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--|: |Northern Intertie Project -Scheduler| eo oa Text2 Task Name Resources |Duration |©Start End Total Cost -:=7 x 1994 |1995 | .1996 1997 :. be ec an e y 5 . |:oe 1000.00 [Northern Intertie 230 kV 100.25 miles 810.00d|-Dec/01/83|__Feb/18/97|__$75,088,420.44 a __|pr__|__May _|_4wn__{_=,-__Aug_|__Sep_|__0a =-=e Jan__[{_Feb__[_Mar_{_#pr_|__Mey__|___iun =i_|___4vg_{_®ep__{__e oe Lon wee =pf Nar _{__4pr__{_Mey__{__in J]tg Sep Nv Te yan__|_Feb Maraens©)]1100.00__|Environmental Assess w/Scope 327.00 d|_Dec/01/93|_Mar/22/95 $160,306.28 TEE ZZZZZIZIZIZEEIZIIIZ ETI.LLL bo a _a = ZZEZIZZ LILI !"oe = Poe ces -Environmental RFP Haagenson 20.00 ¢ij -»Dec/01/93}Dec/30/93 $672.00 |aT ° '”mo Evaluate RFP Haagenson $.00d} Jan/10/94|-Jan/14/94 $583.33 Lal i IPG Approves Proposal Haagenson*1.004 Jan/25/94 Jan/25/94 $560.00 I :Notice-to-Proceed issued Haagenson,F 2.00 d|: Feb/02/94|Feb/03/94 $560.60 > :1100.01 Select Alt Routes Haagenson”,11.50 |Dec/01/93|-Dec/16/93 $2,971.60 at .1100.02 Select Substation Site Haagenson,V 65.00 d|-Jan/17/94 Apr/18/94)$3,231.43 Ley | , .1100.03 Select Energy Stor Sites Haagenson*,65.00 cd}Jan/17/94 Apr/18/94 $1,961:14 SS ; e .1100.07 Identify Prefered Routes Haagenson'*,6.00 3 Dec/16/93|-Dec/28/93 $4,080.00 | ",Project Administration (D&M)PM,(D!11.00 d|__Feb/07/94|_Feb/22/94 $1,523.22 , ry Notify Agencies (D&M)PM 10.00 d!Feb/07/94!Feb/18/94 0.00 a ||| | :oe Meet w/State &Fed Agencies (D&M)PM,Wy 1.00 cd}-Feb/22/94| Feb/22/94 Saee 18 ,I Northern Intertie Period and Cummulative Cost Curves ee *Se Review Existing Data (D&M)PM,{D:20.00 d/; Feb/04/94|__Mar/04/94 $5,724.00 sO boo,1100.11 Macro-Corridor Study (D&M)PM,(D.45.00d|.Feb/04/94|_Apr/08/94 $6,278.40 a $14,000,000.00 -. :1100.10 Prepare Project Alternatives (D&M)PM,(D.25.00d| Mar/28/94]-Apr/29/94 $5,542.00 0 rs ; . J 5 7 $80,000,000.00 ee a 1100.09 Publish Notice-of-intent Wyman 3.00 d|-May/0z/94|__May/04/94 $390.00 = .eases po CO 1100.05 Archeological Survey Archeologist 40.00 4 Jul/07/94|-Aug/31/94 $88,655.00 --$12,000,000.00 +a T $70,000,000.00 :1100.08 EA Draft Report.(D&M)PM,(D.86.00 d||May/24/94,_Sep/23/94 $19,645.65 :a c oe Board Approves Draft EA 0.00d|.Sep/23/94|Sep/23/94 $0.00 A 7 E os 1100.12 Hold Public Meetings Wyman,(D&N 5.004]Apr/11/94|-_Apr/15/94 $1,590.00 ] $10,090,000.00 ++$60,000,000.00 ro REA Reviews Public Comments 15.00 ¢Apr/20/94|May/10/84 $0.00 , , | (. ; 1100.13 Publish Notice-of-Scoping Mtg (D&M)Proj An 20.00 d|May/11/94|-Jun/0a/94 $2,475.00 :'Se fo +$50,000,000.00 |1100.14 Public Scoping Mtg Wyman,(D&N 600d)_Jun/og/e4|_Jun/16/94 $906.47]-_| $8,000,000.00 +" |Public Comments to REA (D&M)PM,(D-20.00d)-Jun/17/94| Jul/15/94 $2,775.00||.:Es J. ;REA Determines Final Scope 20.00d}-Aug/01/94}-Aug/26/94 $0.00 -E .=e /. +$40,000,000.00 |Revise Draft EA (D&M)Clerica 3.00 d|:.Aug/29/94)-Aug/31/94 $745.44 , |"6 $6,00,000.00 T / REA Reviews EA 60.00d|.Sep/o1/94!_Now29/94 $0.00 . .eee .F |Vain 7 $30,000,000.00 |:Submit Final EA to REA (D&M)PM,(D.5.00 d|_Dec/21/94|_-Dec/29/94 $9,436.00 ;_-oo , ;[bl or |REA Prepares EA &FONSI 20,00 d|.Dec/30/94)-Jan/27/95 $0.00 .,--$4,990,000.00 !.EPA Publishes EA in Fed Rec 2.000)Jan/30/95|_.Jan/31/95 $0.00 . . . ;: -+$20,000,000.00 30 Day Comment Period 30.00 d|_Feb/01/95|__Mar/15/95 $0.00 ) ,,ee oa a $2,000,000.00 +|Record of Decision 5.000!Marfi6/95| Mar/22/95 $0.00 . oe -_peeenees r 1 $.10,000,000.00 O 1100.04 Route Surveys DVG Wyman*46.00 d|_May/09/94 Jul/13/94 $201,843.00 fo Z ZZ ZA ep , --i-a-e I i|Mob/Demob Nortech 2.004)*May/09/94;-May/10/94 $14,700.00 :ry ten .$0.00 4 FSH Soom,|poi te oll il [|im Control/Radio link/Hardware Nortech ,206 5.00d|_May/11/34|_May/17/94 $29,000.00 mas z mOeIYTY TET ee bo bbb bb u ooo onnnn $0.00 eo DVG Data Acquisition 206 Helicopte 7.00d|May/18/94|_May/26/94 $74,970.00 -:SES PI SSS SSF SF SRSF SRS SSS SRS SSSSSIRES RSH GtsPost-Mission GPS Processing Nortech 8.00d|May/2a/e4|__Jun/02/94 $6,000.00 -cSOg53 SZLSQHEAZSSVQGAVC HG RFESOAD*OE OS;Digitizing Profiles Nortech 20.00 d Jun/03/94 Jun/30/84 $8,000.00 Ee a S 2 2c =5 °z &O 2 A 8s 2 =<s 5 °Z B fe)2 fas =2 S cas 5 °2 2 6 S A s 2 S i . Digitizing Attributes Nortech 20.00 d Jun/03/94 Jun/30/94 $8,000.00 eel |image Frame Links Nortech 20.00 d Jun/03/94;-Jun/30/94 $8,000.00 renee el|Plan/Profile Sheets Drawings,Wy 20.00d/Jun/15/94 Jul/13/94 $52,029.00 , O 1200.00 Energy Storage System §91.00d Dec/01/93 Apr/05/96 $24,044,623.53 5 -" |EPRI Study of Benefits 180.00 d|Dec/01/93}Aug/17/94 $0.00 eS --------S--EEEE-----E------------_-----EE |System Study RFP Haagenson 4.00 d|.-Jan/14/94 Jan/19/94 $700.00 = ,O 1200.06 System Study for SVC Haagenson*53.00 d Feb/02/94 Apr/18/94 $25,608.53 Z AL ZA |Project Administration PTI-Engr.53.00 d|Feb/02/94 Apr/18/94 $21,374.20 7 ZL ,ZA : ! Data Review PTi-Engr.9.00d Feb/02/94|_Feb/14/94 $5,947.20 a |Reactive compensation PTI-Engr.6.00d|:Feb/15/94} Feb/23/94 $2,973.60 ao !Existing SVC Controls PTI-Engr.3.00d|Feb/24/94|__Feb/28/94 $5,911.80 Zz i.LO Draft Report PTI-Engr.3.00d}Feb/24/94|Feb/28/94 $3,540.00 ma f Final Report PTI-Engr.35.00d Mar/01/94 Apr/18/94 $3,540.00 A Selection -SVS/SMES/BES Haagenson*1.00 d Apr/29/94 Apr/29/94 $140.00 oo IO1200.04 Design Battery Energy Storage 247.00d May/02/94 Apr/25/95 $1,518,175.00 7 Li 4 1200.02 Prepare Technical Specs Power-PM*,F 8.00d!}May/02/94|-May/11/94 $5,868.00 = | : |Equipment Design RFP Power-PM*”,35.00 d May/19/94 Jul/08/94 $1,680.00 ee | |:Evaluate Equipment Proposal Haagenson,F 5.00 d Jul/11/94 Jul/15/94 $2,442.00 ™ ;1200.03 _Finalize Scope &Estimate Power-PE,Hi 8.00d Jul/18/94 Jul/27/94 $944.00 : a |Evaluate Costs &Exceptions Haagenson*,5.00 d Jul/28/94/ Aug/03/94 $2,905.00 = Award BES Design Haagenson 1.00d|.Aug/04/94|_Aug/04/94 $560.00 l | Design BES BES Supplier 180.00d|Aug/05/94 Apr/25/95 $1,500,000.00 |Design BES___.FES Supplies B0.00d] Augitsi94 Apr/26i98 ace.UE _--_PS a 1200.05 Fabricate BES Material-SVC 120.00 d Apr/26/95 Oct/13/95 $7,500,000.00 ,.:ee ; 1200.07 Install System @ Wilson Sub BES Supplier 120,00 d Oct/16/95 Apr/05/96 $15,000,000.00 eee a”|| {411400.00 Substation Design 298.00d| Feb/18/94|-Apr/26/95 $519,019.20 zZ ;7 SCALE 1:250.000 1400.02 Evaluate Design Proposals Haagenson 3.00d}Feb/18/94;Feb/23/94 $1,260.00 | IPG Approves Sub.Design Firm JR Smith,Haz 1.00d Apr/29/34 Apr/29/94 $540.00 I : 1400.03 Finalize Design Contract -NTP JR Smith,Haz 3.00 d|.-May/02/94||May/04/94 $825.20 = | Project Administration Power,Contir 108.00 d|-May/05/94 Oct/06/94 $389,770.00 Z ZZ,7}| Substation Initiation 108.00]May/05/94|_Ocv06/94 $352,770.00 EZ ! a Data Review Power-PM*™,10.00d|May/05/94!|-May/18/94 $8,500.00 ae | Design Criteria 27.00d|May/19/94|-Jun/27/94 $146,447.00 \Za A | Define Criteria Power-PM”™,|20.00 d|.__May/19/94 Jun/16/94 $117,680.00 -a | Equipment Plan Power-Staff,F 15.00 d Jun/07/94 Jun/27/34 $19,275.00 PC | One-Line Diagram Power-Staff,F 7.00 d Jun/17/94 Jun/27/94 $9 492.00 a Healy Design Manual 35.00d|_Jun/28/94|_Aug/16/94 $85,690.00 WLI A _ Develop Manuals Power-PM",F 25.00 d Jun/28/94|-Aug/02/94 $82,450.00 ee |IDpvpen /LalRue |ALASKA ENERGY AUTHORITY |oman na | GVEA Review Haagenson'*,10.00d|_Aug/03/94)__Aug/16/94 $3,240.00 Ee :a a mmerap senses en Geotechnical Studies 18.00 d|Aug/25/94|Sep/20/94 $64,004.00 pee eee:Safin ROLTE | Soil Investigations Power-PM*,F 10.00 dj.Aug/25/94|Sep/08/94 $56,392.00 a Soils Report Power-Cleric:8.00d) Sep/09/S4;}Sep/20/94 $7,612.00 eee Site Surveys &Topo Power-PM*30.00d}Aug/25/94 Oct/06/94 $48,129.00 7 A Topo &Boundary Surveys Survey Crew 10.00d|Aug/25/94|Sep/08/94 $25,000.00 - Produce Topo &Site Maps Survey Draftir 20.00 d{;Sep/09/94 Oct/06/94 $20,060.00 ;eeriewel1400.06 Construction Plans 106.00 d Jun/17/94|-Now/16/94 $48,645.00 7 Zz 4 . General Pian Layout Power 5.00 d|..Aug/03/94|-Aug/09/94 $6,200.00 -_Foundation Design ;Power -20.00d| Sep/21/94 Oct/18/94 $8,600.00 aGrounding&Fence Plan Power 5.00 d Oct/07/94 Oct/13/94 $2,600.00 := Cable/Conduit Layout Power 50.06 d Jun/17/94}-Aug/26/94 $3,200.00 Scada Integration Power 5.00 d Jun/28/94 Jul/05/94 $2,300.00 ._- Structure Design Power 20.00d} Ocr/19/94) Now/16/94 $10,400.00 oo , Site Prep &Grading Plan Power 20.00 d Oct/07/94|_Novw/03/94 $7,500.00 Technical Constr.Specs Power 20.06d Oct/07/94 Nov/03/94 $7,845.00 Substation Equipment Specs 183.00a)_Aug/03/94|__Apr/26/95| $6a,ga5.00]:_TALEO TOTTI ET OPED CTTT EAT CASO?IULILLELLE Z Technical Specs Contingency 30.00d} Aug/03/94| Sep/14/94 $31,120.00 te z re pe a Power Transformer Power 20.00 d Aug/03/984|-Aug/30/94 $5,310.00 i Circuit Breakers/Switches Power 25.00d} Aug/03/94;Sep/07/34 $5,310.00 es Instrument Transformers Power 15.00d}Aug/03/94|-_Aug/23/94 $3,100.00 .ee Stee]Structures Power 20.00 d;-Aug/03/94|Aug/30/94 $4,700.00 P| Switchboard Panels Power 30.00 d|Aug/03/94|Sep/14/94 $5,200.00 .ES EE Control &Relaying Contingency 50.00 d Aug/03/94 Oct/12/94 $17,900.00 WLLL A Protection Analysis Power 20.00 d} Aug/03/94;-Aug/30/94 $2,800.00 ae] Schematic &3Line Drawings Power 15.00 d Aug/31/94|Sep/21/94 $2,000.00 Pe Control Panels Power 15.00d| Sep/22/94 Oct/12/94 $4,600.00 , Wiring Diagrams Power 10.00d| Sep/22/94 Oct/05/94 $3,500.60 - GVEA Review §.00d Oct/13/94 Oct/19/S4 $0.00 -: Submitt Bid Documents-Maftl Power 10.00 d Oct/31/94 Novw/14/94 $9,500.00 Ree . Review Vendor Proposals Power 5.00 d Apr/20/95 Apr/26/95 $2,800.00 - Review Shop Drawings Power 5.00d|Aug/03/94|-_Aug/09/94 $3,615.00 a _ . GVEA Review Consir.Contract 8.00 d Novw/04/94 Nov/16/94 $0.00 ; | 1400.07 Bid Construction Contract JR Smith,Cor 20.00 d|_-_Mar/23/95 Apr/19/95 $11,024.00 a a 7400.08 Evaluate Construction Bids JR Smith,Hag 2.00 d Apr/20/95 Apr/21/95 $1,460.00 : IPG Approves Contract Haagenson 1.00d Apr/24/95 Apr/24/85 $560.00 j 1400.01 Prepare RFP for Design Haagenson 3.00 d Jan/1 4/94 Jan/18/94 $300.00]-=: OC}Material Purchase/Delivery 242.00 d Mar/23/95|-Mar/O6/96 $3,991 463.16 Zz 77 7 ; 1400.07 ___Bid Material Contract 20.00 d Mar/23/95 Apr/19/95)__-$0.00 ; ,a A Evaluate Mat!Bids 5.00 d Apr/20/95 Apr/26/95,-_$0.00 = IPG Approves Material Contract 2.00 d Apr/27/95 Apr/28/95 $0.00 I Award Equipment Coniract 10.00dj May/01/95|-May/12/95 $0.00 : | Steel Structures -Delivery ;140.00 d|° May/15/95|-Dec/01/95 $0.00 on Electric Bus Work -Delivery 120.00 d|May/15/95|-Nov/01/95 $0.00 Breaker -Delivery 180.00d| May/15/95 Jan/30/96 $0.00 Switches -Delivery 100.00 d}|-_Mav/15/95 Oct/04/95 $0.06 Power Transformer -Delivery 200.00d|}May/15/95| Feb/28/96 $0.00 Relay/Control Panel -Delivery 160.00 d May/15/95 Jan/02/96 $0.00 1500.00 -Substation Construction -Wilson Contingency 219.00 d Apr/25/95 Mar/06/96 $3,991 ,463.16 Z 7 1500.01 Mobilization-Substation Lineman-Sub §.00d Apr/25/95|_-May/01/95 $54,583.00 ;:mal LLL.LLL ZA Site Work Dirt Contracta 20.00d}|May/O2/95|-May/30/95 $195,000.00 :a Fencing/Ground Grid Dirt Contracto}---s-'10.00.d May/31/95 Jun/13/95 $701,984.00 ; 4500.02 Excavate foundations Lineman-Sub 15.00 d May/31/95 Jun/20/85 $119,563.50 a 1500.03 install Foundations Lineman-Sub 10.00 dj -Jun/21/95|--Jul/05/95 $232,556.00 a Control Building Building Cont 60.00d|_May/31/95|__Aug/23/95 $364,312.00 :a ee 1500.04 Erect Steel Lineman-Sub 15.00d|Dec/04/95| Dec/22/95 $436,525.65 1500.05 Place Breakers Lineman-Sub 8.00d Jan/31/96| Feb/09/96 $481,856.00 a 1500.06 Install Switches Lineman-Sub 10.00 d Dec/26/95 Jan/08/96 $512,255.50 ; a Install Power Transfomer Material,Line 5.00d| Feb/29/96|_Mar/06/96 $935,396.80 .a ne 1500.07 Connect Low Voltage Control Wires Wireman,Cor 12.00d Feb/12/96|Feb/28/96 $270,052.70 : :| 1500.08 Connect to Main/<fr Bus Lineman-Sub 2.00d Jan/10/96 Jan/11/96 $206,833.10 ;oo a 1500.09 Inspect Wiring and Connections Wireman,Cor 2.00d Feb/29/96 Mar/01/96 $3,812,101.: . i Accept and Energize Breaker Bay _|Lineman-Sub 1.00d|Mar/04/96!