HomeMy WebLinkAboutRes1990-146
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Sponsored by: Schaefermeyer
CITY OF SEWARD, ALASKA
RESOLUTION NO. 90-146
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, APPROVING THE CHUGACH ELECTRIC
ASSOCIATION, INC., EQUITY MANAGEMENT PLAN
WHEREAS, The Chugach Electric Association, Inc., has developed
an Equity Management Plan to define procedures to calculate the G
& T Equity Ratios and capital credits; and
WHEREAS, these ratios and credits are used in part to
determine the wholesale customer rate structure; and
WHEREAS, the city administration has found the Equity Manage-
ment Plan submitted by CEA to be acceptable;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Manager is hereby authorized to execute
the Equity Management Plan with Chugach Electric Association, Inc.,
a copy of which is attached and incorporated herein by reference.
Section 2. This resolution shall take effect immediately upon
its adoption.
PASSED AND APPROVED by the City Council of the city of Seward,
Alaska, this 26th day of November, 1990.
THE CITY OF SEWARD, ALASKA
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W1ll1am C. Noll, Mayor
AYES:
BURGESS, DUNHAM, HILTON, KRASNANSKY, MEEHAN, NOLL &
SIEMINSKI
NONE
NONE
NONE
NOES:
ABSENT:
ABSTAIN:
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 90-146
ATTEST:
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(City Sea.l)
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APPROVED AS TO FORM:
Perkins Coie, Attorneys for
the city of Seward, Alaska
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76';V(k~1 J /aL<t.-J
Fred B. Arvidson
City Attorney
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STATE OF ALASKA
THE ALASKA PUBLIC UTILITIES COMMISSION
Before Commissioners:
Peter Sokolov, Chairman
Susan M. Knowles
Daniel Patrick O'Tierney
Mark A. Foster
Donald F. May
In the Matter of the Filing of )
Tariff Revisions, Designated as )
TA 88-8, as Supplemented, TA 90-8, )
TA 95-8, and TA 97-8, by chugach )
Electric Association, Inc., for )
Interim and Permanent Rate )
Increases and Rate Redesign )
)
U-87-35
SETTLEMENT AGREEMENT RESOLVING G&T TIER
LEVEL. EOUITY LEVEL. CAPITAL CREDITS. EOUITY
MANAGEMENT PLAN. AND LOAN COVENANT DISPUTES
chugach Electric Association, Inc. (Chugach), Homer Electric
Association, Inc., Matanuska Electric Association. Inc., the city
of Seward and Alaska Electric Generation and Transmission
cooperati ve, Inc. ("Wholesale customers") agree to resolve the
dispute over the content of Chugach's Equity Management Plan and
loan covenants contained in the loan agreement between Chugach and
CoBank in accordance with the specific provisions stated in this
Settlement Agreement resolving G&T TIER Level, Equity Level,
Capital Credits, Equity Management Plan and Loan Covenants Disputes
(hereinafter "Agreement").
It is the parties' intent to resolve
the issues raised in the pleadings on file with the Commission for
the term of this Agreement and to avoid resorting to the Commission
SETTLEMENT AGREEMENT
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to resol ve disputes over the proper level of Chugach's Times
Interest Earned Ratios (TIER).
1.
The Parties agree that an
appropriate G&T equity level goal for the initial term is 11% to
14%. To that end, for a term of five (5) years beginning on the
first quarter after the date of the last signature to this
Agreement, Chugach agrees to set the Generatio~ and Transmission
(G&T) TIER in accordance with the following table:
G&T Eauitv Ratio
nD
under 9%
9% to <11%
11% to <14%
14% to <17%
17% to <20%
20% or more
1.20
1.17
1.15
1.12
1.10
1.00
In the above table, G&T Equity Ratio is expressed as the ratio of
G&T equity to total G&T capitalization and shall be calculated as
more particularly described in Exhibit A.
