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Home My WebLink About2026-05-15_BPMC-AgendaBRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA May 15, 2026 10:00 AM 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 (for all others present) 4.AGENDA APPROVAL 5.PUBLIC COMMENTS 6.APPROVAL OF MEETING MINUTES – March 20, 2026 7.NEW BUSINESS A.Hiring Attorney for BPMC 8.OLD BUSINESS A.Bradley Lake Expansion Capital Project Financing i.CIPLINK and SSQ Financing update 1.Executive Session - (Bylaws Section 5.11.4) – To discuss confidentialfinancial matters the immediate knowledge of which would clearly havean adverse effect upon the finances of the Authority of the Project. B.Dispute Resolution Process – Wheeling Services Agreement Jim Mendenhall Ryan McLaughlin CEA C.CIPLink Update D.Bradley Lake Expansion Project Update E.SQ Upgrade Update F.SS Line Update HEA Martin Law Mark Ziesmer 9.OPERATORS REPORT 10.COMMITTEE REPORTS A.Budget vs. Actuals B.O&D Report Josh Crowell 11.EXECUTIVE SESSION – (Bylaws Section 5.11.4) – To discuss confidential financial matters theimmediate knowledge of which would clearly have an adverse effect upon the finances of theAuthority of the Project. 12. MEMBERS COMMENTS 13. NEXT MEETING DATE – June 26, 2026 14. ADJOURNMENT ___________________________________________________________________________ BPMC Minutes 3/20/26 Page 1 of 16 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) REGULAR MEETING MINUTES March 20, 2026 1. CALL TO ORDER Vice Chair Arthur Miller called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:02 a.m. A quorum was established. 2. ROLL CALL (for Committee members) Tony Zellers (Matanuska Electric Association [MEA]); Arthur Miller (Chugach Electric Association [CEA]); Travis Million (Golden Valley Electric Association [GVEA]); Brad Janorschke (Homer Electric Association [HEA]); Brian Hickey (City of Seward); and Curtis Thayer (Alaska Energy Authority [AEA]). 3. PUBLIC ROLL CALL (for all others present) Jennifer Bertolini, Mark Billingsley, Pamela Ellis, Josi Hartley, Ryan McLaughlin, Jim Mendenhall, William Price, Robert Varga, Mark Ziesmer (AEA); Matt Clarkson, Josh Crowell, Sherri Highers, Andrew Laughlin, Mike Miller, Paul Millwood (CEA); Dan Bishop (GVEA); Larry Jorgensen, Sarah Lambe, Andrew Patrick (HEA); Josh Crowell, Kim Henkel, David Pease, Matt Reisterer, Jon Sinclair (MEA); and Julian Jensen (Public). 4. AGENDA APPROVAL MOTION: A motion was made by Mr. Million to approve the agenda, as presented. Motion seconded by Mr. Janorschke. A roll call was taken, and the motion to approve the agenda passed unanimously. 5. PUBLIC COMMENTS - None. 6. APPROVAL OF MEETING MINUTES – January 16, 2026 MOTION: A motion was made by Mr. Thayer to approve the Minutes of January 16, 2026. Motion seconded by Mr. Million. A roll call was taken, and the motion to approve the Minutes of January 16, 2026, passed unanimously. 7. NEW BUSINESS A. FY27 BPMC Budget ___________________________________________________________________________ BPMC Minutes 3/20/26 Page 2 of 16 Vice Chair Miller requested Mark Ziesmer, AEA, to provide an overview of the FY27 BPMC Budget. Matt Reisterer, MEA, commented that he is Acting Vice Chair of the Budget Subcommittee. He requested to provide a brief report and highlights of the budget before Mr. Ziesmer provides greater detail. Vice Chair Miller agreed. Mr. Reisterer discussed the Budget Subcommittee meeting last Friday. Also in attendance was Mr. Ziesmer and Larry Jorgensen, HEA, representing O&D. The review was productive and there were no controversies. One project was moved from the operations side to the capital side. There was no impact on the cost sharing bottom line. The budget has increased $1 million from last year, primarily due to administrative costs. Most of the review questions were focused on the increase of the budget in that area. After the meeting, Mr. Ziesmer provided a five-year summary of the budget escalation that was distributed to each of the utilities Chief Executive Officers (CEO). The escalation begins after AEA switched to actual administrative costs rather than the $200,000 flat fee schedule. Mr. Reisterer requested that the administrative costs for the expansion are removed from the Bradley Lake Project costs. He commented that it might be time to set up a different schedule, like the one created for Battle Creek and SSQ. Mr. Reisterer noted that Mr. Ziesmer has included the unassigned interest income at the bottom of the Budget versus Actual schedule. Through December, that amount is $16.2 million. Mr. Reisterer indicated that there were some costs added on Friday. He requested that Mr. Ziesmer provide a summary explanation of those costs. Mr. Reisterer announced that Sarah Lambe, HEA, will be taking over as Budget Subcommittee Vice Chair. Mr. Reisterer requested that the Budget Subcommittee is involved in AEA’s review of the financing options and terms for the expansion costs. In the past, the Budget Subcommittee collaborated well with AEA staff and the financial advisor. Vice Chair Miller commented that the overhead increased substantially. He asked if the Finance Subcommittee feels confident in the justification for the increases. Mr. Reisterer noted that Mr. Ziesmer provided information on the FTE’s that are part of the increases and the indirect allocations that are coming with those. Mr. Reisterer indicated that he does not have a working knowledge about the allocations. He believes additional explanation would be helpful, including an understanding of why the cost billing has increased dramatically from the original $200,000 fee. Mr. Thayer discussed that the original $200,000 that AEA was charging for administrative costs resulted in AEA absorbing a lot of costs related to Bradley Lake. AEA is not receiving any reimbursement for catch-up from prior years. He believes it was in 2024 that the BPMC chose to pay the actual costs, and the BPMC expected to see an increase by using the actual costs. He discussed the primary drivers of the increase. Last year, the BPMC agreed that AEA could go to the Legislature and get funding for another accountant. The cost for the second accountant is included in the budget. Mr. Thayer discussed the ongoing work on the FERC/Bradley comprehensive assessment and activity related to relicensing and not related to the amendment for Dixon Diversion. The costs also include two legislative trips to the Bradley Lake facility. Mr. ___________________________________________________________________________ BPMC Minutes 3/20/26 Page 3 of 16 Thayer reiterated that the administrative costs are truly actual costs. The Dixon Diversion costs are separate. Mr. Ziesmer focused his review on page 3, Summary, of the 2024 Proposed Budget. The Summary consists of three parts: Bradley Lake, Battle Creek, and SSQ Line. He began with Bradley Lake and noted that this is a zero-sum budget. The revenues are driven by the expenses. The Operations and Maintenance expenses, Schedule B, for Bradley Lake were $8.5 million. This is an increase of approximately $780,000 from the prior year. Mr. Ziesmer directed the members’ attention to page 5, Schedule B. He reviewed the Summary by Expense Type items and variances. The increases are related to staff and professional services with the addition of one full-time senior accounting position, expected increase in engineering activity related to the position, and half-time for project manager assistance. Also factored in are the COLA increases, step increases, and general pay increases. The Labor and Benefits item has been reduced by approximately $150,000. This is primarily related to the ending of the contract with the BPMC consultant. Most of the benefits of the FERC line items are flat with no increases. Mr. Ziesmer noted that the travel line-item expenses will increase by approximately $75,000. Much of this travel is related to trips to Bradley Lake for the FERC assessment and with legislators. The training line-item expenses will increase by approximately $74,000. This is primarily related to the increased requirements for field safety training. The contractual line-item expenses will increase by approximately $200,000 related to a variety of maintenance activities, including a fire inspection, painting the residences, generator work, powerhouse repairs, and risk assessment. However, there is also a decrease of approximately $30,000 in the contractual line item related to planned travel related to maintenance activities. Mr. Ziesmer continued the review and noted the consulting and administrative line-item expenses have decreased by $151,000. This is related to the contract with the BPMC consultant. The supplies and materials line-item expenses have generally decreased across all of the FERC sections. One of the reasons for the reduction is that a couple of projects have been moved to Schedule A since they are capital in nature. Mr. Ziesmer reviewed the increases in the administrative costs line item. He noted that approximately $200,000 of the increase is related to insurance. Approximately $255,000 of the increase is related to FERC activity. A portion of the FERC activity was originally planned for 2026 and has been moved to 2027. Approximately $77,000 of the increase is related to indirects based off payroll. Approximately $70,000 of the increase is related to legal fees pertaining to FERC, RCA, and potential financing activity. Mr. Ziesmer noted that the combined increase for Schedule B of the proposed budget is approximately $778,000. Mr. Million commented on the increase in training costs. He asked Mr. Ziesmer what is driving the increase. He asked if there are new training requirements that have not been implemented before or if the training was missing an aspect in the past and it has now been recognized. Mr. Ziesmer asked Larry Jorgensen, HEA, to answer the question. Mr. Jorgensen explained that they found that there were certifications that the operators needed that were not being addressed, including crane ___________________________________________________________________________ BPMC Minutes 3/20/26 Page 4 of 16 certified, forklift certified, and other heavy and large equipment at the facility. Training at a remote site is challenging. The budget increase is to bring the certifications up to date for all the operators. Mr. Million asked if those certifications are on a three-year cycle or if the certifications were not completed in the past and this issue was recognized and is now being corrected. Mr. Jorgensen answered that the cycles are different for each certification, ranging from annual to three years. The intent is to match the actual requirements. A hazard assessment identified that specific certifications were not up to date. This line item begins to correct the certifications and will carry forward. Mr. Janorschke asked Mr. Ziesmer for the name of the Bradley Lake Project Manager from AEA. Mr. Ziesmer answered that the Project Manager is Ryan McLaughlin, AEA. Mr. Thayer agreed. Mr. Ziesmer continued his presentation reviewing Schedule D, R&C Fund Repayments, on the Summary page on page 3. This line item has a reduction of approximately $562,000 from the prior year. The reduction is explained primarily by two activities being removed from the schedule. The change out of the turbine nozzle units project has been pulled and is no longer required. The $400,000 critical spare nozzle assembly project was transferred to Schedule A. Mr. Ziesmer realized that per a previous BPMC resolution, projects under $500,000 are not to be included in Schedule D. Mr. Ziesmer directed members’ attention to page 4, Schedule A, capital purchases not funded by R&C Fund, which increased by approximately $600,000. He discussed that a couple of the projects were originally in the FY2026 Budget and have been moved to the FY2027 Budget. Mr. Ziesmer highlighted again that the critical spare nozzle assembly project is included in Schedule A. Additionally, a couple of projects were shifted from maintenance work to Schedule A because they are capital activity, rather than O&M activity. Mr. Ziesmer focused members’ attention back on the Summary page. He discussed the transfer to operating reserve line item in the amount of $155,715 reflects the increase in the operating reserve balance that is needed. The requirement is to keep 20% of the balance of the O&M cost from Schedule B. Mr. Ziesmer reviewed that the debt service line-item totals approximately $12 million. This amount is based off the debt amortization schedule for Bond Series 11 required project work funding. The total amount of the expenses is approximately $23 million. The total revenue