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BPMC meeting Feb 17, 2017
BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Alaska Energy Authority,Anchorage,Alaska February 17,2017 &BC 1.CALL TO ORDER Chair Borgeson called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 9:46 a.m. 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 [MLP]);Brad Janorschke (Homer Electric Association [HEA]);and John Foutz (Seward). 3.PUBLIC ROLL CALL Bryan Carey,Katie Conway;Jocelyn Garner,Jennifer Haldane,Valerie Leavitt,David Lockard, Kelli Veech,Kirk Warren,Teri Webster,Brandi White (AEA);Brian Bjorkquist (Attorney General's Office [AGO]);Crystal Enkvist (Alaska Power Association [APA]);Brian Hickey,Mark Johnson,Russ Thornton,Burke Wick (CEA);Bob Day,Emily Hutchinson (phone),Larry Jorgensen,Alan Owens (HEA);Kirk Gibson (Mcdowell Rackner Gibson PC);Jim Brooks,Gary Kuhn,David Pease (MEA);Anthony Scott (MLP);Jay Layne (phone),Bernie Smith (Regulatory Commission of Alaska [RCA]);Sydney Hamilton (Accu-Type Depositions);and TW Patch (Public). 4.PUBLIC COMMENTS None. 5.AGENDA APPROVAL MOTION:Mr.Johnston made a motion to approve the agenda.Motion seconded by Mr. Izzo. Mr.Lamb requested to amend the agenda adding Item 7D.Bradley O&M Procurement Update and Item 7E.Bradley Project Organizational Chart The agenda was approved as amended. 6.APPROVAL OF PRIOR MINUTES -December 14,2016 MOTION:Mr.Foutz made a motion to approve the minutes of December 14,2016. Motion seconded by Mr.Janorschke. The motion passed without objection. 7.NEW BUSINESS A.Battle Creek Project Update BPMC Minutes 2/17/17 Page 1 of 5 Mr.Carey reviewed the Battle Creek Project update data sheet provided to members.The permitted water rights for the project were received from Department of Natural Resources (DNR).Revised information for the land lease were submitted to DNR and is expected to be prioritized before the brush is cleared in July.The Federal Energy Regulatory Commission (FERC)Fish Plan sent out three weeks ago has received comments from Fish and Game,and will be used as a template for future licensees. Mr.Carey noted the schedule is currently on track and will only be delayed if the financing and agreements do not move forward as anticipated.The timeline includes the initial request for proposal (RFP)in late June,site visit for contractor and clearing in August,bids received in late fall,road construction in 2018,pipe and dam installation in 2019,and the diversion beginning in 2020.Mr.Carey stated the finalized 95%cost estimate came in less than the previous estimate and is approximately $46.7 million. Mr.Thibert asked Mr.Gibson if a majority of the members is required to approve financing.Mr.Gibson noted he will research the alternatives and provide the answer at a later date.Chair Borgeson requested more information from Mr.Gibson and AEA regarding the specifics of the Battle Creek Project if only two members wanted to participate.Mr.Lamb stated that if even one utility was willing to do the project and pay the rates and have AEA finance it,AEA would not be able to go to the market to finance it due to the March 2016 letter. Mr.Lamb discussed the letter to AEA from CEA,GVEA,and MEA in March of 2016,which asserts if there was not a path for the electricity to come forward there would be a legal challenge of the obligation to pay the debt under the Power Sales Agreement (PSA).This letter puts the financial security of the asset at risk.AEA's bond counsel has communicated to the three utilities'attorneys AEA would not be able to go out to the market for Battle Creek bond financing until the security issue raised in the letter for repaying the debt has been resolved in writing.Mr.Thibert thought the issue was resolved but Chair Borgeson stated they did not retract that position.GVEA has concerns contributing to an AEA-owned asset and Battle Creek is part of it.Mr.Lamb requested the PSA enforceability issue related to the bond be resolved and the utility participation in Battle Creek be resolved. Chair Borgeson noted there is not complete alignment of the utilities going forward with the Battle Creek Project.At the previous meeting,one member utility stated they would not participate in the diversion and they did not contribute to the $800,000 engineering construction drafts but they can join the project prior to financing discussions. Chair Borgeson tasked Mr.Gibson to review the issues and place it on the agenda for the next meeting.Chair Borgeson stated the March 2016 letter and responses will be provided to all members. MOTION:Mr.Janorschke made a motion requesting AEA,with support from the Finance Committee,to provide Battle Creek Project financing models within 30 days that assume the security issues are resolved.Motion seconded by Mr.Johnston. The motion passed,with Mr.Johnston abstaining. Mr.Johnston stated MLP expressed an interest not to participate in the Battle Creek Project. B.National Hydroelectric Association Membership Mr.Carey stated AEA belonged to the NHA using Susitna-Watana Hydro funds but that is no longer available.He requested the membership of $10,000 be renewed through the BPMC.All BPMC Minutes 2/17/17 Page 2 of 5 Bradley utilities and AEA would receive membership benefits.Mr.Carey noted this is not a current budget line item and recommended the decision be made by motion. MOTION:A motion was made to approve an expenditure of $10,000 for AEA's NHA membership,as outlined in Mr.Carey's January 6,2017 memo.Motion seconded by Mr. Janorschke. A roll call vote was taken,and the motion passed unanimously. Cc,Draft FY18 Bradley Budget Ms.Garner informed members have until April 1st to amend and approve the draft FY18 Bradley Budget.Any amendments are to be brought to Ms.Garner and the finalized budget will come before the full Committee for approval at the next meeting.Ms.Garner highlighted the summary budget changes from last year.Mr.Day noted he is nearly full-time as the Bradley Project Manager.Mr.Owens is the Power Production Manager.Mr.Jorgensen is the Director of Power.Mr.Day explained the construction year spans the summer and the fiscal year splits the summer.He reviewed the short-term capital projects that were approved,funded and began during this year's budget,but will not be completed until next fiscal year.Approximately $600,000 of the budgeted amount will be refunded to the members with the request for carry- over into the FY18 budget for completion of the short-term projects. Chair Borgeson asked if the budget includes an expense item for reclamation of the project after the life of the dam.Mr.Carey is not aware of any reclamation funding and a reclamation requirement is not a typical practice for FERC projects.Mr.Carey noted the expected life of the dam is 500-plus years.The State has no obligation to restore the lake to its original condition under the FERC license. Chair Borgeson inquired if the spillway work is considered project work.Mr.Thibert and Mr. Janorschke stated the spillway work is project work. D.Bradley O&M Procurement Update Mr.Lamb requested input from the members regarding opening the RFP process to others beyond the current qualified responders.In a previous conversation,Mr.Borgeson expressed wanting to open the RFP procurement to include more utilities to reach the most cost effective option.Regulations restrict the pool of qualified utilities as an operator.It states the two options for the project operator are either an AEA employees or a qualified utility.A qualified utility is defined as a certified utility in the market area of the project so that would include the Railbelt. The statutes are less restrictive and allows flexibility on the operator.Mr.Lamb stated the regulation language can be changed to broaden the definition of qualified utility if that is what the BPMC would like. Chair Borgeson requested information on the difficulty and length of time to broaden the scope of the regulations.Mr.Bjorkquist believes the adoption process takes approximately 90 days. MOTION:Mr.Lamb made a motion to modify the regulations such that the largest number of qualified responders are permitted for the O&M procurement RFP.Motion seconded by Mr.Johnston. Mr.Izzo noted the challenge with the motion is the definition of the use of the word qualified. Mr.Thibert requested more time to review the issue and the motion.Mr.Johnston asked for an update on the RFP timeframe.Mr.Lamb stated the timeframe is two years,minus the month- and-a-half that has already passed.The decision was made at the previous meeting the RFP will provide an all-inclusive scope describing the criteria of a qualified responder. BPMC Minutes 2/17/17 Page 3 of 5 MOTION:Mr.Thibert made a motion to table the motion to modify the regulations until the March 2017 meeting.Motion seconded by Mr.Johnston. The motion to table passed unanimously. The motion to modify the regulations was tabled until the March 2017 meeting. Chair Borgeson requested an update on the envisioned process of excluding a utility,who will participate in the RFP,from the evaluation committee.Mr.Lamb explained an inquiry will be sent to the utilities regarding participation in the RFP.Any utility that is interested in responding to the RFP will not participate in the scoping development process.Any utility that will not respond to the RFP will participate in the scoping development process.If all utilities are interested in responding to the RFP,AEA will develop the scope with the assistance of outside knowledgeable and qualified persons. E.Bradley Project Organizational Chart Chair Borgeson reported the Bradley Project Organizational Chart was erroneously sent from his office to all members.He apologized for the error.It was meant to go to the Railbelt managers. Mr.Lamb requested more information regarding the chart and its intent.Chair Borgeson stated he has nothing further to add and the chart was sent to Mr.Lamb in error.Mr.Lamb commented Bradley is an AEA-owned public asset and the organizational chart related to Bradley does not include the owner.Mr.Lamb asked the member utilities present at the meeting to comment.No utility responded. Chair Borgeson expressed this is a year of unity for the Railbelt with positive ways going forward to provide low-cost energy to members.As they look at strategic planning,they are looking at a lot of models and options for the Railbelt utilities. Mr.Lamb asked if Bradley Lake,an State public owned asset,is an option.Mr.Borgeson stated he had nothing further to add. Mr.Thibert reported he had not seen the chart before it was accidentally sent out to all members.He noted strategic discussions have occurred regarding options because the State has been reviewing the agencies of AEA,AHFC,and AIDEA. Mr.Lamb stated the utilities benefited when the State helped build Bradley and paid for half of with it $165M of cash.The State helped build the Intertie and works to support the Railbelt group regarding Battle Creek to support low cost energy.He convened his disappointment and will discuss this with the AEA Board regarding the utilities'lack of transparency and lack of willingness to discuss the organizational chart. 8.COMMITTEE REPORTS The OMB Committee met and the primary focus was the budget,which was forwarded to the Budget Committee. Ms.Garner informed the expense report through December is included in the member packets. There were no questions. BPMC Minutes 2/17/17 Page 4 of 5 9.OPERATOR REPORT Mr.Day submitted the Operator Report.There were no questions. 10.COMMITTEE ASSIGNMENTS Chair Borgeson reviewed assignments.Mr.Gibson will review alternative scenarios,including legal issues,for the Battle Creek Project with respect to less than 100%of Bradley member utilities participating.The Finance Committee will provide information to the utilities on the financing costs and models of the Battle Creek Project.Mr.Gibson will review the March 2016 letter and provide the letter and responses to all member utilities. 11.MEMBERS COMMENTS Mr.Izzo requested a future update on the Boston Consulting Group (BCG),AO 281,and the recommendation regarding the merger of AEA and AHFC,specifically concerning the AEA- owned assets,Intertie and Bradley Project.Mr.Lamb stated there is legislative intent outside of AO 281 which had multiple scope questions that have to do with the colocation of agencies and not the merging of agencies.Mr.Lamb is not aware the Administration has taken a position on the recommendations of BCG. Mr.Foutz expressed appreciation to Mr.Day and staff for tightening their operating budget. Mr.Lamb commented the receipt of the organizational chart causes concern for AEA.The lack of transparent discussion is disconcerting.Mr.Lamb expressed his guard is up and he is wary. Mr.Thibert responded the outcomes of the studies by the Administration could have an impact on members'operations and the ability of AEA to continue its current functions.He believes the utilities are reviewing ways to protect themselves. Chair Borgeson expressed appreciation to Ms.Webster for her extraordinary efforts.He expressed his confidence in Mr.Day and thanked him for returning to the Bradley project.He expressed appreciation for those in attendance for their work. 12.NEXT MEETING DATE -TBD The next meeting date is March 17,2017. 13.ADJOURNMENT There being no further business for the committee,the meeting adjourned at 11:51 a.m. BY: Cory Borgesgon,Chair Attest:MWbe LoMichaelLdmb'7/ Alaska Energy Authority,Secretary BPMC Minutes 2/17/17 Page 5 of 5 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING AGENDA Friday,February 17,2017 10 a.m. Alaska Energy Authority's Board Room 813 West Northern Lights Boulevard,Anchorage,AK To participate,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 --Dec.14,2016 7.NEW BUSINESS A.Battle Creek project update AEA B.NHA Membership AEA C.Draft FY18 Bradley Budget Budget Committee 8.COMMITTEE REPORTS 9g.OPERATOR REPORT 10.COMMITTEE ASSIGNMENTS 11.MEMBERS COMMENTS 12.NEXT MEETING DATE -TBD 13.ADJOURNMENT BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Alaska Energy Authority,Anchorage,Alaska December 14,2016 1.CALL TO ORDER Chair Borgeson called the regular meeting of the Bradley Lake Hydroelectric ProjectManagementCommitteetoorderat9:55 a.m. 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 (MatanuskaElectricAssociation[MEA]);Mark Johnston (Anchorage Municipal Light&Power [MLP]);BradJanorschke(Homer Electric Association [HEA));and John Foutz (Seward). 3.PUBLIC ROLL CALL Bryan Carey,Jocelyn Garner,Melissa St.Denis,Kelli Veech,Kirk Warren,Teri Webster,BrandiWhite(AEA);Dave Gillespie (ARCTEC);Brian Bjorkquist (Attorney General's Office [AGO)]);Brian Hickey,Mark Johnson,Burke Wick (CEA);Emily Hutchinson (phone),Larry Jorgensen,Alan Owens,Bob Day (HEA);Gary Kuhn,David Pease (MEA);Kirk Gibson (Mcdowell RacknerGibsonPC);Anthony Scott,Jeff Warner (MLP);Gary Dixon.(Swalling &Associates);andSydneyHamilton(Accu-Type Depositions)PUBLIC COMMENTS The motion passed |nanimously. 6.APPROVAL OF PRIOR MINUTES -October 19 and October 31,2016 Mr.Lamb noted the agenda correctly reflects the minutes are dated October 27,and should be corrected for the record as October 31.There was no objection to the date correction. MOTION:Mr.Janorschke made a motion to approve the minutes of October 19 and October 31,2016.Motion seconded by Mr.Izzo. The motion passed unanimously. 7.NEW BUSINESS DRAFT BPMC Minutes 12/14/16 Page 1 of 5 A.Election of Officers Mr.1zzo nominated the existing slate of officers for reelection;Chair Borgeson,Vice-Chair Thibert,and Secretary/Treasurer Lamb.There were no objections. MOTION:Mr.Janorschke made a motion to elect the existing slate of officers;Chair Borgeson,Vice-Chair Thibert,and Secretary/Treasurer Lamb.Motion seconded by Mr. Foutz. A roll call was taken,and the motion passed unanimously. B.FY16 Audit and Refund Mr.Gary Dixon of Swalling &Associates presented the unmodified Independent Auditor'sReportonthespecialpurposefinancialstatementsoftheOperatingFundandRevenueFund.Mr.Dixon reviewed the 2016 budget,actual,and variance numbers.The analysis includednotestofinancialstatementsofcashflow,statements.of expenses,'contracts and agreements,and related party transactions.Mr.Dixon discussed the auditor's responsibilities and themanagement's responsibilities followed duringthis audit.There were no changes to accounting principles,no difficulties during the audit,and no changes to AEA's provided information.Theonlysuggestionnotedwastheretainageobligationshouldbaccountedasapayableinside oftheR&C Fund.. Chair Borgeson expressed appreciation t Mr:Dixon forhis lligent work completing the audit,and to HEA and Mr.Owens for the great fi ancial MOTION:Mr.Janorschke made a motion to accept the FY16Audited FinancialStatementsandapprovearefundtotheutilitiesof$2,120,374,broken out as $1,064,413fromtheO&M Fund and $1,055,961 from theR&C Fund.Motion seconded by Mr.Foutz.A roll call was taken,and the motion passedunanimously. Chair Borgeson expressed appreciation to Ms.'Garner and AEA staff for their diligent workduringtheauditprocess.Lambexpressed his pridein the AEA staff for their efforts. Mr.Carey reviewed the Battle Creek Project update data sheet provided to members.He noted the scheduled call with FERC Dam Safety on December 13th went well and an additionalmeetingisscheduledinJanuary.Mr.Carey informed no comments were received on the DNRpublishedNoticeofWaterRightsApplicationandtherightsareexpectedtobeissuedin January.No issues are expected regarding the land lease amendment with DNR. Mr.Carey outlined the 2017 schedule.The final cost estimate is slated for February.Final plans and specs are to be reviewed by FERC Dam Safety in March.The financing discussions among the utilities regarding agreements and modifications need to move forward in parallel to the final design specifications.Bidding could occur as soon as June.A short list of qualified contractors would participate in the site visit and submit their bids by late September or October. The contract is scheduled to be awarded in October. Chair Borgeson suggested a planning session in January to discuss financing options and the effects of