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State of Alaska Regulatory Commission of Alaska Eval of Matanuska Electric December 2011
STATE OF ALASKA REGULATORY COMMISSION OF ALASKA Evaluation of -Matanuska Electric Association,Inc.'s Power Requirements December 2011 a. a RegulatoryCommissionofAlaska701WestEighthAvenue,Suite300Anchorage,Alaska99501(907)276-6222;TTY(907)276-4533STATE OF ALASKA THE REGULATORY COMMISSION OF ALASKA Before Commissioners:T.W.Patch,Chairman Kate Giard Paul F.Lisankie Robert M.Pickett Janis W.Wilson In the Matter of the Evaluation of Matanuska )1-11-5 Electric Association,Inc.'s Power Requirements _) )ORDER NO.1 ORDER OPENING DOCKET AND REQUIRING FILINGS BY THE COMMISSION: At our public meeting on November 23,2011,we decided to open a docket to gather information about the progress of Matanuska Electric Association,Inc. (MEA)toward obtaining new sources of electric power after the expiration of its power supply contract with Chugach Electric Association,Inc.(Chugach)at the end of 2014. We require the following initial information to be filed by MEA,Chugach, Golden Valley Electric Cooperative,Inc.(GVEA),and the Municipality of Anchorage d/b/a Municipal Light and Power (ML&P): 1.A description by Chugach,GVEA,and ML&P of their existing or projected capacity to provide firm or interruptible electric power to MEA beginning at the expiration of MEA's wholesale power agreement with Chugach. I-11-5(1)-(11/28/2011)©Page 1 of3 RegulatoryCommissionofAlaska701WestEighthAvenue,Suite300Anchorage,Alaska99501(907)276-6222;TTY(907)276-45332.Adescription by Chugach,GVEA,and ML&P of whether MEA's power needs could be met by modifying either their current generation or planned generation capacity to meet some or all of MEA's peak or base loads and energy requirements as shown in the Alaska Railbelt Regional Integrated Resource Plan (RIRP)Study.' 3.Along with its current 10-year financial plan,a filing by MEA of a fully inclusive equity management plan for the same ten-year period including: a.A series of high,medium,and low retail rate projections using its currently estimated cost of building its own generation facilities with costs inflated by 40,30,and 20 percent. b.A series of retail rate projections using the RIRP Study fuel cost projections for natural gas and using a 3-times factor for the cost of diesel fuel. c.Aseries of projected operation and maintenance costs associated with the planned generation facilities inflated at 40,30,and 20 percent. We intend to discuss these filings at our next public meeting currently scheduled for December 14,2011.Chugach,GVEA,and ML&P may submit their filings jointly or separately.We believe it would be appropriate for MEA to refrain from making binding contractual commitments for new power generation facilities while this data is being compiled. 'Black &Veatch,Alaska Railbelt Regional Integrated Resource (RIRP)Plan Study,dated February 2010.This study can be found at http:/Avww.aidea.org/aea/RIRPFiles/Alaska_RIRP_Final_Report_120409/AlaskaRIRPFinalReport-Part1 of6.pdf. I-11-5(1)-(11/28/2011)Page 2 of 3 Anchorage,Alaska99501701WestEighthAvenue,Suite300(907)276-6222;TTY(907)276-4533RegulatoryCommissionofAlaskaORDER THE COMMISSION FURTHER ORDERS: 1.By 2:00 p.m.,December 12,2011,Chugach Electric Association, Inc.,Golden Valley Electric Cooperative,Inc.,and the Municipality of Anchorage d/b/a Municipal Light and Power shall file the information required in this order. 2.By 2:00 p.m.,December 12,2011,Matanuska Electric Association, Inc.shail file the information required by this order. 3.Matanuska Electric Association,Inc.,Chugach Electric Association, Inc.,Golden Valley Electric Cooperative,Inc.,and the Municipality of Anchorage d/b/a Municipal Light and Power shall each have a representative attend the December 14, 2011,public meeting.The representatives shall be prepared to discuss the information filed with us in response to Ordering Paragraph Nos.1 and 2 and to answer commission questions.) DATED AND EFFECTIVE at Anchorage,Alaska,this 28th day of November,2011. BY DIRECTION OF THE COMMISSION (SEAL) 1-11-5(1)-(11/28/2011)Page 3 of 3 22...iectricAssociation.Inc.PostOfficeBox2929Palmer,Alaska996481907)745-3231wi, David Pease a open at In-House Counsel ACLCI2 Vhigsns Matanuska Electric Association,Ine. P.O.Box 2929 Palmer,Alaska 99645 Telephone:(907)761-9275 Facsimile:(907)761-9349 e-mail:dwpease@matanuska.com STATE OF ALASKA BEFORE THE REGULATORY COMMISSION OF ALASKA T.W.Patch,Chairman Kate Giard Paul F.Lisankie Robert M.Pickett Janis W.Wilson Before Commissioners: In the Matter of the Evaluation of Matunuska -) Electrig Association,Inc.'»Power Requirements )[-1 1-5 ) MATANUSKA ELECTRIC ASSOCIATION INCSS RESPONSE TO THE REGULATORY COMMSSION OF ALASKA At the RCA public meeting on November 23,2011,Matanuska Electric Association.Inc.(°MEA”)presented a status report on its progress toward a new power plant to be constructed at the old Eklutna hydroelectric powerhouse site.At the conclusion of that meeting,the RCA issued an order opening an informational docket that ordered MEA and certain other Railbelt electric utilities to produce information on the possibility of providing MEA's future electrical needs at another public meeting to be held on December 14.2048 F. MEA's Response fo RCA Docket No,111-8 ; ; Pape bot 5 i uskaElectricAssociation,Inc.fPostOfficeBox2929996045(907)745-3231Palmer,AlaskaQuestions directed to MEA by Commissioners at the November 23,2011 public» meeting focused on power purchases by MEA trom other Railbelt utilities.Order #1 in docket I-1 1-5 required MEA to produce substantial documentation and analysis:to wit: a)A series of high,medium,and low retail rate projections using its currently estimated cost of building its own generation facilities with costs inflated by 40,30,and 20 percent. b)A series of retail rate projections using the RIRP Study fuel cost projections for natural gas and using a 3-times factor for the cost of diesel fuel. ¢)A series of projected operation and maintenance costs associated with the planned generation facilities inflated at 40,30,and 20 percent. MEA hereby submits the required documentation in response to the questions by Commissioners and Order #1 of Docket I-11-5.Included ts a [4-year chronology of studies,analyses and events with supporting exhibits and references showing the measured and elaborate process MEA undertook to reach the conclusion to build its own power plant.The process was arguably set in motion in 2004 when the former MEA General Manager advised Chugach Electric Association.Inc.(°Chugach”)and the RCA that the Tripartite Power Purchase Agreement.under which MEA was an all- requirements customer of Chugach,would not be extended beyond its expiration date of December 31,2014. Following that decision,MEA embarked on a detailed and thorough assessment of its generation options including partnering with other utilities,co-locating equipment and buying some base load power.MEA did not undertake to gather this information on its own,but enlisted the assistance of national consultants,starting in 2004.and ME-A'S Response to ROA Mocket No.111-5 Page 2at§ O..ElectricAssociation,Inc.PostOfficeBox2929Palmer,Alaska99645(907)748-3231extending to the present.These actions are detailed in the Chronology of Power Supply Planning Efforts at Tab A. As is also reflected in the Chronology,MEA continued to confer with both Chugach and Municipal Light &Power (*ML&P)on power supply issues and opportunities.As the RCA is well aware.the participants and shares in the South Power Project were ever changing.MILA&P still has not finalized its plans for additional generation.By late 2010.it was apparent that none of the economic benefits associated with the more fuel efficient gas turbines at the SPP or elsewhere would be forthcoming. Faced with the need to have power for its customers by 2015,the only viable option for MEA,after yeurs of consideration of alternatives and negotiation with others,was to build its own generation facilities. MEA continues to confer with other Railbelt:utilities on matters of mutual interest to regional power generators such as transmission and dispatch,Those discussions are sll ongoing.Obviously,there are significant efficiencies with an integrated transmission system and common dispatch.MEA anticipates contracting for central economic power dispatch services for both cost and efficieney reasons.A fragmented and gerrymandered transmission system)was also a factor in MEA''s decision to construct ils OWN generation system at the Eklutna location.While MEA is encouraged by the recent cooperative developments on common issues such as transmission that have been effected through ARCTEC.the lack of a fully integrated centrally dispatched transmission system based on distance sensitive rates.creates the MIEA's Response to ROA Docket Now be LPS Page J or5 uskaElectricAssociation,Inc.PostOfficeBox2929Palmer,Alaska99645(907)745.3231distinct possibility of MEA or other Railbelt utilities having some of their power supply held hostage by transmission inefficiencies. At Tab B,MEA has provided the analytical documentation the RCA ordered it to produce in Order 1 of this docket.The various scenarios for rate projections for MEA generation,fuel types and operating and maintenance costs are identified in the table of contents.Also included are the same projections with the specified inflation percentages as required in the order.MEA's financial forecast and equity management plan are produced as ordered in Appendix A and B,respectively. MEA welcomes this opportunity to present the RCA-ordered information at the next public meeting,MEA has long recognized the need for an integrated transmission and generation system in the Railbelt.The ability of any regulatory ageney to play a meaningful role in the construction of regional generation facilities (to the extent it has authority to do so)has been superseded by the defined generation projects already in process by the various Railbelt electric utilities,The necessary lead ime for achieving regional oversight and coordination of generation was several years ago when the RCA was advised that wholesale power contracts would not be renewed.At this juncture. what remains is the need for an effective and comprehensive coordination of regional electrical transmission.MEA is optimistic that the newly created Interue Management Committee and/or ARCTEC may assume that challenge. MEAs Response to ROA Docket Na.E-TL-S Pape dat § .-ElectricAssociation,Inc,PostOfficeBox2929Palmer,Alaska99645(97)745.323)MEA is prepared to answer questions concerning its submitted materials at the public meeting on December 14,20]1.MEA is also prepared to engage in discussion at that forum with the other invited attendees concerning their perspective on the status of Railbelt clectric generation. DATED at Palmer,Alaska this fd day of December,2011. UY,J J CapeDavidPease In-House Counsel Matanuska Electric Association.Ine. Alaska Bar No.8706041 MEAs Response to ROA Docket Noob t)-5 Paye Sot 4 Matanuska Electric Association Chronology of Power Supply when 1997 2004 2004 2005 2006 2006 2007 2008 2008 Planning Efforts and Events Event MEA Power Supply Study Phase !:GDS Associates conducted a preliminary screening analysis of 4 power supply options for MEA to investigate to reduce its power costs in the future. MEA advises Chugach they have no intent to procure a power supply from Chugach post 31 December 2014. MEA with the assistance of C.H.Guernsey &Company produced a Power Supply Planning Study that presents a high level overview of a process that culminates in the presentation of options for MEA-owned resources,MEA jointly-owned rescources,and MEA contractural purchase of power from other utility and non-utility regional generation resources. MEA assisted by C.H.Guernsey &Company produced an update of the 2004 study (Power Supply Planning Study Il)that evatuated the Tripartite Agreement against the option to purchase power from grid sources or to develop its own generation assets post-2014. MEA IRP completed.Recommends baseload coal supplemented by simple cycle natural gas-fired turbines. MEA Power Supply Planning Study Phase II presents a high level overview of a process that results in the operation of generation facilities owned by MEA by December 31,2014.Presents genera!timelines for performing various activities in planning,siting,and construction of three different types of generating resources. Inhouse evaluation of various courses of action as discussed in the 2006 power supply planning study.MEA IRP updated by CH2M Hill. Negotiations with Chugach about participating in SPP.MEA hires GDS Associates and CH2M Hill to assist in evaluation of the possibility.MEA chooses to not participate in the project on the basis of added cost of wheeling making the service uneconomic.(Chugach later changed the wheeling proposed cost that made the proposal more economic.See 2009 activities) MEA begins search for an alternate generation site location outside the Mat-Su Borough due to a restrictive ordinance passed by the Borough assembly.Contracts with Shaw Environmental and Infrastructure Company to pursue an Application for MOA Zoning Map Amendment 2009 2009 2009 2010 2010 2010 2010 MOA Assembly passes Ordinance AO2009-37 that rezones 70 acres (the old Eklutna Hydroelectric facility powerhouse location)near Eklutna Village ta allow MEA to construct a gas-fired power plant on the site. IRP updated.Recommends gas-turbine suite.Coal rejected due to timing and difficulty of siting such a plant.Discussions reopened with Chugach and a position in the SPP for a single LM6000 in combined cycle requested. Chugach advises such is not feasible due to state of design having moved beyond changing the suite of turbine-generators.Option placed on land at the Eklutna 70-acre site. MEA selects and contracts with Stone and Webster (a Shaw Group company)to prepare a Technology Evaluation Report.Shaw submits its Technology Evaluation Report and notes that reciprocating engines would be a good fit for MEA.Shaw also contracted to assist in development of the RFP for an EPC contractor to design and build the new Eklutna Generation Station.Chugach and MEA agree to jointly evaluate a power supply arrangement and continue to discuss various proposals for the next year. Several scenarios were discussed among Chugach and MEA staff.A deadline of 30 Nov was placed on these discussion that was not met.MEA concluded that none of the scenarios were economically competitive with an MEA-constructed natural gas plant. EJG discussed the possibility of participating in a new generation site at Plant 2 on land in the adjacent RV park with ML&P.Apparently that land never became available and that idea was shelved in early 2011 as work progressed on the Eklutna site. Shaw evaluates responses ta the RFP for an EPC contractor.Evaluates four responders'indicative bids.Concludes CH2M Hill LM6000 and Wartsila proposals are most cost-effective and recommended CH2M Hill due..." better EPC experience,significant Alaska presence and in house execution of all aspects of the project represent the better offering for MEA."MEA selects CH2M Hill as the EPC contractor.MEA requests a change in said proposal to reflect Wartsila reciprocating engines rather than gas turbines. CH2M Hill bids an indicative price of $228mm.MEA signs a contract to that effect.First phase of the CH2M Hill (LNTP)contract signed Nov 2010. MEA contracts with Shaw Consultants International to conduct an "Hourly Dispatch modeling of the Eklutna Power Plant Proposals"and benchmarks against existing Railbelt generation plants and included sensitivity to natural gas pricing expected for the future.The Wartsila reciprocating engine technology is determined among the less costly Present Value Revenue Requirement basis for its own native load. 2010 2011 2011 2011 2011 MEA staff conducts a month long rigorous consideration and analysis of the alternatives available to include all aspects of the implications of becoming a vertically integrated utility for presentation to the Board of Directors who would be expected to make the decision in November of 2010 to start the process of building the power plant.Results were presented to the Board in August. Chugach Electric Proposes to Provide MEA with generation Capacity, transmission and dispatch services.MEA hired GDS consulting to assist in the analysis that concluded the proposal to be non-competitive with the alternative of MEA providing its own electrical generation needs. Transmission and dispatching services will be discussed later. ADEC,Division of Air Quality (DAQ)grants MEA a Minor Source air emissions permit,to construct the power plant.MEA initiates Construction as required by the permit. MEA completes a new financial forecast with a model that permits comparison of various generation scenarios. MEA releases its EPC contractor for non-performance and failure to honor the 2010 indicative pricing agreement. OD Matanuska Electric Association,Inc. PO.Bax 2929 Palmer,Alaska 99645-2929 Telephone:(907)745-3231 Fax:(907)761-9368 May 12,2004 Mr.Evan J.Griffith Chief Executive Officer Chugach Electric Association,Inc. P.O,Box 196300 Anchorage,AK 99519-6300 Re:Notice of Non-Renewal -Tripartite Agreement Dear Mr.Griffith: Matanuska Electric Association,Inc (MEA)hereby serves notice of its non-renewal of the April 5,1989 Modified Agreement for the Sale and Purchase of Electric Power and Energy by and among Chugach Electric Association,Inc.(CEA),MEA and Alaska Electric Generation and Transmission Cooperative,Inc.(the Tripartite Agreement)upon its scheduled December 31,2014 expiration date. Although our power supply planning efforts are still in progress,MEA has conclusively eliminated continuation of its all requirements relationship with CEA from further consideration. MEA is providing this notice of non-renewal at the earliest possible time as a gesture of goodwill and cooperation as our organizations plan for their respective power supply futures.We trust that you will do likewise as we prepare for the October 12, 2004 meeting that has been scheduled pursuant to Section 12(c)of the TripartiteAgreement. Sincerely, Loy VL.Crores oanWayneD.Carmony General Manager cc:Mark K.Johnson,Chair Regulatory Commission of Alaska AEGA&T Class B file Mahan My Cocumenns:GM sOfice Memesandi enen'2004.05 12 SaGottan Pnpattetun Renewal aea CHUGALrn=doe Griffith POWERING ALASKA'S FUTURE GH S >EE EXECLT FICER .fear ECUTINE OFFIC eopre Y |+efatlo May 18,2004 Mr.Wayne Carmony General Manager Matanuska Electric Association,Inc., P.O.Box 2929) Palmer,Alaska 99645-2929 Dear Wayne: Thank you for your early notice of non-renewal of our all-requirements contract. relationship in your letter of May 12,2004.This timely initiative should help all of us in our planning for future power needs.[note that your letter,while stating clearly that MEA will not need an all-requirements contract with Chugach in the future,it does not indicate what other services,if any,MEA may need in the future.As you are aware, Chugach and other utilities in the Railbelt are planning for future resource needs.If MEA envisions a need for services from Chugach or other Railbelt utilities,it would be very useful and potentially mutually beneficial for us to discuss these needs at the meeting schedule on October 12,2004. Thanks for your consideration. cc:Mark Johnson,RCA SEP-14-2004 TUE 02°16 PM CEA EXECUTIVE FAX No.2 22.987L56¢16994 P,01 coat -CHUGASH Joe Griffith POWERING GLASKA'S FUTURE CriteP txeCulive OFFICER September 14,2004 Wayne D.Carmony,General Manager Matanuska Electric Association,Inc. P.O.Box 2929 Palmer,Alaska 99645 Re:Par 12(c)of Modified Agreement for the Sale and Purchase of Electric Power and Energy betweenChugachElectricAssociationInc.,Matanuska Electric Association Inc.,and Alaska E'ectric Generation and Transmission Association inc. Dear Wayne: In view of your letter of May 12,2004,advising us that you do not plan to be an a I-requirementscustomerofChugachaftertheterminationofourpowersalesagreementand,.n the spirit ofcontinuingprofitablediscussionsofthepowersupplyfutureoftheRailbelt,Chugach would bepleasedtoundertakediscussionsregardingourrole,if any,in MEA's power supp!future. Specifically,we believe that even if MEA does not Jook to Chugach for all of its requirements,MEA may choose to purchase some of its requirements from Chugach.|want to be clear thatChugachisreadytodiscusstheseissuesassoonasyouareready.Indeed,we believe it is inbothourintereststobeginthesediscussionssoonerrathcrthanlater.As you knew,Chugach is engaged in planning for the future and is committed to developing a plan to continue to providereliable,reasonably-priced power to all of its customers regardless of whether sither HEA orMEAcontinuetopurchasepowerfromChugach.However,our clear preference is to continuctouseChugach's generation and transmission capabilities to serve HEA and ME.\whether that is through purchased power contracts,joint resource ownership or some <ther mutually acceptable means.We belicve that the best interests of all electric power consumers inSouthcentralAlaskawillbeservedbyacoordinatedsupplyeffort. Recognizing that you may soon need to decide your future course of action,we are willing tobeginpowerpurchasecontractdiscussionsconcomitantwithourongoingtalksonaRailbeltG&T/JAA just in case these talks are inconclusive.In the event that Railtelt G&T/JAA discussions are successful,we can discontinue efforts on a power purchase contrac: We stand ready to begin these discussions at your convenience.Please let rie Know your intentions in this regard Joc Gnitfith CEO Cbs,ach Foocrig Acsagiaicin,dae Mee Ga Are honega,Alicn VG oe ”7 vow dantusavle:Sar grade @ ribet ae Soa dit aie Sa a 5 os, Matanuska Electric Association,Inc. P.O.Box 2929 Palmer,Alaska 99645-2929 Telephone:(907)745-3231 Fax:(907)761-9368 September 30,2004 Evan J.Griffith Chief Executive Officer Chugach Electric Association,Inc.: P.O,Box 196300 ;, Anchorage,AK 99519-6300 Dear Mr.Griffith: Thank you for your letter dated September 14,2004,concerning Section 12(c)of the Tripartite Agreement. |was,however,under the impression you were aware that the meeting required by Section 12(c)has already been scheduled for October 27,2004.In fact,your staff has indicated that you might be calling me to discuss your attendance. MEA has notified Chugach on many occasions that it should not invest in anyfacilitiesinanticipationofcontinuingtoserveMEAafterexpirationoftheTripartite Agreement.That guidance has not changed. MEA anticipates that both of our organizations will participate in the meeting required by Section 12(c)of the Tripartite Agreement in good faith. Sincerely, Wayne D.Carmony General Manager Enclosures C:\Documents and Settings\vanval_NMy Documents\ADMIN\Correspd\CEA\2004\Griffith re Sec 12¢Tripartite.doc Ot:CER BbPenalPlonaingMg. i PATION B0G6S.os ATreemers aT law Anchorage,Alaska 99501 : 907-263-6300 Facsimile 907-283-6245 www.pattonboggscom November 2,2004 Kyle W.Parker 907-263-6330 kperker@patronbogg:.com Al IMILE (762-4 Donald W.Edwards General Counsel Chugach Electric Association,Inc. 5601 Minnesota Drive P.O.Box 196300 Anchorage,AK 99519-6300 Re:Termination of Matanuska Electric Association and Chugach Electric Association Triparute Agreement/Section 12(c)Meeting Dear Mr.Edwards: I write in regard to our meeting held last Wednesday,October 27,2004,in accordance with Section 12(c)of the parties'power sale and purchase agreement (the "Tripartite Agreement”).As the Matanuska Electric Associaton ("MEA”)management team communicated to the Chugach Electric Association ("Chugach”)management team at that meeting,MEA does not desire to renew,extend or modify the Tnpartte Agreement.Further, MEA does not envision any type of firm power purchase arrangement with Chugach followingexpirationoftheTuparuteAgreementonDecember31,2014. MEA is willing to discuss Chugach's needs should Chugach feel that special measures are required to facilitate its transition into the post-2014 period.It is MEA's firm belief that any such discussions must be kept confidental berween the partes until such ume as an agreement,if any, has been reached.If Chugach would like to enter confidential discussions regarding a potenualtransitionagreement,please contact me and I will provide you with a form confidentiality agreement that MEA would propose executing. Please contact me if you have any questions in this regard. Sincerely W.Parkery KWP/mw wa ene?sn OC |Northern Virginia |Oatlas |Denver |Anchorage |Ocha,Qatar ed &mort Lt4-<cA September 3,2009 Brad Evans,CEO Chugach Electric Association,Inc. PO Box 196300 Anchorage,AK 99519-6300 RE:1)MEA letter of May 12,2004 re'Notice of Non-Renewal -Tripartite Agreement 2)CEA letter of September 14,2004 re:Par 12 (c)of Tripartitie Agreement Dear Brad: MEAs above-referenced letter served notice on Chugach that MEA wouid not renew the so-called Tripartite Power Sales Agreement all-requirements relationship upon its December 31,2014 expiration date.Chugach's response (also attached)left the door open to further discussions on something other than an all-requirements arrangement. I pen this missive to inquire if the message of that letter of five years ago is still the Chugach position,and if so,to advise you that MEA desires to open discussions regarding power sales possibilities. Please advise at the earliest if such discussion is of interest to you Attachments (2) _Matanuska Electric Association,Inc. RCA Docket I-11-005 Order Number 1 Information in Response to Ordering Paragraph 2 Description Page Base Case 1-15 Case #1 -20%Increase in Capital Cost 16-30 Case #2 30%Increase in Capital Cost 31-45 Case #3 -40%Increase in Capital Cost 46-60 Case #4 -$7.75/mmBtu Gas Cost (RIRP 2015 Estimate):61-75 3X Multiplier for Diesel Case #5 -$5.81/mmBtu Gas Cost (RIRP 2015 Estimate);76-90 3X Multiplier for Diesel Case #6 -$8.91/mmBtu Gas Cost (RIRP 2015 Estimate +15%):91-105 3X Multiplier for Diesel Case #7 -$10.08/mmBtu Gas Cost (RIRP 2015 Estimate +30%):106-120 ©|3X Multiplier for Diesel Case #8 -$13.34/mWh Variable O&M (2015 Base Case +20%)121-135 Case #9 -$14.46/mWh Variable O&M (2015 Base Case +30%)136-150 Case #10 -$15.57/mWh Variable O&M (2015 Base Case +40%151-165 Graphs Retail Rate Projection -Base Case 166-167 Projected Equity Ratios -Base Case 168-169 Sensitivity Cases 170 Cumulative Effects on Retail Rates: Cases #1 -#3 Capital Expenditures 171 Cases #4 -#7 Cost of Fuel 172 Cases #8 -#10 Variable O&M Costs 173 Combined Equity Ratio Cases #1 -#3 Capital Expenditures 174 Data Sheet 175 Appendices: ®A.MEA's 2011 -2040 Financial Forecast (May,2011)B.MEA's Equity Management Plan (August,2008) Retail Rate Projection ($%Wh) Sales Revenue per kWh Sold (Annualized) Cost of Power Projection (San) Source: Chugach Electric Assaciation,inc (includes assigned hydro) New Eklutna Generating Plant Bradley Lake Hydro Eklutna Hydro Overall Base Case 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 01490 07617 0.1669 01727 01756 01793 01824 01849 01872 01901 0.1921 2011 2012 2013 2014 2015 2016 2047 2018 2019 2020 2021 0.09549 0.09836 0.10131 0.10435 011545 0.11530 0.11515 011502 0.11489 011477 0.11466 004492 004582 0.04674 0064767 004862 0.04960 005059 0.00591 000609 0.00627 000646 0.00665 000685 000706 0.10662 0.10697 010703 0.10710 0.10717 0.10724 0.10732 Od income Statement -Distribution Base Case 2011 2012 2013 2014 2018 2016 2017 Sales Revenue 103,570,177 -114.130.400 -'119,585,345 «125.570 768 «=129617,016 134278366 «=138 aaa S05OtnerElectncRevenue2.356.860 2 380 429 2 404,233 2,428,275 2 482 558 2.477 084 2501 854 Op.q R and P.ge Capital 105,927,037 116,510,829 121,949,578 427,999,043 132,069,574 136,752,450 140,946,360 Power Production Expense °C is}L¢)te)0 0° Cas!of Purchased Power 66 445 305 74 $06 320 78.310 813 81.870 039 85 146 309 BG 468 429,87 815 328 Transmission Expense 33 450 34.119 34 801 38 497 3.207 37.298 38.412 Oistntution Expense -Operation 3:080.316 3 141 922 3 204.761 3.268.856 3.334.233 3.434.260 3.537.288 Distnbwtion Expense -Manienance 3799 872 3.875 869 3.953 387 4 032.455 4.333 104 4.236.497 4,363 592 Consumer Accounts Expensa 3,164 232 3.227 817 3.292 067 3.357 908 3425 066 3527 618 3.633 653 Customer Service and informational Expense 170 $91 174 003 177,483 161 033 184 653 190 193 195 899SatesExpense[s)is)0 Q [¢]i)Qo Acminstrative and General Expense 10,668 B62 10 882 259 11099 684 14-32%682 11:S48 318 11,894,769 42.251 612 Total Operation and Maintenance Expense.87,362,631 96,241,990 160,073,196 104,067,670 107,787,892 109,789,259 114,835,783 Depraaavon and Amortization Expense 7.790 000 8 383 516 &930.360 9,557 504 10 272.618 44078.962 11.907 927 Tax Expense -Property and Gross Recarpis 347 658 380.793 386 50S 392 303 398 187 404 160 410 223 Tax Expense-Other 694 743 708 638 722 814 737.267 752.012 774,$73 797.810 interest on Long-Term Debt 5 923 305 6 237 639 6 617 462 7 159 828 7,781.202 €698 837 $336 459 interest Charged to Construction (Credit)(33 000)(33 669){34 333)(35 020)(35.720)(36 435)(37,163) Interesl Expense -Other 250 123 153.437 125,522 109 875 $8,556 146,848 227,705 Other Deductions.188 364 492 131 195.974 199 893 203.891 210 008 216.308 Total Cost of Etectric Service 102,523,824 442,264,485 117,017,486 422,189,321 927,218,638 431,066,212 434,697 054 Patronage Capital and Operating Margins 3,403,213 4,246,344 4,932,092 5,809,722 4,850,936 $686,238 6,249,309 Non-Operating Margins -Interest 152 692 158,192 158 356 158,523 158 654 158 S68 189.045 Allowance for Funds Used Dunng Construction 92.000 1?240 12.485 12.734 12 989 13,249 13 $14 income (t.oss)from Equity Investments 0 ie]ie)0 it]fs)a ton Operating Margins -Other (6 828)47,033){7 244)(7,ABT)(7,685)(7,916)(8.183) Generation and Transmission Capa!Crearts 349 982 300 000 25C 000 200.000 2119 100 2.181 815 2,238,164 Otner Caprta!Credits and Fatronage Dividends $75,000 $92,250 610.038 626.318 647 168 666 583 686,580 Extraordmary hems .6 [°)(¢]o 0 iy Net Margins "$,301,993 6.801.837 8,698,837 beazeieie bonnasere beacarces TIER Target 4176 185 1.90 198 2.00 200 2.00 Achieved TIER 476 185 1.90 1.95 2.00 2.00 2.00 Overall Rate Change Required -Current Year 8.57%3.47%191%197%243%190% Overali Rate Change Required -Cumutative (2011 Base Yoar)BST 12 04%,18 95%17 91%20 35%22 25% SRF Rate Change (Base Rates Only.No WPCRA).Current Year £RRS,1035.24at%614%27%7 48% SRF Rate Change (Base Rates Onty,No WPCRA).Last Three Years YP ob 14 02%TT Dt aaTh®5%eg1h Modihed Debt Service Coverage Ratia -Current Year 1st 1603 1921 1983 1580 1878 +88S Modified Debi Service Coverage Ratio -Best 2 of 3 Years 1.839 4952 4.952 1.780 4733 Equity Ratio :415%417%41.7%452%40.4%39.9%39.5% income Statement -Distribution Base Case Saies Revenue Otner Electne Revenve Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Transmission Expense Oistndution Expense -Operation Distnbution Expense -Maintenance Consumer Acoounts Expense Customer Service and infoematonai Expense Sales Expense Adminsstraive and General Expense Total Operation and Maintenance Expense Depreciation snd Amorization Expense Tax Expense -Property and Gross Receipts Tax Expense -Other Interest on Long-Term Dedt Interest Charged to Construction (Creat) Interest Expense -Other Other Deductions Total Cost of Electric Service Patronage Capital and Operating Margins Non-Opersting Margins -Interest! Atiowance tox Funds Used Dunng Construction Income (Loss}from Equrty Investments Non Operatmg Margins -Other Generation and Transmssion Capital Credits Otner Capitat Creaits ano Patronage Dividends Extraordinary Items. Net Margins TIER Target Achieved TIER Overaii Rate Change Required -Current Year Overall Rate Change Required -Cumulative (2011 Base Year) SRF Rate Change (Base Rates Only.No WPCRA}-Current Year SRF Rate Change (Base Rates Onty,No WPCRA)-Last Three Yea Moditied Oebt Service Coverage Ratio -Current Year Modified Debt Service Coverage Ratio -Best 2 of 3 Years Equity Ratio 0 2018 2019 2020 2021 142,653,459 146637602 ©151.138.770 ©-155.045 1262.526 873 2952 142 2.577 663 2603 440 445,180,332 «149,189,944 ©153,716.433 «157,648,566 0 0 0 0 89 187 125 90 583 917 92.005.770 $3,452,723 39 S65 40 752 41974 43.233 3.643.407 3.782 709 3.865.290 3,981 249 4494499 4 625 334 4.768.244 4943.261 3.742 663 3856 942 3670 59%4.089 708 201,776 207,829 214,064 220 486 0 0 0 0 12.619 160 12 997 735 13.287 667 13.789.297 413.928,195 116,067.218 --118.253,571 120,487,958 12,700,918 13 505.876 14,333,504 15.137 203 416 376 422 622 478.961 435 395821,744 BAG 396 871,788 897,942 10.030 651 16 575 496 11,386,679 41,864 264 (37 907)138 665)(39 438)(40.227)226,300 228,787 136 933 84,741 222,797 229 481 236 366 243 487 138,309,074 ©149,837,214 ©-145,608.424 ©148,110,753 6,871,258 7,352,730 8,108,009 8.537.813 159 226 159,410 159,569 159,791 13 784 14.060 14344 14628 0 0 0 ° (8,398)(6 650)(8,909)(9.176) 2.287 603 2.229 552 2.363.395 2 388 477 707 477 728.363 750.245 772 752 °0 0 0 10,030,651 11,386,679 71.864.284 exersress gsceerace 200 2.00 2.00 2.00 2.00 2.00 2.00 200 186%1.58%194%1.36% 24 10%25 68%27 63%28 99% DN +at 2 35%159% ark 677%665%58% 1617 2181 1716 *686 1750 2020 1933 1.933 39.9%39.9%405%40.9% tacome Statement -G&T Base Case Sales Revenue Other Electne Revenue Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Transmission Expense Distnbution Expense -Operation Distribution Expense -Maintenance Consumer Accounts Expense Customer Servos and informabonat Expense Sales Expense Adminsiralive and Genera!Expense Total Operation and Maintenance Expense ' Depreciahon and Amorizaton Expense Tax Expense -Property and Gross Receipts Tax Expense -Other interes!on Long-Term Dent interest Charged te Construction (Crean) interest Expense -Otner Other Deductons Total Cost of Electric Service Patronage Capital and Operating Margins Non-Operating Margins -interest Atlowanon for Funds Used Ounng Construction Income (Loss)from Equily vestments. Non Operating Margins -Otner Generaton and Transmission Capital Credits Otner Capital Credits and Patronage Divxiends Extraordinary items Net Margins Operating TIER Target Achieved Overall TIER Equity Ratio 2011 2012 013 2014 2018 2016 2017 0 °°f)85 146 308 36 468.426 87.615 328 0 0 0 0 0 0 0 0 6 85,146,309 86,468,429 87,895,328 2 °0 °58,897,530 60.480 869 62,105,086 o 0 °0 2.443.699 2.492.573 2542 424 °0 i?)0 o 0 ory°o 9 0 o 0 )0 ry cy)0 ri)0 0 a 0 0 °0 0 °°8 0 C)°0Cy00°°0 0 0 c 0 °0 0 0° 0 0 0 ry 61,341,209 62,973,442 64,647,614 is G 8 0 7 942.000 7,062,000 7942.00 0 ©By)0 0 0 o 0 @ ry 0 °ry 0 0 °0 0 13 794,000 13,524 $36 43.239.841 0 0 0 0 0 0 0 0 ©C 0 0 °6 0 0 0 0 °°° 0 0 0 0 83,077,209 84,439,778 85,829,354 r)0 0 0 2,069,100 2,028,650 1,985,976 °0 0 i)50.009 153,164 252.166 0 0 0 °°° ©0 0 0 0 0 ©8 0 ry ry ° 0 °9 0 °0 e 0 0 0 0 0 0 0 0 °0 ° 0 fy f)fi)2.439,100 64 ::::-_:errrecces ze 000 000 600 000 +45 115 vt 000 000 ood 000 145 116 wt 0.0%0.0%00%0.0%09%18%27% income Statement -G&T Gase Case Sales Revenue Omer Elecine Revenue Operating Revenue and Patronage Capital Power Producton Expense Cost of Purchasea Power Transmission Expense Orstnoution Expanse -Operation Orstnibuvon Expense -Maintenance Consumer Accounts Expense Customer Service and informaponal Expense Sates Expense Adminusvatve and Generat Expensa Total Operation and Maintenance Expense Depreaation and Amoruzation Expense Tax Expense -Property and Gross Receipts Tax Expense -Other Interest on Long Term Debt Inlerest Charged to Construction [Credr) interest Expense -Other Omner Deductons Total Cost of Electric Sanice Patronage Capital and Operating Margins Non-Operating Margins -interest Allowance tor Funds Used Gunng Construction income (Loss)(rom Equity Investments Non Operating Margins -Cither Generavon anc Transmission Capital Creaits ther Capitat Credits and "atronage Dwidends Extraoramary tems. Net Margins Operating TIER Target Achieved Overall TIER Equity Ratio ° 2018 2019 2020 2021 89.467,.125 90,583,917 92,005 770 93.452.723 i is}Q i°) 89,187,125 90,583,917 92,005,770 93,482,723 63,771 200 €5 480.274 67 223,400 69,031,698 2593 273 2645 138 2.698 044 2.782 002 G 0 9 it) i]Q °o ie)i)0 6 Q t)ty [Y) Qo Q o [) Q Ls}0 ts 6 t*)Qo 0 $6,364,472 68,125,442 69,931,441 71,783,700 7 642,000 7 .942,000 7,942,000 7,942,000 0 0 0 c Q i°)0 oO 12,939 .695 12 623.048 12.288 982 14,936 $42 9 0 i o °5 to)6 i]°9 id 87,246 174 88,690,460 90,162,423 98 662.242 1,940,955 1,893,457 4,843,347 1,790 484 356 648 436 065 520 O47 $97 995 0 o Q te) 0 ie) 0 0 ©© is)9 2,329,552 1 145 §115 v1 118 19 120 3.7%4am 59%7.0% Combined Income Statement Base Case Sales Revenue Other Electne Revenue Le]a Ri:and P,ge Capital Power Productun Expense Cost of Purchaseo Power Transmission Expense Oisinbution Expense -Operaton is]1 Expense -ve) Consumer Accounts Expense Customer Service and Informatonal Expense Sates Expense Administrative and General Expense Total Operation and Maintenance Expense Depreciation and Amortization Expense Tax Expense -Property and Gross Rece:pis Tax Expense .OtherInterestonLong-Term Debt Interest Charged to Construction (Credit) interest Expense -Other Otner Deduckons Total Cost of Electric Service F ge Capital and O,4 Margins Non-Operating Margins -interest Allowance for Funds Used Dunng Construction Income (Loss)from Equity Invesiments. Non Operating Margins -Other Generation and Transmssion Capitat Credits Otner Capital Credits and Patronage Dividends Extraordinary items Net Margins Achieved Overall TIER Overall Rate Change Required -Current Year Overall Rate Change Required -Cumulative (2011 Base Year) SRF Rate Change (Base Rates Only,No WPCRA)-Current Year SRF Rate Change (Base Rates Onty,No WPCRA)-Last Three Years Equity Ratlo 2014 2012 2013 2014 2015 2016 2097 103,870,177 116 130,400 119,545,348 125,870,768 129.617 016 134 275 366 138 444 5052.356 860 2 380 429 2 404.233 2.428.275 2 482.558 2.477.084 2,501 854 108,927,037 116.510,829 121,948,578 127,999,043 432,069.874 936,752,450 140,946,360 Qo 0 Qo 0 $8,897 510 60,480,869 62 105 086 66 445 308 74 906 320 78.310 893 81 870 039 2 443 699 2.492.573 2.542 424 33.450 4.119 34,801 35.407 36 207 37.204 35.412 3.060.316 3.141.022 3,204,764 3268.85 3.334 233 3,434,266 3.537.288 3789 872 3.875 669 3.953.387 4632.455 4.943.104 423%497 4,363,592 3.464,232 3.227.537 3.292 067 3.357.908 3.425.066 3.527.818 3.633.653 170.591 174 003 177.483 181.033 184 653 190 163 195.899 0 a te]iy Q Qa [ 10 668 862 10 882.239 14 099.684 14,321,882 11.548 319 11,894 769 12.251 612 87,362,631 96,241,990 100,073,196 104.067,670 83,982,752 86,294,273 88,667,966 ?730,000 8.383 516 6,830,366 9,557 504 18 214.636 19,925,982 19,849 927 347 658 380,793 386,505 392.3 398.187 404,160 410.223 694 743 708.638 722.831 737,267 752.012 774.573 797 810 §,923,305 6 237,639 6447,462 7,159 828 21 §78.202 22.223 173 22.578 300 (33.000){32,660)(34,333){38,020)(38,720)(36,435)(27 163) 260,123 152 437 125 §22 108 875 58 556 146.848 227 708 188 364 192101 196 974 199 693 203.881 210 008 216 308 102,523,824 112,264,485 117,017,406 422,188,321 425,149.538 129,037,562 132,714,075 3,403,213 4,246,344 4,932,062 $809,722 6,920,036 7,714,888 8,235,285 152.692 188.192 158,356 158,523 208.694 312,032 414,233 12 900 12 240 12 485 7M 12,989 43.249 33.514 0 te)by)te)Q °ce) (6 B76)(7.023)(7 244){7 461)(7 685)(7.916)(8,183) 349.982 300 000 250.000 200 000 6 oO a $76 000 592 250 610 018 628.318 47 168 666 583 686 560 8 0 e i)oe te)ts) 4,486,058 $,301,993 §,955,707 6.801837 7,783,202 8,698,837 176 Vas +90 195 136 13S 141 S$57%347%391%197%2.43%1.90% 8 S7%42 04%1595"17-91%20 35%22 25N 6 BB 19?)oath 014%3298 2 48% V2B%4 Ol®VA 21%447%£bat Bote 44 5%41t%41.2%aah 22.3%228%235% Combined Income Stat t Base Case Sales Revenue Other Electne Revenve Operating Revenue and Patronage Capitai Power Producvon Expense Cost of Purchased Power Tranamission Expense Distribution Expense -Operation Orstributton Expense -Mainienance Consumer Accounts Expense Customer Sennce and intormauonal Expense Sales Expense Aommisvatve and General Expense Total Operation and Maintenance Expense Oeprecation and Amoruzaton Expense Tax Expense -Property and Gross Receipts Tax Expense -Otner interest on Long-Term Debt interest Charged lo Consiructon (Credit) Interest Expense .Other Otner Decucuons Total Cost of Electric Senice Patronage Capital and Operating Margins Non-Operating Margins -[nlevest Allowance for Funds Used During Construction Income (Loss)from Equity investments Non Operating Margins -Other Generator and Trananuss.on Capiai Crediis Other Capaal Credrs and Pavonage Diwdends Exvraorainary tems Net Margins Achieved Overall NER Overall Rate Change Required -Current Year Overall Rate Change Required -Cumutateve (2011 Base Year} SRF Rate Change (Base Rates Only,No WPCRA}-Current Year SRF Rate Change (Base Rates Only,No WPCRA)-Last Three Yea Equity Ratio 2018 2049 2020 2024 342653.459 146637802 151138770 155.085.12682,526,873 2582 142 2577 663 2,603,440 145,180,332 «149,189,944 «183,716,433 157,648,566 £3771 200 65 480 274 67 233 400 69.031 698 2593 273 2645 138 2698 041 2.752 002 39 565 40752 44.974 43.233 3.643 407 3.752.709 3 885 290 3.081.2494,494 469 4529334 4.768.214 4,914,265 3742 663 3854 942 3970591 408%708 201 776 207.829 214,064 220,486 0 9 fy 0 12619 160 12 997 735 13.387 667 43.789.297 91,305,541 93.608.713 96,179,241 98,818,934 20 647.518 21 a7 878 22.275,568 23,079,203 46,376 422622 428,661 435,305 @21.744 846.366 871 788 897 942 22 970.380 23 198 Sea 23.675 661 23,800 826 (37,907)(38.668)(39,438)(40,227) 226 300 226,787 136 033 ea 74: 222.797 229483 236 366 243 457 336.366,120 439,943,757 143,765,076 147,320,271 "9,812,213 9,246,187 9,951,357 10,328,294 505 674 595 505 670 646 757,706 13784 14 060 14444 14.626 0 0 0 D (8.398)(8,050)(8,903)(9,176) 6 0 o 0 707 177 728 393 70 245 772792 0 0 0 0 16,030,651 10.875 496 11,386,679 11,864,284 :ze cerzseze:eeneasers 144 446 146 150 186%1.58%1.94%1.36% 24108 28 68%27.63%28 99% 238%159% 665%£Bb 24 4%25.2%263%27.2% Balance Sheet -Distribution Gase Case Utity Piant in Service Construction Work in Progress. Tote!Utiity Plant Less Accumulated Prowsion for Depreciation and Amonization Net Unity Plant Other Property and Investments Cash Short-Term Investments Other Current and Accrued Assets Current and Accrued Assets Detened Debits Totai Assets Memoerships Patronage Capital -Beginning Current Year Capital Credit Retirements Current Year Net Margins Other Margins and Equines Tota!Margins and Equites Gross Long-Term Debt Less Porton Que Within One Year Net Long Term Debt Other Non-Current Liabites Short Term Line of CreditCurrentPortion-Long-Term Debt Other Current and Accrued Liabhtes Current and Accrued Liatities Deterred Credits Tota!Liaburbes and Equinesy 2014 2042 2013 2014 2018 2016 2017 312,669.80)-330.179.801354.315276 =-378.355.270 ©408.744008 «=440.044.4089 472.283 B20 6.452 715 6 581 769 6.713 408 6.847 673 6.984 626 7.424.319 7.266 805 319522516 --336.761.570 --361.028.650 «385.202.9439 41S 728634 4©=-447168726 ©479.550675 (123,831 440)(133 39R 670)(143 589.956)(154 496.936)(166 220.000)(178 863 260)«(152.452 $31) 195.291.076 703,362,900 217438724 730 706006 «=249 508634 «=.68 305466 «287 098.093 21 296 $36 21.988.766 22 648 804 23,277,122 25 843.389 28 491.787 34.216 531 409 620 417.812 426 168 434.692 443,386 452,253 461,298 °O °0 0 9 0 18.324,134 18 690 616 19 064 429 19.445 717 19,634.62 20,231,324 20.635 951 36,733.754 19 108.423 19,490 597 19,880,409 20,278,017 20,683,578 21,097 249 5.154.257 5 287 342 5 362.489 5 469 739 5.579.133 $690 716 5,804 530 240475622 749,717,456 --264.980614 «=--279.333276 ©300,209,174 «=323.171 $47 zaeseerss ::pageresce : 234 675 244,488 249.357 254 344 259,431 266.620 269.912 92 335.933 9593918 100 281 786 «=105 2346/7 =130.984.167 117 658$27 124 589.530(882 406)(959.392)(4,002 818)(4 052.347)(9 109.842){1 764 833)(5,868 B43)4,486 059 $301,993 $955 707 6,801,637 7,781,202 8.696.837 9.338 459 3.587 472 3.659 161 3.732 344 3.806 991 3683.131 3.960.793 4040 009 99,766 273 104 185 416 109 216 378 418 045 $02 121.798 069 128 814.943 -336.369.068 106.883.4469 112 268971 122.52218%«132,562 334 143 $66,301 154,678,131 168,612,652 (5 120 478)(4,228 072)(4383 846)(7 229,276)(7.668 419)(5 408 126)(8.560 312) 101,762,971 108040699 «118.138338 «=125.333.058 =135 897.891 149 270.005 160.053.340 4,229 022 1253 603 1278 675 1304 248 1.330 333 1.356 $40 1384 079 6137 464 5.020 684 4,396,002 2.342 249 5,873,930 9 108,201 9.052 0075120.476 4226.072 4 283 B46 7 229 276 7 668 410 §408 126 8 $60 31214375.696 14 663 210 14 956 475 15 255.604 15.560 716 45.877 936 16 189 365 75 633 628 23,912,146 23.736.323 24.827 129 29.103 96 30 388 258 33 601 668 12 083 716 12 425.392 12.671 90C 12623 338 13.079.805 13.341 401 13.608 225 240,475 622 979333276 «=301209174 323271 S47 38S 2B aM eremszese Balance Sheet -Distribution Base Case Uttity Plant in Service Construction Work in Progress Total Ubidy Plant Lass Accumulated Provision for Depreaation and Amomizaton Net Utiity Plant Other Property and investments Cash Shon-Term Investments Other Current and Accrued Assets Current and Accrued Assets Oseferred Debs Total Assets Memberships Patronaga Capdal -Beginning Current Year Capital Creat Retrements Current Year Net Margins Othe:Margins and Equites Tota!Margins and Equities Gross Long-Term Dets Less Portion Due Within One Year Net Long-Term Debt Other Non-Current Liabilities Short-Term Ling of Creat Current Portion -Long-Term Debt Otner Current and Accrued Liabihes Current and Accrued |iatittes Deterred Credits Tovai Liabildnes and Equies 2018 2018 2020 2021 500570919 533506841 $63.516.724 594.426.801 7.442 141 7 560 384 7,741,892 7 865 823 507983060 541.067325 571.228.3186 602.292 624 (206 946,760)(222.359.606) (238.717,003)(255.991 $09) 301036300 «318 707 719 «382 SIN313 «4H BON 11S 34011314 36 869 256 35,782 896 42 744 124 470,524 479,935 489,534 459.324 0 0 0 0 21,046,670 21,469,643 21.899 036 22.337.017 21,519,194 21 949,578 22,288 $70 22,636,341 5 920,671 6 039 033 6.159 814 6.283 010 362427426 -383.5655B7 «400.842.5528 18 164 591 sascecees pizesezes 0 seececaes ze = 275.311 260 617 286 433 252.162 132089 146 140 308.912 148 582772 187 740.710 (1.980 887)(2.101 634)(2,228 742)(3.154 834) 10,030,651 10.575 496 11.386 678 1)864,284 4120 809 4203 225 4.287 290 4273 036 144505030 53066814 162514433 ©171:198.377 177025,.600 197580085 202048 279 =268.06 9,097(4.207.158)(8 37 646)(9.434.220)(11.110 988) 172816442 184042409 «=192614089 ©196.958 109 1,411,764 1439 996 1 468.796 1.498 172 9.151 486 §477,301 3389 635 5 228 067 4 207.158 8537 646 8 454 220 11110 968 16 513,156 16 643 420 17 180,288 47 $23 898 29 871 601 30 658 367 30 004 143 33 B62 948 13 680 393 14-158 064 14481 164 $4.725,984 362 487 496 «383 S65 S63 478 164 59° 2 ces eeessersa Balance Sheet -G&T Base Case Utittty Plant in Service Construction Work in Progress. Totai Ubirty Plant Less:Accumulatec Provision for Depreciation and Amortization Net Uutity Piant Other Property and Investments Cash Short-Term Investments Other Current ans Accrued Assets Current and Accrued Assets Deferred Debris Totai Assets Memberships Patronage Capital -Begwiung Current Year Capra!Credit Retirements Current Year Net Margins Other Margins ang Equites Total Margins and Equities Gross Long-Term Bedi Less'Porton Que Within One Year Nei Long-Term Dem Other Non-Current Lables Shon-Term Line of Credit Current Porton -Long-Term Cent Olner Current and Accrued Liabilihes Current and Accrved Liabimes Deterred Credits Tota!Liadiibes anc Equites 2011 20:2 2013 2014 2015 2016 2017 °f)0 0 250,800,000 280,800,000 20,800,000 0 °0 0 0 0 o 0 0 i)0 250800000 250800000 =250.800.000 ()0 0 0 (7.862000)(15.864.000)23,826,000) 0 6 r)©242856000 2348916000 226 974.000 0 0 t)0 (1)ts)9 0 c)a °50.000 $0,000 50.000 0 °0 0 $108,222 10 059 396 14.782 423 °0 0 0 °()() a 0 0 0 5,158,222 10 109 396 14 832 423 0 Cy 0 0 () 0 0 0 748,016.22?=-245025,356 =.241,806,423 2 giruseere 2 parsecees saserarae pesaseres gezeessez °()0 0 100 100 100 0 0 °cy a 2119 100 4300915 0 °0 °0 °8 0 c t)0 2.118 100 2,381,618 2.238 166py00°8 0 t) 0 6 °0 7.149,206 4307 015 6.539.179 )0 0 0 =-245.897,022 -240,724,381 235,267,244ry)°0 0 (5.172 644){5 457,137){5787 279) 0 0 f)0 240,724381 «=«-238.267.244 «=229.509.985 6 0 0 0 fo ry © ©c 0 a °C)r) Q ce c G 5,172 644 5.457137 S757 279 0 ¢0 Cy 0 8 0 c 0 0 0 $172 641 5 497 37 S787 27g 0 ty)0 0 cy 0 0 c G 248016222 «=248 07 241 B06 423 serassre:is 2 mestecaze eexzecses eaearazze ° Balance Sheet -G&T Base Case Utkty Plant in Sensce Construcnon Work in Progress Totat Utity Plant Less Accumulated Provision for Depreciation and Amortizaion Net Uulmy Prant Other Property and Invesiments Casn Shon-Term investmentsOtherCurrentandAccrued Assets Current and Accrued Assets Deferred Debits Total Assets Memberships. Patronage Capital -Beginning Current Year Capital Crecd Retrements Current Year Net Margins Otner Margins anc Equites Total Margins and Equities Gross Long-Term Debt Less Portion Due Wahin One Year Net Long-Term Debt Otner Non-Current Liatuities Short-Term tine of Creart Current Porton -Long-Term Debt Other Current and Accrued Lianimes Current and Accrued Liabilines Deferred Credits Tota!Liatehbes anc E quites 2018 2019 2020 2021 250800000 250,800,000 $0,800,000 250,600,000 0 0 9 0 250 806 000 250.800 000 250.600.0600 256,600 000 (31 768 000)(39,710 000)(47 652.000)(55,594 000) 219 032 000 711 090 000 203.146 000 195 206 000 G ")Cy ° 50 000 50.009 $0 000 50.000 19254 747 23.452 369 27 349 768 30 919.809le}is}[)0 19404747 ©=-23,502 368 27 399.768 30 969.809 ©r)°° 236 336 74?234,592,369 226,175,809 -_zs zs seaczaces 160 150 100 100 6 $39 075 8 626 662 17156 234 13 619.629 0 0 0 0 2,287,603 2,328,552 2,363,395 2,388,477 0 0 0 0 6.826 782 43186 334 13.516 779 15,908,206 226,509,965 223 436.635 217.028 039 216,267 604 (6.073 930)(6 407 656)(6 760 436)(7.142.260) 223436035 247.028039 210267604 203,135,344 0 0 0 0 6 6 0 0 6.C073,93C 6,407 966 6 760.436 7.432,260 0 6 0 6 760 436 236.336 747 Bane Combined Balance Sheet Base Cease Untity Plant in Sennce Construction Work Progress Tota!Unity Plant Less'Accumulated Provision for Depreciation and Amortization Net Utiety Plant Other Property and Investments Cash Short-Term investments Other Current and Accrued Assets Curtent and Accrued Assets Deferred Debits Tota!Assets Memberships Patronage Captal Beginning Curent Year Capial Creat Reurements Current Year Nat Margins Qiner Margins and Equives Total Margins and Equities Gross Long-Term Debt Less Porton Due Within One Year Net Long-Term Debt Ciner Non-Cunent Liadilmes Short-Term bine of Creat Current Pomon -Long-Term Debt Other Current and Accrued Liaotes Current and Accrued Liabiihes Deferred Crees Total Liabimes and Equites 2014 2012 2013 2014 2016 2016 2017 3127669.801 330,179,801 354.315.276 -«378,355.270 «659.544.0086 90.644408 =723.083.8706452715658176967134046847673648462671243197266805319122516«336761876 361028680 «385202943 «65528634 ©G97 968726 ©-«-730.380 625 (123.831 440)(133,398,670)(743.589,656;(154.496.5936)(174,162,000)(464,747.260)218.278 831) 495 291.076 263 362 200 217 438 724 230 706.006 492 366 634 503 221 466 $34 072 093 21,296 536 21,986,786 22,648,604 23,277,122 23,724.289 24,190,872 24.677 452 409 620 417 812 426.168 634,692 493,386 502.253 $19 298 0 °°°5 108.222 10.059.396 14,782,423 16.324,134 18 690,616 19 064,429 19.445,717 19,834,632 20,231,324 20,635,051 18733754 18 108 428 V6 490.57 19 880 409 25 436,240 30.702 073 35.920 672 5 154.257 5.257 342 5.362 480 5 469 729 §579.133 5690 716 5 804 530 240475622 245.717.4560 6h 40614 «=270 333,276 963,896,027 580,483,748 peearzace =pecatseie aesrecses pezestaer eenzcsces 239,675 244.458 245 357 254,944 259531 264,720 270012 92 335.533 95939186 100 281.788 «=108 234677 «=110984 167 117 655527 124 $89.530 (882 406)(950,392)(1.002.818)(1.052.347)(1,109,842)(1 764.833)(1.868 643)4,486,059 5,301,993 5,956,707 6,801,837 7,781,202 8,698,837 9.338.459 3.587 412 3.659.161 3732244 3.806.991 3.683 131 3.960.793 4046,009 09766273 «104 185416 «=108 21G37H «=145.048.502 -123.708.189 128815042 136,368,168 106 863.468 ©112.268.971 122,822,184 =132,562,334 389,463,323 395.402.511 --403.880.898(5.120 478)(6.228 072)(4.383.846)(7.229.276)(12841052)(10 865.263)(14.347 591) 101,762.97!108040899 =118,138338 «=125333058 376622271 «384 507,249 ©:389.583.305 4.229 022 4.253 663 1278 675 1,304 248 4.330.333 1,356,940 1.384.079 6.137 464 5.020 864 4 398,002 2.342.249 $873.930 9 108 201 9.052.007 5,120 478 4,228,077 4,383,846 7.220.276 1?841 082 10,665.63 16,317,591 314.375.6096 14663 210 14 956 478 15.255.606 15 560.798 15 871 930 16 189 369 25633 638 23912 146 23738 373 3a 627 12%34 275 698 35 B45 394 39 558 B67 12 089 718 12 571,900 7,823,338 13,079,205 $3,341,401 13,608,275 240 475 672 264940614 279333276 «=847 106296 «=S63 BOR O27 «=:SB AB 3748 binteaesa :nee eaversses prrsessez rereaczes 14 Combined Balance Sheet Bese Case 2018 2019 2020 2021 Unity Plant in Service 781370919 784306041 8143516724 645.220 801 Constructon Work mn Progress.742 144 7 $60 384 7711592 7,865 623 Total Utity Plant 758 783 060 791 887 325 822.028 316 853.002 624 Less Accumulated Provision for Depreciation and Amortizaton 238,714 760)(262 069 606)(286 369 003)(311 562,509) Net Ltity Plant 520 068 300 $29.797 719 $35 65¢343 $41.$07 115 Otner Property and Investments 25,184 629 25,713,022 26.263,267 26,836.018 Cash $20 524 $29.935 539.534 $49 324 Shon-Term investments 19.254 .747 23 452.369 2?349.768 30,919 809 Otner Current ana Accrued Assets 21,048 670 24 469 643 21 696 036 22.337 O17 Current and Accrued Assets 40 825 941 45 453 987 49 786 338 $3,806,150 Deferred Debits §920.621 6,933,633 6,159,844 6.283.010 Tolai Assets $91 997 491 607 001.722 617 870731 €78.432.294 2 Bs as znrecasns Memberships 275 441 280 917 286 533 292.262 Patronage Capra!-Baginning .132.059 146 140,108 910 448 582.772 187,740,710 Current Year Capita!Credit Retirements (1.980 887)(2,101 634)(2 228,742)(3.984.844) Current Year Net Margins 10.036 651 10 575 406 11,386 676 11 B64 284 Other Margins and Equites 4.420,809 4.203 228 4 287.200 4273036 Total Margins and Equities 144 505.130 3$3.066.914 162 314 $33 Pra 118.477 Gross Long-Term,Debt 406.535 565 416 016 090 445 076 318 416 336,701 Less Portion Que Wittun One Year (10,281,088)(14,945 642}(46.194 656)(18.243 248) Net Long-Term Debt 396 254 477 461070 448 402 881 663 400 083 453 Oihe:Non-Current Liabibes 1434 761 4439 996 1 466 706 1.498 172 Shon.Term Line of Creat 9151 486 §477 301 3 389 635 5 228 067 Current Porton -|ong-Term Dett 10 281 088 14.945 642 16,194 656 18.243.248 Other Current and Accrued Liabilities 16,513 156 16 843.420 17 180 268 17 $23.894 Current and Accrued Liatultes .35 445 730 37 266 362 36 76a STY 40 895 208 Deterred Credits 13,880 393 14158 001 14 441 161 14.729,984 Total Labiibes and Equibes 591 $97 401 617 870731 628 432 244 ::eemrssace gesrarecs Base Case sees eesesecuce es ESTIMATED BUSBAR COST OF NEW EKLUTNA PLANT ****"*"see""% Net Installed Estimated Esti d Esti d Capacity of Energy Reqd Cost of New Cost of New Capital New Plant from Eklutna Vanable Requued Projected Ektutna Power Eklutna Power lnvesiment (kW)Wantsila Plant Interest Depreciation O&M Fuel Cost Margins Cost (S/MWh)(S/eWh) 2045 250 800 000 162.222 714 974.628 13 794,000 7,942,000 7,980 518 S50 787.454 2.069,160 82 $43,069 $115.4 30.11545 2016 0 162 222 726 920.248 13 524 336 7 $42,000 8.164,187 52,152,355 2,028,650 83,811,529 $115.3 $0.11530 2017 0 162.222 739 045.051 13,239,841 7 942.000 8383366 53.$52.463 4985.976 85.103,646 $118.2 $0.14515 2018 Q 162 222 784 .351.727 12,939,698 7 942.000 8.608.197 54 988 668 1,940,955 86.419,518 $118.0 $0.11502 2019 [¢)162.222 763 843.003 12 623.048 7.942.000 8.838 822 56.461 887 1,893,457 87.759.214 $1149 $0.11489 2020 0 162 222 776.521 648 12.288 982 7 942 000 9075388 §7,973.060 1843.47 -89.122.778 $1148 $0.11477 2021 0 162.222 789,390.473 14.936 542 7 942 000 9.318.047 59,.