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HomeMy WebLinkAboutSE Intertie Resolutions 2003RESOLUTIONS Supporting the work of the Southeast Conference Intertie Committee and the Southeast Alaska Intertie Project FEB-18-03 00:18 From:T&H REG ELECT.G077908517 T-305 P.02/02 Job-618 eLeofHoSM"-, 2 CITY OF HOONAH =P.O.Box 360 =Hoonah,Alaska 99824 .(907)045-8663 .FAX (907)945-3445 J.RESOLUTION No.03-02-17"'''Toeapguae! A Resolution Supporting the Southeast Alaska Jotertie Project and the Intertie Work of Southeast Conference WHEREAS,Southeast Alaska is the only place in the United States with a population its sizethatisnotinterconnectedbyanelectricalintertiesystem;and WHEREAS,the lack of interconnection increases power costs to more than four (4)times thenationalaverageinsomecommunities;and, WHEREAS,the communities of Southeast Alaska need reliable,cost effective,long-term sources of energy for the future in order to minimize environmental impacts,stabilize electric rates,foster employment,and increase economic developmentopportunities;and WHEREAS,the Alaska Congressional Delegation was successful in passing legislationauthonzingtheSoutheaetAlaskaIntertieProjectwithFederalappropriationsofupto$384mulliondollarsfortheproject;and WHEREAS,Southeast Conference hired an intertie coordinator to work on intertieissuesfulltime;and WHEREAS,Southeast Conference unanimously approved the Juneau/Hoonah andKake/Petersburg Intertie legs as priorities and coromissioned a comprehensiveengineering/economic analysis of the Southeast Alaska Intertie Project;and WHEREAS,it is vital that progress continues to be made on completing the region-widegoalofinterconnectingallofSoutheastAlaskawithatransmissionlinesystem. NOW,THEREFORE BE IT RESOLVED,that the City of Hoonah,Alaska supportstheeffortsofSoutheastConferencetoidentifyfundingandproceedwithplanningandconstructionontheSauthcastAlaskaIntertieProjectinordertopravidesteadyaffordablepowerforSoutheastresidents,and reduce the dependence on expensive diese]generatorsbyourruralcommunities. PASSED AND APPROVED this //day of,Sa aA 2003. By a vote of ayes,Q nays; ATTEST: Organized Village of Kake P.O.Box 316 Kake,Alaska 99830-0316 Telephone 907-785-6471 Fax 907-785-4902 /email KeexKwaan@starband.net (Federally Recognized Tribal Government serving the Kake,Alaska area) Resolution No.2002-22 -Support of Electrical Intertie &Proposed Collaborative Implementation WHEREAS,|the Organized Village of Kake (hereinafter OVK)is a duly constituted Indian Tribe organized pursuant to the authority of the Federal Indian Reorganization Acts (hereinafter IRA)of 1934 &1936 with the IRA Council as the duly elected governing body formed under its Constitution &By-Laws;and, WHEREAS,_the IRA Council has responsibilities to its Tribal Citizens (population of 600 residing in the Kake area)that include,among others,powers of authority to "protect the general welfare and security of the Village”as put forth within the OVK Constitution &By-Laws;and, WHEREAS,_the cost of electricity in Kake is inordinately high in relationship to other areas,with rates in the range of mid-thirty cents per kilowatt hour which creates an undue hardship upon all residents &entities,whether private,business,government,etc.;and, WHEREAS,|certain areas of Southeast Alaska enjoy the benefits of low-cost hydroelectric power such as through the Snettisham Power Station serving Juneau and the Tyee Power Station serving Wrangell/Petersburg which could also intertie with Kake and provide low-dost power utilizing a small percentage of the 50-plus percent of energy now literally being lost over the spillway for lack of connection to additional customers;and, WHEREAS,|other areas of the United States have received electrification by placement on the "grid” through initiatives by Federal and/or State funding to allow communities to enjoy the essential benefits of electricity that is virtually essential in today's society to maintain homes,industries,businesses,government,etc;and, WHEREAS,representatives of OVK (including the IRA Council president,two council members and the OVK executive director)plus other representatives of Kake attended the 11/20/02 Southeast Conference Intertie Committee meeting held in Juneau,to present a unified voice on behalf of Kake and its need for reasonably priced electricity;and, WHEREAS,_the 11/20/02 meeting also included representatives from other entities and communitiesincludingHoonah,with a resulting action plan in support of the simultaneous progression of steps/action to achieve necessary interties within the proposed Southeast Alaska grid, comprised of the Petersburg/Kake and Juneau/Hoonah interties plus the long-term goal of interconnection for all of Southeast Alaska. THEREFORE BE IT RESOLVED,that the OVK IRA Council formally supports efforts to achieve the Petersburg/Kake and Juneau/Hoonah interties as soon as possible;including requests to Federal,State and private agencies for funding &resource assistance to achieve these much needed connections for the community of Kake &community of Hoonah,as the next steps towards the completion of the long-term goal of interconnecting all of Southeast Alaska. CERTIFICATION This resolution was duly adopted at an IRA Council meeting held this yg ut day of Decemenrd,2002 by a eee aof5___(includes president as non-voting chairperson except in case of tie vote)with4yesvotes,@___no votes,and =abstaining.Pehettes y TELa}Qae S)uattCasimeroA.Aceveda Jr.,President Attested by Mar-19-03 12:268P City of Kake P.O.BOX 500 KAKE,AK 99830 PHONE:(907)785-3804 "HOME OF THE WORLD'S LARGEST TOTEM FOLE”FAX:(907)785-4815 RESOLUTION 2003-007 A RESOLUTION IN SUPPORT OF THE ELECTRIC INTERTIE. WHEREAS.The City of Kake supparts the Electrical Intertie.and WHEREAS,The Liccirical Intertie will enable everyone to enjoy the affordable,clean renewable energy source; THEREFORE IT BE RESOLVED THAT:The City of Kake by this resolution hereby Supports the Llectrical Intertie that will bring an abundance of hydro electric power to our community.' . PASSED AND APPROVED BY a duly constituted quorum of the City Council oftheCityofKakeonthe|&%day of Mar-ch 2003. F For the City of Kake: )AD BQ nee|Delbert Kadake,Acting Mayor | Violet E,sAndérson,City Clerk i NAK-13-U3 THU US+o1 PM CIV'y OF WRANGELL RESOLUTION NO.03-03-944 A RESOLUTION OF THE COUNCIL OF THE CITY OF WRANGLLL,ALASKA,SUPPORTING THE SOUTHEAST ALASKA INTERTLE PROJECT AND THE INTERTIE WORK OF SOUTHEAST CONFERENCE WHEREAS,Southeast Alaska is the only place in the United States with a population its sizo that is not interconnected by un electrical intertie system;and WHEREAS,the lack ofinterconnection mcrcases power costs to more than four (4)times the national average in some comniunities;and WHEREAS,the comniunities of Southcast Alaska uced reliable,cost effective, long-tern sources of energy for the future in order to minimize environmental impacts, Stabilize clevlic nutes,foster employment,and increase economic development opporturities;and WHEREAS,the Alaska Congressional Delegation was successful iu passing legislaticn authorizing the Southeast Alaska Intertie Project with Federal appropriations of up to $384 million dollars for the project;and WHEREAS,Southeast Conference hircd an interlie coordinator to work on intertie issues full time;and WHEREAS,Southeast Conference unanimously approved the Juncauw/Hoonah and Kake/Petersburg Intertie legs as prioritics and commissioned a comprehensive cugincering/economic analysis of the Southeast Alaska Intertie Project;and WHEREAS,it is vital that progress continues to be made on compicting the region-wide goal of interconnecting all of Southcast Alaska with a transmission line system. NOW,THEREFORE,BE IT RESOLVED,that the Council of the City of Wrangcll, Alaska,supports the efforts of Southeast Conferencc to identify funding and proceed with planning and construction on the Southcast Alaska Intertie Project in order to provide steady affordable power for Southcast residents,and reduce the dependence on expensive diesel generators by our rural communiitics. ADOPTED:March 11 <<.,2003 .J Atees_.&.beck ft ro..Bruce E,Harding,Mayor 7 ATTEST!s.4 Christie L.Jamieson,City Clerk rHA NU.r.Uc MAR.12.2883 18:35AM SLIKAH ELEUIRIL vere.Weve bow Sponsor:Administrator CITY AND BOROUGH OF SITKA RESOLUTION NO.03-863 A RESOLUTION OF THE ASSEMBLY OF THE CITY AND BOROUGH OF SITKA, ALASKA SUPPORTING THE SOUTHEAST ALASKA INTERTIEZ PROJECT AND THE INTERTIE WORK OF SOUTHEAST CONFERENCE WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, Southeast Alaska is the only place in the United States with a population its size that is not interconnected by an electrical intertie system;and the lack of interconnection increases power costs to more than four (4) times the national average in some communities;and, the communities of Southeast Alaska need reliable,cost effective,long- term sources of energy for the future in order to minimize environmental impacts,stabilize electric rates,foster employment,and increase economic development opportunities;and the Alaska Congressional Delegation was successful in passing legislation authorizing the Southeast Aiaska Intertie Project with Federal appropriations of up to $384 million dollars for the project;and Southeast Conference hired an intertte coordinator to work on intertte issues full time;and Southeast Conference unanimously approved the Juneau/Hoonah and Kake/Petersburg intertie legs as priorities and commissioned acomprehensiveengineering/economic analysis of the Southeast Alaska Intertie Project;and it is