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HomeMy WebLinkAbout2020-07-24 BPMC Agenda and docsBRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) MEETING AGENDA Friday, July 24, 2020 via teleconference Immediately Following the 9:00 a.m. IMC Meeting To participate dial 1-888-585-9008 and when prompted, enter code 676-392-603# 1. CALL TO ORDER 2. ROLL CALL FOR COMMITTEE MEMBERS 3. PUBLIC ROLL CALL 4. PUBLIC COMMENTS 5. AGENDA APPROVAL 6. PRIOR MINUTES – May 29, 2020 7. NEW BUSINESS A. Annual Elections B. Construction camp storage AEA C. Resolution 20-02 Adoption of O&D Report O&D Review of Proposed Transaction Definition of Prudent Utility Practice – Power Revenue Bond Resolution AEA D. Resolution 20-03 Approval of Proposed Transaction Financing Financing Term Sheet AEA E. Motion – Power Sales Agreement - Excess Payments AEA 8. OLD BUSINESS A. Battle Creek Project Update AEA B. Operators Report HEA C. O&D Report GVEA 9. COMMITTEE REPORTS – Budget to Actual Budget Subcommittee 10. EXECUTIVE SESSION – Discuss confidential matters related to Battle Creek Claims and S/Q Line 11. COMMITTEE ASSIGNMENTS 12. MEMBERS COMMENTS 13. NEXT MEETING DATE - Friday, September 25, 2020 14. ADJOURNMENT FERC P-8221-AK / Orion Project #09P50041 July 14th, 2020 Bryan Carey, P.E. – Project Manager Alaska Energy Authority 813 W Northern Lights Blvd Anchorage, AK 99503 Subject: Orion Camp Storage Bryan, As discussed, Orion is interested in exploring options to store the camp used on the Bradley Lake Project on site after project completion until it is time to mobilize to it’s next location. Timeframe would be discussed and established prior to executing an agreement. Camp would be left on site, fully decommissioned and ready to be loaded on a barge as it is stored. Please let me know any questions/comments or additional details you may need. Your time and assistance is greatly appreciated. Thanks Bryan. Sincerely, Douglas M. Dorton Project Manager Orion Marine Group O-(907)561-9811 C-(907)205-6402 ddorton@orionmarinegroup.com BPMC Resolution No. 20-02; Adoption of O&D Report on Proposed Transaction and Required Work Determination Page 1 of 4 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE RESOLUTION NO. 20- 02 PROPOSED PURCHASE OF TRANSMISSION ASSETS ADOPTION OF O&D COMMITTEE REPORT ON PROPOSED TRANSACTION FINDING OF REQUIRED WORK INTRODUCTION This Resolution 20-02 addresses the analyses of the O&D Committee (Bradley O&D) to the Bradley Lake Project Management Committee (BPMC) concluding that the purchase of electric transmission facilities and properties which are currently used by Homer Electric Association, Inc. (HEA) to provide electric service to Purchasers1 of the Bradley Lake Hydroelectric Project (Project) is consistent with national standards for the industry and is necessary to keep the Project in good and efficient operating condition. BACKGROUND On May 22, 2020 Alaska Energy Authority (AEA) and HEA entered into a Letter of Intent containing the terms and conditions under which AEA would purchase and HEA would sell certain electric transmission facilities and properties that are currently used by HEA to provide electric service to Purchasers of the Project (Proposed Transaction). The Members of the BPMC supported the Proposed Transaction. The Department of Law for the State of Alaska (DOL) reviewed a draft of the Letter of Intent and issued a Memorandum Opinion dated May 20, 2020 finding that the definition of “Required Work” set forth in the Agreement for the Sale and Purchase of Electric Power by and among The Alaska Power Authority and The Chugach Electric Association, Inc.. The Golden Valley Electric Association, Inc., The Municipality of Anchorage d/b/a Municipal Light & Power, The City of Seward d/b/a Seward Electric System, and The Alaska Electric Generation & Transmission Cooperative, Inc. (Power Sales Agreement) could include the Proposed Transaction. The DOL stated that additional analysis should be done with respect to how the Proposed Transaction is consistent with sound economics and national standards. The AEA determined that the Bradley O&D was capable of 1 The Purchasers receiving this service are Chugach Electric Association, Inc. (CEA), City of Seward d/b/a/ Seward Electric System (Seward), Golden Valley Electric Association, Inc. (GVEA), Matanuska Electric Association, Inc. (MEA), and The Municipality of Anchorage d/b/a Municipal Light & Power (ML&P). BPMC Resolution No. 20-02; Adoption of O&D Report on Proposed Transaction and Required Work Determination Page 2 of 4 performing the analysis cited by the DOL. On June 12, 2020 Bradley O&D commenced with said review and analysis to determine whether the Proposed Transaction is consistent with sound economics and national standards. The Bradley O&D issued its report on July 17, 2020. The BPMC has reviewed the Bradley O&D Report. This Resolution No. 20-02 adopts the Report of Bradley O&D and finds that the Proposed Transaction meets the definition of Required Work set forth in the Power Sales Agreement. BPMC RESOLUTION NO. 20-02 WHEREAS, On May 22, 2020 AEA and HEA entered into a Letter of Intent containing the terms and conditions under which AEA would purchase and HEA would sell certain electric transmission facilities and properties that are currently used by HEA to provide electric service to Purchasers of the Project; WHEREAS, Chugach, GVEA,MEA, ML&P, and Seward fully support the Proposed Transaction, subject to any required final approval of the