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Home My WebLink AboutBPMC May 30, 2017BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Alaska Energy Authority,Anchorage,Alaska May 30,2017 \ Chair Borgeson called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 1:30 p.m. 1.CALL TO ORDER 2.ROLL CALL FOR COMMITTEE MEMBERS Cory Borgeson (Golden Valley Electric Association [GVEA]);Michael Lamb (Alaska Energy Authority [AEA]);Lee Thibert (Chugach Electric Association [CEA]);Tony Izzo (Matanuska Electric Association [MEA]);Mark Johnston (Anchorage Municipal Light &Power [ML&P]);Bob Day (Homer Electric Association [HEA]);and John Foutz (Seward -phone). 3.PUBLIC ROLL CALL Bryan Carey,Jocelyn Garner,Daniel Hertrich,Kirk Warren,Teri Webster,Brandi White (AEA); Brian Bjorkquist (Attorney General's Office);Crystal Enkvist,Mike Maddix,Michael Rovito (ARECA Insurance Exchange and Alaska Power Association (phone));Brian Hickey,Mark Johnson,Burke Wick (CEA);Brad Janorschke (phone),Alan Owens (HEA);Kirk Gibson (McDowell Rackner Gibson,PC);Gary Kuhn (MEA);Jeff Warner (MLP);Bernie Smith;and Sydney Hamilton (Accu-Type Depositions). 4.PUBLIC COMMENTS None. 5.AGENDA APPROVAL MOTION:Mr.Thibert made a motion to approve the agenda.Motion seconded by Mr. Warner. Mr.Thibert requested to add Item 8E.Discussion of Bradley Lake Power Sales Agreement Addendum or Change to Bylaws to the agenda. The agenda was unanimously approved as amended,adding Item 8E.Discussion of Bradley Lake Power Sales Agreement Addendum or Change to Bylaws. 6.APPROVAL OF PRIOR MINUTES-April 18,2017 MOTION:Mr.Izzo made a motion to approve the minutes of April 18,2017.Motion seconded by Mr.Thibert. Mr.Lamb commented on the Battle Creek Update portion of the minutes,and stated specifically for the record during today's meeting,he,as Executive Director of AEA,and AEA have absolute BPMC Minutes 5/30/17 Page |of 5 confidence in Mr.Carey's project management capability and the State's project management Capabilities.Mr.Lamb apologized to Mr.Carey for not speaking up on his behalf at the previous meeting. The motion passed without objection. 7.OLD BUSINESS A.Spill Raise Decision Mr.Thibert requested the O&D Committee conduct an economic analysis on the spill raise project before a decision is made. MOTION:Mr.Johnston made a motion to table the Spill Raise Decision and assign the 0&D Committee conduct further analysis.Motion seconded by Mr.Lamb. Chair Borgeson asked AEA to delay any expenditures until the spill raise decision is made.Mr. Carey agreed. The motion passed without objection. 8.NEW BUSINESS A.Insurance Members asked questions regarding the provided 2017 insurance proposal.The Valuation report of $50M was done in 2009 this cost is for replacement of the powerhouse and electronics.The estimated probable maximum loss can be insured up to $50M if a large earthquake occurred.The premium increased seven percent due to changes in the policy from a property-casualty form to the All Risk Blanket policy.Addition increases are due to the policy not having been charged as much as it should have been in the last couple of years for the coverage.Mr.Borgeson noticed there was no General liability coverage and it should be at least $2M.Homer Electric will review their Commercial General Liability policy to see if the General liability coverage is there. Chair Borgeson will ask the finance committee to review the policy before the June 28 meeting. The 2017 insurance proposal must be approved by June 30,2017 to stay in compliance for continuous coverage. B.Motorized Land Access Permits Mr.Carey described the issue of requests from individuals to cross the Bradley land on snow machine mainly for access to landlocked property and traps.He advised Federal Energy Regulatory Commission (FERC)and agencies agree it is permissible for visitors to have a limited amount of motorized travel across Bradley property through a restricted permit process. This is not a general public use permit. MOTION:Mr.Johnston made a motion to approve the presented motorized land access permits.Motion seconded by Mr.Thibert. BPMC Minutes 5/30/17 Page 2 of 5 Mr.Gibson recommended HEA be included in the authority to terminate the permit for any reason. Chair Borgeson inquired about existing policies regarding approval or disapproval of permits. Mr.Carey informed no policies exist,but the FERC letter references limited access and not general access.Chair Borgeson noted the five-page AEA permit does not specifically state motorized access.The two-page HEA permit does reference motorized travel.Some modifications will be done to both forms including adding traveler's names to the permit. The motion passed without objection. Cc.Allocation &Scheduling Procedures Mr.Wick discussed the Revised Allocation and Scheduling Procedures as of May 30,2017. The O&D Committee generated the updates and revisions based on the current methodology and use.The O&D Committee recommends its adoption. MOTION:Mr.Johnston made a motion to adopt the Revised Allocation and Scheduling Procedures in substantial form as discussed during the meeting,with an effective date of May 30,2017.Motion seconded by Mr.Day. Mr.Day commented Mr.Wick dedicated a considerable amount of effort in revising the procedures.He noted the dispatcher now declares impending spills or spill conditions,rather than AEA.Mr.Day believes this is significant because the dispatcher is aware of the current status at Bradley Lake. Mr.Lamb informed AEA is happy with the revisions. Mr.Gibson requested he provide non-substantive edits to the final document,which are important for clarity and consistency.Chair Borgeson informed he will assign Mr.Gibson to make the housekeeping edits to the document.The final document can be presented to the BPMC as information in the next Board packet. A roll call was taken,and the motion passed unanimously. D.Dynamic Dispatch Update Mr.Wick advised there have been no changes between ML&P and CEA on dynamic scheduling.GVEA conducts dynamic scheduling manually.Installation of a new system is ongoing.MEA does not utilize their dynamic dispatch capability.HEA is experiencing delays in resolving issues and should be operational within a few weeks. Chair Borgeson expressed appreciation to CEA and staff for their flexibility during this process. E,Discussion of Bradley Lake Power Sales Agreement Addendum or Change to Bylaws Mr.Thibert led a discussion regarding a possible amendment to the Power Sales Agreement to address participation in the Battle Creek project.The second issue focussed on whether or not a modification to the Bylaws was appropriate to accommodate the additional Project work.Mr. Gibson believes all of the topics of concern can be addressed at the operator level.He BPMC Minutes 5/30/17 Page 3 of 5 suggested the operator track the specific costs for Battle Creek and the BPMC determine the annual allocation of benefits and costs.Mr.Gibson will continue his diligent review and provide further direction to the members. Mr.Johnston commented ML&P has discussed the possibility of proceeding with the Battle Creek diversion project under an agreement with one or more of the other partners to pay for and receive the benefit of ML&P's share. Chair Borgeson expressed his understanding that all six utility members are supportive of the Battle Creek project going forward,but all members may not participate in the Battle Creek power and may want to separate it out. Mr.Janorschke requested Mr.Gibson create a draft resolution to be discussed at a future meeting allowing the optional project work to move forward.He requested Mr.Gibson review a possible Bylaw provision to ensure Battle Creek participants have the opportunity to be involved in any changes to Battle Creek water allocation. Chair Borgeson does not believe a resolution for optional project work can go forward without secured financing and additional accounting by members.Chair Borgeson will assign Mr. Gibson to work on modifications to go forward with Battle Creek as optional project work. Mr.Carey gave an update on the project timeline.FERC Dam Safety is reviewing the Battle Creek design and comments are expected in July.The Department of Natural Resources (DNR)land lease amendment is anticipated to be completed by July 20th,after which the surveying and flagging for brush-cutters would begin.Additional work on bid specifications for the Request for Proposal (RFP)will take approximately four to six weeks.Mr.Carey stated the determination of member commitment and delivery of additional funds must be made before the end of June to attain the August RFP timeline goal. 9,COMMITTEE REPORTS None. 10.OPERATOR REPORT Mr.Day submitted the Operator Report.A full Bradley outage is scheduled and coordinated for three to five days next week to work on the transmission line.Mr.Day reported contact with the Homer Fire Department is ongoing to familiarize them with the facility in case of emergency. 11.COMMITTEE ASSIGNMENTS Chair Borgeson assigned the O&D Committee to review the spillway extension work completed by DOWL and report back to the members regarding the financial benefits. Chair Borgeson assigned the Finance Committee and Mr.Gibson to review the insurance proposal,including general liability coverage and bond requirements and report findings at the next meeting. Chair Borgeson gave Mr.Gibson two additional assignments,1)to review the methodology for Battle Creek project to go forward as optional project work,and 2)to provide the edits to the BPMC Minutes 5/30/17 Page 4 of 5 Revised Allocation and Scheduling Procedures to the O&D Committee before their next meeting. 12.MEMBERS COMMENTS Mr.Johnston noted he will be absent the next meeting and Mr.Warner will attend in his stead. Chair Borgeson expressed appreciation to all for their efforts before and during the meeting. 13.NEXT MEETING DATE -June 28 The next meeting date is June 28,2017. 14.ADJOURNMENT , There being no further business for the committee,the meeting adjourned at 3:35 p.m. (A)paCoryBorgeson,ChairAttest:Wh L!,LoMichaelLambAlaskaEnergyauthoritySecretary BPMC Minutes 5/30/17 Page 5 of 5 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING AGENDA Tuesday,May 30,2017 1:30 p.m. Alaska Energy Authority's Board Room 813 West Northern Lights Boulevard,Anchorage,AK To participate by phone,dial 1-888-585-9008 and use code 467 050 126. 1.CALL TO ORDER 2.ROLL CALL FOR COMMITTEE MEMBERS 3.PUBLIC ROLL CALL 4.PUBLIC COMMENTS 5.AGENDA APPROVAL 6.APPROVAL OF PRIOR MINUTES -APRIL 18,2017 7.OLD BUSINESS A.SPILL RAISE DECISION 8.NEW BUSINESS A.INSURANCE B.MOTORIZED LAND ACCESS PERMITS C.ALLOCATION &SCHEDULING PROCEDURES D.DYNAMIC DISPATCH UPDATE 9.COMMITTEE REPORTS 10.OPERATOR REPORT 11.COMMITTEE ASSIGNMENTS 12,MEMBERS COMMENTS 13.NEXT MEETING DATE JUNE 28 14.ADJOURNMENT ARECA CEA BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Alaska Energy Authority,Anchorage,Alaska April 18,2017 1.CALL TO ORDER Chair Borgeson called the regular meeting of the Bradley Lake Hydroelectric ProjectManagementCommitteetoorderat10:42 a.m.os, 2.ROLL CALL FOR COMMITTEE MEMBERS Cory Borgeson (Golden Valley Electric Association [GVEA]);Michael Lamb (Alaska EnergyAuthority[AEA]);Lee Thibert (Chugach Electric Association [CEA]);Tony Izzo (Matanuska Electric Association [MEA]);Mark Johnston (Anchorage Municipal Light &Power [ML&P]);Brad Janorschke (Homer Electric Association [HEA]);and John Foutz (Seward). 3.PUBLIC ROLL CALL °N Bryan Carey,Jocelyn Garner,Daniel Hertrich,Kirk Warren,Teri Webster (AEA);Brian Bjorkquist (Attorney General's Office [AGO]);Crystal Enkvist (Alaska Power Association [APA]); Sherrie Highers,Mark Johnson,Burke Wick (CEA);Ron Wolfe (GVEA);Emily Hutchinson,BobDay,Larry Jorgensen,Alan Owens (HEA);Kirk Gibson (McDowell Rackner Gibson,PC);GaryKuhn(MEA);Molly Morrison,Jeff Warner (MLP);Bernie Smith (Regulatory Commission ofAlaska[RCA]);and Sydney Hamilton|(Accu-Type Pepositions).4.PUBLIC COMMENTSNone.---7 gpm ;;me 3 5.AGENDA APPROVAL,-./ MOTION:Mr.Lamb made a motion to approve the agenda.Motion seconded by Mr.Izzo.The agenda \was approved.., 6.APPROVAL OF PRIOR MINUTES -March 17,2017MOTION:Mr.Thibert made a motion to approve the minutes of March 17,2017.Motion seconded by Mr.Johnston. The motion passed without objection. 7.OLD BUSINESS A.Battle Creek Financing Mr.Gibson summarized his findings that Battle Creek decisions and financing can proceed under optional project work with the affirmative vote of AEA and the affirmative participation of DRAFT BPMC Minutes 4/18/17 Page 1 of4 four representatives with a total of 51%project responsibility.The long-established project responsibility is delineated as CEA at 30.4%,ML&P at 25.9%,GVEA at 16.9%,MEA at 13.8%, HEA at 12%,and Seward at 1%.Mr.Gibson commented the complexities of the operations if only four members participate will be the challenge for the Committee.Mr.Gibson recommended all Committee members initially participate in the Battle Creek Diversion and then specific rights to be assigned for 15 years. Mr.Borgeson asked can the Battle Creek project go forward if only three utilities wanted to participate.With private financing and the agreement of all utilities on who is responsible for what,it can happen. Mr.Thibert informed CEA has prepared a draft amendment to the Power Sales Agreement that could allow one or more utilities to take energy from the diversion project and it includes concepts regarding O&M activities.Mr.Thibert will circulate the draft to the Committee next week for review.He believes one or more of the participants could go out and get privatefinancinginexchangefortheenergyoftheproject.A.LSMr.Janorschke requested an update on the timeline iin order to proceed with implementation. Mr.Carey gave a detailed description of the differences between bidding through a one-stepprocessandatwo-step process.Mr.Carey noted the importance of completing brushing and contractor site visits during August 2017.The final Battle Creek project financing agreements donothavetobecompletedbyAugustfforthistooccur.""ae ok 8.NEW BUSINESS aa?A.O&M Operator |Procurementx%,"A é sMr.Lamb stated he did not get za response from this committeeregarding changing the AEAregulationstobroadenthedefinitionofaqualifiedutilityasaprojectoperator.Based upondirectionfromtheAEABoardwearegoingtomoveforwardwithmodifyingtheregulations toensureanopenandcompetitiveRFPprocess.Mr.Thibert requested copies ofthe current regulations and proposed modifications be provided to members.Mr.Bjorkquist agreed and informed the proposed changes will have a publiccommentperiod.B.sve FinancingMr.Lamb informed AEAIis awaiting the resolution regarding the determination of the March 3rdletterquestioningtheenforceabilityofthePowerSalesAgreement.The security issue has to be resolved before AEA can proceed with seeking outside financing. Mr.Janorschke commented half of the SVC has been paid for through the R&C Fund and recommends continuing the payments for the remaining two years until it is paid off. Mr.Thibert believes the opportunity to finance the SVC has been missed and agreed to continued payments of the SVC through the R&C Fund. Mr.Izzo reiterated the upcoming budget places increased pressure on the R&C Fund.The proposed SVC financing would free up funds to accommodate the increased needs for equipment and remodeling. DRAFT BPMC Minutes 4/18/17 Page 2 of4 Cc.Battle Creek Update Mr.Carey informed Alaska Department of Natural Resources (DNR)should have public notice out this week for the land lease.The plans and specifications were submitted to Federal Energy Regulatory Commission (FERC)last week and a response is expected in July.The timeline remains unchanged from the previous update. Chair Borgeson requested Mr.Carey provide his experience and background regarding overseeing projects of this nature.Mr.Carey informed his experience includes approximately 25 Rural Energy Group projects in remote Alaska,focusing on bulk fuel,powerhouse,and hydroenergy.: Mr.Carey explained the support structure that will be provided by DOWL contractors andengineers.Chair Borgeson asked who will be present at the project site.Mr.Carey noted aDOWLrepresentatives,Ron Rebenitsch,would be at the site.Mr:Janorschke and Mr.Thibert vouched for Mr.Rebenitsch ability.AEA will conduct site visits during critical time periods.Chair Borgeson inquired if the utilities who sign up for Battle Creek willbe responsible for costoverruns.Mr.Carey expects that will be the agreement made between the utilities.ChairBorgesonaskediftheparticipatingutilities'representatives are able to have oversight at theproject.Mr.Carey welcomed further discussions about utility oversight and participation.Chair Borgeson commented the participating utilities have significant project management experience to contribute and expressed his candid concern regarding the management history of State of Alaska projects.Mr.Lamb commented,for the record,the number of well-managed StateprojectsfarexceedsthenumberofProjects|that have not been well--managed.a "*D.Bradley spillway Raise Presentation Mr.Carey began his presentation describing the Bradley project site photos provided.He notedadditionalenergygenerationfromBradleyappearstohaveoccurredoverthetimeperiod.Thereasonscouldincludeincreasedpowerplant«efficiencies,increased precipitation,and/or increased glacial melting.The rise is slow and variable from year-to-year.Mr.Carey noted thespillwaycrestis10feetbelowthedamcrestat1,180.The seven-foot addition to the spillwayheightprovidesthemostcosteffectivebenefit,increasing the storage capacity of Bradley Lakebyapproximately27,500 acre-feet.Se? -\;Mr.Carey discussed other projects that have raised spillways.Mr.Carey reviewed the approximate capital costs for the spillway raise construction.He gave an outline of the process,which includes an initial consultation document,comments to the document,and a vegetation study report.Mr.Carey noted he presented this information to the O&D Committee yesterday. Bradley generator increase in efficiency will produce an annual gain of 2500 MWh.Valuing Bradley energy at $50 MWh would save approximately $125,000 per year.Depending on the "rule curve”used during wet years Bradley could generate more energy by avoiding spills.It is hard to quantify this benefit. Chair Borgeson inquired about the potential timing of the project in reference to constraints on workers and facilities coinciding with the Battle Creek project.Mr.Carey noted the timing for FERC finalizations for a spillway raise is unknown but likely be about four years.Mr.Carey explained the various potential contractor benefits from the two projects occurring DRAFT BPMC Minutes 4/18/17 Page 3 of 4 simultaneously.Chair Borgeson commented the project could be delayed if financed through the current R&C Fund. Chair Borgeson proposed the Bradley spillway raise item be placed on the agenda for a decision at the next meeting. 