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HomeMy WebLinkAboutBPMC January 25, 2019BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Offices of Chugach Electric,Anchorage,Alaska January 25,2019 ORG. 1.CALL TO ORDER Chair Borgeson called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 1:03 p.m.A quorum was established. 2.ROLL CALL FOR COMMITTEE MEMBERS Cory Borgeson (Golden Valley Electric Association [GVEA]);Bryan Carey (Alaska Energy Authority [AEA]);Lee Thibert (Chugach Electric Association [CEA]);Tony Izzo (Matanuska Electric Association [MEA]);Mark Johnston (Anchorage Municipal Light &Power [ML&P]); John Foutz (City of Seward)(arrived late);and Brad Janorschke (Homer Electric Association [HEA]). 3.PUBLIC ROLL CALL Jocelyn Garner (phone)(AEA),Kirk Warren,Teri Webster,(AEA);Amy Fenerty (Aldrich CPAs &Advisors);Sherri Highers (phone),Russell Thornton,Burke Wick (CEA);Ron Rabinovich (phone)(Energy Engineering);Leo Quiachon (phone),Bob Day,Larry Jorgenson (phone)(HEA);Kirk Gibson (McDowell Rackner Gibson,PC);David Pease,Tony Zellers (MEA);Jeff Warner,Molly Morrison (phone)(ML&P);Bernie Smith (Public);and Ladonna Lindley (Accu-Type Depositions). 4.PUBLIC COMMENTS None. 5.AGENDA APPROVAL The agenda was approved as presented. Motion passed unanimously. 6.PRIOR MINUTES -December 7,2018 The Minutes of December 7,2018 were approved as presented. BPMC Minutes 1/25/19 Page 1 of 5 7.NEW BUSINESS A.Bradley O&M Agreement Update Chair Borgeson requested Mr.Gibson provide the Bradley O&M agreement update.Mr.Gibson informed he was overly optimistic about the timing of the settlement at the last meeting.He continues to be optimistic the few remaining issues can be resolved within the next week or so. Mr.Gibson will notify the BMPC if an impasse occurs beyond that time period. Chair Borgeson noted a special telephonic meeting will be scheduled to approve the final settlement.Members were encouraged to engage their legal staff and managers to ensure a timely completion of the agreement. ' Mr.Carey reported one of the procurement issues involves the decision to either award under an RFP,or award under a sole-source procurement.The decision will be made at the next meeting to either approve a new O&M contract or extend the current O&M contract. Mr.Janorschke brought two specific issues to the BPMC's attention.The first one regards the proposed language the BPMC Chair approves guests and visitors.He noted there has never been a problem in the past and does not feel the language is necessary.The second issue regards the language of more than two,but less than four employees.The operational question arises about safety meetings,foul weather,maintenance projects,trainings,and emergencies.The proposed language,as he understands it,will result in the addition of another employee.It is important the BPMC is aware of the proposal and resultant budget repercussions. Mr.Gibson informed the issues are being addressed and he believes they can be resolved ina reasonable way that does not confine the operator and provides comfort to the utilities. Mr.Thibert is aware of the proposals and agreed the BPMC should not be micromanaging. B.Battle Creek Project Update Mr.Carey provided the Battle Creek project update.The most recent meeting with the contractor was last week and the next is scheduled on February 7.The main contracting staff will arrive in mid-March and will restart the camp with two barges of equipment.The total contracting staff is expected to double this season.Drilling,excavation,and blasting will begin in April,and four drills are anticipated to be active by May.The hope is to be at the diversion site by mid-May.The final completion date of August 2020 is still possible.The project cost is closely tracking its estimations. Mr.Carey noted an inquiry arose regarding AEA's management of labor with the project.Mr. Carey,Kirk Warren,and Betsy McGregor are the only three people at AEA who may direct charge onto the bonds.In 2018,they totaled 662 hours on Battle Creek.There were 11 trips taken and they shared 50/50 with Bradley Lake planned work. BPMC Minutes 1/25/19 Page 2 of 5 Ron Rabinovich of Energy Engineering advised the spring schedule is aggressive.He noted the weather during the first few weeks may cause delays. Mr.Thibert asked for an explanation of the timing requirements for contractor change-order submittals.Mr.Carey stated the change orders submitted to-date have used price estimation until pricing can be secured.The change orders have been a small percentage of the project. Some of the change orders have been positive,in terms of reducing the cost of the project.The contractor will submit a claim for change order amounts at the end of the project. Chair Borgeson asked if the pipe has been ordered.Mr.Carey understands Orion (contractor)is visiting a manufacturer in Vancouver this week and expects an order soon.No submittals have been produced.The pipe pricing risk and pipe delivery risk are borne by the contractor.The contractor is aware of the Alaska tide schedule and pipe delivery options.Additional information will be discussed at the next contractor meeting. Chair Borgeson asked if it is possible to see any claims from the contractor in the third year that BPMC prevented the completion in two seasons,and thus,the contractor seeks mobilization from BPMC.Mr.Carey informed that possibility exists and detailed notes have been maintained regarding the process,if a dispute is necessary. C.Unit 2 Generator Update Bob Day of HEA reviewed the provided Generator #2 Report.The overhaul of Unit 2 has begun.Canyon Hydro will arrive on January 28 and proceed with pulling the rotor.The schedule within the report is vague and is dependent upon the findings as the work continues. Mr.Day showed pictures of the disassembly and explained the process and mechanics. Coincidently,one of the insulators was damaged completely.The timing of this repair is fortunate and will mitigate any of the potential problems a damaged insulator could have caused. Mr.Day believes the bolt was too loose and did not have the proper torque,either from the long- term installation or a poor connection.All the inspection covers were removed and no other damage was found.Unit 1 will be inspected for insulator damage as soon as possible.Asa result of this damage,a request for a thermal camera in next year's budget will be submitted. 8.COMMITTEE ASIGNMENTS A.Budget Subcommittee -Budget to Actual Jocelyn Garner of AEA reviewed the provided Budget to Actual Expense Report dated July 1, 2018 through November 30,2018.The FY18 portion of the land use refund is $35,289.The total refund was approximately $86,000,and the remainder will be included in the FY19 report. The FY18 legal fees were higher than budgeted.Ms.Garner suggested the Committee discuss raising the budgeted legal fee amount for FY19. Chair Borgeson asked if the current generator work will be reflected in the R&C fund disbursements.Ms.Garner agreed and explained the actual expense amounts will come from the R&C fund and will be listed on the report.There will be no budgeted amount line item for the BPMC Minutes 1/25/19 Page 3 of 5 work since the expenditures were approved at a BPMC meeting and not through the budgeting process. Chair Borgeson requested verification the report shows the amount due to the R&C Fund is down by about $2 million and is reflected in the amount that has to be paid.Ms.Garner agreed those numbers reflect the status as of November.The refund was not returned until December. Mr.Thibert inquired as to the plan regarding the Emerson operating system upgrade.Mr.Day informed the Emerson replacement was originally scheduled for February,but has been postponed until April or May because of the current generator outage. B.Operators Report