Any fluctuations in
Chugach's overall TIER which are needed to achieve equity goals,
comply with loan covenants or for any other reason shall occur
through adjustments to the Distribution TIER and the G&T TIER shall
be set strictly in conformity with the above table. Chugach is
free to increase, reduce or maintain its Distribution TIER so long
as the G&T TIER is set strictly in accordance with the above table.
2. Chugach shall rotate G&T capital credits on not more than
a 10-year FIFO basis except as such rotations interfere with
adherence to existing loan covenants or security agreements.
Chugach will use its best efforts and good faith to maintain this
schedule of capital credits rotations and to interrupt these
SETTLEMENT AGREEMENT
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rotations only as a last resort. In the event the rotation
schedule is not met, chugach will file an explanation with the
Commission of why it cannot make the rotation. However, if Chugach
rotates G&T capital credits later than 10 years after allocation,
this Agreement is voidable at the option of Wholesale Customers.
3. The Wholesale Customers state that this Agreement
sUfficiently addresses their concerns so that pursuit of the
objections noted in their filings is no longer necessary in this
docket to protect their interests so long as this agreement shall
remain in effect. On this basis the Parties support the entry of
an order by the APUC approving of the EMF and loan covenants as
submitted for as long as this Agreement shall remain in effect.
4. G&T Equity as of December 31, 1989 ("beginning equity")
is as stated in Schedules 2 and 3 of this Agreement. 5. ~ty
calculations for chugach, including G&T Equity calculations, shall
be calculated annually using the methodology as set forth in
Exhibit A to this Agreement.
6. The parties agree to amend the Capital Credits
stipulation originally filed in docket U-86-29 as stated in the
Amendment to Capital Credits stipulation, attached as Exhibit B.
The parties agree that the Capital Credits stipulation as amended
shall remain in effect in accordance with its terms regardless of
whether all or a part of this Agreement is no longer in effect.
7. The G&T TIER will be adjusted annually, if necessary, in
accordance with this Agreement. The adjusted TIER will become
effective for the third quarter of each year (beginning July 1)
SETTLEMENT AGREEMENT -3-
based on G&T Debt and Equity amounts as of December 31 of the prior
year. The annually adjusted G&T TIER will become effective for the
third quarter of each year using the Simplified Rate Filing
procedures as filed with the Commission or other procedures
mutually agreeable with the parties.
8. The annual calculation of G&T Equity, G&T Equity Ratio
and G&T TIER shall be made at a meeting of the parties as soon as
possible after chugach's audited financial statements are
available. Chugach will provide to the Wholesale Customers a copy
of all audit and waived audit adjustments with all working papers
supporting the calculations pertaining to G&T Equity, all G&T
accounts and extraordinary losses affecting G&T accounts. These
adjustments shall be reviewed and be subject to good faith
discussion at the meeting of the parties.
9. This Agreement shall be voidable by either party if rate
changes which cannot be accommodated under the TIER adjustment
table in this Agreement are required by either:
1) catastrophic losses to Chugach having a value in excess of
20% of the prior year's gross revenue or,
2) major unforeseen events, such as refinancing except that
refinancing which do not require a change in this Agreement,
the G&T TIER, or G&T Equity shall not be a ground for making
this Agreement voidable.
10. The Wholesale CUstomers shall have the right to audit any
and all numbers used by Chugach in developing the Equity Management
SETTLEMENT AGREEMENT
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Plan, equity levels, capital credits and calculations of G&T equity
to total G&T capitalization ratio.
11. chugach shall furnish to the Wholesale Customers a copy
of its proposed Equity Management Plan for comment by the Wholesale
Customers, at least 30 days prior to presenting the Plan to the
Chugach Board of Directors.
12. Each party to this Agreement covenants and agrees to act
in good faith under this Agreement and the terms cited herein.
13. The Wholesale Customers and chugach agree to meet at
least one year prior to the expiration of this Agreement to
consider renewal or modifications of this Agreement or the Capital
Credit stipulation.
