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HomeMy WebLinkAboutIMC Resolutions 2011INTERTIE MANAGEMENT COMMITTEE RESOLUTION No.11-1 PURPOSE:The purpose of this Resolution is to establish that the Intertie Management Committee ("IMC”)desires that all currently existing contracts,customs,and operating policies and procedures associated with the Alaska Intertie and recognized by the Alaska Energy Authority ("AEA”)and the Intertie Operating Committee ("IOC”)shall remain in effect and shall be maintained by the IMC until such time as the IMC expressly addresses such contracts and operating policies and procedures relating to the operation of the Alaska Intertie. THEREFORE,IT IS HEREBY RESOLVED THAT: A.An Operating Committee ("IMC Operating Committee”)is established and shall take over the duties of the Intertie Operating Committee ("IOC”)with respect to the Alaska Intertie; B.All currently existing contracts associated with the operation,maintenance,and protection of the Alaska Intertie shall continue and remain in effect; C.All currently existing customs,arrangements,understandings,and operating policies and procedures involving the operation of the Alaska Intertie,including, but not limited to scheduling,maintenance,the annual budget,billing of costs and expenses,and procurement of services shall continue and remain in effect: D.The maximum Intertie transfer capability and capacity allocations of the Alaska intertie shall continue and remain in effect;and, E.The Alaska Intertie shall be operated as provided for in the Alaska intertie Agreement. The Secretary hereby certifies that this is a true and correct copy of Resolution No.11-1 and Resolution No.11-1 was approved by the IMC on November 18,2011. ¢(ieecretary INTERTIE MANAGEMENT COMMITTEE RESOLUTION No.12-1 BACKGROUND:On November 18,2011,the Intertie Management Committee ("IMC”)approved Resolution 11-1 which resolved that all then-currently existing contracts,customs,and operating policies and procedures associated with the Alaska Intertie and recognized by the Alaska Energy Authority ("AEA”)and the Intertie Operating Committee ("IOC”)were to remain in effect and be maintained by the IMC until such time as the IMC expressly addresses such contracts and operating policies and procedures relating to the operation of the Alaska Intertie (Intertie). PURPOSE:The purpose of this Resolution is to formally address and establish the reserve capacity and operating reserve responsibilities for all users of the Intertie. THEREFORE,IT IS HEREBY RESOLVED THAT: WHEREAS,the interconnected electric utilities along the Railbelt each own and operate electric utility facilities and are engaged in the business of providing capacity,energy and related services to the public;and WHEREAS,it is desirable to maintain the reliable operation of the electric power grid in order to secure the maximum benefit of these services for the public;and WHEREAS,all of the interconnected electric utilities along the Railbelt have operated and continue to operate as an interconnected electrical system since 1985 pursuant to the terms and conditions of the Reserve Capacity and Operating Reserve Responsibility Agreement;and WHEREAS,the Reserve Capacity and Operating Reserve Responsibility Agreement is a separate and independent contract by and between the Railbelt electric utilities that was made as Addendum No.1 to the Original Agreement,in order to provide for the reliable operation of the Intertie and the interconnected Railbelt electrical system;and WHEREAS,adherence to the principles and responsibilities of the Reserve Capacity And Operating Reserve Responsibility Agreement has improved the reliability of the all Railbelt electrical systems and allowed the utilities to engage in economically advantageous contracts and transactions for electrical capacity and energy;and WHEREAS,it is therefore desirable to continue to abide by these uniformly applicable standards and for the IMC to begin the development of methods and procedures for maintaining and enforcing such operating standards;and WHEREAS,pursuant to Section 3.1 of the Amended and Restated Alaska Intertie Agreement ("Intertie Agreement”),the Intertie Management Committee ("IMC”)has the delegated authority to adopt and implement operating policies and procedures,Reliability Standards for the Intertie, and enforcement processes,including sanctions and other remedies;and 41 -IMC Resolution 12-1 WHEREAS,coordination of all interconnected electric utilities and other bulk power generators and transmitters with the IMC is necessary for sustained and improved reliability of the Railbelt interconnected electrical system;and WHEREAS,the principles and responsibilities contained in the Reserve Capacity And Operating Reserve Responsibility Agreement were in effect for the planning of all major generation improvements now under development in and along the Railbelt;and WHEREAS,the IMC believes that the principles and responsibilities contained in the Reserve Capacity And Operating Reserve Responsibility Agreement constitute fundamentally sound engineering operating practices for interconnected electric utilities along the Alaska Railbelt;and WHEREAS,the IMC believes that the same engineering operating practices for interconnected electric utilities that are contained in the Reserve Capacity And Operating Reserve Responsibility Agreement will continue to assure the reliability of the all Railbelt electrical systems and will allow the interconnected electric utilities to engage in economically advantageous contracts and transactions for electrical capacity and energy ;and WHEREAS,the IMC wishes to formally adopt and reaffirm the principles and responsibilities contained in the Reserve Capacity and Operating Reserve Responsibility Agreement for use as the policies and procedures governing the reserve requirement responsibility on the Intertie BE IT RESOLVED THAT All parties generating,delivering,or receiving bulk electrical capacity and energy across the Intertie shall be obligated to comply with the reserve requirement responsibilities contained in the Reserve Capacity And Operating Reserve Responsibility Agreement for all activities associated with or relating to the use of the Intertie;and Further,let it be RESOLVED by the Intertie Management Committee that it expressly reaffirms the principles and responsibilities contained in the Reserve Agreement. The Secretary hereby certifies that this is a true and correct copy of Resolution No.12-1 and Resolution No.12-1 was approved by the IMC on September 13,2012. Brad Evang airman »aGeneNaultSecretary ey, 2-IMCR esolution 12-1 INTERTIE MANAGEMENT COMMITTEE Resolution No.13-1 Background:On November 18,2011,the Intertie Management Committee ("IMC”)approved Resolution 11-1 which resolved that all then-currently existing contracts,customs,and operating policies and procedures associated with the Alaska Intertie and recognized by the Alaska Energy Authority ('AEA')and the Intertie Operating Committee ("IOC”)were to remain in effect and be maintained by the IMC until such time as the IMC expressly addresses such contracts and operating policies and procedures relating to the operation of the Alaska Intertie (Intertie).On September 13,2012,the IMC formally addressed and establish the reserve capacity and operating reserve responsibilities for all users of the Intertie. Purpose:The purpose of this Resolution No.13-1 is to adopt system reliability and reserve criteria document dated April 4,2012 and updated June 7,2013,prepared by the Railbelt Reliability Committee (RRC)for all users of the Intertie. THEREFORE,IT IS HEREBY RESOLVED THAT: WHEREAS,the RRC has crafted reliability and reserve criteria for the Railbelt;and, WHEREAS,five of seven utilities or owners of Railbelt transmission systems have accepted the Amended and Restated Alaska Intertie Agreement dated November 18,2011,as the management protocol for the interconnected system;and, WHEREAS,Exhibit H of the Amended and Restated Alaska Intertie Agreement defines Reserve Capacity and Operating Reserve responsibilities;and, WHEREAS the current Exhibit H is a 1985 document that does not reflect current system configuration or operating protocols;and, WHEREAS the only entity establishing reliability criteria for the interconnected system is the Alaska System Coordinating Council (ASCC)that has been defunct for 15 years;and, WHEREAS the RRC-prepared document establishes reliability standards,reserve capacity and rules for operating reserves;and, WHEREAS the IMC is the entity in the interconnected system that governs,controls,operates, maintains,repairs and improves the system;and, WHEREAS the IMCis fit,willing and able to undertake and effectively accomplish the tasks identified in the aforementioned clause. Page 1 of 2-IMC Resolution 13-1 INTERTIE MANAGEMENT COMMITTEE Resolution No.13-1 (Continued) BE IT RESOLVED THAT the system reliability and reserve criteria document dated April 4, 2012 and updated June 7,2013,prepared by the RRC is hereby accepted as Exhibit H of the Amended and Restated Alaska Intertie Agreement;and, BE IT FURTHER RESOLVED THAT this resolution and the aforementioned system reliability and reserve criteria document prepared by the RRC be submitted as an informational filing to the Regulatory Commission of Alaska (RCA). The Secretary hereby certifies that this is a true and correct copy of Resolution No.13-1 and that Resolution No.13-1 was approved by the IMC on July 9,2013. AcFicth Gene Therriault,Secretary sp Bradley Evans; Page 2 of 2--IMC Resolution 13-1 INTERTIE MANAGEMENT COMMITTEE Resolution No.13-1 (Continued) BE IT RESOLVED THAT the system reliability and reserve criteria document dated April 4, 2012 and updated June 7,2013,prepared by the RRC is hereby accepted as Exhibit H of the Amended and Restated Alaska Intertie Agreement;and, BE IT FURTHER RESOLVED THAT this resolution and the aforementioned system reliability and reserve criteria document prepared by the RRC be submitted as an informational filing to the Regulatory Commission of Alaska (RCA). The Secretary hereby certifies that this is a true and correct copy of Resolution No.13-1 and that Resolution No.13-1 was approved by the IMC on July 9,2013. Rye bhen JabA.