Mr.Day reviewed the provided Operator Report and provided updates,where appropriate.The situation in January has been normal and there is nothing significant to report.The equipment shed is built.There are only a few items remaining to install when the weather permits.The contracts with ABB and Canyon Hydro have been completed.The scheduled barge load has been postponed due to weather.The tire mounting and balance machine is on the barge.The fish water control automation is on-hold to evaluate and understand the recent data discrepancies. Mr.Day showeda picture of the new equipment shed,the new ambulance,and the new loader. Chair Borgeson noted GVEA was unable to have Bradley power dispatched this week.He inquired as to the reasons for the issues.Mr.Day noted the transmission line is out of service and will come back online January 27.It will be removed from service again on February 1,for the CEA outage through April 1.Mr.Day reported the lake levels are about 15 to 20 feet above average and are expected to increase with the warm,36-degree temperatures.Mr.Day commented on the issues when Bradley is running at high levels and the potential risk for the peninsula to go black if Bradley stumbles. Burke Wick,CEA,commented Bradley is currently 19 feet below spill level.Historically,at this time of year,there have not been inflows significant enough for spill to be a consideration. Mr.Day showed a graphic of the lake level chart depicting the historical average levels.Chair Borgeson requested the additional pictures be provided to BPMC members. C.O&D Report Jeff Warner,ML&P,discussed the provided O&D Report,including the scheduled outages previously mentioned.Mr.Warner encouraged participants to use as much water as operationally possible because of the high lake levels,currently at 1,139 feet.The FY20 Budget discussions have begun.Several repair and replacement items were identified from the 2016 D. Hittle Report and will be brought before the O&D for consideration.Elections for the O&D Chair and Vice-Chair will occur at the next meeting. BPMC Minutes 1/25/19 Page 4 of 5 Mr.Izzo requested perspective on additional inflows once Battle Creek diversion is active.Mr. Warner believes the inflows from Battle Creek during this same time of the year will be minimal. The inflows from Battle Creek will occur primarily during the summertime. MEMBERS COMMENTS Mr.Izzo expressed appreciation to HEA and staff onsite.He feels the pictures are very helpful. Mr.Thibert echoed appreciation to HEA,and commended Mr.Warner for his report. Mr.Carey advised AEA has a new Executive Director Curtis Thayer,who begins on February 4. Chair Borgeson informed BPMC of Mr.Day's request to have a student guest onsite for two weeks as part of an internship.The student will bring their own food and there will be no associated costs.There was no objection to the request. 10...NEXT MEETING DATE-March 22,2019 A pending telephonic meeting to approve the O&M Agreement will occur before the next regular meeting. 11.ADJOURNMENT There being no further business for the committee,the meeting adjourned at 1:57 p.m. BY:a a(Jrciae -Cory Borgeson,Chair Attest: Alaska Energy Authority,Secretary BPMC Minutes 1/25/19 Page 5 of 5 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Offices of Chugach Electric,Anchorage,Alaska January 25,2019 \ 1 CALL TO ORDER Chair Borgeson called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 1:03 p.m.A quorum was established. 2.ROLL CALL FOR COMMITTEE MEMBERS Cory Borgeson (Golden Valley Electric Association [GVEA]);Bryan Carey (Alaska Energy Authority [AEA]);Lee Thibert (Chugach Electric Association [CEA]);Tony Izzo (Matanuska Electric Association [MEA]);Mark Johnston (Anchorage Municipal Light &Power [ML&P}); John Foutz (City of Seward)(arrived late);and Brad Janorschke (Homer Electric Association (HEA]). 3:PUBLIC ROLL CALL Jocelyn Garner (phone)(AEA),Kirk Warren,Teri Webster,(AEA);Amy Fenerty (Aldrich CPAs &Advisors);Sherri Highers (phone),Russell Thornton,Burke Wick (CEA);Ron Rabinovich (phone)(Energy Engineering);Leo Quiachon (phone),Bob Day,Larry Jorgenson (phone)(HEA);Kirk Gibson (McDowell Rackner Gibson,PC);David Pease,Tony Zellers (MEA);Jeff Warner,Molly Morrison (phone)(ML&P);Bernie Smith (Public);and Ladonna Lindley (Accu-Type Depositions). 4,PUBLIC COMMENTS None. 5.AGENDA APPROVAL The agenda was approved as presented. Motion passed unanimously. 6.PRIOR MINUTES -December 7,2018 The Minutes of December 7,2018 were approved as presented. BPMC Minutes 1/25/19 Page 1 of 5 7.NEW BUSINESS A.Bradley O&M Agreement Update Chair Borgeson requested Mr.Gibson provide the Bradley O&M agreement update.Mr.Gibson informed he was overly optimistic about the timing of the settlement at the last meeting.He continues to be optimistic the few remaining issues can be resolved within the next week or so. Mr.Gibson will notify the BMPC if an impasse occurs beyond that time period. Chair Borgeson noted a special telephonic meeting will be scheduled to approve the final settlement.Members were encouraged to engage their legal staff and managers to ensure a timely completion of the agreement. i ..Mr.Carey reported one of the procurement issues involves the decision to either award under an RFP,or award under a sole-source procurement.The decision will be made at the next meeting to either approve a new O&M contract or extend the current O&M contract. Mr.Janorschke brought two specific issues to the BPMC's attention.The first one regards the proposed language the BPMC Chair approves guests and visitors.He noted there has never been a problem in the past and does not feel the language is necessary.The second issue regards the language of more than two,but less than four employees.The operational question arises about safety meetings,foul weather,maintenance projects,trainings,and emergencies.The proposed language,as he understands it,will result in the addition of another employee.It is important the BPMC is aware of the proposal and resultant budget repercussions. Mr.Gibson informed the issues are being addressed and he believes they can be resolved in a reasonable way that does not confine the operator and provides comfort to the utilities. Mr.Thibert is aware of the proposals and agreed the BPMC should not be micromanaging. B.Battle Creek Project Update Mr.Carey provided the Battle Creek project update.The most recent meeting with the contractor was last week and the next is scheduled on February 7.The main contracting staff will arrive in mid-March and will restart the camp with two barges of equipment.The total contracting staff is expected to double this season.Drilling,excavation,and blasting will begin in April,and four drills are anticipated to be active by May.The hope is to be at the diversion site by mid-May.The final completion date of August 2020 is still possible.The project cost is closely tracking its estimations. Mr.Carey noted an inquiry arose regarding AEA's management of labor with the project.Mr. Carey,Kirk Warren,and Betsy McGregor are the only three people at AEA who may direct charge onto the bonds.In 2018,they totaled 662 hours on Battle Creek.There were 11 trips taken and they shared 50/50 with Bradley Lake planned work. BPMC Minutes 1/25/19 Page 2 of 5 Ron Rabinovich of Energy Engineering advised the spring schedule is aggressive.He noted the weather during the first few weeks may cause delays. Mr.Thibert asked for an explanation of the timing requirements for contractor change-order submittals.Mr.Carey stated the change orders submitted to-date have used price estimation until pricing can be secured.The change orders have been a small percentage of the project. Some of the change orders have been positive,in terms of reducing the cost of the project.The contractor will submit