amount is also approximately $23 million. Mr. Ziesmer noted that the interest income of about $235,000 is estimated using the interest rate as of January of 2.51%. This is similar to the prior year’s interest amount. Mr. Ziesmer indicated that the utility contributions shown in Schedule C total $23,466,754. He noted that the utility contribution is identified by percent share. It shows previous years, both as an annual amount and as a monthly amount. Mr. Ziesmer discussed Battle Creek project costs shown on the Summary page. He noted there will be a reduction in the Battle Creek budget. This is due primarily to the termination of a coho ___________________________________________________________________________ BPMC Minutes 3/20/26 Page 5 of 16 spawn study in the amount of $150,000 that was determined not to be required. There is also a reduction of approximately $30,000 to the operating reserves since the O&M costs are decreasing. Additionally, there is a reduction in capital reserves that is based off the debt service schedule of $2.7 million. Mr. Ziesmer noted that the IRS subsidy related to Bond Series 7 and Bond Series 8 is based off the debt series schedule. Mr. Ziesmer indicated that the total expenses for Battle Creek are $2,368,729. Using the zero-sum balance formula, the revenue will equal the expenses. Mr. Ziesmer estimated the interest income total at approximately $150,000. The utility contributions total $2.2 million. This is a reduction of approximately $230,000 from the prior year. Mr. Ziesmer directed members’ attention to the SSQ Line revenues and expenses. He noted that Schedule I is the SSQ Line O&M expenses. There was a small increase for the year due to administrative labor costs and overhead line maintenance labor costs. Another addition to the budget this year is the capital projects for the SSQ Line in the amount of $250,000 related to upgrades at Daves Creek and the Soldotna SVC. Mr. Ziesmer explained that the increase in the operating reserve balance reflects the increase in the O&M costs to match the 20% reserve requirement. He discussed that the debt service cost is for Bond Series 10. The amount is based on the Bond Series 10 Debt Service Schedule. The total SSQ Line expenses are approximately $985,000. He estimated the interest income and noted that the utility contributions are $968,197. Mr. Ziesmer highlighted that the overall increase in expenses in the budget is approximately 3.9% compared to the prior year’s budget. Vice Chair Miller expressed appreciation to Mr. Ziesmer for his detailed review of the proposed FY2027 Budget. He indicated that the members would vote on accepting the budget this morning. Mr. Janorschke asked Mr. Ziesmer if it would be prudent to have someone from the BPMC, perhaps the Vice Chair, participate in the Bradley Lake tours. Mr. Thayer responded that he participates in the tours as a representative of the BPMC. He noted that the planes are limited in size and the number of people on the planes is maximized. Mr. Thayer discussed that visitors to the site included Senator Lisa Murkowski, two FERC Commissioners, a Lieutenant Governor, the Speaker of the House, and approximately thirty legislators. He noted that everyone who has visited Bradley Lake has come back as an advocate. Mr. Janorschke clarified that he views Mr. Thayer as representing the State as the owner of the project, rather than the BPMC, who is paying for the project. He agrees that he has spoken to many big supporters. He believes that having another BPMC member participate in the tours serves two purposes; to ensure that the BPMC who is paying the costs is represented on the tours, and to ensure that members of the BPMC visit the project occasionally. Mr. Janorschke thinks this adds credibility overall and is a suggestion for the group to explore. He complemented Mr. Thayer on his great job facilitating the tours. Mr. Thayer noted that the tours have resulted in the Legislature helping to fund this project, including almost $20 million for the Bradley Expansion, and other projects. Mr. Thayer discussed that additional trips are not an issue. Usually only one person, Mr. Thayer or staff, goes on the tour in order to maximize the plane and to specifically ___________________________________________________________________________ BPMC Minutes 3/20/26 Page 6 of 16 advocate for key funding points. Vice Chair Miller reiterated to Mr. Thayer to please let the members know if there is an opportunity for someone to attend a tour. Mr. Thayer agreed. Vice Chair Miller noted that CEA went on a tour of Bradley Lake and the Beluga Power Plant with AEA last summer and had outstanding support from Mr. Thayer and his team. Mr. Reisterer expressed appreciation from the Budget Subcommittee for Mr. Ziesmer’s efforts on the budget process and for the Budget Versus Actual Report. Vice Chair Miller agreed to the praise and appreciation of Mr. Ziesmer. Vice Chair Miller inquired about the costs regarding the adjudication with the Renewable Energy Certificates. He asked if the costs are in the budget or out of the budget, and how those are treated from a cost recovery perspective. Mr. Thayer noted those costs are not included in the budget, but he thinks it would be great if those costs were included in the budget because it is a BPMC issue. MOTION: A motion was made by Mr. Hickey to approve the FY27 BPMC Budget. Motion seconded by Mr. Million. Mr. Janorschke asked Mr. Reisterer if he has any other comments to add. Mr. Reisterer believes he covered everything. He noted that Sarah Lambe, HEA, and Sherri Highers, CEA, are also in attendance and are available for additional comments. Vice Chair Miller asked if Ms. Lambe or Ms. Highers would like to comment. Sherri Highers responded to the legal costs that are not included in the budget and noted that those expenses will not be charged against Bradley Lake. Vice Chair Miller agreed that it was his understanding as well. Sarah Lambe noted that she believes Mr. Reisterer did a good job of summarizing follow-up questions and explanations. Vice Chair Miller thanked Ms. Lambe and Ms. Highers. Mr. Janorschke expressed appreciation to Mr. Ziesmer, Mr. Reisterer, and the Committee for scrutinizing the budget. Vice Chair Miller echoed the expression of appreciation. There were no other comments or questions. A roll call was taken, and the motion passed unanimously. 8. OLD BUSINESS A. AEA Capital Project Financing Mark Billingsley, AEA General Counsel, provided an update on the Capital Project Financing. Mr. Billingsley noted that he will review the slideshow which highlights the Bradley Lake Expansion Project (Bradley Project) and the Cook Inlet PowerLink (CIPLink) Project. Subsequent agenda items ___________________________________________________________________________ BPMC Minutes 3/20/26 Page 7 of 16 will cover the Bradley Project and CIPLink, and the engineers will provide details regarding the project updates. Mr. Billingsley stated that the total project cost for Bradley Project is $400 million. There has been $20.7 million raised to-date. However, those funds were preconstruction costs and are not included in the $400 million total still needed. The total project cost for CIPLink is $413 million. There has been $270 million raised to-date. Of that amount, $206 million is from the Grid Resilience and Innovation Partnerships (GRIP) grants, $50 million is from the Series 11 bonds, and $14 million is from State appropriations. The construction cost timeline for CIPLink will pick up quickly as procurement begins, and construction will begin in a couple of years. Mr. Billingsley noted that Mr. McLaughlin will provide an update on the Bradley Project later in the meeting. Mr. Billingsley commented that the construction cost timeline for the Bradley Project has remained the same since the last review. He noted that the expert partners include DOWL and Stantec, who are providing the engineering work, Hunton, who is helping with the tax credit, Orrick, who is the bond counsel, and PFM, who is providing financial advice and analysis. Mr. Billingsley discussed that staff has submitted one loan application to the U.S. Department of Energy’s (DOE) Energy Dominance Financing, previously called the Loan Programs Office. That loan application took a significant amount of work to complete. He showed a picture of the three binders’ worth of information submitted. Mr. Billingsley highlighted the list of the top five finance options staff are pursuing. The bottom two options listed are the most expensive options, with private placement. Out of the top three options, staff are evaluating which of those is the least expensive, has the best timing, and the best eligibility. Mr. Billingsley reviewed the top option, which is the application that was submitted for the Bradley Project to DOE’s Energy Dominance Financing Title 17 loans. They have a preference for billion-dollar projects, but they are open to financing the Bradley Project. The CIPLink Project is not eligible because of federal support restrictions. The second option is the U.S. Department of Agriculture (USDA) Rural Utilities Service (RUS) Program, which has both a project borrower program and a system borrower program. Both the Bradley Lake Project and the CIPLink Project are eligible under the system borrower program. The third option is tax-exempt bonds. Only the Bradley Project is eligible for tax-exempt bonds. Mr. Billingsley noted that staff went through the process to receive an allocation of the State’s volume cap for local furnishing bonds equivalent to the amount needed for tax exempt bonds. The allocation must be issued within a three-year period, and every year it will be rolled over. It is possible that two series of tax-exempt bonds will be necessary due to timing issues. Mr. Billingsley commented that the final two options are more expensive and do not take as much time to complete their application processes. He noted that the National Rural Utilities Cooperative Finance Corporation (NRUCFC) is a lender in Alaska. Mr. Billingsley advised that staff are reviewing the IRS Code 48E regarding investment tax credits (ITC) for the Bradley Project. CIPLink is not eligible to inquire. There is a possibility of up to $100 million in tax credits for the Bradley Project if eligibility can be established. Before the tax credits can be maximized, the project must reach tax credit eligibility, which could be in 2032, the year after commissioning. After which, the IRS must complete their due diligence. ___________________________________________________________________________ BPMC Minutes 3/20/26 Page 8 of 16 Vice Chair Miller asked what the concerns are regarding ITC eligibility. Mr. Billingsley explained that the tax credits are for a new unit or addition of capacity. The Bradley Project is not really adding capacity but is channeling more water for megawatt hours. Staff is encouraging the U.S. Treasury to view the project in a different way. Mr. Thayer commented that Senator Dan Sullivan set up a meeting between AEA and the Assistant Secretary of Treasury and tax attorneys. Vice Chair Miller believes there is a much greater benefit with a greater capacity factor from the facility, rather than a smaller bit of additional capacity. Mr. Janorschke noted that since there is no change in capacity, the project does not qualify for an ITC. He asked if the Dixon Diversion has contemplated installing a 20-megawatt turbine next to the two that are currently there, so that the project could then qualify. Mr. Janorschke expressed his understanding that any improvement to capacity would apply to the entire project. Mr. Thayer commented that legal counsel believes that the Bradley Project does possibly qualify. Work is ongoing with the Secretary of Energy to make that determination. Mr. Thayer explained that beginning construction in 2027 would not be possible if the decision were made today to install a 20-megawatt turbine, and the work with the Federal Energy Regulatory Commission (FERC) would be compromised. The initial application has been filed with FERC and staff met with all five FERC Commissioners, who hope to begin in June and have an answer within a year. Mr. Thayer reiterated that there are a few paths that could be taken to potentially be eligible for an amount of the ITC up to $100 million. Vice Chair Miller acknowledged that the project is not an insignificant amount of energy. The output of Bradley Lake is being increased by 50%. Mr. Thayer agreed and noted that argument is being made and discussed. Mr. Zellers mentioned previous discussion regarding an energy recovery turbine at the end of the tunnel at