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HomeMy WebLinkAboutAEA Board Meeting Minutes April 17 2024 813 W Northern Lights Blvd, Anchorage, AK 99503  Phone: (907) 771-3000  Fax: (907) 771-3044  Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG RGYAUTHORITY.ORG Alaska Energy Authority BOARD MEETING MINUTES Wednesday, April 17, 2024 Anchorage, Alaska 1. CALL TO ORDER Chair Pruhs called the meeting of the Alaska Energy Authority to order on April 17, 2024, at 8:30 am. 2. ROLL CALL BOARD MEMBERS Members present: Chair Dana Pruhs (Public Member); Vice-Chair Bill Kendig (Public Member); Albert Fogle (Public Member); Julie Sande (Commissioner DCCED); Adam Crum (Commissioner DOR); and Randy Eledge (Public Member). Absent, Bill Vivlamore (Public Member). A quorum was established. 3. AGENDA APPROVAL MOTION: A motion was made by Vice-Chair Kendig to approve the agenda. Motion seconded by Mr. Fogle. The motion to approve the agenda passed without objection. 4. PRIOR MINUTES – March 6, 2024 MOTION: A motion was made by Vice-Chair Kendig to approve the prior minutes of March 6, 2024. Motion seconded by Mr. Fogle. The motion to approve the minutes of March 6, 2024 passed without objection. 5. PUBLIC COMMENTS (2 minutes per person) There were no public comments. Chair Pruhs requested that Jennifer Bertolini, AEA, make him aware if anyone comes online at a later point. 6. NEW BUSINESS – None 7. OLD BUSINESS A. Resolution No. 2024-04 Railbelt Innovative Resiliency Project, GRIP 3, Round 2 Application Submittal Alaska Energy Authority Page 2 of 12 Executive Director Curtis Thayer explained that Resolution No. 2024-04 is the application that is to be submitted by today’s noon deadline for the high voltage direct current (HVDC) line from Beluga to Healy. He provided background information that the GRIP 3, Round 1 application was approved and funded for the HVDC line from Nikiski/Kenai to Beluga, and Department of Energy (DOE) requested that the Beluga to Healy line portion be submitted in a subsequent round. The concept paper was originally provided to Board members in January with the final draft provided to members yesterday. The concept paper was selected by DOE in March to submit a full grant application by today’s deadline, giving approximately 3 weeks after the selection for final preparation. The application is for $730 million, of which $365 million is the federal share and $365 million is a match. The State is not assumed to provide the match funding. The match is expected to be provided primarily by the utilities. Letters of support by the utilities are included in the Board packet. Mr. Thayer explained that the utilities have spent $175,000 in consultant fees to help staff submit the application by today’s deadline. Mr. Thayer read the resolution. Chair Pruhs asked if it is normal for federal agencies to give such short three-week application deadlines for extensive applications as this one. Mr. Thayer expressed his understanding that the shortened timeframe is normal and may be due to the upcoming election and trying to commit the available funding. Chair Pruhs noted that Mr. Thayer provided a memorandum to Board members. The memorandum will be discussed and adopted at the next Board meeting. Mr. Thayer advised that since Commissioner Sande is attending remotely today, he would ensure that she is provided the memorandum. Chair Pruhs expressed appreciation to everyone who has worked tirelessly over the last 3 weeks to meet the submittal deadline. Ms. Bertolini informed Chair Pruhs of a hand-raised online. Chair Pruhs indicated that Agenda Item 7. Old Business will be concluded before addressing anyone online. There was no objection. Commissioner Crum echoed the comments of appreciation for the diligent work. He noted that the utilities’ plans for the funding match for the previous GRIP application was eight years. He asked if the timeframe was the same for this application. Mr. Thayer agreed, and explained that negotiations are ongoing and will be subject to the approval of the utilities’ boards, which is only one portion of the much larger and extensive grant negotiation process. Commissioner Crum asked who would own the asset. Mr. Thayer discussed that AEA would be the owner of the asset. Commissioner Crum explained that a revenue bond on this type of asset would be tied to the life of the asset from 50 years to 75 years, and would be amortized over that long lifespan. Chair Pruhs commented that Round 1 and Round 2 are expected to take eight years and utilize Alaska Energy Authority Page 3 of 12 funding of approximately $1.2 billion. Chair Pruhs asked if AEA has the internal infrastructure to achieve this goal. Mr. Thayer commented that AEA would have to add internal staff accordingly. He believes that there will be challenges for this project regarding the contracted work and skilled workforce that is needed. Chair Pruhs requested Mr. Thayer provide a high-level overview of the major projects within the next eight years. Mr. Thayer highlighted the timeframe and possible funding for the projects of Dixon Diversion, SSQ Line upgrade, and Nikiski HVDC Line with contingent BESS acquisitions. This current HVDC application, if approved by DOE, would be awarded in August or September 2024, and would require the Governor and the Legislature to seek federal receipt authority for an effective date of