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Unalaska Schedules, Memos, Correspondence 8-91 - 3-92
UNALASKA GEOTHERMAL PROJECT FLOW CHART gene 2 bi oct -Coaynnncee .precicl >{Aleut Corp.|--landowner cog ethsalecncelitL.6 ote even of tnbrets Cte,-PracesagcitysNeelanate's Taduntuing|Battle Mt.Gold|--landowner é leak Svvertay'tc uve?lease preursers G ect bd Jed [kwh [Ormatt/OESI?|--leaseholder of geothermalmineralinterest West Fahd wate.104 etrmety,(Rod's|OFSI |--Project Manager On progress devel. Plew 4 Aree Oe|J |Tau t payersPlantSellerofGeneraloe%GPS Operator |AMOR 25 AMOR 26 |Geothermal Fluid AMOR 10 |Contractor {[Makushin J Plant Sale of Construction Management geothermal Contract contract resource contract |AEA [AEA |-Owner of plant/-Beck [electrical consultant] Financier of AEA j|-Nuveen [investment banker] project.-Geotex {geothermal consultant] Power Sales Agreement Financing Financing Purchaser of wholesale power. Seller of retail power. Operator of some distribution facility. City of Unalaska Legislature or Bond-holders Dept.of Revenue Retail sales Industrial sales tariffs by "take or pay" contract. Residential UNISEA,ALYESKA, customers WSI WHERE THE MONEY COMES FROM AND WHERE THE MONEY GOES IndustrialCustomers |__|City Residential | Customers | Bond Purchasers-- -?Trustee State of AK |poAfDeptofRevenue AFA ¢Construction Fund PyCapitalReserverine Debt Service Fund«¢(1)ce)Renewal &Contingency Reserve Fund "7(9)Excess Investment Earnings Fund & U.S.Government Rebate were for ConstructionThirdParties Revenue Fund (1) A.Operating Fund 1 ESI for Operation (3)3) OESI for Fluid Fee 1.Operating Reserve UNALASKA RISK ALLOCATION ANALYSTS Parties --OESI AEA City Bondholder (B) Industrial Purchasers (IP) Residential Purchasers (RP) AMOR 10 Makushin (M) Alaska Geothermal Power System (GPS) Risk Circumstances 1)Dry Hole Construction started and abandoned Construction started but permits not received,construction completed but is technical failure. 2)Damp Hole )Completed but is technical failure. <88 MW 3)Wet Hole Decreasing Construction successfully completed to Damp Hole but useful life of project turns out <88 MW to be less than 30 years of output at expected MW levels. 4)Wet Hole becoming damp or dry due to: Earthquake - Design Defect Construction Defect Operational Error Non-Earthquake CasualtyOmWH ANALYSIS --1 Parties Bearing Risk AEA/OESI/B/AMOR 10 AEA/OESI/B/AMOR 10 City/IP/RP/AEA/B/M City/IP/RP/AEA/B/OESI/M Risk Circumstances 5)Reduced Demand from IPs. 6)Reduced Demand from RPs. 7)Construction cost Overruns 8)Operational cost Overruns ANALYSIS --2° Diminished fisheries resource,' diminished allocation to shore-based processors,diminished demand for product,unrelated corporate financial problems. Decrease in residents due to economic conditions. Decrease in electric use due to economic conditions or price charged for power. Unanticipated subsurface conditions, improper cost estimate preparation, changes in design. Inefficient management decisions, deficient operational cost estimates, unexpected increases in labor/materials costs. Parties Bearing Risk IP/City/RP/AEA/M/B City/RP/IP/AEA/M/B AMOR 10/OESI/AEA/City/IP/RP City/RP/IP Unalaska Geothermal Project Jack Templeton's Report -November 26,1991 The Alaska Energy Authority (AEA)is considering the feasibility of constructing a geothermal energy plant with the proceeds of a $67,000,000 bond sale to be repaid over 30 years. The plant would be complete in April 1994 and would provide a base annual power capacity of 88,000,000 kWh for the community.Peak power requirements would be provided by current generating equipment (diesel).In addition, businesses which generate their own electricity would be required to agree to purchase a base amount of power from the City and in effect become customers of the city's electric utility. A 17 year (through 2010)operating summary of cost of power is attached.Based on negotiations still in progress,it appears the lowest price of power,assuming the geothermal plant operates at full capacity,would not be less than 15 cents per kWh.The level of power purchased from AEA directly affects rates charged to customers as the AEA is required to charge rates to pay for debt service and operations.Accordingly,stability in the Unalaska/Dutch Harbor economy for the next 30 years is extremely important. The 17 year operating summary details rates which would need to be charged at varying economic activity were the economy not to be stable. Lastly,looking from a debt standpoint,our most recent audited financial statements show a total of $18,192,974 of loans,revenue bonds,and general obligation bonds outstanding at June 30,1991.On completion of the dock project,this total will become $22,000,000 (or $6,377 per capita).AEA's $67,000,000 of bonds would not be reflectedintheCity's financial statements (or per _capitacalculations)but the obligation to repay those bonds through increased electric rates,should the geothermal field become unproductive,would remain.Whether this would affect our ability to obtain additional bonds in the future is not known. Filename:"OESI_SUM" Apr- UNALASKA GEOTHERMAL PROJECT Dec Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year 17 YEAR OPERATING SUMMARY 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Part I -Alaska Energy Authority operations would provide power to City of Unalaska for prices (cents/kWh)for each annual level of demand as follows: Level 1 Annual kWh =5,000,000 174.43 176.72 179.52 182.02 184.68 188.62 191.48 194.46 197.58 200.88 205.28 209.16 212.92 216.78 220.86 226.14 230.56 Level 2 Annual kWh =10,000,000 89.36 90.52 91.92 93.17 94.50 96.58 98.01 99.50 101.06 102.71 104.91 107.03 108.91 110.84 112.88 115.52 117.73 Level 3)Annual kWh =15,000,000 61.02 61.79 62.73 63.56 64.45 65.90 66.85 67.85 68.89 69.99 71.45 72.98 74.23 75.52 76.88 78.64 80.11 Level 4 Annual kWh =30,000,000 32.67 33.06 33.52 33.94 34.38 35.22 35.69 36.19 36.71 37.26 37.99 38.93 39.56 40.20 40.88 41.76 42.50 Level 5 Annual kWh =45,000,000 23.22 23.48 23.79 24.07 24.36 24.99 25.31 25.64 25.99 26.35 26.84 27.58 28.00 28.43 28.88 29.47 29.96 Level 6 Annual kwh =60,000,000 18.50 18.51 18.76 19.00 19.25 19.79 20.06 20.34 20.63 20.94 21.34 22.04 22.39 22.76 23.14 23.63 24.05 Level 7 Annual kWh =75,000,000 15.53 15.45 15.68 15.90 16.13 16.64 16.89 17.15 17.42 17.71 18.08 18.75 19.09 19.43 19.80 20.25 20.64 Level 8 Annual kwh =88,000,000 13.68 13.64 13.86 14.07 14.29 14.77 15.01 15.26 15.53 15.80 16.15 16.82 17.14 17.47 17.83 18.25 18.63 Part 11 -City of Unalaska operations would provide power to city customers for prices (cents/kwWh)for each annual level of demand as follows: Level 1 Annual kWh =4,800,000 210.28 213.90 218.10 222.10 226.31 231.88 236.44 241.17 246.13 251.33 257.73 263.77 269.69 275.85 282.33 290.15 297.19 Level 2 Annual kWh =9,600,000 107.38 109.20 111.30 113.30 115.41 118.30 120.58 122.95 125.43 128.03 131.23 134.44 137.40 140.48 143.72 147.63 151.15 Level 3 Annual kWh =14,400,000 73.09 74.31 75.71 77.04 78.44 80.44 81.97 83.54 85.19 86.93 89.06 94.32 93.29 95.35-97.51 100.11 102.46 Level4 Annual kWh =28,800,000 38.80 39.40 40.10 40.77 41.47 42.58 43.34 44.13 44.96 45.83 46.89 48.20 49.19 50.22 51.30 52.60 53.77 Level 5 Annual kWh =43,200,000 27.37 27.77 28.24 28.68 29.15 29.97 30.47 31.00 31.55 32.13 32.84 33.83 34.49 35.18 35.90 36.76 37.55 Level 6 Annual kWh =57,600,000 21.65 21.76 22.14 22.50 22.88 23.56 23.98 24.40 24.85 25.32 25.89 26.78 27.31 27.87 28.46 29.16 29.80 Level 7 Annual kWh =72,000,000 18.08 18.08 18.41 18.73 19.06 19.69 20.06 20.44 20.84 21.25 21.76 22.60 23.08 23.58 24.11 24.73 25.31 Level 8 Annual kWh =84,480,000 15.88 15.90 16.21 16.50 16.81 17.40 17.74 18.09 18.46 18.85 19.347 20.13 20.58 21.04 21.54 22.11 22.65 For example,if demand is such that 60,000,000 kWh are purchased from AEA's geothermal plant in 1995,all City of Unalaska customers would be billed at the level 6 average rate of 21.76 cents/kWh. maximum required capacity of the geothermal plant,the average rate would be 15.90 cents/kWh. At level 7 demand,the average rate would be 18.08 cents/kWh and at level 8 demand,the demand would fall between levels 1 and 2 and the average rate would be between $1.07 and $2.10 per kWh. At ghost town levels (such as the year 1982)annual Unalaska Geothermal Project Jack Templeton's Report -November 26,1991 The Alaska Energy Authority (AEA)is considering the feasibility of constructing a geothermal energy plant with the proceeds of a $67,000,000 bond sale to be repaid over 30 years. The plant would be complete in April 1994 and would provide a base annual power capacity of 88,000,000 kWh for the community.Peak power requirements would be provided bycurrentgeneratingequipment(diesel).In addition,businesses which generate their own electricity would be required to agree to purchase a base amount of power from the City and in effect become customers of the city's electric utility. A 17 year (through 2010)operating summary of cost of power is attached.Based on negotiations still in progress,it appears the lowest price of power,assuming the geothermal plant operates at full capacity,would not be less than 15 cents per kWh.The level of power purchased from AEA directly affects rates charged to customers as the AEA is required to charge rates to pay for debt service and operations.Accordingly,stability in the Unalaska/Dutch Harbor economy for the next 30 years is extremely important. The 17 year operating summary details rates which would need to be charged at varying economic activity were the economy not to be stable. Lastly,looking from a debt standpoint,our most recent audited financial statements show a total of $18,192,974 of loans,revenue'bonds,and general obligation bonds outstanding at June 30,1991.On completion of the dock project,this total will become $22,000,000 (or $6,377 per capita).AEA's $67,000,000 of bonds would not be reflectedintheCity's financial statements (or per _capitacalculations)but the obligation to repay those bonds through increased electric rates,should the geothermal field become unproductive,would remain.Whether this would affect our ability to obtain additional bonds in the future is not known. Filename:"OESI_SUM" UNALASKA GEOTHERMAL PROJECT 17 YEAR OPERATING SUMMARY Apr- Dec Year Year Year Year "Year 1994 1995 1996 1997 1998 1999 Year 2010 Year 2009 Year 2008 Year 2007 Year 2006 Year 2005 Year 2004 Year 2003 Year 2002 Year 2001 Year 2000 Part I -Alaska Energy Authority operations would provide power to City of Unalaska for prices (cents/kWh)for each annual level of demand as follows: Level 1 Annual kWh =5,000,000 174.43 176.72 179.52 182.02 184.68 188.62 191.48 194.46 197.58 200.88 205.28 209.16 212.92 216.78 220.86 226.14 230.56 Level 2 Annual kWh =10,000,000 89.36 90.52 91.92 93.17 94.50 96.58 98.01 99.50 101.06 102.71 104.91 107.03 108.91 110.84 112.88 115.52 117.73 Level 3.Annual kWh ==15,000,000 61.02 61.79 62.73 63.56 64.45 65.90 66.85 67.85 68.89 69.99 71.45 72.98 74.23 75.52 76.88 78.64 80.11 Level 4 Annual kWh =30,000,000 32.67 33.06 33.52 33.94 34.38 35.22 35.69 36.19 36.71 37.26 37.99 38.93 39.56 40.20 40.88 41.76 42.50 Level 5 Annual kWh =45,000,000 23.22 23.48 23.79 24.07 24.36 24.99 25.31 25.64 25.99 26.35 26.84 27.58 28.00 28.43 28.88 29.47 29.96 Level 6 Annual kWh =60,000,000 18.50 18.51 18.76 19.00 19.25 19.79 20.06 20.34 20.63 20.94 21.34 22.04 22.39 22.76 23.14 23.63 24.05 Level 7 Annual kWh =75,000,000 15.53 15.45 15.68 15.90 16.13 16.64 16.89 17.15 17.42 17.71 18.08 18.75 19.09 19.43 19.80 20.25 20.64 Level 8 Annual kWh =88,000,000 13.68 13.64 13.86 14.07 14.29 14.77 15.01 15.26 15.53 15.80 16.15 16.82 17.14 17.47 17.83 18.25 18.63 Part II -City of Unalaska operations would provide power to city customers for prices (cents/kWh)for each annual level of demand as follows: Level 1 Annual kwh =4,800,000 210.28 213.90 218.10 222.10 226.31 231.88 236.44 241.17 246.13 251.33 257.73 263.77 269.69 275.85 282.33 290.15 297.19 Level 2 Annual kWh =9,600,000 107.38 109.20 111.30 113.30 115.41 118.30 120.58 122.95 125.43 128.03 131.23 134.44 137.40 140.48 143.72 147.63 151.15 Level 3.Annual kWh =14,400,000 73.09 74.31 75.71 77.04 78.44 80.44 81.97 83.54 85.19 86.93 89.06 91.32 93.29 95.35 97.51 100.11 102.46 Level 4 Annual kWh =28,800,000 38.80 39.40 40.10 40.77 41.47 42.58 43.34 44.13 44.96 45.83 46.89 48.20 49.19 50.22 51.30 52.60 53.77 Level 5 Annual kWh =43,200,000 27.37 27.77 28.24 28.68 29.15 29.97 30.47 314.00 31.55 32.13 32.84 33.83 34.49 35.18 35.90 36.76 37.55 Level 6 Annual kWh=57,600,000 21.65 21.76 22.14 22.50 22.88 23.56 23.98 24.40 24.85 25.32 25.89 26.78 27.31 27.87 28.46 29.16 29.80 Level 7 Annual kWh =72,000,000 18.08 18.08 18.41 18.73 19.06 19.69 20.06 20.44 20.84 21.25 21.76 22.60 23.08 23.58 24.11 24.73 25.31 Level 8 Annual kWh =84,480,000 15.90 16.21 16.50 16.81 17.40 17.74 18.09 18.46 18.85 19.31 20.13 20.58 21.04 21.54 22.11 22.6515.88 For example,if demand is such that 60,000,000 kWh are purchased from AEA's geothermal plant in 1995,all City of Unalaska customers would be billed at the level 6 average rate of 21.76 cents/kWh. maximum required capacity of the geothermal plant,the average rate would be 15.90 cents/kWh. At level 7 demand,the average rate would be 18.08 cents/kWh and at level 8 demand,the At ghost town levels (such as the year 1982)annual demand would fall between levels 1 and 2 and the average rate would be between $1.07 and $2.10 per kWh. Filename:"OESI_SUM" B kev TF - UNALASKA GEOTHERMAL PROJECT 'pec Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year 17 YEAR OPERATING SUMMARY 1996 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 A.AEA cost (cents/kWh): At annual kWh level =5,000,000 174.43 176.72 179.52 182.02 184.68 188.62 191.48 194.46 197.58 200.88 205.28 209.16 212.92 216.78 220.86 226.14 230.56 At annual kWh level =10,000,000 89.36 90.52 91.92 93.17 94.50 96.58 98.01 99.50 101.06 102.71 104.91 107.03 108.91 110.84 112.88 115.52 117.73 At annual kWh level =15,000,000 61.02 61.79 62.73 63.56 64.45 65.90 66.85 67.85 68.89 69.99 71.45 72.98 74.23 75.52 76.88 78.64 80.11 At annual kWh level =30,000,000 32.67 33.06 33.52 33.94 34.38 35.22 35.69 36.19 36.71 37.26 37.99 38.93 39.56 40.20 40.88 41.76 42.50 At annual kWh level =45,000,000 23.22 23.48 23.79 24.07 24.36 24.99 25.31 25.64 25.99 26.35 26.84 27.58 28.00 28.43 28.88 29.47 29.96 At annual kWh level =60,000,000 18.50 18.51 18.76 19.00 19.25 19.79 20.06 20.34 20.63 20.94 21.34 22.04 22.39 22.76 23.14 23.63 24.05 At annual kWh level =75,000,000 15.53 15.45 15.68 15.90 16.13 16.64 16.89 17.15 17.42 17.71 18.08 18.75 19.09.19.43 19.80 20.25 20.64 At annual kWh level =88,000,000 13.68 13.64 13.86 14.07 14.29 14.77 15.01 15.26 15.53 95.80 16.15 16.82 17.14 17.47 17.83 18.25 18.63 B.City cost (cents/kWh): At annual kWh level =4,800,000 210.28 213.90 218.10 222.10 226.31 231.88 236.44 241.17 246.13 251.33 257.73 263.77 269.69 275.85 282.33 290.15 297.19 At annual kWh level =9,600,000 107.38 109.20 111.30 113.30 115.41 118.30 120.58 122.95 125.43 128.03 131.23 134.44 137.40 140.48 143.72 147.63 151.15 At annual kWh level =14,400,000 73.09 74.31 75.71 77.04 78.44 80.44 81.97 83.54 85.19 86.93 89.06 91.32 93.29 95.35 97.51 100.11 102.46 At annual kWh level =28,800,000 38.80 39.40 40.10 40.77 41.47 42.58 43.34 44.13 44.96 45.83 46.89 48.20 49.19 50.22 51.30 52.60 53.77 At annual kWh level =43,200,000 27.37 27.77 28.24 28.68 29.15 29.97 30.47 31.00 31.55 32.13 32.84 33.83 34.49 35.18 35.90 36.76 37.55 At annual kWh level =57,600,000 21.65 21.76 22.14 22.50 22.88 23.56 23.98 24.40 24.85 25.32 25.89 26.78 27.31 27.87 28.46 29.16 29.80 At annual kWh level =72,000,000 18.08 18.08 18.41 18.73 19.06 19.69 20.06 20.44 20.84 21.25 21.76 22.60 23.08 23.58 24.11 24.73 25.31 At annual kWh level =84,480,000 15.88 15.90 16.21 16.50 16.81 17.40 17.74 18.09 18.46 18.85 19.31 20.13 20.58 21.04 21.54 22.11 22.65 Filename:"OESI_60" Apr- UNALASKA GEOTHERMAL PROJECT Dec 17 YEAR OPERATING SUMMARY 1994 Year 1995 Year Year Year 1996 1997 1998 Year Year Year Year Year Year Year Year Year "Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Year Year 2009 2010 1994 kWh sales =45,000,000 1995-2010 kWh sales =60,000,000 Annual inflation =4.50% A.AEA Bond Repayment Terms: Annual Debt Service 4,255 Fixed annual rate =$5,673,000 B.AEA Fluid Sales Terms: Wellfield maintenance 338 Base (inflation)=$450,000 General &Administrative 34 Wellfield maintenance *10% Well reserve fund 188 Fixed annual rate =$250,000 Property taxes 75 Base (inflation)=$100,000 General insurance 45 Base (inflation)=$60,000 Wellfield insurance 23 Base (inflation)=$30,000 Fluid fee <50,000,000 kWh 1,710 Rate $0.038 (fixed rate) Fluid fee >50,000,000 kWh - Rate $0.027 (inflation rate) Royalty based on fluid fees 236 Year 1-5 13.80% Year 6-11 19.40% Year 12+28.60% C.AEA Operations &Maintenance Terms: Fixed fee 1,400 Base (inflation)=$1,867,200 Heat exchangers clean/descale - Amount unknown - Repair &replacements 20 Amounts estimated by Beck 4,900 282 301 1,951 ALASKA ENERGY 5,673 5,673 5,673 491 514 537 49 31 54 250 250 250 109 114 119 66 68 72 33 34 36 1,900 1,900 1,900 295 308 322 303 305 307 2,039 2,131 2,227 50 50 50 AUTHORITY OPERATIONS 5,673 5,673 5,673 5,673 5,673 5,673 5,673 5,673 5,673 5,673 561 586 612 640 669 699 730 763 797 833 56 59 61 64 67 70 73 76 80 83 250 250 250 250 250 250 250 250 250 250 125 130 136 142 149 155 162 170 177 185 75 78 82 85 89 93 97 102 106 111 37 39 41 43 45 47 49 51 53 56 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 336 352 367 384 401 419 438 458 478 500 434 437 440 443 446 450 669 674 680 686 2,327 2,432 2,541 2,655 2,775 2,900 3,030 3,167 3,309 3,458 100 100 100 100 100 150 150 150 150 150 5,673 5,673 . 