Bradley. Mr. Thayer agreed there was talk of that. Mr. Billingsley commented on the discussion regarding a 1-megawatt turbine. However, even that would probably push the schedule back quite a bit. Staff are also reviewing the raised dam, which may help the situation. Mr. Billingsley noted that he does not want to get hopes up yet, as the process and effort continues to receive any amount, even $24 million, which would benefit everybody directly or indirectly. Mr. Billingsley discussed that strategies to maximize the tax credit dollar amount have begun because of the requirements that come with issuing a Request for Proposal (RFP). Mr. Billingsley reviewed that another project that needs potential funding is the SSQ Transmission Substation Upgrades Project that began in 2024 and is expected to be completed in 2029. The current cost estimate is $178.5 million. The $90 million that has been raised to date was allocated ___________________________________________________________________________ BPMC Minutes 3/20/26 Page 9 of 16 from Series 11. The funding options mentioned earlier could apply to the gap in funding for the SSQ Upgrades Project. This project is included in the total pursuit of funding for all the projects. Mr. Janorschke requested clarification regarding the CIPLink slide noting that capacity is 200 megawatts. He previously understood that the project would start with 100 megawatts. Mr. Billingsley believes that is accurate. Mr. Janorschke requested clarification of what is meant by Target Completion 2032 Shovel-ready status. Mr. Billingsley believes that is a typographical error. Mr. Thayer explained that wording is supposed to mean that the project is in process and should be completed by 2032. Mr. Janorschke asked how confident staff is on the estimated cost of $413 million. Mr. Billingsley indicated that number is from the most recent cost estimate. Mr. Thayer commented that the slideshow gives an overview, and if members want to enter into executive session, then additional information regarding the options can be discussed. AEA’s goal is to present the options and to determine the eligibility for the options. The hope is to refine the options and present them to the AEA Board in early summer. After which, the options will be brought before the BPMC’s Finance Committee for a thorough review and determine the best option. It is likely that multiple scenarios will be presented simultaneously for the two different projects. The goal is to have the Bradley Project financing piece finalized this year, and the CIPLink financing piece finalized this time next year. Mr. Thayer discussed the possibility of adding the transmission cost to the application. He explained that if there is funding at 4%, that might free up the bond for other use. These types of decisions will have to be made by the BPMC and the AEA Board. Even though this information is preliminary, AEA has made two separate trips to Washington, D.C. to get to the current position of due diligence. Follow-up is underway with the Assistant Secretary of Treasury on his requests. Vice Chair Miller asked if the BPMC Finance Subcommittee has been involved. Mr. Thayer noted they have not been involved. He explained that the current focus is on determining which funding the projects qualify for, and which funding the projects do not qualify for, and the terms and conditions of that qualifying funding. Mr. Thayer does not think the BPMC Finance Subcommittee would want to be involved in completing a total of four 1,000-page applications just to determine eligibility. Based on those applications, the determination will be made what financing structures the projects qualify for. Once determinations are made, the qualifying information will be brought back to the BPMC. Mr. Billingsley commented that consideration is being taken to calculate the breakeven amount to justify using tax credits rather than tax exempt bonds. Additionally, calculations are considered for dollars per kilowatt hour, the total cost of the loan, and life of the loan. If the SSQ Line project is included, this might help meet the equity requirement for a DOE loan. There has been no final decision. Preliminary work continues. Mr. Thayer noted that Sterling to Quartz Creek is a designated line, but the Soldotna to Sterling Line is HEA’s line, and he is not aware that the BPMC has formalized an agreement of how those ___________________________________________________________________________ BPMC Minutes 3/20/26 Page 10 of 16 upgrades would be completed and treated. Mr. Thayer commented that conversation needs to occur sooner rather than later. Mr. Billingsley stated that both the SSQ Line and CIPLink depend on those upgrades. There were no other comments or questions. A brief at-ease was taken. B. Dispute Resolution Process – Wheeling Services Agreement Vice Chair Miller commented that his understanding is that arbitration will not be used. He asked if anyone else has additional information on this item. Mr. Million does not believe there is much more to add at this point. The last time the item was discussed, the process was reviewed. The RTO hearings took precedence. There were no other comments or questions. C. CIPLink Update Jim Mendenhall, AEA, reported on CIPLink. Mr. Mendenhall showed members a sample piece of cable that is similar to the cable that could be used for the project. He discussed that work is ongoing on planning, permitting, purchasing, and payments. He noted that Mr. Billingsley reviewed the financing side of the project. Work with HDR continues for the planning and environmental permitting for the upcoming marine season. Additionally, the Stantec engineers are coordinating to finalize the scope and the procurement of a marine survey vessel contractor to conduct geophysical testing. This data will be collected this summer in order to refine the route for the cable. After the initial route is determined and the subsurface composition is identified, then the cable design can be planned. Mr. Mendenhall noted that AEA is pursuing a U.S. Army Corps of Engineers Nationwide Permit for the survey activities. Additionally, work will occur under the Endangered Species Act. Stantec continues to work on procurement activities for both the HVDC converter stations and for the cable. They are preparing requests for information from vendors and will move to staged purchases with commitments for planning and procurement. Mr. Mendenhall noted that the sample cable is made in the U.S. by Nexans. He believes they are the only subsea cable manufacturer in the U.S. It is unknown at this point if the Nexans cable can be used or if the project will have to apply for a Build America, Buy America Act (BABA) waiver. Mr. Mendenhall expects that all the converters will be sourced from foreign manufacturers in Europe or Asia. Mr. Mendenhall discussed that negotiations are ongoing with DOE regarding Budget Period 2. The DOE required removal of costs for the community and benefits program (CBP), which was eliminated. Some of those funds were retained. However, the DOE will issue a change order to take back about $400,000 in costs. Staff have the scope and budget confirmed and hope to get that approved and finalized from DOE soon. ___________________________________________________________________________ BPMC Minutes 3/20/26 Page 11 of 16 Mr. Mendenhall reiterated that Mr. Billingsley reviewed the capital stack development. To date, AEA has secured $64.2 million in combined State appropriations and the Bradley bonds. An additional $142.3 million in funding is being pursued. He discussed that the project expenditures through June 2025, which have been billed and paid for, were about $1.1 million. The total expenditures through December 31, 2026, are $1.6 million. The additional amount will be billed after the contract is finalized for Budget Period 2. Mr. Mendenhall commented that Owned Assets recently hired an individual to support the development and permitting activities associated with the project and will also work on Bradley and other AEA infrastructure projects. The position will support coordination of environmental reviews, agency consultations, and permitting activities across the projects. Vice Chair Miller asked Mr. Mendenhall for his opinion on the $413 million budget number. Mr. Mendenhall expects the match to be decreased by approximately $400,000 for community benefits. The most recent estimate achieved the $413 million budget number. This is a high-level estimate and could be plus $30 million or less $15 million. Staff’s goal is to achieve the project within that price range. Mr. Mendenhall reminded the members that the scope was previously reduced from $200 million to $100 million, and evaluations are ongoing regarding whether there should be two cables or three cables. Mr. Janorschke commented that he was thinking there would be two cables. He asked if fiber will be included. Mr. Mendenhall noted they can put fiber with it. With an AC cable, a conduit can be placed for fiber, but it is not done for others. He explained that the cable being considered has a much greater life than fiber and so they will not include the fiber. Also, the fiber cannot be included in the insulation block. Mr. Mendenhall noted that the fiber would probably be attached to the outside. The expectation is there will be fiber, but it will not be embedded in the cable. Mr. Janorschke asked if there are two or three cables, are they going to be bundled all together. Mr. Mendenhall responded that possibility is being discussed. Two cables will probably be bundled. Additionally, the consideration is being reviewed to move north of the OSK dock because that is where most of the marine activity is where there might be a cable drag. Vice Chair Miller noted there are eight years to complete the project. He asked Mr. Mendenhall when is the target completion date. Mr. Mendenhall stated that the contract requires completion by August 31, 2032. That was eight years from the date of the notice to proceed. The plan is to finish in the spring of 2032. Based on Stantec’s last evaluation, that date was achievable. Mr. Zellers asked Mr. Mendenhall what is considered the highest risk on the project. Mr. Mendenhall believes there is risk in how the cable is buried, if it is trenched, jetted in, or laid on the ground. A typical cable ship cannot be used because of the high tides and location. Focus needs to continue to ensure that the procurement and progression is ongoing to get under contract. Additionally, the terminus of the HVDC needs to be finalized. Originally, it was going to terminate in Nikiski. However, based on work from EPS, there could be a benefit to making the ___________________________________________________________________________ BPMC Minutes 3/20/26 Page 12 of 16 Soldotna substation the terminus. Those issues still need to be resolved. Mr. Mendenhall commented that it is also unknown what the actual costs will be. This is a concern. The goal is the $413 million budget amount, but cost increases are of concern. Vice Chair Miller noted that all construction projects are unfortunately experiencing cost increases and considerations. Mr. Mendenhall gave the example of the cost increases for the SS Line from $24 million to $36 million. D. Bradley Lake Expansion Project Update Vice Chair Miller requested Mr. McLaughlin to provide the Bradley Lake Expansion Update. Mr. McLaughlin discussed that staff was successful in submitting the draft amendment application to FERC on February 13, 2026. The application is complete and includes a preliminary draft environmental analysis. Significant work occurred to complete the application and submit it on time. Coordination has begun with the resource agencies to review the results of the two years of studies and the contents of the environmental assessment. Mr. McLaughlin discussed that AEA hosted a Terrestrial Resources meeting with agencies on March 4th, and an Aquatics Resources meeting on March 5th to discuss impacts to aquatic life on the Lower Martin River. Development talks are ongoing with the resource agencies to create a mutual agreement on Protection, Mitigation, and Enhancement (PME) measures. This includes discussions regarding the Minimum Instream Flow so that salmon can still travel upstream and get to their spawning habitat. The request is for the resource agencies to submit their comments by mid-April. Staff encourage utility representatives to review the application and submit any comments to Mr. McLaughlin by the end of April to incorporate all the information into the final amendment application. The target date to submit the final amendment