HomeMy WebLinkAbout2021-07-30 IMC Agenda and docs
INTERTIE MANAGEMENT COMMITTEE (IMC)
REGULAR MEETING
Friday, July 30, 2021
9:00 am
Alaska Energy Authority Board Room
813 W Northern Lights Blvd, Anchorage, AK 99503
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
4. AGENDA APPROVAL
5. PUBLIC COMMENTS
6. APPROVAL OF PRIOR MINUTES – JUNE 25, 2021
7. NEW BUSINESS
A. ELECTION OF OFFICERS
8. OLD BUSINESS
A. BYLAW AMENDMENT Gibson
9. COMMITTEE REPORTS
A. OC REPORT / OPERATORS REPORT CEA
B. BUDGET TO ACTUALS Budget Subcommittee
10. MEMBERS COMMENTS
11. NEXT MEETING DATE – September 24, 2021
12. ADJOURNMENT
INTERTIE MANAGEMENT COMMITTEE
AMENDED AND RESTATED BYLAWS
Dated: July 30, 2021
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TABLE OF CONTENTS
Article 1. STATEMENT OF OBJECTIVES....................................................................... 1
Article 2. AUTHORITY OF INTERTIE MANAGEMENT COMMITTEE ............................. 1
Article 3. OFFICES .......................................................................................................... 1
Article 4. REPRESENTATIVES ....................................................................................... 1
Article 5. IMC MEETINGS ............................................................................................... 2
5.1 Annual Meeting ............................................................................................................. 2
5.2 Regular Meetings. ......................................................................................................... 2
5.3 Special Meetings. .......................................................................................................... 2
5.4 Notice of Meetings. ....................................................................................................... 2
5.5 Waiver of Notice. ........................................................................................................... 3
5.6 Place of Meetings. ........................................................................................................ 3
5.7 Teleconferences ........................................................................................................... 3
5.8 Minutes of Meetings. ..................................................................................................... 3
5.9 Manner of Acting ........................................................................................................... 5
5.10 Conduct of Meetings. .................................................................................................... 5
Article 6. COMMITTEES ................................................................................................. 7
6.1 Designation. .................................................................................................................. 7
6.2 Powers. ......................................................................................................................... 7
6.3 Committee Decisions. ................................................................................................... 7
6.4 IMC Approval of Committee Decisions. ......................................................................... 7
6.5 Terms. .......................................................................................................................... 7
Article 7. OFFICERS ....................................................................................................... 7
7.1 Number ......................................................................................................................... 7
7.2 Election and Term of Office. .......................................................................................... 7
7.3 Removal ....................................................................................................................... 7
7.4 Vacancies ..................................................................................................................... 7
7.5 Chairman. ..................................................................................................................... 8
7.6 Vice Chairman. ............................................................................................................. 8
7.7 Secretary/Treasurer ...................................................................................................... 8
Article 8. INDEMNIFICATION ......................................................................................... 9
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Article 9. ANNUAL BUDGETS AND DETERMINATION OF RATES ............................... 9
9.1 Budget Process. ........................................................................................................... 9
9.2 Auditing Standards and Procedures .............................................................................. 9
9.3 Standards for Capital Asset Acquisition and Accounting ............................................... 9
Article 10. IMC FUNDS AND ASSETS ...........................................................................10
10.1 Required Funds. ......................................................................................................... 10
Article 11. INSURANCE .................................................................................................10
11.1 Coverage Limits. ......................................................................................................... 10
11.2 Self-Insurance ............................................................................................................. 10
11.3 Insurance Claim Proceeds. ......................................................................................... 10
11.4 Annual Review. ........................................................................................................... 10
Article 12. PROCEDURES FOR DISPUTE RESOLUTION ........................................... 10
12.1 Procedural Rules ........................................................................................................ 10
12.2 Arbitration. .................................................................................................................. 10
12.3 Costs of Arbitration. .................................................................................................... 11
12.4 Judicial Review. .......................................................................................................... 11
Article 13. REIMBURSEMENT OF COSTS ....................................................................11
13.1 Reimbursement of Costs. ............................................................................................ 11
Article 14. OTHER POLICIES ........................................................................................11
14.1 Numbering of Resolutions. .......................................................................................... 11
14.2 Contracts. ................................................................................................................... 11
14.3 Required Notice of New Intertie Capacity Allocation Methodology ............................... 11
Article 15. AMENDMENTS .............................................................................................12
15.1 Amendment of Bylaws. ............................................................................................... 12
Attachment 1 - Annual System Demand By Purpose (MW)
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INTERTIE MANAGEMENT COMMITTEE
AMENDED AND RESTATED BYLAWS
Article 1.
STATEMENT OF OBJECTIVES
The Intertie Management Committee (“IMC”) shall be responsible for the
management, operation, maintenance, and improvement of the Alaska Intertie Project
(the “Intertie”), subject to the non-delegable duties of the Alaska Energy Authority (“AEA”)
and in accordance with the provisions of the Second Amended and Restated Alaska
Intertie Agreement, dated March 11, 2014 (“AIA”).
All members of the IMC (“IMC Members”) have a substantial long -term interest in
the prudent management, operation, maintenance, and improvement of the Intertie. The
responsibilities of the IMC are derived from: (i) the delegation to the IMC of certain duties
involving the management, operation, maintenance, and improvement of the Intertie;
(ii) the obligations of the IMC Members and Intertie Users to pay the annual Intertie Costs
as set forth in the AIA; and (iii) the other obligations, duties, and responsibilities of the
IMC as set forth in the AIA.
