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Home My WebLink About2025-02-18 IMC Agenda and docsINTERTIE MANAGEMENT COMMITTEE (IMC) SPECIAL MEETING February 18, 2025 8:00 am Alaska Energy Authority Board Room 813 W Northern Lights Blvd, Anchorage, AK 99503 Join the meeting now Meeting ID: 237 125 589 221 Passcode: 9bF7KY9C Or dial in by phone 1-907-313-5807 Conf Code 287 754 263# 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 – None 7.NEW BUSINESS 8.OLD BUSINESS A.FY 2025 Budget Amendment 9.MEMBERS COMMENTS 10.NEXT MEETING DATE – March 21, 2025 11.ADJOURNMENT Alaska Energy Authority Alaska Intertie Date: January 17, 2025 Proposed FY2025 Budget Amendment 1 Page 1 of 10 Proposed FY2025 Budget Amendment 1 Summary ALASKA ENERGY AUTHORITY ALASKA INTERTIE Proposed FY2025 Budget Amendment 1 Contents Description Page # Budget Summary 3 O&M Budget 4-5 Grant Budget 6 Proposed FY25 Amend 1 Usage Projection 7 Approved FY25 Usage Projection 8 Proposed FY25 Amend 1 AK Intertie MITCR 9 Approved FY25 AK Intertie MITCR 10 Page 2 of 10 Proposed FY2025 Budget Amendment 1 Proposed Budget Summary PROPOSED FY25 AMEND 1 Revenues O&M Grant Total Total GVEA Total CEA Total MEA Total HEA Total Revenue from Operations 4,345,270 - 4,345,270 3,061,282 462,878 821,110 - 4,345,270 Grant Match - 120,195 120,195 101,745 5,018 13,433 4,805 120,195 4,345,270 120,195 4,465,465 3,163,027 467,896 834,542 4,805 4,465,465 Expenses Operations 3,271,100 - 3,271,100 Admin 825,000 - 825,000 Grant - 120,195 120,195 4,096,100 120,195 4,216,295 Surplus/(Shortage) 249,170 - 249,170 APPROVED BUDGET 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) (Total Paid by Utilities) Page 3 of 10 Proposed FY2025 Budget Amendment 1 FY25 Approved Proposed Proposed FY23 FY24 Actual FY25 FY25 FY25 Actual Actual @11/30/24 Budget Changes Budget Amend 1 REVENUES GVEA 1,632,539 3,896,647 1,369,915 2,838,837 222,446 3,061,282 CEA 405,435 471,717 278,987 431,626 31,252 462,878 MEA 450,409 674,787 325,349 695,903 125,207 821,110 INTEREST 58,625 106,406 69,470 - - - OTHER 27,357 113,875 - TOTAL REVENUES 2,574,364 5,263,432 2,043,721 3,966,365 378,905 4,345,270 EXPENSES FERC 562 - Station Operation Expenses GVEA - Substation Electricity Usage 478 - - - - - 478 - - - - - FERC 566 - Miscellaneous Transmission Expense Private Line Telephone Service for AKI SCADA (GVEA)5,788 2,315 4,001 6,000 - 6,000 Cell Phone Comm. Svc for Weather Monitoring (Verizon)11,983 12,007 - 13,000 - 13,000 SLMS Support and Intertie Ground Patrol 145,346 133,342 - 175,000 - 175,000 163,116 147,664 4,001 194,000 - 194,000 FERC 567 - Transmission Expenses - Rents Rents - Alaska Railroad 1,500 1,000 1,000 1,000 - 1,000 MEA - Talkeetna Storage 7,200 7,200 3,000 7,200 - 7,200 Equipment Rental 102 - - - - - 8,802 8,200 4,000 8,200 - 8,200 FERC 569 Maintenance of Structures MEA - Maintenance of Structures - 5,204 - 550,000 (400,000) 150,000 - 5,204 - 550,000 (400,000) 150,000 FERC 570 - Maintenance of Station Equipment GVEA - HLSB17 Sync PT Replacement - - - 25,000 - 25,000 GVEA - Healy, Cantwell, Goldhill 141,248 80,624 - 64,500 - 64,500 GVEA - SCADA Maintenance Healy, Cantwell, Gold Hill 1,120 - - - - GVEA - Replace Healy Substation Breaker B17 - - - 350,000 - 350,000 GVEA - Healy and Goldhill Digital Fault Recorders - 6,046 - - - - GVEA - Gold Hill SVC Cooling - 2,059 - - - - GVEA - Cantwell Install Breakers or Load Break Switches - - - 306,000 344,000 650,000 GVEA - Cantwell 4S2 Switch Repair 43,217 748 - - - - GVEA - Perform Maintenance, repaint Reactors Healy SVC Yard 4,472 - - - - - GVEA - Intertie - SVC Project - - 50,000 70,000 120,000 CEA - Teeland Substation Communication - 6,787 - 5,000 - 5,000 CEA - Teeland Substation 74,128 168,737 56,712 170,000 - 170,000 CEA - Douglas Substation Communication - - 1,578 2,400 - 2,400 MEA - Douglas Substation - 5,181 5,807 - 300,000 300,000 MEA - Douglas Substation 138 kV BKR Inspections - - - 25,000 - 25,000 263,065 271,301 64,097 997,900 714,000 1,711,900 FERC 571 - Maintenance of Overhead Lines GVEA - Northern Maintenance 99,464 99,237 - - - - GVEA - Northern ROW Clearing 328,252 626,189 - 550,000 - 550,000 GVEA - Northern ROW Remote Sensing and Analysis - 335,516 - - - - GVEA - Landing Pads - - - 75,000 - 75,000 GVEA - Repair Tower 531 Foundation - 154,915 - - - - GVEA - Repair Tower 532 Foundation - 154,915 - - - - Page 4 of 10 GVEA - Helicopter Patrols - - - 80,000 - 80,000 MEA - Special Patrols [Incl Helicopter Inspections]11,603 6,510 19,982 15,000 - 15,000 MEA - Southern Maint (Incl Ground and Climbing Inspect)78,729 - - 140,000 - 140,000 MEA - Southern ROW Clearing 525,520 287,124 47,854 300,000 - 300,000 MEA - Southern ROW Remote Sensing and Analysis - 104,849 5,561 10,000 - 10,000 MEA - Equipment Repair and Replacement 803,393 152,755 - - - - 1,846,961 1,922,010 73,397 1,170,000 - 1,170,000 FERC 924 - Property Insurance AK Intertie - Insurance 40,178 42,558 14,476 37,000 - 37,000 40,178 42,558 14,476 37,000 - 37,000 Intertie Operating Costs Total 2,322,601 2,396,938 159,971 2,957,100 314,000 3,271,100 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 190,236 254,493 103,037 250,000 - 250,000 190,236 254,493 103,037 250,000 - 250,000 FERC 920 - IMC Administrative Costs IMC Administrative Costs (Audit, meetings, legal) 14,579 20,672 4,697 20,000 - 20,000 14,579 20,672 4,697 20,000 - 20,000 FERC 566 - Miscellaneous Transmission Expense Misc Studies: System Reserves Study (IBR), PSS/E maint, 230 kV Upgrade System Impact Study 150,368 57,544 5,725 515,000 - 515,000 LIDAR study (complete lidar, vegetation, PLS CADD file with drawings, structure/foundation movement, infrared, and imaging) - - - - 40,000 40,000 Synchrophaser System (Moved to GRANT BUDGET worksheet)- - - - - 150,368 57,544 5,725 515,000 40,000 555,000 Intertie Administration Costs Total 355,182 332,708 113,459 785,000 40,000 825,000 TOTAL EXPENSE 2,677,783 2,729,646 273,430 3,742,100 354,000 4,096,100 SURPLUS (SHORTAGE) (103,419) 2,533,786 1,770,292 224,265 24,905 249,170 Page 5 of 10 Proposed FY2025 Budget Amendment 1 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 & $500k in-kind in-house labor) AEA to revise per agreed payment PROPOSED FY25 AMEND 1 (Anticipating January 2025 start) Total Match Amount 75,000$ Percent FY25 Power Purchaser Share Match Year Project Total Cost Grant Reimbursement Grant