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IOC Committee Meeting Agendas and Notes 2002-2004
ALASKA INTERTIE OPERATING COMMITTEE MEETING AGENDA THURSDAY,OCTOBER 14,2004 BEGIN AT 10:00 A.M.\7\I.Adoption of prior meeting minutes A.July 15,2004 Meeting Minutes (MEA) II.Approval/Modification of agenda III.Committee reports and correspondence Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee Budget Subcommittee Intertie Status Report Communications ReceivedOmMmMOOw>IV.Visitor's Comments Related to Items on Agenda V.Recess,if needed VI.Work Session Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee Budget Subcommittee (FY05 Budget) Upgrade/Extension of Intertie to Teeland Southern Maintenance Contractor/Tree Clearing Interconnect Agreements (Non-Participants on the Grid)3 General DisevssitonVII.Formal Operating Committee Actions/Recommendations TOMMOAWSVUI.Subcommittee Assignments A.Dispatch Subcommittee B.Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee Budget SubcommitteemoO IX.Determine Agenda for Next Meeting to be hosted by AMLP on January 20,2005. X.Adjournment Meeting Location:CEA Training Room 5601 Minnesota Dr. Anchorage,Alaska 99519 DRAFT ALASKA INTERTIE OPERATING COMMITTEE »MEETING MINUTES \4THURSDAY,JULY 15,2004 (MATANUSKA ELECTRIC ASSOCIATION -BOARD ROOM) Present: Art Copoulos Alaska Industrial Development and Export Authority (AIDEA) Henri Dale Golden Valley Electric Association (GVEA)-1OC Chairman Bob Day Anchorage Municipal Light &Power (AMLP) Bob Drake Matanuska Electric Association,(MEA) Paul Williams Dryden &LaRue John Cooley Chugach Electric Association (CEA) Doug Hall Anchorage Municipal Light &Power (AMLP) The meeting was called to order at 11:11 A.M. Does not include changes discussed prior to voting on approval. Minutes not approved. I ADOPTION OF PRIOR MEETING MINUTES The April 15,2004 minutes were approved with changes. The May 18,2004 minutes were approved. ll APPROVAL/MODIFICATION OF AGENDA Agenda was approved.Doug Hall asked to be included in future mail outs. HT COMMITTEE CORRESPONDENCE AND REPORTS A.Dispatch Subcommittee -The Dispatch Subcommittee met on July 12,2004.They discussed recent large outages,improving communications between the Control Centers along with other topics. B.Reliability/Protection Subcommittee -The Reliability Subcommittee met on May 6,2004 to elect a new chairman,discuss 1 shot L-G reclosing between Teeland and Douglas,Shedding at Healy and other topics. -They did not elect a chairman,but Luke Sliman will act in an interim capacity. -They felt that 1 shot reclosing for L-G faults at Teeland toward Douglas should be implemented. -The Healy shedding will be discussed in more detail at the next meeting.There areconcernsitshouldbeimplementedatTeelandsothatitwouldhaveaccesstothe Teeland 230 kV status. Cc.Machine/Rating Subcommittee -The Machines Ratings people met on May 6,2004 to discuss committee work and to , Alaska Intertie Operating Ct...\ittee Meeting V ...2s-Thursday,July 15,2004 Page 2 of 2 at Matanuska Electric Association receive a presentation on Cook Inlet natural gas. --Updates of the various utilities maintenance projects were discussed. -CEAIRP was discussed. Alaska Intertie Operating Ct.....,ittee Page 3 of 3 Vi D. Meeting N......2s -Thursday,July 15,2004 at Matanuska Electric Association SCADA/Metering/Communication Subcommittee -Committee has met on May 19,2004 to discuss alternative arrangements for communications circuits. -They recommend to the IOC that it pursue moving its existing lines to a leased T-1 circuit and recommend AlasConnect as the least cost option. Maintenance Subcommittee -The Maintenance Subcommittee met Tuesday,March 13,2004.They discussed upcoming maintenance,Lindsey Towers and the emergency repairs to the TLS SVC. -They discussed using EPS to create a specifications and Scope of Work for the SVC upgrades. Budget Subcommittee -The Budget subcommittee met on July 12,2004 and has a budget submitted for approval this meeting. Intertie Status Report -Noreport submitted at this meeting. Communications Received -D&L submitted a SOW for Alaska Intertie Upgrade Alignment Refinement. -D&L submitted a SOW for Alaska Intertie Inset Structure Preliminary Layout. VISITOR'S COMMENTS RELATED TO ITEMS ON AGENDA No comments. RECESS Lunch was convened at 12:00 WORK SESSION The work session began;discussions followed the agenda below. Alaska Intertie Operating Cc......ittee Meeting M.....2s -Thursday,July 15,2004 Page 4 of 4 at Matanuska Electric Association Dispatch Subcommittee -No discussion. Reliability Subcommittee -[OC is ok with Subcommittee's proposal for Teeland Douglas 1-shot. Machine Ratings Subcommittee -Nodiscussion. SCADA/Metering/Communications Subcommittee -Generally ok with the idea.Art would like the committee to talk to Chris Rutz at AIDEA who is involved with their purchasing/procurement to make sure there are no other problems of a commercial/State procurement nature. Maintenance Subcommittee -Discussed having the southern portion of the intertie re-cleared.Also of the costs and benefits of Lindsey Towers. -The !OC doesn't believe the cost benefit is there. -The IOC would like MEA to proceed with having the southern section cleared. Budget Subcommittee -The budget was discussed including using the SVC monies that have been in an account for several years. Upgrade/Extension of Intertie to Teeland -Discussed the upgrade project.The State needs to talk to DOT to remind them why they were chosen and AMLP and the State need to get moving on a project management agreement. Southern Maintenance Contractor -Bob Drake will get back to us in a few weeks to confirm whether or not they intend to rescind their letter notifying the State that they did not intend to renew their duties as the Southern Maintainer. Interconnect Aqreements (Non-Participants on the Grid) -Discussed many of the new possibilities that could occur in this arena.Participants are to be prepared to discuss this further next time. Cy Pd Alaska Intertie Operating Cv....1ittee Meeting N....-.es -Thursday,July 15,2004 Page 5 of 5 at Matanuska Electric Association Vil FORMAL OPERATING COMMITTEE ACTIONS/RECOMMENDATIONS -The FY05 Intertie budget was presented and a vote to accept it was presented. -Vote taken and passed to accept the budget. AEGT -abstain CEA -yes AEA -yes AMLP -yes GVEA -yes Vill SUBCOMMITTEE ASSIGNMENTS A.Dispatch Subcommittee -Review SLM procedures and respond prior to next winter. B.Reliability/Protection Subcommittee -Elect Chairman.Review Healy SVC operating requirements and use of OV relay. Cc.Machine/Rating Subcommittee -On-going D.SCADA/Metering/Communication Subcommittee -Contact Chris Rutz re.changing communications vendors. E.Maintenance Subcommittee -Make arrangements for new Southern Maintainer. IX DETERMINE AGENDA FOR NEXT MEETING Next meeting to be held at 10:00 AM on Thursday,October 21,2004,hosted by CEA. Xx ADJOURNMENT Meeting adjourned at 2:10 PM. ALASKA INTERTIE OPERATING COMMITTEE MEETING AGENDA THURSDAY,JULY 15,2004 BEGIN AT 11:00 A.M.| I.Adoption of prior meeting minutes 9 A.April 15,2004 Meeting Minutes (GVEA) B.May 18,2004 Interim Meeting Minutes (AIDEA) II.Approval/Modification of agenda III.Committee reports and correspondence A.Dispatch Subcommittee .Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee-. Budget Subcommittee__G-Upprade/Extension-Subcommities. H.Intertie Status Report I.Communications ReceivedAmoOD IV.Visitor's Comments Related to Items on Agenda V.Recess,if needed VI.Work Session .Dispatch Subcommittee 54M Procedures /Cerimardhkigo- Reliability/Protection Subcommittee Machine Ratings Subcommittee CgwwernitadonesSCADA/Metering/Communications Subcommittee”ctMaintenanceSubcommitteewhae.ak om B "SG ° Budget Subcommittee (FY05 Budget)-Reema & Upgrade/Extension of Intertie to Teeland Southern Maintenance Contractor Interconnect Agreements (Non-Participants on the Grid)MHmO™MMOOWD>VII.Formal Operating Committee Actions/Recommendations A.Adopt FY05 Budget VIII.Subcommittee Assignments Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance SubcommitteemoOD F.Budget Subcommittee IX.Determine Agenda for Next Meeting to be hosted by CEA on October 21,2004. 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N DRAFT ALASKA INTERTIE OPERATING COMMITTEE Interim MEETING MINUTES TUESDAY,MAY 18,2004 (AIDEA -BOARD ROOM) Present: John Cooley Chugach Electric Association (CEA) Art Copoulos Alaska Industrial Development and Export Authority (AIDEA) Henri Dale Golden Valley Electric Association (GVEA) Doug Hall Anchorage Municipal Light &Power (AMLP) Bob Drake Matanuska Electric Association,(MEA) Jim Posey Anchorage Municipal Light &Power (AMLP) Joe Griffith Chugach Electric Association (CEA) Steve Haagenson Golden Valley Electric Association (GVEA) Ron Miller Alaska Industrial Development and Export Authority (AIDEA) Brian Hickey Chugach Electric Association (CEA) Lee Thiebert Chugach Electric Association (CEA) Dora Gropp Chugach Electric Association (CEA). Del LaRue Dryden &LaRue Brian Bjorkquist Alaska Industrial Development and Export Authority (AIDEA) Ed Reubling Anchorage Municipal Light &Power (AMLP) Absent: Don Stead Homer Electric Association (HEA) Bob Day Anchorage Municipal Light &Power (AMLP) The meeting was called to order at 10:30 A.M. |ADOPTION OF PRIOR MEETING MINUTES Minutes of prior meeting to be adopted at next scheduled meeting. MW APPROVAL/MODIFICATION OF AGENDA Art added VI-C Teeland SVC Aux transformer. tl COMMITTEE CORRESPONDENCE AND REPORTS A.Karl Reiche e-mail of 4/16/04 -There were no comments on the e-mail B.Copoulos/Kimmel e-mail of 5/17/04 -To be discussed in work session. IV VISITOR'S COMMENTS RELATED TO ITEMS ON AGENDA No comments. Page 1 of 3 Vv RECESS Recess deferred -went into Work Session. Vi WORK SESSION The work session began;discussions followed the agenda below. A.Teeland-Douglas Bypass -Del LaRue gave a brief presentation on the different routes and discussed the pros and cons of these routes. -Discussed possibility of condemnation,EIS,and potential tower conflict of sharing ROW's. -As all the routes were feasible,and would accomplish the needed - infrastructure upgrade,it was discussed that the selection of a particular route,does not exclude the others from being pursued if unexpected obstacles were to present themselves. B.AMLP as Project Manager -Discussed using AMLP as the project manager.Jim Posey says they are up to the challenge.AMLP and the State need to finish working out the details. Cc.Teeland SVC auxiliary transformer -One of the dry pack transformers has failed.This is the second failure (although different modes of failure).CEA would like to replace the dry pack transformer with an oil transformer. -10C recommendation is to have an engineering firm spec out the proper oil transformer and have it replaced. Vil FORMAL OPERATING COMMITTEE ACTIONS/RECOMMENDATIONS -Resolution 1: The !OC accepts and concurs with the Dryden &LaRue study "Alaska Intertie Upgrade Study 230 kV Transmission Line Teeland Substation to Douglas Substation” Vote taken and passed in favor. AEGT -abstain CEA -yes AMLP -yes GVEA -yes AEA -AEA concurs to support the !OC Utilities Recommendation. -Resolution 2: The IOC recommends pursuing the MEA Parallel Route (Route M) Page 2 of 3 Vote taken and passed in favor. AEGT -abstain CEA -yes AMLP -yes GVEA -yes AEA -AEA concurs to support the IOC Utilities Recommendation. -Resolution 3: The IOC recommends AMLP to perform the duties of "Project Manager” for the Alaska Intertie Upgrade Project Vote taken and passed in favor. AEGT -abstain CEA -yes AMLP_-yes GVEA -yes AEA -AEA concurs to support the 1OC Utilities Recommendation. Vill SUBCOMMITTEE ASSIGNMENTS No assignments were made. IX DETERMINE AGENDA FOR NEXT MEETING Next meeting to be held at 11:00 AM on Thursday,July 15,2004,hosted by MEA. xX ADJOURNMENT Meeting adjourned at 11:47 AM. Page 3 of 3 ALASKA INTERTIE OPERATING COMMITTEE MEETING MINUTES THURSDAY,APRIL 15,2004(GOLDEN VALLEY ELECTRIC ASSOCIATION,INC -BOARD ROOM)aieCPresent:4 0 /\Dave Burlingame Electric Power Systems (EPS)#\5BillBernierChugachElectricAssociation(CEA) Art Copoulos Alaska Industrial Development and Export Authority (AIDEA) Henri Dale Golden Valley Electric Association (GVEA) Bob Day (via phone)=Anchorage Municipal Light &Power (AMLP)Bob Drake (via phone)Matanuska Electric Association,(MEA) Brian Hickey Chugach Electric Association (CEA) Kate Lamal Golden Valley Electric Association (GVEA) Del LaRue Dryden &LaRue Don Stead Homer Electric Association (HEA) Absent: John Cooley Chugach Electric Association (CEA) Doug Hall Anchorage Municipal Light &Power (AMLP) The meeting was called to order at 8:55 A.M. I ADOPTION OF PRIOR MEETING MINUTES Minutes were approved as written. iH APPROVAL/MODIFICATION OF AGENDA No agenda distributed. ll COMMITTEE CORRESPONDENCE AND REPORTS A.Dispatch Subcommittee -The Dispatch Subcommittee met week of April 6,2004. -Snow load monitoring discussed.Will discuss further at next meeting set for July 2004. Framework for documentation is completed.Would like to have reference to "Cruz” removed,replace with "contractors”.Will discuss details of documentation in coming months. -Henri briefly discussed GVEA's blackout/breaker failure that occurred in February 2004. B.Reliability/Protection Subcommittee -Brian Hickey reported he believes the committee needs to elect a new chairman. -Topic of discussion AMLP,CEA and MEA to decide what functionality they want for relay operations for the Teeland/MEA lines. C.Machine/Rating Subcommittee -Meeting scheduled for May 2004. Alaska Intertie Operating Co ttee Meeting Mi s -Thursday,April 15,2004 Page 2 of 5 Golden valley Electric Association,Inc. Vi D.SCADA/Metering/Communication Subcommittee -Committee has recently met. -Discussion on using different vendor rather than DIVCOM for communications between Anchorage and Fairbanks.Possibility of having quotes from 2 -3 other vendors. - Artsent John Cooley letter requesting budget number ASAP for communication services. ACTION ITEM:SCADA/Metering/Communications Committee needs to resolve communications issues now or we will have to wait for another year. E.Maintenance Subcommittee -The Maintenance Subcommittee met Tuesday,March 13,2004. -Topic of discussion;Snow Load Monitoring. -Further discussion tabled until Work Session. F.Budget Subcommittee --Committee has not met as of this date. -Question if CEA or MEA will be southern maintainer and be responsible for FYO5 budget. All budgetary information needs to be submitted to Art by June 1,2004 G.Intertie Status Report -Henri discussed the opening on B17.Believed to be bad cable between B17 relays and PT's.GVEA will be rewiring during 2005 summer season. H.Communications Received -Henri stated GVEA has put in a frequency rate of change relay on Healy B17.Everyone should have received a description of this.Deferred to Work Session. VISITOR'S COMMENTS RELATED TO ITEMS ON AGENDA No comments. RECESS Recess deferred -went into Work Session. WORK SESSION The work session began;discussions followed the agenda below. Lhe Alaska Intertie Operating Co _ttee Meeting M »s -Thursday,April 15,2004 Page 3 of 5 Golden valley Electric Association,Inc. A.Dispatch Subcommittee -Committee is to review the documentation Brian Hickey has completed on Snow Load Monitoring Response. -Henri discussed the Healy B16 failure,stating the cause seems to be liquification of SF,during -40°F,addition of SFs and then temperature rising to +40°F and the resultant over pressurization. B.Reliability Subcommittee ACTION ITEM -Need to have this group meet. Cc.Machine Ratings Subcommittee -Have not met as of this date. D.SCADA/Metering/Communications Subcommittee -Henri discussed Douglas metering.Meters seem to need calibration,reads are drifting. ACTION ITEM -Henri to notify group they need to meet and resolve issue(s)with DIVCOM vendor. E.Maintenance Subcommittee -Route is still being reviewed for Teeland/Douglas bypass.GVEA has given input.E-mail from Karl Reiche should be forthcoming.Still not decided if CEA or MEA will be maintaining.Discussions on-going. ACTION ITEM -Continue moving forward with discussions. -Rate of change/underfrequency relay is turned on and in-service.When GVEA is islanded and frequency drops at high rate,it drops fast.GVEA will shed their customers at same time the tie drops off.Brian Hickey noted the procedural operations should go through subcommittee. F.Budget Subcommittee ACTION ITEM -Get budget numbers to Art by June 1,2004 for FY05 budget. G.Snow Load Monitoring System/Draft Report - Deldistributed draft Snow Load Mitigation Report.Is soliciting comments from everyone. Committee reviewed report and each option. e Option 1 a.Remove yokes,conductors.Removes some flexibility to towers. e Option 2 a.Inset towers mid-span throughout area of system in question. b.Inset towers as necessary such as long spans,creek/road crossings and previously known problem spots. Alaska Intertie Operating Co ttee Meeting M *S -Thursday,April 15,2004 Page 4 of 5 G. Golden valley Electric Association,Inc. Snow Load Monitoring System/Draft Report (cont.) Questions and discussion regarding the existing SLMS.Del reported that there are new monitoring techniques and better communications.We are probably monitoring enough locations,but we need to improve the reliability of receiving the information that we are measuring.With partnership of existing SLMS and ground/air patrols it seems there is sufficient monitoring already available. Also,discussed how this problem could grow and impact utilities over time with more people using the ROW''s for pleasure.Discussion on how we could try to deter people from using the ROW's. ACTION ITEM --Bill to add to his assessment when he monitors ROW,who is grooming trail,can we try to let tree growth go and influence where people are driving along ROW. Committee discussed not pursuing upgrading SLMS as permanent solution,although an upgrade along with another option could still be viable.Vote taken to have SLMS off the table as a viable solution.Vote passed to have this option removed. AEGT -yes CEA -yes AMLP -yes GVEA -no Discussed Option 2-b.Committee recommended to pursue this option,price ranging from $13.8 -$16.9 million.Committee recommends the definition of long span change from 1200'to 1300'.Del can take another look at this option with the new ruling span and come up with new price range although,it will not be exact.Art stated as long as he has a dollar range he can begin work on the bonding process.Art suggested the Committee provide recommendation to the GM's. Discussed having SVC Upgrade Project and two tower repairs worked at same time. This could help alleviate outages and reduce cost if work completed at same time. SVC Systems Discussion on historical failures.There are no records of any failures and if there would be a failure now there are neither spare parts nor anywhere to purchase spare parts for the system we currently have.Dave asked about operational aspects and what needs to be changed.No one has identified any control changes to this date.Dave stated there are control differences between southern and northern controllers.Dave also stated CANA might put in a competing offer to ABB's offer for SVC controls.As of now this is not a bidding process.If we are going to take competing offers we will need to put out as bid and get a bidding qualification spec formulated and develop a scope of work.At this time it seems there might be at least two bidders maybe three. Discussed issue of where labor boundaries are within utility's facilities.Southern and northern facilities need to be consistent and should take proactive stance.Be sure to layout and define boundaries in contract. ACTION ITEM -Work with utilities to define labor boundaries,define scope of work anticipating there will be more than one vendor and will have a competitive bid. ere Vil Vill Alaska Intertie Operating Cc ittee Meeting M 2s -Thursday,April 15,2004 Page 5 of 5 Golden Valley Electric Association,Inc. FORMAL OPERATING COMMITTEE ACTIONS/RECOMMENDATIONS -Henrimoved to have Committee pursue Option 2-b for Snow Mitigation and have Dryden &LaRue change definition of long span from 1200'to 1300'and refine their numbers. Aliso,Art to include tower repair and SVC controls in budget estimate. -Vote taken and passed in favor of Option 2-b. AEGT -yes CEA -yes AMLP_-yes GVEA -yes -Bob Drake nominated Henri Dale for Chairman.There were no other nominations.The nomination was accepted,and ail members present voted to have Henri Dale as Chairman of the IOC. -Bob Day nominated Bob Drake for Vice Chairman.The nomination was accepted,all members present voted to have Bob Drake as Vice Chairman of the IOC. SUBCOMMITTEE ASSIGNMENTS A.Dispatch Subcommittee -Carry on with current assignments. Reliability/Protection Subcommittee -Recommend if study is needed to determine if HLS SVC is critical for tie line operation since BESS and Northern Intertie has been in-service. Machine/Rating Subcommittee -On-going SCADA/Metering/Communication Subcommittee Continue to make recommendations. Maintenance Subcommittee --On-going Budget Subcommittee -Meet to discuss and develop FY05 budget. DETERMINE AGENDA FOR NEXT MEETING Next meeting to be held at 11:00 AM on Thursday,July 15,2004,hosted by MEA. ADJOURNMENT Meeting adjourned at 12:06 PM. Intertie Maintenance Subcommittee Meeting Minutes The IOC Maintenance Subcommittee met on April 13,2004 at 10:00 at the AIDEA headquarters in Anchorage. Attendees: Art Copoulos -AIDEA Tom Kelly -MEA Charlie Kimmel -CEA Bill Bernier -CEA Rich Piech -GVEA Steve Willis MEA AMLP-AbsentAlsoinattendancewere Del Larue and Paul Williams of Dryden &Larue Inc.and Dave Burlingame from EPS. 1)Follow up on capital funding for SVC upgrade. .Per Art€opotitos,the IOC Maintenance Committee decided to keep as a ''combined package the SVC upgrade,the SLMS remediation,and towers 274 and 297 |together as one total project cost that can be used for budgetary purposes.The IOC did not want to vote on each project separately,but to get a "total”cost for allProjects Joly chev LJcombined.>ofag ean v any ef these propeets seperalenyNo+ove 4 WeDaveDativameccquested that we consider asking the IOC maintenance committee to do a "qualifying”for the SVC upgrade because there were other interested companies in doing the SVC upgrade work.We agreed to ask this of the IOC . 2)Follow-up on SAC's reviewing SVC Operating restrictions. We have not received an answer to the supposed restrictions,and asked Art Copuoulos to bring this up again to the IOC maintenance committee or nityNeckCoeWeulsNewcutthweuly $VF ©information,ee c }Senuicy =(heety)Un ed 3)Discussion on Maintenance Plans and Updates. Rich Piech stated that GVEA had donea flying patrol of the Southern Intertie from Healy to Indian River on 17 Mar 2004,and had found the transmission line in good condition with no changes. Rich Piech gave Tom Kelly a copy of a tower maintenance/inspection checklist for MEA's use. Cin,Fly Mod 20SSetomobvertall Cheppr Fn ehCineonofServicecost SSS |DOV -can yo beck m "femelle rhe foCanELYin,rot sertah&gn SKEantgxmntempyokpeeSVE10>Cpe aay ocd ghLigierLgaoked) Rec _eveluate Ay of purchodinyLatetrwty S Tnd wey = _ bak Ean Goorts 15+on Commm Dob per Substaly™| let or &,Ind, WAY STease[00-200K ney ALASKA INTERTIE OPERATING COMMITTEE INTERIM MEETING AGENDA y }TUESDAY,MAY 18,2004 \GbBEGINAT10:30 A.M. I.Adoption of prior meeting minutes To be adopted at next regularly scheduled meeting. II.Approval/Modification of agenda III.Committee reports and correspondence A.Karl Reiche e-mail 4/16/04 IV.Visitor's Comments Related to Items on Agenda V.Recess,if needed Limited topic meeting,should not be necessary. VI.Work Session A.Recommendation for TLS-DGS bypass route..B.Recommendation for AMLP to manage the project.c Teelome SG LrolynaVII.Formal Operating Committee Actions/Recommendations , VIII.Subcommittee Assignments Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee F.Budget Subcommittee IX.Determine Agenda for Next Meeting X.AdjournmentMOO>Meeting Location:AIDEA/AEA Conference Room 813 W Northern Lights. Anchorage,Alaska 99501 Z syc tale Ad Intertie,$20.3 million gra *"or upgrade/extension,refinement of revte study Page 1 of 2 . Art Copoulos From:Karl Reiche Sent:-Friday,April 16,2004 9:42 AM To:john_cooley@chugachelectric.com;redrake@matanuska.com;Dayrh@ci.anchorage.ak.us; hfdale@gvea.com;jsusky@homerelectric.com;Art Copoulos Subject:AK Intertie,$20.3 million grant for upgrade/extension,refinement of route study AEA was requested by GM's from GVEA,CEA,&ML&P 4-6-04 to refine the Alaska Intertie Upgrade Study (prepared by Dryden &LaRue,dated 1-30-04).AEA prepared a scope of work and e-mailed it to GVEA's GM 4-7- 04 for review &comment (see attached word file).GVEA's GM then e-mailed Dryden &LaRue 4-9-04 with additional suggestions for refining the study (see e-mail below and attached excel file).AEA requests that the IOC review both AEA's proposed scope and GVEA's proposed approach,and provide feedback to AEA. <<HF-Envirographic.xls>><<Alaska Intertie Upgrade Study refinement (2).doc>> GVEA e-mail 4-9-04 to Dryden &LaRue: From:Steve Haagenson [mailto:shh@gvea.COM] Sent:Friday,April 09,2004 1:47 PM To:dlarue@drydenlarue.com Cc:Mike J.Wright;Ron Saxton;Art Copoulos;Joe Griffith; PoseyJM@ci.anchorage.ak.us;Brian Bjorkquist Subject:Route Selection for the Teeland to Douglas transmission line. I was at a meeting earlier this week with AIDEA and the utilities to discuss the construction of the Teeland to Douglas transmission line.I was asked if I would talk to you about the route selection for this project. There needs to be a decisional document that evaluates all the issues and selects a route that takes all the issues into consideration.Once a route has been selected with all issues being considered,the AIDEA Board should accept the route and then empower a construction manager to move forward with ROW acquisition and construction. Attached is a drawing of a concept which was used on the Northern Intertie. The idea is to make a topographical map based on the differing levels of environmental concern,which we call an enviro-graphic map.Once all the issues have been added to the map,the map is flooded to connect the beginning and ending points and thus identifying the route with the least overall effects.I was told this is similar to the method described in a book called,"Designing with Nature” by Ian McHarg in which he identifies issue areas with shaded acetate.The least shaded route would be the preferred.I like the enviro-graphic map as it allows you to feather the effects as they would be in reality rather than going from no effect to high effects in one step at a specific point.If acetate methods were used in the attached enviro-graphic profile,it may not have captured the lowest impact route location. I would recommend a weighted land ownership as follows: Federal land =high effects due to the triggering of NEPA environmental. Private land =medium effects State land =low effects 5/12/2004 AK Intertie,$20.3 million grant for upgrade/extension,refinement of rante study Page 2 of 2 From our meeting,I think that AIDEA will be contacting you to conduct an enviro- graphic map to aid in the final route selection.I will help in any way I can to get this project moving toward completion.Golden Valley is very busy,but we will make time to help make this project a success. Steven Haagenson President &CEO Golden Valley Electric Association,Inc. (907)458-5866 shh@gvea.com 5/12/2004 Conceptual Side View of an Enviro-graphic Map Parks Highway Tourism Visual Alaska Railroad Private land interest Visual /Tourism Tanana Flats Habitat Fire Management Calving areas Trumpeter Swans ARR Parks Point of Lowest environmental effects when considering all issues. 1)The final report recommended either MEA Upgrade Option U1 (retire the existing MEA line and build a new 230 kV line in the existing ROW)or MEA Parallel Route (parallels the existing MEA ROW).Refine the parallel route as follows: "*Determine how much of MEA's ROW would be overlapped for the parallel route.Qualitatively and quantitatively assess the cost and impacts associated with the overlap. "*Identify any federal government,state forest,educational trust,or mental health trust lands along the route.Determine what if any a new routing would be needed along the parallel route to avoid federal government, state forest,educational trust,or mental health trust lands. "*Identify any environmentally sensitive habitat along the route.Determine what if any a new routing would be needed along the parallel route to avoid environmentally sensitive habitat. *¢Identify any unique lands that may be used for recreation or other purposes along the route.Determine what if any a new routing would be needed along the parallel route to avoid these unique lands. "*Determine what,if any,individual parcels and/or ROW along the parallel route will require condemnation.If condemnation is required,qualitatively and quantitatively assess the cost and impacts associated with the condemnations.Determine what,if any,a new routing would be needed along the parallel route to avoid multiple or large parcel condemnations. "+Asses and identify any other issues along the route that might lead to controversy or impacts.Consider issues related to land acquisition as well as construction and operation.Determine what,if any,a new routing would be needed along the parallel route to avoid controversy or impacts so that the line can be built cost effectively and as quickly as possible with minimal impacts to the local population and environment and so that it can be successfully maintained and operated in the future. "+Identify improved parallel route using above results and revise the cost estimate associated with the "improved”parallel route.Comment on whether the parallel route would still be the preferred alternative based on new information obtained in step #1.. 2)Complete step 1 for all other route alternatives if the parallel route is no longer the preferred route. 3)Identify a preferred route. 4)Determine the duration that power transfer along the Alaska Intertie will be disrupted during construction of the bypass section for all routes. 5es Message ./||_ce -..Page1of 1 RobertC Drake | DC ,. -From:,John Cooley [John_Cooley@chugachelectric.com)Sent:Wednesday,March 24,2004 2:53 PM,To:..Steve Gilbert;acopoulos@aidea.org;Brian Hickey;DayRH@dl anchorage.ak.us;Ed Jenkin: _-.HallDW@ci.anchorage.ak.us;hfdale@gvea.COM;John Cooley;JSchroeder@HomerElectric.com;JSusky@HomerElectric.com;kevin dunham;Luke Sliman;redrake@matanuska.cecom -"Ce:=Lynda Punis.Subject:GVEA new rate ofdecay ray at HealyAttachediisadescriptionofthenewrelayGVEAactivated at Healy.Please bring any'questions tto the lOc -meeting on April 15 in Fairbanks.; John S.Cooley,PE.Manager,Power Control &Fuel Mgmt. 3/29/2004 -HLSIB17 Power Supervised Under-F;requency ROC Relay Operation Introduction - In September of 2002,Matanuska Electric,Association (MEA)opened Shaw 115 kVswitch101,between their Shaw and Lazelle substations.This action opened the 115.kV-line between the Plant 2 and Teeland substations.:The effect this action has on GoldenValleyElectricAssociation's (GVEA)system is the sourcing of MEA load when the Pt.MacKenzie to Teeland 230 kV line opens.On November 11",2002 the Pt.MacKenzie,to Teeland 230 kV line was tripped.During this disturbance GVEA supplied..©-approximately 30 MW of energy via the Intertie to MEA customers after the Pt.MacKenzie to Teeland 230 kV line tripped.GVEA shed additional customers (loadto.maintain MEA customers.In an effort to avoid this situation GVEA has installed aprotective clay the Healy . substation which will trip the Intertie south of Healy.The protective relay is installed at - Healy substation breaker HLS1B17 and will operate for an excessive frequency rate of -.- decay (ie:loss of the Pt.MacKenzie to Teeland 230 kV line)and a simultaneous realpowerflowthroughHLS1B17greaterthanasetamountinthedirectiontowardtheMEA -system.The protective function of this relay can be enabled and disabled remotely by ©GVEA dispatchers.Indication of protective function enable/disable iis Provided to GVEAdispatch.,ees -Protective F unction Operation/Implementation - -A Schweitzer Engineering Laboratories,Inc.SEL-351-7 protective relay was selected for_this project.The SEL-351-7 provides the necessary directional power and under-.”frequency elements.The SEL-351-7 does notot directly provide a frequency rate of change element.'In this 'application a frequency rate of change is observed by providing a fixed window in timeforthefrequencytotransitionfromthefirstfrequencyset-point to the second frequency.-set-point.Two under-frequency elements (81D1P,81D2P)and their associated timers - were used.The set-point of 81D1Pis always greater than the set-point of 81D2P.°81D1P is currently set for 59.80 Hz and 81D2Pis set for 59.60 Hz.The frequency rate ofchangefunctionistriggeredifthe81D2Pelementpicksupbeforethetimerofthe81 DIPelementpicksup.The frequency rate of change functionis not triggered if the 81D1P ; timer picks up before the 81D2P timer picks up.In addition to the calculated pickup timedelayprogrammedintothe81D1Ptimer(specific to the desired frequency rate ofchange)an identical 5 cycle pickup delay was added to the 81D1P and 81D2P timers toprovidesecurity.See figures 1 and 2.The SEL-351-7's directional:power element (3PWR1)was used to supervise the under-frequency rate of change function.This elementis set for a 20 MW load through_HLS1B17in the direction of the MEA system.A 5 cycle pickup "clay wwas added to the .power element for security. 1 of5 gs|HLS1B17 Power Supervised Under-Frequency ROC Relay Operation oo In addition to the power element a directional phase over-current element also supervises_the under-frequency rate of change function.This element (67P1)is set for 20 MVA or , 84 Amps Primary through HLSIBI7 iin the direction of the MEA system.a .A directional ground elementis used to block tripping ifa'ground faultis detected.This element (67G1)was set at 87 Amps Primary (310)for a +/-15%imbalance with a load of80MVA.Blockingisactive as long as the 67G]element iis picked up.The power supervised under-frequency rate of change function canbe enabled anddisabledremotelybyGVEAdispatchviatheHealyPlantRTUandinputIN102onthe..'relay.The functionis enabled and disabled by pulsing the relay input via the RTU SBOcontact.Status of the protective function of the relayis provided from the relay toto the.Healy Plant RTU. :Typical GVEA alarming,event triggering,etc is provided.This relay does not provide any other protective tripping Ge line faults,under-voltage,etc)... The relay will trip when all of the following occur:-Protective function must be enabled by dispatch,,--System frequency must drop below both the 81D1P (59.80 Hz)and the 81D2P(59.60 Hz)set-points.-System frequency must decrease at a rate greater than 1.5 Hz/Sec between the ”81DIP and 81D2P set-points.,--Atthe time the under-frequency rate of change function iis picked up: o The directional power element (32)must be picked up (greater than 20MWflowinginthedirectionoftheMEAsystem).” o ..The directional phase over-current element (67P-1)must be picked up (greater than 84 Amps or 20 MVA flowingin the direction of the :MEA system).-©The directional ground over-current 'element (67G-1)must nottbe picked up (greater than 87 Amps 310 and fault forward).o ALoss of Potential (LOP)condition must not exist.o Measured 138 kV bus voltage must be higher than 25 Vv secondary " (under-voltage block on under-frequency elements,27B81P) The relay is set with typical security delays (5 cycles)for the under-frequency and .directional power elements.The under-frequency element security delays have the obvious effect of lengtheningithe operating time of the relay but are necessary to avoidmis-operations.The first under-frequency set-point and the range between the two.under-frequency set-points also effects operating time.As described above systemfrequencymustdecaybelowbothunder-frequency set-points to trigger the under-_.frequency rate of change function.The higher the first under-frequency set-point is setthelesstimeittakestoreachtheset-point (given a fixed decay rate from 60 Hz).System 20f5- o*HLS1B17 Power Supervised Under-Frequency ROC Relay Operation frequency must also pass through the second under-frequency set-point to allow rate of change detection.The greater the range between the two under-frequency set-points,the greater the operating time.As currently set,the relay will operate in 18 cycles fora 1.5_ Hz/Sec frequency decay rate from 60 Hz.The relay will operate more quickly for faster decay rates.Experience may show that the range between the under-frequency set-points can be reduced.If this is possible,the relay operating time can be decreased. i iho _p--_HNQERFREQUENCYRATEOFCHANGEFUNCTION a -ip St:(er me -aoS -”ENABLE/DISABLE . rs{81-2 -8102P_"9 -81D2T_:{ .;nel ' -| ©92-4 'S$ SPwRI | '|0 ' a (erp.1 --S2E1 i}3 :cs| is ii(erc-1 -S8281 '-s7e1___} {Lop _LOP 1LOP ! et .tLATCH!_1741N102pitaLt Figure 1:Logic © 3 of5 t Frequency Rate of Change Delay (Cycles) OF:Desired Frequency Rate orf Change (H2/Sec) 8101P:Under-Frequency Setpoint 1 (Hz) 8102P:Under-Frequency Setpoint 2 (Hz) 8101P>81D2P 32-1;Directional Power 67P-1:Directional Phase Overcurrent 67G-1:Directional Ground Overcurrent LOP:Loss of Potential 1N102:input #102 "$°60°[(8101P-81D2PydF} TRIPALTI°1LOP*167G1°67P1""3PWR1°(181D1T6102T) "HLS1B17 Power Supervised Under-Frequency ROC Relay Operation _.Figure2:Timing 4of5 fof $9.6-L _ i Fo|i 1.0 He/See a =|_ , &T =7 ; ce 9.0 i 5 j o-F Bo |: 2 |G 4 2.0 Hz/Sec 2 |7 , |. i |ot.| i. t 580 at |{a + 0.1 |2 F)50 :Time (Cycles) soe doe -": .i | ;"e1DIT co = 1.0 H2/Sec #102 ; oo a1D2T -.! TRIP L.:4 .I IP ;- Hi {je1D1T 2.0 Hz/Sec s102P t ce 172)i TRIP i HLSIB 17 Power Supervised Under-Frequency ROC Relay Operation Conclusion - A power supervised,under-frequency rateof change relay function has beenimplementedattheHealysubstation.The intent of this installationis to disconnect the Intertie from the GVEA system to avoid supplying energy to the MEA system in theeventthatMEAhasopenedthe115kVloopbetweenPlant2andTeelandandthePt.MacKenzie to Teeland 230 kV line trips.; This relay will trip Healy substation breaker HLS1B17 if a frequency decay rate of 1.5Hz/Sec or greater is measured and 20 MW of power is flowing through HLS1B17 toward:the MEA system.Other protective elements supervise the under-frequency rate ofchangefunction.The relay can be enabled and disabled remotely by dispatch via theHealyPlantRTU..Indication of relay status (enabled or disabled)iis provided to>dispatch_via the RTU. 5 of5 | |14-( Intertie Operating Committee Meeting Alaska Intertie | Special Meeting ,February 19,2004 -10:00 a.m. Roll Call: John Cooley,CEA Doug Hall,AML&P Bob Drake,MEA Tuckerman Babcock,MEA Bob Day,AML&P Henri Dale,GVEA -teleconference Jim Susky,HEA Art Copoulos,AIDEA/AEA Karl Reiche,AIDEA/AEA The purpose of this special meeting was to discuss the Alaska Intertie uneven snow loadmitigationresolution. Three options are: 1.Improve the monitoring system but don't make any physical changes. 2.Shorten the insulator string and get rid of one of the conductors and that should get about 14 feet of additional clearance. 3.Inset structures. The relative costs were: Option 1 -less than a million Option 2 -around $6 million Option 3 -around $18 million Discussions ensued regarding the three options and what the committee wants to do.Henri Dale asked about the estimated amount of time the Intertie would be out of service for some of those options.John Cooley responded that he heard it was going to be about 12 weeks for option #2.Doug Hall mentioned that they were supposed to have from the reliability relay subcommittee was an estimate of the potential decrease in the rating of the line.John Cooley responded that they came back saying that they didn't think it made that much difference that reactive power is basically caused by the spacing,which-isn't changing,and the resistance doesn't make material difference on parameters,therefore there should be no significant difference in the ratings.The Northern Intertie is single-conductor 230 from Healy north toFairbanks.The proposed upgrade rebuild between Douglas and Teeland would be a single-conductor 230 line.They didn't see it as making a noticeable difference. Mr.Copoulos stated that the two new mines in Western Alaska are getting further along and one of the options being discussed is a power plant at Beluga transmission line from Nenana up to Donlin Creek.That would involve sending power from Beluga across the Intertie up to Nenana and then out.This is all just talk and is extremely conceptual at this point. Henri Dale stated that they have 100%MITCR for the North direction. Page 1 of 3 CEA's position that removing one conductor and shortening the insulators would be a good idea,but not to modify the structures -no changes with the guying and the yokes.Mr.Cooley stated that it was designed to be flexible. Doug Hall stated that it was designed to be flexible with the weight of the bundled conductor. Outages noted were:January 10,2000 -three outages January 26,2000 -one outage December 2000 - February 2003 -two outages Between 1993 and 2000,there were no outages. Henri Dale stated that his position was that the shortening insulator drop in conductor is not his first choice because it would mean taking a step backwards.Does not want the Intertie down for a long period of time and definitely doesn't want to decrease its capability.- Are there other engineering solutions to allow greater transfer either North or South? Handout from CEA outlining a proposed solution as follows: Alaska Intertie Uneven Snow Loading Mitigation Resolution The !OC [recommends that the General Managers]requests that AEA perform the following repair/modifications to the Alaska Intertie as soon as practical to minimize the chance of accidental contact between the conductor and the general public: 1.Direct the Southern Operator to document and quarterly report back to AEA and the IOC the results of their snow load monitoring efforts. 2.Remove one conductor from each bundle in the line section north of the Douglas Substation to the Susitna River. 3.Shorten insulator strings on the single conductor spans to 230 kV. 4.Resag the single conductor spans. 5.Insert mid-span structures only in those spans where there is evidence of a significant probability of interference between the conductor and snow machines. 6.Replace the Caswell Lake Road guard structure. 7.Retain the existing yokes and guy arrangement. The IOC agrees that the annual debt service incurred by AEA for these repairs/modificationswouldbeincludedintheannualexpensesfortheIntertieascalculatedinSection8ofthe Agreement. The group discussed the different aspects of each of the three options. Page 2 of 3 aSixict/,ELS 9 ..ee ,py”7S eve ¥iGd3 PTO > Doug Hall mentioned that pertaining to #6 on the list -the Caswell Lake guard structure has been removed -per Tom Kelly." The state has a concern about future capacity losses,and would want to quantify the impact of losing a conductor. Discussion Results: °Ask Del LaRue to take a second look to proposed changes by CEA to his recommendation #2. °Look at the impact of CEA's proposal and see what the impact is if we don't do anything to the yokes and guy wires. °Average cost per inset tower for a tangent structure or double-dead-end. °Have Del estimate where the double-dead-ends or tangent towers might go in terms of which ones have the most significant risk due to access and topography and where there were past problems. °Have Del at the April meeting. °Keep General Managers informed. °Have the two towers fixed and the SVC replaced funded by budget over a couple of years. Henri also noted that the battery bank at the SVS didn't hold out as well as had been thought.Batteries are about 20 years old and need to be replaced.Do a drain check and see how long they will last.If those are the originals,then we need to put some in the budget to replace those. By the April meeting the group should have some better ideas of what it will cost to mitigate the snow load problem -in the range of going with the bonding issue or not.A decision can be made at that time of putting one of the SVSs into the next FY budget or put it in the whole package once we have a bigger picture of what the mitigation is going to be costing.The same goes for the towers.Bid both towers as one job.Finalize in April at meeting. Page 3 of 3 BOC..(=|.re _/naedetobeet.eeeBee|faa anewi Spectal Att - SULMS ceptions.g | OpFreon _¢._ a option P- 12_weeks___Dewwting > |Ratiy =Reackane _cevusedl by ap aOLD. lansd7.| | pty HH |:i bff | ri -- LK tLkSH 70)[M fre { 230_Noth /|3 130 Decgals [ C hepach _-Dot mesa wf Bay t=Yoke _Vi Com for tolto Mody vay etree _|bylmeeaayngt__get ws aa [[or Reddesyney [oad tb a hnceheeelHow -__Oglim =nf _Evest choice | _ Due_fo__ Step BackwaRDs! ane DOT_wANT TODECREASE ___ CaraAB(e TY. her midlmspan_shrichuneO(whore snowmadcunevot],whne hod past piston oe€--Cas-well-Lahe-Read <n Impact mn Suture.loads -_Mocth+Seats, |val +S_setory.|_-_¥)7 |MEA , : - =]:-----------aloo ©Chugach rpc __0_fo_*2 :ne chag m yeke +Gry 7 RELook@uewo-Zp Dole kia.a OG focal tely -oe ,[Tretok . A J >N\bby =Fide LOADS wpedkeerce_wl Chapwl]new other od GceaL End [-7 ____rllage,_comperantee i Sogn |LEG.All spels had proton|2 LengSpan.a 1/200 -CSTO(33)Roadl Qnesing Z_peplecretbg Meef _silk DL.to_fpr Newby">i=ee|Pa ae aetower_--tewget__strnclury ,=o bbe dood -en -&$neo.-ee bo eshe mM =pe pull--__eee s 7 v Fy ' , . 1 4 ' aa . ' , -. © - - = po noe . 2 : te ---- _ ' . SVC =|Funding Optrnp_a8 _therg,_bh |- . 1 |* 7CowaAbl-_-= |i : i e ae0 mM Apcil_>$0 Con TD.i:Funduing___Source,4 aa:,(forall 3.y-package€ NT rp ree : a - - ne (Sea wenee feeee \3\ALASKA INTERTIE OPERATING COMMITTEE MEETING AGENDA THURSDAY,JANUARY 15,2004 BEGIN AT 10:00 A.M. I.Adoption of prior meeting minutes II.Approval/Modification of agenda II].Committee reports and correspondence Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee Budget Subcommittee Intertie Status Report Communications Received IV.Visitor's Comments Related to Items on Agenda V.Recess,if needed VI.Work Session Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee Budget Subcommittee Outage Reporting Upgrade/Extension/Repairs of Intertie VII.Formal Operating Committee Actions/Recommendations VIII.Subcommittee Assignments Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee F.Budget Subcommittee IX.Determine Agenda for Next Meeting to be hosted by GVEA in April X.AdjournmentHOmMMOOwDmOmmMOOW>mow>Meeting Location:Anchorage Municipal Light &Power Conference Room 1200 E.First Ave. Anchorage,Alaska 99501 mUane ine| fr"||| / 4 eps i.ee mee eeekear metnan:em ne ee eeeeree em ee er ee rtemeeinecee cee et care ae At ennaeeeeen Q |.a _y-=fs;le Ockobar__ommutes ne oo ieneasI| So7 Bel ecbty --ro] | earsee NPUTOOS 5S 8...ST a. >Hak SUcs _neabGanmnRireek_@ Bon+NereD ze wW\plang BUT : | | | 7<Aue,to Choy?+errant Soudhaiy |Pena ,| 7 .,ee PdAamallerygeenfsgtbaeetaeettatprocegenernyGaneien.Soeetnefounrye7eneLt.wheecto+Paneres oe 4 1 : . - i . |.0 ||907-. id .. ce ommonteakiny ,ne ns -Stole __vs_.@LT weACS a CK ts tsae SUC._ _.al TE...i _'Healy,unk 9S ih.__colddl_be_Aa -2| ihits of relate _& Lo bee ok wit(Co.ot WAZ i _-OS"!buts -Aaiorors,-_. inahSteen=(Yo snow_,snow)Hopton8 at BL ghee avert complet_ oe Bs tho Sen tts heb at ean :always.design-battshaniawert.craeg:optim 3.ge say Come coud urmyo ph PiNe Lari en eG a ie en a +.-+SeaeneeeSoernenmeerrataneAtem al.se_cay SV ehoy feeee s-aconan.eoo}neetentsintesamenneefreennDineen Pocoteeaespel nts,gm esve ©Carse) oo.ae RISES ROS,suedee-Aste ot ine biehapg ghows ___;__Noo workot ee.measure Risk? ta._i3__dravte_-Spal,_\__Dag_on__wt _ eesexier Qn uh ©i.fon d=SEASON =et worl 7 _E vx a : 7 _eee bh oe a MECC BQ 'uat 7 a : > 8 ---- .-ALL.-we we ee ee .___;2 °._.4 mck Ope _Hb wd. { ble :=bali ba 0SKY Cash reduce GoneHEY He ='Hidhey oneness c.ti A f-229 -onal{ idi|' }=Sd audeney_._20_yra virhece grt_vely (ou --O See.SLYS is bbe. =Doe eecommerdil Wong syn.aa 905 i iil =Caswell.- Bvard.Tours.-Bewmeoel o 9 {Phase are tame one feme._2 phete DnNCc linomeltia Setshint workerCause pull_m 7...- E be .rec ttinyLoad."oth_ -_kre.when poh Yo 1006 4 keno Thi happend couple tilnty om Yop of Ry thet Agapenal! "SDLpbyore dea whet >Fin=he Con saga it] "Frolom Shula oll OER OS 4 bea: :: +AyNEK_Orer oe ,/a CEA|Gor.Mowmachyes2)ORVBaldaclngadrove._opnr_fevee|bafire Fant). |Tockuman -__someme.__lrohXe 1F_Sowe ene Ax?! Lae tor-ma TDraserencee__coslor RUE er ned Failed stody with -assomptingT3SACRef._Proecton Com =look.@ System.-onpedb eno |=4.mi (yw...-Cor-SUS.ey) | "ft oe ee@_Look.a SRE __wneatorenred__BabechLook<<Records -Dipatth voos___ beable.to Fang _ | i om ur OMK 36.__Record s_oF Chea nee =wit||oo | -$isaga ca -isI im 1 eganncln5 - : : ' "BH vpgrale =3 Orbe test por mo =Sea)nevk stey m___arh tre Fred be@mMt? -werk fo__uby i __5itea_Cno_actren)ae Make RR fo home GM'S Reed RQ a er fee ee ee1a Snes Ce Se Se, Ces Cs Ce: ct Siscnaes Sica: Sniasuen ees Sennen ween fee ne we we sien gy i ie F a I: -[s ASE. QO Sad OF wokforabbjtrodeto.actin _aevant.Resolute.Oo .|MS tek Naw plank tt took of Spn_q__ _..Fach =Bales .-Tonga De om -on ef eeeeeeeel,_ !i 7 Spm =detfer apts BY a Te -GUeA_proatled spin,backedup_wof|benderAE_Heh costConsiderar.QUER_Pre ahiBerd.Poest imshuhes,col Ho thar utility ee route,back.-up___aFtea_te, :BESS.4S MO_Ren ST mnurbes _ _Meg -be _alofe .te__8 R We___Broth,eget i::;-_--_->EL -Mbe O_o / ry.2g ;; z ::- t « + -: ' :' .Bs - ,-. . . +5 - ; |:N 0 tury oo Rayan =nud mre __M Rate > --(Rec.Pree._w(Wvor.a ne . nxn |Feber |qh -Thursday 40 Gnalre@ Hf +Scope. be palbe 1 eu - td i. aens N * Page 1 of 1 Art Copoulos From:Robert C Drake [rcdrake@matanuska.com] Sent:Wednesday,December 17,2003 11:06 AM To:'Art Copoulos' Subject:RE:Stevens High Side Switches Art:Everything else at Stevens was purchased by and belongs to MEA.The only question raised at the meeting was the ownership of the high side switches. Bob From:Art Copoulos [mailto:ACopoulos@aidea.org] Sent:Wednesday,December 17,2003 8:09 AM To:'Robert C Drake' Subject:RE:Stevens High Side Switches Thanks Bob.|lost about a weeks worth of email that week so |never saw this. |can't remember the discussion but was that the only equipment in question?What equipment is state owned?|was thinking we needed to inventory all the equipment at Stevens to sort out ownership. Art 12/17/2003 From:Robert C Drake [mailto:rcdrake@matanuska.com] Sent:Tuesday,December 16,2003 4:58 PM To:Art Copoulos Subject:FW:Stevens High Side Switches Art:|sent the following to you last month.Is there anything else you need? Bob From:Robert C Drake [mailto:rcdrake@matanuska.com] Sent:Friday,November 07,2003 3:10 PM To:Art Copoulos (ACopoulos@aidea.org) Subject:Stevens High Side Switches Art:There was a question at the last IOC about who owned the switches on the intertie at Steven's Substation.After researching this today it appears MEA,thru AEG@T,owns the switches.MEA purchased and installed the switches,but evidently since MEA is not a direct member of the IOC, we could not tap the line.Therefore,AEG&T,the member of the IOC,owned the switches as far as the lOC is concerned.This was communicated to Stan Sieczkowski in a letter from Samuel Matthews (Homer Electric writing on behalf of AEG@T)dated 12/15/1993. |hope this clears this up. Bob Drake ALASKA INTERTIE OPERATING COMMITTEE MEETING AGENDA THURSDAY,OCTOBER 16,2003 BEGIN AT 10:00 A.M. I.Adoption of prior meeting minutes II.Approval/Modification of agenda III.Committee reports and correspondence Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee Budget Subcommittee Upgrade/Extension Subcommittee Intertie Status Report Communications Received IV.Visitor's Comments Related to Items on Agenda V.Recess,if needed VI.Work Session Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee Budget Subcommittee Outage Reporting .Upgrade/Extension of Intertie to TeelandVII.Formal Operating Committee Actions/Recommendations VI.Subcommittee Assignments Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee Budget SubcommitteeIx.Determine Agenda for Next Meeting to be hosted by ML&Pin January X.Adjournment T"HOMMOAWpSHOmMMONw>moOwD>Meeting Location:Chugach Electric Assoc,.Inc. Energy Supply Conference Room 5601 Minnesota Drive Anchorage,Alaska 99519 ALASKA INTERTIE MEETING October 22,2003 10:00AM AIDEA/AEA Board Room AGENDA 1.Extension of Right to Use MEA's Hollywood-Douglas Line a)Negotiating Roles b)RCA Actions c)Future of Intertie Upgrade Project 2.Concerns with Intertie Operating Agreement a)Funding for Capital Repairs (SVC's,Tower Repairs,etc.) b)Maintenance Contractor on Southern Portion c)Snow Load Concerns 1)MEA's Letter of September 11,2003 2)IOC Recommendations re:SLMS 3)IOC-Funded Independent Assessment 3.Future of Intertie a)Utility Purchase? Alaska Industrial Development and Export AvAID Alaska Energy Authority MEMORANDUM TO:Ron Miller Executive Director FROM:Art Copoulos M¥CY Project Manager DATE:October 21,2003 SUBJECT:Alaska Intertie Problems An Intertie Operating Committee (IOC)technical subcommittee,in its Alaska Intertie Upgrade Report for the |OC dated October 2002,identified several significant problems on the Alaska Intertie,including problems related to SVC repairs,Tower foundations,and Intertie Snow Loading.Matanuska Electric Association (MEA),in a memo dated September 11,2003,also highlighted concerns related to Intertie Snow Loading and indicated their intentions to not renew their maintenance contract.These issues were also discussed at the IOC maintenance subcommittee meeting October 14,2003,and at the 1OC meeting October 16,2003.A summary of these specific problems follows: SVC repairs: The 3 existing SVC's on the Alaska Intertie are in need of replacement parts and many of those parts are no longer manufactured or are difficult to locate.A recent study by Electric Power Systems (EPS)indicated that due to their obsolescence,obtaining necessary spare parts for the SVCs could cost approximately $500,000.00.Intertie downtime or operation at a reduced operating capacity while needed parts are reverse engineered could also be incurred.This problem has been understood for a number of years and the magnitude of the spare parts issue was recently quantified with the EPS study.As an alternative,ABB recently completed a budgetary proposal for various upgrade options on these SVCs. On October 14,2003,the IOC maintenance subcommittee asked that ABB update their previous proposal with the intention of recommending to proceed with annual controls only retrofits on the SVCs,providing acceptable terms can be arranged.On October 16,2003,the lOC passed the following motion:"The IOC endorses the maintenance subcommittees' recommendation to replace controls on all 3 SVC's with commonality of spare parts,repair 813 West Northern Lights Boulevard *Anchorage,Alaska 99503 907 /269-3000 *FAX 907 /269-3044 *Toll Free (ALASKA ONLY)888 /300-8534 *www.aidea.org Memorandum October 21,2003 Page 2 of 4 towers #274 and #297,and requests that AIDEA,in consultation with Participating Utility General Managers,suggest a means of funding that would be repaid through Intertie Revenue." Tower foundation repairs on towers #274 and #297: The downhill (East)foundations for Towers #274 and #297 in the Chunilna Ridge area of the Alaska Intertie have experienced significant settling,rotation,and lateral movement.Cable and turnbuckle assemblies were tensioned between the legs of the towers as a "temporary fix."As a part of an ongoing and active inspection program,the towers were inspected this summer by MEA and the results,which were faxed to the IOC on September 9,2003 (attached),indicate just under an inch of anchor bolt slippage on anchor bolt E4 on the East foundation of tower #274.Based on previous correspondence,Dryden &LaRue believes "the foundations likely will continue to move in small amounts,which may eventually lead to an irreversible structure failure"and has recently recommended "that a permanent fix be implemented at these two towers." The IOC and Intertie maintenance subcommittee have discussed the need for a permanent fix and the possibility of having spare Lindsey towers on hand to replace these towers in the event of a catastrophic failure.A repair is complicated by the lack of vehicle access. On October 14,2003,the IOC maintenance subcommittee recommended that the IOC fund repairs on both towers.The !OC maintenance subcommittee also continued to pursue evaluation of the purchase of spare Lindsey towers.On October 16,2003,the IOC passed the following motion:"The IOC endorses the maintenance subcommittees'recommendation to replace controls on all 3 SVC's with commonality of spare parts,repair towers #274 and #297, and requests that AIDEA,in consultation with Participating Utility General Managers,suggest a means of funding that would be repaid through Intertie Revenue."The approximate total cost of these repairs is $2-3 million. Intertie Snow Loading: The IOC has recognized certain risks related to snow loading of the Intertie and there have been prior reviews of the problem.MEA documented their concerns regarding the extent of the problems related to the Snow Load Monitoring System (SLMS)in the attached memo dated September 11,2003.MEA noted in that letter that "it has been known since at least 1990 when AEA ordered warning signs posted,that the Alaska Intertie was designed with too much flexibility to meet this standard (prudent utility practice)under the unbalanced snow and/or ice loading conditions that commonly occur in winter between Douglas Substation and Clear Creek."MEA recommends that the line be de-energized in the winter snow and ice season,that it be patrolled daily,and that grounding equipment be installed to discharge accumulated static electricity. On October 14,2003,the IOC maintenance subcommittee supported continuing the current practice of snow load monitoring as a way to mitigate the risks associated with snow loading of the Intertie.On October 16,2003,the |OC passed the following motion:"The |OC considers the current Snow Load Monitoring Practices consistent with Prudent Utility Practices and the Intertie should not be taken out of service absent a known specific problem." Memorandum October 21,2003 Page 3 of 4 Maintenance Contracting: In addition to these problems,MEA has announced its intentions to not renew its maintenance contract with AEA,effective September 30,2004. AEA Staff Recommendations: SVC repairs: AEA staff concurs with the IOC recommendations that all 3 SVC's with commonality of spare parts be repaired.AEA should recommend proceeding with development of a work plan and repairs in a timely fashion.The work plan should include recommendations on how the SVCs should be repaired including an analysis of options;an assessment of the failure risks and costs associated with potential Intertie downtime or instability that could result from not addressing problem areas;a timeline to complete the work so that extraordinary costs,risks,or extended outages are avoided;and any other items that the IOC feels is needed to be addressed.Much of the work plan has been completed in work previously performed by ABB and EPS. Tower foundation repairs on towers #274 and #297: AEA staff concurs with the |OC recommendations that towers #274 and #297 be repaired.AEA staff recommends proceeding with development of a work plan and repairs in a timely fashion. The work plan should include recommendations on how these problems areas should be repaired including an analysis of options;an assessment of the failure risks and costs associated with potential Intertie downtime or instability that could result from not addressing problem areas;a timeline to complete the work so that extraordinary costs,risks,or extended outages are avoided;and any other items that the lOC feels is needed to be addressed. AEA should also support the IOC maintenance subcommittees'efforts to determine the feasibility of acquiring spare Lindsey towers. Intertie Snow Loading: AEA staff concurs with the |OC's October 16"recommendation that current snow load monitoring practices should continue;however,AEA staff also recommends the IOC hire an independent engineer to evaluate the operational risks associated with the snow loading problem and the effectiveness of the current monitoring program.The independent engineer should recommend whether any improvements are needed to continue operating according to prudent utility practices. Maintenance Contracting: MEA has announced its intentions to not renew its maintenance contract with AEA,effective September 30,2004.AEA should solicit participating utilities'interest in assuming MEA's role of Memorandum October 21,2003 Page 4 of 4 maintaining the Southern portion of the Intertie and determine their interest by November 15, 2003. Attachments AC:sd H:\ALL\sdean\lOC\Repair Action Comments.doc Soo se Ne 'nea Se ita he ax .qe Jul 4.3,3:/ROWE Os."HOUNDATION MONIT.«ING "4! ae Date Measured:09-Aug-99 23-Jun-00 20-Aug-01 /SJv/OF 'oe,8MeasuredBy:|GDH GDH GDH RetBeDistance,D1 :-: Distance,D2 --- Distance,D3|_50.85 ft.|50.82 ft.50.85 ft.|94-6 a Difference in Base Elev.|0.50 ft.-1.80f.|.62F >A Guy Tension,Ahd (North)snug snug snug oo . Guy Tension,Bk (South)snug snug snug WEST FOUNDATION Slope,E.-W.|0.0 deg.0.0 deg.0.0 deg.O _Slope,N.-S.(North low)3.0 deg.[3.0 deg.3.0 deg.50 Anchor Bolt Slippage,W1 1.3 in.1.5 in.1.5 in.125° Anchor Bolt Slippage,W2|1.5 in.1.6 in.1.8 in.etAnchorBoltSlippage,W3}_0.4 in.0.5 in.0.5 in.. Anchor Bolt Slippage,W4]_0.0 in.0.0 In.0.0 in.0-0 EAST FOUNDATION Slope,E.-W.(East low)}2.0 deg.2.5 deg.25deg.|]3Slope,N.-S.(North low)|_11.0 deg.|11.5 deg.11.0 deg.|sf.o be9AnchorBoltSlippage,E1 5.7 in.5.8 in.5.9 in.a3AnchorBoltSlippage,E2|7.6 in.7.9 in.8.0 in.2.75" Anchor Bolt Slippage,E3}7.3 in.7.4 in.7.6 in.Gs4sAnchorBoltSlippage,E4|5.3 in.5.1 In.5,3 in.O.12S TOWER NO.297 FOUNDATION MONITORING Date Measured:09-Aug-99 23-Jun-00 20-Aug-01 Measured By:GDH -GDH GDH Distance,D1]23.10 ft.22.80 ft.23.00 ft.Piers Distance,D2]24.50 ft.24.60 ft.24.70 tt.|27,68 Distance,D3 47.53 ft.[47.40 ft.47.62 ft.|YP.PP :Difference in Base Elev.|1.65 it.1.60 ft.1.60 ft.Lo 4 Guy Tension,Ahd (North)|loose loose loose ([o0se i Guy Tension,Bk (South)|__snug snug snug Sanus 8'WEST FOUNDATION a Slope,E.-W.(Eastlow)[1.5deg.|1.5 deg.1.5 deg.10} Slope,N.-S.(North low)}1.0 deg.1.5deg.|1.5 deg.Ke) Anchor Bolt Slippage,W1 0.2 in.0.2 in.0.2 in.("4 4 Anchor Bolt Slippage,W2|_0.0 in.0.0 in.0.0 in.6.0 Anchor Bolt Slippage,W3|__loose loose loose loos © Anchor Bolt Slippage,W4|0.8 in.0.8 In.0.8 in. 7s EAST FOUNDATION i Slope,E.-W.(Eastlow)|2.0 deg.2.0 deg.3.0 deg.1-0Slope,N.-S.(North low)|_11.0deg.|125deg.|135deg |soiAnchorBoltSlippage,E1{3.6 in.3.8 in.3.6 in."f|Anchor Bolt Slippage,E2}0.0 in.0.0 in.0.0 in.oo +Anchor Bolt Slippage,E3{__0.0 in.0.0 in.0.0 in.©@-° 4 Anchor Bolt Slippage,E4]1.5 in.1.3 in.1.3 in.[2 "and hand level.4al4 "4 Dryden LaRue,Inc. Instruments used to take measurements:rag tape,tape measure or ruler,magnetic base level/angle finder, *o.SEP 11 '@3 @4:1GPM MATON!SKA ELECTRIC P.1 a Matanuska Electric Association,Inc. P.O.Box 2929 Paimer,Alaska 99645-2929 Telephone;(907)745-3231 Fax:(907)745-9328 September 1 1,2003 Ronald W.Miller Executive Director Alaska Energy Authority 813 West Northern Lights Boulevard Anchorage,Alaska 99503 Dear Mr.Miller: Pursuant to the Alaska Intertie Maintenance Agreement Between Alaska Power Authority And Alaska Electric Generation and Transmission Cooperative,Inc.(AEG&T),dated January 23,1987 (hereinafter referred to as "Intertie Maintenance Agreement”),AEG&T was obligated to maintain the Alaska Intertie from Teeland Substation to approximately.Honolulu Creek.AEG&T's area of maintenance responsibility included the segment of Alaska Intertie between Douglas Substation and Clear Creek where unbalanced snow and/or - ice loading has resulted in less than acceptable ground clearance.2 bo As you may be aware,in 1987 AEG&T assigned its Alaska Intertie maintenance obligations to MEA,The Alaska Power Authority consented to this assignment on May 21,1987, MEA has investigated liability issues related to the segment of the Alaska Intertie identified above.Based upon this investigation,and upon the advice of counsel,MEA is convinced that significant issues of public safety related to this Alaska Intertie segment must beresolved.For the reasons discussed below,MEA believes that the ongoing failure to resolve these known issues creates an unreasonable and unacceptable level of liability risk to MEA, the participant utilities,and possibly AEA. Prudent utility practice requires that transmission lines be designed so that they remain sufficiently above ground level under all reasonably anticipated conditions to prevent vehicles or pedestrians from coming into contact with the lines.It has been known since at least 1990 when the Alaska Energy Authority (AEA)ordered warning signs posted,that the , Alaska Intertie was designed with too much flexibility to meet this standard under the unbalanced snow and/or ice loading conditions that commonly occur in winter between Douglas Substation and Clear Creek.Based upon the studies conducted to date,MEA believes that the only effective means of resolving this problem is through the installation of intermediate towers between the existing towers on this segment of line. 7 we SEP 11 '@3 @4:11PM MAT KA ELECTRIC P.2 Ronald W.Miller,AKA September 11,2003 Page 2 of 3 'AEA has conducted snow and ice load patrols in recent years.However MEA is concerned that as maintenance contractor for the section of line with known winter clearance problems, it may also be named as a defendant in any litigation over injuries resulting from winter contact with the Alaska Intertie even though the problem is design related.The combinationoflongknowledgeofthishazard,the potential lethality of the hazard and knowledge ofoptionsforremovingthishazardclearlygiverisetoahighlikelihoodthatajurywouldfind someone liable for the injury of any person unfortunate enough to come into contact with the line. Therefore,MEA requests written clarification from AEA that mitigation of snow and ice loading on the Alaska Intertie so as:'to achieve adequate ground clearance is not a 'maintenance activity for which MEA is responsible under the Intertie Maintenance Agreement.Further,MEA requests a written agreement from AEA that AEA will unconditionally defend,indemnify,and hold harmless MEA from any and all claims arisinginanywayfromwintercontactwiththeAlaskaIntertie.If AEA cannot provide MEA withthiswrittenclarificationandagreementbySeptember30,2003,then MEA hereby gives notice of termination of the Intertie Maintenance Agreement pursuant to Article IT,Section 2.1.1 of that Agreement,effective September 30,2004. It appears to MEA that until such time as intermediate towers are installed,de-energizing the Alaska Intertie during the winter when unbalanced snow and ice conditions occur would 'eliminate the risk of fatal contact with the energized 138 kV line resulting from the Alaska.