The URL can be used to link to this page

Home My WebLink About06.30.2020 IMC.ExecutedMinutesDocuSign Envelope ID: 863D6EAA-A1C2-413C-96BD-95D0051E4B4C Alaska Intertie Management Committee MEETING MINUTES Tuesday, June 30, 2020 Anchorage, Alaska 1. CALL TO ORDER ALASKA ENERGY AUTHORITY Chair Anna Henderson called the telephonic meeting of the Alaska Intertie Management Committee to order on June 30, 2020, at 9:03 a.m. A quorum was established. 2. ROLL CALL FOR COMMITTEE MEMBERS Members present: Anna Henderson - Chair (Municipal Light and Power (ML&P)) (phone); Ed Jenkin (Matanuska Electric Association (MEA)) (joined at 9:25 a.m.) (phone); Brian Hickey (Chugach Electric Association (CEA)) (phone); John Burns (Golden Valley Electric Association (GVEA)) (phone); and Kirk Warren (Alaska Energy Authority (AEA)). 3. PUBLIC ROLL CALL Public present: Betty Caudle (Accu-Type Depositions) (phone); Ryan Garner (AEA) (phone); David Lockard (AEA) (phone); TW Patch (AEA); Beazit Redzepi (AEA); Curtis Thayer (AEA); Aimee Sudbeck (AIDEA); Crystal Enkvist (Alaska Power Association) (phone); Don Maynor (ARECA Insurance Exchange) (phone); Lee Thibert (CEA) (phone); Russ Thornton (CEA); Stefan Saldanha (Department of Law); Dan Bishop (GVEA) (phone); Larry Jorgenson (HEA) (phone); Andrew Patrick (HEA) (phone); David Pease (MEA) (phone); Jeff Warner (ML&P); Kirk Gibson (McDowell Rackner & Gibson PC) (phone); Christina Hunter (RCA); Dana Archer (phone); and Brian Wells (phone). 4. PUBLIC COMMENTS - None 5. AGENDA APPROVAL MOTION: Mr. Burns made a motion to approve the agenda. Motion seconded by Mr. Warren. Mr. Warren requested a friendly amendment removing the word "Amendment' from the titling of Item 7A., so that it reads "FY21 IMC Budget, Motion to Approve." There was no objection to the friendly amendment. 813 West Northern Lights Boulevard, Anchorage, Alaska 99503 T 907.771.3000 Toll Free 888.300.8534 F 907.771.3044 DocuSign Envelope ID: 863D6EAA-A1C2-413C-96BD-95D0051E4B4C A roll call vote was taken, and the agenda, including the friendly amendment to remove the word "Amendment" from the titling of Item 7A., was approved unanimously, with Mr. Jenkin absent. 6. PRIOR MINUTES - March 27, 2020 MOTION: Mr. Hickey made a motion to approve the Minutes of March 27, 2020. Motion seconded by Mr. Burns. A roll call vote was taken, and the Minutes of March 27, 2020 were approved unanimously, with Mr. Jenkin absent. 7. NEW BUSINESS 7A. FY21 IMC Budget, Motion To Approve Mr. Warren introduced Beazit Redzepi, AEA, who gave a presentation on the FY21 IMC Budget. Mr. Redzepi reminded members the budget was amended at the previous IMC meeting. The budget has been posted for public comment for 30 days. No comments have been received. The total budget is $2,727,385. Mr. Hickey inquired regarding the reason a shortage is shown in the budget of $556,839. He asked for explanation regarding the MEA Equipment Repair and Replacement line item under FERC 571 for $850,000. Chair Henderson added a question and asked if there is a plan to use any of the $1.6 million surplus for the FY20 Budget shortfall. Mr. Redzepi explained the Intertie budget does not maintain a balance between revenues and expenses. If there are excess funds at the end of the year, the utilities will receive a refund. If there is a shortage of funds at the end of the year, the utilities will pay an additional amount. Mr. Redzepi believes the $850,000 line item was for the marker ball replacement project. He noted discussion occurred at the previous meeting regarding additional funding for this line item because the work is being delayed until FY21. Chair Henderson requested Mr. Warner, Chair of Intertie Operating Committee (IOC), provide additional explanation regarding the marker ball project during FY20 and FY21. Mr. Warner explained the project was originally scheduled to occur in FY20 and in FY21. Due to project delays in securing all the materials and delays due to Covid-19, the Maintenance Subcommittee determined none of the work could be completed in FY20. The request was presented at the previous meeting to move all of funds into the FY21 budget. The winning bid for the marker ball replacement project came in at $693,000. MOTION: Mr. Warren made a motion that the Alaska Intertie Management Committee submit the fiscal year 2021 budget as presented to Alaska Energy Authority for final approval. Motion seconded by Mr. Hickey. Alaska Energy Authority Page 2 of 4 DocuSign Envelope ID: 863D6EAA-A1C2-413C-96BD-95D0051E4B4C A roll call vote was taken, and the motion that the Alaska Intertie Management Committee submit the fiscal year 2021 budget as presented to Alaska Energy Authority for final approval was approved unanimously, with Mr. Jenkin absent. 