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HomeMy WebLinkAboutAEA Board Meeting Minutes Sep 10 2024Alaska Energy Authority BOARD MEETING MINUTES Tuesday, September 10, 2024 Anchorage, Alaska 1. CALL TO ORDER A-V& ALASKA ENERGY AUTHORITY Executive Director and Secretary -Treasurer Curtis Thayer called the meeting of the Alaska Energy Authority to order on September 10, 2024, at 9:01 am. 2. ROLL CALL BOARD MEMBERS Members present: Clay Koplin (Public Member); Duff Mitchell (Public Member); Adam Crum (Commissioner DOR (Arrived 11:10 am)); Julie Sande (Commissioner DCCED); Ingemar Mathiasson (Public Member); Jenn Miller (Public Member (Arrived 1:00 pm)); Robert Siedman (Public Member); and Tony Izzo (Public Member). A quorum was established. 3. AGENDA APPROVAL - None 4. PRIOR MINUTES — June 20, 2024 MOTION: A motion was made by Mr. Siedman to accept the prior minutes of June 20, 2024. Motion seconded by Mr. Mitchell. Mr. Mitchell noted that the members voting on this motion did not attend the June 20, 2024 meeting. A roll call was taken, and the motion to accept the minutes of June 20, 2024 passed unanimously, with Commissioner Crum and Ms. Miller absent. 5. PUBLIC COMMENTS (2 minutes per person) There were no members of the public online or in -person who requested to comment. 6. WORKING SESSION A. Ethics Training Matthew Stinson from the Department of Law presented "Ethics Act Training" to the Board. B. AEA Overview Curtis Thayer and AEA staff presented AEA Overview presentation to the Board. REDUCING THE COST OF ENERGY IN ALASKA�. �. 813 W Northern Lights Blvd, Anchorage, AK 99503 • Phone: (907) 771-3000 • Fax: (907) 771-3044 • Email: info@akenergyauthority.org C. Share Point Board Access Jennifer Bertolini, AEA Executive Assistant, presented SharePoint Board Access to the Board. Lunch Break at 12:04 pm; Reconvened at 1:00 pm. 7. COMMITTEE REPORTS - None 8. OLD BUSINESS - None 9. NEW BUSINESS A. Resolution 2024-05 Amending AEA Bylaws MOTION: A motion was made by Mr. Siedman to adopt Resolution 2024-05, adopting changes to the AEA Bylaws. Motion seconded by Mr. Koplin. Mr. Thayer requested outside counsel David Grossklaus, Dorsey & Whitney, and AEA counsel Mark Billingsley to comment for discussion purposes on the amendments to the Bylaws contained within Resolution 2024-05. Mr. Grossklaus reviewed the basis of the Bylaws and gave an overview of each of the articles. He discussed the rules for election of the Chair and Vice Chair as shown in Exhibit A. Commissioner Sande expressed her apprehension regarding the specification of quarterly meetings. She requested additional information regarding the change to conduct regular quarterly meetings rather than regular monthly meetings. Mr. Thayer explained that research on other state agencies and corporations revealed that every corporation, except for Alaska Industrial Development and Export Authority (AIDEA), conduct quarterly meetings. He noted that four meetings are the minimum and that special meetings remain subject to the call of the Chair or the Board. Mr. Grossklaus discussed that the number of meetings is dependent on the workload. He recognizes that the Board may need to utilize special meetings and meet more often initially. Furthermore, the subcommittees will meet separately from the full Board. Mr. Billingsley commented on the concern of noncompliance with the Bylaws if the Bylaws mandate monthly meetings and fewer meetings are conducted. Mr. Siedman commented that quarterly meetings have worked well during his state agency experience. He noted that additional meetings were called when needed. Mr. Mitchell expressed support for the Bylaws and remarked that special meetings can be conducted when necessary. Mr. Grossklaus noted that the word "members" is used twice in Article IV. Meetings, Section 3. Special Meetings. The word "members" will be changed to the word "directors" respectively. Alaska Energy Authority Page 2 of 14 Commissioner Crum highlighted Exhibit A and discussed his recent experience at the Alaska Permanent Fund Corporation regarding election rules. He noted there was no secret ballot and the nomination process occurred during the meeting. Commissioner Crum asserted that if the proposed AEA Bylaws are adopted, then it will be necessary to waive the procedures of seven days prior notice and 72 hours open for nominations for the Chair and Vice Chair for elections to proceed today. Commissioner Crum suggested that Chair and Vice Chair elections could be held today prior to adopting the changes to the Bylaws. Mr. Billingsley