These Bylaws set forth the policies and procedural rules of the IMC establis hed
pursuant to the authority granted the IMC in the AIA, as it may be amended from time to
time. The capitalized terms included in these Bylaws shall have the meaning specified in
Exhibit B to the AIA.
Article 2.
AUTHORITY OF INTERTIE MANAGEMENT COMMITTEE
The IMC exists and operates pursuant to the terms of the AIA. In the event the
authority of the IMC to act is at issue or otherwise challenged, the IMC shall first make a
finding as to its authority. If the IMC determines that it has authority to consider the matter,
it shall decide the issue on its merits. If the IMC determines that it does not have authority
to consider the matter, the matter will be subject to immediate judicial resolution. If the
court determines that the IMC in fact had authority to consider the matter, the matter shall
be remanded for IMC action.
Article 3.
OFFICES
The IMC shall have no physical office but shall have a mailing address at the AEA,
whose representative shall be the permanent Secretary of the IMC.
Article 4.
REPRESENTATIVES
The IMC membership consists of AEA and the Participants. In order to be eligible
to be an “IMC Member,” the entity or organization shall comply with the requirements of
the AIA.
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IMC Members that are not current on their financial obligations for Intertie Costs
as well as any costs or assessments approved by the IMC shall not be eligible to vote on
matters before the IMC or counted in the calculation of a quorum or majority.
Each IMC Member eligible to vote shall designate one representative and one
alternate representative to the IMC. Each IMC Member shall, as necessary, notify all other
IMC Members in writing of the names, addresses and telephone numbers of its
representative and designated alternate representative. An IMC Member may change its
designated representative or alternate representative at any time by providing written
notice of such change to the IMC with a copy to all IMC Members. The alternate
representative shall serve as the designated representative in the absence of the
designated representative.
No IMC Member shall obtain an additional vote through merger with, acquisition
of, or assignment from any other IMC Member. Under no circumstances shall an IMC
Member have or have the right to control, more than one vote on IMC m atters, or have
more than one voting representative, directly or indirectly, through another organization.
Article 5.
IMC MEETINGS
5.1 Annual Meeting. The annual meeting of the IMC shall be the first regular
meeting of the Fiscal Year (July 1 through June 30). The annual meeting shall be used
for the purpose of electing officers and transacting such other business as may come
before the IMC.
5.2 Regular Meetings. Regular meetings shall be held as needed, but in all
events at least twice a year, with the specific date and time to be determined by the IMC.
5.3 Special Meetings. Special meetings of the IMC may be called by the
Chairman or by two IMC Members at any time by so advising the Secretary of the IMC.
Business at a special meeting of the IMC shall be limited to the purpose stated in the
notice of such special meeting.
5.4 Notice of Meetings. Public notice shall be given by the Secretary for all IMC
meetings.
5.4.1 Notice of regular meetings of the IMC shall be given at least five (5)
days before the date of the meeting by:
(a) mailing notice to all IMC Members, alternates, and persons or
organizations who have filed with the IMC a written request to receive
notice, or
(b) providing an email or other electronic notice to all IMC
Members, alternates, and persons or organizations who have filed
with the IMC a written request to receive notice, and
(c) publishing a notice on AEA’s website.
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5.4.2 Notice for all meetings shall include the date, time and place of the
meeting, and if the meeting is by teleconference, the call -in number or
access information.
5.4.3 Written notice of special meetings shall be given in as far in advance
as is reasonable before the time specified for such meeting. Such notice of
special meetings shall state the purpose or purposes for which the meeting
is called. Business at a special meeting shall be limited to the purposes
stated in the notice of such special meeting.
5.4.4 The IMC shall make a good faith effort to give reasonable notice to
the public of all its meetings but, to the extent permitted by law, the
inadvertent failure to accomplish any one of the public notice requirements
shall not invalidate any action of the IMC.
5.5 Waiver of Notice. Whenever any notice is required to be given to any IMC
Member, a waiver of the notice requirement in writing, signed by t he person or persons
entitled to such notice, whether before or after the time stated in the notice, shall be
deemed equivalent to the giving of such notice.
5.6 Place of Meetings. The Chairman of the IMC may designate any place as
the place of meeting for any annual, regular, or special meeting of the IMC.
5.7 Teleconferences. Attendance and participation by any or all representatives
of the IMC Members at any meeting of the IMC may be by teleconference so long as all
IMC Members can be heard and hear all of the proceedings. For purposes of these
Bylaws, the term “teleconference” shall include any electronic means of communication
meeting the requirements of these Bylaws. The votes at a meeting held by
teleconference, or a meeting with an IMC Member participating by teleconference, shall
be taken by roll call. Participation by teleconference shall constitute presence in person
at the meeting. Materials that are to be considered at a meeting that is by teleconference
shall be distributed electronically.
5.8 Minutes of Meetings. Written Minutes shall be kept for all regular and special
meetings of the IMC. All decisions or agreements made shall be reduced to writing,
including all matters voted upon and each IMC Member’s vote on those matters. Minutes
of the IMC meetings shall be transmitted by mail, hand delivery, or electronically to each
IMC Member following each meeting. The official copy of the Minutes for each meeting
shall be signed by the Chairman and the Secretary.
