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Home My WebLink About2025-05-02 IMC Agenda and docs INTERTIE MANAGEMENT COMMITTEE (IMC) REGULAR MEETING May 2, 2025 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 – March 21, 2025 7. NEW BUSINESS A. FY26 Budget 8. OLD BUSINESS A. Repairs to Structure 616 9. COMMITTEE REPORTS A. Budget to Actuals Mark Ziesmer B. IOC Report Jon Sinclair C. Operator Report Mike Miller 10. EXECUTIVE SESSION – (Bylaws Section 5.11.3 (a)) To discuss confidential matters which by law are required to be confidential. 11. MEMBERS COMMENTS 12. NEXT MEETING DATE – June 20, 2025 at 9:00 am 13. ADJOURNMENT Alaska Energy Authority Alaska Intertie Date: May 2, 2025 Proposed FY2026 Budget Page 1 of 8 ALASKA ENERGY AUTHORITY ALASKA INTERTIE Proposed FY2026 Budget Contents Description Page # Budget Summary 3 O&M Budget 4-5 Grant Budget 6 Usage Projection 7 AK Intertie MITCR 8 Page 2 of 8 Proposed FY2026 Budget Budget Summary Revenues O&M Grant Total Total GVEA Total CEA Total MEA Total HEA Total Revenue from Operations 4,023,927 - 4,023,927 2,495,127 371,920 1,156,880 - 4,023,927 Grant Match - 291,558 291,558 238,795 18,847 32,970 946 291,558 4,023,927 291,558 4,315,485 2,733,922 390,767 1,189,850 946 4,315,485 Expenses Operations 3,212,700 - 3,212,700 Admin 567,000 - 567,000 Grant - 291,558 291,558 3,779,700 291,558 4,071,258 Surplus/(Shortage) 244,227 - 244,227 (Total Paid by Utilities) Page 3 of 8 Proposed FY2026 Budget data @ 2/7/25 FY25 Approved Proposed FY22 FY23 FY24 Actual FY25 FY26 Actual Actual Actual @12/31/24 Amend Budget Budget REVENUES GVEA 2,075,166 1,632,539 3,896,647 1,641,366 3,061,282 2,495,127 CEA 265,259 405,435 471,717 300,792 462,878 371,920 MEA 413,239 450,409 674,787 429,442 821,110 1,156,880 INTEREST 2,241 58,625 106,406 81,092 - - OTHER - 27,357 113,875 - TOTAL REVENUES 2,755,905 2,574,364 5,263,432 2,452,692 4,345,270 4,023,927 EXPENSES FERC 562 - Station Operation Expenses GVEA - Substation Electricity Usage 45,889 478 - - - - 45,889 478 - - - - FERC 566 - Miscellaneous Transmission Expense Private Line Telephone Service for AKI SCADA (GVEA)5,556 5,788 2,315 - 6,000 6,000 Cell Phone Comm. Svc for Weather Monitoring (Verizon)12,025 11,983 12,007 5,001 13,000 13,000 SLMS Support and Intertie Ground Patrol 154,947 145,346 133,342 - 175,000 175,000 172,528 163,116 147,664 5,001 194,000 194,000 FERC 567 - Transmission Expenses - Rents Rents - Alaska Railroad 700 1,500 1,000 1,000 1,000 1,000 MEA - Talkeetna Storage 7,200 7,200 7,200 3,600 7,200 7,200 Equipment Rental 375 102 - - - - 8,275 8,802 8,200 4,600 8,200 8,200 FERC 569 Maintenance of Structures MEA - Insulator & Str Replacement (Teeland to Douglas)- - - - - 350,000 MEA - Maintenance of Structures - - 5,204 - 150,000 100,000 - - 5,204 - 150,000 450,000 FERC 570 - Maintenance of Station Equipment GVEA - HLSB17 Sync PT Replacement - - - - 25,000 50,000 GVEA - Healy, Cantwell, Goldhill 63,163 141,248 80,624 13,100 64,500 54,500 GVEA - SCADA Maintenance Healy, Cantwell, Gold Hill - 1,120 - - 10,000 GVEA - Replace Healy Substation Breaker B17 - - - 285,736 350,000 - GVEA - Healy and Goldhill Digital Fault Recorders 53,255 - 6,046 - - - GVEA - Gold Hill SVC Cooling 460 - 2,059 - - - GVEA - Cantwell Install Breakers or Load Break Switches 182,606 - - - 650,000 - GVEA - Cantwell 4S2 Switch Repair - 43,217 748 4,084 - - GVEA - Perform Maintenance, repaint Reactors Healy SVC Yard - 4,472 - - - - GVEA - Perform Maintenance, repaint Reactors Gold Hill SVC Yard 7,452 - - - - - GVEA - Mobile Substation Site - - - - - 100,000 GVEA - SVC Insulator Replacements - Helay and Gold hill - - - - - 3,000 GVEA - SVC Capacitor Spares - - - 38,499 - - GVEA - Redesign Healy SVC 138 kV Interconnection - - - - - 50,000 GVEA - Intertie - SVC Project - - - 120,000 - CEA - Teeland Substation Communication - - 6,787 - 5,000 5,000 CEA - Teeland Substation 115,365 74,128 168,737 60,202 170,000 180,000 CEA - Douglas Substation Communication - - - 1,578 2,400 5,000 MEA - Douglas Substation - - 5,181 5,807 300,000 150,000 MEA - Douglas Substation 138 kV BKR Inspections - - - - 25,000 - CEA - Telecomm Support (Douglas, Teeland, Anc-Fbks Leased Circuits)1,742 - - - - 100,000 424,043 263,065 271,301 409,006 1,711,900 707,500 Page 4 of 8 FERC 571 - Maintenance of Overhead Lines GVEA - Northern Maintenance 107,641 99,464 99,237 50,058 - 103,000 GVEA-Private Line Telephone Service - - - - 85,000 GVEA - Northern ROW Clearing - 28 miles of ROW north of Indian River 68,882 328,252 626,189 33,148 550,000 600,000 GVEA - Northern ROW Clearing - Remote Sensing Analysis - - 335,516 - - - GVEA - Landing Pads - - - - 75,000 60,000 GVEA - Re-level Structures & Adjust Guys - - - - - - GVEA - Repair Tower 616 Foundation - - - - 500,000 GVEA - Repair Tower 531 Foundation - - 154,915 - - - GVEA - Repair Tower 532 Foundation - - 154,915 - - - GVEA - Helicopter Patrols - - - - 80,000 - MEA - Special Patrols [Incl Helicopter Inspections]599 11,603 6,510 19,982 15,000 50,000 MEA - Southern Maint (Incl Ground and Climbing Inspect)191,358 78,729 - - 140,000 125,000 MEA - Southern ROW Clearing 168,367 525,520 287,124 47,854 300,000 175,000 MEA - Southern ROW Remote Sensing and Analysis - - 104,849 5,561 10,000 10,000 MEA - Equipment Repair and Replacement 76,494 803,393 152,755 - - 100,000 613,341 1,846,961 1,922,010 156,603 1,170,000 1,808,000 FERC 924 - Property Insurance AK Intertie - Insurance 37,133 40,178 42,558 26,418 37,000 45,000 37,133 40,178 42,558 26,418 37,000 45,000 Intertie Operating Costs Total 1,301,209 2,322,601 2,396,938 601,628 3,271,100 3,212,700 FERC 920 - AEA Administrative Costs Personal Services, Travel and Other Costs 235,608 190,236 254,493 121,460 250,000 300,000 235,608 190,236 254,493 121,460 250,000 300,000 FERC 920 - IMC Administrative Costs IMC Administrative Costs (Audit, meetings, legal)29,276 14,579 20,672 4,697 20,000 20,000 29,276 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 145,327 150,368 57,544 7,500 515,000 180,000 LIDAR study (complete lidar, vegetation, PLS CADD file with drawings, structure/foundation movement, infrared, and imaging) - - - - 40,000 - PSSE Maintenance - - - - - 27,000 EPRI (Annual Cost)- - - - - 40,000 145,327 150,368 57,544 7,500 555,000 247,000 Intertie Administration Costs Total 410,211 355,182 332,708 133,657 825,000 567,000 TOTAL EXPENSE 1,711,420 2,677,783 2,729,646 735,285 4,096,100 3,779,700 SURPLUS (SHORTAGE) 1,044,485 (103,419) 2,533,786 1,717,407 249,170 244,227 Page 5 of 8 Proposed FY2026 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 & $500k in-kind in-house labor) AEA to revise per agreed payment (Anticipating May 2025 start??) 75,000$ Percent FY26 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 $13,758,891 $10,319,169 $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 & $500k in-kind in-house labor) AEA to revise budget for approved payment methods Total Match Amount 9,839$ HEA is contributing because they are receiving benefit from the Synchrophaser System (Railbelt wide) Percent FY26 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% 946 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% 7,927 2 $440,245 $9,839 $100,222 $330,183 CEA 0.00% - 3 $440,245 $9,839 $100,222 $330,183 MEA 10.87% 967 4 $440,245 $9,839 $100,222 $330,183 5 $440,245 $9,839 $100,222 $330,183 100.00%8,893 Total $2,201,225 $49,195 $501,110 $1,650,915 USDA CWDG - Integrated Vegetation Management MEA submittal to USDA ($3.7M grant with 25% match requirement) (Anticipating May 2025 start??) Total Match Amount $206,719 Percent FY26 Power Purchaser Share Match Year Project Total Cost Grant Reimbursement Grant Match (Cash and In-Kind) 