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IMC Dec 2, 2015
e « ALASKA INTERTIE MANAGEMENT COMMITTEE AGENDA Tuesday,December 2,2015 9:30 a.m.-11:30 am Alaska Energy Authority,Board Room 813 W.Northern Lights Boulevard,Anchorage,Alaska 1.CALL TO ORDER 2.ROLL CALL FOR COMMITTEE MEMBERS 3.PUBLIC ROLL CALL 4.AGENDA APPROVAL 5.PUBLIC COMMENTS 6.APPROVAL OF PRIOR MINUTES --October 16,2015 7.OLD BUSINESS A.Review of Reliability Standards integration proposals from EPS and Henri Dale B.Spin requirements -IOC Recommendation C.SVC warranty policy update -AEA D.Douglas substation upgrade --MEA 8.NEW BUSINESS A.Teeland Bypass substation approval -MEA 9.IOC /OPERATORS REPORT -ML&P/GVEA 10.COMMITTEE ASSIGNMENTS 11.NEXT MEETING DATE 12,ADJOURNMENT To participate via teleconference,dial 1-888-585-9008 and use conference room code 467 050 126 LYE --CPOs NO Ouiager UN LAANBudgetComupdakrs,ryt ple TOC Ca®%chan B+ilo 10:40 p Intertie Management Committee Regular meeting MEETING MINUTES Wednesday,December 2,2015 Anchorage,Alaska 1.CALL TO ORDER Chair Joe Griffith called the meeting of the Intertie Management Committee to order on December 2, 2015 at 9:31 a.m.A quorum was established. 2.ROLL CALL FOR COMMITTEE MEMBERS Brian Hickey Chugach Electric Association (CEA)225". Cory Borgeson Golden Valley Electric Association (GVEA)Joe Griffith Matanuska Electric Association ( Kirk Warren Alaska Energy Authority (AEA Jeff Warner Anchorage Municipal Light &Po er (ML&P) 3.PUBLIC ROLL CALL Burke Wick (CEA);Gary Kuhn,Ed Jenkins,Tony Izzo,David Pease (MEA):Kirk Warren,TeriWebster(AEA);Mark Johnston,Karen Bretz (ML&P);Mark.Johnson (CEA);Allen Gray (GVEA);Bob Day (Homer Electric Association (HEA));Kirk Gibson (McDowell Rackner &Gibson PC);Brian Bjorkquist (Dept.of Law);Dave Gillespie (ARCTEC);Dave Burlingame (EPS);Henri Dale;and Bernie Smith." 4,AGENDA APPROVAL a MOTION:Mr.Borgeson made a motion to appr ve thee agenda as |presented.Motion seconded by 6.A PROVAL OF PRIOR MINUTES -October 16,2015MOTION:Mr."Borgeson made aa'motion to 'approve the prior minutes of Oct.16,2015.MotionsecondedbyMr.Hickey.The motion was approved unanimously. 7.OLD BUSINESS ®:.ss7A._Review of Reliability Standards integration proposals from EPS and Henri Dale The committee reviewed the two proposals from EPS and Henri Dale,LLC.Updating the reliability standards will be a joint effort between the two.Initial focus will be on the Balancing Standards and the underfrequency load shedding system.Mr.Dale's previous and ongoing work of combining the Regional Reliability Organization (RRO)and IMC standards will be not effected and were not a part of this recent proposal submission. One major item lacking in the standards are established measurables that they both have been instructed to incorporate. The final version is due by the end of December in order to present to RCA by the time they open the reliability standards 1/1/16. IMC Meeting Minutes-December 2,2015 Page 2 of 3 MOTION:Mr.Borgeson made a motion to approve a combined $100,000 to amend and update the Reliability Standards from EPS and Henri Dale,LLC.Motion seconded by Mr.Hickey.The motion was approved unanimously. 7B.Spin Requirements -IOC Recommendations There has been a resolution on the allocation of the spin requirements and all of the standards.The documents are currently being reviewed by all the participants and just expect a few edits.Should be in final form in a week. Mr.Griffith noted that the IMCis thein house keeper of the re i ility standards and spinrequirements.The IOCis the technical knowledge behind it:'Itisa living document. 7C.SVC Warranty Policy update Mr.Kuhn presentec115kVtransmission system to the IMC controlled 138kV line between Teeland and Douglassubstation. There was no motion. 9.REPORTS 9A._Intertie Operating committee report /Operators Report Mr.Warner gave the Operators and JOC reports. Mr.Johnston gave an update on the recovery of the ML&P worker who was shocked in October.His recovery is going well and a full recovery is expected.A GoFundMe account was set up to help with medical expenses and with donations from all the utilities 24K was raised. 9.COMMITTEE ASSIGNMENTS e MEA isto bring a formal proposal for the Douglas substation upgrade to the next meeting. e The Budget committee is to give an update at the next meeting. IMC Meeting Minutes-December 2,2015 Page 3 of 3 10.NEXT MEETING DATE his retirement on January 8,2016." 12.ADJOURNMENT There being no further business of the IMC,the meeting ad ured at 10:50 a.m.: Joe Griffith,Chairman Kirk Warren,Secretary ALASKA INTERTIE MANAGEMENT COMMITTEE MEETING Wednesday,Dec.2,2015 -9:30 AM **PLEASE WRITE LEGIBLY** NAME Organization NB ERM LE S00 ZL.LUBLLCje"aby J eA CGuest »V JTerc.TZo MéEAJYDianDoorkquistAGOALidlfallespiteACLTEC. AMAL HP CHES” V Myth Jonueae Chu ot,Lavi Vease WPA AC Custly Kohuw ING AavenRvetrMUP to SJenKin Y\(74 AVDWe "BurliraB gy2 FPS 4:03 toh 'Dove Yur ogame Mccabe -work teeter,wrad 1s tele -dere 4-6 wes+o Menge HealAs ” Ih-EP reise £46 »|ERS.Deen Rec.Conformance Moddceitwn A qrsa Medstanrge Corto Gnoea,7S.Fund,.Ab Meds Pk Ma 002,,EP5 propesals does this,Dur (odays Trap,Seq load shucleAodmelwe Cory-Who we go tof will be Vege and On GOING +Lavieg doc wment,sue EPS Aw lead SpUROL who tee keepin,Guy Burke,EM Alan,cdVONDe'Pe radbelb B,sha , >Agger UL neckeap T CONNYS 0a.Tlnbeoud por aIne RecbedpKenDerryaal¥e spin Murfeh ato 2 stds.2 doce vs.2HERstocABaerves,Just then write sids aePond'row Woe Fulog »]REA works.Kea ea dd take yrs te WoL an.cporedocter llepenTOCsecnredeiecLeceplatsh,Ten cal)issues:done Bd on Hele aeronOgansh Atindenentte DAgnecments,15%Mote,2S.vole BloweeBRagrecaPleCoddyou.de\ivec bats,not locking @ 3 R.WN Meratre2 Stard anda .History TOC odepted NEF Ads,VELS Hawi AdnokK ROC Facmed atten 5 terni cane or became AeBriancameactteiRS€euised CPSA Hye Foe bud nol paswed.lwieg dex..to ¥<¥ce lay,Engnecewa,ank yes for CPS,, At Mar over Consu Hs -Chan py TOS ArlenWhe20%exsrstiraele+#right aqaa to ether nes changedGeno7seinnea,OLE GOW:wore,pete It4me .Teck ads and2 .Moko Amen PaB 100,00)to cover Coad tonrauitantsCaryBrian 2ndLSUpawedRSferroMloeett,aver RRO-KRS Zh son SOW.bpd ove proposals ?Awe desi cionte IDGA(Can.Wenri -eerie jave updaste.omMeSPincog-CMe chve dofe midiuna pur ih Sanchons fer infractionaASdethinllsIMC's eeaur nob toeTLSNEByeoffAlstomAM wl guu pata Spr warredty «Z2¥I7 Jeleshena support\f0 Hann Syg acsapink,dlesource BOlaor Veview Jor sale source, Alstrom wl Contract Wo AZ.Mehon,UN ies Suggort decision solesupsby?Ory Brian |. &ony.Fording,Loot hike Ga Wael.poteatiad \€G0 (fons.Doug leo 7 tecland ,reapproMONbeneededby1GCUNMoedetardwltorved(Prepon Sheed WwPropose.Lane.RAPP men 80 TS0 no ushen06 adie aecntteeey, worl LUI Qofundue Tecovery goin Wwe 29) 0?Be ATTENDANCE -IMC Dec 2,2015,9:30:am"Phone i _COMMITTEE MEMBERS _oe 7 |-_ALTERNATE / CEA keWickerBrianHickey|-_Birk e Wic ZPieWarner-MLP |¥'Mark Johnston 7 Kirk Warren,Secretary/Treasurer AEA --Sara Fisher-GoadCoryBorgeson|GVEA piisndallen GrayEvan"Joe”Griffith,Chairman _MEA ||Gary Kuhn : 7 Public Members _| COUNSEL|74 Bernie Smith "KirkGibson,McDowell Rackner&-BobDay-HEA>Gibson PC a Brianan Bjorkquist,Dept.of Law _ AEA Staff Tor MER Jocelyn Garnier >Me AKON -_7 Teri Webster 'Gre Yarren Lye -COS NO Oudages nrquarkn . Ruder Com updates met ig TOC Col?op chan BY \(io IO:5O pb ALASKA ENERGY AUTHORITY Intertie Management Committee Alea Tole 4 Kir it-@osen lan Grey GVEA"<oe Warner -votingarkTanneor IMC:Dec 2,2015 Oo'¢4 oi at _ean?, cok WO Jay >WY,7RollCallgendaMinut©4 Roll call from top to bottom ending with Chair 'oR RBS Yes No Yes No Yes No Yes No Yes No WAGoldenValleyElectricAssociationCoryaa7 'WA Matanuska Electric Association "4,5 \//A Alaska Energy Authority (Ly rie UZ \wr a " Municipal Light &Power cy A 4ack "wsChugachElectricAssociationBeotal;A a 4 TOTAL ||I |I Roll call from top to bottom ending with Chair Yes No Yes No Yes No Yes No Yes No Golden Valley Electric Association Matanuska Electric Association Alaska Energy Authority Municipal Light &Power Chugach Electric Association TOTAL Next Meeting: Intertie Management Committee Regular meeting MEETING MINUTES Friday,October 16,2015 Anchorage,Alaska 1.CALL TO ORDER Chair Joe Griffith called the meeting of the Intertie Management Committee to order on October 16, 2015 at 9:00 a.m.A quorum was established. 