-='\Bradley evass edbirman Gene Therriault,Secretary Editor's Note: Resolution 13-1 was not approved by the affirmative vote of the Alaska Energy Authority. Therefore,pursuant to Section 3.1 of the Amended and Restated Alaska Intertie Agreement, IMC approval of Resolution 13-1 did not adopt the Reliability Standards and enforcement processes,including sanctions and other remedies,respecting the Alaska Intertie assets and agreement.IMC approval of Resolution 13-1 did adopt the operating policies and procedures respecting the Alaska Intertie assets and agreement. Page 2 of 2-IMC Resolution 13-1 INTERTIE MANAGEMENT COMMITTEE Resolution No.13-2 WHEREAS,Section 3.1 of the Amended and Restated Alaska Intertie Agreement provides that the Intertie Management Committee ("IMC”)shall determine Reserve Capacity and Operating Reserves for the Intertie,and the IMC has the authority to adopt operating policies and procedures,reliability standards,and enforcement mechanisms,for the Intertie. WHEREAS,on November 18,2011,the Intertie Management Committee ("IMC”)approved Resolution 11-1 which resolved that all then-currently existing contracts,customs,and operating policies and procedures associated with the Alaska Intertie and recognized by the Alaska Energy Authority ("AEA”)and the Intertie Operating Committee ("IOC”)were to remain in effect and be maintained by the IMC until such time as the IMC expressly addresses such contracts and operating policies and procedures relating to the operation of the Alaska Intertie (Intertie). WHEREAS,on September 13,2012,the IMC formally addressed and establish the Reserve Capacity and Operating Reserve responsibilities for all users of the Intertie by adopting Exhibit H of the Amended and Restated Alaska Intertie Agreement,but Exhibit H is a 1985 document that does not reflect the current configuration of the Railbelt system nor current operating protocols. WHEREAS,it is in the best interests of the Railbelt system to establish operating standards and reliability criteria applicable to the entire interconnected Railbelt system,and to have those standards and criteria apply to the Intertie,rather than to adopt standards and criteria solely for the Intertie. WHEREAS,the only entity that has established reliability criteria for the interconnected Railbelt system is the Alaska System Coordinating Council (ASCC)that has been defunct for 15 years. WHEREAS,in 2005 the Railbelt Utilities formed the "Ad-Hoc Railbelt Reliability Committee ("RRC”),to work with the Alaska Energy Authority ("AEA)in an open public process to review the substantial NERC operating,reserve capacity,and reliability standards,and to adapt those standards to meet Railbelt conditions and practices. WHEREAS,the RRC-prepared the "Intertie Management Committee's Railbelt Operating and Reliability Standards,updated June 7,2013.” WHEREAS,the IMC is the entity with authority to adopt policies,criteria and standards for the Intertie related to reserve capacity,operating reserves,operating policies,reliability,and enforcement mechanisms. WHEREAS,the IMC is willing to work with other interested parties to establish and implement Railbelt wide policies,criteria and standards related to reserve capacity,operating reserves, operating policies,reliability,and enforcement mechanisms. WHEREAS,the purpose of this Resolution No.13-2 is to adopt the "Intertie Management Committee's Railbelt Operating and Reliability Standards,updated June 7,2013”as a guideline INTERTIE MANAGEMENT COMMITTEE Resolution No.13-2 (Continued) for the IMC working with other interested parties to establish and implement Railbelt wide policies,criteria and standards related to reserve capacity,operating reserves,operating policies,reliability,and enforcement mechanisms. WHEREAS,to ensure that the Intertie and the Railbelt system have the same criteria and standards applied related to reserve capacity,operating reserves,operating policies,reliability, and enforcement mechanisms,this Resolution shall sunset on July 9,2014 unless extended by the IMC to allow for monitoring of progress,and the "sanctions”enforcement mechanisms shall not become effective until separately approved by the IMC. BE IT RESOLVED THAT the "Intertie Management Committee's Railbelt Operating and Reliability Standards,updated June 7,2013.”prepared by the RRC is hereby accepted as the Reserve Capacity and Operating Reserves for the Intertie,Exhibit H of the Amended and Restated Alaska Intertie Agreement,and is accepted as the operating policies and procedures, reliability standards,and enforcement mechanisms,for the Intertie,with two modifications. First,this resolution shall sunset on July 9,2014 unless extended by the IMC to enable the IMC to monitor progress on establishing Railbelt system wide standards and criteria and ensure uniformity with Intertie standards and criteria.If the sunset is implemented, the currently existing Exhibit H and standards and criteria for reserve capacity,operating reserves,operating policies,reliability,and enforcement mechanisms shall become effective. Second,the "sanctions”portions of the enforcement mechanisms in the "Intertie Management Committee's Railbelt Operating and Reliability Standards,updated June 7, 2013”shall not become effective until separately approved by the IMC. BE IT FURTHER RESOLVED THAT this resolution and the "Intertie Management Committee's Railbelt Operating and Reliability Standards,updated June 7,2013.”prepared by the RRC shall be submitted as an informational filing to the Regulatory Commission of Alaska (RCA). The Secretary hereby certifies that this is a true and correct copy of Resolution No.13-2 and Resolution No.13-2 was approved by the IMC on July 9,2013. Baeblou 2 At_Bedloy Case (2 4 AA LtealIwNT Bradley E ,Chairman Gene Therriault,SecretaryA.Page 2 of 2 -IMC Resolution 13-2 INTERTIE MANAGEMENT COMMITTEE Resolution No.13-3 WHEREAS,Article 3 and Article 9 of the Alaska Intertie Agreement,dated December 23,1985 (1985 Agreement),provided that the Intertie Operating Committee (IOC)would be responsible for operating the interconnected Railbelt system and for developing operating procedures and standards practices with respect to such operations.The Intertie Management Committee (IMC)has assumed these responsibilities under the Amended and Restated Alaska Intertie Agreement,dated November 18,2011 (2011 Amended Agreement).Further,that through Addendum No.1 to the 1985 Agreement entitled "Reserve Capacity and Operating Reserve Responsibility”(incorporated as Exhibit H of the 2011 Amended Agreement)the Utility Participants of that agreement would be responsible for reserve requirements for the interconnected system;and WHEREAS,the IMC (and previously the IOC)has been the de-facto Railbelt reliability coordinator for the Railbelt interconnection for over 25 years;and WHEREAS,the IMC (and previously the 1OC)has been the asset manager and operator of the Alaska Intertie Assets for over 25 years;and WHEREAS,Section 3.1 of the 2011 Amended Agreement provides that the IMC shall determine Reserve Capacity and Operating Reserves for the Intertie,and the IMC has the authority to adopt operating policies and procedures,reliability standards,and enforcement mechanisms,for the Intertie;and WHEREAS,on July 9,2013,the IMC passed Resolution No.13-1 without the affirmative vote of the Alaska Energy Authority (AEA)and passed Resolution No.13-2 with the affirmative vote of the AEA,each Resolution regarding the "Intertie Management Committee's Railbelt Operating and Reliability Standards,updated June 7,2013”("June 7,2013 Standards”);and WHEREAS,IMC passage of Resolution 13-1 without the affirmative vote of AEA adopted the June 7,2013 Standards as the operating policies and procedures for the Alaska Intertie assets,but did not adopt the Reliability Standards and enforcement processes for the Alaska Intertie assets; WHEREAS,IMC passage of Resolution 13-1 without the affirmative vote of AEA adopted the June 7,2013 Standards as the operating policies and procedures,Reliability