9.COMMITTEE REPORTS None. 10.OPERATOR REPORT the month of March.There were no questions. 11.COMMITTEE ASSIGNMENTS None. 12.MEMBERS COMMENTS Mr.Janorschke requested an update on dynamic dispatch be added as an agenda item for thenextmeeting.: Mr.Izzo expressed interest in receiving additional Battle Creek data |fo provide to his board inordertomakeawell-informed decision.'. 13.NEXT MEETING DATE.*The next meetin date isisSto>bedetermined.Loe Gs E 2 . 14._ADJOURNMEN Saag?for the committee,the meeting adjourned at 12:06 p.m.There being no further busine BY: Cory Borgeson,Chair Attest: Michael Lamb Alaska Energy Authority,Secretary DRAFT BPMC Minutes 4/18/17 Page 4 of 4 Bradley Lake Project Management Committee Meeting Tuesday,May 30,2017 Agenda Item:8A -Acceptance of 2017 ARECA Exchange Insurance Proposal MOTION:Move that the Bradley Lake Project Management Committee accept the 2017 ARECA Exchange Insurance Proposal for Bradley Lake Project. Move: Second: ARECA Insurance Exchange 703 West Tudor Road,Suite 101 Anchorage,Alaska 99503-6650 907-771-5750 Fax:907-561-6206 www.alaskapower.org May 23,2017 Mr.Bryan Carey,P.E. Alaska Energy Authority Bradley Lake Hydroelectric Project 813 West Northern Lights Blvd Anchorage,AK 99503 Dear Mr.Carey: ARECA Insurance Exchange,your member-owned and member-governed insurance company,is pleased to provide you this proposal for your 2017 insurance coverage.Your insurance renewal will be with a new policy form:AIE's Alaska All-Risk Blanket Policy for Rural Electric and Rural Telephone Systems. This new form combines Property,Business Auto,Commercial General Liability,and Crime (fidelity) coverages into a single policy.If you have previously purchased stand-alone crime coverage,it is now included in the All-Risk Blanket Policy. There are differences between AIE's former property-casualty products and the new All-Risk Blanket Policy.These differences include changes in the sublimits portion of the Property Insurance policy to strike a better balance between the needs of our member systems and the additional reinsurance costs in providing (often higher)sublimits. With the adoption of the new All-Risk Blanket Policy,our rates have changed to reflect the coverage you are receiving and there may be some variances between what is proposed and your previous premiums. Adjustments have been made with great care to ensure that each AIE Subscriber is receiving a quality insurance product at a competitive price. AIE is also now offering Cyber Liability insurance.If you would like us to provide a quote please let us know. After you have taken a look at the proposal,please let us know if you would like to review it together and discuss any questions or concerns that you have.Thank you for your subscribership in ARECA Insurance Exchange. Sincerely, Crystal Enkvist Executive Vice President,ARECA Insurance Management,Inc. Alaska Insurance Experts for Alaska Utilities INSURANCE PROPOSAL Alaska Energy Authority Bradley Lake Hydroelectric Project Anchorage,AK Prepared By:Crystal Enkvist Policy Period:7/1/2017 to 7/1/2018 INSURANCE EXCHANGE Sots ve -retAORenteraeaneenasacreepenna ARECA Insurance Exchange (AIE)provides affordable insurance to Alaska utilities while building member equity and providing quality customer service to Exchange subscribers. 703 West Tudor Road,Suite 101 Anchorage,AK 99503-6650 Ell (907)771-5750 [|www.alaskapowerorg ARECAINSURANCE EXCHANGE Insurance Proposal_Alaska Energy Authority Bradley Lake Hydroelectric Project as 07/01/2017 10 07/01/2018 Anchorage,AK 99503-2495 Equipment Breakdown ooo ceeesececencnenesceeceeceeceeceecesceseeeeeucseeeesusteseessesaeesseestasesesesvaresssessecsaeedpage8 Directors,Officers and Managers Liability Protector neeeeneneeeeeedpage9 Premium Breakdown ooo ac ccecescnesececeececesceeceececesuseeeceeesesteceeserecseecsesssecesueeesssacessessestesseeseeedpage 11. Policy SUMMANY eae eacccecennecceceeceseueseneeesesueeeeceececeeceseseeeceeesvecseveuseseescecessenseenectestesasteeseeeeseeedpage13. OptionstoConsider ee cenencscseeenavevecsesenensesenseessssececessscesssceseseceteseeesesesteseeerevessseenseeseseedpage14 GlossaryofTerms nea eccecceucnsnceeeeceenececeessceeeeasceceseveeesssecesseeensssecenseseseseeisesneeeteestecesseeeeeeedpage 16 Proposal Signature Page page 20 This proposal is intended for general information purposes only.It is not intended to,and does not replace,modify,supersede or amend the actual language of any policy or the coverage available thereunder.This proposal is not a part of any policy.Any questions or disputes relating to claims,coverages or any other aspect whatsoever will be governed solely by the language of the applicable policy and any endorsements attached thereto. ARECA'La INSURANCENSEXCHANGE Alaska Energy Authority Bradley Lake Hydroelectric Project Anchorage,AK 99503-2495 07/01/2017 to 07/01/2018 Our staff consists of highly experienced,professional individuals who are committed to excellence.The following individuals are responsible for your insurance needs: Executive Office Safety &Loss Prevention Claims Underwriting Support SERVICE TEAM Crystal Enkvist,Executive Vice President Insurance Coverage Questions, Adding Property,Updating Coverages,etc. Direct Line:(907)771-5703 Fax:(907)561-6206 E-Mail:cenkvist@alaskapower.org Brenda Mead,Chief Financial Officer Direct Line:(907)771-5704 Fax:(907)561-6206 E-Mail:bnead@alaskapower.org Mel Hutchison,Director of Loss Control Loss Control and NRECA's Safety Achievement Program (RESAP) Direct Line:(907)771-5707 Fax:(907)561-6206 E-Mail:mhutchison@alaskapower.org Susan Kosinski,Claims Manager Direct Line:(907)771-5705 Fax:(907)561-6206 E-Mail:skosinski@alaskapower.org Angie Moua,Claims Assistant Direct Line:(907)771-5702 Direct Fax:(907)561-6206 E-Mail:amoua@alaskapower.org Lisa Heikes,Loss Control &Underwriting Assistant Direct Line:(907)771-5706 Direct Fax:(907)561-6206 E-Mail:lheikes@alaskapower.org If you have any questions or need assistance with any insurance matter,please contact us. JARECAINSURANCE EXCHANGE AIE Subscriber Benefits Alaska Energy Authority Bradley Lake Hydroelectric Project 07/01/2017 to07/01/2018 Anchorage,AK 99503-2495 As owners of ARECA Insurance Exchange (AIE),subscribers are entitled to appoint a representative from their utility to the AIE Board of Trustees.The AIE Board of Trustees is composed of one appointed representative from each insurance subscriber.AIE Trustees serve four-year terms.Alaska Energy Authority's (AEA)current AIE Trustee is Kirk Warren. AIE is managed by an attorney-in-fact,ARECA Insurance Management,Inc.(AIM).AIM Board Members are appointed by an advisory vote of the AIE Board of Trustees at the AIE Annual Meeting. AIE subscribers are also the owners of the policyholder surplus of over $20M that is held in reserve to maintain the financial stability of the organization.Subscribers also share in AIE's annual underwriting and investment profits or losses.The sharing of profits or losses is calculated annually through an allocation process.Shares of profits are deposited into a Subscribers Savings Account (SSA),which is established by each subscriber upon joining AIE. , In addition to the annual profit allocation,AIE also issues cash distributions from the SSA.These distributions are determined by the AIM Board each year.The total amount allocated to AIE SSAs from 2007 to 2016 was more than $16 million and the total of cash distributions paid to subscribers during that same period was more than $8 million. Below isa table showing the profit allocations to AEA's SSA and cash distributions received over the past five years: Allocation to SSA Account $154,633]$157,356]$160,554/$ 113,620|$72,853 |$977,753 Cash Distribution $22,145 |$20,689 |$25,865 |$24,596 |$10,892 |$167,594 % wot Ft ae JARECAINSURANCE WIEXCHANGE Property Protection 07/01/2017to 07/01/2018AlaskaEnergyAuthorityBradleyLakeHydroelectricProject Anchorage,AK 99503-2495 All-risk coverage for buildings,contents,inventory,tools,mobile equipment,radio towers and substations unless excluded. Ei Buildings and Personal Property Coverage Extensions Newly Acquired Property Automatic coverage for newly acquired property. 'Property Of Others Personal property in the care custody and control of the system on the insured premises. Extra Expense Necessary expenses incurred during period of restoration due to a covered loss. (Includes direct labor costs for work performed by policyholder's employees,plus 10%overhead.) Accounts Receivable Pays collection expense and the loss of revenue due to the destruction ofsupporting records. 'Valuable Papers and Records Pays to replace or restore information on lost or damaged valuable papers and records. --Sewer &Sump Pump Backup if maintained in good repair Additional Coverage i Fire Department Service Charge Pays the fire department,when called to protect buildings or personal property of the insured. Deductible $2,000,000 Deductible $250 Value $50,000,000 Limit $1,000,000 $50,000 $2,000,000 $1,000,000 $1,000,000 $25,000 Limit $50,000 ARECAEAINSURANCEwdEXCHANGE Property Protection Alaska Energy Authority Bradley Lake Hydroelectric Project 07/01/2017 to 07/01/2018 Anchorage,AK 99503-2495 HZ On Premises Pollutant Cleanup $50,000 Covers expense to extract pollutantsfrom land or water at property of insured for a covered loss. El Demolition /Increased Cost of Construction $250,000 Insures the cost of removing the ruins of a building partially destroyed by an insured loss. Endorsements to Property Ei Earthquake and Flood $50,000,000 Deductible is $10,000,000 flat per occurrence. Features Included: of All Risk ofDirect Physical Loss with Minimal Exclusions Covered property is insured against all direct physical loss except wear and tear,decay,mechanical breakdown,earthquake,flood damage,unexplained inventory shortages and steam boiler explosions. wv Blanket Loss Limit All locations and coverages are under one blanket limit for all property owned by the insured regardless of location,including property of others for which you are responsible. #Replacement Cost Coverage (except as noted) Maximum protection for assets.Buildings,contents and inventories are insured to replace or repair the property with like property of the same quality and construction.No deduction for depreciation. wv No Coinsurance There is no provision that limits the amount payable on a covered insured's property loss commensurate with the amount reported. w Full Coverage of All Property Away From Premises Full coverage of all insured property awayfrom your premises,with no sub limits. wv Extra Coverage for Debris Removal Providesfor expenses incurred to remove debris caused by a covered loss -30 %of loss. w Property Deductible Applies Per Occurrence Options to Consider: EI Data Restoration (ARB19) Loss or injury to electronic data stored in the insured's computer system.$5,000 ded. Hardware covered under blanket property limit. ARECAfyINSURANCESYEXCHANGE Crime Protection Alaska Energy Authority Bradley Lake Hydroelectric Project 07/01/2017 to 07/01/2018 Anchorage,AK 99503-2495 Covers employee dishonesty,loss of monies and securities both on and offpremises,counterfeit currency and money orders,and depositors forgery. Limit Blanket Limit $500,000 EZ Loss Inside the Premises $500,000 Loss of money and securities by the destruction,disappearance or wrongful abstraction within the premises or any banking premises or similar recognized places ofsafe deposit. El Loss Outside the Premises $500,000 Loss of money and securities by the destruction,disappearance or wrongful abstraction outside the premises while being conveyed by a messenger,messenger service or armored vehicle company,or in the living quarters of any messenger. |Money Order /Counterfeit Currency $500,000 Coverage for acceptance in good faith of counterfeit money order or currency. |Depositors Forgery $500,000 Loss due to forgery or alteration offinancial instruments such as checks,drafts or promissory notes drawn againsta policyholder's account. a Employee Dishonesty per employee /per occurrence $500,000/$4,000,000 Fraudulent or dishonest act(s)committed by any employee acting alone or in collusion with others. (Includes unauthorized credit card use.) Features Included: ¥No Deductible applies to this coverage. ¥Covers Employees or Premises Acquired Through Consolidations or Mergers Loss Under Prior Bond or Policy j{ARECAINSURANCE EXCHANGE Equipment Breakdown Alaska Energy Authority Bradley Lake Hydroelectric Project 07/01/2017 to 07/01/2018 Anchorage,AK 99503-2495 Provides coverage for direct damage to covered property subject to terms,conditions,limitations,and exclusions of the policy. Equipment Breakdown Limit @ Property Damage-Combined Limit $50,000,000 Coverage Enhancements @ Expediting Expense $2,000,000 @ Extra Expense $500,000 ™@ Newly Acquired Premises (90 days)$500,000 @ Ammonia Contamination é ;$100,000 @ Consequential Loss $100,000 ™@ Hazardous Substances $100,000 ™@ Water Damage $100,000 Deductibles ™Transformers over 100 MVA Cth (na ot BPiad ley $100,000 mw Hydro Turbine Generators $2.50 per KW mw All Other Objects $50,000 ARECA INSURANCE Directors,Officers and Managers Liability Alaska Energy Authority Bradley Lake Hydroelectric Project 07/01/2017 to 07/01/2018 Anchorage,AK 99503-2495 Protection from suits alleging wrongful acts by the directors,officers,trustees,managers,staff members,volunteers,or employees,whether salaried or not.Protects the entity as well as the individuals.Limit of coverage includes defense costs, settlements,judgments and expenses,as described in the policy. Deductible Limit Directors,Officers &Managers Liability Occurrence Limit $10,000 $5,000,000 Aggregate Limit N/A $5,000,000 The total amount the policy will pay in any given policy year,regardless of the number of losses incurred, including defense costs. Fiduciary Liability Limit N/A N/A Legal responsibility toe safeguard the assets of the beneficiaries (including ERISA). Features Included:(see policy for complete list) Y Claims-Made Coverage (Retro Available) Prior acts covered on consecutive policies,including Employment Practices Liability ¥Entity Coverage Coverage is the same for the entity as it is for directors,managers,etc. ¥Employment Practices Liability Claims alleging Sexual Harassment,Wrongful Discharge,or other EEOC violations v Employees As Insureds Director,officer,trustee,employee,volunteer or staff member of entity,salaried or not. v Employee Retirement Income Security Act of 1974 (ERISA) Claims arising out of the Employee Retirement Income Security Act of 1974 (ERISA) ¥Mergers and Acquisitions Coverage Does Not Include (see policy for complete list) Anti-Trust Outside Directorships Statewides,G&T's,CFC,NRECA,NRTC purchase their own coverage 'Pollution Pollution coverage is found under the All Risk Blanket