a claim for change order amounts at the end of the project. Chair Borgeson asked if the pipe has been ordered.Mr.Carey understands Orion (contractor)is visiting a manufacturer in Vancouver this week and expects an order soon.No submittals have been produced.The pipe pricing risk and pipe delivery risk are borne by the contractor.The contractor is aware of the Alaska tide schedule and pipe delivery options.Additional information will be discussed at the next contractor meeting. Chair Borgeson asked if it is possible to see any claims from the contractor in the third year that BPMC prevented the completion in two seasons,and thus,the contractor seeks mobilization from BPMC.Mr,Carey informed that possibility exists and detailed notes have been maintained regarding the process,if a dispute is necessary. C.Unit 2 Generator Update Bob Day of HEA reviewed the provided Generator #2 Report.The overhaul of Unit 2 has begun.Canyon Hydro will arrive on January 28 and proceed with pulling the rotor.The schedule within the report is vague and is dependent upon the findings as the work continues. Mr.Day showed pictures of the disassembly and explained the process and mechanics. Coincidently,one of the insulators was damaged completely.The timing of this repair is fortunate and will mitigate any of the potential problems a damaged insulator could have caused. Mr.Day believes the bolt was too loose and did not have the proper torque,either from the long- term installation or a poor connection.All the inspection covers were removed and no other damage was found.Unit 1 will be inspected for insulator damage as soon as possible.Asa result of this damage,a request for a thermal camera in next year's budget will be submitted. 8.COMMITTEE ASIGNMENTS A.Budget Subcommittee -Budget to Actual Jocelyn Garner of AEA reviewed the provided Budget to Actual Expense Report dated July 1, 2018 through November 30,2018.The FY18 portion of the land use refund is $35,289.The total refund was approximately $86,000,and the remainder will be included in the FY19 report. The FY18 legal fees were higher than budgeted.Ms.Garner suggested the Committee discuss raising the budgeted legal fee amount for FY19. Chair Borgeson asked if the current generator work will be reflected in the R&C fund disbursements.Ms.Garner agreed and explained the actual expense amounts will come from the R&C fund and will be listed on the report..There will be no budgeted amount line item for the BPMC Minutes 1/25/19 Page 3 of 5 work since the expenditures were approved at a BPMC meeting and not through the budgeting process. Chair Borgeson requested verification the report shows the amount due to the R&C Fund is down by about $2 million and is reflected in the amount that has to be paid.Ms.Garner agreed those numbers reflect the status as of November.The refund was not returned until December. Mr.Thibert inquired as to the plan regarding the Emerson operating system upgrade.Mr.Day informed the Emerson replacement was originally scheduled for February,but has been postponed until April or May because of the current generator outage. B.Operators Report Mr.Day reviewed the provided Operator Report and provided updates,where appropriate.The situation in January has been normal and there is nothing significant to report.The equipment shed is built.There are only a few items remaining to install when the weather permits.The contracts with ABB and Canyon Hydro have been completed.The scheduled barge load has been postponed due to weather.The tire mounting and balance machine is on the barge.The fish water control automation is on-hold to evaluate and understand the recent data discrepancies. Mr.Day showeda picture of the new equipment shed,the new ambulance,and the new loader. Chair Borgeson noted GVEA was unable to have Bradley power dispatched this week.He inquired as to the reasons for the issues.Mr.Day noted the transmission line is out of service and will come back online January 27.It will be removed from service again on February 1,for the CEA outage through April 1.Mr.Day reported the lake levels are about 15 to 20 feet above average and are expected to increase with the warm,36-degree temperatures.Mr.Day commented on the issues when Bradley is running at high levels and the potential risk for the peninsula to go black if Bradley stumbles. Burke Wick,CEA,commented Bradley is currently 19 feet below spill level.Historically,at this time of year,there have not been inflows significant enough for spill to be a consideration. Mr.Day showed a graphic of the lake level chart depicting the historical average levels.Chair Borgeson requested the additional pictures be provided to BPMC members. Cc.O&D Report Jeff Warner,ML&P,discussed the provided O&D Report,including the scheduled outages previously mentioned.Mr.Warner encouraged participants to use as much water asoperationallypossiblebecauseofthehighlakelevels,currently at 1,139 feet.The FY20 Budgetdiscussionshavebegun.Several repair and replacement items were identified from the 2016 D. Hittle Report and will be brought before the O&D for consideration.Elections for the O&D Chair and Vice-Chair will occur at the next meeting. BPMC Minutes 1/25/19 Page 4 of 5 Mr.Izzo requested perspective on additional inflows once Battle Creek diversion is active.Mr. Warner believes the inflows from Battle Creek during this same time of the year will be minimal. The inflows from Battle Creek will occur primarily during the summertime. MEMBERS COMMENTS Mr.Izzo expressed appreciation to HEA and staff onsite.He feels the pictures are very helpful. Mr.Thibert echoed appreciation to HEA,and commended Mr.Warner for his report. Mr.Carey advised AEA has a new Executive Director Curtis Thayer,who begins on February 4. Chair Borgeson informed BPMC of Mr.Day's request to have a student guest onsite for two weeks as part of an internship.The student will bring their own food and there will be no associated costs.There was no objection to the request. 10.NEXT MEETING DATE-March 22,2019 A pending telephonic meeting to approve the O&M Agreement will occur before the next regular meeting. 11,ADJOURNMENT There being no further business for the committee,the meeting adjourned at 1:57 p.m. BY:a li,RogueCoryBorgeson,Chair west ZL £LAAlaskaEnergyAuthority,say BPMC Minutes 1/25/19 Page 5 of 5 10. 11. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) REGULAR MEETING Friday,January 25,2019 Alaska Energy Authority Board room 813 W Northern Lights Blvd,Anchorage 1-888-585-9008 -Conference room code 467-050-126 AGENDA CALL TO ORDER ROLL CALL FOR COMMITTEE MEMBERS PUBLIC ROLL CALL PUBLIC COMMENTS AGENDA APPROVAL PRIOR MINUTES --Dec.7,2018 NEW BUSINESS A.Bradley O&M Agreement update B.Battle Creek Project update C.Unit 2 Generator update COMMITTEE ASSIGNMENTS A.Budget Subcommittee -Budget to Actual B.Operators Report C.O&D Report MEMBERS COMMENTS NEXT MEETING DATE -March 22,2019 ADJOURNMENT Kirk Gibson AEA HEA HEA Jeff Warner BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Alaska Energy Authority,Anchorage,Alaska December 7,2018 1.CALL TO ORDER Chair Borgeson called the regular meeting of the Bradley Lake Hydroelectric ProjectManagementCommitteetoorderat1:04 p.m.A full quorum was established. 2.ROLL CALL FOR COMMITTEE MEMBERS Cory Borgeson (Golden Valley Electric Association [GVEA]);Bryan Carey (Alaska Energy Authority [AEA]);Lee Thibert (Chugach Electric Association [CEA]);Tony Izzo (Matanuska Electric Association [MEA]);Jeff Warner (Anchorage Municipal Light &Power [ML&P]);John Foutz (City of Seward);and Brad Janorschke (Homer Electric Association [HEA)). 