1996 EKLUTNA HYDROELECTRIC PROJECT
TRANSITION PLAN
by and among
THE UNITED STATES OF AMERICA d/b/a ALASKA POWER
ADMINISTRATION, a unit of the DEPARTMENT OF ENERGY; THE
MUNICIPALITY OF ANCHORAGE d/b/a MUNICIPAL LIGHT
& POWER; CHUGACH ELECTRIC ASSOCIATION,
INC.; and MATANUSKA ELECTRIC ASSOCIATION,
INC.
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1996 EKLUTNA HYDROELECTRIC PROJECT
TRANSITION PLAN
by and among
THE UNITED STATES OF AMERICA d/b/a ALASKA POWER
ADMINISTRATION, a unit of the DEPARTMENT OF ENERGY; THE
MUNICIPALITY OF ANCHORAGE d/b/a MUNICIPAL LIGHT
& POWER; CHUGACH ELECTRIC ASSOCIATION,
INC.; and MATANUSKA ELECTRIC ASSOCIATION,
INC.
This plan comprises:
o Transition Plan, consisting of 13 Sections contained on 10 pages;
o Exhibit A, consisting of 33 pages;
o Exhibit B, consisting of 5 pages;
o Exhibit C, consisting of 12 pages;
o Exhibit D, consisting of 25 pages;
o Exhibit E, consisting of 9 pages; and
THIS PLAN ("PLAN") dated as of May 28, 1996, is adopted by and among, namely,
The United States of America d/b/a Alaska Power Administration (APA) a unit of
the Department of Energy (DOE); The Municipality of Anchorage (ML&P); the
Chugach Electric Association, Inc.(CEA); and the Matanuska Electric Association,
Inc. (MEA). Unless specifically referred to herein, the above are hereinafter
designated the "Parties."
RECITALS:
WHEREAS, by the Alaska Power Administration Asset Sale and Termination Act, APA
is authorized to sell to the undersigned Utilities (hereinafter the "Eklutna
Purchasers"), physical assets, property interests, and all other interests the
DOE may have in the Eklutna Hydroelectric Generation Plant, tunnels,
transmission lines, rights-of-way, equipment, rolling stock, and other rights in
contract (hereinafter the "Eklutna Project") as set forth in the Eklutna
Purchase Agreement, dated August 2, 1989, attached hereto and incorporated below
by reference as Exhibit A (hereinafter referred to as the Purchase Agreement)
together with all amendments thereto; and
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WHEREAS, the Eklutna Purchasers are required prior to May 28, 1996, pursuant to
the Purchase Agreement to jointly develop and adopt specific transition plans
setting forth the arrangements and a timetable for completing the sale and
transfer; and WHEREAS, the Eklutna Purchasers have signed a Memorandum of
Understanding dated July 25, 1989, attached hereto as Exhibit B, in which they
mutually declare their respective proportionate shares of the Eklutna Project's
capacity, energy, and undivided interest in Eklutna assets to be 16/30 to ML&P
(53.33%); 9/30 to CEA (30%); and 5/30 to MEA (16.67%), and further declare that
the Eklutna Project operating costs will be borne in these same proportions; and
WHEREAS, the Eklutna Purchasers, subject to the rights of the Parties to amend
the terms of the Purchase Agreement subsequent to adoption of this Plan, desire
to formalize transition plans and arrangements by the terms of this Plan; and
WHEREAS, the Parties intend that this Plan shall foster an efficient, orderly,
and expeditious transfer of the Eklutna Project and its operation to the Eklutna
Purchasers, and further intend that the transfer be accomplished with minimum
costs and minimum adverse impacts to APA employees. NOW THEREFORE, IN
CONSIDERATION of the mutual covenants set forth herein, the Parties agree as
follows:
SECTION 1. PARTIES
Parties to This Plan: The Parties to this Plan are the United States of America
d/b/a Alaska Power Administration (APA) a unit of the Department of Energy
(DOE), and the Eklutna Purchasers: The Municipality of Anchorage d/b/a Municipal
Light & Power (ML&P), purchaser of 16/30ths of the Eklutna Project (53.33%); the
Chugach Electric Association, Inc. (CEA), purchaser of 9/30ths of the Eklutna
Project (30%); and the Matanuska Electric Association (MEA), purchaser of
5/30ths of the Eklutna Project (16.67%). The Eklutna Purchasers shall, after the
Transaction Date, own an undivided interest in the Eklutna Project assets
identified in Section 4 of the Purchase Agreement that are the subject of this
Plan, and will exercise the rights and bear the responsibilities of such
ownership in proportion to their respective shares.
SECTION 2. TERM OF PLAN
(a) Effective Date. This Plan shall become effective upon execution by all of
the Parties ("Effective Date").
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(b) Expiration Date. Unless earlier terminated pursuant to other provisions of
this Plan, this Plan shall expire upon completion of the tasks herein defined or
as otherwise mutually agreed upon by all of the Parties.
SECTION 3. SELECTION OF A TRANSACTION DATE
The date upon which ownership of the Eklutna Project transfers to the Eklutna
Purchasers is the "Transaction Date" and shall be within 30 days of the
completion of all items listed in Exhibit C and section 10 of this Plan to the
satisfaction of all Parties or as late as November 28, 1997, or later if
mutually agreed upon.
SECTION 4. SCHEDULE FOR PAYMENTS TO THE UNITED STATES
TREASURY
(a) Section 5(a) of the Purchase Agreement specifies the selling price of the
Eklutna Project as the discounted present value of the remaining payment stream
(as described in the 1987 repayment study) plus $1,000,000.00. The present value
using the 9% discount rate will be determined by APA using the methodology of
Section 5 of the Purchase Agreement and the remaining payments described in
Exhibit B of Amendment No. 3 to the Purchase Agreement dated June 22, 1995. The
price estimated in the Purchase Agreement assumes adjustments for a Transaction
Date that is other than the beginning of a federal fiscal year. If the
established Transaction Date is a date other than the start of the federal
fiscal year, the selling price will be established and payments scheduled in
accordance with the Purchase Agreement. The payment to the U.S. Treasury will be
fully paid within five years of the Transaction Date. The portion paid to the
U.S. Treasury following the Transaction Date will carry interest of 9% per
annum. (b) The Eklutna Purchasers intend to make payments to the U.S. Treasury
or deposits in an escrow account with certified funds (by check or wire
transfer) on the Transaction Date. If any Eklutna Purchaser should otherwise
choose to make payments within the allowable five year window, such election
must be announced prior to the Transaction Date. A schedule will then be
developed and any and all interest charges associated with the established
schedule will be borne by the Eklutna Purchaser (or Purchasers) that so elect to
make payments. An interest bearing escrow account may be established in which
the Eklutna Purchasers may deposit payment amounts. Funds will be held in this
escrow account to cover completion of outstanding land, property, or other
issues identified on the Transaction Date. Funds will be
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released to the U.S. Treasury as mutually agreed to by the Parties. Interest on
funds held in this escrow account shall be credited toward the 9% per annum
interest to be paid by the Eklutna Purchasers to the U.S. Treasury on the
portion paid following the Transaction Date, from the Transaction Date until the
date the payments are actually made to the U.S. Treasury.
SECTION 5. ARRANGEMENTS AND TIMETABLE FOR TRANSFER OF
OPERATIONS, MAINTENANCE , POWER MARKETING, AND
ADMINISTRATION OF THE EKLUTNA PROJECT
EVENT TIMETABLE
APA and the Eklutna Purchasers set mutually agreeable functional ............... Complete
transfer date of October 1, 1996 ("Transition Date")
Eklutna Purchasers provide APA with proposed organization and
staffing requirements related to employees currently at the Eklutna ............ May 28, 1996
- -------------------------------------------------------------------------------- ------------
Project ........................................................................
Eklutna Purchasers representatives meet with the Eklutna Project Jun 10, 1996
personnel to discuss detailed transition staffing plans ........................
Eklutna Operating Committee (EOC), as established in this Plan, ................ Jun 28, 1996
- -------------------------------------------------------------------------------- ------------
begins to meet, develops coordination procedures for functional
control in consultation with APA, and conduct other business ...................
Parties determine the budgetary offsets to current Eklutna Project
rates and propose new power rates for the transition period ................... Jul 1, 1996
- -------------------------------------------------------------------------------- ------------
APA initiates personnel actions necessary to facilitate the
functional transfer to the utilities ........................................... Aug 15, 1996
- -------------------------------------------------------------------------------- ------------
Detailed plans, agreements, and SOP's in place and executed for ................ Aug 30, 1996
- -------------------------------------------------------------------------------- ------------
October 1, 1996 change in functional control ...................................
------------
Eklutna personnel transition to their respective utility employer ............. Oct 1, 1996
- -------------------------------------------------------------------------------- ------------
EOC manages the operation and adjusts procedures as required in ............... Commences
consultation with APA .......................................................... Oct 1, 1996
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Office space and full access to all government records for an APA Commences real
estate person and rewind contracting officer's representative Oct 1, 1996 will
be provided by Eklutna Purchasers.
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SECTION 6. ACTIVITIES AND SCHEDULES FOR COMPLETION OF SALE
EVENT TIMETABLE
Formal environmental, engineering, and safety inspections
continue until complete ............................................ Aug 1, 1996
Parties agree on resolution of inspection issues ................... Aug 30, 1996
Generator rewind, plant modifications, and inspection corrective
actions continue until completed ................................... As Required
Title and land conveyance issues continue until complete ........... Transaction Date
Conveyance documents in final draft ................................ Aug 30, 1996
Transaction Date and the Eklutna Project sale executed ............. Nov 28, 1997
(unless earlier
agreed upon)
SECTION 7. TRANSFER OF DATA AND OTHER RECORDS TO
PURCHASERS
EVENT TIMETABLE
APA Listing of Eklutna Project data and records to be transferred
which will include their current location ....................... May 24, 1996
Site selection by Eklutna Purchasers for data and document ...... Aug 1, 1996
relocation plan .................................................
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Data and documents transferred to Eklutna Purchasers after the To Be
Transaction Date as mutually agreed to by Parties. Determined
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SECTION 8. INSPECTION RESULTS AND REQUIRED DOE WORK PLAN
Inspection results and a required DOE work plan are attached hereto as Exhibit
C. The Parties agree that this list may not be all inclusive, and other work
items may be added by any Eklutna Purchaser if, in their judgment, new
information warrants. The Parties will mutually agree who has the responsibility
to correct the added work items and set the schedule for their completion. All
formal inspection results and action plans to deal with outstanding issues shall
be finalized by August 1, 1996. Description of inspection lists in this Exhibit
C:
(a) Listing of engineering inspection results as known when this Plan is
executed, the timetable of work to be completed by APA, and the resolution
of other inspection issues. (b) Listing of environmental and safety
inspection results and the APA responses are in draft form as of the
Effective Date of this Plan, and shall be included in this Exhibit C upon
receipt of same.
SECTION 9. EKLUTNA ASSETS
Attached as Exhibit D are the Physical assets list of APA and asset lists of
each of the utilities for those assets located on APA property. APA intends to
transfer, on the Transaction Date, full title to all such assets to Eklutna
Purchasers. If the Eklutna Purchasers should choose to operate and/or maintain
the Eklutna Project prior to the Transaction Date, they shall be authorized to
use listed APA equipment, tools, and vehicles. All assets listed by each utility
as their own are not intended to be, and shall not be, transferred to the other
Eklutna Purchasers, but shall remain available for the benefit of the Eklutna
Project. APA is in the process of finalizing its survey results on all
rights-of-way, easements, and structures intended to be transferred. All
parcels, rights-of-way, and easements shall be fully described upon completion
and compiled for inclusion in the transfer documents executed on the Transaction
Date. Any discrepancies shall be dealt with pursuant to Section 10 below.
SECTION 10. TITLE CONDITION TO ALL EKLUTNA ASSETS AND
PLANNED REMEDIES
All personal property transferred to Eklutna Purchasers by APA shall be free and
clear of any rights of third parties on the Transaction Date. Pursuant to the
Purchase Agreement, APA represents to the Eklutna Purchasers that it, or its
designated successor or assigns, shall provide without cost to the Eklutna
Purchasers real property interests described as follows:
(a) Titles to APA fee owned property, including Reed and Palmer substations
free and clear of encumbrances or conditions of title which would restrict
the Eklutna Purchasers' rights to continue to operate the Eklutna Project,
including the transmission lines and facilities located within described
rights-of-way, easements, or permitted areas;
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(b) The generation facility free of any encumbrances, covenants, and/or
restrictions which would arise from its designation as historically
significant and would prevent the Eklutna Purchasers from use, maintenance,
repair, remodel, modification or upgrade of the buildings or equipment of
the Eklutna Project assets; (c) Fee title to the Anchorage Substation
property and other Eklutna Project land rights free and clear of claims of
Cook Inlet Region Inc.; (d) Access rights-of-way or easements allowing
access for line maintenance of the transmission lines presently being used
as disclosed by the 1996 survey; (e) Easement rights to cross military
reserve and fee owned properties owned or controlled by the United States
Army within Ft. Richardson, Alaska on the existing transmission line
right-of-way; (f) Easements, rights-of-way, or permits as required to
provide for 115 KV transmission line facilities located in the CEA double
circuit portion of the transmission line as set forth in contract No.
85-80AP10022.000; (g) Easement rights for the existing transmission lines
across private property, including those areas of easements presently
authorized under 44LD513 and section 17(b) of ANCSA, free and clear of
claims of Eklutna Inc. or other underlying landowners and free of
encroachments disclosed by the APA 1996 survey; (h) Transfer of all other
agreements and rights and obligations with parties who are not purchasers
under this agreement; and (i) Easement and access rights for the Wasilla
Radio Relay facility free and clear of third party claims. (j)
Rights-of-way across property owned by the United States and managed by the
Bureau of Land Management. (k) Questions as to any limitations that there
may be on the use of or interference with all natural inflows to and waters
of the Eklutna Reservoir will be resolved.
In the event any of these rights can not be transferred to the Eklutna
Purchasers, or must be acquired by APA to be transferred to the Eklutna
Purchasers, APA and its successor or assigns warrant that they will proceed to
acquire such rights through the legal acquisition process, even if such process
is not completed by the Transaction Date. APA and its successor or assigns
warrant that they have the staff and resources necessary to acquire the
interests outlined above and will use such staff and other resources to complete
the acquisition in a timely manner. Resolution of any real property issues will
be identified in the transaction documents.
SECTION 11. EKLUTNA PURCHASERS MANNER OF ACTING,
FUNCTIONAL RESPONSIBILITY, AND STAFFING
Attached hereto as Exhibit E is the Eklutna Purchasers' plan for delineation of
responsibilities and activities to effect the transition of the currently
employed APA personnel at Eklutna and Eklutna Project operations.
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SECTION 12. NO THIRD-PARTY BENEFICIARIES
The provisions of this Plan shall not create any rights in favor of any person,
corporation, or association not a Party to this Plan, and the obligations herein
assumed are solely for the use and benefit of the Parties to this Plan and their
successors and assigns.
SECTION 13. MODIFICATIONS TO THIS PLAN
The provisions of this Plan have been negotiated by the Parties and represent
their best effort to follow the intent of the APA Asset Sale and Termination Act
pursuant to the Purchase Agreement. Should modifications to this Plan become
necessary, the Parties agree to continue their best effort to work toward
changes that are mutually agreeable to the Parties, and in timely enough fashion
that this agreement and any such modifications are adopted by the Parties on or
before the Transaction Date.
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Alaska Power Administration, a unit of the
U.S. Department Of Energy
/s/ Nicki J. French
Nicki J. French
Assistant Administrator
Municipality of Anchorage
/s/ Larry A. Crawford
Larry A. Crawford
Municipal Manager
Chugach Electric Association, Inc.
/s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager
Matanuska Electric Association, Inc.
/s/ Wayne D. Carmony
Wayne D. Carmony
General Manager
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RECOMMENDED: APPROVED AS TO FORM:
Anchorage Municipal Light & Power MUNICIPALITY OF ANCHORAGE
/s/ Thomas R. Stahr /s/ Mary K. Hughes
- ------------------- ---------------------------------
Thomas R. Stahr Mary K. Hughes
General Manager Municipal Attorney
RECOMMENDED:
MUNICIPALITY OF ANCHORAGE
/s/ G Vakalis
- ----------------------------------------------------
George J. Vakalis
Operations Manager
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EXHIBIT A
Eklutna Purchase Agreement
August 2, 1989
Chugach Electric Association, Inc.
