HomeMy WebLinkAboutBPMC Sept 25, 2015 1 of 2SaR&PBRADLEY LAKE PROJECT MANAGEMENT COMMITTEE
REGULAR MEETING
AGENDA
Friday,Sept.25,2015
10:00 a.m.-12:00 p.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 -July 30,2015
OLD BUSINESS
A.AEG&T to MEA signed consent form Joe Griffith
B.Resolution 14-11 -Mediation or dispute resolution process Kirk Gibson
NEW BUSINESS
A.Dynamic Scheduling update ML&P
B.HEA proposed annual schedule and budget HEA
C.Homer's Notice of Claims Kirk Gibson
COMMITTEE REPORTS
OPERATORS REPORT
COMMITTEE ASSIGNMENTS
MEMBERS COMMENTS
NEXT MEETING DATE -Nov.17,2015
ADJOURNMENT
ITEM6
BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING
REGULAR MEETING
Alaska Energy Authority,Anchorage,Alaska
July 30,2015
1.CALL TO ORDER
Chair Borgeson called the regular meeting of the Bradley Lake Hydroelectric Project
Management Committee to order at 9:30 a.m.
2.ROLL CALL (for Committee members)
Cory Borgeson (Golden Valley Electric Association [GVEA]);Sara Fisher-Goad (Alaska Energy
Authority [AEA]);Lee Thibert (Chugach Electric Association [CEA]);Joe Griffith (Matanuska
Electric Association [MEA]);Mark Johnston (Anchorage Municipal Light &Power My
John Foutziz (City of Seward);and Harvey Ambrose (Homer Electric.Association [HEA7.4 we ele RA Te be Poa,Sn wah.3.A "PUBLIC ROLL CALL,(for all others pes Scienzeeee,spree7 *
.ineBryanCarey,J otelyn Gamer,Kelli Veech,Teri:Webster (AEA);Brian Bjorkquist (AttorneyGeneral's Office [AGO]);Brian Hickey,Burke Wick (CEA);Allen Gray (GVEA);Bob Day,Alan Owens (HEA);Kirk Gibson (McDowell Rackner:&Gibson),Mollie Morrison,J eff Warner(MLP);Ron Saxton,Bernie Sinith (Public);and Sunny Morrison (Accu-Type Depositions).4..AGENDA COMMENTS)MOTION FOR{AbPRovAL -::
The saewas approved as presented [\;::.P
5.pUBLICCOMMENTS \-,Le ka =
None.
6.APPROVAL OF PRIOR MEETING MINUTES -May 29,2015
Chair Borgeson requested any reference to Mr.Lee in the minutes be corrected to Mr.Thibert.
MOTION:Mr.Ambrose made a motion to approve prior meeting minutes of May 29,
2015 as amended.Motion seconded by Mr.Thibert.
The motion passed.
7.OLD BUSINESS
A.Battle Creek budget and project discussion
Mr.Carey provided a detailed review of the one-page project status summary.
DRAFT BPMC Minutes 7/30/15 Page 1 of5
Mr.Griffith inquired as to the anticipated nominal output.Mr.Carey noted an average annual
energy of 37,000 MWh is stated on the application.Mr.Carey informed no additional funds are
needed at this point in the timeline.Additional funding could be requested at the end of 2015 or
early 2016 for design.The final design will not occur until after FERC provides responses
regarding flow terms and conditions.
Chair Borgeson requested the name of the major engineering contractor.Mr.Carey informed the
original engineering work was completed by R&M Consultants.Dowl Engineering has been
solely utilized since August 2014.Chair Borgeson inquired as to the reason for the change of the
engineering consultant.Mr.Carey commented there was a loss of confidence in R&M
Consultants from over-designing expense,compared to Dowl's focus on cost reduction
alternatives.
B.Long Term Financing options
Mr.Johnston reported the Budget Committee met and unanimously decided to recommend the
option of forward-funding the R&C Fund for FY1 6,meaning all payments for FY16 would be «madein the first six months of FY 16.This allows the cost of the SVCs to be funded through the'R&C Fund.Mr.J ohnston,described the Budget Committee S decision-making process forthisrecommendation.-a a :apammaTamas:Cc.AEG&T t MEA signed consenttforn
SePRReeaaRte1camperMr.Gibson informed the drat document of the aassiignment of AEG&T's iinterest to MEA hasbeendistributed.After the opinion from MEA jisreceived,the consent forms will be sent to themembersforsignature.|”[2 feL a 5PeZMr.Griffith apolo sized and explained he Siigned the assighment document,as General Manager,without realizing an additional opinion from counsel was expected.Mr.Griffith requested Mr.Gibson discuss and obtain further verifications with MEA counsel David Pease.;
8.NEW BUSINESS
A.Election of Vice-Chair
Mr.Griffith nominated Mr.Thibert as Vice-Chair.
MOTION:Mr.Johnston made a motion to close nominations for Vice-Chair,and elect
Mr.Thibert as Vice-Chair.Motion seconded by Mr.Griffith.
The motion passed.
B.Resolving dispute discussion update (Res 14-11)
Mr.Gibson informed he wrote a letter to Rick Baldwin of HEA,at the direction of the Chair,in
an effort to restart the discussion between Committee members to resolve outstanding issues.A
timely response was received,which expressed appreciation and the willingness to amicably
resolve HEA's unchanged claims within the context of the litigation settlement proceedings.
DRAFT BPMC Minutes 7/30/15 Page 2 of 5
Mr.Griffith requested a status update on the litigation before the courts.Chair Borgeson advised
Mr.Gibson is not involved,and has not been directed to get involved,with that litigation.Chair
Borgeson stated the Supreme Court has not decided on the stay requested by RCA.Chair
Borgeson suggested the Committee,at a later date,discuss the option of requesting Mr.Gibson
to provide his legal opinion or seeking outside counsel to assist the BPMC on these issues.
Mr.Foutz asked for explanation of the purpose of the stay requested by RCA.Chair Borgeson
explained the decision by Judge Corey stated the BPMC has the dispute resolution authority and
the RCA does not have jurisdiction.Thus,the RCA Order 10 ruling was vacated.RCA disagreed
and wants to issue the next order due in August.
Chair Borgeson tasked Mr.Gibson to discuss with Mr.Bjorkquist regarding AEA opposition to
BPMC's Resolution 14-11.Mr.Bjorkquist informed he will go through the rules of professional
responsibility in order to discuss matters in litigation with Mr.Gibson.
Ms.Fisher-Goad stated all members supported the BPMC decision months ago of the dispute
resolution process under mediation.As that dispute resolution process evolved to a
nonconsensual approach by vote under Resolution 14-11,AEA did not believe BPMC had the
authority to take a nonconsensual,non-mediation position for the dispute resolution process.
Mr.Griffith stated for the record he does not believe the dispute resolution process was amediationprocess,and no mediation effort was associated.He noted the BPMC made a findingandarulingthatresultedinResolution14-11.
Mr.Bjorkquist restated his interest to have a discussion regarding AEA's position but will have
to do this within the guidelines set for cases that are still in litigation.
C.FY 2015 and FY 2016 Budget Amendments
Mr.Johnston described the proposed amendments for the FY15 budget to increase the utility
contributions by $520,414 due to an increase in debt service payment and an increase in capital
purchases.The proposed amendment for the FY 16 budget is to increase the utility contributions
by $582,008 due to an increase in the debt service payment and an increase in O&M operations.
MOTION:Mr.Johnston made a motion to approve Amendment 3 to the FY 2015 Budget.
Motion seconded by Mr.Thibert.
A roll call was taken,and the motion passed.
MOTION:Mr.Johnston made a motion to approve Amendment 1 to the FY 2016 Budget.
Motion seconded by Mr.Foutz.
A roll call was taken,and the motion passed.
D.Local control of Bradley during islanded condition
Mr.Thibert reported the conflict has been resolved on the local control of Bradley Lake while
islanded during the ongoing transmission work.He believes the protocol and communications
could have been better before the conflict occurred.Mr.Thibert requested,for the future,these
DRAFT BPMC Minutes 7/30/15 Page 3 of 5
issues be addressed before they become a problem.The system is interconnected and no utility
should act unilaterally.
Mr.Day commented HEA has never taken dispatch control away from CEA at any time.Mr.
Day informed the way in which CEA was dispatching the Bradley plant caused HEA to suffer
frequency excursions,which threatened their system.HEA has required CEA to telephonically
dispatch the plant almost every time islanding occurred since January 1,2014,and was operating
on what HEA believed was the agreed upon methods.Mr.Day provided members with a copy of
Section 8 of the Services Agreement,describing the duties of CEA to coordinate with HEA to
minimize potential conflicts between operations.Mr.Day stated he believes the recent issues
have been resolved.
Mr.Foutz indicated Seward is also impacted by the decisions of the operations and the dispatch.
Chair Borgeson expressed his appreciation for the resolution of the issues.Chair Borgeson
commented he does not want to pay to divert the Bradley workforce to man the plant at night
when CEA is responsible for the dispatch.Chair Borgeson encouraged CEA to complete the
dynamic scheduling project.Mr.Wick noted that work will continue to move forward as soon as
the islanding condition is concluded.Chair Borgeson noted the dynamic scheduling status will be
placed on the next agenda.
9.COMMITTEE REPORTS
A.Budget Committee
Mr.Johnston stated all information from the Budget Committee has been reported during the
meeting.pS
B.O&D Committee
Mr.Griffith stated he spoke with the O&D Committee Chairman yesterday,and all of the
information has been reported during the meeting.
10.OPERATORS REPORT
Mr.Owens provided a detailed review of the operators report provided to the Committee.Mr.
Day gave an update of the fish water screen debris included in the report and discussed the
postponement of the Bradley Junction switch removal to next spring.
11.COMMITTEE ASSIGNMENTS
Chair Borgeson assigned Mr.Gibson to work with Mr.Bjorkquist on AEA's position in the
litigation,and for Mr.Gibson to provide the Committee with an opinion on whether the
Resolution 14.11 process was mediation or the contractual agreed to dispute resolution.
Chair Borgeson assigned Mr.Griffith to provide the signed consent form and opinion to
AEG&T.
DRAFT BPMC Minutes 7/30/15 Page 4 of 5
Mr.Griffith indicated he will advise the O&D Committee to develop a plan regarding the fish
water issues.
12,MEMBERS COMMENTS
Ms.Fisher-Goad expressed her appreciation to Mr.Day and Mr.Owens for their hospitality
during her and Mr.Carey's recent visit to the site.She has a picture of the clogged fish water
valve for members to view.Ms.Fisher-Goad informed she has a meeting with Voith before the
NHA Regional meeting,and requested any concerns from HEA that need to be communicated to
Voith be given to Mr.Carey.Ms.Fisher-Goad encouraged members to attend the NHA Regional
meeting on August 18th and 19th.
Ms.Fisher-Goad indicated,in an effort to save BPMC money,AEA met with DNR to request
BLM lift the public land order on the federal land associated with the project in order for the
state to receive title.FERC has changed those rules and the FERC land use fees should be lifted.
