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HomeMy WebLinkAboutIMC meeting Dec 14, 2016Juneau. TA 4CompLog J SFG Calendar Staff Calendar _/ Intertie Management Committee Resolution 16-1 Approving the Utility Memorandum of Agreement (MOA) 2016 Douglas Substation Upgrades,and Final Design and Budget WHEREAS,Matanuska Electric Association,Inc.(MEA)has proposed certain upgrades and modifications to the Douglas Substation,including the manufacture and installation of a new Control Enclosure.The Intertie Management Committee (IMC)determined that these Douglas Substation upgrades and modifications are necessary to insure continued safe,reliable,and economical operation of the Alaska Intertie. WHEREAS,the proposed Utility Memorandum of Agreement (MOA)2016 Douglas Substation Upgrades (attached)provides for the Alaska Energy Authority (AEA)to procure and deliver the Contro!Enclosure,and MEA to provide construction at Douglas Substation necessary for its installation.The proposed scope of work and estimated project cost is further reflected in the Final Design and Budget dated ___December,2016 (attached).This MOA also provides for the right to access and use the footprint of the Control Enclosure within the Douglas Substation for 45 years. WHEREAS,the 1984 Douglas Substation Agreement allows AEA and the IMC to use assets within the Douglas Substation needed to transmit power over the Alaska Intertie.The Douglas Substation Agreement will expire in 2019 unless extended.MEA anticipates negotiations over future use of the Douglas Substation to occur within three years.Until those negotiations conclude,terms for future use of these assets for Intertie purposes after the Douglas Substation Agreement expires remain uncertain.Continued operation of the Alaska Intertie through the Douglas Substation beyond 2019,will require an agreement to extend or replace the 1984 Douglas Substation Agreement. WHEREAS,before investing State monies on a control enclosure to be placed in the Douglas Substation,AEA requires the IMC resolution necessary for the project to proceed to (1) the IMC Utilities acknowledge that issues could arise when the Douglas Substation Agreement expires,(2)the IMC Utilities agree they are committed to negotiating and implementing a suitable extension or replacement of the Douglas Substation Agreement,and (3)IMC Utilities assume all risks associated with future negotiations with MEA. NOW,THEREFORE,IT IS RESOLVED THAT: Section 1.The IMC Utilities (a)acknowledge that issues could arise when the Douglas Substation Agreement expires,(b)the IMC Utilities agree they are committed to negotiating and implementing a suitable extension or replacement of the Douglas Substation Agreement,and (c)the IMC Utilities assume all risks associated with future negotiations with MEA. Section 2.The IMC approves the Utility Memorandum of Agreement (MOA)2016 DOUGLAS SUBSTATION UPGRADES. Section 3.The IMC approves Final Design and Budget dated December __,2016,for the 2016 Douglas Substation Upgrade Project. Dated at Anchorage,Alaska,this 14"day of December,2016 Chair Secretary Utility Memorandum of Agreement (MOA) 2016 DOUGLAS SUBSTATION UPGRADES December 14,2016 THIS AGREEMENT is between the ALASKA ENERGY AUTHORITY ("AEA')and MATANUSKA ELECTRIC ASSOCIATION,INC.("MEA”),and the Intertie Management Committee ("IMC”)on behalf of the Railbelt Utilities for a required upgrade of components at the Douglas Substation in Willow,AK.The upgrades include a procurement and installation of Control Enclosure (See Appendix A)and related work to be completed under the Agreement (Project). WITNESSETH: WHEREAS,in the 1984 Agreement,MEA allowed AEA to design and construct certain additions and modifications to the Douglas Substation in order to implement the Anchorage- Fairbanks Intertie Project ("Alaska Intertie'),and some of those components now need replacement at the Douglas Substation;and WHEREAS,the additions and modifications to the Douglas Substation contemplated as part of the "Project”addressed in these documents are contemplated to provide continuous operations for the benefit of the Alaska Intertie;and WHEREAS,the Alaska Intertie Agreement was amended and restated dated November 11,2011 (Amended Alaska Intertie Agreement),including to establish the IMC and to provide the IMC with certain management duties and authorities over the Alaska Intertie;and WHEREAS,Section 6.4 of the Amended Alaska Intertie Agreement provides for the IMC to approve certain modifications,additions,deletions,and changes to the Alaska Intertie ("Improvements”);and WHEREAS,the IMC has determined that the Douglas Substation must have certain upgrades and modifications made to it in order to insure continued safe,reliable,and economical operation of the Alaska Intertie;and WHEREAS,the project engineer,Engineered Power Systems,Inc.(EPS),has determined that there are significant technical and safety concerns with the existing Control Enclosure to warrant replacement;and WHEREAS,MEA owns and operates three distribution feeders at Douglas Substation and is willing to offset approximately 30%of the costs for the new Control Enclosure to provide for new distribution relaying at Douglas Substation;and WHEREAS,AEA agrees that replacement of the Control Enclosure and related project costs are required for the Alaska Intertie on behalf of the IMC and agree to contribute funds for the replacement Control Enclosure;and Utility MOA -Douglas Substation Upgrades December 14,2016 Page 2 WHEREAS,this Project is an upgrade of existing facilities only,the construction and installation of the Control Enclosure does not in any way alter the ownership,operation,or maintenance responsibilities as they existed prior to the Project;and WHEREAS,MEA will lease to AEA a portion of the Douglas Substation,the size of the footprint of the relay Control Enclosure,for an annua!fee of $1.00 (one-dollar)per year,for 45 years subject to:if the property ceases to be used by AEA during that time period,the leased property and all equipment thereon shall return to the sole control and ownership of MEA;at the end of the lease,MEA may elect to continue the lease in 5-year increments for up to an additional 10 years at its sole discretion;and WHEREAS,based on the consultant's cost estimate for the Douglas Substation Control Enclosure replacement and the Intertie Operating Committee (IOC -a subcommittee of the IMC) discussions of the project,the IOC has proposed and IMC accepted that project costs be split approximately 70/30 between AEA,owner of the Alaska Intertie,and MEA,owner of the associated distribution gear to be upgraded and/or replaced;and WHEREAS,based on MEA's Douglas Substation project engineer's cost estimate for the Douglas Substation Control Enclosure replacement,and the recommendation of the Intertie Operating Committee,the agreed upon allocation of Project costs can be accomplished by AEA, on behalf of the IMC,procuring the Contro!Enclosure;and MEA providing the design, engineering,installation,and commissioning of the Control Enclosure,and acting as the Project Manager (PM)for the Douglas Substation upgrade project,including the Control Enclosure commissioning.The respective tasks of AEA and MEA being further described in Appendix A; and WHEREAS,AEA has authorized funding to procure the Control Enclosure as an Intertie Cost from an appropriation made in sec.78(c),ch.1,SSSLA 2002 as re-appropriated in sec.69, ch.29,SLA 2008,with additional funding,if any,limited to additional amounts allocated by AEA from an appropriation or approved by the IMC and assessed to the Alaska Intertie users;and NOW,THEREFORE,it is agreed as follows: ARTICLE | Section 1.The construction contracts and all other maps,drawings,plans and specifications,contract forms,addenda,estimates,studies and other documents to be prepared shall conform to the applicable standard specifications and all applicable IMC utility practices and