14. If the Commission approves a change such that Homer
Electric Association, Inc. (HEA) is treated as a separate class for
the purpose of chugach's Simplified Rate Filing, this Agreement, in
particular Schedule 1 to Exhibit A, may be amended at HEA's option
to treat HEA as a separate class for capital credit allocation
purposes. However, this change in allocation will not be made for
any period prior to the period in which HEA begins to pay rates as
a separate class under the above modification of Chugach's
simplified Rate Filing Procedures.
SETTLEMENT AGREEMENT
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CHUGACH ELECTRIC ASSOCIATION, INC.
By:
Its:
SETTLEMENT AGREEMENT
CHUGACH ELECTRIC ASSOCIATION, INC.
SIGNATURE PAGE
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Dated:
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HOMER ELECTRIC ASSOCIATION, INC.
By:
Its:
SETTLEMENT AGREEMENT
HOMER ELECTRIC ASSOCIATION, INC.
SIGNATURE PAGE
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Dated:
MATANUSKA ELECTRIC ASSOCIATION, INC.
By:
Its:
SETTLEMENT AGREEMENT
MATANUSKA ELECTRIC ASSOCIATION, INC.
SIGNATURE PAGE
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Dated:
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SEWARD ELECTRICAL SYSTEM
BY'~
Its: (]i /J1 ~/ A-/ ~
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SETTLEMENT AGREEMENT
SEWARD ELECTRICAL SYSTEM
SIGNATURE PAGE
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- Dated: ;)e::- c, r'::::> 17''10
ALASKA ELECTRIC GENERATION & TRANSMISSION, INC.
By:
Dated:
Its:
112090\C\emp57\amh
SETTLEMENT AGREEMENT -10-
ALASKA ELECTRIC GENERATION' TRANSMISSION, INC.
SIGNATURE PAGE
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EXHIBIT A
calcul.~ion of G&T Bauitv to Total G&T Caoitalization Ratio
The G&T Equity to Total G&T Capitalization Ratio (the "G&T Equity
Ratio") will be calculated in the fOllowing manner:
Total G&T Equity
G&T Equity Ratio = -------------------------------------------
Total G'T Equity + Total G&T Long Term Debt
Where:
Total G'T Equity =
a) Margins allocated in the form of Capital
Credits (calculated in accordance with the
procedures set forth in Schedule 1 to this
Exhibit A) to the Chugach G&T (which includes
margins allocated to both Chugach's retail
function and its wholesale customers) as
prescribed in the procedure contained in this
Exhibit A for the preceding year as shown on
Chugach's independently audited financial
records,
PLUS
b) the prior years' G&T Equity
LESS
c) the total amount of G&T Capital Credits
retired, including capital credits allocated
to Chugach I s retail members which will be
transferred to the Distribution side of the
equity calculation. This reduction will only
occur when the Capital Credit checks are
issued and delivered to the wholesale
customers.
The parties agree that the calculations contained on Schedules
2 and 3 to this Exhibit A are accurate as of December 31,
1989.
Total G'T Lonq
Term Debt =
All debt having an initial repayment term in
excess of 12 months (hereinafter "Long Term
Debt") that is properly allocated to the
Generation and Bulk Transmission components
of Chugach property, plant and equipment.
For purposes of calculating Total G&T Long Term Debt, the
parties agree as follows:
* All Long Term Debt acquired through December 31, 1989
shall be segregated (classified as G&T or Distribution
related) as indicated in Schedule 3 to this Exhibit A.
* All Long Term Debt acquired after 1989 shall be
segregated in accordance with the following procedures:
a) Long Term Debt shall generally be segregated
in accordance with the procedures established
by REA for classifying debt on REA Form 219,
which details the types of projects for which
funding was obtained via a draw on the note.
