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Home My WebLink AboutBPMC Mar. 19, 2015=°NAGasYFPbBRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING AGENDA Thursday,March 19,2015 9:30 a.m.-11:30 a.m. Alaska Energy Authority's Board Room 813 West Northern Lights Boulevard,Anchorage,AK To participate by teleconference,dial 1-888-585-9008 and use code 467 050 126. CALL TO ORDER ROLL CALL FOR COMMITTEE MEMBERS PUBLIC ROLL CALL AGENDA COMMENTS /MOTION FOR APPROVAL PUBLIC COMMENTS APPROVAL OF MEETING MINUTES -Jan.23.2015 OLD BUSINESS A.Approve O&D Committee recommendation of "no action required"for HEA on compliance to Resolution 2013-03 (Adoption of Railbelt Reliability Standards)Action item NEW BUSINESS A.FY16 Budget Action item Ron Woolf B.FY15 Budget transfer correction Action item Kelli Veech C.Battle Creek update Bryan Carey D.Consideration of HEA's disputes not addressed in the "Statement of Disputes”dated Jan 23,2014 per Resolution 14-11.Cory Borgeson E.Election of Vice-Chair Cory Borgeson COMMITTEE REPORTS A.Budget committee OPERATORS REPORT COMMITTEE ASSIGNMENTS MEMBERS COMMENTS NEXT MEETING DATE --May 29,2015 ADJOURNMENT CHECKLIST FOR BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETINGS Meeting Date/Time:TH Blt Q 4 :SO Meeting Location: Task CONFIRMED/DATE Secure Meeting Date Every other month last two weeks of the month.MAKE SURE IT'S NOT A STATE HOLIDAY tO Secure Meeting Date with Chairman,Cory (call his Exec Assistant,Susan 907-458-5721) Secure meeting room for use (block out 60 minutes prior to meeting to allow for set-up time) Send email "SAVE THE DATE?”to all Committee members,in Outllook Contacts "BPMC'with meeting date/time/location.Need five for quorum. Draft Agenda.Ask Bryan Carey for any items. Send Draft Agenda by email to Chairman (Cory)for review/additions and approval Post to the State of Alaska's Online Notice System 5 business days prior to the meeting.Attach agenda. One week prior to meeting,email packet to members (big group BPMC)including all attachments (teleconference information /agenda /draft of previous meeting minutes/motions/general handouts)(SEND IN PDF FORMAT!) Print 9 full packet of information and bring to the meeting for thecommitteemembersandAttorneys.Set out tent cards.Need new rate, For handouts print out 20 agendas and 10 copies of other items. Put on pedestal by sign-in sheet. ALSO BRING TO THE MEETING:State Calendar,List of Reps, Sign in Sheet,and Minutes in final form from the last meeting for Chair's signature if they are approved!Jump drive for Miranda Sign in on the phone 5 minutes prior.ny code 1S 300% Accutype will be present but also record from our system.tn stru eflrredFolbernmBa Following the meeting:Make sure you disconnect the phone!Stop recording.Have Chair and Sara sign approved minutes. 1Dy OC.bra Zwr.Ask.Sandie, Take the disc from the recording out of the system and download recording and place in O:drive and also in BPMC meeting folder Send a pdf of the signed minutes to the committee members. Bradley Lake Project Management Committee -Alaska Online Public Notices STATUS:Active Bradley Lake Project Management Committee ALASKA ENERGY AUTHORITY (AEA) Regular Meeting Page 1 of 1 Notice is hereby given that the Bradley Lake ProjectManagement Committee will hold a regular meeting on Thursday,March 19,2015 at 9:30 a.m.For additional information contact Teri Webster at 907-771-3074. This meeting will be conducted by electronic media pursuant to AS 44.62.310 at the following location: Alaska Energy Authority Board Conference Room,813 West Northern Lights Boulevard,Anchorage,Alaska;a teleconference line has been set up for those unable to attend inperson.Dial 1-888-585-9008,Enter Code 467-050-126#. The public is invited to attend.The State of Alaska (AEA)complies with Title Il of the Americans with Disabilities Act of 1990.Disabled persons requiring special modifications to participate should contact AEA staff at (907)771-3074 to make arrangements. "Attachments,History,Details Attachments AGENDA.pdf Revision History Created 3/12/2015 9:11:55 AM by tawebster Modified 3/12/2015 9:12:34 AM by tawebster Modified 3/12/2015 9:13:28 AM by tawebster Modified 3/12/2015 9:14:21 AM by tawebster Modified 3/12/2015 9:15:53 AM by tawebster https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=1 75973 [Details] [Details] [Details] [Details] Details Department: Category: Sub-Category: Location(s): Project/Regulation #: Publish Date: Archive Date: Events/Deadlines: Commerce,Community and Economic Development Public Notices Advisory Committee Meeting Statewide 3/12/2015 3/20/2015 3/12/2015 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING AGENDA Ap NecThursday,March 19,2015 9:30 a.m.-11:30 a.m. Alaska Energy Authority's Board Room 813 West Northern Lights Boulevard,Anchorage,AK To participate by teleconference,dial 1-888-585-9008 and use code 467 050 126. make ast(9 handouls 77 on the doctume'rsu/ CALLTO ORDER Vine pudlre loelow Ww din A NCSROLLCALLFORCOMMITTEEMEMBERS anPUBLIC ROLL CALLAGENDACOMMENTS /MOTION FOR APPROVAL AY?|TetaPUBLICCOMMENTS 64,APPROVAL OF MEETING MINUTES--Jan.23.2015 WW?x 7ofOLDBUSINESSAY an i A.Approve O&D Committee recommendation of "no action (yes)XNwrequired”for HEA on compliance to Resolution 2013-03aneVEL(Adoption of Railbelt Reliability Standards)Action item 8.NEW BUSINESS "7A._FY16 Budget ' Action item Ron Woolf FY15 Budget transfer correctio Action item Kelli Veech © Battle Creek update Bryan Carey no docupents %Consideration of HEA's disputes not addressedinthe _Soe"Statement of Disputes"dated Jan 23,2014 per Resolution 14-11.Cory Borgeson po @ ,Election of Vice-Chair IM MWnr Cory Borgeson ne documemtsaACTOeColicof,/COMMITTEE REPORTS ) ey.Budget committeevAOPERATORSREPORT Yesy/COMMITTEE ASSIGNMENTS #48 .12/MEMBERS COMMENTS 137 NEXT MEETING DATE -May 29,2015 wy ADJOURNMENT IHL D 38,38CommiteeAosignmrents Ds Duk,Yeo,COMM Ash Tnartgina options for Laver ProyecdsBudgghtomm-Monthly review "h iNvordes Feom ub ler ik TET tosue Karen (Brian Harvey hao his list -- _ATTENDANCE -BPMC REGULARMEETING,March 119,2015 @99:30 am |COMMITTEE MEMBERS ALTERNATE /|SL a Cory Borgeson,CChair a |GVEA |-"|Lynn1 Thompson =a )|"YA,Lee Thibert,Vice Char -SsS*S* *« d EAS Burke Wick SSS"Brad Janorschke HEA 'Harvey Ambrose_TS Sara Fisher-Goad,Secretary/T reasurer AEA S,Bryan Carey OB 7 Joe Griffith MEAs GaryKubn stst-<CSsS Sf.|dimTrent MLP)|RichardMiller .|John |Foutz SEW /Jeff Estes -- =PublicMembers =|COUNSEL /(MM WH Vn a Kirk Gibson,McDowell Rackner&Gibson PC ;Brian Bjorkquist,Dept of Law Ue a eeVALbisa7 Come JoweS a Bradley Lake Project Management Committee Thursday,March 19,2015 @ 9:30 A.M. **PLEASE WRITE LEGIBLY™ NAME ORGANIZATION _Ahavanda tugbhl!AATD of ANDA Lee Ate Boyha,Latey REA Socelyn Croker SEA Alax CO)wer JA LE Koll Vaghk AEPRonSatGVEA Patricle Dolan GVEA Beni Sa174 D RCA Aa Pi yor ge AGORie|Ie YVY\lle MLé#P Polo (ay tak Lave Aral doe Hed DORKL CHEK CEA Kak GrBwnr GEMC Brow ficient Phuc) Teri Webster From:Kirk Gibson <kirk@mcd-law.com> Sent:Friday,March 13,2015 9:37 AM To:Teri Webster Cc:Brian Bjorkquist;Cory Borgeson;Joe Griffith loe.Griffith@mea.coop) Subject:RE:Chugach Electric's Designated Representative to BPMC and IMC Teri- An office in the BPMC or IMC is held by a "person”that is a representative of a Member.Chugach's designation of a new representative creates a vacancy in the Vice-Chair position for both the BPMC and the IMC.Under the Bylaws of both organizations,the Committee shall elect a successor to the office at the next regular meeting .The vacancy can be filled by the new Chugach representative if the Committee so chooses. The BPMC's next regularly scheduled meeting is next Thursday (March 19").|do not believe the IMC has set the date of the next meeting.|have taken the liberty of copying both Cory and Joe on this meeting to inform them of this situation (if they do not know already)and necessary agenda item. Please do not hesitate to contact me should you have any questions or desire further information. Best,Kirk From:Teri Webster [mailto:twebster@aidea.org] Sent:Thursday,March 12,2015 1:06 PM To:Kirk Gibson Cc:Brian Bjorkquist Subject:Chugach Electric's Designated Representative to BPMC and IMC Kirk, CEA has changed their designation representative for both the BPMC and IMC.Since Brad was voted the Vice- Chair for both,does the new representative automatically become the vice-chair? Thank you, Teri Webster Executive Assistant Alaska Energy Authority (AEA) 813 W Northern Lights Boulevard,Anchorage AK 99503 (907)771-3074,twebster@aidea.org BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Alaska Energy Authority,Anchorage,Alaska March 19,2015 1.CALL TO ORDER Chair Borgeson called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 9:33 a.m. 2.ROLL CALL (for Committee members) Cory Borgeson ak vay Electric Association [GVEA]);Sara Fisher-Goad (Alaska Energy AeBryancarey"octyn caine Cotsolandaaln dq Ke i Vee 4 AEA);Brian Bjorkquist ttorneyGeneral's Office [AGO]);Brian Hicke CEA);Patrick Dol "Roni Woolf{GVEA);Bob Days>ee cia KirkSaas einenRackner &Gibson);Mark Johnst rieMiller,-Jeff.Warne 'ission Hutchison (HEA). 4,AGENDA COMMENTS/MOTION FOR APPROVAL Mr.Ambrose requested adding an agenda item discussing the DNR Forestry request to install a repeater in the AEA/HEA Bradley Road microwave site.Chair Borgeson placed this under Item SF.- The agenda was approved as amended. 5.PUBLIC COMMENTS None. 6.APPROVAL OF PRIOR MEETING MINUTES-Jan.23,2015 MOTION:Mr.Griffith made a motion to approve prior meeting minutes of January 23, 2015.Motion seconded by Mr.Wick. DRAFT BPMC Minutes 3/19/15 Page |of 7 Bradley Lake Project Management Committee Meeting Thursday,March 19,2015 Agenda Item:8A MOTION:Move that the Bradley Lake Project Management Committee approve the fiscal year 2016 Operating and Capital budget as presented. Move:"BurYe Ou cl Second:at trent Bradley Lake Project Management Committee Meeting Thursday,March 19,2015 Agenda Item:8B Amend the FY15 Bradley Lake budget to properly reflect the Transfer To(From) Operating Reserve from a negative to a positive $160,366 and increase the Interest Income by $408,510 to $1,859,550. MOTION: Move:mie Treat Second:Burkle Wie BPMC 3/19 /15 First Second First Second First Second First Second First Second WOOO!