-Mar/04/96 $1,732.89)* i Substation Modification -Healy Lineman-Sub 45.00 d Apr/25/85 Jun/27/95 $489,000.45 ' ! 1400.04 Construction Management Consir.Mana 239.00 di -Apri25/95|-_Apr/03/96 $332,691.00 =: Inspection Power 120.00 ¢Apr/25/35 Oct/12/95 $235,000.00 . La A Record Drawings/Closeout Power 20.00 d Mar/07/96 Apr/03/96)$24,000.00) . CO 1300.00 Geotechnical Studies 306.00 d|Feb/02/94|-Apr/20/95|$544,135.20)Z Zz ZZ.LLLILITLVASLILA ;7 - ey 1300.01 Geotech RFP (D&L)PM,(D 7.000 Feb/02/94|Feb/10/94 $8,946.00 oe - 1300.02 Evaluate Geotech Prapsais Haagenson,¥2.03d|Feb/24/94) Feb/25/94|_$1,340.00}" Select Geotech Firm Wyman,Haac 200d) Feb/28/94|__Mar/01/94 $935.20 | ¥- IPG Approves Award Haagenson 100d] Febre/94|Feb/28/a4 $560.00 '= 1300.03 Finalize Geotech Contract Haagenson*,300.4 02/94|___Mar/04/a4 $810.00 A issue Notice-to-Proceed :9.00 Mar/04/94 Mar/04/94 $0.00 ; 1300.04 Soil Investigations -Phase |Rentingericy 65.00 d Mar/07/94 Jun/06/94 $227,295.00 :ZZ LL f LLL mai MLL (uA oo Project Administration Geotechnical 65.03 G Mar/07/94|-Jun/06/94 $204,895.00))VLLLLLLBY ZZ 7 Review Existing Data Geotechnical 5.00d Mar/07/94|-Mar/11/94 $2,800.00 = Review Design Criteria Geotechnical 5.00d Mar/07/94 Mar/11/94 $3,160.00 _ Geologic Mapping Geotechnical 5.00d|-Mar/14/94|-Mar/18/94 $9,610.00 -TO Geology Ground Truth Geotechnical 2.00 d Apr/18/94 Apr/19/94 $10,616.00 | Verify Boring Locations Geotechnical 2.00d|Mar/14/94|-Mar/15/94 $2,320.00 || Foundation/Anchor Types Geotechnical 5.00 d May/16/94|-May/20/94 $6,700.00 = Drilling/Sampling Methods Geotechnical 1.00d Mar/16/94 Mar/16/94 $544.00 4 Field Locate Borings Geotechnical 3.60 d Mar/17/94 Mar/21/94 $11,910.00 = Field Exploration Geotechnical 19.00 d Mar/22/94 Apr/15/94 $104,250.00 Ee | . | Field/Lab Testing__Geotechnical 10.00 d Apr/18/94 Apr/29/94 $13,425.00 | Lab Results Report Geotechnical 10.60 d May/02/94|_May/13/94 $9,680.00 a Phase |Report Geotechnical 15.00d| May/16/94|-Jun/06/94 $25,320.00 ee | 1300.06 Soil Investigations -Phase It Contingency 158.00 d}Sep/01/94 Apr/20/95 $304,249.00 a - IPG Approves Phase Ii Haagenson,V 1.00d|Sep/01/94|Sep/01/S4 $560.00 GVEA Issues NTP Haagenson 1.00d|-Sep/02/94|Sep/02/94 $280.00 ;; Project Administration Geotechnical 116.00d Nov/01/94 Apr/20/95 $278,409.00 ; Data Review Geotechnical 5.00d|Nev/01/94|-Nov/07/94 $2,800.00 _ Finalize Design Criteria Geotechnical 5.00d|Novw/08/94|-Now/15/94 $3,160.00 - Update Geologic Mapping Geotechnical 5.00d}Now16/94|-Nov/22/94 $9,610.00 _ Determine Boring Locations Geotechnical 2.00d}Novw23/94;Nov/28/S4 $2,320.00 = Finalize Foundation Design Geotechnical 8.00d Mar/31/95 Apr/i1/95 $10,720.00 |= Determine Drilling Methods Geotechnical 1.00d|Novw/29/94|_Nov/29/94 $544.00 ; Field Locate Borings Geotechnical 3.00d|_Novw/30/94| Dec/02/94 $11,910.00 i Field Exploration Geotechnical 50.00d;Dec/05/94|-Feb/15/95 $159,895.00 ee ae Field/Lab testing Geotechnical 10.00d} Feb/16/95 Mar/02/95 $23,650.00 | Field/Lab Results Report Geotechnical 20.00 d Mar/03/95 Mar/30/95 $19,360.00 en Final Soils Report Geotechnical 15.00 d Mar/31/95 Apr/20/95 $25,320.00 -, CO 4700.00 Apply For Easements/Permits 272.50 d Jan/17/94 Feb/15/95 $572,516.25 ZZ f rt mi os Z A 1700.01 Research Ownership Contingency 150.60 d Jan/17/94|-Aug/17/94 $84,189.43 Zz ZZ PEEIZLD PEI 4 Land Use RFP Haagenson,¥2.00 d Jan/17/94 Jdan/18/94 $960.00 | Evaluate RFP Haagenson 100d Jan/28/94 dan/28/94 $280.00 I Issue PO Haagenson 2.00d|Feb/01/94|Feb/02/94 $210.00 J | Preliminary Research 76.00d} Feb/03/84|May/20/94 $47,088.00 Z ZZZEIA ZZ North of Tanana River Title Researc!10.00 d Mar/11/94 Mar/24/94 $3,240.00 | Fairbanks Substation Title Researc 10.00 d Feb/03/94|Feb/16/94 $720.00 |] South of Tanana River Title Researc 25.90 d Feb/03/94 Mar/10/94 $14,400.00 a Alternates Report Title Researc 30.00 d Apr/11/94|-May/20/94 $28,728.00 A Detailed Ownship Analysis Kline,Toenie 60.30 d May/24/94)_Aug/17/94 $32,978.43 |---_----------Agency Permits (BLM,ADL.etc.)Kline,Wyman 80.00d| May/24/94|_Sep/15/94 $41,404.00 File FAA Construction Notice Wyman*1.00d|May/23/94,-May/23/34 $520.00 I 1700.02 Procure Right-to-Enter Kline,Conting 25.00 d Feb/28/94 Apr/01/94 $2,655.22 ee 1700.03 Prepare Easement Documents Kline,Toenie:60.00 d|Aug/i8/94 Nov/10/94 $8,184.00 1700.04 Acquire Easements/Permits Kline,Toenies 114.50d}Aug/25/94| Feb/10/95 $254,908.40 $18,000,000.00 Period Costs $13,815,108.23 ; $6,557,467.84 $6,823,839.54 $6,862,910.05 $0.00 $9,963.60 $12,344.96 $83,811.05 $137,949.96 $241.632.17 $426,339.54 $362,208.07 $325,197.32 $448,277.66 $402,086.44 $349,809.57 $304,585.02 $312,792.64 $301,334.59 $234,071.45 $251 968.58 $1,804,415.03 §$1.642,646.52 ee $3,494,538.30 cern ar $4,542,615.11 $4,060,949.26 ss $1.13851511 $1,663,446,00 $3,366,051.88 $1,769571.71 , : -SPSS ISITERSS RESET PTSE SSRN RNS RRS SRR 565,573.71 _ot 196,013.wou.:/ennneae 1,051,505.68 $960,905.45 $389,854.56 ; April 20,1994 | delat , OES SSR lanaieee $26.207.73 $1,377.73 $0.00 Milestone A Summary Bz4402 *ATER WYNNE Sun 1800222SW.ColumbiaHEWITTPordand,Oregon 97201-6618(503)226-119!DODSON Fax (503)226-0079 S&SKERRITT ATTORNEYSATLAW FACSIMILE TRANSMITTAL NOTICE:This facsimile contains confidential information that is being transmitted to and is intended only for the use of the recipient named below.Reading,disclosure,discussion,dissemination,distribution,or copying ofthisinformationbyanyoneotherthanthenamédrecipientorhisorheremployeesoragentsisstrictlyprohibited.If you have received thisfacsimileinerror,please immediately destroy it and notify us by telephone, (503)226-1191. DATE:November 9,1994 TO:Dennis MceCrohan AIDEA CITY/STATE:Anchorage,AK FAX NUMBER:907/561-8998 OFFICE NUMBER:907/561-8050 FROM:Ron Saxton DOCUMENT :Railbelt Reserve Issues document PAGES (INCL.COVER)7 USAGE TIME CLIENT NUMBER:53844-0000 AN ORIGINAL OF THIS FAX WILL ____.-_WILL NOT __x _FOLLOW. Dennis: This document was attached to the draft Bradley Lake PMC meeting minutes dated 9/21/93. nen Rilo gO .me <9 wali ah o - APA 4 Pr Ci RWS SES ALIALNALAI J 4/IUFS RAILBELT RESERVE ISSUES or pa PJURISDICTIONANDAUTHORITYFORRESOLUTION"FER RB fa Introduction:Over the course of several months,ine Railbelt utilities have been discussing the interpretation of their reserve obligations under various contracts.Of particular concern is the appropriate forum for resolving the Railbelt reserve issues,since some issues require technical expertise,while other issues present policy considerations or questions of contractual intent. Railbelt reserve issues have been considered by the Bradley Lake PMC,the Railbelt Utilities Group (RUG),which has no formal responsibilities for reserve issues,and the Intertie Operating Commictee (I0C),established under the Alaska Intertie Agreement (AIA).In addition to the Bradley Lake PMC,the I0C,and the RUG, the Alaska Systems Coordinating Council (ASCC)has been involved and could continue to be involved in evaluating the ramifications of alternative courses of action or suggesting possible solutions to the Railbelt reserve issues.However,the ASCC is a purely advisory group,with non-mandatory participation. Issues:The Railbelt reserve issues stem from the application of the Alaska Intertie Agreement (AIA)to the operation of theRailbeitelectricsystemintheabsenceofapowerpoolingagree-ment.The issues are complicated by the existence of separately owned,but jointly operated,generating facilities. Three critical areas.emerge from an analysis of Railbelt reserveissues: *The status of the Alaska Energy Authority as a "Particip- ating Utility"under the terms of the AIA and the consequences of that characterization. *The obligations of the Railbelt utilities toe provide reserves,and the character of those reserves,under the terms of the AIA. *The role and the authority of the Intertie OperatingCommittee,under the AIA,to ascertain or determine project characteristics,to interpret,modify,or enforcetheprovisionsoftheAIA,or to undertake revisions to the AIA. To resolve these issues,it is first necessary to determine theappropriateforumforaddressingtheseissuesandthentodosowithintheframeworkofestablishedagreements. Provisions of Existing Leqal Aqreements:Answers to several keyRailbeltreservequestionscanbefoundwithinthetermsofexistingagreements,which in turn provide the forum and framework RLS\IOCRES_pp om mee w for resolution of the issue.Given the broad latitude Addendum No. 1 gives to che IOC on reserve issues,and the deference given the AIA in the Bradley Lake Agreement,the majority of issues underdiscussionshouldberesolvedbytheIocundertheATA.1«Section 4.1.1 of the AIA provides that the AEA "will necome a Utility Participant at such time as it sells power to a party that is not a Participant and is connected to the Participants' interconnected system."AEA's sale of Bradley Lake Power to Seward,Homer and Matanuska,who are not AIA participants,makes AEA a Utility Participant under the AIA.As a Utility Participant, AFA has a Reserve Capacity Obligation and an Operating Reserve Obligation. 2.How_is a Utility Parricipant's Reserve Capacity Obligation determined? Addendum No.1 to the AIA establishes the basis for determin- ing the reserve obligation of each Utility Participant.TheinitialReserveCapacityObligation(RCO)of each Urility Parrici- pant was set at an amount equal to thirty (30)percent of theprojectedAnnualSystemDemandoftheUtilityParticipant.The RCO can be adjusted from time to time by the IOC. 3.How_is a Utility Participant's Operating Reserve Obligation determined? In addition to the RCO,each Utility Participant has an Operating Reserve Obligation (ORO).Addendum No.1 to the AIAestablishesaTotalORO,which shall be equal to "150 percent of the largest generating unit contingency in operation on the intercomected systems of the Utility Participants."Each Utility Participant's ORO is based on a formula set out in Section B-2.3.1 of Addendum No.1.The AIA does not expressly provide the I0C with the authority to modify this formula. OROs can be modizied or adjusted by the IOC from time to time. (Section B-2.1.2 of Addendum No.1). 4.How much of a Utility Participant's Operating Reserve Obliga- tion must be Spinning and Non-Spinning Reserves? Section B-2.2.1.1 provides that the "Spinning Reserve portionofthetotalIntertieSystemshallnotbelessthananamount equivalent to 100 percent of the Declared Capability of the largestgeneratingunitcontingencyinoperationontheinterconnectedsystemsoftheUtilityParticipants."The Declared Capability ofaUtilityParticipantisdeterminedbythatParticipant(§B-2.2.1.1),but the Declared Capability of a generating unit cannotexceedthepublishedcapabilityofthatunit(Exhibit A,Definition 2 RLS\IOCRES.po No.10)and is subject to verification by the IOC for reserve purposes.The balance of the Total ORO can be maintained with Non- Spinning Reserves. Section B-2.4.1 provides that "System Spinning Reserves shall be calculated at any given instant as the difference between the sum of the net capability of all generating units on line in the respective system and the integrated System Demand of the system involved." 5.Can load shed be used in liey of Spinning Reserves? Section B-2.4.2 provides that a "Utility Participant's Spinning Reserve may be satisfied by an automatically controlled load shedding program.The load shedding program shall assure thatcontrolledloadcanbedroppedtomeettherequirementsofSpinning Reserve and in such a manner as to maintain system stability and not cause objectionable system conditions or cascading effects in other Utility Participants'systems.The Operating Committee shall review and approve the Utility Participant's load shedding program that will be used to satisfy its Spinning Reserve requirements." 