- Intertie transmission lines having inadequate ground clearance,De-energizing the Alaska - Intertie will probably require installation of grounding equipment to mitigate accumulations.of static electricity in addition to opening the line at each end.While serious blunt trauma-injury could still occur from such contact,particularly to snowmachiners,skiers,or dog 'mushers traveling at high rates of speed,the burn injuries commonly incurred through physical contact with an energized line would not complicate such injuries. Section 7.3 of the Alaska Intertie Agreement specifically grants AEA ultimate authority to _reduce energy transfers on the Alaska Intertie based upon safety considerations.The exercise of such authority appears to be an operational function rather than a policy decision, and thus AEA may have to share in any liability that may arise should someone come into contact with a low hanging energized line.Therefore,in order to protect the public and reduce liability risk to AEA and the Participating Utilities,MEA strongly recommends de-energizing the Alaska Intertie during winters until such time a intermediate towers areinstalled. Although MEA strongly suggests that AEA de-energize the Alaska Intertie during the wintersnowaridiceseason,that action by itself will not eliminate risk to the public and potential liability to AEA or the Participating Utilities.MEA also strongly suggests that AEA pay tohavethelinepatrolleddailyduringthewinterwithacrewtrainedtosafelyrelievesnowandiceloadingfromthetransmissionlinesandtodischargeaccumulatedstaticelectricenergy.MEA would consider a failure of AEA to exercise its authority to resolve the safety issues discussed above to be a material breach of the Intertie Maintenance Agreement,MEA Sad SEP 11 '@3 84:12PM MAT KA ELECTRIC 'P.3 Ronald W,Miller,AKA September 11,2003 Page'3 of 3 hereby specifically reserves its ability to exercise the our rights under Article II,Section 2.1.2,regardless of the status of our notice under Section 2.1.1 above. MEA understands that AEA and the Participating Utilities are in the process of finalizing the 2004 Alaska Intertie budget.Installation of intermediate towers in the Douglas substation toClearCreeksegmenttoresolvetheunbalancedsnowandiceloadingproblemhasbeen previously estimated to cost over $17 million.This critical public safety project could easily be paid for with funds appropriated to AEA by 2002 HCS 'CSSB 2006(FIN)am H,atSection78(c¢),which states: (c)The sum of $20,300,000 is appropriated from the Railbelt energy fund (AS 37.05.520)to the Department of Community and Economic Development,Alaska Energy Authority,to upgrade and extend the Anchorage to Fairbanks power transmission intertie to the Teeland substation. There is no higher public purpose for the utilization of public funds than the protection of human life,With the funds now available,there can no longer be any legitimate justification for failing to proceed with construction of this upgrade to the Alaska Intertie,if year-round benefits are to be enjoyed from past public investment in the Alaska Intertic. If you have any questions,please direct them to Tuckerman Babcock or Don Zoerb,Sincerely,wd.Conny--Wayne D.Carmony General Manager JW/prw Alaska Intertie Operating Committee Meeting Minutes Thursday,October 16,2003 10:00 a.m.-Chugach Energy Supply Conference Room Roll Call: Henri Dale Golden Valley Electric Association (GVEA) Steve Gilbert Brian Hickey Art Copoulos Alaska Industrial Development and Export Authority (AIDEA) John Cooley Chugach Electric Association (CEA) Robert Day Anchorage Municipal Light &Power (AML&P) Bob Drake Alaska Electric Generation and Transmission (AEG&T) Doug Hall Ed Rubling The meeting was called to order at 10:05 a.m. l.Adoption of Prior Meeting Minutes Minutes were adopted as submitted. Il.Approval/Modifications of Agenda Agenda was adopted as submitted. Hl.Committee Reports and Correspondence A.Dispatch The subcommittee met September 17 and the subcommittee minutes were reviewed.ML&P indicated that the unit 8-exciter problem was identified as a loose fuse similar to an automotive bus fuse. B.Reliability/Protection No meeting held. C.Machine Ratings Steve Gilbert noted that the MRC continues to meet quarterly -February,May, August,and November.The next meeting will be in conjunction with the Utility Conference in Anchorage on November 20/21. q ¢SCADA/Metering/Communications QR 9 wy” No meeting held.("2)Maintenance ZThesubcommitteemetandforwardedthreeproposalstotheIOC:rép/ace the SVC controls with the ABB proposal;continue operating with the sfow load monitoring system and ground patrols;and,repair the foundations onfowers 274 and 297.They felt that the IOC should not procure Lindsey towers.MEA has inventoried the Talketna storage yard;there are enough parts for two X towers and one single tower. Budget No meeting held.AIDEA will discuss with the GM's the possibility of making a loan to fund capital repairs. Upgrade Extension No meeting held. Intertie Status Report No abnormalities were reported.GVEA reported that the Northern Intertie (Healy- Fairbanks)went into service on Monday,10/13.The BESS is functioning as a SVC,the stabilizer function is disabled and SILOS is in manual.The BESS output steps up at each SILOS set point,it is planned 'to make this a smooth ramp in the future.BESS goes to full output on UF.No transmission tie settings have yet been added.Power flow seems to be split 50/50 between the new and old lines.The phase angle between lines with one end of the NI open with 70 MW on the old line is about 20 degrees. Communications Received AEA has received termination notice from MEA for the mathtenance contract effective 9/30/04.AEA requested the utilities submit_a_letfer of interest if theywantedtoassumethemaintenanceresponsibities(AeDwae request totookinto-the details of the ownership/control of the in-line facilities at Stevens Substatiot--"there was Adascua regarding the Visitor's Comments Related to Items on Agenda Del LaRue discussed the ground patrols with respect to the snow loading,which he contracts with Crews Construction to perform.Del desires to shift this responsibility to others.Del agreed to write a Scope of Work to be approved by the IOC,which AEA would then issue and administer the resulting contract.The contractor would report the results of the patrols to ML&P dispatch,which would also direct when the patrols were to be made.It was emphasized that record keeping of when patrols were made and the results of the patrols was very important to document that we are following the adopted procedures. V.Recess Recess was deferred -went right into work session. Vi. Vil. Work Session A.Dispatch Subcommittee The 10/1/03 outage was discussed and the need for improved communications between supervisors in the control centers was noted. Reliability/Protection Subcommittee The IOC requested that the subcommittee submit a report on the Douglas- Teeland relay work;whether the SVS at Healy was still required for Intertie operation;and,the implications on VAR flows of closing the APA-University 115 kV tie between ML&P and Chugach. Machine Ratings Subcommittee Next meeting is scheduled for November 20-21,2003. SCADA/Metering/Communications Subcommittee Need to finish up what they have been doing.They also have a task to look at metering. Maintenance Subcommittee Scheduled to meet in January and continue discussion of the SVS/ABB proposal and tower foundation repairs. Budget Subcommittee The subcommittee was requested to review the insurance status for the Intertie. Outage Reporting The reports will be modified to handle multiple events by year-end. Upgrade/extension of the Intertie MEA reported they were willing to discuss a new agreement for the use of the TLS with utilities but any discussion on extending the current lease with AEA had to be only with AEA. Formal Operating Committee Actions/Recommendations A.Adopt Maintenance Recommendation Vil. Motion No.306:The IOC endorses the Maintenance Subcommittee recommendation to replace the controls of all three SVS with commonality of spare parts and to repair towers 274 &297 and requests AEA to suggest a meansoffundingthatwouldberepaidthroughIntertierevenues.Moved by Bob Day,2" by Henri Dale.The motion passed with 4 yes votes,0 no votes and 1 abstention. B.Reaffirm operating practice Motion No.307:The IOC considers that current snow load monitoring practices are consistent with prudent utility practice and that the line should not be takenoutofserviceabsentknownspecificproblems.Moved by Bob Day,2"by Henri Dale.The motion passed with 4 yes votes,0 no votes and 1 abstention. Subcommittee Assignments A.Dispatch Subcommittee Meet and carry on with agenda. B.Reliability/Protection Subcommittee Meet and look at voltage profile with APA closed,and is Healy SVS must run? C.Machine Ratings Subcommittee Follow existing plan. D.SCADA/Metering/Communications Subcommittee Finish communication recommendation and investigation of Douglas metering problem. E.Maintenance Subcommittee Follow existing plan. F.Budget Subcommittee Review the insurance situation for adequacy.AEA meet with GM's to discuss capital funding loans. Determine Agenda for Next Meeting Next meeting will be held on Thursday,January 15,2004,at 10:00 a.m.at Anchorage Municipal Light &Power. Adjournment The meeting was adjourned about 12:45 p.m. '_@UEA __will aie sone capabilityfo"power SPVE,4 -Foley fo.peo 4S:oy etudeuhonvA;: shalt -M_.Relgy )eto Ay adameoereraeatlmMSay i LE Med um fey |mura =o ."biHepwle |,HennL=--.canh-_S Uppeh__30 MW Depph__ i on-_-heim__veon_e dan Ming iea_-_odlaptad) Dis pateh __ Mek vy Gop 4 Wily:eh =fort -Bay bsComte obNYRsC-_ANoxjai [combing wf ar/a)___Confonaves_,{="Te +(enatard)oe ddeoss.on =p Aer vs eaer|ul 'Ey ONL Wedlvreg >,SCADA=no nsst__|_AJond_4o_Nreo___ Nak Hooked te eve pee Sti Sehana : Handl__to__=yne-n_--panral fall”|tho-__stark _qanaratiin -so__€Qour_m Ad Ine Coed,"Leo wi 21),Bex Cay array amiCon_split_t->Plamng a (yo Mu)combined) WOExpedto pent pred,30 Bete fowmCookWaloawood eS eS ee Sane o |om Math Cutideo>-@ Met wl hack--Deeide.'¢HiRGI,Booey|| | | [eA mneunbiuig.Stole oquy_teWace __SO__MEA__wenb_Ae_-s take_ae-C DogloaDMneludc.__thet _in_KEPClete26ee--StentDY)-;=a ttunk,--5 hla__2¢,p19 ____|Stevend hut swith _whiEnveilgyofpetchoundaaaa|i:{5 Loran fi-MBA-- -608 -vhre--Ona brosebens toe - |__cou MEA__tehe _sheveny-suitheh off L 2 7 :OQUER_.,a,pathy then te Putof SAMS. ty tility -fr.cbefChOD= ll Ort -cakle him Aha.-pely _wealle,i When __34_sno =Contractor.Resp."n he.g2h_femana.2§:Del abMLPsite 4/7 Pap,trail Ee Fay rsoben rmdSioud-H--_dE Fad -)Oe reit Aaeae4+(nas)Head] |omSit"(So.gon Cored)ySs_L CCU Lon XE.ROG Pg ---__- [Dems atape (PU time ABLIG__24b--Pean |bout.fm-RContnyghrt___lack__t.fbahian 5 :Sheda ballad F mand”aA rer”*S p,-Raves Soa) - lwa wen /Deb INLf +thesg | Tutehd @ 6vGA,beu (5b heseWRAEDct,onal ne tees oO, :No2d__drat _lnk __betwen -coitinl-Conttren peat bo WERE.Rei heSome -Cobia Caney Despatoh wile, Relale,Pvud_t Mest -> ;Ts_Heat stull mung At Rusl -<-(len?Yaby-VO)DO -nseel-db.DecumeWTehorge 6 -YHneicnhs.OUEA reedi___to_/pharta_atyChickOut sate -ae re)o [SCADA-necol Yo med/plan on fb |Maen 1 NT - CG coud putioby { te fi-_Canteuj,._22)pesibhy party||Multiple vervim.ob-Spee.part LALA Lf 4 7 ;tops 0b08 Toc =Rec ___Or-all _3 Ksve epee RecRepllacen----Cl0__.3 9 ve.contr_S pilin -_____fed Ave)neon Aundly2.contrrg 20MNTrtnta-.putt (Pay bach.ane) -- LA ccopt__Mamt__subCom Ret=SO ft cepph a teSvante "|4, Onn ore Woy egal:=Routhe _Commineskos--w)/-ME-jA-Anpakey cnuon eee AI -7 Com.o/er,Ok pasdticn Le (EOC Geraa,Eg »)-Ober SS ho"he ae -tann®! 3 -A*l howd ree besten Och 8 Sennrirg | 1)a I pone Leads owt Rent od =46vEA,CEA 2 whe pe---, Fol puble prea _(S --:We 2.. |idbe il itn =_oh Ruble Boy =1n 1.RST i fia Keepall Sen Rovte_=petprblie_cnukverar- | | | |MEA:sfonde SS_bu He A_nett-_MeEA_v x Tot phe ere hoe yati 7 S | +belisenod tell Toc |E2)(MEA-__perip.=Ae_cant_vo.w/orh rtde ii big nN.hit Bly . 0 ev 0/14 EA,ed Ae Con __otthnn {Sub Disp antl Mest. Rel +Prats.Meect | Alaska Intertie Operating Committee Meeting Minutes Thursday,July 17,2003 10:00 a.m.-AIDEA Board Room Roll Call: Henri Dale Golden Valley Electric Association (GVEA) Steve Gilbert Art Copoulos Alaska Industrial Development and Export Authority (AIDEA) John Cooley Chugach Electric Association (CEA) Robert Day Anchorage Municipal Light &Power (AML&P) Shauna Dean Alaska Industrial Development and Export Authority (AIDEA) The meeting was called to order at 10:05 a.m. I.Adoption of Prior Meeting Minutes Under Work Session -Snow Load Monitoring,change last sentence of minutes to read,"Art will compile a list of insurance coverage.”Also,all formal actions need to be numbered 1,2,and 3. MOTION:Henri Dale motioned to adopt the minutes as amended,seconded by Art Copoulos.The meeting minutes were unanimously approved. Hl.Approval/Modifications of Agenda None. lll.Committee Reports and Correspondence A.Dispatch Henri Dale stated the subcommittee did meet,and an action item that is still unresolved is ML&P modifying their outage report;however,they will be working on it.There was discussion on a previous outage and modifications were going to be made to allow for multiple outages.The committee also had elections. B.Reliability/Protection No meeting held.Henri Dale stated that by the end of the summer a rate of change relay will be installed on the Northern side (Healy B-17).That is all being designed and parts are being ordered and will be installed shortly.It will look at the rate of change to determine the frequency dropping. Machine Ratings Steve Gilbert noted that the MRC continues to meet quarterly -February,May, August,and November.The last meeting on May 15,2003,was held at the Cooper Lake Power Plant and included the regular meeting as well as a tour of the project.The group discussed developing a paper on system regulation requirements,adding H factor and total response to the rating sheets.All rating sheets are now on the website posted by ML&P.Each participant/member can access the website for password rights for modifications to their particular sheets and can view all other sheets.One of the big issues discussed is the types of machines that may ultimately be added to the system.Putting ideas on paper for recommendations.They have asked GE to put together a talk for the utility conference in November,which will include maintenance issues,operational issues,and dynamic characteristics. Steve Gilbert also added that on July 23,2003,Randy Johnson would be giving a talk at the IEEE meeting. SCADA/Metering/Communications Henri Dale stated that they have been meeting and have been talked with reviewing the communications circuits.They do not have a recommendation at this time,but have found things that they can cut back on and a few circuits that weren't being used related to communications. Maintenance The group did meet,and a rep from ABB was present to discuss the SVS/SVC issue.Burlingame was there to talk about spare parts.He feels that the original numbers that were given could probably be reduced with negotiation.Originally they were talking about $500,000,and with negotiation it could be negotiated down to $300,000 to get the parts reverse engineered,and still each site would have to be out for a long period of time -possibly 4 to 6 months at a time.The other option would be to start upgrading with newer SVS controllers.Burlingame was able to find someone who was manufacturing thyristors.Look at replacing the controllers,which range about $500,000 each.That is all still being discussed.They will have elections at their next meeting. Budget The group met and prepared a budget for FY04.$165,000 for the Teeland Douglas Relay work,which is being carried over to 2004 budget,and approximately $85,000 was spent in the 2003 budget year.Revisions were sent out. Upgrade Extension Targeting September as completion of the feasibility study from Del LaRue. There are four different alternatives as well as a ranking system. H.Intertie Status Report It is up and running and relay work has been ongoing.Power is going up to the bypass. I.Communications Received Art Copoulos sent out an insurance summary for comments,as well as a report from ABB.Also,a letter from MEA to Ron Miller was received regarding the extension. IV.Visitor's Comments Related to Items on Agenda Bernie Smith reported the status of the Energy Policy Task Force Commission that was put in effect by legislation.There will be 9 task force members.The timeline is that the railbelt portion has to be done by December 31,2003.The rest of the state,including Rural and Southeast,and the Four Dam Pool regions,will be completed on March 15".The Task Force is to besunsettedonApril15".The resolution has passed and has some guidelines,but once the Task Force gets assembled,they will elect a Chair and then put guidelines together. V.Recess Recess was deferred -went right into work session. Vi.Work Session A.Dispatch Subcommittee Only item was AML&P outage program to be completed.AML&P to do work on alarms coming back from SVS.Bob Day said work is proceeding and is in progress. B.Reliability/Protection Subcommittee John Cooley brought up the 115 tie between Chugach and ML&P for discussion -when that is closed there are circulating vars that need to be looked into.Bob Day said they closed that loop and has been operating like that for quite some time.He believes some of that work has been done and can easily be resurrected. C.Machine Ratings Subcommittee Next meeting is scheduled for August 21,2003. D.SCADA/Metering/Communications Subcommittee Need to finish up what they have been doing.They also have a task to look at metering. Vit. Vil. E.Maintenance Subcommittee Pursuing the SVS and what to do with it.Looking at snow load monitoring. F.Budget Subcommittee When they met,they were going to move the $165,000 and Art made up new numbers for review.The new budget is $1.659M with $1.96/kw. G.Upgrade/Extension Subcommittee They will present the committee with items in September. H.Voltage Coordination with Univ.-MLP 115 kV Tie Closed John Cooley is going to ask the Reliability Protection to have a look at this item. I.AEA/AIDEA Divestiture Desires Art Copoulos stated that the process is starting.Discussions ensued. Formal Operating Committee Actions/Recommendations A.Adopt Budget Motion No.304 to adopt a budget of $1,659,615 for the fiscal year.Moved by Bob -Day,2"by Henri Dale.The motion passed unanimously. B.Adopt MITCR Motion No.305 to adopt a MITCR of 23.2 MW for AEG&T,18.3 MW for ML&P,28.5MWforCEA,and 70 MW for GVEA.Moved by Henri Dale,2°by Bob Day.The motion passed unanimously.Based on this motion,the rates for this year are: capacity at $1.96/kw,and the energy rate is $5.63/mwh. Subcommittee Assignments A.Dispatch Subcommittee Meet and carry on with agenda. B.Reliability/Protection Subcommittee Meet and look at voltage profile with APA closed,and is Healy SVS must run? C.Machine Ratings Subcommittee Follow existing plan. D.SCADA/Metering/Communications Subcommittee Finish communication recommendation and investigation of Douglas metering problem. E.Maintenance Subcommittee Complete SVS recommendation and identify or find inventory. F.Budget Subcommittee AEA to report on what kind of capital loan program /agreement would need to be signed to get funds. Determine Agenda for Next Meeting being Hosted by CEA in October Next meeting will be held on October 16,2003,at 10:00 a.m.at Chugach Electric Association. Adjournment The meeting was adjourned at 12:45 p.m. _;7 (0:Ap - --fener Dove GUER _ GARD G Ibert _C_Se Ack CGpovles +ae Jahn Cool __ Resleeya -Gets a |Bea eefat_poule ee So,John.Caley,_GEAHenriDale.SeSteveGY[bert CEA_Partie Snithe ee To Masts --Art.GC.=last Semhence Art ull ori.OH_Mist Ot fnSUror Coro.Motion Henri _..H formal _actrons |,&4Z.a Connect ent Henri Dele ooElectrporeals,belL@ HBneg- elaby (ty "Rastecton ”NA ree,1d repert-Dob Dey -- thy?Irae Cb rcera wu the,- -Shee Gilber dyseussede -feasted .doch|n foepevee_te por}Ll re uelCLESjanelle-ogean cbecveel ae F mcefce-to booddheg...atteCaceres.”ia Gost).defo MROapgithederyinnehi.back fom.Stee Ges [beck ted Woe het corehatoeford-fetelee on aeceptith paw fo necommadche. () oe _° -_"4 dean Bee " Stee =foby "esaes,fom 2hegue fell,oon@fan.2 Souresugh,we 408%Pe,sel.Sab.-va pec ABB isc._SpeePu.a Sep Bar ligera #500 00D to "00 oop Ahayertei Beat Sub.-ped aeoudKhe te FVay aa|(65,088.Teele |Dovilie-Pelfey.eeboSpeedivBOOSEReeretesginSychfifooitody a eee me-gh aplee Ter tpaTiromABB(AAS)om Marten oles.aootrMEAtehomeMillepoPilotrfMerryseoe - ___MeA.nn+worcts 4 diss.|--BeneSate -;Sous.oe Enaren PalieyTooke PreethyArrciw.ae Rey et are by.'hex.3/4ph pom ;ciMorell [5°|Tosh free Svar.whet b 2) Dessle[ob bene possede vw[some gobiMoomeutaCanhere.proce.fran.OZ,pend.Whi Ses -aK stow ==@ U 20 Qin,ty|ne£25 pm _aone,masBek(65463.2 a as,wef)OSiadSubCoyElie.1 tae arb 22866 ryt aooh pt Nein.--_ cane 3SUS seconpend by --ot manct.(syves -Fh _Mitenhard 7 =Bail o LEA 4 pues w Coal CEA paxct mcty.pleOctoberIG,260%; C10:ome 7 ne te ogre.(seereed lon 7 Aldine 2 IAS pm ALASKA INTERTIE OPERATING COMMITTEE MEETING AGENDA THURSDAY,JULY 17,2003 BEGIN AT 10:00 A.M. I.Adoption of prior meeting minutes II].Approval/Modification of agenda III.Committee reports and correspondence Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee Budget Subcommittee Upgrade/Extension Subcommittee Intertie Status Report Communications Received IV.Visitor's Comments Related to Items on Agenda V.Recess,if needed VI.Work Session Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee Budget Subcommittee Upgrade/Extension of Intertie to Teeland Voltage coordination with Univ-MLP 115 kV tie closed AEA/AIDEA divestiture desiresHOHOw>HOMMEOW>VII.Formal Operating Committee Actions/Recommendations A.Adopt Budget B.Adopt MITCR VIII.Subcommittee Assignments Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee F.Budget Subcommittee IX.Determine Agenda for Next Meeting to be hosted by Chugach in October X.AdjournmentMOOW>Meeting Location:AIDEA Conference Room Toc Murer 7sfos (2-| SUC Propo sal); Spark.Ports VS Rett _ Total Retmet SD0-1 millim |=soe 3B O-8 garsPorte A Wer naive Poutie|Counds ugh J.Co rR Cosa SupolyJ|Ao a Need mare dats Mod)ostfh Re solu "ohne -| Healy stays om _causo Shilo sud didiwrandALSEofCouthdamaging canteen patente On walkeae>Susy ah fA loca haa oF |wath,ob LI DtTA,poole Susi) 1 the als,eu.Conn sted low,tron |De cost f Pevah uy i buy, Chunk AO aU Gt ow»sparoa Parts) Ag one)T=Dato matics om T +t people ne we \1 a" -po own)ANCE-fot z we da chek,Kotz=Re)-DOG aMoretwin"lin $+pilaf cri e +r + soe 1 . . : :to, an - a . ' :."oe or . . an'in .' .' : Y[Pig ceplassna OeMoya=eS Coen puels hate OH 7(Weel to Shahg_cost-donni Beale alibi A Lost i ieetFaneheramontalmaWOLOALONYNor Carn Soma)dc alld &Vier Rest Mm wh lator, Chweln|Daye thnks yas BUTCosts|THINGS Chay Wher =OMNES myo.Stohioy4Cuil(NEA ascop5h RISE an eat Pree on afd 3 _unilerrvofelpee"ot spate past,PuaAst SSaver. _a eeScope2idoturnlee27--o ID)costwieQ0G%above Cue r lOOKS y Tram in ave eon contik Hyycistod)tole | ZK B nth dipondost om small postsinhaweWiredwetlooanal Welty Wath subC =Rex Oud Amt INGAltA+90%Moho pants | (S00 ic 100 +iOO =AB Utuh2560=10(200 t cod " Fal: ' " a [{pon SF SEEN (thar||bot ctnaed >dae __¢4 Lan)/ Yo 7 =:= |a=2 My atl lA *pyetod,fas F combyle \i _ofJ_\VrQ (ceAbererey,+, ee - -- S Pac.p-adha Cost %-)Mp-500 -conbrol card pAb iA_\S0=140 othe,s bullRoar Zhalf Wiwys Mort -latws thedienpeo5eRe -_Re planing Menky ,wat 3 Moa i> MEAs hee Cand)-NAL Cyt AN,"7 peta =3 7 OD JS MAAS THeone "Pine =Lewold.pes aNieAadTryerrd/ Rec 9 OF%Mis -@ee-to TT ee AOAA Cond ng /neodd fuprrboseafeeLuidleeyVeurer SMS -df butt Sin opi etion) -MEA SUbshahiar Lpgrede.__oof, Dt WEP Mad rcar | =sah uana pyrodea)OR AG -tus Ae Y nd errl)ge (O A.={bo ES SiLWAS Wnpaaetssike =?Onn n -ye rat | |(AIS 1AJb,catty(Dhatt De (fom Make -weRk e OVER TRIWKS type AR (4 Q -CO00 ptrnss /mums Any work Marah qeosih :QUT Won Wa Rag ed). ;-LSAvA Wa)2 Leepfeay K lars) APoadperernROA LAAGWUIE anmattrsd y uptn 'WwiaeWeangs-Fut tot Corea nnn ,Rt)gen a Ate> (seek Cox to wpbell c wnerno om _Qtredy Sta tn | a,__.Ls (as lasts Vy cost Pup.Terk:\|No --_---as'.€-s | i i _A \| .NYoow = oy oN ™\eu uA kno to maha rs =com |7 - .=a (-Low,"oye.shiet NAN O4 (Am:Pro | Oo yp AS For,Teed.i Dry On SLMS aan|nt 4S Pay ok aookINNSbudeOo?__y --tt -- 7 -_Vi =100.TEN Tactogee -eeea4\Nala *ORO | get a Nees Power Systemsstemsvine, Alaska's Northern Intertie GE/SVC-Control Retrofit J K Spare Parts Evaluation Progress Report -WO plus cond 4 Z Hw 500K Reverse remnginrad\RQawConds)NG" Dou neLLeeemania laubor PHONE (907)522-1953 *3305 ARCTC BLVD.,SUITE 201,ANCHORAGE,ALASKA 99503 *FAX (907)522-1182 *WWW.EPSINC.COM PHONE (907)789-2474 *2213 JORDAN AVE,JUNEAU,ALASKA 99803 *FAX (907)789-4939 Table of Contents: Contents Page # Evaluation..............see ee eae seen eeeeaenesaeeaeeeseeeeneaeeeeneeesseeaenesenes 3 Review of ABB proposal (alternative description)..................cceceeens 3 Sources Of Spare parts............ccccccececcceececsceeeeeeeeeneeeeeseeeeeseeeees 3 ELECTRIC POWER SYSTEMS,INC.3305 ARCTIC BLVD STE 201,ANCHORAGE,ALASKA TEL (907)522-1953 FAX (907)522-1182 2 Evaluation Electric Power Systems was contracted to evaluate the effect of the required spare parts list given the two alternative solutions provided by ABB.The two alternatives consist of the following: Alternative A: This alternative includes upgrade of the control system to MACH 2 with a new interface to the existing and remaining thyristor valve.The delivery for one SVC will consist of: One (1)MACH 2 control system,including OWS/SEROne(1)set of interface circuit boards included in the MACH 2 panels for interface to existing thyristor valve. One (1)set of fiber optics for connection from the new control to the thyristor valve. Alternative B This alternative includes a control upgrade to MACH 2 and also a replacement of the thyristor valves and cooling system to today's technology.The MACH 2 will have a VCU, including OWS/SER ) 'One (1)3 phase thyristor valve for TCR One (1)Complete cooling system for the thyristor valve,including pump station,air blast coolers and piping between these units and the thyristor valve. Essentially,alternative A will remove the issue of spare parts availability from GE for the control portion of the system.As stated in the spare parts evaluation dated 3-7-2003,the controls and the thyristors were the main areas of concern regarding available replacements.Spare parts for ABB's alternative A and B are readily available and are listed and priced below:. ELECTRIC POWER SYSTEMS,INC.3305 ARCTIC BLVD STE 201,ANCHORAGE,ALASKA TEL (907)522-1953 FAX (907)522-1182 3 Alternative A Spare Parts (for new control system). Item oDONOOahWN====ny=©Qty 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Item Mach 2 PS801 PS820 PS930A PS931A PS841 PS846 PS850A PS851 PS853 PS860 PS$873B PS853X PS891A PS900A PS906 PS916 EK 2660-7R Spare Kit Description Control computer (without PS801 &PS820) High performance DPS board HDLC Communication supervision board Connection unit for PS801 Connection unit for PS820A AC voltage measurement board AC current measurement board Switch control board Digital input board Digital output board High performance I/O DSP board Bus extension terminal board Digital output board Power Supply Unit Valve control central unit valve control 16 ch.Optical I/O Back plane DC/DC converter Kit with fans,filters and batteries Alternative B (Thyristor assembly) 20 21 22 23 24 25 26 27 28 2aNH==2»=&DHKNPbOThyristor Gate Conductor Thyristor Control Unit Heat sink with resistor Capacitor Set of PEX-pipes Set of o-rings Light guides VCU to valve thyristor valve tool kit Alternative B (spare parts for cooling system) 29 1 Set of spare parts for cooling system 3 es onary thay oncianytapclios ,He df 4¥pv?>)»7SodNAUnitPricea/\ $12,090.00 qwr» $5,084.00 pass$3,810.00 vV$310.00 a $450.00 $1,395.00 $930.00 Att 8 $635.00 x $435.00 ARB $435.00 $1,720.00 Cost 5 $325.00 LOTS $435.00 more $990.00 Because $1,240.00 New $2,945.00 ARB oystem$310.00 $1,795.00 $355.00 4 Bab y anew” $3,255.00 $30.00 Wwe $465.00 Ay *g$885.00 Bs $370.00 os '\A $820.00 coed$23.00 vat$200.00 $7,530.00 Ya \5 Geo $17,050.00 sur\ Q 4 As far as the existing SVC system goes,spare parts for the control portion are primarily the control cards.EPS believes that sufficient supplies are on hand for most of the other parts within the system.The control cards,however,represent a minimum expenditure of $280K, regardless if one or more boards fail of which there are no current replacements. The existing thyristor assemblies can be rebuilt by what used to be Silicon Power Products. The thyristor manufacturing portion o*this company was bought out,and is now called Adelser.They are still located in the same building as Silicon Power Products,which used to be a division of GE.The address is as follows: Adelser Inc. 175 Great Valley Pkwy, Malvern PA 19355 Contact: Claude Vol or Ken Rickets at 610-524-1200 ext 161. ELECTRIC POWER SYSTEMS,INC.3305 ARCTIC BLVD STE 201,ANCHORAGE,ALASKA TEL (907)522-1953 FAX (907)522-1182 5 Intertie Maintenance Subcommi ee NYasJQ 3 @10:00 hrs at Meeting notice and agenda TOThe IOC Maintenance Subcommittee meeting is scheduled for Ju the AIDEA Headquarters in Anchorage. Tentative Agenda: 1.ABB SVC Upgrade proposal EPS update on SVC spare parts study - 2 3.Maintenance updates -spare tower ?|4 Open Agenda: 5 Date and time for next meeting . Contact me if you would like to address any other items IOC Maintenance Subcommittee Meeting Minutes April 16,2003 Present:Monte Ervin -GVEA Doug Hall -AML&P Art Copoulos -AIDEA Charlie Kimmell -CEA Tom Kelly -MEA Del Larue Dryden and Larue Paul Williams Dryden and Larue Steve Kozlowski Elec.Power Systems Called to Order:10:00 a.m. Read and approved minutes of meeting Jan 7,2003 Discussion on condition of Str.#297 &274 Primarily because of cost concerns the IOC would like to hold off on permanent repairs at this time.Since the towers have been in the present condition since the late 80s it is apparently felt that continued monitoring could be used until further movement is discovered.At that time repairs could then be undertaken.Del Larue felt there was no way of knowing how fast the towers may shift,if at all,but since the underlying bolts of the foundation anchors are already stressed at some point they could be pushed to failure..He mentioned that part of the plan for resetting the foundations is to provide a drainage channel of some type to allow the standing water around the foundations to drain away to prevent possible ice jacking.This could be the eventual cause of foundation failure if not addressed.Doug Hall felt that at a minimum the planned drainage should be undertaken even if permanent repairs aren't.The committee would prefer to have the repairs done,however Tom Kelley said his crews could do the drainage work during their next patrol.He also felt that monitoring could be accomplished by his crews using the same methodology used previously by Dryden and Larue.The committee agreed and Tom will arrange to have the monitoring set up. Charlie Kimmel discussed the possible costs of an actual failure and wondered if anyone ad done any studies regarding the costs of having the line out of service for any significant period while replacements were being affected.Monte mentioned that brought an idea discussed previously to purchase Lindsey temporary replacement structures.These are very versatile and can be used temporarily to replace many different types of structure while permanent replacement structures are being designed and installed.Two replacement towers would be needed at a minimum and costs would be roughly $120,000 to 140,000 each.It was thought that $300,000 to 400,000 would possibly be a small price to pay should the line be out of service for a long period due to a tower failure. Del will look into the actual costs should we need to replace the towers from a failure and as the repair doesn't necessarily need to be done while PAR is constructing the Northern Intertie,then they will give an updated cost for replacing the foundation. SVC spare parts study and Teeland Bypass The committee discussed the report of EPS regarding the costs and availability of spare parts on the SVCs and controllers.There was originally thought to be an amount available after construction of the 230 kv line bypass to allow upgrade of at least one of the SVC controllers.This isn't going to be realistic as it appears the ROW acquisition bill for the bypass is going to be a significant amount.This in addition to the cost of line construction will use all available funds.The control retrofit for all the SVC locations was $1.2 million in 1996.Charlie Kimmel thought that if we invested $500,000 in the spare parts as mentioned in the study then it would only allow a short time before a reorder would be required again because of the age of the units.Steve stated he thought that only about $280,000 would be necessary to reverse engineer the critical cards and have a maintenance supply for the near future.There are group 4 thyristor cells available that can be used in place of some of the other type group cells in an emergency.The committee felt that the IOC should look at upgrading either Goldhill or Teeland SVC controls. Art said he would get with ABB to revisit their proposal and would like to perhaps conference call with those of the committee that would have time to listen in on the proposal.The committee felt that an upgrade would eliminate the necessity of making a large investment in spare parts only to extent the life of the controls a few more years. Steve Kozlowski of EPS will get data on only necessary spare parts to allow limited backup until there is a formal control upgrade.This may require additional funding.The committee would like the information prior to the next IOC meeting. SNLMS The committee had a short discussion on the SNLMS including the history and reason this solution was proposed vs.doing inset poles and other capital projects to eliminate liability for the poor design and differential loading as a result.The main problem with the SNLMS is not that it doesn't work but,since it is only installed every 10 structures it can't see all aspects of line during significant weather events.As a consequence patrols are still necessary to identify actual conditions.The data gathered so far hasn't been used to establish a permanent solution. Del Larue would like to have some consensus from the utilities as to their desire for the next step.Since this solution to various problems was selected on a financial basis by the various utility managers,the committee felt he should set up a presentation to them regarding the present status of the SNLMS,it's problems and whether they should consider permanent solutions to the differential loading problem. Open Agenda Tom Kelly informed the committee that MEA has obtained a nest removal permit and will be proceeding with removal of nests on the southern section of the line.He also plans to have Paul from Dryden and Larue perform some training for his crews on the methodology of monitoring Structures 297 &294.The plan is to have all this accomplished while performing the Ground and Climbing Inspection. IV Date and Time next meeting If we scheduled a meeting |must not have written it down.Email me with the date and time if we did schedule.If not one can be scheduled this fall and I'll bring Mike Wright up to date.He can bring the new GVEA Ops Manager on board when he arrives . * Art Copoulos From:Monte Ervin [MRErvin@gvea.COM] Sent:Thursday,May 22,2003 10:14 AM To:Art Copoulos;Charlie Kimmel;Doug Hall;Tom Kelly oF 1OC Main.Sub. Minutes.doc Attached find minutes of the April 16th meeting.Any corrections would be welcome as I'm not sure |have it all correct.Also |had no notes on next meeting dy and time.As with the minutes any corrections are welcome. Thanks Monte IOC Maintenance Subcommittee Meeting Notes May 6,2003 Start 8:10 am. End:8:40 a.m. Art Copoulos,AIDEA David Burlingame,EPS Steve Koslosky,EPS Gene Anderson,ABB Larry Hembre,AML&P Doug Hall,AML&P Discussion ensued regarding options that EPS provided in terms of keeping the SVCs sustained and the option in regards to replacing the controls.There was no formal agenda for this meeting -discussion purposes only. The option that was looked at was what it would take to get the spare parts up and on board that are needed to keep the existing SVCs in their existing operation. The group discussed other similar situations around the country. ABB noted they did a survey as well as visited all of the GE owners of SVCs at that time.Found that the weak links was the control protections.The thyristor valves were still being supported at that time by another source.The valves are air-cooled and somewhat high loss,but still operational.The first retrofit done was fora GE SVC very similar to these,only in an industrial application.Replaced the control system and the interface between the controls and the valve - the trigger system -the fiber link.At that point,found that the interface was completely obsolete and there was no way to get parts or to upgrade,so it was replaced with an ABB interface directly to the valve. It was re-iterated that on that example project,they replaced the control and interface between the control and thyristor valves.Essentially,anything downstream from the thyristor valves on is what the customer would need to address as far as spare parts in the future. Many customers are looking to replace thyristor valves with water cooled valves to reduce the losses,and to extend the life. Costs have gone up about a 10%increase for last year. In ABB's budgetary proposal,it was asked if the controls in the control cabinet and the link between them which at this time is the fiber optic cables controlling the thyristors from the end of the optic link to the thyristor valves toward the controls from that point is what is essentially going to be replaced. 'The interface between the thyristor valve and the controls was not in the budgetary estimate. That was something they experienced in Utah,that the interface,if it failed,the value of the upgrade was 0,and at that time they developed an interface. As far as replacements on the thyristor modules,ABB has looked at developing actual drawers that could be built to slide right into the existing valve base.The interface is from the control to the valve,and that can be offered,and it interfaces to the connector on the thyristor modules. They supplied connectors on the fibers that would interface with the ABB equipment on one end and the GE equipment on the other. The group wants two additional proposals.One for replacing the control interface,and one for replacing the control interface and thyristors,so they can be compared by cost, and maintenance of the existing system.This would be in addition to the control retrofit proposal previously submitted.What the utilities want is what is the best overall technical and economical solution. The group discussed end of life for the equipment. They also discussed graphical design software called Mach 2 in which circuits are designed, and the software writes the program.A much higher advance than what was offered in 1996. The question about problems with the printed circuit boards -would replacing the interface or the interface and thyristors solve that?The answer was no,but the replacing of the controls will solve that -the Mach 2 will take care of most of that. The topic was discussed that what is the intention of the SVCs -if it's to survive the next 5 to 10 years,then we need to evaluate what is the best capital approach.An upgrade with a control replacement valve upgrade interface -basically extends life to 20 years.The main circuit equipment is almost consumables in the capacitors where you could replace those in-kind over the years and you can replace them individually as they failed.The life of the reactors is pretty long,but they are available today as a standard item.If you are going to make a capital investment into the SVCs,obviously the sooner you make it,the more benefit you get out of that investment. The revised proposal and other two options off of that proposal will be ready around May 30", 2003. H:\ALL\sdean\Art\lOC Maintenance Subcommittee Meeting notes.doc Intertie Operating Committee Meeting Alaska Intertie May 27,2003 -2:00 p.m. Roll Call: John Cooley,CEA Dora Gropp,CEA Lee Thibert,CEA Brian Hickey,CEA Bob Drake,MEA Tuckerman Babcock,MEA Jim Posey,AML&P Bob Day,AML&P Ken Langford,AML&P Bob Price,AML&P Henry Dale,GVEA Greg Wyman,GVEA Del LaRue,Dryden &LaRue Kelly Hill,Dryden &LaRue Ron Miller,AIDEA/AEA Brian Bjorkquist,Dept.of Law Art Copoulos,AIDEA/AEA Karl Reiche,AIDEA/AEA The purpose of this meeting was to discuss the Alaska Intertie Feasibility Study,right-of-wayalternatives,and details of right-of-way requirements.An agenda was handed out and a sign insheetwaspassedaround(attached). AIDEA issued an RFP in December 2002,to hire an engineering consultant.The RFP was evaluated in February 2003,and AEA issued a notice to proceed to Dryden &LaRue ("D&L”)in early April 2003.D&L is tasked with looking at various possible routes for an upgraded 230 kV intertie to replace the MEA section (Teeland to Douglas).D&L will also consider right-of-way widths,possible conflicts,permitting,disruption issues,cost and scheduling,and to rank the alternatives. D&L handed out a packet,which included preliminary sketches and drawings of structures,and discussed each drawing (attached).D&L limited their initial review to the area shown on the map and that was identified as the study area.D&L looked at various tower types and prepared sketches including tangents,angles,and dead-ends for single pole structures and for X and H towers.The drawings showed that if the structures were adjacent to an existing power line,30 feet of the existing right-of-way could be used for clearance requirements.An additional 70 foot right-of-way would have to be acquired. The other possibility would be a new adjacent power line with shorter spans on single poles. This could be designed with a 60 foot right-of-way,and if adjacent to an existing facility (railroad or a highway),we could utilize 30 feet of existing right-of-way,and would need an additional 30 foot width. In summary,depending on the design,an additional 30 to 70 feet right-of-way width is required for a new line that parallels an existing right-of-way. Mr.LaRue discussed the four routes analyzed: 1.Following the original MEA right-of-way. 2.Following the Railroad right-of-way,North to Nancy Lake and on to Douglas substation. 3 Following the highway,which begins parallel to the MEA line,north to Johnson Road, and follows the highway to the same point near Nancy Lake and up to the Douglas substation. 4.A cross-country route,out of Teeland,following the MEA line,and then going cross- country to the Douglas substation. Dora Gropp stated that she had received a handout in the mail titled Mat-Su Highway and Railroad Corridor Study Route Recommendation regarding an open house,and asked Mr. LaRue if he had also received this document.D&L had not received it and was provided a copy. Right-of-way costs were calculated by determining the number of parcels involved,the type of use,the lineal footage,and right-of-way width (based on long spans or short spans).The Mat- Su Borough assessed value was determined for half of the parcels.Assessed values were multiplied by 1.25 to estimate a market value.Easement costs were calculated at 50%of the market value.All of the routes were evaluated with this method with the exception of the cross- country (summary attached). D&L discussed estimated parcel counts and right-of-way acquisition costs for the various routes. D&L's next task is to have its Environmental Engineer take each one of the segments and review them in terms of permitting.There are many airports in the Mat-Su Valley,which need to be located and the power line impact evaluated.Other intangibles,such as permitting,will be considered in the ranking of alternatives.The criteria will be applied to each route and a 'best' alternative will be determined. Several existing MEA right-of-way easements are being evaluated.The State was given samples of four sample MEA easements that are part of the existing MEA line and was asked to assess the viability of modifying the easements for an upgraded power line.Brian Bjorkquist noted that copies of the sample easements were made available to all the utilities for their comments as well. Mr.Reiche mentioned that a copy of MEA's May 9,2003,letter had been distributed to the utilities,along with the agenda,and he briefly reviewed the letter.MEA's letter stated that MEA will not be extending the agreement past June 2004,and that that this section of line is a major element in MEA's current and future operating plans.The letter also indicates that MEA wants to preserve its flexibility for operating the line in either a single or double circuit configuration. MEA states that it will consider some overlap between the MEA easement and a new easement. Mr.Reiche asked Mr.Drake to clarify MEA's intent regarding preserving the flexibility of having a single vs.double circuit line. Mr.Drake noted that MEA's intent is that if MEA decides to double circuit the line,they will want to preserve their easement to allow them to do that.So,the width MEA currently has is capable of allowing a double circuit and MEA wants to maintain that capability,without being minimized by any overlap from some other easement.MEA would have to agree ahead of time on any proposed overlap,to preserve MEA's ability to build a double circuit.Mr.LaRue asked Mr. Drake if MEA's intent is that MEA may need to do double circuit themselves.Mr.Drake responded yes,and the intent of the sentence was not that the State would have one circuit and MEA to have one circuit. Mr.LaRue also asked about the MEA letter's mention of that as long as there wasn't a conflict with one tower falling over and hitting the other one -does this mean any part of a tower?Mr. Drake stated that the idea of that sentence was that they don't want to have a tower,either MEA's or someone else's,fall over and cause damage to the other person's circuit.MEA doesn't want to have damage to some other system with one circuit or one tower falling over. Mr.LaRue asked that if he made a drawing of two X towers,either would have to be able to fall over and not touch the other one?Mr.Drake stated that was correct. Mr.Drake said he would take these suggestions back to be discussed with his office.Mr. LaRue stated that he needed to know the rules so D&L can analyze the advantages of going parallel to MEA's line. Mr.LaRue stated that they had recently given the State a completion date of September on the feasibility study,but noted that it was moving along quicker than that.He also stated that it would be helpful to have feedback from the |OC committee.The next step is to include the environmental and permit issues and then it would be down to ranking the routes -determining which one is best. Tuckerman Babcock asked if Mr.LaRue said they are going to propose to build this section of line differently than the line north of Douglas because of snow loading problems north of Douglas?Mr.LaRue responded that the line north of Douglas was part of the Susitna Dam project and was built for 345kV.The capacity was such that it was a completely different scenario at the time.It was intended to transfer gigawatts out of Susitna,and that's not what we're doing now.There are lessons to be learned on that line and we are aware of those.We would not only design it differently,we would build it differently,taking into consideration the unbalanced snow load condition. Did D&L look at an overlap of MEA's right-of-way plus additional required right-of-way?Greg Wyman said he thought the railroad is 200 feet wide in a lot of places.Mr.LaRue said yes,that he assumes he needs an additional 70 feet adjacent to it for a long span,and 30 feet for short span.The analysis was done independent for each right-of-way,the highway is one right-of-way and the railroadis a different one. Art Copoulos asked what would be used in the ranking criteria.Mr.LaRue answered they would take routes or segments,look at the tangibles and intangibles and make a judgement call.D&L is going to come up with a high-medium-low rating system on certain controversial aspects. Ron Miller stated he wanted to schedule a meeting with the utility General Managers,to go over the results of this meeting and to discuss an intertie continuity past July 2004.Draft minutes for this meeting will be prepared and sent out. John Cooley asked if AIDEA/AEA was working at trying to negotiate an extension or replacement contract to keep intertie in operation until we get something else built.Mr.Miller stated that was one of the things they would discuss,as well as options for continued use of the transmission line until the parallel line is built. Bob Drake asked if there was intent to use any of the $20.3 million to resolve snow load problems on the line north of Douglas? Karl Reiche stated that this 19-mile section was the first priority,and that the IOC report indicated three additional upgrades that should be considered.The quicker and less expensive the solution to the 19 mile section,the more money there may be left over for contro!upgrades and snow load upgrades. Karl Reiche concluded the meeting stating that as other deliverables appear from D&L,there will be additional |OC meetings scheduled so that the committee is kept up to date. End of minutes. 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BXACIERY MERCsIMle Tiansmittal Paver Dage.doa 813 West Northern Lights Boulevard *Anchorage,Alaska 99503 907 /269-3000 *FAX 907 /269-3044 *Toll Free (ALASKA ONLY)888 /300-8534 *www.aidea.org Los -5204DobDoxBobDvol@Go)Tbe 322HenryDale(407){5(-0556263-544! Don Stead (207)235-3323 TJohu Cooley TES -45 Yo7 .. > Shauna Dean L) From:Shauna Dean Sent:Friday,May 23,2003 12:55 PM To:-'DayRH@ci.anchorage.ak.us';'HallDW@ci.anchorage.ak.us';'dstead@homerelectric.com'; 'john_cooley@chugachelectric.com';'rcdrake@matanuska.com';'hfd@gvea.com' Ce:Karl Reiche;Ron Miller;Art Copoulos;Brian Bjorkquist Subject:1OC Meeting on Tuesday,May 27,2003 at 2:00 p.m. Importance:High AK Intertie agenda 27May03.doc...;;Attached is a revised agenda to clearly show that the proposed General Manager meeting will be a separate meeting to be scheduled at a future date. Please let us know if you can not attend in person.Teleconference instructions are noted below. Tuesday,May 27,2003 at 2:00 p.m. Dial:1-800-315-6338 Code:527# See attached agenda. VIA FACSIMILE and EMAIL May 23,2003 1OC Committee: John Cooley,Chugach Electric Association Bob Day/Doug Hall,Anchorage Municipal Light &Power Bob Drake,Matanuska Electric Association Henry Dale,Golden Valley Electric Association Don Stead,Homer Electric Association Re:-Notice of Alaska Intertie Meeting The meeting will be held at 2:00 p.m.on May 27,2003,in the Board Room of the Alaska Industrial Development and Export Authority (813 West Northern Lights Blvd).Dryden &LaRue will be present to discuss technical issues. Topics of discussion: A,Alaska Intertie Feasibility Study:Review of Scope and Current Progress'MEA Right-of-Way and MEA's proposed solution (MEA's letter of 5/9/03 attached) 'Shared/Parallel Right-of-Way Technical Options MEA plans for expanding &upgrading the existing lineTePossiblestructure&conductor arrangementsSnowloadconsiderations »Additional ROW needs .Feasibility Study Completion SchedulemeGeneralManagers'participation meeting,to be scheduled at a later dateLYReviewofoptionsdiscussedMay27bylOC»\ntertie continuity past July 2004.Next IOC meeting on feasibility study,to be scheduled as needed 7 Other Topics for Discussion?AEA Meeting Participants:aNRon Miller,Executive Director Brian Bjorkquist,Department of Law Art Copoulos,Project Manager Karl Reiche,Projects Development Manager h:all\kreiche\project interties\ak intertie agenda 27may03.doc P.| Transmission Result Report (MemoryTX)(May.23.2003 2:07PM)*** )?AIDEA/AEA3°«=uex *s Date/Time:Way-23.2003 1:54PM File ,Page No.Mode Destination Pg (s)Result Not Sent. 3232 Memory TX .92635204 | P.3 OK 919077619322 OK 919074510556 OK 92635441 OK 919072353323 OK -97624540 OK Reason for error E.1)Hang up or line fail E.2)Busy E.3)No answer E.4)No facsimile connection :ude tad sna!Doralpmant wl Exon Aashody . , Alm /eNiiex etna eeteno'Alvcka Enngy Anthorty Facsimile Transmittal To:Dob Dar f Das Half |Dow Seal Tob Cosles {Dob Da ngCOMPANY:. ' Fax #:(k . FROM:Kal Q acheDATE:5-13-03 pcs. Number of pages inctuding cover page:2 Transmittal Contents: cjomments:.Meeting Notice +As tnda Notice;This facsimile may contain confidential Information that is being transmitiod to and Is Intended only for the use of the recipient named above.9.. i or copying of this by anyone other than the ramedrecipientorhisorheremployeesoragentsIsstrictlyprohibited.M you have received thisfacsiuileinerror,please immediately destroy It and notify us by telephone at (907)269-3000. 813 West Northern Lights Boulevard »Anchorage,'Alaska 995039071269-3000 *FAX 907 /269-3044 ©Toll Free (ALASKA ONLY)866/300-0534 *www.aidea.orp \3 \ VIA FACSIMILE and EMAIL May 23,2003 1OC Committee: Re: John Cooley,Chugach Electric Association Bob Day/Doug Hall,Anchorage Municipal Light &Power Bob Drake,Matanuska Electric Association Henry Dale,Golden Valley Electric Association Don Stead,Homer Electric Association Notice of Alaska Intertie Meeting The meeting will be held at 2:00 p.m.on May 27,2003,in the Board Room of the Alaska Industrial Development and Export Authority (813 West Northern Lights Blvd).Dryden &LaRue will be present to discuss technical issues. Topics of discussion: 1 2. 3 jas.Alaska Intertie Feasibility Study:Review of Scope and Current Progress MEA Right-of-Way and MEA's proposed solution (MEA's letter of 5/9/03 attached) .Shared/Parallel Right-of-Way Technical Options e MEA plans for expanding &upgrading the existing line e Possible structure &conductor arrangements e Snow load considerations e Additional ROW needs Feasibility Study Completion Schedule General Managers'participation meeting,to be scheduled at a later date e Review of options discussed May 27 by lOC e Intertie continuity past July 2004 Next IOC meeting on feasibility study,to be scheduled as needed Other Topics for Discussion? AEA Meeting Participants: Ron Miller,Executive Director Brian Bjorkquist,Department of Law Art Copoulos,Project Manager Karl Reiche,Projects Development Manager h:lall\kreiche\project interties\ak intertie agenda 27may03.doc DRAFT ALASKA INTERTIE OPERATING COMMITTEE MEETING MINUTES THURSDAY,APRIL 17,2003 (GOLDEN VALLEY ELECTRIC ASSN -BOARD ROOM) Present: John Cooley Chugach Electric Association (CEA) Art Copoulos Alaska Industrial Development and Export Authority (AIDEA) Henri Dale Golden Valley Electric Association (GVEA) Bob Day Anchorage Municipal Light &Power (AMLP) Doug Hall Anchorage Municipal Light &Power (AMLP) Brian Hickey Chugach Electric Association (CEA) Tom Kelly (via phone)Matanuska Electric Association (MEA)&(proxy for AEGT) Kate Lamal Golden Valley Electric Association (GVEA) The meeting was Called to order at 9:05 A.M. l ADOPTION OF PRIOR MEETING MINUTES January 16,2003 meeting minutes were approved with one correction.The word '"fund”should be replaced with the words "arrange financing for”in Section VI,Item H.Budget Subcommittee. ll APPROVAL/MODIFICATION OF AGENDA One item was added to the agenda under Section VII,Work Session: "Spin Issue to General Managers for Action”was added as Item B. Ul COMMITTEE CORRESPONDENCE AND REPORTS A.Dispatch Subcommittee The Dispatch Subcommittee met on March 12,2003. >Some of the topics discussed included snow load monitoring,SVS alarms,and MEA bad URD.Also discussed was multi-part outages/cascading events (will be reported individually but flagged by AMLPas related. Page 1 of 6 Reliability/Protection Subcommittee The Reliability/Protection Subcommittee has not met. Machine/Rating Subcommittee Machine/Rating Subcommittee met in Fairbanks on February 20 at Golden Valley Electric Association.The group also toured the BESS facility. >The main topic of discussion was aero derivatives and how they're going to affect the system at large. >AMLP and GE are doing a study on BESS but the study is not yet complete. SCADA/Metering/Communication Subcommittee This subcommittee met on December 4,2002.The main purpose of the meeting was organizational since the group had not met in a long time.Allen Gray is the Chairman. >The DG100 meter reads are off from SCADA.Will continue to monitor the differences. >Communication circuits are not being used,and recommendations were made. >ICCP packages are not ready to compare. Maintenance Subcommittee The Maintenance Subcommittee met yesterday. >Del LaRue was present to discuss snow load monitoring,and informed the group about the liability issue of the SLM system.He would like to do a presentation for the IOC and the General Managers to make sure all new players understand the system. Budget Subcommittee Art sent a memo dated March 1,2003 requesting information needed for thenextFYbudget.He is asking that the information be sent to him by June qt The budget status report just came out.Expenses are down $700,000,and revenue is down $200,000.This results in a $500,000 surplus. Upagrade/Extension on Intertie Study was awarded to Dryden &LaRue.MEA still plans to open their line segment in 2004.Art will check with Del to see when he can complete the Page 2 of 6 IV Vi study.John reported CEA had a bi-annual meeting with MEA regarding the line.By mid-June,MEA will report to the State what they plan to do with the line. Intertie Status Report No problems to report. Communications Received MTA sent AIDEAa letter requesting permission to insert a pole in the ROW near Cantwell.Art will respond with a letter that this was OK'd with the utilities as long as the pole is to code,etc. VISITOR'S COMMENTS RELATED TO ITEMS ON AGENDA No visitors were present. RECESS Recess was deferred -went right into work session. WORK SESSION The work session began;discussions followed the agenda below. A.Snow Load Monitoring Bei Mgrs.Art is to check with Del LaRue regarding a presentation at the Bradley PME on May 20.Bob Day asked if spin could be discussed by the General Managers on that same agenda.Art passed out the snow load monitoring report from Dryden and LaRue.21 out of 24 stations are working. Maintenance on photovoltaic was deferred to next budget,and to next winter due to access problems.14 batteries were changed-out.Need to watch load cells for differential loading and unloading between spans.IOC asked about insurance coverage for liability on the intertie.Will possibly do a risk assessment.For now,Art will get a report from the intertie risk assessment people on what the insurance currently covers since the utilities are paying the State for the owner to have coverage. Uparade/Extension on Intertie Moving forward.Art will get study completion date from Del. Page 3 of 6 Dispatch Subcommittee MEA has not opened the loop.The intertie is still operating with the loop closed at ML 100 and 101.Gang switches will be changed out to a Turner mechanism and remote control at ML 100 and 101. Reliability/Protection Subcommittee Chairman Ray Morgan needs to call a meeting.This subcommittee or the SAC should model the BESS.GVEA should send the modeling parameters to the SAC by mid-May.Various units have drifted away from the 3%droops listed in the Machine Rating Handbook.The book needs to reflect what the actual droop is on each unit. Machine Rating Subcommittee Check on the published accuracy of droop on all units.Brian reports CEA is hiring a contractor to test the droop on their units.Perhaps if other utilities did the same,the cost for testing would be cheaper.CEA people are to coordinate with Steve Gilbert,MRSC Chair,on unit testing at all utilities. SCADA/Metering/Communications Subcommittee The agenda has been set for the rest of the year.Service for communication lines and microwave has dropped since DIVCOM quit doing the maintenance.Looking at possibly using Alasconnect fiber down to Anchorage for SCADA communications.Brian reports fiber inside the fence at Teeland.Will submit a report after looking at all lease lines. Maintenance Subcommittee Changed-out one control system on the SVS.Per Burlingame's study, SVC's are lacking spare parts.When checking availability,discovered it would cost $500,000 to fully stock spare parts and cover the downtime for a fully re-engineered system.Look at a controls retrofit;what would the impact on spare parts be in that scenario?Would like a study back from EPS by mid-May. Two towers,#279 and 274 are being monitored and have moved.$300,000- $400,000 for repairs per Del LaRue's report.The ridge is unstable and there is no access by road,only helicopter.The group has been talking about buying one or two Lindsey towers.Chairman,Tom Kelly,indicated foundation measurements would be taken in the next two weeks.Demo benchmark measuring will be assisted by Del LaRue's crew. The Maintenance Subcommittee is looking at buying two Lindsey towers for catastrophic tower replacement.GV could possibly split the cost with CEA Page 4 of 6 for Beluga if the towers were interchangeable.The question was asked, what's in inventory for the Intertie spare parts here and in Talkeetna? Budget Get the intertie numbers for FY04 to Art by next meeting. Outage Reporting Multi-part outages have been addressed by the Dispatch Subcommittee. System Operation Open loop,maintaining voltages,etc.This is currently a non-issue. Relay Upqrade Should the relay upgrade be done on the line if we may not even have the line in a year from now?IOC decides upgrade work should continue with CEA solely hiring the contractor (EPS).Then handle coordination with Teeland and Douglas equipment managers as required.All work will be done/installed on State equipment.Brian will proceed to get the design and contract work done.Tom Kelly will check with his counterparts at MEA,and get back to Brian by tomorrow.. (Break:11:00 -11:15 AM) Vil FORMAL OPERATING COMMITTEE ACTIONS/RECOMMENDATIONS 03-??Election of Officers -Chairman Bob Day nominated John Cooley for Chairman.There were no other nominations. The nomination was accepted,and all members present voted to maintain John Cooley as Chairman of the IOC. 03-??Election of Officers -Vice Chair John nominated Henri Dale for Vice Chair,and this was seconded by Bob Day.The motion passed unanimously. 03-7?Election of Officers -Secretary Art Copoulos was maintained as the AIDEA representative standing Secretary. Page 5 of 6 Vil SUBCOMMITTEE ASSIGNMENTS Dispatch Subcommittee >Carry on with current assignments. Reliability/Protection Subcommittee >Needs to meet. Machine/Rating Subcommittee >Look at coordinating unit testing for droop rating. SCADA/Metering/Communication Subcommittee >Keep working on communications.A report to the |OC before the FY04 budget is due would be appreciated. Maintenance Subcommittee >Continue working on SVC issues,and the possible purchase of two Lindsey towers;possibly a joint purchase option between GVEA and CEA for their Beluga towers. Budget Subcommittee >Meet to prepare the FY04 budget. DETERMINE AGENDA FOR NEXT MEETING Discussed agenda for the next meeting which will be held at 10:00 AM on Thursday, July 17,2003,hosted by AEGT.Meeting place to be determined (Bob Day offered Eklutna as a suggested meeting location). ADJOURNMENT Bob Day moved to adjourn.Motion was seconded by Henri Dale.Meeting adjourned at 11:30 AM for lunch,to be followed by a tour of the BESS. Page 6 of 6 VIA FACSIMILE © May 23,2003 \OC Committee:John Cooley,Chugach Electric Association Bob Day/Doug Hall,Anchorage Municipal Light &Power Bob Drake,Matanuska Electric Association Henry Dale,Golden Valley Electric Association Don Stead,Homer Electric Association Re:Notice of Alaska Intertie Meeting The meeting will be held at 2:00 p.m.on May 27,2003 in the boardroom of the Alaska Industrial Development and Export Authority (813 West Northern Lights Blvd).Dryden &LaRue will bepresenttodiscusstechnicalissues. Topics of discussion:1.Alaska Intertie Feasibility Study:Review of Scope and Current Progress2.MEA Right-of-Way and MEA's proposed solution (MEA's letter of 5/9/03 attached) 3.Shared/Parallel Right-of-Way Technical Options , e MEA plans for expanding &upgrading the existing line e Possible structure &conductor arrangements e Snow load considerations e Additional ROW needs 4.Feasibility Study Completion Schedule5.General Managers'participation meeting,to be scheduled at a later date e Review of options discussed May 27 by lOC e Intertie continuity past July 2004 '6.Next IOC meeting on feasibility study,to be scheduled as needed 7.Other Topics for Discussion? AEA Meeting Participants:-7 Ron Miller,Executive Director Brian Bjorkquist,Department of Law Art Copoulos,Project Manager Karl Reiche,Projects Development Manager h:lall\kreiche\project interties\ak intertie agenda 27may03.doc MAY @9 '@3 12:28PM MaT&"IC¢kA ELECTRIC 7 P.1 Matanuska Electric Association,Inc.|Tage /of 3 P.O,Box 2929 Palmer,Alaska 99645-2929 Telephone:(907)745-3231 VIA FACSIMILE Fax:(907)745-9328 AND CERTIFIED MAY May 9,2003 Mr.Ron Miller Executive Director Alaska Industrial Development and'Export Authority/Alaska Energy Authority813WestNorthernLightsBoulevard Anchorage,Alaska 99503 Dear Mr.Miller: I am writing to follow up on our May 2,2003 telephone conversation,and my January 28,2003 letter to James McMillan concerning the December 18,1986 Transmission Services Agreement (Agreement)between MEA and the Alaska Power Authority,A copy of my letter to Mr.McMillan is enclosed. This letter constitutes MEA's notice that it will not be extendingthe Agreement uponitsscheduledJune30,2004 expiration.Although we had previously notifiedAIDEA/AEA that we might not arrive at a decision on the future of the Agreement - until later this summer,our evaluation has concluded earlier than expected and I wanted to share this information with you as soon as possible as a gesture of good faith to your agency. As you are probably already aware,this line segment is a major element in MEA'scurrentandfutureoperatingplans.The line will undoubtedly play a key role in theultimatefutureuseofMEA's Hollywood Road generation site,and it is critically important that MEA have the flexibility of operating it in the manner of our choosing, in either a single or double circuit configuration. As a general proposition MEA will,of course,cooperate with AIDEA/AEA inallowingforsomeeasementoverlapforanewtransmissionline,should your agency decide to proceed with construction adjacent to our existing right-of-way easements,We will,however,require that any overlap be limited to that portion of our easementsbetweenourclosestphaseconductorandtheedgeofourright-of way.Further,thenewlinewillhavetobeconstructedatasufficientdistancefromMEA's existing MAY 89 783 12:29PM MATE ISKA ELECTRIC P.2 Ron Miller May 9,2003 Page 2 facilities as to avoid the possibility of contact between the two lines in the event a structure in either line should fall over.Although our intent is to cooperate with AIDEA/AEA in allowing for some easement overlap,it must be understood that no physical intrusions into our existing easements will be permitted. We will be happy to discuss these conceptual requirements in greater detail with your consultants at a time that is mutually convenient, Wayne D.Carmony General Manager Enclogure d2/prw MAY 69 '@3 12:29PM MOTO"SKA ELECTRIC P.3 Matanuska Electric Association,Inc. PO.Box 2929 Palmer,Alaska 99645-2929 Telephone:(907)745-8231Fax:(907)745-9328 "January 28,2003 Mr.James McMillan Acting Executive Director Alaska Industrial Development and Export Authority/Alaska Energy Authority813WestNorthernLightsBoulevard Anchorage,Alaska.99503 Dear Mr.MeMillan: lam writing to provide you with an update on MEA's plans with respect to the.December 18,1888 Transmission Services Agreement between MEA and the Alaska Power Authority.It ig my understanding that AIDEA/AEA Is the successor agency to the former Alaska Power Authority with respect to this agreement. 'MEA Is In the process of retaining a natlonal engineering consulting firm to provide uswithpowersupplyplanningandother,related services,Part of this effort will includeanevaluationoftheexistingelectricaltransmissionInfrastructureintheRailbelt,including the contractual relationships affecting use of that infrastructure. Once this review is complete,MEA should be in a much better position to advise youofourplansforthaTransmissionServicesAgreement.Although the engagementschedulewithourconsultantsIsstillsomewhatsoft,|expect that we will probably be in a position to provide you with this information by June 30,2003. Sincerely, Wayne D.Carmony General Manager , CLADMINACorTRapCitatiy BECORE.38.02ADEA doe zt . 