||Cered LHe]Naaman ae TamanRollCallAgendaMinutes7AComplianceon|8A FYi6 BudgetRollcallfromtoptobottomendingwithChair2013-03 Yes V2 No Yes No Yes No No Yes ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY BOARD MEETING Homer Electric Association ZL Matanuska Electric Association vA City of Seward An Alaska Energy Authority 4 G Municipal Light &Power &, Chugach Electric Association VA / WAfh WA Golden Valley Electric Association V4 ceIS8|JsRoll call from top to bottom ending with Chair First Second First Second First Second First Second First Second Jee,OME) 8B FY15 Budget SE Elect nv Cc easTOAmendment1ViceCharcwHINL Yes No Yes No Yes No Yes No Yes No Homer Electric Association Matanuska Electric Association City of Seward Alaska Energy Authority Municipal Light &Power Chugach Electric Association Golden Valley Electric Association ss Next Meeting:xxxx XXXX XX,XXXX Bradley Lake Operations &Maintenance Budget Entry Page -HEA Payroll FY 2016 Budget a]HEA [535 -Operation Supervision &Eng.HEA O&M Contract Director of Power 181.04 302.00 54,674 2|HEA {535 -Operation Supe-vision &Eng.HEA C&M Contract Power Production Manager 166.30 444.00 acd 73,837 3]HEA [535 -Operation Supervision &Eng.HEA O&M Contract Bradley Plant Superintendent 144 36 1,113.00]190.06 $0.00 177,773 4]HEA [$35 -Cperation Supervision &Eng.HEA C&M Contract Engineering time as needed 87.71 69.00 6,0525]HEA |S41-Maint.Suoervision &Engineering HEA O&M Contract Director of Power 181.04 151,00 $27,337.04 6)HEA [541-Maint.Suoervision &Engineering HEA O&M Contract Power Production Manager 166.30 442,00 "9 oO $73,837.20?7|HEA [841 -Maint.Susarvision &Engineering HEA O&M Contract Bradley Plant Superintendent 144.36 668.00 |490.00|60.00 S 107,832.48 8]HEA [S41-Mairt.Sucarvisian &Engineering HEA O&M Contract Engineering time as needed 102.27 181.0C $18,510.87 S!HEA 1537 -bydrauic Expenses HEA O&M Contract Pant Forerran Crew 1 89.40 174,00 110.94 10.00 134.32 25.00|$20,023.00 10)HEA {$37 -Hydrauic Expenses HEA O&M Contract Piant Forerran Crew 2 89.40 174,00 110.94 10.00 134.32 25.c0|$20,023.00 lL]HEA [$37 -Hydraube Expenses HEA O&M Contract Prant Rover Crew 1 82.37 174.00 101.57 10.00 122.44 25.00 |$18,409.08 12]HEA |1837-Kydraute Expenses HEA O&M Contract Piant Rover Crew 2 82.37 174,00 101.57 10.00 122.44 25.0015 18,409.08 13}HEA {537 -Kydraulic Expenses HEA O&M Contract Plant Rover Trainee 82.37 174.00 101.57 10.00 122.44 25.c01$18,409.08 14)HEA [538 -Electric Exoenses HEA O&M Contract Plant Foreman Crew 1 +on call 89.40 348.00 110.94 20.00 134.32 182.001 $57,776.24 15]HEA {538 -Electric Exoenses HEA O&M Contract Plant Forerran Crew 2 +on call 89.40 348.00 110.94 20.00 134.32 182.00 |$57,776.24 16|HEA {538 -Electric Exoenses HEA O&M Contract Plant Rover Crew 1 +on call 82.37 348.00 101.57 20.00 122.44 182.00}$52,980.24 17)HEA [538 -Electric Expenses HEA 118M Contract Plant Rover Crew 2 +on call 82.37 348.00 101.57 20.00 122.44 182.00}§52,980.24 18)HEA [538 -Electric Exoenses HEA O&M Contract Piant Rover Trainee 82.37 348.00 101,57 20.00 122.44 40.0015 35,593.76 19]HEA |$39-Misc.Hydraulic Power Gen Exp.HEA ORM Contract Piant Foreman Crew i 89.40 174.00 110.94 10.00 134.32 25.00/S 20,023.00 20)HEA {539+Misc.Hydraulic Power Gen Exp.HEA G&M Contract Plant Foreman Crew 2 89.40 174.00 110.94 10.00 134.32 25.00}$20,023.00 21]HEA [539 -Misc.Hydraulic Power Gen Exp.HEA C&M Contract Plant Rover Crew 1 82.37 174.00 101.57 10.00 122.44 25.00|$18,409.08 22}HEA |539-Misc.Hydraulic Power Gen Exn.HEA O&M Contract Plant Rover Crew 2 82.37 174.00 101.57 10.00 122.44 25.00}1S$18,409.08 23]HEA {$39 -Mise.Hydraulic Power Gen Exp.HEA O&M Contract Plant Rover Trainee 82.37 174.00 101.57 10.00 122.44 2500}S$18,409.08 24|HEA |539-Micc.Hydraulic Power Gen Exp.HEA O&M Contract Procurement &Accounting as ne¢81.32 605.00 $49 198.60 25]HEA {539 -Mise.Hydraulic Power Gen Exp.HEA O&M Contract Clerical,Env.,Safety a5 needed 96.57 466.00 s 45,001.62 26|HEA [S42 -Maintenance of Structures HEA O&M Contract Piant Foreman Crew 1 89.40 174,00 110.94 10.00 134 32 25.06/$20,023.00 27|HEA [$42 -Maintenance of Structures HEA O&M Contract Plant Forerran Crew 2 89.40 174,00 110.94 10.00 134.32 25c0|$20,023.00 28]HEA [842 -Maintenance of Structures HEA O&M Contract Prant Rover Crew 1 82.37 174,00 161.57 10.00 122.44 25.C0}$18,409.08 29]HEA |542 -Maintenance of Structures HEA O&M Contract Piant Rover Crew 2 82.37 174,00 101.57 10.0C 122.44 25.00/S$18,409.08 30}HEA {542 -Maintenance of Structures HEA O&M Contract Plant Rover Trainee 82.37 174.00 101.57 10.00 122.44 25.00|$18,409 08 31]HEA {843 -Maintenance of Res.,Cams HEA O&M Contract Piant Forerran Crew 1 +helicoptd 89.40 100.00 110.94 2.00 134.32 12.00 1S 10,773.72 2|HEA (543 -Maintenance of Res.,Carrs HEA O&M Contract Piant Foreman Crew 2 +helicoptd 89.40 100.00 110.94 2.00 134.32 12.c0|$10,773.72 33}HEA /543 -Maintenance of Res.,Cams HEA ORM Contract Piant Rover Crew 1 +hel'coptor 82.37 100.00 101.57 2.00 122.44 12.00]S 9,909 42 34)HEA [543 -Maintenance of Res.,Dams HEA O&M Contract Feant Rover Crew 2 +helicoptor 82.37 100.00 161.87 2.00 122.44 120c07]5$9,909.42 35]HEA {543 -Maintenance of Res.,Cams HEA C&M Conteact Piant Rover Trainee +helicoptor 82.37 106.06 161.57 2.00 122.44 12.00)S$9,909.42 36]HEA [S44-Maint of Eectric Plant HEA C&M Contract Prant Foreman Crew 1 89.40 696.00 110.94 40.00 134.32 100.00 |$80,092.00 7)HEA [544 -Maint of E ectric Plant HEA O&M Contract Piant Foreman Crew 2 89.40 696.06 110.94 £0.00 134.32 100.60 |$80,092.00 38]HEA [S44 -Maint of E-ectric Plant HEA O&M Contract Piant Rover Crew 82.37 696.00 101.57 40.00 122.44 100.00 1$73,636.32 39]HEA |544-Maint of E-ectric Plant HEA C&M Contract Piant Rover Crew 2 82.37 696.00 101.57 40.00 122.44 100.00 |$73,636.32 Bradley Lake Operations &Maintenance Budget Entry Page -HEA Payroll FY 2016 Budget 544 -Maint of Electric Plant HEA O&M Contract Piant Rover Trainee 82.37 696.00 101.57 40.00 122.44 100.00 |$73,636.32 41|HEA [545 -Maint.Of Misc.Hydraulic Plant HEA O&M Contract Plant Foreman Crew 1 89.40 174,00 110.94 10.00 134.32 25.00 1$20,023.00 42|HEA 1545 -Maint.Of Misc.Hydraulic Plant HEA O&M Contract Plant Forerran Crew 2 89.40 174.00 110.94 10.00 134.32 25.00]$20,023.00 43]HEA [545 -Maint.Cf Misc.Hydraulic Plant HEA O&M Contract Piant Rover Crew 1 82.37 174.00 101.57 10.00 122 44 25.001$18,409.08 44}HEA [545 -Maint.Of Misc.Hydraulic Plant HEA O&M Contract Plant Rover Crew 2 82.37 174.00 101.57 10.00 122.44 25.001$18,409 08 45|HEA 1545 -Maint.Of Mise.Hydraulic Plant HEA C&M Contract Plant Rover Trainee 82.37 174,00 101.57 10.00 122.44 25001$18,409.08 46]HEA [5565 -System Control &Load Dispatching [HEA O&M Contract Engineering time as needed 90.57 541.00 §48,998 37 47|HEA |S71-Maint.Cf Overnead Lines HEA O&M Contract Line Crew $9.61 800.00 99.39 225.00 117.40 400.00 |$138,985.75 48|HEA |S71-Maint.Cf Overhead Lines HEA O&M Contract Engineering Labor 120.23 41.00 $4,929.43 49]HEA [573 -Maint.Cf Overhead Lines HEA O8M Contract Engineering Labor 120.23 20.00 $2,404.60 50|HEA [S71 -Maint,Of Overhead Lines Marker Ball Reolacement [Engineering Labor 120.23 41.00 $4,929 43 $ 1,904,869.68 O&M (payroll)$1,753 ,620.47 transmission (payroll)$151,249.21 $1,904,869.68 7 Serger ces Re A atediay wonAWWbhWNWNhNNNNNNNNNReeeeeBeeeoeDWOnFDURWHYkrYPOFWMWNAWPWN&231 WwUsUsb&wNBradley Lake Operations &Maintenance Budget Entry Page -HEA A/P &Other FY 2016 Budget Tes Activity ZZ Cost \ype EE-E AP Detail Description Total Cost m= HEA [535 -Operation Supervision &Eng.HEA O&M Contract 802010000 -Travel Commercial Travel $9,500.00 HEA |535 -Operation Supervision &Eng.HEA O&M Contract 802020000 -Training Technical Training $7,904,00 HEA |535-Operation Supervision &Eng.HEA O&M Contract 803010000 -Contractual Office Equip.Maint.$1,445.00 HEA |535 -Operation Supervision &Eng.HEA O&M Contract 804020000 -Supplies &Materials Small Items &Consumables $3,106.00 HEA 1535 -Operation Supervision &Eng.HEA O&M Contract 804020000 -Supplies &Materials Documert Cortrol $3,097.00 HEA |537 -Hydraulic Exoenses HEA O&M Contract 803010000 -Contractual Env.&Fish Game Studies $6,180.00 HEA |537 -Hydraulic Expenses HEA O&M Contract 803010000 -Contractual Dam Settlement Surveys $11,000.00 HEA [537 -Hydraulic Expenses HEA O&M Contract 804020000 -Supplies &Materials Supplies &Materials $2,608.00 HEA 1538 -Electric Experses HEA O&M Contract 802020000 -Trairirg Technical Training $30,827.00 HEA {538 -Electric Exoerses HEA O&M Contract 803010000 -Contractual Balancing &Vib Analysis $3,342.00 HEA [538 -Electric Expenses HEA O&M Cartract 804020000 -Supplies &Materials Turbine Lube Oil $6,000.00 HEA |538 -Electric Experses HEA O&M Cortract 804020000 -Supplies &Materials Consumables $6,232.00 HEA 1539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract 803010000 -Contractual Helicopter Transportation $60,763.00 HEA |539-Misc.Hydraulic Power Gen Exp.HEA O&M Contract 803010000 -Contractual Fixed Wing Transportation $117,600.00 HEA |539-Misc,Hydraulic Power Gen Exp.HEA O&M Cartract 803010000 -Contractual Sarge Shipping &Dockirg $35,000.00 HEA [539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract 803010000 -Contractual UPS/FedEx Shipping $2,488.00 HEA |539-Misc.Hydraulic Power Gen Exp.HEA O&M Contract 803010000 -Contractual Disposal Costs $5,000.00 HEA [539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract 803010000 -Contractual Telephone &Satellite $12,885.00 HEA [539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract 803010000 -Contractual CMMS Software Support $3,376.00 HEA [539 -Misc.Hydraulic Power Gen Exp.HEA O&M Contract 803010000 -Contractual Legal Services $3,459.00 HEA {539 -Misc,Hydraulic Power Gen Exp.HEA O&M Contract 803010000 -Contractual Fuel $72,878.00 HEA |539-Misc.Hydraulic Power Gen Exp.HEA O&M Contract 804020000 -Supplies &Materials Supplies &Materials $22,000.00 HEA [542 -Maintenance of Structures HEA O&M Contract 804020000 -Supplies &Materials Upgrade &Repair $10,713.00 HEA [542 -Maintenance of Structures HEA O&M Contract 804020000 -Supplies &Materials Fire Systems $6,360.00 HEA |542 -Maintenance of Structures HEA O&M Contract 804020000 -Supplies &Materials General Building Repairs $44,200.00 HEA |542 -Maintenance of Structures HEA O&M Contract 806010000 -Equip &Machinery Power Tools §11,500.00 HEA [542 -Mainterance of Structures HEA O&M Cortract 806030000 -Maintenance Projects |Equipmert Overhead Doors $4,000.00 HEA |543 -Maintenance of Res.,Dams HEA O&M Contract 803010000 -Contractual Civil Ergineering $5,200.00 HEA 1543 -Mainterance of Res.,Dams Nuka Repair 806030000 -Maintenance Projects Nuka Repair $21,630.00 HEA [543 -Mainterance of Res.,Dams Powerhouse Tunnel Drains 806030000 -Maintenance Projects Power Tunnel Drains $9,000.00 HEA |543 -Mainterance of Res.,Dams Powerhouse Tunnel Maintenard 806030000 -Maintenance Projects Power Tunnel Mairt.