871 910 87 91 250 250 194 202 116 121 58 61 1,900 1,900 523 546 693 700 3,614 3,776 200 200 Total Energy Authority Costs 8,324 11,103 11,258 11,398 11,547 11,874 12,036 12,203 12,379 12,564 12,806 13,221 13,434 13,653 13,885 14,179 14,430 Energy Authority Cost (cents/kWh)18.50 18.51 18.76 19.00 19.25 19.79 20.06 20.34 20.63 20.94 21.34 22.04 22.39 22.76 23.14 23.63 24.05 Filename:"OESI_75" .Apr- UNALASKA GEOTHERMAL PROJECT Dec Year 17 YEAR OPERATING SUMMARY 1994 1995 Year Year Year 1996 1997 1998 Year Year 1999 2000 Year 2001 Year 2002 Year 2003 Year 2004 Year 2005 Year Year 2006 2007 Year Year 2008 2009 Year 2010 1994 kWh sales =56,250,000 1995-2010 kWh sales =75,000,000 Annual inflation =4.50%ARAAArhA.AEA Bond Repayment Terms: Annual Debt Service 4,255 5,673 Fixed annual rate =$5,673,000 B.AEA Fluid Sales Terms: Wellfield maintenance 338 470 Base (inflation)=$450,000 General &Administrative 34 47 Wellfield maintenance *10% Well reserve fund 188 250 Fixed annual rate =$250,000 Property taxes 75 105 Base (inflation)=$100,000 General insurance 45 63 Base (inflation)=$60,000 Wellfield insurance 23 31 Base (inflation)=$30,000 Fluid fee <50,000,000 kWh 1,900 1,900 Rate $0.038 (fixed rate) Fluid fee >50,000,000 kWh 169 705 Rate $0.027 Cinflation rate) Royalty based on fluid fees 286 359 Year 1-5 13.80% Year 6-11 19.40% Year 12+28.60% C.AEA Operations &Maintenance Terms: Fixed fee 1,400 1,951 Base (inflation)=$1,867,200 Heat exchangers clean/descale -- Amount unknown - Repair &replacements 20 30 Amounts estimated by Beck ALASKA ENERGY 5,673 5,673 5,673 33 34 36 1,900 1,900 1,900 737 770 805 364 368 373 2,039 2,131 2,227 50 50 50 AUTHORITY OPERATIONS 5,673 5,673 1,900 1,900 841 879 532 539 2,327 2,432 100 100 5,673 1,900 919 547 5,673 1,900 960 555 100 5,673 45 1,900 1,003 563 100 5,673 47 1,900 1,048 572 150 5,673 49 1,900 1,095 857 5,673 5,673 763 «797 7% =--80 250 250 170 «177 102 106 51 53 1,900 1,900 1,145 1,196 871 885 150 150 5,673 5,673 833-871 83 =-& 250 250 185 194 1 «116 568 1,900 1,900 1,250 1,306 901 «917 150 200 5,673 910 1 250 202 121 61 1,900 1,365 934 200 Total Energy Authority Costs 8,733 11,584 11,761 11,923 12,096 12,477 12,665 13,067 13,283 13,557 14,318 14,576 14,850 15,186 15,483 Energy Authority Cost (cents/kWh)15.53 15.45 15.68 15.90 16.13 16.64 16.89 17.42 17.71 18.08 19.09 19.43 19.80 20.25 20.64 Filename:"OESI_88" Year 2006 Year 2007 Year 2008 Year 2009 Year 2010 Apr- UNALASKA GEOTHERMAL PROJECT Dec Year 17 YEAR OPERATING SUMMARY 1994 1995 1994 kWh sales =66,000,000 { Sessssssss===z t 1995-2010 kWh sales =88,000,000 { susssrsss====={ Annual inflation =4.50%{ S2rrsssssscszss ra A.AEA Bond Repayment Terms: Annual Debt Service 4,255 5,673 Fixed annual rate =$5,673,000 B.AEA Fluid Sales Terms: Wellfield maintenance 338 470 Base (inflation)=$450,000 General &Administrative 34 47 Wellfield maintenance *10% Well reserve fund 188 250 Fixed annual rate =$250,000 Property taxes 75 105 Base (inflation)=$100,000 General insurance 45 63 Base (inflation)=$60,000 Wellfield insurance 23 31 Base (inflation)=$30,000 Fluid fee <50,000,000 kWh 1,900 1,900 Rate $0.038 (fixed rate) Fluid fee >50,000,000 kWh 432 1,072 Rate $0.027 (Cinflation rate) Royalty based on fluid fees 322 410 Year 1-5 13.80% Year 6-11 19.40% Year 12+28.60% C.AEA Operations &Maintenance Terms: Fixed fee 1,400 1,951 Base (inflation)=$1,867,200 Heat exchangers clean/descale -- Amount unknown - Repair &replacements 20 30 Amounts estimated by Beck ENERGY AUTHORITY OPERATIONS 5,673 5,673 1,900 1,900 1,120 1,171 2,039 2,131 5,673 763 76 250 170 102 1,900 1,740 1,041 5,673 797 80 250 177 106 53 1,900 1,818 1,063 5,673 833 83 250 185 111 56 1,900 1,900 1,087 5,673 871 87 250 194 116 58 1,900 1,986 1,111 5,673 910 91 250 202 121 61 1,900 2,075 1,137 Total Energy Authority Costs 9,032 12,002 12,197 12,380 13,000 13,211 15,083 15,376 15,686 16,060 16,396 Energy Authority Cost (cents/kWh)13.68 13.64 13.86 14.07 14.77 15.01 17.14 17.47 17.83 18.25 18.63 Filename:"OESI_60" Apr- UNALASKA GEOTHERMAL PROJECT Dec Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year 17 YEAR OPERATING SUMMARY 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1994 kWh sales =43,200,000 {ASSUMES t Srrsccsssssssss {4%toss IN { 1995-2010 kWh sales =57,600,000 {TRANSMISSION {CITY OF UNALASKA ELECTRIC UTILITY OPERATIONS mascosscssssss==C Annual inflation =4.50%{ Stcssrscscsss2 t A.AEA/City Power Sales Terms: Power purchased from AEA 8,324 11,103 11,258 11,398 11,547 11,874 12,036 12,203 12,379 12,564 12,806 13,221 13,434 13,653 13,885 14,179 14,430 B.City Electric Utility Overhead Personnel 519 723 755 789 825 862 901 941 984 1,028 1,074 1,122 1,173 1,226 1,281 1,339 1,399 Base Cinflation)=$691,631 Power plant parts &supplies *94 131 137 144 150 157 164 171 179 187 195 204 213 223 233 243 254 Base (inflation)=$125,763 Repairs &maintenance *284 396 414 432 452 472 493 516 539 563 588 615 642 671 702 733 766 Base (inflation)=$378,807 General &administrative 218 303 317 331 346 361 378 395 412 431 450 471 492 514 537 561 587 Base (inflation)=$290,054 Depreciation 399 555 580 607 634 662 692 723 756 790 825 863 901 942 984 1,029 1,075 Base (inflation)=$531,502 Interest 27 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 Fixed annual rate =$36,210 Other (134)(186)(195)(203)(212)(222)(232)(242)(253)(265)(277)(289)(302)(316)(330)(345)(360) Base Cinflation)=($178,189) Less allocated to diesel power *(378)(527)(554)(576)=(602)(629)(657)(687)(718)(750)(784)(819)(856)(894)(934)(976)(1,020) Base (inflation)=($504,570) Total City Electric Utility Costs 9,353 12,534 12,751 12,958 13,176 13,573 13,811 14,056 14,374 14,584 14,913 15,424 15,733 16,055 16,394 16,799 17,167 Electric Utility Cost (cents/kWh)21.65 21.76 22.14 22.50 22.88 23.56 23.98 24.40 24.85 25.32 25.89 26.78 27.31 27.87 28.46 29.16 29.80 Filename:"OESI_75" Apr- UNALASKA GEOTHERMAL PROJECT Dec Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year 17 YEAR OPERATING SUMMARY 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1994 kWh sales =54,000,000 {ASSUMES { Soesessss====={4%Loss IN { 1995-2010 kWh sales =72,000,000 {TRANSMISSION {CITY OF UNALASKA ELECTRIC UTILITY OPERATIONS srsssts2essss=t Annual inflation =4.50%{ sss2sss=s====={ A.AEA/City Power Sales Terms: Power purchased from AEA 8,733 11,584 11,761 11,923 12,096 12,477 12,665 12,862 13,067 13,283 13,557 14,066 14,318 14,576 14,850 15,186 15,483 B.City Electric Utility Overhead Personnel 519 723 755 789 825 862 901 941 984 1,028 1,074 1,122 1,173 1,226 1,281 1,339 1,399 Base Cinflation)=$691,631 Power plant parts &supplies *94 131 137 144 150 157 164 171 179 187 195 204 213 223 233 243 254 Base (inflation)=$125,763 Repairs &maintenance *284 396 414 432 452 472 493 516 539 563 588 615 642 671 702 733 766 Base (inflation)=$378,807 General &administrative 218 303 317 331 346 361 378 395 412 431 450 471 492 514 537 561 587 Base (inflation)=$290,054 Depreciation 399 555 580 607 634 662 692 723 756 790 825 863 901 942 984 1,029 1,075 Base (inflation)=$531,502 Interest 27 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 Fixed annual rate =$36,210 Other (134)(186)(195)(203)(212)(222)(232)(242)(253)(265)(277)(289)(302)(316)(330)(345)(360) Base (inflation)=($178,189) Less allocated to diesel power *(378)(527)(551)(576)(602)(629)(657)(687)(718)(750)(784)(819)(856)(894)(934)(976)(1,020) Base Cinflation)=($504,570) Total City Electric Utility Costs 9,762 13,015 13,254 13,483 13,725 14,176 14,440 14,715 15,002 15,303 15,664 16,269 16,617 16,978 17,359 17,806 18,220 Electric Utility Cost (cents/kWh)18.08 18.08 18.41 18.73 19.06 19.69 20.06 20.44 20.84 21.25 21.76 22.60 23.08 23.58 24.11 24.73 25.31 Filename:"OESI_88" Apr- UNALASKA GEOTHERMAL PROJECT Dec Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year 17 YEAR OPERATING SUMMARY 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1994 kWh sales =63,360,000 {ASSUMES { s2rrsss==s=====C 4%Loss IN { 1995-2010 kWh sales =84,480,000 {TRANSMISSION ¢CITY OF UNALASKA ELECTRIC UTILITY OPERATIONS SssSssssSsssssse=t Annual inflation =4.50%{ =Sss=S=SSS==2=¢ A.AEA/City Power Sales Terms: Power purchased from AEA 9,032 12,002 12,197 12,380 12,573 13,000 13,211 13,431 13,663 13,906 14,208 14,799 15,083 15,376 15,686 16,060 16,396 B.City Electric Utility Overhead Personnel 519 723 755 789 825 862 901 941 984 1,028 1,074 1,122 1,173 1,226 1,281 1,339 1,399 Base (inflation)=$691,631 Power plant parts &supplies *94 131 137 144 150 157 164 171 179 187 195 204 213 223 233 243 254 Base (inflation)=$125,763 Repairs &maintenance *284 396 414 432 452 472 493 516 539 563 588 615 642 671 702 733 766 Base (inflation)=$378,807 General &administrative 218 303 317 331 346 361 378 395 412 431 450 471 492 514 537 561 587 Base (inflation)=$290,054 Depreciation 399 555 580 607 634 662 692 723 756 790 825 863 901 942 984 1,029 1,075 Base Cinflation)=$531,502 Interest 27 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 Fixed annual rate =$36,210 Other (134)(186)(195)(203)(212)(222)(232)(242)(253)(265)(277)(289)(302)(316)(330)(345)(360) Base Cinflation)=($178,189) Less allocated to diesel power *(378)(527)(551)(576)(602)(629)(657)(687)(718)(750)(784)(819)(856)(894)(934)(976)(1,020) Base (inflation)=($504,570) Total City Electric Utility Costs 10,061 13,433 13,690 13,940 14,202 14,699 14,986 15,284 15,598 15,926 16,315 17,002 17,382 17,778 18,195 18,680 19,133 Electric Utility Cost (cents/kWh)15.88 15.90 16.21 16.50 16.81 17.40 17.74 18.09 18.46 18.85 19.31 20.13 20.58 21.04 21.54 22.11 22.65 Filename:"PCEP_RPT"-Fuel and Non-Fuel Costs Power Plant Per general ledger for year ended June 30,1991 Parts & Account #Account Name Total Personnel Supplies R&M G&A Depn Interest Other Fuel 31710000 ELECTRIC UTILITY: 31711000 POWER PRODUCTION EXPENSES: 31711100 OPERATIONS SUPERVISION &LABOR: 31711111 Salaries &wages 60,759 60,759 31771112 Overtime 19,620 19,620 31711113 Employee benefits 71,221 71,221 31711200 FUEL: 31711242 Fuel for generators 1,423,654 1,423,654 31711300 OPERATIONS SUPPLIES &EXPENSE: 31711330 Contractual &other services 7,834 7,834 31711333 Utility services 4,818 4,818 31711336 Repairs &maintenance 233,456 233,456 31711349 Other operating supplies 82,893 82,893 31711355 Small tools 4,761 4,761 31711359 Maintenance materials 19,847 19,847 31711364 Machinery &equipment 14,011 14,011 31711500 POWER PLANT MAINTENANCE: 31711511 Salaries &wages 121,844 121,844 31711512 Overtime 3,220 3,220 31711513 Employee benefits 36,757 36,757 31711559 Maintenance materials 56,538 56,538 31712000 PRIMARY EXPENSES: 31712100 PRIMARY REPAIR &MAINTENANCE LABOR: 31712111 Salaries &wages 18,084 18,084 31712112 Overtime 1,144 1,144 31712113 Employee benefits 4,576 4,576 31712155 Small tools 3,507 3,507 31712159 --Maintenance materials 3,906 3,906 31713000 DISTRIBUTION EXPENSES: 31713600 SECONDARY REPAIR &MAINTENANCE LABOR: 31713611 Salaries &wages 26,712 26,712 31713612 Overtime 1,968 1,968 31713613 Employee benefits 9,724 9,724 31713659 Maintenance materials 17,265 17,265 Filename:"PCEP_RPT"-Fuel and Non-Fuel Costs Power Plant Per general ledger for year ended June 30,1991 Parts & Account #Account Name Total Personnel Supplies R&M G&A Depn Interest Other Fuel 31714000 CUSTOMER ACCOUNTS EXPENSES: 31714100 METER READING LABOR: 31714111 Salaries &wages 6,306 6,306 31714112 Overtime 308 308 31714113 Employee benefits 2,013 2,013 31714200 ACCOUNTING &COLLECTIONS:° 31714400 UNCOLLECTIBLE ACCOUNTS: 31714493 Bad debt expense 90,207 90,207 31715000 ADMINISTRATIVE &GENERAL EXPENSES: 31715100 ADMINISTRATIVE SALARIES: 31715111 Salaries &wages 133,849 133,849 31715112 Overtime 4,449 4,449 31715113 Employee benefits 31,617 31,617 31715114 Annual leave air fare 14,895 14,895 31715200 OPERATIONS EXPENSE: 31715230 Contractual &other services 50,302 50,302 31715231 Telephone bill 9,016 9,016 31715232 Postage 1,560 1,560 31715233 Utility services 5,332 5,332 31715236 Repairs &maintenance 457 457 31715238 Advertising 40 40 31715239 Travel &entertainment 2,520 2,520 31715241 Office supplies 3,175 3,175 31715242 Fuel 4,910 4,910 31715243 Cleaning supplies 6 6 31715245 Food &beverages 787 787 31715249 Other operating supplies 2,005 2,005 31715255 Small tools 173 173 31715400 OUTSIDE SERVICES: 31715419 Moving expense 1,963 1,963 31715427 Education 1,246 1,246 31715500 PROPERTY INSURANCE: 31715535 Insurance expense 15,378 15,378 31715558 Property taxes 50,001 50,001 4 4”*tFilename:"PCEP_RPT"-Fuel and Non-Fuel Costs Power Plant Per general ledger for year ended June 30,1991 Parts & Account #Account Name Total Personnel Supplies R&M G&A Depn Interest Other Fuel 31715600 MISCELLANEOUS GENERAL EXPENSES: 31715611 Salaries &wages 4,612 4,612 31715612 Overt ime 21 21 31715613 Employee benefits 1,056 1,056 31715659 Maintenance materials 859 859 31715700 TRANSPORTATION EXPENSES: 31715711 Salaries &wages 12,378 12,378 31715712 Overt ime 2,248 2,248 31715713 Employee benefits 7,753 7,753 31715771 Gasoline 4,445 4,445 31715772 Auto parts 13,000 13,000 31715774 Engineering parts 3,135 3,135 31715775 Diesel 1,899 1,899 31715800 MAINTENANCE OF DPW BUILDINGS: 31715811 Salaries &wages 3,272 3,272 31715812 Overtime 1,417 1,417 31715813 Employee benefits 1,042 1,042 31715859 Maintenance materials 935 935 31716000 DEPRECIATION: 31716094 Depreciation 465,753 465,753 31716095 Amortization of Contributions (168,798)(168,798) 31717000 DEBT SERVICE: 31717091 Interest expense 36,210 36,210 Total costs for year ended June 30,1991 3,071,871 606,074 110,206 331,947 254,173 465,753 36,210 (156,146)1,423,654 * «---.:Steere mm me wWevMmoird r.0ol Hicks,Boyo,CHANDLER &FALCONER ATTORNEYS AT LAW SuttTe 200 @25 WEST.GZIGHTH AVENUE...ANCHORAGE,ALASKA.eo5or :|/ TELEPHONE:(207)272-840! TELECOPIER :(907)274°3608 FAX COVER SHEET DATE:11-QS-Fl time:G4 4m Fax No._Bol-$537Pleasedeliverto:Pévevr a Firm/Company: From:Boas Claw dle Total number of pages,including this cover sheet:\3 If there are any problems,call (907)272-8401 and ask for:CAE . BRK RE EK KERERREHH EKA HREKEEEKEEKKEREHRAHHEKREKRERREREKREAENE ORIGINALS WILL BE FORWARDED VIA: Regular Mail Express Mail Courier Service Hand Delivery Other MESSAGE; heet ae wevwoird rave Hicks,Boro,CHANDLER &FALCONER ATTORNEYS AT LAW SUITE 200 826 WEST ZIGHTH AVENUE ANCHORAGE,ALASKA 99580) TELEPHONE!(@O7)272-8401 TELECOPIER:(207)274-3608 November 22,1991 rAx (702)355-5656 Mr.Daniel N.Schochet Vice President -Marketing OESI Power Corporation 610 East Glendale Sparks,Nevada 98431 Dear Daniel: As we discussed yesterday,I am enclosing a localhireclausewhichtheCitywouldlikeinsertedintothenext draft of the Operation and Maintenance Agreement and the first draft of the Construction Contract.The City would also Like to be specifically designated as an intended third-party beneficiary of all AEA/OESI agreements, The local hire clause is as follows: In performance of all work required by this Agreement,Operator will employ or contract with persons that are residents of the City of Unalaska to the extent such persons are qualified and it is commercially practicable for Operator to do so. Very truly yours, HICKS,BOYD,CHANDLER & FALCONER J) Brooks W.Chandler BWC/gp ™ on ew tere wa ow Hienes DYVYU &LNANA LE RK Mr.Paniel N.Schochet November 22,1991 Page 2 ec:Brent Petrie FAX 561-8584JamesF.Kasen FAX 258-6872 Roe Sturgelewski FAX 581-1417 Eric Wohlforth FAX 276-5093 James F,Seagraves FAX(206)382-1589LewGreenbaum FAX (312)902-1061 Richard M.Johannsen FAX 276-3108RayBenish FAX (206)441-4964SubirK.Sanyal,Ph.D. FAX (415)327-8164 Y2503171 P83 TOTAL P.G3 Monday 11/25 Brent -- Beck received this on Saturday from Templeton,who says it will be used at the City of Unalaska meeting on 11/26.Templeton asked Beck to review it,and Benish says they will do so today.You might ask the City,if there is a convenient opportunity,to send such requests through us in the future rather than going direct to Beck.In this instance,Benish agrees that it is germane to their overall task and therefore falls within their scope. wy aw wait WA Vwi Mo dL Vio Pa Wa CuUu 4)470U4 r.Ul(RAW BECK a AND ASSOCIATES SEATTLE COMPLEX 2101 Fourth Avenue -Suite 600° Seattle,Washington 98]21-2375 Tel:(206)441-7500 Fax:(206)441-4964 Telex:4990402 BECKSEA If this message is incomplete or illegible, please calli Regarding: Facsimile Transmission om Tc DeK &rmermen Phone (fax): W.0.: Date:wafas/ot Time:70'S6 Am, :7 . From:ay Beurs A Message consists of /2-_pages,including this cover sheet. for your rn forme titra s rf Pts hey rs sot rade b le pls.Lon teeckLevenletons \nee Cu ga nVn Luray RW DOVA/OLNIILE VUNDULI rHA NU.cUS 441 4464 F.U2 .SENT BY:KINKO'S NO LIGHTS 311-239-91 ;3:27PM i KINKO'S NO LIGHTS 206 441 4064;4 2/12 Jack Templeton 7150 Henderson Loop Anchorage,AX 99507-2543 Personal Page:273-3640 Home Phone:344=7674 November 23,1991 Mr Ray BenishR.W.Beck &Associates,Inc. 2101 4th Avenue,Suite 600 Seattle,WA 98121 Tor FAX #(206)441-4964 Dear Ray: I noticed that the new agreements O8SI provided us onThuredayhadlowerroyaltyratesbuthedhigherbaseandvariablefluidfeeratessoIdidsomemathandrecalculated per the attached. The only item missing ln the calculation is clean/descaleheatexchangersyseriedically,a number which I hava noinformationon.I am also assuming that the information ondebtservicerequirenentscomasfromtheundarwriters. You will notice I have incorporated the fact that preoperatingexpenseshavebeencapitalizedintheprojectcostastheywillbemovedtotheconetructioncontract.I have accordingly,reduced costs in the first nine month period ta75%of annual budget and have computed kWh in that period ag75%of annual estimates alco. Let ma know Monday if I missed the boat somewhere as we willbeusingthesestatisticsatourcouncilmeetingonTuesdayevening. Sincerely, ee:Roe SturgulewskiCityofUnalaskaFAX#581-1251 cvo44143904KINKO'SNOLIGHTS-rnaW,ANvLVIVSLOILOVUIWULtSENTBY?KINKO'SNOLIGHTSaaweyr.Us2064414964:#9/1211-23-9133:26PM.?Fileneme:"OESI_eu"apr=-. URALAGKA BROTHENMAL @ROJECT Cec Yeer Year Yer Year Yesr Year Yeor Yeer Yeer Yeer Yeu Wer Year Yeer 'Yer Yeer 17 YEAR OPERATING SUMMARY 196 (9993)1996 9957)«=1998)1997 2080)«200 «Same iia Cis aa}wo A.AEA cost Coente/kith): At ennval ki level #=5,000,000 176.43 176.72 179.52 S82.02 184.68 108.62 401.48 1546.46 197.58 200.88 205.28 209.16 212.92 216.78 220.86 226.14 230.56 At ennuel Wh level ©10,000,000 W.35 90.52 4.52 93.17 Fh.56 96.58 98.01 99.50 101.06 102.77 106.91 107.03 108.91 110.64 292.66 115.52 197.73 at onmualih level ©=15,000,000 1.02 61.79 42.73 63.56 64.45 65.99 66.85 67.85 68.89 69.99 1.65 72.96 TH.23 75.52 76.85 78.66 80,11 At ennual kh level =30,000,000 32.67 33.06 33.52 33.0%34.38 35.22 35.6)36.79 36.77 37.26 S99 SEL 3956 40.20 40.85 41.76 42.50 At armuml ki Level =45,008,000 22 23.68 29.79 OF 24.36 BOF 25.51 B66 25.99 26.35 26.86 27.58 28.00 WAS 29.88 29.47 29.96 at annual kh Level=50,000,000 18.50 18.51 18.76 19.00 19.25 19.79 29.06 2.3%269 ARO 24.36 82.06 22.39 22.76 23.14 23.68 26.05 At annual kwh level ==75,000,000 B35 9.45 6.48 6.9 14.13 16.64 76.89 17.15 17.42 17.71 8.08 18.75 99.09.19.43 79.80 20.25 20.04 At enrual kwh level==88,000,000 13.68 3.64 13.86 16.07 14.29 4.77 15.01 15.26 15.55 19.80 15.15 %6.82 17.58 7.47 17.83 18.23 18.43 B.City exet (conta/iahd: at anquel kith level ==4,800,808 210.28 293.90 219.50 222.10 226.31 231.88 256.44 241.97 246.43 251.53 257.173 263.77 269.69 273.85 282.335 200.15 297.79 At snqual ith level =9,460,000 467.38 109.23 113.50 473.30 115.69 118.50 120.58 122.95 123.43 128.03 139.25 134.44 T3740 140.48 MS.72 UP.63 131.45 At anrwal kwh level =14,400,000 T3.09 74.31 75.71 77.06 78.64 80.44 B1.97 63.56 85.19 66.93 89.06 91.52 .29 95.35 97.31 TOD14 102.46 Rt ervaml kh Level =28,800,000 W8.80 39.40 60.10 40.77 41.47 42.58 A3.3h £4.13 44.96 46.03 46.00 458.20 49.19 50.22 51.30 $2.40 53.77 at annuel kih Level =43,200,000 2.57 2.77 28.24 28.68 2,15 39.97 N67 N.08 SS 32.43 3.33.8 6F H.W 35.36.BT At annual bh level=57,600,008 21.635 21.76 22.14 22.50 22.88 23.56 23.98 B%.40 24.25 25.22 25.09 26.78 27.01 BET 2BA6 29.16 29.00 ft annual kwh Levelo 72,000,008 18.08 18.08 28.4%75.73 19.06 19.69 20.06 20.46 20.84 21.25 21.76 22.60 25.08 25.3 26.11 26.73 25.31 at annual kh Level =64,480,008 15.88 15.90 16.21 16.50 16.81 7.40 17.74 16.07 1845 18.65 19.31 20.13 20.58 21.06 21.56 22.11 22.65 P.U42064414054;#4/12duo4414404KINKO'SNOLIGHTS roaNU,UVINOULIWNDEOVA/ZOCAIILoaveovvbLIVEDLUTSO2aPM.e11-28-31;3SENTBY:KINKO'SNOLIGHTSFilensees:"CESI_60" UNALASKA GEOTHERMAL PROJECT feo «(Year |6Yuer)=«6Yeer)«6Yeer «6(Year «6Yeer Your Year Year Yeer Yeer 'Year Yeer Yeer Year Your27YEAROPERATINGSUMMARY19619S1961997199799920002ekeAS20KOSASOOF«62008 «620 2010 1906 kih salen =45,000,000 £ SSERSSCESISs ¢t1995-2310 kwh sales =66,000,000 ¢ALASKA GHERCY AUTHORITY OPERATIONS <9)<srnual tf lation =4.50%€ Eee ¢ A.AEA Bond Repayment Terns: anruml Oebt Service 4,255 S,673 S673 5,673 5,673 5,478 5,673 5,673 5,675 5,673 3,673 5,673 5,675 3,475 5,673 S475 5,673 .Fieed annual rete=$5,673,000 B.AEA Fluid Seles Terss: Vell field aaintanance 36 460 1 Sth OSPF OSH 536 612i CSCI 930 Base {inflation =6450,000 € General 6 Adwinistretive 3 a?pt]St 3%S56 »"i oh 67 vo v3 7%so 3s 37 71MaLitietasafntensnce#10%Well reserve furs 71s)0 0250CiSHiCH-_iat CHO iC iHFixedannualtate@9259,000 ° Property tase 7%106 107 )0-(4119s TS 19 1%8 61420«MSU COSTCO CG OOP Gane Cinflation)=6100,000 Senecal tneuranee 45 Se &ae v2 Ee]ra |eg -6 s 3S Ww Mm 06 911 160 «6121 Buse Cinflation)a $60,000Velifialdfnsurence ro]3t 33 %%3v 39 "i 43 45 a ”51 bt |5%58 onBase(inflation)=$30,000 Fluid fee <50,000,000 bih 1,700 1,90 1,900 1,500 1,506 1,905 1,503 1,900 1,900 1,900 1,909 1,900 1,900 1,900 1,900 1,910 1,900Rate10.053 dined rete)Fluid few >50,000,000 kvh -282 a 3S ce a ||4190 458458 CTE S00 346Reve60.027 Cinflation rate)Royetty beasd an tleid fees a6 sot SS 306 xT 434 437 can 443 446 430 68?ora 6ae PS)63 TooYear1-5 43.80%Yeor G-11 9 19.40%Year 129 28.60% C.:AEA Operattons &Rstntanence Terma: Fixed fee TAN 1,954 2,089 2,TA 2,227 2,327 2432 2,541 2,055 2,75 2,900 3600 3,167 3,509 3,458 5,658 3,776tees(inflation)=61,867,200 Heat exchangers cleen/descaie --------7 -------- frou,UNKAEA - Sepeir &replecenents a 30 x”30 3 3 WO 10 106 1 150 10 Ge 60 WM BO 200AMOUNTSextinatadbyBeck Energy Authority Cost (conte/kth>18.50 18.51 16.76 19.00 99.25 99.79 20.06 20.04 A.6S BD.2.22.06 22.359 22.%23.4 23.63 24.05--ae Totel Energy Authority Costs 8,326 11,103 11,258 91,398 11,547 1,674 12,086 12,208 12,379 12,566 12,805 13,221 15,454 18,483 13,835 14,177 14,430 a P,Ud2064414904;#5/12cuo4414404KINKO'SNOLIGHTS-rnaWAIWDEVA/VON!ILOVUINDULIavycvvalivwihLUIS311-28-9139:30PM;KINKO'SNOLIGHTSSENTBYHilerame:"Ogs]75” -Spr-URWLASCA GEOTHERMAL PROJECT Bec «Year Year Year Year Year Yeur Yeor Year Yoor Yeer Yeer Yeer Year 'Year Yeer Year47YEAROPERATINGSUNMARY194%19795 19%«1997 1993 1999 2000 al 2002 2 Ae eS OK CO?6s OfIO 1994 ih sales =56,250,000 C =e eee € 795-200 kth selee =75,000,000 €ALASKA BMERGY ADTHORITY OPERATIONS =e See zg fnmal inflaticn =4.355 ¢ oaneuneeeee { A.SER Bond Repayment Tere: anaual Debt Service 4,53 5,473 5,673 3,673 5,675 5,673 5,673 5,473 3,673 5,673 5,673 5,675 5,473 5,673 4,873 5,673 5,673Finedanna.rete=65,673,000 B.ABA Fluid Seles Terns: We Affsld maintenance :ee sc a:er oe a)eo ee Lt)Gane 'infletian)=$450,000 Genera.