vital that progress continues to be made on completing the region- wide goal of interconnecting all of Southeast Alaska with a transmission line system.. NOW,THEREFORE,BE IT RESOLVED by the Assembly of the City and Borough of Sitka,Alaska that we support the efforts of Southeast Conference to identify funding and proceed with planning and construction on the Southeast Alaska Intertic Project in order to provide steady affordable power for Southeast residents,and reduce the dependence on expensive diesel generators by our rural communities. MAR.12.d2uu3 10:SoHI"!SLIKH ELEUIKILC Lori.twee tee RESOLUTION NO.03-863 Page 2 PASSED AND APPROVED by the Assembly of the City and Borough of Sitka,Alaskaonthis11"day of March,2003.Ah Fred Reeder,Mayor eeoTSSS Colleen Pellett,CMC Municipal-Clerk cate ssa fue may oyexwoSeiBESSEeeartes fro ar aeree eo perue soa Spa ACARI eRRT ne Sworn peraSreeieeyeCHaLysqacakedefGATTERASEReteieee (907)780-2222 FAX (907)463-3304 5601 Tonsgard Court,Juneau,AK 99801-7201 December 17,2002 Mr.Dave Carlson S.E.Conference Intertie Coordinator P.O.Box 329 Petersburg,Ak.99833 Re:Letter of Support Dear Mr.Carlson As members of the Southeast Conference Intertie Committee,we would like to express our support of the Southeast Electrical Intertie.On December 9,2002 the Board of Directors of Alaska Electric Light and Power Company approved a resolution supporting the Southeast Intertie Committee's intent to interconnect all of Southeast Alaska's Communities with an electrical transmission line,beginning with a line from Juneau to Hoonah and a line from Petersburg to Kake. We look forward to working with you and the other members of the Intertie Committee toward these ends. Sincerely, Liye 4S,re Tim McLeod President Alaska Electric Light and Power Company .ALASKA POWER aTTELEPHONE cy, P.O.BOX 3222 PORT TOWNSEND,WA 98368-0922 (360)385-1733 Ext.141 December 9,2002 Mr.Vernon Rauscher General Manager Tlingit-Haida Regional Electrical Authority 12480 Mendenhall Loop Rd. Juneau,AK 99801 Re:Letter of Support Dear Mr.Rauscher: As members of the Southeast Conference Intertie Committee,we would like to express our support for the long-term goal of electrically interconnecting all of southeast Alaska.Specifically,we support the development of the Juneau/Hoonah and Petersburg/Kake interties as proposed and prioritized by the Intertie Committee. We look forward to working with you and other members of the Intertie Committee toward these ends. Sincer Robert S.Grimm Arne Sather President President Alaska Power &Telephone Company Alaska Power Company Cc:Dave Carlson,SEC Intertie Committee Coordinator Loren Gerhard,SEC Executive Director Alf 'Wendy'Schaflestad,Mayor of Hoonah Albert Dick,Chairman Huna Totem Corporation Frank Wright Jr.,President Hoonah Indian Association Paul Reese,Mayor of Kake Roy Aceveda,President Organized Village of Kake Sam Jackson,CEO Kake Tribal Corporation Tim McCloud,CEO Alaska Electric Light &Power Gordon Jackson,Director Economic Development Central Council Hoonah Indian Association aPO.Box 602 Hoonah,Aki 99829-0602 Phone (907)945-3545 Fax (907)945-3703 RESOLUTION#02-13 A_RESOLUTION BY THE HOONAH INDIAN ASSOCIATION SUPPORTING THE JUNEAU/HOONAH AND PETERSBURG/KAKE SEGEMENTS OF THE SOUTHEAST ALASKA ELECTRICAL INTERTIE PROJECTS ,AS WELL AS THE LONG TERM GOAL OF INTERCONNECTING ALL OF SOUTHEAST ALASKA. WHEREAS,the Hoonah Indian Association is a federally recognized tribe m accordance with and by the authority of the Acts of Congress of June 18,1934 (48 Stat.984)and May 1,1936 (49 Stat.1250);and WHEREAS,the Juneau/Hoonah and the Petersburg/Kake segments of the Southeast Alaska Electrical Intertie System will provide Hoonah and Kake residents with substantially cheaper hydropower;and WHEREAS,at a meeting of the Southeast Conference Intertie Committee with a large representation from Hoonah and Kake held on November 20,2002 it was unanimously agreed that the Juneau/Hoonah and Petersburg/Kake segments be actively explored for design,routing, and funding simultaneously;and WHEREAS,one hundred thousand dollars has been pledged by the U.S.Department of Agriculture for an initial engineering/economic analysis of these two projects as well as an update of a broader energy plan for all of SE Alaska. NOW,THEREFORE BE IT RESOLVED that the Board of Directors of the Hoonah Indian Association,hereby supports the Juneau/Hoonah and Petersburg/Kake segments of the Southeast Alaska Electrical Intertie Project and the Long Term Goal of Interconnecting all of Southeast Alaska. CERTIFICATION This resolution was duly adopted this [4p 8 day of Féfrec any»2003,with a vote offor,©against,.2 absent,©_,abstentions. gece t tebe Z/2/tffo3Mr.Frank Wright Jr.,Presiderit Date i Organized Village of Kake P.O.Box 316 Kake,Alaska 99830-0316 Telephone 907-785-6471 Fax 907-785-4902 /email KeexKwaan@starband.net (Federally Recognized Tribal Government serving the Kake,Alaska area) Resolution No.2002-22 -Support of Electrical Intertie&Proposed Collaborative Implementation WHEREAS,|the Organized Village of Kake (hereinafter OVK)is a duly constituted Indian Tribe _Organized pursuant to the authority of the Federal Indian Reorganization Acts (hereinafter IRA)of 1934 &1936 with the IRA Council as the duly elected governing body formed © under its Constitution &By-Laws;and, WHEREAS,_the [RA Council has responsibilities to its Tribal Citizens (population of 600 residing in the Kake area)that include,among others,powers of authority to "protect the general welfare and security of the Village”as put forth within the OVK Constitution &By-Laws;and, WHEREAS,_the cost of electricity in Kake is inordinately high in relationship to other areas,with rates in the range of mid-thirty cents per kilowatt hour which creates an undue hardship upon all residents &entities,whether private,business,government,etc.;and, WHEREAS,_certain areas of Southeast Alaska enjoy the benefits of low-cost hydroelectric power such as through the Snettisham Power Station serving Juneau and the Tyee Power Station serving Wrangell/Petersburg which could also intertie with Kake and provide low-cost power utilizing a small percentage of the 50-plus percent of energy now literally being lost over the spillway for lack of connection to additional customers;and, WHEREAS,_other areas of the United States have received electrification by placement on the "grid” through initiatives by Federal and/or State funding to allow communities to enjoy the essential benefits of electricity that is virtually essential in today's society to maintain homes,industries,businesses,government,etc;and, WHEREAS,_representatives of OVK (including the IRA Council president,two council members and the OVK executive director)plus other representatives of Kake attended the 11/20/02 Southeast Conference Intertie Committee meeting held in Juneau,to present a unified voice on behalfof Kake and its need for reasonably priced electricity;and, WHEREAS,_the 11/20/02 meeting also included representatives from other entities and communities including Hoonah,with a resulting action plan in support of the simultaneous progression of steps/action to achieve necessary interties within the proposed Southeast Alaska grid, comprised of the Petersburg/Kake and Juneau/Hoonah interties plus the long-term goal of interconnection for all of Southeast Alaska. THEREFORE BE IT RESOLVED,that the OVK IRA Council formally supports efforts to achieve the Petersburg/Kake and Juneau/Hoonah interties as soon as possible;including requests to Federal,State and private agencies for funding &resource assistance to achieve these much needed connections for the community of Kake &community of Hoonah,as the next steps towards the completion of the long-term goal of interconnecting all of Southeast Alaska. CERTIFICATION This resolution was duly adopted at an IRA Council meeting held this jour day of Decemprd.2002 bya quorum of 5 (includes president as non-voting chairperson except in case oftie vote)with4-yes votes,no votes,and ®_abstaining. ae wa id "F f°-an.es,"2 \tthe.fil (CO J ae ©itl Casimero A.Aceveda Jr.,President J Attested by CITY OF PETERSBURG P.O.BOX 329 -PETERSBURG,ALASKA 99833 TELEPHONE (907)772-4511 TELECOPIER (907)772-3759 RESOLUTION NO.1708 Offered by:Anderson Supported by:Sarff RESOLUTION SUPPORTING THE SOUTHEAST ALASKA INTERTIE PROJECT AND THE INTERTIE WORK OF SOUTHEAST CONFERENCE WHEREAS,Southeast Alaska is the only place in the United States with a population its size that is not interconnected by an electrical intertie system;and WHEREAS,the lack of interconnection increases power costs to more than four (4)times the national average in some communities;and WHEREAS,the communities of Southeast Alaska need reliable,cost effective,long-term sources of energy for the future in order to minimize environmental impacts,stabilize electric rates,foster employment and increase economic development opporturiities;and WHEREAS,the 'Alaska Congressional Delegation was successful in passing legislation authorizing the Southeast Alaska Intertie Project with Federal appropriations of up to $384 million dollars,and WHEREAS,Southeast Conference hired an intertie coordinator to work on intertie issues full time,and WHEREAS,Southeast Conference unanimously approved the Juneau/Hoonah and Kake/Petersburg Intertie legs as priorities and commissioned a comprehensive engineering/economic analysis of the Southedst Alaska Intertie Project;and WHEREAS,it is vital that progress continues to be made on completing the region-wide goal of interconnecting all of southeast Alaska