4 Alaska Industrial Development and Export Autt Alaska Energy Authority VIA FACSIMILE xy May 16,2003 IOC Committee: John Cooley,Chugach Electric Association Bob Day/Doug Hall,Anchorage Municipal Light &Power Bob Drake,Matanuska Electric Association Henry Dale,Golden Valley Electric Association Don Stead,Homer Electric Association Re:Notice of Alaska Intertie Meeting The meeting will be held at 2:00 p.m.on May 27,2003 in the boardroom of the Alaska Industrial Development and Export Authority (813 West Northern Lights Blvd).Dryden &LaRue will be present to discuss technical issues.ee"eA,Topics of discussion:osmeyy"<h Alaska Intertie Feasibility Study:Review of Scope and Current Progress an,oeoOMEARight-of-Way and MEA's proposed solution (MEA's letter of 5/9/03 attached)Z .Shared/Parallel Right-of-Way Technical Options e MEA plans for expanding &upgrading the existing line e Possible structure &conductor arrangements tw wb "..i qWAeSnowloadconsiderationsyewl CL¢Additional ROW needs we LF My FFaddAS-et4.Feasibility Study Completion Schedule oY»SY N'5.General Managers'participation meeting -*°me \s>e Review of options discussed May 27 by lOCeIntertiecontinuitypastJuly2004 6.Next 1OC meeting on feasibility study,to be scheduled as needed 7.Other Topics for Discussion? AEA Meeting Participants: Ron Miller,Executive Director Brian Bjorkquist,Department of Law Art Copoulos,Project Manager Karl Reiche,Projects Development Manager h:\all\kreiche\project interties\ak intertie agenda 27?may03.doc 813 West Northern Lights Boulevard *Anchorage,Alaska 99503907/269-3000 *FAX 907 /269-3044 ®Toll Free (ALASKA ONLY)888 /300-8534 *www.aidea.org MAY @9 723 12:28PM MATE 2 ELECTRIC P.i zBMatanuska Electric Association,Inc.)'Yage [of3 P.O,Box 2929 Palmer,Alaska 99645-2929 Telephone:(907)745-3231 Fax:(907)745-9328 VIA FACSIMILE AND CERTIFIED MATL May 9,2003 _MEA ull only talk fo MEAMr.Ron Miller hue ¢upped loc TyeftExecutiveDirector-rile Q teyt tO 1M proveAlaskaIndustrialDevelopmentand"by &su e)Export Authority/Alaska Energy Authority G note "sou813WestNorthernLightsBoulevard(_vheeling piceAnchorage,Alaska 99503 ayonste.-Seem mresrsted uelDearMr.Miller:leg at ort :Encore,I am writing to follow up on our May 2,2003 telephone conversation,and my January conden);28,2003 letter to James McMillan concerning the December 18,1986 Transmission Services Agreement (Agreement)between MEA and the Alaska Power Authority,A copy of my letter to Mr.McMillan is enclosed._-Natek ecthiswry”This letter constitutes MEA's notice that it will not be extending the Agreement upon pricksitsscheduledJune30,2004 expiration.Although we had previously notified (ays 1)AIDEA/AEA that we might not arrive at a decision on the future of the Agreement until later this summer,our evaluation has concluded earlier than expected and I wanted to share this information with you as soon as possible as a gesture of good faith to your agency. As you are probably already aware,this line segment is a major element in MEA's current and future operating plans.The line will undoubtedly play a key role in the ultimate future use of MEA's Hollywood Road generation site,and it is criticallyimportantthatMEAhavetheflexibilityofoperatingitinthemannerofourchoosing,; in either a single or double circuit configuration. -(rhein own As a general proposiiion MEA wiil,of course,cooperate with AIDEA/AEAin allowing for some easement overlap for a new transmission line,should your agency decide to proceed with construction adjacent to our existing right-of-way easements, We will,however,require that any overlap be limited to that portion of our easementsbetweenourclosestphaseconductorandtheedgeofourright-of way.Further,the on=ftnewlinewillhavetobeconstructedatasufficientdistancefromMEA's existing -Me eo\o a?iMsKaLATTE TE hase,bo avad possilo:My oF'S A IRS \tower Falling ¢ten doesht lewaLmuchRoomMmWarAdW. gt)_aity=Twpracke al Ceeware'w\ a 1 MAY 89 "G3 «12:29PM MATF 7 ELECTRIC P.2 Ron Miller May 9,2003 Page 2 facilities as to avoid the possibility of contact between the two lines in the event astructureineitherlineshouldfallover.Although our intent is to cooperate withAIDEA/AEAinallowingforsomeeasement overlap,it must be understood that nophysicalintrusionsintoourexistingeasementswillbepermitted. We will be happy to discuss these conceptual requirements in greater detail with your consultants at a time that is mutually convenient. Sincerely, Wayne D.Carmony General Manager Enclosure d2/prw MAY @9 783 12:29PM MATE 7 ELECTRIC P.3 Matanuska Electric Association,Inc. P.O.Box 2929 Palmer,Alaska 99645-2929 Telephone:(907)745-9231Fax:(907)745-9328 "January 28,2003 Mr.James McMillan Acting Executive Director Alaska Industrial Development and Export Authority/Alaska Energy Authority 813 West Northern Lights Boulevard Anchorage,Alaska.99503 Dear Mr,MeMillan: |am writing to provide you with an update on MEA's plans with respect to theDecember18,1986 Transmission Services Agreement between MEA and the Alaska Power Authority.It is my understanding that AIDEA/AEA Is the successor agency to the former Alaska Power Authority with respect to this agreement, MEA is in the process of retaining a natlonal engineering consulting firm to provide us with power supply planning and other,related services.Part of this effort will includeanevaluationoftheexistingelectricaltransmissioninfrastructureintheRailbelt, including the contractual relationships affecting use of that infrastructure. Once this review is cornplete,MEA should be in a much better position to advise you of our plans for the Transmission Services Agreement.Although the engagementschedulewithourconsultantsisstillsomewhatsoft,|expect that we will probably be in a position to provide you with this information by June 30,2003. Sincerely, Way we,Comune ™|Wayne D.Carmony General Manager . 8.02 AIDE ASS Facsimile Transmittal TO:Del COMPANY: Fax #:()522-2534 FROM:Art Copoulos DATE: TIME: a Number of pages including cover page:) Transmittal Contents: Comments: Notice:This facsimile may contain confidential information that is being transmitted to and is intended only for the use of the recipient named above.Reading,disclosure,discussion, dissemination,distribution,or copying of this information by anyone other than the named recipient or his or her employees or agents is strictly prohibited.If you have received this: facsimile in error,please immediately destroy it and notify us by telephone,(907)269-3000. ©\ty \© Art Copoulos Page 1 of 1 From:John Cooley [John_Cooley@chugachelectric.com] Sent:Friday,May 16,2003 2:25 PM To:ACopoulos@aidea.org Subject:Re:FEW:proposal I would say go ahead and get done. John S.Cooley,PE Manager,Power Control &Fuel Mgmt. Chugach Electric Association,Inc. >>>Art Copulas <ACopoulos@aidea.org>05/16 1:45 PM >>> IOC Members, The IOC Maintenance subcommittee has recommended pursuing additional study of the SVS spare parts issue as described in the attached proposal,please contact your respective member for details.This was also discussed the recent IOC meeting,but I don't believe we had a specific dollar amount or vote of spending what is proposed here (11K). Approval or disapproval of spending approximately 11K to complete this follow-on study is requested by email so the work can be done before the next IOC meeting. Art nooneOriginal Message----- From:David W.Burlingame [mailto:dburlingame@epsinc.com] Sent:Friday,May 16,2003 12:06 PM To:'Art Copoulos' Subject:RE:proposal You know,sometimes you just have to be direct.Based on the scope,this estimate is probably high,so I would recommend T&M,but either way is ok with us. From:Art Copoulos [mailto:ACopoulos@aidea.org]} Sent:Friday,May 16,2003 11:55 AM To:dburlingame@epsinc.com Subject:proposal Dave, Please send proposal on spare parts study extension today.Thanks,Art 05/16/2003 | Art Copoulos From:Art Copoulos Sent:Friday,May 16,2003 1:46 PM To:'John Cooley';'DayRH@ci.anchorage.ak.us';'Halldw@ci.anchorage.ak.us', 'dstead@homerelectric.com';'RCdrake@matanuska.com';'hfdale@gvea.com' Ce:'Charlie Kimmel';'Doug Hall';'Tom Kelly';'Monte Ervin' Subject:FW:proposal POF sabe Spare_parts_propos al_2.pdf IOC Members, The lOC Maintenance subcommittee has recommended pursuing additional study of the SVS spare parts issue as described in the attached proposal,please contact your respective member for details.This was also discussed the recent 1OC meeting,but |don't believe we had a specific dollar amount or vote of spending what is proposed here (11K). Approval or disapproval of spending approximately 11K to complete this follow-on study is requested by email so the work can be done before the next |OC meeting. Art -----Original Message From:David W.Burlingame [mailto:dburlingame@epsinc.com] Sent:Friday,May 16,2003 12:06 PM To:'Art Copoulos' Subject:RE:proposal You know,sometimes you just have to be direct.Based on the scope,this estimate is probably high,so |would recommend T&M,but either way is ok with us. -----Original Message----- From:Art Copoulos [mailto:ACopoulos@aidea.org] Sent:Friday,May 16,2003 11:55 AM To:dburlingame@epsinc.com Subject:proposal Dave, Please send proposal on spare parts study extension today.Thanks,Art 8.8 _G2.) _-TOC Meeting _ Minutes--odsptd GM?+spy eorove. 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Fs | . | : . . cn . | | | b | . ; * Me »Y | ' : mo, L , | , - qo , | ' N , | , ; ' N\awh aundiay Toure \ue&{|Lp -claulecau=on seCrates2a]flag te ASL >\N Cova ht shangLek@caiopt>baw >Mute |}if Ribak "Do mt¢when gf nowhus Mk--VWIVE -4s ee "J q | Rolay upghalers,-vrs AsteYQusim _Deo we wk &do +Q)MEA d&conmert@ (futon toa) =>Existing Relays _4 Tonk £Cwray be,SanarevelEunctons)"cadet eA pC aun Some Fadlts- aok oiniouglh 'abermet ton ,New Relays will provide We Lil.- _C2)=_\tow rel PDauyles contra ching C BSeeeienans nll MED NP,TE eo er tier Se ISy.contd."Sine see Sah Kappel Jline G co =8 HeadedPuadserEPs:aee ener ema eT DO cy "Contactag on VDeuglua)é il Ee cniact Jadensool Fpimowrey[Tostallng on”ATitete eqguprerstaeaOnSterho (eoted [1% _Tera-CEA Doughada MEA. |Poiton prshena con broads wl EPS fer whe tery|,TOMA.Ols th ls.4 R now)_wi :We PROCEED (CEAWMWit_nou MEA:cout,put te wil (utc SALAM KOO bow OK 7 , . ' . . iy . . ' . . \ ' . . . . . ; : : ' . . ° ' TALI ITIIIIITE apaanenet! 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' " ' _ e - | -- ee rt hee Ine,vatd.Bi@__wwsves ee "\ma eA -Cc wreottoeSPW -(+cc een -le a ;eons ev isdy ooraepe6v0com,- 7S a .|)-f 2; LT Kae t Minutes -(2,-|aa Prmerse a 4S beacon om -_TM Daa Se G.\2e2 \aa €s/cCc,Mach te,odin SieDServaSie EE Maw-3:sic '2 nating ad}_/cjOnUp4on3 H.STATIS Reps +Cor,bathe een.We 2f Vis rTOU ¢>)prow],xt of Ee man Fx,Sy we ek)SLMS FE Scr coe Q M gan dem fet a Ryn tag a.&ia) aa Outene (eq;.Suny a Sry olan Oo p tafe Qe ad K.Reon,Wp on «dhe TeParn.Develan V LI .Ferm a & A,Slee an)7 oO 4 cay 8 STUN Vil Sle Pacers.ay aps Kaine sy It,=ASHI TuLOR vo hb Pp)gous wen Present: Art Copoulos Henri Dale Bob Day Bob Drake Doug Hall Brian Hickey Bob Price Ed Ruebling ) "J ALASKA INTERTIE OPERATING COMMITTEE MEETING MINUTES THURSDAY,JANUARY 16,2003 (MUNICIPAL LIGHT &POWER ENGINEERING CONFERENCE ROOM) Alaska Energy Authority Golden Valley Electric Association Anchorage Municipal Light &Power Matanuska Electric Association Anchorage Municipal Light &Power Chugach Electric Association Anchorage Municipal Light &Power Anchorage Municipal Light &Power Henri Dale called the meeting to order at 10:11 a.m. I. II. Hil. ADOPTION OF PRIOR MEETING MINUTES Minutes for the October 10,2002 meeting were adopted with changes to Section VI, item H. APPROVAL/MODIFICATION OF AGENDA The following agenda items were adopted:Teeland-Douglas;12-22 Outage;Under build;Quarterly Reliability Report;and Spins. COMMITTEE CORRESPONDENCE AND REPORTS A.Dispatch Subcommittee Doug Hall provided the following comments.As a result of the September 7 outage,the question as to what constitutes a muti-part outage arose.Doug suggested that guidelines or a process be created to aid in defining outages these types of outages. Reliability /Protection Subcommittee No report. Machine Rating Subcommittee Bob Day reported the subcommittee met in November,2002 and that GE will investigate the affect that the Aero Derivative H constant will have on the interconnected system. SCADA/Metering/Communications Subcommittee No report. Maintenance Subcommittee No report. Budget Subcommittee No report. Upgrade/Extension Subcommittee Art Copoulos reported that he received responses from Power Engineers, Alaska Anvil,and Dryden &LaRue to the RFP and requested committee members to participant in the selection committee.CEA,ML&P,and GVEA volunteered to provide a representative for the selection committee. IV VI Participants should contact Karl Reiche (AEA)at 269-3717 for further details. Art will provide a copy of the proposal to participants. Intertie Status Report No report.However the following comments were provided: (1)Lost CT connection in Healy,the intertie was taken out and the CT wiring fixed. (2)Southern Intertie -Teeland SVS is acting up.There is an intermittent control card problem.Art stated that a replacement card study is being conducted and will be completed prior to February 14,2002. (3)Lost CT circuit at Gold Hill SVS.Suspect ice in the cable trays.Is working now and will be permanently fixed next summer. Communications Received MEA sent a letter to the participants requesting non-objection to their attaching to an intertie pole near Sunset dr. VISITOR'S COMMENTS RELATED TO ITEMS ON AGENDA Bob Day introduced Ed Ruebling to committee members.Ed is the new Generation Manager at ML&P.Ed's mechanical engineering experience includes working with Conoco Phillips Alpine,Trans-Alaska Pipeline,Engineering Alliance &British Petroleum,North Slope Projects,General Electric Power Generation and McDonnell Douglas Aircraft Company. RECESS Recess was deferred-went right into work session. WORK SESSION A.Snow Load Monitor Problem:The inclinometers don't reliably predict snow load imbalance. However,potential problems can be identified.The load cells work OK. Discussion included the need to fund construction to fix the problem permanently. Upgrade /Extension of Intertie to Teeland Upgrade of Teeland to Hollywood Road -There was discussion of under build clearance (meeting codes)issue between Sunset Ave to Hollywood. Members agreed that if the under build meets applicable code,and is not in the banned area,they may attach the under build.Art is to verify that it is not in the banned area. Dispatch Subcommittee There is a voltage support problem on the south end of the Southern Intertie which may be a cause for concern in the near future. Reliability/Protection Subcommittee The relay design upgrade study by EPS for Teeland/Douglas should be submitted to the utilities soon. Machine Rating Subcommittee The technician's test for the BESS system should be completed by late spring/early summer.Batteries are currently being installed. VII. VI. F.SCADA/Metering/Communications Subcommittee They have met,and are investigating discrepancies between their metering and the GEM meters that are installed down there. G.Maintenance Subcommittee No discussion. H.Budget SubcommitteeThefirstsentenceofOctober's minutes is amended to read:"AIDEA will |'e)'investigate and report on how they (not necessarily AIDEA)might be able t fund capital improvements to the Intertie.” I.Outage Reporting Bob Day briefed the 12/22 outage and provided members a copy of the outage analysis. J.System Operation It was noted that MEA is currently running with the 115 kV loop closed. FORMAL OPERATING COMMITTEE ACTIONS/RECOMMENDATIONS A.Upgrade of Teeland Line to Hollywood Road Art Copoulos stated that he would like to move forward with the MEA under build proposal regarding if the line was in the "banned area”and members agreed with this action. B.Quarterly Reliability Report (QRR) Bob Day provided a copy of the QRR to the committee members.He stressed the importance of timely data entry for this report. C.-SpinsBobDay recommended that the proposal to change the Spins allocation formula be presented to the General Managers.Members agreed to present this issue individually to each General Manager. D.Upgrade/Extension Subcommittee CEA,ML&P,and GVEA agreed to provide a representative for the RFP selection committee.Art asked that participants contact Karl Reiche (AEA)at 269-3017 for further details regarding the selection committee.Art will provide copies of the proposal to participants. E.Southern Intertie_(SD)Tower Repair Art made a recommendation for a cost-savings proposal to repair the broken pilings at towers 274 and 279.His proposal is to contract with PAR construction to repair the foundations since their equipment is already in place for the Northern Intertie project.A "Time &Material”contract could be used at a cost of approximately 300K.Members support this proposal.Henri Dale will coordinate with the Maintenance Subcommittee and investigate funds since there are no funds available in the budget for this item.Once the coordination is completed,Henri will arrange a teleconference to brief committee members. SUBCOMMITTEE ASSIGNMENTS No Subcommittee assignments. IX.DETERMINE AGENDA FOR NEXT MEETING The next meeting was set for April 17,2003,at GVEA starting at 10:00 a.m. ADJOURNMENT Bob Day moved to adjourn.Doug Hall seconded the motion.Meeting adjourned at 12:06 p.m. BY: Henri Dale,Vice-Chairman \3-\ MEMORANDUM DATE:July 26,2002 TO:Wayne Carmony FROM:Bob Drake SUBJECT:Intertie Operating Committee Meeting 7-25-02 $20,300,000 State Grant to AEA |attended the IOC meeting in Homer yesterday.Usually |attend these meetings out of the Anchorage Bowl by telephone,but the main topic of discussion was to be the State grant of $20,300,000 for extension and upgrade of the intertie. All utilities were represented,ML&P (Bob Day,Doug Hall &Bob Price),CEA (John Cooley in person and Brian Hickey by phone),and 1 from GVEC (Henri Dale),HEA (Don Stead)and Art Copoulos from AEA.No one at the meeting knew which utility or which person had lobbied for the money.Brian Hickey stated no one at CEA knew just what the money was supposed to be for.Bob Day thought there was a one-page description of what was to be done,but he had never seen the document.Day thought. Mike Scott might be the one who asked for the money.John Cooley stated CEA's Lee Theibert was in Juneau at the time,but he was not the one asking for this money.Henri Dale stated GVEC had given up on getting more money for the line several years ago. Art Copoulos indicated the Director of AEA told him the grant was made to AEA due to the problems between some of the utilities.Art stated AEA is insisting whatever is done is built by a competitive bid and that a steering committee of the interested utilities be formed to identify the scope of work. Someone mentioned it was to be a 230 kV line.Art stated he had not heard anything 9 <-about a 230 kV line.. Hickey thought there were 4 or 5 issues to be discussed by the steering committee. 1.115 kV insulators on a 138 kV line (MEA's section of line)2.Shorten the insulator strings on the 345 kV line to 230 kV due to snow loading problems ae 3.Change 345 kV line to 230 framing would increase capacity Page 2 4.Convert distribution substations to 230 kV John Cooley mentioned the use of MEA's section of line expires in 2004.Most everyone thought the main issue was to bypass MEA's section of line. Hickey indicated Steve Hugeness had talked to him about the need to upgrade the . Gold Hill Substation.Doug Hall stated that was not part of the intertie.Dale thought it was part of the intertie since the Static Var Control was at Gold Hill. Several people were concerned that $20 million was not enough to do much. Dale indicated GVEC idea is to upgrade Stevens,Cantwell and Healy Substations must be part of whatever is done if the line is converted to 230 kV. A steering committee was formed and will try and meet in the near future.GVEC ishopingtohaveadecisionfromthecommitteeintwomonths,but |doubt that will happen.| |was asked if MEA wanted to be involved.|replied that MEA would be very actively involved in protecting our interests,just like |expected each utility would be.|was asked if there was any way MEA could be convinced to allow our line to be upgraded orforourright-of-way to be used.|replied that |could not answer that one way or another for MEA,but that it had been my personnel experience that there were few issues or problems that could not be dealt with given enough money. During a break,Copoulos told me AEA's goal!is to make sure no utility is harmed in any way,and he is concerned that a bypass of MEA's line would harm us. ae=-[Foo Oe.es a >MAR 4 Vevey CEL.v.ee7 Aeke INE Sees ue mo G ou Cun linewenoedwwwMLEP.SE [roa he ne.avedhing i KASSwind lop_MUP once.reper f (emel he.Mo Tt a Me:-eee PTA -_J1 NoV fESsQ:ARS w =De ck.send an oe Q ne update SOW:}a _ On...LM TA Ce Dicer FAENFary ie_-2 cudvovuers gre morte to.Ach-Red Poversee_Cos™:age =be Compe drodky,V4"A sy.He Qewie <e.ea "\-4 Lee.ve|ne eed bh _seen ee SCP PLR...ofLF cokiC=.Never \neordos 230 KV |-Odanwaerey Ve oaay.xX Gre.eencepls.ae Wh:os Mowe war,7ase-'or oda a CEA bee knows eaaewact&;;{p=Hatchdocech now,abe thas.See Lee he rece wax there bmieSidnotaskLeMewS14Ag-aA least £3 [ssureg _\_JUS LU ws on.\3K.lange-budd.soy Pass2)..aren 3¥S _staings.to _ 230...due.to nr loading a3).chengieg bevw230 Aceming eooaldIneresSeLcugacityUNcruerrsysuls+BOW >_b9-matwes Ne.eet _feMied Se.tbhnak sure-- ''|: i i ' j \ US.MEL S dae eypiren.'in Age ¢ \thems.rae AEA. Lelee.hee.Ae "o- -,1:Ne.Lome.ar.coche enous waeSULeeooaedNiaces"oy EC _--_N cea Sey qvade.!Cah en Do One Lows.->wale Gnee ea-ys-hp Uw LeVvewns_-|-Ak k Gok250odVevel\aepass.ok AED ar:ee ne Cee ee a ee _ DATE: TO: FROM: MEMORANDUM September 17,2002 Wayne Carmony Bob Drake SUBJECT:Intertie Committee --Recommendations on $20,300,000 Grant(Tim DeVries-GVEC,Dora Gropp-CEA,Mike Kiech-ML&P,Karl Reiche-APA,and Bob Drake) At the IOC subcommittee meeting today,the group decided to advance the following recommendations to the IOC on how to spend the grant money.Theitems listed are in the order of priority set by the committee.While |am on the subcommittee,|made it clear that MEA is only interested in getting our line back for our sole use,and MEA was not advocating what the money should be spent on. 1.Replace the controls to each SVC (3 sites).These controls would be the same ones needed if the SVC were replaced with either the same size or if the SVCs were upgraded to 230 kV.Total estimated cost =$1,850,000.[total replacement of the SVC with same size is estimated at $20,000,000,and new SVC for 230 kV line is estimated at $28,100,000) .Anew line from Hollywood Road to Douglas.Estimated between $8,550,000 and $15,200,000.Although CEAis skeptical it can be done even at the higher estimate..Snow load problem fix.Estimates were from a 1995 Dryden &LaRue study andwerealloverthemapdependingonwhatfixisdecidedon.Not urgent issue. Fixes can be done one structure at a time if necessary. .Rebuild Intertie from Teeland to Hollywood.Estimated cost =$1,000,000 to $2,500,000.Not urgent issue,since cost is not so great and a few interested utilities could afford to upgrade if they want to at a later date. Item #1 was decided as a must do project. Item #2 was decided as a must do project.The committee will recommend the IOC hire a consulting engineer to investigate all possible options,including Route alongside MEAs line e Newroute Purchasing MEA's line-an estimate to convert this line to 230 kV was set at $5-9 million.Total cost of this option is unknown since not known if MEAiswillingtoselloratwhatcost. Page 2 e Lease MEA's line if MEA not willing to sell,but willing to some other arrangement. Karl Reiche stated AEA will likely hire an independent engineer to evaluate whatever the l|OC comes up with.He stated AEA would likely prefer one of the utilities to act as project manager for each project.He also indicated AEA will be approaching MEA at the appropriate time to discuss extending the Intertie Services Agreement since it expires in 2002.Mike Kiech,ML&P,asked why they haven't already done so since it is not long before the agreement expires. MEMORANDUM DATE:October 11,2002 TO:file FROM:Bob Drake SUBJECT:[IOC 10/10/02 Meeting notes on $20.3 million grant pee we Art Copoulos-AEA intends to focus on line from Hollywood Road to Douglas Substation.AEA considers using grant money to upgrade the SVC system to besecondarytothepurposeofthegrant. John Cooley (CEA)-SVC is required for any power to be transferred over the intertie. He considered the SVC critical even though MEA has given notice they intend to take back the line from Hollywood to Douglas when the agreement expires.Cooley stated MEA would not be able to kick other off the intertie suddenly;the public need will require MEA to allow use,but likely at a higher cost. ALASKA INTERTIE OPERATING COMMITTEE MEETING MINUTES THURSDAY,JANUARY 16,2003 | (MUNICIPAL LIGHT &POWER ENGINEERING CONFERENCE ROOM) Present: Art Copoulos Henri Dale Bob Day Bob Drake Doug Hall Brian Hickey Bob Price Ed Ruebling Alaska Energy Authority Golden Valley Electric Association Anchorage Municipal Light &Power Matanuska Electric Association Anchorage Municipal Light &Power Chugach Electric Association Anchorage Municipal Light &Power Anchorage Municipal Light &Power | Henri Dale called the meeting to order at 10:11 a.m. I. Il. IH. ADOPTION OF PRIOR MEETING MINUTES Minutes for the October 10,2002 meeting were adopted withnh changes to Section VI,item H. APPROVAL/MODIFICATION OF AGENDA The following agenda items were adopted:Teeland-Douglas;12-22 Outage;Underbuild:Quarterly Reliability Report;and Spins.. COMMITTEE CORRESPONDENCE AND REPORTS A.»QmmmmYUDispatch Subcommittee . Doug Hall provided the following comments.As a result of the September 7 outage,the question as to what constitutes a muti-part outage arose.Doug suggested that guidelines or a process be created to aid in defining outages these types of outages. Reliability /Protection Subcommittee No report. Machine Rating Subcommittee Bob Day reported the subcommittee met in November,2002 and that GE will investigate the affect.that the Aero Derivative H constant will have on the interconnected system.SCADA/Metering/Communications Subcommittee No report. Maintenance Subcommittee No report. Budget Subcommittee No report. Upgrade/Extension Subcommittee Ast Copoulos reported that he received responses from Power Engineers, Alaska Anvil,and Dryden &LaRue to the RFP and requested committee members to participant in the selection committee.CEA,ML&P,and GVEA volunteered to provide a representative for the selection committee. Participants should contact Karl Reiche (AEA)at 269-3717 for further details. Art will provide a copy of the proposal to participants. Intertie Status Report No report.However the following comments were provided: (1)Lost CT connection in Healy,the intertie was taken out and the CT wiring fixed. (2)Southern Intertie -Teeland SVS is acting up.There is an intermittent 'control card problem.Art stated that a replacement card study is being , conducted and will be completed prior to February 14,2002. (3)Lost CT circuit at Gold Hill SVS.Suspect ice in the cable trays.Is working now and will be permanently fixed next summer. Communications Received MEA sent a letter to the participants requesting non-objection to their attaching to an intertie pole near Sunset dr. VISITOR'S COMMENTS RELATED TO ITEMS ON AGENDA Bob Day introduced Ed Ruebling to committee members.Ed is the new Generation Manager at ML&P.Ed's mechanical engineering experience includes working with Conoco Phillips Alpine,Trans-Alaska Pipeline,Engineering Alliance &British Petroleum,North Slope Projects,General Electric Power Generation and McDonnell Douglas Aircraft Company. RECESS Recess was deferred-went right into work session. WORK SESSION A.Snow Load MonitorProblem:The inclinometers don't reliably predict snow load imbalance. However,potential problems can be identified.The load cells work OK. Discussion included the need to fund construction to fix the problem permanently. Upgrade /Extension of Intertie to Teeland Upgrade of Teeland to Hollywood Road -There was discussion of under build clearance (meeting codes)issue between Sunset Ave to Hollywood. _Members agreed that if the under build meets applicable code,and is not in the banned area,they may attach the under build.Art is to verify that it is not in the banned area. . Dispatch Subcommittee There is a voltage support problem on the south end of the Southern Intertiewhichmaybeacauseforconcerninthenearfuture. Reliability/Protection SubcommitteeTherelaydesignupgradestudybyEPS for Tecland/Douglas should be submitted to the utilities soon. Machine Rating Subcommittee The technician's test for the BESS system should be completed by late spring/early summer.Batteries are currently being installed. F.SCADA/Metering/Communications SubcommitteeTheyhavemet,and are investigating discrepancies between their metering and the GEM meters that are installed down there. Maintenance Subcommittee No discussion. Budget Subcommittee The first sentence of October's minutes is amended to read:"AIDEA will investigate and report on how they (not necessarily AIDEA)might be abletofundcapitalimprovementstotheIntertie.” I.Outage Reporting Bob Day briefed the 12/22 outage and provided members a copy of the outage analysis. J.System OperationItwasnotedthatMEA is currently running with the 1SkV loop closed. VI FORMAL OPERATING COMMITTEE ACTIONS/RECOMMENDATIONS A.Upgrade of Teeland Line to Hollywood RoadArtCopoulosstatedthathewouldliketomove forward with the MEA under build proposal regarding if the line was in the "banned area”and members agreed with this action. B.Quarterly Reliability Report (QRR) Bob Day provided a copy of the QRR to the committee members.He stressed the importance of timely data entry for this report.. C.Spins Bob Day recommended that the proposal to change the Spins allocation formula be presented to the General Managers.Members agreed to present this issue individually to each General Manager. D. Upgrade/Extension Subcommittee CEA,ML&P,and GVEA agreed to provide a representative for the RFP selection committee.Art asked that participants contact Karl Reiche (AEA)at 269-3017 for further details regarding the selection committee.Art will provide copies of the proposal to participants. E.Southern Intertie (ST)Tower Repair Art made a recommendation for a cost-savings proposal to repair the broken pilings at towers 274 and 279.His proposal is to contract with PAR construction to repair the foundations since their equipment is already in place for the Northern Intertie project.A "Time &Material”contract could be used at a cost of approximately 300K.Members support this proposal.Henri Dale will coordinate with the Maintenance Subcommittee and investigate funds since there are no funds available in the budget for this item.Once the coordination is completed,Henri will arrange a teleconference to brief committee members. VI.SUBCOMMITTEE ASSIGNMENTS No Subcommittee assignments. Tuesday May 6 Alaska Air Fit.#20,Leave Anch.9:55 AM,Arr.Dutch Harbor 12:01 PM Penair Fit.#4315,Leave Dutch Harbor 1:00 PM,Arr.Atka 2:00 PM Overnight in Atka,Penair Charter May 7 to Dutch Harbor,see below (Ed Weiss and Charles Mobley Leave Dutch Harbor May 7 Alaska Air Fit.#23 5:23 PM,arrive Anchorage 7:15 PM) Four Passengers: 1)Peter Crimp,AEA 2)Earle Ausman,Polar Consultants 3)Cindy Anderson,ADFG 4)Charles Mobley,Archeology Consultant Wednesday May 7 Security Aviation Charter,Leave Anchorage for Atka at 6:00 AM,Leave Atka for Nikolski 12:30 PM,Leave Nikolski 4:00 PM,Arr.Anchorage 8:00 PM Seven Passengers:Return Passengers: 1)Lenny Landis,AEA .1)Lenny Landis,AEA 2)Bryan Carey,AEA 2)Jeff Stanley,CRW 3)Dennis Meiners,AEA 3)Karl Hulse,CRW 4)Jeff Stanley,CRW 4)Tim Hall,EPS 5)Karl Hulse,CRW 5)Peter Crimp,AEA 6)Tim Hall,EPS 6)Earle Ausman,Polar Cons. 7)Gerald Hutterer,Geothermal Penair Charter,Leave Atka 2:00 PM,Arr.Dutch Harbor 4:00 PM (in order to make 5:30 PMflighttoAkutan,and 5:23 PM Alaska Airlines flight to Anchorage) Five Passengers: 1)Dennis Meiners,AEA 2)Gerald Hutterer,Geothermal 3)Cindy Anderson,ADFG 4)Charles Mobley,Archeology Consultant 5)Bryan Carey Penair Fit#'?Dutch Harborto Akutan (see Bryan Carey and Dennis Meiners) ?___Passengers: 1)Bryan Carey,AEA 2)Dennis Meiners,AEA 3)Gerald Hutterer,Geothermal DETERMINE AGENDA FOR NEXT MEETING The next meeting was set for April 17,2003,at GVEA starting at 10:00 a.m. ADJOURNMENT Bob Day moved to adjourn.Doug Hall seconded the motion.Meeting adjourned at 12:06 p.m. BY: Henri Dale,Vice-Chairman MEMORANDUM DATE:January 28,2003 TO:Wayne Carmony FROM:Bob Drake Ho - SUBJECT:Proposal to change Intertie Agreement In the past few years,the IOC has been discussing how to pay for capital improvements and costly maintenance items since the Intertie Agreement does not describe how to deal with either.Currently there are some foundation repairs,that should probably be made in the next couple of years,estimated to cost $200,000 to $300,000.If the SVS system is not paid for by the State grant money,then the IOC is looking at a $500,000 to $1,000,000 cost to replace the system. CEA and possibly a few others,are proposing the attached changes to the Intertie Agreement.|recommend we do not agree to the changes.However,there is a 'pressing need to find a way to fund costly maintenance and capital projects.The only method used to date was with the snow load monitoring project whereby GVEC agreed to front the money and the AEA is paying the cost back yearly from revenues from use of the intertie. xc:Don Zoerb Robert C Drake From:John Cooley [John_Cooley@chugachelectric.com] Sent:Monday,January 27,2003 4:17 PM To:.ACopoulos@aidea.org;John Cooley;hfdale@gvea.com;DStead@HomerElectric.com; rcdrake@matanuska.com Cc:'Brian Hickey;HallDW@ci.anchorage.ak.us;JSchroeder@HomerElectric.com Subject:Possible Amendment to AIA roposalforAmend 2 to AIA.do... Several of the budget subcommittee members met with AIDA/AEA staff on November 13 to discuss possible alternatives to fund capital repairs to the Intertie.One of the alternatives was to modify the Agreement to establish a Maintenance Reserve Fund.Over the past 15 or so years of operation,the rates charges generated about $1.6 million that could have gone into a MRF.Actually $2.5 million was refunded and $1 million was charged per MITCR shares.When the Agreement was negotiated there was a concern that excess revenues could/would revert to the General Fund (the Legislature funded operations that were reimbursed by the Utility Participants).I believe this concern went away with the demise of the old AEA and combination with AIDEA.The State no longer providesanyfundingandtheyhaveheldSVSfundsforusforquite-a few years. Would your utility be interested in an Amendment along the lines of the attachment?If so I would be willing to meet with any or all of you to discuss the details needed to complete the idea.Let mé know your thoughts. John S.Cooley,PE Manager,Power Control &Fuel Mgmt. Chugach Electric Association,Inc. Proposal for Amendment 2 to Alaska Intertie Agreement -Background Agreement was implemented in the mid 1980's when the State Legislature appropriated _money to operate the Intertie and the Utility Participants reimbursed the State forexpenses.The Agreement was also written to prevent any excess funds from reverting to the State general fund.Several provisions are no longer being applied because the situation has changed and the Utility Participants fund all expenses. Proposed Changes Delete section 2.2.3,which allowed any Participant to terminate its participation within 30 days of AEA issuing any debt for the project and'add a provision thatrequiresIOCapprovalinadvanceofanydebtforrepairsorenhancementstotheIntertie. Add to section 8.1 a provision for a maintenance reserve fund.e Rewrite section 8.1.3 detailing the budget process,The 13-month process and approval by the AEA Boardis not being followed.Approval by the IOC prior to thestartoftheFYshouldbeadequate.Rewrite section 8.2.2 to use a multi-year average but not less than 30%of capacity as the annual energy usage estimate. Possibly revise section 8.2.5,energy rate,but retain the 83.5%allocation to energy. Rewrite section 8.4.5 to put year-end surplus (revenue minus expenses)into themaintenancereservefund.. Rewrite section 8.4.6 to fund year-end shortfalls (expenses minus revenue)from the maintenance reserve fund unless the fund drops below some floor in which case the .shortfall would be assessed on the basis of MITCR. Add section 9.1.3 giving IOC budget approval authority. Delete or rewrite section 10.3,Budget for Operation of the Intertie,to eliminate the fixed costs for operators.Any new section should reflect actual practice.Steps 'outlined have not been followed since AEA succeeded APA. Alaska Intertie Upgrade Study Prepared for: State of Alaska (AEA) Prepared by: Dryden &LaRue,Inc. March 2003 PROJECT UNDERSTANDING The existing.115kV Matanuska Electric Association (MEA)Transmission line is part of the Alaska Intertie that supplies power from Teeland Substation to Fairbanks.The State of Alaska (AEA)has requested that alternative lines be evaluated. The Alaska Intertie Upgrade Study will provide feasibility level assessments of several options for replacement or upgrade of the existing'line from Teeland to Douglas Substation.Basis for this review will be a typical 230kV line design suitable for the Mat- Su environment.Alternative designs and routes will be compared using data such as property ownership,number of impacted parcels,anticipated permitting,public participation,and environmental concerns.Impacts to the existing line,including continuity of service,and disruption service costs will also be evaluated. PROPOSED SCOPE OF SERVICES .- TASK I PREPARATION OF DATABASE This task will gather available information required for the study.Information on parcels,.existing roadways,and the railroad corridor will be gathered and assembled to form a _ project base map and database.Also information on existing MEA facilities and easements,specifically the 115kV line will be determined from MEA system maps.It is expected that the Matanuska Susitna Borough (MSB)roadmaps will provide an overview of the properties.MSB tax maps will provide more detailed information on property ownership.Information on roadways and railroad right-of-way will be obtained from the Alaska Department of Transportation (DOT/PF)and the Alaska Railroad Corporation (ARRC). Work Included: 1.Gather property parcel information 2.Obtain Roadway information 3.Obtain ARRC corridor information 4.Assemble information into a base map Deliverables: 1.Base map TASK2 TYPICAL 230kV LINE DESIGN This task will develop a generalized basis of design for 230kV structures to be used during the evaluation.Right-of-Way widths based on estimated spans,conductor,and sag/tension data will also be calculated.General foundation soil conditions and Stoleeeae18eesBbamemerenesNavereeeAete8foundation design will also be used in determining impacts and cost estimates.However, the layout of the line and R-O-W width ultimately depends on the alignment.For example,if the alignment parallels the existing MEA 115kV line,the easement canprobablybereduced. Work Included: 1.Create generalized structure for independent R-O-W 2.Create generalized structure for joint use with existing MEA line 3.Generalize soil conditions and foundations 4.Estimate span lengths 5.Estimate Right-of-Way widths Deliverables: 1.Structure Sketches TASK3 PRELIMINARY ROUTE ALIGNMENT Utilizing information from the database and typical 230kV line design,a preliminary a group of alignments will be developed.The alignments will be presented to AEA &the IOC in the 30%alignment submittal for their review.These alignments will connect Teeland and Douglas Substation.Four general routes are expected: --Following the Existing 115kV MEA Line -Following road corridors -Following the Alaska Rail Road corridor -Cross Country Work Included: 1.Develop Initial Alignments Deliverables: 1.30%Route Submittal to AEA &IOC TASK 4 ROUTE ASSESSMENT Task 4 will involve gathering applicable information to be used in the evaluation process for the alignments identified in Task 3.Property ownership,parcel values,and required agency permits pertaining to each route will be obtained.Proximity to airports or parklands or other land use conflicts will be ascertained for each alignment. Work Included: 1.Develop Property ownership and parcel values for each alignment 2.Determine agency permits required for each alignment 3.Determine possible land use conflicts Tuesday May 6 Alaska Air Fit.#20,Leave Anch.9:55 AM,Arr.Dutch Harbor 12:01 PM Penair Fit.#4315,Leave Dutch Harbor 1:00 PM,Arr.Atka 2:00 PM Overnight in Atka,Penair Charter May 7 to Dutch Harbor,see below (Ed Weiss and Charles Mobley Leave Dutch Harbor May 7 Alaska Air Flt.#23 5:23 PM,arrive Anchorage 7:15 PM) Four Passengers: 1)Peter Crimp,AEA 2)Earle Ausman,Polar Consultants 3)Cindy Anderson,ADFG 4)Charles Mobley,Archeology Consultant Wednesday May 7 Security Aviation Charter,Leave Anchorage for Atka at 6:00 AM,Leave Atka for Nikolski 42:30 PM,Leave Nikolski 4:00 PM,Arr.Anchorage 8:00 PM Seven Passengers:Return Passengers: 1)Lenny Landis,AEA 1)Lenny Landis,AEA 2)Bryan Carey,AEA 2)Jeff Stanley,CRW 3)Dennis Meiners,AEA 3)Karl Hulse,CRW 4)Jeff Stanley,CRW 4)Tim Hall,EPS 5)Karl Hulse,CRW 5)Peter Crimp,AEA 6)Tim Hall,EPS '6)Earle Ausman,Polar Cons. 7)Gerald Hutterer,Geothermal Penair Charter,Leave Atka 2:00 PM,Arr.Dutch Harbor 4:00 PM (in order to make 5:30 PM flight to Akutan,and 5:23 PM Alaska Airlines flight to Anchorage) Five Passengers: 1)Dennis Meiners,AEA 2)Gerald Hutterer,Geothermal 3)Cindy Anderson,ADFG 4)Charles Mobley,Archeology Consultant 5)Bryan Carey Penair Flt#?Dutch Harbor to Akutan (see Bryan Carey and Dennis Meiners) ?___Passengers: 1)Bryan Carey,AEA 2)Dennis Meiners,AEA 3)Gerald Hutterer,Geothermal Deliverables: 1.None TASK5 ROUTE.REFINEMENTS Once the routes are established and preliminary information is gathered on each of them,the routes will be adjusted to increase their individual viability.Also it is expected a 5" route will be added to the group.This route will likely be a combination of the other routes with some slight adjustments.Again,the alignments will given to AEA &the IOC for review in the 70%Route Submittal. Work Included: 1.Refine individual routes based upon gathered information. 2.Develop combination route Deliverables: 1.Route Map 2.Parcel Database for each alignment 3.70%Route Submittal to AEA &IOC TASK 6 DISRUPTION PLAN If the new line follows the existing alignment or is rebuilt from the existing MEA 115kV line there will be disruptions to the system during construction.The other alignments may also impact the existing line with crossings.This task will evaluate possible disruptions and develop a preliminary plan to minimize impacts to the existing system. Work Included: 1.Determine outage durations 2.Develop a disruption plan to minimize impacts from the new line Deliverables: 1.Disruption plan and mitigation measures TASK 7 ROUTE COMPARISION CRITERIA Typically tangible criteria such as construction costs,easements costs and square footage, and parcel counts are used.However,intangible criteria such as visual impacts,public safety,and environmental issues can dramatically affect the viability of a new transmission line.This task will develop the criteria that will be used to evaluate the routes. Work Included: 1.Develop tangible criteria 2.Develop intangible criteria Deliverables: 1.Route comparison criteria TASK8&8 ROUTE COMPARISON Once the comparison criteria have been established,the individual routes will be evaluated.Each route will be compared and ranked based upon the criteria establish in Task 7. Work Included: 1.Gather criterion for each route Comparison for each route will contain: a.R-O-W and pemmnitting costs b.Construction costs c.Annual costs d.Other tangible criteria e.Intangible criteria 2.Compare and Rank Routes Deliverables: 1.None TASK9 DRAFT REPORTI A report will to be generated discussing the preliminary findings of the previous tasks along with a recommended route.This draft report will be available for review by AEA and other members of the Alaska Intertie Operating Committee. Work Included: 1.Generate initial draft report Deliverables: 1.Draft Report I (16 Copies) TASK 10 DRAFT REPORT II After receiving comments and suggestions on the first draft report for AEA,and updated draft report will be created.This draft report will be presented to AEA and other members of the Alaska Intertie Operating Committee for a second round of reviews. Work Included: . ' 2.Generate second draft report Deliverables: 2.Draft Report II (16 Copies) TASK II]#INAL REPORT _- 4EA ard merabers of the IOC will review the draft reports.Comments and suggestionswil!icorrarated in the final report. Work Included: 1.Update and finalize report Deliverables: 1.-Final report (31 Copies +Electronic on CD) 4ASK 3°ARCHIVING DOCUMENTS 'Vorocghoat the project,information gathered by D&L along with its sub consultants will 2 organ:d for archiving.All meeting notes,phones messages,e-mails,internal inemsrand:ms,drafts,and other documentation relating to the study will organized necnapiially to ensure all information gathered is available for public use. Werk Included: 1.Sequentially organize information obtained throughout the project Dehverables: 1.Archive Documents CLARIFICATIONS The study will produce a recommended alternative for the existing 115kV MEA line ataieasibilityeval.This will not be a final design effort or identify every problem associatedwithrowtnAgackLu:vling a mew transmission line.It will produce an overallined recommended route based upon available information.It should be anticipated that modifications to this preliminary routing would be necessary when the final routing process is undertaken. The ability to parallel existing MEA lines and overlap easements dependson the."assessment of legal-property rights.Itis expected the State of Alaska will provide thenecessarylegalsupport. The majority of parcel information and existing facilities will be obtained from MSB, DOT/PF,and MEA.It is assumed this information will be readily available for our use. Members of the IOC will likely review and make suggestions on the draft reports and other submittals.D&Lis concerned about receiving conflicting comments fromindividualIOCmembers. The availability of personal from D&L has changed slightly.Greg Huffman's availability this spring is limited.Paul Williams will be added to the team to ensure available manpower for the prcject is maintained.Personnel from sub-consultants,including Land Field Services,Travis/Peterson Environmental Consulting,and Hattenburg,Dilley & Linnell,remain unchanged. SCHEDULE The final report should be completed by late summer of 2003.Efforts will be made to complete the study by July 2003 as AEA requested.However,it is expected that that AEA is flexible with the delivery of the final report;we are currently estimating the study to be completed in September 2003.An estimated schedule of milestones is attached. FEE PROPOSAL Based on the above Scope of Services,we propose a time and material contract with a budget-estimated total.Budget estimate for Tasks 1 throug 10is $172,000.Actual costs'and schedule of this effort are dependent on the amount of work performed and the reviews by AEA and the IOC.Protracted reviews or comments will effect both the time;and cost of the Project. Robert C Drake From:Henri F.Dale [hfdale@gvea.COM] Sent:Tuesday,March 25,2003 8:19 PM To:'John Cooley';'Dora Gropp';DStead@HomerElectric.com;redrake@matanuska.com Ce:'Brian Hickey';'Lee Thibert';JSchroeder@HomerElectric.comSubject:RE:Alaska Intertie Upgrade Study,D&L proposal Looks ok to me.I don't have a problem with being flexible (time-wise)but is there a reason D&L reserved the right to double the alloted time to completion.One of our concerns were that their plate was full with other projects.Has the scope of work increased or are our concerns being realized?Henri woenn Original Message----- From:John Cooley [mailto:John_Cooley@chugachelectric.com] Sent:Friday,March 21,2003 3:33 PM To:Dora Gropp;hfdale@gvea.com;DStead@HomerElectric.com;rcdrake@matanuska.com Cec:Brian Hickey;Lee Thibert;JSchroeder@HomerElectric.com Subject:Fwd:Alaska Intertie Upgrade Study,D&L proposal I am forwarding AEA's proposal for your review.Please note that AEA would like any comments by Tuesday evening.Thanks.IOC Chairman John S.Cooley,PE Manager,Power Control &Fuel Mgmt. Chugach Electric Association,Inc. Robert C Drake From:Dora Gropp [Dora_Gropp@chugachelectric.com] Sent:Friday,March 21,2003 4:44 PM To:John Cooley;hfdale@gvea.com;DStead@HomerElectric.com;redrake@matanuska.com Cc:Brian Hickey;Lee Thibert;JSchroeder@HomerElectric.com Subject:Re:Fwd:Alaska Intertie Upgrade Study,D&L proposal Looks basically ok to me. AEA may want to emphasize the importance of agreed upon evaluation criteria and unbiasedapplication.This study will have to be used for permitting and ROW acquisitionand needstoclearlysupporttheselectedorrecommendedroute.Will anybody determine whether an EA or EIS have to be prepared?This study could investigate 'that. >>>John Cooley 03/21/03 03:33PM >>> I am forwarding AEA's proposal for your review.Please note that AEA would like any comments by Tuesday evening.Thanks.IOC Chairman John S.Cooley,PE Manager,Power Control &Fuel Mgmt. Chugach Electric Association,Inc. Present: Art Copoulos Henri Dale Bob Day Bob Drake Doug Hall Brian Hickey Bob Price Ed Ruebling ALASKA INTERTIE OPERATING COMMITTEE \SsMEETINGMINUTES THURSDAY,JANUARY 16,2003 (MUNICIPAL LIGHT &POWER ENGINEERING CONFERENCE ROOM) Alaska Energy Authority Golden Valley Electric Association Anchorage Municipal Light &Power Matanuska Electric Association Anchorage Municipal Light &Power Chugach Electric Association Anchorage Municipal Light &Power Anchorage Municipal Light &Power Henri Dale called the meeting to order at 10:11 a.m. I. II. HIT. ADOPTION OF PRIOR MEETING MINUTES Minutes for the October 10,2002 meeting were adopted with changes to Section VI, item H. APPROVAL/MODIFICATION OF AGENDA The following agenda items were adopted:Teeland-Douglas;12-22 Outage;Under build;Quarterly Reliability Report;and Spins. COMMITTEE CORRESPONDENCE AND REPORTS A.Dispatch Subcommittee Doug Hall provided the following comments.As a result of the September 7 outage,the question as to what constitutes a muti-part outage arose.Doug suggested that guidelines or a process be created to aid in defining outages these types of outages. Reliability /Protection Subcommittee No report. Machine Rating Subcommittee Bob Day reported the subcommittee met in November,2002 and that GE will investigate the affect that the Aero Derivative H constant will have on the interconnected system. SCADA/Metering/Communications Subcommittee No report. Maintenance Subcommittee No report. Budget Subcommittee No report. Upgrade/Extension Subcommittee Art Copoulos reported that he received responses from Power Engineers, Alaska Anvil,and Dryden &LaRue to the RFP and requested committee members to participant in the selection committee.CEA,ML&P,and GVEA volunteered to provide a representative for the selection committee. IV Participants should contact Karl Reiche (AEA)at 269-3717 for further details. Art will provide a copy of the proposal to participants. Intertie Status Report No report.However the following comments were provided: (1)Lost CT connection in Healy,the intertie was taken out and the CT wiring fixed. (2)Southern Intertie -Teeland SVS is acting up.There is an intermittent control card problem.Art stated that a replacement card study is being conducted and will be completed prior to February 14,2002. (3)Lost CT circuit at Gold Hill SVS.Suspect ice in the cable trays.Is working now and will be permanently fixed next summer. Communications Received MEA sent a letter to the participants requesting non-objection to their attaching to an intertie pole near Sunset dr. VISITOR'S COMMENTS RELATED TO ITEMS ON AGENDA Bob Day introduced Ed Ruebling to committee members.Ed is the new Generation Manager at ML&P.Ed's mechanical engineering experience includes working with Conoco Phillips Alpine,Trans-Alaska Pipeline,Engineering Alliance &British Petroleum,North Slope Projects,General Electric Power Generation and McDonnell Douglas Aircraft Company. RECESS Recess was deferred-went right into work session. WORK SESSION A.Snow Load Monitor Problem:The inclinometers don't reliably predict snow load imbalance. However,potential problems can be identified.The load cells work OK. Discussion included the need to fund construction to fix the problem permanently. Upgrade /Extension of Intertie to Teeland Upgrade of Teeland to Hollywood Road -There was discussion of under build clearance (meeting codes)issue between Sunset Ave to Hollywood. Members agreed that if the under build meets applicable code,and is not in the banned area,they may attach the under build.Art is to verify that it is not in the banned area. Dispatch Subcommittee There is a voltage support problem on the south end of the Southern Intertie which may be a cause for concern in the near future. Reliability/Protection Subcommittee The relay design upgrade study by EPS for Teeland/Douglas should be submitted to the utilities soon. Machine Rating Subcommittee The technician's test for the BESS system should be completed by late spring/early summer.Batteries are currently being installed. VIL. SCADA/Metering/Communications Subcommittee They have met,and are investigating discrepancies between their metering and the GEM meters that are installed down there. Maintenance Subcommittee No discussion. Budget Subcommittee The first sentence of October's minutes is amended to read:"AIDEA will investigate and report on how they (not necessarily AIDEA)might be able to fund capital improvements to the Intertie.” Outage Reporting Bob Day briefed the 12/22 outage and provided members a copy of the outage analysis. System Operation It was noted that MEA is currently running with the 115 kV loop closed. FORMAL OPERATING COMMITTEE ACTIONS/RECOMMENDATIONS A.Upgrade of Teeland Line to Hollywood Road Art Copoulos stated that he would like to move forward with the MEA under build proposal regarding if the line was in the "banned area”and members agreed with this action. Quarterly Reliability Report (QRR) Bob Day provided a copy of the QRR to the committee members.He stressed the importance of timely data entry for this report. Spins Bob Day recommended that the proposal to change the Spins allocation formula be presented to the General Managers.Members agreed to present this issue individually to each General Manager. Upgrade/Extension Subcommittee CEA,ML&P,and GVEA agreed to provide a representative for the RFP selection committee.Art asked that participants contact Karl Reiche (AEA)at 269-3017 for further details regarding the selection committee.Art will provide copies of the proposal to participants. Southern Intertie (SI)Tower Repair Art made a recommendation for a cost-savings proposal to repair the broken pilings at towers 274 and 279.His proposal is to contract with PAR construction to repair the foundations since their equipment is already in place for the Northern Intertie project.A "Time &Material”contract could be used at a cost of approximately 300K.Members support this proposal.Henri Dale will coordinate with the Maintenance Subcommittee and investigate funds since there are no funds available in the budget for this item.Once the ) coordination is completed,Henri will arrange a teleconference to brief committee members. VIII.SUBCOMMITTEE ASSIGNMENTS No Subcommittee assignments. IX.DETERMINE AGENDA FOR NEXT MEETING The next meeting was set for April 17,2003,at GVEA starting at 10:00 a.m. ADJOURNMENT Bob Day moved to adjourn.Doug Hall seconded the motion.Meeting adjourned at 12:06 p.m. BY: Henri Dale,Vice-Chairman [=| To The 1OC Dispatch Subcommittee Committee Sequence of Events during Eklutna Plant Islanding and outage Dec. 22,2002 The following data was compiled using SCADA and Woodward Intellusions terminal data and the Dispatchers logbook. Prior to Disturbance,both units on line,project output is 24 mw's. 10:08:23 10:08:36 10:08:28 10:08:30 10:11:24 10:20:59 10:21 10:30:20 10:33:07 10:33:08 10:33:08 10:40 10:47 11:02 11:12:22 11:39:24 11:35:05 11:40 11:42 11:44 11:55 11:59 12:04 12:05 12:07 12:26 12:27 12:36:55 17:03:20 17:50:44 Plant 2 Breakers 21 and 22 trip.Eklutna is islanded Pippel Transformers #1 and #2 trip,Dow Subs'3 breakers trip, leaving apx 7.5 mw's of load on running units. Eklutna Generator 1 motoring,Generator 2 load at 9MW Eklutna Generator 1 Exciter Over voltage Alarm Dispatch tries to close Breaker 21 -Systems are out of sync -No Close Generator 1 Shutdown by Dispatch Dispatch log indicates unable to communicate with Eklutna -Reports attempts to operate 362 and 462 did not work.Data does not verify this. MEA opens 1271 at Briggs Generator 2 less than 95%speed Alarm MEA closes MB100 at Briggs,trips. Generator 2 Transformer Differential Relay trips Unit on A and C phases. Eklutna is now in the black.Plant Breakers 362 and 462 trip due to Transformer Diff.Relay operation. Closed Bkr 21,charging line to open Briggs 1271 test ok. MEA closes ML100 Opened Bkr 21 at Plant 2. Attempted to energize plant via Bkr 362 unsuccessful. Disconnect 261 is open and attempt to energize plant bus using Bkr 362. Generator 1Transformer Differential trip on B phase.Bkr 362 is tripped. Plant is still in the black. Disconnect 161 is open.Bkr 362 closed via SCADA OK.Eklutna is still in the black due to disconnect switches 161 and 261 being open. MEA opens Pippel 561. MEA closes Briggs 1271. ML&P closes Bkr 21 at Plant 2. ML&P closes Bkr 362. MEA opens Parks 871. MEA closes Pippel 561. MEA closes Parks 871. ML&P closes Bkr 462. MEA opens MB101 at Johnson Sub. MEA closes MB100 at Briggs Tap. Generator Turbine Oil Pressure Alarm.The DC oil pump has failed. Disconnects 161 and 261 are closed.Breakers 362 and 462 are closed Eklutna has lights. Generator 2 On Line "ae Plant Summary: Analysis shows that the Plant experienced Transformer Differential relay trips on both Generators 1 and 2.Also the DC oil pump on Generator 2 failed following 2 hours of operation.Due to the lack of station service power the sumps filled up and overflowed on to the 1"level floor for about 1 hour.This left an oil scum over approximately 50%of the floor.The plant remained on the station battery and the UPS ran continuously on battery power for 6.5 hours.This successfully ran the SCADA RTU,Woodward Gear and some emergency lighting. Repair Actions: 1.Testing of the Transformer Differential relays determined that the B phase relay on Generator 1 transformer developed a restraint problem and was malfunctioning.Generator 2 Differential relays checked out as good.The restraint problem noted on Generator 1 relay could only be detected when energizing the unit transformer.The relay was replaced with an existing spare following testing. 2.The DC Oil Pump was replaced with the plant spare and the defective pump is in for repair. Plant Recommendations: 1.This is the second failure of these relays.These relays have been in continuous operation since 1987.I recommend the EOC fund replacements. 2.The need for an emergency generator was very obvious with this outage.The sumps would not have overflowed and the plant lighting and support equipment would have been in operation throughout this time. 3.That should Eklutna become isolated in the future it would be the best to shut down Eklutna generation via SCADA control and begin system restoration as needed.The Eklutna generators can be restarted and synchronized as needed.Any load that Eklutna is carrying will have to be dropped in order to restore the power system. 4.If Eklutna is islanded and Recommendation 3 is not appropriate,remove Eklutna from Dunstan AGC control.Some of the problems that the dispatchers were experiencing were due in part to the Dunstan AGC system attempting to maintain its existing schedule. Michael Dillon ML&P Hydro Superintendent A meeting was held at ML&P on December 26,2002 between ML&P staff and MEA representatives Wayne Carmony,Bob Drake and Ray Morgan to go over the sequence of events and determine what can we do to improve restoration efforts during these situations.The plant relays were a problem waiting for the correct situation to manifest themselves.The other set of relays have been checked.A was reminded that this outage occurred because the switch at Lucas was opened |na restoration will always be delayed because of that.They were advised that we do not test the line from the Plant 2 side because of the potential damage to ML&P's turbines from a close-in fault.With the switch open,the Eklutna units must be shut down and Bkr 362 opened sothatM 10 can be closed.The Eklutna units m__.then be restarted and only then can restoration of the line commence. MEA stated that they plan on opening the switch at Lucas in a couple of days.They notified Bob Day by email later that day that they would be leaving the ML100 switch closed for the time being.As of 1/14/03 the switch is still closed. Doug Hall Chief Power Dispatcher,ML&P Cc:Dale,GVEA Jenkin,CEA Stead,HEA Willis,MEA Cooley,CEA ALASKA INTERTIE OPERATING COMMITTEE MEETING AGENDA THURSDAY,OCTOBER 10,2002 BEGIN AT 10:00 A.M. I.Adoption of prior meeting minutes Il.Approval/Modification of agenda III.Committee reports and correspondence Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee "7/5” SCADA/Metering/Communications Subcommittee Maintenance Subcommittee Budget Subcommittee Upgrade/Extension Subcommittee Intertie Status Report Communications Received IV.Visitor's Comments Related to Items on Agenda V.Recess,if needed VI.Work Session Snow Load Monitor Presentation -Del LaRue Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee Budget Subcommittee Outage Reporting Upgrade/Extension of Intertie to Teelan >oOVII.Formal Operating Committee Actions/Recorame dations System Opera ie A.Revised snow load alarm procedure VIII.Subcommittee Assignments Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee F.Budget Subcommittee IX.Determine Agenda for Next Meeting to be hosted by ML&P in January X.AdjournmentSOMMOOW>x "TAMMOOD>mMOOW>Meeting Location:Chugach Electric Assoc,.Inc. Engineering Conference Room 5601 Minnesota Drive Anchorage,Alaska 99519 Nee DRAFT LS | ALASKA INTERTIE OPERATING COMMITTEE MEETING MINUTES THURSDAY,OCTOBER 10,2002 (CHUGACH ELECTRIC ASSN -ENGINEERING CONF.ROOM) Present: John Cooley Art Copoulos Henri Dale Bob Day Bob Drake Dora Gropp Doug Hall Karl Reiche Chugach Electric Association - Alaska Energy Authority Golden Valley Electric Association Anchorage Municipal Light &Power Matanuska Electric Association (proxy for AEG&T) Chugach Electric Association Anchorage Municipal Light &Power Alaska Energy Authority The meeting was called to order at 10:05 A.M. I ADOPTION OF PRIOR MEETING MINUTES Minutes for the July 25,2002 meeting could not be located. II APPROVAL/MODIFICATION OF AGENDA The agenda was adopted with the addition of VI.J System Operation 08 COMMITTEE CORRESPONDENCE AND REPORTS A. a Teelanel-douglas b,12-22,B. C.Uvds2 Buip C. d.ON.fe\Rep e. Ss. Dispatch Subcommittee | The subcommittee had met and reported on the September 7 outage,MEA breaking the 115 kV loop and line patrols after faults. Reliability/Protection Subcommittee No report. Machine Rating Subcommittee The subcommittee had met at Snettesham on 9/5 and reported that the group had questions about the effect of the lower inertia (H constant)for aero derivatives as compared to frame units.They also presented a letter requesting system modeling be done before installing aero derivative turbines. SCADA/Metering/Communications Subcommittee No report Maintenance Subcommittee No report,subcommittee is scheduled to meet on October 22. Budget Subcommittee No report but a budget status report was distributed earlier in the week. Upgrade/Extension Subcommittee Subcommittee report was delayed until work session. Intertie Status Report Page 1 of 4 All equipment is in service and no problems were reported.It was mentioned that an April report by the Relay/Protection Subcommittee erroneously stated that the transfer trip relaying between Douglas and Teeland was irreparable.The location of Douglas Substation as build drawing prepared by EPS was questioned. Communications Received AEIDEA/AEA sent the IOCa letter outlining their proposed course of action with respect to the SB2006 Appropriation. IV VISITOR'S COMMENTS RELATED TO ITEMS ON AGENDA No visitors were present. Vv RECESS Recess was deferred -went right into work session. VI WORK SESSION A.Snow Load Monitor Presentation Del LaRue made a presentation on the status of the snow load monitoring system.The system is functioning reasonably well and he recommended that ML&P take charge and use the system this winter season.Snow machine patrols will be done this year. A discussion followed about the merits of fixing the problem as compared to monitoring the problem. Upgrade/Extension of Intertie to Teeland Dora Gropp presented the subcommittee's report with recommended priorities for utilizing the legislative appropriation.The recommended priorities are:1)replace the controls for the SVCs;2)construct a new transmission line between Hollywood Road and Douglas Substation;3) modify the conductor attachments between Douglas Substation and the Susitna River crossing;and,4)upgrade the Teeland to Hollywood Road line section to 230 kV. (Committee took a short break from 11:45 A.M.to 12:15 P.M.Lunch was provided) C.Dispatch Subcommittee The subcommittee requested a policy on whether or not to patrol a line after a fault and suggested that the maintenance subcommittee could help formulate one. Reliability/Protection Subcommittee GVEA reported that they are ordering a rate of change UF relay to be installed at either Healy or Douglas to isolate MEA loads upon loss of the Teeland-Point MacKenzie 230 kV line.They will work with the group prior to installation. Machine Rating Subcommittee The H constant for aero derivative turbines was reported to be 0.75 or about 1/10 of existing Railbelt turbines.GVEA reported that they would make a BESS presentation once they have the modeling details of the installation. Page 2 of 4 VI Vil SCADA/Metering/Communications Subcommittee No discussion. Maintenance Subcommittee Requested that the subcommittee reaffirm the need to patrol a line after faults. Budget Subcommittee AIDEA will investigate and report on how they might be able to fund capital improvements to the Intertie.Subcommittee members are to discuss capital spending with their respective utility organizations. Outage Reporting The Intertie outage website is active and members were reminded that they need to enter data after each disturbance.Zero data entries (negative reports)are required to insure that the report is complete.ML&P has the responsibility to assign passwords for access.Some discussion was held on whether future events such as September 7 should be reported as a single or multiple disturbances. System Operation Operation with the Teeland to Eklutna 115 kV line open was discussed. MEA reported that they intended to remove their transmission line from the Intertie (between Hollywood Road and Douglas)upon the expiration of their contract with APA in 2004.Bob Drake reported that he thought there was a study that Luke Sliman had done that indicated that a bus fault at Shaw Substation could cause a system blackout.He suggested that a review of relay philosophy and settings would be beneficial and might help MEA decide to operate their system in a different manner.GVEA's use of rate of change UF relays was discussed. FORMAL OPERATING COMMITTEE ACTIONS /RECOMMENDADTIONS 02-08 Motion to Accept Report from Technical Subcommittee and Submit as the IOC Recommendation to AEA. Bob Day moved to accept the above motion,which was seconded by Henri Dale. The motion was passed with AEG&T abstaining. 