application to FERC is mid-June. FERC indicated they would target for a year turnaround to approve the application. Mr. McLaughlin noted that a new cost estimate for Dixon Diversion was developed. The total cost is approximately $400 million. The reasons for the increases are included in the update. The current efforts include planning and work for the busy subsurface investigation season. Additional geotechnical work will be conducted this summer. Mobilization will occur during May high tide window and work includes drilling a couple of holes in front of the spillway while lake levels are low, PS logging through the dam crest, and drilling two deep boreholes along the proposed tunnel alignment. The time budgeted for these efforts is 35 days. Also scheduled at the end of June is the third Board of Consultants site visit and meeting. This meeting overlaps with the timing of the drilling activities. Mr. Million asked for the original cost estimate. Mr. McLaughlin indicated that the cost estimate in November 2023 was $342 million. Mr. Thayer explained some of the cost overrun includes the expected FERC required modifications of the dam due to relicensing. This work will occur at the same time mobilization occurs for the project. Mr. McLaughlin noted that this includes updating the probable maximum flood studies. It was discovered that current spillway as constructed would not pass the probable maximum flood. A certain number of modifications to the dam and spillway ___________________________________________________________________________ BPMC Minutes 3/20/26 Page 13 of 16 are anticipated that will be required by FERC. This is built into the cost estimate. Vice Chair Miller asked Mr. McLaughlin to follow up and provide the levelized price per megawatt hour of the upgrades from the original project costs. Mr. McLaughlin agreed to provide the information. He noted that a financial model was recently produced that showed that the expansion project would be approximately 78 cents per kilowatt on all Bradley power. Mr. Janorschke expressed appreciation to Mr. McLaughlin for the update. He asked if the existing dock will be used for the Dixon Diversion. Mr. McLaughlin agreed. Mr. Janorschke noted that the dock is 35 years old and is flaking paint. He stated that they tried to get a permit to sandblast it and paint it, but it got pushed back because the requirements include capturing all the paint chips and sandblasting sand. Mr. Janorschke noted that any help that AEA can get from the State on that front would be greatly appreciated. Mr. Janorschke asked Mr. Jorgenson if his summary was accurate. Mr. Jorgenson agreed. He added that the problem is that the saltwater is now eating into the base metal because the coating had been scarred by the ice. When the permit was initially requested, there were no issues, but then the permitters later came back and said that all the sandblasting sand had to be captured. This is rather difficult because of the ocean tides. Once the contractor saw the new requirements, they declined the contract. New RFPs have been issued twice trying to obtain another contractor, but no one is willing to take on the work with the new conditions attached. Mr. Thayer indicated that AEA was unaware of the situation. He requested Mr. Jorgenson draft a summary of the details and he will follow up and work on advocating for the work to proceed. Mr. Thayer asked how big the painting project is and the estimated budget. Mr. Jorgenson noted that the original quote for the sandblasting and recoating was $600,000. When the requirement was added to recapture everything, the estimates came in at $1.2 million, but no one was willing to move forward even at that budget. Vice Chair Miller expressed appreciation to Mr. McLaughlin for his report. He noted this is another outstanding project for the Railbelt. There were no other comments or questions. E. SQ Upgrade Update Mike Miller, CEA, provided the update on the SQ Upgrade. Mr. Mike Miller discussed activities of note since the prior BPMC meeting in January. Vendor drawings have been received for review of approval for the steel structures. All the materials have been purchased. The original budget was $9.9 million. The actual costs are $11.6 million. This is due mostly to the steel structure cost increases. The design package is close to 90% and is schedule for the beginning of April. The intent is to solicit bids for construction in mid-May and issue a Notice to Proceed (NTP) construction in August on Project 2. There will be approximately eighty outage days, most likely in the first quarter of 2027. Discussions are ongoing to potentially shift some of the work to the fourth quarter of 2026. ___________________________________________________________________________ BPMC Minutes 3/20/26 Page 14 of 16 Mr. Mike Miller discussed that Project 3 has received a draft geotechnical report and preliminary foundation design work has begun. Work is ongoing for the steel drawings for procurement. The intent is to release an RFP at the beginning of May. There were no comments. 9. OPERATORS REPORT Larry Jorgenson, HEA, provided the Operator’s Report. Mr. Jorgenson indicated that he was standing in for Martin Law, HEA, today. Mr. Jorgenson indicated that the Operator Report is fairly normal. One forced outage occurred on Unit 2. Dispatch gave a command to shut down but then connected back to the grid. The emergency stop was then used to keep the unit offline. Mr. Jorgenson explained that the coil had burned up on a shutdown relay. The device was identified, replaced, and tested. All is back to normal. Additionally, there was a leaking cylinder from the newly installed Kidde Fire Protection System. The replacement cylinder was received and will be installed in the upcoming outage next month. The work on the damage to the residence from the fire protection leak has been completed. There were no comments or questions. 10. COMMITTEE REPORTS A. Budget vs. Actuals Mr. Ziesmer discussed the Bradley Lake Budget to Actual Expenses Report as of December 31, 2025. He explained that there was no FY26 activity recorded for Schedule A, Non-R&C Capital Projects for Bradley Lake. Of the $521,000 budgeted amount, approximately $271,000 is scheduled for completion within the fiscal year. These projects are highlighted in the report. The two projects that are not highlighted, are expected to be deferred and were included in the FY27 Budget that was approved earlier in the meeting. The total O&M expenses were approximately $3 million, which is approximately $620,000 below budget. Most of the FERC categories are within or close to budget. Mr. Ziesmer noted that FERC 544 Maintenance of Electric Plan contractual expenses was over budget by approximately $25,000, mostly due to costs related to the braker and relay testing work. FERC 545 Maintenance of Miscellaneous Hydraulic Plant was over budget by approximately $21,000 in contractual expenses. This is largely due to crane inspection work and the nozzle rebuild activities. FERC 920 & 930 Administrative Expense was over by approximately $116,000, related to payroll and fringe costs, and higher professional consultants’ costs. FERC 928 Regulatory Commission Expenses was under budget by $288,000, primarily due to the timing of invoices. This variance is expected to decrease. Mr. Ziesmer reviewed Schedule D Renewal and Contingency (R&C) Fund Disbursements and Repayments. The R&C purchases totaled $262,582, mostly related to the fire alarm system replacement and the Bradley Lake Expansion Project. The cumulative costs for the Bradley Lake Expansion Project since inception total $10.28 million. Mr. Ziesmer noted there have been no FY2026 activity as of December 31, 2025, for Schedule E Battle Creek Non-R&C Capita Purchases. Mr. Ziesmer reviewed Schedule F Battle Creek O&M expenses. The total amount was $305,448, which is approximately $61,000 below budget. Most of the costs in this section are attributable to ___________________________________________________________________________ BPMC Minutes 3/20/26 Page 15 of 16 the standard 4% allocation for Bradley Lake. Mr. Ziesmer reviewed Schedule I SSQ Line O&M expenses. The total expenses were approximately $10,000, which is $126,000 below budget. The majority of the costs are associated with overhead line maintenance. Mr. Ziesmer reviewed Appendix A, which is related to Bond Series 11 funding. The cumulative spending was $17,603,200. The total costs for the Oscillation Dampening Service contracts were $1,865,245. Mr. Zellers noted that he believes there was one project on page two, the Limitorque Actuators, which was not highlighted in green that was also deferred to the FY27 budget. Mr. Ziesmer explained that his overall understanding is that the effort will take six or seven years, and the amount of $35,000 will be included in the budgets for the next few years. There were no other comments or questions. B. O&D Report Josh Crowell, MEA, presented the O&D Committee Report. Mr. Crowell indicated that the focus during the last couple of meetings regarded the O&D’s budget submittal to the Budget Subcommittee. There were no comments or questions. 11. EXECUTIVE SESSION: - (Bylaws Section 5.11.4) –To discuss confidential matters the immediate knowledge of which would clearly have an adverse effect upon the finances of the Authority or the Project. No Executive Session was necessary. 12. MEMBERS COMMENTS Mr. Million expressed appreciation for the efforts in today’s meeting, and particularly for the work of the Finance Subcommittee in creating the budget. Mr. Thayer highlighted AEA’s team members for the financing efforts. He expressed appreciation to Mr. Ziesmer, Mr. Mendenhall, Mr. McLaughlin, and Josi Hartley, AEA for leading those efforts. Mr. Thayer noted that the Department of Government Efficiency (DOGE) efforts that had to be fulfilled last summer helped with the applications because AEA had some of the information. He reiterated that Ms. Hartley has been spearheading the applications. Mr. Thayer restated that he and Mr. McLaughlin met with all of the FERC Commissioners in D.C. to get the time schedule improved for Bradley. Mr. Thayer thanked Jennifer Bertolini, AEA, for supporting all the activities and for coordinating two trips to Washington, D.C. and organizing up to fourteen appointments each time. Mr. Zellers echoed the previous comments of appreciation for the budget work and for the explanations. He thanked AEA’s team for their work and great effort. ___________________________________________________________________________ BPMC Minutes 3/20/26 Page 16 of 16 Mr. Janorschke echoed the previous comments of appreciation, and for the updates on the projects. Mr. Thayer also expressed appreciation to the other AEA staff who are present today for their continued efforts. Mr. Hickey echoed the previous comments of appreciation for the diligent work and informative meeting. Vice Chair Miller echoed the previous comments of appreciation. He acknowledged the amount of work completed for the thorough updates and professional reports. Vice Chair Miller specifically thanked AEA’s staff for their work. There were no other comments. 