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Home My WebLink About2024-05-03 IMC Agenda and docs INTERTIE MANAGEMENT COMMITTEE (IMC) REGULAR MEETING May 3, 2024 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. PUBLIC COMMENTS 5. AGENDA APPROVAL 6. APPROVAL OF PRIOR MINUTES – March 22, 2024 7. NEW BUSINESS 8. OLD BUSINESS A. Approval of FY 25 IMC Budget 9. COMMITTEE REPORTS A. Budget to Actuals B. IOC Committee C. Operator Report 10. MEMBERS COMMENTS 11. NEXT MEETING DATE – June 21, 2024 12. ADJOURNMENT Page 1 of 8 Alaska Energy Authority Alaska Intertie Date: March 22, 2024 Proposed FY2025 Budget Page 2 of 8 ALASKA ENERGY AUTHORITY ALASKA INTERTIE FY25 Proposed Budget Contents Description Page # FY25 Proposed Budget Summary 3 O&M Budget 4-5 Grant Budget 6 Usage Projection 7 AK Intertie MITCR 8 Page 3 of 8 Alaska Intertie FY25 Proposed Budget Proposed Budget Summary Revenues O&M Grant Total Total GVEA Total CEA Total MEA Total HEA Total Revenue from Operations 3,966,365 - 3,966,365 2,838,837 431,626 695,903 - 3,966,365 Grant Match - 536,362 536,362 442,794 32,859 60,709 4,805 536,362 3,966,365 536,362 4,502,727 3,281,630 464,485 756,612 4,805 4,502,727 Expenses Operations 2,957,100 - 2,957,100 Admin 785,000 - 785,000 Grant - 536,362 536,362 3,742,100 536,362 4,278,462 Surplus/(Shortage)224,265 - 224,265 (Total Paid by Utilities) Page 4 of 8 Alaska Intertie FY25 Proposed Budget data @ 1/4/24 FY24 Approved Draft FY21 FY22 FY23 ACTUALS FY24 FY25 Actual Actual Actual 12/31/23 Budget Budget REVENUES GVEA 1,942,988 2,075,721 1,632,539 2,008,550 3,631,114 2,838,837 CEA 290,065 265,259 405,435 322,773 471,717 431,626 MEA 460,479 413,239 450,409 328,562 654,520 695,903 INTEREST 903 1,668 58,981 19,609 - - TOTAL REVENUES 2,694,435 2,755,887 2,547,364 2,679,494 4,757,352 3,966,365 EXPENSES FERC 562 - Station Operation Expenses GVEA - Substation Electricity Usage 9,382 45,889 478 - - 9,382 45,889 478 - - - FERC 566 - Miscellaneous Transmission Expense Private Line Telephone Service for AKI SCADA (GVEA)5,556 5,556 5,788 5,005 6,000 6,000 Cell Phone Comm. Svc for Weather Monitoring (Verizon)11,904 12,025 11,983 - 13,000 13,000 SLMS Support and Intertie Ground Patrol 98,540 154,947 145,346 21,205 175,000 175,000 116,000 172,528 163,116 26,210 194,000 194,000 FERC 567 - Transmission Expenses - Rents Rents - Alaska Railroad 700 700 1,500 1,000 1,000 1,000 MEA - Talkeetna Storage 7,200 7,200 7,200 2,400 7,200 7,200 Equipment Rental - 375 102 - - - 7,900 8,275 8,802 3,400 8,200 8,200 FERC 569 Maintenance of Structures MEA - Re-insulate 20 dead-end structures - - - - 75,000 300,000 MEA - Re-insulate 30 tangent structures - - - 75,000 250,000 - - - - 150,000 550,000 FERC 570 - Maintenance of Station Equipment GVEA - HLSB17 Sync PT Replacement - - - - - 25,000 GVEA - Healy, Cantwell, Goldhill 154,917 63,163 141,248 125,000 64,500 GVEA - Replace Healy Substation Breaker B17 - - - - - 350,000 GVEA - Healy and Goldhill Digital Fault Recorders - 53,255 - - - - GVEA - Gold Hill SVC Cooling - 460 - - - - GVEA - Cantwell Install Breakers or Load Break Switches - 182,606 - - 306,000 306,000 GVEA - Cantwell 4S2 Switch Repair - - 43,217 - - - GVEA - Perform Maintenance, repaint Reactors Healy SVC Yard 145,494 - 4,472 - - - GVEA - Perform Maintenance, repaint Reactors Gold Hill SVC Yard - 7,452 - - - - GVEA - Capacitor