5.9 Manner of Acting.
5.9.1 IMC actions may be taken by any reasonable voting method, provided
that any IMC Member may request a public roll call vote. All actions taken
via teleconference shall be by roll call vote. All decisions of the IMC shall be
reduced to writing including all matters voted upon and each IMC Member’s
vote on these matters.
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5.9.2 An IMC Member abstaining from a vote shall not be counted towards
any voting requirement. The minimum percentage required to transact
business shall be determined from the total number of IMC Members not
abstaining.
5.9.3 Except for those matters which expressly require a unanimous vote,
the vote of a minimum percentage of all IMC Members, or other special
voting parameters, the presence of at least two-thirds of the IMC Members
shall constitute a quorum for the transaction of business. The mere
presence of a sufficient number of IMC Members in a common location to
constitute a quorum shall not constitute a meeting of the IMC.
5.9.4 An IMC Member, or their alternate representative, who is present at
a meeting of the IMC at which action on an IMC matter is taken, shall be
presumed to have assented to such action unless the dissent or abstention
of the IMC Member or alternate representative is indicated and recorded in
the meeting minutes at the time of the action.
5.9.5 The following matters shall require the affirmative vote of a minimum
of 75 percent of the members of the IMC constituting greater than
66 percent of the total Annual System Demand of all members of the IMC,
including the affirmative vote of AEA (except as noted). The Annual System
Demand to be used for voting (and other IMC matters) shall be as set forth
in Attachment 1 hereto.
(a) Adoption of budgets, determination of annual Intertie Costs,
the allocation of Intertie Costs, annual budgets, and rates for use of
the Intertie.
(b) Determination of the maximum Intertie transfer capability,
Intertie transfer capacity allocation methodology, access to Intertie
transfer capacity, or allocation of capacity among Users.
(c) Establishing the estimated annual Payment Obligation of
each Intertie User for each fiscal year, together with a schedule of
equal monthly payments for each Intertie User and/or IMC Member
that such Intertie User and/or IMC Member shall be required to make
during that year; and to determine the costs to be collected from
Users for Intertie Transactions.
(d) Determining the actual annual Intertie Costs after the
conclusion of each fiscal year.
(e) Determining the appropriate amount, coverage, and limits of
insurance for or related to the Intertie.
(f) Establishing the minimum funding amounts for the Reserve
Fund.
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(g) Selecting among alternative methods for funding
Improvements or Required Work.
(h) Approving Improvements, and the design and specifications
for Required Work or Improvements.
(i) Adopting or amending these Bylaws.
(j) Adopting or amending operating policies and procedure or
Reliability Standards, including any sanctions for non -compliance
with them. AEA’s affirmative vote is not required with respect to
adopting or amending operating policies and procedures.
(k) Determining costs attributable to the Intertie, including the
determination of the allocation of costs for Improvements, and
Required Work.
(l) Determining the disposition of insurance claim proceeds.
(m) Determining whether new Participants have met the
requirements of the AIA.
(n) Designating, subject to the requirements of the AIA, which
Participant(s) will operate the Intertie.
(o) Approving limitations to the right to terminate the AIA as part
of bond or other debt financing.
(p) Approving decisions of the Operating Committee or other
special committee and any resolutions concerning the authority of a
special purpose committee.
(q) Referring an issue to arbitration pursuant to Section 12.2 of
these Bylaws.
All other matters, including the election and removal of officers, shall require
the affirmative vote of a simple majority of the IMC Members constituting
the quorum present and voting at the meeting where the matter is
considered.
5.9.6 The unanimous concurrence of all IMC Members shall be necessary
for the adoption or amendment of procedures for dispute resolution.
5.10 Conduct of Meetings. Robert’s Rules of Order shall govern the conduct of
IMC meetings except where in conflict with these Bylaws or any specific procedural rules
adopted by the IMC.
5.11 Open Meetings. The IMC has determined that Alaska public policy favors
openness and public access, and the IMC shall conduct its business in public in-
accordance with the following policies:
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5.11.1 Scheduled Meetings. All scheduled meetings of the IMC and any
of its special purpose committees shall be open to the public except as
otherwise provided in these Bylaws.
5.11.2 Executive Sessions. If any subjects to be discussed at a meeting
are subjects that may potentially be discussed in an executive session, the
meeting shall first be convened as a regular or special meeting and the
question of holding an executive session to discuss matters that come
within the subjects contained in Section 5.11.3 of these Bylaws shall be
determined by a majority vote of the IMC. No subjects may be considered
at the executive session except those mentioned in the motion callin g for
the executive session unless auxiliary to a subject specified in the motion.
No action may be taken during the executive session. Only IMC Members,
designated alternates, and attorneys for the IMC or for IMC Members may
attend an executive session, unless the motion calling for the executive
session specifies other persons whom the IMC wishes to attend.
5.11.3 Executive Session Subjects. The following subjects may be
discussed in an executive session:
(a) Matters the immediate knowledge of which would clearly
have an adverse effect upon the finances of AEA, the Intertie, or the
IMC or any of its Members;
(b) Subjects that tend to prejudice the reputation and character
of any person; provided, however, the person may request a public
discussion;
(c) Matters which by law, municipal charter or ordinance are
required to be confidential; and
(d) Matters involving consideration of records that by law are not
subject to public disclosure.
