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HomeMy WebLinkAbout2023-01-20 BPMC Agenda and docsBRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA Friday January 20, 2023 Immediately Following the 9:00 am IMC Meeting To participate dial 1-888-585-9008 and use code 212-753-619# 1. CALL TO ORDER 2. ROLL CALL (for Committee members) 3. PUBLIC ROLL CALL (for all others present) 4. AGENDA APPROVAL 5. PUBLIC COMMENTS 6. APPROVAL OF MEETING MINUTES – December 9, 2022 7. EXECUTIVE SESSION – (Bylaws Section 5.11.4) – To discuss confidential financial matters regarding Required Project Work and financing, the immediate knowledge of which may have an adverse effect on the Authority or Project. 8. NEW BUSINESS A. FY22 BPMC Audited Financial Statements B. FY22 BPMC Audit – Update FY22 Refund of Surplus 9. OLD BUSINESS A. Railbelt Reliability Coordination Update Brian Hickey i. GRIP Concept Paper 3 (Final Submitted) ii. Special Committee on Required Project Work 10. OPERATORS REPORT HEA 11. COMMITTEE REPORTS A. Budget to Actuals Report Budget Subcommittee B. O&D Report Russell Thornton 12. MEMBERS COMMENTS 13. NEXT MEETING DATE – March 24, 2023 14. ADJOURNMENT Current Liabilities per BPMC FY22 Financial Statements Payable to Utilities ‐ O & M Refund 958,542.78$        Payable to Utilities ‐ R & C Refund 209,056.72          Total Bradley Lake Refund 1,167,599.50       Payable to Utilities ‐ O & M Refund 38,489.96            Payable to Utilities ‐ R & C Refund 169,102.27          Total Battle Creek Refund 207,592.23          Payable to Utilities ‐ O & M Refund 677,016.67          Total SSQ Line Refund 677,016.67$        Bradley Lake Refunds by Utility Utility Percent Shared FY22 Refund Chugach Electric 56.30% 657,358.52$       Homer Electric 12.00% 140,111.94          Matanuska Electric 13.80% 161,128.73          Golden Valley Electric 16.90% 197,324.32          City of Seward 1.00% 11,676.00            100.00% 1,167,599.51$    Battle Creek Refunds by Utility Utility Percent Shared FY22 Refund Chugach Electric 30.40% 63,108.04$          Homer Electric 37.90% 78,677.46            Matanuska Electric 13.80% 28,647.73            Golden Valley Electric 16.90% 35,083.09            City of Seward 1.00% 2,075.93              100.00% 207,592.25$       SSQ Line Refunds by Utility Utility Percent Shared FY22 Refund Chugach Electric 56.30% 381,160.39$       Homer Electric 12.00% 81,242.00            Matanuska Electric 13.80% 93,428.30            Golden Valley Electric 16.90% 114,415.82          City of Seward 1.00% 6,770.17              100.00% 677,016.68$       Total Refund Due to Each Utility Utility FY22 Refund Chugach Electric 1,101,626.95$    Homer Electric 300,031.40          Matanuska Electric 283,204.76          Golden Valley Electric 346,823.23          City of Seward 20,522.10            Total Payment 2,052,208.44$    Balance check 2,052,208.40      Off 0.04                      Bradley Lake Project Management Committee FY22 Refund of Surplus Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Concept Paper Railbelt Innovation Resiliency Project (RIR) Topic Area 3: Grid Innovation Applicant: The Alaska Energy Authority (AEA) representing the State of Alaska Technical Point of Contact: Bryan Carey, Director of Owned Assets, AEA Business Point of Contact: Curtis Thayer, Executive Director, AEA The AEA and Railbelt electric utilities are partners in this project as collaborative decision makers representing all the primary transmission owners and operators of Alaska’s largest electrical grid (the Railbelt). The project team consists of: 1. AEA 2. Chugach Electric Association Inc. (CEA), a Central Region cooperative 3. Golden Valley Electric Association Inc. (GVEA), a Northern Region cooperative 4. Homer Electric Association Inc. (HEA), a Southern Region cooperative 5. Matanuska Electric Association Inc. (MEA), a Central Region cooperative (MEA) 6. The City of Seward, Alaska dba Seward Electric System (SES), a Southern Region municipal utility 7. The Regulatory Commission of Alaska (RCA) is participating as a team member in an advisory and regulatory role, as permitted by their statutory authority Project Location: All three regions (Northern, Central, and Southern) of the Alaska Railbelt electrical grid and the Eastern Region1. 1 Copper Valley Electric Association (CVEA) serves the Eastern Region and is a stakeholder knowledgeable about this application but is not a project team member. Area served by the Railbelt grid Area served by Copper Valley Electric Association Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 1 Project and Technical Description Alaska and the nation are at a crossroads of the need to develop a fuel-diverse, low-carbon economy, and a once-in-a-generation opportunity to invest in infrastructure. At this intersection, the collective mission of the Railbelt utilities and the State of Alaska is to build a resilient, clean, smart, and low-cost electrical grid. This grid must support a fuel-diverse energy landscape that drives sustainable economic development in Alaska and ensures the cost- effective delivery of energy to Railbelt consumers and beyond. The Railbelt utilities and State share a vision: a collaborative future in the Railbelt in which our communities come together and share resources to strengthen and build a smart, clean electrical grid that promises our residents, our national defense infrastructure, and communities adjacent to the Railbelt access to clean, low-cost energy from any source. The Railbelt Innovation Resiliency project (RIR or Project), the subject of this GRIP Topic 3 Concept Paper, is one of a series of projects that constitute the Railbelt’s Grid Modernization and Resiliency Plan (GMRP or Plan)2. The RIR effort proposed in this Topic 3 funding cycle will construct an interregional transmission line (including a high voltage direct current (HVDC) submarine cable) parallel to the single line that currently ties the Southern and Central regions together. The project includes two Battery Energy Storage Systems (BESS), one each in the Central and Northern regions, to augment the existing 46 MW, 2-hour battery in the Southern Region. The HVDC line and batteries will be operated and controlled simultaneously in real time to maximize transfer capability between regions and minimize spinning reserve requirements, improving resiliency and allowing the transfer of renewable energy. Discussion on how this project fulfills the GRIP FOA eligibility requirements begins on page 10 of this document. The team assembled for this project includes stakeholder outreach experts, engineers, project managers, and the executive-level decision makers for the Railbelt utilities and AEA. The team will work diligently to integrate other regional stakeholders into the process, as described in the Community Benefits Plan section. The project team intends to apply in subsequent cycles for funding to complete the transmission line between the Southern and Northern regions by extending the transmission line in this funding request from the Central Region to Healy in the Northern Region. In the final funding cycle, the project team will submit the completion of RIR Phase 2, constructing a transmission line integrating the Copper Valley in the Eastern Region into the Railbelt grid and providing an alternate path to feed the Ground-based Midcourse Defense (GMD) system and Black Rapids Arctic Warfare Training Center at Fort Greely in the Northern Region. 2 The GMRP consists of interregional transmission interconnection improvements and a coordinated energy storage/HVDC system: More specifically these are: 1) upgrades to the Railbelt Backbone, the Railbelt’s existing transmission system (the Railbelt Backbone Rebuild) 2) a second interregional tie between the Southern, Central, and Northern regions, 3) battery energy storage systems (BESS) in each region operating in real-time coordination with an HVDC system to maximize transfer capability and minimize spinning reserve requirements, and 4) an interregional tie between the Central and Northern regions integrating the Copper River Valley (currently a stand- alone system) into the Railbelt grid and providing a second feed into the U.S. Department of Defense GMD system at Fort Greely. Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 2 Fort Greely is currently served by a single radial transmission line from Fairbanks. These subsequent projects would complete the full GMRP. Grip Topic 3 is coordinated with but distinct from the project team’s requests in GRIP Topics 1 and 2. In GRIP Topic 1 the team is seeking federal assistance for the reconstruction of the antiquated and end of useful life transmission assets that comprise the existing transmission system backbone. In GRIP Topic 2, the Railbelt utilities and AEA are seeking federal assistance for design and procurement of the interregional battery-HVDC control and monitoring system, which would provide simultaneous interregional control. In Grip Topic 3, this concept paper, the project team is seeking assistance in constructing the actual HVDC line and BESSs. Although the GMRP in total provides the greatest benefit to Alaska and the strongest opportunity to advance federal policy interests, each of its components provide value in their own right. The team will seek funding to complete the entire GMRP; however, as noted below, without significant federal and state assistance the GMRP will take many decades to complete. Through the GMRP, there exists an opportunity for a transformational series of transmission infrastructure improvements estimated to cost ~$2.87 B. Successful and accelerated implementation of the GMRP will prepare the Railbelt grid in terms of resiliency and reliability necessary for the development of a more fuel diverse low carbon future in Alaska that can serve as a model for the rest of the United States and the world. Given the nature of the Railbelt and the disparate socioeconomic status and vast diversity of its communities as described below, learnings from this undertaking will be broadly applicable to the larger grids of the contiguous lower forty-eight states and North America. As described in this concept paper, the Railbelt grid is an isolated3, long-distance, fully functioning electric grid built on a relatively small scale that serves nearly three quarters of Alaska’s population. Yet, the grid’s aging infrastructure is inadequate by traditional industry standards. For example, although Alaska is not regulated by the North American Electric Reliability Corporation (NERC), NERC standards would require the construction of the GMRP projects to meet its reliability and resiliency standards. The GRIP provides an opportunity to successfully modernize the Railbelt grid to support the state’s isolated population core and to facilitate decarbonization of the broader Alaska economy. The AEA and the Railbelt utilities are investigating large-scale, known-resource wind projects in the Northern Region near Fairbanks; in the Central Region on the east and west sides of Cook Inlet; and in the Southern Region north of Kachemak Bay and the upper Gulf of Alaska near the mouth of Cook Inlet. Additionally, AEA and the Railbelt utilities are investigating hydroelectric resources in the Southern Region, solar farms in the Central and Southern regions, and potential hydroelectric resources in the Eastern Region. The economics of integrating any of these projects into the Railbelt grid will require the participation of all five Railbelt electric utilities, the State, and in the case of the Eastern Region, CVEA, a stand-alone, islanded electric utility. For these utilities to participate in any of these renewable or low carbon energy projects, firm transmission access to generation resources must be assured. Firm transmission access will 3 The Railbelt is a stand-alone grid not interconnected with any other electric system. Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 3 require completion of the GMRP. Thus, GMRP completion is the key to decarbonizing the Railbelt grid. Due to the population diversity within the Railbelt and scale of the infrastructure, the federal government has an opportunity to utilize the Railbelt grid as a model to demonstrate both the objectives and vision of the bipartisan Infrastructure Investment and Jobs Act (IIJA) and other initiatives. The lessons learned from this demonstration will have broad applicability to the larger grids of the contiguous lower forty-eight states. The project team looks forward to collaborating with the national labs to ensure such learnings are transferred to national stakeholders. As discussed more fully in the Community Benefits Plan section, the Railbelt region is home to numerous federally recognized tribes and disadvantaged and underserved communities. There are over 200 federally recognized tribes in Alaska, many in the Railbelt region, and based on the 2010 census Anchorage is home to the three most culturally diverse census tracts in the U.S. (followed closely by Queens, New York)4. One hundred and ten languages are spoken in the Anchorage School District alone.5 With this socially and economically diverse makeup, the Railbelt is the ideal area for the federal government to demonstrate how the benefits of the IIJA can be maximized. The Railbelt serves five military bases, as depicted in Figure 1, each with a vital strategic importance to U.S. national security. These critical bases contribute to the national defense through airborne infantry, military intelligence, mid-course missile defense, global telecommunications downlink infrastructure, Long Range Discrimination Radar (LRDR), F-16, F-22, and F-35 high-speed intercept capability, and Coast Guard, among other ways. As noted in the White House’s Indo-Pacific Strategy (February 2022), these defense capabilities are vital to our national security and prosperity. The GMRP will support the transition of Alaska-based U.S. Department of Defense assets to a low-carbon future and improve resiliency by building a redundant transmission line to serve the GMD system near Ft. Greely. The Railbelt is essential to the broader state economy. The Port of Alaska, a federally designated Strategic Seaport in Anchorage, serves as the primary point of entry for virtually all cargo, building material, fuel, and food for most of the state’s population. Additionally, the Ted 4 https://www.cnn.com/2015/06/12/us/most-diverse-place-in-america/index.html 5 https://www.asdk12.org/aboutasd/ Railbelt Military Bases Figure 1: Military Bases Served by the Railbelt Grid Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 4 Stevens Anchorage International Airport is the fourth largest international airport in the world in terms of cargo throughput (approximately 50% of the air cargo between North America and Asia), making its decarbonization of global importance. Alaska is home to significant mining operations including for rare earth metals critical to national security and other strategic imperatives. These assets are vital to the economy and security of both Alaska and the nation. The RIR will deliver broad and substantial benefits to the Railbelt and the state. Those benefits include improved regional and interregional reliability, resiliency and transfer capacity, increased ability to integrate renewable and other low carbon energy projects, reduction in carbon emissions and transmission system losses, increasing geographic and technological diversity of the Railbelt grid generation portfolio, facilitation of decarbonized beneficial electrification, and the eventual decarbonization of the electric grid. More significantly, over time this project and the broader GMRP will help stabilize electric rates throughout the state. Alaskans pay some of the highest electric rates in the country6, which disproportionately impact the disadvantaged and underserved. Stabilizing Railbelt rates will in turn help address the even higher cost of energy in rural Alaska not served by the Railbelt, with close to 30% of the state’s population. The state’s innovative, equity-sharing Power Cost Equalization (PCE) program7 mitigates rural costs using a formula based in part on the price of Railbelt electricity. This program spreads benefits realized by investment in the Railbelt to virtually every village in Alaska, most of which are Disadvantaged Communities. The GRIP program objectives are met and complimented by the State’s and utilities’ goal of a resilient, clean, and low-cost electrical network that supports sustainable economic development in the region, decarbonization, and cost-effective energy delivery. All the Railbelt electric utilities are either electric cooperatives or, in the case of the City of Seward Electric System (SES), municipally owned8. Thus, virtually all benefits from this grid modernization effort flow directly to the member-owners, the residents, businesses, and communities of the Railbelt, and indirectly to the rest of the State through PCE. The Railbelt is effectively a proving ground where the Department of Energy (DOE) and other federal agencies can evaluate and successfully demonstrate transmission resiliency improvements in preparation for electric decarbonization, both technically and on a community basis. Notably, this can be achieved at a relatively low cost in the Railbelt grid. The RIR project will have the full support and cooperation of the State and utility project team. This team consists of representatives of the State of Alaska and each of the five Railbelt electric utilities9, and of the 6 Energy Information Administration (EIA) form EIA-826. 7 The Community Benefits Plan section beginning on Page 13 provides additional discussion on Power Cost Equalization. 8 The City of Seward, a municipal, public power utility at ~1% of total Railbelt electricity demand. 9 The five Railbelt Electric Utilities consist of Golden Valley Electric Association Inc. in the Northern Region, Matanuska Electric Association Inc., and Chugach Electric Association Inc. in the Central Region, and Seward Electric System and Homer Electric System Inc. in the Southern Region. Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 5 RCA, the state’s utility regulator10. The team members are committed to the GMRP, subject to governance board approvals and vetting through the National Environmental Policy Act (NEPA) process. The State and the Railbelt utilities are committed to upgrading the regional and interregional transmission system. On December 2, 2022, AEA closed on a bond package for $166M, 65% of which will be dedicated to transmission line reconstruction and 35% to the three regional grid stabilization BESSs. The Railbelt utilities will pay the debt service on this bond package. In later funding cycles, other segments of the RIR will be constructed as study work is completed and regional and interregional approval is obtained. State funding assistance11 to help close the gap between utility funding and federal assistance is being pursued. The team plans to apply for all applicable IIJA and Inflation Reduction Act (IRA) federal assistance for GMRP projects. In addition, the team is seeking State appropriations to augment federal funds. The GMRP upgraded grid will create an unrestricted electron freeway and allow the Railbelt to optimize the use of cost-effective, low-carbon technologies by eliminating current technical and geographic constraints of the transmission system. Background The Railbelt Grid The Railbelt electric grid is unique in North America as it is a fully functioning, long-distance electrical grid with a relatively small load. The Railbelt is characterized by three load-generation regions. These load- generation concentrations are known as the Northern Region (Fairbanks-Delta Junction), the Central Region (Anchorage- Matanuska-Susitna Valleys, and Southern Region (the Kenai Peninsula). The Southern and Central regions are joined by a single, 140 mile long 115 kV transmission line through many avalanche areas. The Central and Northern regions are connected by a 169-mile, 138 kV line through mountainous 10 On January 4, 2023, the RCA unanimously passed the following motion “I [Commissioner Pickett] will make a motion that the RCA be considered as a [Alaska Railbelt GRIP] team member subject to any legal restrictions we may have and to consider probably in the format of an I docket, uncommon or innovative regulatory structures [to incentivize transmission investment].” 