Spares - - - - 20,000 - GVEA - Cantwell Standby Generator Replacement 29,016 - - - - - GVEA - SVC Intertie Trust Fund Eligible Expenses - - - - - GVEA - Intertie - SVC Project - - - - 50,000 CEA - AK Intertie Yard - - - - - CEA - Teeland Substation Communication - - - - 5,000 5,000 CEA - Teeland Substation 183,401 115,365 74,128 82,488 170,000 170,000 CEA - Douglas Substation Communication - - - 1,554 - 2,400 MEA - Douglas Substation 26,115 - - 1,441 - - MEA - Douglas Substation 138 kV BKR Inspections - - - - 25,000 25,000 CEA - Telecomm Support (Douglas, Teeland, Anc-Fbks Leased Circuits)- 1,742 - - - - 538,943 424,043 263,065 85,482 651,000 997,900 FERC 571 - Maintenance of Overhead Lines GVEA - Northern Maintenance 68,204 107,641 99,464 - 150,000 - GVEA - Northern ROW Clearing 36,721 68,882 328,252 - 550,000 550,000 GVEA - Northern ROW Remote Sensing and Analysis - - - - 400,000 - GVEA - Landing Pads - - - - 75,000 75,000 GVEA - Re-level Structures & Adjust Guys - - - - 80,000 - Page 5 of 8 GVEA - Repair Tower 531 Foundation - - - - 150,000 - GVEA - Repair Tower 532 Foundation - - - - 150,000 - GVEA - Helicopter Patrols - - - - - 80,000 MEA - Special Patrols [Incl Helicopter Inspections]- 599 11,603 - - 15,000 MEA - Southern Maint (Incl Ground and Climbing Inspect)138,199 191,358 78,729 - 140,000 140,000 MEA - Southern ROW Clearing 228,413 168,367 525,520 - 500,000 300,000 MEA - Southern ROW Remote Sensing and Analysis - - - - 125,000 10,000 MEA - Equipment Repair and Replacement 780,866 76,494 803,393 152,755 350,000 - 1,252,403 613,341 1,846,961 152,755 2,670,000 1,170,000 FERC 924 - Property Insurance AK Intertie - Insurance 38,773 37,133 40,178 11,334 37,000 37,000 38,773 37,133 40,178 11,334 37,000 37,000 Intertie Operating Costs Total 1,963,401 1,301,209 2,322,601 279,180 3,710,200 2,957,100 FERC 570 - Maintenance of Station Equipment MEA - Replace Protective Relay Schemes Douglas - - - - - - - - - - - Intertie Cost of Improvements Total - - - - - - FERC 920 - AEA Administrative Costs Personal Services, Travel and Other Costs 210,409 235,608 190,236 49,077 230,000 250,000 210,409 235,608 190,236 49,077 230,000 250,000 FERC 920 - IMC Administrative Costs IMC Administrative Costs (Audit, meetings, legal)30,890 29,276 14,579 2,861 20,000 20,000 30,890 29,276 14,579 2,861 20,000 20,000 FERC 566 - Miscellaneous Transmission Expense Misc Studies: System Reserves Study (IBR), PSS/E maint, 230 kV Upgrade System Impact Study 186,675 145,327 150,368 28,200 266,000 515,000 LIDAR study (complete lidar, vegetation, PLS CADD file with drawings, structure/foundation movement, infrared, and imaging) 226,125 - - - - - Synchrophaser System (Moved to GRANT BUDGET worksheet)- - - 250,000 - 412,800 145,327 150,368 28,200 516,000 515,000 Intertie Administration Costs Total 654,099 410,211 355,182 80,138 766,000 785,000 TOTAL EXPENSE 2,617,500 1,711,420 2,677,783 359,318 4,476,200 3,742,100 SURPLUS (SHORTAGE)76,935 1,044,468 (130,419) 2,320,176 281,152 224,265 Page 6 of 8 Alaska Intertie FY25 Proposed Budget Utility Grant Matching Contributions Snow Loading Grant to re-insulate from Douglas north 80 miles (Proposed Allocation Option #2 - Revenue excluding Admin Fee from Allocation) GVEA Grant Submittal to AEA ($13.8M grant with $3M in matching funds & $500k in-kind in-house labor) AEA to revise per agreed