with a transmission line system. THEREFORE BE IT RESOLVED,the Petersburg City Council supports the efforts of Southeast Conference to identify funding and proceed with planning and construction on the Southeast Alaska Intertie Project in order to provide steady affordable power for Southeast residents and reduce the dependence on expensive diesel generators by our rural communities Passed and approved by the Petersburg City Council on February 18,2003. CITY OF PETERSBURG,ALASKA Rawk ary 'i ave A Ted Smith,Mayor/ }ATURST:DK Kafhy O'Rear,City Clerk Kennecott Greens Creek Mining Co. PO Box 32199 Kennecott Juneau,Alaska 99803-2199 Minerals Rich A.Heig General Manager Tel:907 789 8110 Fax:907 789 8128 Email:heigr@kennecott.com March 3,2003 Mr.Dave Carlson South East Alaska Conference Intertie Coordinator P.O.Box 329 Petersburg,Alaska 99833 Dear Mr.Cartson: Kennecott Greens Creek Mining Company is familiar with the Southeast Alaska Intertie Project that is intended to bring interconnection hydroelectric energy to rural communities now providing their own energy using diesel generation.Greens Creek supports the efforts to provide low cost hydroelectric energy to rural communities and to establish a transmission line system interconnection in Alaska where it does not now exist. Greens Creek supports the hydroelectric energy intertie project proposed between Douglas Island and the community of Hoonah.This interconnection,proposed to be routed through Hawk Inlet on Admiralty Island,also will make hydroelectric energy available to Greens Creek.Reliable,cost effective power,with a concurrent reduction in "Greenhouse”gases associated with diesel-generated energy,makes power available from the intertie attractive to Greens Creek.Partnering to enhance the intertie connections to our neighboring communities,and the opportunity to replace current diesel generated power,both fit into our corporate policies of Sustainable Development and Greenhouse gas reduction initiatives. Sincerely, KENNECOTT GREENS CREEK MINING COMPANY AR Rich A.Heig General Manager retersbdurg roweroviygnit LDeguET big 2201 pow "Vy ve AVIV ere 6 3 Thomas BayTBPAPowerAuthority -TYEE LAKE HYDROELECTRIC PROJECT - P.O.BOX 1318 WRANGLLL.ALASKA 99929 (907)874-3834 FAX (907)874-2581 THOMAS BAY POWER AUTHORITY RESOLUTION NO.2003-0220B A RESOLUTION BY 'THLE COMMISSION OF THOMAS BAY POWER AUTHORITY,SUPPORTING THE SOUTHEAST ALASKA INTERTIE PROJECT & THE INTERTIE WORK OF SOUTHEAST CONFERENCE. WHEREAS,Southeast Alaska is the only place in the United States with a population its size that is not interconnected by an electrical intertic system;and WHEREAS,the lack of interconnection increases power costs to more than four (4)times the national uverape in some commumbies;and WHEREAS,the communities of Southeast Alaska need reliable,cost effective, long-term sources of encrpy for the futurein order to minimize environmental impacts,:omic dcvclopments" apportunities;and MPD Ae ohn Alucks Congicssional Delegation \was successful |in passing6Alnetos4.leg isiauion autnoriZingmee Southeast ras a TF "TS 8 WHEREAS,Southeast Conference hired an Intertic Coordinator to work on intertie issues full time;and WHEREAS,Southcast Conference unanimously approved the Juneau/Hoonsh and Kake/Petersburg Intertic legs as prioriics and commissioned a comprehensive engineering/economic analysis of the Southeast Ajaska Intertic Project;and WHEREAS,it is vitul that progress continucs to be made on completing a region- *gual of interconnecting all of Southcast Alaska with a transmission line system, now,therefore,be it he Fetersdurg rowersLignt lveyurrfia7-3201 foo 2 vy aVevi weve 8 en TBPA Resolution No..2003-0220B Page 2 RESOLVED That the Commission of the Thomas Bay Power Authority support the efforts of the Southcast Confercnce to identify funding and proceed with planning and construction on the Southeast Alaska Intertie Project in order to reevite cteede ent -MPAAA EL Wn Be she cn ee ts a re |-t 2 _.by generators by our rural communitics. PASSED AND APPROVED THIS|22?_DAY OF fb ,2003.AWh boon. TBPA President ATTEST:O00 SH Ae -..TBPA Of)Manag Sant Ry:Alaska Fleatrin light &Power;9N748ABRAGA;Feh-4 H:1HAM;rage vir Executive Council of the Central Council TLINGIT AND HAIDA INDIAN TRIBES OF ALASKA Resolution EC/O1-__ Title:A Resolution Supporting the Southeast Alaska Intertie Project and the Intertie Work of Southeast Conference WHEREAS,Southeast Alaska is the only remaining place in the United States with a population its size that is not interconnected by an electrical intertie system;and WHEREAS,the lack of interconnection increases power costs to more than four (4)times the national average in some conmnunities;and, WHEREAS,the communities of Southeast Alaska need reliable,cost effective, long-term sources of energy for the future in order to minimize environmental impacts, stabilize electric rates,foster employment,and increase economic development opportunities;and WHEREAS,the Alaska Congressional Delegation was successful in passing legislation authorizing the Southeast Alaska Intertie Project with Federal appropriations of up to $384 million dollars for the project;and, WHEREAS,Southeast Conference hired an intertie coordinator to work on intertic issucs full time;and WHEREAS,Southcast Conference unanimously approved the Kakc/Petersburg. and Juneau/Hoonah Intertie legs as priorities and commissioned a comprehensive engineering/economic analysis of the Southeast Alaska Intertie Project;and WHEREAS,it is vital that progress continues to be made on completing the rcgion-wide goal of interconnecting all of Southeast Alaska with a transmission line system. NOW THEREFORE BE IT RESOLVED,that Central Council of the Tlingit and Haida Indian Tribes of Alaska supports the efforts of Southeast Conference to identify finding and proceed with planning and construction on the Southeast Alaska Intertie Project in order to provide steady affordable power for Southeast residents,and reduce the dependence on expensive diesel generators by our rural cummmunilies. FURTHER RESOLVED,that we support the Angoon Thayer Lake Hydroelectric Project as a stand alone project that will provide affordable energy for the community way hefore the SE Intertie makes the Angoon connection a priority. A RESOLUTION SUPPORTING DEVELOPMENT OF THE SOUTHEAST ALASKA REGIONAL ELECTRICAL GENERA- WHEREAS WHEREAS WHEREAS WHEREAS WHEREAS WHEREAS TION AND DISTRIBUTION GRID (Resolution 01-04) reliable,stable,inexpensive electric power is essential to the economicstrengthandsocialwell-being of communities in Southeast Alaska;and, currently,communities in Southeast Alaska independently generate and distribute electric power for public,commercial,and private use;and, construction of a regional hydroelectric-based electric generation and dis- tribution (intertie)system in Southeast Alaska would result in more effi- cient generation,distribution,and consumption of electric energy,bringingcommunitiesmorereliable,stable,inexpensive electric power;and, construction of a hydroelectric-based regional intertie would contribute to conservation of non-renewable natural resources by helping get communi- ties off of expensive diesel power and on to less expensive hydroelectric power;and, Southeast Conference has prepared a plan for construction of a regional hydroelectric-based electrical generation and distribution system and cre- ated a standing committee to bring the region's communities together to implement that plan;and, communities in Southeast Alaska support implementation of the Southeast Alaska Electrical Intertie system Plan as expressed in prior year resolu- tions of The Southeast Conference. NOW THEREFORE BE IT RESOLVED TITAT: Southeast Conference urges Governor Knowles and his administration to continue support of the Southeast Alaska Electrical Intertie System Plan and join with the region's communities in implementing the plan by identi- fying it as a "priority project"for authorization and funding by the federal government. Southeast Conference urges Alaska's Congressional delegation to join with the state and the region's communities in obtaining federal authorization and funding for implementation of the Plan. ADOPTED BY SOUTHEAST CONFERENCE ON SEPTEMBER 21,2000 Witness: Rosemary Hagevig -Southeast Conference President Attest: Loren Gerhard -Executive Director RESOLUTION NO.2003-011 OF THE FOUR DAM POOL POWER AGENCY SUPPORTING THE SE ALASKA INTERTIE PROJECT AND THE WORK OF SOUTHEAST CONFERENCE WHEREAS,Southeast Alaska is the only place in the United States with a population its size that is not interconnected by an electrical intertie system;and WHEREAS,the lack of interconnection increases power costs to more than four (4)times the national average in some communities;and WHEREAS,the communities of Southeast Alaska need reliable,cost effective,long-term sources of energy for the future in order to minimize environmental impacts,stabilize electric rates, foster employment,and increase economic development opportunities;and WHEREAS,the Alaska Congressional Delegation was successful in passing legislation authorizing the Southeast Alaska Intertie Project with federal appropriations of up to $384 million dollars for the project;and WHEREAS,Southeast Conference hired an intertie coordinator to work on intertie issues full time;and WHEREAS,Southeast Conference unanimously approved the Juneau/Hoonah and Kake/Petersburg Intertie legs as priorities and commissioned a comprehensive engineering/economic analysis of the Southeast Alaska Intertie Project;and WHEREAS,it is