HomeMy WebLinkAbout2020-01-15 AEA Agenda and docs
813 West Northern Lights Boulevard, Anchorage, Alaska 99503 | P 907.771.3000 | Toll Free 888.300.8534 | F 907.771.3044 | WWW.AKENERGYAUTHORITY.ORG
REDUCING THE COST OF ENERGY IN ALASKA
Alaska Energy Authority
Board Meeting
Wednesday, January 15, 2020
Immediately following the 10:00 a.m. AIDEA Board Meeting
AGENDA
To participate via teleconference dial 1-888-585-9008
and when prompted, enter code 264 -793-729#
1. CALL TO ORDER
2. ROLL CALL BOARD MEMBERS
3. ROLL CALL STAFF, PUBLIC
4. AGENDA APPROVAL
5. PUBLIC COMMENTS (3 minutes per person) see call in number above
6. PRIOR MINUTES – December 4, 2019
7. NEW BUSINESS
A. Resolution No. 2020-01 FY21 Operating & Capital Budget Submission Ratification
B. Motion to Approve 2019 Audit as Presented on December 4, 2019
8. OLD BUSINESS - HEA SQ Line Repairs
9. EXECUTIVE SESSION – Discuss confidential matters related to Bradley Lake and AEA
personnel matters
10. DIRECTOR COMMENTS
A. Commercial Property Assessed Clean Energy (C-PACE)
B. Renewable Energy Fund Advisory Committee (REFAC)
C. List of Legislative Reports Due to the Legislature
D. Railbelt Reliability Council (RRC) Update
E. Rural Power Systems Inventory & Assessment
F. 5.5 Mile Update
G. Bradley & Intertie Depreciation Schedules
H. Community Outreach Schedule
I. Dashboard & Loan Report
J. Warehouse Issues
K. Articles of Interest
L. Next Regularly Scheduled AEA Board Meeting Wed. March 4, 2020
11. BOARD COMMENTS
12. ADJOURNMENT
AEA Resolution No. 2020-01 FY21 Operating Budget & Capital Budget
Page 1 of 2
ALASKA ENERGY AUTHORITY
RESOLUTION NO. 2020-01
RESOLUTION OF THE ALASKA ENERGY AUTHORITY
RATIFYING GOVERNOR’S SUBMISSION OF FY21
OPERATING BUDGET AND CAPITAL BUDGET INCLUSIVE
OF THE AUTHORITY’S PROPOSED BUDGETS
WHEREAS, the operating and capital budgets of the Alaska Energy Authority (“the
Authority”) are subject to the Executive Budget Act;
WHEREAS, the proposed FY21 operating and capital budgets for the Authority were
included in the Governor’s State operating and capital budgets submitted to the Alaska State
Legislature (“the Legislature”) and are set out in Attachment A;
WHEREAS, the Governor’s State operating and capital budget submissions, including the
Authority’s proposed operating and capital budgets, are subject to approval by the Legislature; and
WHEREAS, the Board provides oversight for the Authority and its finances.
NOW, THEREFORE, BE IT RESOLVED BY THE ALASKA ENERGY
AUTHORITY AS FOLLOWS:
Section 1. The Authority’s FY21 operating and capital budgets as proposed in the
Governor’s submissions to the Legislature are ratified and approved. The Authority’s final FY21
operating and capital budgets are subject to approval by the Legislature.
Dated at Anchorage, Alaska, this 15th day of January 2020.
AEA Resolution No. 2020-01 FY21 Operating Budget & Capital Budget
Page 2 of 2
ATTEST
[SEAL]
Chair
Secretary
Attachment A
Alaska Energy Authority - Statewide Railbelt Energy Plan FY2021 Request:
Reference No:
$3,000,000
62884
AP/AL: Appropriation Project Type: Energy
Category: Development
Location: Statewide House District: Statewide (HD 1-40)
Impact House District: Statewide (HD 1-40)Contact: Curtis Thayer
Estimated Project Dates: 07/01/2020 - 06/30/2025 Contact Phone: (907)771-3000
Brief Summary and Statement of Need:
The Bulk Electrical System in the Railbelt region of the state has gone through tremendous change
since the completion of the last Railbelt Integrated Resource Plan (RIRP) in 2010. Multiple dockets
have been opened at the Regulatory Commission of Alaska (RCA) and over $56 million in state funds
have been appropriated for improvements consistent with the RIRP. Institutional reform is necessary
to address increases to Railbelt ratepayers’ energy costs.
Funding:FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Total
1012 Rail
Enrgy
$3,000,000 $3,000,000
Total:$3,000,000 $0 $0 $0 $0 $0 $3,000,000
State Match Required One-Time Project Phased - new Phased - underway On-Going
0% = Minimum State Match % Required Amendment Mental Health Bill
Operating & Maintenance Costs:Amount Staff
Project Development: 0 0
Ongoing Operating: 0 0
One-Time Startup:0
Totals: 0 0
Prior Funding History / Additional Information:
Project Description/Justification:
The statewide energy plan comprehensively addresses the following:
Identify institutional reform mechanisms that most effectively mitigate cost increases in the1.
railbelt region of the state.
Investigate the best use of state funds to leverage private investment in the most beneficial2.
public private partnership (3P) opportunities in the energy markets of the railbelt region of the
state.
Investigate the potential to un-constrain the lowest cost power generation (Bradley Lake3.
Hydroelectric facility) in the Railbelt through existing and planned power pooling arrangements
and other potential cost saving measures.
State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development
FY2021 Governor Reference No: 62884
Page 1 Released December 11, 2019
Alaska Energy Authority - Statewide Railbelt Energy Plan FY2021 Request:
Reference No:
$3,000,000
62884
Investigate the most efficient and effective suite of priorities for a redundant transmission4.
system consistent with transmission planning standards used throughout the contiguous United
States.
With the State of Alaska addressing the above items, the burden on ratepayers decreases.
Discernable costs are mitigated by institutional reform. For example, the Swan Lake fire precipitated a
burden to ratepayers exceeding $10 million dollars in 2019. Similar burdens in the future will be
addressed and mitigated with a statewide energy plan in place. Previous and current initiatives have
identified the need for these reforms, but have lacked the necessary incentive and disincentive
regulatory framework to bring all effected stakeholders together to implement the necessary reforms.
State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development
FY2021 Governor Reference No: 62884
Page 2 Released December 11, 2019
Alaska Energy Authority - Rural Power Systems Upgrades FY2021 Request:
Reference No:
$17,500,000
52498
AP/AL: Appropriation Project Type: Energy
Category: Development
Location: Statewide House District: Statewide (HD 1-40)
Impact House District: Statewide (HD 1-40)Contact: Curtis Thayer
Estimated Project Dates: 07/01/2020 - 06/30/2025 Contact Phone: (907)771-3000
Brief Summary and Statement of Need:
Electric utility systems are part of the basic infrastructure of rural communities. New power systems
are designed to meet accepted utility standards for safety, reliability, and environmental protections.
Funding:FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Total
1002 Fed
Rcpts
$12,500,000 $12,500,000 $12,500,000 $12,500,000 $12,500,000 $12,500,000 $75,000,000
1169 PCE
Endow
$5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $30,000,000
Total:$17,500,000 $17,500,000 $17,500,000 $17,500,000 $17,500,000 $17,500,000 $105,000,000
State Match Required One-Time Project Phased - new Phased - underway On-Going
0% = Minimum State Match % Required Amendment Mental Health Bill
Operating & Maintenance Costs:Amount Staff
Project Development: 0 0
Ongoing Operating: 0 0
One-Time Startup:0
Totals: 0 0
Prior Funding History / Additional Information:
Sec1 Ch19 SLA2018 P2 L22 SB142 $21,900,000
Sec18 Ch2 SLA2016 P35 L28 SB138 $1,053,858
Sec1 Ch2 SLA2016 P2 L20 SB138 $1,446,142
Sec1 Ch18 SLA2014 P6 L9 SB119 $5,120,000
Sec1 Ch16 SLA2013 P4 L18 SB18 $10,800,000
Sec1 Ch17 SLA2012 P6 L13 SB160 $13,000,000
Declining funds available for Rural Power System Upgrades means that rural power systems are not
upgraded timely. As a result, communities are left with aging systems that are at risk of failure. Of 172
communities needing rural power systems upgrades, 98 projects have been completed in total.
Project Description/Justification:
The Alaska Energy Authority (AEA) works in partnership with the Denali Commission to identify
projects for funding. At this time, the preliminary projects identified are in the following communities:
State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development
FY2021 Governor Reference No: 52498
Page 1 Released December 11, 2019
Alaska Energy Authority - Rural Power Systems Upgrades FY2021 Request:
Reference No:
$17,500,000
52498
Rampart, Nikolai, Nelson Lagoon, and Napaskiak. AEA and the Denali Commission continue to refine
project selection and cost estimates.
State funds are used to leverage federal funds to expand the number of communities served by this
program which advances sustainable, efficient energy infrastructure projects that decrease energy
costs in rural Alaska over the long term.
State matching funds are required for Denali Commission funded construction projects. A match of
20% for distressed communities and 50% for non-distressed communities is required. The distressed
community list is maintained by the Denali Commission.
This program concentrates on power production and delivery, including diesel powerhouse, heat
recovery, and electrical distribution. Efficiency, reliability, safety and sustainability are primary drivers
throughout the conceptual design, final design and construction process.
After completion of the project, the rural utility is required to employ a qualified operator to ensure that
the system is properly operated and maintained. Alaska Energy Authority (AEA) provides training and
technical assistance to assist the community with proper operation of the new facility.
This program began in 1997 and has expanded since FY1999 with federal funding from the Denali
Commission. Federal funding for rural power systems upgrades have been in decline since FY2011
and any available federal funds for construction projects now require a 20% - 50% match, depending
on whether the community is considered distressed.
State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development
FY2021 Governor Reference No: 52498
Page 2 Released December 11, 2019
Alaska Energy Authority - Electrical Emergencies Program FY2021 Request:
Reference No:
$200,000
32950
AP/AL: Appropriation Project Type: Energy
Category: Development
Location: Statewide House District: Statewide (HD 1-40)
Impact House District: Statewide (HD 1-40)Contact: Curtis Thayer
Estimated Project Dates: 07/01/2020 - 06/30/2025 Contact Phone: (907)771-3000
Brief Summary and Statement of Need:
The Electrical Emergencies program is critical to rural communities. Electrical emergencies can result
in the loss of communications, lights, refrigeration systems, washeterias, water and sewer systems,
and the use of other basic infrastructure and equipment. This program contributes to the department's
mission of promoting a healthy economy and strong communities, as electricity is considered
essential for both community development and economic growth.
Funding:FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Total
1004 Gen
Fund
$200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $1,200,000
Total:$200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $1,200,000
State Match Required One-Time Project Phased - new Phased - underway On-Going
0% = Minimum State Match % Required Amendment Mental Health Bill
Operating & Maintenance Costs:Amount Staff
Project Development: 0 0
Ongoing Operating: 0 0
One-Time Startup:0
Totals: 0 0
Prior Funding History / Additional Information:
Sec1 Ch19 SLA2018 P2 L20 SB142 $330,000
Sec12 Ch1 SLA2017 P16 L30 SB23 $330,000
Sec27 Ch38 SLA2015 P27 L16 SB26 $330,000
Sec1 Ch18 SLA2014 P3 L6 SB119 $330,000
Sec1 Ch17 SLA2012 P6 L11 SB160 $330,000
Sec4 Ch5 SLA2011 P127 L19 SB46 $330,000
Project Description/Justification:
The Electrical Emergencies Program is often a life or safety issue and the last resort for communities
with an electrical emergency. This program provides support when an electric utility has lost, or will
lose the ability to generate or transmit power to its customers and the condition is a threat to life,
health, and/or property (including freezers full of invaluable subsistence foods). Funding provides the
current level of technical support through the Electrical Emergencies Program.
Power outages are expensive and compromise public safety:
Water and sewer systems are subject to freezing and bursting
Fire hazards increase
Medical clinics and other public facilities may close
State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development
FY2021 Governor Reference No: 32950
Page 1 Released December 11, 2019
Alaska Energy Authority - Electrical Emergencies Program FY2021 Request:
Reference No:
$200,000
32950
Electrical emergencies may involve power plant failures and/or distribution system failures.