6.How should "quality of spin"and "system response"issues be resolved? The IOC has a great deal of authority concerning reserve issues.Section B-2.4.2 requires the IOC to review and approve load shedding programs to assure system stability and section B- 2.4.4 requires the I[0C to utilize prudent utility practices inassessingeffectiveutilizationofcapacity,transmission limita- tions,and local area requirements.In the course of these duties, it would be appropriate for the IOC to discuss and develop criteria for assessing the reliability of various spinning reserve and system reliability issues and options.Independent of theprovisionsoftheAIA,the ASCC could address,and has,in fact, been considering,these issues. 7.Who determines r=serve requirements? The AIA delegates authority to the IOC ona number of reserve-related issues.The I0C can establish criteria for automatic load shedding and review and approve a Urility's load shedding programs(§§B-3.2.3,B-2.4.2),adjust Reserve Capacity Obligations (§A-1.1.2),determine Accredited Capability for each Utility Partici-pant (§A-1.1.3),determine,adjust,or modify each UtilityParticipants'Operating Reserve Obligations (§§B-2.1.2,B-2.3.1),modify or change Total ORO,Spinning and Non-Spinning Reserveratios,and criteria for generating unit capability for OperatingReserves(§B-2.2.3),and establish procedures to assure thatOperatingReservesareavailableonthesystemsoftheUtilitiesatalltimes(§B-2.4.3). 3 RLS\IOCRES.pp edT£the IOC members are dissatisfied with capacity or cperating reserve obligations or criteria for the Railbelt,the Toc is an appropriate forum to resolve those differences. a.How should a tcintlv-owned cenerating unit be treated for rhe urpose of determin?j The ATA does not specifically address jointly-owned generating units.In the absence of IOC direction,it would be reasonable to assign each utility a percentage of the generating unit based on its ownership interest for reserve purposes. 9.Should Utility Participants be allowed to make non-firm sales of their Spinning Reserves? Nothing in the AIA precludes Utility Participants from making non-firm sales of Spinning Reserves,provided the non-firm sales can be discontinued quickly enough to insure system reliability. (§B-2.4.2) 10.Jf atrili Participan ells firm or non-firm power uld a selling 6 urchasin tility be required to provi reserves for that sale? This if an issue that must be resolved on a contractual basisbatweenthesellingandthepurchasingutility.Interconnected utilities should seek a consistent approach. Jurisdiction and Authority for Resolu :Only the Io0c has contractual responsibility for resolving issues related to reserveobligationsintheRailbelt.However,the IOC has tended to focusonthetechnicalexpertiseoftheRailbelturilitiesandhasbeen unsuccessful in resolving some of the fundamental policy questions inherent in this debate.Thus,it may be appropriate to convenetheRailbeltUtilityManagerstoresolvethesepolicyquestions.In addition,resolution of certain technical questions may depend on the resolution of closely-related policy issues. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE Although the majorityof the Railbelt reserve issues are contractu-ally reserved for the IoC,there are certain limited issues forresolutionbytheBPMC. *Declare Project capability*Establish criteria for the allocation of capacity and energy*Establish criteria for Participant Project scheduling RAILBELT UTILITY MANAGERS - POLICY ISSUES The following issues arise under the AIA,but have not successfully 4 RLS\IOCRES.pp bean resolved on a technical level by the existing IOC members. These policy issues require the immediate attention of the Railbelt ucility managers. *Address AEA's status as a "Utility Participant”under the AIA. *Determine the acceptability of selling spinning reserves under AIA and IOC operating criteria. *Discuss and consider possible amendments or modifications to the technical and/or procedural provisions of the ATA. Clarify the status of the investigation into "quality" and "system response"criteria for reserves.(Currently being discussed by ASCC.) *Affirm or,if necessary,recommend modification to,ASCC planning and operating criteria for interconnected utilities. INTERTIE OPERATING COMMITTEE --TECHNICAL ISSUES The following issues are assigned to the IOC by the provisions of Addendum No.1.The relevant contract provision is cited. *Determine each Utility Participant's Reserve Capacity Obligation.(B-2.1.2) *Determine each Utility Participant's Operating Reserve Obligation.(B-2.1.2) *Establish criteria for the approval of programs to provide load shed in lieu of spin (SILOS).(B-2.4.2) *Determine the spinning and non-spinning portions of eachUtilityParticipant's Operating Reserve Obligations.(B- 2.4.3) *Determine the availability of each Utility Participant's Operating Reserves.(B-2.4.3)*Establish criteria for assessing the capability of a generating unit used to provide Operating Reserves.(B- 2.2.2 and .3) *Determine each Utility Participant's Accredited Capabili- ty.(A-1.1.3) *Establish criteria for system response when Spinning Reserves are sold.(B-2.4.3) *Establish criteria for determining the reserve require-ments of jointly-owned generating wnits.(B-2.1.2) Summary and Recommendations The range of issues outlined above is extensive and potentiallycontentiousamongtheRailbeltutilities.Issues that the IOC hasbeenunabletoresolveareidentifiedaboveandshouldimmediately be considered by the Railbelt utility managers.Simultaneously,the I0c should begin the task of establishing the various technicalcriteria,definitions,and requirements it is charged withdevelopingundertheAIA.The establishment of objective,agreed- 5 RLSATOCRES .pp upon criteria for accrediting generating resources,determiningreserveobligations,assessing generating capability,ete.could allow many of these issues to be resolved on'a more objective,less political basis,thus insuring that adequate reserve capability 1s provided in the Railbelt. 6 RLS\IOCRES.pp "oe an a a eeweenae: FinancialandinvestmentAdvisors 1000 SW Broadway,Suita 1500 Portland,Oregon 97205-3067 503-223-3385 (Fax)503-223-7002 September 23,1994 TO:Riley Snell Valorie Walker FROM:Pat Clancy Scott Clements RE:Intertie Financing We have completed our review of the documents you provided us on the Intertie Financing.We concur with your observation that there are a number of issues that need resolved prior to proceeding with a financing.Here is a list of the issues we believe nced to be resolved.As these issues get resolved,in all likelihood,new issues will emerge. 1,Authority of the various parties to enter into this long term agreement In reviewing the problems of the Washington Public Power Supply System financings,the mostimportant ...assumption -which proved wrong -was clear authority on the part of the participants to enterintothesupplyagreement.We would suggest that each participant provide,up front,an opinion letter from their counsel as to their authority to enter into the Intertie agreement 2.Clear agreement on.who will participate in the financing.It is unclear that AIDEA can issuetax-exempt bonds for this project with Chugach and GVEA as participants.Therefore,FMUS and ML&P would become liab's for a stream of payments for taxable bonds.ItseemsunlikelythatML&P would agree to this situation.On the other hand,if a tax-exempt | participant issues bonds separately,it is not clear what happens tn those.bonds if they stop partiapating in the Agreement because the project would all be taxable and the paymentswouldnowbecomingfromnon-exemrt parties.A different type of arrangement may be needed. 3.Increasing concentration of debt burde:.On the Healy -Fairbanks Intertie,the onlyparticipantsthatcannotwithdrawareGVEAandFMUS.Given the debt burden of the HealyCleanCoalProject,it is not clear that GVEA can maintain its "investment grade"status. This is even more the case for FMUS which is already a struggling utility.In a worst case,all the debt ends up on these two parties and it is not clear they can handle i.We need todevelopafinancialanalysis(or have ore developed by the participants)that shows the effectofallthedebtbeingwiththelastpartiesonthosepartiesandassessthefinancialviabilityof financing based aon that analysis. of the potential last shareholders with a liability of almost 15%.The utility is not healthy4,Analysis of what happens with a bankruptcy of one of the remaining parties,FMUS is one Jandhastakenon-going supportof the City to continuc to operate.We should prepare an Adanfa Austin Boston Denver Fort Myers Harrisburg Houston Los Angsles Memphis Minneapolis New York Orlando Philadephia Portland San Prancisco /An Affitiate cf MaringMidiand Bank,WA : re Poo!Pour .a a ee a eeuatee_AIDEA Intertie Financing 90 eePage2*epee:a # analysis of what would happen if only GVEA and FMUS were left and then PMUS weit bankrupt. 5.Legal analysis of APUC authority for rate increases related to the Intertie system.To theextentthepaymentsexceedtherevenuesproducedbythe1.5 mil rate increases authorized "the Intertic Agicciuent,Will ne APUC grant rate increases to accommodate the increased debt payments?' 6.Effect of rate increases on electricity rates in Fairbanks.The rates need to stay compctitive Yorthedemandforelectricitymaydrop.Long term conversion to altemative heating and energy sources would be detrimental to the ability of GVEA and FMUS to meet the long term payment obligations. 7.Unlimited exposure to future assessments.Section 10¢of the Participants Agreement leaves the participants with an unlimited exposure to future assessments.Without a clear Yomechanismforfinancingthoseassessments(bonding authority may be used up by then)it is not clear that all of the participants have the capacity to pay cash as needed,A mechanism for financing future assessments should be explored especially for the weaker of the participants. Please feel free to call either of us to discuss any of these points.It is our opinion that the documents may form a base for a financing but we do not believe the project would be viable without the use of the moral obligation of the State.We suggest stronger agreements on the part Of the parties involved and 4 clear picture of who is in and who is out before proceeding with more analysis. suyt .?es 8,°ro t - tet gg Fi mez an wij we AS Hs #Va jal Gs BFR wy #8 ga Hf &Bo ° o 8 go 3i September 22,1994 Mr.Willlam R.Snell,Executive Director Alaska Industrial Development and Export Authority480WestTudor Anchorage,Alaska 99503-6690 Dear Riley: I thought the meeting with the bond insurers and the tours of local projects and the Red DogMinelastweekwentverywell.The latter was especially impressive and the film showing theprefabricatedconcentratorbuildingsmovingslowlyuptheroadfromthePortisstillquitevividinmymind.Thanks for Including me. As to financing of the interties which was discussed among team members on Tuesday,we havethefollowingobservations/concems after reading the handout of the several agreements andpressingJohnCostagliolaintoserviceuponourreturn. Chapter 18 SLA 1893,Sec.29,authorizes AIDEA to issue up to $60 million of bonds to finance an intertie between Healy and Fairbanks "owned,for the benefit of all of the utilities participating -in the Intertie,by GVEA".Sec.30,relating to the intertie between Anchorage and the KenaiPeninsula,authorizes a similar par value cf bonds for an Intertie "to be owned,for the benefit of ail of the utilities