1 $826,875 $620,156 $206,719 GVEA 81.95% 169,406 2 $561,974 $421,481 $140,493 CEA 6.69% 13,830 3 $1,411,322 $1,058,492 $352,830 MEA 11.36% 23,483 4 $670,188 $502,641 $167,547 5 $277,145 $207,859 $69,286 100.00%206,719 Total $3,747,504 $2,810,629 $936,875 DOE Resiliency Grant - AK Intertie Snow Load Resiliency DOE Resiliency Grant - Synchrophasor Project - Five Year Average USDA CWDG Grant Page 6 of 8 Proposed FY2026 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 2,846 2,194 0 5,040 $94,316 $72,709 $0 $265,200 $82,280 $182,920 $47,250 $744,676 Aug 5,188 2,276 0 7,464 $171,930 $75,427 $0 $47,250 $294,607 Sep 2,177 2,143 0 4,320 $72,146 $71,019 $0 $47,250 $190,415 Oct 6,861 2,045 0 8,906 $227,374 $67,771 $0 $47,250 $342,395 Nov 8,868 2,158 0 11,026 $293,886 $71,516 $0 $47,250 $412,652 Dec 8,868 2,436 0 11,304 $293,886 $80,729 $0 $47,250 $421,865 Jan 9,537 2,446 0 11,983 $316,056 $81,060 $0 $47,250 $444,367 Feb 504 2,224 0 2,728 $16,703 $73,703 $0 $47,250 $137,656 Mar 838 2,365 0 3,203 $27,771 $78,376 $0 $47,250 $153,397 Apr 4,853 2,180 0 7,033 $160,828 $72,245 $0 $47,250 $280,324 May 4,853 2,299 0 7,152 $160,828 $76,189 $0 $47,250 $284,267 Jun 6,192 1,957 0 8,149 $205,203 $64,855 $0 $47,250 $317,308 TOTAL 0 61,585 26,723 0 88,308 $2,040,927 $885,600 $0 $265,200 $82,280 $182,920 $567,000 $4,023,927 Total Energy: $2,926,527 Total Capacity : $530,400 88,308 MWH 80,949 MWH 204,984 MWH TOTAL MWH REVENUE $4,023,927 O&M BUDGET - Operating 3,212,700 - O&M BUDGET - Administrative 567,000 UTILITY FY 26 TOTAL O&M BUDGET 3,779,700 MEA 31.00% 24.20 MW SURPLUS (SHORTAGE) $244,227 CEA 69.00% 53.80 MW GVEA 100.00% 78.00 MW Annual Participant Administrative Contribution 189,000.00 156.0 Monthly Contribution per Participant 15,750.00 Usage Rate per KWH 0.03314$ Capacity Rate $3.40 Section 7.2.2 MINIMUM USAGE CONTRACT VALUE ALASKA INTERTIE FISCAL YEAR 2026 ENERGY PROJECTION TOTAL INTERTIE PROJECTED ENERGY USAGE Usage estimate reduced by 1/12 of Total for rate calculations Page 7 of 8 Proposed FY2026 Budget Annual System Demand 22-23 23-24 24-25 3 YR AVG. SOUTHERN UTILITY PARTICIPANTS (MW) CEA 343.8 322.9 338.69 335.1 MW APPROVED APPROVED APPROVED APPROVED APPROVED MEA 147.0 150.7 154.2 150.6 MW 06/30/2026 06/30/2025 06/30/2024 06/30/2023 06/30/2022 UNITS FY26 FY25 FY24 FY23 FY22 USAGE KWH 80,949,000 162,048,000 251,476,000 415,247,000 187,902,000 OPERATING BUDGET $ 3,212,700 3,271,100 3,710,200 2,544,100 1,992,890 MITCR KW 156,000 156,000 156,000 156,000 156,100 TOTAL 485.7 MW ENERGY (A)$.000/KWH $0.03314 $0.01686 $0.01232 $0.00512 $0.00886 NORTHERN UTILITY PARTICIPANTS (MW) CAPACITY (B)$/KW $3.40 $3.46 $3.92 $2.69 $2.11 GVEA 205.5 205.5 204 205.0 MW TOTAL 205.0 MW MITCR DETERMINATION FY 25 KWH CAP RATE CAP CHARGES MEA 31.00% 24.20 MW 24,200 $3.40 82,280.00 CEA 69.00% 53.80 MW 53,800 $3.40 182,920.00 GVEA 100.00%78.00 MW 78,000 $3.40 265,200.00 156.00 MW 156,000 530,400.00 (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 2026 Page 8 of 8 Alaska Energy Authority AK Intertie Budget to Actual Revenues and Expenses 07/01/2024 to 03/31/2025 Page 1 of 4 FY25 Amended Budget Amended Budget 07/01/2024 - 03/31/2025 Actuals YTD Actuals as a % of Total Annual Budget Over (Under) YTD Variance Revenue From Utilities AKI-GVEA 3,061,282 2,766,102 2,338,233 76%(427,870) AKI-CEA 462,878 394,128 394,128 85%- AKI-MEA 821,110 642,539 620,782 76%(21,757) Total Revenue From Utilities 4,345,270 3,802,769 3,353,143 77%(449,627) Interest - - 99,441 0% 99,441 Other - - - 0%- Total Revenues 4,345,270 3,802,769 3,452,583 79%(350,186) Total Revenues 4,345,270 3,802,769 3,452,583 79%(350,186) 56600 Misc Transmission Expense Alaska Energy Authority AK Intertie-Cell Phone Comm. Svc. for Wx Monitorng 13,000 9,750 6,431 49%(3,319) AK Intertie-Miscellaneous Studies as Needed 555,000 416,250 41,517 7%(374,733) Alaska