project participation and non-participation by the utilities. DRAFT BPMC Minutes 12/14/16 Page 2 of 5 D.Notice for O&M Agreement Mr.Gibson informed that during the June 15th,2016 meeting,the Committee extended the time for termination of the O&M Agreement between AEA and Homer for six months,and extended the end date of the termination period for six months.Those extension dates expire December 30,2016.Mr.Gibson provided a draft amendment if the Committee decides to extend the agreement again.Mr.Gibson noted AEA expressed concerns regarding the process of a new request for proposal (RFP).Mr.Lamb informed AEA is obligated to follow and address nondelegable duties under the Bond and Power Sales Agreement.This includes ensuring the project is operating at the lowest reasonable cost and in an efficient,economical manner. MOTION:Mr.Johnston made a motion to provide notice to Homer Electric Association of the termination of the contract within two years,and to begin the process of an RFP tofindanoperatorthatwouldoperatetheprojectproperlyiinanefficientandeconomicalmanneratthelowestreasonablecosttothepurchasers.Motion seconded by Mr.Foutz. Mr.Lamb cautioned about rushing the RFP process.He believes it is important the RFPprovideanall-inclusive scope of the project with input from utilities and AEA Mr.Bjorkquist requested HEA,on the record,confirm suppt of the direction of the Committeetoapprovethemotion.Mr.Janorschke Stated HEA agreesto allowing the RFP process tooccurandsharestheopiniontherearenoassurancesabidwillcomeinlowerthanthecurrentcosts.Mr.Janorschke believes one of the agreements,AS 42.05,narrows the qualifications oftheoperatortooneoftheCommitteeparticipants.:Mrz Bjorkquistdoes not believe Mr.Janorschke's comments'and interpretations.are accurate.:Mr.Bjorkquist also believesit ishighlyunlikelyanon-Committee member operator could offer a lower bid.Mr.Izzo expressed support for the motion as ap dent business practice.He believes HEAhasprovidedexcellentworkfortheproject. Mr.Carey req provide rep esenta es to work with him regarding constructionoftheRFPlanguagewithregardtoqualifiicationsandspecificdutiestobeincluded.ChairBorgesoninformedacommitteewillbeassignedtofulfillhisrequest.Chair Borgeson expressed his comfort iin HEA's performance.He expressed support for theRFPasaprudentandduediligentpractice.He believes the RFP will provide a great learningopportunitytounderstandwhatittakestooperatethefacility,and will lead to better decisions. A roll call was taken,a motion failed,with Mr.Lamb voting against. Mr.Gibson informed the affirmative vote of four members with greater than 51%and the affirmative vote of AEA is required for the motion to pass because it is for the maintenance and operation of the project. Mr.Johnston inquired as to AEA's objection to the motion.He informed the two year's notice is required to be given by the end of December,even if HEA remains the operator.Mr.Lamb requested a revote on the motion.He did not realize a no-vote from AEA would automatically fail the motion.Mr.Lamb noted the Committee previously sourced analysis of HEA's operations and the report came back favorable.He is in favor of HEA continuing operations and is DRAFT BPMC Minutes 12/14/16 Page 3 of 5 cognizant of the concerns of the employees currently operating the project.Chair Borgeson allowed Mr.Lamb to reconsider his vote on the motion. MOTION:Mr.Johnston made a motion to provide notice to Homer Electric Association of the termination of the contract within two years,and to begin the process of an RFP to find an operator that would operate the project properly in an efficient and economical manner at the lowest reasonable cost to the purchasers.Motion seconded by Mr.Foutz. A roll call was taken,and the motion passed unanimously. E.FERC Federal Land Fees Mr.Carey provided the report on the FERC Federal land fees.”He explained BPMC and theAlaskaGroup's attorney Van Ness Feldman (VNF)appealed FERC's 2016 fees and petitionedforrulemakingtochangethelandfeerulesforAlaska...FERC denied the appeal of the 2016fees.FERC invited the Alaska Group to further pursue the petition. NNF recommends theAlaskaGroupfurtherpursuethepetitiontochangethelandfeerulesforAlaska.VNF hasexhaustedtheinitialbudgetforthiseffort.Mr..Carey requested the Committeeincrease theVNFbudgetitemby$5,000 to amply cover the over-budgeted amount due to VNF and topursuetheFERCpetitionatanestimatedcostof$4, MOTION:Mr.Johnston made a motion to approve the additional paymentof up to $5,000forlegalcounseladdressingtheissues.fegarding the FERC Federal land fees.MotionsecondedbyMr.Foutz. A roll call was taken,and the motion passed unanimously. OPERATOR REPORT. Mr.Owens su Report.There were no questions. Chair Borgeson expressed appreciation to Mr.Owens and the project staff. 40.COMMITTEE ASSIGNMENTS Chair Borgeson requested each utility and AEA assign a representative by December 22,2016, to form the Battle Creek Project Finance Committee.The Finance Committee will then be tasked with starting discussions with AEA regarding Battle Creek financing. Chair Borgeson requested each utility and AEA assign a representative by January 31,2017,to form the Operator Procurement Advisory Committee.Any utility who intends to submit a bid for the RFP must provide notice to the Committee and will not be specifically part of the Advisory Committee to mitigate any conflicts of interest.Access to the utilities'personnel is available as necessary. DRAFT BPMC Minutes 12/14/16 Page 4 of 5 11.MEMBERS COMMENTS Mr.Foutz wished everyone a merry Christmas and happy New Year. Mr.Janorschke wished everyone a happy New Year. Mr.Izzo wished everyone a merry Christmas and happy New Year. Mr.Johnston echoed the good holiday wishes. Mr.Thibert wished everyone happy holidays.Mr.Thibert specifically expressed the fact ofgoingouttobiddoesnotmeantheCommitteedoesn'support the current team at the project.He noted the Committee supports the team and wanted.to work together to allay any concerns the team may have. Chair Borgeson expressed appreciation to all.is year.He looksattendancefortheirwo forward to next year and wished happy holida 12.NEXT MEETING DATE -TB The next meeting date is to be determined fora date in February. 13.ADJOURNMENT There being no furth adjourned at 11:00 a.m. Cory eson,Chair Attest: Michael Lamb Alaska Energy Authority,Secretary DRAFT BPMC Minutes 12/14/16 Page 5 of 5 Legislative Approval John Burns,Lead BRADLEY PROJECT ORGANIZATIONAL CHART BRADLEY UTILITIES 4 i | LEE THIBERT,CO-LEAD CORY BORGESON,CO-LEAD T |4 t ( | 1 Project Manager,Vacant Ron Saxton,Chief Architect Michelle Detwiler,Admin Support a ', a N\ Finance Regulatory Sherri Highers,Lead Vacant,Lead Modeling Anthony Scott,Lead DRAFT CONSTRUCTION OF WEST FORK UPPER BATTLE CREEK DIVERSION BRADLEY LAKE HYDROELECTRIC PROJECT 2 7 '_-a emaanen aa | DOWL/EngSol OPCC er Me fd heat me hon Unit Price 'Total item Price G General TITER | G-01 71 13-01 First Construction Season Mobilization (5%of Total Amount Bid,Max)1 LS {$962,037.80]$962,038 G-01 71 13-02 _|First Construction Season Demobilization (2%of Total Amount Bid,Max)1 LS |$393,113.97 |$393,114 G-01 71 13-03 Second Construction Season Mobilization (3%of Total Amount Bid,Max)1 LS |$367,130.12 |$367,130 G-01 71 13-04 -_|Second Construction Season Demobilization (2%of Total Amount Bid,Max)1 LS |[$530,392.80}$530,393 G-01 71 13-05 {Third Construction Season Mobilization 1 LS |$131,438.85 |$131,439 G-01 71 13-06 _{Third Construction Season Demobitization 1 LS {$196,830.12 |$196,830 G-01 32 26-01 {Construction Surveying and Staking 1 LS }$327,500.00 |$327,500 G-01 3301-01 _|Initial Submittals 1 LS |$39,300.00 |$39,300 G-01 5101-01 Contractors Office and Temporary Utilities 1 LS |$795,170.00 |$795,170 G-01 52 01-01 Contractor Housing 4 LS |$2,644,890.00 |$2,644,890 G-01 5201-02 _|Contractors Quality Contro!Program 1 LS |$97,670.98 |$97,671 G-01 57 01-01 Temporary Erosion Control (SWPPP Implementation)1 LS {$648,888.85 |$648,889 G-01 57 01-01 Topsoil Stripping &Replacement 1 LS |$467,237.70}$467,238 G-01 5702-01 _|Revegetation 1 tS [$157,200.00 |$157,200 G-31 0101-01 _{Pre-Split Blasting 20,000 SY |$51.271 $1,025,468 G-31 05 19-01 Geotextile Separator Fabric 10,000 sy |$438 |$43,754 G-31 1101-01 -_{Grubbing 32 AC {$6,550.00 |$209,600 G-31 3301-01 _|Rock Drains for Rock Cut Slopes 5,625 LF {S$13.86 |$77,961 G-31 33 01-02 Permanent Rock Anchors for Rock Cut Slopes 105 EA |$1,444.93 |$151,718 G-31 3301-03 _|Testing for Permanent Rock Anchors 10 EA |$622.25 |$6,223 G-31 3301-04 _|Permanent Rock Netting for Rock Cut Stopes 1,000 sy |$63.97 |$63,967 G-33 0501-01 {Culverts -30 inch 550 LF |$191.26 |$105,193 G-33 05 01-02 Culverts -36 inch 1,750 LF [$248.90 1 $435,575 G-33.05 01-03 {Culverts -48 inch 300 LF [S$447.444 $134,233 G-33 05 01-04 -[Riprap Lining and Channel Protection (as directed)800 cy |$35.70 |$28,558 Aggregate Stockpile for WEBCD Access Roads 500 cy |$24.89 |$12,445 RL Roads -Lower Access Road j RL-31 0001-01 [General Excavation 17,000 cy |$11.15 |$189,518 RL-31 0001-02 [Rock Excavation 30,000 cy 1$20.19 |$605,613 RL-31 0001-03 [Embankment Fill 22,000 cY |$5.371 $118,162 RL-31 0001-04 _[Sub-base Fill 9,000 cy |$28.68 |$258,083 RL-310001-05 [Surface Course (SC)2,700 cy [3 39.25 |$105,969 RL-31 00 01-06 _|Traffic Safety Barrier 4,000 LF I$16.41 |$65,657 RU Roads -Upper Access Road i & RU-31 0001-01 |General Excavation 25,000 cy {$9.68 |$242,023 RU-31 0001-02 {Rock Excavation 68,000 cY |{$26.63 |$1,810,996 RU-31 0001-03 {Embankment Fill 43,000 cy |$§.321$228,700 RU-31 0001-04 [Sub-base Fill 14,000 cy {$28.68 1 $401,463 RU-31 0001-05 {Surface Course (SC)3,500 cy {$39.25 |$137,367 RU-31 0001-06 __[Traffic Safety Barrier 8,000 LF {$16.41 |$131,314 RU-32 32 34-01 _[Retaining Wall -Type A -Mechanically Stabilized Earth (MSE)Walls 15,000 SF 1$45.63 |$684,410 RU-32 32 34-02 {Retaining Walt -Type B -Anchored Walls 19,000 SF I$96.60 |$1,835,389 RU-32 32 34-03 _[Retaining Wall Fill 21,000 cy {$32.23 |$676,746 RU-32 32 34-04 {Retaining Wall Foundation -Micropiles 150 LF I$1,965.00 |$294,750 RU-32 32 34-05 [Retaining Wall Foundation -Structural Concrete 75 cY |$1,048.00 |$78,600 P Pipeline Si P-03 3001-04 [Pipe Anchor Blocks 55 EA {$6,886.67 |$378,767 P-03 30 01-05 Pipe Access Port with 8-inch Combination Air Valve 4 EA |$34,215.89]$136,864 P-03 3001-06 _|Pipe Access Port with 6-inch Air Release Valve 5 EA |]$33,757.39 |$168,787 P-31 0001-14 Additional Pipe Bedding as Directed 500 cY {$40.751 $20,377 P-33.0501-02 _{HDPE Pressure Pipeline (63-inch)8,500 LF I$4,201.27 |$10,210,795 P-33.05 01-03 _jintake Pipeline (96-inch)400 LF I$3,328.71]$1,331,484 P-33 0501-04 _{Outfall Pipeline (84-inch)350 LF I$1,971.55 |$690,043 P-33.05-01-05 _{Intake Transition Pipe 1 LS [$220,318.42 |$220,318 P-3305 01-06 _|Outfall Transition Pipe 1 LS [$82,343.98 |$82,344 P-330501-07 _|HDPE Pressure Pipe Drain 1 LS 1$29,026.98 |$29,027 P-33 05 01-10 HDPE Pipe Fusion Tests 5 EA [$6,248.70 |$31,244 P-33.0501-011 _|Excess Pipe -HDPE Pressure Pipeline 150 FT |$674.65 |$101,198 \\ANC-FS\anc-projects\27\90061-01\56CostEstimate\WFUBCD EPCC -Draft 2-9-17.xlsx lof2 2/9/2017 D=a '_assngeeenee annealCONSTRUCTIONOFWESTFORKUPPERBATTLECREEKDIVERSIONNeves" BRADLEY LAKE HYDROELECTRIC PROJECT nasa enaeaatl ciemnatte .w | -.. DOWL/EngSo!OPCC .i Description aaa acai ha ca ere ears.Unit Price 'Total Item Price D Diversion Dam and Intake 238.5428 D-03 3001-01 _[Concrete Diversion Structure 300 cy {$1,738.37 |$§21,511 0-03 3001-02 _|Concrete Intake Structure 280 LS {$1,733.13 |$485,276 D-03 30 01-03 Foundation Concrete Fill 30 cy [$503.04 |$15,091 D-03 3001-04 {Concrete Cap on Downstream Shell 80 cy {$427.06 |$34,165 D-03 40 01-01 Sediment Training Wall 1 LS {$25,309.20 |$25,309 D-31 00 01-01 General Excavation 1,500 cy {$16.57 |$24,857 D-31 0001-02 [Rock Excavation 3,500 CY {$69.97 |$244,885 D-310001-03 [Embankment Fill 200 cy {$25.79 |$5,159 0-310001-04 _|Sub-base Fill 800 cy [$28.68 |$22,941 D-310001-05 _|Surface Course (SC)200 cy 1$39.25 |$7,850 D-31 00 01-13 Rock Fill for Diversion Dam 900 CY {$25.14]$22,625 0-31 23 13-01 Intake Structure Intitial Foundation Cleaning for Mapping 4 LS }$7,478.79 |$7,479 D-31 23 13-02 Diversion Structure Intitial Foundation Cleaning for Mapping 1 LS }$9,534.18 |$9,534 D-31 23 13-03 Intake Structure Final Foundation Cleaning 1 LS |$20,014.18 |$20,014 D-31 23 13-04 Diversion Structure Final Foundation Cleaning 1 LS |$20,014.18 |$20,014 D-31 23 13-06 Diversion and Intake Wall Anchors 25 EA {$2,606.90 |$65,173 D-31 23 13-07 _[Diversion Grout Curtain -Drill 600 FT {$22.81 |$13,684 D-31 23 13-08 Diversion Grout Curtain -Water Test 5 EA |$622.25 1 $3,111 D-31 23 13-09 Diversion Grout Curtain -Pressure Grouting 300 Sack |$78.271 $23,482 D-31 23 13-11 Diversion Foundation Drains 100 LF I$42.18 |$4,218 D-31 23 13-12 Diversion Foundation Denta!Grout 10 cy [$476.84 |$4,768 D-31 23 19-01 Control of Water -Diversion Dam and tntake 1 LS |$153,309.30 |$153,309 D-26 00 77-01 Diversion Electrical Controls &Instrumentation 1 LS [$262,000.00 |$262,000 D-26 00 77-02 Electrical &Communication Service to Diversion 4 LS |$917,000.00 |$917,000 D-32 32 34-01 Retaining Wall -Type A (MSE Wall)1,120 SF [$50.71|$56,795 D-32 32 34-03 _[Retaining Wall Fill 650 cy [$36.05 |$23,433 D-35 22 26-01 Sluice Gates,Operators and Flow Meters 1 LS |$268,232.98 !$268,233 D-??22 77-02 Diversion Misc.Metals (Trash rack,railings,etc.)1 ts 1$36,624.98 |$36,625 QO Outfatt 0-03 3001-03 [Concrete Outfatl Structure 1 LS }$98,250.00 |$98,250 O-310001-01 |General Excavation 12,000 cy [$8.291 $99,508 Q-31 0001-02 [Rock Excavation 6,000 cy {$40.02 |$240,123 0-31 00 01-03 Embankment Fill 19,000 cy {$11.74 |$223,014 0-31 0001-04 _|Sub-base Fill (SB)3,200 cY [$28.691$91,805 O-310001-05 _|Surface Course (SC)1,000 $39.25 |$39,248 0-31 0001-084 |Geomembrane Cushion Bedding 450 cy {$84.43]$37,993 0-31 0001-12a _|Riprap -EFUBC channel,Outfall Basin,and Channel 300 cy [$35.70 |$10,709 0-31 05 19-02 Geomembrane 1,350 SY [$20.48 |$27,642 0-31 23 19-01 Control of Water -Outfall 1 ts |$51,762.03 |$§1,762 TOTAL AMOUNT BID $35,538,096 Unlisted Items Design and Construction Contingency 15%$§,330,714 Escalation 3.5%$1,243,833 Construction Cost Subtotal $42,112,644 Pre-Bid Clearing &Surveys 250,000 Owner Administration Costs(4 yrs @ $125k)§00,000 Engineering &Reporting (3yrs @ $250,000)750,000 Construction Management (Site Manager,Resident Engineer,etc)2,000,000 Owner's Quality Assurance Program (QCIP)300,000 Owner and Engineer Travel,Meals,and Lodging 500,000 Owner's Survey 200,000 Non-Contract Costs $4,500,000 |JAggregate Stockpile for Operator (NOTIN TOTAL){10,000 |cy [$24.89 |$248,900| \\ANC-FS\anc-projects\27\90061-01\56CostEstimate\WFUBCD EPCC -Draft 2-9-17 xlsx 2of2 2/9/2017 From:Bryan Carey Sent:Friday,January 06,2017 10:49 AM Subject:National Hydropower Association AEA belonged to the National Hydropower Association (NHA)for the last several years with Susitna Hydropower Project funding.As that funding source is no longer available the only potential funding source to belong as a member would be the Bradley Project.NHA has agreed that Bradley Hydropower Project would receive: e Special annual membership fee of $10,000 e All Bradley utilities and AEA would receive membership benefits (CEA is currently an NHA member and NHA expects they will continue their separate membership) *Hydropower legislation newsletter,NHA Today *Ability for all staff to subscribe to all NHA Alerts (email groups)covering legislative and regulatory affairs,public affairs and strategic communications,and the Hydraulic Power Committee (forum for information exchange for owner/operators) *-Registration discounts to all NHA events,including Waterpower Week in Washington, Regional Meetings,Hydraulic Power Committee Fall Retreat and Workshops *Voice in national hydroelectric policy Operation Excellence database (Hydro owners database of issues and how solved - O&M,dam safety and security,environmental mitigation,worker safety) At the December 2016 O&D meeting members thought there was value in the membership.However, membership is not included under any O&M budget category so a membership would need to be approved by the BPMC.Please let AEA know if the BPMC members approve AEA using $10,000 from the Bradley FY17 O&M budget to pay for a membership. Bryan Carey,P.E. AEA &AIDEA (907)771-3065 Bradley Lake Project Management Committee Meeting Friday,February 17,2017 Agenda Item:7B -Approval of NHA Membership MOTION:Move that the Bradley Lake Project Management Committee approve membership of Alaska Energy Authority in the National Hydroelectric Association in 2017 for $10,000.To be paid for out of the 2017 Operating and Maintenance budget. Move: Second: From:Bryan Carey Sent:Friday,January 06,2017 10:49 AM Subject:National Hydropower Association AEA belonged to the National Hydropower Association (NHA)for the last several years with Susitna Hydropower Project funding.As that funding source is no longer available the only potential funding source to belong as a member would be the Bradley Project.NHA has agreed that Bradley Hydropower Project would receive: e Special annual membership fee of $10,000 e =All Bradley utilities and AEA would receive membership benefits (CEA is currently an NHA member and NHA expects they will continue their separate membership) *Hydropower legislation newsletter,NHA Today *-Ability for all staff to subscribe to all NHA Alerts (email groups)covering legislative and regulatory affairs,public affairs and strategic communications,and the Hydraulic Power Committee (forum for information exchange for owner/operators) *-Registration discounts to all NHA events,including Waterpower Week in Washington, Regional Meetings,Hydraulic Power Committee Fall Retreat and Workshops *Voice in national hydroelectric policy Operation Excellence database (Hydro owners database of issues and how solved - O&M,dam safety and security,environmental mitigation,worker safety) At the December 2016 O&D meeting members thought there was value in the membership.However, membership is not included under any O&M budget category so a membership would need to be approved by the BPMC.Please