02-09 Motion for the IOC to concur with the approach taken by AIDEA/AEA in their letter of September 18,2002. Art Copoulos moved to accept the above motion,which was seconded by Bob Day.The motion was passed unanimously. SUBCOMMITTEE ASSIGNMENTS A. B. C. Dispatch Subcommittee Propose methodology for reporting multi event disturbances. Reliability/Protection Subcommittee Review protection for open loop configuration between Teeland and Eklutna taking into account ASCC SAC input/questions. Machine Ratings Subcommittee Pursue H constant question.Request ASCC SAC to compare the system response with aero derivatives substituted for some frame turbines. Page 3 of 4 IX D.SCADA/Metering/Communications subcommittee Meet and resolve previous assignment. E.Maintenance Subcommittee Review practice and recommend policy for patrols following line faults. F.Budget Subcommittee AIDEA to review loan possibilities and utilities to consider capital funding mechanisms. DETERMINE AGENDA FOR NEXT MEETING The next meeting was set for January 16,2003 at ML&P starting at 10:00 A.M. ADJOURNMENT Bob Day moved to adjourn.Henri Dale seconded the motion.Meeting was adjourned at 1:28 P.M. Page 4 of 4 DRAFT IS- ALASKA INTERTIE OPERATING COMMITTEE MEETING MINUTES THURSDAY,OCTOBER 10,2002 (CHUGACH ELECTRIC ASSN -ENGINEERING CONF.ROOM) Present: John Cooley Chugach Electric Association Art Copoulos Alaska Energy Authority Henri Dale Golden Valley Electric Association Bob Day Anchorage Municipal Light &Power Bob Drake Matanuska Electric Association (proxy for AEG&T) Dora Gropp Chugach Electric Association Doug Hall Anchorage Municipal Light &Power Karl Reiche Alaska Energy Authority The meeting was called to order at 10:05 A.M. I ADOPTION OF PRIOR MEETING MINUTES Minutes for the July 25,2002 meeting could not be located. I APPROVAL/MODIFICATION OF AGENDA The agenda was adopted with the addition of VI.J System Operation I COMMITTEE CORRESPONDENCE AND REPORTS A.Dispatch Subcommittee The subcommittee had met and reported on the September 7 outage,MEA breaking the 115 kV loop and line patrols after faults. B.Reliability/Protection Subcommittee No report. C.Machine Rating Subcommittee The subcommittee had met at Snettesham on 9/5 and reported that the group had questions about the effect of the lower inertia (H constant)for aero derivatives as compared to frame units.They also presented a letter requesting system modeling be done before installing aero derivative turbines. D.SCADA/Metering/Communications Subcommittee No report E.Maintenance Subcommittee No report,subcommittee is scheduled to meet on October 22. F,Budget Subcommittee No report but a budget status report was distributed earlierin the week.G.Upgrade/Extension Subcommittee Subcommittee report was delayed until work session. H.Intertie Status Report Page 1 of 4 All equipment is in service and no problems were reported.It was mentioned that an April report by the Relay/Protection Subcommittee erroneously stated that the transfer trip relaying between Douglas and Teeland was irreparable.The location of Douglas Substation as build drawing prepared by EPS was questioned. Communications Received AEIDEA/AEA sent the IOCa letter outlining their proposed course of action with respect to the SB2006 Appropriation. IV VISITOR'S COMMENTS RELATED TO ITEMS ON AGENDA No visitors were present. Vv RECESS Recess was deferred -went right into work session. VI WORK SESSION A.Snow Load Monitor Presentation Del LaRue made a presentation on the status of the snow load monitoring system.The system is functioning reasonably well and he recommended that ML&P take charge and use the system this winter season.Snow machine patrols will be done this year. A discussion followed about the merits of fixing the problem as compared to monitoring the problem. Upgrade/Extension of Intertie to Teeland Dora Gropp presented the subcommittee's report with recommended priorities for utilizing the legislative appropriation.The recommended priorities are:1)replace the controls for the SVCs;2)construct a new transmission line between Hollywood Road and Douglas Substation;3) modify the conductor attachments between Douglas Substation and the Susitna River crossing;and,4)upgrade the Teeland to Hollywood Road line section to 230 kV. (Committee took a short break from 11:45 A.M.to 12:15 P.M.Lunch was provided) C.Dispatch Subcommittee The subcommittee requested a policy on whether or not to patrol a line after a fault and suggested that the maintenance subcommittee could help formulate one. Reliability/Protection Subcommittee GVEA reported that they are ordering a rate of change UF relay to be installed at either Healy or Douglas to isolate MEA loads upon loss of the Teeland-Point MacKenzie 230 kV line.They will work with the group prior to installation. Machine Rating Subcommittee The H constant for aero derivative turbines was reported to be 0.75 or about 1/10 of existing Railbelt turbines.GVEA reported that they would make a BESS presentation once they have the modeling details of the installation. Page 2 of 4 vil Vill F.SCADA/Metering/Communications Subcommittee No discussion. G.Maintenance Subcommitteequestedthatthesubcommittee reaffirm the need to patrol a line after)rD 5)r3)faults.q leanH.Budget Subcommittee anh iF CIEAPO oor whe,AIDEA will investigate and report on how they might be able to'fund-eardaygcapitalimprovementstotheIntertie.Subcommittee members are to discuss capital spending with their respective utility organizations. I.Outage Reporting The Intertie outage website is active and members were reminded that they need to enter data after each disturbance.Zero data entries (negative reports)are required to insure that the report is complete.ML&P has the responsibility to assign passwords for access.Some discussion was held on whether future events such as September 7 should be reported as a single or multiple disturbances. J.System Operation Operation with the Teeland to Eklutna 115 kV line open was discussed. MEA reported that they intended to remove their transmission line from the Intertie (between Hollywood Road and Douglas)upon the expiration of their contract with APA in 2004.Bob Drake reported that he thought there was a study that Luke Sliman had done that indicated that a bus fault at Shaw Substation could cause a system blackout.He suggested that a review of relay philosophy and settings would be beneficial and might help MEA decide to operate their system in a different manner.GVEA's use of rate of change UF relays was discussed. FORMAL OPERATING COMMITTEE ACTIONS /RECOMMENDADTIONS 02-08 Motion to Accept Report from Technical Subcommittee and Submit as the IOC Recommendation to AEA. Bob Day moved to accept the above motion,which was seconded by Henri Dale. The motion was passed with AEG&T abstaining. 02-09 Motion for the IOC to concur with the approach taken by AIDEA/AEA in their letter of September 18,2002. Art Copoulos moved to accept the above motion,which was seconded by Bob Day.The motion was passed unanimously. SUBCOMMITTEE ASSIGNMENTS A.Dispatch Subcommittee Propose methodology for reporting multi event disturbances. B.Reliability/Protection Subcommittee Review protection for open loop configuration between Teeland and Eklutna taking into account ASCC SAC input/questions. C.Machine Ratings Subcommittee Pursue H constant question.Request ASCC SAC to compare the system response with aero derivatives substituted for some frame turbines. Page 3 of 4 IX D.SCADA/Metering/Communications subcommittee Meet and resolve previous assignment. E.Maintenance Subcommittee Review practice and recommend policy for patrols following line faults. F.Budget Subcommittee AIDEA to review loan possibilities and utilities to consider capital funding mechanisms. DETERMINE AGENDA FOR NEXT MEETING The next meeting was set for January 16,2003 at ML&P starting at 10:00 A.M. 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' . : i ees -c- wre ree eteral --wee + a eemesmrer: Ghreveern a hd - :ege -ama Staaten addF cmtesidanmael Scmemcame alii paninieemenisaneetl a Sccetteatedinl Mitcensteneemmadl a = : _ ions TZ y > » . : : e ' . . ran-RER E MER sate -_usbdb &AEKS-Reapmaib(lly2 |ComALp AD wW)/apprsoch - a Cues v3 5VA4 nes 6 feedZwartwatfo)0 hag ax\Ee.--=asCe)Not __goun to Eencililzy StofyQsEDAneady$0 vnagh bal .J vw Cass Mase Roroud |Line.Paka dsSan hos:.-eine ALASKA INTERTIE OPERATING COMMITTEE MEETING AGENDA THURSDAY,JULY 25,2002 BEGIN AT 10:00 A.M. I.Adoption of prior meeting minutes II].Approval/Modification of agenda III.Committee reports and correspondence Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee Budget Subcommittee -ey Intertie Status Report Communications Received IV.Visitor's Comments Related to Items on Agenda V.Recess,if needed VI.Work Session Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee Budget Subcommittee Outage Reporting&.«Spinning Reserve bie amaStateGranttoextendIntertietoTeel VII.Formal Operating Committee Actions/Recommendations A.Approval of FY03 budget B.Approval of FY03 MITCR C.ML&P Spinning Reserve Proposal D.Intertie Extension VIN.Subcommittee Assignments Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee .Budget Subcommittee IX.Determine Agenda for Next Meeting to be hosted by Chugach in October X.Adjournment [October GP Meeting Location:Homer Electric Association,Inc. 3977 Lake Street |O Homer,Alaska 99603COMO>TrlomsoowpMOUOWpSLes 'ore Art Copoulos From:Don Stead [dstead@homerelectric.com]Sent:Monday,July 22,2002 12:09 PM To:John Cooley;ACopoulos@aidea.org;hfdale@gvea.com;rcdrake@matanuska.com Cc:Brian Hickey;Ed Jenkin;Luke Sliman;Steve Gilbert;HallDW@ci.anchorage.ak.us;JSchroeder@homerelectric.com Subject:Re:ALASKA INTERTIE OPERATING COMMITTEE Just areminder.The meeting will be at Lands End in Homer.Same time and everything just different location. -----Original Message ----- From:"John Cooley"<John_Cooley@chugachelectric.com> To:<ACopoulos@aidea.org>;"John Cooley”<John_Cooley@chugachelectric.com>; <hfdale@gvea.com>;<DStead@HomerElectric.com>;<rcdrake@matanuska.com> Cc:"Brian Hickey"<Brian_Hickey@chugachelectric.com>;"Ed Jenkin" <Ed_Jenkin@chugachelectric.com>;"Luke Sliman" <Luke_Sliman@chugachelectric.com>;"Steve Gilbert" <Steve_Gilbert@chugachelectric.com>;<HallDW@ci.anchorage.ak.us>; <JSchroeder@HomerElectric.com> Sent:Monday,July 22,2002 11:34 AM Subject:ALASKA INTERTIE OPERATING COMMITTEE >Proposed agenda for Thursday.See you in Homer! > >John S.Cooley,PE >Manager,Power Control &Fuel Mgmt. >Chugach Electric Association,Inc. > > DRAFT >| ALASKA INTERTIE OPERATING COMMITTEE MEETING MINUTES THURSDAY,JULY 25,2002 (HOMER ELECTRIC ASSN -LANDS END CONF.ROOM) Present: John Cooley Chugach Electric Association E P.SsArtCopoulosAlaskaEnergyAuthoritydakeHenriDaleGoldenValleyElectricAssociationFou Bob Day Anchorage Municipal Light &Power bu PtBobDrakeMatanuskaElectricAssociation(proxy for AEG&T)-underbur Doug Hall Anchorage Municipal Light &Power ae)¢learBrianHickeyChugachElectricAssociation(via teleconference)[|-RO . Bob Price Anchorage Municipal Light &Power _N ae)Don Stead Homer Electric Association (proxy for AEG&T) The meeting was called to order at 10:15 A.M. I II Ill ADOPTION OF PRIOR MEETING MINUTES April 18,2002 meeting minutes were approved as submitted. APPROVAL/MODIFICATION OF AGENDA The agenda was adopted. COMMITTEE CORRESPONDENCE AND REPORTS A.Dispatch Subcommittee The subcommittee had met three times and reported on the deliberations regarding spin allocations.The subcommittee reported that the spin proposal by ML&P was technically implementable but the subcommittee was unable to recommend implementation. B.Reliability/Protection Subcommittee No report. Cc.Machine Rating Subcommittee The subcommittee had met at ML&P Plant 2 and reported that they had requested that GVEA provide a report on the effect of the BESS on the system and other unit governors.. D.SCADA/Metering/Communications Subcommittee No report E.Maintenance Subcommittee The subcommittee received a $35,000 estimate for a study by EPS to develop a plan for SVC continuance. F,Budget Subcommittee The subcommittee recommended a budget,MITCR and rates for the year. The previous year ended with a $86,000 surplus although not all invoices were in yet. Page 1 of 3 G.Intertie Status Report AEA reported that the settlement agreement on the MEA lawsuit had been signed. H.Communications Received None was received. IV VISITOR'S COMMENTS RELATED TO ITEMS ON AGENDA No visitors were present. V RECESS Recess was deferred -went right into work session. VI WORK SESSION A.Dispatch Subcommittee The relaying between Douglas and Teeland Substations was discussed. The subcommittee is working on resolving the meaning of SVS alarms. B.Reliability/Protection Subcommittee No discussion Cc.Machine Rating Subcommittee No discussion D.SCADA/Metering/Communications Subcommittee Time permitting the subcommittee should discuss data interchange among utilities.Communication channel requirements and meter calibration at Douglas needs review. E.Maintenance Subcommittee Decided to wait 30 days or so for the EPS SVS study. F.Budget Subcommittee Recommended that the IOC adopt the budget,MITCR and rates developed by the subcommittee. G.Outage Reporting ML&P reported that the web based reporting system would soon be operational. H.Spin Resolution ML&P spin resolution was discussed. I.State Grant SB 2006 appropriation was discussed.A recommendation to AEA was developed.A subcommittee was assigned to develop recommended priorities of technically feasible options to satisfy the appropriation.Dora Gropp was designated chairman.Committee members are: Dora Gropp and Luke Sliman,Chugach Doug Ritter,Golden Valley Larry Hembree and Allen Mitchell,ML&P Ray Morgan and Bob Drake,Matanuska Mike Yerkes,Homer Karl Reiche,AEA VII FORMAL OPERATING COMMITTEE ACTIONS /RECOMMENDADTIONS 02-04 Motion to Approve a Budget of $1.7 million for FY 03 as recommended by the Budget Subcommittee. Page 2 of 3 VIII IX Bob Day moved to accept the above motion,which was seconded by Bob Drake. The motion was passed unanimously. 02-05 Motion to Approve MITCR recommended by the Budget Subcommittee. Henri Dale moved to accept the above motion,which was seconded by Bob Day. The motion was passed unanimously. 02-06 Motion to Adopt the Resolution for a 40/40/20 Spinning Reserve Allocation Methodology as proposed by ML&P and forwarded by the Dispatch Subcommittee. Bob Day moved to accept the above motion,which was seconded by Henri Dale. The motion failed with GVEA and ML&P voting YEA and AEG&T and Chugach voting NEA. 02-07 Motion to Adopt the Resolution proposing Anchorage-Fairbanks Intertie Upgrade/Extension Design and Construction Management Plan as developed during work session. Henri Dale moved to accept the above motion,which was seconded by Art Copoulos.The motion was passed unanimously. SUBCOMMITTEE ASSIGNMENTS Dispatch Subcommittee Continue work to resolve SVS alarms. Reliability/Protection Subcommittee No additional assignment. Machine Ratings Subcommittee No additional assignment. SCADA/Metering/Communications subcommittee Review communication circuit list and metering accuracy at Douglas. Maintenance Subcommittee No additional assignment. F.Budget Subcommittee No additional assignment.aoAaBPPpDETERMINE AGENDA FOR NEXT MEETING The next meeting was set for October 10,2002 at Chugach starting at 10:00 A.M. ADJOURNMENT The meeting was adjourned. Page 3 of 3 .DRAFT s-| ALASKA INTERTIE OPERATING COMMITTEE SoMEETINGMINUTES, THURSDAY,JULY 25,2002 ot(HOMER ELECTRIC ASSN -LANDS END CONF.ROOM) Present: John Cooley Chugach Electric Association Art Copoulos Alaska Energy Authority Henri Dale Golden Valley Electric Association Bob Day Anchorage Municipal Light &Power Bob Drake Matanuska Electric Association (proxy for AEG&T) Doug Hall Anchorage Municipal Light &Power Brian Hickey Chugach Electric Association (via teleconference) Bob Price Anchorage Municipal Light &Power Don Stead Homer Electric Association (proxy for AEG&T) The meeting was called to order at 10:15 A.M. I ADOPTION OF PRIOR MEETING MINUTES April 18,2002 meeting minutes were approved as submitted. II APPROVAL/MODIFICATION OF AGENDA The agenda was adopted. ? Il COMMITTEE CORRESPONDENCE AND REPORTS A.Dispatch Subcommittee The subcommittee had met three times and reported on the deliberations regarding spin allocations.The subcommittee reported that the spin proposal by ML&P was technically implementable but the subcommittee was unable to recommend implementation. B.Reliability/Protection Subcommittee No report. C.Machine Rating Subcommittee The subcommittee had met at ML&P Plant 2 and reported that they had requested that GVEA provide a report on the effect of the BESS on the system and other unit governors.. D.SCADA/Metering/Communications Subcommittee No report E.Maintenance Subcommittee The subcommittee received a $35,000 estimate for a study by EPS to develop a plan for SVC continuance. F.Budget Subcommittee The subcommittee recommended a budget,MITCR and rates for the year. The previous year ended with a $86,000 surplus although not all invoices were in yet. Page 1 of 3 G. H. Intertie Status Report AEA reported that the settlement agreement on the MEA lawsuit had been signed. Communications Received None was received. IV VISITOR'S COMMENTS RELATED TO ITEMS ON AGENDA No visitors were present. Vv RECESS Recess was deferred -went right into work session. VI WORK SESSION A.Dispatch Subcommittee The relaying between Douglas and Teeland Substations was discussed. The subcommittee is working on resolving the meaning of SVS alarms. Reliability/Protection Subcommittee No discussion Machine Rating Subcommittee No discussion SCADA/Metering/Communications Subcommittee Time permitting the subcommittee should discuss data interchange among utilities.Communication channel requirements and meter calibration at Douglas needs review. Maintenance Subcommittee Decided to wait 30 days or so for the EPS SVS study. Budget Subcommittee Recommended that the IOC adopt the budget,MITCR and rates developed by the subcommittee. Outage Reporting ML&P reported that the web based reporting system would soon be operational. Spin Resolution ML&P spin resolution was discussed. State GrantSB2006appropriation was discussed.A recommendation to AEA was developed.A subcommittee was assigned to develop recommended priorities of technically feasible options to satisfy the appropriation.Dora Gropp was designated chairman.Committee members are: Dora Gropp and Luke Sliman,Chugach Doug Ritter,Golden Valley Larry Hembree and Allen Mitchell,ML&P Ray Morgan and Bob Drake,Matanuska Mike Yerkes,Homer Karl Reiche,AEA VII FORMAL OPERATING COMMITTEE ACTIONS /RECOMMENDADTIONS 02-04 Motion to Approve a Budget of $1.7 million for FY 03 as recommended by the Budget Subcommittee. Page 2 of 3 Vill IX Bob Day moved to accept the above motion,which was seconded by Bob Drake. The motion was passed unanimously. 02-05 Motion to Approve MITCR recommended bythe Budget Subcommittee. Henri Dale moved to accept the above motion,which was seconded by Bob Day. The motion was passed unanimously. 02-06 Motion to Adopt the Resolution for a 40/40/20 Spinning Reserve Allocation Methodologyasproposed by ML&P and forwarded by the Dispatch Subcommittee. Bob Day moved to accept the above motion,which was seconded by Henri Dale. The motion failed with GVEA and ML&P voting YEA and AEG&T and Chugach voting NEA. 02-07 Motion to Adopt the Resolution proposing Anchorage-Fairbanks Intertie Upgrade/Extension Design and Construction Management Plan as developed during work session. Henri Dale moved to accept the above motion,which was seconded by Art Copoulos.The motion was passed unanimously. SUBCOMMITTEE ASSIGNMENTS Dispatch Subcommittee Continue work to resolve SVS alarms. Reliability/Protection Subcommittee No additional assignment. A. B C.Machine Ratings Subcommittee D E No additional assignment. SCADA/Metering/Communications subcommittee Review communication circuit list and metering accuracy at Douglas. Maintenance Subcommittee No additional assignment. F,Budget Subcommittee No additional assignment. DETERMINE AGENDA FOR NEXT MEETING The next meeting was set for October 10,2002 at Chugach starting at 10:00 A.M. ADJOURNMENT The meeting was adjourned. Page 3 of 3 -a 1gFOC Meany -_ Mac Rating sub.Bos.dey __asted _fer__mho_on_Russ cred o/MRSC. 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Doves (Whee -rou :ath --7 _ To vepedt eeg ee CB -cc-THwWes bot Usqrddo +Bupa ||WRCR ADE._Son._uegroda -8 F200)_TPRatiror0eg?7 hte A porto of a ox tond west :herr Stineeg|herr hxénaaoe” Ye _ B=Fumb-tHs-One-OWLy ( MBA wendy 950 bnv__40_db trvouteon vol lege not Sphetet-to_"vsuaeh_m_VUS., Me Ae2 e_feble__Fo. -Bde - "a oyArtCopoulos N 'From:John Cooley [John_Cooley@chugachelectric.com] Sent:Tuesday,July 16,2002 11:15 AM To:ACopoulos@aidea.org;John Cooley;hfdale@gvea.com;DStead@HomerElectric.com; rcdrake@matanuska.com Ce:Brian Hickey;Ed Jenkin;Luke Stiman;Steve Gilbert;HallDW@ci.anchorage.ak.us; JSchroeder@HomerElectric.com Subject:1OC Meeting Reminder The next meeting is in Homer on Thursday,July 25 starting at 10:00 AM. |will get out a formal agenda before then. 1 am inviting all the participants to attend in person as I believe face to face communications will improve our meeting. Qne-item for discussion is the $20.3 million grant to extend the and how we should proceed.Section 7.4 of the Intertie Agreement statés that the design for modifications and additions shall be submitted to the Operating Committee for review and comment.Therefore,it seems reasonable that the IOC or a subcommittee would be an appropriate oversight group to advise AIDEA on this project. John S.Cooley,PE Manager,Power Control &Fuel Mgmt. Chugach Electric Association,Inc. Tnterte ex tenShO oO >Issves to Evalue; Subcommittee -Rovte,-Exiskng /A Uernative, - Land Ownership /rowegyproit-SCADA Protocol -Teemmrene COMPAIDcompartbitiy-ATA Manage contract *J w[Sug *gContract-CompevrDesigh-Bid-Fuld.opis |Design -Beild 7”Schedule _Organi 2atioy 0.3.million _.aw_.§_._Avarlable -_no__extry etc. coveredtoy ADEA (HEA wo Any...cds,deFicrences, _.NoT__. Steenvy er Comms tsHee.to _...OU eErEeeR ath.QASPEcTs » _over hat - 2 hyrcomad\onon4 That] =>(Ae reemnertt with'all_the.Rost _.__ a _OF THEM {| . a RY i ites |,Ce oe Awg __addivoral _avnoont._. _TER dolQ For.begs lature._fe. __.A h.Budget limitedto20.3%-no other Findsa, Secton VNI --Trterte Agreement =Desqan-ecr-modikxatoss submit \-2?Operating-__Lo m+-Coc),+ncerporatep (7.4.3-Does_not apple)Toc _has__nversaht ale |Set-up _Sheenvy _commibtee.theo|Toc tO Over seo> 2e¢.4,3.-ovtlres TOc@utton c 175-2 Majority RQ'A 0.3.On decesiey Competihively Bd .|Cen tPP |As t nal =Can-ao fobindng-_arbtrtey™EACH DecisSiyi an[Ths Cancel.LOONT _|LdDeK \aaa a ara Lohn's__Rea =.get ve__ike 6 dyChgacf,-_ConNarcE., |:=aN Re a fesgn-CRITERIA / ae PEGI>A<bDs\:5 , -_---- <<SHE _Jotw -l Extensrm__ch_Tnterke Tec Rett etre oversite._committee 6.Does Stale. =---lay ovt___4,Hereatives _-5c00E_oF work,-Rote sekectam_-none ehwhoownslolwok90miesWewas©teeaee Teelang is 5 85, LAWS OF ALASKA 2002 SECOND SPECIAL SESSION Source Chapter No. HCS CSSB 2006(FIN)am H |SSSLA 2002 AN ACT Making and amending appropriations and reappropriations;making appropriations under art.IX,sec.17(c),Constitution of the State of Alaska,from the constitutional budget reserve fund;and providing for an effective date. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: THE ACT FOLLOWS ON PAGE 1 a prototype weather station in a severe high altitude location known to generate avalanches in Eagle River. ec.76.DEFERRED MAINTENANCE.The sum of $10,000,000 is appropriated from the general fund to the Department of Administration for deferred maintenance of state facilities.The Department of Administration may use these funds for deferred maintenance of state-owned facilities operated by other state departments. *Sec.77.DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT.If approved by the United States Department of Commerce,the sum of all loan payments currently held in the disaster relief fund (AS 26.23.300),estimated to be $475,000,and all subsequent payments,estimated to be $40,000,resulting from the 1997 Bristol Bay and Kuskokwim River economic disaster loans authorized under sec.2,ch.34,SLA 1998,are appropriated to the bulk fuel revolving loan fund (AS 42.45.250).$3,372,000 *Sec.78.ENERGY PROJECTS.(a)The sum of $48,872,060 is appropriated from the Railbelt energy fund (AS 37.05.520)to the Department of Community and Economic Development for payment as grants under AS 37.05.316 to the recipients named,for the purposes described,and in the amounts set out below: RECIPIENT PURPOSE APPROPRIATION Homer Electric replacement power supply $2,000,000 Association for Seldovia Golden Valley Parks Highway line extension,872,000 Electric Association Ester to Mile 320 300,000 Matanuska Electric Lucas substation underground 6,668,600 Association line and Pioneer line extensions with the new 230 kilovolt transmission line between Douglas and Stevens (b)The sum of $19,300,000 is appropriated from the Railbelt energy fund (AS 37.05.520)to the Department of Community and Economic Development for payment as a grant under AS 37.05.315 to the Municipality of Anchorage for Anchorage Municipal Light -131-HCS CSSB 2006(FIN)am H 1 and Power for Eklutna project transmission line upgrade. €sum of $20,300,000 is appropriated from the Railbelt energy (AS 37.05.520)to the Department of Community and Economic Development,Alaska Energy Authority,to upgrade and extend the Anchorage to Fairbanks power transmission ”intertie to the Telnd bstn -----*Sec.79--F RCE FOR FY 2003 DEPARTMENT OF PUBLIC SAFETY,FIRE6 7 PREVENTION,APPROPRIATION.The operating appropriation made for the fiscal year 8 ending June 30,2003,to the Department of Public Safety for fire prevention in a version of 9 HB 403,or other version of the operating appropriation bill for fiscal year 2003,that is passed 10.by the Twenty-Second Alaska State Legislature and enacted into law includes an 11 appropriation of the unexpended and unobligated balance on June 30,2002,of the receipts 12 collected under AS 18.70.080(b). 13 *Sec.80.GAS PIPELINE PERMITS.The unexpended and unobligated general fund 14 _balance,not to exceed $150,000,of the appropriations made in sec.1,ch.60,SLA 2001,page 15-17,line 29 (Office of the Governor,commissions/special offices -$1,527,100);sec.1,ch.60, 16 SLA 2001,page 17,line 31 (Office of the Governor,executive operations -$8,593,200);sec. 17 '1,ch.60,SLA 2001,page 18,line 6 (Office of the Governor,state facilities rent -$416,000); 18 sec.1,ch.60,SLA 2001,page 18,line 10 (Office of the Governor,office of management and 19 budget -$1,761,500);and sec.1,ch.60,SLA 2001,page 18,line 13 (Office of the Governor, 20 governmental coordination -$4,694,800),is reappropriated to the Department of Natural 21 Resources for the fiscal year ending June 30,2003,for preparing the state to issue permits for 22 gas pipeline projects. 23 *Sec.81.REAPPROPRIATION OF LEGISLATIVE APPROPRIATIONS.(a)The 24 unexpended and unobligated balance,not to exceed $600,000,of the appropriation made by 25 sec.1,ch.60,SLA 2001,page 38,lines 8 -9 (legislative operating budget -$7,224,500)is 26 reappropriated to the Legislative Council,House Rules Committee,for information 27 'technology subcommittee projects. 28 (b)The unexpended and unobligated balance,not to exceed $150,000,of those 29 portions of the appropriation made by sec.I,ch.60,SLA 2001,page 37,line 30,that are 30 -_allocated on line 33 (Legislative Council -Administrative Services -$7,498,500)and on page 31 38,line 6 (Legislative Council -Legal and Research Services -$2,216,300)are reappropriated HCS CSSB 2006(FIN)am H -132- Saturday,July 13,2002 Voice of the Times MEA:Daily News just doesn't get it By WAYNE CARMONY Years ago,the Railbelt Energy Fund was created to fund big projects to benefit the whole Railbelt.It was a tempting pot of money. While others spent the last two legislative sessions trying to figure out how they could spend nearly every remaining penny of it,the Matanuska Electric Association lobbied to preserve the fund.Where was the Anchorage Daily News then? While others suggested to MEA that we play along to get along,we continued to try and protect the integrity of the fund. We successfully helped block the spending spree until the final days of the second session. Unfortunately,those desiring to raid the fund eventually prevailed. Once it became clear the train was leaving the station,Eagle River and Mat-Su legislators made a compelling case that if the fund was going to be spent,then at least the people of Eagle River and Mat-Su areas should be given their share.Thanks to the efforts of our local legislators,and support from the overwhelming majority in both the Senate and the House, $16.2 million was appropriated from the Railbelt Energy Fund to the area MEA serves. Then the veto of $15.5 million.Gov.Tony Knowles'explanation for targeting the people of Eagle River and Mat-Su does not pass the red-face test.The governor claimed in his veto message that the projects were added at the end of session and not enough information was provided.That's absurd. What the governor failed to mention is that neither he nor anyone in his administration ever asked MEA for any information about those projects. The truth is that his veto is exactly what the Anchorage Daily News reported:a veto targeted at the districts of certain Republican legislators. Yet,the newspaper editorialized in support of Knowles'vindictive veto of more than $15 million in electrical projects for the Eagle River and Mat-Su area. It did not mention that the governor left undisturbed $2 million for new power in Seldovia, $1.5 million for pioneer line extensions in the Fairbanks area (half added during the last week),$19 million for a premature upgrade of an Anchorage transmission line,$20.3 million to double the capacity for power sold from Anchorage to Fairbanks,and millions more for electric projects in Kodiak,Cordova,Copper Valley,etc. A closer look at the $15.5 vetoed would reveal that $10 million was simply a hold-harmless provision so MEA consumers would not have to pay at least an additional $7 million to $10 million as a result of AIDEA's questionable intertie upgrade scheme.==->-------- The remaining $5.5 million Knowles vetoed would have allowed relocation of the Lucas substation away from a busy intersection on the Glenn Highway in Palmer,undergrounding of some troublesome lines in downtown Eagle River,Palmer and Wasilla and extension of pioneer lines to people in rural Mat-Su who at this time are not even connected to the electric grid. I hope that in the future the Daily News editors will at least provide the people of Eagle River and the Mat-Su --and the MEA --the courtesy of an inquiry before jumping to these startling conclusions. The governor's veto to try and punish certain legislators may just be politics as usual to him,but from where MEA sits,the only people who are going to suffer are the Alaskans who live in Eagle River and the Mat-Su area --Republican,Democrat and Independent alike. Wayne D.Carmony is general manager of the Matanuska Electric Association. De yelop Resp,'te Taian Process Kc (Reve.Krall?\90 sees OR wee ne _-pe yoy i Seance ewa=NY |.serves-many-oti l tresallesdewePrecunvehma=Compeludly 'select conlea choy 7 ee _,=Oversee -&.Manage a ABA..._-=Submit--Plan-'to.-BOG... _Nevado:MoRE oynasboner--- een, we ee Od nee cee feeme Bae ee ie, ne ot oe Sans Sacer Sess canes Gea ALASKA INTERTIE OPERATING COMMITTEE MEETING AGENDA THURSDAY,April 18,2002 BEGIN AT 9:00 A.M. I.Adoption of prior meeting minutes II.Approval/Modification of agenda I.Committee reports and correspondence A.Dispatch Subcommittee B.Reliability/Protection Subcommittee C.Machine Ratings Subcommittee D.SCADA/Metering/Communication Subcommittee E.Budget Subcommittee F.Maintenance Subcommittee G.Intertie Status Report H.Correspondence Received IV.Visitor's Comments Related to Items on Agenda V.Recess,if needed VI.Work Session A.Dispatch Subcommittee B.Reliability/Protection Subcommittee C.Machine Ratings Subcommittee D.SCADA/Metering/Communication Subcommittee E.Budget Subcommittee F,Maintenance Subcommittee VII.Formal Operating Committee Actions/Recommendations VIII.Subcommittee Assignments IX.Determine Agenda for Next Meeting to be hosted by AEG&T in July X.Adjournment Meeting Location:Golden Valley Electric Association,Inc. Headquarters Building 758 Illinois Fairbanks,Alaska 99707 1S-| ALASKA INTERTIE OPERATING COMMITTEE MEETING AGENDA THURSDAY,April 18,2002 BEGIN AT 9:00 A.M. I.Adoption of prior meeting minutes U.Approval/Modification of agenda Il.Committee reports and correspondence A.Dispatch Subcommittee B.Reliability/Protection Subcommittee C.Machine Ratings Subcommittee D.SCADA/Metering/Communication Subcommittee E.Budget Subcommitiee F.Maintenance Subcommittee-next weel® G.Intertie Status Report H.Correspondence Received-Spm IV.Visitor's Comments Related to Items on Agenda <Recess,if needed VI.Work Session Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communication SubcommitteeBudgetSubcommittee-[Apo HAMDLE caste shorttatl/Maintenance Subcommittee Ny Panel xoggy«\Drte -Battery Stn _Toc eventsmamMOOW> I SVS Vil.Formal Oper.Committee Aconaéeommendations Vil.Subcommittee Assignments Ix.Determine Agenda for Next Meeting to be hosted by AEG&T in J ulyl 'a X.Adjournment Meeting Location:Golden Valley Electric Association,Inc. Headquarters Building 758 Hlinois Fairbanks,Alaska 99707 Repurting ale Tot ort Notes.=...eRe "syne 35 a eee dope Muvtes as presented eeTnbobre,do synopsis of notes.cyoO.ay >what ARE P,Mela,ple lwaAPRULS©Report-Tile.SEB SNM Calibration San a..ReNtabil ity /ProlecHon ee wo New Chattman Rag be Reclosing @Teel...shor Reclose i ANNO 1010 bee ee cr Relay behoeen ..Doggles:Teclanel +Rephie_relay..+.leoke_ a wee one @.....COMMONS__.path...proposed popfeetetROC,I Bulge A504.Project. >Mache.Reding and BOK _m_Line.+bengseatedaFmaltbe_moe months, _Ds patch _ Revrew__alarms _ _..Develop Preceores Por__foe onse- ee (2 we TvNC-t /vow.BAD_.Ave..PAATS 2...=Can"yoo.00 Keep.Ereog _TTHEMyAScceeLo.Proll OT rca. ar eee U0 77)Techneral..Proposal.to Siy7ZoekCostOxareeterislem...hal"an prov (2). Y oF Eowe negabine +Bill Basoddom Mi TCR) 2 CAs bowO___ROOKS ater FS cALn NEAR per a Taturke Ag reernent _ .TE shortage P4y-peA__MITCR LAE LO.re Ford Ba sed _on USACE -*_@_Evd oF_yoon__pay geht SEND_ouT_8trr._foR Cando ly EAR Pay.MATAR ao 30K-¥Rdd +0 Budget amounb__ba__MEA | . sat K Bod gol Cou moos __to Raine BBR #_nact-Lloe-meetyy [>Tind deco __0F Suc sticky -tn__nex yous 8S oa-xs a Week of May 13h Tw,R = Heeo Toor =Corgis -OR c00, >eck cost PRIOR TO Baiget Finulizaton+\a SPIN se Ask Toedirect Dispatch SbhComm, =- va fo___address _sPi-_1ssvesRow4HowValwe_Shin)4 Tectwicar_detals ->(Rgd_+0 modity Hi)Reserve.RQmts < "e| wee ee a ea cae canteen Unie tee se Spm -RA'mt to be.modiFeed0 27.808.WILE,SAOUIDE...COPIES Lo PROPOSAL.>For.|VoTine €nopt roc |"Meck. ;=Wee Allecetow /PROPOSE aha.VEKdy NCOP tor.ollRUS 4 _eeororES7.cue ett ne,pasoP_Spon _-Dssoes Neal s "to.be,adresse, cee oe ae been \Hod_mMucihk..SP)___feeclad 8 tO ee What R QL mend ce SOME veTE in t0__Dow=PUT ro BE)ee Ep.tres _|_veTE_..ce ,a state drew yore aweeamIaieee@QeRe2-- wn =>.BudgetSob.Meet.tto.Fra lRe ee eeeeeteereHeanee eereer ee Moule Sub AssistStego Prepare SUS.Repra -WEA JULYOGHomeER - aeY ot . if j or ° oe \>-\ ALASKA INTERTIE OPERATING COMMITTEE MEETING MINUTES THURSDAY,APRIL 18,2002 (GOLDEN VALLEY ELECTRIC ASSN -BOARD ROOM) Present:; Accs =Dom Stead Wen John Cooley Art Copoulos Henri Dale Bob Day Chugach Electric Association (CEA) Alaska Industrial Development and Export Authority (AIDEA) Golden Valley Electric Association (GVEA) Anchorage Municipal Light &Power (AMLP)-?\Bob Drake J Matanuska Electric Association (MEA)&(proxy for AEGT)Sante rian Hickey Chugach Electric Association (CEA) yews Luke Sliman Chugach Electric Association (CEA) The meeting was called to order at 9:05 A.M. l ADOPTION OF PRIOR MEETING MINUTES January 24,2002 meeting minutes were approved as submitted.A suggestion was made that future minutes reflect a synopsis only,rather than the "he said,she said” type of format.* I APPROVAL/MODIFICATION OF AGENDA Two items were added to the agenda,both under Section VI.Work Session: -"Outage Reporting,”added as Item G. -"Spin”added as Item H. Ul COMMITTEE CORRESPONDENCE AND REPORTS A.Dispatch Subcommittee The Dispatch Subcommittee met on March 20,2002. >Some of the topics discussed were:relaying between Teeland and Douglas,the quarterly forecast,and recent outages. Page 1 of 6 Reliability/Protection Subcommittee The Reliability/Protection Subcommittee had met,and the following was reported: >Ray Morgan was elected as Chairman. >Aone shot reclose test was performed from the Teeland end to check for ground faults on the line.It was confirmed that the scheme still in place is;the northern Intertie trips when the Teeland-Pt.MacKenzie line trips. >The subcommittee also discussed a $250,000 project to replace relaying between Teeland and Douglas. Machine/Rating Subcommittee Machine/Rating Subcommittee met on February 28 at Beluga for a gas field tour. >The Machine/Rating Handbook is 90%done for going on-line with graphics,etc.It has now been re-written in a web-based format,and should be coming out in the near future. SCADA/Metering/Communication Subcommittee This subcommittee has not met. Budget Subcommittee The Budget Subcommittee has not met. >Budget submittals as well as MITCR and usage estimates for FY03 were requested.Some information has been received but not all utilities have responded as of yet. >A budget status report was submitted for review by the subcommittee members.Intertie usage and revenues are down.When the funds are low,the practice is to pay the outside vendors and contractors first,then the utilities are paid. Maintenance Subcommittee No report available. Intertie Status Report Page 2 of 6 IV Vi The Intertie has been working well.A recent trip at North Pole Plant and Healy caused some loadshed malfunctions on GVEA's new SCADA system. Bugs have been worked out,and the software has been corrected.The Snow Load Monitoring System has had four battery banks replaced with photovoltaic panels.Work on this system has been completed for the year. Dryden and LaRue will be submitting a report to include calibration. Correspondence Received Art Copoulos received an update on the settlement for the MEA wheeling rate lawsuit ($26,000 +interest).$32,000 should be put in the FY03 budget to cover the settlement. VISITOR'S COMMENTS RELATED TO ITEMS ON AGENDA No visitors were present. RECESS Recess was deferred -went right into work session. WORK SESSION " The work session began;discussions followed the agenda below. A.Dispatch Subcommittee When the subcommittee met,formal assignments were made to identify SVS alarms and determine the appropriate course of action.Some document research was done but more documentation still needs to be reviewed. Reliability/Protection Subcommittee The 100 series Schweitzers are nearing the end of their useful life.The relays will be the same,just re-wired.The problem of relay actions without flags will be addressed by the re-wiring scheme.One shot reclose at Teeland will be implemented for testing after the relay improvements have been made. The power flow study to address the maximum loading the MEA 115KV line can handle before the tie trips,will be assigned to the SAC. Page 3 of 6 Art Copoulos had previously sent out the SVC retrofit estimate to the |OC members.It was suggested that the committee retain a consultant to deliver a report on what needs to be done regarding this issue.One comment indicated this was more of a spare parts issue.There are budgetary and timeline issues in handling capital investment improvements on the tieline. Art will get a "not to exceed”cost for a study to be done on repair/replacement of the SVC system,and bring it to the 1OC. Machine/Rating Subcommittee The next meeting is scheduled for May 23 at AMLP Plant #2.The NorthernIntertielineisscheduledbebeenergizedthe3"quarter of 2003 so the BESS battery testing will become more of an issue for the Machine/Rating Subcommittee at that time. SCADA/Metering/Communications Subcommittee Henri will encourage the SCADA/Metering group to meet but is currently very busy implementing the new SCADA system at GVEA.It will be at least six months before the group can really start addressing issues. Budget Subcommittee It was proposed that future MITCR payments be made on day one of the fiscal year in order to fund the pot.Due to shortages this year,some utilities may have to pay in at the end of the year,based on their MITCR. The Budget Subcommittee needs to meet for FY03. (Committee took a short break from 10:15-10:27 AM.) F.Maintenance Subcommittee No major maintenance issues lately.GVEA needs to work on some 138 line changes in preparation for the new intertie.There will be a 20-30 ft tower move on the first span in from Healy. Intertie Outage Reporting Bob Day presented a report from their Information Technology person. Outage events reporting will be ready soon.Each utility will be able to put outage information into the database which can then be queried,etc. Spin Page 4 of 6 Vil Vill AMLP would like to move the spin issue to a conclusion soon.They would like to diligently work with the Dispatch Subcommittee over the next 90 days to iron out the 40/40/20 split proposal,and vote at the next IOC meeting. Operating Agreement Adendum 1 states that the spin requirement can be modified.Henri requested a copy of the above mentioned proposal. Discussions are to begin with the Dispatch Subcommittee.Due to underfrequency loadshed issues,quality and geographic location of spin should be addressed in the proposal.Is the initial amount of spin per agreement appropriate?Bradley and BESS could change spin requirements.Henri will handle information dissemination to the Dispatch Subcommittee and will copy Bob Day and John Cooley.Henri will also let Don Stead know that HEA and MEA can participate if desired.The end proposal will require a 3 out of 4 vote to pass. FORMAL OPERATING COMMITTEE ACTIONS/RECOMMENDATIONS 02-7?Motion to Study Upgrade of the SVC System per Reliability/Protection Subcommittee's Recommendation. Bob Day moved to accept the above motion which was seconded by Henri Dale.The motion was passed by those present. 02-7?Motion for the:SAC to verify the MW loading limit on the MEA 115 KV line in case of loss of the 230KV line. So moved by Henri Dale,and seconded by Bob Day.Motion passed. .,02-2?Motion for AIDEA to provide the cost of a report for a 10-year Life Study of the SVC System So moved by Henri Dale.Motion was seconded,and passed by those present. SUBCOMMITTEE ASSIGNMENTS Dispatch Subcommittee Work with AMLP on spin proposal.Have a recommendation for the |OC to vote on at the next meeting. Review intertie alarms and responses. Reliability/Protection Subcommittee Page 5 of 6 >Move forward with current assignments. Machine/Rating Subcommittee >Move forward with current assignments. SCADA/Metering/Communication Subcommittee >Needs to have a meeting. Budget Subcommittee >Hold meeting to discuss FY03 budget. Maintenance Subcommittee >Move forward with current assignments. DETERMINE AGENDA FOR NEXT MEETING Discussed agenda for the next meeting which will be held at 10:00 AM on Thursday, July 18,2002 at AEGT. ADJOURNMENT Bob Day moved to adjourn.Motion was seconded by Art Copoulos.Meeting adjourned at 11:10 AM.) Page 6 of 6 ALASKA INTERTIE OPERATING COMMITTEE MEETING AGENDA THURSDAY,April 18,2002 BEGIN AT 9:00 A.M. I.Adoption of prior meeting minutes II.Approval/Modification of agenda Il.Committee reports and correspondence Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communication Subcommittee Budget Subcommittee Maintenance Subcommittee Intertie Status Report Correspondence Received Stelins Re pol IV.-Visitor's Comments Related to Items on Agenda V.Recess,if needed VI.=Work Session -Stakuy ff 1041 foes hy Dispatch Subcommittee 7 keun Ag h Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communication Subcommittee Budget Subcommittee Maintenance SubcommitteeToOMMOUOWS /D{¥57mOOW>VII.Formal Operating Committee Actions/Recommendations VUI.Subcommittee Assignments IX.Determine Agenda for Next Meeting to be hosted by AEG&T in July X.Adjournment Meeting Location:Golden Valley Electric Association,Inc. Headquarters Building 758 Illinois Fairbanks,Alaska 99707 ---.%*}o-Art Copoulos \ From:John Cooley [John_Cooley@chugachelectric.com]Sent:Tuesday,April 16,2002 11:23 AM To:ACopoulos@aidea.org;John Cooley;hfdale@gvea.com;DStead@HomerElectric.com; rcdrake@matanuska.com Ce:Brian Hickey;Ed Jenkin;Luke Sliman;Steve Gilbert;HallDW@ci.anchorage.ak.us; JSchroeder@HomerElectric.comSubject:IOCAGNDA.doc WF |1OCAGNDA.doc Attached is the agenda for Thursdays meeting in Fairbanks.You should have already received the minutes from the 1/24/02 meeting at AIDEA .|am looking forward to seeing you there. John S.Cooley,PE Manager,Power Control &Fuel Mgmt. Chugach Electric Association,Inc. lay lop Loc Meetiy Foundetalht,-p oF lew monihy™+repuie eventually Sum J famely |Sato Maiab/Tasp -(Tnpect tong)TE "Pafpols! nood lineman Crews dmb Dee ee pauls _nbedd __Canangean ey Bubeth bale Sucommibi, -_RQ Quarkondy Mtge hh addicantoDOCaRitaputs__tegebhor "TntarbissBudly.Stocting-to Sten By (Sts ah _ansh Quant-douse msdking to __qo_oven__belyere.'alas\nec 24 wah Thursday 6h naaNV»Dud __Sub buy.Ze Thasradian ob mab - YF Neo_Re'd agave +_ynnulesohprevibosnosy.U/Wrost la es netag M4 Resp.-4o send.puhi_oa Darth OKI if toe iolas/ol +:of 10 fim -A IDEAiPINotesRecordodhq-nettet Dis pabch met by phone oO : (4G Brim theloy\>CeKw Dowy Relay uyq rade.+As-Built not met |Mache >not woth»be\uga lardgowtO hop Aba -no moo "F Wik Mayl__last Y_pda fe. :if W)ns,Suie not _vnes Mant,nok mer Reseed (A LDEM Respanae-) |HBS >varies I nergy Prefect [Teglad x Dovy lass [une =. 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Vil. IX. \ Dispatch Subcommittee Reliability /Protection Subcommittee Machine /Rating Subcommittee SCADA/Metering /Communications Subcommittee Budget Subcommittee Maintenance Subcommittee o7”™7moo®D>»ML&P Quarterly Report for Intertie Outages Formal Operating Committee Actions /Recommendations Subcommittee Assignments Dispatch Subcommittee Reliability /Protection Subcommittee Machine /Rating Subcommittee SCADA /Metering /Communication Sub Budget Subcommittee nomoo9>Maintenance Subcommittee Determine Agenda for Next Meeting Meeting Location:Date:Time: Adjournment \S-| ALASKA INTERTIE OPERATING COMMITTEE AGENDA Thursday,January 24,2002 10:00 A.M. AIDEA Board Room Anchorage,Ak Chairman -John Cooley nd aratngr Members Utility Phone Fax I,Email John Cooley CEA 762-4789 762-4540 |Johncooley@chugachelectric.com Bob Day ML&P 263-5295 263-5441 Dayrh@ci.anchorage.ak.us Bob Drake MEA 761-9283 761-9328 rcdrake@matanuska.com Henri Dale GVEA 451-5624 451-0556 hfdale@gvea.com Don Stead HEA 235-3336 235-3313 dstead@homerelectric.com Stan Sieczkowski AEA 269-3024 269-3044 ssieczkowski@aidea.org I.Adoption of Prior Meeting Minutes A. B. C. July 20,2000 August 8,2001 October 25,2001 Il.Approval /Modification of Agenda Wil.Committee Reports and Correspondence A B Cc D. E F G H Dispatch Subcommittee Reliability /Protection Subcommittee Machine /Rating Subcommittee SCADA /Metering /Communication Sub Budget Subcommittee Maintenance Subcommittee Intertie Status Report Correspondence Received IV.Visitor's Comments Related to Items on Agenda V.Recess Vi.Work Session Henri Dale,GVEAAlen, Luke Sliman,CEA Steve Gilbert,CEA Bob Day,ML&P Stan Sieczkowski,AEA Monte Ervin,GVEA a4 451-5645" 563-7494 762-4446 263-5295 269-3024 451-5686 ALASKA INTERTIE OPERATING COMMITTEE AGENDA %Thursday,January 24,2002 | 10:00 A.M. AIDEA Board Room Anchorage,Ak Chairman -John Cooley Members Utility Phone Fax Email John Cooley CEA 762-4789 762-4540 |Johncooley@chugachelectric.com Bob Day ML&P 263-5295 263-5441 Dayrh@ci.anchorage.ak.us Bob Drake MEA 761-9283 761-9328 rcdrake@matanuska.com Henri Dale GVEA 451-5624 |451-0556 hfdale@gvea.com Don Stead HEA 235-3336 235-3313 dstead@homerelectric.com Stan Sieczkowski AEA 269-3024 269-3044 ssieczkowski@aidea.org I.Adoption of Prior Meeting Minutes A. B. C. July 20,2000 August 8,2001 October 25,2001 Il.Approval /Modification of Agenda Il.Committee Reports and Correspondence A Dispatch Subcommittee B Reliability /Protection Subcommittee C.Machine /Rating Subcommittee D SCADA /Metering /Communication Sub E Budget Subcommittee F.Maintenance Subcommittee G.Intertie Status Report H.Correspondence Received IV.Visitor's Comments Related to Items on Agenda V.Recess Vi.Work Session Henri Dale,GVEA 451-5645 Luke Sliman,CEA 563-7494 Steve Gilbert,CEA 762-4446 Bob Day,ML&P 263-5295 Stan Sieczkowski,AEA 269-3024 Monte Ervin,GVEA 451-5686 Dispatch Subcommittee Reliability /Protection Subcommittee Machine /Rating Subcommittee SCADA/Metering /Communications Subcommittee Budget SubcommitteemmooOBDPMaintenanceSubcommittee fe)ML&P Quarterly Report for Intertie Outages Vil.|Formal Operating Committee Actions /Recommendations Vill.Subcommittee Assignments Dispatch Subcommittee Reliability /Protection Subcommittee Machine /Rating Subcommittee SCADA/Metering /Communication Sub Budget SubcommitteemmoO@PMaintenanceSubcommittee IX.Determine Agenda for Next Meeting Meeting Location:Date:Time: X.Adjournment a Intertie Operating Committee MeetingAIDEABoardRoom Thursday,January 24,2002 10:00 a.m. Roll Call: John Cooley Chugach Electric Association Stan Sieczkowski Alaska Energy Authority Henri Dale Golden Valley Electric Association Art Copoulos Alaska Energy Authority Brian Hickey Chugach Electric Association Don Stead Homer Electric Association Bob Drake Matanuska Electric Association ADOPTION OF PRIOR MEETING MINUTES: Meeting Minutes:October 25,2001 Hearing no comments,the minutes were unanimously approved as submitted. APPROVAL/MODIFICATION TO AGENDA: No additions/changes to the agenda. COMMITTEE REPORTS AND CORRESPONDENCE: Dispatch Subcommittee: Discussed the fact that we hadn't met for at least a year or longer.Any new business that was assigned that was passed on that the IOC would like the subcommittees to try to meet at least quarterly,by phone if nothing else.Discussed recent outages,nothing of significance came out of that.The topic of ML&P -about a year ago we had some mis-relaying between Teeland and Douglas.People were going to do as-builts of both sides and re-look at the relaying schemes there.The question in Subcommittee is where did that go and get left off,because it appeared to have stopped.; Brian Hickey mentioned that the as-builts are done,in fact,the bill went to Stan.We have aprojectintheCWPtoreplacethatrelay(in our construction workplan for this year),on a reimbursable to redesign and replace the relay between Douglas and Teeland.Where we are at right now,is that would go out as a task order contract.In the next month or two,we'll have a design and come back with a cost.The asbuilt of Douglas costs more than $18,000.There were no electronic result paper stuff,and so Pulson went up and pulled and tugged wires, asbuilt it,and then we drafted it in AutoCAD.We'll send a copy to you out at MEA. The topics of communications at Stevens and spin were both brought up and were both diverted as being lOC.We didn't discuss those,other than bringing them up. Reliability Protection Subcommittee: Brian Hickey mentioned that he believed they met,but it was informally. Machine/Ratings Subcommittee: Stan Sieczkowski noted that they haven't met.They are scheduled to meet next month and will be making the trip out to Chugach's Beluga plant. SCADA/Metering/Communication Subcommittee: Henri Dale stated he believed they have not met.He may have called some of the people to start arranging a meeting,but didn't know for sure if that has happened.Our SCADA system, we just started going live on it two weeks ago and have had benders up on it for the last month. |believe ML&P is in the same situation.As far as |know they have not met,although they may have individually talked about setting up the meeting.Then there was the question of who the Chairman was -that was minor.They will meet in the next month or so. Budget Subcommittee: No report available. Maintenance Subcommittee: No report available. Correspondence Received: Stan Sieczkowski had received a copy of the letter that went back to MEA's attorney with regards to the proposed settlement for the lawsuit between AEA and MEA.He believed that the interested utilities have been copied with that letter.He also received a copy of the dispatch subcommittee meeting minutes. John Cooley asked if the letter on MEA was AIDEA's response,basically saying...? John Cooley stated that basically,the suit would be settled without prejudice,MEA gets summary judgment of $26,000 or some such money.The rate stays at the rate it's always been,at least for the remainder of the contract.If the contract is extended and somebody wants a rate change,they'll go through the IOC dispute resolution,if they can't agree on the numbers. |think everybody agreed to support House Bill 175.HB 175 is money for various interties/electrical projects/energy projects. VISITOR'S COMMENTS RELATED TO ITEMS ON AGENDA: No comments. Page 2 of 7 WORK SESSION: Dispatch Subcommittee Issues: It was our understanding that we didn't have any tasks at that time.No one could recall if there was anything we were working on and that is where that had been left. Intertie Status Reports: John Cooley stated they have been trying to keep a decent folder on it.|guess that's one issue we need to keep moving on,and that those requests get done and they get them compiled.In the meantime,keep faxing them around and discuss any that people don't think work right. Brian Hickey stated:The issue is training of the dispatchers and probably training for everyone who works on the system.When we had the problem with the grounding transformer on the SVS,which burned up the resistors on the on the low side,we had the SVS at Teeland out for quite some time.What had happened was,alarm came into ML&P dispatch,and was in for some period of time,perhaps several days.The way that system is designed,that alarm is the same as the trip.The SVS should have been tripped off-line when that alarm came in.Not tripping it off line,caused this circulating current to reside in these low side resistors for quite some time and eventually burn the resistors up and some other things. Bottom line,|have to say,had |seen the alarm,|wouldn't have known you were supposed to trip the SVS on it.But,that's when you look at the way the thing is designed -it replaces an over-current trip on the transformer.So,basically,we were feeding a ground fault for several days,and the reason it's designed that way,after some research,it's a cheap way to build, without putting in a high voltage grounding resistor on the transformer off the 138-13A transformer,you put in this PT and you put in these resistors on the low side and the bottom line is that it's a cheap way to implement a grounding transformer or a grounding resistor.But, because of the way you do that,and you can't count on the fault current remaining constant, you don't actually trip off of it,you give someone an alarm and they're supposed to trip the SVC. It was sitting there with the ground fault for several days and |guess the issue comes up -how do we get the dispatchers trained -is there a way to find out what to do when alarms come in - what all the alarms mean,andif so,how do we get the dispatchers to understand what they are. Henri Dale responded he was not aware of anything that the dispatchers are being told that any of those alarms come in that you manually have to take it off.If it's serious,the machine takes itself off,if it's not serious,we send crews out.Regardless,someone always goes out and looks at it.I'm not too sure,unless it's written in black and white that feeding a fault,it would likely take days or longer for someone to figure out what's going on. Brian Hickey stated that's clearly what happened,that's why we had that fire up there. Stan Sieczkowski asked what would it take to implement an automatic tripping,so you don't have to rely upon people's memories? Brian Hickey responded that the problem is,you have to put a grounding transformer in.On the high side,you would have to build a grounding transformer or reactor to give you high sidegroundfaultcurrent.The issue being,.that if the fault is in there for any period of time,youbegintoburnuptheresistorsonthelowside,so the fall current gets smaller and smaller on the high side as the transformer heats up on the low side,your ground fault current on the high side Page 3 of 7 gets smaller and smaller,because the resistor gets bigger and bigger,so you can't use a time current curve to trip because you can't count on there being ground fault current for any period of time. Stan Sieczkowski asked if there was a report on what Brian just reported.What I'm leading up to,is can we get a report from you identifying these alarms and get this out to the dispatchers? Brian Hickey stated that he can write up what happened on this and forward it.What brought this to my mind is that if |can't figure them out,no one else can either.|had no clue what they meant. John Cooley asked if there was an alarm book or something that came with that. Brian Hickey responded that most of the stuff in those manuals is copies of a breaker or cut- sheets from different transducers.|will look through that or have someone look through it. John Cooley:|guess we ought to ask ML&P to look at the SCADA alarm book. Brian Hickey:Ask them to look at the list and tell us alarms they don't understand.At least that would give us -maybe somebody trained them -maybe they have some book.They may have had something at one time. Henri Dale noted that everybody brings back the same alarms on each of the units.That may be something.Or maybe they use the same nomenclature for each one.I'm not aware of an alarm book floating around.|remember at the time they did organize them into three or four levels of severity that they wanted to color code our alarms by.|don't remember anything describing the alarms,but I think it's probably something we need to dig up and pursue. Reliability Protection: Stan Sieczkowski said it would be his recommendation that they be told they need to look into this SCADA alarm system and find out what documentation we may or may not have. Art Copoulos remembered that Burlingame looked at the SVC's for the Y2K issues and he came back and said there was no documentation. Brian Hickey asked what exactly was being assigned to them? John Cooley responded:To find out what alarm documentation they do have. MACHINE RATINGS: SCADA: Brian Hickey stated that we're still running a common database with ML&P,so we've maintained that.Basically we can dispatch from their area or they can from ours.Originally Siemens made it out to be a difficult project,but it really hasn't been.We haven't even sunk anymoneyintospareworkstationstomaintainiton-we just run all the DBA jobs through oursystem.|think that they are probably not staffed really well to get theirs up and running.|can sit at my desk and watch ML&P open and close breakers. Page 4 of 7 Henri Dale mentioned that one of the things the metering people are supposed to do every so often,is check ail the different measurements to see if they are adding something up right. Since the last two or three months,we've been running with very little on the high -I'm seeing discrepancies between what you are saying and what we're saying.Percentage-wise,on if we're taking 70,it would have been impossible to see since we're running close to 0,I'm seeing percentage-wise it's running 15-20%off.Which is because it's off by a %megawatt,just because of the levels.Do you think there is any value in having them look at a month end set of meters,look them over carefully just to make sure they are in the balance of accuracy that we're expecting?We'll be running this level through March. Budget: Stan Sieczkowski said he was not aware of anything.He had just talked to Brenda Applegateandbasicallytheschedule|gave here is that the quarterly reports need to be done by the 15" of the month following the end of the quarter.He talked with Art Copoulos that a budget subcommittee meeting should be scheduled right in that time period to have that report so thattheycanforwarditontotheIOCwhichmeetsonthe3%Thursday following the end of the quarter.Everything should fall in line.That was the schedule that was passed on. Maintenance Subcommittee: Stan Sieczkowski stated that Dryden and LaRue has provided to us the draft contract for going out and getting solar panels for four additional sites on the snow load monitoring system.For all practical purposes,it looks good.We're going to tell them to go ahead and issue it.They willberesponsibleforoverseeingthecontractandgettingpanelsinstalledthatwouldreplacethe existing batteries. Of course,the idea is to change out all of the battery sites over a period of five years so that we no longer have the heavy battery maintenance costs and replacements.That program is underway.Dryden and LaRue also has the battery contract for maintenance at the present time.They went out and picked them up from MEA and brought them in and got them under charge.As soon as we get some weather,the contractor,Cruise,along with Dryden and LaRue will be transporting the batteries out to the sites that need to be replaced and getting them back in service. In fact,there's a couple of them that are down at the present time.Cruise has done a couple of patrols.Nothing has been found of any significance.The big item,because of the outage that was experienced out at Teeland,Charlie Kimmell called me and said he's having trouble findingsparepartsfortheSVS.He discovered what everybody knows and |told him |would bring it to the 1OC again that the committee really needs to take a good hard look at what to do with the existing SVS because you can't get spare parts for them. We've been extremely fortunate that we haven't had a major outage.Several years ago we had ABB come and do a presentation and they presented to the committee what they could do forusandif|recall correctly,for the three sites,it totaled just short of $1 million if we were to replace all three sites.The committee felt that that was an expenditure that they couldn't handle at that time.The recommendation is that the committee vigorously looks at what do you do with the existing SVS,because you can hardly support them. Page 5 of 7 Brian Hickey stated that he would agree with that.What we're going to end up with at some point is we're going to be replacing a large part of one under an outage circumstance.That's a decision we have to make at this level -do you want to just ride it out and when you have an outage they're out for a while and you just don't transfer as much power?Then do it under an accelerator is probably somewhat more costly replacement that you would do more proactive or preventative. John Cooley noted that the other issue is hard to deal with.The intertie contract was set up under conditions that no longer exist and there is no real method for funding capital improvements.Every now and then we come up with a fix.The snow load monitoring system, Golden Valley agreed to buy,and we agreed to pay them back over 10 years,pay interest and pay them back that way.The other part,because the contract was written when it was,you have to zero all the accounts at the end of every fiscal year and any excess money gets returned to the utilities and any deficits get made up,which prevents having any payment capital reserve fund,which would be one way to accumulate some money.It was written at the time, because there was a fear,and |don't know if it was real or not,that the excess money would end up in the general fund.The State was also providing the operating cash at the time too,which they don't any more. Times have changed,but the contract hasn't.|think the SVS,a large project like that,we need to work on two paths,one is to get some kind of agreement -maybe run that back to the budget subcommittee to come up with how you fund something like this.The other was for somebody to come up with the technical questions,as to what's the right one.I'd say that the State ought to go ask for quotes or proposals,or whatever the right thing is to -these controls are going, there are no spare parts -what can you furnish in its place and what would it cost.Then we could get the budget subcommittee to talk to everybody and figure out how to help teach people who are willing or able to fund this kind of thing. Stan Sieczkowski responded that he will assist Art in doing this.He would like to do is get a holdofCharliebecausehehasaninterest,and Monte Irvin from Golden Valley,get them plugged into this and also Brian and others. Brian Hickey also mentioned that there is one other thing brought to mind.|think it's something the dispatch subcommittee is supposed to be doing -and that is,calibrating the snow load monitoring devices.There is supposed to be at some point,some closure on a report that says if you get five degrees,and an increase of 15%intention,we have a snow load monitoring problem. At the end there is supposed to be a report that you have in dispatch that says when |see this number |have conductor on the ground. Stan Sieczkowski stated that Dryden and LaRue is under contract to provide that report and do that summary,but the weather has been such that there is no information and they have not been able to do it.It's still an ongoing project. Actually,it was MEA who had the contract with Dryden and LaRue to do it and the State now has taken over the overseeing of that contract,so it's Art's job.That's part of the existing contract that Dryden and LaRue presently has.Pau!Williams is the one gathering the data. John Cooley asked if there were any foundation problems. Page 6 of 7 ARUN ean eerie het Bae Se ee a ee AC eeBE aE a eee ote Stan Sieczkowski responded that yes,there are three structures,252,284,and 297.We were up this summer and looked at them.Structure 297 continues to move.MEA was provided the information on how to cable the footings together to limit the movement and they went up and did that,so that's done.Next spring,Dryden and LaRue will go back up and do another survey, the third one,and they have been providing the reports and give them back to the committee for consideration. John Cooley asked:The canyon up North where it was sliding down the hill -is that stabilized? Stan responded that the last he had heard Shannon and Wilson had completed their report and really there was no conclusions or recommendations. There were two schools of thought,and one was that either the structure foundation was failing and the thing was leaning over,or the whole mountain was sliding.Right now it's not a burning issue. Standard line controls have been made by both MEA and GVEA.Insurance inspector was out so,we're good for another year. NEXT MEETING DATE/PLACE: Next Meeting Date and Place:April 18,2002 at 9:00 a.m.at Golden Valley Electric Association. Next agenda items: Budget.It's that time of year to request the utilities to start putting their budget submittals together and get them over to Art,as well as your capacity energy projections and your peaks so that he can figure the MITCR and have it for the April meeting.If you can get that to Art byMarch20”. Brian Hickey:We'll try to get the quote on the relay replacement,but we're going to expense that thing -is that kind of a general feeling? John Cooley:What are we talking about? Brian Hickey:Money wise?Under 100.Probably 50,60,something like that.Do we have to write a justification up? Stan:Yes,an explanation of what it is,and why you are doing it.What I've asked everybody to do and specifically on extraordinary items,is write up a description of what it's for,how it's done. Meeting adjourned. 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Soc,(atx QuUEA -Afothuin tySeatsig)-heer jemea |mane)That Cocmoneu )Rit To worm WITH ON eile Steve,Udt\s Tom Kelley AAEP-hala hua|_ ;[Daruphne.=S--[Ray sargan =Sotelly unhelpal 5 Halll $B Drahe Eckod ct 4<a7-teniOMEpieoVA,MoU /J A. re a mat Zz "/E Ko =>NWOW)] Sea _FO a ,cata:/[|No (\hoseee --TS,Ld \Je ee DEY OLThy\ae DO a7CRarTeSTUD!