&Acminiatretive 3%a7 a9 51 S&56 59 a r.7)@ vo w3 6 pe)3s a7 ba}Vell f-e1d maintenance *{azWellreservefund 1.06UtiSH i __-iaH-_CiaGCC iSO ast Cia i ]elCUeCOsé?TTF-xed annual rate =$250,000 ° Precerty tas re]ce 10°#794 «=«19 -61S UTH]UCUWGlhUMM CUM OUTS ClO OTC 185 -iCTHD-s 2 Base 'inf lation)«=$109,000 Genre'tneurence Ss 63 6 c..)Te Pp)73 a 65 39 be)rT TC 104 1 16 «6121Base(inflation)©060,000Meilffeldineurense r+]3t bt)be %v7 39 "a 3 4S 47 tC”Ss?53 56 358 6!Bese tinfiation)2 $30,060Fluidfee<50,000,000kih 1,900 1,900 1,5%K 1,900 1,500 1,903 1,900 1,800 1,500 1,900 1,900 1,900 1,900 1,900 1,902 1,900 1,900-fete 99.038 (fixed rate) Flaid ter >30,000,000kwh 10 7/5 CUTSFCOTCOG OICTDTIF HED 1,003 1,048 1,095 1,145 1,196 1,250 1,305 17,365fete60.27 inflation rated Royalty based on fluid fees 286 =3&368 a3 s32 S39 547 $55 363 S72 ar ort be oo]$01 nT inYear°§B.2Ox War 6-11 19.40% Yeur "2 23.60% Cc.MEA Operations &Metvtenenee Yor: Fined fee 2,000 1,951 2,039 2.131 2,227 B327 2,432 2,541 2,455 2,775 2,900 3,080 3,167 3,309 3,058 3,615 3,77Bseetinfistion)=$1,467,200 Hes:eechangers olean/deocate --------------»-. seeud urknan -° Repair &replacenentce ao 872 Re OUDOTUlUCUMSOCUCULTOCUT CUI lO CSO COSCO CSCO 1SCtiséKMDAupuntsestimatedbyBeck Totel Energy Auhority Costs 5,733 11,504 11,761 11,923 12,095 12,477 12,665 12,852 13,067 13,285 13,557 14,066 14,318 14,576 4,250 15,186 15,483zereresesLESS Pnergy Authority Cost Ceentafiwh>(15.55 95.45 15.63 15.90 16.13 16.64 16.89 97.95 17-2 97.78 43.08 18.75 19.09 19.43 19.80 28.25 20.64 Y.Ub206$414964346712cuo4414904KINKO'SNOLIGHTS?rnaWW,KNWDCVA/JOCNIILEVUNDULIIvecv92MV1UHOU11-23-91+;3:51PMa'SENTBYsKINKO'SNOLIGHTSFilename:"DESI 65" aer-GNALASEA GEOTHERNAL PROJECT Dec Yesr Your Yeerr Yeer Yeer Yeoer Yeer Year 'Yeer Yer Yuer Yenr Year Year 'Yeer Year47YEAROPERATINGSUBRARY1394799519951957799819992000200iAe2x5AMATSAOSADOeCKDCD 1%,kth sales =64,000,000 ¢ 2 { 1995-2010 kV sales=88,000,000 H ALASKA BREREY AlITHORITY OPERATIONS Tee| forvsal inflation =&.SOX € € A.ABA Bond Repayment Terme: Annual Debt Service &,255 5,673 5,673 $,673 5,673 5,673 3,673 5,673 Fixed ewwel rete =33,673,000 B.AFA Pluid sales Terme: Wel field s2intensnce 2340 =£70Buse¢(irnfletien)©$450,000 Senevel B Admintatrative BT a7Veltfieldnaintenance*10% Well reeerve fund 78 20 Fixed enqwol rare >$250,000 pty taxes Ss 16ase(inflation)©$100,000 General fnsurence ss SsBaee(inftation>=$4,000Weltfieldtnaurance 3 a1 Oase <4rfistton)«$30,000 Fluid fee <50,000,000 ih 1,500 1,900Rete40.033 {fined rete) Flutd fee >?30,000,000 kith fete 60.027 Cinftlation rate? noyalty based on fluid fase Sz 0 4yaar1-5 TS.80%Year 6-11 =19.40%Yeer 12+28,a0X c.AEA Cperatiaqne €Printerence Terus: Fined fee tase Cinflattion)?=31,867,200 Heat anchengers clean/descale -- seont unakrewn - Repair &replacements faounts eatisnted by Beck 1 SH (5!$a 8 612 49 ba)ba 5 39 +):ie |ee=}eeoo 1,400 1,951 2,059 2,1 2,227 2,327 2,452 2,541 ----- non SS 3S 2 1 10 5,673 5,473 5,673 5,67$S673 5,673 3,673 5,679 4,673 es aS) o&or 7 3 6 80 a a?91 mam wm 2 6UShOUlUlC CUCU CBO wa Ww HSH 12 «170 17t WS lI O L--)a bt FT 2 16 M1 «86 (1 &45 4a?4?1 53 56 54 a} 4,200 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,559 1,525 1,993 1,665 1,780 1,618 1,900 9,986 2,075 2 6A GFA 1,020 1,001 1,063 1,087 1,111 1,137 2653 2,775 2,900 3,050 3.067?3,509 358 3,614 3,776 m W 1 «6390 650 60S lOO OC Total Energy Authority Casts 9,082 12,002 12,09F 12,380 12,575 93,000 13,271 15,45)13,663 13,5046 14,208 14,799 15,083 15,376 15,486 14,00)16,395 Energy Authority Cost Ccenta/iih)673.68 13.66 13.86 16.07 4.29 16.77 15.01 15.26 15.53 15.80 96.15 16.82 17.14 T7467 17.53 16.25 13.63eenToe=e 2VU0_$444004%frac__32PM3;-KINKO'SNOLIGHIS*-SENTBY:KINKO'SNOLIGHTS---313-29-81-338Filename:"OESI 4"Age UNALASKA GEOTHERMAL PROJECT bec «6Year «Year Year Year Year Yeer Yeer Year Year Year Yeer Yeer Yeer Year Year Year47YEARGPESATIIGSUMMARY49%1955 1996 1997 1998 1999 2008 2001 2m 205 26K 2005 «4892006 «8«2007 2008 2a 2010 9994 idk:anales =3,200,000 «60 (ASSUMES € commexexxercc {£1 1955 IN q 1995-2010 kih sales =57,600,000 €TRAMIBISSION &4 CETY OF UNALASKA ELECTRIC STILITY OPERATIONSGQuweemensenewdt¢ snual infletton &4.50%cqmeeeanessss A.ARASCity Power Seles Terma: Power purchased from AEA BIH 11,463 11,258 11,396 19,547 11,874 12,036 12,208 12,379 12,556 12,806 15,224 458,434 13,653 13,085 14,179 14,430 B.Ciey Electrfc MiLity Overhesd Persennel.319 0=s 723 7 60789 Sis 1 9A 1,028 1,076 1,172 1,175 1,226 1,288 1,359 1,309GeceCinflation)=$691,@1Powerplaatparts&cuppltes ¢™ %5)|i i i od 1 wv 179 8 8=618P 195 205 23 23 2 263 254SaseCinflation)=8125,763Repairs&anintonance *P49 396 &t4 2 452 472 45 516 mw 655 -ClOSUS 65 é2-sGgT we 86733 766Gace(inflation)=0378,a7 General &achinistrative 70 317 ty!M6 COMI 378 395 412 «(431 450 471 2 S14 537 SetBosefinflatian)=£290,Depreciation 6 OSS-i-i'CBC OF TSO OTH CSCS MOL H2 KG s1,029 1,075BeseCinflation)=$531,502Interest rtd %%%36 56 36 %34 3%56 p-)3%%36 %%éFixedanalrete=$36,210Orher (1356)186)(19S)(203)C2029 C222)2352 ADD (2539S)2)ee)ste)«G6 C330)(345)em) Base Cinflation)=(8178 ,180)Leas allocated to cisest power&37B)(SR?)«C5549 «=Gth)(6023 (629)(E57){6879 CHB)(750)(7BAd (B19)(856)(8)(554)(9769110209CaseCinflation)=(854,570) Votat City Electric utility Coste 9,353 12,534 12,751 12,955 13,176 13,573 13,811 16,456 14,314 16,504 146,915 15,626 15,755 16,05 16,396 16,999 17,167 Electric Utility Cost (cents/ith)21.65 21.76 22.46 22.50 22.88 23.54 25.95 MAD 2.85 25.32 25.89 26.78 27.3)2B?28.46 29.16 29.80 NALTR-C?7_AANRAGINLTASNOAFLLEBAS/NAAMMp96biphSOc'ONX¥420d ZUG4b20081FG71213-23-61+8:83PM>SENTBY:KINKO'SNOLIGHTSKINKO'SNOLIGHIS+Fitene:€5t_75* UNALAR GOSHIBHAL PROUECT Occ Year Year er Year YWaer Yeur Yer Weer Yeor Yeer Your Year Year 'Yeer Ycer Year 'tT VEAGFEATIOG SumlmARY 19%«619955 1995 BF W595 999 2000 2001 22 2G AM AG 26 MP CUA CU CO 1994 fo mila 8 54,000,000 €ArMiNESs = 1996-20Weestes==72,000,400 C eNG0SSION F CITY GF UNALAGKR ELECTRIC UTILITY OPERATIONEBt" AnnuaUafe-ton =+5 3 A.AEAAty Sower Bolee Terns: Power inched from AEA SB.Cit Plecric Urility Qverheed Person:L Bese mftr-lor)«9691,651Povarantpavts£suppites & Baee nfb-iod =$15,165Repeir6aatwance&Gase af irzion)=$373,207Genera&cuiniatrativeBaseaflr-ios)&$290,054 DaprecticGzeeofirs or)©6532,502Intere. Fimednnur.rete =334,210 Other Bese af ir_{for}=(0478,189)Leas secerd to diesel pousr + Base -afliticr)=.(0504,37 S,F33 91,584 17,761 WG23 12,096 12,477 12,666 12,862 13,067 13,263 13,557 14,066 14,3518 KAM 16,8)15,786 15,455 sp 67258073 *s 8 BR?et 0 2 WE OAS 28 SS STF Bl OMS |smo ar 654 Ys 36 %(36 3 C1)CIM)C195)20)«123 C37)Cie?)(S51)6)(602)28€838(2223 (6293 (232) (857) 10 OH «(9,08 1,076 1,122 mm Ut OUT OO 516 «533563 BSG 9506092 CH T3 8656 70 as %36 hd 35 % 1,173 213 642 492 90 36 1,226 4,281 1,339 1,399 2s 283 BS OG nm 2 78 766 44 Sy 364 ==«(SeT M2 98 1,029 1,073 36 36 56 % C2h2>)C255)«CSS «TT «(289)(32d C16)«(5309 «GS Ga) COT)(TIS?(750)(284)(819)(B56)Cased <954)69769¢1,020) Toval ity Aectrie UtiLity Costs 9,762 15,015 TS,254 1HBS 13,725 Why t76 14,446 14,715 15,002 15,305 15,656 16,269 16,617 16,978 17,359 17,206 18,220 Electr:Wi ity Cost (cente/RWh)18.08 08.08 16.69 1°73 19.06 19.67 20.06 20.46 20.84 21.25 21.76 22.60 23.08 23.58 26.11 24.73 2.21===aTAINSNANTTLIHASMAINMMpbO02'ONKWpO6b[bbNeaniAtNALTeADAA 2064214058:#pidKINKO'SNOLIGHTS>4511-28-913B:O4PM3SENTBY:KINKO'SNOLIGHTSFilasmes:"a-_mS" =pUNAL-SKA GECUMRNAL PRODECT Ge Yea Year Ye Year %wer Year 'Year Year Yea Year Yeec Year Year Yesr Year4?YAR CPERING SUA -Se 1 196 #1 #198 1 60 2 Oe OS Oo OS OU CO?Coke 2 1902 dt sa.©63,30-8 ¢£MUS ¢ 19952010 kiemales=86,480.5 -<YAANSELERION £Cit =LDLASKA ELECTRIC WIILITY OPERATES c € Guanmnequnas frat ivflam=s. ee A.AaA/tity mer Sales Teres: Sea Ctaflemn)©(5978,% Powe puschem from AEA =. B.Cty Slesme Utility Overkee Pereanel.Fx!Te TS Ts Bas Cinftemn)=Sant Power plant arte 6 a lee *a 13 BF tk fee (fat lama)»$13.7.Aepera&aemenence *=38 wm «wGaeCinflamn)s 378.8Geneat&aGe tetrative zi so0CUT OU Bee (inflam)=6290,5Deprclazica L-]35 590 wwBasCintlemn)=O51.5Intocet z 3 3 a Fed ennvessste ©S36,Othe mi (=(195)GC Giz) 42,00 12,197 12,9 @,573 12,S2tt 13,471 13,4663 13,906 14,2014,799 19,085 15,576 15,686 16,060 16,306 =01 M1 91K 10%1,022 1,178 1,226 1,281 1,339 1,399 "7117S EP IK as 235 OS 2M =93 54 «8539 «S68.CSHB CG61S 67th? =e 4 % ss 471 354 SOF SOF OSE? 2 Wh 1,09 1,075 %36 36 b |b )x6 %3%%4 36 €232)(242)(253)(265)(27%,(289)Ga)G6)GH)G45)GO)BREasi 7H TH BE Lesemlleca:to diesel power #GO Gz 5th Cr (2)€MSS)687)(PIED C750)(7B CBI9>§«CH5E)C80G)(59K)0978961000)Gen Clafinen)=0504,5 Tota Cty Emmric Utility Combe 13,45 15,696 15,98 G,202 14286 15,208 15,598 15,926 16,31717O02 17,382 17,778 18,195 18,680 19,183 ElecicUrMy Cost Cosnte/iPaMELti 15.0 16.23 165 16.80 WM 18.07 18.46 B.65 19.01 20.13 20.58 21.06 21.56 22.11 22.65 4:ocintMATTOADaniHINGNANWHTHae/vATaMy'ANVHApaRbhTbhanebd ZUbSELBNFHAULLEKINKO'SNOLIGHTS?:A5PN311-28-91;SENTBY:KINKO'SNOLIGHTSFilename:"PCEP_RPT"-Fuel and Now-Pusl Costa Pover Plant Per goneral ledger for year ended dune 30,1991 Pacts € acount©Account Mave Total =Personnel «Suppl les Ran Sa@a Gepn interest Other Fual 31710000 ELECTRIC UTILITY:; SI7TIOCN POVER PRODUCTION EXPENSES: SI711100 GPERATRONS SUPERY1S108 @ LABOR: 31714194 Selerfee &veges 60,759 c,r59 SiMe Overt ine 19,420 bP a]TUS ==--_-Employes besef ite tar)71,221 SI711200 FUEL: S711 262 Fuel for generetora 4,423,654 1,023,654 S171730)OPERATIONS SUPPLIES &G)PGUSE: 34711556 Contractum.&other services 733 134SWS«URALity mervinse 4,6"4,818 FUN Repaice &naintemence 233,56 23,456 31711340 Other operating sapplice 82,095 82,395 S17113355 faalt tools 4,761 +7" MNS Hetnrenance mater iets 9,847 19,047 31711566 Kachinery &equipsent 14,11 14,014 FITITO POUER PLANT MAMITEMAMEE-711511 Sateries &veges 121,866 121,864 31719502 Qvertine 3,228 3220 MAS Euployer benef ite 36,757 36,23? Faleu 3 J Nafntenance meteriels 36,338 56,556 PAWS PRORAY EXPENSES: 31712180 PRIMARY REPAIR &MAINTENANCE LABORS M2111 Selertee §weyes 1,0 18,086 Mrizitz Quert tac 1,Uh 1,1 712113 Enployee benefits &,576 4,576 nmN265 Sunil tools 5,37 3,507 St7i2159 daintensnce aster tais 3,906 3,906 BITTON DISTRMUTION EXPENSES: SI713600 SECONDARY REPAIR &MAINTENANCE LABOR: 317138611 Salaries &wages 2,72 26,712 SiMSé12 overt ine 1,968 1.968 S1713813 Enployee benefits 9,724 9,7 SIT1S459 latotenance uaterialea 17,285 17,20 BNOeRTHRANDcn'4eeeTeeeeALTunre GWFIRBewsloarowKINKU'SNULum?3141-28-913S:d6rM;SENTBY:KINKO'SNOLIGHTSFilenese:"PCe&OFT"Fuel and Bon-Pucl CostsRergeneralLedgerforyearendedJune30,1971ftcount#fkcepunt Nene Total Personnel Supplies 8 &Gea Bepn =sInterest'=Other fuel JATIQIOD CUSTOMER ACCOUNTS GRPERES: 31714100 METER READING LANOR: 317461 %4 teloriea &wages 6,396 6,306 S1714112 0 Oversiae 308 308 TiM613 «=Employne benefits 2,013 2,103 BI7IGZ00 ACCOUNTING R COLLECTJoNS:. BYT1S40D UNCRLLECTIGLE ACORUNIS: S71443 Ged debt expense 9a,207 90,207 S171S500D ADMINESTRATIVE &GENERAL EXPENSES: SIPIS100 ADMINISTRATIVE SALARIES: 31715111 Salertee &vagos BMP =33,SI71S172 ss Cvareine 4a?5,PSITiSM13==--Employee banefits 31,617 =.31,617N1V151%&==-s Armunl leave ate fare 4,095 14,895 34715200 OPERATIONS EXPENSE: 31715236 Contractual &other services 50,302 $0,30231715231Yelephonebill9,016 9,016 317152320 Postage 1,560 1,569 SW15233)ic fL ity services $,332 5,3323171523«=Rapatre &natntenencs ss?4s7 17ize 0 Advertising 4 a 31715239 Travel &entertatazent 2,520 2,520 SUNS261 0 Of F1oe suppl tes 5,75 3,1 SI71S262 0 Pel,4,910 6,910 Tiss Clesning supp ies 6 6 SMI Food &beverages Te?™ TPNS2 =«Other qmerating supplion 2,403 2,005 31715255 Yasll tools v3 173 31715400 OUTSIDE EREVECES: SiMS419 «=Novving expense 1,963 1,963 SATESQ27.Education 1,246 126 SITISSOO PROPERTY INSURANCE: SI713995 Inaurance expense 45,378 5,578 31713558 Property teces $0,001 90,001 TAINANPePetertATeeann'AMoutHhNOhThRANDan°*4 SIAEustissatoweu$ SINKU'SWYLiund-s”11-28-8133:GtrM.'SENTBY:KINKO'SNOLIGHTSFilensme:"PCEP RPT”-Fuel and Non-Fuel Costs Per general ledger for year ended June 30,1971 Porte & Aecount 9 Account Mane Tetal =s Persomel Supplies aGéa aba Sapna Intereet orher Fuel S1T15600 WI GCELLANEOMS GENESAL EXPENSES:1ris671 ss Salaries &vegeoFITZOvertine SI715613 =Euployes:benefits31745659Hetntenencematerials StPI5700 TRANSPORTAYIO€"EXPRUSES: SITTIN Salaries &uages NMNSvN2 Overt ian Hrs Eupleyee banefiteSTt5771Gasoline SMST72 data parts diVST 74 Englasering parts SIAN Pieeet SIP13400 BARITEUNCE OF BPH BLALDINGS: s171568n1 Salartos @ vages 3715812 Overtine 31715513 Auployes benefits 31715859 Ratntenence mteriala S1716000 DEPRECIATION: JIT DepreciationSIMSanort{setien of Contribettore Si7S70G0 PEAT GERVECE: 31717001 Jaterest ppenes Toval costs fer pear ended Jame 50,1991 4,612 4,612 2 at 1,056 1,056 a any 12,373 92,378 2,248 2,248 7,735 7,03 &44S £,445 13,000 13,000 3,733 35,435 1,899 1,399 3,272 3,272 TAT?9,417 1,042 1,062 Lied 935 £65,733 45,153 (168,798)(168,798) 34,210 36,210 S,OT14F |606,074 9 190,205 «=S31,OBE,173 465,755 3,2)(156,146)1,423,56 om -ConeTTMANT@009aATINGhNYATLIHAC/VAIGMubO8blbbaN?'CNXWLO'd wey Oo Oh WM Attu AW DEVA/OENIILE VUNOULI roA NU.¢€U0 441 4¥04 Fr.Ul Rw BECK | Facsimile Transmission AND ASSOCIATES SEATTLE COMPLEX . 2101 Fourth Avenue i |" -Suite 600 To Brent phe.-Dic.K Lymermen_|:Seattle,Washington i ; 98121-2375 ;;Phone (fax):(G01)S61-8S3Y "2 Tel:(206)441-7500 - Fax:(206)441-4964 Telex:4990402 BECKSEA W.O:: If this message is Dates Tine:incomplete or illegible, please call : _,|From fay Bess 4 Message consists of _7..pages,including this cover sheet. Regarding:|Brend dpek:Z DAve MeherBermorandamoc.Me Will Vue.UE.Lath,anal._Lbdbhel.Lies...Aim...Baecerveth...OLS4 | Vols.A-B-C..today.Le bell,call LAs,CLT_&LILES LZ Liat Luaating Wtth Yau.Also:yYeceried AMLAALEU Cnfl20,ct:facta.than KSRegards-_.TrBentz VEY"YT9L MUN 14°US t ' KW BEUR/OEAI ILE UUNSULT RW.BECK ANDASSOCIATES SOs FAX NU.206 441 4964 2101 Fourth Avenue,Suite 600 Scare,Washington 98121-2375 @ USA Telephone (206)441-7500 m Fax (206)441-4964 Consulting,(206)441-4962 Euginecting Telex 4990402 BECKSEA WS-1559-AA1-AA MEMORANDUM To:File From:Dave Helsby Subject:Unalaska Geothermal Project to date regarding Unalaska area loads and resources. Analysis of Loads and Resources P,02 December 6,1991 The purpose of this memorandum is to summarize the results of our analyses Area Loads There are three categories of area loads which we have examined.The "City -Existing"load is the existing load served by the City's diesel generators."ProcessorLoads"are the loads of the three major seafood processors-Alyeska Seafoods,UniSea and Westward Seafoods.These processor loads are all currently served by the processors'own generation."Prospective Loads"are major loads which either exist or are anticipatedtodevelop,but are not currently served by City generation,The following tablesummarizesarealoadswhichwehaveforecastedfortheyear1994: Area Loads -1994 (kWh/year) City -Existing Processor Loads: Alyeska UniSea Westward Total Processor Loads Prospective Loads: APL Os! SeaLand Icicle Margaret Bay Total Prospective Loads 23,600,000 13,200,000 30,600,000 15,800,000 59,600,000 3,500,000 1,100,000 3,300,000 3,900,000 10,500,000 22,300,000 Boston,MA @ Columbus,NE a Denver,CO #Indianapolis,IN @ Minneapolis,MN Nashville,TN w Orlando,FL @ Phoenix,AZ a Sucramenw,CA &Scatiic,WA ®A Recycled Paper Priditex 7 a e - Viv s Ooh my 144 KRW DOEVA/SCN ILE VUNDULI FAX NU.cub 441 4¥b4 Memorandum to: P,03 -2-December 6,1991 With respect to the above projected loads for 1994,the following explanations are File pertinent: 1 * 2. 3. 4. The City's existing load is based upon the 1991 load level,increasedby5%per year to 1994.Some load growth in the City's existing loadisanticipatedoverthenextthreeyearstoreflectthefactthatinfrastructuredevelopmenthaslaggedsomewhatbehindthegrowth in the fishing and fish processing activities.Thus,there will be somecatch-up causing growth in existing City loads over the next few years. With respect to processor loads,the Alyeska load is based upon the1991loadlevels,assuming no load growth.The UniSea load is based upon 1991 load levels,annualized to reflect a full year of operationofthenewUniSeapowerplantandfishprocessingfacilities.The Westward Seafoods load is based on 1991 load levels,annualized to reflect a full year of operation and a growth factor of 25%.Westward has indicated that some additional facilities are planned to be constructed within the next year or two,and that full operation of the plant would be at a somewhat higher level than indicated by thefirstpartialyearofoperation. The prospective loads of APL (American President Lines),OSI (Offshore Systems,Inc.),SeaLand,and Icicle Seafoods are all existing facilities but are supplied by self-generation. The estimate of load for the Margaret Bay developmentis very rough at this point.Limited information is available.A 106-unit hotelcomplexisthefirstexpecteddevelopmentandisplannedforcompletionin1992.Additional development of retail space,warehouse space,cold storage space is planned within the next threeyears.We have been told that UniSea will own the hotel,andthereforeitisuncertainwhetherthisloadwillbeservedbythe UniSea power plant or by the City.The attached memorandum fromMikeHubbardprovidesmoreinformationontheMargaretBaydevelopment.os UGV-9-91 HUN 14604 RW DEUA/OCH!ILE GUNDULI rAA NU,ZUG 441 4¥b64 P,U4 Memorandum to: .File -3-December 6,1991 Use of Resources In order to determine the use of resources in meeting the area loads,we have used an hourly dispatch model called ProSym.We ran two cases,one without the prospectiveloadsandonewiththeprospectiveloads.The following table summarizes the results of the two load and resource analyses: Case No.1 Case No.2 w/oProspectiveLoads with Prospective Loads(kWh/year)(kWh/year) City Loads and Resources: City Loads -Existing 23,535,000 23,540,000 Prospective -22,300,000 Alyeska 8,588,000 8,589,000 UniSea 19,685,000 19,687,000 Westward 8,980,000 8,981,000 Total 60,788,000 83,097,000 City Resources -Geothermal 60,788,000 80,290,000 Diesel 0 2,807,000Total60,788,000 83,097,000 Processor Loads and Resources - Alyeska: City Purchase 8,588,000 8,589,000 Diesel 4,558,000 4,558,000 Total 13,146,000 13,147,000 UniSea: City Purchase 19,685,000 19,687,000 Diesel 10,888,000 10,888,000 Total 30,573,000 30,575,000 Westward: City Purchase 8,980,000 .8,981,000 Diesel 6,794,000 6,794,000 Total 15,774,000 15,775,000 e ! --DaG-3-91 MON 14°05 RW BECK/SEATTLE CONSULT FAX NO,206 441 4964 P,05 Memorandum to: File -4-Deveanber 6,1991 With respect to the above table,it can be scen that the energy used from the geothermal resource is approximately 60 million kilowatt-hours por year without therospecuveloads,and approximately /y kiiowan-hours per year with the prospectiveoads.