Energy Authority Total 568,000 426,000 47,948 8%(378,052) Golden Valley Electric AK Intertie-Private Line Telephone Service SCADA 6,000 4,500 - 0%(4,500) Golden Valley Electric Total 6,000 4,500 - 0%(4,500) 56601 Weather Monitoring Batteries Alaska Energy Authority AK Intertie-SLMS Support & Intertie Ground Patrol 175,000 131,250 18,971 11%(112,279) Alaska Energy Authority Total 175,000 131,250 18,971 11%(112,279) 56700 Rents Alaska Energy Authority AK Intertie-Alaska Railroad 1,000 750 1,000 100%250 Alaska Energy Authority Total 1,000 750 1,000 100%250 Matanuska Electric Association AK Intertie-Talkeetna Storage 7,200 5,400 4,800 67%(600) Matanuska Electric Association Total 7,200 5,400 4,800 67%(600) 56900 Maintenance of Structures Matanuska Electric Association AK Intertie-Maintenance of Structures 150,000 112,500 - 0%(112,500) Matanuska Electric Association Total 150,000 112,500 - 0%(112,500) 57000 Maintenance of Station Equip Chugach Electric Association AK Intertie-Teeland Substation 175,000 131,250 60,202 34%(71,048) AK Intertie-Douglas Substation Communications 2,400 1,800 1,578 66%(222) Chugach Electric Association Total 177,400 133,050 61,781 35%(71,269) Golden Valley Electric AK Intertie-GVEA SVC Project 120,000 90,000 - 0%(90,000) AK Intertie-Healy, Cantwell, Goldhill 64,500 48,375 13,100 20%(35,275) AK Intertie-Cantwell Instl Brkrs or Load Brkr Swch 650,000 487,500 4,964 1%(482,536) AK Intertie-Capacitor Spares - - 38,499 0%38,499 AK Intertie-HLSB Sync PT Replacement 25,000 18,750 528 2%(18,222) AK Intertie-Replace Healy Substation Breaker 350,000 262,500 285,736 82%23,236 Golden Valley Electric Total 1,209,500 907,125 342,827 28%(564,298) Matanuska Electric Association AK Intertie-Douglas Substation 325,000 243,750 5,807 2%(237,943) Matanuska Electric Association Total 325,000 243,750 5,807 2%(237,943) 57100 Maint of OH Lines Golden Valley Electric AK Intertie-Northern Maintenance - - 50,058 0%50,058 ALASKA ENERGY AUTHORITY AK INTERTIE BUDGET TO ACTUAL REVENUE AND EXPENSES FOR THE PERIOD 07/01/2024 THROUGH 03/31/2025 Page 2 of 4 FY25 Amended Budget Amended Budget 07/01/2024 - 03/31/2025 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 07/01/2024 THROUGH 03/31/2025 AK Intertie-Landing Pads 75,000 56,250 - 0%(56,250) AK Intertie-Special Patrols (Incl Foundation Insp)80,000 60,000 - 0%(60,000) Golden Valley Electric Total 155,000 116,250 50,058 32%(66,192) Matanuska Electric Association AK Intertie-Special Patrols (Incl Foundation Insp)15,000 11,250 19,982 133%8,732 AK Intertie-Southern Maint. (Incl Ground Insp)140,000 105,000 - 0%(105,000) Matanuska Electric Association Total 155,000 116,250 19,982 13%(96,268) 57102 Maint OH Lines-ROW Clearing Golden Valley Electric AK Intertie-Northern ROW Clearing 550,000 412,500 33,148 6%(379,352) Golden Valley Electric Total 550,000 412,500 33,148 6%(379,352) Matanuska Electric Association AK Intertie-Southern ROW Clearing 300,000 225,000 47,854 16%(177,146) AK Intertie-Southern ROW Remote Sensing 10,000 7,500 5,561 56%(1,939) Matanuska Electric Association Total 310,000 232,500 53,415 17%(179,085) 58306 Misc Admin Alaska Energy Authority AK Intertie-IMC Admin Cost (Audit, Meeting, Legal)20,000 15,000 11,177 56%(3,823) Alaska Energy Authority Total 20,000 15,000 11,177 56%(3,823) 58401 Insurance Premiums Alaska Energy Authority AK Intertie-Insurance 22,200 16,650 26,418 119%9,768 Alaska Energy Authority Total 22,200 16,650 26,418 119%9,768 Matanuska Electric Association AK Intertie-Insurance 14,800 11,100 - 0%(11,100) Matanuska Electric Association Total 14,800 11,100 - 0%(11,100) Total Total Expense 3,846,100 2,884,575 677,331 18%(2,207,244) Total Operating Expenses 3,846,100 2,884,575 677,331 18%(2,207,244) 71001 Total Expense, Budget Alaska Energy Authority Administrative Support Services 250,000 187,500 214,548 86%27,048 