,683.05 Vibration Monitonng System 0.00 490.00 0.00 490.00 0.00 490.00 0.00 490,00 Battle Creek Feasibiity 0.00 0.00 0.00 0.00 0,00 0.00 9.00 0.00 Fe Alarm System Replacement 0.00 0.00 0.00 0.00 100,000.00 100,000.00 250,000.00 350,000.00 Battle Creek Oversion 149,683.91 4,144,017.74 25,982.26 1,170,000.00 0.00 1,170,000,00 0.00 1,170,000.00 Reptace Electro-Mechanical Relays 0.00 1,277,197.06 0.00 1,277,197.06 0.00 1.277,197.06 0.00 1.277,197.06 Fishwater Screen Debris Removal 290,306.98 12,236.43 0.00 312,236.43 0.00 312,236.43 0.00 312,236.43 [Turbine Nozze Repair 1,320,234.57 1,416,658.06 12,203.01 1,428,861.07 0.00 1,426,861.07 0.00 1,428,861.07 Rase 0.00 0,00 0.00 0.00 9.00 0.00 0.00 0.00 svc Oaves Creek|9,570,577.34 1,570,577.34 |5,606,007.81 7,176,585.15 |1,391,899.49 8,568,484.64 0.00 8,568,484.64 Equipment Storage Shed 0.00 0.00 8.00 0.00 0,00 0.00 $00,000.00 500,000.00 Emerson Operating System Upgrade 0,00 0.00 0.00 0,00 0.00 0.00 700,000.00 700,000.00 3,330.802.80 47,907.352.02 |5.644,193.08 23.551.545.10]1.491.899.49 25.043 444.59]1,450.000.00 26.403.444 59]Current Year R&C Repayment (3,461,591.16)(3,262,788,00}(2,793,306.63)|(2,746,067.65. 'Adjust bal to $5 mill (won't be corrected until year end)0.00 0.00 0.00 0.00 Less interest in Fund Applied to Repayment '287 080.93 (361,780.54)0,00 0,00 Net Tranefer from Revenue Fund 3,748,672.09 (3,624,568.54)_{2,793.306.53}]2,746 .067.65 iCurnulative Prior Years R&C Repayments (12,716,539.31))(15,409,249.92 (17,886,155.08 (20,527 878.92DuebacktoUbites:1,055,961.48 1,147 663.37 181,582.79 0.00 IR&C Cumulative Interest (Retained)Applied As Part of Repayment 0.00 0.00 9.00 9.00 INet R&C Repayments (11,660,577.83)14.261 586,54)]_{17,.734,572.20](20,527,878.92' INET OVE TO R&C FUND 2,498,102.10 5.665.390.02 4.515 565.67 3.219,498.02 R&C FUND CASH FLOW PROJECTION Beginning investment Balance 3,.212,607.32 5,623,509.49 3,219.624.39 786,514.13 Drsbursements-current year (1,265,152.32)(2,906,842.05)(1,341 ,405.49)};(1,350,000.00!Disbursements-prior year accrued {22,899.86}{2,065,650,48)}(2,737,351.03}(100,000.00: R&C Repayment to utilties (20,211.52!(1,055,961,11)}(1,147 ,663,37 (202,076.79)Net other cash inflow outflow)0.00 0.00 0.00 Current year interest earnings 361,780.54 0.00 0.00 Current year Participants Contributions to R&C 3,262,788.00 2.793,306,63 2.746 067.65EndingInvestmentBalance3.219,624.39 786.541.43 1.880,501.98 Accrued R&C Payable at year end-Due to Utilities (4,055,961.11)(1,147,663,37}{202,076,79)}0,00 Accrued R&C vendor Payable at year end (2,065,650.48)}(2,737,351.03)I (100,000.00)(100,000.00; PROJECTED NET DUE +ENDING INVESTMENT BALANCE 5,000.000.00 §.000,000.00 5.000.000.00 5.000.000.00 total repaid remaining to REPAYMENT AMOUNT a 6/30/19 Pay at 7/1/19 Fr1s FY20 Frat1$1,401.948.53 X 25%ali 4 years ith yr 350,487.13 1,401,948.53 °° I$1,834.499.92 X 25%yr 1}25%yr 2 |50%yr 3 yr 917,249.96 1,834,499.92 2 . $789 697.09 X 25%yr 1 |75%yr 2 final yt $92,272.82 789,697.09 .2 {$3,330,802.80 X 25%yr 1 |32%yr 2 (25%yr 3]11st yr 832,700.70 f2nd yr 1,065,856.90 [3rd yr 832,700.70 Mth yr $99,544.50 3.330,802.80 - $5,644,193.08 x 25%all 4 years st yr 1,411,048.27 [2nd yr 4,.411,048.27 [ard yr 1,414,048.27 4,233,144.81 {1,411,048.27)-1,411,048,27 ° $1,491 899.49 x 25%all 4 years Ast yr 372,974.87 j2nd yr 372,974.87 745,949.75 (748,949.75)372,974.87 372,974.87 cS i$1,350,000 x 25%all 4 years ist yr 362,500.00 362,500.00 (1,087,500.00)362,500.00 362,500.00 362,500.00 ° 2.692 710.61 2.476.905.17 2.616.723.84 2.746,067.65 (3,244,498.02}_2,146,523.14 735,474.87 362,500.00 0.00 "FY 18 projects reflect budgeted and actual numbers for different projects depending on which is higher (budgeted or actual),so the R&C repayment amount reflects a conservative amount 10/12/20188:15 AMV2-2019-BradleyBudget-DRAF TAmend2-101118.xdsx Sch D Page 14 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Battle Creek Capital Construction Purchases Schedule E Total capital revenue fund purchases 10/12/20188:15 AMV2-2019-BradleyBudget-DRAF TAmend2-101118.xlsxSch E FY17 FY18 FY18 FY19 Original Amended Approved Capital Construction Project Description Actuals Budget [Budget 03/05/18]Budget Comments Battle Creek Diversion 798,072 400,000 - Total Construction 798,072 400,000 -: Used 2007 Chevrolet Silverado -8,800 - Used 2006 Chevrolet Silverado -7,700 - -16,500 - Page 15 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Battle Creek Administrative Costs Budget Schedule F HEA -HEA 262,438 CEA -CEA - AEA 43,000 AEA 191,550 Fy18 FY19 FY18 {Over}Increase Amended Under FY19 Amend (Decrease) Budget Actual Budget 1 Budget from PY s y by cost type : Administrative Costs 43,000 -43,000 453,988 410,988 43,000 -43,000 453,988 410,988 FERC 920,923,&930 -Administrative Expense Battle Creek Admin Fees Administrative Costs ---8,193 [HEA 8,193 Administrative Costs 22,000 -22,000 168,000 JAEA 146,000 Battle Creek Admin Fees Total 22,000 -22,000 176,193 154,193 Operating Committee Exp-Owners Representative Administrative Costs :--254,245 [HEA 254,245 Operating Committee Exp-Owners Representative Total ---254,245 254,245 Operating Committee Exp-Other Administrative Costs 500 -500 - |FAEA (500) Operating Committee Exp-Other Total 500 -500 -(500) Operating Committee Exp-Legal Administrative Costs 15,000 -15,000 15,000 JAEA - Operating Committee Exp-Legal Total 15,000 -15,000 15,000 - Operat Committee Exp-Arbitrage Administrative Costs 2,000 -2,000 2,000 JAEA - Operat Committee Exp-Arbitrage Total 2,000 -2,000 2,000 - Trust &Account Fees Administrative Costs 3,500 -3,500 6,550 JAEA 3,050 Trust &Account Fees Total 3,500 *3.500 6,550 3.050 FERC 920,923,&930 -Administrative Expense Total 43,000 .43,000 453,988 410,988 Total Bradley Lake Budget 43,000 -43,000 453,988 410,988 10/12/20188:15 AMV2-2019-BradleyBudget-DRAFTAmend2-101118.xisxSch F Page 16 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Battle Creek Monthly Participating Purchaser Contributions Schedule G POWER PURCHASER Chugach Electric Association Municipal Light &Power Homer Electric Association Matanuska Electric Association Golden Valley Electric Association City of Seward Rounding POWER PURCHASER Chugach Electric Association Municipal Light &Power Homer Electric Association Matanuska Electric Association Golden Valley Electric Association City of Seward *(1)The calculation the FY2018 2/2/2018 Amended Budget is shown below. FY2018 FY2018 FY2018 _._.FY2017 7/28/2017 2/2/2018 3/5/2018 FY2019 Percent Amended Amended Amended Amend 3 Approved Share Budget Budget Budget *(1)Budget Budget 39.38%315,040 157,520 236,521 301,379 899,660 0.00%-.--” 41.44%331,520 165,760 116,938 185,189 946,721 17.88%143,040 71,520 107,389 136,837 408,479 0.00%----- 1.30%10,400 5,200 7,808 9,949 29,699 1 1 1 100.00%800,000 400,000 468,657 633,356 2,284,560 FY2018 FY2018 Percent March April -June FY2019 Share Monthly Monthly Monthly 39.38%--59,130 80,749 74,972 0.00%---.- 41.44%--29,235 51,985 78,893 17.88%--26,847 36,663 34,040 0.00%----. 