(The prospective load cannot be included in the load projection unless there are arrangements in place for the City to serve the prospective loads.)The model shows asmallamountofuseofCitydieselsinCaseNo.2,This use of diesels in Case No.2 istomeetpeakingrequirementsduringcertaintimesoftheyear. With respect to the processors,we used a maximum demand on the City system of 1,200 kW for Alyeska and Westward,and a maximum demand on the City system of 2,400 kW.for UniSea.This results in the City serving approximately 62%of the energyrequirementsoftheprocessors,with the remaining 38%of the energy requirements oftheprocessorsbeingmetbytheprocessors'own diesel generation. _Dare Hebhea-ave relsby” DH:awh attachment ©)12.0 fewh (19%) IMVERENT”Cmiey 1994,7995S" Total Revenues Expenses Operations and Maintenance: Insurance Administrative and General Property Taxes Fluid Fee Fluid Fee Credit Total Expenses Net Operating Funds Other Income: DSR Interest Earnings Oper.Reserve Interest Income R&R Fund Interest Earnings Prior Year's Surplus Revenues Total Funds Available for Debt Service Annual Debt Service Funds Available for Other Costs Other Costs: Deposit to Operating Reserve Fund Deposit to R &R Fund DSR Loan Payment Surplus Revenues Revenues from Sales (cents/kWh) City Costs Delivered Costs:(cents/kWh) Nominal 1991 Price Levels Debt Service Coverage Ratio Energy Sales at Delivery Point 75,000 ALASKA ENERGY AUTHORITY UNALASKA GEOTHERMAL PROJECT Annual Costs of Power (Dollars in Thousands) 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 9,557 9,987 10,437 10,906 11,397 11,910 12,446 13,006 13,591 14,203 1,777 1,856 1,940 2,027 2,119 2,214 2,313 2,418 2,526 2,640 157 164 171 179 187 195 204 213 223 233 141 147 154 161 168 176 184 192 201 210 0 0 0 0 0 0 0 0 0 0 3,600 3,600 3,600 3,600 4,275 4,275 4,275 4,275 4,275 4,275 (2,000)(2,000)(2,000)(2,000)(1,000)(1,000)(1,000)(1,000)(1,000)(1,000) 3,674 3,767 3,865 3,967 5,749 5,860 5,977 6,098 6,225 6,358 5,883 6,220 6,572 6,939 5,648 6,050 6,469 6,908 7,366 7,845 759 759 759 759 759 759 759 759 759 759 195 195 195 195 195 195 195 195 195 195 197 189 180 182 172 164 167 157 146 150 1,453 1,868 1,561 1,598 2,004 1,084 557 453 m7 1,549 8,487 9,230 9,267 9,672 8,778 8,251 8,147 8,471 9,242 10,497"$35 )6,88.6,885 6,885 6,885 6,885 6,885 6,885 6,885 6,885 2,652 2,345 2,381 2,787 1,892 1,365 1,261 1,585 2,357 3,612 0 0 0 0 0 0 0 0 0 0 25 25 25 25 50 50 50 50 50 75 159 759 159 159 159 159 159 759 159 159 1,868 1,561 1,598 2,004 1,084 557 453 7711 1,549 2,778 12.7 13.3 13.9 14.5 15.2 15.9 16.6 17.3 18.1 18.9 16 1.6 L7 18 19 2.0 2.0 21 2.2 2:3 14.3 15.0 15.6 16.3 17.1 17.8 18.6 19.5 20.4 21.3 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 1.45 1.34 1.35 1.40 1.27 1.20 1.18 1.23 1.34 1.52 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 ()12.06 [¢abl (79918)(4 TER ETT Oalcy IPGL 1995" 2005 2006 2007 2008 2009 2010 14,842 15,510 16,208 +=«16,937 «17,699 18,496 2,759 2,883 3,013 3,148 3,290 3,438 243 254 266 278 290 303 219 229 239 250 261 273 0 0 0 0 0 0 6,278 6,278 6,278 6,278 6,278 6,278 9 Q Q 9 Q 9 9,499 9,644 9,795 9,954 10,119 10,292 5,343 5,866 6,412 6,983 7,580 8,204 759 759 759 759 759 759 195 195 195 195 195 195 139 128 133 120 107 113 2,778 1,495 24 504 842 1,738 9,214 8,443 8,223 8,560 9,482 11,009 6,885 6,885 6,885 6,885 6,885 6,885 2,329 1,557 1,337 1,675 2,597 4,123 0 0 0 0 0 0 75 75 75 75 100 100 159 759 159 159 159 159 1,495 724 504 842 1,738 3,265 19.8 20.7 21.6 22.6 23.6 24.7 2.4 2.5 2.7 2.8 2.9 3.0 22.2 23.2 243 25.4 26.5 27.7 12.0 12.0 12.0 12.0 12.0 12.0 1.34 1.23 1.19 1.24 1.38 1.60 75,000 75,000 75,000 + =«-75,000 +=75,000 -75,000 \ Cheer ners_ Ole IMR Connterty Sysrneee Conmals JAeAwiestaAlt GirnkATer3s Sroevenrot-twe SFeWheJOUbur Sl.WHO wtéarzanes spt TS AqCrtsewty 2 7 4.Cesp EffemaAra Fir dnone £30.AS Adsemelrns Lomet >Ate perthy,4 BE etter ?oe 45 bow.Bain FI 425 Feet Fee BI4eas ¢ G.1S Pern veLmret/Var surwont @Se&2 Spot FAres (ove Sie fresco ars ) lL,OFT oF wehtes fart of Alt cost oe c ??(Emm 45 Aart ,ee hEAWei of-wees 2.RYN ee Fore For ial ACR cosh:ASOEwusucet ifppLast”PensateNeniepeOESD15FistsKiesatre pinnae verte, (CJ Fuvieg FStS..Peer Tre GES wns (a)Cowsreetrn Co)oft_coe A)vevtrorerent Fee FT? C Fiance tn fret.)_G-Sestwuce 46 ow Reneishre eof G55E..-=oe Ate wernt f commmrcr®sworn Svan, Ack ewer wa AcCEtS re OESL,.ae coo - ee ee - -- at ReaAogee Nate ageood. wet wae rereer,re CJ4ee wae a 4 ry,a a -|a 7 (-Bo4 ceerhrmem feswtt ser ov OfSE Faw Fitte Y rro ¥Mam.Bm.PeACE fish. Ft Batre Bae./Poon SMnsk Fon ferret 73 Conmsrevnina AGASSHET US prnarty Paw,v0 LaNANnG ane (Jap.TT V9 Spor Wow po wl Wnfy fore Sovretd ow atc wate = Denk AtCCLY Tact Cis o SV CCEIS PIL ca mye ttre ) Comyttmae Vi,Avec Tavtt Davis Bacaes wates t CAWT EL05€Bangintk ° e wg YPS.8.1m eA w/Fis eves EC =te, AL'VG 4 37357SM 20.49 Wives 9a.vove Urmat rnrergy oyYs WOoLg-O2] UNALASKA GEOTHERMAL PROJECT OUTLINE OF CONSTRUCTION AGREEMENT Basic Agreement Agreement will be betweea AEA and AMOR 10 ("AMOR"),a Delaware registered subsidiary of OESI,which is duly authorized to conduct its business in Alaska. The Agreement will provide for AMOR to: (i)Obtain all permits necessary to construct the facilities and operate the Project; (ii)Perform all design,procurement and construction of the Facilities;and Gii)Start up and commissioning of the Project by successfully completing Acceptance Testing,and providing drawings,manuals and other documentation and training of operations and maintenance staff,as required to place the Project into Commercial Operation on a continuous basis. At Acceptance,the Project is to be capable of providing 12,000 kW of capacity and 88,000,000 kWh per year at the point of interconnection with the electrical system of the City of Unalaska,as certified by the Independent Engineering Consultant retained by the AEA.Acceptance Tests will consist of a six-hour Capacity Test and a 25-day Performance Test,as mutually agreed upon.ComerTheFacilitieswillbeconstructedforafixedpricewithAcceptancebya specified date following the authorization to proceed,excluding changes fin scope (requested by AEA or engendered by governmental action)or Force Majeure events. The engineering and construction will be carried out in accordance with a Development a eh "A "afhahaePlanwhichwillbereviewedandapprovedbytheproject's Independent Engineering) *Consultant prior to the execution of the Construction Agreement.The plan is to includethefollowing: (@)_-A description and status of all permits and approvals required to construct and operate the Project; (ii)Description of power plant equipment including process flow diagrams,one line electrical and P.I.and D.schematics,plant site location,plant layout and heat and mass balance diagrams;- +specs (ste) (il)A List of all applicable building and construction codes and specifications which will be followed in the construction of the Facilities; 1 November 4,1991 wewes casi ey va WMuLla'uzgy 37575M pram(iv)A description,map,mou.specification for the roads,pipelines,docks and transmission line; -_ (v)A detailedd Construction SSchedule;rNeeoe'(vi)_The Field2Field.Development Plan to incltua)aan updated review of the reservoirassessment,proposed well locations,drilling programs,well testing programs and an anticipated well maintenance and replacement program; yw oe(vii)The Project,price including direct and indirect costs shown as line items with adetailedconstructionfundingdrawschedule; (viii)The Facilities Operation and Maintenance Plan including required staffing, equipment,spares and consumables and logistics support. Scope of Agreement cea ee a.Except for.AEA furnished items,AMOR shall furnish all labor,materials,tools,supplies,equipment,transportation,logistics support,supervision,technical services, professional and other services and perform all operations necessary to engineer,procure and construct the Facilities. b.The Facilities will consist of all items necessary to generate and transmit the electricity to the City's electrical system excluding the geothermal wells but including,but not limited to: (i)The Power Generation Plant; cil)The computerized central station control including SCADA equipment and remote Instrumentation; Gii)-All auxiliary power plant systems including,as required,compressed air,motivefluidstorageanddistribution,fire detection and suppression,emergency maintenance power,non-interruptible computer power,lighting,drinking water,building HVAC,sanitary facilities and other utilities;systems; (iv)--Power Plant substation and transmission line; (v)Roads,docks and associated civil work; (vi)Operation and maintenance buildings and staff support facilities; (vii)Maintenance equipment,vehicles and spare parts; (viii)Manuals and as built drawings; (ix)Permits and approvals to construct and operate the Plant;and 2 November 4,1991 LL/'Uaryl 15:50 WUE 355 5656 Ormat Enersy Sys 0158-021 37575M Jew ACOoaveeas °:pe es "remeeeaa7qav(x)The interconnection to the City's systern (to be constructed by others along withprojectfundedupgradestotheCity's systern). The Agreement will include customary provisions for: + (i)Review of detailed engineering drawings,geothermal data and monitoring of work bythe Independent Engineering Consultant,for conformance to design objectives,construction and quality standards and schedules; (ii)Periodic updating of Schedules and Budgets; (iii)Personnel qualifications,safety standards,adherence to labor regulations,permits and statutes; (iv)=Record and documentation format and maintenance requirements,including drawing control; (v)Changes in scope as requested by AEA or AMOR; (vi)Requirements for bonding,procurement,approval of subcontractors,and lien releases from suppliers and subcontractors; (vil)Confidentiality; (viii)Suspension of work,termination and Force Majeure events; (x)Defaults,cure and dispute resolution;and AMOR will maintain a "Builders All Risk”insurance policy on the Facilities during construction and Acceptance Testing in amounts and scope satisfactory to the AEA.In addition,AMOR will maintain Workman's Compensation,Employer's Liability and General Liability insurance,as required. The Work will be completed subject to Acceptance by the AEA based on the successful completion of the Acceptance Test and substantial completion of construction with only a minor deficiency punch list remaining. AMOR shall provide a Facilicy wrap-around warranty,based on industry standard warranties obtained from suppliers and subcontractors.The base warranty period shall be for one year after Acceptance for all major equipment and construction items.AMORshallenforcetheFacilitywarrantiesfortheinitialwarrantyperiod,or any extensions after Acceptance,on behalf of AEA. All State of Alaska codes and standards including seismic codes,shall be identified and compliance certified by the Independent Engineering Consultant. \ % t 3 November 4,1991 37575M 2 / The AEA shall provide AMOR with the rights to construct on the Project site as well as all necessary rights-of-way for access to the Project. YY 2 The Construction Agreement shall be subject to the laws of the State of Alaska. Schedule a.A detailed Project Schedule,including Facilities construction and Field Development activities,in timeline format,will be included as an exhibit to the Construction Agreement.(Brticut BLVE0 00 EW 4°Bet) The major Construction Agreement milestones are listed in the attached Table 1,along with the cumulative anticipated expenditures,as of the milestone dates. Payment a.The total compensation to AMOR under the Construction Agreement,including reimbursement to OESI for construction related activities prior to closing of financing, will be $57,400,000. The construction related activities performed priorto closing,to be reimbursed under thebondfinancingresolutionincludediréstandindirectcostsrelatingto:"we ?t @))Site reconnaissanceandsurveys;9.ass ES cask Gi)- Preliminary Engineering;Se are (iii)Preparation of Development Plan;and (iv)Permitting and related activities. Progress payments during construction will be made monthly by the Trustee holding the bond sales receipts,based on AMOR submitting an invoice to AEA,which will be verified by the Independent Engineering Consultant,and will be accompanied byappropciatsupportingdocumentation..2 POPrAISO AX Aca +re An amount of 10%of each progress payment invoice will be retained by the Trustee pending final completion of the Facilities and Commissioning of the Project. To the extent that there are cost overruns,AMOR will guarantse to pay such "overruns” in construction costs in excess of theAEAfunding,providedthatthere have been nochangesinngesinscope.Ke as©CONMTALL 194s ce ero &AMOR will also pay liquidated damages equal to $5,000 perday up to a mutually agreed” upon maximum if the Acceptance (and initiation of Commercial Operation)does not occur by the contract date,which will be 24 months from AEA's issuance of the "Authority to Proceed"with construction,provided there have been no delays caused byeitherAEAoraForceMajeureevent.cag coe The Facility Acceptance for Commercial Operation will be based on substantial completion of construction and the successful completion of the Acceptance Test.The 4 November 4,1991 wee wewe oe we WvL.o vel ae Acceptance Test of the Facility is to be performed with geothermal fluid at designconditions.AMOR will guaranty that the power plant will perform at the specified levels_._during the Acceptance Test)based on the geothermal fluid flow as specified.In the event Aue-tothe xy the Acceptance Test criteria is not met,_anen AMOR will correct the deficiency at its own expense.: ao 4:?rm .ooY 37875 November 4,1991 --e --ee a weerse www www Vameow musi Bg vzo WuLaerusgl TABLE 1 UNALASKA GEOTHERMAL PROJECT CONSTRUCTION MILESTONES Se ET eee ee eee ea a na COMPLETION DATE CUMULATT E MILESTONE DESCRIPTION 1991 {°1992 1993 ($000) I.PRELIMINARY DEVELOPMENT 1.Permit Applications 11/15 2.Development Plan 12/6 3.Preliminary Design &Engineering 1/30 1 4.RFQ for construction and long lead items 3/1 5.Permit Approvals 3/15 $800!_| IL.CLOSE FINANCING 3/0 NOTE 2 | mM.FACILITY CONSTRUCTION 1.Place P.O.s for long lead items and subcontracts S/1 NOTE 3 2.Detailed Facilities Engineering ,e First Phase Construction °Second Phase Construction S/15 of 1,800 3.First Phase Construction roads,wellpads, docks and camp 7/30 8,40C 4.Second Phase Construction °Complete site civil work 6/30 1 °Receive equipment on site $/31 e Complete mechanical work 8/30 e Complete electrical work 8/30 e Complete transmission line 7/130 e Complete interconnection 8/30 °Complete Facility Construction 9/1 1 ,50,76 5.Startup and Test e Startup of Plant 9/30 e Acceptance Test 10/30 e Complete punch list 11/30 °Commissioning 12/31 51,76' 6.Release of Retention 57,40' ---_ere a --<---ee LT COMPLETION DATE CUMULATI'E a|FUNDINGMILESTONEDESCRIPTION199119921993($000) FIELD DEVELOPMENT 1.Observation Well Drilling 7/31 2.Drill and test first production and injection wells 10/30 3.Updated Resource Assessment 11/30 4.Complete Drilling and Field Development 7/30 NOTE 6 ee a ee aps _-- NOTES 1.These are estimated costs to be reimbursed at closing. 2.These transaction costs are outside of the Project construction funding. 3.Down payments or other cancellation charges or commitments are undefined at this time. 4.Consists of full construction financing less retention holdback.e@ ee 5.Release of retained funds to be covered by Construction Agreement. eee” 6.Field Development funding is by OESI equity investment. as1Ve "NU vuVU urmat Energy Sys 020/021 STATUS REPORT UNALASKA GEOTHERMAL PROJECT The following is a list of the major items pertaining to the development of the Unalaska Geothermal Proje t, along with the current status of activities.The intent is to update this status report on a bi-weekly basis so as :o keep all parties abreast of the Project status. eds >2STATUS j Letter Agreement between AEA and OESI Signed on September 27,1991 _ J Consultants review of Project design and R.W.Beck retained by AEA.03/08/924economicsbyR.W.Beck Kickoff meeting held on October Final4,1991 Consultants review of geothermal resource GeothermEx,Inc.retained by 03/08/92 development and capability AEA.Kickoff meeting held on Final October 4,1991 Preliminary review by R.W.Beck and "Fatal Flaw”analysis of project 12/27/91 GeothermEx elements a {Review and finalize Power Sales Agreement Second draft reviewed on 01/08/92betweenAEAandCityofUnalaska10/24/91.AEA to present PSA to Execute City Council on 11/26/91,Final draft for Council to be approved on 1/07/92, Review and negotiate Power Sales Agreements |Meeting held with Westward and 0/08/92 }between City ad Industrial Customers Alyeska on 10/4/91,Meeting Execute with three major processors Jar cscheduledfor11/20/91.°_ Obtain permits and agency approvals On-site survey completed.L1/15/9t Applications in process.Apply for permit . -03/08/92 approval Obtain rights-of-way for roads,transmission AEA notified Ounalashka 12/27/91 lines and dock facility.Corporation of intent to obtain rights-of-way on 09/30/91 OESI notified Aleut Corporation of incidental subsurface usage, relative to road and transmission line construction,on 10/17/91 _| 37531M_November 4,199 = So -..ITEM .STATUS.°|__|:COMPLETION: Detailed Development Plan for power plant OESI technical team made on-site 12/0691 and field surveys on 09/14/91 and Final 10/17/91.Peratovich,Nottingham &Drag performed on-site reconnaissance on 10/17/91. OESU/AEA Contract Documents OESIT to provide structure memos 01/15/92 ©Construction Agreement by 11/4/91 for initial review,Execute ©Operations &Maintenance Agreement Draft Agreements by 11/18/91. ®Fluid Sales Agreement a Bond Documents Bond documents to be prepared by 01/22/92 Bond Counsel for review by Final 11/08/91 Debt Service Reserve loan by State of Alaska |AEA to follow up with Revenue 01/10/92 Commissioner or AIDA during the |Final Commitmes week of 11/11/91. Raring Agency -Bond Insurer meetings To be scheduled by Nuveen/AEA 01/31/92 Bond Sale Based on placement of bond 03/13/92 insurance. Closing Following sale of bonds.03/3192 _| Issue purchase orders for Jong lead items and |OESI to release contracts after 5/01/92 contracts for detailed engineering,first phase closing based on preliminary construction and drilling.engineering and design and other activities performed prior to closing. First Phase Construction -roads,dock and Projected based on financing.05/01/92 support camp.Begin | Begin drilling activities Projected based on financing.06/01/92 Finalize Resource Development Pians Based on review of drilling and 11/30/92 testing during June through October 1992. Second Phase Construction Full release of power plant and 04/01/93 transmission line construction.Begin _ Completion of Construction Including plant Start-up.09/0193 _ Complete Acceptance Testing Plant into Commercial Operation.10/30/93 =a 37531M November 4,199 POWER CORPORATION 8 MEMORANDUM TO:Mark Earnest,City of Unalaska Brent Petrie,Alaska Energy Authority Jim Seagreaves,Nuveen and Company Roe Sturgulewski,City of UnalaskaJackWood,OESI Consultant internal Bob Anderson Paula Lausa Gary Bell Pat McAllister Bill Berge Jim Porter Dave Brown Hezy Ram Joe Fahrendorf Zvi Reiss Zvi Krieger Dan Schochet FROM:©Greg R.Retzlaff -Project Manager DRE DATE:March 10,1992 SUBJECT:UNALASKA GEOTHERMAL PROJECT February Progress Report Attached is the subject report for your use and information. Please circulate appropriately within your organization. Attachment GRR274.Men:jsa Building One,Suite 255 ©4000 Kruse Way Place ©Lake Oswego,Oregon 97035 Phone:503-636-9620 ®FAX:503-697-0288 UNALASKA GEOTHERMAL PROJECT PROGRESS REPORT FEBRUARY 1992 Greg Retzlaff Project Manager March 10,1992 TABLE OF CONTENTS EXECUTIVE SUMMARY .......cceccccccccs wee eceees oe DISCUSSION 1. 