vital that progress continues to be made on completing the region-wide goal of interconnecting all of Southeast Alaska with a transmission line system: NOW,THEREFORE,BE IT RESOLVED that the Four Dam Pool Power Agency supports the efforts of Southeast Conference to identify funding and proceed with planning and construction on the Southeast Alaska Intertie Project in order to provide steady affordable power for Southeast residents,and reduce the dependence on expensive fossil fuel generators by our rural communities. DATED and EFFECTIVE as of the 17th day of March,2003. THE FOUR DAM POOL POWER AGENCY By: Darron Scott,Chairman Page |-Res.No.2003-011 211169/1/MMD/052394-0036 Attest: Secretary Page 2 -Res.No.2003-011 211 169/1/MMD/052394-0036 RESOLUTION NO.03-2069 A RESOLUTION OF THE COUNCIL OF THE CITY OF KETCHIKAN SUPPORTING THE SOUTHEAST ALASKA INTERTIE PROJECT AND THE INTERTIE WORK OF SOUTHEAST CONFERENCE;AND ESTABLISHING AN EFFECTIVE DATE WHEREAS,Southeast Alaska is the only place in the United States with a population its size that is not interconnected by an electrical intertie system;and WHEREAS,the lack of interconnection increases power costs to more than four (4) times the national average in some communities;and, WHEREAS,the communities of Southeast Alaska need reliable.cost effective,long- term sources of energy for the future in order to minimize environmental impacts,stabilize electric rates,foster employment,and increase economic development opportuniues;and WHEREAS.the Alaska Congressional Delegation was successfui in passing legislation authorizing the Southeast Alaska Intertie Project with Federal appropriations of up to $384 million dollarsfor the project;and WHEREAS,Southeast Conference hired an interue coordinator to work on interte issues full tume:and WHEREAS.Southeast Conference unanimously approved the Juncau'Hoonah and Kake'Petersburg Interue legs as pnionues upon completion of the Swan Lake-Tvee Lake Interue project.and commissioned a comprehensive engineering:econonue analysis of the Southeust Alaska Intertie Project:and WHEREAS,it is vital thai progress continues to be made on completing the region-wide goal of interconnecting all of Southeast Alaska with a transmission line system NOW,THEREFORE BE IT RESOLVED by the Council of the Cin of Ketchikan as tollows: Section 1.The Council of the City of Ketchikan supports the etiorts of Southeasi Conference to identify funding and work with electric uulities on the planning and construction on the Southeast Alaska Interue Project in order to provide steady affordable power fo: Southeast residents,and reduce the dependence on expensive diesel eeneraiors by our rural communines. Section 2:This resolution ts ctfective immediately upon passaze and appre.al PASSED AND APPROVED this (7°dav of April.2003. SYf ftroofaemao)/berwe (eihin ee.Bob Weinstein.Maver ANTESoshurine DI]hutKathermeM.Suiter C tay C ier]IX Opnre Cb UO suUsuud 9,c conTrerence yur #55 o07/U DR TURNER (30 697-2429 p. A RESOLUTION SUPPORTING THE FORMATION OF A SOUTHEAST ALASKA REGIONAL ENERGY AGENCY WHEREAS,Southeast Conference has worked hard with many partners _saver the last decade to secure authorization and funding for a regionwide Electrical Intertie System which resulted in congressional authorization .In 2000 for federal participation up to 384 million dollars;and, WHEREAS,The Conference obtained a grant in FY 02 to pursue formation of an entity to own and operate such a system,so that congressional authorization could be utilized to identify and construct components of the tegional intertie;and,OME O/-WHEREAS,The community of GUSTAVUS,ALASKA PAYHIGHESTELECTRICITYRATESINNORTHAMERICA;and. WHEREAS,The community is dependent on diese]generators for allofitselectricityneeds. NOW,THEREFORE,BE IT RESOLVED THAT: THE GUSTAYUS COMMUNITY ASSOCIATION Endorses and encourages the work of the SOUTHEAST CONFERENCE in its efforts to bring clean,environmentally sound,sustainable hydropower to as many communities in the region as is feasible through the SOUTHEAST INTERTIE PROJECT. BE IT FURTHER RESOLVED THAT: THE GUSTAVUS COMMUNITY ASSOCIATION HEREBY REQUESTS:That the feasibility of including GUSTAVUS in the Intertie be fully examined. ADOPTED BY THE MEMBERSHIP of THE GUSTAVUS COMMUNITY ASSOCIATION APRIL 10,2003 yeA.Sizecharmakane Yfidf{gs Yoo CURE Fe rvice/Gee SRYLLBe KETCHIKAN GATEWAY BOROUGH RESOLUTION NO.1725 A RESOLUTION OF THE ASSEMBLY OF THE KETCHIKAN GATEWAY BOROUGH, ALASKA,SUPPORTING THE SOUTHEAST ALASKA INTERTIE PROJECT AND THE INTERTIE WORK OF THE SOUTHEAST CONFERENCE,AND ESTABLISHING AN EFFECTIVE DATE. RECITALS A.WHEREAS,Southeast Alaska is the only place in the United States with a population its size that is not interconnected by an electrical intertie system;and B.WHEREAS,the lack of interconnection increases power costs to more than four (4)times the national average in some communities;and, Cc,WHEREAS,the communities of Southeast Alaska need reliable,cost effective,long-term sources of energy for the future in order to minimize environmental impacts,stabilize electric rates, foster employment,and increase economic development opportunities;and D.WHEREAS,the Alaska Congressional Delegation was successful in passing legislation authorizing the Southeast Alaska Intertie Project with Federal appropriations of up to $384 million dollars for the project;and E.WHEREAS,Southeast Conference hired an intertie coordinator to work on intertie issues full time;and F,WHEREAS,Southeast Conference unanimously approved the Juneau/Hoonah and Kake/Petersburg Intertie legs as priorities and commissioned a comprehensive engineering/economic analysis of the Southeast Alaska Intertie Project;and G.WHEREAS,it is vital that progress continues to be made on completing the region-wide goal of interconnecting all of Southeast Alaska with a transmission line system. NOW,THEREFORE BE IT RESOLVED,that the Assembly of the Ketchikan Gateway Borough Section 1 Supports the efforts of Southeast Conference to identify funding and proceed with planning and construction on the Southeast Alaska Intertie Project in order to provide steady affordable power for Southeast residents,and reduce the dependence on expensive diesel generators by our rural communities. Section 2.This resolution is effective immediately. ADOPTED this 2nd day of April,2003. Resolution No.1725 BOROUGH MAYOR "Cs BOROUGH CLERK Approved as to form: SACK BOROUGH ATTORNEY [Ertecive Dae:Aprl2.203- CS S* CS ROLL CALL YES NO __ABSENT|BERGERON v |BURTON COOSE Y LANDIS v |[nav v SARBER v | TIPTON v |MAYOR (Tic Vote Only)4 AFFIRMATIVE VOTES REQUIRED FOR PASSAGE |$<LeemaseeeneaRet tlingit &halda Regional electrical authority P.O.Box 210149 ¢Auke Bay,Alaska 99821 ©(907)789-3196 Board Resolution 2003-04 Tlingit-Haida Regional Electrical Authority March 27,2003 ENTITLED:SUPPORTING THE SOUTHEAST ALASKA INTERTIE PROJECT AND THE INTERTIE WORK OF SOUTHEAST CONFERENCE WHEREAS,Southeast Alaska is the only place in the United States with a population its size that is not interconnected by an electrical intertie system;and WHEREAS,the lack of interconnection increases power costs to more than four (4)times the national average in some communities;and WHEREAS,the communities of Southeast Alaska need reliable,cost effective,long-term sources of energy for the future in order to minimize environmental impacts,stabilize electric rates,foster employment,and increase economic development opportunities;and WHEREAS,the Alaska Congressional Delegation was successful in passing legislation authorizing the Southeast Alaska Intertie Project with Federal appropriations of up to $384 million dollars for the project;and WHEREAS,Southeast Conference hired an intertie coordinator to work on intertie issues full time;and WHEREAS,Southeast Conference unanimously approved the Juneau/Hoonah and Kake/Petersburg Intertie legs as priorities and commissioned a comprehensive engineering/economic analysis of the Southeast Alaska Intertie Project;and WHEREAS,it is vital that progress continues to be made on completing the region-wide goal of interconnecting all of Southeast Alaska with a transmission line system.