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Alaska RailbeltTransco
A Progress Report by the Railbelt Utilities
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Progress Since
Last Update
Category
Item
Status
Govemance
Utility Representation on board, voting procedures, number and qualifications of independent
tentative
board members dispute resolution
agreement
Service Agreements
Utilities responsible for maintaining transmission assets in certificated service areas, under
tentative
contract with the Transco. Transco to determine O&M responsibilities/ delineation for assets
agreement
crossing multiple jurisdictions.
Reliability Standards
Adopted Railbelt Reliability Standards and Planning Protocols as approved bythe RCA and
tentative
and Planning
administered by the Railbelt Reliability Council
agreement
Protocols
Transco Service
All assets 6gkVa in the certificated areas of and/or interconnecting the participating utilities or
tentative
Territory and
as determined by the Transco as providing transmission service+
agreement
franchise
Ratesrrariff Structure
Tariff structure and return on equity, to be proposed as part of the CPCN application. Initial
tentative
cost allocation.
agreement
Open Access Transmission Tariff for Network Transmission Service.
tentative
agreement
Technical and
Substantial agreement onthe approach of accomplishing shared servicesthrough service
tentative
Professional Services
agreements among the utilities and ATC. Company specific responsibilities/agreements under
agreement
discussion.
Equity Participation
Determined annually by each utility's percentage of cost allocation adjusted for ATC's equity
tentative
participation a Rotation. Specific percentages for ATC and each utility under discussion
agreement
Executive Leadership
Initial CEO, COO,CFO (positions may be combined in start-up phase)
needs decision
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9/25/2018
• Final analysis of additional benefits vs costs of aTransco formation based on recent
pooling progress, including size and incremental cost of the new organization;
The economic impact from changes in transmission rates and the overall impact on
the cost of energy;
Assurance that Transco formation continues to meet its obligations to serve
consumers through clear reliability and planning standards and reasonable rates;
Critical
Regulatory certainty, including the recovery of prudently incurred costs, based
Decision
upon the adopted standards, and the ability to meet long-term financial
obligations;
Factors
A governance structure that ensures the Railbelt's transmission network will be
operated and maintained economically and effectively to meet the needs of
present and future consumers;
Ownership and capital structure to maintain majority Railbelt ownership to ensure
local control and governance;
• Integration with potential establishment of a Railbelt Reliability Council and other
Railbelt optimization measures.
Timeline
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• May -September, 20i8: Monthly Railbelt Utility Manager (RUM)
discussions to negotiate and finalize key Transco Elements resulting
in tentative agreements
• September -October, 2oi8: Proposed terms presented to Railbelt
Utility boards/governing bodies
• ML&P- no board decision required at this time
• HEA-Septemberll
• GVEA -September 24
• Chugach -September z7
• SES —work session on September 25, potential decision on October 8
• MEA—October8
• 04 2o3.8: Report to RCA on utility decisions
• Q4 201.8: Finalize CPCN and/or final report to RCA
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9/25/2018
Alaska RailbeltTransco
A Progress Report by the Railbelt Utilities
CHUG._.': GVE—A Regulatory Commission of Alaska Public Meeting
"MFA September 26, 203.8 5
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