2. Permitting .....ccccccccccccrccccces ENGineering ..ccececccecnanncccccnce PYOCUTEMENtE ..cee reece reese nce cveee CONSTFUCTION occ cece ewww creer cncee RESOULCES eee cccr reece sceccssccvce LOGISTICS cecrecererencesesaseessvece APPENDICES A.Schedule Overview Major Milestones Status of Permits and Regulations Selected Equipment and Services EXECUTIVE SUMMARY Recent developments in project financing,delays in permitting,and the identification of a restricted stream construction period of August 15 through September,have revised the schedule for road construction to begin October 1,1992 and continuing through the end of the year.This will allow adequate time for a road to be pioneered to the South Plateau in preparation for a spring drilling program beginning May 1,1993.Engineering necessary to allow procurement of long lead items will be released in March.The OEC's must be on order by April 1,1992 to support the schedule. Permitting is currently the most critical area to maintain the new schedule.Another field trip will be required to perform a number of duties,including some that were not able to be accomplished during the last reconnaissance because of high snow levels. Engineering for road design will be delayed commensurate with the revised road construction schedule.This engineering will be awarded in the May -June time frame depending on the progress offinancialclosing. Page 1 DTESCUSSTON PERMITTING Preliminary engineering of the road,bridges and pier has been completed by Peratrovich and Power Engineers,and forwarded to Dames &Moore for preparation of the permit applications. The permitting process has been slow for a variety of reasons, including the inability to obtain accurate field data because of high snow levels in the valley.The permit applications are expected to be completed and submitted by April 1.This will allow 90 days for the permit review and approval process. Another field trip is required as soon as the snow levels drop.This trip will be used to perform a fish assessment for the new road alignment,complete a side stream assessment, survey the bridge crossings,and survey the title lands.This work will be performed at the earliest date possible as it is required to support the final permit. ENGINEERING PN&D has completed their seismic testing and boring along the road alignment.The information included in this report will be invaluable when detailed engineering begins.The results indicate there is adequate material in these borrow sources to construct the road on the valley floor.One major borrow source is located adjacent to a Native Allotment.A temporary access permit is available from the Bureau of Indian Affairs. This permit is being pursued to allow use of this borrow source and to allow barge beach landing at that location for unloading construction equipment. Since the commencement of road construction has been moved to October 1,1992,engineering for same will not be released until approximately May or June,depending upon the progress of financial closing.Proposals for engineering the road, bridges and pier have been received.A third proposal has been solicited since one firm elected not to bid. Broad Bay has been eliminated as a port location for three reasons.Extensive discussions with the residents,fishermen, and Harbor Master suggest that during the four or five winter months this bay will be inaccessible 50%of the time. Secondly,the ocean bottom survey suggests that a Broad Bay pier would be nearly twice as long as a pier in Nanteeken Bay. Lastly,there is evidence that Broad Bay Beach has eroded approximately 50 feet in four years. Page 2 Proposals are being solicited for preliminary electrical engineering adequate to allow preparation of specification for long lead time items. PROCUREMENT With the revised schedule,an April 1,1992 order date for the OEC's is required.An order for the main power transformer and other substation equipment will be required in the next few weeks to support the schedule. CONSTRUCTION N/A RESOURCES The revised schedule will require that all wells be drilled in 1993.There will not be adequate time in '92 to pioneer a road to the South Plateau and drill a production well.This will provide a drilling program with more continuity,but the last well will not be completed until approximately November 1,1993.Therefore,drilling and testing activi- ties will be occurring late in the plant construction period. A drilling plan was developed and additional drilling contractor input has been received.However,further planning is necessary to assure that an integrated logistics plan, incorporating all construction activities,is in place. Please see item #7 below for a further discussion. START-UP,CHECK-OUT AND TESTING N/A LOGISTICS An Integrated Logistics Plan is being developed to assure that movement of people and equipment for all aspects of construc- tion has been considered.The purpose of this plan is not only to prepare for all such movement,but to assure it is done in the most cost-effective manner possible. Page 3 3c Name :Unalaska Geothermal ProjectRopedulsple:Greg ketzlaff As-of Date :11-Mar-92 Schedule File :UNALASKB APPENDIX A 92 93 94 Start Duratn =End Pet Mar MayJun AugSep Nov Jan MarApr JunJul SepOct Dec Feb Task Name Date (Days)Date Achv 2 1 1 301 4 1 1 1 1 1 1 t 1 |peRMrts 16-Mar 72 25-Jun 0 |===S==ZS===........... Complete Application 16-Mar 12 1-Apr QO jmm ..7 ..oe ...°|Permit Review Period 1-Apr 60 25-Jun 0 nea 2 ll ....7 .. |Field Survey/Assess 22-Apr 25 28-May 0 am .-..7 .oe .. Obtain Permits 25-Jun 0 25-Jun 0 -«M....7 7 7 .. |FINANCING/CLOSING 1-May 42 1-Jul 0 ES===ae (tw ........... Term Sheet 1-May 0 1-May 0 M ......7 . Financial Closing 1-Jul 0 1-Jul 0 .- M ........... ENGINEERING 15-Apr 150 18-Nov 0.SSSSTSSSSSSSSlsscaca ........ Issue PO Concept Eng 15-Apr 0 15-Apr 0 Me..-6 ...7 ... Perform Concept Engr 15-Apr 75 31-Jul 0 a ...oe .7 .. Issue RFQ Detail Eng 29-Apr 0 29-Apr 0 M ....<6 .-.. Bid/Eva]Detail Engr 29-Apr 40 25-Jun 0 a ltl ..oe .... Tssue PO Detail Engr 25-Jun 0 25-Jun 0 .©M 2...oe o 2 .. Perform Detail Engr'25-Jun 100 18-Nov 0 -»Mesos ..6 oe 7 .. ROAD,BRIDGES &PIER 1-Jun 280 13-Ju)0 .SESSSSLTSSSSSollslssslflisstsssesicx=.... Road Engineering 1-Jun 25 7-Jul 0 .aie....7 oo.*.. Bids and Award 7-Jul 25 11-Aug 0 ..iit ,..*7 7 8 .. Award Road,Bridge &11-Aug 0 11l-Aug 0 oe M....*ry .. Procure Bridge &MOB 11-Aug 35 30-Sep 0 7 a,.oe .oe . Pioneer Road S Plate 30-Sep 60 29-Dec 0 ery -»iirc oe .8 oe .. Winter Shut Down 29-Dec 75 16-Apr 0 oe *.Enamel .6 er .. REMOB &Finish Road 16-Apr 50 28-Jun 0 .6 ...Mice,7 .. DEMOB 28-Jun 10 13-Jul 0 --..oe .tes - OEC Ship via Seattle 1-Apr 240 17-Mar 0 SESSRSSSSSSSSSSSSSslflfissesFle==...... Order OEFC 1-Apr 0 1-Apr 0 M..oe ..«oe .6 . OEC Manuf/Nel Seatt]1-Apr 240 17-Mar 0 ee ae --. T-LINE LAND 16-Mar 248 11-Mar 0 |SSSSSSSSSSSSSSllSleaesfslfisissice=...... PO to prepare spec 16-Mar 0 16-Mar 0 |M .oe ..«oe oe 2 .. Prepare spec 16-Mar 37 6-May 0 |-=-mum oe ..7 -.8 .. Issue RFQ &evaluate 6-May 30 18-Jun 0 ---....oe oo.7 °. ,PO for land cable 15-Jul 0 15-Jul 0 -6«Me eo o 7 6 ..... j Manufact land cable 20-Jul 140 10-Feb 0 .RR «... Deliver to Seattle 10-Feb 20 11-Mar 0 ee oe ..eam ,..6 .. |T-LINE SUBMARTNE 1-May 215 12-Mar 0 ZESSSSSLSLTSLLSSLSESflssssos ...... :T-line Sub Pre-engr'1-May 30 15-Jun 0 no -..*oe 8 .8 . Ocean Bottom Survey 1-Jun 30 14-Jul 0 .mm....oe ee .° Tssue RFQ &Evaluate 21-Jul 20 18-Aug 0 .mm ...... @@M@ME Detail Task Summary Task eeees Baseline esl@@m@®(Progress)(Progress)>>>Conflict eami-(Stack)=Se- (Slack).."8M Resource delay Progress shows Percent Achieved on Actual M Milestone okalalakalelnianetenenataienanenetel Seale:8 days per Character --re rere rrr rrr rrr rn rrr nr nnn nm mm nn nm nnn nnn Schedule Name :Unalaska Geothermal Project Responsible :Greg Retzlaff As-of Date :11-Mar-92 Schedule File :UNALASKB 92 93 94 |Start Duratn End Pet Mar MayJun AugSep Nov Jan MarApr Jundul SepOct Dec teb Task Name Date (Days)Date Achv 2 1 1 3.041 2 4 1 1 1 4 1 2 1 I | Issue PO ,Sub cable 18-Aug 0 18-Auy 0 .M....eo... :Manufact Submin Cable 18-Aug 120 11-Feb 0 .-_CEES,.oe .. |Deliver to Seattle 11-Feb 20 12-Mar 0 oe .6 .-wom .-* :SUBSTATION LONG LEAD IT 16-Mar 250 15-Mar Q |SSSSSSlSSSSSlsslclllztiseseseieee2....... Elect Spec Prep 16-Mar 10 30-Mar QO |am .«..oo.*oe ... Issue KFQ &Evaluate 30-Mar 20 27-Apr 0 Wm,=....7 6 7 ... Issue PO for Transfr 27-Apr 0 27-Apr 0 M .«...2.oe .. Manufact Trans 27-Apr 210 1-Mar 0 eee .8 ... Ship Trans to Seatti 1-Mar 10 15-Mar 0 oe ...Ms ,.7 °. Issue RFQ Other Elec 15-May 10 1-Jun 0 im,............ Issue PO Other Elect 1-Jun 0 1-Jun 0 -M 7 ..oo.8 .. Manufact Other Elect 1-Jun 180 19-Feb 0 .ene -7 .. |SHTP SEATTLE:TO SITE 15-Mar 50 24-May 0 ......ertfterrit...*.. Stage Goods Seattle 15-Mar 20 12-Apr 0 oe +6 ..-dae ry ... Ship Sea/Dutch/Site 12-Apr 30 24-May 0 -....deme,oe °. PLANT CONSTRUCTION 15-Apr 220 3-Mar 0 °......eZDSSSssasaeSSFSSises22s552e05 Mob Plant Constr 15-Apr 10 29-Apr 0 .8 oe .«Mile ... Constr Civil/Found 29-Apr 40 25-Jun 0 oe ...go CLL,... Plant Constr 25-Jun 110 3-Dec 0 .°.°.»CRA aaa . Startup &Checkout 3-Dec 40 2-Feb 0 7 6 ...eo..*ay Acceptance Testing 2-Feb 20 3-Mar 0 o 6 *6 ..oe ee ..Lae AEA Acceptance 3-Mar 0 3-Mar 0 ee .....°-M RESOURCE 15-Apr 135 27-Oct 0 e ....°.ertsrrttsisetsistscc Mob Drill Rig 15-Apr 15 6-May 0 oe ....im,..°° Drill First Prod W 6-May 20 4-Jun 0 .+8 ...-.Mom.... Drill Second Prod wW 4-Jun 20 2-Jul 0 .6 eo oe .°«oe el ... Drill Third Prod Ww 2-Jul 20 2-Aug 0 .7 ..».Wise .. Drill First Inj 2-Aug 20 30-Aug 0 .es «ee ..7 .ithe,°. Drill Second Inject 30-Aug 20 28-Sep 0 ...:7 . -. Complete Well Testin 28-Sep 20 27-Oct 0 ....oo.1 .im Demobilize Drill Equ 28-Sep 15 20-Oct 0 ....-7 .=e MMM Detail Task =Summary Task coer?Baseline "eM (Progress)=(Progress)>>>Conflict @um-(Slack)=Z=-(Slack)."M8 Resource delay Progress shows Percent Achieved on Actual M Milestone |ween een e cernsH-Scale:8 days per character -rrr rrr rrr mmr rrr rn mn rn nn nnn mn nnn nmr nnn MATOR MILESTONES EVENT DESCRIPTION Complete development of logistics plan Award road,bridge &pier engineering contract Place order for OEC's Select mechanical/electrical engineering firms Obtain financing Award road,bridge &pier contract Start road,bridge &pier construction Place order for underground cable Place order for submarine cable Begin drilling first well Complete pier &pioneered road to South Plateau Complete road &bridges All material shipped to staging area All material shipped from staging to Dutch Harbor &site Begin plant construction &drilling of first well _ Complete well construction Complete plant construction Complete plant check-out and testing Begin AEA acceptance test AEA final acceptance MODIFIED TO REFLECT REVISED CONSTRUCTION SCHEDULE SCHEDULED 03/20/92 06/15/92 04/01/92 07/15/92 07/01/92 08/15/92 10/01/92 07/15/92 08/15/92 05/01/93 01/01/93 06/15/93 03/15/93 06/01/93 05/01/93 11/01/93 12/01/93 02/01/94 02/01/94 02/15/94 Appendix B ACTUAL March 9,1992 APPENDIX C SUMMARY AND STATUS OF ENVIRONMENTAL PERMITS AND OTHER APPROVALS UNALASKA GEOTHERMAL PROJECT The following table gives the status of the various permits and other approvals that must be obtained to construct and operate the Unalaska Geothermal Project utilization facility and to drill and operate the project's geothermal wells.Approvals are expected on or before dates listed below. ae "Expected| 1.Alaska Department of Governmental Coordination (DGC) Coastal Consistency Determination Agency contacted.Permit 04/21/92 07/21/92 -assessment complete.Process . to begin with filing of 404 permit. 2.US Army Corp of Engineers (COE) Section 404 Permit Wetlands delineation survey to 04/21/92 07/21/92 :be modified for new road alignment.Application being assembled. Section 10 Permit Construction details being 04/21/92 07/21/92 assembled.Application being assembled. 3.Alaska Department of Fish and Game (DF&G) Anadromous Fish Stream Crossing Fish inventory to be completed 05/03/92 07/15/92 Permit in early spring for new road alignment.Application being assembled. 4.US Fish and Wildlife Service (USFWS) Section 7 Consultation 05/01/92 05/01/92 S.US Coast Guard (USCG) Aid Navigation 05/01/92 07/01/92 Fuel Transfer 05/01/92 07/01/92 10627R March 10,1992 Expected | Approval 2: "2 Date 22 6.Alaska Department of Environmental DEC permits and authorization Conservation (DEC)to be prepared and submitted as part of the Coastal Consistency Process Air Quality Control 05/15/92 07/15/92 Solid Waste Disposal 05/15/92 07/15/92 Sewage Treatment System 05/15/92 07/15/92 Waste Water Disposal 05/15/92 07/15/92 Certificate of Reasonable Insurance 05/15/92 07/15/92 7.Alaska Department of Natural Resources (DNR) Water Rights 05/15/92 07/15/92 Geothermal Production Well Permits 05/15/92 07/15/92 Geothermal Injection Well Permits 05/15/92 07/15/92 Tidelands Lease 05/15/92 07/15/92 8.Environmental Protection Agency (EPA) Underground Injection Control To be submitted after 09/01/93 12/01/93 Inventory completion of injection wells. 9.City of Unalaska Building Permits To be submitted throughout 08/01/92 10/01/92 construction process 10.State Fire Marshall Plan Review To be submitted throughout 08/01/92 10/01/92 the construction process as part of the building permit approval process 11.Rights of Way Pipeline and Road System on OESI To be obtained by AEA 05/15/92 07/15/92 Leases Road and Transmission Line through To be obtained by AEA 05/15/92 07/15/92 Makushin Valley 12.Site License To be obtained by AEA 05/15/92 07/15/92 13.SARA 311 and 312 requirements to 07/01/92 N/A be submitted after construction begins 10627R March 10,1992 14.OSHA Safety materials to be obtained prior to construction and located on site 15.Bureau of Indian Affairs (BIA) Temporary Use Permit Required to access native 04/01/92 06/01/92 allotment 16.Aleut Corporation Letter of Understanding Possibly required to appropriate gravel.State and OC may also require some type of authorization.Item being looked into further. 10627R March 10,1992 Appendix D SELECTED BFPOUTPMENT AND SERV TICES EQUIPMENT /SERVICE MANUFACTURER VENDOR Permitting Dames and Moore Prelim.Road Engineering PN&D ANALYSIS OF PROJECT COST UNALASKA GEOTHERMAL PROJECT The following is a comparison of the project costs as estimated by:(i)Dames &Moore in 1987;(ii) Power Engineers,Inc.in 1987;and (iii)OESI Power Corporation for construction in 1992-93. POWER ENGINEERS DAMES &MOORE INC,OESI 7 MW GROSS 7.3 MW GROSS 15 MW GROSS ITEM 1987 1987 1992-93 POWER PLANT Direct Costs $17,241,000 $10,881,000 $30,642,000 WELL PLANNING Direct Costs 4,128,000 2,840,000 7,061,000 TRANSMISSION LINE Direct Costs 5,655,000 3,619,000 4,596,000 ROADS &DOCKS Direct Costs 5,023,000 4,590,000 5,109,000 MOBILIZATION LOGISTICS 2,393,000 2,294,000 3,500,000 OTHER DIRECT COSTS 225,000 225,000 1,834,000 ENGINEERING,CONSTRUCTION MANAGEMENT AND INDIRECT COSTS 15,505,000 10,869,000 14,200,000 In comparing the costs,the following should be noted: 1.If the total costs in the 1987 cases are escalated at 4.5%per year to the 1992-93 time frame, these costs become: A.Dames &Moore -7 MW Gross L2e $49,120,000 x 42:25 B.Power Engineers,Inc.-7.3 MW Gross $35,180,000 x 1.25 Cc.OESI Power Corporation -15 MW Gross $61,400,000 $43,875,000 $66,942,000 It should be noted that the OESI case contains twice as many wells and is based on the experience of the OESI staff.In the Dames &Moore case,the Mesquite Group did,in fact,estimate the equivalent of $6 million for well drilling in 1992 for the 7 MW case. The double flash plant proposed by Power Engineers is not suitable for the application in this project due to the use of water cooling and the complexity of the process.The Dames &Moore plant is comparable to the OESI proposal. The "Other Direct"in the OESI case includes the upgrading of the City distribution system and a greater complement of spares. In the final analysis,OESI is proposing a plant which produces more than twice the previously |proposed power levels for:(i)10%more in cost (Dames &Moore case);or (ii)54%more in cost (Power Engineers case). STATUS REPORT UNALASKA GEOTHERMAL PROJECT The following is a list of the major items pertaining to the development of the Unalaska Geothermal Project, along with the current status of activities.The intent is to update this status report on a bi-weekly basis so as to keep all parties abreast of the Project status. Letter Agreement between AEA and OESI Signed on September 27,1991.- Consultants review of Project design and R.W.Beck retained by AEA.03/08/92 economics by R.W.Beck Kickoff meeting held on October Final 4,1991 Consultants review of geothermal resource GeothermEx,Inc.retained by 03/08/92 development and capability AEA.Kickoff meeting held on Final October 4,1991 Preliminary review by R.W.Beck and "Fatal Flaw"analysis of project 12/27/91 GeothermEx elements Review and finalize Power Sales Agreement Second draft reviewed on 01/08/92 between AEA and City of Unalaska 10/24/91,AEA to present PSA to Execute City Council on 11/26/91.Final draft for Council to be approved on 1/07/92. Review and negotiate Power Sales Agreements |Meeting held with Westward and 10/08/92 between City ad Industrial Customers Alyeska on 10/4/91.Meeting Execute with three major processors scheduled for 11/20/91. Obtain permits and agency approvals On-site survey completed.11/15/91 Applications in process.Apply for permits -03/08/92 approval Obtain rights-of-way for roads,transmission AEA notified Ounalashka 12/27/91 lines and dock facility.Corporation of intent to obtain rights-of-way on 09/30/91 OESI notified Aleut Corporation of incidental subsurface usage, relative to road and transmission line construction,on 10/17/91 37531M November 4,1991 Detailed Development Plan for power plant OESI technical team made on-site 12/06/91 and field surveys on 09/14/91 and Final 10/17/91.Peratovich,Nottingham &Drag performed on-site reconnaissance on 10/17/91. OESI/AEA Contract Documents OESI to provide structure memos 01/15/92 e Construction Agreement by 11/4/91 for initial review.Execute ©Operations &Maintenance Agreement Draft Agreements by 11/18/91. e Fluid Sales Agreement |Bond Documents Bond documents to be prepared by 01/22/92 Bond Counsel for review by Final 11/08/91 Debt Service Reserve loan by State of Alaska |AEA to follow up with Revenue 01/10/92 Commissioner or AIDA during the Final Commitment week of 11/11/91. Rating Agency -Bond Insurer meetings To be scheduled by Nuveen/AEA 01/31/92 |Bond Sale Based on placement of bond 03/13/92 insurance. Closing Following sale of bonds.03/31/92 Issue purchase orders for long lead items and OESI to release contracts after 5/01/92 contracts for detailed engineering,first phase closing based on preliminary construction and drilling.engineering and design and other activities performed prior to closing. First Phase Construction -roads,dock and Projected based on financing.05/01/92 support camp.Begin Begin drilling activities Projected based on financing.06/01/92 Finalize Resource Development Plans Based on review of drilling and 11/30/92 testing during June through October 1992. Second Phase Construction Full release of power plant and 04/01/93 transmission line construction.Begin Completion of Construction Including plant Start-up.09/01/93 Complete Acceptance Testing Plant into Commercial Operation.10/30/93 37531M November 4,1991 STATUS REPORT UNALASKA GEOTHERMAL PROJECT The following is a list of the major items pertaining to the development of the Unalaska Geothermal Project, along with the current status of activities.The intent is to update this status report on a bi-weekly basis so as to keep all parties abreast of the Project status. Letter Agreement between AEA and OESI Signed on September 27,1991 -- Consultants review of Project design and R.W.Beck retained by AEA.03/08/92 economics by R.W.Beck Kickoff meeting held on October Final 4,1991 Consultants review of geothermal resource GeothermEx,Inc.retained by 03/08/92 development and capability AEA.Kickoff meeting held on Final October 4,1991 Preliminary review by R.W.Beck and "Fatal Flaw"analysis of project 12/27/91 GeothermEx elements Review and finalize Power Sales Agreement Second draft circulated for review 01/08/92 between AEA and City of Unalaska on 10/24/91 Execute Obtain permits and agency approvals Dames &Moore retained by OESI 11/15/91 on 10/11/91.On-site survey in Apply for permits progress -03/08/92 approval Obtain rights-of-way for roads,transmission AEA notified Ounalashka 12/27/91 lines and dock facility.Corporation of intent to obtain rights-of-way on 09/30/91 OESI notified Aleut Corporation of incidental subsurface usage, relative to road and transmission line construction,on 10/17/91 Detailed Development Plan for power plant OESI technical team made on-site 12/06/91 and field surveys on 09/14/91 and Final .10/17/91.Peratovich,Nottingham &Drag performing on-site reconnaissance on 10/17/91. 