Matanuska Electric Association, Inc.
Municipality of Anchorage
d/b/a Municipal Light & Power
Alaska Power Administration
United States Department of Energy
Eklutna Purchase Agreement
Table of Contents
Page
1. Parties to the Agreement.....................................1
2. Purpose......................................................1
3. Definitions..................................................1
4. Assets to be Sold or Transferred.............................2
5. Price and Payment Terms......................................4
6. Responsibilities.............................................5
7. Operation and Maintenance Expenses, Revenues.................6
8. Non-Power Users..............................................6
9. Transition Plans and Activities..............................7
10. Interim Activities...........................................8
11. Post-sale Operations, Maintenance and
Power Marketing Arrangements............................11
12. Effective Date..............................................12
13. Environmental Management....................................12
14. Term........................................................12
15. Dispute Resolution..........................................13
16. Notice......................................................13
17. Amendment...................................................13
18. Approvals...................................................13
19. Assignment..................................................14
20. Force Majeure...............................................14
21. Continuing Support and Assistance...........................14
22. Relationship of Purchasers..................................14
23. Agreement for Benefit of Parties Only.......................15
24. Miscellaneous Provisions....................................15
Table of Contents
Appended Material:
Exhibit A: Lands, Easements and Rights-of-Ways, Including Map
Marked Exhibit A, Dated February 3, 1989
Exhibit B: Future Principal & Interest Payments
Projected Selling Price
August 2, 1989
EKLUTNA PURCHASE AGREEMENT
1. Parties to the Agreement.
The parties to this Agreement are the Alaska Power Administration
(APAD), a unit of the United States Department of Energy, and the Municipality
of Anchorage d/b/a Municipal Light and Power (ML&P), the Chugach Electric
Association, Inc, (Chugach) and Matanuska Electric Association, Inc. (MEA)
(Purchasers) .
2. Purpose.
This Agreement sets out arrangements, terms and conditions for sale of
the Eklutna Hydroelectric Project (Eklutna) to Purchasers, such arrangements,
terms and conditions to be implemented if the United States Congress authorizes
such sale.
3. Definitions, As used in this Agreement:
"ADNR" means the Alaska Department of Natural
Resources.
"ANCSA" means the Alaska Native Claims Settlement Act
(PL-92-203).
"APAD" means the Alaska Power Administration, a unit of the United
States Department of Energy (including any successor entity).
"Chugach" means the Chugach Electric Association, Inc.
"BLM's means the United States Bureau of Land
Management.
"Eklutna" means the Eklutna Hydroelectric Project authorized,
constructed and operated pursuant to the Eklutna Project Act of July 31, 1950
(64 Stat, 382, as amended), including any and all property and facilities
acquired or used in connection with Eklutna.
"MEA" means the Matanuska Electric Association, Inc.
"ML&P" means the Municipality of Anchorage, d\b\a
Municipal Light and Power.
"Purchasers" means ML&P, Chugach, and MEA.
Eklutna Purchase Agreement August 2. 1989
Page 2
"Actions" means actions, inaction, and omissions.
"Transaction Date" means the date on which ownership of
Eklutna is to be transferred to the Purchasers as set forth in
Sections 4 and 9,
4. Assets to be Sold and Transferred.
a. The Eklutna assets to be sold and transferred consist of the power
production, transmission, associated real property and all other facilities and
assets provided or otherwise acquired for Eklutna under the Eklutna Project Act
of July 31, 1950 (64 Stat. 382, as amended) including but not limited to:
(1) Eklutna Dam; power intake structure; power tunnel and penstock; the
Eklutna powerplant containing two complete turbine-generator sets with ratings
of 15,000 kilowatts, each; auxiliary electrical and mechanical systems; a
tailrace and tailrace embankment; switchyard, transformers, 115 kilovolt
transmission lines connecting the powerplant with Palmer and Anchorage;
Anchorage, Palmer and Reed Substations; access roads; maintenance facilities and
vehicles; supervisory control and communications systems; various buildings
including office, warehouse,, and garage; personal property, including spare
parts and equipment; and any improvements,, replacements and renewals of such
major items;
(2) Title in acquired land at Palmer Substation, and easements or
rights-of-way for Eklutna facilities on privately owned land as described in
Exhibit A; and fee title to lands at Anchorage Substation if the Department of
Interior determines that the lands are available under law for conveyance to the
Purchasers;
(3) Granted rights-of-way for existing Eklutna facilities located on
BLM managed lands and military lands as described in Exhibit A;
(4) Studies, records, drawings, operating data,,
technical information; water rights including the reservoir
rights; licenses and any other permits; accurate location maps of Eklutna
facilities tied to public land surveys; acceptable land descriptions of the
areas of the easements, permits and licenses showing the location of the Eklutna
facilities within the described areas; other tangible rights as required for
operations and maintenance of Eklutna facilities; and warranties or other
intangible rights associated with the assets to be transferred and sold,
Eklutna Purchase Agreement August 2, 1989
Page 3
b. Granted rights-of-way for existing Eklutna facilities located on BLM
managed lands including lands selected by the State of Alaska and military lands
shall:
(1) Be sufficient for operation, maintenance, repairs, renewals and
replacements of Eklutna facilities located on such lands, including provisions
for access.
(2) Be issued consistent with existing Federal statutes, at no cost to
the Purchasers, and remain effective for a period equal to the life of Eklutna
as extended by any improvements, repairs, renewals or replacements; provided
further that if Eklutna is further sold or transferred to private ownership, BLM
may assess such reasonable and customary fees for continued use of the
rights-of-way on BLM managed lands and military lands as consistent with law or
regulation.
c. The life of Eklutna shall continue as long as Eklutna is capable of
generating and transmitting electricity, Temporary interruptions in service or
generation of power shall not constitute a termination of the life of Eklutna,
Disuse of one portion of the project system shall not cause the life to Eklutna
as a whole to terminate,
d. APAD shall provide satisfactory assurance that ANCSA 17(b) easement
rights crossing native lands are sufficient for continued operation,
maintenance, repair and replacement of Eklutna facilities by the Purchasers.
e. The above description of assets is intended to be general and not
precise or all inclusive, As part of the transition activities, the parties will
jointly prepare a particularized listing of the assets to be sold and
transferred.
f. APAD intends that the sale and transfer of Eklutna to the Purchasers
not result in additional costs to the Purchasers for licenses, permits or other
rights for Eklutna,, which costs would not have been incurred under continued
Federal ownership of Eklutna.
g. Nothing in this Agreement shall prevent Purchasers from seeking
substantial change in Eklutna. Purchasers shall be responsible for any
appropriate approvals by affected government and non-governmental entities
required for such substantial change.
h. On the Transaction Date, the APAD shall convey or cause to be
conveyed title to all Eklutna assets to the Purchasers by bill of sale or other
instrument of conveyance, provided that Purchasers pay or make arrangement for
payment under Section 5 of
Eklutna Purchase Agreement August 2, 1989
Page 4
this Agreement, and provided further that for any assets not available for
transfer at the Transaction Date, APAD shall provide:
(1) Mutually satisfactory assurance that such remaining assets will be
transferred to the Purchasers subsequently and in a timely fashion, and
(2) Clear authority to the Purchasers for the beneficial use, enjoyment
and occupancy of such remaining assets pending their conveyance to the
Purchasers,
(3) If APAD fails to perform any of the requirements stated in
paragraphs 4(h),, 4(h)(1) or 4(h)(2) above,, the parties agree to discuss
appropriate remedies. The parties may agree to mediation, arbitration or other
means to resolve issues presented by a failure of APAD to perform such
requirements, Purchasers shall also have an absolute right to terminate the
Agreement in the event APAD fails to perform such requirements,
i. If after the Transaction Date some event occurs which prevents APAD
from transferring title and beneficial use, enjoyment and occupancy of Eklutna
to the Purchasers, the parties agree to discuss and implement appropriate
remedies including resolution through negotiation, arbitration or litigation, as
appropriate.
5. Price and Payment Terms.
a. If the Transaction Date is October 1. 1989, the selling
price shall be $10,435,000.
If the Transaction Date is October 1. 1990, the selling
price shall be $9,580,000.
If the Transaction Date is October 1, 1991, the selling price shall be
$8,631,000.
If the Transaction Date is other than one of the three above dates, the
selling price will be calculated by APAD as the discounted present value as of
the Transaction Date of all remaining principal and interest payments after the
Transaction Date according to the payment schedule shown on Exhibit B of this
agreement plus $1 f 000 I 000 ($1 million) , Exhibit B payments for the first
year will be prorated to reflect the portion of the year remaining after the
Transaction Date. Subsequent Exhibit B payments will be assumed at mid-year
(April),
Eklutna Purchase Agreement August 2. 1989
Page 5
The price determination is to be included in the transition plan
required under Section 9 below.
b. The Purchasers shall pay the full selling price to the United States
Treasury within five years after the Transaction Date. Any portion of the
selling price paid after the Transaction Date will carry interest charges
payable to the United States Treasury as discussed below, If the full price is
paid by the Transaction Date, there will be no interest charges.
The purpose for allowing up to five years for the payments is to
provide some flexibility to the Purchasers in arranging for payment and start up
costs so as to minimize adverse impacts on Purchasers" ratepayers, The purpose
of the interest charges is to assure that the United States Treasury receives
the full value of the selling price. The Purchasers shall not seek Federal
financing for the purchase.
c. The discount rate to be used for determination of the
selling price shall be nine percent (9%),
The interest rate to be charged for payments after the Transaction Date
shall be nine percent (9%).
The sales price described above is full consideration for all Eklutna
assets described in Section 4 (Assets to be Sold and Transferred).
d. APAD shall not change its rate criteria for the purpose of
accelerating principal payments before the Transaction Date, The Purchasers
shall not delay their take of allocated power for the purpose of shifting
revenues beyond the Transaction Date,
6. Responsibilities.
a. As of the Transaction Date, the Purchasers shall assume all
ownership responsibilities for Eklutna and ownership responsibilities of APAD
and its successors for Eklutna shall cease, except as follows:
(1) APAD shall be solely responsible for all costs to
close out APAD responsibilities including but not limited to
Federal employee entitlements and benefits for APAD
employees,
(2) The parties recognize that there may be unfinished work as of the
Transaction Date which is the responsibility of APAD to complete. Such
unfinished work could include incomplete transfer of some assets to be completed
by APAD under Sections 4 and 10 or specific APAD responsibilities
Eklutna Purchase Agreement August 2, 1989
Page 6
arising out of the joint determination of maintenance activities to be completed
by APAD under Sections 9 and 10, APAD shall be solely responsible for such
unfinished work,
(3) APA shall be solely responsible for any claims or other legal
proceedings arising from actions or alleged actions by APAD while APAD managed
or operated Eklutna or from actions or alleged actions by APAD in carrying out
remaining APAD responsibilities under this agreement after the Transaction
Date."
7. Operation and Maintenance Expenses, Revenues.
Operation and maintenance expenses up to the Transaction Date,
including all obligations incurred by APAD which require payments after the
Transaction Date shall be the responsibility of APAD, Subsequent operation and
maintenance expenses shall be the responsibility of the Purchasers, APAD fund
balances from Congressional appropriations as of the Transaction Date shall
remain with APAD.
All revenues for power sold up to the Transaction Date will be returned
to the United States Treasury, The Purchasers shall be responsible for sales of
power after the Transaction Date, including the collection and disposition of
revenues therefrom.
8. Non-Power Users.
a. The parties do not intend to adversely affect non-power users'
rights as a result of transfer of ownership and control of Eklutna from the
Federal government to the Purchasers.
As of the Transaction Date, the Purchasers shall assume all APAD
responsibilities and benefits with respect to the following agreements,
including amendments and supplemental agreements made or entered into prior to
the Transaction Date, provided that after the effective date of this Agreement,
APAD shall consult with the Purchasers prior to making additional amendments and
supplemental agreements:
(1) The agreement dated February 17, 1984, between APAD and the
Municipality of Anchorage concerning the Eklutna Water Project; as amended by
Supplemental Agreement
No. 1 dated August 24, 1988;
(2) The agreement dated November 1, 1982, between APAD and Cook Inlet
Aquaculture Association concerning the
Eklutna hatchery,
Eklutna Purchase Agreement August 2, 1989
Page 7
b. The Purchasers shall consult with BLM and ADNR to ensure
effective and proper management of lands required for Eklutna,
c. Except to the extent Purchasers determine public recreational uses
shall be limited by safety and operational requirements, the Purchasers will
continue to make Eklutna lands and water available to the public for recreation
uses.
9. Transition Plans and Activities.
a. Within six months after the Congressional authorization is obtained,
the Purchasers and APAD shall adopt specific transition plans setting forth the
arrangements and a timetable for completing the sale and transfer, The parties
intend that the transition plans shall foster an efficient, orderly and
expeditious transfer of Eklutna and its operation to the Purchasers, minimize
transition costs and minimize adverse impacts on employees, The transition plans
and activities shall be developed jointly by the Purchasers and APAD and, among
other items, shall include:
(1) The selection of a "Transaction Date" on which
ownership of Eklutna would transfer to the Purchasers;
(2) A schedule for payments to the United States
Treasury including provisions for reasonable grace periods;
(3) Arrangements and timetable for the transfer of
operations, maintenance, power marketing and administration
of Eklutna;
(4) A definition of activities and schedules for
completing the sale and the assignment of responsibilities
for such activities;
(5) A continuation of the consultations and access to records and data,
and arrangements and timetable for transfer of data and other records to the
Purchasers;
(6) Provisions for environmental, engineering and
safety inspections by the Purchasers and APAD and a joint
determination by the Purchasers and APAD of specific
maintenance activities, including procurement, to be
completed by the APAD;
(7) If necessary, provisions for completing any asset
transfer actions that may not be completed as of the
Transaction Date;
(8) A particularized listing of all the Eklutna assets
to be sold and transferred, including photocopies of all
Eklutna Purchase Agreement August 2, 1989
Page 8
rights-of-way obtained from BLM, accurate location maps of the Eklutna
facilities tied to public land surveys, and suitable legal descriptions of all
real property interest. The parties to this Agreement recognize that the lands
work will not be completed before the date of the transition plans,
(9) A description of the condition of title to the Eklutna assets as of
the date of the transition plans, identifying with particularity third party
interests and rights and other matters affecting title that may materially
impair the ability of the Purchasers to have the full beneficial use,,
enjoyment, occupancy and operation of the Eklutna assets, and a description of
APAD's intended course of action prior to the Transaction Date to remove,
resolve or limit such matters,
(10) Transition staffing plans as necessary to assure continuity of
operations and minimizing adverse impacts on APAD employees, In this regard, the
parties agree that for two years after the Transaction Date APAD Eklutna
personnel have first call on post-transfer Eklutna jobs for which they are
qualified subject to the labor agreements of Purchasers. The staffing plans
shall also consider transferring portions or all of the operations and
maintenance functions to the Purchasers in advance of the Transaction Date, if
that course of action is found to be feasible and helpful in minimizing adverse
impacts to employees. In a manner consistent with their personnel policies and
staffing requirements, the Purchasers will assist in locating
suitable employment opportunities for displaced APAD
employees for a period of two years after the Transaction
Date; and
(11) Other matters as may be considered necessary by
the parties,
10. Interim Activities.
The parties to this Agreement recognize that, in addition to the
transition plans and activities described above, a number of actions need to be
taken by the parties and other entities. The asset transfer and sale involves
several entities including the Federal, State and local governments and two
Alaska Native corporations. The parties intend to maintain full coordination
with each of these entities and ensure that legislation authorizing the sale and
transfer provides appropriate authority to implement the sale and transfer, The
parties shall take all actions necessary to complete the sale and transfer
including, but not limited to, the following listed actions:
Eklutna Purchase Agreement August 2, 1989
Page 9
a. APAD shall prepare Congressional legislation needed to implement
this Agreement. The legislation, among other items, shall include provisions to
accomplish the following:
(1) Authorize in accordance with this Agreement the sale and transfer
of Eklutna to the Purchasers.