2.ROLL CALL FOR COMMITTEE MEMBERS Brian Hickey Chugach Electric Association (CEA) Cory Borgeson Golden Valley Electric Association (GVEA) Joe Griffith Matanuska Electric Association (MEA): Gene Therriault Alaska Energy Authority (AEA):Jeff Warner 3.PUBLIC ROLL CALL day. 4,AGENDA APPROY. 6.|APPROVALOF PRIOR MINUTES-Sept.1,2015 MOTION:Mr.Therriault made a motion to approve the prior minutes of Sept 1,2015.Motion seconded by Mr.Hickey.The motion was approved unanimously. 7.OLD BUSINESS 7A.Spin and Reserves Negotiations Update Mr.Dale gave an update on the negotiations.The committee has gone through half of the documents and will be meeting again on 10/23 to continue review of the standards.The committee has so far agreed that the largest unit on the system may be a declared capacity rather than actual capacity.If the declared capacity is used on the final standards the unit would need to be operated in such a fashion that it could not go above the declared capacity.The unit owner would also be responsible for any additional spin on a 1-to-1 basis if the unit were to be operated above its declared capacity. IMC Meeting Minutes-October 16,2015 Page 2 of 3 Capacity between declared and actual could not be counted as spin in the daily spin calculations.The committee also has discussed possible penalties as incentive to not go over their declared value. 7B.SVC Warranty Policy update Mr.Warren stated ML&P signed a five-year term contract plus a three-year warranty with Alstrom. The warranty will cover spare parts.AEA was asked to present a contract proposal at the next meeting. 7C.Douglas substation upgrade proposalMr.Kuhn updated the committee on the expenses of the upgr.MEA suggested 30 percent of theestimated$1.1Mis attributable to MEA's distribution system-and 'hot the intertie.Discussed potential financing mechanism such as potential ase by.the State or use of the existingappropriationoriginallyappropriatedfortheextensionoftheintertie oA An approval of expenditures was asked to be présented at the next meeting: 8.NEW BUSINESS 8B._Railbelt transmission plan update 8A and 8B where switched.Mr.Warren Steedi aah 2014version of the Railbelt transmission Motion:Mr.Borgeson made ¢a motion to pay Henry Dale $16,000 for work done on the reliability standards and authorize future payments for new work performed.Motion seconded by Mr.Hickey. The motion was approved unanimously. 9.REPORTS 9A._Intertie Operating committee report /Operators Report Mr.Warner gave the Operators and IOC reports. 9.COMMITTEE ASSIGNMENTS IOC to continue spin discussions. 10.NEXT MEETING DATE Call of the chair. IMC Meeting Minutes-October 16,2015 Page 3 of 3 12.ADJOURNMENT There being no further business of the IMC,the meeting adjourned at 10:30 a.m. Joe Griffith,Chairman Kirk Warren,Secretary H Dale LLC Box 60173 Fairbanks,AK 99706 907-322-9228 Henri@HDaleLLC.com October 30,2015 Alaska Energy Authority c/o Joe Griffith,IMC chair 813 West Northern Lights Anchorage,AK 99503 Dear Mr.Griffith: Pursuant to a motion at the October 16,2015 IMC meeting where H Dale LLC and EPS were asked to provide proposals to fully update and conform Reliability Standards adopted by the IMC,|am pleased to provide the following proposal for work in conjunction with EPS who will provide their own proposal. Work will entail review,and if necessary,propose modification to the existing IMC standards. Additional standards that may be required for EPS to complete its other contracts with AEA so these will also be evaluated.Review will be performed from the perspective that the standards must work in the Railbelt in both a multiple utility balancing area future or in a unified single balancing area future. Order of review will be partially determined by the need of EPS to complete its other contracts in a timely manner.Drafts will be distributed for comment and 7 meetings to be held in Anchorage are anticipated.Henri Dale will attend 4 of them (one of which is the final meeting)and attend telephonically on the rest.The work is expected to be completed by the end of 2015 with the exception of the date for the Final meeting which is at the pleasure of the IMC. Work will be done on a time and materials basis.H Dale LLC's estimate for its work and meetings described above is: 186 hours @ $200/hr +$1,600 (est travel reimb)totaling $38,800 Sincerely, Henri F.Dale PE Cllectric Power Systems Consulting Engineers Mr.Joe Griffith Intertie Management Committee Chairman 813 West Northern Lights Blvd Anchorage,AK 99503 October 30,2015 Subject:Railbelt Reliability Standards Support Mr.Griffith; Electric Power Systems,Inc.(EPS)is submitting this proposal to the Intertie Management Committee to support the efforts of the railbelt utilities in developing Reliability Standards for the entire Railbelt region.This proposal is in response to the IMC motion adopted October 16,2015.The final reliability standards will be based on the existing Railbelt Reliability Standards as the initial point and will be finalized through a series of meetings and draft revisions of the standards. Scope of Work EPS will review the existing Railbelt Reliability Standards and make recommendations for modification,if appropriate,to modify the standard for the Railbelt Transmission System.Although all of the standards will be reviewed,it is expected that most of the effort will be concentrated on the Balancing Standards,in particular AKBAL-001,AKBAL-002 and AKBAL-003.These standards deal with the operation of the power system and the obligation of each balancing authority in the system.PRC-006 defines the requirements of the underfrequency load shedding system and is a critical standard in the development and implementation of both the balancing standards and the planning standards.This standard will be the first standard updated and modified during the process. In addition to the Balancing Standards and the Protection standard,the Facility standards and Reserve standards will also be reviewed and finalized. The transmission planning standards,TPL-001,002 and 003 will be reviewed and modified to outline the system planning requirements for the interconnected system as well as the requirements of the transmission system not covered by the Reliability Standards and Transmission Planning protocols. We anticipate that each standard will be reviewed and modified by EPS and Henri Dale.Draft recommendations and red-lined documents will be distributed for comments to each of the parties.The comments will be reviewed and consolidated and a meeting will be coordinated to review the proposed document.A final set of red-lined documents will be distributed following the meeting and a final approval meeting will be coordinated.We assume that the standards will be approved at the final meeting.If the standards are approved,EPS/Dale will finalize the documents,together with a revision history and explanation for use by the utilities.If the documents are not approved,EPS/Dale will provide a summary document of the standard,the standard as proposed and the dissenting opinion and items of contention.EPS/Dale will provide a recommendation and the decision document for the utilities'resolution. PHONE (425)883-2833 *4020 148TH AVE NE,SUITE C,REDMOND,WA 98052 ¢FAX (425)883-0464 PHONE (907)522-1953 *3305 ARCTIC BLVD.,SUITE 201,ANCHORAGE,AK 99503 *FAX (907)522-1182 VAWV_EPSINC.COM PROPOSAL The project will be administered by David Burlingame out of our Anchorage office.Mr.John Hieb,P.E.who has extensive experience dealing with similar standard modifications in the Hawaii electrical systems will be responsible for reviewing and making recommendations for modifying the standards,submittals and reports. We have assumed a total of 7 Anchorage meetings will be required for the project.Mr.Hieb will attend via teleconference.Each standard is assumed to have two revisions and two standards are assumed to require further resolution. Principal Staff -. P .ProjectTaskEngineer|Engineer CostHoursHours Standards review 66 210 $44,496 Meetings &Coordination 46 48 $16,848 Totals 66 210 $61,344 If you have any questions,please give me a call at 646-5103. David W.Burlingame,P.E. Principal Engineer PAGE 2 OF 2 WWWEPSINC.COM gah ee iS ae reieeeren Perewd ns'35 _- ;= f ¥T i ale=:if y 4 a}et Dated:6-Nov-15. Ref:DPS-8243 V12 