$23.451 1,790,481 90.510.222 $114.7 $0.11466 Retail Rate Projection (Sxwh) Sales Revenue per kWh Sold (Annualized) Cost of Power Projection ($*wWn) Source: Chugach Electric Association,Inc (Includes assignea hydrc) New Eklutna Generating Piant Bradley Lake Hydro Eklutna Hydro Overall Case #1;20%Increase in Capital Cost 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 0.1490 01617 0.1669 01727 01815 0.1850 01876 0.1902 0.1924 0.1951 01970 2011 2012 2013 2014 2015 2046 2017 2048 2019 2026 2024 0.09549 ¢.09836 0.10131 6.10435 072211 0.12176 012142 0.12109 012077 0.12046 0 12015 004492 0.04582 004674 004767 004862 0.04960 0.05059 000591 0.00609 000627 000646 000665 0.00685 000706 0.11290 0.41279 0141268 0.11258 0.11248 0.11239 0.11230 income Statement -Distribution Case #1;20%increase in Capital Cost Sales Revenue Other Elactnc Revenue ca]ing Re and F ge Capital Power Production Expense Cost of Purchased Power Transmssion Expense Distributior,Expense -Operation Orstnbutron Expense -Maintenance Consumer Accounts Expense Customer Service and Informational Expense Saies Expense Administrative and General Expense Total Operation and Maintenance Expense Depieciation and Amonizaton Expense Tax Exponse -Propeny and Gross Receipts Tax Expense-Other interest on Long-Term,Debt interest Charged to Construction (C:edit) interest Expense -Other Other Deductons Total Cost of Etectnic Service Li ge Capital and Op g Margins Non-Operating Margins -Interest Altowance tor Funds Used Dunng Consiruchon tncome (Less)from Equity investments Non Operating Margins -Other Generation and Transmission Capital Credits Other Capita!Crects and Patronage Diviwends Extraordinary liems Net Margins TIER Target Achieved TIER Overall Rate Change Required -Current Year Overall Rate Change Required -Cumulative (2011 Base Year) SRF Rate Change (Base Rates Only.No WPCRA)-Current Year SRF Rate Change (Base Rates Only,No WPCRA)-Last Three Years Modified Debt Service Coverage Ratio -Current Year Modified Debt Service Coverage Ratio -Best 2 of 3 Years Equity Ratio 2014 2012 2013 2014 2015 2046 2017 103,870.17?414.930 400 119 545,345 125,570,768 133,964.216 138.556.547 142 661.6402.356.860 2.380.429 2,404,233 2,428,275 2.452558 2,477,084 2.501 854 105,927,037 146,510,829 121,949,578 127,999,043 136,416,774 141,035,630 145,163,694 0 0 0 0 ()0 06644530874806,320 78.31G 613 81870 039 89.907 329 91.187.426 92 448 B91 33.450 34.419 34 801 35.497 36.207 37.294 36.412 3,080,316 3,141,922 2,204,761 3,268,856 3,334,233 3,434,260 3.537 288 3.799.872 3.875 269 2953 387 4.032.455 4113 104 4,236,497 4.363.592 3,164 232 3.227.517 3.292 067 3.357.908 3.425 066 3.527.818 3.633.653 170.591 174,003 177,483 181,033 184,653 190,193 195,899f)0 r)0 C)°31066866210.482.239 11099 888 11.321 882 14.548 349 11,894,769 42.251 612 87,362,631 "96.241,990 100,073,196 104,067,670 112,548,912 114,488,257 -116.469,347 7 790.600 8.383.515 $.930 360 9557 504 10,272,518 11,078,962 11,907 $27 347 658 380 793 386.505 392.303 398.187 404.160 410 223694,743 708 638 722 B17 737.267 752,012 774 $73 797 610 §.923.305 €237.639 6 617.452 7 159 828 7.781.202 8,698,837 9,338 469 (33 000)(33.660)(34 333)(35,020)(35,720)(36.435)(37.163)250,123 193,437 128 522 109.875 58.556 187,194 248 705 188 366 192,131 195 974 499 693 203,691 210.006 216.308 102,523,824 112,264,485 117,017,486 422,149,321 131,979,658 135,775,555 138,351,614 3,403,213 4,246,344 4,932,092 $609,722 4,437,496 5,260,075 5,812,080 152,692 158,192 158,356 158.523 158.694 158 866 15S 045 12.000 12 240 12 485 12.734 12.989 13.249 13.514 0 0 f)0 0 0 0 (6,828)(7,033)(7 24a)(7,461)(7.885)(7.916)18 153) 349 982 300 000 250 000 200,000 2432,920 2.607.577 2.675,392 575.000 $92,259 610938 628.338 647.168 666.583 686.589t)°9 C)0 °5 4,486,059 5,301,993 5.955.707 6,801,837 7,781,202 8.698.897 9,338,459 176 185 1.90 1.98 2.00 2.00 2.00 1.76 1.85 1.90 1.95 2.00 2.00 2.00 857%347%391%5.92%2.3%1.79% 857%Vz O4ve 18.98%21 87%24 18%25.97% 6 ae%199%241%2 3k 331%2 49% 17 28%14 29%17.21%395%5 34%543% 1757 1693 1921 1983 1522 1$52 1 859 1839 1952 1952 1.167 1705S 41.5%417%41.2%41.2%40.4%398%39.4% income S t-Distributi Case #1:20%increase in Capital Cost Sales Revenue Other Electric Revenue Op ry and P.ge Capttal Power Production Expense Cost of Purchased Power Transrssion Expense Distnbution Expense -Operation Distribution Expense -Maintenance Consumer Accounts Expense Customer Service and Informavonal Expense Sales Expense Admnistatve and Genera!Expense Total Operation and Maintenance Expense Depreciation and Amortization Expense Tax Expense -Property and Gross Receipts Tax Expense -Other Inierest on Long-Term Dest Interest Charged to Construction {Creat} Interest Expense -Otner Other Deductions Total Cost of Electne Service Patronage Capital and Operating Margins Non-Operating Margins -Interest Allowance for Funds Used During Construction Income (Loss)trom Equity invesiments, Non Operating Margins -Other Generation and Transmission Capital Crecds Otner Capital Credits and Patronage Dividends Eatraardinary items Net Margins TIER Target Achieved TIER Overali Rate Change Required -Current Year Overall Rate Change Required -Cumulative (2011 Base Year) SRF Rate Change (Base Rates Only.No WPCRA}-Current Year SRF Rate Change (Base Rates Onty,No WPCRA;-Last Threa Yea Modified Dobt Service Coverage Ratlo -Current Year Modified Debt Service Coverage Ratio -Best 2 of 3 Years Equity Ratio 2018 2019 2020 202% 146 603,012 180 747,821 455,146,478 458,978,518 2,526 873 2 552,142 2.577.663 2.603.440 149,329,885 953,269,662 157,724,141 161,581,958 is}[)ie}(°) 93.751 656 95 675 618 96 420 636 97 786 $28 39 $65 40 752 41,974 43.233 3.643 407 3.782.709 3.365 290 3.985.249 4.494 499 4 629.334 4 768 234 4917,261 3742 663 3.854.942 3.970 591 4.085 768 201 776 207 829 214,064 220.486 0 0 ()0 12,619 160 12.997 735 13 387,667 43-789 297 118,492,725 120,558,919 122,668,437 124,821,763 12,700 918 13.505.678 14,333,564 15,137.203 ANG 376 422 622 428 961 435 395 824 748 846,396 874,788 897,942 10.036 651 10 $75 496 11 386 679 11 864 284 (37.9¢7)(38,665)(39 438)(40 227) 258,230 271,890 491,413 180,762 222 797 229 481 236 366 243,487 142,905,535 146,372,018 150,077,770 153,810,578 6,424,350 6,897,644 7,646,372 8,071,380 189,226 159 410 159 549 159,79113,784 14 060 16.341 14628i)0 (1)0 {8 398)18,850)(8,809)(9.176) 2.734594 2.764 638 2 825 032 2.854 910 707 $37 728,383 750 245 772 752i)0 6 t) 10,030,651 10,575,496 11,386,679 11,864,284 ertvaiees zoaitere siete ree praupeese 200 2.00 2.00 200 2.00 2.00 2.00 2.00 474%147%183%1.25% 27 71%2 18%3101%32 26% 237%1.95%2:38 161% a17%6 82%6 75%.595% 1de8 2120 16s3 4 4723 4.990 4.906 1.906 39.7%39.7%40.2%40.6% 19 °o income Statement -G&T Case #1:20%increase in Capital Cost Sates Revenue Other Electric Revenue Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Transmission Expense Distnbubon Expense -Oper avonDistnoutonExpense-Maintenance Consumer Accounts Expense Customer Sennce and informatonal Expense Sales Expense Aamustratve and General Expense Totat Operation and Maintenance Expense Depreciation and Amonuzavon Expense Tax Expense -Property and Grosa Recerpis Tax Expense -Cther Interest on Long-Term Debt Interest Cnarged to Construction (Credit) Interest Expense -Other Other Deductions Total Cost of Electric Service Patronage Capttal and Operating Margins Non-Operating Margins -Interest Allowance tor Funds Usec Dunng Construction Income (Loss)from Equity (nvesiments Non Operating Margins -Other Generavon and Transnvesion Capital Crecits Other Capital Credits ang Patronage Oiwidends Extraordinary hems. Net Margins Operating TIER Target Achieved Overall TER Equity Ratio 2081 2012 2013 2014 2015 2016 2017 f)9 9 0 89,007 320 1 167.426 92,446 891000e000 0 0 89,907,329 91,967,426 92,448,891 C7)C7)r)o 56,897,510 60 480.869 62,105,066 0 0 8 r)7.443.689 2.492.573 2.542 424 0 0 o °0 0 ° 9 0 0 0 0 o 0 0 0 0 0 0 Q 0")©0 0 8 0 0 0 6 0 0 o 0 0')0 0 o 0 0 8 0 6 0 °°0 0 °0 0 0 61,341,209 62,973,442 64,647,514 0 7)0 ry 9 530.400 9.530.400 §830.400 0 0 Q 9 ry 0 0 0 °0 0 °0 0 0 3 °0 16.552 800 16 229.203 15,887,808 0 Q 0 9 0 0 0 9 9 0 0 0 Q 9 0 ')0 0 °0 9 0 0 0 0 87,424,409 88,733,046 90,065.720 0 o 7G ry)2,482,920 2,434,384 2,383,174ryfir)0 50 000 173,587 292 221 0 0 0 °0 °G r)0 2 o 0 o 0 8 0 ")0 0 rf 0 0 0 °° 0 0 Q °° ry ry ry rt) 000 000 000 000 115 415 148 600 000 000 000 495 11 WW 00%0.0%0.0%00%09%17%27% 20 income Statement -G&T Case #1:20%Increase in Capital Cost 2018 2019 2020 2021 Sales Revenue 93.751,658 95.075.618 96,420,636 97 786,528 Other Electne Revenue 0 9 9 is] Operating Revenue and Patronage Capital $3,751,656 95,075,618 96,420,636 97,766,528 Power Producton Expense 63.771 200 65 480,274 67 233,400 69,031 698 Cos!of Purchased Power 2593 273 2 645 138 2.698 041 2.752 002 Transmission Expense o 9 ©Q Distnbution Expense -Operation Le)te)ii)it) Distnbution Expense «Mainienance ©o a ie) Consumer Accounts Expense c i)i)i*) Customer Service and Informational Expense 0 0 ©0 Sales Expense oO is}L}0 Adminatratve and Genera!Expense o 9 Ly v Total Operation and Maintenance Expense 66,364,472 68,125,412 69,931,441 71,783,700 Depreciation ang Amortization Expense 8,530,400 $530,400 4,530,400 9,530,400 Tax Expense -Property and Gross Receipts o 0 Q i) Tax Expense -Other 0 Q a o Interest on Long-Term Dent 1§$27 638 16 147 658 94746 778 94,323.851 interest Charged lo Construction (Credit)i)is}t+}a Inleres!Expense -Other o ie 0 is} Other Deducnons i)6 0 i) Totai Cost of Elactric Service 91,422,510 $2,803,470 94,208,619 95,637,951 Patronage Capital and Operating Margins 2.323,146 2,272,143 2,292,017 2,148,578 Non-Operating Margins -interest 405 366 512 48%613.06 706.332 Allowance for Funds Used During Construction 0 {+}Q ie) Income {Loss)from Equity investments ©[J ts)Es) Non Operating Margins -Other i fs)6 [i] Generation and Transmission Capital Credits i]i)i?)i') Otner Capual Cradils and Patronage Dividends 0 is)(i)9 Extraoramary Ilems Bi)is)tC)iy Net Margins 1 2.784.638 2,854,910 ree ecseuras sazeeeses Operating TIER Target 1725 115 195 118 Achieved Overall NER 116 1.18 119 120 Equity Ratio 37%ay7%58%7.0% 21 °o 0 Combined Income Stat t Case #1:20%increase in Caprta!Cost 2011 2012 2043 2014 2018 2016 2017 Sales Revenue 103,570,177 114,130,400 119,545,345 125,570,768 133,964,216 138,558 Sa?142.661 640 Other Elecinc Revenue 2.356 860 2 360.429 2.404 233 2.428.275 2.452.558 2 477 064 2.501 B54 Operating Revenue and Patronage Capital 105,027,037 146.510,829 -«-321,949.578 «127,999,043 «136,416,774 -141,035.630 --145,163,694 Power Productron Expense [¢]0 Ly o 58 697,510 60,480 869 62,105,065 Cost of Purchaseo Power 66 445,308 74 906 320 78310813 61,870 039 2.443.699 2.492573 2.42424 Transmssion Expense 33.450 19 34 801 35 497 4.207 37 298 38412 Orsinbubon Expense -Operation 3.080.316 3 149,922 3,204,761 3.268 856 3,334,233 3,434,260 3637 288 Orstnbuton Expense -Maintenance 3.799 872 3.875 669 3953 387 4632 465 4153,106 4236497 4363 562 Consumer Accounts Expense 3,164 232 3227 $17 3.292.067 3,357 908 3425 066 3527 618 3633653 Customer Seroe and informatonal Expense 170,591 174,003 177,483 181,033 184 653 190 103 195 680 Sales Expense .te)0 0 [)Q e a Acminsirative and General Expense 10 668 862 10 882 239 11099 864 11,321,882 VON 11 894 769 12,251,612 Total Operation and Maintenance Expense 87,362,631 96,241,990 100,073,196 104,067,670 83,982,792 86,294,273 88,667,966 Depreciation and Amortization Expense 7,780,006 8,363,518 8,930,360 9.557.504 16,603,016 20,609,362 21,438,327 Tax Expense -Property and Gross Rece pts M7 658 380.783 386.505 392.303 398,187 404,160 410,223 Tax Expense -Other .694,743 708 638 722 641 737 267 752.012 774573 787.610 Interes'on Long-Term Debt $823,305 6 237 639 6617 452 7.159 628 24 434,002 24928 040 25,226 268 Interest Charged to Constructon (Credit){33 009){33 660}{34,333)£35,020)(38,720)136.438)(37.163) Interest Expense -Omer 250.123 153.437 425 $22 109,875 $8.556 187 194 248 705 Other Deductrons 168 364 792.131 195 974 199 893 203 891 210.008 216 308 Total Cost of Electric Service 102,523,824 112,264,485 117,017,486 422,189,324 129,496,733 133,341,174 136,968,443 Patronage Capital and Operating Margins 3,403,213 4.246.344 4,932,092 $,808,722 6,920,036 7,694,456 8,195,252 Non-Operating Margins -interest 182 692 158,192 358,356 458 523 208 $94 332 465 457 266 Aitowance for Funds Used Dunng Construction 12,000 12.240 42,485 12734 42.989 43249 13,544 Income (Loss)from Equity investments 0 °is)fs]6 i'){+} Non Operating Margins-Other (6 828){7,033}7 244)(7,4615 (7.885)(7 916)(8 153) Generation and Transmission Capital Cresits .349 987 300 000 250 000 200 000 0 [)fs) Omer Capitai Credas and Pavorage Omoends 575 000 $92 250 610 038 626.18 647 168 646.583 686 580 Extraordinary ems,0 G 0 0 [s)fe]Oo Net Margins §,301.993 §,955,707 7,781,202 8.698.837 9,338,459 es 2 pomesuree exteusees Eazanscce eneerczcs Achieved Overall TIER 176 185 190 198 132 135 1397 Overall Rate Change Required -Current Year 857%3.47%399%$92%2.32%1.79% Overall Rate Change Required -Cumulative (2011 Base Year}8 S7T%12 04%18 95%21 87%24 18%25 G7 SRF Rate Change (Base Rates Only.No WPCRA)-Current Year 6 ba 197%Tare 0 38%33%249% SRF Rate Change (Base Rates Only,No WPCRA)-Last Three Years TT DBR,142%TE2th 295%Le §83% Equity Ratio a1 sy 417%412%41.2%20 4%210%217% 22 Cambined income Stat t Case 81:20%Increase in Caprtal Cast Sates Revenue Other Electnc Revenue [ey 9 R and P ge Capital Power Producton Expense Cos!of Purchased Power Transmssion Expense Bistrbution Expense -Operation Distribution Expense -Maintenance Consumer Accounts Expense Cc Service and intor Expense Sales Expense Administrative and General Expense Total Operation and Maintenance Expense Depreciation and Amorbzation Expense Tax Expense -Property and Gross Receipts Tax Expense -Other Interest on Lang-Term Deot Interest Charged tc Construction (Credit) interest Expense -Other Otner Deductions Total Cost of Electne Service Patronage Capital and Operating Margins Non-Operating Margins -interest Allowance tor Funds Used Dunng Construction Income (Loss)from Equity Investments. Nor,Operating Margins -Other Generabon 3nd Transmssion Capital Credits Otner Capnal Creats and Parronage Dividencs Extraordinary tems Net Margins Achieved Overall TIER Overall Rate Change Required -Current Year Overail Rate Change Roquired -Cumulative (2011 Base Year) SRF Rate Change (Base Rates Only,No WPCRA)-Current Year SRF Rate Change (Base Rates Only,No WPCRA)-Last Thiea You Equrty Ratto 2018 2049 2020 2021 446,803,012 150,717 Sat 195 146,478 158 978.518 2.526 B73 2.952.142 2.577 663 2603 440 949,329,885 «183.269.6602 «157,724,141 «161,581,058 63,771 200 65,480 27 67 233,400 69.031,668 2593.273 2 645 138 2698 044 2.752.00239.565 40 752 4ng7a 43.2333,643,407 3,752,709 3,665,260 2,081,249 4.494 496 4.629.334 6756 214 4.911.265 3742 663 3.854 942 3.970.591 4,089,708201,776 207 826 214,064 220 486'd Q 0 0 12.619 166 12 957 735 43.387 667 13 789 297 91,105,541 93.608,713 6.179.241 98,618,934 22,231,316 23,036,278 23,862,964 24,667 603 416.376 422 627 428.961 435.365821,744 @46,396 871.788 897 042 25,558 280 28 723.153 26.123.458 26,188,134(37.607)(38 665)(38,4385 (40 227) 258 230 271.890 391413 150.762 222 797 229 481 236 366 243 457 140,676,390 144,099,869 147 865,753 151,362,001 "9.783.495 --«9.169,793 9.858.388 10,219.957 564.592 671 900 777 614 666 123 13 784 14.960 14344 14 628 v 0 6 ° (8,398)8 650)(8 309)(8 176) 0 0 0 0 OTT?726 393 750 245 772,752 0 3 0 ry 10,030,651 41,386.679 $4,864,284 :srperess:srpserers 439 t4t 144 145 147%125% 2S 18%32 26% 19%61% GCbrh £oce, 226%23.4%244%254% 23 Balance Sheet -Distribution Case #1:20%increase in Capital Cost Uttity Plant in Service Construction Wark in Progress Total Utity Piant Less'Accumulaled Provision for Depreaation and Amomzaton Net Utility Plant Other Property and investments Cash Snon-Term Investments Otner Current and Accrued Assets Current and Accrued Assets Deferred Debits Total Assets Memberships Patronage Capital -Beginning Currant Year Capital Creat Retirements Current Year Net Margins Other Margins and Equities Tota!Margins and Equities Gross Long-Term Daot tess.Porton Due Within One Year Net Long-Term Debt Other Non-Current Liadiittes Shai Term Line of CreditCurrentPorton-Long-Term Debt Other Current ang Accrued Liabubes Current and Accrued Liaburtes Deferred Credits Totat Labiibes and Equittes 0 2011 2012 2013 2014 2016 2016 2017 312 669 891 336 179 801 354 478 276 378355.270 408 744.008 «=440044.408 §=-472.283 820645271565817696713.404 6 847,673 €984 626 7,124 319 7 266 805319122516336761570361,028,680 «=»388.202.843.435 728634 ©447168726 =479.$50 625 (123.831 440)(153.398670)--(143.589956)(14.496.936)(166 220000)(178 863.260)(192 452.$31) 195.291076 ©203.362900 217.438724 «=230706.006 «=244 508 634 268,305466 287,098 093 21,296 $36 21 988 786 22 648 804 23.277.122 26 257 209 29,331,769 32 493 742 409,626 417.812 426,168 434.652 443,386 452,253 461,268 0 0 0 t)i)()0 18 324 134 16 690 616 19 064 429 19.445 717 1§834 632 20.231 324 20 635.951 98,733,754 19.108.429 19.490.557 19,880,409 20 278 017 20 683,578 21097 249 5 154 257 S$257 382 5.362.489 5 469 739 5.579 133 5 690 716 5.804 $30 2404756220249 717.4 324011575 346.493615 sustssess zpetsecse pesretess 236.675 244,468 249,357 254 34a 259,431 264.620 269.912 92 355 533 95 935 186 100.261 768 105.234 677 110 964.167 147,.655.527 124,$89,530 (882 406)(959.392)(4,002 818)(1,052.347){1 109 842){1 764,833)(4,868 843) 4486 059 5 301,993 5 955 707 6.801.837 7-781 202 8.698.837 9,336,459 3 $87.412 3.599.163 3732344 3,808,991 3.683.131 3.960.793 4 040 009 99 766.273 104,185 416 109.216.3978 115045502 121 798.089 128 814 G42 136 369 068 106,363,489 112,268,971 $22,522,184 132,582,334 143,566,301 184,678,131 168,613,652 (5 120 478)(4 228 072)(4 383 846)(7.229 276)(7 658 430)(5 408,126){8 $60 312) 101.762 971 138 040 B59 118 138 338 125333058 135897 891 149 270 005 160.053.340 1226622 1753603 1278 67S 1304 248 1330333 1356 $40 1384 079 6.137 464 5 020.664 4395 002 2.342 249 6 287,756 9948 184 1.329.218 5120 476 4228072 4382 846 7 229.276 7,668 410 5 408 126 8 S60 31214375696146632101496647515.255 604 15 560 716 15 871 930 76 189 369 25 634 638 23.912 146 23758 323 24 827 129 79 516 B76 31 228 240 38 076 899 17083 718 617-325 392 42.574 900 12 823 338 13075 805 13341404 43 608 229 240 475 627 264 G40 614 279 333 276 301 622 944 304017529 (346 499.615 ze pereeces:=rer eezugsere ree > 24 Balance Sheet -Distribution Case #1:20%increase in Capital Cost Ubhty Plant in Service Construcuon Work in Progress Total Uitity Plant Less Accumulated Provision tor Depreciation and Amortization Net Uvity Plant Other Property and Investments Cash Short-Term Investments Otner Current and Accrued Assets Current and Accrued Assets Deterrea Debts Total Assets Memberships Patronage Capital -Beginning Current Year Capita Credd Retremen!s Current Year Net Margins Other Margins and Equities Total Margins and Equities Gress Long-Term Debt Less Portion Due Wunin One Year Net Long-Term Debt Other Non-Current Liabities Short Tarm |ine of Cradkt Current Portion -Long-Term Deb! Otner Current and Accruad Liabiines Current and Accrued Lisbutes Detetred Cradds Tota!Liabeters and Equities 2018 2013 2020 2021 500 $76 919 533 566.941 563.516 724 $93.426,801 7412 441 7 $60.38 T 71S $92 7 865.823 $07 983 060 541,067,225 $74,228.316 602 292,624 (206.946 760)(222 35%,606)(238 747.003)(258 991 $05) 301 026 300 318 707.749 332 514313 W6 309115 38 735.431 39 068 461 42,423 738 468 861 400 470,824 475,935 486,534 499,324 id is)tu is) 21 048.670 21 469.643 21 899 036 22,337,017 21,559,194 25,949,578 22 388,570 22,636,341 5.920621 6 039.633 6 159 814 6 283.010 38S 744.791 403 683 434 421 271,866364.291 546 zsnesrars 275,311 280,817 266.433 292.162 132059146 140108 910-148 582772157 740 710 (1 980.887)(2.101 634}(2.226.742)(3 154 814) 10,030,651 10,575,496 41,386,679 11,664,284 4.426 809 4 203 225 4 287.290 4 373.036 140595030 153.008 814 =i67314433 179,118 377 177 095690 «$82.580.055 262,048 279 208.069 097 (4 207 158;(3.537 646)(9 434.220)41 110,988) 472616 44284067 40G =192614059 «196 998.109 1634 761 1439 996 1 468 796 1498 172 10,8°8.608 7 556,505 6,030,478 8.335.342 4207 158 8537 646 9 434 220 11110 988 16513 156 16.843 420 47 180.288 17 $23 894 31,595.970 33,037.57)32 644 966 36 970,224 13 680,363 14 458 003 414461 165 14 729,984 403 665 434 423 271 86638574a74 25 Balance Sheet -G&T Case @1:20%increase in Capital Cost 2014 2012 2013 2014 2018 2016 2007 Utuity Plant in Service o 0 Q 0 300 960.000 300,960.000 300 960.000 Constructon Work in Progress.°°[s)fs)°Oo o Total Ubity Plant ie]ij [*]i)306 960,000 300 960.000 300.966 000 Less Accumulated Provision for Depreaation and Amortization 9 [s})[e){9.$30.400)(19,060 800){28 591,206) Net Utiity Plant (e)Q 6 oO 291.429.6000 281 699 200 272.368 800 Other Property and Investments is}[*)is)9 ie)6 [') Cash Q G 0 Qo 50,000 50,000 $0 000 Short-Term investments is)it}9 it)6.129.647 12,061,054 17,716,283 Other Current and Accrued Assets °i?)i')¢Ce)Q By) Current and Accrued Assets 0 fe)°G 6 179 B47 12:31 054 17.768.283 Deferred Betts 0 [e)te)Q iy Le] Total Assets 0 i)o if)297 609 447 294.010.2594 250 137 06. pignurces efseaeare paecoanee soezeccas eereannss Membersnips i Q 9 G 100 100 4160 Patronage Capital -Beginning 6 0 °o o 2 932 920 5 140 897 Current Year Capital Creat Retirements 0 0 a 0 0 Qo L) Curtent Year Nei Margins ty)i)0 i')2 532.820 2 607.977 2675 352 Othe:Margins and Equives 0 fs)0 6 0 i}i) Tota Margins and Equives G o o i)2,533,020 5.190.997 7 816.390 Gross Long-Term Debt )o o Ly)295.078 427 288 869.257 282 320.693 Less Porbon Due With One Year .Qo G i*)fe)(6 207 170){6.548 564)(6.908 735) Nat Long-Term Debt 0 o iy 0 288 669.257 282.320 693 75 441.958 Other Non-Current Lathes ©[)°Q 0 0 6 Short-Term Line of Credit ity i)0 0 Ly)G oO Current Portion -Long.Term Debt o Q 0 0 6 207 170 6 546 564 6.908 735 Other Current ang Accrued Liabiites o i)ie)0 oO Qo ie] Current and Accrued Liabiines,o °Q 6 207 170 6 546 566 6 908 735 Deterred Credas,°[e)a a ft)o 0 Total Liabilities ano Equites ie}is)297 609 44 296 737 083 26 Balance Sheet -G&T Case #1;20%Increase in Capital Cost Utlity Plant in Sennce Construction Work in Progress Total Uttty Plant Less.Accumulated Provision for Depreciation and Amortization Net Utihty Piant Other Property and Investments Casn Shon-Term Investments Other Curent and Accrued Assets Current and Accrued Assets Deferred Debis Totat Assets Memberships Pavonage Capital -Beginning Curreru Year Capitat Cred Revrements Curtent Year Net Margins Other Margins and Equites Total Margins and Equites Gross Long-Term Debt Less Portion Que Within One Year Net Long-Term Deodt Other Non-Current Liabirtes Shonr-Term Line of Creat Current Porton -Long-Term Debt Otmer Current and Accrued Liabiines Current ang Accrued Liabibties Deterted Crevits Total Liabibes and Equites 2018 2019 2020 2021 300,460 000 306,960,000 300,960,000 300,960,000 0 0 0 () 300 960 000 300,960 000 300.960 000 300 960.000 (38 121.600)(47,652,000)(57 182 400)(66.712.800) 262,838 400 253,308 600 243777600 4-234.247,200 ()°f)0 50,000 50.000 50.000 50.000 23.074.459 26 100,781 32,766,619 37.039.406 °0 0 0 23 124 456 28 156 781 32 B16 618 37 089.406 0 ©()0 281.458 781 276,594 219 271.336 606 pagucsese es 100 100 100 100 7 B16 246 10 550.604 33:338.439 16 160,471C]0 9 °2734511 2,784,638 2,825,032 2.8S4.910 0 i)0 0 "96.550 961 13-335 539 16.780 574 19,015 481 278.411 958 208,173,242 260,433,647 252,327,124 (7.238 7 16)(7 6#9.5951 (8.112.523)(8.558.711) 268,123 242 260 433,647 262.321.124 243 767 415 0 0 fe 0 )o ¢0 7 288,796 7 689,895 8,112,523 8.556,711 0 0 c 0 7 PSB 716 7 OBS 598 87412 523 g55871 0 Oo 0 6 271 336 696781456761 27 276 596.219 Combined Balance Sheet Case #1:20%increase in Capital Cost Ubfity Plant in Service Construction Work in Progress Tota:Unity Piant Less.Accumulated Provision for Depreciation and Amorlizaticn Net Unity Piant Otner Property and invesimenis Cash Snon-Term Investments Other Current and Accrued Assets Current and Accrued Assets Deferred Debits Total Assets Memberships Patronage Capital -Beginning Current Year Capital Creat Retirements Current Yoar Net Margins Ctner Margms and Equities Total Margins anc Equities Gross Long-Term Debt Less:Porton Due Witnin One Year Net Long-Term Rebdt Oine:Non-Current Liabilities Shest-Term Line of Credit Current Portion -Long Terr Deb! Other Current and Accrued Lianibes Current and Accrued Liatsities Deferied Creais Tota!Liabiites and Equises 2014 2012 2013 2014 2018 2016 2017 312.669 80t 330 179 804 344,315 276 378.388.270 709 704.008 741004408 773 243 820 6 452 715 6 $81 769 6713 404 6 B47 673 6 984 626 7124319 7 266 BOS319.127 516 336761570 =361.026.680 =385.202 943 «=716.688.6349 748.128 728 780 510.625 (123 331440)(123398670)(143 586.958)(184 496.938)(175 750.400)(197.924.060)(221 043.731) 195.291 O73 203 362 900 ZN?438 724 230 706 006 S40 936.234 550.204 666 556.466 893 27,298,536 21,988,786 22,648,604 23 277,122 23:724.289 24 190 872 24 677.452 406.620 417.812 426.168 £34 692 493,386 §02.253 514 298 °°0 o 6,125,847 12,061,054 17,718,28318.3246 134 18 690,616 19.064 429 19.445.717 19 634.632 20 231,324 20 625.951 318.733.7548 79.108.429 19.490 597 19 BBO 409 26.457 866 32 794 632 3B 885 532 5,184,257 5,257,342 5,362,489 5 469,736 5,579 133 5 690.716 5,304,530 240475622 «249717 ASS P64 940614 «=278.333.2786 «=596,699.520 612 BBO ABS «=6.28.B14.40/ easersess aecexeaes perceszze paren psaecass apanazana preasses: 239 675 244 468 2ag.as7 254 344 259.531 264 720 279.012 $2,335.533 65.939 186 100.281 788 105,234 677 190,984 167 117 656 527 124 589.530 (682.406)199.592)(1,002,818)(1.052.347)(1.100.842)(1 764.833)(1,868 843) 4 466 059 5 301,993 5,685 707 €801 837 7 761,202 8,698,837 6 338,459 287 412 3.689 161 3732.34 3.606 991 3,683,131 3.960.793 4.040 009 90.765 273 104 165416 =106 216.378 115 045 502 421,798 169 126 615.043 138,369 168 {06883449 152268 971 122 522 184 132562334 426,842728 ©443.547.288 ©-480.934,345 (5,120,478){4 228,072){6 383,848}(7 220.276)(13.878.580)(1.956.690)(5.469.047) 405,762 971 108040699 ©1168.138 336 125933058 428.767 148 431.590.698 «435.465 798 4228022 4253 603 $278 675 1306 248 1.330.333 1356 949 1,364 079 6 137 464 §020 664 4395 002 2.342 249 6,287,781 6.548 184 40.329,216 5,120,478 4228072 4383 646 7 229,276 13675,560 11 956 699 15 465,547 1437 34.663 210 14.956 475 15 255 604 15 560 746 35 871.930 16 189 368 25.633 638 23:912,146 23.735 323 34 B27 138 35 724 046 3?776 808 41 687 634 42,083 718 412.325 392 17 874.900 12.823 338 13078 B65 13341401 43.608 226 240 475 62 249717 456 266 YAO GIA 279333276 «=$8 699.520 812680886 678 814.407 :eutreires parsazccs banagcese eerersest 28 Combined Balance Sheet Case #1:20%Increase in Capita!Cost Ublty Piant in Service Construction Work in Progress Total Utity Pant Less.Accumulated Provision for Depreaabon ana Amortization Net Unity Piant Other Property and Investments Casn Shon-Term Investments Other Current and Accrued Assets Current and Accrued Assets Deterred Debits Total Assets Memberships Patronage Captal-Beginning Current Year Capital Creda Retrements Current Year Net Margins Other Margins and Equibes Total Margins and Equibes Gross Long-Term Debt Less Porbon Due Witnin One Year Net Long-Term Dent Other Non-Current Liabitties Short-Term Line of Creait Current Portion -Long-Term Dept Otner Current and Accrued Liabites Current and Accrued Liabhves Deterred Credits Total Liaddes and Equibes 2018 7018 2020 2021 BO1S30 619 834,466,941 854,476,724 95 386 801 7.412.141 7 560.384 7744 592 7 865.823 608943060 842027325 872188316 903.252 624 (245,068 360)(270.011.6068)(295 699.402)(322 704 305) 863 874 700 72015750 576288913 580 548.315 25,184,629 28,713,022 26 263,267 26,836,019 520 524 529.935 539,534 540 324 23,074,459 28,100,781 32,766.619 37,039 406 21,048 670 21 469 643 21 069.036 22397 O97 44 643 653 36 100.359 55.205 168 59925 747 5.920.671 6,039,033 0,150,814 6,283,010 663 917 183 eizeceent 278431 260917 266 523 292 262 132059.146 140 108910 =148882772 --187 740720 (1,980,887)(2 103.634)(2.228 742)(3154 B14) 40,030 654 10.575 496 11 386 678 11 Boa,2664.120.809 4 203,225 4287 290 4573036 144505930 183066914 «6251853301711 aT? 452.437 587 460.703.2097 -482.421,926 ©460,390.222{11.495.873)(46227241)(17.846.743)(19 669.699)"40.941 684 =444 476056 «=444995183 440 720.522 tas yas 1 438 996 1 466 798 1498 172 16 BTS 606 7 656.505 £030 476 6 335 342 41,495 873 16 227 241 17,846,743 19 669 699 16.513 186 46 843.420 17 180 2BA 1?523.894 "38 684 635 2 "40 757 508 45 528935 13.480 393 158 O01 44441184 14 729 984639623603€53 865134 «=GE HIT 181 «F893 081 Brut 29 whee here Case #1 2015 2016 2017 2018 2019 2020 2021 wtteerersessess "ESTIMATED BUSBAR COST OF NEW EKLUTNA PLANT"*ot ett essesNetInstalledEstimatedEstimated Estimated Capacity of Energy Reqd Cost of New Cost of New Caputal New Piant from Ekluina Vanabie Required Projected Ekiutna Power Ekiutna Power Investment (kW)Wantsita Plant interest Depreciation O&M Fuel Cost Margins Cost (S/MWh)(S/kWh) 300 960 000 162 222 714 974.628 16.552 800 9 530 400 7.950.518 $0,787.451 2.482.920 87.304.089 $122.4 $0.12211 (¢)162.222 726,920,248 16,229,203 9.530.400 8 164.187 §2.152,358 2.434 381 88 $10 526 $121.8 $0.12476 [*)162.222 739.045.051 15.887 809 9.530 400 8 383.366 53,552 463 2 383,171 89.737,210 $421.4 $0.12142 is]162,222 751,351.727 15.527 638 9 530 400 8.608.197 54.988 668 2.329.146 90.984 049 $121.4 $0.12109 ie)162 222 753.843 003 45 147 658 9 530 400 8 $38,822 56 461 887 2.272.149 92 250915 $120.8 $0.12077 0 162.222 776.521,648 14 746.778 9 530 400 9,075 388 57,973,060 2,212,017 93.537.644 $120.5 $0.12046 0 162 222 789,390,473 14 323,851 9.536 400 9318047 59.523.151 2.148 578 94,844 026 $120.4 $0.12015 30 Case #2:30%Increase in Capital Cost Retail Rate Projection (Saw} 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Sales Revenue per kWh Sold (Annualized)0.1490 890.1617 01669 0.1727 01845 01878 01904 01929 01950 0.1977 01995 Cost of Power Projection (S*Wh) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: Chugach Electric Association,Inc. (includes assigned hydro)0.09549 009836 010131 010435 New Ekluina Generating Plant 012544 012499 0.12456 0.12413 0.12371 0.12330 0 12289 Bradley Lake Hydro 004492 004582 0.04674 004767 004862 004960 005059 Eklutna Hydro 0.00591 000609 0.00627 0.00646 000665 000685 000706 Overall 011588 011569 0.11554 011532 011514 0.11496 011478 32 income Statement -Distribution Case #2:30%increase in Capitat Cost Sales Revenve Other Electne Revenue Op.9 Ri and Pat ge Capital. Power Production Expense Cost of Purchased Power Transmssion Expense Dhstnbuton Expense -Operation Distribution E «panse -Maintenance Consumer Accounts Expense Customer Service and Informabvona!Expense Sales Expense Administrative and Genera!Expense Total Operation and Maintenance Expense Depreciation and Amamzaton Expense Jax Expense -Property and Gross Rece:p!s Tax Expense -Other Interest on Long-Term Debt Interest Charged to Construction (Creait} interes:Expense -Other Other Deductions Total Coat of Electric Service Patronage Capital and Operating Margins Non-Operating Margins -interes! Allowance for i unds Used Dunng Construction income (Loss)from Equity Investments Non Operating Margins -Ciher Generaton and Transimussion Capital Credits Otner Capita!Credits and Patronage Diviaends Extraordinary tems Net Margins TIER Target Achieved TIER Overall Rate Change Required -Current Year Overatt Rate Change Required -Cumutative (2011 Base Year) SRF Rate Change (Base Rates Only,No WPCRA)-Current Year SRF Rate Change (Base Rates Only,No WPCRA)-Last Three Years Modified Debt Service Caverage Ratio -Current Year Modified Debt Service Coverage Ratio -Best 2 of 3 Years Equity Ratio 2011 2012 2013 2014 2015 2016 2017 163 570 177 114 130,400 119,545 345 125 $70,768 136,137 816 440,700,137 144 770 507 2 356 860 2380 429 2 404.233 2 426 275 2 452 558 2.477 084 2.501 854 105,927,037 116,510,829 121,949,578 127,999,043 138,590,374 143,177,220 947,272,362 t*)i)Q 0 t¢)6 i) 66.445 308 74 906 320 78310 813 81 870 039 92 287 839 93,516 925 94.765 673 33,450 34,119 34 601 35,497 36.207 '37,294 38412 3 080.316 3.441 922 3.204 761 3.268 856 3.244 233 3,434,260 3537 268 3.799 872 3875 869 3953 387 4032 455 4193,104 4.236.497 4.343.532 3 164,232 3.227 517 3,292 067 3,357,908 3.425 066 3.527,818 3.633 653 170 591 174.003 177 483 181 033 184.653 166.193 195.699 VY)i)0 i)te]0 tC] 40 668 862 10 882,239 11,099 864 197,321 882 11,$48.319 11,894,769 12,281 612 87,362,631 96,241,990 100.073,196 104,067,670 114,929.422 116,837,755 118.786.1268 ?790 006 8.383.516 8 930 360 9 557 $04 10.272 618 11,078,92 11 967.927 347 658 380 793 386 508 392 303 398 187 404.160 410 223 604 743 70E 638 422 611 737 267 752 012 714 $73 797 819 §923 308 €.237.639 6617 452 7 189 828 7 781,202 8 698 837 9336459 (33 000)(33 660)(34 333){35 020)(35 720)(%435)(37.163) 290,123 453.437 128.522 109 675 58.556 162,367 259,204 168 364 192 331 15.074 199 693 203.891 210 068 216 308 102,523,824 392.264,485 117,017 486 122,189,321 134,360,168 138,130,226 141,678,896 3,403,213 4,246,344 4,932,092 $,809,722 4,230,206 5,046,994 5,593,466 152 692 158 192 188 356 158.$23 158 694 158 668 159,045 12 000 12.240 12 485 W734 12 989 43.249 13.514 i)0 0 5 (9)oO ° (6 828)FID (7 244)(7,464){7 685)(7,916)(8,153) 349 982 390 000 250 000 200 000 2 739,830 2 821.059 2 894 007 575 G00 §92 250 610 018 628.318 647 168 666 583 686 $809QO0o0Lyi] 4.486.059 $,3014,993 $.95$,707 6,801,837 8,698,837 9.338.459 4.76 485 1.90 195 2.00 2.00 200 V.76 185 190 1.95 2.00 2.00 2.00 887%347%39%790%2.26%73% BST 122 04%15 GS%23-85%26 10%27 83% %BEX *ne Fat 063%332%250% 17 2A%14 02%V2 1S 369%5.10%519% Vis]4653 192 1963 +508 1539 1 Bad 1839 1952 1952 1.761 1.692 415%41.7%412%41.2%40 4%39.7%39.3% 33 income Statement -Distribution Case #2:30%increase in Capita!Cost Sales Revenue Other Etectne Revenue Operating Revenue and Patronage Capital. Power Producbon Expense Cost of Purchased Power Transmssion Expense Disindbution Expense -Operation Orstndution Expense -Maintenance Consumer Accounts Expense Customer Sennce and informationai Expense Sales Expense Administrative and General Expense Total Operation and Maintenance Expense Cepreciation and Amorization Expense Tax Expense -Propeny anc Gross Racenpts Tax Expense -Other Interest on Long-Term Deot interest Charged to Construction (Creat; inferest Expense -Other Otner Deductions Totai Cost of Electric Service Patronage Capitat and Operating Margins Non-Operating Margins -interes! Allowance for Funds Used Dunng Construction Income (Loss)from Equity Investments Non Operating Margins -Other Generanon and Transmission Capital Credits Otner Capital Croats anc Patronage Diends Extraordmary items. Net Margins TIER Target Achieved TIER Overall Rate Chango Required -Current Year Overalt Rate Change Required -Cumulative (2011 Base Year) SRF Rate Change (Gase Rates Only,No WPCRA)-Current Year SRt Rate Change (Base Rates Onty,No WPCRA).-Last Three Yea Mod:fied Debt Service Coverage Ratio -Current Year Moditied Debt Service Coverage Ratio -Best 2 of 3 Years Equity Ratio 2018 2019 2020 2021 48077789 ©=--182,757 380 =157,150,332 160,645 215 2526 873 2 552 142 2.577 663 2 603 440 154,404,661 155,309,521 159,727,995 163,548,654 0 0 0 ° 6 033 971 97 321 469 98 628 069 99 953.431 39 S65 40.752 41974 43.233 3643 407 3.752.709 3 865.290 3981 2494494499462933447682144914261 3,742 663 3.BS4 G42 3,970 591 4.089 708 201.776 207,829 214 064 220 466 0 0 9 ° 12,619,160 12,997 735 43,387,667 13.789.297 120,774,991 122,804,770 -«-124,875.669 126,984,865 12 700.918 13 505 878 14,333,564 15 137.203 416 376 422 622 426,561 438 495 821 744 346 396 871 788 897 942 10.030 651 10 575 496 14 388.679 41 664.284 (37 907)(38 665)(3%438)140,227) 274.566 293.442 218 653 183,772 222 767 279,481 236.365 243.457 145,203,766 ©448,639.420 =152,312,443 155,710,491 6,200,896 6,670,401 7,415,553 7,838,163 189 226 159 410 759,599 159.791 43 784 14 060 14341 14 628 0 r)ry)o {8 398)(6.650)(8,909)(9 176) 2 957.965 3012 163 3055 851 3.088 1277 707 177 728 393 750,245 772 752 o 0 0 0 16,030 651 10.575.496 11,386.679 17,864,284 2.00 2.00 200 200 2.00 200 200 200 168%14%177%1.20% 29 59%30 93%32 70%33 20% 2 455,"a,ras 18% 821%€8&%6 Ta%598% 1S7€2 16S 1 68t 1653 1750 1974 1.393 1893 39 6%39.6%401%405% 34 income Statement -G&T Case #2:30%increase in Capttal Cost 2018 2012 2013 2014 2015 2016 2037 Sates Revenue ie)G o i 92,287 B39 93.516 925 94,765,673 Otner Elecinc Revenua 0 c Pi}0 0 Qo ie) Operating Revenue and Patronage Capital iy 0 0 92,287,839 93,516,925 94,765,673 Power Production Expense Ls}Qo [)i')58 897,510 60 480 869 62,105.086 Cost of Purchased Power o fe]0 te)2.443.669 2.492 573 2 542 424 Transmission Expense 5 6 te}a t+)o 0 Distributon Expense -Operation 0 0 °o tL)oO te) Distnbution E cpensa -Maintenance 0 Q [s]ie}fa)it]a Consumer Accounts Expense i}i)0 o i)i)is} Customer Service and Informational Expense °ts)0 0 i)ty 0 Sales Expense 9 a ie}(+)b)[)0 Administrative and Genera!Expense G 0 9 o 9 [s)[) Total Operation and Maintenance Expense oO 0 0 o 64,341,208 62,973.442 64,647,515 Depreciaban and Amortization Expense is]DP)Le)ie)16,324 660 10.324 600 10 324 600 Tax Expense -Propeny and Gross Receipis 0 i)0 ie)0 fa)oO Tax Expense -Other a fe}0 ie)i}6 0 Interest on Long-Term Debt i)i)c is]1?932.200 17 $81637 17,211,793 interest Charged to Constructvon (Creat)Q be c 0 0 ©9 Interest Expense -Other o ie)()o t)te)Q Otner Deductions Ct)(*)it)fe}oO 0 6 Totat Coat of Electric Service iy a o is)89.598,009 90.879,679 92,183,904 Patronage Capital and Operating Margins 0 9 0 0 2,669,830 2,637,246 2,581,769 Non-Operating Margins -Interest oO it)tC)QO 50 000 183 813 312.238 Allowance tor Funds Used Dunng Construction i)o te){¢}te)Q Q Income (Loss)from Equity invastmenis o ie}a it}[')ie)i] Non Operating Margins -Cther fe)(°)[s}0 9 is]9 Generation and Transmission Caprial Credits py)is)@ [')0 LY)Ls) Other Capital Credits and Patronage Dridends 6 te}i}o (y tt)oO Extraordinary Items ie)te}i is)o te}i} Net Margins 0 [)0 6 2.739,830 Operating TIER Target 000 000 000 C00 115 115 115 Achieved Overall TIER ooo C06 000 coo 148 116 Wiz Equity Ratio .00%00%oon 0.0%o8%1.7%27% 35 4 income Statement -G&T Case #2;30%Increase in Capital Cost Sales Revenue Other Elecine Revenue Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Transmission Expense O:stnibution Expense -Operaton Dratrbupon Expense -Maintenance Coneumer Accounis Expense Customer Service and intormabonal Expense Sales Expense Aamimstratrve and General Expense Total Op:and Exp Depreciatian and Amoruzation Expense Tax Expense -Property and Gross Receipts Tax Expense -Other interest on Long-Term Debt interest Charged to Construction (Credit) interes!Expense -Other Other Deductions Totat Cost of Electric Service P ge Capital and Operating Margins Non-Operating Margins -interest Aitowance for Funds Used Dunng Construction income (Loss)from Equity Investments Non Operating Margins -Other Generation ano Fransmission Capxtal Credits Owner Capital Credits and Patronage Owdends Extraordinary Items. Net Margins Operating TIER Target Achieved Overall TIER Equity Ratio 2018 2019 2020 2021 96,033,971 97,321,469 98,628,069 99.953.431 Q 8 0 0 96,033,921 97,321,469 94,628,069 99,953,431 63,771,200 65,480,274 67,232 400 69,031,698 2.593 273 2 645.138 2.698 041 2.752.902 0 0 0 0 0 ]]9 0 a 0 0 o 0 0 Q 0 i)0 9r)9 0 0 0 6 0 0 66,364,472 6B.425,412 69,931,441 74,783,700 1.324 600 40 324.600 70.324.600 16 324,600 6 a 9 9 G o 6 0 16 621 608 16 409.962 45 975.677 18 517 $05 c a o 0 c o Q 0 0 0 0 0 93.510,680 $4,359,974 96,231,718 97,625,805 2,523,241 2,461,494 2,396,35¢2,327,626 434 724 550 686 659 800 760,501 e 0 0 0 0 )°0 0 Q ®0 0 0 0 0 c 0 o 0 0 0 c ) 2,987,965 3.012.181 3,055,651 r=agacceess V41s 245 118 y415 136 118 9 120 37%4%5.8%7.0% 36 *] Combined 1;State ry Case #2:30%Increase in Capital Cost 0 2014 2042 2013 2014 2048 2016 2097 Sales Revenue 103 570.177 134,130,400 118.545 345 428.570.768 136,597 816 140,700 137 144,770,507 Otner Elecine Revenue 2 356 860 2 380 426 2.404 233 2 428.275 2.452.$58 2 477 084 2.501 854 Operating Revenue and Patronage Capital 105,927,037 116,510,629 421,949,578 127,999,043 438,590,374 143,177,220 447,272,362 Power Production Expense it}i}a 0 58 897 510 60,480,869 62 105,086 Cost of Purchased Power 66 445 308 74 906 320 78.310 813 61,870 039 2.443 699 2 492.573 2.542 424 Transmission Expense : 33 450 yay M4 601 35 497 3%207 3?294 38412 Distnbution Expense .Operation 3,080 316 3.141922 3,204,761 3,262,856 3,334,233 3,434,260 3,537,238 Disinbubon Expense -Maintenance 3796 872 3.875.569 3963 387 4032 455 4313,104 4.236.407 4,363 592 Consumer Accounts Expense 3.164.232 3227 $17 3.292 067 3357 908 3 425,066 3.527 818 3.633 653 Customer Senice and Informationai Expense 170,691 174.003 177 483 181,033 184 653 190,193 195.809 Sales Expense ie)tC)0 Qo Le)Q 0 Administrative and Genera!Expense 10,668 562 10 882 239 11.095 B84 11,321,882 11 S48 319 11,894 .766 12,251.612 Total Operation and Maintenance Expense 87,362,631 96,241,990 100,073,196 104,067,670 83,982,792 86,294,273 88,667,966 Depreciation and Amortzation Expense 7,790,000 83832,516 8,930,360 8,557 $04 20,597 218 21,403 562 22,232,527 Tax Expense -Property and Gross Receipts HA7.658 380 793 386 505 392 303 398.187 404,160 416.223 Tax Expense -Other 696 743 708.638 722.815 737,267 752,012 774 $73 797 810 Interest on Long-Term Debt $823,305 6 237 639 6 617,452 7.159.828 25,713,402 26,280,474 26 550.252 interest Charged to Construction (Crean){33 000)(33,660)(34,333)(38.020)(38,720)(36,435)(37,163) interest Expense -Other 250,123 1§3 437 425 $22 108 B75 58 556 162 367 255.204 Other Dedtuctons 186.364 782 331 195 O74 199 893 203 891 210 008 216 308 Total Cost of Eisctric Service 102,523,824 112,264,485 117,017 486 422,189,321 134,670,338 135,492,981 439,097,127 Patronage Capital and Operating Margins _3,403.213 4,246,344 4,932,092 5,809,722 6,920.036 7,684,240 8,175,235 Non-Operating Margins -Interest 152 682 188 192 156 356 158.523 208 604 W266!471,263 Allowance for Funds Used Dunng Construction 12 000 12 240 42 485 12,734 12 989.13249 13 S14 income 'Lass)from Equity Invesunents iy ia 0 ty i}[>]te) Non Operating Margins -Other (6 828)(7.933)17 244){7.461}(7,685)(7,016)(8 183) Genergton and Transmission Capital Credits 349 982 300.000 256.000 200 000 G 6 Other Capeal Credits and Patronage Owidends 575 000 $92 250 610 018 628 318 647 166 666 583 Extraordinary items it)iy O fe)G Qa Net Margins 4,486,059 §,301,89.6,801 837 7,781,202 8,698,837 linkenart pritiges stesnceee sRacrsaas Achieved Overal TIER 176 185 190 195 130 133 13s Overall Rate Change Required -Current Year 6.57%347%3.91%7.90%2 26%4.73% Overall Rate Change Required -Cumulative (2011 Base Year)657%12 04%19 95%23 85%26 104 27 83% SRF Rate Change (Base Rates Only,No WPCRA)-Current Year 6 68%192%24)OD 63%324.2 50% SRF Rate Change (Base Rates Onty,No WPCRA}-Last Three Years 1)EB 13 62%tog 3 oo%£808,£10% Equity Ratio 41 5%41.7%412%412%19.6%20.2%20.5% 37 Page 1 of 1 :Everything inside the blue dashed lines has been upgraded. : e e e e e t : 'Tank Mixing af:>- r ce I ':Digesting Sludge Digesting Sludge )1s ..H|)it TT TI|Heat Exchanger 8 Anaerobic Digester No.2 Anaerobic Digester No.° l r]:, ,i |; ! \'To WCWD Drying Beds °e I : .e e e3 Ice:oC)6 i] e i] e é LY 000000006 O 0806 OOOO 8 OOS OOS OES H OES OOEE SOO OS OS OOO OSE OEEOOESHODSOOOSESEESOOEESEOOOESE "el ms et et eee Everything inside the red dashed lines needs tobe upgraded,smemememe In order to have redundancy we should install three new boiler/heat exchanger units.There may also be a need to replace some http://waterfacts.net/anaerobic_digesters_lg.jpg 12/14/2011 Page 1 of 1 Everything inside the blue dashed lines has been upgraded. Tank Mixing <a > poe 1 Ds Digesting Sludge Digesting Sludge |13 ..'I}yy Ai bic Digester No.2 Anaerobic Digester No.|tbat exchanges :naerobic Digester No.naerobic Digester No. |rs ,|.Ts!Qo |:,|}To WCWD Drying Beds 1 |Boiler i: ..¢ a 2 a 'e 6 e .6|becccccccccccccscccccccccccccccecccccccccccocecccosencesccccccccccccccescccocccce eeemmm Everything inside the red dashed lines needs tobe upgraded.- -meee In order to have redundancy we should install three new boiler/heat exchanger units.There may also be a need to replace some http://waterfacts.net/anaerobic_digesters_lg.jpg 12/14/2011 Cambined income Stat t Case #2;30%increase in Capital Cost Sates Revenue Other Electne Revenue Operating Revenue and Patronage Caprttat Power Producuon Expense Cost of Purchased Power Transmission Expense Distnbubon Expense -Operatan Orstndubon Expense -18 Consumer Accounts Expense Customer Sennce and infarmatona!Expense Sales Expense Aominstatve and General Expense Total Operation and Mamtenance Expense Depreciation and Amoriizaton Expense Tax Expense «Property and Gross Receipts Tax Expense -Ciner interest on Long-Term Debt interes!Charged to Construction (Credit) interest Expense -Other Otner Deductons Total Coat of Electric Service Patronage Capital and Operating Margins Non-Operating Margins-interestAllowanceforFundsUsedDunng Construction Income (Loss)from Equify Investments Non Operaung Margins -Other Generation and Transmission Capital Credits Otner Capital Credits and Patronage Dandends Extraordinary ttems Net Margins Achieved Overall TIER Overali Rate Change Required -Current Year Overati Rate Change Required -Cumutative (2011 Base Year] SRF Rate Change (Base Rates Only.No WPCRA}-Current Year SRF Rate Change (Base Rates Only.No WPCRA)-Last Three Yea Equity Ratio 2018 2019 2020 2024 148.877.7809 «=157757380 «=-157 150332 180 945.2152,826 873 2552142 2577 663 2603 440 151,404,663 155,309,521 159,727,995 163,548,654 63771 200 65 480 274 67.233 400 69 031,698 2.593.273 2 645,138 2.698.041 2 752 002 36.565 40 752 41974 43.233 3.643.407 3.752 709 3 865 290 2,961,249 4494 495 462934 4768 214 4941261 3742 663 3.854 942 3970591 4.089 708201,776 207.829 214 064 220,486 0 Q 0 0 42619 160 42 997 735 43 387 667 13 789 26791,105,541 93,608,713 96,179,244 98 818.934 23 025.516 23 630 476 24,658,164 25,461,603 416 376 422.622 428 961 435 395 821 744 B46 396 871 788 897 942 26,852,259 26.985,458 2?367 356 27,381,789 (37 907)(38,665)(39 438){40 227) 274 196 293 442 238653 183.772 272 797 229 461 236.366 243,457 142,680.525 146.177,926 149,916,091 183,382,865 g724,137 «9,131,896 9,811,504 10,165.789 593 950 710 07 B16 068 920 292 13784 14 060 14 341 14.628 0 0 °0 (8 398)(86801 (8 909)(9.176) 0 0 0 0 707.177 28 393 750,245 772,782 Q o 0 0 10,030,689 10,575,496 137 139 142 143 168%141%177%1.20% 252%20 93%52 10%33.90% 2 Em 197%730%162% e214 6 ose 64%£90% 218%226%23.6%24.6% 38 Balance Sheet -Distribution Case #2:30%increase in Capital Cost Uhity Plant in Service Construction Work in Progress Total Untty Plant bess Accumulated Provision tor Depreciation and Amonization Net Utdty Piant Other Property and Invesiments Casn Shon.Term Investments Other Current and Accrued Asseis Current and Accrued Assets Deferred Dents Totai Assats Memberships Patronage Capital -Beginning Current Year Capital Crean Retrements Cursent Year Net Margins Otner Margins and Equitres Totat Margins and Equities Gross Long-Term Dett Less Portion Due Within One Year Net Long Term Get Other Non-Current Liabistees Short-Term Line of Credt Current Pomion -Long-Term Debt Crner Current ang Accrued Liapines Currant and Accrued Lisbites Deferred Credits Tota!Liatuites and Equites o 2011 2012 2013 2014 2015 2016 2047 31266980!«330179801 «358315276 «378358270 «=408 74 008 «=440044 408472 283.8206.452 715 6 $81,769 6 713 404 6 647.673 6.984 626 7124319 7.266 605 319122516 --336.761,570 3€1.028.680 «385202943 «15 728634 «=447,168,726 «479,550,625 (123.831 449)(133398670)(143,589.956)1154 496.936)(166 220.000)178.863.260)(192.452 931) 195.291 076 203,362,900 «217.438,724 -«230,708.006 «249 S0E.634 ©268.305 466 ©.287 098.093 21 296.536 21 988 786 22 648 B64 23277122 26 464 149 24 751 760 33.192 347 408 620 417.812 426 168 434692 443 385 452.253 461 298 9 0 0 o 0 6 018,324,134 18,590,616 19,066 429 19.445.717 19 834 632 20,231 324 20.635.951 18 733,754 18 108 420 19.490 597 16 680 409 20.276.017 20 683 578 21,087,249 5.156 257 $257 382 5 362.489 $469.739 $979 133 $.690.716 5 804 530 240478622 «-245,717.456 ©.264 S406 14 301 829,908 347.132.220 -recvezaes srseeezzz zpeeaesczz 239 675 244 4b8 245 357 254 344 259,431 264 620 269,912 92 338 533 55939186 «100.281.78B8 «=105.234677 110.988 167 «417655527 124.889 $30 (882 406)(989.392)(3 002 618)(1 052,347)11109 842)(1.764 633}(1.868 843) 4 486 US9 5.301 993 $955 707 6 801,837 7,781 202 8.696.837 9.338.459 3587 412 3 659,161 3.732.344 3 806.994 3883 131 3 960.783 4.040.009 SG766273 104 165416 «=109.218 37R «=195045502 «121798069 =128814543136 305 068 906.683.449 -132.268971 122.522 184 «132 5E2.334 «-143.556301 «154.678.13188.6 13,652 (5 120.478)(4228 072)(4 383 B46)(7 229.276)17 668 410)(8.408 126)(8 560 312) 791762971 YOR GAD BSG «=78138338 «125333058 «135897 851 «=144270005 «=160.053 40 4.279.022 1253 603 1 278 675 +308 248 4330 333 1 35€940 1384 079 6 137.464 5 020 864 4,295 002 2 342 249 6,494,660 10 368.175 30,967,824 4228072 4383 846 7 229276 7668 410 5 408 126 8 $60 31214663210149564751525560415$60 796 15 871 936 16 189 369 D3 G87 tae PUTAS 23 28 827.128 79723 706 3)688 231 35,717,508 12 082.7°8 12 325 392 12 $74 900 12 823 338 +307 808 13:341,40°43,608 229 361629904 33463;S20 BBT 132 20€80,875,622 39 Balance Sheet -Distribution Case #2:30%increase in Capital Cost Unity Piant in Service Construction Work tn Progress. Total Uthty Plant Less Accumulated Provision tor Depreciation and Amorizaton Net Utdity Plant Other Property and Investments Cash Shon-Tarm invesiments Other Current and Accrued Assets Current and Accrued Assets Deterred Debits Total Assets Memberships Patronage Capilat -Begmang Currant Year Capital Cred Retirements. Current 'Year Net Margins Other Margins and Equites Tota!Margins and Equities Gross Long-Term Dept Less:Portion Due Wann One Year Net Long-Term Deot Other Non-Curent Liabines Short-Term Line of Cred Current Porton -Long-Term Debt Otner Current ang Accrued Liabiites Curent ang Accrued Liatuites Oefenea Creaas Total Liabimes and Equities 2018 2019 2026 2021 $00,570 919 $33 506 941 563,516 724 $594 426 801 TAt2,141 7 S60 384 7,713,$92 7,885 823 $07,983,060 541.067 325 571.228 316 602.292 624 (206.946 760)=(222.359.606)=(238.717.003)(255 991 509) 301,036 300 318 707,719 332.511.313 346,301 115 36 597 490 46 138 064 43 744.159 47 405 038 470.524 479 938 489.534 499 324 0 0 [')is) 21,048,670 21,469,643 21,895 036 22,337,017 21 $19 194 21 G85 576 22 388 570 22 636.341 §.926,621 6 039 033 6.159.814 6.283 010 3€5.073 605 386 634 394 404 803 856 422 825,564 =Be =sexceacee =eas 275311 280 817 286 433 292 162 132.059 146 140 108.910 148 82.772 187 740 710 (1,980 887)(2.101.634)(2,228 742)(3.154.814) 10 030 664 1 575 496 11 386 679 13 864 264 4,120 809 4.203 225 4 287 290 4373036 144 505 030 153.066 814 162,314,433 177.116 .977 477 G25 600 192,580,055 202 048 279 208 069 097 (4,207 158){8.537 646}(9.434.220)441.110 988) 472.618 44?184 G47 409 192 814,059 196 958 109 1413 763 1435 996 1468 796 1498 172 V737 665 &746 108 7 350 899 %688 960 4207 156 8 837 646 9 434 220 17:110 988 16.513 156 16 843 420 17 180,288 V?523.694 32 467 9°@ MATT Th 35,965 407 38,523 862 13.680 393 14156 001 14.441 161 16 729 SB4 422 825 50435,073,605 BERS 40 404 603,856 °o Balance Sheet -G&T Case #2:30%increase in Capital Cost Utddty Plantain Service Construcbon Work in Progress Total Utuity Plant Less Accumulated Provision tor Depreciation and Amortization Net Utity Piant Other Property anc investments Cash Short-Term Investments Otner Current and Accruec Assets Current and Accrued Assels Deferred ebits Total Assets Memberstups Patronage Capnal -Beginning Curent Year Caprtal Credit Retirements Current Year Nei Margins Oiner Margins and Equites Total Margins and Equites Gross Long-Term Debt Less Portion Due Winn One Year Net Long-Term Dent Other Non-Current Liabdities Short-Term Line of Creat Curent Partian Long-Term Debt Other Current ang Accrued Liabilities Current and Accrued (iabuibes Deterrea Credits Totat Lrabuities and E ques 2011 2012 2013 2014 2015 2016 2017 0 c f) "9 -326.040000 ©378040000 ©:326,040.00000000©0 r G ry 0 326040000 326040000 326,040 000 0 o ry 0 (10.324,600)--(20.648.200)---(30.973.800) 0 0 9 GQ 318715400 305300800 295 066 200 C 0 ry fo)0 0 o 0 0 0 ry)50.000 50,000 50.000 0 0 0 )6,640,659 13,061,884 19,186,213 G ')0 0 6 °0 ry 0 0 a 6 690.659 13 411,684 19 236 213 0 0 0 0 °° 8 322 406.059 0 ¢0 8 100 100 400 ¢Q 0 0 0 2736 830 5 560 BES c 0 6 0 0 Py a 0 0 0 0 2.739.830 2 621.059 2 694,067 G 9 6 0 Py 0 a c 0 6 r 2739930 5 560 989 8.454 935 ¢0 0 O 319.665129 «312.941.6905 905,847,417 c 9 0 0 (6724 334)(7 064.278)(7 484 463) t r)a Go S1gearess «=Sah BaT ANT ©298.362,958 6 0 0 o ry a 0 0 c 0 7 0 F)° ¢0 0 r)6.794,434 7094 278 7 484 463 0 °Q G 0 0 0 0 -s Q fa 6724434 7 C94 278 7 464 463 0 o 6 0 0 0 0 - 0 °314,302 413 41 318 S02 654 0 Balance Sheet -G&T Case #2.30%increase in Capital Cost Uulty Plant in Service Construction Work in Progress Tota!Uvaty Piant Less:Accumulated Provision for Depreciation and Amortization Net Utlity Piant Other Property and investments Cash Snon-Term investments Other Current and Accrued Assets Current and Accrued Assets Deterrec Debits Totm Assets Memberships Patronage Capital -Beginning Current Year Capital Credit Retrements Curtent Yee Net Margins Other Margins and Equites Total Margins anc Equites Gross Long-Term Oebtt Less:Porton Due Viithin One Year Net Long-Term Dent Other Non-Current Liabilities Shon-Term Line of Creait Current Portion -Long-Term Debt Otner Current and Accrued Liabilities Curent anc Accrued tiabites Deferred Credits Tota!Liabehes ang Equites o 2018 2019 2020 2021 3276040000 326040006 ©3268 040000 ©376 040 0000ry00 326040000 326640000 ©328.640000 +=326 040 000 {41.298 400)(51623000)(61947600)«(72.272 200) 284741600 274417000 284.092 400 953.767 800 t)0 °0 56.000 50 000 50 000 $0 000 24,984,315 30,424,687 35,475,044 40,099,204 0 0 °0 25 034.315 "SC 474 987 35 525 Od 40 146 204 0 0 0 0 304 691 987 100 100 100 100 8 454 895 41412 861 14 425.042 47 480 893 0 0 0 o 2.957 965 3.012 161 3,055,851 3.086 127 a 4 ry ry 17-412 963 14 425 142 77.460 $53 20 568 119 298.362.904 P80.46€B46 =782.136.451.273 347 885(7 896 109)(8 330 395){8 768 566)(9.271 937) 290466626 262136451 «279476858 «=264 OTS BAT 0 0 o ° 9 °0 0 7 896 109 8 330 395 8 788 566 9271 937 0 o 0 0 7 696.109 6 230 395 8 786 566 $271 937 ©6 0 0 309775915 30aea'96>«=294617 aaa 42 Combined Balance Sheat Case #2 30%increase m Capital Cast Utuity Plant m Sennce Constructon Work in Progress Total Ubhty Plant tess.Accumulated Provision for Deprea@ation and Amortization Net Uttty Plant Other Property and investments Casn Short-Term investments Other Current and Accrued Assets Current ang Accrued Assets Oetered Debits Total Assets Membersnips. Patronage Capial -Seginning Current Year Capital Creat Retirements Current Year Net Margins Other Margins and Equities Total Margins end Equites Gross Long-Term Dabt Less Portion Due Within One Year Net Long.Term Ded? Other Non-Current Liabilities, Short.Term.Line of Credit Current Porton -Long Term Debt Otner Curent and Accrued Liabiibes Current and Accrued Liatiibes Deferred Crearts Total Liabdibes and Equities 0 2011 2012 2013 2014 2046 2016 2017 312669601 330778801 ©354.315.2768 «378355270 «=738.764008 «=766084408 «798 323.82064527156581769671340868476736084.626 7.174 319 7.266.805 319122516 ©336,761570 -367,028680 «385202863 «741.768.6834 «=7739.208728 «805.590 625 (123 831.440)(133 398670)(143 589.956)154.496.936)(276,544.600)(199.512 460)1223.426.331) 198 291076 «203362900217 4368724 «230708008 «=565224034 «=BTRGIGZSE «SZ 164 293 21 296 536 2)988 786 22 648.804 23,277 122 23,724,269 24.196 672 24 677,452 409.620 417,842 426 168 434692 493,386 502,253 511.208 0 9 0 0 6.640.659 13,061 884 19,186,213 16.324 134 18 690.618 19.064 429 19.445.717 19 834 632 20.231 324 20 635.951 18739754 19 108 429 39.490 $97 19 880 409 26.866 676 33795 461 40 333 462 $154 287 5 257 342 5 362 4n9 5 469,739 5,879 133 5,800,716 240475622 «249717 456 «=264940674 «=279353276 ©21.49H 133 «373.318 :te zere puszeuess :ae =- 236.678 244 466 249 357 254.344 289531 264 720 270 012 92 335.539 95939186 100 281 7B =105230677 110.988 167117658527 124.569.530(882,406)(956,392)(1,002 818)(1062 347)(1 109,842)(1,764,833)(1,868 843) 4 486 059 5 301.963 5.958 707 6 801.837 7 781 202 &698 637 9.338 459 3587.412 3.659,161 3,732 344 3.808 681 3883 13%3.960.793 4040 003$9 766273 104185416 799.218 378 =178.0a5502 -«121.758.189 ©128815043 «136 369 168 WS BRR AAE «=«117 6A STI «122522184 12 SETS34 -4E2.232430 -407.616.828 -474,46*069 (5 120 478}14 228 072!(4 363 846)(7229 276)«134.392.844)(12.502 404)16.084.775) WT7E2OT1 «-««TDHOAD ESF «=»«178 138335 «=125333.058 4d 83S S8G «=8S 117 422 «AER ANG 295 1229 022 4252 603 1278675 4.304 248 1330 333 1356 ada 1.384 079 6 137 464 5 026.864 4 396 002 2 342 24%6.494 680 10.368 175 10 967 B24 5 120478 4.228 072 4.383.646 7 229 276 14 392 644 12.502.404 16 046 77514.375 696 14663210 14 956 475 15 255 604 15 560.716 15.871 930 16 189,366 28633 638 23 912 146 23738323 24 827 129 36 446 220 38 742 509 43 201 968 127083798 42.328 382 12 $71 900 12 823,338 13.079 805 43341401 13 608 229 3 621496 13 43 279.333 276 637 373,315 ZAtTER 652 879737 °o Combined Balance Sheet Case #2.30%increase in Capital Cost Unity Plant in Service Construction Work in Progress Total Uulity Piant Less.Accumulated Provision for Depreciation and Amonization Net Ubity Plant Otner Property and investments Cash Shon-Tarm investments Other Current and Accruec Assets Current and Accrued Assets Deferred Debus Tota!Assets Memberships Patronage Capral -Beginning Current Year Capital Cred Retwements Current Yeat Net Margins Other Margins and Equites Total Margins ano Equies Gross Long-Term Debt Less Portion Due Wittun One Year Net Long-Term Debt Otne,Non-Curent Liabites Short-Term Line of Credit Cunent Pomon -Long-Term Debt Otner Current and Accrued Liatuities Current and Accrued Liabutes Deterred Creaits Total Liabiitres anc Equites ° 2018 2019 2020 2021 B20 91%BEN Seb G41 =BG S56 724 ©-«-820 486 B017412143756038477115927665823 834,025,060 867 107325 -«-897,2683°6 ©«=---978 332.624 (246 245.160)1273 982 606){300 664 603)(328 263,709) 565,777800 593128718 596603713 600088415 25.184.625 28 713.022 26 263.267 76,836 019 520 524 529,935 539,534 549.324 24.984 315 30 474.887 35,475.044 40,099,204 21 048.670 21469643 21.896 036 22,337,017 46 553 508 52 474 565 87 913613 62 985 548 5.926621 6039 033 6 156.814 6 283 010 653 436 659 77301339 «©686040407 §«=-6 96 173.489 areas 280 917 286 539 292 762 132059146 140 108 910 148 582.772 157,740,710 (1,980,687)(2.101 634)(2,228,742)(3 154,814) 19.030 684 10 575,496 11,386 678 11 864.284 4 120 809 4 203.225 4 287 290 4.373.036 744505730 183086914 ©162.314533 0 174415.477 475.388554 483046901 484.164.7390 481 416.982 (12 103 266)(16 868.041)18.222.786)«#20 382.925) 463,285 268 466.178.860 «-4G5 GST O4A ©461.034.057 VATL 64 1439 996 1,468 766 1.498 172 13,737,665 8 746 108 7 350.899 $886.980 12-103 266 16 668 041 18 222 786 26 302,925 96 813 156 16 B43 420 17 160.288 17523.894 40 354 086 42 457 568 42753 873 a7 795,798 13 B86 393 44 158 001 14441164 14 720.984 662.436 659 686940407 696 173 485 Breseate: ay Case #2 2015 2016 2017 2018 2019 2020 20241 Capital investment 326.040 000 0 eoooedNijet instalied Capacity of New Plant (kW) 162 222 162,222 162.222 162,222 162.222 162 222 162 222 Estmated Energy Reqd from Ektuina Wartsda Plant 714.974 628 726.920 248 739,045,051 781,381,727 763 843.003 776 521 648 789 390.473 versreerscesss**ESTIMATED BUSBAR COST OF NEW EKLUTNA PLANT ***"Tose eterea e.4 Cost of New Cost of New Vanable Required Projeced Ektutna Power Ektutna PowerinterestDepreciationO&M Fuel Cost Margins Cost {$MWh){MkWh) 17 932 200 10.324 .600 7 950 518 50.787 451 2.689 830 89.684 599 $125.4 $0.12544 17,581,637 10,324,600 8,164 1E7 52,152,355 2.637 246 90 860.025 $125.0 $0.12499 17.241,793 10,324,600 6.383 366 $3 $82 463 2.581.769 92 053 992 $1246 $0.12456 16,821 608 10,324 600 8 608,197 54.988 668 2.523.241 93.266,314 $124.1 $0.12413 16 405 962 10.324 600 8 838 822 $6 461 887 2.461 494 94 496 766 $123.7 $0.42371 15.975.677 $0 324,600 9,075 388 §7,973 060 2 396,351 95 745.077 $123.3 $0 42330 15.517 505 10.324 600 9.313.047 59 $23 181 2 327 626 97 010 929 $122.9 $0.12285 45 Case #3 40%Increase in Capital Cost 46 Case #3 40%Increase in Capital Cost 46 Retail Rate Projection (sewn) Sales Revenue per kWh Sold (Annualized) Cost of Power Projection (Sewn) Source Chugach Electric Association,Inc. (includes assigned hydro) New Eklutna Generating Plant Bradley Lake Hydro Ekiutna Hydra Overall Case #3:40%Increase in Capital Cost 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 0.1490 0.1617 01669 0.1727 0.1874 01907 0.1932 01956 0.1976 02002 02019 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 0.09549 009836 0.10131 0.10435 012877 0.12823 0.12769 012717 0.12665 0.12614 0 12564 004492 004582 004674 004767 004862 004960 0.05059 000591 000609 000627 000646 000665 000685 000706 0.11887 0.11860 0.41833 0.11806 011780 0.11753 0.11727 47 + income Statement -Distribution Case #3:40%increase in Capital Cost Salas Revenue Other Electne Revenue Operating Revenue and Patronage Capital Power Production Eapense Cost of Purchased Power Transmission Expense Disinbution Expense -Operaton Castnbuton Expense -Maintenance Cansumer Accounts Expense Customer Service and Informauonal Expense Sales Expense Administrative and General Expense Total Operation and Maintenance Expense Depreciation and Amortization Expense Tax Expense -Property anc Gross Receipts Tax Expense -Other Interest on Long-Term Dent laterest Charged to Construction (Croat) interes!Expense -Other Otner Deductions Total Cost of Electric Service Patronage Capital and Operating Margins Non-Operating Margins -Interest Allowance for Funds Used During Construction income (Loss)from Equity tnvestmenis Nor,Operating Margins -Other Generation and Transmission Capital Credits Other Capital Creaits and Patronage Dividends Extraordinary Items Net Margins TiER Target Achieved TIER Overall Rate Change Required -Current Year Overall Rate Change Required -Cumulative (2011 Base Year} SRF Rate Change (Base Rates Only.No WPCRA)-Current Yoar SRF Rate Change (Base Rates Only,No WPCRA)-Last Three Years Moditred Debt Service Coverage Ratio -Current Year Modified Debt Service Coverage Ratio -Best 2 of 3 Years Equity Ratio 2 2012 2013 2014 2015.2016 2017 103,570,177 114130400 148,845.345 =-175570,768 «=138.311.416 =-142.841,727 -:146,878.175 2 356.860 2 380,425 2 404.233 2.428 275 2.452.558 2477 084 2.501.854 105,927,037 116,510,829 «121,949,578 -«127,999.043 -«140,763.974 ©145,318.810 149,381,029 0 0 0 0 0 0 ° 66 445 308 74 906 320 78.310 613 81870039 94.668 349 95 866.423 97,082,454 33.450 34.119 34,801 35,497 36.207 37,294 38.412 3.080.316 3,141 922 3.204.761 3 268 856 3334 233 3 434 260 3.537.286 3 799.872 4875 869 3953.38?4032 455 4.143.104 4.236.497 4363 5923,164,232 3227517 3,292 067 4,357,908 3,625,068 3527818 3.633.653 170 594 174 003 177 483 181 033 184.653 190,183 195,899 0 0 0 0 0 °Q 10.668 862 40,682,239 11,099 884 13.321 Ba2 41$48 319 11,894 769 12,251,612 87,362,631 96,241,990 100,073.196 -104.067.670 ©117.309.932-119.187.254 -121,102.910 7,790 000 8383 516 6 930 360 §557 SOA 10272 618 14078 962 ¥1 907.927 387.658 386 793 348,505 392 303 398 187 404.160 410.223 694.743 708 638 722.811 737 267 752.642 774573 797 B10 5.923.305 6.237,639 6617-452 7 159.828 7.781 202 8 698.637 9,338 459(33.000)(33 660)(34.333)(35 029)(36.720)(36 435)(37 163) 250 123 483 437 525,822 109 875 58,556 167,539 269,703166.364 192.101 195,974 399 893 203 891 210 008 216 308102,523,824 -112.266.485 ©117,017,486 ©422.189.321 -«136,.740.678 «140,484,898 ©144,006.1773,403,213 246 34d 4,932,092 $809,722 4,023,296 4,833,913 374.852 152.692 156 192 158 356 158 $23 156 694 158 868 159.04512.000 42 240 12 485 12734 12 989 13 248 13 544 0 0 0 o °3 0 (6 828)17033}(7.244)(7.461)(7 6e5)(7,916)(8,583) 349 982 300 060 250.000 200 000 2 966 740 3034 140 3412621575000592250€10 018 628 318 647 168 666.563 666.580 0 0 0 ° $301,993 6,801,837 4.76 185 190 1.95 2.00 2.00 2.00 1.76 185 1.90 195 2.00 2.00 2.00 857%347%394%9.88%2.20%167% 6 57%12 04%15.95%25 82%28 02%29.70% foape 100%74aty G 89%233%25k 1 DB 14 02%)121%343%485%496% 1757 3683 1974 1983 1498 1526 1 B3C 1.839 1.952 1.952 1.754 41678 41.5%41.7%412%41.2%40.9%39.7%39.2% 4g Oo income Statement -Distribution Case 83:40%increase in Capital Cost Sales Revenue Other Electnc Revenue Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Transmission Expense Disinbution Expense -Operation Oisinbution Expense -Maintenance Consumer Accounts Expense Customer Sernce and informatonai Expanse Sates Expense Admunistratve and General Expense Tota!Operation and Maintenance Expense Depreciation and Amortization Expense Tax Expense -Propeny and Gross Receipis Tax Expense -Other Interest on Long-Term Debt interest Charged to Construction (Creat) interest Expense -Other Otner Deductions Total Cost of Electric Service Patronage Capital and Operating Margins Non-Operaung Margins -Interest Allowance for Funds Used During Construction Income (Loss)from Equity lnvesiments Non Operating Margins -Other Generation and Transmssion Capitat Creaits Other Capital Credits and Patronage Diwidends Extrsordnary Items Net Margins TIER Target Achieved TIER Overatt Rate Change Required -Current Year Overat!Rate Change Required -Cumulative (2011 Base Year) SRF Rate Cnange (Base Rates Only,No WPCRA)-Current Year SRF Rate Change (Base Rates Only,No WPCRA)-Last Three Yea Moditied Debt Service Coverage Ratio -Current Year Modified Debt Service Coverage Ratio -Best 2 of 3 Years Equity Ratio 2018 2019 2020 2021 150.952$65 154797239 «189 154 187 162 811911 2.526 873 2.952 142 2577 663 2.603 440 153,479,438 157,349,381 «161,731,850 165,515,350 6 °0 0 98 316 187 99 667 319 100 835 502 102 120 33339,565 40,782 41,974 43,233 3.643 407 3752 709 3 865.290 3981 249449449946293344.768 214 4 944,264 3.742 663 3,854,942 3,970,591 4,089 708201,776 207 829 214,064 220.486 0 0 0 fy42,615,160 12,997,735 13,387,667 13.789,297 123,057,256 125,050,620 «127,083,302 «129,155.567 12,700 $18 13 505.878 14,333 564 1§,137.203 446 376 422 622 428 961 435 395 821 744 846 396 &71,788 897 942 10.030 651 10 $75 496 14,386.679 11 864.264 137 907)(38 665)139 438)(40 227) 290 16)314 993 245 693 216.783 222 797 279 481 236 366 243 457 447,501,996 150,906.822 ©184.547.116 --457,810,404 $977,442 6442553 7,188,734 7,604,946 159 226 150410 759,599 159,791 +3 784 14 060 14 344 34628 9 0 0 0 (8 398)18 650)18 909)(5 176) 3.181 420 3.239 724 3.266.670 3321 343 OF VT 728 393 750.245 772 72 6 0 6 0 30,030,654 scaszsees 2.00 200 200 200 2.00 2.00 2.06 200 163%1.35%172%114% 31.32%37 68'34 40%35 54% 2 39%tae 240%Vem 8 24%6 8B.6 77%601% 1564 2 08%1670 1642 1697 +959 1.879 1.879 39.5%39 5%40.0%40.3% 49 income Statement -G&T Case #3:40%Increase in Capnal Cost Sales Revenue Otner Eiectnc Revenue Operating Revenue and Patronage Caprtal Power Production Expense Cost of Purcnasec Power Transmission Expense Oisinoution Expense -Operation Oisinouton Expense -Mamtenance Consumer Accounts Expense Customer Sennce afd informatona!Expense Sales Expense Agminstratve ang Genera!Expense Total Operation and Maintenance Expense Qepreciauon and Amoruzation Eapense Tax Expense -Propeny and Gross Rece.pts Tax Expense -Oiner interest on Long-Term Ded? Interest Charged tc Construction (Credit) interes!Expense -Other Other Deductions Total Cost af Electric Service Patronage Capital and Operating Margins fon Operating Margins -interes! Allowance for Funds Used Dunng Construction Income (Loss)from Equity investments Nor.Operating Margins -Other Generapon ano Transmission Capilai Creaits Other Caprtai Credits anc Patronage Dividenas. Extraordinary lterms Net Margins Operating TIER Target Achieved Overall TER Equity Ratio 2011 2012 2013 2014 2015 2016 2017 °t)0 0 64,668,349 9 866.423 97 062 4586000300 r)ry ry °94,668,349 95,866,423 97,082.454 6 0 0 )58 897.516 60,480.669 62,105,086 6 0 0 0 2.443 695 2 492.573 2542474 0 ¢0 0 0 0 0 0 Q 0 0 0 0 a 6 G 0 0 9 0 0 0 0 Q 0 o Q 0 0 6 9 0 0 0 9 0 0 Py 0 °0 D 0 0 °0 0 6 0 0 r)0 61,341,209 62,973,442 64,647,511 0 fy 9 c 11,198 800 11.116.800 19.118 800 o 3 0 0 0 3 6 0 9 0 0 0 ry r) 0 0 Q 6 19.341.600 18934074 18 $38 777 0 0 6 0 0 0 0 0 Q 0 0 0 4 ° 6 0 G 0 0 8 P 0 0 °ri 91,371,609 93,026,313 94,302,068 "9 _-_0 0 2,896,740 2,840,111 2,780,367 0 9 G 0 50 000 794 029 332 254 c 0 9 0 0 0 c 0 6 0 0 0 °c ¢6 0 °")6 a c 0 0 °0 ©9 G 0 0 ry 9 6 ° 0 0 0 i 0 e 6 0 0 ry a 3.492.621 ceeeunzas :sea ::prsscrarc 9 00 000 000 00 115 115 145 eco 000 000 00 415 116 wt 00%00%00%00%08%4.7%27% 50 income Statement -G&T Case 83:40%incraase in Capitai Cost 2018 2018 2020 2021 Sales Revenue 968 316 167 1)567.318 100 635 502 102 120 333 Otner Electnc Revenue 0 is)te)is) Operating Revenue and Patronage Capital ©96.316,187 99,567,319 400,635,502 102,120,333 Power Producton Eapense 63.771,200 65 480 274 67.233 400 69.031 698 Cost of Purchased Power 2.593.273 2 645 138 2.696.041 2752 002 Transmission Expense i)a Q 0 Distribution Expense -Operation °fd (+)[*} Distnbution Expense -Maintenance (°)[*)f)ie) Consumer Accounts Expense is)(e]0 i} Customer Sernce and informational Expense (¢)[*)i¢][*] Sales Expense G ic)tC)0 Adminstatve and Genera:Expense co [')oO 0 Total Operation and Maintenance Expense 66,364,472 68,125,452 69,931,441 71,783,700 Depreciation and Amortization Expense 11116 600 '14 -916,800 11 118,800 14,118 BOD Tax Expense -Property and Gross Receipts oO °is)f+) Tax Expense +Other is}i')it)0 interestonLong-Term Debi 18.115,578 17,672,267 1?204,575 16 714,159 Interest Chargec to Construction (Credit).Qo 0 ig i} interest Expense -Other ie)QO o 0 Other Deductions.