/[Z|aw __f[Md an oy,yall =Co ratDNSaAA, :pate|We VA l \f\_(\|\_\JS-COL ONXHACTSDW8YTJ Be] DRAFT ALASKA INTERTIE OPERATING COMMITTEE Meeting Minutes Thursday,October 25,2001 10:00 a.m. ML&P Conference Room Anchorage,Ak Chairman -John Cooley Members Utility Phone Fax Email John Cooley CEA 762-4789 |762-4540 |johncooley@chugachelectric.com Bob Day ML&P 263-5295 263-5441 |dayrh@ci.anchorage.ak.us Bob Drake .MEA 761-9283 761-9328 rcdrake@matanuska.com Henri Dale -GVEA 451-5624 451-0556 hfdale@gvea.com Don Stead .HEA 235-3336 235-3313 dstead@homerelectric.com Stan-Sieezkowski AEA 269-3024 269-3044 ssieczkowski@aidea.org Mr.Mike Scott,ML&P General Manager explained the current ML&P organization structure.Bob Day will be filling in while Hank Nichols is absent.Bob Price will be filling in for Bob Day. In attendance were committee members,(absent was Don Stead),Bob Price,Ken Langford,and Steve Gilbert. I.Approval /Modification of Agenda _..Approved as presented. iH.Committee Reports and Correspondence A.Dispatch Subcommittee Henri Dale,GVEA 451-5624 No report. Reliability /Protection Subcommittee Luke Sliman,CEA 563-7494 No meetings held. Machine /Rating Subcommittee Steve Gilbert,CEA 762-4446 The committee met October 12,2001.Steve Gilbert reported the MRSC handbook is being installed on the Internet.Each utility will have access and will be able to keep their information updated.The next meeting is scheduled for Feb 2002 at the CEA Beluga Power Plant. SCADA /Metering /Communication Sub Bob Day,ML&P 263-5295 No meeting held. Intertie Operating Committee Meeting AIDEA Board Room Thursday,January 24,2002 10:00 a.m. Roll Call: John Cooley Chugach Electric Association Stan Sieczkowski Alaska Energy Authority Henri Dale Golden Valley Electric Association Art Copoulos Alaska Energy Authority Brian Hickey Chugach Electric Association Don Stead Homer Electric Association Bob Drake Matanuska Electric Association ADOPTION OF PRIOR MEETING MINUTES: Meeting Minutes:October 25,2001 Hearing no comments,the minutes were unanimously approved as submitted. APPROVAL/MODIFICATION TO AGENDA: No additions/changes to the agenda. COMMITTEE REPORTS AND CORRESPONDENCE: Dispatch Subcommittee: Discussed the fact that we hadn't met for at least a year or longer.Any new business that was assigned that was passed on that the IOC would like the subcommittees to try to meet at least quarterly,by phone if nothing else.Discussed recent outages,nothing of significance came out of that.The topic of ML&P -about a year ago we had some mis-relaying between Teeland and Douglas.People were going to do as-builts of both sides and re-look at the relaying schemes there.The question in Subcommittee is where did that go and get left off,because it appeared to have stopped. Brian Hickey mentioned that the as-builts are done,in fact,the bill went to Stan.We have aprojectintheCWPtoreplacethatrelay(in our construction workplan for this year),on a reimbursable to redesign and replace the relay between Douglas and Teeland.Where we are at right now,is that would go out as a task order contract.In the next month or two,we'll have a design and come back with a cost.The asbuilt of Douglas costs more than $18,000.There were no electronic result paper stuff,and so Pulson went up and pulled and tugged wires, asbuilt it,and then we drafted it in AutoCAD.We'll send a copy to you out at MEA. The topics of communications at Stevens and spin were both brought up and were both diverted as being |OC.We didn't discuss those,other than bringing them up. Reliability Protection Subcommittee: Brian Hickey mentioned that he believed they met,but it was informally. Machine/Ratings Subcommittee: Stan Sieczkowski noted that they haven't met.They are scheduled to meet next month and will be making the trip out to Chugach's Beluga plant. SCADA/Metering/Communication Subcommittee: Henri Dale stated he believed they have not met.He may have called some of the people to start arranging a meeting,but didn't know for sure if that has happened.Our SCADA system, we just started going live on it two weeks ago and have had benders up on it for the last month. |believe ML&P is in the same situation.As far as |Know they have not met,although they may have individually talked about setting up the meeting.Then there was the question of who the Chairman was -that was minor.They will meet in the next month or so. Budget Subcommittee: No report available. Maintenance Subcommittee: No report available. Correspondence Received: Stan Sieczkowski had received a copy of the letter that went back to MEA's attorney with regards to the proposed settlement for the lawsuit between AEA and MEA.He believed that the interested utilities have been copied with that letter.He also received a copy of the dispatch subcommittee meeting minutes. John Cooley asked if the letter on MEA was AIDEA's response,basically saying...? John Cooley stated that basically,the suit would be settled without prejudice,MEA gets summary judgment of $26,000 or some such money.The rate stays at the rate it's always been,at least for the remainder of the contract.If the contract is extended and somebody wants a rate change,they'll go through the IOC dispute resolution,if they can't agree on the numbers. |think everybody agreed to support House Bill 175.HB 175 is money for various interties/electrical projects/energy projects. VISITOR'S COMMENTS RELATED TO ITEMS ON AGENDA: No comments. Page 2 of 7 WORK SESSION: Dispatch Subcommittee Issues: It was our understanding that we didn't have any tasks at that time.No one could recall if there was anything we were working on and that is where that had been left. Intertie Status Reports: John Cooley stated they have been trying to keep a decent folder on it.|guess that's one issue we need to keep moving on,and that those requests get done and they get them compiled.In the meantime,keep faxing them around and discuss any that people don't think work right. Brian Hickey stated:The issue is training of the dispatchers and probably training for everyone who works on the system.When we had the problem with the grounding transformer on the SVS,which burned up the resistors on the on the low side,we had the SVS at Teeland out for quite some time.What had happened was,alarm came into ML&P dispatch,and was in for some period of time,perhaps several days.The way that system is designed,that alarm is the same as the trip.The SVS should have been tripped off-line when that alarm came in.Not tripping it off line,caused this circulating current to reside in these low side resistors for quite some time and eventually burn the resistors up and some other things. Bottom line,|have to say,had |seen the alarm,|wouldn't have known you were supposed to trip the SVS on it.But,that's when you look at the way the thing is designed -it replaces an over-current trip on the transformer.So,basically,we were feeding a ground fault for several days,and the reason it's designed that way,after some research,it's a cheap way to build, without putting in a high voltage grounding resistor on the transformer off the 138-13A transformer,you put in this PT and you put in these resistors on the low side and the bottom line is that it's a cheap way to implement a grounding transformer or a grounding resistor.But, because of the way you do that,and you can't count on the fault current remaining constant, you don't actually trip off of it,you give someone an alarm and they're supposed to trip the SVC. It was sitting there with the ground fault for several days and |guess the issue comes up -how do we get the dispatchers trained -is there a way to find out what to do when alarms come in - what all the alarms mean,and if so,how do we get the dispatchers to understand what they are. Henri Dale responded he was not aware of anything that the dispatchers are being told that any of those alarms come in that you manually have to take it off.If it's serious,the machine takes itself off,if it's not serious,we send crews out.Regardless,someone always goes out and looks at it.!'m not too sure,unless it's written in black and white that feeding a fault,it would likely take days or longer for someone to figure out what's going on. Brian Hickey stated that's clearly what happened,that's why we had that fire up there. Stan Sieczkowski asked what would it take to implement an automatic tripping,so you don't have to rely upon people's memories? Brian Hickey responded that the problem is,you have to put a grounding transformer in.On the high side,you would have to build a grounding transformer or reactor to give you high side ground fault current.The issue being,that if the fault is in there for any period of time,you begin to burn up the resistors on the low side,so the fall current gets smaller and smaller on the high side as the transformer heats up on the low side,your ground fault current on the high side Page 3 of 7 gets smaller and smaller,because the resistor gets bigger and bigger,so you can't use a time current curve to trip because you can't count on there being ground fault current for any period of time. Stan Sieczkowski asked if there was a report on what Brian just reported.What I'm leading up to,is can we get a report from you identifying these alarms and get this out to the dispatchers? Brian Hickey stated that he can write up what happened on this and forward it.What brought this to my mind is that if |can't figure them out,no one else can either.|had no clue what they meant. John Cooley asked if there was an alarm book or something that came with that. Brian Hickey responded that most of the stuff in those manuals is copies of a breaker or cut- sheets from different transducers.|will look through that or have someone look through it. John Cooley:|guess we ought to ask ML&P to look at the SCADA alarm book. Brian Hickey:Ask them to look at the list and tell us alarms they don't understand.At least that would give us -maybe somebody trained them -maybe they have some book.They may have had something at one time. Henri Dale noted that everybody brings back the same alarms on each of the units.That may be something.Or maybe they use the same nomenclature for each one.I'm not aware of an alarm book floating around.|remember at the time they did organize them into three or four levels of severity that they wanted to color code our alarms by.|don't remember anything describing the alarms,but |think it's probably something we need to dig up and pursue. Reliability Protection: Stan Sieczkowski said it would be his recommendation that they be told they need to look into this SCADA alarm system and find out what documentation we may or may not have. Art Copoulos remembered that Burlingame looked at the SVC's for the Y2K issues and he came back and said there was no documentation. Brian Hickey asked what exactly was being assigned to them? John Cooley responded:To find out what alarm documentation they do have. MACHINE RATINGS: SCADA: Brian Hickey stated that we're still running a common database with ML&P,so we've maintained that.Basically we can dispatch from their area or they can from ours.Originally Siemens made it out to be a difficult project,but it really hasn't been.We haven't even sunk any money into spare workstations to maintain it on -we just run all the DBA jobs through our system.|think that they are probably not staffed really well to get theirs up and running.|can sit at my desk and watch ML&P open and close breakers. Page 4 of 7 Henri Dale mentioned that one of the things the metering people are supposed to do every so often,is check all the different measurements to see if they are adding something up right. Since the last two or three months,we've been running with very little on the high -I'm seeing discrepancies between what you are saying and what we're saying.Percentage-wise,on if we're taking 70,it would have been impossible to see since we're running close to 0,I'm seeing percentage-wise it's running 15-20%off.Which is because it's off by a %megawatt,just because of the levels.Do you think there is any value in having them look at a month end set of meters,look them over carefully just to make sure they are in the balance of accuracy that we're expecting?We'll be running this level through March. Budget: Stan Sieczkowski said he was not aware of anything.He had just talked to Brenda Applegateandbasicallytheschedule|gave here is that the quarterly reports need to be done by the 15™ of the month following the end of the quarter.He talked with Art Copoulos that a budget subcommittee meeting should be scheduled right in that time period to have that report so thattheycanforwarditontotheIOCwhichmeetsonthe3°Thursday following the end of the quarter.Everything should fall in line.That was the schedule that was passed on. Maintenance Subcommittee: Stan Sieczkowski stated that Dryden and LaRue has provided to us the draft contract for going out and getting solar panels for four additional sites on the snow load monitoring system.For all practical purposes,it looks good.We're going to tell them to go ahead and issue it.They will be responsible for overseeing the contract and getting panels installed that would replace the existing batteries. Of course,the idea is to change out all of the battery sites over a period of five years so that we no longer have the heavy battery maintenance costs and replacements.That program is underway.Dryden and LaRue also has the battery contract for maintenance at the present time.They went out and picked them up from MEA and brought them in and got them under charge.As soon as we get some weather,the contractor,Cruise,along with Dryden and LaRue will be transporting the batteries out to the sites that need to be replaced and getting them back in service. In fact,there's a couple of them that are down at the present time.Cruise has done a couple of patrols.Nothing has been found of any significance.The big item,because of the outage that was experienced out at Teeland,Charlie Kimmell called me and said he's having trouble finding spare parts for the SVS.He discovered what everybody knows and |told him |would bring it to the IOC again that the committee really needs to take a good hard look at what to do with the existing SVS because you can't get spare parts for them. We've been extremely fortunate that we haven't had a major outage.Several years ago we had ABB come and do a presentation and they presented to the committee what they could do for us and if |recall correctly,for the three sites,it totaled just short of $1 million if we were to replace all three sites.The committee felt that that was an expenditure that they couldn't handle at that time.The recommendation is that the committee vigorously looks at what do you do with the existing SVS,because you can hardly support them. Page 5 of 7 Brian Hickey stated that he would agree with that.What we're going to end up with at some point is we're going to be replacing a large part of one under an outage circumstance.That's a decision we have to make at this level -do you want to just ride it out and when you have an outage they're out for a while and you just don't transfer as much power?Then do it under an accelerator is probably somewhat more costly replacement that you would do more proactive or preventative. John Cooley noted that the other issue is hard to deal with.The intertie contract was set up under conditions that no longer exist and there is no real method for funding capital improvements.Every now and then we come up with a fix.The snow load monitoring system, Golden Valley agreed to buy,and we agreed to pay them back over 10 years,pay interest and pay them back that way.The other part,because the contract was written when it was,you have to zero all the accounts at the end of every fiscal year and any excess money gets returned to the utilities and any deficits get made up,which prevents having any payment capital reserve fund,which would be one way to accumulate some money.It was written at the time, because there was a fear,and |don't know if it was real or not,that the excess money would end up in the general fund.The State was also providing the operating cash at the time too, which they don't any more. Times have changed,but the contract hasn't.|think the SVS,a large project like that,we need to work on two paths,one is to get some kind of agreement -maybe run that back to the budget subcommittee to come up with how you fund something like this.The other was for somebody to come up with the technical questions,as to what's the right one.I'd say that the State ought to go ask for quotes or proposals,or whatever the right thing is to -these controls are going, there are no spare parts -what can you furnish in its place and what would it cost.Then we could get the budget subcommittee to talk to everybody and figure out how to help teach people who are willing or able to fund this kind of thing. Stan Sieczkowski responded that he will assist Art in doing this.He would like to do is get a hold of Charlie because he has an interest,and Monte Irvin from Golden Valley,get them plugged into this and also Brian and others. Brian Hickey also mentioned that there is one other thing brought to mind.|think it's something the dispatch subcommittee is supposed to be doing -and that is,calibrating the snow load monitoring devices.There is supposed to be at some point,some closure on a report that says if you get five degrees,and an increase of 15%intention,we have a snow load monitoring problem. At the end there is supposed to be a report that you have in dispatch that says when |see this number |have conductor on the ground. Stan Sieczkowski stated that Dryden and LaRue is under contract to provide that report and do that summary,but the weather has been such that there is no information and they have not been able to do it.It's still an ongoing project. Actually,it was MEA who had the contract with Dryden and LaRue to do it and the State now has taken over the overseeing of that contract,so it's Art's job.That's part of the existing contract that Dryden and LaRue presently has.Paul Williams is the one gathering the data. John Cooley asked if there were any foundation problems. Page 6 of 7 Stan Sieczkowski responded that yes,there are three structures,252,284,and 297.We were up this summer and looked at them.Structure 297 continues to move.MEA was provided the information on how to cable the footings together to limit the movement and they went up and did that,so that's done.Next spring,Dryden and LaRue will go back up and do another survey, the third one,and they have been providing the reports and give them back to the committee for consideration. John Cooley asked:The canyon up North where it was sliding down the hill -is that stabilized? Stan responded that the last he had heard Shannon and Wilson had completed their report and really there was no conclusions or recommendations. There were two schools of thought,and one was that either the structure foundation was failing and the thing was leaning over,or the whole mountain was sliding.Right now it's not a burning issue. Standard line controls have been made by both MEA and GVEA.Insurance inspector was out so,we're good for another year. NEXT MEETING DATE/PLACE: Next Meeting Date and Place:April 18,2002 at 9:00 a.m.at Golden Valley Electric Association. Next agenda items: Budget.It's that time of year to request the utilities to start putting their budget submittals together and get them over to Art,as well as your capacity energy projections and your peaks so that he can figure the MITCR and have it for the April meeting.If you can get that to Art byMarch20". Brian Hickey:We'll try to get the quote on the relay replacement,but we're going to expense that thing -is that kind of a general feeling? John Cooley:What are we talking about? Brian Hickey:Money wise?Under 100.Probably 50,60,something like that.Do we have to write a justification up? Stan:Yes,an explanation of what it is,and why you are doing it.What I've asked everybody to do and specifically on extraordinary items,is write up a description of what it's for,how it's done. Meeting adjourned. Page 7 of 7 ,". p .| ***Transmission Result Report (MemoryTX)(Apr.10.2002 8:49AM)**¥ 1)AIDEA/AEA 2) Date/Time:Apr-10.2002 8:26AM File Page No.Mode Destination Pg (s)Result Not Sent 1027 Memory TX 97624540 P.8 OKPOONEEAcareereneeereerne 919077619328 OK 919074510556 OK 919072353313 OK P.1°8 92635441 OK R son for error ;;°°E23)No answer.bine fail E14)No facsimile connection Poste"Fax Note 7671 [en Dorm”>[PPrembecs \*ARt Copotus |handianaa Ih AIDEN /AEAPhone#.s a r=ar eer tor DRAFT LA RTI ERAT!Meeting Minutes Thursday,October 25,2001 10:00 am. ML&P Conference Room Anchorage,Ak Chairman -John Cooley Mambers (rik Phone Fax Ema!John Cooley CEA |762-4769 |762-4540_|Johneoo ley@chugachelectric.comBobMLAP263-5295 63-5447 gayh@ci.anchorage akus|Bob Drake MEA 761-6263 [761-3328 tedrake@matanusics.comHenriDaleGVEA451-5624 0556 :hidaley ea.comSteadHEA235-3313 |"detead@homereledric.comStanSleczkowskiAEA260-3024 |260-3044 je czkowskifRaides Mr.Mike Scott,ML&P General Manager explained the current ML&P organi structure.Bob Day'wil be fing in while Hank Nichols ia absent.Bob Price will be filing in for Bob Day.in attendance were commaiee members,(absent was Don Steed),Bob Price,Ken Langtord,and StoveGilbert: @.=Approval/Modification of Agenda -.a : A Dispatch Subcommittee Hend Dale,GVEA 7 451-5624 ._Noreport.. B Refabitty/Protection Subcommittee Luke Siman,CEA 563-7494 ©.Machine /Rating Subcommittes Steve Gilbert,CEA 762-4446 .The committee met October 12,2001.Steve Gidert reported the MRSC handbook isinstaliedontheInternet.Each utility wil have access and will be able to keep theirwntPdated.The next meetingis scheduled for Feb 2002 at the CEA Bega -0 Power Pant.. ; .D. SCADA/Metering /CommunicationSub Bob Day,ML8P > -S-253.505 No meeting had. Ay James Strandberg From:fjbettine [fibettine@matanuska.com] Sent:Friday,October 20,2006 9:35 AM To:Peery,Mark;James Strandberg;Karl Reiche;OHare,Charles (Charlie);Steve Gilbert;BrianHickey;DayRH@ci.anchorage.ak.us;HallDW @ci.anchorage.ak.us;hfdale@gvea.COM;JohnCooley;JSchroeder@HomerElectric.com;Kevin Dunham;Luke Sliman;John Cooley Subject:RE:ALASKA INTERTIE OPERATING COMMITTEE Attachments:072006_IOC Meeting Notes.doc 072006_10¢ ating Notes.doc Revised minutes for July 20,2006 meeting attached. ---Original Message--- To:"Peery,Mark"<MPeery@HomerElectric.com>,<FJBettine@matanuska.com>, <jstrandberg@aidea.org>,<kreiche@aidea.org>,""OHare,Charles \(Charlie\)" <COHare@HomerElectric.com>,"Steve Gilbert"<Steve_Gilbert@chugachelectric.com>,"Brian Hickey"<Brian_Hickey@chugachelectric.com>,<DayRH@ci.anchorage.ak.us>, <HallDW@ci.anchorage.ak.us>,<hfdale@gvea.COM>,"John Cooley" <John_Cooley@chugachelectric.com>,<JSchroeder@HomerElectric.com>,"Kevin Dunham" <Kevin_Dunham@chugachelectric.com>,"Luke Sliman"<Luke_Sliman@chugachelectric.com> From:"John Cooley"<John_Cooley@chugachelectric.com> Sent:10/20/2006 9:20AM Subject:ALASKA INTERTIE OPERATING COMMITTEE >>Draft minutes from yesterday. >> >>John S.Cooley,PE >>Director System Control >>&SCADA/Communications ALASKA INTERTIE OPERATING COMMITTEE MEETING NOTES THURSDAY,JULY 20,2006 (MATANUSKA ELECTRIC ASSOCIATION,INC.-BOARD ROOM) Present: Jim Strandberg Alaska Energy Authority (AEA) John Cooley Chugach Electric Association (CEA)-1OC Chairman Henri Dale Golden Valley Electric Association (GVEA) Doug Hall Anchorage Municipal!Light &Power (AML&P) Frank Bettine Alaska Electric Generation &Transmission (AEG&T) Note Taker: Robyn Cassara Alaska Electric Generation &Transmission (AEG&T) Called to Order: Meeting called to order at 9:05 a.m. Attachment: Attachment A:Agenda I ADOPTION OF PRIOR MEETING MINUTES A.The November 16,2005 minutes (AIDEA/AEA)-adopted as amended. B.The April 20,2006 minutes (GVEA)-adopted as amended with edits: -Frank Bettine present telephonically. li APPROVAL/MODIFICATION OF AGENDA e AEGT wants to add discussion on Mat-Su Trail System. e AEGT wants to add discussion of towers. e Agenda approved with modifications.(Attachment A). Ul COMMITTEE REPORTS AND CORRESPONDENCE A.Dispatch Subcommittee -Has not met this quarter. B.Reliability/Protection Subcommittee -Has not met this quarter. Cc.Machine Ratings Subcommittee -Has not met this quarter. D.SCADA/Metering/Communications Subcommittee -Has not met this quarter. E.Maintenance Subcommittee -Has not met this quarter. 'Alaska Intertie Operating Commuiuee MeetingN 3--Thursday,July 20,2006 Page 2 of 6 Hosted by:Matanuska Electric Association,Inc. lil COMMITTEE REPORTS AND CORRESPONDENCE continued F.Budget Subcommittee -Met at 2:00 p.m.on Tuesday,July 18,2006 at AIDEA/AEA offices in Anchorage, Alaska. -It was recommended that the budget for FY07 be adopted by the Intertie Operating Committee (IOC). G.Intertie Status Report -Draft report of survey provided by Power Engineers. H.Communications Received -Received letter from Mr.Miller.There were comments about why the IOC was not mentioned.The IOC was not in a position to make comments -all utilities were represented by the GM's. -Budget information received from AEG&T,ML&P and CEA.Budget information was sent out along with Golder and Peabody letters. -Approval packet (development information)was put into archive file by Jim Strandberg (AEA). -Information concerning Mat-Su Trail system along Intertie ROW forwarded by MEA. IV VISITOR'S COMMENTS RELATED TO ITEMS ON AGENDA No comments reported. Vv RECESS Recess declined. Vi WORK SESSION The work session began;discussions followed the agenda below. A.Dispatch Subcommittee i.6/25/06 outage John Cooley (CEA)reported that: -_B Phase to ground fault occurred due to an insulator string failure. -He then described the sequence of events which occurred leading to the wide spread outage in the Southcentral region.Doug Hall agreed to take on the responsibility of scheduling a meeting with IOC members to discuss the outage. B.Reliability/Protection Subcommittee -There needs to be a meeting to talk about the outage on 6/25/06.John Cooley (CEA)said they were operating a three (3)terminal line,but with marginal load. Doug Hall (AML&P)said that there were two (2)circuits this week between International and Pt.MacKenzie. Cc.Machine Ratings Subcommittee -Not sure if there are any assignments for the subcommittee right now,but the committee does need to develop uniform standards for a measuring machine.Jim Strandberg (AEA)asks if there are any issues.Doug Hall (AML&P)says not right now.Frank Bettine (AEG&T)says there is a report out discussing effect of aero *Alaska Intertie Operating Committee Page 3 of 6 Meeting Notes -Thursday,July 20,2006 Hosted by:Matanuska Electric Association,Inc. Vi WORK SESSION continued D. F. Break:10:47a.m. derivative turbines.Jim Strandberg (AEA)says that he will call Steve Gilbert and get a copy of the report.Frank Bettine (AEG&T)asks about the Lake Chackachamna study;wants to know if anyone knows about it.Jim Strandberg is aware of it,and he explains the location and gives a description of the lay-of-the- land.He says that it's a native corporation that wants to conduct a feasibility study and has been into AEA to discuss the project with them. SCADA/Metering/Communications Subcommittee A person from GVEA (not Henri Dale)was in a couple days ago to discuss with AEA about getting an Internet path and being able to go out on another source. Doug Hall (AML&P)said that the system has developed little by little.Jim Strandberg (AEA)said that there is a problem with the buried line.He asks what the status is of the project.Henri Dale (GVEA)said that there are problems with the carriers.Frank Bettine (AEG&T)said that he needs to provide metering information from the SCADA study.He also said that MEA has talked about putting in remote cameras at the Stevens and Douglas substations.He said he owes the [OC members information on that.Doug Hall (AML&P)said yes,they do need that information before the snow flies. Maintenance Subcommittee Henri Dale (GVEA)said maintenance is scheduled for Tower 692.He said they are asking for a budget;and that there is no contract yet.Doug Hall (AML&P)asks when the drilling will be done.Henri Dale (GVEA)replied that it didn't really matter when the drilling was done since they would be drilling through ice at anytime of the year.John Cooley (CEA)suggests that the solution is to put in thermal piles, which Henri Dale (GVEA)agrees with.Henri Dale (GVEA)said that last winter the ground subsided around the foundation.He said that the tower consultant had some concerns about the tower.He said there was an analysis prepared,and that he would send a copy to Jim Strandberg (AEA).Frank Bettine (AEG&T)suggests that there should be a spreadsheet of maintenance issues,and asks Jim Strandberg (AEA)about it.Jim Strandberg (AEA)agrees that there should be a spreadsheet,and that he would set one up.He explains that he would like to pull these operational projects together,get some time-lines assigned to them,and then get the group together to follow-up on it.He would like to see this run the same way as the utility companies do.He felt that this should be a goal.Everyone was in agreement.Doug Hall (AML&P)said that the southern end needs ROW maintenance clearing schedule.Frank Bettine (AEG&T)agrees. Budget Subcommittee John Cooley (CEA)said there should be a meeting to ask about the budget.Doug Hall (AML&P)said there should be a meeting to compile all the data.John Cooley (CEA)said there should be a meeting in early August when the year-end expenses are allin.Frank Bettine (AEG&T)said that what MEA will bill through June 30, 2006 is available in mid-August.Jim Strandberg (AEA)asks if the schedule can be pushed up.Frank Bettine (AEG&T)said yes,he was trying to do so.Jim Strandberg (AEA)asks if we can get a FY08 budget now.All 1OC members say yes,they are working on it. Meeting Resumes:10:55 a.m. *Alaska Intertie Operating Committee Meeting Notes -Thursday,July 20,2006 Page 4 of 6 Hosted by:Matanuska Electric Association,Inc. vi WORK SESSION continued Risk Assessment (Insurance) -John Cooley (CEA)said that they will get a proposal going on that.Doug Hall (AML&P)asked Henri Dale (GVEA)why they had to pay for repairs of a fence at one of their substations.Henri Dale (GVEA)replied that at one time that was part of their system area. G.Uparade/Extension/Repairs of Intertie (Status of AML&P Contract) It's planned that a new section of Intertie will be built from Teeland to Douglas Substations,paralleling the existing line.AML&P and AEA to meet on 8/3/06 to work out the pieces of the contract,so it can be signed.ML&P will be the construction manager.In 2017,this section of the Intertie is to revert back to Matanuska Electric Association,Inc.Jim Strandberg (AEA)asks the group for some background information about building this section of line.John Cooley (CEA)said that there might be some condemnation when acquiring the ROW,and that that could be a sticky point.Doug Hall (AML&P)said that he didn't think it would be a sticky point anymore.He said that Del LaRue had done a study about it.Jim Strandberg (AEA)asked if this project is part of the IOC.Doug Hall (AML&P)and John Cooley (CEA)both reply with a "yes,”that it would be part of the Intertie.AEA will be administering the contract;AML&P still has the contract with the state.Jim Strandberg (AEA)asks Frank Bettine (AEG&T)if they have a problem with this,to which Mr.Bettine replies with a "yes,”followed with an explanation that he's not at liberty to discuss the matter.AML&P and AEA will plan to get together soon. H.Draft Power Engineers Report (3 Party Review) Henri Dale (GVEA)thought it was an interesting report.John Cooley (CEA)said now that the survey results are in,what are we going to get from this?Jim Strandberg (AEA)said that he would like to know about the Scope of Work.He said that he would follow-up with the people that prepared the report,and then get back to the committee members.He asks Frank Bettine (AEG&T)for any comments.Mr.Bettine said that he had no comments,only that he had noticed that several of the utilities used unbalanced loads as a design criteria.Jim Strandberg (AEA)said that he was going to ask about Item D in the Scope of Work.Also,he wanted to know if AEG&T had any interest in the scope.Frank Bettine (AEG&T)said that they've all reviewed the scope.Jim Strandberg (AEA) asks if this would resolve the snow load and unsafe conditions.Henri Dale (GVEA) said if it is prudent,then he thought that they were doing OK.Jim Strandberg (AEA)said he'd get a report,then have a discussion with all the IOC members. I.Mat-Su Trail System Both Henri Dale (GVEA)and Frank Bettine (AEG&T)said that they don't know much about this project by the Borough (Ordinance No.06-098,IM No.06-154). Doug Hall (AML&P)and John Cooley (CEA)said that they thought the owners of their utilities should say something to the Mat-Su Borough about the use of the transmission line ROW.Jim Strandberg (AEA)asked Frank Bettine (AEG&T)to make an action item to find out more about the ordinance and then report back to the other |OC members.Mr.Bettine acknowledged that he would.Jim Strandberg (AEA)asks the other members if the IOC opposes this project.Doug Hall (AML&P)said this project was just announced,and that the IOC has not had a chance to meet on this yet.Mr.Strandberg asks Henri Dale (GVEA)if the members were to take a "no”vote on this ordinance,would he want to write a letter to the Mat-Su Borough saying so.Frank Bettine (AEG&T)said that he thought the owner's should write the letter regarding the ROW.Mr.Strandberg asks why the IOC couldn't write the letter.Mr.Bettine said that it's not the IOC as owner. *Alaska Intertie Operating Committee Page 5 of 6 Meeting Notes -Thursday,July 20,2006 Hosted by:Matanuska Electric Association,Inc. Vi WORK SESSION continued J. Henri Dale (GVEA)said that the committee could.Mr.Strandberg said that he was going to pursue this further.He said he wanted it to stay at the practical level.He said he would go to the State about this matter.John Cooley (CEA)said they could go to the State and say they thought it could be compatible.Mr.Strandberg said that he didn't think the Borough understood the guy wire issues.Frank Bettine (AEG&T)said he thought that issue should be addressed by the State /AEA,in regards to a 400'ROW.The question is whether or not it's an acceptable use of the ROW.[If it's not an incompatible use with the utility,then it's probably OK,but we don't know how the Borough is intending to use it.Mr.Bettine said an option to the State and Borough would be to put a fence up at either,or both ends of the corridor of intended use.He also said that MEA currently has issues with the Mat-Su Borough's Title 17 Essential Land Use Services.Jim Strandberg (AEA)said that he would like to have more discussion on this issue. Frank Bettine (AEG&T)will submit additional information. Unified System Operator Study $800,000 approved by legislature to fund Unified System Operator study.Jim Strandberg (AEA)will prepare draft RFP for review by |OC members. vil FORMAL OPERATING COMMITTEE ACTIONS/RECOMMENDATIONS A.Adopt FY07 Budget Motion 06-6:John Cooley (CEA)is looking for a motion to accept.Jim Strandberg (AEA)moves and Henri Dale (GVEA)seconded the motion to adopt the FY07 budget of $2,266,696 as recommended by the Budget Subcommittee with the modification to take one (1)section out.There is no discussion.The motion passed unanimously. Adopt FY07 MITCR Motion 06-7:John Cooley (CEA)is looking for a motion to accept.Jim Strandberg (AEA)moves and seconds the motion to adopt the MITCR calculation for FY07 as submitted by the Budget Subcommittee:AEG&T 23.2 MW,AML&P 18.7 MW,CEA 28.1 MW,GVEA 70.0 MW.There is no discussion.The motion passed unanimously. Vili SUBCOMMITTEE ASSIGNMENTS A.Dispatch Subcommittee They will make arrangements to schedule a meeting. Reliability/Protection Subcommittee Meeting should be scheduled to discuss June 25,2006 outage. Maintenance Subcommittee Henri Dale (GVEA)suggests that the maintenance be tracked with a spreadsheet and schedule.Jim Strandberg (AEA)said that the Subcommittee should schedule to meet. Frank Bettine (AEG&T)brings up the discussion of the foundations on towers 274 and 297.John Cooley (CEA)mentions something about risk assessments.Jim Strandberg (AEA)said that Towers 1 and 2 was an AML&P project (Teeland/Douglas line construction).Mr.Strandberg said that part of the trust fund could go towards the SVC study. *Alaska Intertie Operating Commitee Meeting Notes -Thursday,July 20,2006 Page 6 of 6 Hosted by:Matanuska Electric Association,Inc. Vill SUBCOMMITTEE ASSIGNMENTS continued D.Budget Subcommittee -The Subcommittee will schedule to meet in order to review the FYO6 results,and preliminary FY08 budget. -Jim Strandberg (AEA)outlines the action items for the Subcommittee: e _Intertie mitigation -Power use. PV panel installation ($125K to do the rest). SCADA study (SCADA Subcommittee to come up with a committee plan). Cameras at MEA Substations. SVC study for CEA -Tower foundation repairs. On-going clearing activities of the southern end.MEA to provide separate schedule and cycle. IX DETERMINE AGENDA FOR NEXT MEETING Next meeting to be held at 10:00 a.m.on Thursday,October 19,2006.To be hosted by CEA in Anchorage,Alaska. John Cooley (CEA)asks if there are any other discussion items and summarizes the following: e John Cooley (CEA)to provide Jim Strandberg (AEA)with the Maintenance contractors report and the status in a spreadsheet style format. e John Cooley (CEA)said there's an AEA action book,which the State has been maintaining.He said it hasn't been maintained for some time,and asks Jim Strandberg (AEA)if he has someone to update it.Jim Strandberg (AEA)said he does. xX ADJOURNMENT Jim Strandberg (AEA)asks for a motion to adjourn the meeting,and it was seconded.The meeting is adjourned at 12:03 p.m. [:Voc\072006_ioc meeting notes.doc DRAFT ALASKA INTERTIE OPERATING COMMITTEE MEETING MINUTES THURSDAY OCTOBER 19,2006 (CHUGACH ELECTRIC BOARD ROOM) Present: Frank Bettine Alaska Electric Generation &Transmission (AEG&T/MEA) John Cooley Chugach Electric Association (Chugach)-IOC Chairman Henri Dale Golden Valley Electric Association (GVEA) Doug Hall Anchorage Municipal Light &Power (AMLP) Jim Strandberg Alaska Energy Authority (AEA) Mark Peery Alaska Electric Generation &Transmission (AEG&T/HEA) Visitors: Alice Mullins Chugach Electric Association The meeting was called to order at 10:15 a.m. I ADOPTION OF PRIOR MEETING MINUTES A.The July 20,2006 minutes (AEG&T/MEA)-adopted as amended. B.The August 2,2006 minutes (teleconference)-adopted as amended. II APPROVAL OF AGENDA Adopted as submitted. Ill COMMITTEE REPORTS AND CORRESPONDENCE A.Dispatch Subcommittee a.Has not met since last meeting. B.Reliability/Protection Subcommittee a.Has not met since last meeting. C.Machine Ratings Subcommittee a.Has not met since last meeting D.SCADA/Communications Subcommittee a.Has not met since last meeting E.Maintenance Subcommittee a.Met on August 3,discussed SVS spare parts F.Budget Subcommittee a.Has not met since last meeting G.Intertie Status Report a.ML&P presented the quarter event log H.Correspondence a.AEA termination letter of October 16,2006 b.Final budget report for 2006 c.Power Engineers draft recommendations IV VISITOR COMMENTS VI DRAFT None RECESS Delayed until lunch WORK SESSION A.Dispatch Subcommittee a.Chugach has not yet received a report on the cause of the insulator failure on 6/25/06. b.GVEA reported the need to use satellite phones during recent flooding and cuts in the fiber optic cables circuits.GVEA reiterated a recommended monthly test to make sure phones work. .Reliability/Protection Subcommittee a.Alice Mullins is working on the RFP for the SVS study with EPS. .Machine Ratings Subcommittee a.GVEA reported that the 30-day acceptance test for the new North Pole combined cycle unit should occur in December 2006.Initial firing will be as soon as the fuel system is verified clean;it is currently being filtered in closed loop operation. .SCADA/Communications Subcommittee a.Evaluation of alternatives to State MW is in progress.Redundancy of fiber loops was discussed. .Maintenance Subcommittee a.MEA has completed their annual inspection and sent out a report.No significant problems were noted.GVEA reported that a source of new and rebuilt thyristors was available. .Budget Subcommittee a.It was decided to amend the budget to match the value used in the AEA spreadsheets for billing calculations (reduction of $6,000) .Upgrade/Extension of Intertie a.ML&P has signed the contract with AEA for management of the project but Assembly approval is being processed. b.AEA will send out a copy of the contract for IOC evaluation.Cost over-runs,if any,are to be paid by the utilities but the IOC cannot obligate the utilities to make these payments. .Intertie Snow Loading Problems/Best Practices a.Power Engineer's draft recommendations were distributed and discussed.The existing snow load monitoring procedure will be used this year and equipment appears to be functioning properly.' Spin -Bradley versus transmission constraints a.The Bradley Lake O&D committee reported that the 27 MW spin limit on Bradley Lake was being lifted.A discussion was held regarding the location of spin.It was decided that the Dispatch Subcommittee should develop a recommendation by the January meeting. Negotiation of anew AIA DRAFT a.AEA asked that the utilities focus on solution of the short-term issues perhaps via side agreements.The IOC cannot resolve but will bring the issue to the respective utilities. VII FORMAL OPERATING COMMITTEE ACTIONS/RECOMMENDATIONS A.Modification of FY07 Intertie Budget. -Motion 06-9:Henri Dale moved and Jim Strandberg seconded a motion to modify the FY07 budget to $2,260,696.The motion passed unanimously.A copy is attached to the minutes. VII SUBCOMMITTEE ASSIGNMENTS A.Dispatch Subcommittee a.Develop a recommendation by the January IOC meeting regarding spin and the changes in the operation of Bradley Lake. B.Reliability/Protection Subcommittee a.Make a progress report on the SVS study at the January IOC meeting. C.Budget Subcommittee a.Meet and complete a preliminary FY08 budget. Ix DETERMINE AGENDA Next meeting will be on Thursday,January 18,2007 at ML&P starting at 10:00 a.m.and will include Officer Elections. X ADJOURNMENT The meeting was adjourned at 1:25 p.m. +s be. DRAFT O00-2oo - The Toa mo d4ees Tee FYOT bude? :Mon on) Message ae Page 1 of 1 James Strandberg From:John Cooley [John_Cooley@chugachelectric.com] Sent:Friday,October 20,2006 9:20 AM To:Peery,Mark;FJBettine@matanuska.com;James Strandberg;Karl Reiche;OHare,Charles (Charlie);Steve Gilbert;Brian Hickey;DayRH@ci.anchorage.ak.us; HallDW@ci.anchorage.ak.us;hfdale@gvea.COM;John Cooley; JSchroeder@HomerElectric.com;Kevin Dunham;Luke Sliman Subject:ALASKA INTERTIE OPERATING COMMITTEE Attachments:IOC Minutes 10-19-06.doc Draft minutes from yesterday. John S.Cooley,PE Director System Control &SCADA/Communications 10/24/2006 ALASKA INTERTIE OPERATING COMMITTEE MEETING AGENDA THURSDAY,OCTOBER 19,2006 BEGIN AT 10:00 A.M. I.Adoption of prior meeting minutes A.The July 20,2005 minutes (MEA) B.The August 2,2006 minutes (teleconference) I].Approval/Modification of agenda II].Committee reports and correspondence Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee Budget Subcommittee Intertie Status Report Communications Received IV.Visitor's Comments Related to Items on Agenda V.Recess,if needed VI.Work Session A.Dispatch Subcommittee i.6/25 outage Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee Budget Subcommittee Upgrade/Extension/Repairs of Intertie (status of ML&P contract)Draft Power Engineers Report (3 Party Review) Spin-Bradley versus transmission constraints Negotiation of new AIA VI.Formal Operating Committee Actions/Recommendations VII.Subcommittee Assignments A.Dispatch Subcommittee B.Reliability/Protection Subcommittee C.Maintenance Subcommittee D.Budget Subcommittee IX.Determine Agenda for Next Meeting to be hosted by AML&P in January X.Adjournment Meeting Location:Chugach Electric Association Board Room 5601 Electron Drive Anchorage,Alaska 99518TOmMMOOW>HrrOmMmMoOOw DRAFT ALASKA INTERTIE OPERATING COMMITTEE INTERIM MEETING MINUTES TUESDAY,AUGUST 02,2006 (TELECONFERENCE) Present: Frank Bettine Alaska Electric Generation &Transmission (AEG&T/MEA) John Cooley Chugach Electric Association (Chugach)IOC Chairman Henri Dale Golden Valley Electric Association (GVEA) Doug Hall Anchorage Municipal Light &Power (AMLP) Jim Strandberg Alaska Energy Authority (AEA) Visitors: Jim Walker Matanuska Electric Association Don Zoerb Matanuska Electric Association Rick Eckert Homer Electric Association The interim meeting was called to order about 9:00 a.m.to discuss capitalized maintenance. =Foundations on towers 274 and 297 are need of repair.The committee decided to check on the latest estimate from Del LaRue. =Replacing SVC controls was estimated at $3 million.EPS is scheduled to present an updated estimate of three options to replace/upgrade the SVC systems. The meeting was recessed about 9:30 a.m.to give committee members time to think about the issues and get feedback from the Maintenance Subcommittee,which was scheduled to meet on the following day.The meeting was scheduled to resume at 10:00 a.m.on Tuesday,August 08,2006. TUESDAY,AUGUST 08,2006 Present: Frank Bettine Alaska Electric Generation &Transmission (AEG&T/MEA) Mark Peery Alaska Electric Generation &Transmission (AEG&T/HEA) John Cooley Chugach Electric Association (Chugach)-IOC Chairman Henri Dale Golden Valley Electric Association (GVEA) Doug Hall Anchorage Municipal Light &Power (AMLP) Jim Strandberg Alaska Energy Authority (AEA) Visitors: Jim Walker Matanuska Electric Association The interim meeting was called back to order about 10:05 a.m. =Del LaRue's estimate of $650,00 for each foundation for towers 274 and 297 was preliminary and for complete tower and foundation replacement.MEA will issue a contract to Dryden and LaRue for preliminary design and revised costs DRAFT estimates for these towers.The FY07 Alaska Intertie budget includes a $25,000 line item for this design. «The committee discussed the three options for Replacement/Upgrade of the SVC systems as forwarded by the Maintenance Subcommittee from EPS.The subcommittee did not recommend one of the options.The committee consensus was to obtain funding for option 3 but not to commit to spending the money pending the results of system studies to be contracted by Chugach as a line item in the FY07 Intertie budget. FORMAL OPERATING COMMITTEE ACTIONS/RECOMMENDATIONS -Adopt IOC Motion 2006-8:Jim Strandberg moved and Henri Dale seconded the motion.Following minor modification to the wording the motion passed with 4 yes votes and 1 no vote.A copy is attached to the minutes. -AEA indicated that within a couple of weeks they will forward the management agreement between ML&P and AEA for the construction of Intertie from Douglas to Teeland to the IOC for concurrence.The Chairman will be on vacation,so the Vice Chair,Henri Dale,will call a meeting to discuss the contract when it is available. ADJOURNMENT The meeting was adjourned at 11:58 a.m. DRAFT IOC Motion 2006-8 WHEREAS,maintaining the Alaska Intertie in good working condition within practical and cost constraints benefits all Participants;and WHEREAS,the foundations of towers 274 and 297 are in need of repair as identified by the IOC's Maintenance Subcommittee (Maintenance Subcommittee)which hired Dryden &LaRue,Inc.to provide a cost estimate ($650,000)for each foundation;and WHEREAS,the Maintenance Subcommittee has recommended that the SVC systems at Goldhill,Healy and Teeland should be upgraded due to the lack of spare parts and support for the existing systems because of shifts in the industry to newer technologies. The Subcommittee hired EPS,Inc.to provide specifications and cost estimates for three upgrade options. NOW THEREFORE BE IT RESOLVED,that the IOC finds that the following maintenance actions are of direct benefit to other or all Participants under Sections 8.1 and 7.4.3 of the Alaska Intertie Agreement: 1,Repair the foundations of towers 274 and 297 at an estimated cost of $1.3 million and 2.Replacement/Upgrade the SVC systems by replacing the controls,relaying and thyristors at an estimated cost of $7.6 million.This SVC work should be adjusted as recommended by the systems studies funded in the F Y07 budget, which are to be completed this fiscal year. | NOW THEREFORE BE IT FURTHER RESOLVED,that under Sections 7.4.2 and 7.4.3 of the Alaska Intertie Agreement,the costs of these improvements shall be shared by all Utility Participants in allocations specified in Article 8 of the Alaska Intertie Agreement, including both the Intertie Energy Rate and the Intertie Capacity Rate based on each Utility Participant's MITCR. NOW THEREFORE BE IT FURTHER RESOLVED,that the IOC recommends that the Participant General Managers working with the Executive Director of the Alaska Energy Authority or his delegate,develop a financing plan to amortize the costs of the upgrades or repairs over an appropriate time not to exceed their expected lifetimes. Participants'votes: Golden Valley Yes -Henri Dale Chugach Yes -John Cooley AML&P Yes -Doug Hall AEG&T No -Frank Bettine AEA Yes --Jim Strandberg Dated August 8,2006 IOC QUARTERLY RELIABILITY REPORT 10/18/2006 _ 01/01/2006 §=TO 12/31/2006 PART 2:EVENT SUMMARYMEP Service with Energy Event Date/Time Duration Description Freq Intertie Kenai UnitLine BESS Silos Load Comments Num extreme opened opened Trip Trip Shed 247 01/26/2006 05:12:00 2.3 HLP #1 trips off line 59.98 x 0.0 0.0 1.1 248 01/26/2006 08:30:00 0.8 HLP #1 trips off line again 59.91 Xx 2.5 0.0 0.0 249 01/26/2006 11:01:00 0.4 HLP #1 trips off line again 59.92 xX 15.8 0.0 0.0 250 02/25/2006 07:26:12 1.2 Beluga #3 tripped -bearing vibration 59.78 xX 0.0 0.0 0.0 251 03/30/2006 20:12:04 10.0 Bradley #2 tripped off line -fault on 59.56 xX 0.0 5.7 0.0 Peninsula caused oscillation 252 04/17/2006 18:44:09 2.7 AMLP Unit #7 Tripped -Vibration 59.52 xX 3.8 0.0 0.0 Sensor 253 04/17/2006 19:48:51 1.4.AMLP Unit #7 -2nd Trip vibration 59.79 X 3.0 0.0 0.0 Sensor 254 04/17/2006 21:02:49 1.2 AMLP Unit #7 -3rd Trip -Vibration 59.76 x 3.1 0.0 0.0 Sensor 255 04/26/2006 15:09:41 0.7 Aurora #5 trip 59.86 X 16.7 0.0 0.0 trip due to vapor extraction pump valving-BES activates 256 04/29/2006 17:29:34 0.7 GHSB3-FWSB9 69kv relay open-59.95 xX 0.0 0.0 0.0 GV looses CPS,IAS,PGS,and SFS customer cuts tree into subs. 69kv-12.47kv systems 257 05/05/2006 11:38:58 15.4 Kenai-Univ-Daves Crk 115kV line,59.85 xX 0.0 0.0 0.0 tree on line near Indian Tap 258 05/28/2006 10:49:33 0.2 HLP #1 trip-Steam Tube leak 59.89 xX 8.1 0.0 0.0 259 06/22/2006 09:00:34 1.4 AMLP Unit #5 Trip -High Exhaust 59.76 Xx 3.0 0.0 0.0 Gas Temp 260 06/25/2006 10:41:46 4.9 HLP #1 trip-relay tbl.59.35 xX 31.5 0.0 60.8 main and transfer buss clears 261 06/28/2006 10:34:40 12.1 Beluga Unit #6 tripped -auxiliary 59.40 X 22.9 0.0 0.0 alarm *has sub event Event Date/Time Duration Description Freq Intertie Kenai UnitLine BESS Silos Load Comments Num extreme opened opened -Trip Trip Shed 262 *06/25/2006 21:09:00 16.4 230 kV fault -Pt Mac to ML&P 230 0.00 X X 14.8 0.0 54.1 **due to system failure,not all data recorded** 263 07/14/2006 09:03:58 9.1 Bradley Lake Unit1 tripped -59.61 x 4.0 0.0 0.5 governor failure 264 08/08/2006 10:10:51 9.8 Nikiski unit tripped off line -operator 59.70 Xx 4.2 0.0 0.8 error 266 08/14/2006 01:36:43 4.2 Beluga #5 tripped off line,faulty 59.64 X 0.0 0.0 0.0 vibration probe 267 08/15/2006 18:57:25 2.4 Pt.Mac to Beluga,line 3 tripped -60.00 X 0.0 0.0 0.0 tower 20/6 fell into the Susitna River 268 08/17/2006 10:41:43 2.4 Bradley #1 tripped -wiring error 59.47 xX 14.2 0.0 0.8 from governor installation 269 07/15/2006 10:53:08 10.5 Douglas 138-B1 Tripped -B phase 60.49 x 31.5 0.0 15.2 to ground -suspect lightning 270 08/27/2006 20:17:53 8.6 Brkrs 538,B5110 and B1 Opened -60.55 X xX 30.6 0.0 27.4 A phase time overcurrent between Dgls and Tind Near Tower 72 - Suspect Lightning 271 =-09/18/2006 11:33:42 10.3 Intertie tripped -Teeland 538 and 60.55 xX xX 30.9 0.0 15.3 Douglas 138-B1 -wW/67MW - Teeland Schweitzer indicates 25.5 mi A-Phase to Ground 272 09/07/2006 10:00:01 11.2 Beluga #7 tripped -station service 59.38 X 2.6 0.0 0.0 tie-breaker interlock timer failed 273 =09/12/2006 19:45:44 4.6 Bradley #2 Load Reject 15 MW-59.92 X 1.3 0.0 0.0 testing 274 09/12/2006 19:56:32 1.1 Bradley #2 Load Reject 30 MW-59.85 xX 2.2 0.0 0.0 testing 275 08/24/2006 17:23:05 4.8 HLP #1 trip 59.84 0.0 0.0 0.0 Trip occured during HLP test run 276 09/24/2006 19:21:22 0.6 Beluga Unit 8 tripped -bypasses 59.76 0.0 0.0 0.0 opened on both boilers,#1 down level shot up 277 =09/13/2006 19:25:08 11.1.Bradley #1 tripped -governor testing 59.77 2.2 0.0 0.0 278 09/13/2006 19:41:16 1.2 Bradley #1 tripped -governor testing 59.72 3.0 0.0 0.0 *has sub event * Event Date/Time Duration Description Freq Intertie Kenai UnitLine BESS Silos Load Comments Num extreme opened opened Trip Trip Shed 279 10/14/2006 03:46:43 0.8 AMLP Unit #5 Tripped -High Oil 59.79 x 0.0 0.0 0.0 Temp 280 10/18/2006 08:02:08 1.8 AMLP Scheduling error 59.77 x 0.7 0.0 1.1 Average Duration has sub event 5.04 a"Message Ata Whe,Yrje lat o>Page 1 of1 4 a Karl Reiche From:John Cooley [John_Cooley@chugachelectric.com] Sent:Thursday,April 27,2006 9:46 AM To:Peery,Mark;FJBettine@matanuska.com;Karl Reiche;OHare,Charles (Charlie);Steve Gilbert;Brian Hickey;DayRH@ci.anchorage.ak.us;Ed Jenkin;HallDW@ci.anchorage.ak.us; hfdale@gvea.COM;John Cooley;JSchroeder@HomerElectric.com;kevin dunham;Luke Sliman Ce:Karl Reiche Subject:Draft minutes 11/16/05 Attachments:IOC Minutes 11-16-05.doc Attached are draft minutes for the 11/16/05 interim meeting. John S.Cooley,PE Director Power Control 4/27/2006 DRAFT ALASKA INTERTIE OPERATING COMMITTEE INTERIM MEETING MINUTES WEDNESDAY NOVEMBER 16,2005 (ALASKA ENERGY AUTHORITY CONFERENCE ROOM) Present: Frank Bettine Alaska Electric Generation &Transmission (AEG&T/MEA) John Cooley Chugach Electric Association (Chugach) Henri Dale Golden Valley Electric Association (GVEA)-IOC Chairman Doug Hall Anchorage Municipal Light &Power (AMLP) Bernie Smith Alaska Energy Authority (AEA) Visitors: Brain Bjorkquist SOA Dept of Law Tuckerman Babcock Matanuska Electric Association Becky Gay Alaska Energy Authority (AEA) Del LaRue Dryden &LaRue Mike Pauley Matanuska Electric Association Karl Reiche Alaska Energy Authority (AEA) Paul Williams Dryden &LaRue The interim meeting was called to order about 1:30 p.m.to discuss two topics. VI vil WORK SESSION A.Intertie Snow Loading Problems/Best Practices -The committee extensively discussed the snow load monitoring procedure and agreed to de-energize the Intertie as soon as practical consistent with prudent utility and scheduling procedures following an alarm.Under normal conditions this takes one to two hours. B.Intertie Contract Adherence Discussion -The committee started to complete a spreadsheet showing the various sections of the Alaska Intertie Agreement that required changes or were not being followed.One point of contention was whether the Agreement could be amended or should be terminated.The committee agreed to try to better follow the procedures in the Agreement where possible.The discussion was continued until the next regular meeting. FORMAL OPERATING COMMITTEE ACTIONS/RECOMMENDATIONS A.Adopt Snow Load Monitoring Procedure -Motion 06-4:Henri Dale moved and Bernie Smith seconded a motion to adopt the November 16,2005 procedure.The motion passed unanimously.A copy is attached to the minutes. -Motion 06-5 Doug Hall moved and Bernie Smith seconded a motion to sunset the new procedure on May 1,2006.The motion failed with three yes and two no votes,AEA and AEG&T voted no. ADJOURNMENT The meeting was adjourned at 4:00 p.m. DRAFT November 16,2005 SNOW LOAD MONITORING PROCEDURE The Snow Load Monitoring System (SLMS)operates continuously for the purpose of advising the Souther Controller of weather conditions that may cause snow to load on the conductors of the Alaska Intertie.This condition creates the possibility that conductors will unload unevenly which may then lead to conductor unbalance that possibly may then lead to conductor clearance problems.A Patrol Contractor will be retained as part of the Snow Load Monitoring Procedure. The computer system is supplemented by a Patrol Contractor who performs line patrols at the direction of the Southern Controller or after any snowfall of more that 2”over 24 hours measured at the Susitna High School or the Talkeetna Airport unless the Southern Controller determines that a patrol is impracticable.The Patrol Contractor will check and report to the Southern Controller and Alaska Energy Authority by e-mail daily. There is a definitive sequence of events that must occur in order to create clearance problems along the Alaska Intertie.As determined by analysis of previous line models, the weight on the insulator string must increase by an average minimum of 1407 lbs of snow (over the bare conductor weight)must first accumulate on the conductors in a number of spans to create the possibility for clearance problems which will trigger an alarm on the SLMS.Then the snow must unload from a number of spans but not from all the spans.This creates a situation that may or may not cause a ground clearance problem. If the SLMS indicates the Intertie has one or more Joad cells in alarm the Southern Controller shall (1)advise all Intertie participants of the conditions,and (2)immediately initiate de-energizing the Intertie,consistent with prudent utility practices.Under normal circumstances,it is anticipated that the Intertie would be de-energized within 2 hours after a load cel]alarm.The Intertie will remain de-energized until a patrol is completed and itis determined that there is no conductor clearance problem. GVEA Henti Dale )Paem a A ML&P Doug Hal! CEA John CooleyAEG&T Frank Bettine ftiztee OAEA"Bemie Smith __ence LE ALAR Mh winK+="AIDEN =ALASKASXAlaskaIndustrialDevelopmentWrAleExportAuthority (7 | April 18,2006 Mr.John Cooley Chugach Electric Association,Inc. Chairman,Intertie Operating Committee P.O Box 196300 Anchorage,Alaska 99519-6300 Re:Voting Designation Letter Dear John: Karl Reiche,the AEA representative for the Intertie Operating Committee,will be unavailable to attend the April 20,2006 meeting.|am appointing Bryan Carey to attend and vote in Mr. Reiche's absence.If you have any questions,please call me at (907)269-3000. Sing¢rely, oft Miller Executive Director Alaska Energy Authority RM/sh H:\al\S Howell\lOC\Woting aCC:Karl Reiche,AEA Bryan Carey,AEA Brian Bjorkquist,Department of Law Henri Dale,Golden Valley Electric Association 813 West Northern Lights Boulevard *Anchorage,Alaska 99503-2495 www.aidea.org *907/269-3000 *FAX 907/269-3044 ®Toll Free (Alaska Only)888/300-8534 ©www.akenergyauthority.org IOC mtg @GVEA loc Wt,"4/22 [00 Page1of1 Karl Reiche From:John Cooley [John_Cooley@chugachelectric.com] Sent:Thursday,April 13,2006 12:17 PM To:HallDW@ci.anchorage.ak.us;FJBettine@matanuska.com;Kari Reiche;hfdale@gvea.COM; Peery,Mark Cc:Brian Hickey;OHare,Charles (Charlie) Subject:10C mtg @GVEA Attachments:IOC mtg @GVEA When:Thursday,April 20,2006 8:30 AM-2:00 PM (GMT-09:00)Alaska. Where:GVEA headquarters De PP <<IOC Agenda 4-20-06.doc>> 4/14/2006 [OL Mh ¢feo (er Karl sxiche From:Brian Bjorkquist [Brian_Bjorkquist@law.state.ak.us] Sent:Friday,April 14,2006 9:54 AM To:Bryan Carey;Karl Reiche Cc:Ron MillerSubject:RE:FW:1OC mtg @GVEA Thanks,this time the agenda made it to my computer. I don't see anything in the agenda that would require my participation. Let me know if anyone sees this differently. Bryan,two heads-ups before the meeting. First,you probably should talk to Chris Rutz before going to get an update on the bypass project.Chris has been working with Lou Agi (ML&P attorney)on the contract,and it may be ready for distribution by next Thursday. Second,you should be aware that Ron will be inviting GM's to a meeting to discuss Ak Intertie Agreement problems (I think that will be in the next couple weeks -possibly April 20 when the IOC meets).This is informational only -the IOC worked on a list of agreement problems,so the topic may come up in the context that others are dealing with it,and you should just be aware of that. Brian P.S.I'm sure Mark Schimsheimer,Dennis McCrohan and others (myself included)will be interested in what you observe visiting the GVEA North Pole generation plant,and how close it is to completion.We have been hearing stories about construction problems,etc. >>>Bryan Carey <bcarey@aidea.org>4/13/2006 4:22:17 PM >>> Bryan E Carey,P.E. Project Manager,Rural Energy Group Alaska Energy Authority (907)269-4688 -----Original Message----- From:Brian Bjorkquist [mailto:Brian Bjorkquist@law.state.ak.us] Sent:Thursday,April 13,2006 1:19 PM To:Bryan Carey;Karl Reiche Cc:Ron Miller Subject:Re:FW:IOC mtg @GVEA If the agenda was attached to your e-mail (the "ics"document),I could not open it.Please send it in word or pdf. >>>Karl Reiche <kreiche@aidea.org>4/13/2006 12:54:22 PM >>> FYI,also the agenda is tucked away in the attached meeting announcement.I 1 will be leaving Tuesday 4/18/06.Bryan Carey has giauviously agreed to step in._- From:John Cooley [mailto:John_Cooley@chugachelectric.com] Sent:Thursday,April 13,2006 12:17 PM To:HallDW@ci.anchorage.ak.us;FJBettine@matanuska.com;Karl Reiche; hfdale@gvea.COM;Peery,Mark Cc:Brian Hickey;OHare,Charles (Charlie) Subject:IOC mtg @GVEA When:Thursday,April 20,2006 8:30 AM-2:00 PM (GMT-09:00)Alaska. Where:GVEA headquarters KAKA KK KA KA KN KAKA <<IOC Agenda 4-20-06.doc>> IV. VI. VIL Vill. IX. X. XI. Te Brien @ jor kg eisl ALASKA INTERTIE OPERATING COMMITTEE MEETING AGENDA THURSDAY,APRIL 20,2006 BEGIN AT 8:30 A.M. Adoption of prior meeting minutes A.The June 21,2005 minutes (MEA) B.The November 16,2005 interim minutes (AIDEA) C.The November 30,2005 interim minutes (teleconf) D.The January 19,2006 minutes (ML&P) .Approval/Modification of agenda I.Committee reports and correspondence Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee Budget Subcommittee Intertie Status Report Communications Received Visitor's Comments Related to Items on Agenda Recess,if needed Work Session Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee Budget Subcommittee .Upgrade/Extension/Repairs of IntertieFormalOperatingCommitteeActions/Recommendations Subcommittee Assignments Dispatch Subcommittee Reliability/Protection Subcommittee Machine Ratings Subcommittee SCADA/Metering/Communications Subcommittee Maintenance Subcommittee Budget SubcommitteeDetermineAgendaforNextMeeting to be hosted by AEG&Tin July Adjournment Tour of new GVEA North Pole generation facilityHOmMOOWDQAmAMOOWpSAMUOWD Meeting Location:Golden Valley Electric Association Nerland Conference Room 758 Illinois Avenue Fairbanks,Alaska 99707 a fENY Alaska Enargy Authority FAX COVER SHEET To:John Cooley (CEA)762-4540 From:Shellie Helton,Accountant,AEA Frank Bettine (MEA)1-907-761-9322 907-269-3023 Mark Peery (HEA)1-907-283-7122 Henri Dale (GVEA)hfdale@gvea.com Doug Hall (MLP)263-5349 CC:Karl Reiche (AIDEA) Brenda Applegate (AIDEA) Pages:SIX (6)Date:04/11/06 Re:Alaska {ntertie Budget Status Report DO Original to follow by mail ©Comments: Attached are the current FY2006 Alaska Intertie Revenue Variance and Budget Status Reports. Revenues and Expenses are based on actuals through 03/31/06,unless otherwise noted. An Alaska Intertie (Static Var Sys)Trust Fund Report as of 03/31/06 is also attached. " og 8s,O A Ce prardaayKAASOARMSSeon. *OAK ws _Q OoSX«.ek Beek MIESKE 4 codaeDron©arden CO: .o-Wc 813 WEST NORTHERN LIGHTS BOULEVARD *ANCHORAGE,ALASKA 99503 907 /269-3000 »FAX 907 /269-3044 »www.aldea.org TOLL FREE (ALASKA ONLY)888 /300-8534 H:\aliishelton\PJ-AFAFYOG\FAX cover letter.doc ALASKA INTERTIE ALASKA INTERTIE REVENUE VARIANCE REPORT MWH ACTUAL USAGE Jul-05 Aug-05 Sep-05 Nov-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 MWH MWH MWH MWH MWH 41,745 42,829 41(304oeTOESSBIydEReaAE ACTUAL REVENUES eer emertreenns Jul-05 ae Sep-05 egies Nov-05 Dec-05 Jun-06 TOTALRatepepMWwH=GES ESS SLAS FeOLEO TAOeAeSOARS: GVEA Energy Charges ©$156,126 $160,180 $160,199 $182,531 $154,466 $190,231 §201,047 $178,652 $-§-$-$-$1,383,433GVEACapacityCharges_$_179,200 $179,200 YTD Actuals $335,326 $495,507 $655,106 §830,237 §992,702 $1,182,034 $1,383,981 $1,562,633 §1,562,633 §1,562,633 §1,562,633 §1,002,633 $1,562,633 Tae 4,BOAOOM SEOLOISSs:(112,560)92(273,307)5S (AbiTOT)+97(098,70lattes nee=2YTDVariances:ees $244,006 $5 3206782$x 6 4862:2p §8228;102:;$22 50,034: MLP Energy Charges $§$-§$-§-§-°§-§$-§$-§$-§-§$-§$-§ MLP Capacity Charges $46,592 §46,592 YTD Actuais $46,592 $46,592 $46,592 $46,592 cn 46,592 $46,592 $46,592 §46,592 $46,592 scYIDVariance eaeest at PeaceRenek coos een fue BB A§pie Eas SESE EEAHe Oe eyaNeeOES CEA Energy Charges $-§-§$-§-$-$-§$-§$-§$-§$-§-§-§ CEA Capacity Charges $72,704 7 $72,704 YTD Actuals $72,104 $fe,104 $72,104 $£2,f04 s 72,104 $72,704 $72,704 §$£2,704 $72,704 S_2,704 $72,704 $72,F04SSESRES"eYTD-Variance AEG&T Energy Charges $-$-$221 $-$.$1,219 §$206 $426 $-§$-§-$-$2,072 AEG&T Capacity Charges $59,648 $59,648 61,088 $51,720 $$61,720 $61,720YTDActuals559,86S $61,294 §61,720 §$61,720 §$61,720EVIDVariance"5202) TOTAL ENERGY CHARGES $156,126 $160,180 $160,420 $182,531 §$154,466 $191,451 $201,253 $179,079 $-$-$-$-$1,385,605 TOTAL CAPACITY CHARGES $358,144 $-$-$-$-$-$-$-$:$:$-$-$358,144STTOUT§1,749,649 $1,745,049 $1,745,049 _S 7743,049 91,745,049S82157S(112,365).§(273,185),$..(414,565)-$(998,565) Helalfisholion\PAFIFYOS\FYOGAKLXLS -Rev Var Rort 0331-06 ALASKA INTERTIE ALASKA INTERTIE REVENUE VARIANCE REPORT MWH PROJECTIONS Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 TOTAL MWH MWH MWH MWH MWH MWH MWH MWH 47,000 35,000 45,000 51,000 43,000 530,000510,000 2555 Eg.ee ase 47,000 52,000 35,000 45,500 42,000 54 000 52,000 (23 000175000See210,z FINE 'T297 800 mew948S00 400,500 BUDGETED REVENUES is Jul-05 __Aug-05 __Sep-05 Oct-05 Se eaT ween Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 TOTAL 'BudgetedRateper MWHS S37.es 40 Gee ona UaonPOT 40cebe.2 Sa TAOSGeWino TAU a Oe Os 0 RSSOTA:SEAO GVEA Energy Charges $142,120 $142,120 $175,780 $194,480 $130,900 $168300 $157,080 $190,740 $194,480 $160,820 $138,380 $187,000 $1,982,200 GVEA Capacity Charges $179,200 oe _.SERENE $179,200321,520»465 440069)(Oa0e TOOT $5,964,600$.1132,900$1,209,980-2.$.1,480,72056 9.1,61 5,200"+$1,836,020.26511974,400;.$32,161,400559 2,161,400: MLP Energy Charges $-$-$-$-$-$-$-$-$-$-$-$-$- MLPPely Charges $46,592 5 _..oe.__ $46,592 TS PEAG BOTLG SACSIS NSFAGS02.0,DODGE $e AG DOD SAG,DOD ©SAG,O92 GAGDOD Op 46,502,,9.%e 46,092 ig aU GEeE AG DID $2 46,592; CEA Energy Charges $-$-$-$-$-$-$-$-$-$-$-$-$- CEA Capacity Charges $72,704 _.; $72,704 =NAIDZ :ITZ10S ES 12.1OA SseLOAD PaO D ede,%23704 Ege 204 58"re [ZAOE EG E12,108$12,104 2G eedOAS AEG&T Energy Charges $$-$--§-§$-§-§$-§-$1,870 pet $_59,64648 $59,648AEG&T Gapacty ChargesEOVAD:PEO1 109 OL 5102 Set Ol Ole eS.01,518:sat teen TOTAL ENERGY CHARGES $142,120 $142,120 $175,780 $194,480 $130,900 $170,170 $157,080 $190,740 $194,480 $160,820 $138,380 $187,000 $1,984,070 TOTAL CAPACITY CHARGES $358,144 $-§-_$_$-__$-__§$-__$-$ ---__$358,144 SYVID:500,2642.