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Home My WebLink AboutBPMC Sept 21, 2018BRADLEY 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 MOTION:Mr.Day made a motion to approve the existing negotiated contract.Motion seconded by Mr.Foutz. BPMC Minutes 9/21/18 Page |of 6 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.Gibson convened a task force and reviewed the contract in two phases;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 !egal 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. 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. BPMC Minutes 9/21/18 Page 2 of 6 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. A roll 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 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 BPMC Minutes 9/21/18 Page 3 of 6 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. 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 spent was $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. BPMC Minutes 9/21/18 Page 4 of 6 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 a new 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 clalms and federal land fees.The motion was seconded. Motion passed without objection. 7.D.Executive Session:11:20 a.m. ¢Battie Creek Construction Clalms *Federal Land Fees The Committee reconvened its regular meeting at 11:50 a.m. 11.NEXT MEETING DATE-October 19,2018 12.ADJOURNMENT There being no further business for the committee,the meeting adjourned at 11:51 a.m. BY: Cory Borgeson,Chair Attest:Str) tJanetposeAlaskaEnergy Authority,Secretary BPMC Minutes 9/21/18 Page5 of6 SZ BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) REGULAR MEETING Friday,Sept 21,2018 10:00 A.M. Alaska Energy Authority,Board Room 813 W.Northern Lights Boulevard,Anchorage,Alaska To participate VIA TELECONFERENCE-1-888-585-9008 -Conference room code 467-050-126 AGENDA 1.CALL TO ORDER 2.ROLL CALL FOR COMMITTEE MEMBERS 3.PUBLIC ROLL CALL 4.PUBLIC COMMENTS 5.AGENDA APPROVAL 6.PRIOR MINUTES -August 17,2018 7.NEW BUSINESS A.Bradley O&M Agreement K Gibson B.Battle Creek Update AEA C.Generator Report HEA D.Executive Session e Battle Creek Construction claims e Federal Land Fees REPORTS A.O&D Update P Sarauer B.Operators Report HEA C.Budget Subcommittee Report AEA COMMITTEE ASSIGNMENTS 10./MEMBERS COMMENTS 11.NEXT MEETING DATE -Oct.19,2018 12.ADJOURNMENT BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Alaska Energy Authority,Anchorage,Alaska August 17,2018 1.CALL TO ORDER Chair Janorschke called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:01 a.m.A quorum was established. 2.ROLL CALL FOR COMMITTEE MEMBERS Bryan Carey (Alaska Energy Authority [AEA]);Mark Johnston (Anchorage Municipal Light & Power [ML&P]);Cory Borgeson (Golden Valley Electric Association [GVEA]);Lee Thibert (Chugach Electric Association [CEA]);Tony Izzo (Matanuska Electric Association [MEA]);John Foutz (City of Seward);and Bradley Janorschke (Homer Electric Association [HEA)). 3.PUBLIC ROLL CALL Tom Erickson,Jocelyn Gardner,Michele Hope,David Lockard,Janet Reiser,Kirk Warren,Teri Webster,Brandi White (AEA);Matt Clarkson,Brian Hickey,Burke Wick (CEA);Stefan Saldanha (Department of Law);Ron Rebenitsch (Energy Engineering);Leo Quiachon (phone-GVEA);Bob Day,Emily Hutchinson (phone),Alan Owens (HEA);Kirk Gibson (McDowell Rackner Gibson,PC);Ed Jenkins,David Pease (phone),Matt Reisterer,Tony Zellers (MEA);Molly Morrison,Jeff Warner (ML&P);Bernie Smith (Public),and Ladonna Lindley (AccurType Depositions).4.PUBLIC COMMENTS None. 5.AGENDA APPROVALMOTION:Mr.Johnston made a motion to approve the agenda.Motion seconded by Mr.Thibert... Mr.Carey requested to add an executive session regarding Battle Creek legal and financial discussions after Member Comments in the agenda.Chair Borgeson noted the executive session could be placed as Item 10B on the agenda. The amended agenda,including Item 10B.Executive Session,was unanimously approved. 6.PRIOR MINUTES-July 20,2018 MOTION:Mr.Foutz made a motion to approve the Minutes of July 20,2018.Mr. Johnston seconded the motion. The motion passed unanimously. 7.NEW BUSINESS DRAFT BPMC Minutes 8/17/18 Page 1 of 3 A,Battle Creek Construction Update Mr.Carey informed the contractor is progressing quickly.The Lower Access Road is substantially completed.Road pioneering has reached the beginning of Wall #2.The July payestimateandcontractormaterialquantitiesremainoutstanding.The contractors are experiencing challenges providing accurate survey data and the corresponding dollar request.The perception is more general excavation has occurred than was anticipated and less rock excavation has occurred than was anticipated.The additional rock excavation was expected tobeusedforpipebeddingandthefinalsurfaceoftheroad.At this point,the quantities being produced are on the low side for project costs. Mr.Carey noted a proposal is being reviewed regarding utilization of sheet pile for the cutoff wall at East Fork instead of using a membrane.AEA has requested the contractor providedetailedinformationbytheendofAugustregardingpossibleimpactstothescheduleorcost of the project due to alignment changes.Currently,the contractor is close to the original budgetandclosetothespringschedule.Mr.Carey showed and described pictures of the Lower Access Road and pioneering of the Upper Access Road. Mr.Rebenitsch commented the contractoris building a quality