The FY15 budget reflects payment of $180,000.The FY16 budget:reflects payment of$183,000.The FY17 budget will hopefully reflect no payment due.ae eo
Chair Borgeson commented all but oone of his Board of Directors visited the Bradley project.HeexpressedhisappreciationtoMr.Day and Mr.Owens during the visit.Chair Borgesonencouragedmemberstotaketheirboardstoseetheproject.He believes it would be beneficialfor,the BPMC meeting to be heldat the Bradley facility oronce a year or once every two years.ChairBorgeson expressed his appreciation to the members for continued communication inresolvingissues.b 7 :7 f Dts':
13._NEXT.MEETING DATE \.
Thennext meeting dateis set for September25th,2015.The schedule for meetings willremaineverytwomonths.
14.ADJOURNMENT
There being no further business for the committee,the meeting adjourned at 11:48 a.m.
BY:
Cory Borgeson,Chair
Attest:
Sara Fisher-Goad
Alaska Energy Authority,Secretary
DRAFT BPMC Minutes 7/30/15 Page 5 of 5
ITEM8B
To the BPMC:
As required by the AGREEMENT FOR SALE OF TRANSMISSION CAPABILITY section 4(b),HEA's
estimate for O&M expenses next 2016 calendar year is $100,000 for re-clearing work.This
work will require frozen ground and schedule will be dependent on weather conditions.
(b)0 &M expense.In addition to paying its share of theConstructionCosteachPurchasershallreimburseHEAineachmonth
for a portion of HEA's actual expenses associated with operating,maintaining and repairing the Soldotna Segment (O &M expense)inaccordancewiththeformulasetforthinAttachmentC.Such ex-
penses shall include but shall not be limited to all expenses re-
lated to providing necessary voltage support,except expenses re-lated to capital improvements,for the Soldotna Segment installed
at or between Bradley Junction and Soldotna Substation,and all
taxes,if any,for which HEA may become liable as a result of thesaleoftransmissioncapability,Prior to the beginning of eachyearHEAshallsubmittotheProjectManagementCommitteeanan-nual schedule and budget of its proposed operation,maintenanceandrepairexpenses.
As you can see we are required to notify the BPMC of these costs prior to January 2016 so the
next meeting will be in plenty of time.
Robert H.Day,PE
Homer Electric Association
Cell 907 399 1446
ITEM
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PERKINSCO!e Br Riws o
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Seave VS Db a {
CEIVEDAugust27,2015 Thomas L Bocder RE
TBoeder aperkinscoie com
b +1 206359 8416
F +1 2063599416 pv:ups ,
Municipality of Anchorage John J.Burns,Attorney
Dean Thompson,Attorney Golden Valley Electric Association,Inc!O)[>WKempple,Hufman &Ellis PC Burns &Associates,PC
255 E.Fireweed Lane,Ste.200 100 Cushman St.,Ste 310
Anchorage,AK 99503 Fairbanks,AK 99701
David Pease,In-House Counsel Mark K.Johnson,General Counsel
Matanuska Electric Association,Inc.Chugach Electric Association,Inc.
163 E.Industrial Way 5601 Electron Drive
Palmer,AK 99645 Anchorage,AK 99519-6300
Subject:Notice of Claims re:Coordinating Utilitics'Violation of Alaska's
Restraint of Trade Act and Unfair Trade Practices Act
Dear Sirs:
A.Introduction
This firm represents Homer Electric Association,Inc.and its subsidiary,Alaska Electric and
Energy Cooperative,Inc.(collectively,"HEA”)in connection with the above-referenced matter.
We have been retained by HEA to evaluate the merits of certain claims arising under Alaska's
Restraint of Trade Act in connection with Chugach Electric Association,Inc.("CEA”),Golden
Valley Electric Association,Inc.(*GVEA”),Matanuska Electric Association,Inc.("MEA”),and
the Municipality of Anchorage d/b/a Municipal Light &Power ("ML&P”)(collectively,the
"Coordinating Utilities”).These Coordinating Utilities have exerted their influence and control
over the Bradley Lake Project Management Committee ("BPMC”)in a manner that is
detrimental to the public's financial and competitive interests.Specific anticompetitive practices
detrimental to the public interest include,without limitation,the following:
e Priority dispatch of Bradley Lake energy over other uses of the transmission system;
e Preclusion of HEA's ability to schedule firm delivery and sell power to other Railbelt
Utilities;and
e Subsidization of the Coordinating Utilities'use of HEA's transmission system.y
The Coordinating Utilities'anticompetitive practices restrain,if not prohibit,HEA from selling
its surplus power into a discernible generalized market.As a result.the customers of electric
utilities are deprived of the potential benefits of such sales and pay inflated rates.
LEGAL 127479743 2
Coordinating Utilities'General Counsel
August 27,2015
Page 2
As interpreted and applied by the BPMC in Resolution 14-1],we have also reviewed theServicesAgreementandtheCapabilityAgreementrelativetoAS§45.50.574,which provides,
in relevant part,that "a contract or agreement in violation of a provision of AS 45.50.562 -
45.50.596 is voidable by either party as to future performance by either party.”As so interpreted
and applied,the Services Agreement and the Capability Agreement are voidable agreements
pursuant to AS §45.50.574.
We hereby put the Coordinating Utilities on notice that,based upon our review of the law and
the facts as stated below,the actions of the Coordinating Utilities violate Alaska's Restraint of
Trade Act and Alaska's Unfair Trade Practices and Consumer Protection Act.A prevailing
plaintiff under either statute is entitled to recover treble damages plus costs and reasonable
attorneys'fees for antitrust violations.Additionally,as interpreted and applied by the BPMC,
the Services Agreement and the Capability Agreement unlawfully restrain commerce and are
thus voidable as to future performance.A further discussion of our analysis of these issues is set
forth below.
B.Background:
HEA is a rural electric cooperative in Alaska serving 22,892 member-owners within a 3,166
square-mile service area on the Kenai Peninsula.HEA is also a "public utility”under Alaska
law and is regulated by the Regulatory Commission of Alaska ("RCA”),as are the Coordinating
Utilities.
In order to meet the resource needs of its customers,HEA owns and operates electric generation,
transmission,and distribution facilities and periodically buys power from other Railbelt utilities.
HEA is a participant in the 120 MW Bradley Lake Hydroelectric Project ("Project”).HEApurchasesBradleyLakeenergypursuanttothePowerSalesAgreement.HEA is also a signatory
to the Services Agreement whereby CEA initially agreed to provide "wheeling,storage,and
energy purchase services”over CEA's generation and transmission system to GVEA,MEA and
ML&P.Lastly,pursuant to the Capability Agreement,HEA provides CEA,GVEA and ML&P
a share of the capability of a transmission line known as the Soldotna Segment,which is used by
these utilities to deliver Bradley Lake energy from the Project to the Soldotna Substation.
The Project is owned by the Alaska Energy Authority ('AEA,”formerly the Alaska Power
Authority).The Federal Energy Regulatory Commission issued a license for the Project in 1985.
HEA has been involved in Project since early 1984.After extended negotiations,the above
'The Services Agreement and the Capability Agreement are two of the three agreements that generally referred to
as the "Bradley Lake Agreements.”The Bradley Lake Agreements consist of the "Bradley Lake Hydroelectric
Project Agreement for the Sale and Purchase of Electric Power the Power Sales Agreement”(the "Power Sales
Agreement”),the "Agreement for the Wheeling of Electric Power and for Related Services”(the "Services
Agreement”),and the "Amendment to Agreement for the Sale of Transmission Capability”(the "Capability
Agreement”).
LEGAL 127479743 2
te eas Leahy?
Coordinating Utilities'General Counsel
August 27,2015
Page 3
referenced Bradley Lake Agreements were executed in December of 1987 (the Capability
Agreement was amended and restated in 1989).AEA issued tax exempt bonds to finance a
portion of cost of the Project.The Power Sales Agreement is a fifty-year "take or pay”
commitment on the part of the Project participants that was critical to the initial financing of the
Project.
Wholesale power agreements between public utilities are generally subject to the jurisdiction of
the RCA.AS §42.05.431(b).When the Bradley Lake Project was being developed,the RCA's
authority to review and approve the Power Sales Agreement was thought to be a regulatory risk
that jeopardized the availability of tax exempt financing for the Project.To address this
supposed risk,in 1988 the Alaska state legislature authorized a narrow exemption to the
Commission's jurisdiction to prevent the RCA from reviewing and approving a "wholesale
agreement for the sale of power from a project licensed by the Federal Energy Regulatory
Commission on or before January 1,1987,and related contracts for the wheeling,storage,
regeneration,or wholesale repurchase of power purchased under the agreement.”See
AS §§42.05.431(c)and (e).The Coordinating Utilities assert that this exemption divests the
RCA of its jurisdiction over virtually all matters relating to the sale,dispatch,transmission and
delivery of Bradley Lake energy.The Coordinating Utilities assert that the BPMC,and not the
RCA,is responsible for the oversight and supervision of matters relating to the sale,dispatch,
transmission and delivery of Bradley Lake energy pursuant to the terms and conditions of the
Bradley Lake Agreements.We assume,arguendo,for purposes of this analysis that:
(i)AS §§42.05.431(c)and (e)do divest the RCA of its jurisdiction to oversee and supervise the
sale,dispatch,transmission and delivery of Bradley Lake energy,and (ii)the BPMC asserts and
exercises independent authority to oversee and supervise the sale,dispatch,transmission and
delivery of Bradley Lake energy.
The BPMC is not a state agency.The BPMC is a creature of contract,created in 1988 pursuant
to the Power Sales Agreement.The BPMC is comprised of the power purchasers and the AEA.
The Power Sales Agreement gives the BPMC responsibility (a)for the management,operation,
maintenance,and improvement of the Bradley Lake Hydroelectric Project;(b)to arrange for the
scheduling,production,and dispatch of Project power;and (c)to develop dispute resolution
procedures.The BPMC has adopted dispute resolution procedures for disputes arising under the
Power Sales Agreement.
The BPMC has addressed the scope of its own jurisdiction in Resolution 14-11.Among other
things,the BPMC asserts that the "Services Agreement place[d]a broad range of rights and
obligations upon the BPMC”including the authority to arrange for the "scheduling,production,
and dispatch of Project power.”We further understand that the BPMC asserts that the Services
Agreement and the Capability Agreement confer rights and authority to the BPMC that allow the
BPMC to require HEA to transmit power from Bradley Lake through HEA's system without
paying the cost of the service,and on a priority basis,and that such an assertion of rights
effectively would enable the Coordinating Utilities to reserve all of the available transmission
LFGAIL 127479743 2
PC iz)
Coordinating Utilities'General Counsel
August 27,2015
Page 4
capacity on the Anchorage tie line and thereby prohibit or at least restrain the sale of non-
Bradley energy to other utilities.We further understand that the BPMC asserts that the Bradley
Lake Agreements are to be interpreted and applied as a single integrated agreement and that the
BPMC asserts that its dispute resolution authority extends to disputes arising under the Power
Sales Agreement,the Services Agreement and the Capability Agreement.