3.PUBLIC ROLL CALL & Jocelyn Garner,Kirk Warren,Teri Webster,Brandi White (AEA);Mark Johnson (ARCTEC)); Michelle Barnett,Amy Fenerty,Lia Patton (Aldrich CPAs &Advisors);Brian Hickey,Sherri Highers,Josh Resnick,Burke Wick (CEA);Stefan Saldanha (Department of Law),Ron Woolf(GVEA);Bob Day,Emily Hutchinson,Larry Jorgenson (HEA);Kirk Gibson (McDowell Rackner Gibson,PC);David Pease,Tony Zellers (MEA);Molly Morrison (ML&P);TW Patch,Bernie Smith (Public);and Sunny Morrison (AccurType Depositions).°-4.PUBLIC COMMENTS i S.None.os 5.AG ENDA APPROVAL .MOTION:Mr.Janorschke made a motion toaapprove the agenda.Motion seconded byMr.Thibert. Motion passed unanimously. 6.PRIOR MINUTES -October 25,2018 MOTION:Mr.Thibert made a motion to approve the Minutes of October 25,2018.Motion seconded by Mr.Janorschke. Mr.Carey corrected the spelling to Jocelyn Garner throughout the minutes. The motion to approve the Minutes of October 25,2018,with the spelling corrections, passed unanimously. 7.NEW BUSINESS A.FY18 BPMC Audited Financial Statement and Refunds Motion to Approve DRAFT BPMC Minutes 12/7/18 Page |of 4 Chair Borgeson introduced representatives from Aldrich CPAs &Advisors,Amy Fenerty, Michelle Barnett and Lia Patton.Ms.Fenerty reviewed the results of the audit provided to Committee members.There were no significant findings to report and an unmodified clean opinion was issued for the audited financial statements.Ms.Fenerty expressed appreciation to staff for their cooperation during the audit process.Ms.Fenerty highlighted the refund sections in the financial statements. MOTION:Mr.Janorschke made a motion the Bradley Lake Project Management Committee accept the Fiscal Year 2018 Audited Financial Statements and approve a refund of $1,445,453 ($1,004,466 O&M and $440,987 R&C)to the Utilities and a refund of $635,702 to the Battle Creek Participating Utilities.Motion seconded by Mr.Foutz. Motion passed unanimously. B.Bradley O&M Agreement Update..SMChairBorgesonintroducedKirkGibsonofMcDowellRacknerGibson,PC to provide the updateontheBradleyO&M Agreement.Mr.Gibson noted much progress has been achieved withHEAinnarrowingthecurrentunresolvedissues.:A summary of the changes as result of the discussions has been sent to HEA Counsel.Mr.Gibson expressed optimism theissues couldabefinalizedwithinthenexttwoweeks.a ae |an oo,a ae |7 8ChairBorgesonadvisediftheissuesareresolvedwithinthenextfewweeks,a Specialtelephonicmeetingmaybescheduled{fo approve the AgreementC.Bradley Federal LandsTransfer Update to the State of Alaska of approximately 5,500 acres.AEA paid the current lands bill andconcurrentlyfiledanappeal.The appeal was denied by Federal Energy RegulatoryCommission(FERC)in September.AEA filed an appeal to the FERC denial determination and requested a rehearing.AEA submitted an application for amendment to Bradley changing theamountoflandinthelicense.In November;FERC issued an order amending the license tochangetheamountoflandwithinBradleyandrevisedtheannualcharges.All future invoices from FERC for the land fee will be zero.FERC determined in early December,a refund for land fees is due to AEA for $86,558 and is anticipated to be paid within the next month.Mr.Carey explained the federal lands transfer saves the Bradley project land charges of approximately $200,000 to $300,000 annually.He noted another benefit is the Bradley relicensing process in about 10 years will no longer contain a mandatory conditioning authority. Chair Borgeson congratulated Mr.Carey on his good work.He expressed appreciation to the State for selection of the lands for the benefit of the Bradley project. D.Battle Creek Project Update Mr.Carey provided the Battle Creek project update.He informed the contractor worked until the weather became prohibitive in late November.The work is planned to restart in April.The project is slightly behind schedule,but it is still possible to meet the final completion date of August 2020.The project is currently on budget.The contractor has not been submitting their pay applications in a timely manner.Mr.Carey discussed the project photos provided to the Committee. E.Unit 2 Generator Repairs DRAFT BPMC Minutes 12/7/18 ;Page 2 of 4 Bob Day of HEA reviewed the provided discussion paper regarding the proposed repair to the Bradley Unit 2 generator.The rotor needs to be removed and a thorough inspection and cleaning of the unit needs to occur.The proposal includes utilization of a mechanical contractor to remove the rotor and an electrical contractor to clean the rotor,stator,and address the corona problems.All work would be conducted onsite.If the repair is conducted during the scheduled February transmission line outage,there will be very little impact to the Northern utilities.Mr.Day informed the expedited timeframe would mean the procurement of the wedging material would be issued as a sole source no-bid contract.If the contract is committed next week,the wedging material can be received by February 1.The mechanical contractor and electrical contractor would be chosen based on an informal bid process and the O&D's review and recommendation of proposals.The project's estimated budget ranges from$500,000 to $950,000.eo, Chair Borgeson clarified the repairs will be funded from the R&C fund and the amount will bespreadoverfouryearsofplantoperations.Ms.Garner agreed.Mr.Izzo inquired if this repair expense could be capitalized and ted over a longer term.Ms.Garner noted the payback over four years for the high estimate of $950,000is $238,000 each year.She believes the R&C fund is currently the best funding mechanism and suggested the Finance Committee review options.Chair Borgeson tnoted he will give an assignment to theFinanceCommittee...ws£XMOTION:Mr.Thibert made a motion to recommend4 approval by the BPMC of HEA'sproposaltoexpediterepairsonUnit2generator,to include a sole source contract for thewedgemanufacturing,and best value procurement processes for mechanical and generator repair,labor and parts,with costs not to exceed $950,000.Motion secondedbyMr.Izzo.fo a \NOS LO Motion passed unanimously.:-\,8.COMMITTEE ASIGNMENTS -Chair Borgeson assigned the Finance Committee to analyze the potential process of financinglargercapitalprojectsandlargerrepairprojects...The assignment is not a priority and theFinanceCommitteeiistoreporttothefullCommitteeattheirdiscretion.-A.Budget Subcommittee -Budget to Actual Ms.Garner reviewed the provided Expense Report dated July 1,2018 through August 31,2018. There were no questions.Chair Borgeson expressed appreciation to Ms.Garner for the updated information.. B.|Operators Report Mr.Day gave an overview of the provided Operator Report and pictures therein.Substantial inspection was conducted after the November 30"earthquake and no damage was found.Both units stayed online and continued to operate. C.O&D Report Mr.Warner discussed the provided O&D Report.There were no questions. 9.MEMBERS COMMENTS Members wished all happy holidays,Merry Christmas,and Happy New Year. DRAFT BPMC Minutes 12/7/18 Page 3 of 4 Mr.Janorschke expressed appreciation to staff for their efforts regarding the financial audit and for focus on the Unit 2 work. Mr.Warner thanked staff for their efforts and expressed appreciation to all the utilities for working well together on operational issues during the earthquake. Chair Borgeson echoed the appreciation for the outstanding audited financial report. 10.NEXT MEETING DATE Chair Borgeson noted the 2019 meeting dates have not yet been scheduled.He advised the Committee to stand ready in January to conduct a meeting tocomplete and approve the O&MAgreement.Chair Borgeson requested regular meetings |be scheduled every other month.TheMarchmeetingwillincludeapprovalofthebudget. 