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Home My WebLink About2025-06-20 IMC Agenda and docs INTERTIE MANAGEMENT COMMITTEE (IMC) REGULAR MEETING June 20, 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 – May 2, 2025 7. NEW BUSINESS A. FY26 Budget 8. OLD BUSINESS A. Budget Subcommittee – Grant Tracking recommendation 9. COMMITTEE REPORTS A. Budget to Actuals Mark Ziesmer B. IOC Report Jon Sinclair C. Operator Report Mike Miller 10. MEMBERS COMMENTS 11. NEXT MEETING DATE – July 25, 2025 at 9:00 am 12. ADJOURNMENT Alaska Energy Authority Alaska Intertie Date: June 20, 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 3,902,770 - 3,902,770 2,414,328 365,464 1,122,978 - 3,902,770 Grant Match - 291,558 291,558 238,795 18,847 32,970 946 291,558 3,902,770 291,558 4,194,328 2,653,124 384,311 1,155,948 946 4,194,328 Expenses Operations 3,100,700 - 3,100,700 Admin 567,000 - 567,000 Grant - 291,558 291,558 3,667,700 291,558 3,959,258 Surplus/(Shortage) 235,070 - 235,070 (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 2,414,328 CEA 265,259 405,435 471,717 300,792 462,878 365,464 MEA 413,239 450,409 674,787 429,442 821,110 1,122,978 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 3,902,770 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 85,000 Cell Phone Comm. Svc for Weather Monitoring (Verizon)12,025 11,983 12,007 5,001 13,000 - SLMS Support and Intertie Ground Patrol 154,947 145,346 133,342 - 175,000 175,000 172,528 163,116 147,664 5,001 194,000 260,000 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 - - - - - - GVEA - SVC Insulator Replacements - Healy and Gold hill - - - - - 10,000 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 1,711,900 614,500 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 - - - - - 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 1,723,000 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 3,100,700 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 3,667,700 SURPLUS (SHORTAGE) 1,044,485 (103,419) 2,533,786 1,717,407 249,170 235,070 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 & $500k in-kind in-house labor) AEA to revise per agreed payment (Anticipating July 2025 start) 75,000$ 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 & $500k in-kind in-house labor) AEA to revise budget for approved payment methods (Anticipating July 2025 start) Total Match Amount 9,839$ 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) (Pending award) 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 $91,015 $70,164 $0 $255,840 $79,376 $176,464 $47,250 $720,109 Aug 5,188 2,276 0 7,464 $165,912 $72,786 $0 $47,250 $285,949 Sep 2,177 2,143 0 4,320 $69,620 $68,533 $0 $47,250 $185,404 Oct 6,861 2,045 0 8,906 $219,415 $65,399 $0 $47,250 $332,064 Nov 8,868 2,158 0 11,026 $283,599 $69,013 $0 $47,250 $399,861 Dec 8,868 2,436 0 11,304 $283,599 $77,903 $0 $47,250 $408,752 Jan 9,537 2,446 0 11,983 $304,993 $78,223 $0 $47,250 $430,466 Feb 504 2,224 0 2,728 $16,118 $71,124 $0 $47,250 $134,491 Mar 838 2,365 0 3,203 $26,799 $75,633 $0 $47,250 $149,682 Apr 4,853 2,180 0 7,033 $155,199 $69,716 $0 $47,250 $272,165 May 4,853 2,299 0 7,152 $155,199 $73,522 $0 $47,250 $275,971 Jun 6,192 1,957 0 8,149 $198,020 $62,585 $0 $47,250 $307,855 TOTAL 0 61,585 26,723 0 88,308 $1,969,488 $854,602 $0 $255,840 $79,376 $176,464 $567,000 $3,902,770 Total Energy: $2,824,090 Total Capacity : $511,680 88,308 MWH 80,949 MWH 204,984 MWH TOTAL MWH REVENUE $3,902,770 O&M BUDGET - Operating 3,100,700 - O&M BUDGET - Administrative 567,000 UTILITY FY 26 TOTAL O&M BUDGET 3,667,700 MEA 31.00% 24.20 MW SURPLUS (SHORTAGE) $235,070 CEA 69.00% 53.80 MW GVEA 100.00% 78.00 MW Annual Participant Administrative Contribution 189,000.00 156.0 Monthly Contribution per Participant 15,750.00 Usage Rate per KWH 0.03198$ Capacity Rate $3.28 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 PROPOSED 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 $ 3,100,700 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 $0.03198 $0.01686 $0.01232 $0.00512 $0.00886 NORTHERN UTILITY