road,despite the occasionalchallenges. C.Bradley O&M Agreement Update | Mr.Gibson informed Chair Borgeson tasked him with moving forward the O&M Agreement.Mr.Gibson followed two parallel tracks.One path is the O&M terms and conditions and the second path is the financial compensation to the operator.Both paths are progressing well.Mr.Gibson anticipates the O&M Agreement will be ready for review and approval by the BPMC at the September meeting.Mr.Gibson requested any specific direction regarding compensation bedirectedtotheFinanceCommittee. Mr.Carey expressed AEA looks forward to the successful conclusion and approval of theOperatorAgreementattheSeptember21"BBPMCmeeting.8."REPORTS | A.O&D Report. Mr.Warner explained the Bradley O&D Report does not include items that will be reviewed in the Operator Report.CEA has scheduled a 60-day outage beginning February 2019,to conduct work on the 115 kV line between Hope and Summit.HEA is scheduling an outage in 2019,to conduct work on the 115 kV line between Soldotna and Quartz.Mr.Warner stated the O&D and Railbelt utilities will do their best to ensure the least amount of impact during the outages. Mr.Warner informed the BPMC assigned the O&D to provide a dam safety surveillance monitoring presentation.Mr.Carey gave a summary dam safety reporting description at the August 6"O&D meeting.Mr.Warner requested Mr.Carey develop a presentation to give at a future BPMC meeting.Mr.Warner stated the O&D made a recommendation the operator inspect the fish water screens every five years.The next inspection is schedule in the 2021 timeframe. DRAFT BPMC Minutes 8/17/18 Page 2 of 3 Mr.Warner conveyed Mr.Day requested approval of the O&D to spend approximately $32,000 to inspect Unit 2's IRIS readings.The O&D approved the expenditure.CEA agreed to lend their corona camera to the Bradley Project,resulting in an estimated savings of $6,000. Discussions regarding an inspection of Unit 1 are likely to occur at the next meeting. B.Operators Report Mr.Day noted the annual outages went well.Unit 1 was out 10 days and Unit 2 was out a week.Mr.Day expressed appreciation to Orion for their ongoing allowance to utilize barge space.He noted Bradley has returned cooperation by storing Orion's bags of grout inside the substation.Mr.Day discussed the winding health on Unit 2 has been monitored for years and continues to trend at higher readings.An inspection by a generator consultant will be conducted to assess the cause of the readings.Mr.Day explained the cost of replacement after a failure is approximately three times the cost of rewinding the stator.Mr.Day noted the power tunnel slide gate testing resulted in a few issues described in the report. 9.COMMITTEE ASIGNMENTS None. 10.MEMBERS COMMENTS A.Member Comments . Mr.Carey announced he will be absent for the September meeting. Mr.Thibert expressed appreciation to Mr.Gibson for his work on the O&M Agreement. Chair Borgeson announced a five-minute break,to be followed by Executive Session to discussBattleCreeklegalandfinancialmatters.Mr.Gibson advised attendees in the Executive Session must be designated by a member.There was no objection. B.-Executive Session:10:37 am.Battle Creek Legal and Financial Matters11.-NEXT MEETING DATE -September 21,2018 12.ADJOURNMENT ' There being no further business for the committee,the meeting adjourned at 11:04 a.m. BY: Cory Borgeson,Chair Attest: Janet Reiser Alaska Energy Authority,Secretary DRAFT BPMC Minutes 8/17/18 Page 3 of 3 RESOLUTION OF BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE RESOLUTION NO.2018 -02 Authorizing the Second Amendment to the Second Amendedand 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.2018-02:Resolution No.2018-02,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 two (2)additional months. RESOLUTION NO.2018-02 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 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; 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. Page 1 of 2-BPMC Resolution 2018-02:Authorizing Second Amendment to the Second Amended and Restated O&M Agreement 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 September 21,2018 (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 two (2)months until March 1,2019. 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 two (2)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 Authority is authorized by the BPMC 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 two (2)additional months;and, BE IT FURTHER RESOLVED BY THE BPMC,that the above Recitals be incorporated and made part of to this Resolution No.2018-02. Dated at Anchorage Alaska,this 21st day of September 2018. Chair Attest: Secretary Page 2 of 2-BPMC Resolution 2018-02: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 September 21,2018,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 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 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. SECOND AMENDMENT TO O&M AGREEMENT Page 1 of 2 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 September 21,2018; 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 two (2)months until March 1,2019. 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 1,2019,and the date for which termination notice shall be given shall be correspondingly extended to February 28,2017. 2.