governing bodies of the individual Members; WHEREAS, The DOL issued a Memorandum Opinion dated May 20, 2020 finding that the definition of “Required Work” set forth in the Power Sales Agreement could include the Proposed Transaction; WHEREAS, The DOL Memorandum Opinion stated that additional analysis should be done with respect to how the Proposed Transaction is consistent with sound economics and national standards; WHEREAS, AEA deemed it appropriate for the Bradley O&D to perform the analysis to satisfy the requirement set forth in the DOL Memorandum Opinion; WHEREAS, On June 12, 2020 the Bradley O&D commenced its review and analysis of the Proposed Transaction to ascertain whether the Proposed Transaction is necessary to keep the Project in good and efficient operating condition consistent with sound economics and national standards; WHEREAS, the Bradley O&D reviewed National and Railbelt reliability standards, the Power Sales Agreement, the Proposed Transaction, the 2017 AEA Railbelt Transmission Plan and Economic Analysis, the Power Revenue Bond Resolution, as well as real-time data from SCADA and financial information for each utility receiving power from the Project to evaluate whether the Proposed Transaction was consistent with national industry standards; BPMC Resolution No. 20-02; Adoption of O&D Report on Proposed Transaction and Required Work Determination Page 3 of 4 WHEREAS, the Bradley O&M analyzed various real-time data including hourly power data at Soldotna and Quartz Creek Substations, Project generation data, and individual utility generation and fuel-related data to determine the economic impact of the line being out of service on the respective utilities receiving power from the Project to evaluate whether the Proposed Transaction was consistent with sound economics ; WHEREAS, On July 17, 2020 the Bradley O&D finalized and issued its report on the Proposed Transaction which is attached to hereto and made part of this Resolution No. 20-02 (Bradley O&D Report); WHEREAS, the Bradley O&D Report determined the economics for the Proposed Transaction to be sound, citing in support of its review of the cost to the utilities receiving power from the Project when the transmission facilities are out of service, the loss of energy sales for the Project economics when the transmission facilities are out of service, the expected benefits of a significant increase in access to utility resources for repair, maintenance and upgrades to the lines serving the Project, the increased reliability of the Project, and the alignment of costs and benefits of the utilities requiring the transmission services; WHEREAS, the Bradley O&D Report also found that the utilities being served by the Project will operationally benefit from the alignment of cost responsibility (i.e., cost causer is cost payer) to all of the Project Participants; WHEREAS, the Bradley O&D Report also found that the change of ownership and resulting access to significantly increased utility resources, as well as the repairs and upgrades contemplated by the Proposed Transaction, the increased reliability of the Project, and resulting increase in energy sales was necessary to keep the Project in good and efficient operating condition; WHEREAS, the Bradley O&D determined that that the Proposed Transaction is fully consistent with the meaning of “Prudent Utility Practice” as defined by the Power Revenue Bond Resolution and thus the Proposed Transaction meets the national standards for the electric utility industry; WHEREAS, the Bradley O&D concluded that the purchase of the HEA transmission assets by AEA is “Required Work” as that term is defined in the Power Purchase Agreement. WHEREAS, the BPMC is aware and understands that AEA will have the findings and conclusions of the Bradley O&D reviewed and certified by an independent consulting engineer; BPMC Resolution No. 20-02; Adoption of O&D Report on Proposed Transaction and Required Work Determination Page 4 of 4 WHEREAS, The BPMC has reviewed the Bradley O&D Report and finds the analyses of the Bradley O&D to be appropriate for purposes of determining whether the purchase of the HEA transmission assets by AEA is “Required Work” as that term is defined in the Power Purchase Agreement; and, WHEREAS, The BPMC also finds the conclusions of the Bradley O&D Report are supported by the data and analyses performed. THEREFORE, BE IT RESOLVED THAT, the BPMC adopts the Bradley O&D Report and the findings and conclusions therein; BE IT ALSO RESOLVED THAT, the Proposed Transaction is consistent with sound economics; BE IT ALSO RESOLVED THAT, the Proposed Transaction is necessary to keep the Project in good and efficient operating condition and is consistent with national industry standards applicable to the electric utility industry; and, BE IT ALSO RESOLVED THAT, the BPMC continues to fully support the Proposed Transaction, subject to any required final approval of the governing bodies of the individual Members and considers the Proposed Transaction as the foundation for future upgrades to the Railbelt Transmission System. DATED at Anchorage Alaska, this 24th day of July, 2020. ______________________________________ Chair, Anthony M. Izzo Attest: ______________________________ Secretary, Curtis Thayer BPMC AGENDA ITEM 7D Motion Regarding Review of Excess Payment Obligation BACKGROUND: AEA has prepared a White Paper concerning the Excess Payment obligation set forth in the Power Sales Agreement to be effective once the Bradley L