Standards,and enforcement processes for the Railbelt interconnected system,exclusive of the Alaska Intertie assets;and WHEREAS,IMC passage of Resolution 13-2 with the affirmative vote of AEA accepted the June 7,2013 Standards,as the Reserve Capacity and Operating Reserves for the Intertie,Exhibit H of the 2011 Amended Agreement,and accepted as the operating policies and procedures,reliability standards,and enforcement mechanisms,for the Intertie,with two modifications.Resolution 13-2 incorporates a July 9,2014 sunset and a requirement that the "sanctions”portions of the enforcement mechanisms in the document shall not become effective until separately approved by the IMC;and WHEREAS,the IMC believes that the Reliability Standards and enforcement processes,including sanctions and other remedies that are the subject of Resolution 13-1 and 13-2,are a critical component of the conditions of joint use and interconnection of electric utilities in the Railbelt;and WHEREAS,the IMC further believes that the public convenience and necessity would be served by formal adoption of these standards for the interconnected electric utilities of the Railbelt;and WHEREAS,the IMC further believes that the Regulatory Commission of Alaska (RCA)may,under AS 42.05.1414,"...do all things necessary or proper to carry out the purposes and exercise the powers expressly granted or reasonably implied in...”AS 42.05;and WHEREAS,the IMC further believes that the Regulatory Commission of Alaska (RCA)has authority under AS 42.05.321 to resolve disputes between interconnecting utilities regarding the conditions of joint use and interconnection of those utilities and further to determine the terms,conditions and compensation for that interconnection; NOW,THEREFORE, BE IT RESOLVED THAT the IMC repeals Resolutions 13-1 and 13-2. BE IT FURTHER RESOLVED that the IMC adopts the "Intertie Management Committee's Railbelt Operating and Reliability Standards,updated October 1,2013,”as the Reserve Capacity and Operating Reserves for the Intertie,Exhibit H of the 2011 Amended Agreement,and as the operating policies and procedures,reliability standards,and enforcement mechanisms,with one modification made at the request of the Alaska Energy Authority respecting the Alaska Intertie assets and 2011 Amended Agreement: The "sanctions”portions of the enforcement mechanisms in the "Intertie Management Committee's Railbelt Operating and Reliability Standards,updated October 1,2013,” shall not become effective for purposes respecting the Alaska Intertie assets and 2011 Amended Agreement until separately approved by the IMC. BE IT FURTHER RESOLVED that the Utility Participants of the IMC adopt the "sanctions”portions of the enforcement mechanisms in the "Intertie Management Committee's Railbelt Operating and Reliability Standards,updated October 1,2013,”for purposes respecting the interconnected Railbelt electric utilities,excluding the Alaska Intertie assets and 2011 Amended Agreement;and BE IT FURTHER RESOLVED THAT this Resolution and the "Intertie Management Committee's Railbelt Operating and Reliability Standards,updated October 1,2013”shall be submitted as an informational filing to the Regulatory Commission of Alaska (RCA). BE IT FURTHER RESOLVED that the IMC shall request that the RCA exercise the authority granted to it under AS 42.05.321 and other applicable authority and to enter an order 1.Finding that the approval of these standards will serve the public convenience and necessity; 2.Formally approving the standards and finding that they are just and reasonable;and 3.Providing for mechanisms and processes for periodic review of the standards. Bradley Eva hairman Gene Therriault,Secretary Page 2 of 2 -IMC Resolution 13-3 INTERTIE MANAGEMENT COMMITTEE Resolution 14-01 ORGANIZATIONAL STRUCTURE OF THE IMC WHEREAS,the State of Alaska funded and the Alaska Energy Authority ('AEA')constructed the Alaska Intertie and made these electrical transmission facilities available to the Utility Participants under the Original Intertie Agreement for Capacity and Energy transactions to benefit Railbelt customers,ensure delivery of energy from State-owned projects,and improve reliability and economical Capacity and Energy deliveries to the Utility participants'customers under the former Alaska Energy Program established by former AS 44.83.380;and WHEREAS,the Utility participants entered into the Original Agreement to improve the reliability of their interconnected electrical systems and engage in transactions for electrical Capacity and Energy with each other under individual contractual arrangements between the Participants using the Intertie;and WHEREAS,the Intertie interconnected the Railbelt electric utility systems so that they operate in electrical synchronism;and WHEREAS,AEA and the Utility participants desired to establish the Intertie Management Committee ("IMC”)and provide it with primary responsibility for the governance,control, operation,maintenance,repair,and improvement of the Intertie;and WHEREAS,the IMC commensurately took on the responsibility for governing Railbelt reliability and operational matters.Further developed standards for conduct,operations,energy accounting load balancing area responsibilities,load balancing boundaries,custody transfer protocols and operational and planning reserves.Further the IMC has performed these duties since 1985;and WHEREAS,the IMC is the only Organization that has been reviewed and audited by NERC;and WHEREAS,the IMC is the only recognized Reliability council in the Railbelt;and WHEREAS,all rules and standards have been mutually agreed too;and WHEREAS,the IMC has lead and directed system improvements across the Railbelt system relating to spinning reserves,reliability standards under frequency load shed schedules and protective relay issues;and WHEREAS,the IMC created procedures for monitoring compliance to spinning reserves and reliability standards;and WHEREAS,the IMC has negated the Railbelt 's first open access language with the State of Alaska for a non-utility;and WHEREAS,the Railbelt needs for expansion of IMC oversight has grown;and WHEREAS,the IMC has taken on the above roles in addition to performing the duties of asset manager for the Alaskan Intertie;and NOW,THEREFORE, BE IT RESOLVED,the IMC approves the organizational structure as distributed and the narrative briefly outlining the functional description of the structure. Dated at Anchorage,Alaska,this 16"day of January,2014 Secretary” Resolution 14-01 Organizational Structure of the IMC Railbelt IMC Organizational Structure :Intertie Management '"Committee cheMO)a -_c -----:Standards |*Intertie Operating io on lin '.-|Tariffs and RegulatoryCommitteeCommitteeetc°||Affairs Committee »ae CO oe Seta!Affairs Committee .7 eee .:ommittee ieeoerenmnannd a a a aE . 2 .Machine Ratings -Operations,':;"Dispatch and.-Budi t md ngineering,Rela Subcommittee .Maintenance and System Operationg Ben :and Reliability mo "Subcommittee 7 we»«.Scheduling *Subcommittee oreee Subcommittee |.Subcommittee cops aiken Ea 7 oon SE a .) -SCADA andSystemStudiesane©Y TelecommunicationsSubcommittee©Dye, Cumerraor:'=Subcommittee”wl vel and Pigte voltbonsysmseeals December 18,2013 Intertie Management Committee Committee and Subcommittee Functional Descriptions Intertie Management Committee (IMC) As defined in section 8 of the Amended and Restated Alaska Intertie Agreement (ARAIA) Standards Committee Reports to:The IMC Responsible for developing,updating and maintaining Railbelt reliability and planning standards. Intertie Operating Committee Reports to:The IMC Responsible for duties assigned under section 9 of the ARAIA including managing projects related to the Alaska Intertie.Additionally,the committee is responsible for general operational oversight of Railbelt regional reliability;and,for study and resolution of interconnection issues and supervision of the various IOC subcommittees. Standards Compliance Committee Reports to:The IMC The Standards Compliance committee is responsible for evaluation and reporting to the IMC on interconnected utility compliance with Railbelt reliability operating and planning standards. Tariffs and Regulatory Affairs Committee Reports to:The IMC Responsible for IMC submissions to the Regulatory Commission of Alaska (RCA),and managing the regulatory relationships of the IMC. Machine Ratings Subcommittee Reports to:The IOC Responsible for maintaining the database of generator and turbine nameplate data,managing projects related to machine integration into the Railbelt,machine performance testing and data acquisition,and for determination and procedural implementation the Largest Single Generating Contingency for each participant and the Grid as it is defined in and relates to AK RES 001 and Exhibit H of the ARAIA. Operations,Maintenance and Scheduling Subcommittee Reports to:The IOC The Operating Maintenance and Scheduling Subcommittee of the IOC is responsible for scheduling of outages for the intertie as well as coordination and updates to the Railbelt-wide Transmission and Generation maintenance schedule.The subcommittee is responsible for oversight