Policy. Contractual Obligations Breach of Contract (i.e.Failure to make debt payment) Options to Consider: Capital Credit Defense Covers defense costs for claims involving capital credits ARECA+4 INSURANCESYEXCHANGE Alaska Energy Authority Bradley Lake Hydroelectric Project 07/01/2017 to 07/01/2018 Anchorage,AK 99503-2495 E Anti-Trust Defense Coverage Anti-competitive agreement to gain market dominance,price fixing or price discrimination Hl Years Retroactive Any loss occurring prior to the retro date would not be covered (This is a one-time charge for acts prior to the policy effective date) EZ charitable Entities Coverage Sub-limit for coverage of charitable entity directors 10 ARECAf4INSURANCESJEXCHANGE Premium Breakdown Alaska Energy Authority Bradley Lake Hydroelectric Project Anchorage,AK 99503-2495 ALL RISK BLANKET POLICY SECTION 1 Building and Personal Property Data Restoration Extra Expense Limit Accounts Receivable Valuable Papers Limit SECTION 2 General Liability -Personal Injury /Property Damage Pollution Employers'Liability/Stop Gap Medical Payments (per person /per accident) Auto Liability -Bodily Injury/Property Damage Personal Injury Protection /Other Personal Loss Comprehensive Collision Rental Reimbursement SECTION 3 Blanket Crime 07/01/2017to07/01/2018 Deductible Limit $75,000 $50,000,000 N/A $2,000,000 $1,000,000 $1,000,000 Deductible Limit $0 $1,000,000 N/A N/A N/A N/A N/A N/A Deductible Limit N/A $500,000 Total ARB Premium 11 Premium $360,006 N/A $11,856 $1,170 $580 Premium $0 Included N/A N/A N/A N/A N/A N/A N/A Premium $1,080 $374,692 jARECAINSURANCE EXCHANGE Alaska Energy Authority Bradley Lake Hydroelectric Project 07/01/2017 to 07/01/2018 Anchorage,AK 99503-2495 DIRECTORS,OFFICERS AND MANAGERS Deductible Limit Premium Limit of Liability $10,000 $5,000,000 $18,649 Fiduciary Limit of Liability N/A $0 Anti-Trust Defense Limit N/A $0 Capital Credit Defense Limit N/A N/A $0 Years Retroactive Coverage N/A $0 Anti-Trust Retroactive Coverage N/A $0 Charitable Entities Coverage N/A $0 Choice of Defense N/A $0 Total DOM Premium $18,649 12 JARECAINSURANCE EXCHANGE Policy Summary Alaska Energy Authority Bradley Lake Hydroelectric Project 07/01/2017 to 07/01/2018 Anchorage,AK 99503-2495 Protection Package Premium Property $373,612 Crime $1,080 Equipment Breakdown $169,479 Directors,Officers and Managers Liability $18,649 Fees and Assessments $0 Total Premium $562,820 13 ARECA INSURANCE EXCHANGE Alaska Energy Authority Bradley Lake Hydroelectric Project 07/01/2017 to 07/01/20183 Anchorage,AK 99503-2495 Premium Adjustment ARB i Crime Limit to N/A ($1,080) 14 ARECA INSURANCE EXCHANGE Alaska Energy Authority Bradley Lake Hydroelectric Project 07/01/2017 to 07/01/2018 Anchorage,AK 99503-2495 DISCLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE Coverage for acts of terrorism is included in the quoted policies.You are hereby notified that under the Terrorism Risk Insurance Act,as amended in 2015,the definition of act of terrorism has changed.As defined in Section 102(1)of the Act:The term "act of terrorism"means any act that is certified by the Secretary of the Treasury--in concurrence with the Secretary of State,and the Attorney General of the United States--to be an act of terrorism;to be a violent act or an act that is dangerous to human life,property,or infrastructure;to have resulted in damage within the United States,or outside the United States in the case of certain air carriers or vessels or the premises of a United States mission;and to have been committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion.Under the quoted coverages,any losses resulting from certified acts of terrorism may be partially reimbursed by the United States Government under a formula established by the Terrorism Risk Insurance Act,as amended. However,the quoted policies may contain other exclusions which might affect your coverage,such as an exclusion for nuclear events.Under the formula,the United States Government generally reimburses 85%through 2015;84%beginning on January 1,2016;83%beginning January 1,2017; 82%beginning on January 1,2018;81%beginning on January 1,2019 and 80%beginning on January 1,2020,of covered terrorism losses exceeding the statutorily established deductible paid by the insurance company providing the coverage.The Terrorism Risk Insurance Act,as amended, contains a $100 billion cap that limits U.S.Government reimbursement as well as insurers'liability for losses resulting from certified acts of terrorism when the amount of such losses exceeds $100 billion in any one calendar year.If the aggregate insured losses for all insurers exceed $100 billion, the coverage may be reduced. The portion of your annual premium for each policy,except Workers'Compensation coverage,that is attributable to coverage for acts of terrorism is $0,and does not include any charges for the portion of losses covered by the United States Government under the Act. If Workers'Compensation coverage is included as part of this proposal,please refer to the Workers' Compensation section of this proposal for the specific premium charge for terrorism coverage. 15 ARECAfAINSURANCESEEXCHANGE Glossary of Terms Alaska Energy Authority Bradley Lake Hydroelectric Project Anchorage,AK 99503-2495 Actual Cash Value Actual cash value,or ACV,means replacement cost less depreciation.For example,mobile equipment,trailers,semi-trailers or any self propelled vehicles or machines are covered for actual cash value. Accounts Receivable Pays collection expense and the loss of revenue due to the destruction of supporting records. Additional Insured A person other than the named insured who has limited protection under the terms of the contract.Usually,additional insureds are added by endorsement. Advertising Injury Liability Includes oral or written publication of material that slanders or libels a person or organization or disparages persons or organizations,goods,products or services,and others as defined under Advertising Injury.Includes unintentional copyright infringement. Aggregate Maximum amount the policy will pay in any given year,regardless of the number of losses incurred. All-Risk Covered property is insured against all direct physical loss except wear and tear,decay,mechanical breakdown,earth movement, flood damage,unexplained inventory shortages and steam boiler explosions. Anti-Trust Defense Anti-competitive agreement to gain market dominance,price fixing or price discrimination. Auto Liability Pays for bodily injury and property damage which occurs in the course of the operation of your fleet where you are found negligent. Auto Physical Damage Insures against loss resulting from damage to an auto owned by the insured. Blanket Contractual Liability Liability assumed through written contracts. Blanket Crime Coverage Provides for employee dishonesty,loss of monies and securities both on or off premises,counterfeit currency and money orders, and depositors forgery.No deductible applies to this coverage. Blanket Property Limit One total limit for all covered property regardless of location, including property of others for which you are responsible. 07/01/2017 to 07/01/2018 Bodily Injury The responsibility that may arise from injury to another person's life or health. Boiler &Machinery (Equipment Breakdown) A particular kind of property insurance covering generators, boilers,pressure vessels (fired and unfired)or pressure related equipment and machinery. Capital Contribution The sum paid and contributed to surplus. Claims-Made Liability coverage only if a written claim is made during the policy period or any applicable extended reporting period. Co-Insurance Arrangement the insurer and the insured share,that reduces the amount that will be paid when property is underinsured. Collision Covers physical damage to the insured's automobile (other than that covered under comprehensive insurance)resulting from contact with another inanimate object. Completed Operations Coverage pays when the insured is liable or bodily injury or property damage caused by work that the insured has completed. Comprehensive Auto coverage providing protection in the event of physical damage (other than collision)or theft of the insured vehicle.For example, fire damage or a cracked windshield would be covered under the comprehensive section. Contractual Liability Personal injury,property damage and advertising liabilities that you assume through written contracts, Counterfeit Currency An imitation of currency or bank notes,money orders etc. Crime Covers employee dishonesty,loss of monies and securities both on and off premises,counterfeit currency and money orders,and depositors forgery. Cross Suits Suits arising between insureds. Debris Removal Coverage Provides for expenses incurred to remove debris caused by a covered loss. 16 ARECA INSURANCE EXCHANGE Glossary of Terms Alaska Energy Authority Bradley Lake Hydroelectric Project Anchorage,AK 99503-2495 Deductible A portion of an insured loss that is not paid by insurance.The deductible is subtracted from the amount the insurer would otherwise be obligated to pay. Demolition and Increased Cost of Construction Costs to demolish the remaining portion ofadamaged building,or the increased costs incurred to meet current building,zoning or land use ordinances or laws. Depositors Forgery Loss due to forgery or alteration of financial instruments i.e.checks, drafts or notes. Devaluation of Real Estate Areduction in the market value of real estate of others at the time it is actually sold. Electronic Data Processing Loss or injury to electronic data stored in the insured's computer system. EME -Electromagnetic Field Any electric field,magnetic field,electromagnetic field, electromagnetic radiation generated or emitted by the electric charge in electricity or electrical current. Employee Benefit Administration Providing incorrect advice concerning an employee's pension plan or failure to enroll employees in a benefit program. Employee Dishonesty Fraudulent or dishonest act(s)committed by any employee acting alone or in collusion with others. Employment Practices Protection for an employer against suits made by the employees, former employees,or potential employees,i.e.discrimination, wrongful termination of employment,sexual harassment and other employment related allegations. Endorsements Written provisions used to amend the coverage in an otherwise complete policy. Entity The named corporation. Equity Account A member's financial interest in AIE. ERISA -Employee Retirement Income Security Act The Employee Retirement Income Security Act of 1974 (ERISA)isa federal law that pertains to pension and profit-sharing plans. 07/01/2017 to 07/01/2018 Extra Expense Necessary expenses incurred during a period of restoration that the insured would not have incurred if there had been no loss. Failure to Supply Protection for losses due to failure to supply your product because of negligence. Fellow Employee Protects an employee from a claim by a fellow employee. Fiduciary Legal responsibility to safeguard the assets of the beneficiaries. Fire Department Service Charge Service charge from a fire department that an insured may be liable for. Fire Legal Liability Liability coverage for damage to occupied property of others caused by fire or explosion due to insured's negligence. Fire suppression Coverage for federal lands,in case of fire caused by the insured. General Liability Coverage for an insured when negligent acts and/or omissions result in bodily injury,property damage and/or personal injury. Hired Auto Liability arising from the use of rented or borrowed auto on a short term basis.It replaces the liability coverage offered by auto rental agencies. Host Liquor Liability Covers Insured's liability for occasions where liquor is served. Hydraulic Equipment Truck-mounted hydraulic equipment (i.e.aerial devices and digger derrick units). Incidental Medical Malpractice Liability protection for rendering or failure to render First Aid or CPR. Insureds Insureds are the entity (corporation,organization or association, and any named subsidiary)and any individual who serves as a Director,Officer,Trustee,Employee or Volunteer of the entity, while acting in the scope of their employment. Livestock Any animals being raised for commercial purposes (including fish or birds). 17 ARECA INSURANCE EXCHANGE Glossary of Terms Alaska Energy Authority Bradley Lake Hydroelectric Project Anchorage,AK 99503-2495 Loss Inside Loss of money and securities by the destruction,disappearance or wrongful abstraction within the premises or any banking premises or similar recognized places of safe deposit,including secured payment drop boxes. Loss Outside Loss of money and securities by the destruction,disappearance or wrongful abstraction outside the premises while being conveyed by a messenger,messenger service or armored vehicle company,or in the living quarters of any messenger. Medical Payments Coverage For injuries to guests,customers or members of the public who are injured on the insured's premises regardless of fault or responsibility for the injury. Mobile Equipment Trailers,tractors,trenchers,forklifts,chippers etc.designed for off road use and any other equipment of a portable nature. Named Insured A person,business or organization specified by the policy. Newly Acquired Property Property acquired after the inception of the policy Non-Owned Automobile Protects the insured in the event that the insured is sued as a result of an auto accident in the employee's personal vehicle while on company business. Occurrence An accident,including continuous or repeated exposure to conditions,which results in personal injury,property damage or advertising injury which are neither expected nor intended by the insured. On Premises Pollutant Expense to extract pollutants from land or water at property of insured for a covered loss. Owners and Contractors Liability Coverage Injury or property damage arising out of operations of independent contractors where the insured might be held liable while the operations are in progress. Personal Injury Protection Pays basic expenses for an insured and his or her family in states with no-fault auto insurance.No fault laws generally require drivers to carry both liability insurance and personal injury protection coverage to pay for basic needs of the insured,such as medial expenses,in the event of an accident. 07/01/2017 to 07/01/2018 Pollution Clean Up and Removal Expenses to extract pollutants from land or water. Pollution Liability Immediate &suddenly accidental above ground pollution liability for damage to a third party's property. Products and Completed Operations Liability for damages as the result of a defect in a product sold or manufactured,or work that has been performed to completion. Property Buildings,contents,inventory,tools,mobile equipment,radio towers and substations (unless excluded). Property of Others Personal property in the care,custody and control of the insured. Punitive Damages Damages awarded by a court as a deterrent or punishment for a wrongful act. Railroad Liability Liability for construction or demolition operations within 50'of railroad property. Rental Reimbursement Coverage for renting a replacement vehicle when insured vehicle is out of service due to a covered loss. Replacement Cost Buildings,contents and inventory are insured for repair or replacement with like kind and quality,whichever is less. Retro-Coverage Covers a loss occurring prior to the effective date of the policy,but after the retroactive date. Right-of-Way (ROW) Strip of land that utilities use to construct,operate,maintain and repair their transmission and distribution line facilities. Self-Insured Retention That portion of a loss retained by the insured,similar to adeductible. Spraying Damages Loss due to spraying for weed control outside a right-of-way. Substations The fence and all the equipment contained inside the fenced area, designated as a substation that results in voltage changes from transmission voltages to distribution voltages and/or transmission voltages to subtransmission voltages. Umbrella Catastrophic liability coverage for suits that exceed the ARB Liability limit. 18 ARECAed|NSURANCESWSEXCHANGE Glossary of Terms Alaska Energy Authority Bradley Lake Hydroelectric Project 07/01/2017 to 07/01/2018 Anchorage,AK 99503-2495 Uninsured/Underinsured Motorist Covers an insured involved in a collision with an at-fault driver who does not have liability insurance,or does not have sufficient liability insurance. Valuable Papers and Records Coverage in the event that valuable papers or records of intrinsic value are damaged or destroyed. Watercraft Water going vessels Weatherization Insurance Errors or omissions in the administration of an Insured's Weatherization Program. Workers'Compensation Liability insurance requiring certain employers to pay benefits and furnish medical care to employees for on-the-job injuries,and to pay benefits to dependents of employees killed by occupational accidents. 