Cc.Legal Analysis
Alaska's Restraint of Trade Act mirrors sections 1 and 2 of the Sherman Act and is construed
consistently therewith.Compare AS §§45.50.562-596 with 15 U.S.C.§§1,2;see Sisters of
Providence in Wash.v.A.A.Pain Clinic,81 P.3d 989,1000 (Alaska 2003);Alakayak v.B.C.
Packers,Ltd.,48 P.3d 432,448 (Alaska 2002).A restraint of trade under Alaska's Section 1
requires proof of three elements:(1)an agreement or conspiracy among two or more persons or
distinct business entities;(2)intent on the part of those persons or entities to harm or restrain
competition;and (3)the agreement or conspiracy actually injured competition in the relevant
market.AS §45.50.562;Sisters of Providence,81 P.3d at 1000.Alaska courts are "guided by
federal Sherman Act cases in construing Alaska antitrust law.”Sisters ofProvidence,81 P.3d at
1000.Accordingly,because this case does not involve a per Se restraint,Alaska courts will
apply the rule of reason to determine whether competition has actually been injured.Id.at
1000-01.
As under federal law,prevailing plaintiffs recover treble damages plus costs and reasonable
attorneys'fees for antitrust violations.AS §45.50.576.Additionally,any contracts evidencing a
violation of the Restraint of Trade Act are voidable as to future performance.AS §45.50.574
("a contract or agreement in violation of a provision of AS 45.50.562 -45.50.596 is voidable by
either party as to future performance by either party.”).
Based upon our review of the law and the facts and assumptions stated above,HEA has a strong
claim for a violation of Alaska's Restraint of Trade Act.HEA can show proof of an agreement
or conspiracy by virtue of the Coordinating Utilities'interest in the Project and the Bradley Lake
Agreements and the Coordinating Utilities'membership and participation in the BPMC.HEA
can also show that the Coordinating Utilities (1)agreed to enforce priority restrictions against
HEA,(2)refused to pay for use of HEA's transmission system,and (3)prevented HEA from
selling excess generation capacity.HEA can use this evidence to show the requisite intent
necessary to harm or restrain competition.
Moreover,HEA's inability to sell its economy energy and surplus power harms competition.
The customers of other electric utilities are harmed because they pay higher prices.HEA
customers are harmed because they are deprived of the benefit of revenues collected from sales
of economy energy and surplus power.HEA customers suffer the further harm of bearing the
financial burden of subsidizing the Coordinating Utilities'anticompetitive practices.
LEGAL127479743.2
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August 27,2015
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Finally,the Coordinating Utilities contend that the Services Agreement and the Capability
Agreement confer the authority to demand transmission on a priority basis and without
compensating HEA for its services.As so interpreted and applied,these agreements evidence a
violation of Alaska's Restraint of Trade Act and are voidable agreements pursuant to AS§45.50.574.?
Although they are regulated utilities,a "state action”defense is not available to the Coordinating
Utilities in this case.In order to qualify for antitrust exemption,any anticompetitive behavior
must be clearly articulated and affirmatively expressed as state policy and this policy must be
actively supervised by the Commission.See Chugach Elec.Ass'n,Inc.v.Regulatory Comm'n ofAlaska,49 P.3d 246,252 n.18 (Alaska 2002).The conduct in question is not in furtherance of a
"clearly articulated and affirmatively expressed state policy.”Even if such a policy were to be
identified,there is presently no active state supervision of the challenged conduct by the RCA or
any other state entity.As the Coordinating Utilities have argued,and the Alaska Superior Courthasrecentlyagreed,'the RCA does not have jurisdiction to regulate this conduct;instead,thisauthorityis,based on the Superior Court's decision in 3AN-14-08890,°vested in the
Coordinating Utilities themselves,acting through the BPMC.Yet active market participants are
not allowed to regulate their own markets free from antitrust accountability.
Moreover,this same conduct also violates Alaska's Unfair Trade Practices and Consumer
Protection Act (UTPA),AS §§45.50.471 to 45.50.561.Modeled after section 5(a)oftheFederalTradeCommission(FTC)Act,®the UTPA broadly prohibits unfair methods of
competition.The Alaska Supreme Court recognizes the potential for concurrent liability under
Alaska's Restraint of Trade Act and the UTPA,while also acknowledging that the UTPA covers
a broader range of conduct.Matanuska Maid,Inc.v.State,620 P.2d 182,185-86 (Alaska 1980).
Accordingly,though not every violation of the UTPA also offends the Restraint of Trade Act,all
conduct that violates the Restraint of Trade Act also offends the UTPA.Jd.;see also,e.g.,Union
Circulation Co.v.Fed.Trade Comm'n,241 F.2d 652,656 (2d Cir.1957)("A violation of the
?If in fact,as the Coordinating Utilities contend,a court were to construe the Bradley Lake Agreements to be a
single integrated contract,the implications of AS §45.50.574 could extend beyond the Services Agreement and the
Capability Agreement.>AS §45.50.572(d)states that "AS 45.50.562 -45.50.596 do not apply to other services provided by public utilities
that have been issued a certificate of public convenience and necessity under AS 42.05."The anticompetitive
practices in question are not regulated services;the exemption applies only to the extent such activities are expressed
as state policy and actively supervised by the Commission.See,e.g.,N.C.State Bd.of Dental Exam 'rs v.F.T.C.,
135 S.Ct.1101,1110-11,191 L.Ed.2d 35 (2015).
*See Order,May 28,2015 in Case No.3AN-14-08890 Cl°HEA believes the Superior Court's May 28,2015 decision was in error,and the decision is on appeal to the Alaska
Supreme Court in Supreme Court Nos.S-15944/15973.®AS §45.50.545 ("In interpreting AS 45.50.471 due consideration and great weight should be given the
interpretations of 15 U.S.C.45(a)(1)(§5(a)(1)of the Federal Trade Commission Act).”);State v.O'Neill
Investigations,Inc.,609 P.2d 520,532-34 (Alaska 1980)(holding UTPA is not unconstitutionally vague because
"saved by the Federal Trade Commission's interpretations of identical statutory language.'').
LEGAL 127479743.2
MararsCoe LLP
Coordinating Utilities'General Counsel
August 27,2015
Page 6
Sherman Act,15 U.S.C.A.§|et seq.,is an unfair method of competition under the FederalTradeCommissionAct.”).!
D.Conclusion
The Coordinating Utilities'anticompetitive practices restrain,if not prohibit,HEA from selling
its surplus power into a discernible generalized market.HEA is still assessing the harm to itself
and its customers resulting from this illegal conduct and such further actions available to HEA
for relief.Additionally,because the Services Agreement and the Capability Agreement are
voidable agreements pursuant to AS §45.50.574,HEA is not bound by these agreements and has
no obligation to perform any obligations arising thereunder.
It has been and remains HEA's preferred alternative to resolve the issues in dispute with respect
to the use of HEA's transmission system amicably.To date,the Coordinating Utilities have not
indicated any interest in allowing HEA to operate its transmission system free from
anticompetitive constraints.Absent a willingness on the part of the Coordinating Utilities to
acknowledge HEA's right to fairly compete in the sale of power and to receive fair compensation
for the use of its transmission system by other utilities,HEA will have no choice but to pursue all
available legal remedies to prevent the Coordinating Utilities'ongoing violation of Alaska's
Restraint of Trade Act and to recover for the damages caused by your clients'actions,including
treble damages.
Very truly yours,
Thomas L.Boeder
cc:Rick Baldwin
7 Courts are clear that businesses,as well as individuals,can take advantage of the UTPA's private right of action.
AS $§45.50.531,.535;HW Star Trucks,Inc.v.Big lron Equip.Serv.,Inc.,101 P.3d 1047,1049-53 (Alaska 2004)
(holding UTPA is not limited to consumer transactions,but also applies to transactions between businesses).Private
parties can recover injunctive relief and mandatory treble damages.AS §$§45,50.531,535.In addition,prevailing
plaintiffs recover full attorney's fees at the prevailing rate.AS §45.50.537.