11.ADJOURNMENT BY: Cory Borgeson,Chair Attest: Bryan CareyAlaskaEnergy Authoiy,Secretary,\4A2 DRAFT BPMC Minutes 12/7/18 Page 4 of 4 West Fork Upper Battle Creek Update January 25,2019 Events: Contractor and AEA held a meeting January 17 to start coordination for 2019. Regular scheduled meetings will resume and a longer work session will occur in February. Schedule: Contractor working on detailed schedule.Currently planning on equipment and drills arriving at Bradley mid-March.Should be working at outfall and Wall 2 by early April.Once additional drills arrive in April likely,go to double shifting drilling. Goal to gain access to diversion site by early May so that cofferdam can be constructed and West Fork temporarily diverted around planned diversion dam site. Unlikely to have substantial completion of project in 2019. Budget: Contractor on budget.AEA is awaiting information from the contractor for several Change Orders. Lower access road very close to estimated.Upper access road will have greater rock excavation and less Wall than estimated. Generator #2 report January 25,2019 Work on the generator is slated to begin January 21°.The Kenai to Anchorage transmission outage began January 20".That outage is due to HEA making repairs on a section of the transmission line that will have the Kenai Anchorage transmission line out from January 20°to January 29".CEA will then have the Kenai to Anchorage transmission line out for rebuilding a section of line near Summit.The Summit outage is scheduled to run from February 1 to April 1%.The line contractor on the Summit job has indicated an opinion that they will be able to complete this transmission outage early,we will see. Bradley staff is going to apply LOTO to Unit 2 on January 21*and begin to remove the covers and instrumentation. We have a small barge bringing supplies and materials to the plant from Homer on January 25".The plant has been obtaining materials in preparation for the outage. Canyon Hydro is expected to arrive January 28"or 29"to begin work on pulling the rotor.The contract has been signed with Canyon Hydro. ABB is scheduled to arrive about February 11 (depends on Canyon Hydro's progress)and complete the generator work which is estimated to last about 15 days.We are still working on completing the contract with ABB. Canyon Hydro will then return to the site (TBD)and replace the rotor in the machine. Bradley staff will then reassemble the covers and instrumentation and if all goes as planned,we expect to have the machine available for return to service about March 15",however the unit will not be run (except for testing)until the transmission outage is complete. Bradley has a signed contract with Five Star oilfield services to provide a cook for the contracting staff for the duration of the outage. 07 HA Sng Char iS W nw Pl Rca Pcl wana TH Agden ia TaeAH)QB CEA Hope Summt 115 kV Line Section Rebuild wate OR dys FiQttd Men 41 ;Sn esadsanquinnlcanowal BY QQ CEA Daves Chk Summit 115 KY Ling -$y 82-2 X-Arm Replace [Date Tent}omen (OSdays |Wod2619 «=Wed 2619)F |}We)OAH 0F4 Mave Crook SUP Ronin Svctom Conte linnwarice IMalae Tony |RT Fa an AT Wah OT eye Bradley Lake Budget to Actual Expense Report 07/01/18 to 11/30/18 Page 1 of 9 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Schedule A-1 Expenses for the period 07/01/18 through 11/30/18 FY18 FY18 FY19 FY19CAPITALPURCHASESNOTFUNDEDBYR&C FUND BUDGET|ACTUALS |BUDGET ACTUALS Replace/Automate Fish Water Valve Actuators 225,000 361,430 -364 Equipment storage shed (unheated bus barn)100,000 67,539 -- 1 ton Flatbed with Plow 65,000 57,016 -- Battle Creek Bridge Repair Refurbishment (2)182,000 -|200,000 - Mobil Crane 40 to 50 tons (used)100,000 88,875 -- Replace Michigan Loader 350,000 263,306 -- Upgrade Crews Quarters and Residents Kitchen 165,000 1,850 -- Replace 1988 Suburban Ambulance 65,000 59,430 -5,350 1/2 ton Pick up truck 35,000 34,693 -- Replace High Bay Lighting in Power Plant 20,000 19,920 -- Turbine Nozzle Repair --60,000 - Tire Machine --12,500 - Total Non R&C Capital Purchases _1,307,000 954,059 272,500 5,714 Page 2 of 9 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS &MAINTENANCE SCHEDULE B BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2018 THROUGH 11/30/2018 FY 19 FY 18 BUDGET % FY19 Approved 07/01/2018 -(Over)Under FY18 Approved Budget 11/30/2018 HEA Actual CEA Actual AEA Actual Total Actual |Budget to Date Budget FY18 Actual Summary by expense type Labor &Benefits 1,572,497 655,206 635,916 11,838 :647,754 7,482 1,889,814 1,578,236 Travel 33,950 14,146 16,353 :*16,353 (2,207}76,950 16,114 Training 49,300 20,542 4,882 ::4,882 15,660 49,300 14,046 Contractual 1,033,216 430,506 190,762 :89,852 280,615 149,891 841,062 659,773 lies &Materials 204,345 85,142 76,194 670 :76,864 8,278 183,345 152,799 Other Costs 69,818 29,091 14,873 12,302 (35,289)(8,114)37,205 387,818 276,370 Equipment,Furniture and Machinery 7,000 2,917 2,110 :-2,110 808 7,000 25,562 Maintenance Projects ::::::::3,381 Administrative Costs 1,233,537 $13,974 7,197 :430,452 437,649 76,325 1,158,098 1,259,441 Indirect Costs $83,803 243,251 -:-:243,251 +- 4,787,466 1,994,775 948,288 24,810 485,015 1,458,112 536,663 4,593,387 3,985,722 FERC 535 -Operation Supervision &Engineering Operations Sup/Eng Bradley Lake Operating Labor &Benefits 189,074 78,781 109,746 :-109,746 (30,965)265,587 262,431 Travel 10,450 4,354 6,014 :*6,014 {1,660}10,450 2,271 Training 9,300 3,875 1,533 :-1,533 2,342 9,300 3,452 Contractual 1,000 417 155 :-155 262 1,000 121 Supplies &Materials 4,000 1,667 1,419 :-1,419 248 4,000 3,210 Indirect Costs 77,849 32,437 -::-32,437 .: Bradley Lake Operating Total 291,673 121,531 118,866 ::118,866 2,665 290,337 271,485 FERC 535 -Operation Supervision &Engineering Total 291,673 121,531 118,866 ->118,866 2,665 290,337 271,485 FERC 537 -Hydraulic Expenses Hydraulic Expenses Bradley Lake Operating Labor &Benefits 88,714 36,964 31,937 -.31,937 5,027 94,453 69,032 Contractual 2,000 833 1,896 --1,896 {1,063)2,000 - Supplies &Materials 2,000 833 1,362 -:1,362 {529)2,000 976 Indirect Costs 41,515 17,298 -.>-17,298 -a Bradley Lake Operating Total 134,229 $8,928 35,196 :-35,196 20,732 98,453 70,008 FERC 537 -Hydraulic Expenses Total 134,229 $5,928 35,196 -.35,196 20,732 98,453 70,008 FERC 538 -Electric Expenses Electric Expenses Bradley Lake Operating Labor &Benefits 224,811 93,671 90,907 -:90,907 2,764 232,294 202,969 Travel 7,000 2,917 2,159 ::2,159 758 7,000 6,877 Training 25,000 10,417 1,828 :-1,828 8,589 25,000 231 Contractual 2,000 833 ---.833 2,000 1,400 Supplies &Materiats 9,732 4,055 3,058 --3,058 997 9,732 5,513 Indirect Costs 102,222 42,593 *-:.42,593 :> Bradley Lake Operating Total 370,765 154,486 97,951 -:97,951 56,535 276,026 216,990 FERC 538 -Electric Expenses Total 370,765 154,486 97,951 *.97,951 56,535 276,026 216,990 FERC 539 -Misc.Hy Power Misc Hydro Power Exp Bradley Lake Operating Labor &Benefits 168,044 70,018 68,289 :-68,289 1,729 179,530 172,689 Training 15,000 6,250 1,522 -:1,522 4,728 15,000 10,363 Contractual 287,525 119,802 58,045 *id 58,045 61,757 287,525 212,841 Supplies &Materials 17,900 7,458 8,064 ::8,064 (606)17,900 18,271 Indirect Costs 41,515 17,298 ::::17,298 :: Bradley Lake Operating Tota!529,984 220,826 135,920 -:135,920 84,906 499,955 414,164 BRADLEY CIRCUITS/RADIO TO BERNICE LK Other Costs 35,695 14,873 14,873 .-14,873 {0}35,695 35,696 BRADLEY CIRCUITS/RADIO TO BERNICE LX Total 35,695 14,873 14,873 -:14,873 {0}35,695 35,696 BRADLEY CIRCUITS BERNICE LK TO ANCH Other Costs 29,773 12,405 :12,302 :12,302 103 29,773 29,728 BRADLEY CIRCUITS BERNICE LK TO ANCH Total 29,773 12,405 *12,302 -12,302 103 29,773 29,728 FERC 539 -Misc,Hydraulic Power Generation Expenses Total 595,452 248,104 150,753 12,302 -163,095 85,009 565,423 479,587 FERC 540 -Rents FERC Land Use Fee Bradley Lake Operating Other Costs ::-:{35,289}(35,289)35,289 318,000 202,079 Bradley Lake Operating Total ----(35,289)(35,289)35,289 318,000 202,079 FERC 540 -Rents Total .