()°9 ° Total Gost of Electric Service 95,898,850 96,916,479 98,254,816 99,613,659 Patronage Capital and Operating Margins "B77 337 "2.650.840 2.580.686 2,506,674 Non-Operating Margins -Interest 464 063 568 883 814 666 Allowance for Funds Useo Dunng Consructon is} incorne (Loss)from Equity Invesiments (e] Non Operaung Margins -Other a Generator and Transmission Capstai Credis i Other Capaai Credis and Patronage Dividends o Extraorainary tems o Net Margins 3,239,724 Operating TIER Target 115 148 115 115 Achieved Overall TIER . 118 148 118 $20 Equity Ratio 37%4a™S8%70% 51 Cc bined fi Shar,¢ Case &3°40%increase in Capital Cost Satus Revenue Otner Etectne Revenue Operating Revenue and Patronage Capital Power Praducton Expense Cost of Purchased Power Transmission Expense Distribution Expense -Operaton Distribution Expense -Maintenance Consumer Accounts Expense Customer Sennce and Intormatonal Expense Sates Expense Adminstratwe and General Expense Totat Operation and Maintenance Expense Dapreciabon ana Amortization Expense Tax Expense -Froperty and Gross Receipts Tax Expense -Otner interest on Long-Term Debt Interest Charged to Constructon (Credit) interest Expense -Other Otner Deductons Total Cost of Electric Service Patronage Capital and Operating Margins Non-Operating Margins -Interest Allowance fo Funds Used Dunng Construction Income (Loss)trom Equity invesiments Non Operating Margins -Otner Genetauon ano Tranamisseon Capital Credits Other Capital Credits and Patronage Dwiaends Extraordinary tems Net Margins Achieved Overall TIER Overall Rate Change Required -Current Year . Overall Rate Change Required -Cumutative (2011 Base Year| SRF Rate Change {Base Rates Onty.No WPCRA)-Current Year SRF Rate Change (Base Rates Only,No WPCRA)-Last Three Years Equity Ratio 2094 2012 2013 2014 2018 2016 2087 ¥O3§70,177 «114 130.400 149.545.345 -125 570768 «=138311416 «=142:BA1.727 148 .870.1752.356 860 2 360 429 2 464.233 2,426 2/5 2 452.558 2.477 084 2.501 BS4 105.927,037 -116.510,829 -«-429,949.578 «127,999,043 «$40,763,974 145,398,810 «149,381,029 °c)fy 0 $8 897 $10 60 480,869 62 105,086 66 445 308 74 906.320 74310813 81.870.939 2,443,699 2.492.573 2.542.426 23.450 34419 34801 38 497 36 207 37 200 38.412 3.080 316 3141,922 3204 761 3.2668 855 3.334 233 3.434.260 3537 288 3.799.872 3875 669 3 953.387 4.032.455 4193 106 4 236.497 4,363,592 43164 232 3.227.517 3.267.067 3.357 908 3 425.066 3.627.818 3.633 653 170,591 174,003 177.483 181,033 164.653 190,193 195 89600000°01066886240B822391109688441.321 882 41.548 319 11894 769 42.251 612 87,362,631 96,241,990 100,073,196 104,067,670 83,962,792 86,294,273 88,667,966 7 70 000 8 363,518 8 930,360 @ 557 504 21391456 22 107 762 23.026.727 347.658 380,793 366.505 392,303 398,187 404,160 410.223 Boe 743 708 638 722.811 737 267 752 012 174573 797.210 5,923 305 6 227.639 6 617.452 7.189 828 27,092 802 27 632 907 27 874.236 (33 000)(33,660)(34,333){35,020}(38,720)(36.435)(37 163) 250 123 193.437 925 52?109.875 58 556 167.539 265 704188364192.134 195.974 199 893 203 691 210 008 216 308 102,523,824 112,264,485 «197,097,486 422.185,321 «139,849,938 «137,644,767 -«-141,228.810 3,403,213 4.246.346 4,932,092 5,809,722 6,920,036 7,674,023 8,155,218 152662 «NSH 1G2 158 356 188 523 208,694 357 BS7 451 29912000122404248512734°2 988 33.249 13544 4 0 0 0 0 0 0 (6,828)(7033)(7,244)(7,461)(7.685)(7,916)(8,983) 34S 982 200 000 256 000 200 000 9 ¢°575 000 592.2 610.018 628 318 647 168 666 583 686 58000000D0 4,486,059 $.301,993 $.955.707 6.801.837 7,784,202 8,698,837 176 185 199 195 129 13 1M 857%347%391%988%220%167% ESN 12 04%15 95%25 B>%28 02%29.70% 66%$2%24%0 BG 339%281% Ve 2b "aOR rs Va".anew aE ay 8%417%41 2%412%18.8%19.5%20.1% 52 °o Combined income Stat t Case &3:40%fncrease in Capital Cost Sales Revenve Other Electne Revenue Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Transmission Expense Oistribubon Expense -Operation Oistrbution Expense -Maintenance Consumer Accounts Expense Customer Senice and Informational Expense Sales Expense Admmustravve and Genera!Expense Total Operation and Maintenance Exponse Depreciation and Amortization Expense Tax Expense -Property and Gross Receipts Tax Expense -Otner Interest on Long-Term Deo! interest Charges to Construction (Credit) interest Expense -Omer Other Deductions Total Cost of Electne Service F ge Capitaland Operating Margi Non-Operatag Margins -interest Allowance tor Funds Used Dunng Const uctonincome(oss)from Equity Investments Non Operating Margins -Other Generation and Transmission Capital Credits Otner Capital Credits ana Patronage Divitends Extraoramnaiy tems Net Margins Achieved Overall TIER Overall Rate Change Required -Currem Year Overat!Rate Change Required -Cumulative (2011 Base Year} SRF Rate Change (Base Rates Only,No WPCRA}-Current Year SRF Rate Change (Base Rates Only.No WPCRA|-Last Three Yea Equrty Ratio 2018 2019 2020 2021 190,992,565 184.797 239 159.154 187 462.914.9011252687325521422.577.663 2603 440 153,479,438 157,349,381 164,731,850 --165.515.350 63771 200 65,490 274 67 233,400 69,031,698 2,593 273 2 645 138 2 698.041 2 752,002 39.565 40 752 41.974 43.2333,643,407 3.752,709 3 865,290 381 249 4494 499 8 624 334 4768 214 4911261 3.742.663 3.854 942 3970591 4,089,708 201.776 207.829 214,064 220.486 9 o 0 012.619.160 12,997,735 43.387 667 13,789,297 91,105,844 93,608,713 96,179,248 98,818,934 23,818,716 24,624 678 26 652,364 26 256 003 416 376 422.622 428 961 435.305 821 74a 846.396 873 788 897 942 28,146 229 28 247 763 28.891 254 28 575443 27 907){38 665){39,438}(40,227) 290 161 314 964 245 B93 216 783 222 787 229 463 236 366 243 457 144,784,660 $48,255,982 151.966.429 --158.403,730 8.694.778 9,093,399 9,765,420 10,111,620 623 309 7aB 264 865 583 974 460 33784 14 060 14341 14 628 0 0 9 ° {6 398)(8.65C)(6.909)(9,176} Q 0 0 0 OT 177 #28 393 750.245 772.752 C [3)0 ie] 10,030,654 11,864,284 136 tar 140 142 163%135%1.72%11th 31 32%37 68%34 40%36 5st 2 oo 196%2 40%163% Bisa €Be Laan Gorm, 21.0%21.8%229%23.8% 53 Balance Sheet -Distribution Case 43°40%increase in Capitat Cost AStiity Plant mn Senice Construction Work in Progress Total Unity Plant Less:Accumulated Provision tor Depreciation and Amoniatior Net Unlity Plant Other Property and Investments, Cash Shon-Term Investments Otnes Current and Accrued Assets Current and Accrued Assets Deterted Debits Total Assets tdemberships Patronage Capita!-Beginning Current Year Capital Cred Retraments Current Year Net Margins Olhe:Margins and Equites Tota!Margins and Equities Gross Long-Term Debt Less Porton Due Wenn One Year Net Long-Term Debt Otner Non-Current Liabutes Short-Term Line of Creat Current Porton -Long Term Debt Other Current and Accrued Liabiihes Curent and Accrued Liabihtes Detered Credits Tota!Liatshtes and Equitas. 2014 2012 2013 2014 2015 2016 2017 31266980!330179801 «354.315.2786 «=378355270 ©08 744.008 «=440084 408 =472 285.8206.452 795 6581 769 6 713 404 6 847 673 6.984.626 7 124.319 7,266 808 319,122,516 336,761,570 361,028,680 «385,202.43 4 15,728.634 47,168,726 478,$50.625 (123831440)1133-398.670)(143 589.956)(154.496.936)(166 220000)(178 863,260)(192 452.531) 195,.291.076 ©203.38290G «-217.438724 -«-230708006 «=25508634 ©=-268.505.4868 ©2287 098.093 21.296 536 21 988 786 22 646 B04 23.277 122 26.671 029 30171 752 33 770.953 409 620 417 812 426 168 434 692 443,386 452.253 461,298 9 0 0 ry 0 c 0 18 324 134 18 690 616 19 064 429 19.445 717 15 834 632 20.231 324 20,635 951 18,733,154 19,106,429 18,490,597 15,880,409 20,278,017 20,689,578 21 097.249 5.164.257 §.287 342 5 362.489 5 469 739 §$79 133 5.690.716 5.804.530 245.717.4586 =264,940,614 «279.333.2768 «=302038814 =324 851.512 «347:770.826 aa :paaeszass wereez reogeazes paaraeene 239,675 264,468 249,357 254,344 259.431 264.620 265,912 92.335 $33 95.939 186 100.284.7868 =105 234677 «190484 167 «117 855.27 124.$89 S30 (882.406)(959 392}(1002 818){1 052 347)(1 109 842)(1,764 833)(1 866 843)4,486,089 5,301,993 5,955,707 6,801,837 7,784,202 8,698,837 9.338 459 3.887 492 3659 161 3732344 3 806 991 3883 131 3,960 793 4040 C09 99.765 773 104185416 105716378 195065502 121758089 178814643 136 369.068 196883449 «157.268971 122.522 184 132.862334 «143.66301 «154.678 131 168,613,652 (5 120 478)(4 226 072}(4383 848)t7 229 276)(7 668 410)(5 408 +28)18 $60 312)301762971 «=108 OO BSS «=118138356 «=228.3330SA 138857891 «=149 270008 +=160.053 bad +229.022 1253 603 1278675 +304 248 1330 333 1.358 940 +384 079 6.137 464 5,920,864 4,395,002 2 342,249 6.701.570 10 788,166 11,606.429 5 120 476 4 228 072 4 383 646 7 225 276 7 668 410 §408 126 8 560 31244.375 696 14 663.210 14 956 475 15 258 604 15,560,716 +5 871.930 16 185 369 25 633 638 23 ¥te 146 23735323 924 827 129 79 930.696 32 066 223 36 396 110 42.083,798 12.571 900 12 823 338 13 078.805 13 sav ays 13 608 229 264 $40 614 324 BS1 512 34?770 826 54 30?036 E14 reas Balance Sheet -Distribution Case 83.40%increase in Capita!Cost Uulty Plant in Senice Constructron Work in Progress Total Unity Plant Less Accumulated Provision for Depreciation and Amortization Net Ututty Plant Other Property and Invasiments Cash Shon-Term Investments Otnet Current ang Accrued Assets. Curent and Accrued Assets Deterrad Debts Total Assels Memberships Patronage Capral -Seginning Curent Year Capital Credit Retirements Current Year Net Margins Otner Margins ang Equies Total Margins and Equites Gress Long-Term Dent Less Portion Due Within One Year Net Long-Term Debt Orne:Non-Current Liablites Short-Term Line of Creat Current Portion -Long Term Debt Other Current and Accrued Liabilities Current ang Accrued Liabities Oceterred Creats Total Liaddthes and Equines 2018 2019 2020 2021 500570919 $33506941 563516774 594426 801 7412 141 7 560,384 1714 592 7 865 823 507,863,060 ©S41.067,.325 ©«571,228,516 602.792 624 (206,946 760)(222389606)(238717003)1258.967.509) 301036300 318767719 332.531.3139 «346 307,115 37 459 $50 41 227 666 45.064 $81 48 958 676 470 $24 479.535 489,534 499 324 0 0 c 0 21048 670 21 465.643 21.895.036 22 337,017 21 519,198 23 949 576 22,388,570 22 836 344 5.920 621 6 039.033 6.189 814 6 283 010 365,935,665 38752259 4058-24277 ga 379 142 ::::::easres 275,311 260.817 266,433 292,162 422.055 146 140108910 148 582-77 187 740 710 (1 960 887)(2.103 634)(2 226 742)(3.154 814) 10,030,651 10,575,496 11 386.679 11,864,284 4.120 809 4.203 225 4287 250 4373 036 744505030 153066814 182334433 971118377 177025600 197 S86.08 202646279 208,089.097 (4.207 158)(8.537 646)(9 434220)(31.110 988) W7z818442 ©1640424609 «=182614059 «=:196.958 109 1.445 761 1 43%996 1.468 796 1.498,172 42,599 725 9.838 710 8,671,320 11 447618 4.207.158 6 537 646 3 434 220 14-110 98216.$13,156 16 643 420 47 180.268 17 $23 694 33320 039 35 216 776 35 285 B28 40 077 500 13,680 393 14166 051 14441 161 18729 984 465 935 665 474.379 14? 55 496 124 277 Balance Sheet -G&T Case #3:40%increase in Capital Cost 2014 2012 2013 2014 2015 2016 2017 Utlty Plant in Service t)Cy 0 ©354120000 ©353.120.000-381.170000ConstructonWorkinProgressooO0Le)ts}ty i2} Tota!Utility Plant G G 0 0 381,120,000 357.120.6000 35%120,000 Less.Accumulated Prowsion for Deprecation and Amortization Q 0 Oo a (94,118 800){22 237 600)(33 356,400) Net Unity Piant .ie)Q it)[e)340,001 200 328 862 406 317 763,600 Other Property and investments °0 Q ie]6 fe)Pj Cash 6 Q 9 ie)5.000 50 000 $0 000 Short-Term invesiments °is)9 [}TASTY ATI 14,062,743 20,654,143 Other Current ang Accrued Assets if]Q it)ie)ic 0 a Current and Accrued Assets 6 i}te)Q 7 207.473 14 142.713 20.704 143 Deferred Debus i a o 0 oO o Total Assets Q i]Oo 947,262 671 342 995 113 338.467 74 sezeraers nPaiseess setausies ees a zee ss Memberships [°)i)te)fey 100 100 100 Patronage Caprtai -Beginning o (3)9 o i}2.946 740 5.980.866 Current Year Capuial Credit Retrements is)o (]Q 9 0 i) current Year Net Margins is}ie}te}oO 2.946.740 3034 140 3,412,621 Other Margins and Equities it]is)0 oO ig a ij Tota!Margins and Equines.ie}Cc oO 0 2,346 540 $986.980 9.093.601 Gross Long-Term Debt o ia)[+]ig 344,255,831 W133 329,374 142 Less:Pornon Due Within One Year 6 a i)0 U7 241 698){7,639,991}(8,060,191) Net Long-Term Dept °o i)i]oO 337 014.133 328.374 142 324,343,951 Other Non-Current Liabiltes 9 G t)is]6 [)[e) Short-Term Line of Credit 0 i?)i)G iY)ie}is} Current Portion -Long-Term Debt te)ij c o 7 241,698 7 639,991 8 060 {ST Other Current and Accrued Liabiihes is]6 i i)9 a ° Current and Accrued Liahiines eG ¢o 7 241.658 7639 961 8 060 191 Deterred Credits oO e [s)o is}0 iy Tota!Lathes and Equites 0 a . 0 0 342 995 113 338.467 743 56 °o Balance Sheet -G&T Case #3:40%increase in Capital Cost Utility Plant in Sernce Construction Work in Progress Total Uvirty Plant Less'Accumuiated Provision for Depreciation and Amorhizabon Net Utiity Prant Other Property and investments Casn Short-Term investments Otner Current and Accrued Assets Current and Accrued Assels Deferred Debits Total Assets Memberstups Patronage Capital -Beginning Currert Year Caprtat Creont Retrements Curren!Yaar Net Margins, Other Margins and Equites Tota!Margins ang Equites Gross Long-Term Deb! Less.Porton Due Wittun One Year Net Long-Term Debt Otner Non-Current Liadeines Snort.Term Line of Creat Current Portion -Long-Term Debt Other Current and Accrued Liabiities Current ang Accrued (iabiites Deterred Credits Tota:Liatuities and Equives 2018 2019 2020 2021 351120000 387120000 ©381120006 «=-351.120000000) 351,120000 351120000 ©381120000 ©3581.120.000 (44.475.200)(55.594.000)«66.712 800)--«(77 831.600) 306 644.860 95526000 =284.407.200 --:273.288 400 0 °0 0 50 000 50.000 50 000 50,000 26,894 171 32,749,193 38,183,469 43,159,002 9 0 °) 26 944 474 32 799 193 3B .233,469 43 209.002 e 0 0 ° 33356857;«328325153 372640669 316,497 402 peanscsza cesseesee peeaxgsse eessmeszs 100 100 300 100 9.093 501 12 274 920 15 514.644 18 801 314 0 0 0 0 3181 426 3.238 724 3.286 670 3324,343 0 0 0 0 12 27 020 15.514 744 18 801 414 22 122 757 321312961 312610449 =303.839.255 -284.374.645 (8.503.502)(8975 194)(9 464 610)(9.985,163) 312610449 =303839255 ©764374645 284 384.482 e 0 °Cy G 0 6 6 8 503 $07 BgT1 164 9 464 670 9,985,163 '°G Q 8 S03 SCP nGrt 186 9 464 616 9 985 162 Q °0 333 $86 g7!320 640 669 57 zt 73 Combined Balance Sheet Case #3:40%Increase in Capital Cost Vuhty Piant in Sernce Construction Work in Progress Tota!Ubity Plant Less:Accumulated Provision for Depreciation and Amortzatien Net Utury Plant Other Propeny and Investments Casn Snort.Tern investments Other Current and Accrued Assets Curent and Accrues Asseis Deterred Debits Total Assets Memberships Payor.age Capital -Begenring Cunem Year Capiai Credit Retirements Curent Year Net Margins Other Margins and Equihes Total Margins and Equites Gross Long-Term Debt bess Porton Due Wilhin One Year Net Long-Term Debt Other Non-Curtent Liabirhes Short-Term Line of Credit Curent Porton -Lang-Tenn Deot Otner Current and Accrued Liabilibes Current and Accrued Liabibnes Deferred Credits Total Liabiibes and Equibes 2011 2012 2013 2014 2018 2016 2017 312669801 «330179801 384.315276 «©278355270 «=788.864 008 ©=-797.164.408 --823.403.820 6.452715 6 581.760 6713 404 6.847 673 6 984 626 7 124,310 7 266,865 319122516 336,761,570 361028680 385202543 7E680R634 798288726 830670675 (123,831 .440)(133.398.670)(143.589 956)(154.496.936)177.338.800)(201.100.6869)(225.808.931) 195 291 O76 203.362.9006 217 438.724 230,706 006 589.506 834 597 187 866 604 861693 21.286 536 21-988 766 22 648.804 23:277.122 23,724,289 24,190,872 24,877 482 409.620 417.842 426 168 434.692 493,386 502,253 514 298 0 0 0 0 7,181,473 14,062 713 20 684,143 18.324.134 18 690.616 18.064.429 19.405,717 19,834,632 20.231.324 20 635.951 18.733.754 19.108 429 1%490.597 19,880,409 27,479,488 34.796.291 41 807,292 5.154 257 5,257,342 5.302.489 5.468 739 5,879,433 5,690,718 5 604,530 240475622 249717 456 «=-264 GADG1A «=-279.533.27G «=RO 792.745 «1 665.745 «G77 145.067 :ieeusses ss ecpeesese eagscsen=esearsazs secererss 236 675 244 468 249 387 254.344 256534 264.720 70.012 92 335.533 45936186 100.281.788 +=108234677 130,.884.187 =117 655527 174 4BG E30(882,406)(859.392)(1,002,818)(1,052,347)(4.106.842)(1.764 833}(1.968.843) 4 486 059 5 301.893 §956 707 6.601 B37 7,781,202 8.698 837 9,338,459 3.587 412 3.659 161 3732 344 3.806.991 3.883.731 3.960.793 4 040,008 99.786 273 104 185.416 105 216.378 115 045 502 121,798.18 428815 043 136 369.168 106.883449 ©112 ZEB 971 122,522 184 232.562.334 487.622.1352 491,692,264 -497987.704 (5,120 478)(4.228 072)(4.383.846){7,229.276){14,910,108){13.648 117)(16.620 503) YO 762071 «©108,040.899 -«-118136,938 «195.333.0589 AT291Z02A «=ATBG4A 146 ©481 367,291 1.229.022 1253 603 1278675 1304 248 1.330 333 1.356 940 1384075 6.137.464 §020 864 4.395 002 2.342.249 6701570 10 788,166 11 606 429 5120 478 4226 072 4 SE3 B46 7 229.276 44.910,208 43,048,717 56,620,50314.375 696 14 663 270 14 956.475 15.255 604 15 560 716 15 871 930 16 189 369 25 633 638 23 942 146 23738 303 24 B27 129 37 177 398 39 708 214 44 416 301 12 328.392 12.571 806 12 823 338 13.078 80S 13347 401 13 608,229 279 333 276 58 646.292 745 677 145 067 Combined Balance Sheet Case #3:40%increase in Capital Cost Uttty Plant in Sennce Construction Work in Progress Tatal Uttty Plant Less Accumulated Provision for Depreaialion and Amortization Net Utiny Plant Other Property and Invesiments Cash Short-Tern Investments Other Current and Accrued Assets Current and Accrued Assets Deferred Debits Totat Assets Memberships Patronage Capital -Beginning Current Year Capriat Credit Retirements Current Year Net Margins Other Margins and Equites Totai Margins and Equities Gross Long-Term Debt Less Postion Due Within One Year Net Long-Term Debt Other Non-Current Liabies Shon.Term Line of Creat Current Porton -Long-Term Debt Otner Current and Accrued Liabiihes Current and Accrued Liatritees, Deferred Creaits Tota!Liabilines and Equites 2018 2018 2020 2021 B516G0 91S 8B4.626.941 914656724 5SMBOT7Aai?144 ?960.384 7711592 7.865 823 85S 103 060 882 187 425 922 248 316 953.412 624 {251 421 960}(277 953.606)(308 429 803)(333 623 109) 607661100 ©614.233718 «=618.948.5136 19.589 515 25 184 629 25,713 022 26.263 267 26 836,016 520.524 529,935 539 534 $49 32426,894,371 32,746,193 36,123,469 43,158 002 21.048 670 21.469.843 21 896.036 22.337 017 48 463.365 $4 748,771 60.622 039 66 045.343 5,920 624 6,039,033 6,159,814 6,283,010 697 249.715 709.963 632 275.441 760 817 286 533 292 262 132.059 146 440 108 910 146 582.772 V7 740 710 {1 980,887)(2 104 634)(2 226 762)(3,154,814) 10.030.651 16.576 496 11 386.676 11,864 284 4.120.809 4 203 225 4 287 200 4373036 144,505 730 7153 066.514 162.314 533 WVVS 477 496.329 550 585,390 504 505,887 534 $02 443.742 {12,740 659)(17 $08 840}(18.896,830)(21.096 381) 485.628 991 487 881 664 486 986 704 483.347 597 1411764 1,439 996 4466 798 1496 172 42.899 725 9835710 8671 320 14.442 618 42,770,659 "17 506,840 48 896 636 21 096,187 16 513 356 16 B43,420 17 180 288 17 §23.894 41 623 540 44 187 970 44750 438 50 062 663 13.880.593 14 188 001 14.444 164 14 729.964 687 249 718 700 734 S45 59 709 962 632 Case #3 2015 2016 2047 2018 2019 2020 2021 Net installed ESTIMATED 8USBAR COST OF NEW EKLUTNA PLANT "°°"*"esseees i stmated Eatimated Estimated Capacity of Energy Reqd Cost of New Cost of New Capital New Piant from Eklutna Vanable Required Projecied Eklutna Power Eklutna PowerInvestment(kW)Wansila Plant Interest Depieaation O&M Fuei Cos!Margins Cost (SMWh)(S&kWh) 351,120 000 162.222 714.974 628 19 311.600 14.418 800 7.950 518 50 787 451 2.896.740 92 065 109 $128.8 $0,.42877 0 162,222 726 920 248 18 934,071 11,118 800 6164 187 §2.152 355 2840 111 93 209,523 $128.2 $0.42823 0 162.222 739 045 051 18.535,.777 14.118.800 8.383.366 53.552 463 2780 367 =$4,370,773 $127.7 $0.12769 0 162,222 754,351,727 18 115,578 11,118,800 8.608 197 54 988 668 2.737.337 95.548 579 $127.2 $0.12717 0 162.222 763 843.003 17 672.267 11418 B00 8 838 622 56 461 887 2.650 840 96 742.616 $126.7 $0.12665 0 162,222 776,521 648 17,204,875 11,418 800 9.075 388 57,973,060 2,580 686 97 952.509 $126.1 $0.12614 tt)162 222 789.390.473 16 714.159 11:138 600 9.318 047 59 $23 151 2 506 674 99 177 831 $125.6 $0.12564 60 Case #4 $7.75/mmBtu Gas Cost (RIRP 2015 Estimate);3X Multiplier for Diesel 61 Case #4:$7.75/mmBtu Gas (RIRP 2015 Estimate);3X Multiplier for Diesel Retail Rate Projection (Swn) Sales Revenue per kWh Sold (Annualized) Cost of Power Projection (SAWn) Source: Chugach Electric Association,Inc. (Includes assigned hydro) New Ekiutna Generating Plant Bradley Lake Hydro Eklutna Hydro Overall 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 0.1490 01617 O1669 0.1727 01748 0.1784 01812 01840 01863 01892 01912 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 009649 0.09836 070121 0 10435 0.11456 0.11443 0.11428 0.11413 0.11400 0.11387 0.11375 0.04492 0.04582 004674 0.04767 0.04862 004960 0.05059 0.00591 O00609 000627 0.00646 0.00665 0.00685 0.00706 0.10615 010619 010624 6.10630 0.10636 010643 0.10649 62 income Statement -Distribution Case #4.$7.7S/mmBtu Gas (RIRP 2015 Estimate);3X Mulnpier for Diesel 2011 2012 2013 2014 2018 2016 2017 Sales Revenve 103 570 177 4 130.400 119 545 345 125 576.768 429.002.7753 133,644 616 137,796 821OtherElectneRevenur23568602,380 429 2.404 233 2 428 275 2452,558 2.477 084 2.501,854 Operating Revenue and Patronage Capital 05,927,037 116,510,829 124,949,578 127,999,043 491485,331 136,121,699 140,798,676 Power Production Expense 0 0 G oO 0 [9]cCostofPurchasedPowerG6445306749063207831081381870.039 84 532.066 85.837 678 87.167 644TransmissionExpense33,450 34119 34.601 35.497 36.207 37,294 38,412DistribuvonExpense-Operation 3 080.316 3.143 922 3.204 76%3 268 856 2334 233 3 434 260 3.537 288 Distribution Expense -Maintenance 3.799 872 3 875 869 3963 387 4032 455 4.413 104 4.236.497 4,363 592 Consumer Accounts Expense 3,164 232 3,227,517 3,292,067 3,357,908 3.425 066 3,527 818 3.633 653 Customer Service and Informational Expense 170 $94 174 003 177 483 181.033 184 653 190,193 195 899 Sales Expense 0 0 0 °0 0 0 Admmistrative and General Expense .10.668 862 10,682,235 13,099 884 11:324,862 14:$48,319 41,894 .769 42,251,612 Total Operation and Maintenance Expense 87,362,631 96,241,990 100,073,196 104,067,670 107,173,649 109,158,509 111,188 099 Depracation and Amortization Expense 7,790 006 &383.516 8.930.360 9.557 504 10,272,618 14.078,962 44,907 927 Tax Expense -Property ano Gross leceipts 347.658 380.793 386 505 392,303 398 187 404,160 410 223 Tax Expense -Other 694 743 708 636 722.811 737.267 782 012 774,573 797.810 Intarest on Long-Term Debt $,923 305 6 237 639 €.G17 462 7,159 828 7781 202 8.698,837 9,338 489 Interest Gnarged to Carsiruction (Credity (33 000)(33 669){34 333)(35 020)(35 720)(36,435)(37,163)Interest Expense -Other 250 123 153.437 126.522 109,675 $8 556 146.846 227,708 Other Geductons 188 364 G2 134 495.974 199 893 203 a9t 210,008 216 308 Total Cost of Electric Service 102,523,824 112,264,485 147,017,486 122,189,321 126,604,395 130,435,461 134,049.367 Patronage Capital and Operating Margins 3,403,213 4,246,344 4,932,092 §,809,722 4,850,936 5,686,238 6,249,309 Non-Operating Margins -Interest 182 692 158 192 158.356 158 $23 198 694 158,868 159 O45 Allowance for Funds Used Dunng Construction 12 000 12 240 42 485 12 734 12 989 13,249 43.514 income (Loss)trom Equity Invesimenis 0 0 bY Q 0 °ie)Non Operating Margins .Other {6 28)7,033)(7 244){7 461){7,685){7,316){8 353) Generanon and Transimussion Capital Credis , 349 982 300 600 250.000 200 000 2.119.100 2.184 815 2.238,164OtnerCapdalCreditsandPatronageDividends$75.000 592 250 €10.018 628.318 647 168 666,583 686 S560 Ewrauidinary tems 6 is}a fe)0 o 0 Net Margins 4,486,059 $301,993 $,958,707 6,801,837 7,781,202 8.698,837 TIER Target 1.76 485 4.90 198 2.00 2.00 2.06 Achieved TIER 1.76 188 4.90 495 2.00 2.00 2.00 Overalt Rate Change Required -Current Year 8.57%3.47%39t%141%243%190% Overall Rate Change Required -Cumulative (2011 Base Year)esr 12 06%15 95%VFI3S%19 7TE%23 68% SRF Rate Change (Base Rates Only,No WPCRA)-Current Year &BBY 192%241%14%329%248% SRF Rate Change (Base Rates Only,No WPCRA)-Laat Three Years 36 26%.14 02%TN 2th 447%§84%55m Modified Debt Service Coverage Ratio -Current Year VIS 1693 1921 1983 1559 1578 1.885 Modified Debt Service Coverage Ratio -Best 2 of 3 Years 1.839 1,952 1.952 1780 1.733 Equity Ratio 41.5%41.7%412%41.2%44%399%39.5% 63 income Statement -Distribution . Case 84:$7.7S5/mmBtu Gas (RIRP 2015 Estimate):3X Muitipiier fo Sales Revenue Ciher Electnc Revenue Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Transmission Expense Distribution Expense -Operation Oistnbuton Expense -Maintenance Consumer Accounts Expense Customer Service and Informational Expense Sales Expense Adminisiratve and General Expense Tota!Operation and Maintenance Expense Deprecaton and Amortization Expense Tay Expanse -Propeny ano Gross Receipts Tax Expense -Other interest on Long-Term Dabt interest Charged to Construction (Credit) Interest Expense -Other Other Deductons. Total Coat of Electric Service F ge Capital and Operating Margins Non-Operating Margins -Interest Allowance tor Funds Used Durning Construction tricome (Loss)fram Equity invesiments Non Operating Margins -Other Generation and Transmission Capita!Credits Other Caprtat Credits and Patronage Owdends Extraordinary Items Net Margins TIER Target Achieved TIER Overall Rate Change Required -Current Year Overall Rate Change Required -Cumulative (2011 Base Year) SRF Rate Change (Base Rates Only,No WPCRA)-Current Year SRF Rate Change (Base Rates Only,No WPCRA)-Lasi Three Yea Modified Debt Service Coverage Ratio -Current Year Modified Debt Service Coverage Ratio -Gest 2 of 3 Years Equity Ratio 2018 2019 2020 2021 141,968,405 145954930 150,a37621 184.328.230 2.526 873 2 $52,142 2.877 663 2.603.440 144,515,278 148,507,072 «'153,015.285 --156.828.670 c 0 0 0 86522071 89.901 045 91.304 622 92 732 628 39,565 40 752 31.974 43.233 3643 407 3.752 708 3 885.290 3981,249 4 494 499 4 629 334 4 768.214 4919-261 3.742.663 3 854 942 3.970.231 4,089,708 201.776 207 629 214.064 220.486 0 0 4 Q 12,619,160 42,997,735 13,387,667 13,789,297 113,263,141 198,384,347 «-147,552.422 --119.768,062 12,700,918 13.505 878 14,333 564 35.137 203 416 376 422,622 428.961 436.395 821,744 846 398 874,788 897 94210,030,651 10 575 496 #1,286.679 19 864.284 (37 907)(38 665)(39-438)(40,227) 226 300 228,787 136 933 84 741 222,797 229 481 236.366 243.457 437,644,020 ©144,154.342 144,907,275 148,390,857 6,871,258 7,352,730 8,108,009 8.537.813 159 226 159.410 759.599 159,79113784140604434114.678 Q 0 8 0 (8 398)(8 650)(8 909)(3 176) 2.287 603 2.329 552 2.263 395 2.388 477 707,177 728 393 750.245 772 752 °0 0 0 10,030,651 10,575,496 17.386,679 200 2.00 2.00 200 2.00 200 200 2.06 1.85%1.57%1.94%4.36% 23.53%28 10%27 08%28 39% 238%1.94%2.39%$59% 811%6 IM%6 65%5 89% 1.612 2154 att 1686 4.750 2.020 1.933 1.933 39.9%399%405%40.9% 64 income Statement -G&T Case 44:$7.79mmBt Gas (RIRP 2015 Esumate}.3X Muttipier for Diesel .0' Sales Revenue Otner Etecine Revenue o and Pat ge Capital Power Production Expense Cast of Purchased Power Transmission Expense Distnbutor Expense -Operation Oistndution Expense -Maintenance Consumer Accounts Expense Customer Sennoe and Informatona:Expense Sales Expense Aommistrabve and General Expense Tota!Operation and Maintenance Expense Depreciation and Amortization Expense Tax Expense -Property and Gross Receipts Tax Expense -Otner interest on Long-Term Dett interest Chargec to Construction (Creat) interest Expense -Other Otnet Desuctons. Total Cost of Electnc Sernce Patronage Capital and Operating Margins Non-Operating Marging -Interest Allowance for Funds Used Dunng Construction Income (Loss)from Equity investments Non Operating Margins -Other Generation and Transmission Capital Creats Owner Capiai Credits ano Patronage Owdends Extraordinary ttems Net Margins Operating TIER Target Achieved Overall TIER Equity Ratio 2011 2012 2013 204 2018 2016 2017 0 0 9 0 84,532,066 65.637 678 07,167 644000000 0 0 84,532,066 05,837,678 87,167,644 6 9 ry 0 58 283 267 59.840,119 61 457.402 0 8 0 ©2 443,699 2.492.573 2 542.424 0 0 0 9 0 0 ) ©0 0 0 0 0 0 0 °0 0 a a 9 0 0 0 0 0 °0 0 0 0 0 0 °0Py00F)0 0 Q 0 0 r)°0 °0 0 Oo O --)O 60,726,966 62,342,694 63,999,826 0 0 r)0 7 $42,000 7,342,000 7 982.000 0 0 ©0 0 °fy 9 0 0 6 r)0 6 o 6 ie}Q 13,7 4.000 13,524 336 12 239,841 0 0 Q 0 0 Q f) 0 0 0 6 o 2 0 Oo ity i¢)0 Q o Q 0 0 9 Qo 82,462,966 83,809,028 85,161,667 rr er ft)r)2.069.100 2.028.650 1.985.976 0 9 r)0 753 164 252.188 Q ij rs)o 0 0 °°0 0 0 °0 0 e 0 0 0 0 o La fe)a o 0F)0 0 0 0 °0 °0 $ 000 coo 0 G0 ce 318 vie 500 009 ae 000 118 11 00%00%0.0%00%09%18%2% 65 income Statement -G&T Case #4:$7.70 mmBtu Gas (RIRP 2015 Estimate),3X Multipiier fo Sates Revenue Other Elactnc Revenue Operating Revenue and Patronage Caprtai Power Producton Expense Cost of Purchased Power Transmssion Expense Distnbution Expense -Operation Disinbution Expense -Maintenance Consumer Accounts Expense Customer Service and Informational Expense Sales Expense Admunisirapve and Generai Expense Total Operation and Maintenance Expense Depreciation and Amoruzaton Expense Tax Expense -Property and Gross Receipts Tax Expense -Otner {interest on Long-Term Debt Interest Charges to Construction (Credit) interest Expense Otner Otner Deguchons Total Cost of Electric Service Patronage Capital and Operating Margins Non-Operating Margins -interest Allowance for Funds Used Durng Construchon Income (Loss)from Equrty Investments Non Operanng Margins -Other Generation and Transmission Capilal Craaits Other Capital Credits ano Patronage Dividends Extraordinary hems Net Margins Operating TIER Target Achieved Overall TIER Equity Ratio 2018 2019 2020 2024 86 922.071 89 901 045 9:394622 92.732 826 6 0 0 0 88,522,074 69,901,045 91,304,622 92,732,828 63.106 145 64797 402 66,532 252 68,311.82 2993273 2645 138 2.698.041 2 752.002 °0 0 Q 6 0 0 0 °0 °0 0 0 0 ° °0 °0 0 0 0 Q °0 0 0 65,699,418 67,442,540 68,230,293 71,063,804 ?842 009 7.942.000 7,942 000 7,942 000 0 0 0 0 0 0 0 ° 17 939,698 12 623,088 12,288.982 11,996,542 0 0 °° e 0 0 0 9 0 0 o 86.581.197 8B.007,588 89,461,275 90,942.346 1,940,955 1,893,457 1,843,347 1,790,481 346 648 436 095 520,047 997,995 0 0 ° ®9 0 0 0 0 0 o 0 0 0 0 0 0 0 2,379,552 2,383,395 2,380,477 rm 1s 5 +15 #1 118 1 120 37%48%59%7.0% 66 Combined income Stat ¢ Case #4.$7.7S:mmBw Gas (RIRP 2015 Estimate),2X Multiplier for Diesel2014 2042 2013 2014 2018 2016 2017 Sates Revenue :163,570,177 114 130,400 41%545,345 125,570,768 129,002,773 133,644 616 137,796,821OtherElecineRevenue2356.860 2 380 429 2.404 233 2.428.275 2 452 SSB 2 477 084 2.501 654 Operating Revenue and Patronage Capital 165,927,037 146,510,829 121,949,578 127,999,043 134,455,331 136,121,699 940,298,676 Power Production Expense 0 0 Q 0 58.283 267 $9,850,119 61 457 402 Cost of Purchased Power 66 445 308 74 906 320 76.390 813 81 870.039 2 443.699 2.492.573 2.582 424 Transmission Expense 33.450 346119 34.801 38 497 %.207 37.294 38412 Distribution Expense -Operavon 3,080,316 3,141,922 3,204,781 3,268,856 3,334,233 3.434 260 3,527 288OrsibuhonExpense-Mamntenance 3.799 872 3.875 869 3.983 387 4 032.455 4413104 4.236 487 4,363 562ConsumerAccountsExpense3.164.232 3.227 817 3262 067 3.357 908 3.425 066 3.527 818 3.633 653 Customer Service and informatonal Expense 170,591 174,003 377 483 181.033 184 653 190 193 195 699 Sales Expense Qo 0 o }o 6 [¢] Administrative and General Expense 10.666 862 10.882 239 11,099 684 41-321 882 11 548.319 11,884,769 12.251.612 Total Operation and Maintenance Expense 87,362,631 "96,241,980 100.073,196 104,067,670 83,968,549 85,653,522 88,020,282 Depreciation and Amonuzaton Expense 7 790,G00 8,383,516 6,930,360 9,557 504 18,214,618 19,020,962 49,849,927TaxExpense-Property and Gross Recespts 347 658 380793 386,505 32.303 398.487 404,160 410.223 Tax Expense -Other .694 743 708,638 722.811 737 267 782.032 774 573 797 810 interest on Long-Term Dept $923,305 6 237 639 6 617 452 7 159 828 21,575,202 22,223,173 22.578 200 interest Charged 10 Constructon (Credit){33 000)(33 660)(34,333){35 020)(35.720)(36.435){37.163}interest Expense -Other 250.123 183.437 125,522 109.876 58556 146 B48,227 708 Other Deauctions 188 364 192.134 195 974 199 893 203.891 210,008 716 308 Total Cost of Electric Service 102,523,824 112,264,486 197,017,486 922,189,324 124,536,295 128,406,894 132,063,391 Patronage Capital and Operating Margins 3,403,213 4,246,344 4,932,092 §.809,722 €,920,036 7.744.888 8,235,285 Non-Operating Margins -interest 182 692 1$8 192 458 356 158.823 208 694 342,032 411233 Atlowanca tor Funds Used Dunng Construction 12 000 12 240 12 485 42.734 12.989 13.249 13.514Income(Loss)from Equity investments G 9 0 it](4)fe]ft) Non Operating Margins -Other (6 828)(7 033)(7 244)(7.461)(7 685)(7,216)(8 1§3)Generation and Transmission Capital Crearts 349 GR2 300 000 250,000 200 000 G 0 o Other Capita!Credits and Patronage Divicends $75,000 §92 250 610.018 628,318 647 168 666,583 686.560 Extraordinary Items it}i')Qo 0 oO fe)Qo Net Margins 4,486,059 $,301,993 §,955.707 6.801.837 Achieved Overall TIER 4.76 18s 190 195 136 7a9 141 Ovorall Rate Change Required -Current Year BS7%347%3.91%141%2.43%1.90% Overall Rate Change Required -Cumulative (2011 Base Year}857%12:04%38 95%17-35%19 TA%21 68% SRF Rate Change (Base Rates Only,No WPCRA)-Current Year 6 £8%1G2%231%Os 3 29%2 48%SRF Rate Change (Gase Rates Only.No WPCRA).Last Three Years.Ve 2P%14 92%T1218 eare,5 64%$O1% Equity Ratio 415%417%412%42%22.3%22.8%23.5% 67 Combined income Stat t Case 84:$7.75:mmBw Gas (RIRP 2015 Estumate),1X Mutupirer fo Sales RevenueOtnerEtectncRevenue Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Transmission Expense Distntution Expense -Operation Distnbution Expense -Maintenance Consumer Accounts Expense Customer Sennice and informatona!Expense Sales Expense Aamunsiratve and General E cpense Totai Operation and Mamenance Expense Deprecaaton and Amortization Expense Tax Expense -Property and Gross Recespts Tax Expense -Otner interest or Long:Tenn Debtinteres:Charged to Construction (Zreait) Interest Expense -Other Other Deductions Total Cost of Electric Service Patronage Capital and Operating Margins Non-Operatng Margins -Interest Allowance tor Funds Used Dunng Construction tncome (L055)from Equity Invesiments Non Operating Margins -Other Generation and Transmission Capital Credits Otner Capuat Credas ang Patronage Dwends Exyaordinary Items Net Margins Achieved Overall TIER Overalt Rate Change Required -Current Year Overait Rate Change Required -Cumulative (2011 Base Year) SRF Rate Change (Base Rates Only,No WPCRA)-Current Yoar SRF Rate Change (Base Rates Only.No WPCRA}-Last Three Yoa Equny Ratio 2018 2019 2020 2021 14)966 405 145 954 830 196.437.8621 1$4 325.2302.826 873 7552 142 2 577 663 2.602.440 144,518,278 148,607,072 «183,018,285 156,928,670 63,106,145 64,797,402 66,532,252 68,311,802 2.593 273 2665 738 2.698.041 2.752 002 39 565 40 752 41674 43.2333,645,407 3,752,709 3.865 290 3,981,249 4,494 499 4.629.334 4.768 214 4911261 3.742 663 3 BDA a2 3970 591 4.086.708 201 776 207 82g 214,064 220.486 0 0 0 0 12619.160 12.907 738 13.387 667 43,789,297 90,440,487 92,025,641 96,478,093 98.099,038 20,642,598 21407 B7E 22,275 56a 23,079,203 416 376 422 622 428 961 435 395 821,744 646.396 871,788 897,942 22.970.350 23 198 544 73.675 663 23,800,626 (37 907,(38 665)(39,438)(40 227) 226,300 228 787 136 933 84741 222797 229 481 236 366 263,487 138,703,066 139,260,885 143,063,928 146,600,375 O812.213 «8.248.187 9.983,357 10,328,294 305 674 595 505 679 646 757 78633:78 14.060 14341 14 628 0 o 0 0 (8,398)(8 650)(8 908)(9 178) o 9 0 0 707 177 728.393 750,245 772,752 ¢°9 0 10,030.681 11,386,679 14,864,284 144 146 4148 150 1.85%1.57%1.94%1.36% 23 53%25 10%77.08%28 3% 738%1 yam 235%*69% ests £77 665%5 por, 24.4%25.2%26 3%27.2% 68 Balance Sheet -Distribution Case #4:$7.75/mmBtu Gas (RIRP 2015 Esumata);IX Muttipher for Diesel Utiity Plant in Sennce Construction Work in Progress Total Utthty Piant Less'Accumulated Provision for Depreciation and Amonization Net Utiity Plant Other Property and Irvastments Cash Short-Term invesiments Otner Currant and Accrued Assets Current and Accrued Assels Deferred Debits Tota'Assets Memberships Patronage Capital Begsnning Current Yaar Capa!Credit Retirements Current Year Net Margins Other Margins and Equites Total Margins and FE quittes Gross Long-Term Debt Less Portion Due Within One Year Net Long-Term Dedt Other Non-Current Liabilities Short-Term fine of Credit Current Pomon -Long-Term Debt Other Current and Accrued tiabiites Current and Accrued Liatuities Deferred Credits Totai Liabtibes ane Equines 2011 2042 2013 2014 2016 2016 2017 312.669 801 330.175 801 354,318 276 378355270 408 744.008 «=440.044 408 «=472.783.8206.452.715 6.581.769 6 713 404 6,847,673 6 064 626 7.124.319 7,266,805 319,122,816 336,761,570 361,028,660 «385.202.9543 «415,728,634 447.166.7268 «479,550,625 (123,834,440)(433 398670)(143.589.956)(154.496.9368)(166.220,000)_(178.863.260)-_(192.452.531) 195,291,076 «203,362,900 -217,438.724 =230,706,006 ©2245,508635 «=288.305.4668 «287 098.053 1,296,536 21 986 786 22 648,804 23.277 122 25 863 389 28,494 787 31.216,531 409 625 447 812 426 168 434,692 443.366 452 253 461.298 9 a C °0 0 0 18.324 134 18 690,616 19.064 429 19.445 717 19.834 632 20,231,328 20,635.95) 18,733 754 19 108,429 19,490 597 19 880,405 20.278 017 20.663,578 24,097 249 5.194 257 5 257 342 5.362.489 5 469 739 $579 133 5 690.716 5.304 530 56 79,333,276 301,209,174 3¢3,171,54?345,216,404 rireerene eeresszes zesescces geacerees 239.675 244,468 249,357 254 344 259,431 264,620 269,912 92.435 833 96 930 186 100,281 748 305.254677 410.984 167 417 658.527 {24 $89 $30 (882 406)(959.392)(1 002 818)(1.052 347)(1 109 842)(1.764 833)(1,868,843) 4,486,059 5,301,993 $.955,707 6,801,837 7,781,202 8,698,637 $.338,459 3,587 412 3.659 161 3.732 344 2.806 994 3.883 131 3.960 793 4 040 009 99 766.273 "04 185 416 109 216 373 415 045 502 421 798 OBS 128.814 943 136.369.068 406.982 449 112 265 971 $22,522,184 122 562.334 143.566.201 $4,678,121 168 643.652 (5.420.478){4.228 072)i4 383 846)17,229 276)(7 668 410}{5 408 126){8.£60.312) 161.762 971 108 040 899 178138 338 125333.058 135 $97 891 149,270,008 160.053.340 1,229 022 1253603 -1278 675 1306 248 1330 333 1.956 $40 1384 079 6,137,464 5,020,864 4,595,002 2,342,245 5,673,930 9,108,201 $9,082,067 5 120 478 4 228072 4.383 846 7 229 276 7 66E 410 $408,126 8 560 312143756961466321014956.475 15 258 604 15,560 716 19.871.930 +6 185.369 25,633,638 73,912,146 23,735,323 24,827,129 29,103,056 30,268,258 33,601.656 42083.718 12 328 392 12 $71 G00 32823 338 13079 805 33341401 43606 279 ISS 717486 264 945,614 27%333 276 305 209 174 345 216 404 >zs =e ce sesseness 69 Balance Sheet -Distribution Case #4.$7.75/mm@tu Gas (RIRP 2015 Estimate),3X Muttiptier fo Utiity Piant in Service Construction Work m Progress Total Unity Plant Less:Accumulated Provision for Depreciation and Amonization Net Utility Plant Other Property and Investments Cash Short-Term Investments. Other Current and Accrued Assets Cunent and Accrued Assets Deferred Detits Total Assets Memberships Patronage Capital -Beginning Current Year Capital Cradt Retrements Current Year Net Margins Other Margins and Faunes Tatal Margins and E quites Gross Long-Term Debt Less:Porton Due Wanin One Year Net Long arm Dent Other Non Curent Liatithes Short-Term Line of Creda Current Portion -Long-Term Debt Omer Current and Accrued Liabutes Current and Accrued Lathes Deferred Credits Tota!Labites and Equibes 2018 2019 2020 2021 500570919 533506941 --$63.516.724 $94.426 BDI 7atzval 7 560 384 7-733 592 7 855.623 507,983 060 $41,067,325 -«5571,226.316 «602.292.624 (206,946 760)(222,359,606)1238717003)(255.991 S09) 301.036.300.318 707719 «332511313.348.301 115 34.027311 36 BES 256 39 782 896 42 744 124 470,524 479.935 484 534 499.324 9 0 0 9 21,088 670 21 469 643 21 895 036 22.337 017 21,519,194 73,969.578 22,388,570 22.836,341 5.920621 6,039 033 6 199.814 6 243.010 383.565 587 400642592 418 164,591 >:eesesezes 275.311 260,817 286 433 292.162 132.059 146 140108910:148.582772 «187 740.710 17980 887)(2,101,634)(2.228 742)(3.154.814)10,030.651 10,575 496 11,386 679 11,864 284 4120 809 4,203,225 4.287 290 4.373.036 144505030 153066814 i623i4433 ©174,115.37 $77,025600 192580055 202048279 +©--.208.069.097 (4.207 158){6 537 646)(§434 220}(11.110 988) 177816 442 «=184042409 «=192614059 =:196.958 109 1401761 1.439 996 1468 796 +498.177 $151,466 5.477 301 3.289.635 $.228 067 4,207 158 8837 646 9 434 220 11 110.6681654315616.843 420 17.186 286 17 $23 894"75 a7+804 30 688,387 30.008 143 33,662 546 44 186 Ot 14.441 16)14729 984 400 ba?$9228356S$87 70 438 164 591 Balance Sheet -G&T Cane 64:$7.75/mmBtu Gas (RIRP 2015 Estimate);3X Multiplier for Diesel 2019 2012 2013 204 2018 2016 2017 Utirty Piant in Sernnice Qo 6 oO (*)250.850 000 250,800 000 250,600 000 Conastrucvon Work in Progress 0 0 0 0 0 [*)by) Total Upkty Plant ts)Lt)i)9o 256.800 000 250 800 000 250,800,000 Less Accumuiated Provision for Depreciation and Amorhzation [')oO o i)(7 $42,000)(15 884 000)23 826 000) Net Utlty Plant i)i)0 o 242 858 000 234.016 000 226 974,000 Other Property and Investmenis Qo Q fe]o te]9 iy Cash 0 i)ie)is)50.000 50 000 $0,000 Short-Term investments 0 a [)o $198,222 12,059,306 14,782,423 Other Current and Accrued Assets c is}0 [°)0 a c Current and Accrued Assets Q 0 [*)fe)5.158 222 10.109.306 14.832 423 Deferred Debits 0 6 iy ie)0 Total Assets 0 248 016.222 245.025 396 5 :=s ssexcsecs Memberships G G 0 ie)100 100 100PatronageCapital-Beginning ie)°fe)c 0 2.479 100 4300915 Current Year Capital Creait Retirements o [e)0 i}i}fs]i)Current Year Net Margins 0 6 0 0 2.418 100 2 181,615 2 238.164 Other Margins and Equities [*}0 0 it}Q Le)oO Tota!Margins and Equites i)is}0 ie)2.319.200 4307015 6 $39 179 Gross Long-Term Dent °0 (+)(+)245 8G7 022 240 724 361 235.267 244 Less:Porvor:Due Waitin.One Year Qa f')0 0 (5 172 6634)(8 4§7,137%(5.787 279) Net Long-Term Dent a i)ty)i)240.724 384 235 267 244 229 509 965 Other Non-Current Liabirtes y 0 Q ie)°te)9 Shon.Term Line cf Creat 0 o Q (a Qo [e}9 Current Porvon -Long Term Debt c ie te)ig $172 641 $457 137 5 78?oF Other Curent and Accrued Liabrimes 0 o Q i 9 Qo Curent and Accrued tiabities 0 o (°)e 5 172 6a §457 137 S797 279 Deferred Crearts 0 Q o fe fe)°is) Total Liabiipes and Equities fe)(e]is)i)246 016 22.245 025 396 241 BUG 423 eotgsccse scnrecers evirgesis Brrreteses :ze seerereer zeraaerts 7 Balance Sheet -G&T Case 84:$7,7S:mmStu Gas (RIRP 2015 Estimate);3X Multiplier fo Ubhty Plant im Sernnce Construction Work wi Progress Tota!Ututy Ptant Less:Accumutated Provision for Depreciabon ang Amortization Net Uvicy Piant Other Property and Investments Cash Shon-Term investments Other Current and Actrued Assets Current ang Accrued Assets Deterrea Debits Total Assets Membershins Patronage Capital -Beginning Current Year Capiat Credit Retirements Current Year Net Marans Otner Margins and Equities Total Margins and Equities Grass Long-Term Debt Less:Portion Due Wine One Year Net Long-Term Debt Otner Non-Current Liabiibes Sron-Term Line of Credit Current Portion -Long-Term Deot Otner Current and Accrued Liabilities Current and Accrued Liabites Deferred Credits Tota!Liabuines and Equittes 2018 2019 2020 2021 256 800 000 250 890 000 250,860 600 250.600 000(7)0 °() 250 800.000 250 B00 000 250.800 000 250,800.000 {31 768 000)139.710 000)147 652 000)($5 594 000) 219.032 000 211 090 000 203,148 000 185 206 000 i)0 oO 0 50 000 50 000 50 000 $0 000 19 254 747 23 452 369 27 348 768 30 919.809 fe)Q o is 19 304 747 23 502 369 27 399,768 AO 969 809 o it)(+)i) 238 336 74 224 $62 366 sar 230 S87 768 100 100 100 100 €§39 079 8B E26 682 31-466 244 13519 629 ie)9 te)Q 2.287 603 2 326 $52 2.363.365 2 388.477 0 Le)c 0 8.826 782 11,156,334 13.819 729 15 608 206 229.509 965 223 436 038 217 028 039 210 267 604 {6 073 920)(6 407 996)(6 780 436)(7 132 269) 223,436 035 217 O28 039 210.267 604 203,135 344 C Q 0 iy Q ie)fy 0 €.9°3 93C 6,407 996 6.760 436 7-432 260 0 is}iy 0 6,073 $3¢6 407 996 6 760 436 7 132 260 9)tt)it)Qo 238 336 747 230 547 768 228 175 809 72 Boa esr Combined Balance Sheet Case #4:$7.7S/mmBtu Gas (RIRP 2015 Estimate);3X Muluplier tor Diesel Utitty Plant in Service Construction Work m Progress Total Uttty Piant fess:Accumulated Provision for Depreciation,and Amontwation Net Utiity Plant Other Property and Investments Cash Short-Term Investments Other Current and Accrued Assets Current and Accrued Assets Deferred Debits Total Assets Memberships Patronage Capua -Beginning Currert Year Capital Creat Retrements Current Year Ne!Margins Otner Margins and Equities Total Margins and Equites Gross Long-Term Dett Less:Porton Due Within One Year Net Long.Tern Debt Othe:Non-Curent Liatiines Short.Tenn Line of Credit Current Portion -Long Term Debt Otner Current and Accrued Liabiines Current and Accrued Liatures Delerred Credits Total Liabiites and Equnies 2011 2012 2013 2014 2015 2016 2017 312669801 «330178601 «384315276 «378585270 «65054008 =904408 =-723.087 B2064527156SH176967334066647.673 6.984 626 7.124.319 7.266 805 319 122 576 336761570 «361028680 «385.207 B43 «BH S2E634 «=«G7908726 «730 350.625 (123831440:(133 398.670)(143589056)(154.496 936)(174,162,000)(104.747 260)(216.278 £31) 195 291 076 203 362 906 217 438 724 230,706 006 492.366.634 §03.221,466 514,072,093 24 266,638 21 935,7 22 648,804 23,277,122 2,724,289 24 190 872 24.877 482 409 620 417 B12 426.188 434 652 493 386 502 253 511.298 0 o 0 0 §.108,222 10,059,396 14,782 423 18 424 134 1B 690 G16 19 064.429 19445717 19 634 632 20 231 324 20 655 951 1732756 1S 108 429 19 400 597 76 686 409 25 436 240 30702973 38.629 672 5.362.489 5,469,739 $979,133 $690,716 5.804.530 262940614 «279.333.2768 «=4 108296 «©563696027 «=«580 4B 748 229 678 244,468 245 357 254 344 259531 264,720 270.012 92 335.533 $5930186 «100.281,78B «=10S 264677 110,984 167 17.658.527 124 $85 530 (882 506)(959 362)(7 002.838)11,052.347)(1.106 842)(1.764.633)(1 868 843)4.486.056 5 301 903 5.955 70/6 801,837 7 785 202 6.696.637 9 336,459 3587 412 3659 161 3732344 3806 891 3883131 3 360,783 4 040.009 09766273 «104 185416 «=109 216.378 «=115.045 502 «127,798 186 «=128815043 «136 365.168 TOOGEZ44G 2 AEOTT «122 822.184 132 262.954 ©388.469323 «395,402,511 403 880,695 (5 120 478,14 228 0725 (4 383 846)(7.249.276)(12.849.052)140.864.2632)(14.97.8861) Wi7ers71 BOAO BOS «=-«77H138338 «=125933058 «=876622271 «=364597249 «389 563 505 1279022 4253603 +278 675 7304 248 1330 333 1356 946 +:384.079 6 127 464 5 020,864 4 395,002 2.342 249 5.873.830 9,208 201 9.052 007 £120478 4228 O72 4383 846 7.228 276 12 841 052 10 865 263 14317591 14.375 696 %4663 210 44 G56 A7S 18 255 6046 15 560 716 15 874 930 16 189.365 25 643 638 24912 146 er)738 323 24 827 126 34 275 696 35 645 354 39.58 967 42 083716 2 305 302 i STE WO 12 23 338 13 07%605 13 341 401 13 608 729 240 4/5 622 249 797 656 264 940 614 279 333,276 563,896.02?580 483,748 ene Bat Combined Balance Sheet Case 84:$7.7SmmBtw Gas (RIRP 2015 Estmate),3X Mulupties fo Uulty Plant m Senice Construction Work in Progress Total Uuity Piant Less Accumulated Provision for Depreciation and Amonuzaton Net Unity Plant Other Property and Investments Casn Short-Term investments Otner Current anc Accrued Assets Curent and Accrued Assets Deferred Debts Total Assets Memobersnips Patronage Capital .Beginaing Current Year Capita!Credit Retirements Current 'fear Net Margins Other Margins and Equites Tarai Margins anc Equites Gross Long-Term Debt Less Poron Due Weahin One Year Net Long-Term Dept Otner Non-Current Liabuities: Shot Term Line of Creat Curent Portion -Long-Term Dett Other Current and Accrued Liapites Current ang Accrued Liabiites Deterred Credits Tota!Latites ang Equites 2018 2019 2020 2021 751370919 784306941 «814316724 ©845 2268017aNz1447$60,364 7.741 592 7 065.823 758783060 ©751867325 ©822.028316 «853.092 624 (238,714 760)(262 O69 606){286 369 003)(311,565 508) 520068306 $29 787,719 «=538656313 =$a 507115 25 184 679 25,713 022 26 263 267 26 636.019 520 $24 S29 035 539 534 $49,32418,254,747 23,452 369 27,449 768 30 519.800 21 048 670 21 469 643 21 899.036 22 337.017 "a0 823 Oat 45451047 49 788 338 53 806 150 8.820 621 6 03¢033 6.159.814 @ 283010 607001722 «617 870.731 ©6 28,432 294peegsestissa90esausacta 27844}780 997 286 533 202 262 V32059 146 140198.910148.582772 ©-187.740.710(1,980,827)(2.1036)(2.228,742)(3,154,814)10 030 651 10 $75 466 15.386 676 11 664 2044.120.809 4 703.275 4 287 290 4.373.036 146505130 ©153066 81S «62594535171.a7 406535565 416.016.0900 419.076.318 «=418 336701(10 281.088)(14 845.642)(16 194.656)118 243 246) 396254477 401070448 «=402 881663 ©400 093 453 1419761 4 436 996 1,468 7596 1.498 172 9.151 486 $477 301 3 389,635 5,228,06710.281 088 14 948 642 16 194 656 18 243 248 16 513 156 36 B43 420 17 180 264 47 523 aga 35 645 730 37 266 362 36 764 579 40 965 208 13 880 393 14,158 001 44441161 14 729 968 fut 997 491 6 628 432 254607001720 74 o731 Case 84 2018 2016 2017 2018 2019 2020 2021 seeeoerecerecee*ESTIMATED BUSBAR COST OF NEW EKLUTNA PLANT **?**ees eeseNetinstalledEstimatedEstid Esti Jd Capaaaty of Energy Reqd Cost of New Cost of New Capital New Piant from Ekluina Vanable Required Projected Eklutna Power Eklutna Power invesiment (kW)Wartsila Plant inlerest Depreciation C&M Fuel Cost Margins Cost (SiMWh)(S/kWh) 250,800,000 162.222 714 974 628 13 794.000 7.942.000 7 950.518 $0,173 208 2 069,100 81.928 B26 $114.6 $0.11459 0 162 222 726 920 248 13,624,336 7,942,000 8.164 187 §1 521,605 2.028.650 83 180,778 $114.4 $0.14443 0 4162 222 739,045 051 13.239.841 7,942 000 8 383.366 52.904.779 1.985.976 84,455 962 $114.3 $0.11428 0 162.222 7§1 381.72?12 939,698 7,942 000 8 608,197 $4,.323.614 1,940,955 85,754 464 $114.1 $0.11413 0 462 222 763,843,003 12 623.048 7.942 000 8 838 822 §5 779 015 1 893 4§7 87 076.342 $114.0 $0.11400 [)162 222 776 521 648 12,288,982 7,942,000 9.075.368 57 271,912 1,843 347 88.421.629 $413.9 $0.11387 Q 162.222 789.390.473 11 936,542 7 942 000 9.318.047 $8 803.255 1,790,481 89 790 326 $113.7 $0.14375 75 Case #5 $5.81/mmBtu Gas Cost (RIRP 2015 Estimate Less 25%);3X Multiplier for Diesel 76 Case #5:$5.81/mmBtu Gas (RIRP 2015 Estimate Less 25%);3X Multiplier for Diesel Rotail Rate Projection (SxWh) Sales Revenue per kWh Sold (Annualized) Cost of Power Projection {Sawn} Source Chugach Electric Association,Inc. (Includes assigned hydio) New Eklutna Generating Piant Bradley lake Hydro Ekiutna Hydro Overall 2014 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 0.1490 01617 01669 01727 01578 01612 0.1638 01664 01685 01712 0.1730 2041 2012 2013 2014 2015 2016 2017 2018 2019 2020 2024 0.09549 0.09836 6.16131 0.10435 0.09705 009671 009638 0.09606 009574 0.09543 009512 004492 004582 0.04674 004767 0.04862 0.04960 005059 000591 000609 000627 000646 000665 000685 000706 009040 009026 009012 0.08999 008986 0.08974 0.08961 77 income Statement -Distribution Case #5:$5.81/mmBtu Gas (RIRP 2015 Estimate Less 25%);IX Mulupiier for Diesel 2014 2012 2013 20%4 2015 2016 2017 Sales Revenue 103.570 177 114.430 400 418 545 345 125 $70.768 116 459.471 320,764,214 124,570,627 Other Electnc Revenue 2 356 860 2 380.428 2 404.233 2 426 275 2452 558 2477 084 2 501 854 Operating Revenue and Patronage Capital 105,827,037 116,510,829 123,949,578 127,999,043 116.912,029 123,241,298 127 072,481 Power Production Expense i)0 0 a 9 i}o Cost of Purchased Power 66,445,308 74 906 320 78.310 813 81.870 039 71,988 764 72.957 277 73941 449 Transmission Expense 33.450 34,119 4 601 35,497 %,207 37.294 36.412 Distnbuton Expense -Operation 3080 316 3:141.922 3 204 761 3 268 856 334.233 3434 260 3537 288 Distnbution Expense -Maintenance 3799 872 3.875 869 3.953 387 4032 455 4513 104 4.236.497 4.363.592 Cansumer Accounts Expense 3 164 232 3,227,847 3,292,067 3,357 908 3.426.066 3.527.818 4.633.653CustomerSamnceandInformationalExpense. 170 $91 174 003 177 483 181.033 184.653 190.193 195 895 Saies Expense i?)fi)0 0 Qo (s]oO Administratve and General Expense 10,668 862 10,882 239 17,099 884 11,321,682 11,848,319 14,894,769 12,251 612 Total Operation and Maintenance Expense 87,362,631 96,241,990 100,073,196 104,067,670 94,630,347 96,278,107 97,961,904 Depreciation and Amorzation Expense 7.790 000 6.383 S16 &.930 360 9 5$7 504 10.272.638 14.078 962 11,907.927 Tax Expense -Property anc Gross Receipts 347 658 360,793 386.505 392 303 398.187 404,160 410.223 Tax Expense -Other 694,743 708 636 722.811 737 267 752 O12 774573 737 810 Interest on Long-Term Debt 5.923 305 6 237,639 6617 452 7 159,828 7.781.202 8 696.637 9,338,469 Interest Charged to Construction (Credit)(33 600){33,660)(34.332)(35 020)(35 720)(36.435)(37 163) Interest Expense -Other 250 123 153.437 125 522 109 875 $8,556 146,848 227,705 Other Deduchons 188 364 192,13)495 974 199 893 203 891 210,008 216,306 Total Cast of Electne Service 102,523,824 112,264,485 197,017 486 422,189,321 114,061,093 147,555,060 120,823,172 Patronage Capital and Operating Margins 3.403.213 4,246,344 4,932,092 5,809,722 4,850,936 §,686,238 "6.249.309 Non-Operating Margins -interast 152.692 158 152 3158 356 196 523 158 694 158,B68 189,045 Alfowance for Funds Used Dunng Construction 12 000 12 240 12 485 WZ.734 12 989 43,249 13 S14 Income (Loss)from Equily Investments id 6 it)9 i)0 c Non Gperatng Margins -Other .(&$28)i7 933)(7 244)(7,463)(7 685)(7,916)£8,153} Generation and Transmssion Capital Credits VG 982 306 DU0 256 000 206,906 2.119 100 2 183.845 2 238 164 Other Capital Crecits and Patronage Oivideoss §75 000 S92 250 616.018 628 318 647 168 666 563 686 S50 Extraordinary ems is}0 Qo 0 [e}fe)3 Net Margins 4,486,059 "§,301.993 $,955,767 6,804,837 7,784,202 8,698,837 9,338,489 2 Beeneacze TIER Target 1.76 +85 1.9 198 2.00 2.00 2.00 Achieved TIER 176 18s +99 195 2.00 2.00 200 Overall Rate Change Required -Current Year 8.57%347%391%-10 00%2.29%V7E6% Overall Rate Change Required -Cumulative (2011 Base Year)BTS 12 04%35 95%594%8 24%10 00% SRF Rate Change (Base Rates Only,No WPCRA)-Current Year 6 58%192%0 2A G 14%329%2 46% SRF Rate Change (Base Rates Only,No WPCRA)-Last Three Years 1?28%14 Ue VE Site Satte 5 68%5G Moditied Debt Service Coverage Ratio -Current Year yier 693 1534 SRR 1550 1576 1889 Modified Debi Service Coverage Ratio -Best 2 of 3 Years 4.639 1.952 1952 4.780 4.733 Equity Ratio 4t5%41.7%at 2%412%40.4%39.9%39.5% 78 income Stat f -Distrib Case #5.$5.81/mmBtu Gas (RIRP 2015 Estimate Less 25%):3X M 2018 2019 2020 2029 Sales Revenue 128 407 SO?$32 010,177 436 119.644 139 624,416 Other Eiectne Revenue 2 576 873 2 882.142 2 57?663 2.603 440 Operating Revenue and Patronage Capital 130,934,375 134,562,348 138,697,307 142,227 856 Power Production Expense [)o is)0 Cos!of Purchased Power 74 944 168 75 956 292 76 $86 644 78 032 014 Transmssion Expensa 39.588 40.752 4atg7a 43,233 Disinbution Expense -Operation 3643 457 3 782 709 3 865 790 3981 249 Drstnbution Expense -Maintenance 4.494 499 4629334 4768 214 4.911 261 Consumer Accounts Expense . 