payment Total Match Amount 491,167$ Percent FY24 Power Purchaser Share Match Year Project Total Cost Grant Reimbursement Grant Match (Cash and In-Kind) 1 $1,964,668 $1,473,501 $491,167 GVEA 81.95%402,511 2 $2,942,956 $2,207,217 $735,739 CEA 6.69%32,859 3 $2,942,956 $2,207,217 $735,739 MEA 11.36%55,797 4 $2,942,956 $2,207,217 $735,739 5 $2,965,356 $2,224,017 $741,339 100.00%491,167 Total $13,758,890 $10,319,167 $3,439,722 Synchrophaser System Grant (Proposed Allocation Option #3 - Revenue Excluding Capacity and Admin Fee from Allocation) Per GVEA Grant Submittal to AEA ($2.2M grant with $50k in matching funds & $500k in-kind in-house labor) AEA to revise budget for approved payment methods Total Match Amount 50,000$ HEA is contributing because they are receiving benefit from the Synchrophaser System (Railbelt wide) Percent FY24 This is 9.61% of the Total Match Amount and is based on their load ratio share per resolution. Power Purchaser Share Match HEA (Load Ratio Share)9.61%4,805 Year Project Cost Railbelt Utilities Combined Cash Match Railbelt Utilities In Kind Contribution Grant Contribution 1 $440,245 $9,839 $100,222 $330,183 GVEA 89.13%40,282 2 $440,245 $9,839 $100,222 $330,183 CEA 0.00%- 3 $440,245 $9,839 $100,222 $330,183 MEA 10.87%4,913 4 $440,245 $9,839 $100,222 $330,183 5 $440,245 $9,839 $100,222 $330,183 100.00%45,195 Total $2,201,225 $49,195 $501,110 $1,650,915 DOE Resiliency Grant - AK Intertie Snow Load Resiliency DOE Resiliency Grant - Synchrophasor Project - Five Year Average Page 7 of 8 Alaska Intertie FY25 Proposed Budget True up to Contract GVEA MEA CEA TOTAL USAGE CAPACITY ADMIN CASH FLOW MONTH Value MWH MWH MWH MWH GVEA MEA CEA GVEA MEA CEA GVEA | MEA | CEA TOTALS Jul 12,275 2,187 0 14,462 $160,554 $28,603 $0 $244,140 $74,181 $169,959 $65,417 $742,854 Aug 14,077 2,295 0 16,372 $184,125 $30,017 $0 $65,417 $279,559 Sep 14,766 2,210 0 16,976 $193,137 $28,908 $0 $65,417 $287,461 Oct 27,634 2,165 0 29,799 $361,455 $28,312 $0 $65,417 $455,184 Nov 27,147 2,339 0 29,486 $355,078 $30,600 $0 $65,417 $451,094 Dec 26,405 2,633 0 29,038 $345,372 $34,440 $0 $65,417 $445,229 Jan 11,268 2,458 0 13,726 $147,383 $32,152 $0 $65,417 $244,952 Feb 11,151 2,261 0 13,412 $145,858 $29,574 $0 $65,417 $240,848 Mar 7,727 2,466 0 10,193 $101,074 $32,250 $0 $65,417 $198,741 Apr 10,367 2,258 0 12,625 $135,598 $29,532 $0 $65,417 $230,546 May 10,823 2,321 0 13,144 $141,560 $30,364 $0 $65,417 $237,340 Jun 4,728 1,935 0 6,662 $61,837 $25,303 $0 $65,417 $152,557 TOTAL 0 178,366 27,527 0 205,893 $2,333,030 $360,055 $0 $244,140 $74,181 $169,959 $785,000 $3,966,365 Total Energy:$2,693,085 Total Capacity :$488,280 205,893 MWH 188,736 MWH 204,984 MWH TOTAL MWH REVENUE $3,966,365 O&M BUDGET - Operating 2,957,100 - O&M BUDGET - Administrative 785,000 UTILITY FY 25 TOTAL O&M BUDGET 3,742,100 MEA 30.40%23.70 MW SURPLUS (SHORTAGE)$224,265 CEA 69.60%54.30 MW GVEA 100.00%78.00 MW Annual Participant Administrative Contribution 261,666.67 156.0 Monthly Contribution per Participant 21,805.56 Usage Rate per KWH 0.01308$ Capacity Rate $3.13 Section 7.2.2 MINIMUM USAGE CONTRACT VALUE ALASKA INTERTIE FISCAL YEAR 2025 ENERGY PROJECTION TOTAL INTERTIE PROJECTED ENERGY USAGE Usage estimate reduced by 1/12 of Total for rate calculations Page 8 of 8 Alaska Intertie FY25 Proposed Budget Annual System Demand 21-22 22-23 23-24 3 YR