5.11.4 Exclusions. Sections 5.11.1, 5.11.2, and 5.11.3 shall not apply to:
(a) Informal discussions by and between IMC Members where
official business is not conducted;
(b) Formal or informal meetings and discussions by and
between IMC Members in which all parties indicate they are acting
individually as representatives of AEA or individual Participants and
not as the assembled IMC and at which no IMC business is
conducted, and no votes are taken, or decisions made; or
(c) The Operating Committee and any other special purpose
committees.
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Article 6.
COMMITTEES
6.1 Designation. The IMC shall establish an Operating Committee and may
establish other special purpose committees from time to time, subject to such conditions
as may be prescribed by the IMC. The designation of any such special purpose committee
shall not relieve the IMC or any IMC Member of any responsibility imposed by law or the
AIA.
6.2 Powers. Special purpose committees may act upon IMC matters only when
given prior authorization by the IMC. The IMC shall formalize the authorization by
adopting a resolution which details the scope of the special purpose committee's authority
to act.
6.3 Committee Decisions. Decisions made by a special purpose committee shall
be by affirmative vote of a majority of the members of the special purpose committee,
unless otherwise directed by the IMC.
6.4 IMC Approval of Committee Decisions. All decisions of the Operating
Committee and any other special purpose committees established under this Article 6
affecting AEA, the Participants, Intertie operations, or Users shall be subject to the
approval of the IMC.
6.5 Terms. Unless otherwise specifically provided by the IMC, the members of
each special purpose committee shall serve from the date of appointment until the date
of the next annual meeting of the IMC.
Article 7.
OFFICERS
7.1 Number. The officers of the IMC shall initially consist of a “Chairman,” a “Vice
Chairman,” and a “Secretary/Treasurer.” The offices of Chairman and Secretary shall not
be held by the same person. The IMC may elect such other officers and agents as it shall
deem necessary. Those officers shall hold office for such terms and shall exercise such
powers and perform such duties as shall be determined from time to time by the IMC.
7.2 Election and Term of Office. Initially only the Chairman and Vice Chairman
shall be elected by the IMC. The AEA representative sh all be the permanent
Secretary/Treasurer. Only IMC Members or their alternates shall be eligible to serve as
officers. Each officer shall hold office until a successor is elected and accepts office unless
the officer resigns or is removed by the IMC.
7.3 Removal. Any officer elected by the IMC may be removed upon a vote made
in accordance with Section 5.9 of these Bylaws.
7.4 Vacancies. In the event any vacancy occurs in any elected office of the IMC,
the remaining IMC Members shall elect a successor to the office at the next regular
meeting of the IMC.
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7.5 Chairman. The Chairman shall preside at all meetings of the IMC and shall
perform such other duties and have such other authority as the IMC may prescribe.
7.6 Vice Chairman. The Vice Chairman shall act under the direction of the
Chairman, and in the absence or disability of the Chairman or if the office of the Chairman
is vacant, shall perform the duties of the Chairman, and from time to time shall perform
such other duties and have such other authority as the Chairman or IMC may prescribe.
7.7 Secretary/Treasurer. All of the duties set forth in Sections 7.7.1 and 7.7.2
below shall be assigned to the Secretary/Treasurer.
7.7.1 Secretary Duties. The Secretary shall act under the direction of the
Chairman in regard to secretarial duties. Subject to the direction of the
Chairman or the IMC, the Secretary shall attend all meetings of the IMC and
keep a record of the proceedings. In the Secretary’s absence, the Chairman
shall designate another IMC Member to keep a record of the proceedings.
The Secretary shall perform the duties of the Chairman if the Chairman and
Vice Chairman are absent or not able to perform such duties. The Secretary
shall perform like duties for committees when required. The Secretary shall
give or cause to be given notice of all meetings of the IMC and special
meetings of the IMC and shall perform such other duties as may be
prescribed by the Chairman or the IMC. The Secretary may incur
reasonable expenses associated with keeping a record of the procee dings,
including the compensation and travel costs incurred to retain a person to
keep such records.
7.7.2 Treasurer Duties. The Treasurer shall act under the direction of the
IMC in regard to duties of the Treasurer. Subject to the direction of the IMC
and to the terms of the AIA, the Treasurer shall have control of the IMC
funds and securities and shall keep full and accurate accounts of receipts
and disbursements in books belonging to the IMC and shall immediately
deposit all monies and other valuable instrum ents in the name and to the
credit of the IMC in such depositories as may be designated by the IMC.
The Treasurer shall disburse the funds of the IMC as may be directed by
the IMC or as otherwise provided in the AIA, taking proper vouchers for
such disbursements, and shall render to the Chairman and the IMC at its
regular meetings or when the IMC so requires, an accounting of all the
Secretary/Treasurer’s transactions as Treasurer and of the financial
condition of the IMC. The IMC may secure a bond in an ad equate amount
to cover the actions of the Treasurer.
Article 8.
INDEMNIFICATION
To the extent legally permitted and financially able to do so from IMC -controlled
assets or with insurance, the IMC Participants shall indemnify and hold IMC Participants,
their alternate representatives, and IMC officers harmless against all claims and liabilities
which they or any of them incur as a party defendant to any proceeding (other than a
proceeding filed by or on behalf of the IMC), based on any authorized action of any such
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person as an IMC Participant or as an officer of the IMC within the scope of the office.
For purposes of this provision, “IMC Participant” means a designated IMC representative
of a Participant, an alternate representative of a Participant, an authorized agent of the
IMC who is otherwise employed by the IMC, or any authorized employee of the IMC.
Article 9.