LEGAI 127479743 2
saree stun bhi
ITEM9
ALASKA ENERGY AUTHORITY
BRADLEY LAKE HYDROELECTRIC PROJECT
2015 4TH QUARTER REPORT
REVENUES,EXPENSES &CHANGES IN SURPLUS
REVENUES
UTILITY CONTRIBUTIONS
INTEREST INCOME
EXPENSES
OPERATIONS
RENEWAL/REPLACE (R&C REPAYMENTS)
R&C INTEREST APPLIED AS REPMT
NON R&C CAPITAL PURCHASES -See A1
TRANSFER TO OPERATING RESERVE
DEBT SERVICE (net of Capita!Reserve Reduction)
TRANSFER TO ARBITRAGE
CURRENT YEAR SURPLUS(DEFICIT)
PRIOR YEAR SURPLUS (DEFICIT)
BEGINNING SURPLUS (DEFICIT)
COMMITTED CY EXP &DEBT SVC
ENDING SURPLUS (DEFICIT)
BALANCE SHEET
ASSETS
REVENUE FUND
OPERATING FUND
DUE FROM R&C
RECEIVABLE
PREPAID
LIABILITIES &SURPLUS
CURRENT LIABILITIES
DUE TO R&C
COMMITTED CY EXP &DEBT SVC
PAYABLE TO UTILITIES O&M
PAYABLE TO UTILITIES R&C
OTHER INFORMATION
OPERATING RESERVE
MONTHLY CONTRIBUTIONS
FY2014 FY2015 FY2015
ACTUALS AMENDED ACTUALS
BUDGET 6/30/2015
16,260,994 18,094,728 18,094,728
1,879,404 1,859,550 1,856,550
18,140,398 19,954,278 19,951,278
4,142,938 5,420,502 3,977,749
1,048,829 1,365,856 1,146,123
313,408 -244,582
193,549 281,704 254,039
44,030 118,366 160,366
12,104,950 12,475,850 12,475,850
292,694 292,000 298,316
18,140,398 19,954,278 18,557,025
--1,394,253
:-(1,394,253)
678,142 -431,911
1,599,575 -1,852,035
279,247 --
25,865 -520,416
6,205 -52,258
2,589,034 -2,856,620
1,175,401 -1,392,414
->69,953
:-1,394,253
1,134,386 --
279,247 --
2,589,034 -2,856,620
965,734 1,084,100 1,084,100
1,404,594 1,507,894 1,507,894
ALASKA ENERGY AUTHORITY
BRADLEY LAKE HYDROELECTRIC PROJECT
Schedule A-1
FY14 FY14 FY15 FY15CAPITALPURCHASESNOTFUNDEDBYR&C FUND BUDGET |ACTUALS |BUDGET|ACTUALS
Replace Office Furniture 10,000 7,327 --
Telephone/Network Upgrade 20,000 13,457 --
Accusonic Flow Meter Monitoring Unit Replacement -16,422 --
Replace Fish Water Valve Actuators 20,000 -20,000 -
Utility Vehicles 7,500 5,500 --
Replace JEM meters with ION meters -23,154 --
Nuka Diversion Hut 75,000 5,636 --
Weather Stations 15,000 ---
Roof ice Guards for Main Transfomer 28,000 ---
DCS Security Interface for Data Access 125,000 --141,703
Generator Partial Discharge Monitor 145,000 107,012 --
Surveillance Cameras 30,000 15,040 --
Lube Oil Purification System --46,000 47,723
Replace 1998 Chevrolet Crew Cab Vehicle --37,000 32,306
Replace 1990 Ford Single Cab Vehicle --37,000 32,306
Total Non R&C Capital Purchases 475,500 193,549 140,000 254,039
Budget Items Being Reviewed by O&D FY14 FY14 FY15 FY15
(not approved at this time)PROPOSED|ACTUALS |PROPOSED]}ACTUALS
Engineering Work to Design Bradley Junction Substation 300,000
System Studies for Bradley Operation 250,000
Diamond Ridge Breaker Mitigation 160,000
ALASKA ENERGY AUTHORITY
BRADLEY LAKE OPERATIONS &MAINTENANCE
SCHEDULE B
BUDGET TO ACTUAL EXPENSES
FOR THE PERIOD 07/01/2014 THROUGH 06/30/2015
FY 15 FY 14
Fy 15 Amended (Over)Under FY14 APPROVED
Budget HEA Actual |CEA Actual]AEA Actual |Total Actual Budget BUDGET FY14 ACTUAL
Summary by expense type 161,274 344,042
Labor &Benefits 1,986,848 1,443,752 269,688 i 1,713,440 273,408 1,545,880 1,353,077
Travel 35,410 13,053 2,476 *15,529 19,881 11,000 13,837
Training 38,731 26,568 :-26,568 12,163 -:
Contractual 809,380 270,704 2,145 370,886 643,735 165,645 797,473 597,329
Supplies &Materials 435,919 94,964 129,332 :224,297 211,622 248,919 115,619
Other Costs 593,797 $5,562 32,570 137,580 225,712 368,085 858,897 489,641
i &Machinery 8,500 23,710 :i 23,710 (15,210)8,500 3,192
Maintenance Projects 143,530 -2,414 :2,414 141,116 95,790 22,013
[Administrative Costs 1,368,387 $2,121 30,000 1,020,223 4,102,344 266,043 1,100,937 1,204,190
5,420,502 1,980,435 468,625 1,528,689 3,977,749 1,442,753 4,828,670 4,142,940
FERC $35 -Operation Supervision &Engineering
Operations Sup/Eng
Bradley Lake Operating
Labor &Benefits 291,632 282,780 :i 282,780 8,852 268,052 266,237
Travel 8,610 12,894 °-12,894 (4,284)8,200 11,861
Training 7,904 4,116 --4,116 3,788 :-
Contractual 1,445 :°--1,445 9,349 10,339
Supplies &Materials 6,203 344 --344 5,859 6,203 390
Bradley Lake Operating Total 315,794 300,134 :300,134 15,660 291,804 288,827
FERC 535 -Operation Supervision &Engineering Total 315,794 300,134 -:300,134 15,660 291,804 288,827
FERC 537 -Hydraulic Expenses
Hydraulic Expenses.
Bradley Lake Operating
Labor &Benefits 95,056 76,200 --76,200 18,856 91,400 74,298
Contractual 19,504 8,000 :-8,000 11,504 19,504 11,475
Supplies &Materials 2,608 ----2,608 2,608 918
Bradley Lake Operating Total 117,168 84,200 ::84,200 32,968 113,512 86,691
FERC 537 -Hydraulic Expenses Total 117,168 84,200 °-84,200 32,968 113,512 86,691
FERC 538 -Electric Expenses
Electric Expenses
Bradley Lake Operating
Labor &Benefits 224,000 234,351 ::234,351 (10,351)]197,000 215,587
Training 30,827 18,383 :-18,383 12,444 --
Contractual 21,342 14,055 -°14,085 7,287 121,169 57,136
Supplies &Materials 6,232 2,184 *-2,184 4,048 6,232 498
Bradley Lake Operating Total 282,401 268,973 --268,973 13,428 324,401 273,191
FERC $38 -Electric Expenses Total 282,401 268,973 **268,973 13,628 324,401 273,191
FERC 539 -Misc.Hydraulic Power i
Misc Hydro Power Exp
Bradley Lake Operating
Labor &Benefits 192,000 114,373 :-114,373 77,627 192,168 75,569
Training :4,070 --4,070 {4,070}-:
Contractual 239,571 142,752 :-142,752 96,819 224,078 173,600
Supplies &Materials 94,878 18,473 :-18,473 76,405 94,878 $3,658
Bradley Lake Operating Total 526,449 279,668 :279,668 246,781 511,124 302,827
BRADLEY CIRCUITS/RADIO TO BERNICE LK
Other Costs 30,000 28,740 :-28,740 1,260 90,000 90,000
BRADLEY CIRCUITS/RADIO TO BERNICE LK Total 30,000 28,740 --28,740 1,260 $0,000 90,000
BRADLEY CIRCUITS BERNICE LK TO ANCH
Other Costs 30,000 *31,485 -31,485 (1,485)30,000 28,746
BRADLEY CIRCUITS BERNICE LK TO ANCH Total 30,000 :31,485 :31,485 (1,485)30,000 28,746
FERC 539 -Misc.Hydraulic Power Generation Expenses Total 586,449 308,408 31,485 bd 339,893 246,556 631,124 421,573
FERC 540 -Rents
FERC Land Use Fee
Bradley Lake Operating
Other Costs 180,000 :-137,230 137,230 42,770 175,000 179,565
Bradiey Lake Operating Total 180,000 -:137,230 137,230 42,770 175,000 179,565
FERC 540 -Rents Total 180,000 :.137,230 137,230 42,770 175,000 179,565
FERC 541 -Maintenance Supervision &Engineering
Maint Supervision/Eng
Bradley Lake Operating
Labor &Benefits 214,230 197,018 :id 197,018 17,212 171,510 206,626
Bradley Lake Operating Total 214,230 197,018 --197,018 17,212 171,510 206,626
FERC 542 -Maintenance Supervision &Engineering Total 214,230 197,018 .-197,018 47,212 171,510 206,626
ALASKA ENERGY AUTHORITY
BRADLEY LAKE OPERATIONS &MAINTENANCE
SCHEDULE B
BUDGET TO ACTUAL EXPENSES
FOR THE PERIOD 07/01/2014 THROUGH 06/30/2015
Fv 15 FY 14
FY 15 Amended {Over}Under FY14 APPROVED
Budget HEA Actuat |CEA Actual]A€A Actual Total Actual Budget BUDGET FY14 ACTUAL
FERC 542 -Maintenance of Structures
Maintenance of Structures
Bradley Lake Operating
Labor &Benefits 96,200 75,264 :-75,264 20,936 120,000 74,462
Supplies &Materials 64,273 10,009 ::10,009 $4,264 64,273 23,138
Equipment &Machinery 8,500 10,769 .:10,769 (2,269)8,500 3,192
Maintenance Projects 6,000 --:-6,000 :+
Bradley Lake Operating Total 174,973 96,041 -:96,041 78,932 182,773 100,791
FERC $42 -Maintenance of Structures Total 174,973 96,041 °:96,041 78,932 182,773 100,791
FERC $43 -Maintenance of Reservoirs,Dams &Waterways
Maint Res,Dams,WWays
Bradley Lake Operating
Labor &Benefits 49,950 42,309 ::42,309 7,641 10,750 276
Contractual 28,769 630 ::630 28,139 2,769 :
Bradley Lake Operating Total 78,719 42,939 --42,939 35,780 13,519 276
BRADLEY NUKA REPAIR
Supplies &Materials -787 .*787 (787):-
Equipment &Machinery :12,942 :-12,942 (12,942):-
Maintenance Projects 21,630 -::-21,630 21,630 463
BRADLEY NUKA REPAIR Total 21,630 13,729 :-13,729 7,901 21,630 463
BRADLEY POWER TUNNEL MAINT (Dam)
Contractual :43,131 +*43,131 (43,131)::
Maintenance Projects $6,000 --:+56,000 43,260 21,550
BRADLEY POWER TUNNEL MAINT (Dam)Total $6,000 43,131 id :43,131 12,869 43,260 21,550
BRADLEY POWER TUNNEL DRAIN CLN/INSP (P/House)
Maintenance Projects 9,000 -::-9,000 -:
BRADLEY POWER TUNNEL DRAIN CLN/INSP (P/House}Total 9,000 :-.-9,000 .-
FERC 543 -Maintenance of Reservoirs,Dams &Waterways Total 165,349 99,799 --99,799 65,550 78,409 22,289
FERC S44 -Maintenance of Electric Piant
Maintenance of Elec Plant
Bradley Lake Operating
Labor &Benefits 379,600 323,757 :.323,757 55,843 365,000 317,817
Travel 2,800 188 -:158 2,642 2,800 1,976
Contractual 61,849 33,765 -:33,765 28,084 31,849 7,905
Supplies &Materials 27,245 20,650 :-20,650 6,595 27,245 14,961
Bradiey Lake Operating Total 471,494 378,331 -:378,331 93,164 426,894 342,659
BRADLEY GOVERNOR PSSE MODEL
Contractual 25,000 25,000 *-25,000 ---
BRADLEY GOVERNOR PSSE MODEL Total 25,000 25,000 :°25,000 -::
FERC $44 -Maintenance of Electric Piant Total 496,494 403,331 :.403,331 93,164 426,894 342,659
FERC 545 -Maintenance of Misc.Hydraulic Plant
Maint of Misc Hydr Plant
Bradley Lake Operating
Labor &Benefits 95,680 78,186 :-78,186 17,494 92,000 113,365