let AEA know if the BPMC members approve AEA using $10,000 from the Bradley FY17 O&M budget to pay for a membership. Bryan Carey,P.E. AEA &AIDEA (907)771-3065 Bradley Lake Project Management Committee Meeting Friday,February 17,2017 Agenda Item:7B -Approval of NHA Membership MOTION:Move that the Bradley Lake Project Management CommitteeapprovemembershipofAlaskaEnergyAuthorityintheNational Hydroelectric Association in 2017 for $10,000.To be paid for out of the 2017 Operating and Maintenance budget. Move:™ichael Lawl Second:BR d)Wa norsch Khe Bradley Lake Operations &Maintenance Budget Entry Page -Payroll FY 2018 Budget Summary comparison to prior year -HEA Payroll %change FY2016 FY2017 FY2018 FY17 to FY18 1,891,369.68 1,874,665.79 -1,766,090.75 -5.8% Decrease due to more refined ST Rate and ST Hours,transition in personnel Den on itd:0 0 U Ba le O *)O HEA |535 -Operation Supervision &Eng.HEA O&M Contract Director of Power 159.00 222.00 $35,298.00 HEA [535 -Operation Supervision &Eng.HEA O&M Contract Power Production Manager 155.00 444.00 5 68,820.00 HEA [535 -Operation Supervision &Eng.HEA O&M Contract Bradley Project Manager 164.76 888.00 100.00 75.00 J 153,806.88 HEA 1535 -Operation Supervision &Eng.HEA O&M Contract Engineering as needed 127.70 60.00 7,662.00 HEA |541 -Maint.Supervision &Engineering HEA O&M Contract Director of Power 159.00 222.00 J 35,298.00 HEA [541 -Maint.Supervision &Engineering HEA O&M Contract Power Production Manager 155.00 444.00 5 68,820.00 HEA {541 -Maint.Supervision &Engineering HEA O&M Contract Bradley Project Manger 164.76 888.00 100.00 75.00 J 153,806.88 HEA |541 -Maint.Supervision &Engineering HEA O&M Contract Engineering as needed 122.18 120.00 5 14,661.60 HEA |537 -Hydraulic Expenses HEA O&M Contract Plant Foreman Crew 1 90.43 177.00 91.36 10.00 118.00 25.00 |$19,869.71 HEA [537 -Hydraulic Expenses HEA O&M Contract Plant Foreman Crew 2 90.43 177.00 91.36 10.00 118.00 25.00 |$19,869.71 HEA |537 -Hydraulic Expenses HEA O&M Contract Plant Rover Crew 1 83.31 177.00 82.79 10.00 106.57 25.00 |$18,238.02 HEA [537 -Hydraulic Expenses HEA O&M Contract Plant Rover Crew 2 83.31 177.00 82.79 10.00 106.57 25.00 |$18,238.02 HEA {537 -Hydraulic Expenses HEA O&M Contract Plant Rover Trainee 83.31 177.00 82.79 10.00 106.57 25.00 |$18,238.02 HEA [538 -Electric Expenses HEA O&M Contract Plant Foreman Crew 1 +on call 90.43 340.00 91.36 10.00 118.00 172.00 |$51,955.80 HEA {538 -Electric Expenses HEA O&M Contract Plant Foreman Crew 2 +on call 90.43 340.00 91.36 10.00 118.00 172.00 |$$1,955.80 HEA {538 -Electric Expenses HEA O&M Contract Plant Rover Crew 1 +on call 83.31 340.00 82.79 10.00 106.57 172.00 |$47,483.34 HEA [538 -Electric Expenses HEA O&M Contract Plant Rover Crew 2 +on call 83.31 340.00 82.79 10.00 106.57 172.00 |$47,483.34 HEA [538 -Electric Expenses HEA O&M Contract Plant Rover Trainee 83.31 340.00 82.79 10.00 106.57 40.00 |$33,416.10 HEA |539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract Plant Foreman Crew 1 90.43 177.00 91.36 10.00 118.00 25.00 |$19,869.71 HEA [539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract Plant Foreman Crew 2 90.43 177.00 91.36 10.00 118.00 25.00 |$19,869.71 HEA |539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract Plant Rover Crew 1 83.31 177.00 82.79 10.00 106.57 25.00 |$18,238.02 HEA |539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract Plant Rover Crew 2 83.31 177.00 82.79 10.00 106.57 25.00 |$18,238.02 HEA {539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract Plant Rover Trainee 83.31 177.00 82.79 10.00 106.57 25.00 |$18,238.02 HEA /539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract Procurement &Accounting as needed 64.46 900.00 $58,014.00 HEA |539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract Clerical,Env.,Safety as needed 90.21 300.00 $27,063.00 HEA [542 -Maintenance of Structures HEA O&M Contract Plant Foreman Crew 1 90.43 177.00 91.36 10.00 118.00 25.00 |$19,869.71 HEA [542 -Maintenance of Structures HEA O&M Contract Plant Foreman Crew 2 90.43 177.00 91.36 10.00 118.00 25.00}$19,869.71 HEA [542 -Maintenance of Structures HEA O&M Contract Plant Rover Crew 1 83.31 177.00 82.79 10.00 106.57 25.00 |$18,238.02 HEA [542 -Maintenance of Structures HEA O&M Contract Plant Rover Crew 2 83.32 177,00 82.79 10.00 106.57 25.00 18,238.02 HEA {542 -Maintenance of Structures HEA O&M Contract Plant Rover Trainee 83.31 177.00 82.79 10.00 106.57 25.00 |$18,238.02 HEA {543 -Maintenance of Res.,Dams HEA O&M Contract Plant Foreman Crew 1 +helicopter 90.43 100.00 91.36 2.00 118.00 12.00 |$10,641.72 HEA [543 -Maintenance of Res.,Dams HEA O&M Contract Plant Foreman Crew 2 +helicopter 90.43 100.00 91.36 2.00 118.00 12.00 |$10,641.72 HEA [543 -Maintenance of Res.,Dams HEA O&M Contract Plant Rover Crew 1 +helicopter 83.31 100.00 82.79 2.00 106.57 12.00 |$9,775.42 HEA [543 -Maintenance of Res.,Dams HEA O&M Contract Plant Rover Crew 2 +helicopter 83.31 100.00 82.79 2.00 106.57 12.00 |$9,775.42 HEA |543 -Maintenance of Res.,Dams HEA O&M Contract Plant Rover Trainee +helicopter 83.31 100.00 82.79 2.00 106.57 12.00 |$9,775.42 HEA {544 -Maint of Electric Plant HEA O&M Contract Plant Foreman Crew 1 90.43 726.00 91.36 25.00 118.00 100.00 |$79,736.18 HEA |544 -Maint of Electric Plant HEA O&M Contract Plant Foreman Crew 2 90.43 726.00 91.36 25.00 118.00 100.00 |$79,736.18 HEA |544 -Maint of Electric Plant HEA O&M Contract Plant Rover Crew 1 83.31 726.00 82.79 25.00 106.57 100.00 |$73,209.81 HEA {544 -Maint of Electric Plant HEA O&M Contract Plant Rover Crew 2 83.31 726.00 82.79 25.00 106.57 100.00 |$73,209.81 HEA [544 -Maint of Electric Plant HEA O&M Contract Plant Rover Trainee 83.31 726.00 82.79 25.00 106.57 100.00 |$73,209.81 HEA 1545 -Maint.Of Misc.Hydraulic Plant HEA O&M Contract Plant Foreman Crew 1 90.43 177.00 91.36 10.00 118.00 25.00 |$19,869.71 HEA Payroll Page 1 of 11 HEA {545 -Maint.Of Misc.Hydraulic Plant HEA O&M Contract Plant Foreman Crew 2 90.43 177.00 91.36 10.00 118.00 25.00 |$19,869.71 HEA {545 -Maint.Of Misc.Hydraulic Plant HEA O&M Contract Plant Rover Crew 1 83.31 177.00 82.79 10.00 106.57 25.00 18,238.02 HEA j545 -Maint.Of Misc.Hydraulic Plant HEA O&M Contract Plant Rover Crew 2 83.31 177.00 82.79 10.00 106.57 25.00 |$18,238.02 HEA {545 -Maint.Of Misc.Hydraulic Plant HEA O&M Contract Plant Rover Trainee 83.31 177.00 82.79 10.00 106.57 25.00 1S 18,238.02 HEA {556 -System Control &Load Dispatching {HEA O&M Contract Engineering time as needed 93.72 220.00 $20,618.40 HEA {571 -Maint.Of Overhead Lines HEA O&M Contract Line Crew (General Maintenance/Patrol 93.74 500.00 95.25 -123.18 100.00 |$$9,188.00 HEA [571 -Maint.Of Overhead Lines HEA O&M Contract Engineering (General Maintenance/Patrol)122.18 20.00 $2,443.60 HEA |571 -Maint.Of Overhead Lines HEA O&M Contract Line Crew (Row Clearing)93.74 95.25 123.18 $: HEA {571 -Maint.Of Overhead Lines HEA O&M Contract Engineering (Row Clearing)122.18 10.00 $1,221.80 HEA {571 -Maint.Of Overhead Lines HEA O&M Contract 93.74 -95.25 123.18 >: HEA |571 -Maint.Of Overhead Lines HEA O&M Contract Engineering (Bradley/SOL RAS Scheme}122.18 80.00 $9,774.40 HEA {571 -Maint.Of Overhead Lines HEA O&M Contract 93.74 -95.25 123.18 $: HEA [571 -Maint.Of Overhead Lines HEA O&M Contract Engineering (Bradley 115 kV Breaker Sync)122.18 80.00 $9,774.40 HEA [571 -Maint.Of Overhead Lines HEA O&M Contract 93.74 :95.25 :123.18 :$: HEA [571 -Maint.Of Overhead Lines HEA O&M Contract 122.18 :$- HEA $ $1,766,090.75 O&M (payroll)$1,683,688.55 transmission (payroll)$82,402.20 HEA Payroll $1,766,090.75 Page 2 of 11 Bradley Lake Operations &Maintenance Budget Entry Page -AP &Other FY 2018 Budget Summary comparison to prior year -HEA AP &Other %change FY2016 FY2017 FY2018 FY17 to FY18 1,264,017.00 1,334,488.00 938,215.00 -29.7% Decrease due to reduced budget for transmission line maintenance projects Dept!FERC .#%Activity sam "me's Sg Cost Type 2 aia 2?a 2-2,AP Detail Description ==Total Cost HEA 1535 -Operation Supervision &Eng.HEA O&M Contract 802010000 -Travel Commercial Travel $10,450.00 HEA |535 -Operation Supervision &Eng.HEA O&M Contract 802020000 -Training Technical Training $9,300.00 HEA {535 -Operation Supervision &Eng.HEA O&M Contract 803010000 -Contractual Office Equip.Maint.$1,000.00 HEA |535 -Operation Supervision &Eng.HEA O&M Contract 804020000 -Supplies &Materials Small Items &Consumables S 2,000.00 HEA [535 -Operation Supervision &Eng.HEA O&M Contract 804020000 -Supplies &Materials Document Control S 2,000.00 HEA |537 -Hydraulic Expenses HEA O&M Contract 803010000 -Contractual Env.&Fish Game Studies S 2,000.00 HEA {537 -Hydraulic Expenses HEA O&M Contract 804020000 -Supplies &Materials Supplies &Materials $2,000.00 HEA [538 -Electric Expenses HEA O&M Contract 802010000 -Travel Travel and Per Diem $7,000.00 HEA [538-Electric Expenses HEA O&M Contract 802020000 -Training Technical Training S 25,000.00 HEA {538 -Electric Expenses HEA O&M Contract 803010000 -Contractual Balancing &Vib Analysis $2,000.00 HEA {538 -Electric Expenses HEA O&M Contract 804020000 -Supplies &Materials Turbine Lube Oil S 3,500.00 HEA {538 -Electric Expenses HEA O&M Contract 804020000 -Supplies &Materials Consumables $6,232.00 HEA {539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract 803010000 -Contractual Housekeeping as needed S 1,800.00 HEA {539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract 803010000 -Contractual Helicopter Transportation $40,000.00 HEA {539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract 803010000 -Contractual Fixed Wing Transportation S 156,000.00 HEA [539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract 803010000 -Contractual Barge Shipping &Docking $25,000.00 HEA [539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract 803010000 -Contractual UPS/FedEx Shipping S 1,200.00 HEA {539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract 803010000 -Contractual Disposal Costs S 2,000.00 HEA {539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract 803010000 -Contractual Telephone &Satellite S 13,025.00 HEA {539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract 803010000 -Contractual Software Support $6,000.00 HEA [539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract 803010000 -Contractual Legal Services $2,500.00 HEA 1539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract 803010000 -Contractual Fuel 5 40,000.00 HEA [539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract 802020000 -Training Training Office and Safety Ss 15,000.00 HEA {539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract 804020000 -Supplies &Materials Safety and Office Supplies S 17,900.00 HEA $539 -Misc.Hydraulic Power Gen Exp.HEA Circuits &Radio -To Bernic}804030000 -Other Costs Bradley circuits to Bernice Lake Radio (HEA)$35,695.00 HEA [542 -Maintenance of Structures HEA O&M Contract 804020000 -Supplies &Materials Upgrade &Repair S 10,713.00 HEA [542 -Maintenance of Structures HEA O&M Contract 803010000 -Contractual Fire Systems Certification S 10,000.00 HEA [542 -Maintenance of Structures HEA O&M Contract 804020000 -Supplies &Materials General Building Repairs S 39,000.00 HEA [542 -Maintenance of Structures HEA O&M Contract 806010000 -Equip &Machinery Power Tools $7,000.00 HEA AP Page 3 of 11 804020000 -Supplies &MaterialsHEA{542 -Maintenance of Structures HEA O&M Contract Overhead Door Repair Supplies $4,000.00 HEA {543 -Maintenance of Res.,Dams HEA O&M Contract 803010000 -Contractual Civil Engineering $6,500.00 HEA {543 -Maintenance of Res.,Dams Nuka Repair 803010000 -Contractual Nuka Diversion Repair $15,000.00 HEA |543 -Maintenance of Res.,Dams Powerhouse Tunnel Maintenand 803010000 -Contractual Power Tunnel and Diversion Tunnel Maintenance |$15,000.00 HEA }|544 -Maint of Electric Plant HEA O&M Contract 802010000 -Travel Travel $4,500.00 HEA [544 -Maint of Electric Plant HEA O&M Contract 803010000 -Contractual Misc.Service Contracts $60,000.00 HEA {544 -Maint of Electric Plant HEA O&M Contract 803010000 -Contractual Relay Maint.$10,000.00 HEA |544 -Maint of Electric Plant HEA O&M Contract 804020000 -Supplies &Materials Supplies &Materials $20,000.00 HEA {545 -Maint.Of Misc.Hydraulic Plant HEA O&M Contract 803010000 -Contractual Misc.Service Contracts Ss 3,900.00 HEA {545 -Maint.Of Misc.Hydraulic Plant HEA O&M Contract 804020000 -Supplies &Materials Consumables $35,000.00 HEA {556 -System Control &Load Dispatching HEA O&M Contract 803010000 -Contractual SCADA Maint $5,000.00 HEA [556 -System Control &Load Dispatching HEA O&M Contract 803010000 -Contractual DCS,PCs &Electronic Ops.S 48,000.00 HEA {556 -System Control &Load Dispatching HEA O&M Contract 804020000 -Supplies &Materials Supplies &Materials 5)6,000.00 HEA [571 -Maint.Of Overhead Lines HEA O&M Contract 802010000 -Travel General Maintenance/Patrol $40,000.00 HEA |571 -Maint.Of Overhead Lines HEA O&M Contract 802010000 -Travel ROW Clearing $5,000.00 HEA {571 -Maint.Of Overhead Lines HEA O&M Contract 802010000 -Travel Bradley/SOL RAS Scheme $2,000.00 HEA {571 -Maint.Of Overhead Lines HEA O&M Contract 802010000 -Travel Bradley 115 Breaker Sync $2,000.00 HEA [571 -Maint.Of Overhead Lines HEA O&M Contract 802010000 -Travel $- HEA |571 -Maint.Of Overhead Lines HEA O&M Contract 803010000 -Contractual ROW Clearing 5)50,000.00 HEA {571 -Maint.Of Overhead Lines HEA O&M Contract 803010000 -Contractual Bradley/Sol RAS Scheme $18,000.00 HEA {571 -Maint.Of Overhead Lines HEA O&M Contract 803010000 -Contractual Bradley 115 kV Breaker Sync $18,000.00 HEA {571 -Maint.Of Overhead Lines HEA O&M Contract 804020000 -Supplies &Materials General Maintenance/Patrol S 15,000.00 571 -Maint.Of Overhead Lines HEA O&M Contract 804020000 -Supplies &Materials Bradley/SOL RAS Scheme $2,000.00 HEA {571 -Maint.Of Overhead Lines HEA O&M Contract 804020000 -Supplies &Materials Bradley/115 kV Breaker Sync $2,000.00 HEA {925 -Injury &Damages HEA O&M Contract 809010000 -Administrative expense |insurance -General Liability S 11,000.00 HEA {925 -Injury &Damages HEA O&M Contract 809010000 -Administrative expense {Insurance -Aviation S 45,000.00 HEA $ $938,215.00 O&M (non payroll)$784,215.00 transmission (non payroll)$154,000.00 $938,215.00 Labor S$_1,766,090.75 O&M $938,215.00 §-2,704,305.75 HEA AP Page 4 of 11 Bradley Lake Capital Projects Draft Budget FY 2018 (DRAFT Rev 0) Account Account Description FY2016 FY2017 FY2018 Comments 335.00 Replace/Automate Fish Water Valves &Actuators 25,000 $225,000 Start in FY 2017 most of billing will be in FY2018 335.06 Fire Alarm System Replacement ($290,000 carried over in 2015)$150,000 $350,000 $350,000 Startin FY 2017 most of billing will be in FY2018 335.17 Weather Station (Airport)$15,000 $° 335.19 Surveillance Cameras (DAM)> Fishwater Screen Debris Removal,diving activities,sonar pre-332.03 inspection prior to debris removal $703,071 CompleteComplete/additional work on Unit #2 pending.Note we are monitoring 333.05 Turbine Nozzle Repair Unit 2 for any dedgradation.We may need to make a mid year budget ,$1,130,000 $-adjustment if work is required. Currently the heavy equipment is stored outside in the weather.The D 333.2?Equipment storage shed (unheated bus barn)$100,000 Hittle report noted the deleterious effects of weather on the boom truck as well as the other equipment. 333.??1 ton Flatbed with Plow $65,000 Heavier truck for snow removal and general hauling to the dam as existing trucks are often too small for the loads.Boom truck is near end of life These two bridges are decaying and if not repaired could fail.Failure would 333.2?Battle Creek Bridge Repair Refurbishment (2)$182,000 be a very expensive proposition as the bridges would need to be completely removed. Used to erect equipment building and assist in Battle creek construction 333.??Mobil Crane 40 to 50 tons (used)$100,000 Crane require for general Plant support and Boom Truck is nearing end of life. Stated for replacement in 2020 in D Hittle report.Updated amount based on NC Machnery web site.This is a critical piece of plant equipment used oa:extensivly for snow removal and material handeling the current loader is333.7?Replace Michigan Loader $350,000 nearly 30 years old.It is difficult to get parts and materials for this equipment as Michigan is now Volvo.We are seeing metal in the transmission and this indicates potential failure.We are currently changing oil often to extend the life of the loader. The Crews Quarters kitchen is in sore need of repair and refurbish.The 333.2?Upgrade Crews Quarters Kitchen $50,000 current kitchen is 30 years old and is not adequate to meet any health standards. The existing ambulance is 29 years old.It would be time to upgrade in anticipation of Battle Creek.Though called an ambulance it is a vehicle 333.??Replace 1988 Suburban Ambulance $65,000 dedicated for transport of an injured individul with first aid supplies on board,backboard,stokes litter,splints,bandages,AED,oxgyen and other first responder supplies. 333.2?