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HomeMy WebLinkAbout2021.12.10 BPMC.ExecutedMinutes ___________________________________________________________________________ BPMC Minutes 12/10/21 Page 1 of 10 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) REGULAR MEETING AGENDA December 10, 2021 1. CALL TO ORDER Chair Izzo called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:18 a.m. A quorum was established. 2. ROLL CALL (for Committee members) Tony Izzo (Matanuska Electric Association [MEA]); John Burns (Golden Valley Electric Association [GVEA]); Lee Thibert (Chugach Electric Association [CEA]); Brad Janorschke (Homer Electric Association [HEA]); Curtis Thayer (Alaska Energy Authority [AEA]); and Rob Montgomery (City of Seward). 3. PUBLIC ROLL CALL (for all others present) Betty Caudle (phone) (Accu-Type Depositions); Salina Bearden, Jennifer Bertolini, Bryan Carey, Dona Keppers, David Lockard, Kirk Warren (AEA); Amy Fenerty (phone) (Aldrich CPAs & Advisors; Joel Paisner (Ascent Law Partners); Matt Clarkson (phone), Sherri Highers (phone), Russell Thornton, Jeff Warner (CEA); Stefan Saldanha (Department of Law); Dan Bishop (phone), Ron Woolf (phone), Pete Sarauer (phone) (GVEA); Bob Day, Larry Jorgenson (phone), Andy Patrick (phone) (HEA); Kirk Gibson (McDowell Rackner Gibson, PC); David Pease, Matt Reisterer (phone), Tony Zellers (MEA); and Bernie Smith (Public). 4. AGENDA APPROVAL MOTION: A motion was made by Mr. Burns to approve the agenda. Motion seconded by Vice-Chair Janorschke. The motion to approve the agenda passed unanimously. 5. PUBLIC COMMENTS - None 6. APPROVAL OF MEETING MINUTES – October 1, 2021 MOTION: A motion was made by Vice-Chair Janorschke to approve the Minutes of October 1, 2021. Motion seconded by Mr. Burns. Mr. Burns expressed appreciation to Jennifer Bertolini, AEA, for forwarding the Minutes to the Committee members in advance of the meeting. The motion to approve the Minutes of October 1, 2021 passed unanimously. 7. NEW BUSINESS A. FY21 BPMC Audited Financial Statements Chair Izzo requested Dona Keppers, AEA CFO, present the FY21 BPMC Audited Financial Statements. Ms. Keppers introduced Amy Fenerty, Aldrich CPAs & Advisors, who discussed the ___________________________________________________________________________ BPMC Minutes 12/10/21 Page 2 of 10 FY21 BPMC Audited Financial Statements. Ms. Fenerty expressed appreciation to Ms. Keppers and Salina Bearden, AEA, for providing the required information for the audit. Ms. Fenerty reviewed the Independent Auditor’s Report and advised that a clean and unmodified opinion was issued. This is the highest form of assurance that can be received for the special-purpose financial statements of the Operating and Revenue Funds. Ms. Fenerty discussed that management is responsible for the financial statements, including internal controls related to their preparation and presentation. The auditors are responsible for expressing an opinion based on their audit procedures. Ms. Fenerty highlighted the Statements of Assets and Liabilities for FY20 and FY21. She noted that the total assets increased at the end of FY21. This is primarily related to timing, as the balances fluctuate year-to-year based on payments made and payments received. Ms. Fenerty discussed the Statements of Revenues and Expenses. She explained that revenues are primarily based on the requirements for the budgeted expenditures and capital activity. Operations and Maintenance expenses were under budget due to some projects being delayed. There was an increase in actual expenditures between FY21 and FY20, primarily due to the completion of Battle Creek operations that were previously under construction. Ms. Fenerty explained that Debt Service and Capital Reserve Contributions are based on estimated amounts and the actual amounts can fluctuate, as shown in the report. Capital Activity was less than budgeted and was also less than FY20 actual amounts. The total expenses for FY21 were budgeted at $26.2 million and the actual expenses for FY21 were $23.1 million. The actual expenses for FY20 were at $22.4 million. Ms. Fenerty indicated that page five shows the Statements of Cash Flows that related to the cash inflows and payables. Ms. Fenerty discussed the notes to the financial statements are listed on page six and provide information on the history of the BPMC. It has been updated to include the Battle Creek Diversion Project and additional disclosures for 2021 activity on the SSQ Line. Note 2 provides details on cash and cash equivalents. Note 3 