If Long Term Debt is acquired from sources
other than REA, the Long Term Debt shall be
segregated as if REA Form 219 were used to
the greatest extent possible.
b) Loan draws against Budget Purpose #1
(distribution) on REA Form 219 shall be
considered distribution related debt.
c) Loan draws against Budget Purpose #3
(generation) on REA Form 219 shall be
considered G&T related debt.
d) Loan draws against Budget Purpose #4
(headquarters) on REA Form 219 shall be
considered to be 25\ G&T related debt and 75\
distribution related debt.
e) Loan draws against Budget Purpose #2
(transmission) on REA Form 219 shall be
analyzed to determine the amount relating to
projects that are part of the bulk
transmission system. Such amounts shall be
considered G&T related debt. Any remaining
amounts will be considered to relate to the
"sub-transmission" system of Chugach and
shall be classified as distribution related
debt.
* 12.36\ of draws of CoBank debt outstanding as of
December 31, 1989 is assigned to G&T. The total amount
of CoBank debt assigned to G&T is reflected on Schedule
3 of this Exhibit A.
* The "current portion" of Long Term Debt, which is
reclassified to the current liabilities section of
chugach's Balance Sheet and verified through the audit
process will be considered to be Long Term Debt and
segregated in the same way as the associated note under
which it is payable.
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NOTES
* The Equity Ratio derived from this calculation will be carried
to four decimal places and formatted as follows:
"XX.YY%"
* The G&T Equity level derived from this calculation will be
applied to the agreed upon range of G&T Equity versus G&T TIER
levels and an appropriate adjustment, if necessary, made to
the ratemaking TIER charged to the wholesale customers
effective each July 1.
* capital Credits are the margins recorded on Chugach's
financial statements. separate equity accounts are maintained
for each wholesale customer. When capital credits are
authorized for retirement by Chugach's Board of Directors (for
wholesale customers this rotation will be on a ten year
basis), the authorized amount will be reclassified from the
Equity section of chugach's Balance Sheet to the Current
Liabilities section and excluded from the succeeding year's
equi ty level. This assumes that checks will be issued and
delivered by year-end. If checks have not been issued and
delivered, the retirement amount shall be reclassified to
equity for purposes of the G&T Equity Ratio calculation.
* For purposes of this agreement the Chugach transmission assets
will be classified as either "bulk" or "sub" transmission.
All transmission assets will be considered "bulk" except any
part of the transmission system which meets the following
criteria in which case it will be considered "sub"
transmission. Future additions to the transmission system
will be classified according to these criteria.
A. Any transmission line that is energized at 34.5 kV or
less will be considered "sub" transmission. In the
event a line currently energized at 34.5 kV is
energized at a higher voltage level, the parties will
meet to determine whether that line should be
considered "bulk" or "sub" transmission in the future.
B. Any transmission line that is used as a radial feed to
one of CEA's distribution substations will be
considered "sub" transmission.
c. All known subtransmission as of the date of this
agreement is set out in Schedule 4 to this Exhibit A.
111990\C\EMP75\amh
3
Schedule 1
Calculation of capital Credits
The total amount of capital Credits to be allocated to Wholesale
G&T, Retail G&T and Retail Distribution capital Credit accounts for
a particular year shall be the amount shown as Current Year Margins
on the post-audit Form 7.
Wholesale G&T
The share of the capital Credits allocated to Wholesale G'T capital
Credits (WG'T) shall be calculated as follows:
WG&T =
CUrrent Year Margins x Wholesale G&T Revenue
Adjusted Weighting Factor
Where:
Wholesale G'T Revenue Adjusted weighting Factor =
Adjusted Wholesale G&T Rate Case Margins + Adjusted Total Rate Case
Margins.