19 JARECAINSURANCE EXCHANGE Proposal Signature Page Alaska Energy Authority Bradley Lake Hydroelectric Project 07/01/2017 to 07/01/2018 Anchorage,AK 99503-2495 Protection Package Expiring Premiums Renewing Premiums Property $343,869 $373,612 Crime N/A $1,080 Equipment Breakdown $147,373 $169,479 Directors,Officers and Managers Liability $17,737 $18,649 Total $508,979 $562,820 Please bind with the following optional coverages,limits or deductibles.(Check all that apply) ARB Crime Limit to N/A oO ($1,080) Please bind coverage for July 2017 as indicated above: Signature Date Printed Name Please return to: Crystal Enkvist ARECA Insurance Exchange cenkvist@alaskapower.org Fax (907)561-6206 20 ARECA Insurance Exchange =-/ALASKA c-ENERGY AUTHORITY Bradley Lake Hydroelectric Project Annual Stewardship Report Presented by: Crystal Enkvist Executive Vice President ARECA Insurance Management,Inc. May 30,2017INSURANCEEXCHIA'NGE' re rs She peer gee ee baRRRE AB REO a ASe i1+ eeea ena RahatHeewe anmaton Sa ¥ ee fARECA Insurance Exchange ;;oo : Thank you for taking the time to review ARECA Insurance Exchange's inaugural Bradley Lake Hydroelectric Project Stewardship Report and the important information it contains about your organization. Your member-owned insurance exchange undertook significant amounts of work in 2016 to offer additional coverage options for our subscribers.The new All-Risk Blanket Policy,or ARB,combines all of AIE's coverages into one package,with the option to tailor the policy to each of our subscribers'individual needs.We also added new coverages to our suite of options.AIE subscribers are now able to purchase crime coverage,a new product designed to insure against crime-related losses,and cyber liability insurance.Coverage for the use of drones will be offered later this year.We will notify you when it is available. This is AIE's first stewardship report for the Alaska Energy Authority and we are interested in hearing your feedback on its contents.Thank you for your subscribership in the ARECA Insurance Exchange. bey pikes dagen etre BR IES ate ee pecans BEM OT Omae erm eg Financial Stability Since 1995,ARECA Insurance Exchange has retained a financial strength rating of A-stable in A.M. Best's financial size category 5.Somewhat offsetting these positive rating factors are AIE's limited scope of operations,above-average underwriting expenses,and relatively high limits on retained losses in recent years,the latter subjecting the company's carried reserves to potentially significant adverse development.AIE's track record of producing favorable operating and net earnings while maintaining low underwriting leverage,as well as strong interaction with and retention of its members,combines to reduce these concerns.Furthermore,the property retention was reduced from $1 million to $750,000 in 2016,which is expected to soften future large losses.The outlooks reflect A.M.Best's expectation that AIE will maintain supportive capitalization over the near-to- medium term despite variability to earnings. ARECA maintains expertise within its specialization of providing commercial coverages to non- profit electric cooperatives and municipal utilities in Alaska.All written premium is derived within Alaska,with insureds located throughout the state,achieving a level of geographic dispersion not possible in smaller states.In addition,the proactive loss control measures implemented by the Exchange have helped to offset some ofthe disadvantages of operating in a restricted market. Safety and Loss Prevention Program ARECA Insurance Exchange's Director of Loss Control conducted safety and loss prevention assessments of the Bradley Lake Hydroelectric Project in April 2017 and )March 2016.The focus of AIE's program is on employee safety and the prevention of property loss. The AIE assessments included observations of employee safety-related work practices;physical inspections of the facility, fire suppression systems, maintenance records, equipment records;anda review of jurisdictional Se 8 inspections for pressurized ee ee equipment.Written reports mers :vided followin ei were provided fo g gh ey eo each inspection.PERS rn Seeds SeeiiehaeaetenartsSreeSeaeES Te Sey dgE Reinsurance Strength AIE's reinsurance coverage for 2017 is placed with reinsurers that have received A.M.Best ratings of A or higher.AIE's property,equipment breakdown,and earthquake and flood coverage remain with Zurich American Insurance,with additional catastrophic earthquake and flood coverage once again placed through JLT Re.AIE's property retention was lowered from $1,000,000 to $750,000 in the first quarter of 2016.AIE's casualty reinsurance coverage is placed with Federated Rural Electric Insurance Exchange and its reinsurers.In 2015,AIE reduced its workers'compensation retention from $1,000,000 to $500,000 per occurrence and added $5 million of clash cover.Both of these represent significant reinsurance program improvements and balance sheet protection for a company of AIE's size. Alaska Power Association Hydropower Work Group Through its membership in Alaska Power Association,a requirement of subscribership in AIE, Alaska Energy Authority staff participate in the trade association's newly established Hydropower Work Group.The group receives reports on regulatory,legislative and operational issues impacting hydropower in Alaska and shares information on project operations.The group also engages in discussions on regulatory compliance and shares information on best practices. Valuation Report AIE is in the process of finding an appropriate consulting firm for providing an updated valuation report on the Bradley Lake Hydroelectric Project.The Shaw Group,who did the previous two valuation reports,was acquired by CB&I.To date,the firm has not been responsive to repeated requests for information.Other firms are being contacted. whe pe tab. ine oo r ' 'pee,oyoyear.hiefaamtae>thse Here's your AIE staff -Alaskan Insurance Experts for Alaska Electric Utilities: Crystal Enkvist,Executive Vice President Crystal Enkvist,APR,is the Executive Director of Alaska Power Association and Executive Vice President of ARECA Insurance Exchange.She joined Alaska Power Association in November 2000 and served as its Director of Member &Public Relations until August 1,2014. She has also served as the Public Information Officer/spokesperson for Municipal Light &Power in Anchorage,Alaska.Before entering the electric industry,Enkvist was the Communications Director for the Anchorage Chamber of Commerce,a position in which she supported the business community of the city where she was born and raised. She was named one of "Alaska's Top 40 Under Forty”business leaders by the Alaska Journal of Commerce and Anchorage Chamber of Commerce in 1999. She has been involved in several non-profit organizations including the Renewable Energy Alaska Project,where she continues to hold an officer position on the board of directors. Enkvist holds a Master of Public Administration degree and a Bachelor's degree in Journalism and Public Communications from the University of Alaska Anchorage.She is an accredited member (APR)of the Public Relations Society of America. Brenda Mead,Chief Financial Officer Brenda is AIE's Chief Financial Officer.She is in charge of all financial aspects of the Exchange,and provides fiscal guidance to the Board of Directors and Trustees.A 13-year employee of AIE, Brenda began as an accountant in 2004 and was promoted to CFO in 2009.Before AIE,she was an accountant for QA Services and Alaska Serigraphics in Anchorage.Brenda holds a Bachelor's degree in business administration with a focus in tourism from the University of Alaska Fairbanks. Susan Kosinski,Claims Manager Susan Kosinski is AIE's Claims Manager.She handles all claims and claims questions from AIE subscribers.A 26-year veteran of the insurance industry,Susan has held a Multiline Insurance Adjuster's license since 1993.She has worked as a claims examiner,a senior claims examiner,a claims supervisor and now as a claims manager. Susan holds multiple certifications and has years of professional development. Melbourne "Hutch”Hutchison,Director of Loss Control and Prevention Mel "Hutch”Hutchison,a 36-year veteran in the electric utility industry,has been Director of Loss Control since August 17,2015. Hutchison previously worked as a high voltage lineman in the United States Air Force,a safety specialist,manager of revenue metering, manager of maintenance and operations,and manager of safety and industrial hygiene for Chugach Electric Association.Hutch also worked as a systems operations supervisor (power dispatcher)for Homer Electric Association. rr er ee er oe Moe Angie Moua,Claims Assistant Angie Moua is a dedicated insurance professional who has been with ARECA Insurance Exchange for more than three years as a claims assistant.Prior to working on claims,she was an office manager for an insurance agency.She is currently working towards her Bachelor's degree at UAA in the health science field with hopes of one day pursuing a career in the medical field.In her free time,she enjoys running,volunteering,and spending time with her family.As a first-generation Hmong-American,she works hard to help promote,preserve,and educate the Hmong people on how to relate and adapt to the mainstream culture and society. Michael Rovito,CCC,Director of Member and Public Relations Michael Rovito is Director of Member and Public Relations for Alaska Power Association and ARECA Insurance Exchange.In this role,Michael is responsible for directing member communications,government relations,and public relations as it relates to the electric utility industry in Alaska.Prior to APA and AIE,Michael spent four years as a chief-of- staff in the Alaska Senate and two years as a legislative liaison for the Knik Arm Bridge and Toll Authority.Prior to that,he was a reporter at the Mat-Su Valley Frontiersman.Michael is a Certified Cooperative Communicator,earning the accreditation in 2016. Lisa Heikes,Loss Control and Underwriting Assistant Lisa Heikes is AIE's Loss Control and Underwriting Assistant,providing support and back-up for two important divisions of AIE.Prior to coming to AIE,Lisa spent four years at Alaska National Insurance Company in the Premium Auditing Department,as a claims assistant and an underwriting assistant.Before entering the insurance workforce,Lisa gained valuable management experience as the office manager for a large mortgage company in Alaska and as an assistant manager in the hospitality industry.Lisa is the lead staff on AIE policy renewals and subscriber assistance. a , *4 F *a -en * é a ?Roe '/ |i a »od : oid a . :_i * ° TS meee -%' } JF, F :i anette me Aa AREGA\ INSURANCE: EXCHANGF. ante ra Daas,cay o Pan we Everything comes down to the bottom-line.When managers and boards are considering insurance options,they look at the financial impact on their utility. That's part of the beauty of ARECA Insurance Exchange.We can provide another stream of income for our subscribers.Through our dividend program,we return our margins to you,our member- owners.Through the years,some of our members have received more than $1 million of dividend payments during their tenure in AIE -their share of the profits from the company they own.Over the past 10 years,AIE has returned more than $10.5 million to our subscribers through dividends. How it works ARECA Insurance Exchange strives to operate as efficiently as possible,combining quality insurance coverage and services with sound fiscal management. Along with providing insurance,we also return our margins to the subscribers on an annual basis (during years of returns).To date,AIE has had more profitable years than years in which the Exchange took a loss.The combination of a financially stable insurance exchange and a loss control program that works to minimize losses to our subscribers has produced excellent results historically. ND Jienoner | profits and losses .| Below is a table showing the profit allocations to AEA Bradley Lake's (AEA-BL)Subscriber Savings Account (SSA)and cash distributions received during the past five years: ALLOCATION TOSSA |$154,633 $157,356 $160,554 $113,620 $72,853 $977,753 CASH DISTRIBUTION $22,145 $20,689 $25,865 $24,596 $10,892 $167,594 The All-Risk Blanket Policy Throughout 2016,the staff of AIE worked diligently to create a policy that blends all the insurance products our subscribers have come to rely on into one policy.The ARECA Insurance Exchange All- Risk Blanket Policy carries out our goal of offering the broadest coverage at the best possible cost. At the same time,our subscribers will be able to increase their coverage through new products that address new risks to electric utilities. The All-Risk Blanket Policy,or ARB,wraps property,liability,auto,and crime coverage into one package,and it's adaptable to meet the needs of each of our subscribers.AIE subscribers can choose to place all their coverage under the ARB,or the ARB can be modified to reflect only the coverage(s)requested. The ARB is truly a one-stop shop for the insurance coverage Alaska's electric utilities need,and they are backed by a knowledgeable,Alaska-based staff who knows the industry inside and out. New Coverage -Cyber Liability The world is an interconnected place,and sometimes that makes for a dangerous situation.Cyber- attacks are becoming an all too common threat in the 21st Century,and some attacks have targeted power plants,SCADA systems and even front-office computers.Our subscribers can be significantly impacted by cyber-attacks,so AIE is offering a new policy that provides coverage for such an event. The cyber liability coverage will offer subscribers a financial backstop against the menace of cyber intrusions,which come from all parts of the world thousands of times a minute.Many cyber criminals don't have the intent to steal anything,they simply want to cause disruption and chaos. IINSU RANCE 1D.@Ons U\INK ODS ARECA Insurance Exchange 703 West Tudor Road,Suite 101 Anchorage,AK 99503 www.alaskapower.org ta en teea. Nee!tye the ewan Bradley Lake Project Management Committee Meeting Tuesday,May 30,2017 Agenda Item:8B -Approval of Motorized Land Access Permits MOTION:Move that the Bradley Lake Project Management Committee approve the BPMC and Operator limited Access Permits and proceed forward with issuing to qualified applicants. Move: Second: BRADLEY LAKE HYDROELECTRIC PROJECT BPMC ACCESS PERMIT This Access Permit is made this day of ,2017, by and between the ALASKA ENERGY AUTHORITY (AEA),a public corporation of the State of Alaska,whose business address is 813 West Northern Lights Blvd., Anchorage,Alaska 99503,on behalf of the Bradley Project Management Committee (BPMC),and whose address is ,(Permittee). THIS BPMC ACCESS PERMIT DOES NOT AUTHORIZE ACCESS TO ANY PROJECT AREAS. BEFORE ENTERING THE PROJECT AREA,THE PERMITTEE MUST OBTAIN A BRADLEY LAKE FACILITY LIMITED ACCESS PERMIT FROM THE BRADLEY LAKE PROJECT OPERATOR,HOMER ELECTRIC ASSOCIATION,INC.(HEA). 1.Approval for Issuing Access Permit: AEA,on behaif of the BPMC,approves the HEA as Bradley Lake Project Operator issuing a Bradley Lake Facility Limited Access Permit to Permittee,subject to each the terms and conditions contained in this BPMC Access Permit.Permittee accepts and agrees to abide by the terms and conditions contained in both this Access Permit and the Bradley Lake Facility Limited Access Permit issued by HEA. 2.Location of the Permitted Access: The Bradley Lake Facility Limited Access Permit shall establish the location of allowed access to the Bradley Lake Project areas. 3.Term,Termination: This Access Permit shall continue until (insert date),unless terminated earlier.AEA may terminate this permit upon giving written notice to Permittee and HEA. 4.Responsibility for Liability and Damages: Permittee assumes all responsibility,risk and liability for all activities of Permittee,its employees,agents,invitees,contractors,subcontractors,or licensees directly or indirectly conducted in connection with this permit,including environmental and hazardous substance risks and liabilities,whether accruing during or after the term of this permit. a)Permittee shall defend indemnify,and hold harmless the Bradley Lake operator,the BPMC,Utility members of the BPMC,the Alaska Energy Authority,the State of Alaska,and their respective employees,and agents (collectively "Indemnified Parties”)from and against any and all suits,claims, actions,losses,costs,penalties,and damages of whatever kind or nature, Rev:5/2017 Page 1 of § b) including all attorney's fees and litigation costs,arising out of,in connection with,or incident to any act or omission by Permittee,its employees,agents, invitees,contractors,subcontractors,or licensees,unless the sole proximate cause Of the injury or damage is the negligence or willful misconduct of the Indemnified Parties.Within 15 days Permittee shall accept any such cause or action or proceeding upon tender by the State.This indemnification shall survive the termination of the permit. Permittee shall be liable to the Alaska Energy Authority,the State of Alaska, the Bradley Lake Operator,the BPMC,Utility members of the BPMC,or any of their respective their respective employees,and agents,for any liabilities, damages,injuries,costs or expenses incurred by which in any way arises from or is connected with any activities under this Permit whenever the liability,damage,cost or expense results from breach of the terms or conditions associated with this Permit,or from any wrongful or negligent act of Permittee,its agent or invitees. Prior to receiving permit,Permittee shall provide proof of auto liability insurance to Alaska Energy Authority with minimum coverage limits of $300,000. 