13. NEXT MEETING DATE – May 1, 2026 14. ADJOURNMENT There being no further business for the committee, the meeting adjourned at 11:57 a.m. ____________________________ Arthur Miller, Vice Chair _____________________________ Curtis Thayer, Secretary CAPITAL PROJECTS FINANCING UPDATEMark BillingsleyGeneral CounselBPMCMay 15, 2026ALASKA ENERGY AUTHORITY AEA Capital Projects Financing Update | BPMC | May 15, 2026Project Photo PlaceholderBradleyy Lakee Expansionn ProjectActiveTotal Project Cost$420.7MIncluding all costsConstruction Cost$400MCapital Raised$20.7M4.9% of targetExpenditures$20.7MTo date4.9% funded$0$210M$420.7MFunding Progress: $20.7M raised of $420.7M total8 months remaining Financing deadline: December 2026Bradly Expansion -Updated Financial Status2 Cashflow & Funding Sources3Funding SourcesBS11 $6MMREF + match $2MSOA Approp $10.4MMR&C Fund $2.3MMTotal $20.7MMAEA Capital Projects Financing Update | BPMC | May 15, 2026FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031Funding Outstanding$- $600,000 $14,000,000 $55,000,000 $122,000,000 $157,900,000 $52,110,000Funding Secured$15,000,000 $5,700,000 $- $- $- $- $-Cumulative Spend$15,000,000 $21,300,000 $35,300,000 $90,300,000 $212,300,000 $370,200,000 $422,310,000 $- $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 $350,000,000 $400,000,000 $450,000,000 $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 $180,000,000Bradley Lake Expansion: Spend by State Fiscal Year (7/1 - 6/30) Cookk Inlett PowerLinkk (CIPLink)ActiveTotal Project Cost$412.2MIncluding all costsAEA Costs$21MContractor Costs$392MCables, converters, etc.Capital Raised$270.7M65.7% of targetExpenditures$1.6MTo dateFunding Gap$141.5MRemaining needed65.7% funded$0$206M$412.2MFunding Progress: $270.7M raised of $412.2M total21 months remaining Financing deadline: January 2028CIPLink-Updated Financial Status4AEA Capital Projects Financing Update | BPMC | May 15, 2026 Cashflow & Funding Sources5Funding SourcesBS11 $50MMSOA Approp $14.2MMTotal $64.2MMAEA Capital Projects Financing Update | BPMC | May 15, 2026 SSQ -Updated Financial StatusSoldotna-Sterling-Quartzz Creekk (SSQ)) Transmissionn Linee andd Substationn ProjectTotal Project Cost$173.9MIncluding all costsCapital Raised$90.0M51.7% of targetExpenditures$14.2MTo dateFunding Gap$83.9MRemaining needed51.7% funded$0$87M$173.9MFunding Progress: $90.0M raised of $173.9M total14 months remaining Financing deadline: June 2027Active6AEA Capital Projects Financing Update | BPMC | May 15, 2026 Cashflow & Funding Sources7Funding Source(s)BS11 $90MMAEA Capital Projects Financing Update | BPMC | May 15, 2026•Includes substations (3)•Based on updated cost estimates FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029Funding Outstanding$- $- $- $- $45,471,148 $38,453,807Funding Secured$6,150,000 $9,655,000 $18,190,000 $24,575,000 $31,430,000 $-Cumulative Spend$6,150,000 $15,805,000 $33,995,000 $58,570,000 $135,471,148 $173,924,955 $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 $180,000,000 $200,000,000 $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000SSQ and Substations: Spend by State Fiscal Year (7/1 - 6/30) Expert PartnersBond CounselPublic Finance Advisory& Capital PlanningTax CounselEngineering – Architecture –Environmental Consulting(Cook Inlet PowerLink)Engineering – Planning – Surveying(Bradley Lake Hydroelectric Project)8AEA Capital Projects Financing Update | BPMC | May 15, 2026 813 W Northern Lights Blvd, Anchorage, AK 99503  Phone: (907) 771-3000  Fax: (907) 771-3044  Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG MEMORANDUM TO: BPMC THROUGH: Curtis Thayer, Executive Director FROM: Jim Mendenhall, P.E., Director of Owned Assets DATE: May 12, 2026 SUBJECT: Cook Inlet PowerLink (CIPLINK) Update 1. Environmental Permitting and 2026 Marine Survey Planning AEA issued a Task Order to HDR to advance environmental permitting and planning for the summer 2026 marine survey season. Stantec, acting as Owner’s Engineer, is coordinating with AEA and HDR to finalize the survey scope and support procurement of a marine survey contractor. The objective of the 2026 marine survey program is to collect the geophysical, bathymetric, and environmental data necessary to refine the submarine cable route and landfall locations to reduce technical uncertainty for cable suppliers. The survey data will support development of a cable design that meets project environmental and engineering requirements and will inform future procurement and installation planning. AEA is pursuing a U.S. Army Corps of Engineers Nationwide Permit approach for survey activities. Informal consultation under the Endangered Species Act is anticipated to begin soon, including consideration of Cook Inlet beluga whale protections with low-impact survey methods. The anticipated agency review period is approximately 8–12 weeks, with permits targeted for issuance by July. Geotechnical drilling is not currently planned for the 2026 marine survey season. However, limited onshore boreholes may be completed later in the year at selected landfall locations to support design and permitting activities. 2. Development of Major Equipment Procurement Documents Stantec continues to support AEA in developing the procurement strategy and solicitation materials for the project’s major long-lead equipment, particularly the HVDC converters and submarine cable. These components are expected to have multiyear manufacturing lead times and represent critical path tasks for the project schedule. Alaska Energy Authority Page 2 of 3 Current work includes: a. Stantec has provided AEA with a draft Submarine Cable Supply and Installation Prequalification and Request for Technical and Budgetary Pricing Information document for review. b. Stantec is finalizing a similar document for the Converter Station Procurement approach. Early market engagement indicates that the global HVDC cable market remains constrained but more available than the converter market. Converter manufacturers typically require a preferred supplier or negotiated agreement before committing significant engineering resources. Firm pricing for these systems typically becomes available after FEED is complete. Near term procurement packages are expected to include converters and cables, with overhead AC transmission upgrades, substations, and termination facilities to follow. 3. Updates to Preliminary Design Report Over the past several months, AEA has been working with Stantec and EPS on value engineering related to the overall system design and integration of the final project into the Railbelt system. Through discussions with EPS, AEA has been evaluating relocation of the Kenai-side converter station from Beluga to Soldotna. This design change is expected to provide economic value, improve the project’s integration with the Railbelt system, and account for the eventual goal of increasing system transfer capacity from 100 MW to 200 MW. AEA is currently working with Stantec to update the preliminary design report to reflect this change. Once the report is updated, AEA will circulate it to the technical working group for review and feedback. AEA and Stantec will then host a workshop to facilitate discussion of the updated project design. 4. DOE Negotiations and Community Benefits Plan Adjustment AEA recently received a continuation amendment from DOE extending the project period of performance through June 30, 2027. The amendment also authorizes costs for the marine survey program and initial procurement activities, including capacity payments. Under this budget period, AEA is authorized to expend up to $65,339,639 on the project. DOE’s approval of the continuation amendment reflects its support for the project’s progress to date and the advancement of the authorized scope. With the elimination of the Community Benefits Plan (CBP) requirements under the DOE program, DOE requested that AEA identify credits associated with work originally budgeted to support CBP activities. AEA also requested approval to retain $262,969 of the funds originally allocated for CBP-related work and reallocate those funds to eligible project activities. DOE approved this request. The remaining $394,454 in federal funds originally allocated to CBP costs have been deobligated from the award. Alaska Energy Authority Page 3 of 3 5. Project Funding and Capital Stack Development AEA continues to evaluate options for completing the capital stack for CIPLink and other major Railbelt infrastructure projects. To date, AEA has secured $64.2 million in combined State appropriations and Bradley Lake bond proceeds to support project development. An additional $142.3 million in funding is being pursued to fully meet project cost share obligations. Project expenditures through June 30, 2025 totaled $1,150,569, all of which have been reimbursed by DOE. Total project expenditures through March 31, 2026 are $1,857,329. Expenses incurred since July 1, 2025 will be invoiced in accordance with the BP2 agreement. 6. Staffing Update Last month Owned Assets brought on board new staff member, Casey Reeves as an environmental engineer, to support project development and permitting activities associated with the CIPLink and Bradley Lake Expansion Projects. Owned Assets has also engaged Brite Niezek as a contractor for project scheduling, controls and compliance. MEMORANDUM TO: Bradley Project Management Committee Through: Curtis Thayer, Executive Director FROM: Ryan McLaughlin, PE, Senior Infrastructure Engineer DATE: May 15, 2026 RE: Bradley Lake Expansion Project Update Efforts over the past two months have largely been focused on preparing a mid-June submittal of the Final Amendment Application (FAA) for the Bradley Lake Expansion Project. AEA has received comments from utilities, resource agencies, FERC, and the public on the Draft Amendment Application (DAA) and is preparing comment responses and incorporating changes into the FAA. At the request of ADFG and USFWS, AEA has completed additional modeling for fish passage and sediment management. A minimum instream flow schedule is nearing consensus with the resource agencies. Sediment management flows, where we will drop the diversion dam Obermeyer gates to flush sediment buildup out of the diversion pool, have been modeled and will mostly occur during high flow events when flow exceeds tunnel capacity. AEA is developing adaptive management plans to monitor how the Martin River behaves with the proposed flow regime and include provisions to increase or decrease minimum instream flows a specified amount depending on how stream conditions change. AEA has been working to incorporate a MicroHydro turbine at the fishwater release valves in Bradley Dam to capture additional energy from the Bradley minimum instream flow releases. This would represent an additional 0.5-1MW of capacity and the design is planned to be incorporated into the FAA. This concept has been investigated in the past but was determined to not be feasible due to distribution power going from the powerhouse to the dam. The future 3-phase power upgrade will enable the MicroHydro installation. AEA received and is reviewing bids for a 3-phase transformer for Bradley. In July, AEA plans to procure additional long lead materials (cable, insulators) for the three-phase power upgrade and issue a tree clearing contract for Fall of 2026. Vegetation will need to be cleared in advance of the three-phase power construction due to bird avoidance windows in the spring/summer. Construction of the 3-phase power upgrade is expected in summer of 2027. The 2026 field season is underway. Crews have installed stream gages and cameras on the Martin River to continue discharge measurements in 2026. Drilling crews will mobilize equipment on the May 15-18 barge window and will be onsite for most of the summer. FERC has approved the revised Drilling Program Plan on May 6 which includes holes in front of the spillway, base of the dam, diversion site, and two deep boreholes midway along the tunnel alignment. A third Board of Consultants meeting is scheduled to overlap drilling activities June 23-25. Bradley Lake Operators Report Page 1 Bradley Lake Operator Report BPMC May 15, 2026 Unit Statistics: Generation Unit 1 (MWhrs) Unit 2 (MWhrs) Total (MWhrs) Mar. 2026 Apr. 2026 May *2026 15,716 11,889 3,665 14,016 9,678 1,692 29,733 21,567 5,358 Hydraulics Avg. Lake Level (ft.) Bradley Fishwater (ac ft.) Battle Creek MIF (ac ft.) Mar. 2026 Apr. 2026 May *2026 1,110 1,093 1,094 2,516 1,992 52 0 0 0 Battle Creek Inflows to Bradley (ac ft.) Mar. 2026 Apr. 2026 May *2026 0 0 0 *Lake Level – 1,094.3’ As of May 8, 2026 Activities • Forced Outages – On May 2, 2026, at 5:38 am Unit #2 tripped on low/low governor hydraulic oil pressure. The hydraulic pump motor breaker tripped on thermal overloads. We reset the breaker, assessed and calibrated the pressure switches and took motor amp readings. We did not find the cause of the trip. We will investigate further during our spring shutdown. • Dam/Spillway – Completed the monthly Dam Safety inspections. The road up to the dam is passable in a vehicle. We have repaired the road in areas that had minor wash outs. • Battle Creek Diversion- Secured for winter. Road up to the Diversion is still snowed in with drifts as deep as 6ft. • Safety – There have been no lost time or reportable accidents for the months of March, April and as of to date in May. Conducted a safety meeting in March. 10 2026 & Apr. 14, 2026. Next safety meeting is May 20, 2026. • Fire System- The control room and generator Kidde Fire Systems are fully operational. • Employee Housing- Complete installing the new entry doors in the employee apartments. • Vibration Survey – Turn Tech Inc. completed the vibration survey on the equipment in the powerhouse. No issues to report. • Voith – We received the deflector bushings and the new seal kits for the needle valves. • Biologist- Completed the annual eagle nest survey on May 4, 2026. • DOWL/Schnabel/Discovery Drilling will be mobilizing on site starting May 15, 2026. De-mobing on Aug 6, 2026. Bradley Lake Operators Report Page 2 Contractors/ Visitors • HEA – Larry Jorgensen, Safety Meeting. • Yukon Fire – Fire System testing. • Anderson Brothers Construction- Randall Anderson, Andrew Anderson and crew, Apt Doors. • HEA IT– Rachel Olsen, Marvin Super, plus 1- Setting up large format scanner. • HEA IT- John McClain PM server room. • Turn Tech Inc.