Where:
Adjusted Wholesale G'T Rate Case Margins =
Margins allocated to Wholesale G&T from Cost of Service
Study x (CUrrent Year Gross Revenues for Wholesale G&T +
Wholesale G&T Rate Case Gross Revenues)
AND
Adjusted Total Rate Case Margins =
Total margins from Cost of Service Study x (Total current
year gross revenues + Total rate case gross revenues)
Schedule 1
Page 1 of 6
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Retail G&T
The share of the Capital Credits allocated to Retail G&T Capital
credits (RG&T) shall be calculated as follows:
RG&T =
Current Year Margins x Retail G&T Revenue Adjusted
Weighting Factor
Where:
Retail G&T Revenue Adjusted weighting Factor =
Adjusted Retail G&T Rate Case Margins + Adjusted Total Rate Case
Margins.
Where:
Adjusted Retail G&T Rate Case Margins =
Margins allocated to Retail G&T from Cost of Service
study x (Current Revenues for Retail G&T + Retail G&T
Rate Case Revenues)
AND
Adjusted Total Rate Case Margins =
Total margins from Cost of Service study x (Total current
year revenues + Total rate case revenues)
Schedule 1
Page 2 of 6
Retail Distribution
The share of the Capital Credits allocated to Retail Distribution
capital Credits (D) shall be calculated as follows:
D - CUrrent Year Margins x Distribution Revenue
Adjusted Weighting Factor
Where:
Distribution Revenue Adjusted .eighting Paator =
Adjusted Distribution Rate Case Margins + Adjusted Total Rate Case
Margins.
Where:
Adjusted Distribution Rate Case xargins -
Margins allocated to Distribution from Cost of Service
study x (CUrrent Revenues for Distribution + Distribution
Rate Case Revenues)
AND
Adjusted Total Rate Case xargins =
Total margins from Cost of Service Study x (Total current
year revenues + Total rate case revenues)
Notes
1. The capital credit allocation calculations described above
will be repeated for each portion of a year for which different
Allocated Cost of Service study Results were utilized.
2. The results of the capital credit allocation calculations for
each portion of a year shall be summed to determine the total
Capital Credit Allocation for year.
3. Post-audit Form 7 CUrrent Year Margins will be spread to the
various portions of the year for which different Allocated Cost of
Service study Results were utilized based on Total Actual Revenues
earned during each portion of the year.
As shown on the example on the attached spreadsheet.
The capital credit allocation for each time period will be
calculated as follows:
Schedule 1
Page 3 of 6
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-Column A The gross revenues from electric sales are from the Form
7 for the pertinent time period. Wholesale amounts
include sales to AEG&T /MEA, AEG&T /HEA & Seward only.
Sales to GVEA & MLP are not included.
-Column B The total margins for the time period are an allocation
of the total net margins for the year. These are
allocated to the periods based on actual revenues.
-Column C The annual revenue responsibility between Retail and
Wholesale G & T are based on the relevant approved
revenue allocation for that time period. This will be
either a docket in which a cost-of-service (COS) was
approved by the APUC or an approved simplified Rate
Filing (SRF).
-Column D The margins assigned to Retail G&T, Retail Distribution,
and Wholesale G&T customer groups are from the approved
allocation as discussed under "Column C" above.
-Column E The current revenue collected as a percent of the
approved revenue responsibility is calculated using the
gross revenues in Column A and the approved annual
revenue responsibility in Column C.
Gross Revenues / Annual Revenue Responsibility from
Docket (A / C) = Current Revenue t.
-Column F The assigned margins from the most recent CoS or SRF
(Column D) are adjusted by the percentage calculated in
Column E to reflect the amount of margins that could have
been collected in the time period. The adjustment is
made by multiplying Column D by Column E.
Assigned Margins in Docket x Current Revenue % (D x E) =
Adjusted Rate Case Margins.
-Column G The actual margins collected in the time period are
allocated to Retail G&T, Retail Distribution, and the
Wholesale G&T customer groups in Column G. The margins
in Column B are allocated to the groups pro rata based on
the adjusted rate case margins computed in Column F.
The margins allocated to each of the three groups of
customers are added up for each time period over which
the calculation is made.