AVG. SOUTHERN UTILITY PARTICIPANTS (MW) CEA 349.8 343.8 322.9 338.8 MW APPROVED APPROVED APPROVED APPROVED APPROVED MEA 146.0 147.0 150.7 147.9 MW 6/30/2025 6/30/2024 6/30/2023 6/30/2022 6/30/2021 UNITS FY25 FY24 FY23 FY22 FY21 USAGE KWH 188,736,000 251,476,000 415,247,000 187,902,000 187,902,000 OPERATING BUDGET $2,957,100 3,710,200 2,544,100 1,992,890 2,007,385 MITCR KW 156,000 156,000 156,000 156,100 156,000 TOTAL 486.7 MW ENERGY (A)$.000/KWH $0.01308 $0.01232 $0.00512 $0.00886 $0.00892 NORTHERN UTILITY PARTICIPANTS (MW) CAPACITY (B)$/KW $3.13 $3.92 $2.69 $2.11 $2.12 GVEA 198.3 205.5 205.5 203.1 MW TOTAL 203.1 MW MITCR DETERMINATION FY 25 KWH CAP RATE CAP CHARGES MEA 30.40%23.70 MW 23,700 $3.13 74,181.00 CEA 69.60%54.30 MW 54,300 $3.13 169,959.00 GVEA 100.00%78.00 MW 78,000 $3.13 244,140.00 156.00 MW 156,000 488,280.00 (A) See Section 7.2.5 AK Intertie Agreement (B) See Section 7.2.6 AK Intertie Agreement MINIMUM INTERTIE TRANSFER CAPABILITY RIGHTS (MITCR) DETERMINATION FOR FISCAL YEAR 2025 Page 1 of 4 Alaska Energy Authority AK Intertie Budget to Actual Revenues and Expenses 07/01/2023 to 02/29/2024 Page 2 of 4 FY24 Approved Budget BUDGET 07/01/2023 - 02/29/2024 Actuals YTD Actuals as a % of Total Annual Budget OVER (UNDER) YTD Variance Revenue From Utilities AKI-GVEA 3,631,114 2,484,635 3,201,341 88%716,706 AKI-CEA 471,717 386,606 386,606 82%- AKI-MEA 654,520 473,227 481,987 74%8,760 Total Revenue From Utilities 4,757,352 3,344,468 4,069,934 86%725,466 Interest - - 47,604 0%47,604 Total Revenues 4,757,352 3,344,468 4,117,538 87%773,070 Total Revenues 4,757,352 3,344,468 4,117,538 87%773,070 56600 Misc Transmission Expense Alaska Energy Authority AK Intertie-Cell Phone Comm. Svc. for Wx Monitorng 13,000 8,667 7,005 54%(1,661) AK Intertie-Miscellaneous Studies as Needed 516,000 344,000 28,200 5%(315,800) Alaska Energy Authority Total 529,000 352,667 35,205 7%(317,461) Golden Valley Electric AK Intertie-Private Line Telephone Service SCADA 6,000 4,000 - 0%(4,000) Golden Valley Electric Total 6,000 4,000 - 0%(4,000) 56601 Weather Monitoring Batteries Alaska Energy Authority AK Intertie-SLMS Support & Intertie Ground Patrol 175,000 116,667 91,609 52%(25,058) Alaska Energy Authority Total 175,000 116,667 91,609 52%(25,058) 56700 Rents Alaska Energy Authority AK Intertie-Alaska Railroad 1,000 667 1,000 100%333 Alaska Energy Authority Total 1,000 667 1,000 100%333 Matanuska Electric Association AK Intertie-Talkeetna Storage 7,200 4,800 4,200 58%(600) Matanuska Electric Association Total 7,200 4,800 4,200 58%(600) 56900 Maintenance of Structures Matanuska Electric Association AK Intertie-Maintenance of Structures 150,000 100,000 - 0%(100,000) Matanuska Electric Association Total 150,000 100,000 - 0%(100,000) 57000 Maintenance of Station Equip Chugach Electric Association AK Intertie-Teeland Substation 175,000 116,667 85,468 49%(31,199) AK Intertie-Douglas Substation Communications - - 1,554 0%1,554 Chugach Electric Association Total 175,000 116,667 87,021 50%(29,646) Golden Valley Electric AK Intertie-Healy, Cantwell, Goldhill 125,000 83,333 - 0%(83,333) AK Intertie-Cantwell 4S2 Switch Repair 306,000 204,000 - 0%(204,000) AK Intertie-Capacitor Spares 20,000 13,333 - 0%(13,333) Golden Valley Electric Total 451,000 300,667 - 0%(300,667) Matanuska Electric Association AK Intertie-Douglas Substation 25,000 