- Pilip Coal, Vibration Study Bradley Lake, May 3, 2026. Lake Elevation 1094.3 Bradley Lake Operators Report Page 3 May 3, 2026 Overflow Ice on Road to Dam Battle Creek Diversion Inlet Grate Bradley Lake Tailrace April 29, 2026 Bradley Lake Operators Report Page 4 Mountain Goat Above the Spillway May 8, 2026 Fish Water Nozzle Ice Loader with Brush Hog Attachment Alaska Energy Authority Bradley Lake Budget to Actual Expenses 07/01/2025 to 02/28/2026 Page 1 of 12 FY24 FY24 FY25 FY25 FY26 FY26 BUDGET ACTUALS BUDGET ACTUALS BUDGET ACTUALS Install New Bradley Microwave System 518,000 45,215 - - - - Brush Hog for Front End Loader 150,000 - - 111,087 - - JLG All Terrain Fork Lift- New Purchase 190,000 213,942 - - - - Replace BL#5 2009 F150 Crew Cab Pickup 45,000 - - 48,995 - - Warehouse Heaters x2 (Replace) 5,000 - - - - - ISO Shipping Containers x2 (Replace) 40,000 30,700 - - - - Polaris Side by Side (Replace) - - 65,000 62,645 - - Crew Quarters Remodel - - 85,000 84,873 - - New Circuit Breaker - Generator #2 - - - 60,988 - - Contex HD Ultra X 3690 Color Scanner - - - 12,620 - - Replace DC Station Service Batteries - - - - 130,000 - Replace Needle Valve Position Arm Bushings - - - - 95,000 - Replace ION Meters - - - - 120,000 - AC unit in powerhouse server room - - - - 38,000 - Powerhouse Control Rm and Office Flooring - - - - 28,000 - Approach Path Indicator Lights (Replace) - - - - 40,000 3,889 Limitorque Actuators on fish water valve (Replace) - - - - 35,000 - Domestic water tank, controls, and filtration system (Replace) - - - - 35,000 - Replace Equipment Soldotna SVC Substation - - - - - 68,973 Total Non R&C Capital Purchases 948,000 289,857 150,000 381,209 521,000 72,862 BRADLEY LAKE CAPITAL PURCHASES NOT FUNDED BY R&C FUND ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT SCHEDULE A FOR THE PERIOD 07/01/2025 TO 02/28/2026 BRADLEY LAKE NON-R&C CAPITAL PURCHASES Page 2 of 12 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT BRADLEY LAKE OPERATIONS & MAINTENANCE BUDGET TO ACTUAL EXPENSES SCHEDULE B FOR THE PERIOD 07/01/2025 TO 02/28/2026 FY 26 FY 25 FY26 Approved Budget BUDGET % 07/01/2025 - 02/28/2026 HEA Actual CEA Actual AEA Actual Total Actual (Over) Under Budget to Date FY25 Approved Budget FY25 Actual Summary by expense type Staff Professional Services (Direct) 360,000 240,000 - - 331,053 331,053 (91,053) 312,585 501,917 Labor & Benefits 1,497,414 998,276 685,078 17,848 119,952 822,878 175,398 2,054,317 1,435,363 Travel 40,300 26,867 477 - 2,978 3,456 23,411 51,500 57,509 Training 55,000 36,667 14,512 - 1,214 15,727 20,940 55,000 7,211 Contractual 1,392,497 928,331 608,400 - 142,534 750,934 177,398 1,243,010 1,118,636 Consulting-Administrative 155,000 103,333 - - 20,026 20,026 83,308 315,000 46,433 Supplies & Materials 342,000 228,000 96,388 677 - 97,064 130,936 378,500 296,310 Other Costs 77,518 51,679 27,778 19,311 - 47,089 4,590 112,718 95,087 Equipment, Furniture & Machinery 20,000 13,333 15,762 - 583 16,345 (3,012) 35,000 19,940 Administrative Costs 2,549,839 1,699,893 46,700 - 1,186,644 1,233,344 466,549 1,978,224 2,088,063 Indirect Costs 1,543,116 1,028,744 871,632 - - 871,632 157,112 1,480,105 1,340,986 O&M 4% Allocation to Battle Creek (321,307) (214,205) - - - - (214,205) (320,638) - Total Bradley Lake Budget 7,711,376 5,140,917 2,366,727 37,835 1,804,983 4,209,546 931,372 7,695,321 7,007,455 FERC 535 - Operation Supervision & Engineering Operations Sup/Eng Bradley Lake Operating Labor & Benefits 109,196 72,797 71,650 - - 71,650 1,148 105,451 99,743 Travel 5,000 3,333 67 - - 67 3,266 5,000 668 Training 5,000 3,333 - - - - 3,333 5,000 - Contractual 3,000 2,000 - - - - 2,000 3,000 407 Supplies & Materials 25,000 16,667 1,153 - - 1,153 15,514 4,000 - Indirect Costs 157,071 104,714 99,336 - - 99,336 5,378 155,698 139,723 Bradley Lake Operating Total 304,267 202,845 172,206 - - 172,206 30,639 278,149 240,542 FERC 535 - Operation Supervision & Engineering Total 304,267 202,845 172,206 - - 172,206 30,639 278,149 240,542 FERC 537 - Hydraulic Expenses Hydraulic Expenses Bradley Lake Operating Labor & Benefits 81,895 54,597 54,579 - - 54,579 18 95,262 79,042 Contractual 15,000 10,000 - - - - 10,000 - - Supplies & Materials 10,000 6,667 1,310 - - 1,310 5,356 4,000 1,729 Indirect Costs 113,127 75,418 71,435 - - 71,435 3,983 109,250 108,693 Bradley Lake Operating Total 220,022 146,682 127,325 - - 127,325 19,357 208,512 189,464 FERC 537 - Hydraulic Expenses Total 220,022 146,682 127,325 - - 127,325 19,357 208,512 189,464 FERC 538 - Electric Expenses Electric Expenses Bradley Lake Operating Labor & Benefits 235,187 156,792 154,883 - - 154,883 1,909 218,044 227,478 Travel 7,000 4,667 303 - - 303 4,364 7,000 293 Training 30,000 20,000 14,512 - - 14,512 5,488 30,000 3,990 Contractual 18,000 12,000 12,133 - - 12,133 (133) 10,000 5,255 Supplies & Materials 23,500 15,667 1,493 - - 1,493 14,174 18,500 5,970 Indirect Costs 280,431 186,954 182,215 - - 182,215 4,739 262,004 268,318 Bradley Lake Operating Total 594,118 396,079 365,538 - - 365,538 30,541 545,548 511,305 FERC 538 - Electric Expenses Total 594,118 396,079 365,538 - - 365,538 30,541 545,548 511,305 FERC 539 - Misc. Hydraulic Power Generation Expenses Misc Hydro Power Exp Bradley Lake Operating Labor & Benefits 130,567 87,045 47,120 - - 47,120 39,925 107,742 78,868 Training 20,000 13,333 - - - - 13,333 20,000 - Contractual 606,317 404,211 377,251 - - 377,251 26,960 385,067 410,619 Supplies & Materials 30,000 20,000 14,724 - - 14,724 5,276 25,000 45,819 Equipment, Furniture & Machinery - - - - - - - - 2,563 Indirect Costs 122,323 81,549 66,077 - - 66,077 15,472 114,320 111,127 Bradley Lake Operating Total 909,207 606,138 505,172 - - 505,172 100,966 652,129 648,997 BRADLEY CIRCUITS/RADIO TO BERNICE LK Other Costs 35,695 23,797 22,845 - - 22,845 951 35,695 34,268 BRADLEY CIRCUITS/RADIO TO BERNICE LK Total 35,695 23,797 22,845 - - 22,845 951 35,695 34,268 BRADLEY CIRCUITS BERNICE LK TO ANCH Other Costs 29,773 19,849 - 19,311 - 19,311 538 29,773 28,985 BRADLEY CIRCUITS BERNICE LK TO ANCH Total 29,773 19,849 - 19,311 - 19,311 538 29,773 28,985 LOWER BRADLEY CIRCUITS/RADIO TO BARGE DOCK Other Costs 10,000 6,667 4,933 - - 4,933 1,734 45,000 24,085 LOWER BRADLEY CIRCUITS/RADIO TO BARGE DOCK Total 10,000 6,667 4,933 - - 4,933 1,734 45,000 24,085 FERC 539 - Misc. Hydraulic Power Generation Expenses Total 984,675 656,450 532,950 19,311 - 552,260 104,190 762,597 736,335 FERC 541 - Maintenance Supervision & Engineering Maint Supervision/Eng Bradley Lake Operating Labor & Benefits 117,056 78,037 73,570 - - 73,570 4,468 110,451 104,197 Indirect Costs 157,071 104,714 99,336 - - 99,336 5,378 155,698 139,723 Bradley Lake Operating Total 274,127 182,751 172,906 - - 172,906 9,845 266,149 243,920 FERC 541 - Maintenance Supervision & Engineering Total 274,127 182,751 172,906 - - 172,906 9,845 266,149 243,920 FERC 542 - Maintenance of Structures Maintenance of Structures Bradley Lake Operating Labor & Benefits 84,789 56,526 41,745 - - 41,745 14,781 89,710 67,928 Contractual 35,000 23,333 16,523 - - 16,523 6,811 126,000 103,435 Supplies & Materials 44,000 29,333 17,118 - - 17,118 12,215 70,000 40,551 Equipment, Furniture & Machinery 20,000 13,333 15,762 - - 15,762 (2,429) 20,000 14,623 Indirect Costs 115,838 77,226 58,285 - - 58,285 18,941 102,350 94,601 Bradley Lake Operating Total 299,627 199,752 149,433 - - 149,433 50,319 408,060 321,138 FERC 542 - Maintenance of Structures Total 299,627 199,752 149,433 - - 149,433 50,319 408,060 321,138 FERC 543 - Maintenance of Reservoirs, Dams & Waterways Maint Res, Dams, WWays Bradley Lake Operating Labor & Benefits 17,992 11,995 1,922 - - 1,922 10,073 51,783 13,050 Page 3 of 12 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT BRADLEY LAKE OPERATIONS & MAINTENANCE BUDGET TO ACTUAL EXPENSES SCHEDULE B FOR THE PERIOD 07/01/2025 TO 02/28/2026 FY 26 FY 25 FY26 Approved Budget BUDGET % 07/01/2025 - 02/28/2026 HEA Actual CEA Actual AEA Actual Total Actual (Over) Under Budget to Date FY25 Approved Budget FY25 Actual Contractual 6,500 4,333 11,113 - - 11,113 (6,780) 39,500 41,306 Supplies & Materials 20,000 13,333 - - - - 13,333 85,000 63,338 Equipment, Furniture & Machinery - - - - - - - 15,000 - Indirect Costs 22,556 15,037 2,979 - - 2,979 12,058 58,650 16,000 Bradley Lake Operating Total 67,048 44,699 16,015 - - 16,015 28,684 249,933 133,694 BRADLEY POWER TUNNEL MAINT (Dam) Contractual 15,000 10,000 6,337 - - 6,337 3,663 15,000 - BRADLEY POWER TUNNEL MAINT (Dam) Total 15,000 10,000 6,337 - - 6,337 3,663 15,000 - FERC 543 - Maintenance of Reservoirs, Dams & Waterways Total 82,048 54,699 22,352 - - 22,352 32,347 264,933 133,694 FERC 544 - Maintenance of Electric Plant Maintenance of Elec Plant Bradley Lake Operating Labor & Benefits 336,995 224,664 166,330 - - 166,330 58,333 309,110 261,477 Travel 4,500 3,000 108 - - 108 2,892 4,500 530 Contractual 24,000 16,000 37,839 - - 37,839 (21,839) 75,000 60,276 Supplies & Materials 40,000 26,667 8,816 - - 8,816 17,851 40,000 35,276 Indirect Costs 461,361 307,574 232,341 - - 232,341 75,232 423,178 367,649 Bradley Lake Operating Total 866,856 577,904 445,434 - - 445,434 132,470 851,788 725,208 FERC 544 - Maintenance of Electric Plant Total 866,856 577,904 445,434 - - 445,434 132,470 851,788 725,208 FERC 545 - Maintenance of Misc. Hydraulic Plant Maint of Misc Hydr Plant Bradley Lake Operating Labor & Benefits 82,339 54,893 42,774 - - 42,774 12,119 69,297 68,096 Contractual 45,000 30,000 46,260 - - 46,260 (16,260) 45,000 38,420 Supplies & Materials 68,000 45,333 45,522 - - 45,522 (189) 68,000 56,391 Indirect Costs 113,337 75,558 59,627 - - 59,627 15,931 98,957 95,152 Bradley Lake Operating Total 308,677 205,784 194,183 - - 194,183 11,601 281,254 258,059 FERC 545 - Maintenance of Misc. Hydraulic Plant Total 308,677 205,784 194,183 - - 194,183 11,601 281,254 258,059 FERC 556 - System Control & Load Dispatching System Cntl & Load Disp Bradley Lake Operating Labor & Benefits 20,174 13,449 22,100 - - 22,100 (8,651) 20,174 25,978 Contractual 143,500 95,667 40,415 - - 40,415 55,252 103,500 49,188 Supplies & Materials 12,000 8,000 - - - - 8,000 12,000 854 Bradley Lake Operating Total 175,674 117,116 62,515 - - 62,515 54,601 135,674 76,020 Snow Measurement Bradley Lake Operating Contractual 10,000 6,667 - - - - 6,667 10,000 9,600 Bradley Lake Operating Total 10,000 6,667 - - - - 6,667 10,000 9,600 Seismic Service Bradley Lake Operating Contractual 66,498 44,332 - - 33,247 33,247 11,086 64,868 62,273 Bradley Lake Operating Total 66,498 44,332 - - 33,247 33,247 11,086 64,868 62,273 Streamguaging Serv Bradley Lake Operating Contractual 221,682 147,788 - - 109,287 109,287 38,501 216,275 269,784 Bradley Lake Operating Total 221,682 147,788 - - 109,287 109,287 38,501 216,275 269,784 Permits Bradley Lake Operating Other Costs 350 233 - - - - 233 350 240 Bradley Lake Operating Total 350 233 - - - - 233 350 240 FERC 556 - System Control & Load Dispatching Total 474,204 316,136 62,515 - 142,534 205,049 111,087 427,167 417,917 FERC 562 - Station Expenses Station ExpensesBradley Lake Operating Labor & Benefits 99,812 66,541 8,405 17,848 - 26,253 40,288 96,612 135,584 Travel 1,800 1,200 - - - - 1,200 2,500 773 Contractual 103,000 68,667 60,529 - - 60,529 8,137 79,800 32,843 Supplies & Materials 45,000 30,000 6,251 677 - 6,928 23,072 23,000 25,534 Other Costs 1,700 1,133 - - - - 1,133 1,900 1,536 Bradley Lake Operating Total 251,312 167,541 75,186 18,525 - 93,710 73,831 203,812 196,269 FERC 562 - Station Expenses Total 251,312 167,541 75,186 18,525 - 93,710 73,831 203,812 196,269 FERC 570 - Maintenance of Station Equipment Bradley Lake Operating Total - - - - - - - - - FERC 570 - Maintenance of Station Equipment Total - - - - - - - - - FERC 571 - Maintenance of Overhead Lines Maint of OH Lines Bradley Lake Operating Labor & Benefits 32,574 21,716 - - - - 21,716 36,500 23,486 Contractual 80,000 53,333 - - - - 53,333 70,000 35,229 Supplies & Materials 20,000 13,333 - - - - 13,333 20,000 11,965 Bradley Lake Operating Total 132,574 88,383 - - - - 88,383 126,500 70,681 FERC 571 - Maintenance of Overhead Lines Total 132,574 88,383 - - - - 88,383 126,500 70,681 FERC 920 & 930 - Administrative Expense AEA Bradley Fixed Admin Fees Bradley Lake Operating Staff Professional Services (Direct) 360,000 240,000 - - 331,053 331,053 (91,053) 312,585 501,917 Travel - - - - 2,978 2,978 (2,978) - 53,177 Training - - - - 1,214 1,214 (1,214) - 3,221 Consulting-Administrative - - - - 1,392 