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HomeMy WebLinkAboutBradley Lake Project Management Committee Regular Meeting Agenda July 30, 2015_.NangSsSYPbBRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING AGENDA Thursday,July 30,2015 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 --May 29,2015 OLD BUSINESS A.Battle Creek budget and project discussion AEA B.Long Term Financing options Budget committee C.AEG&T to MEA signed consent form Kirk Gibson NEW BUSINESS A.Election of Vice-Chair Kirk Gibson B.Resolving dispute discussion update (Res 14-11)Kirk Gibson C.FY 2015 and FY 2016 Budget Amendments Budget committee D.Local control of Bradley during islanded condition Chugach Electric COMMITTEE REPORTS A.Budget Committee B.O&D Committee OPERATORS REPORT COMMITTEE ASSIGNMENTS MEMBERS COMMENTS NEXT MEETING DATE --Sept.25,2015 ADJOURNMENT Bradley Lake Project Management Committee Thursday,July 30,2015 @ 9:30 A.M. **PLEASE WRITE LEGIBLY** NAME ORGANIZATION Quvay Lfpzesea ABD ae Ane \htA Aftdio Myre cmrn Met? LAU GIBSON)MDeoel Gadsar +Gitsxw Coan.KitSecny GV2ZA Rn b Sarton Be0awie Sy (Zi - PY\an Owwers HA Bian BPs yor KUT AGO BAKE (UAL CHOKES Kell Veo cy ACA. LATO Hea Doak nv Oro (Ke Ke A DSran Were CEA TeSe Warner MLaP Ad \en Ge av AV2A ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY BOARD MEETING gy BPMC 7/30/15 First Second First q ,{Second First |Second,Firs»Second _First Spcopqio7werWs 5 Roll call from top to bottom ending with Chair Roltcall Agenda Minutes CY 1Cast vi ce Chay Yes No Yes No Yes No Yes No Yes No Homer Electric Association VA uv Matanuska Electric Association Lv A City of Seward W a \Ww Alaska Energy Authority YY a N Municipal Light &Power 4 uw Chugach Electric Association WA waa Golden Valley Electric Association A waa LZe Thy brent First Second First Second First Second First Second First Second Cy KS Roll call from top to bottom ending with Chair Fy (6 Yes No Yes No Yes No Yes No Yes No Homer Electric Association A Matanuska Electric Association YY City of Seward Alaska Energy Authority ae Municipal Light &Power Y Chugach Electric Association WA Golden Valley Electric Association WA NextMeeting:Friday,Sept25.seek ea tes a F 4G,FAWL eghmMens asubm.ved .Fal,ob space Ragmnse dve 3 iu 1B SVC -Busyet COW Mor Sto Finkeey RO Rnd FYlig Gren EVIL\eant casteophm .Ayr Crease OP powar -?7.2MSnorttert,[ong term Dorraway CHAO opshonn -yr DY wh |bnew pCERS000increaseeayr.r a yrs1C-PS*apph to MEP Cactivg or VER Cornered dele Dag aae Bik Ke dedliwed lee Valedlin $2 Rick PalQwrin tbo repled .dame statement Ff dapute-Undhange JDoinbhigahon(om detal)ottinenta notbs vad)not thru BPMCUpdeteJeptuo.e+-sided WlubbtesREAthyBao-no decision Made .NO,yuste chon Consbsn10)Ree outhor hy 1s bens dec.dedHow4penforceRes(U-\\7 Mihatton proceés GQ agreed,Resualt if fee Nat Ws upportSoe-aot uikatrn but Tubing ort easLee-drape,ces Kccorduna te Puleo F COM vp wo]dccisrdn42.06 "Bend tonVeneants.Nah Fy bend hetdor.Seperation ROA AEA council C Buda 3D Cén sdb yesterday W)REA.WED newer bee CER contro?Fesolved ,Hand out Jp Serv Agrectrerd,Ms Cvmunicah on direction -AY agrees at Wao YeadvedA &aN ublree need te have.bet Menonm us|o. 1B nothing 1D Opmnatice repock -Alan OwensWV.ire wlIBB On RA coed eH doe P&EG4AT IZ Sona-ty foe BL AOUCorybretronddctBLIDWLWoldILEBINGtourval own Vawloovra 48 . Max a2 pots of coffee Far Mechnag eosWnn this Agreement;provided,that Chugach will not deny such services to the Wheeling Utilities for any other reason: provided further,that in meeting the safety,efficiency; and economic needs of its system,Chugach shall not,to the detriment of any Wheeling Utility,operate its system dif- ferently from the manner in which Chugach could and would have prudently and economically operated that system if the Bradley Lake Energy of the Wheeling Utilities did not ex- ist. (ii)Nothing in this Agreement shall require Chugach to install or operate any generating unit that Chugach would not otherwise have installed or operated,or require Chugach to purchase any power (other than Bradley Lake En- ergy of the Wheeling Utilities)that Chugach would not oth- erwise have purchased,for the purpose of providing ser- vices to any Wheeling Utility;provided,that unless Chu-gach's performance of a previously confirmed service sched-|ule is excused by Force Majeure or Forced Outage under Sec- tion 8,Chugach will operate its generating units to the extent necessary to perform any service schedule that the Dispatcher has previously confirmed in acccrdance with the provisions of Section 8. (iii)The Parties recognize that at the time this Agreement was entered into,Chugach had begun negotiatingwithproducersofnaturalgastoagreeuponnewarrange-QOmentstoreplaceChugach's then-existing natural gas fuel supply arrangements;that the results of such negotiations are impossible to predict;and that the possible outcome(s) of such negotiations may include a change in the locations at which it is most economic for Chugach to generate elec- tric power for its own system use;and consequently that the availability of services under this Agreement may beaffectedbytheoutcome(s)of such negotiations. SECTION 8.SCHEDULING OF SERVICES (a)Duties Of The Dispatcher.Chugach will provide a Dis- patcher (or Dispatchers)on a 24-hour basis.Until such time as all the Parties or their successors have agreed upon and imple-mented a system of power pooling of all generating units within their ownership and control (under which system the output of all power generated is purchased by or otherwise equitably ac- counted for by the pool),the Dispatcher's duties shall include: (i)Dispatching power generation at the Bradley Lake Project in accordance with the requests of the Parties,the availability of services under this Agreement,and the ap-plicable operating criteria or guidelines adopted by the Project Management Committee; SERVICES AGREEMENT FOR BRADLEY LAKE ENERGY ?.(ii)Scheduling of wheeling,storage,and energy pur- chase services for the Wheeling Utilities under this Agree- ment; (iii)Notifying the Wheeling Utilities of operating limitations that may reduce Chugach's ability to perform fully any service schedule that the Dispatcher has previ- ously confirmed;and (iv)-Coordinating with HEA:in order that the Dis-patcher and HEA alike will minimize,to the extent reason- ably practicable,any potential conflicts between and among (A)HEA's system operations,(B)Chugach's system opera- tions,and (C)the dispatch of Project generation and the provision of services to the Wheeling Utilities in the man- ner contemplated by this Agreement. In addition,by agreement among the Dispatcher and authorized representatives of the Wheeling Utilities (which agreement the Dispatcher shall reduce to writing and copies of which the Dis-patcher shall provide to all Parties),the Dispatcher and suchrepresentativesoftheWheelingUtilitiesmayfromtimetotimemodifytheschedulingproceduressetforthinSection8(b),inthefirstsentenceofSection8(c),and in Section 8(d),if and to the extent that the Dispatcher and such representatives of the Wheeling Utilities determine that such modification of scheduling procedures would suit their mutual convenience.No modification of such scheduling procedures so agreed to shall require the approval of the governing boards of the Parties in order to become effective. (b)Requests For Wheeling Schedules.Not later than 12 noon on each weekday (Monday through Thursday),each Wheeling Utility shall notify the Dispatcher of the quantity of BradleyLakeEnergyforwhichitrequestswheelingservicesduringeach hour of the immediately following day (Tuesday through Friday). Not later than 12 noon on Friday,each Wheeling Utility shall notify the Dispatcher of the quantity of Bradley Lake Energy forwhichitrequestswheelingservicesduringeachhourofeachof the immediately following three days (Saturday through Monday). Chugach reserves the right to require scheduling for all days oftheweekonadailybasisinaccordancewiththefirstsentence of this Section 8(b)if Chugach determines,after a reasonable period of experience,that scheduling on Fridays for the three following days is not satisfactory to Chugach or to any or all of the Wheeling utilities. (c)Confirmation Of Wheeling Schedules.If,consistent with the duties and limitations set forth in Section 7,the Dis- patcher is able to confirm the wheeling schedules requested un- der Section 8(b),he or she shall do so through oral communica- tion with the requesting Wheeling Utilities initiated not later than 5 P.M.on each day for the immediately following day days,if the second sentence of Section 8(b)applies). (or Once the SERVICES AGREEMENT FOR BRADLEY LAKE ENERGY Page 10 ITEM6 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Alaska Energy Authority,Anchorage,Alaska May 29,2015 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]);Jeff Warner (Anchorage Municipal Light &Power [MLP]);John |Foutz (City of Seward);Harvey Ambrose (Homer Electric Associationn [HEAI).3.!PUBLIC ROLL CALL (for al others present)Jocelyn Garner,Kelli Veech,Teri Webster (AEA).Brian Bjorkquist (Attorney General's Office {AGO]);Brian Hickey,Burke Wick (CEA);Ron Woolf (GVEA);Bob Day,Alan Owens (HEA);Kirk Gibson (McDowell Rackner &Gibson);Mark Johnston (MLP);Bernie Smith (RegulatoryCommissionofAlaska[RCA]);Miranda Studstill (Accu Type Depositions).Participating byphone:Emily Hutchison (HEA).-: 4.|AGENDA COMMENTS!MOTION FOR APPROVALChairBorgesonaddedItem7C.Assignment of AEG&T toMEA.Mr.Ambrose requested anadditionof7D.Bradley Junction Switch Removal Outage.The agenda was approved as amended. 5.PUBLIC COMMENTS None. 6.APPROVAL OF PRIOR MEETING MINUTES -Mar.19,2015 MOTION:Mr.Griffith made a motion to approve prior meeting minutes of March 19,2015. Motion seconded by Mr.Ambrose.The motion passed. 7.