Offer to Alaska Energy Authority,USA SVC Service support 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 INTRODUCTION TO ALSTOM GRID SERVICE NORTH AMERICA 3 ALSTOM GRID SERVICE OFFER -Gold Hill,Healy and Teeland.4 TECHNICAL SUPPORT 5 ENGINEERING &FIELD TECHNICAL SUPPORT .............seccsscssscssssessscscensessacssssscscscssssceesssecscesescecenseeesesteestesseenseees 5 PRICING SCHEDULE.............es eesssssccssecensssserenscsesseosscssacesesoscecesceseconsrecenacsseesesesssesoasssaranssesssscessraesensessessessetsnee 6 PREVENTIVE MAINTENANCE ON YEAR 1&5 8 Maintenance SCOPE ..........cescssccscsesscecesscesccsseesssscescrssncecssevesssssscestsenstsnssanesessesesserscesesesceasceseatencescaseasacanacarasenesssace 8 Maintenance Schedule details .............cscsscsssssccssescessssecssssssesssesssonssscosecescsssacssssssenssssacstescsssseerssssacsceseneasseeasecenteces 8 Out of maintenance SCOPE ............csccsscsscercssscssccseserssescsssssesconsessesssrseasscsensssssessssesesssesscsssseseetensesssssseeseecenseeseracees 11 PRICING SCHEDULE...........cccsscccsscsccssscesesscrsessesessecessceessessscsencosesesssesseacecseceesssssasersssensssssestensatsnssaseassessceenseneess 11 TRAINING ON YEAR 1&5 12 TIAiNING SESSION ...........scsceccessssessscecscsssssoscsssessscssesascsscsenenstonsssoesssuscssssssesesseessensecnssstessssestacesscenenseasacsssssasecserseeees 12 Special training NOteS...........cscssscssesssssssescsssecssssssssecssrecsesssnsessnscosssesesosssscssesossrsersseeseessesessassesessnsorscsasssensecssensses 12 PRICING SCHEDULE.............cscossceccsssceseeccossrecsscesesseesasscsescacssssosssenesesssscsnsssesesncesssssscsassesessseasstsacateacsescsseereesers 12 HEALTH ASSESSMENT ON YEAR 3 14 Service SCOPE .........essscessescsssssceccscesesesessenssnsssssrcsscssssseaseasecsecscsecsscsscosesceossnssacecesensessesseaceseneeenestessenseneesesssesansecees 14 Excluded from Scope........seseeuaceuscancessenscssescsaussausssacstssasacssceacssessuscunseasenesenssssssenssnesesesesenseacesenasesesssesesssersenssaceas 14 PRICING SCHEDULE.............cccscscsscessscscssssseccssssscsrcssessosscneosecsssacesscesscnssssessscaussscsasesessasssenessenesesacaesseesecaeeessseees 14 STRATEGIC SPARE PARTS 45 MITBF Introduction ............cscscssscosscseccessscorercsusereseseossssnsnssscsessucensosecsosssssesenseosssecarssasessetsnssateasensensessasensseseterseees 15 Criteria used to define the spare parts QUANTITIES ...............cccscsccscsccecsssssercessessssscssesscntessecssrsescssssreseresorssecsssessesees 16 Calculation of spare parts for 30 years of normal Operation.............:.scsccscescsssscssseccsssesssssesseccssesessssesessecsrensseesceces 17 PRICING SCHEDULE................csecssssssceseescecceseeerssctscessesessesessssccssssescsssccscssesssessaeescnsesaesenssenssnsessnscenssesssenseacseatene 18 COMMERCIAL CONDITIONS 20 Payment Ter ............scsscscssscessscsscssssscsssssseseseasosssssscnsasacsesesscsasssssecesasssssessessassesseseevesssseacanssesssoesesssesenensasesonses 20 TERMS AND CONDITIONS OF SALE...eecessceccesesesecneescesceeseeasssaccesssessessesesccsssensesensssnsesssensenscacsseseceseeersns 20 Offer Validity ............:csssssscscssssssssesseccessssessecesssessaesensonssscossesconscssssseaseessnsscssscasesesesusecauesscassscesseessacsarsnesesacsesanseses 20 Duration of CONtraCt .............:escssscesssccsssssssssecsscsccsseesssscesssssescssssscesessssasssersassacosssssocessesssacssssesesasatecssessesssenessensons 20 Cancellation .............cccscscsssscsssscssseessccvssesesseseesssenessensssenenesoveasssnencvscosesascesacensesonesacesssseessessesenssasacessasensaescseessessses 20 INDOXAtION «0.0...eeesesssceccocssseescescsreersescsssseoasscenssseoesetsonsssessessececosevacesnssssuesstesseneasonsaseassssseneaseasaseasssscseeseasseeresess 21 Pricing summary without indexation .........ssssssecssscsscesecseassssssssessvensecssssesscssssesssssenssesesesssesesesssesssarseseseceseseees 21 Pricing summary with the minimum 2%indexation for illustration 00...sessseccesecssessssseececerertecsssssceseesenseseses 21 ANNEX A -ALSTOM 2015 STANDARD RATE SHEET 22 23ANNEXB-EMPLOYMENT COST INDEX Table of content ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15.Offer to Alaska Energy Authority,USAee ALSTO'MRef:DPS-8243 V12 SVC Service support INTRODUCTION TO ALSTOM GRID SERVICE NORTH AMERICA For customers with Power Electronic equipment,one of today's biggest challenges is to ensure a full availability of their equipment and minimize its lifecycle cost.Power Electronic systems are major investments that need regular service check-ups and as most of these installations are highly complex,they require specific expertise from trained service teams. ALSTOM Grid Service North America (NA)has been mandated to provide a complete range of services to support ALSTOM Grid Power Electronics systems delivered to its customers.In keeping with this mandate,our North American Service group established a strategy to become a key player in Power Electronic Services in North America. ALSTOM Grid Service NA has an on-going program to acquire power electronics service know-how on all new products designed and manufactured in our Power Electronic Factory in Stafford-UK (PES),Philadelphia-USA (PEP) and Tampere-Finland (PET).As a result,all our Field Specialists are certified by our manufacturing units for commissioning,repair and maintenance of Alstom's products.This certification consists in the participation to factory acceptance tests and on-site system commissioning with factory experts,combined with some theoretical training on the new products.The goal of the above structure and initiatives is to bring the maintenance and technical support competencies closer to the customer as well as providing competitive pricing for all power electronics'after sales support. Within this strategy,ALSTOM Grid commits to continuously support customers'individual needs throughout the Power Electronics (PE)system's lifecycle.Our offer covers the entire equipment life by proposing a complete range of services to ensure equipment continuity and full availability. The ALSTOM Grid focal service units around the world are managed by strict quality managements systems - including our own methodology -and fulfill the requirements of ISO 9001,environmental standards 1S014001,and OHSAS 18001. This document constitutes Alstom Grid's technical support service proposal for the three (3)static var compensators of the Alaska Energy Authority located at its Gold Hill,Healy and Teeland Substations. For more information on our service offering,please contact the undersigned. Pierre de la Borderie, PE -Technical-Commercial Engineer Service North America GE Energy Management Grid Solutions T +1 450 659 1399 ext.331 M +1 514 347 5795 pierre.de-la-borderie@ge.com www.gegrisolutions.com 1400 Industrielle St. La Prairie,QC,JSR 2E5,Canada, Imagination at work ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,ts strictly prohibited. Dated:6-Nov-15.Offer to Alaska Energy Authority,USA A LSTOMRef:DPS-8243 V12 SVC Service support 1 =ALSTOM GRID SERVICE OFFER -Gold Hill,Healy and Teeland. In order to support your Static Var Compensators (SVCs),ALSTOM GRID (hereafter also Alstom or Company) proposes the following services to the Alaska Energy Authority (hereafter also AEA or Customer): e Technical Support e Maintenances e Operation &Maintenance Training e Health Assessment e Spare Parts Each service is detailed in the following sections. ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15. Ref:DPS-8243 V12 Offer to Alaska Energy Authority,USA A LSTOMSVCServicesupport 2 TECHNICAL SUPPORT 2.1 ENGINEERING &FIELD TECHNICAL SUPPORT This service provides phone engineering and field technical support to AEA's operation &maintenance team as required,24 hrs/day &7 days/week.A single point of contact (1-866 number)will be provided upon execution of this agreement for telephone-based technical support in order to assess problems and recommend a course of action.As described in the following sections,2 types of support are proposed to the customer.The first one is a remote support done by phone.The other is the onsite support when a visit is needed to support the customer's maintenance and operation team.This support is evaluated at 16 nominal hours on site annually. 