\ NOW,THEREFORE BE IT RESOLVED,that the Board of Commissioners of Tlingit-Haida Regional Electrical Authority supports the efforts of Southeast Conference to identify funding and proceed with planning and construction on the Southeast Alaska Intertie Project in order to provide steady affordable power for Southeast residents,and reduce the dependence on expensive diesel generators by our rural Cy,yanRichardGedrge,Chairman bee LinWilburBrown,Secretary/T reasurer A RESOLUTION SUPPORTING DEVELOPMENT OF THE SOUTHEAST ALASKA REGIONAL ELECTRICAL GENERA- WHEREAS WHEREAS WHEREAS WHEREAS WHEREAS WHEREAS TION AND DISTRIBUTION GRID (Resolution 01-04)| reliable,stable,inexpensive electric power is essential to the economicstrengthandsocialwell-being of communities in Southeast Alaska;and, currently,communities in Southeast Alaska independently generate and distribute electric power for public,commercial,and private use;and, construction of a regional hydroelectric-based electric generation and dis- tribution (intertie)system in Southeast Alaska would result in more effi- cient generation,distribution,and consumption of electric energy,bringingcommunitiesmorereliable,stable,inexpensive electric power;and, construction of a hydroelectric-based regional intertie would contribute to conservation of non-renewable natural resources by helping get communi- ties off of expensive diesel power and on to less expensive hydroelectric power;and, Southeast Conference has prepared a plan for construction of a regional hydroelectric-based electrical generation and distribution system and cre- ated a standing committee to bring the region's communities together to implement that plan;and, communities in Southeast Alaska support implementation of the Southeast Alaska Electrical Intertie system Plan as expressed in prior year resolu- tions of The Southeast Conference. NOW THEREFORE BE IT RESOLVED TITAT: Southeast Conference urges Governor Knowles and his administration to continue support of the Southeast Alaska Electrical Intertie System Plan and join with the region's communities in implementing the plan by identi- fying it as a "priority project"for authorization and funding by the federal government. Southeast Conference urges Alaska's Congressional delegation to join with the state and the region's communities in obtaining federal authorization and funding for implementation of the Plan. ADOPTED BY SOUTHEAST CONFERENCE ON SEPTEMBER 21,2000 Witness: Rosemary Hagevig -Southeast Conference President Attest: Loren Gerhard -Executive Director Alaska State Legislature For Immediate Release:April 11,2003 Contact:Representative Peggy Wilson,S.E.Caucus Chair,800-686-3824 Southeast Caucus Supports Intertie Project Unanimous Support for Electric Transmission Grid (JUNEAU)-Members of the Southeast Alaska Legislative Caucus proclaimed their strong support for the Southeast Alaska Intertie Project on Friday.The project will eventually connect all the communities of Southeast Alaska with an electric transmission grid. "We have an abundance of hydroelectric power available in Southeast Alaska,and the lack of an interconnected system has deprived many communities from receiving the benefits of this renewable energy resource”,said Southeast Caucus Chair Representative Peggy Wilson (R-Wrangell)."Many of our communities continue to generate electricity with diesel fuel,which takes a toll on both the environment and the energy customer's wallet.” The Southeast Conference,a regional,nonprofit corporation that advances the collective interests of the people of Southeast Alaska;has been working hard for the past several years to advance the intertie.Recently,the Southeast Conference prioritized the Juneau to Hoonah and the Petersburg to Kake interties as the next segments for the system. When the system is complete,an electrical grid will provide renewable and clean hydroelectric power throughout Southeast Alaska. Members of the Southeast Caucus include Sen.Robin Taylor (R-Wrangell),Sen.Kim Elton (D-Juneau),Sen.Georgianna Lincoln (D-Rampart),Rep.Bill Williams (R- Saxman),Rep.Peggy Wilson (R-Wrangell),Rep.Beth Kerttula (D-Juneau),Rep.Bruce Weyhrauch (R-Juneau),Rep.Albert Kookesh (D-Angoon).Although members of the Southeast Legislative Caucus represent diverse political philosophies,they agree that the Southeast Alaska Intertie Project is vital to the future of Southeast Alaska and should be completed as soon as possible. (MORE) SOUTHEAST CAUCUS SUPPORTS INTERTIE April 11,2003 2-2-2-2-2 "Hydroelectric power is good,clean,affordable energy for our communities,”caucus member Rep.Beth Kerttula (D-Juneau)said."It has been great to see our entire Southeast Caucus pull together to support the intertie.” "The intertie is vital to the economic viability of Southeast Alaska,”caucus member Rep. Bruce Weyhrauch (R-Juneau)said. "Southeast Alaskan communities have been economically hammered over the past several years and reliable,reasonably priced electricity will help nurture economic growth in our region,”caucus member Senator Robin Taylor (R-Wrangell)said. HHH 7 GE Inte A RESOLUTION SUPPORTING DEVELOPMENT OF THE SOUTHEAST ALASKA REGIONAL ELECTRICAL GENERATION AND DISTRIBUTION GRID (Resolution 99-03) WHEREAS reliable,stable,inexpensive electric power is essential to the economic strength and social well-being of communities in Southeast Alaska,and WHEREAS communities in Southeast Alaska currently independently generate and distributeelectricpowerforpublic,commercial,and private use,and WHEREAS construction of a regional hydroelectric-based electric generation and distribution(intertie)system in Southeast Alaska would result in more efficient generation,dis- tribution,and consumption of electric energy,bringing communities more reliable, stable,inexpensive electric power,and WHEREAS construction of a hydroelectric-based regional intertie would contribute to conser-vation of non-renewable natural resources by helping get communities off of ex- pensive diesel power and on to less expensive hydroelectric power,and WHEREAS Southeast Conference has prepared a plan for construction of a-regional hydroelec-tric-based electrical generation and distribution system and created a standing com-. .mittee to bring the region's communities together to implement that plan.&-FZ .:-(Row THEREFORE BE IT RESOLVED THAT:-be UFCOA A" Southeast-Conferenee-urges-communities in the regionAd support implementation of the Southeast Alaska Electrical Intertie System Plan.45 Faf'eérrc&o ( 4(f£11f 2 7°COoVvl pret EMU 1 ESF SAVEGO ()Southeast Conference urges Governor Knowles and his administration to embracetheIntertieSystemPlanandjoinwiththeregion's communities in implementingtheplan.PY lPferue vine To Ont A FRR ITy PROUT Fee Awl 0642,Ne®Fer his RF Teo FFE ANG COBH. a)Southeast Conference urges Alaska's Congressional delegation to join with the stateandtheregion's communities in,funding implementation of the planFOFALFeteATIA!4 ADOPTED BY SOUTHEAST CONFERENCE ON SEPTEMBER 24,1998. Witness: Richard Smith -President Southeast Conference Attest: Berne C.Miller -Executive Director (72)SeovutAart COC Fb ain OE "U@tis Cor far oft keeet @s Are f7tt DOD (AAAI B08 YS. ". .-TYE ,70 FACIE SIATE fteAr cing of LASSE L (Oi Garié PY DGLRIVAC CECH EATOY fog A JIDIE Wie lO Poi erPlea Br IME YOY Ffovg PAn Peo Allo tA?ien Ae TurwitlA on OPAL. punlie Orbis Memorandum To:The Honorable Bob Weinstein &City Council From:John A.Magyar,KPU General Manager Date:September 19,1998 Subject:SE Alaska Intertie (Swan-Tyee)Funding Request This is to request City Council authorization to seek funding from the State of Alaska generally as set forth in the attached Community of Ketchikan Legislative Liaison project document and to seek support for this funding approach from other interested parties in southeast and throughout the state of Alaska. In answer to some questions you may have: e¢Why would the Four Dam Pool communities/operating utilities support this? Because construction of the intertie will permit full utilization of the Tyee Project and reduce per kWh operating costs to these utilities and their rate payers.Four Dam Pool support for the intertie is greater than it has ever been and,I believe is sellable. e Why would the state consider bonding for the intertie? Because construction of the intertie will:(1)improve efficiency and future revenue generation of the Four Dam Pool projects which is strongly supported by the voters in the Four Dam Pool communities and the operating utilities;(2)begin construction of a SE Alaska electrical grid that is universally supported by communities and utilities throughout SE Alaska (including Cape Fox Corporation and Alaska Power and Telephone);(3)allow construction of the intertie to go forward with just a little more funding heip from state/federal sources;and,(4)allow $20 million to be freed up for PCE,rail belt utilities or other state uses. e Why would such entities as Cape Fox Corporation and Alaska Power and Telephone support the intertie? Because is will serve as a highway for future electrical generation from the Lake Mahoney Project and perhaps other sources controlled by them into a diverse market and enhance their ability to generate and sell energy at a profit in the future.it also opens the door for AP&T to participate in construction of this line. Itis my intent to seek a resolution from City Council supporting this funding plan after further discussions with the PMC,Southeast Conference,etc. Recommended Motion: I move that the City Council direct the KPU General Manager to seek funding from the State of Alaska generally as set forth in the attached Legislative Liaison project document. Attachment LEGISLATIVE DISTRICT SENATEA HOUSE 1 COMMUNITY OF KETCHIKAID RAFT SOUTHEAST ALASKA -ELECTRIC INTERTIE Funding Sources Requested $4,400,000 Matching/Local Total -Annual $4,400,000 PROJECT SUMMARY: The SE Alaska Intertie is a proposed 57 mile transmission line connecting the Four Dam Pool hydroelectric projects at Swan Lake on the Upper Carroll Inlet and Lake Tyee on the Bradfield Canal. STATEMENT _OF NEED AND SUPPORT: e The SE Intertie has been rated the number one regional priority by the community of Ketchikan since the late 1980s.The electrical power so badly needed by Ketchikan is readily available as surplus at Lake Tyee. e Surplus energy sold at Lake Tyee will directly benefit utility rate payers in the Four Dam Pool communities of Kodiak,Copper Valley,Petersburg,Wrangell and Ketchikan. e It will help reduce dependence on back-up diesel generation and the attendant air emissions. e It is universally supported by southeast Alaska operating utilities and communities,by the Southeast Conference,by the Four Dam Pool operating utilities and communities,by Ketchikan Electric Company which is the co-venture firm of Cape Fox Corporation and Alaska Power & Telephone. e It is the first leg in a regional electrical grid that will provide efficient and reliable electrical power to the residents of southeast Alaska from Juneau,to Sitka,Petersburg,Kake,Wrangell,Ketchikan, Metlakatla,and eventually Prince of Wales Island communities. PROJECT STATUS: The EIS for the SE Intertie is complete and the US Forest Service has issued its Record of Decision which has withstood appeal.Design work is complete.Other permits from the Corps of Engineers, Coastal Zone Management and other regulatory agencies are in the final stages.The two-year construction phase can begin as soon as a complete funding program is in place -as early as the summer of 1999. FUNDING STATUS: Estimated Intertie Cost with Domestic Timber Credit $73,200,000 State Grants Authorized/Received $11,200,000 Federal Grants Authorized/Received 9,900,000 State Loan Authorized (has not been accepted by voters)20,000,000* Federal Grant Anticipated in FY99 Budget 7.500.000 Total Funding Available/Anticipated 48.600,000 Funding Needed $24,600,000 *Funding Needed (If $20 million Joan declined by Ketchikan)$44,600,000 LEGISLATIVE DISTRICT SENATE A HOUSE I DRAFT e Only the funding shortfall is standing in the way of SE Intertie construction.Ketchikan is asking the state to bond for the $45 million to build the intertie and to utilize 40%of the Four Dam Pool -debt service payment (approximately $4.4 million per year)to create a revenue stream for payment of this bond.