16,667 3,118 12%(13,549) Matanuska Electric Association Total 25,000 16,667 3,118 12%(13,549) 57100 Maint of OH Lines Golden Valley Electric AK Intertie-Northern Maintenance 150,000 100,000 - 0%(100,000) AK Intertie-Landing Pads 75,000 50,000 - 0%(50,000) Golden Valley Electric Total 225,000 150,000 - 0%(150,000) AK Intertie-Special Patrols (Incl Foundation Insp)- - 6,510 0%6,510 AK Intertie-Southern Maint. (Incl Ground Insp)140,000 93,333 - 0%(93,333) AK Intertie-Equipment Repair & Replacement 350,000 233,333 167,443 48%(65,890) Matanuska Electric Association Total 490,000 326,667 173,953 36%(152,713) ALASKA ENERGY AUTHORITY AK INTERTIE BUDGET TO ACTUAL REVENUE AND EXPENSES FOR THE PERIOD 07/01/2023 THROUGH 02/29/2024 Page 3 of 4 FY24 Approved Budget BUDGET 07/01/2023 - 02/29/2024 Actuals YTD Actuals as a % of Total Annual Budget OVER (UNDER) YTD Variance ALASKA ENERGY AUTHORITY AK INTERTIE BUDGET TO ACTUAL REVENUE AND EXPENSES FOR THE PERIOD 07/01/2023 THROUGH 02/29/2024 57101 Extra Ord Maint of OH Lines Golden Valley Electric AK Intertie-Re-level Structures & Adjust Guys 80,000 53,333 - 0%(53,333) Golden Valley Electric Total 80,000 53,333 - 0%(53,333) 57102 Maint OH Lines-ROW Clearing AK Intertie-Northern ROW Clearing 550,000 366,667 - 0%(366,667) AK Intertie-Northern ROW Remote Sensing 400,000 266,667 - 0%(266,667) Repair Tower 531 Foundation 150,000 100,000 - 0%(100,000) Repair Tower 532 Foundation 150,000 100,000 - 0%(100,000) Golden Valley Electric Total 1,250,000 833,333 - 0%(833,333) Matanuska Electric Association AK Intertie-Southern ROW Clearing 500,000 333,333 - 0%(333,333) AK Intertie-Southern ROW Remote Sensing 125,000 83,333 132,165 106%48,832 Matanuska Electric Association Total 625,000 416,667 132,165 21%(284,502) 58302 Operating Committee Exp-Legal Alaska Energy Authority AK Intertie-IMC Admin Cost (Audit, Meeting, Legal)- - 5,445 0%5,445 Alaska Energy Authority Total - - 5,445 0%5,445 58306 Misc Admin Alaska Energy Authority AK Intertie-IMC Admin Cost (Audit, Meeting, Legal)20,000 13,333 7,236 36%(6,097) Alaska Energy Authority Total 20,000 13,333 7,236 36%(6,097) 58401 Insurance Premiums Alaska Energy Authority AK Intertie-Insurance 22,200 14,800 22,673 102%7,873 Alaska Energy Authority Total 22,200 14,800 22,673 102%7,873 Matanuska Electric Association AK Intertie-Insurance 14,800 9,867 - 0%(9,867) Matanuska Electric Association Total 14,800 9,867 - 0%(9,867) Total Total Expense 4,246,200 2,830,800 563,625 13%(2,267,175) Total Operating Expenses 4,246,200 2,830,800 563,625 13%(2,267,175) 71001 Total Expense, Budget Alaska Energy Authority Administrative Support Services 230,000 153,333 135,078 59%(18,255) Alaska Energy Authority Total 230,000 153,333 135,078 59%(18,255) Total Total Expense 230,000 153,333 135,078 59%(18,255) Total AEA Administration Expenses 230,000 153,333 135,078 59%(18,255) Total Expenses 4,476,200 2,984,133 698,704 16%(2,285,429) Surplus (Shortage)281,152 360,335 3,418,835 1216%3,058,500 Page 4 of 4 Alaska Intertie FY24 Budget to Actuals Status Report for the Period 07/01/2023 through 02/29/2024 Budgeted Usage Actual Usage to Date GVEA MEA CEA TOTAL GVEA MEA CEA TOTAL MONTH MWH MWH MWH MWH MONTH MWH MWH MWH MWH Jul 11,500 1,993 - 13,493 Jul 21,896 2,018 - 23,914 Aug 13,600 2,034 - 15,634 Aug 18,254 2,288 - 20,542 Sep 14,050 1,972 - 16,022 Sep 19,556 