2.1.1 Proposed operational mode for remote assistance by phone 4.The Customer calls the 1-866 line.For optimal support,when placing a call,the Customer should have readily available the failed equipment ID number/Part number and/or the alarm name. 2.24 hrs/day &7 days Alstom Grid answers the call immediately or within 2 hours when a voice message is left 3.At receipt of a call and at incident resolution,the Incident Report Matrix held by Alstom Grid will be filled to detail the following information: a.Contact information of caller b.Date and time of call c.Failed equipment !D number/Part number and/or the alarm name d.Reason for call e.Resolution details 4.Acumulative Incident Report Matrix will be sent to the Customer annually for each preceding year,as well as monthly for any month in which incidents were opened or closed. 2.1.2 Proposed operational mode for onsite field interventions and support 1.Incase of field support request,the Customer may call the same 1-866 line and Alstom Grid shall arrange to have a Specialist to investigate and troubleshoot the system on site. 2.This service is estimated at 1 trip to site per year by 1 engineer for 16 hours of support to AEA operation & maintenance team on site. ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15.Offer to Alaska Energy Authority,USA A LSTOMRef:DPS-8243 V12 SVC Service support 2.2.PRICING SCHEDULE 1.To have access to Alstom's phone technical support 24 hours per day,365 days per year,the Customer will be invoiced an annual fix fee. 2.For the phone technical support hours,the Customer will annually authorize the utilization of the following hours versus the year of exploitation of the SVCs: -Year 1,2,3:45 hours of support -Year 4:84 hours of support -Year 5:84 hours of support The utilization of these "nominal”support hours,is,for each hour worked,regardless of whether the work is provided by an employee at a level 2,level 3 or at any other level of technical specialization,including project management,and regardless of whether the work is performed during or outside of the Monday- Friday 8am-Spm regular workweek,so that the nominal hour includes overtime,weekend and holiday work.The Customer will be entitled to 213 nominal hours over the 5-year term of this agreement,valued at $232 per hour. 3.For the field support,the Customer will annually authorize an amount equivalent to one trip to site for 16 "nominal”support hours on site.The Customer will be entitled to an amount of dollars equivalent to approximately 5 trips to AEA's site.For each site visit,Alstom will use this amount to invoice the onsite activities in time and material. Daily allowances,travelling fees (flight ticket,car rental ...),and any tools/material shipment will be invoiced at cost+15 upon presentation of receipts;for the "nominal”hours used for work or travel,they will be invoiced at $232 per hour during the 5 years. 4,For both services,if the "nominal”hours available under the agreement are not fully used,the unused amount will be added to the amount available for the following year.If the Customer exhausts the available amount under an annual purchase order,any further technical support in that year will be,first,charged against 25%of the following year's amount and,thereafter,provided in accordance with Alstom's standard rate sheet current in the year of the excess expenditure. 3.ALSTOM GRID will monthly invoice Customer for all support provided,based on actual hours spent and expenses incurred during the month. 4.Atthe end of the 5 years of technical support,if an unused amount remains on the blanket purchase order, Customer will have the option of receiving at their 2015 base value (i.e.,$232 per hour)a credit towards purchase of spare parts or any future services at then-prevailing costs or rates. 5.No indexation will be applied by Alstom to the "nominal”hourly rate of $232 for field or phone technical support of this section for the duration of the contract. ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15. Ref:DPS-8243 V12 Offer to Alaska Energy Authority,USA SVC Service support ALSTOM Total Price for Phone Technical Support Services Total for 5 years 24/7 phone technical support access fees (4000/year)$20,000 Phone Technical support For 213 hours at $232 per hour $49,416 Onsite support amount equivalent to approximately 5 trips $66,645 ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15.Offer to Alaska Energy Authority,USAid ALSTOMRef:OPS-8243 V12 SVC Service support 3 PREVENTIVE MAINTENANCE ON YEAR1 &5 The goal of the preventive maintenance of the equipment is to keep the system at the highest state of availability by checking the health and functionality of the equipment. 3.1 Maintenance scope Alstom Grid will provide preventive maintenance on all equipment listed in the Table of section 4.2,covering the following responsibilities: e Plan and schedule the maintenance with the customer e Perform the preventive maintenance tasks as per Maintenance Schedule of section 4.2 with the exctusion of the tasks identified as "Excluded from this offer”,which should be performed by the customer e Preparation of maintenance report e Replacement or repairs planning e All required maintenance tools and testing equipment During the preventive maintenance activities,if any problem is reported,a corrective maintenance plan will be prepared and presented to the Customer.Our price for the maintenance on years 1 and 5 excludes any spare parts that might be required for replacement of failed parts. 3.2.Maintenance Schedule details The preventive maintenance covers SVC valves,controls,cooling plant and is detailed in the following Maintenance Plan. The maintenance plan detailed below is in line with each OEM recommended maintenance schedule. The below maintenance plan indicates the preventive maintenance required.A more detailed plan is available on request. ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15.Offer to Alaska Energy Authority,USA_ALSTOMRef:DPS-8243 V12 SVC Service support Teeland,Gold Hill &Healy substations maintenance plan ection cathy OF on][OF |On line ;Line line |;Line Visual check of all levels Dust!\| Arcing Trace ! Electrical connection Vv v Led indicator (LPS and Firing) Snubber capacitor inspection |: Cleaning Cleaning levels (3 phases)i ' Cleaning Valves chambers|H ' Level Thyristor impedance measurement vi i vi! Valves -TCR Snubber grading measurement :voiValvesHallPE--7 ;* &TSC LEU &GDU verification with bluebox AC injection for LPS (level power supply)i VACinjectionwithgatecurentmeasurement|I VBO High voltage injection and measurement|'Vv : Indoor CT Visual inspection voi vou Polarity,ratio,Saturation,DC impedance,DC I ' isolation|v Indoor PT Visual inspection vi vi! Poiarity,ratio,DC isolation {vii General inspection General inspection V Vcheckalllamps|| Cleaning Cleaning cubicle]}vii ' Historic Dowload logfile for analysis}|v {l v Electrical verification Measure voltage and redundancy supply 'v 'v VIS Led verification 'ov 'ovControls- 1 ! Control .Analogue input(cubicles +PE --<-----Room HMI)CT chain verification in the delta TCR |vot CT chain verification from the line !vod PT chain verification in the dela TCR 've | PT chain verification from the line I voy PLC Download historic Vv |lov Main input/output verification 'voi Alarm and trip verification i v3 Functionnal Up sequence verification (Start sequence){v : Down sequence verification (Stop sequence)!vi! ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15.Offer to Alaska Energy Authority,USAyen ALSTOMRef:DPS-8243 V12 SVC Service support -€j Offline lon line Off line |On Line _---i i Visual inspection (capacitor,fuse,isotator,CT,PT) Oust! Damage (ceramic crack,missing epoxy)<Arcing Trace Cleaning Wash down Inductor {:| Inductor Measure L| TCR TCR -Inductors PE OC impedance Bushings Bushings -visual inspection||j ' CT (See contro}) Visual inspection i Vv i} t 1 L CT-Polarity,ratio,Saturation,DC impedanee,DC isolation PT (See control)PT for Valve switching Visual inspection <PT -Polarity,ratio,DC isolation General inspection 50/51 -To a Protection Relai qj 3x overcurent injection and trip verification Threshold verification Protections SVC]SVC Protection PE Control -Current protection 3x overcurent injection and tip verification <Threshold verification Control -Voitage protection Valves Switching verification <Threshold verification Cleaning Utility SVC/Industrial SVC (EAF)|i i Air cooling Dust Check filters q Check belts v j Check flaps Air flow sensor verification PE PLC download historic, Record how the system is evoluating Motor current measurement, insulation test resistance winding. bearing,noise,Contactors motor attachment CoolingAirCoolingPlant Functionnal Up sequence verification (Start sequence) Down sequence verification (Stop sequence)| |Calibration Check of instruments ' ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15.Offer to Alaska Energy Authority,USA_ALSTO'MRef:DPS-8243 V12 SVC Service support 3.3 Outof maintenance scope Excluded from the preventive maintenance offer: e De-energization and grounding of equipment to be maintained e Re-energization of the SVC e Maintenance on other civil installations e Maintenance of non-Alstom Grid provided equipment e Any spare parts that might be required for replacement of failed parts e Execution of repairs identified during preventive maintenance e Yearly minor maintenance as per manufacturer's recommendation. 3.4 PRICING SCHEDULE 1.The price will be indexed as per Section 7.6 on Indexation. 2.The maintenance fee will be invoiced at the beginning of each related year,in January. Total Price for Maintenance on years 1 &5 of operation Based on 2015 rates; Total 5 years Services indexation Excluded Minor Maintenance on year 1 $69,618 Major Maintenance on year 5 $134,414 ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15.Offer to Alaska Energy Authority,USA"mes ALSTOMRef:DPS-8243 V12 SVC Service support 4 TRAINING ON YEAR1 &5 Alstom is proposing a refresher training year 1 &5.The trainings will be performed either the day before the first maintenance on the site of the first maintenance or the day after the last maintenance on the site of the last maintenance.The training will last 1 day and is targeted for operator personnel. 4.1 Training session e SVC description of each element and its components:4h *Single Line Diagram and Layout «Protection &Control " Thyristors valves and valve base cubicle "Cooling system e SVC operation principle 4h =Control system operation =Protection system operation =HMI operation *PLC logic of SVC =FTC control System =Cooling System =Valves system 4.2 Special training notes e The daily refreshments and lunch for participants attending the training course and for the instructor will be provided by the Customer. e The class room training will be done in the Customer's facility or a class room will be made available to Alstom by the Customer free of charge.A projector and a flip chart will be provided by the Customer. 4.3 PRICING SCHEDULE 1.The price will be indexed as per Section 7.6 on Indexation. 2.The training fee will be invoiced at the beginning of each training year,in January. ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15. Ref:DPS-8243 V12 Offer to Alaska Energy Authority,USA SVC Service support ALSTOM Total Price for Training on years 1 &5 of operation Based on 2015 rates; Services Total §years Indexation Excluded Training year 1 $4,519 Training year 5 $4,519 ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15.Offer to Alaska Energy Authority,USA"ee ALSTOMRef:DPS-8243 V12 SVC Service support 5 HEALTH ASSESSMENT ON YEAR 3 By data analysis and reporting. 5.1 Service Scope e Between the start-up and the Major Maintenance (meaning year 3),an analysis of the SVC controls,valves and cooling (except yard and transformers)data will be done.For this exercise,the following data shall be provided by the customer before Alstom can start this exercise: ®Log file on all events occurred during the year (or since last assessment or installation) e All yearly maintenance,and visual inspection reports including measurements taken as per maintenance plan recommended by OEM *-List of all interventions done on SVCs since last assessment or installation including parts replacement =Spare parts inventory including manufacturers and purchased dates e Preparation of the health status report on the SVC controls,valves and cooling detailing: »Spare parts inventory recommendation =Obsolescence status *Recommended condition based maintenance,special interventions,parts replacement, special investigations required 5.2 Excluded from Scope e On-site investigation activities e Problem investigation and resolution 5.3 PRICING SCHEDULE 1.The price will be indexed as per Section 7.6 on Indexation. 2.The health assessment fee will be invoiced at the beginning of the year it will be executed,in January. Total Price for Health assessment on year 3. Based on 2015 rates; Total 5 years Services Indexation Excluded Health Assessment $23,744 ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15. Ref:DPS-8243 V12 Offer to Alaska Energy Authority,USA A LSTOMSVCServicesupport 6 STRATEGIC SPARE PARTS The goal of this section is to propose to the customer recommended spare parts to keep the system running during the estimated life of the equipment. This selection of spare parts is prepared for equipment with normal operation and recommended maintenance,and is based on Alstom's experience and expertise in terms of MTBF for critical parts (Mean Time Between Failure)and considering normal market obsolescence of the electronics components. 6.1 MTBF Introduction PREDICTIVE RELIABILITY The purpose of predictive reliability is to evaluate the failure rate (4)or the MTBF of the device for a specified lifetime. The failure rate of a large population of similar and non-repairable items showa typical bathtub curve (fig 1)with the following three phases: Early .Useful Life |Wearout Failures f failures A(t)-| | \>t (fig 1) 1.Early failures: Where A(t)generally decreases rapidly with time.The failures in this phase are attributed to randomly distributed weaknesses in materials,components or production processes.To eliminate early failure,burn-in or environmental stress screening is used.This phase is also called infant mortality.These failures will usually happen during warranty. ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15.Offer to Alaska Energy Authority,USAed ALSTOMRef:DPS-8243 V12 SVC Service support 2.Useful life: Where failure rate is approximately constant and is useful for calculations.The failures are intrinsic and random (mainly related to failure of silicon material). 3.Wear out failures: WhereA (t)increases with time.The failures in this phase are attributed to degradation phenomenon due to aging,fatigue,wearout,etc. 6.2 Criteria used to define the spare parts quantities Field failure experience: The method used to predict reliability is the collection and analysis of all field failures. The advantage of this methad is that it gives the best reliability evaluation. Alstom Grid Service supports more than 300 SVCs worldwide and many efforts are made to continuously collect data on all critical devices used in our systems.All unit failure rates used in this offer are based on Alstom's experiences for digital control systems,and thyristors valves. Obsolescence: The risk of obsolescence in 15 years is a criteria used to do a weighted average rate of the quantity calculated in the predicted reliability. Alstom Grid Service supports many obsolete technologies and performs a continuous obsolescence watch on all parts used in our product.Consequently by using our experience and by extrapolation,the risk of obsolescence is evaluated. Also,the criticality of each obsolescence has been considered. Reparability: The reparability of the parts ts used to do a weighted average rate of the quantity calculated in the predicted reliability. Alstom Grid Service investigates and repairs damages on all SVC parts.Consequently,by using our experience,the degree of reparability is defined. ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15. Ref:DPS-8243 V12 SVC Service support Offer to Alaska Energy Authority,USA ALSTOM 6.3 Calculation of spare parts for 30 years of normal operation Valve it Fail Risk of iticality of -Qty for 3 Unit Failure Total Failures for sko Criticality 0 Reparabilty RecommendeItemDescriptionQty/SVC Rate per year]Obsolescence the _SVCs ;30 years .