Contractual 3,900 170 °.170 3,730 3,900 :
Supplies &Materials 71,281 40,220 -40,220 31,061 41,281 21,231
Bradley Lake Operating Total 170,861 118,576 i :118,576 $2,285 137,181 134,596
BRADLEY FISH WATER DSGN/MIDDLE FORK SHACK IMPR
Maintenance Projects 30,900 -*>-30,900 30,900 -
BRADLEY FISH WATER DSGN/MIDOLE FORK SHACK IMPR Total 30,900 :::-30,900 30,900 :
FERC 545 -Maintenance of Misc.Hydraulic Plant Total 201,761 118,576 :.118,576 83,185 168,081 134,896
FERC S56 -System Control &Load Dispatching
System Cnt!&Load Disp
Bradley Lake Operating
Labor &Benefits 48,000 19,514 :-19,514 28,486 48,000 8,871
Contractual 5,000 -:--5,000 35,500 16,131
Supplies &Materials 6,199 2,297 ::2,297 3,902 6,199 825
Bradley Lake Operating Total 59,199 21,811 --21,811 37,388 89,699 25,827
BRADLEY POWERHOUSE PC'S
Contractual 30,500 3,201 -*3,201 27,299 fl *-
BRADLEY POWERHOUSE PC'S Total 30,500 3,201 -:3,201 27,299 ::
BRADLEY DISPATCH REGULATIONS
Maintenance Projects 20,000 :---20,000 --
BRADLEY DISPATCH REGULATIONS Total 20,000 :-:*20,000 ::
Snow Measurement
Bradley Lake Operating
Contractual 11,000 -:10,000 10,000 1,000 10,130 10,000
Bradley Lake Operating Total 11,000 --10,000 10,000 1,000 10,130 10,000
Seismic Service
Bradley Lake Operating
Contractual 60,000 -64,477 64,477 (4,477)56,500 $1,678
Bradley Lake Operating Total 60,000 ::64,477 64,477 {4,477)56,500 51,678
Strearmguaging Serv
ALASKA ENERGY AUTHORITY
BRADLEY LAKE OPERATIONS &MAINTENANCE
SCHEDULE B
BUDGET TO ACTUAL EXPENSES
FOR THE PERIOD 07/01/2014 THROUGH 06/30/2015
FY 15 FY 14
FY 15 Amended (Over)Under Fy14 APPROVED
Budget HEA Actual |CEA Actual]AEA Actual |Total Actuat Budget BUDGET FY14 ACTUAL
Bradley Lake Operating ,
Contractuat 295,000 -.296,409 296,409 (1,409)282,725 259,065
Bradley Lake Operating Total 295,000 ::296,409 296,409 (1,409)282,725 259,065
Permits
Bradley Lake Operating
Other Costs 100 -:350 350 (250)200 250
Bradley Lake Operating Total 100 :.350 350 (250)200 250
FERC S56 -System Contro!&toad Dispatching Total 475,799 25,012 :371,236 396,248 79,551 439,254 346,820
FERC S62 -Station Expenses
Station Expenses
Bradley take Operating 161,274 344,042
Labor &Benefits 300,500 -269,688 :269,688 30,812
Travel 24,000 -2,476 2,476 21,524Contractual6,500 :2,145 :2,145 4,355
Supplies &Materials 157,000 :129,332 .129,332 27,668
Other Costs bd -1,085 :1,085 (1,085)
Maintenance Projects --2,414 -2,414 (2,414)
Bradley Lake Operating Total 488,000 bd 407,140 -407,140 80,860 161,274 344,042
FERC 562 -Station Expenses Total 488,000 °407,140 -407,140 80,860 161,274 344,042FERC$71 -Maintenance of Overhead Lines
Maint of OH Lines
Bradley Lake Operating
Other Costs 353,697 26,822 --26,822 326,875 353,697 191,080
Bradley Lake Operating Total 353,697 26,822 :-26,822 326,875 353,697 191,080
BRADLEY JUNCTION SWITCH REMOVAL
Other Costs +-:-:-210,000 :
BRADLEY JUNCTION SWITCH REMOVAL Total >---:-210,000 *
FERC $71 -Maintenance of Overhead Lines Total 353,697 26,822 -a 26,822 326,875 $63,697 191,080
FERC 920 -Administrative Expense
AEA Bradley Fixed Admin Fees
Bradley Lake Operating
Administrative Costs 200,000 '200,000 200,000 *200,000 200,000
Bradley Lake Operating Total 200,000 --200,000 200,000 :200,000 200,000
Operating Committee Exp-Audit
Bradley Lake Operating
Administrative Costs 116,250 --15,500 15,500 100,750 15,200 14,750BradieyLakeOperatingTotal116,250 -:15,500 15,500 100,750 15,200 14,750
Operating Committee Exp-Legal
Bradley Lake Operating
Administrative Costs 25,000 --22,110 22,110 2,890 25,000 68,151
Bradley Lake Operating Total 25,000 :22,110 22,110 2,890 25,000 68,151
Operat Committee Exp-Arbitrage
Bradley Lake Operating
Administrative Costs 5,200 -*3,630 3,630 1,570 §,200 3,630
Bradley Lake Operating Total 5,200 -:3,630 3,630 1,570 5,200 3,630
Trust &Account Fees
Bradley Lake Operating
Administrative Costs 12,300 :-11,918 11,918 382 12,300 11,918
Bradley Lake Operating Totat 12,300 :11,918 11,918 382 12,300 11,918
FERC 920 -Administrative Expense Total 358,750 *:253,158 253,158 105,592 257,700 298,449
FERC 924 &925 -insurance Premiums
insurance Premiums
Bradley Lake Operating
Administrative Costs 574,637 $2,121 -510,799 562,920 11,717 572,237 $19,471BradieyLakeOperatingTotal$74,637 $2,121 :510,799 562,920 11,717 572,237 $19,471
Risk Management
Bradley Lake Operating
Administrative Costs 35,000 -30,000 -30,000 5,000 a :
Bradley Lake Operating Total 35,000 -30,000 -30,000 $,000 -:
FERC 924 &925 -Insurance Premiums Total 609,637 $2,121 30,000 $10,799 592,920 16,717 572,237 $19,471
FERC 928 -vc Xp
FERC Admin Fees
Bradley Lake Operating
Administrative Costs 250,000 -:150,819 150,519 99,481 200,000 204,998
Bradley Lake Operating Total 250,000 >a 150,519 150,519 99,481 200,000 204,998
FERC Related Prof Services
Bradley Lake Operating
Administrative Costs 150,000 ::105,747 105,747 44,253 71,000 181,272
Bradiey Lake Operating Total 150,000 ::105,747 105,747 44,253 71,000 181,272
FERC 928 -¥Ci Exp Total 400,000 *-256,266 256,266 143,734 271,000 386,270
Total Bradley Lake Budget $,420,502 1,980,435 468,625 1,528,689 3,977,749 1,442,753 4,828,670 4,142,940
BRADLEY LAKE
R&C FUND DISBURSEMENTS AND REPAYMENTS
SCHEDULE D
Actuai Actual Actual Actual Actual Actual Actual Actual
Fy12 TO REPAY Fv13 TO REPAY Fy14 TO REPAY @ 06/3015 TO REPAYDescriptionDisburse6/30/2012 Disburse 6/30/2013 Disburse 6/30/2014 Disburse 6/30/2018
R&C FUND PROJECTS
jGovemor 0.00 2,779,953.51 58,252.20 2,838,205.71 586,125.63 3,424,331.34 627,738.80 4,052,070.14
}Replace RFLS 0.00 251,092.69 0.00 251,092.69 0.00 251,092.69 0.00 251,092.69ReplaceRunners0.00 1,946,732.79 0.00 1,946,732.79 0.00 1,946,732.79 0.00 1,946,732.79Replacecablefromdamtopowerhouse0.00 2,321 ,922.94 0.00 2,321 922.94 0.00 2,321 ,922.94 0.00 2,321,922.94
Replace power system stabilizer 447,531.38 591,444.40 27,760.70 619,205.10 9.00 619,205.10 0.00 619,205.10
Replace two RTUs 0.00 86,905.27 0.00 86,905.27 0.00 86,905.27 0.00 86,905.27CulvertRepairs0.00 675,966.79 0.00 675,966.79 0.00 675,966.79 0.00 875,966.79TowerRepairforJackFrostHeaves0.00 687,596.62 0.00 887,596.62 0.00 887,596.62 0.00 887,596.62ReplacePlantandSCADAControls1,008,298.67 1,008,298 67 336,384.38 1,344,883.05 0.00 4,344,683.05 0.00 1,344,883.05VibrationMonitoringSystem0.00 490.00 0.00 490.00 0.00 490.00 0.00 490.00
Fire Alarm System Replacement 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Battle Creek Diversion 0.00 0.00 479,657.87 479,657.87 471,070.61 950,728.48 43,605.35 994,333.83BradleyReplaceElectro-Mechanical Retays 0.00 0.00 499,893.38 499,893.38 777,303.68 1,277,197.06 0.00 1,277,197.06
Fishwater Screen Debris Removal 0.00 0.00 0.00 6.00 0.00 0.00 21,929.45 21,929.45
iTurbine Nozzel Repair 9.00 0.00 0.00 6.00 0.00 0.00 96,423.49 96,423.491,455,830.05]_10,550,403.88 1,401,048.53]_11,952,352.21 1,834,499.92]__13,786,852.13 789,697.09|_14,576,549.22
Current Year R&C Repayment (883,075.00 (1,536,319.00)(1,328,076.00)(1,146,123.009)IFY15 R&C repayment received in FY16 0.00 0.00 0.00 (219,731.00
]interest in Fund Applied to Repayment (309,829.60 (372,914.96)(313,407.18)(244,$82.41)
Net Transfer from Revenue Fund {1,192,904 60.(1,909,233.96)(1,641 ,483.18 (1,610,436.41
Cumulative Prior Years R&C Repayments (7,890,873.12 (8,742,193.90)(9,884 ,350.26)(11,346,045.42
Due Back to Utilities 773,897.74 767,077.60 179,788.03 239,942.51
Adjust Due to R&C Actual (531,773.16)|(99,459.25);0.00 0.00
(7,848,748.54 (8,074,575.55))(9,704 562.23)(11,106,102.91
INET DUE TO R&c FUND 1,708,750.54 1,968 542.70 2,440,806.72 1,860,009.91
IR&C FUND CASH FLOW PROJECTION
[Beginning investment Balance 3,872,242.58 4,671 ,504.45 4,827,751.16 3,015,716.76
mt year -A 1 (849,472.80 (572,732.26)(1,857 223.72)(766,797.23
Disbursements-prior year accrued (82,071.19)|(606,357.25)(820,216.26)}(177,276.20)
Utilities'R&C Repayment 537,901.26 (773,897.74;(767,077.60)(179,788.03
iQue to R&C from revenue fund -debt service transfer 0.00 0.00 0.00 (69,953.03)
Current year interest earings 309,829.60 372,914.98 313,407.18 244,582.41
Participants Contributions to R&C Fund 883,075.00 _____1,836,319.00 |___1,328.076.00 |__1,146,123.00|
Ending Investment Balance 4,674 ,504.45 4,627,751.16 wee 215,718.76 |3,212,60768
Accrued Due to Utilities (773,897.74 (767,077.60)(179,788.03)(239,942.51)
Accrued Due from Revenue fund (debt services transfer)69,953.03
Accrued Due from Revenue fund (debt services transfer)104,193.00
Accrued Due from Revenue fund (FY15 budget amend)115,537.99
R&C payable back to the revenue fund revised (99,459.25)(99,459.25
Accrued R&C vendor Payable at Year End (606,357.25)(829,216.26)revised (177,276.20 (22,899 84
less R&C excess cash at 7/1/05
PROJECTED NET OUE +ENDING INVESTMENT BALANCE §,000,000.00 eee :2 00,000.00 )§,000,000.00 5,000,000.00
REPAYMENT AMOUNT
$238,606.15 X 25%4th yr 59,651.54
$954,181.78 x 25%ard yr 238,545.45 [4th yr 238,545.45
$756,665.11 x 25%2nd yt 189,166.28 [3rd yr 189,166.28 4th yr 189,166.28
5.1 ,455,830.05 x .25%1 st yr 363,957.51 [2nd yr 363,957.51 [3rd yr 363,957.51 4th yr 363,957.51