PARTICIPANTS (MW) CAPACITY (B)$/KW $3.28 $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 $3.28 79,376.00 CEA 69.00% 53.80 MW 53,800 $3.28 176,464.00 GVEA 100.00%78.00 MW 78,000 $3.28 255,840.00 156.00 MW 156,000 511,680.00 (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 04/30/2025 Page 1 of 4 FY25 Amended Budget Amended Budget 07/01/2024 - 04/30/2025 Actuals YTD Actuals as a % of Total Annual Budget Over (Under) YTD Variance Revenue From Utilities AKI-GVEA 3,061,282 2,878,546 2,444,303 80%(434,243) AKI-CEA 462,878 417,045 417,045 90%- AKI-MEA 821,110 703,522 678,194 83%(25,328) Total Revenue From Utilities 4,345,270 3,999,112 3,539,542 81%(459,571) Interest - - 105,472 0%105,472 Other - - - 0%- Total Revenues 4,345,270 3,999,112 3,645,014 84%(354,099) Total Revenues 4,345,270 3,999,112 3,645,014 84%(354,099) 56600 Misc Transmission Expense Alaska Energy Authority AK Intertie-Cell Phone Comm. Svc. for Wx Monitorng 13,000 10,833 6,431 49%(4,402) AK Intertie-Miscellaneous Studies as Needed 555,000 462,500 103,020 19%(359,480) Alaska Energy Authority Total 568,000 473,333 109,451 19%(363,883) Golden Valley Electric AK Intertie-Private Line Telephone Service SCADA 6,000 5,000 - 0%(5,000) Golden Valley Electric Total 6,000 5,000 - 0%(5,000) 56601 Weather Monitoring Batteries Alaska Energy Authority AK Intertie-SLMS Support & Intertie Ground Patrol 175,000 145,833 18,971 11%(126,862) Alaska Energy Authority Total 175,000 145,833 18,971 11%(126,862) 56700 Rents Alaska Energy Authority AK Intertie-Alaska Railroad 1,000 833 1,000 100%167 Alaska Energy Authority Total 1,000 833 1,000 100%167 Matanuska Electric Association AK Intertie-Talkeetna Storage 7,200 6,000 6,000 83%- Matanuska Electric Association Total 7,200 6,000 6,000 83%- 56900 Maintenance of Structures Matanuska Electric Association AK Intertie-Maintenance of Structures 150,000 125,000 - 0%(125,000) Matanuska Electric Association Total 150,000 125,000 - 0%(125,000) 57000 Maintenance of Station Equip Chugach Electric Association AK Intertie-Teeland Substation 175,000 145,833 82,804 47%(63,029) AK Intertie-Douglas Substation Communications 2,400 2,000 2,991 125%991 Chugach Electric Association Total 177,400 147,833 85,795 48%(62,039) Golden Valley Electric AK Intertie-GVEA SVC Project 120,000 100,000 - 0%(100,000) AK Intertie-Healy, Cantwell, Goldhill 64,500 53,750 22,123 34%(31,627) AK Intertie-Cantwell Instl Brkrs or Load Brkr Swch 650,000 541,667 6,299 1%(535,368) AK Intertie-Capacitor Spares - - 38,499 0%38,499 AK Intertie-HLSB Sync PT Replacement 25,000 20,833 1,584 6%(19,249) AK Intertie-Replace Healy Substation Breaker 350,000 291,667 285,736 82%(5,931) Golden Valley Electric Total 1,209,500 1,007,917 354,241 29%(653,676) Matanuska Electric Association AK Intertie-Douglas Substation 325,000 270,833 13,035 4%(257,798) Matanuska Electric Association Total 325,000 270,833 13,035 4%(257,798) 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 04/30/2025 Page 2 of 4 FY25 Amended Budget Amended Budget 07/01/2024 - 04/30/2025 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 04/30/2025 AK Intertie-Landing Pads 75,000 62,500 - 0%(62,500) AK Intertie-Special Patrols (Incl Foundation Insp) 80,000 66,667 - 0%(66,667) Golden Valley Electric Total 155,000 129,167 50,058 32%(79,109) Matanuska Electric Association AK Intertie-Special Patrols (Incl Foundation Insp) 15,000 12,500 19,982 133%7,482 AK Intertie-Southern Maint. (Incl Ground Insp) 140,000 116,667 - 0%(116,667) AK Intertie-Equipment Repair & Replacement - - 1,174 0%1,174 Matanuska Electric Association Total 155,000 129,167 21,157 14%(108,010) 57102 Maint OH Lines-ROW Clearing Golden Valley Electric AK Intertie-Northern ROW Clearing 550,000 458,333 33,148 6%(425,186) Golden Valley Electric Total 550,000 458,333 33,148 6%(425,186) Matanuska Electric Association AK Intertie-Southern ROW Clearing 300,000 250,000 47,854 16%(202,146) AK Intertie-Southern ROW Remote Sensing 10,000 8,333 5,561 56%(2,773) Matanuska Electric Association Total 310,000 258,333 53,415 17%(204,919) 58306 Misc Admin Alaska