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) Mr.Wick advised the O&D Committee has been meeting to resolve the issues brought up by HEA in their January 24,2014 report regarding Resolution 2013-03.The O&D Committee believes the BPMC's intent of the resolution was not to treat the project as a new project coming DRAFT BPMC Minutes 5/29/15 Page 1 of5 online.Mr.Wick informed there are no significant investments of money required to bring the project into compliance.Mr.Wick believes a number of issues mentioned late in the report, including spin and load balancing area,will have to be readdressed in light of yesterday's decision from the Superior Court.The memo defining all of these positions has not been released.Mr.Wick stated more work could be identified through the upcoming management audit. Chair Borgeson summarized the Superior Court ruled the RCA does not have jurisdiction over the Bradley Lake issues on the tariff rates that have been filed by HEA.Mr.Lee added the Superior Court vacated Order 10 from the RCA.!n light of the Superior Court's ruling,Mr.Lee suggested postponing action on 7A.and 7B.until further review can be completed.Mr.Griffith commented the court ruling essentially sets the framework to what it was on December 30th, 2013. Mr.Ambrose noted HEA struggled with understanding the objective of the resolution because the reliability standards for compliance pertain to the dispatch operation of transmission systems and not the operation and maintenance of power plants.Mr.Ambrose requested the O&D......Committee provide HEA with a list of what to complete to bring the project into compliance.Mr.Wick noted the O&D Committee does not have a list of specific recommendations at this timeandthereisnoimmediateresponseneededfromHEA.The 08D)Committee will providerecommendationstoHEAasstheyalareidentified." /B.Consideration of HEA's disputes not addressed iin1 the "Statement of;Disputes"dates Jan.23,2014 per Resolution 14-11Mr.'Griffith discussed Resolution 44-11.The biggest iissue remaining is5 the spin allocation.HEA has accepted dynamic scheduling.Chair Borgeson requested to hear from HEA to ensure their dispute issues have been addressed.Mr.Ambrose noted HEA did not agree the issuesbroughtbeforetheDisputeResolutionCommitteeweredisputableunderthecontract.:Mr.Ambrose reminded the members that Mr.Griffith asked HEA to provide the Dispute ResolutionCommitteewithHEA's list of laments...HEA provided a list of what they believe are breaches of contract.Mr.Ambrose informed HEA is satisfied with no action being taken on the statement of disputes at this time.Mr.Ambrose stated the agreement of dynamic scheduling has unresolved issues regarding compensation to HEA. Chair Borgeson granted HEA's request to withdraw resolution of their disputes.HEA can bring those disputes back before the Committee at any time. Mr.Thibert wanted the record to reflect that CEA is not in agreement with all of the disputes listed in HEA's statement of disputes.CEA is willing to agree with no action being taken at this time. C.Assignment of AEG&T to MEA Mr.Gibson provided hard copies of emails summarizing the work completed by Mr.Bjorkquist and himself.Mr.Gibson noted the opinion from MEA's attorney should be presented before any signatures of consent are given.Mr.Gibson will provide the Committee MEA's opinion and his representation that a satisfactory opinion has been received.The utilities are then asked to return the signed consent form.All processes should be completed before July 1,2015. DRAFT BPMC Minutes 5/29/15 Page 2 of 5 D.Bradley Junction Switch Removal Outage Mr.Ambrose requested Mr.Day present the report.Mr.Day said this is a slow moving project since it was first initiated about three years ago and then the project was put on-hold.The switches are inoperable and are in disrepair.The project would remove the switches and therefore Bradley Junction would no longer be a switch station. The awarded contract is scheduled for June 22-29,2015.At the utilities meeting last week, Enstar informed they are completing work,which will heavily impact ML&P during the June 22- 29 time period.The best option for moving this project work is either in late August or late September. Mr.Day advised this project is part of the current operating budget that expires the end of June. He requested the Committee entertain a motion to amend the budget and move these monies to next year's budget to accommodate this request from ML&P. MOTION:Mr.Griffith made a motion for the Bradley Junction switch removal project bemovedfromthisyear's budget to next year's budget,if necessary,as a result of theEnstaroutageforML&P*Ssconsideration.Motion seconded by Mr.Warner.Mr.Ambrose noted Mr.Day's proposal was different than what theyhad discussed earlier today.Mr.Ambrose stated he is supportive,if this is what works best for ML&P.He noted there will bechangeordercostsassociatedwiththeprojectdelay.Mr.Ambrose asked if the option ofbackingupML&P has been discussed.Mr.Day noted the option to delay isis the best choice andtimeisrunningout.-,.. Mr.Warner advised the ssituation iis5 still very fluid and ML&P continues to have ongoingdiscussionsregardingalternativessotheprojectcanmoveforwardasscheduledinJune.Mr.Thibert requested more informationon scheduling to perhaps assist in providing back-up.Mr.Wick suggested the motion allow the work to proceed eitherin this fiscal year or next fiscal year.This would provide flexibility to determine the best schedule for all parties.The motion was revised: MOTION:If necessary,the amounts included in the FY2015 budget for Bradley Junction switch removal shall be moved to the FY 2016 budget to accommodate the needs of the ML&P operations and the Bradley Lake project should the switch removal not be completed prior to the end of the 2015 fiscal year.Motion passed. 8.NEW BUSINESS A.Dynamic Scheduling Mr.Wick provided a memo he wrote to the BPMC Chair concerning dynamic scheduling of Bradley Lake.No significant software investment is required to begin.The plant will be treated as a jointly-owned unit going forward and would allow dynamic scheduling by all of the participants.CEA and ML&P would begin first on June 1,2015,followed by the other utilities throughout the summer.Each utility will bear its own cost for platform compatibility work.Mr. Wick stated daily reports will be provided showing each utility's Bradley Lake use. Chair Borgeson expressed his appreciation to CEA for their efforts in making dynamic scheduling possible for Bradley Lake. DRAFT BPMC Minutes 5/29/15 Page 3 of5 B.Long Term Financing of Capital Projects Ms.Fisher-Goad invited Ms.Garner to provide the overview of long-term financing of capital projects,including the possibility of combining the Battle Creek Project with the $7.2 million cost of the SVC repairs.Ms.Garner explained the goals,considerations,cash flow needs,and the short-term and long-term financing options of the SVC project.The staff recommendation for financing the $7.2 million SVC project solely is using short-term financing from CoBank and the R&C Fund,and long-term financing of 50 percent from USDA's Rural Utilities Service (RUS) program funding and 50 percent from CoBank.The staff recommendation for financing the SVC and Battle Creek Project together at a total cost of $57 million is short-term financing from Co- Bank and the R&C Fund,and long-term financing of 50 percent from RUS and 50 percent from CoBank or bonds,depending on the market. Ms.Garner requested the Committee provide direction on which funding options should be implemented.The legal expenses incurred have been expensed to the BPMC administration fee.Going forward,the legal and transaction costs will be expensed to a separate financing line item on the O&M budget,estimated at $150,000.,The first payment for the SVC Project should .begin |in September 2015.: Mr.Griffith commented the option of combining the financing for the SVC repairs with BattleCreekisinteresting,but the funding mechanism for Battle Creek has not been resolved andwouldhavetobedeterminedbeforesuchanoptioncouldbeconsidered.Mr.Thibert noted CEA would support having short-term financing,for the SVC replacement andthenlonger-termfinancing with Battle Creek.Chair Borgeson expressed his appreciation tto Ms.Garner for her thorough work.Herecommendedeachutilitydiscussthisinformationwithitsfinancingstaff,and theiissue will bebroughtbackbeforetheCommitteeatthenextmeeting.Mr.Warner expressed his appreciation for the ongoing work and efforts to determine the best financing options for the estimated repair work of $7.2 million.Mr.Wick indicated actual construction bids are expected to be received in June,and if the $7.2 million increases,it will likely be an adjustment of the FY17 numbers. 9.COMMITTEE REPORTS A.Budget Committee Mr.Woolf,Chair of the Budget Committee,reviewed the financial statements provided to the Committee.The budget is under budget year-to-date. B.O&D Committee Mr.Wick stated his information has already been reported during the meeting. 10.OPERATORS REPORT Mr.Owens and Mr.Ambrose reviewed the operators report provided to the Committee. DRAFT BPMC Minutes 5/29/15 Page 4 of5 11.COMMITTEE ASSIGNMENTS Chair Borgeson asked Mr.Gibson to request HEA engage in resolution discussions.Chair Borgeson requested the Budget Committee provide a response to the SVC financing options at the next meeting. 12.MEMBERS COMMENTS Mr.Griffith recommended the utilities meet to specifically discuss Battle Creek. Mr.Thibert agrees a discussion needs to occur regarding Battle Creek.He expressed his appreciation to the Finance Committee and AEA for their thorough work on the review. Mr.Ambrose thanked the Finance Committee and AEA for their hard work.Mr.Ambrose requested clarification on what funding is currently needed for Battle Creek.Ms.Fisher-Goad explained the engineer change has affected the timing and budget for the design.She noted each Committee member has received information on the potential budget amendment,whichwouldbebroughtbeforetheCommitteebeforetheBattleCreeklicenseamendmentiisresolved.Mr,Ambrose agreed the utilities need to meet soon to discuss Battle Creek.-, Chair Borgeson requested a Battle Creek budget report be presented at the next meeting. Chair Borgeson noted he will work with the utilities to schedule a strategic meeting,outside of the BPMC,to discuss Battle Creek.He expressed his appreciation for all of the reports today.ish NEXT MEETING DATEThenextmeetingdateissetfor July 30th,2016.The schedule for meetings will remain everytwomonths.:' 44,ADJOURNMENT.There being no further business for the committee,the meeting adjourned at 11:23 a.m. BY: Cory Borgeson,Chair Attest: Sara Fisher-Goad Alaska Energy Authority,Secretary DRAFT BPMC Minutes 5/29/15 Page 5 of5 ITEM 7A Battle Creek BPMC Status Brief Licensing e Amendment application was submitted to FERC March 13,2015. e State and Federal resource agency comments were received. e Working with FERC counsel to develop appropriate response to agency comments. e AEAresponse due to FERC by August 14". Engineering e Latest design uses a pipe conveyance versus a canal conveyance e Current construction cost estimate is $49,095,000 +/-23.5%(Does not include IDC) e Recommend final design to be delayed until license terms and conditions are established with the license amendment. Budget (in thousands) sources Bradley R&C State RE Fund Grant Total Expenditures Engineering -Field Engineering -Non Field USGS Environmental Total Encumbrance $209.0 Remaining $85.0 $1,170.0 $3,000.0 $500.0 $4,670.0 $1,527.0 $2,182.0 S$300.0 $368.0 $4,376.0 now 'OktEr consulvarts /Oua engmeanes Tor Past yr \t9R Pruds,be shysles xdeé. Estimate needed for final design &plans $450.0 (in addition to remaining funds) Timeline Assume AEA and resource agencies agree to potential license terms e FERC could provide amendment by Jan 2016. e BPMC decision will