1$1,401,948.53 x 25%tst yr 350,487.43 [2nd yr 350,487.13 {3rd yr 350,487.13
$1,834,499.92 x .25%'ist yr 458,624.98 [2nd yr 458,624.98
789,697.09 x .25%ed 1st yr 197,424.27
851,320.78 emrsees 142,156.38 ]1,362,235.91 eee!370,493.90]
Bradley Lake
Budget to Actual Expense Report
7/1/2015 through 7/31/2015
Page 1 of 7
ALASKA ENERGY AUTHORITY
BRADLEY LAKE HYDROELECTRIC PROJECT
Schedule A-1
Expenses for the period 7/1/15 through 7/31/15
CAPITAL PURCHASES NOT FUNDED BY R&C FUND FY15
BUDGET
FY15
ACTUALS
Replace Office Furniture
FY16
BUDGET
FY16
ACTUALS
Telephone/Network Upgrade
Accusonic Flow Meter Monitoring Unit Replacement
Replace Fish Water Valve Actuators
Utility Vehicles
Replace JEM meters with ION meters
Nuka Diversion Hut
Weather Stations
Roof Ice Guards for Main Transfomer
DCS Security Interface for Data Access 141,703
Generator Partial Discharge Monitor
Surveillance Cameras
Lube Oil Purification System 46,000 47,723
Replace 1998 Chevrolet Crew Cab Vehicle 37,000 32,306
Replace 1990 Ford Single Cab Vehicle 37,000 32,306
Total Non R&C Capital Purchases
Page 2 of 7
140,000 254,039
ALASKA ENERGY AUTHORITY
BRADLEY LAKE OPERATIONS &MAINTENANCE
SCHEDULE B
BUDGET TO ACTUAL EXPENSES
FOR THE PERIOD 07/01/2015 THROUGH 07/31/2015
FY 16 FY is
BUDGET %
FY 16 Approved 07/01/2015 -(Over)Under FY 15 Amended
Budget 07/31/2015 HEA Actual]CEA Actual |AEA Actual]Total Actual |Budget to Date Budget Total Actual
[Summary by expense type
Labor &Benefits 2,143,223 178,602 186,160 15,263 -201,423 {22,821}1,986,848 1,713,440
Travel 98,600 8,217 1,326 -:1,326 6,892 35,410 15,529
Training 38,731 3,228 4,187 -:4,187 (959)38,731 26,568
Contractual 1,180,859 98,405 56,126 >*56,126 42,279 809,380 643,735
Supplies &Materials 275,760 22,980 6,948 760 :7,707 15,273 435,919 224,297
Other Costs 451,746 37,646 2,395 2,601 °4,996 32,650 593,797 225,712
Equi &Machinery 33,130 2,761 188 :-188 2,573 8,500 23,710
{Maintenance Projects 37,900 3,158 ----3,158 143,530 2,414
Administrative Costs 1,321,817 110,151 4,406 -71,426 75,833 34,318 1,368,387 1,102,344
$,581,766 465,148 261,735 18,624 71,426 351,786 113,362 5,420,502 3,977,749
FERC 535 -Operation Supervision &Engineering
Operations Sup/Eng
Bradley Lake Operating
Labor &Benefits 304,235 25,353 35,049 ::35,049 (9,696)291,632 282,780
Travel 9,500 792 813 ::813 (21)8,610 12,894
Training 7,904 659 1,222 :-1,222 (563)7,904 4,116
Contractual 1,445 120 :.:*120 1,445 -
Supplies &Materials 6,203 $17 70 :-70 447 6,203 344
Bradley Lake Operating Total 329,287 27,441 37,154 --37,154 (9,713)315,794 300,134
FERC 535 -Operation Supervision &Engineering Total 329,287 27,441 37,154 -:37,154 {9,713)318,794 300,134
FERC 537 -Hydraulic Expenses
Hydraulic Expenses
Bradley Lake Operating
Labor &Benefits 95,273 7,939 8,398 -*8,398 {459)95,056 76,200
Contractual 17,180 1,432 :-**1,432 19,504 8,000
Supplies &Materials 2,608 217 --+-217 2,608 :
Bradley Lake Operating Total 115,061 9588 8,398 ::8,398 1,190 117,168 84,200
« RC 537 -Hydrautic Expenses Totat 115,061 9,588 8,398 :°8,398 1,190 117,168 84,200
FERC 538 -Electric Expenses
Electric Expenses
Bradley Lake Operating
Labor &Benefits 257,107 21,426 27,534 ::27,534 (6,108)224,000 234,351Training30,827 2,569 2,965 -:2,965 (396)30,827 18,383
Contractual 3,342 279 ----279 21,342 14,055
Supplies &Materials 12,232 1,019 bd -:-1,019 6,232 2,184
Bradley Lake Operating Total 303,508 25,293 30,500 --30,500 (5,207)282,401 268,973
FERC 538 -Electric Expenses Total 303,508 25,293 30,500 -:30,500 {5,207)282,401 268,973
FERC 539 -Misc.Hydraulic Power Generation Expenses
Misc Hydro Power Exp
Bradley Lake Operating
Labor &Benefits 189,473 15,789 15,330 --15,330 459 192,000 114,373
Training ----:.--4,070
Contractual 315,249 26,271 $5,393 :-$5,393 (29,122)239,571 142,752
Supplies &Materials 22,000 1,833 2,897 ::2,897 (1,064)94,878 18,473
Bradley Lake Operating Total 526,722 43,893 73,620 --73,620 (29,727)$26,449 279,668
BRADLEY CIRCUITS/RADIO TO BERNICE LK
Other Costs 30,000 2,500 2,395 -:2,395 105 30,000 28,740
BRADLEY CIRCUITS/RADIO TO SERNICE LK Total 30,000 2,500 2,395 *.2,395 105 30,000 28,740
BRAOLEY CIRCUITS BERNICE LK TO ANCH
Other Costs 28,746 2,396 :2,481 *2,481 {85)30,000 31,485
BRADLEY CIRCUITS BERNICE LK TO ANCH Total 28,746 2,396 a 2,481 -2,481 (85)30,000 31,485
FERC $39 -Misc.Hydraulic Power Generation Expenses Totat 585,468 48,789 76,015 2,481 -78,496 (29,707)586,449 339,893
FERC 540 -Rents
FERC Land Use Fee
Sradley Lake Operating
Other Costs 183,000 15,250 :-::15,250 180,000 137,230
Bradiey Lake Operating Total 183,000 15,250 :---15,250 180,000 137,230
FERC 540 -Rents Total 183,000 15,250 *--:15,250 180,000 137,230
Page 3 of 7
ALASKA ENERGY AUTHORITY
BRADLEY LAKE OPERATIONS &MAINTENANCE
SCHEDULE B
BUDGET TO ACTUAL EXPENSES
FOR THE PERIOD 07/01/2015 THROUGH 07/31/2015
FY 16 FY 15
BUDGET %
FY 16 Approved 07/01/2015 -(Over)Under FY 15 Amended
Budget 07/31/2015 HEA Actual |CEA Actual |AEA Actual]Total Actual |Budget to Date Budget Total Actual
FERC 541 -Maintenance Supervision &Engineering
Maint Supervision/Eng
Bradley Lake Operating
Labor &Benefits 222,118 18,510 25,406 -25,406 (6,896)214,230 197,018
Bradley Lake Operating Total 222,118 18,510 25,406 25,406 {6,896)|214,230 137,230
FERC 541 -Maintenance Supervision &Engineering Tota!222,118 18,510 25,406 :25,406 (6,896)214,230 197,018
FERC $42 -Maintenance of Structures
Maintenance of Structures
Bradley Lake Operating
tabor &Benefits 98,273 7,939 8,025 i 8,025 (86)96,200 75,264
Supplies &Materials 61,273 $,106 440 :440 4,666 64,273 10,009
Equipment &Machinery 11,800 958 188 .188 770 8,500 10,769
Maintenance Projects 4,000 333 ---333 6,000 -
Bradley Lake Operating Total 172,046 14,336 8,654 -8,654 5,682 174,973 96,041
FERC 542 -Maintenance of Structures Total 172,046 14,336 8,654 -8,654 5,682 174,973 96,041
FERC 543 -Maintenance of Reservoirs,Dams &Waterways
Maint Res,Dams,WWays
Bradley Lake Operating
Labor &Benefits 51,276 4,273 21,290 .21,290 (17,017)49,950 42,309
Contractual 5,200 433 :--433 28,769 630
Bradley Lake Operating Total 56,476 4,706 21,290 :21,290 (16,584)78,719 42,939
BRADLEY NUKA REPAIR
Supplies &Materials .---:-.787
Equipment &Machinery 21,630 1,803 ---1,803 21,630 12,942
BRADLEY NUKA REPAIR Total 21,630 1,803 ::-1,803 21,630 13,729
BRADLEY POWER TUNNEL MAINT (Dam)
Maintenance Projects 20,000 1,667 :-:1,667 56,000 43,131
BRADLEY POWER TUNNEL MAINT (Dam)Total 20,000 1,667 ::-1,667 56,000 43,131
BRADLEY POWER TUNNEL DRAIN CLN/INSP (P/House}
Supplies &Materials -:1,004 *1,004 (1,004)9,000 -
Maintenance Projects 9,000 750 :*:750 ::
BRADLEY POWER TUNNEL DRAIN CLN/INSP (P/House)Total 9,000 750 1,004 :1,004 (254)9,000 -
FERC 543 -Maintenance of Reservoirs,Dams &Waterways Total 107,106 8,926 22,294 -22,294 (13,368)165,349 99,799
FERC $44 -Maintenance of Electric Plant
Maintenance of Elec Plant
Bradley Lake Operating
Labor &Benefits 381,093 31,758 31,515 :31,515 243 379,600 323,757
Travel 3,500 292 513 -$13 {221)2,800 188
Contractual 91,443 7,620 733 -733 6,887 61,849 33,765
Supplies &Materials 27,248 2,270 1,010 -1,010 1,260 27,245 20,650
Bradiey Lake Operating Totat $03,281 41,940 33,771 33,771 8,169 471,494 378,331
BRADLEY GOVERNOR PSSE MODEL
Contractual ----.a 25,000 25,000
BRADLEY GOVERNOR PSSE MODEL Total *::°a -25,000 25,000
FERC 544 -Maintenance of Electric Plant Total 503,281 41,940 33,771 :33,771 8,169 496,494 403,331
FERC 545 -Maintenance of Misc.Hydraulic Plant
Maint of Misc Hydr Plant
Bradley Lake Operating
Labor &Benefits 9S,273 7,939 12,841 :12,841 (4,902}95,680 78,186
Contractual 3,900 325 ::.325 3,900 170
Supplies &Materials 43,000 3,583 1,527 -1,527 2,056 71,281 40,220
Bradley Lake Operating Total 142,173 11,847 14,369 :14,369 (2,522)170,861 118,576
BRADLEY FISH WATER OSGN/MIODLE FORK SHACK IMPR
Maintenance Projects 24,900 2,078 :--2,075 30,900 +
BRADLEY FISH WATER DSGN/MIDDLE FORK SHACK IMPR Total 24,900 2,075 **-2,075 30,900 *
FERC 545 -Maintenance of Misc.Hydraulic Plant Total 167,073 13,922 14,369 .14,369 (447)201,761 118,576
Page 4 of 7
ALASKA ENERGY AUTHORITY
BRADLEY LAKE OPERATIONS &MAINTENANCE
SCHEDULE B
BUDGET TO ACTUAL EXPENSES
FOR THE PERIOD 07/01/2015 THROUGH 07/31/2015
FY 16 FY 15
BUDGET %
FY 16 Approved 07/01/2015 -(Over)Under FY 15 Amended
Budget 07/31/2015 HEA Actual]CEA Actual}AEA Actual{Total Actual |Budget to Date Budget Total Actual
FERC 556 -System Control &Load Dispatching
System Cntl &Load Disp
Bradiey Lake Operating
Labor &Benefits 49,000 4,083 770 -:770 3,314 48,000 19,514
Contractual 8,500 708 >*.:708 $,000 :
Supplies &Materials 6,199 $17 :---$17 6,199 2,297
Bradley Lake Operating Total 63,699 $,308 770 -:770 4,539 $9,199 21,811
BRADLEY POWERHOUSE PC'S
Contractual $0,000 4,167 ::bd -4,167 30,500 3,201
BRADLEY POWERHOUSE PC'S Total 50,000 4,167 --:+4,167 30,500 3,201
BRADLEY DISPATCH REGULATIONS
Maintenance Projects -:.-..-20,000 -
BRADLEY DISPATCH REGULATIONS Total >:-:.-id 20,000 :
Snow Measurement
Bradley Lake Operating