If the Alaska Energy Authority (AEA) is unable to respond, the response to loss of power emergencies
will be redirected to the Department of Military and Veterans Affairs, Division of Homeland Security
and Emergency Management, State Emergency Operations Center (SEOC).
State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development
FY2021 Governor Reference No: 32950
Page 2 Released December 11, 2019
Alaska Energy Authority - Bulk Fuel Upgrades FY2021 Request:
Reference No:
$13,000,000
49734
AP/AL: Appropriation Project Type: Energy
Category: Development
Location: Statewide House District: Statewide (HD 1-40)
Impact House District: Statewide (HD 1-40)Contact: Curtis Thayer
Estimated Project Dates: 07/01/2020 - 06/30/2025 Contact Phone: (907)771-3000
Brief Summary and Statement of Need:
The Bulk Fuel program upgrades non-compliant bulk fuel tank farms in rural communities and invests
$13 million in rural Alaska in FY2021. Upgrading bulk fuel facilities reduces the cost of energy by
reducing or eliminating fuel loss from leaks and spills. By providing enough capacity for current and
planned needs, communities may purchase fuel in larger quantities at a lower cost per gallon. The
program upgrades meet code compliance standards improving life, health, and safety of the
community.
Funding:FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Total
1002 Fed
Rcpts
$7,500,000 $7,500,000 $7,500,000 $7,500,000 $7,500,000 $7,500,000 $45,000,000
1169 PCE
Endow
$5,500,000 $5,500,000 $5,500,000 $5,500,000 $5,500,000 $5,500,000 $33,000,000
Total:$13,000,000 $13,000,000 $13,000,000 $13,000,000 $13,000,000 $13,000,000 $78,000,000
State Match Required One-Time Project Phased - new Phased - underway On-Going
0% = Minimum State Match % Required Amendment Mental Health Bill
Operating & Maintenance Costs:Amount Staff
Project Development: 0 0
Ongoing Operating: 0 0
One-Time Startup:0
Totals: 0 0
Prior Funding History / Additional Information:
Sec1 Ch19 SLA2018 P2 L19 SB140 $17,000,000
Sec1 Ch1 SLA2017 P2 L22 SB23 $2,420,000
Sec1 Ch2 SLA2016 P2 L18 SB138 $1,300,000
Sec1 Ch18 SLA2014 P3 L33 SB119 $7,300,000
Sec1 Ch16 SLA2013 P4 L14 SB18 $6,000,000
Sec1 Ch17 SLA2012 P6 L9 SB160 $7,000,000
Declining funds available for bulk fuel upgrades in rural Alaska means that bulk fuel tanks are not
upgraded timely. As a result, communities are left with aging fuel tanks that may not meet the
capacity needs of the community or are at risk of leaks, contamination, and/or failure. Of 178
communities needing bulk fuel upgrades, 118 bulk fuel projects have been completed.
State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development
FY2021 Governor Reference No: 49734
Page 1 Released December 11, 2019
Alaska Energy Authority - Bulk Fuel Upgrades FY2021 Request:
Reference No:
$13,000,000
49734
Project Description/Justification:
The Bulk Fuel program upgrades non-compliant bulk fuel tank farms in rural communities. State funds
leverage federal funds to expand the number of communities served and advance sustainable,
efficient energy infrastructure projects that decrease energy costs in rural Alaska over the long term.
Alaska Energy Authority (AEA) works in partnership with the Denali Commission to identify projects
for funding. The projects preliminarily identified are in the following communities: Shaktoolik, Ewok,
Shageluk, and Marshall. AEA and the Denali Commission continue to refine the project selection and
cost estimates.
State matching funds are required for Denali Commission funded construction projects. A match of
20% is required for distressed communities, and 50% is required for non-distressed communities. The
distressed community list is maintained by the Denali Commission.
Most of the rural tank farms have serious deficiencies that typically included:
Inadequate dikes to contain fuel spills
Inadequate foundations, which could cause gradual tank movement and fuel leakage
Improper piping systems and joints, which are the most common source of fuel leaks
Improper siting near wells, beaches, and buildings, or within a flood plain
Tanks that are rusted or damaged beyond repair
Electrical code violations
Inadequate security
State of Alaska Capital Project Summary Department of Commerce, Community, and Economic Development
FY2021 Governor Reference No: 49734
Page 2 Released December 11, 2019
AEA Board - 2019 Audit Approval
January 15, 2020 MOTION
________ move to accept the 2019 Alaska Energy Authority Audited Financial
Report as presented at the December 4, 2019 Board meeting. Motion seconded
by: ___________
REDUCING THE COST OF ENERGY IN ALASKA
Alaska C-PACE
Tom Benkert
Energy Funding Specialist
Alaska Energy Authority
AEA Board Meeting
January 15, 2020
Alaska Energy Authority 2
Commercial Property Assessed Clean Energy (C-PACE) is a tool that can finance
energy efficiency and renewable energy improvements for commercial property
Adopted by over 30 states, C-PACE is an effective tool to attract private capital
for energy upgrades
In 2017, legislation was passed to develop a C-PACE program in Alaska
AEA is leading an ad hoc group of stakeholders to initiate programs in
municipalities and boroughs statewide
Under the C-PACE model, debt associated with doing the improvements is
repaid via a line item on local tax assessments
What is C-PACE?
Alaska Energy Authority 3
Drives private sector investment, creates
energy efficiencies and energy jobs, and
helps municipalities/boroughs meet
efficiency and clean energy standards
No financial risk –zero tax dollars, no risk
to treasury, no risk to public servants, and
limited impact on public servant work load
Builds strong local stakeholder support,
demonstrates best practices/consumer
protection, and the government doesn’t
compete with the private sector
Alaska Energy Authority 4
C-PACE Benefitsfor Local Government
Allows access to capital under more
favorable terms
Opportunity to undertake building
improvement(s) which results in a
return on investment that creates a
positive impact to cash flow from
energy savings
Loan payment/lien attaches to the
property rather than the business or
building owner
Verification of energy improvements
through third-party energy auditors to
ensure results
Alaska Energy Authority 5
C-PACE Benefitsfor Building Owners
Contractors who educate their
customers on C-PACE can capitalize
on energy efficiency opportunities to
build more business
Provides a finance option that helps
to close more deals
Contractors benefit from technical
review services that provide credibility
to the energy savings projections that
they present to building owners
Alaska Energy Authority 6
C-PACE Benefitsfor Contractors
C-PACE Loans are seen as less risky than
typical loans and lenders are incentivized
to offer favorable terms
Puts the lender in the senior lien position;
default rates are almost nonexistent
The repayment obligation transfers
automatically to the next owner if the
property is sold
Cost savings from the energy measure
gives the borrow a better ability to repay
the loan
Allows the lender a new business line of
loan products
Alaska Energy Authority 7
C-PACE Benefitsfor Lenders
Alaska Energy Authority
Alaska Industrial Development and Export
Authority
Alaska Electric Light & Power
Alaska Growth Capital
Alaska Housing Finance Corporation
Alaska Municipal League
Arctic Solar Ventures
Building Operators and Managers
Association
City and Borough of Juneau
Council of Development Finance Agencies
Daylight Energy Services
Fairbanks North Star Borough
Genesis Energy
Kenai Peninsula Borough
Municipality of Anchorage
Renewable Energy Alaska Project
Siemens
Alaska C-PACE Advisory Group
Alaska Energy Authority 8
The Alaska C-PACE Advisory Group is comprised of stakeholders representing building
contractors, capital providers, commercial building owners, energy professionals, lenders, local
governments, and non-profit organizations.
At the start of 2019, AEA was
awarded a grant from the U.S.
Department of Energy to provide
critical administrative assistance for
implementing C-PACE in Alaska
In the summer of 2019, AEA
contracted with various entities for
technical, administrative, and legal
assistance
The goal is to have C-PACE enabled
in at least three municipalities in
Alaska
Alaska Energy Authority 9
Where are we now?
SAFE,
RELIABLE, &
AFFORDABLE
ENERGY
SOLUTIONS
ALASKA ENERGY AUTHORITY
813 West Northern Lights Blvd.
Anchorage, Alaska 99503
Phone: (907) 771-3000
Fax: (907) 771-3044
Toll Free 888-300-8534
akenergyauthority.org
For more information, please contact AEA Energy Funding Specialist Tom Benkert
REDUCING THE COST OF ENERGY IN ALASKA
REDUCING THE COST OF ENERGY IN ALASKA
Renewable Energy Fund
Neil McMahon
Program Manager
Energy Planning
AEA Board Meeting
January 15, 2020
Alaska Energy Authority 2
History and Overview
Established in 2008 under
AS 42.45.045
Legislative intent: $50M for
five years
Program extended for 10 years in
2012 through Fiscal Year 2023
Be a new project not in operation
in 2008, and be a hydro, direct use
of renewable energy, a facility that
generates electricity from fuel cells
that use hydrogen from RE or
natural gas (certain conditions for
natural gas), or be a facility that
generates electricity using
renewable energy
OverviewHistory
Alaska Energy Authority 3
REF Appropriations ($ millions)
$0
$20
$40
$60
$80
$100
I II III IV V VI VII VIII IX
REF Round
Rounds I-IX: 851 total
applications received
295 applications funded
$268 million granted
$165 million in direct
project match
Alaska Energy Authority 4
REFAC Advisory Committee
NAME SECTOR APPOINTED BY
Meera Kohler Small rural electric utility Governor
Unfilled Representative of an Alaska Native Organization Governor
Chris Rose Business/Organization involved in renewable energy Governor
Alicia Siira Denali Commission Governor
Lee Thibert Large urban electric utility Governor
Natasha von Imhof Senate member 2 Senate President
David Wilson Senate member 1 Senate President
Adam Wool House member 2 Speaker of the House
Tiffany Zulkosky House member 1 Speaker of the House
Alaska Energy Authority 5
Four Stage REF Evaluation Process
Step 1 Step 2 Step 3 Step 4
Completeness/eligibility
(AEA staff)
Feasibility and public
benefit (AEA, DNR,
Contractors)
Technical and
economic evaluation
Qualifications and
experience of team
Project management,
development,
operation
Ranking projects
(AEA/REFAC)
Cost of energy single
biggest criterion (30%)
Levelized feasibility
score from stage 2
(25%)
Other criteria include
public benefits,
readiness, local support
and match
Regional spreading
(AEA/REFAC)
REF ApplicationsFunded 2008-2019
Alaska Energy Authority 6
Biomass or BioFuels
Heat Pump
Heat Recovery
Hydro
Ocean/River
Solar
Transmission
Wind
Other
Approximately
30 active REF
projects remain to
be completed.