ake Bonds are repaid. AEA has calculated the Excess Payment obligation to be approximately $12.5 million. The actual Excess Payment Amount will be reduced by any debt service included in Annual Project Costs that is associated with the bonds or other debt issued to fund Required Project Work. Due to the complexity and importance of the Excess Payment obligation calculation, AEA would like to engage the services of an independent financial advisor with experience in hydroelectric project financings. An additional legal opinion regarding assumptions used in the calculation may also be warranted. The cost of the report and/or opinion would be considered an Annual Project Cost to be funded by the Project. MOTION: ____________ hereby moves the BPMC to direct AEA to obtain a determination of the amount due under the Excess Payment provisions of the Power Sales by using a third- party financial advisor with experience in hydroelectric project financings and, if necessary, obtain a legal opinion . AEA may use a financial advisor and/or counsel currently under an existing AEA contract or similar arrangement. Seconded by _______________________ {01024957}Page 1 Alaska Energy Authority Bradley Lake Hydroelectric Project Retirement of Bonds and Excess Payments White Paper-June 2020 Purpose The purpose of this White Paper is to provide information regarding: 1) the release of amounts held in the Capital Reserve in connection with Original Bonds and Refunding Bonds, and 2) the “Excess Payment” obligations of the utilities under the Power Sales Agreement (as defined herein). For purposes of this White Paper, certain definitions follow: 1. “AEA” means Alaska Energy Authority, formerly known as the Alaska Power Authority. 2. “Bonds” means all bonds issued under, and pursuant to, the Bond Resolution. 3. “Bond Resolution” means AEA’s Bradley Lake Power Revenue Bond Resolution, dated September 7, 1989, as amended and supplemented from time to time. 4. “Original Bonds” means, together, those power revenue bonds issued by AEA to finance a portion of the cost of the Project, consisting of: a. $105,001,142 principal amount of Power Revenue Bonds, First Series (“First Series”); and b. $60,259,015.10 principal amount of Power Revenue Bonds, Second Series (“Second Series”). 5. “PSA” means that Power Sales Agreement, dated December 8, 1987. 6. “Refunding Bonds” means, collectively, those power revenue bonds issued by AEA to refund portions of the outstanding Original Bonds, consisting of: a. $59,485,000 principal amount of Power Revenue Refunding Bonds, Third Series (“Third Series”); b. $47,710,000 principal amount of Power Revenue Refunding Bonds, Fourth Series (“Fourth Series”); c. $30,640,000 principal amount of Power Revenue Refunding Bonds, Fifth Series (“Fifth Series”); and d. $28,800,000 principal amount of Power Revenue Refunding Bonds, SixthSeries (“Sixth Series”). {01024957}Page 2 Background Excess Payment Obligation The State funded approximately half of the construction cost of the Bradley Lake Hydroelectric Project (“Project”) in the form of equity. In order to allow the State to recover some of its equity contribution to the Project, the PSA obligates the Project utilities to make annual Excess Payments after the Original Bonds and Refunding Bonds are retired.1 The Excess Payments are addressed in Section 29 of the PSA. The annual Excess Payment Amount equals the average debt service over the life of the Original Project bonds that financed the Project, minus debt service included in Annual Project Costs as defined in the PSA for any Required Project Work. Excess Payments are also capped at $0.04 per kilowatt hour. The payment is not a take‐or- pay obligation so each utility only pays for their pro-rata share as defined in the PSA for power actually delivered. Questions and Answers Question: When may amounts held in the Capital Reserve Subaccounts (securing payment of the Original Bonds and Refunding Bonds) be released if such Bonds are not retired prior to maturity (7/1/2021)? Answer: Following the principal and interest payment due 7/1/2020, we expect $1,325,512 will be released from the Capital Reserve Subaccounts related to the outstanding Original Bonds and Refunding Bonds. AEA will initiate this release after payment of the 7/1/2020 debt service. The remaining balance held in the Capital Reserve Subaccounts related to the outstanding Original Bonds and Refunding Bonds ($11,453,263) will be released after 7/1/2021 when such Bonds are retired (paid in full). Question: What is the amount of the Excess Payment obligation? Answer: AEA has calculated the annual Excess Payment obligation and believes it to be approximately $12.5 million. Due to the complexity and importance of the Excess Payment obligation calculation AEA recommends the Project utilities direct AEA to obtain a third-party determination of the amount due by a financial advisor with experience in hydroelectric project financings. If agreed to by the Project utilities, AEA may use a financial advisor currently under an existing AEA contract. The cost of such report would be considered an Annual Project Cost to be funded by the Project. An additional legal opinion regarding assumptions used in the calculation may also be warranted. 