agreed that holding Chair and Vice Chair elections prior to adopting the changes to the Bylaws would be proper. Mr. Izzo expressed support for the amended Bylaws, including the minimum quarterly meetings and the flexibility to meet more frequently when needed. Ms. Miller expressed support for the amended Bylaws. She suggested that the nominations for Chair and Vice Chair could occur today and the voting on the nominations could occur during an October meeting. Mr. Koplin expressed support for regular quarterly meetings. Mr. Mitchell asked if the Bylaws give the AEA Board the authority, discretion, and leeway to establish additional subcommittees that are not currently outlined. Mr. Billingsley explained that a time -certain ad hoc committee could be created by the Chair and a majority vote without amending the Bylaws. Mr. Grossklaus agreed, and noted that an amendment to the Bylaws is necessary to create a permanent committee. There were no other comments. MOTION: A motion was made by Mr. Mitchell to table Resolution 2024-05 until after the elections. Motion seconded by Mr. Siedman. A roll call was taken, and the motion to table Resolution 2024-05 passed unanimously. B. Election of Officers Mr. Thayer reviewed the rules for today's election of Chair and Vice Chair. MOTION: A motion was made by Mr. Izzo to nominate and elect Mr. Koplin as Chair. Motion seconded by Mr. Duff. No other nominations for Chair were submitted. A roll call was taken, and the motion to elect Mr. Koplin as Chair passed unanimously. Alaska Energy Authority Page 3 of 14 Mr. Thayer turned the meeting over to Chair Koplin. MOTION: A motion was made by Mr. Izzo to nominate and elect Mr. Siedman as Vice Chair. Motion seconded by Mr. Siedman. MOTION: A motion was made by Chair Koplin to nominate and elect Mr. Mitchell as Vice Chair. Motion seconded by Mr. Mitchell. No other nominations for Vice Chair were submitted. Chair Koplin requested members to complete the secret ballot and return it to Mr. Thayer. The motions for the Vice Chair nominations were tied. Mr. Izzo commented that it is important to him that the Chair and the Vice Chair are producing or transmitting power. He reiterated his nomination of Mr. Siedman for Vice Chair. Ms. Miller requested that the nominees for Vice Chair comment on their key priorities and their reasons for wanting to serve as Vice Chair. There was no objection. Mr. Mitchell commented on his experience over the last 20 years with power development, including the Federal Energy Regulatory Commission (FERC) process. He noted that Alaska includes members of Alaska Power Association (APA), American Public Power Association (APPA), and Independent Power Producers (IPP). Mr. Mitchell discussed that before joining AEA's Board, he resigned from any officer and executive director position with APPA. Mr. Mitchell stated that he has worked well with Mr. Siedman during their previous experience at the NHA Legislative Affairs Committee. Mr. Mitchell highlighted his experience and assistance with the IRA tax credits in D.C. He indicated that he has been involved with more than just producing assets that the AEA Board would encounter. Mr. Mitchell expressed his willingness to serve as Vice Chair for AEA officer balance of utility and non -utility interests. Mr. Siedman expressed his willingness to serve as Vice Chair. He discussed his almost 20 years of experience in the energy field. He believes his work at large hydroelectric facilities along the Columbia River and work for the U.S. Army Corps of Engineers has given him a breadth of knowledge regarding renewables. Mr. Siedman noted that he has been in Southeast Alaska for eight years, which has the second largest transmission system in the state. He emphasized the challenges, understanding, and political will of operating a small grid that joins three communities. Mr. Siedman stated that he has nothing against Mr. Mitchell. Mr. Siedman believes Chair Koplin will do an amazing job and believes he could do a good job as Vice Chair. Mr. Mathiasson commented for clarity that this election is being conducted under the old Bylaws, which do not describe how elections are to be held. The Board is choosing to conduct the election under reasonable procedures similar to the new Bylaws, but are not bound by the new Bylaws. Chair Koplin discussed that the rationale for his nomination contemplated the representation Alaska Energy Authority Page 4 of 14 between utilities and independent power producers regarding Railbelt and other issues. Mr. Izzo remarked that considering the previous