industry standards. Utility MOA -Douglas Substation Upgrades December 14,2016 Page 3 ARTICLE II Section 1.Subject to funding limitations,AEA shall procure the Control Enclosure and components as identified in Appendix A.This is the sole financial obligation of AEA under the terms of this agreement. Section 2.MEA shall perform the following: A.MEA shall design,install,provide project management,and commission the Control Enclosure,furnish labor necessary to design,manage,coordinate construction and/or participate in scheduled outages,testing and start-up commissioning as listed in Appendix A.The allocation of costs is based on the value of the transmission (70%)and distribution equipment (30%)equipment to be upgraded.Any cost overruns not funded by the State will become an IMC expense under the Alaska Intertie Agreement. MEA shall have its PM periodically provide the IMC and AEA with an opportunity to review the project design.These reviews shall,at a minimum,include: e Communication Design Concept e Protection Design Concept e 80%relay enclosure design The IMC and AEA will have approval authority of the final designs for the Project. See Appendix C for the Project layout design. MEA will provide off-site inspection of the Control Enclosure,prior to shipping the equipment from the manufacturer to assure that all components are included and that factory tests have been completed.Offsite inspections shall be paid for by the IMC.MEA will also inspect all materials and the workmanship incorporated into commissioning the Project for compliance with the specifications and for project completeness. MEA will take custody of the Control Enclosure from the manufacturer after the Control Enclosure arrives at the Douglas Substation,is placed on its foundation and has been unpackaged and assembled by the manufacturer's representative. MEA shall provide AEA and the IMC with written documentation of the transfer of custody from the manufacturer. MEA will obtain all necessary permits which are required for the Project and for MEA's operation and maintenance of the Douglas Substation. MEA will provide final as-built drawings to AEA and IMC. Utility MOA -Douglas Substation Upgrades December 14,2016 Page 4 H.MEA will provide representatives of AEA and other IMC members with reasonable notice of the date,time and place of all acceptance tests or inspections. 1.MEA shall ensure that the construction contracts and all other maps,drawings, plans and specifications,contract forms,addenda,estimates,studies and other documents to be prepared for the Project conform to the applicable standard specifications and all applicable IMC utility practices and industry standards, including but not limited to the Railbelt Reliability Standards. Section 3.Throughout the life of this Agreement,the AEA,payable solely as an operating cost under Section 8 of the Amended and Restated Alaska Intertie Agreement,shall be liable to MEA for costs incurred by MEA as a result of unscheduled outages or damages resulting from the negligence of AEA's contractors or personnel as related to activities under this Agreement.Such costs shall include lost revenue,if any.In no event shall AEA be liable for any claims from third parties or MEA consumers for damages resulting from such unscheduled outages.However,nothing in this section shall relieve AEA from its obligation to indemnify MEA from AEA's negligence as defined in Article III,Section 4. section 4.MEA will assign to the Project an MEA PM.The PM will ensure work by MEA or its contractor is being performed in a safe manner and as prescriber by applicable utility practices and regulations.The PM shall have dual authority to act on behalf of MEA and the IMC for matters relating to construction activities within the substation site,and shall become the sole MEA point-of-contact for such matters.The PM will control the manner or scheduling of the work which relies on the complete cooperation of AEA's Control Enclosure contractor(s). Section 5.MEA shall oversee the design of all relaying,communications and metering equipment.The installed equipment shall be compatible with MEA and IMC operations and the other utility users of the facility. Section 6.MEA shall provide a lease for the AEA for the Control Enclosure within the footprint of the existing Douglas Substation and on MEA owned property.See Appendix C. ARTICLE Ill Section 1.MEA may inspect all materials and the workmanship incorporated into the Project.Any such inspection by MEA does not in any way subject MEAto liability for final design as approved by the IMC and AEA,construction or operation of the Project.MEA will hire EPS, Inc.to design and commission the control equipment on behalf of AEA and IMC.EPS commissioning charges are a Project cost to be paid by the IMC.IMC and AEA have the right to review and comment on the design and determine the final design for the transmission components of the Control Enclosure. Section 2.During the Project,the AEA and IMC reserve the right to perform necessary operations and maintenance for the operation of the Intertie by reasonable methods in Utility MOA -Douglas Substation Upgrades December 14,2016 Page 5 cooperation with the intent stated requirements in Article 10 of the Amended Alaska Intertie Agreement provided for the life of this Agreement. Section 3.AEA,payable solely as an operating cost under Section 8 of the Amended and Restated Alaska Intertie Agreement,shall indemnify and save harmless MEA,its officers and employees,from all suits,actions,or claims of any type brought because of any injuries or damage received or sustained by any person,persons,or property on account of AEA's or the IMC's operation or maintenance of the Project or the Alaska Intertie before,during,or after construction of the Project,as a result of any neglect in safeguarding AEA's or the IMC's work, made by their contractors,or through use of unacceptable material in AEA's or the IMC's work, or because of any action or omission,neglect,or misconduct of AEA or the IMC,or from any claims or amounts arising or recovered under the "Workmen's Compensation Act”,or any other law,ordinance,order,or decree. MEA will hold AEA and the IMC harmless for claims for personal injury by MEA employees while working on MEA owned and maintained equipment located within MEA's Douglas Substation. Section 4.Representatives of MEA and other IMC members will be provided with reasonable notice of the date,time and place of all acceptance tests or inspections,and a representative of MEA shall attend all such test and/or inspections.All parties will be provided reasonable notice of scheduled outages related to the Project. ARTICLE IV Section 1.It is specifically agreed between the parties executing this Agreement that it is not intended by any of the provisions of any part of the Agreement to create in the public or any member thereof a third-party beneficiary relationship hereunder,or to authorize anyone not a party to this Agreement to maintain a suit for personal injuries or property damage pursuant to the terms or provisions of this Agreement. Section 2.This Agreement represents the entire agreement between the parties concerning the Project.The parties agree that all other agreements,written or oral,concerning this portion of the Project are merged into this Agreement. Section 3.This Agreement may be modified only in writing which must be signed by the appropriate officers of each party to this Agreement. Section 4.Nothing in this Agreement shall be interpreted to make AEA the agent of MEA or MEA the agent of the AEA. Utility MOA -Douglas Substation Upgrades December 14,2016 Page 6 DATED this day of ,20___,at Anchorage,Alaska. ALASKA ENERGY AUTHORITY By: Its: STATE OF ALASKA THIRD JUDICIAL DISTRICT The foregoing Agreement was acknowledged before me this day of ,20 , by ,the of the Alaska Energy Authority,an Alaskan corporation,on behalf of the corporation. Notary