2,225 - 21,781 Oct 23,500 2,036 - 25,536 Oct 28,980 2,109 - 31,089 Nov 25,190 2,273 - 27,463 Nov 40,892 2,139 - 43,031 Dec 24,990 2,494 - 27,484 Dec 46,492 2,461 - 48,953 Jan 25,470 2,495 - 27,965 Jan 32,601 2,519 - 35,120 Feb 24,740 2,043 - 26,783 Feb 12,498 2,292 - 14,790 Mar 21,230 2,158 - 23,388 Mar - - - - Apr 13,470 1,943 - 15,413 Apr - - - - May 20,380 1,871 - 22,251 May - - - - Jun 31,070 1,835 - 32,905 Jun - - - - TOTAL 249,190 25,147 - 274,337 TOTAL 221,169 18,051 - 239,220 INTERTIE PROJECTED ENERGY USAGE TO DATE (MWH)153,597 INTERTIE ACTUAL ENERGY USAGE TO DATE (MWH) 239,220 Budgeted Operating Costs for the Period 2,830,800$ Actual Operating Costs for the Period 563,625$ (based on amended budget) Budgeted Usage Revenue for the Period 1,892,315$ Actual (Billed) Usage Revenue for the Period 2,764,978$ (budgeted rate * projected usage)(budgeted rate * actual usage) Estimated Budgeted Energy Rate per MWH 15.39$ (based on budgeted costs and usage) Annual Budgeted Energy Rate (Billed Rate)12.32$ Projected Actual Energy Rate per MWH 1.97$ (based on minimum contract value)(based on actual costs and usage) Intertie Management Committee Meeting IOC Report May 3, 2024 1.Intertie Operating Committee a.In February GVEA submitted two grant applications on behalf of the IMC to AEA. Both of those grants have been approved by AEA. GVEA is planning to manage both grants for the IMC. For the Alaska Intertie Snow Load Remediation grant the design, permitting, and material procurement are scheduled to run through the end of 2024. Construction is planned over three years, starting in 2025 and ending in 2027. Each year construction is anticipated to start in May and be completed in October. Total cost for this work is estimated at $13,760,000, of which $10,320,00 will be paid for by the grant and the remainder through the IMC as outlined in the proposed 2025 budget. For the Alaska Railbelt Synchorphasor grant the initial phase of work will run through 2025 and includes the basic setup of hardware and EPG’s software throughout the Railbelt. This work will include setup and commissioning of servers and communication links between utilities. Phase two of the project will run from 2026 through 2028 and includes the addition of phasor measurement units (PMUs) at substations that were not included in the initial phase. The final phase will run from 2028 to the second quarter of 2029 and it will include a review of the system and additional PMUs as necessary to ensure optimal functionality of the system. Total cost for this work is estimated at $2,200,000 of which $1,650,000 will be paid for by the grant and the remainder through the IMC as outlined in the proposed 2025 budget. b.The draft primary frequency response policy was reviewed at the IOC meeting and an updated draft is anticipated by the next IOC meeting. If there are no significant changes to the draft policy, it will be moved to the IMC for review in June. c.The IOC is reviewing a draft RFP for an IBR study that the SSS plans to execute. If there are no substantial changes, the RFP for the study should be issued in July. Funding for this study is included in the proposed 2025 IMC budget. d.Renewable IPP currently has a 6-megawatt solar installation along Hawk Lane just north of Big Lake. They are looking at expanding the site to include an additional 25-30 