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 O&M AGREEMENT Page 2 of 2 AB BPMC Meeting West Fork Upper Battle Creek Update September 21,2018 Events: e Lower Access Road (LAR)is substantially complete. e July Pay Application reviewed and LAR cost at estimated. e Road pioneered out to Upper Access Road (UAR)to Sta 475 above Wall #2. e By Pass road constructed above Wall 2 with time and materials.Will accelerate schedule.Cost being quantified (S200K -S400K). e AEA and Contractor discussing a road alignment change at Wall 2.Net cost $1.2m.Will help schedule,increase short and long term safety,and decrease long term operational cost/risk. e Perception is that more general excavation and less rock excavation has occurred than bid estimates for first half UAR.General excavation is lower cost but pipe bedding will require additional rock. e Reviewing August (first half UAR)quantity surveys &Pay Application. e Contractor will not complete all road to diversion this year. e 2019 will be very busy with road completion,pipe installation,outfall work, and diversion dam work. Schedule: Upper Access Road pioneered to base of Wall 3. Pioneering at and past Wall 3.Will be occurring in the next month. If they maintain schedule they will pioneer to diversion site this year.Walls sections will not be completed this year.However,difficult sections and weather unknowns may cause adjustments. Contractor on budget.Schedule appears to be slightly behind initial schedule for substantial completion Fall 2019.Contract document have substantial completion July 2020. Photo 1.By pass road going over Wall 2 area. Photo 2.Outfall area image from drone of Upper Access Road SOCIATION'RELECTRICAS e..ehh eeeoneLyane:ey tk tee rae AURAL NTSee stratsAYak Fart! cana orshee -. +» - a . " . tem seme = om a ores a *wag¥>we we OForm ' o ie oe i 3 ' 4 hae Fee, Lc aoe, a ae vi i -ee "wate d °an ea, -_-herd game,or * Tn aanY veo ar s ans saa wn\ Rae . aes-”ay . _ " aad nis creatneat mreosi - Ea 2ot 2 « . ao . ey ON, ' , : oe > * . t . ha , ve é, : . bb eg . ° . we + Ly > ; '' ¢ , * vo ' : , : ' 4 ' 1 = " s . ; 6 . . oS . "a. - 'oer+=°'.hoe eee).tha tane --see Yow fhe eee!.IY pans SePagayeaes es7Spee”7 weeT4eyageronsets aame.iy uf BYpeers,oe eB]ft:Pees,af bsSabSerefe condon gp Unit Statistics: Bradley Lake Operator Report BPMC September 21,2018 as of 09/18/2018 Generation Unit 1 (MWhrs)Unit 2 (MWhrs)Total (MWhrs) August 2018 17,635 12,169 29,804 Hydraulics Avg.Lake Level (ft.)Usage {ac ft.)Fish water (CFS) ft.) August 2018 1156.6 28,958 122.7 AVG Lake Level -1164.5'as of September 18,2018 (Imminent spill is at 1175) Capital Projects: 1)Battle Creek work has slowed -Work continues but the contractor does not appear to have the same number of staff on site. 2)Barge Shipment -Yenney and associates barge shipment of materials and equipment was received on September 13.Materials are staged and work is commencing on the building. 3)Fish Water Control Automation The fish water flow computer has been repaired. We have tried to operate in automatic but the system was unstable at certain flows which resulted in a variation.Right now,automatic seems to over release. It appears that our table for flow per pipe at a given depth of lake is not accurate. We are making test runs and providing Emerson with the data for analysis. 4)Public Dock -The floating dock is closed during construction of Battie Creek. 5)FERC -personnel visited the site,toured Battle Creek and conducted an annual inspection of the project.The comments at the time were very positive concerning the state of the plant and the cleanliness. 6)Brush Clearing -Gage Tree Service provided personnel to clear the brush from the spillway wall and alongside the groin of the Dam.When FERC visited they seemed to be satisfied with the work. 7)Invasive weeds -Staff from the Soil conservation District will return on September 28"for an additional round of weed control. Bradley Lake Operator Report Page 1 8)Unit 2 Generator concerns -We took Unit 2 out of Service Sept 17 to conduct electrical tests on the machine.At the time of this writing those tests were incomplete.|will try to make a verbal report on the 21°. Operations,Maintenance,and Inspections: 1)Operations-During the month of August operations were fairly normal with little excitement to report. 2)Unit availability-Unit 1 99.89%,Unit 2 100%.Unit one was shut down by the dispatcher due to system disturbances for .8 hours.This demonstrates one of the issues with some KPI's.The unit right now is either shut down,running and Unit 2 out for 0 Hours for annual maintenance. 3)Gate Testing -The broken switch has been repaired and is working.The Diversion tunnel gates have been tested. 4)Equipment Storage Building -the contractor and materials are on site and construction is underway. 5)Flight Coordination -Flights have slowed somewhat with the slower pace of work at Battle Creek. Generator exposed for testing Bradley Lake Operator Report Page 2 Initial testing Bradley Lake Operator Report Page 3 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT FY 2018 4th QUARTER REPORT REVENUES,EXPENSES &CHANGES IN SURPLUS REVENUES UTILITY CONTRIBUTIONS OTHER MISCELLANEOUS* INTEREST INCOME EXPENSES OPERATIONS RENEWAL/REPLACE (R&C REPAYMENTS) R&C INTEREST APPLIED AS REPMT NON R&C CAPITAL PURCHASES-See A1 TRANSFER TO OPERATING RESERVE DEBT SERVICE (net of Capital Reserve Reduction) TRANSFER TO ARBITRAGE CURRENT YEAR SURPLUS(DEFICIT) PRIOR YEAR SURPLUS (DEFICIT) BEGINNING SURPLUS (DEFICIT) COMMITTED CY EXP &DEBT SVC ENDING SURPLUS (DEFICIT) BALANCE SHEET ASSETS REVENUE FUND OPERATING FUND DUE FROM R&C DUE FROM AEA OTHER RECEIVABLE PREPAID LIABILITIES &SURPLUS CURRENT LIABILITIES UNEARNED REVENUE DUE TO R&C COMMITTED CY EXP &DEBT SVC PAYABLE TO UTILITIES O&M PAYABLE TO UTILITIES R&C OTHER INFORMATION OPERATING RESERVE MONTHLY CONTRIBUTIONS *HEA sale of vehicles and loader-AEA to return funds to utilities with year end refund FY2017 FY2018 FY2018 ACTUALS AMENDED ACTUALS BUDGET 17,172,295 19,819,362 19,819,362 .