Margins for the period x (Margins adjusted for
docket/Total adjusted margins)
B X (F / Total F) = Allocated Adjusted Margins
Schedule 1
Page 4 of 6
Attached to this schedule is a copy of the spreadsheet used to
allocate the 1989 marqins amonq the three customer groups. Please
note that the margins for the year ended December 31, 1989 are
allocated in two time periods -- January to June and July to
December 1989.
111990\C\emp69\amh
Schedule 1
Page 5 of 6
8/20/90 3:55 PH
CAPCR89. XLS
CHUGACH ELECTRIC ASSOCIATION, INC.
DETERMINATION OF RETAil AND UHOlESAlE ~RGIH AllOCATION
CALCULATION IIEIGHTED BETIIEEN DOCKET U-87-35 AND SRF-89
MARGINS UEIGHTED 8Y MONTNlY REveNUES
FOR THE YEAR ENDED DECEMBER 31, 1989
IJREVISED I
PERIOD ONE: JANUARY THROUGH JUNE 1989
(AI (Bl (Cl (01 (El (Fl (G) IH)
Curro Rev. Ad justed All ocated 1989 Current Margins
1/89 - 6/89 1989 Margins Annual Reve-nue Assigned as percent ABte Case Margin., ba.ed on as percent
Gross Through Responslbil i tv Margins of Rate Case Margi". Adl'd Rate Case of Rate Case
ReveBJes J..... Docket U.87-35 Docket U-87-35 (A)/(C) (D)"(E) (8)"((F)/Tot F)) (Gl/(D)
.........---.....- ------..---- ............................- ----------..--- ....................-.. -----------.. ----..-------..-..- .-..-----..----
Reta iI - GIoT S32,223,498 S63. 909.075 SI,788,521 50.42% S901,787 S822,260 45.971
huil - Dlst SO SO S5,II30,332 50.42% S2.939,703 S2,680.455 45.971
IIholesale S15,656.593 S32.035,805 $1,532,957 411.871 S749,1119 S6Il3,119 44 . 56~
Total Slo7 880 091 S4.1115.834 $95.944,880 $9,151 1110 Slo.590 6lIO 14,185,834
PERIOD T\IO, JULY THROUGH DECEMBER 1989
(A) (8) (C) ,(D) (El (n (Gl (H)
Curro Rev. Adjusted Allocated 19119 Current Margins
71119-12189 19119 Margins A.....l Reve...... Assigned a. percent Rata Ca.. Marg Ins. ba.ed on a. percent
Gros. JulV thru Responslbit i tv Margins of Rate C... Margins AdJ'd Rat. C... of Rat. Ca.. \0
Rev......s Oee.......r SRF-89 SRF-89 (AlI(Cl (D)"(El (11"((fI/Tof FI) (GI/(O) ~
0
..-...-..-----... ----....-......- --...-----..-..--- -....................--..... ---........------ ....--...........--- ---------------- ................-......
Ref. il - lilT 131,020,437 S61,269,3tO S1,72I1,9111 50.63% SlI75,345 S785 ,567 45.44% \0
Retail - Dlsf SO SO S5 ,676. 105 50.631 S2.1171,791 S2,579,045 45.441 g
Uholesale S15,198,351 SlO.527,3117 SI,512,9511 49.791 S753,241 S675,9116 44.6111 0.
Total 146 218 71111 14 040 598 $91 796 697 SlI.917 979 14.502 377 SIt 040,5911
SUl4HATlON OF THE T\IO PERIODS
(A)
(II
(CI
(DI
(El
(fl (G) (M)
S... Of
Allocated 1989
Margins
A..._______....__ .-l
$1,607,827 1
S5,259,500
$1,359,105
sa 226 432
{J}
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Retail - GILT
Retail . Dlst
Uholesal.