be required to advance project after license amendment e Financing agreement early 2016 e Project construction bid late 2016 ¢Construction 2017 and 2018 If resource agencies comments and AEA response result in FERC dispute resolution process schedule will be pushed out at least 1-year. Waster ra)death FERC Finding 1/04/264.47abtCACHE3DPROJECTS.00086-04\06CAD\CIVIL2014-CT-LV-90004-04BHCENSTNG UPPER BATTLE CREEK | fh TO BRAOLLY LAKEg3 FERC 422KORADLEYLAKEHYDROELECTRICPROJECT,BATTLE CREEK DIVERSION Mourns Ft PRELIMINARY Net ter Construetien Criucatl Enargy Inftastructisc information EXHIBIT F DROEMBER 2014 PL Pan OF, \DOWL HKM wom oy -aa =(HM Ikeaaote Th Oe te aden aPeeTTTTITTTP-8221--AK ITEM 8B McDowell Rackner & Gibson PC Oo 6 ©6 6 KirK GIBSON Direct (503)290-3626 Kirk@mcd-law.com July 23,2015 Sent Via Email and U.S.P.S. Mr.Harvey Ambrose BPMC Representative Homer Electric Association,Inc. 280 Airport Way Kenai,AK 99611 Re:Bradley Lake Project Management Committee;Resolution No.14-11 Harvey: |am writing at the behest of the BPMC Chair in an effort to restart the discussions between the parties to resolve the outstanding issues involving HEA.There are many pressing issues facing the Railbelt Utilities;the subject matter of Resolution No.14-11 should not be one of them. Discussions between the parties involved in the disputes need to take place.The BPMC is the best positioned body to address every party's concerns efficiently and practically. The BPMC adopted Resolution No.14-11 effective May 8,2014.While there have been discussions intermittently between the parties involved in the disputes,there has also been,and continues to be,considerable litigation.The positions put forth by the parties in the various venues indicate that there is some common ground among the parties. The BPMC recognizes that while power continues to be delivered from the Project,a few of the actions required by Resolution No.14-11 have not been completed.The BPMC would like to move forward with its adopted solution to the BPMC Dispute Resolution Committee but prefers that the matters be resolved amicably. Phone:503.595.3922 e Fax:503.595.3928 =www.mcd-law.com 419 Southwest 11th Avenue,Suite 400 Portland,Oregon 97205-2605 July 23,2015 Page 2 Please indicate your interest in resolving the issues that remain at an impasse with the BPMC by responding to me as soon as practicable.Thank you. Kirk HJ Gibson | McDowell Rackner&son PC Counsel to the BPMC Sin cc:BPMCBradley Janorschke,General Manager -HEA Bob Day,BPMC Representative -HEA 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 ......cccccssssesssseeecescesneresecesceseeseeeaenscessessessseasenseseesceseesaeesescaeesaesseeseeeseeseesaeesees Il.BACKGROUND une.eeeeeeceesseeseeseeseterseesceceeaeecesecseeaceneeaeeseeseseessessossesssedesaessesecsseegeusnaseaeey TI.THE PARTIES'POSITIONS...eee eeeeseceetsecseceseeseesecsecseseeescesscesecsaseseesseesseaeeneeenes A.HEA'S Position 00...ce eeessceesecsseccsscessessevsneesseonseessecsseceseessesseacaeesseessssecasesseaseesseersnasenss B.The Designated Utilities'Position...ccc cesesscssceecsssteerecesssesensessecessseeeesseneeees IV.FINDINGS OF FACT AND CONCLUSIONS OF LAW...ec ceeeseeeceeecneceseeseeeeeneetsees A.The Disputed Issues Arise under the Bradley Lake Agreement ..........:cccccescccsseseecessceseeescessaseseesseceseesssessecessesseonssceseeeseceseeesssesasonaerseae B.The BPMC Has Authority to Consider and Resolve Issues Arising Under the Bradley Lake Agreement..........eee eeeeeeeseseeesseeneeeseeeenees 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 .....ccc cc cccecesccssecesecesseesscecesseeesseeeseeceeeceeaeessneeensececseeesteeeensasenseeetaners 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.0.0...ee eeeessesscreesesseseseseeeseens V.RESOLUTION .....ccccccccscsssscesessseseeencescesecsecseseeeesessceseescescesssaesceseceseseeeasecseeacensseaseaeseeeenes 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”). 3 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. 5 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. 6 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.”). 12,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 IH.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 "[n]Jo 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.2°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.2°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.”®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.*°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 "[aJrrange 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 services for 50 years.*®The shorter term of the Lease is never mentioned in the Services t.°°Significantly,the Services Agreement does not limit Chugach's rights orAgreemen 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."**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 EER&G@ING this_2_day of Mow 2014.Soeetlyy,§[goer DE Evans2é%*e,1 978..."Sy air %eeneee <%ASny,ee\ie x "adCOSaraFisher-Goad Secretary Resolution 14-11 Resolving Dispute between Utilities Page 18 of 18 ITEM 8C ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT 2015 Budget Amendments Summary Adopted Amendment 1 -11/17/14 BPMC meeting 1)R&C -reallocate Governor budget to Turbine Nozzle Repair Adopted Amendment 2 -3/19/15 BPMC meeting 1)Increase transfer to operating reserve Reason:Budget transfer to operating reserve was opposite than the actual transfer445weeCorrectbutPaperwork2)Increase interest income Reason:Increased interest income to reflect actual interest income Proposed Amendment 3 * 1)Increase R&C repayments Reason:FY14 actual disbursements column was as of 12/31/13 ($1,285,456.70)in original budget,it was updated to reflect FY14 actual disbursements through 6/30/14 ($1,834,499.92) The FY14 disbursements affects the FY15 repayment amounts (25%of FY 14 disbursements will be repaid in FY15) FY15 actual disbursements was updated to reflect actual disubursements through 6/30/15 ($771,146.20). The FY15 disbursements affects the FY15 repayment amounts (25%of FY15 disbursements will be repaid in FY15) 2)Increase non R&C fund capital purchases Reason:DCS Security Interface for Data Access project was budgeted for in FY14,but paid for in the FY15. The capital purchases budget was increased by $141,704,the actual expenses in FY15 for the DCS. 3)Increase debt service payments Reason:Debt service interest and principle must be transferred from the revenue fund one month prior to payment due date (June 1). Original budget was based off actual payment due date (July 1). 4)Decrease O&M Operating expense Reason:The Bradley Junction Switch Removal Project has been postponed to FY16. The FY15 O&M budget of $210,000 was moved to the FY16 budget. 5)Adjust the transfer to(from)the Operating Reserve account Reason:Due to the increase from the FY14 required operating reserve balance. The required balance in the Operating Reserve account is 20%of the current year O&M budget. 6)Increase Utility Contributions Reason:To reflect change 1,2,3,4 and 5 above Page 1 of 8 OVERVIEW OF BUDGET CHANGES BETWEEN FY14 AND PROPOSED FY15 FY14 Utility Contributions 17,674,624 Schedule A Increase in projected interest earnings Decrease in Non R&C Capital -See A1 for detail Decrease in debt service Increase in projected arbitrage transfer Increase in Operating Reserve Increase in O&M Operations Increase in R&C Fund Repayments (358,650) (193,796) 370,900 2,000 72,536 591,832 (64,718) TOTAL 420,104 FY15 Utility Contributions 18,094,728 Page 2 of 8 BRADLEY LAKE HYDROELECTRIC PROJECT changes made by Amend 2 highlighted -see 3/19/15 BPMC meeting minutes Schedule A changes made by Amend 3 highlighted -PROPOSED FY2011 FY2012 FY2013 FY2014 FY2015 FY2015 FY2015 FY2015 ©FY2015 INC(DEC)FRM TUALS ACTUALS ACTUAL Amended Budget Amend 2 Budget Amend 3 Budget Amend 2014 AMENDEDREVENUES,EXPENSES &CHANGES IN SURPLUS Budget Original change =Amended 3-19-1§change Proposed BUDGET REVENUES UTILITY CONTRIBUTIONS 15,814,310 14,634,942 16,176,157 17,674,624 17,574,314 0 17,574,314 520,414 18,094,728 420,104 INTEREST INCOME 1,905,127 1,959,302 1,936,516 1,500,900 1,451,040 408,510 1,859,550 0 1,859,550 358,650 OTHER MISC INCOME 0 0 0 0 0 0 0 0 0 0 STATE OF ALASKA BATTLE CREEK FEASIBILITY GRANT 0 22,637 477,363 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 17,719,437 16,616,881 18,590,036 19,175,524 19,025,354 408,510 19,433,864 520,414 19,954,278 778,754 EXPENSES OPERATIONS 4,174,014 3,540,297 3,928,577 4,828,670 §,630,502 0 §,630,502 (210,000)§,420,502 591,832 RENEWALS/REPLACEMENTS (R&C FUND REPAYMENTS)802,925 419,007 1,142,155 1,430,574 1,250,318 0 1,250,318 115,538 1,365,856 (64,718) NON R&C FUND CAPITAL PURCHASES-SEE A1 309,822 401,579 554,627 475,500 140,000 0 140,000 141,704 281,704 (193,796) GRANT FUNDED PORTION OF BATTLE CREEK FEASIBILITY 0 22,637 477,363 0 0 0 0 0 0 0 TRANSFER TO (FROM)OPERATING RESERVE 97,250 (63,500)82,552 45,830 (160,366)320,732 160,366 (42,000)118,366 72,536 DEBT SERVICE (net of Capital Reserve Reductions)12,105,450 12,100,750 12,107,950 12,104,950 11,872,900 0 11,872,900 602,950 12,475,850 370,900 ARBITRAGE TRANSFER 229,976 196,112 296,812 290,000 292,000 0 292,000 0 292,000 2,000 17,719,437 16,616,881 18,590,036 19,175,524 |19,025,354 |320,732 |19,346,086 |608,192 |19,954,278 |778,754 CURRENT YEAR SURPLUS (DEFICIT)0 (0)(0)0 (0)87,778 87,778 (87,778)(0) BEGINNING SURPLUS (DEFICIT)0 0 (0)(0)0 0 (0)0 0 ENDING SURPLUS (DEFICIT)0 (0)0 (0)_0 87,778 87,778 (87.778){0) £dl BALANCE SHEET ASSETS REVENUE FUND 2,225,125 910,338 156,350 0 0 0 0 0 OPERATING FUND 944,100 1,176,630 1,310,642 0 0 0 0 0 RECEIVABLE FROM R&C 0 773,898 769,228 0 0 0 0 0 OTHER RECEIVABLES 190,270 0 0 0 0 0 0 0 PREPAID EXPENSES 5,640 5,640 §,640 0 0 0 0 0 3,365,135 2,866,506 2,241,860 0 [')0 0 0 LIABILITIES &SURPLUS LIABILITIES 1,453,862 1,297,869 1,210,449 0 0 0 0 0 PREPAID UTILITY CONTRIBUTION 0 0 0 0 0 0 0 0 PAYABLE TO UTILITIES 1,373,372 1,568,636 1,031,411 0 0 0 0 0 R&C REPAYMENT 537,901 (0)0 0 0 0 0 0 3,365,135 2,866,505 2,241,860 0 0 0 0 {')|opm 7 OTHER INFORMATION OPERATING RESERVE *902,652 910,338 910,338 965,734 1,126,100 0 1,126,100 1,084,100 MONTHLY CONTRIBUTIONS 1,446,451 1,219,579 1,348,013 1,472,885 1,464,526 0 1,464,526 1,507,894 *Required to be 20%of budgeted operating expense Page3of8 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Schedule A-1 changes made by Amend 3 highlighted FY2012 FY2013 FY2013 FY2014 FY2014 FY2015ACTUALBUDGETACTUAL=BUDGET yo Approved CAPITAL PURCHASES NOT FUNDED BY R&C FUND 12/31/2013 BudgetCathodicProtectionReplacement Halcon Fire System Replacement Acquire,develop Work Management System 30,973}0 4,999 Modify Camp Residencies--add efficiency apartments This will effectively modify the two duplexes from a 2 dwelling unit to a 4 dwelling unit;this will help support space availability for an apprentice position-FY10 and complete 3 duplex units in FY11 Exciter Stability Study Emergency/Standby Facilities Diesel Generator An emergency source of power is needed to provide backup power in case of future trouble 150,000;53,0601 with the normal facilities power.This will provide cost savings for replacement power and repairs due to frozen pipes.Originally approved in FY09,no monies spent. OCS &Vibration System 108,875}186,937,0 0.Install during 2012 outage Snow Cat with plow 0 Q 0 Originally approved $100,000 in FY10;could not find used equipment in good repair for thatprice. Replace Office Furniture 40,000 0 40,000 7,327 na originally approved in FY11,not completed.Budget subcommitte split across two Replace Furniture/Lockers/Appliances in Crew Quarters 35,848]0 0 0 0 Furniture and beds are aged and in need of repairs and replacement.Several appliances "need replacement. 