(2) Direct and authorize other Federal agencies, including the United
States Department of the Interior, to assist and cooperate in sale
implementation including transfer of Eklutna assets under their jurisdiction.
(3) Authorize and direct the Secretary of Interior to issue
rights-of-way to Alaska Power Administration for subsequent assignment to
Purchasers at no cost to remain effective for a period equal to the life of
Eklutna as extended by improvements, repairs, renewals or replacements,
sufficient for operation, maintenance, repair and replacement of Eklutna
facilities located on lands managed by the BLM including land selected by the
State of Alaska, and military lands, including access; provided that if Eklutna
is further sold or transferred to private ownership, the BLM may assess such
reasonable and customary fees for continued use of the rights-of-way on BLM
managed lands and military lands as consistent with current law or regulation;
provided further that at no additional cost fee title to lands at Anchorage
Substation shall be transferred to Purchasers if the Department of Interior
determines that the lands are available under law for conveyance to the
Purchasers.
(4) Authorize the State of Alaska (State) to select and direct the
Secretary of Interior to convey to the State certain Eklutna lands identified in
Exhibit A, including the lake bed of Eklutna Lake if not navigable under the
submerged Lands Act and approximately 853 acres of improved lands housing the
powerhouse,, intake structure,, dam facilities, and a portion of the power
tunnel under the provision of section 6 of the Alaska Statehood Act of July 7,
1958, Public Law 85-508, and the North Anchorage Land Agreement of January 31,
1983, such conveyances to be
subject to the rights-of-way being provided to Purchasers
under Section 10(a)(3) above.
(5) Exempt Eklutna and the Purchasers,, including but not limited to
subsequent facilities modifications, from jurisdiction of the Federal Energy
Regulatory Commission under the Federal Power Act (16 U*S*CO 791),, unless such
modifications impact Federal lands other than those
presently used for Eklutna.
Eklutna Purchase Agreement August 2, 1989
Page 10
(6) Authorize expenditure of such sums as are necessary to prepare
Eklutna assets for sale and conveyance, such preparations to provide sufficient
title to ensure the beneficial use, enjoyment and occupancy to the Purchasers of
the assets to be sold.
b. APAD shall, in addition to the responsibilities set
forth in Section 4:
(1) Prepare all Eklutna assets including but not limited to those
assets described in Section 4 (Assets to be Sold and Transferred) for conveyance
to the Purchasers including all actions necessary to establish sufficient title
to ensure the beneficial use, enjoyment and occupancy to the Purchasers of such
assets.
(2) Apply for and obtain BLM rights-of-way necessary for operation,
maintenance, repair and replacement of Eklutna facilities located on Federal
lands, managed by the BLM, such rights-of-way to be subsequently transferred to
the Purchasers.
(3) Provide satisfactory assurance that the Purchasers have sufficient
ANCSA 17(b) easement rights for continued operation, maintenance,, repair and
replacement of Eklutna facilities.
(4) Continue to maintain Eklutna in accordance with
prudent utility practices, and Federal, and utility industry
standards,
(5) Appoint one person and an alternate to represent APAD for all
activities required of APAD after the execution of this Agreement and prior to
the Transaction Date.
(6) Manage and operate Eklutna in accordance with prudent utility
practices, and Federal and utility industry standards in such a manner as to not
diminish the capability of Eklutna to produce energy and power at historic
levels.
C. Purchasers shall:
(1) Establish organizational, functional and staffing arrangements for
operations, maintenance and administration of Eklutna to be in effect on or
before the Transaction Date including the following:
(A) Purchasers agree with each other and the APAD that each Purchaser
shall appoint one person and an
Eklutna Purchase Agreement August 2. 1989
Page 11
alternate to represent that Purchaser for all activities required of Purchasers
after the execution of this Agreement and prior to the Transaction Date.
(B) By the Transaction Date, Purchasers shall agree in writing to have
an effective organization which shall be responsible for the sale of power,
operation and maintenance of Eklutna and, if necessary, Purchasers shall execute
power sales agreements to purchase power from Eklutna.
(C) Purchasers shall provide in their organizational agreements that if
one or more of the Purchasers are unable or unwilling to purchase its share of
Eklutna, then the other Purchasers may purchase that share,
(2) Arrange for the payment of the amounts set out in
Section 5 (Price and Payment Terms) to be paid to the United
States Treasury,
d. The Purchasers and APAD shall conduct engineering, environmental and
safety inspections at Eklutna and jointly determine a list of items or matters
they consider necessary to be changed or modified prior to transfer. APAD shall
make such changes and modifications prior to the Transaction Date, or provide
appropriate assurances that those changes or modifications shall be made, The
Purchasers and APAD shall also consensually and jointly determine the
acceptability of Eklutna for transfer to the Purchasers, Failure to reach
agreement on the joint determination of either the list of necessary changes or
modifications or the acceptability of Eklutna for transfer shall constitute
grounds for termination of the Agreement.
e. This Agreement may be terminated by Purchasers if, prior to the
Transaction Date, the value of Eklutna or its capability to produce energy and
power has been diminished by any cause after the execution of this Agreement.
Any notice of termination shall be provided to APAD in writing.
f. The parties agree that the above-listed action in subsections(a)
through (d) are crucial to the sale and transfer of Eklutna. The Purchasers may
elect to terminate this Agreement if the authorizing legislation does not
contain substantially the same provisions set forth in Section 10(a) or if APAD
fails to complete its obligations under Sections 10(b) and 10(d), APAD may elect
to terminate this Agreement if the Purchasers fail to complete their obligations
under Sections 10(c) and 10(d).
11. Post-sale Operations, Maintenance and Power Marketing
Arrangements.
Eklutna Purchase Agreement August 2, 1989
Page 12
The Purchasers shall establish appropriate organizational, staffing and
administrative arrangements for Eklutna on or before the Transaction Date.
To assist in implementation of these post-sale arrangements, APAD shall
make available for inspection and use by the Purchasers all Eklutna records and
data and shall consult with the Purchasers on operation procedures, replacement
schedules, staffing plans and training on a continuing basis starting on the
effective date of this Agreement,
These provisions are intended to ensure that the Purchasers have full
opportunity to become fully familiar with Eklutna and to help identify further
specific actions that shall facilitate the transfer of operation of Eklutna to
the Purchasers.
12. Effective Date.
This Agreement shall become effective as of the calendar date on which
all parties have executed this Agreement.
13. Environmental Management.
The parties intend that the transfer of ownership be accomplished in a
manner that assures continued compliance with environmental and public safety
standards and laws including appropriate dam safety measures, The parties note
that, under applicable Department of Energy instructions, APAD is required to
prepare a management plan for Eklutna covering environmental and safety
requirements.
APAD shall develop and implement such management plan prior to the date
on which the transaction plans are adopted and in full consultation with the
Purchasers, Failure by the Purchasers to agree to such a plan shall be grounds
for termination of this Agreement by the Purchasers.
The Purchasers agree to continue the implementation of such management
plan after the Transaction Date, including periodic updates of the plan as
needed.
14. Term.
This Agreement shall remain in effect for such time as is necessary to
complete the sale of Eklutna to the Purchasers and payments for such sale to the
United States Treasury, provided that this Agreement shall terminate two years
after the effective date if authorization by Congressional legislation has not
been obtained within those two years,, and provided further
Eklutna Purchase Agreement August 2. 1989
Page 13
that this Agreement shall terminate two years after the date of the
Congressional authorization if transfer of Eklutna to the Purchasers has not
occurred by that time. The above termination dates may be extended by mutual
agreement of the parties,
The above termination provisions are intended to provide ample time to
obtain Congressional authorization and complete the transaction. However, it is
the intent of the parties to obtain such authorization as quickly as possible
and complete the sale as quickly thereafter as is reasonably practicable.
This Agreement shall be terminated if, at any time prior to the Transaction
Date, the Purchasers determine they are not able to meet the payment terms and
so notify APAD in writing,
15. Dispute Resolution.
The parties shall attempt to settle any claim or controversy arising
out of this Agreement in good faith. The parties may agree to submit any claim
or controversy to a mutually-acceptable mediator, the cost of which shall be
borne equally by APAD and Purchasers, The use of such a procedure shall not be
construed to affect adversely the rights of either party under the doctrines of
laches, waiver or estoppel. Nothing in this section shall prevent any party from
resorting to judicial procedures. Any judicial action shall be filed in the
Federal court at Anchorage, Alaska,
16. Notice.
All notices under this Agreement shall be in writing directed to the
Purchasers through the General Managers of the Purchasers, and to the APAD
through the Administrator of the APAD or its successor.
17. Amendment.
This Agreement may be modified only by mutual agreement in writing
between the Purchasers and APAD. Any such modifications must be consistent with
applicable State and
Federal law.
18. Approvals.
Any final sale and transfer of Eklutna shall become effective only on
the obtaining of all required regulatory and administrative approvals or on
receiving satisfactory assurance that such approvals are forthcoming.
Eklutna Purchase Agreement August 2, 1989
Page 14
19. Assignment.
This Agreement shall inure to the benefit of, and be binding upon the
respective successors and assigns of the parties to this Agreement, provided
however, that neither this Agreement nor any interest therein shall be
transferred or assigned by any party to any other party,, except to the United
States or an agency thereof, without the written consent of the others whose
written consent shall not be unreasonably withheld,
However, any assignment by Purchasers must be made to a successor in
interest to the Purchasers and such assignment shall provide that the power from
Eklutna be used for the benefit of customers in the service area of the
Purchasers, Any of the Purchasers may assign its interest to the Alaska Electric
Generation & Transmission Cooperative,, Inc. (AEG&T) subject to any existing
agreements, including amendments, between Chugach,, AEG&T and MEA.
20. Force Majeure.
Failure by either APAD or the Purchasers to perform any of the
requirements of this Agreement brought about by causes beyond their control and
without fault or negligence of the parties shall constitute an excusable delay.
In any instance where excusable delay occurs, the time for completing the work
shall be extended by negotiation of the parties,
21. Continuing Support and Assistance.
The parties agree to support and assist each other in the mutually
satisfactory resolution of any unforeseen problems associated with the transfer.
APAD and the Purchasers recognize that new issues involving the transfer process
may arise prior to and after transfer, or that issues considered resolved may
need further clarification, implementation or other resolution. APAD and the
Purchasers agree that open lines of communication are desirable after the date
of this Agreement and after transfer to facilitate the transfer process. To that
end , APAD and the Purchasers each agree to exercise their good faith efforts in
implementing the terms of this Agreement expeditiously. APAD
further agrees to use its best efforts to make available an appropriate Federal
entity to implement this section in the event that APAD as an identifiable
Federal entity ceases to exist.
22. Relationship of Purchasers.
The covenants, obligations and liabilities of the Purchasers are
intended to be several and not joint or collective, and nothing contained herein
shall be construed to
Eklutna Purchase Agreement August 2, 1989
Page 15
create an association, joint venture, trust or partnership, or to impose a trust
or partnership covenant, obligation or liability on or with regard to any of the
Purchasers. Each Purchaser shall be individually responsible for its own
covenants, obligations and liabilities as provided in this Agreement. No
Purchaser shall, by virtue of this Agreement, be under the control of, or be
deemed to control, the other Purchaser. No Purchaser shall be the agent of, or
have a right or power to bind, the other Purchasers without its express written
consent, except as may be expressly provided in this Agreement,, or as may be
otherwise provided by existing law. The provisions of this Section may be
modified by the final approved agreements provided for under Section 10 (c) (1)
,
23. Agreement for Benefit of Parties Only.
As provided in Section 8, above, the parties intend to protect fully
the rights of non-power users of Eklutna land and water. The parties do not
intend by this Agreement to create rights in, or to grant remedies to, any third
party as a beneficiary of this Agreement, or as a beneficiary of any duty,
covenant, obligation or undertaking established by, or performed pursuant to,
this Agreement.
24. Miscellaneous Provisions.
a. The parties agree, upon request of the other parties, to make,
execute and deliver any and all documents reasonably required to implement this
Agreement.
b. Captions and headings appearing in this Agreement are included to
facilitate reference to the Agreement, and they are not to be read as a part of
this Agreement, nor shall they have bearing on its interpretation.
c. This Agreement may be executed simultaneously in two or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument.
IN WITNESS WHEREFORE, the parties have caused this
Agreement to be executed the day and year written hereafter.
Eklutna Purchase Agreement August 2, 1989
Page 16
DATED this 2nd day of August, 1989,
CHUGACH ELECTRIC ASSOCIATION, INC,
by: /s/ Lace Walls
Lace Walls
President
MATANUSKA ELECTRIC ASSOCIATION, INC,
by: /s/ Robert L. Husted
Robert L. Husted
President
MUNICIPALITY OF ANCHORAGE
D/B/A MUNICIPAL LIGHT AND POWER
by: /s/ Tom Fink
Tom Fink
Mayor
ALASKA POWER ADMINISTRATION
by: /s/ Robert J. Cross
Robert J. Cross
Administrator
Eklutna Purchase Agreement August 2. 1989
Exhibit A Page 1 of 2
Lands, Easements and Rights-of-Way
Exhibit A consists of this narrative (pages 1 and 2 of 2) and the
map prepared by BLM, signed and dated February 3, 1989,
This exhibit describes and displays present land status for the Eklutna
Hydroelectric Project and describes in general terms the conveyances of land and
land rights contemplated in the purchase agreement.
1. BLM - managed lands and military lands used for Eklutna Project for
which BLM is to provide APAD rights-of-way sufficient for operation,
maintenance, repair and replacement of Eklutna facilities, such
rights-of-way to be assigned by APAD to the Purchasers.
Legend Symbols and Description.
Withdrawals. Refers to approximately 863 acres of public lands
withdrawn for Eklutna at the "Intake Area," "Power Tunnel," "Eklutna
Powerplant" and "Anchorage Substation," The total acreage is comprised
of the following land:
a. Approximately 320 acres withdrawn for the "Power Tunnel" under
Public Land Order 1231 dated September 28, 1955.
b. Approximately 230 acres utilized for the "Intake Area" and
approximately 60 acres for a portion of "Eklutna Powerplant" as
described by ANCSA 3(e) determination AA-51183 dated July 30, 1986.
c. Approximately 243 acres utilized for "Eklutna Powerplant" as
described by ANCSA 3(e) determination AA-42534 dated September 1, 1982.
d. Approximately 10 acres withdrawn for
"Anchorage Substation" under Secretarial
order dated April 4, 1952.
State Land-R/W. Refers to rights-of-way across State-selected lands
covering the transmission line east of "Eklutna Powerplant" to the Knik
River.
Military Land-R/W, Refers to rights-of-way across military lands used
for Eklutna transmission lines.
Eklutna Purchase Agreement August 2, 1989
Exhibit A Page 2 of 2
Acquired-3 (e). Refers to approximately 2.5 acres of acquired land used
for "Reed Substation" as described by ANCSA 3(e) determination AA-45155
dated July 30, 1985.
2. ANCSA 17(b) Easements.
Map symbol: N Native Land - 17(b) Easements.
Refers to rights-of-way that are reserved for portions of the 115kV
transmission line, access roads and other Eklutna facilities located on Native
corporation lands, and exist as easement reservations in the ANCSA conveyances
to the Native corporations pursuant to Section 17(b) of ANCSA. These easements
will not be altered by the sale of Eklutna and the Purchasers may use these
easements for their intended purposes,
3. APAD Acquired Land and Easements.
Refers to land and easements acquired by the Bureau of Reclamation
(predecessor of APAD) during construction of Eklutna and now controlled by APAD.
APAD will assign the land and easements to the Purchasers.
Legend Symbols and Description:
Acquired. Refers to approximately 0.8 acres of
land owned by APAD at Palmer Substation,
Acquired-Easements, Refers to approximately 33 easements across private
lands acquired by the Bureau of Reclamation (predecessor of APAD) and now held
by APAD,
4. Other Easements on Private Land.
Map [Symbol]: Note: Other Easements on Private
Lands To Be Acquired - See Exhibit
A Narrative
Refers to approximately two hundred and fifty (250) parcels of private land
located along the 115kV transmission line, many of which require title curative
action for purposes of perfecting assignable easement rights or rights-of-way
for the Purchasers, APAD shall be responsible for acquiring assignable easement
rights or rights-of-way across these lands, for subsequent assignment to
Purchasers,
5. Reservoir.
Eklutna Lake as designated on the map is the reservoir
described in the body of the Agreement.