participating in the interties,by Chugach."Query:Is there significance to the wards "owned”in the case of Sec.29 and "to be owned”in Sec.307 Is there significance to theplurallanguage""interties"in Sec.30?Se The Intertie Grant Agreement provides that the Participating Utilities shall hold undivided ownership interest as tenants in common In the proportion set forth In Attachment 1 thereof. Query:Is this consistent with the bond authorizations of Secs.29 and 30 above which specify ownership by GVEA or Chugach for the benefit of the participating utilities?It Is noted that Chapter 19 SLA 1993 in Sections 1 and 2 makes grants to GVEA of $43.2 million and Chugach of $48.8 million,respectively,for the benefit of all utilities participating in the Interties. The Participants Agreement expires at the end of the Project's useful life,according to Section2(0).We suggest that a proviso be added to require that all Project indebtedness must havebeenretiredpriortosuchatermination.. Section 4 (b)(3)of the Participants Agreement sets forth the withdrawal rights of ParticipantsandinregardtotheAnchorage-Kenai Segment,provides that the "decision date"will be a datecertainaftercompletionofroutestudiesandcostestImates.Section 7 (b)contains a provisothatdetaileddesignandconstructionwillnotcommenceuntilaftercompletionoftheprocesssetforthInSection4(b)(3).Query:What if actual costs exceed estimates?Could a Participantallegethatifithadknowncostswouldbeincreased,its economics change and it would have withdrawn?: Section 8 (b)(2)of the Particlpants Agreement requires unanimous agreement among thePartiestoparticipateinacollectivefinancingagreementandtoapprovetheBondResolutionadoptedtoImplementthecollectivefinancing.Section 8 (b)G)allows each Participant to 17117 FROM PAINE WEBBER SF To 1997561839398 PAGE .8682/7003 .17218 FROM PAINE WEBBER SF To 19875616999 PAGE .8090 G89 Separately finance Its share of Additional Costs.Query:Should not this apparent contradictionbeclarifiedtoprovide(3)as an altemative and to require unanimous agreement in (2)onlyamongthoseparticipatingInthecollectivefinancing? Section 10 and definitions in the Participation Agreement relating to "Operating Year,”"Operating Budget,”"Annual Project Costs,""Construction Year”and 'Annual PaymentObligation”lead to a distinction between the effective date of the Agreement and "Date ofCommercialOperation”.it Is not clear what happens if Commercial Operation is neverachieved.Bondholders will probably insist upon a take-or-pay contract commencing on a datecertain,regardless of completion.Participants can partially protect themselves by capitalizingintarestbeyondtheestimatedcompletiondate,by Insurance against damage or destruction andbyliquidateddamagesimposedupontheconstructioncontractors.However,we believecompletionriskisjustnotacceptabletobondholdersifattractiveborrowingratesaretobeacnieved. It should be noted that in the case of the Bradley Lake financing,the State's moral obligation wasavailableinadditiontothecapitalizationofinterestwhichextendedforsixmonthsbeyondtheestimateddateofcommercialoperationandpermittedafullyear's delay before a payment wasdue.We believe Section 23 of Chapter 18 SLA 1993 extends to the Intertie financing the State'smoralobligation,if desired. There are Several references In the various documents to approvals of retall rates,costconsiderations,etc,by the Alaska Public Utilities Commission.What would be the effect if there wera to be extended downtime of one or both of the Project Segments and the APUCdeterminedthatno"benefit”was being received from the Projact.Could the APUC mandate theloweringofratesthatwouldjeopardizeaParticipant's ability to pay?Is there potential for delainobtainingapprovals,if any,by the APUC prior to commencement of construction?: In addition to the Work Products required of Participants ss outlined in the Intertie Financing handout at our meeting,we would like to see three years of audited operating statements for each Participant in due course. Overall,subject to development of suitabie financing documents,we belleve a revenue bondissuecanbestructuredbasedupontheseveralagreementsthatwereviewed,The step-upprovisionsareadequateandcognizanceofconstructionandoperatingconcemsisacknowledged.We defer to tax or bond counsel as to what portion of the financing can be tax- exempt given Project ownership.If the latter was not critical,AIDEA could probably own and finance the Project on a tax-exempt basis. We appreciate tha opportunity to comment on this important financing and look forward to implementation of the initial segment in the near future. Very truly yours, Terrence E.Comerford | First Vice President TEC:bmb «Kx TATA nArE Anna ate wee WOHLFORTH,ARGETSINGER,JOHNSON &BRECHT PETER ARGETSINGER SULIUS J.BRECHT CYNTHIA L.CARTLEOGE Camm.&.CUES ROBERT MM.JOHNSON THOMAS F.KLINKNER BRAOLEY E.MEYEN JAMES A.SARAFIN MENNETH €.VASSAR ERIC CC WOHMLFOmTES A Baor On ATTORNEYS AT Law O90 WERT HIM AVENUE,SUITE GOO ANCHORAGE,ALASKA 9950-2044 rePatteeTCLEPHONE 19907)270-6401 TELECcOomV (%O7)27G-SO2A MEMORANDUM TO:Daniel W.Beardsley Contracts Manager Alaska Industrial Development and Export Authority FROM:Pete Argetsinger Kenneth E.Vassar Thomas F.Klinkner DATE:September 21,1994 SUBJECT:Intertie Project Financing Our File No.3730.0629 At the conclusion of the Working Group meeting at AIDEA on September 13 in connection with the project referenced above,each member was asked to provide you with questions or comments to be used in putting together a reply totheAugust16lettertoAIDEAfromtheIntertieParticipantsGroupinquiringastothe possibility of AIDEA financing for the interties "approved"by the Alaska Legislaturein1993. Our initial comments,in no particular order,follow.Our focus was on the Northern Intertie,but most are applicable generally.Please contact Pete Argetsinger,Kenneth E.Vassar,or Thomas F.Klinkner with questions or if we may assist further. 1.Bonds issued by AIDEA for the interties are expected to be private activity bonds which,because of the two-county rule,would normally be expected anticipate that a partion of the bonds issued by AIDEA representing their "share"willbetaxexempt.If so,plaase provida an opinion of nationally recognized bond counsel reaching that conclusion.While bond counsel to AIDEA will not rely on that opinion,they will take it into consideration in reaching an independent conclusion on the matter.-- to be taxable.Please indicate whether any of the municipal utilities owl | 2.Chapters 18 and 19,SLA 1993,contemplate that ownership of eachintertiewillbebycertaindesignatedutilities,albeit for the benefit of all utilities using WOHLFORTH,ARGETSINGER, JOHNSON G&G BRECHT the intertie.See,e.g.,Section 29 of Chapter 18 and Section 1(c)of Chapter 19.The agreements between the utilities provide,on the other hand,for undividedownershipinterestsbythe"Participating Utilities"as tenants in common.Presum- ably,the Participating Utilities expect that any loan by AIDEA of the proceeds of its bonds would be made on the same basis as the agreements between theParticipatingUtilities.Has the Attorney General considered whether the contem-|plated manner of proceeding complies with the statutes?If so,please provide a |copy of the Attorney General's opinion. 3.Chapter 19,SLA 1993,is an appropriations bill,but contains a'|significant amount of substantive law.Has the Attorney General considered whether Chapter 19 violates the constitutional requirement that appropriation bills be confined to appropriations (AK Const.Art.Il,Sec.13)?If so,please provide a copy of that JOpinion. 4.Neither the legislation nor AIDEA's strategic plan contemplate ownership of the interties by AIDEA,nor does AIDEA expect that the bonds under discussion would be general obligations of AIDEA.Rather,they would be revenua bonds to which payments under a loan agreament between AIDEA and a utility orutilitieswouldbepledged.In additicn,Section 23 of Chapter 18,SLA 1993,gives VAIDEAtheabilitytoestablishacapitalreservefundforIntertlebondsunder_AS 44.88.105 in connection with which the "moral obligation”of the State is given to replenish any deficiencies in such a fund.(The capital reserve fund would,presumably be established from band proceeds.)If the Participating Utilities W contemplate that AIDEA bonds for tha interties would additionally be backed by the homoralobligationoftheState,the crecit of each Participating Utility must be sufficiensothattheneedtacallonthemoralobligationneverarises.Please provideevidencethateachParticipatingUtilitycarriesaninvestmentgraderatingfromMoody's and/or S&P and-is expested to retain that rating after taking on theObligationofAIDEAbondsfortheiniertie.Further,please provide an indication of the willingness of the municipalities involved to make their initial and ultimate obligation on the AIDEA bonds a general obligation of the municipality.In tha case of the cooperatives,please provide an indication of the additional security each is willing to provide to back Its obligation on any AIDEA bonds. 5.Alaska Public Utilities Commission approval and oversightis a concerninthecaseofanyutilityfinancing.Please provide a memorandum of counsel to the Participating Utilities discussing the APUC's jurisdiction ta consider and approve or disapprove both the existing agreements between the Participating Utilities and the agreements which will be entered into in connection with any AIDEA intertie bonds. MEMORANDUM 09/21/1994 intertie Project Financing AFFDanEY . .Page 2 9 WOHLFORTH,ARGETSINGER, JOHNSON &BRECHT Indicate whether the APUC has been requested to issue an order delineating its|jurisdiction,if any,and its inclination to exercise whatever powers it may have as to the interties and their financing.If such an order is not expected,indicate whether an Attorney General's opinion will be substituted. 6.Indicate the willingnesd of the Participating Utilities to negotiate and )enter into a new agreement or agreements which,among other things,will vest ownership and operation of the interties In the manner contemplated by Chapters 18and19,SLA 1993,and will give AIDEA the security it needs to sell its bonds--in effect,a guarantee by the utility or utilities,whether they use the intertie or not. -oee MEMORANDUM 09/21/1994 Intertie Project Financing 3AFFOASF1 Page 3 oe bo i .