comments, he may have nominated Ms. Miller for Vice Chair because she is an outstanding representative and problem solver who can complete a power generating project. Mr. Izzo commented that he has nothing against Mr. Mitchell, and feels obligated to follow up that there is a tremendous amount of tension with APA members. Mr. Izzo expressed his concern, and would like the AEA Board to get a clean start. There were no other comments. Chair Koplin requested members to revote. The second vote on the motions for the Vice Chair nominations were tied. Chair Koplin asked Mr. Grossklaus if nominations for Vice Chair can be reopened. Mr. Grossklaus commented that decision is up to the Board. The Board could reopen the nomination process. He recommended that the Board take one more vote before reopening the nomination process. Chair Koplin requested members to revote. The third vote on the motion to elect Mr. Mitchell as Vice Chair passed with four votes for Mr. Mitchell, three votes for Mr. Siedman, and one write-in vote for Ms. Miller. Chair Koplin returned to Item 9A. MOTION: A motion was made by Vice Chair Mitchell to reopen Resolution 2024-05. Motion seconded by Mr. Mathiasson. A roll call was taken, and the motion to reopen Resolution 2024-05 passed unanimously. MOTION: A motion was made by Vice Chair Mitchell to accept Resolution 2024-05, the amended Bylaws, and include the changes discussed by Mr. Grossklaus in today's meeting. Motion seconded by Commissioner Crum. A roll call was taken, and the motion passed unanimously. C. Resolution 2024-06 Banking Services Resolution Chair Koplin requested Mr. Thayer provide an outline of Resolution 2024-06. Mr. Thayer reported that AEA released a competitive request for proposal (RFP) for new banking and custodial services. Two banks responded, and First National Bank Alaska (FNBA) was selected. Resolution 2024-06 authorizes the banking services with FNBA, and authorizes Mr. Thayer and Pam Ellis, AEA Controller, as the primary signers on the bank accounts. Mr. Thayer noted that he and Ms. Ellis are the primary signers of AEA's current accounts at Key Bank. The total cost of the Alaska Energy Authority Page 5 of 14 FNBA contract is not to exceed $250,000 per year. He discussed that there is upwards of approximately $80 million on deposit across 16 accounts, including repurchasing accounts. Mr. Thayer explained that some of the interest earned on the accounts is returned to the State of Alaska per statute. MOTION: A motion was made by Vice Chair Mitchell to accept Resolution 2024-06 Banking Services Resolution. Motion seconded by Mr. Siedman. A roll call was taken, and the motion to approve Resolution 2024-06 passed, with Ms. Miller absent. D. Resolution 2024-07 Federal Grant Awards Chair Koplin requested Mr. Thayer discuss Resolution 2024-07. Mr. Thayer explained Resolution 2024-07 creates a policy that requires AEA Board approval to apply for and accept grants that are greater than $10 million. The previous AEA Board provided input to this resolution. However, they chose not to advance the resolution, since the new Board was to be created. Mr. Thayer explained that all federal awards must obtain federal receipt authority from the Office of Management and Budget (OMB), the State Legislature, and the Governor. MOTION: A motion was made by Commissioner Crum to approve Resolution 2024-07 requiring AEA Board approval to apply for and accept federal grants over $10 million. Motion seconded by Mr. Siedman. Commissioner Crum requested to add language that the proposed grant applications are directly submitted to the Budget and Audit Committee, as well as to the full Board. Mr. Siedman agreed with Commissioner Crum. He asked for counsel's opinion if this policy is in line with best practices. Mr. Billingsley noted that he has not researched the practices of other agencies. Mr. Grossklaus commented that he is also unaware of other agencies practices. He believes the proposed resolution is an appropriate practice for these purposes. Mr. Siedman noted that as the second of the motion, he would be willing to entertain an amendment. Commissioner Crum requested a friendly amendment to the motion, adding that the Budget and Audit Committee is notified of any applications going forward. The friendly amendment was seconded. There was no objection. Mr. Thayer requested clarification that the friendly amendment should be inserted as follows within the first sentence of Section 1: Application for, and acceptance, of all grants more than $10,000,000 shall require notification to the Budget and