5.Limitations on Access: a) b) d) Neither this Access Permit nor the Bradley Lake Facility Limited Access Permit authorizes any activity other than crossing the Bradley Lake project area. Access within the project area is strictly limited to the routes and areas designated by the Bradley Lake Operator.Other uses of the permitted area shall require additional approval prior to making any such modifications. This Access Permit and the Bradley Lake Facility Limited Access Permit apply only to access within the Bradley Lake Project area,and do not grant access over adjacent property necessary to reach the Bradley Lake Project area.The Permittee shall obtain any necessary permission to access areas outside the Bradley Lake Project area from the appropriate landowner or land managing agency. Permittee acknowledges that the Bradley Lake Operator may regulate Permittee's access to facilitate the operation and maintenance of the Bradley Lake Project and safe access.For these purposes,the Bradley Lake Operator may provide specific instructions to Permittee,or may provide warnings, barricades,or other safety measures.Permittee agrees to obey all such access and vehicular traffic instructions,restrictions and warnings. Permittee shall comply with all measures in the Bradley Lake Hydroelectric Project FERC Mitigation Plan,dated November 1985,including any future changes. Rev:5/2017 Page 2 of § e) f) No new access trails or roads are authorized without the express written permission of the Alaska Energy Authority. All stream-crossing activity is subject to AS 16.05.870.Stream-crossings shall comply with the State of Alaska,Department of Fish and Game,Fish Habitat General Permit that covers winter crossings of frozen water surfaces within the Kenai Peninsula Borough. 6.Special Stipulations: a) b) d) The Permittee shall comply with the requirements and stipulations included in this permit and all applicable federal,state,and local laws,regulations,rules and orders,existing or hereafter adopted,affecting in any manner,operation on the permit.Permittee shall ensure compliance by its employees,agents, contractors,subcontractors,licensees,or invitees. The authorizing of this Permit is subject to the express condition that the exercise of the rights and privileges granted under this Permit will not unduly interfere with the operation,maintenance,or management of the Bradley Lake Hydroelectric Project.If any undue interference arises,the Permittee agrees and consents to the Bradley Lake Operator suspending any or all access activities allowed in connection with the Permit. All activities shall be conducted in a manner to minimize disturbance to the surface-protecting vegetative mat.All areas where soils are damaged must be restored consistent with the natural terrain features and revegetated. Harassment or molesting of wildlife or destruction of known habitat is prohibited.Wildlife shall not be "herded,buzzed”or otherwise harassed through use of vehicles. The Alaska Historic Preservation Act (AS §41.25.000)prohibits the appropriation,excavation,removal,injury or destruction of any historic, prehistoric,or archeological resources of the State.No historic site, archeological site,or camp,either active or abandoned,shall be disturbed in any manner,nor shall any item be removed from there.Should cultural or paleontological resources be discovered as a result of this activity,work which would disturb such resources shall be stopped,and the State Historic Preservation Office shall be contacted immediately. Fuel and hazardous substances.The Permittee may not store or transport hazardous substances or fuels in containers under the Access Permit or the Bradley Lake Facility Limited Access Permit.Permittee is responsible for preventing spillage and contamination of contiguous land and water as well as cleaning up any oil or other pollutants that result from activities associated with this permit. Rev:5/2017 Page 3 of 5 "Containers"means any item,which is used to hold fuel or hazardous substances.This includes tanks,drums,double-walled tanks,portable testing facilities,fuel tanks on small equipment such as light plants and generators,flow test holding tanks,slop oil tanks,bladders,and bags. "Hazardous substances"are defined under AS 46.03.826(5)as (a)an element or compound which,when it enters the atmosphere,water,or land,presents an imminent and substantial danger to the public health or welfare,including fish, animals,or vegetation;(b)oil;or (c)a substance defined as a hazardous substance under 42 U.S.C.9601(14). g)Spill Notification.The Permittee shall immediately notify the Department of Environmental Conservation (DEC)by telephone,and immediately afterwards send DEC a written notice by facsimile,hand delivery,or first class mail, informing DEC of:any unauthorized discharges of oil to water,any discharge of hazardous substances other than oil;and any discharge or cumulative discharge of oil greater than 55 gallons solely to land and outside an impermeable containment area.If a discharge,including a cumulative discharge,of oil is greater than 10 gallons but less than 55 gallons,ora discharge of oil greater than 55 gallons is made to an impermeable secondary containment area,the Permittee shall report the discharge within 48 hours, and immediately afterwards send DEC a written notice by facsimile,hand delivery,or first class mail.Any discharge of oil,including a cumulative discharge,solely to land greater than one gallon up to 10 gallons must be reported in writing on a monthly basis.The posting of information requirements of 18 AAC75.305 shall be met.Scope and Duration of Initial Response Actions (18 AAC 75.310)and reporting requirements of 18 AAC 75, Article 3 also apply. The Permittee shall supply DEC with all follow-up incident reports.Notification of a discharge must be made to the nearest DEC Area Response Team during working hours:Anchorage (907)269-7500,fax (907)269-7648; Fairbanks (907)451-2121,fax (907)451-2362;Juneau (907)465-5340,fax (907)465-2237.The DEC oil spill report number outside normal business hours is (800)478-9300. h)Every reasonable effort shall be made to prevent,control,or suppress any fire in the operating area.Uncontrolled fires shall be immediately reported to the US Forest Service and to AEA.Any controlled burning will require appropriate burning permits obtained prior to this activity from the Dept.of Natural Resource,Division of Forestry and the Department of Environmental Conservation. i)All eagles,their eggs,and their nests shall be protected by the Permittee from disturbance and/or destruction.The Permittee will not allow human disturbance or operational activity to jeopardize the continued existence of Rev:5/2017 Page 4 of 5 raptors and nesting activity.The Permittee shall consult with the U.S.Fish and Wildlife Service regarding operational activities in close proximity to raptor nests. 7.Assignment by Permittee: Permittee shall not assign or transfer its interest in this Access Permit without the prior written consent of AEA on behalf of the BPMC. 8.Severability: If any provision of this Access Permit is determined to be unenforceable or illegal for any reason,the remaining provisions of this Access Permit shall not be affected by that illegality or unenforceability. 9.Waivers: Any waivers at any time by any party to this Access Permit of its rights with respect to a default or any other matter arising under or in connection with the easement shall not be deemed a waiver with respect to any subsequent default or matter. IN WITNESS WHEREOF,AEA on behalf of the BPMC and Permittee have caused their duly authorized representatives to sign this Agreement. ALASKA ENERGY AUTHORITY,on behalf of the BPMC BY: TITLE: PERMITTEE BY: TITLE: Rev:5/2017 Page 5 of 5 S40 Bradley Lake Facility Limited Access Permit Owner Operator Alaska Energy Authority Homer Electric Association 813 W Northern Lights Blvd 3977 Lake Street Anchorage,AK,99503 Homer,AK 99603 (800)315-6338 (907)235-4444 Date of request Annual Permit -Expires one year from date issued Access Permit must be carried at all times while on the property Failure toL_|present the permit will result in denial of access. Prior to access,notification must be provided to the facility operator by calling the Main Control Room at 907-235-4444 Name of Primary Responsible Person Street Address '| City State Phone number Purpose of your travel,planned activities,and number of people in your party. Responsible party must read and check mark each permit requirement.Signing the permit indicates you understand,and agree to comply with all permit requirements. {[-]Permit holder possesses a valid Access Permit issued by the Alaska Energy Authority on behalf of the Bradley Project Management Committee,and which is on file at HEA.Permit holder must comply with all terms and conditions contained within the permit. {_]Unauthorized motorized vehicles are not permitted.Motorized vehicle use if authorized by the Alaska Energy Authority is not permitted beyond mile marker 2-1/2 (2.5). L)Any motorized travel must comply with open areas in the attached map. [_]Permit holder assumes all risk,liability,and responsibilities for use during facility access, including roadways,airport runway,bridges,and all facility authorized areas. [J Permit holder must notify plant personnel prior to crossing or accessing the project airport runway by calling the plant control room at 907-235-4444.Airport access is not permitted when runway lights and/or flashing warning lights are activated. Bradley Facility Authorized Permit Holder Signature:Agent Signature Date permit issued OL }|| Bradley Lake Project Operator Access Permit Motorized Travel Map wee FM ae 3S VN AR ga Tee oe at AW-Not Eya”"7 Te"es vy A”we A,'on "a Oo tf 4 x {J 4 ,iM,a 4 tam 4taKLowGCLpybbeyon.see '%a afGoTewonaFea"Caen ,jf et?TAILRACE teh Os.i..|=14 |4 7 Nwwmel caeRUNWAY"4 '""LANDING re i Me=St POWERHOUSE47RayBARGEDOCK,7 CONTRO;BUILD oa Pe we],rie sawPUBLIC>ra iran PBOATDOCK"A us NEI"4 WETLANDS LIMIT SS4CAMPSITE : 2 |ad 14 rr PROJECT BOUNDARY WS (WATERFOWLaKNESTINGAREAS | SF! ere tn Gere ane PROSE BOUNDARY_.é ---7 4%in f _¢a8 .oe oo P,WAP ae fo.bar Ye *oo.; _._ ,AK wero eK Re, .av eee ---/ F .CAMP\pa te EO,xC-E-NW 1:64 CNWIB,”°.°f -47 Mite,5.NANG 111024 aKeeNU"NO MOTOR EO Ly™\.her Pile eo TRAV L THIS meDRROWPIT==J BN E WoemlbAeeateOw4,"elaSIDE!asC-W 1/16 i,wy iron ao :wROW PIT sie aK a BRIDGE 1 x?.:Ai Trai f cot f ,'4 , DIKE-t9'SE 16 SU 2 ea.NAD TE ERTS CSi6 1 SHB "1 f \J QUARRY siTE 7 \somPROJECTBOUNDARYme Route through project facility and runway area.Travel shall stay on route between North side of powerhouse and West end of runway. e Nostopping in project facility or runway area unless flagged by site personnel. e®Speed limit on roads and runway is limited to 10 mph. e Travel down runway must be on side of runway. e Verify runway lights off before proceeding.If lights on do not proceed. e Noassistance by site personnel. e Nomotorized travel up Bradley Lake road past mile 2.5. Bradley Lake Project Management Committee Meeting Tuesday,May 30,2017 Agenda Item:8C -Approval of Revised Allocation and Scheduling Procedures MOTION:Move that the Bradley Lake Project Management Committee approve the revised Allocation and Scheduling Procedures to have an effective date of May 30,2017. Move: Second: BRADLEY LAKE HYDROELECTRIC PROJECT ALLOCATION AND SCHEDULING PROCEDURES As Revised by the BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE On Date May 30,2017 These Procedures dated May 30,2017,have been approved and adopted by the Bradley Lake Project Management Committee to govern the allocation and scheduling of electric capacity and energy available to the Purchasers from the Project under the Project Power Sales Agreement. Section 1.Definitions.For the purposes of these Procedures,the following definitions apply; (a)AEA or Authority.The Alaska Energy Authority (b)AEG&T.The Alaska Electric Generation and Transmission Cooperative,Inc. (c)Basic Agreements.The agreements entered into an amended from time-to- time for the sale,purchase and transmission of Bradley Lake power and includes the Power Sales Agreement,the Chugach Services Agreement,and the HEA Transmission Sharing Agreement. (d)Bradley River Minimum Flow Releases.Those minimum amounts of water (flows)that are required to be released into the Bradley River under the FERC license. (e BPMC.Bradley Project Management Committee established pursuant to the Power Sales Agreement. (f)Chugach.The Chugach Electric Association,Inc. (g)Chugach Services Agreement.The Bradley Lake Hydroelectric Project Agreement for the Wheeling of Electric Power and Related Services Dated December 8, 1987,between Chugach and ML&P,HEA,GVEA,MEA,SES and AEG&T providing for Chugach's transmission and other services. (h)Dispatch Agreement.The agreement between the Authority and Chugach for the day-to-day operations of the project. (i)Dispatcher.Chugach or its successor. (j)Effective Date.September 1,1991,the date of Commercial Operation of the Project as provided in the Power Sales Agreement. (k)Energy Account.The account maintained by the Dispatcher to record the amount of Initial Project Energy and Revised Project Energy each Purchaser is entitled to schedule under these procedures. (I)FERC License.License No.8221 that has been issued by the Federal Energy Regulatory Commission to the Authority for the construction and operation of the project. (m)Fiscal Year.As defined in Section 1(r)of the Power Sales Agreement. (n)Forced Outage.An outage due to any failure of a generating facility, related auxiliaries,or a transmission facility which a Purchaser relies upon to supply firm power to meet its firm load obligation and which causes a deficiency in power resources available to meet the Purchaser's load. (o)GVEA.Golden Valley Electric Association,Inc. (p)HEA.Homer Electric Association,Inc. (q)HEA Transmission Sharing Agreement.The Bradley Lake Hydroelectric Project Amendment to Agreement for Sale of Transmission Capability dated December 8,1987 and as amended March 7,1989,for wheeling of power through a portion of the HEA system from Bradley Junction to the Soldotna Substation entered into by and among Chugach,GVEA,ML&P and AEG&T. (r)Initial Project Energy Allocation.|The amount of Project Generation expected during the Project Water Year,as computed prior to the beginning of the Project Water Year pursuant to Section 4 (c). (s)MEA.Matanuska Electric Association,Inc. (t)ML&P.Anchorage Municipal Light and Power. (u)Net Allocation.The monthly energy from the Project available to a Purchaser in establishing the Initial Project Energy Allocation and Revised Project Energy Allocation under Section 4 from the beginning of the Project Water Year through the end of the current month less the total Project Generation for that Purchaser from the beginning of the Project Water Year to date plus and debits or credits from the previous Project Water Year. {v)O&DCommittee.The Operation and Dispatch Committee appointed by the BPMC to address technical issues related to the operation and dispatch of the Project. (w)Pending Spill Pending Spill is defined as when the reservoir level of Bradley Lake reach's 1,175'. (x)Percentage Share.The fraction expressed as a percent and set forth for each Purchaser in Exhibit D of the Power Sales Agreement. (y)Power Sales Agreement.The Agreement for the Sale and Purchase of Electric Power from the Project entered into by and among the Authority and the Purchasers dated December 8,1987 and as may be amended from time-to-time. (z)Procedures.These Allocation and Scheduling Procedures. (aa)Project.The Bradley Lake Hydroelectric Project as described in Exhibit C of the Power Sales Agreement. (bb)Project Capability.