37531M October 18,1991 OESI/AEA Contract Documents OESI to provide drafts by 01/15/92 *Construction Agreement 10/30/91 for initial review by Execute ¢Operations &Maintenance Agreement 11/08/91. ¢Fluid Sales Agreement Bond Documents Bond documents to be prepared by 01/22/92 Bond Counsel for review by Final 11/08/91 Debt Service Reserve loan by State of Alaska |AEA to follow up with Revenue 01/10/92 Commissioner or AIDA during the |Final Commitment week of 11/10/91. Rating Agency -Bond Insurer meetings To be scheduled by Nuveen/AEA 01/31/92 Bond Sale Based on placement of bond -03/13/92 insurance. Closing Following sale of bonds.03/31/92 Issue purchase orders for long lead items and OESI to release contracts after 04/03/92 contracts for detailed engineering,first phase closing based on preliminary construction and drilling.engineering and design and other activities performed prior to closing. First Phase Construction -roads,dock and Projected based on financing.05/01/92 support camp.Begin Begin drilling activities Projected based on financing.06/01/92 Finalize Resource Development Plans Based on review of drilling and 11/15/92 testing during June through October 1992, Second Phase Construction Full release of power plant and 04/01/93 transmission line construction.Begin Completion of Construction Including plant Start-up.09/01/93 Complete Acceptance and Commissioning Plant into Commercial Operation.10/30/93 37531M October 18,1991 Alaska Energy Authority MEMORANDUM October 16,1991 To:Distribution LyFrom:Dick Emerman \AwAlaskaEnergyAuthority\\° Subject:|Unalaska Geothermal --Addition to Agenda,10/24 Meetings in Seattle As previously conveyed,the schedule of meetings with seafood processors on October 24 in Seattle is as follows: 1)Westward Seafoods /Greg Baker 8:30 -10:00 a.m. Meeting location:|Westward offices 1111 Third Ave.,Suite 2250 Seattle 2)Alyeska Seafoods /Win Brindl 10:30 -noon Meeting location:R.W.Beck offices 2101 Fourth Ave. Seattle 3)UniSea,Inc,/Dick Pace 2:00 -3:30 p.m. Meeting location:R.W.Beck offices 2101 Fourth Ave. Seattle Please add the following item to the agenda: 4)Discussion of draft AEA/City power sales agreement 4:00 -5:00 p.m. Meeting location:R.W.Beck offices The latest draft of the proposed AEA/City agreement will soon be available for review,and the gathering in Seattle on the 24th provides an opportunity to go over it together. Distribution: Alaska Energy Authority Charlie Bussell Brent Petrie City of Unalaska Polly Prchal Roe Sturgulewski OESI Power Corporation Dan Schochet John Nuveen &Co. Jim Seagraves R.W.Beck &Associates Ray Benish Hicks,Boyd,Chandler &Falconer Brooks Chandler Wohlforth,Argetsinger,Johnson &Brecht Eric Wohlforth Get-PANAFAX COVER PAGE = Please deliverto:"rent Yetrie Olrector of Agent Chem tins Transmitted from:_§J7 9,Sea grques ws John Nuveen &Co.Incorporated Seattle,Washington Number of pages,Including cover page:y Date:/O -+ Time: If there are any problems with transmission,please call: Lisa.at (208)587-_O754 Thank you! -_-ano T "4 pRCATac/MET mi TIT PHBE 8 NIOITAMA!KUNE hina CMe TESTI NUVEEN John Nuveen &Co.Incorporated 2740 Pacifie Firat Centre Telephone 206.587.0059 . Investment Bankers 1420 5th Avenua Seattle,Washington 98101-2888 -Review Draft Contract with Companies % t 2 ALASKA ENERGY AUTHORITY ?POWER REVENUE BONDS,SERIES 1992 4 Unalaska Geothermal Project £i Preliminary Financing Schedule :October 4,1991 i Date Time Activity Parties x 'Oct 11 2:30 p.m.Conference Call :Oct 24 8:30 a.m.Meetings with Companies -Seattle ALL Nov,4 9:00 a.m.Finanacing Team Meeting -Seattle ALL -Review Consultant Work -Review Draft Contracts -Review Bond Documents -Review Financing Schedule Nov.21 Meeting -Anchorage ALL -Document Review Dec.10 Meeting -Anchorage ALL -Final Draft PSA Dec,18 Board Approval -Construction Agreement Jan.8 Execute PSA/Construction Agreement Jan,22 Document Review Meeting -Seattle Jan 28 -31 Rating Agency/Bond Insurer Meetings -New York Feb.26 Bond Sale Mar.18 Closing *All times Pacific Daylight Time, Parties:AEA;Alaska Energy Authority BC:Wohlforth Argetsinger Jobnson &Brecht CITY:City of Unalaska CM:OESI CO's:Companies UW:John Nuveen &Co,Incorporated UWC:Katten Muchin &Zavis _ ooZa"d PASBISSL6T mi a1 IHaS-N7D 2 NAAAQN NHN Lind =GASCT TEETH A-19N ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992 (Unalaska Geothermal Project) Working Group Distribution List ALASKA ENERGY A ORITY BOND COUNSEL J Charlie Bussell _/Brie Woblforth Executive Director J Wohlforth Argetsinger Johnson <___iBrent Petrie &Brecht Director of Agency Operations 900 W.Sth Avenue,Suite 600 J Anchorage,AK 99501M__--Dick Emerman Telephone;907/276-6401 Alaska Energy Authority Telecopy:907/276-0983 P.O.Bax 190869 701 E.Tudor Road Anch AK 99519-0869Oraees5 UNDERWRITER Telephone:907/261-7262Telephone:907/261-7210 (Brent)aL James F,SeagravesTelephone:907/261-7253 (Dick)Vice President Telecopy:907/561-8584Py/John Nuveen &Co.Incorporated 2740 Pacific First Centre KA G RAL 1420 Fifth Avenue Seale,WA 98101-2333JvJamesF.KlasenAssistant Telephone:206/587-0959AttorneyGeneralTelecopy:206/382-1580 State of Alaska Department of Law1081W.ath Ave.,Suite 200 UNDERWRITER'SCOUNSEL Anchorage,AK 99501 /Lew Greenbaum Telephone:907/269-5100 Telephon oovieseeen Katten Muchin &Zavisecopy:f 525 W.Monroe Street,Suite 1600 Chicago,TL,60606-3693 CITY OF UNALASKA Telephone:312/902-5418Telecopy:312/902-1061_Y Polly Prchal City Manager A Roe Sturgulewski Director of Public Works City of Unalaska P.O,Box 89 Unalaska,AK 99685 Telephone:907/581-1251Telecopy:907/581-1417 PROJECT ENGINEER €a'd P%Scst9cLa6t nt a IHas-Ay -®NaaAnN NUNS Lins |AT ect ToC Tifa Inn pB'd WLOL vA Daniel N.Schochet- Vice President -Marketing mA Cliff PhilipsDirectorof Finance OESI Power Corporation 610 East Glendale Sparks,NV 98431 Telephone: Telecopy: PROJECT ENGINEER'S COUNSEL SL = Attorney at Law Perkins Coie 1029 West Third Avenue Suite 300 Anchorage,AK 99501 Telephone: Telecopy: NSUL ENGINEER Win Peterson Ray BenishINK,R.W,Beck and Associates Suite 600 2101 Fourth Avenue Seattle,WA 98121 Telephone: Telephone: Telecopy: EOTHER Cc. v Subir K.Sanyal,Ph.D, Vice President Reservoir Engineering GeothermEx,Inc. 5221 Central Ave.,Suite 201 Richmond,CA 94804 Telephone: Telecopy: UNAKGEO.DST.08/30/91 patd PROATACAST 702/355-5666 102/355-5656 Richard M.Johannsen 907/279-8561 907/276-3108 415/527-9876 415/527-8164 ni 206/727-4432 (Direct) 206/441-7500 (Main) 206/441-4964 ea pHacumn@ KoaAmAD Kune baad fav eOT reer Ir B reve Alaska Energy Authority[o/Q [i MEMORANDUM To:Distribution From:Dick Emerman raerAlaskaEnergyAuthority( Subject:Unalaska Geothermal --10/24 Meetings with Processors in Seattle I have now scheduled three meetings with seafood processors in Seattle for October 24.In addition to the processors themselves,the following organizations are expected to have representation at these meetings: Alaska Energy Authority Charlie Bussell Brent Petrie City of Unalaska Roe Sturgulewski OESI Power Corporation Dan Schochet John Nuveen &Co. Jim Seagraves R.W.Beck &Associates (representative not yet identified) The meeting schedule on October 24 is as follows: 1)Westward Seafoods /Greg Baker 8:30 -10:00 a.m. Meeting location:|Westward offices 1111 Third Ave.,Suite 2250 Seattle 2)Alyeska Seafoods /Win Brindl 10:30 -noon Meeting location:R.W.Beck offices 2101 Fourth Ave. Seattle 3)UniSea,Inc./Dick Pace **Scheduled UniSea meeting is tentative,will confirm next week ** 2:00 -3:30 p.m. Meeting location:UniSea offices 15400 N.E.90th Redmond Distribution: Alaska Energy Authority Charlie Bussell Brent Petrie City of Unalaska Roe Sturgulewski OESI Power Corporation Dan Schochet John Nuveen &Co. Jim Seagraves R.W.Beck &Associates Win Peterson To:Charlie Bussel]Date:October 30,1991 Executive Director -oY ,From:Dick Emerman wW Subject:Note on OESISeniorrememny I received a cal]today from Ray Benish at R.W.Beck,who felt he shouldsharewithussomeinformationherecentlyheardfromBeck's Denver office regarding OESI.He said he felt obligated to pass these concernsalongtoussinceAEAisBeck's client.He mentioned three things: 1)Soda Lake is an existing geothermal project built by OESI and financed by Prudential Power.Apparently,Prudential now considers OESI to be in default on its loan obligations.R.W. Beck was the consulting engineer hired by Prudential for the project,and Geothermex was the resource consultant that rendered its judgment that the geothermal resource was adequate.AccordingtoBenish,the power plant has been built and numerous wells drilled,but for one reason or another the resource is not proving adequate for the plant requirements.Prudential wants to get out of the project. 2)Apparently,OESI has not paid for R.W.Beck invoices on Soda Lake dating from December of last year.Benish said nothing more aboutit,but wondered if there was a liquidity problem at OESI especially in view of the Soda Lake situation and the possibility that OESI may be trying to buy out Prudential's share.All speculation.However,if there is a liquidity problem,it could affect not only OESI's plans to finance the Unalaska wellfield with OESI equity,but might affect OESI's agreement to compensate AEA for costs we are presently incurring. 3)Our present agreement calls for OESI to provide Beck with engineering drawings and specifications for the proposed Unalaska plant.Evidently,what Beck is actually receiving are faxed drawings one page at a time rather than a complete set of clean documents.Maybe this is adequate and expected,but it might also raise a question about the adequacy of OESI's resources. Benish felt that,while these items may not indicate any significant problem with OESI and their ability to perform,they are the sort of thing we would want to consider and check out as part of a "due diligence"review. I asked him for a name and number at Prudential Power,and he providedthefollowing:Elizabeth Schulz (201)802-4935.He asked that we notmentionR.W.Beck if we choose to call Prudential,because Prudential might not appreciate hearing that Beck had advertised their troubles.I told him that I didn't see why we would have to mention Beck's name,and that Brent Petrie would probably make the call. cc:Brent Petrie wet eer ww bine vu oervuct &@ GUO OCcM oc re)HtH rP.UL PANAFAX TRANSMISSION COVER SHEET PLEASE DELIVER TO:Brent Ve tne. Leus GveenvanW\ TRANSMITTED FROM:JIM SEAGRAVES JoHN Nuveen &Co.INCORPORATED SEATTLE,.WASHINGTON bOb23UsadsNUMBER OF PAGES,INCLUDING COVER SHEET:G 6 Date:Sliola ' TIME: IF FHERE ARE ANY PROBLEMS WITH TRANSMISSION,PLEASECALL:a, } Sanpy at (206)587-0959 WIPISJalass: 'poor F107 boo 20"00 Cheol NUVEEN Oct.4 Oct.17 Nov.1 Nov.21 Dec,10 Dec.18 Jan.8 Jan.2 Jan 28 -31 Feb.26 Mar.18 JURIN WUVEEN &UL DSEH!ILE WwW REA P.@2 John Nuveen &Co.Incorporated 2740 Pacific First Centre Telephone 206.587.0959 Investment Bankers 1420 5th Avenue Seattle,Washington 98101-2383 ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992 Unalaska Geothermal Project Preliminary Financing Schedule September 16,1991 Distribute Draft PSA/Otker Documents BC Mecting -Anchorage AFA/CITY/BC/ -Review Draft PSA UW/UWC/CC/ -Review Project Costs CM =Review Risk Analysis Meeting -Seattle CITY/CO's -Document Drafting -Consulting Engincer's Preliminary Report Meeting -Anchorage/Unalaska CITY/CO's -Document Drafting -Update Meeting Seattle -Sparks CITY/CO's -Document Review +Site Visit Mecting -Anchorage CITY/CO's -Document Review Meeting -Anchorage CITY/CO's -Final Draft PSA Board Approval -Construction Agreement Execute PSA/Construction Agreement Document Review Meeting -Seattle Rating Agency/Bond Insurer Meetings -New York Bond Sale Closing Parties:AEA:Alaska Evergy Authority BC:Wohlforth Argetsinger Johnson &Brecht CITY:City of Unalaska CM:OESI CO's:Companies UW:John Nuveen &Co.Incorporated UWC:Katten Muchin &Zavis cel JUIN WUVCCIN &@ WT ocert!ILO REH OS Se JO ver 15,1991 WEEN &CO.INCORPORATED PAGE 2 ALASKA ENERGY AUTHORITY UNALASKA GEOTHERMAL PROJECT BOND ISSUE SUMMARY CONSTRUCTION COSTS INTEREST OURING CONSTRUCTION CAPITAL RESERVE FUND BOND DISCOUNT &FINANCING COSTS BOND INSURANCE FEE SUBTOTAL REINVESTMENT INCOME TOTAL BONDS ASSUMPTIONS eer INTEREST RATE CATE OF BOND ISSUE INTEREST &FEES CAPITALIZED TO TERM OF AMCRTIZATION BOND INSURANCE FEE REINVESTMENT RATE ISSUANCE COSTS eateeeeee BOND DISCOUNT $967,650 COKSULTING ENGINEER 75,000 GEOTHERMAL ENGINEER 78,000 BOND COUNSEL 120,000 CITY COUNSEC 25,000 BOND RATINGS 30,000 PRINTING 25,000 AEA EXPENSES 50,000 MISCELLANEOUS 20,000 A elena ne Ohh TOTAL $1,387,650 $57,400,000 9,353,950 0 1,387,650 707,609 $68,849,209 (4,339,209) $64,510,000 7.250% 1 APR 92 1 APR 94 25 YEARS 0.500% 6.000% (24 MONTHS) ee See ee eeee JUNIN WUVECIN &UUTOEH!Ihe iu HER P.u4 ewre .----_---ry ---2 . Se er 15,1991 PAGE 2 J0 WEEN &CO.INCORPORATED ALASKA ENERGY AUTHORITY UNALASKA GEQTHERMAL PROJECT YEAR MO CONSTRUCTION FUND CAPITALIZED INTEREST ACCOUNT RESERVE FUND TOTAL FUNDS CONSTRUCTION INTEREST FUNDS INTEREST INTEREST FUNDS INTEREST EXPEND-INTEREST 1ST OF MO)«=CASH FLOW «EARNINGS 1ST OF MO PAYMENTS EARNINGS 1ST OF MO EARNINGS TTURES EARNINGS 1992 APR $53,071,695 $861,000 $265,358 $9,353,950 $46,770 $0 $0 $861,000 $312,128 MAY 52,522,823 861,000 262.614 9,383,950 ,46,770 0 0 861,000 309,384 JUN 51,971,207 861,000 259,856 9,353,950 46,770 0 a 861,000 306,626 JUL 51,416,633 2,009,000 257,084 9,353,950 46,770 0 0 2,009,000 303,854 AUG 49,711,687 2,008,000 248,558 9,353,950 46,770 0 Q 2,009,000 295,328 SEP 47,998,015 2,009,000 239,999 9,353,950 46,770 0 0 2,009,000 286,760 OCT 46,275,775 1,722,000 231,379 7,035,463 2,338,488 35,077 0 0 4,060,488 266,456 ROV 44,820,231 1,722,000 224,101 7,015,463 $5,077 0 0 1,722,000 259,178 DEC 43,357,408 1,722,000 216,787 7,015,463 35,077 0 0 1,722,000 251,864 1993 JAN 41,887,274 2,870,000 209,436 7,015,483 35,077 0 0 2,870,000 244,514 FEB 39,261,787 2,870,000 196,309 7,015,483 35,077 0 8)2,870,000 231,386 "YR 36,623,174 4,305,000 183,116 7,015,453 35,077 0 0 4,305,000 218,193 R 32,536,367 4,308,000 162,682 4,676,975 2,338,488 23,385 0 0 6,643,488 186,067 MAY 28,417,434 4,305,000 142,087 4,676,975 23,385 0 0 4,308,000 165,472 JUN 24,277,906 4,305,000 121,390 4,676,975 23,385 0 0 4,305,000 144,774 OUL 20,117,680 3,444,000 100,588 4,676,975 23,385 )fe)3,444,000 123,973 AUG 16,797,653 3,444,009 83,988 4,678,975 23,385 0 0 3,444,000 107,373 SEP 13,481,027 3,444,000 67,305 4,676,975 23,385 0 0 3,444,000 90,690 OCT 10,107,717 2,009,060 50,539 2,336,488 2,338,488 11,682 Q 0 4,347,488 62,232 NOV 8,160,948 2,009,000 40,805 2,338,488 11,692 0 )2,009,000 §2.497 DEC «66,204,448 2,609,050 34,022 2,338,488 11,892 0 0 2,009,006 42,715 1994 JAN 4,238,159 1,435,000 21,181 2,338,488 11,692 +)0 1,435,000 32,883 FEB 2,836,043 1,435,000 14,180 2,338,488 11,692 9]0 1,435,000 25,873 MAR «1,426,915 1,435,000 7,135 2,338,488 11,692 0 0 1,435,000 18,827 APR 10,742 0 54 0 2,338,488 0 0 0 2,338,488 54 MAY 10,796 0 54 0 0 0 )0 54 JUN 10,850 *]54 0 0 0 0 0 54 suemenmerew weer -e-----weneweeseese seezeuseaves <<-on TOTALS $57,400,000 $3,637,663 $3,353,950 $701,546 $0 $66,753,950 $4,339,209 ao oe Se Uru yw VU NW &VU Ort Ic iw HtcH r.W> esptember 15,1991 PASE 3 JOHN NUVEEN &CO.INCORPORATED ALASKA ENERGY AUTHORITY UNALASKA GEOTHERMAL PROJECT Armual Project Costs ($000) Years Ending December 31 1994 1995 1996 1997 1998 1999 2000 2001 2002 OPERATING EXPENSES Operations &Kaintenance 4.50%$1.700 $1,777 $1,856 $1,940 $2,027 $2,119 $2,214 $2,313 $2,418 General and Administrative 4.50%135 141 167 154 1@2 168 176 184 192 Insurance 4.50%92 $6 100 105 110 115 120 125 132 Fluid Fee 2,558 3,559 3,504 3,682 3,640 3,834 3,787 4.598 5.127 Total Operating Expenses $4,485 $5,145 $5,289 $5,497 $5,713 $5,938 $6,173 $8,286 $10,362 DEBT SERVICE Principal $0 $984 «$1,055 $1,132 $1.214 $1,302 $1,396 $1,497 $1,606 Interest 3,508 4,677 4,608 4,529 4,447 4,359 4,265 4,163 4,055 Total Debt Service $3,508 $5,651 $5,661 $5,661 $5,661 $5,661 $5,661 $5,661 $5,662 RENEWALS &REPLACEMENTS $15 347 333 422 TOTAL PROJECT COSTS $7,992 $11,121 $10,950 $11,505 $12,374 $11,982 $11,834 $14,369 $16,023 NET POWER SALES (kwh)66,226 88,302 88,301 88,301 88,301 688,301 88,301 88,301 88,301 UNIT COST OF POWER (¢/kwh)12.07 12.59 12.40 13.03 12.88 13.57 13.40 16.27 18.15 UNIT COST OF POWER (1994 Dollars)@ 4.50%12.07 12.05 11.36 11.42 10.80 10.89 10.29 11.96 12.76 Fluid Fee Percentage 32.0%$2,9%32.0%32.0%32.0%32.0%32.0%32.0%32.0% ever 40-L77i AYP OD Pru JURN NUVEEIN &LUC DOH!Ii WwW HEH F.W6 tember 15,1991 PAGE 4 JOHN NUVEEN &CO.INCORPORATED ALASKA ENERGY AUTHORITY UNALASKA GEOTHERMAL PROJECT Annual Project Costs ($000) Years Ending December 31 2003 2008 2008 2006 2007 2008 2099 2010 2011 OPERATING EXPENSES Operations &Maintenance 4.50%$2,526 $2,660 $2,755 $2,883 $3,013 $3,148 $3,290 $3,438 $3,593 General and Administrative 4.50%201 210 215 229 233 250 261 273 285 insurance 4.50%137 143 149 156 163 170 178 186 194 Fluid Fee 6,962 7,433 8,238 8,624 9,418 9,717 10,866 10,901 11,576 Total Operating Expenses $12,198 $13,899 $15,505 $17,034 $18.557 $19,911 $21,520 $23,027 $24,115 CEBT SERVICE Principal $1,722 $1,847 $1,981 $2,125 $2,279 $2,444 $2,621 $2,811 $3,015 Interest 3,938 3,814 3.680 3,536 3,382 3,217 3,040 2,850 2,646 Total Debt Service $5,651 $5,661 $5,651 $5,661 $5,661 $5,661 $5,661 $5,661 $5,861 RENEWALS &REPLACEMENTS 465 513 566 624 688 TOTAL PROJECT COSTS $18,321 $19,560 $21,679 $22,695 $24,784 $25,572 $27,805 $28,688 $30,464 RET POWER SALES {kwh)88,301.88,201 88,361 $8,301 88,301 88,301 88,301 88,301 88,301 UNIT COST OF POWER (¢/kwh)20.75 22.15 24.55 25.79 28,07 28.96 32,49 32.49 34,50 UNIT COST OF POWER (1994 Collars)@ 4.50%13.96 44.26 15.13 15.16 15.84 18.64 16.27 16.06 16.32 Fiuid Fee Percentage 38.0%38.0%38.0%38.0%38.0%38.0%38.0%38.0%38.0% ew aum-azzk.awe ocRurt JUMN INUVEEN &LUCDEHI ILE 1uU REA P.a? --ptember 15,1991 PAGE 5§ JOHN NUVEEN &CQ.INCORPORATED ALASKA ENERGY AUTHORITY UNALASKA GEOTHERMAL PROJECT Annual Project Costs ($000) Years Ending December 3) 2012 2013 2014 2015 2016 2017 2018 2019 2020 OPERATING EXPENSES Operations &Maintenance 4.50%$3,754 $3,923 $4,100 $4,284 $4,477 $4,679 $4,889 $5,109 $5,339 General and Administrative 4.50%298 312 326 340 356 372 388 406 424 Insurance 4.50%203 212 222 232 242 253 265 276 289 Fluid Fee 12,749 13,621 13,295 13,654 13,295 13,692 13,295 13,732 10,861 Total Operating Expenses $25,257 $25,257 $25,257 $25,257 $25,257 $25,257 $28,257 $25,257 $25,257 DEBT SERVICE Principal $3,234 $3,488 $3,720 $3,989 $4.279 $4,589 $4,921 $5,278 ($0) Interest 2,427 2,193 1,941 1,672 1,382 1,072 739 $83 1°) Total Debt Service $5,661 $5,661 $5,661 $5,661 $5,661 $5,661 $5,662 $5,661 $0 RENEWALS &REPLACEMENTS 788 835 921 1,016 TOTAL PROSECT COSTS $30,918 $31,676 $30,918 $31,754 $30,918 $31,839 $30,918 $31,934 $25,257 NET POWER SALES (kwh)88,301 88,30]88,301 88,301 88,301 88,301 68,301 88,301 88,301 UNIT COST OF POWER (¢/kwh)35.01 35.87 35,01 38.96 3§.0)36.06 35.02 38.18 28,60 UNIT COST OF POWER (1994 Collars)@ 4.50%158.85 15.54 14.52 14.27 13.23 13.10 12.17 12.03 9.11 Fluid Fee Percentage 38.0%43.0%43.0%43.0%43.0%43.0%43.0%43.0%43.0% TOTAL P.Q7 Date:10-11-91 9:54am From:TGanthner:Anch:AEA To:remerman,bpetrie cc:terrig Subj:Trips to Seattle-Unalaska Reservations have been made for Seattle for October 23 as follows: October 23: Depart Anchorage 1:20 p.m.10/23 AK 82 Arrive Seattle 5:30 p.m. Overnight Ramada Inn 7200 =/fL44 Aarne October 24 206-Ud l-7783S Depart Seattle 5:05 p.m.10/24 AK 87 Arrive Anchorage 7:40 p.m. For November 3: Depart Anchorage 1:20 p.m.AK 82 Arrive Seattle 5:30 p.m. Overnight Warwick November 4 Depart Seattle 5:05 p.m. Arrive Anchorage 7:40 p.m. Terri Date:10-11-91 9:54am From:TGanthner:Anch:AEA To:remerman,bpetrie ce:terrig Subj:Trips to Seattle-Unalaska Reservations have been made for Seattle for October 23 as follows: October 23: Depart Anchorage 1:20 p.m.10/23 AK 82 Arrive Seattle 5:30 p.m. Overnight Ramada Inn October 24 Depart Seattle 5:05 p.m.10/24 AK 87 Arrive Anchorage 7:40 p.m. For November 3: Depart Anchorage 1:20 p.m.AK 82 Arrive Seattle 5:30 p.m. Overnight Warwick November 4 Depart Seattle 5:05 p.m. Arrive Anchorage 7:40 p.m. Terri Date:10-8-91 3:38pm From:DDenigChakroff:Anch:AEA To:CharlieB cc:DickE,Brent,TerriG Subj:Unalaska Geothermal I spoke with Tom Crandall of the Ounalashka (Village)Corporation today (Kathy Grimnes is out of town)regarding the September 30 letter you sent.He did not have any particular questions,but had not yet discussed right-of-way issues internally and was,therefore,not ready to discuss those issues with us.He said he would address this and give us a call when he is ready to discuss it.I will follow-up in another week if I don't hear from him to see where they are with it. Tom did agree to grant permission for survey work that will begin next week by Dames &Moore under contract to OESI.He will address that letter to you and FAX it to us.When it comes in,Terri,let me know and I will make sure OESI and Dames &Moore get copies. For your information,the blood bank called and they need my blood today before 4 p.m.,so I will be leaving about 3:45 today. ORIVE VETASGIVA IIEeuUysl vet tiv tw O91 F Mt iurm F PUSSY AY ISIE MV EEIVINA ot ESTPwoBe Corporation FACSIMILE COVER PAGE SENT TO:De pera "Err sre yz dure Rory MESSAGE #: CHARS "Bus ie :ATTENTION: Swsur "psrRie FAX NUMBER:($0 FS sb y 8ose FROM:DAN Screeceust DATE:Oe.t®,199). FILE NUMBER:ce: NUMBER OF PAGES (INCLUDING COVER SHEET):___-= IP YOU HAVE DIFFICULTY RECEIVING THIS FAX,PLEASE CALL (702)355-5666 AND ASK FOR: Awa ca AO (%A Feta D pews 2S i'PeePF easrd WZ,WIanser-7 Q@sxPo ae.