Contractual 10,000 833 -:id Md 833 11,000 10,000
Bradley Lake Operating Total 10,000 833 :---833 11,000 10,000
Seismic Service
Bradley Lake Operating
Contractual 62,000 5,167 -::-5,167 60,000 64,477
Bradley Lake Operating Total 62,000 5,167 --::5,167 60,000 64,477
Streamguaging Serv
Bradley Lake Operating
Contractual 296,000 24,667 :::-24,667 295,000 296,409
Bradley Lake Operating Total 296,000 24,667 :a :*24,667 295,000 296,409
Permits
Bradley Lake Operating
Contractual 100 8 ::::8 100 350
Bradley Lake Operating Total 100 8 >:::8 100 350
FERC 556 -System Control &Load Dispatching Total 481,799 40,150 770 --770 39,381 475,799 396,248
FERC 562 -Station Expenses
Station Expenses
Bradley Lake Operating
Labor &Benefits 251,852 20,988 -18,263 :15,263 $,725 300,500 269,688
Travel 26,000 2,167 :-:.2,167 24,000 2,476
Contractual 6,500 542 ---.$42 6,500 2,145
Supplies &Materials 95,000 7,917 :760 :760 7,187 157,000 129,332
Other Costs .--120 -120 (120):1,085
Maintenance Projects -:--:---2,414
Bradley Lake Operating Total 379,352 31,614 :16,143 >16,143 18,472 488,000 407,140
FERC 562 -Station Expenses Total 379,352 31,614 -16,143 -16,143 15,471 488,000 407,140
FERC 571 -Maintenance of Overhead Lines
Maint of OH Lines
Bradley Lake Operating
Labor &Benefits 166,320 12,193 -7 --12,193 -=
Travel $4,600 4,550 --:-4,550 ..
Contractual 90,000 7,500 --.*7,500 :bd
Other Costs --*:->353,697 26,822
Bradley Lake Operating Total 290,920 24,243 --:24,243 353,697 26,822
SRADLEY JUNCTION SWITCH REMOVAL
Other Costs 210,000 17,500 -:.-17,$00 :ha
BRADLEY JUNCTION SWITCH REMOVAL Total 210,000 17,500 +-:-17,500 ->
MARKER BALL REPLACEMENT
Labor &Benefits 4,929 411 ----411 ::
Travel 5,000 417 :--:417 --
Contractual 200,000 16,667 :-::16,667 -:
AARKER BALL REPLACEMENT Total 209,929 17,495 :-:-17,495 '*
|rerc 571 -Maintenance of Overhead Lines Total 710,849 59,238 --:-59,238 353,697 26,822
Page S of 7
ALASKA ENERGY AUTHORITY
BRADLEY LAKE OPERATIONS &MAINTENANCE
SCHEDULE B
BUDGET TO ACTUAL EXPENSES
FOR THE PERIOD 07/01/2015 THROUGH 07/31/2015
FY 16 FY 15
BUDGET %
FY 16 Approved 07/01/2015 -(Over)Under FY 15 Amended
Budget 07/31/2015 HEA Actual |CEA Actual |AEA Actual}Total Actual |Budget to Date Budget Total Actual
FERC 920 -Administrative Expense
AEA Bradley Fixed Admin Fees
Bradley Lake Operating
Administrative Costs 200,000 16,667 :-16,667 16,667 it)200,000 200,000
Bradley Lake Operating Totat 200,000 16,667 :-16,667 16,667 0 200,000 200,000
Operating Committee Exp-Audit
Bradley Lake Operating
Administrative Costs 116,250 9,688 :*:=9,688 116,250 15,500
Bradley Lake Operating Total 116,250 9,688 >-:-9,688 116,250 15,500
Operating Committee Exp-Legal
Bradley Lake Operating
Administrative Costs 25,000 2,083 :-4,428 4,428 (2,345)25,000 22,110
Bradley Lake Operating Total 25,000 2,083 --4,428 4,428 (2,345}25,000 22,110
Operat Committee Exp-Arbitrage
Bradley Lake Operating
Administrative Costs 3,630 303 --3,630 3,630 (3,327)5,200 3,630
Bradley Lake Operating Total 3,630 303 ::3,630 3,630 {3,327)5,200 3,630
Trust &Account Fees
Bradley Lake Operating
Administrative Costs 12,300 1,025 -.5,959 5,959 (4,934)12,300 11,918
Bradley Lake Operating Total 12,300 1,025 :-5,959 5,959 {4,934)|12,300 11,918
FERC 920 -Administrative Expense Total 357,180 29,766 *:30,684 30,684 (918)358,750 253,158
FERC 924 &925 -Insurance Premiums
Insurance Premiums
Bradley Lake Operating
Administrative Costs 574,637 47,886 4,406 :40,743 45,149 2,737 574,637 $62,920
Bradley Lake Operating Total 574,637 47,886 4,406 -40,743 45,149 2,737 $74,637 $62,920
Risk Management
Bradley Lake Operating
Administrative Costs -:*:--.35,000 30,000
Bradley Lake Operating Total ::-:::-35,000 30,000
FERC 924 &925 -Insurance Premiums Total 574,637 47,886 4,406 .40,743 45,149 2,737 609,637 592,920
FERC 928 -latory Commi
p
FERC Admin Fees
Administrative Costs 210,000 17,500 *:-a 17,500 250,000 150,519
Bradiey Lake Operating Total 210,000 17,500 ---:17,500 250,000 150,519
FERC Related Prof Services
FERC Part 12 Inspection
Administrative Costs $5,000 4,583 :--.4,583 -:
Contractual Engineer-FERC license issues
Administrative Costs 125,000 10,417 -::-10,417 150,000 105,747
Bradley Lake Operating Total 180,000 15,000 ::-:15,000 150,000 105,747
FERC 928 -LF yc fi Total 390,000 32,500 --:-32,500 400,000 256,266
Total Bradley Lake Budget $,581,766 465,148 261,735 18,624 71,426 351,786 113,362 5,420,502 3,977,749
Page 6 of 7
BRADLEY LAKE
R&C FUND DISBURSEMENTS AND REPAYMENTS
SCHEDULE D
Expenses for the period 7/1/15 through 7/31/15
1,142,156.38 1,362,235.91 1,370,493.90
Actual Actual Actual Actual Actual Actual Actual ActualFY13TOREPAYFY14TOREPAYFY1STOREPAYasof7/34/16 TO REPAYipDisburse6/30/2013 Disburse 6/30/2014 Disburse 6/30/2015 Disburse 6/30/2016
R&C FUND PROJECTS
Governor $8,252.20 2,838,205.71 $86,125.63 3,424,331.34 627,738.60 4,052,070.14 0.00 4,052,070.14
Replace RFLS 0.00 251,092.69 0.00 251,092.69 0.00 251,092.69 0.00 251,092.69ReplaceRunners0.00 1,946,732.79 0.00 1,946,732.79 0.00 1,946,732.79 0.00 1,946,732.79Replacecablefromdamtopowerhouse0.00 2,321 922.94 0.00 2,321 ,922.94 6.00 2,321,922.94 0.00 2,321 922.94
Replace power system stabilizer 27,760.70 619,205.10 0.00 619,205.10 0.00 619,205.10 0.00 619,205.10ReplacetwoRTUs0.00 86,905.27 0.00 86,905.27 0.00 86,905.27 0.00 86,905.27CulvertRepairs0.00 675,966.79 0.00 675,966.79 0.00 675,966.79 0.00 675,966.79TowerRepairforJackFrostHeaves0.00 887,596.62 0.00 887,596.62 0.00 887,596.62 0.00 887,596.62ReplacePlantandSCADAControls336,384.38 1,344 683.05 0.00 1,344,683.05 0.00 1,344 683.05 0.00 1,344,683.05VibrationMonitoringSystem0.00 490.00 0.00 490.00 0.00 490.00 0.00 490.00
Fire Alarm System Reptacement 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Battle Creek Diversion 479,657 87 479,657.87 471,070.61 950,728.46 43,605.35 994,333.83 44,319.31 1,038,653.14
Bradley Replace Electro-Mechanicat Relays 499,893.38 499,893.38 777 303.68 1,277,197.06 0.00 1,277,197.06 0.00 1,277,197.06
Fishwater Screen Debris Removal 0.00 0.00 0.00 0.00 21,929.45 21,929.45 0.00 21,929.45
Turbine Nozzel Repair 9.00 0.00 0.00 0.00 96,423.49 96,423.49 111,816.85 208,240.34
1,401,948.53 I 11,952,352.24 1,834 ,499.92 I 13,786,852.13 789,697.09 I 14,576,549.22 156,136.16 L.14,732,685.38
Current Year R&C Repayment (1,536,318.00;(1,328,076.00 (1,146,123.00
FY15 R&C repayment received in FY16 0.00 0.00 (219,731.00)
Interest in Fund Applied to Repayment 72,914.96 (313,407.18)(244,582.41NetTransferfromRevenueFund(1,909,233.96 (1,641,483.18)](1,610,436.41
Cumulative Prior Years R&C Repayments (8,742,193.90 (9,884 ,350.26)(11,346,045.42)}
Due Back to Utities 767,077.60 179,788.03 239,942.51
Adjust Due to R&C Actual (99,459.25)|0,00 0.00
(8,074,575.55)(3,704 ,562.23;(ft,106,102.91
INET DUE TO R&C FUND 1,968,542.70 2,440,.806.72 1,860,009.91
R&C FUND CASH FLOW PROJECTION
Beginning Investment Balance 4,671 504.45 4,827,751.16 3,015,716.76
Disbursements-current year -Accrual ($72,732.26 (1,657 ,223.72)(766,797.23)
Disbursements-prior year accrued (606 357.25)(829,216.26 (977,276.20)
Utilities'R&C Repayment (773,897.74.(767,077.60)(179,788.03)
Current year interest earnings 372,914.96 313,407.18 (69,953.03)
Participants Contributions to R&C Fund 1,$36,319.00 1,328,076.00 244,582.41
Ending Investment Balance 3,015,716.76 3,212,607 .68 ee)
Accrued Due to Utilities (767,077.60 {179,788.03}(239,942.51
Accrued Due from Revenue fund (debt services transfer)69,953.03
Accrued Due from Revenue fund (debt services transfer)104,193.00
Accrued Due from Revenue fund (FY15 budget amend)115,537.99
R&C payable back to the revenue fund revised {99,459.25 (99,459.25)
Accrued R&C Payable at Year End (829,216.26)revised (177.276209 (22,899.84)-
jess R&C excess cash at 7/1/05
PROJECTED NET DUE +ENDING INVESTMENT BALANCE a 9,008,000.00 J 5,000,000.00 |5,000,000.00 |es
REPAYMENT AMOUNT
$984,181.79 x 25%4th yr 238,545.45
$756,665.11 x .25%Md yr 189,166.28 [4th yr 189,166.28
i$1,455,830.05 x .25%2nd yr 363,957.51 [3¢d yr 363,957.51 [4th yr 363,957.51
$1 401,948.53 x 25%Ist yr 356,487.13 [2nd yr 350,487.13 [3rd yr 350,487.13 [4th yr 350,487.13
$1 834,499.92 x 25%ist yr 458 624.98 [2nd yr 458,624.98 [3rd yr 458,624.98
$789,697.09 x .25%'ist yr 197,424.27 J2nd yr 197,424.27
tet yr 39,034.04
1,045,570.43
Page 7 of 7
ITEM10
Unit Statistics:
Bradley Lake BPMC
September 25th,2015
Operators Report
Generation Unit 1 (MWhrs)Unit 2 (MWhrs)Total (MWhrs)
August 2015 12,461 23,765 36,226
Hydraulics Avg.Lake Level (ft)Usage (ac ft)Fishwater (ac ft)
August 2015 1,161.7 26,639 6,078
Lake Level -September 22 -1,159.8',attached graph provided by Burke Wick
Projects:1)Nozzle Refurbish,Unit #1 -The project began on July 15"and was completedonAugust16".Unit #1was returned to service on August 17".Overall the
project was 33 days and included over 3,990 man hours.The original schedule
was 6 days/week at 10 hours per day.Due to additional work scope the project
was expanded to include two and 2 weeks of 12 hour days/7 days per week.