1.30%--1,952 2,666 2,475 100.0%--117,164 172,064 190,380 r Original Corrected Contributions FY2018 [Capital Capital Other Prior to 2/2/2018 :Reserve Reserve Available Other Amended i.Contributions ,Contributions J Funds Available Funds Budget 1,246,143 1,101,213 144,930 381,451 236,521 1,443,286 1,158,819 284,467 401,405 116,938 565,796 499,992 65,804 173,193 107,389 41,137 36,353 4,784 12,592 7,808 (1)1 3,296,363 2,796,378 499,985 968,640 468,657 10/12/20188:15 AMV2-2019-BradleyBudget-DRAFTAmend2-101118.xlsxSch G Page 17 of 17 8 Bicce Version 3:Trainee included in direct costs ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT 2019 DRAFT BUDGET -AMEND 2 DATE:10/19/18 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT 2019 Budget Contents Schedule Description Page # Overview of Budget Changes between FY19 Amendment 1 Budget and FY19 Amendment 2 Budget 3-4 Schedule A Budget Summary 5 Schedule A-1 Capital Purchases not funded by R&C 6 Schedule B Operations &Maintenance Budget 7-13 Schedule C Monthly Utility Contributions 14 Schedule D R&C Fund Disbursements and Repayments 15 Schedule E Battle Creek Capital Purchases 16 Schedule F Battle Creek Administrative Costs 17 Schedule G Battle Creek Monthly Utility Contributions 18 10/15/20183:44 PMH:\Accounting\AEA FY19 FS Shared Files\Bradiey Lake\Budget\V3-2019-BradleyBudget-DRAFTAmend2-101818.xIsx 2 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Overview of Budget Changes between FY19 Amendment 1 Budget and FY19 Amendment 2 Budget FY19 Amend 1 Budgeted Utility Contributions 18,717,301 From Schedule A REVENUES 1)Increase in interest income (16,754) (16,754) EXPENSES 2)Increase in Operations &Maintenance 255,560 3)Increase in Transfer To(From)Operating Reserve 51,112 306,672 Net change in utility contributions 289,918 FY19 Proposed Amendment 2 Budgeted Utility Contributions 19,007,218 Notes: 1)Increase in interest income Utility contributions increase and more current cash flow projections are available to use to estimate interest income 2)Increase in Operations &Maintenance Schedule B updated to reflect new O&M contract with HEA 3)Increase in Transfer to(from)Operating Reserve - operating reserve is required to be 20%of budgeted operating expense 10/15/20183:44 PMV3-2019-BradleyBudget-DRAFTAmend2-101818.xlsxOverview Page 3 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Budget Summary Schedule A proposed changes made by Amend 2 highlighted FY2018 FY2019 "FY2019 FY2019 FY2019 Inc(Dec)From FY2016 FY2017 03/05/18 Amended Original Amend 1 Amend 1 Amend 2 PY Amended Bradley Lake (excluding Battle Creek shown below)Actuals Actuals Budget Budget Budget Change DRAFT budget Budget Revenues,Expenses &Changes in surplus Revenues Utility Contributions (sch C)17,828,513 17,172,295 19,819,362 18,496,810 18,717,301 289,918 19,007,219 (812,143) Interest Income 1,930,547 1,991,555 1,845,000 1,855,000 1,895,000 16,754 1,911,754 66,754 19,759,060 19,163,850 21,664,362 20,351,810 20,612,301 306,672 20,918,973 (745,389) Expenses Operations &Maintenance (sch B)4,273,634 4,011,783 4,593,387 4,491,916 4,531,908 255,560 4,787,468 194,081 Renewals/Replacements (R&C Fund Repayments)(sch D)2,692,710 2,476,905 2,793,307 2,746,068 2,746,068 0 2,746,068 (47,239) Non R&C Capital Purchases (sch A-1)26,444 89 1,307,000 60,000 272,500 0 272,500 (1,034,500) Transfer To(From)Operating Reserve (8,747)(85,531)(112,145)(20,294)(12,296)$1,112 38,816 150,961 Debt Service (net of Capital Reserve Reductions)12,494,600 12,426,200 12,778,100 12,778,588 12,778,588 0 12,778,588 488 Arbitrage Transfer 281,419 334,404 304,713 295,533 295,533 0 295,533 (9,180) 19,759,060 19,163,850 21,664,362 20,351,810 20,612,301 306,672 20,918,973 |(745.389) Surplus(Deficit)ie]ie)0 0 0 0 0 Other Project Costs -Battle Creek Revenues,Expenses &Changes in surplus Revenues -Battle Creek Utility Contributions (sch G)0 800,000 400,000 QO.0 0 0 (400,000) Utility Contributions (sch G)0 0 633,356 2,541,824 2,284,560 0 2,284,560 1,651,204 Capital Reserve Contributions 0 0 2,796,378 is)0 0 .0 (2,796,378) Other Available Funds 0 0 499,985 0 0 0 0 (499.985)[*)800,000 4,329,719 2,541,824 2,284,560 0 2,284,560 (2,045,159) Expenses -Battle Creek Battle Creek Administrative costs (sch F)0 0 43,800 199,743 453,988 0 453,988 410,188 Capital Purchases (sch E)0 800,000 400,000 0°0 0 0 (400,000) Capital Purchases -Revenue Fund (sch E)0 i?)16,500 oO 0 0 0 (16,500) Transfer To(From)Operating Reserve 0 0 8,760 31,349 82,038 0 82,038 73,278 Debt Service 0 (°)903,064 1,880,894 1,748,534 0 1,748,534 845,470 IRS Subsidy 0 (*)0 (°)0 0 (*)0 Cost of Issuance 9th Series 0 0 21,217 Oo:0 0 0 (21,217) Capital Reserve Contribution 0 (*)2,936,378 429,838 (]0 0 (2,936,378) Arbitrage Transfer 0 0 0 0 0 0 0 _0 0 800,000 4,329,719 2,541,824 2,284,560 0 2,284,560 |(2,045,159) Surplus (Deficit)(9)0 (0)0 0 0 0 F a ay:2 -™ 'See,eee Dek ne eee hae 7 allt a Mes amelie ee a oe a 2 eetee Skee Seer Siet Maa te ea ere TA sah Ite ew:OR be Pe,ee ee ee ee te ter oe s Pee ee d Other information Operating Reserve *1,116,353 802,357 918,677 898,383 906,382 957,494 Operating Reserve -Battle Creek*0 0 8,760 39,949 90,798 90,798 Monthly Contributions 1,654,119 1,431,025 3,303,227 1,541,401 1,559,775 1,583,935 Monthly Contributions Battle Creek 0 0 211,119 211,819 190,380 190,380 *Required to be 20%of budgeted operating expense 10/15/20183:44 PMV3-201 9-BradleyBudget-DRAFTAmend2-101818.xlsxSch A Page 4 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Capital Purchases Not Funded by R&C Fund Schedule A-1 FY17 FY18 FY18 FY19 @03/31/18 Approved Capital Project Description Actuals Actuals Projected Budget [Comments Replace/Automate Fish Water Valves &Actuators 89 231,490 385,000 __[Phase one is the new radio upgrades completed 2018.Will likely extend into 2019,mostfundscomefrom2018excessmoniesonloaderandcrane. Equipment storage shed (unheated bus barn)-11,646 100,000 -|Design Estimate is 470,000.This project was moved to the FY19 R&C fund $500,000. 1 ton Flatbed with Plow --62,000 +Jpurchased 2018 for approx.$62k Battle Creek Bridge Repair Refurbishment (2)---200,000 «Moved to FY2019 {Mobil Crane 40 to 50 tons (used)-69,920 69,920 -[purchased 2018 for 31,200 +10,000 in repair.Excess FY18 budget moved to fish water Replace Michigan Loader --250,000 - Jpurchased 2018 for approx.$250,000.Excess FY18 budget moved to fish water. Upgrade Crews Quarters\Residence Kitchen -1,850 --}|Moved to O&M budget FERC 542.Schedule B Replace 1988 Suburban Ambulance -51,977 §8,000 - }Jpurchased 2018 for approx.$58k 1/2 ton Pick up truck -33,028 33,028 -[purchased 2018 for approx.$32k Replace High Bay Lighting in Power Plant 14,220 20,000 -|FY19 replace high bay lighting is in the FY19 O&M budget Turbine Nozzle Repair ...60,000 Purchase long lead parts Note we are monitoring Unit 2 for any degradation.We may needtomakeamidyearbudgetadjustmentifworkisrequired. Tire machine 12,500 The current tire machine that is on site is from 1990.Used to change tires on trucks andautomobilesfromsummertirestosnowtires. Total Non R&C Capital Purchases 89 414,131 977,948 272,500 10/15/20183:44 PMV3-2019-BradleyBudget-DRAFTAmend2-101818.xlsxSch A-1 Page 5 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Operations &Maintenance Budget Schedule B HEA 3,209,154 HEA 2,704,303 HEA 2,959,282 HEA 3,214,842 CEA 190,187 CEA 183,499 CEA 114,448 CEA 114,448 AEA 1,754,770 AEA 1,705,585 AEA 1,458,178 AEA 1,458,178 propsed changes made by Amend 2 highlighted FY17 FY18 Fyis9 Fyi9 FY17 FY18 FY19 Increase Amended (Over)Under Approved Actual @ {Over)Under Approved OLD NEW FY19 DRAFT](Decrease) Budget Actual Budget to date Budget 11/30/17 _|Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original y by cost type Labor &Benefits 2,005,079 1,533,371 471,708 1,889,814 658,383 1,231,431 1,900,742 983,203 589,296 1,572,498 (328,244) JIDCR 155%-ba -:----583,803 583,803 583,803 Travel 432,950 27,009 105,941 76,950 4,978 71,972 33,950 33,950 33,950 33,950 - Training 48,300 35,736 13,564 49,300 8,130 41,170 49,300 49,300 49,300 49,300 - Contractual 1,217,418 850,184 367,234 841,062 176,194 664,868 1,033,216 1,033,216 1,033,216 1,033,216 - Supplies &Materials 229,358 413,151 116,207 183,345 77,130 106,216 204,345 204,345 204,345 204,345 - Other Costs 381,744 298,031 83,713 387,818 33,410 354,408 69,818 69,818 69,818 69,818 - Equipment,Furniture and Machinery 11,500 9,553 1,947 7,000 3,091 3,909 7,000 7,000 7,000 7,000 - Maintenance Projects ----795 (795)----- Administrative Costs 1,126,761 1,144,749 (17,988)1,158,098 418,402 739,696 1,233,537 1,233,537 1,233,537 4,233,537 - 5,154,110 4,011,785 1,142,326 4,593,387 1,380,513 3,212,874 4,531,908 3,614,369 3,804,265 4,787,468 255,560 FERC 535 -Operation Supervision &Engineering Operations Sup/Eng Bradley Lake Operating Labor &Benefits 299,649 266,820 32,829 265,587 114,153 181,434 270,953 135,477 §3,597 189,074 (81,879) IDCR 155%-::-----77,849 77,849 77,849 Travel 10,450 9,452 998 10,450 347 10,103 40,450 10,450 10,450 10,450 - Training 9,300 11,171 (1,871)9,300 