-17,251 1,991,555 1,845,000 2,064,454 19,163,850 21,664,362 21,901,067 4,011,783 4,593,387 3,985,722 2,115,124 2,793,307 2,793,306 361,781 -226,781 89 1,307,000 954,060 (85,531)(112,145)(112,145) 12,426,200 12,778,100 12,778,100 334,404 304,713 270,777 19,163,850 21,664,362 20,896,601 -1,004,466 -(1,004,466) 1,338,657 -1,771,032 2,431,121 -855,664 1,147,663 -440,987 15,000 --51,2694,917,441 :3,133,952 1,657,802 -1,289,276 888,567 -399,223 1,223,409 -1,004,466 1,147,663 -440,9874,917,441 :3,133,952 1,030,822 918,677 918,677 1,628,614 3,303,227 3,303,227 1 of 10 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Other Project Costs-Battle Creek FY 2018 4th Quarter Report Revenues,Expenses &Changes in Surplus Revenues Utility Contributions Capital Reserve Contributions Other Available Funds Interest Income Expenses Battle Creek Administrative costs Capital Purchases Transfers To(From)Operating Reserve Debt Service IRS Subsidy Cost of Issuance 9th Series Capital Reserve Contribution Transfer to Arbitrage Current Year Surplus(Deficit) Committed to CY Expense &Debt Service Ending Surplus (Deficit) Balance Sheet Assets Revenue Fund Operating Fund Due from Capital Reserve Fund Other Receivable Prepaid Liabilities &Surplus Current Liabilities Committed to CY Expense &Debt Service Payable to Utilities O&M Other Information Operating Reserve Monthly Contribution March Monthly Contribution April thru June FY2018 FY2018 Amended Actuals Budget 03/05/18 633,356 633,353 2,796,378 2,796,378 499,985 499,985 -14,758 3,929,719 3,944,474 43,800 137,456 16,500 16,500 8,760 8,760 903,064 895,824 -(571,876) 21,217 25,730 2,936,378 2,796,378 3,929,719 3,308,772 -635,702 -(635,702) -733,871 -2,610 -6,000 -742,481 -106,780 -635,702 -742,481 8,760 8,760 117,164 117,164 172,064 172,064 2 of 10 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Schedule A-1 FY17 FY17 FY18 FY18CAPITALPURCHASESNOTFUNDEDBYR&C FUND BUDGET |ACTUALS |BUDGET |ACTUALS Replace Fish Water Valve Actuators 250,000 89 225,000 361,430 Equipment storage shed (unheated bus barn)--100,000 67,539 1 ton Flatbed with Plow --65,000 57,016 Battle Creek Bridge Repair Refurbishment (2)--182,000 - Mobil Crane 40 to 50 tons (used)--100,000 88,875 Replace Michigan Loader --350,000 263,306 Replace 1988 Suburban Ambulance --65,000 §9,430 1/2 ton Pick up truck --35,000 34,693 Upgrade Residence kitchens/Crews Qtrs Kitchen --165,000 1,850 Replace High Bay Lighting in Power Plant --20,000 19,920 Total Non R&C Capital Purchases 250,000 89 1,307,000 954,060 3 of 10 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS &MAINTENANCE SCHEDULE B BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2017 THROUGH 06/30/2018 FY 18 FY 17 BUDGET % FY18 Approved 07/01/2017 -(Over)Under FY17 Approved Budget 06/30/2018 HEA Actual CEA Actual AEA Actual Total Actual |Budget to Date Budget FY17 Actual [Summary by expense type Labor &Benefits 1,889,814 1,889,814 1,467,072 121,165 *1,578,236 311,578 2,005,079 1,533,371 Travel 76,950 76,950 14,413 1,701 *16,114 60,836 132,950 27,009 Training 49,300 49,300 14,046 --14,046 35,254 49,300 35,736 Contractual 841,062 841,062 375,351 :284,422 659,773 181,289 1,217,418 850,184 Supplies &Materials 183,345 183,345 150,121 2,678 :152,799 30,546 229,358 113,150 Other Costs 387,818 387,818 35,696 38,345 202,329 276,370 111,448 381,744 297,447 Equi Furniture and Machinery 7,000 7,000 24,767 798 :25,562 (18,562)11,500 10,137 Maintenance Projects *-2,581 800 -3,381 (3,381)}=- Administrative Costs 1,158,098 1,188,098 43,790 :1,215,650 1,259,441 (101,343}}1,126,761 1,144,749 4,593,387 4,593,387 2,127,837 158,484 1,702,401 3,985,722 607,665 5,154,110 4,011,783 FERC 535 -Operation Supervision &Engineering Operations Sup/Eng Bradley Lake Operating Labor &Benefits 265,587 265,587 262,431 °:262,431 3,156 299,649 266,820 Travel 10,450 10,450 2,271 -.2,271 8,179 10,450 9,452 Training 9,300 9,300 3,452 :-3,452 5,848 9,300 11,171 Contractual 1,000 1,000 121 °.121 879 1,400 300 Supplies &Materials 4,000 4,000 3,210 -.3,210 790 4,100 5,781 Bradley Lake Operating Total 290,337 290,337 271,485 <-271,485 18,852 324,899 293,523 FERC 535 -Operation Supervision &Engineering Total 290,337 290,337 271,485 --271,485 18,852 324,899 293,523 FERC 537 -Hydraulic Expenses Hydraulic Expenses Bradley Lake Operating Labor &Benefits 94,453 94,453 69,032 .:69,032 25,421 92,745 65,670 Contractual 2,000 2,000 ----2,000 4,000 5,647 Supplies &Materials 2,000 2,000 976 ::976 1,024 2,900 886 Bradley Lake Operating Totat 98,453 98,453 70,008 --70,008 28,445 99,645 72,202 FERC 537 -Hydraulic Expenses Total 98,453 98,453 70,008 ::70,008 28,445 99,645 72,202 FERC 538 -Electric Expenses Electric Expenses Bradley Lake Operating Labor &Benefits 232,294 232,294 202,969 ::202,969 29,325 242,940 193,058 Travel 7,000 7,000 6,877 --6,877 123 7,000 8,638 