°.ay ca .rant ALASKA INDUSTRIAL DEVELOPMENT ;ra)>¢AND EXPORT AUTHORITY |=ALASKA:ME ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE,ALASKA 99503 907 /561-8050 FAX 907 /561-8998 MEMORANDUM TO:Jon Rubini,Esq. Keith Laufer,Esq.Pete WeelFROM:/ Executive Director DATE:August 23,1994 Subject:Intertie Participating Group Project Financing We have received a formal inquiry letter by Thomas Stahr,Chairman,on behalf of the Intertie Participating Group,requesting a determination of whether AIDEA is in a position,without further legislative authorization,to finance the Participant's share of the additional cost of the Intertie Projects. Please review the legislation and existing agreements to determine if all necessary legislative and contractual obligations are in place to allow AIDEA to finance the projects.Identify any prerequisites that must be accomplished before AIDEA can proceed with financing. We anticipate providing a detailed response to the Participants by mid September. That response will identify legal requirements,necessary work products from the Participants,and financial marketing requirements.Please coordinate your efforts and provide me with a draft response by the end of the first week of September. DWB:bif h:all\beardsle\aidea\ipggaa6 Attachment cc:Dennis V.McCrohan,Deputy Director (Energy) Valorie F.Walker,Deputy Director (Finance) Daniel W.Beardsley,Contracts Manager GAM -Se3/74 |-WY -)Municipality of Anchorage Municipal Light &PowerTomFink,Mayor 1200 East First Avenue Anchorage,Alaska 99501-1685 (907)279-7671,Talecopi CEIVE 2H]ly .E ;ia |August 16,1994 4QWilliamR.Snell AUG 19 294 Executive Director :Alaska Industrial Development Alaska eustrial eevelopment&Export Authority and Exsort Authority 480 W.Tudor Road Anchorage,AK 99503-6690 Re:Intertie Financing Dear Riley: We had earlier talked about the possibility of AIDEA providing the additionalfinancingnecessarytocompletethenorthernandsouthernsegmentsoftheParticipantsIntertieProject.The Intertie Participants Group ("IPG”)at its last meeting directed me,as chairman,toformallyaskyoutodeterminewhetheryouareinaposition,without further legislativeauthorization,to finance the Participants'share of the additional cost of these projects,either asAIDEAorthroughAEA. If you determine that you are in a position to arrange for the joint financing of theParticipants'additional cost of these projects,the IPG would like to request that you take thosepreliminarystepswhicharenecessarytodeterminetheconditionsandcostsofthisjointfinancingoftheproject.; The IPG is anxious to determine whether joint financing through AIDEA or AEA isanoptionandtherelativefinancingcostofthisoptiontotheParticipants.Please feel free tocontactmeifyouhaveanyquestionsorrequirefurtherinformationfromtheprojectParticipants. Sincerely yours, AL LIGHT &POWER 7? omas R.Stahr General Manager and Chairman,IPG TRS:lka ce:Norm Story,HEAJamesN.Woodcock,MEA Dave Calvert,City of Seward Vince Mottola,FMUS Robert Hufman,AEG&T Gene Bjornstad,CEA Mike Kelly,GVEA : Putting Energy Into Anchorage FitePadheltNZWTOMunicipalLight&Power 1200 East First Avenue Anchorage,Alaska 99501-1685(907)279-7671,-Talecopigrs:276-2961,27 202272 ! .EGEIVEAugust16,1994 49WilliamR.Snell AUG 19 1994 Executive Director :Alaska Industrial Development Alaska eustrial Development&Export Authority and Export Authority 480 W.Tudor Road Anchorage,AK 99503-6690 Re:Intertie Financing Dear Riley: We had earlier talked about the possibility of AIDEA providing the additionalfinancingnecessarytocompletethenorthernandsouthernsegmentsoftheParticipantsIntertieProject.The Intertie Participants Group ("IPG”)at its last meeting directed me,as chairman,toformallyaskyoutodeterminewhetheryouareinaposition,without further legislative _authorization,to finance the Participants'share of the additional cost of these projects,either as =AIDEA or through AEA. If you determine that you are in a position to arrange for the joint financing of theParticipants'additional cost of these projects,the IPG would like to request that you take thosepreliminarystepswhicharenecessarytodeterminetheconditionsandcostsofthisjointfinancingoftheproject. The IPG is anxious to determine whether joint financing through AIDEA or AEA isanoptionandtherelativefinancingcostofthisoptiontotheParticipants.Please feel free tocontactmeifyouhaveanyquestionsorrequirefurtherinformationfromtheprojectParticipants. Sincerely yours, AL LIGHT &POWER a"? omas R.Stahr General Manager and Chairman,IPG TRS:Ika cc:Norm Story,HEA ° James N.Woodcock,MEA Dave Calvert,City of Seward Vince Mottola,FMUS Robert Hufman,AEG&T Gene Bjornstad,CEA Mike Kelly,GVEA Lo Putting Energy Into Anchorage et |-4g)bye beer Tire GCLoOEN YALLEY ELECTFUC ASSOCIATION INC.Box 71249,Fairbanks,Alaska 99707-1249,Phone 907-452-1151 June 7,1994 VIA TELEFAX Tom Stahr,IPG Chairman Municipal Light &Power SonRE:Legal Services Tom,I believe it important before Fyiday's meeting to clarify legal roles in IPG matters.No lawye¢#represents the IPG in any matter.Each partiipant retains its/own counsel. I suggest the following regarding the Grant Administration Agreement and have been assured/by AIDEA that this is theirpreferencetoavoidanyconfusfion.Ron Saxton's firm,whorepresentsGVEA,the Northern Intgrtie Contractor and recipient of Grant funds for the Northern Intlertie,will be responsible fordraftingdutiesandcontactwithJRubini.They will coordinateobtainingandincorporatingcommentsfromtheIPGutilities including setting meetings and deadlines.I have instructed them to work with the utilities and John to wrap up this agreement as soon as possible.Ron will ai se6f8.A prrgre>ep Fhidany,V0 d I suggest the following regarding the Construction Agreement.RonSaxton's firm will be responsible for drafting duties and will coordinate obtaining and incorporating comments from the utilitiesincludingsettingmeetingsanddeadlines.I have also asked them to work with the utilities to wrap up this agreement as soon aspossible.Ron will circulate the latest draft Wednesday 6/8. Regarding payment for legal services,it is my understanding thatIPGhasnottodateauthorizedanylegalworkonitsbehalforpaymentSy-EPG for any legal services and that each utility isliableforthepaymentofitsrespectiveattorney(s).Regardingpaymentfortravel,experts,staff and others involved in IPG,itisalsomyunderstandingthatIPGhasnotauthorizedanypaymentfortheseactivitiesandthattothisdateeachutilityisliable for its costs.I assume that there have been no commitments regarding reimbursement.JI support a conservative position in ch Benrascey GOLDEN VALLEY ELECTRIC ASSOCIATION INC. ¢ Yom Stahr,IPG Chairman Subject:Legal Services June 7,1994 Page 2 these matters and trust that in future decisions we attempt (in the spirit of GVEA's low "overhead”offer)to keep bureaucratic drag on this project to an absolute minimum. fom,if there is any disagreement with the above,we should discuss it Friday. Best regareds, Michael P.Kelly General Manager cc:IPG Members Riley Snell,AIDEA Ron Saxton GOLDEN VALLEY ELECTRIC ASSOCIATION,INC. Office of the General Manager P.O.Box 71249 Fairbanks,Alaska 99707-1249 FAX:907-451-5633 PHONE:907-452-1151 FACSIMILE TRANSMISSION COVER SHEET DATE:June 7,1994 PLEASE DELIVER TO: NAME:Riley Snell ORGANIZATION:AIDEA FAX #561-8998 PHONE # FROM:Mike Kelly NUMBER OF PAGES INCLUDING COVER SHEET:3 Please call (907)452-1151,Ext.203 if you do not receive the number of pages listed. COMMENTS /SPECIAL INSTRUCTIONS: erst tifeo ee Aar.)¥LAW OFFICES BiRCH,HORTON,BITTNER AND CHEROT 1127 WEST SEVENTH AVENUE *«ANCHORAGE,ALASKA 99501-3563 « THOMAS L.ALBERT't? THOMAS P.AMODIO J.GEOFFREY BENTLEY* RONALD G.BIRCH** WILLIAM H.BITTNER KATHRYN A.BLACK PHILIP BLUMSTEIN CORY R.BORGESON DOUGLAS S.BURDIN® JORN J.BURNS SUZANNE CHEROT JOHN J.CONNORS KIM DUNN RALPH V.ERTZ JOSEPH W.EVANS WILLIAM P.HORN* HAL R.HORTON STEPHEN H.HUTCHINGS ROY S.JONES,JR.* MARC W.JUNE BRAD S.KANE CRISTINA D.LEE STANLEY T.LEWIS LESLIE LONGENBAUGH RONALD W LORENSEN L.MERRILL LOWDEN ANNE E.MciINEANEY'$ GREGORY A.MILLER GAIL A.OBA MICHAELJ.PARISE TIMOTHY J.PETUMENOS ELIZABETH A.PHILLIPS GLEN PRICE MICHAEL V.REUSING ELISABETH H.ROSS** JONATHAN B.RUBINI E.BUDD SIMPSON STEPHEN F.SORENSEN JONATHAN K.TILLINGHAST JEFFERY D.TROUTT OD.KEVIN WILLIAMS JOSEPH E.WRONA SUSAN E.WUORINEN# JOSEPH A.WEBER ANNE W.YATES* Ron Beet fa bvin A PROFESSIONAL CO OF COUNSEG JOHN J.RHODES 100 CUSHMAN STREET,SUITE 311 Alaska tndustrial Development TELECOPIER (907)586-9814 #OHIO BAR FAIRBANKS,ALASKA,99701-4672 'ONE SEALASKA PLAZA,SUITE 301 spe ean and Export Authority °ARIZONA BAR RPORATIONmyiriy=;(907}{2 1 Ofe LECOPIER (907)276-3680WYUk (907)452-1666 JUNEAU,ALASKA 99601-1293 **D.C.AND ALASKA BAR +VIRGINIA BAA KEY BANK BUILDING a1MAY191994 TELECOPIER (907)456-5055 (907)586-2890 t MARYLAND BAR ALL OTHERS ALASKA BAR 1155 CONNECTICUT AVE.,N.W. SUITE 1200 WASHINGTON,D.C.20036-4308 (202)658-5800 TELECOPIER (202)659-1027 STEPHEN K.GAFIONER® WRITER'S DIRECT DIAL NO.(907)263-7220 WRITER'S DIRECT "FAX"NO. May 18,1994 (907)276-3680 Mr.William R.Snell Mr.Dan Beardsley Alaska Industrial Development and Export Authority 480 West Tudor Road Anchorage,AK 99503 Re:Grant Administration Agreement Our File No.503,357.59 Gentlemen: I enclose a letter and proposed Attachment A which I received from Roger Kemppel in connection with the Grant Administration Agreement.I believe the proposed text revisions are acceptable.While the concept of block funding for Phase I is consistent with the discussions among counsel,I anticipated receipt of at least a preliminary allocation among the general categories set out in Section 2(b)of Schedule A-1.Roger Kemppel agreed to furnish a letter which allocates the $6.5 million among these activities.I also anticipate receipt of clarification from Roger relating to the timing of certain actions,most notably the release to fabricate of long lead-time items,in relation to the time which the utilities enter into binding financing commitments for funds needed to complete the project. Please advise whether you concur that a Phase I budget of $6.5 million is acceptable.(The allocation of the $6.5 million to be furnished by supplemental letter is intended as budgeting targets which would be presumably subject to IPG review and BIRCH,HORTON,BITTNER AND CHEROT A PROFESSIONAL CORPORATION Mr.William R.Snell Mr.Don Beardsley May 18,1994 Page 2 modification.)Assuming your concurrent with the $6.5 millionlimitforPhaseIactivities,I believe the Agreement is in suitable form for execution once Schedule B is in place. Please call if you have questions or comments. Sincerely, BIRCH,HORTON,--aan CHEROTAfro).;nye oc BonJonathanB.Rubini JBR:ke aEnclosuresa F:\AIDEA\ENERGY \KAE2135 LAW OFFICES OF KEMPPEL,HUFFMAN AND GINDER A PROFESSIONAL CORPORATION ROGER R.KEMPPEL 255 &.FIREWEED LANE.SUITE 200 RICHARD R.HUFFMAN PETER C.GINDER ANCHORAGE.ALASKA 99503-2094 DONALD C.ELLIS R F TELEPHONE (907)277-1604CEIVED:(907)276-2493ANDREWJ.FIERRO May 9,1994GEORGES.HARRINGTON JR. BOBBY DEAN SMITH MAY 1 1 1994 8IRCH,Jonathan B.Rubini,Esq.TOON,BITTNER ¢Birch,Horton,Bittner &Cherot T 1127 W.Seventh Avenue Anchorage,AK 99501 VIA FAX:276-3680 Re:Alaska Industrial Development &Export Authority Grant Administration Agreement Dear John: The attorneys for the participating utilities have reviewed the latest (April 19,1994)draft of the Grant Administration Agreement which you prepared.With one minor addition,and subject to your concurrence with the attached Schedules A,we are prepared to begin the process ofgettingthisagreementexecutedbythevariousparticipatingutilities. The minor change to the April 19,1994 draft involves revising the second sentenceofSection5.01 to read: The Participating Utilities,through the IPG,agree to have performed annual audits as required by 2 AAC 45.010 on the departments,agencies,or establishments of that entity which actually received,spent,or otherwise administered the grant funds,and to submit to the state coordinating agency,.... This additional language is consistent with the option provided in 2 AAC 45.010(g)and makes itclearthatAIDEAisnotgoingtoaudittheentireoperationsoftheParticipatingUtilitiesbutonlythatpartdealingwiththeprojectandgrantfunds.I doubt that AIDEA would ever wish to take on such an undertaking in any case. In addition,we wish to insert in Section 4.05 after the phrase "all books and records"the following: (except those protected by law or court rule,such as attorney-client or work product privilege). This phrase simply intends to preserve the attorney-client privilege if at all possible. Finally,I believe there is a typographical error in Section 3.01(b)wherein the reference to Section 2.03(d)should be 2.03(c). Enclosed are two proposed Schedules A which are attachments to the Grant Administration Agreement.Schedule A-1 addresses the northern intertie,and Schedule A-2 addresses the southern intertie.While both Schedules A-1 and A-2 propose a ceiling for Phase I of Jonathan B.Rubini,Esq. May 9,1994 Page 2 the interties,they do not propose a ceiling for