'Vidmar Storage Cabinets for Shops &Warehouse 0 0 0 0 Need cabinets for efficient storage of tools,equipment,and parts and supplies inventory. Originally budgeted $40,000 in FY11 and $30,000 in FY12,no monies spent. Shop Tools Need additional tools for the power house shop and the maintenance building.Originally4,140)is)0}0}ie)-budgeted in FY11,not completed. Test Equipment 17,769)0}1,314]0}0 Test equipment is aged and obsolete,need up to date test equipment. Repiace Telephone System /Upgrade Network 20,127]20,000 252 20,000 9,395)Continue replacing old analog systems with digital. [Accusonic Flow Meter Monitoring Unit Replacement 46,000 0 0 16,422 Could not complete in FY12,Quoted price for new unit is $16,000.Originally approved ''$10,000 in FY12,no monies spent. Replace Fish Water Valve Actuators 20,000)14,636 20,000)0 20,000]Replaced two actuators,need to continue replacing actuators a few at a time. Airport and Barge Dock Building Upgrades 32,166)ie)2,457,ie}0}Long Term Maintenance Plan. Fioating Dock Repairs 19,342]0 2,096 0 0}Floating Dock floats are in poor condition.Long Term Maintenance Plan. Utility Vehicles 18,750 16,850 7,500}5,500}Tracks for Utility Vehicle for winter access;previously done with snowmachines or helicopter PT GateHouse UPS Batteries 12,701 0 0)0 0}Battery are past design ite and have reduced capacity. Replace Potable Water Storage Tank in Warehouse 1,987]is)0}0 0 Tank interior is full of rust in bottom.Replace with Poly Tank. Shop Equipment 20,527]0 2,949]0)Metal and Sheet Metal Working Equipment,Band Saw Forklift with outside capability 35,000}31,515)0 0 Originally approved in FY10,not completed-no monies spent. Insulate domestic water well head and piping 15,000)2,461 0 0;Weil piping freezing during winter Replace JEM meters with (ON meters Replace old JEM revenue meters with ION meters for better resolution and accuracy.New92,000)68,184)0}23,154 oe .meters support DNP for better communications and data collection Road Grader snow removal attachments Snow wing and front blade attachment for improved ability to remove heavy snow from35,000}34,177 0}ie).lenbankments and airport runway. Push forward not completed items from FY12 to offset cost of controls replacement.Restore Replace 160 ton Bridge Crane Controls 205,999 132,740 g 0 crane functionality.Crane needed for Aprin 2012 outage.Have received second bid,revised cost estimate down Nuka Diversion Hut 75,000 5,636 Provide storage and secure location for tractor and equipment located at Nuka Diversion Weather Stations 45,000)0 To be integraded with DCS Roof Ice Guards for Main Transformer 28,000 0 Mount guards on roof to prevent ice slides onto the generator transformers DCS Security Interface for Data Access 125,000)0 141,704[Mirrored EDS Server with serial linkGeneratorPartialDischargeMonitor145,000)94,178)Monitor aging generator to detect faults and insutation breakdowns Surveillance Cameras 30,000 15,040 Dam Safety Surveillance Monitoring Plan Lube Oil Purification System 46,000)Bid from Tech-Star for Pall HPL6 $42,993 +piping Replace 1998 Chevrolet Crew Cab Vehicle 37,000]Needs extensive engine and front end work.Replace with 4 door similar vehicle. Replace 1990 Ford Single Cab Vehicle 37.000]Venicle 's past it's usable life,non-existant safety features.Replace with 4 door crew cab type ___ 'vehicle for Supt and move 2009 Supt.vehicle into fleet. 401.579 520,625 554,627 475,500 176,652 281,704 "8 BRADLEY LAKE OPERATIONS &MAINTENANCE SCHEDULE B FY2013 FY2013 FY2014 FY2014 FY2015BUDGETACTUALVariance|BUDGET yo}|_puocer| SUMMARY {A)HEA Annual Operations &Maintenance 2,431,229 1,754,324 676,905 2,647,014 935,142 2,871,385 (B)CEA Dispatch and Substation/SVC Maintenance 133,500 316,905 (183,405)161,274 37,472 488,000 (C)Other O&M and Maintenance Projects 864,987 732,996 131,991 919,445 251,299 692,730 (0)Insurance Costs 614,490 535,894 78,596 572,237 519,652 609,637 {E)Regulatory Costs 303,714 337,277 (33,563)271,000 90,374 400,000 (H)Contingencies 0 250 (250)0 0 0 4,347,920 3,677,646 670,274 4,570,970 1,833,940 5,061,752 {F)Administrative Costs 260,600 250,931 9,669 257,700 230,935 358,750 4,608,520 |3,928,577 |679,943 |4,828,670 |2,064,875 5,420,502 FERC 535 -Operation Supervision &Engineering (A)HEA O&M Contract 275,484 247,827 27,654 291,804 145,527 315,794 275,484 247,827 27,654 291,804 145,527 315,794 FERC 537 -Hydraulic Expenses (A)HEA O&M Contract 413,144 82.269 30,842 113,512 49,470 117,168 413,111 82,269 30,842 413,512 49.470 117,168 FERC 538 -Electric Expenses {A)HEA O&M Contract 222,043 283,620 (61,577)324,401 123,364 282,401 222,043 283,620 (61,577)324.401 123,364 282.401 FERC 539 -Misc.Hy Power G ion Exp (A)HEA O&M Contact 473,896 228,761 245,135 511,124 175,045 526,449 (C)HEA Circuits and Radio -To Bernice Lake 90,000 90,000 0 90,000 45,000 30,000 (C)CEA Circuits -Bernice Lake to Anchorage 30,000 28,746 1,254 30,000 14,373 30,000 593.896 347.507 246.389 631,124 234.418 586.449 FERC 540 -Rents (C)Bradley Lake FERC land use fees 62,623 132,158 (69,535)175,000 0 180.000 62.623 132,158 (69,535)175.000 0 180,000 FERC 541 -Maintenance Supervision &Engineering (A)HEA O&M Contract 167,770 194.407 (26,637)171,510 116,349 214,230 167,770 194.407 (26.637)171,510 116,349 214,230 FERC 542 -Maintenance of Structures (A)HEA O&M Contract 162,355 151,453 10,902 182,773 61,032 174,973 (C)Engineering/design/scope for Equipment Barn 25,000 0 25,000 0 0 187,355 151,453 35,902 182,773 61,032 174,973 FERC 543 -Maintenance of Reservoirs,Dams &Waterways (A)HEA O&M Contract 13,519 1,604 11,915 13,519 276 78,719 (C)Power Tunnel Maintenance 21,630 0 21,630 43,260 19,478 65,000 (C)Diversion Tunnet Maintenance 61,800 19,770 42,030 0 0 0 (C)Nuka Repair 21,630 118,248 (96,618)21,630 463 21,630 118.579 139.622 (21,043)78,409 20,217 165,349 Net change 224,371 326,726 (226,715) 37,400 129,000 490,782 101,050 591,832 23,990 3,656 (42,000) (44,675) 5,000 42,720 (7,800) 86,940 % Change 8% 203% -25% T% 48% 11% 39% 12% 8% 3% "13% -7% 3% 25% 4% 111% includes intern help plus bridge analysis Page5of8 FY2013 FY2013 FY2014 FY2014 FY2015 BUDGET ACTUAL Variance BUDGET YTD BUDGET FERC 544 -Maintenance of Electric Plant (A)HEA O&M Contract 425,378 330,064 95,314 426 894 170,064 496.494 425,378 330,064 95.314 426.894 170,064 496.494 FERC 545 -Maintenance of Misc.Hydraulic Plant (A)HEA O&M Contract 136,444 186,106 (49,662)168,081 88,650 201,761 (C)Automate Fish Water Design 30,900 10,015 20,885 9 0 0 167,344 196,121 (28,777)168.081 88.650 201,761 FERC 556 -System Control &Load Dispatching (A)HEA 08M Contract 58,493 18,959 39,534 89,699 2,778 109,699 (A)HEA-Power House PCs &Develop Electronic Ops 30,500 2,692 27,808 0 0 0 (C)SCS Snow Measurement 10,500 10,000 500 10,130 10,000 11,000 (C)UAF Seismic monitoring and reporting 56.500 54,391 2,109 56,500 28,308 60,000 {C)USGS Streamgauging 244,304 269,568 (25,264)282,725 133,678 295,000 (C)State of Alaska Permits 100 100 i]200 0 100 400,397 355,710 44,687 439,254 174,764 475,799 FERC 562 -Station Expenses (B)CEA SVC/Substation Maintenance Contract 133,500 316,905 (183,405)161,274 37,472 488,000 133,500 316,905 (183,405)161,274 37,472 488.000 FERC 57 -Maintenance of Overhead Lines (A)HEA Overhead Line Maintenance 352,239 26,562 325,677 353,697 2.587 353,697 (C)Bradley Junction switch removal 210,000 9 210,000 210,000 0 0 562,239 26.562 535,677 563.697 2,587 353.697 {H)Contingencies 0 250 (250)0 0 0 FERC 920 -Administrative Expense (F)AEA Admin Fee 200,000 200,000 0 200,000 200,000 200,000 AEA Administrative Costs 200,000 200,000 0 200,000 200,000 200,000 PMC Costs (F)Bradley Lake Audit fees 15,400 14,600 800 15,200 14,750 116.250 (F)Bradley Lake PMC Legal 25,000 21,083 3,917 25,000 637 25,000 (F)Bradiey Lake Arbitrage Report 5,200 3,330 4,870 §,200 3,630 §,200 (F)Bradley Lake Trustee fees 15,000 11,918 3,082 12,300 11,918 12,300 PMC Costs 60,600 50,931 9,669 57,700 30,935 158,750 TOTAL FERC 920 260,600 250,931 9.669 257,700 750,535 |358,750 FERC 924 -Property Insurance {D)Insurance Premiums 537,600 483,984 53,616 509,100 493,318 510,000 {D)Homer Electric Insurance 61,890 51,910 9,980 63,137 26,334 64.637 (D)Risk Assessment 15,000 0 45,000 0 0 35,000 614,490 §35.894 78,596 572.237 519,652 609.637 FERC928-Regulatory C Exp (E)FERC administrative fees 232,714 257,840 (25,126)200,000 0 250,000 {&)Contractual Engineer -FERC license issues 71,000 79,437 {8,437)71,000 90,374 150,000 303,714 337,277 (33,563)271,000 90,374 400,000 TOTAL BRADLEY LAKE BUDGET 4,608,520 3,928,577 679,943 4,828,670 2,064,875 §,420,502 0 0 0 0 0 0 Net change 69,600 33,680 36,545 326,726 (210,000) 101,050 37,400 129,000 591,832 % Change includes $30,000 LT repair study &$25,000 update PSSE model 16% includes $30,000 for loader tires 20% includes $20,000 update plant documents 8% includes $301,000 SVC project 203% $30,000 Transmission imedance -37% Swalling Financial +mgmt operator audit $100,000) 39% (Probable max loss) 1% includes fishwater re-reg dam $50,000 48% 12% "¢8 BRADLEY LAKE MONTHLY UTILITY CONTRIBUTION SCHEDULE C POWER PURCHASER CHUGACH ELECTRIC MUNICIPALITY OF ANCHORAGE AEG&T-HEA AEG&T-MEA GOLDEN VALLEY ELECTRIC CITY OF SEWARD Rounding POWER PURCHASER CHUGACH ELECTRIC MUNICIPALITY OF ANCHORAGE AEG&T-HEA AEG&T-MEA GOLDEN VALLEY ELECTRIC CITY OF SEWARD V BUDGET Proposed FY2014 to PERCENT FY2013 FY2014 FY2015 Amendment FY2015 FY2015 SHARE TOTAL BUDGET BUDGET Change BUDGETAmended Change 30.4%5,231,100 5,373,084 5,342,592 158,208 5,500,800 127,716 25.9%4,456,764 4,577,724 4,551,744 134,796 4,686,540 108,816 12.0%2,064,912 2,120,952 2,108,916 62,448 2,171,364 50,412 13.8%2,374,644 2,439,096 2,425,260 71,808 2,497,068 57,972 16.9%2,908,080 2,987,016 2,970,060 87,948 3,058,008 70,992 1.0%172,080 176,748 175,740 5,208 180,948 4,200 (13)8 2 (2)(8) 700.0%17,207,567 17,674,628 17,574,314 |520,414 18,094,728]420,100 PERCENT FY2013 FY2014 FY2015 FY2015 FY2015 SHARE MONTHLY MONTHLY MONTHLY MONTHLY Change 30.4%435,925 447,757 445,216 13,184 458,400 10,643 