(This is not new funding.In 1993 the Alaska State Legislature passed and the governor signed into law legislation allocating 40%of the Four Dam Pool debt service payments to fund the SE Intertie). e The state has set aside $20 million as a low interest loan for the construction of the SE Intertie. Ketchikan will not need or accept this loan if the state assumes bonding responsibility for the SE Intertie;and,the $20 million can be put to other state efforts. PROPOSED FUNDING SOLUTION: LEGISLATIVE DISTRICT SENATE A HOUSE I SEP.-18'98(FRI)15:41 KPU so SINISTRATION TEL 7 225 1000 P,001 KETCHIKAN PUBLIC UTILITIES SWAN LAKE -LAKE TYEE TRANSMISSION LINE INTERTIE PROJECT 2930 Tongass Avenue,Ketchikan,Alaska 9990] (907)225-1000 (907)225-1888 Fax FAXTO:-Dennis McCrohan 9/18/98AIDEAK (907)269-3044 1001 . __FROM:Rich Trimble "7 SUBJECT:Swan-Tyce Intertie -Expenditures to Date and Estimated Project Cost Dennia: T understand your objective is to compare our actual grant encumbrances and expenses against the project estimate.J am probably giving you much more detail than you care to have,but I preferred that you be awareofmyassumptionsincomparingourcoststotheprojectestimate. The most recent project estimate breakdown is attached.Assuming a domestic timber credit,the project cost is $71.8 million in 19975.Raytheon escalated that to $73.2 million in 1998$earlier this year,but I do not have the breakdown of that estimate so I am Sorced to reference the earlier estimate in 1997$.Just note that we have {ried to be consistent in referencing $73.2 million as our most recent 19988 estimate.$71.8 is nor the current project estimate.Ifyou wish to make further use of the project estimate in your awn in-house analyses,let mo know and J will ask Raytheon to provide an updated breakdown of their $73,2 million 19988 estimate.A rough comparison of our actual encumbrances and expenses to the project estimate follaws: Trem Estimated Cost Cost to Date Status 1997$ Licensing/Permitting $2.0 million $2.3 million Essentially complcto Engineering $5.5 million $4.5 million Essentially completa Construction Management $2.5 million $1.3 million Not all services bid Owner's Cost $3.3 million $0.6 million Continuing The following detail is provided in case you wish to understand how I have allocated our costs: Our licensing/penmitting cantract with Foster-Wheeler is $2.17 million with about $0.25 million budgeted for environmental services during construction.While we have yet to bid construction management services,I believe it is appropriate to allocate all services during construction against that line item so that is howIhandledthe$0,25 million.Additional licensing/penmitting casts are the EIS related Power Supply Planning Qhides at C942 W867 a T nly Grace alternatives ctidu ot 844 GAN and TISFS encte of 47 291 Tealeulate nce oe GL? SRS SEP.-18'98(FRI)15:42 KPU -AINISTRATION TEL 7 225 1000 P.002 Our engineering contract with Raytheon is $5.42 million with $1.07 million budgeted for engineering services during construction.Again,J would allocate that $1.07 million against the construction management line item.Our separate geotech contract would add $0.14 million to the engincering line item.Pre-construction costs are $5.42 -$1.07 +$0.14 =$4.49 million. If you agree with my Jogic,construction management would have actual encumbrances to date of $1.07 + $0.25 =$1.32 million for the engineering and environmental assistance during construction included in current contracts.For what it is worth,Raytheon has proposed an increase of $1.17 million to their contracttoprovidetheremainingconstructionmanagementservices.KPU has expressed a desire to solicit bids forthisservice,but if Raytheon's offer were accepted it would bring our total construction management costs ta $1.32 +$1.17 =$2.49 million.This is close 1o the construction management line item estimate of $2.55 taillion. You should note that some of the Owner's Costs should fall into engineering or permitting categories (meteorological investigations for example)but because they are relatively small in magnitude,[have nat separated those out for this discussion,Let me know if you would like me to refine that allacation.The result would be a slight decrease in owner's costs to date and slight increases in the other categories. A more specific breakdown of our encumbrances and expenditures to date follow: Encumbered |Expended to Comments date Engineering (Raytheon)$5,420,901 |$4,186,184 |Remaining balance mostly construction related. Permitting (Foster-Wheeler)$2,165,362 $1,924,214 |Remaining balance mostly construction related. Power Supply Planning Study $258,357 $165,438 |Remaining balance mostly future(R,W.Beck)updates to report. Geotechnical (Dames &Moore)$139,297 $139,297 |Micropile design resulted incancelingfurthergeotech. Lake Grace Allematives Study $54,600 $54,600 |Complete.(R.W.Beck) USS.Forest Service review $57,291 $45,574 |Continuing. All other expenditures $603,656 {|Meteorological,timber cruise,other prof.services,KPU costs,etc. TOTAL EXPENDED TO $7,118,963 DATE (7/31/98)' Agsumes project Is bid in spring of 1808 for two years of construction,Assumes work will ba done under four independent contracts.The four contracts would be broken down to three far the tranemiesion line and one for the substation work, pope wt SEP.-18'98 (FRI)15:42 KPU ss [INI STRATION TEL 7 225 1000 P.003 a ..KARO °}'(OC:} CO.ROTLAKETYEE-SWAN LAKE TRANSMISSION LINE INTERTIE JH-FePROJECTCAPITALCOSTESTIMATES(1997$)AD rep COST {TEM j January 1098 Estimate With minimum With maximumwieedomesticamberexporttimbercreditcredit Cons lon Cos A.Transmission Line (57.5 milas) Segment 1:Tyee Laka -Ball Arm $20,203,988 $20,203,988 $20,203,988 Segment 2:Bel!Arm -Behm Narrows $4,213,145 $4,213,145 $4,213,145 Segment 3:Behm Narrows -Shrimp Bay $9,665,300 $9,665,300 $9,665,300 Segment 4:Shrimp Bay-Swan Lake $18,955,576 $18,955,976 $18,955,976 Subtotal of A.$53,038,410 $53,038,410 $53,038,410 B.Switchyards /Substations Tyee Lake Switchyard $300,000 $300,000 $300,000 Swan Lake Switchyard $1,200,000 $1,200,000 $1,200,000 Bailey Substation $750,000 $750,000 $750,000 Subtotal of B.$2,250,000 $2,250,000 $2,250,000 Subtotal 1 (Construction costs A +B)$55,288,410 $55,288,410 $55,288,410 C.Patential credit for timber ($4,300,000)($11,300,000) Subtotal2 (construction casts A +B +C)$55,288,410 $50,988,410 $43,988,410 Cther Costs Licensing/Penmitting $2,000,000 |™$2,000,000 $2,000,000 ™Engineering/Investigations $5,500,000 $5,500,000 $5,800,000 Const Mgmt.at §.0%of Const.Cost:$2,764,420 >$2,549,420 $2,199,420 Right af Way Costs (Stumpage)$48,000 $48,000 $48,000 Contingency at 15.0%of Const.Cost:$8,293,264 $7,648,261 $6,598,264 Subtotal3 (construction +other costs)$73,894,092 $68,734,092 $60,334,092 Owners Cost at 4.5%of Subtotal 3 $3,325,234 *$3 093,034 $2,715,034 Subtoral 4 (constr.+ather +owner costs)$77,219,326 $71,827,126 $63,049,126 OTAL ESTIMA cT.cos $77,219,326 $71,827,126 $63,049,126 - » SEP.