Public in and for Alaska My commission expires: DATED this day of ,20___,at Palmer,Alaska. MATANUSKA ELECTRIC ASSOCIATION,INC. By: Its: STATE OF ALASKA THIRD JUDICIAL DISTRICT The foregoing Agreement was acknowledged before me this day of ,20 ; by ,the of Matanuska Electric Association, Inc.,an Alaskan corporation,on behalf of the corporation. Notary Public in and for Alaska My commission expires: Utility MOA -Douglas Substation Upgrades December 14,2016 Page 7 DATED this day of ,20___,at Anchorage,Alaska. INTERTIE MANAGEMENT COMMITTEE By: Its: STATE OF ALASKA THIRD JUDICIAL DISTRICT The foregoing Agreement was acknowledged before me this day of ,20 by ,the of the Intertie Management Committee,on behalf of the committee. Notary Public in and for Alaska My commission expires: APPENDIXA Scope of Supply-Responsibilities By Alaska Energy Authority: e Cable Trench e Relay Enclosure F.O.B.the foundation o Structure including but not limited to: »HVAC =Lighting »DC Plant o Delivery,setting on the foundation and unpacking and assembly of the control enclosure is by the control enclosure vendor,per the contract specifications. o Protective relaying equipment acceptable to all users. o Communication equipment acceptable to all users. o Recording and metering devices/equipment By Matanuska Electric Association: e Preshipping inspection of the Control Enclosure e Labor to install the above identified equipment e Relay and communications settings Utility MOA -Douglas Substation Upgrades December 14,2016 Page 8 e Testing e Commissioning with all users e Geotechnical investigations e Inspections e Written Acceptance of Relay Module e Custody Transfer of Relay Module e Engineering e Construction Management e Fencing e Cabling e Foundation APPENDIX B LEASE AGREEMENT THIS AGREEMENT is made this day of ,2016,between Matanuska Electric Association,Inc.whose address is:P.O.Box 2929,Palmer,AK 99645 (hereinafter referred to as "Lessor”)and the Alaska Energy Authority whose address is:813 W. Northern Lights Blvd.,Anchorage,AK 99503 (hereinafter referred to as "Lessee'). 1.LEASED PREMISES Lessor does hereby lease to Lessee the surface of the following described land located in the Palmer Recording District,State of Alaska: Within the W1/2 NW1/4 SW1/4,and that portion of the W1/2 SW1/4 NW1/4 lying south of Willow Fishhook Road R/W as follows:a parcel of land the size of the footprint (30'x 70') of the Relay Control Enclosure,as further depicted on the attached drawing. 2.ACCESS Lessee and its contractors and employees may cross Lessor's Parcel so as to gain access to the Leased Premises,including use of the constructed driveway within Lessor's Parcel, provided that Lessee shall not have access to Lessor's substation facilities. 3.TERM OF LEASE This Lease is for a period of 45 years.The Lease may be terminated in advance of its expiration date by mutual consent of Lessor and Lessee. 4.RENTAL PAYMENT Lessee shall pay Lessor annual rent of $1.00 per year. 5.TAXES Lessee is not responsible for real property tax,but is responsible for any personal property taxes levied against Lessee's facilities kept on the Leased Premises. Utility MOA -Douglas Substation Upgrades December 14,2016 Page 9 6.UTILITIES AND MAINTENANCE Lessee shall pay for electricity and any other utilities it may require.Lessee shall be responsible for its own trash removal and maintenance of the premises including snow removal within the Leased Premises and access routes.Lessee takes the Leased Premises "as is”and makes no claim upon Lessor for any condition of the land that may be considered unusable for Lessee's purposes. 7.USE OF PREMISES AND SITE PLAN Lessee covenants that the use of the Leased Premises is solely for installation,operation and maintenance of a Relay Control Enclosure.Prior to commencing any site preparation, Lessee or its contractor shall obtain Lessor's approval of Lessee's plan for vegetative clearing,disposition of cut trees and brush,and other site preparation.No excavation shall be done on the Leased Premises without Lessor's prior approval.All disturbed areas shall be recontoured and revegetated so as to prevent soil erosion. 8.LESSEE COMPLIANCE WITH ALL LAWS Lessee,at its sole expense,shall comply with all laws,regulations,orders and ordinances of federal,state and municipal authorities,and with any direction of any public officer, pursuant to law which shall impose any duty upon Lessor or Lessee with respect to the Leased Premises.Lessee,at its sole expense,shall obtain all licenses or permits which may be required for its activities on the Leased Premises,and is solely responsible for determining which licenses,permits or authorizations are applicable to its activities.Lessor will cooperate with Lessee in Lessee's acquisition of needed permits or licenses and will, if and where necessary,join with Lessee in applying for such licenses or permits. 9.SURRENDER OF PROPERTY IN GOOD CONDITION At the expiration of the lease term,Lessee shall remove its facilities and surrender the Leased Premises to Lessor in as good condition as it was at the beginning of the term, free from contaminants,waste or contaminated soils.The Leased Premises does not need to be restored to original contours,but must be left in a condition that will not contribute to soil erosion within the Leased Premises or adjacent land. 10.RIGHT OF ENTRY Lessor and its representatives may enter the Leased Premises,at any reasonable time, for the purpose of protecting the property from loss or damage,inspecting the property, performing any work which Lessor elects to undertake made necessary by reason of Lessee's default of any of the terms of this Agreement,or any other lawful purpose. 11.LESSOR'S RIGHTS IN DEFAULTS Lessor shall give Lessee five days written notice of termination of this Lease if Lessee shall be in default in the performance of any covenant of this Lease Agreement and if such default is not cured within 15 days after written notice thereof given by Lessor,or,if such default shall be of such nature that it cannot be cured within such 15-day period,Lessee shall continuously proceed with diligence and in good faith to remedy such default. 12.INDEMNIFICATION BY LESSEE Lessee agrees to forever indemnify,defend,and hold harmless Lessor from all liability for damage to property or injury or death to persons,including all costs and expenses incident Utility MOA -Douglas Substation Upgrades December14,2016 Page 10 thereto,resulting from,or in any way related to,the actions of Lessee in connection with this Lease Agreement. 13.LIABILITY FOR NEGLIGENCE If Lessor pays a sum of money for property damage,personal injury,or any fee or penalty imposed by any governmental agency,resulting from the failure of Lessee to observe or perform any covenant of this Lease Agreement required to be performed by Lessee,then the sum so paid by Lessor,together with all costs,damages,and reasonable attorney's fees,shall be considered additional rent,due in the month succeeding such payment and collectable at such time. 14.EXPIRATION OF LEASE At the expiration date of this Lease Agreement,if Lessee carries over,said Lease Agreement shall continue on a day-to-day basis until anew Lease Agreement or a renewal of the existing Lease Agreement is signed. 15.SUBLEASING Lessee may not sublease or assign any portion of the Leased Premises. 