$20,000.00 HEA [544 -Maint of Electric Plant HEA O&M Contract 802010000 -Travel Travel $3,500.00 HEA [544 -Maint of Electric Plant HEA O&M Cortract 803010000 -Contractual Misc.Service Contracts $73,000.00 HEA [544 -Maint of Electric Plant HEA O&M Contract 803010000 -Contractual Relay Mairt.$18,443.00 PA EN Ante 35 36 37 38 39 40 41 42 43 44 45 46 47 46 49 50 51 Bradley Lake Operations &Maintenance Budget Entry Page -HEA A/P &Other FY 2016 Budget et Aid Sede aad Activity |Cost Type AP Detail Description :Total Cost a HEA {544 -Maint of Electric Plant HEA O&M Contract 804020000 -Supplies &Materials Supplies &Materials $27,245.00 HEA [545 -Maint.Of Misc.Hydraulic Plant HEA O&M Contract 803010000 -Contractual Misc.Service Contracts $3,900.00 HEA {545 -Maint.Of Misc.Hydraulic Plant HEA O&M Contract 804020000 -Supplies &Materials Consumables $43,000.00 HEA |545 -Maint.Of Misc,Hydraulic Plant Fish Water Control Design 806030000 -Maintenance Projects _|Fish Water Cortrol Design $24,900.00 HEA |556 -System Control &Load Dispatching HEA O&M Contract 803010000 -Contractual SCADA Maint $8,500.00 HEA |556-System Control &Load Dispatching HEA O&M Contract 803010000 -Contractual DCS,PCs &Electronic Ops.$50,000.00 HEA [556 -System Control &Load Dispatching HEA O&M Contract 804020000 -Supplies &Materials Supplies &Materials $6,199.00 HEA /925 -injury&Damages HEA O&M Cortract 809010000 -Administrative experse }insurance -General Liability $10,000.00 HEA /925-Irjury &Damages HEA O&M Cortract 809010000 -Administrative exverse [Insurance -Aviation $54,637.00 HEA |571-Maint.Of Overhead Lines HEA O&M Cortract 802010000 -Travel Generai Mairterarce $46,000.00 HEA |571 -Maint.Of Overhead Lines HEA O&M Contract 802010000 -Travel ROW Clearing $5,000.00 HEA |571 -Maint.Of Overhead Lines HEA O&M Cortract 802010000 -Travel Line Patrol $3,600.00 HEA |571-Maint.Of Overhesd Lines Marker Ball Replacement 802010000 -Travel Marker Ball Replacement $5,000.00 HEA |571-Maint.Of Overhead Lines HEA O&M Cortract 803010000 -Contractual ROW Clearing $90,000.00 HEA |571-Maint.Of Overhead Lines Marker Ball Replacement 803010000 -Contractual Marker 8all Replacement $200,000.00 HEA |539-Misc,Hydraulic Power Gen Exp.HEA O&M Contract 803010000 -Contractual 4ousekeeping as needed $1,800.00 HEA |539-Misc.Hydraulic Power Gen Exp.HEA Circuits &Radio -To Bernic|804030000 -Other Costs Bradley circuits to Bernice Lake $30,000.00 $ 1,264,017.00 O&M (non payroll)$914,417.00 transmission (non payroll}$349,600.00 $1,264,017.00 $1,904,869.68 $1,264,017.00 $3,168,886.68 Net he eee td Se,Neeley Bradley Lake Operations &Maintenance Budget Entry Page -CEA Payroll FY 2016 Budget ryCEA 562 -Station Expenses CEA SVC/Substation Maint.Contract Substation Lineman 80.12 390.00 OT Hours B Dbi Rate F Dbl Hours 122.16 440.00 Total costll $93,810.40 2|CEA 562 -Station Expenses CEA SVC/Substation Maint.Contract Ralay Technician 82.33 1,600.00 126.77 200.00 $158,042.00 §251,852.40 Bradley Lake Operations &Maintenance Budget Entry Page -CEA A/P &Other FY 2016 Budget 'Cost Type EES AP Detail Description Total Cost =m 1|CEA |562 -Station Expenses CEA SVC/Substation Maint.Contract 804020000 -Supplies &Materials Relay materials $85,000.00 4q 2|CEA |562 -Station Expenses CEA $VC/Substation Maint.Contract 802010000 -Travel Employee Travel $18,000.00 [ * 3|CEA |562 -Station Expenses CEA SVC/Substation Maint.Contract 803010000 -Cortractual Communication/SCADA $2,500.00 4)CEA [539 -Misc,Hydraulic Power Gen EXCEA Circuits -Bernice Lake to Anch 804030000 -Other Costs Bradley Circuits -Bernice Lake to Anch $28,746.00 [° 5]CEA 1562 -Station Exnenses CEA S$VC/Substation Maint.Contract 804020000 -Supplies &Materials Gereral SVC Repairs $10,000.00 q 6|CEA |562 -Station Expenses CEA SVC/Substation Maint.Contract 803010000 -Contractual Professional Services $4,000.00 7|_CEA |562 -Station Expenses CEA SVC/Substation Maint.Contract___[802010000 -Travel Employee Travel $8,000,00'| $156,246.00 $251,852.40 $156,246.00 $408,098.40 10 Bradley Lake Operations &Maintenance Budget Entry Page -Payroll FY 2016 Budget DnOn&WNHe7 Job Title ee,ST Rate a ST Hours a OT Rate !OT Hours f Dbl Rate f Db!Hours a Total Costaayatt Payroll PIS1AATOoONAOHbhwhaaeeeObBwWNPOoCost Type Ee AP Detad Description $ Bradley Lake Operations &Maintenance Budget Entry Page -AEA A/P &Other FY 2016 Budget Total Cost =m AEA |540-Rents Bradley Lake FERC land useFees [804930000 -Other Costs Bradley Lake FERC land use fees $183,000.00 AEA 15565 -System Control &Load DispatcliScS Snow Measurement 803010000 -Contractual SCS Snow Measurement $10,000.00 AEA 1556 -System Control &Load DispatcHUA Seismic monitoring/reporting |§803010000 -Contractual UAF Seismic monitoring and reporting $62,000.00 AEA [556 -System Control &Load DispatchHUSGS Stream gauging 803010000 -Contractual USGS Streamgauging $296,000.00 AEA {556 -System Control &Load DispatclState of Alaska Permits 803010000 -Contractual State of Alaska Permits $100.00 AEA {920 -Administrative Expense AEA Admin Fee 809010000 -Administrative expense AEA Bradley Fixed Admin Fees $200,000.00 AEA {920 -Administrative Expense Bradley Lake Audit fees 809010000 -Administrative expense -_jAudit fee §16,250.00 AEA [920 -Administrative Expense Bradley Lake PMC Legal 809010000 -Administrative expense Lagal fees $25,000.00 AEA |920 -Administrative Expense Bradley Lake Arbitrage Report 809010000 -Administrative expense _|Arbitrage fee $3,630.00 AEA 1920 -Administrative Expense Bradley Lake Trustee fees 809010000 -Administrative expense -_|Trust &Acccount fees $12,300.00 AEA |920 -Administrative Expense Bradley Lake Audit fees 803010000 -Administrative expense |j|Management audit $100,000.00 AEA [924 -Property Insurance Project Insurance Premiums 809010000 -Administrative expense Insurance Premiums $510,000.00 AEA |928 -Regulatory Commission Expens{FERC administrative fees 809010000 -Administrative expense -|FERC administrative fees $210,000.00 AEA [928 -Regulatory Commission Expens(FERC administrative fees 809010000 -Administrative expense -[FERC Part 12 Inspection (every 5 yrs,next 2021)|$55,000.00 AEA |928 -Regulatory Commissian Expens(FERC administrative fees 809910000 -Administrative expense {Contractual Engineer -FERC license issues $125,000.00 $ 1,808,280.00 HEA $3,168,886.68 CEA $408,098.40 AEA $=1,808,280.00 $5,385,265.08 11 Bradley Lake Project Management Committee Meeting Thursday,March 19,2015 Agenda Item:8B Amend the FY15 Bradley Lake budget to properly reflect the Transfer To(From) Operating Reserve from a negative to a positive $160,366 and increase the Interest Income by $408,510 to $1,859,550. =>fKCAMEFe MIT C 7?Weyr Hoge mMoTION:N@a--Euw)Shc.pelosEcTAa=e Move:C Lope Second:i [yfrt Bradley Lake Project Management Committee Meeting Thursday,March 19,2015 Agenda Item:8A of WM MOTION:Move that the Bradley Lake Project Management Committee approve the fiscal year 2016 Operating and Capital budget as presented. CH Oey _Move:Carrs.aoeVATAaa Second:Mace oneCoRaee ae, BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Alaska Energy Authority,Anchorage,Alaska January 23,2015 1.CALL TO ORDER Chair Borgeson called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 9:34 a.m. 2.ROLL CALL (for Committee members) Cory Borgeson (Golden Valley Electric Association [GVEA]);Sara Fisher-Goad (Alaska Energy Authority [AEA]);Brad Evans (Chugach Electric Association [CEA]);Joe Griffith (Matanuska »=Electric Association [MEA]);John Foutz (City of Seward [SEW]);Jim Trent (Anchorage ebuchiccilMunicipalLight&Powerr[MLP)),Brad J anorschke (Homer Electric Association (HEAD:3.--PUBLIC ROLL CALL (orall others resend .: :\i ;S |Bryan Carey,J ocelyn Gamer;Kelli Veech,Teri Webster (AEA);Brian Bjorkquist (AttomeyGeneral's Office [AGO});Steve Cannon,Burke Wick (C EA);Harvey.Ambrose,Rick Baldwin,Bob Day,Alan Owens (HEA);Jiim Brooks (MEA),Kirk Gibson (McDowell Rackner &Gibson);Lou Agi,Rick Miller,J eff Warner(MLP);Bernie Smith (Regulatory Commission of Alaska[RCA))Gary Dixon (Swalling &Associates);Miranda Studstill (Accu-Type Depositions);i \Participatingby phone:Shert MoKay-Higher (CEA);Patrick Dolan,Ron Woolf (GVEA)andEmilyHutchison(HEA).Now " ' 4.AGENDA COMMENTS/MOTION FOR APPROVAL Chair Borgeson requested switching the order of Item 7D.Battle Creek update with Item 7E. EPS -PSSE modeling,in order for Alan Owens to provide his reports consecutively. The agenda was approved as amended. 5.PUBLIC COMMENTS Mr.Smith informed the next RCA public meeting is January 28,2015,at 9:00 a.m.Item 4 on that agenda is a matter of appropriating scope for a regulations docket addressing electric transmission.All are invited and welcome. 6.APPROVAL OF PRIOR MEETING MINUTES-Nov.17,2014 MOTION:Mr.Foutz made a motion to approve prior meeting minutes of November 17, 2014.Motion seconded by Ms.Fisher-Goad. DRAFT BPMC Minutes 1/23/15 Page 1 of6 Mr.Janorschke will provide Ms.Webster with typo corrections in the minutes.He had no substantive corrections. The motion passed with the typo corrections. 7.NEW BUSINESS A.2014 Audit report and approval of refund (Action item) Mr.Dixon gave a detailed presentation on the audit report for the FY ending June 30,2014. There were no reportable findings,no substantive adjustments,and no disagreements within the audit.The two amounts that become payable back to the utilities are from the operating fund,of $1,134,386,and the refund on an annual basis from the R&C fund,of $279,247.The reduction of $99,459 relates to the amount that was pulled from the R&C fund in FY11,which was notconsistentwiththecalculation.The recommendation jis to get the numbers back iin ali gnment.This alignment nmakes the actual refund $179,787.f Coenen,opr &:MOTION:"Mr.'Griffith movedthatt Bradley Lake Project Management Committee acceptthefiscalyear2014AuditReport:and approve a refund of $1,314,173.86 ($1,134,385.87O&M and $179,787.99 R&C)to the utilities.;Motion'seconded ry Mr.Janorschke.