Exhibit B
Eklutna Purchase Agreement
Future Principal and Interest Payments,
(FY 1987 Power Repayment Study Data)
Units: $1000's
FISCAL YEAR PRINCIPAL INTEREST TOTAL
1989 693 346 1,039
1990 1,316 316 1,632
1991 1,383 283 1,666
1992 0 265 265
1993 629 658 887
1994 1,476 231 1,707
1995 0 213 213
1996 1,318 196 1,514
1997 1,548 160 1,708
1998 1,586 121 1,707
1999 1,624 81 1,705
2000 0 61 61
2001 1,472 43 1,515
2002 952 12 964
TOTAL '89 - 02 $13,997 $2,586 $16,583
TOTAL '90 - 02 $13,304 $2,240 $15,544
TOTAL '91 - 02 $11,988 $1,924 $13,912
TOTAL '92 - 02 $10,605 $1,641 $12,246
Projected Selling Price
Units: $1000's
Transaction Present Value of 1/ Selling
Date Remaining Payments Price
Oct. 1, 1989 $9,435 $10,435
(start of FY 1990)
Oct. l, 1990 $8,580 $ 9,580
(start of FY 1991)
Oct. 1, 1991 $7,631 $ 8,631
(start of FY 1992)
1/ Discount Rate of 9.0%; payments assumed at mid year.
Eklutna Purchase Agreement
August 2, 1989
Amendment No. 1
1. Purpose.
This Amendment No. 1 reflects new information with
respect to lands, extends the term of the August 2, 1989, Eklutna
Purchase Agreement ("Agreement"), and states the selling price if.
the Transaction Date is October 1, 1992, or October 1, 1993.
2. Amendments to Section 10, Interim Activities.
Section 10a. (4) of the Agreement is amended to read as
follows:
"10.a.(4) Authorize the State of Alaska (State) to select and direct the
Secretary of the Interior to convey to the State certain Eklutna lands
identified in Exhibit A, including approximately 853 acres of improved lands
housing the powerhouse, intake structure, dam facilities,, and a portion of the
power tunnel under the provision of Section 6(a) of the Alaska Statehood Act of
July 7, 1958, Public Law 85-508, and the North Anchorage Land Agreement of
January 31, 1983, such conveyances to be subject to the rights-of-way being
provided to Purchasers under Section 10(a)(3) above."
3. Amendment to Section 5. Price and Payment Terms.
Section 5 (a) of the Agreement is amended to read as follows:
"a. If the Transaction Date is October 1, 1991, the selling
price shall be $8,613,000.
If the Transaction Date is October 1, 1992, the selling
be $9,022,000.
If the Transaction Date is October 1, 1993, the selling be $8,818,000.
If the Transaction Date is other than one of the three above dates,
the selling price will be calculated by APAD as
the discounted present value as of the Transaction Date of all remaining
principal and interest payments after the Transaction Date according to the
payment schedule shown on Exhibit B of this agreement plus $1,000,000 ($1
million), Exhibit B payments for the first year will be prorated to reflect the
portion of the year remaining after the Transaction Date. Subsequent Exhibit B
payments will be assumed at mid-year (April).
Eklutna Purchase Agreement August 2, 1989
Amendment No. 1 Page 2
The price determination is to be included in the
transition plan required under Section 9 below."
4. New Exhibit B.
A new Exhibit B dated June 25, 1991, reflecting the above amendment to
Section 5, Price and Payment Terms, is incorporated in the Agreement in place of
the original Exhibit B.
5. Extended Term.
The first paragraph of Section 14 of the Agreement is amended to read
as follows:
"This Agreement shall remain in effect for such time as is necessary to
complete the sale of Eklutna to the Purchasers and payments for such sale to the
United States Treasury, provided that this Agreement shall terminate four years
after the effective date if authorization by Congressional legislation has not
been obtained within those four years, and provided further that this Agreement
shall terminate two years after the date of the Congressional authorization if
transfer of Eklutna to the Purchasers has not occurred by that time. The above
termination dates may be extended by mutual agreement of the parties."
6. Effective Date
This Amendment No. 1 to the Agreement shall become
effective as of the calendar date on which all parties have
executed this Amendment.
Eklutna Purchase Agreement August 2, 1989
Amendment No. 1 Page 3
DATED this 30th day of July, 1991.
CHUGACH ELECTRIC ASSOCIATION, INC.
By: /s/ Thomas D. Humphrey, Pres 7/30/91
Thomas D. Humphrey Date
President
MATANUSKA ELECTRIC ASSOCIATION, INC.
By: /s/ Jess Lee 7/29/91
Jess Lee Date
President
MUNICIPALITY OF ANCHORAGE
D/B/A MUNICIPAL LIGHT AND POWER
By: /s/ Tom Fink 7/30/91
Tom Fink Date
Mayor
ALASKA POWER ADMINISTRATION
By: /s/ Robert J. Cross July 26, 1991
-------------------------------------- ---------------
Robert J. Cross Date
Administrator
Exhibit B 06/25/91
Eklutna Purchase Agreement
Future Principal and Interest Payments
(FY 1987 Power Repayment Study Data)
Units: $1,000's
FISCAL YEAR PRINCIPAL INTEREST TOTAL
1989 693 346 1,039
1990 1,316 316 1,632
1991 1,383 283 1,666
1992 0 265 265
1993 629 258 887
1994 1,476 231 1,707
1995 0 213 213
1996 1,318 196 1,514
1997 1,548 160 1,708
1998 1,586 121 1,707
1999 1,624 81 1,705
2000 0 61 61
2001 1,472 43 1,515
2002 952 12 964
TOTAL '92 - 02 $10,605 $1,641 $12,246
TOTAL '93 - 02 $10,605 $1,376 $11,981
TOTAL '94 - 02 $9,976 $1.118 $11,094
Projected Selling Price
Units: $1,000's
Transaction Present Value of Selling
Date Remaining Payments Price
Oct. 1, 1991 $7,613 $8,613
(start of FY 1992)
Oct. 1, 1992 $8,022 $9,022
(start of FY 1993)
Oct. 1, 1993 $7,818 $8,818
(start of FY 1994)
Discount Rate 9.0%; payments assumed at mid-year.
Eklutna Purchase Agreement
August 2, 1989
Amendment No. 2
1. Purpose.
This Amendment No. 2 extends the term of the August 2,
1989, Eklutna Purchase Agreement ("Agreement"), and states the
selling price if the Transaction Date is October 1, 1993,
October 1, 1994, or October 1, 1995,
2. Amendment to Section 5, Price and Payment Terms.
Section 5 (a) of the Agreement is amended to read as follows:
"a. If the Transaction Date is October 1, 1993, the selling
price shall be $8,810,000.
If the Transaction Date is October 1, 1994, the selling price shall be
$7,733,000.
If the Transaction Date is October 1, 1995, the selling price shall be
$8,117,000.
If the Transaction Date is other than one of the three above dates, the
selling price will be calculated by APAD as the discounted present value as of
the Transaction Date of all remaining principal and interest payments after the
Transaction Date according to the payment schedule shown on Exhibit B of this
agreement plus $1,000,000 ($1 million). Exhibit B payments for the first year
will be prorated to reflect the portion of the year remaining after the
Transaction Date. Subsequent Exhibit B payments will be assumed at mid-year
(April).
The price determination is to be included in the
transition plan required under Section 9 below,"
3. New Exhibit B.
A new Exhibit B dated March 8, 1993, reflecting the above amendment to
Section 5, Price and Payment Terms, is incorporated in
the Agreement in place of the Amendment No. 1 Exhibit B.
4. Extended Term.
The first paragraph of Section 14 of the Agreement is amended to read
as follows:
Eklutna Purchase Agreement August 2, 1989
Amendment No. 2 Page 2
"This Agreement shall remain in effect for such time as is necessary to
complete the sale of Eklutna to the Purchasers and payments for such sale to the
United States Treasury, provided that this Agreement shall terminate six years
after the effective date if authorization by Congressional legislation has not
been obtained within those six years, and provided further that this Agreement
shall terminate two years after the date of the Congressional authorization if
transfer of Eklutna to the Purchasers has not occurred by that time. The above
termination dates may be extended by mutual agreement of the parties."
5. Effective Date.
This Amendment No. 2 to the Agreement shall become
effective as of the calendar date on which all parties have
executed this Amendment.
Eklutna Purchase Agreement August 2, 1989
Amendment No. 2 Page 3
DATED this 14 day of June, 1993.
CHUGACH ELECTRIC ASSOCIATION, INC,
By: /s/ William Ryan 5/19/93
William L. Ryan Date
President
MATANUSKA ELECTRIC ASSOCIATION, INC,
By: /s/ Barbara J. Miller June 8, 1993
-------------------------------- --------------
Barbara J. Miller Date
President
MUNICIPALITY OF ANCHORAGE
D/B/A MUNICIPAL LIGHT AND POWER
By: /s/ Tom Fink 4/28/93
Tom Fink Date
Mayor
ALASKA POWER ADMINISTRATION
By: /s/ Michael A. Deihl 3/26/93
Michael A. Deihl Date
Administrator
Exhibit B 03/26/93
Eklutna Purchase Agreement
Amendment No. 2
Future Principal and Interest Payments
(FY 1987 Power Repayment Study Data)
Units: $1,000's
FISCAL YEAR PRINCIPAL INTEREST TOTAL
1994 1,476 231 1,707
1995 0 213 213
1996 1,318 196 1,514
1997 1,548 160 1,708
1998 1,586 121 1,707
1999 1,624 81 1,705
2000 0 61 61
2001 1,472 43 1,515
2002 952 12 964
TOTAL '94 - 02 $9,976 $1,118 $11,094
TOTAL '95 - 02 $8,500 $887 $9,387
TOTAL '96 - 02 $8,500 $674 $9,174
Projected Selling Price
Units: $1,000's
Transaction Present Value of Selling
Date Remaining Payments Price
Oct. 1, 1993 $7,810 $8,810
(start of FY 1994)
Oct. 1, 1994 $6,733 $7,733
(start of FY 1995)
Oct. 1, 1995 $7,117 $8,117
(start of FY 1996)
Discount Rate 9.0%; payments assumed at mid-year.
Eklutna Purchase Agreement
April 21, 1995
Amendment No. 3
1. Purpose.
This Amendment No. 3 extends the term of the August 2, 1989, Eklutna
Purchase Agreement('Agreement"), and states the selling price if the Transaction
Date is October 1, 1995, October 1, 1996, or October 1, 1997.
2. Amendment to Section 5. Price and Payment Terms.
Section 5 (a) of the Agreement is amended to read as follows:
" a.If the Transaction Date is October 1, 1995,the selling price shall
be $8,117,000.
If the Transaction Date is October l, 1996, the selling price shall be
$7,178,000.
If the Transaction Date is October 1, 1997, the selling price shall be
$5,953,000.
If the Transaction Date is other than one of the three above dates, the
selling price will be calculated by APAD as the discounted present value as of
the Transaction Date of all remaining principal and interest payments after the
Transaction Date according to the payment schedule shown on Exhibit B of this
agreement plus $1,000,000 ($1 million). Exhibit B payments for the first year
will be prorated to reflect the portion of the year remaining after the
Transaction Date. Subsequent Exhibit B payments will be assumed at mid-year
(April).
The price determination is to be included in the transition plan required under
Section 9 below."
3. New Exhibit B.
A new Exhibit B dated February 23, 1995, reflecting the above amendment
to Section 5, Price and Payment Terms, is incorporated in the Agreement in place
of the Amendment No. 1 Exhibit B.
4. Extended Terms.
The first paragraph of Section 14 of the Agreement is amended to read
as follows:
Eklutna Purchase Agreement April 21, 1995
Amendment No. 3 Page 2
"This Agreement shall remain in effect for such time as is necessary to
complete the sale of Eklutna to the Purchasers and payments for such sale to the
United States Treasury, provided that this Agreement shall terminate eight years
after the effective date if authorization by Congressional legislation has not
been obtained within those eight years, and provided further that this Agreement
shall terminate two years after the date of the Congressional authorization if
transfer of Eklutna to the Purchasers has not occurred by that time. The above
termination dates may be extended by mutual agreement of the parties."
5. Effective Date.
This Amendment No. 3 to the Agreement shall become effective as of
the calendar date on which all parties have executed this Amendment.
Eklutna Purchase Agreement April 21, 1995
Amendment No. 3 Page 3
DATED this 22 day of June, 1995.
CHUGACH ELECTRIC ASSOCIATION, INC.
By: /s/ Elizabeth P. Kennedy 4/25/95
Elizabeth Page Kennedy Date
President
MATANUSKA ELECTRIC ASSOCIATION, INC.
By: /s/ Barbara J. Miller May 4, 1995
----------------------------------------------------- -------------
Barbara J. Miller Date
President
MUNICIPALITY OF ANCHORAGE
D/B/A MUNICIPAL LIGHT AND POWER
By: /s/ Larry D. Crawford 6/22/95
Larry D/ Crawford Date
Municipal Manager
ALASKA POWER ADMINISTRATION
By: /s/ Michael A. Deihl April 21, 1995
--------------------------------------------------- ----------------
Michael A. Deihl
Administrator
02/23/95
Exhibit B
Eklutna Purchase Agreement
Amendment No. 3
FUTURE PRINCIPAL AND INTEREST PAYMENTS
(FY 1987 POWER REPAYMENT STUDY DATA)
Units: $1,000's
FISCAL YEAR PRINCIPAL INTEREST TOTAL
1996 1,318 196 1,514
1997 1,548 160 1,708
1998 1,586 121 1,707
1999 1,624 81 1,705
2000 0 61 61
2001 1,472 43 1,515
2002 952 12 964
TOTAL '96 - 02 8,500 674 9,174
TOTAL '97 - 02 7,182 478 7,660
TOTAL '98 - 02 5,634 318 5,952
PROJECTED SELLING PRICE
Units: $ 1,000's
Present Value of
Remaining Payments
Transaction Date (Discount Rate = 9%) Selling Price
October 1, 1995 7,117 8,117
(start of FY 1996)
October 1, 1996 6,178 7,178
(start of FY 1997)
October 1, 1997 4,953 5,953
(start of FY 1998)
NOTE: Payments assumed at mid-year.
c:\1-Patty\Eklutna\Transpln\Exhibt-C.doc
EXHIBIT B
Memorandum of Understanding
July 25, 1989
between
Chugach Electric Association, Inc.
Matanuska Electric Association, Inc.
Municipality of Anchorage
d/b/a Municipal Light & Power
MEMORANDUM OF UNDERSTANDING
THIS MEMORANDUM OF UNDERSTANDING is made this 25th day of July, 1989, by and
among MATANUSKA ELECTRIC ASSOCIATION INC, ("MEA"), CHUGACH ELECTRIC ASSOCIATION,
INC, ("Chugach"), and the MUNICIPALITY OF ANCHORAGE d/b/a ANCHORAGE MUNICIPAL
LIGHT & POWER ("ML&P"), MEA, Chugach and ML&P are hereinafter collectively
called the "Purchasers,"
1. Recital. The Purchasers are parties to that certain Eklutna Purchase
Agreement ("Purchase Agreement") dated as of March 31, 1989, with the Alaska
Power Administration ("APAD") which concerns the purchase by Purchasers of
certain real and personal property referred to therein as "Eklutna," It is
understood that the Purchase Agreement has not yet been executed by ML&P and is
therefore not yet effective. The parties expect that the Purchase Agreement will
be so executed and, upon that assumption, enter into this Memorandum of
Understanding.
2, Cost, Power and Title Interests of Purchasers. It is mutually
understood by the Purchasers that the allocation of output power (capacity and
energy) from Eklutna (as defined in Section 3 of the Purchase Agreement) under
the Purchase Agreement will continue as under the present participation in the
following proportions: 16/30 to ML&P, 9/30 to Chugach and 5/30 to MEA, and that
these same proportionate shares will determine the Purchasers' respective
proportionate shares of their undivided interest in the Eklutna assets
identified in Section 4 of the
- -1-
Purchase agreement, the Purchasers' respective shares of the purchase price
identified in Section 5 of the Purchase Agreement, and the Purchasers'
respective shares of Eklutna's operating costs.