3,742 663 3854 $42 3970591 4.089.708 Customer Serica and Informatona!Expense 207 776 207 629 214 064 220 486 Sates Expense i*)t)[2]9 Admunisirauve and General Expense 12,619,360 12,997,738 43 387 667 13,789,297 Total Operation and Maintenance Expense 99,682,237 101,439,593 103,234,444 105,067,248 Depreciation and Amoruzation Expense 12.700 916 43.505 87&14 333 S64 45.137 203 Tax Expense -Property and Gross Receipts 416 376 422.622 423,961 435,395 Tax Expense -Other 621 744 B46 396 871 788 697 $42 Interest or Long-Term Dent 10,030 651 10 578 496 11-386 679 34864 284interestChargedtoConstruction(Creart){37 907)(38 665)(39 438)(40 227) interest Expense -Other 226,306 228,787 136 933 84 741 Otner Deductions 222 797 229 481 236 366 243 457 Total Cost of Etectric Service 124,063,117 127,209,588 130.589.297 133,690,043 Patronage Capital and Gperating Margins 6,871,258 -*7,;352,730 8,108,009 3,537,813 Non-Operating Margins -interest 159 276 169.410 159 699 159 791 Aliowance for Funds Used Durning Construction 13.784 14 060 14 341 14628 Income (Loss)from Equity fnvesiments .oO 0 oO 8 Non Operating Margins -Other (@ 398)(8 650){8 909)(9 176) Generation ang Transmission Capital Credits 2 287 603 2 329,552 2 363 3y5 2388 477 Orner Capitat Credas and Patronage Deidends TO?VTT 728 393 750 245 772 782 Extraorainary tems 0 0 oO ie} Net Margins 10,030.61 10,575,496 11,386,679 11,864,284 TIER Target 200 200 200 2.00 Achieved TIER 2:00 2.00 2.00 2.00 Overall Rate Change Required -Current Year V.71%144%480%422% Overalt Rare Change Required -Cumulative (2011 Base Year}TWAT,12:18%14 95%16 16% SRF Rate Change (Base Rates Only.No WPCRA)-Current Year pase 1 44S 235%:1 $S% SRF Rate Change (Base Rates Only,No WPCRA)-Last Three Yoa By aie €65%§as Modilied Debt Service Coverage Ratio -Current Year 7 Ps oust 1718 1 686 Modified Debt Service Coverage Ratio -Beat 2 of 3 Years 1750 2026 4.933 4933 Equity Ratio 399%39.9%40.5%40.9% 79 income Statement -G&8T Cose #5:$5.8t¢nmBlu Gas (RIRP 2015 Estimate Less 25%),3X Multiplier for Dieset Sales Revenue Other Elecine Revenue Operating Revenue and Patronage Capital Power Produchon Expense Cost of Purchased Power Transmssion Expense Orsinbuton Expense -Operation Distnbuuon Expense -Maintenance Consumer Accounts Expense Customer Sennce and informatonal Expense Sates Expense Admuinistratwe and Generai Expense Totat Operation and Maintenance Expense Depreciation and Amoniwzaton Expense Tax Expense -Properiy and Gross Receipts Tax Expense -Otner Interest on Long-Term Debt {interest Charged to Construction (Creait) Interest Expense -Oiner Other Deductrons Total Cost of Electric Service Patronage Capital and Operating Margins Non-Operating Margins -interest Allowance tor Funds Used Dunng Construction Income (Loss)trom Equity investments Non Operating Margins -Other Generation ana Transmssion Capital Credits Otner Capitat Credits and Pavonage Divdends Exvraorainary lems Net Margins Operating TIER Target Achieved Overall TIER Equity Ratio 201%2012 2013 2014 2018 2016 2017 0 0 0 f)74,988,764 72,087,277 73.961.449 Q 0 0 0 0 0 0 0 ry 71,988,764 72,957,277 73,941,449 0 6 0 0 45,730,965 46,969 717 48,231 207 Oo 0 o i)2.443 609 2492 573 2 542 424rs°©0 0 0 ° 0 0 0 0 0 6 ° 0 0 e 0 Q 9 ° 0 c 0 0 ry 0 0 0 0 0 0 0 c e c Q 0 0 °0 ° 0 °0 0 8 0 0 0 ry 0 ry 48,183,664 49,462,290 50,773,632 t 0 0 0 7,942,000 7,842,000 7,942,000 &0 0 0 0 0 0F)0 0 0 0 0 o 0 9 0 0 13.794,000 13 $24 336 13.239 Bat c 0 6 o 0 0 6 0 0 Q 0 ry 0 0 0 0 o °a ']0 0 0 0 r 63,919,668 70,928,626 71,955,473 0 0 9 0 2,069,100 2.028.650 1.988.976 0 0 0 0 S000 153164 252788 0 0 D o °0 ¢0 0 °0 0 ©0 9 tt 0 0 o ° 6 0 S 0 0 3 0 oO =2:2 aceszenas 000 000 090 600 145 118 Gon 000 00 cod 116 147 0.0%00%0.0%0.0%0.9%1.8%27% 80 income Statement -G&T Case aS:$5.81/nmBtu Gas (RIRP 2015 Esomate Less 25%);3X M 208 z019 2020 2021 Sales Revenue 7a9a1,168 75,956,202 76,966,644 78,032,014 Other Electne Revenue is}o [s}) [a]gq Ri and P.ge Capital 74,944,168 75,956,292 76,986,644 78,032,014 Power Producton Expense 49 525,242 50,852,648 52,214,274 53,610,989 Cost of Purchased Power 2 $93 273 2645 138 2,698 041 2.752.002 Transmission Expense °°0 [s) Disinbution Expense -Operation ig 0 Go Ly Distribution Expense -Maintenance 0 Py 0 i) Consumer Accounts Expense is}0 Q 9 Customer Service and Informational Expense 0 Q i)0 Sales Expense 0 °Qo [ Admunistraive and General Expense .fa)fs)it}0 Total Operation and Maintenance Expense 52,118,518 53,497 786 $4,912,315 $6,362,990 Depreciation and Amortization Expense 7 G42,006 7,942,000 7,942,000 7 842,000 Tax Expense -Property and Gross Receipts is)0 D)0 Tax Expense -Other 0 0 o a interest on Long-Term Dept 42 939.698 12623 048 42 288 982 14936 542 interest Charged to Construction (Credit)is]f)G ty interest Expense -Other ia)is}o G Otner Deductions Q o 0 i) Total Cast of Electne Senice 73,000,213 74,062,834 75,143,297 76,241,533 Patronage Capital and Operating Margins 4,940,955 1,893,457 4,843,347 4,790,481 Non-Operating Margins -interes!346.645 436.095 $26 047 597.995 Allowance for Funds Used Ounng Construction iv) income (Loss)trom Equity Inves:menis [} Non Ooerating Margins -Other is) Generation and Transmission Capital Credits i Other Capital Credits ano Patronage Dividends ie} €draordinary items.0 Net Margins 2,287,603 Operating TIER Target 146 148 V5 +45 Achieved Overail TIER 116 3148 T19 0 Equity Ratio 37%48%59%70% 81 Combined Income Stat Case #5:$5.8t¢mmBu Ges (RIRP 2015 Esumate Less 25%);IX Multipher for Diesel 2012 2013 2014 2055 2016 2017 Saies Revenve 303,570,177 114 136,400 416 545,345 125,570 768 116.459.4771 120,764 214 $24,576 627 Otner Electric Revenue 2.356 860 2.380 429 2 464 233 2.428.275 2 452 558 2.477 084 2 501 854 Operating Revenue and Patronage Capital 105,927,037 116,510,829 121,949,578 127,999,043 118,942,023 123,241,298 127,072,481 Power Production Expense Qo a it 0 45,736,965 46,969,717 48.231.207 Cost of Purchased Power 66 445 308 74 906 320 78 310 813 81 670,039 2.443.699 2.492.573 2 542.424 Transmission Expense 33.450 34419 34.601 35.497 36,207 37 294 38.412 Distnoution Expense -Operation 3,080,316 3,141,922 3,204 761 3,268,856 3,434,233 3,434,260 3.537 268DistnbutionExpense-Maintenance 2759.872 3675 869 3.953 387 4,032,455 4413,104 4.236 497 4363 592 Consumer Accounts Expense 3 164.232 3.227 $17 3 292,067 3:357,906 3,425,066 3.527.818 3.633 653 Customer Service and informational Expense 170 591 174,003 377 483 461,033 484.683 190,193 195,899 Sales Expense 9 Le)0 L)is}0 9 Aammnistratve and Genera!Expense 10.668 862 10.882 239 11,099.854 14.321 882 14,848.319 13 894 768 12 251612 Totat Operation and Maintenance Expense °97,362,634 96.241,990 100,073,196 $04,067,670 70,825,247 72,783,124 74,734,087 Depreciation and Amortization Expense 7,790,006 8,383,516 8,930,360 9,557 504 16,274,618 19,020,962 19,849,927 Tar Expense -Property and Gross Receipts 347.658 380 793 386,505 392.303 398,187 404,166 410,223 Tax Expense -Other 694.743 708 638 722.811 737 267 752,012 774 573 797 810 Interest!on Long-Term Deot $923,305 6 237.639 6 B17 452 7,189,828 21,576,202 22,223,173 22,878.300 Interest Charged to Construction (Credit)(33,000)(33 660}(34,333)(35.020)(38.726)(36,435)(37 163) interest Expense -Othes 250.123 153 437 125.822 109.875 58.555 146.848 227.708 Other Deductons 166 364 192 131 195.974 +99 693 203.891 210.008 256 308 Total Cost of Electric Service 402,523,824 112,264,485 197,017,486 422,189,321 414,984,993 145,526,440 498,837,196 Patronage Capitai and Operating Margins 3903,213 4,246,344 4,932,092 5,809,722 6,920,036 7,744,888 8,235,285 Non-Operating Margins -interes!182 692 158 192 168 356 158 $23 208.694 342.932 431233 Ahowance for Funds Used Dunng Construction 12.000 12.240 12 485 12.734 42.989 43,249 13.514 income (Loss)trom Equity Investments 0 Oo o o oO a Le) Non Operating Margins -Other (6.828)(7 033)(7 244)(7,461){7 685}(7,916)(3 183) Generation and Transmission Capital Credits 349 9B2 300,060 250,000 200 000 ie]0 o Other Capitat Creauts and Patronage Drdends 576 000 5$2 250 610 018 628 318 647 168 666 583 686 580 Extraordinary tems..oO o 9 9 is}ie) Net Margins 5,301,993 9,338,459 Achieved Overall TIER 176 185 190 195 1%439 y4i Overall Rate Change Required -Current Year 8.57%347%3.91%10.00%2.29%4.76% Overait Rate Change Required -Cumulative (2014 Base Year)8 67%12:08%+S GS%$945 624%10 00% SRF Rate Change (Base Rates Only,No WPCRA}-Current Year §64S 192%241%O14%329%2 48% SRF Rate Change (Base Rates Onty,No WPCRA}-Last Three Years 17 PAs 14 07%TEP 447%§BAX SHI Equity Ratio 445%aim 412%at 2%22.3%22.8%23.5% 82 Combined i:Stat,, Case #5:$5.81/mmBtu Gas (RIRP 2015 Esumate Less 25%);3X Ml Sates Revenue Other Elecinc Revenue ie R and Pat ge Caprtal Power Produchon Eapense Cost of Purchased Power Transmission Expense Oisinduson Expense .Operation Orsinbution Expense -Maintenance Consumer Accounts Expense Customer Sernce and intormatonal Expense Sales Expense Adminisirative and General Expense Total Operation and Maintenance Expenso Depreciation and Amorizatior Expense Tax Expense -Property and Gross Rece:pts Tax Expense -Other Interest on Long-Term Debt Interest Charged to Construction (Credit) interes!Expense -Otvet Other Desuchons Totat Cost of Electric Service Patronage Capital and Operating Margins Non-Operating Margins -inlerest Allowance for Funds Used Dunng Construction Income (Loss)from Equity Investments Non Operating Margins -Other Generation ang Transmision Capital Creaus Otner Capnal Creats ang Patronage Divicenos Extraordinary Items Net Margins Achioved Overall TIER Overati Rate Change Required -Current Year Overall Rate Change Required -Cumulative (2011 Base Year) SRF Rate Change (Base Rates Only,No WPCRA}-Current Year SRF Rate Change (Base Rates Onty,No WPCRA)-Last Throe Yea Equily Ratio 2018 2019 2020 2024 126,407,502 132.010 177 136.119644 --139,624.416 2626 873 252 142 257.663 2.603.440 130,934,375 134,562.318 138,697,307 142,227,856 49,525,242 50,852,648 52.214.274 53,610.989 2.593 273 2645 338 2 698,061 2 752.00239.566 40 752 41.974 43.2333,643,407 3,752,709 3 865,290 3,981,249 4454 495 462934 4768214 4011 261 3742 663 3054 942 3.970.591 4.089 708 201,776 207 829 214,064 220,486 0 0 0 C) 42.619 160 12 967 735 13 387,687 13-785 297 76,859,584 78,981,088 81,160.11 83,398,225 20,642,018 21.447 878 22.275 964 23,070,203 416 376 422 622 428,961 435 305 821 744 846 396 871 788 897 942 22,970,350 23-198 544 23.675 661 23,800 826 (37 907)(38,665)(39 438)(40,227) 226 300 228 787 136 933 Bara 222.797 220 451 236 366 243,457 422,122,162 125,316,131 «128,748,950 131,889,862 8.612.213 9,246,187 9,951,357 90.328,294 $05 B74 596 505 679.646 757 786 13784 14 060 14341 14626 0 Q °9 (8 348;(8 580)(8 909)(9 176) 0 g F)0 TOT177 728 393 750 245 772,782 0 0 9 e 10030651 ---10.575.496 11,864,284 a zz a oe sersescz: 144 146 148 140 171%1.44%180%122% Was 13 19%14 9b%16 18% Tas +ay 225%159% arr 6 oT,ts SHON 244%25.2%26.3%272% 83 Bal.Shoet-DistributiCase#5.$5.81/mmBtu Gas (RIRP 2015 Esumate Less 25%};3X Multipiler for Diesel Utikty Plant in Service Construction Work in Prograss Total Utity Plant Less'Accumutated Provision for Depreciation and Amortization Net Ututy Plant Ones Property and Investments Cash Short Term Investments Other Current and Accrued Assets Current and Accrued Assets Deterres Dents Total Assets Memberships Patronage Capital -Beginning Curent Year Capital Creait Retirements Current Year Net Margins Othe:Margins and Equites Total Margins and Equittes Gross Long-Term Debt Less Portion Que Within One Year Net Long:1erm Debt Other Non-Current Liabines Short Term Line of Creat Current Potton -Long-Term Deot Diner Current and Accrued Liabimes Current and Acct ved Liabilines Deferred Creans Tota!Lapdthes and Equines 2044 2012 2043 2014 2018 2016 2017 312669 801 «=330.179 8Ot «=354315276 «=378.355.270 «408 744.008 «=4K0.044 408 =472.28 3.8206.452 795 6.581.769 6 713,404 6.847 673 6 984 626 7124319 7,266.805 316122,516 -326,761.570 36 1,078.680 «385,202,943 415726634 ©447,168726 ©-479,550,625 (122,.831.440)(133 498670)(143.589.9556)(154.496.936)(166 220000)(178863260)(192 452.531) 195.281.076 203.362 $00 «217,438,724 «230,706,006 ©249508,634 =.268 305466 «287 098.093 21,256 536 25 988 786 22.648 804 23,277 122 25.843.389 28,491,787 31216 531 409.620 417 812 426.168 434.692 443.386 452.253 461 298 0 0 0 0 C)0 r) 18,324 134 18 690,616 19,064 429 19,445,717 19.834 632 20 231,324 20 635.951 18.733 754 78 108 429 19-490 597 19,680,409 2O278 017 20,683 578 21,097,249 5 184 287 $257 342 5 362.489 §469,739 5 575,133 5 690,716 5 804 530 240,475,622 249,717,456 264,440,614 -«-279,333.276 323171547 345.216 464 ::==zs se aeeneeees 239 675 244,468 249,367 258 344 269.431 264 620 269.912 9?335 933 9£939 166 100 261 788 105.234677 =110.984 167 «197 656.527 124.589 $30(882,406)(959 392){1.002 816)(1 052.347)(1.109.842)(1,764,833)(3,868 843) 4 486,059 5,301,993 5.955.707 6,801,837 7,781,202 6 698,837 4 338,455 3587 412 3659 161 3732 386 3.806 991 3.883.131 3.960.793 4.040 G08 99,766 273 106 185416 =109 216.378 «=148045502 «121.798069 «=128814943 «136 369.068 106883449 «112 268.971 122827184 «=132.562.3394 -143,566301 154.6 78.131 168 633 652 (5.120 478)(4 228 072)(4.383.846)(7 229,276)(668 410)(5.408,126)18,560 312) 301,762 971 108040699 ©:138 138.338 126.3330S8 138.897 691 149 270.005 160 053.540 4 229 022 1.253 603 1278675 1304 248 +330 333 1356 940 1 384.079 6 137 464 5,020,864 4,356,002 2,342,249 $873,930 9,108,201 9.052 007 5.120 478 4 228.072 4383 446 7 229 276 7 668 410 5.408 126 8 560 312 14.375 696 14 663 210 14.956 475 55 255 604 18 560 716 18871 930 16 189 369 25,633,638 23,912,146 23735 223 4 627 129 29,103.05 30,388 258 33 801 638 12.083 718 12.325 392 12.577 900 12 823 336 13.079 805 13.341 401 13 606 229740.475 622 301 208 84 14 27S 333 276 323 171 547 345 218 404 Balance Sheet -Distribution Case #5:$5.8t/mmBtu Gas (RIRP 2015 Estimate Less 25%};3X M 2018 2019 2020 2021 Utifity Plant in Sernce $00 570 919 §33 506 Gat §63 $16 724 $94 426,801 Construction Wark in Progress 7 Al2.1484 7,560 384 771592 7 865,823 Total Usity Plant 507,983 060 $41 067 325 $71,278 316 602 292.624 Less Accumutated Provision tor Depreciation and Amortization (206 $46 760}1222 359 606)(238 717 003)(255 993 509) Net Utday Plant 30!936 306 318 707 779 332 $1113 B46 305.158 Other Property and Investments M4011 Bit 3 869 256 39 782 896 42 744124 Cash 470.524 479,935 459,534 499 324 Snon-Term Investments o is}0 L¢) Other Current and Accrued Assets 21 048.670 21 469.643 21,899 036 22337 017 Current and Accrued Assets 21 819 198 21 $49,576 22 388,570 22,836 341 Deferred Deons §9206621 6 039 033 6 159 814 6 283 010 Tota Assets 383 565 587 400 842 S92 416 164691 Memberships 275.311 280,617 286,433 292.162 Patronage Canial -Beginning 132 059,146 440 108 950 248.582 772 157 740 710 Curren:Year Capial Creda Retirements (9 980 887)#2 101 634}(2.228 742)43 184 B14) Current Year Net Margins 10,030,651 10,575 496 $1,386 679 11,864 284OtherMarginsandEquities41208094,203 v2 4 287 290 $373 036 Total Margins and Equites 144505030 153066814 62314433 9 111115377 Gross Long-Term Dedt 477,028 600 4€2,580,085 202,048 279 208,069,097 Less Porton Oue Within One Year (4 207 158)(&$37 646)19 434 220){14,490 988) Net Long-Term Deodt .472.818 462 184 042 409 192.614 055 196.958 109 Other Non-Current Liabutes V4ty 761 1.439 996 1.468 T96 1498472 Snon-Term Line of Crear §161 486 $.477 301 3.569 635 §228,067CurentParton-Long-Term Debt ADOT 158 8537 645 G 434 270 $1110 968 Othet Current and Accrued Liabities 96.513 156 16 863 420 17 180 268 17 523 694 Current and Accrued Liabuies 25 874 601 30 858 367 30.004 143 33 B62 S48 Deferred Credits 43 680 343 14 158 001 14 726 984 Total Liabilities and Equites BO2 487 43:416 164 5915483S65587 85 Balance Sheet -G&T Case #5:$5.81¢mmBt Gas (RIRP 2015 Esumate Less 25%);1X Multiplier for Diesel Uttity Plant in Sernnce Constructon Work in Progress Total Unity Piant less:Accumulated Provision lor Depreciation and Amornzaton Net Ututy Plant Otner Property and Investments Cash Shorl-Term Invasiments Other Current and Accrued Assets Current and Accrued Assets Defetred Debits Total Assets Memberships Patronage Capital -Beginning Current Year Gaptat Credit Retirements Current Year Net Margins Ciher Margins and Equites Total Margins and Equites Gross Long-Term Debt Less Porton Due Within One Year Net Long-Term Debt Otner Non-Current Liabiines Shon Term Line of Creda Current Porton -Long Terr Debt Other Current ang Accrued Liabiites Current and Accrued Liabhbes Delerred Crenits Total abies and Equites 20t1 2012 2013 2014 2018 2076 2047 9 0 o @ -250600.000 250.800,000 --250.800.000 0 is]o 0 0 Co 0 0 0 0 0 250600000 250800000 --250 800.000 Q f?)0 9)17 942 000)(1§884 000)(23 826 000) 6 ry 0 G 242858000 234916000:226 974 000 0 0 0 ©0 o 0 Q 9 0 0 50 000 50 000 $0,000 0 0 0 0 5,108.22:10,059,306 14,782,423 0 0 0 0 0 0 ° G f?)a i')$158 222 10 106 396 14.832 423 6 6 i)G is) 0 248 016.222 245 O25 396 :2 srzaceare 4 o 0 i)100 109 100 id fal it]i?)G 2 138 100 4300 915 id}oO Q 0 0 [a]ts)P)0 r)0 2119 100 2,181,815 2,238,164 fe)oO °f?)°[¢)(3) Q fe)Le)0 21419.200 4301 015 6 $39 179 c a 0 O =245897027 «240.724.381 -«-238 DBT 244 0 Oo ie)i*](5 172 644)(8.4897 437){$787 279) 6 ty)fe)is}240 724 381 235 267 244 229 509 965 c 0 0 0 ©r)0 a 0 0 c 0 0 0 c c 0 co 5,177,641 5.457137 5.787 279 0 Q 0 G 0 0 0 eeco ry 0 5 172 641 §457 137 $757 279 0 G 9 0 6 0 245 025 366 86 246 056 222 aire 241 806 423 Bene cad Balance Sheet -G&T Case 3:$5.81/mmBtu Gas (RIRP 2015 Esomate Less 25%);3X M Utity Plant in Sennce Construchon Work in Progress Totat Utinty Prant Less Accumulated Provision for Depreciation and Amortization Net Unity Plant Other Property and Invesiments Cash Short Term tnvestments Otner Current and Accrued Assets Current and Accrued Assets Beferred Debits Total Assets Memberships Patronage Capital Beginning Current Year Capita!Crean Retrements Current Year Net Margins Other Margins and Equities Total Margins and Equites Gross Long-Term,Debt Less'Porton Due Within Gne Year Net Long Term Deot Other Non-Current Liatanies Short-Term Line of Creat Current Porton -Long.Term Dept Othe Current and Accrued Liabitives Current and Accrued Liatites Deterred Credits Tota!Liabuites ang Equiws 2018 2019 2020 2021 250 806 000 250 800,000 250.800 000 250,600 600 o te)o 0 25 800 000 250 800 000 250 800 900 250 890 000 131 768 900)(39 710 000)(47 657 000)(55 594 000) 219 032.000 217 090 G00 203 148 000 495 206 000 Qo 0 td 0 50 000 50,000 50.000 50 000 19.254 747 23 452 369 27 349,768 30 919.809. 9 0 9 ) 1%304 747 23 502 469 27.399 766 30 BGs BOS 0 ie]t')Qo 236 336 747 234 592 3469 400 100 100 100 6539 079 8 B26 GE?44156 234 13919.629 0 0 °0 2 287.603 2 329,552 2,363,395 2 388,477 D Py 0 ° 8626782 =114:185 334 43 519 728 15.908 206 22$509.065 -223.436.035 «217528038 =-210.267.6G16073630)(6 407 996;(6 760 436)(7 132.260) 223436035 217 026039 ©210 267604 «=-:203.135 344 0 ")0 ° °)0 0 £073,535 6.407 996 €760 436 7 132.260 0 0 0 0 6072530 =407 906 €760 436 7432 e °c ¢ 238 33H Fa? 87 Combined Balance Sheet Case #5:$5.81¢mmBtu Gas (RIRP 2015 Esumate Less 25%),3X Multiptier for Dieset Utdty Plant in Serwce Constructon Work in Progress Total Ubaty Plant bess.Accumulated Provisian for Depreciation and Amonuzaton Net Uulity Plant Other Property and Invesiments Casn Short-Term Investments Otner Current and Accrued Assets Current and Accrued Assets Deferred Debits Tota!Assets Memberships. Patronage Capilai -Beginiung Current Year Capilai Cracit Retirements Curent Year Net Margins Othe:Margins and Equives Totai Margins and Equities Gross Long-Term Debt Less'Portion Due Within One Year Net Loag Term Debt Otne:Non-Current Liabiibes Short-Term Line of Credit Current Poruon -Long-Term Debt Othe:Current and Accrued Liabilities Current ang Accrued Liabilities Delered Credits Total Liadtittes ana Equites 2014 2012 2013 2014 2015 2016 2017 312609801 «935179801 «354318276 «STE SE270 ©GSH 5AA008 «=EBD Baa 408 §«=--723.083.820 6.452715 6 581 76%6 713 404 6 847 673 6 684.626 7.124 319 7 266,805 318122516 33u,761570 BAT 025680 385.202 943 668578634 697,966,726 --730.950,625 (123,831.446)(133398670)(143 $89.956)-(154,496.936)(174 162000)1194.747.260)(216.278 531) 195.291076 203 362900 -217,438778 ©230706006 «492566634 «5032721466 ©534072 085 21206535 -21986,786 =224A ROA «=282771222724 2BD_24 1GUB72_--24 77,452 409.620 417 B12 426.168 434 692 493,386 $02,253 514,298 0 °)a 0 5.108 222 $0058.396 =14.782 4233832613698,.690616 19.064.426 19445717 198M 632 20.231.324 20.635.951 V8735754 «=1 108.a29 «19.450 897 19880408 =25.836.240 ©30702975 «35.629.672 5 154 257 £,267 42 5 367 439 5 469.739 5 579.153 $,690 716 5 804 530 240475622 ©49.717 456-264 940 563896027 580483 748 :oe 2st sieseaets 0 ee : 239 675 244 468 249 397 284 344 259531 264 720 270 012 92.538,533 95 939186 =100.281 AB =108.234.8677 110984 BT =117655.527 124 $89 530(802,408)(950,392)(1,002,818;1,052,347)(4,100,842)(1,784,833)(1,868,843) 4 486 059 5.361.993 5 955 707 6801 837 7 7at.202 8 698 837 $338 459 2587 412 2656 163 3732 34a 3.806 991 3.983 131 3.960.793 4 020 008 09.766 273 104.785 416 =109.216 378 «=118045.502 «121,796.18 «=-126.818043 136 358 168 106883449 112268971 127 S22 184 =132.562.954 -«389.483323 «305402511 403.880 896 (5 120.478)(4228072)(4.383846)(7,229.276)-112.849052)(10.865.263)(14.317 S61) 1017671 =408.040689 778138338 «1728333088 «=S7ES22z71 «=364537243 «©389.582 305 4226022 +293.603 1278675 1308 248 1336,333 1 356.940 +34 079 6137 464 5 020,864 4 398,062 2.382.286 5,673,030 9,108 201 9,082,097 $120 478 4728 672 4 383.846 7229276 12.841 082 10865.263 44317.55114378696=14863250 14.956 475 18255608 4 80716 15877930 16 189 369 25693638 ©23912146 «24735323 24 827126 G4 T786SR |S BAS 3Ge |=39 55a BET "2083718 1 3v8 s82 12673 338 13.078 8¢S 13341401 13 608 226 240478622 Tad 7T17 a56 F7GB33 276 «=$47 106 206 ©589 89S O77 «=SRO ABS 748zeeprevazrse=-aevereres 9 eserracea 88 Combined Balance Sheet Case #5:$$.8%/¢mmBtu Gas (RIRP 2015 Estmate Less 25%);3X M Utihty Piant mn Senice Construction Work in Progress Total Ubity Plant Less:Accumulated Proviston for Depreciation and Amortization Net Uulty Piant Other Property and Investments Cash Short-Term Investments Other Current and Accrued Assets Current and Accrued Assets Deferred Debits Total Assets Memberships Patronage Capital -Beginning Current Year Captal Creat Retrements Current Year Net Margins Other Margins and Equites Total Margins and Equites Gross Long-Term Debt Less Porton Que Wahin One Year Net Long-Term Dept Other Non-Current Liabiites. Shon:Term Une of CreditCurrentPortonLongTerm Debt Other Current ang Accrued Liabiitres Cuttent aod Accrued Labiihes Deferred Credas Tota!Liabhbes and Equines 2018 2019 2020 2024 75%.370.919 784 306 S41 B14,316.724 845.226 801 Fai?141 7 560 384 7744 $92 ?865 823 758 783,060 791 BE7 325 822 028 316 853 092 624 (238,714 760)(262.069 606)(286 369.003)(314 885.509) 520 068 300 526,797 719 §35.659 343 $41$07.415 25,184 629 28,713,022 26,263 267 26,836,016 $20.524 529.935 539 534 549.324 19,254,747 23,452 369 27 349,768 30,919 809 21048 670 21 469.643 213,839 036 22.337 O17 40.823 941 45.451 947 49 788.338 $3,806 156 §,920.621 6 039,033 6,159,814 6,283,016 607 O01 722 626,432,294 275 ail 280 917 266.533 292,262 132.059 146 140 166 910 148 562 772 187 740 710 (1 980 887;{2 101 634){2 228 742}(3.154 814) 10 030 651 10,575 496 11,386,679 14 B64 286 4120 BOO 4203 225 4 267 290 4373 036 144 505,130 153.066 914 162 314 $32 T7418 477 496 $35,565 446,016 090 419.076,378 418,336,701 (10.281,088)(14,945 642)(16,194 656)(18,243,248) 396.254 477 401 070 448 402 881 663 400,093.453 T4401 761 1 435 996 1.468 796 1498.972 @ 161 486 §477 301 3389 635 §226 067 40 283 088 14 985 G42 16,104,656 18,243,248 16 $13 156 16 B43 420 17 180 288 1?$23.894 36 948730 37 266 362 36 764 579 40 995 208 $3 B50 2923 4 188 O07 14 447 161 14 729 984 GT H7O 731$91,997 49] 89 626 432 204 Case #5 2015 2016 2017 2048 2019 2020 2021 Net installed Estimated Capacity of Energy Req'dCapitalNewPlantfromEklutna investment (kW)Wantsila Plant 250 800.000 162.222 714,974,628i)162,222 726 920,248 &162.222 739 045.051 0 162,222 781,354,727 G 162,222 763 843,033 0 162,222 776,524 648 0 162,222 7EY 390 473 cecereseecereee*ESTIMATED BUSBAR COST OF NEW EKLUTNA PLANT **3"oc eeeerss interest 13794 000 13,524,336 13 239.641 42,939 698 12 623 048 12,288,982 11-936 542 7,942,000 7 942 000 7,942,000 7.942.000 7,942,000 7 942.000 Esti Ps Een,d Cost of New Cost of New Vanable Required Projected Eklutna Power =Eklutna PowerO&M Fuel Cost Margins Cost {SIMWh)(S/kWh) 7.950.518 37.629 906 2.069 100 69,385,524 $97.0 30.09705 8,164,187 38,641 204 2.028,650 70,300,377 $96.7 $0.09671 8.383 366 39,678 584 1.985976 71.229.768 $96.4 $0.09638 8.608.197 40 742,710 1,940,955 72,173,561 $96.1 $0.09606 6.838.822 41834 261 1,893 457 73.131.589 $95.7 $0.09574 9,075,388 42,953,934 1,843,547 =74,103,651 $95.4 $0.09543 9.318.067 =44.102.441 4.790.481 75 089,512 $95.1 $0.09512 90 Case #6 $8.91/mmBtu Gas Cost (RIRP 2015 Estimate +15%);3X Multiplier for Diesel 91 Case #6:$8.91/mmBtu Gas (RIRP 2015 Estimate +15%);3X Multiplier for Diesel Retail Rate Projection (Sw) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Sales Revenue per kWh Sold (Annualized)0.1490 01617 01669 01727 01850 0.1887 0.1917 0.1946 0.1970 02000 0.2022 Cost of Power Projection iSkWh) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: Chugach Electric Association.tnc. (Includes assigned hydro)009549 0.09836 0.10131 ©10425 New Eklutna Generating Plant 012512 0.12506 012501 0.12498 0.12495 0.12493 0.12492 Bradley Lake Hydro 0.04492 004582 0.04674 0.04767 004862 004960 0.05059 Eklutna Hydro 000591 000609 000627 000646 000665 000685 000706 Overall 011560 0.116875 0.141592 0.11609 0.11626 011644 011662 92 income Statement -Distribution Case %6:$8.91/mmBtw Gas (RIRP 2015 Esumate +15%):2X Muluptier for Diesel 2014 2012 2013 2014 201s 2016 2017 Sales Revenue 103,570,977 114 130,400 19 545,345 425,570,768 136,528 754 141 372 856 145,732 538OtherElecincRevenve235686023804292.404 233 2426 275 2452 588 2.477 084 2 503,854 Op ig Ri:and P;go Capital 105,927,037 116,510,829 921,949,576 127,999,043 138,981,312 143,849,940 148,234,392 Power Production Expense [)C)°o t')0 Ls)c Cost of Purchased Power .66 445 306 74 906 320 78 310 813 81.870 039 92.058 047 93 565919 §5.103,360TransmssionExpense33,456 34119 34 801 3S 497 36 207 3?294 38.412DistnbutionExpense-Operation 3980 316 3.144 922 3.204 761 3 268 56 3334 233 3.434 260 3537288 Oistndution Expense -Maintenance 3,799,872 3 €75 B69 3953 387 4032 455 4133 104 4736 497 4.363 592 Consumer Accounts Expense 2,164,232 3.227 517 3 232 067 3.357 908 3425066 3527 618 3.633.653CustomerServiceandInformationa:Expense 170.591 174.003 177 463 981.033 184,653 190 193 195 899 Sales Expense 0 [)fs)0 0 (¢)is) Aaminstatve and General Expense 10.668 862 10 B82 239 11.999 584 11321 882 11 §48.319 11 894 769 12.251 612 Total Operation and Maintenance Expense 87,362,631 96,241,990 900,073,196 104,067.670 114.699,.630 116,686,749 119,423,816 Depraciaton and Amonization E-pense 7,790,000 8 383.516 £3 30.366 S57.504 1G 272 618 11 078 962 11907.927 Tax Expense -Property and Gross Receipts 34?658 380 793 386 $05 392,303 398 487 404 160 410.223TaxExpense-Other 694 743 738,638 722,811 737 267 752.012 774573 797 810interestonLong-Term Deot §923 305 6 23?639 6 617 452 7 189 828 7 781 202 8 696 837 9.336.459 interest Charged to Construction (Credit)(33.000)133 660)134,333)(35.020)(35 720)(36.435)(37 163)Interest Expense -Other 250,123 143,437 125 $22 109.875 58.556 346,848 227,705OtthetDeouctions186364192131195974199893203,691 210 G08 216 308 Total Cost of Electric Service .102,523,826 192,264,485 197,017.486 122.169.324 134,130,376 136,163,702 144,985,084 Patronage Capital and Operating Margins.3,403,213 4.246,344 4,932,092 $809,722 4.860.936 5,686,238 6,249,309 Non-Operating Margins -Interest 152 692 158,192 158,356 158,523 158,664 158 868 159 045 Allowance for Funds Used Dunng Construction 12 006 32 240 42 485 12734 12 989 13.249 313514Income(Loss)from Equity Invesiments i)(*)(t)[e)0 Q 0Nor,Operating Margins -Other (6,228)(7,033)17.244){7,461)(7,585)(7 918)(8 153)Generation and Transmission Capital Credils 349 962 300 006 256 00C 200 00C 2.113.100 218185 2 238.164OtnerCapitalCraaitsandPatronageOvidends§75 000 $92 250 610.018 628 318 647,168 666.583 686 580Extraordinaryitemsie}bal 0 9 °(°)fe] Net Margins 4,486,059 5,301,993 $.955 707 7,781.202 8.698.837 wede nee ee bizleeee re 'vrvragsre = TIER Targot 1.76 485 190 195 200 200 2.00AchievedTIER1761.85 4.90 1.98 2.00 2.00 200 Overall Rate Change Required -Current Year 857%347%3.91%8.26%2.51%198%Overall Rate Change Required -Cumulatrve (2011 Base Year}57%32 O45¢18 95%24 20%26 71%28 68% SRF Rate Change (Base Rates Only,No WPCRA)|Current Year 5 6R%1.9200 241%©14%229%248SRFRateChange(Base Rates Only,No WPCRA)-Last Three Years 14.26%$4 02"Lister oar 5 bane b.gs Moditied Debt Service Coverage Ratlo -Current Year 1652 1921 1963 1650 1578 1 88S Modified Debt Service Coverage Ratio -Best 2 of }Years 1839 1952 1952 1780 1.733 Equity Ratio 415%ar7%442%412%40 a%399%39.5% 93 h Statement -Distrib Case #6:$8.91/mmBtw Gas (RIRP 2015 Estimate +15%);3X Mulup Sales Revenue Other Electnc Revenve oO ing R and P.ge Capital Power Production Expense Cost of Purchased Power Transmission Expense Distrbution Expense -Operation Distrbuton Expense -Maritenance Consumer Accounts Expense Customer Senace and Informationat £«pense Sates Expense Admimstratve and Genera!Expense Totai Operation and Maintenance Expense Depreciation and Amortization Expense Tax Expense -Property and Gross Receipts Tax Expense -Other Interest on Long-Term Debt Interest Charged to Construction (Credit) interest Expense -Other Other Deductons Total Cost of Electric Service Patronage Capital and Operating Margins Non-Operating Margins -Inierest Adlowance for Funds Used Dunng Construction Income (Loss)from Equity Investments Non Operating Margins -Other Generation and Transmission Capital Credits Other Capitat Credits anc Patronage Dividends Extraordinary ftems Net Margins TIER Target Achieved TIER Overall Rate Change Required -Current Year Overat!Rate Change Required -Cumuiative (2011 Base Year) SRF Rate Change (Base Rates Only,No WPCRA)-Current Year SRF Rate Change (Base Rates Gnly.No WPCRA)-Last Three Yea Modified Debt Service Coverage Ratio -Current Year Modified Dett Service Coverage Ratio -Best 2 of 3 Years Equity Ratio 2018 2019 2020 2021 150,136 S47 154.321 783 159 028 408 163 145.718 2526 873 2552 142 2577 663 2603 440 152,663,820 156,873,924 161,606,071 165,749,158 0 0 0 a 96.670 633 S&267 B96 95.895.409 101.553 316 39.565 40 752 41974 43,233 3,643,407 3.752,709 3 865,290 3981 249 4 494 499 4 629 334 4768 218 4913.261 3.742 663 3.854.942 3.970 591 4.089 708 201 776 207 823 214.064 220.486 o 0 0 r) 12,619 169 12.997 735 13,367 667 13,789.297 124,413,683 123,751,399 126,443,209 =128,588.550 12,700 938 13 505 876 14,333.564 15 137,203 416 376 422 622 428 961 435.395 821,744 866 396 871,788 697,942 10,030 651 10 $75 496 11.386 679 11 864 284 (37 907)(38 665)(39.438)(40,277) 276 300 228,787 136.933 34741 222 797 229.481 236 366 243 457 145,792.562 149,521,194 183,498,062 187,211,345 6871258 |7.352.730 '8,108,009 6.537.813 159,226 159,410 159.599 159,791 13 784 14 066 14.342 14628 0 Q 0 9 (8,398){8,680}(8,909)(6.176) 2 287 603 2 329 $82 2 363.395 2388477 rile bars 728 393 750,245 772:752 °0 0 0 10,030,651 40,575,496 200 2.00 2.00 2.002.00 200 2.00 2.00 193%166%2.02%1.44% 30 61%34 29h,35 73% 73st 238%159% bi.665 5 BSS, 161?2184 iret)1 B86 1750 2.020 1.933 1933 33 9%39.9%40.5%40.9% 94 income Statement -G&T Case #6:$8.91/mmBtu Gas (RIRP 2015 Esti 915%);XM for Diesel 2014 20t2 2013 2014 2015 2016 2017 Sales Revenue b]Qo Ee)te)92,058 047 $3,565,919 95,103,360 Other Elecine Revenve i)io]Li)°G i) o g Ri and P.ge Capital °Q iy 0 92,058.047 93,565,919 96,103,360 Power Production Expense Q G i')is}65,806,248 67 578,359 69.393 1415 Cost of Purchased Power iy it}G i)2 443.659 2.492 $73 2.542 424 Transmission Expense ft)t)te)te)a 0 9 Distnoubon Expense -Operanon 0 0 ft)[3]9 0 ie] Distnbution Expense -Maintenance o G 0 6 te)0 ¢ Consumer Accounts Expense i]0 tt)[e]te)0 is) Customer Service and Informational Expense 0 Q oO fe)Qo i)Q Sales Expense id )o )Q é 6 Aamunistratve and General Expense 0 t)0 6 ie)o i) Total Operation and Maintenance Expense °Q )0 68,252,947 70,070,932 71,935,543 Depreciatron and Amonizaton Expense ie)i)o Go 7 $42,000 7,942,000 7 942.000 Tax Expense -Property and Gross Receipts °()6 a i)G te] Tax Expense -Other o i)ie)0 6 i)[) Interest on Long-Term Debt Q i}o o 13:794.006 13.524 336 13 239,641 Interest Charged to Construction (Credit)i}it]0 0 0 i i?) Interest Expense -Other if i)Qo i)Ls)9 Q Oiney Deductions 0 i)3 te)o o i Total Cost of Eleciric Service (g td)o o 88,985,947 91.537.268 93,117,384 Patronage Capital and Operating Margins 0 )0 0 2,069,100 2,028,650 1.985.976 Non-Operating Margins -interest i 0 is)0 50.000 153.164 252,188 Allowance ter f unds Used Durning Construction ie]()i]te)Q Income (Loss)trom Equity Investments °0 [s)0 [¢] Non Operating Maryins -Other °fe)fe)is}o Generation and Transmission Capital Credits 0 0 ie)Ga Qa Other Capita!Credits and Patronage Dividends 6 ig fe)it)6 Extraordinary Hems is}9 [s}0 9 Net Margins 0 8 )9 =>at ==s Operating TIER Target 009 rome)ooo 000 148 tts AS Achieved Overail TIER oac G00 cu boo 115 146 VAP Equity Ratio 00%00%00%oo%0.9%1.8%27% 95 income Statement -G&T Case #6:$8 9t/mmBtu Gas (RIRP 2015 Esumate ¢15%);2X Muitp 2018 2019 2020 2021 Sales Revenue 96.6/0,613 96.267 BYE 99.695.409 101,$53,316 Other Electne Revenue 6 Q 0 i} Operating Revenue and Patronage Capital 96,670,613 98,267,898 99,895,409 901,553,316 Power Producton Expense 74,258,687 73-164 254 78,123,038 7?432,294 Cost of Purchased Power 2693 273 2645 138 2 698 O41 2 782 002 Transmission Expense ©Q id i Drsinbution Expense .Operavon 6 0 i) Oistnbwtion Expense -Maintenance i*)ES)9 0 Consumer Accounts Expense is 0 0 ° Customer Service and informatonal Expense .i)0 is}i') Sales Expense oO is)6 oO Aaministratwve and Genera Expense 9 0 9 i) Tatal Operation and Maintenance Expense 73,847,960 78,809,352 77,821,079 "79,884,292 Depreciation and Amoruzanon Expense 7942 G06 7,942,000 7 942.000 7,942 000 'Tax Expense -Property and Gross Recentits o oO i 0 Tax Expense -Other [¥)ie)0 0 interest on Long-Term Dent 12,939 598 12 623 048 42 288 S62 14536 $42interes!Charged to Construction (Credit}o (e]ie}0 interes!Expense -Other G is)0 0 'Otner Deductons is)te]ie)6 Total Cost of Electric Service 94,729,659 96,374,440 98,052,061 99,762.844 Patronage Capital and Operating Margins 1,940,955 1,893,457 4,843,347 1,790,481 Non-Operating Margins -Interest 346 G46 436 095 520 047 597 956 Allowance for Funds Used Dunng Construction ie]i) income (Loss)from Equity Invastmenis it}(e] Non Operating Margins -Other ie)by) Generaton and Transmission Capita!Creaits i)0 Otrer Capita Credits and Patronage Dividends 0 6 Extraordinary terns i?)te) Net Margins 2,329,582 Operating TIER Target 145 115 115 148 Achieved Overall TIER 148 118 119 120 Equity Ratio 37%48%$3%7.0% 96 Combined I,Spat ' Case 86.$8.9f:mmBtu Gas (RIRP 2015 Esumate +15%),3X Mutupher for Diesel 2094 2032 2013 2014 2015 2016 2017 Sales Revenue 103570177 194,130,400 119,545.345 128,870,768 136,528,754 141372856 145,737,598OtherElectncRevenve2-356 860 2 380 429 _2.404 233 2 428.275 2.452 $58 2477 084 2.501 854 Operating Revenue and Patronage Capital 905,927,037 116,510,829 121,949,578 127,999,043 438,984,312 143,849,940 148,234,382 Power Production Expense 0 is]i)0 65 809,248 67,578,359 69,393,119CostofPurchasedPower66444.308 74 906 320 76310813 81870039 2 443.699 2,492,$73 2 542 424 Transmission Expense 33.450 4119 34 801 35.497 3%207 37 294 38 412 Distnbution Expense -Operation 3,086,316 3,141,922 3,204 761 3268 856 3,334,233 3.434 260 3,537 288DistripuvonExpense-Maintenance 3799 872 3 875 B69 3953 387 4032 455 133.104 4236 497 4 363 562 Consumer Accounts Expense 3.164 232 3.227 $17 3 292 067 3.357 908 3.425 066 3527 818 3.633.653 Customer Sernnce and Informational Expense .970,591 174.003 177.483 181.033 184,653 190.193 195 BSD Sales Expense id Q is)0 GQ O 0 Aaministrapve ang General Expense 10 668 B62 16 862 239 11 099 B84 11321 882 11548 379 11 864 766 12 251 612 Total Operation and Maintenance Expense 87,362,631 96,241,980 100,073,196 104,067,670 90,854,530 93,391.763 95,955,399 Oepreciaton and Amortization Expense 7,790,000 6,383.516 8 930,360 9.557 504 18,.214.618 19,020,962 19,849,927TaxExpense-Property ana Gross Receipts 347 658 380.793 386.505 392.303 398,187 404 160 410.223TaxExpense-Oiher 644 743 708 638 722611 737,267 752,012 774 §73 797 810interestonLong-Term Debt 5,923,305 6 237 639 6617 452 7.159.828 21 575 202 22 223,173 22.578.300interestChargedtoConstruction'Credi)(33 000;133,660)(34 333)(35 620)(35,720)(36,435)(37,163)Interest Expense -Other 250 123 153 437 125 §22 10€875 58 556 146 648 227 708 Other Deducuons 185 3o4 192131 195 974 199 693 203 891 210 008 236 308 Total Cost of Electric Service 102,523,824 112,264,485 117,017 486 122,189,321 132.061,276 136,135,052 139,999,108 Patronage Capital and Operating Margins 3,403 243 4.246344 4932092 -«§.809,722 6,220,036 7,714,888 8.235.285 Non-Operating Margins -Interest 152 692 158.192 158 356 186 $23 205 694 312 032 4114-233 Allowance for Funds Used Dunng Construction 12 000 12 240 12 485 12734 12:98S 43.249 13814 income (Loss)from Equity Investments ie)0 i*)i)0 La]oO Non Operating Margins -Other .(6 B24)(7 633)(?244)(7 483)(7.685)UF 916){8 153)Generation and Fransmssion Capita!Credits 349 982 306 000 250 000 200 000 9 Q 0 Other Capital Credits ang Patronage Oniends $75 006 592 250 610 018 626 318 6A7 166 666.583 686 580 Estraordinary tems.€i*)to)is]9 o Q Net Margins 4.486.059 6,801,837 Achieved Overall TIER V6 18S +90 195 136 136 141 Overall Rate Change Required -Current Year 857%347%3.91%8 26%251%1.98%Overall Rate Change Required -Cumulative (20114 Base Year}857%12 04%18 95%24 20%26 71%28 68S SRF Rate Change (Base Rates Only,No WPCRA)-Current Year €bey VaoPy 2am 014%3.29%2 68%SRF Rate Change (Base Rates Only,No WPCRA)-Last Three Years $.doce t4li heh aay 5 Baty 51% Equity Ratio : ar 5%ai?”412%412%223%22.8%23.5% 97 Combined income Stat t Case 86:$8.9t¢mmBtu Gas (RIRP 2018 Estimate +15%}:IX Multip 2018 2019 2020 2021 Sales Revenue 190,136 $37 154 324,783 159,026 406 163,145,738 Other Elecinc Revenue 2 526 873 2 582 142 2577 663 2 603 440 Operating Revenue and Patronage Capital 152,663,820 486 .873,924 164,606,071 165,749,158 Power Production Expense 71,254 687 T3164 254 75,123,038 77,132 281 Cost of Purchased Power 2593273 2 645 138 2 698 044 2 752 002 Transmission Expense 39 565 40 752 argra 43233 Orstnbution Expense -«Coerabon 3,643,407 3,752,709 3,865 290 3,961,249 Distnbubon Expense -Maintenance 4494 499 46293 4768214 4911 264 Consumer Accounts E pense 3.742 663 3854 942 3970591 4 089.708 Customer Service and Informational Expense 201,776 267 826 214,064 220 466 Sales Expense ; &iy 9 ie) Aaminrstratve and General Expense 42.619 160 12 997.735 13.387 667 13,789.2¢7 Total Operation and Maintenance Expense 98,589,029 108 292,694 104,068,880 106,999,527 Depreciatnon and Amortizauon Expense 20,642 918 21,447 878 22,275 564 23079 203 Tax Expense -Property and Gross Receipts 416 376 422 622 478 961 435 395 Tax Expense -Omer 821 746 846 396 871 788 697 B42 Inerest on Long.Term Debt 22,975 350 23 198 544 23.675 664 23,800 B26 interest Charged to Consiructon 'Credit)(37 907)(38 665)(39 438)(40 227) interes!Expense -Other 22€306 228 787 136 933 Ba 741 Otner Deductions 222 797 225.461 236 366 243 457 Total Cost of Electric Service 143,851,608 147,627,737 169,654,715 155,420 064 Patronage Capital and Operating Margins "9.812.213 9.246.187 9,951.3 7 10,328,294 Non-Operating Margins -Interest 5088/4 595505 679 646 787 786 Allowance tor Funds Used Dunng Construction 13 784 14 060 14 3a)14 628 income (Loss)from Equity Investments e (3)[:)0 Non Operating Margins -Other (8 388){8 650){8 909)(9 176) Generaton and Transmission Capital Credrs .°9 a Qo Otner Capita!Credds and Patronage Dividends 707 377 728 393 750 246 772.792 Extraordinary tems is}is)i)Q Net Margins 40.030,651 11,664,284 ahasevees esnemnees Achieved Overall TIER 144 446 748 1$¢ Overall Rate Change Required -Current Year 193%166%202%144% Overall Rate Change Required -Cumulative (2011 Base Year)36 G1%32 27%,34 29%38 73% SRF Rate Change (Base Rates Only No WPCRA}.Current Year 38%1 Ga,aio 1 5G% SRF Rate Change (Base Rates Only.No WPCRA)-Last Three Yea EMt.Er boty 5 69%. Equity Ratio 24.4%25 2%263%272% 98 Balance Sheet -Distribution Case #6-$8.9t/mmBtu Gas (RIRP 2015 Est te +15%):3M Utshty Plant in Senice Construction Work in Progress Total Ututy Plant Less.Accumutates Provision for Depreaation and Amortization Net Utlity Piant Otner Property and Investments Cash Shon Tern InvestmentsOtherCurentandAccrued Assets Current and Accrued Assets Deterrad Dents Totat Assets Memberships Patronage Capaal -Beginning Current Year Capital Crodit Retvements Current Year Net Margins Othe:Margins and Equites Total Margins and Equites Gross Long Term Debt Less Porton Due Water One Year Net Long-Term Debt Otrer Non-Current Liabinves Snort.Term Line of CreatCurrentPortion.Long-Term Debt Other Current and Accrued Liabilines, Current and Accrued Liabuties Deterred Credits Tota!Lrathidies and Equities. for Dieset 2011 2012 2013 2014 2018 2016 2017 312669601 «330179801 =-354.315276 «378355270 «=40 TAA OB «=40 084.408 =472 283.8206.452 715 6 581 769 6 713 404 6 847.673 6 984 626 7:126.319 7 266 B05339122516«336761570 «361028680 «=«385202 S43 «415728654 «447168726 ©-479 550.625 (123 831.443)1153 3GE670)(143 889.946)1154 496.936,(166 220000)(178863 260)(192.452.531)185291076 7033672900 «77.438 724 «=230708006 «=249508634 «=»-265 305466 287 098093 21-296 $36 21 988 786 22 648 BOS 23.277 122 25 643 385 28 491 787 31216 531 409,620 417.812 426,168 434 692 443 386 452 253 463.298 Q °0 0 0 0 Q 16.324 134 16 690 616 19 064 429 14 445 797 15 634 632 20.231 324 20 635.951 18.733 758 19108423 19 430 597 1S 880 409 20276.017 20 683,578 21.097,245 5 154 257 5 257 342 §362.489 §465 739 5579,133 $690.716 5.804 530 240 475.622 279 333.276 323.17)a7 =345.216 408 239673 74a 468 249 35/208 348 256.431 264 620 269 912 $2335 533 $5936 186 100.28 788 «=106.254677 =110 984.167 117 68H$27 124,889.530 (882,406)(959,392)(1 062 818)(1052 347)(0.109.842)(1.764 833)(1868 843) 4.486 059 5 301 993 5.955 707 6 801 837 7 789,202 8698 837 9.336.459 3587 412 2659,164 3732 34a 3,806,891 9,883,73 3,960,793 4,049,909 "99766273 ©10 185416 =109.216.378 118 045 502 121798089 128814943 338 369.068 106,663.449 112.268.971 122.522.1846 132.562.334.143 566 301 154678131 168.613 652 (5 120 478)(4 228 072)(4 383 B46)(7 229 276)(7 668 410)(5 408 126)(8.560 312) 101762971 =1068080899.«118138338 «©125333058 135887 B8T 149 270.005 160 053.40 1 226.622 4,263603 1278675 1 304 248 1330 333 4,356,940 1,384,079 6137 aga $020 B64 4396 002 2342 249 5.873 S30 9 108 201 9 082 007 $120 478 4,228 01?4 363 B46 7.229 27€7,668,440 5.408.196 8 560,312 14 375 69€14 663 250 14 956 475 1$255 664 15 $60 716 18 871.930 16 169 369 25635638 25 #1)146 23 735 323 "Da 877 125 25 103 O56 30 368 256 32 801 688 42083 718 1478362 12 $71 900 1?829 338 43079 BOS 13-341 404 13 608 225 aca 3 BQ3071 8a?345 216 408T4S717456 99 264 940 614 Balance Sheet -Distribution Case #6:$8.91/mm@ty Gas (RIRP 2015 Esumate +15%);3X Mulug Ublity Plant nm Senice Construction Work in Progress Total Utiity Piant Less Actumuleted Provision for Depreciation ang Amortization Net Uvuty Piant Other Propeny and investments Cash Short-Term investments Other Current ang Accrued Assets Current and Accrued Assets Deferred Debits Tota!Assets Membersnips Patronage Capital -Beginning Curren:Year Capital Crecit Retirements Current Yaar Net Margins Othe:Margins and Equities Talal Margins and Equities Gross Long-Term Debt Less Portion Due Within One Year Net Long Term Debt Other Non-Current Liadahties Shot Tarn Line of Credit Curren:Portion -Long-Term Debt Otnet Current and Accrued Liabiites Current and Accrued Liabi hes Deterred Crearts Total Liaddives and Equittes 2018 2019 2020 2021 500570913 §33806941 $63$16724 $94.426.801 741214 7 560 364 7744892 7 B65 823 507,983,060 $44 062,325 574,228,316 602.292,624 (206.946 760)(222 355 606)(238 717.003)(255 991 509) 301036 300 «318707759 «©332511312 ©348,301 915 M0034 36 BES 256 39.782 896 42 744 324 470 524 479.935 489 534 499,324 0 0 0 0 24 048.670 21-469 643 21:899.036 22,337,017 21,819,198 21,989,578 22,386,570 22,836,341 5.920 621 6039 033 6 159 B14 6 283.010 362,487 426 «=383565587 =400842592 418 164 591 es be citaeses perseacee eesceecss 2783"280.837 286,433 292,162 132.059 148 140108910148 582772 «187 740.710 (1,980 887)(2 101 634)(2 228 742)(3.184 814) 10,030,651 16,578,496 11,386,678 11864 2384 4 126 809 4 202 225 4287 256 4.373.036 344505030 153066814 162314433 9 99145377 177025600 192 580055 202048279 ©=--208 069,097 (4.207 158)\8 537 646)(9.434 220)(4.110.988) T2618 442 184047409 «192614059 ©196.958 109 1471 76)1,439 996 1 466 746 1496 172 G 151 866 4 477,30?2 386.635 5 228,067 4207 158 2537 686 9434 220 1110 988 WGSIZ ASE 16 843 420 +?780 288 37523 aga 75 831 BCt 3 858 367 30 004 143 33 862 948 13 B80 343 ta 158 001 14 481,161 14 729 984 4362467496 100 458 164 SO Balance Sheet -G&T Case &6.$8.91/mmBw Gas (RIRP 2015 Estimate +5%);IX Muttipier for Diesel Uttty Plant in Service Construction Work in Progress Total Ubirty Plant Less:Accumulated Provision for Depreciation and Amonizato* Net Utuity Plant Othe:Property and investments Casn Short-Term investments Other Current and Accrued Assets Current and Accrued Asseis Oeferrec Debits Total Assets Memberships Patronage Capitat «Beginning Current Year Capita!Credit Retirements Current Year Nel Margins Other Margins and Equtties Total Margins and Equiues Gross Long-Term Debt Less.Portion Due Witrin One Year Net Long-Term Dept Other Non-Current Liatrites Snort:Term Line of CreditCurrentPortonLong-Term Debt Other Current and Accruad Liatiihes Curent and Accrued Liatilites Deterred Credits Tota!Liatrhtes ano FQuites 2041 2012 2043 2014 2015 2016 2017 G 9 QO i)250,800,000 250 B00 000 250 800.0600°Q L)Q o o i)o °i)250 690 000 250 800.000 256.800,000 fe)ie)0 0 (7 942,000)(18 884 000)(23.826 000) a 0 6 0 242.856 000 234 916.000 226.974 000 EB)c ic]0 LY)a t) 0 o 0 o 50 000 §0 000 50.000 ie]Qo Q 0 5,108 222 16,089,396 14 782,423 o ty °0 0 te)Qo o G i)oO 5.158 222 10 109 396 14 632 423 o °i 0 tel ig Q o 248 016.222 245.025 396 241 806 423 e is)i 5 100 106 100 °0 0 3°6 2,748,106 4300 955 o °0 0 i 0 6 i it]Qo o 2.419 100 2,181,815 2.238 1640oo00eo 0 i]0 u 2.119 206 4307018 6 539 179 t')[)Q )248 897 S22 240 724,381 235 267 244 9 Q Q G (5.172 641)(5 457.337)(5.75?279) c Q 0 6 240 724 384 235.267 244 229 509 965 iS]a ie)is)iy o 8 0 a Qo Q 0 ©° 6 a Qo 6 S172 641 5 457,137 5757 279 c iv 6 9 Q QO o 'a 5 e $172 6A)5457 137 S75?279 G 6 i)6 G is} ig i)245 025 396 101 Lgaresare Balance Sheet -G&T Case ¥6:$8.91/mmBtu Gas (RIRP 2015 Estimate +13%);3X Mutip Utilty Piant in Senice Construction Work tn Progress Total Uthty Plant Less Accumulatea Provision for Deprecialion and Amorizauon Net Utility Plant Other Property and investments. Cash Shon.Term investmentsOtherCurrentandAccrued Assets Current and Accrued Assets Deterred Debts Total Assets Membersnips Patronage Capilal -Beginning Current Year Capital Crean Retirements Current Year Nei Margins Olher Margins ano Equities Total Margins and Equives Gross Long Tenn Debt Less Porvon Que Within One Year Nel Long Term Dept Other Non-Current Liabiihes Short-Term Line of Credit Current Portion Long-Term Debt Other Current and Accrved Liatulitres Current and Accrued Liabitties Deferrec Credits Total Liabiites and Equites 2018 2019 2020 2024 256 800 6OG 250.800 000 250.800.0000 250.800.000 o oO °o 250,800,060 250 800,000 256 800 000 250 800 000 (31 768 GOO)139.7410 000)(47 652 000)(55 594 000) 219 032 00C 211,060 600 203,146 000 195,206,000 fs]ce]is)Qo 50.000 5G 000 50,000 50,000 38 254.747 23:452 369 27 349,768 30.919.809 0 Qo 0 G 19 304 74?23 502,369 27 390,768 20,963,809 Cc Q 0 i] 2M 592 369 230,547,768 226.175 809 106 106 100 100 6539079 &826 €82 11 456.234 13519 629 0 6 Q Q 2 287 602 2 329,552 2,363 395 2.388 477 iy o Q oO 6 826,782 V1 156,334 13,549,799 4 908,206 229 $09 965 223.436 035 217 028 839 216.267 604 (6.073.936:16 407 396)(6.760 436){7 332.260) 23,436,035 a 7,028,039 210,267 604 203,138,344 c 0 0 iy 0 9 8 0 €O03 940 6 407 906 &760436 7 732.260 Cc 9 oO Qo 6 073.936 6 ACT 256 €,766,436 7,232,260 C i)c 0 238 336 74°234 59?369 230 O47 764 226 175 809 102 Combined Balance Sheet Case 06:$8.9t¢nmBtu Gas (RIRP 2015 Estimate +15%);3X Multiplier for Dieset Utility Plant im Senace Construction Work in Progress Total Utity Plant Less:Accumulated Provision tor Depreciating and Amonization Net Utity Plant Other Property and Investments Casn Short-Term Investments Othar Current ans Accrued Assets Current and Accrued Assets Deterred Debas Toiai Assets Hamberstups Patronage Capital -Beginning Current Year Capital Credit Retrements Current Year Net Margins Other Margins and Equites Tota!Margins ano Equities Gross Long-Term Debt Less Portion Due Within One Year Net Long-Term Debt Other Non-Curtent Liabiies Short-Term Line of Creat Current Portion -Lang-Tern Debt Other Current and Accrued Liabuites Current ang Accrued Liabitbes Deferred Crevits Tota'Liamites and Fautbes 201 2012 2013 2014 2018 2016 2017 312665803 330179801 «354 315.27 378.555.270 669544,008 690844408 723.083.8270 6 452715 6 583 769 6713 aCe 6 847 673 6 984.626 7124319 7.266 805319127516«=-336.761570 HET OTE SEO ©«385207943 ©BE 528634 «=G97,968.728 «730350625 (123831440)(133398670;(143.58956)(184.496.9386)(174 162000)(194.747.2860)(216.278 $31) 195201076 ©203362000 «217.438 724 ©2330 706.008 =492.634 ©503.271.4688 «514.072 083 21296 £36 21 988 786 22.648 804 Z3.277,122 23724 289 24 190,872 24 677 452 408.620 417.912 426.168 434.692 493 386 $02 253 513.208 0 0 c 0 5,198,222 10,059,396 14,782 423 18 324,134 78 690 616 19 064 429 49.448 717 19834 632 20 231.224 20.635 951 18.733 754 79 106 426 19 490 557 19 680 408%25 436 240 30.792 973 35 929.672 $,154 257 §257,342 5,362,489 5 466,739 $79,133 5,690,716 5,804,530 240475622 «24D 717 4560264840614 «-«-279333.276 «©847106.298 «=863.898.0278 .4B2 748 :egietesss eeszeceas eanereess aueerecz=zaceranse 239 675 244 468 749 357 254,344 256 531 264 720 270.012 §2.335 $33 S929 186 106.281 788 «=105.234.8677 110 86a 167 «147.685.927 124.589 530(682,406)(95%362}(1 002.818)(1.052 347)(1 108.642)(1,764 833)(1 868.843) 4.426 059 5 301 993 5 955,707 6,801,837 7.781.202 8,698,837 9.338.459 3587 12 3659 161 3737 346 3 $06 91 3683 131 3960 793 4040 00996766.273 104185416 «=199.216.378 =115045.502 «121 708 ES «=18815063 -«-136 369 168 WS SAR44S 112268971 122522184 =132562.334 «389,453,322 395.402.511 403 88 NDE (S120 478)(4 228.072)(4 382 B46)(7.229.276)(12845052)(10.865.783)(44.317 581) 101762971 «=108040899 TTB 13ESI8 «=125333.056 «4376622271 «©Sha 537248 ©389.863,308 1228022 $253 603 1278875 1.304.248 1330 333 1 356,540 1384078 6137 464 $020 864 4395 0¢2 2342289 $873 930 9 106 201 9 052,007 5120 476 4728072 4.383 a4e 7,226 276 42,844,052 10,885 263 $4,317,591 14 375 696 14 663 210 14 956 47%15 255 604 18 560 756 18 873 930 16 165 369 25 633 638 23912 146 73735 323 24 827 129 34275 688 35 845 308 39 558 967 12083 71h 12 873 908 2.823.338 2975 BOS 13,341 401 33,608 279 62.26 547 106 29626496061 103 3276 5S€3 896 027 580 483 748 Combined Balance Sheet Case #6:$8.9t¢mmBtu Gas (RIRP 2015 Esumate +15%);3X Mutup Utiity Piant in Service Construction Work in Progress Total Unity Plant Less Accumulated Provision tor Depreaanon and Amortization Net Uuity Plant Other Propeny and Investments Casn Snron-Term Investments Other Current and Accrued Assets Current and Accrued Assets Deferred Debds Total Assets Memberships Patronage Capital -BeginningCurrentYearCapitalCreditRetramenis Current Year Net Margins Otne Margins and Equites Total Margins and Equities Gross Long-Term Debt Less Porton Due Witnin One Year Net Long-Term Debt Other Non-Current Labitines Short Term Line of CreditCurrentPorvor-Long-Term Debt Other Curent and Accrued Liatiines Current ang Accrued Liatihtes Deterred Credhis Tota!Liaddibes and Equmes 2018 2019 2020 2024 751370919 =784306941 «=«8 14.316 724 «=8.45 226 B0174121417.560 384 7711592 7 865.823 758783060 781867325 6822026316 653 092.624 (238714760)(262 069.606)(286 369.003)(311.585 508) 520066300 529797719 5358659313 541 507.115 25,184,629 25713 022 25 263.267 26 836 019 $26 524 529 #35 529 534 549.32419,254,747 23,457 369 27 -389,768 30 919.809 21 048.670 21 480 643 21,899.036 22 337 017 46 823.941 45.451 G4?49 786 338 53,806 150 5.920621 6.039 033 6 159 B14 6,283,010 561997491 607 001 722 626 432 294 278411 286 917 286 533 292 262 132059146 140108 910 148.582.772 187 740,736 (1.980 887)(2 101 634)(2 228,742)(3,154 844) 19 030 651 16 575 436 14-386 678 11,864 284 4 120 809 4 203.028 4287 290 4373,036 746505130 153066914 1623545330174115AT? 408525565 416016090 41,075 318 =418,336 701(10261086:(14 945642)(16 194656)(18 243,248) 39625447?=401070448 «=402881663 -»«-400.093.453 1411 764 1439 $96 1 466 796 1498 172 9157 486 $477 304 3389 635 5 228 067 10 261 C65 14.945 G47 16 194 656 18 243,248 16.513 156 16 843 420 17 180 268 17 523 894 35 945 740 37 786 362 36 764 579 40.995 208 13886 263 14 158 061 14444161 14 729 64 $17 A°G 731 628 432 204sargoragi Case #6 2045 2016 2017 2018 2019 2020 2021 ++**ESTIMATED BUSBAR COST OF NEW EKLUTNA PLANT "8 ot et serressNetInstalledEstimatedEd E Capaatty of Energy Reqd Cost of New Cost of New Capitat New Plant trom Eklutna Vanable Required Projected Ektutna Power Eklutna PowerInvestment(kW)Wanrtsila Plant interest Depreciation O&M Fuel Cost Margmns Cost (S/MWh)(S/kWh) 250 800 000 162 222 714.974 628 13.794 .000 7,942 000 7950 518 57 699.190 2069100 89.454.807 $125.4 $0.12512 a 162,222 726,920,248 13,524,336 7.942 000 8.164 187 59 249.846 2.078.650 90.909.019 $125.1 $0.12506 0 162.222 739 045.051 13.239,841 7 942 000 8 383.366 60 840 496 1986976 92.391,679 $126.0 $0.12501 td]162,222 754 351,727 12 939,698 7 942.000 8.608.197 62,472 156 1.940955 93.903.006 $125.0 $0.12498 0 162.222 763 843.003 12,623,048 7.942 000 8.838 822 64 145 867 1893457 98 443.195 $125.0 $0.42495 0 162,222 776521 648 12 288,982 ?942 000 9.076 388 65.862 698 1843347 =97.032.416 $124.9 $0.12493 0 162 222 789 390.473 11936542 7 942 000 9 318.047 67.623.743 1,790 481 98.610.814 $124.9 $0 12492 105 Case #7 $10.08/mmBtu Gas Cost (RIRP 2015 Estimate +30%);3X Multiplier for Diesel 106 Case #7:$10.08/mmBtu Gas (RIRP 2015 Estimate +30%);3X Multiplier for Diesel Retail Rate Projection (Sawn) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Sales Revenue per kWh Sold (Annuahzed)0.1490 01617 0.1669 0.1727 01952 0.1991 02021 0.2051 02077)02108 02131 Cost of Power Projection thaw} 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source. Chugach Electric Association.Inc {includes assigned hydro)009549 6.09836 0.10121 015435 New Eklutna Generating Plant 0.13564 0.13569 0.43575 0.13582 0.13590 0.13600 0.13609 Bradley Lake Hydro 004492 0.04582 0.04674 0.04767 0.04862 0.04960 005059 Eklutna Hydro 000591 ©0060S 0.00627 000646 0.00665 000685 000706 Overall 012505 6.12531 012559 0.12587 0.12616 012645 0 12675 107 0 income Statement -Distribution Case #7:$10.08/mmBtw Gas (RIRP 2015 E.te ¢30%);3X Multipl Sales Ravenue Other Etecine Revenue Operating Revenue and Patronage Caprtat Power Production Expense Cost of Purchased Power Transmission Expense Distnoution Expense -Operation Oistnbuton Expense -Maintenance Consumer Accounts Expense Customer Sennice and informational Expense Sales Expense Admirustratrve and General Expense Total Operation and Maintenance Expense Depreciation and Amonization Expense Tax Expense -Proparty and Gross Receipts Tax Expense -Olner interest on Long-Term Debt intarast Charged to Consinuction (Creat) Interest Expense -Other Other Deduckons Total Cost of Electric Service Patronage Capital and Operating Margins Non-Operating Margins -Interest Allowance for Funds Used During Construction Jncame (Loss)from Equity invesiments Non Operating Margins -Ciher Generavon and Transmission Capital Credits Otner Capital Credits and Patronage Ovwsdands Extraordinary tems Net Margins TIER Target Achieved TIER Overall Rate Change Required -Current Year Overatl Rate Change Required -Cumulative (2011 Base Year) SRF Rate Change (Base Rates Only,No WPCRA)Current Year SRF Rate Change (Base Kates Onty,No WPCRA)-Last Threo Yoars Modified Debt Service Coverage Ratio -Current Year Modified Oebt Service Coverage Ratio -Best 2 of 3 Years Equity Ratio for Diesel 2011 2012 2013 2014 2015 2016 2017 103.570 177 114,130 400 119,545 345 125,570,768 144 054 735 4149 101.097 183,668,255 2.356.860 2 380 429 2 404 233 2 428.275 2452,558 2.477 084 2,501,854 105,927,037 116 $10,829 121,949,578 427,999,043 146,507,293 351,578,181 456,170,109 0 it}i°)9 0 i 0 66 445 308 ?4 906 320 78.31 813 81 870.039 99 584.028 101 2&4 159 103.038.077 33,450 Big 34,601 35,497 36 207 37 294 36.412 3,080 316 3 141 922 3204 781 3258 856 3.334 233 3.434 260 3,537 288 3.799 672 3 675.869 3 953,387 4032 455 4113104 423%497 4363 592 3,164 232 2.227517 3.292.067 3.357.908 3.425.066 3.527 818 3633 653 170 $91 174 663 177 483 181.033 184.653 190.193 195.699 0 Q is}6 0 °0 10.668 B62 10,882 239 11,099 884 41,327 882 11 548.319 11,894 769 12.251 612 87,362.631 96.241,990 100,073,196 104,067,670 122,225,612 124,614,990 127,059,533 7,790 000 8 383 S16 8 930 360 9 557 504 10 272,618 11,078 962 11 907 927 347 658 380 793 3386 505 392 303 398.187 404,160 410,223 654 743 708,638 722 Bit 737 267 7$2.012 774573 787,810 §$23,308 6 23/7 639 6617 452 7 159 828 7 781 202 8 698.837 9 338.459 (33 000)132 660)(34 333)(35.020)(35 720){36 435)(37 165) 250,123 *83.437 426,522 109,875 $8,596 146 848 227 705 188 364 192.121 195 974 199 893 203 891 230.008 216 308 102,523,624 $12,264,485 147,017,486 122,389,324 144,656,357 445,891,943 149,920,801 3,403,213 4,246,344 4,932,032 $.809,722 4.850,936 $,686,238 6,249,309 152,692 158.192 158 356 1$8 523 158,694 158,868 158 O4S 12.009 17 240 42 485 12734 12 989 43.249 13.514 i)ie)[s]9 a 0 ['] (6,826)(033)(7,744){7,461}{7 685){7,916)(8,183) MG 982 300 000 750 O06 200 000 2118 106 2 181.815 2.258 164 $75,000 $92 250 €10 018 628 318 Ga7 168 666.563 686 S80 is]te)ie]Q 0 ie)G 4,486 059 §.301,993 5.985.707 7,781,202 8,698,837 es see eet :8 sagteeese =sex 1.76 185 1.90 1.98 200 2.00 2:00 4.76 185 1.90 1.95 2.00 2.00 2.00 857%347%39%18 10%259%2.06% BST%12 04%,16 95%31.09%33 63%38 69% 6 bbe,1 OPS 241%0 14%329%246% VT 28%.16 02%WES 4474,5 ba SST% VIS?1693 $$2%1983 1550 7578 1 889 1.839 1952 1952 1.780 1.733 41.5%ALT 412%442%40.4%39.9%39.5% 108 income Statement -Distribution Case #7:$10.08/mmBtu Gas (RIRP 2015 Estimate +30%):3X Mult 70418 2019 2020 2021 Sales Revenve 186.265 485 162 688 635 167 619.195 17%966 206OtnerElectneRevenue2.526 873 2 $52 142 2.577 663 2 603.440 Op Qk and P ge Capita!160,612,362 165,240,777 170,196,858 174,569,646 Power Production Expense [s}fe}(+)(+) Cost of Purchased Power .104 819 155 106,634 750 108 486.195 410 373.604 Transmission Expense 39 565 40 752 44976 43.233 Orstrbution Expense -Operation 3643 407 3 762.709 3 865,296 3981249 Orstnduton Expense -Maintenance 4494 499 4629334 4768 214 4911261 Consumer Accounts Expense 3.742 663 3854 942 3 970.591 4 089.708 Customer Sennce and Intormatonal Expense 201 776 207 629 214 064 220.486 Sates Expense 0 fe a o Administrative and General Expense 12.619 160 12 997,735 13,387 667 13,789.297 Total Operation ano Maintenance Expense 429,560,225 132,118,054 134,733,996 137,409,038 Depracation and Amortizanon Expense 42,760,918 43,505 878 46 333.564 45 137,203 Tax Expense -Property and Gross Receipts 416.376 622,622 428 S61 435,395 Tax Expense -Otner 824 744 846 396 871 788 $97 942 interestonLong-Term Dent 10.030 651 10 $78 496 13,386 675 11 B64 284InterestChargedtoConstruction(Credit)(37,907){32 665)(39.438){40 227) Imerest Expense -Other 226 309 226 787 136.933 84 741OtnerDeductions222767229481236366243.487 Totst Cost of Electric Service 1,104 -757.888.04 162,088,849 166,031,833 Patronage Capital and Operating Margins 7.352.730 8 108.009 8.537.813 Non-Operating Margins -interest 159 410 159 599 159 791 Ailowanca for Funds Used Dunng Construction 14 060 14 3at 14628 Income {Loss)from Equity Investments 6 fa)0 Non Operating Margins -Cher 18 398){8 680)(8 909){9 176) Generation and Transmssion Capital Credits 2 287 603 2 329 552 2363 395 2 388477 Other Capitat Crecits and Patronage Sividends FOTW?