41,941 7,389 9,300 9,300 9,300 9,300 - Contractual 1,400 300 1,100 1,000 -1,000 4,000 1,000 1,000 1,000 - Supplies &Materials 4,100 §,781 (1,681)4,000 367 3,633 4,000 4,000 4,000 4,000 - Bradley Lake Operating Total 324,899 293,523 31,376 290,337 116.778 173,559 295,703 160,227 166,196 291,673 (4.030) FERC 535 -Operation Supervision &Engineering Total 324,899 293,523 31,376 290,337 116,778 173,559 295,703 [HEA 160,227 JHEA 156,196 [HEA 291,673 {HEA (4,030) FERC 537 -Hydraulic Expenses Hydraulic Expenses Bradiey Lake Operating Labor &Benefits 92,746 65,670 27,076 94,453 28,821 65,632 98,853 49,426 39,289 88,714 (10,139) IDCR 155%*--:-:-+41,516 41,515 41,515 Contractual 4,000 §,647 (1,647)2,000 -2,000 2,000 2,000 2,000 2,000 - Supplies &Materials 2,900 886 2,014 2,000 352 1,648 2,000 2,000 2,000 2,000 - Bradley Lake Operating Total 99,646 72.202 27,444 98,453 23,173 69,280 102,853 53,426 84,804 134,230 31,377 FERC 537 -Hydraulic Expenses Total 99,646 72,202 27,444 98,453 29,173 69,280 102,853 [HEA 53,426 [HEA 84,804 [HEA 134,230 JHEA 31,377 10/15/20183:44 PMV3-2019-BradleyBudget-DRAFTAmend2-101818,xIsxSch B Page 6 of 17 ---FY17 FY18 Fy19 Fv1i9 FY17 FYi8 FY19 Increase Amended (Over)Under Approved Actual @ (Over)Under Approved OLD NEW FY19--DRAFT|(Decrease) Budget Actual Budget to date Budget 11/30/17 |Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original FERC 538 -Electric Expenses Electric Expenses Bradley Lake Operating Labor &Benefits 242,940 193,058 49,882 232,294 85,570 146,724 240,998 120,499 104,312 224,811 (16,187) IDCR 155%------:-102,222 102,222 102,222 Travet 7,000 8,638 (1,638)7,000 2,930 4,070 7,000 7,000 7,000 7,000 - Training 25,000 23,737 1,263 25,000 -25,000 25,000 25,000 25,000 25,000 - Contractual 2,000 1,400 600 2,000 1,400 600 2,000 2,000 2,000 2,000 - Supplies &Materials 8,500 4,672 3.828 9,732 -9,732 9,732 9,732 9,732 9,732 - Bradley Lake Operating Total 285.440 231,505 53,934 276,026 89.900 186,126 284,730 164,231 250,266 370,765 86,035 FERC 538 -Electric Expenses Total 285,440 231,505 53,934 276,026 89,500 186,126 284,730 JHEA 164,231 JHEA 250,266 JHEA 370,765 JHEA 86,035 FERC 539 -Misc.Hydraulic Power Generation Expenses Misc Hydro Power Exp Bradley Lake Operating Labor &Benefits 178,991 137,740 41,251 179,530 66,934 112,596 216,960 408,478 59,567 168,044 (48,916) IDCR 155%-ba --:--:41,515 41,515 41,515 Training 15,000 829 14,171 15,000 6,219 8,781 16,000 15,000 15,000 15,000 - Contractual 297,048 214,899 82,149 287,525 68,505 219,020 287,525 287,525 287,525 287,525 - Supplies &Materials 17,900 19,695 (1,795)17,900 5,466 12,434 17,900 17,900 17,900 17,900 * Bradley Lake Operating Total 508 939 373,163 135,777 499,955 147,124 352.831 537,385 [HEA 428,903 [HEA 421,507 [HEA §29,985 [HEA {7 400) BRADLEY CIRCUITS/RAOIO TO BERNICE LK Other Costs 35,695 35,696 (1)35,695 14,873 20,822 35,695 35,695 35,696 35,695 - BRADLEY CIRCUITS/RADIO TO BERNICE LK Total 35,695 35,696 (1)35,695 14,873 20,822 35,695 JHEA 35.695 HEA 36,695 [HEA 35,695 [HEA - BRADLEY CIRCUITS BERNICE LK TO ANCH Other Costs 293,773 29,540 233 29,773 12,334 17,439 29,773 29,773 29,773 29,773 - BRADLEY CIRCUITS BERNICE LK TO ANCH Total 29,773 29,540 233 23,773 12,334 17,439 29,773 JICEA 29,773 JCEA 29,773 JCEA 29,773 JCEA - FERC $39 -Mise.Hydraulic Power Generation Expenses Total 574,407 438,398 136,009 565,423 174,332 391,091 602,853 494,371 486,975 595,453 (7,400) FERC 540 -Rents FERC Land Use Fee Bradiey Lake Operating Other Costs 312,176 230,614 81,562 318,000 -318,000 ----- Bradley Lake Operating Total 312,176 230.614 81,562 318.000 -318,000 ----- FERC 540 -Rents Total 312,176 230,614 81,562 318,000 *318,000 -AEA - JAEA -AEA -AEA - 10/15/20183:44 PMV3-2019-BradleyBudget-DRAFTAmend2-101818.xIsxSch B Page 7 of 17 FY17 Fy18 FY19 Fy19 FY17 FY18 FY19 Increase Amended (Over)Under Approved Actual @ {Over)Under Approved OLD NEW FY19 "DRAFT (Decrease) Budget Actual Budget to date Budget 11/30/17 |}Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original FERC 541 -Maintenance Supervision &Engineering Maint Supervision/Eng Bradley Lake Operating Labor &Benefits 224,284 229,602 (5,318)272,586 114,811 187,775 277 696 138,849 56,968 195,817 (81,879) IDCR 155%-:----bd -77,849 77 849 77,849 Bradley Lake Operating Total 224,284 229.602 (5.318)272,586 114.811 157,775 277 696 138,849 134,817 273,666 (4.030) FERC 541 -Maintenance Supervision &Engineering Total 224,284 229,602 (5,318)272,586 114,811 157,775 277,696 JHEA 138,849 JHEA 134,817 JHEA 273,666 JHEA (4,030) FERC 542 -Maintenance of Structures Maintenance of Structures Bradley Lake Operating Labor &Benefits 92,746 65,629 27,117 94,453 28,848 65,605 98,853 49,426 36,012 85,438 (13,415) IDCR 155%-ba ::-ba --37,066 37,066 37,066 Contractual 10,000 -10,000 10,000 -10,000 10,000 10,000 10,000 710,000 - Supplies &Materials 53,713 42,233 11,480 53,713 26,696 27,017 §3,713 53,713 §3,713 53,713 - Equipment,Furniture and Machinery 11,500 8,318 3,182 7,000 3,091 3,909 7,000 7,000 7,000 7,000 - Maintenance Projects :--:-°----- Bradley Lake Operating Total 167,959 116,180 §1,779 165,166 58.635 106,531 169,566 120,139 143,791 193,217 23.651 BRADLEY UPGRADE CREWS QUARTERS/RESIDENCE KITCHEN Contractual ------165,000 165,000 465,000 165,000 - BRADLEY UPGRADE CREWS QUARTERS/RESIDENCE KITCHEN Total *---:-165,000 165,000 165,000 165,000 - FERC 542 -Maintenance of Structures Total 167,959 116,180 $1,779 165,166 58,635 106,531 334,566 JHEA 285,139 JHEA 308,791 JHEA 358,217 [HEA 23,651 FERC 543 -Maintenance of Reservoirs,Dams &Waterways Maint Res,Dams,WWays Bradley Lake Operating Labor &Benefits §0,409 60,035 374 §0,610 1,471 49,139 53,091 26,545 19,008 45,552 (7,539) IDCR 155%ba ----:-:19,932 19,932 19,932 Contractual 5,200 63,704 (58,504)6,500 -6,500 6,500 6,500 6,500 6,500 - Bradley Lake Operating Total 55.609 113,739 {58,130)57,110 1,471 §5,639 §9,591 33,045 45.439 71,984 12,393 BRADLEY NUKA REPAIR Contractual 15,000 980 14,020 18,000 -15,000 15,000 15,000 45,000 15,000 - Equipment,Furniture and Machinery --:-------- BRADLEY NUKA REPAIR Total 16,000 980 14,020 16,000 -15,000 15,000 15,000 46,000 16,000 - BRADLEY POWER TUNNEL MAINT (Dam) Contractual 15,000 9,431 §,569 15,000 :15,000 1§,000 15,000 15,000 15,000 - BRADLEY POWER TUNNEL MAINT (Dam)Total 15,000 9.431 5.569 15,000 -15,000 15,000 46,000 15,000 15,000 - BRADLEY POWER TUNNEL DRAIN CLN/INSP (P/House) Maintenance Projects ---bd ::----- BRADLEY POWER TUNNEL DRAIN CLN/INSP (P/House)Total :---------- FERC 543 -Maintenance of Reservoirs,Dams &Waterways Total 85,609 124,151 (38,542)87,110 1,471 85,639 89,591 [HEA 63,045 JHEA 75,439 [HEA 101,984 JHEA 12,393 10/15/20183:44 PMV3-2019-BradleyBudget-DRAF TAmend2-101818.xIsxSch B Page 8 of 17 10/15/20183:44 PMV3-2019-BradleyBudget-DRAF TAmend2-101818.xlsxSch B FY17 FY18 Fy19 FY19 FY17 FY18 FY19 Increase Amended {Over)Under Approved Actual @ (Over)Under Approved OLD NEW FY19 =DRAFT](Decrease) Budget Actuat Budget to date Budget 11/30/17 |Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original FERC 544 -Maintenance of Electric Plant Maintenance of Elec Plant Bradley Lake Operating Labor &Benefits 370,983 266,161 104,822 379,102 116,720 262,382 397,141 198,568 143,697 342,265 (54,876) IDCR 155%--bd °--hd ba 148,789 148,789 148,789 Travel 4,500 740 3,760 4,500 -4,500 4,500 4,500 4,500 4,500 - Contractual 79,000 36,844 42,156 70,000 49,363 50,637 70,000 70,000 70,000 70,000 - Supplies &Materials 27,245 13,081 14,164 20,000 1,476 18,524 20,000 20,000 20,000 20,000 - Maintenance Projects --*-------- Bradley Lake Operating Total 481,728 316,826 164,902 473,602 137,559 336,043 491,641 293,068 386,986 585,554 93,913 BRADLEY HIGH BAY LIGHTS Supplies &Materials ------30,000 30,000 30,000 30,000 - BRADLEY HIGH BAY LIGHTS Total ---:-:30,000 30,000 30,000 30,000 - FERC 544 -Maintenance of Electric Plant Total 481,728 316,826 164,902 473,602 137,559 336,043 521,641 JHEA 323,068 JHEA 416,986 [HEA 615,554 [HEA 93,913 FERC 545 -Maintenance of Misc.Hydraulic Plant Maint of Misc Hydr Piant