Alaska Energy Authority 7
Percentage of Electricity Generated by Fuel
0%
25%
50%
75%
100%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Coal
Natural
gas
Oil
Wind
Hydro18%
29%
Alaska State
Energy Policy (2010):
Goal of 50% of
electricity generated
by renewable source
by 2025
REF Fuel Savings From Construction Projects
Fuel Displaced (diesel equivalent, gallons)
Alaska Energy Authority 8
0
5
10
15
20
25
30
35
MillionsBiomass
Heat Pump
Heat Recovery
Hydro
Biofuel
Solar
Transmission
Wind
Wind to Heat
Total fuel
cost savings
in 2017:
~74M
Alaska Energy Authority 9
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
2009 2010 2011 2012 2013 2014 2015 2016 2017
Value of diesel saved in PCE-eligible communities
(2009-2017)
Wind to Heat
Wind
Transmission
Solar PV
Hydro
Heat Recovery
REF Fuel Savings From Construction Projects
Value of diesel saved in PCE-eligible communities (2009-2017)
Total fuel cost
savings to PCE-
eligible utilities
2009-2017:
~$29M
Alaska Energy Authority 10
REF Balance
Uncommitted
~$8.58M as of 9/30/2019
Fiscal
Year
PCE endowment
fund earnings
Excess earnings from PCE Endowment
potentially available to REF
Action
FY 2020 $76.6M $454,000 Vetoed by
governor
FY 2021 $74.1M <$200,000
Operating Fund Commitment
$2M (FY 2020)
$1.4M (FY 2021 proposed)
Alaska Energy Authority 11
REF Release Schedule
Action Expected Dates
RFA release March 2020
Applications due June/July 2020
REFAC meeting July/August 2020
Evaluate applications July-November 2020
REFAC meeting December 2020/January 2021
Deliver recommendations to legislature January 29, 2021
Grants could begin July 1, 2021
SAFE,
RELIABLE, &
AFFORDABLE
ENERGY
SOLUTIONS
ALASKA ENERGY AUTHORITY
813 West Northern Lights Blvd.
Anchorage, Alaska 99503
Phone: (907) 771-3000
Fax: (907) 771-3044
Toll Free 888-300-8534
akenergyauthority.org
For more information, please contact Program Manager Energy Planner Neil McMahon
REDUCING THE COST OF ENERGY IN ALASKA
813 West Northern Lights Boulevard, Anchorage, Alaska 99503 | P 907.771.3000 | Toll Free 888.300.8534 | F 907.771.3044 | WWW.AKENERGYAUTHORITY.ORG
REDUCING THE COST OF ENERGY IN ALASKA
Legislative Reports Due to the Legislature in 2020
# Report Due Date Audience Statute
1. Capital Reserve
Shortfall
January 2 Governor, Legislature AS 44.83.110(f)
2. Susitna River Power
Project Annual Report
January 21 Legislature AS 44.83.085
3. Revised estimate of
need to withdraw
from Capital Reserve
Fund
January 30 State Bond Committee,
Legislative Budget &
Audit Committee
AS 44.83.110(h)
4. Renewable Energy
Fund Status Report
January 30 Legislature AS
42.45.045(d)(3)
5. Project Status Report
February 4 Legislature AS 44.83.950(b)
6. Annual Report
March 1 Governor, Legislature AS 44.83.940
7. Power Cost
Equalization Annual
Report
March 1 Legislature, particulary
rural legislators
None
813 West Northern Lights Boulevard, Anchorage, Alaska 99503 | P 907.771.3000 | Toll Free 888.300.8534 | F 907.771.3044 | WWW.AKENERGYAUTHORITY.ORG
REDUCING THE COST OF ENERGY IN ALASKA
Railbelt Reliability Council Update
At the urging of the RCA, utilities have indicated their understanding that “institutional
reform” of the railbelt bulk electrical system is necessary. Transco efforts have been
unsuccessful to date. ARCTEC hired consultant (GDS) to investigate other potential
“institutional reform” mechanisms. This resulted in the process described below to form
the Railbelt Reliability Council (RRC).
The 6 railbelt utilities (in consultation with stakeholders) are attempting to structure an
entity to perform the following:
Reliability standards with cyber and physical security protocols
Open access and interconnection protocols
System planning functions
System dispatch functions
As contemplated the entity will be:
A not-for-profit corporation
Organized under the laws of the State of Alaska
Subject to jurisdiction of the RCA
Will not own generation or transmission assets
Will not provide power to customers in any of the 6 railbelt utility service territories
Development Process
Organizational Development Team (ODT): Lays the groundwork for establishment of
the Implementation Committee (IC). Dissolved upon Implementation Committee (IC)
creation.
Consists of one (1) representative from each of the six (6) railbelt utilities.
Engage non-utility stakeholders
Develop MOU amongst utilities for potential signature (expected to be submitted to
utility boards on December 17th, 2019)
Lay the groundwork for the creation of an Implementation Committee (IC)
Implementation Committee: Develops the organization business plan including Articles
of Incorporation, Bylaws, P&P’s, and Codes of Conduct etc. The committee hires personnel
and shall be the original Board of Directors of the RRC. The committee is dissolved upon
creation of the RRC.
12 Members
o 1-6, Utilities (self-appointed)
813 West Northern Lights Boulevard, Anchorage, Alaska 99503 | P 907.771.3000 | Toll Free 888.300.8534 | F 907.771.3044 | WWW.AKENERGYAUTHORITY.ORG
o 7, AEA (self-appointment)
o 8-9, Independent Power Producers (IPP) (selected by the Alaska
Independent Power Producers Association (APPIP))
o 10, Consumer advocacy (selected by consultant based on criteria established
in MOU)
o 11-12, Non-affiliated (selected by consultant based on criteria establish in
MOU)
o NOTE: The RCA and RAPA have ex-officio status on the IC
RRC: Performs functions aforementioned (reliability, open access, planning, system
dispatch). Staffing will be completed by the IC as aforementioned and will be subject to RCA
oversight.
RRC interaction with Senate Bill 123
At the RCA public meeting held on December 11th, the RCA passed a motion
unanimously to support SB123
SB123, as drafted, gives the RCA the tools required to force participation in an entity
similar to the above RRC. SB123 call’s this entity an “Electric reliability organization
(ERO)”
If a railbelt utility does not sign the MOU aforementioned, SB123 will force their
participation
SB123 requires that the ERO be formed prior to October 1st, 2020
Attachments:
Most Recent MOU
SB 123 as introduced on 5/14/19
Page 1 of 8
Railbelt Reliability Council (RRC)
MEMORANDUM OF UNDERSTANDING (MOU)
Among
Anchorage Municipal Light and Power,
Chugach Electric Association, Inc.,
Golden Valley Electric Association, Inc.,
Homer Electric Association Inc.,
Matanuska Electric Association, Inc.,
and City of Seward - Electric System
(Railbelt Utilities)
December 6, 2019
1.Railbelt Utilities. This Memorandum of Understanding (MOU) is made and entered into
among the signatory Railbelt Utilities, Chugach Electric Association, Inc., Golden Valley
Electric Association, Inc., Homer Electric Association, Inc., Matanuska Electric Association,
Inc., Anchorage Municipal Light and Power, and City of Seward - Electric System.
2.Purpose. This MOU memorializes the agreement by the signatory Railbelt Utilities to proceed
with the creation of the Railbelt Reliability Council (RRC), including the formation of a
governance structure and RRC Implementation Committee (IC). The purpose of the RRC is to
ensure reliability benefits to electric consumers in the Railbelt. The 12-member RRC IC shall
be established as outlined below in Section 8 of this MOU and shall constitute the initial RRC
board of directors. The RRC board of directors will hire the RRC Chief Executive Officer
(CEO), who will then also serve as the 13th board member. The 12-member IC will also adopt
a formal RRC Business Plan (Plan). The Plan will include the RRC Articles of Incorporation,
Bylaws, Policies, and Procedures, Codes of Conduct and other control documents necessary to
establish the RRC. This MOU outlines RRC functions as identified in Section 5 and other
items necessary to realize those benefits, including regulatory oversight, the scope of
responsibility and authority, governance structure, and funding, which will be key components
of the Plan. The Plan is anticipated to be completed as soon as practicable but not later than
December 1, 2020. The Plan and quarterly updates of the Plan's status will be filed with the
Regulatory Commission of Alaska (RCA).
3.General Provisions.
A.Amendments. Any changes, modifications, revisions, or amendments to this MOU
require unanimous written agreement amongst the signatory Railbelt Utilities and shall
thereafter become effective when approved in writing by the IC.
B.Entirety of the MOU. This MOU represents the entire integrated agreement between
the signatory Railbelt Utilities related to the creation of an RRC and supersedes all
previous iterations of the MOU, including the Memorandum of Understanding for
Electrical Reliability Standards dated October 11, 2017.
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C. Term. This MOU is effective the sooner of the date all Railbelt utilities sign or
December 31, 2019 and shall remain in full force and effect until the creation of the
RRC and its adoption of the Plan, unless otherwise unanimously agreed to by the IC.
D. Regulatory Compact. The signatory Railbelt Utilities agree that the articles of
incorporation and bylaws of the RRC, when adopted and approved/accepted by the
RCA, shall constitute a regulatory compact with the State of Alaska. Once the articles
and bylaws of the RRC developed by the IC are approved/accepted by the RCA, the
parties agree to be bound by decisions of the RRC and any subsidiary organizations
organized by that RRC to the extent provided for in the articles and bylaws. To the
extent required by statute, the RRC will obtain a Certificate of Public Convenience and
Necessity (CPCN). Except as specifically provided herein, this MOU is not intended as
a concession of authority to the RCA that does not currently exist, including siting
authority, and economic regulation of utilities that are not currently economically
regulated. However, if the RCA requires additional specific authority to regulate the
functions of the RRC, as outlined in this MOU, then the parties agree to support
statutory change to affect RCA authority accordingly.
E. Benefit. The agreements and obligations contained in this MOU are for the benefit of
all Railbelt Utilities, individually and collectively, and for other users of the Railbelt
electrical transmission system.
4. Railbelt Reliability Council. A stakeholder-driven entity that shall be:
A. A not-for-profit corporation;
B. Organized under the laws of the State of Alaska; and
C. Subject to the jurisdiction of the RCA under the terms of its articles and bylaws that
shall provide for appeal of RRC decisions to the RCA.
5. Railbelt Reliability Council. Established to implement the following functions:
A. Reliability Standards. Adopt, administer, and enforce Railbelt electric system
reliability standards, including cyber and physical security that:
i. Recognize the current capabilities and constraints of the Railbelt Transmission
System;
ii. Are mandatory and enforceable minimum Railbelt wide power system planning
and operating standards. These standards shall allow for local criteria that meets
or exceeds these minimum standards;
iii. Are technically sound standards for operations, planning, physical security and
cybersecurity;
iv. Include a compliance monitoring and enforcement program that is subject to the
review and approval of the RCA; and
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v. Comply with and implement the Electric Reliability Standards agreed to by the
Railbelt Utilities and submitted to the RCA on April 17, 2018, and Critical
Infrastructure Protection Standards (CIP) as developed and approved by the
Railbelt Utilities before RRC formation. The standards described above will
serve as the RRC's "Version 1.0" reliability and CIP standards for adoption,
administration, development, monitoring, and enforcement.
B. Open Access and Interconnection Protocols. Develop, adopt and administer rules and
protocols for the Railbelt that provides open-access, non-discriminatory interconnection
requirements, and processes compliant with RCA approved reliability standards and
recovery of appropriate proposed system costs as approved by the RCA. Appropriate
proposed system costs shall be based on a cost recovery methodology approved in
advance by the RCA and, unless otherwise agreed by a super-majority (75%) of the full
IC or RRC BoD, will be limited to those costs incurred in the application of RCA
approved reliability standards, supported by the IRP, or that contribute positively to
Railbelt reliability.
C. System Planning. Develop, adopt, and utilize a Railbelt electric system-wide
generation and transmission planning process utilizing the Railbelt reliability planning
standards adopted by the RRC that:
i. Addresses the system reliability issues that pose an unacceptable risk to the
integrity of the Railbelt transmission system;
ii. Allows individual utilities the flexibility to develop and implement local
planning criteria subject to RCA-approved reliability standards, and
consideration of Technical Advisory Committee (TAC) recommendations and
the RRC approved IRP;
iii. Maximizes the capability of delivery of the most economic existing resources to
load;
iv. Allows for voluntary Security-Constrained Economic Dispatch of new
generation resources;
v. Creates a Railbelt Integrated Resource Planning (IRP) process that identifies
new generation and transmission projects, subject to reliability standards,
economics, state statutes and other criteria that the RRC establishes; and
vi. Develops and maintains the system planning and simulation model for use by all
Railbelt Utilities.
The RRC may require construction of system assets but shall not mandate, deny, or approve
the construction of any generation or transmission facility by any specific utility.
D. System Dispatch. Perform a cost-benefit analysis of a security-constrained economic
system dispatch function that identifies the economic benefits and costs of a single
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system dispatch for all or a feasible portion of the Railbelt electric system. The cost-
benefit analysis will:
i. Be performed under the guidance of the Technical Advisory Committee (TAC)
of the RRC using the RRC governing board adopted and RCA approved cost-
benefit model. It should include consideration of modeling done related to recent
Transco collaboration, new transmission assets; operation, maintenance, and
decommissioning costs; the location and costs of renewable generation
resources and their integration into the grid; and the cost of energy storage.
ii. Determine the most cost-effective security-constrained economic dispatch
configuration in terms of Load Balancing Areas (LBAs) (one or more).
iii. Reflect the impacts of existing power purchase and sales contracts, transmission
tariffs, fuel supply, and transportation agreements, etc. and any costs associated
with eliminating or modifying these contracts to increase reliability and
economic efficiency.