megawatts of solar. The expansion would potentially encroach on the Alaska Intertie for approximately one and half miles, impacting structures 42 through 48. These structures are steel X-frames or three pole angle structures. Their footprint ranges from approximately 35’-45’ in width depending on the structure type. The total ROW width through this area is 100’. The operational crews that maintain and clear this section of line recommended an additional 15’ on both sides of the structures to allow heavy equipment proper access. In addition, electrical clearance, assuming the panels are classified as a “building”, requires approximately 17’ of clearance from the line to the corner of the panel under NESC table 234-1. Based on both the electrical clearances and operational requirements, no encroachment into the ROW is recommended at this time. 2.System Studies Subcommittee a.The SSS has been working with EPS to update the governor model in PSS/e for Bradely Lake. EPS has requested $57,500 in additional funding to update the model, as outlined in Attachment 1. Funding for this change order has been included in the proposed 2025 IMC budget. Once the funding is approved, the IOC plans to recommend approval of the change order. b.An RFP has been issued by the SSS to look at what the system impacts would be if the Alaska Intertie was upgraded to 230 KV. The study will look at capacity, stability, regulation, and other key factors that may be impacted by the upgrade. Proposals for the study have been received and are under evaluation. This work has been included in the IMC’s proposed 2025 budget. Attachment 1 – Bradely Lake PSS/e Governor Model Tuning - Change Order #1 WWW.EPSINC.COM PHONE (425) 296-5411  4020 148TH AVE N.E., SUITE C, REDMOND, WA 98052 Mr. John Bell Chugach Electric Association, Inc. 5601 Electron Drive, Bldg. A Anchorage, AK 99518 March 20, 2024 Subject: Bradley Lake PSS/e Governor Model Tuning – Change Order #1 Mr. Bell, Electric Power Systems (EPS) is pleased to present a change order proposal to Chugach Electric Association, Inc. (CEA) and the Railbelt System Studies Subcommittee (SSS) for the model benchmarking and tuning study of the PSS/e turbine / governor model for the Bradley Lake Hydro plant, per your request. This change order pertains to the model tuning study performed in 2023 related to the oscillations observed along the Kenai Tie during over-frequency conditions. Scope of Work The following is the scope of work as discussed during our last conference call. As requested, we have broken the scope into two main tasks. Task One - Modeling 1. Reinvestigate the overspeed event of June 2021 where large scale undamped oscillations were observed along the Kenai Tie. Investigate an alternate approach to modifying the Bradley Lake turbine governor model within PSS/e as compared to the previous approach. The previous approach involved changes to the divider positioning PID control loop parameters. The proposed approach in this change order will involve modifications to the divider / needle / turbine power curves, as discussed in our meeting. 2. Re-run the three events from the previous report and compare the simulation results to the available recordings. One of the goals in this additional work is to eliminate the intra-plant oscillations observed in the event 2 simulations from the previous study. 