Bradley Lake Operating Labor &8enefits 92,746 66,129 26,617 94,453 23,149 65,304 98,853 49,426 36,012 85,438 {13,415} IDCR 155%:-:-::::37,066 37,066 37,066 Contractual 3,900 5,274 (1,374)3,900 -3,900 3,900 3,900 3,900 3,900 - Supplies &Materials 43,000 20,631 22,369 35,000 41,000 (6,000)35,000 35,000 35,000 35,000 - Bradley Lake Operating Total 139,646 92,034 47,612 133,353 70.149 63.204 137,753 88,326 111,978 161,404 23,651 BRADLEY FISH WATER DSGN/MIDDLE FORK SHACK IMPR Contractual 20,000 -20,000 -1,345 (1,345)----- BRADLEY FISH WATER DSGN/MIDDLE FORK SHACK IMPR Total 20,000 -20.000 -1,345 (1,345)----- FERC S45 -Maintenance of Misc.Hydraulic Plant Total 159,646 92,034 67,612 133,353 71,494 61,859 137,753 [HEA 88,326 JHEA 111,978 JHEA 161,404 JHEA 23,651 FERC 556 -System Control &Load Dispatching System Cntl &Load Disp Bradley Lake Operating Labor &Benefits 49,502 27,294 22,207 20,618 7,176 13,442 21,506 10,753 10,754 21,507 41 {DCR 155%------:-ba -- Contractual 60,500 66,135 (8,635)§3,000 5,437 47,563 §3,000 §3,000 §3,000 53,000 - Supplies &Materials 6,000 2,229 3,771 6,000 -6,000 6,000 6,000 6,000 6,000 - Bradley Lake Operating Total 116,002 95,657 20,344 79,618 12,613 67,005 80,506 [HEA 69,753 [HEA 69,754 [HEA 80,507 JHEA 1 BRADLEY EMERSON ANTIVIRUS UPGRADE Contractual ::----40,000 40,000 40,000 40,000 - BRADLEY EMERSON ANTIVIRUS UPGRADE Total --°---40,000 JHEA 40,000 [HEA 40,000 JHEA 40,000 JHEA - BRADLEY POWERHOUSE PC'S Contractual --------:-- BRADLEY POWERHOUSE PC'S Total .---:.-HEA -HEA -HEA -HEA - Page 9 of 17 Fv17 FY18 Fyi9 Fy19 FY17 FY18 FY19 Increase Amended (Over)Under Approved Actual @ (Over)Under Approved OLD NEW FY19 DRAFT (Decrease} Budget Actual Budget to date Budget 11/30/17 |Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original Snow Measurement Bradley Lake Operating Contractual 10,000 10,000 -10,000 10,000 -12,000 JAEA 12,000 [AEA 12,000 JAEA 12,000 [AEA - Bradley Lake Operating Total 10,000 10,000 -10,000 10,000 -12,000 12,000 12.000 12,000 * Seismic Service Bradley Lake Operating Contractual 60,370 61,358 (988)!62,000 16,778 45,222 62,000 [AEA 62,000 [AEA 62,000 JAEA 62,000 [AEA - Bradiey Lake Operating Total 60,370 61,358 (988)62,000 16,778 45,222 62,000 62,000 62,000 62,000 - Streamguaging Serv Bradley Lake Operating Contractual 310,000 187,164 152,836 213,137 53,284 169,853 206,291 JAEA 206,291 [AEA 206,291 [AEA 206,291 JAEA - Bradley Lake Operating Total 310,000 157,164 162,836 213,137 §3,284 189,853 206,291 206,291 206,291 206,291 - Permits Bradiey Lake Operating Other Costs 100 450 (350)350 -350 350 [AEA 350 JAEA 350 [AEA 350 JAEA - Bradley Lake Operating Totat 100 450 (350)350 -350 350 350 350 350 - FERC 556 -System Control &Load Dispatching Total 496,472 324,629 171,842 365,105 92,675 272,430 401,147 390,394 390,395 401,148 1 FERC 562 -Station Expenses Station Expenses SVC/Substation Maintenance Contract Labor &Benefits 130,414 151,868 (21,455)123,726 64,731 58,995 65,675 ICEA 65,675 [CEA -[CEA 65,675 [CEA - Labor &Benefits :---29,043 JHEA 14,522 [HEA 14,522 THEA 29,043 JHEA - Travel 6,000 -6,000 6,000 1,701 4,299 2,000 JCEA 2,000 JCEA 2,000 JCEA 2,000 JCEA - Contractual 4,000 3,447 554 4,000 -4,000 2,000 ICEA 2,000 CEA 2,000 ICEA 2,000 [CEA - Contractual -::°--30,000 {HEA 30,000 JHEA 30,000 HEA 30,000 [HEA - Supplies &Materials 16,000 3,848 12,452 16,000 1,773 14,227 11,000 [CEA 11,000 [CEA 14,000 FCEA 11,000 [CEA - Supplies &Materials ------40,000 HEA 10,000 {HEA 10,000 [HEA 10,000 [HEA - Other Costs 4,000 1,148 2.852 4,000 6,202 (2,202)4,000 [CEA 4,000 ICEA 4,000 JCEA 4,000 JCEA - Maintenance Projects ----795 (795)-CEA -CEA -CEA -CEA - SVvC/Sub i fit ie ct Total 160.414 160,311 103 463,726 75.202 78.524 153,718 139,197 73,522 163,718 - FERC 562 -Station Expenses Total 160,414 160,311 103 153,726 75,202 78,524 153,718 139,197 73,522 153,718 - 10/15/20183:44 PMV3-2019-BradleyBudget-DRAF TAmend2-101818.xIsxSch B Page 10 of 17 10/15/20183:44 PMV3-2019-BradieyBudget-DRAFTAmend2-101818.xIsxSch B FYvi7 FY1i8 FY19 FY19 FY17 FY18 FY19 Increase Amended {Over)Under Approved Actual @ {Over)Under Approved OLD NEW FY19 DRAFT,(Decrease) Budget Actual Budget to date Budget 11/30/17 _}Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original FERC 571 -Maintenance of Overhead Lines Maint of OH Lines Bradley Lake Operating Labor&Benefits 179,671 7,014 172,657 82,402 -82,402 31,120 15,560 15,560 31,120 - Travel 95,000 8.179 86,821 49,000 -49,000 10,000 10,000 10,000 10,000 - Contractual 50,000 -50,000 86,000 -86,000 §0,000 50,000 50,000 50,000 - Supplies &Materials 50,000 95 49,905 19,000 -19,000 §,000 5,000 5,000 5,000 - Other Costs :584 (584)-------- Bradley Lake Operating Total 374.671 16,872 358,799 236,402 -236.402 96,120 80,560 80,560 96,120 - BRADLEY JUNCTION SWITCH REMOVAL Travel 5,000 -5,000 :------- Contractual 70,000 73,076 {3,076):------- Other Costs ----------. BRADLEY JUNCTION SWITCH REMOVAL Total 75,000 73,076 1,924 -------- MARKER BALL REPLACEMENT Labor &Benefits :6,352 (6,352)-------- Travel 5,000 -§.000 -------- Contractual 200,000 140,526 §9,474 -83 (83)----- Equipment,Furniture and Machinery :41,235 (1,235)-------- MARKER BALL REPLACEMENT Total 205,000 148,413 56,887 -83 (83).---- FERC 571 -Maintenance of Overhead Lines Total 654,671 237,061 417,610 236,402 83 236,319 96,120 THEA 80,560 [HEA 80,560 JHEA 96,120 [HEA - FERC 920 &930 -Administrative Expense AEA Bradley Fixed Admin Fees Bradley Lake Operating Administrative Costs 200,000 200,000 -200,000 83,333 116,667 200,000 JAEA 200,000 JAEA 200,000 JAEA 200,000 JAEA - Bradiey Lake Operating Total 200,000 200,000 -200,000 83.333 116.667 200,000 200,000 200,000 200,000 - Operating Committee Exp-Audit Bradley Lake Operating Administrative Costs 16,494 16,500 (6)16,800 -16,800 16,500 JAEA 16,500 JAEA 16,500 JAEA 16,500 JAEA - Bradley Lake Operating Total 16,494 16,500 (6)16,800 -16,800 46,500 16,500 16,500 16,500 - Operating Committee Exp-Legal Bradley Lake Operating Administrative Costs 25,000 57,444 (32,444)25,000 40,499 (15,499)25,000 [AEA 25,000 JAEA 25,000 JAEA 25,000 JAEA - Bradley Lake Operating Total 25,000 57,444 (32,444)25,000 40,499 (15.499)25,000 25,000 25,000 25,000 - Page11of17 FY17 Fy18 Fy19 FY1s FY17 FY18 FY19 increase Amended (Over)Under Approved Actual @ {Over}Under Approved OLD NEW FY19 DRAFT (Decrease) Budget Actual Budget to date Budget 11/30/17 |Budget to date Budget CONTRACT CONTRACT AMEND 2 from Original Operat Committee Exp-Arbitrage Bradley Lake Operating Administrative Costs 3,630 3,630 -3,380 -3,380 2,935 JAEA 2,935 JAEA 2,935 JAEA 2,935 [AEA ° Bradley Lake Operating Total 3,630 3.630 -3,380 -3.380 2,935 2,935 2,935 2,935 - Trust &Account Fees Bradley Lake Operating Administrative Costs 12,000 11,918 82 11,918 §,959 §,959 11,918 JAEA 11,918 [AEA 11,918 JAEA 11,918 JAEA - Bradley Lake Operating Total 12,000 11,918 82 11,918 5,959 5,959 411,918 11,918 11,918 11,918 - Mise Admin Bradley Lake Operating Administrative Costs -10,000 (10,000)10,000 -10,000 10,350 [AEA 10,350 [AEA 40,350 JAEA 10,350 [AEA - Bradley Lake Operating Total -10,000 (10,000)10,000 -10,000 10,350 10,350 10,350 10,350 - FERC 920 &930 -Administrative Expense Total 257,124 299,492 (42,368)267,098 129,791 137,307 266,703 266,703 266,703 266,703 " FERC 924 &925 -Insurance Premiums insurance Premiums Bradley Lake Operating Administrative Costs §00,000 §02,391 (2.391)525,000 236.957 288,043 600,834 JAEA 600,834 JAEA 600,834 [AEA 600,834 [AEA - Administrative Costs 64,637 §2,279 12,358 56,000 20,718 35,282 56,000 [HEA 56,000 [HEA 56,000 [HEA 56,000 [HEA - Bradley Lake Operating Total 564.637 554,670 9.967 581,000 257,675 323,325 656,834 656,834 656,834 656,834 - Risk Management Bradley Lake Operating Administrative Costs ------= JCEA -_4CEA - |CEA +CEA - Bradiey Lake Operating Total ----------- FERC 924 &925 -insurance Premiums Total 564,637 554,670 9,967 581,000 257,675 323,325 656,834 656,834 656,834 656,834 - FERC 928 -Regul:¥Cc ission Exp FERC Admin Fees Administrative Costs 180,000 122,210 §7,791 