1,392 (1,392) - 2,153 Supplies & Materials - - - - - - - - 8,882 Other Costs - - - - - - - - 5,972 Equipment, Furniture & Machinery - - - - 583 583 (583) - 2,754 Administrative Costs 240,000 160,000 - - 117,745 117,745 42,255 172,500 455,441 Bradley Lake Operating Total 600,000 400,000 - - 454,965 454,965 (54,965) 485,085 1,033,515 Operating Committee Exp-Audit Page 4 of 12 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT BRADLEY LAKE OPERATIONS & MAINTENANCE BUDGET TO ACTUAL EXPENSES SCHEDULE B FOR THE PERIOD 07/01/2025 TO 02/28/2026 FY 26 FY 25 FY26 Approved Budget BUDGET % 07/01/2025 - 02/28/2026 HEA Actual CEA Actual AEA Actual Total Actual (Over) Under Budget to Date FY25 Approved Budget FY25 Actual Bradley Lake Operating Administrative Costs 45,000 30,000 - - 42,392 42,392 (12,392) 41,000 38,534 Bradley Lake Operating Total 45,000 30,000 - - 42,392 42,392 (12,392) 41,000 38,534 Operating Committee Exp-Legal Bradley Lake Operating Administrative Costs 80,000 53,333 - - 83,116 83,116 (29,783) 80,000 125,918 Bradley Lake Operating Total 80,000 53,333 - - 83,116 83,116 (29,783) 80,000 125,918 BRADLEY Finance Legal Services Total - - - - - - - - - Misc Admin Bradley Lake Operating Administrative Costs 13,000 8,667 - - 15,103 15,103 (6,436) 13,000 14,634 Bradley Lake Operating Total 13,000 8,667 - - 15,103 15,103 (6,436) 13,000 14,634 Professional Consultants Bradley Lake Operating Labor & Benefits 148,836 99,224 - - 119,952 119,952 (20,728) 744,181 250,437 Travel 22,000 14,667 - - - - 14,667 32,500 2,068 Supplies & Materials 4,500 3,000 - - - - 3,000 9,000 - Bradley Lake Operating Total 175,336 116,891 - - 119,952 119,952 (3,061) 785,681 252,505 FERC 920 & 930 - Administrative Expense Total 913,336 608,891 - - 715,528 715,528 (106,637) 1,404,766 1,465,107 FERC 924 & 925 - Insurance Premiums Insurance Premiums Bradley Lake Operating Administrative Costs 1,581,839 1,054,559 46,700 - 921,463 968,163 86,397 1,371,724 1,164,007 Bradley Lake Operating Total 1,581,839 1,054,559 46,700 - 921,463 968,163 86,397 1,371,724 1,164,007 FERC 924 & 925 - Insurance Premiums Total 1,581,839 1,054,559 46,700 - 921,463 968,163 86,397 1,371,724 1,164,007 FERC 923 - Outside Services Employed Outside Services Employed Bradley Lake Operating Consulting-Administrative 155,000 103,333 - - 18,634 18,634 84,700 315,000 44,280 Bradley Lake Operating Total 155,000 103,333 - - 18,634 18,634 84,700 315,000 44,280 FERC 923 - Outside Services Employed Total 155,000 103,333 - - 18,634 18,634 84,700 315,000 44,280 FERC 928 - Regulatory Commission Expenses FERC Admin Fees Bradley Lake Operating Administrative Costs 170,000 113,333 - - - - 113,333 180,000 213,420 Bradley Lake Operating Total 170,000 113,333 - - - - 113,333 180,000 213,420 FERC Related Prof Services BRADLEY FERC PART 12 INSPECTION Administrative Costs 300,000 200,000 - - - - 200,000 - - BRADLEY FERC PART 12 INSPECTION Total 300,000 200,000 - - - - 200,000 - - BRADLEY CONTRACTUAL ENGINEER-FERC LICENSE ISSUES Administrative Costs 120,000 80,000 - - 6,825 6,825 73,175 120,000 76,109 BRADLEY CONTRACTUAL ENGINEER-FERC LICENSE ISSUES Total 120,000 80,000 - - 6,825 6,825 73,175 120,000 76,109 FERC 928 - Regulatory Commission Expenses Total 590,000 393,333 - - 6,825 6,825 386,509 300,000 289,529 O&M 4% Allocation to Battle Creek (321,307) (214,205) - - - - (214,205) (320,638) - Total Bradley Lake Budget 7,711,376 5,140,917 2,366,727 37,835 1,804,983 4,209,546 931,372 7,695,321 7,007,455 - - - - - - - - - Page 5 of 12 Actual Projected Actual Projected Actual Projected @ 6/30/24 TO REPAY Budget @ 6/30/25 TO REPAY Budget @ 6/30/26 TO REPAY Budget Description Expense @6/30/24 FY24 Expense @6/30/25 FY25 Expense @6/30/26 FY26 R&C FUND PROJECTS Governor - 4,052,070 - - 4,052,070 - - 4,052,070 - Replace RFLS - 251,093 - - 251,093 - - 251,093 - Replace Runners - 1,946,733 - - 1,946,733 - - 1,946,733 - Replace cable from dam to power house - 2,321,923 - - 2,321,923 - - 2,321,923 - Replace power system stabilizer - 619,205 - - 619,205 - - 619,205 - Replace two RTUs - 86,905 - - 86,905 - - 86,905 - Culvert Repairs - 675,967 - - 675,967 - - 675,967 - Tower Repair for Jack Frost Heaves - 887,597 - - 887,597 - - 887,597 - Replace Plant and SCADA Controls - 1,344,683 - - 1,344,683 - - 1,344,683 - Vibration Monitoring System - 490 - - 490 - - 490 - Fire Alarm System Replacement 33,942 171,339 1,338,000 - 171,339 1,307,299 266,790 438,129 1,471,407 Battle Creek Diversion - 1,170,000 - - 1,170,000 - - 1,170,000 - Bradley Replace Electro-Mechanical Relays - 1,277,197 - - 1,277,197 - - 1,277,197 - Fishwater Screen Debris Removal - 312,236 - - 312,236 - - 312,236 - Turbine Nozzle Repair - 1,428,861 - - 1,428,861 - - 1,428,861 - SVC replacement Daves Creek | Soldotna - 8,517,991 - - 8,517,991 - - 8,517,991 - Equipment Storage Shed - 510,550 - - 510,550 - - 510,550 - Emerson Operating System Upgrade - 622,665 - - 622,665 - - 622,665 - Generator #2 Replacement - 953,213 - - 953,213 - - 953,213 - Road Grader - 342,330 - - 342,330 - - 342,330 - Battle Creek Construction - 3,739,591 - - 3,739,591 - - 3,739,591 - Battle Creek Cash Call-Expended - 750,000 - - 750,000 - - 750,000 - Battle Creek Cash Call-Paid by Utilities - (750,000) - - (750,000) - - (750,000) - Needle Repairs - 1,482,791 - - 1,482,791 - - 1,482,791 - Construct Additional Residence 805,515 1,000,284 910,000 75,156 1,075,440 - - 1,075,440 - Bradley Lake Expansion Project**176,092 1,384,822 252,000 774,357 2,159,179 839,270 73,437 2,232,616 - Needle Valve Rebuild 198,086 198,086 1,579,535 1,504,127 1,702,213 1,719,535 - 1,702,213 - Barge Dock Rehabilitation - - - 401 401 600,000 - 401 600,000 Critical Spare (2) Nozzle Assemblies - - - - - - - - 400,000 Change out turbine nozzles units #1 and #2 - - - - - - - - 1,021,000 Employee Quarters Water Damage Repairs - - - - - - 66,255 66,255 - 1,213,635 35,298,622 4,079,535 2,354,041 37,652,663 4,466,103 406,482 38,059,145 3,492,407 Current Year R&C Repayment (3,338,646) (2,580,808) (2,580,808) Adjust balance to $5 million - - - Interest in Fund Applied to Repayment (246,205) (157,748) (70,655) Net Transfer from Revenue Fund (3,584,851) (2,738,556) (2,651,463) Cumulative Prior Years R&C Repayments (31,677,137) (33,746,653) (35,082,970) Due to (from) Utilities 1,515,335 1,402,238 2,651,463 Adjust Due to R&C Actual - - - (30,161,802) (32,344,414) (32,431,508) NET DUE TO R&C FUND 1,551,969 2,569,693 2,976,175 R&C FUND CASH FLOW PROJECTION Beginning Investment Balance 4,370,333 6,177,000 6,186,586 Disbursements-current year -Accrual - - - Disbursements-prior year accrued (789,379) (1,213,635) (2,354,041) Utilities' R&C Refund (988,805) (1,515,335) (1,402,238) Net other cash inflow(outflow) - - - Current year interest earnings 246,205 157,748 70,655 Participants Contributions to R&C Fund 3,338,646 2,580,808 2,580,808 Ending Investment Balance 6,177,000 6,186,586 5,081,770 Accrued Due to (from) Utilities (1,515,335) (1,402,238) (2,651,463) R&C payable back to the revenue fund - - - Accrued R&C vendor Payable at Year End (1,213,635) (2,354,041) (406,482) PROJECTED NET DUE + ENDING INVESTMENT BALANCE 5,000,000 5,000,000 5,000,000 Bradley Lake Expansion Project Budget Committed Encumbered Actuals Variance Bradley Lake R&C Fund 2,300,000 - 57,384 2,232,616 10,000 REF Grant (CEA) 1,000,000 - 210,261 789,739 - REF Grant Match 1,000,000 - - - 1,000,000 State Hydro Development 5,000,000 20,000 98,290 4,881,710 - State Railbelt 1,379,700 - 626,644 753,056 - Bond Series 11 Interest 6,000,000 510,000 1,290,164 523,903 3,675,933 Bradley Lake Dixon Diversion 4,000,000 - 1,916,603 2,083,397 - Total Project Cost at 02/28/26 20,679,700 530,000 4,199,347 11,264,420 4,685,934 4th 1,321,709 3rd 247,054 4th 247,054 2nd 197,345 3rd 197,345 4th 197,345 1st 303,409 2nd 303,409 3rd 303,409 1st 588,510 2nd 588,510 1st 101,621 2,069,516 1,336,318 1,190,884 BRADLEY LAKE HYDROELECTRIC PROJECT R&C FUND DISBURSEMENTS AND REPAYMENTS SCHEDULE DFOR THE PERIOD 07/01/2025 T0 02/28/2026 ALASKA ENERGY AUTHORITY Page 6 of 12 FY24 FY24 FY25 FY25 FY26 FY26 BUDGET ACTUALS BUDGET ACTUALS BUDGET ACTUALS Battle Creek Associated Costs 15,000 - - - - - Survey and Monument DNR Lease 150,000 88,651 5,000 2,621 5,000 - Total Non R&C Capital Purchases 165,000 88,651 5,000 2,621 5,000 - BATTLE CREEK CAPITAL PURCHASES NOT FUNDED BY R&C FUND ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT BATTLE CREEK NON-R&C CAPITAL PURCHASES SCHEDULE E FOR THE PERIOD 07/01/2025 TO 02/28/2026 Page 7 of 12 BATTLE CREEK OPERATIONS & MAINTENANCE BUDGET TO ACTUAL EXPENSES SCHEDULE F FOR THE PERIOD 07/01/2025 TO 02/28/2026 FY 26 FY 25 FY26 Approved Budget BUDGET % 07/01/2025 - 02/28/2026 HEA Actual CEA Actual AEA Actual Total Actual (Over) Under Budget to Date FY25 Approved Budget FY25 Actual Summary by expense type Staff Professional Services (Direct) 50,000 33,333 - - 32,131 32,131 1,202 50,000 46,192 Labor & Benefits 10,000 6,667 28,545 744 4,998 34,287 (27,620) 10,000 59,807 Travel - - 20 - 124 144 (144) - 3,322 Training - - 605 - 51 655 (655) - 300 Contractual 333,477 222,318 25,350 - 191,048 216,398 5,920 201,300 243,987 Consulting-Administrative - - - - 834 834 (834) - 1,935 Supplies & Materials 5,000 3,333 4,016 28 - 4,044 (711) 5,000 12,346 Other Costs - - 1,157 805 - 1,962 (1,962) - 3,962 Equipment, Furniture & Machinery - - 657 - 24 681 (681) - 831 Administrative Costs 14,000 9,333 1,946 - 53,644 55,589 (46,256) 14,000 93,093 Indirect Costs - - 36,318 - - 36,318 (36,318) - 55,874 O&M 4% Allocation to Battle Creek 321,307 214,205 - - - - 214,205 320,638 - Total Battle Creek Budget 733,784 489,190 98,614 1,576 282,853 383,044 106,146 600,938 521,650 FERC 535 - Operation Supervision & Engineering Operations Sup/Eng Battle Creek Operating Labor & Benefits 1,500 1,000 2,985 - - 2,985 (1,985) 1,500 4,156 Travel - - 3 - - 3 (3) - 28 Contractual - - - - - - - - 17 Supplies & Materials 1,000 667 48 - - 48 619 1,000 - Indirect Costs - - 4,139 - - 4,139 (4,139) - 5,822 Battle Creek Operating Total 2,500 1,667 7,175 - - 7,175 (5,509) 2,500 10,023 FERC 535 - Operation Supervision & Engineering Total 2,500 1,667 7,175 - - 7,175 (5,509) 2,500 10,023 FERC 537 - Hydraulic Expenses Hydraulic Expenses Battle Creek Operating Labor & Benefits 1,500 1,000 2,274 - - 2,274 (1,274) 1,500 3,293 Contractual 277,177 184,785 - - 155,609 155,609 29,176 145,000 141,077 Supplies & Materials 1,000 667 55 - - 55 612 1,000 72 Indirect Costs - - 2,976 - - 2,976 (2,976) - 4,529 Battle Creek Operating Total 279,677 186,451 5,305 - 155,609 160,914 25,537 147,500 148,972 FERC 537 - Hydraulic Expenses Total 279,677 186,451 5,305 - 155,609 160,914 25,537 147,500 148,972 FERC 538 - Electric Expenses Electric Expenses Battle Creek Operating Labor & Benefits 1,500 1,000 6,453 - - 6,453 (5,453) 1,500 9,478 Travel - - 13 - - 13 (13) - 12 Training - - 605 - - 605 (605) - 166 Contractual - - 506 - - 506 (506) - 219 Supplies & Materials 1,000 667 62 - - 62 604 1,000 249 Indirect Costs - - 7,592 - - 7,592 (7,592) - 11,180 Battle Creek Operating Total 2,500 1,667 15,231 - - 15,231 (13,564) 2,500 21,304 FERC 538 - Electric Expenses Total 2,500 1,667 15,231 - - 15,231 (13,564) 2,500 21,304 FERC 539 - Misc. Hydraulic Power Generation Expenses Misc Hydro Power Exp Battle Creek Operating Labor & Benefits 1,500 1,000 1,963 - - 1,963 (963) 1,500 3,286 Contractual - - 15,719 - - 15,719 (15,719) - 17,109 Supplies & Materials 1,000 667 613 - - 613 53 1,000 1,909 Other Costs - - 1,157 805 - 1,962 (1,962) - 3,639 Equipment, Furniture & Machinery - - - - - - - - 107 Indirect Costs - - 2,753 - - 2,753 (2,753) - 4,630 Battle Creek Operating Total 2,500 1,667 22,206 805 - 23,011 (21,344) 2,500 30,681 FERC 539 - Misc. Hydraulic Power Generation Expenses Total 2,500 1,667 22,206 805 - 23,011 (21,344) 2,500 30,681 FERC 541 - Maintenance Supervision & Engineering Maint Supervision/Eng Battle Creek Operating Labor & Benefits 2,500 1,667 3,065 - - 3,065 (1,399) 2,500 4,342 Indirect Costs - - 4,139 - - 4,139 (4,139) - 5,822 Battle Creek Operating Total 2,500 1,667 7,204 - - 7,204 (5,538) 2,500 10,163 FERC 541 - Maintenance Supervision & Engineering Total 2,500 1,667 7,204 - - 7,204 (5,538) 2,500 10,163 FERC 542 - Maintenance of Structures Maintenance of Structures Battle Creek Operating Labor & Benefits 1,500 1,000 1,739 - - 1,739 (739) 1,500 2,830 Contractual - - 688 - - 688 (688) - 4,310 Supplies & Materials 1,000 667 713 - - 713 (47) 1,000 1,690 Equipment, Furniture & Machinery - - 657 - - 657 (657) - 609 Indirect Costs - - 2,429 - - 2,429 (2,429) - 3,942 Battle Creek Operating Total 2,500 1,667 6,226 - - 6,226 (4,560) 2,500 13,381 FERC 542 - Maintenance of Structures Total 2,500 1,667 6,226 - - 6,226 (4,560) 2,500 13,381 