Audit Subcommittee, as well as requiring AEA Board approval. Alaska Energy Authority Page 6 of 14 Commissioner Crum agreed. There was no objection to the friendly amendment. He commented that this resolution was discussed with the previous Board. It provides a clean process for the higher dollar grants while allowing staff the agility to continue to respond. A member asked Mr. Thayer to explain the previous Board's process. Mr. Thayer explained that AEA staff would notify the previous Board of grant applications, but there was no consistent policy. The member asked for the current process regarding grants under the $10 million threshold. Mr. Thayer explained that the application for and acceptance of grants at or below $10 million remain at the discretion of the AEA Executive Director and staff. A roll call was taken, and the motion to approve the amended Resolution 2024-07 passed, with Ms. Miller absent. E. Resolution 2024-08 - Authorizing acceptance of GRIP 3, Round 1 Grant Award Mr. Thayer discussed that Resolution 2024-08 authorizes the acceptance of the GRIP Federal Award for the Railbelt Innovative and Resiliency Project. The project includes a subsea HVDC transmission line and two battery energy storage systems (BESS) for a total of $413 million. The federal cost share is $206.5 million. The match required is $206.5 million. He noted that AEA, through its utility partners, have pledged $40 million of the match and the State has put forth $12.7 million. Discussions with the Legislature are ongoing regarding funding the balance of the match over the eight -year project schedule. Mr. Thayer explained that AEA staff, primarily Jim Mendenhall, has negotiated the terms and conditions of the grant agreement with the US Department of Energy (DOE). The grant agreement has been reviewed by AEA's legal counsel. The memorandum from Dorsey & Whitney is attached to the Resolution. The grant application is also attached to the Resolution, and Mr. Thayer has the file containing the back-up information with him. Mr. Thayer explained that if the Board accepts the grant award, he will sign the contract with DOE and the eight -year project timeframe will begin. Mr. Thayer informed that Mr. Mendenhall and Mr. Grossklaus are available today to answer any questions. There were no questions. MOTION: A motion was made by Vice Chair Mitchell to accept Resolution 2024-08, authorizing acceptance of the GRIP 3, Round 1 Grant Award. Motion seconded by Mr. Siedman. Mr. Izzo declared that he will abstain from voting due to the perception of a conflict. MEA members are likely to benefit, even though MEA could not afford this project without the federal funding and State support. The project will facilitate additional clean energy across the Railbelt and will benefit members through lower rates. Alaska Energy Authority Page 7 of 14 Commissioner Crum commented that the first sentence on page two of the project overview encapsulates the vision, and he is proud to work with AEA on this fantastic application and project. He believes this project has made the Governor's Energy Taskforce successful and opens the possibility for multiple generation projects around the state. He expressed his support and looks forward to this being the first phase of large-scale infrastructure upgrades throughout the state. Vice Chair Mitchell agreed with Commissioner Crum's comments. He reiterated that this is the first of many more transmission lines and additional federal investments. Mr. Siedman commented that there is currently only one transmission path from Homer to Fairbanks. He noted that other parts of the United States have multiple distribution and transmission lines that contribute to grid resiliency and reliability. Mr. Siedman echoed the comments that this project is a very good first step. Mr. Siedman asked for additional information on what would happen if the State match cannot be secured. Mr. Thayer explained that question was discussed during the application process. He noted that the project would stop when the money was spent. Without speaking for the Governor and the Legislature, Mr. Thayer expressed that there is tremendous support for this project moving forward. Mr. Mendenhall explained that if the project is 50/50 with the federal government, there is no claw back if the project stops. He noted that this provision was reviewed by staff and counsel. Chair Koplin expressed his support for this exciting project and believes it will benefit the entire state. There were no other comments. A roll call was taken, and the motion to approve