\Sok <:The motion passed.A B.FYIS FirstQuarterreport Fo megeae ri |£\ChairBorgeson noted the FY]5 First Quarter report iiss included in.the Committee packet under7B,The Summary by Expense Type on pagethreeis in a 'new format.Mr.Woolf and Ms.Veech reviewed the FY15 First Quarterreport.The Other Costs number of $731,816 underAEAActualincludestheannualinsurancepremiumof$498,079,the Bradley Administrative Expense fee of $215,200,and the Regulatory Commission Expense total of $18,537. C.FY16 Preliminary Budget & D.EPS -PSSE modeling Mr.Owens covered both items 7C and 7D.He provided the Operator's Report to the Committee and gave an overview of the highlights.He noted the governor replacement was completed on August 22,2014,and there have been no incidents on the system since that time. Mr.Owens reported the anticipated final billing from EPS has been received for $71,000.This covers the final commissioning and testing of the PSSE model.Any future items on the PSSE or governor will be addressed separately.Chair Borgeson stated there are no objections to paying the final invoice. Mr.Owens informed the O&D Committee voted to recommend postponement of the Fish Water Screen Debris Removal Project until 2016.The lake level is currently 80 feet above the level needed to complete the work.The funds will be carried over from the 2015 budget to the 2016 DRAFT BPMC Minutes 1/23/15 Page 2 of6 budget.Mr.Owens does not believe any problems will occur by waiting one more year. Contingency and back-up plans are in place. Mr.Owens reviewed the Bradley Junction Switch Removal Project and noted the O&D Committee will report in detail on their findings.It was originally budgeted in 2014 and then moved to 2015.HEA is moving forward with the O&D recommendation to remove the Bradley Junction switches.The goal is to complete the project before June 30th,2015. Mr.Owens provided a broad overview of the FY16 preliminary budget,which includes capital improvement projects.The FY16 budget will be finalized at the next meeting. Ms.Fisher-Goad requested a description of the work to be completed on the Fish Water Debris Removal Project.Mr.Owens stated Global Diving is currently developing an alternative proposal to draining the lake that would utilize their clamshell equipment barge.Mr.Owens informed the likely approach for the completion of the work is to drain the lake down and remove the debris with heavy equipment.The condition of the screen will be then assessed and ®xthediversiontunnelwillbeinspected.If the lakeis drained,contingency plansare intended to.ensure the level will not go below the FERC fish 'water flows.Additional discussion and |consensus is necessary between FERC,Fish and Game,and the different departments regardingthis>project and the potential periods oof reduced fish water flow.Mr.:Cannon discussed the proposed projject,proposals,''costs,and timeline toreplace the 20--year-old SVCs at Dave's Creek and Soldotna.This project may,be spread over two fiscal years.Mr.Cannon provided a report including the last five years'of outages and labor.Mr.WickinformedthefundingoftheprojectthroughtheR&C still has to be.determined.|::\''Mr.Griffith asked how much transfer capacity is reduced when the SVC iis off.Mr.Cannoninformed57megawattscanbepushedwhenoneSVCisout._When both SVCs are out,35megawattscanbepushed.- Ms.Fisher-Goad asked if there is a budget breakdown of the cost estimate for the project.The $7.2 million estimated quote is for all the parts and the labor from ABB.There will be additional commission testing and work with the relay department which is not included in the $7.2 million. Chair Borgeson asked if this project can be bid to other vendors.Mr.Cannon advised this project can be bid to other vendors,but ABB will most likely have the lowest bid because it is an ABB system with matching engineering.Chair Borgeson asked if the project assets are Chugach assets or Bradley assets.Mr.Day informed the projects assets are Bradley assets.Mr. Bjorkquist stated the project assets are owned by AEA and always have been connected to the project. Mr.Janorschke requested to receive information at a future date regarding the financial impact to the utilities of the outages over the last five years.Mr.Wick noted the impact would be different going forward because historically,the line has not been operated as highly loaded as it is today. Each utility would have to determine its individual impact. DRAFT BPMC Minutes 1/23/15 Page 3 of6 Mr.Agi suggested an RFP be put out for this project.Mr.Cannon agreed. E.Battle Creek update Mr.Carey gave a detailed update on Battle Creek.He stated the proposed amendment to FERC could be submitted within the next couple of weeks.The preliminary design report was sent out to BPMC members in mid-December.Mr.Carey reviewed the construction cost estimate at approximately $50 million,including unlisted items,design contingencies,and construction management.The pipeline materials and installation are the most significant construction cost items.The expected average annual energy is 37,000 megawatt hours using one ac-ft equals one megawatt hour.Financing possibilities include commercial bonds at 5%for 20 years,with annual payments of $4.6 million,or a blending of 4%for 35 years,comprised of 50%RUS funding and 50%other funding,with annual payments of $2.9 million.The estimated timeline allows for diverting water in late 2017. F.Update on dispute resolution decision process Chair Borgeson informed the BPMC Dispute Resolution Committee has made a recommendation.No determination was made to submit formal notice of the recommendation, and no further action is anticipated at this time.Regulatory Commission hearings begin on February 20th,2015. G.Update on compliance to Resolution 2014-03 (Adoption of Railbelt Reliability Standards) Mr.Brooks advised the O&D Committee unanimously concluded there are no actionable items related to the HEA's published report.The O&D Committee recommends the compliance issue be tabled.Mr.Day explained the O&D Committee extensively reviewed the expensive compliance projects.Bradley has been operating successfully.The O&D concluded Bradley is "grandfathered"under the old set of standards and there is no imperative to modifying Bradley as it exists today.Mr.Day requested the Committee formally agree or disagree with the O&D's conclusion there are no actionable items. Mr.Griffith noted the Committee does not have the resolution wording at this meeting,and recommended reviewing the resolution criteria before a decision is made by the Committee. Chair Borgeson stated the issue and decision relating to Resolution 2014-03 will be on the agenda at the next meeting for formal action.Mr.Griffith agreed to review the resolution language. 8.COMMITTEE REPORTS -This was already covered in the meeting. 9.OPERATORS REPORTS Mr.Brooks commented on Mr.Cannon's previous discussion regarding the proposed project, proposals,costs,and timeline to replace the 20-year-old SVCs at Dave's Creek and Soldotna.He noted the O&D Committee intended to make the BPMC aware of their ongoing review of this project.Much of the information was not available until just prior to this meeting.The O&D DRAFT BPMC Minutes 1/23/15 Page 4 of6 Committee will collect more data and continue deliberations before a recommendation is given to the BPMC. Mr.Griffith requested additional information on project funding,with specific emphasis on the timeframe of four years rather than two years.Chair Borgeson noted the project should be financed over the greatest period of time possible. Chair Borgeson requested Mr.Gibson provide the report on the billing services.Mr.Gibson informed HEA sent out a notice regarding the transmission sharing agreement billing in November,which added an equitable amount of HEA's O&M and back-billed from 2011 through 2013.At the requested of BPMC,Mr.Gibson and Mr.Baldwin discussed this billing and have agreed to a short-term solution with respect to GVEA.GVEA paid the undisputed amount,and discussions are ongoing regarding the disputed portion. Mr.Woolf informed the Budget Committee will meet next week to review the budget format and determine what kinds of reports and how often these reports can be generated from this format:HeFequested the BPMC give him specific direction before the next week's meeting...Chair Borgeson «commented the BPMC iis trying to schedule meetings every other month anddoesnotwanttoincurabudgetcrunchwithAEAingettingthenoticingout.Chair BorgesonrequestedtheBudgetCommitteekeeptheissuemovingforwardonprovidingmonthlyfinancialreportsratherthanquarterlyfinancialreports,even though it will generate more work from AEA.He believes it is helpful to have the most current information at the BPMC meetings.ChairBorgesonnotedfortherecordhebroughthardcopypaperworktothemeeting,and Mr.GriffithandMr.Faust have electronic devices comparable to thei-Pad toaccess their information.Mr.Day informed a summary sheet ccomes with HEA's monthly operation billing,which showsthevariouscategories,including year-to--date budget and remaining budget.This can beprovidedtotheBPMC.Chair Borgeson agreed the summary sheet would be helpful.