Utility participation in a joint dispatch agreement will be voluntary and should be based
on an economic cost-benefit analysis. The RRC may not mandate any utility’s
participation in a joint dispatch agreement.
E. Independence. The RRC, as an independent entity, will not own or operate any
generation and transmission assets. Nor will the RRC provide electric service to the
consumers of the signatory utilities.
6. Other Railbelt Organizations. In conjunction with the RRC development, the Railbelt
Utilities are evaluating and planning, pending the approval of each utilities’ respective Board,
to develop a Railbelt Transmission Organization. Any CPCN filing for such an organization
will include the negotiated base cost allocation. The cost allocation for new assets will be
adjusted based on relative changes in load.
7. Organizational Structure. The RRC organization will be structured as follows:
A. Governance. The RRC will be governed by a Board of Directors (BoD) that will
consist of 13 individuals, of which there will be 12 voting members and the CEO as tie-
breaker vote only. The voting members will consist of representatives from each of the
six Railbelt Utilities, and six non-utility stakeholders. The six non-utility stakeholders
will be the Alaska Energy Authority, one stakeholder from a group that represents the
interests of Railbelt consumers, two independent power producers (IPPs), and two
members with knowledge of utility operations and planning functions, but not
associated with any Railbelt electricity-producing or delivering entity i.e. non-affiliated
members. The Board of Directors shall also consist of two non-voting ex officio
members represented by the RCA and the Regulatory Affairs and Public Advocacy
(RAPA) office of the Alaska Attorney General.
B. An Organizational Development Team (ODT) representing the six utilities will lay the
groundwork and assist in standing up the IC. Once the twelve IC members are
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appointed/selected, the ODT will be dissolved. The members of the IC shall be the first
RRC governing board.
C. The CEO will be the RRC chairperson. When and if a Transmission Organization is
formed and certificated as a public utility, it will be added as a voting member. The
number of Railbelt Utilities and non-utility stakeholders serving as voting members on
the BoD must be equal at all times, and in maintaining this balance, the Transmission
Organization shall be considered a utility member. The RRC Bylaws shall prescribe
terms for all directors, and the method for selecting them, including additional directors.
The Bylaws shall prescribe terms for directors necessary to balance the number of
utility and non-utility directors.
D. Subject to maintaining utility to non-utility balance on the board, within 15 days of the
date of execution of this agreement the ODT, shall post public notice weekly for 30
days seeking nominations to the RRC IC for the consumer advocacy, non-affiliated, and
independent power producer’s seats. The ODT will post this notice in the Fairbanks,
Anchorage and Kenai papers and through the RCA listserv. Nominations will be
accepted until 15 days following the close of the notice period. Those nominations
shall be sent to the address contained in the public notice posted by the ODT. Those
applications for the two IPP seats shall be verified as being IPPs currently operating on
the Railbelt, and once verified shall be conveyed to the Alaska Independent Power
Producers Association for appointment within 30 days of conveyance.
E. Within 30 days of the date of execution of this agreement, the six utilities, and AEA
shall appoint their representatives to the RRC IC. The names of the appointees shall be
sent to the address contained in the public notice posted by the ODT.
F. Within 30 days of the date of execution of this agreement, RAPA, & the RCA shall
appoint their ex-officio representatives to serve on the IC. The names of the appointees
shall be sent to the address contained in the public notice posted by the ODT.
G. In the selection of the consumer advocacy and non-affiliated members, the IC members
selected/appointed through Sections “D”, “E” and “F” above shall retain an independent
firm to review and confirm the prospective candidates’ qualifications. This
review/confirmation, will be accomplished within 30 days of being retained.
Thereafter, one member from the six utility appointees, the two IPP appointees, and
AEA shall then convene to choose the consumer advocacy member of the IC from the
applications presented and based on criteria (i)-(v) below. Once the consumer advocacy
member has been selected, a selection committee comprised of one IPP member, AEA,
and the consumer advocacy member, shall select the two non-affiliated members from
the applications presented, and based on criteria (i)-(v) below. The selection committees
shall invite the remaining IC members, and the RAPA and RCA appointees to
participate, in a non-voting capacity, in the consumer advocacy and non-affiliated
selection meetings. The selection committees shall make their selections within 15 days
from the date the qualified applications are presented. As noted above, the non-affiliated
and consumer advocacy members shall be selected based on the following criteria:
i. The individual or entity’s relationship to the Alaska Railbelt generation and
Page 6 of 8
transmission system;
ii. The individual or entity’s knowledge of, and experience with, the issues
surrounding the operation of the Railbelt generation and transmission system;
iii. Other expertise or involvement the individual or entity may bring to the IC
including involvement in the process to form the RRC;
iv. Preference will be given to Alaska residents and entities; and
v. In the appointment of the non-affiliated and consumer advocacy members, the
selection committees shall consider the regional composition of the non-utility
membership of the IC (excluding AEA, RAPA and the RCA), and shall strive
for representation from throughout the Railbelt. Preference may be given to
qualified candidates in an effort to achieve this regional representation. The
regions to be considered are the Interior, the Matsu /Anchorage area, and the
Kenai Peninsula.
H. If an individual or entity that nominates itself to be on the RRC IC is not chosen, it may
request that the IC, acting as one body, write a letter to the RCA laying out the reasons
that the entity was not chosen. The letter shall be signed by those members then on the
IC.
I. TAC. The TAC will be a working group of qualified technical professionals with
specific operational, system planning, and management responsibilities that will provide
for monitoring of the utilities' compliance with the Reliability Standards and make
recommendations to the BoD as appropriate. The bylaws shall prescribe the method for
selecting and resourcing the efforts of the TAC.
J. Audit and Finance Committee (AFC). The AFC will be a working group of qualified
technical professionals with specific financial and auditing experience that will ensure
the financial health of the organization. The bylaws shall prescribe the method for
selecting and resourcing the efforts of the AFC.
K. Staff. The staff will consist of a CEO and qualified technical professionals to provide
ongoing expertise in the areas of power grid operations, renewable energy, energy
storage, modeling, reliability, rates, analysis, and IT.
L. Members. The entities represented on the BoD will be the initial members of the RRC.
The RRC may evaluate the need in the future for an expanded member organization that
incorporates sector stakeholders similar to the NEPOOL or ERCOT system.
8. Organizational Controls. The RRC will develop, adopt, and implement organizational
controls. Compliance with the organization's articles, bylaws, code of conduct, and policies
and procedures for the BoD, TAC, AFC, RRC staff, and members will be mandatory.
Requirements for the RRC not specifically stated in this MOU will be detailed in the written
control documents mentioned and include but not be limited to the following:
Page 7 of 8
A. BoD. Duties and powers; composition; positions and titles; voting rights, proxies, and
quorums; qualifications; how selected; terms of members; filling of vacancies and
removals; actions w/o meetings; committees.
B. TAC. Duties and responsibilities; scope of activities; composition and qualifications.
C. AFC. Duties and responsibilities; scope of activities; composition and qualifications.
D. RRC Staff. Duties and responsibilities; scope of activities; titles; and composition and
qualifications.
E. Methods and rules for meetings and actions shall be conducted in accordance with
Robert’s Rules of Order, as amended from time-to-time in the organization’s bylaws.
9. Funding. The RRC will fund its operations through annual system administration fees
collected from all load-serving entities (LSEs) in the Railbelt. The RRC‘s annual budget will be
approved by the RCA as specified in the RRC bylaws. The annual administration fees will be
allocated amongst the LSEs on a 12-Coincident Peak (CP) load share ratio basis (LRS). These
resources will be used to fund the work of the RRC, including studies, standards development,
and document development, etc. These resources will be allocated to the various committees
and subcommittees of the RRC in a way that supports the articulation, evaluation, and
development of the potentially diverse views of the RRC and its subcommittees. And further
for the purpose of providing the RRC with concise and rational recommendations through the
committee process.
10. Implementation Committee. Following the execution of this MOU, IC will be selected as
outlined above, and function as described below.
A. Scope. The IC will be responsible for developing the Plan in accordance with this
MOU, hiring legal, financial, facilitation, engineering, and other services to assist in
developing the Plan, developing the annual staffing plan and operating budgets for the
first 3 years of the RRC, meeting as necessary in person or by electronic means, and
keeping meeting minutes. In developing the Plan, the IC may take into account new
information as it becomes available.
B. Costs. The cost to develop the Plan will be allocated to the Railbelt Utilities
participating on the IC based on load ratio sharing calculated from 2018 LRS.
C. Deliverables. The IC will be responsible for creating the Plan, written control
documents, and professional qualifications for BoD, TAC, and AFC.
Page 8 of 8
ANCHORAGE MUNICIPAL LIGHT & POWER CHUGACH ELECTRIC ASSOC., INC.
By: By:
Anna Henderson, General Manager Lee Thibert, Chief Executive Officer
Date: Date:
GOLDEN VALLEY ELECTRIC ASSOC., INC. HOMER ELECTRIC ASSOC., INC.