16.NOTICES Any notice given under this Lease Agreement must be in writing and sent by registered mail to the last address of the party to whom the notice is to be given,as designated by such party in writing.Lessor hereby designates its address as:PO Box 2929,Palmer,AK 99645.Lessee hereby designates its address as:813 W.Northern Lights Blvd., Anchorage,AK 99503. IN WITNESS WHEREOF,the parties have executed this Lease Agreement on the day and year first above written. LESSOR: By: Title: LESSEE: By: Title: Utility MOA -Douglas Substation Upgrades December 14,2016 Page 11 APPENDIX C aeNOISSIINSNYSLLLNUAINDSAXSCTSNLLSICRfi|NOILIVENYLSIGINDUCTAtOVSONSITENOLMLVLSENSaivoONILSDOLN¥idA038WidenAVLORWSSPOON ALASKA INTERTIE MANAGEMENT COMMITTEE MEETING Wednesday,December 14,2016 -8:00 AM **PLEASE WRITE LEGIBLY*™ NAME Organization "irk GAG)MRE Gar Kun Yet B come Sopp Zl A CA Larry Somensen HEA Bab Deer Htea- Ker!LangtorL mV \an Y Over3 MEA ell bY 1 Led MiptPavictLoOcfeteAEAs)Dy tore 4 Siosrr Mer Dat il[lesp te.ART EC Mati 704074)CoysLEGTHOCHLherk- Cady Lister ASA David Pease.MER Pume Wick -CEA ALASKA INTERTIE MANAGEMENT COMMITTEE AGENDA WEDNESDAY,DECEMBER 14,2016 8:00 A.M. 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 --Oct.28,2016 7.NEW BUSINESS ELECTION OF OFFICERS SVC WARRANTY UPDATE GE DOUGLAS SUBSTATION UPDATE/POSSIBLE ACTION ITEM IOC RELIABILITY STANDARDS RECOMMENDATIONS IOC aSPOoFPALASKA AFFORDABLE ENERGY STRATEGY PRESENTATION AEA IOC /OPERATOR'S REPORT -ML&P/GVEA 9.COMMITTEE ASSIGNMENTS 10.NEXT MEETING DATE -TBD 11.ADJOURNMENT To participate via teleconference,dial 1-888-585-9008 and use conference room code 467-050-126 Intertie Management Committee Meeting -Alaska Online Public Notices Page 1 of 1 Intertie Management Committee Meeting ALASKA ENERGY AUTHORITY Annual Meeting Intertie Management Committee The Intertie Management Committee will hold a meeting on Thursday,December 22,2016 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 44.83.040(b)and 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 conference room 573-995-928. 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. Attach ments,History,Details Attachments Details IMC Agenda 12-22.pdf .Commerce,Community andDepartment:Economic Development Revision History Category:Public Notices Created 12/14/2016 2:52:21 PM by jstacruz Sub-Category: Modified 12/14/2016 2:53:57 PM by jstacruz Location(s):Statewide Project/Regulation #: Publish Date:12/14/2016 Archive Date:12/23/2016 Events/Deadlines: https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=1 8397 1 Iditeinnse Merritt : www.merrittresearch.com Research Services So :"Top10 Customers 2016. StC«dLSsSt Sales (MW)Revenues ($000)SO]OPNA)Blwy)°Max Debt Service ($000's):Max Debt Service Year:Resolution-Based Debt Srv Covg: Preparer Name/Title: Phone Number: Thank You! "Providing municipal credit related data since 1986” 319.861.5400 =877.861.MUNI +1212DinaCt +Hiawatha,IA 52233-4706 AGENDA |Project Identity Card Project Latest Sequence of Events Warranty Obligations Warranty Details Warranty Scope Global Information Support Services Details ALASKA KICK OFF MEETING October 2016 See tutorial regarding confidentiality disclosures.Delete if not needed. Project Description &involved GE ENERGY CONNECTION Entities Project Name:Alaska Intertie SVC Tower 195 Upgrade warranty Service Scope:Support services related to the refurbishment of 3 SVC's:power electronics,controls,MCC,cooling,relays Location:Anchorage,Alaska,USA Client:Alaska Energy Authority Contractor :NA Finance:Fully funded by the Municipality of Anchorage Contract/Selling Price:1,074,319 USD Warranty End Date:May 15th,2018 Contract Signed:1 Sept 16 Commencement:1 Sept 16 End Date :1 Sept 21 Leading GE ENERGY CONNECTION unit for warranty :PEP Leading GE ENERGY CONNECTION unit for Support Services :CSM \ \See tutorial regarding confidentiality disclosures.Delete if not needed. ALASKA KICK OFF MEETING October 2016 -Warranty Flow Chart Process 24/7 ACCESS LINE :PHONE NUMBER 1-866-837-7170 'Warranty Period CSM (Service)/PEP (Facts)chartflow oe = f requestfromS|cme Warranty End date May 716yh 2018 }call 1-800 >Correctwe work}|sIecidertcarriedoutrepert Corrective work||;---_carriedoutSERVICE-CANADAYes A No CSM Eng takesfromCSM= the lead of the Engineer request PEP project Corrective work incident manager Is '|earrledout |report Informed Please send log files to julien.j nicolas@qGe@'CO ana'"or Peetenetneeces aAlAvanarn IARKKAAN\AAN ARAM©PEP-PHILADELPHIA Global Information The offer has been built in order to have flexibility and is only restricted to equipment installed by PEP (see next slide) Services Total 5 years 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 yr 1 4,519 Training yr 5 4,519 Health assessment 23,744 Strategic Parts 701,444 Title or Job Number |XX Month 201X See tutorial regarding confidentiality disclosures.Delete if not needed. Equipment Concerned ¢Thyristor Valve ¢Control System ¢MCC =Motor Control Center ¢Protection Cabinets MV ¢Protection Cabinets HV ¢SEL 487v capacitor protection with S &C Bank Guard relay protection ¢Teeland Specific =HVAC unit and Battery Room fan Note :GE intervention is strictly restricted to those equpiment Title or Job Number |XX Month 201X See tutorial regarding confidentiality disclosures.Delete if not needed. CONTACTS 24/7 ACCESS LINE :PHONE NUMBER 1-866-837-7170 dial#2 All technical request must go through this line and it will be dispatched accordingly CSM :Support Services Project Manager :Julien NICOLAS Email :julien.j.nicolas@ge.com -Phone :+1 514-213-8353 Chief Engineering :Pierre De La Borderie Email :pierre.de-la-borderie@ge.com -Phone :+1 514-347-5795 PEP :Warranty Project Manager :Palak SINGHEE Email :palak.singhee@qe.com -Phone :+1 484-550-2724 Title or Job Number |XX Month 201X See tutorial regarding confidentiality disclosures.Delete if not needed. Client Contacts Client contacts: Teeland Contact:ML&P 24/7 Dispatch Center @ 907-263-5458 or 907-263-5457 Gold Hill Contact:GVEA 24/7 Dispatch Center @ 907-452-1151 or 907-457-1006 Healy Contact:|GVEA 24/7Dispatch Center @ 907-452-1151 or 907-457-1006 Main office Contacts:David Lockard Tel:907-771-3062 (office)/907-444-5326 (cell) Email:dlockard@AIDEA.org Title or Job Number |XX Month 201X See tutorial regarding confidentiality disclosures.Delete if not needed. 24/7 Line Support 24/7 ACCESS LINE :PHONE NUMBER 1-866-837-7170 dial#2 GE will support for any request. Information required for a call : LY Contact information of caller,reason for call O)Date and time of call if answer machine (we will call within 2hours) UO Failed equipment ID number/Part number and/or the alarm name Note :Please send log files to julien.j.nicolas@ge.com and arTitleorJobNumber |XX Month 201X , See tutorial regarding confidentiality disclosures.Delete if not needed. Technical Support Phone Support :(213 hours) L All requests must go through the 24/7 access line LI]Scope :Alarm support,remote troubleshooting LJ Requested data :Log files for analysis Field support :One trip of 2 days at site per year for five year A cost summarry of actual hours site hours and expenses will be send (timesheet will need to be signed by AEA for site activities). L)AEA has the possibility to go through an out of scope to keep their budget for emergency request Title or Job Number |XX Month 201X See tutorial regarding confidentiality disclosures.Delete if not needed. Field Support Budget :One trip of 2 days at site per year for five year (flexible):66,645 USD CL)A cost summarry of actual hours site hours and expenses will be send (timesheet will need to be signed by AEA for site activities). QO)AEA has the possibility to go through an out of scope to keep their budget for emergency request Title or Job Number |XX Month 201X See tutorial regarding confidentiality disctosures.Delete if not needed. - 10 Maintenance AEA Responsability 1)De-energization and grounding of equipment to be maintained L]Re-energization of the SVC (]Maintenance on other civil installations L]Maintenance of non-Alstom Grid provided equipment LI Any spare parts that might be required for replacement of failed parts LI Execution of repairs identified during preventive maintenance Title or Job Number |XX Month 201X See tutorial regarding confidentiality disclosures.Delete if not needed.11 Maintenance -Minor Maintenance 2017 -Major Maintenance 2021 L)Scope details into maintenance plan LJ Outage duration per site required :2 days UW Testing equipment included L]Maintenance report L)AEA yearly outage schedule to be shared (April 17th to April 22nd) Title or Job Number |XX Month 201X See tutorial regarding confidentiality disclosures.Delete if not needed. Health Assessment 2019 AEA Scope : LO)Provide log files on all events occured during the year LJ Provide Maintenance report QO)Summary of spare replaced UI Spare parts inventory with purchased date GE Scope : , LI Spare parts recommendation LI Obsolescence status LI Condition based maintenance recommendation Title or Job Number [|XX Month 201X See tutorial regarding confidentiality disclosures.Delete if not needed. Training 2017 &2021 Training will happen prior maintenance : -SVC description of each element and its components:4 h at site , -SVC operation principle :4 h at site Title or Job Number|XX Month 201X See tutorial regarding confidentiality disclosures.Delete if not needed. Title or Job Number |XX Month 201X Qé&A See tutorial regarding confidentiality disclosures.Delete if not needed.15 He)Phoone onds yet-ne agreement YerWahaguaee.