the next phase until we have gone through theprecedingphase.This is because it is very difficult to accurately estimate a ceiling for the nextphaseuntilwehavecompletedthepreviousstageandhavebetterdesigndataandengineeringestimates.Under this plan,before the end of each phase AIDEA and the IPG would mutuallyagreeuponaceilingforthenextphasebeforegrantfundscouldbedrawndownforactivitiesin that next phase. Finally,a Schedule B still needs to be produced which makes it clear that the IPGcanauthorizetheexpenditureofgrantfundsduringPhaseIandduringPhaseII(subject to anagreementbetweentheIPGandAIDEAofanacceptableceilingforPhaseII)and that further "limits the expenditure of intertie funds until the applicable Participating Utilities have demonstrated their ability to raise all additional amounts needed to complete the construction of their respective interties." The IPG has approved the above documents and is prepared to begin the process of obtaining the execution of these documents by all of the Participating Utilities as soon as they have final documents acceptable to AIDEA.If the above changes and schedules are acceptable toAIDEA,I would appreciate it if your office would prepare 12 duplicate originals and transmit them to me as soon as possible so that I can begin the process of obtaining signatures.If you feel that we need another teleconference to further discuss this agreement,please let me know,and I will try to set up a teleconference of all of the attorneys involved as quickly as possible. Sincerely yours, KEMPPEL,HUFFMAN AND GINDER,P.C. Roger R.Kemppel RRK:lka Enclosures:Proposed Schedules A-1 and A-2 cc w/encls via fax:Ron Saxton (503)226-0079 Adam Gravley (205)623-7022 Charlane Stead (907)459-6761 Don Edwards (907)762-4688 Eric Redman (206)623-7022 SCHEDULE A-1 HEALY-FAIRBANKS INTERTIE 1.PHASE DESCRIPTION Phase I -Design Phase II -Procurement Phase III -Construction These phases will be conducted sequentially.However,efficient performance will dictate some overlapping of phases. 2.PHASE]-DESIGN a.The PhaseI ceiling shall be $6.5 million. b.Phase I includes the project permitting,engineering,and design including both project definition and detailed design activities.Specifically,Phase I shall include: (1)Environmental Assessment °DVG Survey System e Archaeological Investigation (2)Line -Engineering and Design °Geotechnical °Easements and Land Rights (3)Substation Design (4)Energy Storage System Design °System Studies for Scoping (5)APUC and/or REA Approval (6)Develop Finance Plan 3.PHASE II -PROCURE AND CONTRACTIN a.Phase II ceiling shall be $Jl b.Phase II shall include the solicitation of bids for project work and materials,material procurement,fabrication,testing,and shipment and all other non-job site activitiesassociatedwithdeliveryofmajorequipmentitems. 1 To be determined at the end of Phase I. c.Phase II shall also include completion of process to obtain any necessary APUC orREAapprovalsandcompletionandapprovalbytheIPGandAIDEAofaprojectfinanceplanforanyamountsinexcessofgrantfunds. d.Specifically,Phase II shall include: (1)Transmission Line Bids °Major Equipment e Construction Labor Contracts °Right-of-Way Clearing Bids (2)Substation Bids °Major Equipment °Construction Labor Contracts (3)Energy Storage System Fabrication 4.PHASE III -CONSTRUCTION a.Phase III ceiling shall be $2 b.Phase III shall include receipt of equipment and materials at the job sites and site management for its installation,checkout,and start-up. c.Specifically,Phase III shall include: (1)Transmission Line Construction Link 1 Link 2 Link 3 Link 4 Link 5 Construction Management Right-of-Way Clearing (2)Substation °Wilson Substation Healy Substation °Construction Management (3)Energy Storage System Installation 2 To be determined at the end of Phase II. SCHEDULE A-2 ANCHORAGE-KENAI INTERTIE 1.PHASE DESCRIPTION -Anchorage-Kenai 138 kV Intertie ($84.1 Million) Phase I -Route Selection and Preliminary Design Phase II -Design Phase II -Construction 2.PHASE I -ROUTE SELECTION &PRELIMINARY DESIGN a.The Phase I ceiling shall be $5.1 million. b.Phase I includes the following: Development and Approval of Project Team Preliminary Environmental Assessment Preliminary Geotechnical and Archaeological Investigation Preliminary Easement Investigation Identify Corridors,Determine Alternate Route Alignments Prepare Route Selection Report Investigate Design Alternatives Approval of Line Route and Preliminary Design 3.PHASE II -DESIGN a.The Phase II ceiling will be $_.Jl b.Phase II includes the completion of the following tasks: Final Environmental,Geotechnical,and Archaeological Investigations Selection of Final Route Procurement of Easements Design Modifications to Bernice Lake Substation Design Submarine Cable Terminal Stations Design Submarine Cable Crossing Specifications Preparation of Functional Design,Drawings,and Specifications Preparation of Construction and Material Contracts 1 To be determined at the end of Phase I. 4.PHASE III -CONSTRUCTION a.The Phase III ceiling shall be $2 b.Phase III includes contract bid and awards for equipment andmaterialsandconstructionmanagement. Cc.Phase III includes completion of the following: Right-of-Way Clearing Transmission Line Construction °South Kenai Line °North Kenai Line °Anchorage Line °Modification of Bernice Lake Substation °Submarine Cable Terminal Stations °Submarine Cable Crossing °Commissioning and Project Closeout 2 To be determined at the end of Phase II. cy \LAW OFFICES” BIRCH,HORTON,BITTNER AND CHEROT A PROFESSIONAL CORPORATION -1127 WEST SEVENTH AVENUE *ANCHORAGE,ALASKA 99501-3563 ©TELEPHONE (907)276-1550 »TELECOPIER (907)276-3680 THOMAS L.ALBEAT*tt WILLIAM #.HORN'TIMOTHY J.PETUMENOS OF COUNSEL THOMAS FP.AMOOIO HAL A.HORTON ELIZABETH A.PHILLIPS -JOHN J.RHOOES.Wie -- J.GEOFFREY BENTLEY”STEPHEN +.HUTCHINGS GLEN PRICE RONALD G.BIRCH'*ROY S.JONES.JA.*MICHAEL V.REUSING WILLIAM H.BITTNER MARC W.JUNE ELISABETH MH.ROSS” KATHRYN A.BLACK BAAD S$.KANE JONATHAN B.RUSINI PHILIP BLUMSTEIN CRISTINA O.LEE CORY A.BORGESON STANLEY T.LEWIS: OOUGLAS 8.BUADIN®LESLIE LONGENBAUGH JOHN J.BUANS RONALD W.LORENSEN E.BUDD SIMPSON STEPHEN F.SORENSEN JONATHAN K.THLINGHAST *0.6.BAR JEFFERY 0.TROUTT **0.C.ANO ALASKA BAR KEY BANK BUILDING {00 CUSHMAN STREET,SUITE 311EGEIVE|)tees APR 2014 SNE SEALASKA PLAZA,SUITE 301 JUNEAU,ALASKA 90801-1293 (907)586-2890 SUZANNE CHEROT L.MERRILL LOWDEN 0.KEVIN WILLIAMS t MARYLAND GAR '"eons (907)580-9616JOHNJ.CONNORS ANNE €.McINERNEY'S JOSEPH E.WAONA ©OHO BAR a trial Develoomen KIM OUNN GREGORY A.MILLEA SUSAN &.WUORINEN®©ARIZONA 'Alaska Indus p 1158 CONNECTICUT AVE..NW. RALPH V.EATZ GAIL A.OBA JOSEPH A.WEBER $Vinaiwa earn JOSEPH W.EVANS MICHAEL J.PARISE STEPHEN K.GARONER®: uo ANNE W.YATES*ALL OTHERS ALASKA 6. April 19,1994 VIA _TELE Y AND U.S.MAI Ronald L.Saxton,Esq. Ater Wynne Hewitt Dodson &Skerritt 222 S.W.Columbia Street,Suite 1800 Portland,Oregon 97201-6618 Re:Grant Administration Agreement Dear Ron: and Expert Authority SUITE 1200 WASHINGTON,D.C.20036-4308 1202)6$9-5800 TELECOPIER (202)659-1027 WRITER'SDIRECTDIALNO.(907)263-7220 WRITER'S DIRECT *FAX*NO.(907)276-3680 I enclose a revised Grant Administration Agreement which .includes minor revisions to Sections 4.03(b)and (c).Valorie Walker is assembling information on the cost desirability of a third-party investment advisor,which I anticipate will heavailablewithinthenextseveraldays. colleagues. Would you please circulate this revised draft among your I look forward to receipt of your proposed Schedule A at your convenience.Please call if you have any questions. Sincerely, BIRCH,HORTON,BITTNER and CHEROT | By: JBR:ke Enclosure cc:Mr.William R.Snell (w/enc.) Fs \AIDEA\ENERGY \KAE2053 Jofiathan B.Rubini GRANT ADMINISTRATION AGREEMENT THIS AGREEMENT (the "Agreement")is made and entered into this ___-s day of November,1993,by and between the ALASKA INDUSTRIAL DEVELOPMENT &EXPORT AUTHORITY ("AIDEA"),GOLDEN VALLEY ELECTRIC ASSOCIATION,INC.("GVEA"),FAIRBANKS MUNICIPAL UTILITIES SYSTEM ("FMUS"),ANCHORAGE MUNICIPAL LIGHT AND POWER ("ML&P"), CHUGACH ELECTRIC ASSOCIATION,INC.("CEA"),ALASKA ELECTRIC GENERATION AND TRANSMISSION COOPERATIVE,INC.("AEG&T")on behalf of its members (Matanuska Electric Association,Inc.and Homer Electric Association,Inc.),and the CITY OF SEWARD ("Seward") (ML&P,CEA,AEG&T and Seward hereinafter collectively referred to as the "Southern Participating Utilities";GVEA and FMUS hereinafter collectively referred to as the "Northern Participating Utilities";the Southern Participating Utilities and the Northern Participating Utilities hereinafter collectively referred to as the "Participating Utilities"). RECITALS WHEREAS,pursuant to Section 1 ch.19,SLA 1993,the Legislature appropriated $43,200,000 to the Department of Administration ("DOA")for payment as a grant under AS 37.05.316 to GVEA for the purpose of constructing a power transmission intertie between Healy and Fairbanks ("Healy-Fairbanks Intertie")to benefit all utilities participating in the intertie;and Grant Administration Agreement:April 19,1994,Draft Page 1 ; WHEREAS,pursuant to Section 2 of ch.19,SLA 1993 (Sections 1 and 2 of ch.19,SLA 1993 hereinafter referred to as the "Intertie Appropriation"),the Legislature appropriated $46,800,000 to DOA for payment as a grant under AS 37.05.3116 to CEA for the purpose of constructing a power transmission intertie between Anchorageand the Kenai Peninsula ("Anchorage-Kenai Intertie")to benefit all utilities participating in the intertie (the two intertie appropriations are hereinafter collectively referred to as the "Intertie Grants");and WHEREAS,pursuant to Section 1(b)and (c)and Section 2(b)and (c)of the Intertie Appropriation,DOA,AIDEA,and the Participating Utilities were to enter into a written agreement satisfying certain statutory conditions precedent to DOA's transfer of the Intertie Grants;and - WHEREAS,in "order.to satisfy such requirement,DOA, AIDEA,and the Participating Utilities have entered into an Intertie Grant Agreement (the "Intertie Grant Agreement"),which among other things,provides that the Intertie Grants are to be transferred to AIDEA for the benefit of the Participating Utilities,and that certain conditions are to be met prior to AIDEA releasing any of the grant funds to the Participating Utilities; and Grant Administration Agreement:April 19,1994,Draft . Page 2 o WHEREAS,also as part of the Intertie Grant Agreement, the Participating Utilities have agreed to form an Intertie Participants Group ("IPG")to,among other things,oversee the construction of the interties and address grant expenditure matters;and WHEREAS,pursuant to the Intertie Grant Agreement,DOA and AIDEA have entered into a Grant Transfer and Delegation Agreement ("Grant Transfer Agreement")whereby the Intertie Grants were transferred to AIDEA to act as custodian and administrator of the Intertie Grants;and WHEREAS,Section 7 of the Intertie Grant Agreement requires that AIDEA and the Participating Utilities enter into a Grant Administration Agreement which shall set forth the terms and conditions to be satisfied by the Participating Utilities in order - for there to be a disbursement of the Intertie Grants,and which _shall also provide for AIDEA's obligations with respect to the Intertie Grants. AGREEMENT NOW,THEREFORE,in consideration of the recitals above (which are hereby incorporated into and shall be deemed part of this Agreement),and of the covenants and agreements hereinafter Grant Administration Agreement:April 19,1994,Draft Page 3 set forth,it is agreed by and between the parties hereto as follows: Section 1.Custodian and Administrator.The parties acknowledge that pursuant to the Grant Transfer Agreement,DOA has delegated all its powers and duties with respect to the administration of the Intertie Grants to AIDEA and that the Intertie Grants have been transferred from DOA to AIDEA for the benefit of the Participating Utilities.The Participating Utilities have requested that AIDEA serve as custodian and administrator of the Intertie Grants.AIDEA hereby accepts such appointment and agrees to act as custodian and administrator of the Intertie Grants for the benefitof the Participating Utilities, -subject to the terms and conditions of,and authority and powers granted by,this Agreement and applicable law,including but not limited to those statutes and regulations applicable to the administration of grants to named recipients under AS 37.05.316 by the DOA. Section 2.Custody/Investment of Grant Funds. 