1 Testimony of Robert LeResche, then Executive Director of the Authority, at House Judiciary Committee (1/27/1988), transcript at pg. 10. Note, however, that the PSA describes the Excess Payments as payments by the utilities in recognition of efforts to obtain an intertie. Section 29, PSA. {01024957}Page 3 The Excess Payment Amount will be reduced by any debt service included in Annual Project Costs that is associated with the bonds or other debt issued to fund Required Project Work. Question: When does the Excess Payment obligation begin? Answer: After the retirement of all Original Bonds and Refunding Bonds issued to finance (or refinance) “recoverable construction costs” for constructing the Bradley Lake Project. The PSA requires the Excess Payment Amount to be included in Annual Project Costs (defined in the PSA). Unless retired earlier, on July 1, 2021 all Original Bonds and Refunding Bonds will be paid off and the Excess Payment Amount will be required to be included in Annual Project Costs (FY22 budget year), and charged to utilities for their purchases of Project power. Question: How will the Excess Payment Amount be paid? Answer: The Excess Payment Amount is required to be included in Annual Project Costs and will be included in the annual Project operating budget. The payment will be made to the Authority by the participating utilities. The Authority will then transfer the funds to the State of Alaska Railbelt Energy Fund for appropriation by the Legislature. The Excess Payment Amount (approximately $12.5 million) would be included in the Annual Bradley budget as an expense, and would be funded by the monthly payments made by the utilities. At the end of each fiscal year a payment reconciliation will be performed to ensure sufficient amounts have been paid by the Project Utilities but not in excess of the Excess Payment Amount cap (4 cents per kilowatt hour of delivered power). In general, we do not anticipate the cap to be a limitation as in most years the delivered power has been above the amount required to reach $12.5 million as the Excess Payment Amount. The Authority compares total actual Annual Project Costs (which would include the Excess Payment Amount) to revenues collected at the end of the fiscal year and refunds any excess to the participating utilities or bills for any deficiency. It is important to note that the total annual Excess Payment Amount (and the amount available to appropriate by the Legislature) will not be known until the end of the fiscal year when total delivered power is known and the Excess Payment cap can be calculated. Question: When will the Excess Payment Amount be available for appropriation? Answer: The appropriation of the Excess Payment Amount remitted to the Railbelt Energy Fund could be structured in several different ways. The cleanest approach would be to collect the amount allowed under the PSA from the utilities as an Annual Project Cost and remit the amount due to the Railbelt Energy Fund for the fiscal year (on June 30, 2022 or soon thereafter for FY22). Legislation would then be included in the FY24 budget (being drafted in FY23) to appropriate the FY22 Excess Payment Amount. Under this methodology there would be a two- year lag between when the Excess Payment Amount is paid to AEA by the Utilities and the State budget year the funds could be available to be appropriated and spent. Earlier timing might be possible but there would be limitations on cash flow availability as AEA could only remit payments to the State based on delivered power until the cap is exceeded (312.5 megawatts) and the maximum payment is earned by the State. Page 1 of 1 BPMC Update West Fork Upper Battle Creek Update July 24, 2020 Events:  Contractor has completed piping between diversion dam and outfall to Bradley Lake.  Flow meters installed.  Final electrical & control work in process. Lines to be energized Saturday July 18th.  On-going work electrical, controls, air vent valves along pipe, surface course.  Substantial Completion inspection & testing July 22, 2020. Schedule: Contract substantial completion date July 22, 2020 and final completion date August 31, 2020 has not changed. Budget: Construction contract bid was $36.476M. Current Contract Amount $37.458M. Bradley Lake Operator Report Page 1 Bradley Lake Operators Report O&D and BPMC July 17, 2020 Unit Statistics: Generation Unit 1 (MWhrs) Unit 2 (MWhrs) Total (MWhrs) June July * 18,037 7,693 14,9968 5,211 33,005 12,904 Hydraulics Avg. Lake Level (ft.) Usage (ac ft.) Fish water (CFS) June July * 116.2 1124 37,604 19,099 124.9 123.1 Lake Level 1113.7 – *as of July 17, 2020 Spill is at 1180’ Lake Minimum at 1080’ Capital Projects: 1) Lake Level – The lake level is slightly below average for this time of year. 2) Mechanical Divider issue – On hold. 3) Generator 2 Poles Repair – On Hold. 4) Battle Creek – extensive effort is being applied form the plant to facilitate the completion of Battle Creek. We are working hard to integrate and test the new plant controls. 5) End of year Budget– This year’s budget will see impacts from COVID-19, The fire system improvements, replacement of pole pieces on Generator 2, replacement of the dividers on Unit 1 and 2, procurement of the dump truck, IRIS air gap monitoring system all were not delayed from 2020 due mostly to COVID issues. Most of these delays are because of the prohibition on travel (both in state and from out of state) thus eliminating the ability of Bradley to have certain activities and inspections completed. Most of the end of year invoices and billings were completed in June. Operations, Maintenance, and Inspections: Bradley Lake Operator Report Page 2 1) June Unit availability –Unit 1 100%, Unit 2 95.9%. Capacity factor for March for Unit 1 was 39.7% and for Unit 2 33% . 