=1/2 ton Pick up truck §35,000 Additional use truck for BLPP personnel 333.7?Upgrade Residence kitchens $32,000 The kitchens and bathrooms in the residences date from 1991 and are in poor to fair condition.They have seen 30 years of continuous use. 333.2? Total S$1,998,071 $375,000 $1,554,000 75.87% HEA Cap Proj S of 11 Bradley Lake Operations &Maintenance Budget Entry Page -Payroll FY 2018 Budget ruc Dept FERC * Summary comparison to prior year -CEA Payroll %change FY2016 FY2017 FY2018 FY17 to FY18 251,852.40 130,413.70 123,726.00 -5.1% Comments: 22.2'er itepe }eee eres eres eee 6=ST Rate ST Hours =OT Rate OT Hours Dbl Rate Db!Hours Total iy |Payroll CEA 1562 -Station Expenses CEA SVC/Substation Maint.Con{Substation Lineman 79.45 550.00 129.57 490.00 |$107,186.80 CEA |562 -Station Expenses CEA SVC/Substation Maint.Con{Relay Technician 77.90 140.00 140.83 40.00 |$16,539.20 CEA S : CEA $ CEA $- CEA $- CEA $ CEA $ $123,726.00 CEA Payroll Page 6 of 11 Bradley Lake Operations &Maintenance Budget Entry Page -AP &Other FY 2018 Budget Summary comparison to prior year -CEA AP &Other %change FY2016 FY2017 FY2018 FY17 to FY18 156,246.00 59,773.00 59,773.00 0.0% No change from prior year Activity tees FF".Cost Type <1 AP Detail Description a Total Cost a CEA [562 -Station Expenses CEA SVC/Substation Maint.Contract 804020000 -Supplies &Materials Relay /Substation Materials S 16,000.00 CEA |562 -Station Expenses CEA SVC/Substation Maint.Contract 802010000 -Travel Relay /Substation Travet $6,000.00 CEA {562 -Station Expenses CEA SVC/Substation Maint.Contract 803010000 -Contractual Substation Professional Services $4,000.00 CEA {562 -Station Expenses CEA SVC/Substation Maint.Contract 804030000 -Other Costs Substation Other Costs S 4,000.00 CEA 4539 -Misc.Hydraulic Power Gen EJCEA Circuits -Bernice Lake to Anch 804030000 -Other Costs Bradley Circuits -Bernice Lake to Anchorage $29,773.00 CEA CEA CEA CEA $59,773.00 Payroll $123,726.00 AP §59,773.00 Total $183,499.00 Labor and O&M $183,499.00 Capital Projects 1,400,000.00 $1,583,499.00 CEA AP Page 7 of 11 Bradley Lake Capital Projects Draft Budget FY 2018 (DRAFT Rev 0) Account Account Description FY2016 FY2017 FY2018 Comments SVC Upgrades at Daves Creek and Soldotna Substations S$2,492,423 $5,665,684 $1,400,000 Estimate Total S 2,492,423 $5,665,684 S$1,400,000 $9,558,107 ABB Contract total $7,736,000.00 ABB Contract by month $773,600.00 10%16-May $773,600.00 10%16-Jun $773,600.00 10%16-Jul $1,160,400.00 15%16-Sep S 1,160,400.00 15%17-Jan $1,160,400.00 15%17-Mar $773,600.00 10%17-May S$773,600.00 10%17-Jul $386,800.00 5%17-Aug $1,747,200.00 fy 2016 cost $2,002,800.00 fy 2017 cost through 1-1-2017 $3,094,400.00 fy 2017 estimate ABB cost through 6-30-17 $500,000.00 fy 2017 estimate labor,OH &Misc cost through 6-30-17 $5,597,200.00 fy 2017 estimated total $1,160,400.00 fy 2018 estimate ABB cost through 6-30-18 $200,000.00 fy 2018 estimate labor,OH &Misc cost through 6-30-18 $1,360,400.00 fy 2018 estimated total CEA Cap Proj Page 8 of 11 Bradley Lake Operations &Maintenance Budget Entry Page-PayrollFY2018Budget Dept FERC a a Eo eh CoaSOE,TOY Activity ';eats 3JobTitle"2 ora eres cores perreee corse ceilOTHours%Dbi Rate ©Obi Hours Total Cost AEA Payroll AEA $- AEA $r AEA $ AEA .$: AEA None in FY2018 $: AEA S AEA $ AEA $- AEA $ AEA $- AEA S - $- HEA $1,766,090.75 CEA $123,726.00 AEA S$- Total Payroll $1,889,816.75 HEA 938,215.00 CEA 59,773.00 AEA 1,705,585.00 Total AP 2,703,573.00 HEA 2,704,305.75 CEA 183,499.00 AEA 1,705,585.00 Total AP &Payroll 4,593,389.75 Page 9 of 11 Bradley Lake Operations &Maintenance Budget Entry Page -AP &Other FY 2018 Budget Summary comparison to prior year -AEA AP &Other %change FY2016 ”FY2017 FY2018 FY17 to FY18 1,808,280.00 1,754,770.00 1,705,585.00 -2.8% Decrease due to reduction in USGS streamgauging FERC rte ree wer,Prem tes 9)Activity ma ee oe ee ee Cost Type Sek Moe SF eee ee wo AP Detail Description =Total Cost = AEA [540 -Rents Bradley Lake FERC land use Fees 804030000 -Other Costs Bradley Lake FERC land use fees S 318,000.00 AEA {556 -System Control &Load Dispatch{SCS Snow Measurement 803010000 -Contractual SCS Snow Measurement $10,000.00 AEA {556 -System Control &Load Dispatch UA Seismic monitoring/reporting 803010000 -Contractual UAF Seismic monitoring and reporting $62,000.00 AEA [556 -System Control!&Load Dispatch{USGS Stream gauging 803010000 -Contractual USGS Streamgauging S 213,137.00 AEA {556 -System Control &Load DispatclyState of Alaska Permits 804030000 -Other Costs State of Alaska Permits S 350.00 AEA [920 -Administrative Expense AEA Admin Fee 809010000 -Administrative expense AEA Bradley Fixed Admin Fees $200,000.00 AEA [920 -Administrative Expense Bradley Lake Audit fees 809010000 -Administrative expense Audit fee 5 16,800.00 AEA 1920 -Administrative Expense Bradley Lake PMC Legal 809010000 -Administrative expense Legal fees S 25,000.00 AEA |920-Administrative Expense Bradley Lake Arbitrage Report 809010000 -Administrative expense Arbitrage fee $3,380.00 AEA {920 -Administrative Expense Bradley Lake Trustee fees 809010000 -Administrative expense Trust &Account fees S$11,918.00 AEA [920 -Administrative Expense Miscellaneous Admin 809010000 -Administrative expense NHA membership $10,000.00 AEA {924 -Property Insurance Project Insurance Premiums 809010000 -Administrative expense Insurance Premiums $525,000.00 AEA {928 -Regulatory Commission ExpensqFERC administrative fees 809010000 -Administrative expense FERC administrative fees $185,000.00 AEA 1928 -Regulatory Commission ExpensdFERC administrative fees 809010000 -Administrative expense Contractual Engineer -FERC license issues $125,000.00 AEA AEA $-1,705,585.00 Labor and O&M $-_1,705,585.00 Capital Projects 350,000.00 S$_2,055,585.00 AEA AP Page 10 of 11 Bradley Lake Capital!Projects Draft Budget FY 2018 ,(DRAFT Rev 0) Account Account Description FY2016 FY2017 FY2018 Comments Start license amend process w Initial Consultation Document and environmental/engineering studies.Benefits 2500 MW additional annual plus hold an additional 27,500 ac-ft/MWh that dam can hold and shift into winter.Spillway raise Total cost (license,engineering,environmental,& construction estimated $3.3M to $4.5M.Depending on energy value & frequency of wet years value may be greater than $500,000/yr. $-$°-§350,000 Spillway Raise license mod,engineering,&environ studies. |Total $-5 -$350,000 $350,000 AEA Cap Proj Page 11 of 11 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT 2018 DRAFT BUDGET Date :02/17/17 A ay,PEt ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT 2018 Budget Contents Schedule Description Page # Overview of Budget Changes between FY17 Amended Budget and FY18 Draft Budget 3 Schedule A Budget Summary 4 Schedule A-1 Capital Purchases not funded by R&C 5 Schedule B Operations &Maintenance Budget 6-12 Schedule C Monthly Utility Contributions 13 Schedule D R&C Fund Disbursements and Repayments ;14 2/16/201710:02 AMH:\Accounting\AEA FY 18 FS Shared Files\Bradley Lake\Budget\2018 BradleyBudget-DRAF T-021717-accelerated payments.xisx 2 of 14 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Overview of Budget Changes between FY17 Amended Budget and FY18 Draft Budget FY17 Amended Budgeted Utility Contributions 19,543,371 From Schedule A REVENUES Increase in projected Interest Earnings (90,000) (90,000) EXPENSES Decrease in O&M Operations (560,723) Decrease in R&C Fund Repayments ;(469,476) Increase in Non R&C Capital Projects 954,000 Decrease in Operating Reserve Fund Requirement (26,614) Increase in Debt Service 351,900 Increase in projected Arbitrage Transfer 13,904 262,991 Net change in utility contributions 172,991 FY18 Draft Budgeted Utility Contributions 19,716,362 2/16/2017 10:02 AM2018 BradleyBudget-DRAFT-021717-accelerated payments.xlsxOverview Page 3 of 14 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Budget Summary Schedule A FY2015 FY2016 FY2017.FY2018 "INC(DEC)FRM ACTUALS ACTUALS AMENDED DRAFT PY AMENDED REVENUES,EXPENSES &CHANGES IN SURPLUS BUDGET BUDGET BUDGET REVENUES : UTILITY CONTRIBUTIONS 16,680,264 17,828,513 19,543,371 19,716,362 172,991 UTILITY CONTRIBUTIONS-Battle Creek .0 0 800,000 0.(800,000) INTEREST INCOME 1,856,550 1,930,547 1,755,000 1,845,000 90,000 18,536,814 19,759,060 22,098,371 21,561,362 (537,009) EXPENSES OPERATIONS 3,977,749 4,273,634 5,154,110 4,593,387 (560,723) RENEWALS/REPLACEMENTS (R&C FUND REPAYMENTS)1,370,494 2,692,710 3,262,783 2,793,307 (469,476) NON R&C FUND CAPITAL PURCHASES-SEE A1 254,039 26,444 250,000 1,204,000 954,000 NON R&C FUND CAPITAL PURCHASES-Battle Creek 0 0 800,000 0.(800,000) TRANSFER TO (FROM)OPERATING RESERVE 160,366 (9,747)(85,531)(412,145)(26,614) DEBT SERVICE (net of Capital Reserve Reductions)12,475,850 12,494,600 12,426,200 12,778,100 351,900 ARBITRAGE TRANSFER 298,316 281,419 290,809 304,713 13,904 18,536,814 19,759,060 22,098,371 21,561,362 |(537,009) CURRENT YEAR SURPLUS (DEFICIT)0 0 0 0 BEGINNING SURPLUS (DEFICIT)0 0 0 0 ENDING SURPLUS (DEFICIT)0 0 0 0 |aren Semaine.een ;pa R a wd ...-Z BALANCE SHEET ASSETS REVENUE FUND 431,911 385,309 0 0 OPERATING FUND 1,852,035 1,403,738 0 0 RECEIVABLE FROM R&C 20,212 1,055,961 0 0 OTHER RECEIVABLES 520,416 0 0 0 PREPAID EXPENSES 52,258 85,194 0 0 2,876,832 2,930,202 0 0 LIABILITIES &SURPLUS LIABILITIES 1,462,367 809,828 0 0 PAYABLE TO UTILITIES O&M 1,394,253 1,064,413 0 0 PAYABLE TO UTILITIES R&C 20,212 1,055,961 0 0 2,876,832 2,930,202 0 0 b.pegerquctquneerpny wns -”..d OTHER INFORMATION OPERATING RESERVE *1,084,100 1,116,353 1,030,822 918,677 MONTHLY CONTRIBUTIONS 1,507,894 1,654,119 1,628,614 1,643,030 *Required to be 20%of budgeted operating expense 2/16/2017 10:02 AM2018 BradleyBudget-DRAFT-021717-accelerated payments.xisxSch A Page 4 of 14 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Capital Purchases Not Funded by R&C Fund Schedule A-1 FY15 FY16 FY17 FY18 PROJECTED DRAFT _[Capital Project Description ACTUALS|ACTUALS ACTUALS BUDGET |Comments :[Replace Fish Water Valve Actuators -26,444 -- DCS Security Interface for Data Access 141,703 --- Lube Oil Purification System 47,723 --- Replace 1998 Chevrolet Crew Cab Vehicle 32,306 --- Replace 1990 Ford Single Cab Vehicle 32,306 J”:>- Replace/Automate Fish Water Valves &Actuators <;25,000 225,000 ($250,000 total $96 000 FY an1922 S000 FY 18Currentlytheheavyequipmentisstoredoutsideinthe Equipment storage shed (unheated bus barn)-..100,000 ia Een trck os wells te other equipment. Heavier truck for snow removal and general hauling to 1 ton Flatbed with Plow .:°.65,000 ithe dam as existing trucks are often too small for the loads.Boom truck is near end of life These two bridges are decaying and if not repaired Battle Creek Bridge Repair Refurbishment (2).°"482,000 seopositon as the tdges would reed to be completely removed. Used to erect equipment building and assist in Battle Mobil Crane 40 to 50 tons (used)°°°100.000 Jcreek construction Crane require for general Plant support and Boom Truck is nearing end of life. Stated for replacement in 2020 in D Hittle report. Updated amount based on NC Machnery web site. This is a critical piece of plant equipment used extensivly for snow removal and material handeling the Replace Michigan Loader °5 °350,000 Jcurrent loader is nearly 30 years old.It is difficult to get parts and materials for this equipment as Michigan is Inow Volvo.We are seeing metal in the transmission and this indicates potential failure.We are currently changing oil often to extend the life of the loader. The Crews Quarters kitchen is in sore need of repair Upgrade Crews Quarters Kitchen .°-50,000 Jand refurbish.The current kitchen is 30 years old and is not adequate to meet any health standards. The existing ambulance is 29 years old.It would be time to upgrade in anticipation of Battle Creek.Though called an ambulance it is a vehicle dedicated forReplace1988SuburbanAmbulance-©a 65.000 ane eran .,.transport of an injured individul with first aid supplies on board,backboard,stokes litter,splints,bandages,AED, loxgyen and other first responder supplies. 1/2 ton Pick up truck ---35,000 {Additional use truck for BLPP personnel The kitchens and bathrooms in the residences date Upgrade Residence kitchens >°S 32,000 [from 1991 and are in poor to fair condition.They have seen 30 years of continuous use. Total Non R&C Capital Purchases paid for by all utilities 254,039 26,444 25,000 1.204.000 [Battle Creek Diversion I -|-|800,000 J -|| Total Non R&C Capital Purchases paid for by HEA,CEA,GVEA,MEA,Seward --800,000 - Total Non R&C Capital Purchases 254,039 26,444 825,000 1,204,000 2/16/201710:02 AM2018 BradleyBudget-DRAFT-021717-accelerated payments.xlsxSch A-1 Page 5 of 14 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Operations &Maintenance Budget Summary Budget by Participant Schedule B HEA 3,052,652 HEA 3,365,387 HEA 3,209,154 HEA 2,704,303 CEA 553,000 CEA 408,098 CEA 190,187 CEA 183,499 AEA 1,814,850 AEA 1,808,280 AEA 1,754,770 AEA 4,705,585 FY15 FY16 FYv17 FY18 FY15 FY16 FY17 FY18 Increase Amended (Over)Under Amended (Over)Under Amended Actual @ (Over)Under Approved (Decrease) Budget Actual Budget to date Budget Actual Budget to date Budget 12/31/16 |Budget to date Budget from PY Summary by cost type Labor &Benefits 41,986,848 1,713,440 273,408 2,143,223 1,738,336 404,887 2,005,079 744,386 1,260,693 1,889,814 (115,265) Travel!35,410 15,528 19,882 98,600 13,796 84,804 132,950 10,255 122,695 76,950 (56,000) Training 38,731 26,569 12,162 38,731 10,819 27,912 49,300 1,619 47,681 49,300 - Contractual 871,280 618,735 252,545 1,205,659 813,606 392,053 1,217,418 375,639 841,779 841,062 (376,356) Supplies &Materials 435,919 224,296 211,623 275,760 95,952 179,808 229,358 29,114 200,244 183,345 (46,013) Other Costs 593,797 225,712 368,085 451,846 375,357 76,489 381,744 111,062 270,682 387,818 6,074 Equipment &Machinery 30,130 23,714 6,419 33,130 6,051 27,079 11,500 850 10,650 7,000 (4,500) Maintenance Projects 60,000 27,414 32,586 13,000 3,457 9,543 .---- Administrative Costs 1,368,387 1,102,344 266,043 1,321,817 1,216,260 105,557 1,126,761 511,053 615,708 4,158,098 31,337 5,420,502 3,977,749 1,442,753 5,581,766 4,273,634 1,308,131 5,154,110 1,783,977 3,370,134 4,593,387 (560,723) FERC 535 -Operation Supervision &Engineering Operations Sup/Eng Bradley Lake Operating Labor &Benefits 291,632 282,780 8,852 304,235 321,664 (17,429)299.649 130,170 169,479 265,587 (34,062) Travel 8,610 12,894 (4,284)9,500 9,284 219 10,450 8,496 1,954 10,450 - Training 7,904 4,116 3,788 7,904 2,080 §,824 9,300 -9,300 9,300 - Contractual 1,445 -1,445 1,445 -1,445 1,400 -1,400 1,000 (400) Supplies &Materials 6,203 344 §,859 6,203 346 5,857 4,100 :4,100 4,000 (100) Bradley Lake Operating Total 315,794 300,134 15,660 329,287 333,371 (4,084)324,899 138,666 186,233 290,337 (34,562) FERC 535 -Operation Supervision &Engineering Total 315,794 300,134 15,660 329,287 333,371 (4,084)324,899 138,666 186,233 290,337 JHEA (34,562) FERC 537 -Hydraulic Expenses Hydraulic Expenses Bradley Lake Operating Labor &Benefits 95,056 76,200 18,856 *95,273 81,677 13,596 92,746 33,446 59,300 94,453 1,707 Contractual 19,504 8,000 11,504 17,180 -17,180 4,000 §,647 (1,647)2,000 (2,000) Supplies &Materials 2,608 -2,608 2,608 1,277 1,331 2,300 179 2,721 2,000 (900) Bradley Lake Operating Total 117,168 84,200 32,968 115,061 82,954 32,107 99,646 39,272 60,374 98,453 (1,193) FERC 537 -Hydraulic Expenses Total 117,168 84,200 32,968 115,061 82,954 32,107 99,646 39,272 60,374 98,453 THEA (1,193) 2/16/201710:02 AM2018 BradleyBudget-DRAFT-021717-accelerated payments.xisxSch B Page 6of 14 FY1S FY16 FY17 FY18 FY15 FY16 FY17 FY18 Increase Amended (Over)Under Amended (Over)Under Amended Actual @ (Over)Under Approved (Decrease) Budget Actual Budget to date Budget Actual Budget to date Budget 12/31/16 |Budget to date Budget from PY [FERC 538 -Electric Expenses Electric Expenses Bradley Lake Operating Labor &Benefits 224,000 234,351 (10,351)257,107 215,440 41,667 242,940 98,375 144,564 232,294 (10,646) Travel :-:-::7,000 1,759 5,241 7,000 - Training 30,827 18,383 12,444 30,827 8,739 22,088 25,000 1,619 23,381 25,000 - Contractual 21,342 14,055 7,287 3,342 1,400 1,942 2,000 1,400 600 2,000 - Supplies &Materials 6,232 2,184 4,048 12,232 6,241 5,991 8,500 4,214 4,286 9,732 1,232 Bradley Lake Operating Tota!282,401 268,973 13,428 -303,508 231,820 71,688 285,440 107,367 178,072 276,026 (9,414) FERC 538 -Electric Expenses Total 282,401 268,973 13,428 303,508 231,820 71,688 285,440 107,367 178,072 276,026 JHEA (9,414) FERC 539 -Misc.Hydraulic Power Generation Expenses Mise Hydro Power Exp Bradley Lake Operating Labor &Benefits 192,000 114,373 77,627 189,473 158,532 30,941 178,991 73,876 105,116 179,530 §39 Training -4,070 (4,070):--15,000 -15,000 15,000 - Contractual 239,574 142,752 96,819 315,249 285,812 29,437 297,048 95,836 201,212 287,525 (9,523) Supplies &Materials 94,878 18,473 76,405 22,000 19,041 2,959 17,900 7,258 10,642 17,900 - Bradley Lake Operating Total §26,449 279,668 246,781 §26,722 463,385 63,337 508,939 176,970 331,969 499,955 FHEA (8,984) BRADLEY CIRCUITS/RADIO TO BERNICE LK Other Costs 30,000 28,740 1,260 30,000 31,059 (1,059)35,695 17,848 17,847 35,695 - BRADLEY CIRCUITS/RADIO TO BERNICE LK Total 30,000 28,740 1,260 30,000 31,059 (1,059)35,695 17,848 17,847 35,695 {HEA - BRADLEY CIRCUITS BERNICE LK TO ANCH Other Costs 30,000 31,485 (1,485)28,746 29,864 (1,118)29,773 14,770 15,003 29,773 - BRADLEY CIRCUITS BERNICE LK TO ANCH Total 30,000 31,485 (1,485)28,746 29,864 (1,118)29,773 14,770 15,003 29,773 [CEA - FERC 539 -Misc.Hydraulic Power Generation Expenses Total 586,449 339,893 246,556 585,468 524,308 61,160 574,407 209,588 364,820 565,423 (8,984) FERC 540 -Rents FERC Land Use Fee Bradley Lake Operating Other Costs 480,000 137,230 42,770 183,000 279,876 (96,876)312,176 78,044 234,132 318,000 5,824 Bradley Lake Operating Total 180,000 137,230 42,770 183,000 279,876 (96,876)312,176 78,044 234,132 318,000 5,824 FERC S40 -Rents Total 180,000 137,230 42,770 183,000 279,876 (96,876)312,176 78,044 234,132 318,000 IAEA 5,824 2/16/2017 10:02 AM2018 BradieyBudget-DRAFT-021717-accelerated payments.xIsxSch B Page 7 of 14 FY15 FY16 FY17 FY18 FY1S FY16 FY17 FY18 Increase Amended {Over)Under Amended (Over)Under Amended Actual @ (Over)Under Approved (Decrease) Budget Actual Budget to date Budget Actual Budget to date Budget 12/31/16 |Budget to date Budget from PY FERC 541 -Maintenance Supervision &Engineering Maint Supervision/Eng Bradley Lake Operating Labor &Benefits 214,230 197,018 17,212 222,118 239,299 (17,181)224,284 94,624 129,660 272,586 48,302 Bradley Lake Operating Total 214,230 197,018 17,212 222,118 239,299 (17,181)224,284 94,624 129,660 272,586 48,302 FERC 541 -Maintenance Supervision &Engineering Total 214,230 197,018 17,212 222,118 239,299 (17,181)224,284 94,624 129,660 272,586 THEA 48,302 FERC 542 -Maintenance of Structures Maintenance of Structures Bradley Lake Operating Labor &Benefits 96,200 75,264 20,936 95,273 89,890 5,383 92,746 33,368 59,378 94,453 1,707 Contractual ::-:::10,000 -10,000 10,000 - Supplies &Materials 64,273 10,009 54,264 61,273 23,398 37,875 §3,713 398 §3,315 §3,713 - Equipment &Machinery 8,500 10,769 (2,269)11,500 6,051 5,449 11,500 850 10,650 7,000 (4,500) Maintenance Projects 6,000 -6,000 4,000 1,827 2,173 ----- Bradley Lake Operating Total 174,973 96,042 78,931 172,046 121,166 50,880 167,959 34,616 133,343 165,166 (2,793) [FERC 542 -Maintenance of