2.01.Appropriation Accounts.AIDEA shall establish two appropriation accounts to account for and to disburse the Intertie Grants.One account shall be designated the "Healy- Fairbanks Intertie Account"which shall be comprised of the Grant Administration Agreement:April 19,1994,Draft Page 4 , $43,200,000 appropriation made by Section 1 of the Intertie Appropriation and all interest and other income to be earned thereon.The other account shall be designated the "Anchorage- Kenai Intertie Account"which shall be comprised of the $46,800,000 appropriation made by Section 2 of the Intertie Appropriation and all interest and other income to be earned thereon (the monies collectively comprising the Healy-Fairbanks Intertie Account and the Anchorage-Kenai Intertie Account hereinafter referred to as the "Intertie Funds").AIDEA shall have the authority to create and designate subaccounts for these two accounts as it deems necessary from time to time. 2.02.Institutional Custodian.In order to carry out its custodial duties under this Agreement,AIDEA may designate and hire one or more institutional trustees to act as custodian for all or any portion of the Intertie Funds and any securities which such funds may be invested in.Such institutional custodian shall hold the Intertie Funds and any securities subject to the terms and conditions of this Agreement and applicable law.AIDEA shall ensure that any institutional custodian provide the appropriate procedures to separately account for the monies,and interest and other income earned thereon,in each of the intertie accounts 'established pursuant to Section 2.01. Grant Administration Agreement:April 19,1994,Draft Page 5 2.03.Investment of Intertie Funds. (a)Generally.AIDEA shall develop and implement an investment strategy (the "Investment Strategy")in cooperation with GVEA and CEA for the investment of the Intertie Funds.In developing the Investment Strategy,AIDEA may also consult with and hire the services of professional investment advisers.AIDEA is hereby authorized,on behalf of the Participating Utilities,to make,execute,acknowledge and deliver any and all documents or instruments that may be necessary or appropriate,to exercise all other rights and powers,and to take all appropriate actions which it deems necessary,to implement the Investment Strategy. (b)Limitations.The Investment Strategy shall be consistent with the principles set out in AS 37.10.071.Investment of the Intertie Funds shall be limited to United States Treasury debt obligations,or obligations insured by or guaranteed by the United States or agencies or instrumentalities of the United States.The Investment Strategy shall take into consideration the cash flow needs of the Participating Utilities.The IPG shall submit to AIDEA a schedule for the use of grant funds,and any amendments or changes thereto as necessary from time to time,to assist AIDEA in developing the Investment Strategy. Grant Administration Agreement:April 19,1994,Draft Page 6 (c)Institutional Investor.In order to implement the Investment Strategy,AIDEA may designate and hire either the institutional custodian hired pursuant to Section 2.02 or another institutional entity to invest the Intertie Funds pursuant to the Investment Strategy,the terms and conditions of this Agreement and applicable law.AIDEA shall provide the necessary direction to provide for the investment of the Intertie Funds. Section 3.Use of Intertie Funds. 3.01.Healy-Fairbanks Intertie Account.Monies in the Healy-Fairbanks Intertie Account and any designated subaccounts of such account shall only be used for the following purposes: (a)all costs reasonably related to the design, permitting,and construction of the Healy-Fairbanks Intertie; , (b)to pay the costs associated with any institutional custodian and/or investor hired pursuant to Sections 2.02 and 2.03(d);and (c)to pay the costs associated with any professional investment adviser hired pursuant to Section 2.03(a). Grant Administration Agreement:April 19,1994,Draft Page 7 , 3.02..Anchorage-Kenai Intertie Account.Monies in the Anchorage-Kenai Intertie Account and any designated subaccounts of such account shall only be used for the following purposes: (a)all costs reasonably related to the design, permitting,and construction of the Anchorage-Kenai Intertie; (b)to pay the costs associated with any institutional custodian and/or investor hired pursuant to Sections 2.02 and £2+03(d}}2.03(c); and (c)to pay the costs associated with any professional investment adviser hired pursuant to Section 2.03(a). 3.03.Unexpended Funds. (a)Project Completion.Any monies remaining in either the Healy-Fairbanks Intertie Account or.the Anchorage Kenai Intertie Account at the completion of the respective intertie Grant Administration Agreement:April 19,1994,Draft Page 8 project and payment of all outstanding obligations for the applicable project shall be returned to DOA and deposited in the State General Fund. (b)No Construction of Project.As required by Section 7 of the Intertie Grant Agreement,in the event the IPG notifies AIDEA that one or both of the intertie projects will not be constructed,the monies in the account associated with the respective intertie,after the payment of all outstanding obligations,shall be returned to DOA and deposited in the State General Fund. (c)Unreasonable Delay of Projects.As required by Section 2.4(b)of the Grant Transfer Agreement,in the event that AIDEA determines,in its reasonable discretion,that development of either intertie project is unreasonably delayedby the affected Participating Utilities,the unobligated and unexpended monies in the account associated with the respective intertie shall be returned to DOA and deposited in the State General Fund.AIDEA shall give fifteen (15)days prior notice of such decision to the affected Participating Utilities. Section 4.Disbursement of Intertie Funds.Except for the payments of costs incurred by the Authority under Sections 3.01(b),3.01(c),3.02(b),and 3.02(c),any disbursement,release, Grant Administration Agreement:April 19,1994,Draft Page 9 . encumbrance,assignment or pledge (hereinafter collectively referred to as "disbursement"for purposes of this Section4)of the Intertie Funds from the intertie accounts shall be subject to the procedures,conditions precedent,and limitations/ceilings set forth in this Section 4. 4.01.Conditions Precedent.The disbursement of Intertie Funds for the purposes described in Section 3.01(a)and 3.02(a)is not permitted until the following conditions precedent have been satisfied by the Participating Utilities: (a)the Participating Utilities have entered into and executed a Participation Agreement,in a form satisfactory to AIDEA,as required by and in accordance with the Intertie Grant Agreement and Section 2.4(c)of the'Grant Transfer Agreement,and transmitted a copy of the signed and executed agreement to AIDEA; and (b)the Participating Utilities have determined and agreed upon which contractual obligations related to the Intertie -Grants and Intertie Funds must be submitted to the Alaska Public Utilities Commission for its review and approval,and provided written notice to AIDEA of such determination and agreement. Grant Administration Agreement:April 19,1994,Draft Page 10 4.02.Disbursement Schedules.Any disbursement of the Intertie Funds shall be subject to the limits and ceilings set forth in this Section 4.02. (a)Project Phases Ceilings.The Schedule A,which is attached to and hereby incorporated into this Agreement,and has been approved by AIDEA and the IPG,sets forth certain dollar ceilings for the various phases of development for each of the intertie projects.No disbursement of Intertie Funds for each of the respective interties which exceeds the established ceilings set forth in Schedule A shall be permitted.The parties agree that the IPG is authorized to request amendments to Schedule A,subject to AIDEA's approval,to provide for upward adjustment only of the ceilings set for the project phases.The IPG shall submit any requests foramendments to Schedule A to AIDEA in writing.The submittal shall include appropriate findings and an explanation as to why the existing ceiling is not sufficient.AIDEA agrees to consider any request for amendment within fifteen (15)days of the receipt of such request.No amendment shall be effective until approved by AIDEA. (b)Grant Transfer Agreement §2.4(e)Schedule. Pursuant to Section 2.4(e)of the Grant Transfer Agreement,the attached Schedule B,which is hereby incorporated into this Agreement,sets forth a schedule which limits the expenditure of Grant Administration Agreement:April 19,1994,Draft Page 11 ' Intertie Funds until the applicable Participating Utilities have demonstrated their ability to raise all additional amounts needed .to complete construction of their respective interties.No disbursement of Intertie Funds for each of the respective interties which exceeds the established ceilings set forth in Schedule B shall be permitted for a specific intertie until the affected Participating Utilities (either the Northern Participating Utilities or the Southern Participating Utilities)have demonstrated,to the satisfaction of AIDEA,the ability to raise all additional amounts necessary to complete construction of their respective intertie. 4.03.Disbursement Procedures.Subject to the conditions,limitations,and ceilings set forth in Sections 4.01 and 4.02,and the terms and conditions of this Agreement, disbursement of the Intertie Funds shall be subject to the following procedures: (a)All invoices shall be initially submitted to the IPG for its review and approval. (b)After IPG review and approval,the IPG shall submit,on a monthly basis all approved invoices to AIDEA for payment.Each invoice shall be referenced to a particular intertie project and a specific phase for that project to allow AIDEA to Grant Administration Agreement:April 19,1994,Draft Page 12 ; properly charge the invoice against the appropriate project and to determine if payment is authorized pursuant to the Intertie Appropriation or the disbursement schedules set forth in Section 4.02.AIDEA may request further documentation or explanation with respect to any invoice and is authorized to withhold payment until documentation,acceptable to AIDEA,is submitted. . (c)If payment of an invoice is authorized in accordance with (b),AIDEA shall pay such invoice within fifteen (15)days of receipt of the invoice. Section 5.Audit Requirements. 