Energy Authority AK Intertie-IMC Admin Cost (Audit, Meeting, Legal) 20,000 16,667 11,177 56%(5,490) Alaska Energy Authority Total 20,000 16,667 11,177 56%(5,490) 58401 Insurance Premiums Alaska Energy Authority AK Intertie-Insurance 22,200 18,500 26,418 119%7,918 Alaska Energy Authority Total 22,200 18,500 26,418 119%7,918 Matanuska Electric Association AK Intertie-Insurance 14,800 12,333 - 0%(12,333) Matanuska Electric Association Total 14,800 12,333 - 0%(12,333) Total Total Expense 3,846,100 3,205,083 783,865 20%(2,421,219) Total Operating Expenses 3,846,100 3,205,083 783,865 20%(2,421,219) 71001 Total Expense, Budget Alaska Energy Authority Administrative Support Services 250,000 208,333 273,165 109%64,832 Alaska Energy Authority Total 250,000 208,333 273,165 109%64,832 Total Total Expense 250,000 208,333 273,165 109%64,832 Total AEA Administration Expenses 250,000 208,333 273,165 109%64,832 Total Expenses 4,096,100 3,413,416 1,057,030 26%(2,356,386) Surplus (Shortage)249,170 585,696 2,587,984 1039%2,002,287 Page 3 of 4 Alaska Intertie FY25 Budget to Actuals Status Report for the Period 07/01/2024 through 04/30/2025 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 4,932 2,046 - 6,978 May 4,060 2,321 - 6,381 May - - - - Jun 4,060 1,935 - 5,995 Jun - - - - TOTAL 149,253 27,527 - 176,780 TOTAL 115,377 21,769 - 137,146 INTERTIE PROJECTED ENERGY USAGE TO DATE (MWH) 164,404 INTERTIE ACTUAL ENERGY USAGE TO DATE (MWH) 137,146 Budgeted Operating Costs for the Period 3,205,083$ Actual Operating Costs for the Period 783,865$ (based on amended budget) Budgeted Usage Revenue for the Period 2,771,852$ Actual (Billed) Usage Revenue for the Period 2,312,282$ (budgeted rate * projected usage) (budgeted rate * actual usage) Estimated Budgeted Energy Rate per MWH 16.28$ (based on budgeted costs and usage) Annual Budgeted Energy Rate (Billed Rate) 16.86$ Projected Actual Energy Rate per MWH 4.77$ (based on minimum contract value) (based on actual costs and usage) Page 4 of 4 Intertie Management Committee Meeting IOC Report June 20, 2025 1. Intertie Operating Committee a. The IOC elected a new chair, Mike Miller with CEA. He will be taking on the new role July 1. Congratulations to Mr. Miller. b. The 2026 budget was discussed, and minor edits were made. Changes included moving and decreasing the budget for telephone service GVEA pays under FERC 566 line, removing the mobile substation site project GVEA planned and increasing the SVC Insulators at Gold Hill. The net change was a decrease of $112k to the overall budget. A copy of the budget with the proposed changes highlighted in red is attached for your reference. c. Construction on the Douglas control enclosure foundation is underway. Completion is anticipated in July. The 2026 budget currently has $150k for the project. However additional funding, above $150k, may be required if more work than anticipated falls in the 2026 fiscal year. 2. System Studies Subcommittee a. Work continues on the 230 kV and IBR studies, with completion of both anticipated by the end of 2025. b. The development of an electromagnetic transient (EMT) model for the Railbelt was discussed. The result of the discussion was an SSS assignment to get quotes from vendors for an EMT model. Once quotes are received the IOC will provide a recommendation to the IMC. c. Grant funding for the synchrophasor and snow unloading projects is still pending, with no specific timeline given. 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 1 of 8 Proposed FY2026 Budget Budget Summary Revenues O&M Grant Total Total GVEA Total CEA Total MEA Total HEA Total Revenue from Operations 3,902,770 - 3,902,770 2,414,328 365,464 1,122,978 - 3,902,770 Grant Match - 83,893 83,893 69,389 5,018 9,487 946 83,893 3,902,770 83,893 3,986,663 2,483,718 370,482 1,132,464 946 3,986,663 Date: May 2, 2025 Expenses Operations 3,100,700 - 3,100,700 Admin 567,000 - 567,000 Grant - 83,893 83,893 3,667,700 83,893 3,751,593 Surplus/(Shortage) 235,070 - 235,070 (Total Paid by Utilities) Page 2 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 