>C=allco_5610 East Glendale Avenue +Sparks,Nevada 89431 «(702)355-5666 Facsintile (702)355-5656 STATUS REPORT UNALASKA GEOTHERMAL PROJECT (VeUNVOtéev™AN GEN AVINVNSIYe The following is a list of the major items pertaining to the development of the Unalaska Geothermal Project, along with the current status of activities.The intent is to update this status report on a bi-weekly basis 80 as tokeepallpartiesabreastoftheProjectstatus. ya :Se SATUS fo ELION:: Letter Agreement between ABA and OESI Signed on September 27,1991 _ ° Consultants review of Project design and R.W.Beck retained by AEA.03/08/92 economics by R.W.Beck Kickoff meeting held on October Final Crqned 4,1991 Consultants review of geothermal resource GeothermEx,Inc.retained by 03/08/92 development and capability AEA.Kickoff meeting held on Final S iqnued October 4,1991 Preliminary review by R.W.Beck and "Fatal Flaw"analysis of project 12/27/91 GeothermEx elements Review and finalize Power Sales Agreement Second draft circulated for review 01/08/92 between AEA and City of Unalaska on 10/24/91 Execute Obtain permits and agency approvals Dames &Moore retained by OESI 11/15/91 on 10/11/91.On-site survey in Apply for permits progress -03/08/92 approval Obtain rights-of-way for roads,transmission AEA notified Ounalashka 12/27/91 lines and dock facility.Corporation of intent to obtain rights-of-way on 09/30/91 OESI notified Aleut Corporation of incidental subsurface usage, relative to road and transmission line construction,on 10/17/91 Detailed Development Plan for power plant OESI technical team made on-site 12/06/91 and field surveys on 09/14/91 and Final 10/17/91.Peratovich,Nottingham &Drag performing on-site reconnaissance on 10/17/91. 37531M October 18,1991 sm oP *WwavuVvGUlaev”AN BIEN!AVINVNZ Lt ITEM:'eee ides $eee aie e Ee Fa ae ie Senne ainet ch ats Re OESI/AEA Contract Documents OESI to provide drafts by 01/15/92 *Construction Agreement 10/30/91 for initial review by Execute *Operations &Maintenance Agreement 11/08/91.WAh5"/a i e Fluid Sales Agreement Bond Documents Bond documents to be prepared by 01/22/92 Bond Counsel for review by Final 11/08/91 Debt Service Reserve loan by State of Alaska |AEA to follow up with Revenue 01/10/92 Commissioner or AIDA during the |Final Commitment week of 11/10/91. Rating Agency -Bond Insurer meetings To be scheduled by Nuveen/AEA 01/31/92 Bond Sale Based on placement of bond 03/13/92 insurance, Closing Following sale of bonds.03/31/92 Issue purchase orders for long lead items and |OESI to release contracts after 04/03/92 contracts for detailed ongineering,first phase |closing based on preliminaryconstructionanddrilling.engineering and design and other activities performed prior to closing. First Phase Construction -roads,dock and Projected based on financing.05/01/92 support camp.Begin Begin drilling activities Projected based on financing.06/01/92 Finalize Resource Development Plans Based on review of drilling and 11/15/92 testing during June through October 1992, Second Phase Construction Full release of power plant and 04/01/93 transmission line construction.Begin Completion of Construction Including plant Start-up.-09/01/93 Complete Acceptance and Commissioning Plant into Commercial Operation.10/30/93 37531M October 18,1991 Brert Alaska Energy Authority MEMORANDUM October 9,1991 To:Distribution a aOw From:Dick Emerman NNAlaskaEnergyAuthority{, Subject:Unalaska Geothermal --Confirmation of 10/24 Meetings with Processors in Seattle This is to confirm the times and locations of meetings scheduled with processors in Seattle on October 24.My present understanding is that,in addition to the processors themselves,the following organizations will participate: Alaska Energy Authority Charlie Bussell Brent Petrie City of Unalaska Polly Prchal Roe Sturgulewski Bob Hicks OESI Power Corporation Dan Schochet John Nuveen &Co. Jim Seagraves R.W.Beck &Associates (representative not yet identified) The meeting schedule on October 24 is as follows: 1)Westward Seafoods /Greg Baker 8:30 -10:00 a.m. Meeting location:|Westward offices 1111 Third Ave.,Suite 2250 Seattle 2) 3) Alyeska Seafoods /Win Brindl 10:30 -noon Meeting location:R.W.Beck offices 2101 Fourth Ave. Seattle UniSea,Inc./Dick Pace 2:00 -3:30 p.m. Meeting location:R.W.Beck offices 2101 Fourth Ave. Seattle Distribution: Alaska Energy Authority Charlie Bussell Brent Petrie City of Unalaska Polly Prchal Roe Sturgulewski Bob Hicks OESI Power Corporation Dan Schochet John Nuveen &Co. Jim Seagraves R.W.Beck &Associates Win Peterson Vit!WITAGIVA TGIGeYVyae!F¥Gt FIVoIUTs!FISTAM 8 499091297 AN CNET AUINURLIY#1 Power Corporation Teme Ne mem nnee onto ee ampere cee meme oe oe -_.- FACSIMILE COVER PAGE he SENT TO:ret MESSAGE #: ATTENTION:\>ot Bare an -FAX NUMBER: FROM:DAW "ae orto yA DATE:(2-10 41 FILE NUMBER:ce: NUMBER OF PAGES (INCLUDING COVER SHEET):7 IF YOU HAVE DIFFICULTY RECEIVING THIS FAX,PLEASE CALL (702)355-5666 AND ASK FOR: - 610 East Glendale Avenue -Sparks,Nevada 89431 ©(702)355-5666 Facsimile (702)355-5656 1Veo9091297 AK ENENUY AVIMURLIYI#2wmttsWTAEVAPEOpas!fet FIVOIUTGI PLEtSeam 8 MEMORANDUM TO:Distribution FM:Dan Schochet QR DT: Odstober 16,1991 RE;Draft Power Sales Agreement Between City and Industrial Customer OOOESRS ETE EOETHHEEE EGET OEESESEEG KEES EESEDS EEE FOHUEREEEEER ERECT TER GERAD ODES EREECEER SED The draft of October 15,1991 does not address the issue of buyback of excess power from the users, I think we should ask the users themselves for recommendations at this time. I think it would make sense to send the draft agreements with a cover letter along the lines of the suggested draft attached hereto, I will call Dick Emmerman later today for comments, DNS:nrk 39309 Attachment PS. Pide - Atta Sell)\s WY Comey ot vs aX Do cows,ashe4ae«le "epeck and GN co Ry oS Paya Scladule, Q 4 e, CAn, wlth WITAGIVA EGIGUYNSG!FUEI PIVTIOTO!ells ZOAM » e TO:Distribution October 16,1991 Page 2 DISTRIBUTION: Via Facsimile 1.Alaska Energy Authority Charles Bussell,Executive Director Dick Emmerman,Senior Economist Fax No.(907)561-8584 2.City of Unalaska Polly Prchal,City Manager Ros Sturgulewski,Director of Public Works Fax No.(907)581-1417 3.Counsel for AEA Erik Wohiforth,Esq. Fax No.(907)276-5093 4.John Nuveen &Co, James F,Seagraves,Vice President Fax No.(206)382-1589 TUZI2OYTZ9%AK ENERGY AUTHORITY:3 wilt)WITTEVA FOTOoO!ofT FP IVOIVOO!PILI SuaAm of MVZOVVTIICI™AN ENENUT AUIMUNLIY&& COVER LETTER OF TRANSMITTAL OF DRAFT PSA TO UNALASKA PROCESSORS October 16,1991 Dear : The Alaska Energy Authority has entered into a Letter of Commitment to use its best efforts to complete a geothermal electric generation project to serve Unalaska.We believe that this addition to Alaska's infrastructure will provide high quality,reasonably priced power to the important industry segment at Unalaska,over the long term.We also believe that completion and operation of the Project may enhance your business opportunities and your competitive position in the area, Your consideration of participation as a contract purchaser of power from the City of Unalaska is important if we are to succeed in the financing and construction of the Makushin Geothermal Project. The geothermally generated power plant will be owned by the Authority and the geothermal power is to be sold to the City,which will supply power to the industrial users.We have prepared the attached Draft Power Sales Agreement between industrial entities and the City of Unalaska,and would appreciate your Tecammendations regarding how the contractual arrangements may be further structured to best meet your needs,as well as thoss of the City and the Authority. Our objectives include providing you and other Unalaska industrial power users with a number of advantages over the long term.These advantages include: 1.Long-term protection of users of electrical energy at Unalaska from the increases in fuel costs that will inevitably occur in the future.The cost of power from the project should increase only by inflation of that fraction of the total costs that relate to operation,The fuel for this power generation does not increase in cost as a function of the world price of oil. 2.Long-term protection of energy users from the Increase in cost of generation that is occurring due to costly increases in requirements for emission control equipment for diesel generation,These requirements may very likely be retroactively enforced.Recent experience,wherein the cost of a new generation unit was more than doubled by the addition of necessary emission control gear, causes great concern regarding this factor's effect on the future costs of self-generated power at Unalaska and elsewhere. 3.The provision to Unalaska's industrial power users of the important and valuable opportunity to become connected to an island-wide power grid.The establishment of such a grid should provide DENI DT*AGFOX LeieCOPLer FST FIUTIOTYT F115 Z29AM 5 70235691259 AK ENERGY AUTHORITY;#5 October 16,1991 Page 2 maximum possible assurance against loss of generation during times when such loss would be extremely costly to a processor.In addition,this grid may allow you to achieve significantly longer useful lives from your generation equipment than would be possible if they continue to operate totally isolated. 4,The creation for participating industrial users of opportunities to market surplus power into the total Unalaska electrical system,and thereby further contribute to the potential minimization of your total cost of power. 5.Allowing your firm 2 primary right to the potential advantages of lower-cost power capacity over the long term,in exchange for your participation at this time,The Intent of the draft agreementisforpurchasersatthistimetocontinuetohaveafirstrighttoavailableindustrialgeothermalpowerifthetotalloadatUnalaskagrowsbeyonditspresentsize.This right to capacity may constitute an asset that could appreciate in value over the years. A$you may already know,the Authority's charter is to,"promote,develop and advance the generalprosperityandeconomicwelfareofthepeopleofAlaskabyprovidingameansofconstructing,acquiring,financing,and operating power projects and facilities that recover and use waste energy."We have agreatopportunitytofurthertheprosperityofUnalaskathroughtheMakushingeothermalproject,andwouldverymuchappreciateyourecommendationsastohowtheenclosedDraftPowerSalesAgreementmaybemodified60astoassistinmeetingtheobjectivesofyourcompanyoverthelongtermaswellas the Authority and the City of Unalaska. Sincerely, 37524M eS(Last *ARS i.FeesLanes Gy!'J,Gxteorwt Faac Ravens.RQepusuc |CAzoTHMe ai -Merca 85 De Vacuum acy Eavionmouran Aadiases,Aca PTA.-DecriaBez GSE BZ FeO eeery STVRY Fae Reperr Verd,Dancy A porRz -leas Wed 4A.Foieom Finan "Repeat,Fewon.Ghamarms tac.-Pec 192anee) -.FR .<4<eIocr AwAS asus.O=S,"Powse,GCozv.Ave iy &.lise SunAZimag *PA ay TION,oes Peno -Sopt Atay 2.Acw Comm UTTAR Oat Lee Sse OT ay.+ 2 Sma ks -or =7 er SfenyaSENSCeol INO”Ger.991 ALIMOHLMYADYSNSMY#GZLagsezns.maraewNdavela17ntsatdannaralLReQlol4WWAZ:LLS9# WINE WIPAGE VA FOFECUPLG!FULE FIUTIOTOE Fie SlAM +TUZS30¥1299 AK ENERGY AUTHORITY:7 \ SUMMARY AND STATUS OF ENVIRONMENTAL PERMITS AND OTHER APPROVALS UNALASKA GEOTHERMAL PROJECT The following table gives the status of the varous permits and other approvals that must be obtained to construct and operate the Unalaska Geothermal Project utilization facility and to drill andoperatethepraject's geothermal wells. 1,Alaska Depactment of Governmental Coordination (DGC) Coastal Consistency Agency contacted.Permit |12/91 4/92 Determination assessment being assembled.5%complete. 2.US Army Corp of Engineers (COE) Section 404 Permit Wetlands delineation 12/92 4/92 survey scheduled to begin 10/13/91.10%complete. Environmental May be required as part 42/91 4/92 Assessment of Section 404 &Section 10 permitting process Section 10 Permit 0%complete.Need dock |12/91 4/92 and shore facilities description 3.Alaska Department of Fish and Game (DF&G) Anadromous Fish Survey scheduled to begin |12/91 4/92 Stream Crossing Permit |10/13/91.10%complete. 4,US Fish and Wildlife Service (USFWS) Section 7 Consultation 2/92 4/92 5.US Coast Guard (USCG) Aid Navigation 1/92 3/92 Fuel Transfer 10280-2R October 15,1991 DENI DIeAGFOX IBIGCUPLELr (VET . +tf ) PiVT1OTU!FTI STAM +TUZID09TZ9%AK ENERGY AUTHORITY:#6 6.Alaska Department of Environmental Conservation (DEC) Air Quality Control Solid Waste Disposal Sewage Treatment System Waste Water Disposal Certificate of Reasonable Ingurance 3/72 eu |3792 4/92 3/92 3/92 7,Alaska Department of Natural Resources (NR) Water Rights Geothermal!Production Well Permits Geothermal Injection Well Permits Tidelaads Lease 3/92 2/92 2/92 4/92 8.Environmental Protection Agency (EPA) Underground Injectian Controt Inventory EPA Contacted. Inventory forms being obtained 4/92 - bend Alaska Energy Authority MEMORANDUM October 7,1991 To:File (awFrom:Richard Emerman 'e U Subject:Out-of-State trip report The purpose of the trip was to represent the Authority at a meeting regarding the Unalaska Geothermal Project at the offices of R.W.Beck in Seattle.Trip schedule: Left Anchorage 10/4 8:00 a.m. Arrived at meeting in Seattle 10/4 at 1:00 p.m. Meeting 10/4 between 1:00 p.m.and 5:00 p.m. Left Seattle 10/4 at 6:55 p.m. Arrived back in Anchorage 10/4 at 9:30 p.m. Attending the meeting were representatives from OESI,R.W.Beck, Geothermex Inc.,and (by teleconference)the City of Unalaska.General agreement was reached among the parties on the scope and schedule for the Consulting Engineer's contract between the Authority and R.W.Beck. AEA and Beck will endeavor to complete contract execution the week of October 7. Also agreed that OESI will prepare a detailed project development schedule (including target dates for contract negotiation/execution, completion of consulting reports,permitting,and other key elements) for circulation in draft the week of October 7.This will be provided to the Unalaska City Council after review of draft schedule,and will be updated every two weeks.The idea is to begin to keep all parties, including the City Council,informed of project progress.Contracts include: 1)power sales agreement /AEA and the City 2)power sales agreements /City and processors 3)fluid sales agreement /AEA and OESI 4)construction contract /AEA and OESI 5)O&M agreement /AEA and OESI 6)possible --interconnection agreement /City and processors Also noted that,given shake-up at the Alaska Dept.of Revenue,this might not be a propitious time to ask for $11 million loan to establish capital reserve fund. A teleconference is scheduled for 1:30 p.m.October 11 to go over draft power sales agreement between City and processors (AEA to attend at Wohlforth's office).Meetings in Seattle with the processors are scheduled for October 24.A full meeting of the "finance team" (membership not entirely clear)is scheduled for November 4 in Seattle, expected to run all day.Brent needs to go over the budget upon his return to determine how much we can afford to pay for City of Unalaska travel for these types of meetings.At present,they intend to send several representatives and we will pick up the tab from the OESI "letter of commitment"money. Beck (Win Peterson)noted that AEA will-need some advice in negotiating the construction agreement with OESI,and asked if we had in-house expertise.I said I doubted we had the available engineering staff resources and information in-house to do a careful job of it.Peterson then said that Beck could serve in that role (i.e.advise AEA in construction contract negotiations with OESI).OESI was much in favor of this,and argued that getting another engineering firm involved would be confusing and time-consuming.I just said that there was a web of relationships here and that we would have to think about it.Basically, I'm not sure of Beck's allegiance in this. Two other miscellaneous items: 1)Our statutes require a feasibility study and plan of finance if the project "requires an appropriation from the state general fund"or "a pledge of the credit of the state."Still need clarification from Wohlforth whether: a)a loan from the Department of Revenue to set up a capital reserve fund; b)prior expenditure of $5 million in State funds; c)a general fund "loan"from the legislature (presumably an appropriation) 2) triggers this requirement.If so,Beck should be notified as soon as possible so that their report can be structured to cover the feasibility statute requirements as much as possible. It was noted that Tom Arminski is thought to be looking into right-of-way owners other than the Ounalashka Corporation.Need to follow up. Tat yee towPANAFAXTRANSMISSION- COVER SHEET a C2"25 P2125 PLEASE DELIVER TO: ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992(UNALASKA GEOTHERMAL PROJECT) FINANCING TEAM _fharlie Bussell,Alaska Energy Authority (907/561-8584)Brent Petrie,Alaska Energy Authority (907/561-8584) Dick Emerman,Alaska Energy Authority (907/561-8584) Polly Prchal,City of Unalaska (907/581-1417) Roe Sturgulewski,City of Unalaska (907/581-1417) Eric Wohlforth,Wohlforth Argetsinger Johnson &Brecht (907/276-5093) Lew Greenbaum,Katten Muchin &Zavis (312/382-1589) Daniel Schochet,OESI Power Corporation (702/355-5656) Cliff Philips,OESI Power Corporation (702/355-5656) TRANSMITTED FROM:JIM SEAGRAVES JOHN NuVEEN &Co.INCORPORATED SEATTLE,WASHINGTON NUMBER OF PAGES,INCLUDING COVER SHEET:2 Date:_9/25/91 IF THERE ARE ANY PROBLEMS WITH TRANSMISSION,PLEASE CALL: Sandy AT (206)587-0959 JfSebAIP HEH rP.ue oe at oe a rN wu vey &CUTOoM!Lo tuwhta -John Nuveen &Co.Incorporated ==.2740 Pacific Fired Centre Telephone 206.587.0959NUVEENInvestmentBankers14205thAvenue .Scatlle,Washington 98101-2333 +'*September.25,1991 MEMORANDUM VIA FAX TO:Unalaska Geothermal Project Financing Team FROM:James F.Seagraves |(6RE:Finance Team Meeting I have put together the following suggested agenda for our meeting scheduled for 8:30 a.m.tomorrow morning at Eric Wohlforth's office: AGENDA L General Overview of the Project -Brent Petrie AEA Ownership/Operation OESI Construction/Ficld Development AEA City Agreement/City-Industrial Customer Contracts AEA Financing/State Moral Obligation IL Description of Draft Power Sales Agreement -Eric Wohiforth °Relationship of Agreement to Boud Security °Specific Terms of Proposed Agreement .Outline of Related Documents I.Proposed Schedule -Brent Petrie °Hiring of Consulting and Geothermal Engineers °Task Assignments of Consulting Engineer «Load Study -Historical Data -Projected Operating Results -Rate Sensitivity Analysis Drafts of Industrial Customer Contracts Negotiations with Industrial Customers Engincering/Environmental Work Other Ongoing Efforts TV.Questions/Comments If you have comments this afternoon,please give me a call,otherwise Pll see youtomorrowmorning. JPS/sd/UNAK926.SCH -cep-g3-1991 15:03 FROM JORN NWWEEN &CO-SEATTLE C0 AEA P.O” PANAFAX TRANSMISSION COVER SHEET PLEASE DELIVER TO: ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992(UNALASKA GEOTHERMAL PROJECT) FINANCING TEAM Charlie Bussell,Alaska Energy Authority (907/561-8584) Brent Petrie,Alaska Energy Authority (907/561-8584) Dick Emerman,Alaska Energy Authority (907/561-8584) Polly Prchal,City of Unalaska (907/581-1417)Roe Sturgulewsid,City of Unalaska (907/581-1417)Eric Wohlforth,Wohlforth Argetsinger Johnson &Brecht (907/276-5093)Lew Greenbaum,Katten Muchin &Zavis (907/382-1589) Daniel Schochet,OESI Power Corporation (702/355-5656) Cliff Philips,OESI Power Corporation (702/355-5656) TRANSMITTED FROM:JIM SEAGRAVES JOHN NUVEEN &Co.INCORPORATED SEATTLE,WASHINGTON SqNUMBEROFPAGES,INCLUDING COVER SHEET:wa Date:[5 a) IF THERE ARE ANY PROBLEMS WITH TRANSMISSION,PLEASE CALL: SANDY AT (206)587-0959 J5)/&/L CEp-93-199:15:04 FROM JOHN NUVEEN &CO-SEATTLE TO AER F.28 Ab ASM STE We Wy,AU YU ae 20469 PUVA Fist VCIUTe AeIEPNONe Bu.WaywweuUuvEENInvestmentBankers14205thAvenuebdSeattle,Washington 98101-2333 September 3,1991 MEMORANDUM TO:Distribution ListFROM:Jim Seagraves j i? RE:Alaska Energy Authority Power Revenue Bonds,Series 1992(Unalaska Geothermal Project) Because of a scheduling conflict for the Authority,our meeting next week must be changed to Friday,September 13th.It will still start at 10:00 a.m.in Eric's office. If you have any questions,please let me know. JFS/sd UNAKNS IFS .Ser-US-19512 15°64 FRU JOHN NUVEEN &CO-SEQSTTLE Ta ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992 (Unalaska Geothermal Project) Wo ENERGY A 0 INTISINCharlie Bussell Executive Director Brent Petrie Director of Agency Operations Dick Emerman Alaska Energy Authority P.O.Box 190869 701 E.Tudor Road Anchorage,AK 99519-0869 Telephone: Telephone: Telephone: Telecopy: 907/261-7262 907/261-7270 (Brent) 907/261-7253 (Dick) 907/561-8584 SUEY OFUNALASKA ¥Polly Prchal City Manager Roe Sturgulewski Director of Public Works City of Unalaska P.O.Box &9 Unalaska,AK 99685 Telephone: Telecopy: B A 907/581-1251 907/581-1417 SE Eric Woblforth Wohlforth Argetsinger Johnson &Brecht 9 W.Sth Avenue,Suite 600 Anchorage,AK 99501 Telephone: Telecopy: 907/276-6401 907/276-5093 UNAKGEO.DST.06/30/91 stribution List. UNDERWRITER 4 -_.._-s-Jamess F.Seagraves Vice President John Nuveen &Co.Incorporated 2740 Pacific First Centre 1420 Fifth Avenue Seattle,WA 98101-2333 Telephone: Telecopy: 206/587-0959 206/382-1589 UNDERWRITER'S COUNSEL v Lew Greenbaum Katten Muchin &Zavis 525 W.Monroe Street,Suite 1600 Chicago,TL 60606-3693 Telephone: Telecopy: 312/902-5418 312/902-1061 PROJECT ENGINEERvDanielN.Schochet Vice President -MarketingvCliffPhilips Director of Finance OESI Power Corporation 610 East Glendale Sparks,NV 98431 Telephone: Telecopy.: 702/355-5665 202/355-5656 CON G_ENGINEER. REA P.