Resolution 2024-08 passed, with Ms. Miller absent and Mr. Izzo abstaining. F. Resolution 2024-09 - Accepting Solar For All Grant Award Mr. Thayer explained that Resolution 2024-09 is acceptance of a $62.5 million grant received from the Environmental Protection Agency (EPA) Greenhous Gas Reduction Fund Solar for All Grant program. AEA will focus on residential -serving community solar projects and Alaska Housing Finance Corporation (AHFC) will focus on residential rooftop solar projects on low-income housing. Grant negotiations, including the terms and conditions, have been completed and reviewed by counsel. Mr. Thayer indicated that Josie Hartley, AEA, spearheaded the effort and the competitive application process. She is available to answer any questions. There were no questions. MOTION: A motion was made by Commissioner Crum to approve Resolution 2024-09 Accepting the Solar For All Grant Award. Motion seconded by Vice Chair Mitchell. Alaska Energy Authority Page 8 of 14 Mr. Siedman asked if an additional $62.5 million grant was received in Alaska. Mr. Thayer agreed that there were two $62.5 million grants received. Resolution 2024-09 is one of the grants and the other recipient was AHFC with Tanana Chiefs. A member asked for confirmation that this grant has no associated match. Mr. Thayer agreed that there is no required match on this grant. Mr. Mathiasson recused himself from the vote to avoid any misconception. There were no other questions. A roll call was taken, and the motion to approve Resolution 2024-09 passed, with Ms. Miller absent, Mr. Mathiasson and Mr. Siedman abstaining. G. Resolution 2024-10 - Transfer of Craig-Klawock Tie Line Mr. Thayer explained that AEA found out recently that the Craig to Klawock (C-K) power tie line was still owned by AEA. Resolution 2024-10 provides for the transfer of ownership of the C-K line to Alaska Power & Telephone Company (AP&T). This is in the best interest of all parties. The C-K intertie is fully depreciated, and retaining ownership offers no revenue benefit to AEA. Additionally, AEA is exposed to potential liabilities associated with this ownership and AEA lacks the necessary funds to continue maintaining or upgrading the C-K lines. Mr. Thayer discussed that AP&T, with its existing role in providing power to both Craig and Klawock, has the resources, knowledge, and experience necessary to maintain and respond to emergencies involving the C-K line. Mr. Thayer noted that Bill Price, AEA, is available to answer any questions. Commissioner Crum recommended that Resolution 2024-10 and Resolution 2024-11 are discussed together and presented as one motion. There was no objection. H. Resolution 2024-11 — Transfer of Shungnak-Kobuk Tie Line Mr. Thayer explained the transfer of the Shungnak-Kobuk (S-K) tie line is similar to the C-K line transfer. The S-K line would be transferred to the Alaska Village Electric Cooperative (AVEC), which serves the communities of Shungnak and Kobuk. Mr. Thayer noted that in order to facilitate maintenance of the line, AEA obtained easements from NANA, the owner of the land that the line crosses, and as part of the transfer agreement, AEA will transfer the easement to AVEC with NANA's consent. Mr. Thayer discussed that this transfer is in the best interest of all panties for the same reasons as the C-K line transfer. He acknowledged that there is an additional tie line transfer that will come before the Board at a later meeting. MOTION: A motion was made by Vice Chair Mitchell to approve Resolution 2024-10, and amend the resolution to include Section 3. The transfer of AEA's interest in the C-K tie line project to AP&T shall be conditioned to the extent practicable on AP&T providing open access to the C-K tie line, and to approve Resolution 2024-11, and amend the resolution to include Section 3. The transfer of AEA's interest in the S-K tie line project to AVEC shall be Alaska Energy Authority Page 9 of 14 conditioned to the extent practicable on AVEC providing open access to the S-K tie line. Motion seconded by Ms. Miller. Vice Chair Mitchell commented that Alaska is one of the few states that does not have an open access law. He wants to ensure that future tie-ins are provided open access to the extent practicable. He believes open access is a good forward practice. Mr. Izzo requested Mr. Thayer to give AEA's perspective on Vice -Chair Mitchell's comments. Mr. Thayer indicated that staff discussed Vice -Chair Mitchell's comments prior to the meeting and found that adding Section 3. does not hinder the transfer of the two tie