3. Operation of Eklutna. It is further understood and agreed that the
Purchasers and their successors and assigns shall operate Eklutna in accordance
with prudent electric utility practices in order to produce power in the most
efficient manner possible for the maximum beneficial use of customers in the
service area of the Purchasers, subject to compliance with those water usage
agreements that the Purchasers have agreed to assume pursuant to Section 8 of
the Purchase Agreement,
MATANUSKA ELECTRIC ASSOCIATION, INC.
By: /s/ Ken Ritchey
Its: Acting General Manager
CHUGACH ELECTRIC ASSOCIATION, INC.
By: /s/ David L. Highers
Its: General Manager
MUNICIPALITY OF ANCHORAGE d/b/a
ANCHORAGE MUNICIPAL LIGHT & POWER
By: /s/ Tom Fink
Its: Mayor
JAC/dmj
K:MEA
MUNICIPALITY OF ANCHORAGE
ASSEMBLY MEMORANDUM
No. AM 674-89
Meeting Date.
From: Mayor Fink
Subject: Eklutna Purchase Agreement
In its AR87-41(S-1) as amended and dated March 3, 1987, the Anchorage Municipal
Assembly resolved that (1) the best interest of the public may be served by
federal transfer of the Eklutna Hydroelectric Facility to the Municipality or
other local entities with all rights, title and interest of the United States,
including reserved and acquired water rights; and (2) the administration may
commence formal negotiations with the Department of Energy regarding divestiture
of the project.
On May 20, 1987, the Alaska Power Association (APA) formally requested proposals
from the Municipality of Anchorage, Chugach Electric Association (CEA), and the
Matanuska Electric Association (MEA) for the purchase and transfer of the
Eklutna Power Project. The Municipality of Anchorage d/b/a Municipal Light and
Power (ML&P), CEA, and MEA (cumulatively the "Purchasers") have developed a
joint proposal for purchase of the Eklutna Project. The Joint proposals
presently under review by the Municipality of Anchorage Chugach Electric
Association and Matanuska Electric Association is entitled "Eklutna Purchase
Agreement" and sets out arrangements, terms, and conditions for sale of Eklutna
to purchasers, such arrangements terms, and conditions to be implemented if the
United States Congress authorizes such sale. The following are essential terms
of the proposed agreement:
a. The Eklutna assets to be sold and transferred generally consist of
the power productions transmissions associated real property and all other
facilities and assets, provided for Eklutna under the Eklutna Project Act of
July 31, 1950; all rights-of-way and easements for existing Eklutna facilities
located on BLM managed lands and military lands; and water rights, including the
reservoir
rights.
b. Within six (6) months of Congressional authorization, transition
plans are to be adopted which will, among other things, identify the Transaction
Date on which ownership of the Eklutna facilities will transfer to Purchasers;
determine a schedule for payment of the purchase price to the United States
Treasury; provide for the orderly transfer of the operations and related
activities Of Eklutna; provide for environmental engineering and safety
inspections by Purchasers; provide for completion of any asset transfer; develop
a particularized listing of assets to be sold or transferred; and address other
matters may be considered necessary by the parties.
ASSEMBLY MEMORANDUM
Eklutna Purchase Agreement
Page 2
c. Total or combined Purchase Price to the three purchasing utilities
is dependent on the timing of the Transaction Date:$10,435,000 if on October 1,
1989; $9,580,000 if on October 1, 1990; $81,631,000 if on October 1, 1991. Any
other Transaction Date shall result in a selling price calculated as the
discounted present value of all remaining principal and interest payments plus
$1 million. The full selling price is to be paid within five (5) years after the
Transaction Date using an interest rate of 9 percent. The discount rate to be
used in determining the selling price is also 9 percent. ML&P's share of the
purchase price is 16/30 or initially $5,565,333.33, which moneys will be
committed upon the effective date of the Agreement.
d. Effective date of the Purchase Agreement is the calendar date on
which all parties have executed the agreement. The Agreement requires
authorization by Congressional legislation within two years of the effective
date of the Agreement, and further requires transfer of Eklutna assets within
two years of Congressional legislation authorizing the transfer.
e. The covenants, obligations and liabilities of the Purchasers
are intended to be several and not joint or collective.
ML&P, CEA, and MEA shall each acquire an undivided interest
of 16/30, 9/30 and 5/30, respectively in the Eklutna Power
Project.
f. Purchasers of Eklutna are assuming all responsibilities associated
with the Agreement dated February 17, 1984 between APA and the municipality of
Anchorage concerning the Eklutna Water Project and the Supplemental Agreement
No. 1 dated August 24, 1988. AWWU's entitlement to secure a long range source of
water for Anchorage with the Eklutna Water Project is thereby preserved.
g. The Purchasers are executing a memorandum of understanding
concerning the possible election by the municipality to internally reassign its
interest in the Eklutna Power Project. In the event of a sale or transfer of
ML&P or for other reasons the Municipality may retain its interest in the
Eklutna Power Project for the benefit of the Municipality and the Eklutna Water
Project.
ASSEMBLY MEMORANDUM
Eklutna Purchase Agreement
Page 3
The subject Eklutna Purchase Agreement will result in lower costs to ML&P for
Eklutna power than under existing federal ownership. The Agreement ensures that
ML&P will retain its current share of Eklutna output for the life of the
Project. Since Eklutna is and will continue to be ML&P's lowest cost energy
sources retention of ML&P's share will continue to stabilize rates.
It is recommended that the Assembly authorize the Administration to enter into
an agreement for the purchase of Eklutna under the basic terms and conditions
outlined above.
Concur: Submitted by:
/s/ Richard L. Besse for /s/ Thomas R. Stahr
Lee Nunn Thomas R. Stahr
Executive Manager General Manager
Enterprise Activities Municipal Light & Power
Concur: Funds Certification:
(0530 Operating)
8500-8605-2328-0000
$5,565,333.33
/s/ Larry D Crawford
Larry D. Crawford
Municipal Manager /s/ Bob Nelson
Bob Nelson
Chief Fiscal Officer
Respectfully Submitted: Concur:
/s/ Tom Fink /s/ Richard D. Kibby
Tom Fink Richard D. Kibby
Mayor Municipal Attorney
Concur:
/s/ Richard L. Besse
Richard L. Besse, P.E.
General Manager
Anchorage Water & Wastewater Utility
c:\1-Patty\Eklutna\Transpln\Exhibt-C.doc
EXHIBIT C
Engineering inspection results listing (to date) including APA's response to the
Stone & Webster report in 12 pages to ML&P dated May 13, 1996.
Environmental and safety inspection results and APA's response will not be
available from Stone & Webster until after the Effective Date of this Plan.
These results are incorporated into Exhibit C by reference, and will be included
by mutual consent of the Parties upon receipt from Stone & Webster.
Mr. Moe T. Aslam, P.E. May 13, 1996
Chief Engineer
Anchorage Municipal Light & Power J.O.No. 05450.07
821 East First Avenue
Anchorage, AK 99501
TRANSFER OF THE
EKLUTNA HYDROELECTRIC PROJECT
PALMER, ALASKA
ANCHORAGE MUNICIPAL LIGHT AND POWER
Dear Moe:
The following items are suggested for inclusion in your list of major items to
be discussed among APA and the Purchasing Utilities:
o Survey of Dam and comparison with 1987 Survey
o APA's current program for routine inspections of the dam
o Rehabilitation of Power Tunnel Adit
o Environmental Management Plan
o List of Physically separated sites to be included in the
transfer, together with land and landrights data
o List of vehicles and off road equipment to be transferred
o Transmission Line Survey
A more comprehensive list of Technical and Miscellaneous Items is attached.
The list of environmental issues, and Health and Safety are prepared by Jim
Rogers and the list of Health and Safety issues, prepared by Mike Daniels, Mike
Schowen and Sterling Larson will follow.
Best Regards,
/s/ Fred R. Harty, Jr. BJT
Fred R. Harty, Jr.
Task Coordinator
Attachment
FRH:bjt
TECHNICAL AND MISCELLANEOUS ITEMS NOTED FOR FURTHER CONSIDERATION
DURING THE TRANSFER INSPECTIONS FOR THE
EKLUTNA HYDROELECTRIC PROJECT
(see also the separate lists covering:
o Environmental Items
o Safety and Health Items)
APA POSITION TRANSITION TEAM RESOLUTION
Remote Sites
o Possibilities for relocating or
discontinuing the use of the Reed
substation should be considered
due to the security problem.
o Ownership of the old Eklutna powerhouse
should be established with respect
to the transfer process.
o At the Palmer substation, the transformer APA has advised that MEA
should be checked for damage because of the preformed a detailed inspection
deformed skid. (letter of February 27, 1996)
o Grounds maintenance should be performed at APA will remove brush, weeds and logs
the Repeater Station. Also, the provisions (letter of February 27, 1996)
for future snow removal and winter access to the
MEA substation should be established with respect Future maintenance to be established
to the Repeater Station.
Eklutna Dam and Spillway APA will remove logs and debris (letter of February 27,
1996)
o The area upstream from the spillway is heavily
encumbered with floating logs and other debris.
This material should be removed.
51396.ATT - 5/13/96
o There is an area of subsidence at the APA will perform the survey (letter of February 27, 1996)
downstream edge of the dam crest, about two
thirds of the way between the right abutment
and the spillway structure. The subsidence is
on the order of 2 ft to 3 ft over an area that is
large enough to make this a gentle depression.
We were unable to find a notation of the
condition in previous reports. A survey of this
area and institution of a monitoring program is
suggested.
o A survey program is also suggested for the road APA will perform the survey (letter of February 27, 1996)
that leads from the main road to the right
abutment. This survey would determine if
there is a spot in the road which is lower than
the crest of the dam.
o A survey of the various dam monitoring APA will perform the survey (letter of February 27, 1996)
monuments should also be made and compared
with previous measurements. Other areas of
interest for a survey are described in the
detailed report.
o Some means should be provided for removal of water
which accumulates in the spillway outlet gate access
gallery. There was standing water in this gallery at
the time of the inspection.
51396.ATT - 5/13/96
o An area of standing water was noted downstream from
the toe of the dam toward the outlet of the spillway
channel. This condition was noted in previous reports
with the comment that it was not clear whether the
wet spot was related to the reservoir or originated
downstream. This area should continue to be observed
in future inspections, particularly when the area
between the two dams is dry.
o Brush and small trees were noted on the APA will remove vegetation (letter of February 27, 1996)
downstream embankment and abutments of the
dam. This vegetation should be removed.
Intake Gate Area
o The surface drainage should be improved around the
intake gate silo.
o It is suggested that this gate operating system
be renovated and updated.
o Cracks noted in the silo concrete at the level of
the gate operating system should be monitored to
determine if any changes are being experienced.
o The steel items such as ladders, platforms, gate
operator and gate operator supports should be cleaned
and painted.
51396.ATT - 5/13/96
o It is suggested that the provision of a permanent
power supply be considered for this structure.
o The access road was washed out at the time of APA has restored the road to its original condition (letter
the site visit. It is suggested that improvements of February 27, 1996)
be made to permit uninterruptible vehicle access
on this road, which serves the intake gate silo An upgrade has been suggested for consideration by the
and the Anchorage Water District diversion Purchasing Utilities
structure.
Gage House for Reservoir Water Level Monitoring
o The ownership of this gage house should be
verified with respect to the project transfer.
o The identity of the floating cable, noted during Repaired by USGS (letters of February 27, 1996 and
the inspection, should be established and any March 13, 1996)
necessary remedial action taken.
Adit to the Power Tunnel APA will only patch the holes at the power tunnel
access entrance (letter of February 27, 1996)
o Remedial measures should be taken to restore
access to the watertight bulkhead in the adit
and to prevent unauthorized entry into this area.
51396.ATT - 5/13/96
Surge Tank
o The area around the surge tank should be monitored for
erosion of surface material. Corrective measures should
be taken if necessary.
o The inside of the surge tank should be inspected when
the opportunity presents itself.
o The free turning operation of the wheels on the
wheeled gate should be verified to be sure that they
will function under load during an emergency gate closure
(previous closure operations are understood to have been
with no flow).
o The gate may need painting or other maintenance. There is no record of when the gate was last painted
(letter of March 13, 1996)
o A broken grounding strap needs to be repaired.
o Restrictions related to operation at high lake
level should be noted.
Tailrace Channel
o Obstructions caused by the presence of cables sticking
up on the embankment roadway should be addressed.
51396.ATT - 5/13/96
o Confirm or adjust the values of minimum Levels not confirmed per letter of March 13, 1996
tailwater level based on project datum:
20 ft elev - one unit
21 ft elev - two units
(It has been reported that all project elevations
following the 1964 earthquake are 2.6 ft. to 2.9
ft. lower than those shown on the drawings. If
sea level forms the basis for tailwater level, the
new tailwater, based on project datum, could be
higher when affected by high tides)
Powerhouse
o Acceptability of the sump oil separation method
should be reviewed.
o Redesign of the exhaust system should be APA will replace the batteries with a different type
considered to avoid the present situation in (letter of February 27, 1996)
which the battery room exhaust is ducted
through the main control panel. Also, the
potential for inadvertent passage of oil room
exhaust into the control room should be
reviewed.
o Rehabilitation of the butterfly valves should be
considered to correct leaking which has been reported
to be unfixable through normal seal adjustment.
51396.ATT - 5/13/96
o Greaseless wicket gate bearings should be
considered for installation on the turbines.
o A thin walled section of cooling water pipe, Two sections have been patched. APA will correct the last
noted in the Bureau of Reclamation Inspection section this year (letter of February 27, 1996)
Report, should be replaced.
o The cable trays presently have 1/4 inch asbestos
flexboard underneath the cables. Other arrangements
should be established so that this asbestos material
can be removed.
o The immobility of the transformers on their APA will add restraints (letter of February 27, 1996)
rails should be verified to prevent damaging
movement in the event of an earthquake.
o Consideration should be given to more
conventional distribution methods of supplying
power to the Government Camp.
EKLUTNA TO PALMER
TRANSMISSION LINE
o On Structure 8/7, a broken bell should be APA will be responding to these issues during the normal
replaced in the right insulator string maintenance program (letter of March 13, 1996)
o On Structure 10/5, two broken bells in the APA will be responding to these issues during the normal
center insulator string and one broken maintenance program (letter of March 13, 1996)
bell in each of the outside strings should
be replaced.
51396.ATT - 5/13/96
o Vibration on the center phase between APA will be responding to these issues during the normal
structures 7/1-7/2 should be addressed maintenance program (letter of March 13, 1996)
o Remedial measures or changes should be APA has no plans for any major work in this area
considered at three areas on the line that (letter of February 27, 1996)
are subject to damage, as described in the
detailed report (avalanche zone between 3/7
and 3/8, old Knik River bridge, and the
Matanuska River crossing between 9/3 and 10/3)
o The out of plumb condition of the insulator APA has no plans for any major work in this area
strings should be addressed at structures (letter of February 27, 1996)
8/7, 8/8, 9/1 and 9/2
o Excess brush and trees should be removed from APA has no plans for any major work in this area
the rights of way as described in the detailed (letter of February 27, 1996)
report
o Structure 10/4 should be made plumb APA has no plans for any major work in this area
(letter of February 27, 1996)
TRANSMISSION LINE FROM
EKLUTNA TO ANCHORAGE
o Deterioration of the cross arm at Structure 18 APA will be responding to these issues under the
should be addressed normal maintenance program (letter of March 13, 1996)
o Broken bells, as described in the detailed APA will be responding to these issues under the
report, should be replaced normal maintenance program (letter of March 13, 1996)
51396.ATT - 5/13/96
o Excess brush and trees should be monitored for APA will be responding to these issues under the
timely removal as described in the detailed normal maintenance program (letter of March 13, 1996)
report
MISCELLANEOUS APA will provide the original drawings. You should be
- ------------- aware that APA presently has a surveying contract under
way to make an as-built plan of the entire transmission line.
o Plan and profile of each transmission line
o Land and Land rights data for: This will be compiled as part of transition activities
(letter of March 13, 1996)
1. The power plant and associated structures
including the tailrace channel
2. The substations and switchyard
3. The transmission line rights-of-way and
access to the rights-of-way
4. Other properties to be transferred
o List of all outstanding contracts and This has been provided to Tim McConnel (and other purchasers)
commitments including informal agreements: as part of transition activities (letter of March 13, 1996)
For example, it is understood that APA has
an understanding that the Fish Hatchery may
use some storage areas in the Eklutna warehouse.