|The amount of electric power capable of being produced by the Project at any given time taking into account system conditions,equipment and Project transmission availabilities and limitations. (cc)Project Capacity.The amount of electric power capable of being produced by the project at the then current reservoir level with all generating and transmission facilities of the Project fully operational. (dd)Project Generation.The amount of energy produced by the project recorded continuously and accumulated on an hourly basis. (ee)Project Reservoir.|The body of water held behind the dam of the Project capable of being utilized for Project Generation,Bradley River Minimum Flow Releases, and Project Spill. (ff)Project Spill.The water released from the Project Reservoir into the Bradley River in excess of Bradley Minimum Flow Releases and in excess of that which has already been accounted for in the Reservoir Operation Mode. (gg)Project Water Year.The twelve month period starting on June 1 and ending May 31. (hh)Prudent Utility Practice.The practice defined in Section 1(x)of the Power Sales Agreement. (ii)Purchaser.Purchaser means,as of any particular time,the Municipality of Anchorage d/b/a Municipal Light and Power,Chugach Electric Association,Inc.,Golden Valley Electric Association,Inc.,the City of Seward,and the Alaska Electric Generation & Transmission Cooperative,Inc.("AEG&T”).The term "Purchaser”includes Homer Electric Association,Inc.,and Matanuska Electric Association,Inc.,only to the extent specified in Section 30 of the Power Sales Agreement. 4 (ji)Reservoir Operation Model.The model described in Exhibit A used to determine the Initial Project Energy and Revised Project Energy. (kk)Revised Project Energy.The amount of Project Generation for the remaining portion of the Project Water Year calculated under Section 4(d)if actual operating conditions significantly change the expected amount of total Project Generation for the Project Water Year from previous forecasts. (II)SES.Seward Electric System. (mm)Spinning Reserves.The amount of on-line capacity available from the Project from time-to-time which is available to meet Purchases,minus the actual project output in accordance with Section 9 of these Procedures. (nn)Termination Date.The date the BPMC adopts revised procedures pursuant to the terms of the Power Sales Agreement which replace these Procedures. Section 2.Term.These Procedures shall become effective up the Effective Date and shall continue in force until the Termination Date. Section 3.Exhibits.The following exhibits are incorporated by reference in these Procedures. (a)Exhibit "A”,Description of Reservoir Operation Mode. (b)Exhibit "B”,Bradley Lake Output and Kenai Export Limits (c)Exhibit "C”,Spill Volume Calculation over Spillway (d)Exhibit "D,Example of Water Allocation Calculations Section 4.Project Allocations. a)General.Nothing in these Procedures shall cause the Project to be operated or maintained in a manner that is not consistent with Prudent Utility Practice nor shall it be operated or maintained in a manner that is not consistent with the FERC license and other permits and licenses.The BPMC recognizes that the method of Operating the Project may change from time-to-time in order of accommodate modifications to such licenses and permits. b)Relationship to the Basic Agreements.In the event that any provisions in these procedures conflict with the provisions in any of the Basic Agreements,the provisions in the Basic Agreements shall prevail. c)Initial Allocation.The initial Project Energy shall be determined prior to the beginning of each Project Water Year based on known operating limitations,forecasted estimates of runoff available from the watershed by the National Weather Service (NWS)for the 50%exceedance probability and/or the mean monthly discharge (depending upon availability of the information),and other pertinent factors,and in a manner consistent with the following: i)The project participants shall maintain a coordinated Railbelt maintenance schedule listing all major generation and transmission assets of each of the Purchasers. ii)Prior to the beginning of the Water Year the Dispatcher shall transmit to the Purchasers a preliminary estimate of the amount of capacity and preliminary Initial Project Energy Allocation available for the upcoming Project Water Year, including and Purchasers Pond carried over from the previous Water Year. iii)Following receipt of the preliminary forecast each Purchaser will submit to the Dispatcher its forecasted monthly use of its Percentage Share of the Initial Project Energy Allocation.The monthly energy requirements will be based on the expected project energy,as estimated under Section 4(c)(ii),Railbelt maintenance schedule as established in Section 4(c)(i). iv)Based on the total monthly energy usage from the Project for all the Purchasers,the Dispatcher shall perform an analysis of the projected inflows and Purchasers usage and determine if project spill or pending spill conditions will be triggered. v)If the results of the analysis performed above show that Spill or Pending Spill conditions will be trigger the Dispatcher shall work with the Purchasing utilities to generate revised schedules such that Spill and Pending Spill conditions will not be triggered. d)Revised Allocation.Each month the Dispatcher shall estimate the amount of energy available from the Project for the remainder of the Project Water Year and determine f) the amount of energy which should be added or subtracted from each Purchaser's Net Allocation of energy for each month in the remainder of the Project Water Year.The Dispatcher shall determine the amount of Revised Project Energy for each Purchaser in the following manner: (i)The Dispatcher shall transmit to the Purchasers a preliminary estimate of the revised Project Energy for the remainder of the Project Water Year and the Project Generation to date. (ii)Each Purchaser shall be allocated its Percentage Share of any difference between the new Revised Project Energy,and the in effect estimate of Project Generation for the Project Water Year.If the result of such allocation is negative,the Purchasers Net Allocation shall be reduced by such amount in the current Project Water Year. (iii)|The Purchaser shall submit to the Dispatcher its forecasted monthly requirements of the Revised Project Energy. {iv)Based on the total monthly requirements of Revised Project Energy,the Dispatcher shall perform the Reservoir Operation Model as outlined to verify the Revised Project Energy. (v)If the results on the Reservoir Operation Model performed show the Revised Project Energy to be different than the assumed in Section 4 (d)(i)or there is potential for Project Spill,the Dispatcher and the Purchasers shall work together in revising monthly energy requirements such that Revised Project Energy and the sum of the Purchasers monthly energy requirements assumed for the Reservoir Operation Model are equal to one another and Project Spill potential is minimized. Status of Energy Account.As soonas practicable after the end of each month,the Dispatcher shall provide each Purchaser an accounting of the current amount of energy remaining in the reservoir pond as well as forecast for the remainder of the water year. This total will provide the purchaser with expected project energy available through the end of the water year.If an event occurs or conditions change during any month which requires the Dispatcher to increase or decrease the amount of Revised Project Energy available to a Purchaser or increases the potential of spill,the Dispatcher shall use its best efforts to provide each Purchaser an interim accounting of the Initial Project Energy or Revised Project Energy and the amount of such energy available which could be subject to spill in the next 30 days. Review of Reservoir Operation Model.The methodology and inputs to the Reservoir Operation Model shall be reviewed by the Operation and Dispatch Committee at least every five (5)years and the recommendations for changes to the Model provided to the BPMC.The Reservoir Operation Model shall be modified,if required,to reflect the changes to the permits and licenses that the Project is operated under.The BPMC shall have the right to approve any changes made to the Reservoir Operation Model. Section 5 Project Scheduling. (a)General.Each Purchaser shall have the right to schedule during any month an amount of Project Generation not to exceed its Net Allocation plus any pond carried over from previous months of the previous water year subject to any Purchasers capacity or transmission constraints. (b)Schedules.The Purchasers day ahead schedule shall be submitted to the Dispatcher no later than 10:00 AM the previous day for the next day's schedule the Dispatcher shall review all schedules and notify the Purchasers if any changes are required.Changes during the day are allowed to the current days schedule subject to plant and transmission limitations.The Dispatcher shall provide next day's schedule including all participants schedule for the day.Revisions to the schedule will be sent to the participants in real time.The Dispatcher shall provide to each participant their hourly use in MWh's from the project. {c)Minimum Scheduling.A Lower limit of 2 mw per unit is required. Purchasers are not required to schedule energy in any hour to receive their share of project spin assuming that the units are at minimum or in condense. (d)Minimum Operations.If,due to operating constraints included in the various permits and licenses that the project is operated under,the Project is required to operate in a manner such that Project Generation is greater than that amount scheduled by all the Purchasers,the amount of Project Generation in excess of that amount scheduled shall be allocated on a pro rata basis to each Purchaser based on its Percentage Share.No Purchaser shall be obligated to take more than its Percentage Share of Project Capability. (e)Reduction in Schedules.If the combined scheduled Project Generation is greater than Project Capability or transmission capacity in any given hour,each Purchasers request shall be reduced during that hour in the following manner: (i)For those Purchasers who have scheduled more Project Generation than their respective Percentage Shares of Project Capability in any hour,the amount scheduled for such Purchasers shall be reduced on a pro rata basis based on the (f) (g) amount scheduled Project Generation exceeds Project Capability.The amount of scheduled Project Generation for any Purchaser shall not be decreased pursuant to this Section 5 (e)(i)to an amount less than each respective Purchasers Percentage Share of Project Capacity. (ii)If after making such reductions in Section 5 (e)(i)the combined scheduled Project Generation still exceeds Project Capability in any hour,Project Generation for each Purchaser scheduling Project Generation in such hour will be reduced on a pro rata basis based on the respective Percentage Shares. Schedule Modifications. (i)The Purchaser,subject to the limitations of the Basic Agreements,shall have the right to notify the Dispatcher and schedule on an immediate basis an amount of Project Generation for its use different than its schedule in effect for the day week.Such revisions can be upward or downward. Schedules above Participants Share. (i)A Purchaser,upon obtaining permission from another Purchaser that is not scheduling all of its Participant Share of Project Capability,may schedule its Net Allocation or Revised Project Allocation by using Project Capability of such other Purchaser.The scheduling by a Purchaser of another Purchasers Project Capability shall include all the benefits,rights and obligations related to such schedule as provided in this Section. (ii)The scheduling Purchaser,as compensation for the right to schedule a portion of its Net Allocation or Revised Project Allocation by use of another Purchasers share of Project Capability in any hour,shall be obligated to pay such other Purchaser at $5/MW (S.005/kW)for each hour that such Purchasers share is used.This obligation to purchase Project Capability shall remain in effect even under conditions where one or more Purchases may not have access to their Project Capability due to system constraints.Project capability purchase obligations shall be suspended during declarations of pending spill as outlined is Section 5 (h). (iii)|The Dispatcher shall establish an account for each Purchaser in which the debits and credits (in MW's)for use of a Purchasers share of Project Capability under Section 5(b)will be accounted.These debits and credits will be paid at the end of each month between Purchasers,or under terms mutually agreed by the affected Purchasers. (h) (iv)Each Purchaser is allocated by ownership share Project Energy for a given Project Water Year.The Purchaser can utilize their allocation with the respective Project Water Year or under-utilize their allocation for later use (ponding). However,no Purchaser shall knowingly schedule above their allocation or borrow in the next Project Water Year without the approval of another purchaser with pond. If a Purchaser has used their allocation by May 31,then scheduling in the next Project Water Year may be limited to forecast inflows for June of that year.Any Purchaser may loan,borrow or sell ponded water by agreement between the affected Purchasers. Scheduling During Periods of Pending Spill. (i)Whenever the reservoir level reaches an elevation of 1,175 feet,the Dispatcher shall notify each Purchaser that the reservoir has reached Pending Spill and spill may occur unless additional energy is scheduled by the Purchasers. (ii)Whenever the Dispatcher declares that the Project is in pending spill condition,the Purchasers,to the extent system reliability and operating conditions allow,shall use their best efforts to reduce system generation to allow the Dispatcher to schedule the Project at its full available capability.The energy realized during periods of Pending Spill or immediate spill shall be allocated,to each Purchaser based upon its Purchaser's Share.If a Purchaser is unable to schedule its full Purchasers share of Project Capability,the energy which is not scheduled shall be made available to the other remaining Purchasers for scheduling pro rata based on their Purchasers Share. (iii)Once a Pending Spill period is suspended by the Dispatcher,the energy scheduled and generated shall be added to each Purchasers Net Allocation or Revised Project Energy for the month.Schedule of Energy by a Purchaser during the pending spill period shall then be credited against the resulting Revised Project Energy Total of each Purchaser for such month. 10 (i)End of Water Year Procedures.At the end of the Project Water Year,a comparison of final allocation to actual use through May 31s will be made for each Purchaser as well as for the Project as a whole.The total final allocation minus the total actual use will equal the total year end project pond.Likewise,a Purchaser allocation minus the actual Purchaser use will equal the Purchaser pond. (i)Scheduling Limitations.As previously agreed,all Purchasers will schedule to avoid or minimize Project Spill.The Dispatcher shall provide to all Purchasers all relevant data to achieve this goal.If Project Spill is anticipated,the Dispatcher will provide a projected spill date and a minimum use allocation to avoid spill.The minimum use allocation will be based on the forecast inflow between June and October of the Project Water Year,the pond carried over from the previous water year,projected inflows between June 1 and when the project is expected to reach a reservoir level of 1,180. To prevent a Spill,all Purchasers will schedule their ownership share of the Minimum Use Allocation prior to the projected Spill Date.*NOTE*the Minimum Use Allocation does take Project Pond into account.Each Purchaser will have MWH at Risk of Spill equal to their Minimum Use Allocation plus the Purchasers Pond.The MWH at Risk Value will decrease as a Purchaser schedules during the Project Water year. Purchasers will have MWH at risk of spill equal to their minimum use allocation as previously shown.The MWH at risk value will likely decrease as the Purchaser schedules during the Project Water Year.The example assumes a spill of 5,000 MWH's of water. Section 6.Project Operations.The project shall be operated by the Dispatcher pursuant to the terms and conditions of the Dispatch Agreement and consistent with those set forth in Exhibits A,B,C,and D. Section 7.Project Spill.The Purchasers recognize that from time-to-time water from the Project Reservoir may spill which does not result in Project Generation.If this occurs,then: (a)The Project Operator shall determine the quantity of Project Spill. (b)Each Purchaser with a Net Allocation greater than zero during the spill period shall have its Net Allocation as adjusted in Section 5(g)reduced pro rata based up each Purchasers Net Allocation,such that the total reduction for all Purchasers is equal to the amount of energy in the Project spill. 