of projects related to inspection and repair of the intertie and its related assets. IMC Committee/Subcommittee descriptions January 16,2014 Page 2 Dispatch and System Operations Subcommittee Reports to:The IOC The Dispatch and System Operations Subcommittee is made up of the Northern and Southern Controllers of the Intertie and the chief dispatchers of the Signatory LBA's.The subcommittee approves the Maintenance subcommittee's proposed annual maintenance related outage schedule.This subcommittee is charged maintaining energy accounting procedures,and for the intertie,oversight of disturbance analysis and reporting,maintaining the Railbelt system disturbance database.The subcommittee also organizes system operator training and control area reviews and develops the prospective annual Intertie usage forecast for use by the budget subcommittee in developing the annual intertie budget. Budget Subcommittee Reports to:The IOC The Budget Subcommittee develops the annual budget for Intertie including funding of special projects outside normal operations the subcommittee also reconcile actual usage to budgeted usage and determines the true-up amounts. Engineering,Relay,and Reliability Subcommittee Reports to:The IOC This committee is charged with oversight of the maintenance and operation of the protective relay systems used on the Intertie,Working in concert with the System Studies Subcommittee this subcommittee directs studies and recommend changes related to system the system from a System Protection perspective.These include under frequency loadshed,interconnection,area out-of step protection and Shed in Lieu of spin (SILOS)systems. System Studies Subcommittee Reports to:The IOC This subcommittee is charged with maintaining the Railbelt PSS/E database and with performing studies in support of analysis of system plans and post event system disturbances analysis. SCADA and Telecommunications Subcommittee Reports to:The IOC This committee has oversight over SCADA integration on the Railbelt and operations and maintenance of the telecommunications systems used for protection and SCADA on the Intertie. INTERTIE MANAGEMENT COMMITTEE Resolution No.2014-02 Allocation of Intertie Costs WHEREAS,the Amended and Restated Alaska Intertie Agreement dated,November 18,2011 ("Amended AIA”),established the Intertie Management Committee ("IMC”)and provided the IMC with primary responsibility for the governance,control,operation,maintenance,repair,and improvement of the Alaska Intertie;and WHEREAS,pursuant to that authority,the IMC has also adopted operating policies and procedures,and reliability standards for the Alaska Intertie;and, WHEREAS,pursuant to that authority,the IMC has also moved forward with the adoption of Open Access policies for the Alaska Intertie;and, WHEREAS,the IMC acknowledges that there may be circumstances in the future under which the IMC incurs capital,consulting,and other identifiable costs and expenses directly associated with maintaining and operating the Alaska Intertie under its Open Access policies,its operating policies and procedures,and reliability standards;and, WHEREAS,the IMC acknowledges that the cost allocation methodology contained in Amended AIA does not properly capture and allocate the costs among the Participants and User of the Alaska Intertie that are incurred in maintaining and operating the Alaska Intertie under the new Open Access policies,operating policies and procedures,and reliability standards;and, WHEREAS,the IMC wishes to amend the manner which the Intertie Costs are allocated by and between the Participants and Users of the Alaska Intertie to better align the cost and benefits received by the Participants and Users of the Alaska Intertie under the circumstances where Open Access policies,operating policies and procedures,and reliability standards are in place. NOW,THEREFORE, BE IT RESOLVED THAT the IMC has determined that the manner which the Intertie Costs are allocated by and between the Participants and Users of the Alaska Intertie shall be changed to better align the cost and benefits received by the Participants and Users of the Alaska Intertie BE IT RESOLVED ALSO THAT,the costs incurred for the governance,control,operation, maintenance,repair,and improvement of the Alaska Intertie should be categorized as either Intertie Operating Costs or Intertie Administration Costs;and, BE IT RESOLVED ALSO THAT,the Intertie Operating Costs shall continue to include the costs set forth in Section 7.1.1 Cost to Be Shared by Participants and Users of the Amended AIA;and, BE IT RESOLVED ALSO THAT,the Intertie Administration Costs shall include costs incurred in administering the legal and regulatory affairs of the IMC,the costs associated with the development,monitoring,and administration of the operating and reliability standards and the Alaska Energy Authority's ("AEA”)administrative expense associated with the Alaska Intertie; and, BE IT RESOLVED ALSO THAT,the Intertie Operating Costs shall continue to be allocated as set forth in Article 7 of the Amended AIA;and, BE IT RESOLVED ALSO THAT,the Intertie Administration Costs shall be allocated in equal shares for all Participants and Users;and, BE IT RESOLVED ALSO THAT,all Participants and Users are obligated to pay their respective share of annual Intertie Costs (i.e.,Intertie Operating Costs and Intertie Administration Costs) irrespective of the amount or length of use of the Alaska Intertie and any excess amounts paid or deficiencies needed to be funded will be handled in accordance with the provisions of Section 7.3 Allocation of Intertie Costs,of the Amended AIA;and, BE IT RESOLVED ALSO THAT,the changes contemplated by this Resolution 2014-02 be made effective with the beginning of the current fiscal year,July 1,2013;and, BE IT RESOLVED ALSO THAT,the attorney for the IMC is directed to work with the attorney for AEA to prepare the appropriate amendments to the Amended AIA. Dated this 11th day of February,2014. Brerbla Sane (x waltBradleySens,Ohairman Gene Thefriault,Secretary 2014-02 Cost Allocation Intertie Management Committee Resolution No.17-1 Approval of the Douglas Substation Improvements,Utility Memorandum of Agreement for 2016 Douglas Substation Improvements (MOA),and Final Design and Budget for Improvements WHEREAS,Matanuska Electric Association,Inc.(MEA)has proposed certain upgrades and modifications to the Douglas Substation,including the manufacture and installation of a new Control Enclosure ("Improvements”)and the Intertie Management Committee (IMC)has determined that these Improvements are necessary to provide for the continued safe,reliable, and economical operation of the Alaska Intertie. WHEREAS,the proposed MOA (attached)provides for the Alaska Energy Authority (AEA) to procure and deliver the Control Enclosure and MEA to provide for the construction activities at Douglas Substation necessary for installation and operation of the Control Enclosure.The proposed scope of work and estimated project cost is further reflected in the Final Design (circulated by MEA)and the Engineer's Budgetary Estimate Summary,respectively.The MOA includes a Lease which provides for the right to access and use the footprint of the Control Enclosure within the Douglas Substation for 45 years.See Appendix B to MOA. WHEREAS,the 1984 Douglas Substation Agreement allows AEA and the IMC to use assets within the Douglas Substation needed to transmit power over the Alaska Intertie.The 1984 Douglas Substation Agreement will expire in 2019 unless extended.In the event the 1984 Douglas Substation Agreement expires prior to being amended,or is otherwise terminated,MEA has offered to provide reasonable access to AEA and the IMC to the equipment which AEA retains ownership of following expiration of the 1984 Douglas Substation Agreement for purposes of operating and maintaining the equipment consisting of Items Nos.3,5,7 and 20 (if necessary) listed on Attachment C,Douglas Substation Improvements,to the1984 Douglas Substation Agreement in the in the MOA and Lease attached thereto. NOW,THEREFORE,IT IS RESOLVED THAT: SECTION 1.The IMC approves the MOA and its Appendices attached to this Resolution. SECTION 2.The IMC approves Final Design (earlier circulated by MEA)and the Engineer's Budgetary Estimate Summary that was reviewed and approved by the Intertie Operating Committee for the Douglas Substation Upgrade Project (See Appendix C of the MOA). Page 1 of 2 -Intertie Management Committee Resolution No.17-1 2/17/17 SECTION 3.Given MEA will provide reasonable access to AEA and the IMC to the equipment which AEA retains ownership of following expiration of the 1984 Douglas Substation Agreement,the IMC Participants will assume all risks associated with future negotiations with MEA regarding the 1984 Douglas Substation Agreement. SECTION 4.AEA will provide State monies covering the costs of the Control Enclosure and MEA and the IMC shall be responsible for the remaining costs associated with the Improvements,including any cost overruns. SECTION 5.The responsibility for the costs of the Improvements including any Cost Overruns (i.e.,any costs over the amounts advanced by AEA from State monies)shall be allocated as set forth in the attached Engineer's Budgetary Estimate Summary (See Appendix C to the MOA).Consequently,if Control!Enclosure costs exceed $713,120 or exceed the amount of funding available from appropriated funds,the excess costs shall be paid by MEA (to the extent such costs are allocable to distribution)and by the IMC (to the extent such costs are allocable to transmission).Any cost greater than twenty-five percent (25%)("Cost Overruns”)shall be immediately brought by MEA to the IMC for review,consideration,and allocation. SECTION 6.In accordance with Section 6.4.3 of the Second Amended and Restated Alaska Intertie Agreement,IMC Participants (including MEA)shall pay equal shares of the cost of the Improvements allocated to the IMC. Dated at Anchorage,Alaska,this 17'"day of February,2017. Chair Page 2 of 2 -Intertie Management Committee Resolution No.17-1 2/17/17 UTILITY MEMORANDUM OF AGREEMENT FOR 2016 DOUGLAS SUBSTATION IMPROVEMENTS THIS UTILITY MEMORANDUM OF AGREEMENT ("MOA”),dated February 17,2017,is entered by and between the ALASKA ENERGY AUTHORITY ("AEA”)and MATANUSKA ELECTRIC ASSOCIATION,INC.