July 1, 2025. Commissioner Sande expressed appreciation for staff’s efforts on the project applications and for providing the extensive information within the Board packet. She commented on the challenges of keeping pace with the information, especially since there are multiple phases within the GRIP 1, 2, 3 applications. Commissioner Sande requested that for the Board’s clarity, the projects be identified by a name, rather than by numbers. She suggested to Chair Pruhs that the Board meet after this session is complete to discuss the current two projects. Commissioner Sande highlighted the substantial increase in project applications since she joined the Board four years ago, which she believes requires more time from the Board and staff. She commented that there would be a better understanding post-session as to the direction of AEA and AIDEA. She advocated for two days of meetings for the Board to remain knowledgeable about the applications and projects. Commissioner Sande asked Mr. Thayer if her understanding is accurate that staff is seeking AEA Board support for this application, which has the full support of the Railbelt utilities for both its reliability and redundancy, as shown by their monetary contribution to meet the application deadline. Mr. Thayer agreed and reiterated that the utilities have contributed up to a total of $175,000 to move the application forward within the prescribed timeline. Commissioner Sande emphasized the high level of support for this project. She believes it will provide a great opportunity for Alaskans. Commissioner Crum informed that there is also a letter of support from all the utilities acknowledging their commitment to working together on the funding perspective and the training and apprenticeship perspectives. He complemented the team for compiling the robust letters of support. Vice-Chair Kendig echoed the comments of support and noted that the collaboration of the Railbelt utilities is a recognition of the strategic importance of the project. Chair Pruhs requested a brief at-ease. There was no objection. A brief at-ease was taken. The Board resumed the regular meeting. Chair Pruhs acknowledged this step of the process is almost complete. He requested that Mr. Alaska Energy Authority Page 4 of 12 Thayer soon describe the theoretical schedule to execute the project of this magnitude. Vice-Chair Kendig informed that he has a conflict of interest as the Matanuska Electric Association (MEA) Board President. He recused himself from the vote. There were no objections and there were no additional questions or comments. MOTION: A motion was made by Mr. Fogle to approve Resolution No. 2024-04 Railbelt Innovative Resiliency Project, GRIP 3, Round 2 Application Submittal. Motion seconded by Commissioner Crum. A roll call was taken, and the motion to approve Resolution No. 2024-04 passed, with Vice- Chair Kendig recused. B. FY25 Budget Update Mr. Thayer explained the Governor’s budget amendments provided in the Board’s packet. Mr. Thayer discussed the updated budget numbers for the upgrades to the SSQ Line and the work on the HVDC line that are now in the spending phase of the budget. The information is included in the Board packet. Mr. Thayer informed that with the inclusion of the Infrastructure Investment and Jobs Act (IIJA) funding, the budget has increased 1,673% in five years. With the inclusion of the bonding, the budget has increased 2,600% in five years. Mr. Fogle noted that the operating budget increased by $2 million. He asked if that funding will be used to hire personnel or if personnel will be included in the capital budget. Mr. Thayer explained that all, but one, personnel positions will be within the capital budget. The one operating position is an additional accountant for Bradley Lake. Mr. Thayer discussed that all requested personnel positions are included during the budget process. The next budget process will begin in July. There were no further questions. C. Indirect Cost Allocation Plan Update Mr. Thayer reviewed that the Indirect Cost Allocation Plan is an AEA goal to negotiate the indirect cost rate agreement with the federal government. For the last 40 years, the de minimis indirect rate of 10% has been utilized. Mr. Thayer discussed that the project was spearheaded by the finance staff, including staff returning from retirement to work on the project. An accounting firm was contracted to audit the books. Staff was able to negotiate a true rate with the federal government of 31.85% for the indirect administrative and overhead costs. This increased rate allows AEA to collect more on the federal dollars. Mr. Thayer noted that in FY 2023, approximately $300,000 was received for indirect costs. With this new rate, that total would have been a little over $1 million for the indirect costs charged to the federal government. Mr. Thayer complimented the finance team who achieved this goal. He noted that the team submitted to the federal government an indirect rate of 31.86%, and after the federal government’s audit, they agreed with an indirect rate of 31.85%. Mr. Thayer explained that the major impact of approximately $7 million in indirect rates would be seen with the larger GRIP funding awards. There were no additional Alaska Energy Authority Page 5 of 12 questions. Chair Pruhs asked Ms. Bertolini if it is necessary to return to Public