ANNUAL BUDGETS AND DETERMINATION OF RATES
9.1 Budget Process. The Alaska Intertie Agreement and any bond resolutions
or debt covenants shall provide the basis for the IMC’s formal budget process. The IMC
shall adopt a detailed budget process. In addition to the budgeted amounts in the AIA,
AEA and the IMC shall also provide annual budgets detailing the estimated costs relating
to any other requirement, insurance, or the Intertie-specific administrative and general
costs to be paid to the AEA.
9.2 Auditing Standards and Procedures.
9.2.1 An annual audit shall be performed by qualified independent auditors
selected by the IMC, to be completed on or before the first day of December
of each year.
9.2.2 The primary purpose of the audit is to verify expenses. The scope of
the audit shall include the operating and maintenance costs relat ing to the
Intertie, the annual Intertie-specific costs of AEA, and AEA and IMC assets,
liabilities and costs, including all funds administered by AEA and the IMC,
necessary to establish a true-up of the annual Intertie Costs.
9.2.3 The annual financial statements shall disclose the comparison of
actual operating results to the annual budget.
9.2.4 To the extent necessary, the IMC, individual IMC Members, and AEA
shall make available to the auditors such records and schedules as are
required for the auditors’ examination of the financial statements in a timely
manner.
9.3 Standards for Capital Asset Acquisition and Accounting. To provide for a
comprehensive, consistent policy of ownership and control of the Intertie, AEA and the
IMC have designated AEA as the owner of all capital assets acquired for and included in
the Intertie. Subject to the terms of the AIA, the IMC has been delegated all
responsibilities for the management, operation, maintenance, improvement, and control
of all capital assets comprising the Intertie.
9.3.1 Capital assets include an asset acquired for the benefit of the Intertie
that has a value of $2,500 or more and a useful life of at least one year.
9.3.2 The IMC shall transfer ownership of any assets held in trust for the
Intertie to AEA.
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9.3.3 The IMC will have primary control and management under the AIA of
all capital assets whether purchased with State of Alaska or Participant
funds. The IMC shall manage all proceeds derived from sales upon
retirement of these capital assets as well as the purchase of additional
capital assets for the benefit of the Intertie.
9.3.4 To the extent that purchase costs can be minimized through the State
of Alaska’s purchasing power, AEA may make purchases on behalf of the
IMC as the “Purchasing Agent.” To the extent other purchasing alternatives
are preferable, the IMC may use those procedures.
Article 10.
IMC FUNDS AND ASSETS
10.1 Required Funds. In addition to any requirements imposed by a bond
resolution or other debt covenants, the IMC may establish any special purpose funds it
deems appropriate.
Article 11.
INSURANCE
11.1 Coverage Limits. Insurance shall be secured and maintained in types and
amounts as are customary in the electric utility industry for facilities of similar types and
sizes as the Intertie and in compliance with the requirements of the AIA. The
determination of “customary insurance” shall be made by the IMC in concert with any
insurance consultant employed by the AEA.
11.2 Self-Insurance. The amounts and types of insurance determined
“customary,” including the minimum amounts required that may be in any Bond
Resolution, may be maintained through self-funded insurance methods.
11.3 Insurance Claim Proceeds. Disposition of insurance claim proceeds for
damage or destruction of the physical facilities or application of any other insurance
proceeds accruing to the Intertie shall be determined by the IMC.
11.4 Annual Review. AEA and the IMC together shall annually review the
insurance types and amounts carried with respect to the Intertie.
Article 12.
PROCEDURES FOR DISPUTE RESOLUTION
12.1 Procedural Rules. The IMC shall perform its decision-making responsibilities
consistent with the AIA and any duly adopted procedural rules.
12.2 Arbitration. The IMC may refer any matter within the IMC’s authority to
arbitration. Unless otherwise unanimously agreed to by IMC Members, arbitration shall
be conducted before an arbitrator selected under the guidelines of the American
Arbitration Association and the arbitration shall be conducted in accordanc e with the
commercial arbitration rules of the American Arbitration Association then in effect. In
addition, the arbitrator must have education and experience in the particular matter being
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arbitrated. The arbitrator shall have no authority, power, or juri sdiction to alter, amend,
change, modify, add to or delete any of the provisions of the AIA and the decision of the
arbitrator shall be subject to judicial review as an IMC decision, in accordance with
Section 12.4, below.
12.3 Costs of Arbitration. The costs incurred in connection with the arbitration
shall be apportioned by the arbitrator as she or he deems appropriate.
12.4 Judicial Review. Any action, or failure to act, of the IMC shall be subject to
judicial review. The reviewing court shall (a) set aside any IMC action found to be
arbitrary, capricious or otherwise not in accordance with law or with the terms of the AIA
or these Bylaws, and (b) order the IMC to take action if such action has been
unreasonably withheld or delayed. Failure of any party to appeal any IMC decision shall
not constitute a waiver of the right to appeal any future decision. Judicial review shall be
governed by the laws of the State of Alaska and shall be filed in the Superior Court for
the State of Alaska, Third Judicial District at Anchorage.
Article 13.
REIMBURSEMENT OF COSTS
13.1 Reimbursement of Costs. Unless otherwise agreed to in advance by the
IMC, each IMC Member shall be responsible for the cost of travel and other expenses for
its representatives. Application for reimbursement of IMC-approved costs and expenses
must be made to the Secretary of the IMC.
Article 14.