185,000 -185,000 185,000 JAEA 185,000 JAEA 185,000 JAEA 185,000 JAEA - Bradley Lake Operating Total 180,000 122,210 57,791 185,000 -185,000 185,000 185,000 485,000 185,000 - FERC Related Prof Services FERC Part 12 Inspection Administrative Costs 25,000 24,113 887 ---JAEA -JAEA >JAEA -JAEA - Contractual Engineer-FERC license issues Administrative Costs 100,000 144,264 (44,264)!125,000 30,936 94,064 125,000 JAEA 125,600 JAEA 125,000 JAEA 125,000 JAEA - Bradley Lake Operating Total 125.000 168,377 (43,377)125,000 30.936 94,064 125,000 125,000 125,000 125,000 - FERC 928 -Regul:y Ci jission Exp Total 305,000 290,586 14,414 310,000 30,936 279,064 310,000 310,000 310,000 310,000 - Total Bradley Lake Budget §,154,110 4,011,785 1,142,326 4,593,387 1,380,513 3,212,874 4,531,908 3,614,369 3,804,265 4,787,468 255,560 10/15/20183:44 PMV3-2019-BradleyBudget-DRAFTAmend2-101818,xIsxSch B Page 12 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Monthly Utility Contributions Schedule C Power Purchaser Chugach Electric Municipality of Anchorage Homer Electric Matanuska Electric Golden Valley Electric City of Seward Rounding Power Purchaser Chugach Electric Municipality of Anchorage Homer Electric Matanuska Electric Golden Valley Electric City of Seward proposed changes made by Amend 2 highlighted FY2017 FY2018 FY2019 "FY2019 FY2019 FY2019 Change between Percent Amended Amended Original Amended 7/20/18 Proposed Proposed FY2018 to Share Budget Budget Budget Budget Change Amendment 2 amended FY2019 30.4%5,941,176 6,025,086 §,623,032 5,690,052 88,152 5,778,204 (246,882) 25.9%5,061,732 5,133,216 4,790,676 4,847,784 75,084 4,922,868 (210,348) 12.0%2,345,208 2,378,322 2,219,616 2,246,076 34,788 2,280,864 (97,458) 13.8%2,696,988 2,735,076 2,552,556 2,582,988 40,008 2,622,996 (112,080) 16.9%3,302,832 3,349,470 3,125,964 3,163,224 48,996 3,212,220 (137,250) 1.0%195,432 198,192 184,968 187,176 2,892 190,068 (8,124) 3 (2)1 (2)(1) 100.0%19,543,371 19,819,362 18,496,810 18,717,301 289,918 19,007,219 (812,142) FY2018 FY2019 FY2019 Percent FY2017 Monthly FY2019 FY2019 Amend 2 Proposed Amend 2 Share Monthly Accelerated Monthly Monthly Change Monthly 30.4%495,098 1,004,181 468,586 474,171 7,346 481,517 (522,664) 25.9%421,811 855,536 399,223 403,982 6,257 410,239 (445,297) 12.0%195,434 396,387 184,968 187,173 2,899 190,072 (206,315) 13.8%224,749 455,846 212,713 215,249 3,334 218,583 (237,263) 16.9%275,236 558,245 260,497 263,602 4,083 267,685 (290,560) 1.0%16,286 33,032 15,414 15,598 241 15,839 (17,193) 100.0%1,628,614 3,303,227 1,541,401 1,559,775 24,160 1,583,935 (1,719,292) 10/15/20183:44 PMV3-2019-BradleyBudget-DRAFTAmend2-101818.xlsxSch C Page 13 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT R&C Fund OI and Schedule D 'Actual 'Actual 'Actual PROJECTED |PROJECTEDPROJECTED|PROJECTED PROJECTEDTOREPAYTOREPAYTOREPAYTOREPAY Oescription Oisburse a 08/30/18 Disburse at 06/30/17 Disburse at 06/30/18 Disburse at 08/30/19 IR&C FUND PROJECTS Governor 0.00 4,052,070.14 0,00 4,052,070.14 0,00 4,052,070.14 0.00 4,052,070.14 Replace RFLS 9,00 251,092.69 0.00 251,092 69 0.00 251,092.68 0.00 251,092.69 Replace Runners 0.00 1,946,732.79 0.00 1,946,732.79 0.00 1,946,732.79 0.00 1,946,732.79 Reptace cable from dam to power house 0.00 2,321.922.94 0.00 2,321,922.94 0.00 2.321,922.94 0.00 2,321,922.94 Replace power system stab#izer 0.00 619,205.10 9.00 619,205.10 0,00 619,205.10 0.00 619,205.10 Replace two RTUs 0,00 86,905.27 0.00 86,905.27 0.00 86,905.27 6.00 86.905,27 Culvert Repairs 0.00 675,966.79 0.00 675,966.79 0.00 675,966.79 0.00 675,966.79 Trans Towers Frost Jacking Repairs.0.00 887,596.62 0.00 887,596.62 0.00 887,696.62 0.00 887,596.62 Replace Plant and SCADA Controls 0.00 1,344,683.05 0.00 4,344,683,05 0.00 1,344,683.05 0.00 1,344,683.05 Vibration Monitoring System 0,00 490.00 0.00 490.00 90.00 490.00 0.00 490.00 Battle Creek Feasibility 0.00 0.00 0,00 0.00 0.00 0.00 0.00 0.00 Fire Alarm System Replacement 0.00 0.00 0.00 0.00 100,000.00 100,000.00 250,000.00 350,000.00 Battle Creek Diversion 149,683.91 1,144,017.74 25,982.26 1,170,000.00 0.00 1,170,000.00 0.00 1,170,000.00 [Replace Electro-Mechanical Relays 0.00 1,277,197.06 0.00 1,277,197.06 0.00 41,277,197.06 0.00 1,277,197.06 Fighwater Screen Debris Removal 290,306.98 312,236.43 0.00 312,236.43 0.00 912,236.43 0.00 312,236.43 Turbine Nozzle Repair 1,320,234.57 1,416,658.06 12,203.01 1,428,861.07 9.00 1,428,861.07 0,00 1,428,861.07 Raise 0,00 0,00 0.00 0.00 0.00 0.00 0.00 0.00 ISVC replacement Daves Creek|Sokiotna 4,570,577.34 1,570,577.34 |5,606,007.81 7,176,585.15 |1,391,899.49 8,568,484.64 0.00 8,568.484.64 Equipment Storage Shed 0.00 0.00 0.00 0.00 0.00 0.00 500,000.00 500,000.00 Emerson Operating System Upgrade 0.00 0,00 0.00 0.00 0.00 0.00 700,000.00 700,000.00 3.330.802.80 47,907,352.02 5.644,193.98 23.551,545.10 1,491,899.49 25.043 444.59 1,450,000.00 26,493,44459CurrertYearR&C Repayment (3.46 1,591.16)(3,262,788.00)|(2,793,306.63}](2,746,067.65, Adjust bal to $5 mil (won't be corrected until year end}0.00 0.00 0.00 9.00 Less Interest im Fund Applied to Repayment (287,080.93)(361,780.54)0.00 0.00 Net Transfer from Revenue Fund (3,748,672.09 (3.624,568.54)}2,793,306.63 2,746,067.65 Cumulative Prior Years R&C Repayments (12,716,539.31)}(15,409,249.92)(17,886,155.08 }(20,527,878.92) Due back to Utilities 1,055,961.48 1,147,663.37 151,582.78 0,00 R&C Cumulative interest (Retained}Applied As Part of Repayment 0.00 0.00 0.00 9.00 Net R&C Repayments (11,660,577.83)(14,261,586.54)]{17,734.572.29){20,527 878,92) INET DUE TO R&C FUND 2,498,102.10 5,665,390.02 4,515,565.67 3.219.498.02 R&C FUND CASH FLOW PROJECTION Beginning Investment Batance 3,212,607.32 §.623,509.49 3,219,624,39 786,511.13 Disbursements-current year (1,265,152.32)(2,906,842.05)|(1,341,405.49)(1,350,000.00: Digbursements-prior year accrued (22,899.86)(2,065,650.48}}{2,737,381.03)|(100,000.00 R&C Repayment to utilities (20,211.52){1,055,961.11)}(14,147,663,37'(202,076.79}} Net other cash inflow outfiow)(29,506,22)0.00 0.00 0,00 Current year interest earnings 287,080.93 361,780.54 0.00 0.00 Current year Participants Contributions to R&C 3.461,591.16 3.262,788.00 2.793,306.63 2.746.067.65 Ending Investment Balance 5.623.509.49 3.219.624.39 786,511.43 1,880.501.98 Accrued R&C Payable at year end-Due to Utilities (1,055,961.11)(1,147,663,37)|(202,076.79)0.00 Accrued R&C vendor Payable at year end (2,065.650.48)(2,737,351.03)}100,000.00:{160,000.00} PROJECTED NET DUE +ENDING INVESTMENT BALANCE 5.000 000.00 5,000.000.00 5,000,000.00 5,000.000.00 total repaid remaining to REPAYMENT AMOUNT wt 6R019 pay at 7/1/19 FY19 FY20 Fy21 I$1,401,948.53 X 25%all 4 years 4th yr 350,487.13 1,401 948.53 2 ° $1,834.499.92 X 25%yr 4 |25%yr 2|50%yr 3 [final yr 917,249.96 1,834,499.92 2 = I$789,697.09 X 25%yr 1]75%yr 2 inal yt $92,272.82 789,697.09 °- 1$3.330,802.80 X 25%yr 1 |32%yr 2 §25%yr 3]'i tst yr 832,700.70 J2nd yr 1,065,856.90 [3rd yr 832,700.70 [4th yr 599,544.50 3,330,802.80 -. $5,644,193,08 x 25%all 4 years 'Ast yr 1,411,048.27 [2nd yr 4,411,048.27 Tard yr 1,411,048.27 4,233,144.81 {1,411,048.27) 1,411,048.27 2 i$1.491,899.48 x 25%aft 4 years 'ist yr 372,974.87 J2nd yr 372,974.87 745,949.75 (745,949.75)372,974,87 372,974.87 © 1$1,350,000 x 25%all 4 years Ast yr 362,500.00 362,500.00 (1,087,500.00)362,500.00 362,500.00 362,500.00 - 269271061 2.476 905.17 2.616.723.84 |2,746 067.65 (3.244,498.02)_2.146.523.14 735.474 87 362,500.00 0.00 *FY 18 projects reflect budgeted and actual numbers for different projects depending on which is higher (budgeted or actual),so the R&C repayment amount reflects a conservative amount 10/15/20183:44 PMV3-2019-BradleyBudget-DRAF TAmend2-101818.xdsx Sch D Page 14 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Battle Creek Capital Construction Purchases Schedule E Total capital revenue fund purchases 10/15/20183:44 PMV3-2019-BradleyBudget-DRAFTAmend2-101818.xisxSch E FY17 FY18 FY18 FY19 Original Amended Approved Capital Construction Project Description Actuals Budget Budget 03/05/18 