Comments. Ms. Bertolini indicated there is one hand-raised online. There was no objection from Board members to reopening Public Comments. Ben Hopkins, lifelong Alaska resident and owner of 49th State Power, commented on his concerns with recent actions of AEA that circumvent regulations with no public process, review of accountability that are in favor of individual contractors. In late November 2023, a contractor shared with AEA staff that they found a catastrophic failure of a powerplant. The contractor did not have materials available to perform the repairs and contacted AEA to advise on the situation. The community at that time had two operable generators. By definition, this was not an emergency. Mr. Hopkins explained that AEA staff stated in an email, chain dated November 11, 2023, that they could supply the contractor with State-loaned equipment for the installation. Mr. Hopkins explained that AEA staff indicated that since the community had a contract with the contractor AEA could trade State asset 0814450 for a forthcoming engine from the contractor of equivalent output. However, the community and the contractor were not in contract until after the trade was approved by AEA on December 14, 2023. There was no discussion about specifications, warranty, or suitability for purposes of the equipment offered in trade to AEA. The equipment provided by the private contractor is different and not equal to the equipment provided by AEA, even though it has equivalent output and displacement. The engine is surplus and not new. It has a different engine model, a different EPA emissions kit, different fuel economy, and no warranty. Mr. Hopkins informed that there was no bill of materials, no bill of lading, and not even a photo of the engine data plate to document what was accepted as a trade by AEA. He previously requested staff to explain which part of the procurement code permitted this series of events to transpire. He noted that staff’s response was that the procurement code did not apply; rather that AEA has a statutory right to exchange property in which it has an interest in the judgement of the Authority. Mr. Hopkins believes this trade was taken out of context and the methods used in this circumstance are a violation of the public trust and are an abuse of power. Mr. Hopkins requested that AEA Board take action to review the series of events and to clarify the language of the governing statutes to ensure that AEA and staff always seek open and fair public competitive bids for all purchases of goods and services. Mr. Hopkins commented that the Board’s consideration of these matters and solutions is much appreciated. Chair Pruhs expressed appreciation to Mr. Hopkins for his comments. Chair Pruhs asked staff to research the occurrence and to provide the Board with an overview of the procurement process during this instance. Mr. Thayer agreed and noted a response will be provided at the next meeting. Mr. Eledge asked if Mr. Hopkins’ comments were submitted in writing. Mr. Thayer indicated that Mr. Hopkins has not submitted those comments in writing. Chair Pruhs requested that Ms. Bertolini obtain Mr. Hopkins’ comments in writing and provide them to members. There were no Alaska Energy Authority Page 6 of 12 objections and no further public comments. Chair Pruhs returned to the scheduled agenda. 8. DIRECTORS COMMENTS A. Railbelt Opportunities – Map and Pitch Sheets Mr. Thayer discussed the maps and pitch sheets included in the Board packet and contained within the PowerPoint, which has been shared with the Senate and House Resources Committee and the Governor. Mr. Thayer gave an overview of the Subsea HVDC Line Project between the Kenai Peninsula and Beluga from the GRIP selections that includes battery energy storage systems (BESS) for grid stabilization. The completion date is expected in 2031. Mr. Thayer highlighted the project information regarding the SSQ Transmission Upgrade. He discussed that the summary list of major renewable energy projects being considered on the Railbelt identifies the project name, the technology, the annual output, and the amount of gas the project could displace in Cook Inlet. Mr. Fogle requested Mr. Thayer to create a dynamic map, which is similar to the map provided that can be updated as the projects are finalized. Mr. Thayer agreed. Chair Pruhs requested Mr. Thayer create a spreadsheet that shows the cost to the ratepayer for every $100 million of debt that the Railbelt utilities incur for the GRIP projects. Mr. Thayer noted that same request was received yesterday and staff is currently working to provide the information, which will include different possible funding solutions and other scenarios that could have a positive net effect for the ratepayers. Commissioner Crum noted that DOR has ratepayer modeling and offered the information to staff. Mr. Thayer expressed appreciation and agreed that collaboration would be helpful. Commissioner Crum discussed other financial modeling DOR is exploring to be presented to the Legislature next year. He believes a higher level of collaboration with AEA and the Railbelt utilities will contribute to the modeling provided to the Legislature. Commissioner Sande requested Mr. Thayer review for the record the benefits to rural utilities and the relation to Power Cost Equalization (PCE). Mr. Thayer explained that the PCE formula is established