("MEA”),and the Intertie Management Committee ("IMC”)on behalf of the Railbelt Utilities for a required upgrade of components at the Douglas Substation in Willow,AK.The upgrades consist of the procurement and installation of a relay contro!enclosure ("Control Enclosure”)and related work as set forth in Appendix A of this MOA ("Project”)to be completed under this Agreement. RECITALS WHEREAS,in the 1984 Douglas Substation Agreement,MEA allowed AEA to design and construct certain additions and modifications to the Douglas Substation in order to implement the Anchorage-Fairbanks Intertie Project ("Alaska Intertie”),and some of those components now need replacement at the Douglas Substation;and WHEREAS,the additions and modifications to the Douglas Substation contemplated as part of the "Project”addressed in these documents are contemplated to provide continuous operations for the benefit of the Alaska Intertie;and WHEREAS,the Alaska Intertie Agreement was amended and restated in April 2014 ("Second Amended Alaska Intertie Agreement”),and provides the IMC with certain management duties and authorities over the Alaska Intertie;and WHEREAS,Section 6.4 of the Second Amended Alaska Intertie Agreement provides for the IMC to approve certain modifications,additions,deletions,and changes to the Alaska Intertie ("Improvements”);and WHEREAS,the IMC has determined that the Douglas Substation must have certain upgrades and modifications made to it to ensure continued safe,reliable,and economical operation of the Alaska Intertie;and WHEREAS,MEA's engineer for the Project,Engineered Power Systems,Inc.("EPS”), has determined that there are significant technical and safety concerns with the existing Control Enclosure to warrant its replacement;and WHEREAS,AEA agrees that replacement of the Control Enclosure and related project costs are required for the Alaska Intertie and therefore,on behalf of the IMC,AEA agrees to contribute funds for the replacement of the Control Enclosure;and Utility MOA -Douglas Substation UpgradesFebruary\)_,2017 Page 2 of 7 WHEREAS,this Project is an upgrade of existing facilities only,and the construction and installation of the Control Enclosure do not in any way alter the ownership,operation,or maintenance responsibilities as they existed prior to the Project;and WHEREAS,coincident with the Parties entering this MOA,MEA is entering the lease set forth in Appendix B of this MOA to lease to AEA a portion of the Douglas Substation the size of the footprint of the Control Enclosure;and WHEREAS,in the event the 1984 Douglas Substation Agreement expires prior to being amended,or is otherwise terminated,MEA shall provide reasonable access to AEA and the IMC to the equipment which AEA retains ownership of following expiration of the 1984 Douglas Substation Agreement;and WHEREAS,based on EPS'cost estimate for the Douglas Substation Control Enclosure replacement and the Intertie Operating Committee ("IOC”-a subcommittee of the IMC) discussions regarding the benefits of the Project,the |OC has proposed and MEA and the IMC have accepted that the costs of the Project will be paid by AEA,MEA,and the IMC in accordance with Appendix C of this MOA;and WHEREAS,AEA has authorized funding for its portion of the costs of the Project as an Intertie Cost from an appropriation made in sec.78(c),ch.1,SSSLA 2002 as re-appropriated in sec.69,ch.29,SLA 2008,with additional funding,if any,limited to additional amounts allocated by AEA from an appropriation or approved by the IMC and assessed to the Alaska Intertie users. AGREEMENT NOW,THEREFORE,it is agreed as follows: ARTICLE | Section 1.The construction contracts and all other maps,drawings,plans and specifications,contract forms,addenda,estimates,studies and other documents to be prepared for the Project shall conform to applicable standard specifications and all applicable IMC utility practices and industry standards. ARTICLE II Section 1.Subject to funding limitations,AEA shall procure the Control Enclosure and components as identified in Appendix A.This is the sole financial obligation of AEA under the terms of this agreement. Section 2.MEA shall perform the following: A.MEA shall design,install,provide project management,and commission the Control Enclosure,including participating in scheduled outages and testing,as listed in Appendix A. Utility MOA -Douglas Substation UpgradesFebruary_2,2017 Page 3 of 7 B.MEA,as project manager ("PM”),shall periodically provide the IMC and AEA with an opportunity to review the project design.These reviews shall,at a minimum, include: e Communication Design Concept e Protection Design Concept e 80%relay enclosure design The IMC and AEA will have approval authority of the final designs for the Project. See Appendix C for the Project layout design. MEA will provide off-site inspection of the Control Enclosure,prior to shipping the equipment from the manufacturer to assure that all components are included and that factory tests have been completed.Offsite inspections shall be paid for by the IMC.MEA will also inspect all materials and the workmanship incorporated into commissioning the Project for compliance with the specifications and for project completeness. MEA will take custody of the Control Enclosure from the manufacturer after the Control Enclosure arrives at the Douglas Substation,is placed on its foundation and has been unpackaged and assembled by the manufacturer's representative. MEA shall provide AEA and the IMC with written documentation of the transfer of custody from the manufacturer. MEA will obtain all necessary permits which are required for the Project and for MEA's operation and maintenance of the Douglas Substation. MEA will provide final as-built drawings to AEA and IMC. MEA will provide representatives of AEA and other IMC members with reasonable notice of the date,time,and place of all acceptance tests or inspections. MEA shall cause the construction contracts and all other maps,drawings,plans and specifications,contract forms,addenda,estimates,studies and other documents to be prepared for the Project to conform to the applicable standard specifications and all applicable IMC utility practices and industry standards, including but not limited to the applicable Railbelt Reliability Standards. Section 3.Project Cost Responsibility. A."Project Costs”shall be allocated and generally assigned as provided by the IOC and set forth in the Appendix C to this MOA. B.Subject to funding limitations,AEA shall pay from appropriated funds the cost of procuring the Control Enclosure up to $713,120.If Control Enclosure costs exceed $713,120 or exceed the amount of funding available from appropriated funds,the excess costs shall be paid by MEA (to the extent such costs are allocable to distribution)and by the IMC (to Utility MOA -Douglas Substation UpgradesFebruary_'7_,2017 Page 4 of 7 the extent such costs are allocable to transmission)as generally set forth in Appendix C to this MOA.Any cost greater than twenty-five percent (25%)("Cost Overruns”)shall be immediately brought to the IMC for review and allocation. Section 4.Throughout the term of this Agreement,AEA,payable solely as an operating cost under Sections 7 and 8 of the Second Amended and Restated Alaska Intertie Agreement,shall be liable to MEA for incremental costs incurred by MEA solely because of unscheduled outages or damages resulting from the negligence of AEA's contractors or personnel as related to activities under this Agreement.Such costs shall include overtime pay,contractor fees,and foregone income (cash revenue less cash expenditures)solely and directly related to such negligence,if any.In no event,shall AEA be liable for any claims from third parties or MEA consumers for damages resulting from such unscheduled outages.However,nothing in this section shall relieve AEA from its obligation to indemnify MEA from the negligence of AEA,the IMC,or their contractor related to the Project as defined in Article