OTHER POLICIES
14.1 Numbering of Resolutions. All resolutions and actions adopted by the IMC
shall be assigned a number. The first part of the number shall be the last two digits of the
year in which the resolution or action is adopted (e.g., Resolution No. 11 - ). The second
part shall be a sequential number reflecting the order in which the resolution or action
was adopted, beginning with the number “1,” and increasing by one with the adoption of
each subsequent resolution or action. The Secretary of the IMC shall establish and
maintain an official journal for recording resolutions, and actions of the IMC.
14.2 Contracts. The presiding officer of the IMC shall be authorized to execute
contracts approved by the IMC. The IMC may provide other requirements for the
execution of contracts. AEA may designate one of its officers or employees to execute
contracts approved by the IMC. The IMC’s approval of the execution of a contract shall
specify the person or persons authorized to execute such contract.
14.3 Required Notice of New Intertie Capacity Allocation Methodo logy. The IMC
shall provide at least thirty (30) days for the public to comment on any proposed Intertie
capacity allocation methodology or for the review of any current Intertie capacity allocation
methodology.
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Article 15.
AMENDMENTS
15.1 Amendment of Bylaws. These Bylaws may be altered, amended, or repealed
and new Bylaws may be adopted by the IMC at any regular or special meeting, subject
to the voting requirements set out in Section 5.9 of these Bylaws.
* * * * *
The Secretary hereby certifies that this is a true and correct copy of the Bylaws
approved by the IMC on July 30, 2021.
By:
Kirk H. Warren, Secretary
ATTACHMENT 1
TO
INTERTIE MANAGEMENT COMMITTEE
AMENDED AND RESTATED BYLAWS
Annual System Demand By Purpose (MW)
IMC Member Purpose
IMC Voting1 All Other AIA/IMC Matters
Alaska Energy Authority N/A N/A
Municipal Power & Light --- ----
Matanuska Electric Assn. 100.0 134.0
Golden Valley Electric Assn. 100.0 199.3
Chugach Electric Assn. 100.0 368.7
Total 300.0 702.0
1 The Annual System Demand in the IMC Voting column is to be used with voting requirements in
Section 5.9 of the Intertie Management Committee Amended and Restated Bylaws.
Intertie Management Committee Meeting
Intertie Operating Committee Report
July 30, 2021
1. Intertie Operating Committee (IOC)
a. The IOC last met on Thursday July 29, 2021. A verbal report will be provided during
this meeting to the IMC in addition to this report.
b. EPS has provided their benchmark of the model and have made recommendations
modifications to the model to better reflect actual system operations. The study is
moving forward and is on schedule.
c. Problem areas first identified in August 2020 flight inspection report were more
carefully inspected during an April 2021 ground patrol. GVEA Engineers participated
in the ground patrol and determined there are two towers (531 and 532) identified
that will require a fix be engineered to address the noted problems. GVEA reviewing
their findings and will provide a plan to make necessary repairs.
2. Intertie Trip 10:59 on June 3, 2021
a. Tripped occurred at 10:59 am
b. Restored at 13:29 pm
c. the Alaska Intertie experienced a phase to ground fault and tripped open. There were 72
MW of power flowing north on the tie at the time of the trip. The high frequency from
the trip was 61.12 Hz, corresponding to a system frequency response of about 6.5
MW/0.1Hz. Minimum frequency was 59.249 Hz and UFLS did not occur. Power
oscillations were observed between South Central and the Kenai Peninsula reaching a
peak-to-peak magnitude of 223 MW as measured from Quartz Creek to Daves Creek.
that is a very large power swing. Power from Daves-Hope in this oscillation peaked at
124 MW, however a voltage collapse was avoided, and the Southern Tie did not trip.
PART 2: EVENT SUMMARY
07/27/2021
TO04/01/2021 06/30/2021
IOC QUARTERLY RELIABILITY REPORT
Event
Num
Date/Time Duration Description Freq
extreme
Intertie Kenai
opened opened
Unit Line