Structures Total 174,973 96,042 78,931 172,046 121,166 50,880 167,959 34,616 133,343 165,166 JHEA (2,793) FERC 543 -Maintenance of Reservoirs,Dams &Waterways Maint Res,Dams,WWays Bradley Lake Operating Labor &Benefits 49,950 42,309 7,641 51,276 42,848 8,428 50,409 49,440 969 50,610 201 Contractual 28,769 630 28,139 5,200 9,080 (3,880)5,200 63,704 (58,504)6,500 1,300 Bradley Lake Operating Total 78,719 42,939 35,780 56.476 51,928 4,548 55,609 113,144 (57,535)57,110 1,501 BRADLEY NUKA REPAIR Contractual ::->>-15,000 409 14,591 15,000 . Supplies &Materials -787 (787)-------- Equipment &Machinery 21,630 12,942 8,688 21,630 -21,630 ----- BRADLEY NUKA REPAIR Total 21,630 13,729 7,901 21,630 -21,630 15,000 409 14,591 15,000 - BRADLEY POWER TUNNEL MAINT (Dam) Contractual 56,000 43,131 12,869 20,000 3,673 16,327 15,000 311 14,689 15,000 - BRADLEY POWER TUNNEL MAINT (Dam)Total 56,000 43,131 12,869 20,000 3,673 16,327 15,000 311 14,689 45,000 - BRADLEY POWER TUNNEL DRAIN CLN/INSP (P/House) Maintenance Projects 9,000 -9,000 9,000 1,557 ------ BRADLEY POWER TUNNEL DRAIN CLN/INSP (P/House)Total 9,000 -9,000 9,000 1,557 ------ FERC 543 -Maintenance of Reservoirs,Dams &Waterways Total 165,349 99,799 65,550 107,106 57,158 49,948 85,609 113,864 (28,255)87,110 JHEA 1,501 2/16/201710:02 AM2018 BradleyBudget-DRAFT-021717-accelerated payments.xisxSch B Page 8 of 14 FY1S FY16 FY17 FY18 FY1S FY16 FY17 FY18 Increase Amended (Over)Under Amended (Over)Under Amended Actual @ (Over)Under Approved (Decrease) Budget Actual Budget to date Budget Actual Budget to date Budget 12/31/16 |Budget to date Budget from PY FERC 544 -Maintenance of Electric Plant Maintenance of Elec Plant Bradley Lake Operating Labor &Benefits 379,600 323,757 55,843 381,093 336,417 44,676 370,983 134,127 236,856 379,102 8,119 Travel 2,800 158 2,642 3,500 3,270 230 4,500 -4,500 4,500 - Contractual 61,849 33,765 28,084 91,443 69,651 21,792 79,000 10,607 68,393 70,000 (9,000) Supplies &Materials 27,245 20,650 6,595 27,245 10,142 17,103 27,245 5,867 21,378 20,000 (7,245) Maintenance Projects 25,000 25,000 ->------- Bradley Lake Operating Total 496 494 403,330 93,164 503,281 419,480 83,801 481,728 150,601 331,127 473,602 (8,126) FERC 544 -Maintenance of Electric Plant Total 496,494 403,330 93,164 -503,281 419,480 83,801 481,728 150,601 331,127 473,602 JHEA (8,126) FERC 545 -Maintenance of Misc.Hydraulic Plant Maint of Misc Hydr Plant Bradley Lake Operating Labor &Benefits 95,680 78,186 17,494 95,273 94,653 620 92,746 33,825 §8,921 94,453 1,707 Contractual 3,900 170 3,730 3,900 -3,900 3,900 >3,900 3,900 - Supplies &Materials 71,281 40,220 31,061 43,000 28,044 14,956 43,000 6,626 36,374 35,000 (8,000) Bradley Lake Operating Total 170,861 118,576 §2,285 142,173 122,697 19,476 139,646 40,451 99,195 433,353 (6,293) BRADLEY FISH WATER DSGN/MIDDLE FORK SHACK IMPR Contractual 30,900 -30,900 24,900 -24,900 20,000 -20,000 -(20,000) BRADLEY FISH WATER DSGN/MIDDLE FORK SHACK IMPR Total 30,900 -30,900 24,900 -24,900 20,000 -20,000 -(20,000)! FERC 545 -Maintenance of Misc.Hydraulic Plant Total 201,761 118,576 83,185 167,073 122,697 44,376 159,646 40,451 119,195 133,353 THEA (26,293) FERC 556 -System Control &Load Dispatching System Cnt!&Load Disp Bradley Lake Operating Labor &Benefits 48,000 19,514 28,486 49,000 40,478 38,522 49,502 17,812 31,689 20,618 (28,884) Contractual §,000 -§,000 8,500 31 8,469 60,500 2,364 58,136 53,000 (7,800) Supplies &Materials 6,199 2,297 3,902 6,199 4,090 2,109 6,000 1,850 4,150 6,000 - Bradley Lake Operating Total 59,199 21,611 37,388 63,699 14,599 49,100 116,002 22,026 93,976 79,618 [HEA (36,384) BRADLEY POWERHOUSE PC'S Contractual 30,500 3,201 27,299 50,000 37,261 12,739 ----- BRADLEY POWERHOUSE PC'S Total 30,500 3,201 27,299 50,000 37,261 12,739 ----HEA - BRADLEY DISPATCH REGULATIONS Maintenance Projects 20,000 -20,000 -------- BRADLEY DISPATCH REGULATIONS Total 20,000 -20,000 -------HEA - 2/16/201710:02 AM2018 BradieyBudget-DRAFT-021717-accelerated payments.xisxSch B Page9of 14 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Increase Amended (Over)Under Amended (Over)Under Amended Actual @ (Over)Under Approved (Decrease) Budget Actual Budget to date Budget Actual Budget to date Budget 12/31/16 |Budget to date Budget from PY Snow Measurement Bradiey Lake Operating Contractual 11,000 10,000 1,000 10,000 10,000 -10,000 §,000 5,000 10,000 JAEA - Bradley Lake Operating Total 11,000 10,000 1,000 10,000 10,000 -10,000 5,000 §,000 10,000 - Seismic Service Bradley Lake Operating Contractual 60,000 64,477 (4,477)62,000 60,370 1,630 60,370 35,255 25,115 62,000 [AEA 1,630 Bradley Lake Operating Tota!60,000 64,477 (4,477)62,000 60,370 1,630 60,370 35,255 25,115 62,000 1,630 Streamguaging Serv Bradley Lake Operating Contractual 295,000 296,409 (1,409)296,000 301,338 (5,338)310,000 78,582 231,418 213,137 [AEA (96,863) Bradiey Lake Operating Total 295,000 296,409 (1,409)"296,000 301,338 (5,338)310,000 78,582 231,418 213,137 (96,863) Permits Bradley Lake Operating Other Costs 100 350 (250)100 350 (250)100 100 -350 [AEA 250 Bradley Lake Operating Total 100 350 (250)100 350 (250)100 100 -350 250 FERC 556 -System Control!&Load Dispatching Total 475,799 396,248 79,551 481,799 423,918 57,881 496,472 140,963 355,509 365,105 (131,367) FERC 562 -Station Expenses Station Expenses CEA SVC/Substation Maintenance Contract Labor &Benefits 300,500 269,688 30,812 251,852 147,344 104,508 130,414 45,324 85,090 123,726 (6,688) Travel 24,000 2,476 21,524 26,000 (31)26,031 6,000 -6,000 6,000 - Contractual 6,500 2,145 4,355 6,500 1,244 §,256 4,000 3,447 554 4,000 - Supplies &Materials 157,000 129,332 27,668 95,000 2,118 92,882 16,000 2,722 13,278 16,000 - Other Costs -1,085 (1,085)-9,208 (9,208)4,000 300 3,700 4,000 - Maintenance Projects -2,414 (2,414)-73 (73)----- CEA SVC/Substation Maintenance Contract Total 488,000 407,140 80,860 379,352 169,956 219,396 160,414 §1,792 108,621 153,726 (6,688) FERC 562 -Station Expenses Total 488,000 407,140 80,860 379,352 159,956 219,396 160,414 51,792 108,621 153,726 JCEA (6,688) 2/16/201710:02 AM2018 BradleyBudget-DRAFT-021717-accelerated payments.xisxSch B Page10of14 FY15 FY16 FY17 Fv18 FY15 FY16 FY17 FY18 Increase Amended (Over)Under Amended (Over)Under Amended Actual @ (Over)Under Approved (Decrease) Budget Actual Budget to date Budget Actual Budget to date Budget 12/31/16 |Budget to date Budget from PY FERC 571 -Maintenance of Overhead Lines Maint of OH Lines Bradley Lake Operating Labor &Benefits ---146,320 94 146,226 179,671 -179,671 82,402 (97,269) Travel ---54,600 1,276 53,324 95,000 -95,000 49,000 (46,000) Contractual ---90,000 33,746 56,254 50,000 -50,000 86,000 36,000 Supplies &Materials ----1,255 (1,255)50,000 -50,000 19,000 (31,000) Other Costs 353,697 26,822 326,875 ----.--- Bradley Lake Operating Total 353,697 26,822 326,875 290,920 36,371 254,549 374,671 -374,671 236,402 (138,269) BRADLEY JUNCTION SWITCH REMOVAL Travel ba ---:bd §,000 -5,000 -(5,000) Contractual :-----70,000 73,076 (3,076):(70,000) Other Costs :-:-210,000 25,000 185,000 ----- BRADLEY JUNCTION SWITCH REMOVAL Total ---210,000 25,000 185,000 75,000 73,076 1,924 -(75,000) MARKER BALL REPLACEMENT Labor &Benefits >-:4,929 -4,929 -.--- Travel -:-5,000 -5,000 5,000 -5,000 -(5,000). Contractual --:200,000 -200,000 200,000 -200,000 .-(200,000) MARKER BALL REPLACEMENT Total ---209,929 -209,929 205,000 -205,000 -(205,000) FERC 571 -Maintenance of Overhead Lines Total 353,697 26,822 326,875 710,849 61,371 649,478 654,671 73,076 581,595 236,402 [HEA (418,269) FERC 920 &930 -Administrative Expense AEA Bradley Fixed Admin Fees Bradley Lake Operating Administrative Costs 200,000 200,000 -200,000 200,000 :200,000 100,000 100,000 200,000 JAEA - Bradley Lake Operating Total 200,000 200,000 -200,000 200,000 -200,000 100,000 100,000 200,000 - Operating Committee Exp-Audit Bradley Lake Operating Administrative Costs 116,250 15,500 100,750 116,250 101,530 14,720 16,494 16,500 (6)16,800 JAEA 306 Bradley Lake Operating Total 116,250 15,500 100,750 116,250 101,530 14,720 16,494 16,500 (6)16,800 306 Operating Committee Exp-tegal Bradley Lake Operating Administrative Costs 25,000 22,110 2,890 25,000 77,719 (52,719)25,000 16,524 8,476 25,000 JAEA - Bradley Lake Operating Total 25,000 22,110 2,890 25,000 77,719 (52,719)25,000 16,524 8,476 25,000 - 2/16/201710:02 AM2018 BradleyBudget-DRAFT-021717-accelerated payments.xlsxSch B Page 11 of 14 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Increase Amended (Over)Under Amended (Over)Under Amended Actual @ (Over)Under Approved (Decrease) Budget Actual Budget to date Budget Actual Budget to date Budget 12/31/16 |Budget to date Budget from PY Operat Committee Exp-Arbitrage Bradley Lake Operating Administrative Costs 5,200 3,630 1,570 3,630 7,010 (3,380)3,630 -3,630 3,380 [AEA (250) Bradley Lake Operating Total 5,200 3,630 1,570 3.630 7,010 (3,380)3,630 -3,630 3,380 (250) Trust &Account Fees Bradley Lake Operating Administrative Costs 12,300 11,918 382 42,300 11,918 382 12,000 5,959 6,041 11,918 JAEA (82) Bradley Lake Operating Tota!12,300 11,918 382 12,300 11,918 382 12,000 5,959 6,044 11,918 (82) Misc Admin Bradley Lake Operating Administrative Costs ----8,375 (8,375)---10,000 JAEA 10,000 Bradley Lake Operating Total ----8,375 (8,375)--:710,000 10,000 FERC 920 &930 -Administrative Expense Total 358,750 253,158 105,592 -357,180 406,552 (49,372)257,124 138,983 118,141 267,098 9,974 FERC 924 &925 -Insurance Premiums Insurance Premiums Bradley Lake Operating Administrative Costs 510,000 510,799 (799)510,000 477,981 32,019 500,000 250,747 249,253 525,000 [AEA 25,000 Administrative Costs 64,637 §2,121 12,516 64,637 52,541 12,096 64,637 26,104 38,533 56,000 JHEA (8,637) Bradley Lake Operating Total 574,637 562,920 11,717 574,637 §30,522 44,115 564 637 276,852 287,785 581,000 16,363 Risk Management Bradley Lake Operating Administrative Costs 35,000 30,000 §,000 -------CEA - Bradley Lake Operating Total 35,000 30,000 5,000 -------- FERC 924 &925 -Insurance Premiums Total 609,637 592,920 16,717 574,637 530,522 44,115 564,637 276,852 287,785 581,000 16,363 FERC 928 -Regulatory Commission Expenses FERC Admin Fees Administrative Costs 250,000 150,519 99,481 210,000 182,885 27,115 180,000 .180,000 185,000 [AEA §,000 Bradley Lake Operating Total 250,000 150,519 99,481 210,000 182,885 27,115 180,000 .180,000 185,000 5,000 FERC Related Prof Services FERC Part 12 Inspection Administrative Costs ---55,000 35,663 19,337 25,000 1,362 23,638 -__|AEA (25,000) Contractual Engineer-FERC license issues Administrative Costs 150,000 105,747 44,253 125,000 60,638 64,362 100,000 93,856 6,144 125,000 [AEA 25,000 Bradley take Operating Total 150,000 105,747 44,253 180,000 96,301 83,699 125,000 95,218 29,782 125,000 : |FERC 928 -Regulatory Commission Expenses Total 400,000 256,266 143,734 390,000 279,186 110,814 305,000 95,218 209,782 310,000 5,000 Total Bradley Lake Budget 5,420,502 3,977,749 1,442,753 5,581,766 4,273,634 1,308,131 5,154,110 1,783,977 3,370,134 4,593,387 (560,723) 2/16/201710:02 AM2018 BradleyBudget-DRAFT-021717-accelerated payments.xisxSch B Page 12 of 14 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Monthly Utility Contributions Schedule C FY2015 FY2016 FY2017 FY2018 FY2017 to PERCENT Amended Amended Amended Draft FY2018 POWER PURCHASER SHARE BUDGET BUDGET BUDGET BUDGET Change CHUGACH ELECTRIC 30.4%5,500,800 6,034,236 5,941,176 5,993,766 52,590 MUNICIPALITY OF ANCHORAGE 25.9%4,686,540 5,141,004 5,061,732 5,106,546 44,814 HOMER ELECTRIC 12.0%2,171,364 2,381,928 2,345,208 2,365,968 20,760 MATANUSKA ELECTRIC 13.8%2,497,068 2,739,216 2,696,988 2,720,856 23,868 GOLDEN VALLEY ELECTRIC 16.9%3,058,008 3,354,552 3,302,832 3,332,064 29,232 CITY OF SEWARD 1.0%180,948 198,492 195,432 197,160 1,728 Rounding (5)3 2 (1) 100.0%18,094,728 19,849,423 19,543,371 19,716,362 172,991 'FY2018 PERCENT FY2015 FY2016 FY2017 July1 through FY2018 POWER PURCHASER SHARE MONTHLY MONTHLY MONTHLY December 1 ONLY Change CHUGACH ELECTRIC 30.4%458,400 502,853 495,098 998,961 503,863 MUNICIPALITY OF ANCHORAGE 25.9%390,545 428,417 421,811 851,091 429,280 HOMER ELECTRIC 12.0%180,947 198,494 195,434 394,328 198,894 MATANUSKA ELECTRIC 13.8%208,089 228,268 224,749 453,476 228,727 GOLDEN VALLEY ELECTRIC 16.9%254,834 279,546 275,236 555,344 280,108 CITY OF SEWARD 1.0%15,079 16,541 16,286 32,860 16,574 100.0%1,507,894 1,654,119 1,628,614 3,286,060 1,657,446 *In FY18 contributions will be paid evenly over the first six months,beginning July 1,2017 and ending December 1,2017. No payments will be due from January 1,2018 through June 30,2018. (These accelerated payments are due to the cash flow needs of the R&C fund to pay for the SVC replacement project with total estimated cost of $8.7 million) 2/16/201710:02 AM2018 BradleyBudget-DRAFT-021717-accelerated payments.xlsxSch C Page 13 of 14 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT R&C Fund Disbursements and Repayments Schedule D Ketual "Actual 'Actual 'Actual PROJECTED PROJEGTED |PROJECTED PROJECTED |&Actust@ TO REPAY TO REPAY 12/31/16 *TO REPAY TOREPAY Description Disburse at 06/90/16 Disburse at 06/30/16 Disburse at 06/30/17 Disburse ot 08/30/18[R&C FUND PROJECTS Governor 627,738.60 4,052,070.14 0.00 4,052,070.14 0.00 4,052,070.14 000 4,052,070 14 Repiece RFLS 0.00 251,092.69 0.00 251,082.69 0.00 251,092.69 900 251,092 69 Replace Runners 0.00 1,946.732.79 0.00 1,846 ,732.79 0.00 1,946 ,732.79 000 1,946,732 79 Replace cable from dam to power house 0.00 2.321,922.94 0.00 2.321,922.94 0.00 2.321,922.94 000 2,321,922 94iReplacepowersystemstabizer0.00 619,205.10 0.00 619,205.10 0.00 619,205.10 900 619,205 10ReplacetwoRTUs0.00 06,905.27 000 86,905.27 0.00 86,905.27 000 86,90527CulvertRepairs0.00 675,966.78 0.00 675,966.79 0.00 675,966.79 00 675,966 79 Trans Towers Frost Jacking Repairs 0.00 887,596.62 0.00 887,596.62 0.00 887,596.62 000 887 596 62ReplacePlantandSCADAControts0.00 1,344,683.05.0.00 1,344,683.05 0.00 1,344,683.05 000 1,344,683 05 Vibration Monftoring System 0.00 490.00 0.00 490.00 0.00 490.00 000 490 00 Battle Creek Feasibility 0.00 0.00 0.00 0.00 0.00 0.00 ooo 000 Fite Alarm System Replacement 0.00 0.00 0.00 0.00 0.00 0.00 350,000 00 350,000 00 Battie Creek Diversion 43,605.35 994,333.83 149,683.91 1,144,017.74 2,000.00 1,146,017.74 900 1,166,017 74 Replace Electro-Mechanical Relays 0.00 1,277.197.08 0.00 1,277,197.06 0.00 1,277,197.06 000 1.277.197 06 lFishwater Screen Debris Removal 21,929.45 21.929.45 290,306.96 312,236.43 0.00 312,238.43 000 '312.236 43 [Turbine Nozzie Repair 96,423.49 96,423.49}1,320,234 67 1,416,658.06 6,201.06 1,422,859.12 000 1,422,859 12 ISVC replacement Daves Creek|Soldotna 0.00 0.00]1,570,577,34 1,570,877.34 |5,773,822 66 7,344,400.00 ]1,360,400 00 8 704,800.00SpiiwayRaise0.00 0.00 0.00 0.00 0.00 0.00 350,000.00 350,00000I789,697 09 14,576,549 22 |3,330,802 80 17.907,352 02]5,782,023 72 23,689,375.74 Ff 2.060,400 00 25,749,775 74CurrentYearR&C Repayment (1,146,123.00}(3,262,788.00)|(2,793,306 63) Adjust bal to $5 mill (won't be corrected until year end)0.00 0.00 000 Leas interest in Fund Applied to Repayment 244 582 4t fi 61,777 62)|(143,00000NetTransterfromRevenueFund(1,390,705.41 '3,748672.09)(3,624,565 62)|__{2,936,306 63)] Cumulative Prior Years R&C Repayments (11,346,045.42)|(12,716,539.31)(18,409,249 92)(17,920,612 74) Due back to Utiittes 20,211.51 1,055,961.48 1,113,202.78 143,000 00 R&C Cumulative Interest (Retained)Applied As Part of Repayme 0.00 oo0 0.00 000 iNet R&C Repayments 11,325,833.91 (11,660,577 5 |18,296,047.12 17,777 612 74' INET DUE TO R&C FUND 1,860,009 90 2,498,102 10 5,768,763 00 5,035,856 37 R&C FUND CASH FLOW PROJECTION Batance 3,015,716.76 3,212,607.32 §,623,509.49 1,931,991 64 Disbursements-current year (788,797 23)(1,265,152.32)(4,194,471.88))(2,060,400 00)|Disbursements-priot year accrued (177 276.20)(22,899.86 (2,065,650 48)|(1,587 551 84) IR&C Repaymenttoutities (170,788.03](20,211.52)(1,055,961.11}(1.113.202 79) iNet other cash inflow(outfiow)(69,953.03)(29,508.22)000 Current year mterest earnings.244,582.41 287,080.93 143,000 00 Current year Participants Contributions to R&C 4,146,123 00 3,461,591.16 2,793,306 63 fenders levestment Balance 212,607 68 5.623.509 49 107,143 64 fAccrued R&C Payable at year end-Due to Utilities (20,211.51)(1,055,961.11}(1,113,20275)](143,000 00)Accrued due from Revenue fund {debt service transfer)69,953.03 IR&C payable back to Revenue fund (99,459.25) Accrued R&C vendor Payable at year end (22,899.85 (2,065,650.48)(1,587,551.84)000 PROJECTED NET DUE +ENDING INVESTMENT BALANCE 5.000.000 00 5.000.000 00 §,000,000.00 5,000,000 00 REPAYMENT AMOUNT $756,665.11 X 25%a 4 years total repaid remeiningto1,455,830.05 X 25%all 4 years th yr 363,957.51 320/18 pay at 7/1/18 Fv19 FY20 FY2t 1,401,948.53 X 25%all 4 years 3rd ye 350,487.13 [4thyr 350,487.13 1,401,948 53 = iS 1.834,499.92 X 25%yr 1 |25%yr 2 |50%yr 32ndyr 458,624.96 finalyr 917,249.96 1,834,499921S789,697.09 X 25%yr 1[75%yr 2 Tet yr 197,424.27 final yr 592,272 62 789,897.09 ° $3,330,802.80X25%yr t |32%yr 2 {25%yr 3 |18%yr 4 Ast yr 832,700.70 [2ndyr 1,065,856.90 31dyr 832,700 70 2,731,258 30 (599,544.50)589,544 50$5,673,785.03 x 25%all 4 years ist yr 1,445,505.93 [2nd yr 1,445,505 93 2,891,011.86 (2,691,011.86)=1,445,50593 =1,445.505.93$2,100,000 x 25%alt 4 years ist yr 515,100 00 515,100.00 (1,545,300.00)$15,100.00 515,100.00 515,100.00 . 