8. COMMITTEE REPORT 8A. OC Report Mr. Warner gave a detailed review of the I0C meeting report dated June 30, 2020, included in the Board packet. The IOC met on June 25�h and listed several assignments for the 10C and seven subcommittees, as reflected specifically in the report. Mr. Warner discussed the June 4th Douglas breaker B-1 trip and indicated a three-phase fault near Cantwell. The north and south are separated and Anchorage is still tied to the Kenai. The oscillations occurred for about five minutes. Mr. Hickey noted there was a question from the previous meeting regarding cost allocation at Cantwell between transmission and distribution. He suggested the question be assigned to the Maintenance Subcommittee to address. There was no objection. Mr. Jenkin informed he joined the meeting. Mr. Warner discussed the 10C reviewed the cost allocation at Cantwell and deemed that the Cantwell equipment, including the distribution equipment is owned by AEA. The cost allocation would be applied to those assets at 100% on AEA. Mr. Hickey understood that research of the agreement would occur to determine if there was an allocation between GVEA distribution and Intertie assets. He assumes this occurred. Chair Henderson asked Mr. Warner if Kirk Gibson, McDowell Rackner & Gibson PC, was involved in the discussion to review the agreements and come to the determination that the distribution was owned by AEA. Mr. Warner indicated Mr. Gibson was not involved. Mr. Warner stated his information is only a preliminary response to the IMC on this issue. He believes it would behoove the IMC to further discuss these issues promptly because they will affect the FY22 budget. Mr. Jenkin suggested the legal review include the determination of who is responsible, AEA or GVEA, for the maintenance on the equipment and how that applies to providing an alternate service to the load fed from that substation. 8B. Budget Report Mr. Redzepi discussed the Budget to Actual Report dated July 1, 2019 through April 30, 2020. The total revenues collected for this period are $2,268,489. The total expenses incurred for this period are $789,727. The estimated surplus for this time period is $1,478,762. There were no questions. Alaska Energy Authority Page 3 of 4 DocuSign Envelope ID: 863D6EAA-A1 C2-413C-96BD-95D0C51 E4B4C 9. MEMBERS COMMENTS Chair Henderson recognized an item on the agenda for committee assignments was not included. She requested clarification from Mr. Gibson how to proceed. Mr. Gibson advised the agenda could either be amended or Chair Henderson could make committee assignments from the Chair's position. Mr. Jenkin noted the previous assignments have been communicated well. He requested the email address that AEA has on file be corrected to edward.jenkin, rather than ed.jenkin. The email correction was noted. Mr. Hickey expressed appreciation to Mr. Redzepi and Mr. Warner for their work on the budget and work on committees. Mr. Warren echoed Mr. Hickey's comments, and expressed appreciation to Chair Henderson. Chair Henderson echoed the appreciation of the previous comments. Chair Henderson assigned Mr. Gibson to work with the Operating Committee on a legal review of the Intertie Agreements relating to the ownership and demarcation of the distribution and transmission facilities in Cantwell, and a legal review of the obligation to provide alternate sources of power as Mr. Jenkin had questioned. Mr. Gibson agreed. 10. NEXT MEETING DATE - July 24, 2020 Chair Henderson informed the next meeting is Friday, July 24, and will include election of new officers. 11. ADJOURNMENT There being no further business of the AIMC, the meeting adjourned at 9:44 a.m. CG W. � L}k�cvsew 9/25/2020 130N]BREF3GC]... Anna Henderson, Chair e ptary ✓ Alaska Energy Authority Page 4 of 4