Match (Cash and In-Kind) 1 $300,000 $225,000 $75,000 GVEA 81.95% 61,463 2 $3,497,845 $2,623,384 $874,461 CEA 6.69% 5,018 3 $3,497,845 $2,623,384 $874,461 MEA 11.36% 8,520 4 $3,497,845 $2,623,384 $874,461 5 $2,965,356 $2,224,017 $741,339 100.00%75,000 Total $13,758,890 $10,319,167 $3,439,722 APPROVED BUDGET Total Match Amount 491,167$ Percent FY25 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 FY25 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 DOE Resiliency Grant - AK Intertie Snow Load Resiliency Page 6 of 10 Proposed FY2025 Budget Amendment 1 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 $206,953 $36,869 $0 $269,880 $82,002 $187,878 $68,750 $852,332 Aug 14,077 2,295 0 16,372 $237,335 $38,692 $0 $68,750 $344,777 Sep 14,766 2,210 0 16,976 $248,951 $37,262 $0 $68,750 $354,964 Oct 27,634 2,165 0 29,799 $465,913 $36,494 $0 $68,750 $571,156 Nov 27,147 2,339 0 29,486 $457,692 $39,443 $0 $68,750 $565,884 Dec 26,405 2,633 0 29,038 $445,182 $44,393 $0 $68,750 $558,325 Jan 8,460 2,458 0 10,918 $142,636 $41,444 $0 $68,750 $252,830 Feb 0 2,261 0 2,261 $0 $38,120 $0 $68,750 $106,870 Mar 5,060 2,466 0 7,526 $85,312 $41,569 $0 $68,750 $195,631 Apr 5,310 2,258 0 7,568 $89,527 $38,067 $0 $68,750 $196,343 May 4,060 2,321 0 6,381 $68,452 $39,139 $0 $68,750 $176,340 Jun 4,060 1,935 0 5,995 $68,452 $32,616 $0 $68,750 $169,817 TOTAL 0 149,253 27,527 0 176,780 $2,516,402 $464,108 $0 $269,880 $82,002 $187,878 $825,000 $4,345,270 Total Energy: $2,980,510 Total Capacity : $539,760 176,780 MWH 162,048 MWH 204,984 MWH TOTAL MWH REVENUE $4,345,270 O&M BUDGET - Operating 3,271,100 - O&M BUDGET - Administrative 825,000 UTILITY FY 25 TOTAL O&M BUDGET 4,096,100 MEA 30.40% 23.70 MW SURPLUS (SHORTAGE) $249,170 CEA 69.60% 54.30 MW GVEA 100.00% 78.00 MW Annual Participant Administrative Contribution 275,000.00 156.0 Monthly Contribution per Participant 22,916.67 Usage Rate per KWH 0.01686$ Capacity Rate $3.46 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 Proposed FY25 Amend 1 Usage Projection Page 7 of 10 Proposed FY2025 Budget Amendment 1 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 Approved FY25 Usage Projection 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 10 Proposed FY2025 Budget Amendment 1 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 06/30/2025 06/30/2024 06/30/2023 06/30/2022 06/30/2021 UNITS FY25 FY24 FY23 FY22 FY21 USAGE KWH 162,048,000 251,476,000 415,247,000 187,902,000 187,902,000 OPERATING BUDGET $ 3,271,100 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 $0.01686 $0.01232 $0.00512 $0.00886 $0.00892 NORTHERN UTILITY PARTICIPANTS (MW) CAPACITY (B)$/KW $3.46 $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 $3.46 82,002.00 CEA 69.60% 54.30 MW 54,300 $3.46 187,878.00 GVEA 100.00%78.00 MW 78,000 $3.46 269,880.00 156.00 MW 156,000 539,760.00 (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 Proposed FY25 Amend 1 AK Intertie MITCR Page 9 of 10 Proposed FY2025 Budget Amendment 1 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 06/30/2025 06/30/2024 06/30/2023 06/30/2022 06/30/2021 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 Approved FY25 AK Intertie MITCR Page 10 of 10