Trip Trip
BESS Silos Load
Shed
Comments
1,131 04/26/2021 17:20:29 138 kV CSS to GHS Trip 60.19 X 0.0 23.3 0.02.1
1,132 04/28/2021 10:16:29 HLP ST1 Trip 59.82 X 0.0 0.0 0.01.7
1,133 05/02/2021 12:20:00 HLP ST1 Trip 59.83 X 0.0 0.0 0.07.7
1,134 05/03/2021 16:08:30 HLP ST1 Trip 59.77 X 0.0 0.0 12.10.6
1,135 05/04/2021 04:31:24 HLP ST2 Trip 59.69 X 0.0 0.0 0.00.8
1,136 05/18/2021 07:35:12 FKS jogs ball mill 59.79 X 0.0 0.0 0.00.5
1,137 05/18/2021 14:03:33 69kV FWS-HPS Trip 60.19 X 0.0 6.9 17.53.0
1,138 06/20/2021 06:28:07 NPC Trip 59.43 X 0.0 0.0 0.05.3
1,139 06/20/2021 12:50:04 NPC GT3 Trip 59.62 X 0.0 0.0 0.01.0
1,140 06/21/2021 09:49:39 GHS B10 Trip (raven) 60.23 X 0.0 19.5 0.02.8
1,141 06/24/2021 14:43:41 Nikkels 4 Trip (load rejection test) 59.53 X 0.0 0.0 0.00.4
1,142 06/24/2021 15:06:48 Nikkels 4 Trip (load rejection test) 59.66 X 0.0 0.0 0.00.2
1,143 06/25/2021 14:19:38 Nikkels 4 Trip (load rejection test
for Sullivan CC ProBoost Tuning )
59.66 X 0.0 0.0 0.00.1
2.02Average Duration
*has sub event
PART 2: EVENT SUMMARY
07/27/2021
TO07/01/2021 09/30/2021
IOC QUARTERLY RELIABILITY REPORT
Event
Num
Date/Time Duration Description Freq
extreme
Intertie Kenai
opened opened
Unit Line
Trip Trip
BESS Silos Load
Shed
Comments
0.0 0.0 0.0
0.00Average Duration
*has sub event
07/27/2021 SYSTEM EVENTS
EVENT DATE DESCRIPTION AEGT SES MEA MLP CEA GVEA HEA ORIGINATOR
1,143 Nikkels 4 Trip (load rejection test for Sullivan CC
ProBoost Tuning)
06/25/2021 14:19:38 X X CEA
1,142 Nikkels 4 Trip (load rejection test)06/24/2021 15:06:48 X X CEA
1,141 Nikkels 4 Trip (load rejection test)06/24/2021 14:43:41 X X CEA
1,140 GHS B10 Trip (raven)06/21/2021 09:49:39 GVEA X XX
1,139 NPC GT3 Trip06/20/2021 12:50:04 GVEA X XX
1,138 NPC Trip06/20/2021 06:28:07 X GVEA X XX
1,137 69kV FWS-HPS Trip05/18/2021 14:03:33 X X GVEA X XX
1,136 FKS jogs ball mill05/18/2021 07:35:12 X X GVEA X XX
1,135 HLP ST2 Trip05/04/2021 04:31:24 X X GVEA X XX
1,134 HLP ST1 Trip05/03/2021 16:08:30 X X GVEA X XX
1,133 HLP ST1 Trip05/02/2021 12:20:00 GVEA X XX
1,132 HLP ST1 Trip04/28/2021 10:16:29 GVEA X XX
1,131 138 kV CSS to GHS Trip04/26/2021 17:20:29 X GVEA X XX
1,130 BCT Unit 4 trip03/29/2021 07:40:24 X X HEA X XX
1,129 HLP ST2 Trip03/27/2021 14:33:41 X X GVEA X XX
1,128 HLP ST2 Trip03/24/2021 13:36:38 X X GVEA X XX
1,127 NPC Trip (caused by NIS-NPC 138kV Line Tripping)03/24/2021 13:06:14 X X GVEA X XX
1,126 HLP ST2 Trip03/15/2021 20:36:21 X X GVEA X XX
1,125 HLP ST1 Trip02/28/2021 12:16:12 X X GVEA X XX
1,124 HLP ST2 Trip02/24/2021 05:35:07 X X GVEA X XX
1,123 SPP Unit 13 Ramp and Trip due to node fault.02/25/2021 16:07:38 X X CEA X XX
1,122 HLP ST1 Trip02/17/2021 03:32:59 X X GVEA X XX
1,121 SPP Unit 13 trip during switching.01/12/2021 06:24:07 X X CEA X XX
1,120 SPP Unit 13 trip due to valve driver fault12/18/2020 00:14:13 X X CEA X XX
1,119 SPP 13 Trip due to fuel valve issue.12/16/2020 14:11:21 X X CEA X XX
1,118 SPP 12 trip during unit mapping.12/04/2020 15:18:11 X X CEA X XX
1,117 HLP ST2 Trip11/28/2020 23:44:35 X X GVEA X XX
1,116 HLP ST2 Trip11/27/2020 14:18:25 X X GVEA X XX
*Has Sub Events
Note: Main Event and ALL Sub Events must be Responded To , for an Event to be considered "RESPONDED TO"
Effective 7/1/20 YTD Actuals as a OVER
Approved % of Total (UNDER)
FY21 Budget YTD Budget YTD Actuals Annual Budget YTD Variance
REVENUES
GVEA 1,255,200 1,186,680 1,861,419 148.3%674,739
ML&P 231,217 216,217 111,217 48.1%(105,000)
CEA 250,065 235,065 270,065 108.0%35,000
MEA 434,064 401,206 424,851 97.9%23,644
INTEREST / CAPITAL CREDITS - 268 0.0%268
TOTAL REVENUES 2,170,546 2,039,168 2,667,819 122.9%628,652
EXPENSES
FERC 562 - Station Operation Expenses
GVEA - Substation Electricity Usage 8,000 7,333 8,989 112.4%1,655
8,000 7,333 8,989 112.4%1,655
FERC 566 - Miscellaneous Transmission Expense
Private Line Telephone Service for AKI SCADA (GVEA)50,000 45,833 5,093 10.2%(40,740)
Cell Phone Comm. Svc for Weather Monitoring (Verizon)15,000 13,750 10,902 72.7%(2,848)
SLMS Support and Intertie Ground Patrol 100,000 91,667 98,540 98.5%6,873
165,000 151,250 114,535 69.4%(36,715)