25.9%371,397 381,477 379,312 11,233 390,545 9,068 12.0%172,076 176,746 175,743 5,204 180,947 4,201 13.8%197,887 203,258 202,105 5,984 208,089 4,831 16.9%242,340 248,918 247,505 7,329 254,834 5,916 1.0%14,340 14,729 14,645 434 15,079 350 100.0%1,433,965 1,472,685 |7,464,526 |43,368 |7,507,894 |35,009 Page 7 of 8 BRADLEY LAKE R&C FUND DISBURSEMENTS AND REPAYMENTS SCHEDULE D changes made by Amend 1 highlighted -see 11/17/14 BPMC meeting minutes changes made by Amend 3 highlighted 1,362,235.90 EEE 1,365,856.18 EE Actual Actual Actual PROJECTED Actual PROJECTED Actual PROJECTED TO REPAY TO REPAY @ 6/30/14 TO REPAY @ 6/30/15 TO REPAY Description Disburse at 06/30/12 Disburse at 06/30/13 Disburse at 06/30/14 Disburse at 06/30/15 R&C FUND PROJECTS Governor 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 9.00 251,092.69 0.00 251,092.69 0.00 251,092.69 0.00 251,092.69 Replace Runners 0.00 1,946,732.79 0.00 1,946,732.79 0.00 1,946,732.79 0.00 1,946,732.79 Replace cable from dam to power house 0.00 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 $91,444.40 27,760.70 619,205.10 0.00 619,205.10 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 86,905.27 Culvert Repairs 0.00 675,966.79 0.00 675,966.79 0.00 675,966.79 0.00 675,966.79 Trans Towers Frost Jacking Repairs 0.00 887,596.62 0.00 887,596.62 0.00 887,596.62 0.00 887,596.62 Replace Plant and SCADA Controls 1,008,298.67 1,008,298.67 336,384.38 1,344,683.05 0.00 14,344,683.05 0.00 4,344,683.05 Vibration Monitoring System 0.00 490.00 0.00 490.00 0.00 490.00 0.00 490.00 Battle Creek Feasibility-Note A 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Fire Alarm System Replacement 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Replace Electro-Mechanical Relays 0.00 0.00 499,893.38 499,893.38 471,070.64 970,963.99 0.00 970,963.99 Battle Creek Diversion 0.00 0.00 479,657.87 479,657.87 777,303.68 1,256,961.55 25,054.46 4,282,016.01 Fishwater Screen Debris Removal 0.00 0.00 0.00 0.00 0.00 0.00 21,929.45 21,929.45 Turbine Nozzle Repair 0.00 0.00 0.00 0.00 0.00 0.00 96,423.49 96,423.49 L 1,455,830.05 10,550,403.68 4,401 ,948.53 11,952,352.21 1,834 499.92 13,786,852.13 |771,146.20 14,557,998.33 Current Year R&C Repayment (883,075.00)(1,142,156.37)(1,362,235.90)|(1,365,856.18) Adjust bal to $5 mill 0.00 0.00 Less Interest in Fund Applied to Repayment 309,829.60)0.00 0.00 Net Transfer from Revenue Fund (1,192,904.60)}(1,142,156.37)(1,362,235.90)(1,365,856.18)FY12 Interest Cumulative Prior Years R&C Repayments (7,890,873.12)(8,841,653.14))(9,983,809.51)(11,346,045.41) Due back to Utilites 773,897.74 R&C Cumulative interest (Retained)Applied As Part of Repayr (531,773.16)7,648,748.54)(8,841,653.14)|(9,983,809.51)]id 1,346,045.41)}NET OUE TO R&C FUND 1,708,750.54 1,968,542.70 2,440,806.72 1,846,096.74 R&C FUND CASH FLOW PROJECTION Beginning Investment Balance 3,872,242.58 4,671,504.45 3.031,457.30 2,559,193.28 Disbursements-current year (849,472.80)(1,401,948.53)(1,834,499.92)(771,146.20) Disbursements-prior year accrued (82,071.19)(606,357.25)0.00 0.00 Utilities'R&C Repayment 537,901.26 1,142,156.37 1,362,235.90 1,365,856.18 (Current year interest earnings 309,829.60 0.00 0.00 0.00 Current year Participants Contributions to R&C 883,075.00 0.00 0.00 0.00 Due back to Utilites (773,897.74) Ending Investment Balance 4.671 ,504.45 |3.031,457.30 2,559,193.28 3,153,903.26 | Accrued R&C Payable at year end-Due to Utilities (773,897.74)_ Accrued R&C Payable at year end (606,357.25) PROJECTED NET DUE +ENDING INVESTMENT BALANCE 5,000,000.00 5,000,000.00 5,000,000.00 §,000,000.00A!ES REPAYMENT AMOUNT $238,606 X 25%59,651.54 [4th yr $954,181.80 X 25%238,545.45 {3rd yr 238,545.45 [4th yr '$756,665.11 X 25%189,166.28 [2nd yr 189,166.28 [3rd yr 189,166.28 '$1,455,830.05 X 25%363,957.51 [st yr 363,957.51 [2nd yr 363,957.51 363,957.51 [4th yr$1,401 948.53 x 25% Le 350,487.13 [1st yr 350,487.13 350,487.13 [3rd yr$1,834,499.92.x 25%oe "an :458,624.98 458,624.98 [2nd yr$771,146.20 x 25%192,786.55 1st yr 851,320.77 1,142,156.37 Pon 9 -£8 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT 2016 Budget Amendment Summary Proposed Amendment 1 1)Increase R&C repayments Reason:FY15 actual disbursements column was as of 12/31/14 ($690,301.29)in original budget,it was updated to reflect FY15 actual disbursements through 6/30/15 ($771,146.20). The FY15 disbursements affects the FY16 repayment amounts (75%of FY15 disbursements will be repaid in FY16) 2)Increase debt service payments Reason:Debt service interest and principle must be transferred from the revenue fund one month prior to payment due date (June 1). Original budget was based off actual payment due date (July 1). 3)Increase O&M Operating expense Reason:The Bradley Junction Switch Removal Project has been postponed to FY16. The $210,000 from the FY15 O&M budget was added to the FY16 budget. 4)Adjust the transfer to(from)the Operating Reserve account Reason:Due to the decrease from the FY15 required operating reserve balance. The required balance in the Operating Reserve account is 20%of the current year O&M budget. 5)Increase Utility Contributions Reason:To reflect change 1,2,3 and 4 above Page 1 of 14 OVERVIEW OF BUDGET CHANGES BETWEEN FY15 AND AMENDED FY16 FY15 Original Budgetd Utility Contributions Schedule A REVENUES Decrease in projected Interest Earnings EXPENSES Decrease in O&M Operations Increase in R&C Fund Repayments Decrease in Non R&C Capital Increase in Debt Service Increase in projected Arbitrage Transfer Decrease in Operating Reserve Transfer Increase in surplus Net change in utility contributions FY16 Utility Contributions 17,574,314 89,550 89,550 (48,736) 1,991,546 (125,000) 621,700 3,940 (170,113) (87,778) 2,185,559 2,275,109 19,849,423 7/21120152:59 PMH:\Accounting\AEA FY16 FS Shared Files\Bradley Lake\Budget\2016 BradleyBudget-Amend 1-PROPOSED.xisxOverview Page 2 of 14 BRADLEY LAKE HYDROELECTRIC PROJECT Schedule A FY2013 FY2014 FY2015 FY2016 Proposed FY2016 INC(DEC)FRM ACTUALS ACTUALS Budget Budget Amendment Budget PYORIGINALREVENUES,EXPENSES &CHANGES IN SURPLUS Approved Adopted 3-19-15 Change Amended BUDGET REVENUES UTILITY CONTRIBUTIONS 16,176,157 16,260,993 17,574,314 19,267,415 582,008 19,849,423 2,275,109 INTEREST INCOME 1,936,516 1,879,404 1,859,550 1,770,000 0 1,770,000 (89,550) STATE OF ALASKA BATTLE CREEK FEASIBILITY GRANT 477,363 0 0 0 0 0 0 18,590,036 18,140,397 19,433,864 21,037,415 582,008 21,619,423 2,185,559 EXPENSES OPERATIONS 3,928,577 4,142,938 5,630,502 5,371,766 210,000 5,581,766 (48,736) RENEWALS/REPLACEMENTS (R&C FUND REPAYMENTS)1,142,155 1,362,236 1,250,318 3,181,231 60,633 3,241,864 1,991,546 NON R&C FUND CAPITAL PURCHASES-SEE A1 554,627 193,549 140,000 15,000 0 15,000 (125,000) GRANT FUNDED PORTION OF BATTLE CREEK FEASIBILITY 477,363 0 0 0 0 0 0 TRANSFER TO (FROM)OPERATING RESERVE 82,552 44,030 160,366 (51,747)42,000 (9,747)(170,113) DEBT SERVICE (net of Capital Reserve Reductions)12,107,950 12,104,950 11,872,900 12,225,225 269,375 12,494,600 621,700 ARBITRAGE TRANSFER 296,812 292,694 292,000 295,940 0 295,940 3,940 18,590,036 18,140,397 19,346,086 |21,037,415 |582,008 |21,619,423 |2,273,337 CURRENT YEAR SURPLUS (DEFICIT)(0)0 87,778 0 0 0 BEGINNING SURPLUS (DEFICIT)(0)0 0 0 0 0 ENDING SURPLUS (DEFICIT)0 0 87,778 0 0 0 4 :d BALANCE SHEET ASSETS REVENUE FUND 156,350 678,142 0 0 OPERATING FUND 1,310,642 1,599,575 0 0 RECEIVABLE FROM R&C 769,228 279,247 0 0 OTHER RECEIVABLES 0 25,865 0 0 PREPAID EXPENSES 5,640 6,205 0 0 2,241,860 2,589,034 0 0 LIABILITIES &SURPLUS LIABILITIES 1,210,449 1,175,401 0 0 PAYABLE TO UTILITIES 1,031,411 1,134,386 0 0 R&C REPAYMENT 0 279,247 0 0 2,241,860 2,589,034 0 0 |a OTHER INFORMATION OPERATING RESERVE *921,704 965,734 1,126,100 1,074,353 42,000 1,116,353 MONTHLY CONTRIBUTIONS 1,433,964 1,404,594 1,464,526 1,605,618 48,501 1,654,119 *Required to be 20%of budgeted operating expense 7/21120152:59 PMH:\Accounting\AEA FY16 FS Shared Files\Bradley Lake\Budget\2016 BradleyBudget-Amend 1-PROPOSED.xIsxSchedule A-Budget Summary Page 3 of 14 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Schedule A-1 2016 Adopted Budget FY2013 FY2013 FY14 FY14 FY15 FY15 FY16 CAPITAL PURCHASES NOT FUNDED BY R&C FUND Approved Approved Approved |YTD 12/31/14 |ADOPTED BUDGET |ACTUALS]BUDGET {ACTUALS |BUDGET ACTUALS BUDGET |Comments Work Management System &Recreational Equip -1 4,999 -a :-- Emergency/Standby Facilities Diesel Generator 150,000 53,060 -:::- DCS &Vibration System (parts &labor)108,875 186,937 ::::: Replace Office Furniture 10,000 -10,000 7,327 --- Test Equipment -1,314 ----- Telephone/Network Upgrade 20,000 252 20,000 13,457 --- Accusonic Flow Meter Monitoring Unit Replacement 16,000 --16,422 -:- Replace Fish Water Valve Actuators 20,000 14,636 20,000 -20,000 --|Fishwater valve replacement postponed Airport &Barge Dock Upgrades -2,457 --:-- Floating Dock Repairs -2,096 ----- Utility Vehicles 18,750 16,850 7,500 5,500 :-- Shop Equipment -2,949 ----- Forklift with outside capacity 35,000 31,515 --:-: Insulate domestic water well head and piping 15,000 2,461 ----- Replace JEM meters with ION meters 92,000 68,184 -23,154 --- Road Grader snow removal attachments 35,000 34,177 ----- Bradley Bridge Crane Controls -132,740 ---:- Nuka Diversion Hut ..75,000 5,636 ...Carry over remaining $69,364 from 2015,NUKA tractortransportedtoshopforrepair Weather Stations --15,000 ----|Carry over $15,000 from 2015,working with Emerson 803010000 -Contractual --::-;15,000 on interface cards to DCS 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 -- 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 -_520,625 554,627 475,500 193,549 140,000 206,315 15,000 7121/20152:59 PMH:\MAccounting\AEA FY 16 FS Shared Files\Bradley Lake\Budget\2016 BradleyBudget-Amend 1-PROPOSED.xIsxSch A-1 Page 4 of 14 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS &MAINTENANCE SCHEDULE B Summary Budget by Participant 2016 BUDGET HEA 2,954,079 HEA 3,075,041 HEA 3,262,652 HEA 3,365,387 CEA 178,500 CEA 191,274 CEA 553,000 CEA 408,098 AEA 1,475,941 AEA 1,562,355 AEA 1,814,850 AEA 1,808,280 FY13 FY14 FY15 FY16 FY13 FY14 FY 1S FY16 Increase Approved (Over)Under Approved (Over)Under Approved Total YTD @ |(Over)Under Proposed (Decrease) Budget Actual Budget Budget Actual Budget Budget 12/31/14 |Budget to date Budget from PY Summary by cost type 4,608,520 3,928,577 679,943 $14,971 535,122 (20,151)353,697 -353,697 -(353,697) Labor &Benefits ---1,545,880 1,353,077 192,803 1,986,848 893,675 1,093,173 2,143,223 156,375 Travel :--11,000 13,838 (2,838)35,410 11,749 23,661 98,600 63,190 Training -.:"::38,731 11,037 27,694 38,731 - Contractual :::797,343 597,329 200,014 840,480 313,155 §27,325 1,180,859 340,379 Supplies &Materials :-:248,919 115,617 133,302 435,919 81,904 354,015 275,760 (160,159) Other Costs :::505,330 298,561 206,769 450,000 29,249 420,751 451,746 1,746 Equipment &Machinery :-:8,500 3,192 §,308 30,130 17,557 12,573 33,130 3,000 Maintenance Projects ---95,790 22,013 73,777 90,900 2,400 88,500 37,900 (53,000) Administrative Costs -::1,100,937 1,204,190 (103,253)1,368,387 454,659 913,728 1,321,817 (46,570) 4,608,520 3,928,577 679,943 4,828,670 4,142,940 685,730 5,630,502 1,815,384 3,815,118 5,581,766 (48,736) FERC 535 -Operation Supervision &Engineering Operations Sup/Eng Bradley Lake Operating 275,481 247,827 27,654 Labor &Benefits ---268,052 266,237 1,815 291,632 161,210 130,422 304,235 12,603 Travel ---8,200 11,861 (3,661)8,610 9,870 (1,260)9,500 890 Training -----:7,904 3,516 4,388 7,904 : Contractual ---9,349 10,339 (990)1,445 -1,445 1,445 : Supplies &Materials --:6,203 390 §,813 6,203 118 6,085 6,203 - Bradley Lake Operating Total 275,481 247 827 27,654 291,804 288,827 2,977 315,794 174,713 141,081 329,287 13,493 FERC 535 -Operation Supervision &Engineering Total 275,481 247,827 27,654 291,804 288,827 2,977 315,794 174,713 141,081 329,287 JHEA 13,493 {FERC 537 -Hydraulic Expenses Hydraulic Expenses Bradley Lake Operating 413,111 82,269 30,842 Labor &Benefits ---91,400 74,298 17,102 95,056 41,080 53,976 95,273 217 Contractual .