by the Regulatory Commission of Alaska (RCA) and creates a floor and a cap for electric rates in rural Alaska. The floor rate varies and is based on the weighted cost from Juneau, Anchorage and Fairbanks. The cap rate is fixed. AEA’s goal is to lower the cost of electricity. The lower the cost of electricity is on the Railbelt, the more funding is available to rural Alaska through the PCE Program. Mr. Thayer gave an overview of the benefits to the military from the Black Rapids project work and proposed redundancy. Mr. Thayer discussed the partnership with Alaska Housing Finance Corporation (AHFC) on the Solar for All competition application entry. If awarded, AEA would utilize the grant style program of the Renewable Energy Fund to focus on the development of community solar projects in disadvantage communities, while AHFC would focus on residential Alaska Energy Authority Page 7 of 12 rooftop solar for low-income housing. The announcement is expected soon. Mr. Fogle agreed with Commissioner Crum that the outlined work is a generational investment into Alaska. Mr. Fogle asked if the route has been determined for the HVDC line from the Anchorage area to Healy. Mr. Thayer discussed that the proposed route is in alignment with the potential gas line corridor. However, the specific route has not yet been identified and there are challenges with that gas line corridor. Mr. Fogle inquired as to what funding applications will be submitted for the proposed Railbelt line from Glennallen to Tok to Delta. Mr. Thayer noted that preliminary studies conducted by the Denali Commission identified that there is no grant money available for funding that transmission line. One of the challenges is that there is not necessarily a champion for the complete routing. There are currently not many residents and not much load in the area to economically support a line of that size or to support building a line of that size. Mr. Thayer explained the proposal considers a 20-year to 30-year outlook. Mr. Eledge asked for clarification if the proposed Roadbelt Intertie Project includes the Delta Junction to the Black Rapids training site. Mr. Thayer explained that the Roadbelt Intertie Project begins at Sutton to Glennallen to Gulkana and terminates at the Black Rapids training site. Additionally, there is potentially another 30 miles of routing to Delta Junction, and alternate routing from Gulkana to Tok to Delta Junction. The project would be segmented. However, there is not currently the load in Tok, Delta Junction, or Glennallen to justify the $2.5 million per mile cost to build the line. Mr. Eledge commented that he believes the Delta Junction to Black Rapids training site is a different opportunity than Gulkana to the Black Rapids training site. Mr. Thayer agreed, and noted that the Delta Junction to Black Rapids line is presently under construction. Chair Pruhs asked if any Bradley Lake power reaches Delta Junction. Mr. Thayer explained that Golden Valley Electric Association (GVEA) receives 17% of Bradley Lake power and disperses it within their system. There were no other questions. B. IIJA Update i. IIJA Tracker Mr. Thayer discussed the included proposed draft memorandum concerning Board approval of the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA) funding opportunities in which AEA is the primary applicant. The purpose is to bring prospects that are greater than $5 million before the Board for approval to proceed to the application phase. Staff will provide the Board with a White Paper for each specific application. Mr. Thayer noted that the passage of Board resolutions for grant agreements are part of the final procedures by OMB, the Governor’s Office, and the Legislature for the approval of receipt of federal funds. Mr. Thayer explained that many of the applications come up on short notice with expedient Alaska Energy Authority Page 8 of 12 deadlines. He highlighted the White Paper included in today’s Board packet is an example that the Board could take action on today. The application is due on May 10, 2024, which is prior to the next scheduled Board meeting. Mr. Thayer requested to move forward with the application process. Chair Pruhs commented that today’s meeting is too soon for the Board to review and to decide on the provided information. He suggested that in this instance, Mr. Thayer inform the Board members if the application is worthwhile to pursue. Chair Pruhs requested legal counsel to research and comment on the possible ways of facilitating Board acknowledgement for applications that have short timelines without violating the Open Meetings Act. Kent Sullivan, AEA Counsel, commented that he understands the request and will research and provide a complete response. Mr. Thayer discussed that the grant negotiations and agreements typically have a 120-day deadline for action. He highlighted that the partial grant agreement provided to the Board today for the GRIP 3, Round 1, Phase 1 award of $413 million currently contains 405 pages and is expected to increase to over 1,000 pages after four additional documents are received. The documentation will be provided electronically as much as possible. However, portions of the document will be provided in hard copy. Mr. Thayer explained that the document and final resolution would be reviewed by legal counsel before it comes before the Board for