Training 25,000 25,000 231 .:231 24,769 25,000 23,737 Contractual 2,000 2,000 1,400 =:1,400 600 2,000 1,400 Supplies &Materials 9,732 9,732 §,513 --$,513 4,219 8,500 4,672 Bradley Lake Operating Total 276,026 276,026 216,990 ::216,990 59,036 285,440 231,505 FERC 538 -Electric Expenses Total 276,026 276,026 216,990 :.216,990 $9,036 285,440 231,505 FERC 539-Misc.Hydraulic Power ion E. Misc Hydro Power Exp Bradley Lake Operating Labor &Benefits 179,530 179,530 172,689 ::172,689 6,841 178,991 137,740 Training 15,000 15,000 10,363 =°10,363 4,637 15,000 829 Contractual 287,525 287,525 212,841 ::212,841 74,684 297,048 214,899 Supplies &Materials 17,900 17,900 18,271 <°18,271 {371}17,900 19,695 Bradley Lake Operating Total 499,955 499,955 414,164 -:414,164 85,791 508,939 373,163 BRADLEY CIRCUITS/RADIO TO BERNICE LK Other Costs 35,695 35,695 35,696 ..35,696 (1)35,695 35,696 BRADLEY CIRCUITS/RADIO TO BERNICE LK Total 35,695 35,695 35,696 :-35,696 {1)35,695 35,696 BRADLEY CIRCUITS BERNICE LK TO ANCH Other Costs 29,773 29,773 2 29,728 -29,728 4s 29,773 29,540 BRADLEY CIRCUITS BERNICE LK TO ANCH Total 29,773 29,773 :29,728 -29,728 45 29,773 29,540 FERC 539 -Misc.Hydrautic Power Generation Expenses Total 565,423 565,423 449,860 29,728 -479,587 85,836 574,407 438,398 FERC $40 -Rents FERC Land Use Fee Bradley Lake Operating Other Costs 318,000 318,000 :.202,079 202,079 115,921 312,176 230,614 Bradley Lake Operating Total 318,000 318,000 ::202,079 202,079 115,921 312,176 230,614 FERC 540 -Rents Total 318,000 318,000 :-202,079 202,079 115,921 312,176 230,614 FERC $41 -Maintenance Supervision &Engineering Maint Supervision/Eng Bradley Lake Operating Labor &Benefits 272,586 272,586 263,101 :-263,101 9,485 224,283 229,602 Bradley Lake Operating Total 272,586 272,586 263,101 °°263,101 9,485 224,283 229,602 FERC 541 -Maintenance Supervision &Engineering Totat 272,586 272,586 263,101 --263,101 9,485 224,283 229,602 4o0f 10 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS &MAINTENANCE SCHEDULE 8 BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2017 THROUGH 06/30/2018 FY 18 FY 17 BUDGET % FY18 Approved 07/01/2017 -{Over)Under FY17 Approved Budget 06/30/2018 HEA Actual CEA Actual AEA Actual Total Actual |Budget to Date Budget FY17 Actual FERC 542 -Maintenance of Structures Maintenance of Structures Bradley Lake Operating Labor &Benefits 94,453 94,453 70,197 -:70,197 24,256 92,746 65,629 Contractual 10,000 10,000 :::<10,000 10,000 - Supplies &Materials $3,713 53,713 $7,919 --57,919 {4,206},53,713 42,233 Equipment,Furniture and Machinery 7,000 7,000 8,513 --8,513 {1,513)]11,500 8,318 Maintenance Projects -.2,581 >-2,581 {2,581)]:: Bradley Lake Operating Total 165,166 165,166 139,209 -:139,209 25,957 167,959 116,180 FERC S42 -Maintenance of Structures Total 165,166 165,166 139,209 .-139,209 25,957 167,959 116,180 FERC 543 -Maintenance of Reservoirs,Dams &Waterways Maint Res,Dams,WWays Bradley Lake Operating Labor &Benefits 50,610 50,610 9,314 -:9,314 41,296 $0,409 50,035 Contractual 6,500 6,500 --:-6,500 5,200 63,704 Bradley Lake Operating Total 57,110 $7,110 9,314 ::9,314 47,796 55,609 113,739 BRADLEY NUKA REPAIR Contractual 15,000 15,000 **-*15,000 15,000 980 BRADLEY NUKA REPAIR Total 15,000 15,000 id --:15,000 15,000 980 BRADLEY POWER TUNNEL MAINT (Oam) Contractual 15,000 15,000 :---15,000 15,000 9,431 BRADLEY POWER TUNNEL MAINT (Dam)Total 15,000 15,000 .-:15,000 15,000 9,431 FERC 543 -Maintenance of Reservoirs,Dams &Waterways Tot 87,110 87,110 9,314 --9,314 77,796 85,609 124,151 FERC 544 -Maintenance of Electric Plant Maintenance of Elec Plant Bradley Lake Operating Labor &Benefits 379,102 379,102 291,662 -:291,662 87,440 370,983 266,161 Travel 4,500 4,500 >:°:4,500 4,500 740 Contractual 70,000 70,000 59,793 ::59,793 10,207 79,000 36,844 Supplies &Materials 20,000 20,000 12,743 --12,743 7,257 27,248 13,081 Bradley Lake Operating Total 473,602 473,602 364,198 -:364,198 109,404 481,728 316,825 FERC 544 -Maintenance of Electric Plant Totat 473,602 473,602 364,198 .:364,198 109,404 481,728 316,825 FERC 545 -Maintenance of Misc.Hydraulic Plant Maint of Misc Hydr Plant Bradley Lake Operating Labor &Benefits 94,453 94,453 86,833 :-86,833 7,620 92,746 66,129 Contractual 3,900 3,900 2,009 a -2,009 1,891 3,900 §,274 Supplies &Materials 35,000 35,000 49,502 :-49,502 {14,502}43,000 20,631 Bradley Lake Operating Total 133,353 133,353 138,344 -:138,344 (4,991)139,646 92,033 BRADLEY FISH WATER DSGN/MIODLE FORK SHACK IMPR Contractual -::----20,000 - Supplies &Materials --1,345 --1,345 (1,345)-: BRADLEY FISH WATER DSGN/MIDDLE FORK SHACK IMPR Ta :.1,345 :°1,345 (1,345)20,000 : FERC 545 -e of Misc.Hydraulic Plant Total 133,353 133,353 139,689 °:139,689 (6,336)159,646 92,033 FERC 556 -System Control &Load Dispatching System Cntl &Load Disp Bradley Lake Operating Labor &Benefits 20,618 20,618 34,363 id -34,363 (13,745)49,502 27,294 Contractual 53,000 53,000 35,618 --35,618 17,382 60,500 66,135 Supplies &Materials 6,000 6,000 642 -°642 5,358 6,000 2,229 Equipment,Furniture and Machinery --16,254 --16,254 (16,254)-: Bradley Lake Operating Total 79,618 79,618 86,878 :-86,878 {7,260)116,002 95,657 Snow Measurement Bradley Lake Operating Contractual 10,000 10,000 *-10,000 10,000 .10,000 10,000 Bradley Lake Operating Total 10,000 10,000 -:10,000 10,000 -10,000 10,000 Seismic Service Bradley Lake Operating Contractual 62,000 62,000 :-61,285 61,285 715 60,370 61,358 