provides information for major contracts and agreements. Note 4 shows details for related party transactions. Note 5 conveys the surplus refund details. Note 7 indicates the subsequent events for calling of the fourth series and sixth series bonds. Additional details regarding the statement of expenses are shown on page 11. Mr. Thibert expressed appreciation for the work of the accounting team in maintaining transparency and the result of a clean audit. Chair Izzo echoed the comments of appreciation. There were no questions. MOTION: A motion was made by Mr. Thayer to accept the FY21 BPMC Audited Financial Statement as presented. Motion seconded by Mr. Burns. Chair Izzo asked Ms. Keppers if any other information needed to be presented. Ms. Keppers offered no additional information and extended appreciation to Ms. Fenerty. The motion to accept the FY21 BPMC Audited Financial Statement as presented passed unanimously. B. FY21 Refund of Surplus Chair Izzo requested that Ms. Keppers give the presentation. Ms. Keppers reviewed the included spreadsheet entitled BPMC FY21 Refund of Surplus. The total Bradley Lake utility refund is ___________________________________________________________________________ BPMC Minutes 12/10/21 Page 3 of 10 $847,782.13. The O&M refund portion is $727,298.38. The R&C refund portion is $120,483.75. The total Battle Creek participating utility refund is $2,308,603.38. The Battle Creek O&M refund portion is $2,139,501.00. The Battle Creek R&C refund portion is $169,102.38. Ms. Keppers indicated that Ms. Fenerty referenced the notes of page 10 of the Audit Report that further elaborates on this surplus. There were no questions. MOTION: A motion was made by Vice-Chair Janorschke to approve the $847,782.13 Bradley Lake Utilities Refund and $2,308,603.38 Battle Creek participating Utilities refund as presented. Motion seconded by Mr. Thibert. The motion to accept the FY21 BPMC Audited Financial Statement as presented passed unanimously. C. 2022 Proposed BPMC Meeting Dates Chair Izzo stated that he expects a special meeting to occur in early January at the call of the Chair regarding an anticipated budget amendment. Chair Izzo indicated that no action is needed on the meeting dates and that they will be posted. There were no objections. D. Resolution 21-03 Dixon Diversion REF Application Ms. Bertolini advised that the content within the Committee packet contains typographical errors that will be corrected in the finalized version, if approved. The title should be Resolution No. 21- 03, rather than Resolution No. 2021-03. The heading in the middle of page one should be BPMC Resolution No. 21-03, rather than BPMC Resolution No. 21-01. The footer should read BPMC Resolution No. 21-03, rather than BPMC Resolution No. 21-01. Mr. Thayer discussed that AEA oversees the Renewable Energy Fund process and follows the very strict statutes. Mr. Thayer requested to abstain from any discussion or voting on this resolution because of AEA’s involvement. Mr. Thibert stated that he is a member of the Renewable Energy Committee. He believes it is appropriate that he abstain from voting. MOTION: A motion was made by Mr. Burns to approve Resolution 21-03 – Dixon Glacier REF Application as presented. Motion seconded by Mr. Montgomery. Chair Izzo reiterated that the corrected titling of Resolution 21-03 will be reflected in the final document. Vice-Chair Janorschke extended the invitation to CEA to reach out to any of the participating utilities if information is needed. Mr. Burns extended the same invitation. He complimented and applauded AEA for moving forward with the application for the project that has the potential of adding significant renewables into the system. A roll call vote was taken, and the motion to approve Resolution 21-03 – Dixon Glacier REF Application as presented passed, with AEA and CEA abstaining. ___________________________________________________________________________ BPMC Minutes 12/10/21 Page 4 of 10 8. OLD BUSINESS A. By-Law Amendment – Resolution 21-01 Adoption of Amended and Restated Bylaws Chair Izzo requested that Kirk Gibson, McDowell, Rackner & Gibson, discuss the Amended and Restated Bylaws. Mr. Gibson indicated that work on the details of this resolution has been ongoing for quite some time. He provided contextual background that CEA and ML&P entered into a transaction to buy a certain asset in 2018. As a result of that transaction, the voting parameters and percentages were addressed. In Resolution 20-04, the BPMC amended the Bylaws with respect to the voting