-18'98(FRI)15:42 KPU INISTRATION TEL 225 1000 P,004 .a)) LAKE TYEE -SWAN LAKE TRANSMISSION LINE INTERTIE PROJECT CAPITAL COST ESTIMATE (1997$) (By agaymed contracting breakcawn) TransmiselonROW,Clearing}Foundations &Pile Transmission lineine/ellcopter Substations&Logging Caps pads etc,matarials Dyrect Cost Estimate:11,343,591 11,122,439 |22,374,045 8,108,695 2,250,000 Const.Mgmt.at 5.0%of Const.Coat 587,180 556,107 4,118,702 409,932 112.500 Contingancy at 15.0%of Const Coat:1.701,539 1,688,321 3,356,107 1,225,785 337,500 Subtotal 13,612,308 13.346.567 26,848,854 6,838,362 2,700,000 Owner's cost at 4.5%of subtotal:612,554 600,596 1.208.188 442,726 121,500 Subtotal by Contract Package;14.224,663 13,847,162 25,057,052 10,281 088 2,821,500 Subtatal all consguction related costs:$69,331,684 Fored Owner Cost Elements Licansing/Permitting 2,000,000 Engineering/Invectigations -§,500,000 Stumpage 48,000 Owner's cost @ 4.5%of fixad casts 339,650 Subtotal Owner Fixed Cost Elaments:57,887,660 Total Project Cost On Above Bagis With No Timber Credit,577,218,326 Considering Credit for Timber:” @:34,300,000 $71,827,126 @:$11,300,000 $63,049,126 *Nota: Cansidaring timber credit as stated the contract package for claaring will ba reduced to a range between $8.8 milion and §54,663 on the above bauia. LAKE TYEE -SWAN LEKT TRANSMISSION LINE INTERTIE PROJECT ESTIMATE SUMMARY 19875 (2/98) TOTAL TOTAL |MATERIAL]LABOR &EQUIP LABOR SUBCONT {HELICOPTERS SE S-AMOUNT |(MH)total unit |total mh |total total total 3EGMENT NO.1 20,203,980 |89,269]3648042 145 |46,555,947 |69,621 |6,450,692 {4,141,234 6,263,820iEGMENTNO24213,145}16059|782,584 154 |3,430,561 |15,923 |1,458,797 639,470 1,332,294|sEGMENT NO.3 9,665,300 |36,214]1,629,258 140 |6,036,002 |35,126 }3,187,993]1,506,296 3341 3'EGMENT NO.4 18,955,976 |68,3564 3,107,606 146 {15,648,370 [68,356 |6.240436]3,344,080 5,263,855'OTAL >>>>>>>53,038,410 |189,896 |9,167,530 585 [43,870,880 [189,026 [17,038,118 |9,631,079 17,207,683 fob &demob 1 7,420779|2400]280,000]|.1,140,779|2400]227,779]913,000} 'OW,Clearing |2,879,787 |27,508}71,816]|_2,807,972 |27,508 |2,610,733 |__197,239| icropile foundations :7,121,548 7,121,548 7,421,548vilecaps:6.013,800{23362]2,363,740 3,650,060 |23,362 |2,217,208 1,432,851 teel pole struc'ave.wt per struc =11086 Ib 11,070,405 |70,909]3,943,757 7,126,648 |71,461 |5,890,217 490,800 755,631 sulator_units:41,076,137 9,228)200,325 875,841)9,228[875.814 ond &insul hdwre assemblies:2,203,132 24,211 150,039 2,073,094 f 21,2114 2,013,004 iscellaneous assembiles :1,183,575 8030]421,426 762,149 [8,030}762,149 'ounding assemblies:487,603 1,622 33,700 153,903 |1,622 153,903onductor.3,438,047 15,037 |1,522,727 1,915,a20 |15,037 |1,427,108 250,643 237,600 slicopler pads |_467,342]2800]749000]93,526]327,342/2800]265742] 28,000[33,600 anges transportation{matenal &equipment)623,880 6,698 629,880 629,880 slicopters:7,242,000 7.242,000 7,242,000| aging (removal logs nethelicopter)|8,104,374]8,192|_{8,104,374 [8,104,374]6368]604,374|}7,500,000 Totat:$53,038,410 ALASKA1412jp.xis QO0TS$?TahNOTLVMLSINI=fdCheSt(1Yd)868T-"das$00'd SEP 14 1998 AlaskaWETCHIKAN PUBLIC UTILITIES 2930 TONGASS AVENUE and Export Authoriy 99901 TELEPHONE 907-226-1000 Ec.OverELECTRICTELEPHONEWATERSeptember8,1998 KAL "Cdn Randy Simmons AIDEA 480 W.Tudor Road Anchorage,AK 99503-6690 Dear Mr.Simrn Ketchikan Public Utilities has been investigating a possible financing scheme for the Swan- Tyee Intertie.We have been considering taking advantage of a $20 million state loan,backed by the City of Ketchikan,with the rest of the Intertie cost covered by grant funding.This plan also required additional debt in the form of a "start-up loan”as our projected sales in early years may be exceeded by our debt service obligations.Finally,this plan required some consideration for Ketchikan's risk and expenses in a Four Dam Pool power sales agreement, which I have discussed at the PMC meetings on a couple of occasions. The City of Ketchikan retained Mr.Alan Dashen to assess the City's ability to accept this debt service.His report to us is attached for your information,but it is fair to say that our ability to accept this level of debt is doubtful. While this is not encouraging,I am confident that with your continued assistance we can find a better scheme to finance and construct this project.As you know,if we can find a way to take advantage of the funding that has already been earmarked for the project,our rates will all benefit from the additional energy sales. I look forward to continuing the productive meetings and discussions we have had recently regarding financing of the Swan-Tyee Intertie.Please contact myself or Richard Trimble if we can provide any additional information about this report or the project. incerely, John A.Magyar General Manager JAM:klo Attachment G:\USER\KORRYO\WINWORD\DATA\007-C5LT.DOC eee itiesCasedSaf.BayA.DASHED {S§SSOCIATESoe August 17,1998 -,JPJECEIVE D)AUG 2 2 1998 MEMORANDUM . KPU Manager's Office TO:Robert E,Newell,Jr,CPA KETCHIKAN PUBLIC UTILITIES John Magyar Rich Trimble FROM:Alan Dashen - SUBJECT:Ketchikan Public Utilities Debt for the Tyee-Swan Lake Intertie Included in the financing plan developed for KPU to finance the Tyee-Swan Lake Intertie are two loans which would be secured by a pledge of revenues of KPU and would requireavoteoftheCity.The first loanis for $20 million from the State of Alaska and is repayable over 15 years at an interest rate of three percent.The second loan,while not committed to,was planned to be from AIDEA and would be used as a start-up loan.This | start-up loan would be used to finance a portion of the cost of the intertie debt and operations during the first years of operation so that the net cost of power from the intertie would not exceed the cost of power that KPU currently is paying for Four Dam Pool power from Swan Lake. As shown on Enclosure 1,using the City's base load growth forecast,the AIDEA loan balance would increase annually to a maximum of $11,416,873 in 2014 and would not be repaid until 2020.This includes the assumption that the City would receive no "development charges”for proceeding with the intertie.It is,at best,unlikely that such a loan agreement would be agreed to by the City,AIDEA,and the Four Dam Pool Participants who must approve any power purchase agreement,and,when this was discussed with the Ketchikan City Council in February,we recommended that the City pursue additional grant money to reduce or eliminate the $20 million State loan and the AIDEA start-up loan. These loans also will affect KPU's ability to issue additional debt,and this memorandum is in response to your request of an analysis of this impact. While the intertie provides KPU with a good long term power supply,presumably at the same cost of power as Swan Lake,the financing plan as presented negatively impacts KPU and the Electric Utility.These negative impacts include the following: 203 BELLEVUE Way NE Suite xo.14 BELLEVUE,WA 98004 TEL.425-4+52-9550 FaNx.425-452-9552 1.In the near term,the actual cost of power to the Electric Utility may increase with the Intertie.The Intertie power initially will offset diesel power,and,while diesels are not a good long term solution to the City's power supply,the short term impact of utilizing Intertie power rather than the City's diesels is slightly higher generation costs. The current Four Dam Pool power rate is approximately 6.8 cents/kWh,of which 4.0 cents/kWh is fixed.Since the variable portion was recently increased,we have assumed that the variable portion will escalate at 3.0%annually starting in 2000,The incremental diesel fuel cost to generate power currently is approximately 4.8 cents/kWh,based on 14.07 kWh/gallon of fuel and a fuel cost of $0.67/gallon.In addition,R.W.Beck estimates variable O&M at 1.3 cents per kWh. The projected KPU Intertie purchases range from 8,900,000 kWh:in 2001 to -57,700,000 kWh in 2028.In 2002,the year used herein for comparison purposes, intertie purchases are projected to be 11,000,000 kWh.In that year KPU would pay $776,560 for intertie power compared to $671,000 for diesels.Note that this does not assume an increase in diesel fuel above $0.67 per gallon. 2.As of December 31,1997,KPU had outstanding $36,925,000 in debt.The $20 million State loan significantly increases the debt of the system.A ratio used by Moody's Investors Service to measure the leverage of a utility is long term debt to net utility plant plus current assets.Based on 1997 year end financial statements for KPU, this ratio (expressed as a percentage)currently is approximately 38%.Ifthe debt is increased by $20 million,the ratio increases to 60%,which while still acceptable reflects a more highly leveraged utility. Under the financing plan,KPU would have outstanding both the $20 million State loan and the startup loan.However,as the start-up loan increases,the State loan decreases.Further,the startup loan probably would not be viewed as long term debt so it would not affect the above ratio:Consequently,only the long term State loan is included in this calculation. 3.The additional borrowing will have an effect on debt service coverage,assuming that the State and AIDEA loans are on parity with KPU's outstanding debt.Conceptually, the only portion of the State loan which should be included as debt service is that part _not paid by the start-up loan.In practice,however,a rating or bond insurance analyst will be skeptical of a deal where a start-up loan is used to finance the intertie for so many years,with repayment based on continued load growth.A more conservative analytical approach would be to not consider the start-up loan and analyze the impact of the State loan assuming that it is repaid from revenues of KPU., Enclosure 2 shows the effect on debt service coverage for both approaches. Alternative (A)shows the income statement and debt service coverage for 2002 as forecast in the official statement for KPU's 1997 revenue bonds.Alternative (B) assumes that only that portion of debt service not paid by the startup loan is included, and Alternative (C).assumes that all the State loan is included.Also included in Alternatives (B)and (C)is the slightly higher assumed power cost with the intertie. The original forecast of debt service coverage,Alternative (A)is 1.59.This decreases to 1.44 for Alternative (B)and 1.25 for Alternative (C). If KPU pursues these loans as part of the intertie financing,we would recommend that the loans be made junior in lien to the system's outstanding debt.This will significantly mitigate the impact of these loans on the ability of KPU to issue additional debt.With the loans as junior lien,the debt service coverage on the senior lien debt would not be directly impacted.However,rating analysts typically will also calculate debt service coverage based on total debt outstanding,both junior and senior