11The October 26,2022 letter from Railbelt utility managers to Governor Michael Dunleavy is available for review. Railbelt Grid Figure 2: Alaska’s Relative Size Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 6 terrain accessible only by helicopter. The grid provides electricity to approximately 70% of the state's population and generates 80% of the electricity in Alaska. It extends over 700 miles from the Bradley Lake Project, located at the head of Kachemak Bay near Homer, Alaska, in the Southern Region, to Delta Junction in the Northern Region, roughly the distance from Washington, DC, to Atlanta, Georgia, as depicted in Figure 2. The grid traverses inhospitable, mountainous, subarctic terrain. The region is laced with highly active seismic zones and is subject to volcanic eruptions, forest fires, flooding, and fierce annual winter storms. The grid's assets vary from high voltage (138 kV and 230 kV) submarine cable crossings in Cook Inlet12 to remote helicopter/riverboat -access-only river crossings and numerous transmission structures at high elevations in this subarctic environment. Unlike numerous areas in the contiguous lower forty-eight states, the Railbelt has received minimal federal investment in grid development over Alaska’s history. The Eklutna Hydroelectric Project, initially constructed in the 1950s, was the last major federal project in the Railbelt that included a transmission line component. A portion of this project was rebuilt by the Bureau of Reclamation's Alaska Power Administration after the 1964 Good Friday Earthquake and sold by the federal government to the Railbelt’s Central Region utilities in the early 1990s. The Railbelt’s Northern Region is loosely interconnected, primarily at 69 kV and 138 kV. The Central Region is moderately well interconnected with multiple 230, 138, and 115 kV lines. The Southern Region is interconnected at 115 kV but includes a radial feed to the SES system. A tight power pool operates in the Central Region and an active economy energy market exists between regions but is severely limited by transmission constraints and a lack of transmission lines. A generation contingency reserve-sharing pool exists between all three regions. Because the transmission interconnections are vulnerable to single contingencies, each region is responsible for its own operating and off-line reserves. Due to the relatively feeble regional interconnections, the Railbelt grid is technically characterized as "transient stability limited," with machines under dynamic stress swinging against other machines within the region, and with regions swinging against each other across the light interregional interconnections. The grid is susceptible to transient stability and large-scale, small-signal instability oscillations. Voltage stability, which varies from marginal to good depending on the specific area, has been improved with the addition of six static volt-amps-reactive (VAR) compensators at critical locations. The grid operates under a subset of NERC standards modified to account for the scale, nature, and economic limitations of the interconnection (the grid's system bias is variable and ranges from 3-10 MW/.1 hertz). In 2024 these standards will become mandatory and enforceable under a recently certificated electric reliability organization, the Railbelt Reliability Council. The grid has a sophisticated under-frequency load shed scheme which sheds load to match generation in four stages with varying time delays and includes frequency rate of change relays. Traditional day-ahead and real-time security constrained economic dispatch are run in 12 Cook Inlet is a silt laden 180-mile inlet reaching from Knik Arm to the Gulf of Alaska. The inlet has the fourth highest tidal range in the world at 30.3 feet and contains an endangered subspecies of the beluga whale. Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 7 each Load Balancing Area (LBA) with net interchange, and frequency monitored and managed to Alaska Standard AK BAL-001 which incorporates NERC CPS 1 and 2. Dynamic events on the grid occur and resolve very quickly (2-10 seconds) when compared with the much larger North American grids (the Eastern Interconnection, the Western Interconnection, and ERCOT), which resolve in tens of minutes. The grid's peak demand is roughly 750 MW compared to ERCOT's 13 peak demand of 85,000 MW. The grid's annual energy consumption is approximately 4,800 GWH compared to ERCOT’s at 339,000 GWH. The Railbelt Grid Modernization and Resiliency Plan Today, the broader energy landscape in Alaska and across the world is being reshaped by multiple change drivers. Geopolitical shifts are dramatically altering global energy markets. Decarbonization policies and technological advancements shaped by increasingly dramatic climate change are both the result of and contributing to a shift in popular sentiment about energy and the environment. Regionally, uncertainty around declining Cook Inlet natural gas 14 and broader fuel supply issues for the utilities is a critical – and shared – challenge looming on the near-term horizon. In response to this shared challenge, the State and Railbelt utilities have come together to develop a broad-based, long- term plan to ensure the future energy viability of the Railbelt from a social, economic, and technical perspective. The technical aspect of that plan is the GMRP, of which the RIR (the focus of this funding request) is a component. We intend to submit the GMRP as the Railbelt’s contribution to Alaska’s broader State Energy Security Plan as that document is developed in the coming months. Figure 3 is a graphic representation of the current Railbelt grid with the GMRP components overlaid. The GMRP components that comprise the RIR 2022-23 funding cycle project costs are highlighted in yellow. A more detailed geographic GMRP map with component projects and estimated costs is available upon request. 13 ERCOT is by far the smallest of the North American interconnections. 14 Natural gas is used to generate 80% of the electricity in the Railbelt and is also the primary source of energy for home heating in the Central and Southern regions. Figure 3: RIR Components in Current Funding Cycle Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 8 In the 2022-23 GRIP Topic 3 funding cycle, the State and utilities are requesting $298,600,000, representing 50% of the 2022-23 RIR project costs. The same team will seek federal assistance for the remaining project costs in subsequent Topic 3 funding cycles. Figure 4 is a graphic representation of the Railbelt system with an overlay of the GMRP. The entire RIR project (topic of this concept paper) is highlighted in yellow. The Railbelt Backbone Reconstruction is highlighted in red, and the BESS-HVDC control project (at locations highlighted with the blue “C”) comprise the remainder of the GMRP15. The estimated total cost for the GMRP is $2.87B over 15 years. Given the Railbelt’s small population, without significant federal and state investment the GMRP and its RIR component would take many decades to finance and construct. The costs are too high for the limited number of Railbelt customers to absorb. This delay will in turn hinder the Railbelt’s ability to decarbonize both the grid and the broader economy. The project team intends to apply for federal funding for specific GMRP components in each of the five funding periods of the GRIP and IRA, and also USDA Rural Utility Services (RUS) loan programs. In addition to these federal requests, the team is seeking state funding with the remainder of plan costs to be funded by Railbelt utilities. The utilities have requested, and the RCA has agreed, to evaluate innovative ratemaking strategies to promote the completion of the GMRP, e.g., accelerated application of costs to rate base or forward funding of project costs, among others.16 15 Subjects of the project team’s Topics 1 and 2 concept papers. 16 The RCA is the statutorily authorized regulator of the Railbelt electric utilities. The RCA discussion to evaluate innovative ratemaking strategies can be found in the minutes of the RCA’s January 4, 2023, special public meeting at https://rca.alaska.gov/RCAWeb/MeetingDetails/CommissionMeetingDetails.aspx?id=f44c5897-045b-4d7c-a59b- d650bdb52a2e Railbelt Innovation and Resiliency Project Cost 2022-2023 2024-27 Southern Region to Central Region HVDC Cable and Regional Battery Energy Storage $597,100,000 $870,400,000 Figure 4: RIR, RBR and BESS-HVDC Projects Comprising the Railbelt Grid Modernization and Resiliency Plan (GMRP) Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 9 The priority improvements required to allow diversification of the Railbelt fuel supply and decarbonization of the Railbelt grid must be providing frequency stability and decongesting the transmission system. These improvements are required irrespective of the nature of fuel supply diversity and decarbonization solutions. In 2010, the Railbelt's frequency was equal to 60 Hz. approximately 44 % of the time. By 2021, the grid operated at 60 Hz about 17% of the time. The primary causes of this deterioration of frequency control are the introduction of lighter, more efficient aero-derivative turbines, efficiency-driven (as opposed to response-driven) plant control systems, and the introduction of non-dispatchable renewables in the form of solar and wind generators. Stabilizing frequency and decongesting the grid will require upgrading existing transmission lines and building a new transmission interconnection from the Southern Region to the Central Region and on to Healy in the Northern Region, and development of a regional BESS-HVDC real-time control and optimization scheme. These steps are the core of the GMRP. A subsequent phase will include a transmission interconnection from Wasilla in the Central Region to Glenallen in the Eastern Region, and north to interconnect with the GVEA system at Fort Greely and the GMD System in the Northern Region. The following table estimates the high-level GMRP timeline and associated estimated costs. The priority and timing of projects may vary given the outcome of funding opportunities17, NEPA processes, the evolving nature of low carbon generation development, and Cook Inlet fuel supply changes. The Railbelt Innovation Resiliency Project The subject of this concept paper is the RIR, which is: • Construction of transmission lines and an HVDC submarine cable paralleling the existing single transmission line between the Southern and Central regions • Construction of two large-scale BESSs, one in the Northern Region and one in the Central Region, which will augment the existing 46 MW, 2-hour battery in the Southern Region These three batteries and the HVDC line will be operated in a coordinated, simultaneous fashion, in real-time, to maximize transfer capability and minimize spinning reserve requirements. The need for constructing a resilient transmission grid with multiple interregional interconnections was established in studies beginning with the development of the Bradley Lake Project in the late 1980s and confirmed as recently as 2017 in AEA’s Railbelt Regional 17 Full funding of requests in GRIP Topics 1, 2, and 3 may accelerate the 2023-2027 effort, pushing it above the estimated $934,000,000. Grid Modernization and Resiliency Plan (GMRP) Decarbonization and Fuel Diversity Transmission Build-Out 2023-2027 2028-2032 2035-2037 Southern Region (Kenai Peninsula) to Central Region (Anchorage Mat-Su) + Energy Storage $934,000,000 Central Region to Northern Region (Fairbanks-Delta Junction) Phase 1 $981,000,000 Central Region to Northern Region Phase 2 and Roadbelt (Wasilla-Glenallen-Delta Junction)$958,000,000 Total Fifteen Year Transmission Spend $2,873,000,000 Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 10 Integrated Resource Transmission Plan. The RIR components addressed in this concept paper have historically received broad support within the Railbelt. This support will aid in moving the projects more quickly to design, permitting and construction. Project Eligibility and Area of Interest The RIR project meets the DOE’s objectives as expressed in the Topic 3, Area of Interest 1: Transmission System Applications18, as detailed below: 1. Investments and strategies that accelerate interconnection of clean energy generation and/or storage: Railbelt grid frequency stabilization and transmission system decongestion will allow development of large-scale interregional wind and solar projects by improving their economic and technical viability. With a reinforced transmission system, the geographical diversity of wind and solar will contribute to reduced storage requirements. The more robust transmission system will also allow interregional planning and dispatching stored resources, which will reduce storage resources required in individual regions. These improvements will also enable beneficial electrification on a large-scale, e.g., electric vehicles and space heating. 2. Interregional or cross-ISO/RTO projects that address key grid reliability, flexibility, and/or resilience challenges: The three Railbelt regions (Southern, Central, and Northern) are joined by single transient stability limited interconnections. The RIR project will remove single contingency constraints and increase interregional transfer capacity. 3. Projects addressing grid access challenges for remote, stranded, or novel low-carbon resources: The improved interregional grid (in terms of resilience and improved transfer capability) will increase the economic viability of and thus increase utility participation in geographically diverse wind and solar projects by enabling greater scale and driving per- unit costs down. From a technical perspective, stabilizing grid frequency and maximizing or eliminating transient stability limits and small-signal instability susceptibility will allow a larger scale integration of non-dispatchable renewables. Railbelt-wide coordination of BESS/HVDC resources will increase the amount of renewables sustainable in the Railbelt without increasing the amount of BESS resources. 4. Planning, modeling, cost allocation, or other approaches that enable a transition to innovative financial and/or regulatory constructs that accelerate transmission expansion: RCA participation in the RIR and broader GMRP efforts will likely create an innovative regulatory framework that allows the utilities to maximize their financial participation in this project and others, e.g., early inclusion of transmission construction costs in rates or forward funding of portions of these costs, thereby minimizing carrying costs. 5. Underground or underwater HVDC systems in challenging environments: The Nikiski to Beluga HVDC submarine cable will cross Cook Inlet, a challenging marine environment. 18 Funding Opportunity Announcement (FOA) Number: DE-FOA-0002740 pp 31-32 Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 11 Cook Inlet is laden with glacial silt corrosive to armored cables19; has some of the highest tides in the world, peaking at 30 feet; is home to an endangered subspecies of beluga whale; and hosts numerous subsea petroleum and natural gas pipelines. 6. Capacity enhancing approaches such as advanced conductors, dynamic line rating systems: The geographically disparate combined BESS-HVDC system will be controlled in a real-time, coordinated fashion that provides real-time, dynamic maximization of transfer capability and minimization of spinning reserves. 7. Congestion management techniques including energy storage and integrated controls: See 6 above. 8. Transmission-scale reactive power devices: The BESSs are four-quadrant devices providing both real and reactive support, controlled and tuned to operate in dynamic synchronism with the six existing static VAR compensators. 9. Power flow controllers for AC or High voltage Direct Current (HVDC) systems: See 6 above. Project Grid Benefits The RIR project will simultaneously increase transfer capability and resiliency between the three Railbelt regions. Currently, transfers are vulnerable to interruption due to the lack of resiliency and reliability that will be resolved via the RIR by second ties between the regions. Increased transfer capability reduces security constrained economic dispatch (SCED) constraints, resulting in more efficient generation dispatch. More efficient SCED will reduce overall fuel burn and reduce carbon emissions, saving money and advancing climate goals. Further, firm transmission capability and increased transfer capability will allow geographically diverse utilities to participate economically in renewables, by increasing economies of scale and reducing per-unit costs of renewables. Energy resiliency will be greatly improved by allowing energy sources in all three regions to participate in electricity restoration as opposed to limiting resiliency measures to three individual areas. Ultimately the RIR project, as a component of the larger GMRP, will improve resiliency, reliability, and efficiency, and facilitate the integration of additional renewables and variable generation whether in the Southern, Central, or Northern regions. Improving transmission security between the three areas will extend to all regions the benefits of geographically diverse renewables. With completion of the RIR effort contemplated under this funding cycle, the benefits noted above will extend in full to the Southern Region and in part to the Central Region. Completion of the broader GMRP (which requires the RIR as an initial component) will accrue the full value of these benefits to the entire Railbelt and Copper Valley. 19 An evaluation by CEA in the mid-1990s showed that of ten 138 kV AC oil-filled undersea cables installed between 1970 and 1990, the average cable life was approximately 15 years versus an industry expectation of 50 years. Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 12 Project Risk Reduction DOE investment in the RIR will provide valuable insights for contiguous lower forty-eight states’ grid planners and developers specifically with respect to long-distance, coordinated, real-time control of BESS and HVDC systems from real and reactive power perspectives. Applications of this technology will be particularly useful in isolated pockets of the larger contiguous lower forty-eight states where transient or small-signal instability present a challenge. There are several know project risks which we will address proactively; for example, the beluga whale endangered species challenge will be mitigated by early engagement with stakeholders, appropriate whale watch protocols, and bubble acoustic sound deadening construction techniques. Early bathymetry development and engagement with pipeline owners and state permitting will optimize circuit routing and minimize conflicts, e.g., cathodic protection. The abrasive nature of Cook Inlet silt will be mitigated by double armoring the cable, a solution that has proven effective on the most recently installed 138 kV submarine cable. Project DOE Funding to Leverage Outcomes DOE investment in the RIR will unlock state20 and local electric utility funding for this project and subsequent GMRP components. AEA and the utilities also look forward to collaborating with the national labs to integrate opportunities for additional innovation in the Railbelt effort. By advancing the GMRP’s cumulative broader impact, this RIR investment will transform the Railbelt transmission grid. This transformation will provide adequate transmission capability for broad regional participation in renewable and low-carbon generation projects. Broad participation will drive economies of scale and improve the cost profile of such projects, effectively easing the rate burden of the Green Premium21 that falls disproportionately on low income and underserved communities. Thus, the RIR and GMRP will facilitate the integration of renewable and low-carbon generation technologies from Homer to Fairbanks through an unrestricted electron freeway. Project Readiness, Viability, and Expected Timing As noted above, the RIR project can be accelerated through design, permitting, and construction stages due to the maturity of the existing study work of the proposed RIR segments. 