- 10.COMMITTEE ASSIGNMENTS None. 11,MEMBERS COMMENTS Mr.Janorschke expressed his appreciation to the O&D Committee and Budget Committee for their hard work. Mr.Griffith applauded the coordination efforts for the outages.He offered BPMC support in those efforts. Chair Borgeson expressed his appreciation to all the committees for their work and cooperation. He thanked Mr.Baldwin,Mr.Day,Mr.Ambrose,and the HEA staff for their work and effort at the remote site. DRAFT BPMC Minutes 1/23/15 Page 5 of6 12,NEXT MEETING DATE The next meeting date is set for March 19th,2015,at 9:30 a.m. 13.ADJOURNMENT There being no further business for the committee,the meeting adjourned at 11:18 a.m. BY: Cory Borgeson,Chair Attest: Sara Fisher-Goad Alaska Energy Authority,Secretary sttogenneeeeaDRAFT BPMC Minutes 1/23/15 Page 6 of 6 BRADLEY LAKE HYDROELECTRIC PROJECT PROJECT MANAGEMENT COMMITTEE Resolution 14-11 RESOLUTION RESOLVING THE DISPUTED ISSUES BETWEEN THE DESIGNATED UTILITIES AND HOMER ELECTRIC ASSOCIATION,INC. Table of Contents I SUMMARY .......ccccssssessccssscecccesesceeseesecceeesceeseesceeaeeaeeeeseesseesseaeesseeseescessessesaeeaeeeeeaeeenersaes 2 Tl.BACKGROUND ......cieeceesccseceescesseeerseeeeaceneesccsceecesesenesseeceesaeeseseaceneesseeaesaesseeneeeaseaeesees 3 Ill.THE PARTIES'POSITIONS...cccesscsscsscesscescescesecceessccsseesccessescceeeceeesceaseseeseeeeeeeeerees 7 A.HEA'S PoSition 0.0...eee eeeesseesseceesseesscceseessscesesescssecoosssesssaeceseasosaeesesascssecesesassnessoeeseaees 7 B.The Designated Utilities'Position 0...eee ceneeseeeseeseenereeesneesseseesscaesseeseeseseanecsees 8 IV.FINDINGS OF FACT AND CONCLUSIONS OF LAW...cceecceecseceeeseeeeececeeeeeeneeesens 10 A.The Disputed Issues Arise under the Bradley Lake Agreement ............csesccesceseeesseseeseesesseeeeenersccnessssesdcaesseerecesesssessesecscerseesesneenese 10 B.The BPMC Has Authority to Consider and Resolve Issues Arising Under the Bradley Lake Agreements ......0......sc esceseeessesseeeeesceeeeeeteneees 10 C.The Bradley Lake Agreements Were Not Modified, Amended,or Terminated By the Expiration of the Lease and Chugach Is Still Entitled to Operate, Maintain,Repair,Dispatch,and Wheel Project Energy Over the S/Q Lime oo...eeeeececcsscceeseccsecessceecseecsacesscesenseeecsesessneeeesesesanessaeeensesesesesagerseees 13 D.HEA Will Be Permitted Some Additional Compensation for the Use of Its System Associated With the Transmission of Project Energy North of the Soldotna Substation...eeeseeseeeceseeeeeneeeaceseenes 15 V.RESOLUTION .0...ecceccccsscsscessesecenccereeceeceetaesececessceseseseeseescecsseaceeaeeaeeseeseeeaeeaaensenaceesenaeens 18 30 Resolution 14-11 Resolving Dispute between Utilities Page 1 of 18 BY THE BPMC: I.SUMMARY On February 7,2014,we found that this Bradley Lake Project Management Committee ("BPMC”)has authority to consider and decide on their merits the disputed issues between the Designated Utilities!and Homer Electric Association,Inc.("HEA”),regarding the continuing effect of the Bradley Lake Agreements and bonding documents?after the expiration of the Lease? and whether HEA is entitled to any additional compensation for Chugach's continued use of certain electrical facilities north of the Soldotna Substation for the purpose of wheeling energy from the Bradley Lake Hydroelectric Project ("Project”)under the terms of the Bradley Lake Agreements.'Our analysis in support of our finding on authority is contained herein. Now,after having provided all parties with the opportunity to fully advance evidence,and brief and argue their positions with regard to the disputed issues,we find that (1)the Bradley Lake Agreements were not modified,amended,or terminated by the expiration of the Lease;(2)the Chugach Electric Association,Inc.("Chugach”),Golden Valley Electric Association, Inc.("GVEA”),Matanuska Electric Association,Inc.("MEA”),and the Municipality of Anchorage d/b/a Municipal Light &Power ("ML&P”). 2 The Bradley Lake Agreements include (1)the Agreement for the Sale and Purchase of Electric Power ("Power Sales Agreement”),(2)the Agreement for the Wheeling of Electric Power and for Related Services ("Services Agreement”),(3)the Agreement for the Sale of Transmission Capability,dated December 8,1987,and the Amendment to Agreement for Sale of Transmission Capability,dated March 7,1989 ("Transmission Sharing Agreement”)(hereinafter "Bradley Lake Agreements”or "Agreements”);and (4)Alaska Power Authority Power Revenue Bond Resolution ("Bond Resolution”). Agreement for the Lease of Facilities,executed by and between Chugach and HEA in September 1985. 4 See Transcript of February 7,2014,BPMC Meeting at 104:15-106:6. Resolution 14-11 Resolving Dispute between Utilities Page 2 of 18 Bradley Lake Agreements continue to provide Chugach with the contractual right and obligation to operate,maintain,repair,dispatch,and wheel Project energy over the electrical facilities owned by HEA from the Soldotna Substation north to the Quartz Creek Substation;and (3)HEA is being adequately compensated for Chugach's continuing operation,maintenance,repair,dispatching, and wheeling of Project energy over the electrical facilities owned by HEA from the Soldotna Substation north to the Quartz Creek Substation but will receive additional compensation as a reasonable resolution of the disputes.° II.BACKGROUND The Project was made possible through a series of integrated contracts referred to as the Bradley Lake Agreements and bonding covenants.Under the Bradley Lake Agreements,among other things,power is sold and transmitted from the Project across Project facilities to the Bradley Junction,where it then enters the transmission system of Alaska Electric and Energy Cooperative, Inc.("AEEC”),°a wholly owned HEA asset.From Bradley Junction,Project energy flows north along AEEC's transmission line running from Bradley Junction to the Soldotna Substation ("Soldotna Segment').The transmission of Project energy across the Soldotna Segment is governed by the Transmission Sharing Agreement.Under the Transmission Sharing Agreement, Chugach,GVEA,ML&P,and MEA contributed to the cost of constructing the Soldotna Segment in exchange for secure transmission capacity on the Soldotna Segment. HEA raised other technical disputes regarding Chugach's performance under the Bradley Lake Agreements in HEA's Statement Regarding Dispute Resolution Procedures filed with the BPMC on January 23,2014.Those disputes are not addressed in this Resolution and will be considered and resolved by the BPMC through a separate resolution. A single-member generation and transmission cooperative owned by HEA. Resolution 14-11 Resolving Dispute between Utilities Page 3 of 18 From the Soldotna Substation,Project energy then flows north through AEEC's transmission line running from the Soldotna Substation to the Quartz Creek Substation ("S/Q Line”).For the past 25 years,Chugach has operated,maintained,repaired,dispatched,and wheeled Project energy north of the Soldotna Substation through certain electrical facilities, including the S/Q Line,pursuant to the Services Agreement,'which continues in effect for another 25 years.®There is no provision in the Services Agreement that refers to the Lease or that suggests the expiration of the Lease will impact the rights and obligations of any party to the Services Agreement or any of the Bradley Lake Agreements. The Lease was associated with Chugach's wholesale power sales to HEA,and the Lease expired on January 1,2014.°HEA believes that,when the Lease expired on January 1,2014, Chugach lost the right and the obligation to operate and maintain the electrical facilities north of the Soldotna Substation owned by HEA (including the S/Q Line).The Designated Utilities disagree.The Designated Utilities believe that,despite the expiration of the Lease,the Services Agreement provides Chugach with the right and the obligation to operate and maintain all electrical facilities north of the Soldotna Substation used to wheel Project energy (including the S/Q Line). On December 12,2013,the BPMC passed Resolution 2013-02,preliminarily finding that the disputed issues are within the BPMC's authority to resolve and beginning the dispute resolution process by appointing a Dispute Resolution Committee to address the disputed issues raised by HEA and the Designated Utilities.The Dispute Resolution Committee scheduled and held five 7 See Services Agreement at 7-8. 8 See Services Agreement at 3,28-29. 9 See Lease at 2. Resolution 14-11 Resolving Dispute between Utilities Page 4 of 18 meetings at the offices of the Alaska Energy Authority ("AEA”)to address the issues identified in BPMC Resolution 2013-02.'°On January 24,2014,the Dispute Resolution Committee asked all interested parties to file briefs addressing three issues:(1)whether the BPMC has the authority to address the underlying disputed issues;(2)whether Chugach has the right and obligation to continue operating,maintaining,and repairing the electrical facilities used to wheel Project energy from the Soldotna Substation north under the terms of the Services Agreement;and (3)whether HEA is entitled to any additional compensation for Chugach's continuing use of certain of HEA's electrical facilities north of the Soldotna Substation used for wheeling Project energy. On January 27,2014,the BPMC passed Resolution 2014-02 requiring that "[a]ll Project participants shall act in good faith to maintain the status quo and permit Chugach to continue to dispatch,operate,maintain,and repair,the S/Q Line under the terms of the Services Agreement and the other Bradley Lake Agreements during the pendency of the dispute.”On February 4,2014, the Designated Utilities!!and HEA”both filed briefs addressing the issues identified in Resolution 2013-02.On February 7,2014,based upon consideration of the arguments presented by both the Designated Utilities and HEA,the BPMC found that it has authority to consider and decide the disputed issues on their merits.!?The supporting analysis for the BPMC's decision on authority is detailed below.On April 11,2014,the Dispute Resolution Committee made specific findings regarding the disputed issues in Resolution 14-09.Those findings have been considered by the 10 Those meetings were held on the following dates:January 24,2014;January 27,2014; February 7,2014;April 11,2014;and April 17,2014. Designated Utilities'Brief on Disputes with Homer Electric Association,Inc. ("Designated Utilities'Br.”). Position Statement of Homer Electric Association,Inc.("HEA's Br.''). 13 See Transcript of February 7,2014,BPMC Meeting at 104:15-106:6. Resolution 14-11 Resolving Dispute between Utilities Page 5 of 18 BPMC and are incorporated into the findings in this Resolution.On April 17,2014,the Dispute Resolution Committee passed Resolution 14-10 declaring that the parties had reached an impasse and recommended that the BPMC move forward with formal dispute-resolution procedures.On April 17,2014,the BPMC approved the Dispute Resolution Committee's Resolutions 14-09 and 14-10.Now,in accordance with the dispute-resolution obligations under the Services Agreement and the BPMC's Bylaws,the BPMC has determined to decide the disputed issues on their merits.!4 '4 Certain matters were referred to the Bradley Lake Operations and Dispatch Committee ("O&D Committee”).The technical and operational information provided by the O&D Committee in response has been duly considered by the BPMC and is incorporated into this Resolution. Resolution 14-11 Resolving Dispute between Utilities Page 6 of 18 Ii.THE PARTIES'POSITIONS A.HEA's Position. HEA asserts that the BPMC does not have the authority to consider or decide the disputed issues on their merits.!