aspect. Subsequently, BPMC Counsel asked for the opportunity to review the Bylaws. BPMC Counsel worked with Department of Law (DOL) to advise statutory updates. The Amended and Restated Bylaws in front of the Committee today is the result of that work and is ready for approval. There were no questions. MOTION: A motion was made by Vice-Chair Janorschke to approve Resolution 21-01 – Adoption of Amended and Restated Bylaw as presented. Motion seconded by Mr. Thibert. Mr. Thibert expressed appreciation to Mr. Gibson and to the Committee for their efforts during this process of review. The motion to approve Resolution 21-01 – Adoption of Amended and Restated Bylaws as presented passed unanimously. B. Required Project Work Letter to LAW Chair Izzo welcomed Joel Paisner, Ascent Law Partners, to provide information on the Required Project Work Letter to LAW. Mr. Paisner indicated that on August 20th, BPMC Counsel sent a letter to DOL requesting review and confirmation regarding shovel-ready projects within the definition of required project work in the Power Sales Agreement. Additionally, the request was made to confirm the BPMC view that the R&R project list also fit into the definition of required project work. On November 10th, Counsel received a letter from DOL regarding some of the work on the Sterling to Quartz Creek. This was not a complete list and Counsel is continuing to work with DOL to obtain their view and confirmation. A meeting is scheduled next Wednesday to further that discussion. Mr. Gibson commented that the communications with DOL are going well. Understanding the workload of the DOL, Counsel requested that determinations be provided as they are confirmed, rather than waiting until all determinations have been made. This is the timing process that is being followed because of the importance of moving forward on these projects. Mr. Gibson noted that progress is being made. Counsel has provided all supplemental information that DOL has requested. He believes the meeting next week will be productive. Mr. Burns expressed appreciation for the efforts and exchange with DOL on behalf of BPMC. He offered his assistance in order to facilitate the process. Vice-Chair Janorschke echoed appreciation for the efforts of DOL, Counsel, and AEA. He emphasized the importance of facilitating the requests for additional information to ensure all parties have the same information. Vice-Chair Janorschke believes that this provides a unique opportunity to convey the full picture of the BPMC’s goals and vision. ___________________________________________________________________________ BPMC Minutes 12/10/21 Page 5 of 10 Chair Izzo thanked Mr. Gibson and noted that follow-up and an action item are slated for later in the meeting. There were no other questions. 9. OPERATORS REPORT Chair Izzo requested that Mr. Day present the Operator Report. Mr. Day welcomed Mr. Montgomery and reiterated the invitation for visitors to come to Bradley Lake. He believes that the BPMC is one of the most functional committees he has served on. Mr. Day reviewed the Operator Report for December 10, 2021. The unit statistics are listed on the first page. The new building activity is progressing, and construction is slated to begin next summer. The hope is the work will be included in the required project work category. The repair of the bridges is complete. The fire system inspection was completed and passed in November, but there is still more work to be addressed for the fire system. Mr. Day discussed that Battle Creek was shut down in October when the flows diminished. A big storm was anticipated at the end of October and Battle Creek was reopened on October 30th, and successfully captured 677 ac-ft. This equated to approximately $66,000. The second shut down on Battle Creek occurred on November 5th. During the second operation, there was a minor differentiation between the calculated flow and the flow meter flow. The equation of the calculation was inaccurate on the low-flow curve. The numbers have since been revised and the minor corrections have been made. Mr. Day advised that the 10-year GIS inspection on the SF6 was accomplished. The gas analysis portion was not completed due to complications with ABB’s test equipment. ABB is scheduled to return during the annual outage in March to complete the work. The plant must be switched into a different mode during the GIS inspection. Mr. Day described the plant outage that occurred during the inspection when the UPS inverter switched to house power resulting in a total plant