--*(35,289)(35,289)35,289 318,000 202,079 FERC 541 -Maintenance Supervision &Engineering Maint Supervision/Eng Bradley Lake Operating Labor &Benefits 195,817 81,590 107,374 ::107,374 (25,784)272,586 263,101 Indirect Costs 77,849 32,437 ----32,437 :- Bradley Lake Operating Total 273,666 114,027 107,374 :*107,374 6,653 272,586 263,101 FERC 541 -Maintenance Supervision &Engineering Total 273,666 114,027 107,374 --107,374 6,653 272,586 263,101 3 of9 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS &MAINTENANCE SCHEDULE B BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2018 THROUGH 11/30/2018 FY 19 FY 18 BUDGET % FY19 Approved 07/01/2018 -(Over)Under FY18 Approved Budget 11/30/2018 HEA Actual CEA Actual AEA Actual Total Actual |Budget to Date Budget FY18 Actual FERC 542 -Maintenance of Structures Maintenance of Structures Bradley Lake Operating Labor &Benefits 85,438 35,599 31,719 .:31,719 3,880 94,453 70,197 Contractual 10,000 4,167 -::-4,167 10,000 - Supplies &Materials 53,713 22,380 21,100 id :21,100 1,280 53,713 57,919 Equipment,Furniture and Machinery 7,000 2,917 2,110 --2,110 808 7,000 8,513 Maintenance Projects --:.:-a :2,581 Indirect Costs 37,066 15,444 :-:-15,444 :: Bradiey Lake Operating Total 193,217 80,507 $4,929 --$4,929 25,578 165,166 139,209 BRADLEY UPGRADE CREWS QTRS/RESIDENCE KITCHEN Contractual 165,000 68,750 a .--68,750 :- BRADLEY UPGRADE CREWS QTRS/RESIDENCE KITCHEN Tota 165,000 68,750 -:-.68,750 -* FERC 542 -Maintenance of Structures Total 358,217 149,257 54,929 ::$4,929 94,328 165,166 129,209 FERC 543 -Maintenance of Reservoirs,Dams &Waterways Maint Res,Oams,WWays Bradley Lake Operating Labor &Benefits 45,552 18,980 4,666 :-4,666 14,314 $0,610 9,314 Contractual 6,500 2,708 7,600 :-7,600 {4,892)6,500 : Indirect Costs 19,932 8,305 ::::8,305 :bd Bradley Lake Operating Total 71,984 29,993 12,266 :-12,266 17,727 57,110 9,314 BRADLEY NUKA REPAIR Contractual 15,000 6,250 -.:-6,250 15,000 : BRADLEY NUKA REPAIR Total 15,000 6,250 :-:-6,250 15,000 - BRADLEY POWER TUNNEL MAINT (Dam) Contractual 15,000 6,250 --:-6,250 15,000 - BRADLEY POWER TUNNEL MAINT (Dam)Total 15,000 6,250 *--:6,250 15,000 - FERC $43 -Maintenance of Reservoirs,Dams &Waterways Tot 101,984 42,493 12,266 :.12,266 30,227 87,110 9,314 FERC $44 -Maintenance of Electric Plant Maintenance of Elec Plant Bradiey Lake Operating Labor &Benefits 342,265 142,610 133,370 :>-133,370 9,240 379,102 291,662 Travel 4,500 1,875 :'--1,875 4,500 : Contractual 70,000 29,167 67,099 :-67,099 (37,932)70,000 $9,793 Supplies &Materials 20,000 8,333 11,971 :ba 11,971 {3,638}20,000 12,743 Indirect Costs 148,789 61,995 :-bd :61,995 :: Bradley Lake Operating Total 585,554 243,980 212,440 :-212,440 31,540 473,602 364,198 BRADLEY REPLACE LIGHTING IN POWER PLANT Supplies &Materials 30,000 12,500 -:::12,500 -: BRADLEY REPLACE LIGHTING IN POWER PLANT Total 30,000 12,500 i :-:12,500 -: FERC 544 -Maintenance of Efectric Plant Total 615,554 256,480 212,440 ::212,440 44,040 473,602 364,198 FERC S45 -Mai of Misc.Hydraulic Plant Maint of Misc Hydr Plant Bradley Lake Operating Labor &Benefits 85,438 35,599 32,479 -:32,479 3,120 94,453 86,833 Contractual 3,900 1,625 ----1,625 3,900 2,009 Supplies &Materials 35,000 14,583 18,183 >a 18,183 (3,600)35,000 49,502 indirect Costs 37,066 15,444 ---:15,444 :: Bradley Lake Operating Totat 161,404 67,251 50,662 *-50,662 16,589 133,353 138,344 BRADLEY FISH WATER DSGN/MIDDLE FORK SHACK IMPR Supplies &Materials >-:---:-1,345 BRADLEY FISH WATER DSGN/MIDDLE FORK SHACK IMPR Tq -:::->::1,345 FERC 545 -Maintenance of Misc.Hydraulic Plant Total 161,404 67,251 50,662 .bd 50,662 16,589 133,353 139,689 40f9 ALASKA ENERGY AUTHORITY BUDGET TO ACTUAL EXPENSES BRADLEY LAKE OPERATIONS &MAINTENANCE SCHEDULE B FOR THE PERIOD 07/01/2018 THROUGH 11/30/2018 Fy 19 FY 18 BUDGET % FY19 Approved 07/01/2018 -(Over)Under FY18 Approved Budget 11/30/2018 HEA Actual CEA Actual AEA Actual Total Actual |Gudget to Date Budget FY18 Actual FERC 556 -System Control &Load Dispatching System Cnti &Load Disp Bradley Lake Operating Labor &Benefits 21,506 8,961 16,366 :-16,366 {7,405)20,618 34,363 Contractual 53,000 22,083 42,888 :42,888 (20,805)$3,000 35,618 Supplies &Materials 6,000 2,500 613 ::613 1,887 6,000 642 Equipment,Furniture and Machinery ::::-:-'16,254 Bradley Lake Operating Total 80,506 33,544 $9,866 *-$9,866 (26,322)79,618 86,878 BRADLEY EMERSON ANTIVIRUS UPGRADE Contractual 40,000 16,667 ----16,667 -. BRADLEY EMERSON ANTIVIRUS UPGRADE Total 40,000 16,667 -:--16,667 ** Snow Measurement Bradley Lake Operating Contractual 12,000 5,000 ::10,000 10,000 (5,000)10,000 10,000 Bradley Lake Operating Total 12,000 5,000 ::10,000 10,000 (5,000)10,000 10,000 Seismic Service Bradley Lake Operating Contractual 62,000 25,833 ::28,280 28,280 {2,447}62,000 61,285 Bradley Lake Operating Total 62,000 25,833 --28,280 28,280 {2,447}62,000 61,285 Streamguaging Serv Bradley Lake Operating Contractual 206,291 85,955 :.51,573 51,573 34,382 213,137 213,137 Bradley Lake Operating Total 206,291 85,955 ::51,573 51,573 34,382 213,137 213,137 Permits Bradley Lake Operating Other Costs 350 146 ::°:146 350 250 Bradley Lake Operating Total 350 146 :-::146 350 250 FERC 556 -System Control &Load Dispatching Total 401,147 167,145 59,866 -89,852 149,719 17,426 365,105 371,550 FERC S62 -Station Expenses Station Expenses Bradley Lake Operating Labor &Benefits 94,718 39,466 4,366 11,838 >16,203 23,263 123,726 112,738 Travel 2,000 833 >---833 6,000 1,701 Contractual 32,000 13,333 13,077 ::13,077 256 4,000 7,440 Supplies &Materials 21,000 8,750 10,424 670 id 11,094 (2,344)16,000 2,678 Other Costs 4,000 1,667 :*>-1,667 4,000 8,618 Equipment,Furniture and Machinery -::-:-:-795 Maintenance Projects -:---:-:800 Bradley Lake Operating Tota!153,718 64,049 27,867 12,508 :40,375 23,674 153,726 134,770 FERC 562 -Station Expenses Total 153,718 64,049 27,867 12,508 °40,375 23,674 153,726 134,770 FERC $71 -Maintenance of Overhead Lines Maint of OH Lines Bradley Lake Operating Labor &Benefits 31,120 12,967 4,699 ::4,699 8,268 82,402 2,907 Travel 10,000 4,167 8,180 :-8,180 (4,013)49,000 5,265 Contractual 50,000 20,833 -::.20,833 86,000 56,046 Supplies &Materials 5,000 2,083 ::--2,083 19,000 : Bradley Lake Operating Total 96,120 40,050 12,879 --12,879 27,171 236,402 64,218 BRADLEY MARKER BALL REPLACEMENT Contractual -::::::.83 BRADLEY MARKER BALL REPLACEMENT Total ---::*>83 FERC 571 -Maintenance of Overhead Lines Total 96,120 40,050 12,879 --12,879 27,171 236,402 64,301 5o0f9 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS &MAINTENANCE SCHEDULE 8 BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2018 THROUGH 11/30/2018 FY 19 FY 18 BUDGET % FY19 Approved 07/01/2018 -(Over)Under FY18 Approved Budget 11/30/2018 HEA Actual CEA Actual AEA Actual Total Actual |Budget to Date Budget FY18 Actual FERC 920 &930 -Administrative Expense AEA Bradley Fixed Admin Fees Bradley Lake Operating Administrative Costs 200,000 83,333 :.83,333 83,333 (0)200,000 200,000 Bradley Lake Operating Total 200,000 83,333 --83,333 83,333 {0}200,000 200,000 Operating Committee Exp-Audit Bradley Lake Operating Administrative Costs 16,500 6,875 -:-i 6,875 16,800 16,800 Bradley Lake Operating Total 16,500 6,875 :::+6,875 16,800 16,800 Operating Committee Exp-tegal Bradley Lake Operating Administrative Costs 25,000 10,417 --72,418 72,418 (62,001)25,000 115,610 Bradley Lake Operating Total 25,000 10,417 --72,418 72,418 (62,001)25,000 115,610 Operat Committee Exp-Arbitrage Bradley Lake Operating Administrative Costs 2,935 1,223 --..1,223 3,380 2,535 Bradley Lake Operating Total 2,935 1,223 :-::1,223 3,380 2,535 Trust &Account Fees Bradley Lake Operating Administrative Costs 11,918 4,966 .a 5,959 5,959 (993)11,918 11,918 Bradley Lake Operating Total 11,918 4,966 --5,959 5,959 (993)11,918 11,918 Misc Admin Bradley Lake Operating Administrative Costs 10,350 4313 --::4,313 10,000 10,350 Bradley Lake Operating Total 10,350 4,313 --::4,313 10,000 10,350 FERC 920 &930 -Administrative Expense Total 266,703 111,127 --161,710 161,710 (50,583)267,098 357,213 FERC 924 &925 -Insurance Premiums insurance Premiums Bradley Lake Operating Administrative Costs 656,834 273,681 7,197 :242,121 249,318 24,363 581,000 624,705 Bradley Lake Operating Total 656,834 273,681 7,197 -242,121 249,318 24,363 581,000 624,705 FERC 924 &925 -Insurance Premiums Total 656,834 273,681 7,197 :242,121 249,318 24,363 $81,000 624,705 FERC 928 -U vc FERC Admin Fees Bradley Lake Operating Administrative Costs 185,000 77,083 --:-77,083 185,000 176,523 Bradley Lake Operating Total 185,000 77,083 ---:77,083 185,000 176,523 FERC Related Prof Services BRADLEY CONTRACTUAL ENGINEER-FERC LICENSE ISSUES Administrative Costs 125,000 52,083 --26,620 26,620 25,463 125,000 100,999 BRADLEY CONTRACTUAL ENGINEER-FERC LICENSE ISSUES Tq 125,000 $2,083 --26,620 26,620 25,463 125,000 100,999 FERC 928 -Regul:¥Ci Exp Total 310,000 129,166 :*26,620 26,620 102,546 310,000 277,522 Total Bradley Lake Budget 4,787,466 1,994,775 948,288 24,810 485,015 1,458,112 536,663 4,593,387 3,985,722 6of9 BRADLEY LAKE R&C FUND DISBURSEMENTS AND REPAYMENTS SCHEDULE D Expenses for the Period 7/1/18 through 11/30/18 Actual Actual Actual Actual Budget @ 6/30/18 TO REPAY @11/30/18 TO REPAY FY19 Description Expense 6/30/2018 Expense @6/30/19 R&C FUND PROJECTS Governor 0.00 4,052,070.14 0.00 4,052,070.14 0.00 Replace RFLS 0.00 251,092.69 0.00 251,092.69 0.00 Replace Runners 0.00 1,946,732.79 0.00 1,946,732.79 0.00 Replace cable from dam to power house 0.00 2,321,922.94 0.00 2,321,922.94 0.00 Replace power system stabilizer 0.00 619,205.10 0.00 619,205.10 0.00 Replace two RTUs 0.00 86,905.27 0.00 86,905.27 0.00 Culvert Repairs 0.00 675,966.79 0.00 675,966.79 0.00 Tower Repair for Jack Frost Heaves 0.00 887,596.62 0.00 887,596.62 0.00 Replace Plant and SCADA Controls 0.00 1,344,683.05 0.00 1,344,683.05 0.00 Vibration Monitoring System 0.00 490.00 0.00 490.00 0.00 Fire Alarm System Replacement 0.00 0.00 0.00 0.00 250,000.00 Battle Creek Diversion 0.00 1,170,000.00 0.00 1,170,000.00 0.00 Bradley Replace Electro-Mechanical Relays 0.00 1,277,197.06 0.00 1,277,197.06 0.00 Fishwater Screen Debris Removal 0.00 312,236.43 0.00 312,236.43 0.00 Turbine Nozzel Repair 0.00 1,428,861.07 0.00 1,428,861.07 0.00 SVC replacement Daves Creek |Soldotna 1,341,405.96 8,517,991.11 0.00 8,517,991.11 0.00 Equipment Storage Shed 0.00 0.00 443,464.19 443,464.19 500,000.00 Emerson Operating System Upgrade 0.00 0.00 124,533.00 124,533.00 700,000.00 1,341,405.96 |24,892,951.06 §67,997.19 I 25,460,948.25 1,450,000.00 Current Year R&C Repayment (2,793,306.00)(1,144,195.00) Adjust to balance to $5million 0,00 0.00 Interest in Fund Applied to Repayment (226,781.00)(52,362.33) Net Transfer from Revenue Fund (3,020,087 .00)(1,196,557.33) Cumulative Prior Years R&C Repayments (17,886,155.09)(20,465,255.55) Due Back to Utilities 440,986.54 (1,291,386.23) Adjust Due to R&C Actual 0.00 0.00 (17,445,168,55)(21,756,641.78) NET DUE TO R&C FUND 4,427,695.51 2,507,749.14 R&C FUND CASH FLOW PROJECTION Beginning Investment Balance 3,219,624.39 1,013,291.03 Disbursements-current year -Accrual (1,341,405.96)0.00 Disbursements-prior year accrued (2,737,351 .03)(241,980.93) Utilities'R&C Refund (1,147,663.37)0.00 Net other cash inflow(outfiow)0.00 0.00 Current year interest earnings 226,781.00 §2,362.33 Participants Contributions to R&C Fund 2,793,306.00 1,144,195.00 Ending Investment Balance 1,013,291.03 1,967,867.43 Accrued Due to Utilities (440,986.54)850,399.69 Accrued R&C vendor Payable at Year End 0.00 (326.016 26) PROJECTED NET DUE +ENDING INVESTMENT BALANCE §,000,000.00 §,000,000.00 REPAYMENT AMOUNT $3,330,802.80 x 25%yr 1 |32%yr 2 |25%yr 3 [18%yr4 3rd yr 832,700.70 4th 599,544.50 599,544.50 $5,644,193.08 x 25%all 4 years 2nd yr 1,411,048.27 3rd 1,411,048,27 1,411,048,27 $1,341,405.96 x 25%all 4 years 1st yr 335,351.49 2nd 335,351.49 372,974.87 $567,997.19 x 25%all 4 years ist 141,999.30 362,500.00 2,579,100.46 2,487,943.56 2,746 ,067.64 Page 7 of 9 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Battle Creek Capital Purchases Schedule E Expenses for the period 07/01/18 through 11/30/18 FY18 FY19 Battle Creek Capital Purchases Amended FY18 Appoved FY19 Budget Actuals Budget Actuals Used 2007 Chevrolet Silverado ____ 8,800 8,800 __ Used 2006 Chevrolet Silverado 7,700 7,700 Total capital revenue fund purchases 16,500 16,500 - Page 8 of 9 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Battle Creek Administrative Costs Schedule F Expenses for the period 07/01/18 through 11/30/18 FY 19 FY18 FY19 BUDGET %FY18 Approved 07/01/2018 -(Over)Under Approved Budget 11/30/18 HEA Actual AEA Actual |Total Actual |Budget to Date Budget Total Actual Summary by expense type Administrative Costs 453,988 189,162 176,293 72,632 248,926 (59,764)43,800 137,456 453,988 189,162 176,293 72,632 248,926 (59,764)43,800 137,456 FERC 920 &930 -Administrative Expense Battle Creek Admin Fees Administrative Costs 176,193 73,414 7,222 70,000 77,222 (3,808)22,000 25,525 Battle Creek Admin Fees Total 176,193 73,414 7,222 70,000 77,222 (3,808}22,000 25,525 Operating Committee Exp-Owners Representative Administrative Costs 254,245 105,935 169,071 .169,071 (63,136)-89,196 Operating Committee Exp-Owners Representative Total 254,245 105,935 169,071 -169,071 (63,136)-89,196 Operating Committee Exp-Legal Administrative Costs 15,000 6,250 :2,508 2,508 3,742 15,000 17,082 Operating Committee Exp-Legal Total 15,000 6,250 :2,508 2,508 3,742 15,000 17,082 Operat Committee Exp-Arbitrage Administrative Costs 2,000 833 ::-833 2,000 2,180 Operat Committee Exp-Arbitrage Total 2,000 833 .:-833 2,000 2,180 Trust &Account Fees Administrative Costs 6,550 2,729 83 83 2,646 4,300 1,197 Trust &Account Fees Total 6,550 2,729 -83 83 2,646 4,300 1,197 Operat Committee Exp-Other Administrative Costs ---42 42 (42)500 2,276 Operat Committee Exp-Other Total ---42 42 (42}500 2,276 FERC 920 &930 -Administrative Expense Total 453,988 189,162 176,293 72,632 248,926 (59,764)43,800 137,456 Total 453,988 189,162 176,293 72,632 248,926 (59,764)43,800 137,456 Page 9 of 9 Bradley Lake Operator Report Unit Statistics: O&D January 25,2019 as of 12/31/2018 Generation Unit 1 (MWhrs)Unit 2 (MWhrs)Total (MWhrs) December 2018 22,600 16,740 39,340 Hydraulics Avg.Lake Level (ft.)Usage (ac ft.)Fish water (CFS) December 2018 1172.3 40,302 77.16 AVG Lake Level -1160.6 as of January 21,2019 Capital Projects: 1}Equipment shed is doing its job -the equipment storage shed is doing a good job protecting and housing our equipment.We have some small items to finish, anti-avalanche stakes for the roof are yet to be installed but we had too much snow to do so. 2)Started contract discussion with ABB and Canyon Hydro -After approval by the O&D documents were exchanged with the two recommended providers but forward progress was slowed by the holidays.We have a contract with Canyon Hydro but ABB is proving to be a little more challenging in order to reach consensus on language. 3)Barge -Bradley will be bringing a smaller barge over January 25"with materials and supplies to support the Generator 2 outage. 4)Fish Water Control Automation -Basically on hold,we are attempting to get better information on the release vs level as what we are observing doesn't match the schedule.This is the valve selection schedule we have used in the past.We are also finding that at higher lake levels flows per pipe are slightly lower on some manifolds (777).We do not yet understand this.We continue to gather data as the lake level shifts. 