°28,383 750,245 772,752 Extraordinary lems i)fa)}Es) Net Margins 70,030,651 10,575,496 11,386,679 114,864,284 TIER Target 2.00 200 200 2.00 Achieved TIER 2.00 2.00 2.00 2.00 Overai!Rate Change Required -Current Year 2.01%174%210%152% Overall Rate Change Required -Cumulative (2011 Base Year)37.70%39 4%41 65%4307% SRF Rate Change (Base Rates Only.No WPCRA}-Current Year rus 2 35%159% SRF Rate Change (Base Rates Only,No WPCRA)-Last Three Yea Brite €65*.5 B9% Modified Debt Service Coverage Ratio -Current Year 1642 2553 16 3 686 Modified Debt Service Coverage Ratio -Beat 2 of 3 Years 4750 2020 1933 1.933 Equity Ratio 399%39.9%405%40 9% 109 income Statement -G&T Case #7;$10.08/smm&w Gas (RIRP 2018 Sales Revenue Otner Elecine Revenve Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Transmssion Expense Disinbuton Expense -Operaton Distrbuyon Expense -Mamtenance Consumer Accounts Expense Customer Service and Informational Expense Sates Expense Admmisyatve and Genara!Expense Totat Operation and Maintenance Expense Depreciation and Amortizabon Expense 'Tax Expense -Property anc Gross Receipts Tax Expense -Other interest on Long-Term Debt interest Charged to Construction (Credit) Interest Eapense -Other Other Deducvons Total Cost of Electric Sernice Patronage Capital and Operating Margins Non-Operating Margins -Interest Aitowanoe for Funds Used During Construction Income (Loss)trom Equity investments Non Operating Margins -Other Generation and Transmssion Capital Credits Otner Capita!Credis ano Patronage Didecas Extracranary tems Net Margins Operating NER Target Achieved Overall THER Equrtty Ratio +30%);LX Me:for Diesel 2014 2012 2013 2014 2018 2016 2017 ©0 0 o $6.564028 101.294.1898 ---103.030.077 0 0 ")0 8 0 Q 0 3 ry 0 99,584,028 109,294,159 103,039,077 0 0 °°73,335,230 75 308,800 77,328,836 °0 0 o 2.443.699 2.492 573 2.542.424 0 r)0 0 °0 0 Q 0 0 6 0 0 F 0 0 e 0 Q 0 Q 0 0 0 0 0 0 a 0 0 0 e 0 0 0 0 0 0 6 °0 0 0 5 9 0 0 °a 0 0 ry)0 75,778,328 77,799.73 79,871,260 Oo 0 °7 942.000 7 $42,000 7 @42 000cac0000 0 0 0 0 0 °0 c 0 0 0 13 794.000 13.924 336 4936.84! ©0 0 0 0 °9 0 0 6 0 o 0 a 9 ¢o 0 9 0 Q "9 r "8 8 97,514,928 99.765.509 101,053,101 Oo 0 0 3 2,069,100 2,028,650 1,985,976 9 -0 0 $0,000 153,164 252 188 8 0 0 0 0 0 0 6 0 0 0 0ti60000 o 0 o G 0 0 0 0 G 0 Q 6 o 0 9 °0 c 0 9 0 0 2.184,815 se :2 2 secscaczs £00 coo 600 000 +45 1 145 fans 000 660 000 145 1 17 00%00%00%00%0s%1.8%27% 110 income Statement -G&T Case #7:$10.08/mmBiu Gas (RIRP 2015 Estimate +30%);3X Mult 2018 2019 2020 2021 Sales Revanve 104 619,155 406.634 750 108,466,195 110,373,804 Other Electne Revenue ie]fe)Q a Operating Revenue and Patronage Capital 104,819,155 106,634,750 108,486,195 110,373,604 Power Production Expense 79 403,230 84 531,106 83.713,825 85.952 779 Cost of Purchased Power 2:§93.273 2645 138 2.698 Oa)2 752.002 Transmission Expense 0 fe}0 9 Distrpuson Expense -Operaton ij fo}o Distnbubon Expense -Maintenance 0 i is)0 Consumer Accounts Expense [s)is](°)9 Customer Service and Intormationa!Expense Q 0 is}(*) Sales Expense 0 6 Q 0 Admnistatve and Genera:Expense Fa)°ty i) Totat Operation and Maintenance Expense 81,996,502 84,176,245 66,411,866 88,704,781 Depreaaton and Amoruzauion Expense 4,942,900 7,942,000 7,942,000 7 942,000 Tax Expense -Property and Gross Receipts is)fe)[s)i?) Tax Expense -Other 0 0 is)it} Interest on Long-Term Dedt 42.939 698 Ve 623 048 12 288 G82 14.036 642 interest Charged to Construction (Creat)Q fe)i}oO interest Expense -Other i ie)ie}[ey Oiner Deductons 0 0 t)6 Total Cost of Electne Service 102,878,204 104,741,293 408,583,323 Li ge Capital and Op ing Margins 4,946,955 4,893,457 1,790,483 Non-Cpesating Margins -interest 36 648 436 065 597 99S Allowance for Funds Used Dunng Canstruction iy ie) Income 'Loss:fram Equity Invesiments fe)fe) Non Operating Margins -Other 0 ie) Generabvon and Transmission Capital Creaits ct)ie) Otner Capital Crearts and Patronage Dmcends (s](o) Extraordinary tems [e)0 Net Margins 2,287,603 2,329,552 Operating TIER Target 115 "18 148 115 Achieved Overal!TIER 148 116 439 120 Equity Ratio 37%48%5.9%T0% 111 Combined income Stat ¢ Case #7:$10.08/mmBiu Gas (RIRP 2015 E: Sales Revenue Owner Electnc Revenue Operating Revenue and Patronage Capital Power Producton Expense Cost of Purchased Power Transmssion Expense Distnbuhon Expense -Operaton Drstnbubon Expense -Maintenance Consumer Accounts Expense Customer Service and informational Expense Sales Expense Administratve and General Expense Total Operation and Maintenance Expense Depreciation and Amoruzation Expense Tax Expense -Property and Gross Receipts Tax Expense -Other interest on Long-Term Debt Interest Charged to Construction (Creat) Interest Expense -Other Otner Deductons Total Cost of Electric Service Patronage Capital and Operating Margins Non-Operating Margins -Interest Aliowance tor Funds Used Dunng Construction Income (Loss)from Equity Investments Non Operating Margins -Other Generaton and Transmission Capital Creais Other Caprtal Credits ana Palronage Drvidends Extraordinary ttems Not Margins Achieved Overall TIER Overall Rate Change Required -Current Year +30%),3X Overalt Rate Change Required -Cumulative (2011 Base Year) SRF Rate Change (Base Rates Only,No WPCRA)-Current Year SRF Rate Change (Base Rates Onty,No WPCRA)-Last Three Years Equity Ratio for Diesel 2014 2012 2013 2014 2015 2016 2017 103570177 114,130,400 119,545,345 129,570,768 144,054,735 149,101.097 153 668.2552.356 860 2.380 429 2.404 233 2.426 275 2.452 $58 2.477.064 2,501 854 105,927,037 116,510,829 «421.949.578 «127,999,043 «146,607,293 «151,578,181 156,170,109 °°0 0 73,338,230 75,306,600 77,328,836 66 445,308 14 906 320 76310813 81 870 035 7.443 699 2.492.573 2§42 424 33 450 34119 34.801 35.497 36,207 37.208 3a4i2 3,080 316 3.141.922 3.208.761 3,268 856 3.334 233 3.434 260 3.537 288 3799 872 2875 869 3.953 387 4032 455 4.543.108 4.236 497 4,363,592 3.164 232 3.227 517 3.292 067 3357 908 3,425 066 3.527.818 3.633.653 170 561 174 003 477,483 181 033 184.653 190.193 198,898 0 0 0 0 0 0 0 10 668 662 10 682 235 31,099 .684 11.323,882 11,548 319 11:894.769 412259.612 87,362,631 96,241,890 100.073.196 104,067,670 98,420,512 105,120,003 -«-103,891,716 7.760 060 6,383,516 €,930,360 5,557,504 16,244 618 19.020 962 19 840 927 347 658 380,793 386.505 302 303 356 187 404 160 410.223 694,743 708.638 722813 737.267 752012 774573 797 810 $923,305 6 237 635 6617 452 7 159 828 21578 202 2.223.173 22.578,300 (33 000)(33 680)134.333)(35,020)(36,720)(36.435)(37-163) 250,123 189.437 475 572 109 875 56 856 146.848 227.705186364192433198974199863203B61210008216368 102,523,824 112,264,485 =117,017,486 «122,189.321 «139,887,257 143,863,282 «147,934,824 3.403.213 4.246 344 4.932.082 |5.809.722 6,820,036 7,744,868 8,235,285 152 692 156 792 158 356 158 523 208 654 312 032 41123312000122401248512.734 17.989 13 249 13514 0 0 0 0 0 0 ° (6 828)(7.053)(7.244)(7 481)7.625)(7,916)(8.153) 349 082 300 090 250 000 200 000 0 0 0575000592250ero.c18 628 318 €47 168 666.583 686 580000000° 5,955,707 6.801837 7,781,2024,486,059 °76 415% $,304,993 417% 112 13% 16.10% 31 08% 014% say 22%228% c bined hh Srat 4 Case 87;$10.08/mmBtu Gas (RIRP 2015 Estimate +30%):3X Mult Sales Revenue Otner Electnc Revenue Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Transmission Expense Distnbution Expense -Operation Distrbutron Expense .Maimenarnce Consumer Accounts Expense Customer Service and informational Expense Sales Expense Adminisvative and General Expense Total Operation and Maintenance Expense Depreciabon and Amortizavon Expense Tax Expense -Property and Gross Receipts Tax Expense -Other imerest on Long-Term Debt interest Charged to Construction (Credit) Interest Expense -Other Otnet Oeducnons Totat Cost of Electric Service Patronage Capital and Operating Margins Non-Operaung Margms -interest Allowance for Funds Used Dunng Construction income (Loss}from Equity Investments Non Operating Margins -Other Generabon and Transmisseon Capital Crearts Cine Capita'Creads and Patronage Ownends Extraorainary Hems Net Margins Achieved Overall TIER Overall Rate Change Required -Current Year Overall Rate Change Required -Cumulative (2013 Base Year) SRF Rate Change (Base Rates Onty,No WPCRA)-Current Year SRF Rate Change (Base Rates Only.No WPCRA)-Last Three Yea Equity Ratio 2018 2019 2020 2021 158,265.489 162 668635 157,619.1%5 171,806,206 2526 873 2552 14?2.577 663 2.603.440 960,812,362 165,240,777 170.186.858 -«-174,869.646 7,403 230 &1.534,106 83,713,825 65,952,779 2.893.273 2645 138 2696 041 2.752.002 39 565 49 752 an 974 43 233 2,643 407 3,752,709 3.868.290 3.981.248 4 494 499 4629 334 4768 214 4941261 3,742 663 2654 942 3970591 4.089.708 201.776 207 829 214,064 220.486 9 0 0 ry) 12619 160 12,997 735 13 367 867 13.789.297 106,737,571 109,659,546 112,659,666 115.740,015 20,642,818 21,447 676 22.275 56a 23.078 203 416 376 422 622 428,964 435.395 821 74a 846 396 671,788 897 942 22 970.350 22 198 544 23.675,661 23 800.826 (37 907)(38 665)(39.438)(40,227) 226 300 228 787 136 933 a4 741 222 797 224 481 236 366 243 457 152,000,150 155,894,580 160,245,500 164,241,352 8.612.213 9.246.187 -«94.951,357 «10,328,294 505 B74 595 508 670 646 757.786437841406014341146280900 (8 388)(8 650)(4 909)(9.176) 0 0 0 0 Ter t 728 363 750 245 772782 Q 0 0 0 10,030,651 10,575,496 41,386.679 11,864,284 a ze =zu =oo 14s 46 143 +50 201%174%2.10%152% 37.20%39 ads a7 65%43.07% 2 38h 1 Gay 235%159% e tt%ary 665%4 895, 244%25.2%263%27.2% 413 Balance Sheet -Distribution Case #7:$10 O&mmBiu Gas (RIRP 2015 Estimate ¢30%),3X Multiptior for Diesel Uteity Plant in Sernnice Construction Work in Progress Tolal Utety Prant Less.Accumulated Provision tor Depreciation and Amonuzation Net Utility Plant Otner Property and tnvestments Cash Short.Term Invesiments Other Current and Accrues Assets Current and Accrued Assels Deferred Debits Tota!Assets Memberships Patronage Capital -Beginning Current Year Capita Crecht Retirements Current Year Nut Margins Other Margins and Equities Total Margins anc Equities Gross Long-Term Debt Less Portion Due Wahin One Year Net Long-Term Debt Other Noo-Current Liatites Short-Term Lune of Cred Current Portion -Long-Term Debt Otner Current and Accrued Lantes Current and Accrued Liabites Detested Credits Total Liataites and Cquites 2044 2012 2013 2014 2015 2016 2017 312 669.601 330 176 801 354.315 276 378 385 270 406 744 008 440 044 408 472,283,820 6 452715 6 581 769 6.713 404 6 847 673 6 964 626 7,924,319 7.266 805 3°9.122 $16 336,761 570 351,028 680 985,262,943 415,728 634 447 168 726 479 $50 625 (123.634 440)4133 398 670)(143 $89 956)(154 496.936)(16€220 000)(178 B63.260)(192 452 531) 195,291 076 203 362 900 257 438 726 230 706 006 245 S08 634 268 305.466 287 096.093 21,296 536 21 986 786 22 648 804 23:277.122 26 643 369 28 491,787 34216 531 409 620 417 812 426 168 434.692 443 366 452.283 461 298 iV]ie)o 8 o Q ° 18 324 134 18 690 616 15 068.429 19 44 717 19 834 632 20.231.324 20 635 951 18.733 754 19 108,429 19,490.597 19,880 409 20,278,617 20,663,578 23097 249 5 257 342 §469 739 $.575.133 5 690 736 5 804 $30 323 171 S47245.717 456 279 333 276 Bet 23S 675 244 468 249,357 254,344 259,434 264 620 269.912 92 325 933 4 939 186 106 281 788 10 234677 110 984.167 117,655,527 124 589 530 (B82 406)(959 392)(1 002 818}(1.052 347){1 109 842)(1 764,833)(1 868 843) 4 486,059 5,301,993 5,955,707 6,801,837 7,781,202 8,698,837 5,338,4593.587 412 3.659 163 3732 Me 3.806 991 3883 131 3.930 793 4040 009 99,766 2/3 104 185 416 109 216.376 115.085 502 121 798 089 128 814.943 136.369 068 106,883 446 132 268571 122 $22 184 132,5€2 334 143,66 301 154,678,131 168,613 652{5.120 476){4 228 072)(4,383 846)(7.229 276)(7 668 410){5.408 126)(8 $60 312) 104 762 971 108 040 895 118 138,338 125333088 135.897 891 148 270.005 160 053 340 1726 072 1253 603 1278 675 1304 248 1330 333 1.356.940 1384079 6 137,464 5,026,664 4 395,002 2:382,249 $873,930 9.108.201 9.082.007 5.120 478 4228 092 $383 B26 7 226 276 7668 410 §408 126 856031214.375 69%14 663 210 14 956 475 1$255 604 15 560 716 18.871 930 16 189.369 25,633,638 3 23.735,423 74 827 129 25.103 056 30,388 256 33 803 688 12.083,778 82 $28 392 12.871 900 12822338 13.079 805 13 341.401 13.608 229 264 GAD 614280.475 622 ra 717 656 144 279 333 276 301209 174 =a 323.371 SAT Balance Sheet -Distribution Case #7:$10.08/:mmBtu Gas (RIRP 2015 Estimate +30%):3X Mult Utarty Plant im Service Construction Work in Progress Totat Ublty Piant Less Accumulated Provision for Depreciation and Amorization Net Unlity Plant Other Property and investments Cash Shon-Term Investments Other Current and Accrued Assets Curent and Accrued Assets Geterrea Debts Total Assets Memberships Patronage Capital -Beginning Current Year Capital Credit Rewremants Current Year Net Margins Cihe Margins and Equies Tota!Margins acd Equites Gross Long-Term Debt Less Potion Due Within One Year Nel Long-Term Debt Othe:Non-Curent Liatitees Snon-Term Line of Creaa Current Portion -Long Term Debt Other Current and Accrued Liabuibes Curent and Accrued Liabuines, Deterted Credits Total Liabhbes aod Equites 2048 2019 2020 2021 $00 570915 533506 S41 563516724 854.426.8017.412145 7 560 384 7.711 $92 7 B65 823 507,963 060 $41,067,525 $77 228.316 602.292.6724 (206,546 760)(222 359606)(238717003)(285 891.809) 307,036 300 «318,707,719 ©332,511,313 346,501,115 34.018 314 36 669 256 39 782 696 42,744 124 470 524 479.935 489.534 499.324 9 0 0 0 21.048.670 21.469,643 24,899,036 22 337.017 21 819 188 21949 578 22.388 570 22 636,341 §920 621 6 039 033 6 159 B14 6 283.016 427,426 =352,505.587 --400,847.552 275.30 280 817 286,523 292 162 132,059 146 140 108940 148.582772 «187.740 716 (1 980.887)(2 104 634)(2.228.742)(3.154.814)10,630.651 19,975,496 14,966,679 11,864 2844126B0542027254.287 290 4373 036 744505030 183066814 62314433 472915377 477,025600 162 580,055 202.48.279 208 069.097 (4.207 358)(8 $37 646}(9.434 220)111.110.988) 172818442 184042409 «182618059 196 958 105 S411 761 1 439 996 1468 796 1498 972 §,181,486 6.427309 2,386,635 §278.067 4207,188 £597 646 9 434 220 11 110.988 38.513 156 16 443.620 17 180 288 47 523.894 29,671801 30.856 367 30,004.183 33,262,948 +3 660 363 14 458 001 14.441 161 34.729 984 362 487 46 418 164551 115 400 842 55> Balance Sheot -G&T Case #7;$10.06/mmBtu Ges (RIRP 2015 E.©3On}IX Utility Plant in Senice Construction Work in Progress Total Ublty Plant Less:Accumulated Provision for Depreciation and Amortizabon Net Ubiny Plant Otner P:operty and investments Cash Snort.Term investments. Otner Current and Accrued Assets Current and Accrued Assets Deferred Debts Totai Assets Memberships Patronage Capitat -Beginning Current Year Capua!Credit Retrements Current Year Nel Margins Other Margins and Equtes Total Margins and Equites Gross Long Term Debt Less:Portion Que Within One Year Net Long-Term Det? Otne;Non-Current Liabdites Short.Term Line of Crean Current Pomion -Long-Term Debt Ciner Current and Accrued Liabunes Current and Accrued Liabilites Detered Creads Tota'Liabilibes and Equives ip 116 PEECRrES: for Diesel 2014 2012 2013 2014 2018 2016 2017 0 7)')0 250800000 250800000 ©:250 800.90000o90Q° 0 0 ry 0 750,800,000 «280800000 =250,800,000 °r)9 (7.942.000)(18.884.000)(23 B2E 000) 0 0 0 0 242858000 234916000 ©.228.84 000 0 0 c °p)C)9 6 9 0 0 50 000 50.000 $0 000 e 0 0 6 5,108,222 10,059,396 14,782,473 o 0 0 0 0 0 9 r)0 0 ry 5,158,222 10 109.396 14 832.423 6 o ry 9 0 r) 0 0 348076222 248 075,386 6 0 °0 100 100 : 6 o o 0 °2146 100 4.300.915 ¢0 0 G 0 °° ¢o 0 0 2.119 100 218 815 2238 164 Q 5 D 0 0 o ° c 0 0 a 2.179.200 4301015 6 539.179 ft)0 0 0 248.857.0022 240,774381 «235,267 244 0 c 0 0 (8.172 644)(5 467 437)(5 787,279) 0 0 0 0 70,724.36 235 467,284 ©--229 $09 965 c ©c 0 0 0 Q 0 °0 6 ¢0 0 0 6 0 5172641 §457,437 $797 279 ©o 0 0 0 0 0 c S 0 0 5 172 6a)$457 137 $757 279 0 0 6 0 t)6 , Z Te OG 248016 222 245 025 386 241 B06 423 Balance Sheet -G&T Case #7 $10.08smnmBtu Gas (RIRP 2015 Esumate +30%);3X Mun Untdty Plant im Sernice Constructon Work in Progress Total Utility Plant tess Accumulated Provision for Depreciation and Amortization Net Uuity Plant Other Property and Investments Cash Short-Term Investments Other Current and Accrued Assets. Current and Accrued Assets Deferred Debits Total Assets Memberships Patronage Capaal -Beginning Current Year Capital Credit Retremenis Current Year Net Margins. Other Marg.ns and Equities Total Margins anc Equities Gress Long-Term Debt Less Portion Due Within One Year Net Long-Term Debt Other Non-Current Liabuines Short-Tecm Line of Credit Current Portion -Long-Term Debt Other Current and Accrued Liatiites Current and Accrued Liabitties Deferred Credits Tota!Liabilittes and Equites 2018 2019 2020 2021 250 800 000 250.600 000 256 £00,006 250 800 000 oO o iy Ve] 250 800 000 250 600 009 256.800 000 250 800 000 (31 768 000;439 796 000){47 652.000)(55 $94 000) 219 032 000 214 £90 000 203 148.000 195.206 000 t")6 0 LY) $0 006 50 000 $0.000 $0 000 19,254 747 23,452,369 27 349,768 30,919,809 i}a iy Q 19 304 747 23 502.366 27 (399.768 30.969 80% 0 Qo 0 0 234 552 4%226 175 e609 100 100 106 400 6 539 075 6 B26 662 T1186 234 13-519 629 Q 0 e o 2 267 603 2 325 52 2363395 2.388 477 a 0 0 [4] 8 826 782 11456334 13.519 729 15.908 206 226,509 965 223 436.025 2'7 026 539 210 267 604 (6 074 930)(6 407 G96)(6,760,436)(7.4332 260) 223.436 O35 257 026 039 210.267 604 203.135 344 c q i?)oO 0 Oo LP)6 6072 930 6 407 996 6.760 436 7 132 260 oO c fe)9 6973 930 €407 996 6 760.636 7 132 260 G Q Qo G 234 $92 369 117 Combined Balance Sheet Case #7:$10.68/;mmBtu Gas {RIRP 2015 Estate +30%);3X Mutupiies for Oresel Ubhty Plant m Service Construction Work in Progress Total Ubity Plant Less:Accumulated Prowsion tor Oepreciation and Amortization Net Utlty Pant Other Property and investments Cash Short-Term Investments Otner Current and Accrued Assets Curent ang Accrued Assets Deferred Debits Tota Assets Memberships Patronaye Capital -Beginning Current Year Capital Creat Retirements Current Year Net Margins Otner Margins and Equites. Tota!Margins and Equities Gross Long-Term Debt Less'Portion Que Within One Year Net Long-Term Debt Orne:Non-Cutrem Liabotes Short-Term Line of Creat Current Porton -Long-Term Debt Other Current and Accrued Liabilities Current and Accrued Liabuites Deterred Crecits Tota!Liabshes anc E quites 2o1t 2012 2013 2014 2018 2016 2017 312669801 350 178 8C1 354318276 «7B 35H270 ©SH.SHNOB «=00.84a 408 =773.085 8706482715658776967134046847.673 6.984 626 7.124.319 7.266 805 319122516 336761570 367 078680 «=385 202 G43 G66,528634 897.068.7268 730 350.625 (123.831 440)(133 398 670)1143 $86 956)(154 496 936)(174 162,000){194 747 260)(216 278 531)195261078 ©202362900217 438724 «=230705006 ©49236634 ©=-503271466 ©514.072 083 2120683 71988786 =D2GSR BSE «=232T7122.-23.724289 =24100.872 24677 457 409 620 217.812 426 168 434.692 499 386 502 283 511.298 0 3 0 0 $108,222 10,080.39 14,782,473 18374134 18.690.696 «=19.064479 «19445717 19.834.632 20231324 =206 35.651 16 733,754 19108425 16.490507 «=19.800408 «=25.436.260 ©«30702973 «Bb BH ETE §184 257 5 257 342 $362,489 5,465,738 5,576,133 $,690,716 5,804,530 240475622 «©2a3 717 456 =DEA GAOETA ©-«278333276 «=SAT.106786 ©S83 BIE OZ?§=--580 4B 748:arsnerses 2s pensesaze 00 snzersces 239675 24a 468 249 357 254 daa 259 $31 264 720 270012 97338533 5939186 =100.281 788 =108.234677 110984 167 117 655.527 124.589 530(882.406)(986902)(1.002.818)(4.052347)(1.108.842)(1 764.833)(1 858 B43) 4 486 059 $201 993 $955 707 6.601 837 7,781,202 6 608 837 $,338,45935874123656161373234438064913.883.131 3.960 793 4.040 0098766275104185416«=109216378 «415045802 «121 7OB IAD §«©-««-128815.043 136 369,168 106883449 «112 268971 -122822.184 -132862.304 389.483.3723 398.4072 511 402 BBO BNE (5126-476)(4.228.072)(4.383.846)(7.229276)(12,841 652)(10.865.263)(14.317 591) 101762971 =108 040899116 138.338 «=125.333.0058 =-AF6.622271 «384537 240 ©38H $63 305 1 229 022 1 253.603 1278675 1304 248 1.330.333 1 386 640 1364078 6.137 404 5 020 864 4 395.002 2342 245 $873,930 9206 201 9 052,007 5120 476 4228 072 4.383 846 7229276 =12.84"052 10865,263 14,317 S8114375696=14663210 14.988.475 15,258 604 18 560 776 15871930 16 189 369 75623638 ©23912 14623735523 «24827120 3a 778 698 35845364 «=39.556 967 13083 718 12871600 127.673.3938 13076 808 19347 401 13 608 229Deaea0es4©«279333276 «=S47 TOE Z96 ©SERB ODT §=-580 483748 118 Combined Balance Sheet Case #7:$10.08¢mmBtw Gas (RIRP 2015 Estimate +30%),3X Mult . 2018 2019 2020 2021 Untity Plant in Sennce 751370979 784.306.941 814.316.724 45 226.801ConstructionWorkinPragress74121417$60,384 7.719592 7 665.823 Total Utility Plant 758 783.060 799 667 325 622,028,216 853 092,624 Less'Accumulated Provsion for Deprecanon and Amortization 238 744,760){262 069 606)(286.369 003)(311 585.509} Net Ubitty Plant 520.068 300 529 787 719 $35 659.313 $41 $07 115 Other Property and invesiments 25,184 625 25 713.022 26 263 267 25 636.018 Cash 520 $24 529 935 $39.534 546,324 Short-Term Investments 19,254,747 23,482,369 27 349,768 30.918 808OtherCurrentangAccruedAssets21.048 670 21 469.643 21 892.036 22,337 O17 Curtent and Accrued Assets 40 823 S41 45.451 947 49 786,338 $3806,150 Deferred Debits :§$20,624 6.036033 6 150.814 6,283,010 Totai Assets 607 001 722 617.870 731 628.432 264 aagassase Memberships 275411 280917 286 533 232.262 Patronage Capitat -Beginning 132.059 146 146,308,910 148 582 772 187,740,710 Current Year Capnat Credit Retrements (1.980 687}12 101,634)(2.228,742)13,154 814}Current Year Net Margins 19 030.654 10 575.496 41,386 679 11.864 264 Other Margins and Equites 4 420.809 4.203 225 4.287 290 4373.0% Total Margins ara Equives 144 508,130 193,066 914 162,314,933 VV AS AT? Gross Long-Term Debt 406 535 565 416 O16 090 419,076,318 416.336 704 Less Portion Que Within One Year (10,281,088){14.945 642)(16.194 656)(56 243,248) Net Long-Tenn Debt 395.254.4757 401 070 448 402 681 663 400 093.453 Other Noo-Current Liabartes,.141076!1439 996 1 668 796 ¥49B.172 Shon-Tetm Line of Creat &151 486 8 OTT 301 3386 635 §228 067 Current Portion-Long Term Deb!96.2814 O88 44 G45,642 16.194 658 16.243 248 Otnet Current and Accrued Liabutes 16 543 156 16 B43 420 17 180.288 i?$23 894 Current and Accrued Liabilities 38 945 °30 37 266 362 BETO ETS =40.995.208 Deterred Credits 13 B8C 393 14 186 001 14 728 964 Total Liabities and Equites.5G%997 491 607 004 772 119 626 432 264 Case #7 2015 2016 2017 2018 2019 2020 2021 Trrseeseeessccss ESTIMATED BUSBAR COST OF NEW EKXLUTNA PLANT "71S tt Sot eeeNetInstalledEstmatedE:d Estimated Capactty of Energy Req'd Cost of New Cost of New Capital New Plant from Eblutna Vanable Required Projected Eklutna Power Eklutna Powertavestment{kW)Wartsia Piant interest Depreciation O&M Fuel Cost Margins Cost (S/MWh)($iWh) 250.800.000 162.222 714.974 628 43 794,000 7 942 000 7.950.518 66,225.171 2.069.100 96980789 $135.6 $0.13564 0 162,222 726 920 248 13,524.336 7.942 000 8.164 187 66.978 086 2.028 650 98.637 260 $135.7 $0.13569 0 162 222 739,045,051 13.239 844 7942 000 8.383.366 =68.776.212 1985976 100.327 396 $135.8 $0.43575 0 162 222 751,351 727 12.939 698 7,942 000 8.608.197 70 620 698 1.940 955 102.051 548 $135.8 $0.493582 0 162,222 763.843,003 12.623.048 7 942.000 8.838822 72.512.720 1.893.457 103.810.047 $135.9 $0.13590 0 162,222 776.521 648 12,288,982 7,942 000 9.075.388 74453485 1.843.347 =108 603 203 $136.0 $0.13600 0 162.222 789,390,473 11,926 $42 7 $42 000 9318547 76.444 234 1.790.481 107 434.302 $136.1 $0.13609 120 Case #8 $13.34/mWh Variable O&M (2015 Base Case +20%) 121 Case #8:$13.34/mWh Variable O&M (2015 Base Case +20%) Retail Rate Projection (sn) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Sales Revenue per kWh Soid (Annualized)01490 01617 01669 C1727 O1778 018146 0.1843 0.1871 0.1895 01924 01944 Cost of Power Projection (ia) 2011 2042 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source Chugach Flectric Association,inc. (includes assigned hydro)0.09549 009836 0.10131 0.16435 New Eklutna Generating Plant 011767)0.11754 0.11742 0.11731 0.11721 0.11711 011762 Bradley Lake Hydro 0.04492 004582 004674 004767 004862 004960 005059 Eklutna Hydro 0CG591 000609 0.00627 000646 000665 000685 000706 Overalt 0.10891 0.10899 010908 0.10917 0.10926 010936 0.10946 122 income Statement -Distribution Case #8:$13 34/mWh Variable O&M (2015 Base Case +20%) Sates Revenue Otner Elecine Revenue Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Transmssion Expense BDistnoution Expense -Operation Oistnbutior Expense -Maintenance Consumer Accounts Expense Customer Sernce and Informatonai Eapense Sales Expense Administrative and Genera!Expense Total Operation and Maintenance Expense Daprecavon and Amortization Expense Ta»Expense-Property ano Gross ReceiptsTaxExpense-Other interest on Long-Term Debt interest Charged to Construction (Creat) interes!Exponse -Other Other Deductions Totat Cost of Electric Service Patronage Capital and Operating Margins Non-Operating Margins -Interest Allowance for Funds Used During Construction fnoome (Loss)from Equity Investments Non Operating Margins -Other . Generation and Transmission Capital Credits Otner Capna!Credits and Patronage Ovens Extraordinary tems Net Margins TIER Target Achieved TER Overatt Rate Change Required -Current Year Overall Rate Change Required -Cumulative (2011 Base Year) SRF Rate Chango (Base Rates Only,No WPCRA)-Current Year SRF Rate Change (Base Rates Onty,No WPCRA)-Last Three Years Modified Debt Service Coverage Ratio -Current Year Modified Debt Service Coverage Ratio -Bes!2 of 3 Years Equity Ratio 2011 2012 2013 2014 2015 2016 2017 3G3.$70 177 194.130 400 119 545 345 125 $70 768 131.207 120 135,908,204 140,124.979 2356 860 2 380 429 7,404 233 2 428.276 2 452 558 2.477 084 2.501.854 105.927.037 116,510,829 121,949,878 127,999,043 «133,659,677 «138,385,287 -142,623,033 C 9 0 0 0 0 0 66 £45 308 74 906 320 78.310 813 81 870 039 8TH A412 68.101.266 89 452 001 33.450 34.119 34,801 35.497 36 207 37,294 38.412 3 680,316 3.141 $22 3.204 764 3 268 856 3334 233 3.434.260 3.537.288 3.795 872 3875 889 3.953.387 4032 485 4413 104 4236 457 4.363.5923,164,232 3,227,517 3,292 067 3387,908 3.425 066 3,527,818 3.633 653 370 591 176 003 177 483 981033 184 653 190 193 195.899 o 0 0 0 6 0 °10,668,862 10 882,239 11,098,864 11.921 882 11,548,319 11,864.769 12.251.632 7.362.631 "96.241,990 100.073.1968 104.067.670 -«108,377.996 «144.422.097 -«-199,5 17.456 7.790 000 8 383.516 6 930 360 9 557 $04 10.272 618 11078 962 11,907 997347655380.793 386,505 392 303 398.187 604 160 410.223 B54 743 708 638 722 811 737 267 752 012 774573 797,810 5 923 305 6 237 635 6617 452 7155 828 7 781.202 8 698.837 9.338 459 (33 000)(33 660)(34 333)(35 029)(38.720)(36.435)(37.163) 250 123 $53,437 125.522 109.875 58,556 146.848 227,705 188 364 162 131 186 974 199 693 203 891 210 008 216.308 102,523,824 112,264,485 «=«197,017,488 =422.189,321 -«428.808,742 -«132,609.049 --196.973,724 3,403,213 4,246,344 4,832,092 $800,722 4,850,936 5,686,238 6,249,309 152 692 158 192 156 356 356 523 158 694 158 B68 159,08812.006 42 240 12,485 12:734 12 989 13,249 13.914 0 0 0 0 °0 0 (§828)(7.033)(7 244)(7461)(7,685)(7.536)(8,183) 329 982 360 000 250 000 200 000 2119 100 27 181 815 2238 164 575 000 592.250 610918 626 318 647 168 666 $83 686 580Py00000f) 4.486.059 $.301.993 §.955.707 6,801,837 7,781,202 8.698 837 9.338.459 ce leacas clogisee:eileen cea -sirntese 176 185 190 198 200 2.00 200 176 1.85 1.90 1.95 2.00 2.00 2.00 857%347%391%341%245%197% 87%42 04%18 955 19 36%23 81%23 73% Cay 493%241%0 14%329%2.48% 17 28%44 02%21%4.47&£B45 fare, 15?1693 eval 1985 1550 7578 1 659 4839 1952 4.952 +780 4733 415%41.7%41.2%412%40 4%39.9%395% 123 fh Shar,t-Distributi Case 88 $13.34/mWhn Variable O6M (2015 Base Case +20%.) Sales Revenue Otner Elactne Ravenve Operating Revenue and Patronage Capital Power Production Expense Cost of Purchasea Power Transmission Expense Orstribution Expensa -Operation Distribunon Expense -Maintenance Consumer Accounts Expense Customer Sennce and Informational Expense Sales Expense Aormnistratve and Generat Expense Total Operation and Maintenance Expense Deproaation and Amortization Expense Tax Exponse -Propery and Gross Receipts Tax Expense -Othar Interest on Long-Term Debt interest Charged to Construction (Creut) Interest Expense -Other Other Deductans Total Cost of Electric Service Patronage Capital and Operating Margins Non-Operating Margins -Interest Atlowance for Funds Used Dunng Construction Income {Lass}trom Equity investments Non Operating Margins -Other Generation and Transmission Capital Credits CGtner Capital Credits and Patronage Dwidends Extraordinary items. Net Margins TIER Target Achieved TIER Overall Rate Change Required -Current Year Overatl Rate Change Required -Cumulative (2011.Base Yeas) SRF Rate Change (Base Rates Only.No WPCRA)-Current Year SRE Rate Change (Base Rates Only,No WPCRA)-Last Three Yea Modified Debt Service Coverage Ratio -Current Year Modihed Debt Service Coverage Ratio -Best 2 of 3 Years Equity Ratio 2018 2019 2020 2024 144375,055 148,.405567 152,953 BAB =156,906 7352526873258714225776632603440 146,901,972 150,957,708 «155,534,511 --189,892.175 0 7)0 0 SO S08 765 G?3£1 682 93 820 646 $5 316 333 29 965 40 752 4174 43,233 3643 407 3.752.703 3.665.290 3981 249 4 494 499 4.629 334 4768214 aGit 261 3,742 663 3.854 $42 3.970.591 4989,708 201 776 207 829 214,064 220 486 0 c 6 0 12.619 160 12 997,735 13 387,667 13.789.297 195,649,034 ©147,834.983 120,068,648 +=-=-122,351,5671270081813505.878 14 333 564 15 137 203 416 276 422,622 428 961 435 395821,744 B48 306 871.788 897,94250.930 651 10.575 496 14.386.679 11 BGA 284 (37.907)138.665)(39 438)(40 227) 278 308 228,787 136,933 86.741 222 797 720 481 236 366 243 457 140,030,714 943,604,978 =147,423,501 150,974,362 "6,871,258 "2 382.730 8.108.005 8,537,813 189 226 159 410 759,599 759.791 13 784 14 060 34 341 34628 0 9 0 0 (6.398)18,650)(8,909)(9.176) 2.287 603 2529 552 2363 395 2.388 477 707 477 728 393 750,245 772 782 9 Q 0 0 160% 124 159% 6 pas, 1 68€ 4,933 409% Income Statement -G&T Case #8:$13.34/mWh Variable O6M {2015 Base Case +20%) 2011 2012 2093 2014 2085 2016 2017 Sales Revenve 0 a )"0 86736 412 86,101 266 88,492.01 Other Electnc Revenue [)0 °0 (-)o fs) Operating Revenue and Patronage Capita!0 L)o 86,736,412 88,104 266 89.492,001 Power Producbon Expense it)id)°0 60.457 614 62 133.707 63 781,760 Cost of Purchased Power oO 0 is}Q 2.443 699 2 492 673 2,542 424TransmissionExpense00te)o a [e)Qo Distnbution Expense -Operation i¢]0 it}oO is}is)ft) Oistrbuton Expense -Maintenance ie}Q 0 c 8 G ° Consumer Accounts Expense is)6 ig Q 0 0 a Customer Sennice and Informaponal Expense Qa ic}Q °o Lt ie} Sales Expense 0 6 0 [o)oO )is) Administratve and General Expense is}o it}(9)is)iy ft) Totai Operation and Maintenance Expense 0 6 0 8 $2,931,312 64,606,279 $6,324,184 Depreaation and Amortization Expense fe)°LY fe)7 $42,000 7 G42 000 7.942.000 Tax Expense -Property and Gross Receipts is}0 is)ie]fo)a o Tax Expense -Other 0 (4)o 3 0 [t}a Interest on Long-Term Nebt 0 L)0 c 13,794 000 13524 336 13.239 641 Interest Charged to Construction (Credit)fe}(t)0 i}ie)iJ oO Interest Expense -Other is)0 ie)c [)Q 0 Other Deguctions ie)0 te)ie)Q is)ie) Total Cost of Electric Seruice 0 0 0 0 84.667,312 86,072,616 87,506,025 Patronage Capital and Operating Margins 0 0 te)Q 2,069,100 2,028,650 1.985.976 Non-Operating Margins -inierest ie)[?)0 0 59.000 153,164 252 188 Allowance for Funds Used Gurng Constructon oO i)oO [)6 0 ie] income (Loss)from Equity Invesimenis.ie)&iy o Q ie)G Non Operating Margins -Other o i)G ity 0 a 9 Generation and Transmission Capital Credits fs)0 Q ij 0 iy Bp} Orner Capital Credits and Patronage Oividenas 0 0 °0 a 0 c Extraortinary Hems is}Lf]is}0 fe]0 iy Net Margins 0 ae 0 0 5 Operating TIER Target 000 Goo 000 000 118 115 i Achieved Overatl TIER 000 ca G00 600 195 16 7 Equity Ratio ooK%o0o%00%o0%0.9%18%27% 125 income Statement -G&T Case #8:$13.34/*mWh Variable O4M (2015 Base Case +20%) 2018 2019 2020 2021 Sales Revenue 90 908 765 2 351 682 93.620 848 95 316.333 Otner Elecine Revenue i?)it)ie)© Operating Revenue and Patronage Capital 90,908,765 92,351,682 93,820,848 95,316,333 Power Proguction Expense 65,492 830 67?246 038 69.048.478 70 895 306 Cost of Purchased Power 2.593.273 2 645 138 2 698 O41 2 752 002 Transmssion Expense [9]°°° Oistnbubon Expense -Operation 0 [*}ie)[} Orstnbutron Expense -Maintenance is)0 0 ie} Consumer Accounts Expense QO 0 [s)Q Customer Sernce and informations)£xpense 0 0 0 Q Sales Expense °0 0 Q Acministauve end General Expense [¢)[)9 ° Total Operation and Ataintenance Expense 68,086,112 69,893,176 71,746,519 73,647,309 Depreciation and Amortization Expense 7942 000 7 942 000 7 $42,000 7 $42 000 Tax Expense -Property ano Gross Receipts i)i)te)Q Tax Expense -Other 9 oO e i} interest on Long-Term Debt 12.939 698 42.623 048 42 288.982 11 936 $42 interest Charged to Construction (Credit)i)ie)[e)fe) Interesi Expense -Other 6 i)QO 6 Otner Deductions (e)0 [¢)Q Total Cost of Electric Service 88,967,810 90,458,224 91,977,501 93.526.852 Patronage Capital and Operating Margins 1,940,955 1.843,347 1,796,481 Non-Dpetating Margins -interest .346 646 525,047 597.695 Aliowance for Funds Used Dunng Construction tC)0 (9)0 Inconre Loss)from Equity investments id [e]Q i) Non Operating Margins -Otner °°°o Generation and Transmission Capital Credits 0 0 Pe)9 Other Capital Credits ana Patronage Dividends 0 [)o te) Extraordinary #ems.iy iy Py ta) Net Margins 2,287,603 Operating TIER Target TS rts 118 118 Achieved Overalt TIER 116 116 119 120 Equity Ratio 37%4ag%sa%7.0% 126 Combined income St t Case 88:$13.344nWnh Variable O&M (2015 Base Case ¢20%) Sales Revenue Other Evectnc Revenue Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Transmussion Expense Distribution Expense -Operation Distribution Expense -Maintenance Consumer Accounts Expense Customer Service and informauonai Expense Sales Expense Admuustrative and General Expense Totai Operation and Maintenance Expense Depreciation and Amortization Expense Tax Expense -Property and Gross Receipts Tax Expense-Other Interest on Long-Term Dent Interest Charged to Construction (Credit) interest Expense -Other Owner Deductons Total Coat of Electric Service Patronage Capital and Operating Margins Non-Operating Margins -interest Allowance for Funds Used During Construction income (Loss)from Equity Investments. Non Operating Margins -Olher Generation and Transmission Capital Creaiis Other Capaal Credits and Patronage Dividends Extraordinary ttems Net Margins Achieved Overalt TIER Overall Rate Change Required -Current Year Overall Rate Change Required -Cumulative (2011 Base Yoar) SRF Rate Change (Base Rates Only,No WPCRA)-Current Year SRF Rate Change (Base Rates Only.No WPCRA}-Last Three Yoars Equity Ratio 2011 2032 2013 2014 2015.2016 2017 103,570,177 -494,130.400119545.305 125.570 768 131,207 120135908204 «=140,121.1782.956.860 2 380.429 2404 233 2.426 275 2,452.556 2.477.064 2,501 854 105,927,037 116,810,829 121,949,578 =127,999,043 «133,659,677 -138.385.287 -«142,623,033 i)r)0 o 60,487,614 62,113,707 63,781 760664452087490632076,310 613 81.670.039 2.443.699 2.492 573 2.542 424 33.450 3atig 34.801 35 497 36.207 37 294 38.412 3,080,316 3147 922 3208 761 3,268 856 3334233 3.434 260 3,537 288 3.799 872 3.875 869 3953 287 4.032.455 4113 104 4.236.497 4.363.592 3164 232 $227 $17 3.292 067 3.357 908 3.425.066 3.527 818 3.633 653170591174003177483181.033 184,653 490.193 195,899 0 0 Q 0 0 0 0 10.668 862 10,882.239 11,098 864 11,321,882 414,548 319 11.896 769 12,251,612 87,362,634 96,247,980 100,073,196 104,067,670 85,572,896 87,927,110 90,344,6397,760,000 8 383.516 8 930.360 9,557,504 16,214,618 19,020,062 19,849 627347,058 380 793 386 505 392.303 398 187 404 180 410.223 654 7.43 708,638 7228141 737 267 752,012 774 $73 797.810 5,923,305 6 237 636 6617 452 7 159.828 21 $75,202 22223 173 22,578,300(22,000)(33,680)(34,333)(35,020)(35.720)(36,435)(37,163)250 123 152 437 125 $72 109 875 58 S56 146,848 227 705 188 264 992431 198 974 199 893 203.891 210 008 216 308 102,523,824 142,264,485 «197,017,486 =122,189,321 126,790,642 130,670,399 =-134,387,748 3,403,213 4,246,344 4,932,092 5,809,722 6.920,036 7,714,888 8.235.285 152 692 198 192 158 356 188 $23 208 694 312.032 411 233 12.006 12 240 12 485 12734 12.986 13,249 13514 0 0 0 o 0 hy f) (6 828)(7033)(7,244)(7 461}(7 685)(7,818){8,153} 349 982 300.600 250 000 200 000 @ ©o 575 000 592 280 610018 628.318 647,168 666,563 686 S60 °0 0 a G c)0 5,301,993 $,955,707 8.698.837 9,338,459 :ze :=assesecrs ens = 176 18s 190 +95 136 139 144 857%347%3.91%241%2.45%1.92% e575,12 aS.18 95%19 36%2181%2373% 6 88%192%24%014%3.29%246% 17 83 14.02%721%447%5 84%591% 415%41.7%412%41.2%22.3%22.8%23.5% 127 Combined I;c.* Case 88:$13.24/mWh Variable O4M (2015 Base Case +20%) Sales Revenve Other Electric Revenue Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Transmission Expense Distnbuton Expense -Operation Distnbution Expense -Maintenance Consumer Accounts Expense Customer Senmce and informational Expense Sales Expense Aominstrauve and Genera!Expense Total Operation and Maintenance Expense Depreciation and Ama:tzaton Expense Tax Expense -Property and Gross Receipts Tax Expense -Othet Interest or:Long-Term Debt Interest Charged to Construction (Credit) Interest Expense -Othe Otner Deductions Total Cost of Electrte Service Patronage Capital and Operating Margins Non-Operatng Margins -imerest Allowance tor Funds Used Dunng Construchan Income (Loss)trom Equity invesiments Non Operating Margins -Other Generation and Transmission Capital Crearts Other Capial Creaits and Patronage Dividends Extraoranary items Net Margins Achieved Overall TIER Overall Rate Change Required -Current Year Overall Rate Change Required -Cumutative (2011 Base Year) SRF Rate Change (Base Rates Only,No WPCRA)-Current YearSRFRateChange{Base Rates Onty,No WPCRA)-Last Three Yea Equity Ratio 2018 2059 2020 2021 144375096 148405567 -152.853848 156.908.735 2526 873 2582 142 2,577 663 2,603,440 146,907,972 150,957,708 155,531,511 459,512,175 65,402,839 67 246,038 69,048 478 70 895 308 2593 273 2 645 136 2,698,041 2,752 002 39 565 40 752 41974 43.233 3.643.407 3.752 705 3865 290 3:981.249 4 494 4990 4629 334 4 768.216 4.913,261 3742 663 3.854 942 3970591 4.089 708 201 776 207 825 214 064 220.486 °0 8 0 12 619,166 12 997 735 13387 667 13 7a9 207 92,827,181 95,376,478 97,994,339 100,682,544 20 642.916 21 447 876 22 275 564 23 079.203 416,376 422 622 426,961 435 396 B21 74d 846 306 871.786 897.942 22.970 350 23198 $44 23 675.663 23 800,826Q7,907/)(3B 665)(36.438)(40.227) 226 306 228 70?136 933 84,741 222 228 461 236 366 243 457 $38,089,759 «141,711,521 145,880,154 149.183,881 8,812,213 9.246.187 9,951,357 10,328,294 $05,674 595,505 79 646 757,786 13 784 14 060 ares!14628fy¢0 Qo (B,298)18,650)(6 909:(9.176) 0 c 6 ° 707,197 728 363 750 245 772 752ty)c 9 fy) 70,030.651 10,575,496 14,386.679 14,864,284 144 146 146 160 1.87%160%1.96%1.38% 25 60%20 20%29 16%30 56% 2388,3444 235%159% pas arms eee Sas% 24.4%252%26 3%27.2% 128 Balance Sheet -Distribution Case 88.$13.346/mWh Variable O2M (2015 Base Case +20%) Ubiny Piant in Service Construction Work in Progress Tota!Uuity Plant Less Accumulated Provision for Depreaation and Amortization Net Utdity Plant Other Property and Investments. Cash Short-Term Investments Other Current and Actrued Assets Currant and Accrued Assets Deterrad Debits. Tota!Assets Memberships Patronage Capnal -Beginning Curent Year Capita!Creda Retirements Current Year Net Margins Other Margins and Equittes Total Margins and Equitas Gross Long-Term Debt Less'Portion Due Within One Year Net Long Term Deot Otner Non-Current Liabiibes Short-Term Line of Credit Current Pomwon Long-Term Dept Other Current and Accrued Liabines Carrent and Accrued Liabuhes Deferred Croats Total Liamites and Equites 279 333 276 323.474 547 2011 2012 2013 2014 2015 2016 2017 312669801 «330 175601 =354 315276 «=378355270 «408.744.0084 084.408 =472 283.8206.452.755 6.581 769 6.715.404 6.847 673 6 984 626 7.124.319 7.266.805 319122516 «336,761,570 «364,028.80 «385,202 94315726654 «=447,168,726 ©479.550 625 (123.831 440)1133398670)(143.589.9561 (154 496.936)(166 220.000)(178.863.260)(192 452 531)195291076 --203,362.900 «217.438.7124 «=730708006 «=24S S08 E34 =268305.466 787 058.093 24.296 536 21 988 786 22 648 804 23.277 122 25 643 389 28 491,787 31.216 531 409 620 417,812 426 168 434 652 443 386 452.253 461.298 a ")0 0 0 ry 0 18 324,136 16 690 616 13.064 429 19.445.717 1 834 632 20.231.324 20,635,951 18,733,754 19 106,429 19.490 597 18,650,409 30 278.017 20,683,576 21,097,249 5 1§4 957 5 27 342 5 362 489 5 469 739 $579,133 5 690.716 5,804 $30 240,475622 249.717.456 -2G8G40614 «=279.333.2768 «=012099174 «323171 SAT «=345 216 408 ::=2 piszezces senezezes eucersace 239,675 244,468 289,587 254,344 249,431 264,620 269.912 92.33 633 $5939 186 «100 281 788 =105 234677 «=110984 167 117 BSS S27 1224 589 536 (882.406)(959 392)(1 002 818)(3052 347)(1 108 642)(1 764 833}(1 868 843)4,486,059 5.301.993 5.955.707 6.801 837 7,781,202 8.698 837 9,338,459356741236591613732Ma38069913.862131 3.960 793 4 040 009 96,766.273 104 185 416 =109.216.378 «=-«135045 S02 «=«121 798.089 «128.814.943136 369 068 106882449 132 28B.S7t =122.522 184 =132,862.334 «143,566,301 194.678 131 168,613,652 (5,120,478)(4 228 072)(4 383,846)(7 229 276)(7 668.410}(5,408 126)(8 560 312) 101762971 108040899 «178 138.338 «=125.343.058 -«138897831 -149.270005 -«*160.053.340 +229 022 +283.603 1278 675 1304 248 4.330.333 1356 $40 1 384 075 6.137.468 5,020,864 4,395,002 2342285 5.873.930 9,108,201 $082 0075.120 478 4 228 O72 4383 B46 7 226 276 7 668 410 5 408 126 8 560 3121437569814663240149564751525560415$60 716 15.871 930 16.189 369 26.633 646 33.912 146 23735 323 34 827 128 25 103 056 30 388 258 33 801 648 42.083.748 12 326 392 47 571 900 12 623 338 43.079 805 13.343 404 13 60H 229PaOaTSbrea345216404 129 303 209 174 ° Balance Sheet -Distribution Case 88:$13.34/mWh Variable OSM (2015 Base Case +20%) Utity Ptant in Service Construction Work in Progress Total Unity Plant less Accumulated Provision tor Depreciation and Amortization Nel Utity Plant Other Property and Investments. Cash Short-Term tnvesiments Otner Current and Accrued Assets Current and Accrueo Assets Deterred Debts Tota!Assets Memberships Patronage Capiat -Beginning Current Yeas Capita Creat Retremanis Current Yaar Net Margins Otner Margins and Equities Tore!Margins and Equites Gross Long Term Debt Less Portion Due Wihin One Year Net Long-Term Debt Other Non.Curent Liabiites Short-Term Line of Creat Current Parton -Long-Term Geot Other Current and Accrued Liabres, Current and Accrued Liabbhes Deferred Credrs Tota'Liawives ano Equies 2018 2049 2020 2024 500 570.919 533 506 a4!$63 $16 224 594 426 801 7.492 143 7 $60 384 7711 $92 7 865.823 $07,963,060 544,067,325 571228.316 602,292 624 1206 946760)(222 359606)(238.717003)«(265 $91 509) 301,036,300 398,707,719 332,914,333 346,301.145 34011311 36 869 25b 39 782.896 42 744 124 470,524 475.535 485.534 499 324 0 0 [oy () 21048 670 21 469.643 21 899,036 22,337,017 21,519,164 21,949,578 22 388.570 22.836 341 5.920 621 6 039 033 6,159 814 6 283 010 362,487 426 383 565 587 400 842,592 478 164,591 =ze sseieuned peastecca zansaxras 27831 780 Bt?286,433 292,162 $32 059 146 180 108 $10 148 $82 772 1§7 740 710 (1.980.887)(2 101 634)(2 228 742)(3 184,814) 10,030,651 10,575,496 14,986,679 11 664 2844120809420322542872904375.036 144.505 030 353 066 814 162 314 433 471.198 377 177.025 600 192.580 655 202.048.279 208.069 097 (4.207,158)(8 537 646)19.434 220)(11 110 988) 172,818 442 184 042 409 192 614 059 196.958 106 1 439 996 1468 796 3498 172 5.15)456 5,477 303 3,389,635 S228 067 4207 158 8537 646 9 434 220 14110 968 16 $13 156 46 643 420 17 180 288 17 §23 894 20.871 601 30 BLE 367 30 004,143 34,862 948 14 458 G0}14.441 161 34 729 G84 406 642 592 4.6 1645913e3565$87 130 Balance Sheet -G&T Case #8:$13.34:Wh Variable O£M (2015 Base Case +20%)204 2012 2013 2014 2015 2016 2017 Unity Plant in Service 0 o 0 0 280,800,000 250,600,000 ---256.800,000 Construction Work in Progress is}0 i+}is]a ce)fe) Total Unity Plant [): a a [e)256 806,000 250 800.000 20.800 000 less Accumulated Prowsion for Depreciation.and Amortization o iz}ie]°(7,942,000)(15,884,000){23 826,000) Net Utilty Piant [°)G G a 24%858 060 234 916.000 226.974 000 Otner Property ang Investments ie)0 is)is}[)0 is) Casn is}ie}Q G $0.000 50 000 50 000 Shod-Term Investments [e)90 i')i 5.108.222 10.059 396 $4782 423 Other Current and Accrued Asseis id 0 i']o Q 0 Q Current ana Accrued Assets Go ie]i}it}$156 22 10 109 396 14 832 423 Deterreo Dedits 0 i)[2]©0 a iY) Total Assets oO B 9 248.016,222 245,025,385 241,806,423 ns eivtaises re heetsanee sre ==zs see st Memberstups.0 o QO G 100 100 100 Patronage Capital -Beqaning ic)C G iP)c 2119 100 43069015 Current Year Capitat Creda Reurements G 6 0 °o 0 ° Current Year Net Margins is)Qo le)i)2.119.900 2.381815 2236 164 Other Margins and Equities °0 o °ie]0 [e) Total Margins and Equites [s)a te)o 2.419,206 4303 016 6.539.179 Gross Long-Tecm Debt i')[?)i)ie}245 897 022 240,724 381 235 267 244 Less Porton Due Yithin One Year i Q is)Oo (5 172 641)(5 487,137)(5 757,278) Net Long-Term Debt [ey o (+)240 724 381 235 267 244 220 509 065 Othe:Non-Current Liabutes,C C 0 6 oO ¢i] Shon.Term Line of Credit 9 ie]i)0 6 is]i) Current Parian -Long-Term Debt 0 iA fe)Q $172 641 §467 137 5787 279 Other Current and Accrued Liabilibes Ls)is)G i)is]ie]Ly Current and Accrued Latiimes 6 oO é 0 $172 644 B45 137 8757 279 Beterred Creaits ie)c 6 ig c i) Total Liatibtes and Equities )G 249,808 423 131 Balance Sheet -G&T Case #8:$13.34/:mWh Variable O&M (2015 Base Case +20%} Utility Plant in Service Construction Work in Progress Tota!Utility Plant Less Accumuiated Provision for Depreciation ang Amortizatoun Net Untty Piant Other Property and Investments Cash Short-Term Investments, Otner Current and Accrued Assets Current and Accrued Assets Deferred Debts Totai Assets Memberships Patronage Capital -Beg:nning Current Year Capital Credit Retirements Current Year Nel Margins Other Margins and Equities Total Margins and Equites. Gross Long-Term Debt Less Portion Due Within One Year Net |ong-Term Debt Other Non-Cutrent Liadurtes Short-Term Line of Cred! Curent Porton Long-Term Debt Other Current ang Accrued Ladies, Current and Accrued Liabsines Deterred Creats Tota!Lianitines and Equites 2018 2019 2020 2021 250800000 250 800.000 -«-250.600,000 =250,800.00000Q0 260600000 ©756 800000 «=780800000 ©2586.800.000 (31766000)(397400000)(47.652.000)(85 $94,000} 21932000 ©211090009 «203.148000 ©185 206 000 6 0 0 0 60 000 50 000 50 000 50.000 19.254 747 23-452 369 27.345 768 30.919 BOS 0 0 0 ry 18.304 747 23 507 369 77,299 768 30,969,809 9 0 0 0 238 336 747 230547768 2 300 109 400 1006539.079 5 876 662 14186 234 13 519 629')0 0 0 2,287 603 2,326,552 2,363,395 2.388 477 0 0 o ° 8 826 782 11 156 334 13519729 15 808.206 229,596,965 723.436.0385 «217 023,039 «=-219.267.604(6 073 930)(6407 996)(6.760.436)(7 132 260) 223436035 717 6280338 «©.210267604 703.135 34a °Q 0 0 ¢0 0 06,073,936 6 AGT 646 6 760 436 7 142.260 e a 6 0 6 073.430 (art 996 6 760.436 7,232 260 ° 132 Combined Balance Sheet Case 88.$13.34/mWh Voeriable O£M (2015 Base Case ¢20%) Utitty Plant in Service Construction Work in Progress Tota!Utity Piant Less'Accumulated Provision tor Depreaation and Amortization Net Uuhty Fiant Othe:Property ane Investments Casn Short.Tenn InvestmentsOtherCurrentandAccrued Assets Current and Accrued Assets Ceferrod Debits Totai Assets Memberstups Patronage Capital Beginning Current Year Capital Creat Retirements Curent Year Net Margins Oiner Margins and Equites Tota!Margins ang Equities Gross Long-Term Dedt Less'Porton Oue Within One Year Nel long Term Dept Other Non-Current Liatuites Short Term Line of CreditCurrentPorton-bong Term Debt Otner Curent and Accived Liabites Current and Accrued Liatiibes Detened Credits Tolat Liabibes and Eoutes 2014 2012 2013 2014 2015 2016 2017 312669801 350179601 354315276 «378385270 «659 54S 008 «=«B90 Baa 408 =773.083.827064627156$81 765 6713 404 6 B47 673 6 964 626 7.124.319 7.266 805 BG 127516 «3368 ET SPO ©361.028 680 ©»365 202 843 «G66 528634 687 SUBT2E «730.350.8625 (123.831 .440)1133 398670)(143.559956)(154 496.936)(174.162.000)(194.747 260)(216 278.531) 195261076 203362900 «217 438724 «©-230706006 «=«492 66634 ©-503.221466 «=S14 072 O99 21 266 836 2)988 786 22 648 B04 23277 122 23,724 289 24 190.672 24 677 452 409.620 417 812 426 168 434 692 453.386 502.253 511.298Pyo005.108 222 10,059,396 14,702,423 16324 134 18 690 616 49 064 429 19 445 717 19,834.632 20 231 326 20 635 981 18733 754 19 308 429 19 490 597 19 880 409 75.436 240 30.762 973 35 029 672 5 154 287 5 287 342 5362 489 5 465 739 5,578,123 5 660 716 5,804 530 240475 622 S517 456 264940614 =«779939276 «547.106 296 583.856 027 239 676 24d 468 249 367 284 344 259531 264 720 270012 §2 335 533 95939186 -100.281,788 «=«105234677 110.984 1G7 137 655527 124 $89.530(882,406)(959.392){3 062 B16)(1,052 347}(0.199 842)(1 764,833}(1,868 643) 4 486 059 5301 963 $955 707 6 801 837 7.789.202 6.698.637 9.238.48935874122659.161 3732 344 2806 991 3683 131 3.960 793 4040 009$6623 «104 TBH 416 109 216.378 «=15045502 «=124,708 189 «=128.818.0483 «136 369 168 WE BES 4G 1D 268971 «122872184 132567334 «39.463 223 -395.402511 «403.680.896 (8 120.478)(4228 072;(4 363 846)(7.226.276)-(12.841052)-(10.888.283)(14.337.$8t) 101762971 =106040899 =-118.438.338 «=175333058 «=376622271 «=«384.537.2489 «386 $63.305 1229 072 +253603 1278675 1304 248 1330333 1356 S40 1384 07@ 6 137.464 5 020 664 4395 607 734?249 §873 930 9.108.201 §052 007 5120478 4226072 4383 848 7-225 276 12 844 052 10.865.263 44.317 59114.375 696 314.663 210 14.956.475 15 255 604 15 $60 716 18 871.530 16 189 365 25.855 636 oN 912 146 23735 322 24 827 129 34.275 698 35 645 304 34 558 967 woes fie 42.S71 800 1?623 338 13 076.805 43349.401 13.608 229 2a 47h E22 580 483 746 133 279 333 20 S47 106 296 563 896 027 ae 0 Combined Balance Sheet Case #8:$13.34/mwWh Variable OSM (2015 Base Case +20%) Utthty Piant in Sernwe Construction Work in Progress Total Utility Piant Less Accumulated Provision for Depreciation and Amonization Nat Utaity Plant Otner Property and Investments Cash Short-Term investments Otner Current and Accrued Assets Current and Accrued Assets Deferred Debris Tota!Assets Memberships Patronage Capital Beginning Curent Yeai Captal Credit Retirements Currar'Year Net Margins Other Margins and Equities Total Margins and Equites Gross Long-Term Debt Less.Portion Due Within Cne Year Net Long Tezm Debt Otner Non-Current Liapiines Short-Term tne of Credit Current Porton -Long-Term DentOtherCurrentandAccruedLiaduities Current and Accrued Liabuitres. Deterred Creaits Total Liabunes and Equities 2018 2019 2020 2021 751,370919 784,306,947 814,316 724 45 226,808 7412141 7-560 384 7711 592 7 B45 823 758783060 «791 867.328 =22028316 «=853.082.6274 (738 774,760)(262 069.606)(786.369.002)1311 585 506} 520068 306 =829797719 «=835.659.3713 541 507 115 25,184,629 25,713,022 26,263,267 2€,6%,010 526 524 $26 035 539.534 546.324 19254 747 23452,368 27 349.768 30.919 B0921,048 670 21 469 643 21 899 036 22 337 C17 40 623.041 45 45:947 49 766 338 53 306 150 $920,621 8 039.033 8.165.814 8 283 010 607 001 722 628 452 294 275 451 280 917 286,533 292 262 137 059 146 146 508 $10 146 5B2 772 157 740.710 17 980.687)(2 101 634)12 226 742)(3 184 B14) 10,030,651 12.575 496 14,386,679 11,864 2864,120 809 4 203.225 4 287 290 437304 144 $05 130 163 266 Gia 162.314 533 V1 448,477 408 535.565 416,916,090 419,076,518 416,328,701 {10 281 08b)114 945 642){16 194 658)(18 243 248) 396 254477 401 076 448 40?681 663 400 083 453 44\5 76!1,439,908 4 SE,796 4,498,172 9 151 486 §477 301 3 369.635 §228 067 10,281,088 14,945 642 16 494 656 1B 283 248 16 $13 15€16 643 470 TT 180 738 17 $23 854 35 945 73C AF 266 362 36 764 E79 40 995 208 13,862,392 12°58 Got 14.481,261 34.729 9B4$91 997 491 32.G1 70731 |BIB ABT PK 134 Case #8 2015 2016 2017 2018 2019 2020 2021 Capital Investment 250.800.000 oococeoNet instailed Capacity of New Piant (kW) 162.222 162.222 162 222 162,222 162 222 162,222 162 222 stereceeecerees*ESTIMATED BUSBAR COST OF NEW EKLUTNA PLANT ***°°"ots S reeEstimatedEd Estimated Energy Req Cost of New Cost of New from Eklutna Variable Required Projected Eklutna Power Eklutna PoworWanrtsdaPlantinterestDeprecationO&M fuel Cost Margins Cost (MWh)(SWh) 714 974 628 13.794 900 7:942.000 9.540.621 $0 787 451 2069100 84133173 $117.7 $0.11767 726,920 248 13,624 336 7 942,000 9.797 024 §2 152,355 2028650 85.444 366 $117.5 $0.11754 739 045.051 13 239.844 7.942.000 10,060.040 53 552.463 1985976 86.780 326 S74 $0.11742 751 351,727 12.939,698 7 942 000 10,329 836 54 988.668 1,940,955 88,141,157 $117.3 $0.14731 763 843,003 12 623,048 7 942 000 10.606 586 56 461 687 1893457 89526979 $117.2 $0.41724 776 521.648 12 288.982 7,$42 000 10,890 466 $7,973,060 1843,347 =90.937 855 $117.1 $0.19711 783.390,.473 11936 542 7942 000 11.181 657 8%523 154 1.790 481 92,373 831 $117.0 $0.11702 135 Case #9 $14.46/mWh Variable O&M (2015 Base Case +30%) 136 Case #9: Retail Rate Projection (kWh) Sales Revenue per kWh Sold (Annualized) Cost of Power Projection iSnwnt Source Chugach Electric Association,Inc, (Includes assigned hydra) New Eklutna Generating Plant Bradley Lake Hydro Ekluina Hydro Overall $14.46/mWh Variable O&M (2015 Base Case +30%) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 0.1490 01617 01669 01727 01789 0.1825 01854 01882 0.1906 01935 01956 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 009549 009836 0.10131 0.10435 011878 011867 011856 011846 0.11836 011828 011820 004492 004582 004674 004767 004862 004960 005059 0005%1 000609 000627 000646 000665 000685 000706 0.10991 0.11000 0.11010 0.11020 011031 011042 011053 137 income Statement -Distribution Case #9:$14.46/mWh Variable OSM (2015 Base Case +30%} 2094 2042 2013 2014 2018 2076 2017 Saies Revenve 10%?114 130,400 11S $45 345 128,570 768 132 GO2.171 136,724 622 140,959,515 Other Elecine Revenue 2 356 866 2 380 429 2 404235 2428 275 2.452.558 2 477 O84 2.501854 Op gR and P gt Capital 105,927.037 116,510,829 421,949,578 127,999,043 134,454,729 439,201,706 143,461,370 Power Production Expense .ie}Qo fe]a it}Q a Cost of Purchased Power 66 645 BOB 74 206 320 78 310 A13 83 870 039 87 $31 464 88 917 68S 90 330.338 Transmission Expense 33 460 34 159 34 801 35.497 3%207 37 294 38.432 Distribution Expense -Operation 3 080 316 3141 922 3204 761 3 268 856 3334 233 3.434 260 3.537 288 Distnoution Expense -Mamtenance 3.799 872 3875 869 3953 387 4032 455 4113 108 4.236 497 4363 592 Consumer Accounts Expense 2.164 232 3,227 $17 3 292.067 3.357.908 3.425 066 3.527 818 3633.653 Customer Service and informational Expense 170 $94 174 003 $77 483 181.033 164 653 190.193 195 899 Saies Expense 9 9 f)i)$i')te) Aaministratie and Genera!Expense 10,668 862 10 682.239 11.099 684 41 321,682 11 $46,319 11,894 769 12 251.612 Total Operation and Maintenance Expense 87,362,631 96,241,990 100,073,196 104.067,670 190,173,047 112,238,515 444,350,793 Deprecation and Amortization Expense 7 790.006 &383 $16 &930 360 9 $57 504 10 272 616 11076 962 11,907.$27 Taw Expense -Property and Gross Receip{s 347 658 360 793 386,506 392.303 398.187 404,160 410.223 Tax Expense -Other 694.743 708,638 722,814 737 267 782,032 774,573 797,810 interest on Long-Term Dept $923 305 6 237 639 6.617 482 7,199 626 7 781.202 8 698 837 9 338.459 interest Charged to Construction (Credit;(33 600)(33 660)134333)(35 020){38 720)(36 435){37 163) Interest Expense -Other 250,125 383.437 475 $22 109,875 56.556 146 B48 22?705 Otner Deductions . 188 364 192 131 195 974 199 B43 203 91 210 GOB 216 38 Total Cost of Electric Service 102,523,824 112,264,485 T7017 486 122,189,321 129,603,793 433,515.468 137,242,064 Patronage Capita!and Operating Margins 3,403,243 4,246,344 4,932,092 §,809.722 4,850,936 5,686,238 6,249,309 Non-Operating Margins -Interest 182 692 158 192 158 356 158 $273 186,694 158 B68 159 065AllowanceforFundsUsedOunngConstruction42.000 12 240 12.485 12734 12 989 13.245 13.614 Income (Loss)fom Equity Investments i o ft)oO i)i)iy Non Operating Margins -Other (6,828)it G33)(7 2443 (7 461)(7,685)(7916)18 4§3) Generation and Transmission Capital Creaits 349 982 300 090 250 000 200 000 2.199 100 2181 B15 2 238.164 Other Capital Credits and Fatronage Dividenas £75 006 592 250 €10 018 628 318 647 568 666 583 686 550 Extraordinary ttems 0 Qo f)it)ij c 0 Net Margins 4,486,059 5,985,707 TIER Target 1.76 185 1.90 195 2.00 200 2.00 Achieved TIER 176 1.85 1.90 4.95 2.00 2.00 2.00 Overati Rate Change Required -Current Year 8.57%347%399%414%2.46%4.93% Overall Rate Change Requrred -Cumulative (2011 Base Year)&87%V2 Dt VE 95%2c 08%2?babs 24 47% SRF Rate Change (Base Rates Only,No WPCRA)-Current Year 6 be.192%241%o 18%329%2 46%, SRF Rate Change (Base Rates Onty,No WPCRA)-Last Three Yoars faerie 14 0S Wot.Sain &baie 5 oth, Moditied Debt Service Coverage Ratio -Current Year the 1697 1427 T URS 1550 1578 1 6ao Modified Debt Service Coverage Ratio -Gest 2 of 3 Yeary +639 3.952 1982 1.780 1.733 Equity Ratio 415%417%41.2%412%40.4%39.9%39 8% 138 income Statement -Distribution Case #9:$14.48/mWh Vanable O&M (2015 Base Case +30%) 2018 2019 2020 2021 Sales Revenue 145 235,919 149,289,449 153,861 367 157,680 540 Other Elecinc Revenue 2526 873 2 S82 Va2 2 577 663 2.603 440 Op oR and P ge Capital 147,762,794 751,841,590 156,439,050 160,443,980 Power Production Expense :0 ie}0 [] Cost of Purchased Power 91 769 585 93 255 964 Ge 728.387 SE 248 138 Transmssion Expense 35 565 6G 752 S1974 43 233 Oistubution Expense -Operation 3.643 407 3752 705 3 865 290 3 3E1.249 Distrouton Expense -Maintenance 4494 469 4629 948 4768214 45911261 Consumer Accounis Expense 374?663 3 B54 942 2970.591 4 089.708 Customer Service and informational Expense 201776 207 679 214 064 220 486 Sales Expense [*)0 0 is} Admuustraive and General Expense 12,619,160 12.997 735 13-387 667 13,789,297 Total Operation and Maintenance Expense 116,510,654 118,718,865,120,976,187 123,283,372 Depreciation and Amortization Expense 32 700 918 13 505 &78 14 333 564 15 $37 263 Tax Expense |Propeny end Gross Recents 416 376 422 627 428.961 435 395 Tax Expense -Other 821 7ad 846,395 871 738 897,942 interestonLong:Term Debt 10.030 653 10 £75 896 11:396 6/9 14 864 2h4 interest Chatged to Construction iCreai){37 907)138 665)(39 438)(40 227) Interest Expense -Other 226,300 228,787 436,933 84 74 Other Deductions . 222 797 229 68)236 366 243 487 Totat Cost of Electric Senice 140,891,534 444,488,861 148,334,040 154,906.167 Patronage Capital and Operating Margins.6,871,258 7,352,730 "8,108,009 8.537.813 Non-Operating Margins -interest 159,226 8 819 10899 189.797 Aiiowance for Funds Used Ouring Constructian 13 788 14 060 34341 14 626 ingome (Loss)from Equity investments Oo i)c G Non Operating Margins -Other (8,398)16.650)(8,909)(8,176) Generation and Transmssion Capital Credds 2 287 663 2329 952 2?363.395 2 388 477 Other Capital Credis and Patronage Dwiwends TOT VWF 728 393 750 245 772 752 Extraordinary Items G 0 a o Net Margins 10,030,651 10,575,496 44,386 679 TIER Target 200 200 2.00 2:00 Achieved TIER 2.00 200 2.06 2.00 Overail Rate Change Required -Current Year 188%T61%197%139% Overall Rate Change Required -Cumulative (2011 Base Year}26 Ub oF OB 29 93%3B. SRF Rate Change (Base Rates Only.No WPCRA)-Current Year Voda,Pasty 1EGs, SRF Rate Change (Base Rates Only,No WPCRA;-Last Three Yea Rtv Dae eos G 80h. Modified Debt Service Coverage Ratio -Current Year TET get 4016 1 68 Moditied Debt Service Coverage Ratio -Best 2 of 3 Years 4.750 2020 41933 4933 Equity Ratio 399%39 9%40 5%40.9% 139 income Statement -G&T Case #9 $14.46/mWh Variable O&M (2015 Base Case +30%) Sales Revenue Other Electric Revenue Operating Revenus and Patronage Capital Power Production Expense Cos!of Purchased Power Transmission Expense Disinbubon Expense -Operation Distnbuton Expense -Maintenance Consumer Accounts Expense Customer Service and informational Expense Sales Expense Administrative and Genera!Expense Total Operation and Maintenance Expense Deprecaor.and Amonization Expense Tan Expense -Properly and Gross Receipts Tax Expense -Other interest on Long-Term Dett Interest Cnarged to Construction (Creat) Interest Expense -Other Other Deducpons Total Coat of Electne Service Patronage Capital and Operating Margins Non-Operating Margins -Interest Aliowance tor Funds Used Dunng Construction income (Loss!from Equity investments, Non Operating Margins .Otner Generaton ane Transmission Capital Credits Other Capital Credits and Patronage Dundends Extraordinary ttems Nel Margins Operating TIER Target Achieved Overall TIER Equity Ratio 20114 2012 2013 2014 2018 2016 2017 o 0 ¢fy 87531 464 66.997 655 90.330 338 ie]0 0 [e]0 [e]Oo o oO ry)0 37,531,464 88,997,685 90,330,338 t 0 °r)61,782,665 62,936.125 64 620.096¢0 ¢©2:443,659 2.492 $73 2.542 424 3 0 0 0 0 0 6 0 Q 0 0 9 0 0 c 3 ©0 Q Q r) c 0 is}0 Q fe]Le} Q 0 0 0 o ©Q 6 °8 0 0 ©7 6 0 0 9 0 6 6 "eo Q o 63,726,364 65,422,698 67,162,520 rs rs Q 7 $42 000 7 a2 000 7,942 600 0 Q 0 °©° 0 r)0 0 9 0 ie]0 t 13.794 00C 13624 336 13.239 841ie)ie}te}0 i ie} 0 i3]0 to)G o 6 0 ¢0 °0 . )r 0 85,467,964 6 880,034 38.344.361 ae ae rr ° 0 q 2,069,100 2,028,650 1,985,976 o )a.-i}153 164 252 186 Q r)0 6 0 ¢°9 °0 Q 0 0 Q ° o Go is}is)6 Q °r O°c ¢ny e 0 0 o 0 0 r)815 female OOO G00 C 0G 1th Hitt s vee 00 000 co 418 146 : 00%00%00%00%09%1.8%27% 140 income Statement -G&T Case #9.$14.46mWh Variable O&M (2015 Base Case ¢30%) 2018 2019 2020 2021 Saves Revenue +76S S65 $3 245 $64 $8 728 36?96 246.138OtherExecincRevenve5[*)i?)