1,370,493 90 2,692,710 61 2,511,362 83 2.793,30€63 (5.035,856.36)2,560,150 43 1,960,605 93 515,100.00 "FY {7 projects refiect budgeted and actual numbers for different projects depending en which is higher (budgeted or actua§,se the REC repayment amount reflects @ conservetive amount 2/16/201710:02 AM2018 BradieyBudget-DRAFT-021717-accelerated payments.xisx Sch D Page 14 of 14 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT FY 2017 2nd QUARTER REPORT REVENUES,EXPENSES &CHANGES IN SURPLUS REVENUES UTILITY CONTRIBUTIONS UTILITY CONTRIBUTIONS-Battle Creek INTEREST INCOME INTEREST INCOME-Battle Creek EXPENSES OPERATIONS RENEWAL/REPLACE (R&C REPAYMENTS) R&C INTEREST APPLIED AS REPMT NON R&C CAPITAL PURCHASES-See A1NONR&C CAPITAL PURCHASES-Battle Creek TRANSFER TO OPERATING RESERVE DEBT SERVICE (net of Capital Reserve Reduction) TRANSFER TO ARBITRAGE CURRENT YEAR SURPLUS(DEFICIT) CURRENT YEAR SURPLUS(DEFICIT)-Battle Creek PRIOR YEAR SURPLUS (DEFICIT) BEGINNING SURPLUS (DEFICIT) COMMITTED CY EXP &DEBT SVC ENDING SURPLUS (DEFICIT) BALANCE SHEET ASSETS REVENUE FUND OPERATING FUND BATTLE CREEK ACCOUNT DUE FROM R&C RECEIVABLE PREPAID LIABILITIES &SURPLUS CURRENT LIABILITIES CURRENT LIABILITIES-Battle Creek DUE TO R&C COMMITTED CY EXP &DEBT SVC PAYABLE TO UTILITIES O&M ° PAYABLE TO UTILITIES R&C OTHER INFORMATION OPERATING RESERVE MONTHLY CONTRIBUTIONS FY2016 FY2017 FY2017 ACTUALS AMENDED ACTUALS BUDGET 17,828,513 19,543,371 9,771,684 -800,000 800,0001,930,547 1,755,000 1,091,301 --251 19,759,060 22,098,371 11,663,237 4,273,633 5,154,110 1,783,977 2,405,630 3,262,783 1,631,394 287,081 -199,733 26,444 250,000 - -800,000 263,317(9,747)(85,531)(85,531) 12,494,600 12,426,200 6,213,100 281,419 290,809 334,404 19,759,060 22,098,371 10,340,394 --785,908 --536,934 --(1,322,843) 385,309 -361,848 1,403,738 -656,752 --800,251 1,055,961 - 85,194 -359,490 2,930,202 2,178,341 809,828 -855,498 .-1,322,843 1,064,413 -. 4,055,961 -. 2,930,202 2,178,341 1,116,353 1,030,822 1,030,822 1,654,119 1,628,614 1,628,614 1of7 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Schedule A-1 CAPITAL PURCHASES NOT FUNDED BY R&C FUND FY16 FY16 FY17 FY17 BUDGET |ACTUALS |BUDGET |ACTUALS Replace Fish Water Valve Actuators -26,444 250,000 - Weather Stations 15,000 --- DCS Security Interface for Data Access ---. Generator Partial Discharge Monitor --.. Lube Oil Purification System ---- Replace 1998 Chevrolet Crew Cab Vehicle ---. Replace 1990 Ford Single Cab Vehicle ---. Total Non R&C Capital Purchases paid for by all utilities 15,000 26,444 250,000 - [Battle Creek Diversion |-|-|800,000]263,317 | Total Non R&C Capital Purchases paid for by HEA,CEA,GVEA,MEA,Seward --800,000 263,317 Total Non R&C Capital Purchases 15,000 26,444 -1,050,000 263,317 2 of 7 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS &MAINTENANCE SCHEDULE B BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2016 THROUGH 12/31/2016 FY 17 FY 16 BUDGET % FY17 Approved 07/01/2016 -(Over)Under FY16 Approved Budget 12/31/2016 HEA Actual CEA Actual AEA Actual Total Actual |Budget to Date Budget FY16 Actual Summary by expense type Labor &Benefits 2,005,079 1,002,543 699,062 45,324 :744,386 258,157 2,143,222 1,738,336travel132,950 66,475 10,255 :-10,255 56,220 98,600 13,796 Training 49,300 24,650 1,619 ::1,619 23,031 38,731 10,819 Contractual 1,217,418 608,709 253,355 3,447 118,837 375,639 233,070 1,180,759 813,606 Supplies &Materials 229,358 114,680 26,392 2,722 .29,114 85,566 275,760 97,508 Other Costs 381,744 190,873 17,848 15,070 78,144 111,062 79,811 451,846 375,357 Equipment,Furniture and Machinery 11,500 $,750 850 ::850 4,900 33,130 6,051 Maintenance Projects -:ba ::*-37,900 1,900 Administrative Costs 1,126,761 563,381 26,104 -484,948 $11,053 $2,328 1,321,817 1,216,261 5,154,110 2,577,061 1,035,485 66,562 681,930 1,783,977 793,084 5,581,765 4,273,634 FERC 535 -Operation Supervision &Engineering Operations Sup/Eng Bradley Lake Operating Labor &Benefits 299,649 149,825 130,170 *:130,170 19,655 304,235 321,664 Travel 10,450 5,225 8,496 -.8,496 (3,271)9,500 9,281 Training 9,300 4,650 ---:4,650 7,904 2,080 Contractual 1,400 700 --:-700 1,445 . Supplies &Materials 4,100 2,050 ->--2,050 6,203 346 Bradley Lake Operating Total 324,899 162,450 138,666 >:138,666 23,784 329,287 333,371 FERC 535 -Operation Supervision &Engineering Totat 324,899 162,450 138,666 --138,666 23,784 329,287 333,371 FERC 537 -Hydraulic Expenses Hydraulic Expenses Bradley Lake Operating Labor &Benefits 92,748 46,373 33,446 ::33,446 12,927 95,273 81,677 Contractual 4,000 2,000 5,647 .*5,647 (3,647)17,180 : Supplies &Materials 2,900 1,450 179 i :179 1,271 2,608 1,277 Bradley Lake Operating Total 99,645 49,823 39,272 -a 39,272 10,551 115,061 82,954 FERC 537 -Hydraulic Expenses Total 99,645 49,823 39,272 ::39,272 10,551 115,061 82,954 FERC 538 -Electric Expenses Electric Expenses Bradley Lake Operating Labor &Benefits 242,940 121,470 98,375 a :98,375 23,095 257,107 215,439 Travel 7,000 3,500 1,759 --1,789 1,741 -. Training 25,000 12,500 1,619 -:1,619 10,881 30,827 8,739 Contractual 2,000 1,000 1,400 E :1,400 (400)3,342 1,400 Supplies &Materials 8,500 4,250 4,214 ::4,214 36 12,232 6,241 Bradley Lake Operating Total 285,440 142,720 107,367 -=107,367 35,353 303,508 231,820 FERC 538 -Electric Expenses Total 285,440 142,720 107,367 -:107,367 35,353 303,508 231,820 FERC 539 -Misc.Hydraulic Power Generation Expenses Misc Hydro Power Exp Bradley Lake Operating Labor &Benefits 178,991 89,496 73,876 -:73,876 15,620 189,473 158,532 Training 15,000 7,500 -:**7,500 -- Contractual 297,048 148,524 95,836 ::95,836 52,688 315,249 285,812 Supplies &Materials 17,900 8,950 7,258 ::7,258 1,692 22,000 19,041 Bradley Lake Operating Total 508,939 254,470 176,970 :-176,970 77,500 $26,722 463,385 BRADLEY CIRCUITS/RADIO TO BERNICE LK Other Costs 35,695 17,848 17,848 :z 17,848 ()30,000 31,059 BRADLEY CIRCUITS/RADIO TO BERNICE LK Total 35,695 17,848 17,848 ::17,848 0 30,000 31,059 BRADLEY CIRCUITS BERNICE LK TO ANCH Other Costs 29,773 14,887 =14,770 =14,770 117 28,746 29,864 BRADLEY CIRCUITS BERNICE LK TO ANCH Total 29,773 14,887 -14,770 :14,770 117 28,746 29,864 FERC 539 -Misc.Hydraulic Power Generation Expenses Total 574,407 287,205 194,818 14,770 -209,588 77,617 585,468 524,308 FERC $40 -Rents FERC Land Use Fee Bradley Lake Operating Other Costs 312,176 156,088 ::78,044 78,044 78,044 183,000 279,876 Bradley Lake Operating Total 312,176 156,088 -id 78,044 78,044 78,044 183,000 279,876 FERC 540 -Rents Total 312,176 156,088 bd :78,044 78,044 78,044 183,000 279,876 FERC 541 -Maintenance Supervision &Engineering Maint Supervision/Eng Bradley Lake Operating Labor&Benefits 224,283 112,142 94,624 --94,624 17,518 222,118 239,299 Bradley Lake Operating Total 224,283 112,142 94,624 --94,624 17,518 222,118 239,299 FERC 541 -Maintenance Supervision &Engineering Total 224,283 112,142 94,624 --94,624 17,518 222,118 239,299 3 0f? ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS &MAINTENANCE SCHEDULE B BUDGET TO ACTUAL EXPENSES ; FOR THE PERIOD 07/01/2016 THROUGH 12/31/2016 FY 17 FY 16 BUDGET % FY17 Approved 07/01/2016 -(Over}Under FY16 Approved Budget 12/31/2016 HEA Actual CEA Actual AEA Actual Total Actual |Budget to Date Budget FY16 Actual FERC 542 -Maintenance of Structures Maintenance of Structures Bradley Lake Operating Labor &Benefits 92,746 46,373 33,368 :-33,368 13,005 95,273 89,890 Contractual 10,000 5,000 ----5,000 -. Supplies &Materials 53,713 26,857 398 :-398 26,459 61,273 23,398 Equipment,Furniture and Machinery 11,500 $,750 850 ::850 4,900 11,500 6,051 Maintenance Projects =--:id :-4,000 1,827 Bradley Lake Operating Total 167,959 83,980 34,616 :-34,616 49,364 172,046 121,166 FERC 542 -e of Structures Total 167,959 83,980 34,616 :i 34,616 49,364 172,046 121,166 FERC 543 -Maintenance of Reservoirs,Dams &Waterways Maint Res,Dams,WWays Bradley Lake Operating Labor &Benefits 50,409 25,205 49,440 --49,440 {24,235)}$1,276 42,849 Contractual $,200 2,600 63,704 -:63,704 (61,104)!5,200 9,080 Bradley Lake Operating Total 55,609 27,805 113,144 :-113,144 (85,339)$6,476 51,929 BRADLEY NUKA REPAIR Contractual 15,000 7,500 409 --409 7,091 -- Equipment,Furniture and Machinery :>:+-:-21,630 - BRADLEY NUKA REPAIR Total 15,000 7,500 409 :id 409 7,091 21,630 - BRADLEY POWER TUNNEL MAINT (Dam) Contractual 15,000 7,500 311 -=312 7,189 20,000 3,673 BRADLEY POWER TUNNEL MAINT (Dam)Total 15,000 7,500 311 :ia 311 7,189 20,000 3,673 BRADLEY POWER TUNNEL DRAIN CLN/INSP (P/House) Supplies &Materials ::::::::1,557 Maintenance Projects ---=ba :-9,000 = BRADLEY POWER TUNNEL DRAIN CLN/INSP (P/House)Tota :-:--°>9,000 1,557 FERC $43 -of Reservoirs,Dams &Waterways To!85,609 42,805 113,864 °-113,864 {71,059)|107,106 57,158 FERC 544 -Maintenance of Electric Plant Maintenance of Elec Plant Bradley Lake Operating Labor &Benefits 370,983 185,492 134,127 :=134,127 51,365 381,093 336,417 Travel 4,500 2,250 .::-2,250 3,500 3,270 Contractual 79,000 39,500 10,607 -:10,607 28,893 91,443 69,651 Supplies &Materials 27,245 13,623 5,867 ::5,867 7,756 27,245 10,142 Bradley Lake Operating Total 481,728 240,865 150,601 :-150,601 90,264 $03,281 419,480 FERC 544 -Maintenance of Electric Plant Total 481,728 240,865 150,601 *-150,601 90,264 $03,281 419,480 FERC 545 -Mai of Misc.Hydraulic Plant Maint of Misc Hydr Plant Bradley Lake Operating Labor &Benefits 92,746 46,373 33,825 -:33,825 12,548 95,273 94,654 Contractual 3,900 1,950 ::::1,950 3,900 - Supplies &Materials 43,000 21,500 6,626 --6,626 14,874 43,000 28,044 Bradley Lake Operating Total 139,646 69,823 40,451 .-40,451 29,372 142,173 122,697 BRADLEY FISH WATER DSGN/MIDDLE FORK SHACK IMPR Contractual 20,000 10,000 :-=-10,000 .- Maintenance Projects ::=:bd =-24,900 - BRADLEY FISH WATER DSGN/MIDDLE FORK SHACK IMPR Td 20,000 10,000 *-:-10,000 24,900 . FERC 545 -of Misc.Hydraulic Plant Total 159,646 79,823 40,451 °:40,451 39,372 167,073 122,697 FERC 556 -System Control &Load Dispatching System Cntl &Load Disp Bradley Lake Operating Labor &Benefits 49,502 24,791 17,812 *-17,812 6,939 49,000 10,479 Contractual 60,500 30,250 2,364 a =2,364 27,886 8,500 31 Supplies &Materials 6,000 3,000 1,850 --2,850 1,150 6,199 4,090 Bradley Lake Operating Total 116,002 58,001 22,026 +-22,026 35,975 63,699 14,599 BRADLEY POWERHOUSE PC'S Contractual ::::ha ::50,000 37,261 BRADLEY POWERHOUSE PC'S Total =--.-:i 50,000 37,261 Snow Measurement Bradley Lake Operating Contractual 10,000 5,000 ::5,000 5,000 0 10,000 10,000 Bradley Lake Operating Total 10,000 5,000 :-$,000 5,000 0 10,000 10,000 Seismic Service Bradley Lake OperatingContractual 60,370 30,185 -:35,255,35,255 (5,070)62,000 60,370 Bradley Lake Operating Total 60,370 30,185 :-35,255 35,255 (5,070)62,000 60.370 Streamguaging Serv Bradley Lake Operating Contractual 310,000 1S5,000 :=78,582 78,582 76,418 296,000 301,338 Bradley Lake Operating Total 310,000 155,000 ::78,582 78,582 76,418 296,000 301.338 4of7 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS &MAINTENANCE SCHEDULE B BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2016 THROUGH 12/31/2016 FY 17 FY 16 BUDGET % FY17 Approved 07/01/2016 -{Over)Under FY16 Approved Budget 12/31/2016 HEA Actual CEA Actual AEA Actual Total Actual |Budget to Date Budget FY16 Actual Permits Bradley Lake Operating Other Costs 100 50 ::100 100 (50)100 350 Bradley Lake Operating Total 100 50 --100 100 {50}100 350 FERC 556 -System Control &Load Dispatching Total 496,472 248,236 22,026 -118,937 140,963 107,273 481,799 423,918 FERC 562 -Station Expenses Station Expenses Bradley Lake Operating Labor &Benefits 130,414 65,207 -45,324 :45,324 19,883 281,852 147,344Travel6,000 3,000 :-:-3,000 26,000 ;(31) Contractual 4,000 2,000 -3,447 .3,447 (1,447)6,500 1,244 Supplies &Materials 16,000 8,000 -2,722 :2,722 5,278 95,000 2118 Other Costs 4,000 2,000 -300 :300 1,700 +9,208 Maintenance Projects :---:---73 Bradley Lake Operating Total 160,414 80,207 -51,792 :$1,792 28,415 379,352 159,956 FERC 562 -Station Expenses Total 160,414 80,207 -51,792 -51,792 28,415 379,352 159,956 FERC 571 -Maintenance of Overhead Lines Maint of OH Lines Bradley Lake Operating Labor &Benefits 179,671 89,836 -.::89,836 146,320 94 Travel .95,000 47,500 ::a -47,500 54,600 1,276 Contractual 50,000 25,000 ----25,000 90,000 33.746 Supplies &Materials 50,000 25,000 >:::25,000 7 1258 Bradley Lake Operating Total 374,671 187,336 ----187,336 290,920 36371 BRADLEY JUNCTION SWITCH REMOVAL Travel 5,000 2,500 ::::2,500 -- Contractual 70,000 35,000 73,076 :*73,076 (38,076)-- Other Costs :=:-:::210,000 25,000 BRADLEY JUNCTION SWITCH REMOVAL Total 75,000 37,500 73,076 :-73,076 (35,576)210,000 25,000 BRADLEY MARKER BALL REPLACEMENT Labor &Benefits :::::-:4,929 - Travel 5,000 2,500 >-=-2,500 $,000 - Contractual 200,000 100,000 :E ::100,000 200,000 . BRADLEY MARKER BALL REPLACEMENT Total 205,000 102,500 >--:102,500 209,929 . FERC 571 -Maintenance of Overhead Lines Total 654,671 327,336 73,076 *73,076 254,260 710,849 61,371 FERC 920 &930 -Administrative Expense AEA Bradley Fixed Admin Fees Bradley Lake Operating Administrative Costs 200,000 100,000 -:100,000 100,000 0 200,000 200,000 Bradley Lake Operating Total 200,000 100,000 --100,000 100,000 0 200,000 200,000 Operating Committee Exp-Audit Bradley Lake Operating Administrative Costs 16,494 8,247 --16,500 16,500 (8,253)116,250 101,530 Bradley Lake Operating Totai 16,494 8,247 .-16,500 16,500 {8,253}116,250 101,530 Operating Committee Exp-Legal Bradley Lake Operating . Administrative Costs 25,000 12,500 --16,524 16,524 (4,024)25,000 77,719 Bradley Lake Operating Total 25,000 12,500 >=16,524 16,524 {4,024}25,000 77,719 Operat Committee Exp-Arbitrage Bradley Lake Operating Administrative Costs 3,630 1,815 =:::1,815 3,630 7,010 Bradley Lake Operating Total 3,630 1,815 =:--1,815 3,630 7,010 Trust &Account Fees Bradley Lake Operating Administrative Costs 12,000 6,000 ::$,959 5,959 41 12,300 11,918 Bradley Lake Operating Total 12,000 6,000 --$,959 5,959 41 12,300 11,918 Misc Admin Bradley Lake Operating Administrative Costs ::z ::--:8,375 Bradley Lake Operating Total ------:-8,375 FERC 920 &930 -Administrative Expense Total 257,124 128,562 -*138,983 138,983 (10,421)357,180 406,552 FERC 924 &925 -insurance Premiums Insurance Premiums Bradley Lake Operating Administrative Costs 564,637 282,319 26,104 -250,747 276,852 5,467 574,637 530,522 Bradley Lake Operating Total 564,637 282,319 26,104 -250,747 276,852 5,467 574,637 $30,522 FERC 924 &925 -Insurance Premiums Total 564,637 282,319 26,104 :250,747 276,852 5,467 $74,637 $30,522 Sof? ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS &MAINTENANCE SCHEDULE B BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2016 THROUGH 12/31/2016 FY 17 FY 16 BUDGET % FY17 Approved 07/01/2016 -(Over)Under FY16 Approved Budget 12/31/2016 HEA Actual CEA Actual AEA Actual Total Actual |Budget to Date Budget FY16 Actual FERC 928 -b yc issi FERC Admin Fees Bradley Lake Operating Administrative Costs 180,000 90,000 ::::90,000 210,000 182,885 Bradley Lake Operating Total 180,000 90,000 --<-90,000 210,000 182,885 FERC Related Prof Services BRADLEY FERC PART 12 INSPECTION Administrative Costs 25,000 12,500 ::1,362 1,362 11,138 $5,000 35,663 BRADLEY FERC PART 12 INSPECTION Total 25,000 12,500 ::1,362 1,362 11,138 55,000 35,663 BRADLEY CONTRACTUAL ENGINEER-FERC LICENSE ISSUES Administrative Costs 100,000 50,000 -:93,856 93,856 (43,856;125,000 60,638 BRADLEY CONTRACTUAL ENGINEER-FERC LICENSE (SSUES T:100,000 $0,000 a :93,856 93,856 (43,856)125,000 60,638 FERC 928 -Regut yc i Total 305,000 152,500 id :95,218 95,218 57,282 390,000 279,187 Total Bradley Lake Budget $,1$4,110 2,577,061 1,035,485 66,562 681,930 1,783,977 793,084 $,581,765 4,273,634 6 of7 BRADLEY LAKE R&C FUND DISBURSEMENTS AND REPAYMENTS SCHEDULE D Actual Actual Actual Actual Budget FY16 TO REPAY @ 12/31/16 TO REPAY FY17 Description Expense 6/30/2016 Expense 6/30/2017 R&C FUND PROJECTS Govemor 0.00 4,052,070.14 0.00 4,052,070.14 0.00 Replace RFLS 0.00 251,092.69 0.00 251,092.69 0.00 Replace Runners 0.00 1,946,732.79 0.00 1,946,732.79 0.00 Replace cable from dam to power house 0.00 2,321,922.94 0.00 2,321,922.94 0.00 Replace power system stabilizer 0.00 619,205.10 0.00 619,205.10 0.00 Replace two RTUs 0.00 86,905.27 0.00 86,905.27 0.00 Culvert Repairs 0.00 675,966.79 0.00 675,966.79 0.00 Tower Repair for Jack Frost Heaves 0.00 887,596.62 0.00 887,596.62 0.00 Replace Plant and SCADA Controls 0.00 1,344,683.05 0.00 1,344,683.05 0.00 Vibration Monitoring System 0.00 490.00 0.00 490.00 0.00 Fire Alarm System Replacement 0.00 0.00 0.00 0.00 350,000.00 Battle Creek Diversion 149,683.91 1,144,017.74 2,000.00 1,146,017.74 0.00 Bradley Replace Electro-Mechanical Relays 0.00 1,277,197.06 0.00 1,277,197.06 0.00 Fishwater Screen Debris Removal 290,306.98 312,236.43 0.00 312,236.43 0.00 Turbine Nozze!Repair 1,320,234.57 1,416,658.06 6,201.06 1,422,859.12 0.00 SVC replacement Daves Creek |Soldotna 1,570,577.34 1,570,577.34 2,172,918.02 3,743,495.36 5,665 583.97 3,330,802.80 |17,907,352.02 2,181,119.08 |20,088,471.10 6,015,583.97 Current Year R&C Repayment (3,461,591.16)(1,631,394.00) Adjust to balance to $5million 0.00 0.00 interest in Fund Applied to Repayment (287,080.93)(199,733.29) Net Transfer from Revenue Fund (3,748,672.09)(1,831,127.29)| Cumulative Prior Years R&C Repayments (12,716,539.31)(15,409,249.92) Due Back to Utilities 1,055,961.48 219,990.62 Adjust Due to R&C Actual 0.00 |0.00 (11,660,577.83)(15,189,259.30) INET DUE TO R&C FUND 2,498,102.10 |3,068,084.54 R&C FUND CASH FLOW PROJECTION Beginning Investment Balance 3,212,607.32 5,623,509.49 Disbursements-current year -Accrual (1,265,152.32)(1,791,812.08) Disbursements-prior year accrued (22,899.86)(2,065,650.48) Utilities'R&C Repayment (20,211.52)(1,055,961.11) Net other cash inflow(outflow)(29,506.22)0.00 Current year interest eamings 287,080.93 199,733.29 Participants Contributions to R&C Fund ___3,461,591.16 |___1,631,394.00| Ending Investment Balance 5,623,509.49 2,541,213.11 Accrued Due to Utilities (1,055,961.11)(219,990.62) Accrued Due from Revenue fund (debt services transfer) R&C payable back to the revenue fund Accrued R&C vendor Payable at Year End eee (2.065 650.48)}(389.307.00) PROJECTED NET DUE +ENDING INVESTMENT BALANCE §,000,000.00 §,000,000.00 REPAYMENT AMOUNT $756,665.11 x 25%all 4 years $1,455,830.05 x 25%all 4 years $1,401,948.53 x 25%all 4 years 4th yr 350,487.13 $1,834,499.92 x 25%yr 1 |25%yr 2 |50%yr 3 final yr 917,249.96 $789,697.09 x 25%yr 1 |75%yr 2 final yr 592,272.82 $3,330,802.80 x 25%yr 1 |32%yr 2 |25%yr 3 |18%yr 4 1st yr 832,700.70 |2nd yr 1,065,856.90 1,758,886.75 $2,181,119.08 x 25%all 4 years Ast yr 545,279.77 1,503,895.99 2,692,710.61 |1,611,136.67 3.262,782.74 7of7 Bradley Lake Operator Report Bradley Project Management Committee February 17,201°7 Unit Statistics:02/17/2017 Generation Unit 1 (MWhrs)Unit 2 (MWhrs)Total (MWhrs) December 2016 24,089 16,557 40,647 January 2017 22,482 16,591 39,074 Hydraulics Avg.Lake Level (ft)Usage (ac ft)Fishwater (ac ft) December 2016 1,156 40,413 2,783 January 2017 1,144 41,622 2,817 Lake Level -1,139 (Feb 6)Unit Avalibility 100%(Dec-Jan) Operations,Maintenance,and Inspections: 1) 2) 3) 4) Management change -Alan Owens has taken a position within HEA as Manager of Power Production and Dispatch.Bob Day will be assuming duties as the Bradley Lake Project Manager.This is effective the first of January. Bradley O&D Representative -Alan Owens will be the HEA voting representative for the Bradley O&D and Bob Day will be the HEA alternate. Bradley Unit #2 nozzle seal -There is basically no change to the status of the nozzle oil leak. The unit is not currently de-rated as oil drain leakage has been sustainable.CEA dispatch has been provided the following guidelines to minimize nozzle oil pressures and nozzle transitions. 