III,Section 3. Section 5.As PM,MEA will assign personnel to act as the project manager.The MEA project manager will ensure work by MEA or its contractor is being performed in a safe and cost- effective manner and as prescribed by applicable utility practices and regulations.The PM shall have dual authority to act on behalf of MEA and the IMC for matters relating to construction activities within the substation site,and shall become the sole MEA point-of-contact for such matters.The MEA project manager will control the manner or scheduling of the work which relies on the complete cooperation of AEA's Control Enclosure contractor(s). Section 6.As PM,MEA shall oversee the design of all relaying,communications and metering equipment.The installed equipment shall be compatible with MEA and IMC operations and the other utility users of the facility. Section 7.MEA shall provide a lease to AEA for the Control Enclosure within the footprint of the existing Douglas Substation and on MEA owned property.See Appendix B.In the event the 1984 Douglas Substation Agreement expires prior to being amended,or is otherwise terminated,MEA shall also provide reasonable access to AEA and the IMC to the equipment which AEA retains ownership of following expiration of the 1984 Douglas Substation Agreement for purposes of operating and maintaining the equipment consisting of Items Nos.3,5,7 and 20 (if necessary)listed on Attachment C,Douglas Substation Improvements,to the1984 Douglas Substation Agreement. ARTICLE Ill Section 1.As PM,MEA may inspect all materials and the workmanship incorporated into the Project.Any such inspection by MEA does not in any way subject MEA to liability for final design of the Project as approved by the IMC and AEA in Resolution No.17-1.MEA will hire EPS to design and commission the control equipment on behalf of AEA and the IMC.EPS commissioning charges are a Project cost to be paid by MEA and the IMC in accordance with the methodology set forth in Appendix C to this MOA.above.IMC and AEA have the right to review Utility MOA -Douglas Substation UpgradesFebruary{7,2017 Page 5 of 7 and comment on the design and determine the final design for the transmission components of the Control Enclosure. Section 2.During the Project,AEA and the IMC reserve the right to perform necessary operations and maintenance of the Intertie by reasonable methods in cooperation with the requirements in Article 10 of the Second Amended Alaska Intertie Agreement. Section 3.AEA,payable solely as an operating cost under Sections 7 and 8 of the Amended and Restated Alaska Intertie Agreement,shall indemnify,defend,and hold harmless MEA,its officers and employees,from and against all suits,actions,or claims of any type brought by a third party against MEA because of any injuries or damage received or sustained by any person,persons,or property because of the negligent,reckless,or intentional action or omission of AEA,the IMC,or their contractor,related to the Project. MEA shall indemnify,defend,and hold harmless AEA,the IMC,the IMC Participants,and their officers and employees,from and against all suits,actions,or claims of any type brought by a third-party because of any injuries or damage received or sustained by any person,persons,or property because of the negligent,reckless,or intentional action or omission of MEA or its contractors related to the Project. Section 4.Representatives of MEA and other IMC members will be provided with reasonable notice of the date,time and place of all acceptance tests or inspections,and a representative of MEA shall attend all such test and/or inspections.All parties will be provided reasonable notice of scheduled outages related to the Project. ARTICLE IV Section 1.It is specifically agreed between the parties executing this Agreement that it is not intended by any of the provisions of any part of the Agreement to create in the public or any member thereof a third-party beneficiary relationship hereunder,or to authorize anyone not a party to this Agreement to maintain a suit for personal injuries or property damage pursuant to the terms or provisions of this Agreement. Section 2.This Agreement represents the entire agreement between the parties concerning the Project.The parties agree that all other agreements,written or oral,concerning this portion of the Project are merged into this Agreement. Section 3.This Agreement may be modified only in writing which must be signed by the appropriate officers of each party to this Agreement. Section 4.Nothing in this Agreement shall be interpreted to make AEA the agent of MEA or MEA the agent of the AEA. Utility MOA -Douglas Substation Upgrades February (7),2017 Page 6 of 7 IN WITNESS WHEREOF,the undersigned representatives have caused this MOA to be executed by their duly authorized officers or representatives as of the date first above written. This MOA may be executed in counterparts each of which shall be an original,and all of which shall be merged into this Agreement. DATED this wi day of February ,20.17,at Anchorage,Alaska. ALASKA ENERGY AUTHORITY STATE OF ALASKA THIRD JUDICIAL DISTRICT The foregoing Agreement was acknowledged before me this (7 day of FebrAOty20.177,by Mack Wearrers ,the Chi ef Opareabung,Oca of theAlaskaEnergyAuthority,an Alaskan corporation,on behalf of the corporation SW Notary Public in and for Alaska "WEBS wo . :oe My commission expires:with office pr"y my,*ea OE Ne ws"ay Slon expire._Wvaneaseee™ Utility MOA -Douglas Substation Upgrades February _U?_,2017 Page7of7 DATED this___{7 day of _Fedpruary __,2017,at Palmer,Alaska. MATANUSKA EL&CTRIC ASSOCIATION,INC. By:ts:s_|CA Gererene AUYAGER. STATE OF ALASKA day of February , THIRD JUDICIAL DISTRICT The foregoing Agreement was acknowledged before me this \] ofTonyL27DtheC2,Cinewcet Manages20(|,by : Gyic Association,Inc.,an Alaskan corporation,on behalf of the corporation.«ee 'ven Seth Notary Public in and for Alaska FNM,,F-.**e,S 4 My commission expires:_UW Un afc C_ "By,"eoeegns®"= Arana eh? 'a day of _Febrira ry.20(7 ,at Anchorage,Alaska.DATED this INTERTIE MANAGEMENT COMMITTEE - AWe Chai By: Its: STATE OF ALASKA February . of the THIRD JUDICIAL DISTRICT The foregoing Agreement was acknowledged before me this \l day of 2011,by Mack Dolaeton _..the Chaic praTwrawgTERNWESIntertieManagementCommittee,on behalf of the committee.\Moy,!-SWoe bein £.ete Oy,Notary Public i and for'MGAe,®4 =oneMycommissionexpires:A)oh Of ce 1,%aNNay,Sxpires ¥YSWuaaaasen®™ Appendix A to Utility MOA -Douglas Substation Upgrades February 1,2017 Page 1 of 1 APPENDIX A TO UTILITY MEMORANDUM OF AGREEMENT FOR 2016 DOUGLAS SUBSTATION IMPROVEMENTS Scope of Supply-Responsibilities By Alaska Energy Authority: e Relay Enclosure F.O.B.the foundation. ° [e) [e) oO Structure including but not limited to: »HVAC »Lighting »DC Plant Delivery,setting on the foundation and unpacking of the control enclosure is by the control enclosure vendor,per the contract specifications. Protective relaying equipment acceptable to all users. Communication equipment acceptable to all users. Recording and metering devices/equipment. By Matanuska Electric Association: e Pre-shipping inspection of the Control Enclosure. e Cable Trench e Reassembly of the control enclosure e Labor to install the above identified equipment. e Relay and communications settings. e Testing. ) e Commissioning with all users. e Geotechnical investigations. e Inspections. e Written Acceptance of Relay Module. e Custody Transfer of Relay Module. e Engineering. e Construction Management. e Fencing. e Cabling. e Foundation. APPENDIX B TO UTILITY MEMORANDUM OF AGREEMENT FOR 2016 DOUGLAS SUBSTATION IMPROVEMENTS DOUGLAS SUBSTATION CONTROL ENCLOSURE LEASE AGREEMENT Appendix B to Utility MOA -Douglas Substation Upgrades February 7_,2017 Page 1 of4 DOUGLAS SUBSTATION CONTROL ENCLOSURE LEASE AGREEMENT THIS AGREEMENT is made this 17th day of February,2017,between Matanuska Electric Association,Inc.whose address is:P.O.Box 2929,Palmer,AK 99645 (hereinafter referred to as "Lessor')and the Alaska Energy Authority whose address is:813 W.Northern Lights Blvd., Anchorage,AK 99503 (hereinafter referred to as "Lessee”). 1.LEASED PREMISES Lessor does hereby lease to Lessee the surface of the following described land located in the Palmer Recording District,State of Alaska (the "Leased Premises”): Within the W1/2 NW1/4 SW1/4,and that portion of the W1/2 SW1/4 NW 1/4 lying south ofWillowFishhookRoadR/W as follows:a parcel of land the size of the footprint (30'x 70') of the Control Enclosure referenced in the Utility Memorandum of Agreement For 2016 Douglas Substation Improvements dated February 17,2017 ("MOA”),and as further depicted on the attached drawing.(the "Leased Premises'): 2.ACCESS Lessee,IMC,and its contractors and employees may have adequate ingress and egress to Lessor's property so as to gain access to the Leased Premises and other relevant equipment,including use of the constructed driveway within Lessor's property,provided that Lessee shall not have access to Lessor's substation facilities except that in the event the 1984 Douglas Substation Agreement expires prior to being amended,or is otherwise terminated,MEA shall also provide reasonable access to AEA and the IMC to the equipment which AEA retains ownership of following expiration of the 1984 Douglas Substation Agreement for purposes of operating and maintaining the equipment consisting of Items Nos.3,5,7 and 20 (if necessary)listed on Attachment C,Douglas Substation Improvements,to the1984 Douglas Substation Agreement. 