2,075,721 1,632,539 3,896,647 1,641,366 3,061,282 2,414,328 CEA 265,259 405,435 471,717 300,792 462,878 365,464 MEA 413,239 450,409 674,787 429,442 821,110 1,122,978 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 3,902,770 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 85,000 Cell Phone Comm. Svc for Weather Monitoring (Verizon)12,025 11,983 12,007 5,001 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 5,001 194,000 260,000 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 - - - - - GVEA - Cantwell RTU, Recloser, & Transformer Protection replacement - - - - - GVEA - Recloser Control Replacement - - - - - GVEA - SVC Insulator Replacements - Helay and Gold hill - - - - 10,000 GVEA - SVC Capacitor Spares - - - 38,499 - - GVEA - Dissolved Gas Monitoring Gold Hill & Healy - - - - Page 3 of 8 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 1,711,900 614,500 FERC 571 - Maintenance of Overhead Lines - GVEA - Northern Maintenance 107,641 99,464 99,237 50,058 - 103,000 GVEA-Private Line Telephone Service - - - - - 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 1,723,000 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 3,100,700 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 Page 4 of 8 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 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 3,667,700 SURPLUS (SHORTAGE) 1,044,468 (103,419) 2,533,786 1,717,407 249,170 235,070 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 & $500k in-kind in-house labor) AEA to revise per agreed payment (Anticipating May 2025 start??) Date: May 2, 2025 75,000$ 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 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 Date: May 2, 2025 2,846 2,194 0 5,040 $91,015 $70,164 $0 $255,840 $79,376 $176,464 $47,250 $720,109 Aug 5,188 2,276 0 7,464 $165,912 $72,786 $0 $47,250 $285,949 Sep 2,177 2,143 0 4,320 $69,620 $68,533 $0 $47,250 $185,404 Oct 6,861 2,045 0 8,906 $219,415 $65,399 $0 $47,250 $332,064 Nov 8,868 2,158 0 11,026 $283,599 $69,013 $0 $47,250 $399,861 Dec 8,868 2,436 0 11,304 $283,599 $77,903 $0 $47,250 $408,752 Jan 9,537 2,446 0 11,983 $304,993 $78,223 $0 $47,250 $430,466 Feb 504 2,224 0 2,728 $16,118 $71,124 $0 $47,250 $134,491 Mar 838 2,365 0 3,203 $26,799 $75,633 $0 $47,250 $149,682 Apr 4,853 2,180 0 7,033 $155,199 $69,716 $0 $47,250 $272,165 May 4,853 2,299 0 7,152 $155,199 $73,522 $0 $47,250 $275,971 Jun 6,192 1,957 0 8,149 $198,020 $62,585 $0 $47,250 $307,855 TOTAL 0 61,585 26,723 0 88,308 $1,969,488 $854,602 $0 $255,840 $79,376 $176,464 $567,000 $3,902,770 Total Energy: $2,824,090 Total Capacity : $511,680 88,308 MWH 80,949 MWH 204,984 MWH TOTAL MWH REVENUE $3,902,770 O&M BUDGET - Operating 3,100,700 - O&M BUDGET - Administrative 567,000 UTILITY FY 26 TOTAL O&M BUDGET 3,667,700 MEA 31.00% 24.20 MW SURPLUS (SHORTAGE) $235,070 CEA 69.00% 53.80 MW GVEA 100.00% 78.00 MW Annual Participant Administrative Contribution 189,000.00 156.0 Monthly Contribution per Participant 15,750.00 Usage Rate per KWH 0.03198$ Capacity Rate $3.28 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) 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 $ 3,100,700 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 $0.03198 $0.01686 $0.01232 $0.00512 $0.00886 NORTHERN UTILITY PARTICIPANTS (MW) CAPACITY (B)$/KW $3.28 $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 $3.28 79,376.00 CEA 69.00% 53.80 MW 53,800 $3.28 176,464.00 GVEA 100.00%78.00 MW 78,000 $3.28 255,840.00 156.00 MW 156,000 511,680.00 (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 Intertie Management Committee Meeting Operator Report June 20, 2025 1. Alaska Intertie usage report a. MWh usage – Measured at Douglas Substation, YTD GVEA MEA Total July-May FY25 122,357 23,898 146,255 July-May FY24 264,478 24,587 289,065 Delta – FY25 to FY 24 (-53.7%) (-2.80%) (-49.4%) 2. Alaska Intertie trips to report There were no trips of the Alaska Intertie in the months of May. 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) SPP 10 Trip 5/6/25 13:58:41 24 59.99 59.67 7.6