Budget Comments Battle Creek Diversion 798,072 400.000} Total Construction 798,072 400,000 - Used 2007 Chevrolet Silverado :8,800 - Used 2006 Chevrolet Silverado -7,700 - -16,500 - Page 15 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Battle Creek Administrative Costs Budget Schedule F HEA -HEA 262,438 CEA -CEA - AEA 43,000 AEA 191,550 FY18 FY19 FY18 (Over)increase Amended Under FY19 Amend (Decrease) Budget Actual Budget 1 Budget from PY Ss y by cost type - Administrative Costs 43,000 -43,000 453,988 410,988 43,000 -43,000 453,988 410,988 FERC 920,923,&930 -Administrative Expense Battle Creek Admin Fees Administrative Costs ---8,193 JHEA 8,193 Administrative Costs 22,000 -22,000 168,000 [AEA 146,000 Battle Creek Admin Fees Total 22,000 -22.000 176,193 154,193 Operating Committee Exp-Owners Representative Administrative Costs ---254,245 HEA 254,245 Operating Committee Exp-Owners Representative Total ---254,245 254,245 Operating Committee Exp-Other Administrative Costs 500 -500 - JAEA (500) Operating Committee Exp-Other Total 500 *500 -(500) Operating Committee Exp-Legal Administrative Costs 15,000 -15,000 15,000 JAEA - Operating Committee Exp-Legal Total 15,000 -15,000 15,000 - Operat Committee Exp-Arbitrage Administrative Costs 2,000 -2,000 2,000 JAEA - Operat Committee Exp-Arbitrage Total 2,000 -2,000 2,000 - Trust &Account Fees Administrative Costs 3,500 -3,500 6,550 [AEA 3,050 Trust &Account Fees Total 3,500 -3,500 6,550 3,050 FERC 920,923,&930 -Administrative Expense Total 43,000 -43,000 453,988 410,988 Total Bradley Lake Budget 43,000 -43,000 453,988 410,988 10/15/20183:44 PMV3-2019-BradleyBudget-DRAF TAmend2-101818.xdsxSch F Page 16 of 17 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Battle Creek Monthly Participating Purchaser Contributions Schedule G POWER PURCHASER Chugach Electric Association Municipal Light &Power Homer Electric Association Matanuska Electric Association Golden Valley Electric Association City of Seward Rounding POWER PURCHASER Chugach Electric Association Municipal Light &Power Homer Electric Association Matanuska Electric Association Golden Valley Electric Association City of Seward *(1)The calculation the FY2018 2/2/2018 Amended Budget is shown below. FY2018 FY2018 FY2018 .; FY2017 7/28/2017 2/2/2018 3/5/2018 FY2019 Percent Amended Amended Amended Amend 3 Approved Share Budget Budget Budget *(1)Budget Budget 39.38%315,040 157,520 236,521 301,379 899,660 0.00%--.-- 41.44%331,520 165,760 116,938 185,189 946,721 17.88%143,040 71,520 107,389 136,837 408,479 0.00%----- 1.30%10,400 5,200 7,808 9,949 29,699 1 1 1 100.00%800,000 400,000 468,657 633,356 2,284,560 FY2018 FY2018 Percent March April -June FY2019 Share Monthly Monthly Monthly 39.38%:-59,130 80,749 74,972 0.00%----- 41.44%--29,235 51,985 78,893 17.88%--26,847 36,663 34,040 0.00%-.--- 1.30%.-1,952 2,666 2,475 100.0%E E 117,164 172,064 190,380 rr Original ”Corrected}Contributions FY2018 :Capital Capital Other Prior to 2/2/2018 :Reserve Reserve Available Other Amended i.Contributions __ContributionsJ Eunds Available Funds Budget 1,246,143 1,101,213 144,930 381,451 236,521 1,443,286 1,158,819 284,467 401,405 116,938 565,796 499,992 65,804 173,193 107,389 41,137 36,353 4,784 12,592 7,808 (1)4 3,296,363 2,796,378 499,985 968,640 468,657 10/15/20183:44 PMV3-2019-BradleyBudget-DRAF TAmend2-101818.xisxSch G Page 17 of 17 Bradley Lake Project Management Committee -Alaska Online Public Notices Page 1 of 1 oo 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 teleconference meeting on Thursday,October 25,2018 at 11:00 a.m. To participate in the meeting dial 1-888-585-9008,Enter Code 467-050-126#. For additional information contact Teri Webster at 907-771-3074. This meeting will be conducted by electronic media pursuant to AS 44.62.310.The public is invited to attend. The State of Alaska (AEA)complies with Title lf 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 Details None D peer Commerce,Community andepartment.Economic Development Revision History Category:.Public Notices Created 10/12/2018 12:07:33 PM by pub Category:statewidetawebsterOcatlon(s): Modified 10/12/2018 12:12:52 PM by [Details]Project/Regulation #: tawebster Modified 10/17/2018 12:53:47 PM by [Details]Publish Date:10/12/2018 tawebster etal's Archive Date:10/25/2018 Modified 10/17/2018 12:54:06 PM by : tawebster [Details]Events/Deadlines: https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=191761 10/17/2018 10. 11. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) REGULAR MEETING Thursday,Oct.25,2018 11:00 A.M. Alaska Energy Authority TELECONFERENCE MEETING 1-888-385-9008 -Conference room code 467-050-126 AGENDA CALL TO ORDER ROLL CALL FOR COMMITTEE MEMBERS PUBLIC ROLL CALL PUBLIC COMMENTS AGENDA APPROVAL PRIOR MINUTES --Sept.21,2018 NEW BUSINESS A.Bradley O&M Agreement Resolution 2018-03 to extend O&M agreement Second Amendment to the O&M agreement B.Budget Amendment Approval Ron Woolf Memo Proposed Version 1 Proposed Version 2 Proposed Version 3 COMMITTEE ASSIGNMENTS (Zeyeo onof trauns aporenhice gosinonduttes,ete capve Bree met +4MEMBERSCOMMENTSOMcntSemNova NEXT MEETING DATE Nov 16,2018 ADJOURNMENT BPMC or IMC meeting availability IMC Aron Possible ML&P |GVEA CEA MEA AEA Board room dates (Kirk) BPMC =.gutizla2+o Jan 4 HEA ML&P CEA MEA Seward |GVEA AEA Board room 12/14 Or 8:30-11 no cv,Pw Oe2[7 OK |pterlon |Of ok |oK |oc 2)U-Y ot |w-tpuot |No C7 |*E A330 |nok 10-13 1212.AM sacreay |lL ok VU Oe |of Bradley Lake Project Management Committee Thursday,Oct 25,2018 Teleconference Meeting **PLEASE WRITE LEGIBLY** NAME ORGANIZATION DSpepopy ec,Spal ZBL.LEU BLL Woe 11:23 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE BPMC 10/25/18 ;First Second,First,Second First SecondA First j Second :Wport|pcoF ||VU"[ENT Lai [por ||wort|LO .Res 2018-03 Roll call from top to bottom ending with Chair Roll call Agenda Minutes Extend O&M Agreement Budget Amendment Yes No Yes No ]Yes No Yes No Yes No Matanuska Electric Association Tory Z Pl a Chugach Electric Association L7e_Pa Ce ee \f y \1 2 City of Seward Sohn _\\)Ne uv Municipal Light &Power Marck _)j \" Homer Electric Association Cx ad " Golden Valley Electric Association Cory -a Alaska Energy Authority Bryan uo a First Second First second :First Second First Second First Second ayo Qe a Roll call from top to bottom ending with Chair Yes No Yes No Yes No Yes No Yes No Matanuska Electric Association Chugach Electric Association City of Seward Municipal Light &Power Golden Valley Electric Association " " " ae Homer Electric Association WA VeAlaskaEnergyAuthority Next Meeting:11/16. ATTENDANCE -BPMC MEETING,Oct 25|__|.COMMITTEE MEMBERS "ALTERNATE” WACory Borgeson,Chair GVEA "Leo Quiachon - |Mee Thibert _CEA Zz Burke Wick Vy Brad Janorschke HEA |Bob Day » |a;Bryan Carey,Secretary/Trereasurer AEA ,_Janet Reiser |Tony Izzo,Vice Chair a "MEA AtTonyZellers a|i,Mark Johnston }MLP ||Jeff Warner John Foutz COUNSEL | !"Me Hutchinson (APA)ee ee -ecsece Cooke Senne ia enTWPatch|Eric Myers (American Transmission Co)semen|Ron Rebenitsch (Energy Engineering)VS Psy ES Maa hy Advisers.Fenerty CEA.:BrianHickey (CEA)1 .irik-Gibsorr McDowell Rackner&Gibson||A]PC Mecelvn Fone 2 |Mark Johnson (CEA)||Stefan Saldanha,Dept of Law !J seri Higher (CEA)|Paul Risse (CEA)OO "AEA i_Brenda Applegate|Matt Clarkson (CEA)| |Katie Conway /|||Josh Resnick (CEA)LC "Amy Adler"HEA |7 Rich Baldwin (HEA)an-Aoceiyn GardnerOOAlanOwens(HEA)_Brandi White,Emily Hutchinson (HEA)'Carmen Noble 7 LamyJorgensen(HEA)=s-i'"(Csté«CO Teri Webster Steve Canon (HEA)_Tom Erickson-MLP |Anna Henderson (MLP)_-David Lockard-|Molly Morrison (MLP)CO csWarren :; GVEA |4 Ron Woolf(GVEA)__Jessica Houston ||Pete Sarauer (GVEA)|! MEA |Jim Brooks (MEA)_a i |:OO <David Pease (MEA)|Matt Reisterer (MEA)_ :.or enkins (ME)ne ee -an|Public a Bernie Smith_Crystal Enkvist(APA) RESOLUTION OF BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE RESOLUTION NO.2018 -03 Authorizing the Second Amendment to the Second Amended and Restated O&M Agreement Introduction:The Bradley Lake Project Management Committee ("BPMC')is in the process of developing a new O&M Agreement governing the terms and conditions under which the Bradley a ;Lake Hydroelectric Project ("Project”)will be operated.The currently effective O&M Agreement is.0)LO"SZ set to termina Jdanuary4+,2848-Additional time is needed by the BPMC to finalize the termso\and conditions under which the Operator shall perform its duties at the Project. Purpose of Resolution No.2018-03:Resolution No.2018-03,authorizes the Alaska Energy Authority ("Authority”)to enter a Second Amendment with the Operator,Homer Electric Association,Inc.