Unit #1 Additional work scope hours and repair costs post inspection:
$54,000 A.Nozzle piston rod refurbish (Alaska Roteq)
$37,174 B.Additional work scope hours,parts,and tools
Part preparation and manufacturing ($2,274)
Additional spiral case corrosion repair ($12,800)
Runner dye penetrant ($10,700)
Runner pit and needle body coal tar coating ($11,400)
$29,117 Unit #1 contractor cost adjustment if approved
$120,291 Total unit #1 additions
Unit #2 Estimated additional work scope hours and repair costs:
$54,000 A.Nozzle piston rod refurbish (Alaska Roteq)
$37,174 8B.Additional work scope hours,parts,and tools
$82,602 Unit #2 contractor cost adjustment if approved -
$173,776 Estimated total unit #2 additions
$120,291 Unit #1 additions
$173,776 Unit #2 additions (Estimated)
$294,067 Total estimated additions
($115,000)Budgeted contingency money remaining
$179,067 Total nozzle project costs above estimates (Unit #1 and Unit #2)
Bradley Lake Operator Report Page 1
A.Nozzle piston rod refurbish -($54,000)Alaska Roteq of Wasilla removed the
failed chrome coating and applied a Nickel Alloy coating that is more durable
and more corrosion resistant than Chrome.The process involved removing the
damaged chrome and applying a Hi-Velocity Oxygen Fuel (HVOF)Nickel-
Chrome Alloy coating.The coating is then ground and sanded to achieve
proper dimensions and finish.They have a significant amount of experience
utilizing this process to repair pumps and shafts used in highly abrasive
processes throughout Alaska.
B.Additional work scope,parts,and tools (Total $37,174)
e Parts preparation and manufacturing -($2,274)
e Spiral case corrosion repair -($12,800)108 additional man hours,(3 men,
3/12 hour days)-Removing the nozzles from the spiral case wall enabled the
case to be completely drained,dried,and inspected.Several areas of
corrosion and coating damage were located.The corrosion was removed
and the areas recoated with a two-part epoxy paint that is more durable than
the original painted coating.
e Runner dye penetrant -($10,700)90 man hours (3 men,2.5/12 hour days).
The runner was inspected with dye in 2012.Some rock pings were found
and since the nozzles were out of the way and the spiral case coating was in
progress the remaining crew preceded with a complete dye test of the
runner.No cracks or problems were located.
e Runner pit and needle body additional coal tar coating -($11,400)96
additional hours (4 men,2/12 hour days)It was anticipated that all thenozzles,dividers,and approximately 10 ft?of runner pit wall would need
recoated with coal tar coating to prevent future corrosion.Removal of old
coal tar and wall preparation to find a suitable mating surface exposedapproximately20ft?of wall that needed to be coated.Additionally the
needle bodies had significant corrosion on coated surfaces.NAES crews
applied over 25 gallons of coal tar to properly prevent corrosion on the
needle bodies and runner pit walls.
Bradley Lake Operator Report Page 2
Operations and Maintenance:
1)Tie line trip August 21.Both Bradley Units entered into divider mode due to
high system frequency during the tie line trip event.(refer to the attached graph).
2)MWH bradley management audit -Stanley Hayes and Stephen Baughn of MWHwereonsiteAugust25".Due to the compressed time schedule they did not
visually view the road or dam facilities.Supporting documentation was provided
regarding Bradley stationary and rolling equipment.Job duties,staffing,work
management,and site logistics were reviewed.
3)Annual vibration testing and inspections -Reggie May of Associated Services wasonsiteAugust24"to conduct annual equipment vibration testing.Unit load
was varied to allow for testing of the turbine/generators.One depression air fan
demonstrated slightly higher vibration.The rubber coupling will be inspected
during the unit #2 nozzle outage.
4)Annual crane inspections -Washington Crane inspected and certified all site
cranes and hoists August 18-21.
5)EERC inspection -Glenn Koester and Bryan Carey were on site August 27"to
conduct a facility inspection.A pre-inspection report including all maintenance
and inspections was provided to the inspector.The only recommendation from
FERC was to remove brush from one small section of the spillway/rock
embankment.This work is complete.
Bradley Lake Operator Report Page 3
BRADLEY LAKE LEVEL
September 21,2015
with target level
1190
1180
1170 +s
1160
=-_-™S™1 ny Mane190 NS1130fVA-S -™--96-'971120S-LZ - ™"™.oman Average1110BAASwN.Spill
1100 we Minimum
1090 Nr 15-16
1080 +-----aan ene aaa1070Minimumoe
1060
20-11-Jul1-Aug 22-12-3-Oct 24-14-5-Dec 26-16-6-Feb 27-20-10-1-May 22-
DATE Jun Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Divider 8-21-15 -HSR
8/21/2015 11:02:33.000 AM
The dividers traveled from 89%to 7.9%
In about 2 seconds.Then it took al-
most 4 seconds to open them back up
1PH-GEN-MWT-SM.UNIT{@NEU1 M WATTS SMOOTH 13.189 MW Scale:72.000 -72 Actual Value 9 I chan2PH-GEN-MWT-SM.UNIT1@NEU2 M WATTS SMOOTH 7.451 MW Scale:72.000 "72 Actual Value |*°42%.\have some control changesSON-XLN-FRQ.UNIT1@NETO SOLDOTNALN FREQ 59.190 Hz Scale:65.000 55.000 Actual Value |from Emerson to speed up the open-DRG-XLN-FRQ.UNIT{@NETO DIAM RDG LN FREQ 59.330 Hz Scale:65.000 55.000 Actual Value |a1ND1-POS-FOBK.UNIT1@NET U1 NEEDLE 4 POSITION FEEDB 15.772 %-Scale:100 0.000 Actual Vatue |ing time.!will implement those chang-2ND1-POS-FDBK.UNIT1@NET U2 NEEDLE 1 POSITION FEEDS 10.301 %Scale:100 0.000 Actual Vatue tod1DV-POS-FDBK.UNIT1@NETO U1 DIVIDER POSITION FEEDBA 74.651 %Scale:100 0.000 Actual Value |&S today.2DV-POS-FDBK.UNIT1@NETO U2 DIVIDER POSITION FEEDBA 71.513 %Scale:400 0.000 Actual Value
10:54:48
__-Divider 89%he
_58.551NN)_utaas mw p Sassi
U2-44 MW 64.066
-90.660
90.660
-90.66010:54:53 90.660
J Freq.61.14 eo
U1-5.4MW_U2-5.2 MW
-60.589
BE -60.589
55.792
55.792
=7.924
7.924
b-7.924
7.924
SK OSFreq-58.7
10:54:54
10:54:50 Divider -42%
/Divider 7.9%
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BLPP Nozzle Rebuild RFA
Unit I
Subsequent to start of work on Unit 1,contractor claimed a bid error in rate
derivation for millwright craft labor.Billing at the rate named in their proposal
would result in a direct loss to them of about $7 per man hour X 4,155 man-hours.
No other cost element of the contract includes any overhead or profit.Contractor
has requested an adjustment to the billing rate for Unit 1 work sufficient to cover
their direct cost of expended labor for the affected craft.HEA analysis supports
the claimed costs.
Cost of craft labor per requested adjustment:$391,522.49
<Cost of craft labor at bid rates x actual hours>:<$362,405.35>
Cost of requested adjustment:$29,117.14
Unit 2
Contractor has requested a further adjustment to millwright craft labor rate for
work on Unit 2 that will correct the bid error and include allowance for overhead
and profit.Contractor is willing to accept a Suspension of Work on Unit 2 until +/-
June 2016 with no other cost impact.O&D Committee has passed a resolution in
support of this suspension,recognizing additional costs would apply.
Increase rates per request (4,155 m/h):ADD $_82,602.92
For reasons to be presented at the meeting,HEA is requesting the BPMC direct
our course of action in responding to these RFAs.
HEA |Maynard Smith 9/25/15