blackout. All service was restored within an hour. Mr. Day indicated that the new hire operator candidate has accepted the fulltime position and is expected to begin at the end of December. The new hire comes from Cordova and has extensive hydro experience. Mr. Day discussed that the Battle Creek Fish Surveys are complete. The final version of the D Hittle Report was disseminated to Vice-Chair Janorschke’s Subcommittee and is available to other members, upon request. Mr. Day noted that there was a short outage in November to clean up the residual oil on Unit 2. There were no major concerns. There have been issues with temperature control within the microwave hut due to extreme cold weather. Operations have been running short staffed, as one of the operators incurred an on-the-job injury and is on light duty, one operator is on medical leave, and staff is down one operator due to retirement. There has been approximately two to three feet of snow at Bradley Lake, and it has been challenging to keep the runway clear. Mr. Day announced his plans to retire on January 14, 2022. This is his last BPMC meeting. He expressed appreciation to the Committee. Mr. Day discussed the picture included in the report of the Battle Creek Diversion. He noted that the report includes a link showing the Bradley duck pond, the runway, and Kachemak Bay. Mr. Day explained the graph shown in the report indicating the two units loads spanning approximately five days. Mr. Day noted that the lake level is substantially lower than is normal for this time year. The inflows have been fairly normal, but the around-the-clock average of 60 MW to 70 MW is affecting the lake level. ___________________________________________________________________________ BPMC Minutes 12/10/21 Page 6 of 10 Vice-Chair Janorschke commented that Mr. Day has done an excellent job and has been an amazing resource during his tenure since 2006, and he will be missed greatly. Vice-Chair Janorschke thanked Mr. Day for his efforts. Mr. Thibert congratulated Mr. Day on his retirement and believes he has been a valuable employee to Bradley Lake and a valuable asset to the Railbelt. Mr. Montgomery congratulated Mr. Day on his retirement. He appreciated the welcome to the Committee and will act on the invitation to visit Bradley Lake. Mr. Burns echoed the sentiments of congratulations. He expressed appreciation to Mr. Day for his professionalism, integrity of the reports, and good sense of humor. Mr. Thayer thanked Mr. Day and recounted the experience of visiting Bradley Lake and the education Mr. Day gave regarding the project. Chair Izzo offered sincere best wishes to Mr. Day. 10. O&D REPORT Chair Izzo welcomed Russ Thornton, CEA, to present the O&D Report. Mr. Thornton, on behalf of the O&D Committee, expressed appreciation to Mr. Day for being a critical member of the team. He noted that Mr. Day will be greatly missed. The O&D Committee met via teleconference and in-person on November 15th. All members attended, and the primary focus of the meeting included issues that Mr. Day reviewed during the Operator Report. Mr. Thornton gave an overview of the additional topics discussed. The LIDAR survey that was completed used a different zero water value than the previous report, which resulted in an error in the volume of the reservoir. Contact will be made with the engineer to reset the value to the same “project zero” that was provided in the previous data. Discussion occurred at the O&D Committee meeting regarding the SQ Line rebuild. The State is getting direction from the BPMC on sole sourcing the design work to CEA. In the month of November, the amount of energy delivered to Bradley Lake participants was 29,719 MWh. The inflow was 3,704 ac-ft lower than the forecast. This is the fifth month that the actual inflows were lower than the forecast. Bradley Lake is 89,657 ac-ft below the forecast for the water year. Updates to the usage forecast were revised two months ago and additional revisions may need to occur. Mr. Thornton reviewed the assignments that have been made to O&D members. HEA is working with EPS on a voltage study that should be completed early next year. After the voltage study is completed, the oscillation study results can be implemented at Bradley Lake. CEA continues to investigate a modification to the BDS system to automate HEA wheeling of power to northern Bradley Lake participants. A scope and schedule are anticipated to be finalized within the next month. Additionally, CEA continues their work on the audit of Bradley Lake usage. More information