--19,504 11,475 8,029 19,504 8,000 11,504 17,180 (2,324)Supplies &Materials ---2,608 918 1,690 2,608 :2,608 2,608 : Bradley Lake Operating Total 113,111 82,269 30,842 113,512 86,691 26,821 117,168 49,080 68,088 115,061 (2,107) |FERC 537 -Hydraulic Expenses Total 113,111 82,269 30,842 113,512 86,691 26,821 117,168 49,080 68,088 115,061 THEA (2,107) 7121120152:59 PMH:\Accounting\AEA FY16 FS Shared Files\Bradley Lake\Budget\2016 BradleyBudget-Amend 1-PROPOSED.xIsxSch B-HEA CEA AEA Page 5 of 14 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 Increase Approved (Over)Under Approved (Over)Under Approved |Total YTD @{(Over)Under Proposed (Decrease) Budget Actual Budget Budget Actual Budget Budget 12/31/14 |Budget to date Budget from PY FERC 538 -Electric ExpensesElectricExpenses Bradley Lake Operating 222,043 283,620 (61,577) Labor &Benefits ---197,000 215,557 (18,557)224,000 114,491 109,509 257,107 33,107 Training ------30,827 6,772 24,055 30,827 - Contractual ---121,169 57,136 64,033 21,342 1,400 19,942 3,342 (18,000) Supplies &Materials ---6,232 498 5,734 6,232 567 5,665 12,232 6,000 Bradley Lake Operating Total 222,043 283,620 (61,577)324,401 273,191 51,210 282,401 123,229 159.172 303.508 21,107 FERC 538 -Electric Expenses Total 222,043 283,620 (61,577)324,401 273,191 51,210 282,401 123,229 159,172 303,508 JHEA 21,107 FERC 539 -Misc.Hydraulic Power Generation Expenses Misc Hydro Power Exp Bradley Lake Operating 473,896 228,761 245,135 Labor &Benefits -:-192,168 75,569 116,599 192,000 56,665 135,335 189,473 (2,527) Training ---:---750 (750)-- Contractual ---224,078 173,600 50,478 239,571 74,120 165,451 315,249 75,678 Supplies &Materials --:94,878 53,658 41,220 94,878 12,375 82,503 22,000 (72,878) Bradley Lake Operating Total 473,896 228,761 245,135 511,124 302,826 208,298 526,449 143,909 382,540 526,722 HEA 273 BRADLEY CIRCUITS/RADIO TO BERNICE LK Other Costs 90,000 90,000 -90,000 90,000 :30,000 14,370 15,630 30,000 : BRADLEY CIRCUITS/RADIO TO BERNICE LK Total 90,000 90,000 -90,000 90,000 -30,000 14,370 15,630 30,000 [HEA : BRADLEY CIRCUITS BERNICE LK TO ANCH Other Costs 30,000 28,746 1,254 30,000 28,746 1,254 30,000 14,373 15,627 28,746 (1,254) BRADLEY CIRCUITS BERNICE LK TO ANCH Total 30.000 28,746 1,254 30,000 28,746 1,254 30,000 14,373 15,627 28,746 [CEA (1,254) FERC 539 -Misc.Hydraulic Power Generation Expenses Total 593,896 347,507 246,389 631,124 421,572 209,552 586,449 172,652 413,797 585,468 (981) FERC 540 -Rents FERC Land Use Fee Bradley Lake Operating Other Costs 62,623 132,158 (69,535)175,000 179,565 (4,565)180,000 -180,000 183,000 3,000 Bradley Lake Operating Total 62,623 132,158 (69,535)175,000 179,565 (4,565)180,000 -180,000 183,000 3,000 FERC 540 -Rents Total 62,623 132,158 (69,535)175,000 179,565 (4,565)180,000 :180,000 183,000 JAEA 3,000 7/21/20152:59 PMH:\Accounting\AEA FY16 FS Shared Files\Bradley Lake\Budget\2016 BradleyBudget-Amend 1-PROPOSED.xIsxSch B-HEA CEA AEA Page6 of 14 FY13 FY14 FY15 FY16 FY13 FY14 FY 1S FY16 Increase Approved (Over)Under Approved (Over)Under Approved |Total YTD @ |(Over)Under Proposed (Decrease) Budget Actual Budget Budget Actual Budget Budget 12/31/14 |Budget to date |Budget |from PY FERC 541 -Maintenance Supervision &Engineering Maint Supervision/Eng Bradley Lake Operating 167,770 194,407 (26,637) Labor &Benefits ---171,510 206,626 (35,116)214,230 111,523 102,707 222,118 7,888 Bradley Lake Operating Total 167,770 194,407 (26,637)171,510 206,626 (35,116)214,230 111,523 102,707 222,118 7,888 FERC 541 -Maintenance Supervision &Engineering Total 167,770 194,407 (26,637)171,510 206,626 (35,116)214,230 111,523 102,707 222,118 JHEA 7,888 FERC 542 -Maintenance of Structures Maintenance of Structures Bradley Lake Operating 187,355 151,453 35,902 Labor &Benefits ---110,000 74,461 35,539 96,200 41,002 55,198 95,273 (927) Supplies &Materials :--64,273 23,138 41,135 64,273 4,351 59,922 61,273 (3,000) Equipment &Machinery "::8,500 3,192 5,308 8,500 9,272 (772)11,500 3,000 Maintenance Projects ------6,000 -6,000 4,000 (2,000) Bradley Lake Operating Total 187,355 181,453 35,902 182,773 100,792 81,981 174,973 54,626 120,347 172,046 (2,927) FERC 542 -Maintenance of Structures Total 187,355 151,453 35,902 182,773 100,792 81,981 174,973 54,626 120,347 172,046 [HEA (2,927) {FERC 543 -Maintenance of Reservoirs,Dams &Waterways Maint Res,Dams,WWays Bradley Lake Operating 13,519 1,604 11,915 Labor &Benefits ---10,750 276 10,474 49,950 15,798 34,152 51,276 1,326 Contractual ---2,769 -2,769 28,769 -28,769 5,200 (23,569) Bradley Lake Operating Total 13,519 1,604 11,915 13,519 276 13,243 78,719 15,798 62,921 56,476 (22,243) BRADLEY NUKA REPAIR Supplies &Materials :------787 (787)-- Equipment &Machinery 21,630 118,248 (96,618)21,630 463 21,167 21,630 8,284 13,346 21,630 - BRADLEY NUKA REPAIR Total 21,630 118,248 (96,618)21,630 463 21,167 21,630 9.071 12,559 21,630 - BRADLEY POWER TUNNEL MAINT (Dam) Contractual 21,630 -21,630 43,260 21,550 21,710 §6,000 39,331 16,669 20,000 (36,000) BRADLEY POWER TUNNEL MAINT (Dam)Total 21,630 -21,630 43,260 21,550 21,710 56,000 39,331 16,669 20,000 (36,000) 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 - 7/21120152:59 PMH:\Accounting\AEA FY16 FS Shared Files\Bradley Lake\Budget\2016 BradleyBudget-Amend 1-PROPOSED.xIsxSch B-HEA CEA AEA Page 7 of 14 FY13 FY14 FY15 FY16 FY13 FY14 FY 15 FY16 Increase Approved (Over)Under Approved (Over)Under Approved |Total YTD @ |(Over)Under Proposed (Decrease) Budget Actual Budget Budget Actual Budget Budget 12/31/14 |Budget to date Budget from PY BRADLEY POWER DIVERSION TUNNEL Maintenance Projects 61,800 19,770 42,030 -------- BRADLEY POWER DIVERSION TUNNEL Total 61,800 19,770 42,030 -----:-> FERC 543 -Maintenance of Reservoirs,Dams &Waterways Total 118,579 139,622 (21,043)78,409 22,289 56,120 165,349 64,200 101,149 107,106 [HEA (58,243) FERC 544 -Maintenance of Electric Plant Maintenance of Elec Plant Bradley Lake Operating 425,378 330,064 95,314 Labor &Benefits ---365,000 317,817 47,183 379,600 168,107 211,493 381,093 1,493 Travel ---2,800 1,976 824 2,800 158 2,642 3,500 700 Contractual ---31,849 7,905 23,944 61,849 2,957 58,892 91,443 29,594 Supplies &Materials ---27,245 14,961 12,284 27,245 14,729 12,516 27,245 - Maintenance Projects -:-:--25,000 -25,000 -(25,000) Bradley Lake Operating Total 425,378 330,064 95,314 426,894 342,659 84,235 496,494 185,952 310,542 503,281 6,787 {FERC 544 -Maintenance of Electric Plant Total 425,378 330,064 95,314 426,894 342,659 84,235 496,494 185,952 310,542 503,281 [HEA 6,787 FERC 545 -Maintenance of Misc.Hydraulic Plant Maint of Misc Hydr Plant Bradley Lake Operating 136,444 186,106 (49,662) Labor &Benefits ---92,000 113,365 (21,365)95,680 41,465 54,215 95,273 (407) Contractual ---3,900 -3,900 3,900 170 3,730 3,900 - Supplies &Materials -:-41,281 21,231 20,050 71,281 32,129 39,152 43,000 (28,281) Bradley Lake Operating Total 136,444 186,106 (49,662)137,181 134,596 2,585 170,861 73,764 97,097 142,173 (28,688) BRADLEY FISH WATER DSGN/MIDDLE FORK SHACK IMPR Maintenance Projects 30,900 10,015 20,885 30,900 -30,900 30,900 -30,900 24,900 (6,000) BRADLEY FISH WATER DSGN/MIDDLE FORK SHACK IMPR Total 30,900 40,015 20,885 30,900 -30,900 30,900 -30,900 24,900 (6,000) FERC S45 -Maintenance of Misc.Hydraulic Plant Total 167,344 196,121 (28,777)168,081 134,596 33,485 201,761 73,764 127,997 167,073 [HEA (34,688) FERC 556 -System Control &Load Dispatching System Cntl &Load Disp Bradley Lake Operating 58,493 18,959 39,534 Labor &Benefits ---48,000 8,871 39,129 48,000 5,591 42,409 49,000 1,000 Contractual -:-35,500 16,131 19,369 5,000 -5,000 8,500 3,500 Supplies &Materials ---6,199 825 §,374 6,199 2,187 4,012 6,199 - Bradley Lake Operating Total 58,493 18,959 39,534 89,699 25,827 63,872 59,199 7,778 51,421 63,699 JHEA 4,500 7/21120152:59 PMH:\Accounting\AEA FY16 FS Shared Files\Bradiey Lake\Budget\2016 BradleyBudget-Amend 1-PROPOSED.xlsxSch B-HEA CEA AEA Page 8 of 14 FY13 FY14 FY15 FY16 FY13 FY14 FY 15 FY16 Increase Approved (Over)Under Approved (Over)Under Approved |Total YTD @ }(Over)Under Proposed (Decrease) Budget Actual Budget Budget Actual Budget Budget 12/31/14 |Budget to date Budget from PY BRADLEY POWERHOUSE PC'S Contractual 30,500 2,692 27,808 ---30,500 3,201 27,299 50,000 19,500 BRADLEY POWERHOUSE PC'S Total 30,500 2,692 27,808 .