Alaska Energy Authority Total 250,000 187,500 214,548 86%27,048 Total Total Expense 250,000 187,500 214,548 86%27,048 Total AEA Administration Expenses 250,000 187,500 214,548 86%27,048 Total Expenses 4,096,100 3,072,075 891,879 22%(2,180,196) Surplus (Shortage)249,170 730,694 2,560,705 1028%1,830,010 Page 3 of 4 Alaska Intertie FY25 Budget to Actuals Status Report for the Period 07/01/2024 through 03/31/2025 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 12,275 2,187 - 14,462 Jul 9,839 2,309 - 12,148 Aug 14,077 2,295 - 16,372 Aug 8,590 2,300 - 10,890 Sep 14,766 2,210 - 16,976 Sep 16,901 2,125 - 19,026 Oct 27,634 2,165 - 29,799 Oct 21,194 2,011 - 23,205 Nov 27,147 2,339 - 29,486 Nov 21,209 2,122 - 23,331 Dec 26,405 2,633 - 29,038 Dec 19,086 2,312 - 21,398 Jan 8,460 2,458 - 10,918 Jan 9,015 2,207 - 11,222 Feb - 2,261 - 2,261 Feb 308 2,175 - 2,483 Mar 5,060 2,466 - 7,526 Mar 4,303 2,162 - 6,465 Apr 5,310 2,258 - 7,568 Apr - - - - May 4,060 2,321 - 6,381 May - - - - Jun 4,060 1,935 - 5,995 Jun - - - - TOTAL 149,253 27,527 - 176,780 TOTAL 110,445 19,723 - 130,168 INTERTIE PROJECTED ENERGY USAGE TO DATE (MWH)156,836 INTERTIE ACTUAL ENERGY USAGE TO DATE (MWH) 130,168 Budgeted Operating Costs for the Period 2,884,575$ Actual Operating Costs for the Period 677,331$ (based on amended budget) Budgeted Usage Revenue for the Period 2,644,259$ Actual (Billed) Usage Revenue for the Period 2,194,632$ (budgeted rate * projected usage)(budgeted rate * actual usage) Estimated Budgeted Energy Rate per MWH 15.36$ (based on budgeted costs and usage) Annual Budgeted Energy Rate (Billed Rate)16.86$ Projected Actual Energy Rate per MWH 4.34$ (based on minimum contract value)(based on actual costs and usage) Page 4 of 4 Intertie Management Committee Meeting IOC Report May 2, 2025 1.Intertie Operating Committee a.The IOC has reviewed and recommends approval of the attached draft budget. Minor changes have been made since the last review in March. These include additional funding for the Douglas communication tower upgrade, increase in insurance and administrative expenses, and increased cost for PSSE software. The increases total approximately $200k in the budget since the last revision in March. In addition, the anticipated grant costs have been updated. b.Repairs to structure 616 are tentatively scheduled for the middle of July. This schedule is based on the material lead times. Funding for the repair is included in the FY26 budget. c.The Douglas control enclosure foundation repair is planned for June. Piles are on order, the design is complete, and bidding will be done in May. 2.System Studies Subcommittee a.Preliminary results are under review by the SSS for an impact study that focuses on upgrading the Kenai to Anchorage and Anchorage to Healy transmission lines to 230 kV. A summary report should be ready for the IMC to review at the next meeting. b.The SSS has commissioned a study to analyze the impact of a high penetration of inverter base resources on the Railbelt. The study is underway, but results are not anticipated until the fourth quarter. c.The RRC has requested that they attend the SSS as a nonvoting member and they have requested a PSSE key. The IOC is requesting direction from the IMC on what interaction, if any, the IMC or its subcommittee’s should have with the RRC. d.Grant funding for the synchrophasor and snow unloading projects is anticipated in May. Both projects will kickoff once funding is available. 