It is also understood that APA sometimes provides
road maintenance and snow removal services in the
park area. Such agreements and understandings
should be listed.
o List of vehicles and other on road and off road This will be compiled as part of transition activities
equipment (letter of March 13, 1996)
o List of all major items of spare parts and spare This will be compiled as part of transition activities
equipment (letter of March 13, 1996)
o List of physically separated sites that are to APA is collecting this and will provide this as
be included in the transfer, such as the power part of the transition process (letter of March 13, 1996)
plant itself, the USGS station house, the
repeaters station, storage yards, transmission
line and substations.
51396.ATT - 5/13/96
c:\1-Patty\Eklutna\Transpln\Exhibt-D.doc
EXHIBIT D
The Eklutna Asset List comprises:
1. Eklutna Project Personal Property in 8 pages
2. Eklutna Property Inventory, Major Equipment, in 7 pages
3. Eklutna Project Furniture Inventory in 4 Pages
The Eklutna Purchasers Asset Lists of Utility owned items on Eklutna Project
sites:
1. CEA Inventory Letter of May 22, 1996 in 2 pages
2. MEA Inventory Letter of April 1, 1996 in 2 pages
3. ML&P Inventory Letter of April 24, 1996 in 2 pages
TOTAL PAGES 25
Item APA
Number Item Description Serial No. QTY Location Condition Number
1 1966 Allis Chalmers Dozer 6606 1 ea Warehouse Fair 8410.6
2 1993 John Deere Dozer T045OGF795714 1 ea Warehouse Good 382
3 1994 Ford Dump Truck IFDXK84EXRVA26419 1 ea Warehouse Good 48761
4 1962 Studebaker Dump Truck 7E40A 1 ea Warehouse Fair 48766
5 1960 2-1/2 Ton Boom Truck 140285 1 ea Warehouse Fair 48768
6 1957 Caterpillar Motor Grader 8T21663 1 ea Warehouse Fair 48769
7 1987 Ford 555B Backhoe C771016 1 ea Warehouse Good 23
8 Thiokol Rangemaster 67B9370 1 ea Yard Fair 5122.1A
9 1988 Jeep Cherokee IJCML77IOJTI57056 1 ea Garage Good 48777
10 1989 Chevy Pickup 2GCEK2ZXKI 194266 1 ea Power Plant Good 48762
11 1988 Chevy Pickup IGCDK14H4JE124133 1 ea Power Plant Good 48776
12 1994 Chevy Pickup IGCEK14H2PE224566 1 ea Power Plant Good 48770
13 1994 Chevy I -Ton/Snow Plow IGDHK34K9PE563972 1 ea Garage Good 48758
14 1985 Dodge Pickup IB7HW14HXFS657165 1 ea Warehouse Fair 48765
15 1984 Dodge Line Truck 187KW34W2ES311402 1 ea Warehouse Fair 48767
16 Stihl Chainsaw 227850872 1 ea Warehouse Good 331
17 Stihl Chainsaw 227850894 1 ea Warehouse Good 332
18 Stihl Chainsaw 227850861 1 ea Warehouse Good 330
19 Stihl Chainsaw 227850901 1 ea Warehouse Good 333
20 Homelite Chainsaw 8LI4907AI 1 ea Warehouse Fair 116
21 Homelite Chainsaw HK2230297 1 ea Warehouse Fair 117
22 Homelite Chainsaw HK2190954 1 ea Warehouse Fair 118
23 Homelite Chainsaw 7E2772322 1 ea Warehouse Fair 6625.27
24 Onan-Generator 25C815072 1 ea Warehouse Fair 3375.9
25 Onan Generator 3375.8 1 ea Warehouse Fair 3375.8
26 Johnson Outboard Motor 1188798 1 ea Warehouse Fair 5055.1
27 Lawn Mower - Wheeler 228270 1 ea Warehouse Good 7
28 Lawn Mower - Toro T 236 1 ea Warehouse Fair N/A
29 Riding Lawn Mower - Sears 3264 1 ea Garage Fair 4445.5
30 Lawn Rake 60102 1 ea Warehouse Poor 945.1
31 Water Pump 1456266 1 ea Warehouse Fair 5940.4
32 Hydraulic Line Press 75L2286 1 ea Warehouse Fair 5770.1
33 Hydraulic Pump 2718809 1 ea Warehouse Fair N/A
34 Snow Blower - MTD 3146IOE000 1 ea Warehouse Good 381
35 Homelite Weed Eater HJ3350430 1 ea Warehouse Good 112
36 Lincoln Welder/Generator 3451173 1 ea Warehouse Fair 8920.2B
37 Thiokol Range Master 1 ea Yard Fair N/A
38 Capstan Hoist 280097 1 ea Warehouse Fair 3850.17
39 1985 Wisconsin Tilting Trailer IW91SC205F1008162 1 ea Yard Good N/A
40 Shaper Cincinnati 1 ea Machine Shop Good N/A
41 Turret Milling Machine 1011 505367 1 ea Machine Shop Good N/A
42 Lathe Model #957 1 ea Machine Shop Good N/A
43 Metal Cutting Band Saw Model 8C-W 6540581 1 ea Machine Shop Good N/A
44 Bench Grinder Model #508 1338 1 ea Machine Shop Good 3490.1
45 Lincoln Welder A320510 1 ea Machine Shop Good 8920.2
46 Pipe threader (Ridgid) 396385 1 ea Machine Shop Good 14
47 Black & Decker 10" Bench Saw 1 ea Machine Shop Good N/A
48 Hinsey Bench Grinder 210422 1 ea Machine Shop Fair N/A
49 14" Chop Saw 110037 9309 1 ea Machine Shop Good N/A
50 Cincinnati Drill Press 1 ea Machine Shop Good N/A
51 LeBlond 10' Lathe 1 ea Machine Shop Good N/A
52 Manley Hand Press 1 ea Machine Shop Good N/A
53 Miller CP-300 Welder 1 ea Machine Shop Good N/A
54 HotPoint Clothes Dryer 1 ea Machine Shop Fair N/A
55 Norge Clothes Washer 1 ea Machine Shop Fair 8865.2
56 Kleen-Flo Parts Washer 606284 1 ea Machine Shop Good N/A
57 Pyrotronics Fire Alarm System System 3 1 ea Machine Shop Good N/A
58 Radionics Security Alarm System 1 ea Machine Shop Good N/A
59 HomeMade Sand Blaster 1 ea Machine Shop Good N/A
60 National Champion Oil Furnace 541920 1 ea Machine Shop Fair 21
61 PMG Bearing Puller 1 ea Machine Shop Fair N/A
62 Jet Pump Profile for turning jet pump nozzles 1 ea Machine Shop Fair N/A
63 Oxygen & Acetylene Bottles, Torch & Cart 1 ea Machine Shop Good N/A
64 Vacuum Pump & Motor 1 ea Machine Shop Good N/A
65 2200 lb Portable Crane Hoist (OTC) 1 ea Generator Floor Good N/A
66 Puller 22007 1 ea Second Level Floor Good N/A
67 23 lb Weights for Tightwire readings 4 ea Second Level Floor Fair N/A
68 Portable Oil Press Pump, Oil Filtering System 1 ea Oil Room Good N/A
69 Aluminum Ladder for Draft Tube 1 ea Third Level Good N/A
70 Wicket Gate Stans 1 ea Third Level Fair N/A
71 30 for Hvd Jack 47353 6 ea Third Level Fair 5770.3
72 10 to Track Jack 2 ea Third Level Fair N/A
73 Screw Jacks 3 ea Third Level Fair N/A
74 60 ton Portable Hyd 3-in stroke 1 ea Third Level Good N/A
75 10,000 Pst Air Hyd Pump 1 ea Third Level Good N/A
76 20 ton Portable Hyd Ram 1-3/4 in stroke 1 ea Third Level Good N/A
77 20 ton Portable Hyd Ram 3 in stroke 1 ea Third Level Good N/A
78 Hand Portapower Pump 1 ea Third Level Good N/A
79 Portable Oil Furnace with Day Tank 1 ea Third Level Fair N/A
80 Assorted Hand Tools 1 ea Machine Shop OfficeFair N/A
81 Hand Tools 1 ea Machine Shop Fair N/A
82 Assorted Slings, Cables, Eye Bolts, Metric Wrenches, S Hook Generator Floor Good N/A
83 Deck Hatch Eyebolts, Shackles Generator Floor Good N/A
84 Push Button Cord for Stop Log Hoist Generator Floor Good N/A
85 Snugging Wrenches 1" drive sockets Second Level Fair N/A
86 Assorted Spanner Wrenches, Lifting Eye Bolt, Open End Wren Second Level Fair N/A
87 Hatch Lifting Eye Bolt Second Level Good N/A
88 Assorted Allen Wrenches, Open-end Wrenches Second Level Fair N/A
89 Spare Parts: Gov Lube Pump & PMG's Second Level Good N/A
90 Spare Parts: Flyball Prerun Tester Second Level Good N/A
91 lnnertube for Butterfly Valve Second Level Fair N/A
92 Turbine Nut Remover for Porta-Power Second Level Fair N/A
93 Turbine Nut Spanner Wrench, Manhole Door Wrench Third Level Fair N/A
94 1 in electric Impact Wrench 1 ea Third Level Good N/A
95 120V AC to 12V DC Light Transformer w/Drop Light 1 ea Third Level Good N/A
96 449 V electric heater 1 ea Third Level Fair N/A
97 Generator Rotor Floor-mount with Bolts 1 ea Third Level Good N/A
98 Generator Rotor Lifting Device 1 ea Third Level Good N/A
99 Runner Shaft Lifting Device 1 ea Third Level Good N/A
100 Floor-mount Hyd Press Rotors 1 ea Third Level Fair N/A
101 Partial Spools ACSR 8 ea Warehouse Good N/A
102 Full Spools ACSR 3 ea Warehouse Good N/A
103 X Braces 25 ea Warehouse Used N/A
104 1O" Suspension Insulators 500 ea Warehouse Used N/A
105 7 1/2" Phase Hangers 21 ea Warehouse Used N/A
106 8" Phase Hangers 64 ea Warehouse Used N/A
107 9 1/2" Phase Hangers 117 ea Warehouse Used N/A
108 11" Phase Hangers 21 ea Warehouse Used N/A
109 1O' Cross Arms 2 ea Warehouse Used N/A
110 25'Cross Arms 6 ea Warehouse Good N/A
111 Boxes Pole Toppers 11 ea Warehouse Good N/A
112 Boxes Aluminum Armor Rod 5 ea Warehouse Good N/A
113 Box Guy Guards 1 ea Warehouse Good N/A
114 Boxes Crossplates Anchors 2 ea Warehouse Good N/A
115 Guy Anchor Rods 24 ea Warehouse Good N/A
116 Vibration Dampers 15 ea Warehouse Used N/A
117 3 Bolt Guy Clamps 120 ea Warehouse Used N/A
118 4 Bolt Guy Clamps 45 ea Warehouse Used N/A
119 3/4" X 2 1/2" Cone Head Bolts 100 ea Warehouse Used N/A
120 Miscellaneous Lag Bolts 75 ea Warehouse Used N/A
121 Square Washers 5/8' Hole 600 ea Warehouse Used N/A
122 Square Washers 1/2" Hole 350 ea Warehouse Used N/A
123 3" X 3" Curved Washers 25 ea Warehouse Used N/A
124 1/2" Lock Washers 100 ea Warehouse Used N/A
125 5/8" Lock Washers 300 ea Warehouse Used N/A
126 3/4" Lock Washers 75 ea Warehouse Used N/A
127 7/8" Lock Washers 150 ea Warehouse Used N/A
128 5/8" Hex Palnuts 150 ea Warehouse Used N/A
129 1/2" Sqaure Lock Nuts 75 ea Warehouse Used N/A
130 5/8" Square Lock Nuts 250 ea Warehouse Used N/A
131 3/4" Square Lock Nuts 200 ea Warehouse Used N/A
132 7/8" Square Lock Nuts 25 ea Warehouse Used N/A
133 1/2" Square Nuts 75 ea Warehouse Used N/A
134 5/8" Square Nuts 250 ea Warehouse Used N/A
135 3/4" Square Nuts 200 ea Warehouse Used N/A
136 7/8" Square Nuts 100 ea Warehouse Used N/A
137 7/8" Square Nuts 100 ea Warehouse Used N/A
138 2" X 5/8" Bolts 50 ea Warehouse Used N/A
139 6" X 5/8" Bolts 300 ea Warehouse Used N/A
140 13" X 7/8" Boks 80 ea Warehouse Used N/A
141 11" X 5/8" Bolts 18 ea Warehouse Used N/A
142 13" X 7/8" Bolts 36 ea Warehouse Used N/A
143 Serving Sleeves 150 ea Warehouse Used N/A
144 Deadend Straps 48 ea Warehouse Used N/A
145 4 Section Pole Band Assemblies 12 ea Warehouse Used N/A
146 3 Section Pole Band Assemblies 22 ea Warehouse Used N/A
147 9" Extension Links 45 ea Warehouse Used N/A
148 3""U"Bolts 60 ea Warehouse Used N/A
149 Extended Parallel Groove Clamps 22 ea Warehouse Used N/A
150 Offset Guy Clamps 6 ea Warehouse Used N/A
151 3" X 10" Extension Links 90 ea Warehouse Used N/A
152 Aluminum ACSR "T" Connectors 10 ea Warehouse Used N/A
163 5" Chain Shackles 4 ea Warehouse Used N/A
154 Ball Eyes - Round 4 ea. Warehouse Used N/A
155 Hot Line Strain Clamps - Steel 2 ea Warehouse Used N/A
156 Yoke sets - double Strain 2 ea Warehouse Used N/A
157 3" Galvanized Staples I bx Warehouse Used N/A
158 15" X 7/8" Bolts 98 ea Warehouse Used N/A
159 17" X 7/8" Bolts 38 ea Warehouse Used N/A
160 21" X 7/8" Threaded Rod 44 ea Warehouse Used N/A
161 7" X 7/8" Threaded Rod 32 ea Warehouse Used N/A
162 9" X 3/4" Threaded Rod 10 ea Warehouse Used N/A
163 9" X 7/8" Threaded Rod 10 ea Warehouse Used N/A
164 9" X 1/2" Double Arming Bolts 64 ea Warehouse Used N/A
165 ACSR Spices 69 ea Warehouse Good N/A
166 Suspension Clamps 80 ea Warehouse Used NIA
167 Ball Hooks 50 ea Warehouse Used N/A
168 Ball Clevises 14 ea Warehouse Used N/A
169 Oval Ball Eyes 50 ea Warehouse Used N/A
170 Socket Eyes 200 ea Warehouse Used N/A
171 Twisted Shackles 100 ea Warehouse Used N/A
172 "Y" Clevis Eyes 3 ea Warehouse Used N/A
173 Turn Buckles 8 ea Warehouse Used N/A
174 Rod Ground Clamps 10 ea Warehouse Used N/A
175 Straight Line Strain Clamps - Aluminum 5 ea Warehouse Used N/A
176 Guy Hooks 32 ea Warehouse Used N/A
177 Cross Arm Plates 180 ea Warehouse Used N/A
178 Monitor, TV 19" T6GOI 1789 1 ea Office Good 4
179 Recorder, VCR B6500616 1 ea Office Good 5
180 Monitor, Service 2787 1 ea Warehouse Good 9
181 Weedeater 1216 1 ea Warehouse Good 8
182 Crane, Mobile Lifting 0612POO017 1 ea Warehouse Good 102
183 Video Cam 8MM 215700 1 ea Office Good 303
184 Microwave Oven 1 ea Office Good 305
185 Radio Transceiver Portable 251581 1 ea Office Good 321
186 Radio Transceiver Portable 251733 1 ea Office Good 322
187 Radio Transceiver Portable 251730 1 ea Office Good 323
188 Radio Transceiver Portable 251732 1 ea Office Good 324
189 Radio Mobile w/charger C17002 1 ea Office Good 325
190 Radio Mobile w/charger C20041 1 ea Office Good 326
191 Radio Mobile w/charger C3 034 1 ea Office Good 327
192 Radio Hand Held Portable w/charger EPU 4142A 223931 1 ea Office Good 335
193 Radio Hand Held Portable EPU-4142A-225904 1 ea Office Good 336
194 Canon Telefax WBLO9376 1 ea Office Good 338
195 Copier, Monroe Office Copier 1 ea Office Good 383
196 Binoculars 1 ea Office Good 560.5
197 Blueprint Machine 7394 1 ea Garage Good 680.2
198 Camera 35 MM 1 ea Office Good 1155.2
199 Freezer, Upright 1 ea Office Good 2800.4
200 Freezer, Chest 42MO551WW-1053528 1 ea Office Good 3260
201 Radio Transceiver, Walki-Talkie 738160847 1 ea Office Good 6036.36
202 Radio Transceiver, Walki-Talkie 738161047 1 ea Good 6036.38
203 Radio, Transceiver, Walki-Talkie 841377501 1 ea Good 6036.47
204 Radio, Transceiver, Walki-Talkie 843225402 1 ea Good 6036.48
205 Table Radial-Arm Saw 107112 1 ea Good 6625.14
206 Table Saw KSSSFN-349 1 ea Good 6625.23
207 Chain Saw 200530067 1 ea Warehouse Good 6625.25
208 Chain Saw 35431879 1 ea Warehouse Good 6625.26A
209 BandSaw 80754 1 ea Warehouse Good 6625.29
210 Trlr Diesel Tank AV-255119 1 ea Good 8450.8
211 Welder & Generator Combo AC-225-S 1 ea Warehouse 8920.3A
212 Welder High Frequency 8326 1 ea Warehouse Good 8920.6
213 Wrench, Electric Impact ASL 13941 1 ea Warehouse Good 89902
214
215
216
EKLUTNA PROPERTY INVENTORY
TRANSFORMER ROOM
2-EA POWER TRANSFORMERS
- Tierney Electrical Manufacturing Co.