--30,500 3,201 27,299 50,000 JHEA 19,500 BRAOLEY DISPATCH REGULATIONS Maintenance Projects ------20,000 -20,000 -(20,000) BRADLEY DISPATCH REGULATIONS Total --:--:20,000 :20,000 -HEA (20,000) Snow Measurement Bradley Lake Operating Contractual 10,500 10,000 500 10,130 10,000 130 11,000 :11,000 10,000 [AEA (1,000) Bradley Lake Operating Total 10,500 10,000 500 10,130 10,000 130 11,000 -11,000 10,000 (1,000) Seismic Service Bradley Lake Operating Contractual 56,500 54,391 2,109 56,500 51,678 4,822 60,000 33,527 26,473 62,000 [AEA 2,000 Bradley Lake Operating Total 56,500 54,391 2,109 56,500 51,678 4,822 60,000 33,527 26,473 62,000 2,000 Streamguaging Serv Bradley Lake Operating Contractual 244,304 269,568 (25,264)282,725 259,065 23,660 295,000 148,205 146,796 296,000 JAEA 1,000 Bradley Lake Operating Total 244,304 269,568 (25,264)282,725 259,065 23,660 295,000 148,205 146,796 296,000 1,000 Permits Bradley Lake Operating Contractual 100 100 -200 250 (50)100 100 -100 [AEA - Bradley Lake Operating Total 100 100 -200 250 (50)100 100 -100 - FERC 556 -System Control &Load Dispatching Total 400,397 355,710 44,687 439,254 346,820 92,434 475,799 192,810 282,989 481,799 6,000 7/21120152:59 PMH:\Accounting\AEA FY16 FS Shared Files\Bradley Lake\Budget\2016 BradleyBudget-Amend 1-PROPOSED.xIsxSch B-HEA CEA AEA Page 9 of 14 FY13 FY14 FYL5 FY16 FY13 FY14 FY 15 FY16 Increase Approved (Over)Under Approved (Over)Under Approved |Total YTD @ |(Over)Under Proposed (Decrease) Budget Actual Budget Budget Actual Budget Budget 12/31/14 |Budget to date Budget from PY FERC 562 -Station Expenses Station Expenses CEA SVC/Substation Maintenance Contract 133,500 316,905 (183,405):161,274 344,042 (182,768) Labor &Benefits 300,500 136,742 163,758 251,852 (48,648) Travel 24,000 1,721 22,279 26,000 2,000 Contractual 6,500 2,145 4,355 6,500 : Supplies &Materials 157,000 14,662 142,338 95,000 (62,000) Other Costs -506 (506)-- Maintenance Projects -2,400 (2,400):: CEA SVC/Substation Maintenance Contract Total 133,500 316,905 (183.405)161.274 344,042 (182,768)488,000 158,176 329,824 -(488,000) FERC 562 -Station Expenses Total 133,500 316,905 (183,405)161,274 344,042 (182,768)488,000 158,176 329,824 379,352 [CEA (108,648) FERC 571 -Maintenance of Overhead Lines Maint of OH Lines Bradley Lake Operating 352,239 26,562 325,677 353,697 191,080 162,617 353,697 353,697 (353,697) Labor &Benefits 146,320 146,320 Travel 54,600 54,600 Contractual 90,000 90,000 Bradley Lake Operating Total 352,239 26,562 325,677 353,697 191,080 162,617 353.697 -353,697 290,920 (62,777) BRADLEY JUNCTION SWITCH REMOVAL Other Costs 210,000 -210,000 210,000 -210,000 210,000 -210,000 210,000 - BRADLEY JUNCTION SWITCH REMOVAL Total 210,000 -210,000 210,000 -210,000 210,000 -210,000 210,000 - MARKER BALL REPLACEMENT Labor &Benefits ----:-":-4,929 4,929 Travel ---------5,000 5,000 Contractual -----:.--200,000 200,000 MARKER BALL REPLACEMENT Total ---------209,929 209,929 FERC 571 -Maintenance of Overhead Lines Total 562,239 26,562 535,677 563,697 191,080 372,617 563,697 -563,697 710,849 [HEA 147,152 Contingencies .250 (250)-------. E 250 (250)---°:-:: FERC 920 -Administrative Expense AEA Bradley Fixed Admin Fees Bradley Lake Operating Administrative Costs 200,000 200,000 -200,000 200,000 -200,000 100,000 100,000 200,000 FAEA - Bradley Lake Operating Total 200,000 200,000 -200,000 200,000 -200,000 100,000 100,000 200,000 - 7/21120152:59 PMH:\Accounting\AEA FY16 FS Shared Files\Bradley Lake\Budget\2016 BradleyBudget-Amend 1-PROPOSED.xIsxSch B-HEA CEA AEA Page10 of 14 FY13 Fvi4 FY15 FY16 FY13 FY14 FY 1S FY16 Increase Approved (Over)Under Approved (Over)Under Approved |Total YTD @ |(Over)Under Proposed (Decrease) Budget Actual Budget Budget Actual Budget Budget 12/31/14 |Budget to date Budget from PY Operating Committee Exp-Audit Bradley Lake Operating Administrative Costs 15,400 14,600 800 15,200 14,750 450 116,250 15,500 100,750 116,250 JAEA - Bradley Lake Operating Total 15,400 14,600 800 15,200 14,750 450 116,250 15,500 100,750 116,250 - Operating Committee Exp-Legal Bradley Lake Operating Administrative Costs 25,000 21,083 3,917 25,000 68,151 (43,151)25,000 9,019 15,981 25,000 [AEA : Bradley Lake Operating Total 25,000 21,083 3,917 25,000 68,151 (43,151),25,000 9,019 15,981 25,000 - Operat Committee Exp-Arbitrage Bradley Lake Operating Administrative Costs 5,200 3,330 1,870 §,200 3,630 1,570 5,200 1,815 3,385 3,630 [AEA (1,570) Bradley Lake Operating Total §,200 3,330 1,870 §,200 3,630 1,570 5,200 1,815 3,385 3,630 (1,570) Trust &Account Fees Bradley Lake Operating : Administrative Costs 15,000 11,918 3,082 12,300 11,918 382 12,300 5,959 6,341 12,300 [AEA - Bradley Lake Operating Total 15,000 11,918 3,082 12,300 11,918 382 12,300 5,959 6,341 12,300 - FERC 920 -Administrative Expense Total 260,600 250,931 9,669 257,700 298,449 (40,749)358,750 132,293 226,457 357,180 (1,570) FERC 924 &925 -Insurance Premiums Insurance Premiums Bradley Lake Operating Administrative Costs 537,600 483,984 53,616 509,100 467,453 41,647 510,000 256,330 253,670 510,000 JAEA - Administrative Costs 61,890 51,910 9,980 63,137 52,018 11,119 64,637 25,684 38,953 64,637 {HEA - Bradley Lake Operating Total 599,490 535,894 63,596 572,237 519,471 52,766 574,637 282,014 292,623 574,637 - Risk Management Bradley Lake Operating Administrative Costs 15,000 -15,000 ---35,000 15,000 20,000 -{CEA (35,000) Bradley Lake Operating Total 15,000 -15,000 ---35,000 15,000 20,000 -(35,000) FERC 924 &925 -Insurance Premiums Total 614,490 535,894 78,596 572,237 519,471 52,766 609,637 297,014 312,623 574,637 (35,000) 7/21/20152:59 PMH:\Accounting\AEA FY16 FS Shared Files\Bradley Lake\Budget\2016 BradleyBudget-Amend 1-PROPOSED.xlsxSch B-HEA CEA AEA Page 11 of 14 FY13 FY14 FY15 FY16 FY13 FY14 FY 15 FY16 Increase Approved (Over)Under Approved (Over)Under|Approved |Total YTD @ |(Over)Under Proposed (Decrease) Budget Actual Budget Budget Actual Budget Budget 12/31/14 |Budget to date Budget from PY FERC 928 -Regulatory Commission Expenses FERC Admin Fees Administrative Costs 232,714 257,840 (25,126)200,000 204,998 (4,998)250,000 -250,000 210,000 [AEA (40,000) Bradley Lake Operating Totat 232,714 257,840 (25,126)200,000 204,998 (4,998)250,000 :250,000 210,000 (40,000) FERC Related Prof Services FERC Part 12 Inspection Administrative Costs ---------55,000 JAEA 55,000 Contractual Engineer-FERC license issues Administrative Costs 71,000 79,437 (8,437)71,000 181,272 (110,272)150,000 25,352 124,648 125,000 JAEA (25,000) Bradley Lake Operating Total 71,000 79,437 (8,437)71,000 181,272 (110,272)150,000 25,352 124,648 180,000 30,000 FERC 928 -Regulatory Commission Expenses Total 303,714 337,277 (33,563)271,000 386,270 (115,270)400,000 25,352 374,648 390,000 (10,000)Total Bradley Lake Budget 4,608,520 3,928,577 679,943 4,828,670 4,142,940 685,730 5,630,502 1,815,384 3,815,118 5,581,766 (48,736) 7/21120152:59 PMH:\Accounting\AEA FY16 FS Shared Files\Bradley Lake\Budget\2016 BradleyBudget-Amend 1-PROPOSED.xlsxSch B-HEA CEA AEA Page 12 of 14 BRADLEY LAKE MONTHLY UTILITY CONTRIBUTION SCHEDULE C POWER PURCHASER CHUGACH ELECTRIC MUNICIPALITY OF ANCHORAGE AEG&T-HEA AEG&T-MEA GOLDEN VALLEY ELECTRIC CITY OF SEWARD Rounding POWER PURCHASER CHUGACH ELECTRIC MUNICIPALITY OF ANCHORAGE AEG&T-HEA AEG&T-MEA GOLDEN VALLEY ELECTRIC CITY OF SEWARD 7/21/20152:59 PMH:\Accounting\AEA FY16 FS Shared Files\Bradley Lake\Budget\2016 BradleyBudget-Amend 1-PROPOSED.xisxSchedule C Utility Contrib V BUDGET Proposed FY2015 to PERCENT FY2013 FY2014 FY2015 FY2016 -Amendment FY2016 FY2016 SHARE TOTAL BUDGET BUDGET Adopted Budget Change BUDGETAMENDED Change 30.4%5,231,100 5,373,084 5,342,592 5,857,296 176,940 6,034,236 691,644 25.9%4,456,764 4,577,724 4,551,744 4,990,260 150,744 5,141,004 589,260 12.0%2,064,912 2,120,952 2,108,916 2,312,088 69,840 2,381,928 273,012 13.8%2,374,644 2,439,096 2,425,260 2,658,900 80,316 2,739,216 313,956 16.9%2,908,080 2,987,016 2,970,060 3,256,200 98,352 3,354,552 384,492 1.0%172,080 176,748 175,740 192,672 5,820 198,492 22,752 (13)8 2 (1)(4)(5) 100.0%17,207,567 17,674,628 17,574,314 |19,267,415 |582,008 19,849,423 |2,275,116 PERCENT FY2013 FY2014 FY2015 FY2016 FY2016 FY2016 SHARE MONTHLY MONTHLY MONTHLY Monthly MONTHLY Change 30.4%435,925 447,757 445,216 488,108 14,745 502,853 57,637 25.9%371,397 381,477 379,312 415,855 12,562 428,417 49,105 12.0%172,076 176,746 175,743 192,674 5,820 198,494 22,751 13.8%197,887 203,258 202,105 221,575 6,693 228,268 26,163 16.9%242,340 248,918 247,505 271,350 8,196 279,546 32,041 1.0%14,340 14,729 14,645 16,056 485 16,541 1,896 100.0%1,433,965 1,472,885 |1,464,526 |1,605,618 |48,501 1,654,119 |189,593 Page13 of 14 BRADLEY LAKE R&C FUND DISBURSEMENTS AND REPAYMENTS SCHEDULE D 2016 Adopted BUDGET Amend 1 -PROPOSED Repay remaining balance of 2014 actual disbursement in 2016 Repay 2015 actual disbursement in 2016 -(Note:2015 expenses are only through Dec 2014) Repay 2016 projected disbursements 25%in 2016,32%in 2017 and remaining 43%in 2017 &2048 Actual Actual Actual Actual ACTUAL @ PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED TO REPAY TO REPAY er30/ts TO REPAY TO REPAY TO REPAY Description Disburse at 06/30/13 Disburse at 06/30/14 Disburse at 06/30/15 Disburse at 06/30/16 Disburse at 06/30/17 R&C FUND PROJECTS iGovemor 58,252.20 2,838,205.71 586,125.63 3,424,331.34 627,738.80 4,052.070.14 0.00 4,052,070.14 0.00 4,052,070.14 Replace RFLS 0.00 251,092.69 0.00 251,002.69 0.00 251,092.69 0.00 251,092.69 0.00 251,092.60 Replace Runners 0,00 1,946,732.70 0.00 1,946,732.70 0.00 1,946,732.79 0.00 1,946,732.79 0.00 1,946,732.79 Replace cable from dam to power house 0.00 2,321,922.94 0.00 2,321,922.94 0.00 2,321,922.94 0.00 2,321,922.94 0.00 2,321,922.04 Replace power system stabilizer 27,760.70 619,205.10 0.00 619,205.10 0.00 619,205.10 0.00 619,205.10 0.00 619,205.10 Replace two RTUs 0.00 86,005.27 0.00 86,905.27 0.00 86,905.27 0.00 86,905.27 0.00 86,905.27 Culvert Repairs 0.00 675,966.79 0.00 675,966.79 0.00 675,966.79 0.00 675,968.79 0.00 675,966.79 Trans Towers Frost Jacking Repairs 0.00 887 596.62 0.00 887,596.62 0.00 887,596.62 6.00 887,596.62 6.00 887,596.62 Replace Plant and SCADA Controls 336,384.38 1,344 683.05 0.00 1,344 ,683.05 0.00 14,344 ,683.05 0.00 1,344,683.05 0.00 1,344,683.05 {Vibration Monitoring System 0.00 490.00 0.00 490.00 0.00 490.00 0.00 490.00 0.00 490.00feattleCreekFeasibility0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Fire Alarm System Replacement 0.00 0.00 0.00 0.00 0.00 0.00 150,000.00 450,000.00 200,000.00 350.000.00 Battle Creek Diversion 479,657.87 479,657.87 471,070.61 950,728.48 25,054.46 975,782.94 0.00 975,782.94 0.00 975,782.94 iReplace Electro-Mechanical Relays 499,893.38 490,893.38 777,303.68 1,277,197.06 0.00 1,277,197.06 0.00 1,277 197.06 0.00 1,277,197.06 Fishwater Screen Debris Removal 9.00 0.00 0.00 0.00 21,929.45 21,929.45 703,070.55 725,000.00 0.00 725,000.00 Turbine Nozzle Repair 0.00 0.00 0.00 0.00 96,423.49 96,423.49 |1,130,000.00 1,226,423.49 0,00 1,226,423.49 svc Daves Creek |0.00 0.00 0.00 0.00 0,00 0.00 |3,600,000.00 3,600,000.00 |3,600,000.00 7,200,000.00 1,401,948.53 11,952 352.21 1,834,499.92 13,786,852.13 771,146.20 14.557,998.33 J 5,583.070.55 20,141,068.88 J 3.800,000.00 23.941,068.88 Current Year R&C Repayment (1,536,319.00)(1,328,076.00)(1,365,656.17)(3,24 1,864.38)(2,736,582.58) Adjust bal to $5 mill (won't be corrected until year end}0.00 0.00 0.00 0.00 0.00 Less Interest in Fund Applied to Repayment 372,914.96)(313,407.18)(244,583.36 240,610.12 0.00 Net Transfer from Revenue Fund (1,909,233.96 (1,641,483.18,1,610,439,53 (3,482,474 .50}(2,736,582.58) Cumulative Prior Years R&C Repayments (8,742,193.00)({9,884,350.26)(11,346,045.41)|(12,956,484 .94)(16,438,959.44)| Due back to Utilites 767,077.60 179,788.03 0.00 9.00 0.00 R&C Cumulative interest (Retained)Applied As Part of Repayment '90,459.25.0.00 0.00 0.00 0.00 8,074,575.55 9,704,562.23 id 1,346,045.41 12,956,484.94 16,438,95944} INET OVE TO R&C FUND 1,968,542.70 2.440,806.72 1,601,513.39 3,702,109.44 4,765 526.86 IR&C FUND CASH FLOW PROJECTION Beginning Investment Balance 4,671,504.45 4,627,751.16 3,015,716.76 3,398,486.61 1,297,890.56 Disbursements-current year (572,732.26)(1,657,223.72)(771,146.20)(5,583,070.55)(3,800,000.00) Disbursements-prior