Bradley Lake Operating Total 62,000 62,000 -.61,285 61,285 715 60,370 61,358 Streamguaging Serv Bradiey Lake Operating Contractual 213,137 213,137 *:213,137 213,137 :310,000 187,164 Bradley Lake Operating Total 213,137 213,137 °:213,137 213,137 :310,000 157,164 Permits Bradley Lake Operating Other Costs 350 350 :-250 250 100 100 450 Bradley Lake Operating Total 350 350 --250 250 100 100 450 FERC 556 -System Control &Load Dispatching Total 365,105 365,105 86,878 .284,672 371,550 (6,445)496,472 324,629 Sof 10 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS &MAINTENANCE SCHEDULE B BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2017 THROUGH 06/30/2018 Fy 18 FY 17 BUDGET % FY18 Approved 07/01/2017 -(Over)Under FY17 Approved Budget 06/30/2018 HEA Actual CEA Actual AFA Actual Total Actual Budget to Date Budget FY17 Actual FERC 562 -Station Expenses Station Expenses Bradley Lake Operating Labor &Benefits 123,726 123,726 1,573 121,165 -112,738 10,988 130,414 151,868 Travel 6,000 6,000 .1,701 .1,701 4,299 6,000 . Contractual 4,000 4,000 7,440 :-7,440 (3,440)4,000 3,447 Supplies &Materials 16,000 16,000 -2,678 -2,678 13,322 16,000 3,848 Other Costs 4,000 4,000 -8,618 >8,618 (4,618)4,000 1,148 Equipment,Furniture and Machinery ::-795 -795 {795):- Maintenance Projects -::800 -B00 (800):: Bradley Lake Operating Total 153,726 153,726 9,014 125,756 -134,770 18,956 160,414 160,311 FERC 562 -Station Expenses Total 153,726 153,726 9,014 125,756 bd 134,770 18,956 160,414 160,311 FERC 571 -Maintenance of Overhead Lines Maint of OH Lines Bradley Lake Operating Labor &Benefits 82,402 82,402 2,907 :>2,907 79,495 179,671 7,014 Travel 49,000 49,000 5,265 ::5,265 43,735 95,000 8,179 Contractual 86,000 86,000 56,046 :-56,046 29,954 50,000 : Supplies &Materials 19,000 19,000 -:-:19,000 50,000 95 Equipment,Furniture and Machinery -:::bd *:-584 Bradley Lake Operating Total 236,402 236,402 64,218 :-64,218 172,184 374,671 15,872 BRADLEY JUNCTION SWITCH REMOVAL Travel :::.:::5,000 : Contractual +:-----70,000 73,076 BRADLEY JUNCTION SWITCH REMOVAL Total -:-:--:75,000 73,076 BRADLEY MARKER BALL REPLACEMENT Labor &Benefits ::-----:6,352 Travel ::--::-$,000 : Contractual ::83 :>83 (83)200,000 140,526 Equipment,Furniture and Machinery -::--.-.1,235 BRADLEY MARKER BALL REPLACEMENT Total :-83 :-83 (83)205,000 148,113 FERC $71 -Maintenance of Overhead Lines Total 236,402 236,402 64,301 °°64,301 172,102 654,671 237,061 FERC 920 &930 -Administrative Expense AEA Bradley Fixed Admin Fees Bradley Lake Operating Administrative Costs 200,000 200,000 a -200,000 200,000 -200,000 200,600 Bradley Lake Operating Total 200,000 200,000 +:200,000 200,000 :200,000 200,000 Operating Committee Exp-Audit Bradley Lake Operating Administrative Costs 16,800 16,800 :2 16,800 16,800 :16,494 16,500 Bradley Lake Operating Total 16,800 16,800 :-16,800 16,800 -16,494 16,500 Operating Committee Exp-Legal Bradley Lake Operating Administrative Costs 25,000 25,000 -+115,610 115,610 (90,620)25,000 57,444 Bradley Lake Operating Total 25,000 25,000 :-115,610 115,610 {90,610)25,000 57,444 Operat Committee Exp-Arbitrage Bradley Lake Operating Administrative Costs 3,380 3,380 -:2,535 2,535 845 3,630 3,630 Bradley Lake Operating Total 3,380 3,380 -:2,535 2,535 845 3,630 3,630 Trust &Account Fees Bradley Lake Operating Administrative Costs 11,918 12,918 ::11,918 11,918 :12,000 11,918 Bradley Lake Operating Total 11,918 11,918 :-11,918 11,918 -12,000 11,918 Misc Admin Bradley Lake Operating Administrative Costs 10,000 10,000 ::10,350 10,350 {350}=10,000 Bradley Lake Operating Total 10,000 10,000 .:10,350 10,350 {350).10,000 FERC 920 &930 -Administrative Expense Total 267,098 267,098 :*357,213 357,213 (90,115)!257,124 299,492 FERC 924 &925 -Insurance Premiums insurance Premiums Bradley Lake Operating Administrative Costs $81,000 581,000 43,790 <580,915 624,705 (43,705)564,637 554,670 Bradiey Lake Operating Total 581,000 581,000 43,790 :$80,915 624,705 (43,705)564,637 $54,670 FERC 924 &925 -Insurance Premiums Total 581,000 581,000 43,790 .580,915 624,705 (43,705)|564,637 554,670 6 of 10 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS &MAINTENANCE SCHEDULE B BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2017 THROUGH 06/30/2018 FY 18 FY 17 BUDGET % FY18 Approved 07/01/2017 -(Over)Under FY17 Approved Budget 06/30/2018 HEA Actual CEA Actual AEA Actual Total Actual |Budget to Date Budget FY17 Actual FERC 928 -latory C jon Exp FERC Admin Fees Bradley Lake Operating Administrative Costs 185,000 185,000 -:176,523 176,523 8,477 180,000 122,210 Bradley Lake Operating Total 185,000 185,000 --176,523 176,523 8,477 180,000 122,210 FERC Related Prof Services BRADLEY FERC PART 12 INSPECTION Administrative Costs --::-:a 25,000 24,113 BRADLEY FERC PART 12 INSPECTION Total ---::=:25,000 24,113 BRADLEY CONTRACTUAL ENGINEER-FERC LICENSE ISSUES Administrative Costs 125,000 125,000 .:100,999 100,999 24,001 100,000 144,264 BRADLEY CONTRACTUAL ENGINEER-FERC LICENSE ISSUES T.125,000 125,000 :>100,999 100,999 24,001 100,000 144,264 FERC 928 -R vc E:Total 310,000 310,000 ::277,522 277,522 32,478 305,000 290,586 Total Bradley Lake Budget 4,593,387 4,593,387 2,127,837 155,484 1,702,401 3,985,722 607,665 5,154,110 4,011,783 7 of 10 BRADLEY LAKE R&C FUND DISBURSEMENTS AND REPAYMENTS SCHEDULE D Actual Actual Actual Actual Budget FY17 TO REPAY @ 6/30/18 TO REPAY FY18 Description Expense 6/30/2017 Expense 