-no police force On foreRRteRBCarplianteUNHCRgh poseableenSoroat"Tony--Honey)ot Meds (%Titel subCow Seat (ecornerdatinWw onto;what enfircera oust Share Sts eo ew service Chovaye (Ret cary already)ceoonbare,.RCA Shing Gergruhon tens Mission)duce 1%aye by ublikes Rel duction uahlvetupteleytodeadeWhat"cost eave «>definedrpaebetweenO£rural.|Xn acou sable:Pb ubliies rot includedWORZuppoctForAERtodusalveadjournedAUT ee LuhlsehRESMacken,u>KKna Kathe bath lusts Ne)DD)Pode Creek nf eanly Jan Vance Carn Sper why.ial RFP corte WHA guidanewepomvylzlzornamentCommuteewesSsubudinyFPila,ques REN.proc nomenAGVISOTYCapacityAdsourry407})& 9@:30-60 Aedtéa 1U 22 4B lo Po \\S dE shoo HEwv Rohe pdomneys To review -porrore Cory Meter)12122..Byelldy yroevlnutalensinrd),(good dey.Ton Keland Dosglas "2017 UALK indeteeOct2H3DssUtilityMemorandumofAgreement(MOA) 2016 DOUGLAS SUBSTATION UPGRADES December 14,2016 THIS AGREEMENT is between the ALASKA ENERGY AUTHORITY ("AEA”)and MATANUSKA ELECTRIC ASSOCIATION,INC.("MEA”),and the Intertie Management Committee ("IMC”)on behalf of the Railbelt Utilities for a required upgrade of components at the Douglas Substation in Willow,AK.The upgrades include a procurement and installation of Control Enclosure (See Appendix A)and related work to be completed under the Agreement (Project). WITNESSETH: WHEREAS,in the 1984 Agreement,MEA allowed AEA to design and construct certain additions and modifications to the Douglas Substation in order to implement the Anchorage- Fairbanks Intertie Project ("Alaska Intertie'),and some of those components now need replacement at the Douglas Substation;and WHEREAS,the additions and modifications to the Douglas Substation contemplated as part of the "Project”addressed in these documents are contemplated to provide continuous operations for the benefit of the Alaska Intertie;and WHEREAS,the Alaska Intertie Agreement was amended and restated dated November 11,2011 (Amended Alaska Intertie Agreement),including to establish the IMC and to provide the IMC with certain management duties and authorities over the Alaska Intertie;and WHEREAS,Section 6.4 of the Amended Alaska Intertie Agreement provides for the IMC to approve certain modifications,additions,deletions,and changes to the Alaska Intertie ('Improvements');and WHEREAS,the IMC has determined that the Douglas Substation must have certain upgrades and modifications made to it in order to insure continued safe,reliable,and economical operation of the Alaska Intertie;and WHEREAS,the project engineer,Engineered Power Systems,Inc.(EPS),has determined that there are significant technical and safety concerns with the existing Control Enclosure to warrant replacement;and WHEREAS,MEA owns and operates three distribution feeders at Douglas Substation and is willing to offset approximately 30%of the costs for the new Control!Enclosure to provide for new distribution relaying at Douglas Substation;and WHEREAS,AEA agrees that replacement of the Control Enclosure and related project costs are required for the Alaska Intertie on behalf of the IMC and agree to contribute funds for the replacement Control Enclosure;and Utility MOA -Douglas Substation Upgrades December 14,2016 Page 2 WHEREAS,this Project is an upgrade of existing facilities only,the construction and installation of the Control Enclosure does not in any way alter the ownership,operation,or maintenance responsibilities as they existed prior to the Project;and WHEREAS,MEA will lease to AEA a portion of the Douglas Substation,the size of the footprint of the relay Control Enclosure,for an annual fee of $1.00 (one-dollar)per year,for 45 years subject to:if the property ceases to be used by AEA during that time period,the leased property and all equipment thereon shall return to the sole control and ownership of MEA;at the end of the lease,MEA may elect to continue the lease in 5-year increments for up to an additional 10 years at its sole discretion;and WHEREAS,based on the consultant's cost estimate for the Douglas Substation Control Enclosure replacement and the Intertie Operating Committee (IOC -a subcommittee of the IMC) discussions of the project,the IOC has proposed and IMC accepted that project costs be split approximately 70/30 between AEA,owner of the Alaska Intertie,and MEA,owner of the associated distribution gear to be upgraded and/or replaced;and WHEREAS,based on MEA's Douglas Substation project engineer's cost estimate for the Douglas Substation Control Enclosure replacement,and the recommendation of the Intertie Operating Committee,the agreed upon allocation of Project costs can be accomplished by AEA, on behalf of the IMC,procuring the Control Enclosure;and MEA providing the design, engineering,installation,and commissioning of the Control Enclosure,and acting as the Project Manager (PM)for the Douglas Substation upgrade project,including the Control Enclosure commissioning.The respective tasks of AEA and MEA being further described in Appendix A; and WHEREAS,AEA has authorized funding to procure the Control Enclosure as an Intertie Cost from an appropriation made in sec.78(c),ch.1,SSSLA 2002 as re-appropriated in sec.69, ch.29,SLA 2008,with additional funding,if any,limited to additional amounts allocated by AEA from an appropriation or approved by the IMC and assessed to the Alaska Intertie users;and NOW,THEREFORE,it is agreed as follows: ARTICLE | Section 1.The construction contracts and all other maps,drawings,plans and specifications,contract forms,addenda,estimates,studies and other documents to be prepared shall conform to the applicable standard specifications and all applicable IMC utility practices and industry standards. Phone pees - Vaa:Yo Gillespie -ARCTEC ATTENDANCE- COMMITTEE MEMBERSSf.Brian Hickey (vice chair)-!4 Mark Johnston (chair)a Kirk Warren,Secretary/TrreasureraCoryBorgeson _Tony Izzo "Public Members7BernieSmithBobDay-HEA David Pease -MEA ©bo_Karen Bretz --MLP IMC December 14,2016,8:000 amALTERNATE - :Burke Wick :Jeff Warner Allen Gray _Gary Kuhn COUNSELar:Kirk Gibson,McDowell Rackner &Gibson PC SY |Brian Bjorkquist,Dept.of Law _ _Dave Burlingame --EPSEdJenkin-MEA 9. 10. 11, ALASKA INTERTIE MANAGEMENT COMMITTEE AGENDA WEDNESDAY,DECEMBER 14,2016 8:00 A.M. Alaska Energy Authority,Board Room 813 W.Northern Lights Boulevard,Anchorage,Alaska CALL TO ORDER ROLL CALL FOR COMMITTEE MEMBERS PUBLIC ROLL CALL AGENDA APPROVAL PUBLIC COMMENTS APPROVAL OF PRIOR MINUTES -Oct.28,2016 NEW BUSINESSA.ELECTION OF OFFICERS -THO Same slate B.SVCWARRANTY UPDATE -dulien Nicholas GE C.