By: By:
Cory Borgeson, President & Chief Executive Officer Bradley P. Janorschke, General Manager
Date: Date:
MATANUSKA ELECTRIC ASSOC., INC. CITY OF SEWARD - ELECTRIC SYSTEM
By: By:
Anthony M. Izzo, CEO/General Manager John Foutz, Electric Utility Manager
Date: Date:
SB0123A -1- SB 123
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SENATE BILL NO. 123
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FIRST LEGISLATURE - FIRST SESSION
BY THE SENATE SPECIAL COMMITTEE ON THE RAILBELT ELECTRIC SYSTEM
Introduced: 5/14/19
Referred: Senate Special Committee on the Railbelt Electric System, Finance
A BILL
FOR AN ACT ENTITLED
"An Act relating to the regulation of electric utilities and electric reliability 1
organizations; and providing for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 42.05 is amended by adding new sections to read: 4
Sec. 42.05.292. Electric reliability organizations. (a) An electric utility must 5
participate in an electric reliability organization if the utility operates in an 6
interconnected electric energy transmission network served by an electric reliability 7
organization certified by the commission. 8
(b) A person may submit to the commission an application for certification as 9
an electric reliability organization for an interconnected bulk-power system. The 10
commission may certify one electric reliability organization for each interconnected 11
electric energy transmission network. The commission may certify an electric 12
reliability organization if the commission determines that the electric reliability 13
organization 14
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(1) has the ability to develop reliability standards that provide for an 1
adequate level of reliability of a bulk-power system; 2
(2) has the ability to develop an integrated resource plan under 3
AS 42.05.293(a); 4
(3) has established rules to 5
(A) ensure that the directors of the electric reliability 6
organization and the electric reliability organization act independently from 7
users, owners, and operators of the bulk-power system; 8
(B) equitably allocate reasonable dues, fees, and other charges 9
among all load-serving entities connected to the bulk-power system for all 10
activities under this section; 11
(C) provide fair and impartial procedures for the enforcement 12
of reliability standards; 13
(D) provide for reasonable notice and opportunity for public 14
comment, due process, openness, and balance of interests in developing 15
reliability standards and exercising its duties; and 16
(4) is governed by a board that 17
(A) includes as nonvoting members the chair of the 18
commission or the chair's designee and the attorney general or the attorney 19
general's designee; and 20
(B) is formed as 21
(i) an independent board; 22
(ii) a balanced stakeholder board; or 23
(iii) a combination independent and balanced 24
stakeholder board. 25
(c) The commission shall form an electric reliability organization for an 26
interconnected bulk-power system if no person has applied for certification as an 27
electric reliability organization for that interconnected bulk-power system under (b) of 28
this section on or before October 1, 2020. 29
(d) An electric reliability organization shall file each reliability standard or 30
modification to a reliability standard with the commission as a new or revised tariff 31
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provision. All users, owners, and operators of a bulk-power system shall comply with 1
reliability standards contained in a tariff that is approved by the commission. The 2
commission may enforce a reliability standard adopted under this section. A reliability 3
standard adopted under this section 4
(1) shall provide for the reliable operation of the bulk-power system or 5
of a bulk-power system facility; a reliability standard adopted under this section may 6
provide for 7
(A) cybersecurity protection; 8
(B) facility security; 9
(C) additions or modifications to a bulk-power system facility 10
to the extent necessary to provide for reliable operation of the bulk-power 11
system; 12
(2) may not require enlargement of bulk-power system facilities or 13
construction of new transmission capacity or generation capacity. 14
(e) The commission may approve a proposed reliability standard or 15
modification to a reliability standard submitted by an electric reliability organization if 16
the commission determines that the standard is just, reasonable, not unduly 17
discriminatory or preferential, and in the public interest. The commission may reject 18
or amend, in whole or in part, a proposed reliability standard or modification to a 19
reliability standard. A proposed standard or modification takes effect upon approval 20
by the commission. A standard approved under this subsection satisfies the 21
requirements of AS 42.05.291(c). 22
(f) The commission may, on its own motion or upon complaint, order an 23
electric reliability organization to submit to the commission a proposed reliability 24
standard or modification to a reliability standard that addresses a specific matter. 25
(g) An electric reliability organization may impose a penalty on a user, owner, 26
or operator of an interconnected bulk-power system for a violation of a reliability 27
standard if, after notice and a hearing, the electric reliability organization 28
(1) finds that the user, owner, or operator has violated a reliability 29
standard; and 30
(2) files notice of the proposed penalty and the record of the 31
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proceeding with the commission at least 30 days before imposition of the penalty. 1
(h) The commission may, on its own motion or upon complaint, order a user, 2
owner, or operator of a bulk-power system to comply with a reliability standard and 3
impose a penalty against the user, owner, or operator of a bulk-power system if the 4
commission finds, after notice and a hearing, that the user, owner, or operator of the 5
bulk-power system has engaged or is about to engage in an act or practice that violates 6
a reliability standard. 7
(i) A user, owner, or operator may appeal to the commission a penalty 8
imposed under (g) or (h) of this section. The commission may, on its own motion, 9
review a penalty imposed under (g) or (h) of this section. The commission shall, after 10
notice and a hearing, issue an order affirming, modifying, reinstating, or revoking the 11
penalty or remand the penalty to the electric reliability organization for further 12
proceedings. Unless otherwise ordered by the commission, a penalty shall remain in 13
effect during proceedings under this section. The commission shall expedite 14
proceedings under this subsection. 15
(j) A penalty imposed under (g), (h), or (i) of this section must bear a 16
reasonable relation to the seriousness of the violation and take into consideration the 17
effort of a user, owner, or operator to remedy the violation in a timely manner. 18
(k) The commission may direct an electric reliability organization to conduct 19
assessments of the reliability and adequacy of the bulk-power system. 20
(l) If a reliability standard adopted under this section conflicts with a function, 21
rule, tariff, rate schedule, or agreement that has also been accepted, approved, adopted, 22
or ordered by the commission, a user, owner, or operator shall comply with the 23
function, rule, tariff, rate schedule, or agreement until the conflict is resolved by the 24
commission. 25
(m) An electric reliability organization shall file with the commission each 26
proposed rule or proposed rule change, along with an explanation of the basis and 27
purpose of the proposed rule or proposed rule change. The commission may, on its 28
own motion or upon complaint, propose a change to the rules of an electric reliability 29
organization. A rule change proposed by the commission takes effect upon a finding 30
by the commission, after notice and opportunity for public comment, that the rule 31
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change is just, reasonable, not unduly discriminatory or preferential, and is in the 1
public interest. 2
(n) The commission shall adopt regulations governing electric reliability 3
organizations, reliability standards, and modifications to reliability standards 4
consistent with this section. Regulations under this section 5
(1) may include a requirement that an electric reliability organization 6
obtain a certificate of public convenience and necessity; 7
(2) may provide for the issuance of an open access transmission tariff 8
to the electric reliability organization; 9
(3) must provide a process to identify and resolve conflicts between a 10
reliability standard and a function, rule, tariff, rate schedule, or agreement that has 11
been accepted, approved, adopted, or ordered by the commission; 12
(4) must allow the electric reliability organization to recover its costs 13
through surcharges added to the rate for each participating electric utility. 14
Sec. 42.05.293. Integrated resource planning. (a) An electric reliability 15
organization shall prepare and file with the commission an integrated resource plan for 16
meeting the reliability requirements of customers within its interconnected bulk-power 17
system in the most cost-effective manner, consistent with the load-serving entities' 18
obligations. An integrated resource plan must contain an evaluation of the full range of 19
cost-effective means for load-serving entities to meet the service requirements of 20
customers, including additional generation, transmission, and conservation or similar 21
improvements in efficiency. An integrated resource plan must include options to meet 22
customers' collective needs at the lowest cost, consistent with the public interest, 23
regardless of the location or ownership of new facilities. 24
(b) The commission shall, after notice and a hearing, approve, reject, or 25
modify an integrated resource plan submitted under (a) of this section, consistent with 26
the public interest. 27
(c) The commission may include in a public utility's rates 28
(1) the cost of resources acquired in accordance with an integrated 29
resource plan adopted under this section; 30
(2) cost-effective expenditures for improving the efficiency with which 31
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the public utility provides and its customers use utility services; and 1
(3) the cost of a utility to comply with the planning requirements of 2
this section, including planning costs and portfolio development costs. 3
(d) The commission shall adopt regulations governing the submission of a 4
plan under this section, including the content of a plan, time for filing a plan, criteria 5
for determining cost-effectiveness, and other criteria as determined by the 6
commission. 7
(e) In this section, 8
(1) "planning costs" means the costs of evaluating the future demand 9
for services and alternative methods of satisfying future demand; 10
(2) "portfolio development costs" means the costs of preparing a 11
resource in a portfolio for timely acquisition of the resource. 12
Sec. 42.05.294. Project preapproval. (a) A public utility that is 13
interconnected with a bulk-power system may not construct a large energy facility 14
unless the commission determines that the facility 15
(1) is necessary to the bulk-power system with which it would be 16
interconnected; 17
(2) complies with reliability standards; and 18
(3) would meet the needs of a load-serving entity that is substantially 19
served by the facility in the most cost-effective manner. 20
(b) Unless the commission finds otherwise by clear and convincing evidence, 21
a large energy facility that was included in the most recent integrated resource plan 22
approved under AS 42.05.293 is considered to satisfy the requirements of (a) of this 23
section. 24
(c) In this section, "large energy facility" means 25
(1) an electric power generating plant or combination of plants at a 26
single site with a combined capacity of 15,000 kilowatts or more with transmission 27
lines that directly interconnect the plant with the transmission system; or 28
(2) a high-voltage transmission line that 29
(A) has a capacity of 69 kilovolts or more; and 30
(B) is greater than 5 miles in length. 31
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* Sec. 2. AS 42.05.990 is amended by adding new paragraphs to read: 1
(14) "bulk-power system" means electrical generation resources, 2
transmission lines, interconnections, and associated equipment operated at voltages of 3
69 kilovolts or more by two or more interconnected utilities, at least one of which is 4
subject to the provisions of AS 42.05.291; 5
(15) "cybersecurity incident" means a malicious act or suspicious 6
event that disrupts or attempts to disrupt the security of data or the operation of 7
programmable electronic devices and communication networks, including hardware 8
and software that are essential to the reliable operation of the bulk-power system; 9
(16) "electric reliability organization" means an organization that is 10
certified by the commission under AS 42.05.292; 11
(17) "electric utility" means a public utility that provides electricity 12
service; 13
(18) "interconnected electric energy transmission network" means a 14
network of bulk-power system components operating in a geographic area that are 15
synchronized so that the failure of one or more of the components may adversely 16
affect the ability of the operators of other components within the system to maintain 17
reliable operation of the facilities within the control of the operators; 18
(19) "load-serving entity" means an electric utility that has a service 19
obligation to distribute power to end users; 20
(20) "reliable operation" means operating the elements of the bulk-21
power system within equipment and electric system thermal, voltage, and stability 22
limits so that instability, uncontrolled separation, or cascading failures of the system 23
will not occur as a result of a sudden disturbance, including a cybersecurity incident, 24
or unanticipated failure of system elements. 25
* Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 26
read: 27
TRANSITION: REGULATIONS. On or before July 1, 2020, the Regulatory 28
Commission of Alaska shall adopt regulations necessary to implement the changes made by 29
this Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), but not 30
before the effective date of the law implemented by the regulation. 31
31-LS0959\M
SB 123 -8- SB0123A
New Text Underlined [DELETED TEXT BRACKETED]
* Sec. 4. Section 3 of this Act takes effect immediately under AS 01.10.070(c). 1
* Sec. 5. Except as provided in sec. 4 of this Act, this Act takes effect July 1, 2020. 2
Running
Total Community served Utility/Power Producer
1 Akhiok City of Akhiok
2 Arctic Village Arctic Village Electric
3 Chalkyitsik Chalkyitsik Village Cncl
4 Diomede Diomede Joint Utilities
5 Hughes Hughes Power & Light
6 Koyukuk City of Koyukuk
7 Newtok Ungusraq Power Co
8 Tuluksak Tuluksak Traditional Council
Running
Total Community served Utility/Power Producer
9 Akiachak Akiachak Native Community
10 Akiak Akiak City Council
11 Aniak Aniak Light & Power
12 Atmautluak Atmautluak Tribal Utilities
13 Beaver Beaver Joint Utilities
14 Buckland Buckland, City of
15 Central Gold Country Energy
16 Chefornak Naterkaq Light Plant (City of Chefornak)
17 Chenega Bay Chenega Ira Council
18 Chignik Lake Chignik Lake Electric Utility
19 Chitina Chitina Electric Inc
20 Chuathbaluk Middle Kuskokwim Electric
21 Circle Circle Electric Utility
22 Clark's Point Clark's Point, City of
23 Crooked Creek Middle Kuskokwim Electric
24 Deering Ipnatchiaq Electric Company
25 Egegik Egegik Light & Power Co
26 False Pass False Pass, City of
27 Fort Yukon Gwitchyaa Zhee Utilities Company
28 Golovin Golovin Power Utilities
29 Igiugig Igiugig Electric Company
30 Karluk Alutiiq Power Company
31 Kipnuk Kipnuk Light Plant
32 Kokhanok Kokhanok Village Council
33 Koliganek New Koliganek Village Council
34 Kongiganak Puvurnaq Power Company
35 Kwethluk Kwethluk Incorporated d/b/a Kuiggluum Kallugvia
36 Kwigillingok Kwigillingok Power Company
37 Levelock Levelock Electrical Coop
38 Manley Hot Springs TDX Manley Generating LLC
39 Manokotak Manokotak Power Company
40 McGrath Mcgrath Light & Power
41 Napaskiak Napaskiak Electric Utility
Community List
1. The first priority for assessment and inventory category includes utilities that have required electrical
emergency assistance multiple times in the last three years.
2. The second priority for assesment and inventory category includes stand-alone utilities with one source of
dispatchable prime power, and/or higher effective customer rates, and/or smaller annual kWh sales, and/or
smaller local per resident tax revenues.