6/30/2018 |R&C FUND PROJECTS Governor 0.00 4,052,070.14 0.00 4,052,070.14 0.00 Replace RFLS 0.00 251,092.69 0.00 251,092.69 0.00 Replace Runners 0.00 1,946,732.79 0.00 1,946,732.79 0.00 Replace cable from dam to power house 0.00 2,321,922.94 0.00 2,321,922.94 0.00 Replace power system stabilizer 0.00 619,205.10 0.00 619,205.10 0.00 Replace two RTUs 0.00 86,905.27 0.00 86,905.27 0.00 Culvert Repairs 0.00 675,966.79 0.00 675,966.79 0.00 Tower Repair for Jack Frost Heaves 0.00 887,596.62 0.00 887,596.62 0.00 Replace Piant and SCADA Controls 0.00 1,344,683.05 0.00 1,344,683.05 0.00 Vibration Monitoring System 0.00 490.00 0.00 490.00 0.00 Fire Alarm System Replacement 0.00 0.00 0.00 0.00 350,000.00 Battle Creek Diversion 25,982.26 1,170,000.00 0.00 1,170,000.00 0.00 Bradley Replace Electro-Mechanical Relays 0.00 1,277,197.06 0.00 1,277,197.06 0.00 Fishwater Screen Debris Removal 0.00 312,236.43 0.00 312,236.43 0.00 Turbine Nozzel Repair 12,203.01 1,428,861.07 0.00 1,428,861.07 0.00 Spillway Raise 0.00 0.00 0.00 0.00 350,000.00 SVC replacement Daves Creek |Soldotna 5.606,007.81 7,176,585.15 1,341,405.96 8,517,991.11 1,360,400.00 5,644,193.08 | 23,551,545.10 1,341,405.96 |_24,892,951.06 2,060,400.00 Current Year R&C Repayment (3,262,788.00)(2,793,306.00) Adjust to balance to $5million 0.00 0.00 Interest in Fund Applied to Repayment (361,780.54)(226,781.00) Net Transfer from Revenue Fund (3,624,568.54)(3,020,087.00) Cumulative Prior Years R&C Repayments (15,409,249.92)(17,886,155.09) Due Back to Utilities 1,147 663.37 440,986.54 Adjust Due to R&C Actual 0.00 0.00 (14,261,586.55)(17,445,168.55) [NET DUE TO R&C FUND §.665,390.01 4,427,695.51 |R&C FUND CASH FLOW PROJECTION Beginning Investment Balance 5,623,509.49 3,219,624.39 Disbursements-current year -Accrual (2,906,842.05)(1,341,405.96) Disbursements-prior year accrued (2,065,650.48)(2,737,351.03) Utilities'R&C Repayment (1,055,961.11)(1,147 ,663.37) Net other cash inflow(outflow)0.00 0.00 Current year interest earnings 361,780.54 226,781.00 Participants Contributions to R&C Fund 3,262,788.00 __2,793,306.00| Ending Investment Balance 3,219,624.39 1,013,291.03 Accrued Due to Utilities (1,147,663.37)(440,986.54) Accrued R&C vendor Payable at Year End (2,737.351.03)0.00 PROJECTED NET DUE +ENDING INVESTMENT BALANCE §,000,000.00 5,000,000.00 REPAYMENT AMOUNT $3,330,802.80 x 25%yr 1 |32%yr 2 |25%yr 3 |18%yr4 2nd yr 1,065,856.90 [3rd yr 832,700.70 832,700.70 $5,644,193.08 x 25%all 4 years ist yr 1,411,048.27 [2nd yr 1,411,048.27 1,445,505.93 $1,341,405.96 x 25%all 4 years sdttt yr 335,351.49 515,100.00 ee 2476905.17 |2,579,100.46 2,793,306.63 8 of 10 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Battle Creek Capital Purchases Schedule E Expenses for the period 07/01/17 through 06/30/18 .FY17 FY18 FY18BattleCreekCapitalPurchasesACTUALS|BUDGET |ACTUALSSEeee Used 2007 Chevrolet Silverado 8,800 8,800 Used 2006 Chevrolet Silverado 7,700 7,700 Total Revenue Fund Capital Purchases -16,500 16,500 9 of 10 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Battle Creek Administrative Costs Schedule F Expenses for the period 07/01/17 through 06/30/18 FY 18 FY18 BUDGET % Approved 07/01/2017 -(Over)Under Budget 6/30/2018 HEA Actual AEA Actual Total Actual |Budget to Date Summary by expense type Administrative Costs 43,000 43,800 94,977 42,480 137,456 (93,656) 43,000 43,800 94,977 42,480 137,456 (93,656) FERC 920 &930 -Administrative Expense Battle Creek Admin Fees Administrative Costs 22,000 22,000 3,525 22,000 25,525 (3,525) Battle Creek Admin Fees Total 22,000 22,000 3,525 22,000 25,525 (3,525) Operating Committee Exp-Owners Representative Administrative Costs --89,196 -89,196 (89,196) Operating Committee Exp-Owners Representative Total --89,196 :89,196 (89,196) Operating Committee Exp-Legal Administrative Costs 15,000 15,000 -17,082 17,082 (2,082) Operating Committee Exp-Legal Total 15,000 15,000 -17,082 17,082 (2,082) Operat Committee Exp-Arbitrage Administrative Costs 2,000 2,000 -2,180 2,180 (180) Operat Committee Exp-Arbitrage Total 2,000 2,000 -2,180 2,180 (180) Trust &Account Fees Administrative Costs 4,300 4,300 -1,197 1,197 3,103 Trust &Account Fees Total 4,300 4,300 -1,197 1,197 3,103 Operat Committee Exp-Other Administrative Costs 500 500 2,255 21 2,276 (1,776) Operat Committee Exp-Other Total 500 500 2,255 21 2,276 (1,776) FERC 920 &930 -Administrative Expense Total 43,800 43,800 94,977 42,480 137,456 (93,656) Total 43,800 43,800 94,977 42,480 137,456 (93,656) 10 of 10 ALASKA ENERGY AUTHORITY BATTLE CREEK PROJECT FOR THE PERIOD 10/31/16 THROUGH 06/30/18 REVENUES,EXPENSES &CHANGES IN SURPLUS REVENUES UTILITY CONTRIBUTIONS INTEREST INCOME EXPENSES CAPITAL PURCHASES CURRENT YEAR SURPLUS(DEFICIT)* COMMITTED CY EXP &DEBT SVC ENDING SURPLUS (DEFICIT) BALANCE SHEET ASSETS BATTLE CREEK ACCOUNT RECEIVABLE LIABILITIES &SURPLUS CURRENT LIABILITIES COMMITTED CY EXP &DEBT SVC PAYABLE TO BATTLE CREEK PARTICIPATING UTILITIES* TOTAL TOTAL BUDGET ACTUALS 1,200,000 1,131,372 :2,488 1,200,000 1,133,860 1,200,000 1,133,860 1,200,000 1,133,860 -44,778 23,850 :68,628 -68,628 :68,628 1of2 ALASKA ENERGY AUTHORITY BATTLE CREEK PROJECT Schedule A-1 TOTAL TOTALCAPITALPURCHASESBUDGETACTUALS Battle Creek Diversion 1,200,000 1,133,860 Total Capital Purchases paid for by HEA,CEA,MEA,Seward _1,200,000 1,133,860 2 of 2 Bradley Lake Project Management Committee -Alaska Online Public Notices Page |of 1 