1.The unit is not de-rated and can dispatched to full load during system emergency conditions. 2.Do not use Unit #2 for AGC control. 3.To the extent possible park the unit within one of the following three load ranges. 16 MW or less (this automatically places two nozzles in service) 20-32 MW (this utilizes 4 nozzles in service) 40-48 MW -should only be used when economically required,will place 6 nozzles in service. Spare O-rings and seals are on site if nozzle oil seal leakage increases to the point that repairs are required.We are communicating with Fuji reps and the repair contractor as the exact cause of the oil leak has not been determined.The cause may not be determined until an internal inspection and evaluation is completed. An outage of approximately 3 weeks will be required to dismantle,evaluate,and replace the seals.The current plan is to monitor oil leakage and attempt to delay repairs until the tentatively scheduled tie line outage in March of 2017. Unit #2 Accusonic flow meter -Unit #2,flow meter began to show intermittent signs of instrument failure last month.Additional parts are on order and we are Currently waiting for parts,staff has a work around so readings will not be lost. Bradley Lake Operator Report Page 1 5)CSI Equipment -The machinery monitoring system is showing signs of intermittent failures.We are trying to gather information and see if we can fix the issue. 6)Marker Ball Replacement -It appears that Northern Power Lines Constructors is the successful bidder bids received were: Northern Powerline Constructors Inc.$§100,712.00 Electric Power Constructors Inc.$169,626.83 Hotwire LLC $199,802.75 Training accomplished: 1)Dealing with drug and Alcohol abuse -Standard safety meeting training. 2)Training on the portable hydraulic skid operation -Training conducted by one of the experienced Bradley staff members. Bradley Lake Operator Report Page 2 Bradley Lake Project Management Committee -A¢aska Online Public Notices Page 1 of 1 s ¢a STATUS:Active Bradley Lake Project Management Committee ALASKA ENERGY AUTHORITY (AEA) Bradley Lake Project Management Committee Notice is hereby given that the Bradley Lake Project Management Committee will hold a regular meeting on Friday,February 17,2017 immediately following the IMC.Estimated start time for the BPMC meeting is at 10:00 a.m.For additional information contact Teri Webster at 907-771-3074. This meeting will be conducted by electronic media pursuant to AS 44.62.310 at the following location: Alaska Energy Authority Board Conference Room,813 West Northern Lights Boulevard,Anchorage,Alaska; A teleconference line has been set up for those unable to attend in person.Dial 1-888-585-9008,Enter Code 467-050-126#. The public is invited to attend.The State of Alaska (AEA)complies with Title Il of the Americans with Disabilities Act of 1990.Disabled persons requiring special modifications to participate should contact AEA staff at 907- 771-3074 to make arrangements. Attachments,History,Details Attachments Details BPMC Agenda 2-17.pdf Department:Economic Development and Revision History Category:Public Notices Created 2/9/2017 9:59:56 AM by Sub-Category:Advisory Committee Meeting tawebster Location(s):Statewide Modified 2/14/2017 9:26:23 AM by [Details]Project/Regulation #: tawebster Publish Date:2/9/2017 Archive Date:2/18/2017 Events/Deadlines: https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=18458 1 2/14/2017 Bradley Lake Project Management Committee -Alaska Online Public Notices Page 1 of 1 ron § STATUS:Active Bradley Lake Project Management Committee ALASKA ENERGY AUTHORITY (AEA) Bradley Lake Project Management Committee Notice is hereby given that the Bradiey Lake Project Management Committee will hold a regular meeting on Friday,February 17,2017 immediately following the IMC.Estimated start time for the BPMC meeting is at 10:00 a.m.For additional information contact Teri Webster at 907-771-3074. This meeting will be conducted by electronic media pursuant to AS 44.62.310 at the following location: Alaska Energy Authority Board Conference Room,813 West Northern Lights Boulevard,Anchorage,Alaska; A teleconference line has been set up for those unable to attend in person.Dial 1-888-585-9008,Enter Code 467-050-126#. The public is invited to attend.The State of Alaska (AEA)complies with Title Il of the Americans with Disabilities Act of 1990.Disabled persons requiring special modifications to participate should contact AEA staff at 907- 771-3074 to make arrangements. Attachments,History,Details Attachments Details None .Commerce,Community andDepartment:Economic Development Revision History Category:Public Notices Created 2/9/2017 9:59:56 AM by tawebster Sub-Category:Advisory Committee Meeting Location(s):Statewide Project/Regulation #: Publish Date:2/9/2017 Archive Date:2/18/2017 Events/Deadlines: https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=184581 2/9/2017 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING AGENDA Friday,February 17,2017 10 a.m. Alaska Energy Authority's Board Room 813 West Northern Lights Boulevard,Anchorage,AK To participate,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 -Dec.14,2016 7.NEW BUSINESS A.Battle Creek project update AEA B.NHA Membership AEA C.Draft FY18 Bradley Budget Budget Committee ID Cradley CLM Procureneat ugcoke, TE Bradley org chact 8.COMMITTEE REPORTS 9.OPERATOR REPORT 10.COMMITTEE ASSIGNMENTS 11.MEMBERS COMMENTS 12.NEXT MEETING DATE -TBD 13.ADJOURNMENT BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING AGENDA Friday,February 17,2017 - 10am.7 Alaska Energy Authority's Board Room 813 West Northern Lights Boulevard,Anchorage,AK To participate,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 -Dec.14,2016 7.NEW BUSINESS A.Battle Creek project update AEA B.NHA Membership AEA C.Draft FY18 Bradley Budget Budget Committee 8.COMMITTEE REPORTS O4D Expense eeport thre Bec 9.OPERATOR REPORT 10.COMMITTEE ASSIGNMENTS 11.MEMBERS COMMENTS 12.NEXT MEETING DATE -TBD 13.ADJOURNMENT TE -no eouMenr Ht PO7S!-AEA fiwe Stra teat ane Br radbell g.Expunse report Thru Dec q Operators Report ey.radhe+pate on Rulbott lansttissim planBha-TY ®HAA vudegt Michael -Ore chart caudaa concern,Ho Gund ioup,Lee -Pepanse tp AoZai Totune Gey-Ty fo ue AS arch \1 Budge!Meehng WS! BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Alaska Energy Authority,Anchorage,Alaska February 17,2017 1.CALL TO ORDER Chair Borgeson called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 9:46 a.m. 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 [MLP]);Brad Janorschke (Homer Electric Association [HEA]);and John Foutz (Seward). 3.PUBLIC ROLL CALL Bryan Carey,Katie Conway;Jocelyn Garner,Jennifer Haldane,Valerie Leavitt,David Lockard, Kelli Veech,Kirk Warren,Teri Webster,Brandi White (AEA);Brian Bjorkquist (AttorneyGeneral's Office [AGO]);Crystal Enkvist (Alaska Power Association [APA]);Brian Hickey,Mark Johnson,Russ Thornton,Burke Wick (CEA);Bob Day,Emily Hutchinson (phone),LarryJorgensen,Alan Owens (HEA);Kirk Gibson (Mcdowell Rackner Gibson PC);Jim Brooks,Gary Kuhn,David Pease (MEA);Anthony Scott (MLP);Jay Layne (phone),Bernie Smith (RegulatoryCommissionofAlaska[RCA]);Sydney Hamilton (Accu-Type Depositions);and TW Patch (Public). 4,PUBLIC COMMENTS None. 5,AGENDA APPROVAL MOTION:Mr.Johnston made a motion to approve the agenda.Motion seconded by Mr. Izzo. Mr.Lamb requested to amend the agenda adding Item 7D.Bradley O&M Procurement Update and Item 7E.Bradley Project Organizational Chart The agenda was approved as amended. 6.APPROVAL OF PRIOR MINUTES -December 14,2016 MOTION:Mr.Foutz made a motion to approve the minutes of December 14,2016. Motion seconded by Mr.Janorschke. The motion passed without objection. 7.NEW BUSINESS DRAFT BPMC Minutes 2/17/17 Page 1 of 5 A.Battle Creek Project Update Mr.Carey reviewed the Battle Creek Project update data sheet provided to members.The permitted water rights for the project were received from Department of Natural Resources (DNR).Revised information for the land lease were submitted to DNR and is expected to be prioritized before the brush is cleared in July.The Federal Energy Regulatory Commission (FERC)Fish Plan sent out three weeks ago has received comments from Fish and Game,and will be used as a template for future licensees. Mr.Carey noted the schedule is currently on track and will only be delayed if the financing and agreements do not move forward as anticipated.The timeline includes the initial request for proposal (RFP)in late June,site visit for contractor and clearing in August,bids received in late fall,road construction in 2018,pipe and dam installation in 2019,and the diversion beginning in 2020.Mr.Carey stated the finalized 95%cost estimate came in less than the previous estimate and is approximately $46.7 million. Mr.Thibert asked Mr.Gibson if a majority of the members is required to approve financing.Mr. Gibson noted he will research the alternatives and provide the answer at a later date.Chair Borgeson requested more information from Mr.Gibson and AEA regarding the specifics of the es o seBattleCreekProjectifonlytwomemberswantedtoparticipate.55INW INS 6 Mr.Lamb discussed the letter to AEA from CEA,GVEA,and MEA in March of 2016,which asserts if there was not a path for the electricity to come forward there would be a legal challenge of the obligation to pay the debt under the Power Sales Agreement.This letter puts the financial security of the asset at risk.AEA's bond counsel has communicated to the three utilities'attorneys AEA would not be able to go out to the market for Battle Creek bond financing until the security issue raised in the letter for repaying the debt has been resolved in writing.Mr. Thibert thought the issue was resolved but Chair Borgeson stated they did not retract that position.GVEA has concerns eee es an AEA-owned asset and Battle Creek is part of it.Mr.Lamb requested the issue'on ing be resolved and the utility participation beresolved.NG P50 EQRUECABILTY Sia creek Chair Borgeson noted there is not complete alignment of the utilities going forward with the Battle Creek Project.At the previous meeting,one member utility stated they would not participate in the diversion and they did not contribute to the $800,000 engineering construction drafts but they can join the project prior to financing discussions. Chair Borgeson tasked Mr.Gibson to review the issues and place it on the agenda for the next meeting.Chair Borgeson stated the March 2016 letter and responses will be provided to all members. MOTION:Mr.Janorschke made a motion requesting AEA,with support from the Finance Committee,to provide Battle Creek Project financing models within 30 days that assume the security issues are resolved.Motion seconded by Mr.Johnston. The motion passed,with Mr.Johnston abstaining. Mr.Johnston stated MLP expressed an interest not to participate in the Battle Creek Project. B.National Hydroelectric Association Membership DRAFT BPMC Minutes 2/17/17 Page 2 of 5 Mr.Carey stated AEA belonged to NHA using Susitna-Watana Hydro funds but that is no longer available.He requested the membership of $10,000 be renewed through the BPMC.All Bradley utilities and AEA would receive membership benefits.Mr.Carey noted this is not a current budget line item and recommended the decision be made by motion. MOTION:A motion was made to approve an expenditure of $10,000 for AEA's NHA membership,as outlined in Mr.Carey's January 6,2017 memo.Motion seconded by Mr. Janorschke. A roll call vote was taken,and the motion passed unanimously. C.Draft FY18 Bradley Budget Ms.Garner informed members have until April 1st to amend and approve the draft FY18 Bradley Budget.Any amendments are to be brought to Ms.Garner and the finalized budget will come before the full Committee for approval at the next meeting.Ms.Garner highlighted the summary budget changes from last year.Mr.Day noted he is nearly full-time as the Bradley Project Manager.Mr.Owens is the Power Production Manager.Mr.Jorgensen is the Director of Power.Mr.Day explained the construction year spans the summer and the fiscal year splits the summer.He reviewed the short-term capital projects that were approved,funded and began during this year's budget,but will not be completed until next fiscal year.Approximately $600,000 of the budgeted amount will be refunded to the members with the request for carry- over into the FY18 budget for completion of the short-term projects. Chair Borgeson asked if the budget includes an expense item for reclamation of the project after the life of the dam.Mr.Carey is not aware of any reclamation funding and reclamation is not a typical practice for FERC projects.Mr.Carey noted the expected life of the dam is 500-plus years.The State has no obligation to restore the lake to its original condition under the FERC license. Chair Borgeson inquired if the spillway work is considered project work.Mr.Thibert and Mr. Janorschke stated the spillway work is project work. D.Bradley O&M Procurement Update Mr.Lamb requested input from the members regarding benefits to opening the RFP process to xothersbeyondthecurrentqualifiedresponders.Mr.Bjorkquist informed AEA regulations provide two options for the operator;AEA employees or a qualified utility.Mr.Bjorkquist believes statutory and regulatory language includes the operator has to be a certificated utility served by the project. Chair Borgeson requested information on the difficulty and length of time to broaden the scope of the regulations.Mr.Bjorkquist believes the adoption process takes approximately 90 days. MOTION:Mr.Lamb made a motion to modify the regulations such that the largest number of qualified responders are permitted for the O&M procurement RFP.Motion seconded by Mr.Johnston. Mr.Izzo noted the challenge with the motion is the definition of the use of the word qualified. Mr.Thibert requested more time to review the issue and the motion.Mr.Johnston asked for an update on the RFP timeframe.Mr.Lamb stated the timeframe is two years,minus the month- and-a-half that has already passed.The decision was made at the previous meeting the RFP will provide an all-inclusive scope describing the criteria of a qualified responder. DRAFT BPMC Minutes 2/17/17 Page 3 of 5 MOTION:Mr.Thibert made a motion to table the motion to modify the regulations until the March 2017 meeting.Motion seconded by Mr.Johnston. The motion to table passed unanimously. The motion to modify the regulations was tabled until the March 2017 meeting. Chair Borgeson requested an update on the envisioned process of excluding a utility,who will participate in the RFP,from the evaluation committee.Mr.Lamb explained an inquiry will be sent to the utilities regarding participation in the RFP.Any utility that is interested in responding to the RFP will not participate in the scoping development process.Any utility that will not respond to the RFP will participate in the scoping development process.If all utilities are interested in responding to the RFP,AEA will develop the scope with the assistance of outside knowledgeable and qualified persons. E.Bradley Project Organizational Chart Chair Borgeson reported the Bradley Project Organizational Chart was erroneously sent from his office to all members.He apologized for the error.It was meant to go to the Railbelt managers. Mr.Lamb requested more information regarding the chart and its intent.Chair Borgeson stated he has nothing further to add and the chart was sent to Mr.Lamb in error.Mr.Lamb commented Bradley is an AEA-owned public asset and the organizational chart related to Bradley does not include the owner.Mr.Lamb asked the member utilities present at themeetingtocomment.+O "TITY Rese nded: Chair Borgeson expressed this is a year of unity for the Railbelt with positive ways going forward to provide low-cost energy to members.As they look at strategic planning,they are looking at a lot of models and options for the Railbelt utilities. Mr.Lamb asked if Bradley Lake,an State public owned asset,is an option.Mr.Borgeson stated he had nothing further to add. Mr.Thibert reported he had not seen the chart before it was accidentally sent out to all members.He noted strategic discussions have occurred regarding options because the State has been reviewing the agencies of AEA,AHFC,and AIDEA.of CASH: Mr.Lamb stated the utilities benefited when the State helped build Bradley and paid for half ofwithit$165M'The State helped builithe Intertie and works to support the Railbelt group t- regarding Battle Creek to support low cost energy.He convened his disappointment and will discuss this with the AEA Board regarding the utilities'lack of transparency and lack of willingness to discuss the organizational chart. 8.COMMITTEE REPORTS The OMB Committee met and the primary focus was the budget,which was forwarded to the Budget Committee. Ms.Garner informed the expense report through December is included in the member packets. There were no questions. DRAFT BPMC Minutes 2/17/17 Page 4 of 5 9.OPERATOR REPORT Mr.Day submitted the Operator Report.There were no questions. 10.COMMITTEE ASSIGNMENTS Chair Borgeson reviewed assignments.Mr.Gibson will review alternative scenarios,including legal issues,for the Battle Creek Project with respect to less than 100%of Bradley member utilities participating.The Finance Committee will provide information to the utilities on the financing costs and models of the Battle Creek Project.Mr.Gibson will review the March 2016 letter and provide the letter and responses to all member utilities. 