20 See October 26, 2022, letter from the Railbelt electric utility managers to Alaska Governor Michael Dunleavy. 21 https://breakthroughenergy.org/our-approach/the-green-premium Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 13 Community Benefits Plan The Railbelt Innovation Resiliency project presents a unique opportunity to increase reliability, provide clean energy options, and reduce electricity rates for a 700-mile-long stretch of Alaska that serves as the state’s economic backbone and is home to approximately two-thirds of the state’s population. The same Railbelt region includes multiple disadvantaged communities (DACs), extensive veteran, Pacific Islander, and Alaska Native populations, and some of the most diverse neighborhoods in the nation. Importantly, the benefits of federal investment in the Railbelt are not limited to those directly connected to the Railbelt grid. The State of Alaska’s Power Cost Equalization (PCE) program extends the financial benefits of lower Railbelt electric rates to positively impact hundreds of remote communities statewide; even populations not connected to the Railbelt’s electric network benefit from reduced Railbelt rates. Most of these remote areas are DACs with extremely high power costs; PCE reduces costs in these communities based on a formula tied to Railbelt rates. This innovative, built-in transfer mechanism demonstrates Alaska’s prioritization of equitable benefits sharing and provides a time-tested means to ensure benefits from federal investment in the Railbelt extend to compounded communities targeted by Justice40. Having missed out on the federal government’s transformational infrastructure investments before Alaska statehood, residents of Alaska have long borne outsized infrastructure costs spread across relatively few homes, businesses, and industries. Alaskans have experienced a lack of redundancy and infrastructure that would be considered unacceptable in other parts of the U.S. Alaska residents and businesses have been underserved in comparison to the federal investment in electrical infrastructure and energy in the contiguous lower forty-eight states. Federal support would be a step closer to providing parity to Alaskans, including numerous DACs, tribal entities, and rural communities. The project team intends to identify project benefits, the anticipated recipients, and metrics to track and measure the benefits in its Community Benefits Plan (CBP) to meet the federal government’s four target goals (outlined below). The project team’s approach to this plan will be stakeholder driven, involving communities and entities anticipated to become partners through the project planning, execution, and operations stages. CBP development will benefit from early engagement with potential partners and stakeholders in order to define measurable project benefits, set workforce goals, and advance formal partnerships for inclusion in the CBP. Individuals in impacted communities and local institutions can provide invaluable insight into potential project benefits and outcomes that will inform the project development and execution. This stakeholder participation is critical up-front to ensure the project delivers expected benefits that reach the intended communities, while reducing possible adverse impacts. Defining the affected stakeholders early, establishing clear, durable communication channels, receiving concerns, and crafting measures to address those concerns are critical to managing project risks and ensuring desired objectives. Clear communication and collaboration during Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 14 development of the project application and the CBP will set a foundation for implementing the CBP during project development, construction, and operations. This engagement should be a continuous loop through the project design and execution. Given that the project team is made up of cooperatives, a municipal utility, and the State of Alaska, stakeholder engagement is central to the team’s regular businesses. The project team believes this extensive experience will provide key support in CBP development and execution. Early engagement with stakeholders is also expected to further the ability of communities, individuals, local governments, and tribal entities to unlock additional funding opportunities tied to the project. To that end, the project team will develop a robust CBP around the four FOA elements as detailed below. Across all elements, the project approach is founded on the belief that direct, early communication and meaningful exchange with other entities and communities will inform CBP development. Element 1: Community and labor engagement leading to negotiated agreements The project team members have established, long-term, and mutually valued relationships with the organized labor community in Alaska. The Railbelt utilities have used project labor agreements in the past for projects of this scale, e.g., construction of the Alaska Intertie. Each of the Railbelt utilities has collective bargaining agreements with the International Brotherhood of Electrical Workers, among other unions. The project approach to the CBP will be to engage its labor partners early to initiate discussions toward labor agreements. The CBP would establish a timeline and milestones for negotiations with organized labor, including discussions on local and targeted hiring goals, card-check neutrality, and possible provisions advancing programs to attract, train, and retain new workers. As the project applicant, the Alaska Energy Authority works with the Railbelt utilities as partners in several transmission organizations. The utilities and AEA have a successful record partnering both as owner/partners in shared capital projects and in advancing state energy goals and priorities. With state support affirmed in this way, the CBP would prioritize establishing and formalizing relationships with tribal entities, local governments, and other State of Alaska departments with a focus on workforce and related issues. Early engagement with these core stakeholders will also help ensure the project is cognizant of and in support of local energy plans and goals. The project team members individually are accustomed to engaging with local governments and tribal entities through permitting and regulatory processes for capital projects. The CBP for this project would establish milestones urging earlier dialogue with local governments and tribal entities. These conversations should begin sufficiently early to inform project development in response to local communities’ needs and concerns and to guide iterations of the CBP. Local governments and tribal entities are uniquely situated to help identify the most effective actions the project can take toward partnerships that advance workforce issues; diversity, equity, inclusion, and accessibility; and the flow of project benefits to disadvantaged communities. Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 15 AEA and its partner utilities have extensive experience engaging with local residents and businesses in town halls and similar formats; AEA is a state entity with obligations to the public interest, and the electric utilities are member-owned cooperatives (one is municipal with direct responsibilities to the city’s residents). The CBP will articulate a plan and schedule for these engagements to ensure individuals and businesses are aware of the project, including potential economic and clean energy opportunities the project could enable, and to receive and incorporate concerns and input into project development plans. Element 2: Investing in job quality and workforce continuity Given Alaska’s relative isolation and general need for living wage jobs, the project team members firmly support the development of workforce training institutions. The stakeholder engagement articulated above is expected to further inform the project team of workforce issues and opportunities, including opportunities to partner with existing programs and institutions to ensure a skilled and inclusive local workforce. Such opportunities would be evaluated for incorporation into the CBP. Alaska is not a right-to-work state. The Railbelt utilities’ employees who are covered by bargaining unit agreements are required to join unions consistent with the terms and conditions of the various utility bargaining unit agreements. Further, the utilities maintain strict policies fostering safe, healthy, inclusive workplaces free of discrimination and harassment. The utilities currently support continual development of a skilled, inclusive local workforce, specifically the IBEW-NECA Alaska Joint Electrical Apprenticeship and Training Trust, individual utility training programs, the University of Alaska System and other technical training programs. This track record of investment in the Alaskan and American workforce will be reflected in the CBP. The project team members will also continue support of STEM and energy literacy programs throughout the state as an investment in the future pipeline of critical energy-related jobs. Element 3: Advancing diversity, equity, inclusion, and accessibility The CBP will identify and evaluate potential actions to advance diversity, equity, inclusion, and accessibility in relation to the project. Alaska offers significant opportunities to engage underserved populations, including Alaska Native, Pacific Islander, and veteran residents. Stakeholder consultation, including with organized labor, is expected to identify potential workforce partnerships to encourage participation of these and similar communities in the project. Element 4: Contributing to the Justice40 Initiative goal that 40% of the overall benefits of certain climate and clean energy investments flow to disadvantaged communities Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 16 As discussed in the beginning of this section, the team believes its project presents a unique opportunity to extend benefits to much of Alaska, including DACs. The initial approach to this CBP element would be identifying potential partners and establishing relationships to assist in the plan development. Potential partners may include impacted DACs; state entities such as Department of Environmental Conservation, Department of Commerce, and Department of Labor and Workforce Development; academic or public policy/research institutions such as the University of Alaska, Alaska Center for Energy and Power, and the Institute for Social and Economic Research (ISER); and tribal and non-governmental entities, many of whom have prioritized affordable, clean energy as strategic goals. The project team intends to work with partners, stakeholders, and project technical teams to identify measurable, trackable benefits and determine which benefits are most meaningful to impacted communities. Engagement with institutional partners will help define disadvantaged communities within and proximate to the project area, and within the projected reach of the defined outcomes. Formulation of a stakeholder engagement plan and further consultation with DACs and other partners could help establish mechanisms to measure and track the investments and outcomes. The project team believes significant benefits can be realized in energy resiliency, reduction of energy and pollution poverty, and increased clean energy opportunities throughout the region and state, and would coordinate with partners and stakeholders to quantify these broader benefits within the CBP. Communities in the project region currently face potentially severe health, safety, and economic consequences resulting from grid threats such as earthquakes, severe cold weather events, and large-scale forest fires, often in remote areas. The project is also anticipated to increase clean energy options throughout the region, including for DACs and other rural communities, many of which are currently powered through coal or diesel-fired generation. The project is expected to reduce the potential consequences posed by these risks. The CBP should also capture the potential benefits of increased opportunities for tying new, clean- energy projects to the grid, especially smaller-scale projects. Project benefits are anticipated to include improvements to air quality across the project regions, especially in the Northern Region and other locations where particulate matter (PM2.5) pollution has risen to non- attainment levels high enough to trigger remediation efforts through the EPA and is adversely impacting the economy and health. Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 17 Addendum A The Railbelt utilities and AEA have worked together for over 30 years, from constructing the Bradley Lake Hydroelectric Project (BLHP), which was commissioned in 1992 at a cost of approximately $350M in 1990 dollars, to the most recent addition to the BLHP of the Sterling to Quartz 115 kV line. The BLHP added the West Fork Upper Battle Creek Diversion in 2020, a $45M diversion structure that increased the lake’s energy capacity water by approximately 10 percent. On December 1, 2022, AEA closed on a $166M bond package which will be used to begin the RIR project by upgrading the Sterling to Quartz section of the 115 kV Southern Region to Central Region transmission line (the Anchorage to Kenai 115kV line). Thirty-five percent of the bond issue will be used to fund three regional grid stabilization batteries, one of which has been constructed by HEA and is operational. The AEA and Railbelt utilities’ stakeholder outreach, engineering, and project management teams have many decades of stakeholder outreach, transmission, and generation engineering, construction, and operations experience. Many of the engineers are registered professional engineers (PE) and several are also registered project management professionals (PMP). Combined this group has successfully constructed and commissioned billions of dollars of grid infrastructure, as noted in their qualifications and expertise below. Alaska Energy Authority (AEA) AEA’s mission is to reduce the cost of energy in Alaska. As Alaska’s lead agency for statewide energy policy and program development, AEA collaborates with utilities, private companies, legislators, local governments, and Alaskan energy innovators to diversify the state’s energy portfolio. On the Railbelt, AEA owns the 120-megawatt Bradley Lake Hydroelectric Project, the largest in Alaska. AEA recently oversaw the West Fork Upper Battle Creek Diversion construction, which diverts glacial water from West Fork Upper Battle Creek into Bradley Lake increasing energy by 10%. In rural Alaska, AEA constructs bulk fuel tank farms, diesel powerhouses, and electrical distribution grids, and provides technical/community assistance to rural Alaskans. AEA’s dedicated team of engineers, economists, project managers, loan officers, and planners help Alaska’s cities, boroughs, utilities, tribal entities, schools, and private businesses move energy projects forward successfully. Curtis Thayer, Executive Director, AEA Since 2019, Curtis W. Thayer has served as executive director of AEA, the state's energy office and lead agency for statewide energy policy and program development. Before joining AEA, Thayer served as president and chief executive officer of the Alaska Chamber, the largest state trade association. Previously, he was the commissioner for the Department of Administration and cabinet member for Governor Sean Parnell, responsible for 1,100 public employees and an annual budget of $350 million. As part of his public service, he served as the deputy commissioner of the Department of Commerce, Community, and Economic Development, and worked in Washington, D.C., with Alaska’s Congressional Delegation. Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 18 Formerly, he was on the management team of ENSTAR Natural Gas Company and the Alaska Gas Producers Pipeline Team. Thayer has served on boards at Alaska Housing Finance Corporation, Alaska Gasline Development Corporation, Alaska Retirement Management Board, Alaska Royalty Oil and Gas Development Advisory Board, and United States Chambers’ Committee of 100, and currently chairs Alaska’s Board of Marine Pilots. A graduate of the United States Department of Energy’s National Renewable Energy Laboratory Executive Energy Leadership Institute program, Thayer has gained a comprehensive understanding of advanced energy technologies that has helped him guide his organizations in making energy-related decisions. He is also an alumnus of the United States Chamber of Commerce Foundation's Institute for Organization Management, which recognizes graduates as leaders in their industries and organizations. Thayer earned his bachelor’s degree from the University of Alaska Fairbanks with a major in political science and a minor in business. Bryan Carey, Director of Owned Assets, AEA Bryan Carey has worked more than 20 years on energy projects for AEA. During that time, he has been the project manager for the Bradley Lake Hydroelectric Project, Bradley Lake transmission assets, project engineer for the Susitna-Watana Hydroelectric Project, Alaska Industrial Development Export Authority’s (AIDEA) owned Snettisham Hydroelectric Project, and substantially participated in Railbelt Integrated Resource Planning. In addition, he has been the project manager for many rural Alaska energy projects including bulk fuel facilities, power plants, and small hydroelectric/wind projects. Recently, he managed the studies, licensing, and construction of the West Fork Upper Battle Creek Diversion Project ($47m) to increase energy output of Bradley Lake by 37,000 MWh a year. Mr. Carey received a Bachelor of Science in engineering from the University of Alaska Fairbanks and a Master of Business Administration from University of Alaska Anchorage. He is a registered Professional Engineer in Alaska. Railbelt Electric Utilities Seward Electric Systems, Golden Valley Electric Association Inc., Matanuska Electric Association Inc., and Homer Electric Association are all vertically integrated generation, transmission, and distribution utilities with many decades of planning, design, construction, and operation of power systems. The Railbelt is, and has been, an early adopter of technology over may decades; for example, virtually all protective relays in the Railbelt grid were converted to microprocessor-based technologies by the early 1990s, and currently most critical busses in the Railbelt have real-time synchro phaser capability. In the last decade the combined utilities have constructed nearly $1B dollars in generation22, a 46MW two-hour battery, and many miles of transmission. The utility members of the project team are highly qualified in the execution of projects proposed under the Grid Resiliency and Innovation Partnership funding opportunity. Seward Electric System 22 Conversion to the new generation portfolio reduced carbon emissions by nearly 30% over the last decade. Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 19 Rob Montgomery, General Manager, Seward Electric System Rob Montgomery is the General Manager of Seward Electric System, a municipal electric organization serving 3,000 meters in the City of Seward and surrounding communities. In this role, he is responsible for overall operations of the city’s electric utility. Mr. Montgomery has over 20 years of professional experience in the electric utility industry, including 15 years with South Carolina Electric & Gas Company (SCE&G) and six years with Tennessee Valley Authority (TVA). At SCE&G, Mr. Montgomery was responsible for all strategic communications and media relations. In this position, he directed efforts to create a pipeline safety communications plan to meet compliance requirements of the 2002 Pipeline Safety Improvement Act; led public outreach related to the construction of a $275-million, federally mandated back-up dam on Lake Murray in Columbia, S.C.; and managed communications and conducted public workshops when communities were impacted by new federal laws for clearing and maintaining rights of way near high-voltage transmission lines. At TVA, he was responsible for strategic communications and served as a primary liaison with the Tennessee Valley Public Power Association. Mr. Montgomery is a graduate of the University of South Carolina with a degree in journalism and holds a certificate from Duke University’s Executive Leadership Program. Golden Valley Electric Association (GVEA) Dan Bishop, Director of Engineering Services, GVEA Dan Bishop has been responsible for the design and construction of electric transmission lines and substations throughout Alaska. His experience includes drafting, structural design, electrical design, project management, quality control during construction, leading teams of engineers and technicians, planning studies, budgeting, and executive management. He received his Bachelor of Science and Master of Science in Electrical Engineering from the University of Alaska Fairbanks and has been a registered professional engineer since 1993. Mr. Bishop has been with GVEA since 1997. Daniel Heckman, Regulatory Manager, GVEA Daniel Heckman serves as the primary liaison between GVEA and federal and state regulatory agencies, primarily the Regulatory Commission of Alaska (RCA), as well as regulatory stakeholders statewide. In addition to his regulatory and compliance oversight responsibilities, he serves as GVEA’s primary representative on the Railbelt Reliability Council and as GVEA’s representative on the BPMC project team described in this application. He received bachelor’s degrees in political science and history from Southern Methodist University in 2010 and his juris doctor from the Gonzaga University School of Law in 2013. Combined with his prior experience at an investor-owned utility, Mr. Heckman has 10 years of experience in regulatory affairs. Chugach Electric Association, Inc. (CEA) Bruce Aspray, Manager of Transmission & Substation Engineering & Planning, CEA Bruce Aspray is a professional with experience in the industrial power and electrical utility industries. Mr. Aspray has specified, built, commissioned, and operated a combined cycle power plant as well as open air and GIS substations. He is a degreed and licensed Professional Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 20 electrical engineer in the State of Alaska. He is experienced in project management and construction of utility grade facilities including generation, transmission, substations, distribution, and renewables. Andrew Laughlin, Chief Operating Officer, CEA Andrew Laughlin is a professional with a diverse background in the power industry, specifically, power delivery project development, design, procurement, project management and construction. He is a licensed Professional electrical engineer with experience that includes construction of transmission and substation infrastructure as well as upgrading Static VAR Compensation, boiler controls and steam turbine generation systems. Mr. Laughlin has developed project teams for large and small complicated projects. Dustin Highers, Vice President Corporate Programs, CEA Dustin Highers is an electric utility professional with a background in power plant operations, maintenance, construction, commissioning, and engineering support. Mr. Highers’ industry experience includes 30 years in various industries including maritime, oil and gas, power plant construction and commissioning, gas turbine field engineering, and electric utility engineering and management. He is the leader of small and large teams in the execution of enterprise level projects to achieve corporate goals and objectives. Mr. Highers has demonstrated skill in complex program and project management for power generator maintenance and large generation construction projects. Matanuska Electric Association (MEA) Ed Jenkin, Chief Operations Officer, MEA Ed Jenkin is a licensed professional electrical engineer in the State of Alaska with more than 30 years of experience in the utility industry. He is presently the Chief Operations Officer for MEA. In this role he has oversight of MEA’s system planning, engineering, operations, technical services, and power system dispatch functions. Within the interconnected Alaska electric utility system Mr. Jenkin has led or worked on multiple collaborative efforts, including Railbelt electric reliability and cybersecurity standards development, joint asset management and operations, power pool formation between MEA and CEA, electric reliability organization legislation, and regulations on net-metering, regional planning, and standards enforcement. Mr. Jenkin graduated with a Bachelor of Science in Electrical Engineering from the University of Alaska, Fairbanks in 1984. He also has a Master of Arts in cross-cultural studies. Julie Estey, Senior Director of External Affairs and Strategic Initiatives, MEA Julie Estey is Senior Director at MEA, where she manages the cooperative’s public and member- facing activities along with strategic plans and special projects. She serves as MEA’s representative, past chair, and founding member of the Railbelt Reliability Council, the recently certificated electric reliability organization for the interconnected Railbelt grid. Before joining MEA, Ms. Estey was the Business Director for the Alaska Center for Energy and Power, an energy research group at the University of Alaska Fairbanks focused on improving how Alaskans generate and distribute power. She has experience managing public outreach and engagement Grid Resilience and Innovation Partnerships (GRIP) U.S. Department of Energy DE-FOA-0002740 Railbelt Innovation and Resiliency 21 for controversial transmission and generation capital projects as well as expertise bringing diverse groups of stakeholders together to develop common solutions. Brian Hickey, Executive Director, Railbelt Regional Coordination Brian Hickey is the Executive Director of Railbelt Regional Coordination, working for the CEOs of the five Railbelt electric utilities. He has more than 40 years of experience in electric power systems and telecommunications. His experience includes executive leadership and management, strategic business planning, economic alternative analysis, engineering, design, project management, and maintenance process development and implementation. Mr. Hickey has managed numerous generation, transmission, and process development and improvement projects in his career. He holds a Bachelor of Science in Electrical Engineering from Montana State University, a master’s certificate in Project Management from ESI/George Washington University, and a master’s degree in Global Finance from Alaska Pacific University. He is a licensed Professional Electrical Engineer and PMI Certified Project Management Professional. Homer Electric Association, Inc. (HEA) Keriann Baker, Director of Member Relations, HEA Keriann Baker, Director of Member Relations, oversees the utility’s customer service programs, public relations efforts, and legislative affairs. Ms. Baker practiced law with Reeves Amodio in Anchorage and Lewis, Longman & Walker in Palm Beach County, Florida, prior to joining HEA. She serves as vice chair of the South Peninsula Hospital, Inc., board and previously has served on numerous boards including several local/state chambers of commerce as well as state and national bar associations. Ms. Baker received a Bachelor of Science from Utah Valley University in Orem, Utah, and her juris doctorate from Loyola Chicago School of Law, in Chicago, IL. Larry Jorgensen, Director of Power, Fuels, & Dispatch, HEA Larry Jorgensen, Director of Power, Fuels & Dispatch, manages the operation and maintenance of HEA’s generation facilities, and generation dispatch. His skills include project design and management, advanced control systems, simulation and modeling, plant commissioning and startup, personnel training and advancement, and standards development. Mr. Jorgensen received an Associate in Applied Science in Power Plant Technology and Bachelor of Science in Energy Management, both from Bismarck State College in Bismarck, North Dakota. He has been with HEA since 2011. Bradley Lake Operator Report Page 1 Bradley Lake Operator Report BPMC January 2023 Unit Statistics: Generation Unit 1 (MWhrs) Unit 2 (MWhrs) Total (MWhrs) Nov. 2022 Dec. 2022 Jan. 2023* 17,862 23,914 13,843 13,685 21,065 11,819 31,547 44,979 25,662 Hydraulics Avg. Lake Level (ft.) Usage (ac ft.) Fish water (cfs) Nov. 2022 Dec. 2022 Jan. 2023* 1,168 1,159 1,148 1,517 2,741 1,412 63 44 44 Battle Creek Inflows to Bradley (ac ft.) Nov. 2022 Dec. 2022 Jan. 2023* 0 0 0 *Lake Level – 1,144.8’ As of Jan 16, 2023 Activities • Dam – Completed the monthly safety inspections. No issue to report. • Dam Access Road – Access to the dam is by snow machine. • Battle Creek Diversion – Closed for winter. • Bradley Lake new building and renovations. Bidding closed 4 December 2022. Out of the three prospective bidders we received only one bid. We are currently evaluating it. • Needle Valve Rebuild- Voith Hydro Inc. has completed a redesign for both the seals, piston rod and needle body. The new design has successfully been used at another hydro facility with comparable contaminate loading. The DHittle report has an estimated replacement cost of five million dollars per unit. • Fire system- RESPEC continues to submit documents for review on the project wide fire alarm system refresh. Bradley Lake Operator Report Page 2 • Safety- There have been no lost time or reportable accidents for the months of December 2022. o Next safety meeting is 13 Feb. 2023 • Barge trip – None scheduled. • Annual Maintenance Outage – no change from last report • Forced outage –None to report. • New Equipment– Mini Excavator and the Equipment trailer have been delivered to the project. • Contractors/ Visitors on site- o Randall Anderson – Apt. D remodel site visit. Bradley Lake Dam Bradley Lake Spillway Lake Level 1153.7- 28 Dec. 2022 Bradley Lake Operator Report Page 3 Fish Water Portal Road up to Battle Creek Diversion Diversion Tunnel Equipment Trailer On The Barge Bradley Lake Operator Report Page 4 New Equipment Trailer and Mini Excivator Alaska Energy Authority Bradley Lake Budget to Actual Expense Report 07/01/2022 to 12/31/2022 Page 1 of 12 FY21 FY21 FY22 FY22 FY23 FY23 BUDGET ACTUALS BUDGET ACTUALS BUDGET ACTUALS Replace/Automate Fish Water Valve Actuators                40,000                         ‐                            ‐                         ‐                            ‐                         ‐  Upgrade Crews Quarters and Residents Kitchen                10,000              10,375               139,000                7,318               159,000              42,674  Battle Creek Bridge Repair                           ‐           141,368                 80,000           112,337                           ‐                         ‐  UPS Replacement                37,000              34,438                            ‐                         ‐                           ‐                         ‐  IRIS Air Gap Monitoring System (computer)               45,000                         ‐                 45,000              86,805                65,000                         ‐  Replace Dump Truck and Sander              170,000           166,608                 20,000                         ‐                           ‐              29,493  KVM switch for Emerson                  3,000                         ‐                            ‐                         ‐                           ‐                         ‐  Spare Trash Pump                20,000                         ‐                            ‐                         ‐                           ‐                         ‐  Housing Preliminary Design                           ‐                         ‐                            ‐                         ‐                           ‐                         ‐  Emerson Cybersecurity Update              137,000           138,555                            ‐                         ‐                           ‐                         ‐  Heavy Duty trailer for equipment                           ‐                         ‐                 20,000                         ‐                20,000                         ‐  ABB Replace GIS Actuators                           ‐                         ‐               240,000                         ‐              309,000           238,263  Replacement pickup truck                           ‐                         ‐                 45,000                         ‐                           ‐              46,299  Needle Valve rebuild                           ‐                         ‐               150,000              29,727              150,000                         ‐  Start new servo design                           ‐                         ‐               100,000                         ‐              250,000                         ‐  Soldotna SVC Battery Replacement                           ‐                         ‐                 70,000                      76                           ‐                         ‐  North Fork Improvements                           ‐                         ‐                            ‐                         ‐                  5,000                         ‐  Mini Excavator                           ‐                         ‐                            ‐                         ‐              100,000                         ‐  Install New Bradley Microwave System                           ‐                         ‐                            ‐                         ‐               500,000                2,686  Total Non R&C Capital Purchases 462,000            491,344         909,000            236,264         1,558,000         359,414          BRADLEY LAKE  CAPITAL PURCHASES NOT FUNDED BY R&C FUND ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Schedule A Expenses for the period 07/01/22 to 12/31/22 Page 2 of 12 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2022 THROUGH 12/31/2022 FY 23 FY 22  FY23 Approved  Budget   BUDGET %   07/01/2022 ‐  12/31/2022  HEA Actual  CEA Actual  AEA Actual  Total Actual   (Over) Under  Budget to Date   FY22 Approved  Budget  FY22 Actual  Summary by expense type AIDEA Staff Professional Services (Direct) 277,000               138,500                ‐                        ‐                       27,846                 27,846                 110,654               274,000               212,299                AIDEA Support Staff (Indirect)‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        Labor & Benefits 1,315,796           657,898               413,555               17,778                 252,368               683,702               (25,804)               1,307,994           1,150,586            Travel 26,450                 13,225                 706                       ‐                       3,446                   4,152                   9,073                   38,450                 10,436                  Training 49,300                 24,650                 1,314                    ‐                        ‐                       1,314                   23,336                 49,300                 19,660                  Contractual 1,986,307           993,154               204,529                ‐                       130,794               335,323               657,831               1,156,343           1,069,547            Consulting‐Administrative 249,375               124,688                ‐                        ‐                       933                      933                      123,754                ‐                       1,636                    Supplies & Materials 311,232               155,616               29,481                  ‐                       6,940                   36,421                 119,195               429,345               213,468                Other Costs 67,318                 33,659                 14,278                 11,904                  ‐                       26,183                 7,476                   97,318                 63,178                  Equipment, Furniture and Machinery 24,000                 12,000                 1,230                    ‐                        ‐                       1,230                   10,770                 73,000                 5,084                    Administrative Costs 1,492,905           746,453               12,530                  ‐                       580,113               592,644               153,809               1,884,844           1,968,101            Indirect Costs 1,486,285           743,143               523,111                ‐                        ‐                       523,111               220,032               1,486,285           1,183,807            O&M 4% Allocation to Battle Creek (236,473)             (118,237)              ‐                        ‐                        ‐                        ‐                       (118,237)             (190,710)              ‐                        Total Bradley Lake Budget 7,049,495           3,524,748           1,200,734           29,683                 1,002,441           2,232,858           1,291,889           6,606,169           5,897,803            FERC 535 ‐ Operation Supervision & Engineering Operations Sup/Eng Bradley Lake Operating Labor & Benefits 108,311               54,155                 48,545                  ‐                        ‐                       48,545                 5,611                   107,604               92,562                  Travel 10,450                 5,225                   536                       ‐                        ‐                       536                      4,689                   10,450                 1,715                    Training 9,300                   4,650                    ‐                        ‐                        ‐                        ‐                       4,650                   9,300                   4,087                    Contractual 1,000                   500                       ‐                        ‐                        ‐                        ‐                       500                      11,000                  ‐                        Supplies & Materials 4,000                   2,000                    ‐                        ‐                        ‐                        ‐                       2,000                   4,000                   942                       Indirect Costs 155,698               77,849                 63,327                  ‐                        ‐                       63,327                 14,522                 155,698               127,416                Bradley Lake Operating Total 288,759               144,380               112,407                ‐                        ‐                       112,407               31,972                 298,052               226,723                FERC 535 ‐ Operation Supervision & Engineering Total 288,759              144,380              112,407               ‐                        ‐                       112,407              31,972                 298,052              226,723               FERC 537 ‐ Hydraulic Expenses Hydraulic Expenses Bradley Lake Operating Labor & Benefits 90,192                 45,096                 27,604                  ‐                        ‐                       27,604                 17,492                 84,192                 69,712                  Travel ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       8,000                   73                         Contractual 123,000               61,500                  ‐                        ‐                        ‐                        ‐                       61,500                 73,000                 5,803                    Supplies & Materials 32,000                 16,000                 397                       ‐                        ‐                       397                      15,603                 16,000                 471                       Equipment, Furniture and Machinery ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       39,000                  ‐                        Indirect Costs 114,320               57,160                 39,398                  ‐                        ‐                       39,398                 17,762                 114,320               93,656                  Bradley Lake Operating Total 359,512               179,756               67,399                  ‐                        ‐                       67,399                 112,357               334,512               169,715                FERC 537 ‐ Hydraulic Expenses Total 359,512              179,756              67,399                  ‐                        ‐                       67,399                 112,357              334,512              169,715               FERC 538 ‐ Electric Expenses Electric Expenses Bradley Lake Operating Labor & Benefits 218,044               109,022               79,859                  ‐                        ‐                       79,859                 29,163                 218,044               218,221                Travel 7,000                   3,500                   171                       ‐                        ‐                       171                      3,329                   7,000                   4,381                    Training 25,000                 12,500                 305                       ‐                        ‐                       305                      12,195                 25,000                 10,743                  Contractual 2,000                   1,000                    ‐                        ‐                        ‐                        ‐                       1,000                   5,000                    ‐                        Supplies & Materials 9,732                   4,866                    ‐                        ‐                        ‐                        ‐                       4,866                   42,732                 255                       Equipment, Furniture and Machinery ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       11,000                  ‐                        Administrative Costs ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       37,738                  Indirect Costs 262,004               131,002               95,403                  ‐                        ‐                       95,403                 35,599                 262,004               216,110                Bradley Lake Operating Total 523,780               261,890               175,737                ‐                        ‐                       175,737               86,153                 570,780               487,448                BRADLEY CIRCUITS/RADIO TO BERNICE LK BRADLEY CIRCUITS/RADIO TO BERNICE LK Total ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        FERC 538 ‐ Electric Expenses Total 523,780              261,890              175,737               ‐                        ‐                       175,737              86,153                 570,780              487,448               FERC 539 ‐ Misc. Hydraulic Power Generation Expenses Misc Hydro Power Exp Bradley Lake Operating Labor & Benefits 105,742               52,871                 34,691                  ‐                        ‐                       34,691                 18,180                 104,788               68,784                  Training 15,000                 7,500                   1,009                    ‐                        ‐                       1,009                   6,491                   15,000                 4,831                    Contractual 315,867               157,934               109,914                ‐                        ‐                       109,914               48,019                 287,525               228,838                Supplies & Materials 17,900                 8,950                   6,607                    ‐                        ‐                       6,607                   2,343                   17,900                 29,833                  Other Costs ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       (714)                      Indirect Costs 114,320               57,160                 45,144                  ‐                        ‐                       45,144                 12,016                 114,320               95,365                  Bradley Lake Operating Total 568,829               284,415               197,365                ‐                        ‐                       197,365               87,050                 539,533               426,937                BRADLEY CIRCUITS/RADIO TO BERNICE LK Other Costs 35,695                 17,848                 14,278                  ‐                        ‐                       14,278                 3,569                   35,695                 34,920                  BRADLEY CIRCUITS/RADIO TO BERNICE LK Total 35,695                 17,848                 14,278                  ‐                        ‐                       14,278                 3,569                   35,695                 34,920                  BRADLEY CIRCUITS BERNICE LK TO ANCH Other Costs 29,773                 14,887                  ‐                       11,904                  ‐                       11,904                 2,982                   29,773                 28,734                  BRADLEY CIRCUITS BERNICE LK TO ANCH Total 29,773                 14,887                  ‐                       11,904                  ‐                       11,904                 2,982                   29,773                 28,734                  FERC 539 ‐ Misc. Hydraulic Power Generation Expenses Total 634,297              317,149              211,643              11,904                  ‐                       223,547              93,601                 605,001              490,592               FERC 541 ‐ Maintenance Supervision & Engineering Maint Supervision/Eng Bradley Lake Operating Labor & Benefits 116,171               58,085                 45,415                  ‐                        ‐                       45,415                 12,670                 114,758               100,394                Indirect Costs 155,698               77,849                 63,327                  ‐                        ‐                       63,327                 14,522                 155,698               128,372                Bradley Lake Operating Total 271,869               135,935               108,742                ‐                        ‐                       108,742               27,192                 270,456               228,766                FERC 541 ‐ Maintenance Supervision & Engineering Total 271,869              135,935              108,742               ‐                        ‐                       108,742              27,192                 270,456              228,766               FERC 542 ‐ Maintenance of Structures Maintenance of Structures Bradley Lake Operating Labor & Benefits 86,639                 43,319                 25,127                  ‐                        ‐                       25,127                 18,192                 77,639                 62,589                  Contractual 56,000                 28,000                 27,208                  ‐                        ‐                       27,208                 792                      89,000                 62,009                  Supplies & Materials 94,000                 47,000                 2,557                    ‐                        ‐                       2,557                   44,443                 243,713               34,868                  Equipment, Furniture and Machinery 19,000                 9,500                   45                         ‐                        ‐                       45                        9,455                   23,000                 5,084                    Administrative Costs ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       6,741                    Page 3 of 12 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2022 THROUGH 12/31/2022 FY 23 FY 22  FY23 Approved  Budget   BUDGET %   07/01/2022 ‐  12/31/2022  HEA Actual  CEA Actual  AEA Actual  Total Actual   (Over) Under  Budget to Date   FY22 Approved  Budget  FY22 Actual  Indirect Costs 105,421               52,711                 35,934                  ‐                        ‐                       35,934                 16,777                 105,421               80,072                  Bradley Lake Operating Total 361,060               180,530               90,871                  ‐                        ‐                       90,871                 89,659                 538,773               251,363                FERC 542 ‐ Maintenance of Structures Total 361,060              180,530              90,871                  ‐                        ‐                       90,871                 89,659                 538,773              251,363               FERC 543 ‐ Maintenance of Reservoirs, Dams & Waterways Maint Res, Dams, WWays Bradley Lake Operating Labor & Benefits 53,744                 26,872                 625                       ‐                        ‐                       625                      26,247                 40,744                 431                       Travel 1,000                   500                       ‐                        ‐                        ‐                        ‐                       500                      5,000                    ‐                        Contractual 22,500                 11,250                  ‐                        ‐                        ‐                        ‐                       11,250                 6,500                    ‐                        Supplies & Materials 20,000                 10,000                  ‐                        ‐                        ‐                        ‐                       10,000                 15,000                  ‐                        Indirect Costs 56,689                 28,344                 287                       ‐                        ‐                       287                      28,057                 56,689                 501                       Bradley Lake Operating Total 153,933               76,967                 912                       ‐                        ‐                       912                      76,054                 123,933               932                       BRADLEY POWER TUNNEL MAINT (Dam) Contractual ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       15,000                  ‐                        BRADLEY POWER TUNNEL MAINT (Dam) Total ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       15,000                  ‐                        FERC 543 ‐ Maintenance of Reservoirs, Dams & Waterways Total 153,933              76,967                 912                       ‐                        ‐                       912                      76,054                 138,933              932                       FERC 544 ‐ Maintenance of Electric Plant Maintenance of Elec Plant Bradley Lake Operating Labor & Benefits 309,110               154,555               100,075                ‐                        ‐                       100,075               54,480                 309,110               258,335                Travel 4,500                   2,250                    ‐                        ‐                        ‐                        ‐                       2,250                   4,500                   376                       Contractual 58,000                 29,000                  ‐                        ‐                        ‐                        ‐                       29,000                 49,000                 104,828                Supplies & Materials 43,000                 21,500                 4,865                    ‐                        ‐                       4,865                   16,635                 30,000                 20,620                  Indirect Costs 423,178               211,589               143,061                ‐                        ‐                       143,061               68,527                 423,178               354,987                Bradley Lake Operating Total 837,788               418,894               248,002                ‐                        ‐                       248,002               170,892               815,788               739,147                FERC 544 ‐ Maintenance of Electric Plant Total 837,788              418,894              248,002               ‐                        ‐                       248,002              170,892              815,788              739,147               FERC 545 ‐ Maintenance of Misc. Hydraulic Plant Maint of Misc Hydr Plant Bradley Lake Operating Labor & Benefits 69,297                 34,649                 26,637                  ‐                        ‐                       26,637                 8,012                   69,297                 63,333                  Contractual 3,900                   1,950                   3,912                    ‐                        ‐                       3,912                   (1,962)                  3,900                    ‐                        Supplies & Materials 29,000                 14,500                 8,716                    ‐                        ‐                       8,716                   5,784                   34,000                 70,114                  Equipment, Furniture and Machinery 5,000                   2,500                   1,184                    ‐                        ‐                       1,184                   1,316                    ‐                        ‐                        Indirect Costs 98,957                 49,478                 37,230                  ‐                        ‐                       37,230                 12,249                 98,957                 87,328                  Bradley Lake Operating Total 206,154               103,077               77,679                  ‐                        ‐                       77,679                 25,398                 206,154               220,775                FERC 545 ‐ Maintenance of Misc. Hydraulic Plant Total 206,154              103,077              77,679                  ‐                        ‐                       77,679                 25,398                 206,154              220,775               FERC 556 ‐ System Control & Load Dispatching System Cntl & Load Disp Bradley Lake Operating Labor & Benefits 20,174                 10,087                 11,559                  ‐                        ‐                       11,559                 (1,472)                  19,708                 17,143                  Contractual 85,500                 42,750                 47,019                  ‐                        ‐                       47,019                 (4,269)                  53,000                 88,680                  Supplies & Materials 12,000                 6,000                   3,828                    ‐                        ‐                       3,828                   2,172                   6,000                   6,442                    Bradley Lake Operating Total 117,674               58,837                 62,406                  ‐                        ‐                       62,406                 (3,569)                  78,708                 112,264                 Snow Measurement Bradley Lake Operating Contractual 10,000                 5,000                    ‐                        ‐                        ‐                        ‐                       5,000                   10,000                 9,507                    Bradley Lake Operating Total 10,000                 5,000                    ‐                        ‐                        ‐                        ‐                       5,000                   10,000                 9,507                     Seismic Service Bradley Lake Operating Contractual 62,000                 31,000                  ‐                        ‐                       27,116                 27,116                 3,884                   62,000                 66,095                  Bradley Lake Operating Total 62,000                 31,000                  ‐                        ‐                       27,116                 27,116                 3,884                   62,000                 66,095                   Streamguaging Serv Bradley Lake Operating Contractual 218,000               109,000                ‐                        ‐                       48,296                 48,296                 60,704                 218,000               189,594                Bradley Lake Operating Total 218,000               109,000                ‐                        ‐                       48,296                 48,296                 60,704                 218,000               189,594                Permits Bradley Lake Operating Other Costs 350                      175                       ‐                        ‐                        ‐                        ‐                       175                      350                      238                       Bradley Lake Operating Total 350                      175                       ‐                        ‐                        ‐                        ‐                       175                      350                      238                       FERC 556 ‐ System Control & Load Dispatching Total 408,024              204,012              62,406                  ‐                       75,412                 137,818              66,194                 369,058              377,698               FERC 562 ‐ Station Expenses Station Expenses Bradley Lake Operating Labor & Benefits 98,418                 49,209                 11,515                 17,778                  ‐                       29,294                 19,915                 134,147               186,098                Travel 3,500                   1,750                    ‐                        ‐                        ‐                        ‐                       1,750                   3,500                   241                       Contractual 87,960                 43,980                 13,468                  ‐                        ‐                       13,468                 30,512                 61,600                 209,009                Supplies & Materials 44,600                 22,300                 2,510                    ‐                        ‐                       2,510                   19,790                 15,000                 49,923                  Other Costs 1,500                   750                       ‐                        ‐                        ‐                        ‐                       750                      31,500                  ‐                        Bradley Lake Operating Total 235,978               117,989               27,493                 17,778                  ‐                       45,272                 72,717                 245,747               445,271                FERC 562 ‐ Station Expenses Total 235,978              117,989              27,493                 17,778                  ‐                       45,272                 72,717                 245,747              445,271               FERC 571 ‐ Maintenance of Overhead Lines Maint of OH Lines Bradley Lake Operating Labor & Benefits 39,954                 19,977                 1,904                    ‐                        ‐                       1,904                   18,073                 27,963                 12,984                  Contractual 150,000               75,000                 3,008                    ‐                        ‐                       3,008                   71,992                 100,000               20,523                  Supplies & Materials 5,000                   2,500                    ‐                        ‐                        ‐                        ‐                       2,500                   5,000                    ‐                        Bradley Lake Operating Total 194,954               97,477                 4,913                    ‐                        ‐                       4,913                   92,564                 132,963               33,507                  FERC 571 ‐ Maintenance of Overhead Lines Total 194,954              97,477                 4,913                    ‐                        ‐                       4,913                   92,564                 132,963              33,507                  FERC 920 & 930 ‐ Administrative Expense AEA Bradley Fixed Admin Fees Bradley Lake Operating AIDEA Staff Professional Services (Direct) 277,000               138,500                ‐                        ‐                       26,524                 26,524                 111,976               274,000               212,299                Travel ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       3,650                    Consulting‐Administrative ‐                        ‐                        ‐                        ‐                       933                      933                      (933)                      ‐                       1,636                    Administrative Costs 2,500                   1,250                    ‐                        ‐                       39,502                 39,502                 (38,252)               2,500                   59,087                  Page 4 of 12 ALASKA ENERGY AUTHORITY BRADLEY LAKE OPERATIONS & MAINTENANCE SCHEDULE B BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2022 THROUGH 12/31/2022 FY 23 FY 22  FY23 Approved  Budget   BUDGET %   07/01/2022 ‐  12/31/2022  HEA Actual  CEA Actual  AEA Actual  Total Actual   (Over) Under  Budget to Date   FY22 Approved  Budget  FY22 Actual  Bradley Lake Operating Total 279,500               139,750                ‐                        ‐                       66,960                 66,960                 72,790                 276,500               276,672                Bradley Lake Bond Financing AIDEA Staff Professional Services (Direct)‐                        ‐                        ‐                        ‐                       1,322                   1,322                   (1,322)                   ‐                        ‐                        Bradley Lake Bond Financing Total ‐                        ‐                        ‐                        ‐                       1,322                   1,322                   (1,322)                   ‐                        ‐                        Bradley Battle Creek Diversion Bradley Battle Creek Diversion Total ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        Shared ‐ 100% AEA Bradley Lake Administrative Costs ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       69,726                  Shared ‐ 100% AEA Bradley Lake Total ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       69,726                  Operating Committee Exp‐Audit Bradley Lake Operating Administrative Costs 19,900                 9,950                    ‐                        ‐                       288                      288                      9,662                   19,900                 22,494                  Bradley Lake Operating Total 19,900                 9,950                    ‐                        ‐                       288                      288                      9,662                   19,900                 22,494                  Operating Committee Exp‐Legal Bradley Lake Operating Administrative Costs 70,000                 35,000                  ‐                        ‐                       72,925                 72,925                 (37,925)               70,000                 231,567                Bradley Lake Operating Total 70,000                 35,000                  ‐                        ‐                       72,925                 72,925                 (37,925)               70,000                 231,567                Operat Committee Exp‐Arbitrage Bradley Lake Operating Administrative Costs 5,000                   2,500                    ‐                        ‐                        ‐                        ‐                       2,500                   5,000                   33                         Bradley Lake Operating Total 5,000                   2,500                    ‐                        ‐                        ‐                        ‐                       2,500                   5,000                   33                         Trust & Account Fees Bradley Lake Operating Administrative Costs 13,000                 6,500                    ‐                        ‐                        ‐                        ‐                       6,500                   13,000                  ‐                        Bradley Lake Operating Total 13,000                 6,500                    ‐                        ‐                        ‐                        ‐                       6,500                   13,000                  ‐                        Misc Admin Bradley Lake Operating Administrative Costs 12,000                 6,000                    ‐                        ‐                       12,976                 12,976                 (6,976)                  12,000                 12,976                  Bradley Lake Operating Total 12,000                 6,000                    ‐                        ‐                       12,976                 12,976                 (6,976)                  12,000                 12,976                  Professional Consultants Bradley Lake Operating Labor & Benefits ‐                        ‐                        ‐                        ‐                       252,368               252,368               (252,368)              ‐                        ‐                        Travel ‐                        ‐                        ‐                        ‐                       3,446                   3,446                   (3,446)                   ‐                        ‐                        Contractual 790,580               395,290                ‐                        ‐                       55,382                 55,382                 339,908               111,818               84,662                  Supplies & Materials ‐                        ‐                        ‐                        ‐                       6,940                   6,940                   (6,940)                   ‐                        ‐                        Bradley Lake Operating Total 790,580               395,290                ‐                        ‐                       318,136               318,136               77,154                 111,818               84,662                  FERC 920 & 930 ‐ Administrative Expense Total 1,189,980           594,990               ‐                        ‐                       472,607              472,607              122,383              508,218              698,129               FERC 924 & 925 ‐ Insurance Premiums Insurance Premiums Bradley Lake Operating Administrative Costs 1,015,505           507,753               12,530                  ‐                       464,659               477,190               30,563                 1,382,444           1,187,246            Bradley Lake Operating Total 1,015,505           507,753               12,530                  ‐                       464,659               477,190               30,563                 1,382,444           1,187,246            Risk Management  Bradley Lake Operating Administrative Costs ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       25,000                  ‐                        Bradley Lake Operating Total ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       25,000                  ‐                        FERC 924 & 925 ‐ Insurance Premiums Total 1,015,505           507,753              12,530                  ‐                       464,659              477,190              30,563                 1,407,444           1,187,246            FERC 923 ‐ Outside Services Employed Outside Services Employed Bradley Lake Operating Consulting‐Administrative 249,375               124,688                ‐                        ‐                        ‐                        ‐                       124,688                ‐                        ‐                        Bradley Lake Operating Total 249,375               124,688                ‐                        ‐                        ‐                        ‐                       124,688                ‐                        ‐                        FERC 923 ‐ Outside Services Employed Total 249,375              124,688               ‐                        ‐                        ‐                        ‐                       124,688               ‐                        ‐                        FERC 928 ‐ Regulatory Commission Expenses FERC Admin Fees Bradley Lake Operating Administrative Costs 150,000               75,000                  ‐                        ‐                        ‐                        ‐                       75,000                 150,000               172,565                Bradley Lake Operating Total 150,000               75,000                  ‐                        ‐                        ‐                        ‐                       75,000                 150,000               172,565                FERC Related Prof Services BRADLEY FERC PART 12 INSPECTION Administrative Costs 25,000                 12,500                  ‐                        ‐                       (10,237)               (10,237)               22,737                 25,000                 57,905                  BRADLEY FERC PART 12 INSPECTION Total 25,000                 12,500                  ‐                        ‐                       (10,237)               (10,237)               22,737                 25,000                 57,905                  BRADLEY CONTRACTUAL ENGINEER‐FERC LICENSE ISSUES Administrative Costs 180,000               90,000                  ‐                        ‐                        ‐                        ‐                       90,000                 180,000               110,022                BRADLEY CONTRACTUAL ENGINEER‐FERC LICENSE ISSUES Total 180,000               90,000                  ‐                        ‐                        ‐                        ‐                       90,000                 180,000               110,022                FERC 928 ‐ Regulatory Commission Expenses Total 355,000              177,500               ‐                        ‐                       (10,237)               (10,237)               187,737              355,000              340,493               O&M 4% Allocation to Battle Creek (236,473)             (118,237)              ‐                        ‐                        ‐                        ‐                       (118,237)             (190,710)              ‐                        Total Bradley Lake Budget 7,049,495           3,524,748           1,200,734           29,683                 1,002,441           2,232,858           1,291,889           6,606,169           5,897,803            Page 5 of 12 Actual Projected Actual Projected Actual Projected @ 6/30/21 TO REPAY Budget @ 6/30/22 TO REPAY Budget @ 6/30/23 TO REPAY Budget Description Expense @6/30/21 FY21 Expense @6/30/22 FY22 Expense @6/30/23 FY23 R&C FUND PROJECTS Governor 0.00 4,052,070.14 0.00 4,052,070.14 0.00 0.00 4,052,070.14 0.00 Replace RFLS 0.00 251,092.69 0.00 251,092.69 0.00 0.00 251,092.69 0.00 Replace Runners 0.00 1,946,732.79 0.00 1,946,732.79 0.00 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 0.00 2,321,922.94 0.00 Replace power system stabilizer 0.00 619,205.10 0.00 619,205.10 0.00 0.00 619,205.10 0.00 Replace two RTUs 0.00 86,905.27 0.00 86,905.27 0.00 0.00 86,905.27 0.00 Culvert Repairs 0.00 675,966.79 0.00 675,966.79 0.00 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 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 0.00 1,344,683.05 0.00 Vibration Monitoring System 0.00 490.00 0.00 490.00 0.00 0.00 490.00 0.00 Fire Alarm System Replacement 64,452.15                  105,631.24 150,000.00 28,593.37 134,224.61 150,000.00 2,392.50 136,617.11 1,500,000.00 Battle Creek Diversion 0.00 1,170,000.00 0.00 1,170,000.00 0.00 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 0.00 1,277,197.06 0.00 Fishwater Screen Debris Removal 0.00 312,236.43 0.00 312,236.43 0.00 0.00 312,236.43 0.00 Turbine Nozzel Repair 0.00 1,428,861.07 0.00 1,428,861.07 0.00 0.00 1,428,861.07 0.00 Spillway Raise 0.00 0.00 0.00 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 0.00 8,517,991.11 0.00 Equipment Storage Shed 0.00 510,550.13 0.00 510,550.13 0.00 0.00 510,550.13 0.00 Emerson Operating System Upgrade 0.00 622,665.00 0.00 622,665.00 0.00 0.00 622,665.00 0.00 Generator #2 Replacement 0.00 953,212.71 0.00 953,212.71 0.00 0.00 953,212.71 0.00 Road Grader 0.00 0.00 370,000.00 342,330.00 342,330.00 0.00 0.00 342,330.00 0.00 Battle Creek Construction 3,739,590.93 3,739,590.93 3,666,000.00 0.00 3,739,590.93 0.00 0.00 3,739,590.93 0.00 Battle Creek Cash Call‐Expended 750,000.00 750,000.00 750,000.00 0.00 750,000.00 0.00 0.00 750,000.00 0.00 Battle Creek Cash Call‐Paid by Utilities (750,000.00) (750,000.00) (750,000.00) 0.00 (750,000.00) 0.00 0.00 (750,000.00) 0.00 Needle Repairs 1,482,791.23 1,482,791.23 1,500,000.00 0.00 1,482,791.23 0.00 0.00 1,482,791.23 0.00 Construct Additional Residence 0.00 0.00 69,593.86 69,593.86 980,000.00 38,749.58 108,343.44 0.00 Spillway Raise & Expansion Project 0.00 0.00 547,699.29 547,699.29 800,000.00 392,102.47 939,801.76 1,500,000.00 5,286,834.31 32,307,392.30 5,686,000.00 988,216.52 33,295,608.82 1,930,000.00 433,244.55 33,728,853.37 3,000,000.00 Current Year R&C Repayment (2,209,060.11) (2,435,902.00) (2,757,013.00) Adjust balance to $5 million 0.00 0.00 0.00 Interest  in Fund Applied to Repayment (269,487.40) (42,921.43) (6,421.82) Net Transfer from Revenue Fund (2,478,547.51) (2,478,823.43) (2,763,434.82) Cumulative Prior Years  R&C Repayments (25,518,390.50) (27,707,352.30) (29,808,016.74) Due to (from) Utilities 289,585.71 378,158.99 983,348.44 Adjust Due to R&C Actual 0.00 0.00 0.00 (25,228,804.79) (27,329,193.31) (28,824,668.30) NET DUE TO R&C FUND 4,600,040.00 3,487,592.08 2,140,750.25 R&C FUND CASH FLOW PROJECTION Beginning Investment Balance 3,922,231.19 1,069,522.90 2,363,807.74 Disbursements‐current year ‐Accrual (4,906,857.12) (514,975.69) 0.00 Disbursements‐prior year accrued (406,104.23) (379,977.19) (473,240.83) Utilities' R&C Refund (18,294.45) (289,585.71) (378,158.99) Net other cash inflow(outflow)0.00 0.00 0.00 Current year interest earnings 269,487.40 42,921.43 6,421.82 Participants Contributions to R&C Fund 2,209,060.11 2,435,902.00 2,757,013.00 Ending Investment Balance 1,069,522.90 2,363,807.74 4,275,842.74 Accrued Due to (from) Utilities (289,585.71) (378,158.99) (983,348.44) R&C payable back to the revenue fund 0.00 0.00 0.00 Accrued R&C vendor Payable at Year End (379,977.19) (473,240.83) (433,244.55) PROJECTED NET DUE + ENDING INVESTMENT BALANCE 5,000,000.00 5,000,000.00 5,000,000.00 REPAYMENT AMOUNT $1,649,677 X 25% $4,139,810 X 25% $238,606.15 X 25% $954,181.79 x 25% $756,665.11 x 25% all 4 years $1,455,830.05 x 25% all 4 years $1,401,948.53 x 25% all 4 years $1,834,499.92 x 25% yr 1 | 25% yr 2 | 50% yr 3 $3,330,802.80 x 25% yr 1 | 32% yr 2 | 25% yr 3 |18% yr4 $5,644,193.08 x 25% all 4 years $1,341,405.96 x 25% all 4 years (FY18) 4th 335,351.49 $1,715,556.80 x 25% all 4 years (FY19) 3rd 428,889.20 4th 428,889.20 $412,050.13 x 25% all 4 years (FY20) 2nd 103,012.53 3rd 103,012.53 4th 103,012.53 $5,286,834.31 x 25% all 4 years (FY21) 1st 1,321,708.58 2nd 1,321,708.58 3rd 1,321,708.58 FY22 ACTUALS 1st 247,054.13 2nd 247,054.13 1st 108,311.14 2,188,961.80 2,100,664.44 1,780,086.38 BRADLEY LAKE R&C FUND DISBURSEMENTS AND REPAYMENTS SCHEDULE D Expenses for the period 07/01/22 to 12/31/22 Page 6 of 12 FY21 FY21 FY22 FY22 FY23 FY23 Budget Actual Budget Actual Budget Actual Battle Creek Diversion                 320,000                   7,913                              ‐                           ‐                              ‐                           ‐  Battle Creek Associated Costs                             ‐                           ‐                    15,000                 22,196                    15,000                   7,482  Vent Enlargment                              ‐                           ‐                    50,000                 13,077                    50,000                 32,182  Pressure Sensor w SCADA                              ‐                           ‐                    25,000                   2,807                    25,000                      168  Power feed to LBC Bridge                             ‐                           ‐                    25,000                 19,548                              ‐                           ‐  Total Non R&C Capital Purchases 320,000               7,913                115,000               57,628              90,000                 39,832               BATTLE CREEK CAPITAL PURCHASES NOT FUNDED BY R&C FUND ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Battle Creek Capital Purchases Schedule E Expenses for the period 07/01/22 to 12/31/22 Page 7 of 12 BATTLE CREEK OPERATIONS & MAINTENANCE SCHEDULE F BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2022 THROUGH 12/31/2022 FY 23 FY 22  FY23 Approved  Budget   BUDGET %   07/01/2022 ‐  12/31/2022  HEA Actual  CEA Actual  AEA Actual  Total Actual   (Over) Under  Budget to Date   FY22 Approved  Budget  FY22 Actual  Summary by expense type Direct Purchases/Travel ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        AIDEA Staff Professional Services (Direct)‐                        ‐                        ‐                        ‐                       1,279                   1,279                   (1,279)                  71,000                 26,505                  AIDEA Support Staff (Indirect)‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        Labor & Benefits ‐                        ‐                       17,231                 741                      10,515                 28,488                 (28,488)                ‐                       48,457                  Travel ‐                        ‐                       29                         ‐                       144                      173                      (173)                      ‐                       358                       Training ‐                        ‐                       55                         ‐                        ‐                       55                        (55)                        ‐                       682                       Contractual 126,000               63,000                 8,522                    ‐                       19,700                 28,222                 34,778                 126,000               149,484                Consulting‐Administrative ‐                        ‐                        ‐                        ‐                       39                        39                        (39)                        ‐                       60                         Supplies & Materials ‐                        ‐                       1,228                    ‐                       289                      1,518                   (1,518)                   ‐                       9,628                    Other Costs ‐                        ‐                       595                      496                       ‐                       1,091                   (1,091)                   ‐                       2,376                    Equipment, Furniture and Machinery ‐                        ‐                       51                         ‐                        ‐                       51                        (51)                        ‐                       239                       