FERC 543 - Maintenance of Reservoirs, Dams & Waterways Maint Res, Dams, WWays Battle Creek Operating Labor & Benefits - - 80 - - 80 (80) - 544 Contractual - - 727 - - 727 (727) - 1,721 Supplies & Materials - - - - - - - - 2,639 Indirect Costs - - 124 - - 124 (124) - 667 Battle Creek Operating Total - - 931 - - 931 (931) - 5,571 FERC 543 - Maintenance of Reservoirs, Dams & Waterways Total - - 931 - - 931 (931) - 5,571 FERC 544 - Maintenance of Electric Plant Maintenance of Elec Plant Battle Creek Operating Labor & Benefits - - 6,930 - - 6,930 (6,930) - 10,895 Travel - - 4 - - 4 (4) - 22 ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Page 8 of 12 BATTLE CREEK OPERATIONS & MAINTENANCE BUDGET TO ACTUAL EXPENSES SCHEDULE F FOR THE PERIOD 07/01/2025 TO 02/28/2026 FY 26 FY 25 FY26 Approved Budget BUDGET % 07/01/2025 - 02/28/2026 HEA Actual CEA Actual AEA Actual Total Actual (Over) Under Budget to Date FY25 Approved Budget FY25 Actual ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Contractual - - 1,577 - - 1,577 (1,577) - 2,511 Supplies & Materials - - 367 - - 367 (367) - 1,470 Indirect Costs - - 9,681 - - 9,681 (9,681) - 15,319 Battle Creek Operating Total - - 18,560 - - 18,560 (18,560) - 30,217 FERC 544 - Maintenance of Electric Plant Total - - 18,560 - - 18,560 (18,560) - 30,217 FERC 545 - Maintenance of Misc. Hydraulic Plant Maint of Misc Hydr Plant Battle Creek Operating Labor & Benefits - - 1,782 - - 1,782 (1,782) - 2,837 Contractual - - 1,927 - - 1,927 (1,927) - 1,601 Supplies & Materials - - 1,897 - - 1,897 (1,897) - 2,350 Indirect Costs - - 2,484 - - 2,484 (2,484) - 3,965 Battle Creek Operating Total - - 8,091 - - 8,091 (8,091) - 10,752 FERC 545 - Maintenance of Misc. Hydraulic Plant Total - - 8,091 - - 8,091 (8,091) - 10,752 FERC 556 - System Control & Load Dispatching Bradley Lake Operating Total - - - - - - - - - Battle Creek Operating Labor & Benefits - - 921 - - 921 (921) - 1,082 Contractual - - 1,684 - - 1,684 (1,684) - 2,049 Supplies & Materials - - - - - - - - 36 Battle Creek Operating Total - - 2,605 - - 2,605 (2,605) - 3,167 Snow Measurement Battle Creek Operating Contractual - - - - - - - - 400 Battle Creek Operating Total - - - - - - - - 400 Seismic Service Battle Creek Operating Contractual - - - - 1,385 1,385 (1,385) - 2,595 Battle Creek Operating Total - - - - 1,385 1,385 (1,385) - 2,595 Streamguaging Serv Battle Creek Operating Contractual 56,300 37,533 - - 34,054 34,054 3,480 56,300 67,541 Battle Creek Operating Total 56,300 37,533 - - 34,054 34,054 3,480 56,300 67,541 Permits Battle Creek Operating Other Costs - - - - - - - - 10 Battle Creek Operating Total - - - - - - - - 10 FERC 556 - System Control & Load Dispatching Total 56,300 37,533 2,605 - 35,439 38,044 (510) 56,300 73,713 FERC 562 - Station Expenses Station Expenses Battle Creek OperatingLabor & Benefits - - 350 744 - 1,094 (1,094) - 5,649 Travel - - - - - - - - 32 Contractual - - 2,522 - - 2,522 (2,522) - 1,368 Supplies & Materials - - 260 28 - 289 (289) - 1,064 Other Costs - - - - - - - - 64 Battle Creek Operating Total - - 3,133 772 - 3,905 (3,905) - 8,178 FERC 562 - Station Expenses Total - - 3,133 772 - 3,905 (3,905) - 8,178 FERC 571 - Maintenance of Overhead Lines Maint of OH Lines Battle Creek Operating Labor & Benefits - - - - - - - - 979 Contractual - - - - - - - - 1,468 Supplies & Materials - - - - - - - - 499 Battle Creek Operating Total - - - - - - - - 2,945 FERC 571 - Maintenance of Overhead Lines Total - - - - - - - - 2,945 FERC 920 & 930 - Administrative Expense AEA Bradley Fixed Admin Fees Battle Creek Operating Staff Professional Services (Direct) 50,000 33,333 - - 32,131 32,131 1,202 50,000 46,192 Travel - - - - 124 124 (124) - 3,142 Training - - - - 51 51 (51) - 134 Consulting-Administrative - - - - 58 58 (58) - 90 Supplies & Materials - - - - - - - - 370 Other Costs - - - - - - - - 249 Equipment, Furniture & Machinery - - - - 24 24 (24) - 115 Administrative Costs - - - - 4,906 4,906 (4,906) - 18,977 Battle Creek Operating Total 50,000 33,333 - - 37,294 37,294 (3,961) 50,000 69,268 Operating Committee Exp-Audit Battle Creek Operating Administrative Costs - - - - 1,766 1,766 (1,766) - 1,606 Battle Creek Operating Total - - - - 1,766 1,766 (1,766) - 1,606 Operating Committee Exp-Legal Battle Creek Operating Administrative Costs 5,000 3,333 - - 3,463 3,463 (130) 5,000 5,247 Battle Creek Operating Total 5,000 3,333 - - 3,463 3,463 (130) 5,000 5,247 Operat Committee Exp-Arbitrage Battle Creek Operating Administrative Costs 2,500 1,667 - - - - 1,667 2,500 1,690 Battle Creek Operating Total 2,500 1,667 - - - - 1,667 2,500 1,690 Trust & Account Fees Battle Creek Operating Administrative Costs 5,500 3,667 - - 4,200 4,200 (533) 5,500 4,400 Battle Creek Operating Total 5,500 3,667 - - 4,200 4,200 (533) 5,500 4,400 Misc Admin Battle Creek Operating Page 9 of 12 BATTLE CREEK OPERATIONS & MAINTENANCE BUDGET TO ACTUAL EXPENSES SCHEDULE F FOR THE PERIOD 07/01/2025 TO 02/28/2026 FY 26 FY 25 FY26 Approved Budget BUDGET % 07/01/2025 - 02/28/2026 HEA Actual CEA Actual AEA Actual Total Actual (Over) Under Budget to Date FY25 Approved Budget FY25 Actual ALASKA ENERGY AUTHORITY BRADLEY LAKE HYDROELECTRIC PROJECT Administrative Costs 1,000 667 - - 629 629 37 1,000 610 Battle Creek Operating Total 1,000 667 - - 629 629 37 1,000 610 Professional Consultants Battle Creek Operating Labor & Benefits - - - - 4,998 4,998 (4,998) - 10,435 Travel - - - - - - - - 86 Battle Creek Operating Total - - - - 4,998 4,998 (4,998) - 10,521 FERC 920 & 930 - Administrative Expense Total 64,000 42,667 - - 52,351 52,351 (9,684) 64,000 93,341 FERC 924 & 925 - Insurance Premiums Insurance Premiums Battle Creek Operating Administrative Costs - - 1,946 - 38,394 40,340 (40,340) - 48,500 Battle Creek Operating Total - - 1,946 - 38,394 40,340 (40,340) - 48,500 FERC 924 & 925 - Insurance Premiums Total - - 1,946 - 38,394 40,340 (40,340) - 48,500 FERC 923 - Outside Services Employed Outside Services Employed Battle Creek Operating Consulting-Administrative - - - - 776 776 (776) - 1,845 Battle Creek Operating Total - - - - 776 776 (776) - 1,845 FERC 923 - Outside Services Employed Total - - - - 776 776 (776) - 1,845 FERC 928 - Regulatory Commission Expenses FERC Admin Fees Battle Creek OperatingAdministrative Costs - - - - - - - - 8,893 Battle Creek Operating Total - - - - - - - - 8,893 FERC Related Prof Services Battle Creek Operating Administrative Costs - - - - 284 284 (284) - 3,171 Battle Creek Operating Total - - - - 284 284 (284) - 3,171 FERC 928 - Regulatory Commission Expenses Total - - - - 284 284 (284) - 12,064 O&M Allocation to Battle Creek 321,307 214,205 - - - - 214,205 320,638 - Total Battle Creek Budget 733,784 489,190 98,614 1,576 282,853 383,044 106,146 600,938 521,650 - - - - - - - - - Page 10 of 12 FY 26 FY 25 FY26 Approved Budget BUDGET % 07/01/2025 - 02/28/2026 HEA Actual CEA Actual AEA Actual Total Actual (Over) Under Budget to Date FY25 Approved Budget FY25 Actual Summary by expense type Staff Professional Services (Direct)10,000 6,667 - - 3,356 3,356 3,311 40,000 7,086 Labor & Benefits 50,000 33,333 - - - - 33,333 50,000 47,722 Travel - - - - - - - - 63 Contractual 150,000 100,000 4,269 - - 4,269 95,731 150,000 58,795 Permitting 36,878 24,586 - - 4,282 4,282 20,304 36,878 72,223 Supplies & Materials 20,000 13,333 - - - - 13,333 20,000 52 Administrative Costs 7,000 4,667 - - 2,754 2,754 1,912 47,000 5,059 Total SSQ Line Budget 273,878 182,586 4,269 - 10,392 14,661 167,925 343,878 190,998 FERC 556 - System Control & Load Dispatching Permits SSQ Line Operating Permitting 36,878 24,586 - - 4,282 4,282 20,304 36,878 72,223 SSQ Line Operating Total 36,878 24,586 - - 4,282 4,282 20,304 36,878 72,223 FERC 556 - System Control & Load Dispatching Total 36,878 24,586 - - 4,282 4,282 20,304 36,878 72,223 FERC 570 - Maintenance of Station Equipment SSQ Line Operating Total - - - - - - - - - FERC 570 - Maintenance of Station Equipment Total - - - - - - - - - FERC 571 - Maintenance of Overhead Lines Maint of OH Lines SSQ Line Operating Labor & Benefits 50,000 33,333 - - - - 33,333 50,000 47,722 Contractual 150,000 100,000 4,269 - - 4,269 95,731 150,000 58,795 Supplies & Materials 20,000 13,333 - - - - 13,333 20,000 - SSQ Line Operating Total 220,000 146,667 4,269 - - 4,269 142,398 220,000 106,517 FERC 571 - Maintenance of Overhead Lines Total 220,000 146,667 4,269 - - 4,269 142,398 220,000 106,517 FERC 920 & 930 - Administrative Expense AEA Bradley Fixed Admin Fees SSQ Line Operating Staff Professional Services (Direct)10,000 6,667 - - 3,356 3,356 3,311 40,000 7,086 Travel - - - - - - - - 63 Supplies & Materials - - - - - - - - 52 Administrative Costs - - - - 754 754 (754) 20,000 3,059 SSQ Line Operating Total 10,000 6,667 - - 4,110 4,110 2,556 60,000 10,259 Trust & Account Fees SSQ Line Operating Administrative Costs 2,000 1,333 - - 2,000 2,000 (667) 2,000 2,000 SSQ Line Operating Total 2,000 1,333 - - 2,000 2,000 (667) 2,000 2,000 FERC 920 & 930 - Administrative Expense Total 12,000 8,000 - - 6,110 6,110 1,890 62,000 12,259 FERC 928 - Regulatory Commission Expenses FERC Related Prof Services BRADLEY CONTRACTUAL ENGINEER-FERC LICENSE ISSUES Administrative Costs 5,000 3,333 - - - - 3,333 25,000 - BRADLEY CONTRACTUAL ENGINEER-FERC LICENSE ISSUES Total 5,000 3,333 - - - - 3,333 25,000 - FERC 928 - Regulatory Commission Expenses Total 5,000 3,333 - - - - 3,333 25,000 - Total SSQ Line Budget 273,878 182,586 4,269 - 10,392 14,661 167,925 343,878 190,998 - - - - - - - - - ALASKA ENERGY AUTHORITY SSQ LINE OPERATIONS & MAINTENANCE SCHEDULE I BUDGET TO ACTUAL EXPENSES FOR THE PERIOD 07/01/2025 TO 02/28/2026 BRADLEY LAKE HYDROELECTRIC PROJECT Page 11 of 12 Source Construction Funds at 11/30/22 Investment Expenses Calculated Capital Reserve at 11/30/22 Released from Capital Reserve Earned Interest Income Total Available Funding Required Project Work Bond Series 11 Funding 166,013,134 (157,250) (12,454,346) 1,590,422 21,465,624 176,457,584 BESS Required Project Work Bond Series 11 Funded Capital Projects Total Funding Project Budget Committed Encumbered Total Actual Costs (Over) / Under Project Budget (Over) / Under Total Funding BRADLEY HEA BESS Preliminary Study 75,000 - 22,473 958 51,569 Oscillation Dampening Service - CEA 16,072,398 - - 1,477,622 14,594,776 Oscillation Dampening Service - MEA 3,870,839 - - 355,867 3,514,972 Oscillation Dampening Service - AEEC 3,365,947 - - 272,046 3,093,901 Total BESS Capital Projects 23,690,538 23,384,183 - 22,473 2,106,493 21,255,217 21,561,572 Transmission Required Project Work Bond Series 11 Funded Capital Projects Total Funding Project Budget Committed Encumbered Total Actual Costs (Over) / Under Project Budget (Over) / Under Total Funding SSQ Line Sterling-Qtz Ck 230kV Construction 88,085,000 10,000 5,107 14,493,440 73,576,453 Soldotna-Sterling 230kV Construction 36,135,000 - - 1,004,239 35,130,761 Bradley Lake Expansion Project 6,000,000 510,000 1,290,164 523,903 3,675,933 BRADLEY Required Project Work Support - - - 177,412 (177,412) Bradley RPW - Bond Series 11 - - - 61,198 (61,198) Total Transmission Capital Projects 85,711,000 130,220,000 520,000 1,295,270 16,260,192 112,144,538 67,635,538 GRIP 3 Round 1 Required Project Work Bond Series 11 Funded Projects - HVDC Line Total Funding Project Budget Committed Encumbered Total Actual Costs (Over) / Under Project Budget (Over) / Under Total Funding Allocate from BESS AEA Resolution 24-12 30,000,000 - - - 30,000,000 Allocate from Transmission AEA Resolution 24-02 20,000,000 - - - 20,000,000 Total Grip 3 Round 1 Capital Projects 50,000,000 50,000,000 - - - 50,000,000 50,000,000 Unassigned Earned Interest Income 17,056,046 - - - - - 17,056,046 Total Required Project Work 176,457,584 203,604,183 520,000 1,317,744 18,366,685 183,399,755 156,253,156 02/28/26 APPENDIX ACAPITAL PROJECTS FUNDED BY SERIES 11 BOND PROCEEDS BRADLEY LAKE HYDROELECTRIC PROJECT ALASKA ENERGY AUTHORITY 50,000,000 50,000,000 67,635,538 85,711,000 23,690,538 21,561,572 Page 12 of 12 Bradley Operation and Dispatch Committee Report May 15th, 2026 Meeting Dates: April 17, 2026 Notable Discussions and Items: □ River Forecast Center presentation and preliminary projection at about 95% of normal in flows from snow and glacial melt. Water Tracking & Lake Level: □ As of May 1st, 2026, Bradley Lake contained approximately 23,950 MWh of energy. Committee Assignments: □ CEA continues work to address SCADA challenges to allow HEA wheeling capacity as defined in the existing Bradley agreement. □ BPMC approved - CEA & HEA investigating appropriate relay settings - $15k spend limit. • HEA and CEA are working on the development of work scope for best practice analysis. Next Meeting: May 22nd, 2026 @ 10am