FERC 567 - Transmission Expenses - Rents
Rents - Alaska Railroad 700 642 700 100.0%58
MEA - Talkeetna Storage 7,200 6,600 6,600 91.7%-
7,900 7,242 7,300 92.4%58
FERC 570 - Maintenance of Station Equipment
GVEA - Healy, Cantwell, Goldhill 65,000 59,583 133,064 204.7%73,481
GVEA - SCADA Maintenance Healy, Cantwell, Gold Hill 5,000 4,583 - 0.0%(4,583)
GVEA - Perform Maintenance, repaint Reactors Healy SVC Yard 10,000 9,167 127,874 1278.7%118,707
GVEA - Cantwell Standby Generator Replacement 75,000 68,750 29,016 38.7%(39,734)
CEA - Teeland Substation 90,000 82,500 162,604 180.7%80,104
MEA - Douglas Substation 4,000 3,667 25,789 644.7%22,123
MEA - Douglas Substation 138 kV Bus Repair & BKR Inspections 75,000 68,750 - 0.0%(68,750)
GVEA - Douglas Substation OOS relaying and communications 50,000 45,833 - 0.0%(45,833)
CEA - Telecomm Support (Douglas Substation Communications)10,000 9,167 - 0.0%(9,167)
384,000 352,000 478,347 124.6%126,347
FERC 571 - Maintenance of Overhead Lines
GVEA - Northern Maintenance 130,000 119,167 64,881 49.9%(54,286)
GVEA - Northern ROW Clearing 130,000 119,167 36,721 28.2%(82,446)
MEA - Special Patrols [Incl Helicopter Inspections]3,000 2,750 - 0.0%(2,750)
MEA - Southern Maint (Incl Ground and Climbing Inspect)160,485 147,111 12,601 7.9%(134,510)
MEA - Southern ROW Clearing 125,000 114,583 228,413 182.7%113,829
MEA - Equipment Repair and Replacement 850,000 779,167 780,866 91.9%1,699
1,398,485 1,281,945 1,123,482 80.3%(158,463)
FERC 924 - Property Insurance
AK Intertie - Insurance 44,000 40,333 21,369 48.6%(18,964)
44,000 40,333 21,369 48.6%(18,964)
Intertie Operating Costs Total 2,007,385 1,840,103 1,754,021 87.4%(86,082)
FERC 920 - AEA Administrative Costs
Personal Services, Travel and Other Costs 90,000 82,500 128,772 143.1%46,272
90,000 82,500 128,772 143.1%46,272
FERC 920 - IMC Administrative Costs
IMC Administrative Costs (Audit, meetings, legal)40,000 36,667 28,826 72.1%(7,841)
40,000 36,667 28,826 72.1%(7,841)
FERC 566 - Miscellaneous Transmission Expense
Misc. System Studies 290,000 265,833 147,605 50.9%(118,229)
LIDAR Survey 300,000 275,000 226,125 75.4%(48,875)
590,000 540,833 373,730 63.3%(167,104)
Intertie Administration Costs Total 720,000 660,000 531,327 73.8%(128,673)
TOTAL EXPENSE 2,727,385 2,500,103 2,285,348 83.8%(214,755)
SURPLUS (SHORTAGE)(556,839) (460,935) 382,471 -68.7%843,406
Alaska Intertie FY21 Budget to Actuals Status Report for the Period July 1, 2020 through May 31, 2021
7/15/2021 1 of 2
Alaska Intertie FY21 Budget to Actuals Status Report for the Period July 1, 2020 through May 31, 2021
Budgeted Usage Actual Usage to Date
GVEA MEA CEA ML&P TOTAL GVEA MEA CEA ML&P TOTAL
MONTH MWH MWH MWH MWH MWH MONTH MWH MWH MWH MWH MWH
Jul 6,000 2,107 - - 8,107 Jul 2,248 786 - - 3,034
Aug 8,000 2,004 - - 10,004 - Aug 7,617 1,628 - - 9,245
Sep 7,000 1,884 - - 8,884 Sep 12,672 1,651 - - 14,323
Oct 10,000 1,711 - - 11,711 Oct 14,089 1,817 - - 15,906
Nov 8,000 1,715 - - 9,715 Nov 14,115 2,065 - - 16,180
Dec 9,000 2,040 - - 11,040 Dec 14,530 2,154 - - 16,684
Jan 10,000 2,454 - - 12,454 Jan 16,895 2,197 - - 19,092
Feb 10,000 2,008 - - 12,008 Feb 23,148 2,082 - - 25,230
Mar 6,000 1,855 - - 7,855 Mar 14,870 2,210 - - 17,080
Apr 12,000 1,750 - - 13,750 Apr 29,470 1,855 - - 31,325
May 10,000 2,011 - - 12,011 May 17,993 1,821 - - 19,814
Jun 6,000 2,002 - - 8,002 Jun - - - - -
- -
TOTAL 102,000 23,541 - - 125,541 TOTAL 167,647 20,266 - - 187,913
INTERTIE PROJECTED ENERGY USAGE TO DATE (MWH)117,539 INTERTIE ACTUAL ENERGY USAGE TO DATE (MWH) 187,913
Budgeted Operating Costs for the period 1,840,103$ Actual Operating Costs for the period 1,754,021$
(based on amended budget)
Budgeted Usage Revenue for the period 1,048,448$ Actual (Billed) Usage Revenue for the period 1,676,184$
(budgeted rate x projected usage)(budgeted rate x actual usage)
Estimated Budgeted Energy Rate per MWH 13.07$
(based on to date budgeted costs and usage)
Annual Budgeted Energy Rate (Billed Rate)8.92$ Projected Actual Energy Rate per MWH 7.79$
(based on minimum contract value)(based on to date actual costs and usage)
7/15/2021 2 of 2