- Enclosure Type-1
- KVA - 300
- PH=3
- H2 - 60
- Pri. Volts - 7200
- Sec. Volts - 408/277
- Ser. # 188-6 (SS Buss #2)
- Ser. # 188-5 (SS Buss #1)
2-EA STATION SERVICE DISCONNECT
- Elseco Switchgear Electric Service Engineering Co.
- DS 115 & DS 215
2-EA SINGLE-PHASE TRANSFORMER (Lightening)
- 60 cy 50 KVA
- Volts 480 to 120/240
- Class A-A
- Type DB
- Ser. #63033 (KCD)
- Ser. #63034 (KCC)
4-EA AIR CURRENT BREAKER
- GE
- Type AM - 13.8-250-1
- KV - 13. 8
- Amps - 2000
- Interrupting KVA - 22,000
- Ser. #376A355-25-4 (112)
- Ser. #376A355-25-1 (212)
- Ser. #376A355-25-5 (118)
- Ser. #376A355-25-3 (218)
GENERATOR ROOM
2-EA SUMP PUMP MOTOR
- GE
- Model 5K324XA11A
- H.P. 7.5 - Nema Class B - Type K - Code G - Frame - 324PH - 60 cy-3
PH - Volts - 220/440
- FL Speed @ 60 cy - 1160
- FL AmP @ 60 cy - 21.1/10.6
- SER. # RHJ6877121 (#1)
- SER. # SSSFJ6793973
2 -EA TRANSFORMER
- GE - Dry Type - Indoor - 3-phase - 60 Hz - Class AA
- Model # 9T26G3106
- kVA - 200
- Hv - 6900
- LV - 260
- SER. # DX
2-EA REGULATOR
- GE
- 1C-7932
- CAT - O55O2XO798701
- Elem - 228B9856
- ASM - 228B9864
- Outl. - 228B9852
2-EA GENERATOR
1-EA OVERHEAD CRANE
- Ederer
- 40-ton
BATTERY ROOM
1 -EA UPS
- Best Power Systems
1-EA EXTERNAL BYPASS SW
- Best
- BYE1OO-MBB-1
- Volts - 277
- Cont. AMPS - 80
- Max Amps - 100
- 1 Ph 60 Hz
2-EA AIR COMP. MOTOR
- Peerless electric Co.
- 15 HP
- 1450/1750 RPM
- 40(degree)C
- 3 pH
- 208-220/440 Volts
- 50/60 Cy
- 38/19 Amps
- Frame - P326
- SER. #LD11287 (#2)
- SER. #LD12306 (#2)
2 EA BATTERY CHARGER
-Exide -Model SCRF 130-3-100L -Input volts - 480 AC -Input Amps-28
-pH 3 60 Hz -DC Amps 100 DC Volts 130
-Cell No. 60
-Type Cell - Lead
-(A) SER. # 85256-1/7150-1 MG
-(B) SER. # 85256-1/7150-2 MG
60-EA BATTERIES
- Exide
- Norm.Cap. - 320 Amp HR
- CAT # 74431
1 -EA WATER STILL
-Barnstead
-SER. # 54839
-PH 1
-Volts 110
-Amps 12
-Watts 1300
-60 Cy
-Cap. Gal./Hr - 1/2
-Mfg. Cat. No. EL 1/2
OIL ROOM
l-EA OIL PUMP MOTOR
-GE
-Model SK225D70
-HP 3
-Type K
-Code J
-Fr. 225
-PH 3
-Volts 220/440
-60 Cy
-FL Amps 8.45/4.23
-FL Speed 1725
-#ZK17054
GOVERNOR CABINET
2-EA INDUCTION MOTOR
- Fairbank Morse
- 10 HP
- 3 PH
- 60 Cy - 220/440 Volts - 28/14 Amps - S.F. 1.15 - Code G - Type QZK-
FR RS326 - # F208018 (U-1) - # F208019 (U-2)
TURBINE ROOM
2-EA AC LUBE OIL PUMP MOTOR
-BROWN & SHARPE MFG. CO.
-3 PH 60 cy
-Type PA
-FR: H56SP
-HP 1/2
-Volts - 208-220/440
-Amps - l.6/.8
- RPM - 1725/1425
- SER. # CZ4726 (U-1)
- SER. # AS9225 (U-2)
- SER. # AS9213 (Spare)
2-EA DC LUBE OIL PUMP MOTOR
- Brown & Sharpe Mfg . Co.
- Type - DM
- FR: HJ6SSP
- HP- 112
- Volts 125
- AMPS 4.1
- RPM 1725
- SER. # AW2985 (U-2)
- SER. # AW2986 (U-1)
- SER. # DP5299 (Spare)
2-EA GROUNDING TRANSFORMER
JET PUMP ROOM
2-EA LIMITORQUE
- Limitorque Corp.
- SMC - 041
- Order # 10967501
- Duty - 5 min.
-SER. # M058356 (U-2)
-SER. # M058357 (U-1)
2-EA DC MOTOR - RELIANCE
-Type - T
-HP - 33 -Arm. volts - 125 -AMPS - 3.6 -Field volts - 125 - AMP - .4-
FR - FY56 - RPM - 1900 - Duty - 5 min
- ID # W7800783M-RN (U-1)
- ID # W7800783M-RN (U-2)
WATER ROOM
1-EA FIRE WATER PUMP MOTOR
- Fairbanks Morse
- HP 30 - 3-ph - 60 cy
- RPM - 3505 - Volts - 220/440 - AMPS - 72/36 - sf - l.l5 - Code - F-
Type - Q2K - FR - RW3645 - SER. # F230825
CONTROL ROOM
3-EA AIR CIRCUIT BREAKER
-Roller-Smith
- Type - RS25A
- Volts - 600
- 60 Cy
- Frame - 600 AMPS
- Int. AMP - 25,000
- Overload AMP - 400 AMP
- SER. # 39165 Al (022)
- SER. # 39165 A2 (033)
- SER. # 39165 B1 (012)
BUTTERFLY CONTROL CABINETS
2-EA PUMP MOTOR
- Reliance Electric
- Type - ML
- FR - 284
- HP - 5
- RMP - 1200
- Volts - 230/460
- AMPS - 26/8
- SER. # 85707 (U-2)
- SER. # 8S706 (U-1)
TURBINE ROOM
2-EA JACKING PUMP MOTOR
- Oerlikon
- RPM - 645
- Volts - 460
- HP - 1.8
- 3 PH
- SER. # 878000L01.2 (U-2)
- SER. # 878000L01.l (U-1)
SWITCHYARD
2-EA TRANSFORMERS
- Hevi-Duty Electric - KVA 20000 - Class 0A - Rise 65(degree)C - KVA
25000 Class FA - Rise 65(degree)C - HVV - 115000 GRD Y - LV - 6600
DELTA
-3 PH
-Impedance 10.74 cy at 20000 kVA
-YR. of MFG - 1995
- SER. # GM 931037 (KW2A)
- SER. # GM 931036 (KW1A)
MACHINE SHOP
l-EA TRANSFORMER
- Dry Type
- 3 PH - High Voltage - 480 - Low Voltage - 208y/l20 - 60 Hz - CRT
#223-3234
- kVA - 75
- SER. # J8201-A
ROOF
2-EA POWER CIRCUIT BREAKERS
- ABB - Type - 121 PA 40-12B - Max Volts - 121 kV - Short Circuit
Current - 40KA - Freq - 60 Hz - Cont. Current - 1200 AMPS -
Interrupting Time - 3 cy - SER. # 000901-02 (462) - SER. # 000901-01
(362)
Item APA
Number Item Description Serial No. QTY Location Condition Number
- -----------------------------------------------------------------------------------------------------------------------------------
1 Metal Desks 2 ea Bob's Office Fair N/A
2 Chairs 3 ea Bob's Office Worn N/A
3 Van Seat 1 ea Bob's Office N/A N/A
4 File Cabinet 1 ea Bob's Office Fair N/A
5 Metal Desks 2 ea Bill's Office Fair N/A
6 Storage Cabinets 1 ea Bill's Office Fair N/A
7 Tables 2 ea Control Room Good N/A
8 Chairs 2 ea Control Room Good N/A
9 Metal Desk 1 ea Control Room Good N/A
10 File Cabinet 2 ea Control Room Fair N/A
11 Storage Cabinet 1 ea Control Room Fair N/A
12 Storage Cabinet 3 ea Transformer Room Fair N/A
13 File Cabinet 5 ea Transformer Room Fair N/A
14 Shelf Units 4 ea Transformer Room Fair N/A
15 Blueprint Storage Cabinets 5 ea Transformer Room Fair N/A
16 Tables 2 ea Transformer Room Fair N/A
17 Roll-out Storage Unit 1 ea Transformer Room Fair N/A
18 Metal Desk 1 ea Transformer Room Fair N/A
19 Blueprint Storage Rack 1 ea Transformer Room Good N/A
20 Stool 1 ea Transformer Room Fair N/A
21 Roll-out Stand 1 ea Transformer Room Fair N/A
22 Shelving Units 2 ea Powerhouse Basement Fair N/A
23 Chair 1 ea Powerhouse Governor Level Fair N/A
24 Work Bench 1 ea Powerhouse Governor Level Poor N/A
25 Storage Cabinet 1 ea Powerhouse Governor Level Fair N/A
26 Shelf Unit 1 ea Powerhouse Governor Level Fair N/A
27 Locker 1 ea Powerhouse Governor Level Fair N/A
28 Locker 14 ea Powerhouse High Bay Fair N/A
29 Storage Cabinet 1 ea Powerhouse High Bay Fair N/A
30 Display Cabinet 1 ea Vestibule Good N/A
31 Work Bench 1 ea Machine Shop Poor N/A
32 Multiple Drawer Storage 4 ea Machine Shop Fair N/A
33 Storage Cabinets 4 ea Machine Shop Fair N/A
34 Storage Bins 1 ea Machine Shop Fair N/A
35 Flammable Storage Cabinets 2 ea Machine Shop Good N/A
36 File Cabinets 13 ea Office Good N/A
37 Storage Cabinets 2 ea Office Good N/A
38 Blueprint Storage Cabinets 10 ea Office Good N/A
39 Bookcases 9 ea Office Good N/A
40 Roll-out Shelf Unit 1 ea Office Good N/A
41 Tables 9 ea Office Good N/A
42 Metal Desks 3 ea Office Good N/A
43 Crendenza 1 ea Office Good N/A
44 Telephone tables 2 ea Office Fair N/A
45 Television Stand 1 ea Office Good N/A
46 Computer Center 1 ea Office Good N/A
47 Shelf Unit 1 ea Office Good N/A
48 Work Bench 1 ea Office Poor N/A
49 Stool 1 ea Office Fair N/A
50 Step Stool 1 ea Office Fair N/A
51 Safe 1 ea Office Fair N/A
52 Chairs 14 ea Office Fair N/A
53 Metal Desk 1 ea Garage Fair N/A
54 Bookcases 1 ea Garage Fair N/A
55 Chair 1 ea Garage Fair N/A
56 Fie Cabinet 1 ea Garage Fair N/A
57 Flammable Storage Cabinet 1 ea Garage Good N/A
58 Work Bench 1 ea Garage Poor N/A
59 Multiple Drawer Storage Cabinet 3 ea Garage Fair N/A
60 Shelving Units 4 ea Garage Fair N/A
61 Storage Cabinet 1 ea Garage Fair N/A
62 Metal Shelving Units 60 ea Warehouse Fair N/A
63 Metal circular Shelf Bin 1 ea Warehouse Fair N/A
64 Storage Cabinet 1 ea Warehouse Fair N/A
65 Flammable Storage Cabinet 2 ea Warehouse Fair N/A
66 Tables 4 ea Warehouse Fair N/A
67 Drafting Tables 2 ea Warehouse Fair N/A
66 File Cabinet 1 ea Warehouse Good N/A
69 Chairs 3 ea Warehouse Fair N/A
70 Metal Desks 1 ea Warehouse Fair N/A
71 Wood Storage Bin Unit 2 ea Warehouse Fair N/A
72 N/A
73 Zenith 386-25 Computer ZBV-3629-GK 1 ea Office Good 83
74 IBM 286 Computer 5170 1 ea Warehouse Poor N/A
75 ADS 486 DX66 9405133001 1 ea Office Good 339
76 IBM 8088 5150 1 ea Warehouse Good 310
77 Zenith 386- Lap Top ZTC3034-MO 1 ea Office Good N/A
78 COMPUADD 386 516403 1 ea Office Good 254
79 Zenith ZCM-1490-Z 941NCO368NOM 1 ea Warehouse Good N/A
80 Zenith ZCM- I 490-Z 944ND0164NOM 1 ea Warehouse Good N/A
81 ADS RE 1450 US9405133002 1 ea Office Good N/A
82 IBM 478117 1 ea Warehouse Good N/A
83 Okidata 93 DM Printer 10333294 1 ea Office Good 311
84 Epson FX1050 Printer OE11020765 1 ea Warehouse Good N/A
85 Citizen Premier 35 Printer 6XI25215 1 ea Warehouse Good 308
86 HP LazerJet IIIP FANB327377 1 ea Office Good 179
The following is an inventory of Chugach owned equipment at the Anchorage
Substation:
- - One (1) 115kV circuit breaker, Westinghouse
Breaker #2400
- - Four (4) 115kV capacitor voltage transformers, Trench Electric
Each transformer is mounted on a steel support structure
CEA #'s PT 125
PT 126
PT 127
PT 128
- - Two (2) 115kV disconnect switches, Royal/Powerdyne
Mounted on wood pole structure
Switch #'s S2901 and S2801
- - Three guyed poles terminating 115kV line from University Substation
- - Three guyed poles terminating 115kV line from Eklutna Power Plant
- - Satellite receiver antenna, Truetime
Mounted on wood pole adjacent control building
The following equipment is located inside the control building:
- - One (1) RTU cabinet
- - One (1) slip-link cabinet
- - One (1) Relay panel containing relays, switches, meters, and satellite
clock receiver Relay panel designation: "CEA 115kV Line to University"
- - One (1) AC distribution panel and meterbase with meter
Panel designation: Panel DHD
PAGE 2 OF 2
Chugach also owns the following equipment at the Eklutna Generation Plant:
- - One (1) Harris-Westronic D-20 SCADA Remote Terminal Unit (RTU) and a
slip link cabinet mounted on the adjacent wall. This equipment is
located downstairs below the control room in approximate vicinity of
the State of Alaska microwave equipment.