1 of 5
42 Nelson Lagoon Nelson Lagoon Electrical Coop
43 Nikolai Nikolai, City of
44 Nunam Iqua Nunam Iqua Electric Company
45 Pedro Bay Pedro Bay Village Council
46 Perryville Native Village of Perryville
47 Platinum Platinum, City of
48 Port Alsworth Tanalian Electric Cooperative
49 Port Heiden Port Heiden Utilities
50 Rampart Rampart Village Council
51 Ruby Ruby, City of
52 Saint George Saint George, City of
53 Sleetmute Middle Kuskokwim Electric
54 Stevens Village Stevens Village Ira Council
55 Stony River Middle Kuskokwim Electric
56 Takotna Takotna Community Assoc Inc
57 Tanana Tanana Power Company Inc
58 Tatitlek Tatitlek Village Ira Council
59 Tuntutuliak Tuntutuliak Community
60 Venetie Venetie Village Electric
61 White Mountain White Mountain, City of
Running
Total Community served Utility/Power Producer
62 Akutan Akutan, City of
63 Atka Atka, City of
64 Chignik Chignik, City of
65 Chignik Lagoon Chignik Lagoon Power Utility
66 Cold Bay G & K Inc
67 Galena Galena, City of
68 Gustavus Gustavus Electric Co
69 King Cove King Cove, City of
70 Larsen Bay Larsen Bay Utility Company
71 Metlakatla Metlakatla Power & Light
72 Ouzinkie Ouzinkie, City of
73 Pelican Pelican Utility
74 Pilot Point Pilot Point Electric Utility
75 Saint Paul Saint Paul Municipal Electric
76 Tenakee Springs Tenakee Springs, City of
77 Unalakleet Unalakleet Valley Electric Cooperative
3. The third priority for assessment and inventory category includes stand-alone utilities that have a lower
effective customer rates, and/or more than one dispatchable prime power plant source for the community, and/or
larger annual kWh sales, and/or larger local per resident tax revenues.
2 of 5
Running
Total Community served Utility/Power Producer
78 Adak TDX Adak Generating LLC
79 Alakanuk Alaska Village Electric Cooperative
80 Allakaket, Alatna Alaska Power & Telephone Company
81 Ambler Alaska Village Electric Cooperative
82 Anaktuvuk Pass North Slope Borough Power & Light
83 Angoon Inside Passage Electric
84 Anvik Alaska Village Electric Cooperative
85 Atqasuk North Slope Borough Power & Light
86 Brevig Mission Alaska Village Electric Cooperative
87 Chevak Alaska Village Electric Cooperative
88 Chistochina Alaska Power & Telephone Company
89 Craig Alaska Power & Telephone Company
90 Eagle, Eagle Village Alaska Power & Telephone Company
91 Eagle, Eagle Village Alaska Power & Telephone Company
92 Eek Alaska Village Electric Cooperative
93 Ekwok Alaska Village Electric Cooperative
94 Elim Alaska Village Electric Cooperative
95 Emmonak Alaska Village Electric Cooperative
96 Gambell Alaska Village Electric Cooperative
97 Goodnews Bay Alaska Village Electric Cooperative
98 Grayling Alaska Village Electric Cooperative
99 Haines, Covenant Life Alaska Power & Telephone Company
100 Healy Lake Alaska Power & Telephone Company
101 Holy Cross Alaska Village Electric Cooperative
102 Hoonah Inside Passage Electric
103 Hooper Bay Alaska Village Electric Cooperative
104 Huslia Alaska Village Electric Cooperative
105 Iliamna I-N-N Electric Coop, Inc
106 Kake Inside Passage Electric
107 Kaktovik North Slope Borough Power & Light
108 Kalskag Alaska Village Electric Cooperative
109 Kaltag Alaska Village Electric Cooperative
110 Kasigluk Alaska Village Electric Cooperative
111 Kiana Alaska Village Electric Cooperative
112 Kivalina Alaska Village Electric Cooperative
113 Kobuk Kobuk Valley Electric Company
114 Kotlik Alaska Village Electric Cooperative
115 Koyuk Alaska Village Electric Cooperative
116 Lower Kalskag Alaska Village Electric Cooperative
117 Marshall Alaska Village Electric Cooperative
118 Mekoryuk Alaska Village Electric Cooperative
Running
Total Community served Utility/Power Producer
119 Minto Alaska Village Electric Cooperative
4a. The forth priority, part one, for assessment and inventory category includes larger utilities serving multiple
communities, and/or with a larger skilled workforce capacity, and/or more than one dispatchable prime power
plant source for the community, and/or greater access to capital.
4b. The forth priority part two, for assessment and inventory category includes larger utilities serving multiple
communities, and/or with a larger skilled workforce capacity, and/or more than one dispatchable prime power
plant source for the community, and/or greater access to capital.
3 of 5
120 Mountain Village Alaska Village Electric Cooperative
121 Napakiak Napakiak Ircinraq
122 New Stuyahok Alaska Village Electric Cooperative
123 Newhalen I-N-N Electric Coop, Inc
124 Nightmute Alaska Village Electric Cooperative
125 Noatak Alaska Village Electric Cooperative
126 Nondalton I-N-N Electric Coop, Inc
127 Noorvik Alaska Village Electric Cooperative
128 Northway Alaska Power & Telephone Company
129 Nuiqsut North Slope Borough Power & Light
130 Nulato Alaska Village Electric Cooperative
131 Nunapitchuk Alaska Village Electric Cooperative
132 Old Harbor Alaska Village Electric Cooperative
133 Pilot Station Alaska Village Electric Cooperative
134 Pitkas Point Alaska Village Electric Cooperative
135 Point Hope North Slope Borough Power & Light
136 Point Lay North Slope Borough Power & Light
137 Quinhagak Alaska Village Electric Cooperative
138 Russian Mission Alaska Village Electric Cooperative
139 Saint Mary's, Andreafsky Alaska Village Electric Cooperative
140 Saint Michael Alaska Village Electric Cooperative
141 Sand Point TDX Corporation
142 Savoonga Alaska Village Electric Cooperative
143 Scammon Bay Alaska Village Electric Cooperative
144 Selawik Alaska Village Electric Cooperative
145 Shageluk Alaska Village Electric Cooperative
146 Shaktoolik Alaska Village Electric Cooperative
147 Shishmaref Alaska Village Electric Cooperative
148 Shungnak Alaska Village Electric Cooperative
149 Skagway Alaska Power & Telephone Company
150 Slana Alaska Power & Telephone Company
151 Stebbins Alaska Village Electric Cooperative
152 Teller Alaska Village Electric Cooperative
153 Togiak Alaska Village Electric Cooperative
154 Tok, Tanacross Alaska Power & Telephone Company
155 Toksook Bay Alaska Village Electric Cooperative
156 Tununak Alaska Village Electric Cooperative
157 Wainwright North Slope Borough Power & Light
158 Wales Alaska Village Electric Cooperative
159 Whale Pass Alaska Power & Telephone Company
160 Yakutat Alaska Village Electric Cooperative
Running
Total Community served Utility/Power Producer
161 Allakaket, Alatna Alaska Power & Telephone Company
162 Chilkat Valley Inside Passage Electric
163 Coffman Cove Alaska Power & Telephone Company
164 Cordova, Eyak Cordova Electric Cooperative
165 Dillingham, Aleknagik Nushagak Electric Cooperative
166 Dot Lake, Dot Lake Village Alaska Power & Telephone Company
5. The fifth priority for assessment and inventory category includes larger utilities serving multiple communities,
and/or utilities purchasing power via a tieline, and/or no full time primary genertion in the community, and/or
with a larger skilled workforce capacity, and/or greater access to capital.
4 of 5
167 Haines, Covenant Life Alaska Power & Telephone Company
168 Hollis Alaska Power & Telephone Company
169 Hydaburg Alaska Power & Telephone Company
170 Klawock Alaska Power & Telephone Company
171 Klukwan Inside Passage Electric
172 Lutak Alaska Power & Telephone Company
173 Mosquito Lake Alaska Power & Telephone Company
174 Mud Bay Alaska Power & Telephone Company
175 Naknek, South Naknek, King Salmon Naknek Electric Association
176 Naukati Bay Alaska Power & Telephone Company
177 Northway, Northway Village, Northway JunctionAlaska Power & Telephone Company
178 Oscarville Alaska Village Electric Cooperative
179 Tetlin Alaska Power & Telephone Company
180 Thorne Bay, Kasaan Alaska Power & Telephone Company
181 Tok, Tanacross Alaska Power & Telephone Company
183 Twin Hills Twin Hills Village Council
5 of 5