>HEA further asserts that the BPMC's authority derives from the Power Sales Agreement and that the Power Sales Agreement does not give the BPMC authority to resolve the underlying disputed issues.'®Specifically,HEA argues that the BPMC does not have the authority to consider or resolve the issue of compensation to HEA for wheeling Bradley power.'' HEA argues that "[nJo provision in any of the [Bradley Lake Agreements]speaks to”the compensation issue.'*Instead,HEA states that the ultimate decision regarding compensation will be made by the Regulatory Commission of Alaska ("RCA”)or by a court.!° Moreover,HEA's position is that Chugach's right to access and transmit Project energy over HEA's facilities arose entirely from the Lease,not the Bradley Lake Agreements.??HEA asserts that the "expiration of both the [Lease]and the HEA-[Chugach]power sales agreement” terminated Chugach's right to receive power at HEA's Soldotna Substation and to operate any of HEA's transmission facilities.21 HEA explains that upon the expiration of the Lease,HEA began operating as an independent load-balancing authority and assumed the responsibility of providing 15 See HEA's Br.at 2. 16 See HEA's Br.at 2. 17 See HEA's Br.at 2. 18 HEA's Br.at 2. 19 HEA's Br.at 2. 20 See HEA's Br.at 3. 21 HEA's Br.at 3. Resolution 14-11 Resolving Dispute between Utilities Page 7 of 18 transmission services between Bradley Junction and Quartz Creek.””Finally,HEA argues that the Services Agreement does not require HEA to maintain the December 31,2013,status quo.?? B.The Designated Utilities'Position. The Designated Utilities assert that the disputed issues arise out of the Bradley Lake Agreements,and the status quo must be maintained until the disputes are resolved.74 The Designated Utilities argue that the BPMC has the authority to consider and decide the disputed issues on their merits.Specifically,the Designated Utilities argue that the Power Sales Agreement creates and defines the BPMC's broad rights and obligations with respect to the management, operation,and improvement of the Project,and the Power Sales Agreement requires the BPMC to adopt procedures for resolving disputes that arise under the Bradley Lake Agreements.?>The Designated Utilities assert that,pursuant to the Power Sales Agreement,the BPMC adopted the Bradley Project Management Committee Bylaws ("Bylaws”),which contain specific procedures for dispute resolution.2°The Designated Utilities further argue that the Bylaws'dispute-resolution procedures give the BPMC the authority to decide,on their merits in accordance with Article 12 and Section 5.10 of the Bylaws by majority vote,those issues the BPMC determines are within its authority to consider.””?The Designated Utilities point out that the Services Agreement similarly provides that all disputes arising thereunder are subject to resolution in a manner consistent with 22 See HEA's Br.at 4. 23 See HEA's Br.at 4. *4 See Designated Utilities'Br.at 1-7;see also Tr.67:18-24 (Feb.7,2014,Dispute Resolution Committee Meeting). 25 See Designated Utilities'Br.at 6. 26 See Designated Utilities'Br.at 6. 27 See Designated Utilities'Br.at 6. Resolution 14-11 Resolving Dispute between Utilities Page 8 of 18 the BPMC's adopted dispute-resolution procedures.”®The Designated Utilities,therefore, conclude that pursuant to the Power Sales Agreement,the Bylaws,and the Services Agreement, the BPMC has the authority to (1)determine whether it has authority to consider the disputed issues,and (2)to resolve,on their merits by a majority vote,those issues the BPMC determines are within its authority to resolve.”” Moreover,the Designated Utilities argue that the Services Agreement and the Lease are unrelated agreements and that the termination of the Lease did not terminate Chugach's rights and obligations under the Services Agreement to operate,maintain,and repair the electrical facilities north of the Soldotna Substation,including the S/Q Line,for wheeling Project energy.2°The Designated Utilities assert that Chugach's rights and obligations with regard to the S/Q Line are governed by the Services Agreement,not the Lease.?!Further,the Designated Utilities assert that HEA has been and is still being fairly compensated for the use of its facilities to wheel Project energy north as a part of the "net economic benefits”all Project Participants recognized and receive under the Bradley Lake Agreements.°? 28 See Designated Utilities'Br.at 6. 29 See Designated Utilities'Br.at 6-7. 30 See Designated Utilities'Br.at 2-5. 31 See Designated Utilities'Br.at 2-5. 32 See Designated Utilities'Br.at 7. Resolution 14-11 Resolving Dispute between Utilities Page 9 of 18 IV.FINDINGS OF FACT AND CONCLUSIONS OF LAW A.The Disputed Issues Arise Under the Bradley Lake Agreements. The BPMC finds that the disputed issues between the Designated Utilities and HEA are essentially a disagreement over Chugach's and HEA's relative rights and obligations with regard to electrical facilities owned by HEA and operated by Chugach to dispatch and wheel Project energy under the Services Agreement.The BPMC finds that this dispute is governed by the terms of the Services Agreement and the Bradley Lake Agreements.Further,the BPMC finds that there exists a dispute as to whether HEA is entitled to any additional compensation for the use of HEA's electrical facilities north of the Soldotna Substation for wheeling Project energy.The BPMC finds that this dispute is also governed by the terms of the Services Agreement and the other Bradley Lake Agreements. B.The BPMC Has Authority to Consider and Resolve Issues Arising Under the Bradley Lake Agreements. Upon consideration of the Bradley Lake Agreements,the Bylaws,and the arguments put forth by both the Designated Utilities and HEA,the BPMC finds that it has authority to consider and resolve the disputed issues on their merits by a majority vote.**The BPMC finds that the disputed issues between the Designated Utilities and HEA concern Chugach's continuing contractual rights and obligations to operate,maintain,repair,dispatch and wheel Project energy over the electrical facilities north of the Soldotna Substation and are within the BPMC's authority to address and resolve under both the Power Sales Agreement and the Services Agreement. 33,If the resolution of such a dispute also involves an amendment to any of the Bradley Lake Agreements,then such an amendment would also have to be made consistent with the language for amendment of the Bradley Lake Agreements. Resolution 14-11 Resolving Dispute between Utilities Page 10 of 18 The Power Sales Agreement and the Services Agreement place a broad range of rights and obligations upon the BPMC.**Section 13(c)of the Power Sales Agreement requires the BPMC to oversee the "management,operation,maintenance,and improvement”of the Project and requires the BPMC to "[a]rrange for the operation and maintenance of the Project,and the scheduling,production,and dispatch of Project power.”This language requires the BPMC to address operation and management issues as well as issues associated with the scheduling and dispatch of power.The current disputes between the Designated Utilities and HEA concern each of these areas of the BPMC's authority.Further,Section 13(b)requires the BPMC to adopt "procedural rules”for "dispute resolution.” Similarly,Section 10(b)of the Services Agreement expressly incorporates and designates the BPMC as the entity responsible for resolving disputes under the Services Agreement. Specifically,the Services Agreement provides: At the meetings referred to in Section 10(a),the Parties shall also review performance under this Agreement,including difficulties encountered under the Agreement by any of the Parties and allegations (if any)of failure of any Party to perform the Agreement in good faith in accordance with its terms or intent. The Parties agree that any further procedures for dispute resolution under this Agreement shall be entrusted (if the Authority concurs)to good faith negotiation and adoption by the [BPMC],with Chugach's affirmative vote required for adoption of such procedures.** This language requires the BPMC to address difficulties encountered with,and the failure of any Party to perform in accordance with,the terms of the Services Agreement.The current disputes between the Designated Utilities and HEA concern each of these areas of the BPMC's authority. 34 See Power Sales Agreement at 19-23;see also Services Agreement at 18. 35 Services Agreement at 18. Resolution 14-11 Resolving Dispute between Utilities Page 11 of 18 The BPMC's authority over the issues in dispute between the Designated Utilities and HEA is also consistent with the exemption of the Bradley Lake Agreements from any regulatory oversight under AS 42.05.431(c).Absent such an exemption,the rights and responsibilities of utilities over electrical facilities and rates would be resolved by the RCA.In the case of the Bradley Lake Agreements,however,the Legislature exempted all such matters from the RCA and permitted them to be addressed and resolved by the industry through the specialized experience and expertise of the BPMC. This ruling on the authority of the BPMC is required under Article 12 of the Bylaws entitled "Procedures for Dispute Resolution.”Article 12.2 of the Bylaws states that "in the event the authority of the [BPMC]to act is at issue,the [BPMC]shall first make a finding as to its authority.” Once such a finding is made,the BPMC has the authority to decide,on their merits,those issues the BPMC determines are within its authority to consider.Finally,with regard to these particular disputes,Article 5.10.2 of the Bylaws provides that "the act of a majority of votes taken during a meeting at any time when a quorum is present,shall be an act of the [BPMC],and binding on the members.”