5)Unit 2 Generator -By the time of this report we will be ready to begin removal of the main rotor.We have been actively working on organizing the overhaul on Unit 2.We have been gathering smaller items and equipment that we might need. Bradley Lake Operator Report Page 1 Operations,Maintenance,and Inspections: 1) 2) 3) 4) Operations-During the months of December and January operations were normal.We spent a great deal of time removing snow.The 24 week of January was bitter cold. December Unit availability -Unit 1 98.39,Unit 2 100%.Capacity factor for December for Unit 1 was 48.22%and for Unit 2 35.71%.|believe unit 1 was shut down by Dispatch for 12 hours during a Railbelt wide disturbance on December 27,2018. Safety meeting -Meeting were held on December 17 and January 14".An orientation meeting will be held for the contractors as they come on site. Tire Machine -The new tire mounting and balance machine has arrived and will be coming over to Bradley on the Barge on January 25"in conjunction with the generator repair). The equipment shed is protecting Bradley's rolling stock (Photo was taken on a very icy day) Bradley Lake Operator Report Page 2 Bradley's new ambulance ra nner Mads: ne oneeT ley's new loader at work *” ¥-,ta ew ay ei Bradley Lake Operator Report Page 3 Bradley O&D Report to the BPMC Friday January 25,2019 1.Scheduled Outages a.HEA's Sterling to Quartz 115kV transmission line outage began January 21 and is scheduled for completion on January 29. HEA suggested Bradley Unit 2 outage begin January 21 to prepare the unit for the January 30 arrival of the mechanical contractor.The O&D determined there are significant advantages for all Bradley Participants by taking the unit out of service earlier than originally planned. Chugach has scheduled a 60 day 115 kV tie outage between Hope and Summit beginning February 1 and ending April 1,2019. 2.Water Report a.Given the current projected inflows,participants projected use and various planned outages,we will end the water year at a lake level of 1139.This lake level represents a significant amount of pond,participants are encouraged to use as much water as operationally possible. As of the December 2018 water report,the year to date projected inflows were 333,616 ac-ft.Actual inflows for the same time period were 455,353 ac-ft.This represents an additional 121,737 ac-ft of inflows above predicted.For the remaining January to May water year the projected inflows are 36,930 ac-ft.These numbers represent gross inflows and do not include water needed for fish water. 3.Draft FY20 Budget a.HEA provided several repair and replacement items that were identified in the 2016 D.Hittle and Associates Report.HEA will review the items for potential inclusion in the FY20 draft budget and provide additional feedback and recommendations at the next O&D meeting. 4.Next O&D meeting scheduled for February 1,2019 a.FY20 budget b.Election of new Chair and Vice-Chair Bradley Lake Project Management Committee -Alaska Online Public Notices Page 1 of 1 STATUS:Active Bradley Lake Project Management Committee ALASKA ENERGY AUTHORITY (AEA) Bradley Lake Project Management Committee Notice is hereby given that the Bradley Lake Project Management Committee will hold a regular meeting on Friday,January 25,2019 at 1:00 p.m.For additional information contact Teri Webster at 907-771-3074. This meeting will be conducted by electronic media pursuant to AS 44.62.310 at the following location: Alaska Energy Authority Board Conference Room,813 West Northern Lights Boulevard,Anchorage,Alaska; A teleconference line has been set up for those unable to attend in person.Dial 1-888-585-9008,Enter Code 467-050-126#. 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.pdf Commerce,Community andDepartment:Economic Development Revision History Category:Public Notices Created 1/22/2019 10:47:37 AM by tawebster Sub-Category: Location(s):Statewide Project/Regulation #: Publish Date:1/22/2019 Archive Date:1/26/2019 Events/Deadlines: https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=192727 1/22/2019 10. 11. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) REGULAR MEETING Friday,January 25,2019 1:00 P.M. Alaska Energy Authority Board room 813 W Northern Lights Blvd,Anchorage 1-888-585-9008 -Conference room code 467-050-126 AGENDA CALL TO ORDER ROLL CALL FOR COMMITTEE MEMBERS PUBLIC ROLL CALL PUBLIC COMMENTS AGENDA APPROVAL PRIOR MINUTES --Dec.7,2018 NEW BUSINESS A.Bradley O&M Agreement update Kirk Gibson B.Battle Creek Project update AEA C.Unit 2 Generator update HEA COMMITTEE ASSIGNMENTS A.Budget Subcommittee -Budget to Actual B.Operators Report HEA C.O&D Report Jeff Warner MEMBERS COMMENTS NEXT MEETING DATE -March 22,2019 ADJOURNMENT Bradley Lake Project Management Committee Friday,January 25,2019 Regular Meeting **PLEASE WRITE LEGIBLY** NAME ORGANIZATION DRL CiBsya)Bere "MBG Lod Qn Aas Ondlery ACOH -THESPewyAnCahensREA Beam!SpA SUB LIE Kh Lipilt/AZA ory LENG LEA DOME ENF CE bvssed| Thote tan ch Gels Vy WeA 7 AKRACT WEADavid+eis BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE 'yFirstY/Second First Second\First Second First Second v.A.Ly.BPMC 1/25/19 OTs A Dee DO Ty DU VL nN | Roll Call Agenda Minutes Roll call from top to bottom ending with Chair Yes No Yes No Yes No Yes No Yes No !4 Matanuska Electric Association 4 \|\( Chugach Electric Association /-(\N ()N City of Seward Arivwed (ASP -J Y Municipal Light &Power WA Homer Electric Association vA Golden Valley Electric Association WA Alaska Energy Authority TA A sce walt neta nae Manas EEE .free Bee une dy ts ft 24 6 Stim anf SE eee a lane PS te Sake ne ot a ae ai ah San BS he Bn ah OEE tO Ta a cn an ie Sa iEEE Ih aman vee First Second First Second First Second First Second First Second Roll call from top to bottom ending with Chair Yes No Yes No Yes No Yes No Yes No Matanuska Electric Association Chugach Electric Association City of Seward Municipal Light &Power Homer Electric Association Golden Valley Electric Association Alaska Energy Authority Beta ts HE Bp nt tee tes Gas ANextMeeting:March 2 wea ee oe oe KurleG-only c Seas yssues .slb done w a Les weeds,Cory us]Species ph Meehox +p approve,prod --BPM &pproves guess |visors /+Z<A employees "MiICHO Kanag ;emegenctes 7 boll neek to hice,ona Jour o,2G-voor iRag thru thsLee-OGCLS Ww)Pek on both. Sched TB -AAC Avect Chace 'bryan,dirk cecasorally,Betsy (occad)CelozhorrdOVB.C.Trips 12 toate eomlomed ul Bradley,Worle Session 217 Aagcesswe echedute 1 start eorly SPlig (WucetheeChangeordor-con tontructor Wald ll end)”NN exact tb Pipe dined ?Mechog Ws week.-guessig No,Price.does Dotefhectuo CoClech.Timeffare Contractors ns.Codd be.log istic prablem te get to sre.TW guwg tb Bd yr-Cost us, al;ftFO6B(9%fBrspill Transmission thy -2,Ok owtagan Beetotteb-4(\ BL EP A Conmitee Comments _ATTENDANCE -BPMCMEETING,Jan 225COMMITTEEMEMBERS|ALTERNATEoryBorgeson,Chair a GVEA Aw Quiachon .| 7 aveThibert - ;|CEA|_Batke Wick -ee aSJradJanorschkeHEAABobDayaannCarey,Secretary/Treasurer_AEA OO oe/AsTony Izzo,Vice Chair .a MEA 7 /Tony Zellers _/(Mani Johnston NER YeffWarner Public Members COUNSELCEA|aHickey(CEA)t™*”:Kirk Gibson,McDowell Rackner&Gibson |PC |Mark Johnson(CEA)Stefan Saldanha,Dept of Law ay a S$'Sherri Higher (CEA)-_Paul Risse (CEA):AEA -|Brenda Applegate-Matt Clarkson (CEA)a -'KatieConway a --:_Josh Resnick (CEA)|AmyAdlerHEA_Rich Baldwin(HEA)-oe-pe:JocelynGardner 7"Alan Owens (HEA)|Brandi WhiteEmilyHutchinson(HEA)|Carmen Noble_gh WA Larry Jorgensen (HEA)./-WALWebster 7 Steve Canon (HEA)Tom Erickson'MLP 'Anna Henderson (MLP)|David Lockard-; pn 4Molly Morrison (MLP)-4 Kirk Warren oo GVEA ___Ron Woolf (GVEA)ae |Jessica Houstonoo.Pete Sarauer (GVEA)VeyMEAJimBrooks(MEA);BS BuzT David Pease (MEA)(gn.Amy Fone PldndhMattReisterer(MEA) |Eé Jenkins (MEA)BtPublicBernieSmith_Crystal Enkvist(APA)- if |Mel Hutchinson (APA)|TWRatch|)Eric Myers (American Transmission Co)|0.weRon Rebenitsch (Energy Engineering)i"