|DOUGLAS SUBSTATION UPDATE/POSSIBLE ACTION ITEM IOC -cay D.RELIABILITY STANDARDS RECOMMENDATIONS IOC -PBuxvre wick E.ALASKA AFFORDABLE ENERGY STRATEGY PRESENTATION AEA -edLister IOC /OPERATOR'S REPORT -ML&P/GVEA COMMITTEE ASSIGNMENTS PS\N2 ev\foranment nueasubs NEXT MEETING DATE -TBD ADJOURNMENT = (34 a.m To participate via teleconference,dial 1-888-585-9008 and use conference room code 467-050-126 ZoTY a TeriS PIN Subject:FW:Reliability Standards recommendations Attachments:AKBAL-001_Final.docx;AKBAL-002_Final.docx;AKBAL-003_Final.docx;AKBAL-005 _Final.docx;AKBAL-502-0_Final.docx;AKMOD-025-2_Final.docx;AAMOD-026-1 _Final.docx;AAMOD-027-1_Final.docx;AKMOD-028 _Final.docx;AAMOD-032-1 _Final.docx;AKMOD-033-1_Final.docx;AKPRC-006_Final.docx;AKTPL-001-4_Final.docx From:Teri Webster Sent:Wednesday,December 07,2016 3:48 PM Subject:Reliability Standards recommendations The IOC has completed their current review of the IMC Standards and the attached reflect the recommended revised Standards.It should be noted that there are references in the standards to entities with Authority to enforce the Standards that don't currently exist. Attached you will find the following:AuRWNPAKBAL-001 Real Power Balancing Control Performance AKBAL-002 Disturbance Control Performance AKBAL-003 Frequency Response and Bias AKBAL-005 Automatic Generation Control AKBAL-502-0 Planning Resource Adequacy Analysis,Assessment and Documentation AKMOD-025-2 Verification and Data Reporting of Generator Real and Reactive Power Capability and Synchronous Condenser Reactive Power Capability AKMOD-026-1 Verification of Models and Data for Generator Excitation Control System or Plant Volt/Var Control Functions AKMOD-027-1 Verification of Models and Data for Turbine/Governor and Load Control or Active Power/Frequency Control Functions AKMOD-028 _Total Transfer Capability .AKMOD-032-1 Data for Power System Modeling and Analysis .AKMOD-033-1 Steady-State and Dynamic System Model Validation .AKPRC-006 Automatic Underfrequency Load Shedding .AKTPL-001-4 =Transmission Planning Performance Requirements This topic will be covered at the IMC meeting Dec 14.Please print out your own copies if you wish to have them at the meeting. Thank you, Teri Webster AEA Executive Assistant 813 W Northern Lights Boulevard,Anchorage AK 99503 (907)771-3074 Ls Subject:FW:Update on FERC Land Fees From:Bjorkquist,Brian D (LAW)[mailto:brian.bjorkquist @alaska.gov] Sent:Monday,December 12,2016 10:24 AM To:Teri Webster <twebster@aidea.org>;Bryan Carey <bcarey@aidea.org>;Wick,Burke <burke_wick@chugachelectric.com>;Owens,Connie <connie_owens@chugachelectric.com>;Cory Borgeson <cborgeson@gvea.com>;Dawn M.Baham <Dawn.Baham@mea.coop>;Day,Bob <bday@homerelectric.com>;Gary Kuhn <gary.kuhn@mea.coop>;Heather Smith <hsmith@homerelectric.com>;Janorschke,Brad <bjanorschke@homerelectric.com>;Jeff Estes <jestes@cityofseward.net>;Jeff Warner <Warnerja@muni.org>;Foutz,John <jfoutz@cityofseward.net>;Kirk Gibson <Kirk@mcd-law.com>;Thibert,Lee <lee_thibert@chugachelectric.com>;Davidovics,Linda <davidovicslr@muni.org>;Lynn Thompson (Inthompson@gvea.com)<Inthompson@gvea.com>;Mark Johnston -MLP <johnstonma@muni.org>;Michael E.Lamb <mlamb@aidea.org>;Susan Redlin <skr@gvea.com>;Tony Izzo <tony.izzo@mea.coop> Subject:RE:Update on FERC Land Fees Greetings, An update to the information from Bryan. A new invoice and one previously overlooked raised the total amount Van Ness Feldman (VNF)has billed BPMC to $15,357.28,or $357.28 over the budgeted amount.If BPMC desires to pursue the petition as VNF recommends,the budget increase would need to cover the $357.28 over-budget amount plus the approximate $4,000 additional cost estimate. Please let me know if you have any questions,including if you want additional information from VNF. Brian Bjorkquist Senior Assistant Attorney General (907)269-5150 -direct From:Teri Webster [mailto:twebster@aidea.org] Sent:Thursday,December 08,2016 4:23 PM To:Bjorkquist,Brian D (LAW);Carey,Bryan E (AIDEA);Wick,Burke;Owens,Connie;Cory Borgeson;Dawn M.Baham;Day,Bob;Gary Kuhn;Heather Smith;Janorschke,Brad;Jeff Estes;Jeff Warner;Foutz,John;Kirk Gibson;Thibert,Lee;Davidovics,Linda;Lynn Thompson (mailto:Inthompson@gvea.com);Mark Johnston - MLP;Lamb,Michael E (AIDEA);Susan Redlin;Tony Izzo Subject:Update on FERC Land Fees Sent on behalf of Bryan Carey AEA received the below information from Van Ness Feldman (VNF),attorneys who have represented the BPMC and other Alaska hydroelectric project owners in challenging FERC's federal land fees.As you will recall, those federal land fees increased by 71%from 2015 to 2016.The increased fees will apply through 2020.The Alaska Group appealed the 2016 fees and petitioned for rulemaking to change the land fee rules for Alaska. In short,VNF reports that FERC (1)denied the appeal of the 2016 fees,but (2)invited the Alaska Group to further pursue the petition,asking some specific questions regarding the petition.VNF recommends that the Alaska Group further pursue the petition,but not the appeal. The question is whether BPMC desires to further pursue the petition,and not pursue the appeal.As AEA reported earlier,BPMC can benefit from the federal land fee decision,both for impact on fees charged for 1 Bradley Lake and for fees to be charged on hydro projects developed in the future.As to Bradley Lake,the state continues to pursue acquisition of federal land used within the project.It remains uncertain if and when the state will obtain those federal lands.Once acquired,no further federal land fees would be owed for the Bradley Lake project. VNF estimates pursuing the petition will cost approximately $10,000.The attorney fees have been divided based upon the size of each hydroelectric project.BPMC has paid 38.70%of all fees,or $3,870 of the estimated cost.The BPMC previously budgeted $15,000 for this effort.VNF has charged BPMC approximately $12,000 for BPMC's share of VNF's efforts. Please let us know if you support the recommendation from VNF,and adding $2,000 to the budget to cover the anticipated expenses,with a cushion. This will be added to the BPMC agenda for Dec 14. Bryan Carey,P.E. AEA &AIDEA (907)771-3065 Members of the Alaska FERC Land Fees Group: In its monthly public meeting today,FERC ruled on our pending rehearing request that challenged the significant increase in the 2016 federal land fees bills,as well as our petition that FERC initiate a rulemaking to address the structural problems in its annual charges calculation methodology,to prevent this same problem from occurring in future years.The results of FERC's two issuances today,both of which are attached to this email message,are mixed.While FERC rejected our rehearing request,it responded favorably to our rulemaking petition and issued a Notice of Inquiry to look into this issue in more detail. First,the bad news.In the attached order,FERC denied our rehearing request of FERC staffs decision to reject our appeal of the 2016 federal land fees bills.FERC's order recognizes the steep percent increase of federal land fees,but holds that the fees are reasonable.FERC found that an annual charge of $56.78 per acre is not "unreasonable on its face,”(Paragraph 15),and it found that the increase in annual charge per kWh generated was quite small (Paragraph 16,footnote 33). Because FERC has now issueda final order that denies our appeal of the 2016 federal land fees bills,groupmembersneedtodecidewhethertocontinuetopursuethisappealofannualchargestotheU.S.court of appeals.The Federal Power Act requires any challenge to a FERC order to be filed within 60 days,and we would be happy to convene a conference call if group members would like to consider this opportunity.Candidly,court challenges can be very expensive,and the standard of review is deferential to FERC's decision making.While we certainly disagree with FERC's analysis,we think that our chance of success on appeal would be low,and the cost of pursuing an appeal could exceed the total amount of annual charges payments that are contested in this case.So,while we'd certainly welcome a conversation among the group about pros and cons of taking an appeal,unless the group feels differently we do not recommend filing a petition for review with the court in response to FERC's rehearing order.Unless any group member communicates otherwise,we will assume