is expected to be reported at the next BPMC meeting. HEA continues to work with DOWL to resolve the flowmeter issue. The design was completed, and the construction was postponed until next year when the weather permits access. HEA’s newest assignment involved investigating the options to automate Battle Creek measurements and ICCP reporting. Emerson work is necessary to convert the data so that it will be accessible from ICCP. This item is anticipated to be included in next year’s budget. ___________________________________________________________________________ BPMC Minutes 12/10/21 Page 7 of 10 Chair Izzo commented on the good report. He looks forward to the closure of the CEA assignment regarding the audit of participating Bradley usage. He noted this assignment is getting close to being a year old. Mr. Thornton advised the assignment is making progress and will be completed soon. There were no additional questions. 11. COMMITTEE REPORTS A. Budget to Actual Chair Izzo requested that Ms. Keppers present the Budget to Actual Report for the period ending August 31, 2021. Ms. Keppers advised that the Report has been reviewed by the Budget Subcommittee. The FY21 Budget for the Bradley Lake Capital Purchases Not Funded by R&C Fund shown on Schedule A was less than the FY22 Budget. This is primarily due to the designated project work that will occur during this fiscal year. The Bradley Lake O&M expenditures on Schedule B were over budget. The primary drivers are in labor, contractual, and indirect costs. The increase in activity in the summer is anticipated. The activity is expected to decrease in the fall and winter months. Ms. Keppers directed the Committee’s attention to Schedule D, R&C Fund Disbursements and Repayments located on page seven. The R&C Fund projects are under budget. New projects are beginning, and costs remain low. An increase in activity is expected throughout the fiscal year. Ms. Keppers discussed Schedule E, Battle Creek Capital Purchases. The actual numbers are currently low and additional purchases are expected to come later in the fiscal year. The O&M Budget to Actual Expenses shown on Schedule F are under budget. Schedule H reflects the SSQ Line Capital Purchases. The design and permitting for the construction have recently begun. Schedule I shows the SSQ Line O&M Budget to Actual. The activity is minimal at this time of the year. There were no questions. B. Special Committee on Required Project Work Resolution 21-02 Upgrading and Improving the Deliverability of Power Project Chair Izzo indicated that Vice-Chair Janorschke is leading the effort on the Special Committee on Required Project Work. Vice-Chair Janorschke informed that since the previous BPMC meeting on October 1st, the Special Committee on Required Project Work has been very busy. Two Subcommittees within the Special Committee have been established. The Engineering Subcommittee is facilitated by Dan Bishop, GVEA, and the Finance Subcommittee is facilitated by Sherri Highers, CEA. The Special Committee held its first virtual meeting on October 13th with participation from all utilities. A letter was sent to the DOL dated October 21st. Vice-Chair Janorschke noted that the Engineering Subcommittee and the Finance Subcommittee have been working diligently. He requested that Mr. Bishop and Ms. Highers provide an overview of the progress made to-date. Mr. Bishop expressed appreciation to those who participated in the Subcommittee and to Vice-Chair Janorschke and others for their support and guidance during the initial stage in understanding the nuances of the Bradley Lake Project. Mr. Bishop discussed that he took the list of projects that was included in the letter to DOL, the list from AEA’s shovel ready projects, and combined them with a list of projects obtained from polling the utilities, and received consensus by November 4th on which projects were priorities to forward to the Finance Subcommittee. ___________________________________________________________________________ BPMC Minutes 12/10/21 Page 8 of 10 Mr. Bishop noted that he and a colleague worked with the proposed list to develop a proposed project timeline and proposed cash flow for the capital improvement. This information was forwarded to the Finance Subcommittee. Mr. Bishop hopes that the Engineering Subcommittee has completed the expectations of Mr. Janorschke. He noted that they are standing by for further tasks. There were no questions. Vice-Chair Janorschke requested that Ms. Highers provide an update on her activities. Technical difficulties