lien. Clearly,utilizing the State loan will have an impact on KPU's ability to issue debt,both for the reasons outlined above and because of the potentially very long pay back of the startup loan.The intertie is a more viable power supply to the City if additional grant money is available to reduce or eliminate the State and AIDEA loans. While this analysis has focused on the intertie,any new power supply resources financedbyKPUwillaffectfuturepoweringoftheutility.However,because the intertie is a large investment with a slow pay back,other resources may have less of an impact on KPU future borrowing. SWAN-TYEE INTERTIE REVENUES &EXPENSES BASE LOAD GROWTH MEDIUM PMP&L INTERTIE FOUR DAM POOL RATE SALES PMC POWER RATE INTERTIE EXPENSES NET REVENUES Additional Intertie |Debt Service O&M Tyee State Ending Net PaymentSales$0.04/kWh $0.028/kWh Expense Intertie Loan Development Net Balance on to Year (MWh)(1)}Fixed Escalated (2)|$.0025/kWh O&M(2)$20,000,000(3)Charges(4)ProfifLoss AIDEA loan Pool 2001 8,9001$356,000 264,376 |$22,250 $141,764 $1,675,332 §$-$(1,218,970)$1,279,918 2002 11,000 440,000 336,560 27,500 146,017 1,675,332 -(1,072,289)2,469,818 2003 12,600 504,000 397,080 31,500 219,609 4,675,332 -(1,025,361)3,669,938 2004 14,100 564,000 457,681 35,250 154,909 1,675,332 -(843,810)4,739,435 2005 15,600 624,000 521,562 39,000 159,556 1,675,332 -(728,326)5,741,149 2006 17,100 684,000 588,864 42,750 164,343 1,675,332 --(609,561)6,668,246 2007 =18,700 748,000 663,281 46,750 169,273 =1,675,332 -(480,074)7,505,737 2008 20,300 812,000 741,633 50,750 415,057 =1,675,332 -(587,506)8,497,905 2009 21,900 876,000 824,090 54,750 250,026 .1,675,332 -(280,018)9,216,819 2010 23,500 940,000 910,826 58,750 257,527 :1,675,332 -(140,783)9,825,4822011+=25,100 1,004,000 1,002,025 62,750 265,253 :1,675,332 -2,690 10,313,932 2012 26,800 1,072,000 1,101,988 67,000 273,210 .1,675,332 -158,446 10,663,261 2013 28,500 1,140,000 1,207,047 71,250 681,370 -1,675,332 -(80,905)11,281,374 2014 30,100 1,204,000 1,313,055 75,250 358,311 1,675,332 -408,162 11,416,873 2015 31,900 1,276,000 1,433,324 79,750 369,060 1,675,332 -585,181 11,373,276 2016 33,600 1,344,000 1,554,999 84,000 380,132 ,-2,434,867 9,385,330 2017 35,400 1,416,000 1,687,452 88,500 391,536 --2,623,416 7,100,010 2018 37,100 1,484,000 1,821,542 92,750 1,158,090 --2,054,702 §,297,573 2019 38,900 1,556,000 1,967,216 97,250 517,827 |-2,808,139 2,508,905 2020 40,800 1,632,000 2,125,201 102,000 533,362 -3,121,839 -612,933 2021 42,700 1,708,000 2,290,893 106,750 549,363 -3,342,781 3,342,781 2022 44,500 1,780,000 2,459,089 111,250 565,844 -3,561,995 3,561,995 2023 46,600 1,864,000 2,652,390 116,500 1,557,850 -2,842,040 .2,842,040 2024 48,900 1,956,000 2,866,801 122,250 600,303 -4,100,248 4,100,248 2025 51,100 2,044,000 3,085,651 127,750 618,312 ,-4,383,589 4,383,589 2026 53,300 2,132,000 3,315,052 133,250 636,861 -4,676,940 4,676,940 2027 55,500 2,220,000 3,555,440 138,750 655,967 -4,980,722 ,4,980,722 2028 57,700 2,308,000 3,807,267 144,250 2,994,269 -2,976,748 2,976,748 *|ainsojoug. Footnotes: (1)Net kWh energy which is available from Tyee after Wrangell &Petersburg loads. (2)Based on 6.8 cents/kWh in 1998,escalated at 3.0%annually starting in 2000. (3)$20,000,000 repaid over 15 years at an interest rate of 3%. (4)Estimated at 10%of PMC power rate. (5)State loan borrowing to maintain cost of power at Four Dam Pool Rate.Cumulative balance shown is end of year and assumes a borrowing rate of 5%. Operating Revenues Existing Revenues Electric Telephone Water Other Subtotal existing revenues Additional Operating Revenues Electric Water Subtotal additional revenues Total Operating Revenues Operating Expenses Electric O&M Telephone O&M Water O&M Customer service Insurance Administrative Allocated City expense Total Operating Expenses Operating Income (Loss) Non-Operating Revenues Interest earnings Revenues available for debt service Debt Service Outstanding Bonds The Bonds Additional Bonds State Debt Total Debt Service Available for other purposes Payments in Liew of taxes Net Cash Flow Debt Service Coverage on All Bonds Ketchikan Public Utilities Projected Operating Results (a) As Forecast 2002 $14,430,230 10,030,660 1,567,539 210,202 $26,238,631 $2,597,441 282,157 $2,879,598 $29,118,229 $11,183,049 3,549,000 1,226,160 725,719 608,619 678,828 1,181,786 $19,153,161 $9,965,068 $472,704 $10,437,772 $3,322,375 730,515 2,528,000 $6,580,890 3 3,856,882 $710,635 $3,146,247 1.59 (B) With Portion of New State Loan 2002 $14,430,230 10,030,660 1,567,539__210,202$26,238,631 $2,597,441 282,157 $2,879,598 $29,118,229 $11,288,609 3,549,000 1,226,160 725,719 608,619 678,828 1,181,786 $19,258,721 $9,859,508 $472,704 $10,332,212 $3,322,375 730,515 2,528,000 603,043 $7,183,933 $3,148,279 $710,635 $2,437,644 1.44 Enclosure2° * (C) With All of New State Loan '2002 $14,430,230 10,030,660 1,567,539 210,202 $26,238,631 $2,597,441 282,157 3 2,879,598 $29,118,229 $11,288,609 3,549,000 1,226,160 725,719 608,619 678,828 1,181,786 $19,258,721 $9,859,508 $472,704 $10,332,212 $3,322,375 730,515 2,528,000 1,675,332 $8,256,222 $2,075,990 $710,635 $1,365,355 1.25 'Oct-08-88 02:06pm =From-OFFICE VERNOR 9074653532 T7648 P.O1/03 F 740 CLFAXTRANSMITTALbUWy STATE OF ALASKA OFFICE OF THE GOVERNOR OFFICE OF THE GOVERNOR PO BOX 110001 LAL JUNEAU,AK 99811-0001 TONY KNOWLES GOVERNOR Telephone:(907)465-3500 FRAN ULMER Fax:(907)465-3532 LIEUTENANT GOVERNOR ||Date:01/09/98 To:RANDY SIMMONS FaxNo.:269-3020 Pages:3 Total )dst | From:Tina Eckles vo E-mail:Tina_Eckles@gov:.state.ak.us Comments:Courtesy bcc regarding Governor's letter to Mayor Egan and Members of the Southeast Alaska Conference of Mayors letter mailed out.Thank you.Tina If you received this FAX in error,please immediately notify the sender by telephone,and return thisFAXtothesenderattheaboveaddress.Thank you. Oct-08-88 02:06pm -From-OFFICE|VERNOR 9074653532 T7648 =P.02/03-F-740 October 7,1998 The Honorable Dennis Egan Mayor of the City and Borough of Juneau and Chairman of the Southeast Alaska Conference of Mayors 213 Third Street,Suite 124 Juneau,AK 99801 Dear Mayor Egan and Members of the Southeast Alaska Conference of Mayors: Thank you for your letter regarding the concept of a Southeast intertie grid.I agree economic growth cannot be sustained for Jong without low-cost,reliable electric power. Further,I believe there is no fundamental conflict between economic growth and environmental protection.The evidence is abundant throughout the world that prosperity is one of the surest paths to long-term environmental health. There is every reason to believe the economy and population of Southeast Alaska will continue to grow given its energetic people,its resources,its temperate climate,and natural beauty.Existing hydroelectric projects already supply power to most of the population in the region;but the capacity of these projects is already strained in many cases and will,to an increasing extent,be outstripped by demand as time goes on.One of the great resources of Southeast Alaska is its hydroelectric potential:there are many additional hydroelectric prospects throughout the region that can be developed as the economy grows,but they are not necessarily located where the power will be needed.An intertie grid will allow the most cost-effective projects to be developed in the future, regardless of their location,by providing the means to deliver power wherever the demand for it arises. "Oct-08-98 02:07pm --From-OFFICE VERNOR 8074653532 T-648 =P.03/03 +740 The Honorable Dennis Egan October 7,1998 Page 2 The Southeast intertie concept is technically sound.I'm encouraged by and supportive of the possibilities it opens up for Southeast communities.An intertie grid would consist of many individual Jinks,each of which could be built as the opportunity arises. I appreciate your continuing support for this important objective. Sincerely, S/S Tony Knowles Tony Knowles Governor ce:Lonnie Anderson,Mayor of the City of Kake Albert Dick,Mayor of the City of Hoonah Stan Filler,Mayor of the City and Borough of Sitka Jerry Lapp,Mayor of the City ofHaines John "Jack”Shay,Mayor of the Ketchikan Gateway Borough Maxine Thompson,Mayor of the City of Angoon Bob Weinstein,Mayor of the City of Ketchikan Jim Shull,Acting Mayor of the City of Saxman Pau]Anderson,Deputy Mayor of the City of Petersburg TK/TV/MY/TT/jk/te 2101.DCRA Misc.27257.doc Keith Laufer From:Dennis McCrohan Sent:Thursday,September 17,1998 11:49 AM To:Keith Laufer Subject:RE:AEA Policy Outline Keith I got the wrong data.The unencumbered funds remaining are $1.9M.The unexpended funds are $3.2M. Dennis ---Original Message-- From:Keith Laufer Sent:Thursday,September 17,1998 9:43 AM To:Dennis McCrohan Subject:AEA Policy Outline |need a couple of pieces of information from you to complete the outline.Could you let me know the unexpended amount of the Southeast Energy Fund monies.Also do you have the current estimate for the Southeast Intertie? Thanks for your help. Keith Laufer From:Dennis McCrohan Sent:Thursday,September 17,1998 11:33 AM To:Keith Laufer Subject:RE:AEA Policy Outline Keith Unexpended monies for the SE Intertie from State grant funds are approximately $4M. Total project cost is approximately $73M. Dennis --Original Message---From:Keith Laufer Sent:Thursday,September 17,1998 9:43 AM To:Dennis McCrohan Subject:AEA Policy Outline |need a couple of pieces of information from you to complete the outline.Could you let me know the unexpended amount of the Southeast Energy Fund monies.Also do you have the current estimate for the Southeast Intertie? Thanks for your help.