2) July Unit availability –Unit 1 100%, Unit 2 99.65%. Capacity factor for April for Unit 1 was 39.1% and for Unit 2 26.52%. Lower numbers reflected a northern tie outage. 3) Job Focus - We are focusing on getting Battle Creek operational. 4) Bears – Bears continue to be a nuisance for both the Plant and Orion. Lake level as of 07/17/20 Bradley O&D Report to the BPMC Friday July 24, 2020 1. Committee Members: a. Sarauer & Roberts (GVEA) - Chair b. Thornton & Vogel (CEA) - Vice Chair c. Patrick & Day (HEA) d. Warner & Langford (AMLP) e. Crowell & McKimson (MEA) f. Carey & Warren (AEA) g. Gillis (Seward) 2. SSQ line Proposed Transaction Report a. Report evaluating the economic and reliability benefit of the proposed transaction completed. Report reviewed, edited and approved by the O&D Committee. 3. Bradley Lake Report: a. Submitted by Bob Day and reviewed by the O&D Committee. 4. Water and Lake Level Report: a. Submitted by Russ Thornton and reviewed by the O&D Committee 5. Battle Creek Update: a. Submitted by Bryan Carey and reviewed by the O&D Committee 6. COVID-19 Update a. O&D Meetings have gone back to Video Conference only due to the rise in COVID cases in Alaska. Bradley Lake Budget to Actual Expense Report 07/01/2019 to 04/30/2020 Page 1 of 9 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Schedule A-1 Expenses for the period 07/01/19 to 04/30/20 FY18 FY19 FY20 FY20 ACTUALS ACTUALS BUDGET ACTUALS Replace/Automate Fish Water Valve Actuators 361,430 364 - 2,931 Equipment storage shed (unheated bus barn) 67,539 - - 1 ton Flatbed with Plow 57,016 - - Battle Creek Bridge Repair Refurbishment (2) - - 220,000 Mobil Crane 40 to 50 tons (used) 88,875 - - Replace Michigan Loader 263,306 - - Upgrade Crews Quarters and Residents Kitchen 1,850 - - Replace 1988 Suburban Ambulance 59,430 5,350 - 1/2 ton Pick up truck 34,693 - - Replace High Bay Lighting in Power Plant 19,920 - - Turbine Nozzle Repair - - - Tire Machine - 15,246 - UPS Replacement 75,000 65,696 IRIS Air Gap Monitoring System (computer) 45,000 41,720 Replace Dump Truck and Sander 170,000 Rough Terrain Fork Lift (with Plow) 130,000 131,593 Pick up Truck 45,000 41,484 Total Non R&C Capital Purchases 954,059 20,960 685,000 283,425 CAPITAL PURCHASES NOT FUNDED BY R&C FUND Page 2 of 9 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2019 THROUGH 04/30/2020 FY 20 FY 19 FY20 Approved Budget BUDGET % 07/01/2019 - 04/30/2020 HEA Actual CEA Actual AEA Actual Total Actual (Over) Under Budget to Date FY19 Approved Budget FY19 Actual Summary by expense type Default - - - - - - - - - Labor & Benefits 1,219,936 1,016,615 785,011 35,602 - 820,613 196,002 1,572,497 1,307,514 Travel 45,950 38,290 7,896 531 - 8,427 29,863 33,950 28,380 Training 49,300 41,083 9,827 - - 9,827 31,257 49,300 20,957 Contractual 869,842 724,868 317,123 11,454 198,749 527,326 197,542 1,033,216 633,895 Supplies & Materials 346,345 288,621 116,385 255 - 116,640 171,981 204,345 156,340 Other Costs 67,818 56,516 29,747 24,313 758 54,818 1,698 69,818 31,293 Equipment, Furniture and Machinery 176,000 146,667 56,110 - - 56,110 90,557 7,000 6,879 Maintenance Projects - - 313 - - 313 (313) - 44,926 Administrative Costs 1,192,464 993,720 17,310 - 991,637 1,008,947 (15,227) 1,233,537 1,210,676 Indirect Costs 1,383,388 1,152,823 1,019,674 - - 1,019,674 133,149 583,803 579,115 5,351,043 4,459,203 2,359,394 72,155 1,191,144 3,622,694 836,509 4,787,466 4,019,975 FERC 535 - Operation Supervision & Engineering Operations Sup/Eng Bradley Lake Operating Labor & Benefits 107,453 89,544 71,908 - - 71,908 17,636 189,074 182,059 Travel 10,450 8,708 246 - - 246 8,462 10,450 13,462 Training 9,300 7,750 991 - - 991 6,759 9,300 4,305 Contractual 1,000 833 41 - - 41 792 1,000 257 Supplies & Materials 4,000 3,333 2,719 - - 2,719 614 4,000 2,688 Indirect Costs 155,698 129,748 103,323 - - 103,323 26,425 77,849 74,535 Bradley Lake Operating Total 287,901 239,916 179,229 - - 179,229 60,687 291,673 277,306 FERC 535 - Operation Supervision & Engineering Total 287,901 239,916 179,229 - - 179,229 60,687 291,673 277,306 FERC 537 - Hydraulic Expenses Hydraulic Expenses Bradley Lake Operating Labor & Benefits 84,081 70,068 55,738 - - 55,738 14,330 88,714 71,766 Travel 10,000 8,333 - - - - 8,333 - - Contractual 22,000 18,333 - - - - 18,333 2,000 11,524 Supplies & Materials 19,000 15,833 4,820 - - 4,820 11,013 2,000 2,636 Equipment, Furniture and Machinery 81,000 67,500 1,409 - - 1,409 66,091 - - Indirect Costs 107,519 89,599 80,894 - - 80,894 8,705 41,515 42,543 Bradley Lake Operating Total 323,600 269,666 142,862 - - 142,862 126,804 134,229 128,470 FERC 537 - Hydraulic Expenses Total 323,600 269,666 142,862 - - 142,862 126,804 134,229 128,470 FERC 538 - Electric Expenses Electric Expenses Bradley Lake Operating Labor & Benefits 208,745 173,954 173,724 - - 173,724 230 224,811 209,644 Travel 7,000 5,833 3,119 - - 3,119 2,714 7,000 4,890 Training 25,000 20,833 8,835 - - 8,835 11,998 25,000 12,406 Contractual 7,000 5,833 247 - - 247 5,586 2,000 - Supplies & Materials 50,732 42,277 1,845 - - 1,845 40,432 9,732 4,503 Equipment, Furniture and Machinery 63,000 52,500 49,614 - - 49,614 2,886 - - Indirect Costs 242,067 201,723 211,087 - - 211,087 (9,364) 102,222 110,544 Bradley Lake Operating Total 603,544 502,953 448,473 - - 448,473 54,480 370,765 341,989 FERC 538 - Electric Expenses Total 603,544 502,953 448,473 - - 448,473 54,480 370,765 341,989 FERC 539 - Misc. Hydraulic Power Generation Expenses Misc Hydro