that the group agrees with our recommendation not to proceed further with this appeal. Second,the good news.While FERC denied rehearing of our appeal for 2016,it signaled its willingness to explore possible changes to its current annual charges methodology that could resolve the group's concerns in future years'annual charges billings.In the attached Notice of Inquiry,FERC is seeking comment "on a narrow question -whether regional per-acre land values based on data published in the NASS Census result in reasonably accurate land valuations for hydropower lands in Alaska”(Paragraph 2).Specifically,FERC is seeking guidance on the following questions (see Paragraph 16): °For the purposes of calculating an adjusted per-acre value for lands in Alaska,should the Commissionuseastatewideaverageper-acre land value rather than a regional per-acre land value? °If a statewide average per-acre value is preferred,should the statewide value be applied to (i)all projects in Alaska,or (ii)all projects in Alaska except those located in the Aleutian Islands Area? °Which of the five geographic regions of Alaska (the Aleutian Islands Area,the Anchorage Area,the Fairbanks Area,the Juneau Area,and the Kenai Peninsula Area)should be included in the calculation of the adjusted statewide average? Comments in response to FERC's Notice of Inquiry are due within 60 days (after it is published in the Federal Register). While we are frustrated that FERC decided against granting our appeal,we are very encouraged by its issuance of this Notice of Inquiry.FERC could have ignored our petition for rulemaking filed a few months ago,or dismissed it altogether on the same basis that it denied our annual charges appeal.Instead,FERC signaled that it wants to be sure that its annual charges methodology produces a fair result on an annual basis and that it is open to refinements to ensure that result on a going-forward basis.As FERC Commissioner Collette Honorable commented in today's meeting: "I know a number of parties are concerned whether our existing method is working as it should in Alaska in particular.I want to thank the power licensees that petitioned for further examination,and I agree that it's always healthy for us to examine our own work and improve it where it is needed to respond to changes that are occurring in the industry.I certainly realize that Alaska is unique and poses challenges to reasonable fees, and I think this Notice of Inquiry acknowledges we believe that one size does not fit all.We have to take the consumers into account and also the taxpayers who own the land,and I believe we need to arrive at a formula that is not only manageable but consistently produces fair results.So,I encourage anyone with ideas about the best way to go about that to chime in.” So,while we do not recommend pursuing an appeal of FERC's rehearing order,we strongly recommend that the group file comments in response to the Notice of Inquiry.Since our previous rulemaking petition covers the issues posed in FERC's Notice of Inquiry (and summarized above),the legal costs for preparing a comment for the group would be minimal,and any decision by FERC to change its methods to adopt our recommendations would result in lower annual charges each year on a going-forward basis. In summary,in response to FERC's issuances today,we recommend that the group: 1.Not pursue the 2016 annual charges appeal to the U.S.court of appeals;and2.Authorize us to adapt our prior rulemaking petition to a comment to FERC in response to its Notice of Inquiry. We would ask that group members please respond to this email by letting us know whether you agree with these recommendations.If group members have any questions with the FERC orders issued today or these recommendations,we certainly could schedule a conference call to discuss these issues in more detail.But if the group agrees with these recommendations we can quickly begin to move forward with the next steps. Thanks everyone.I apologize for the lengthy email today.As always,please let me know if you have any questions or concerns. Best regards, Chuck Charles R.Sensiba |Partner Van Ness Feldman LLP Intertie Management Committee Regular meeting MEETING MINUTES Friday,October 28,2016 Anchorage,Alaska 1.CALL TO ORDER Vice Chair Brian Hickey called the meeting of the Intertie Management Committee to order on October 28,2016 at 9:30 a.m.A quorum was established. 2.ROLL CALL FOR COMMITTEE MEMBERS Brian Hickey _Chugach Electric Association (CEA)_ Dan Bishop Golden Valley Electric Association (GVEA) Tony Izzo Matanuska Electric Association (MEA)Kirk Warren Alaska Energy Authority (AEA)** Jeff Warner Anchorage Municipal Light &Power (ML&P) 3.PUBLIC ROLL CALL Gary Kuhn,Jim Brooks,David Pease (MEA);Burke Wick,Lee Thibert (CEA);MaryLynnMacsalkapeiceSethofLaw);Kirk Gibson (McDowellRackner &Gibson PC),Ken Langford Warner.The motion passed 'unanimously. 7.NEW BUSINESS 7A.SVC Warranty Update The update was to be given by GE and they were not able to call in. MOTION:Mr.Izzo made a motion to put off this agenda item until the next meeting. Motion seconded by Mr.Warren. ie ae a a Subject:Project #1457 Kake Bulk Fuel Storage Attachments:Signed Kake Letter.pdf From:Katie Conway Sent:Thursday,August 25,2016 3:38 PM To:Peter Fellman <Peter.Fellman@akleg.gov> Cc:Peterson,Darwin R (GOV)(darwin.peterson@alaska.gov)<darwin.peterson@alaska.gov>;Sen.Click Bishop <Sen.Click.Bishop@akleg.gov>;'Fowler,Micaela R (CED)'<micaela.fowler@alaska.gov>;Michael E.Lamb <mlamb@aidea.org>;Sean Skaling <sskaling@aidea.org>;Tom Erickson <terickson@aidea.org> Subject:RE:Project #1457 Kake Bulk Fuel Storage Hi Pete, Please see the attached letter regarding the Kake bulk fuel storage project and contractor selection process.We'd be more than happy to answer any questions you or the Senator might have. Thank you, Katie Katie Conway Government Relations,Outreach &Efficiency Manager Alaska Energy Authority 813 W.Northern Lights Blvd. Anchorage,AK 99508 907-771-3078 kconway@aidea.org From:Peter Fellman [mailto:Peter.Fellman@akleggov] Sent:Thursday,August 25,2016 11:34 AM To:Michael E.Lamb <mlamb@aidea.org>;Katie Conway <kconway@aidea.org>;Sean Skaling <sskaling@aidea.org>; Tom Erickson <terickson@aidea.org> Cc:Peterson,Darwin R (GOV)(darwin.peterson@alaska.gov)<darwin.peterson@alaska.gov>;Sen.Click Bishop <Sen.Click.Bishop@akleg.gov> Subject:Project #1457 Kake Bulk Fuel Storage Senator Bishop has been concerned with some of the practices and policies of AEA for some time but this last RFP for the Kake bulk fuel storage has him alarmed.Please provide as much detail as possible regarding the choice of Dawson Construction LLC over STG Inc.It is our understanding that Dawson got 671 points and STG got 750.... Thank you Pete Fellman Chief of Staff for Senator Click Bishop Office 907-465-3613 Cell 907-987-5410 October 28,2016 IMC Meeting Minutes Page 2 of 2 7B.Reliability &Operating Standards Update The IOC continues to work on the Operating Standards.An estimated three meetings will be held to get through it.Comments are due back to EPS on the standards next Thursday,two weeks following the last meeting.They are breaking out the technical aspect of the spin requirements. All the representatives on the IOC have the latest documents and are encouraged to share the documents with their IMC representatives.All comments will be incorporated whether or not they are on the IMC. 8.INTERTIE OPERATING COMMITTEE REPORT /OPERATORS REPORT There were no reports. 9 Douglas Substation Upgrades Mr.Kuhn provided a project summary update.Tt continue to mak progress and havecompletedtheprocurementpacketforthecontrolenclosureandthepacketiiswithAEAnow. Cost overruns for the project could beoondepartmentwilllookfurtherintothis.