approval. Chair Pruhs asked what process staff uses to track and delineate their time and efforts among the various grants. He asked if there is a separate cost code that can be filtered at the end of the year to provide the total time attributed to grant applications. Mr. Thayer explained that in the first year of IIJA, the Legislature designated $250,000 that AEA staff could charge into. That amount has not been extended. Many of the new applications have an option for the current cost to be applied when the grant is approved. Mr. Thayer agreed that staff time is being tracked and identified per application with the goal of reimbursement. Chair Pruhs commented that he is curious to see staff’s business development costs and staff’s capture rate. Mr. Thayer requested Board members provide recommendations on the provided memorandum for discussion at the next Board meeting. Chair Pruhs asked Board members to send their comments and questions to Mr. Thayer a week before the next meeting. Chair Pruhs suggested that the total amount of anticipated staff-hours are identified in the white papers given to the Board. Mr. Fogle asked for the reasons why the Executive Director would not determine which grant applications to pursue. Ultimately, all projects come before the Board. Chair Pruhs commented that discussion would occur offline. There were no other questions. ii. Railbelt Innovative Resiliency Project (GRIP 3) Update – Included in Board Packet iii. EPA’s Climate Pollution Reduction Grant (CPRG) – Dixon Diversion Alaska Energy Authority Page 9 of 12 Mr. Thayer advised that the CPRG – Dixon Diversion has been discussed at previous Board meetings. The actual application is included in the Board packet and is in conjunction with the DEC grant application. There is no match required. iv. EPA’s Climate Pollution Reduction Grant (CPRG) – Rural Energy Programs Mr. Thayer advised that the CPRG – Rural Energy Programs has been discussed at previous Board meetings. The actual application is included in the Board packet. Mr. Fogle asked if there are downside conditions for AEA to apply for the EPA grants. Mr. Thayer noted that the Governor’s Office has a process to review the conditions on the federal grants and that the Governor ultimately makes the decision to pursue the grants and to receive federal receipt authority. The EPA applications have been submitted and the approval will not be determined until August or September. v. Energy Auditor Training Grant Concept Paper – Commercial (AEA) - Included in Board Packet vi. Energy Auditor Training Grant Concept Paper – Residential (AEA for AHFC) - Included in Board Packet vii. Naknek – Dillingham Intertie & BESS Project (GRIP 2, SmartGrid Grants) Mr. Thayer discussed the Naknek – Dillingham Intertie & BESS Project grant. He highlighted that AEA staff wrote a letter of support for the project, and in turn, the applicant wrote the concept paper with AEA as the lead and indicating that AEA would be responsible for the grant and the required match. AEA staff was unaware of that role in the concept paper. Meanwhile, the concept paper moved to the application phase, at which time, AEA staff discovered this unapproved role. AEA staff communicated that AEA will not be the lead and will not be responsible for the match. AEA staff again expressed support for the application, but not in its current format. The applicant acknowledged. C. Power Cost Equalization (PCE Endowment Fund Update) Mr. Thayer indicated that the PCE Endowment Fund Update included in the Board packet is for informational purposes only. As of February 2024, the rate of return was 4.3%. D. Rural Update Mr. Thayer noted that Rebecca Garret, Rural Programs Manager, is available to discuss the Rural Update provided in the Board packet. Mr. Fogle noted that prior Rural Update reports included a listing of the status of the monitored powerhouses. He asked if that information was still available. Mr. Thayer indicated that information is available and is on a particular schedule as to when it is included in the Board packet. He noted that several communities in rural Alaska are down to only one generator. The Alaska Energy Authority Page 10 of 12 emergency response team has been notified. Mr. Thayer acknowledged this challenge, and he expects a budget increase request for emergency response for next year. The list and information that is provided to the Board is the same information provided to the Legislature. Chair Pruhs commented on the emergency power issues in rural Alaska this past winter. He requested additional information on the rural communities on one generator. Mr. Thayer requested that Tim Sandstrom, Chief Operating Officer, and Ms. Garrett respond. Mr. Sandstrom noted that the list that was recently provided to the Legislature identifies the communities with minimal power generation and the list will be shared with the Board. Chair Pruhs asked for an update regarding the fuel spill in the rural community where the pump was accidentally left running all night, and he asked if the community has replaced the fuel. Mr. Sandstrom responded that AEA is not involved in that situation. Ms. Garrett noted the spill occurred in Kwingillingok by the private operator Kwik Inc. During a recent meeting with Department of Environmental Conservation (DEC), she learned that DEC would require a spring cleanup of the fuel