$63,243,935
SO
S30,854,944
Total
S94.098,879 sa.226.432
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Schedule 2
Summary of G&T Equity
1983 Through 1989
Year
Total
Retail
Distribution G&T
Wholesale
G&T
Total
G&T
System
Total
===========================================--------------=========================
Pre-
1983 $8,564,934 $8,564,934 $ 0 $ 0 $ 0 $8,564,934
1983 3,800,834 1,376,715 2,424,128 1,672,710 4,096,838 5,473,553
1984 6,336,544 2,258,913 4,077,631 3,098,972 7,176,603 9,435,516
1985 8,171,335 2,804,170 5,367,165 4,631,779 9,998,944 12,803,114
1986 3,852,696 1,581,943 2,270,753 2,135,078 4,405,831 5,987,774
1987 4,188,668 2,749,614 1,439,054 1,205,509 2,644,563 5,394,177
1988 6,145,715 4,220,006 1,926,709 1,533,287 3,459,996 7,680,002
1989 6,867,327 5,259,500 1,607,827 1,359,105 2,966,932 8,226,432
$47,929,062 $28,815,795 $19,113,267 $15,636,440 $34,749,707 $63,565,502
== ~~ - =
Total Retail and Wholesale G&T Equity $34,749,707
Assumptions:
1. Assumed split of CEA's pre-1983 retail equity to G&T: 0%
2. 1983-1987 margins allocated based on Capital Credits Stipulation.
3. 1988 margins allocated utilizing Dockets U-86-29 and U-87-35 weighting
based on monthly revenues, margins weighted by revenues.
4. 1989 margins allocated utilizing U-87-35 and Simplified Rate Filing margins
weighted by monthly revenues.
5. Beginning system equity of $8,564,934 is the result of reducing the pre-
1983 patronage capital amount of $11,034,275 as per the 1982 Audited
Financial Statement by retail capital credit retirements and estate
payments in the amount of $2,469,341.
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G&T
FFB Long Term Debt
REA 2% and 5%
Schedule 3
Long Term Debt segregation
Related and Distribution Related
At December 31, 1989
G&T
$169,192,753
81,956,306
CoBank--Spokane Region 1,654,969
TOTAL $252,804,028
G&T Equity Ratio =
Distribution
Total per
Financial
statements
$ 0 $169,192,753
72,493,173 154,449,479
11,734,748 13,389,717
$84,227,921 $337,031,949
34,749,707
-------------------------
34,749,707 + 252,804,028
34,749,707
= -------------------------
287,553,735
= 12.08%
G&T Equity 11% to <14% = 1.15 G&T TIER
Schedule 4
Listing of
"Sub" Transmission projects
* International Station - the plant associated with the 34.5 kV
transfer bus.
* The 34.5 kV lines out of International station that feed the
following substations:
Airport
Woodland Park
Turnagain
Spenard
Raspberry
Jewel Lake
Campbell Lake
Sand Lake
Klatt
Arctic
Dowling
* university station - the plant associated with the 34.5 kV
transfer bus.
* The 34.5 kV lines out of University Station that feed the
following substations:
Boniface
Huffman
O'Malley
DeBarr
Tudor
* Hope substation
* Portage substation
* Girdwood substation
* Indian substation
* Daves Creek substation - the plant associated with the 24.9 kV
transfer bus and the lines that feed Cooper Landing and Crown
Point.
111990\C\emp76\amh
STATE OF ALASKA
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THE ALASKA PUBLIC UTILITIES COMMISSION
Before Commissioners:
Peter Sokolov, Chairman
Susan M. Knowles
Daniel Patrick O'Tierney
Mark A. Foster
Donald F. May
In the Matter of the Filing of
Tariff Revisions, Designated as
TA 80-8 and TA 82-8, by CHUGACH
ELECTRIC ASSOCIATION, INC., for
Interim and Permanent Rate
Increases and Rate Redesign
U-86-29
AMENDMENT TO CAPITAL CREDIT STIPULATION
As part of the Settlement Agreement Resolving G&T TIER
Level, Equity Management Plan and Loan Covenant Disputes, the
.
undersigned have agreed to amend the capital Credit StipUla-
tion filed in U-86-29 as follows.