Power Exp Bradley Lake Operating Labor & Benefits 104,936 87,447 55,423 - - 55,423 32,024 168,044 116,910 Training 15,000 12,500 - - - - 12,500 15,000 4,245 Contractual 287,525 239,604 154,490 - - 154,490 85,114 287,525 147,555 Supplies & Materials 17,900 14,917 21,609 - - 21,609 (6,692) 17,900 31,565 Indirect Costs 107,519 89,599 80,551 - - 80,551 9,048 41,515 42,396 Bradley Lake Operating Total 532,880 444,067 312,073 - - 312,073 131,994 529,984 342,672 BRADLEY CIRCUITS/RADIO TO BERNICE LK Other Costs 35,695 29,746 26,772 - - 26,772 2,974 35,695 35,696 BRADLEY CIRCUITS/RADIO TO BERNICE LK Total 35,695 29,746 26,772 - - 26,772 2,974 35,695 35,696 BRADLEY CIRCUITS BERNICE LK TO ANCH Other Costs 29,773 24,811 - 21,873 - 21,873 2,938 29,773 29,524 BRADLEY CIRCUITS BERNICE LK TO ANCH Total 29,773 24,811 - 21,873 - 21,873 2,938 29,773 29,524 FERC 539 - Misc. Hydraulic Power Generation Expenses Total 598,348 498,624 338,844 21,873 - 360,717 137,907 595,452 407,892 FERC 540 - Rents FERC Land Use Fee Bradley Lake Operating Other Costs - - - - - - - - (35,289) Bradley Lake Operating Total - - - - - - - - (35,289) FERC 540 - Rents Total - - - - - - - - (35,289) H:\Accounting\AEA FY20 FS Shared Files\Bradley Lake\Monthly Reports\10-May.xlsx 3 of 9 7/17/2020 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2019 THROUGH 04/30/2020 FY 20 FY 19 FY20 Approved Budget BUDGET % 07/01/2019 - 04/30/2020 HEA Actual CEA Actual AEA Actual Total Actual (Over) Under Budget to Date FY19 Approved Budget FY19 Actual FERC 541 - Maintenance Supervision & Engineering Maint Supervision/Eng Bradley Lake Operating Labor & Benefits 114,456 95,380 68,049 - - 68,049 27,331 195,817 181,894 Indirect Costs 155,698 129,748 97,329 - - 97,329 32,419 77,849 74,373 Bradley Lake Operating Total 270,154 225,128 165,378 - - 165,378 59,750 273,666 256,267 FERC 541 - Maintenance Supervision & Engineering Total 270,154 225,128 165,378 - - 165,378 59,750 273,666 256,267 FERC 542 - Maintenance of Structures Maintenance of Structures Bradley Lake Operating Labor & Benefits 76,499 63,749 51,063 - - 51,063 12,686 85,438 67,934 Contractual 91,000 75,833 3,237 - - 3,237 72,596 10,000 - Supplies & Materials 88,713 73,928 29,834 - - 29,834 44,094 53,713 46,903 Equipment, Furniture and Machinery 32,000 26,667 4,983 - - 4,983 21,684 7,000 6,879 Indirect Costs 97,823 81,519 74,101 - - 74,101 7,418 37,066 37,809 Bradley Lake Operating Total 386,035 321,696 163,219 - - 163,219 158,477 193,217 159,525 BRADLEY UPGRADE CREWS QTRS/RESIDENCE KITCHEN Contractual - - - - - - - 165,000 - BRADLEY UPGRADE CREWS QTRS/RESIDENCE KITCHEN Total - - - - - - - 165,000 - BRADLEY CIRCUITS/RADIO TO BERNICE LK Other Costs - - 2,975 - - 2,975 (2,975) - - BRADLEY CIRCUITS/RADIO TO BERNICE LK Total - - 2,975 - - 2,975 (2,975) - - BRADLEY CIRCUITS BERNICE LK TO ANCH Other Costs - - - 2,440 - 2,440 (2,440) - - BRADLEY CIRCUITS BERNICE LK TO ANCH Total - - - 2,440 - 2,440 (2,440) - - FERC 542 - Maintenance of Structures Total 386,035 321,696 166,194 2,440 - 168,634 153,062 358,217 159,525 FERC 543 - Maintenance of Reservoirs, Dams & Waterways Maint Res, Dams, WWays Bradley Lake Operating Labor & Benefits 45,080 37,567 1,231 - - 1,231 36,336 45,552 4,722 Contractual 6,500 5,417 - - - - 5,417 6,500 7,600 Indirect Costs 56,322 46,935 1,532 - - 1,532 45,403 19,932 87 Bradley Lake Operating Total 107,902 89,919 2,762 - - 2,762 87,157 71,984 12,410 BRADLEY NUKA REPAIR Contractual - - - - - - - 15,000 - BRADLEY NUKA REPAIR Total - - - - - - - 15,000 - BRADLEY POWER TUNNEL MAINT (Dam) Contractual 15,000 12,500 - - - - 12,500 15,000 - BRADLEY POWER TUNNEL MAINT (Dam) Total 15,000 12,500 - - - - 12,500 15,000 - FERC 543 - Maintenance of Reservoirs, Dams & Waterways Total 122,902 102,419 2,762 - - 2,762 99,657 101,984 12,410 FERC 544 - Maintenance of Electric Plant Maintenance of Elec Plant Bradley Lake Operating Labor & Benefits 273,620 228,017 205,679 - - 205,679 22,338 342,265 285,367 Travel 4,500 3,750 - - - - 3,750 4,500 216 Contractual 49,000 40,833 14,295 - - 14,295 26,538 70,000 69,475 Supplies & Materials 70,000 58,333 26,495 - - 26,495 31,838 20,000 16,571 Maintenance Projects - - - - - - - - 44,926 Indirect Costs 368,424 307,020 296,194 - - 296,194 10,826 148,789 156,963 Bradley Lake Operating Total 765,544 637,953 542,664 - - 542,664 95,289 585,554 573,517 BRADLEY REPLACE LIGHTING IN POWER PLANT Supplies & Materials - - - - - - - 30,000 - BRADLEY REPLACE LIGHTING IN POWER PLANT Total - - - - - - - 30,000 - FERC 544 - Maintenance of Electric Plant Total 765,544 637,953 542,664 - - 542,664 95,289 615,554 573,517 FERC 545 - Maintenance of Misc. Hydraulic Plant Maint of Misc Hydr Plant Bradley Lake Operating Labor & Benefits 69,395 57,829 51,773 - - 51,773 6,056 85,438 70,964 Contractual 3,900 3,250 6,763 - - 6,763 (3,513) 3,900 - Supplies & Materials 63,000 52,500 25,858 - - 25,858 26,642 35,000 33,168 Maintenance Projects - - 313 - - 313 (313) - - Indirect Costs 92,318 76,932 74,663 - - 74,663 2,269 37,066 39,864 Bradley Lake Operating Total 228,613 190,511 159,370 - - 159,370 31,141 161,404 143,995 FERC 545 - Maintenance of Misc. Hydraulic Plant Total 228,613 190,511 159,370 - - 159,370 31,141 161,404 143,995 FERC 556 - System Control & Load Dispatching System Cntl & Load Disp Bradley Lake Operating Labor & Benefits 21,140 17,617 28,674 - - 28,674 (11,057) 21,506 20,920 Contractual 53,000 44,167 56,914 - - 56,914 (12,747) 53,000 44,800 Supplies & Materials 6,000 5,000 3,204 - - 3,204 1,796 6,000 613 Bradley Lake