3.Relay, Protection, & Control Subcommittee a.The committee plans to review and determine what is needed to provide GVEA remote access to Douglas after the Douglas control enclosure foundation repair is completed. Alaska Energy Authority Alaska Intertie Date: May 2, 2025 Proposed FY2026 Budget Page 1 of 9 ALASKA ENERGY AUTHORITY ALASKA INTERTIE Proposed FY2026 Budget Contents Description Page # Budget Summary 3 Date: May 2, 2025 O&M Budget 4-5 Grant Budget 6 Usage Projection 7 AK Intertie MITCR 8 Page 2 of 9 Proposed FY2026 Budget Budget Summary Revenues O&M Grant Total Total GVEA Total CEA Total MEA Total HEA Total Revenue from Operations 4,023,927 -4,023,927 2,495,127 371,920 1,156,880 -4,023,927 Grant Match -83,893 83,893 69,389 5,018 9,487 946 83,893 4,023,927 83,893 4,107,821 2,564,516 376,938 1,166,367 946 4,107,821 Date: May 2, 2025 Expenses Operations 3,212,700 -3,212,700 Admin 567,000 -567,000 Grant -83,893 83,893 3,779,700 83,893 3,863,593 Surplus/(Shortage)244,227 -244,227 (Total Paid by Utilities) Page 3 of 9 Proposed FY2026 Budget data @ 2/7/25 FY25 Approved Proposed FY22 FY23 FY24 Actual FY25 FY26 Actual Actual Actual @12/31/24 Amend Budget Budget REVENUES GVEA 2,075,721 1,632,539 3,896,647 1,641,366 3,061,282 2,495,127 CEA 265,259 405,435 471,717 300,792 462,878 371,920 MEA 413,239 450,409 674,787 429,442 821,110 1,156,880 Date: May 2, 2025INTEREST 1,668 58,625 106,406 81,092 -- OTHER -27,357 113,875 - TOTAL REVENUES 2,755,887 2,574,364 5,263,432 2,452,692 4,345,270 4,023,927 EXPENSES FERC 562 - Station Operation Expenses GVEA - Substation Electricity Usage 45,889 478 ---- 45,889 478 ---- FERC 566 - Miscellaneous Transmission Expense Private Line Telephone Service for AKI SCADA (GVEA)5,556 5,788 2,315 -6,000 6,000 Cell Phone Comm. Svc for Weather Monitoring (Verizon)12,025 11,983 12,007 5,001 13,000 13,000 SLMS Support and Intertie Ground Patrol 154,947 145,346 133,342 -175,000 175,000 Misc Studies as needed (Cyber Security Study)----- 172,528 163,116 147,664 5,001 194,000 194,000 FERC 567 - Transmission Expenses - Rents Rents - Alaska Railroad 700 1,500 1,000 1,000 1,000 1,000 MEA - Talkeetna Storage 7,200 7,200 7,200 3,600 7,200 7,200 Equipment Rental 375 102 ---- PSSE key replacement ------ 8,275 8,802 8,200 4,600 8,200 8,200 FERC 569 Maintenance of Structures MEA - Insulator & Str Replacement (Teeland to Douglas)----350,000 MEA - Maintenance of Structures --5,204 -150,000 100,000 --5,204 -150,000 450,000 FERC 570 - Maintenance of Station Equipment GVEA - HLSB17 Sync PT Replacement ----25,000 50,000 GVEA - Healy, Cantwell, Goldhill 63,163 141,248 80,624 13,100 64,500 54,500 GVEA - SCADA Maintenance Healy, Cantwell, Gold Hill -1,120 --10,000 GVEA - Replace Healy Substation Breaker B17 ---285,736 350,000 - GVEA - Healy, Teeland, Goldhill Dampers ----- GVEA - Healy and Goldhill Digital Fault Recorders 53,255 -6,046 --- GVEA - Healy SVC Fire Alarm Panel Replacement ----- GVEA - Gold Hill SVC Fire Alarm Panel Replacement ----- GVEA - Gold Hill SVC Cooling 460 -2,059 --- GVEA - Cantwell Install Breakers or Load Break Switches 182,606 ---650,000 - GVEA - Cantwell 4S2 Switch Repair -43,217 748 4,084 -- GVEA - Replace Battery Healy SVC ----- GVEA - Replace Battery Goldhill SVC ----- GVEA - Perform Maintenance, repaint Reactors Healy SVC Yard -4,472 ---- GVEA - Perform Maintenance, repaint Reactors Gold Hill SVC Yard 7,452 ----- GVEA - Mobile Substation Site ----100,000 GVEA - Cantwell RTU, Recloser, & Transformer Protection replacement ----- GVEA - Recloser Control Replacement ----- GVEA - SVC Insulator Replacements - Helay and Gold hill ----3,000 GVEA - SVC Capacitor Spares ---38,499 -- GVEA - Dissolved Gas Monitoring Gold Hill & Healy ---- Page 4 of 9 GVEA - Redesign Healy SVC 138 kV Interconnection -----50,000 GVEA - SVC Intertie Trust Fund Eligible Expenses ----- GVEA - Intertie - SVC Project ---120,000 - CEA - AK Intertie Yard ----- CEA - Teeland Substation Communication --6,787 -5,000 5,000 CEA - Teeland Substation 115,365 74,128 168,737 60,202 170,000 180,000 CEA - Douglas Substation Communication ---1,578 2,400 5,000 MEA - Douglas Substation --5,181 5,807 300,000 150,000 MEA - Douglas Substation 138 kV BKR Inspections ----25,000 - GVEA - Douglas Substation OOS relaying and communications ----- CEA - Telecomm Support (Douglas, Teeland, Anc-Fbks Leased Circuits)1,742 ----100,000 424,043 263,065 271,301 409,006 1,711,900 707,500 FERC 571 - Maintenance of Overhead Lines - GVEA - Northern Maintenance 107,641 99,464 99,237 50,058 -103,000 GVEA-Private Line Telephone Service ----85,000 GVEA - Northern ROW Clearing - 28 miles of ROW north of Indian River 68,882 328,252 626,189 33,148 550,000 600,000 GVEA - Northern ROW Clearing - Remote Sensing Analysis --335,516 --- GVEA - Landing Pads ----75,000 60,000 GVEA - Re-level Structures & Adjust Guys ------ GVEA - Repair Tower 616 Foundation ----500,000 GVEA - Repair Tower 537 Foundation ----- GVEA - Repair Tower 539 Foundation ----- GVEA - Repair Tower 569 Foundation ----- GVEA - Repair Tower 531 Foundation --154,915 --- GVEA - Repair Tower 532 Foundation --154,915 --- GVEA - Repair Tower 748 ----- GVEA - Repair Tower 692 ----- GVEA - Helicopter Patrols ----80,000 - MEA - Special Patrols [Incl Helicopter Inspections]599 11,603 6,510 19,982 15,000 50,000 MEA - Southern Maint (Incl Ground and Climbing Inspect)191,358 78,729 --140,000 125,000 MEA - Southern ROW Clearing 168,367 525,520 287,124 47,854 300,000 175,000 MEA - Southern ROW Remote Sensing and Analysis --104,849 5,561 10,000 10,000 MEA - TWR 195 Repair Monitoring ----- MEA - Equipment Repair and Replacement 76,494 803,393 152,755 --100,000 613,341 1,846,961 1,922,010 156,603 1,170,000 1,808,000 FERC 924 - Property Insurance AK Intertie - Insurance 37,133 40,178 42,558 26,418 37,000 45,000 37,133 40,178 42,558 26,418 37,000 45,000 Intertie Operating Costs Total 1,301,209 2,322,601 2,396,938 601,628 3,271,100 3,212,700 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 235,608 190,236 254,493 121,460 250,000 300,000 235,608 190,236 254,493 121,460 250,000 300,000 FERC 920 - IMC Administrative Costs IMC Administrative Costs (Audit, meetings, legal)29,276 14,579 20,672 4,697 20,000 20,000 29,276 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 145,327 150,368 57,544 7,500 515,000 180,000 Page 5 of 9 LIDAR study (complete lidar, vegetation, PLS CADD file with drawings, structure/foundation movement, infrared, and imaging)----40,000 - PSSE Maintenance 27,000 EPRI (Annual Cost)40,000 Synchrophaser System (only applies if grant is eliminated)----- 145,327 150,368 57,544 7,500 555,000 247,000 Intertie Administration Costs Total 410,211 355,182 332,708 133,657 825,000 567,000 TOTAL EXPENSE 1,711,420 2,677,783 2,729,646 735,285 4,096,100 3,779,700 SURPLUS (SHORTAGE)1,044,468 (103,419)2,533,786 1,717,407 249,170 244,227 Page 6 of 9 Proposed FY2026 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 & $500k in-kind in-house labor) AEA to revise per agreed payment (Anticipating May 2025 start??) Date: May 2, 2025 75,000$ Percent FY26 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 $13,758,891 $10,319,169 $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 & $500k in-kind in-house labor) AEA to revise budget for approved payment methods Total Match Amount 9,839$ HEA is contributing because they are receiving benefit from the Synchrophaser System (Railbelt wide) Percent FY26 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%946 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%7,927 2 $440,245 $9,839 $100,222 $330,183 CEA 0.00%-3 $440,245 $9,839 $100,222 $330,183 MEA 10.87%967 4 $440,245 $9,839 $100,222 $330,183 5 $440,245 $9,839 $100,222 $330,183 100.00%8,893 Total $2,201,225 $49,195 $501,110 $1,650,915 USDA CWDG - Integrated Vegetation Management MEA submittal to USDA ($3.7M grant with 25% match requirement) (Anticipating May 2025 start??) Total Match Amount $936,875 Percent FY26 Power Purchaser Share Match Year Project Total Cost Grant Reimbursement Grant Match (Cash and In-Kind) 1 $826,875 $620,156 $206,719 GVEA 81.95%169,406 2 $561,974 $421,481 $140,493 CEA 6.69%13,830 3 $1,411,322 $1,058,492 $352,830 MEA 11.36%23,483 4 $670,188 $502,641 $167,547 5 $277,145 $207,859 $69,286 100.00%206,719 Total $3,747,504 $2,810,629 $936,875 DOE Resiliency Grant - AK Intertie Snow Load Resiliency DOE Resiliency Grant - Synchrophasor Project - Five Year Average USDA CWDG Grant Page 7 of 9 Proposed FY2026 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 Date: May 2, 2025 2,846 2,194 0 5,040 $94,316 $72,709 $0 $265,200 $82,280 $182,920 $47,250 $744,676 Aug 5,188 2,276 0 7,464 $171,930 $75,427 $0 $47,250 $294,607 Sep 2,177 2,143 0 4,320 $72,146 $71,019 $0 $47,250 $190,415 Oct 6,861 2,045 0 8,906 $227,374 $67,771 $0 $47,250 $342,395 Nov 8,868 2,158 0 11,026 $293,886 $71,516 $0 $47,250 $412,652 Dec 8,868 2,436 0 11,304 $293,886 $80,729 $0 $47,250 $421,865 Jan 9,537 2,446 0 11,983 $316,056 $81,060 $0 $47,250 $444,367 Feb 504 2,224 0 2,728 $16,703 $73,703 $0 $47,250 $137,656 Mar 838 2,365 0 3,203 $27,771 $78,376 $0 $47,250 $153,397 Apr 4,853 2,180 0 7,033 $160,828 $72,245 $0 $47,250 $280,324 May 4,853 2,299 0 7,152 $160,828 $76,189 $0 $47,250 $284,267 Jun 6,192 1,957 0 8,149 $205,203 $64,855 $0 $47,250 $317,308 TOTAL 0 61,585 26,723 0 88,308 $2,040,927 $885,600 $0 $265,200 $82,280 $182,920 $567,000 $4,023,927 Total Energy:$2,926,527 Total Capacity :$530,400 88,308 MWH 80,949 MWH 204,984 MWH TOTAL MWH REVENUE $4,023,927 O&M BUDGET - Operating 3,212,700 - O&M BUDGET - Administrative 567,000 UTILITY FY 26 TOTAL O&M BUDGET 3,779,700 MEA 31.00%24.20 MW SURPLUS (SHORTAGE)$244,227 CEA 69.00%53.80 MW GVEA 100.00%78.00 MW Annual Participant Administrative Contribution 189,000.00 156.0 Monthly Contribution per Participant 15,750.00 Usage Rate per KWH 0.03314$ Capacity Rate $3.40 Section 7.2.2 MINIMUM USAGE CONTRACT VALUE ALASKA INTERTIE FISCAL YEAR 2026 ENERGY PROJECTION TOTAL INTERTIE PROJECTED ENERGY USAGE Usage estimate reduced by 1/12 of Total for rate calculations Page 8 of 9 Proposed FY2026 Budget Annual System Demand 22-23 23-24 24-25 3 YR AVG. SOUTHERN UTILITY PARTICIPANTS (MW) Date: May 2, 2025 CEA 343.8 322.9 338.69 335.1 MW APPROVED APPROVED APPROVED APPROVED APPROVED MEA 147.0 150.7 154.2 150.6 MW 6/30/2026 6/30/2025 6/30/2024 6/30/2023 6/30/2022 UNITS FY26 FY25 FY24 FY23 FY22 USAGE KWH 80,949,000 162,048,000 251,476,000 415,247,000 187,902,000 OPERATING BUDGET $3,212,700 3,271,100 3,710,200 2,544,100 1,992,890 MITCR KW 156,000 156,000 156,000 156,000 156,100 TOTAL 485.7 MW ENERGY (A)$.000/KWH $0.03314 $0.01686 $0.01232 $0.00512 $0.00886 NORTHERN UTILITY PARTICIPANTS (MW) CAPACITY (B)$/KW $3.40 $3.46 $3.92 $2.69 $2.11 GVEA 205.5 205.5 204 205.0 MW TOTAL 205.0 MW MITCR DETERMINATION FY 25 KWH CAP RATE CAP CHARGES MEA 31.00%24.20 MW 24,200 $3.40 82,280.00 CEA 69.00%53.80 MW 53,800 $3.40 182,920.00 GVEA 100.00%78.00 MW 78,000 $3.40 265,200.00 156.00 MW 156,000 530,400.00 (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 2026 Page 9 of 9 Intertie Management Committee Meeting Operator Report May 2 , 202 5 1. Alaska Intertie usage report a. MWh usage – Measured at Douglas Substation, YTD GVEA MEA Total July-April FY25 110,445 19,723 130,168 July-April FY24 238,539 20,338 258,877 Delta – FY25 to FY 24 (-53.7%) (-3.02%) (-49.7%) 2. Alaska Intertie trips to report There were no trips of the Alaska Intertie in the months of March or April. 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 provided 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 Time MW Pre -Trip High /Low Freq Resp Tripped Freq (Hz) Freq (Hz) (MW/0.1Hz) Healy 1 Trip 3/5/2025 14:01:20 13 59.93 59.78 8.6 Healy 1 Trip 3/11/25 14:15:17 18.3 59.95 59.78 11.0 North Pole Trip 3/20/25 18:28:30 20.9 59.99 59.77 9.6 UVSS-HPSS Trip 3/28/25 06:30:19 36.2 59.96 59.58 9.4 SPP Trip 4/6/25 14:48:17 94.1 59.98 58.99 9.6