3.TERM OF LEASE This Lease is for a period of 45 years.The Lease may be terminated in advance of its expiration date by mutual consent of Lessor and Lessee. 4.RENTAL PAYMENT Lessee shall pay Lessor annual rent of $1.00 per year. 5.TAXES Lessee is not responsible for real property tax,but is responsible for any personal property taxes levied against Lessee's facilities kept on the Leased Premises. 6.UTILITIES AND MAINTENANCE Lessee shall pay for electricity and any other utilities it may require.Lessee shall be responsible for its own trash removal and maintenance of the premises including snow removal within the Leased Premises and access routes. Appendix B to Utility MOA -Douglas Substation UpgradesFebruary47,2017 Page 2 of 4 7.USE OF PREMISES AND SITE PLAN Lessee covenants that the use of the Leased Premises is solely for installation,operation and maintenance of the Control Enclosure and other uses authorized under Section 2 of this Agreement.Prior to commencing any site preparation,Lessee or its contractor shall obtain Lessor's approval of Lessee's plan for vegetative clearing,disposition of cut trees and brush,and other site preparation.No excavation shall be done on the Leased Premises without Lessor's prior approval.All disturbed areas shall be recontoured and revegetated so as to prevent soil erosion. 8.LESSEE COMPLIANCE WITH ALL LAWS Lessee,payable solely as an operating cost under Sections 7 and 8 of the Second Amended and Restated Alaska Intertie Agreement,shall comply with all laws,regulations, orders and ordinances of federal,state and municipal authorities,and with any direction of any public officer,pursuant to law which shall impose any duty upon Lessor or Lessee with respect to the Leased Premises.Other than the licenses and permits for the Control Enclosure that MEA is required to obtain under the MOA,Lessee,payable solely as an operating cost under Sections 7 and 8 of the Second Amended and Restated Alaska Intertie Agreement,shall obtain all licenses or permits which may be required for its activities on the Leased Premises,and is solely responsible for determining which licenses,permits or authorizations are applicable to its activities.Lessor will cooperate with Lessee in Lessee's acquisition of needed permits or licenses and will,if and where necessary,join with Lessee in applying for such licenses or permits. 9.SURRENDER OF PROPERTY IN GOOD CONDITION At the expiration of the lease term,Lessee shall remove its facilities and surrender the Leased Premises to Lessor in as good condition as it was at the beginning of the term, free from contaminants,waste or contaminated soils.The Leased Premises does not need to be restored to original contours,but must be left in a condition that will not contribute to soil erosion within the Leased Premises or adjacent land. 10.RIGHT OF ENTRY Lessor and its representatives may enter the Leased Premises,at any reasonable time, for the purpose of protecting the property from loss or damage,inspecting the property, performing any work which Lessor elects to undertake made necessary by reason of Lessee's default of any of the terms of this Agreement,or any other lawful purpose. 11.LESSOR'S RIGHTS IN DEFAULTS Lessor shall give Lessee thirty (30)days written notice of termination of this Lease if Lessee shall be in default in the performance of any covenant of this Lease Agreement and if such default is not cured within fifteen (15)days after written notice thereof given by Lessor,or,if such default shall be of such nature that it cannot be cured within such 15- day period,Lessee shall continuously proceed with diligence and in good faith to remedy such default. 12.INDEMNIFICATION BY LESSEE Lessee,payable solely as an operating cost under Sections 7 and 8 of the Second Amended and Restated Alaska Intertie Agreement,agrees to forever indemnify,defend, and hold harmless Lessor from all liability for damage to property or injury or death to persons,including all costs and expenses incident thereto,resulting from,or in any way Appendix B to Utility MOA -Douglas Substation Upgrades February _t7.,2017 Page 3 of 4 related to,the negligent,reckless,or intentional actions or omissions of Lessee in connection with this Lease Agreement. 13.LIABILITY FOR NEGLIGENCE If Lessor pays a sum of money for property damage,personal injury,or any fee or penalty imposed by any governmental agency,resulting from the failure of Lessee to observe or perform any covenant of this Lease Agreement required to be performed by Lessee,then the sum so paid by Lessor,together with all costs,damages,and reasonable attorney's fees,shall be considered additional rent,due in the month succeeding such payment and collectable at such time,payable by Lessee solely as an operating cost under Sections 7 and 8 of the Second Amended and Restated Alaska Intertie Agreement,. 14.EXPIRATION OF LEASE At the expiration date of this Lease Agreement,if Lessee carries over,said Lease Agreement shall continue on a day-to-day basis until anew Lease Agreement or a renewal of the existing Lease Agreement is signed. 15.SUBLEASING Lessee may not sublease or assign any portion of the Leased Premises. 16.NOTICES Any notice given under this Lease Agreement must be in writing and sent by registered mail to the last address of the party to whom the notice is to be given,as designated by such party in writing.Lessor hereby designates its address as:PO Box 2929,Palmer,AK 99645.Lessee hereby designates its address as:813 W.Northern Lights Blvd., Anchorage,AK 99503. IN WITNESS WHEREOF,the parties have executed this Lease Agreement on the day and year first above written. LESSOR: By: Title: LESSEE: By: Title: Appendix B to Utility MOA -Douglas Substation UpgradesFebruaryU2,2017 Page 4 of 4 LEASEDPREMISESV7,2017COMMUNICATIONSv7™BUSTING EXSTING EXISTING COMMUNICATIONS FENCE NSW CONTROL SUBSTATION ae ENCLOSURE ENCLOSURE \GATE \ LA.== {--+}KXSTING TT URTTT ERY)y--CONTROLaENCLOSURE RESTING 138 k¥EQUIPMENT TRANSMISSION EXsTING 24.9 KV EQUIPMENT DISTRIBUTION MISTING POWER TRANSFORMER wo Q ta 00 ene &bens ROT 6 orERtett ="Bactlb Amccaticn =e =coe eee DOUGLAS SLBSTATION Scary er CONCEPTUAL SITE PLUNSSee dee iich AppendixBtoUtilityMOA-DouglasSubstationUpgradesFebruaryPage5of4 APPENDIX CTO , UTILITY MEMORANDUM OF AGREEMENT FOR 2016 DOUGLAS SUBSTATION IMPROVEMENTS INTERTIE OPERATIONS COMMITTEE ENGINEER'S BUDGETARY ESTIMATE SUMMARY Appendix C to Utility MOA -Douglas Substation UpgradesFebruary$7 ,2017 Page 1 of 3 Client:Matanuska Electric Association,Inc. Project Code:MEA W.O.EN16-3.2 Desc:Douglas Substation Control Endosure Replacement Engineer's Budgetary Estimate Summary Type:Budgetary Base Currency:US Dollars Estimate Summary Extended Total Control Enclosure:|$713,120 Transmission:S 575,748 Distribution:S 292,361 Total Estimate:$1,581,229 Cover Sheet 11/21/2016 Mataruska Escort Assoostcn ino.Oxnujiae Stost ston Budgetary E strateMEAWO.EN 143Engineer's Budgetary Estate Summary Extended Extended ten Contractor Contactor Extended Extanded Osscription Later Matera oru Total GROUP F:FOUNDATIONS 37948 27774 632) OSTROHUDON a 255 axa 18 ta?TRANS SSION 73664 1astz 48576 [GROUP G:STATION SERVICE TRANSFORMERS 43,20 x0 7E8 19186 DONS TREUTROA &e0 450 13840 9590 TRA S eSa CA 56x 480 184 $s90 GROUPE RETIREMENT 25.920 25.976)OS TRSUTION 12960 42960 TRANS WSSION 1238 T1290 GROUP KR CONDUIT AND CARLE T4653 LOR BOSSES] OSTREUROY 28 00R PREG 1.4 TRANS¥S SON Tea?2339 123,580 GROUP 1:SITE WORK a27 S27O:STRBUTION 2.613 2613 TRANS S510 4613 2413 GROUP 0:GROUNDING 0255 {4987 FEE-E)OIBTREUTION 4iz 7.483 11.611 TRANS oa OA 4177 7,483 11.877) GROUPP:CONTROL ENGLOSURE 34.000 $000 713,120 754,120OSTRSUTEA40800500213936226216TRANSSSION25,200 300 499 184 577 804 Subtotal]244,703)T55 777]T2001 -{R08 Ts]MobdizationDemobil zation §,000! Heated Equipment Storage (0.5%}5,494| Project Management (3%)32,963)Engineering 161,042] Testing &Commissioning 50,000)Contingency (10%)37,798 Construction Management 65,000 Construction Engineering §5,000 Survey 14576Geotechnical18,400} Relay Settings 20,000] Cutover Play 3,H4 Subtotal]1,567,392; Performance Bon 13,837 Tota Estima 1,581,229 MAAS €jozabedAseniqeLL02¢sepelBdnuaiejsqnsse|6nog-YOWAllin0}9xipueddy' Wand ay,fanuary 23.247} Une 1[Douglas Substation Project Cost (OPTION 1)Project $AEA EA crt. 2 3]ProjectCost-Pee the Last (MC Meeting (5 Estimate)$1$91,2791al|§]Gnd aure-(AEA Share}$713,120]$713 104]Project OleactCosts (0C}$100,776]7]Project-Otrect Costs tessACAshave (0C-AEA Stace}$325 046] ua |O|MEA Share OC GCM}$118 437 $115,097 LOTWMC Stare OC (70%t (MEApay25%)$268,959]$67,450 $202,469]MEA pays MC share 14 12]Prodect -Inder ect Costs (1C}$a 453]1a]MEA there(C (20%)$144,736]$144,736 fee rere (70%)(MEA pay 25%)$337,717 guas $25 3.288]MEA Pays OC share 14 16]Total OFS Engineering Estimate)$1,541,229}$713,120 $412,552 $65797 17]MEA -EngineeringCosttodate $147,425 $4906 $110.719,EA Ferd Engerewing{MC nay 75%f1a] 14] Fa 2 FP B Project Total (inchuléng Engineering}!