STATUS:Active Bradley Lake Project Management Committee ALASKA ENERGY AUTHORITY (AEA) Bradley Lake Project Management Committee Notice is hereby given that the Bradley Lake Project Management Committee will hold a regular meeting on Friday,September 21,2018 at 10:00 a.m.For additional information contact Teri Webster at 907-771-3074. This meeting will be conducted by electronic media pursuant to AS 44.62.310 at the following location: Alaska Energy Authority Board Conference Room,813 West Northern Lights Boulevard,Anchorage,Alaska; A teleconference line has been set up for those unable to attend in person.Dial 1-888-585-9008,Enter Code 467-050-126#. The public is invited to attend.The State of Alaska (AEA)complies with Title Il of the Americans with Disabilities Act of 1990.Disabled persons requiring special modifications to participate should contact AEA staff at 907- 771-3074 to make arrangements. Attachments,History,Details Attachments Details None .Commerce,Community andDepartment:Economic Development Revision History Category:Public Notices Created 9/14/2018 10:19:33 AM by tawebster Sub-Category:Location(s):Statewide Project/Regulation #: Publish Date:9/14/2018 Archive Date:9/22/2018 Events/Deadlines: https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=191409 9/14/2018 FYx11. 12. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) REGULAR MEETING <aw Friday,Sept 21,2018 10:00 A.M. Alaska Energy Authority,Board Room 813 W.Northern Lights Boulevard,Anchorage,Alaska To participate VIA TELECONFERENCE-1-888-585-9008 -Conference room code 467-050-126 AGENDA CALL TO ORDER ROLL CALL FOR COMMITTEE MEMBERS PUBLIC ROLL CALL PUBLIC COMMENTS AGENDA APPROVAL PRIOR MINUTES -August 17,2018 NEW BUSINESS A.Bradley O&M Agreement K Gibson B.Battle Creek Update AEA C.Generator Report HEA D.Executive Session e Battle Creek Construction claims e Federal Land Fees REPORTS A.O&D Update P Sarauer B.Operators Report HEA C.Budget Subcommittee Report AEA COMMITTEE ASSIGNMENTS MEMBERS COMMENTS NEXT MEETING DATE -Oct.19,2018 ADJOURNMENT Wot BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE oo First Second,First Second First Second First SecondBPMC9/21/18 ROT TT oo I Ge |AT eZ [Apt+-q Roll Call Agenda Minutes f ¢v Roll call from top to bottom ending with Chair eQhishieg contract Yes No Yes No Yes N No Yes No Yes No ath. Matanuska Electric Association a yn"uv Chugach Electric Association a 8 -Vv ” City of Seward vw \O i uw v Golden Valley Electric Association WA 9)- Municipal Light &Power uv ” Homer Electric Association Y "1 Alaska Energy Authority ”Mocdaine J First ,Second First Second First Second First Second First Second obsRollcallfromtoptobottomendingwithChairap Yes No Yes No Yes No Yes No Yes No Matanuska Electric Association Chugach Electric Association City of Seward Golden Valley Electric Association -_ Municipal Light &Power Homer Electric Association PD Ska Alaska Energy Authority Next Meeting:9/21 Dh ey te So ew ad "ATTENDANCE - BPMC MEETING,Sept.21._COMMITTEE MEMBERS._ALTERNATE_,Cory Borgeson,(Chair _-|GVEA om 'LeoQuiachon-a|hee Thibert |CEA Burke Wick |Bradamorsenre =HEA |Bob Day - ; 7 AEA "Janet Reiser -fiTony Izzo,Vice Chair Oo MEA -(Tony Zellers -_:DO "Mark Johnston MLP -Jefffarner/SaoJohnFoutz SO sew Public Members COUNSEL oF CEA Hickey (CEA)oo Kirk Gibson,McDowell Rackner&GibsonPCDoceyNPecet |:|/Mark Johnson (((CEA)Oo oh -|Stefan Saldanha,Dept of Law |||Sherri Higher (CEA)a 7: :_Paul Risse (CEA):AEA Brenda Applegate |oT Matt Clarkson (CEA)Oe a Katie Conway OO / Josh Resnick (CEA)_|Amy Adler HEA :ye Ric Baldwin (!(HEA)--.Y Jocelyn Gardner Oo : nee pe ee eee 7 a Alan Owens (HEA)7 WA Brandi White P\x Emily Hutchinson(HEA)|__|Carmen Noble: |7|Larry Jorgensen (HEA)_|Teri Webster ;a Steve Canon (HEA)-'|Tom Erickson MLP Anna Henderson (MLP)CO David Lockard ; Moly orion WL)Warn a :GVEA Ron Woolf (GVEA)|Jessica Houston _ vw Pete Sarauer (GVEA)__- (MEA |dim Brooks (MEA)Deore &Saf:"Preeuhype|/David Pease (MEA);PeMattReisterer(MEA) Bdvenkins MEA)ce ;Public 4 Bernie Smith |ee |CrystalEnkvist (APA)| _|Mel Hutchinson(APA)od ee / |TW Patch an 7 ; _Eric Myers (American TransmissionCo)_7 --7 7 :w-"Ron Rebenitsch (Energy Engineering)'- okReeGornez ™M LP |_. 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Lee -COMMit}by hawrg it Aone CHNFAed-beforethethee nuhorzedebCan}agree +0 GO day s-not high power x Finance Commitee ASS ignment Budget Cost Joint mt w|BPHC Generotoc-]LSH Luks i”°outgoodforoftyc.Provide whin ndct yerFeboutayeSIMSFalkd IND ZS,se Committee Ass igh ment Budget for rend-need b adjust?Loss of refund vs.Add on, Cory-hor aqyreéc MD Curise +,lea al So ew eeLee-oo EM Ah fica lesues1 beg0%CostsSook 31M Agreceh wy BHCWeoyperformance.eguirencentsCOnkracktern4.5 vs SS yrsTolling,Seno yearn MUP -Support to Jable.Lee-coun Py hawrg ct done CetlFAgA-before tat hee ayjhorvedBeboCan}agree t0 40 day s-pot tik power x Finance Commetoe ASsignment Budge}cost Jeet ota wl BPHCarea:400d for off yr,Powe lofin next yearFebovtayeSIM.S Falkd im ZS,IiSo Comite Ass (Sh Ment Budget fr felind-need 3 adjust?Loss of refund vs.Add ON, Bradley Lake Project Management Committee Friday,Sept.21,2018 **PLEASE WRITE LEGIBLY** NAME ORGANIZATION Peter Savauer GVER HLgery Toaensen HEACon.phen ksck FEL BERME Sanz Fught & K\RK Gis MEG "Solp Ver tes, David {Ase alanset a Phe dieMAltfervsMoEePpala(opner TEAfoxyLEMexes"EN NU23.39 4 SHORT el Lo Extn,”(Lhe _ACA-