were encountered, and Vice-Chair Janorschke indicated that he would outline her efforts. He noted that Ms. Highers has been working on cash flow analysis. She has met with Mr. Thayer and with BPMC Counsel. Additional details of her efforts and a report is expected to be presented at the January meeting. Vice-Chair Janorschke requested that BPMC Counsel provide an update on their activities with the Special Committee. Mr. Gibson advised that Resolution 21-02 was created to set forth the intent of the BPMC to improve the transmission grid from Homer to Fairbanks, which will foster the deliverability of the sustainable low-cost clean energy produced by the Project. Mr. Gibson reiterated that the Special Committee was created at the previous BPMC meeting and has completed a tremendous amount of work in the short time since to move forward, to respond to some of the inquiries of DOL, and to provide additional information with respect to the oscillations and support for the battery. Much progress has been made. Mr. Gibson explained that Resolution No. 21-02 is to publicly set forth the intent of the BPMC. It is well known that the BPMC is responsible for the management, operation, maintenance, and improvement of the Bradley Lake Project, subject to the nondelegable duties of AEA. The BPMC wants to maximize the efficiency of the Project and the deliverability of the energy that is produced by the Project to the benefit of all the consumers who are relying on the system. Mr. Gibson discussed that the BPMC and AEA have identified shovel-ready opportunities over the last year to increase the productivity of the Project. Mr. Gibson reviewed Resolution No. 21-02. He highlighted the value-added language noting that the energy from the Project has very low associated carbon dioxide emissions. Mr. Gibson advised that the BPMC believes that a series of essential improvements and upgrades to the system can be financed using funds for essential and agreed-upon required project work. To maximize these improvements in an expedited manner, the BPMC identified that it might be necessary and that there might be times where one of the purchasers can be used for procurement and design services. The selection would occur within the State required competitive bid process. Mr. Gibson discussed that the two memorandums issued by DOL have provided guidance to the BPMC and will be utilized as required project work is undertaken. Mr. Gibson reiterated the good working relationship with DOL and highlighted the critical meeting scheduled for next week. Mr. Gibson advised that the BPMC is interested in moving forward with dispatch because of the benefits that increased efficiency and deliverability would provide to one of the lowest cost energy generation in the Railbelt. He gave the example that upgrading the SSQ Lines saves enormous amounts of losses at the current project level. Vice-Chair Janorschke expressed appreciation to Mr. Bishop, Ms. Highers, the Subcommittees, BPMC Counsel, AEA, and DOL for their substantial efforts in an expeditious manner. ___________________________________________________________________________ BPMC Minutes 12/10/21 Page 9 of 10 MOTION: A motion was made by Vice-Chair Janorschke to approve Resolution 21-02 – Upgrading and Improving the Deliverability of Project Power as presented. Motion seconded by Mr. Thayer. Mr. Thibert expressed his support for Resolution 21-02. He believes this has been a fantastic effort and the Bradley Project has been one of the most valuable resources in the Railbelt. Mr. Thibert commented that this decision provides the opportunity to make improvements to the Project that are necessary to increase the limited capacity and to maximize the value of the Project. He thanked the individuals for their work and time on this collective effort. Mr. Montgomery indicated that he is new to some of these happenings and that he has read through and studied the resolution. Mr. Montgomery believes that the resolution clearly lays out a plan for moving forward. He expressed support for the resolution. Mr. Burns commented on how proud he is of the resolution. He believes it reflects the comprehensive future vision of the State-owned asset, which will provide tremendous benefits over the years to the Railbelt corridor. Mr. Burns reiterated that this plan maximizes the intent of the asset by adding efficiencies, unconstraining, and lowering the cost of deliverables. He echoed members’ support for the resolution and expressed appreciation for individual efforts. Vice-Chair Janorschke