°° The BPMC,therefore,concludes that (1)the disputed issues between the Designated Utilities and HEA arise under the Bradley Lake Agreements;and (2)the Power Sales Agreement, the Services Agreement,and the Bylaws provide the BPMC with the authority and the responsibility to resolve the disputed issues between the Designated Utilities and HEA. C.The Bradley Lake Agreements Were Not Modified,Amended,or Terminated by the Expiration of the Lease,and Chugach Is Still Entitled to Operate, Maintain,Repair,Dispatch,and Wheel Project Energy Over the S/Q Line. 36 Emphasis added. Resolution 14-11 Resolving Dispute between Utilities Page 12 of 18 Upon consideration of the Bradley Lake Agreements and the evidence and arguments put forth by both the Designated Utilities and HEA,the BPMC finds that Project energy enjoys priority status for transmission services from the Project north to the Project Participants.The expiration of the Lease did not modify,amend,or terminate the Services Agreement or the priority status that Project energy enjoys thereunder.Instead,transmission services across the S/Q Line continue to be governed by the Services Agreement.The Services Agreement requires Chugach to operate,maintain,repair,dispatch and wheel Project energy over the electrical facilities from the Soldotna Substation north.*”And,the Services Agreement requires Chugach to perform those 38servicesfor50years.°”The shorter term of the Lease is never mentioned in the Services Agreement.°?Significantly,the Services Agreement does not limit Chugach's rights or obligations to operate,maintain,repair,dispatch and wheel Project energy over HEA's facilities north of the Soldotna substation to the term of the Lease.Instead,the Services Agreement requires Chugach to exercise such rights and obligations throughout the 50-year term of the Services Agreement without any qualification or limitation relating to the Lease.Notably,the Services Agreement was executed two years after the Lease.*”Thus,if the parties had intended that the expiration of the Lease would terminate Chugach's rights and obligations under the Services 37 See Services Agreement at 2 ("At the request of any Wheeling Utility,Chugach will provide wheeling,storage,and energy purchase services to such Utility for that Utility's Bradley Lake Energy in accordance with the provisions of this Agreement.”);see also Services Agreement at 7-8 ("Chugach will in good faith and at all times:...operate, maintain,and repair the electrical facilities used to perform the services provided hereunder....”). 38 See Services Agreement at 3,28-29. 39 The Lease expired on January 1,2014.See Lease at 2. 40 The Lease was approved by the Commission in Order U-85-013(3),June 4,1985.The Services Agreement was executed on Dec.8,1987.Services Agreement at 1. Resolution 14-11 Resolving Dispute between Utilities Page 13 of 18 Agreement,they would have expressly qualified or limited those rights and obligations to the term of the Lease.Further,such a limitation would not be reasonable to imply,given the Services Agreement's express requirement that Chugach operate,maintain,repair,dispatch and wheel Project energy over HEA's facilities north of the Soldotna substation for 50 years,the length of time the bonds would be outstanding.Finally,GVEA,MEA,and ML&P were not parties to the Lease between Homer and Chugach and,thus,expiration of the Lease could not be deemed to affect GVEA's,MEA's,and ML&P's rights under the Services Agreement. Additionally,the Services Agreement can only be amended,renegotiated,or terminated at an earlier date by unanimous agreement.*!As such,the Chugach delivery point for Project energy may only be changed from the Soldotna Substation to the Quartz Creek Substation as a "successor facility”through the "written consent of all Parties.”"4 HEA's attempts to unilaterally terminate, amend,or renegotiate the Services Agreement through its Tariff Filings and actions impeding Chugach's ability to operate,maintain,repair,dispatch and wheel Project energy over the S/Q Line are improper. The BPMC,therefore,concludes that the expiration of the Lease,which was neither referenced in nor related to the Bradley Lake Agreements,does not affect the continuing rights and obligations under the Services Agreement or the priority status Project energy enjoys thereunder. Instead,HEA must act in good faith to honor its commitments under the Services Agreement and allow Chugach to continue operating,maintaining,repairing,dispatching,and wheeling Project energy over HEA's facilities north of the Soldotna Substation. 41 See Services Agreement at 3-4. 42 See Services Agreement at 3.As the Designated Utilities point out,at least ten sections of the Services Agreement would have to be amended in order to effectuate such a change in delivery point.See Designated Utilities'Br.at 2,n.5. Resolution 14-11 Resolving Dispute between Utilities Page 14 of 18 D.HEA Will Be Permitted Some Additional Compensation for the Use of Its System Associated With the Transmission of Project Energy North of the Soldotna Substation. The BPMC finds that the parties to the Services Agreement and the Transmission Sharing Agreement anticipated that the Project would produce "net economic benefits”for all the parties,including HEA.**Specifically,all parties received the benefit of being able to purchase cheap power from the Project.Further,HEA received contribution from the other Project Participants to build the Soldotna Segment.**HEA was designated as the operator of the Project and receives compensation for its services provided as such.HEA's system is more reliable as a result of having the Project located on the southern edge of HEA's system.HEA receives the ongoing benefit of Chugach operating and dispatching Project energy at less than Chugach's actual costs of providing such services.And,HEA is benefited as a result of its right to pay for the scheduled dispatch of its Project power on an energy-delivered basis as opposed to an energy- reserved basis.The BPMC finds that,in exchange for those benefits,HEA committed its system to be used for the transmission of Project energy to the Project Participants in accordance with the Bradley Lake Agreements.Thus,HEA is adequately compensated under the Bradley Lake Agreements for the use of HEA's system and is entitled to no additional compensation. Nonetheless,in the interest of reaching a resolution among the Project Participants,the BPMC orders that HEA is to receive additional payments from the other Project Participants for the continuing use of HEA's facilities north of the Soldotna Substation throughout the term of the Services Agreement.While HEA is not entitled to any additional compensation under the controlling Bradley Lake Agreements,the BPMC holds that permitting HEA some additional 43°Services Agreement at 1;Transmission Sharing Agreement at 1. 44 Transmission Sharing Agreement at 2-3. Resolution 14-11 Resolving Dispute between Utilities Page 15 of 18 compensation would be the most efficient and reasonable resolution of the disputes.Such a resolution,while providing HEA with additional compensation,preserves the structure and terms of the Bradley Lake Agreements by maintaining and continuing Chugach's responsibility and obligation to operate,maintain,repair,dispatch,and wheel Project energy over HEA's facilities north of the Soldotna Substation.Such a resolution also provides the most efficient continuing means to dispatch Project energy to the Project Participants. The amount of additional compensation shall consist of both a fixed and a variable component.The fixed component is to be an amount of Three Hundred Thousand Dollars ($300,000)per year,which provides additional compensation to HEA to resolve the disputes concerning the Project Participants'continuing use of HEA's transmission facilities from the Soldotna Substation north under the Bradley Lake Agreements.The variable component is to consist of reasonable costs incurred by Chugach in fulfilling its responsibilities under the Services Agreement to maintain and repair HEA's transmission system from the Soldotna Substation north when such maintenance is performed by or through HEA's own efforts.Chugach has the continuing obligation under the Services Agreement to authorize and approve all such variable maintenance costs.Such fixed and variable amounts are consistent with the maximum compensation HEA has recovered historically from Chugach through the formula elements set forth in the Bradley Lake Agreements and represent a reasonable remedy under the circumstances of these disputes.These fixed and variable payments are effective and required from January 1, 2014,until the expiration of the Services Agreement. Resolution 14-11 Resolving Dispute between Utilities Page 16 of 18 Vv.RESOLUTION THE BPMC FURTHER RESOLVES: 1.As discussed in the body of this Resolution,the BPMC has the jurisdiction and obligation to resolve the disputes at issue. 2.As discussed in the body of this Resolution,the expiration of the Lease had no effect on the operation of the Services Agreement. 3.As discussed in the body of this Resolution,Chugach will continue to operate in accordance with the rights and obligations agreed to in the Services Agreement.Accordingly, Chugach will continue to operate,maintain,repair,dispatch,and wheel Project energy over HEA's facilities north of the Soldotna Substation in accordance with the terms of the Services Agreement. 4.As discussed in the body of this Resolution,HEA is violating BPMC Resolution 14-02 by not maintaining the status quo while this dispute is being resolved by the BPMC. 5.HEA shall take all reasonable steps to provide Chugach with the information and physical capability (where HEA cooperation is needed)to continue to perform its responsibilities in the same manner as Chugach did prior to January 1,2014. 6.HEA shall act in good faith to provide such cooperation as Chugach may from time to time request to allow Chugach to fulfill its responsibilities to operate,maintain,repair,dispatch, and wheel Project energy over HEA's facilities north of the Soldotna Substation under the Services Agreement,as those responsibilities have been clarified in the body of this Resolution. 