ALASKA ENERGY AUTHORITYBRADLEY LAKE DEPRECIATION SCHEDULE - for AEA BoardAs of 06/30/2019Prepared: 01/06/2020FERC CLASS DescriptionUseful Life (in years) Cost @ 6/30/19Accumulated depreciation @ 7/1/18Current Year DepreciationCurrent Year SaleAccumulated depreciation @ 6/30/19NET BOOK VALUEAccessory electric equipmentBRADLEY PRD-ACCESSORY ELECT50 7,992,259.66 (4,281,034.89) (159,844.00) 0.00 (4,440,878.89) 3,551,380.77BRADELY PROD - SCADA 50 1,633,734.50 (375,766.00) (32,676.00) 0.00 (408,442.00) 1,225,292.50BRADLEY - CABLES 50 2,321,922.94 (487,479.00) (46,440.00) 0.00 (533,919.00) 1,788,003.94BRADLEY PROD-RTUS 50 86,905.27 (17,321.00) (1,740.00) 0.00 (19,061.00) 67,844.27BRADLEY PROD-RFL RELAYS 50 251,092.69 (52,730.00) (5,020.00) 0.00 (57,750.00) 193,342.69BRADLEY BACKUP BATTERIES 50 81,766.40 (14,712.00) (1,636.00) 0.00 (16,348.00) 65,418.40BRADLEY PWR SYS STABLZR- EXCTR 20 619,205.10 (294,121.00) (30,960.00) 0.00 (325,081.00) 294,124.10BRDLEY TRANSFORMER PIT GRATING 40 42,546.14 (7,979.00) (1,064.00) 0.00 (9,043.00) 33,503.14BRADLEY ELECTRICAL-MECHANICAL RELAYS 50 1,277,197.06 (114,948.00) (25,544.00) 0.00 (140,492.00) 1,136,705.06BRADLEY ACCUSONIC FLOW METER MONITO 50 16,422.21 (1,476.00) (328.00) 0.00 (1,804.00) 14,618.21BRADLEY REPLACE JEM METERS W/ION METERS 50 91,338.00 (8,221.00) (1,828.00) 0.00 (10,049.00) 81,289.00BRADLEY EMERGENCY FAC GENERATOR 50 53,060.05 (4,775.00) (1,060.00) 0.00 (5,835.00) 47,225.05DCS SECURITY INTERFACE FOR DATA ACCESS 50 141,703.46 (9,920.03) (2,836.00) 0.00 (12,756.03) 128,947.43GENERATOR PARTIAL DISCHARGE MONITOR 50 107,012.12 (6,420.00) (2,140.00) 0.00 (8,560.00) 98,452.12Accessory electric equipment subtotal 14,716,165.60 (5,676,902.92) (313,116.00) 0.00 (5,990,018.92) 8,726,146.68Communication equipmentBRDLY GEN PLNT-COMMUNICATN EQ 12.5 4,884,366.06 (4,884,366.06) 0.000.00 (4,884,366.06) 0.00BRADLEY TELEPHONE/NETWORK UPGR 12.5 76,181.43 (42,689.00) (6,700.00) 0.00 (49,389.00) 26,792.43Communication equipment subtotal 4,960,547.49 (4,927,055.06) (6,700.00) 0.00 (4,933,755.06) 26,792.43Structures and improvementsBRADLEY HALCON FIRE SYS RPLC 33 3,284.23 (741.00) (100.00) 0.00 (841.00) 2,443.23Structures and improvements subtotal 3,284.23 (741.00) (100.00) 0.00 (841.00) 2,443.23Miscellaneous equipmentBRDLY GEN PLNT-MISC EQUIPMENT 7.5 5,686.40 (5,686.40) 0.00 0.00 (5,686.40) 0.00BRADLEY WORK MGMT SYSTEM 5 37,423.39 (37,423.39) 0.00 0.00 (37,423.39)0.00BRADLEY TEST EQUIPMENT 5 19,957.32 (19,957.32) 0.00 0.00 (19,957.32) 0.00BRADLEY SURVEILLANCE CAMERAS 33 15,040.00 (2,031.00) (452.00) 0.00 (2,483.00) 12,557.00Miscellaneous equipment subtotal 78,107.11 (65,098.11) (452.00) 0.00 (65,550.11) 12,557.00Miscellaneous power plant equipmentBRDLY PRD-MISC PLANT EQUIPMENT 33 6,895,478.84 (5,512,911.01) (206,864.00) 0.00 (5,719,775.01) 1,175,703.83BRADLEY MILLING MACHINE 33 26,517.24 (7,559.00) (796.00) 0.00 (8,355.00) 18,162.24BRADLEY FIRE WATER CONTROL 33 29,039.72 (7,838.00) (872.00) 0.00 (8,710.00) 20,329.72BRDLY EXCAVATOR W/ MOWER 33 203,880.95 (55,027.00) (6,116.00) 0.00 (61,143.00) 142,737.95BRADLEY VEHICLE LIFT 33 14,180.09 (3,824.00) (424.00) 0.00 (4,248.00)9,932.09BRADLEY FW RELIEF VALVE 33 28,382.14 (7,231.00) (852.00) 0.00 (8,083.00) 20,299.14BRADLEY VIBRATION MONITORG SYS 20 187,426.59 (70,258.00) (9,372.00)0.00 (79,630.00) 107,796.59BRADLEY UTILITY VEHICLE 33 5,499.95 (741.00) (164.00) 0.00 (905.00) 4,594.95BRADLEY ROAD GRADER 33 34,178.00 (4,613.00) (1,024.00) 0.00 (5,637.00) 28,541.001 of 4
ALASKA ENERGY AUTHORITYBRADLEY LAKE DEPRECIATION SCHEDULE - for AEA BoardAs of 06/30/2019Prepared: 01/06/2020FERC CLASS DescriptionUseful Life (in years) Cost @ 6/30/19Accumulated depreciation @ 7/1/18Current Year DepreciationCurrent Year SaleAccumulated depreciation @ 6/30/19NET BOOK VALUEBRADLEY FISH WATER VALVE ACTUATORS 33 405,105.54 (6,319.00) (8,738.00) 0.00 (15,057.00) 390,048.54BRADLEY MOBIL CRANE 20 88,874.62 (2,222.00) (4,444.00) 0.00 (6,666.00) 82,208.62BRADLEY 2016 Caterpiller Loader 950M 33 263,306.00 0.00 (7,900.00) 0.00 (7,900.00) 255,406.00Miscellaneous power plant equipment subtotal 8,181,869.68 (5,678,543.01) (247,566.00) 0.00 (5,926,109.01) 2,255,760.67Office furniture and equipmentBRDLY GEN-OFFICE FURN & EQUIP 14 10,887.74 (6,990.74) (764.00) 0.00 (7,754.74) 3,133.00Office furniture and equipment subtotal 10,887.74 (6,990.74) (764.00) 0.00 (7,754.74) 3,133.00OrganizationBRADLEY LAKE ORG 50 14,282.18 (6,691.70) (284.00) 0.00 (6,975.70) 7,306.48Organization subtotal 14,282.18 (6,691.70) (284.00) 0.00 (6,975.70) 7,306.48Overhead conductors and devicesBRDLY TRANS-OH CONDUCTORS&DEVI 35 5,870,127.19 (4,481,754.00) (167,300.00) 0.00 (4,649,054.00) 1,221,073.19Overhead conductors and devices subtotal 5,870,127.19 (4,481,754.00) (167,300.00) 0.00 (4,649,054.00) 1,221,073.19Reservoirs, dams, and waterwaysBRADLEY PROD-RESVR, DAMS &WWAY 50 130,239,722.36 (69,776,473.68) (2,604,796.00) 0.00 (72,381,269.68) 57,858,452.68BRADLEY CATHODIC PROTECTION 50 53,104.72 (9,489.00) (1,064.00) 0.00 (10,553.00) 42,551.72BRADLEY FISHWATER SCREEN DEBRIS REMOVAL 50 312,236.43 (15,611.00) (6,244.00) 0.00 (21,855.00) 290,381.43Reservoirs, dams, and waterways subtotal 130,605,063.51 (69,801,573.68) (2,612,104.00) 0.00 (72,413,677.68) 58,191,385.83Roads, railroads and bridgesBRDLY PROD-RDS, RAIL, BRG,DOCK 50 24,946,620.27 (13,363,832.06) (498,932.00) 0.00 (13,862,764.06) 11,083,856.21BRADLEY CULVERT REPAIRS 50 675,966.79 (101,394.00) (13,520.00) 0.00 (114,914.00) 561,052.79Roads, railroads and bridges subtotal 25,622,587.06 (13,465,226.06) (512,452.00) 0.00 (13,977,678.06) 11,644,909.00Station equipmentBRDLY TRANS-STATION EQUIPMENT 36 9,964,940.36 (7,415,950.48) (274,036.00) 0.00 (7,689,986.48) 2,274,953.88BRADLEY Soldotna/Daves Creek SVCs 20 8,517,991.11 (106,475.00) (425,900.00) 0.00 (532,375.00) 7,985,616.11Station equipment subtotal 18,482,931.47 (7,522,425.48) (699,936.00) 0.00 (8,222,361.48) 10,260,569.99Structures and improvementsBRADLEY PROD-STRUCTURES & IMP 20 41,641,605.32 (22,305,017.17) (832,832.00) 0.00 (23,137,849.17) 18,503,756.15BRDLY TRANS-STRUCTURES & IMP 35 1,939,677.56 (1,480,867.28) (55,280.00) 0.00 (1,536,147.28) 403,530.28BRDLY CAMP RESIDENCIES MODS 50500,179.69 (75,000.00) (10,004.00) 0.00 (85,004.00) 415,175.69Structures and improvements subtotal 44,081,462.57 (23,860,884.45) (898,116.00) 0.00 (24,759,000.45) 19,322,462.12Tools, shop and garage equipmentBRDLY GEN PLNT-TOOLS, SHOP EQ 0.00 61,169.24 (61,169.24) 0.00 0.00 (61,169.24) 0.00BRADLEY GEN- MAN LIFT 5.5 73,900.00 (73,900.00) 0.00 0.00 (73,900.00)0.00BRADLEY GEN - SNOW PLOW ATTCH 5.5 14,442.14 (14,442.14) 0.00 0.00 (14,442.14) 0.002 of 4
ALASKA ENERGY AUTHORITYBRADLEY LAKE DEPRECIATION SCHEDULE - for AEA BoardAs of 06/30/2019Prepared: 01/06/2020FERC CLASS DescriptionUseful Life (in years) Cost @ 6/30/19Accumulated depreciation @ 7/1/18Current Year DepreciationCurrent Year SaleAccumulated depreciation @ 6/30/19NET BOOK VALUEBRADLEY SEWER CLEANER 5.5 47,471.68 (47,471.68) 0.00 0.00 (47,471.68)0.00BRADLEY MOWER ATTACHMENT 5.5 1,097.14 (1,097.14) 0.00 0.00 (1,097.14)0.00BRADLEY TIRE MACHINE 5.5 15,245.80 0.00 0.00 0.00 0.00 15,245.80Tools, shop and garage equipment subtotal213,326.00 (198,080.20)0.00 0.00 (198,080.20) 15,245.80Towers and fixturesBRDLY TRANS-TOWERS & FIXTURES 2.85 23,960,573.44 (17,843,474.48) (682,876.00) 0.00 (18,526,350.48) 5,434,222.96Towers and fixtures subtotal 23,960,573.44 (17,843,474.48) (682,876.00) 0.00 (18,526,350.48) 5,434,222.96Transportation equipmentBRDLY GEN PLNT-SNOW MACHINES 5.5 11,067.12 (11,067.12) 0.00 0.00 (11,067.12) 0.00BRDLY GEN PLNT-TRANSPORTATION 5.5 17,560.24 (17,560.24) 0.00 0.00 (17,560.24) 0.00BRADLEY GEN-FORD F250 TRUCK 5.5 35,641.00 (35,641.00) 0.00 0.00 (35,641.00) 0.00BRADLEY TRACTOR W/BACKHOE LOAD 5.5 23,500.00 (23,500.00) 0.00 0.00 (23,500.00) 0.00BRADLEY 2009 CHEVROLET SUBURBAN 5.5 31,004.00 (31,004.00) 0.00 0.00 (31,004.00) 0.00BRADLEY TRUCK - 2015 FORD F250 5 32,306.00 (22,319.90) (6,460.00) 0.00 (28,779.90) 3,526.10BRADLEY TRUCK - 2015 FORD F250 5 32,306.00 (22,319.90) (6,460.00) 0.00 (28,779.90) 3,526.10BRADLEY 2018 FORD F150 10 34,693.28 (1,735.00) (3,468.00) 0.00 (5,203.00) 29,490.28BRDLY GEN PLANT-TRANSPORT EQUIP 8.5 0.00 (29,130.18) 0.00 29,130.18 0.00 0.002007 Chevrolet Silverado 5 8,800.00 (440.00) (1,760.00) 0.00 (2,200.00) 6,600.002006 Chevrolet Silverado 5 7,700.00 (385.00) (1,540.00) 0.00 (1,925.00) 5,775.002016 Ford F350 5 64,780.17 (2,972.00) (12,957.00) 0.00 (15,929.00) 48,851.17BRADLEY 2017 Ford F550 5 57,016.00 0.00 (11,404.00) 0.00 (11,404.00) 45,612.00Transportation equipment subtotal 356,373.81 (198,074.34) (44,049.00) 29,130.18 (212,993.16) 143,380.65Water wheels, turbines and generatorsBRADLY PRD-WHEEL, TURBINE, GEN 40 28,010,883.28 (18,738,909.66) (700,272.00) 0.00 (19,439,181.66) 8,571,701.62BRADLEY PROD-GOVERNOR 40 5,150,289.12 (1,477,269.00) (128,756.00) 0.00 (1,606,025.00) 3,544,264.12BRADLEY PROD-NEEDLE 40 1,484,314.23 (500,957.65) (37,108.00) 0.00 (538,065.65) 946,248.58BRADLEY PROD-RUNNERS 40 1,988,699.18 (519,926.00) (49,716.00) 0.00 (569,642.00) 1,419,057.18BRADLEY STABILITY STDY TO REPAIR POWER HSE EXCITER40 99,799.73 (11,227.00) (2,496.00) 0.00 (13,723.00) 86,076.73LUBE OIL PURIFICATION SYSTEM 40 47,723.09 (3,579.00) (1,192.00) 0.00 (4,771.00) 42,952.09GOVERNOR PLC REPLACEMENT 40 1,213,864.43 (106,214.31) (30,348.00) 0.00 (136,562.31) 1,077,302.12BRADLEY TURBINE NOZZLE REPAIR 40 1,428,861.07 (89,151.00) (35,720.00) 0.00 (124,871.00) 1,303,990.07BRADLEY GENERATOR #2 40 582,341.67 0.00 0.00 0.00 0.00 582,341.67Water wheels, turbines and generators subtotal 40,006,775.80 (21,447,233.62) (985,608.00) 0.00 (22,432,841.62) 17,573,934.18CIP-Accessory electric equipmentBRADLEY CIP-23340 N/A - CIP 622,665.00 0.00 0.00 0.00 0.00 622,665.00CIP-Accessory electric equipment subtotal 622,665.00 0.00 0.00 0.000.00 622,665.00Land and land rightsBRADLEY PROD-LAND & RIGHTS N/A 1,247,063.83 0.00 0.00 0.00 0.00 1,247,063.833 of 4