Sincerely, Concur:
/s/ Jim K. Topolski
Jim K. Topolski /s/ Michael V. Dillon
Manager, Land Services Michael V. Dillon
General Foreman, APA
April 1, 1996
Mr. Jim Hall, Projects Manager
P.O. Box 2929
Palmer, AK 99645
Dear Jim:
The following is the result of our area inventory on March 28, 1996:
On this date Jim Hall, Matanuska Electric Association (MEA) and Michael V.
Dillon, Alaska Power Administration (APA) toured the listed facilities.
Ownership of various equipment at these facilities was established and mutually
agreed upon. In some cases it is better to indicate by exception the equipment
owned by one or the other organization.
PALMER SUBSTATION
All APA owned except: Breaker B627 - MEA
Station Service Transformer 3237 - MEA
DOW TAP
Disconnect Switch #365 - APA
Disconnect Switch #371 - MEA
EKLUTNA POWER PLANT
All APA except: RTU - MEA
4 ea 833 kVA Single Phase 6600-7200 Transformers- MEA
3 installed (Camp Line) - MEA
1 Spare - MEA
REED SUBSTATION
All MEA except: High Side Dead End - APA
781 Disc SW - APA
760 GND SW - APA
115 kV Fuses - APA
Property and fence - APA
PIPPLE TAP
MEA - RTU house and all contents including the DC supply for
the switch motor operators
Take Off Structure
APA - 561 Disc SW
560 GND SW
571 Disc SW
570 GND SW
Motor Operators for 561 and 571
Dead End Structures
Property and fence
BRIGGS TAP
All MEA except: 1271 Disc SW less motor operator- APA
1261 Disc SW manual Op only- APA
Property and fence- APA
CEA: Power Pot 115 kV 50 kVA
Sincerely,
/s/ Michael V. Dillon
Michael V. Dillon
General Foreman
cc: Nick French, APA
Tim McConnell, AML&P
CONCUR: CONCUR:
/s/ Michael V. Dillon 4-1-96 /s/ James D. Hall 4-1-96
Michael V. Dillon Date Jim Hall Date
General Foreman Projects Manager
ML&P Inventory of Property at Eklutna
April 24, 1996
ANCHORAGE SUBSTATION YARD:
o Two (2) pilot wire protection cabinets, Lloyd Controls
o One (1) three-phase 115 kV oil circuit breaker, type V,Allis Chalmers,
Breaker #1162
o One (1) Switching structure and attached switches and insulators
o Switches
One (1) ABS 1163
One (1) ABS 1161
One (1) GND Switch 1160
One (1) By Pass Switch 1169
o Three (3) Potential transformers, three-phase, low side
o Six (6) line poles (dead end) and insulators
ANCHORAGE SUBSTATION CONTROL BUILDING:
o One (1) Center panel left side Quantum Watt Hour Meter #84878233, KVA &
KVAR inand-out
o Center panel right side ML&P
Three (3) Amp Meter
Two (2) Volt Meter
One (1) Synch Scope and Control Switches
o ML&P RTU relays for APA South line:
Two (2) phase zone timers
One (1) KD11 (phase-to-ground)
ANCHORAGE SUBSTATION CONTROL BUILDING (continued):
o Panel 6R: Relays for APA south line:
Two (2) phase zone timers
One (1) Inst. overcurrent relay
One (1) pilot wire relay
o Panel 9R:
Two (2) Timers
One (1) Instantaneous fault Detection Three (3) Synch Check Relays One
(1) Pilot Wire Relay One (1) KD 10 relay Two (2) Phase zone timers One
(1) Instantaneous fault detector Three (3) Synch check relays
o Back Wall
One (1) 19" Rack
One (1) Granger Radio Equipment
o One (1) ML&P Padmounted Transformer #5217 7200V/120/240V
o One (1) ML&P Station Service Meter
Miscellaneous Antennas on pole adjacent to control building
EKLUTNA PLANT:
o One (1) ML&P RTU
o Dunstan Controller and computer equipment for AGC/SCADA
As inventoried on April 24, 1996, by:
/s/ Tim McConnell /s/ Michael V. Dillon
Timothy F. McConnell Michael V. Dillon
Manager, Power Management, ML&P Eklutna General Foreman, APA
EXHIBIT E
Eklutna Purchasers
Manner of Acting, Functional Responsibilities, and Staffing
PREAMBLE: The following is the general delineation of responsibilities for the
Eklutna Project under ownership and operation of the Eklutna Purchasers and will
provide for efficient management during normal and contingency operation. The
Eklutna Purchasers expect these responsibilities will normally be carried out by
the utility so assigned in this Exhibit F. Any Purchaser desiring to contract
out or transfer between Eklutna Purchasers the performance of its
responsibilities as designated in this Exhibit E shall first obtain approval for
the change from APA and an operating committee (herein later defined as the
Eklutna Operating Committee) which will be established prior to the Transition
Date. The Parties intend to execute detailed transition agreements prior to the
Transition Date. (A) Manner of Acting.
(1) Transition Period. A transition period commencing on the Transition
Date and concluding on the Transaction Date is anticipated to enable
the Eklutna Purchasers to become familiar with the skills and work load
necessary for prudent operation of the Eklutna Project. During that
time, the current staff, now employed by APA, who may be offered
employment by the Eklutna Purchasers and who may accept such offers
will serve in the capacities described below, and the costs associated
with their work on the Eklutna Project shall be paid by the Eklutna
Purchasers in proportion to their respective Eklutna Project shares.
Should those offered employment choose not to remain, their function(s)
shall continue to be performed by the Purchasing Utility(s) responsible
for those functions as that Utility determines and with the approval of
the Eklutna Operating Committee (EOC).
(2) Post Transaction Date Period. The Eklutna Purchasers agree that unless
modified by the double majority voting provisions set forth in Section
(A)(3) below, division of responsibilities set forth in this Exhibit E
will form the basis for operations subsequent to the Transaction Date.
(3) Eklutna Operating Committee (EOC). The EOC consisting of one
representative from each of CEA, MEA, and ML&P shall be formed for the
management of the Eklutna Project. The EOC shall manage the Eklutna
Project as authorized by APA and as agreed to by the Parties,
commencing on the Transition Date. The EOC shall meet at least
quarterly or more often at the request of any member with the first
meeting to be held not later than June 30, 1996. The Chairman of the
EOC shall be the ML&P representative until the end of the calendar year
1997. The Chairmanship thereafter shall rotate among the Eklutna
Purchasers at the first meeting of each calendar year in the following
order: CEA, MEA, and ML&P. Decisions of the EOC will be by double
majority (a vote of two of the three Eklutna Purchasers whose shares
total at least 51% of the Eklutna Project shares) unless otherwise
agreed to by the Eklutna Purchasers in the Ownership and Operating
Agreement to be executed by and among the Eklutna Purchasers not later
than one year prior to the Transaction Date or at such time as
otherwise agreed to by the Eklutna Purchasers. During the Transition
Period, decisions by the EOC will be advisory in nature to APA unless
specific authority is granted to the EOC by APA under mutually
agreeable terms.
(4) Responsibilities of the EOC. Responsibilities of the EOC shall include:
(a) Prompt and Effective Oversight.The prompt and effective attention
of the EOC shall be given to major maintenance and operating
concerns or other conditions interfering with the safe and
efficient operation of the Eklutna Project.
(b) The EOC shall ensure preparation of:
(i) An Eklutna Project Budget;
(ii)An Eklutna Project Status Report for distribution to each
Eklutna Purchaser (and to APA prior to the Transaction Date)
that will include monthly summaries, by each Eklutna
Purchaser, of Eklutna Project energy, capacity, and wheeling
schedules (to include losses and inadvertent power flows);
(iii) A monthly revenue report;
(iv)Reliability and scheduling occurrences causing significant
power quality or scheduling deviations to the Eklutna
Purchasers;
(v) Status report of EOC action items;
(vi)An annual energy allocation for each of the EklutnaPurchasers
prior to each water year; and
(vii) Notification of any known limiting factors through the
following quarter that would constrain any capacity or energy
(including any transmission constraints).
(B) Functional Responsibilities. Duties and responsibilities may be
revised and clarified under the terms of the Ownership and Operating
Agreement to be executed prior to the Transaction Date or by action of
the EOC. The functional responsibilities for the administration,
operation, and maintenance of the Eklutna Project are as follows:
(1) Operation of the Eklutna Plant and Switchyard. MEA will operate the
Eklutna Plant and Switchyard. CEA and ML&P will provide advice and
assistance to MEA as requested by MEA or the EOC. The operator's
duties, to the extent authorized by the Eklutna Project operating
budget or as otherwise funded shall include:
(a) Providing on-site personnel as required to meet the needs of
the Eklutna Project as determined by the EOC and the Eklutna
Project operating budget;
(b) Bringing to the attention of the Eklutna Project Maintenance
Superintendent or the EOC required Eklutna Project work
essential to the safe and prudent operation of the Plant and
Switchyard; and
(c) Coordinating the daily activities pursuant to these
responsibilities with the ML&P Dispatch Center. The ML&P
Dispatch Center shall have supervisory control over all
switching functions and generator loading.
(2) Maintenance of the Eklutna Plant and Switchyard. ML&P will maintain the
Plant and Switchyard. ML&P's general duties, to the extent authorized by
the Eklutna Project operating budget or as otherwise funded shall include:
(a) Maintaining the Plant and Switchyard, including SCADA and
communication equipment, to meet the needs of the Eklutna
Purchasers as determined by the EOC and the Eklutna
operating budget; and
(b) Providing a qualified and designated Eklutna Project
Maintenance Superintendent who shall be responsible for:
(i) Developing a daily maintenance schedule for the Eklutna
Plant in coordination with the operating utility's
management, and as approved by the EOC;
(ii)Developing and implementing the preventive maintenance plans
for the Eklutna Project as approved by APA and the EOC; and
(iii)Overseeing, on behalf of the EOC, all Eklutna Project
maintenance in progress, with authority to suspend or modify
such work as required to comply with the schedules and plans
approved by APA and the EOC;
(iv)Bringing to the attention of the EOC required Eklutna Project
work essential to the safe and prudent operation and
maintenance of the Plant and Switchyard and performing or
causing to be performed such required Eklutna Project work;
(v) Preparation of preliminary annual budget estimates for the
Eklutna Project for submittal to MEA; and
(vi)Other Eklutna Project duties as assigned by ML&P pursuant to
the above responsibilities, and with the concurrence of the
EOC.
(3) Dispatch of the Eklutna Project. ML&P will dispatch the Eklutna
Project. ML&P's general duties, to the extent authorized by the Eklutna
Project operating budget or as otherwise funded shall include:
(a) Scheduling and dispatching plant capacity and energy to meet
the needs of the Eklutna Purchasers in accordance with
procedures established by the EOC, and under the ML&P
automatic generation control (AGC) system. This will include
the collection of SCADA data and other information
sufficient to record all wheeling over Eklutna Project
transmission lines; and
(b) Directing and controlling all switching, tagging and
clearance activities for the Eklutna Project; and
(c) Honoring each Eklutna Purchaser's scheduling requests to the
extent possible within the operating guidelines established
by the EOC.
(4) Transmission Line and Substation Operation, Maintenance, and Repair.
(a) Facilities. As directed by the EOC and within the limitations of
the Eklutna Project operating budget, CEA, ML&P, and MEA will be
responsible for the operation, maintenance, and repair of the
transmission segments and substations as follows: (i) CEA--for the
dual circuits on steel towers from Fossil Creek to the tap behind
the
Totem Theater in accordance with its May 1, 1980, agreement
with APA; (ii)ML&P--for the tap and lines from the above CEA
maintained circuit to the Anchorage
Substation, and the Anchorage Substation; and
(iii) MEA--for all remaining Eklutna Project transmission lines,
the Palmer and Reed Substations, and the Wasilla radio relay
site.
(iv)All costs for construction, operation, or maintenance of taps
and facilities owned individually by ML&P, CEA, and MEA will
be borne by that respective utility and not considered an
Eklutna Project cost.
(b) Maintenance Activities. Transmission line and substation
maintenance shall be performed in accordance with the plans
approved by the EOC. As directed by the EOC and within the
limitations of the Eklutna Project operating budget, the
daily activities pursuant to these responsibilities shall be
coordinated with the Eklutna Project Dispatcher in
accordance with procedures approved by the EOC. General
duties, to the extent authorized by the Eklutna Project
operating budget or as otherwise funded shall include:
(i) Maintaining Eklutna Project transmission lines and Eklutna
Project substations so as to meet the needs of the Eklutna
Purchasers; and
(ii)Bringing to the attention of the EOC required Eklutna Project
work essential to the safe and prudent operation and
maintenance of the Eklutna Project transmission lines and
Eklutna Project substation equipment, and performing or
causing to be performed such required Eklutna Project work to
the extent existing obligations require or funds are made
available for such work.
(5) Dam Maintenance and Inspections. As directed by the EOC and within the
limitations of the Eklutna Project operating budget, CEA is responsible
for advising the EOC on dam and waterway maintenance to include
penstock, tailrace, and embankments, for ensuring required safety
inspections are completed as may be prudent or required, and for
bringing to the attention of the EOC such required Eklutna Project work
on and along the waterways necessary to ensure safe and efficient
operation of the Eklutna Project. The daily activities pursuant to
these responsibilities shall be coordinated with the Eklutna Project
Maintenance Superintendent and the Eklutna Project Dispatcher.
(6) Environmental Regulatory Compliance. CEA is responsible for advising
the EOC on required procedures, inspections, and other actions required
to ensure compliance with environmental mandates. General duties shall
include periodic inspection of Eklutna Project related operations and
review and coordination with APA of Eklutna Project environmental
requirements.
(7) Fleet Maintenance. MEA has the responsibility for fleet maintenance,
and shall take title to the titled vehicles subject to the rights of
the other Eklutna Purchasers on the Transaction Date. The daily
activities pursuant to these responsibilities shall be coordinated with
the Eklutna Project Maintenance Superintendent.
(8) Annual Budgeting, Billing, and Accounting. MEA will prepare the annual
budget estimates; customary financial reports; billings for Eklutna
Project Power, wheeling, and other benefits; other reports now being
accomplished by the APA administrative staff at the Eklutna Plant; and
other tasks as may be requested by the EOC. The Eklutna Project
Maintenance Superintendent will provide preliminary Eklutna Project
cost estimates for the annual budget to MEA to begin the annual budget
process. MEA will also be responsible for billing the Eklutna
Purchasers for all advanced costs and for payment of same, subject to
cash management procedures established by the EOC. Each utility shall
submit its requested reimbursement items to MEA for payment on a
monthly basis. During the transition period, APA will calculate billing
per the Power Sales Contract, and will submit a single combined monthly
bill to the Eklutna Purchasers.
(9) Purchasing. Individual Eklutna Project invoices for tools, equipment,
supplies, and contract services up to $2,000 may be approved by each
utility pursuant to its responsibilities as described herein, but may
not exceed a quarterly limit as prescribed by the EOC in its annual
operating budget. All contracts or payment of invoices for more than
$2,000 will normally require EOC approval, but this is not intended to
constrain or delay necessary purchases to meet an emergency.
(10) Right-of-Way Authority. Right-of-way authority for third party
requests will remain the responsibility of APA until such time as
it is transferred to the Eklutna Purchasers.
(C) Staffing.
Beginning on the Transition Date, the Eklutna Purchasers anticipate the
following APA employees shall, effective on the Transition Date, become
employees of the utilities as follows.
Planned Eklutna Project Staff Assignments For The Transition Period:
Mike Dillon Eklutna Project Maintenance Superintendent to ML&P
Amerilis Foster Administrative Assistant to MEA
Bill Murphy Maintenance Mechanic to MEA
Bob Plumley Plant Mechanic to MEA
John Rivera Plant Electrician to MEA
Terms and conditions of employment shall be developed as soon as
practicable to enable a smooth transition to operation of the Eklutna
Project by the Eklutna Purchasers.