@9 "TOTAL P.89 PANAFAX TRANSMISSION COVER SHEET - PLEASE DELIVER TO: ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992 (UNALASKA GEOTHERMAL PROJECT) FINANCING TEAM Charlie Bussell,Alaska Energy Authority (907/561-8584) Brent Petrie,Alaska Energy Authority (907/561-8584) Dick Emerman,Alaska Energy Authority (907/561-8584) Polly Prehal,City of Unalaska (907/581-1417) Roe Sturgulewski,City of Unalaska (907/581-1417) Eric Wohiforth,Wohiforth Argetsinger Johnson &Brecht (907/276-5093) Lew Greenbaum,Katten Muchin &Zavis (907/382-1S89) Daniel Schochet,OESI Power Corporation (702/355-5656) Cliff Philips,OESI Power Corporation (702/355-5656) TRANSMITTED FROM:JIM SEAGRAVES JOHN NuVEEN &Co.INCORPORATED SEATTLE,WASHINGTON NUMBER OF PAGES,INCLUDING COVER SHEET: DATE: IF THERE ARE ANY PROBLEMS WITH TRANSMISSION,PLEASE CALL: Sandy AT (206)587-0959 )2/0%13 serve TU!URW NUUEEN &CUCocH!Le Ww REAR P.@2 John Nuveen &Co.Incorporated 2740 Paciilc Firs:Centre Telephone 206.597.09594 NUVEEN Investment Bankers 1420 Sth Avenuc Seattle.Washington 98101-2333 meu wT August 30,1991 MEMORANDUM (VIA FAX) TO:Distribution ListFROM:James F.Seagraves |1G RE:Alaska Energy Authority Power Revenue Bonds,Series 1992 (Unalaska Geothermal Project) Following our discussions in Unalaska on Tuesday,we have requested that Bond Counsel revise and distribute proposed drafts of a power sales agreement between the Authority and the City and a form of agreement between the City and its major industrial customers.These documents should be available mid to late next week for our review prior to a meeting scheduled for Wednesday,September 11th at 10:00 a.m.in Eric Wobhlforth's office. The primary purpose of that meeting will be to reach an understanding on the main contractual obligations of the parties and the mechanics of power sales and delivery and of power costs and payments.Assuming general agreement can be reached,the draft agreements will be revised and distributed to all parties including one or more representatives of the industrial customers.A meeting with all parties to review those draft is tentatively scheduled for September 23rd in Seattle. Bond Counsel is currently drafting a letter agreement between the Authority and OESI to arrange for funding of consulting engineer,legal,travel and related costs by OESI through the Authority so that negotiations can begin.That agreement is essential before any real progress can be made on the Project.In particular,a consulting engineer that is fully qualified to evaluate the project,and the City's loads must be on-board as soon as possible --preferably by the September 11th meeting. JFS/sd UNAKMEMLJIPS ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992 (Unalaska Geothermal Project) Working Group Distribution List KA UTHORITY XX -Charlie Bussell Executive Director Xs Brent Petrie Director of Agency Operations xX sdDick Emerman Alaska Energy Authority P.O.Box 190869 701 E.Tudor Road Anchorage,AK 99519-0869 Telephone:907/261-7262Telephone:907/261-7270 (Brent)Telephone:907/261-7253 (Dick)Telecopy:907/561-8584 xX Polly Prchal City Manager XX Roe Sturgulewski Director of Public Works City of UnalaskaP.O.Box 8&9Unalaska,AK 99685 Telepbone:907/581-1251 Telecopy:907/581-1417 BOND COUNSEL X -_Eric Wohlforth Woblforth Argetsinger Johnson &Brecht 900 W,Sth Avenue,Suite 600 Anchorage,AK 99501 Telephone:907/276-6401Telecopy:907/276-5093 UNAKGEO.DST.08/30/91 UNDERWRITER x James F.Seagraves Vice President John Nuveen &Co.Incorporated 2740 Pacific First Centre 1420 Fifth Avenue Seattle,WA 98101-2333 Telephone:206/587-0959 Telecopy:206/382-1589 R'£ X=Lew Greenbaum Katten Muchin &Zavis 525 W.Monroe Street,Suite 1600 Chicago,IL 60606-3693 Telephone:312/902-5413 Telecopy:312/902-1061 PROJECT ENGINEER -X_-Daniel N.SchochetVicePresident-Marketing xX Cliff Philips Vice President -Finance OESI Power Corporation 610 East Glendale Sparks,NV 98431 Telephone:202/355-5666Telecopy:102/355-5656 CONSULTING ENGINEER bow are -_-ee to eee ee a Dend ee a and cre ,.ug PANAFAX TRANSMISSION COVER SHEET PLEASE DELIVER TO: ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992(UNALASKA GEOTHERMAL PROJECT) FINANCING TEAM Charlie Bussell,Alaska Energy Authority (907/561-8584) Brent Petrie,Alaska Energy Authority (907/561-8584) Dick Emerman,Alaska Energy Authority (907/561-8584) Polly Prchal,City of Unalaska (907/581-1417) Roe Sturgulewski,City of Unalaska (907/581-1417) Eric Wohlforth,Wohlforth Argetsinger Johnson &Brecht (907/276-5093) Lew Greenbaum,Katten Muchin &Zavis (907/382-1589) Daniel Schochet,OESI Power Corporation (702/385-5656) Cliff Philips,OESI Power Corporation (702/355-5656) TRANSMITTED FROM:JIM SEAGRAVES JOHN NUVEEN &Co.INCORPORATED SEATTLE,WASHINGTON NUMBER OF PAGES,INCLUDING COVER SHEET: DATE: IF THERE ARE ANY PROBLEMS WITH TRANSMISSION,PLEASE CALL:) . SANDY AT (206)587-0959 a i,Seeee accu rors YW MUVOCON &LUSCH!ite tw SER F.8S John Nuveen &Co.Incorporated 2740 Pacific First Centre Telephone 206.537.0859NUVEENInvestmentBankers14205thAvenue h Seatile,Washington 98101-2233 August 30,1991 MEMORANDUM (VIA FAX) TO:Distribution ListFROM:James F.Seagraves |1G RE:Alaska Energy Authority Power Revenue Bonds,Series 1992 (Unalaska Geothermal Project) Following our discussions in Unalaska on Tuesday,we have requested that Bond Counsel revise and distribute proposed drafts of a power sales agreement between the Authority and the City and a form of agreement between the City and its major industrial customers.These documents should be available mid to late next week for our review priortoameetingscheduledforWednesday,September 11th at 10:00 a.m.in Eric Wohlforth's office. The primary purpose of that meeting will be to reach an understanding on the maincontractualobligationsofthepartiesandthemechanicsofpowersalesanddeliveryandof power costs and payments.Assuming general agreement can be reached,the draft agreements will be revised and distributed to all parties including one or more representatives of the industrial customers.A meeting with all parties to review those draftistentativelyscheduledforSeptember23rdinSeattle. Bond Counsel is currently drafting a letter agreement between the Authority andOESItoarrangeforfundingofconsultingengineer,legal,travel and related costs by OESIthroughtheAuthoritysothatnegotiationscanbegin.That agreement is essential before any real progress can be made on the Project.In particular,a consulting engineer that isfullyqualifiedtoevaluatetheproject,and the City's loads must be on-board as soon as possible --preferably by the September 11th meeting. JFS/sd UNAKMEMIJFS ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992 (Unalaska Geothermal Project) Working Group Distribution List ENERGY A 0 X.Charlie Bussell Executive Director Xs Brent Petrie Director of Agency Operations X.__-sdDiiek Emerman Alaska Exergy Authority P.O.Box 19089 701 E.Tudor Road Anchorage,AK 99519-0869 Telephone:907/261-7262 Telephone:907/261-7270 (Brent)Telephone:907/261-7253 (Dick)Telecopy:907/561-8584 CILY OFUNALASKA Xx Polly Prchal City Manager XX -s_Roe SturgulewskiDirectorofPublic Works City of Unalaska P.O.Box 89 Unalaska,AK 99685 Telephone:907/581-1251 Telecopy:907/581-1417 BOND COUNSE XR Eric Wohlforth Wohlforth Argetsinger Johnson &Brecht 900 W.Sth Avenue,Suite 600 Anchorage,AK 99501 Telephone:907/276-6401Telecopy:907/276-3093 UNAKGEO.DST.08/30/91 ERW X.James F.Seagraves Vice President. John Nuveen &Co.Incorporated 2740 Pacific First Centre 1420 Fifth Avenue Seattle,WA 98101-2333 Telephone:206/587-0959 Telecopy:206/382-1589 ERWR u E xX.=Lew Greenbaum Katten Muchin &Zavis 525 W.Monroe Street,Suite 1600 Chicago,IL 60606-3693 Telephone:312/902-5418 Telecopy:312/902-1061 PROJECT ENGINEER A _-_-Daniel N.SchochetVicePresident-Marketing xX Cliff PhilipsVicePresident -Finance OESI Power Corporation 610 East Glendale Sparks,NV 98431 Telephone:702/355-5666 Telecopy:702/355-5656 NG EN R Te ke Pre ore VOY IWWYOON &CUTDSA (Le Ww HEH ror PANAFAX TRANSMISSION COVER SHEET PLEASE DELIVER TO: ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992 (UNALASKA GEOTHERMAL PROJECT) FINANCING TEAM Charlie Bussell,Alaska Energy Authority (907/561-8584) Brent Petrie,Alaska Energy Authority (907/561-8584) Dick Emerman,Alaska Energy Authority (907/561-8584) Polly Prchal,City of Unalaska (907/581-1417) Roe Sturgulewski,City of Unalaska (907/581-1417) Eric Wohlforth,Wohlforth Argetsinger Johnson &Brecht (907/276-5093) Lew Greenbaum,Katten Muchin &Zavis (907/382-1589) Daniel Schochet,OESI Power Corporation (702/355-5656) Clif Philips,OESI Power Corporation (702/355-5656) TRANSMITTED FROM:JIM SEAGRAVES JOHN NUVEEN &Co.INCORPORATED SEATTLE,WASHINGTON NUMBER OF PAGES,INCLUDING COVER SHEET: DATE: IF THERE ARE ANY PROBLEMS WITH TRANSMISSION,PLEASE CALL: SANDY AT (206)587-0959 come ee ewe _-_-- cov anes rae i oT ar iter!1 oe Uy John Nuveen &Co.Incorporateé 270 Pacific First Centre Telephone 206.557.0959& NUVEEN Investment Bankers 1420 Sth Avenue Seattle,Washington 98101-2333 August 30,1991 MEMORANDUM (VIA FAX) TO:Distribution ListFROM:James F.Seagraves j 1 RE:Alaska Energy Authority Power Revenue Bonds,Series 1992 (Unalaska Geothermal Project) Following our discussions in Unalaska on Tuesday,we have requested that Bond Counsel revise and distribute proposed drafts of a power sales agreement between the Authority and the City and a form of agreement between the City and its major industrial customers.These documents should be available mid to Jate next week for our review prior to a meeting scheduled for Wednesday,September 11th at 10:00 a.m.in Eric Wohiforth'soffice. The primary purpose of that meeting will be to reach an understanding on the main contractual obligations of the parties and the mechanics of power sales and delivery and of power costs and payments.Assuming general agreement can be reached,the draft agreements will be revised and distributed to all parties including one or more representatives of the industrial customers.A meeting with all parties to review those draft is tentatively scheduled for September 23rd in Seattle. Bond Counsel is currently drafting a letter agreement between the Authority and OESI to arrange for funding of consulting engineer,legal,travel and related costs by OESI through the Authority so that negotiations can begin.That agreement is essential before any real progress can be made on the Project.In particular,a consulting engineer that is fully qualified to evaluate the project,and the City's loads must be on-board as soon as possible --preferably by the September 1ith meeting. IFS/sd UNAKMEM1JFS ee we oN swe two oO KT oor ihe wu Hoa r,0oF ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992 (Unalaska Geothermal Project) Working Group Distribution List ALASKA ENERGY AUTHORITY UNDERWRITER 4.Charlie Bussell Xi James F.Seagraves Executive Director Vice President XX Brent Petrie Joba Nuveen &Co.Incorporated Director of Agency Operations 2740 Pacific First Centre 1420 Fifth Avenue X.--dDiick Emerman Seattle,WA 98101-2333 Alaska Energy Authority Telephone:206/587-0959 P.O.Box 190869 Telecopy:206/382-1589 701 E.Tudor Road Anchorage,AK 99519-0869 . INDER RSTelephone:907/261-7262Telephone:907/261-7270 (Brent)7.Lew GreenbaumTelephone:907 [261-7253 (Dick), Telecopy:907 [561-8584 Katten Muchin &Zavis 525 W.Monroe Street,Suite 1600 .Chicago,IL 60606-3693 CITYOFUNALASKA Telephone:312/902-5418 AX.s Polly Prchal Telecopy:312/902-1061 City Manager Xs Roe Sturgulewski PROJECT ENGINEERDirectorofPublicWorks Xs Daniel N.Schochet City of Unalaska Vice President -Marketing P.O.Box 89 Unalaska,AK 99685 x Cliff Philips Vice President -Finance Telepbone:907/581-1251 Telecopy:907/581-1417 OESI Power Corporation 610 East Glendale Sparks,NV 98431BONDCOUNSELTelephone:702/355-5666 4X Eric Wohlforth Telecopy:102/355-5656 Woblforth Argetsinger Johnson &Brecht NSUL G? 900 W.Sth Avenue,Suite 600 Anchorage,AK 99501 Telephone:907/276-6401Telecopy:907/276-5093 UNAKGEO.DST.06/30/91 TOTAL-P.@9 -- 1 John Nuveen &Co.Incorporated 2740 Pacific First Centre Telephone 206.587.0959NUVEENInvestmentBankers1420SthAvenue%ySeattle,Washington 98101-2333 eat August 19,1991 RECEIVED MEMORANDUM AUG 21 193] ALASKA ENERGY AUTHCRITY TO:Financing Team Working Group FROM:James F.Seagraves RE:Alaska Energy Authority Power Revenue Bonds,Series 1992 (Unalaska Geothermal Project)15/51/83At our preliminary meeting in Anchorage on August 8th it was agreed that Bond Counsel would prepare initial drafts of the power sales contracts between the Authority and the City and between the City and its major industrial customers.These draft contracts should be ready for distribution to the working group this week in anticipation of our meeting on the 26th. As an initial step in the process,I have prepared the attached schedule for the financing.It is necessarily very rough,but it will give us something to start with.SNIDERIVVNJFS/sd Enclosures UNAKGEO.SCH.08/19/91 ry,OUD, NOUVEEN John Nuveen &Co.Incorporated 2740 Pacific First Centre Telephone 206.587.0959 Investment Bankers 1420 5th Avenue Seattle,Washington 98101-2333 Alaska Energy Authority Power Revenue Bonds,Series 1992 (Unalaska Geothermal Project) Preliminary Financing Schedule DATE TIME LOCATION EVENT Aug 26 10:00 a.m.Wohlforth Argetsinger Johnson &Brecht Working Group Meeting ) .Anchorage on draft contracts a" Week of Sept 9 10:00 a.m.Anchorage Working Group Meeting 12:00 p.m.Meeting with City 2:00 p.m.Meeting with Companies . Week of Sept 23 Bond Counsel distributes Ist draft of Indenture Week of 9:00 .m.Seattle All Hands Meeting to Sept 30 review draft documents, Oct-Nov Finalize Power Sales Contract/Develop Plan of Finance Dec Approve form of Power Sales Contracts/Finalize Indenture/Draft Official Statement Jan Finalize Official Statement/Obtain Credit Enhancement/Receive Ratings |Feb Market and Price Bonds/Closing and Receipt of Funds ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992 (Unalaska Geothermal Project) Working Group Distribution List ALASKA ENERGY AUTHORITY Charlie Bussell Executive Director Brent Petrie Direetor of Agency Operations [ria nega y/ Alaska Energy Authority P.O.Box 190869 701 E.Tudor Road Anchorage,AK 99519-0869Busse2027/2b(-F256Telephone:Petre 907/261-7262 270 Telecopy:907/561-8584 BOND COUNSEL Eric Wohlforth Wohlforth Argetsinger Johnson &Brecht 900 W.5th Avenue,Suite 600 Anchorage,AK 99501 Telephone:907/276-6401 Telecopy:907/276-5093 UNDERWRITER James F.Seagraves Vice President John Nuveen &Co.Incorporated 2740 Pacific First Centre 1420 Fifth Avenue Seattle,WA 98101-2333 Telephone:206/587-0959 Telecopy:206/382-1589 UNAKGEO.DST.08/19/91 UNDERWRITER'S COUNSEL __Lew Greenbaum Katten Muchin &Zavis 525 W.Monroe Street,Suite 1600 Chicago,IL 60606-3693 Telephone:312/902-5418 Telecopy:312/902-1061 PROJECT ENGINEER Daniel N.Schochet Vice President -Marketing Cliff Philips Vice President -Finance OESI Power Corporation 610 East Glendale Sparks,NV 98431 Telephone:702/355-5666 Telecopy:702/355-5656 CONSULTING ENGINEER -wth eer wwe >ee oO oNNe we wv OO SL TO ee IW PANAFAX TRANSMISSION COVER SHEET PLEASE DELIVER TO: ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992 (UNALASKA GEOTHERMAL ProJEcT) FINANCING TEAM Charlie Bussell,Alaska Energy Authority Brent Petrie,Alaska Energy Authority Dick Emerman,Alaska Energy Authority Jim Klasen,Alaska Attorney General Polly Prchal,City of Unalaska Roe Sturgulewski,City of Unalaska Eric Wohlforth,Wohlforth Argetsinger Johnson &Brecht Lew Greenbaum,Katten Muchin &Zavis Daniel Schochet,OESI Power Corporation Cliff Philips,OESI Power Corporation Richard Johannsen,Perkins Coie Win Peterson,R.W.Beck &Associates Subir Sanyal,Ph.D.,GeothermEx,Inc. Brooks Chandler,Hicks,Boyd,Chandler &Falconer TRANSMITTED FROM:Jim SEAGRAVES 2906 VO1GIo4 (907/561-8584) (907/561-8584) (907/561-8584) (907/358-6872) (907/$81-1417) (907/$81-1417) (907/276-5093) (312/382-1589) (702/355-5656) (702/355-8656) (907/276-3108) (206/441-4964) (415/527-8164) (907/274-3698) r.aa JOHN Nuveen &Co.INCORPORATED SEATTLE,WASHINGTON NUMBER OF PAGES,INCLUDING COVER SHEET: 10/25/91 IF THERE ARE ANY PROBLEMS WITH TRANSMISSION,PLEASE DATE: CALL: SANDY AT (206)587-0959 3 ray2S1/S2/0l re eo iw 497056 9C1GI004 r.dosmeeeweroesee, John Nuveen &Co,Incorporated 2740 Pacific First Centre Telephone 206.587.0959NUVEENInvestmentBankerspore1420SthAvenueP° Seattle.Washington 98101-2333 October 25,1991 MEMORANDUM VIA FAX TO:Financing Team FROM:Jim Seagraves RE:$66,000,000 Alaska Energy Authority Power Revenue Bonds,Series 1992 (Unalaska Geothermal Project) Attached is a revised preliminary financing schedule based on discussions at our meetings on Thursday.Please note that only a limited group of the key representatives from each organization should plan to go to New York for the first set of Insurer/Rating Agency meetings in New York. We all should be prepared for additional meetings if the situation warrants,especially during the period leading up to the mailing of the preliminary official statement. If you have any questions,please give me a call.I look forward to seeing you on November 4th. Sincerely, James F.Seagraves Vice President Utilities and Infrastructure Group JFS/sd UNAKI02S.MEM |NUVEEN Date Time Nov.4 9:00 am. Nov,20 1:30 p.m Nov.21 9:00 asm Dec.5 10:00 a.m. Mar.31 *All imes Pacific Daylight Time. :re a St ee ee heed reUDo John Nuveen &Co.Incorporated 2740 Pacific First Centre . Investment Bankers 4420 Sth Avenue : Seattle.Washington 98101-23 ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,SERIES 1992 Unalaska Geothermal Project Preliminary Financing Schedule October 25,1991 Activity Finanacing Team Meeting -Seattle (RW Beck) -Review Project Status -Review Consultant Work -Review Draft Contracts -Review Bond Documents Meeting -Anchorage (AEA) -Review City/Purchaser Agreement Meeting -Anchorage (AEA) -Review Bond Documents -Review Power Sales/Construction/Fluid Contracts -Develop Presentations to Bond Insurers AEA/BC/ATY/ PUR/UW/UWC Meeting -Anchorage (AEA) -Final Draft Power Sales Agreement -Rehearse Presentations to Bond Insurers Travel to New York Meetings with Rating Agencies/Bond Insurers -New York Meeting -Seattle (RW Beck)-Review Documents /Contracts +Project Status Report -Consultants'Reports Meeting -Seattle (RW Beck) -Review Documents City Council Approval of Power Sales Agreement AEA,Board Approval of Contracts Meeting -Anchorage (ABA) -Execute Contracts Rating Agency/Bond Insurer Meetings -New York _Ja Mail Preliminary Official Statement oat ;bong sn eeeBondSaleMMsQ-Marele PSA SS ey Closi pew © Telephone 206.587.0959