%d Quantitiesinpercentin30years|Obsolescence 1 Thyristor 48 144 2%86 High High 0%96 Unit Failure .iticali oo Qty for 3 Rate Total Failures for Risk of Criticality of Reparabilty RecommendeItemDescriptionQty/SVC ae Obsolescence the .SVCs (per million 30 years .%d Quantitiesin30years|Obsolescencehours) 1 Gate Drive Units 48 144 21 57.7 High Medium 80%12 2 VBO Circuit 24 72 2.1 28.8 High Medium 80%12 3 Snubber Capacitor 24 72 7 96.2 Medium Medium 0%72 4 Snubber Resistor 24 72 1 13.7 Low Medium 0%12 HMI Unit Failure Risk of Criticality ofQtyfor3RateTotalFailuresforskoriticality0 Reparabilty RecommendeItemDescriptionQty/SVC ane Obsolescence the aSVCs(per million 30 years |%d Quantitiesin30years|Obsolescencehours) 1 Server 1 3 5.0 2.9 High High 0%3 2 LCD 1 3 1.1 0.7 High Low 0%1 3 Network Switch 2 6 11 1.3 High Low 0%2 4 KM 1 3 2.3 1.3 ___High Low 0%-1 1 i) VME Rack Unit Failure Risk of Criticality of ca Qty for3 Rate Total Failures for isko Tineality ©Reparabilty RecommendeItemDescriptionQty/SVC vie Obsolescence the _.SVCs (per million 30 years |%d Quantitiesin30years|Obsolescencehours) 1 VME rack +5011 1 3 1.8 1.0 High High 80%1 PCBs in VME rack Unit Failure Risk of iticality of a Qty for3 Rate Total Failures for 'sko Criticality Reparabilty RecommendeItemDescriptionQty/SVC "as Obsolescence the _SVCs (per million 30 years .%d Quantitiesin30years|Obsolescencehours) 1 Control boards 1 batch 3 5.2 3.0 High High 0%3 batchs 2 (/O Boards 3 9 5.2 8.9 High High 10%9 ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15.Offer to Alaska Energy Authority,USA A LSTOMRef:DPS-8243 V12 SVC Service support Critical devices in Control cabinet Unit Failure Risk of Criticality of a Qty for 3 Rate Total Failures for icality Reparabilty RecommendeItemDescriptionQty/SVC age Obsolescence the _,SVCs (per million 30 years ;%d Quantitiesin30years|Obsolescencehours) 1 Transceiver 1 3 5.1 2.9 High High 0%3 2 Driver 1 3 5.1 2.9 High High O25 3 3 Changeover 1 3 1.8 1.0 High Medium 50%1 4 Interface 1 3 1.8 1.0 High 4 Medium 50%1 5 Ethernet Converter 1 3 1.8 1.0 High Medium 50%1 6 Reset 1 3 1.8 1.0 High Medium 50%1 6 Watchdog 2 6 1.8 2.1 High Medium 50%2 7 {0 Module 1 3 1.8 1.0 High Medium 50%2 8 VIS Board 8 8 2.28 3.5 __High__Medium 50%1 I 1 1 VBE Unit Failure Risk of iticali wo Qty for3 Rate Total Failures for isk oO Criticality of Reparabilty RecommendeItemDescriptionQty/SVCc "a Obsolescence theSVCs(per million 30 years .%d Quantitiesin30years|Obsolescencehours) 1 VIS Board 2 6 5.1 5.8 High 4 Medium 50%2 Control board in VBE ; ; ;2 50100 +S0101 12 36 5.1 35.0 High Medium 50%12 6.4 PRICING SCHEDULE 1.20%downpayment at receipt of purchase order. 2.The remaining 80%of the price will be invoiced to the customer upon delivery of the parts as per agreed incoterms. 3.Delivery terms:EXW-La Prairie,Qc,Canada ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15.Offerto Alaska Energy Authority,USA ALSTOMRef:DPS-8243 V12 SVC Service support Price details for spare parts for the 3 SVCs. Items Qty Unit Price total USD DCR3480B52 96 $910.77 $87,434 Gate drive 12 $2,355.00 $28,260 Valves VOLTAGE BREAK OVER (VBO)CCA,5KV 12 $2,577.00 $30,924 SNUBBER CAPACITOR NWL S00303 2.84 x 4.5 72 $1,465.00 $105,480 Snubber Resistor 12 $420.00 $5,040 KM 1 $1,128.57 $1,129 HMI Archive Server 3 $23,063.33 $69,190 Managed Network Switch 2 $2,913.85 $5,828 LCD 1 $1,961.54 $1,962 Rack VME 1 $9,122.86 $9,123VMErack 5011 Patch panel 1 $1,600.00 $1,600 Kontron PMC 253 (interface board for 7807)3 $3,220.00 $9,660 PMC-0247RC-272000 (hard disk drive for 7807)3 $3,034.29 $9,103PCBsinthe , VME rack Pentium boards 9 $14,397.14 $129,574 Sharc Cards 9 $8,565.71 $77,091 1/0 board 9 $3,311.43 $29,803 Optical Transceiver 3 $3,357.14 $10,071 Databack Driver 3 $6,294.29 $18,883 5010 Changeover 1 $2,514.29 $2,514 . 5012 Interface 1 $1,225.71 $1,226CriticalVMEResetPanel1$877.14 $877DevicesInControlPCB2226(Profibus Watchdog)2 $988.57 $1,977 Cabinet Ethernet Media Converter,Westermo MCW-211-MM-LC2 1 $1,751.43 $1,751 16ch Input module,48VDC 1 $3,135.00 $3,135 8ch Output module 1 $2,571.00 $2,571 Digital Input Module,Wago 750-409 1 $265.14 $265 Digital Output Module,Wago 750-5 1 $388.57 $389 Backplane 2 $1,111.43 $2,223 VBE Cabinet 50101 6 $3,670.57 $22,023 50100 6 $5,389.76 $32,339 Total Price 701,444 $ ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15.Offer to Alaska Energy Authority,USAweno ALSTOMRef:DPS-8243 V12 SVC Service support 7 COMMERCIAL CONDITIONS 7.1 Payment Terms e All prices are in US Dollars. e Taxes and Duties,as applicable,are not included in the prices of this offer. e =All invoices will use 2015 prices indexed for the current year of invoicing using Section 7.6. e For Services described in Section 3,Section 4 and Section 5,the invoice will be sent to the customer at the beginning of the year in which the service is planned to be performed. e For Services described in Section 2,at the end of each month,the actual hours spent and expenses incurred during the month are invoiced on a Time and Material (T&M)basis in accordance with the provisions of said Section 3. e For Services described in Section 6,the invoice for 20%of the price will be sent to the customer at receipt of PO and the remaining upon delivery of the parts. e NET 30DAYS payment:Payments shall be released within 30 days of customer's receipt of invoice. e All time and expenses out of Alstom's control will be invoiced to the customer. 7.2.TERMS AND CONDITIONS OF SALE e Terms and conditions will be governed by the "Contract to replace and upgrade static VAR compensators and associated systems on Alaska intertie substations -Amendment No.4” e Delivery terms for parts in Section 6:EWX La Prairie,Qc,Canada. 7.3 Offer Validity Our offer is valid until November 30,2015. 7.4 Duration of contract Unless otherwise provided,this contract shall commence on the date of execution by the last signatory hereto and continue in effect for five (5)years.The contract may be extended on mutually agreed terms,which shall be decided in writing at least 3 months prior to the end of the contract. 7.5 Cancellation The Customer may cancel the contract at any time provided the customer pays for all performed work including partially completed work and reasonable direct costs incurred as a consequence of the cancellation.No payments done for work to be performed later in the year will be reimbursed.If Customer has paid in advance for the entire suite of services under this agreement,then upon Customer's cancellation it shall be refunded the amount paid in advance valued at the 2015 base value minus (i)all amounts already invoiced for performed work under the contract ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15. Ref:DPS-8243 V12 Offer to Alaska Energy Authority,USA A LSTOMSVCServicesupport since the beginning,including partially completed work as well as (ii)reasonable direct costs incurred as a consequence of the cancellation. 7.6 Indexation All offered prices,including Field Service Rate Sheet (Annex A),are in US dollars based on 2015 prices.A minimal annual indexation of 2%will be applied for jobs executed in subsequent years.The Employment Cost Index (EC!)for wages and salaries,for private industry workers,by occupational group and industry-not seasonally adjusted (Table 9.)from the Bureau of Labor Statistics (BLS)will apply if above 2%of annual increase.See Annex B for more information on the ECI index.The price calculation adjustments will be made yearly on January 1*and the latest version of the ECI index will be used. 7.7.Pricing summary without indexation Total §years Services indexation Excluded 24/7 phone technical support -access fees 20,000 Phone technical support 49,416 Onsite support 66,645 Maintenance yr 1 69,618 Maintenance yr 5 134,414 Training 9,038 Health assessment 23,744 Strategic Parts 701,444 TOTAL USD $1,074,319 7.8 Pricing summary with the minimum 2%indexation for illustration - Total 5 years Services With indexation 24/7 phone technical support -access fees 21,232 Phone technical support 49,416 Onsite support 66,645 Maintenance yr 1 71,010 Maintenance yr 5 148,405 Training 9,600 Health assessment 25,197 Strategic Parts 701,444 TOTAL USD $1,092,949 ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15.Offer to Alaska Energy Authority,USA A LSTOMRef:DPS-8243 V12 SVC Service support ANNEX A ALSTOM 2015 STANDARD RATE SHEET The folowing raves ave based on mammal wondeg days af @ wordcg fours,from Mondayto Friday. All prices are in USD dollars Regular time a Overtime Weekends Field specigksts LEVEL-2 (Powerrats'armess-Ea manzenacce} (Power eectranes -ESD mamerances Field Specialsts LEVEL-2 (si5 n-eaees-Ay 178 $/hour 248 $/hau |278 $/haus (Pane rats'a-mes-Tut estacting)250 $f hour 220s fhour |g35$/hour (Ponereectorcs -Tuutestaatirg: Engineering-l2 Cosa ing 228 8 /tower #15 ss/tour |3835 /nour Engineesing-L3.Excert 255 $7 tout 3828 /nou |332 $/nour Project Management TED Sf oye LIVING /TRAVEL EXPENSES Cai allowance -Meas 120 $f day Cai alicnance -Lodging minrnum 180 §fda? Comsat vehice 0.89$fin "sore egos,cheges Tey De exceeded "ee coer+20%viii men Se chevgedon oresenieron Of acex. ASS4 coe toage on veces vei ce ens ed on oce pe "o red ots de JSA and Jn ced Scares | Cer vente "ees.e-'eres ond Tece-®teissorteccn vni ce sed a cost aus 204 eden st-eton "ee. Leso-siory Tests 878 @-8 O54 Lo deTend. ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. Dated:6-Nov-15.Offer to Alaska Energy Authority,USA A LSTOMRef:DPS-8243 V12 SVC Service support ANNEX B -EMPLOYMENT COST INDEX The reference used for the Employment Cost Index for wages and salaries,for private industry workers,by occupational group and industry can be found in: e Service-providing industries :Utilities http://www.blis.qov/news.release/pdf/eci.pdf ©ALSTOM GRID LLC 2015.All rights reserved.Reproduction,use or disclosure to third parties,without express written authority,is strictly prohibited. ALASKA INTERTIE MANAGEMENT COMMITTEE List of Representatives Representative Alternate Utility Kirk Warren Sara Fisher-Goad Alaska Energy Authority Secretary/Treasurer 813 West Northern Lights Boulevard Anchorage,Alaska 99503 Teri Webster's ph:771-3074 Fax:771-3044 kwarren@aidea.orq sfishergoad@aidea.org Jeff Warner Mark Johnston Anchorage Municipal Light &Power 1200 East First Avenue Anchorage,Alaska 99501 Jeffs Ph:263-5282;242-7244 c Linda Davidovic's ph:263-5201 Fax:263-5204 warnerja@muni.org johnstonma@muni.org Brian Hickey Burke Wick Chugach Electric Association Vice Chairman 5601 Electron Drive Anchorage,Alaska 99518 Brian ph:762-4518 Connie Owens ph:762-4747 Fax:762-4514 Brian_Hickey@chugachelectric.com Burke_Wick@chugachelectric.com Cory Borgeson Allen Gray Golden Valley Electric Association P.O.Box 71249 Fairbanks,Alaska 99707-1249 Susan Redlin's ph:907-458-5721 Fax:458-5951 cborgeson@qvea.com ajgray@gvea.com Evan "Joe”Griffith Gary Kuhn Matanuska Electric Association Chairman P.O.Box 2929 (163 Industrial Way) Palmer,Alaska 99645-2929 Dawn Baham's ph:907-761-9285 Fax:761-9368 joe.griffith@mea.coop gary.kuhn@mea.coop Kirk Gibson McDowell Rackner &Gibson PC 419 SW 11*Street,Suite 400 Portland,Oregon 97205 Phone:(503)290-3626 Fax:(503)595-3928 Kirk@mcd-law.com Revised Date:November 30,2015 =ataeons Tasa MATANUSKA ELECTRIC ASSOCIATION MEMORANDUM DATE:November 25,2015 TO:intertie Management Committee FROM:Matanuska Electric Association Gv,{2SUBJECT:Teeland Bypass sutewtl,| MEA is planning on the construction of a new substation to directly connect MEA's 115kV transmission system to the IMC controlled 138kV line between Teeland and Douglas Substations.Therefore,pursuant to Section 6.4 of the Amended and Restated Alaska Intertie Agreement of March 2014,MEA is requesting the IMC authorize such improvements as detailed in the attached Protection and Control Description and electrical drawings. MEA believes these design documents are sufficient to demonstrate the ability of the proposed facility to interconnect to the existing transmission system so "as not to reduce the intertie's reliability'.All improvements shall be implemented in accordance with "Prudent Utility Practice”as demonstrated most recently by the interconnection of Hane Substation by Chugach Electric and the construction of the substation at Clear by GVEA. At this time,MEA is seeking approval with conditions for the construction of the Teeland Bypass Substation,based upon the configuration and protection philosophy outlined in the provided attachments.Once the conditions are met,MEA would be authorized to interconnect to the Alaska Intertie.After all 138kV and 115kV relay settings have been reviewed and approved by the appropriate subcommittee of the IMC,the interconnection could proceed pending operational scheduling and coordination with the intertie operator. The studies would be consistent with those required for the Hane and Clear substations performed by other Railbelt utillties. Enc:Teeland Bypass Protection and Control!Description Selected electrical drawings Teeland Bypass 138kV Substation Protection and Control Description This paper describes the general protection philosophy to be implemented for the Teeland Bypass 138kV substation;the final,detailed protection schemes will be developed after execution of a relay coordination analysis.All protection schemes described herein are fully redundant,equally robust systems.Although the individual relays have the suffix -P (primary)and -S (secondary),the level of functionality,reliability and security is equal between the two systems. The physical and protection/control designs described herein are designed to improve the 138kV system reliability by (1)introducing a ring bus configuration at Teeland Bypass and (2)installation of 400-series Schweitzer relays.The 400 series relays allow for high-speed tripping of faults and the ability for future use of synchrophasers to monitor system stability. Teeland Bypass Substation Electrical Description: The Teeland Bypass substation is designed to be an air-insulated,138-115kV facility located southwest of the City of Wasilla.The station in its original build-out will consist of a 3-breaker ring bus on the 138kV side with a 2-breaker collector bus configuration on the 115kV side connected by a 75/100/125MVA autotransformer.The station is electrically connected at the 138kV level in between Teeland substation,and the Douglas Substation,which is located approximately 25 circuit-miles distant to the north. The high-side circuit breakers are Alstom type DT1-145FK-F1 SF6 gas power circuit breakers,rated 145kV,2000 amperes continuous,and 40k amperes interrupting.The circuit breakers are labeled as MT262,MT362 and MT462.Circuit breakers MT262 and MT362 will frame the autotransformer;MT362 and MT462 will frame the Teeland Bypass-Douglas circuit and MT262 and MT462 will frame the Teeland Bypass-Teeland circuit.Line disconnect switches are provided to allow for de-energizing the 138kV line while keeping the ring bus closed.The line disconnects are labeled MT269 for the Teeland Bypass-Teeland circuit and MT469 for the Teeland Bypass-Douglas circuit. Protection Overview: Line protection for the 138kV circuits are provided by SEL-411L and SEL-421 numerical relays.The SEL-411L is an advanced line differential protection,automation and control system relay.Among its features are:phase and ground distance,synchronism check,over-current (time and instantaneous), over and under voltage,automatic reclosing and line differential capabilities.The SEL-421 is functionally equivalent to the SEL-411L except that the SEL-421 lacks line current differential capability. Breaker failure (stuck breaker)protection is provided using the SEL-451,a protection,automation and bay controller relay.Teeland Bypass bus protection is provided by the overlapping zones of protection from the two line circuits and transformer differential zone. Stub bus programming will be provided to modify tripping from the remote terminal if the local line disconnect switch is open (MT269 or MT469)but the corresponding framing circuit breakers are closed.Stub bus logic is enabled as soon the line disconnect opens causing zero currents to be transmitted to the remote ends and receipt of direct transfer-trip signals to be blocked. In addition to the direct protection schemes described here,indirect system parameters such as loss-of-potential and trip coil monitoring will also be incorporated into the overall protection and control philosophy. Teeland Bypass-Douglas 138kV Line Protection: Line protection for the Teeland Bypass-Douglas circuit,protection will consist of a combination of line current differential (87L)and step-distance (21P)elements using a permissive overreaching transfer-trip (POTT)scheme.The POTT scheme will