spill and the fuel would not be replenished until the spring barge delivery. The community has enough fuel until that delivery. Contaminated snow has been removed and placed on a liner. It is unknown if the fuel breached the nearby water source. The cost of the cleanup is expected to approach $1 million, and Ms. Garrett believes that the federal government will pay for the cleanup. Chair Pruhs asked if staff has any suggestions for changes to statute, policy or regulations that would assist and improve AEA’s ability for emergency response. Mr. Thayer discussed that the emergency response improvements call for additional funding and a greater financial commitment. He noted that the Legislature has granted AEA approximately $200,000 per year for power emergencies. The average cost per emergency is typically about $45,000. However, the cost for the emergency response in Manokotak last year was $220,000. Mr. Thayer continued that the Circuit Rider staff travel in rural Alaska to conduct training and to respond to emergencies. They have been primarily funded by the Denali Commission, which at its funding high point was $1.2 million. The level now is approximately $75,000, and funds from the State have not been received since 2016. This area needs to be augmented financially, and serious conversations need to occur with the Board and with the Governor’s Office regarding funding levels. Mr. Thayer commented that the federal government is not generous in providing funding that relates to fossil fuels, diesel generators, and tank farms. Chair Pruhs commented that a planned approach is necessary and that there should be a mechanism in which the Legislature replenishes funding each year for emergency responses. Mr. Thayer informed that staff is in conversation with the State’s emergency response services to identify the policies AEA should follow to respond to electrical issues or other power issues that are emergencies due to maintenance rather than emergencies due to national disasters or other designations. Mr. Eledge asked if AEA receives any compensation, in addition to the $200,000 the Legislature Alaska Energy Authority Page 11 of 12 provides for emergencies, for the involvement of the Circuit Rider staff during the emergencies. Ms. Garrett explained that if an emergency is declared, the staff time is charged to the emergency. If no emergency is declared, staff time is charged to the Circuit Rider program. Mr. Eledge commented that the Manokotak emergency has increased the average cost per emergency. He asked if staff has taken a proactive approach to inform the Legislature of the amount of funding that is needed in the Circuit Rider program, as well as in the emergency funds. Mr. Thayer agreed those conversations are occurring, and the Legislature has the list of the challenged communities, which have been further identified per legislative district. Continued dialog is essential in order to make the recommendations for the necessary increase in the funding amount. Mr. Eledge asked if there is benefit to creating a separate category for the villages that go brown or black due to lack of maintenance and sharing that information with the Legislature. Mr. Thayer acknowledged that information is tracked and is shared with the Legislature and the Board. The Board received the maintenance list in December. Mr. Thayer explained that while some communities can purchase and install replacement generators, for example, many communities depend completely on the State for assistance. He commented that it is important to highlight that the legislation states AEA “may” provide in rural Alaska, and does not mandate “shall” provide in rural Alaska. However, for the last 40 years, AEA has assumed that AEA “shall” provide in rural Alaska. Mr. Thayer discussed the multiplier effect that occurs when the power goes out, and sewer and water utilities are impacted as well. Chair Pruhs inquired what happens after the $200,000 of emergency funding has been depleted and from where is the additional funding sourced. Ms. Garrett explained that situation is approaching. If the spring floods are harsh and an emergency is declared, then a Reimbursable Services Agreement (RSA) from Alaska Department of Military and Veterans Affairs (DMVA) will be utilized. Mr. Thayer commented that the AEA construction projects in rural Alaska can multi- task and team up for training time. Chair Pruhs commented that level of consternation should not occur, and the challenge should be addressed straight on. Chair Pruhs expressed his support for AEA to focus on solving the problem rather than being in a position of having to ask another organization to provide funding to solve the problem. There were no additional questions. E. Legislative Update Mr. Thayer discussed the included Bill Tracker status information for the 33 rd Legislature. There are currently more than 20 bills in the Legislature. This amount is higher than normal for AEA. Vice-Chair Kendig requested additional information on HB 390, AIDEA & AEA Gas Offtake Power Agreements. Mr. Thayer indicated that it is within the House Energy Committee, and it is primarily under AIDEA’s domain. He will provide additional information. He noted that HB 388 and HB 394 are also outside of AEA’s domain. AEA has been removed from HB 388, and will probably be removed from HB 394. There were no other questions.