lines. Mr. Izzo expressed his support; however, he believes that open access should be reviewed on a case -by -case basis. Open access cannot be allowed to harm or present a negative reliability impact to the primary users of the line. There were no other comments. A roll call was taken, and the motion to approve Resolution 2024-10, as amended, and Resolution 2024-11, as amended, passed unanimously. I. Resolution 2024-12 — Amendment to Bond Resolution Mr. Thayer provided background information regarding Resolution 2024-12, Amendment to Bond Resolution 2024-02. He indicated that this resolution was reviewed by counsel, and he requested Mr. Grossklaus to provide additional information. Mr. Grossklaus agreed with Mr. Thayer's description and added that after the bondholders approve the amendment, staff will return to the Board for an amendment to the Bond documents to reflect the additional uses. There were no questions. MOTION: A motion was made by Vice Chair Mitchell to approve Resolution 2024-12. Motion seconded by Commissioner Crum. A roll call was taken, and the motion to approve Resolution 2024-12 passed, with Ms. Miller absent and Mr. Izzo abstaining. Mr. Thayer expressed appreciation to Mr. Grossklaus and Mr. Billingsley for their efforts regarding the previous resolutions. J. Resolution 2024-13 — Authorizing Purchase of Capacity on Battery Energy Storage Systems (BESS) — (pending) Mr. Thayer indicated that Resolution 2024-13 is not requested to move forward today. He highlighted that the authorization relates to the $28 million bonding balance. Work is ongoing with the utilities to develop a term sheet capacity agreement regarding the BESS usage. Vice Chair Mitchell asked Mr. Thayer if the utility agreement will be available at the next AEA Alaska Energy Authority Page 10 of 14 meeting. Mr. Thayer agreed. There were no other questions. K. Meeting Schedule (Quarterly — July, October, January, April) Mr. Thayer discussed the provided memorandum suggesting the possible quarterly meeting schedule through July 2025. Commissioner Sande requested additional time to review the proposed schedule to ensure that the Commissioners' meetings that cannot be delegated do not overlap with AEA meetings. Vice Chair Mitchell indicated that Thursday meetings work better for him; however, he will adjust his schedule accordingly. Commissioner Crum agreed with Commissioner Sande's comments, and suggested that the October meeting date is scheduled today, and that the remaining meeting dates are approved at the October meeting. Discussion occurred, and without objection, the next meeting was scheduled for Thursday, October 24, 2024 for two hours. L. Sub -committee Assignments (Budget & Audit, and Personnel) MOTION: A motion was made by Commissioner Crum to elect by unanimous consent Commissioner Crum, Mr. Siedman, and Ms. Izzo to the Budget & Audit Subcommittee, and to elect by unanimous consent Ms. Miller, Commissioner Sande, and Mr. Izzo to the Personnel Subcommittee. Motion seconded by Vice Chair Mitchell. A roll call was taken, and the motion passed unanimously. 10. DIRECTORS COMMENTS A. AEA FY 2025 Budget Mr. Thayer noted the FY25 Budget was discussed earlier in the meeting during the AEA Overview presentation. There were no questions. B. Audit Update — process Mr. Thayer discussed that the audit is in process and is on schedule. The final draft of the financial statements will be reviewed at the October Board meeting. There were no questions. C. National Electric Vehicle Infrastructure (NEVI) Plan Mr. Thayer indicated that the NEVI Plan is included in the packet for informational purposes. The plan went out for public comment and has been submitted. Mr. Thayer reported that the previous Alaska Energy Authority Page 11 of 14 NEVI Plan was recognized by the Federal Highway Administration as one of the best plans in the country. There were no questions. D. Denali Commission Awards Mr. Thayer informed that AEA was successful in receiving three Denali Commission Grant Awards totaling approximately $3 million for distribution upgrades and a rural power system upgrade. There were no questions. E. Community Outreach Mr. Thayer reviewed the community outreach look -back table provided in the Board packet. There were no questions. F. Articles of Interest Mr. Thayer highlighted the articles of interest included in the Board packet. Mr. Thayer indicated that staff provides Board members with a weekly status report. Mr. Thayer noted that the weekly status report is administratively burdensome. He asked Board members for feedback