-with a.70/30saith AEA's procurement 94.COMMITTEE ASSIGNMENTS AEA to review the cost overrun allocation. Mark Johnston,Chairman Kirk Warren,Secretary AEA Handouts .Five year RPSU &BFU Summarized Expenditure chart .Policies AEA/AIDEA Procurement follows .AEA Board presentation on Emergency Response and Preventative Maintenance 10-27-16 IC 47_S .Kake's RPSU &BFU project cost &schedule impact scenarios from HDL 11-12-15 .Kake's scoring procurement letter 8-25-16 .Perryville RPSU project costs &schedule impact scenarios from HDL 10-21-15 .Response letter to Senate Finance Committee questions on AEA 3-23-16 Intertie Management Committee Meeting -Alaska Online Public Notices Page 1 of 1 STATUS:Active Intertie Management Committee Meeting ALASKA ENERGY AUTHORITY Annual Meeting Intertie Management Committee The Intertie Management Committee will hold a meeting on Friday,December 2,2016 at 9:00 a.m.For additional information contact Teri Webster at (907)771-3074. This meeting will be conducted by electronic media pursuant to AS 44.83.040(b)and 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 conference room 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 IMC Agenda 1 2-2.pdf Commerce,Community andDepartment:Economic Development Revision History Category:Public Notices Created 11/22/2016 11:01:59 AM by tawebster Sub-Category:Advisory Committee Meeting Location(s):Statewide Project/Regulation #: Publish Date:11/22/2016 Archive Date:12/4/2016 Events/Deadlines: https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=1 83678 11/22/2016 March 23,2016 The Honorable Pete Kelly The Honorable Anna MacKinnon Senate Finance Committee Co-Chair Senate Finance Committee Co-Chair State Capitol,Room 518 State Capitol,Room 516 Juneau,AK 99801 Juneau,AK 99801 Subject:Senate Finance Committee March 16 follow-up Dear Senators Kelly and MacKinnon: Thank you for the opportunity to provide additional information about the Alaska Energy Authority,as part of the presentations on Alaska's Enterprise Agencies on Wednesday,March 16,2016.AEA serves a public purpose in delivering and supporting affordable energy to Alaskans. Senator MacKinnon requested that we provide a written response to the 12 questions submitted by the Senate Finance Committee.We also provided responses to questions asked during the presentation. 1,What is your strategic vision?What value does your Agency provide the state of Alaska? During the fall 2015,AEA initiated a strategic planning and vision process that included members of AEA's management team,AIDEA/AEA shared services and program manager staff.During this process we sought to clearly define our core strengths and values in order to focus on AEA's unique strengths and value to the state with the following outcomes: Purpose:to develop and deliver optimal energy solutions for Alaska's communities. Mission:to reduce the cost of energy for Alaskans Core Values: e Respectful-demonstrating high regard for communities,integrating local perspectives e Responsible-being prudent and ethical stewards of Alaskans'resources e Innovative-seeking new ideas and methods and adapting to changing conditions e Passionate-enthusiasm for and commitment to our work team and improvement Our Vision: e We will champion projects and policies to achieve the state renewable and efficiency goals e We will invest in innovative solutions ¢We will promote understanding of energy cost impacts upon economic development,sustainability and quality of life e We will provide leadership to achieve consensus on energy cost solutions Stretch Goal:By 2030 there is energy cost parity across Alaska AEA provides value to the state through stabilizing and lowing energy costs by investing in energy infrastructure, diversifying Alaska's energy portfolio,training and community assistance and strategic energy planning. 2.When was the Agency created,and how much state funds were invested? AEA was created in 1976 as a public corporation of the state of Alaska.Under AS 44.83.070,"The purpose of the Authority is to promote,develop and advance the general prosperity and economic welfare of the people of the state by providing a means of financing and operating power projects and facilities that recover and use waste energy and by carrying out the powers and duties assigned to it under AS 42.25.The initial funds appropriated to AEA (formally Alaska Power Authority)is unknown. akenergyauthorityiotg! 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 Intertie Management Committee Meeting -Alaska Online Public Notices Page 1 of 1 Intertie Management Committee Meeting ALASKA ENERGY AUTHORITY Annual Meeting Intertie Management Committee The Intertie Management Committee will hold a meeting on Wednesday,December 14,2016 at 8:00 a.m.For additional information contact Teri Webster at (907)771-3074. This meeting will be conducted by electronic media pursuant to AS 44.83.040(b)and 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 conference room 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 IMC Agenda 12-14.pdf Department:Commerce,Community andEconomicDevelopment Revision History Category:Public Notices Created 12/6/2016 11:11:25 AM by jstacruz Sub-Category: Modified 12/7/2016 3:39:37 PM by jstacruz Location(s):Statewide Modified 12/7/2016 3:43:13 PM byjstacruz Project/Regulation #: Publish Date:12/6/2016 Archive Date:12/15/2016 Events/Deadlines: https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=1 83819 12/8/2016 Mr.Alan Fetters Project Manager,AEA November 16,2015 Page 13 e OnSite Construction by Contractor,including: o\General Contractor Civil Work: *Procurement of all site work related constructiorf materials. «Delivery of module,materials,equipment tos e.»Installation of foundation,decks,boardwalks. «Installation of module on foundation. Installation of module roof system. Installation and connection of tie-i ystem. stallation and connection of heat recovery piping tie-ins to existing o existing electrical distribution *«System start up. system.VA.Installation and vw n of fuel piping tie-ins to existing system.Basically,the construction cost difference betwéen Scenario 2 and Scenario 3 is Contractor mark-up on a sub-contractor who completes he pea construction.The entire HMS cost estimate for Scenario 3 is attached as Appendix C for reference. B.Design/Construction Administration Costs: Unlike the first two Scenarios,the design of the module is not separated from the rest of the work, so the design process would,be consolidated into a singular product.Also,as the entire project would be constructed undey'a "traditional”single contract bid,the design would be at a high level of detail,and with specifi Oversite of all the work,which assumes in-plant construction of the module,then site work,will be in the form Ws ections by AEA and /orc ee engineers,very similar to Scenario 2.As with Scenario 2,overall CA costs for this ethod of construction will drop as all of theprocurementahddirectoversitewillgoaway.However,there will be additional inspections during module andsite construction that will bring the costs closer to Scenario 1.(It is also anticipated that AEA will need to be very involved in the startup and commissioning of the module-both in¢plant and onsite -so these costs will not go down to any great degree). As with Scenario 2,design costs are likely to go up due fo the increased level of design required.However,these costs will be offset to some degree due to no longer having to put togetherprocurementpackagesforOwnerpurchasedandinstalleditems.Costs would also go downSlightlyfromScenario2asthisScenariowouldonlyhavenebidpackageandprocess. C.Overall Project Schedule: Unlike the first two Scenarios,the design of the module is not separated from the rest of the work, so the entire design must be completed on a schedule that allows for module construction to begin 9 months prior to the fall barge departure.Therefore,the deSign process itself would need to begin at least a month earlier than the other Scenarios in order to be completed on time. \ CIITA2CNN NID +»)RSIAIMEMBEREOTEHEaKPEAGV)KENUPSALECO REO RAITLO NECA MILYE)ECL MPAN TEs