11 (c)In the event of Project Spill,the Dispatcher will provide a accounting of the Water Spilled.If there is pond at risk exist at spill,then the Project Spill will be subtracted from each Purchasers Pond and allocated by proportionate share of MWH at Risk (see example Pond at Risk). If the spill Energy exceeds the amount of Pond at Risk (i.e.if spill exceeds the 12,096 acre-feet in the Pond at Risk example)then all energy could not be accounted for in the Pond at Risk Allocation.That energy spilled beyond the Pond at Risk will be allocated on a project share basis. Following the spill period a new Project Allocation for the remainder of the water year will be updated by the Dispatcher Section 8.Losses. (a)General.The losses provided for in this Section 8 shall be accounted for in kind by reducing the amount of available allocation to each Purchaser and not by direct monetary compensation. (b)Losses on Project Transmission.Losses on the transmission lines of the project shall be determined by actual metering. (c)Losses on the HEA System.Losses on the HEA transmission system under various operating conditions shall be determined by actual metering in place based on load flow. (i)HEA shall maintain records adequate to determine the relevant HEA load levels and transmission conditions when particular deliveries of Project power are accomplished.Such records shall be made available to the parties in the HEA Transmission Sharing Agreement upon reasonable request. (ii)Deliveries under the HEA Transmission Sharing Agreement shall be reduced for line losses as appropriate under this subsection. (d)Losses on the Chugach Electric System.Deliveries by Chugach Electric System over its transmission facilities may be accomplished by Direct Transmission (as defined in the Chugach Services Agreement)or through Offsetting Flows (as defined in the Chugach Services Agreement). (i)The Dispatcher shall maintain records adequate to determine the extent to which particular deliveries are accomplished in whole or in part by each of 12 Section 9. Section 10. these means.Such records shall be available to the Wheeling Utilities (as defined in the Chugach Services Agreement)upon reasonable request. (ii)If and to the extent deliveries are accomplished by Direct Transmission, such deliveries shall be reduced for the line losses.The reduction shall be by a percentage equal to the average percentage line losses on Chugach's wholesale system,such wholesale system losses to be determined in Chugach's periodic rate adjustment proceedings or (in the absence of such a proceeding)through reasonable line loss studies prepared by Chugach not less frequently than once every two years;provided,that if,after a reasonable period of experience in actual operation under the Services Agreement,Chugach's system line loss studies prepared for use in Chugach's parodic wholesale and/or retail rate adjustment proceedings demonstrate that Chugach's wholesale system line losses have increased as a direct result of Bradley Lake Energy (as defined in the Chugach Services Agreement)delivered by Direct Transmission,then deliveries of such energy through Direct Transmission shall thereafter be further reduced for line losses to the extent of the increase in Chugach wholesale system line losses attributable thereto. Spinning Reserves.The Operation and Dispatch Committee shall recommend to the BPMC a method of allocation of Spinning Reserves in each hour under various system operating conditions.Once approved by the BPMC such Spinning Reserves shall be made available in accordance with such method as follows: (a)Spinning Reserves shall be allocated to each purchaser on a pro rata basis based on its Percentage Share of Project Capability net of any Project Generation scheduled by the Purchaser.Reference Exhibit B Amendment or Replacement Procedures.Upon the request of any Purchaser or the AEA,the Operation and Dispatch Committee shall review any proposal to amend or replace these Procedures at the Committees next meeting and make a recommendation regarding such proposal to the BPMC as soon as practicable thereafter.It is the intent of the BPMC that the Operation and Dispatch Committee monitors the application of these Procedures and periodically recommends changes which improve overall administration to the Purchasers, and reduce,where practicable,the obligation of the Authority to provide information or revised data which is not useful to the Parties. 13 EXHIBITA Description of Reservoir Operation Model The Reservoir Operation Model uses the following data to predict on a monthly basis whether or not project spill is likely to occur in any given month during the Project Water Year.The Model is maintained by the Dispatcher. Data required for the Model to function properly is as follows: 1.Beginning lake level as of June 1°each year. 2.Carry over pond allocation for each participant from the previous Project Water Year. 3.Initial Project Allocation,on a monthly basis as described in Section 4 of these procedures. 4.Estimated monthly usage schedules from each Purchaser for each month of the Project Water Year. 5.Project and/or transmission outages scheduled in the coming Project Water Year which may limit or prevent operation of the Project or ability of any Purchaser to access their Project Generation. Once all data is received it will be placed into the Bradley Lake Operation Model and checked to verify the forecast,generation schedule,and maintenance schedule.If the model indicates that spill is likely to occur with the current inputs then the purchasers will be asked to revise their schedules in order to avoid the potential for spill. On a monthly basis the volume of inflow into the Project will be re-evaluated and transmitted to the Purchasers.If the Project has experienced inflows above or below initial projects the Purchasers will be informed of the magnitude of their respective increase or decrease in available generation.This re-evaluation will also check on the impact of the potential for project spill and whether or not it will be necessary for each Purchaser to produce a new schedule for the remaining water year. 14 EXHIBIT B Bradley Lake Output and Kenai Export Limits Project Spin Capacity 27 MW's (both units)14 MW's (one unit) Initial System Condition Export Limit Bradley Output System Normal!75 MW 115 MW Soldotna TSC Unavailable 75 MW 74 MW Soldotna SVC Off Line 57MW 66 MW (one unit only) Dave's Cr.SVC Off Line 67 MW 85 MW Bradley/Soldotna Line Out of Service 75 MW 60 MW (one unit only) Bradley/Fritz Creek Line Out of Service 69 MW 100 MW Dave's &Soldotna SVC's Off line 30 MW 63 MW (one unit only) (Best information on this condition as of 6/3/2010 has not been studied) 15 EXHIBIT C Spill Volume Calculation over Spillway Volume Q determined as follows: Q =CLH?/? C =Spillway coefficient. For reservoir pool elevations between 1,180 feet and 1,183 feet,use C =3.2 For reservoir pool elevations between 1,183 feet and 1,185 feet,use C =3.4 L =Spillway crest length =175 feet H =Head over the spillway. This value is equal to the difference in the reservoir poo!elevation (away from the spillway)and the spillway crest elevation of 1,180 ft. 16 EXHIBIT D Examples of Water Allocation Calculations Example of Project Water Year Pond Carry Over Project Share 16.90%25.90%12%30.40%13.80%1.00%100.00% GVEA ML&P HEA CEA MEA SES Total Final allocation 64,727 99,197 45,960 116,432 52,854 3,830 383,000 Actual use 62,727 94,197 45,960 100,432 49,434 3,030 355,780 Carry over pond 2,000 5,000 QO 16,000 3,420 800 27,220 Notes: 1.Final allocation of water at end of Project Water Year is 383,000 Acre-Feet. 2.Numbers are for illustration purposes only and do not reflect actual use in any particular year. 17 Example of minimum use allocation Project Share 16.90%25.90%12%30.40%13.80%1.00%100.00% GVEA ML&P HEA CEA MEA SES Total Share of storage 48,020 73,593 34,097 86,379 39,211 2,841 284,141 Pond carry over 2,000 5,000 0 16,000 3,420 800 27,220 Available storage 46,020 68,593 34,097 70,379 35,791 2,041 256,921 Projected inflow share 58,305 89,355 41,400 104,880 47,610 3,450 345,000 Minimum use allocation 12,285 20,762 7,303 34,501 11,819 1,409 88,079 Notes: 1.This example uses the pond carry over from the previous example 2.Storage capacity is the reservoir storage measured at reservoir level 1,180 in acre-feet. 3.Projected inflows are an estimate of the inflows that would occur between June 1%and October 31*of any given water year 18 Example of spill allocation with the spill being less than the pond at risk Project Share 16.90%25.90%12%30.40%13.80%1.00% 100.00% GVEA ML&P HEA CEA MEA SES Total Available share of storage 46,020 68,593 34,097 70,379 35,791 2,041 256,921 Projected inflow share 58,305 89,355 41,400 104,880 47,610 3,450 345,000 Minimum use allocation 12,285 20,762 7,303 34,501 11,819 1,409 88,079 Actual use during period 10,600 15,300 7,303 31,080 10,500 1,200 75,983 Pond at risk 1,685 5,462 0 3,421 1,319 209 12,096 Spill allocation 697 2,258 0 1,414 545 86 5,000 Notes: 1.Available storage values and projected inflow values same as used in previous examples. 2.Spill volume is less than the volume of pond at risk therefore all spill is accounted for from pond at risk. 19 Example of project spill where there is pond at risk and spill is greater than the pond at risk Project Share Available share of storage Projected inflow share Minimum use allocation Actual use during period Pond at risk Spill allocation pond at risk Current Water Year spill allocation Total spill allocation 16.90% GVEA 46,020 58,305 12,285 10,600 1,685 1,685 829 2,514 25.90% ML&P 68,593 89,355 20,762 15,300 5,462 5,462 1,270 6,733 12% HEA 34,097 41,400 7,303 7,303 30.40% CEA 70,379 104,880 34,501 31,080 3,421 3,421 1,491 4,912 13.80% MEA 35,791 47,610 11,819 10,500 1,319 1,319 677 1,995 1.00% SES 2,041 3,450 1,409 1,200 209 209 49 258 100.00% Total 256,921 345,000 88,079 75,983 12,096 12,096 4,904 17,000 Notes: 1.Total project spill is greater than the pond 20 EXAMPLE OF RESERVOIR OPERATION MODEL BOM Eevel BOM Storage Gen MWh Conv Gen Ac-Ft EOM Bevel EOM Storage Netihflow EOM Storage Level June 1,092.5 22,712 17,934 0.95 17,848 1,124.3 96,927 92063 96,927 1,124.4 July 1,124.3 96,927 27,205 0.98 27,778 1,151.5 181,035 111886 181,035 1,151.5 August 1,151.5 181,035 40,254 1.00 40,101 1,171.6 252,426 111492 252,426 1,171.6 September 1,171.6 252,426 57,278 1.01 59,701 1,176.0 268,430 75705 268,430 1,176.3 October 1,176.0 268,430 51,724 1.01 53,712 1,166.0 232,536 17818 232,536 1,166.0 November 1,166.0 232,536 37,122 1.00 37,900 1,162.3 219,394 24758 219,394 1,162.4 December 1,162.3 219,394 39,603 0.99 40,413 1,150.9 178,833 -432 178,548 1,150.8 January 1,150.9 178,833 38,463 0.98 38,846 1,139.0 141,812 2109 142,096 1,139.3 February 1,139.0 141,812 37,454 0.96 39,014 3503 106,301 1,127.5 March 1,127.5 106,338 9,455 0.95 9,953 -1092 95,293 1,123.6 April 1,123.6 95,293 22,375 0.95 23,553 -1394 70,347 1,113.6 May 1,113.6 70,347 34,409 0.94 36,605 25764 59,506 1,109.4 Notes: 1.June through January values reflect actual inflows,generation MWH's,storage volumes and lake levels 2.February through March values reflect projected inflows,projected generation MWH's,calculated storage volumes and calculated lake levels 21 Example of Pending Spill Water Allocation Actual 16.90%25.90%12.00%31.40%_Loses 13.80% Generation]GVEA GVEA Gained|ML&P ML&P Gained]HEA HEA Gained|Chugach Chugach Gained]MEA MEA Gained Date Usage Share Actual (Lost)[Share Actual (Lost)|Share Actual (Lost)|Share Actual (Lost)|Share Actual (Lost) 1 1,532 446 266 (180)}684 391 (293)]317 303 (14)829 473 (356)}364 288 (76) 2 2,009 446 360 (86)684 720 36 317 405 88 829 509 (320)364 288 (76) 3 2,452 446 360 (86)684 609 (75)317 925 608 829 345 (484)364 295 (69) 4 2,365 446 409 (37)684 498 (186)]317 930 613 829 330 (498)364 288 (76) 5 2,446 446 426 (20)684 349 (334)317 930 613 829 247 (582)364 288 (76) 6 2,055 446 185 (261)]684 90 (594)}317 930 613 829 609 (220)}364 357 (7) 7 2,446 446 360 (86)684 400 (284))317 930 613 829 493 (336)364 357 (7) 8 2,614 446 360 (86)684 396 (287)317 930 613 829 487 (342)364 354 (10) 9 2,583 446 360 (86)684 521 (163)317 920 603 829 363 (465)364 354 (10) 10 2,581 446 360 (86)684 552 (132)317 920 603 829 317 (512)364 357 (7) 11 2,619 446 360 (86)684 552 (132)317 930 613 829 319 (510)364 357 (7) 12 2,522 446 344 (102)684 552 (132)317 920 603 829 362 (467)364 354 (10) 13 2,586 446 360 (86)684 498 (186)317 930 613 829 317 (512)364 348 (16) 14 2,614 446 360 (86)684 516 (167)317 930 613 829 346 (483)364 348 (16) 15 2,594 446 360 (86)684 499 (185)317 930 613 829 383 (446)364 348 (16) Total 36,017 6,692 5,229 (1,463)]10,256 7,143 (3,114)]4,752 12,763 8,011]12,434 5,901 (6,533)]5,465 4,981 (484) Notes: 1.The maximum output of the plant is assumed at 2640 MWH's per day. 2.The Share of each Purchaser is their share of the maximum output based on their project share. 3.Actual generation is the amount of generation used by each Purchaser on the give day. 4.The Gain/Lost allocation is that amount that the Purchaser was able to take above or below their share of the maximum output.This amount is not included in the calculation of the Purchasers Net Allocation of Bradley Lake inflows. 22 Bradley Lake Project Management Committee -Alaska Online Public Notices Page 1 of 1 STATUS:Active Bradley Lake Project Management Committee ALASKA ENERGY AUTHORITY (AEA) Bradley Lake Project Management Committee Notice is hereby given that the Bradley Lake Project Management Committee will hold a regular meeting on Tuesday,May 30,2017 at 1:30 p.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 467-050-1264. 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,Detalis Attachments Details BPMC Agenda 5-30-17-p Department:Gemmmerce,Community and Revision History Category:Public Notices Created 5/24/2017 1:27:22 PM by Sub-Category: tawebster Location(s):Statewide Modified 5/24/2017 1:30:37 PM by spat Project/Regulation #:[Details]tawebster _* Modified 5/24/2017 3:38:11 PM by [Details]Publish Date:5/24/2017 tawebster ° Archive Date:5/31/2017 Events/Deadlines: https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=1 85975 5/24/2017 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING AGENDA \Tuesday,May 30,2017 1:30 p.m. Alaska Energy Authority's Board Room 813 West Northern Lights Boulevard,Anchorage,AK To participate by phone,dial 1-888-585-9008 and use code 467 050 126. 1.CALL TO ORDER 2.ROLL CALL FOR COMMITTEE MEMBERS 3.PUBLIC ROLL CALL 4.PUBLIC COMMENTS 5.AGENDA APPROVAL 6.APPROVAL OF PRIOR MINUTES -APRIL 18,2017 7.OLD BUSINESS A.SPILL RAISE DECISION 8.NEW BUSINESS A.INSURANCE B.MOTORIZED LAND ACCESS PERMITS C.ALLOCATION &SCHEDULING PROCEDURES D.DYNAMIC DISPATCH UPDATE €.BC PSA Aseussion 9g.COMMITTEE REPORTS_yng -10.OPERATOR REPORT 11.COMMITTEE ASSIGNMENTS 12.MEMBERS COMMENTS 13.NEXT MEETING DATE -JUNE 28 14.ADJOURNMENT AEA ARECA AEA CEA CEA pee aD Be Rerthor ansysrs.we Mg |Sect Meuc [Me CondFodor35uKtachi'Con sutteot,a bebnwy Soy,CB Qa trel eager str spr ile,NTP to Cowl,AF Caw ae ax REP KZA wil neid oF y c4 Valuahon reperAAWswancePaterineVolwefhpropty"Now tetbe 2004 WoT currentFronudCiewegyearboreligicLordBOM,FeetpoebieeMantunloss4M' pt Clio \e-.,;ee PN GPS ap «tab 1s A V2 lue 7 Prodiae cobuage ,Conk hoant been char geduchGD«Db cel ,_oe SMads have Wen wr Me last ecuple «}year.Cbg Yb vindbe.5 .BAP "ESIC De ductylolz lower ralis % ome?AO wn poat peecr (3 19 ALUsd Five dwo4 FRI -bw low 0g ib Geneid Lrabilety -Casmal anyary-Teed 4HomeBurkylookatHeepohoyaseeiF Gen Liabilty is thor. Veukhee tv owe?Duly t. pay?"av.prunt Diealkedoun SO (uate plod othe than Cothquete or Hood a'A {oF : nr Arle te de se.BB -Motized Wh €C €8.S -Limided ts pes nits (prop ty /+<pp.ng)DW ft ant ce ct orans.Teo large a_hayun vad 2°afield -Ro TskdF,accident DBowr-nn f eve leo Access te teeatle| aeWeMare5ILee-Bradley tS 9 by Aunties -just neh polurized Vehicle&y en if 9)5)shcwo to EV}M9 Geis opproted Property Owes oc huwnhag.hed issues pormd EhOl(Anse sore _ BC-wpdaded Since a0 (qu)--ve chang?Prowde few to Bee'[CADte Ne LG weelle Row SHDoR NE Shey : ID-Dynaric Scheduling,-ho Drange Cép quer?)aver hans (!Mad pub Loins,HZ A-rot Wortsna yek-Syo¥us are net Wonk 9 thayether,Mpg HONSModyofPSAocbylawsChanae-Rowend P58 ©non eer "On ,MLAS iMdieREdwwenoesYDMalleehrenyeTFBaveseLOT_»workAMsupuhlbarkpoytegefedCogardless"D Poste pashan gt ep han Pree s Prushcerns >. . - ;;fA ;rd :CeeResXoonordMWeeking(ar e to wotk on mea Ly eee +wit suey 4 au 't om ;vue |Ware Resotufisyy eee RS gue tg Duly Jos PRE perh {BL Aone wpdete nowNN@greemankfunds PY end of)Tune 3.39 _ATTENDANCE -_BPMC REGULAR MEETING,Apihe@ 10:30-am-! |COMMITTEE MEMBERS /Lory Borgeson,ChairLeeThibert,Vice Chair -CEA £40 fi ALTERNATE=Lynn Thompson7!Burke Wick:.wv,Brad Janorschke -HEA ZiBob>Day ee 7:_ut Michael Lamb,Secretary/T reasurer -r AEA;Bryan Carey _;4 TonyIzzo MEA Gary KuhnMarkJohnston.ee MP /JeffWarnerSFsonFoutzohneSEW a | 7 Public Members _COUNSEL --David kockara -_Kirk Gibson,McDowell Rackner &Gibson PC;.