Administrative Costs 54,900                 27,450                 522                       ‐                       24,419                 24,941                 2,509                   11,900                 131,166                Indirect Costs ‐                        ‐                       21,796                  ‐                        ‐                       21,796                 (21,796)                ‐                       50,826                  O&M 4% Allocation to Battle Creek 236,473               118,237                ‐                        ‐                        ‐                        ‐                       118,237               190,710                ‐                        Total Battle Creek Budget 417,373              208,687              50,031                 1,237                   56,385                 107,652              101,034              399,610              419,780               FERC 535 ‐ Operation Supervision & Engineering Operations Sup/Eng Battle Creek Operating Labor & Benefits ‐                        ‐                       2,023                    ‐                        ‐                       2,023                   (2,023)                   ‐                       3,989                    Travel ‐                        ‐                       22                         ‐                        ‐                       22                        (22)                        ‐                       77                         Training ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       192                       Supplies & Materials ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       44                         Indirect Costs ‐                        ‐                       2,639                    ‐                        ‐                       2,639                   (2,639)                   ‐                       5,485                    Battle Creek Operating Total ‐                        ‐                       4,684                    ‐                        ‐                       4,684                   (4,684)                   ‐                       9,788                    FERC 535 ‐ Operation Supervision & Engineering Total ‐                        ‐                       4,684                    ‐                        ‐                       4,684                   (4,684)                  ‐                       9,788                    FERC 537 ‐ Hydraulic Expenses Hydraulic Expenses Battle Creek Operating Labor & Benefits ‐                        ‐                       1,150                    ‐                        ‐                       1,150                   (1,150)                   ‐                       3,019                    Travel ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       3                            Contractual 81,000                 40,500                  ‐                        ‐                        ‐                        ‐                       40,500                 81,000                 66,287                  Supplies & Materials ‐                        ‐                       17                         ‐                        ‐                       17                        (17)                        ‐                       22                         Indirect Costs ‐                        ‐                       1,642                    ‐                        ‐                       1,642                   (1,642)                   ‐                       4,014                    Battle Creek Operating Total 81,000                 40,500                 2,808                    ‐                        ‐                       2,808                   37,692                 81,000                 73,345                  FERC 537 ‐ Hydraulic Expenses Total 81,000                 40,500                 2,808                    ‐                        ‐                       2,808                   37,692                 81,000                 73,345                  FERC 538 ‐ Electric Expenses Electric Expenses BRADLEY CIRCUITS/RADIO TO BERNICE LK BRADLEY CIRCUITS/RADIO TO BERNICE LK Total ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        Battle Creek Operating Labor & Benefits ‐                        ‐                       3,327                    ‐                        ‐                       3,327                   (3,327)                   ‐                       9,566                    Travel ‐                        ‐                       7                            ‐                        ‐                       7                           (7)                          ‐                       206                       Training ‐                        ‐                       13                         ‐                        ‐                       13                        (13)                        ‐                       461                       Supplies & Materials ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       2                            Administrative Costs ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       1,776                    Indirect Costs ‐                        ‐                       3,975                    ‐                        ‐                       3,975                   (3,975)                   ‐                       9,271                    Battle Creek Operating Total ‐                        ‐                       7,322                    ‐                        ‐                       7,322                   (7,322)                   ‐                       21,282                  FERC 538 ‐ Electric Expenses Total ‐                        ‐                       7,322                    ‐                        ‐                       7,322                   (7,322)                  ‐                       21,282                  FERC 539 ‐ Misc. Hydraulic Power Generation Expenses Misc Hydro Power Exp BRADLEY CIRCUITS/RADIO TO BERNICE LK Other Costs ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       538                       BRADLEY CIRCUITS/RADIO TO BERNICE LK Total ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       538                       BRADLEY CIRCUITS BERNICE LK TO ANCH Other Costs ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       84                         BRADLEY CIRCUITS BERNICE LK TO ANCH Total ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       84                         Battle Creek Operating Labor & Benefits ‐                        ‐                       1,445                    ‐                        ‐                       1,445                   (1,445)                   ‐                       2,952                    Training ‐                        ‐                       42                         ‐                        ‐                       42                        (42)                        ‐                       28                         Contractual ‐                        ‐                       4,580                    ‐                        ‐                       4,580                   (4,580)                   ‐                       9,860                    Supplies & Materials ‐                        ‐                       275                       ‐                        ‐                       275                      (275)                      ‐                       1,288                    Other Costs ‐                        ‐                       595                      496                       ‐                       1,091                   (1,091)                   ‐                       1,742                    Indirect Costs ‐                        ‐                       1,881                    ‐                        ‐                       1,881                   (1,881)                   ‐                       4,044                    Battle Creek Operating Total ‐                        ‐                       8,818                   496                       ‐                       9,314                   (9,314)                   ‐                       19,915                  FERC 539 ‐ Misc. Hydraulic Power Generation Expenses Total ‐                        ‐                       8,818                   496                       ‐                       9,314                   (9,314)                  ‐                       20,537                  FERC 541 ‐ Maintenance Supervision & Engineering Maint Supervision/Eng Battle Creek Operating Labor & Benefits ‐                        ‐                       1,892                    ‐                        ‐                       1,892                   (1,892)                   ‐                       4,358                    Indirect Costs ‐                        ‐                       2,639                    ‐                        ‐                       2,639                   (2,639)                   ‐                       5,530                    Battle Creek Operating Total ‐                        ‐                       4,531                    ‐                        ‐                       4,531                   (4,531)                   ‐                       9,888                    FERC 541 ‐ Maintenance Supervision & Engineering Total ‐                        ‐                       4,531                    ‐                        ‐                       4,531                   (4,531)                  ‐                       9,888                    FERC 542 ‐ Maintenance of Structures Maintenance of Structures Battle Creek Operating Labor & Benefits ‐                        ‐                       1,047                    ‐                        ‐                       1,047                   (1,047)                   ‐                       2,721                    Contractual ‐                        ‐                       1,134                    ‐                        ‐                       1,134                   (1,134)                   ‐                       2,715                    Supplies & Materials ‐                        ‐                       107                       ‐                        ‐                       107                      (107)                      ‐                       1,604                    Equipment, Furniture and Machinery ‐                        ‐                       2                            ‐                        ‐                       2                           (2)                          ‐                       239                       Administrative Costs ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       317                       Indirect Costs ‐                        ‐                       1,497                    ‐                        ‐                       1,497                   (1,497)                   ‐                       3,419                    Battle Creek Operating Total ‐                        ‐                       3,786                    ‐                        ‐                       3,786                   (3,786)                   ‐                       11,015                  FERC 542 ‐ Maintenance of Structures Total ‐                        ‐                       3,786                    ‐                        ‐                       3,786                   (3,786)                  ‐                       11,015                  FERC 543 ‐ Maintenance of Reservoirs, Dams & Waterways ALASKA ENERGY AUTHORITY Page 8 of 12 BATTLE CREEK OPERATIONS & MAINTENANCE SCHEDULE F BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2022 THROUGH 12/31/2022 FY 23 FY 22  FY23 Approved  Budget   BUDGET %   07/01/2022 ‐  12/31/2022  HEA Actual  CEA Actual  AEA Actual  Total Actual   (Over) Under  Budget to Date   FY22 Approved  Budget  FY22 Actual  ALASKA ENERGY AUTHORITY Maint Res, Dams, WWays Battle Creek Operating Labor & Benefits ‐                        ‐                       26                         ‐                        ‐                       26                        (26)                        ‐                       20                         Indirect Costs ‐                        ‐                       12                         ‐                        ‐                       12                        (12)                        ‐                       24                         Battle Creek Operating Total ‐                        ‐                       38                         ‐                        ‐                       38                        (38)                        ‐                       44                         FERC 543 ‐ Maintenance of Reservoirs, Dams & Waterways Total ‐                        ‐                       38                         ‐                        ‐                       38                        (38)                        ‐                       44                         FERC 544 ‐ Maintenance of Electric Plant Maintenance of Elec Plant Battle Creek Operating Labor & Benefits ‐                        ‐                       4,170                    ‐                        ‐                       4,170                   (4,170)                   ‐                       11,246                  Travel ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       18                         Contractual ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       4,839                    Supplies & Materials ‐                        ‐                       203                       ‐                        ‐                       203                      (203)                      ‐                       906                       Indirect Costs ‐                        ‐                       5,961                    ‐                        ‐                       5,961                   (5,961)                   ‐                       15,296                  Battle Creek Operating Total ‐                        ‐                       10,333                  ‐                        ‐                       10,333                 (10,333)                ‐                       32,304                  FERC 544 ‐ Maintenance of Electric Plant Total ‐                        ‐                       10,333                  ‐                        ‐                       10,333                 (10,333)                ‐                       32,304                  FERC 545 ‐ Maintenance of Misc. Hydraulic Plant Maint of Misc Hydr Plant Battle Creek Operating Labor & Benefits ‐                        ‐                       1,110                    ‐                        ‐                       1,110                   (1,110)                   ‐                       2,736                    Contractual ‐                        ‐                       163                       ‐                        ‐                       163                      (163)                      ‐                        ‐                        Supplies & Materials ‐                        ‐                       363                       ‐                        ‐                       363                      (363)                      ‐                       3,188                    Equipment, Furniture and Machinery ‐                        ‐                       49                         ‐                        ‐                       49                        (49)                        ‐                        ‐                        Indirect Costs ‐                        ‐                       1,551                    ‐                        ‐                       1,551                   (1,551)                   ‐                       3,744                    Battle Creek Operating Total ‐                        ‐                       3,237                    ‐                        ‐                       3,237                   (3,237)                   ‐                       9,668                    FERC 545 ‐ Maintenance of Misc. Hydraulic Plant Total ‐                        ‐                       3,237                    ‐                        ‐                       3,237                   (3,237)                  ‐                       9,668                    FERC 556 ‐ System Control & Load Dispatching System Cntl & Load Disp Battle Creek Operating Labor & Benefits ‐                        ‐                       482                       ‐                        ‐                       482                      (482)                      ‐                       542                       Contractual ‐                        ‐                       1,959                    ‐                        ‐                       1,959                   (1,959)                   ‐                       4,166                    Supplies & Materials ‐                        ‐                       160                       ‐                        ‐                       160                      (160)                      ‐                       303                       Battle Creek Operating Total ‐                        ‐                       2,600                    ‐                        ‐                       2,600                   (2,600)                   ‐                       5,011                     Snow Measurement Battle Creek Operating Contractual ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       493                       Battle Creek Operating Total ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       493                        Seismic Service Battle Creek Operating Contractual ‐                        ‐                        ‐                        ‐                       1,130                   1,130                   (1,130)                   ‐                       2,147                    Battle Creek Operating Total ‐                        ‐                        ‐                        ‐                       1,130                   1,130                   (1,130)                   ‐                       2,147                     Streamguaging Serv Battle Creek Operating Contractual 45,000                 22,500                  ‐                        ‐                       16,262                 16,262                 6,238                   45,000                 52,793                  Battle Creek Operating Total 45,000                 22,500                  ‐                        ‐                       16,262                 16,262                 6,238                   45,000                 52,793                  Permits Battle Creek Operating Other Costs ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       12                         Battle Creek Operating Total ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       12                         FERC 556 ‐ System Control & Load Dispatching Total 45,000                 22,500                 2,600                    ‐                       17,392                 19,992                 2,508                   45,000                 60,457                  FERC 562 ‐ Station Expenses Station Expenses Battle Creek Operating Labor & Benefits ‐                        ‐                       480                      741                       ‐                       1,221                   (1,221)                   ‐                       7,242                    Travel ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       11                         Contractual ‐                        ‐                       561                       ‐                        ‐                       561                      (561)                      ‐                       5,338                    Supplies & Materials ‐                        ‐                       105                       ‐                        ‐                       105                      (105)                      ‐                       2,271                    Battle Creek Operating Total ‐                        ‐                       1,146                   741                       ‐                       