$642 Sas SMOOAGSST012,RSLSG45,BALEST SISTAT C$1 ATO,TOFST 661bod81B56014.SSAIEES 2547 2142 Hilaishelton\PJ-AFIWFYOS\FYOGAKI.XLS -Rev Var Rort 03-31-06 ALASKA _INTERTIE FY06 APPROVED thru 02/06 +FY06 Capacity thru 02/06 +FY06 Capacity thru 02/06 +FY06 Capacitythru02/06 +FY06 Capacity gvea maint thru 12/05 thru 02/06 thru 2/06 thru 2/4/08 thru 10/06 thru 02/06 thru 12/08 BUDGET STATUS REPORT BUDGET BUDGET ACTUALS OVER FY2006 @ 03/31/06 @ 03/31/06 (UNDER) REVENUES GVEA 2,161,400.00 |1,621,050.00 |1,562,633.48 (58,416.52) MLP 46,592.00 34,944.00 46,592.00 11,648.00 CEA 72,704.00 54,528.00 72,704.00 18,176.00 AEGT 61,518.00 46,138.50 61,719.96 15,581.46 INTEREST --27,690.92 27,690.92 TOTAL REVENUES 2,342,214.00 |1,756,660.50 |1,771,340.36 14,679.86 EXPENSES FERC 561 -Load Dispatching GVEA Northern Controller |---- ML&P Southern Controller ---- FERC 5682 -Station Operation Expenses GVEA-substation electricity usage 8,000.00 6,000.00 5,233.64 (766.38) 8,000.00 6,000.00 5,233.64 (766.36) FERC 563 -Overhead Line Expenses GVEA -Weather monitoring equipment 220,000.00 165,000.00 153,156.00 (11,844.00) 220,000.00 165,000.00 153,156.00 (11,844.00) FERC 565 -Transmission of elect.by others MEA Wheeling -Holly Rd to Douglas 244,030.00 183,022.50 170,154.92 (12,867.58) 244,030.00 183,022.50 170,154.92 (12,867.58) FERC 566 -Misc.transmission expense SCADA &voice circuits (SOA)234,000.00 175,500.00 175,656.99 156.99 Mat-Su Conditional Us Permit -- Cell phones for weather monitoring 10,000.00 7,500.00 2,829.24 (4,670.76) PV Panel Installation 50,000.00 37,500.00 -(37,500.00) Weather Monitoring Support Contract (03-107#1)60,000.00 45,000.00 29,950.00 (15,050.00) Weather Monitoring Battery Changeout(03-107#2)30,000.00 22,500.00 -(22,500.00) Intertie Ground Safety Patrol(03-108#4)50,000.00 37,500.00 18,470.99 (19,029.01) SLMS upgrades 30,000.00 22,500.00 -(22,500.00) Intertie Mitigation (3rd Party Review)35,000.00 26,250.00 34,405.15 8,155.15 jth 206 499,000.00 374,250.00 261,312.37 (112,937.63) FERC 567 -Transmission Expenses -Rents Rents -Alaska Railroad 600.00 450.00 400.00 (50.00) MEA-Talkeetna Storage 7,200.00 5,400.00 4,800.00 (600.00) 7,800.00 5,850.00 5,200.00 (650.00) FERC 570 -Maintenance of station equip. GVEA -Healy Cantwell,Goldhill 100,250.00 75,187.50 12,395.44 (62,792.06) H:talshelton\PU-AFFY O6\FYOGAKI.XLS -03-31-06 pg 1of2 ALASKA _INTERTIE FY06 APPROVED BUDGET STATUS REPORT BUDGET BUDGET ACTUALS OVER FY2006 @ 03/31/06 @ 03/31/06 (UNDER) CEA Teeland Substation 46,500.00 34,875.00 14,536.92 (20,338.08) CEA Douglass -Teeland Relay 19,000.00 14,250.00 -(14,250.00) SVC Repair ---- One-time savings account for SVC's (53,563.00)(40,172.25)-40,172.25 MEA-Douglas substation 5,000.00 3,750.00 65.61 (3,684.39) 117,187.00 87,890.25 26,997.97 (60,892.28) FERC §71 -Maintenance of O/H lines GVEA Northem Maintenance 82,193.00 61,644.75 873.44 (60,771.31) MEA Southem Maintenance 60,000.00 45,000.00 10,932.35 (34,067.65) MEA-Landing Pads --- GVEA-Landing Pads 30,000.00 22,500.00 -(22,500.00) GVEA-Adjust Guys 24,000.00 18,000.00 -(18,000.00) GVEA-Northem ROW clearing 24,000.00 18,000.00 -(18,000.00) MEA-Tower Repair ---- GVEA -Repair tower 250,000.00 187,500.00 31,545.90 (155,954.10) MEA-Southern ROW clearing 287,000.00 215,250.00 -(215,250.00) 757,193.00 567,894.75 43,351.69 (524,543.06) FERC 920 -AEA Administrative Costs Personal Services,travel and other costs 70,000.00 52,500.00 73,210.00 20,710.00 70,000.00 52,500.00 73,210.00 20,710.00 FERC 920 -10C Administrative Costs Legal Expenses --:- FERC 924 -Property Insurance AF Intertie -Insurance 200,000.00 200,000.00 198,730.50 (1,269.50) Risk Management Fee 3,000.00 2,250.00 -(2,250.00) Insurance Risk assessment 50,000.00 37,500.00 -(37,500.00) 253,000.00 239,750.00 198,730.50 (41,019.50) TOTAL EXPENSE 2,176,210.00 |1,682,157.50 937,347.09 (744,810.41) SURPLUS (SHORTAGE)166,004.00 74,503.00 833,993.27 759,490.27 .H:\atishelton\PU-AFIFYOS\FYO6AKI.XLS -03-31-06 thru 2/06 thru 2/06 thru 12/05 thru 02/06 thru 12/05 thru 2/06 thru 06/06 pg 20f2 ITF ALASKA INTERTIE TRUST FUND Key Bank Trust Acct #0698481 STATUS REPORT AS OF 03/31/06 . BEGINNING BALANCE AS OF 12/31/06 $54,738.53 INTEREST $575.01 DISBURSEMENTS $- ENDING BALANCE AS OF 03/31/06 iS)55,313.54 History: The ITF Alaska Intertie Svcs Fund was setup to account for a trust account that AIDEA is custodian of for the benefit of the Utilities involved in the Alaska Intertie Project.This Trust Account is for the purpose of paying for expenses related to the Static Var System..The account is held at Key Bank.Any disbursements will be requested from the operating committee or the Utilities.No trust fee is charge to the account because AIDEA has a blanket trust fee agreement with Key Bank for all accounts held by Key Bank.This trust fund will last as long as the operating committee requires it. ITF-AkIntertieSvcFund.xls 03-31-06 Alaska Indu3trial Development and Expo ority Alaska Energy Authority August 17,2005 Mr.Bradley P.Janorschke General Manager Homer Electric Association,Inc. 3977 Lake Street Homer,Alaska 99603 Fax:(907)235-3323 Mr.Dave Calvert Utility Manager City of Seward P.O.Box 167 Seward,Alaska 99664 Fax:(907)224-4085 Mr.Jim Posey General Manager Anchorage Municipal Light &Power 1200 East First Avenue Anchorage,Alaska 99501 Fax:(907)263-5204 RE:July 21,2005 IOC Meeting Transcript Mr.Joe Griffith Chief Executive Officer Chugach Electric Association,Inc. P.O.Box 196300 Anchorage,Alaska 99519-6300 Fax:(907)562-0027 Mr.Steve Haagenson President &Chief Executive Officer Golden Valley Electric Association,Inc. P.O.Box 71249 Fairbanks,Alaska 99707-1249 Fax:(907)458-5951 Mr.Wayne Carmony General Manager Matanuska Electric Association,Inc.and Alaska Electric Generation and Transmission Cooperative,Inc. P.O.Box 2929 Palmer,Alaska 99645 Fax:(907)761-9349 July 22,2005 Alaska Intertie Work Session Transcript Alaska Intertie Repairs Financing Scenarios Gentlemen: Enclosed for your information: 1.Transcript of the July 21,2005 IOC meeting at Matanuska Electric Association; 2.Transcript of the July 22,2005 Alaska Intertie Work Session;and3.Alaska Intertie Repairs Financing Scenarios. The recording of the 1|OC meeting on July 21,2005 was not of the best quality so there are some textual gaps in the transcript,but the substance of the discussions was recorded.The Intertie Repair Financing Scenarios include bond and loan financing of $3,$5,and $7 million over periods of 7,15 and 20 years.A summary table of these scenarios is provided as a cover sheet for the detailed analyses.The table also lists the assumptions for the loan and Bond 813 West Northern Lights Boulevard *Anchorage,Alaska 99503 907 /269-3000 *FAX 907 /269-3044 *Toll Free (ALASKA ONLY)888 /300-8534 *www.aidea.org ™® ”August 17,2005 Page 2 analyses.Please call Bernie Smith at 269-4643 if you have questions regarding the transcripts and Valorie Walker at 269-3011 for questions on the financing scenarios. n Mille xecutive Director RWM:bjmf H:\AEA Projects\Alaska Intertie Project\Correspondence\GM2005-02.doc cc:Valorie Walker,Deputy Director-Finance Bernie Smith,Project Manager Transcript of the Alaska Intertie Work Session July 22,2005 @ 10:00 a.m. Alaska Industrial Development and Export Authority Boardroom Anchorage,Alaska Attendees: Mike Barry,Chairman,AIDEA and AEA Mark Davis,DCCED Ron Miller,Executive Director AIDEA and AEA Brenda Fuglestad,AIDEA and AEA Karl Reiche,AIDEA and AEA Bernie Smith,AIDEA and AEA Brian Bjorkquist,Department of Law Joe Griffith,Chugach Electric Association Steve Haagenson,Golden Valley electric Association Jim Posey,Municipal Light &Power Doug Hall,Municipal Light &Power Ron Saxton,Ater Wynne Don Zoerb,Matanuska Electric Association Jim Walker,Matanuska Electric Association Frank Bettine,Matanuska Electric Association Rick Schikora,Golden Valley Electric Association Brad Evans,Chugach Electric Association Tim Barnum,City of Seward Rick Eckert,Homer Electric Association Convened:10:05 a.m. RON MILLER:We're going to keep a record of this meeting for our Board of Directors.For those who don't know Mark Davis has joined us and he is the designee from the Department of Commerce,Community and Economic Development.He is Director of Banking and Securities. Three of the General Managers from the utilities requested a work session prior to the AIDEA and AEA board meeting,after we sent our invitation.The topics for this work session are those set out in that June 24,2005 invitation,which are issues related to the Intertie Operating Agreement;no R&R fund or capital fund to finance major maintenance or upgrades;defermentofneededrepairs;lackof compliance with the Agreement's terms and conditions;and we also indicated that we are willing to discuss any concerns or other issues the railbelt utilities wanted to raise.As |said,the General Managers requested this meeting so we will open the floor for the discussion of issues,concerns,problems,and solutions. JOE GRIFFITH:|guess we'd like to hear what are your issues that you reference in the letter. RON MILLER:Starting out,no R&R fund or other capital fund to finance major maintenance or upgrades,we can start with that. JOE GRIFFITH:Okay,what else? Alaska Intertie Meeting Page 2 of 21 July 22,2005 RON MILLER:Deferment of needed repairs.We can start with those two and then move on. RICK SCHIKORA:What else do you have on your list? RON MILLER:Well... STEVE HAAGENSON:He said lack of compliance or something. RICK SCHIKORA:Let's get the list all out on the table. RON MILLER:The Agreement's terms and conditions.We have been talking about needed repairs for nearly three years and we have not seen any movement to make those repairs or fund those repairs and our Board is pretty concerned about being stuck with liability for a line that is in serious need of upgrades and repairs.What we have heard through the IOC and other sources is that the railbelt utilities cannot understand why we are raising these issues and these seem to be staff issues but |asked our Chairman and Mr.Davis here so the utilities could hear first hand from Board Members that this is a Board issue,it is not a staff issue.That is one of the reasons we had it on the agenda for the Board Meeting for next Monday. JOE GRIFFITH:But there is no list,no agenda for the board meeting?At least we haven't seen one if there is. BRENDA FUGLESTAD:There's an agenda for the AEA meeting.Item 7A has Alaska Intertie, there is no content for the board packet at this time but it is on the agenda. JOE GRIFFITH:Good. RON SAXTON:I'm going to ask Brian,|guess.I'm not sure |understood that we didn't have a plan.|thought we had met a few times with AEA staff to talk about ways of financing repairs and the utilities said that they were agreeable to doing that once we figured out the scope of them and the proper way of financing.I'm not clear why that isn't on track.The IOC was identifying needed repairs and we already agreed and met and talked about working AEA's financing team to move forward and finance that. BRIAN BJORKQUIST:The last |heard with regard to that was that because of moving away from the inset tower fix to the snow load problem there wasn't enough projects to move forward on the financing and so it has falling back to where it was originally.At the IOC meeting yesterday,it was pretty clear that there was no plan.There were conversations about not even funding,even partially funding moving,forward on the repairs because the Alaska Intertie Agreement just doesn't provide a good mechanism for doing so.That there is conversation about not even starting the SVC repairs because to try to finance it in any fiscal year creates too much of a burden on the wheeling rate and therefore it is not doable.There has been some conversation in that regard but again,this is getting back to the Board,there has been no real progress.That is what we heard from the Board and you can hear it from them also,that continuing to talk about possibilities of the utilities possibly doing something to do funding when -at the IOC level anyway,the only thing that |heard yesterday and that |have been hearing from some time is that there is really no mechanism under this agreement to get things done that need to be done.|think that is the real concern.The other thing is that,and it came up at . the |OC meeting yesterday,that the real solution to the problems that we have under the Agreement is that we need an R&R fund.You need a mechanism for funding these things and Alaska Intertie Meeting Page 3 of 21 July 22,2005 we're not just talking about what's on the table right now because that is just the immediate problem.But we have a defect in the Agreement;there isn't a mechanism for the next majorrepairthatisgoingtobenecessaryandtheoneafterthat.We have a significant defect in theAgreement;it just doesn't work for prudent management.|think that is also the perception,andwehearingthatfromtheutilitiesalso.And so that's what |think it is.There's a problem with the Agreement,let's get together and let's fix it. JIM POSEY:Question for you Brian,and maybe for the Board or staff.What is the minimum amount that you would consider bondable in order to have a fund to do these capital improvements?Does it have to be over $5-$6 million dollars or can it be as little as $3.5 to $5 million? BRIAN BJORKQUIST:I think that's the question that is on your shoulders. JIM POSEY:No,the question is back to you as AEA and AIDEA.What is that amount for bonding and paying it off over a series of years?We're talking about making capital improvements not R&R. BRIAN BJORKQUIST:That's a question that goes right back to the utilities because you are the ones that need to be comfortable with the financing package for any capital improvements. JIM POSEY:Let's not turn it into a catch 22.Is there a minimum amount that you guys could bond and put it into 15 years for us to pay off? RON SAXTON:It would have been easier to talk about this more casually.We had already agreed,the utilities collectively,at least most of them,that some reasonable amount of money to make repairs was appropriate and that some side agreement to address that was appropriate.And when we were talking about that the assumption was that it would be an amount large enough that it made sense for AEA to sell some bonds and that we would agree in a side agreement to be responsible for the repayment of that.So none of that sounded contentious or controversial and |thought that we had agreed to that already.The only thing that changed was that it turns out that some of the repairs maybe cost less then people had thought so you get the question of has it gone down enough that bonding doesn't make sense anymore and some other method of finding the money makes sense.That's just sort of out - ask bond people... BRIAN BJORKQUIST:And all I'm trying to articulate Jim,is that |think that it is the question on your shoulders,when do you have enough debt for bond financing to make sense?And that's the question for the borrower and the utilities are basically the borrower. STEVE HAAGENSON:Bult,you'll be issuing the bonds. RON SAXTON:The question in fact is just do we want to have you sell bonds for us.|can get the answer to that,we can figure that out. STEVE HAAGENSON:We can't sell bonds,we don't own the asset. RON SAXTON:No,we want them.Is it cost effective at $5 million or $6 million or $20 million... Alaska Intertie Meeting Page 4 of 21 July 22,2005 BRIAN BJORKQUIST:Let me be clear here,I'm not running the show here and |think you need to hear from the board members also. JIM POSEY:|did address the question to everyone on this side of the table.What is that amount or is there a minimal amount that you would consider as part of a financing package, 10-15 year bond for up to $6 million or $12 million dollars depending on what we voted on,the 10C voted on yesterday. BRIAN BJORKQUIST:And there were just several questions with my name as the premise, and |just want to make it clear that I'm not running the show here. JIM POSEY:Okay. STEVE HAAGENSON:Just a point of clarification too.Brian was talking earlier about the SVC repairs and it would have a big burden on the wheeling costs.That was expensing that season one year,not putting in long term financing.Just so you understand that it won't kill the intertie if you have a long term package,but it will severely limit the intertie's wheeling rate if you try to expense all of the SVC repairs in one year. RON SAXTON:|don't think there is disagreement that some of these repairs need to be made and |don't think anybody arguing about who has to pay for them. MIKE BARRY:Is there disagreement that it would be sensible to have an R&R fund? RON SAXTON:We have to talk about that.Whether you put the R&R fund in front and pay for it or whether you just pay for the repairs and have a plan for paying for them as they arise and spreading it out.|think either one of these mechanisms is reasonable. MIKE BARRY:From my experience as a lender,it is much easier to finance projects that have an R&R fund and have some sense of an operating history that works.And when our board was brought into place in early 2003 we had orientation meetings,most of us didn't know anything at all about this and we were presented,right in this room here,with a laundry list of things related to AEA and the intertie and the Intertie Operating Committee,where the Intertie Operating Committee was presented in October of 2002 with a detailed list and agreed,the intertie Operating Committee,their Technical Subcommittee agreed that these things needed to be done.And now we are sitting here 2 %years later,after our orientation and nothing,not a single thing on that list has been done.It does not seem to be something that if we own the asset we should allow to continue.If you guys that are responsible for it can't figure out how to get it done then maybe the Agreement doesn't work.That's what the meeting is about.If the Agreement doesn't work,we have the authority to terminate the Agreement with several years notice.It's not like it's going to close the line down tomorrow,but its -how many years should we sit around and wait,until!something happens.Do you guys want to go another 10 years or actually until the line itself falls down? JOE GRIFFITH:If it's prudent we should do that,and that's the question that is before us,Mike. MIKE BARRY:It's prudent that we should wait another 10 years? JOE GRIFFITH:|didn't say that. Alaska Intertie Meeting Page 5 of 21 July 22,2005 MIKE BARRY:That was the question |asked. JOE GRIFFITH:Your question was a hip shot question that said would you want to wait another a 10 years,of course not,we have fixed it in the past and we will fix it in the future, that's where we stand on it. STEVE HAAGENSON:There is a bit of history here also.Every repair that has been done to date on that intertie has been paid for by the utilities already.It's not like we're ignoring maintenance,repair... MIKE BARRY:Nobody is arguing that the utilities aren't responsible to pay it and have the responsibility to pay it and certainly have the capability to pay it.In answer to Jim's question, once the utilities say,we're going to spend X,whether it's $1 million dollars or $20 million dollars then it becomes a financing problem.What's the most economical way to achieve the financing?Nobody's -at your meeting yesterday every time there was a vote to spend money it was voted down. STEVE HAAGENSON:|heard they actually approved the entire budget yesterday. JOE GRIFFITH:They approved the budget. MIKE BARRY:There's no SVC in the budget.Right.Okay.Was there any stanchion repairs? One,out of the three that were identified as defective -one of them is going to get repaired. RON SAXTON:But it's within the last several months that we had meetings in this buildings to talk about,with the utilities acknowledging,once we determine the scope of repairs we'll find a financing mechanism and move forward.We waited for the IOC to determine what the reasonable scope of those repairs was -AEA hired consultants,debated that at different times -they seem to have come to some conclusion so |agree it's time to move forward but it has only been a matter of a couple months since those numbers were figured out so... MIKE BARRY:It's been a matter of nearly three years since the problem was identified and accepted by the IOC,as these things need to be done.It's been nearly three years.And some of them go back longer then that,I'm not here to tell you that some of them don't go back six or seven years,but all of them in the group go back at least to October of 2002.There is a point that that kind of shilly-shally is not acceptable.And there is a point where it becomes prima facie evidence that the agreement doesn't work.The question is whether we are at that point or not. JOE GRIFFITH:Well,apparently you think we are because of the letter you sent out that said you were going to execute the termination arrangement. MIKE BARRY:That's not what the letter said,we're going to consider the termination of... JOE GRIFFITH:Sorta says that. MIKE BARRY:Do you have the letter there Ron? RON MILLER:Yes. Alaska Intertie Meeting Page 6 of 21 July 22,2005 MIKE BARRY:Please read into the record what it says as there seems to be some confusion about what it says. RON MILLER:"...,if no realistic solution is forthcoming,the AEA Board may be compelled to exercise its option to terminate the Agreement under Section 2.2.2,which will enable all the parties to negotiate a new Alaska Intertie Agreement.” MIKE BARRY:We're going to talk about it at the Board meeting but the directors would like to hear from the utilities,what is the impact of the termination of the agreement.There is four years notice on it,that would seem to give people ample time to negotiate a set of documents that would really work.If an R&R fund is necessary then put it in there,in the Agreement. BRIAN BJORKQUIST:And as a backdrop to that -the conventional wisdom I've heard for as long as |have been engaged is that you can't amend the Intertie Agreement.That came out very loudly yesterday at the IOC meeting also.So,if there is a defect in the Agreement and we can't fix it,this is a way to require a fixing -to move forward and to fix the Agreement. STEVE HAAGENSON:I think there are amendments to the Agreement already. RON SAXTON:Whyis it that it can't be amended? RICK SCHIKORA:Why can't you amend it? BRIAN BJORKQUIST:That's the conventional wisdom I've heard and that's exactly... RON SAXTON:From who? BRIAN BJORKQUIST:Well,from the utilities.You can't... JOE GRIFFITH:There have been several amendments to it. BRIAN BJORKQUIST:You can't reopen... RON SAXTON:Not from the lawyers or management you haven't heard that. BRIAN BJORKQUIST:You can't reopen the Agreement because reopening the Agreement will cause too much havoc.Basically... STEVE HAAGENSON:But that's exactly what you're recommending after you terminate the Intertie Agreement -starting over from scratch.No utility wants to start from scratch.We should start from what we got that works and make it work for us better with an amendment.|don't think anybodyin the room has a problem with that. BRIAN BJORKQUIST:That would be a good solution to move forward.Let's move forward with amending the Agreement to fix the defects that there are in it so that we don't have the situation where the AEA Board is in a position where it feels it needs to kick us to get going. And |would just throw out,I've been listening to the Board and you may hear them yelling at you,|hear them yelling at AEA staff too that moving forward as we have with no progress is unacceptable.We need to fix this. Alaska Intertie Meeting Page 7 of 21 July 22,2005 RON MILLER:As Brian says,we have been hearing from the IOC that you can't -that it would be impossible to amend the Agreement.And,if what we are hearing from the General Managers is different,that there is interest in moving forward with a plan to amend the agreement it sounds like there is a lack of alignment between General Managers and the IOC. RON SAXTON:The IOC has always been structured as the operators.They are not management,they don't have legal representation,they're just a group of operators there to talk about the right way to operate it efficiently.So,|think a discussion about amendment the Agreement needs to happen at the manager level. JOE GRIFFITH:|!agree. STEVE HAAGENSON:|thought we were working towards that solution... JOE GRIFFITH:So did I. STEVE HAAGENSON:...we have a snow load issue out there and we have been studying that quite severely for the last couple years,longer than that probably.We were working on a scope of work to see what was prudent utility practice.Is it wise to upgrade a plant like that,is it not wise -AIDEA has a scope of work on the street right now... BRIAN BJORKQUIST:AEA STEVE HAAGENSON:Sorry,AEA does.There are all of these things you're talking about - static bar compensators.What's the impact if one of them does go down -we need to know that -is it death?Probably not.My guess is,just to my rule of thumb engineer,says you can probably run with one of them down.So,is it the end of the world?No.So,|think we're -all we have to do is sit down and say what's the final solution,which we haven't decided yet,like on the snow load problem,and work on ongoing maintenance.And then we have to deal with issues that were handed to us in the original design,things that are kind of -they're not stable like we thought they were going to be,they're moving around a little bit and we're fixing those too.|think we're way down the path and I'm kind of surprised that you're saying "oh my god, this isn't working,”1 don't think it's broken. MIKE BARRY:Maybe the managers should go to the IOC meetings or at least read the minutes of the meetings. STEVE HAAGENSON:|talk to the guys all the time -our guy. JOE GRIFFITH:We gota report already. MIKE BARRY:And they tell you it's working? JIM POSEY:They also told me they came up -voted on a solution and a number that we can go forward with,so I'm ready to go. MIKE BARRY:So there's,help me here Bernie,|think three stanchions that are precarious? BERNIE SMITH:That's what the (indiscernible)and they are fixing one. Alaska Intertie Meeting Page 8 of 21 July 22,2005 MIKE BARRY:And one of them gets repaired.How did someone decide that this one gets repaired and the other two don't? DOUG HALL:We're still establishing the data.In fact,our consultant has said that we may in fact have on the Curry Ridge,where we have two towers,one of which hasn't moved in 15 years it appears.The other one we have to wait until everything is dry up there so we can actually get in there and see is the soil settled exactly or if has been movement.That's the one we're thinking based upon what our results are telling us that we're going to have to do something on.Golden Valley and the Moody slide area has been doing for the last 18 months - different studies -we have had consultants doing different studies that tell us now.Initially,we thought we were losing the foundation,but come to find out we are not losing the foundation at all and that,in fact,the Moody slide area appears that the hill is settling around the foundation and they may just be able to grout it and get away with it.So,this is all information that over time has to accumulate and that is exactly what we have been doing on that.The same thing in relation to the SVC.The SVC replacement project started out as their parts inventory.We needed spare parts for the electronic control boards of the units.We had a consultant go in, study,get a list of everything in the three individual units because they were all manufactured slightly differently on the mother board.We were given a complete inventory of it and then find out if any manufacturer still supports this equipment which we found that no they don't,in fact we have to pull the units out of service,send them to China to be reengineered,reverse engineered and then have recreated them.So that is not prudent utility practice for 25 year old equipment we'll go ahead and proceed with the specification that we can replace these units. And that whole process has been going on since the inventory actually occurred in early 2003. So we have been moving along on that and we just about have a document ready to go on the street now to bid for the three units. MIKE BARRY:Maybe the Board needs to understand more about utility practices.In your own utility,if every manufacturer in the world discontinued supporting equipment and it is 25 years old and you ascertain that your spare parts inventory was depleted,how many years would you study it before you actually implemented the solution? STEVE HAAGENSON:We deal with that every day. JOE GRIFFITH:Every day. STEVE HAAGENSON:You look at taking a sequential staging out of equipment -you keep old technology to pull parts off of as you need them,as you are replacing them or you can just rip the whole thing out and do it at once.The question is what's the best approach to do it? MIKE BARRY:Would the utilities be willing to indemnify AEA from any liability that we have for letting this go on so long? STEVE HAAGENSON:|don't know what you're talking about -letting what go on? MIKE BARRY:The studying of these issues that were brought to our attention years ago. JOE GRIFFITH:Should we not study them?Is that what you're suggesting? MIKE BARRY:All we're saying is that we don't have the control to make the repairs.You folks have the control to make the repairs. Alaska Intertie Meeting Page 9 of 21 July 22,2005 JOE GRIFFITH:And that's exactly where we're going. MIKE BARRY:And so we just want to get that in the record.Apparently then you're saying you have already got the liability and we don't have it.Would that be your interpretation Brian? BRIAN BJORKQUIST:That would be my interpretation of the Agreement,but |certainly don't hear that from the utilities as they discuss these matters. RON SAXTON:|don't think statements on the record is the way to resolve that.What I've heard is,what we've said is,whatever a scope of work is that the IOC agrees is appropriate,at least the three generators that sell power over the line,you told me a year ago to work with your staff and come up with a way to finance the repairs and they'd agree to an arrangement to pay for it.So,|don't see where there is a disagreement over that it is just a matter of IOC determining what are those actually repairs so we know how much money we are financing. BRIAN BJORKQUIST:Mr.Chairman,to interpret what he just said -if he's the attorney for the utilities they will take the position that AEA is liable.That's what |just heard. JOE GRIFFITH:If |might read into the record,your definition,or the 1OC's -the agreement's definition of prudent utility practice."Any of the practices methods and acts which in the exercise of reasonable in light of the facts known at the time the decision was made would have been expected to accomplish the desired result at the lowest reasonable cost consistent with the reliability safety and expedition.”And other things,including but not limited practices used across the industry,is in essence what it says and |think that is exactly what the utilities are doing.But the definition is there,then the question that Jim brought up earlier is the relevant question.What size of a bond package is reasonable,and somebody ought to be able to answer that,|would think.|don't know,it's usually smarter to do bigger ones but,do we want to do it?In fact,we had this discussion several times in the last few years. MIKE BARRY:And is a bond the only way that financing could be achieved?Why wouldn't a loan work? JOE GRIFFITH:It would. MIKE BARRY:And there is certainly some amount,if it's low enough a loan would be more efficient than a bond. JOE GRIFFITH:True. STEVE HAAGENSON:That's what the definition just said,what's the lowest cost way to do it. MIKE BARRY:But it doesn't -do you want my staff to do a study for you in $100,000 increments from 0 to $10 million on what the most effective way to finance is? JOE GRIFFITH:No,that's not... MIKE BARRY:Somebody needs to give us some numbers to work with. JIM POSEY:$3 to $7 million. Alaska Intertie Meeting Page 10 of 21 July 22,2005 MIKE BARRY:$3 to $7? JIM POSEY:$3 to $7 million.Give use some deals on that and we'll act on them. MIKE BARRY:We can do that.We haven't had -from our perception we haven't had any movement on this.From your perception maybe,you know,this study program is the best way to do,just study it. JOE GRIFFITH:Well,we've been talking to your staff about it,Mike,it hasn't been that we've ignored it or got our heads in the sand,we are gathering the information that we need to comply with that definition #35,right there.And the question is,the one you broached,how do you finance it?Do you do it with a loan or do you do it with a bond,and !don't know the answer to that.You guys can probably answer that overnight. MIKE BARRY:It doesn't sound to me though that you even have a project identified.If you're saying that with the SVC's -the fix hasn't been determined yet.It was presented to us back in October 2002,the fix was to go buy new ones.That was what the fix was. JOE GRIFFITH:That would be one angle of it,the other way is to put different controllers on it. You have to do the reasonable cost... MIKE BARRY:|guess we can study.... STEVE HAAGENSON:Or you can tear them all out and put new ones in... MIKE BARRY:We can study it until one of them actually fails and then we'd have to figure out what the solution is,|guess. JOE GRIFFITH:That is also an option,yes. MIKE BARRY:And then we can find out whether it closes the line down or not if one of them fails,we'll know for sure.|guess everything is hunky-dory.We're just moving right along at the best pace we can. JIM POSEY:So,are we going to get an answer between $3 and $7 million dollars,loan versus bonds fairly soon? MIKE BARRY:Sure. JIM POSEY:The number was $3 million something from the IOC is the possible cost? DOUG HALL:Depending on the extent of the repairs on (indiscernible)Ridge. JIM POSEY:So,we're looking at something in that zone... MIKE BARRY:In a term of 15 years. JIM POSEY:That's probably a reasonable term,but that depends on the best financing. Alaska Intertie Meeting Page 11 of 21 July 22,2005 RON SAXTON:And I think that |agree with Brian that the terms of the Agreement doesn't lend itself to the satisfactory repayment obligation,and we're prepared to work on a suitable side agreement to make sure that there is the kind of repayment obligation that needs to exist. BRIAN BJORKQUIST:And then in addition to that what we should be focusing on to make this Agreement work five years from now,ten years from now so we don't have to have a threat from the Board before everybody gets to the table to really act.You have a different perspective so be it,but if there are things in the Agreement that need to be fixed so that we don't have to get to this point the next time something needs to be done we should do that too at this point. RICK SCHIKORA:So,what items in the Agreement do you think need to be fixed at this point? BRIAN BJORKQUIST:One solution would be to create an R&R fund so that you have a funding mechanism for these types of maintenance so that they don't become deferred maintenance for years and years. RICK SCHIKORA:We've heard about that one,what's the next one? BRIAN BJORKQUIST:Well,we can talk about it. RICK SCHIKORA:You've got some issues with it,what are they?I'd like to write them down. MIKE BARRY:With the R&R fund we can't find any other intertie that doesn't have an R&R fund... RICK SCHIKORA:Well,that's fine,that's one issue... MIKE BARRY:...so when you talk about prudent utility practices you guys can't sit there and say that the accepted prudent utility practices say there's no R&R fund. RICK SCHIKORA:Mike,we have R&R fund on our list,why don't you tell us what the next issue is. MIKE BARRY:Okay,number two,|think is important -you have a mechanism that essentially discourages anyone from recommending a capital improvement or a maintenance fix that costs money.Because if they recommend it,like AEA,if we recommend it,we'd have no funding mechanism,AEA has no capital at all.If we say all of your studies have shown us that you need SVC's and we go out and spend the money to buy new SVC's that's what everybody agrees to then you all decide well,we don't go along with that and you don't have to pay the money back.Or individually you opt out,isn't that right Brian? STEVE HAAGENSON:|think that's covered under the R&R fund isn't it? RON SAXTON:I think it's the same issue. JOE GRIFFITH:Same issue. MIKE BARRY:Same issue,but it's in the Agreement.That's part of the Agreement today. Alaska Intertie Meeting Page 12 of 21 July 22,2005 JOE GRIFFITH:Part of the Agreement that we would agree to fixes and then refuse to pay for them? MIKE BARRY:Today,yeah.Individually,not collectively,but individually. BRIAN BJORKQUIST:And then there is a long list of items that simply are not followed anymore and in particular are not followed after the '93 reorganization of the Alaska Energy Authority.Examples include the budget,the budget process under the agreement is not being followed and the budget provides that it is supposed to be 13 months before the beginning of the fiscal year and that hasn't been done for a decade or more.There are other examples of that type of thing,just things that are no longer applicable,they are ignored by the IOC and there just still in the Agreement lingering.There was some discussion of that yesterday at the IOC meeting,some examples of that and those -your utility members on the IOC probably have a better handle of that then |do right now.Every example of what no longer is followed. RON SAXTON:It was at the 1OC meeting yesterday -what I'd like is to get the list so |can look at those and see how we can fix them.Is there a list of what those are? BRIAN BJORKQUIST:There was some discussion of many of the items.!know that John Cooley gave some recitation;|think Henri Dale may have spoken of a few of the matters,but the budget is the one that |remember having more discussion then anything else. MIKE BARRY:|think they make a transcript don't they,Bernie,of the meetings? BERNIE SMITH:Yes. MIKE BARRY:So,we'll get you the transcript then. RON SAXTON:That would be wonderful,thank you.And your sense,Brian,is that they are not being followed is related to AEA's reorganization?Or why aren't they being followed? BRIAN BJORKQUIST:This came from John Colley,the history of it is that before 1993,the legislature appropriated the budget for a fiscal year,so the budget had to be prepared 13 months in advance to give time to go to the legislature for an appropriate and then the utility payments were a reimbursement of what the state had appropriated.From 1993 forward that hasn't been followed.The legislature is not appropriating the intertie budget anymore and it is not a reimbursement,it is a pay as you go type of system. RON SAXTON:You don't have a desire to return to the old way do you? BRIAN BJORKQUIST:|don't think they're... MIKE BARRY:We just have a desire to get a set of agreements that can be complied with. RICK SCHIKORA:What you're saying is that the Agreement says you have to do the budget 13 months in advance and you want to make it three or four,or some number,but you... BRIAN BJORKQUIST:Let the IOC figure out how... Alaska Intertie Meeting Page 13 of 21 July 22,2005 MIKE BARRY:We would like it to work for the utilities.We don't really care how it works,as long as it works. RICK SCHIKORA:It works now,they're just not following 13.That's the...didn't we approve the budget yesterday. MIKE BARRY:|don't think it really works if we're a couple weeks into the year before the budget gets approved.Do you think that works that way? RICK SCHIKORA:|don't know. MIKE BARRY:Is that the way Golden Valley does its budget?They wait -You're ona calendar year so you wait until January to approve your budget for the year? JOE GRIFFITH:Sometimes,yes. MIKE BARRY:That's not in the utility practice. JOE GRIFFITH:Yeah,it is. BRIAN BJORKQUIST:May I share that my perception is that this is a criticism coming from your representatives to the IOC also,that they would like to see this fixed.So what they do matches up with what's in the Agreement.|think they have some ideas how they would like to change it so it would be more useful for them also.Another criticism |heard yesterday was that the Alaska Interite Agreement is tied to the state fiscal year where as the utilities operate on a calendar fiscal year and that is just so awkward for them.That you can't do something that year because utilities can't make adjustments so just moving it so you have the same fiscal years would be an example of a fix that would be more beneficial to the utilities based on what |heard from your representatives to the lIOC yesterday. RON SAXTON:But is the budget problem or the calendar year problem causing the State a problem or you're just alerting us that our people want to change this? BRIAN BJORKQUIST:|think it causes us some problems too because we have an Agreement that is not being complied with and that is always a problematic type of situation.It just ignored. JIM POSEY:Since 1993 it has not been followed and the wheels haven't fallen off the vehicle, so since 1993 was the reorganization of AEA,which is part of what happened and we did not change the agreement,what we've done is move forward through expenses and taken care of those things that we have to do.It doesn't seem like it's broken,you just put not applicable and move ahead and look at doing the R&R loan fund to fix the things that you have to do and then look at whatever agreement changes you have to do because the Agreement changes are probably going to be more difficult then coming up with the money to make the things that we need to do in order to make it fun efficiently now. STEVE HAAGENSON:It sounds to me like the Agreement has morphed to what the utilities want and what works for them already. BRIAN BJORKQUIST:With the exception of the two fiscal years. Alaska Intertie Meeting Page 14 of 21 July 22,2005 STEVE HAAGENSON:And except for that one that one issue where we're going to be late this year -|don't know if they are or not,but if they're late,then |guess you can spank us for that but |don't think it's broken I think it's been morphed into what really works. MIKE BARRY:It might work for you,Steve,to have an Agreement that we're not following,but it does not work for our Board to have an Agreement that nobody is following,okay.And,if you are saying that it is easy to change it,then please change it.That's all we're asking. STEVE HAAGENSON:|think it's almost a silly point in my mind,because to have to have this message come from the IOC,apparently through staff of AEA back through the AEA Board back to the managers to tell the IOC staff that they should comply with the Agreement we have signed -it's kind of a circuitous path.It's kind of silly.|think all the guys will say is why aren't you guys complying with the Agreement?It's a short phone call. MIKE BARRY:Well,apparently there are,as Jim said,there are reasons why the Agreement is not being complied with.And it would be better for everyone to change the Agreement so that it could automatically and routinely be complied with instead of routinely be out of compliance. And that's what we would like to do is to get it so that you can operate routinely in compliance. STEVE HAAGENSON:|don't have a problem with that. JOE GRIFFITH:And that's the genesis of your comment about lack of compliances is the difference between what we're doing and what's in the agreement. JIM POSEY:It wasn't something that we did,it's something that the State did in reorganizing AEA that caused it to be off cycle. MIKE BARRY:Nobody is trying to make a blame issue out of this,Jim,we're trying to say -you asked us what doesn't work and we don't -this is one of the items that we don't think works. Being out of compliance every day of the year. RON SAXTON:Not minimizing,but beyond the budget issue and the fiscal year issue are there others where you think that they are routinely not following the contract? BRIAN BJORKQUIST:There certainly may be but I'm not aware of anything right now,but I would encourage you to ask your IOC representatives.They probably have a better idea of what they don't follow exactly in the agreement. RON SAXTON:Changing a budget cycle ought to be a pretty noncontroversial amendment and is easy to do. JIM POSEY:Yes,|agree with that. RON SAXTON:|can't imagine that is going to cause a problem.We can certainly look at how to change that. MIKE BARRY:And changing the requirement that the legislature appropriate the budget,okay. RON MILLER:We have a written document but what is accepted practice isn't reflected in this and so we have a sort of defacto amendment to the Agreement. Alaska Intertie Meeting Page 15 of 21 July 22,2005 STEVE HAAGENSON:So have you tried to go to the legislature lately and get some money appropriated for AEA? BRIAN BJORKQUIST:Are you volunteering? RON SAXTON:|think it would be fortuitous on the funding for repairs and stuff,|think we can work that one through,|didn't realize it had deteriorated as much as it had and |think we already agreed to do that so we can do that.Cleaning up some language about fiscal years and budget process,|don't hear anything controversial about that,it ought to be easy to do. BRIAN BJORKQUIST:Then tied to the first one is fixing so that we will have an easier mechanism in the future. RON MILLER:Do we want to set a work plan today? RON SAXTON:If we get a list of what the issues are,you know,everybody else can dowhatevertheywantbut!'ll bet Brian and |in pretty short order could put a list or at least something to talk about,a starting document.|don't view this as very hard at all and then whoever wants to play with it can play with it. BRIAN BJORKQUIST:Then the other issue would be on the financing side of the capital repairs that are on the table right now.And correct me if I'm wrong but what |heard was that the desired course,for example,to do all three SVC's at the same time so you have the same model!so that you can have a single set of components. DOUG HALL:Absolutely,to ensure that the SVC's,all three SVC's are compatible and then you only have to maintain one set of spare parts.We want to purchase all three at the same time. JIM POSEY:But not install them all. DOUG HALL:Well you can't install them all at the same time because it is a staged installation. But,yes,we would like to be able to purchase them,make a contract for the purchase;they may not be manufactured immediately but sequentially.It's computer basically and you don't want to get the next version where they've upgraded and changed the internal parts. JOE GRIFFITH:It seems like we've addressed then the issues that you have articulated.No R&R fund,major maintenance which is sort of a piece of that.Deferred repairs also a piece of it and lack of compliance because of some anomalies that remain in the Agreement because of the 1993 action. BRIAN BJORKQUIST:And that's what |heard from John Cooley yesterday,that's factually inaccurate,so be it,but the reality is that operational procedures in reality are different than what the Agreement says. JOE GRIFFITH:We never did go back after Ramona killed off AEA and cleaned all of that up.| We did not,that's true. MIKE BARRY:Bernie,do you have other things that should be added to that list? Alaska Intertie Meeting Page 16 of 21 July 22,2005 BERNIE SMITH:One other thing is that there is no roll over on the budget and if you had a rollover-in other words,you have to give everything back -starts back at zero -if you had a roll over it would seem like that roll over,if there was any extra,could go into the R&R fund.And by the Agreement,from what |was understood,was told that you can't do that.So that would be _another thing that you might want to look at.If there is money left over after... JIM POSEY:Right back into my auditor who did the Bradley Lake deal... BERNIE SMITH:|don't know,I'm just... JIM POSEY:...we had to change... STEVE HAAGENSON:We have the same issue. JIM POSEY:...the Agreement controlled it and we can't back date the agreement but we can do something forward.It would have to be something that we agreed to... RON SAXTON:|think if we're going to have an R&R borrowing or selling some bonds is a lot cleaner because we do get into the municipal coding and there is tax problems... BERNIE SMITH:The other thing is that the date that the actual budget -everybody else is onfiscalyearDecember31*this thing starts at June 30.It would see like you would want it all to be at the same time.And if that's in the Agreement then that would be something you might want to change,change it to where it meets the utilities budget line.If you're going to start changing the Agreement let's make it so it's easy for everybody. RICK SCHIKORA:We got that on our list. STEVE HAAGENSON:Bradley Lake is a different fiscal year then the rest of this,it's not a problem there. BERNIE SMITH:I'm just saying that it seems odd. STEVE HAAGENSON:You just have to get busy and get it done on time. MIKE BARRY:Steve,that's not a problem for us,that's a problem that your people on the |OC are saying is a problem.We're just passing it on to you.You've got to look at the Agreement. You can address it or not,we don't care whether you address that part or not. STEVE HAAGENSON:I've got it down here. BERNIE SMITH:Things were brought up in the meeting -you asked what things were brought in the meeting and that's what it was. RON MILLER:Art Copoulos is gathering information.Art Copoulos will be leaving us next month and Bernie will be stepping in with the 1OC in his place. STEVE HAAGENSON:Where's Art going? Alaska Intertie Meeting Page 17 of 21 July 22,2005 RON MILLER:DNR.He'll be available during the transition period to work with Bernie.He is going back to the oil and gas sector from whence he came. MIKE BARRY:Can we have some kind of a time table to put in front of our Board as to when we might see the changes? RICK SCHIKORA:Sure.We can come next week. RON SAXTON:How fast can we get a transcript of what else might be on the list. BRIAN BJORKQUIST:|just want to emphasis that is two components to it:1)what was mentioned yesterday and the other thing is that |would ask every General Manager to ask their IOC representative or whoever has been there,is there anything else.Let's all collectively do the best job we can to clean up everything today so !would ask everybody to ask.Art hasn't been here this week and we will ask him also if there is any other examples. RON MILLER:He'll be back Monday so we will make sure... BRIAN BJUORKQUIST:We should have the transcript early next week. BERNIE SMITH:Yes,I'm doing it this weekend. JIM POSEY:Then is it a two week or three week project to deal with the $3 to $7 million dollars as to how would best -loan versus bonds?That analysis,|don't know who you would have to do it. MIKE BARRY:In two weeks we can do it with a range.That's all they can do really... JIM POSEY:That's all we want.Based on what the IOC did yesterday... RON MILLER:$3 to $7 million over 15 years? MIKE BARRY:Right. JOE GRIFFITH:And it may come back that it would be smarter to do it at a less period or longer period or something like that.Have them look at the whole financing idea. JIM POSEY:Look at it something like 7 to 15 years,$3 to $7 million,and see where that crosses over.That's how we do it. BERNIE SMITH:In the Budget Subcommittee started also to do a mid-year review of the budget and such as if one of the SVC's happen blows up,especially the one in Healy and you have another option (indiscernible)you can add (indiscernible). MIKE BARRY:So there's nothing in the Agreement that would allow them to have a budget session whenever it was necessary?Maybe that's something that could be added to the agreement. Alaska Intertie Meeting Page 18 of 21 July 22,2005 BERNIE SMITH:And my understanding from the history from John Colley,they used to have a mid-year review so (indiscernible)for adding to -this gives you an added place to come here and relook at the budget. MIKE BARRY:|would propose that it would be prudent to have the ability to do that whenever it was necessary. RON SAXTON:Henri is the chair at IOC,can we task Henri with gathering these and then sharing back to all of us whatever the collective list is that is found. BRIAN BJORKQUIST:It's my perception that some utilities have new members on the IOC,if you still have access to the old members ask them too.I'm just encouraging you to get the best information you can.If you have somebody with experience who is no longer on the IOC,still ask them. DON ZOERB:|need to interject a disclaimer here on behalf of MEA.We will be at the Board meeting on Monday and we will respond to the letter that you sent out at that time.|just need to be real sure that you all understand that at this point MEA is not committing to agree to any modifications of the existing agreement.But the input we are getting here is very valuable aswedevelopourpositionforMonday.|also want to convey'our grave concern that the public safety hazard posed a differential snow loading problem where the intertie passes through our service territory.We cannot overstate our level of concern that someone is going to be hurt. There is going to be a tragic event up there sooner or later and we think it is unconscionable that the problem is continuing to go unaddressed. MIKE BARRY:Thanks for your input. JIM POSEY:Since this is a work session I'll address part of that.It was stated and I brought it up once that the and |noticed that the time the intertie was built,so |have been around a long time,that the right-of-way was never closed,never posted and never fenced,and never noticed. |brought that to the attention of AEA and AIDEA in a public meeting once before and that is an option as opposed to $32 million dollar insets (indiscernible)developed in other places then they know where the snow is at any given time.Clearing out and posting is a way to deal with that particular problem and|think,let's put it on the table today. MIKE BARRY:You might get more prima facie evidence as to why the Agreement doesn't work. JIM POSEY:Yes,that's true. MIKE BARRY:What's your response to assessing the utilities for the fencing capital costs and posting? STEVE HAAGENSON:The R&R fund because that's the path we go down,|think that what we're doing right now working with AEA staff -which one is it? BRIAN BJORKQUIST:It's AEA. STEVE HAAGENSON:Okay,but aren't you AEA/AIDEA staff still?Anyway,working with staff, you guys can pick the right thing -|thought we had been working on prudent utility practice for Alaska Intertie Meeting Page 19 of 21 July 22,2005 the mitigation of snow load monitoring and |do take objection to you saying we're doing nothing. A few years ago we put in monitoring,which is still functioning out there.The IOC took action at the last meeting yesterday to put the alarm levels in at a certain level which is a very safe prudent utility practice.We're looking at a wide range of things,but |have to bring you back to the idea -as an engineer |went through that thing like 15 years ago when it was first brought up to be an issue.It is not a code violation.So,that's an issue.Everybody keeps saying it's a safety thing and |liken it back to looking at the Northwest,when you have an ice storm come through.It comes back -you get ice storms down there more regularly then we have problems with this line.They're not saying,sorry we have to make it -build it to withstand one to two or three year occurrences.They're not doing that,they're saying we're going to deal with it when it happens -and we've actually done more than that.We have monitors on it to watch it 24 hours a day,we send people up there to patrol it and keep an eye on it.So,we're not doing nothing. Just for the record. MIKE BARRY:Any other comments on snow load? BERNIE SMITH:I'm new to this so |don't have a lot of history,but it also seems to me that right now when these alarms go off what you're supposed to do is shut the whole intertie down til you get the fix done.It would seem logical that you would have two sets of monitors out there,one to get out there -not to shut the line down -to have it set to where it is getting ready to be shut down without getting to the limit there,you can go out there and look at it first before you actually have the drastic cause of just shutting the whole line down.And that's the way my understanding is it's going to happen if the alarm goes off,the intertie gets shut down at that point.So it seems like if we spent the money,put in external alarms or a second set of alarms to be set lower and go out there and have people look at it.The way it is written into the record that |understand,when the alarm goes off now,the intertie gets shut down.We should be spending the money in there so that you have two sets of monitors.And you may need more monitors in certain areas then others.|don't know,it's pretty drastic to shut the thing down when the alarm goes off. STEVE HAAGENSON:Chairman Barry,let me explain a little bit about the snow load issue. When the whole line loads up evenly,there is not a problem.The question is when is the snow going to fall off.You may have two weeks to two months before that snow actually falls off and creates a situation that may or may not occur.A lot of time,it's not like,oh we're going to go along today and then there's an alarm,boom the blind goes open -we know days,weeks in advance that there will be an issue because that line will be loaded up with heavy amounts of snow,so it's not like,surprise,shut the line down. BERNIE SMITH:Well,when the alarm goes off -my understanding from the compromise for the $32 million dollar -with these alarms -you set these the alarm at what ever stage that you set it at and when that happens the line gets shut down.And that was what was stated at the lIOC meeting. MIKE BARRY:Steve's not arguing with that,what he's saying is that you'll know weeks ahead of time what might set the alarm off so you'll have time to react to it. STEVE HAAGENSON:You'll know ahead of time so it's not like it's all a big surprise,shut the line down -you'll know it when MEA gets hammered with snow you go look at the line -do your line patrol,see if it is loaded up and if it is loaded up you say at sometime it is going to unload. At that point you may have an issue. Alaska Intertie Meeting Page 20 of 21 July 22,2005 RICK SCHIKORA:Is there a way to help it unload? STEVE HAAGENSON:Actually,that's really hard.We went down one year when it was really bad and helped MEA out and tried to knock it off with some hotsticks and you could knock off about a foot.It's fairly well loaded up and doesn't come off easy.But when it does come off by itself it really comes off fast. BRIAN BJORKQUIST:But that is something that Dryden and LaRue is looking at. STEVE HAAGENSON:That's right._ BRIAN BJORKQUIST:And the way they characterized,Paul Williams characterized it yesterday;if you have icing of the snow it is the situation that you described,a foot at a time -if you get it earlier before it starts icing up you can whack one line and three spans can unload at the same time.Something of that nature.But Dryden and LaRue is looking at that question - what could be done to help with that. STEVE HAAGENSON:My guess,to maintain,if you snow conditions that were earlier enough they could go out and whack it and it would come off,|guess. BRIAN BJORKQUIST:I'd like to add one more thing.|know that MEA doesn't think that the direction that the lOC is going is the ideal solution,but if you have any suggestions to improve what we are doing,notwithstanding the fact that it's not ideal,that would be useful also.If it is MEA or AEG&T,whoever,any suggestions that you have would be useful. DON ZOERB:Okay. RON MILLER:You guys are designating Henri Dale for the contact for all of the IOC members to... STEVE HAAGENSON:He's the chairman of the IOC,that's why we picked Henri... RON MILLER:I'll have Art and Bernie work next week to gather all of the information we have and to share that with you through him,so we have focused points of contact. STEVE HAAGENSON:I'll call him right after this meeting to give him a heads up to get ready. JIM POSEY:We appreciate you calling this work session because |think this is a better way to at least talk through our concerns and gather data so we can move forward.It is really good. STEVE HAAGENSON:It's nice to have a two way interaction instead of just testimonial. RON MILLER:As you can see we have two Board members here at a work session,if we have another board member it would be a board meeting so that was one of the reasons we had it set for a board meeting. STEVE HAAGENSON:|understand.Mark's probably feeling like he's drinking through a fire hose right now. Alaska Intertie Meeting Page 21 of 21 July 22,2005 MARK DAVIS:Yes,but |do understand what the Chairman is saying as |am a bank commissioner and we look at loans to banks to see whether there is a way to maintain the security of the loans.And if the loan is unsecure because of maintenance then they place the loan into a special category. JIM POSEY:On this loan there is no existing debt so we're talking assuming debt in order to do what needs to be done. MARK DAVIS:|understand. MIKE BARRY:|don't want,Jim,to have you guys perceive this as threat because it is not threatening.We're trying to look at a constructive way to make the intertie work better for everybody.But when you look at financing for example,it's difficult for us in good faith to sponsor financing when we're being told by the IOC that the agreements don't work.As a board,the only way we can force the agreements to work is to terminate them and start over again.If you guys collectively come to an agreement to change it that's the best solution for everybody,but |think it needs to be addressed before somebody talks about.financing or we can limit the financing term less than four years. STEVE HAAGENSON:|think we made a big step toward solving it today.Thanks again for the meeting. Adjournment:11:05 a.m. End of Transcript Alaska Intertie Repair Financing Scenarios Annual Payment Comparison AIDEA Loan Participation vs.AEA Revenue Bonds Net Proceeds Term 3 million 5 million 7 million Loan: 7 years 553,211 922,018 1,290,826 15 years 330,264 550,440 770,616 20 years 284,980 474,966 664,952 Taxable Revenue Bonds: 7 years Debt service 616,804 1,012,679 1,407,721 Net debt service 604,074 990,619 1,375,760 15 years Debt service 351,285 577,053 802,320 Net debt service 337,402 552,309 767,640 20 years Debt service 296,377 486,341 675,369 Net debt service 285,143 466,337 645,499 Loan assumptions: AIDEA rate 5.87%for 7 years,6.53%for 15 years and 6.67%for 20 years Bank rate 7%(bank portion 10%of total loan) 3%fee on entire loan which is estimated to include all financing costs Annual payment listed Taxable Revenue Bond assumptions: Rates:5.5%for 7 years;5.6%for 15 years;5.8%for 20 years Debt Service Reserve Fund is estimated at 8.6-10%of amount borrowed and is funded from bond proceeds Debt service listed is average annual Net debt service is maximum annual debt service,net of interest earned on reserve fund investment.Debt service for final bond year is reduced by debt service reserve fund investment. Costs of issuance include underwriter's discount,bond counsel,AEA costs and typical closing costs (trustee fee,printing).No rating agency fee is included.No utility closing costs are included. 8/17/2005 AkintertieFinancingScenario.x!s Recap AIDEA Loan Participation $3 million 7,15 and 20 years Alaska Intertie Financing Scenario AIDEA Loan Participation Program $3 Million Net Proceeds Total AIDEA Portion Bank Portion 3 Fee % 7 Year Rate:Rate: 3,000,000 Needed 5.87%2,700,000 Needed 7.00%300,000 Needed Payment.Interest Principal 90,000 Fee Payment Interest Principal 81,000 Fee Payment Interest Principal 9,000 Fee 3,090,000 Loan 2,781,000 Loan 309,000 Loan 41 553,211 184,875 368,336 2,721,664 495,875 163,245 332,630 2,448,370 57,336 21,630 35,706 273,294 2 553,211 162,850 390,361 2,331,303 495,875 143,719 352,156 2,096,214 57,336 19,131 38,205 235,089 3 553,211 139,504 413,707 1,917,596 495,875 123,048 372,827 1,723,387 57,336 16,456 40,880 194,209 4 553,211 114,758 438,453 1,479,143 495,875 101,163 394,712 1,328,675 57,336 13,595 43,741 150,468 5 553,211 88,526 464,685 1,014,458 495,875 77,993 417,882 910,793 57,336 10,533 46,803 103,665 6 553,211 60,721 492,490 521,968 495,875 53,464 442,411 468,382 57,336 7,257 50,079 53,586 7 553,211 31,245 521,966 2 495,875 27,494 468,381 1 57,336 3,751 53,585 1 Total AIDEA Portion Bank Portion 15 Year Rate:Rate: 3,000,000 Needed 6.53%2,700,000 Needed 7.00%300,000 Needed Payment Interest Principal 90,000 Fee Payment Interest Principal 81,000 Fee Payment Interest Principal 9,000 Fee 3,090,000 Loan 2,781,000 Loan 309,000 Loan 1 330,264 203,229 127,035 2,962,965 296,337 181,599 114,738 2,666,262 33,927 21,630 12,297 296,703 2 330,264 194,876 135,388 2,827,577 296,337 174,107 122,230 2,544,031 33,927 20,769 13,158 283,546 3 330,264 185,973 144,291 2,683,286 296,337 166,125 130,212 2,413,819 33,927 19,848 14,079 269,467 4 330,264 176,485 153,779 2,529,507 296,337 157,622 138,715 2,275,104 33,927 18,863 15,064 254,404 5 330,264 166,372 163,892 2,365,616 296,337 148,564 147,773 2,127,330 33,927 17,808 16,119 238,285 6 330,264 155,595 174,669 2,190,947 296,337 138,915 157,422 1,969,908 33,927 16,680 17,247 221,039 7 330,264 144,108 186,156 2,004,791 296,337 128,635 167,702 1,802,205 33,927 15,473 18,454 202,585 8 330,264 131,865 198,399 1,806,392 296,337 117,684 178,653 1,623,552 33,927 14,181 19,746 182,840 9 330,264 118,817 211,447 1,594,945 296,337 106,018 190,319 1,433,233 33,927.12,799 21,128 161,712 10 330,264 104,910 225,354 1,369,591 296,337 93,590 202,747 1,230,485 33,927 11,320 22,607 139,106 11 330,264 90,088 240,176 1,129,415 296,337 80,351 215,986 1,014,499 33,927 9,737 24,190 114,916 12 330,264 74,291 255,973 873,442 296,337 66,247 230,090 784,409 33,927 8,044 25,883 89,034 13 330,264 57,454 272,810 600,632 296,337 51,222 245,115 539,293 33,927 6,232 27,695 61,339 14 330,264 39,510 290,754 309,878 296,337 35,216 261,121 278,172 33,927 4,294 29,633 31,706 15 330,264 20,384 309,880 "1 296,337 18,165 278,172 0 33,927 2,219 31,708 -1 Total AIDEA Portion Bank Portion 20 Year Rate:Rate: 3,000,000 Needed 6.67%2,700,000 Needed 7.00%300,000 Needed Payment Interest Principal 90,000 Fee Payment Interest Principal 81,000 Fee Payment _[nterest Principal 9,000 Fee 3,090,000 Loan 2,781,000 Loan 309,000 Loan 1 284,980 207,123 77,857 3,012,143 255,812 185,493 70,319 2,710,681 29,167 21,630 7,537 301,463 2 284,980 201,904 83,076 2,929,068 255,812 180,802 75,010 2,635,671 29,167 21,102 8,065 293,397 3 284,980 196,337 88,643 2,840,425 255,812 175,799 80,013 2,555,658 29,167 20,538 8,629 284,768 4 284,980 190,396 94,584 2,745,842 255,812 170,462 85,350 2,470,308 29,167 19,934 9,233 275,534 5 284,980 184,057 100,923 2,644,919 255,812 164,770 91,042 2,379,265 29,167 19,287 9,880 265,654 6 284,980 177,293 107,687 2,537,233 255,812 158,697 97,115 2,282,150 29,167 18,596 10,571 255,083 7 284,980 170,075 114,905 2,422,328 255,812 152,219 103,593 2,178,557 29,167 17,856 11,314 243,771 8 284,980 162,374 122,606 2,299,723 255,812 145,310 110,502 2,068,055 29,167 17,064 12,103 231,668 9 284,980 154,156 130,824 2,168,899 255,812 137,939 117,873 1,950,182 29,167 16,217 12,950 218,717 10 284,980 145,387 139,593 2,029,307 255,812 130,077 125,735 1,824,447 29,167 15,310 13,857 204,860 11 284,980 136,031 148,949 1,880,358 255,812 121,691 134,121 1,690,326 29,167 14,340 =14,827 190,032 42 284,980 126,047 158,933 1,721,426 255,812 112,745 143,067 1,547,259 29,167 13,302 15,865 174,167 13 284,980 115,394 169,586 1,551,840 255,812 103,202 152,610 1,394,649 29,167 12,192 16,975 157,192 14 284,980 104,026 180,954 1,370,887 255,812 93,023 162,789 1,231,860 29,167 11,003 18,164 139,027 15 284,980 91,897 193,083 1,177,804 255,812 82,165 173,647 1,058,212 29,167 9,732 19,435 119,592 16 284,980 78,954 206,026 971,779 255,812 70,583 185,229 872,983 29,167 8,371 20,796 98,795 17 284,980 65,144 219,836 751,943 255,812 58,228 197,584 675,399 29,167 6,916 22,251 76,544 18 284,980 50,407 234,573 517,371 255,812 45,049 210,763 464,636 29,167 5,358 23,809 52,735 19 284,980 34,682 250,298 267,073 255,812 30,991 224,821 239,815 29,167 3,691 25,476 27,258 20 284,980 17,904 267,076 -2 255,812 15,996 239,816 -1 29,167 1,908 27,259 -1 8/8/2005 5:17 PM H:\ALL\VALORIE\SECURE\Excel Files\PROJECTS\AkintertieFinancingScenario.xls_3million Taxable Revenue Bonds $3 million 7 years SOURCES AND USES OF FUNDS Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $3 Million in Proceeds,7-Year Amortization Sources: Bond Proceeds: Par Amount 3,505,000.00 3,505,000.00 . Uses: Project Fund Deposits: Deposit to Project Fund Other Fund Deposits: Debt Service Reserve Fund Delivery Date Expenses: Cost of Issuance Underwriter's Discount Other Uses of Funds: Contingency 3,000,000:00 350,500.00 41,999.15 111,287.50 153,286.65 1,213.35 -3,505,000.00 BOND DEBT SERVICE Alaska Energy Authority Rail Belt Utility Group Intertie Project -Taxable Revenue Bonds,Series 2006 $3 Million in Proceeds,7-Year Amortization Annual Period ,, Debt Ending -Principal Coupon Interest Debt Service Service 01/01/2006 |, 07/01/2006 96,387.50.96,387.50 01/01/2007 425,000 5.500%96,387.50 _521,387.50 617,775 07/01/2007.-84,700.00 84,700.00 01/01/2008 445,000 5.500%84,700.00 529,700.00 614,400 07/01/2008 72,462.50 _72,462.50 . 