1. Beginning with 1988, in allocating capital credits
under the above capital Credit stipulation, the "Revenue
Adjusted/Allocated Margins" methodology will be modified to
accommodate changes in TIER and the allocators used in the
Allocated Cost of Service study (ACOS) which occur during the
year for which capital credits are being calculated. The
calculation of capital credits for each year shall be based on
the TIER and allocators approved by the APUC and in effect
during each portion of a year.
The net margins will be
allocated between the periods of a year based on actual
revenues for those periods.
.
AMENDMENT TO CAPITAL CREDIT STIPULATION
Page 1
Exhibit B
2. Under Simplified Rate Filing, Chugach will at least
annually update the ACOS (revising the allocators) and will
modify the TIER, if necessary, for implementation on July 1 of
each year through the simplified Rate Filing process.
3 . The term of the Capital Credit Stipulation which was
previously set to end at the end of 1991 is modified so that
the term of the Capital Credit stipulation shall extend to
cover the allocation of margins earned through the end of
1995. The parties agree that the Capital Credits stipulation
shall remain in effect in accordance with its terms regardless
of whether all or part of the Settlement Agreement Resolving
G&T Tier Level, Equity Level, Capital Credits, Equity
Management Plan, and Loan Covenants Disputes is in effect.
4. If losses occur to either G&T or Distribution assets
and the APUC does not permit amortization of the losses, then
unamortized losses to either G&T or Distribution should be
directly assigned to that function. Net G&T losses will be
divided between wholesale and retail on the basis of the cost-
of-service classification/allocation of the related expense or
plant item. This provision does not preclude the parties from
requesting that the APUC order that a loss for which
amortization is not permitted not be assigned to the G&T
function for reasons of mismanagement. chugach agrees that
before it requests amortization of a loss it will notify HEA,
MEA, Seward Electric system and AEG&T no less than 20 days in
AMENDMENT TO CAPITAL CREDIT STIPULATION
Page 2
.
advance of filing such a request with the APUC and will meet
and confer with any of parties on request about the proposed
amortization or accounting treatment of the loss.
.
.
AMENDMENT TO CAPITAL CREDIT STIPULATION
Page 3
CHUGACH ELECTRIC ASSOCIATION, INC.
By:
Its:
AMENDMENT TO CAPITAL CREDIT STIPULATION
CHUGACH ELECTRIC ASSOCIATION, INC.
SIGNATURE PAGE
Dated:
Page 4
HOMER ELECTRIC ASSOCIATION, INC.
.
By:
Its:
.
.
AMENDMENT TO CAPITAL CREDIT STIPULATION
HOMER ELECTRIC ASSOCIATION, INC.
SIGNATURE PAGE
Dated:
Page 5
MATANUSKA ELECTRIC ASSOCIATION, INC.
By:
Its:
AMENDMENT TO CAPITAL CREDIT STIPULATION
MATANUSKA ELECTRIC ASSOCIATION
SIGNATURE PAGE
Dated:
Page 6
.
.
.
SEWARD ELECTRICAL SYSTEM
By:
~~
&~.~
Its:
kvU~'
cj;J)
AMENDMENT TO CAPITAL CREDIT STIPULATION
SEWARD ELECTRICAL SYSTEM
SIGNATURE PAGE
Dated: .))f3t!. ~ 0 _ / if e;J
"
Page 7
ALASKA ELECTRIC GENERATION & TRANSMISSION, INC.
By:
Its:
111990\C\emp57a\amh
AMENDMENT TO CAPITAL CREDIT STIPULATION
ALASKA ELECTRIC GENERATION & TRANSMISSION, INC.
SIGNATURE PAGE
Dated:
Page 8