utilize two,forward-looking zones:zone 1 will under-reach the remote terminal and zone 2 will over-reach the remote end.Reach settings will be determined during the relay coordination analysis. Upon detection of a fault on the protected line,the following logic will be executed: e For line current differential (87L),relays at each terminal will send a trip signal their local circuit breakers with no intentional time delay,key direct transfer-trip to the remote end and initiate breaker failure logic. e For step-distance (21P),a zone 1 fault will initiate immediate local circuit breaker tripping, generate a transfer-trip signal to the remote end and initiate breaker failure logic.Detection of a zone 2 fault will result in the transmission of a permissive trip signal to the remote end and initiate a local countdown timer.If the countdown timer times out and the permissive trip signal is still present,the local circuit breaker(s)will be commanded to be tripped and breaker failure logic initiated. Teeland Bypass-Teeland 138kV Line Protection: Because of the short line length between the Teeland and Teeland Bypass Substations,it is anticipated that line protection on this circuit will be primarily line current differential,however,the relay coordination analysis may suggest additional elements can be engaged to enhance protection reliability and/or system security. The difference between the Teeland Bypass-Teeland and the Teeland Bypass-Douglas protection schemes is that Teeland Bypass-Teeland will rely only on 87L protection for both primary and secondary systems. Upon detection of a fault on the protected line,the following logic will be executed: e For line current differential (87L),relays at each terminal will send a trip signal their local circuit breakers with no intentional time delay,key direct transfer-trip to the remote end and initiate breaker failure logic. Transformer T1 Protection: Autotransformer T1 will be differentially protected via an SEL-387E Current Differential Relay and an SEL-487E Transformer Protection Relay.Protective elements that are anticipated for use are current differential protection,phase and ground overcurrent,negative sequence,frequency and voltage protection.On the 115kV side of the transformer,two circuit breakers provide protection against low-side faults.The differential zone of the transformer includes the transformer and the 138kV circuit breakers: the 115kV circuit breakers are protected separately. Transformer T1 is framed by circuit breakers MT262 and MT362;therefore a transformer fault will require clearing both of these circuit breakers.As with the line protection schemes described previously, detection of a fault condition initiates breaker failure (stuck breaker)logic.In the case of transformer T1, the breaker failure schemes for MT262 and MT362 cross trip each other;that is,a fault condition identified for circuit breaker MT362 will initiate breaker failure logic for MT262 and visa-versa.The rational for this is that any fault detected by one transformer protection scheme should be detected by the other,thus clearing both circuit breakers. Breaker-Failure Protection: Breaker failure (stuck breaker)protection for all the Teeland Bypass circuit breakers will be provided using one SEL-451 per circuit breaker.If breaker failure is detected,the breaker failure relay trips a lock out relay,re-trips the affected circuit breaker and sends a direct transfer trip signal to the next upstream circuit breaker. MATANUSKA ELECTRIC ASSOCIATION,INC. Palmer,Alaska DRAFT MOTION for Intertie Management Committee Review and Consideration December 2,2015 Teeland Bypass Substation Construction Move that the IMC approve the construction of the Teeland Bypass Substation by MEA as outlined in the electrical drawing as well as,the relay and control description included in MEA's attached transmittal,conditioned upon:(1)the 1OC review and approval of relay settings;and (2)completion of |OC-required studies demonstrating no reduction in intertie reliability.These studies will be consistent with those performed for the interconnection of GVEA's substation at Clear Air Force Station and Chugach's Hane Substation. 2 ) ECV TearKv/12BV=06.00 700/1200:1 mpeLpeoMl3Teessacyone percrtd {UNE wreat wie1600816008 MT462 UTS?0)nee ae 183 arse 16004, Fae eatPP.OTK¥/113 8¥ 68.a¥79.0 70v/1h)BV-66.44700/1200:1 700/1700:1 ji cer res MT262 20004eafou oko 'aoa O t-s5vt (Ae) wre 70 67a ¥=2404/120016004 'HOLD se "Ho-4 tov cov sev TEELANO Ue ISSUED FOR BID ONLY NOT FOR CONSTRUCTION 9 _110113 paoxcr,TEELAND BYPASS SUBSTATION UPGRADES TNe STA eacennah we]DanwncnoPower TETERENCE_OR TTENG DETAR /PLON/SECTON DESORPTION mae aebescnre/onoect ENoneer,K.GOIS/S.WORCESTER,STANLEY CONSULTANTS xo Matanuska Electric/TEELAND BYPASS,SUBSTATIONDESIGN/CONSTRUCTION/ASBUKT REVISION DWN BY/DATE REVIEWED BY /OATE. r iz uw ie ein Sea |P_aPainaaOe]SWITCHING DIAGRAM ee ter cnet ever =Urn vn eR .SAD a Bane /$6 9/00/13 Te RPMSCUZOL/tea east + BOSe0 Fon Giuceay consis ion COOMATTON BD a pane aes roa fe gesaneee 11/0171 Pane,aK 69648 oar(907)761-9300iv7_*EESAATANUSIAELECTINGASSOCIATIONWW.MEA.COOP MTSS-EL-0004 [ocr tet (9 2 {TO TEL-WTR/SEL-735 12 WOC (+)(Des Owe) ISSUED FOR BID ONLY Ee 00 ome ALAT/CONMOLAMESHMLLMG CABNET'NOT FOR CONSTRUCTION _tts SHORTING TERMMLAL LOOK Pi RELAY/CONTROL/MARSHALUNG CARNET '©DEWCE Temanay N/M 3 fa ©ELO EQUIPMENT ThawmaL 1-59 = Beeraieee Loca -ureez wors:1.SMMLAR TO HOSTAL SUBSTATION NBRING TO/FROM UNE crSWITCH@AMDpCOMTACTSWALLOCSPARED.WO STUG BUS PROTECTIONULGEPROGRAMAEDATThusTwat w-e---ametySeeman, +[Close |eaemeee tlowSatSune!2 :tayPyby5\3 af 8 HRe.&es b-.---.4zeFyH130GrmFIBEROPTCTO1300nmFIBEROPTICTO 13000 FER OPT TO.FIBER O'S TRBU TON PAs,FIBER OFS TRIGUTION.PANEL,FIBER OSTRIBUTION PANELae,”(REF.OwG 1)(REF.OWS 1) TO SATELLITE CLOCK (REF.Owe 1) 50 Eton Sater (AEF.00g 1) 2px Ayor34 TO TE-MTR/SEL-735 129 VOC (=)(iS Owe) au 7Fy1 1 a Pa(sera,fuscons xs,Zo Li on as as TOOT Bee :!|38 at i 4 7 te-0 exe ur267gie31494..H our wae co .ste 5 (EO ge EEO ir"18 q 1 60 im port 2 =Port 5 NeonT aa?H 2 al 'i ate'L-4.--4------+----}----------weno lanl aaa atest ated ---4 03 outzoz Ts-4 sore -utzez 2'10 EMERNET Sento 1 -(mer ome td sor oe 3s &hf8 pry tsa BuR wTH62oursre'? 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Palmer,Alaska DRAFT MOTION for Intertie Management Committee Review and Consideration December 2,2015 Teeland Bypass Substation Construction Move that the IMC approve the construction of the Teeland Bypass Substation by MEA as outlined in the electrical drawing as well as,the relay and control description included in MEA's attached transmittal,conditioned upon:(1)the IOC review and approval of relay settings;and (2)completion of |OC-required studies demonstrating no reduction in intertie reliability.These studies will be consistent with those performed for the interconnection of GVEA's substation at Clear Air Force Station and Chugach's Hane Substation. Intertie Management Committee Meeting -Alaska Online Public Notices Page 1 of 1 STATUS:Active Intertie Management Committee Meeting ALASKA ENERGY AUTHORITY Regular Meeting Intertie ManagementCommittee The Intertie Management Committee will holda meeting on Wednesday,December 2,2015 at 9:30 a.m.For additionalinformation contact Teri Webster at (907)771-3074. This meeting will be conducted byelectronic media pursuant to AS 44.83.040(b)and AS 44.62.310 at the followinglocation: 'Alaska Energy Authority Board Conference Room 813 West Northern LightsBoulevard Anchorage,Alaska A teleconference line has been set up forthose unable to attend in person.Dial 1-888-585-9008,Enter conference room 467 050 126. The public is invited to attend.The Stateof Alaska (AEA)complies with Title II of the Americans with Disabilities Actof 1990.Disabled persons requiring special modifications to participate shouldcontact AEA staff at (907)771-3074 to make arrangements. 'Attachments,History,Details Attachments Details IMC Agenda-12.02.15.pdf ;Commerce,Community andDepartment:Economic Development Revision History Category:Public Notices Created 11/23/2015 9:44:57 AM by tawebster Sub-Category: Location(s):Statewide Project/Regulation #: Publish Date:11/23/2015 Archive Date:12/3/2015 Events/Deadlines: https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=179150 11/23/2015