01/01/2009 .470,000 5.500%72,462.50 $42,462.50 614,925 07/01/2009 .59,537.50 59,537.50 01/01/2010 500,000 5.500%59,537.50 559,537.50 619,075 07/01/2010 45,787.50 45,787.50 01/01/2011 525,000 5.500%45,787.50 570,787.50 616,575 07/01/2011 31,350.00 31,350.00 i 01/01/2012 »355,000 $.500%-31,350.00 586,350.00 617,700 07/01/2012 16,087.50 16,087.50 01/01/2013 "585,000 5.500%16,087.50 601,087.50 617,175 © 3,505,000 812,625.00 4,3 17,625.00 4,317,625 NET DEBT SERVICE Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $3 Million in Proceeds,7-Year Amortization Period Total -Debt Service Net Ending Debt Service Reserve Fund Debt Service - 01/01/2007 617,775 15,001.40 602,773.60 01/01/2008 614,400 _15,001.40 $99,398.60 01/01/2009 614,925 15,001.40 599,923.60 01/01/2010 619,075 15,001.40 604,073.60 01/01/2011 616,575 15,001.40 601,573.60 01/01/2012 617,700 15,001.40 602,698.60 01/01/2013 617,175 365,501.40 251,673.60 4,317,625 455,509.80 3,862,115.20 -Taxable Revenue Bonds | $3 million | 15 years SOURCES AND USES OF FUNDS Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $3 Million in Proceeds,15-Year Amortization Sources: "Bond Proceeds: Par Amount 3,505,000.00 3,505,000.00 Uses: Project Fund Deposits: Deposit to Project Fund Other Fund Deposits: Debt Service Reserve Fund Delivery Date Expenses:_ Cost of Issuance Underwriter's Discount Other Uses of Funds: Contingency 3,000,000.00 350,500.00 41,999.15 111,287.50 153,286.65 1,213.35 3,505,000.00 BOND DEBT SERVICE Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 . $3 Million in Proceeds,15-Year Amortization Annual Period Debt Debt Ending Principal Coupon Interest Service Service 01/01/2006 07/01/2006 98,140 98,140 01/01/2007 155,000 5.600%98,140 253,140 351,280 07/01/2007 ,93,800 93,800 01/01/2008 165,000 5.600%93,800 258,800 352,600 07/01/2008 89,180 89,180 01/01/2009 175,000 5.600%89,180 264,180 353,360 07/01/2009 84,280 84,280 01/01/2010 185,000 5.600%84,280 269,280 353,560 07/01/2010 ._79,100 79,100 01/01/2011 195,000 5.600%79,100 -274,100 353,200 07/01/2011 73,640 73,640 01/01/2012 205,000 5.600%73,640 278,640 352,280 07/01/2012 67,900 67,900 01/01/2013 215,000 5.600%67,900 282,900 350,800 07/01/2013 61,880 61,880 , 01/01/2014 225,000 5.600%61,880 286,880 348,760 07/01/2014 55,580 55,580 01/01/2015 240,000 5.600%55,580 295,580 -351,160 07/01/2015 48,860 48,860 01/01/2016 255,000 5.600%48,860 303,860 352,720 97/01/2016 .41,720 41,720 01/01/2017 265,000 5.600%41,720 306,720 348,440 07/01/2017 : 34,300 34,300 01/01/2018 280,000 5.600%34,300 314,300 348,60007/01/2018 ;26,460 26,460 01/01/2019 300,000 5.600%26,460 326,460 352,920 07/01/2019 18,060 18,060 01/01/2020 315,000 5.600%18,060 333,060 351,12007/01/2020 9,240 9,240 01/01/2021 330,000 5.600%9,240 339,240 348,480 3,505,000 1,764,280 5,269,280 5,269,280 NET DEBT SERVICE Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $3 Million in Proceeds,15-Year Amortization Period Total Debt Service Net Ending Debt Service Reserve Fund Debt Service 01/01/2007 351,280 16,158.06 335,121.94 01/01/2008 352,600 16,158.06 336,441.94 01/01/2009 353,360 16,158.06 337,201.94 01/01/2010 353,560 16,158.06 337,401.94 01/01/2011 .353,200 16,158.06 337,041.94 01/01/2012 352,280 16,158.06 336,121.94 01/01/2013 350,800 16,158.06 334,641.94 01/01/2014 348,760 16;158.06 332,601.94 01/01/2015 351,160 16,158.06 335,001.94 01/01/2016 352,720 16,158.06 -336,561.94 01/01/2017 348,440 16,158.06 332,281.94 01/01/2018 348,600 16,158.06 332,441.94 01/01/2019 352,920 16,158.06 336,761.94 01/01/2020 351,120 16,158.06 334,961.94 01/01/2021 348,480 366,658.06 -18,178.06 5,269,280 392,870.90 4,676,409.10 - -Taxable Revenue Bonds $3 million 20 years SOURCES AND USES OF FUNDS Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $3 Million in Proceeds,20-Year Amortization Sources: Bond Proceeds: Par Amount 3,455,000.00 3,455,000.00 Uses: Project Fund Deposits: Deposit to Project Fund 3,000,000.00 Other Fund Deposits:. Debt Service Reserve Fund 299,080.00 Delivery Date Expenses: Cost of Issuance 41,809.65 Underwriter's Discount 110,912.50 152,722.15 Other Uses of Funds: Contingency 3,197.85 3,455,000.00 BOND DEBT SERVICE Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $3 Million in Proceeds,20-Year Amortization :Annual Period Debt Debt Ending Principal Coupon Interest Service Service 01/01/2006 07/01/2006 100,195 100,195. 01/01/2007 95,000 5.800%-100,195 195,195 _295,390 07/01/2007 97,440 97,440 01/01/2008 -100,000 5.800%97,440 197,440 294,880 07/01/2008 94,540 94,540 01/01/2009 110,000 * $.800%94,540 204,540 299,080 07/01/2009 91,350 -91,350 01/01/2010 115,000 5.800%91,350 206,350 297,700 07/01/2010 88,015 88,015 01/01/2011 120,000 5.800%88,015 208,015 296,030 07/01/2011 84,535 84,535 01/01/2012 125,000 5.800%84,535 209,535 294,070 07/01/2012 80,910 80,910 ; 01/01/2013 -135,000 5.800%80,910 215,910 296,820 07/01/2013 76,995 76,995 01/01/2014 140,000 5.800%76,995 216,995 293,990 07/01/2014 72,935 72,935 01/01/2015 150,000 5.800%72,935 222,935 295,870 07/01/2015 ; oi.68,585 68,585 . 01/01/2016 160,000 5.800%68,585 228,585 297,170 07/01/2016 63,945 63,945 01/01/2017 170,000 5.800%63,945 '233,945 297,890 07/01/2017 -59,015 59,015 01/01/2018 180,000 5.800%59,015 239,015 298,030 07/01/2018 53,795 53,795 01/01/2019 190,000 5.800%53,795 243,795 297,590 07/01/2019 48,285 48,285 01/01/2020 200,000 5.800%48,285 248,285 296,570 07/01/2020 :42,485 42,485 . 01/01/2021 210,000 5.800%42,485 252,485 294,970 07/01/2021 36,395 36,395 01/01/2022 225,000 5.800%36,395 261,395 297,790 07/01/2022 : ;29,870 29,870 01/01/2023 235,000 5.800%29,870 264,870 294,740 07/01/2023 23,055 23,055 01/01/2024 250,000 5.800%23,055 273,055 296,11007/01/2024 ©15,805 15,805 : 01/01/2025 265,000 5.800%15,805 _280,805 296,610 07/01/2025 8,120 8,120 . 01/01/2026 280,000 5.800%8,120 288,120 296,240 3,455,000 2,472,540 5,927,540 5,927,540 NET DEBT SERVICE Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $3 Million in Proceeds,20-Year Amortization Period Total Debt Service Net Ending Debt Service Reserve Fund Debt Service 01/01/2007 295,390 13,937.12.281,452.88 01/01/2008 294,880 13,937.12 280,942.88 01/01/2009 299,080 13,937.12 285,142.88 01/01/2010 297,700 13,937.12 283,762.88 01/01/2011 296,030 13,937.12 282,092.88 01/01/2012 294,070 13,937.12 280,132.88 01/01/2013 296,820 13,937.12 282,882.88 01/01/2014 293,990 13,937.12 280,052.88 01/01/2015 295,870 13,937.12 281,932.88 01/01/2016 297,170 .13,937.12 283,232.88 01/01/2017 297,890 13,937.12 283,952.88 01/01/2018 298,030 13,937.12 284,092.88 01/01/2019 297,590 13,937.12 283,652.88 01/01/2020 296,570 13,937.12 282,632.88 01/01/2021 294,970 13,937.12 281,032.88 01/01/2022 297,790 13,937.12 283,852.88 01/01/2023 294,740 13,937.12 280,802.88 01/01/2024 _.296,110 13,937.12 282,172.88 01/01/2025 296,610 13,937.12 282,672.88 01/01/2026 296,240 313,017.12 -16,777.12 5,927,540 577,822.40 5,349,717.60 AIDEA Loan Participation - $5 million | 7,15 and 20 years © NOOhWD=OONOOARWHN=OONONAWDH=Alaska Intertie Financing Scenario AIDEA Loan Participation Program $5 Million Net Proceeds 8/8/2005 5:27 PM H:\ALL\WALORIE\SECURE\Excel Files\PROJECTSUkintertieFinancingScenario.xls Smillion Total AIDEA Portion Bank Portion 3 Fee % 7 Year Rate:Rate: 5,000,000 Needed 5.87%4,500,000 Needed 7.00%500,000 Needed Payment Interest Principal 150,000 Fee Payment Interest Principal 135,000 Fee Payment Interest Principal 15,000 Fee 5,150,000 Loan 4,635,000 Loan 515,000 Loan 922,018 308,125 613,893 4,536,107 826,458 272,075 554,383 4,080,617 95,560 36,050 59,510 455,490 922,018 271,416 650,602 3,885,504 826,458 239,532 586,926 3,493,690 95,560 31,884 63,676 391,814 922,018 232,507 689,511 3,195,993 826,458 205,080 621,378 2,872,312 95,560 27,427 68,133 323,681 922,018 191,263 730,755 2,465,238 826,458 168,605 657,853 2,214,458 95,560 22,658 72,902 250,779 922,018 147,544 774,474 1,690,764 826,458 129,989 696,469 1,517,989 95,560 17,555 78,005 172,774 922,018 101,200 820,818 869,945 826,458 89,106 737,352 780,637 95,560 12,094 83,466 89,309 922,018 52,075 869,943 2 826,458 45,823 780,635 4 95,560 6,252 89,308 1 Total AIDEA Portion Bank Portion 15 Year Rate:Rate: 5,000,000 Needed 6.53%4,500,000 Needed 7.00%500,000 Needed Payment Interest Principal 150,000 Fee Payment Interest Principal 135,000 Fee Payment Interest Principal 15,000 Fee 5,150,000 Loan 4,635,000 Loan 515,000 Loan 550,440 338,716 211,724 4,938,276 493,896 302,666 191,230 4,443,770 56,544 36,050 20,494 494,506 550,440 324,793 225,647 4,712,629 493,896 290,178 203,718 4,240,053 66,544 34,615 21,929 472,577 550,440 309,955 240,485 4,472,145 493,896 276,875 217,021 4,023,032 56,544 33,080 23,464 449,112 §50,440 294,142 256,298 4,215,847 493,896 262,704 231,192 3,791,841 56,544 31,438 25,106 424,006 550,440 277,287 273,153 3,942,694 493,896 247,607 246,289 3,545,552 56,544 29,680 26,864 397,142 550,440 259,325 291,115 3,651,579 493,896 231,525 262,371 3,283,181 56,544 27,800 28,744 368,398 550,440 240,180 310,260 3,341,319 493,896 214,392 279,504 3,003,678 56,544 25,788 30,756 337,641 550,440 219,775 330,665 3,010,654 493,896 196,140 297,756 2,705,922 56,544 23,635 32,909 304,732 550,440 198,028 352,412 2,658,243 493,896 176,697 317,199 2,388,724 56,544 21,331 35,213 269,519 550,440 174,850 375,590 2,282,653 493,896 155,984 337,912 2,050,812 56,544 18,866 37,678 231,841 550,440 150,147 400,293 1,882,360 493,896 133,918 359,978 1,690,834 56,544 16,229 40,315 191,525 550,440 123,818 426,622 1,455,738 493,896 110,411 383,485 1,307,350 56,544 13,407 43,137 148,388 550,440 95,757 454,683 1,001,055 493,896 85,370 408,526 898,824 56,544 10,387 46,157 102,231 550,440 65,849 484,591 516,464 493,896 58,693 435,203 463,622 56,544 7,156 49,388 52,843 550,440 33,973 516,467 -2 493,896 30,274 463,622 0 56,544 3,699 52,845 -2 Total AIDEA Portion Bank Portion 20 Year Rate:Rate: 5,000,000 Needed 6.67%4,500,000 Needed 7.00%500,000 Needed Payment interest Principal 150,000 Fee Payment Interest -Principal 135,000 Fee Payment interest Principal 15,000 Fee 5,150,000 Loan 4,635,000 Loan 515,000 Loan 474,966 345,205 129,761 5,020,239 426,354 309,155 117,199 4,517,801 48,612 36,050 12,562 502,438 474,966 336,508 138,458 4,881,781 426,354 301,337 125,017 4,392,785 48,612 35,171 13,441 488,996 474,966 327,229 147,737 4,734,044 426,354 292,999 133,355 4,259,430 48,612 34,230 14,382 474,614 474,966 317,327 157,639 4,576,406 426,354 284,104 142,250 4,117,181 48,612 33,223 15,389 459,225 474,966 306,762 168,204 4,408,202 426,354 274,616 151,738 3,965,443 48,612 32,146 16,466 442,758 474,966 295,488 179,478 4,228,724 426,354 264,495 161,859 3,803,585 48,612 30,993 17,619 425,139 474,966 283,459 191,507 4,037,217 426,354 253,699 172,655 3,630,930 48,612 29,760 18,852 406,287 474,966 270,623 204,343 3,832,874 426,354 242,183 184,171 3,446,760 48,612 28,440 20,172 386,114 474,966 256,927 218,039 3,614,835 426,354 229,899 196,455 3,250,305 48,612 27,028 21,584 364,530 474,966 242,312 232,654 3,382,181 426,354 216,795 209,559 3,040,747 48,612 25,517 23,095 341,434 474,966 226,718 248,248 3,133,933 426,354 202,818 223,536 2,817,211 48,612 23,900 24,712 316,722 474,966 210,079 264,887 2,869,047 426,354 187,908 238,446 2,578,766 48,612 22,171 26,441 290,281 474,966 192,324 282,642 2,586,405 426,354 172,004 254,350 2,324,416 48,612 20,320 28,292 261,988 474,966 173,378 301,588 2,284,817 426,354 155,039 271,315 2,053,102 48,612 18,339 30,273 231,715 474,966 153,162 321,804 1,963,013 426,354 136,942 289,412 1,763,690 48,612 16,220 32,392 199,323 474,966 131,591 343,375 1,619,638 426,354 117,638 308,716 1,454,975 48,612 13,953 34,659 164,663 474,966 108,573 366,393 1,253,245 426,354 97,047 329,307 1,125,668 48,612 11,526 37,086 127,577 474,966 84,012 390,954 862,291 426,354 75,082 351,272 774,397 48,612 8,930 39,682 87,895 474,966 57,805 417,161 445,131 426,354 51,652 374,702 399,695 48,612 6,153 42,459 45,435 474,966 29,840 445,126 5 426,354 26,660 399,694 2 48,612 3,180 45,432 3 Taxable Revenue Bonds $5 million 7 years SOURCES AND USES OF FUNDS Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $5 Million in Proceeds,7-Year Amortization Sources: Bond Proceeds: Par Amount 5,755,000.00 5,755,000.00 Uses: Project Fund Deposits: Deposit to Project Fund -§,000,000.00 Other Fund Deposits: -Debt Service Reserve Fund $75,500.00 Delivery Date Expenses: Cost of Issuance _49,088.65 Underwriter's Discount 128,162.50 177,251.15 Other Uses of Funds:Contingency 2,248.85 5,755,000.00 BOND DEBT SERVICE Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $5 Million in Proceeds,7-Year Amortization Annual Period Debt Ending Principal Coupon Interest Debt Service Service 01/01/2006 07/01/2006 158,262.50 '158,262.50 01/01/2007 695,000 5.500%158,262.50 853,262.50 "1,011,525 07/01/2007 139,150.00 139,150.00 01/01/2008 735,000 5.500%139,150.00 874,150.00 1,013,300 07/01/2008 118,937.50 118,937.50 01/01/2009 775,000 5.500%118,937.50 893,937.50 1,012,875 07/01/2009 97,625.00 97,625.00 01/01/2010 820,000 5.500%97,625.00 917,625.00 1,015,250 07/01/2010 75,075.00 75,075.00 01/01/2011 860,000 5.500%75,075.00 935,075.00 1,010,150 07/01/2011 51,425.00 51,425.00 01/01/2012 910,000 5.500%51,425.00 961,425.00 1,012,850 07/01/2012 26,400.00 26,400.00 01/01/2013 960,000 5.500%26,400.00 986,400.00 1,012,800 5,755,000 -1,333,750.00 7,088,750.00 7,088,750 NET DEBT SERVICE Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $5 Million in Proceeds,7-Year Amortization Period Total Debt Service Net Ending Debt Service Reserve Fund Debt Service 01/01/2007 1,011,525 24,631.40 986,893.60 01/01/2008 1,013,300 24,631.40 988,668.60 01/01/2009 1,012,875 24,631.40 988,243.60 01/01/2010 1,015,250 24,631.40 990,618.60 01/01/2011 1,010,150 24,631.40 985,518.60 01/01/2012 |1,012,850 24,631.40 988,218.60 01/01/2013 1,012,800 600,131.40 412,668.60 7,088,750 747,919.80 6,340,830.20 Taxable Revenue Bonds $5 million 15 years SOURCES AND USES OF FUNDS Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $5 Million in Proceeds,15-Year Amortization Sources: Bond Proceeds: Par Amount §,755,000.00 5,755,000.00 Uses: Project Fund Deposits: Deposit to Project Fund 5,000,000.00 Other Fund Deposits: Debt Service Reserve Fund §75,500.00 Delivery Date Expenses:. Cost of Issuance 49,088.65 Underwriter's Discount 128,162.50 177,251.15 Other Uses of Funds:. Contingency 2,248.85 5,755,000.00 'BOND DEBT SERVICE Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 "$5 Million in Proceeds,15-Year Amortization .Annual Period .Debt Debt Ending Principal Coupon Interest Service Service 01/01/2006 07/01/2006 161,140 161,140 01/01/2007 255,000 5.600%161,140 416,140 $77,280 07/01/2007 154,000 154,000 01/01/2008 270,000 5.600%154,000 424,000 $78,000 07/01/2008 146,440 146,440 01/01/2009 285,000 5.600%'146,440 431,440 577,880 07/01/2009 138,460 138,460 : 01/01/2010 300,000 5.600%138,460 438,460 376,920 07/01/2010 130,060 130,060 01/01/2011 315,000 5.600%130,060 445,060 §75,120 07/01/2011 121,240 121,240 . 01/01/2012 335,000 5.600%121,240 456,240 $77,480 07/01/2012 :111,860 111,860 . 01/01/2013 355,000 5.600%111,860 466,860 578,720 07/01/2013 101,920 .101,920 01/01/2014 375,000 5.600%101,920 476,920 578,840 07/01/2014 91,420 91,420 01/01/2015 395,000 5.600%91,420 486,420 577,840 07/01/2015 80,360 80,360 01/01/2016 415,000 5.600%80,360 495.360 575,720 07/01/2016 68,740 68,740 01/01/2017 440,000 5.600%68,740 508,740 577,480 07/01/2017 56,420 ,56,420 01/01/2018 465,000 5.600%56,420 521,420 $77,840 07/01/2018 43,400 43,400 01/01/2019 490,000 5.600%-43,400 533,400 576,800 07/01/2019 29,680 29,680 . 01/01/2020 $15,000 5.600%29,680 544,680 574,360 07/01/2020 15,260 15,260 01/01/2021 545,000 5.600%15,260 560,260 575,520 5,755,000 2,900,800 8,655,800 8,655,800 NET DEBT SERVICE Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $5 Million in Proceeds,15-Year Amortization Period Total Debt Service Net Ending Debt Service Reserve Fund Debt Service 01/01/2007 577,280 26,530.56 550,749.44 01/01/2008 578,000 26,530.56 551,469.44 01/01/2009 577,880 26,530.56 $51,349.44 01/01/2010 576,920 26,530.56 550,389.44 01/01/2011 $75,120 26,530.56 548,589.44 01/01/2012 577,480 26,530.56 550,949.44 01/01/2013 578,720 26,530.56 $52,189.44 01/01/2014 :578,840 26,530.56 552,309.44 01/01/2015 577,840 26,530.56 551,309.44 01/01/2016 $75,720 26,530.56 549,189.44 01/01/2017 577,480 26,530.56 550,949.44 01/01/2018 577,840 26,530.56 551,309.44 01/01/2019 576,800 26,530.56 550,269.44 01/01/2020 574,360 26,530.56 547,829.44 01/01/2021 $75,520 602,030.56 --26,510.56 8,655,800 973,458.40 7,682,341.60 Taxable Revenue Bonds $5 million | 20 years SOURCES AND USES OF FUNDS Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $5 Million in Proceeds,20-Year Amortization Sources: Bond Proceeds: Par Amount 5,670,000.00 §,670,000.00 Uses: 'Project Fund Deposits:Deposit to Project Fund 5,000,000.00 Other Fund Deposits: Debt Service Reserve Fund 489,130.00 Delivery Date Expenses: Cost of Issuance 48,926.10 Underwriter's Discount 127,525.00 176,451.10 Other Uses of Funds: Contingency -4,418.90 5,670,000.00 BOND DEBT SERVICE Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $5 Million in Proceeds,20-Year Amortization Annual Period .Debt Debt Ending .Principal Coupon Interest Service Service 01/01/2006 07/01/2006 164,430 164,430 01/01/2007 160,000 5.800%164,430 324,430 488,860 07/01/2007 159,790 159,790 01/01/2008 165,000 5.800%159,790 324,790 484,580 07/01/2008 155,005 155,005 01/01/2009 175,000 5.800%155,005 330,005 485,010 07/01/2009 149,930 149,930 01/01/2010 185,000 5.800%149,930 334,930 484,860 07/01/2010 144,565 144,565 01/01/2011 200,000 5.800%144,565 344,565 489,130 07/01/2011 138,765 138,765 01/01/2012 210,000 5.800%138,765 348,765 487,530 07/01/2012 132,675 132,675 01/01/2013 220,000 5.800%132,675 352,675 485,350 07/01/2013 126,295 126,295 Oo 01/01/2014 235,000 5.800%126,295 361,295 487,590 *07/01/2014 ,119,480 119,480 01/01/2015 245,000 5.800%119,480 364,480 483,960 07/01/2015 112,375 112,375 01/01/2016 260,000 5.800%112,375 372,375 484,750 07/01/2016 104,835 104,835 01/01/2017,275,000 .5.800%104,835 379,835 484,670 07/01/2017 96,860 96,860 01/01/2018 295,000 5.800%96,860 391,860 488,720 07/01/2018 88,305 88,305 01/01/2019 310,000 5.800%88,305 398,305 486,610 07/01/2019 79,315 79,315 01/01/2020 330,000 5.800%79,315 409,315 488,630 07/01/2020 69,745 69,745 01/01/2021 345,000 5.800%69,745 414,745 484,490 07/01/2021 59,740 59,740 01/01/2022 365,000 5.800%59,740 424,740 484,480 07/01/2022 :49.155 49.155 01/01/2023 390,000 5.800%.49,155 439,155 488,310 07/01/2023 37,845 37,845 01/01/2024 410,000 5.800%37,845 447,845 485,690 07/01/2024 25,955 25,955 ° 01/01/2025 435,000 |5.800%25,955 460,955 486,910 07/01/2025 ;13,340 13,340 01/01/2026 460,000 5.800%13,340 473,340 486,680 5,670,000 4,056,810 9,726,810 9,726,810 NET DEBT SERVICE Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $5 Million in Proceeds,20-Year Amortization Period Total Debt Service Net Ending Debt Service Reserve Fund Debt Service 01/01/2007 488,860 22,793.46 466,066.54 01/01/2008 484,580 22,793.46 461,786.54 01/01/2009 485,010 22,793.46 462,216.54 01/01/2010 484,860 22,793.46 462,066.54 01/01/2011 489,130 22,793.46 466,336.54 01/01/2012 487,530 22,793.46 464,736.54 01/01/2013 485,350 22,793.46 462,556.54 01/01/2014 487,590 22,793.46 464,796.54 01/01/2015 483,960 22,793.46 461,166.54 01/01/2016 484,750 22,793.46 -461,956.54 01/01/2017 484,670 22,793.46 461,876.54 01/01/2018 488,720 22,793.46 465,926.54 01/01/2019 486,610_22,793.46 463,816.54 01/01/2020 488,630 22,793.46 465,836.54 01/01/2021 484,490 22,793.46 461,696.54 01/01/2022 484,480 22,793.46 461,686.54 01/01/2023 488,310 22,793.46 465,516.54 01/01/2024 485,690 22,793.46 462,896.54 01/01/2025 *486,910 22,793.46 464,116.54 01/01/2026 486,680 511,923.46.-25,243.46 9,726,810 944,999.20 8,781,810.80 AIDEA Loan Participation | $7 million 7,15 and 20 years Alaska Intertie Financing Scenario AIDEA Loan Participation Program $7 Million Net Proceeds Total AIDEA Portion Bank Portion 3 Fee % 7 Year Rate:Rate: 7,000,000 Needed 5.87%6,300,000 Needed 7.00%700,000 Needed Payment Interest Principal 210,000 Fee Payment Interest Principal _189,000 Fee Payment Interest Principal 21,000 Fee 7,210,000 Loan 6,489,000 Loan 721,000 Loan 1 1,290,826 431,374 859,452 6,350,548 1,157,042 380,904 776,138 5,712,862 133,784 50,470 83,314 637,686 2 1,290,826 379,983 910,843 5,439,706 1,157,042 335,345 821,697 4,891,166 133,784 44,638 89,146 548,540 3 1,290,826 325,509 965,317 4,474,389 1,157,042 287,111 869,931 4,021,235 133,784 38,398 95,386 453,154 4 1,290,826 267,767 1,023,059 3,451,331 1,157,042 236,046 920,996 3,100,239 133,784 31,721 102,063 351,092 5 1,290,826 206,560 1,084,266 2,367,065 1,157,042 181,984 975,058 2,125,181 133,784 24,576 109,208 241,884 6 1,290,826 141,680 1,149,146 1,217,919 4,157,042 124,748 1,032,294 1,092,888 133,784 16,932 116,852 125,032 7 1,290,826 72,904 1,217,922 -2 1,157,042 64,152 1,092,890 -2 133,784 8,752 125,032 0 Total AIDEA Portion Bank Portion 15 Year Rate:Rate: 7,000,000 Needed 6.53%6,300,000 Needed 7.00%700,000 Needed Payment Interest Principal 210,000 Fee Payment Interest Principal 189,000 Fee Payment Interest Principal 21,000 Fee 7,210,000 Loan 6,489,000 Loan 721,000 Loan 1 770,616 474,202 296,414 6,913,586 691,454 423,732 267,722 6,221,278 79,162 50,470 28,692 692,308 2 770,616 454,711 315,905 6,597,681 691,454 406,249 285,205 5,936,073 79,162 48,462 30,700 661,608 3 770,616 433,939 336,677 6,261,005 691,454 387,626 303,828 5,632,245 79,162 46,313 32,849 628,759 4 770,616 411,799 358,817 5,902,188 691,454 367,786 323,668 5,308,578 79,162 44,013 35,149 593,610 5 770,616 388,203 382,413 5,519,775 691,454 346,650 344,804 4,963,774 79,162 41,553 37,609 556,001 6 770,616 363,054 407,562 5,112,213 691,454 324,134 367,320 4,596,454 79,162 38,920 40,242 515,759 7 770,616 336,251 434,365 4,677,849 691,454 300,148 391,306 4,205,148 79,162 36,103 43,059 472,701 8 770,616 307,685 462,931 4,214,918 691,454 274,596 416,858 3,788,290 79,162 33,089 46,073 426,628 9 770,616 277,239 493,377 3,721,541 691,454 247,375 444,079 3,344,211 79,162 29,864 49,298 377,330 10 770,616 244,790 525,826 3,195,715 691,454 218,377 473,077 2,871,135 79,162 26,413 52,749 324,581 11 770,616 210,206 560,410 2,635,306 691,454 187,485 503,969 2,367,166 79,162 22,721 56,441 268,140 12 770,616 173,346 597,270 2,038,036 691,454 154,576 536,878 1,830,288 79,162 18,770 60,392 207,748 13.770,616 134,060 636,556 1,401,480 691,454 119,518 571,936 1,258,352 79,162 14,542 64,620 143,128 14 770,616 92,189 678,427 723,053 691,454 82,170 609,284 649,068 79,162 10,019 69,143 73,985 15 770,616 47,563 723,053 1 691,454 42,384 649,070 -2 79,162 5.179 73,983 2 Total AIDEA Portion Bank Portion 20 Year Rate:Rate: 7,000,000 Needed 6.67%6,300,000 Needed 7.00%700,000 Needed Payment Interest Principal _210,000 Fee Payment {Interest Principal _189,000 Fee Payment Interest _Principal 21,000 Fee 7,210,000 Loan 6,489,000 Loan 721,000 Loan 1 664,952 483,286 181,666 7,028,334 596,895 432,816 164,079 6,324,921 68,057 50,470 17,587 703,413 2 664,952 471,111 193,841 6,834,493 596,895 421,872 175,023 6,149,898 68,057 49,239 18,818 684,594 3 664,952 458,120 206,832 6,627,660 596,895 410,198 186,697 5,963,201 68,057 47,922 20,135 664,459 4 664,952 444,258 220,694 6,406,966 596,895 397,746 199,149 5,764,052 68,057 46,512 21,545 642,914 5 664,952 429,466 235,486 6,171,480 596,895 384,462 212,433 5,551,619 68,057 45,004 23,053 619,861 6 664,952 413,683 251,269 5,920,211 596,895 370,293 226,602 5,325,018 68,057 43,390 24,667 595,193 7 664,952 396,843 268,109 5,652,102 596,895 355,179 241,716 5,083,302 68,057 41,664 26,393 568,800 8 664,952 378,872 286,080 5,366,021 596,895 339,056 257,839 4,825,463 68,057 39,816 28,241 540,559 9 664,952 359,697 305,255 5,060,766 596,895 321,858 275,037 4,550,426 68,057 =37,839 =30,218 §=-_10,340 10 664,952 339,237 325,715 4,735,051 596,895 303,513 293,382 4,257,044 68,057 35,724 32,333 478,007 41 664,952 317,405 347,547 4,387,504 596,895 283,945 312,950 3,944,094 68,057 33,460 34,597 443,410 12 664,952 294,110 370,842 4,016,661 596,895 263,071 333,824 3,610,270 68,057 31,039 37,018 406,391 13.664,952 269,252 395,700 3,620,961 596,895 240,805 356,090 3,254,180 68,057 28,447 39,610 366,781 14 664,952 242,729 422,223 3,198,738 596,895 217,054 379,841 2,874,339 68,057 25,675 42,382 324,399 15 664,952 214,426 450,526 2,748,212 §96,895 191,718 405,177 2,469,162 68,057 922,708 45,349 279,050 16 664,952 184,226 480,726 2,267,486 596,895 164,693 432,202 2,036,960 68,057 19,533 48,524 230,525 17 664,952 152,002 512,950 1,754,535 596,895 135,865 461,030 1,575,930 68,057 16,137 51,920 178,605 18 664,952 117,617 547,335 1,207,200 596,895 105,115 491,780 1,084,151 68,057 12,502 55,555 423,050 19 664,952 80,926 584,026 623,174 596,895 72,313 524,582 559,569 68,057 8613 59,444 63,605 20 664,952 41,775 623,177 -3 596,895 37,323 559,572 -3 68,057 4,452 63,605 0 8/8/2005 5:27 PM H:\ALL\VALORIE\SECURE\Excel Files\PROJECTS\AkIntertieFinancingScenario.xls_7million Taxable Revenue Bonds $7 million 7 years SOURCES AND USES OF FUNDS Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 _$7 Million in Proceeds,7-Year Amortization | Sources: Bond Proceeds: Par Amount 8,000,000.00 8,000,000.00 Uses: .Project Fund Deposits: Deposit to Project Fund Other Fund Deposits: Debt Service Reserve Fund Delivery Date Expenses: Cost of Issuance Underwriter's Discount Other Uses of Funds: Contingency 7,000,000.00 800,000.00 53,365.00 145,000.00 198,365.00 1,635.00 8,000,000.00 8BOND DEBT SERVICE Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $7 Million in Proceeds,7-Year Amortization Annual Period Debt Ending .Principal Coupon Interest Debt Service Service 01/01/2006 07/01/2006 220,000.00 220,000.00 01/01/2007 970,000 5.500%220,000.00 1,190,000.00 1,410,000 07/01/2007 193,325.00 193,325.00 01/01/2008 1,020,000 5.500%193,325.00 1,213,325.00 1,406,650 07/01/2008 165,275.00 165,275.00 01/01/2009 1,075,000 5.500%165,275.00 1,240,275.00 1,405,550 07/01/2009 .135,712.50 135,712.50 01/01/2010 1,135,000 5.500%135,712.50 1,270,712.50 1,406,425 07/01/2010 104,500.00 104,500.00 01/01/2011 1,200,000 5.500%104,500.00 1,304,500.00 1,409,000 07/01/2011 ;71,500.00 |71,500.00 01/01/2012 1,265,000 5.500%°71,500.00 1,336,500.00 1,408,000 07/01/2012 .36,712.50 36,712.50 01/01/2013 1,335,000 5.500%36,712.50 1,371,712.50 1,408,425 8,000,000 1,854,050.00 9,854,050.00 9,854,050 NET DEBT SERVICE Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $7 Million in Proceeds,7-Year Amortization Period Total Debt Service . Net Ending Debt Service Reserve Fund -Debt Service 01/01/2007 1,410,000 34,240 1,375,760 01/01/2008 1,406,650 34,240 1,372,410 01/01/2009 1,405,550 34,240 1,371,310 01/01/2010 1,406,425 34,240 1,372,185 01/01/2011 1,409,000 34,240 1,374,760 01/01/2012 "1,408,000 34,240 1,373,760 01/01/2013 1,408,425 834,240 $74,185 9,854,050 1,039,680 8;814,370 Taxable Revenue Bonds $7 million 15 years SOURCES AND USES OF FUNDS Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $7 Million in Proceeds,15-Year Amortization Sources: Bond Proceeds: Par Amount 8,000,000.00- 8,000,000.00 Uses: Project Fund Deposits: Deposit to Project Fund 7,000,000.00 Other Fund Deposits: Debt Service Reserve Fund 800,000.00 Delivery Date Expenses: Cost of Issuance 53,365.00 Underwriter's Discount 145,000.00 198,365.00 Other Uses of Funds: Contingency 1,635.00 8,000,000.00 BOND DEBT SERVICE Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $7 Million in Proceeds,15-Year Amortization ;Annual Period .Debt Debt Ending Principal Coupon Interest Service Service 01/01/2006 07/01/2006 224,000 224,000 01/01/2007 355,000 5.600%224,000 579,000 803,000 07/01/2007 214,060 214,060 01/01/2008 375,000 5.600%214,060 589,060 803,120 07/01/2008 :203,560 -203,560 01/01/2009 395,000 5.600%203,560 598,560 802,120 07/01/2009 -192,500 .192,500 01/01/2010 415,000 5.600%192,500 607,500 800,000 07/01/2010 180,880 180,880 01/01/2011 440,000 5.600%180,880 620,880 801,760 07/01/2011 .168,560 168,560 01/01/2012 465,000 5.600%168,560 633,560 802,12007/01/2012 155,540 155,54001/01/2013 490,000 5.600%155,540 645,540 801,080 07/01/2013 141,820 141,820 01/01/2014 520,000 -5.600%141,820 661,820 -803,640 07/01/2014 127,260 127,260 01/01/2015 550,000 5.600%127,260 677,260 804,520 07/01/2015 . :111,860 111,860 01/01/2016 580,000 5.600%111,860 691,860 803,720 07/01/2016 95,620 95,620 ° 01/01/2017 610,000 5.600%95,620 705,620 801,240 07/01/2017 :78,540 78,540 01/01/2018 645,000 5.600%78,540 723,540 802,080 07/01/2018 .60,480 60,480 01/01/2019 ;680,000 5.600%60,480 740,480 800,960 07/01/2019 41,440 41,440 01/01/2020 720,000 5.600%41,440 761,440 802,880 07/01/2020 21,280 21,280 01/01/2021 760,000 5.600%21,280 781,280 802,560 8,000,000 4,034,800 12,034,800 12,034,800 NET DEBT SERVICE Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $7 Million in Proceeds,15-Year Amortization Period Total Debt Service Net Ending Debt Service ReserveFund Debt Service 01/01/2007 803,000 "36,880 766,120 01/01/2008 803,120 36,880 '766,240 01/01/2009 802,120 36,880 765,240 01/01/2010 800,000 36,880 763,120 01/01/2011 801,760 36,880 764,880 01/01/2012 802,120 36,880 765,240 01/01/2013 :801,080 36,880 764,200 01/01/2014.803,640 36,880 766,760 01/01/2015 804,520 _36,880 767,640 01/01/2016 803,720 36,880 766,840 01/01/2017 801,240 36,880 764,360 01/01/2018 802,080 36,880 765,200 01/01/2019 800,960 36,880 764,080 01/01/2020 802,880 "36,880 766,000 01/01/2021 802,560 -836,880 -34,320 12,034,800 1,353,200 10,681,600 Taxable Revenue Bonds $7 million 20 years SOURCES AND USES OF FUNDS Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $7 Million in Proceeds,20-Year Amortization Sources: Bond Proceeds: Par Amount 7,875,000.00 7,875,000.00 Uses: Project Fund Deposits:. Deposit to Project Fund 7,000,000.00 Other Fund Deposits:: Debt Service Reserve Fund 677,050.00 Delivery Date Expenses: Cost of Issuance §3,127.25 Underwriter's Discount 144,062.50 197,189.75 Other Uses of Funds: Contingency 760.25 7,875,000.00 BOND DEBT SERVICE Alaska Energy Authority Rail Belt Utility Group Intertie Project .Taxable Revenue Bonds,Series 2006 $7 Million in Proceeds,20-Year Amortization Annual Period Debt Debt Ending Principal -Coupon Interest Service ©Service 01/01/2006 07/01/2006 228,375 228,375 01/01/2007 220,000 5.800%228,375 448,375 676,750 07/01/2007 221,995 221,995 01/01/2008 230,000 5.800%221,995 451,995 673,990 07/01/2008 215,325 215,325 01/01/2009 245,000 .5.800%215,325 460,325 675,650 07/01/2009 .208,220 208,220 : 01/01/2010 260,000 5.800%208,220 468,220 676,440 07/01/2010 200,680 200,680 01/01/2011 275,000 5.800%200,680 475,680 676,360 07/01/2011.192,705 192,705 01/01/2012 290,000 5.800%192,705 482,705 675,410 07/01/2012 184,295 184,295 01/01/2013 305,000 5.800%184,295 489,295 673,590 07/01/2013 175,450 175,450 01/01/2014 325,000 5.800%175,450 500,450 675,900 07/01/2014 166,025 166,025 01/01/2015 345,000 5.800%166,025 511,025 677,05007/01/2015 156,020 156,020 . 01/01/2016 365,000 5.800%156,020 521,020 677,040 07/01/2016 145,435 145,435 01/01/2017 385,000 5.800%145,435 530,435 675,870 07/01/2017 134,270 134,270 01/01/2018 405,000 5.800%134,270 $39,270 673,540 07/01/2018 122,525 122,525 01/01/2019 430,000 5.800%122,525 552,525 675,050 07/01/2019 110,055 110,055 01/01/2020 455,000 5.800%110,055 565,055 675,110 07/01/2020 96,860 96,860 01/01/2021 480,000 5.800%96,860 576,860 673,720 07/01/2021 82,940 82,940 ; 01/01/2022 510,000 5.800%82,940 592,940 675,880 07/01/2022 -68,150 68,150 01/01/2023 ,540,000 5.800%-68,150 608,150 676,300 07/01/2023 : .52,490 52,490 01/01/2024 570,000 5.800%52,490 622,490 674,980 07/01/2024 ;35,960 35,960 01/01/2025 605,000 5.800%35,960 640,960 676,920 07/01/2025 18,415 18,415 01/01/2026 635,000 5.800%18,415 653,415 671,830 7,875,000 5,632,380 13,507,380 13,507,380 NET DEBT SERVICE Alaska Energy Authority Rail Belt Utility Group Intertie Project Taxable Revenue Bonds,Series 2006 $7 Million in Proceeds,20-Year Amortization Period Total Debt Service Net Ending Debt Service Reserve Fund Debt Service 01/01/2007 676,750 31,550.54 645,199.46 01/01/2008 673,990 31,550.54 642,439.46 01/01/2009 675,650 31,550.54 644,099.46 01/01/2010 676,440 31,550.54 ©644,889.46 01/01/2011 676,360 31,550.54 644,809.46 01/01/2012 675,410 31,550.54 643,859.46 01/01/2013 673,590 31,550.54 642,039.46 01/01/2014 675,900 31,550.54 644,349.46 01/01/2015 677,050 31,550.54 645,499.46 01/01/2016 677,040 31,550.54 645,489.46 01/01/2017 675,870 31,550.54 644,319.46 01/01/2018.673,540 31,550.54 641,989.46 01/01/2019 675,050 31,550.54.643,499.46 01/01/2020 -675,110 31,550.54 643,559.46 01/01/2021 673,720 31,550.54 642,169.46 01/01/2022 675,880 31,550.54 644,329.46 01/01/2023 676,300 31,550.54 -644,749.46 01/01/2024 674,980 -31,550.54 643,429.46 01/01/2025 676,920 31,550.54 645,369.46 01/01/2026 671,830 708,600.54 -36,770.54 13,507,380 1,308,060.80 12,199,319.20 Maske \nteke Nukrng SIGN-IN Ovuly aa Bood CONTINUATION SHEET sy) NAME |ORGANIZATION Tin Ae l4e MEP- Dow Co Hen Aé EA Pde Bottine MEA Kradles Ensen J CEYW tTDeve Hall Met Jim foséy Mate STEVE)MbMAGEJSCo GVEA SrtLth LievaaclsAiUSAt,Gan MsCatSLIKOAVE -AK IMnterndic Mey 6/30 /aces 7 Dende Puglited =- hee Liha de"neOL,-necehed A kjp4 pm Pde 7Ltene's emditina-+meted typi Loh-RabbA coil meleed why wtirin pomidr fe Seg Ent tetr-Liiane Apis -nr Sew10CappitehedApe(Aa :ae -aut cng Yo ptTheeotbdpdatspedracked fag lillian fayokOPE |Bib uth be,ral!fe 4 wok Brat kin Lan ne 5 cul ©Pag mit coe fi pip 7D.Lusch,bib Loe 00 pe"4 be diye-__AS,WA tol serChey bee-art_aul lope I apts pePindCLLtohrnilesAtepeefrgpordtyekoerchar--Comp,ryt oo.a7MAD-SF yr -pins Linger |tl we foryp 8002 0 |t ehilly hall|ft UT dint Ln tevls lr Sui Stee lreqgneo Rt.-Ron M.\le r Ro -Ron Son Mb-ws BerrySP-Dim Fo mas BR -Baica Brockap>© RM reed vako recardSB- Beckel rep:Ca ALON a Can'a-d ; Ate (nde hat -dechrot-cark Fe -ne)edk nowov-ads alreadyRs5-mac Carr be enonkcof738-. 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Members present:Henri Dale,(GVEA),Bernie Smith (AEA),Brian Bjorkquist (Department of Law), John Cooley (Chugach Electric,IOC Vice-Chairman),Paul Williams (Dryden &LaRue),Tom Kelly (Matanuska Electric),Doug Hall (ML&P),Bob Drake (MEA),Bob Day (ML&P),Frank Bettine (MEA),Brian Hickey (Chugach Electric),Jim Walker (MEA) 2.PUBLIC COMMENTS [INDISTINCT DISCUSSIONS:STARTED AT 0450 ON THE TAPE COUNTER] Chairman Dale:1 sent out two sets of meeting minutes;the April 21°from GV and on June 9"we had interim meeting at AIDEA.I'd like everybody to review or comment on those minutes.|dohavesomecommentsontheJune9"minutes.In my email |mentioned the title of the documents as being approved by the Committee but it's still considered draft.Various people's names weremisspelled.I'm in there twice;once spelled correctly and the 2™time incorrectly.Charley beeeee [indistinct]...From Chugach is John Cooley.From Homer Mr.Bob Drake is actually Mr.Bob Drake from MEA. We were at AIDEA and |think he held over.There were two things going on and |think he was there in the office;he's a member of the IOC. Chairman Dale:There was a member there before him that was there._[indistinct]..... Chairman Dale:Last time,not this set of minutes but the time before,and |know you weren't here, there was a large argument that the members of the IOC be separated from visitors and the representatives from MEA and AEG&T. It was asked that they be separated in the January minutes. [indistinct conversations] Chairman Dale:So we were joined by Brian Hickey (Chugach Electric). Also on the June 9"minutes,there is a reference in the 2"page about 1%way down to the 138 KBline;that should be read "KV line”.On the 3%page about %way down there is a quote from me; apparently |was incoherent at the time.I'm not sure what |was getting at and the author wasn't either.|don't exactly remember the context of it.We were obviously talking about not being able to do controls at certain times due to the rivers being frozen;that sort of thing.We were talking 10C Meeting Minutes July 21,2005 Page 2 about access and what was safe.|don't exactly remember what |said so |don't have a problemstrikingit.It may very well be what |said. There's one more on the last page reference to the IOCMSC.There was some discussion at the time having to do with Martin....[indistincf]..... Any other comments? Bob Drake:At some point in the June 9"meeting you'd made a comment that [indistinct] instructed to stop work on his project.There was no mention in the April minutes. Chairman Dale:|don't remember a vote or what we said.My recollection was that the tower project that they were doing would use the remaining monies of that project to do the other things we'd asked them to do based on the spreadsheet.|don't remember a vote as such. Any other comments on the minutes? John Cooley:On the 2™page under ......[indistinct]...,the TOC authorizes a base seeeee [indistinct]...and |think the word should be "requires”a base project and in the nextparagraph,the 2™sentence goes,"that's basically "The first part is the electrical component whichis4%ft per 135 KV”and delete the rest of that whatever.....and then the 3”to the last paragraph it says (lets change the last sentence to read),"from the design standpoint,it is usually less than 3 feet'.The last paragraph,"the final calculations”...........change the word "calculations”to minimum clearance,snow depth,and then continue with data and obstruction height. That's it. John Cooley:After the work order what was the decision on the wording error;the decision "from the design standpoint'? Bob Drake:"It is usually less than 3 feet”. Bernie Smith:|think "1 to 3 feet”would be more appropriate. Chairman Dale:On adoption for our meeting,we will adopt the June 9"minutes withmodifications.What about the April 21*minutes? Chairman Dale:April is ok as submitted.Any other comments or is everybody reading? Chairman Dale:Modification of the agenda.You have the agenda before you.Are there any changes or additions anyone would like to add to it?There are two things in there that are not commonly in our agenda is the discussion of some outages that we've had recently. Bob Drake:The only change I request we make to the agenda is under 6L.That's an opinion and not a fact so it should be stated in such a way as to not look like a fact. Chairman Dale:Any additional changes.Well,we will approve it then.Any reports and correspondence?Dispatch Committee has met recently. Doug Hall:Dispatch Sub-committee met/conducted a teleconference Tuesday at 10 o'clock.The primary was discussing the outages that have been occurring and maintenance.Primarily was the outage that occurred last Thursday.It had a significant impact on the electrical system.[indistincf] One of the biggest things the Dispatch Sub-committee came up with was communications between control centers.The Dispatch Committee is meeting next Tuesday prior to {indistincf] 1OC Meeting Minutes July 21,2005 Page 3 Chairman Dale:Reliability/Protections Sub-committee.As far as |know right now they haven't met.Last regular meeting we assigned Doug Reuter to be the chairman.As far as |know he hasn't brought you guys together.Care to give us a status report on where you are? UNIDENTIFIED SPEAKER:|haven't heard anything from Doug. Chairman Dale:You guys haven't met this quarter? Doug Hall:No. Chairman Dale:Ok.[indistinct........]One of the big issues you have being at these meetings; there's a lot of things we need you guys to look at and if you can't do it yourselves,we need you guys to propose how else it is to be dealt with.|know we all have a lot of construction going on and I've written letters to Brian and others.They all say that you guys are really busy but there are things we need you guys to look at also.I'll talk to Doug about getting you guys together. [indistinct] We're either gonna meet tomorrow.|think they were gonna meet on Friday.Anybody here that normally sits on that.|think Barton usually did;isn't he involved in that?Oh well,|know how it feels. We were talking about "Machine Rating”Sub-committee.Barton used to sit on that;|assume that you do also,or will.[indistinct].Ok,so we'll be hearing from them when they do meet. [indistinct]and Communication Sub-committee.I've been seeing some information.....They were to have a recommendation for communications control center but at the time my understanding is that at the last moment there was some discussion on termination and |know that Paul Johnson is talking with my guy on that. Bernie Smith:What termination are you talking about? Chairman Dale:Instead of using the old control microwave because ......[indistinct]...,we're talking about using fiber and it's called terminating at different locations.[indistinct.......] There was also some discussion that there be dual caps.That doesn't seem to be the case. Apparently we don't have dual caps anyway but one of the selling points they were working on was having.........+and that may not be the case either,they are still looking at that. Heat Maintenance Sub-committee?We have the minutes from that.We discussed that. veneee [indistinct]...Sub-committee had met,or some of the people did.There is a -Bernie did send out the minutes on that also.We have a topic before session to discuss the budget itself.|guess we'll defer......... The Sub-committee usually meets once a year prior to budget time. Chairman Dale:Yes,everybody else wasn't sure whether we were meeting or not meeting and I'd called Baron the day before as |was on vacation |suddenly see that we were meeting tomorrow in Anchorage with a question mark behind it."I”knew we were meeting. Doug Hall:They actually adopted a budget...... 10C Meeting Minutes July 21,2005 Page 4 Chairman Dale:There was no vote to adopt which is why we're going to be discussing that one in session.My comment on the budget minutes is ......[indistinct]....attributed to working for MEA and there was something about this 3 FDS's having something to do with Bradley and it did not. Chairman Dale:Ok,Intertie Status Reports;|have seen some go through,any that we talked about at all in the Budget Sub-committee,any comments on the related status report? John Cooley:You have a question that said the outage reporting ......[indistinct]...MEA getting those off the web and being able to update them.[indistinct] You need to fill out the data for years on any of those outages that affected you. Chairman Dale:Ok,communications received,major communications that we received......letters. One of the things that ......[indistinct]...ordered us to do was to have everybody send each other letters authorizing who was to follow up on that.1 sent mine out.|don't know that MEA has responded.|think Tom was at our current meeting;he wasn't in position to say one way or another as to who the person is that the authorized representative.The Dispatch Sub-committee, when we met back in April,a day or two later,you guys had sent out your letters. Ok,then we got various proposals on statements of work mostly from Dryden &LaRue and Art having to do with snowload. Ok,we have some visitors.Any comments related to items on the agenda?After recess,|would recommend that we defer until lunchtime. Chairman Dale:Ok,we're in a work session.Dispatch Sub-committee,is there anything this body needs to discuss related to the activities that they are doing?Remember that the last time they met they discussed one of the reasons,outages....and we'll talk about that one later in work session;so is there anything else we need to discuss about the activities of the Dispatch Sub- committee? John Cooley:One of the things we need to discuss is _re-emphasize ...[indistinct]....communication,particularly as it involves switching...[indistinct]........ ...Online without telling us its online....36 hours ...[indistinct].......dispatchers were working through the numbers figuring out why the numbers were out of range and we looked at manual points and yeah,there it is.It started yesterday about 1400 hours and we called MEA and asked them.........[indistinct]... We called yesterday about 1400 and there's the same thing.You guys choose to leave the switch open in the position,that's your prerogative,it's your switch,but we need to know when you're doing that because it does change the flows system,and depending on which way the ....it's significant and we need to know when you guys are doing that......[indistinct}..... In the control centers,we're trying to get everybody to talking to everybody else as far...[indistinct]. ....way to improve communications between control centers.What we need more than anything else is for supervisors to reaffirm with their people that it's imperative that you keep the other utilities advised of your actions and not just to pick on you because all of our people in kind do the same thing.They support this mentality where they think they are cut off from the world when they are not,they are connected to the world.What you do here impacts everything else.Pick up the phone and talk to Golden Valley.It's just something as supervisors we need to make sure that all the people working in the control center understand. Chairman Dale:The other part is that they need to be specific whether than "can you help me”,or "have you got a little bit for me?” tOC Meeting Minutes July 21,2005 Page 5 Doug Hall:A little bit to MEA is a hell of a lot different than a little bit to you.And that is true;we have actually pulled communications off the tapes where one dispatcher says something,and knows exactly what he means but he says it in such a generic way like "can you help me”.Well, what are you looking for,reactive,real;exactly what kind of trouble are you getting?What the hell are you asking for and ask the questions specifically;say what you mean and mean what you say is what |tell my guys.Pick up the phone and say,"did you loose a unit,did you loose a line?” Something,be strong and specific.[indistinct] [indistinct discussions] Doug Hall:There is an excellent article in the Power News issue of May.It talks about what the Midwest.........[indistinct]....basically holding exercises now because .........[indistinct]....these blackouts.If we can't help each other,we're in trouble.This is what they are doing,they are setting up exercises to try to enhance communications between the contro!centers and actually putting the guys through drills because that's the key and our system is getting more complicated and more difficult to work than it was 20 years ago.We gotta get our people better adept to handling it and we're gonna have to step up to the plate and figure how best to get some hands on communication training that will allow .........findistinct].......out there. Chairman Dale:|agree that the control centers do need to communicate with each other more.At one time just before the end,just before MEA got dumped off there was one of my guys |think went through you as ("Southern ")operator to one of your guys as Southern operator to tell MEA they needed to reduce load and it became apparent that they were off.Your guys weren't too familiar with being a middle man in that position.Do you think that's where you should be,if I'm in an "islanded”position and |need to talk to MEA,should !be going through the southern operator; which is what we normally do? Chairman Dale:Yeah,that would normally be correct.|think the difference was even at that point in time;I'm not sure if.......[indistinct].....middle man You were islanded with MEA.|think that you were still sitting there thinking,"well you guys were out there......[indistinct]... Doug Hall:We didn't fully understand because of the 6 pages or 8 pages of alarms coming in. That fact that you guys were.......[indistinct]|don't think he understood;there was a breakdown in communications.Your frequency was not saved correctly. Chairman Dale:We had...[indistinct]......frequency but lousy voltage;we couldn't save a lot of voltage. Doug Hall:So |don't think he understand,and it was a breakdown in communication. Chairman Dale:One thing for you guys,|know you don't control the telephone people but during this outage and not uncommonly in other outages for whatever reason your phone book out here has Golden Valley listed and it's not uncommon for us to get MEA customers calling us with outages.|don't know why that is because MEA serves Cantwell..........and we do get a lot of them and we just tell them to keep on trying;that we don't serve that area.It's gone on for years and every time there's a big outage we get a few calls.It's just something you may want to talk to the telephone people about and clarify ............. There is some confusion in the telephone.Usually when you're having outages,we don't,so it's not a big thing for us;it's not like my guys are busy but there's some confusion for your membership. IOC Meeting Minutes July 21,2005 Page 6 Bob Day:Especially if they don't know who they are a member with [laughter,chatter] Chairman Dale:Reliability/Protection Sub-committee Chairman Dale:Guess we'll just say again what we've said before.I'll be getting with your chairman on that;all you guys,not just you but all the committee leaders,committee members need to get together.And now MEA have its representative for that?Is that gonna be Frank or do you have somebody else that's gonna be on the Committee. Bob Drake:We haven't talked about that yet but |think Frank will probably be involved. Chairman Dale:So is there anything that the |OC needs to discuss versus the work of the Machine Ratings people?I'm not aware of anything. [indistinct].......they are busy doing things,they have not produced anything yet but |know they have quotes from all the vendors and have me doing it.1 don't have anything that needs to be discussed on that. Bob Drake:You were going to be replacing ("Douglas”).Have you? Chairman Dale:That's correct.We haven't yet,however,the engineer that's doing that work has been checking in to substations that we have those other meters at.I think he's back on the project.|think the last time |talked to you,it was going to be like fall or somewhere in that time period and we will certainly continue to have access to it also.We all are supposed to have access but nobody has bothered to call..... We also putting in a recording meter at Douglas that takes 15 minute data for the entire month. We have older recording meter that's getting harder to keep software updated on so we're replacing all our old stuff and we're replacing that one also since they are bringing us up to speed on that;we're supposed to be up to speed;gotta get that stuff installed.We have a really old PC sitting in the corner of our dispatch center.|don't even remember if it has Windows on it.It's software we used with those recording meters;|can't throw away that PC.The operating system it uses is the vintage that the DG's use,there's no upgrade for.Every now and then that PC starts making noise and we worry about it. Chairman Dale:Ok,the maintenance Sub-committee;is there anything this body needs to discussabouttheiractivities? Chairman Dale:There was a question we had the other day;apparently you guys had sent a copy of the clearing contract out to all the GM's or something like that.Steve sent it out.Why,after 6 months did that suddenly surface?|thought he'd received it. Doug Hall:Steve asked me to send this;one to you,Posey,Waggoner,Diane,[indistinct] TAPE 1 ENDS Tape 2 (side 1) John Cooley:.....outside of a single year. BERNIE SMITH:|don't understand why one of them (indiscernible)one of them that goes. Chairman Dale:The SVC one is critical according to the procedures... 10C Meeting Minutes July 21,2005 Page 7 Bernie Smith:It's obvious that you need at least a spare for that particular one?Whether the maintenance plan works or not |mean how long is it going to take you to get one (indiscernible). Chairman Dale:We would not be able to get one if it did fail.The manufacturing time to have something reverse engineered would be extensive.However,one of the topics that the Reliability Committee is supposed to look at is this need for the SVC is worded back in 1984 the way our systems were.Since then I've built the Northern Intertie,plus upgrading on 37+builder bar best which is just like SVC that's at the end of that 138 line. Chairman Dale:The intertie works just fine without the Healy SVC.The concern is that if it was off and that you had a problem (many people talking at once,indiscernible)-by default that there could be damage to the Healy (indiscernible).It may be that Golden Valley releases you guys from the liability on the Healy unit. Chairman Dale:That kind of situation.|realize you guys don't understand all of what's behind this but there are a lot of options as it goes out.But right now we have a procedure that we follow that is written up in the mid-1980s that says when the Healy SVC is off you take the intertie out of service. Bernie Smith:(indiscernible)rob parts from other SVCs? Chairman Dale:Unfortunately you can't,with some parts you but there are parts that are unique to each one.Unfortunately when they build them the guy came out there -the back of the board is all wire wrapped pins and they put components on as needed and didn't necessary document what they did so the motherboards are unique for each one and it would be debatable whether you would be able to look at that mass of wires and in a timely manner put the proper components on the droper(sic)pins. BERNIE SMITH:So,that just means that you just go out and the Northern Intertie goes,we have to shut it down? UNIDENTIFIED SPEAKER:Controlled shutdown. Bernie Smith:Controlled shutdown.That means that you would be the one to (indiscernible) GVEA.You depend on the (indiscernible).But you do backup correct?You do have enough power to generate MEA? Chairman Dale:Yes. Bernie Smith:It just costs you more. Chairman Dale:That's correct. John Cooley:We depend on Golden Valley for spinning reserves. Chairman Dale:....barges,they would also have to carry larger staying reserves -it costs everybody,it is not just me -but |suspect I'm probably affected as much or bigger than anybody else.There are options,one of which is for our reliability... IOC Meeting Minutes July 21,2005 Page 8 Chairman Dale:...To look at are we in the same situation that we were back in 1984?Back in 1984,my night time load in the summer would drop down below 30megawatts.100 megawatts was something you didn't even think about -we were 70 or 80 megawatts for a peak load. Much different system now then we were then.The big thing is that the SVC is a huge -the best,which is a huge SVC compared to what we have installed.Further away but is that sufficient.We don't know but we'd like to know. Bernie Smith:As long as it keeps operating for x number of minutes. Chairman Dale:No,the best -the far side of the (indiscernible)is contiguous.As a matter of fact |can disconnect all of the batteries and it runs just fine. John Cooley:|have a question that's more for the Reliability Committee -would that be better to make a motion and give that to the System Analysis Committee.One thing that we probably ought to face up to is that there is nobody on the Relo Committee who runs a PSSE anymore, that all went to the SAC of ASCC. (Indiscernible -many people talking at once) Chairman Dale:|don't see -|can't really delegate that to the ASCC as such.|can't delegate things... (indiscernible -many people laughing/talking at once) Chairman Dale:At one time we had discussed that probably SAC is -the thing is -well,|don't know about the goods on both sides -essentially the same group of people that... Bob Drake:Yeah,but my question was how would we relay the Liability Sub-committee to delegate to the SAC... Chairman Dale:It's something that we would like to see done because it is an important issue. And... Chairman Dale:This is something that being delegated to the utilities,the utilities have absorbed the cost of their own people same as the dispatch centers are absorbing... John Cooley:|think it's a question is that you could just hire Cody to go do it. Chairman Dale:And that's one of the things that we asked them to meet,is how are you going to conduct business when you guys are too busy to do business -are you going to hire consultants,are you going to do that -and they cost money. Bob Drake:At the very least if we're going to do that,say that we hire (indiscernible)then do it. Chairman Dale:Cody would be using the proper model,but somebody needs to oversee what he's doing,interface with him,tell him what to do and make sure the results are reasonable. But,I'm pretty sure that through the stuff that Cody is using model. Bernie Smith:Does that have the best -the intertie model in it? Doug Hall:(indiscernible)last |heard. IOC Meeting Minutes July 21,2005 Page 9 Chairman Dale:|don't know.I've asked on several occasions if we got the parameters and | believe we do.But |don't know that he has. Chairman Dale:Okay.Shall we....So I'm going to put up for a vote item 7 to not adopt the SVC.-Okay,Item G on the work session:Upgrade extension of intertie to Elin.We kind of talked about that.It's on our agenda as ongoing.Last |heard was it was in ML&P's board and it's just an update is that... Chairman Dale:I've seen a draft this morning (indiscernible)and |would like comments back and |don't know where -further negotiations with you guys or exactly what or...It's pretty rough -maybe you can get it cleaned up and (indiscernible)the comments,even just that | made this morning were typo (indiscernible) John Cooley:So do you think it is close? Doug Hall:|don't see any reason why not. (Laughter,various people talking at once -indiscernible) Bob Day:This is being half a decade,and |hate to make it sound that bad but just getting a project manager to start the process and that's just unheard of. Chairman Dale:Okay. Chairman Dale:Anybody have anything to add onto that -we'll move on. Bob Day:It's just that it's the draft of the (indiscernible)they would be project managers.. Bernie Smith:(inaudible)if that happens,are ya all ready to start the project? Bob Day:You guys got to approve it -it is a stage thing. Bob Day:|did talk to Phil the other day on other things and he was saying that he has a... Chairman Dale:....must be looking for work or something saying they had people available and he really wanted to get started on engineering that project so they're -either business is slow or... Bob Day:Yeah. Chairman Dale :So anyways,they are interested in getting started so they are ready to do engineering as soon as we get past this project management problem.Again,Item H is probably a placeholder,|don't know if |should keep leaving it in there,|was expecting the Corps to respond in a timely manner...We'll just keep it in there.As we all know,MEA,when the RCA gave the order,MEA went to the courts with it and we're waiting to hear back from them.That's your understanding also is that some day they'll give us a date.So basically that's a placeholder in the schedule to see how that goes.In the meantime we're getting our stuff in order with the RCA.The items they asked us to do. Doug Hall:(indiscernible)...do you guys want to receive all schedules? 10C Meeting Minutes July 21,2005 Page 10 John Cooley:The schedule (indiscernible)and that schedule can change almost two to three times an hour but sometimes 10 times a day,sometimes 12 times a day.|believe the order... Chairman Dale :The order says that MEA's board delegate will be copied on everything.Now, ML&P is the Southern operator,they get all the paperwork.And |guess the question is ML&P getting all of the paperwork which we have access to look at?Is that what you want or do you want the sheets coming over your fax machine? Bernie Smith:That's a lot of paperwork. Doug Hall:Yeah,it's significant.No problem for my guys to (indiscernible)plus your time,the fax will be huge. Chairman Dale:Each one,we get a stack about that high,you know,of all the schedules. Bob Day:(indiscernible)if that's what you want.You just need to let us know.If you want it. Chairman Dale:Next issue is Item |,Interconnect Agreement.You guys are waiting on me to provide the draft -|haven't got that ready yet.The intent was that the way the Interconnect Agreement that all of the utilities'have agreed to so far really we're talking about small generation.I'm not talking about large generation,so...|will be providing you guys an update on that |don't have one at this time. John Cooley:!s this -|just gotta ask this question,is this -is this the one that Basin (sp)had put together that all of the utilities signed off on,|think it was a collaborative effort,|may have a copy of that here -it talks about... Chairman Dale:Is that the new one or the old one that we're talking about here? Doug Hall:The old one. John Cooley:Chugach did one for small generations for our own system but I think people are more interested in,you know,if somebody put a 10 or 20 megawatt... Doug Hall:The way this thing stays is less than 200 kw,above 200 kw,above a megawatt, well,there are some things |would do with somebody that was 1 megawatt than somebody that was 100 megawatts.There is a big difference between those levels. UNIDENTIFIED SPEAKER:You ought to look at what we did -you shouldn't be starting from ground... (many speakers at once -indiscernible) Chairman Dale:You got stuck with this and my,what I'm doing on the draft is adding a new section and |don't recall what was said. Chairman Dale:It's inappropriate for working with a large generator.For example |think the way this is wrote up,if this were a small generator you're responsible for coming up with 100% of your load,is that what you would expect from a larger generator or would we offer to share it with spinning reserves kind of concept. Doug Hall:Um huh. IOC Meeting Minutes July 21,2005 Page 11 Chairman Dale:Okay.So,we're waiting on that. Chairman Dale:I'll ask Brian.CEA's more modern copy. Doug Hall:|got it. Chairman Dale:Okay. Chairman Dale:Intertie insurance issues.That was the topic that Art had unless he has... Bernie Smith:(indiscernible)that |understand was do we want to spend $25,000 for the Patriot Act,in other words is there...terrorism insurance? Bernie Smith:...terrorism insurance.And |don't see any reason to spend it -it's not going to shut down if somebody blows up the intertie it's just going to make it more costly,so... Chairman Dale:Like good neighbors to the South? (Indiscernible -many people talking at once) Chairman Dale:What |was thinking was also,we did a comprehensive review and we're still reviewing it,but mostly done on Bradley Lake on various coverages.On what is appropriate in this day and age.|think Mike Cunningham of Chugach spearheaded that -I'm envisioning something similar of that order -the amounts of insurance that we're all supposed to carry and that sort of things dates back to 1984 -are they appropriate figures in this day and age.It is certainly time for a review.There was a quantity put in the budget for doing that sort of thing,| believe it was $50,000.I'll leave that in there as a placeholder but since we have it budgeted we'll have the study done and then we'll have something to talk about in the future. Item K,Intertie snowloading problems and best practices.On the snow load problems,we had an interim meeting a month or so ago -various scenarios of what we could expect to see under the line with the snow conditions -criteria for designing lines -we were unable too -Chugach at that time had made a suggestion for a combination of them,the rest of us needed time to debate it.I'd like us all to decide what we want to do on that and we will be doing a vote on that. There was emails going back and forth and |think everybody was copied on it.Chugach had made a proposition -John had proposed that we use 23 feet as a minimum recommended ground clearance consisting of 4 %feet of electrical,5 %feet of snow,1 foot safety factor and a 12 foot obstruction height,which could be characterized as a skier with a 4 foot pole.He also proposed that the operator would calculate for actual snow depth.If there was less than 5 % feet on the ground could be allowed depending on actual footage.He says that Golden Valley in the email it says that they were good with that concept.ML&P in an email said they were good with that concept.MEA or AEG&T needed more time to study it and they did get back and emailed us that they did not believe that it was rated off,they did not believe it to be prudentbusinesspracticetorelyonloadcellsononlyonephaseonevery10"tower to tell what is happening on any conductor in any span.Therefore,AEG&T votes no to approving any minimum ground clearance as acceptable before the intertie is deenergized.We weren't actually asking for a vote but they stated what their position was. Does anybody care to discuss any changes to their opinion at this time.GVEA still feels that Chugach's proposal is a good one. 1OC Meeting Minutes July 21,2005 Page 12 Bernie Smith:Were you waiting for ML&P? Chairman Dale:Yes,|did get a reply from ML&P. Bernie Smith:You didn't read it... Chairman Dale:No,|just verbally said --|didn't read it.Yes,we did get one from Doug and | got some comments from the State also. Doug Hall:Do you think that statement says it all or is there more you want to expand on or... Chairman Dale:no. Doug Hall:...detract from it,or...Okay.Has anybody changed their opinion from what they had in the emails? Chairman Dale:Nope. Chairman Dale:We will put it up for a vote. Bob Drake:There's one thing |might add.|remember looking at the snow report supplied by (indiscernible)Construction.If |remember right,on one particular day,the snow station at Susitna High School measured at 45 inches of new snow and the one in Talkeetna was just a couple of inches.Tremendous difference between snow stations that are 20 miles apart.That's why we view that it is just not appropriate to base some arbitrary number that is not completely arbitrary.On what conditions may be throughout the entire length of that section of the line - conditions can be vastly different from a few miles away -the way those snow monitoring stations are. Chairman Dale:My understanding was that there would be some kind of a spread sheet so that you would be looking at each station -is that... Paul Williams:...to look at what the snow pack was doing out there... Paul Williams:...at every station... Paul Williams:...basically means every two miles. Bob Drake:The snow pattern this year was significantly different then what we have seen in the past.The snow pattern this year provided unbelievable amount of snow to the entire area that we are talking about here west of the Parks Highway.Trapper Creek,8 miles in off the highway at Trapper Creek,they had 12 foot of snow.It was nothing short of -on the east side of the Parks Highway there was never more than 2 or 3 feet of snow.The conversations we have had with the National Weather Service have indicated that the patterns subs -they were pushing the storms up the mountain and they were holding by the mountain and just dumping.They used the Parks Highway,they said that west of the Parks Highway is getting dumped on and there is very little snow falling to the East.We saw the pattern the entire winter.It was an unusual year and there was conceivably heavy snows and it always seemed to stay west of the Parks Highway. Pau!Williams:The other thing is with patrol there -if we do want to start looking at the snow pack itself they're basically wanting the entire look for the line,there is nothing keeping us IOC Meeting Minutes July 21,2005 Page 13 from adding a little bit more flexibility.If we want to have a peak at every mile or every half mile,that is certainly a possibility. Chairman Dale:We are still,as |understand,still planning on every 2 inches (indiscernible) decided to patrol out or by command by the ML&P dispatch center. Paul Williams:Somebody was... Brian Bjorkquist:MEA do you have any suggestions on how to improve the processes? Bob Drake:Well,there's a solution out here too.And that's (indiscernible)Part of our concern is that at the last meeting it was mentioned that they had no processes set.The snow needs to be taken care of.There needs to be a solution to the problem.Monitoring is not a solution to the problem. Bernie Smith:The estimates are from $18-$30 million... Chairman Dale:$32 million.The cost is only going to go up. Bernie Smith:So,question is who's... Doug Hall:ML&P's position is (indiscernible)for $32 million dollars we can build one hell of a fence around that right of way and keep people out.You can fence that right-of-way and keep people off a lot cheaper than you can do with inset towers with $32 million dollars.It's just a ridiculous solution with those kind of costs. Jim Walker:You wouldn't think it was a ridiculous solution if it was in your service center and if someone got killed... Doug Hall:Then |guess we need to look at... Doug Hall:...then your liable... Doug Hall:...