regarding the content and timing of the information. Commissioner Sande suggested that it would be helpful to have biweekly highlights or bullet points of important Board items. Mr. Izzo agreed with Commissioner Sande, and recommended that the reports are submitted biweekly or monthly, with exceptions provided, as necessary. He recognized the extensive level of detail contained in the weekly status reports and agreed the weekly reports pose an administrative burden to staff. Mr. Siedman agreed with Mr. Izzo, and recommended that the frequency of reports is determined by the Executive Director. Vice Chair Mitchell agreed with the previous comments that a status report on a weekly basis is not necessary. He did not suggest a report schedule. Vice Chair Mitchell believes it is important, though, for Board members to be made aware of important issues that arise unpredictably. He expressed appreciation to staff for providing well-informed reports, and believes staff time is better spent doing theirjob rather than reporting on their job. Chair Koplin summarized the Board's consensus for staff to use its discretion for providing Board reports; however, staff is to promptly report important issues to Board members. There were no other questions or comments. G. Next Regularly Scheduled AEA Board — TBD Alaska Energy Authority Page 12 of 14 Chair Koplin reiterated that the next regularly scheduled AEA Board meeting is on Thursday, October 24, 2024. MOTION: A motion was made by Vice Chair Mitchell to enter into executive session to discuss confidential information related to the FY26 budget, which the immediate disclosure of would have an adverse impact on the Authority. This is supported by the Open Meetings Act (AS 44.62.310), which allows a board to consider confidential matters in executive session. In this case, the Board believes that these are subjects, which would have an adverse effect upon the finances of AEA and are protected by law due to the rules protecting personal privacy and certain business information. Motion seconded by Mr. Siedman. A roll call was taken, and the motion to go into executive session passed, with Commissioner Sande absent. 11. EXECUTIVE SESSION: 3:12 pm — Discuss confidential information related to the FY26 budget. The Board reconvened its regular meeting at 4:06 pm. Chair Koplin advised that the Board did not take any formal action on matters discussed while in Executive Session. 12. BOARD COMMENTS Mr. Izzo expressed congratulations to Chair Koplin. He commented that AEA is operating at the highest level during his 20 years' involvement with AEA. This is reflected in the balance sheet, in Mr. Thayer's leadership, and in the AEA team. Mr. Izzo offered sincere thanks to Mr. Thayer and the AEA team. Mr. Mathiasson commented that this was a good first meeting. He expressed appreciation for all the work and effort. Commissioner Crum expressed appreciation to the staff and understands this will be a big growth year with many opportunities. He looks forward to working with Board members and staff to power Alaska. Mr. Siedman reiterated the compliments to AEA's impressive staff. He noted that for him, this first meeting contained an enormous amount of information. Mr. Siedman expressed appreciation for the presentations and he will continue to learn. He congratulated Chair Koplin and Vice Chair Mitchell. Vice Chair Mitchell believes that the Governor did an excellent job of interviewing and selecting Board members, who share the same goal of lowering the cost of energy and optimizing Alaska's resources. He complimented the staff and looks forward to working together. Alaska Energy Authority Page 13 of 14 Mr. Thayer expressed appreciation to Jennifer Bertolini, AEA, for her diligence in preparing the documents. Chair Koplin expressed appreciation to Board members for their confidence in electing him Chair. He welcomed suggestions and constructive criticism regarding ways to improve the meeting. He is excited for the continued work of the Board and for staff's contribution on behalf of Alaskans. Chair Koplin reiterated the importance of community outreach, staff updates, securing grants, and negotiating the NICRA rate. He recognized Ms. Bertolini for providing a well -organized packet and linkable agenda. Chair Koplin thanked the members who attended today's meeting remotely. 13. ADJOURNMENT There being no further business of the Board, the AEA meeting adjourned at 4:12 pm. ``�%tillilf)jl/ �NERG CrGpRP013gT Curtis W. Thayer, Secretary = ¢ : SEAL " f 1978,,.• Alaska Energy Authority Page 14 of 14