("HEA”),to extend the provisions of the current O&M Agreement governing the current term and notice of termination of the O&M Agreement for a period of three (3)additional months,and provides that the compensation to be paid to the Operator during the period January 1,2019 through March 31,2019 is in accordance with the compensation criteria and rates specified in Exhibits A ("Compensation”)and A-1 ("Calculation(s)of Compensation Payment”)to the Second Amendment. RESOLUTION NO.2018-03 WHEREAS,the Bradley Lake Project Power Sales Agreement (the "Power Sales Agreement”) provides that the BPMC shall arrange for the operation and maintenance of the Project and Project Related Facilities; WHEREAS,the BPMC is authorized under its Bylaws adopted pursuant to the terms of the Power Sales Agreement to approve agreements for the operation and maintenance of Project and Project related facilities; WHEREAS,to provide for the operation and maintenance of the Project and Project Related Facilities,the BPMC entered the Master Maintenance and Operating Agreement with the Authority under which the Authority shall enter contracts necessary to perform services for,or operation and maintenance of,the Project and Project Facilities; WHEREAS,the Authority and HEA entered the Second AmendnSSnt and Restated Operation andNoeMaintenance,for Bradley Lake Hydroelectric Project effective July 1,2008 (the "O&MyhUeeementYtointeralia,provide that HEA would continue as Operator and operate and maintain\§the Project in accordance with the terms and conditions of the O&M Agreement; WHEREAS,the BPMC authorized the Authority and HEA to enter the First Amendment to The Second Amended and Restated Operation &Maintenance Agreement for Bradley Lake Hydroelectric Project ("First Amendment')on June 15,2016; Page 1 of 2-BPMC Resolution 2018-03:Authorizing Second Amendment to the Second Amended and Restated O&M Agreement WHEREAS,the First Amendment extended the provisions of the O&M Agreement governing the current term and notice of termination of the O&M Agreement for a period of six (6)months to January 1,2019; WHEREAS,the BPMC has decided that additional time is required to handle issues by and between BPMC Participating Utilities and has authorized the Authority to enter a Second Amendment to The Second Amended and Restated Operation &Maintenance Agreement for Bradley Lake Hydroelectric Project ("Second Amendment”)with HEA on October 25,2018 (Second Amendment attached hereto); WHEREAS,the Second Amendment extends the provisions of the O&M Agreement governing the current term and previously presented notice of termination of the O&M Agreement for a period of three (3)months through March 31,2019 and provides that the compensation to be paid to the Operator during the period January 1,2019 through March 31,2019 is in accordance with the compensation criteria and rates specified in Exhibits A ("Compensation”)and A-1 ('Calculation(s)of Compensation Payment')to the Second Amendment. NOW,THEREFORE,IT IS HEREBY RESOLVED BY THE BPMC,that additional time is needed by the BPMC to finalize the terms and conditions under which the Operator shall perform its duties at the Project;and, BE IT FURTHER RESOLVED BY THE BPMC,that a period of three (3)months should be enough time to finalize the terms and conditions under which the Operator shall perform its duties at the Project;and, BE IT FURTHER RESOLVED BY THE BPMC,that the compensation to be paid to the Operator during the period January 1,2019 through March 31,2019 shall be in accordance with the compensation criteria specified in Exhibits A ('Compensation')and A-1 ("Calculation(s)of Compensation Payment”)to the Second Amendment;and, BE IT FURTHER RESOLVED BY THE BPMC,that the Authority is authorized by the BPNC to enter a Second Amendment with the Operator,HEA,to extend the provisions of the current O&M Agreement governing the current term and notice of termination of the O&M Agreement for a period of three (3)additional months (until March 31,2019),and to provide that the compensation to be paid to the Operator during the period January 1,2019 through March 31,2019 shall be in accordance with the compensation criteria and rates specified in Exhibits A ("Compensation”)and A-1 ("Calculation(s)of Compensation Payment”)to the Second Amendment;and, BE IT FURTHER RESOLVED BY THE BPMC,that the above Recitals be incorporated and made part of to this Resolution No.2018-03. Dated at Anchorage Alaska,this 25th day of October 2018. Chair Attest: Secretary Page 2 of 2 --BPMC Resolution 2018-03:Authorizing Second Amendment to the Second Amended and Restated O&M Agreement SECOND AMENDMENT TO THE SECOND AMENDED AND RESTATED OPERATION &MAINTENANCE AGREEMENT FOR BRADLEY LAKE HYDROELECTRIC PROJECT This SECOND AMENDMENT TO THE SECOND AMENDED AND RESTATED OPERATION & MAINTENANCE AGREEMENT FOR BRADLEY LAKE HYDROELECTRIC PROJECT ("Second Amendment')dated effective as of October 25,2018,is entered into by and between the Alaska Energy Authority ("Authority”)and Homer Electric Association,Inc.("HEA”). WITNESSETH WHEREAS,the Authority is a public corporation of the State of Alaska duly created,organized,and existing pursuant to AS 44.83,and authorized by law to sell electric power generated by the Bradley Lake Hydroelectric Project ("Project”); WHEREAS,the Authority is authorized under AS 44.83.396 to enter agreements for the operation and maintenance of power projects owned by the Authority with a qualified utility; WHEREAS,the Bradley Lake Project Power Sales Agreement (the "Power Sales Agreement”) provides that the Bradley Lake Project Management Committee ("BPMC”)shall arrange for the operation and maintenance of the Project and Project Related Facilities; WHEREAS,the BPMC is authorized under its Bylaws adopted pursuant to the terms of the Power Sales Agreement to approve agreements for the operation and maintenance of Project and Project Related Facilities; WHEREAS,to provide for the operation and maintenance of the Project and Project Related Facilities,the BPMC entered the Master Maintenance and Operating Agreement with the Authority under which the Authority shall enter contracts necessary to perform services for,or operation and maintenance of,the Project and Project Facilities;WHEREAS,the Authority and HEA entered the Second Amenafaet and Restated Operation and \Maintena for Bradley Lake Hydroelectric Project effective July 1,2008 (the "O&M Agreement'),storie aia,Brovide that HEA would continue as Operator and operate and maintain the Project inWNaccordancewiththetermsandconditionsoftheO&M Agreement; WHEREAS,the Authority,before executing a contract or contract amendment for operation or maintenance of the Project or Project related facilities,must submit the contract or amendment to the BPMC for its review and approval under the Master Maintenance and Operation Agreement; WHEREAS,the BPMC authorized the Authority and HEA to enter the FIRST AMENDMENT TO THE SECOND AMENDED AND RESTATED OPERATION &MAINTENANCE AGREEMENT FOR BRADLEY LAKE HYDROELECTRIC PROJECT ("First Amendment')on June 15,2016; WHEREAS,the First Amendment extended the provisions of the O&M Agreement governing the current term and notice of termination of the O&M Agreement for a period of six (6)months to January 1,2019; WHEREAS,the BPMC has decided that additional time is required to handle issues by and between