11.MEMBERS COMMENTS Mr.Izzo requested a future update on the Boston Consulting Group (BCG),AO 281,and the recommendation regarding the merger of AEA and AHFC,specifically concerning the AEA- owned assets,Intertie and Bradley Project.Mr.Lamb stated there is legislative intent outside of AO 281 which had multiple scope questions that have to do with the colocation of agencies and not the merging of agencies.Mr.Lamb is not aware the Administration has taken a position on the recommendations of BCG. Mr.Foutz expressed appreciation to Mr.Day and staff for tightening their operating budget. Mr.Lamb commented the receipt of the organizational chart causes concern for AEA.The lack of transparent discussion is disconcerting.Mr.Lamb expressed his guard is up and he is wary. Mr.Thibert responded the outcomes of the studies by the Administration could have an impact on members'operations and the ability of AEA to continue its current functions.He believes the utilities are reviewing ways to protect themselves. Chair Borgeson expressed appreciation to Ms.Webster for her extraordinary efforts.He expressed his confidence in Mr.Day and thanked him for returning to the Bradley project.He expressed appreciation for those in attendance for their work. 12.NEXT MEETING DATE -TBD The next meeting date is March 17,2017. 13.ADJOURNMENT There being no further business for the committee,the meeting adjourned at 11:51 a.m. BY: Cory Borgeson,Chair Attest: Michael Lamb Alaska Energy Authority,Secretary DRAFT BPMC Minutes 2/17/17 Page 5 of 5 70 opnetors REP Beud Lap proc renent updateTECrdleyorgChant Tk Fvancys,BAe oerREVELMAnt Vey fat iF Rett owns Beit Ck.post \Qyec hoo fo CETAYpostkenbASAaligned ren,cen,GVEA|HEA notes cetracked im Jordi |u cm 'leather _GLE Ba ap te rai5bapprovedOn&Pict neh pryedpnobebeMayechloutnatsveonhowlod rnancies tatescostr|fp .poy)Motion Nok rwenk WlMurdle Is solved ty sywerleen Krancig do determing,SF who rane);LS W/out by next Meehag ;Finance om ]1-Suhl we iam Motun pa.cved)AB augUL4Palosiamne!K-Finance Sub commen kee -BC Froanci ed brad LeuB.C how 1D oe auoned oy AEA since ib 1s Tue (oS Hithion -Coatey Bradley ncyt MIG -bier level budses overview (S Spill wor payer work?Ves 22 REP ran izTDlooLarenoetoosma?Qualbed ud)ty In Maer @noa 1€rarlbely![;30CerhfcatedwhtbypraectAinStatubesRKaeulackonscnange. Michad Motion langeak +be per mrtted eau \ator Change var Gy As Curso *Qualfied”F4/rothingfableMorehme+>Yan CEOLeaMohn-pashparo Aebladn Vary iy Lee ATTENDANCE -_BPMC REGULAR MEETING,Feb 177@ 10:00 am||COMMITTEE MEMBERS .ALTERNATE - een)Borgeson,Chair GVEA -_Thompson -*Lee Thibert,Vice Chair -'CEA _(/Burke Wick-Brad Janorschke HEA _”Bob Day | we Michael Lamb,'Secretary/T reasurer AEA }_"bryan Carey A Tony Izzo MEA /Cary Kuhn Sf Mark Johnston MLP_-JefWamer WAJohnFoutz SEW -|Jeff Estes .noe Public>Members oe ee -ae COUNSEL :ana ::--ee :krKirk Gibson,McDowell Rackner&Gibson PC ane:t of Law " Crystal Enkvist(APA)Mel Hutchinson (APA) Rich Baldwin (HEA)| |Anna Henderson (MLP)VY Alan Owens (HEA)7 (Bertie SmithLee JOY GENSOW-Lo pateiDokMonten _. rian Lhelbey.;Brand,Joon.1.de ce.ly i 1 'i ' :\ || wt. i i >neces net cone mi enn enn ne enn en mt etm | 4 '{ | i | a tn ae shenaemens o a = ': ||: | '+} |!| {:: i ' i wore oe i Tres me 7 oe oe a -_ I fi: I Bradley Lake Project Management Committee Friday,Feb.17 @ 10:00 am. **PLEASE WRITE LEGIBLY** NAME ORGANIZATION KIRK Gri\BSa)RENCE Bruna Can hed.AEALarc4"5\oaenver.HEA 'Bolo Dewy HEA SUA WLU HOWOMDYL ACCUL-TypeBra,Ayo.|c i st AGo! Be ly Dr er Cagen Norge wee 1MhSOKAS$OU you Mun GarageBroadswere Aol'Ve 2M -wwnacker Waldonerar.sh bee Le Y,y Crjetiat Enkvist Gerd Alan Owens Bu nie Oman TLS pareh Russ Thornton "Brian Wick ay Buck _m is)ile Gary low wy (ean a lbsan Shecti Highws CéF -ehgneRzAemployeesTerWeldster,Valene Leavrt,TennchoVaddane,\Le he Conwar Kuele Wxerton , BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE First Second First Segond Firs'Secondy First SecondZLeon'|.NG 2BPMC2/17/17 22 ABZ,Sr"vy aX U Ov"OM ks v IL® Roll Call Agenda Minutes NHA BudgetRollcallfromtoptobottomendingwithChair Yes No No Yes \No Yes /No Yes No pod RR yo iN)a Homer Electric Association QeaMatanuska Electric Association City of Seward Alaska Energy Authority Municipal Light &Power Chugach Electric Association VNAAAANINNDNDNGolden Valley Electric Association att Setathon SE bls Pe First Second First Second First Second First Second First Second MatedeeTwEK tame PERManitees 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 €°.. Phos eg Ta aan? Next Meeting:PERE Ec ATG MT Rika Bang Bt Raat dae Rare a Soa Sate EE cen alin atte ens Be eet ced wlanOe aime The eat Tg TL SL adie fa etal FO aed sn eats WaBbc eeeetbeneah Droft BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Alaska Energy Authority,Anchorage,Alaska _ December 14,2016 1.CALL TO ORDER Chair Borgeson called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 9:55 a.m. 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 [MLP]);Brad Janorschke (Homer Electric Association [HEA]);and John Foutz (Seward). 3.PUBLIC ROLL CALL Bryan Carey,Jocelyn Garner,Melissa St.Denis,Kelli Veech,Kirk Warren,Teri Webster,Brandi White (AEA);Dave Gillespie (ARCTEC);Brian Bjorkquist (Attorney General's Office [AGO]); Brian Hickey,Mark Johnson,Burke Wick (CEA);Emily Hutchinson (phone),Larry Jorgensen, Alan Owens,Bob Day (HEA);Gary Kuhn,David Pease (MEA);Kirk Gibson (Mcdowell Rackner Gibson PC);Anthony Scott,Jeff Warner (MLP);Gary Dixon (Swalling &Associates);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. Izzo. The motion passed unanimously. 6.APPROVAL OF PRIOR MINUTES -October 19 and October 31,2016 Mr.Lamb noted the agenda incorrectly reflects the minutes are dated October 27,and should be corrected for the record as October 31.There was no objection to the date correction. MOTION:Mr.Janorschke made a motion to approve the minutes of October 19 and October 31,2016.Motion seconded by Mr.Izzo. The motion passed unanimously. 7.NEW BUSINESS BPMC Minutes 12/14/16 Page 1 of 5 A.Election of Officers Mr.Izzo nominated the existing slate of officers for reelection;Chair Borgeson,Vice-Chair Thibert,and Secretary/Treasurer Lamb.There were no objections. MOTION:Mr.Janorschke made a motion to elect the existing slate of officers;Chair Borgeson,Vice-Chair Thibert,and Secretary/Treasurer Lamb.Motion seconded by Mr. Foutz. A roll call was taken,and the motion passed unanimously. B.FY16 Audit and Refund Mr.Gary Dixon of Swalling &Associates presented the unmodified Independent Auditor's Report on the special purpose financial statements of the Operating Fund and Revenue Fund. Mr.Dixon reviewed the 2016 budget,actual,and variance numbers.The analysis included statements of assets and liabilities,statements of revenues and expenses,notes to financial statements,statements of cash flow,and statements of expenses.Mr.Dixon discussed the auditor's responsibilities over the audited special-purpose financial statements.There were no changes to accounting principles,no difficulties during the audit,and no changes to AEA's provided information.The only suggestion noted was the retainage obligations should be accounted as a payable from the R&C Fund. Chair Borgeson expressed appreciation to Mr.Dixon for his diligent work completing the audit, and to HEA and Mr.Owens for the great financial performance. MOTION:Mr.Janorschke made a motion to accept the FY16 Audited Financial Statements and approve a refund to the utilities of $2,120,374,broken out as $1,064,413 from the O&M Fund and $1,055,961 from the R&C Fund.Motion seconded by Mr.Foutz. A roll call was taken,and the motion passed unanimously. Chair Borgeson expressed appreciation to Ms.Garner and AEA staff for their diligent work during the audit process.Mr.Lamb expressed his pride in the AEA staff for their efforts. C.Battle Creek Project Update Mr.Carey reviewed the Battle Creek Project update data sheet provided to members.He noted the scheduled call with FERC Dam Safety on December 13th went well and an additional meeting is scheduled in January.Mr.Carey informed no comments were received on the DNR published Notice of Water Rights Application and the rights are expected to be issued in January.No issues are expected regarding the land lease amendment with DNR. Mr.Carey outlined the 2017 schedule.The final cost estimate is slated for February.Final plans and specs are to be reviewed by FERC Dam Safety in March.The financing discussions among the utilities regarding agreements and modifications need to move forward in parallel to the final design specifications.Bidding could occur as soon as June.A short list of qualified contractors would participate in the site visit and submit their bids by late September or October. The contract is scheduled to be awarded in October. Chair Borgeson suggested a planning session in January to discuss financing options and the effects of project participation and non-participation by the utilities. BPMC Minutes 12/14/16 Page 2 of 5 D.Notice for O&M Agreement Mr.Gibson informed that during the June 15th,2016 meeting,the Committee extended the time for termination of the O&M Agreement between AEA and Homer for six months,and extended the end date of the termination period for six months.Those extension dates expire December 30,2016.Mr.Gibson provided a draft amendment if the Committee decides to extend the agreement again.Mr.Gibson noted AEA expressed concerns regarding the process of a new request for proposal (RFP).Mr.Lamb informed AEA is obligated to follow and address nondelegable duties under the Bond and Power Sales Agreement.This includes ensuring the project is operating at the lowest reasonable cost and in an efficient,economical manner. MOTION:Mr.Johnston made a motion to provide notice to Homer Electric Association of the termination of the contract within two years,and to begin the process of an RFP to find an operator that would operate the project properly in an efficient and economical manner at the lowest reasonable cost to the purchasers.Motion seconded by Mr.Foutz. Mr.Lamb cautioned about rushing the RFP process.He believes it is important the RFP provide an all-inclusive scope of the project with input from utilities and AEA. Mr.Bjorkquist requested HEA,on the record,confirm support of the direction of the Committee to approve the motion.Mr.Janorschke stated HEA agrees to allowing the RFP process to occur and shares the opinion there are no assurances a bid will come in lower than the current costs.Mr.Janorschke believes one of the agreements,AS 42.05,narrows the qualifications of the operator to one of the Committee participants.Mr.Bjorkquist does not believe Mr. Janorschke's comments and interpretations are accurate.Mr.Bjorkquist also believes it is highly unlikely a non-Committee member operator could offer a lower bid. Mr.Izzo expressed support for the motion as a prudent business practice.He believes HEA has provided excellent work for the project. Mr.Carey requested the utilities provide representatives to work with him regarding construction of the RFP language with regard to qualifications and specific duties to be included.Chair Borgeson informed a committee will be assigned to fulfill his request. Chair Borgeson expressed his comfort in HEA's performance.He expressed support for the RFP as a prudent and due diligent practice.He believes the RFP will provide a great learning opportunity to understand what it takes to operate the facility,and will lead to better decisions. Aroll call was taken,and the motion failed,with Mr.Lamb voting against. Mr.Gibson informed the affirmative vote of four members with greater than 51%and the affirmative vote of AEA is required for the motion to pass because it is for the maintenance and operation of the project. Mr.Johnston inquired as to AEA's objection to the motion.He informed the two year's notice is required to be given by the end of December,even if HEA remains the operator.Mr.Lamb requested a revote on the motion.He did not realize a no-vote from AEA would automatically fail the motion.Mr.Lamb noted the Committee previously sourced analysis of HEA's operations and the report came back favorable.He is in favor of HEA continuing operations and is BPMC Minutes 12/14/16 Page 3 of 5 cognizant of the concerns of the employees currently operating the project.Chair Borgeson allowed Mr.Lamb to reconsider his vote on the motion. MOTION:Mr.Johnston made a motion to provide notice to Homer Electric Association of the termination of the contract within two years,and to begin the process of an RFP to find an operator that would operate the project properly in an efficient and economical manner at the lowest reasonable cost to the purchasers.Motion seconded by Mr.Foutz. A roll call was taken,and the motion passed unanimously. E.FERC Federal Land Fees Mr.Carey provided the report on the FERC Federal land fees.He explained BPMC and the Alaska Group's attorney Van Ness Feldman (VNF)appealed FERC's 2016 fees and petitioned for rulemaking to change the land fee rules for Alaska.FERC denied the appeal of the 2016 fees.FERC invited the Alaska Group to further pursue the petition.VNF recommends the Alaska Group further pursue the petition to change the land fee rules for Alaska.VNF has exhausted the initial budget for this effort.Mr.Carey requested the Committee increase the VNF budget item by $5,000 to amply cover the over-budgeted amount due to VNF and to pursue the FERC petition at an estimated cost of $4,000. MOTION:Mr.Johnston made a motion to approve the additional payment of up to $5,000 for legal counsel addressing the issues regarding the FERC Federal land fees.Motion seconded by Mr.Foutz. A roll call was taken,and the motion passed unanimously. Chair Borgeson expressed his appreciation to Mr.Carey for his work. 8.COMMITTEE REPORTS Ms.Garner informed the first quarter financial report is included in the member packets.There were no questions. 9.OPERATOR REPORT Mr.Owens submitted the Operator Report.There were no questions. Chair Borgeson expressed appreciation to Mr.Owens and the project staff. 10.COMMITTEE ASSIGNMENTS Chair Borgeson requested each utility and AEA assign a representative by December 22,2016, to form the Battle Creek Project Finance Committee.The Finance Committee will then be tasked with starting discussions with AEA regarding Battle Creek financing. Chair Borgeson requested each utility and AEA assign a representative by January 31,2017,to form the Operator Procurement Advisory Committee.Any utility who intends to submit a bid for the RFP must provide notice to the Committee and will not be specifically part of the Advisory Committee to mitigate any conflicts of interest.Access to the utilities'personnel is available as necessary. BPMC Minutes 12/14/16 Page 4 of 5 11.MEMBERS COMMENTS Mr.Foutz wished everyone a merry Christmas and happy New Year. Mr.Janorschke wished everyone a happy New Year. Mr.Izzo wished everyone a merry Christmas and happy New Year. Mr.Johnston echoed the good holiday wishes. Mr.Thibert wished everyone happy holidays.Mr.Thibert specifically expressed the fact of going out to bid does not mean the Committee does not support the current team at the project. He noted the Committee supports the team and wanted to work together to allay any concerns the team may have. Chair Borgeson expressed appreciation to all in attendance for their work this year.He looks forward to next year and wished happy holidays to all. 12.|NEXT MEETING DATE -TBD The next meeting date is to be determined for a date in February. 13.ADJOURNMENT There being no further business for the committee,the meeting adjourned at 11:00 a.m. BY: Cory Borgeson,Chair Attest: Michael Lamb Alaska Energy Authority,Secretary BPMC Minutes 12/14/16 Page 5 of 5 CHECKLIST FOR BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETINGS Meeting Date/Time: Task CONFIRMED !DATE 1.|Identify possible dates -Call GVEA first to get available dates of the Chairman,CoryBorgeson(call his Exec Assistant,Susan 907-458-5721).Meeting is usually 2 hours long. 2.|Check dates for Bryan Carey and the board room before calling other utilities for dates.KirkGibsonisnotavailablethe4"Thursday of each month.Ideally the last two weeks of the month.Make sure it's not a state holiday.Need five for quorum. 3.|Once date/time is set,send email "SAVE THE DATE”to all Committee members,in Outlook Contacts "BPMC'with meeting date/time/location. 4.|Secure meeting room for use (block out 60 minutes prior to meeting to allow for set-up time) 5.|One week prior to the meeting draft the agenda.Ask Cory,Homer Electric and Bryan foritems.Draft Agenda and send final to Cory to approve. 6.|After agenda is approved post it on the AEA website under Upcoming Events. 7.|Post to the State of Alaska's Online Notice System 5 business days prior to the meeting. Attach agenda. 8.|Gather documents from members.Due date is two days prior to the meeting. 9.|Email packet to members including all attachments (teleconference information/agenda/draft of previous meeting minutes/motions/general handouts)(SEND IN PDF FORMAT!) 10.}Print 10 full packet of information and bring to the meeting for the committee members, attorneys and your copy.Set out tent cards. 11.|For handouts print out 15 agendas and 10 copies of other items.No need to copy the prior minutes for the public. 12.|MEETING DAY-Put sign in sheet on end of the board room table and lay out the handouts next to it. 13.|ALSO BRING TO THE MEETING:State Calendar,List of Reps and Minutes in final form from the last meeting for Chair's signature if they are approved. 14.|Sign in on the phone 5 minutes prior. 15.)Accutype will be present but also record from our system. 16.|Following the meeting:Make sure you disconnect the phone.Stop recording.Have Chair and Bryan sign approved minutes. 17.|Take the disc from the recording out of the system and download recording and place in O:drive and also in BPMC meeting folder 18.|Send a pdf of the signed minutes to the committee members.