*} Operating Revenue and Patronage Capital 91,769,585 "93,235,564 94,728,387 96,248,138 Power Production Expense 66 355 659 68.131,920 69.956 017 71.827 192 Cost of Purchased Power 2593273 2645 138 2696 041 2.752.062 Transmission Expense o f°)o 0 Distibupon Expense -Operation i]9 i*)0 Distrroution Expense -Maintenance Go i G [*) Consumer Accounts Expense is)i)ie}iy Customer Semmes ano informational Expense i)0 is}o Sales Expense o it)ie i} Administrative and Genera!Expense 0 0 (e}i¢) Total Operation and Maintenance Expense 68,946,931 70,777,058 72,654,058 74,579,114 Depreaation and Amoruzaton Expense 7 982 000 T 442.000 7 9a2 000 7 942 060 Tax Expense -Property and Gross Receipts c Oo is]is) Tax Expense -Otner oO ti)(°)it) Interest on Long-Term Dem 32 939 696 32.623 O46 32 286 962 V1 G3 542 interest Charged to Construction (Crear)fe}id)fe)fo) Interest Expense -Other is]Qo i')ie] Other Deduchons G )i)is) Torat Cost of Electric Service 89,828 630 91 342,107 92,885.040 94 457,656 Patronage Capital and Operating Margins Z 940,955 "1,893,457 1 843,347 1,790,481 Non-Operating Margins-Interest 34E G48 520 O47 597 995 Aliowance tor Funas Used Dunng Constructon .o 0 Q income (Loss)trom Equity Investments 0 o a Non Operating Margins -Other fe)9 0 Ganeraton ana Transmission Capital Credits i]0 (+) Other Captai Credits ano Patronage Dwidencs 0 °Go Extraordinary ttems c [a]Le) Net Margins 2,287,603 2,363,395 Operating TIER Target sib 15 15 v15 Achieved Overall TIER .v4 139 20 Equtty Ratio 3.7%46%59%7.0% 41 c hined i Spap,ry Case #9 $14.46/:mWh Variable O2M (2015 Base Case +30%) Sates Revenue Otner Electric Revenue o a &and P.ge Capital Power Progucton Expense Cost of Purchased Power Transmission Expense Orstribubon Expense -Operahon Distribuvon Eapense -Maintenance Consumer Accounts Expense Customer Sernnce and Informabona!Expense Sales Expense Admunistratwe and General Expensa Total Operation and Maintenance Expense Deprecabon and Amortization Expense Tas Expense -Property and Gross Receipts Tax Expense -Otner interest on Long-Term Deb! interest Charged to Construction (Creait) Interest Expense -Other Other Deauctons Totat Cast ot Elecine Service Patronage Capital and Operating Margins Non-Operating Margins -Interest Atiowanoe tor Funds Used Ounng Construction Income tLoss)trom Equity Investments Non Operating Margins Otner Generavon and Transmssion Capital Credits Ome:Capita)Crearts and Patronage Dividends Extraordinary tlems. Net Margins Achieved Overall TIER Overall Rate Change Required -Current Year Overall Rate Change Required -Cumulative (2011 Base Year} SRF Rate Change (Base Rates Only,No WPCRA).Current Year SRF Rate Change (Base Rates Only,No WPCRA)-Last Three Years Equity Ratio 2011 2012 2043 2014 2018 2016 2017 NCBSTOI77 =-VM SCAG 119505345 «125570768 «152,002 171 136 724622 140 959.815 2 346.860 2,380,429 2 464 233 2426 275 2,452 558 2.477.084 2501,854 105,927,037 116.510.829 -«121.949.578 -«127,998.043 «134,484,729 «139,201,706 «143,461,970 i))C)0 61 262,665 62,930.125 64 620 066 66.445 308 14 506 220 eae ar3 £1.676.039 2 443.699 2.482.573 2 $42 424 23 450 44339 34 801 35 497 %6 207 37 294 38412 3 080,216 3141972 3708 761 3 266.856 3334 233 3.434.260 3537 268 3 799.872 3.675.869 3,953,387 4,932 455 4,113 104 4 236,497 4.363.592 3 164 232 3227 817 3 262.067 4357 908 3.425 066 3527 618 3633653 170 591 174 603 177,483 181.033 184653 190,193 195.896 0 0 0 0 0 °0 10 668 662 10 882 2:9 11 096 684 31321 682 11548 519 11 994.769 12 251612 87,362,631 96,243,990 100,073,196 104,067,670 86,367,947 88,743,529 91,182,976 7 790.060 8 263 516 8930 360 9.557 504 18214618 19 620 962 79 849 927347658380,783 386 505 392,303 398,187 404 160 410,223 666 743 08 638 722811 737 267 742012 77a $73 797 610 $923 308 6227 635 6617 452 7.159 828 21575 262 22:223.173 22.578 300 (33 0005 (33,680)134 333)(35,020)(35 720)(36.435)137 163) 266 123 163437 12 §2?108 875 58556 146 648 227 705 185 364 192 134 198 974 199 693 202 ag1 210 00a 216 368 102,823,824 492,264,485 «117,017,486 «©-«-122.188.321 -«127,534693 «131.486898 «138.226.0868 3,403,213 «4,246,3ad 4,832,092 5,809,722 6,920,036 7,714,688 8,235,285 152 692 "456 492 198356 188523 OGG =SCZ SS120001228032,405 12734 12 986 13.268 13.916 0 c 0 0 0 0 0 (8,828)17,033)(7 284)761)(7,685)(7,916)(8,153) 34s 98?300 000 250 000 200 000 a 0 ry 57 000 £92 20 610.018 628.318 647 168 666.583 686 S80 0 0 0 0 0 0 0 )«$301,993 §.955,707 $,803,837 7,781,202 8,698,637 9.338.459 176 165 +$c 195 q 13g a6) 8.57%347%3.91%414%2.46%193% BET #2 qs 98 96%20 08%22 SA%24.47% €ba ta78 Bary 014%325%7 48% Tes 14 80%12 21%sar 6 Bay £St% 41 5%417%412%412%22.9%22.8%23.5% 142 Cambined Income Statement Case #9:$14.46/mwWwh Vanable OSM (2015 Base Case +30%) Sates Revenue Othe:Electnc Revenue Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Transmission Expense Distnbution Expense -Operation Distnbution Expense -Mamtsnance Consumer Accounts Expense Customer Service and informatonai &spense Sales Expense Admunisiratve and General Expense Total Operation and Maintenance Expense Depreciation and Amoruzatior Expense Tax Expense -Property anc Gross Rece:pts Taa Expense -Other interest on Long-Term Debt lnterest Charged to Constructor (Cred-t) interes:Expense -Other Otner Deauctions Total Cost of Electric Service Patronage Capita!and Oparating Margins Non-Operating Margins -Interest Allowance for Funds Used Dunng Construction income (i.ass)from Equity Investments Non Operating Margins -Other Generabon ano Transmission Captat Credits Other Capital Crearts anc Patronage Dividends E-traoroinary Items Net Margins Achieved Overall TIER Overall Rate Change Required -Current Year Overall Rate Change Required -Cumulative (2011 Base Year) SRF Rate Change [Base Rates Only,No WPCRA)-Current Year SRF Rate Change {Base Rates Only.No WPCRA}-Last Three Yea Equity Ratio 2018 2019 2020 2001 145 235.916 145.269.4459 183 861,367 157,640,540 2526 B73 2552 142 2.577 663 2603 440 147,762.795 151841590 156,439.050 -160.443.980 66,393,656 68,131,920 69,956,017 TH 827,392 2563273 7 645 138 2 698 041 2 752 00239S6540752a1g7443233 3.643.407 3,782,709 3,865,290 3,981,249 44594 459 4629 334 4768214 4911201 3742 663 3.844 942 3970591 4.089 708 201776 207.829 214 064 220.486 0 0 6 6 12618 160 12.697 735 13.387 667 13 786 29793,688,001 96,260,360 «98,901,858 =107,614,349 26 642.978 21447 678 22,275,564 23,076,203 416 376 422 622 426 961 435 395 B21 744 846 396 871786 897 paz 22 970.380 23198 54a 23675 661 23,800 B26{37 907)138 665 (38 458)140 227) 226 300 228 787 136 933 Ba 741 222 707 229.461 236 366 243 457 138,950,579 142,595,403 146,487,693 -«-180.115,685 8612213 «9.246.487 9,951,357 10,328,294 S08 a7a 595 505 679 646 757 786 13784 34 060 tae 14 628 Q a o 0 (8 398)(6 659){8 909}(6 176) C a 9 9 FOV TF 728 353 756 245 772 782 0 3 o 0 10.030.654 10,575,496 11,386,679 11,864,284 184 145 148 150 188%1.61%197%1.39% wot io 6%253%31 32% Se,235%153s ere BREN »Bm 244%252%26 3%27.2% 143 Balance Sheet -Distribution Case #9°$14.40/mWh Variable O2M (2015 Base Case ¢30%) Utility Plant in Serica Constructon Work in Progress Tota!Utily Plant Less Accumulated Provision for Depreciation aro Amonizaton Net Utity Piant Other Property and investments Cash Snon Term Investments Onner Curent and Accrued Assets Current ana Accrued Assets Deterred Debits Tatal Assets Memberships Patronage Capilai -Beginning Current Year Capital Credit Retirements Current Ycar Net Margins Other Margins and Equites Total Margins ana Equines Gross Long-Term Debt Less.Portion Ove Within One Year Net Long.Tarm Debt Other Non-Current Liabanes Short-Temm Line of Creat Curent Parton Loag-Terr Debt Otner Currant and Accrued (iatutes Curent and Accrued Liabilines Deferred Credits Tota!Liabirtes and Equites 2015 2012 2013 2014 2015 2016 2017 312669601 330175801 B84.31S276 «=378358270 «408748008 =440044 408 472.283.420 6452 735 6581 769 6.712 404 6 847.673 €984 626 7,124 319 7 266.805 319122516 «336.761 $70 «=361.028 680 =»384 202643 AIS 728634 «=AAT 168726 ©479.550 625 (125831440)(133396670,(143 S89 956)(154456 G36,(166.220000)(178 863 260)(192 452.531) 195297076 793362900 «217 438724 «=730 706.006 «=249506634 768305466 -«-287 058.053 21-296 536 21 488 766 22 648 804 23.277 122 25 843.389 26 491 787 31216531 405.626 atiai2 426,168 434,692 443,356 452,253 463,298')0 a ry 2 ry 0 16324 134 38 690 616 19 068 429 aay 717 19 834 632 20,231 324 20,635.95! "28 733,754 "T9.108428 19490597 19.880 409 20 278,617 20 683 578 21,097 249 5.194 257 £257 342 5 362 489 5 469 739 5 579.133 5690 716 5 804,530 260475622 749 717,456 2A GAD EIA «=79333276 «=361 209.174 «=323179 S47 «=345 216 ad euszenzcz :peevseees saszersse eiseesese revtessrs 239,678 20d a68 249 367 254 yaa 259.451 264 620 269 912 $2 33 533 $6959 786 =100 281.788 =108 234677 118 84 167 14765$527 124,589 530 (B82 406}(959 392)(1,002.848}(1 052,347;(1 109 842)(1.764 833)(1 668 643)4 486,055 5301 993 5.955.707 6 601 37 7,7B3,202 8 698.837 9.338 459 3587 412 2 659.168 2732 144 3.806.991 3.883.131 3:960,793 4,040,009 99766773 «104 188 416 «=109216378 «=:1158045502 «421.798 089 128 814943 136 369.066 106,683 449 112.768,571 122,922,184 137,862.334 143.$66,301 194.678 431 168,613,652 (5 120 478)(4 228 6721 (4 383 B46)17 229 276}(7 668 410)(5 408 126)(6 $66 312) vO)162 971 WOE CAO ESS =11E 13833 «=175333058 «135 857.851 14927000 ©:160 053 40 1229022 vE3 605 1276675 1306 748 4330 333 1,396,940 1,364,079 6 157 dps 5020 Boa 4398 0c?2 34?24g $873 930 9106 201 $.052 007 $120 a7¢4226072 45,363 846 226 27€7 668,410 5 408,176 #560312163756461466374034956475+255 6Ud 46 S60 716 15 874939 16 189 369 25.623 628 Po Ste 165 3738303 4827 1S 25 103 O56 30 388 258 33 861 668 52.521 400 12.873 328 42079 865 13:341,421 15 608 229 De GAG 614 333276 ©301 209 174 1Sa7 5 216 404 144 Balance Sheet -Distribution Case #9.$14.46/mWh Vanable O&M (2015 Base Case +30%) 2018 2019 2020 2024 Uttidy Piant in Service $00 570 919 $33,506 94t 563 516 724 594 426 801 Construction Work on Progress 7412141 7 56C 364 TOTAL 52 7 865 823 Total Uthty Plant $07 $63 065 544 O67 325 $71 226 316 602 292 624 Less'Accumulated Prowsion for Decretiation and Amortization {206 946 760)(222 359 606)(236 717003;(755 991 509) Nal Utiity Plant 301 036 360 318 TG7 FAG 332 $11.313 346 301115 Other Property and Investments 346019 311 36 BES 256 39 782 896 42 744 124 Casn .470.524 479 935 469 53.499.324 Snon-Term investments Q i)o 0 Other Current and Accrued Assets 21 048 670 21 469 643 21 899 036 22:337,017 Current and Accrued Assets 21 $19 194 21 949 S76 22 388 $70 22 836 344 Oeterred Debits §.920€21 6 039 033 6 159.814 6 283.010 Total Assets 3G2 487 426 383 $65 587 460 842 552 418 164 591 Memberships 278345 260 617 266 433 292 162PatronageCapital-Beg:nning 132 089,446 445,108,910 168,562 772 °57,740,716 Current Year Capital Creda Retremenis 41980 867)i2 101 634,{2,228 742}(3 154,616) Current Year Net Margins 10.630 681 10 575 46 11 386 679 11 864 284 Other Margins and Equines 4,920,809 4,203,225 4 287,290 4,373,936 Total Margins and Equities 144 $05 030 153 066 814 162 314 433 VEINS 377 Gross Long-Term Dedl 377 025 600 Tel $60 USS 202 048 274 208 069 047 tess.Ponion Due Within One Year 44 207 458)(8 537 648)(§434,220:(iF 1:5 958) Net Long-Term Dett 172 818 442 184 042 409 192 614 055 196 958 109 Other Non Current Liabuties Tete?4839,595 1,408,756 1.498.452 Snort Term Line ot Cred G18 466 £erT ag 3309635 §328 O€7 Current Portion -Long.Term Debt 2 207,188 8537 646 9 434 250 T1110 GBA Other Current and Accrued Liabilities 16 S53 186 16,640 429 17 18O 268 iv 523 BoA Current and Actrued Labites Peet eet "SO ENS 367 30 004 ta?32 BE?948 Deferred Credis 13 680 543 14 58 COT 14 444 184 14729 Sod Total iatiihes and Loumes 2487426 SAREE CE?©AOD BAD S520 TA 164 581 Balance Sheet -G&T Case #9:$14.46/mWh Variable OSM (2015 Base Case +30%) 2011 2012 2013 2014 2018 2016 2017 Unity Piant in Service "9 7 o o 0 250 800,000 «280,800,000 250,800,000 Constnuction Work in Progress ¢iy 0 0 _o &0 Tota!Utility Plant [?)0 ij Q 250 800.009 250 800 000 250,600,000 Less Accumulated Provision for Depreciation and Amedizatice:9 c 9 a (?$42 000){15,684 000){23.826 000) Net Utday Prant 6 f)o 0 242 858 000 234 916.000 226 974 000 Other Property ang investments Le)be)ic]9 ie]ie]9 Cash te)i¢)0 9 $0 000 56,000 $0 000 Shon-Term investmenis Q a i¢]Pe)$108,222 10.059,296 14,782 423 Other Current anc Accrued Assets a i)[*)Le)a is)9 Curent and Accrued Assets i is](8)o 5.198.222 10 109.396 14 €32 423 Deferred Deb:ts ooooooTotal Assets °Q Memberships 0 ¢i)o 100 100 106 Patronage Capital -Beginning £fe)o c t 2119:160 4300 916 Current Yaar Capita Credit Resrements fe)is}o i}it)G t Current Year Net Margins i')G °a 2.718 100 27,187 855 2.238,164 Other Margins and Ecuities O G fs]G G G a Total Margins ano Equites iy oO o i)2514 205 4301015 6.§39 179 Gross Long Term Devt ie]o fo)o 245,897 022 240,724 384 235,267 244Less.Portion Due Wenn One Year .3 9 fe)is)(8.472 641)(5,457 437)(3 757 275) Ne!Long-Term Debt oO By a 9 246 724.381 255 267 244 229 509 965 Other Non-Curent Liabuties is)a [s)i it]®0 Short-Term Line of Credit o 0 Q 0 it)is) Current Portion -tong-Term Debt G i)Q 0 $172 681 $457 137 Othe:Current and Accrued Liabiites 6 ie)i)0 fs]6 Current and Accrued (iapdines is) . is)a [2 5172 684 $48?137 Deterred Creaits a v0 3 o G is)G -)er.241,806 423Tota!Liabilittes and Equities ie)-i)i)ie)248 016,222 snyesrtez sprrancst 146 Balance Sheet -G&T Case #9:$14 46mWh Variable O&M (2015 Base Ca. Uthty Pian!in Service Construction Work in Progress Tota!Uulty Piant Less Accumulated Provision for Depreciation and Amortization Net Unity Plant Otner Property ang Investments Casn Short-Term Investments. Other Current and Accrued Assets Current and Accrued Assets Deterred Demis Totai Assets Membershias Patronage Capital .Begunrung Current rear Capitat Creat Retrements Current Year Net Margins Other Margins and Equities Total Margins and Equites Gross Long-Term Debt Less Porton Due Winn One Year Net Long:Term Debt Otnet Non-Cutrent Liablities Short-Term Line of Creat Curent Portion -Long-Term Dept Other Current and Accrued Liabilities Current and Accrued Liabilites Deterred Creaits Total Liabilities and E quites 2018 2019 2020 2021 250,900,000 250,800,000 250,600,000 +=750,800 0000°°° 250800000 286.800.0000 =25.800000 =».280.B00 000 (31768600)(36710000)(47,652 000)188.594.000) 219 032 000 211990000 ©:203.148 006.«=:195 206 000 i)0 0 a 50.006 50000 56.000 50 000 19.254 74?23:452.369 27,349 768 30.919 809 c 0 °0 19 304 747 23 502 369 7 399 768 30,969 809 ©i)0 6 226 175,808 106 100 106 100 6526 07%&826 687 11156 234 13.549 629 0 o o fy 2 287,603 5 320 652 2 363 395 2,388,477 °Q 0 0 8 826 762 11156 334 13519 726 15 $08 206 229,509,965 223,.436035 217028039 «=210.287.6048(8 O73 930:16,407 996)(5,780 436)(7 132.266) 223436035 237628038 210267604 203435 38a 0 0 "0 G ')0 0 6073 $30 6497 996 6 760 46 1932 260 0 9 6 e 6073 850 €407,996 €760 436 7132 260 & 238 336 747 147 Combined Balance Sheet ; Case 89;$14.46/MWN Variable O6M (2015 Base Case +30%) 2011 2012 2013 2014 2015 2016 2017 Unity Plant in Service 312,069.801 -330.17960)454.378.2776 ©3578 35.270 ©659.544.0086 90.844.408 =723,083,820ConstructionWorkinProgress64527556581763671340468476736.984 626 7174316 7.286.805 Total Unlty Plant 31122516 «336761570 =361078680 «385 202 943 HE 528634 «=697 968.726 «©730 380.625 Less Accumulaled Provision for Deprec:avon and Amortization.(923 831 449)(133,398,670)(849589956)(184 406,936)(174162000)(194,747,260)=(216,278,531) Net Ubhty Plant TSS 261076 703362900 217438724 «=«230 706806.«=492366634 =503221466 «=14.072 083 Other Property ang Investments 71 296 536 21 9B 786 32 646 604 23.277 122 23,724 269 24 190.872 24 677 452 Cash 409 676 417 812 426 168 434.692 493,386 $02 253 511 296 Short-Term Investments 6 °0 6 5 108 222 10.059.396 14782 623 Other Current and Accruea Assets 16 304,134 18,690,616 19 064,429 16,445,797 19,834 632 20 231.324 20,635,981 Current and Accrued Assets ; 18 733 754 19 108 479 19,499 597 19 BBO 409 25 436 240 30.792 873 38 929.672 Deferred Detits 5 188 257 5 362 489 5.469 738 5.879 133 5.690.716 5.804 530 Total Assets a0 475,622 279,333,276 ©$47,108.296 -«-563.896.027 --580.483,748 2 :es se z:ss eetesesss pereeteae Memberships 259 675 244 468 249,357 254 344 259,531 264,720 276,012 Patronage Capitat -Beginning 92 33%$33 $5939 186 «100 701 TRB =108 234677 «110 GBA 167 117 H5S527 124 689 EAC Current Yeat Capita Credit Retrements (B52 406)(955.392){1002 818)(1052 347)(1 109 842){1 764 833)(1 868 843) Current Year Net Margins 4 486 059 §301 993 5 958 707 6801 a37 7 781 202 8.698 837 9.338 459 Other Margins and Equities 2 987,412 365,161 3732 344 3.806 991 3863 131 3,960,793 4 040,005 Tota:Margins ang Equites 99766273 104185416 «=105216 378 «=115045502 «121.79B 18G «=128 815.043 «136 389 168 Gross Long-Term Dept 406 883,449 412 268 971 122 $23 164 122 $62,334 389.463 323 396 402.511 403 B80 896 Less Portion iiue Witnin One Year (5 170 476){4.228 O72)(4,385 846)(7226276)(12,841,052)(10,86 263)(14.317,851) Net Long-Term Debt .VO 762971 «THB OAD BSF 138158336 «=175333088 «=376622271 «384,837.249 Other Non Current Labimes 1 270.022 1753603 +TB ETS 1 304 248 1330 333 1356 S40 1384679 Short-Term Line of Crean 6 157 464 §020 664 4 396 002 2 34z 249 5.873.930 9 108 291 9.052 007 Current Pomion Long-Term Deo!6126 4°76 8.228 072 4 383 846 7229276 12 841,052 10 865,263 14 397 994 Other Current and Accrued Liabites 14.376 bye 44,663,210 14,956,475 45 255,608 15,560,716 15,874,930 16,189,366 Current and Acctued Liabues 75633638 |23817 148 23035 323 24 B27 1279 24.275,598 35 B45.394 39 558 PE: Deferred Credits WRIT HOD 12 B73.338 13076 BOS 43341 401 13 6b"27% Tolat Liabiibes and Equies >296 586 483 7462o4Sa0614©«-79.333276 «=S47.106 796 «=-583,896.027 «580 483 746 148 Combined Balance Sheet Case #9:$14.40/mwh Variable O&M (2075 Base Case ¢30%) Utuirtly Piant m Service Construction Work in Progress Total Unity Piant Less:Accumulated Provision for Depreaation and Amortization Net Utdty Plant Cther Property and Investments Casn Short-Term Invesiments Other Current ang Accrued Assets Current and Accrued Assats Deferred Detits Total Assets Memberstups Patronage Capital -Beginning Current Yeat Capital Creat Reurements Current Year Nel Margins Other Margins anc Equipes Total Margins and Equitres Gross Long-Tenn Debt Less'Porton Ove Within One Year Net Long-Term Debt nher Non-Current Liabstes, Short-Term Line of Credit Current Porton -Long-Term Dent Otner Curtenl and Accrued Liabditres Current ang Accrued Liabilities bDeterres Credits. Tota!Liabaines and Equities 2018 2019 2020 2021 751,570919 764 506G61 Bla 316724 885.226.80174121447,560 364 7714 $92 7.865.823 756.783 060 791667305 ©BPz.0R831 ©©-«8SI.092 B24 {238714 760)(267.069.6061 (286 369.003)(311,585,508) 570068300 «©$8797.59 «=«538659313 Ba 507.18 25 184.626 26,793,022 26,263,267 26,836,016 520 524 526 935 539,534 54g 326 19 254.74?23,452 :369 27 349.768 30.916.809 21 348 670 21 469 643 21.899 036 22.337.017 40 823.944 45 451 a7 40 768 338 53 806 150 5.920.621 6,039,033 6,159,814 6,283 016 591 907 491 626,43?794607,061,722 617,870 731 278444 280,917 286,533 292 262132.056 146 140106950 =148 982772 «187.740 710(1 986 687)(2.104 634}(2 228,742)(3 154.816) 40,030,651 10,575 496 14,386,678 11,864,284 4120 809 4203 225 4 287 290 4373036 144565130 53066914 362314583 171.115.4877 406,535,565 416 016,090 419076318 418,336,705(19281968)=14.988642)116-194656)(18.243 248) 396.254¢77 4G107044B «=402 881.663 400 093 459 tates 1.439 96 1 463,796 1.498,172 9155 486 §477 301 3 389 635 $228 067 30,281 068 14 945 642 16 554 656 1B 243 24646413156166434201718028617523694 35 945 730 30 286 362 36 768 879 40 995 206 14,481 168 14,728,984 149 617 870 731 628 432 294 Case #9 2015 2016 2017 2018 2019 2020 2021 Capital investment 250 800 000 oooaoaag0secre erseces**ESTIMATED BUSBAR COST OF NEW EKLUTNA PLANT *°**"er reresNetInstalledbstmatedEted E ted Capacertty of Energy Reqd Cost of New Cost of New New Plant from Eklutna Variable Required Projected Exlutna Power Eklutna Powor (kW)Wartsida Plant {nierest Depreciation O&M Fuel Cost Margins Cost {S/MWh)(SWh) 162.222 414974 628 13 794 990 7 942 000 10 335 673 50.787 451 2 069 100 84.928.225 $118.8 $0.11878 162,222 726 920,248 13,524 336 7-942 000 10.613.443 9 £2.152.355 2028650 86.260,785 $118.7 $0.11867 162.222 739.045.0541 13.239 841 7 942.006 10.898 376 53,552 463 1985976 87.618.656 $148.6 $0.14856 162 222 751 351.727 12.939 658 7942 000 11,190 656 54,988 668 1940955 89,001,977 $118.5 $0.11846 162 222 763.643.003 12 623.048 7 942.000 11490465 56 461.887 1893 457 =90.410.B61 $118.4 $0.11836 162,222 776,521 648 12,288 982 7,942 000 11,798,005 57,973,060 1.843.347 91 845.394 $118.3 $0.11828 162.222 789.390 473 14936 542 7 942 000 12.113 461 59.523 1514 1790 481 93,305,636 $118.2 $0.11820 150 Case #10 $15.57/mWh Variable O&M (2015 Base Case +40%) 151 Case #10:$15.57/mWh Variable O&M (2015 Base Case +40%) Retail Rate Projection ihn} 2014 2012 2013 2014 2015 2016 2017 2018 2043 2020 2021 Sales Revenue per kWh Sold (Annualized)0.1490 01617 0.1669 0.1727 01799 0.1836 0.1865 0.1893 01917 0 1947 0 1968 Cost of Power Projection (Sinn 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source. Chugach Electric Association.Inc. (Includes assigned hydro)009549 0.09836 010731 0.10435 New Eklutna Generating Piant 0.11990 0.11979 011969 6.11960 011952 0.11945 0.11938 Bradley Lake Hydro 004492 004582 004674 004767 004862 004960 005059 Eklutna Hydro 000591 000608 000627 000646 OO00665 000685 000706 Overalt 0.11091)0.91101 G.17112 0.11123 C11135 011147 0.11160 152 income Statement -Distribution Case 810:$15 S7/mWh Variable O&M (2015 Base Case +40%) Saies Revenue Otner Electnc Revenue Operating Revenue and Patronage Capital Power Production Expense Cast of Purchased Power Transmission Expense Distrbutron Expense -Ope-ation Distnbution Expense -Maintenance Consumer Accounts Expense Customer Service and Informational Expense Sales Expense Agmunstralive and General Expense Total Operation and Maintenance Expense Depreciation and Amorizanor Expense Tax Expense -Property and Gross Receipts Tax Expense -Other Interest on Long-Tent.Debt Interest Charged to Construction (Crecti Iniurest Expense -Other Other Deductions Total Cost of Electric Service Patronage Capital and Operating Margins Non-Operating Margms -Interest Alowance tor Funds Used Ounng Construction income (Loss)trom Equtty investments. Non Operating Margins -Other Generation and Transmssion Capital Credits Other Capital Creatts and Patronage Dividenas E vtraordinary items Not Margins TIER Target Achieved TIER Overalt Rate Change Required -Curront Yoar Overall Rate Change Required -Curnulative (2011 Base Year) SRF Rate Change (Baso Rates Only.No WPCRA)-Current Year SRF Rate Change (Base Rates Only,No WPCRA)-Last Three Years Modified Debt Service Coverage Ratio -Current Year Modified Oclt Service Coverage Ratio -Best 2 of 3 Years Equity Ratio 2011 2012 2013 2014 2015 2016 2017 TORSO 7?114 130,400 ne 545 Bah 125.570 768 132,797,223 137 S41 O41 141,797 652 2.356 860 2 380.429 2 404 233 2 428 275 2.452 558 2477 084 2 501.854 905,927,037 -116.510,.829 -«424,949.578 -«-127.999.043 -«15,249,781 -«-140.018.125 --'144.299,706 0 )°0 0 °r) 66 445 408 74 SOE 220 76316843 81 870 039 BE 326 516 85 734 103 G1 168 674 33 450 344119 34 601 35 497 3%207 37 24 38 412 3.080 316 3148 922 3.206 761 3 268 856 2334 233 3,434,260 3,537 288 3.799 B72 2 67S 669 3953 3a?4032 455 4113 106 4.236 497 4363 592 3 164 232 3227517 2292 067 3357 908 3.425 066 3.527 818 3633 653 170 59%174.903 477 483 181 033 184.653 190.193 195 899 0 6 0 0 ry 0 10 882 239 11 09 884 11 324 B82 11 $48 319 11 894 769 12.255 61296,241,990 100,073.196 104,067,670 -110.968,099 «113,054,934 --118,189.13077900062383516693036095575083027260814,078 962 13,907 927 347 658 380 753 386 505 392 303 398 187 404.160 410.223 694,743 708 63 727,811 737 267 752.012 774573 797 810 §923 308 €237 639 €617 452 7 15%828 7781 202 8.698 837 9338 455 (33 0001 133 660)134 343)(35 020)(38 720){36 435)(37 463) 259,123 153 437 125 527 109.875 $8.55€146,848 227,705 188 364 192131 495 974 199 893 203 651 210.008 216 308 102,823,824 ©112,264.485 «117,017,486 «122,189,321 «130,398.85 «=134.995887 «138.080 3983.403.213 4,246,344 4.932.092 «$809,722 4.350.936 5.686.238 6,249,309 152 697 188,192 158.396 158,523 158 654 156 868 159,04512OG1Z24012485127341296913-249 13514 Q 0 o 0 6 °0 (6.828)(7,033){7 244)(7461)(7 685)(7,916)(8.753) 349 942 300 000 280 000 200 000 2119 100 2181 815 2238 '64575000592250610018628318647168666583686$80000o00 "4,486,053 9,338.459 176 176 415% 153 5,955,707 yupeccors Income S -Distrib Case #10,$15.57/mWh Variable OSM (2015 Base Case ¢40%) Sates Revanue Other Etectric Revenue Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Transmission Expense Cisinbuvon Expense -Oparaton Orstnbution Expense -Maintenance Consumer Accounts Expense Customer Sennce and Informanona'Expense Sales Expense Aaminustrative and Generai Expense Total Operation and Maintenance Expense Depreciation and Amontization Expense Tax Expense -Pioperty and Gross Receipts Tax Expense -Other Interesi on Long-Term Debt Interest Charged to Construction (Credit) interest Expense -Other Other Deductons Total Cost of Electric Service Patronage Capital and Operating Margins * Non-Operating Margins -interest Atiowance for Funds Used During Construction income (Loss)from Equity Investments Nor Operating Margins .Other Generation and fransmission Capital Credits Other Captal Credits and Patronage Divigends Extraordinary Hems Net Margins TIER Target Achieved TIER Overall Rate Change Required -Current Year Overall Rate Change Required -Cumulative (2011 Gase Year) SRF Rate Change (Base Rates Only,No WPCRA)-Current Year SRF Rate Change (Base Rates Onty.No WPCRA)Last Three Yoa Moditied Debt Service Coverage Ratio -Current Yoar Mouifred Debt Service Coverage Ratio .Best 2 of 3 Years Equity Ratio 2018 2019 2020 2024 146 096.738 156.173 331 154 768 925 158 772 345 2 $26 873 252,142 2577 663 2 603.440 448.623.611 152,725,473 «157,346,588 161,375,784 o 0 0 0 92 €30 404 94 119 446 9S 635 926 G7 179 942 39 S65 40 752 41974 43,233 3.643 4607 3,752 705 3,865 290 3.981.249 4454 499 4629 334 4768 714 4911 261 3742 6€3 3854 942 2970591 4.089.708 201 776 207.825 214,064 220,486 a o 9 0 12619 160 32.967 735 13 387 667 13 789 297 417,371,473 419,602,747 421,883,726 124,215,077 12 700 916 13 505 878 34 333 564 15 137 203 416.376 422 622 428 961 435.396 821 748 846 396 &71 788 10030 884 1f 575 496 11 386.679 (37 G07)(38 665)139 438) 226 300 228 787 136 933 222 797 229 484 443,752,383 148.372.7463 6.671.258 7,352,730 15%226 189.410 189.794 13 784 14.060 14.626 u 0 Oo (8 3%8)(8 650)(8 90%)(9.176) 7 2329 552 2 362 395 2388 477 TOR VW?728 393 750 2465 772 752r)0 0 Q 10,030,651 10,575,496 154 Income Statement -G&T Case #10°$15 S7#mWh Vastable OSM (20195 Base Case +40%) 2011 2012 2013 2044 2018 2016 2017 Sales Revenue is}G 0 ie}6B 326 516 89 734 103 91 168 674OtnerEiectreRevenue°G 0 0 o is) 3 ing Ri and P;ge Capital 9 -i)-0 er.)326.516 7:89,734,103 Power Production Expense °CG [e}is)62677 F1F 63 746 544 Cost of Purchased Power 0 Q 0 te)2 443 699 2.492573 Transmission Expense G 6 0 it]i}eC Orstnbution Expense .Operation [e}fe}is}0 ie)c Distnbution Expense -Maintenance Ct 9 Q id G 0 Consumer Accounts Expense [*)[s}[P)6 ty t) Customer Sernce and Informational Eapense c °is)ie)G CG Sales Expense (9)S 0 0 Q ° Admmnistratve and Genera!Expense ie]°ie}i?)0 0 Total Operation and Maintenance Expense a Qo (')6 64,521.416 66,239,117 Depreciaven and Amortization Expense ia 3 0 0 ?$42 000 7 942 000 Tax Expense -Property and Gross Receipts ig i)G fe)ie}0 Tax Expense -Other 6 Q oO G G 0 Interest on Long-Term Debt ©i]id Qo 13794 000 13.524 336 Interest Charged to Construction (Credit)(d o 0 e ie)o interest Expense -Other id o e ie)Q PP) Other Deducbons 0 i)%a 0 o Total Cost of Electne Service "oe a)o "9 26,267,416 87,705 463 Patronage Capital and Operating Margins 7 a)_rr eo -0 2,069,100 2,028,650 Non-Operating Margins -interest rr 0 is)(s)153,164 Aliowance for Funds Used Dunng Construction 0 ic)Q G te) Income (Lass;from Equity Invesuments ¢[e)fel (e)0 Non Operatng Margins -Other te)ie)oO [e}i Generation and Transmission Capita!Creaits c o a fe)° Other Capital Creais and Patronage Dividends o A)0 o i') E xraordinary Items 0 QO o i)o Net Margins G 0 Q 9 5 Operating TIER Target 600 ous £0¢00 115 VaAE 115 Achieved Overall TIER COG u oe oO coo 148 116 vie Equity Ratio 0.0%00%00%oo%09%18%27% 155 income Statement -G&T Case #10:$15 57/mWh Variable O&M (2015 Base Case +40%) 2018 2019 2020 2021 Sales Revenue G2 B30 404 Set 13%446 95 635 026 9?179 G42 Omer Electric Revenue is)o Ls)° Operating Revenue and Patronage Capital 92,630,404 94,119,446 95,635,926 97,178,942 Power Production Expense 67 214 478 69 OT8 B02 70 863 556 72 758.947 Cost of Purchased Power ?593,273 2,645,138 2 698 C41 2,752,002 Transmission Expense iv)oO is)Oo Disindution Expense -Operation G i)0 i} Disinoution Expense -Maintenance G o ie]° Consumer Accounts Expense :DP)Q is)0 Customer Senace and Informationa!Eapense ©Oo 0 i Sates Expense ts)is](]9 Administratve and General Expense 6 Q i)9 Total Operation and Maintenance Expense 69,867,751 71,660,941 73,561,597 75,810,919 Depreciation and Amortization Expense 7?942 000 7 9482 000 7 942 000 7 942 GOO Tax Expense -Property and Gross Receipts 6 0 0 fax Expense -Other is}6 is] Intereston Long-Term Deb!12 935 648 32 288.982 41 936 $42 Interest Charged to Construction (Credit)ie)ie}Q Interest Expense -Otner 0 ie)is) Otmer Deductions iG te)is) Totsi Cost of Electne Service "90,689,450 Patronage Capital and Operating Margins 1,940,955 Non-Operating Margins -Interest 336,648AllowanceforFundsUsedOuringConstruction9 a Incame (Loss:Irom Equity Investments i}Cc Non Operaung Margins -Other ta)0 Generabon and Transmssion Capital Credits te]a Other Capita;Creaits and Patronage Dividends ie}9 Extracrainary lems G Net Margins 2,329,582 Operating TIER Target wis ar)19S 115 Achieved Overali HER 148 116 119 120 Equity Ratio 37%48%59%70% 156 Combined income Stat t Case #10:$15 57/mWh Vanable O&M (2015 Base Case +40%) Sales Revenue Other Evectric Revenue Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Fansmussian Expense Dustribupon Expense -Operation Oistribupon Expense -Mamntenance Consumer Accounts Expense Customer Semmoe and informatona!Expense Sales Expense Agminstrative and Genera!Expense Totai Operation and Maintenance Expense Depreciation and Amorizaton Expense Tax Expense -Property and Gross Receipts Tax Expense -Other Interest on Long-Term Debt Interest Cnarged te Construction (Credit) Interest Expense -Other Otner Deductions Total Cost of Electnc Service Patronage Capital and Operating Margins Non-Operating Margins -Inierest Allowance far Funds Used Dunng Construction income (Loss:from Equtly Investments Non Operating Margins -Other Generabeon anc Transmssion Capita!Credits Other Capita!Credits ang Patronage Dividends Extraorcinary ems Net Margins Achieved Overall TIER Overall Rate Change Roquired -Current Year Overalt Rate Change Required -Cumutative (2011 Base Year} SRF Rate Change (Base Rates Only,No WPCRA)-Current Year SRF Rate Change (Base Rates Only,No WPCRA)-Last Three Years Equity Ratio 2011 2012 2013 2014 2015 2016 2017 103S70,177 134130400 «198 545348 «=105570 78R «©1297 223.137Bat04s 141 797 8522.356 860 2 380,429 2 404.233 2.428.275 2452 556 2.477 084 2,501 65a $05,927,037 -146.10.828 =-«121,949.578 «127,999,043 135.249,781 -440.018,125 144,299,706 0 °0 0 62077 797 63 746 544 65 458.433 66 445 308 74 906 320 76,310,883 £1,870 039 2.443.699 2.492 573 2.842.424 33 450 34419 34801 35 487 36 207 37.284 3eai2 3080 316 3 141.929 5 204 761 3 288 856 3334 233 3.434.260 3537286 3,799 B72 3.875.868 2,953,387 4,032.485 4.193 104 4.236 497 4563 592 3 164 232 3227 $17 3292 067 3.357 908 3425 066 3527 818 3623683 170 591 174 003 177 483 181.033 184 653 190.193 195 896 e 0 9 0 0 0 o 10 668 86?10 882 239 11,09 884 11.321 882 11 548.315 11:894.769 12 251612 87,362,631 96,241,990 790,073,196 104,067,670 87,162,999 89,559,947 92,029,313 8 383.416 8 430.360 $557 504 38.214 616 19.020 962 19 849 927 380,793 386,505 392,303 398 187 404.160 410.223 708.638 722.811 737 267 752 O12 774.573 797 810 £973 305 6737 639 6.617 452 7.159 828 21 $75,202 22.223173 22 578 300133,000)(33.666)(34 393)(35.020)(38 720)(36.435)(37 16) 280123 153,437 125 527 409 678 58.556 146.848 227,705 166 364 197 131 158 974 199 893 203 894 210 008 216 308 102,523,624 $12,264,485 117,017,486 ©«-122.180,327 «128329.745 «132.303.0368 -«136.064,022 3.403,213 4.245,344 4,932,092 5.809.722 6.920.036 7,714,888 8,235,285 152 692 186 192 156 356 1868 $23 208 69a 312,032 311,233 42.000 12 240 12 685 12.734 12.985 13.249 13.546 0 0 o 0 0 0 0 (6 828)(7,033)(7248)(7,461)(7.685)(7,916)(8 183) 355 962 300 000 250 000 200,000 0 ©° 575 000 592 250 610018 528.318 627 168 666 583 686 SED °0 0 0 0 G o 4.486.059 -«§,301.993 5.955.707 6.801.837 7.781.202 16 +s 192 155 13 13s tas 8.57%347%391%4.86%247%194% ably 12 04%4598"Do at 2327%PB 2I% 6 Bb:1 4O%oath 0 14,2 2G%cab 17 28%1s Ds tits aan 5 Bat 59% 415%417%At 2%412%22.3%22.6%23.5% 157 Combined Income Stat t Case #10:$15.57/"mWh Vanabie OSM (2015 Base Case +40%} Saies Revenue Other Electnc Revenue Operating Revenue and Patronage Capral Power Production Expense Cost of Purcnased Power Transmission Expense Cistnbution Expense -Operaton Distnbution Expense -Maintenance Consumer Accounts Expense Customer Sernnce ang informational Expense Sales Expense Acministrative and Generai Expense Total Operation and Maintenance Expense Depreciation and Amoruzation Expense Tax Expense -Property and Gross Receipts Tax Expense -Other Interest on Long-Term Debt Interest Charged to Construction (Credti Interest Expense -Other Other Deductions Total Coat of Electric Service Patronage Capital and Operating Margins Non-Operating Margins -Interest Allowance for Funds Used During Constructon incame (Loss;trom Equity Invesimerts Non Gperating Margins -Cther Generavon and Transmssion Catnlal Credits Otner Capstai Creats and Patronage Dividends Extraorainary Nems Net Margins Achieved Overall TIER Overall Rate Change Required -Current Year Overall Rate Change Required -Cumulative (2011 Base Year) SRF Rate Change (Base Rates Only,No WPCRA)-Current Year SRF Rate Change (Base Rates Only,No WPCRA}-Last Three Yea Equity Ratio 158 11.386,67 26 3% 208 2020 2021 146 066 738 154768025 158 772.345 2526 673 7577663 2 603 440 148,623,611 ©182,725.473 157,346,588 161,375,784 87,214,478 69 01 802 76 863,556 72 758.917 2$93 273 2 esbt38 2698 041 2.752.002 39565 40 782 41974 43233 3,643,407 3752709 2.865 260 3981 249 4 404.456 4629334 4768 214 4941 261 3742 63 3.854 GA?3:970.591 4069 708 201,776 207 B28 214.064 220 486 )')°Q 12.619,160 12 997 73E 13 387 6€7 43 789 267 "94,548,820 97,144,242 99,609,397 102,546,153 20,642 918 21.44?676 22,275,568 73 079 203 415 276 422 622 428 961 435.395 821 74a 846 396 871 788 B97 N62 22 970.350 23.198 $44 23.675 561 22 900 826 (37 807)(36,665)(39,438)(40 227) 22h 30¢278 767 136 933 bazar 222797 225 464 139,814,398 ©143.479.286 =-147,395.232 "9.812.213 9.246 187 9.951.357 10,328,294 5058/4 =S«GH OS 679 646 747 786 T3784 14 060 14.441 34628 o °©Q (8,598){8,650}(6 909)o&176) 0 0 'a 0 ror 1s?7B 395 750 245 772782 °0 0 0 10.030,65 Balance Sheet-DistributionCase810:$15 S7/mWh Variable O&M (2015 Base Case *40%) Utility Plant in Service Canstruchon Work in Progress Total Utdhty Plant Less'Accumulate Provision for Depreciahon and Amarmizator. Net Utity Piant Other Propeny and invesimen:s Cash Shon-Term investments Other Current ang Accrued Assets Current and Accruec Assets Detereo Dedts Total Assets Mamberships Patronage Capital -Beginning Curent Year Capita:Cred Retwements Current Year Net Margins Other Macgins and Equities Total Margins and Equittes Gross Long:Term Debt Less.Potion Due Within One Year Net Long-Term Dent Other Noo-Current Liaburties Shon Term Line of Creat Current Portion -Long:Term Debt Otner Current and Accrued Liatsitns Current and Acctued Liabilities Deferred Credits Tota!Liabiihes and Equites 2011 202 2013 2014 2015 2016 2017 312669601 «3301796801 354355276 «378358270 «08 744.008 «=4a OA AB =«4.72:283 B2064527:8 6 $B 769 6.7°3 40a 6 847.673 6 984 626 7124 319 7.266 805399122536336761570«361028680 ©385202843 «418726634 «447 168728 ©«479 550625 i423 831 440)4133 396 670)1143 589 556;(154 496 936)(166 220 000)(178 863 260)(192 a$2 $31) WE291 076 203.362900 217 438174 «=230706006 ©249508634 «=768 305406 «=:287 G98 093 23-296 £36 21 968 756 22 648 664 23.277 122 24 642 369 28,491 787 31.26 5321 409,62¢417,812 426,168 434,692 443,386 452,253 461 208 0 0 0 0 0 °©1B 426 154 48 640 616 19 064 424 19 44 717 19 834 632 20.231.324 20 638 951 18 733,758 99 108.429 19.490.597 19,880,409 20.278 017 20 682.578 71097 249 5 166.257 $257 442 5 62 485 5 489 73%5579133 5 690 71€5 804 536 740.475 622 264 S40 G14 323.171 5470 348.216 404361209174 239675 244 468 244 367 254 384 259.439 264 620 269.912 97 336534 $5955 166 100 261 786 «=105 23.677 10 GBA TE?«=117685827 124,889 530 (882 406)i959 392)(1 002 818)(1 O82 347)(1 109 642)(1 764.833}(1 868 643)4 486 055 §301 993 §955 707 6 801 837 7781202 8696 837 $338 459 2987 44%3,659 161 3.752,348 3,606 $91 3883,134 3,986 793 4,046,009 Sy 766274 «=TOSSES S16 =309216 378 =115045502 127798088 «=128814 943336 369 068 1OEBE3 445 172.268 9T1 122,522,184 $37,562,334 143.866.501 -«-184,678.131 168.6 3.652(3 120 478)(4 228 G72)14 383 646)1?229 276)(7 668 410)(5-408 126)(8 580 312)899 118138338 175 333 088 135897 691 «=349.2700058 «=:166.082 440 4228627 4 253 £03 1278675 1 304 248 +330 333 1396 940 1.364079 6 137 464 5 026 864 4595 002 2 342 249 5873930 §108 20%9.062 007 6120 ae 4228072 4.384 B€7 229.276 7668.20 5 408 126 £560 31214.375 666 14662 210 14 996 478 15 255 604 45.560 716 15 871 930 +6 169 369 26633 538 D3 G2 146 23 736 923 24 B27 129 26 103 056 30 388 258 33 601 668 12.823 338 37075 608 43 3qtagt 13608 225 27G 333 276 Sav 348 226 ace 159 304 205 174 Fogtat Balance Sheet -Distribution Case #10.$95 S7/mwWh Variable O2M (2015 Base Case +40%) Ubthty Plant in Senice Construction Wort in Progress Total Utity Plant Less'Accumulated Provision tor Deprenatian and Amonization Net Utinty Plant Other Property and Invesiments. Cash Short-Term investments Otner Currant ano Accrued Assets Current and Accrued Assets Deferred Debits Tota!Assets Memberships Patronage Capstal -Beginning Currant Year Captai Credit Retirements Current Year Net Margins Other Margins and Equibes Total Margins and Equikes Cross Long-Term Debt Less Porton Due Within One Year Net Long-Term Dept Other Non-Current Liabines, Short:Term Line of Creat Current Porton-Long:Term Debt Other Current ang Accrued Liadiites Curent ang Accrued trabiites Deferred Credits Tota!Liabitthes and Fquites 2048 2019 2020 2024 500 570.519 533 506 941 563 516 724 594 426 60} 7412 143 7 560 384 7347 562 7 865 823 507,563,060 541,067,325 571,228,316 «602 292.674 1205 $86 760)(222 359696)(238.717.0003)(285 981 503) 301 636 300 356 707 745 332 614.313 346 304 115 34611 311 36 869 256 39 782 696 82 744 124 470 5274 479,935 489 536 495,324 0 0 9 0 23 :048.670 21 469 643 21.899 036 22337 017 21519 194 27 949,578 22,388,570 22 836.341 §$20 621 6.159 414 6 263 010 418 164 594 278.3%280 817 286,433 792 162 132 O59 146 140 108 910 148 582 772 187 740 710(1 $80 887)(2.101 634)(2 228 742)(3.184 814) 10,030,651 10,578 498 11,386 679 11 864 264 4-120 809 4203 228 4 287 296 4323 036 $44 505 030 13 066 814 162 314 433 173135377 177 028 600 192 $60.055 202248279 =708 284,097(4 207 188)(8 537 646)(9 434.220)(11.110 988) 3727 Bie4a2 164042409 197614089 196 955 109 Tay 76s 1,439 956 1.468 756 1458 172 Bart 301 3 Sb$,538 $228 067BS37646$434 220 11140 966 16 B43.420 1?180 288 17 S23 Bd 39 B58 367 "Se O08 143 33 862 948 43 i 1d 156 GOS 4442413 163 14 729 GRE he?487 S26 160 ANB 164 SG4 Balance Sheet -G&T : Case #10:$15.57¢-mWh Variable O&M (2015 Base Case +40%) Unity Plant in Service Consinacton Vvork in Progress Total Utity Plant Less:Accumulated Provsion for Depreciation and Amortization Net Uulty Plant Other Property and Investments Casn Short-Term investmems Otner Current and Accrued Assets Current and Accrued Assets Deferred Debits Total Assets Memberships Patronage Capital -Beginning Current Year Capital Crean Retirements Curent Year Nat Margms Other Margins and Equines Tolai Margins anc Equites Gross Long-Term Debt Less Porbon Due Within One Year Net Long Term Debt Other Non-Curren!Liabuittes Short-Term Line of Crean Current Porvon -Long-Term Debt Other Curent and Accrued Liabdites Current and Accrued Liatiltes Geterred Credits Total i-abeites anc Equibes 2011 2012 2013 2014 2095 2016 2017 0 F)i)©250,800,000 250.600.000.250.800 006 °"9 9 0 0 0 5 rr 0 a "O --250.800.000 -«-250.800000 «280 800.000 9 0 (7,842 060)(15 884.000)-(23 826,000; 3 ry 0 242858000 234816000 226974 000 °0 0 0 0 0 0 0 0 0 6 50 000 50 000 50.000 o 9 6 c 5 108.222 10,059 396 14782 423 Q o 9 0 0 0 0 ry 0 0 0 5 188 222 10 109 396 14 632 423 0 9 D 0 0 °245 025 396 0 ©0 0 100 100 100 c &C 0 6 2149 100 4300 91890cr))0 © 0 7 e 8 2.119 100 2181815 2236 16400°°°°0 ry 0 G 0 2.219 200 4301 015 6539779 °a a 0 =.245.897022 240 T2A3H1 «235.267 Dad 6 0 Q 0 (5.272 641)(5 457,137)(5,757 279) 6 0 0 C@ «240724361 «=.235267244 =.229.309 965 Q 0 6 ©3 °6 0 0 0 3 0 0 9 ¢0 °°5172 641 5457 437 §757 27% C Q 0 ©0 °c .6 a)0 G $172 641 §687 137 5787 275 t oc is]L3)€ "G ry 245 625 396 161 Balance Sheet -G&T Case 810°$15 S74mWh Variable O&M (2015 Base Case +40%) Untity Plant in Sennice Constructon Wark in Progress Tatai Utility Plant Less'Accumulated Provision tor Depreciation and Amarization Net Ubnty Piant Other Propeny and investments Cash Short-Term investments Othe:Current and Accrued Assets Current and Accrued Assets Deferred Debits Total Assets Memberships Patronage Capital Beginning Current Year Capial Cred Retirements Current Year Net Macgins Other Margms ang Equies Total Margms and Equites Gross Long-Term Debt Less'Portion Due Within One Year Net Long-Term Dest Otner Non-Current Liabities Shon Terr Line of Creast Current Pocvon Long Term Debt Otner Current and Accrued Liabutes Current ang Accrued (iatoirbes Deferred Credits Total Liateites ang Equites, 2048 2019 2020 2021 250800000 «2750 8C0000 «=250800000 =250 600 000 G 0 6 ° 250800600 «SU 80D 006 «=FSC BOG OGD ©250 890 000 131 7&6 OOOr 434 710 O00)(4?6$2 G00;(5S §94 000) 219 032 606 '090000 20374809 198 206 000 °0 0 ° 50 000 $9 009 56 000 50 00¢19,256,747 23,452,369 27,349,766 30 934,809 0 0 °0 19 308 747 23 507 369 27 399 768 30 $69 BCS r)6 6 234592369 «730547 768-226.175 BCS 100 3100 100 6 539.079 #526 682 13519629")6 7 329:552 2 388.477 c 0 ST 156 334 16 968 206 229909965 -«722436,036 717,078 039 210-267 604 (6 073 930)16 407 996)(6 766 436)(7132 260) 373435035 «©-217978038 «=210267 604 =205 135 aa o 6 2 0 9 ¢0 €O04 430 6407 996 €,760 436 7 232,265 ¢6 0 0 "EOSG30 aT SHG ONS AD 260 6 ¢° 238336 747 T30847 "6S 726 175 BOS Combined Balance Sheet Case #10:$15.57/nWh Vanable O&M (2015 Base Case +40%) Unity Piant in Senice Construction Work in Progress Total Utiny Piant Less Accumuiated Provision for Depreciatian and Amortzabon Net Utility Piant Otner Property and investments Cash Short-Term investments Other Current and Accrued Assets Current and Accrued Assets Defejred Debits Totai Assets Membersn.ps Patronage Capital -Beginning Current Year Caprtai Credit Retirements Current Year Net Margins Otner Margins and Equites Total Margins and Equites Gross Long-Term Debt tess Porton Due Within One Year Net Long-Term Debi Other Non-Current Liabdites Snon-Term Line of Creat Current Poruon Lora Term Det! Otner Current and Accrued Liaoites Current and Accived Liattbes Deterred Credis Jota!Lathtes and Equibes 2014 2012 2013 2014 2038 2016 2017 312609801 330 17G8G1 «=354515276 «=«378355270 «=HB S4N 00S «=G0 BAA KOH «=723.083 22064527456.581 769 6713 404 6 647673 6 954 626 war hI)7.266 BOS1G12516«336761570 «361078680 ©=-385 202843 HE SHEA «=B97 EBT 26 ©=--730 380 828 (123 831 4401 1133 396 670;(143 SBS 956)(154 496 936){174 162 006)(194 747 260)(216 278 534}195291076 203362906 «217438724 «=«-230,706006 «=492566634 =503271466 =514072093 21 206 536 21 986 786 22 648 BOS 23:277.122 73,724,289 24 190 B72 24,677,452 408 620 4x7 832 426 168 434 692 453 386 502 253 511.298 0 0 0 0 5 108,222 10.059,396 14.782,423183724134186906161906442919.445 717 19 834632 20 231 324 20 635 951 16 733 TSA 39 168 429 19 490 587 39 880 409 25 436 240 30 792 673 35 929 672 5 184 257 5 .287,342 5,362,489 5,469,739 5,579,133 5,690,716 4,804 530 240 475 622 264940614 279333276 «=ST 106286 863 560 483 748 weuaucaie boseneeee ceekeszae agtgazie gossszcer es exeaciees 239 676 244 466 246 987 254 344 255531 264 726 70.012 92 338 532 Wh 939186 100.281,78B8 «=108.234677 110.988 167137655527 =124 $89 530 (862 406)1959 362)(2 002 618)(1 082 347,(1 106,642)(1 764 833)(1 868 643; 4,486 059 5.303 943 9,965,707 6 801 637 771,202 8.668 837 9,338,459 3587 412 2650 161 3732 344 3.806 991 3883,131 3960 703 4.040 00%"SS 76E 27S «104 185.416 =109.216 378 175 045 502 191798185 =--:128 815043 136 369 168 NOE BES 445 =142 8H VTL «122822184 «=132567 134 389.483.323 --395,.402,511 403,880,896 (5 120 478 (4 228 972)(4 383 B46)(7.229 2761 (12 844.052)(10.B65.263)(14 317.591) TOr7629°1 108.040.699.118 738338 «=«175333058 «=«376622271 «=384 537 249 =389.863 308 1259 0?1 263.603 1 27b6r5 1304 246 1530333 1,356,940 +36 079 6137 464 £076 664 6 495 002 2 342 245 5 673930 9108 201 9 052 O07 6120 4"e 4728 972 4 383,846 7,226,278 12,844,982 10 865 263 14,357,561 34.663 210 14 956 475 15 255 604 15 $60 736 16 871 930 16 169 365 "D2 G1)as SyT36 353 74827 12%34 275 698 36 848 394 39 $58 957 125.1 900 $7 B24,338 43,276 825 13 343,401 14 608,226 563 896 O27Beg061a 163 279 333 276 Combined Balance Sheet Case #10.$15.57/mWh Variable OSM (2015 Base Case +40%) 2018 2019 2020 2021 Uthity Plant in Service .TEV STO BIS «784,308,041 -814.316724 845 228 BOT Construction Work in Progress 7412 144 7 S60 384 7711 §92 7 B65 623 Total Utity Piant 758.783 060 797 B67 325 622 028 116 853 092 624 Less Accumulated Provision for Gepreciation and Amsitzaton (238 7214 760:1262 969 608)(286 369003)+371 585 508) Net Utity Plant 520 068 306 £26797 719 «©835659313 BAS SOV 115. Otner Property and Investments 25,184 62¢28 743,022 26,263 267 26,936,019 Cash $20 524 $29 935 53%534 §49.324 Short-Term investments 18 254 747 23.452 369 27 YAS 768 36.919 B09 Otner Current and Accrued Assets 25:048,676 21,469 643 25 899.04 22 337,017 Current and Aotrued Assets 40 823 S41 45 451 947 49 788 338 $3 806 |$0 Deterrec Debits 5.970621 6039 033 6.159.614 6,283,010 €07001772 «617 870731 678 487 298TolalAssets ssaces = Memtershios areas 266 917 286.533 292 262 Patronage Capilal -Beginning 132 05G 14€140 108 910 348 $82 772 VST 740740 Gurren:Year Capial Creoit Retwements (1 960 46.1 tg 104 634;(2 228.742)(3 154 B14) Curent Year Net Margins 90,030,651 30,578 496 11 388 679 11 864,284 Other Margins and Equites 4120 80S 4 203 225 4287 290 43730% Totai Margins and Equitres 144505430 1830668914 «=1623145337118 arr Gross tong Term Deot 406 535,565 £16,076 099 419,076.36 238 336701 Less Portion Due WithinOneYear 170 281 O88)(14 G45 6421 (16 194 656)118 243 248) Net Long-Term Debt 396 254 477 4201 070 4468 452 861 663 400 093 453 Other Non.Current tiaduipes Tart ot 3,639,G96 +atB 796 A986 170 Shon Terr Line of Credit GIEt 466 fare 3385 635 5 228 06° Current Portion -Loig-Term Deot 70 281 066 14 945 GE?16,154 656 *6 243.248 Other Current and Accrued Lataites TE SU3 15 16 842 420 iJ SBD 286 12 523 894 Current and Accrued Liabiiies 36 760 57%40 998 208 Deterrag Creats Total Liapiites and Equites 164 Case #10 2018 2016 2017 2018 2019 2020 2021 tretcrseeseseess ESTIMATED BUSBAR COST OF NEW EKLUTNA PLANT ***tro sseeeesNetInstalledEstimatedisd Esti d Capacity of Energy Req'd Cost of Now Cost of New Capdat New Plant from Ekiutna Vanable Required Projected Ekluina Power Eklutna PowerInvestment(kW)Wantsila Plant interest Depreciation O&M fuel Cost Margins Cost (S/MWh){$&Wh) 250.600.000 162,222 714 974.628 13:794,000 7 942 000 11.450.725 50787451 2069100 85.723 276 $119.8 $0.11990 Qo 162,222 726,920,248 13,524,336 7,942,000 11.429,861 52,152 3556 2 028,650 87 077,203 $119.8 $0.11979 tf]162.222 739 045.051 13,239,841 7,942,000 11.736.713 53,552 463 1985.976 88.456 993 $119.7 $0.11969 L3)162 222 781,351,727 12,939.698 7,942,000 92,057,476 54.988 668 1.940.955 89,862,797 $119.6 $0.41960 0 162.222 763.643 003 12 623 048 7 942.005 12.374 351 56 461 887 1893457 =91.294 743 $119.5 $0.11952 is)162.222 776,521 648 12,288 $82 7,942 900 12.705.544 $7.973,060 1,843.347 =92.752 933 $119.4 $0.11945 0 162.222 789.390 473 41,936 542 7.942.000 13.045 266 §3.523 151 1.790.481 94 237 440 $119.4 $0.11938 Retail Rate Projection -Base Case 166 $/kWh $0.30 $0.29 $0.28 $0.27 $0.26 $0.25 $0.24 $0.23 $0.22 $0.21 $0.20 $0.19 $0.18 $0.17 $0.16 $0.15 $0.14 $0.13 $0.12 $0.11 *$0.10 "$0.09 $0.08 $0.07 $0.06 $0.05 $0.04 $0.03 $0.02 $0.01 $0.00 113011 Sensitwity -# Sales Revenue per kWh Soild (Annualized) 167 Retail Rate Projection:Sales Revenue per kWh Sold (Annualized) aiid nd 409570.1901 01921 +S nie StI -4793 -0-1821 0.1849 01872frcrenniniiietinaniteTaggggO.172F St . |0.4490.on 2011 2012,2013,«2014.2015 2016 =2017,2018 »=-2019S 2020 -Ss2021 Projected Equity Ratios -Base Case 168 %Effect Projected Equity Ratios:Equity as a Percent of Total Assets 45.0%-- 40.0%EAE Grae __'ee 35.0% 30.0% 25.0% :fee PTR oy eABE BE vay epee ge te a AeA BRTEe etd OES eet eae ced SEIN Aug tet 20.0% 15.0% ' i 4 10.0%ie "4 |7 Meyae!5.0%=iwaonen'};ae ,i;gee0.0%be Mn :einer 2011 2012 2013 2014 26015 2016 2017 2018 2019 2020 2021 113011 Sensitivity e-Distribution System @ G&T System 169 -#-Combined Distribution and G&T System Sensitivity Cases Cumulative Effects on Retail Rates: Cases #1-#3 Capital Expenditures Cases #4-#7 Cost of Fuel Cases #8 -#10 Variable O&M Costs Combined Equity Ratio Cases #1-#3 Capital Expenditures 170 %Effect 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 113011 Sensitvity Capital Expenditures:Cumulative Effect on Retail Rates of Changes in Capital Cost of New Generating Plant SABER ea RRA 8ae ag Pei ate emcees Sheath Lo w a.*- 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 -e -Base Case (§250.8 million)@ Case #1 -20%Increase -a- Case #2 -30%Increase w-Case #3 -40%Increase %Effect 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 113011 Sensitivity Cost of Fuel:Cumulative Ettect &Retail Rates of Changes in Cost of Natural Gas,with Assumed 3X Diesel Multiplier a ESEeeot as ee Teint atenmieeET ae abl shee erate ow, 2012 2013 2014 2015 2016 Base Case ($7.75/mmBtu;4.25X Diesel Multiplier) -e-Case #5 -RIRP Estimate Less 25° -e Case #7 -RIRP Estimate +30% 172 2017 2018 2019 2020 @ Case #4 -RIRP Estimate ($7.75/mmBtu) -©Case #6 -RIRP Estimate +15% 2021 %Effect 45.00% Generation O&M Costs:cum@rive Effect on Retail Rates of Changes in Variable O&M Costs 40.00% 35.00% 30.00% Pere atin RRS cee SC RRR SLU SENNoq ctu USUERMORI ae ap RC AM ERENB TRE 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 113011 Sensitvity 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Base Case ($11.12/mWh)@ Case #8 -Base Case +20% -w-Case #9 -Base Case +30° =Case #10 -Base Case +40° 173 %Effect 45.00% Capital Expenditures:Combi Equity Ratio with Changes in Capital Cost of New generating Plant 40.00% 35.00% JM Et ee aiheteae Be mea EGicm me on SR AAR Eh ee negANESins Be dee oe ea ys valet intce aekciiea oteeementt: 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 113011 Sensitivity 2012 2013 2014 2015 2016 2017 2018 2019 2020 -@-Base Case ($250.8 mitlion)@ Case #1 -20%Increase -w-Case #2 -30%Increase --Case #3 -40%Increase 174 2021 Data Sheet 175 Sensitivity Cases 2011 2012 2013 20146 2015 2016 2017 2018 2019 2020 2021 Base Case: Retat Rate Projection Sales Revenue per bWh Soid (Annualized)0.1450 G1617 &1669 03727 01756 01793 0 1821 0 1849 0.7872 01901 01921 Projected Equity Ratios Distnbuton System 41.5%at 7%442%A1 2%40 4%369%39 5%359%39 9%40 5%405% G&t System 00%00%aU%0 0%09%18%27%37%48%59%70% Combined Orstnbution and G&T System 4 See 417%at 2%S12%22 3%22 BY 245%244%2%26 3%27 2 Capital Expenditures ; Cumulative E tect on Retait Rates of Changes on Capita!Cost of New Generating Plant Base Case ($250 &milion)£57%42 06%75 95%791%20 35%22 25%24 40%25 68%27 63%28 99% Case #1 -20%increase BS7%,+2 04%18 GS%21.87%24 18%2597%27 71%23 18%34.01%32 26% Case #2 -30%Increase 857%42 O48 16 95%23 85%26 10%27 B3%29 52%30 93%32 70%33 90%, Case #3 -40%increase &57%12 Gate 1$95%28 82%28 02%29 70%31 32%32 68%34 40%36 $4" Cost of Fuel Cumulative Effect on Retai!Rates of Changes in Cost of Naturai Gas wit Assumed 3X Diesei Muttipier Base Case ($7 7S/mmBtu:4 25X Diese:Muiupier)BST 1204%18 95%17 91%20 35%225%24 10%2566%2763%2899% Case #4 -RIRP Estimate ($7 75/mmBtu)&57%12 04%15.95%17.35%19 78%21 68%23 53%26 10%27.04%28 39% Case #5 -RIRP Estimate Less 25%857%12 04%15 95%5 GA%&24%16 00%TV 71%13 18%14 95%16 16% Case 86 -RIRF Estmate +15%BS7%12 O4%18 G5%24 20%26 71%28 68%30 61%32 27%34 29%35 73% Case #7 -RIRP Estimate +30%657%12 04%18 S5%31.08%33 63%35 69%37 70%38.44%41 §5%43 07% Generation O&M Costs Cumuative £ttect on Retail Rates of Changes in Valiabe OSM f Base Case ($11 12/mWn}£57 12 Oats 1S SE 17 91%20 3h"22 25%24.40%25 68%,27 63%26 9c® Case #8 -Base Case +20%&57%TZ OdSe 18 9S 19 36%21 Ett 23 73%£8 60%27 20%2S 16%30 Sat Case #9 -Base Case +30%E.57%W.09%HGS 20 OB EBA KAT ODE SR PDR 993%31 3 Case #10 -Base Case +40%BOK 12 Oa',46 Gb,20 81%23 27%oh 24%27.40%28 72%3 69%32 0%: Capital Expenddures Comnned Equity Ratio wih Changes in Capiai Cost of New Generating Plant Base Case ($250 6 mition)ay T2y at 22%4019 72 26%.22 BAe 73 49%23 41%25 22%;26 20%2?23% Case #1.20%increase Ad 22%avo 20 41%:21 GP 24 659%2?59%23 a1%24 a5%275 40% Case #2.30%Increase At 22%4014,1S 60%.00 21%20 88%21 78%22 60%236i 24 £8%% Case #3 -40%Increase a)22%4°19%VE B5'4 19 46%20 14%21 03%2)84%22 86%x3 61% 176 Appendix A MEA's 2011 -2040 Financial Forecast (May,2071) Matanuska Electric Association,Inc. Palmer,Alaska Financial Forecast For the Period 2011 -2040 May,2011 Contents . Page EX@CUtive SUMMALY 2.0...ccc cccccceccessecseesasesesspesessnseseuauenreseseseesecceerss 1 Base Case Results Retail Rate Projection...ccc ccccsssccceceececeessenteaecaeeeecseseetenseentsaes 3 Cost of Power Projection 2.0...e cc ccccce cect eeeeesstetesaeeeeneneeseees 4 Income Statements Distribution System.........elec eee ee cee cae eeeaeeeeceaeeseaeeseaeesceceaeeesegaaeeeaa 5 -GAT SYSTEM oe cic certeneceeeesseensenneeeeseeecesaeeeeceneeannenes 8CombinedSystem.......ccccccceeeectetesetetsterencece re 11 Balance Sheets -DistriDUtion System o.oo ceeeeesseececsceretepersenscssceeserenteeees 14 -GST SYStOM oo.ceccccseecccccsseneceeeceesesesesentecscscecsssseteeeeeees 17 -Combined System 0.0.0.0 eceetetteeeeeeees ceeseeeeettsnesece 20 Major Assumptions -Distribution System...cece cceccneeeeeeecetceeeeetessagensataeas 23 GT ccc ccent cece cceteenceeessccneessssaeecesenesepeacsstersessistaeasecetes 25 SENSItiVItY CASES...cece ceenenentnee es coreaeeeseeerepetaaeaeeeeeeesnteateseeseeeen 27 -G&T Capital InVEStMent.......o cece cceteeessssecseeeeeeeceeeeeers 28 -Long-Term Interest Rates oo.cc cecccccccccscescsrtseetersastaneeess 30 -Fuel CoSts...ce cecssecessssseeesnrecceceneteessseneasencsesntereeccureesnnereereeea 31 Sa OF:1 ¢:Senncree 32 COSt Of POWEF.......cccsccccsssenseecstsssscessccceseesseeseesenseccseceeeeeesessensesucessessenspicreess 33 Executive Summary This forecast represents the culmination of a multi-year planning effort for generation,transmission and distribution system improvements necessary to prepare Matanuska Electric Association,Inc.(MEA)for the challenges of the next decade. Over the next several years,MEA faces a level of capital expenditures that is unprecedented in its history.MEA's all-requirements wholesale power purchase contract expires on December 31,2014,at which time a newly constructed, owned generating facility will go into commercial operation.Significant transmission investment is necessary to integrate this new generating plant into MEAs distribution system.Distribution system improvements at roughly double the levels of recent years will also be required,both to catch up on deferred projects and to prepare for anticipated system growth. The financial forecast is based upon conservative assumptions in all major areas of operations and capital expenditures.The forecast model solves for wholesale power cost and retail rate impacts,after satisfaction of applicable financial covenants (G&T Operating Times Interest Earned Ratio,or TIER;overall Distribution system TIER;and Distribution system Modified Debt Service Coverage). The forecast assumes that the new generating facility will be sized to satisfy all of MEAs power and reserve requirements commencing in 2015.Over the next several months,MEA will continue to explore possible arrangements with other interconnected utilities to purchase all or a portion of its peaking needs.If successful,such negotiations have the potential to reduce the initial size and capital cost of the new facility,with corresponding reductions in the future cost of power and retail rate increases.The forecast does not assume any such savings. MEA's 2011 Operating and Capital Budget was used for all base year values. The financial forecast demonstrates that: -Significant retail rate increases are necessary through 2014, primarily as a result of necessary transmission and distribution system capital expenditures. -The retail impact of bringing the new generating facility on line in 2015 will not be significant relative to the projected cost of power under the expiring wholesale coritract,using baseline assumptions for capital cost ($250.8 million)natural gas ($7.75 per mcf)and long-term interest rates (5.50%). -Capital cost,fuel and long-term interest rates will be the major determinants of the cost of power from the new generating facility. Departures from baseline assumptions for any of these factors could materially affect the future cost of power. All retail rate projections are based on MEA's current rate design.MEA intends to submit a new Cost of Service Study to the Regulatory Commission of Alaska in 2013,with a likely effective date in mid-2014.This regulatory proceeding will include a comprehensive review of MEA's existing rate design.Any changes to the existing rate design that result from this proceeding could cause individual customers,or groups of customers,to experience rate impacts that are materially different from those indicated in this forecast. Retail Rate Projection (Base Case} baw 2011 2042 2043 2014 2018 2016 2017 2018 2019 2620 2025 2030 2038 2040 0.1490 01617 0.4669 0.1727 01756 0.1793 0.1821 0.1849 0.1872 0.1904 0.1992SalesRevenueperkWhSold(Annualized)* 0.2097 0.2205 9.2299 *Rates are adjusted quanerly and will vary throughout the year from the annual avetage Promctes aera!rate for fourth quarter of 2011 =0 15537%Wh, Cost of Power Projection (Base Case) $y Source: Chugach Electric Association,Inc. (Includes assigned hydro) New Ekiutns Genarating Piant Bradley Lake Hydro Eklutna Hydro Overali 2011 2012 2013 2044 2015 2046 2017 2018 2018 2020 2025 2030 2035 2040 0.09549 0.09836 0.10131 0.10435 0.11545 8.19830 011518 6.41502 0.11489 0.11477 0.11626 0.11863 O.1174e 011611 0.04492 0.06582 0.04674 0.04767 0.04862 0.04960 0.05476 0.06046 006675 0.07370 0.00581 0.00609 0.00627 0.00646 0.00665 0.00685 0.00794 0.00921 0.01067 0.01237 0.10692 0.10697 0.10703 0.10710 0.10717 0.10724 0.10768 6.11248 0141219 0.11169 Income Statement Distribution System Base Case income Statement -Distribution Sales Revenue Otner Elecine Revenue Operating Revenue and Patronage Capital Power Production F xpense Cost of Purchased Power Transmssion Expense Distribution Expense -Coeration Drstroution Expense -Maintenance Cansumer Accounts Expense Customer Semice and informationai Expense Sales Expense Administrative and General Expense Total Operation and Maintonance Exponse Depreciation and Amortization Expense Tax Expense -Property and Gross Receipts Tax Expense -Other interest on Long-Term Debt interest Charged to Construchon (Credit) imerest Expense -Giner Other Deductons Total Cost of Electric Service Patronage Capital and Operating Margins Non Soerating Margins -Interest Atlowance for Funds Used During Construction income (Loss)from Equity investments Non Operating Margins -Other Generation and Transmission Capital Credits Omer Capitat Credits and Patronage Dwdends Extraordinary (tems Net Margins TIER Target Achieved TIER Overall Rate Change Required .Current Year Overati Rate Change Required -Cumulative (2011 Base Year) SRF Rate Change (Base Rates Only.No WPCRA)-Current Year SRF Rato Change (Base Rates Only.No WPCRA;.