BPMC Participating Utilities and authorized the Authority and HEA to enter this Second Amendment on October 25,2018; SECOND AMENDMENT TO 0&M AGREEMENT PAGE 1 of 2 WHEREAS,the Second Amendment extends the provisions of the O&M Agreement governing the current term and previously presented notice of termination of the O&M Agreement for a period of three (3)months through March 31,2019 and provides that the compensation to be paid to the Operator during the period January 1,2019 through March 31,2019 is in accordance with the compensation criteria and rates specified in the attached Exhibit A ("Compensation”)and Exhibit A- 1 ('Calculation(s)of Compensation Payment');and, WHEREAS,the BPMC has reviewed and approved this Second Amendment. NOW,THEREFORE,THE PARTIES AGREE AS FOLLOWS: 1.Section 2(b)of the O&M Agreement shall be amended to read as follows: Except as expressly provided in this section,the term of this Agreement shall be five (5) years from the Effective Date and shall be automatically renewed for successive five-year terms until terminated as provided herein and subject to the termination rights set forth in Section 2(c)and Section 7(d).Notice of termination by either party shall be given two years in advance of the end of any term;provided,however,that the current,(or second)term of this Agreement shall be extended to March 31,2019,and the date for which termination notice shall be given shall be correspondingly extended to March 30,2017. 2.Section 10(d)of the O&M Agreement shall be amended to read as follows: Subject to the availability of funds,the Authority shall reimburse the Operator for all costs under this Agreement.For the period January 1,2019 to March 31,2019,the compensation to be paid to the Operator shall be in accordance with the compensation criteria and rates specified in Exhibit A and Exhibit A-1 to the Second Amendment to the Second Amended and Restated Operation &Maintenance Agreement for Bradley Lake Hydroelectric Project, dated October 25,2018. 3.Except as amended in this Second Amendment,the terms and conditions of the O&M Agreement remain in full force and effect. IN WITNESS WHEREOPF,the Parties have caused this Second Amendment to be executed the day and year first above written.- HOMER ELECTRIC ASSOCIATION,INC. By Bradley P.Janorschke General Manager ALASKA ENERGY AUTHORITY By Janet Reiser Executive Director SECOND AMENDMENT TO 0&M AGREEMENT PAGE 2 of 2 EXHIBIT A TO SECOND AMENDMENT TO THE SECOND AMENDED AND RESTATED OPERATION &MAINTENANCE AGREEMENT FOR BRADLEY LAKE HYDROELECTRIC PROJECT COMPENSATION A1.Payments will be made on approved invoices submitted for months during which costs are incurred.Except for fixed price(s) and fixed fees,compensation shall be cost- based on actual costs to the Operator for providing services.Provisions for Audit are contained in Section 6 of the Agreement. A2.Payments shall be calculated in accordance with this Exhibit A.Payments are limited to amount(s)approved and included in the annual Bradley O&M budget, Emergency Expenditures,and pre-approved Extraordinary Costs as described and defined in the Agreement.The Operator expressly has no right to any payment in excess of these amounts absent approval from the Authority and the BPMC through an amended budget. A3.Payments shall be made to the Operator consistent with Section 10 of the Agreement. A4.There are four categories of compensation payable to Operator for the services provided under this Agreement:(1) Direct Costs of Direct Labor;(2)Indirect Costs;(3)Third-Party Direct Costs;and (4) Other Pre-Approved Operator Labor.The following terminology and explanations are applicable to this Exhibit A;any inconsistencies appearing in this Exhibit shall be resolved in accordance with the terminology in Section 1 of the Agreement. A4.1 Direct Costs of Direct Labor -Base salary and/or wages,exclusive of Fringe Benefits or other Indirect Costs and Fees. Base salary and/or wages for those employees (maintenance,operation,facility training,and supervision)assigned by the Operator to the Bradley Project shall be fixed at the rate specified in Exhibit A-1 for the duration of the Agreement. EXHIBIT A TO SECOND AMENDMENT TO O&M AGREEMENT -COMPENSATION A4.2 Indirect Costs -Allowable expenses that,because of their incurrence for common or joint cost objectives,are to be allocated to this Agreement using a specified Indirect Cost Rate of 155 percent calculated on the straight time hourly rate for any Direct Costs of Direct Labor.The Indirect Cost Rate of 155 percent is fixed for the duration of the Agreement. A4.2.1.Indirect Costs include,but are not limited to,the following categories:Fringe Benefits,Overhead (General & Administrative Expenses -including Indirect Labor),and Allocated Home Office Overhead (if applicable). A4.2.1.a.Fringe Benefits -Costs for items such as: e Vacation time,holidays and authorized leave; e Group and Worker's Compensation Insurance; e Deferred Compensation/Retirement plans; e Social Security and Unemployment Taxes;and e Group Medical plan and Life Insurance Premiums. A4.2.1.b.Overhead -Costs for items such as the following,if they are not included in Direct Costs: e Indirect Labor (Supervisory, Administrative,etc.,base salary or wages) e Recruiting expenses,travel,food and lodging; e Rent,heat,power,light and janitorial services; PAGE 1 of 2 e Office supplies,reproduction costs, communications; e Upkeep and depreciation of equipment and computers; e Rentals of equipment and computers; and, e Business Insurance premiums not billed to clients. A4.2.1.c.Allocated Home Office Overhead (if applicable)- Costs for management,supervisory,and administrative functions which benefit separate unit operations. A4.3 Third-Party Direct Costs ("Expenses")- Pre-approved unit priced items,actual costs for specific subcontracts approved in accordance with this Agreement,and actual costs for the following: e Transportation (economy rate/air- coach); e Food and lodging (Generally,not to exceed agency per diem rates); e Incidental travel expenses;and, If not recovered in the Indirect Cost Rate - the following: ¢Equipment &computer use at pre- approved rates; e Specific materials and supplies;and, Other pre-approved direct expenses. Each Expense is limited to reasonable costs which do not exceed that which would be incurred by an ordinarily prudent person in the conduct of competent business. A4.4,Other Pre-Approved Operator Labor. Any Operator Direct Labor for Job Classifications not identified in Exhibit A-1. All such labor must be pre-approved by the Authority and the BPMC and the payment for such labor shall be limited to the Direct Costs of Direct Labor plus Fringe Benefits for such employee.The Indirect Cost Rate does not apply to Other Pre-Approved Operator Labor, EXHIBIT A TO SECOND AMENDMENT TO O&M AGREEMENT -COMPENSATION and no such markup shall be paid to the Operator for this type of service. A5.Non-allowable Costs -Payments for the following items and certain other costs defined in 48 CFR Part 31 and related regulations are not allowable.Such costs shall not be included as billable Direct or Indirect Costs or in the calculation of the Indirect Cost Rate.The non-allowable costs include: e Interest and other financial costs; e Contributions and donations; e Federal income taxes &tax return preparation fees; e Deferred state income taxes; e Bad debts; e Fines and penalties; e Entertainment,social club memberships,etc.; e Goodwill; e Provisions for contingencies; e Losses on other contracts and related legal fees;0 purote®Prof and/or markups;e Legal fees,etc.,related to contract claims;and, e Costs not approved by the Regulatory Commission of Alaska for recovery in rates. A6.Markup of any costs as compensation for administration,management or handling, etc.,is prohibited.Costs of such efforts are included within the elements of Direct Labor and/or Indirect Labor.Compensation for any risk associated with incurring costs is included within Indirect Cost Rate. PAGE2 of 2