5.01.General.The parties acknowledge that the audit requirements of2 AAC 45.010 apply to the Intertie Grants, Intertie Funds,and the use of such monies for the purposes set forth in this Agreement.The Participating Utilities,through the IPG,agree to have performed annual audits as required by2 AAC 45.010,and to submit to the state coordinating agency,as such term is defined in 2 AAC 45.010(0)(4),separate audit reports,as required by and in accordance with 2 AAC 45.010,on an annual basis,for both the Healy-Fairbanks Intertie project and the Anchorage-Kenai Intertie project.Each audit and the resulting audit report shall cover the preceding year,and the audit report shall be submitted no later than of each year, Grant Administration Agreement:April 19,1994,Draft Page 13 beginning on .A copy of each audit report shall be transmitted to AIDEA at the same time each audit report is transmitted to the state coordinating agency.The Participating Utilities shall also submit copies to the state coordinating agency to the extent required by 2 AAC 45.010(h). 5.02.Audit Standards and Report Contents.The audits required by Section 5.01 shall be conducted by an independent auditor in accordance with the audit standards set forth in 2 AAC 45.010(c).The audit reports shall address at a minimum the items set forth in 2 AAC 45.010(d)through (g). 5.03.Additional Requirements.The audits and audit reports required by this Section 5 shall comply fully with all requirements imposed by 2 AAC 45.010,and any amendments or modifications thereto,regardless of whether such requirements are specifically set forth in this Agreement.In addition,the Participating Utilities shall ensure that the requirements of 2 AAC 45.010(j)are satisfied by any applicable third party recipients. 5.04.Books and Records.In addition to complying with the audit.requirements of Sections 5.01-5.03,the Participating Utilitiesand the IPG shall permit AIDEA to have reasonable access upon request to all books and records related to Grant Administration Agreement:April 19,1994,Draft Page 14 the (a)design,permitting and construction of the interties;(b) Intertie Grants;and (c)Intertie Funds. Section 6.Waiver of Liability/Indemnification. 6.01.Waiver of Liability/Indemnification on Custodial/Investment Duties.The Participating Utilities,and all their successors and assigns,hereby waive and release AIDEA,and all its officers,directors and employees,from any and all claims and liabilities of any nature and kind whatsoever which are related to or may arise out of AIDEA's obligations and dutiesas custodian and investor under this Agreement,except those which may arise from the gross negligence or willful misconduct of AIDEA.The participating Utilities agree to and shall indemnify,defend and hold harmless AIDEA,and all its officers,directors and employees, from and against,any and all demands,claims,causes of action, losses,fines,penalties,judgments,damages (including punitive and consequential damages),or liabilities of any nature and kind whatsoever (including attorney's fees,and other legal fees and expenses)incurred in connection with or resulting from or arising out of or in any way related to AIDEA's obligations and duties as custodian and investor under this Agreement,except those which may arise from the gross negligence or willful misconduct of AIDEA. Grant Administration Agreement:April 19,1994,Draft Page 15 6.02.Indemnification on Contractor Claims.The Participating Utilities agree to and shall indemnify,defend and hold harmless AIDEA,and all its officers,directors and employees, from and against,any and all demands,claims,causes of action, losses,fines,penalties,judgments,damages (including punitive and consequential damages),or liabilities of any nature and kind whatsoever (including attorney's fees,and other legal fees and expenses)incurred in connection with or resulting from or arising out of or in any way related to the design and construction of the interties,which may be asserted against AIDEA,or its officers, 'directors or employees,by any contractor,subcontractor, consultant,or third party or entity. Section 7.Miscellaneous/General Terms. 7.01.No Third-Party Beneficiaries.Nothing in this Agreement shall be interpreted or construed as creating any rights or privileges of any kind whatsoever in persons or entities who are not parties to this Agreement. 7.02.Applicable Law and Venue.This Agreement shall be construed under the laws of the State of Alaska and any dispute shall be resolved in the Superior Court for the State of Alaska,Third Judicial District,at Anchorage,Alaska. Grant Administration Agreement:April 19,1994,Draft Page 16 7.03.No strict Construction.This Agreement was Grafted in accordance with the wishes of all parties and after negotiation and discussion between all parties,and all parties have been represented by counsel in such negotiations.The rule of construction that a contract shall be construed against the party who drafted it shall not apply to construction of this Agreement. 7.04.Counterparts.This Agreement may be executed in counterparts,in which case all such counterparts'shall constitute one and the same Agreement. 7.05.Successorsand Assigns.This Agreement shall be binding upon the parties and their successors and assigns. 7.06.Modifications/Amendments.This Agreementmay not be modified or amended except by a writing signed by all the parties. 7.07.Captions/Headings.All captions and headings used in this Agreement are for the convenience of reference only and shall not be construed as part of the Agreement. IN WITNESS WHEREOF,the parties have caused this Agreement to be executed on the date first above written.| Grant Administration Agreement:April 19,1994,Draft Page 17 ALASKA INDUSTRIAL DEVELOPMENT &EXPORT AUTHORITY Grant Administration Agreement:April 19,1994,Draft Page 18 ra. F :\AIDEA\ENERGY\KAE2054 ALASKA ELECTRIC GENERATION AND TRANSMISSION COOPERATIVE,INC.on behalf of its members (Matanuska Electric Association,Inc.and Homer Electric Association,Inc.) Grant Administration Agreement:April 19,1994,Draft Page 19 GOLDEN VALLEY ELECTRIC ASSOCIATION INC.Box 71248,Fairbanks,Alaska 99707-1249,Phone 907-452-1151 March 1,1994 Del LaRue Dryden and LaRue,Inc. 6436 Homer Drive Anchorage AK 99502 Re:Cost Comparison for 138 kV vs.230 kV Construction Northern Intertie -Healy to Fairbanks Dear Del: The incremental cost comparison which was developed by Dryden and LaRue was presented to the Intertie Participants Group (IPG)at theFebruary24thmeeting.All of the IPG members were amazed,as youandIwere,that the incremental cost was so small. The IPG requested that you be present at the next IPG meeting to answer questions of this cost analysis.The next meeting is scheduled for March 31,1994 in Anchorage.If this date does not work for you,please call me.. I will try to forward IPG member questions which I receive in advance of the meeting.It may be helpful to provide answers to the questions in advance of the meeting.If you send the responses to me,I will FAX them to the IPG members.The following are questions which were raised at the IPG meeting.I will immediately forward any additional questions to you as soon as JI receive them. 1.How can the incremental foundation costs be zero when the wire will be approximately two foot higher and the tower will be approximately 10 feet taller? 2.How can the incremental tower below the "waist"costs be zero and expect to support the larger 230 kV top section?Won't astrongerbasesectionberequired?If so,shouldn't there beanincrementalcostrequiredforthisfutureconversion. 3.Is this an incremental estimate,one that starts at a 138 kVlineandcapturestheincrementalcostofconvertingto230kV,or is,it a decremental estimate which starts at 230 kv andidentifieswhatisnotneededifyoubuilda138kVline? Please review these questions and .provide any comments orclarificationsatyourearliestconvenience. Sincerely, Steven Haagenson Manager of Engineering Services NY Rearyscey GOLOEN VALLEY ELECTRIC ASSOCIATION ING.Box 71249,Fairbanks,Alaska 98707-1249,Phone 907-452-1151 March 3,1994 John Doudna Power Technologies Inc. 775 Sunrise Avenue Suite 210 Roseville CA 95661 Re:Location and Sizing of the Reactive Compensation for the Northern Intertie -Healy to Fairbanks Dear Del: The reasoning,location,and sizing for reactive compensation whichwaspreparedbyPowerTechnologiesInc.(PTI)was presented to theIntertieParticipantsGroup(IPG)at the February 24th meeting.During the IPG meeting,there was much discussion about the available options which meet the ASCC Planning criteria. The draft narrative and load flows are being reviewed by theutilitiestechnicalandplanningstaffsandwillattempttoprovideanyquestionsinadvanceofthenextIPGmeeting.I will forward any questions which I receive in advance of the meeting.It may behelpfultoprovideanswerstothequestionsinadvanceofthe meeting.If you send the responses to me,I will FAX them to the IPG members.The following options,reasons for sizing of eachcomponentHealy140MWnorthand130MWfromsouthcapacityconstraintsandcriticalcontingencieswerediscussedduringtheIPGmeeting 1.Fairbanks 60 Mvar SVC Nenana 40 Mvar SVC Igloo 60 Mvar SVC Teeland 25 Mvar Fixed Capacitors w/new transformer ad.Fairbanks 60 Mvar SVC Nenana °2 Mvar Minicomp (approximate size). Igloo 60 Mvar SVCTeeland25MvarFixed Capacitors w/new transformer 3.Fairbanks-60 Mvar SVCIgloo60MvarSVC Teeland 25 Mvar Fixed Capacitors w/new transformer Tie the existing and new lines together at New Nenana Sub 4.Fairbanks 60 Mvar SVC Move the Gold Hill Svc from tertiary to the 138 kV busIgloo60MvarSVC Teeland 25 Mvar Fixed Capacitors w/new transformer March 4,1994 VIA FAX TO; FROM: RE: Dave Colvert-City of Seward David Highers-Chugac:Electric Kenneth Ritchey-Mata.i:uska Electric Norman Story-Homer Electric Riley Snel1]-AIDEA Thomas Stahr-Municip.:1 Light and Power Vince Mottola-mMUuSs Steve Haagenson-GVEA Northern Intertie -Healy to Fairbanks td GOLOEN VALLEY ELECTRIC ASSOCIATION INC. John Doudna . March 3,1994 Page 2 Northern Intertie -Healy to Fairbanks -5.Fairbanks 60 MW/Mvar Battery Energy Storage System Igloo ?Mvar SVC Teeland ?Mvar Fixed Capacitors w/new transformer The IPG requested that you be available by phone at the next IPG meeting to answer questions on the reactive compensation analysis. The next meeting is scheduled for-approximately noon on March 31, 1994 in Anchorage.If this date does not work for you,please call me. Please review these questions and provide any comments orclarificationsatyourearliestconvenience. Sincerely, Zz gteven HaaqensonQANaAgeLrOLBIGLMeeL LuYy Jer viles eeee MUNICIPALITYOFANCHORAGE MEMORANDUM DATE:February 7,1994 TO:Railbelt Energy Storage Group FROM:Moe Aslam,Chief Engineer,ML&P SUBJECTS SMES MUUelling Mccting ML&P thanks GVEA,CEA and HEA for responses to our January 17 letter requesting inputs for the SMES studies. We would like to schedule a meeting at ML&P on February 23, 9:30 a.m.,to go over all comments and the list of generation/configuration scenarios,including contingencies for your concurrence.Please fax us your confirmation for February23,and then I'11l verify with each one of you over the phone. Oak Ridc2 National Labs (ORNL)staff may also be present at this meeting,since ORNL will be conducting the technical and Economic benefit analysis study for ML&P SMES application,with support and assistance from EPRI and ML&P. We look forward to a productive work session at the meeting inidentif-ing the cases for the study,and invite you to also bring other scaff members from your utilities,if you like. Distribution: llFasPekStangchkowekd/Dennis McRoen,AIDEA Jim Smith/Steve Haagenson,GVEA Jim Hall,MEA Mike Yerkes/Sam Matthews,HEA John Cooley,CEA Dave Burlingame,CEA Vince Motolla,FMUS Dave Calvert,,City of Seward John Stovall,ORNL Dr.Steve Kral,B&W Tom Stahr,MLEP MA-RE.doc Post-It™brand fax transmittal memo 7671 |tof pages >| Te i ry Fi*Staa DS:€¢c2 ows om hoe,fiscanmmDens(Kee ce Nie eCDent.Prove*262-5222. Fax #Fax®#oo (-8998