year accrued (606,357.25)}(829,216.26)(276,735.45)0.00 0.00 R&C Repayment to utilities (773,897.74)(767,077.60)(179,788.03)0.00 0.00 Current year interest earnings 372,914.96 313,407.18 244,583.36 240,610.12 0.00 Current year Participants Contributions to R&C 4,536,319.00 1,328,076.00 1,365 ,856.17 3,241 864.38 2,736,582.58 Due back to Utilites Ending Investment Balance 4.627,751.16 3,015,716.76 3,308,486 61 T2587 890.56 |W934 47314 | Accrued R&C Payable at year end-Due to Utilities (767,077.60)(179,788.03)}0.00 0.00 0.00 jAccrued R&C Payable at year end 829,216.26 276,735.45 0.00 0.00 0.00 PROJECTED NET DUE +ENDING INVESTMENT BALANCE eee?200,000 00 J §,000,000.00 §,000,000.00 5,000,000.00 5,000,000.00 REPAYMENT AMOUNT $238,606 X 25%all 4 years $054,181.80 xX 25%ail 4 years 4th yr 238,545.45 '$756,665.11 X 25%all 4 years 3rd yr 189,166.28 [4th yr 189,166.28 '$1,455,830.05 X 25%all 4 years 2nd yr 363,957.51 [3rd yr 363,957.51 H4th yr 363,957.51 $1,401 048.53 X 25%all 4 years 'ist yr 350,487.13 [2nd yr 350,487.13 [3rd yr 350,487.13 [4th yr 350,487.13 $1,834,499.92 X 25%yr 1 |25%yr 2 |50%yr {st yr 458,624.98 f2nd yr 458,624.98 [final yr 917,249.96 18771,146,20 X 25%yr 1 |75%yr 2 ist yr 182,786.55 [final yr 578,359.65 |$5,583,070.58 X 25%yr 1)32%yr 2 |25%yr 3 |18%yr 4 1st yr 1,395,767.64 [2nd yr 1,786,582.58 $3,800,000 x 25%all 4 years 1st yr 950,000.00 1442,156.37 |7.362.235 ,00 | 7305,056.17 |73,241,864 38 | 2,736,582.56| 7/21/20152:59 PMH:\Accounting\AEA FY16 FS Shared Files\Bradley Lake\Budget\2016 BradleyBudget-Amend 1-PROPOSED.xIsxSch D-R&C-2 years total repaid at 6/30/17 remaining to repay at 7/1/17 FY18 FY19 FY20 1,401 048.53 - 1,834,499.92 - 771,146.20 : 3,182,350.21 (2,400,720.34)1,395.767.64 -1,004,952.70960,000.00 (2,850,000.00)950,000.00 950,000.00 950,000.00 (5,250,720.34)2,345 767.64 1,954 .952.70 950,000.00 Page 14 of 14 ITEM10 Unit Statistics: Bradley Lake BPMC July 30th,2015 Operators Report Generation Unit 1 (MWhrs)Unit 2 (MWhrs)Total (MWhrs) June 2015 9,205 16,607 25,812 Hydraulics Avg.Lake Level (ft)Usage (ac ft)Fishwater (ac ft) June 2015 1,123 26,634 2,245 Lake Level -July 28 -1,153.8' Projects:1)Nozzle Refurbish -Unit #1 outage began on July 15".Each nozzle was removed from the runner pit and staged on the generator floor.NAES was very conscientious toward Safety and planning during the heavy lifting phase of the nozzle removal and there have been no injuries or incidents to date. Progress report and inspections: All Unit #1 nozzles have been dismantled and inspected Major replacement parts are on site and verified Nozzle piston rod inspection identified areas of pitting and separation of the chrome overlay on 4 of 6 piston rods.Corrosion and pitting was also noted on the base plate of all piston rods.Prior to the outage the spare piston rod was shipped to Repair Technology Inc.in Seattle for similar repair to investigate and test repair options.The repaired piston rod was received back from Seattle a week before the outage after more than 5 months of delays.Alaska Roteq in Wasilla also visited the Bradley Project and reviewed the nozzle manufacturing to offer an alternative to sending the piston rods to Seattle. Upon review of the work performed in Seattle it was determined that the repaired shaft was not properly chromed and the restoration was subpar. Therefore,the determination was made to have Alaska Roteg repair the piston shaft damage.The required repair is substantially more than anticipated;however at this time BLPP does not anticipate outage schedule changes or budget adjustment.However,a final budget analysis is pending deterioration rate on unit #2 piston rods. The outer nozzle housings and needle bodies also show signs of erosion and pitting on the large components with 20+years of service. Considerable time and effort will go toward applying rust inhibitors and corrosion resistant coatings to prevent further rust and pitting.The O&D committee over the next several years should review the data reports from the BLPP 2015 outages and make a determination regarding replacement cost and options to address replacing or remanufacturing the nozzle housings,needle body and large not readily replaceable components during the next rebuild cycle. Bradley Lake Operator Report Page 1 2) 3) Bradley Junction Switch Removal -This project was postponed when the tie line was removed from service due to fires on the peninsula.It will be rescheduled at a future date. Fishwater Debris Removal -The O&D Committee discussed current lake water flow inlet rates and railbelt scheduled projects for comparison to projected lake level drawdown curves.At first glance it appears the Bradley Project participants will need to increase Bradley Lake load allocations to enable lake drawdown by Spring of 2016. The O&D Committee discussed a proposal that correlates to the lake level drawdown curve.If the actual level exceeds the projected drawdown level then the lake would be deemed to be in spill condition and spill allocation rules would apply. The plugged iniet manifold #1 flow has become more restricted throughout the winter. #1 manifold maximum rate today =16 CFS #2 manifold maximum rate today =94 CFS Runoff from North Fork continues to average above 30 CFS which has enabled the project to meet required fishwater flow this year.If the Fishwater Debris removal is postponed beyond May of 2016,there are no guarantees that minimum fishwater flow requirements can be met if lake levels are below 1130' New information came out of Hydrovision that indicates the diversion tunnel gates were designed to be self-flusning and can be opened and closed without damage.This concept will be worked into an updated debris removal plan after summer inflows and ail maintenance projects are reviewed. Operations and Maintenance: 1) 2) 3} 4) Peninsula fire tie line opening,Unit #2 Emergency Trip.6/16/2015.(2024)-Unit #1 was being removed from service to accommodate opening of the tie line.The dispatcher inadvertently tripped Unit #2.Unit #2 was restarted at 2040.The units operated in island mode from 6/16 to 6/24. Division of Natural Resources 5 Year Inspection -Brandon Tucker and KevinMcClearofDNRwereonsiteJune18"to conduct a five year site and permit inspection.They indicated the site conditions were acceptable.They were provided access to the Powerhouse site and dam. Power Tunnel and Diversion Tunnel Gatehouse Maintenance -Polarstar construction was on site June 15""-17"to perform rust prevention and painting services. Power Tunnel and Diversion Tunnel Annual Gate testing -was completed onJuly13".The gates functioned properly Bradley Lake Operator Report Page 2 5)NUKA Diversion Platform Repair -Work was performed to repair and stabilize the valve access platform at the Nuka diversion.One of the platform mounting brackets broke and allowed the platform to rotate 90 degrees on the opposite bracket.Platform design was modified to reduce platform surface area to prevent future bracket damage due to ice and water flow. 6)GVEA Board Site Visit -Nine members of GVEA and board were on site fromJune29""-July 1°.Tours and overview of the Powerhouse and Dam were provided to the group. 7)JOA Surveys (GPS Monitoring)-They requested the use of various site locations to gather GPS information.We allowed them to use Pathfinder Aviation andtransportedtheirtechniciantogatherdataaroundplantsiteonJuly7. 8)FERC inspection is re-scheduled to August 27".&nliteeeae)hey:ithecomictaey,*.oe4Enemedesa0o3apeatog:ese.7oh:ibaeSieaRokRe'eyBradley Lake Operator Report Page 3 Pitting on Needle Main Body,prior to appliation of rust inhibitors and corrosion coatingneSNESSeeecoenenogy=angi "atlas ont $4 earns aio rnen em Tas senate Stepadcoches,” ¢we aaare chat'ep a :+bag go PTAdesgSarsaeeanngCongSPpasbevy oD de tettlleBENcmeOS ye edOSptTgESbp.weeABD;weeTBlepaiOPetekwilMasalaPS47'a sald Sludge mixture from silt in lake water Bradley Lake Operator Report Page 4 Page 5BradleyLakeOperatorReport Bradley Lake Project Management Committee meeting -Alaska Online Public Notices Page 1 of 1 STATUS:Active Bradley Lake Project Management Committee meeting ALASKA ENERGY AUTHORITY (AEA) Regular Meeting Notice is hereby given that the Bradley Lake Project Management Committee will hold a regular meeting on Thursday,July 30,2015 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 in person.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 Details AGENDA.pdf .Commerce,Community andDepartment:Economic Development Revision History Category:Public Notices Created 7/23/2015 8:53:31 AM by Sub-Category:Advisory Committee Meeting tawebster :Location(s):Statewide Modified 7/23/2015 8:54:27 AM by [Details]Project/Regulation #: tawebster Modified 7/23/2015 2:25:39 PM by [Details]Publish Date:7/23/2015tawebsterArchiveDate:7/31/2015 Events/Deadlines: https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=177653 7/23/2015 Bradley Lake Project Management Committee meeting -Alaska Online Public Notices Page 1 of 1 STATUS:Active Bradley Lake Project Management Committee meeting ALASKA ENERGY AUTHORITY (AEA) Regular Meeting Notice is hereby given that the Bradley Lake Project Management Committee will hold a regular meeting on Thursday,July 30,2015 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 in person.Dial 1-888-585-9008,Enter Code 467-050-126#. The public is invited to attend.The State of Alaska (AEA)complies with Title II 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 Details None Department:Commerce,Community andp:Economic Development Revision History Category:Public Notices Created 7/23/2015 8:53:31 AM by penemraaa aahisory Committee Meetingtawebster. Modified 7/23/2015 8:54:27 AM by [Details]Project/Regulation #: tawebster Publish Date:7/23/2015 Archive Date:7/31/2015 Events/Deadlines: https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=177653 7/23/2015 Bradley Lake Project Management Committee meeting -Alaska Online Public Notices Page 1 of 1 STATUS:Active Bradley Lake Project Management Committee meeting ALASKA ENERGY AUTHORITY (AEA) Regular Meeting Notice is hereby given that the Bradley Lake Project Management Committee will hold a regular meeting on Thursday,July 30,2015 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 in person.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 Details BPMC AGENDA.pdf Commerce,Community andDepartment:Economic Development Revision History Category:Public Notices Created 7/23/2015 8:53:31 AM by oe egory:qaisory Committee Meetingtawebsterocation(s):tatewide Modified 7/23/2015 8:54:27 AM by [Details]Project/Regulation #: tawebster Modified 7/23/2015 2:25:39 PM by [Details]Publish Date:7/23/2015 tawebster Archive Date:7/31/2015 Modified 7/27/2015 4:49:30 PM by [Details]tawebster Events/Deadlines: https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=177653 7/27/2015