echoed the previous members’ sentiment. He noted that the BPMC is a unique group. In the last 18 years on the BPMC, he does not believe an issue of this magnitude has resulted in the unanimous support that this plan has received. Vice-Chair Janorschke discussed that he is fortunate to work with the highest quality people to move the plan forward. Chair Izzo echoed previous member comments. He is proud to support the resolution on behalf of MEA. He noted that this plan of upgrading and improving the deliverability of Project power is consistent with BPMC’s mission and with AEA’s mission. The projects are designed to optimize the use of the Project with the goal to minimize costs, stabilize rates for consumers, and provide positive impact for approximately 75% of the state population. Additional benefits include the creation of jobs and other economic development opportunities from Kenai to Fairbanks without any burden on the State’s budget. A roll call vote was taken, and the motion to approve Resolution 21-02 – Upgrading and Improving the Deliverability of Project Power as presented passed unanimously. Mr. Gibson requested indulgence of the Committee to comment on the impending retirements of Mr. Thibert and Mr. Day. He welcomed their “applications into the society where every day is a Saturday.” 12. COMMITTEE ASSIGNMENTS Chair Izzo assigned Ms. Highers and the Budget Subcommittee to work with AEA to put forward a budget revision at a meeting that will be scheduled as early as possible in January 2022. Chair Izzo assigned BPMC Counsel to collaborate with DOL to streamline the documentation and the process to determine required project work. 13. MEMBERS COMMENTS Mr. Thibert noted that he will make his comment after he provides an email report from Ms. Highers that she was attempting to connect earlier and that the phone system would not allow the ___________________________________________________________________________ BPMC Minutes 12/10/21 Page 10 of 10 connection. Mr. Thibert reviewed that Ms. Highers’ report indicates that given the timing of project planning and the required process, the Committee believes that the best course of action is to consider making a prepayment on the SQ Line loan to free up capacity for potential future projects that are currently being considered. To facilitate the prepayment, a revision to the FY22 Budget would need to occur. That concluded Ms. Highers’ report. Mr. Thibert believes this was a great meeting and he looks forward to attending his remaining meetings. Mr. Thayer expressed appreciation for today’s meeting and especially for the diligent efforts to move forward with required project work. He believes it is good timing that the bonds are paid off. He feels that this is a good plan and that it will be beneficial for the public to understand the strategy. Mr. Montgomery stated that it is nice to attend in-person and to interact in the dialog at the table. He expressed appreciation to the Committee for their patience during his transition and looks forward to working with the Committee. Chair Izzo commented that Mr. Montgomery has been in the utility business for quite a while and is not new to the utility sector. Mr. Burns expressed excitement about the direction of the BPMC, specifically relating to the Dixon Diversion resolution and the upgrading and improving the deliverability resolution. He believes these speak to the vision for the future of the Railbelt, and is proud and excited for that future. Vice-Chair Janorschke expressed congratulations to Mr. Gibson and Mr. Day on their retirements. He thanked them for their contributions over the years. Vice-Chair Janorschke reiterated appreciation for the AEA staff and for the auditing team for their efforts and results of the clean audit. He wished all a Merry Christmas. Chair Izzo expressed sincere gratitude to Mr. Gibson for providing continuity throughout the years. He thanked Mr. Day and shared an anecdotal memory. Chair Izzo expressed appreciation to staff and to Stefan Saldahna, DOL, for the continued alignment and partnership. He wished all a Merry Christmas and Happy New Year. 14.NEXT MEETING DATE - January 28, 2022 Chair Izzo advised that the next regularly scheduled meeting date is January 28, 2022. He noted the possibility of calling a meeting earlier in January to address a budget amendment. 15.ADJOURNMENT There being no further business for the committee, the meeting adjourned at 11:45 a.m. ____________________________ Tony Izzo, Chair ______________________________ Curtis Thayer, Secretary