-Last Three Years Modified Debt Service Coverage Ratio -Current Year Modified Debt Service Coverage Ratio -Best 2 of 3 Years Equity Ratic 2014 2012 2013 2016 2015 2016 2017 TOOSTH IT?tea TBD ANG TT SARS |TEE SI76R «=128.517.0764 25565 138,aa4 SOS2-356 ABS 2 380 42%2 até 235 2 428.275 2.452 558 2.477 084 2501 asa 105.927,037 116,§10.829 -121,949.878 «127,999,083 «132.068.5746 -136.752.450 -140.946.360 Q f)6 0 fd 8 0 66 445 30°28 906 320 78 31N BIA 81 870.039 RS 146 309 86 468 429 27,818.328 33450 34.1tg 34 B01 35 497 36 207 37 254 38 412 3986 316 4141 622 3204 761 3268 855 3334233 3.434 260 3537 288 2799 AT>2A75 REO 3.953 387 4032 455 4313.16 4236 497 4363 592 3164 232 R227 S17 3.292 067 3 387.908 3.425.066 3527 818 3.633 653 170 591 4008 177 4B3 181033 184 683 190 193 195.899 0 0 0 0 0 0 0 10 668.862 15 BB2 234 11099 84 11 321.882 14548315 11 8S4 769 12 251.612 87,362,631 "96,241,990 100.073.1796 104,067,670 107,787,892 109,789,288 111,835,783 7.790.000 8.363.516 #930,360 9.557.504 10 272 618 11 078.962 34.907 927 347,658 380 793 386.505 392.303 398 187 404 160 410.223 694 743 708 638 722 811 737.267 752,012 274,573 797,810 5923 308 6 237 639 6 617,452 7 159.628 7781 202 8 698 837 9.338 459 (33.60)(39 660,(34 333)(35.020)(35 720 (36 435)(37 163) 250 123 163 a3?125 522 109 875 58.556 146 546 227.7058 $88 366 12 UR 195 G74 199 89%203 ass 216.008 216 308 102,523,824 -112.265.485 «117017486 =-«-422,189.321 «127.218.638 ©-«-131.066.212 «134.697.0851 3.403.213 4 246.348 4,932,092 5,809,722 4.850.936 5,686,238 6,249,309 52 B92 168 198 758355 «158523 158 694 188868 20 |«1S9 04512.900 12 240 12 485 12 734 12.98%13.249 13514 '0 9 0 9 0 0 (AB:TOI (7 244)(7.461)(7 685)i 7.916){8 153) 349 98?290 909 250 000 200 000 2.419 100 2381815 2238 164 £75 000 £02 249 516.018 628 316 647,166 c f) 4.486.059 §.301,993 1.76 +85 1.90 135 200 2.00 200 1.76 1.85 1.90 1.95 200 2.00 200 857%347%391%197%243%190% HET 12:08%18 95%VF GU 20 35%22 25% AER TGs eas Cia 325%248% pen 180g:sets aan $Bam Sale re Rat rast 1 GB%166%+S°R 1 HRG 1839 1.952 1952 1780 1.733 81.5%,44.2%412%412%40.4%39.9%39 $" income Statement -Distribution Saies Revenue Other Electne Revenve Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Transmission Expense Oisintution Expense -Operator Distrdution Expense -Maintenance Consumer Accounts Expense Customer Sernice and Intormationat Expense Sales Expense Admmnistrative and General Expense Total Operation and Maintenance Expense Depreciation and Amortization Expense Yax Expense -Property and Gross Receipts Tax Expense -Diner Interest 04 Long Term Debt interest Charged to Construchon (Creaty interest Expense -Otner Dher Deductions Total Cost of Elactric Service Patronage Capital and Operating Margins Non-Operating Margiis -interest Atiowance tor Funds Used Gunng Construction tncome (Loss)fram Equity investments Non Operating Margins -Oltier Generation and Transmission Capilai Credits ine:Capital Credits and Patronage Dwidends Extraordinary items Net Margins TIER Target Achieved TIER Overall Rate Change Required -Current Year Overali Rate Chango Required -Cumutative (2011 Base Year) SRF Rate Change (Base Rates Only,No WPCRA)-Current YoarSRFRateChange(Base Rates Only,No WPCRA)-Last Three Yer Modified Debt Service Coverage Ratio -Current Veor Modified Debt Service Coverage Ratio -Best 2 of 3 Years Equity Ratio 2018 2019 2020 2025 2030 2035 2040 142653459 9 46.E57 BO2 TEN TSB TTO ©179.631.8768 «=193490508 =.219 162340 240.120 0142.526 873 2582 142 2.577 663 2 709.150 2 847 344 2.992 587 3 145.239 145.180,332 149,189.944 183,716,433 173,340,978 198,337,853 222,184,927 249,265,253 o g G if 0 0 Q BG TRP YES Te GAG TT GZ NG8 77S 4 AGT ADD TTT 092 229 120,329 936 129 O58 939 3G SAS 4075,41974 48.660 56 410 65 395 75 810 3,643,407 4782 THe 3 BAS 296 4 486 930 5 194.627 6 021 996 6987144 4454 499 4629 14 4 7A 214 S827 687 §458 081 7 428 723 8.611 926 3742 663 3854 Sa?3970 591 4603 003 5 336 142 6.166.051 7-471.329 DOL TIA 297 P24 214 064 248.158 287.684 333 $04 386 623 6 0 0 ry 0 i)i) 12,619,166 12:G97735 *2:387.667 18.519 976 17.991 905 20 857.549 24.179.616 143.928 19S 216.067.218 -«-118.253.571 129,919.823 147,267,078 «161,223,153 176,465,386 12 700 918 TRS05B7R 44 393 S64 16 707 O11 23773426 «=29.718.684 36.63.7158216.376 422,622 428 961 462113 497 827 536 301 577,748 e2t 744 B46 46 871 788 1010 641 TiT3,610 1 $58,218 1574546 16 030 651 VE 875 4G 11586 679 T3028 44e Va 618 agg AT ISO 174 79.851 437 37907 38,6653 189 43;(43 5455 148075;(53 O78}158 603) 226 300 208 707 136 G33 484.727 1075251 1248 768 1,545 372 222,797 229 481 246 366 274013 317 656 368 250 426.903 138,309,074 141.837.2146 =-145,608.424 «163,738,984 ©188.470,.204 -«-23,550.669 «236.596.5058 "6.875.258 "7.352.730 «8.108.009 9.601.993 7,867,549 10.604.257 12,668,748 169.226 189 410 749 599 160 598 16t 701 162 919 164.263 13 784 14 060 14341 15.834 17 482 49.301 21.310 0 0 r)0 0 i)6 1B 398)'8 680)(8 90%)(10.328)41.973)(13 880)(16 09°) 2 287.603 2329 552 2.463 395 2 386.665 2,489,215 1778 686 395 322 TOT 77 728 393 750 245 6S 739 1008 266 1 168.857 1 355.625 a 0 0 i)0 i)0 10,030,651 10,575,496 11,386.679 13.024.499 11,832,343 13,720,139 14,588,577 ore wacreente pteresea=veasee2 eeceveze:ses 200 200 2.00 2.00 1.80 +80 175 2.00 200 2.00 2.00 4.80 1.80 175 1.86%1.58%1.94%1.08%111%1.45%1.49% 2410s 75 BBN 27 63%43 75%45 79 48 03%54 31% De *Gary 2 48%Vi 126%154%Tas ett bts aes a a6”SAR 4435 aon VR,2163 rite TESA 1 BAY 17a 177%) 4.750 202 1.933 $637 1790 1772 1762 39.9%399".405%42.2%40 6%40 0%40.1% Income Statement G&T System Base Case income Statement -G&T 2011 Sates Revenue Other Elecinc Revenue Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Transmission Expense Oistnbution Expense -Operation Distribution Expense -Maintenance Consumer Accounts Expense Customer Semice and informational Expense Saies Expense Administratve and Genera!Expense Tota)Operation and Maintenance Expense Depreciahon and Amortization Expense Tax Expense -Propeny and Gross Receipts Tax Expanse -Other interest on Long-Term Depo! interes?Cnarged 's Constructor (Crean interest Expense -Other ithe Deductions Total Cost of Electric Sorvice '1t1Patronage Capital and Operating Margins i|elo,or:Non-Operating Margins -Interest Allowance tor Funds Used During Construchan Income [Loss)trom Equity investments Non Operating Margins -Otner Generation and Transmission Capital Creats Other Capitai Credits and Patronage Owisends Extraordinary Items oOcrO51POMS{1{{\ciealoosxs5cacie!2015 2017 8S 146 30%67 615 328 0 0 0 65,146,309 87,615,328 )58 BY 510 62,105 086fa)2.444.699 2 542.424 0 6 0 0i)0 i)0 0 a a a i)°0 i) 0 i)0 0 c 0 0 6 0 ie]0 0 C)61,341,209 64,647,511 0 787010 7 942 000 ¢a ci)i)9 c 13734 000 15 239 641Gf) C ia 0 4 85,829.351 1,985,976 fomny252,588 Not Margins Operating TIER Target Achieved Overall TIER Equity Ratio i) 0 5 0 0 uo1foo0o0onnoloeoweOoloovron.w09%wenoovo00ogq27% income Statement -G&T Sales Revenve Otner Eiectnc Revenue Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Transmission Expense Oistnbution Expense -Operation Oisindution Expense -Maintenance Consumer Accounts Expense Customer Semce and Informational Expense Sales Expense Aaminustrative and Generai Expense Total Operation and Maintenance Expense Ceprecation and Amomzation Expense Tax Expense -Property and Gross Receipts Tax Expense Oiner imerest on long Term Dedt interest Charged fo Construction 'Credit; Inlerest Expense ©DtherOtherDeductions Total Cost of Electric Service Patronage Capital and Operating Margins Non-Operating Margins -interestAllowanceforFundsUsedDuring Construction income (Loss)from Equity Investments Non Operating Margins -Other Generation ang Transmssion Capital Creaits Other Capital Credits and Patronage Dwidends Extraordinary items Net Margins Operating TIER Target Achieved Overall TIER Equity Ratio 2018 2019 2030 2035 2040 be BT tye 00 583,902 111 990 22%420229536 «179 55H GIG "ia i)fu ¢ 89,187 $25 90,583,917 "92.605.770 99,491 129 414,992,228 120.329.936 129.058 939 62771 290 BE ARC D4 67 233 ave 76 699 993 87 448,330 99.649 51G 113,497.36 2593 O73 2648 18 2698 Gat 2978855 3 288 897 3631 208 4009 147 6 8 )6 0 ')0 9 c 0 ')0 Q 0 j '0 Q 0 ')0 Q 5 0 0 )D 0 5 5 9 0 0 0 0 6 Q 9 Q 9 0 0 6 é 0 ))0 0 66.364.472 68.125.412 "69,931,444 73 678 848 90.737 ,227 103,280,727 147.506 .533 "7847030 7942000 ©a2 000 7162 000 9425035 9.429035 9 429 035 3 £a 9 0 0 0 a 4 ')0 0 a 0 42 939 658 12 B23 cad 12 ERB 482 10 321,983 10 263 449 6 626 238 4.846 4105)c t 0 G 0 0 4 3 G 6 0 ')0 a u a 0 0 0 9 '87.246.171 88.690 460 90.162.423 97.942.831 110,448,734 119,336,000 126,781,978 1.940.955 1.893.457 "4,843,347 1,848,298 4,542,517 993,936 276,961 "RR ASH 38 GS§|S«RDO OAT 848 366 946 702 7ha,750 118 360 9 :0 0 ')0 0 3 5 C 0 0 0 9 5 6 0 0 Q 0 ' DB)tr ig 0 tt)Q iJ 0 9 o Q 0 0 0 Q 5 G 9 r)0 Q 2.287.603 2.328.552 2.363.385 2.386.663 2.483.219 1.778 666 te sisset raucesze:esuzseras sstaceezs ecesssae 11s 18 as 1.18 145 +46 a 48 4 Vea 24 tet > 37%ae 5.9%12 5%176%314%62.5% Income Statement Combined System Base Case Combined Income Statement Sates Revenue Gthet Electric Revenue Operating Revenue and Patronage Capital Power Produchon Expense Cost of Purchased Power Transmission,Expense Distnbution Expense -Operation Orstrdution Expense -Maintenance Consumer Accounts Expense Customer Sermce and Informational Capense Sales Expense Administrative and General Expense Total Operation and Maintenance Expense Depremation and Amorization Expense Tas Expense -Property and Gross Recempis Tax Expense -Other interest on Long-Term Dent interest Charged to Construction (Credit) Interest Expense -Other Other Deductions Total Cost of Electne Service Patronage Capital and Operating Margins Non-Operating Margins -interest Attowance for Funds Used During Construction income (Loss)from Equity investments Non Operating Margins Other Genesation and Transmission Capital Creaits Other Capital Credits and Patronage Dividends Extraordinary Items Net Margins Achieved Overall TIER Overall Rate Change Required -Current Year . Overall]Rate Change Required -Cumulative (2044 Base Year) SRF Rate Change {Base Rates Only,No WPCRA)-Current Year SRF Rate Change (Base Rates Oniy,No WPCRA)-Last Three Years Equity Ratio 2011 2012 2033 2014 2015 2046 2017 WIS AF Ma TAGE IE SASS NTE S70 766 ©12R BIT OIG «=3a 278 IBS |3B ads $US2ASEBRO2380.479 2404235 2 428 275 2.452 558 2.477.084 2561 ASS 105.927.037 116,810,629»121,949.678 127,999.03 «132,060.57 «136,752.450 140.946.360 G a Q ")58.697.510 60 480.865 62,405,086 66.445 308 74 906 329 78 310.813 81870.036 2 443.695 2.492 $73 2542 424 33,450 34,119 34801 35.497 36.207 37 294 38.412 3080 316 1141 922 3 204,761 3.268 BS6 3.334 233 3.434 260 3.637 28a3.799.872 3 B75 865 3.953.387 4032 455 4113.104 4.236.497 4 363.592 3164 232 3227 517 3292 067 3357 968 3.425.066 3527 618 3.633 653 170 991 174 003 177 483 181033 184 653 196,193 195 899 6 0 0 0 0 0 0 10.668 642 10.882 239 +1096 ana 11321 882 19548.319 11-894 769 12.251.612 27,362,631 96,241,990 100.073.196 104,067,670 ---«&3.982.792 86,294,273 88.667.966 7796 G00 «8.383.516 8.930.360 6,557,504 18214618 19,020,962 15 649 S27 367,658 3BO 79%326 505 392 303 398 187 404,166:410 223 694 743 708.638 722A 737.267 752.012 174 $73 797 810 §923 305 6 237,836 6.617 452 7.159 B28 21 575.202 22.223,173 22,578 300 (33.606)(33 666,(34 333){35 020)(35,720)(36.435)(37 163) 250,123 153.437 128 522 109.875 58 556 146 648 227 705 168.364 192 111 195 G74 199 843 203 891 210 008 216.308 102.523.824 112.264.4B5 =947.017,486 ©122.989.32t ©-125,149.538 =129.037.862 --132,711.075 "3,403,293 4,246,344 4,932,092 5.809.722 6.920.036 7,714,888 8.235.285 352 6492 158 192 156 356 158 523 208 694 312,032 411233 12 000 12 246 12 485 12 734 12 989 13 249 1a 5ta5)0 Q 6 0 0 0 1B B28:(7 0331 (7 24a)(7 461)(7 685)(7.916)(8153: 349 GBD 296 060 250 650 200 000 0 0 0 575 O08 59?259 610 018 628 316 647.168 666,583 686.580 0 Q 0 6 0 0 0 4 486.059 5.301.993 $955,707 6.801.837 8,698,837 9,338,459 secescezs seezsezes :aatsssuse eeuuzates wis 1s 186 190 195 1.36 1.39 141 B57 347%3.91%197%243%130% Bat "28 18 O5%wy GT 26 38s,of 28% .:st 9 tats Vaan >ane ?1402 VEZ,aan'8 fa ear 448 avr 41.2%an 2%223%228%22.5% Combined Income Statement 2018 2019 2020 2025 2030 2035 2040 Sales Revenue 142 653 459 146 637 802 154 136.770 170 63%B28 193,490 509 219.162.340 246 120 014OtherElectricRevenue2.526 873 2,552,142 2.577 663 2709 150 2.847 344 2 992 587 3,145 239 Operating Revenue and Patronage Capital 14§.186.332 149,189,944 183.716,433 173,340,978 196,337,853 222,154,927 249,265,253 Power Production Expense 63 771.200 6§,480 274 67 233 400 76 699 953 87 448 330 99 649.519 133 497 386CostofPurchasedPower259327264513826980412.978 855 3 288 897 3.631208 4 009,147TransmissionExpense3956540752argv486605641065.395 75,810CrstnbutionExpense-Operation .3,643,407 3.752 709 3 865.290 4 480 930 5 194 627 6 021 996 6 981 144 Distnbution Expense -Maintenance 4404 aug 4629 334 4 7HR 218 §$27,667 6 408.081 7 B28,723 8.611.926ConsumerAccountsExpense37426633.854.942 3970 591 4603 003 5 336 142 6 186 051 7.173 329 Customer Serice and informationa!Expense 201 776 207 629 214 G64 246 15R 287 684 333 506 386 6235SatesExpenseie]is)6 0 0 Q a Administrative and Genera!Expense 2.514 10 12597 7236 13.387 667 15.519 976 17.991 905 20 857.549 24 179 616 Total Operation and Maintenance Exponse 91,105.541 =93.608.713 -86.979,.261 190,107,242 126,012,078 144,173,948 164,917,980 Depreciation and Amortization Expense 26 647 UB 20 447 R78 22 278 Se 26 645 G11 33 202 463 39.147 919 46 042 750 Tax Eypense -Property and Gross Receipts 416 476 422 622 428 961 462 113 497 827 636.301 577 748 Tax Expense -Sther 821 746 446,356 874 788 1010 641 1.171.610 4.358.218 1574 S46 interest on Long-Term Debt 22 S70 .480 23198 544 23.675 66t 23346 483 24 698 878 23.776 412 21 297 B46 interest Charged to Corstructon (Creadti {37 957,138 5659)149 438)(43 544)148 O75)(53 O78)($8,603)Interest Expense -Olner 226 400 228 787 136 9233 384,727 1.078 251 248 768 1545373 ther Deductions geg4es 236 366 27a Ory 317 656 368 250 426.903 Total Cost of Electele Service 136.368.120 139.943.757 143.765.076 «162,190.68?-«186.927.6R7 -«210.556.734 236.319 548 Patronage Capitai and Operating Margins "8.812.243 "9.246.187 9.951.387 "44,156,291 ryt 0,166 11.598,"12.945,709 Non-Operating Margins -Interest 605,874 598 505 670 646 948 963 «+1308 402 947 668 2R2 623 Allowance for Funds Used Quang Construction 14 O80 143461 18 834 17 482 19,301 21,310Income(Loss;from Equity Investments fe)i is}0 6 a Non Opetating Margins -Other 46 G80)(8 GOS)(1G 328)(11.973)(33 880)(76.05%)Generation and Transmission Capita:Creaits te}(¢]it}0 0 Otner Capita!Credits und Patronage Dividends 756 245 869 739 1008 266 1 168 857 1.358.025 Extraordinary ttems 0 9 0 0 0 Net Margins 7 13,024,499 11,532,343 13,720,138 44,688,577 ss ese 2 terernsar Achieved Overalt TIER 144 146 148 156 147 +58 168 Overall Rate Change Required -Current Year 186%158%194%108%TII%145%449% Overat Rate Changa Required -Cumulative (2011 Base Year}24 16%28 Bats 27 AR.Ree a 79%,48.03%54.31% SRF Rate Change (Base Rates Only,No WPCRA)-Current Year at5e Pee TAI 176%+54%,+61 SRF Rate Change (Base Rates Only.No WPCRA)-Last Three Years Rite BASS 3 9dr 368%4 63%q 49% Equity Ratio 244 25.2%263%309%31.3%346%38.8% Balance Sheet Distribution System Base Case 14 Balance Sheet -Distribution Unity Plant in Service Construction Work in Progress Total Utiity Plant Less.Accumulated Frovision tor Depreciation and Amortization Net Utdiy Plant Otner Property and tnvestments Cash Short Term Investments Other Current and Accrued Assets Current and Accrued Assets Deterred Devils Total Assets Memberships Patronage Capilal -Beginning Current Year Capital Creat Reirements Current Year Net Margins Other Margins and Equities Totai Margins and Equites Gross Long-Term Debt! Less:Portion Que Within One Year Nei Long-Term Deb! Other Non-Current Liabilities Shert Term Line of Cramit Curent Porvon Long Term Debt Other Curent and Accrued Liatntes Current and Accrued Liabikties Deferred Croaus Tolai bablbes and Equities 2011 2012 2013 2014 2015 2016 2017 312 669.601 =330.179 801 «=354.315.276 =-378.355.270 ©408 746.008 «=440064 408 §=-472.283.82964527156581,769 6 713 404 6.847 673 6 984.626 7124319 7 266,805 9122515 336767 87G «=HT OZESAD «=3BH202 943 «495.728.6346 ©44716RT26 ©479550825 (123,831,443,(733398670.(143 584556)7154 496.936)(166 220,000)(178,863 260)1192 452.531) 195291076 203162900 217 aah 724 «=FRO TOKO «=245.508,.634 268905466 287 SN 093 21 296 535 21 3AP TRE 22 Rab BM 23.277 122 25 863 389 28,495,787 31216531 409 82°Tate 426 168 434 642 443 356 452 253 461,298ify8ia)Q G ie}0 1A324 134 1A 690 616 1 084,426 19 $45,717 19 B36 632 20.231 324 20.635 951 R743,758 19 108 629 19 499 447 19 8B 409 20 278 a7 20,683,578 21,097 286 5 184 247 5 A6L.487 5.46%TAS 5 690 716 5 04 530 2A4 GAN BA 345 216 404 239 875 A446 28 357 254 344 259.4631 264.620 269.912 G2 335 $35 95 939 186 *00,284 768 105 234 677 410 984,167 417 655 527 124 589 530 (662.406)1959 392)(1 002 816 (1.052 347)(1309 B42)11,764 833)(1,868 843} 4 486 05%5.303 993 §955 707 6.807837 7,784 202 8 698 837 9.338 459 3 587,412 3.688.161 3732 445 3 806.997 3.883 134 3.960.793 4040,009 G9 766.273 Tad THE AH «©TOG PTE ATA «=31GH045 502 «=121798089 «=328.814.9483 76 36S 068 106.082.4499 132,258,071 «122522 1A4 =TSE SE2.334 «=142566301 184 BTA 1B1 168,613.652 (5 120 478)(4 228 072)14 383 BAB)(7.688,4°0)(5.468.126)(8.560.312) ;eG TENSE 338 Vigagr ast =tae Ta TNS «=TAG AST 348 1226 622 1282 403 1 278 675 1 304.248 1,330.333 156 a0 4 384 07S 6 137 464 k64 2.342 249 5873939 9,708,201 $952 007 $120 473 are 7,229,276 7668 416 5 408 126 8560 492 '14.063 246 +5255 606 15 $60 716 15.875 930 16,189 364 2A G1?446 ba?129 26 103.096 3u 3b8 258 33 801 686 Balance Sheet -Distribution Untty Piant in Service Construction Work in Progress Total Utiity Plant Less:Accumulated Provision for Depreciation and Amomzation Net Unhity Plant Other Propeny and inves!ments Cash Short-Term investments Other Current and Accrued Assets Current and Accrued Assets Deferred Debits Tolai Assets Memberships Fatronage Capital -Beginning Current Year Capital Creat Retirements Currant Yeat Nat Margins Other Margins and Equites Total Margins and Equities Gross Long-Term Dent Less Porhor Due Within Une rear Net Long-Term Devt Other Non Current Liabiities Shon Term Cire of Cred: Current horn Long Tare Gent Other Curent and Accrued Labuites Current and Accrued liabditias Oesterrad Credits Totat Gapbbties and boqianes 2018 §00 570 919 74t2 149 2019 523 506 Gat 7 Sh Wa 2020 863 S16 724 7744 592 2025 751 695 802 8514 220 2030 526 987 518 9 400.387 2035 1159018 697 16.378 787 2040 1421 552,962 11459 019 SC?983 O60 1206 ,946,76C;M222 359 $41,067,305 $71,228 316 936 JE?262 458 950 295: 1169 397 484 1614 626 844) 4433012 SRD (807 239 247) 3016363968 aE5 205855 477 ANTGOT «©«554.770 Gee 34.011.311 36 869.256 39.782 896 £4 678.326 70,616 367 85 671 420 96.121 159 470.524 47g 945 489.534 540 488 596.739 658 848 727.421 9 0 fy 0 0 Q 0 21 048 676 21 469 643 21 BSG 026 24 178 308 26 694.803 20,472 219 32 540 B16 "21,579 134 24 945 578 22 388 570 24,718 799 27 291 544 30 132 067 33,268 237 5920624 ASG 816 6 BGO 932 7508 779 8250 295 9143 160 362 467 426 400862592 491.663858 582624294 678864427 764 316 290 aasescsr=zene verceesce ceezeeger esztzzems cesunezes 275.311 286,817 286 433 316,245 349,160 3A5.501 425.625 132,089 146 146.108.910-148.$82,772 193.412.320 =-225.421.591 257.966711 --292.495.407 (1,580,887)(2 103.634){2 228 742)(3.868 246)(5,635,540)(6 449 168)(7.352.385) 10,030,651 10 575 496 11 386 679 13.024 499 11,532,343 13,726,133 14 588 577 «$20 809 4 203 225 4 287 290 4733515 5 226,182 5770 128 8370 687 484,505,020 236893.737 «=271393331 ©306.567 Ott 477 G25 6X fa BAT TER 372 RR aae 4181 656 4207 to fia! SA 153 O66.As4 tu?$86 N45 VRRAT R40) jhe Mad 14 06 S ATT BOF BERT Bah Pa ale 162 314433 267 618 333 148 278 229 752 799 112 889 296, 216 993 595 261 659 GOS (11494 368) 250 168 3OR 892 356 (17,846 488) 2uh 46 347 673 8) (20 105 234) 527.568 748 1521 689 1,799,454 5585 634 IT 77R 463 43933 BIG 1 434 20%12 819,296 11,496 J6R "7 1Or,Dae TRGAR apn 21 442 675 "WObs tat £9,565 KA 7HORTO.ATA Th Gada Boe "7657 AGS A 23 BOR 1978.806 $4 G43 647 $7,846,568 23.122 408 pe ath 602 674 Bha 427 2 182 554 FC GD4 O34 Balance Sheet G&T System Base Case Balance Sheet-G&T Unldy Plant in Senice Construction Yark in Progress Total Utity Plant Less)Accumu.ated Provision tor Depreciation and Amortzanon Net Stuty Plant Oiner Property and Investments. Casn Shont-Term investments Ouner Currant and Accryed Assels Current and Accrued Assets Deterred Oekits Totai Assets Mamberships Patronage Capita!-Beginning Current Year Capital Credit Retirements Currem Year Net Margins Other Margins and Equites Total Margins and Equities Stoss Ling "erm Debt fess.Portion Due Witur One Year Ne!Long-Term Cebt Other Non Courrent Leatibhes Shon.Teen wine of Cregs Curent Portier Long len (ett Other Current and Accrued Lianines "Curent and Accrued (iatibtes Cetered Credits Tolat Lapites and F qutes 2011 2082 2013 2014 2015 2036 2017 i?)it}is}is 250 89G 050 250 800 0090 250 605 060 is t 0 iy fey iv)is) 3 t -'$=bsp ano GGG:SC"(iti«KD BODO ©=-s-280 BOD 000 6 a "3 17.82.6000: (15.884.099)423.876 000) 4 "3 n "G2 854506 =238916009 226.974 000 6 6 $3 0 0 6 0 )t c 50 009 50 009 50 000 id [9]0 ie}§108 222 10 059 396 14 782 423 0 6 9 0 0 0 0 3 0 Q 0 5.158 222 10 109 396 14 832 423 Fa 4 c )0 ")0 3 0 G 0 248016222 245025396 241606423 euwsensas secanzece 2 pexesaaze soeseescs sueaueazs 6 &Qo [)100 100 106 3 c 6 o 0 2.419 100 4 300.915 4 2 0 9 0 8 ' 6 0 Q G 2349 100 2181815 2 238 164 0 0 0 0 9 9 0 G D 0 2 339 200 4307 G15 6 539 174 0 6 6 0 245897022.240724381 «=235.267 244 1 5 o "S172 Gat:{5 457,137)§§787 279%, a.a:4 0 «240 7243AT =TAS 267244 «©229.805.465 9 Q Q c 9 )6 ia "3 Pi u *.G Rast Uy &TE7 37G a a %ia) a n a > is)}0 ce Te °'os es Balance Sheet-G&T Utility Plant in Sernce Construction Work in Progress Total Ubltty Plant Less'Accumulated Provision for Depreciation and Amortization Net Utility Plant Other Prapeny ang Investments Cash Shon.Term tnvestmenis Oiner Current and Accrued Assets Current and Accrued Assets Deterred Debus Total Assets Memberships Patronage Capital -Beginning Current Year Capital Credit Retuements Current Year Net Margins Other Margins and Equitres Tota:Margins and Equities Gross Long-Term Debdt Less!Paring Due Wohin One Year Net Long-Term Det! Other Non Curent Uiabdibes Shot Term tine of Credit Current Portion -Long:Term ett Other Current and Accrued Lathes Current and Accrued Liabitities Cetered Credits Tota!Lathes aod Equnes 2018 2019 2020 2028 2030 2038 2040 250 BOS.NNG =SH BGOD OGD «=PSG BOGOCG «=25,800 006 =-297,759000 --27.7549000 «297.74 000 4 a 0 t 0 0 0 260 800060 =750800000 «=750 8G0.000 280 BOD 000»«287759000 ©=-«-287 789.000 -«:297,789,000 (31788009:(35.719000.147 642.000)(#7 362000)(130.046.070)177,191 245)(224.396 420) 219632000 «239550600 «=203 148000)165438000 «=167712930 =120567 755 473.422 58D 5 0 6 6 )0 0 8y 900 £6 56.990 £0,000 $0,000 1 50.706 28a tat 24462 409 27 345 768 41421 Sak 44 789 048 42.223 768 15538011 :9 0 0 0 0 "73 aia Tat 74502 359 27 anu THR 41371 Gab 44 830 048 32073.708 =«11,58B O11 0 Q Q 712551976 152 S41 463 85.070 541 aaisaucsr eccs 196 130 106 300 150 6 534 07%23125 7582 38 605,146 4628742)52 698 438 ig}it}o o i) 2 287 605 2 386 663 2.48%215 2778 646 495 222 i}9 0 5 a BH26 782 "ges1251$a7 49a 465 4B C48 907 53.003.859 229504965 =223.456.055 --217,628.039 «179.207.433«175.0S7.8%3 104,905 556 a1 H16,732 66 6307 G36 16 760 436:(8835649)(12,566 57B)16 427.535)(141.878) BOI 210.26 *606 "70.461 614 162,487,935 Bear?62t 31.774 053 'q 4 o 0 G Q 9 4 a 0 a)0 0 ROTIGR 6 407 Sy BAIS HIG 12.869 876 18427 935 441 ara ©0 0 Q F) 6353 64D 640?958 "B B36 6:9 12 569 578 1H 427 535 3141.R7E is 0 Q if 27P 338 74>PAE 8GZ 48S 157 G41 463 Balance Sheet Combined System Base Case 20 Combined Balance Sheet Utiity Plant in Senice Construction Work in Progress Total Utity Plant Less'Accumulated Provision for Depreciation and Amonization Net Utility Plant Other Property and investments Cash Short-Term invesiments Othe:Current ang Accrued Assets Current and Accrued Assels Deferred Debits Total Assets Memberships Patronage Capital -Beginning Curent Year Capial Creat Rettements Curent Year Net Margins Other Margins and Equities Total Margins and Equities Gross Long-Term Debt tess Porton Due Vithen One Year Nel Long-Term Ded! Other Non-Current Liabuities Short-Term Line of Credit Current Portion -Long-Term Debt Other Current and Accrued Labihtes Current and Accrued Liahdites Oeterred Credits Total Liabinhes and tquites 2011 2012 2013 2016 2015 2016 2017 2976689601 ©330,179801 «354515276 «378.955.2705 544008 «=90 Bae 408 =--723.08.9 BZO 6452715 6 581 769 6.713 404 6.847 673 6 984.626 7,124,319 7 266.805 319122516 --336.761,$70 -361.628.680 «=385.202.943 666 S7R634 «=697.96B.726 «730.350 625 (123831440;(133.398.670)(143 589.956)(154 496.936)1174 162.000)-(194.747.260) (216.278.531) 195293 076 =.203362900 «=.297 438.724 -«-230,706.006 «=452 366.634 =503.221.4656 =814.072 093 21.296 536 21,988 766 22 648 B04 23.277 122 23 724 284 24,150 B72 74,677,452 495 620 a7 8i2 426,168 434 692 493 386 $02,253 511,298 0 0 0 ry 5 108 222 10.059.396 14,782,423 38 324 134 18 696 616 19 064,429 1§48,717 19.834 632 20 231.324 29 635.951 18743 754 19 108 429 19 490 597 19,880 409 25,436,240 36,792,973 35 929 672 5 154 257 5 257.242 5 362 489 5,469,739 §579.133 5.690.716 5.804 530 240475622 249717 456 ©264 GANGI4 «--27G532.276 «=S47 108256 «=563.856.027 --580.4B3 748 eesesesst casuctact eirceezes |saaereess aescueres eacesesce =see 239 675 744 468 249 387 254 34a 259531 264 720 270,012 92.335 533 95939186 100 281,788 «105,236,677 110984.167 117655.527 124 589 530 (BB2.4061 (455.392)17 002 818)(1,052 347)(1,109 842)(1.764 833)(1,868,843) 4 486 059 $.301,993 5.955 707 6 801 837 7,781 202 6 698 837 9 338.459 3587 412 3659 161 3732 344 3.806.991 3.883 131 3.960 793 4.040 009 GG76h 274 104 186 4IH «=104216.378 «=118045502 «=121 7GR 189 «=128815043 «=236.389 168 106 883.440 =«112.268971 «122522184 =192.562.3936 «389.463.3232 «395.402.5351 --403.880.896 (5,126,478)14 228 072)(4.383 846)(7229276)(12.841052)(0.865.263)(14,317,891) 101,762 671 108 GAG AOD 1199 4R AB 129 343 058 376 622 273 304 $37,249 389.563.305 1224 622 1.253603 1.278 675 1308 248 4330333 1356 940 1384079 6 137 464 5 920 R64 4 295 002 2.342 249 5.873.930 §108,201 $652,007 $120 478 4-228 072 4383 846 7,229,276 12 841.052 10,865.263 44517591 14.375 696 14 663 210 14.956 475 18.255.604 15 560 716 15,871,930 16 189.369 25633636 9 23,512,146 23.735 523 24.827 129 ha 275 BOR 35 845.394 39.558 967 12 328 462 12.571 900 12 823.338 13.079 805 13.344 401 12..608.229 24g 717 48 GAs 640614 «279333276 ©547 106 258 «=$63.BGH.027 «FANART 4Apeseerees9sauerare:pivaerces =ae Combined Balance Sheet Ubhty Plant ie Senace Construction Werk in Progress Total Ubity Plant Less Accumulated Provision for Depreciation and Amortization Net Ututy Pant Other Prepeny and investments Tash Short-Term investments Other Current and Accrued Assets Curent and Acctued Assats Geterted Debits Tata!Assets HMamberstips Patronage Capital Beginreng Curent Year Capital Creat Retrements Current Year Nel Margins Other Margins and Equites Total Margins and Fquities Gross Long Term Dett Less Porson Due Within One Year Net Long Term Cert Otner Nan-Cunert Lathes Sror-Terr Line of "reat Current Porton -Long:Term Debt Other Current and Accrued Liatiltias Current and Accrued Liablpas Deferred Credds Total Liabates and Equities 2018 2019 2020 2025 2030 2035 2040 TEC 3IC GIG «=-764 308941 BNA 16.724 «©«GB H9G BO?«1224716515 1456777697 1719-312 962Tayatat7$66 384 TTA $42 8514 220 9 400.387 10 378 787 11,459.619 TER TRS 960 ©997 BH7325 --APZOQZK 316 «-GG1.2IA,O22 1,238 116.902 1.467.158.4841 730 771,962 1262 064658)286.369.0002,422 490.172)588.996 365)(791 818 088)(1.031.575 667)123K 7°4 7601 S25 797 718 559313 568.723.8590 646120537 675336397 899 195 314 25713 022 28 263 267 29 365.511 33 122.001 37 635.613 43,027.460 520 528 529 935 535 534 590 485 646 739 708.648 777.42) 1 25a Pat 23:452.369 27 349.768 41321 968 44.789.046 32,323,708 11,538 O14 27048 670 21 469 643 21.899 036 24.178 305 26 694 803 29 473.219 32,540.816 7 G4)45 451,947 49.788 336 66 090 738 72190589 62.505.7748 44 656 248 5920624 6 035.033 6155 B14 6 BGO 932 7.508.779 8.290.299 9.153.160 £91.997,491 607 001,722 G17 B70.731 670.481.4351 «787 BB"907 «=-«-783,770.083 748.233.128 nasectses neamarere geseasres 0 rcascsass seceeezss eerzsece 27641 7a0 417 286.533 316 345 349.260 385,601 425,725132069166$40 108970 148582772 193.412 320 225421591 --257 G66 711 --292 495.407 14,980 887;(2101 634)(2 228 742)(3.268.246)(5.635.540)(6.449,168)(7.312 385) 19 G30 651 10.575 456 11,386,679 14,026,499 14,532 343 13.720 139 14 588 $77 4 120 809 4 203.225 4287 250 4.733.515 5.226.182 5 770.728 6 370.687 144 §C5 730 153068914 162314533 207818433 236.893.837 271393411 306.568,.011 405 538565 416016060 419976318 =409050252 436 717415 =439.797.912 --979.590.713 110281088)114945642;(16,194.656)(21.6$4.91S)(24.063.546)-(23.974,523)(20,247,912) 4 401070448 4026817663 «387395317 «4126534670 «=379823388 «=.359.343 601 1.439.448 1,621 669 1 700.454 1976 ADK 2182 553 3°81 486 Sarr rey 3 36S 6358 47 778 463 43 G33 830 54 043,647 60.904 034 10 287088 14945 642 16 194 656 21654 S15 24 063 946 33.974.523 20.247 112 15 $15 156 16 a3 420 17 4B 288 16 G68 426 20 942 675 23 122 406 75 $29 he °TRB Tha Eg?AMR AR 980.45 711140576 108 680 180 VERO GGA 1S 444 20%1%$35 962 Major Assumptions Distribution System Major Assumptions -Distribution Systom. Mare Adraptee Rati Arnos Gata incepane 'base rates 9 AUC ay Every "hee earns Deo:Sorenents Vnated Bett Sarre Lore age Rat MLSS Eanmated Net Savage Rate Anus Rate al Crtean mo AAP oSPercentage»Ceres Derren >%,eget Marty of New Long Tee Lat years havo coed n mane:arg bbe a Average Deorecasvon Rata -tetera Average Deprecanen Rare Chenaece Average Deprecauer Rai Average O Flew -Ome:Proacocn t Faure te Porton of Lagual f rpendures Fenenced wth 7S 7 Vem of farstrcter interes!Rate on New Long.Tenn Oebt [al metverwe',net af dincounts) intemal Mate OF Line cf Cre! imevent Rate on nested Fins Targeted Distrieution TIER Leaves Targeted G&T NER Level Anise Increnee m Esamates Cost ot burtnages Pewes tom SPugect BAA Annum Grete Rane ay bw Gene hare Ane!Gren Bate om ec Be gmat *om 6an Bree ane ANN parang Lapennes "oer "8: Srowie Nave ©Mecelannoys Opersing Revert whe Cert ewe Rotem toon opeeans Margene «+ DAT Petronage "epi Arocohore Aram Crargam Cottage Canes Arntabora Frot Teng Coca Aor Petro age Lape >Beceres kam Shi Anaua Paronage Cantey ©ash Became en Ceres Arua!Grows:Hane i Caner Kon Crperanny Manges. Annas:Revel Copeig Cred Reuremens os of Parcnege Capt hone ante See Bae 2 Mes herpes Shee Ome rosenie hase eve af Shae Tem segimen!nceme Bare1eve'of Sheet "ger fe vegtongs:aco wt Gepecne Rare per 8 Rage wee yee m6 2070 atat.307 22 2693 2031.2038 fees rates ade 722 MOUNT 1 STB AE to . Tete 2m ts. To swe stat TOs 204) y08 'oo 5 ty, +s et epee Major Assumptions G&T 25 Major Assumptions -Cost of Power: Cost of Natural Gas (S/mmBtu)-2014 $7.75 Cost of Diesel Fuel ($/mmBtu)-2014 (Basis in 2010 at $3 5Sgal Retail)$32.93 Annual Fuel Cost Escalator 100% Percentage of Project Financed with Debt 100.00% interest Rate on Debt Financing 5.50% Term of Debt Financing 25 Yrs Required Times interest Earned Ratio (TIER)on interest Expense 145 Depreciable Lite (Life of Project)30 Yis Net Salvage Value at End of Project (including land}5.00% Vartable O &M Rate -2015 (S/MWh}$41.42 ImWh Annual Vattable O&M Escalator 1.00% Annual Growin tn Energy Sales 1.50% Annual Growth tn Required Capacity Reserves 2.00 mvWwiy"r Distribution System Losses 6 50% Station Service Load 2.50% Percentage of Btu Requirement Provided by Natural Gas 99 00% Percentage of Btu Requirement Provided by Diesel Fuel 4.00% Estmated Portion of 2014 Startup Fuel Cost Recovered via Economy Sales 100% Annual Energy Provided by IPP Project a4 O awit: Annual Energy Provided by IPP Project #2 Oo kWh: Typical Net Plant Heat Rate (BtuskWh HHV)6575 BtusWh Assumed EPC Costs -in 201t 2,303,500 -in 2012 -76,150,000 -in 2012 76,150,000 -in 2014 =73,396,500 Total -January,2015 In-service Date 228,000,000ssossezca in 2026 0 -in 2027 0 -in 2028 42,690,000 Total -January,2029 In-Service Date 42 690,000 Boteeeens Assumed Owner's Costs (additive to EPC cost)10.00% Estimated Cost of Bradley Lake Power; -in 2042 0.04233 FY 2012 Budget -1n 2095 0.04492 +annual escalator 2.00%Assumed 3%.annual GAM increase CltLet by 1%reduction in annual det!sery.ce Estimated Cost of Extiina Lake Power: +n 2017 0.00525 201!Buaget «in 2015 6 00591 *annual escalator 300% Sensitivity Cases Retail Rate Projection (Base Case) Case #1:G &T Capital Investment Case #2:Long-Term Interest Rates Case #3:Cost of Generation Fuel Data Sheet 2? Overall Retail Rate Projection Sales Revenue per kWh Sold (Annualized) $0.19 forrre $0.18 $0.17 $0.16 $0.15 70.1490 4 $0.14 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Sales Revenue per kWh Soid (Annuahzed) 042911 Financial Forecast 28 %Effect 45.00% 40.00% 35.00% 30.00% 25.00% 20.00%+ 15.00% 10.00% 5.00% 0.00% °o 6 o Capital Expenditures:Cumulative Effect on Retail Rates of Changes in Cost of New Generating Plant Fee Mee ee Pa : .'oat o8 tes aes See Te wh Ai RT Sanat aancoe ey ce gem rani en a :a at ms X WA TURN Oeyes Gekiea needy,oo be ad, 2012 2013 '2014 2015 2016 2017 2018 2019 2020 -@ 10%Decrease -@-5%Decrease Base Case ($250.8 million) -we-5%Increase -#-10°.Increase 042911 Financial Forecast °o ©© Long-Term Interest Rates:Cumulative Effect on Retail Rates of %Effect _Changes in Long-Term Interest Rates 45.00% 40.00%cee 35.00%_. FE RE ew em age ogaaa* 30.00% 25.00%fF 20.00% 15.00%Ff 10.00%|--- 5.00%_._ 0.00% 2012 2013 2014 2015 2016 2017 2018 2019 2020 -@ 100 Basis Pont Decrease @ 50 Basis Point Decrease Base Case (5.50%) -*50 Basis Point Increase -*-100 Basis Point Increase 042911 Financial Forecast +°° Cost of Generation Fuel:Cumulative Effect on Retail Rates of %Effect )Changes in Cost of Natural Gas 45.00% 40.00% 35.00%- 30.00%- 25.00% 15.00%|----3 }SSa10.00%a a ! all 5.00%-cee 0.00% 2012 2013 2014 2015 2016 2017 2018 2019 2020 -e-$2.00/mcf Decrease #@ $1 00/mcf Decrease Base Case ($7.75/mcf) +«-$1.00/mcf Increase -w-$2.00/mcf Increase 042911 Financial Forecast 1 Sensitivity Cases 2011 2092 2013 2014 2015 2016 2017 2018 2019 2020 2025 2030 2038 2040OverallReta:Rate Projection panes Sales Revenue per nvm Sold iAnnue-zed Dds GIST 8 Sy CRS O16"SB4G DF ETD OGG 982 STINT has Bae *Rates are adiisted quartery ang wilt vary thecughcut me year vom tne annual average Froected cvera.'ale for uth quarter of 2ott 2%"S527 AR Case 61:Capital Expenditures Cumulative fect on Retay Rates of Charges =Cost of tw Generating Fiart 10%Decrease BET 15 ohh 15 So'8 843%25 39's 23 Sats 25 St,32 34%39 36%46 92%£3.52EMDecreaseBST"SoS 16 SP'e 1S 39%m éi 326 248i 26 76%33 Ga's 40 07%AT aT he $242".Base Case ($750 8 mitor}RED 18 98%VTS te 20 35%ZE 6874 2763%33:75%46 79%48 03%543S's increase meme Th GES,1R OH PE Pak ed 28 aH M 46%angry 48 40°,Sara.10%Increase Ln "Sab-19 Fare zl 2tte 2a EGS ZT alte 29 32%BETA 42 22"4G 148 -SE Ins, Case #2:Long-Term interest Rates Cumuaive Efet or Reta:Rates of Cnarges ini ong Term interes!Fates 100 Bass Pomt Decrease 1671 1839's 2h 064s 2a 22 25%35 994 43 51%SeeSoHassPontDecreaseAES3027%22 Ch c35t-29 43%Be 36's ah 7a BZ BateBaseCase(5 50%,ae gS"Pate 25 5B 0 27630 40 79%4B 03%S43.SO Basis Pont Increase Pre 24 1G 26 14%27 82s 29 BS%4320 Sf oN SB 2B100BassPomtincrease2400%26 ae aR 9%29 96%32 08"ah Bis S2 ryt SE IG* #03:Cost of Genezation Fuel Curmylatve Efect on Retad Rates of Changes on ¢ 42 00-™me Decrease fof Natural Gas aS 5 oes B7Bs 10 baw "399%14 9986 2c 26.53%.Mace$1 Drmct Decrease 1S GB 1 98's ways ray 19 daty ria 270%ars 46 3urBaseCase(S$?7Simcf,we gett aes 2 88 20h 28 68%27.63%33 Toy 4G 79%Saat$*O0'mef increase TOs L 2368 26 38 v8 38%Biss 33 45%40 40%ar At 82 oy32OntincreaseATS793a"Bb atts 2.46"lies 80 27%AP 3 Sa Shs tty: Cost of Power 2645 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 033 '034 035 036 2037 2038 2039 2040 ey "°°ESTIMATED BUSBAR COSTOF NEWEKLUTNA PLANT tore rer eeeesNetingtaiedEsi-mated Estimated EstimatedCapacityofEnergyReadCostofNewCostofNewCapitaiNewPranttromEkiuinaVanableFue!Cost Requred Proyected Ekiutna Power =Ektutna PowerinvesimentRW)Wartsiia Plant Interest Depreushon ORM Margins Cost (S/MIWh)($/kWh) 0 162 222 734 974 626 13,794 G00 7 Ga?AGG 7-950 $18 59 787 454 2069160 682543069 $1154 $0 11545is]142.222 726 920 246 13524 336 7 942 000 &168 1R7 $/152 355 2.028.650 83 811 529 $115.3 $0.11530016222273904595313.239,841 7942 009 8 383 366 53 952 463 1985 976 85 103 646 $118.2 $0.11515i)162 222 751 351.727 12 939 698 7942 G00 8 608.197 54 968.668 1.940955 86.419 518 $115.0 $0.19502Q162222763&43 003 127 623 048 7942 O50 &638 822 $6 461 BB?3892 457 87 759 21a $114.9 $0.1148901E2222776§21 648 12 28E 962 7 9462 005 G O75 388 £7 G72 069 4,843 347 &9 122 778 $1148 $0 1947741A?222 FBS AGH 479 VAAAK Sap 7 9ap O05 OA 047 BG EDD St 1790 461 GO 610 222 $114.7 $0.11466is)162 222 BAZ 462 330 11564 718 7 Gaz O90 9 $66 $53 BtU3 147 9 734,706 $4921 $26 $1146 $0 11455 Py 162 222 BIS 710 UE "1,172,448 7.942 95%G B22 265 62 744961 1675 B67 93 356 636 $1144 $0 11445ie){62 222 B29 365 767 1 7§8 595 7 G42 O00 TORS 144 64 416,532 V613 7BY $4 615.466 $it4a $011438 i 162 232 842 B25 2638 10,324,983 "942 009 10 352 758 66 132 825 1 $48 258 96 297 864 $114.3 $0.11426ie)162 222 656 GAR 647 G BE1 ISG 7 Gal 308 16 626 278 67 692 839 1479,204 97 B03 671 $114.2 $0.11416a162222876753.977 375400 7942 509 10.916 879 69 698 667 1405 310 99 432 655 $114.4 $0.114080162222895O423°77 §B62 713 7942 900 14200 730 71 S549 683 1.329407 100 884 543 $114.0 $0.113994695%GOD 178 163 899 539 S12 16,904 $73 9429 045 11,498 046 73448 854 3635686 106916 194 $118.9 $0.11686ie}178 103 Gt4 262 047 10 263 449 9429 45 TT KOZ 9R4 75 396,786 1842537)108 454 772 $118.6 $0,11863 4 178 I04 God 187 854 9 628.165 4,429 025 TP 304 716 1444224 730011 BAG $118.4 $0 11A40oi178003GAd346Te#936 B36 4 Ald 035 PG BAA GN *,340,525 771 586 849 $118.2 $0.11816 1 178 163 BEG 242 O19 &207 467 9,429 038 fk MAS APO VLQIV12R TVG TR APG $117.9 $0.11793f)47B AOR O78 4G G07 7 ash 023 9 429 035 15 503 018 83704 326 4.995.703 0 114,787,105 S1i77 $0 114769 i VTA TGS 4S 2ut 185 6 626 23B Ale Dee 13 44040n BES 244 993936 1641057 $117.4 $0.91744Pe}178 303 307 260 17 4 765 BOR 9.429045 V5 604 1548 RANTES R65.471 0 178 048 245 $117.2 $0,81749 %178 103 1023 620 525 4 866.269 9.429 635 14,168 778 90 505 508 729940 319.698.928 $116.9 $0.11694 6 478 103 1040 195 833 3913038 9 429 035 14 543 577 G2 490 756 §86956 121,361,361 $116.7 $0.11667qa178.103 1.087 019 771 2.907 486 9,429 G35 44924 537 95 337 OBS 436107 123034 144 $116.4 $0.11640i)178.183 1.074 S56 067 ¥B46 450 9.429 635 38 317 301 97 846 041 276.961 124,715 749 $1161 $0.11611 eeercere'*ESTIMATED COST OF EXISTING HYDRO RESOURCES **+77 o et? Estimated Cost of New Estimated Projected Estimated Projected Totai Cost BlendedEklutnaPowerGradieyLakeBradleyLakeCostoftaluinaHydroEktutnaHydroCostofofPowerCostofPowor (S/kWh}Energy Rate Bradiay Lake Energy Rate Ekiutna Hydro (All Sources)(Alt Sources) 2015 $0.11545 $4 400.006 $0.04492 2,443,699 27 000,000 $0.00591 189,544 85,146,309 $0.10692 2016 $0.14530 54 400 000 $0.04582 2,492,573 27 000 000 $0.00609 164,327 86,468,429 $0.10697 2017 $0,114515 54 400 000 $0.04674 2.542.424 27 060,000 $0.00627 169,257 87,815,328 $0.10703 2078 $0.11502 5$4.400,000 $0.04767 2,593,273 27.000 000 $0.00646 174,335 88,187,425 $0.10710 2019 $0,11489 $4 406.000 $0.04862 2,645,138 27 000,006 $0,0066S 179,585 90,$83,917 $0.10717 2020 $0.14477 $4,400,000 $0.04960 2,698,041 27 000 Coo $0 0068s 184,952 92,005,770 $0.10726 2021 $0.11466 54 400.000 $0.05059 2,752,002 2?G00 600 $0.00706 190.500 93,482,723 $0.10732 2022 $0.11455 54 400,900 $0.05160 2,807 042 27 000 000 $0.00727 196,215 94,824,783 $0.10740 2023 $0.11445 54 400 000 $0.05263 2,663,183 £7 900,000 $0.00749 202,102 96,421,924 $0.10748 2024 $0.41435 $4 400.000 $0.05368 2,920,446 27,000 000 $0.00771 208 165 97,944,071 30.10756 2025 $0.11426 5§4,400.000 $0.05476 2,978,855 27,000,006 $0.00794 214,440 99,491,129 $0.10765 2026 $0.14416 $4 400,000 $0.05585 3,038,432 27 000.000 $0.00818 220,842 101,062,945 $0.10773 2027 $0.11408 $4 400 000 $6.05697 3,099,201 27 000,000 $0.00842 227,467 102,659.326 $0.10782 2028 $0.11399 54,400,000 $0.058+4 3.161,185 27 000 666 $0.00868 234,291 104,280,019 $0.10790 2029 $0.11886 $4 400.000 $0.05927 3,224,409 27,006 00¢$0.00894 241,320 416,381,923 $0.14253 2030 $0.11863 54,400,000 $0.06046 3.288.897 27 000 000 $0.00921 248,559 911,992,229 $0.11248 2031 $0.11840 54 400.000 $0.06167 3,354,675 27,000,000 $0,00948 256,016 113,622,580 $0.11243 2032 $0.41816 $4 450,006 $0.06290 3,421,768 27 0G0 060 $0.00977 263,697 416,272,314 $0.11238 2033 $0.11793 §4 400 00C $0.06616 3,490,204 27,000 000 $0.01006 271,608 116,940,687 $0.11232 2034 $0.11769 54 400,006 $0.06S44 3,560,008 27 006 GOO $0.01036 279.756 118,826,869 $0.14226 2035 $0.11744 $4 490 000 $0.06675 3,634,208 27 909 903 $0.01067 288,149 120,329.936 $0.11219 2036 $0.11719 54 400 000 $0.06809 3,703,832 22.800 08 $0.01099 296,793 122,048,866 $0.14241 2037 $0.11654 54 406 000 $0.06945 3.777.909 27 000 G00 $0.01132 305,697 123,782,$33 $0.11202 2038 $0 14667 54 400 000 $0.07086 3,853,467 27,004 G00 $0.07166 314,868 125.$29,696 $0,14192 2039 $0.11640 54 400 000 $0.07225 3.930.536 27 90D 000 $001201 324,314 127,288,996 $0.114181 2040 $0.11641 §4 400 000 $0.67370 4,009,147 27 036 609 $0,01237 334,043 129,058,939 $0.11169 Appendix B MEA's Equity Management Plan (August,2008) Matanuska Electric Association,Inc. P.O).Aon 2929 Palmer,Alaska 99645-2929 Telephone:(907)745-3231 Fax:{907)74§-9328 :RESOLUTION NO.1854 POLICY NO.406-2 SUBJECT:EQUITY MANAGEMENT PLAN REFERENCE:POLICY NO.406-1:1/13/81 3/9/82 10/7/82:RESOLUTION NO. 1020,1/11/83,11/11/85,RESOLUTION NO.1144,12/40/85: "RESOLUTION NO.1373.6/12/90 9/15/92;7/13/93.RESOLUTION NO 1507,8/10/93;RESOLUTION NO 1693,12/13/99, RESOLUTION NO 1775,12/13/04 8/11/08 WHEREAS,Matanuska Electric Association.Inc ,is an electric cooperative organized under the Alaska Electric and Telephone Cooperative Act;and WHEREAS,the Association's bylaws provide that in the furnishing of electric energy the Association's operation shall be so conducted that all patrons will through their patronage furnish capital for the Association and WHEREAS,the Association's bylaws authorize the Board of Directors to retire patrons'capital credits to the extent this 1s possible wifhout impa:ring the Association's financial condition,and WHEREAS.pursuant to the Association's mortgage with the National Rural Utilities Cooperative Finance Corporation (CFC),the Board of Directors is obligated to manage the financial affairs of the Association tn such a manner that certain minimum financial performance criteria are met,and WHEREAS,the Association's Board of directors is committed to preserving and retiring on a timely basis the capital contributed by past and current members, as well as meeting its contractual obligations concerning financial peformance'and WHEREAS.the Association's Board of Directors desires to facilitate the decision-making process concerning future rate adjustments by developing a preplanned response to changes in financial circumstances,and providing for consistency in filing for rate adjustments;and WHEREAS.the Association's Board of Directors initially adapted an Equity Management Plan (Plan)on January 11,1983,with the objectives of achieving and maintaining full compliance with the financial performance criteria contained in the Association's mortgage,improving the Association's equity level,and providing for the timely and meaningful retirement of patrons capital credits,and WHEREAS.the Association's Board of Directors adopted revised Plans as of December 10 1985,June 12,1990,August 10,1993.December 13,1999.affmed the December 13.1999 Plan on December 13,2004:and RESOLUTION NO 1854,POLICY NO 406-2 EQUITY MANAGE MENT PLAN PAGE Z@ WHEREAS,a comprehensive review of the Equity Management Plan was presented by the General Manager and his staff to the Board of Directors ata workshop held on June 9,2008; NOW THEREFORE BE IT RESOLVED,that the Board of Directors of Matanuska Electric Association,Inc..hereby adopts the revised Equity Management Plan dated August 11,2008,which includes an equity range of 40-50 percent and targets an equity level of 43 percent by 2011 a TIER for rate-setting purposes of 2 00 as approved by the RCA,and continuation of the percentage and FIFO methods for retiring capital credits. BE IT FURTHER RESOLVED,that the Board of Directors of Matanuska Electric Association,inc.,remains committed to maintaining electric revenues at levels adequateto achieve the goals set forth in the Equity Management Plan BE IT FURTHER RESOLVED,that the General Manager be assigned responsibility for monitoring the Association's financial performance for compliance with the Plan.advising the Board of Directors as needed of the Association's progress toward achieving the goals set forth in the Plan,and for recommending such revisions to the Plan as he may deem appropriate. PASSED AND APPROVED,by the Board of Directors of Matanuska Electric Association.Inc.,this 11”day of August 2008 ELSIE ELOIS”LESTER,PRESIDENT MATANUSKA ELECTRIC ASSOCIATION,INC (SEAL) ATTEST. PETER HOBURCHELL,SECRETARY-TREASURER MATANUSKA ELECTRIC ASSOCIATION.INC gdechstatf OMS CERIO E Heather duterne)OATES MERE City MALO a eg tes lutte MATANUSKA ELECTRIC ASSOCIATION,INC. Palmer,Alaska EQUITY MANAGEMENT PLAN Revised August 11,2008 MATANUSKA ELECTRIC ASSOCIATION,INC. Palmer,Alaska EQUITY MANAGEMENT PLAN Revised August 11,2008 PURPOSE The purpose of Matanuska Electric Association.Inc.'s (MEA)Equity Management Plan (EMP)is to establish a long-term course of action on how to achieve its key financial goals.facilitate the Association's decision making process,and ensure consistency in determining future rate adjustments.The EMP is a statement of the Board of Directors of MEA policy which addresses MEA's responsibilities to both its creditors and its past present and future owner/members. SUMMARY The EMP is a tool used to help balance MEA's goals cf providing low cost,reliable service while maintaining financial strength and stability The interit of the EMP ts to be rigid enough to serve as a framework for future planning and ratemaking decisions,while being flexible enough to allow the Association to meet ever changing conditions The parameters incorporated into past EMPs and this revised EMP apply only to the Matanuska Division MEA's Unalakleet Division is immaterial to MEA's capitalization structure,and was not considered in the past or present updates to the EMPs.The parameters incorporated into this revised EMP apply to the Matanuska Division's distribution system,and not,for example potential future generation projects. The specific goals of MEA's updated Equity Management Plan are as follows Continue with an equity range of forty to fifty percent (40-50%);Targeting an equity level of forty-three percent (43%)by year-end 2011. Continue as a participant in the quarterly Simplified Rate Filing (SRF)program, authorized under3 AAC 48 700 -3 AAC 48 790 Continue with a maximum ratemaking Times Interest Earned Ratio (TIER)of 2.00 for quarterly Simplified Rate Filings. Continue with an annual capital credit retirements range of approximately one to four percent (1-4%)of equity balance;Targeting annual capital credit retirements of approximately one percent (1%}of equity balance. These goals will allow MEA to strengthen equity and operate with stability within its current equity range,continue ta manage tts ratemaking TIER using the 2.00 level,and provide for relatively consistent annual capital credit retirements.The intent of these goals,as stated or as modified in response to changed circumstances.1s to guide MEAs financial management on a stable course for the next five years ho BACKGROUND MEAs original Equity Management Plan was adopted on January 11,1983,and the most recent Equity Management Plan was revised effective December 13,1999.The 1999 EMP provided for a targeted equity level in the 40 to 50 percent range,a TIER of 2.00,and capita!credit retirements of approximately 1 to 4 percent of equity annually.The 1999 EMP was reviewed in 2004,with the result being no change in key components.This 2008 EMP update also results in no change in the key components.but results in refocusing within the target ranges to facilitate strengthening equity levels in response to the rapid growth being experienced by MEA. A table comparing the key components of the 1999 plan to the updated 2008 plan is shown below: Former Plan Updated Plan Component (Revised 1999)(Revised 2008) Equity Level Range 40 -50%40 -50% (Target 43%by 2011) Ratemaking TIER 2 00 2.00 Capital Credit Rotation Percent Range 1-4%1-4% (Target 1%) Key €vents leading up to the 1999 and current Equity Management Plans are discussed below. The Association refinanced out of the federal government's Rural Utilities System (RUS)program in 1994 and 1995,at a substantial discount.All of MEA's long-term debt is currently held by National Rural Utilities Cooperative Finance Corporation (CFC). Another development was MEA's 1995 Cost-of-Service Study,which resulted in new allocations of costs between customer classes.and the adoption of the 2.00 TIER.On May 28,1999 in Order No.5 of Docket U-95-46 (Order 5),the Alaska Public Utilities Commission (currently and hereinafter referred to as the "Regulatory Commission of Alaska”(RCA))approved MEA's 1995 Cost-of-Service Study and Rate Filing (1995 COSS),and authorized a 2.00 TIER for ratemaking Order 5 also required MEA to file a Revenue Requirement Study verifying the revenue requirement determined in the 1995 COSS was still appropriate.In addition,Order 5 directed MEA to update its Equity Management Plan and file it with the RCA by December 31,1999. The Revenue Requirement Study,venfying the revenue requirement and 2.00 TIER determined inthe 1995 COSS were still appropriate,was approved by the Board on October 11,1999.filed with the RCA on October 28,1999:and became the subject of Docket U99-130.Docket U9S- 130 was closed by Order No.14 on January 30,2003,with no change in MEA's authorized 2 00 TIER level.The updated Equity Management Plan was adopted by the Board on December 13 1999 and filed with the Commission on December 28,1999 The most significant recent development impacting MEA's Equity Management Plan has been the rapid growth in MEA's service area.For many years MEA grew rapidly as Eagle River and Mat-Su Valley subdivisions filled in Much of this growth was accommodated by simply hooking at) up new customers to infrastructure built in the 1980's.which was generally accomplished without substantial capital costs.More recently growth accelerated and has required more significant investments in line extensions,subdivisions,and system improvement projects.This has resulted in MEA's assets growing mare rapidly than its equity,and hence declining equity levels. In recognition of these changing conditions and the need to review the EMP,the Finance Committee of the Board of Directors conducted an Equity Management Plan Review on April 30, 2008.The Finance Committee's review resulted in a recommendation that the Board consider strengthening MEA's equity levels to increase flexibility,sustain growth and help prepare for future capitalization needs.The Committee directed staff to prepare scenarios and policy recommendations to provide for increased equity levels for discussion with the Board.The Board conducted an Equity Management Plan Workshop (Workshop)on June 9.2008.This Revised Equity Management Plan reflects the consensus reached by the Board after reviewing various scenarios at the Workshop In summary,the Board concluded the key parameters in the existing EMP are appropriate,but some changes should be made to strengthen equity levels,in the near term,within the existing target range.The Board chose a balanced approach so that more moderate changes can be made and whereby the impact of these changes is spread amongst current ratepayers,former ratepayers,and fulure ratepayers.These changes,discussed in detail below,include setting rates at approximately the 2 00 TIER level,targeting capital credit retirements at 1 percent (1%), and reducing new service investment. KEY ASSUMPTIONS 2.00 TIER Recent projections reviewed at the Workshop (projections)showed that the currently authorized ratemaking TIER of 2.00 generates margins sufficient to accommodate estimated growth in capitalization,while enabling strengthening of equity levels,assuming carital credit retirements of around 1 percent and reductions in new service investment.The 2.00 TIER levet is MEA's currently authorized TIER,and was formally approved by the RCA in 1999 Continuation of the 2.00 ratemaking TIER Is a fundamental component of this EMP. MEA has generally been setting rates and achieving TIER's well below its authorized TIER ceiling of 200.The consensus reached al the Workshop is that MEA should begin setting rates at approximately the 2.00 TIER ceiling on a quarterly basis.Through this mechanism current and future ratepayers will contribute to strengthening equity levels. The 2.00 TIER level incorporated into this revised EMP applies only to the Matanuska Division, which ts a participant in the RCA's SRF program.MEA's Unalakleet Division is not an SRF participant,is immaterial to MEA's capitalization structure,and was not considered in these plans. Capital Requirements MEAs total capitalization growth rates were low enough through the late 1980's and 1990's that capital requirements were generally met by cash generated from providing service.MEA was able to pass on rate reductions to its members,without impairing its ability to cover capital outlays and without greatly increasing borrowing. Regarding this fairly flat growth in capitalization,tne previous EMP noted that certain portions of MEA's distribution system were underutilized at that time,and had been able to absorb a fair amount of growth in customers and energy sales without significant new capital investment.as Mat-Su Valley and Eagle River subdivisions filled in Through the late 1990's and early 2000's,MEA's growth in capitalization accelerated,reaching approximately 7 percent in 2004 through 2006,a primary reason for this update to the EMP. Activity in 2007 and current conditions in 2008 indicate a slowing of this expansion Accordingly. it appears appropriate to plan for continued,but more moderate growth. From 2002 to 2006 MEA's annual energy sales and customer growth rates averaged around 5 percent.Growth slowed in 2007,with energy sales essentially flat,while the number of customers increased less than 3 percent.Current projections show MEAs annual growth in energy requirement to average 2 to 3 percent over the next five years.Much of this increase will continue to be absorbed by existing infrastructure.including that built since 2000.At the same time,ongoing construction of a larger retail presence in the Mat-Su Valley,line extensions to outlying areas of the Mat-Su Valley,and projects like the proposed Pt McKenzie prison,will require capital outlays. MEA\s practice of offering a construction allowance to prospective new members,the CAP Allowance,resulted in MEA contributing up to $5.000 toward the construction of new services in the past.The CAP Allowance methodology was revised in 2006,resulting in a reduced CAP Allowance of $2,500 in 2006 and 2007,and $3,000 in 2008.A review of 2007 new service construction activity showed an estimated average CAP cost per job of approximately $2,200. The tentative conclusian reached at the Workshop and in follow-up discussions was that MEA should reduce its average investment in new services during the forecast period to approximately $1.000.Through this mechanism the majonty of new services will continue to benefit from MEA investment,but reductions in cost will contribute to strengthening equity levels,by reducing capital required for providing service to these future ratepayers. For all of the above reasons.planning for average annual growth in total capitalization in the 2 to 3 percent range for the next five years is reasonable.The assumption is that growth will be higher in the early portion of the plan period,dechning to approximately 2 percent per year by 2013 DEBT FINANCING AND LENDERS'REQUIREMENTS Funding Availability Because of MEA's strong equily position,low cost of debt and potential for growth,it continues to enjoy a high credif rating with access to some of the lowest cost debt available.MEA qualifies for the maximum discounts offered by the National Rural Utilities Cooperative Finance Corporation (CFC)for fixed rate Joans,currently 0.50 percent from published rates AS an example,in March of 1999 MEA was readily authonzed for a $75 million long-term credit facility from CFC,which expires March 15,2009 These funds are available for any authorized corporate purpose This financing commitment has $15 million remaining available to be drawn MEA is presently working with CFC on a successor credit facility to satisly the Association's tong- term debt requirements associated with distribution system construction and other routine business activities for the next five years. Because interest on tong-term debt is a major component of rates,MEA keeps its interest rates as low as possible,and also makes sure its fulure deb!service obligations are reasonably balanced over the life of physical plant.This ensures the Association is being fair ta future as well as current members. MEA has also provided for its short-term credit needs by securing a $10 million perpetual tine of credit with CFC This line of credit is used as a bridge between long-term draws and to supplement cash flow as needed. Financial Covenants | MEA's most significant financial covenant.which applies to its long-term debt with CFC.1s measured by an average modified Debt Service Coverage (DSC)ratio.The DSC ratio is calculated by dividing the sum of annual margins,long-term interest expense,depreciation, interest income and G&T/other capital credits accrued,by annual debt service (principal and interest payments).MEA must maintain an average DSC of 1.35 based cn the best two of the last three years This has not been a problem in the past.nor is it expected to be a problem in the future.MEA has,in fact,achieved DSC ratios in excess of 1.35 in each of the past three years.The CFC mortgage does not have a TIER covenant,a criteria that was part of the RUS system 1994/1995 RUS Refinancing In an intial transaction in December 1994 and in a final transaction in March 1995,MEA elected to leave the federal government's Rural Utilities System (RUS)program by refinancing all of its long-term debt with the National Rural Utilities Cooperative Finance Corporation (CFC)RUS offered a substantial discount as an incentive The discount from the December 1994 refinancing was $5,491,056 and the discount from the March 1995 refinancing was $5,240,788 Offsetting these savings were RUS refinancing costs of $215,647.so the net beneficial amount ('discount”)of the refinancing was $10,516,197 This $10,516,197 discount is being returned to members through rates,by reducing the annualized long-term interest expense in MEA's quarterly SRF filings.The discount 1s being distributed over a seventeen year period of declining amortization ending in 2010,in accordance with the amortization periods of the long-term CFC debt taken out at refinancing.For example, the amount of the discount amortization allocated to 2007 was $290,884,and will be $193,721 for 2008 REGULATORY CONSIDERATIONS Simplified Rate Filing (SRF)Procedures MEA intends to continue as a participant in the Commission's SRF program through the plan period.The SRF procedures were orginally adopted by MEA in January 1987 The SRF process allows flexibility and timely response by changing rates in accordance with changing operating and financial Conditions.MEA ts able to make a series of small corrections rather than 6 infrequent,step-function changes.Currently MEA is cperating within its authorized TIER ceiling of 2 00.as approved by the Commission in the 1995 COSS. The SRF filings are essentially a quarterly recalculation of MEA's revenue requirement based on the latest twelve month test period Actual cost of service is adjusted for normalized amounts such as non-recurring items,annualized interest expense,and the RUS refinancing discount amorlization described above.Test period billing units are re-priced at current rates, revenue and power costs associated with MEA's wholesale power cost flow-through are removed.The wholesale power cost flow-through adjustments are handled through separate quarterly filings. POWER SUPPLY CONSIDERATIONS Wholesale Power Supply MEA continues to be an all-requirements customer of Chugach Electric Association,Inc.