Operating Total 80,140 66,784 88,793 - - 88,793 (22,009) 80,506 66,333 BRADLEY EMERSON ANTIVIRUS UPGRADE Contractual - - - - - - - 40,000 41,740 BRADLEY EMERSON ANTIVIRUS UPGRADE Total - - - - - - - 40,000 41,740 H:\Accounting\AEA FY20 FS Shared Files\Bradley Lake\Monthly Reports\10-May.xlsx 4 of 9 7/17/2020 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2019 THROUGH 04/30/2020 FY 20 FY 19 FY20 Approved Budget BUDGET % 07/01/2019 - 04/30/2020 HEA Actual CEA Actual AEA Actual Total Actual (Over) Under Budget to Date FY19 Approved Budget FY19 Actual Snow Measurement Bradley Lake Operating Contractual 10,000 8,333 - - 10,000 10,000 (1,667) 12,000 10,000 Bradley Lake Operating Total 10,000 8,333 - - 10,000 10,000 (1,667) 12,000 10,000 Seismic Service Bradley Lake Operating Contractual 62,000 51,667 - - 46,312 46,312 5,355 62,000 61,569 Bradley Lake Operating Total 62,000 51,667 - - 46,312 46,312 5,355 62,000 61,569 Streamguaging Serv Bradley Lake Operating Contractual 209,917 174,931 - - 142,438 142,438 32,493 206,291 186,291 Bradley Lake Operating Total 209,917 174,931 - - 142,438 142,438 32,493 206,291 186,291 Permits Bradley Lake Operating Other Costs 350 292 - - 758 758 (466) 350 250 Bradley Lake Operating Total 350 292 - - 758 758 (466) 350 250 FERC 556 - System Control & Load Dispatching Total 362,407 302,007 88,793 - 199,507 288,300 13,707 401,147 366,183 FERC 562 - Station Expenses Station Expenses Bradley Lake Operating Labor & Benefits 87,072 72,560 19,241 35,602 - 54,843 17,717 94,718 83,224 Travel 4,000 3,333 - 531 - 531 2,802 2,000 1,632 Contractual 2,000 1,667 32,791 11,454 - 44,244 (42,577) 32,000 35,207 Supplies & Materials 22,000 18,333 - 255 - 255 18,078 21,000 17,692 Other Costs 2,000 1,667 - - - - 1,667 4,000 1,112 Bradley Lake Operating Total 117,072 97,560 52,032 47,842 - 99,874 (2,314) 153,718 138,869 FERC 562 - Station Expenses Total 117,072 97,560 52,032 47,842 - 99,874 (2,314) 153,718 138,869 #N/A Weather Monitoring Power Sup Bradley Lake Operating Bradley Lake Operating Total - - - - - - - - - #N/A - - - - - - - - - FERC 571 - Maintenance of Overhead Lines Maint of OH Lines Bradley Lake Operating Labor & Benefits 27,459 22,883 2,507 - - 2,507 20,376 31,120 12,110 Travel 10,000 8,333 4,530 - - 4,530 3,803 10,000 8,180 Contractual 50,000 41,667 48,343 - - 48,343 (6,676) 50,000 17,875 Supplies & Materials 5,000 4,167 - - - - 4,167 5,000 - Equipment, Furniture and Machinery - - 103 - - 103 (103) - - Bradley Lake Operating Total 92,459 77,050 55,484 - - 55,484 21,566 96,120 38,165 FERC 571 - Maintenance of Overhead Lines Total 92,459 77,050 55,484 - - 55,484 21,566 96,120 38,165 FERC 920 & 930 - Administrative Expense AEA Bradley Fixed Admin Fees Bradley Lake Operating Administrative Costs 200,000 166,667 - - 166,667 166,667 0 200,000 200,000 Bradley Lake Operating Total 200,000 166,667 - - 166,667 166,667 0 200,000 200,000 Operating Committee Exp-Audit Bradley Lake Operating Administrative Costs 19,900 16,583 - - 19,900 19,900 (3,317) 16,500 19,900 Bradley Lake Operating Total 19,900 16,583 - - 19,900 19,900 (3,317) 16,500 19,900 Operating Committee Exp-Legal Bradley Lake Operating Administrative Costs 30,000 25,000 - - 175,227 175,227 (150,227) 25,000 140,453 Bradley Lake Operating Total 30,000 25,000 - - 175,227 175,227 (150,227) 25,000 140,453 Operat Committee Exp-Arbitrage Bradley Lake Operating Administrative Costs 3,000 2,500 - - - - 2,500 2,935 2,785 Bradley Lake Operating Total 3,000 2,500 - - - - 2,500 2,935 2,785 Trust & Account Fees Bradley Lake Operating Administrative Costs 11,918 9,932 - - 11,918 11,918 (1,986) 11,918 11,918 Bradley Lake Operating Total 11,918 9,932 - - 11,918 11,918 (1,986) 11,918 11,918 Misc Admin Bradley Lake Operating Administrative Costs 11,646 9,705 - - 12,000 12,000 (2,295) 10,350 11,646 Bradley Lake Operating Total 11,646 9,705 - - 12,000 12,000 (2,295) 10,350 11,646 FERC 920 & 930 - Administrative Expense Total 276,464 230,387 - - 385,712 385,712 (155,325) 266,703 386,702 FERC 924 & 925 - Insurance Premiums Insurance Premiums Bradley Lake Operating Administrative Costs 631,000 525,833 17,310 - 529,760 547,070 (21,237) 656,834 617,640 Bradley Lake Operating Total 631,000 525,833 17,310 - 529,760 547,070 (21,237) 656,834 617,640 FERC 924 & 925 - Insurance Premiums Total 631,000 525,833 17,310 - 529,760 547,070 (21,237) 656,834 617,640 H:\Accounting\AEA FY20 FS Shared Files\Bradley Lake\Monthly Reports\10-May.xlsx 5 of 9 7/17/2020 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2019 THROUGH 04/30/2020 FY 20 FY 19 FY20 Approved Budget BUDGET % 07/01/2019 - 04/30/2020 HEA Actual CEA Actual AEA Actual Total Actual (Over) Under Budget to Date FY19 Approved Budget FY19 Actual FERC 928 - Regulatory Commission Expenses FERC Admin Fees Bradley Lake Operating Administrative Costs 185,000 154,167 - - - - 154,167 185,000 101,775 Bradley Lake Operating Total 185,000 154,167 - - - - 154,167 185,000 101,775 FERC Related Prof Services BRADLEY CONTRACTUAL ENGINEER-FERC LICENSE ISSUES Administrative Costs 100,000 83,333 - - 76,165 76,165 7,168 125,000 104,560 BRADLEY CONTRACTUAL ENGINEER-FERC LICENSE ISSUES Total 100,000 83,333 - - 76,165 76,165 7,168 125,000 104,560 FERC 928 - Regulatory Commission Expenses Total 285,000 237,500 - - 76,165 76,165 161,335 310,000 206,335 Total Bradley Lake Budget 5,351,043 4,459,203 2,359,394 72,155 1,191,144 3,622,694 836,509 4,787,466 4,019,975 H:\Accounting\AEA FY20 FS Shared Files\Bradley Lake\Monthly Reports\10-May.xlsx 6 of 9 7/17/2020 