1,886                   (1,886)                   ‐                       14,862                  FERC 562 ‐ Station Expenses Total ‐                        ‐                       1,146                   741                       ‐                       1,886                   (1,886)                  ‐                       14,862                  FERC 571 ‐ Maintenance of Overhead Lines Maint of OH Lines Battle Creek Operating Labor & Benefits ‐                        ‐                       79                         ‐                        ‐                       79                        (79)                        ‐                       67                         Contractual ‐                        ‐                       125                       ‐                        ‐                       125                      (125)                      ‐                       106                       Battle Creek Operating Total ‐                        ‐                       205                       ‐                        ‐                       205                      (205)                      ‐                       174                       FERC 571 ‐ Maintenance of Overhead Lines Total ‐                        ‐                       205                       ‐                        ‐                       205                      (205)                      ‐                       174                       FERC 920 & 930 ‐ Administrative Expense AEA Bradley Fixed Admin Fees Bradley Lake Operating Bradley Lake Operating Total ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        Battle Creek Operating AIDEA Staff Professional Services (Direct)‐                        ‐                        ‐                        ‐                       1,279                   1,279                   (1,279)                  71,000                 26,505                  Travel ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       42                         Consulting‐Administrative ‐                        ‐                        ‐                        ‐                       39                        39                        (39)                        ‐                       60                         Administrative Costs 43,000                 21,500                  ‐                        ‐                       1,894                   1,894                   19,606                  ‐                       30,409                  Battle Creek Operating Total 43,000                 21,500                  ‐                        ‐                       3,212                   3,212                   18,288                 71,000                 57,016                  Shared ‐ 100% AEA Bradley Lake Administrative Costs ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       681                       Shared ‐ 100% AEA Bradley Lake Total ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       681                       Shared ‐ 100% AEA Battle Creek Administrative Costs ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       9,533                    Shared ‐ 100% AEA Battle Creek Total ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       9,533                    Operating Committee Exp‐Audit Battle Creek Operating Administrative Costs ‐                        ‐                        ‐                        ‐                       12                        12                        (12)                        ‐                       1,166                    Battle Creek Operating Total ‐                        ‐                        ‐                        ‐                       12                        12                        (12)                        ‐                       1,166                    Page 9 of 12 BATTLE CREEK OPERATIONS & MAINTENANCE SCHEDULE F BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2022 THROUGH 12/31/2022 FY 23 FY 22  FY23 Approved  Budget   BUDGET %   07/01/2022 ‐  12/31/2022  HEA Actual  CEA Actual  AEA Actual  Total Actual   (Over) Under  Budget to Date   FY22 Approved  Budget  FY22 Actual  ALASKA ENERGY AUTHORITY Operating Committee Exp‐Legal Bradley Battle Creek Diversion Administrative Costs ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       133                       Bradley Battle Creek Diversion Total ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       133                       Battle Creek Operating Administrative Costs 5,000                   2,500                    ‐                        ‐                       3,039                   3,039                   (539)                     5,000                   17,373                  Battle Creek Operating Total 5,000                   2,500                    ‐                        ‐                       3,039                   3,039                   (539)                     5,000                   17,373                  Operat Committee Exp‐Arbitrage Battle Creek Operating Administrative Costs 2,000                   1,000                    ‐                        ‐                        ‐                        ‐                       1,000                   2,000                   1,692                    Battle Creek Operating Total 2,000                   1,000                    ‐                        ‐                        ‐                        ‐                       1,000                   2,000                   1,692                    Trust & Account Fees Bradley Battle Creek Diversion Bradley Battle Creek Diversion Total ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        Battle Creek Operating Administrative Costs 4,800                   2,400                    ‐                        ‐                        ‐                        ‐                       2,400                   4,800                   4,058                    Battle Creek Operating Total 4,800                   2,400                    ‐                        ‐                        ‐                        ‐                       2,400                   4,800                   4,058                    Misc Admin Battle Creek Operating Administrative Costs 100                      50                         ‐                        ‐                       541                      541                      (491)                     100                      654                       Battle Creek Operating Total 100                      50                         ‐                        ‐                       541                      541                      (491)                     100                      654                       Professional Consultants Bradley Lake Operating Bradley Lake Operating Total ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        Battle Creek Operating Labor & Benefits ‐                        ‐                        ‐                        ‐                       10,515                 10,515                 (10,515)                ‐                        ‐                        Travel ‐                        ‐                        ‐                        ‐                       144                      144                      (144)                      ‐                        ‐                        Contractual ‐                        ‐                        ‐                        ‐                       2,308                   2,308                   (2,308)                   ‐                       739                       Supplies & Materials ‐                        ‐                        ‐                        ‐                       289                      289                      (289)                      ‐                        ‐                        Battle Creek Operating Total ‐                        ‐                        ‐                        ‐                       13,256                 13,256                 (13,256)                ‐                       739                       FERC 920 & 930 ‐ Administrative Expense Total 54,900                 27,450                  ‐                        ‐                       20,059                 20,059                 7,391                   82,900                 93,044                  FERC 924 & 925 ‐ Insurance Premiums Insurance Premiums Battle Creek Operating Administrative Costs ‐                        ‐                       522                       ‐                       19,361                 19,883                 (19,883)                ‐                       56,628                  Battle Creek Operating Total ‐                        ‐                       522                       ‐                       19,361                 19,883                 (19,883)                ‐                       56,628                  FERC 924 & 925 ‐ Insurance Premiums Total ‐                        ‐                       522                       ‐                       19,361                 19,883                 (19,883)                ‐                       56,628                  FERC 928 ‐ Regulatory Commission Expenses FERC Admin Fees Battle Creek Operating Administrative Costs ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       1,685                    Battle Creek Operating Total ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       1,685                    FERC Related Prof Services BRADLEY FERC PART 12 INSPECTION Administrative Costs ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       566                       BRADLEY FERC PART 12 INSPECTION Total ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       566                       BRADLEY CONTRACTUAL ENGINEER‐FERC LICENSE ISSUES Administrative Costs ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       1,075                    BRADLEY CONTRACTUAL ENGINEER‐FERC LICENSE ISSUES Total ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       1,075                    Battle Creek Operating Administrative Costs ‐                        ‐                        ‐                        ‐                       (427)                     (427)                     427                       ‐                       3,419                    Battle Creek Operating Total ‐                        ‐                        ‐                        ‐                       (427)                     (427)                     427                       ‐                       3,419                    FERC 928 ‐ Regulatory Commission Expenses Total ‐                        ‐                        ‐                        ‐                       (427)                     (427)                     427                       ‐                       6,745                    O&M Allocation to Battle Creek 236,473              118,237               ‐                        ‐                        ‐                        ‐                       118,237              190,710               ‐                        Total Battle Creek Budget 417,373              208,687              50,031                 1,237                   56,385                 107,652              101,034              399,610              419,780               Page 10 of 12 FY21 FY21 FY22 FY22 FY23 FY23 Amended Amended Amended Budget Actuals Budget Actuals Budget Actuals SSQ Line Access Documentation               150,000                    3,127                             ‐                144,482                             ‐                  23,555  SSQ Line Acquisition Costs                 40,000                  46,029                             ‐                    2,026                             ‐                             ‐  SSQ Soldotna‐Qtz Ck 230kV Construction                            ‐                             ‐                750,000                  91,051                             ‐                  94,285  SSQ Line Due Diligence Inspect/Repair O/S Fire ZNE                            ‐                             ‐                             ‐                    2,350                             ‐                             ‐  SSQ Line ‐ 69kV Remediation                            ‐                             ‐                             ‐                  10,581                             ‐                    1,657  Total Non R&C Capital Purchases 190,000             49,156               750,000             250,489              ‐                          119,497              SSQ LINE CAPITAL PURCHASES NOT FUNDED BY R&C FUND Expenses for the period 07/01/22 to 12/31/22 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT SSQ Line Capital Purchases Schedule H Page 11 of 12 ALASKA ENERGY AUTHORITY SSQ LINE OPERATIONS & MAINTENANCE SCHEDULE I BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2022 THROUGH 12/31/2022 FY 23 FY 22  FY23 Approved  Budget   BUDGET %   07/01/2022 ‐  12/31/2022  HEA Actual  CEA Actual  AEA Actual  Total Actual   (Over) Under  Budget to Date   FY22 Approved  Budget  FY22 Actual  Summary by expense type AIDEA Staff Professional Services (Direct)‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                        42,000                 8,473                     AIDEA Support Staff (Indirect)‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         Labor & Benefits 56,999                 28,500                  ‐                         ‐                         ‐                         ‐                        28,500                 85,820                 5,158                     Travel ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                        404                        Contractual 200,000               100,000                ‐                         ‐                         ‐                         ‐                        100,000               250,000               182,178                Permitting ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                        2,848                     Supplies & Materials 25,000                 12,500                  ‐                         ‐                         ‐                         ‐                        12,500                 56,992                 1,561                     Other Costs ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                        7,711                    1,250                     Administrative Costs 55,000                 27,500                  ‐                         ‐                        628                       628                       26,872                 2,000                    66,128                  Total SSQ Line Budget 336,999               168,500                ‐                         ‐                        628                       628                       167,872               444,523               268,001                FERC 540 ‐ Rents FERC Land Use Fee SSQ Line Operating Other Costs ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                        1,250                     SSQ Line Operating Total ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                        1,250                     FERC 540 ‐ Rents Total ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                        1,250                    FERC 556 ‐ System Control & Load Dispatching Permits SSQ Line Operating Permitting ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                        2,848                     SSQ Line Operating Total ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                        2,848                     FERC 556 ‐ System Control & Load Dispatching Total ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                        2,848                    FERC 571 ‐ Maintenance of Overhead Lines Maint of OH Lines SSQ Line Operating Labor & Benefits 56,999                 28,500                  ‐                         ‐                         ‐                         ‐                        28,500                 85,820                 5,158                     Travel ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                        404                        Contractual 200,000               100,000                ‐                         ‐                         ‐                         ‐                        100,000               250,000               182,178                Supplies & Materials 25,000                 12,500                  ‐                         ‐                         ‐                         ‐                        12,500                 56,992                 1,561                     Other Costs ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                        7,711                     ‐                         SSQ Line Operating Total 281,999               141,000                ‐                         ‐                         ‐                         ‐                        141,000               400,523               189,301                FERC 571 ‐ Maintenance of Overhead Lines Total 281,999               141,000                ‐                         ‐                         ‐                         ‐                        141,000               400,523               189,301                FERC 920 & 930 ‐ Administrative Expense AEA Bradley Fixed Admin Fees SSQ Capital Acquisition SSQ Capital Acquisition Total ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         SSQ Line Operating AIDEA Staff Professional Services (Direct)‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                        42,000                 8,473                     Administrative Costs 53,000                 26,500                  ‐                         ‐                        628                       628                       25,872                  ‐                        39,776                  SSQ Line Operating Total 53,000                 26,500                  ‐                         ‐                        628                       628                       25,872                 42,000                 48,250                  Shared ‐ 100% AEA SQ Line Administrative Costs ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                        2,310                     Shared ‐ 100% AEA SQ Line Total ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                        2,310                     Shared ‐ 100% AEA Audit Shared ‐ 100% AEA Audit Total ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         Operating Committee Exp‐Legal SSQ Line Operating Administrative Costs ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                        22,042                  SSQ Line Operating Total ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                        22,042                  Trust & Account Fees SSQ Line Operating Administrative Costs 2,000                    1,000                     ‐                         ‐                         ‐                         ‐                        1,000                    2,000                    2,000                     SSQ Line Operating Total 2,000                    1,000                     ‐                         ‐                         ‐                         ‐                        1,000                    2,000                    2,000                     FERC 920 & 930 ‐ Administrative Expense Total 55,000                 27,500                  ‐                         ‐                        628                       628                       26,872                 44,000                 74,602                  FERC 928 ‐ Regulatory Commission Expenses FERC Admin Fees SSQ Line Operating SSQ Line Operating Total ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         FERC 928 ‐ Regulatory Commission Expenses Total ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         ‐                         Total SSQ Line Budget 336,999               168,500                ‐                         ‐                        628                       628                       167,872               444,523               268,001                Page 12 of 12 12 of 12 1/13/2023