(CEA), and as such obtains virtually all of its energy from CEA.The relationship is governed by the terms of the Tripartite Agreement.This agreement remains in effect through the year 2014, beyond the five year scope of this revised EMP. MEA's strength and commitment to purchase what amounts to about 27 or 28 percent of CEA's wholesale energy production,benefits CEA in two key ways.First,MEA's wholesale rates include a margin component,contributing to CEA equity at the wholesale level.Second.by MEA's contract to purchase all of its energy requirements through 2014,MEA provides a relatively Secure stream of revenue to CEA over the near term.This relatively secure stream of revenue is a positive factor in CEA's near-term credit profile. Power Supplier Capital Credits MEA has approximately $9 million in unretired capital credits accumulated at CEA through 2004. A preliminary allocation of annual G&T margins for the years 2005 through 2007 has been received from CEA and was being reviewed by MEA's outside advisers as this revision was being prepared.CEA has an obligation under a 1996 settlement agreement to retire capital credits from 1997,1998,and 1999 on a ten year cycle.MEA has received payment for the 1997 capital credits covered by the settlement agreement. CEA has stated that except for the 1997,1998 and 1999 payments required under the settlement agreement,they are discontinuing retirement of G&T capital credits to wholesale customers until ther equity level from G&T activily nses significantly. EXTERNAL FACTORS The key external factors for the next five years will likely result from the ongoing discussions about coordination or consolidation of existing and future G&T assets in the Railbelt.to harvest efficiencies and level the playing field in wholesale power supply.Other areas include potential energy.environmental and other legislative impacts to the utility industry.These factors will primarily impact future power supply and transmission activities throughout the Railbelt.While the ullimate outcome and effects,if any,on MEA's distribution system cannot be quantified at this time,MEA is attempting in this revision to position itself with the strength and flexibility to deal with future developments OTHER CONSIDERATIONS Use of Debt vs.Equity As stated above a primary focus of this EMP update is strengthening MEA's equity level within the current targeted range,striking a healthy balance between debt and equity financing.The result of discussions at the Workshop ts a targeted equity level of at least 43 percent by the end of 2011.At June 30,2008 MEA's equity level was approximately 39 8 percent.There are tradeoffs in the use of debt and equity,and MEA's plan balances the benefits of using both components. Equity in a cooperative ts contributed by the members,primarily through membership fees and the accumulation of margins as patronage capital.The higher the equity level,the more assets the members have invested tn the cooperative:funds for-which they are not paid interest However,in using some level of equity to finance its activities,MEA avoids the payment of interest to others,and lowers both its financial risk and the level of revenues necessary to meet financial covenants,and consequenily the rates tt charges. The use of debt financing causes the Association to pay interest to others.However,carrying a limited amount of debt.which preserves the ability to quickly borrow funds as needed,allows MEA to readily respond to its financial needs.Another advantage of debt financing !s that costs are spread over the useful lives of the underlying assets. Determining an optimal debt vs.equity level ts a matter of balancing the variables to achieve the desired result Because MEA currently seeks to achieve a higher equity level,the goal is increased margins and reduced capital needs by reducing MEA investment,and consequently incurring relatively less debt.Conversely,to maintain the current equity level,MEA would continue to operate below its TIER ceiling and grow through proportional increase in both debt and equity To reduce equity levels,MEA would lower rates,and incur relatively greater debt. As noted at the Workshop,the median equity level reported by MEA's peer group of CFC borrower systems for 2006 was 42 01 percent With this revision,the Board sets a target for MEA's equity level to reach at least 43 percent by 2011 The steps taken to strengthen MEA's equity levels have been discussed above MEA also seeks to maximize the number of interest rate discounts offered by CFC.By maintaining an equity level of 40 percent or greater,measured at December 31"'each year,MEA will continue to qualify for all four discounts,which tolal 0.50 percent. MEA considers its current equity vs debt levels level to be healthy but at the low end of the appropriate range.For the plan period,MEA expects to increase equity within the range of 40 to 50 percent.adjusting rates using the 2 00 TIER ceiling,and grow with proportionally greater increases tn equity than debt Relationship of TIER to Rates and Margins The TIER established in this EMP will directly affect the rates members pay.TIER ts the margin component of rates,expressed as a multiple of long-term interest expense.Higher TIER,or higher margins,means higher rates Of course.years later the members receive these margins back as capital credits,but without interest. By adjusting rates quarterly to the TIER ceiling.instead of operating below the authorized TIER ceiling yields higher margins,and higher rates These steps are necessary to strengthen equity and preserve MEA's ability to sustain growth.Lower rates enable the membership to keep more of their money in their own pocket today,yet would result in lower equity levels. Note that a given TIER will not always generate the same amount of margins,because TIER is a multiple of long-term interest expense.If the TIER multiplier is held constant,an increase (or decrease)in test period long-term interest expense wili result in increased (or decreased) margins Unclaimed Capital Credits For a variety of reasons,MEA will never be able to locate all of the members who should have received capital credits checks.These unclaimed capital credits revert to MEA and end up as donated capital Consequently,these unclaimed capital credits contribute to equity stability without affecting rates.This capital can be used for any legitimate corporate purpose,including retained equity.For example,in the early and mid-1990's MEA used these monies to endow a scholarship fund which is used to make annual scholarship awards to qualifying members or their children.Currently,unclaimed capital credits are being retained,contributing to equity stability without affecting rates. COMPONENTS OF THE PLAN Future Rate of Growth in Capitalization Future growth in capitalization can be difficult to predict for extended periods As described above,an average annual growth rate in the 2 to 3 percent range is a reasonable expectation for the five year plan period.The assumption ts that growth will be faster in the early portion of the plan period,and declines to approximately 2 percent by 2013.Since MEA intends to increase its equity level while funding this growth in capitalization,equity levels must grow at a faster rate than debt.The forecasts incorporated into this updated EMP reflect equity levels increasing to approximately the 43 percent range by 2011 and to more than 47 percent by 2013 Future Cost of Debt Future cost of debt is also difficult to predict for extended periods.Currently,market rates are in the 5 to 7 percent range,depending on whether variable rate or fixed,and if fixed,the terms. National and international events can change that quickly.MEA has stabilized its future debt costs by carrying all of its long-term debt at fixed interest rates;staggering both the maturities and repricing penods,if applicable,and maximizing interest rate discounts from CFC.Should the opportunity to take advantage of extremely favorable rates present itself,itis possible MEA may finance some of its long-term debt at variable rates as done in the past.Such variable debt can be converted to fixed rate debt without penalty at any time reducing exposure to escalating interest rates MEAs current blended cost of debt for 2008 ts approximately 5.7 percent (before amortization of the REA discount)A review of current long-term rates and forecasts indicated rates into the 7 9 percent range are likely for new long-term debt taken in the plan period MEA expects to continue to qualify for the maximum discounts offered by CFC,reducing the future cost of new debt to approximately 6.5 percent.Using these assumptions,a future blended cost of debt of approximately 6 percent (before amortization of the REA discount)is expected for the five year plan period Capital Credit Rotation Method and Period MEA continues to use a combination of the percentage and FIFO methods for retirement of capital credits.This method results in application of funds to the oldest year of patronage still on the books,with all members sharing in any excess amount retired each year.The Board of Directors determines the appropriate percentage of equity to retire each year.The general retirement process is more fully descnbed in Policy No.406-1,MEA Capital Credits. MEA's updated EMP contemplates annual retirements of 1 percent of equity as of the previous December 31 for the Matanuska Division For many years MEA was able to maintain the twentieth year as the FIFO year because prior to the mid-1980s,margins were fairly modest,and resulting patronage balances relatively small Starling in 1985,the Association began realizing net margins that exceeded the amount of capital credits historically retired each year.The Board reviewed this situation,the so-called patronage capita!"bubble”that began in the mid-1980's in the 2004 Equity Management Plan Review.In response,the Board decided to continue retirements at historic levels of about 2 percent of patronage capital and allow the 20 year retirement cycle to slip Currently,the oldest year presently on the books 1s 1986,effectively resulting in 23+year retirement cycle. Retirements atthe 1 percent level will result in a further lengthening of the retirement cycle. Should excess equity levels accumulate in the future,one option for their use would be to increase retirements.potentially shonening the retirement cycle. Continuing past practice,as part of the annual retirements the Association will minimize administrative costs by applying any payments of $25 or less to the respective energy accounts rather than issuing checks.The Association does not process checks for capital credit payments of less than $1.00 per account The administrative costs do not justify the processing of these immaterial amounts,which will be transferred to donated capital.The Association will resume the practice of retiring all inactive account balances of less than $75 in full al the point capital credit retirements are sufficient to retire the 20th FIFO year in full and an excess percentage Is being paid to all accounts. Debt vs.Equity Level The 1999 EMP adopted an equity level range of 40 to 50 percent.In 1999 MEA had an equity level of approximately 48 percent at year-end.In 2007 MEA had an equity level of approximately 40 percent at year-end This updated EMP reflects a shift in facus from a plan whose goal was maintaining equity,to a plan that will strengthen equity within the target range This is also consistent with setting rates at approximately the 2.00 maximum TIER level This updated EMP maintains the equity target range of 40 to 50 percent.A broad range enabies the Association to respond to potential challenges with greater flexibility. TIER Objectives The previous EMP established a ratemaking TIER objective of 2.00.This updated EMP concurs that the ratemaking TIER is the appropriate target to use.Aratemaking TIER objective is preferable to other measures because it lends consistency to the rate setting process In the years since the Commission authcrized a 2.00 TIER for ratemaking.MEA has been setting its rates using the 2.00 TIER.MEA has also been consistently achieving TIERs tn the range of 2.00 or less in its quarterly SRF filings.By adopting the ratemaking TIER of 2.00,which the Commission determined to be an appropriate level,the Association's Equity Management Plan and authorized TIER for quarterly SRF filings are consistent. Forecasts show that by consistently resetting rates to a 2.00 TIER level through the SRF program during the five year plan period,along with the other changes described above,cash flows should be sufficient to strengthen the equity levels within the target range and enable continued capital credit retirements The potential setting of a target TIER of less than 2 00 was not considered a prudent option. Ratemaking vs.Financial Statement Considerations As stated above,this updated EMP reflects the use of a 2.00 ratemaking (SRF)TIER,which lends stability to the ratemaking process.Forecasts incorporated herein,as a matter of necessity were calculated using projected financial data.Actual ratemaking test period data and normalizations can only be calculated as they occur. To get from a ratemaking (SRF)TIER to a financial statement TIER,one must incorporate other non-operating margins and capital credits allocaled to MEA by cthers.This number varies annually,but consistently pushes the financial statement TIER above the ratemaking TIER In the past,MEA has been operating slightly below its authorized maximum ratemaking TIER, achieving ratemaking TIERs in the 1.7 to 1.8 range.on average.Future periods,as contemplated in this revised EMP,will generally result in achieved ratemaking TIERs of approximately 2.00 Therefore,barring unexpected developments,the Association will seek ta achieve financtal statement TIER leveis at of above 2 00 through the five year plan period IMPLEMENTATION It will be the General Manager's responsibility to monitor MEAs financial performance with respect to the plan,and to report to the Finance Committee and Board of Directors periodically, as needed,over the course of the five year plan period on the following items: e TIER levels e Equity levels e Capital credit retrements «Recommended modifications ta the plan due to changed circumstances It is generally expected that this report will be a part of management's annual budget presentations to the Board of Directors.!t will be the Board of Directors'responsibility to consider and take action on the General Manager's report 11 %EXHIBITS 1.Projections --Scenario Components per June 9,2008 Board EMP Workshop plus additional reduction in new service investment Targeted Equity Level: argeted Tier Level: rget CC Retmnt %: Projected Growth: 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 .New Svc.Invest: $2,200 51.500 $1,000 £0 __43.00%_2.00 1.00% 3.10% Cap Cr 3.00% 3.00% 2.50%° 2.50% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% *9.New Sve.Invest:[$1,000 _| Note.Input either $2,200,$1.500.$1.000 or $0} Savings _ 2.00% 30 31,000.000 31,800.000 |$3.600.000| New Svc.Capital Net Cap Cr Retmnts ProjectedSavingsGrowthMarginsRetmnts%ofEquity Equity % Q 6,537,480 4,348,796 (1,5€0,000)1 80%39.70% (1,800,000)4,725.000 6.014.170 (863,564)1.00%41.18% (1,800,000)4.866 750 6,298,725 (915,070)100%42.67% (1,800,000)3.877.294 6,323,745 (968.907)1.06%44.27% (1,800,000)3,974,226 6,312,297 (1,022,455)1.00%45.77% (1,800,000)286 665 6,315,486 (1,075,354)100%47.42% (1,800,000)2,956 843 6.190690 (1,127,755)100%48.94% (1,800,006)3.015 980 6,143,001 (1,178,384)1.00%50.37% (1.800.000)3.076.259 6,049 164 (1,228 030)1.00%$1.69% (1,800,000)3.137.825 5.890.350 (1,276.242)100%52.89% (1,800,600)2200 582 5.882.209 =(1.322.383)100%54.02% (1,800,000)3,264,593 5,531,044 (1,367,981)100%54.96% (1,800,000)3.329.885 5.576.019 (1.409.612)1 00%55.86% (1,800 000)3,396,483 5,420,631 (1.451276)1.00%56.64% (1,800,000)3464412 5,287 874 (1,490,969)1 00%57.33% {1,800,000)3.533.701 5.040.506 (1.528.938)100%57.88% (1,800,000)3.604 375 4.963.753 (1,564,054)100%58.36% (1.800.000)3676,462 4,807,355 (1.598.051)100%58.74% Component Placeholders: Targeted Equity Level:43.00% Targeted Tier Level:Fiz =<2.005289TargetCCRetmnt%o:[v4-01,005%%<4 Year Target Reached:e2201ALesAvg.New Svc.Invest:Fi $4,0003.23! yocBbnug STATE OF ALASKA THE REGULATORY COMMISISON OF ALASKA Before Commissioners:T.W.Patch,Chairman Kate Giard Paul F.Lisankie Robert M.Pickett Janis W.Wilson In the Matter of the Evaluation of Matanuska )I-11-5 Electric Association,Inc.'s Power Requirements _) ) _CHUGACH ELECTRIC ASSSOCIATION,INC.'S COMPLIANCE FILING TO ORDER I-11-5(1)IN THE EVALUATION OF MATANUSKA ELECTRIC ASSOCIATION,INC.'S POWER REQUIREMENTS I,Introduction Chugach Electric Association,Inc.("Chugach”)supports the Commission's efforts to compile a written record to permit the evaluation of Matanuska Electric Association,Inc.'s ("MEA”or "Matanuska”)power supply requirements,which might include the participation of other Railbelt Generation and Transmission ("G&T”)utilities. Planning and partnership among all Railbelt utilities is needed to avoid unnecessary investment in G&T facilities,optimize the use of existing facilities and realize the benefits of joint planning,economic dispatch and economies of scale from G&T projects. Chugach appreciates the opportunity to provide the initial requested information to the Commission.However,the Commission should understand that the restricted time afforded to submit this filing under Order No.1 limits Chugach's ability to provide full and complete answers to the Commission's inquires.Chugach requests that it be permitted to supplement this filing as additional information becomes known and additional analysis is performed. Chugach will comment on its ability to meet MEA's load with existing facilities, identify the risks and benefits of using those existing G&T facilities,and highlight modifications to existing sites that could be a more cost-effective solution to building on a new site.Before addressing the details of how Chugach can continue to meet MEA's electric power needs,we will provide the Commission with a brief history of Chugach and MEA power sales discussions.Before closing,we will comment on MEA's course of action in relation to the Railbelt Integrated Resource Plan (RIRP)and provide what Chugach believes are the recommended next steps in understanding how Chugach can continue to meet MEA's needs into the future. Chugach believes it is in both Chugach and MEA's best interests to jointly work together on G&T services.Chugach has made substantial investment in G&T infrastructure,has extensive long-term experience operating,maintaining,and constructing G&T facilities,and is fit,willing and able to meet MEA's needs for the foreseeable future.Chugach continues to have the generation capacity to meet MEA's load as long as adequate investment is made for the length of time the assets are in service.By working together,we can capitalize on efficiencies and minimize cost for the long-term benefit of both Chugach and MEA members. Il.History Chugach has made ongoing efforts to continue some form of G&T service or partnership arrangement with MEA pending the expiration of the current power sales agreement.Some examples of these efforts,beginning after MEA provided initial notice to Chugach of its intent not to renew the current power sales agreement,follow: e May 12,2004 letter from MEA to Chugach -MEA gives formal written notice that it has "conclusively eliminated continuation of the all requirements relationship with CEA from further consideration”. e September 14,2004 letter from Chugach to MEA -Chugach states it is open to continuing serving MEA "whether that is through purchased power contracts, joint resource ownership or some other mutually acceptable means”. e March 27,2007 letter from Chugach to MEA -Chugach offers MEA the opportunity to participate in the planning for a new combined cycle gas plant, ultimately the Southcentral Power Plant (SPP),which is expected to provide economies of scale in addition to efficiency improvements compared to a simple cycle plant being planned by MEA. '@ April 3,2007 letter from MEA to Chugach -MEA responds to Chugach's March 27,2007 offer by stating that MEA will continue its plans to develop its own project. e May 9,2007 letter from Chugach to MEA advises Matanuska that fuel supply planning and negotiating future gas supply is critical and that Chugach will negotiate for Matanuska's needs to the extent Matanuska contracts for future service from Chugach. e August 5,2008 from Chugach and Anchorage Municipal Light and Power - Chugach and ML&P offers MEA the opportunity to participate in the SPP byaddinganadditionalgenerationunittotheproject. e September 10,2008 Chugach presentation to MEA Board.The presentationshowedMEAthebenefitsofparticipatingintheSPPprojectandcontinuingtoreceiveChugachtransmissionservice. e October 13,2008 letter from Chugach to MEA -Chugach provides an economic analysis of resource plans and elaborates on the benefits to MEA from participating in the SPP. e November 21,2008 letter from MEA to Chugach -MEA advises they will not participate in the SPP project if it includes MEA paying any wheeling charges. e September 3,2009 letter from MEA to Chugach -MEA asks Chugach whether Chugach is still open to discussion regarding power sales opportunities. e September 4,2009 letter from Chugach to MEA Chugach advises that G&T services are available to serve MEA post 2014. e February 22,2010 letter agreement -Chugach and MEA sign agreement to extend the timeline to negotiate a new power sales agreement from February 28,2010 to May 31,2010. e May 27,2010 letter agreement -Chugach and MEA further extends the deadline to negotiate a new power sales agreement to October 31,2010. e October 27,2010 letter agreement -Chugach and MEA further extends the deadline to negotiate a new power sales agreement to November 30,2010. e January 11,2011 letter of intent -Chugach responds to MEA's request for 50 MW of capacity and energy,power dispatch,transmission wheeling,and naturalgasacquisition,aggregation,storage and transportation services to augment MEA's Eklutna energy project. e¢March 29,2011 letter from Chugach to MEA -Chugach requests MEA provide a written response to the January 11,2011 proposal or provide an alternative proposal. e May 16,2011 letter from MEA to Chugach -MEA declines to accept the January 11,2011 proposal and summarizes MEA's plan to build its Eklutna power plant and plans to issue an RFP for contract services such as dispatch,peaking support and fuel supply. To wrap up the historical record,it is clear that Chugach has spent considerable time and effort in discussions,planning and analysis to provide MEA with viable options.The Commission's actions have allowed Chugach to publically state that we remain willing and able to continue to serve MEA's needs on either a transitional or long-term basis. The following responses to Commission Inquiry 1 and Commission Inquiry 2 are examples of at least two viable alternatives. Commission Inquiry No.1:Existing or Projected Generation Capacity to Provide Firm or Interruptible Electric Power to MEA Chugach can meet MEA's load requirements on a firm basis with minimal capital investment in Beluga.Chugach has made the decision to retire Beluga Unit 8,in part, because of MEA's prior notice that they do not desire to continue the all-requirements arrangement,Given adequate notice,Chugach can provide sufficient power supply.We: believe this option as well as Chugach's modification scenario does provide MEA with a viable alternative. Chart 1.Chugach Generation can Meet Joint Chugach,Seward Electric System (SES)and MEA load for a ten-year period. 5307 520 HH HHUYHHRH TE STAT HTnInmnininin 50017 i I STR RIA IAIb |G Joint Load w/30%é . .Reserves 49077 THAI OIALALAG lo Generation asoH HIHIH IKI BI HII HIHIE Capacity aoTIHinIiMiMIAAIAAInie 460 T T T r T T T 2015 2017 2019 2021 2023 We have analyzed several options and have preliminary information we can review with the Commission. Ii.Beluga Unit 6/7/8 Life Extension Chugach could meet MEA's load by extending the life of the Beluga Power Plant. Beluga Unit 8 is scheduled for retirement in 2014 and will need appropriate investment to operate reliably for any time beyond this period.A life extension could be undertaken for up to eight to ten years that would maximize the useful life of Beluga Units 6 and 7.Unit 6 is scheduled for retirement in 2020 and Unit 7 is scheduled for retirement in 2021. Beluga Unit 6/8 or 7/8 has a heat rate that is about 9,000 Btu/kWh,which is close to MEA's planned Eklutna power heat rate of 8,400 Btu/k Wh. IV.Estimated Cost To extend the life of Chugach's Beluga Unit 8 will require investments in a new control system,improvements to the air-cooled condenser and a turbine overhaul.The estimated cost of making these improvements is between $10 million and $25 million depending on the length of time the unit is operated. By operating Beluga 6/7/8 we can meet MEA's needs,but the additional variable and fixed costs over the extended life will have to be considered.Ultimately,the impact to the system will depend on the needed capital investment,changes in on-going operating and maintenance costs,the price of fuel and the length of any unplanned forced outages.Should Chugach take this approach,it would have to have some longer-term benefit to balance the additional risk.That longer-term benefit could include an extension of the power sales agreement or other G&T arrangement that could provide added benefit. Fuel Supply As the Commission is aware,fuel supply is a critical element in the decision- making process.Chugach is in an excellent position to both negotiate and deliver gas to not only Chugach and SES customers,but MEA as well.Chugach has agreements in place for gas transportation,storage and has the necessary gas purchasing and scheduling personnel on staff to efficiently provide MEA with a host of fuel supply services. Delivering gas to existing sites provides a great benefit over starting from scratch.The following chart highlights the capacity and load requirements for a combined Chugach, SES and MEA load.It identifies the capacity of each power plant for the years 2015, 2020 and 2025 and provides the summation in each period of time.The total capacity is then compared to the total load plus reserves for the same time period.This chart highlights that Chugach has the capacity to meet the combined loads for the next 10 years and provides a transition to the Watana hydroelectric project in 2025.The 2025 assumption is that Chugach would retire some Beluga generation once Watana is available. Table 1.Unit Capacities (MW)to Meet Load -Existing Units Power Plant 2015 2020 2025 Bradley CEA -Purchased Capacity 27.40 27.40 27.40 Bradley SES -Purchased Capacity .90 90 .90 Bradley MEA -Purchased Capacity 12.40 12.40 12.40 Eklutna CEA -Owned Share 12.00 12.00 12.00 Eklutna MEA -Owned Share 6.70 6.70 6.70 Cooper Lake 20.00 20.00 20.00 SPP -Owned Share 128.00 128.00 128.00 Beluga 317.00 317.00 182.00 Watana -Potential Purchase Capacity 150.00 Total Generation Capacity 524.40 524.40 539.40 Combined Load W/30%Reserves 486.20 505.70 527.80 Commission Inquiry No.2:Modifications to Current and Planned Generation to Meet MEA's Loads Over the past several years,Chugach has evaluated numerous options to meet MEA's load.The most cost-effective solution in 2008 was adding a LM6000 1x1 (one gas turbine with one steam turbine in combined cycle)unit at SPP.Chugach made the offer to MEA to include a fourth unit at SPP,but MEA chose not to participate in time to properly size the steam turbine for both the fourth unit and duct firing (auxiliary burners used to provide additional capacity over peak load). If a fourth unit is added at SPP in 2014,Chugach loses 17MW of duct firing.A better alternative may be to add a fourth LM 6000 GE unit and an additional steam turbine at the same time.A siting study would be needed to determine the best location for this unit.This provides 62 MW of efficient combined cycle generation and offers an additional 20 MW of duct firing,which matches MEA's base load.This option would provide a heat rate of about 8,000 Btu/kWh for MEA's base load for a cost of roughly $100 million,and Chugach and MEA could jointly use the Beluga Power Plant for. peaking,thereby minimizing additional capital investments. Table 2 identifies the unit capacities for the combined load of Chugach,SES and MEA.Again,the table identifies that Chugach can meet the combined loads with existing and new generation.New generation would replace existing Beluga generation. Table 2.Unit Capacities (MW)to Meet Load -Modification Scenario Generation Plant 2015 2020 2025 Bradley CEA -Purchased Capacity 27.40 27.40 27.40 Bradley SES -Purchased Capacity .90 .90 .90 Bradley MEA -Purchased Capacity 12.40 12.40 12.40 Eklutna CEA -Owned Share 12.00 12.00 12.00 Eklutna MEA -Owned Share 6.70 6.70 6.70 Cooper Lake 20.00 20.00 20.00 SPP -Owned Share 128.00 128.00 128.00 Beluga 317.00 264.00 147.00 Watana -Potential Purchased Capacity 150.00 New 1 x 1 Unit 62.00 62.00 Total Generation Capacity 524.40 533.40 566.40 Combined Load W/30%Reserves 486.20 505.70 527.80 'While the above sets forth Chugach's best current thinking about modifications which could be made to serve MEA's load,the Commission should understand that due to the tight timeframe for making this filing,Chugach has not.had the opportunity to thoroughly evaluate all options available. Vv.Alaska Energy Authority Railbelt Integrated Resource Plan (RIRP) MEA plans for new generation were mentioned in AEA's regional plan.Section 15 of the Black &Veatch study (pages 15-4 and 15-5)concludes the following: Additionally,the implementation of a regional plan will result in lower costs than if the individual Railbelt utilities continue to go forward on their own.While the scope of this study did not include the development of separate integrated resource plans for each of the six Railbelt utilities,we did complete a sensitivity analysis to show the cost impact if the utilities develop their currently proposed projects (referred to as committed units)that were selected outside of a regional planning process...In the aggregate,the cost of the Committed Unit Sensitivity Case was approximately 5.6%,or $484 million on a cumulative net present value cost basis,higher than Scenario 1A4/1B.(Base Case)! The Eklutna generation station is identified as a "committed Unit”in Table 4-8 of the Black &Veatch study.We do note that SPP is also included in the list,but Black & Veatch recommended the unit at SPP is very similar in size to the Anchorage 1 x 6FA Combined Cycle which the RIRP selected to be in commercial operation by 2013.Black &Veatch noted that the unit fits well with the RIRP and joint ownership concept (see 15- 8 and 15-10).- Both of Chugach's generation alternatives -life extending Beluga Unit 8 or adding a new LM6000 1x1 -could be built on an existing generation site such as Beluga or SPP.These sites have the benefit of existing transmission and gas transportation infrastructure.This avoids the significant construction risk and upfront capital costs of building at a new site. 'The entire Black&Veatch Report is available online at http://www.akenergyauthority.org/regionalintegratedresourceplan.html. -10- VI.Recommended Next Steps We strongly believe that bilateral agreements between parties is truly the best approach,as MEA stated in R-07-001 ,Creation of a Traditional G&T cooperative: "At the present time,all of the utilities in the Railbelt are either pursuing their own individual power supply solutions or planning to participate in limited joint power supply solutions.While this approach obviously works,certain potential economies of scale and overall efficiencies may be at risk.Individual approaches to power supply development might also result in the over/under construction of new power supply facilities by individual utilities.In either case,the affected customers of a utility could be faced with either excessive cost to be recovered through rates,or worse,the inability of their utility to adequately and reliably provide for their energy requirements.'” Chugach is willing to investigate joint G&T concepts that protect the prudent planning and business decisions that it has made and that are in place today.SPP is on budget and on schedule,financing is firmly in place and the Chugach team is fit,willing and able to share services with MEA for the benefit of both Chugach and MEA members. The Chugach Beluga Unit 8 extension alternative provides MEA power for up to 10 years.More importantly,the Beluga 8 extension alternatives allows MEA to defer between $250 million and $300 million in capital expenditures for a new power plant and ?MEA's Petition to Open Notice of Inquiry to Adopt Regulations filed August 28,2007 at page 2.Docket U-07-001. -ll- associated transmission infrastructure.Chugach can leverage its existing resources,both infrastructure and personnel,to arrive at a more cost-effective plan. Chugach recommends that Chugach and MEA file a joint power supply plan within 60 days of this filing and compare the costs of joint efforts in relation to individual utility efforts.The analysis should be based on siting studies (example attached as Exhibit 1)that identify generation infrastructure,transmission improvements,fuel supply and other necessary utility improvements.In addition the analysis must evaluate operations and maintenance costs,fucl efficiency ownership costs,and projected bus bar rates. Chugach is willing to enter into a binding process to develop a power supply plan that meets the MEA load requirement while optimizing the existing G&T resources.To expedite this effort,Chugach is willing to work jointly with MEA with either a mediator, third party consultant or both to avoid the possibility of individual utility bias. Again,Chugach appreciates the opportunity to cooperatively address MEA's power requirements. Dated this 12th day of December,2011 CHUGACH ELECTRIC ASSOCIATION,INC. or SoMa ent--T BradleyChiefEx ut eans cer -12- ety KEMPE]JHEREMANWieLETIS23 24 2o 26 27 28 ti| STATE OF ALASKA _,;"yhl0 42 heodta REGULATORY COMMISSION OF ALASKA Before Commissioners:TOW.Patch,Chairman Kate Guard Paul F.Lisankie Robert M.Pickett Janis W.Wilson Inthe Matter of the Evaluation of Matanuska )| Electric Association.Ine.'s Power Requirements)I-1}-5 | ! NOTICE OF FILING OF ML&P'S RESPONSE TO ORDER NO.E-11-5(D) The Municipality of Anchorage d/b/a Municipal Light &Power (MI&P")files the enclosed Response to Order No.[-11-5(1),as required in Ordering Paragraph No.tof that order.MLA&P will have a representative in attendance at the Commission's December 14.2011,| public mecting to discuss the information provided in its response and to answer Commission questions, RESPECTFULLY SUBMIPPTED this 12th day of December,201 LE,at Anchorage. Alaska. KEMPPEL,HUFEMAN AND ELLIS.PC.| Counsel forthe Municipality of Anchorage d ba Municipal Light &Power | Dean D.Thompson POMEAPT LTS Meadtogs t2-12 7] HEPEMANWrETEISKEMPPEL.24 28 CERITEICA TR OF SERVICE Peertify that a cops of the foregoing document Was served on the persons named below by US Mail and e-mail on the {2th day of December,2071, KEMPPEDLHUPREMAN AND ELLIS.PaBy:-/Linet?]fOte2TifaM.Vorrey.Legal Assistant an Bradley Evans CEO Chugach Electric Association.Inc. P.O.Box 196300 Anchorage,Alaska 995 19-6300 E-mail:brad_evans@ chugachelectrie.com Brian Newton President'CEO Golden Valley Electric Association,Inc. P.O.Box 71249 Fairbanks,Alaska 99707-1249 E-mail:blnewton@ gvea.com Evan J.Griffith General Manager Matanuska Electric Association,Inc. P.O.Box 2929 Palmer,Alaska 99645-2929 E-mail:joe.griffith'@ matanuska.com NOTICEOF FILING OF MLAPS RESPONSE POORDER NOOE TL Set Docket 11S December 12.2044 Page 2 of 2 IVMEAPT ET S Pleadings E212 71 ML&P's Response to Order No.1-11-5¢1) December 12.201] Introductory Comment The Municipality of Anchorage d/b/a Municipal Light &Power ("ML&P")interprets Order No. 1-1]-5(1)as seeking initial information from:ML&P and other utilities regarding their technical capability to provide firm or interruptible power to Matanuska Electric Association,Ine. ("MEA")to help meet MEA's projected requirements beginning in 201S.In that context, ML&P's responses to Order No.1-11-5(1)are set forth below to assist the Commission in this docket.However,initially identifying technical capability does not necessarily mean that ML&P would be willing to enter into an agreement to provide that level of electric capacity or energy. Whether ML&P would be willing to provide such service to MEA,and the precise quantities, service quality (firm or interruptible),rates,and duration of any such services,would depend on several factors that have not yet been adequately examined.Such factors include but are not limited to the impact on ML&P's integrated resource plan;impact on the cost,rates,and reliability of services provided to ML&P's retail customers:impact on the risk of catastrophic failure associated with increased operation of ML&P's very old generation units:availability and cost of adequate transmission facilities:cost and scheduling impacts of additional emissions permitting requirements;and federal income tax law restrictions on ML&P's ability to provide firm or long term wholesale services to a private party (MEA)using facilities that are financed with tax-exempt bond proceeds. Thus,the initial information provided below should not be construed in any way as an offer, commitment,or statement of willingness or ultimate ability to provide any specific type or quantity of electric service to MEA.Instead,the information provided below indicates an initial, order of magnitude estimate of ML&P's peak generation capacity that could,from a technical perspective,be made available to serve MEA firm or interruptible loads,based on ML&P's current and future resources,projected load,and margin requirements,and assuming that factors like those listed above can be satisfactorily resolved.In addition,the information below assumes that MEA would provide for all of the fuel supply and transportation required to generate any power provided to MEA. ML&P's initial responses to Order No.J-11-5(1)are based on the following data:Exhibit | shows ML&P's projected peak resource capacities.peak loads,and reserve requirements for 2012 through 2034,assuming ML&P's existing and projected generation resources.These data reflect the findings of ML&P's 2009 Integrated Resource Plan ("IRP"'),which includes the addition of ML&P's interest in the Southcentral Power Project ("SPP”)(55 >MW)! 'All thermal capacity amounts stated herein assume 30 degrees Fahrenheit conditions.All ML&P capacity,load,and reserve quantities herein are rounded to the nearest MW to reflect the approximate nature of the data. lof4 (January 2013).a new LM2500+G4 simple cycle generation unit (34 MW)at ML&P's Plant | (December 2013),a new LMG6000PH:/CC (or comparable unit)combined cycle generation unit (65 MW)at ML&P's Plant 2 June 2015),and retirement of MLEP's existing Units |and 2 by 2013.According to the Alaska Railbelt Regional Integrated Resource Plan Study.Final Repon (Feb.2010)(°RIRP”),MEA's 2015 peak demand,not including losses,is projected to range from 95.5 MW (Summer peak)to [57.0 MW (Winter peak).RIRP at 6 2. ML&P's responses to the two information items set forth in Order No.1-11-5(1)are as follows: i.A description by Chugach,GVEA,und ML&P of their existing or projected capacity to provide firm or interruptible electric power to MEA beginning at the expiration of MEA's wholesale power agreement with Chugach. As shown on Exhibit 1,in 2015,ML&P's total existing and projected hydroelectric and thermal resources have a combined maximum capacity of SI4 MW.ML&P's projected peak load and reserve requirements (including N-2°contingency reserve)in 2015 is 384 MW,for a difference of 130 MW.However,52 MW of ME&P's peak'capacity are from ML&P's interests in hydroelectric capacity,which cannot be relied on to provide that level of output at all times of the year and ts needed by MIL&P during the year for hydro-thermal coordination to minimize fuel costs.Excluding ML&P's hydroelectric capacity*yields 462 MW of thermal capacity (514 MW -52 MW).In addition,83 MW of the 462 MW of thermal capacity are from units that will be between 40 and 50 years old in 2015.Such units are generally unreliable for firm sales, relatively inefficient,and in some cases inadvisable to operate extensively due to balance of plant risk (the risk of damage to other plant in the event of a significant unit failure).Moreover, 192 MW of the 462 MW of thermal capacity total are from units that will be between 30 and 40 years old in 2015.Such units are generally beyond their design life,have reduced reliability,are inefficient,and may be inadvisable to operate extensively due to the balance of plant risk.As *In general.an "N-2”contingency assumes that MLA&P's two largest units are unavailable for any reason.While ML&P's normal operating standard is to provide for an N-1 contingency reserve,ML&P uses an N-2 contingency reserve for planning purposes to ensure that it can maintain an N-]contingency reserve when other units are temporarily unavailable due to scheduled and unscheduled maintenance.: >?ML&P's hydroelectric resources have an annual capacity factor of approximately 35 percent, which yields an annual average capacity of approximately 18.5 MW, *Depending en particular operating conditions and the need for hydrothermal coordination to maximize ML&P's thermal efficiency (reduce fuel costs),it would be possible for some amount of MLEP's hydroelectric capacity to be used to help meet MEA load requirements.However, ML&P has not determined the precise amounts that could be available for MEA peak and off-peak loads.To simplify the analysis,the data in this response assume that none of ML&P's hydroelectric resources would be available to serve MEA load.but that assumption is conservative. 2of 4 can be seen on Exhibit 1,ML&P's IRP provides for all of ML&P's projected peak load to be satisfied by newer,more efficient,and more reliable thermal units that are less than 30 years old and by hydroelectric resources.while allowing older,less reliable,and less efficient thermal units to be used to provide only required reserves and dual fuel capability. Thus,in 2015,ML&P's thermal resources (462 MW)are projected to exceed ML&P's peak load and reserves (384+MW)by approximately 78 MW.However,most if not all of those 78 MW are from very old.inefficient thermal units that MLE&P likely would not be able to operate extensively as required for firm sales.For this reason,assuming ML&P's existing and currently project resources,it ts unlikely that ML&P would have any material quantity of peak thermal capacity available beginning in 2015 to serve MEA loads on a firm basis. Regarding interruptible service,up to approximately 239 MW could,technically.be available in 2015 at some times during the year and on a fully-interruptible basis.This amount reflects the amount of capacity from ML&P's 30 to 40 year old resources (see yellow bar on Exhibit 1)and resources that are less than 30 years old (see green bar on Exhibit 1)that is in excess of ML&P's peak load.However,among other things.the availability of that capacity for interruptible sales would be limited by scheduled and unscheduled maintenance on ML&P's generation units,the need to reasonably manage balance of plant risk associated with extensive operation of these older units,and the extent to which other resources from Chugach Electric Association,Inc.,and Golden Valley Electric Association,Inc.,are available to backstop ML&P in exigent circumstances, e.A description by Chugach,GVEA,and ML&P of whether MEA's power needs could be met by modifying either their current generation or planned generation capacity to meet some or all of MEA's peak or base loads and energy requirements as shown in the Alaska Railbelt Regional Integrated Resource Plan (RIRP)Study. There are two primary potential modifications to ML&P's generation resource plan that could possibly assist in providing firm capacity to help meet MEA's load requirements beginning in or around 2015,assuming thal other factors could be adequately addressed.Any scenario under which ML&P could make material amounts of firm capacity available to serve MEA loads would require one or both ofthe modifications set forth below. A.Change the planned addition of an LM2500+G4 simple cycle unit (34 MW)at Plant 1 to an LM6000 simple cycle unit (48 MW).This change could,solely from a technical perspective,provide 14 MW of capacity available to serve MEA loads (on a firm or interruptible basis),losses,and required reserves.Depending on when such a change in plan was decided upon,and subject to delays associated with additional emissions permitting requirements,this additional capacity could be available by 2015.Given the status of ML&P's procurement process,this type of change would have to be decided upon very quickly (within a few months). B.Change the planned addition of one LM60Q00PIL.CC combined cycle unit (65 MW)at Plant 2 to add a second LM6000 (130 MW total for two LM6000 units and one steam turbine in combined cycle),This change could,solely from a technical perspective,provide 3 of 4 65 MW of capacity available to serve MEA loads (firm or interruptible),losses,and required reserves.However,adding a second LM6000 at Plant 2 would require substantial sitemodificationsandwouldlikelyrequireadditionalemissionspermitting,which could delay completion of the Plant 2 additions several months or longer beyond the currently planned June 2015 completion date.Given the status of ML&P's procurement process,this type of change would have to be decided upon very quickly (within a few months). 4ot4 5500 i 5000 -}voto ®Turbine Age:40-S0 Years 450.0 -i we Turbine Age.30-40 Years ' 400.0 -I aa erin amennae -®Turbine Age <30 Years -™AS 3503 -he nee Neen,@ Hydroeiectric 300.0 7 TORO --oe wrest ew 2 2 250.0 -Teme name ne meee meeooPU--_- 150.0 -ee mmm Peak Load Forecast : 100.0 ;ee eee eee eee m=Reserve Capacity 'Requirement 0.:ar50.0 gs i 4 id >N-2 Connngency 00 1 t ..i .Reserve 2012)2014 «=2016 =2018 =2020,2022)2024)=2026 )=-2028)1030 =2032 2034 EXHIBIT 1 Page 1 of 1 oonoOaFRWODN=NOBDKRDRPRPAOAD=|=-ewekeflelfllklkOoafFOND|=GODCODWNYODOOQHRWDDB=OSTATE OF ALASKA REGULATORY COMMISSION OF ALASKA T.W.Patch,ChairBeforeCommissioners:Kate Giard Paul F.Lisankie Robert M.Pickett Janis W.Wilson In the Matter of the Evaluation of Matanuska )1-11-5 Electric Association,Inc.'s Power Requirements ) GOLDEN VALLEY ELECTRIC ASSOCIATION,INC'S, RESPONSE TO ORDER NO.1 Golden Valley Electric Association,Inc.(GVEA)respectfully files its Response to Order No.1 in Docket I-11-5 of the Regulatory Commission of Alaska (Commission). I.INTRODUCTION GVEA's service territory is located in the Interior of Alaska,north of the Alaska Range.Its only connection with the other Railbelt utilities,such as Matanuska Electric Association,Inc.(MEA),is through the limited single-circuit Alaska Intertie. As the Commission is aware,GVEA must plan for circumstances in which access to the Alaska Intertie is unavailable.Consequently,GVEA values its capacity highly and will not commit to the sale of any of its capacity without the assurance that the needs of its members are protected.That said,GVEA will always assist another utility when an emergency is at hand.When there are no emergent circumstances, GVEA is willing to assist MEA with its power supply challenges within the constraints of GVEA's operating criteria,but it must be understood that GVEA will not compromise service to its members. Tl Page 1 -GVEA,INC'S RESPONSE TO ORDER NO.1 McDowell Rackner &Gibson PC .419 SW 11"Avenue Suite 400 Portland,OR 97205-2605 ooNOooOKRWOPH=RMAADROAADDRBwowewwkwkkktekoOoaoa&WwWHO=OCOOBOBNNDOOHBHWDFO=OOGVEA is currently experiencing some of the highest rates in the Railbelt because of its dependence on oilfired generation.GVEA is expending considerable efforts to reduce its high cost of energy.However,because of this situation involving high fuel costs,it must be understood that GVEA will reserve its most efficient generating units to supply its native load requirements. After a discussion of the planning criteria used by GVEA,this Response will address the Commission's inquiries in Docket !-11-5 and provide some general comment on the subject of this investigation. I.GVEA'S PLANNING CRITERIA GVEA evaluates its capacity requirements (and hence what amount of capacity GVEA would have available to assist MEA with its power supply challenges)via the minimum of a three-pronged approach.GVEA's objective in its power planning activities is to satisfy all three criteria,or prongs,at all times.The three prongs are: A.Capacity sufficient to meet GVEA's system peak requirements plus a 30% reserve.This is GVEA policy and is contractually required in agreements among the Railbelt utilities.GVEA needs to provide the 30%margin for any firm sales as well. B.Capacity sufficient to meet 100%of GVEA's system peak load requirements after losing its largest contingency (generation unit or transmission line).This N-1 criterion is GVEA policy as well as prudent utility practice. C.Capacity sufficient to meet 100%of GVEA's system summer peak loadrequirements,while having the largest generation unit out for maintenance, and then losing its next largest generation unit.This is a variation of Prong B above.Large generation unit maintenance is generally done in the summer when GVEA can best meet this criterion. Hl Hl Hl Page 2-GVEA,INC'S RESPONSE TO ORDER NO.1 McDowell Rackner &Gibson PC 419 SW 11"Avenue Suite 400 Portland,OR 97205-2605 oOonoOooOF&FHORDROBRSnNNOANnN-_-_a-__=_-_osOoanazooRO=Oo[ie]eo "Ooa>ooNO=[=]RESPONSE TO COMMISSION INQUIRIES A.A description of GVEA's existing or projected capacity to providefirmorinterruptibleelectricpowertoMEAbeginningattheexpirationofMEA's wholesale power agreement with Chugach. GVEA currently has only 8 MW of capacity available to sell to MEA using the aforementioned planning criteria.The availability of this capacity is at all times subject to the availability of the Alaska Intertie.The following discussion indicates what amount of GVEA's system capacity is available to assist with MEA's power supply challenges under the three-pronged approach. GVEA's existing capacity (MW)for a typical January day and a typical June day are shown in Table 1 below. Hil Ml | Hl Table 1 GVEA Capacity By Generator Generating}Winter |SummerUnitCapacity|Capacity(MW)(MW)NPP GT1 60 44 NPP GT2 64 51 ZNP GT1 18 16 ZNP GT2 18 15 ZNP DE4 ZNP DE2 HLP ST1 27 27 HLP DE2 DPP 26 23 BLH 20 20 AE 21 21 HCCP NPE3 50 41 NPE4 10 10 NPE5 EC Page 3 -GVEA,INC'S RESPONSE TO ORDER NO.1 McDowell Rackner &Gibson PC 419 SW 11"Avenue Suite 400 Portland,OR 97205-2605 oOoNOooOoFkWOND=NMPONMADNPNA"w=oemeeokeklelaoonfFWONO|=0©BOVNODOoOBRHOND=COPlease note that GVEA's diesel-fired generating units are generally used for black start.'Eva Creek will be operational by 2014,but as a wind farm,will have no capacity associated with it. | GVEA's most recent Load Forecast (SAIC 3/11)predicted near term Net System Peak Demand growth to average 0.9%/year for the period 2010-2015. GVEA experienced a recent (1/09)winter demand of 220.5 MW of which 31.2 MW was non-firm and an additional capacity obligation of 12.3 MW.GVEA also experienced a recent (6/10)summer demand of 176.7 MW of which 30.7 MW was non-firm and an additional capacity obligation of 12.2 MW.Application of the three- pronged approach described above yields the following surplus capacities: A)43 MW-(capacity to meet peak plus 30%) B)52 MW-(capacity to meet peak after losing largest generation unit,N-1) C)8 MW-(capacity to meet summer peak with two largest generation units unavailable;one unavailable for forced outage and one unavailable for maintenance) Thus,under the most optimal of circumstances,GVEA only has a maximum of 8 MW firm to sell to MEA due to the need to meet its summer maintenance criterion (Prong C).It should be noted,that since a "firm”customer has precedence over a "non-firm'customer,the selling of 8 MW to MEA would be at the expense of completely curtailing our non-firm members whenever one of our large units trips in the summer while another large unit is out for maintenance.It should also be noted that MEA is separated from GVEA by the Alaska Intertie,a single circuit.If the intertie was down,GVEA could sell 8 MW of its Bradley Lake share to MEA,but currently due to Kenai export limitations,it is often difficult to guarantee 8 MW at any 'HCCP and NPES will be discussed in the response to the Commission's second inquiry. Page 4-GVEA,INC'S RESPONSE TO ORDER NO.1 McDowell Rackner &Gibson PC 419 SW 11"Avenue Suite 400 Portland,OR 97205-2605 oOOonNOooOF&FWDDN=NRBDBRNBDPAOAOAOwdemmeekekeklklklkoOoanaBFWOWHO|=OG©D9NODOONB&FWOHYS&COone time.And by 2014,when Homer Electric Association,Inc.2 (HEA)has its generation online,it may be functionally that Bradley Lake is energy only;with no capacity.In other words,GVEA will ultimately receive energy from Bradley Lake,but not necessarily at the time of GVEA's choosing. , Currently,with the same recent winter demand of 220.5 MW of which 31.2 MW was non-firm,and recent summer demand of 176.7 MW of which 30.7 MW was non-firm,GVEA appears to have the ability to provide the following interruptible electric power to MEA: Winter:Up to 94 MW (Intertie at 80 MW and GVEA's Bradley Lake share) Summer:Approximately 40 MW (more at night,less if a unit trips).° B.Adescription of whether MEA's power needs could be met bymodifyingeitherGVEA's current generation or plannedgenerationcapacitytomeetsomeorallofMEA's peak or baseloadsandenergyrequirements. GVEA may potentially have the ability to provide MEA with access to three additional generation resources that could meet some of MEA's peak,however, each resource has limitations.The generating resources are:Eva Creek Wind Project (Eva Creek);Healy Clean Coal Project (HCCP);and GVEA's North Pole Expansion plant (NPE). ) GVEA expects to have Eva Creek operational prior to 2014.This generation project will not provide any capacity,but could play a role in interruptible energy sales.Of course,the details of any such arrangement have not been contemplated ?GVEA does not understand why all Rallbelt Utilities were not included in the list of utilities required to respond to the Commission's inquiry about issues commencing at the end of 2014. 3 The value is based on what is left after serving GVEA's existing non-firm loads. Page 5 -GVEA,INC'S RESPONSE TO ORDER NO.1 McDowell Rackner &Gibson PC 419 SW 11"Avenue Suite 400 Portland,OR 97205-2605 ooanOooOFRWODY=kkonoOoonFsWODS=|OD19 by GVEA and would depend on what generation MEA has available to backup the interruptible energy. GVEA is working hard on obtaining permits to restart and purchase AIDEA's HCCP coal-fired generating unit.This generation project could eventually yield approximately 55 MW of additional capacity even though GVEA is pursuing the development of the project primarily to reduce the cost of energy to its members. Although HCCP could be started by 2014,the unit would likely not be ready for continuous base load operation until a few years after 2014.GVEA is expecting reliable operation,but with frequent shutdowns in the interim during start-up. When GVEA built its North Pole Expansion plant,many of the common components were sized to accommodate an additional LM6000 at the site (a two-on- one facility at complete build-out).This generation project would increase capacity by 60 MW when completed,but the high cost of fuel is an issue. , IV.OTHER MATTERS While GVEA is ready to assist MEA within GVEA's system capability and availability,the Commission should be mindful that GVEA has some of the highest cost energy in the Railbelt.As a result,GVEA is always looking for ways to reduce its energy costs and is generally more interested in purchasing energy from a new potential generating unit in the Railbelt,rather than selling its high cost energy to another utility.GVEA would not like to put itself in a position in which most of our capacity has been tied up to the point that a small amount of growth in our membership will necessitate additional capacity.Although not a short term concern, GVEA has had discussions with potential large customers in the interior that,if constructed,would require much of our additional capacity.Any new capacity would have to be built by GVEA north of the Alaska Range due to the single line Alaska Intertie that connects GVEA to Southcentral Alaska. Page 6 -GVEA,INC'S RESPONSE TO ORDER NO.1 McDowell Rackner &Gibson PC 419 SW 11™Avenue Suite 400 Portland,OR 97205-2605 oonmpmnnFFWOND=SaetkakkonOoaAFFWODY|=OC19 The Commission's Order No.1 in this investigative docket states that it is gathering information about the progress of MEA toward obtaining new sources of electric power after the expiration of its power supply contract with Chugach Electric Association,Inc.(CEA).The Commission order,however,does not include Homer Electric Association,Inc.,a Railbelt utility that has generating resources.The order also does not indicate whether the Commission is investigating the fitness of MEA's management or MEAs ability to adequately serve its members.Since the Board for MEA,an electric cooperative,has made the decision to build its own generation rather than remain a wholesale customer of CEA,GVEA requests that the Commission articulate in its next order in this matter the standard the Commission intends to use when evaluating MEA's actions. The undersigned certifies that he has read this document and knows the contents to be true and accurate to the best of his knowledge and belief. RESPECTFULLY SUBMITTED,this 12"day of December 2011 at Anchorage,Alaska. NMCDowWELt RACKNER &GIBSON PC an»oC:-Kirk Gibson Alaska Bar No.9611 McDowell Rackner &Gibson PC 419 SW 11"Avenue,Suite 400° Portland,OR 97205 Telephone:(503)595-3922 Of Attorneys for GVEA Page 7 -GVEA,INC'S RESPONSE TO ORDER NO.1 McDowell Rackner&Gibson PC419SW11"Avenue Suite 400 Portland,OR 97205-2605 RCA Public Meeting Docket I-11-5 Evaluation of Matanuska Electric Association,Inc.'s Power Requirements Docket |-11-5 Evaluation of Matanuska Electric Association,Inc.'s Power Requirements ¢12/14/11 public meeting *Matter at hand I-11-005 in public meeting format,with filings from MEA,GVEA,ML&P and Chugach *Purpose -"to gather information about the progress of MEA toward obtaining new sources of electric power after the expiration of its power supply contract with Chugach at the end of 2014.” 12/14/2011 12/14/2011 Docket I-11-5 Evaluation of Matanuska Electric Association,Inc.'s Power Requirements Requested Information 1.Description by Chugach,GVEA and ML&P of existing or projected capacity to provide firm/interruptible electric power to MEA. 2.Description by Chugach,GVEA and ML&P of whether MEA's power needs could be met by modifying current or planned generation to meet some or all of the MEA's peak or base loads and energy requirements as presented in the RIRP. 3.Along with 10 year financial plan,provide equity management plan,including retail rate projections,and projected maintenance and operations costs. Docket !-11-5 Evaluation of Matanuska Electric Association,tnc.'s Power Requirements *Chugach Filing -Chugach can meet the MEA load and has been negotiating to do this. -Relatively small investments are necessary Chugach willing to consider joint G&T relationship -Notes the RIRP estimates if MEA/HEA committed units built,additional $484M cost to the Railbelt Ratepayers. Docket I-11-5 Evaluation of Matanuska Electric Association,Inc.'s Power Requirements ¢GVEA Filing -There really isn't power to spare,and it will be expensive. -They will help out in a pinch. Docket I-11-5 Evaluation of Matanuska Electric Association,Inc.'s Power Requirements *ML&P Filing -They have reserves but they are old. -They are not making any offer what so ever to sell power to MEA. -Reserve units will be uneconomic. 12/14/2011 Docket 1-11-5 Evaluation of Matanuska Electric Association,Inc.'s Power Requirements AEA statements RIRP quote included in Chugach filing on cost increases because of the committed units -can confirm that finding Glad to see the inquiry.Joint action is preferable when AEA moves to develop financing packages for hydro power projects and backbone transmission infrastructure. Like the idea proposed by Chugach to have MEA join to explore a jointgenerationandtransmissionapproach,and compare it to the present cost proposals that implement separate developments. AEA would like decision making process to include consideration of Watana power. 12/14/2011