BRADLEY LAKE R&C FUND DISBURSEMENTS AND REPAYMENTS SCHEDULE D Expenses for the Period 07/1/19 through 04/30/20 Actual Actual Actual Actual Budget @06/30/19 TO REPAY @ 02/29/20 TO REPAY FY20 Description Expense @6/30/19 Expense @6/30/20 R&C FUND PROJECTS Governor 0.00 4,052,070.14 0.00 4,052,070.14 0.00 Replace RFLS 0.00 251,092.69 0.00 251,092.69 0.00 Replace Runners 0.00 1,946,732.79 0.00 1,946,732.79 0.00 Replace cable from dam to power house 0.00 2,321,922.94 0.00 2,321,922.94 0.00 Replace power system stabilizer 0.00 619,205.10 0.00 619,205.10 0.00 Replace two RTUs 0.00 86,905.27 0.00 86,905.27 0.00 Culvert Repairs 0.00 675,966.79 0.00 675,966.79 0.00 Tower Repair for Jack Frost Heaves 0.00 887,596.62 0.00 887,596.62 0.00 Replace Plant and SCADA Controls 0.00 1,344,683.05 0.00 1,344,683.05 0.00 Vibration Monitoring System 0.00 490.00 0.00 490.00 0.00 Fire Alarm System Replacement 0.00 0.00 21,560.94 21,560.94 150,000.00 Battle Creek Diversion 0.00 1,170,000.00 0.00 1,170,000.00 0.00 Bradley Replace Electro-Mechanical Relays 0.00 1,277,197.06 0.00 1,277,197.06 0.00 Fishwater Screen Debris Removal 0.00 312,236.43 0.00 312,236.43 0.00 Turbine Nozzel Repair 0.00 1,428,861.07 0.00 1,428,861.07 0.00 Spillway Raise 0.00 0.00 0.00 0.00 0.00 SVC replacement Daves Creek | Soldotna 0.00 8,517,991.11 0.00 8,517,991.11 0.00 Equipment Storage Shed 510,550.13 510,550.13 0.00 510,550.13 0.00 Emerson Operating System Upgrade 622,665.00 622,665.00 0.00 622,665.00 0.00 Generator #2 Replacement 582,341.67 582,341.67 188,390.04 770,731.71 0.00 1,715,556.80 26,608,507.86 209,950.98 26,818,458.84 150,000.00 Current Year R&C Repayment (2,746,068.00) (1,767,830.00) Adjust to balance to $5million 0.00 0.00 Interest in Fund Applied to Repayment (117,149.21) (175,199.72) Net Transfer from Revenue Fund (2,863,217.21) (1,943,029.72) Cumulative Prior Years R&C Repayments (20,465,255.55) (23,240,089.01) Due Back to Utilities 88,383.75 (284,746.99) Adjust Due to R&C Actual 0.00 0.00 (20,376,871.80) (23,524,836.00) NET DUE TO R&C FUND 3,368,418.85 1,350,593.13 R&C FUND CASH FLOW PROJECTION Beginning Investment Balance 1,013,291.03 2,435,913.25 Disbursements-current year -Accrual (999,608.45) 0.00 Disbursements-prior year accrued 0.00 (721,894.25) Utilities' R&C Refund (440,986.54) (88,383.75) Net other cash inflow(outflow) 0.00 0.00 Current year interest earnings 117,149.21 175,199.72 Participants Contributions to R&C Fund 2,746,068.00 1,767,830.00 Ending Investment Balance 2,435,913.25 3,568,664.97 Accrued Due to Utilities (88,383.75) 284,746.99 R&C payable back to the revenue fund 0.00 0.00 Accrued R&C vendor Payable at Year End (715,948.35) (204,005.08) PROJECTED NET DUE + ENDING INVESTMENT BALANCE 5,000,000.00 5,000,000.00 REPAYMENT AMOUNT $5,644,193.08 x 25% all 4 years 4th 1,411,048.27 4th 1,411,048.27 $1,341,405.96 x 25% all 4 years 3rd 335,351.49 3rd 335,351.49 $1,625,945.94 x 25% all 4 years 2nd 428,889.20 2nd 428,889.20 $209,950.98 x 25% all 4 years 1st 1st 52,487.75 2,774,833.46 2,227,776.71 Page 7 of 9 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Battle Creek Capital Purchases Schedule E Expenses for the period 07/01/19 to 04/30/20 FY18 FY19 FY20 FY20 Actuals Actuals Budget Actual Used 2007 Chevrolet Silverado 8,800 - Used 2006 Chevrolet Silverado 7,700 - Battle Creek-Interface Consulting - - 775,000 782,622 Total capital revenue fund purchases 16,500 - 775,000 782,622 Battle Creek Capital Purchases Page 8 of 9 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Battle Creek Administrative Costs Schedule F Expenses for the period 07/01/19 through 04/30/20 Run Date: 07/15/20 Entry No. Range: 1..2770369 FY20 Aprroved Budget Budget % 07/01/19 - 04/30/20 HEA Actual AEA Actual Total Actual (Over) Under Budget to Date FY19 Approved Budget Total Actual Summary By Expense Type Administrative Costs $ 395,424.00 $ 329,520.00 $ 241,652.68 $ 206,381.90 $ 448,034.58 (118,514.58)$ $ 453,988 $ 527,723.00 395,424.00$ 329,520.00$ 241,652.68$ 206,381.90$ 448,034.58$ (118,514.58)$ 453,988$ 527,723.00$ FERC 920 & 930 - Administrative Expense AEA Bradley Fixed Admin Fees Administrative Costs 117,274.00$ 97,728.33$ 10,780$ 87,512$ 98,292$ (563.19)$ 176,193$ 175,421$ AEA Bradley Fixed Admin Fees Total 117,274.00$ 97,728.33$ 10,780$ 87,512$ 98,292$ (563.19)$ 176,193$ 175,421$ Operating Committee Exp-Legal Administrative Costs 15,000.00$ 12,500.00$ -$ 114,792$ 114,792$ (102,292.13)$ 15,000$ 34,795$ Operating Committee Exp-Legal Total 15,000.00$ 12,500.00$ -$ 114,792$ 114,792$ (102,292.13)$ 15,000$ 34,795$ Operat Committee Exp-Arbitrage Administrative Costs 2,000.00$ 1,666.67$ -$ -$ -$ 1,666.67$ 2,000$ 1,690$ Operat Committee Exp-Arbitrage Total 2,000.00$ 1,666.67$ -$ -$ -$ 1,666.67$ 2,000$ 1,690$ Trust & Account Fees Administrative Costs 4,800.00$ 4,000.00$ -$ 4,000$ 4,000$ -$ 6,550$ 4,083$ Trust & Account Fees Total 4,800.00$ 4,000.00$ -$ 4,000$ 4,000$ -$ 6,550$ 4,083$ Misc Admin Administrative Costs 100.00$ 83.33$ -$ 78$ 78$ 5.55$ -$ 83$ Misc Admin Total 100.00$ 83.33$ -$ 78$ 78$ 5.55$ -$ 83$ Professional consultants Administrative Costs 256,250.00$ 213,541.67$ 230,873$ -$ 230,873$ (17,331.48)$ 254,245$ 311,652$ Professional consultants Total 256,250.00$ 213,541.67$ 230,873$ -$ 230,873$ (17,331.48)$ 254,245$ 311,652$ FERC 920 & 930 - Administrative Expense Total 395,424.00$ 329,520.00$ 241,653$ 206,382$ 448,035$ (118,514.58)$ 453,988$ 527,723$ FY 20 FY 19 H:\Accounting\AEA FY20 FS Shared Files\Bradley Lake\Monthly Reports\10-May.xlsx 7/17/2020 3:11 PM 9 of 9