ALASKA ENERGY AUTHORITYBRADLEY LAKE DEPRECIATION SCHEDULE - for AEA BoardAs of 06/30/2019Prepared: 01/06/2020FERC CLASS DescriptionUseful Life (in years) Cost @ 6/30/19Accumulated depreciation @ 7/1/18Current Year DepreciationCurrent Year SaleAccumulated depreciation @ 6/30/19NET BOOK VALUEBRDLY TRANS-LAND&LAND RIGHTS N/A 1,047,447.51 0.00 0.00 0.00 0.00 1,047,447.51Land and land rights subtotal 2,294,511.34 0.00 0.00 0.00 0.00 2,294,511.34CIP-Reservoirs, dams, and waterwaysBRADLEY BATTLE CRK CIP N/A - CIP 28,283,912.80 0.00 0.00 0.00 0.00 28,283,912.80BRADLEY CIP 23320 N/A - CIP 5,635.93 0.00 0.00 0.00 0.00 5,635.93CIP-Reservoirs, dams, and waterways subtotal 28,289,548.73 0.00 0.00 0.00 0.00 28,289,548.73Roads and trailsBRDLY TRANS-ROAD S &TRAILS N/A 4,034,943.66 0.00 0.00 0.00 0.00 4,034,943.66Roads and trails subtotal 4,034,943.66 0.00 0.00 0.00 0.00 4,034,943.66CIP-Structures and improvementsBRADLEY CIP 23310 N/A - CIP 578,089.51 0.00 0.00 0.00 0.00 578,089.51CIP-Structures and improvements subtotal 578,089.51 0.00 0.00 0.00 0.00 578,089.51Fund Total352,984,123.12 (175,180,748.85) (7,171,423.00) 29,130.18(182,323,041.67) 170,661,081.454 of 4
ALASKA ENERGY AUTHORITYAK INTERTIE DEPRECIATION SCHEDULE - for AEA BoardAs of 06/30/2019Prepared: 01/06/2020FERC CLASS DescriptionUseful Life (in years) Cost @ 6/30/19Accumulated depreciation @ 7/1/18Current Year DepreciationAccumulated depreciation @ 6/30/19 NET BOOK VALUEOverhead conductors and devicesAFI-POLES & FIXTURES 20.5 834,978.63 (834,978.63) 0.00 (834,978.63) 0.00AFI-CONDUCTORS & DEVICES 35 23,597,407.30 (21,866,704.07) (672,526.00) (22,539,230.07) 1,058,177.23Overhead conductors and devices subtotal 24,432,385.93 (22,701,682.70) (672,526.00) (23,374,208.70) 1,058,177.23Station EquipmentAFI-STATION EQUIPMENT 36.5 27,911,217.46 (16,907,878.71) (767,558.00) (17,675,436.71) 10,235,780.75Station Equipment subtotal 27,911,217.46 (16,907,878.71) (767,558.00) (17,675,436.71) 10,235,780.75Structures and improvementsAFI-STRUCTURES & IMPROVEMENTS 35 4,214,003.59 (3,904,934.90) (120,099.00) (4,025,033.90) 188,969.69Structures and improvements subtotal 4,214,003.59 (3,904,934.90) (120,099.00) (4,025,033.90) 188,969.69Towers and fixturesAKI-TOWER & FIXTURES 35 74,754,844.85 (67,662,350.45) (2,130,513.00) (69,792,863.45) 4,961,981.40Towers and fixtures subtotal 74,754,844.85 (67,662,350.45) (2,130,513.00) (69,792,863.45) 4,961,981.40Land and land rightsAFI-LAND & LAND RIGHTS N/A 4,787,252.00 0.00 0.00 0.00 4,787,252.00Land and land rights subtotal 4,787,252.00 0.00 0.00 0.00 4,787,252.00CIPAFI CIP N/A-CIP 302,017.23 0.00 0.00 0.00 302,017.23CIP subtotal 302,017.23 0.00 0.00 0.00 302,017.23Roads and trailsAFI-ROADS & TRAILS N/A 94,942.76 0.00 0.00 0.00 94,942.76Roads and trails subtotal 94,942.76 0.00 0.00 0.00 94,942.76Fund Total 136,496,663.82 (111,176,846.76) (3,690,696.00) (114,867,542.76) 21,629,121.061 of 1
813 West Northern Lights Boulevard, Anchorage, Alaska 99503 Phone (907) 771-3000 Fax (907) 771-3044 Toll Free (888) 300-8534 Email info@akenergyauthority.org
REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG
RGYAUTHORITY.ORG
2019/2020 AEA Community Outreach Schedule
Last modified on January 7, 2020
# Status Date Organization AEA Staff
1. Past Monday, November 18, 2019 Alaska Municipal League Annual Conference Tom Benkert
2. Past Thursday, November 21, 2019 Alaska Municipal League Annual Conference Jeff Williams
3. Past Thursday, December 5, 2019 BIA Tribal Providers Conference Curtis W. Thayer
4. Past Monday, December 9, 2019 Anchorage Chamber of Commerce Curtis W. Thayer
5. Past Wednesday, December 18, 2019 Chugiak-Eagle River Chamber of Commerce Curtis W. Thayer
6. Upcoming January 10, 2020 Commonwealth North’s Energy Action Coalition Curtis W. Thayer
7. Upcoming Januauary, 28, 2020 Community and Regional Affairs Committee Curtis W. Thayer
8. Upcoming January 29, 2020 Alaska Power Association’s Legislative Conference Curtis W. Thayer
9. Upcoming February 4, 2020 Southeast Conference Mid-Session Summit Curtis W. Thayer
10. Upcoming February 10-14, 2020 Alaska Forum on the Environment AEA Team Members:
“ a. Welcome Remarks during one of the Keynotes Curtis W. Thayer
“ b. Railbelt Wind Power Kirk Warren
“ c. How to Choose Diesel Generator for Your Rural Powerhouse Panel Tim Sandstrom
“ d. How to Choose Diesel Generator for Your Rural Powerhouse Panel David Lockard
“ e. Electric Vehicles are here! Betsy McGregor
“ f. Bulk Fuel Tank Farm Updates: Construction, Training, and Regulations Panel Bill Price
g. Renewable Energy and Rural Alaska Powerhouse Panel Bill Price
“ h. Financing Renewable Energy Tom Benkert
“ i. Railbelt Solar Panel Tom Benkert
“ j. Rooftop Solar in your Alaskan Community Tom Benkert
“ k. Biomass Fuels in Alaska Panel Taylor Asher
11. Upcoming February 20, 2020 Greater Wasilla Chamber of Commerce Curtis W. Thayer
12. Upcoming February 26, 2020 (Tentative) Greater Palmer Chamber of Commerce Curtis W. Thayer
13. Upcoming March 10, 2020 Greater Fairbanks Chamber of Commerce Curtis W. Thayer
14. Upcoming April, 21, 2020 (Tentative) Homer Chamber of Commerce Curtis W. Thayer
15. Upcoming To Be Determined, 2020 Bethel Chamber of Commerce Curtis W. Thayer
16. Upcoming To Be Determined, 2020 Kenai/Soldotna Chamber of Commerce Curtis W. Thayer
AEA LOAN DASHBOARD REPORT
AEA POWER PROJECT LOAN FUND
YEAR TO DATE
07/01/2019 LOAN ACTIVITY EARNINGS
START DATE LOAN CATEGORY STARTING
BALANCE
FUNDS
DISBURSED
PAYMENTS
RECEIVED
ENDING
BALANCE
INTEREST
RECEIVED
LATE FEES
RECEIVED
INTEREST +
LATE FEES
20 AEA POWER PROJECT FUND LOANS 23,690,152 3,508,234 (139,178) 27,059,208 111,441 115 111,556
TOTAL # OF PPF LOANS
1
# OF DELINQUENT PPF
LOANS Outstanding Loans per Trial Balance 27,059,208$
$1,852 Uncommitted Cash Balance 10,661,578$
LOANS DELINQUENT
AMOUNT ($)Loan Commitments 1,125,659$
0.006%Total Loan Program 38,846,445$
% OF DELINQUENT
LOANS TO PORTFOLIO
BALANCE
11/30/2019
END DATE
FISCAL YEAR-TO-DATE LOAN PORTFOLIO ACTIVITY (07/01/2019 - 11/30/2019 )
Waterfall Creek Hydro - King Cove, Alaska
Print Date: 12/6/2019
Page 1 of 2
AEA POWER PROJECT FUND LOANS BY ENERGY REGION & PROJECT TYPE
OUTSTANDING BALANCES & NEW ACTIVITY
ENERGY REGION AEA PPF LOAN
BALANCE
REMAINING
LOAN
COMMITMENTS
NEW
APPLICATIONS
IN PROCESS
# OF AEA PPF
LOANS TOTAL
ALEUTIANS 2,614,042 - 65,000 4 2,679,042
BERING STRAITS - - - 0 -
BRISTOL BAY 474,177 - 514,500 2 988,677
COPPER RIVER/
CHUGACH - - - 0 -
KODIAK 88,084 0 - 2 88,084
LOWER YUKON-
KUSKOKWIM 419,222 - - 2 419,222
NORTH SLOPE - - - 0 -
NORTHWEST ARCTIC - - - 0 -
RAILBELT 4,210,976 (0) - 3 4,210,976
SOUTHEAST 19,059,615 1,061,293 - 3 20,120,908
YUKON-KOYUKUK/
UPPER TANANA 193,092 64,366 2,258,829 4 2,516,287
27,059,208 1,125,659 2,838,329 20 31,023,196 TOTAL
BIOMASS
$108,894
CONSERVATION
$15,084DIESEL
$1,041,963
HYDRO
$24,078,670 SOLAR
$814,234
TANK FARM
$2,258,829
WIND
$2,705,522
AEA PPF LOANS BY PROJECT TYPE -NEW & OUTSTANDING BALANCE
BIOMASS
1
CONSERVATION
1
DIESEL
5
HYDRO
7
SOLAR
1
TANK FARM
1
WIND
4
AEA PPF LOANS BY PROJECT TYPE
Print Date: 12/6/2019 Page 2 of 2
813 West Northern Lights Boulevard, Anchorage, Alaska 99503 | P 907.771.3000 | Toll Free 888.300.8534 | F 907.771.3044 | WWW.AKENERGYAUTHORITY.ORG
REDUCING THE COST OF ENERGY IN ALASKA
AEA IN THE NEWS
December 11, 2019 – AEA was mentioned by the Alaska Journal of Commerce in the article,
Bradley Lake power line outage tops $10M in cost to Railbelt ratepayers.
https://www.alaskajournal.com/2019-12-11/bradley-lake-power-line-outage-tops-10m-cost-
railbelt-ratepayers
December 13, 2019 – AEA was mentioned by the Anchorage Daily News in the article, Bradley
Lake power line outage from wildfire tops $10M in cost to Alaska Railbelt ratepayers.
https://www.adn.com/business-economy/2019/12/13/bradley-lake-power-line-outage-from-
wildfire-tops-10m-in-cost-to-alaska-railbelt-ratepayers/
December 15, 2019 – AEA was mentioned by the Fairbanks Daily News-Miner in the article,
Students win in Power Challenge.
http://www.newsminer.com/business/students-win-in-power-challenge/article_857c6a02-
1e32-11ea-8813-978e652df68e.html
December 18, 2019 – AEA was mentioned by CleanTechnica in the article, Tesla To Provide 93
MWh Grid-Scale Storage Battery For Electricity Co-Op In Alaska.
https://cleantechnica.com/2019/12/18/tesla-to-provide-93-mwh-grid-scale-storage-battery-
for-electricity-co-op-in-alaska/
December 19, 2019 – AEA was mentioned by KTUU in the article, Hydro power is back
following repairs of fire-damaged transmission lines.
https://www.ktuu.com/content/news/Hydro-power-is-back-following-repairs-of-fire-
damaged-transmission-lines-566363171.html
December 19, 2019 – AEA was mentioned by the Mat-Su Valley Frontiersman in the article,
MEA part of agreement to create Railbelt Reliability Council.
https://www.frontiersman.com/news/mea-part-of-agreement-to-create-railbelt-reliability-
council/article_be165fc4-22cb-11ea-8ac5-e76c6c9fdffb.html
December 20, 2019 – AEA was mentioned by the Alaska Journal of Commerce in the article,
Costly Southcentral power line outage repaired.
https://www.alaskajournal.com/2019-12-20/costly-southcentral-power-line-outage-repaired
December 21, 2019 – AEA was mentioned by the Fairbanks Daily News-Miner in the article,
GVEA, 5 other utilities form nonprofit to oversee electrical grid.
http://www.newsminer.com/news/local_news/gvea-other-utilities-form-nonprofit-to-
oversee-electrical-grid/article_d0f636f8-23c7-11ea-b762-270d344bf000.html
December 22, 2019 – AEA was mentioned by the Alaska Native News in the article, Railbelt
Utilities Sign Groundbreaking Agreement.
https://alaska-native-news.com/railbelt-utilities-sign-groundbreaking-agreement/46541/