3. Document the findings on electronic form, including python scripts for PSS/e that apply the recommended changes to the Bradley Lake model. Task Two – Bradley Lake Model Documentation 1. Develop detailed documentation for the existing Bradley Lake turbine / governor model. This includes tables for all model parameters, block diagrams where applicable, description of all the control modes, and instructions for using the model within PSS/e including how to initialize the model in different control modes. BRADLEY LAKE PSS/E GOVERNOR MODEL TUNING – CHANGE ORDER #1 March 20, 2024 Page 2 WWW.EPSINC.COM Cost Our cost estimate for this effort is detailed below, broken into main tasks and sub-tasks. The total time and materials estimated cost is $24,420.00 for Main Task One and $33,000.00 for Main Task Two. This is a not-to-exceed cost estimate. Any additional scope of work will be discussed prior to performing that work and will be subject to your approval. We expect to complete this study within approximately 2 months after receiving a notice-to-proceed. #Task Staff Engineer Hours Principal Engineer Hours Cost Main Task One 1.1 Retune event 1 60 20 $ 13,200.00 1.2 Run other events and compare 30 5 $ 5,280.00 1.3 Document findings and recommendations 25 10 $ 5,940.00 Main Task One Total 115 35 $ 24,420.00 Main Task Two 2.1 Detailed Documentation of Bradley Lake Model 150 50 $ 33,000.00 Total - Both Tasks 265 85 57,420.00$ Note: We will perform this study using the PSS/e version 34 models. All changes we recommend and all documentation will be applicable to version 36 of PSS/e. When the Railbelt model is updated to version 36 of PSS/e, all recommended changes to the Bradley Lake model will be applied to the version 36 database, subject to approval by the SSS committee. If you have any questions, or if I have not fully described the scope of work as we discussed, please feel free to give me a call at 425-296-5411. Sincerely, James. W. Cote, Jr., Ph.D., P.E. Principal Engineer Intertie Management Committee Meeting Operator Report May 3, 2024 1. Alaska Intertie usage report a. MWh usage – Measured at Douglas Substation, YTD GVEA MEA Total i. July – March FY24 238,539 20,338 258,877 ii. July – March FY23 191,919 20,404 212,323 iii. Delta - FY24 to FY23 24.29% -0.32% 21.93% 2. Alaska Intertie trips to report No Alaska Intertie outages to report 3. IOC quarterly Reliability Report For generation trips or transmission line trips where the loss of load is known, the Railbelt-wide frequency response is calculated. The magnitude of the tripped power and the change in frequency from the pre-trip value to the peak or nadir are used to calculate the MW/0.1Hz value often known as ‘Beta’. Chugach has calculated the Beta for several events and the table of the results is pasted below. Events without data for the MW magnitude of the trip were excluded, as were events that did not cause a frequency deviation greater than 0.2 Hz. Event Date MW Tripped Pre-Trip Frequency (Hz) High /Low Frequency (Hz) Frequency Response (MW/0.1Hz) GVEA, Healy 2 Trip 3/21/2024 21.7 60.006 59.785 9.8 GVEA, Zehnder GT1 Trip 3/27/2024 Unknown 60.022 59.787 N/A GVEA, Healy 2 Trip 4/10/2024 44.2 59.993 59.432 7.9 AEA, Bradley 2 Trip * 4/20/2024 47.91 59.996 59.150 5.7 • Significant oscillations on this event, see attachment.