7.HEA shall amend its tariff filings designated TA355-32 and TA356-32 ("HEA's Tariff Filings”)with the RCA to expressly provide that HEA's Tariff Filings shall not apply to any and all services or rates covered by the Bradley Lake Agreements,as those services and rates have been interpreted and more fully identified in the body of this Resolution.Additionally,such amendment shall specifically and expressly provide that (a)HEA's Tariff Filings shall not apply Resolution 14-11 Resolving Dispute between Utilities Page 17 of 18 to any services associated with the transmission of Project energy;(b)HEA's Tariff Filings shall not affect the priority status that Project energy currently enjoys under the Bradley Lake Agreements;and (c)HEA's Tariff Filings shall not apply to or require compensation for the use of HEA's facilities associated with the transmission of Project energy.HEA shall file such an amendment to its Tariff Filings in accordance with this Resolution of the BPMC within 15 days from the date of this Resolution. 8.HEA is to submit its request for variable component cost recovery to the BPMC in accordance with terms announced in section IV.D.of this Resolution within 15 days from the date of this Resolution. 9.Chugach is to submit appropriate payments to HEA,consistent with compensation terms announced in section IV.D.of this Resolution,within 30 days of the date of this Resolution. 10.All parties are entitled to seek immediate judicial enforcement of the terms of this Resolution before the Superior Court for the State of Alaska,Anchorage District. DATED AND EFEEG@INE this_Y_day of _M\aay ,2014.ERG Y Auy.",} >x.wentteee,!"hpFXgnroRay5%-=FAIA eww C1523!SBAr i3:ny PxobhorE cant3¢*.S :Evans %e 1)Phd =in197%,s hair Ay ey,reaslal-Qad_Sara Fisher-Goad Secretary Resolution 14-11 Resolving Dispute between Utilities Page 18 of 18 HOMER ELECTRIC ASSOCIATION,INC. STATEMENT REGARDING DISPUTE RESOLUTION PROCEDURES Homer Electric Association,Inc.("HEA”)as a member of the Bradley Lake Project Management Committee ("BPMC”),has participated in the adoption of certain dispute resolution procedures pursuant to Section 10(b)of the Agreement for the Wheeling of Electric Power and for Related Services ("Services Agreement”)and Section 14 of the Amendment to Agreement for Sale of Transmission Capability ("Transmission Agreement”).The process for identifying disputes to be treated with under the procedures is unclear,and HEA is unsure of the scope of the issues that are intended to be addressed by the BPMC. HEA recognizes the value of attempting to resolve issues informally,and is willing to participate in the dispute resolution process in an effort to minimize unnecessary and counterproductive strife.For the avoidance of doubt,however,by its participation in the dispute resolution process,HEA does not thereby agree that the BPMC has the contractual authority to resolve,or even consider,some or all of the issues identified by the participants in the process, including those set forth in Resolution No.2013-02,nor does HEA acknowledge that the allegations in the resolution or which may be otherwise identified even give rise to bona fide disputes.HEA reserves the right to have any dispute that may arise in the context of the BPMC dispute process resolved by the appropriate judicial or regulatory authority. STATEMENT OF DISPUTES Services Agreement.Section 10(b)of the Services Agreement limits dispute resolution to matters involving "performance under (the)Agreement.”HEA has identified certain disputes that arise under the specific terms of the Services Agreement and they are as follows: Services Agreement,Section 8 Performance Failures Section 8(a)(i)requires the Dispatcher to "(dispatch)power generation at the Bradley Lake Project in accordance with the requests of the Parties,...and the applicable operating criteria or guidelines adopted by the Project Management Committee.”The BPMC has adopted Allocation and Scheduling Procedures (Procedures)for the Project as the applicable operating criteria or guidelines.With respect to its obligations under Section 8(a)(i)and the Procedures the Dispatcher has failed to perform as follows: 1.In violation of Sections 5(b),(c),(d),(e),(),and (g)of the Procedures the Dispatcher routinely utilizes energy from the Project to regulate Fire Island Wind (FIW)output. 2.The Project has spilled water in each of the past two years as a direct result of both action and inaction on the part of the Dispatcher as follows: a.Acting in violation of Section 5(h)of the Procedures,the Dispatcher used the Project to load-follow its own system rather than dispatching the Project to prevent spill and imminent spill conditions. .Acting in violation of Section 5(j)of the Procedures,the Dispatcher scheduled its share of Project capacity to load-follow its own system rather than scheduling its share to prevent spill and imminent spill conditions.Further,the Dispatcher failed to mitigate the adverse effects on the Project in scheduling extensive outages in performing maintenance and repairs on its transmission system. .In violation of Sections 5()of the Procedures the Dispatcher failed to notify Participants of Capacity and Energy to be made available to them at no cost under section 5(h)of the Procedures,as a result of its and other Participants'inability or refusal to take their fully allocated shares of energy during imminent and actual Spill conditions,thus extending and exacerbating the amount of and the duration of spill and imminent spill. 3.The Dispatcher is violating Section 5(g)of the Procedures by routinely loading Project generation units to levels well in excess of its own share,and failing to provide an accounting proving whether or not it has thereby effectively taken Project Capability belonging to other Participants. 4.The Dispatcher is violating Section 5(g)of the Procedures by routinely loading Project units to levels well in excess of its own share,to the extent that spin carried on Bradley at the time is being used by the Dispatcher to provide real energy,and failing to provide an accounting proving whether or not such loading has effectively taken Project Spin Capability belonging to other Participants,thereby potentially leaving the system deficient in spin. 5.The Dispatcher is violating Section 5(b)of the Procedures by failing to publish the week- ahead,hour by hour schedule of Bradley output. Section 8(a)(iv)of the Services Agreement requires the Dispatcher to "(coordinate)with HEA in order that the Dispatcher and HEA alike will minimize,to the extent reasonably practicable,any potential conflicts between and among (A)HEA's system operations,(B)Chugach's system operation,and (C)the dispatch of Project generation and the provision of services to the Wheeling Utilities ...” With respect to its obligations under Section 8(a)(iv)the Dispatcher,in violation of Sections 5(b),(c),(d),(e),(f),and (g)of the Procedures the Dispatcher continuously fails to adhere to the wheeling schedule it provides to HEA. STATEMENT Page 2 Transmission Agreement.Section 14 of the Transmission Agreement provides for dispute resolution of matters "under (the)Agreement.”HEA has identified certain disputes that arise under the specific terms of the Transmission Agreement and they are as follows: Transmission Agreement,Section 3(b)Performance Failures Section 3(b)of the Transmission Agreement provides that HEA shall be compensated for line losses resulting from the flow of Bradley Lake power over the Soldotna Segment and requires the BPMC to determine the amount of line losses and the appropriate amounts and manner of compensation. With respect to their obligations under Section 3(b)of the Transmission Agreement the Purchasers,through the BPMC,have failed to perform as follows: 1.The Purchasers through the BPMC have violated Section 3(b)of the Transmission Agreement by failing to act upon HEA's request of January,2012 to review and correct Loss Tables for the Soldotna Segment. 2.The Purchasers through the BPMC,despite repeated requests from HEA to the Project Dispatcher,have refused to provide the technical calculations underlying the Loss tables for the Soldotna Segment currently in use. 3.The Purchasers through the BPMC have failed to review and update Loss calculations for the Soldotna Segment as required under Section 8(c)of the Procedures. Dated at Kenai,Alaska,this 23 day of January,2014. Bradley P.Janorschke General Manager STATEMENT Page 3 vF Bradley Repeater &Antenna Description John Lynn March 2015 DNR Forestry needs to install a repeater to support wild land firefighting in a location that will cover Homer East End Road.The Division of Forestry "DOF”expects that the next large fire could be in this area and there is no exiting repeater with good coverage of it.DoF is requesting permission to install this repeater in the AEA/HEA Bradley Road microwave site. nd'Waa 3 'a. ma MasiEeEoEESrconesenowe®.o"ofaareFopwae-@.Or Pamceen -05.ee we wa j -* wet -2 ae ws a)ae i as ae i ow r)-e ween OS c: ¢ +-ja oo or ms pene @ --): iw |, The Codan (previously known as Daniels)repeater will operate in the VHF band.It will transmit on 151.295 MHz and receive on 159.300 MHz.!t mounts in a standard 19 inch relay rack and occupies three rack spaces which is 5.25 inches tall.It will have a 30 Watt power amplifier.The equipment normally operates in 12 VDC and will be equipped with a piggy back DC to DC converter so that is can operate from 48 VDC.An optional 120 VAC piggy back power supply is also available. A duplexer will be included with the repeater to use the same antenna to simultaneously transmit and receive.The duplexer will be mounted above or below the repeater and occupies one rack space which is 1.75 inches. The total space occupied by the repeater and duplexer is four rack spaces which is 7 inches.When the repeater is idle it draws less than 100 mA at 48VDC.When the repeater is transmitting is draws less than 2A at 48VDC. want - A single antenna will be mounted on the tower at the top or on a standoff bracket on the side.It will be a fiberglass radomed vertical antenna about 5 feet long and 2.75 inches in diameter.It has a wind survival rating of 200 MPH or 1SOMPH with 0.5”ice.The antenna weighs 12 Ibs.and presents 1.3 sq.ft. of wind load area. Questions or request for additional information may be directed to John Lynn,Communications Engineer at 907-269-5772 or john.lynn@alaska.gov.