(indiscernible)this is what they do in America. Jim Walker:(inaudible)The problem is that we are picking up all of the liability issues because if there is a lawsuit if someone gets electrocuted,their estate comes looking for MEA because it is an MEA service center. UNIDENTIFIED SPEAKER:(inaudible) Jim Walker:The last time |looked it doesn't require you to be the owner to be on the lawsuit. Doug Hall:And that's the point.And the reality of it is,that's -the reality is every utility represented in addition with the State of Alaska is going to be named in the lawsuit.Golden Valley for buying,ML&P for selling,Chugach for selling,MEA for general purposes,and the State for owning it. Jim Walker:Probably AEA as owner and the utility responsible for maintaining and operating that track of the line. Doug Hall:Well,you maintain it,you don't operate it. 10C Meeting Minutes July 21,2005 Page 14 Chairman Dale:Somebody was going to talk to you about the ability of removing snow load while it was energized.Did that every happen? Tom Kelly:Yeah.Actually,basically there are only two ways to go about this -either through a helicopter or you get out there on snow machines or an all track vehicle or something like thatand!figure every time a storm comes through for seven miles of line (I think that's about 5 to 10 miles)a line is usually impacted on the bigger snow storms.So,that's about $20,000 to clear out a line and if we wanted to do it where we clear out the pole line every time it builds up an inch or whatever else then that's somewhere around $50,000. Bernie Smith:How do you clear it off? Tom Kelly:(inaudible)....hot stick Doug Hall:...The helicopter would clear the line... (indiscernible -many people talking) Paul Williams:Yes,it really has to be done on the ground either with a stick or Tom mentioned a bow and arrow. Paul Williams:It really depends on if the loads out and it sticks on there and basically the snow starts to kind of freeze to the line and you get ice build up and it is extremely difficult to remove only a foot or two so that means walking the entire length of line he is clearing.If it's fresh snow that it will unload the stand. Tom Kelly:|take it,it was mentioned earlier that even if we did inset towers that would be several years down the line., Tape 2 (side 2) Chairman Dale:Okay,back to the budget.We were discussing the SVC.Let's continue on down naming off the big items and it looks like the SVC is going to be a contentious issue.The next good one |see down there is the right-of-way clearing which sounds like having the money for clearing it in this upcoming budget is where it is going to need to be so |don't see a problem there.It looks like we're not going to be spending anything last year.And $1,000.... Doug Hall:Last years'budget did not get spent? Chairman Dale:The $100,000.So that big increase probably is -and as |remember we did a mid-year budget authorization when the bids came in,so that's probably where that number came in.The insurance risk that was something Art did and we wanted to start with and to sort of do a review of if the amount of insurance we have is appropriate in this day and age.|think that was an estimate included in there.Well,no,|was down at $50,000,|missed the tower.Of the three towers that are having distress,we will be doing one of them and it doesn't matter which one that we do,but my understanding is the ones in Talkeetna are close enough together that we would like to do both of them when we do one for mobilization reasons. Doug Hall:The measurement... Doug Hall:That's right,it was in the winter and there was snow in the way or something... 10C Meeting Minutes July 21,2005 Page 15 Paul Williams:(indiscernible)to determine... Chairman Dale:One of them looked like it had stabilized the other one.We weren't sure if we were getting different readings -we weren't sure because we were measuring in spring and one in summer and you know... Doug Hall:Have they ever gone out to confirm that measurement? Chairman Dale:There is a foundation -we thought there was a tower jacking -the grounds people went out there and cored holes and found that it was all ice lenses in the area and now i's --probably won't be anywhere -hopefully it will be under that,it's not looking like the foundation problem it's the ground is subsiding around it.It is not the pole jacking up it's the world lowering.It's not as bad or severe as it could be.|just heard a week.There's -the consultant,when you get this written,this is just discussion verbally,they haven't written the report yet.But we'll probably drill under it,fill up the gap where the concrete has come out around.We burrow under it,do some drainage repair and that will probably continue to be subsided as the ice lens melt out.Apparently they struck several,cored several holes and they were all substantial amounts of ice.It was just shear luck that the one spot that they drilled for grounding was in rock and everything around it is ice or substantial amount of ice.We have that in there. Doing one of them this year,the other one is stabilized,and the other one we still aren't too sure of.Do the tree trimming and then that brings us back to the SVC. The budget,we've got a couple of expensive projects going on;the clearing and the foundation. That's over %million worth of projects there.I'm not sure that is a good year to be doing the SVC -our budget is over $1 million more than what it was last year and that's a 30%increase... Chairman Dale:Might even be a 50%increase depending on how you do the division. Chairman Dale:|want to hear everybody else's opinion but my feeling on the matter is that | would like to strike the one SVC out of there for this year. John Cooley:|'ll go first |guess.Since we received three different budgets in the past 6 daysorso.Honestly that causes us some concern.Since obviously yours starts on January 1*it is difficult to take any drastic increase in expenses into account this late therefore,we are not authorizing you to proceed with any of these three proposals.The other thing is funding -the Intertie Agreement,the budget is supposed to be presented to participants 13 months prior to the adoption before the fiscal year starts,and obviously we are a long way from that. Chairman Dale:We haven't... Chairman Dale:We haven't done that since AEA disbanded... Chairman Dale:Well,hopefully this isn't an indication that the legislature be funding... Chairman Dale:13 months. Chairman Dale:...to get it through the legislature and other things of that nature. 1OC Meeting Minutes July 21,2005 Page 16 John Cooley:So in the absence of having the (indiscernible)we won't agree to any budget expect the extension of the previous budget approved for the fiscal year (indiscernible)With the possible exception of being increased costs for the railway clearing,which is something we approved earlier this year. Bernie Smith:We would probably want to include the increased expense for your wheeling right? John Cooley:Well,if it goes into the budget,it goes into the budget. Chairman Dale:Actually,there were several things that did go down.Let's look at them.|think it was the taking out the SVC at 1.1 that bring us down to 2.2 compared to 2.0 where we are then 10%of what the other budget was. Doug Hall:Would you still need the 55 from last year's SVC repair? John Cooley:No,that was a study wasn't it? Chairman Dale:Last year there was an SVC repair under FERC 570.Was that the transformers? John Cooley:It was under spare parts. Doug Hall:Yeah,it was transformers. Doug Hall:That's only $12,000 in there,in reality.1 mean... John Cooley:There's supposed to... Doug Hall:There was a transformer for you guys.And we used that to provide... John Cooley:They didn't do that -they got -Golden Valley was going to order a new one. Doug Hall:Yeah,we ordered two new ones actually,one for us and one for Golden Valley. John Cooley:Well,|don't think they were... Doug Hall:So you think it was the transformer failure and not some work for the SVC... (Indiscernible -many people talking) John Cooley:...replacing the transformers,the two or three -|called to try to have a work order set up at the job site (indiscernible-coughing)transformer in there so we could get away from the roundhouse. Doug Hall:I'll ask him,|remember there was a 13 inch... John Cooley:|remember that now,I'll have to ask him. Doug Hall:|think we're talking about two different transformers here.We were ordering some potential transformers that we had bought -we had two failures up there,one was a 1O0C Meeting Minutes July 21,2005 Page 17 (indiscernible)the other was a station service transformer,we actually had a fire in the control room. Doug Hall:Right,and that... Brian Hickey:You're right,we brought it back from Beluga because we had the big barge crisis over it.Getting on the barge,it was....We got it here,it may even be installed,|don't know. Doug Hall:...the reason we went ahead -we put it on hold for awhile and then what happened is the second drive back failed.The 2 year old... Brian Hickey:I'll check. Doug Hall:It may be done. Doug Hall:Yeah.|was thinking one of the outages he had he was doing something,maybe he broke it... Bernie Smith:So do we know if we need $55,000 or not? Doug Hall:Well,that's what |say,who cares... Chairman Dale:Yeah,|was just wondering if that was an ongoing... Doug Hall:No... Chairman Dale:Nothing carries over. Chairman Dale:There are certain ongoing repair charges that are up in the upper parts.Since it had called SVC repair that was something specific so that would be taken care of. Doug Hall:But,if he hasn't done it... Chairman Dale:That's correct. Doug Hall:Energy projects shows 530 million kilowatt hours of what Golden Valley's projection to take,is that correct? Chairman Dale:That is correct.I'm expecting that a large increase. Doug Hall:When's the North Pole plant going on there. Chairman Dale:April/May somewhere around that in 2006. Doug Hall:When's the testing start? Chairman Dale:Two months prior to that.It is supposed to be commercial and towards the end of April.I'm pretty sure it is going to be toward the end of May at this point.There will be some testing before then. Chairman Dale:We have load growth of approximately 35 megawatts that we're expecting between now and then. 10C Meeting Minutes July 21,2005 Page 18 Chairman Dale:Substantial amount of unit that you are going above that and coming off will betakenupbyalotofloadgrowthandstuff. Chairman Dale:Alyeska has been electrified and the Pogo Gold Mine should start operations, it's the smaller ones that you measure with multiple hands above... Doug Hall:How do you know there's such a dramatic increase? Chairman Dale:Well,it goes back when we did the forecast for last year which was April a year ago,|was out forecasting $60 dollar a barrel oil,now that it's looking like $60 dollar barrel oil | expect to be buying a lot more night and day throughout the next year. John Cooley:So the projections would stay the same even if we cut the SVC's? Chairman Dale:By usage?Back when |made my projections of my usage was based on costs similar to what we were already doing,|wasn't expecting an $11 dollar megawatt hour wheeling at that time,|was figuring it would be something like it is now and that was based on that.If we clear things a couple hundred thousand either way that's not going to change things dramatically -if we come out with a couple of million dollars it will change projections.Catch 22 that you are always in when you are trying to budget -how much are you going to buy but you don't know how many...We'd run numbers to see what my purchases would be at the higher number although it's safe to say it would probably be lower which would escalate to an even higher wheeling...The way -typically,basically the intertie is run at cost and what I'm saying is that it is the million dollars or cost.In this budget that we just had handed out and |would like to get it back down.We're doing two expensive projects;the clearing and one foundation and | don't mind doing a few studies;insurance and... John Cooley:Not insurance,the insurance risk assessment. John Cooley:That $50,000 for that. Chairman Dale:We've got money in there to do a variety of things that we wouldn't normally be doing each year and I'd like to cut the SVC out of it. Doug Hall:(indiscernible)SVC should be running through that grant. Chairman Dale:Just in general,in any year not just this year? Chairman Dale:Yes. Chairman Dale:We'd all like to look at that but we'd also like to -you don't have to have an opinion now but when we do assignments something I'd like an opinion for the State on that. And,it is my understanding that it was to extend and upgrade the intertie to the extent that there is money left over from the by-pass.It was that everybody's understanding that could be put toward upgrade sort of projects. Bernie Smith:Is this a State...where the legislators approved it... John Cooley:If it's an appropriation in 2000-2001. 1OC Meeting Minutes July 21,2005 Page 19 Chairman Dale:This is really for the State and ML&P,we got a work item on this to discuss but come up with a project management agreement which |understand has actually been sitting in ML&P's court since July -at the last set of meetings Art said it was in the State's court but I'm hearing that was back in January/April. Brian Bjorkquist:Since end of March and in the middle of May they had a word version of it so they could edit it.So basically nothing has happened since then to my knowledge. Chairman Dale:Anyway,our assumption with several of these things,both the foundations and the SVC was monies left over from that project could be used. Bernie Smith:You have to go back to the intent of the law. Chairman Dale:It's a short paragraph... Brian Bjorkquist:I'm aware of this Bernie,and we can look into it and there have been other expressions from various utilities as to what can and can't be done with the monies.So,it is not just an opinion from the State,it is looking at anything. Chairman Dale:I'm not expecting something right here at the table here.It's just long and drawn out and that we may not ever be able to use then a lot of stuff that I'm putting off is based on that |think that it can be used.If !'m wrong then |need to know about it. Bernie Smith:How much did it appreciate? Chairman Dale:Well it's going to increase the amount that |pay by $1.1 million dollars.For something that is at cost sort of thing -operation of the intertie it goes up $1.1 million dollars. Brian Hickey:Well,from a maintenance perspective we'll continue to maintain it to the best of our ability.That ability is being degraded which will result in -in time it will result in longer outages to the intertie. Chairman Dale:We're aware of that. Brian Hickey:|actually support a package whether we go out for a bond sale or whatever we have to do to replace all three at the same time... Brian Hickey:Rather than trying to push it in one at a time,you're asking for trouble,personally. Chairman Dale:!have concerns with committing the one,now you're trying to force us to commit the other two.It was raised earlier and we didn't discuss it,I'm not too sure that we can commit to future years in the IOC,this is really year to year sort of operation.With the ability of people backing out with relatively short notice and back when -I have concerns like you said of just going by our good faith along saying that in two years from now we agree that we will purchase this item from you -this third component or whatever,but we don't have the... John Cooley:Legally there are organizations that are not allowed to commit to future year purchases without a board of directors approval. Brian Bjorkquist:From the State's standpoint,we need money to pay for it before we could (indiscernible-coughing) lOC Meeting Minutes July 21,2005 Page 20 Bernie Smith:$60 dollar barrel of oil. Chairman Dale:|understand where everybody is coming from and anyways,if you guys have an opinion... John Cooley:If you got the $1,150,000 for the SVC out that leaves the budget at $2,176,000 and that puts ML&P's payment at $46,680;Chugach's at $72,830;and AEG&T is at $59,750 which is,you know,3-4 thousand dollar annual budget change,which seems like a reasonable way to go. Doug Hail:|understand your logical about the SVC's and seeing as how you are the one that's paying the lion's share of that bill,you better than anybody understand the ramifications.We cannot under the existing documents that we have fluctuate up... Chairman Dale:And you know which group we're going to be looking at don't you,Luke? Perhaps a year to see if that is still a valid elimination in line of having that vest and having thatotherintertiecomingoutofHealy. Bob Day:Gray was looking at that. Chairman Dale:That's when he was... Bob Day:Okay. Doug Hall:My only concern here is the 250,000 dollars for (indiscernible)repair.If we determine that the Moody Slide area does not require work but Curry Ridge does,in the last estimate we had from Dale,he was talking more like $1/2 million to $3/4 of a million. Chairman Dale:Right.Originally,in Bernie's budget he had $750,000 for two of them. Doug Hall:For both Curry Ridge and Moody? Chairman Dale:No because Holy Cross is going forward. Chairman Dale:Right.(inaudible) Chairman Dale:Yeah.Okay.The $250,000 was something Rich had put in figuring there were problems on the one that is on the Golden Valley side.Which is now looking like it is less than that.And Bernie had --the line above it says zero in the budget that we have that you weren't able to attend.He had $750,000 and we had removed it at that time,or at least |request that it be removed.And it was brought up,the same thing,|remember now,is that we haven't gotten that set.One has to be moving and the other we aren't sure that it wasn't a bad reading at this point. Doug Hall:Right.But it seems to me that all said (indiscernible)If these readings are correct, it's not a question of if,it's a question of when the stacks would fall over -it's going to have to be addressed... Chairman Dale:We had mentioned that -John had reminded us that in the past we had made mid-year corrections.If we get readings saying that something bad has moved over there that's something that we had -one of the things that we wanted to do was get a budget that we could agree to at this meeting because we are in the next fiscal year.The being late is actually not IOC Meeting Minutes July 21,2005 Page 21 uncommon for it to be ratified in the July meeting although it probably shouldn't be but first bills don't happen until you guys have heard voices in the middle of August so...You know,having the budget wasn't a big problem because the first bills with the new wheeling rates don't show up for another month from now.But I agree,and Bernie had brought up in the budget meeting that we really need to endeavor to have the budget ready for the fiscal year.That's the appropriate thing to do. John Cooley:Because there are so many expenditures that may increase in a project in the future,having most of you... Chairman Dale:And that's a good point.But... -John Cooley:How do you prepare in advance of all of our individual budget years probably is appropriate too so that everybody... Bernie Smith:Does everybody have a budget -a budget starts in January 1... Chairman Dale:Yup. Bernie Smith:Why -1 mean can't you amend this amendment,this agreement that ya all have and have a budget that... Doug Hall:Don't go there ..... John Cooley:Actually,the general managers are meeting tomorrow,it's my understanding, about this contract and hopefully they will have some kind of decision about how to fix some of this stuff. Chairman Dale:Right now we abide by what's in the Intertie Contract.The thing -one of the things that |find astounding that at one point in our history,if we all agreed to the same thing that's pretty remarkable.It may never happen again,it's happened once. John Cooley:When a contract was written in the early 1980's,the state legislature was set so that the state legislature would fund the operating expenses for the year and the utilities would reimburse the state as the year went on and the budget process had to go along with getting legislative approval ahead of time and all that kind of stuff.There was a big concern that if there overage the state general fund would get a hold of it,definitely the contract makes you zero everything at the end of the fiscal year and there is no way to carry any money over.The AEA got disbanded -APA turned into AEA and then disappeared and they quit doing that so we started sort of paying as you go.So that is where we are today.But,you know,what we really need is a repair fund or something that... Bernie Smith:R&R fund. John Cooley:...everybody contributes to and the excesses go into it and you fund these capital repairs and you audit it but it's never been set up. Chairman Dale:Okay.What we really need to do is to start managing like a business. (Indiscernible -many people talking) IOC Meeting Minutes July 21,2005 Page 22 John Cooley:The only problem is,who's going to pay for it.You know,somebody says I'll operate it and pay for everything,you know,that's... Bob Drake:It's the AEG&T handles all railbelts. Chairman Dale:We have different opinions on what that entity may look like too.We've discussed the budget and does everybody think they can go along with the $2.6 million is that a... John Cooley:Yes. Chairman Dale:$2,176,000. Chairman Dale:Basically,the budget as it is without the $1.15 million for the SVC in there? Chairman Dale:It's not quite what MEA has asked for which is an extension of the existing one but monetarily it is very close to the other one. Bob Drake:Actually it is.If you take the increase they have for their right-of-way,the increase in the budget. Chairman Dale:And the right of way clearly was something that was supposed to happen then...Yahoo,go with it. Chairman Dale:Okay.Then we get to section 7 on budget we'll have a move to adopt the budget as stated without the line item called SVC Repair. Bernie Smith:(Indiscernible) Chairman Dale:What? Bernie Smith:That's one toward your goal. Chairman Dale:Like John said,there is a meeting... TAPE 3 Chairman Dale:Ok,any other discussion on intertie..... Brian Bjorkquist:|just had one thing;that concept is the basis for what was proposed with this de- energizing when you have a certain amount of weight on it;that that was an actual basis for trying to make a determination when the conditions were such that there is a possibility;and if there is some way to improve that -wonderful-but that was the basis for the proposal in the first place.| just want to make that clear.So if anybody has any suggestions,on,how to improve it.|thinkthat's what we're about with moving forward with this and the 2™part that |hope nobody loosestrackofisthatwealsohavethe2™half where this is just the 1°stage where we're going to be establishing some parameters and we're going to have the independent engineer take a look at it and give us a certification that we're accomplishing the safety factor type of thing.So there's that part coming also so whatever happens today is not the end of the discussion;if there's some way to improve it from the AEA's perspective.Anything we can do to improve it is wonderful. Bob Drake:[indistinct].....one phase every 7 miles.That's just not sufficient.[indistinct] 10C Meeting Minutes July 21,2005 Page 23 Doug Hall:Since we've had that and since we've been monitoring and we've sent Paul out to proof it,to accumulate information on the database.....[indistinct]......and typically we're at a good point now where we can predict because of the nature of the way the storms come through,we can predict where we are getting accumulations and we can see because we're not doing it ....++-.[iNdistinct].....but from 50 to 70 it looks like we're getting accumulation,that's the center of the storm,that's where it's accumulating,.....[indistinct]...,that's what we're looking for.It's proven......{indistinct].......At least we've learned that. Chairman Dale:Ok,we have the majority of the utilities interactive using method of additive distances as Paul has presented.We will have a vote in the formal Operating Committee asking for recommendations on the AEA initiative that Mike ran off earlier.We'll put that up for a vote a little bit later. Ok,next issue.Anything going out on that subject? Ok,Item L -recent outages while the MEA 115 KV line was opened.We had a couple of cases with the extreme lightning we've had the 230 line is open that Chugach has where based on an outsider......[indistinct]....it appears that MEA lost significant amount of customers needlessly.If you or Chugach want to talk about .......Golden Valley ended up recording 55 megawatts of your load,approximately 50 megawatts of your load while |had 70 some-odd megawatts ___-and trying to pull a frequency of 59 as high as |could get for about 25 minutes later.We finally had to dump it.Obviously that's not the way my system is designed to have a like that from 60 megawatts importing to 50 some-odd megawatts exporting.Had your 115 line ...[indistinct].......closed,it would probably mean a non-issue.You guys still feeling that's in your best interest to run that way operationally? Bob Drake:Not arguing at all but at times there may well be an argument that having it closed is a good operating decision,but we have found through our own review......[indistinct]....The majority of the time,my system functions better when it's open.[indistinct] Doug Hall:Just so I'm clear,Is this the same issue that we talked about during the RCA/Porter negotiations? Chairman Dale:|wasn't aware that you've had that from an outside view.|don't see a whole lot of what goes on there.The majority of the time |see you loosing half your load as opposed being able to keep it in and continue.Even though you've taken that one piece of loop and broken it so that only ¥%goes out at a time,you've increased your exposure so that when 1%goes out another big chunk of your load goes out with it and vice-versa on the other side.From all the outages that I've seen,I'm surprised that your numbers in your statistics are saying you've reduced consumer...{indistinct].... Doug Hall:|would agree with him because |deal with quite a bit of analysis on #4 and #5 and we were having a lot of blackouts on the Kenai and at that point and time you guys had the best power...[indistinct]...grid;better than Chugach because you had 3 sources.In the 80's when we had lots of systems blackouts Chugach commissioned SEI to study the grid and they produce a 1992 Southern Engineering Report that has .....[indistinct].....transmission lines.Basically we eliminated most of those blackouts that used to occur 3 or 4 times per year.One of the recommendations of SEI was that we close all .....[indistinct]....of the system.And we went through and did that.And that's a lot better way to run a transmission grid.It's much more reliable and it's closed.|find it hard to believe the stats are out there showing opposite,at least up until 1994-95 they weren't,so it would be interesting to look at all the data....[indistinct]....,and then we got some bad data,| guess. IOC Meeting Minutes July 21,2005 Page 24 Chairman Dale:|appreciate everybody's comments but as |said before.......[indistinct]... Chairman Dale:Anybody have any questions on the outage of the 14'"? Doug Hall:We did have a chance to discuss it,at least in the Dispatch Sub-committee;Doug, myself,Steve from MEA.We discussed it quite a bit.One of my concerns at the time was that the Northern Intertie which contains a big chunk of you guys went .....[indistinct]......on several occasions and |did not see that going on in your system.....[indistinct].... At the time we went out and it was never restored.......[indistinct].....and that's why we never saw; every time we dropped down to......{indistinct].....He felt it was because you'd lost load and it stayed off ........[indistinct]......|had the issue I'd brought up about communication where we were going to talk to you through MLP but that didn't work out too well.As you know|have that relay in place that's supposed to look at rate of change and drop you guys off when we relay out during island conditions.We systemized it so we know that the rate of change is very high.That relay didn't work and we've had emails out trying to figure,find out why the rate of change triggered the reverse power of the 20 megawatts south triggered,there's also a correctional overturn element that triggered as it was supposed to and then dropped out so we think it was either something that ....[indistinct].....algorithm or something bad with relay itself.In either case that element isn't necessary for what we are doing so we will probably turn that piece of ....[indistinct]....off ....[indistinct]....since it is not being used.In this case it did drop you guys off immediately which we could've made the thing a very minor problem for us. Chairman Dale:I'm sure the reliability Sub-committee has a lot to add on to this.[indistinct chatter, laughter] John Cooley:.....If MEA had had a significant outage,our dispatcher would've realized where the problem was and we would've fixed it a lot faster. Chairman Dale:Unfortunately we had,my dispatcher felt pretty strongly that we would likely be islanded but your dispatcher felt pretty strongly that we were together so |didn't want to open up - if we were all going down,we all go down. Chairman Dale:I'm good with that [laughter,indistinct chatter] John Cooley:That's one of those cases of a little ....[indistinct]....,you guys say,"I'm at 59 and | can't hold it”and the other guy says "I'm at 59,9 and I've got a problem”. Chairman Dale:That was one of the problems in the first 5 minutes of frequencies trapped pretty good and that's when my guy called and checked frequency and we were reasonably close.And then immediately |have .........[indistinct].....that he'd already checked frequency so that he didn't think that there was a problem and then of course your guy kept reassuring us that we were still tied together.Yeah,it was just bad luck that when they did check frequency it happened to be a time when we were crossing.What ....[indistinct].....said about continuing communications,hadtheykepttalkingtoeachotherandsay,"I'm going through 1°stage shedding,then you would've known we were definitely different at that point.We would've been able to close the situation a lot sooner.When Dennis checked,the first 5 minutes we actually,surprisingly,because |shed 72 megawatts we were real close to the ......[indistinct}.... Chairman Dale:Ok,|just wanted to bring that up;we keep seeing occasions where it looks like it's worse for you and it's certainly worse for us and I'm not seeing that many occasions where it's good for you. IOC Meeting Minutes July 21,2005 Page 25 Bob Drake:My question is since you said you're willing to close it up for maintenance,how do we determine which ones of those are appropriate. Bob Drake:...[indistinct]...request it be closed for some particular reason,we would certainly take that reason into account when we discuss it.....[indistinct]....your decision. Doug Hall:.......[indistinct]......|suggest we set the message.......[indistinct]............that didn'thappenThursdaynight.They were talking but if your guy had said,"You know that's the 2™time I've gone through 59.0 and what the hell is going on down there?”the Chugach and MLP guys are sitting down here going,"what the hell is he talking about 59.0,we are running high” Chairman Dale:|don't know that he brought that up.After the initial,in the first 5 minutes,|think it was discussion going on and various times afterwards.|think when they told you guys you could start restoring load,which didn't help us a whole lot,they also told us we could start restoring load, and that's part of why we kept going for L59 is that we both put in for breakers and frequency go crashing down and my guys said,"you know what,it sure doesn't seem like we're connected.” Bob Drake:How is it that the 3 main generators are the same?It doesn't have a meter up there that shows the other generators,what the frequency is. Chairman Dale:Part of,|don't see what's going on down here and they don't see what's going on.The 230 line was open on one end only and they tended to fixate at the end that was closed and everything looked good and breakers closed line must be in service instead of looking at the bigger picture,the whole picture. Bob Drake:........[indistinct]....showed me the frequency in the ....[indistinct]....area was 59 and mine was 62.|suspected that we were no longer glued together. Doug Hall:What we were saying here is that there was dispatcher error going on because there's a process,you can go to one map and it'll tell you whether you're idle or not and the guys didn't bring up that map on either assistance.There's dispatcher error and we're not saying guys didn't, you know,there's plenty of information out there and if you've ever been in a control center when the whole thing kinda ices on you......[indistinct]....There's plenty of information out there.......[indistinct]...... Doug Hall:We were absolutely .......[indistinct]........until |talked to Kevin.When |asked how the hell did you have me island ......[indistinct]......He said,'It was easy,lightning struck the MacKenzie terminus and as a result we dumped you on the MacKenzie line.The breaker was outofservice.”These guys were on a 2™contingency.The day that breaker was taken out of service for maintenance,the loop should've been wiped out.........[indistinct]...that is it. Bob Drake:Doug,practically we have breakers out of service every day of every week of every year and the loop outta be closed all the time because theirs is;we don't have enough people to sit down and figure out all of the "M”minus 1 scenarios everyday that might take out veteenees [indistinct]......because they chose to open the grid up.|wouldn't buy into that because coming out of me........{indistinct]..... Doug Hall:But in this case you got MacKenzie plat 2,you got MacKenzie fueling line all on that one piece of .......You should take that breaker out.... Bob Drake:|understand how the system works Doug.|'m just telling you that we do that everyday of every week,365 days a year somewhere in this system there's a breaker or transformer out of IOC Meeting Minutes July 21,2005 Page 26 service and a dozen M minus 1 contingencies or a hundred for every breaker we take out and I'm not saying it could not be fixed figured out everyday with enough time and money an people but, the answer's close up the transmission system.That's the freaking answer,it's not....[indistinct chatter,noise]..... Chairman Dale:One silver lining that 1 will add though is that apparently earlier that day MEA when they loop,did report it to .....[indistinct]...control centers.It was in his log and my dispatcher was ....[indistinct]....his memory because we talked about whenever open a loop you need to tell us.When they did open the loop,they did tell us.So at least that was one less thing they had to think about because it was just a few hours earlier,during the day shift -(this was 10 o'clock at night),but during the day they'd done some operations and they did report to everybody what they did. Doug Hall:And that's what happened last night. Chairman Dale:Alright,any other words on the recent outages?Hopefully this lightning season is a rarity.We've gotten more this year than we have any other year,even more than a decade. GENERAL DISCUSSION Chairman Dale:Anything anyone would like to discuss?Let's move on to 7;Formal Operating Committee Actions,and Acclamations. 3.Formal Operating Committee And Acclamations Chairman Dale:|have two letters for us to vote on.One is the Intertie Clearance Distance.Two proposals for our ...[indistinct]....One proposal is for,what I'll call is the CEA proposals,which is to use 23 feet of the minimum ground clearance,consisting of 4 ¥%feet for electrical,5 ¥%ft for snow, 1 foot safety factor and 12 ft for obstruction height and also for the actual snow depth.....[indistinct]....Anyways,we have that proposal on the board,which we will vote on and then we also have the MEA proposal.......AEG&T.....So we have the one proposal;the CEA Initiative.Let's go around at the table on the vote: Paul Williams:Before we vote,if |can interrupt for a minute.The snow depth of 5.5 is what Chugach wanted and if it's less than that we interpolate;what is that?I mean typically we have snow depths out there less than 40 inches so does that mean if it's 3 %feet and now instead of 23 we're at 21 or is there a safety factor you want all the snow capped at? Chairman Dale:I'm gonna let you read it here.My intent was that;5.5 feet was the max we've ever recorded out here.So this year if we only got 3 feet out there we could allow 2 %feet more clearance. Chairman Dale:Golden Valley will vote YES to adopt the CEA proposal.Chugach? John Cooley:YES Chairman Dale:....[indistinct,barely audible]....."The State” Bernie Smith:YES Chairman Dale:MLP IOC Meeting Minutes July 21,2005 Page 27 Bob Day:YES Chairman Dale:.....{indistinct,barely audible]...."AEG&T” Bob Drake:No Chairman Dale:|show 4 Yes's and 1 No;80%and it passes. Chairman Dale:Ok,the 2™to vote on and that's the budget.The motion is to adopt the budget as submitted without the line item called SVC repair. Chairman Dale:Golden Valley will vote YES to adopt.Chugach? John Cooley:YES Chairman Dale:....[barely audible]....."The State” Bernie Smith:YES Chairman Dale:MLP Doug Hall:YES Chairman Dale:.....[indistinct,barely audible]...."AEG&T” |Bob Drake:Yes Chairman Dale:The budget as modified is adopted. John Cooley:|think we need one more move to adopt the ....[inaudible "Net Peak']that's listed AEG&T 23.3 megawatts,MLP 18.2,Chugach 28.4 and Golden Valley 70. Chairman Dale:Are we required to adopt that or isn't the formula already there? Doug Hall:The formula's already there. John Cooley:We've always had it in the past. {indistinct discussions] Chairman Dale:|understand that......[indistinct]...don't have a problem with it.Actually Net Peak is a big deal even outside the budget typically because it happens in one direction;what | mean it's a non-issue but back in the day when .......[indistinct]..... John Cooley:If you end up not using all you say you used and made up for the deficit for the year, we get billed by it so |think it's important.And it's also just in case,you think somebody's lyingabouttheirpeaksorsomething.It just makes it - Chairman Dale:|don't have a problem with that.Chugach has made a motion to adopt the Net Peak calculations as are proposed in the budget. IOC Meeting Minutes July 21,2005 Page 28 Bob Drake:Excuse me but,that part |hadn't considered.|thought that this was something that was already a part of the process and if you have to approve it then I'm gonna have to go look at this closer. Chairman Dale:Is this a closer5 minutes or a closer longer than that?Ok,|guess we will not vote on that.|don't know that that stops the budget but the request that MEA has made is a reasonable request.|didn't have it on the agenda that we would be voting on the Net Per. Bob Drake:.......[indistinct]...long than that... [indistinct discussions] Brian Bjorkquist:On the Net Peak,if you look at §7.2.1,"the Operating Committee shall return aNetPerbyJune1°each year when a new participant becomes a party to this agreement ". Doug Hall:It's just a share of that.......[indistinct]......for us to adopt that and I thought that share Brian Bjorkquist:............its is determined each year. Chairman Dale:It 'is'determined each year because it's based on your maximum through year peak demand. Brian Bjorkquist:Now whether that has to be voted upon for it to be determined or whether it's just a calculation that gets determined,|can't read that into this. Chairman Dale:|got last year's notes,July we were here and we voted on the budget but I don't show that we voted on Net Peak.|didn't bring any of my notes from prior to 2004. Bob Drake:Ok,lets go with the numbers that you got [indistinct]......'m not disputing this,|didn't realize that something was there for us to vote on John Cooley:In July of 2003 we're gonna go with the budget [indistinct] Chairman Dale:|was probably conducting the meeting last year and |didn't do it right did 1?| wasn't aware that |was supposed to,so.... |guess it would change some parts of the budget if we did a vote on it next time.Steve Bob Drake:It would be fine with me if everybody wants to vote...[indistinct].......or Chairman Dale:And like so many things,it may not matter [loud laughter,indistinct comments] Chairman Dale:Historically |do not have it on the agenda by mistake.Historically it appears that we do generally vote on Net Peak outside of the budget because it does have other ramifications, non monetary ramifications,so John has made a motion to adopt the Net Peak calculations. Golden Valley will vote YES on that,yes to adopt the calculations that are there.CEA: John Cooley:YES Chairman Dale:The State? Bernie Smith:YES 1IOC Meeting Minutes July 21,2005 Page 29 Chairman Dale:MLP? Doug Hall:YES Bob Drake:YES Chairman Dale:Do you wanna abstain?[laughter,indistinct chatter] Ok,what we have,4 yeses and a question;it passes.It will only be an issue if some time in the next 12 months that the intertie "heads south”and you guys argue if you're gonna get a fair share and |think there is a ....[indistinct]....charge;that there is a monetary ....[indistinct]....charge that's tied up with that. John Cooley:No it's not,once they purchase......[indistinct]......they changed APA to AEA.Then they went away to fix the cash flow. John Cooley:If they can change that,how come you can't change the year end.......[indistinct]... wee? Chairman Dale:It was non-controversial.It's something we knew we were gonna pay and I'm not a lawyer,|don't wanna get into their business. John Cooley:But there's no wording in here that says that the Operating Committee can't change this contract. Chairman Dale:Right there,there is a paragraph that we can't change the contract. John Cooley:It has to do with the rates or whatever,so. Chairman Dale:Right.Ok,we had 3 ....[indistinct]....|don't have.Assignments:Dispatch Sub- committee,there are things that they are doing.|don't think we have any additional assignments for them.Anybody recollect differently? Doug Hall:|do have an assignment......[indistinct] Chairman Dale:Ok,Reliability/Protection Sub-committee,|am assigning their chair to get that group together to discuss [indistinct chatter,laughter].We need to know what the solution to that problem is.[indistinct chatter,laughter] Machine Ratings:|have no assignments for those.Heater Metering,continue on,|have no additional assignments for them.Maintenance Sub-committee:Don't really assignments for the Maintenance Sub-committee unless somebody else does.We would like the body or one of the Maintenance Sub-committee needs to be appraised on your clearing contract or if you do end up having to go with somebody else or whatever,we just want to keep informed on that. Chairman Dale:Typically,and |don't know how bad it is down there,but the time is critical but it is something you have to do eventually and if you miss a month or miss a couple of months not a ....[indistinct}.... Bob Drake:|will probably give thema letter that says he has two weeks to [indistinct] Chairman Dale:Ok,the Budget Sub-committee,we have no assignments for them. Bernie Smith:We are going to have a mid-year budget review. 10C Meeting Minutes July 21,2005 Page 30 Chairman Dale:...IOC to have mid-year to call the committee together for a review.We've never had one before we'll ask for it and maybe we'll get it.For next year the question is,of course, being several weeks into the fiscal year,is this something we wanna have behind us by the end of June? Bernie Smith:YES Chairman Dale:There was a recommendation in Kenai that if your year ends on June 30")itbetterbeoutthereandapprovedbeforeJune30". {indistinct,indistinct chatter,laughter] Chairman Dale:This is not an assignment but if John could provide me with the Qualified Interconnect Agreement that Chugach has.And last one,Bernie had brought up a good point as being quite some time since we'd gotten a list of all the names and emails of the members andalternatesandSub-committee members so |will send out each Sub-committee chair to compile a list their emails,send to me and |will send a copy to you Bernie so you will have an list of everybody. Bob Drake:Frank is on the committee and then can put himself on any committee he wants [indistinct chatter,laughter] Chairman Dale:So officially as of the end of this meeting Frank is the MEA rep and do you recall who your alternate was?Is it still whoever it was,which |don't remember?Charlie will be your alternate. Brian Bjorkquist:Excuse me.As|tried to explain that's not just a question for the State,that's a questions for everybody also because I've heard many opinions from many utilities represented at this table that are very conflicting and if you think that we are just gonna go out and tell you what it is,and,you know,|don't think that's going to happen. Chairman Dale:Ok,and assignment to ourselves to come back with what our utility........[indistinct] Brian Bjorkquist:We may have some discussions about how,what you think it means as what you thought it meant before and that type of a thing....[indistinct chatter,laughter] Chairman Dale:Ok,anything in particular anybody want to see on the next agenda?It will be at MLP. Doug Hall:In Oct or Jan? Chairman Dale:Next order is Oct,this is July,Aug,Sept,.......[indistinct] Doug Hall:There's 5 people and only 4 meetings per year,it doesn't stay the same. Doug Hall:We've been doing January for years. Chairman Dale:Last year when we did MEA,the next meeting we did MLP,|didn't look at the date on it. John Cooley:We did MLP in January. IOC Meeting Minutes July 21,2005 Page 31 Chairman Dale:1 think we did Chugach in January. [indistinct chatter] Chairman Dale:|have modified that agenda that we will meet at Chugach in October.|think |dropped AIDEA out of there because so many scheduled meetings that,uh.... Doug Hall:Plus AIDEA won't buy you lunch [indistinct chatter,laughter] John Cooley:.....[indistinct]....MEA and Chugach is on that day,so we need to move one of them. Chairman Dale:|will leave it on the agenda as October 20".If there is a conflict that you guys can't resolve,get back to me asap and I'm sure we can find out another time then. Doug Hall:We'll leave this one and change the other one to a week later?Ok. Chairman Dale:How many more assignments do we have;1 or 2?[indistinct chatter] John Cooley:There's like a $250,000 difference between this and here and it shouldn't have been. There maybe should've been a rounding error of $1,000 or something but |don't know what you did wrong.Something's not right.[indistinct chatter,noisy background] RECORDING ENDS Alaska Intertie staff working meeting Page 1 of 1 Brenda Fuglestad From:Art Copoulos Sent:Thursday,July 21,2005 9:17 AM To:Bernie Smith;Ron Miller;Karl Reiche;Mike Barry;Brian Bjorkquist Ce:Brenda Fuglestad Subject:RE:Alaska Intertie staff working meeting -confidential Sorry but |won't be able to make the call after all.The wake goes until 8PM eastern time and then |have a 1 hour drive home. My comment for the GM's are as follows: 1.We have been working on funding the repair projects (on snow loading,tower foundations,and SVC's)for about 2+years and there is still no funding mechanism.Yes the repairs have proceeded but too slowly and the slow pace raises concern that there could be an extended outage resulting from the repairs not being completed.The lack of funding appears to me to be the cause of the slow pace of repairs.In the case of the SVC's AEA's contractor,EPS requested some support information from CEA and GVEA back in February and recieved no response. 2.|also suggest mentioning to the GM's that |submitted my resignation to AIDEA effective August 15th so anyquestionsrelatedtotheaboveissuesorrelatedtotransitioningthisprojectcanbedirectedtomepriortomy departure.(That would be true on other projects as well). Art From:Bernie Smith Sent:Wed 7/20/2005 3:53 PM To:Ron Miller;Art Copoulos;Karl Reiche;Mike Barry;Bernie Smith;Brian Bjorkquist Cc:Brenda Fuglestad Subject:Alaska Intertie staff working meeting Thursday at 3:30 pm in the Board Room (I hope).Art will call at 4:00 pm. 7/21/2005 HOW COLLECTION OF INTERTIE AGREEMENTS ARE WORKING Successful Intertie Operations to date: Largely uninterrupted power flow since construction.The project has operated relatively "trouble-free”since construction with no major outages or costly repairs required. Cost Savings and Revenue Benefits: GVEA is able to purchase low cost "non-firm”energy,achieving cost savings and CEA and ML&P are able to sell excess capacity,increasing revenue.Presumably these benefits are transferred to ratepayers. Interconnection and Access Provides GVEA access to Bradley Lake Power and to "Anchorage area generation”,both of which provide low cost sources of energy.This diversifies GVEA's "energy mix”to include hydro and gas-fired generation.Interconnection may also provide the opportunity to share energy and development costs associated with other future developments throughout the railbelt. No follow-on state funding required to date: Intertie Participating Utilities have paid all project O&M costs based on capacity and usage. Currently GVEA is the primary user paying most of the costs while receiving most of the benefits.In recent years,O&M expenses have been substantially under budget resulting in significant annual refunds to GVEA. Joint utility operations: Agreements provide framework for utilities to work together to dispatch power jointly.Also theIntertieagreementcontainsspinningandoperatingreservesprovisionsimportanttoensure system-wide reliability.Lastly,participating utilities can work together to reduce outages system wide and increase reliability. HOW COLLECTION OF INTERTIE AGREEMENTS ARE NOT WORKING HCCP: The Intertie allows energy that might have been purchased from HCCP to be displaced by power purchased from elsewhere on the railbelt grid South of Healy,thereby diminishing the benefit of the public expenditures on HCCP and the Northern Intertie. No State Benefit: Although never an intent of the Intertie agreements,the state receives no cost recovery while maintaining some liability for the project. No Capital Fund and Intertie Agreement Actual Practice vs Documented Practice: The Intertie agreement was established without any mechanism for capital funding of repairs. Attachment #1 are changes previously proposed by CEA in a good faith effort to modify,update, and improve the Intertie agreement.The CEA proposed changes largely relate to budgeting and capital funding,and note that AEA is not following actual practices on certain actual practices outlined in the agreement.Justifications for recommending these changes,as noted by CEA,are that "several provisions are no longer being applied because the situation has changed and the Utility Participants fund all expenses.”CEA's proposal was not adopted by the IOC. Intertie Repairs: There are 3 major repairs related to safety and operation of the Intertie -SVC repairs,snow load repairs,and tower foundation repairs.An October,2003 description of the repairs needed and staff recommendations are in attachment #2.These recommendations were followed by discussions with participating utility General Managers in late 2003 at which time there was consensus amongst the General Managers that participating utilities would fund these repairs. Subsequently,the following IOC actions were taken: SVC and Tower Foundation Repairs:On October 16",2003,the IOC passed the following motion:"The IOC endorses the maintenance subcommittees recommendation to replace controls on all 3 SVC's with commonality of spare parts,repair towers #274 and #297,and requests that AIDEA,in consultation with Participating Utility General Managers suggest a means of funding that would be repaid through Intertie Revenue." Snow Load Repairs:On April 15,2004,the IOC passed the following motion:"Pursue option 2-b (installation of inset towers with price ranging from $13.8 to 16.9 million)and ...have Engineer refine their numbers. Support for these repairs has been demonstrated at the 1OC and General Manager level and preliminary engineering has proceeded on the SVC repairs and the snow load problem, however major funding is not yet in place.Without that funding in place,delays towards completion of these major repairs is likely.A follow-up meeting to further discuss capital fundingwithutilityGeneralManagersisbeingplannedforonorafterMarch15".At this time General Managers will be in a position to finalize the amount and type of funding required to initiate detailed engineering and construction on these repairs.Absent a commitment to fund at this point,delays would be expected. To date,the IOC has not supported having an independent 3”party review of the snow load problem as recommended by AEA in attachment #2 and as suggested in subsequent IOC meetings. Intertie Bypass Project A preliminary route selection and cost estimate has been completed.The project is on hold pending completion of a planned Project Management.Delays have occurred,although the cause of these delays can not be attributed to the Intertie Agreements,and are related to the project uncertainty and other factors. Inequitable Spinning Reserve Allocations: ML&P often provides an amount of spinning reserve greater than its required "share”as required under terms in the Intertie agreement.ML&P has proposed to the IOC to reallocate or be compensated for this "excess spin.”ML&P's proposal did not pass the IOC and remains unresolved. Management Structure: While the |OC and its various subcommittees are staffed with highly qualified professionals, "management by committee”is problematic,especially when the IOC lacks a decision making authority comparable to the Bradley BPMC,which is staffed by Utility General Managers. AEA's Inability to Exercise Management Control: AEA is the project owner yet the project is managed and funded by the IOC under terms of the Intertie Agreement.While the owner has certain non-delegable rights and responsibilities,AEA lacks the authority under the Intertie agreement to fully exercise its non-delegable rights and responsibilities.Under the Intertie agreement,the 1|OC has no obligation to fund or respond to AEA directives.: Transmission Sharing:: Major disagreements over sharing a portion of the MEA owned line has resulted in an RCA action to keep the line open,establish revised wheeling rate,and other actions.Future use of this section of MEA line to account for future upgrades remains potentially problematic that would be unresolved until completion of the Intertie bypass project. TIMELINE TO BRING INTO COMPLIANCE Problems in the Intertie Agreement could be brought into compliance by modifying the Intertie agreement.Modifying the agreement would require some utility consensus which make the timeline unknown and results may be difficult to achieve.There is cancellation provision in the agreement requiring 4 years,although cancellation poses certain risks largely related to not achieving prior listed benefits.Any impacts or risks to AEA would need to be defined. Attachment #1 CEA PROPOSAL TO IOC Background Agreement was implemented in the mid 1980's when the State Legislature appropriated money to operate the Intertie and the Utility Participants reimbursed the State for expenses.The Agreement was also written to prevent any excess funds from reverting to the State general fund.Several provisions are no longer being applied because the situation has changed and the Utility Participants fund all expenses. Proposed Changes e Delete section 2.2.3,which allowed any Participant to terminate its participation within 30 days of AEA issuing any debt for the project and add a provision that requires IOC approval in advance of any debt for repairs or enhancements to the Intertie. e Add to section 8.1 a provision for a maintenance reserve fund. e Rewrite section 8.1.3 detailing the budget process.The 13-month process and approval by the AEA Board is not being followed.Approval by the IOC prior to the start of the FY should be adequate. e Rewrite section 8.2.2 to use a multi-year average but not less than 30%of capacity as the annual energy usage estimate. e Possibly revise section 8.2.5,energy rate,but retain the 83.5%allocation to energy. Rewrite section 8.4.5 to put year-end surplus (revenue minus expenses)into the maintenance reserve fund. e Rewrite section 8.4.6 to fund year-end shortfalls (expenses minus revenue)from the maintenance reserve fund unless the fund drops below some floor in which case the shortfall would be assessed on the basis of MITCR.. e Add section 9.1.3 giving IOC budget approval authority. e Delete or rewrite section 10.3,Budget for Operation of the Intertie,to eliminate the fixed costs for operators.Any new section should reflect actual practice.Steps outlined have not been followed since AEA succeeded APA. Attachment #2 _TO:Ron Miller Executive Director FROM:Art Copoulos Project Manager DATE:October 21,2003 SUBJECT:Alaska Intertie Problems An Intertie Operating Committee (IOC)technical subcommittee,in its "Alaska Intertie Upgrade Report”for the IOC dated October 2002,identified several significant problems on the Alaska Intertie,including problems related to SVC repairs,Tower foundations,and Intertie Snow Loading.Matanuska Electric Association,in a memo dated September 11,2003,also highlighted concerns related to Intertie Snow Loading and indicated their intentions to not renew their maintenance contract.These issues were also discussed at the IOC Maintenance subcommittee meeting October 14,2003,and at the IOC meeting October 16,2003.A summary of these specific problems areas is as follows: SVC repairs: The 3 existing SVC's on the Alaska Intertie are in need of replacement parts and many of those parts are no longer manufactured or are difficult to locate.A recent study by Electric Power Systems (EPS)indicated that due to their obsolescence,obtaining necessary spare parts for the SVCs could cost approximately $500,000.00.Intertie downtime or operation at a reduced operating capacity while needed parts are reverse engineered could also be incurred.This problem has been understood for a number of years and the magnitude of the spare parts issue was recently quantified with the EPS study.As an alternative,ABB recently completed a budgetary proposal for various upgrade options on these SVCs. On October 14",2003,the IOC Maintenance subcommittee asked that ABB update their previous proposal with the intention of recommending to proceed with annual controls onlyretrofitsontheSVC's,providing acceptable terms can be arranged.On October 16",2003,the IOC passed the following motion:"The IOC endorses the maintenance subcommittees recommendation to replace controls on all 3 SVC's with commonality of spare parts,repair towers #274 and #297,and requests that AIDEA,in consultation with Participating Utility General Managers suggest a means of funding that would be repaid through Intertie Revenue." Tower foundation repairs on towers 274 and 297: The downhill (East)foundations for Towers #274 and #297 in the Chunilna Ridge area of the Alaska Intertie have experienced significant settling,rotation,and lateral movement.Cable and turnbuckle assemblies were tensioned between the legs of the towers as a "temporary fix."As a part of an ongoing and active inspection program,the towers were inspected this summer by MEA and the results,which were faxed to the |OC on September 9,2003 (attached),indicate just under an inch of anchor bolt slippage on anchor bolt E4 on the East Foundation of tower #274.Based on previous correspondence,Dryden &LaRue believes "the foundations likely will continue to move in small amounts,which may eventually lead to an irreversible structure failure"and has recently recommended "that a permanent fix be implemented at these two towers.” The IOC and Intertie maintenance subcommittee have discussed the need for a permanent fix and the possibility of having spare Lindsey towers on hand to replace these towers in the event of a catastrophic failure.A repair is complicated by the lack of vehicle access. On October 14",2003,the IOC Maintenance subcommittee recommended that the |OC fund repairs on both towers.The IOC Maintenance subcommittee also continued to pursueevaluationofthepurchaseofspareLindseytowers.On October 16",2003,the IOC passed the following motion:"The IOC endorses the maintenance subcommittees recommendation to replace controls on all 3 SVC's with commonality of spare parts,repair towers #274 and #297, and requests that AIDEA,in consultation with Participating Utility General Managers suggest a means of funding that would be repaid through Intertie Revenue."The approximate total cost of these repairs is 2-3 million. Intertie Snow Loading: The IOC has recognized certain risks related to snow loading of the Intertie and there have been prior reviews of the problem.Matanuska Electric Association (MEA)documented their concerns regarding the extent of the problems related to the SLMS in the attached memo dated September 11,2003.MEA noted in that letter that "it has been known since at least 1990 when AEA ordered warning signs posted,that the Alaska Intertie was designed with too much flexibility to meet this standard (prudent utility practice)under the unbalanced snow and/or ice loading conditions that commonly occur in winter between Douglas Substation and Clear Creek."MEA recommends that the line be de-energized in the winter snow and ice season,that it be patrolled daily,and that grounding equipment be installed to discharge accumulated static electricity. On October 14",2003,the IOC Maintenance subcommittee supported continuing current practice of snow load monitoring continue as a way to mitigate the risks associated with snowloadingoftheIntertie.On October 16",2003,the IOC passed the following motion:"The IOC considers the current Snow Load Monitoring Practices consistent with Prudent Utility Practices and the Intertie should not be taken out of service absent a known specific problem." Maintenance Contracting In addition to these problems,MEA has announced its intentions to not renew its Maintenance contract with AEA,effective September 30,2004. AEA Staff Recommendations: SVC repairs: AEA staff concurs with the IOC recommendations that all 3 SVC's with commonality of spare parts be repaired.AEA should recommend proceeding with development of a work plan and repairs in a timely fashion.The work plan should include recommendations on how the SVC's should be repaired including an analysis of options;an assessment of the failure risks and costs associated with potential Intertie downtime or instability that could result from not addressing problem areas;a timeline to complete the work so that extraordinary costs,risks,or extended outages are avoided;and any other items that the IOC feels is needed to be addressed.Much of the work plan has been completed in work previously performed by ABB and EPS. Tower foundation repairs on towers 274 and 297: AEA staff concurs with the |OC recommendations that towers #274 and #297 be repaired.AEA staff recommends proceeding with development of a work plan and repairs in a timely fashion. The work plan should include recommendations on how these problems areas should be repaired including an analysis of options;an assessment of the failure risks and costs associated with potential Intertie downtime or instability that could result from not addressing problem areas;a timeline to complete the work so that extraordinary costs,risks,or extended outages are avoided;and any other items that the IOC feels is needed to be addressed. AEA should also support the IOC Maintenance subcommittee's efforts to determine the feasibility of acquiring spare Lindsey towers. Intertie Snow Loading: AEA should recommend that the IOC hire an independent engineer to evaluate the operational risks associated with the snow loading problem and the effectiveness of the current monitoring program.The independent engineer should recommend whether any improvements are needed to continue operating according to prudent utility practice. Maintenance Contracting: MEA has announced its intentions to not renew its Maintenance contract with AEA,effective September 30,2004. AEA should solicit participating utilities interest in assuming MEA's role of maintaining the Southern portion of the Intertie and determine their interest by November 15,2003. ° KAKKKKKKKKKKRKKRKEKKKRKKKKKAKRREE FROM AEA -Art Copoulos Here's a list of ongoing issues with respect to Intertie Maintenance and Operation: 1.Capital Repairs -There is no capital fund for repairs and as a result necessary capital improvements have been deferred.This is despite the fact that wheeling chargeshavegeneratedrefundstoparticipatingutilitiesofapproximately1.6 million in excess of expenses over the life of the project.When the Intertie Agreement was initially putinplace,no capital fund was established out of concern that excess revenues could revert to the state General Fund.Recent efforts to establish a capital fund have not had anyresults.Questions about the viability of the line may contribute the current inabilitytofundcapitalrepairs.Some specific maintenance and operation items are: Tower Foundations -Several tower foundations are misaligned.Although failure is not imminent,the lack of a capital fund has stalled efforts to complete a physical repair or a repair plan that can be implemented on short notice in the event of a catastrophic failure. SvC's -A recent study indicated that due to their obsolescence,obtaining necessary spare parts for the SVC's could cost approximately $500,000.00 and possibly result in Intertie downtime or operation at a reduced capacity while needed parts are reverse engineered. This problem has been understood for a number of years and was recently quantified with a study.The lack of a capital fund has stalled efforts to complete a physical repair or a repair plan that can be implemented on short notice in the event of a catastrophic failure. Snow Load Monitoring System (SLMS)-The IOC has recognized certain risks related to snow loading of the Intertie and managed the risk using the SLMS.The SLMS represents a means to manage the problem not eliminate it.MEA has maintained the SLMS is not prudent utility practice and disclaims any related obligations. The lack of capital funding seems to be limiting efforts to solve the problem. System-wide modeling -As new equipment is added to the railbelt system,such as GVEA's BESS system or new types of generation equipment,system stability and reliabilityisimpacted.A system wide study is needed to evaluate these impacts.Efforts to complete a study seem to be hampered by funding limitations. It should be noted that certain high priority items related to safe operation have received funding,such as recent funding of relay upgrades and repairs at the Douglas substation. 2.Spinning Reserve -The operating sub-committee recommended to the IOC that certain provisions related to Spinning Reserves be implemented and clarified so that spinning reserves could be allocated amongst utility participants according to terms of the Intertie Agreement.A vote on that recommendation was deadlocked (2-2)resulting in no action.ML&P has viewed this result as creating an undue burden on their generating system. 3.Intertie Agreement Terms and Conditions -The Intertie Agreement has provisions that have not been followed exactly. Examples are that budgeting and reporting do not follow the timelines specified in the agreement,or #3 above from certain utilities perspectives.This brings to question which provisions are being followed exactly and/or closely monitored. Intertie Maintenance Subcommittee Meeting notice and agenda /s-/ The IOC Maintenance Subcommittee meeting is scheduled for Tuesday January 11,2005 at 10:00 am at the AIDEA Headquarters building in Anchorage. Tentative Agenda: 1.Status on procurement of the SVC controls upgrade. 2.Status on the Inset Towers for the Intertie 3.Status on the SLMS activities 4.Status on the IOC funding repairs for towers 274 and 297 aie we 5.Maintenance and Patrol Updates for the Intertie - Cleanny 6.Station Service Transformer Update 7.Open Agenda 8.Date and time for the next meeting Please do not hesitiate to contact me if anyone wishes to add or modify this agenda. Thanks Charlie Kimmel Manager,Substation Operations,CEA 907-762-7661 ReL- fer Alaska Industrial Development and Export Auth Alaska Energy Authority June 21,2005 Mr.Wayne D.Carmony General Manager Matanuska Electric Association,Inc. P.O.Box 2929 Palmer,Alaska 99645-2929 Dear Mr.Carmony: Per your request,attached are copies of the tapes from the Thursday,June 9,2005,IOCmeeting(two tapes total). Cost:Two Lanier tapes @ $5.47 each =$10.94 Please submit payment to: Alaska Energy Authority Attention:Shellie Helton 813 W.Northern Lights Blvd Anchorage AK 99503 Sincerely, Bernie Smith Project Manager cc:Shellie Helton,Accountant 813 West Northern Lights Boulevard *Anchorage,Alaska 99503 907 /269-3000 *FAX 907 /269-3044 *Toll Free (ALASKA ONLY)888 /300-8534 *www.aidea.ore