$1,728 #54 $713,120 8 $356,4FEL ALA Caysforthe Cond EnchosureFy)12%26 0%2 Fal €jogebedLLOZSAseniqe4sapeiidnuoneysqnssejSnoq-YOWAllin0}©xipueddy Intertie Management Committee Resolution No.17-2 Approval of Amendment to the Utility Memorandum of Agreement for 2016 Douglas Substation Improvements (MOA)and Amendment to IMC Budget WHEREAS,the Intertie Management Committee (IMC)approved the Utility Memorandum of Agreement for 2016 Douglas Substation Improvements dated February 17,2017 ("Douglas Substation MOA”)to implement Improvements necessary to provide for the continued safe,reliable,and economical operation of the Alaska Intertie. WHEREAS,the Douglas Substation MOA provides for the Alaska Energy Authority (AEA)to procure and deliver the Control Enclosure,and MEA to provide construction at Douglas Substation necessary for installation of the Control Enclosure. WHEREAS,Appendix C to the Douglas Substation MOA provides for the allocation costs of associated with the Douglas Substation Improvements,but the Douglas Substation MOA does not clarify the mechanism for collection and payment to MEA for its expenses incurred under the Douglas Substation MOa. WHEREAS,the IMC Participants desire that MEA invoice individual IMC Participants for MEA's expenses incurred under the Douglas Substation MOA through AEA and under normal IMC budgeting processes,which desire requires amending both the Douglas Substation MOA and the IMC budget. NOW,THEREFORE,IT IS RESOLVED THAT: SECTION 1.The IMC approve the attached amendment to the Douglas Substation MOA to add to Article II,Section 3,and new subsection C to clarify that Project Costs allocated and assigned to IMC Participants under Appendix C to the Douglas Substation MOA be invoiced and paid through AEA using normal IMC budgeting processes. Dated at Anchorage,Alaska,this 18 day of August,2017. Chair \ LoLAE alLifeGYCM, we 2SYSecretary FIRST AMENDMENT TO UTILITY MEMORANDUM OF AGREEMENT FOR 2016 DOUGLAS SUBSTATION IMPROVEMENTS This First Amendment to the Utility Memorandum of Agreement for 2016 Douglas Substation Improvements dated February 17,2017 ("Douglas Substation MOA”)is entered by and between the ALASKA ENERGY AUTHORITY ("AEA”),MATANUSKA ELECTRIC ASSOCIATION,INC. ('MEA'),and the Intertie Management Committee ("IMC”)on behalf of the Participating Railbelt Utilities. RECITALS WHEREAS,the Douglas Substation MOA provides for the Alaska Energy Authority (AEA)to procure and deliver a Control Enclosure,and MEA to provide project management and construction at the Douglas Substation necessary for installation of the Control Enclosure. WHEREAS,Appendix C to the Douglas Substation MOA provides for the allocation of costs associated with the Douglas Substation Improvements,but does not clarify the mechanism for collection and payment to MEA for its expenses incurred under the Douglas Substation MOA. WHEREAS,the IMC Participants desire that MEA invoice individual IMC Participants for MEA's expenses incurred under the Douglas Substation MOA through AEA and under normal IMC budgeting processes,which desire requires amending the Douglas Substation MOA. AGREEMENT NOW,THEREFORE,it is agreed that the following Subsection C be added to Article Il, Section 3."Project Cost Responsibility”of the Douglas Substation MOA: C.Project Costs allocated to IMC Participants under Appendix C to the Douglas Substation MOA (including MEA as an IMC Participant for amounts allocated fortransmissionpurposesoftheImprovements,but excluding MEA for amounts allocated to MEA for distribution purposes of the Improvements)shall be invoiced and paid under normal IMC budgeting processes.Those IMC Participant Project Costs will be included in the IMC approved budget.MEA will invoice AEA for the IMC Participants allocation of expenses incurred by MEA.AEA will review,approve,and pay MEA's invoices.AEA will collect amounts owed by individual IMC Participants through the normal IMC monthly First Amendment to Douglas Substation MOA August 18,2017 Page 2 of 3 invoicing process based on the budget.After year end the IMC Participants will be refunded (or billed)for their share of the costs that are over (under)budget under the normal IMC true up process. Except as expressly amended by this First Amendment,the Douglas Substation MOA remains in full force and effect. IN WITNESS WHEREOF,the undersigned representatives have caused this First Amendment to the Utility Memorandum of Agreement for 2016 Douglas Substation Improvements dated February 17,2017 to be executed by their duly authorized officers or representatives as of the date first above written.This MOA may be executed in counterparts each of which shall be an original,and all of which shall be merged into this Agreement. DATED this 18"day of August,2017,at Anchorage,Alaska. ALASKA ENERGY AUTHORITY SEZ.LAM MERECAEOgrrabingCfFicee STATE OF ALASKA THIRD JUDICIAL DISTRICT The foregoing Agreement was acknowledged before me this 18"day of August,2017, of the,the Chief Operad wey OCF cerbyKickWarren Alaska Energy Authority,a public corporation of the State of Alaska,on behalf of the aalWEcorporation.ayom<en eos ees,*3 SWaligteFosNOTA» D 4gsimar:44374Upcf=Notary Public in and for Alaska 3 io F vi «ne:3gtsOFALPoFMycommissionexpires:Us Cn office 0,Peace?-==i rd'yy xpires os*hrnasanent™ First Amendment to Douglas Substation MOA August 18,2017 Page 3 of 3 DATED this 18"day of August,2017,at Palmer,Alaska. RIC ASSOCIATION,INC. EO 'toy?expires weSTATEOFALASKA"wwe THIRD JUDICIAL DISTRICT The foregoing Agreement was acknowledged before me this 18"day of August,2017, ,the CEO ofby_jony S27 Matanuska Electric Association,Inc.,an Alaskan corporation,on behalf of the corporation. >We Notary Public in and for Alaska My commission expires:AQ Ha ofki Z e. DATED this 18"day of August,2017,at Anchorage,Alaska. INTERTIE MANAGEMENT COMMITTEE me WarIts: STATE OF ALASKA THIRD JUDICIAL DISTRICT The foregoing Agreement was acknowledged before me this 18"day of August,2017, of the,the ChairbyMackDolonston Intertie Management Committee,on behalf of the committee. DW.ges,FRAMERS In,Notary Public in and for Alaska Oh °¢a My commission expires:\W Mn oF ce a%e "Ma,>St- {,>abWe]gS ALASKA INTERTIE MANAGEMENT COMMITTEE RESOLUTION NO.17-3 Intertie Management Committee's Railbelt Operating and Reliability Standards WHEREAS,the Intertie Management Committee's Railbelt Operating and Reliability Standards are the product of many years of work by various utility groups. WHEREAS,in October of 2013 the Intertie Management Committee adopted a set of reliability standards to govern operation of the Alaska Intertie between Anchorage and Fairbanks. WHEREAS,during the intervening time the Intertie Management Committee has developed new standards and revised existing standards within that document using the work of the North American Electric Reliability Corporation,modified to reflect the relatively small and lightly interconnected Alaska Railbelt Electric System (Alaska Railbelt). WHEREAS,the new standards proposed for adoption are,as follows: Alaska Standard AKBAL-502-0 -Planning Resource Adequacy Analysis, Assessment and Documentation Alaska Standard AKINT-001-0 -Interchange Information Alaska Standard AKMOD-025-2 -Verification and Data Reporting of Generator Real and Reactive Power Capability and Synchronous Condenser Reactive Power Capability Alaska Standard AKMOD-026-1 -Verification of Models and Data for Generator Excitation Control System or Plant Volt/Var Control Functions Alaska Standard AKMOD-027-1 -Verification of Models and Data for Turbine/Governor and Load Control or Active Power/Frequency Control Functions Alaska Standard AKMOD-028 -Total Transfer Capability Alaska Standard AKMOD-032-1 -Data for Power System Modeling and Analysis Alaska Standard AKMOD-033-1 -Steady-State and Dynamic System Model Validation Alaska Standard AKPRC-006 -Automatic Under-frequency Load Shedding {00029601.1}Page 1 of 2-IMC Resolution 17-3 WHEREAS,these Intertie Management Committee Railbelt Operating and Reliability Standards are intended and therefore expected to be a living document that is to be continually updated and revised by the Alaska Intertie Management Committee when necessary. BE IT RESOLVED,the Intertie Management Committee's adopts these new and revised Railbelt Operating and Reliability Standards as presented by the Alaska Intertie Management Committee's Intertie Operating Committee. BE IT FURTHER RESOLVED THAT,the Alaska Intertie Management Committee's Intertie Operating Committee is charged with reviewing and monitoring the applicability and appropriateness of these Railbelt Operating and Reliability Standards and reporting to the Alaska Intertie Management Committee when changes and additions to these Railbelt Operating and Reliability Standards are recommended. Dated at Anchorage,Alaska this 10°day of October 2017. Chair ATTEST: ecretary {00029601.1}Page 2 of 2 -IMC Resolution 17-3