|Kirk Warren OO |ZLBrian1 Bjorkquist,EDept of Law-7 7-Brian FHickey (CEA : --usMark Johnson (CEA)¢-atCrystal Enkvist (APA):pe oe ayn Z oo Mel Hutchinson (APA)__-Daneel.WO | : Rich Baldwin (HEA):Bend.Whe.oeAnnaHenderson(MLP)7/7 Alan Owens (HEA);_BemieSmith(RCA)pu | Emily Hutchinson (HEA) |)Jim Brooks (MEA)Oo :GaryKuhn(MEAY te Me of PApp oe_David Pease (MEA)_Molly Morrison (MLP)OO :_ Larry Jorgensen (HEA)to _7 :7 _Ron Wotfe (GVEA) : Mile Moth COW.AE ch -Michael Revte ARECh [sea BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE First Seconds First {Second First vA Second First 2 Second .:BPMC 5/30/17 Wd Do”onl ;ge \()as ee v4 Roll Call Agenda Minutes Insurance Land Access Roll call from top to bottom ending with Chair Yes No Yes No Yes No Yes No Yes No Homer Electric Association To YD LY Matanuska Electric Association To aw ” .j 7CityofSewardiin " Alaska Energy Authority IM te h u el a Municipal Light &Power "To AC uw Chugach Electric Association LL Ce a" Golden Valley Electric Association FCowis x First Second First Second First Second First Second First Second MY BSAna Allocation Scheduling Roll call from top to bottom ending with Chair Yes No Yes No Yes No Yes No Yes No Homer Electric Association Matanuska Electric Association City of Seward Alaska Energy Authority Municipal Light &Power Chugach Electric Association Golden Valley Electric Association Next Meeting:TBD xy an Canes -LIKAda40 Cony dence Un managing proye chs Bradley Lake Project Management Committee Tuesday,May 30 @ 1:30 pm. *"PLEASE WRITE LEGIBLY** NAME ORGANIZATION Poms CHEE CHUGACHYLLepnit-Sin)TA PUBLIC. Alan Owens Aan Bub po Kev Bran 'B01 [Cast AGO Kiel Groun YU BPRS Suck Raters Gb) Muh Sob io/Cb jek,Joely Ger nec ACALEETHREAT_,COUC ActfRendUhHt?ALAQweyvulnWAGt TY VGQXv LpBryanCarey\ Yorle Woarfen Neh "Vanrel Bertrrcls Terr Wiser / AGIMNS Maye Method \| Michwe\Boyte PERD Crystal 2nVVist BPMC or IMC meeting availability IMC April Possible GVEA ML&P CEA MEA AEA Board room dates (Kirk) BPMC April v\at 60?cuteSorguir'_Mane GVEA ML&P CEA MEA J Seward HEA AEA Board/4 P36 J ; room 5/30 Y ClLing Y PY |oy LM Y Motorized rat MENTO BRADLEY LAKE HYDROELECTRIC PROJECT BPMC ACCESS PERMIT This Access Permit is made this day of ,2017, by and between the ALASKA ENERGY AUTHORITY (AEA),a public corporation of the State of Alaska,whose business address is 813 West Northern Lights Blvd., Anchorage,Alaska 99503,on behalf of the Bradley Project Management Committee (BPMC),and whose address is ,(Permittee). THIS BPMC ACCESS PERMIT DOES NOT AUTHORIZE ACCESS TO ANY PROJECT AREAS. BEFORE ENTERING THE PROJECT AREA,THE PERMITTEE MUST OBTAIN A BRADLEY LAKE FACILITY LIMITED ACCESS PERMIT FROM THE BRADLEY LAKE PROJECT OPERATOR,HOMER ELECTRIC ASSOCIATION,INC.(HEA). 1.Approval for Issuing Access Permit: AEA,on behalf of the BPMC,approves the HEA as Bradley Lake Project Operator issuing a Bradley Lake Facility Limited Access Permit to Permittee,subject to each the terms and conditions contained in this BPMC Access Permit.Permittee accepts and agrees to abide by the terms and conditions contained in both this Access Permit and the Bradley Lake Facility Limited Access Permit issued by HEA. 2.Location of the Permitted Access: The Bradley Lake Facility Limited Access Permit shall establish the location of allowed access to the Bradley Lake Project areas. 3.Term,Termination: This Access Permit shall continue until (insert date),unless terminated earlier.AEA may terminate this permit upon giving written notice to Permittee and HEA.fer any cee 4.Responsibility for Liability and Damages: Permittee assumes all responsibility,risk and liability for all activities of Permittee,its employees,agents,invitees,contractors,subcontractors,or licensees directly or indirectly conducted in connection with this permit,including environmental and hazardous substance risks and liabilities,whether accruing during or after the term of this permit. a)Permittee shall defend indemnify,and hold harmless the Bradley Lake operator,the BPMC,Utility members of the BPMC,the Alaska Energy Authority,the State of Alaska,and their respective employees,and agents (collectively "Indemnified Parties”)from and against any and all suits,claims, actions,losses,costs,penalties,and damages of whatever kind or nature, Rev:5/2017 Page 1 of 5 b) including all attorney's fees and litigation costs,arising out of,in connection with,or incident to any act or omission by Permittee,its employees,agents, invitees,contractors,subcontractors,or licensees,unless the sole proximate cause of the injury or damage is the negligence or willful misconduct of the Indemnified Parties.Within 15 days Permittee shall accept any such cause or action or proceeding upon tender by the State.This indemnification shall survive the termination of the permit. Permittee shall be liable to the Alaska Energy Authority,the State of Alaska, the Bradley Lake Operator,the BPMC,Utility members of the BPMC,or any of their respective their respective employees,and agents,for any liabilities, damages,injuries,costs or expenses incurred by which in any way arises from or is connected with any activities under this Permit whenever the liability,damage,cost or expense results from breach of the terms or conditions associated with this Permit,or from any wrongful or negligent act of Permittee,its agent or invitees. Prior to receiving permit,Permittee shall provide proof of auto liability insurance to Alaska Energy Authority with minimum coverage limits of $300,000. 5.Limitations on Access: a) b) d) Rev:5/2017 Neither this Access Permit nor the Bradley Lake Facility Limited Access Permit authorizes any activity other than crossing the Bradley Lake project area. Access within the project area is strictly limited to the routes and areas designated by the Bradley Lake Operator.Other uses of the permitted area shall require additional approval prior to making any such modifications. This Access Permit and the Bradley Lake Facility Limited Access Permit apply only to access within the Bradley Lake Project area,and do not grant access over adjacent property necessary to reach the Bradley Lake Project area.The Permittee shall obtain any necessary permission to access areas outside the Bradley Lake Project area from the appropriate landowner or land managing agency. Permittee acknowledges that the Bradley Lake Operator may regulate Permittee's access to facilitate the operation and maintenance of the Bradley Lake Project and safe access.For these purposes,the Bradley Lake Operator may provide specific instructions to Permittee,or may provide warnings, barricades,or other safety measures.Permittee agrees to obey all such access and vehicular traffic instructions,restrictions and warnings. Permittee shall comply with all measures in the Bradley Lake Hydroelectric Project FERC Mitigation Plan,dated November 1985,including any future changes. Page 2 of 5 e) f) No new access trails or roads are authorized without the express written permission of the Alaska Energy Authority. All stream-crossing activity is subject to AS 16.05.870.Stream-crossings shall comply with the State of Alaska,Department of Fish and Game,Fish Habitat General Permit that covers winter crossings of frozen water surfaces within the Kenai Peninsula Borough. 6.Special Stipulations: a) b) d) f) The Permittee shall comply with the requirements and stipulations included in this permit and all applicable federal,state,and local laws,regulations,rules and orders,existing or hereafter adopted,affecting in any manner,operation on the permit.Permittee shall ensure compliance by its employees,agents, contractors,subcontractors,licensees,or invitees. The authorizing of this Permit is subject to the express condition that the exercise of the rights and privileges granted under this Permit will not unduly interfere with the operation,maintenance,or management of the Bradley Lake Hydroelectric Project.If any undue interference arises,the Permittee agrees and consents to the Bradley Lake Operator suspending any or all access activities allowed in connection with the Permit. All activities shall be conducted in a manner to minimize disturbance to the surface-protecting vegetative mat.All areas where soils are damaged must be restored consistent with the natural terrain features and revegetated. Harassment or molesting of wildlife or destruction of known habitat is prohibited.Wildlife shall not be "herded,buzzed”or otherwise harassed through use of vehicles. The Alaska Historic Preservation Act (AS §41.25.000)prohibits the appropriation,excavation,removal,injury or destruction of any historic, prehistoric,or archeological resources of the State.No historic site, archeological site,or camp,either active or abandoned,shall be disturbed in any manner,nor shall any item be removed from there.Should cultural or paleontological resources be discovered as a result of this activity,work which would disturb such resources shall be stopped,and the State Historic Preservation Office shall be contacted immediately. Fuel and hazardous substances.The Permittee may not store or transport hazardous substances or fuels in containers under the Access Permit or the Bradley Lake Facility Limited Access Permit.Permittee is responsible for preventing spillage and contamination of contiguous land and water as well as cleaning up any oil or other pollutants that result from activities associated with this permit. Rev:5/2017 Page 3 of 5 "Containers"means any item,which is used to hold fuel or hazardous substances.This includes tanks,drums,double-walled tanks,portable testing facilities,fuel tanks on small equipment such as light plants and generators,flow test holding tanks,slop oil tanks,bladders,and bags. "Hazardous substances”are defined under AS 46.03.826(5)as (a)an element or compound which,when it enters the atmosphere,water,or land,presents an imminent and substantial danger to the public health or welfare,including fish, animals,or vegetation;(b)oil;or (¢)a substance defined as a hazardous substance under 42 U.S.C.9601(14). g)Spill Notification.The Permittee shall immediately notify the Department of Environmental Conservation (DEC)by telephone,and immediately afterwards send DEC a written notice by facsimile,hand delivery,or first class mail, informing DEC of:any unauthorized discharges of oil to water,any discharge of hazardous substances other than oil;and any discharge or cumulative discharge of oil greater than 55 gallons solely to land and outside an impermeable containment area.If a discharge,including a cumulative discharge,of oil is greater than 10 gallons but less than 55 gallons,ora discharge of oil greater than 55 gallons is made to an impermeable secondary containment area,the Permittee shall report the discharge within 48 hours, and immediately afterwards send DEC a written notice by facsimile,hand delivery,or first class mail.Any discharge of oil,including a cumulative discharge,solely to land greater than one gallon up to 10 gallons must be reported in writing on a monthly basis.The posting of information requirements of 18 AAC75.305 shall be met.Scope and Duration of Initial Response Actions (18 AAC 75.310)and reporting requirements of 18 AAC 75, Article 3 also apply. The Permittee shall supply DEC with all follow-up incident reports.Notification of a discharge must be made to the nearest DEC Area Response Team during working hours:Anchorage (907)269-7500,fax (907)269-7648; Fairbanks (907)451-2121,fax (907)451-2362;Juneau (907)465-5340,fax (907)465-2237.The DEC oil spill report number outside normal business hours is (800)478-9300. h)Every reasonable effort shall be made to prevent,control,or suppress any fire in the operating area.Uncontrolled fires shall be immediately reported to the US Forest Service and to AEA.Any controlled burning will require appropriate burning permits obtained prior to this activity from the Dept.of Natural Resource,Division of Forestry and the Department of Environmental Conservation. i)All eagles,their eggs,and their nests shall be protected by the Permittee from disturbance and/or destruction.The Permittee will not allow human disturbance or operational activity to jeopardize the continued existence of Rev:5/2017 Page 4 of 5 raptors and nesting activity.The Permittee shall consult with the U.S.Fish and Wildlife Service regarding operational activities in close proximity to raptor nests. 7.Assignment by Permittee: Permittee shall not assign or transfer its interest in this Access Permit without the prior written consent of AEA on behalf of the BPMC. 8.Severability: If any provision of this Access Permit is determined to be unenforceable or illegal for any reason,the remaining provisions of this Access Permit shall not be affected by that illegality or unenforceability. 9.Waivers: Any waivers at any time by any party to this Access Permit of its rights with respect to a default or any other matter arising under or in connection with the easement shall not be deemed a waiver with respect to any subsequent default or matter. IN WITNESS WHEREOF,AEA on behalf of the BPMC and Permittee have caused their duly authorized representatives to sign this Agreement. ALASKA ENERGY AUTHORITY,on behalf of the BPMC BY: TITLE: PERMITTEE BY: TITLE: Rev:5/2017 Page 5 of 5 Bradley Lake Facility Limited Access Permit Owner Operator Alaska Energy Authority Homer Electric Association 813 W Northern Lights Blvd 3977 Lake Street Anchorage,AK,99503 Homer,AK 99603 (800)315-6338 (907)235-4444 Ligf ]Worws om permit Date of request Annual Permit -Expires one year from date issued Access Permit must be carried at all times while on the property Failure to present the permit will result in denial of access. Prior to access,notification must be provided to the facility operator by calling the Main Control Room at 907-235-4444 Name of Primary Responsible Person | Street Address | City State Phone number Purpose of your travel,planned activities,and number of people in your party. Responsible party must read and check mark each permit requirement.Signing the permit indicates you understand,and agree to comply with all permit requirements. [-]Permit holder possesses a valid Access Permit issued by the Alaska Energy Authority on behalf of the Bradley Project Management Committee,and which is on file at HEA.Permit holder must comply with all terms and conditions contained within the permit. [-]Unauthorized motorized vehicles are not permitted.Motorized vehicle use if authorized by the Alaska Energy Authority is not permitted beyond mile marker 2-1/2 (2.5). (]Any motorized travel must comply with open areas in the attached map. ]Permit holder assumes all risk,liability,and responsibilities for use during facility access, including roadways,airport runway,bridges,and all facility authorized areas. (1)Permit holder must notify plant personnel prior to crossing or accessing the project airport runway by calling the plant control room at 907-235-4444.Airport access is not permitted when runway lights and/or flashing warning lights are activated. Bradley Facility Authorized Permit Holder Signature:Agent Signature Date permit issued |!||| Bradley Lake Project Operator Access Permit Motorized Travel Map oat 'ts Was,¢AA es Tee cawwe AK "TANDINGdst 78,,iaCONTRO.BUILDING 2 Vrnek TaeBARGKBad-_PUBLIC.".fe.Mi Ae TaeBOATDOCK*: un6 -ZINE! eal Neeosga,Saee WE TLANDS LIM PS'CAMPSITE .-\Qe Ag :PAS eva Sie aKPROJECTBOUNDARY .<],'-poe \_WATERFOWLefords+]ak "NESTING AREASonOre oe NS,\ 'Tra?\'3modpoLeey 7 PROJECT BOUNDARY ?(he Oe ft?x -,.4LA”hag wn a oa Lane4AKmSatS"2 °7 - \ ."|CAMPAK,BRIDGE:a ”oat\Alm Tet a ie ae oN SonC-E-NW 1:64 6F CNG,a re Mile a N 416 +1024 axNN(iatrecce!Ah PF NO MOTORIZEDBerAe.WRROWPIT "Aye ghey NF TRAVEL THISCv116VtbeJeeaneAapoA;"ASIDE!woke \BRIDGEania74aa;owpity (Se Zw |ow OT \amioce whoa Coy TB.BuLZtaat"7 Oa es aDIKESE116SUB24ONALP(e RE meee?f GS W168 , 7 CS 1:16 sie 71 :: aK 4 #\o";QUARRY SITE 7 \:,|if arn 2its\PROJECTBOUNDARY =™A f wee A /_arenes Fcnet a ten e woes:Route through project facility and runway area.Travel shall stay on route between North side of powerhouse and West end of runway. e Nostopping in project facility or runway area unless flagged by site personnel. e Speed limit on roads and runway is limited to 10 mph. e Travel down runway must be on side of runway. e Verify runway lights off before proceeding.If lights on do not proceed. e Noassistance by site personnel. ¢No motorized travel up Bradley Lake road past mile 2.5.