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Chugach Electric Association, Inc. 5601 Electron Drive, P.O. Box 196300 Anchorage, Alaska 99519-6300 ● (907) 563-7494 Fax (907) 562-0027 ● (800) 478-7494 www.chugachelectric.com ● [email protected] November 8, 2017 ELECTRONICALLY FILED WITH RCA Regulatory Commission of Alaska 701 W. 8 th Avenue, Suite 300 Anchorage, Alaska 99501 Subject: Tariff Advice No. 446-8; Second Amendment to the Isolated Operating Agreement for Government-Owned Disaster Preparedness Generation Facilities between Chugach Electric Association, Inc. and the Anchorage School District Commissioners: The tariff filing described below is hereby transmitted to you for filing in compliance with the Alaska Public Utilities Regulatory Act and Sections 3 AAC 48.200 - 3 AAC 48.420 of the Alaska Administrative Code. With this filing, Chugach Electric Association, Inc. (“Chugach”) requests approval of the attached agreement entitled, “Second Amendment to the Isolated Operating Agreement for Government-Owned Disaster Preparedness Generation Facilities between Chugach Electric Association, Inc. and the Anchorage School District” (“Second Amendment”). Tariff Sheet No. 73 of Chugach’s operating tariff is attached and has been updated to reflect the Second Amendment. TARIFF SHEET NUMBER CANCELS SHEET NUMBER SCHEDULE OR ORIGINAL REVISED ORIGINAL REVISED RULE NUMBER 73 14th Revision 73 13th Revision Schedule of Special Contracts This filing is not for a new service, will not result in the termination of an existing service, conflict with any other schedule or rate contained in Chugach’s operating tariff, or in any other way adversely impact customers or the public. This filing has no impact on Chugach’s revenues, and Chugach does not believe that any individual customer is directly impacted by this filing. Rather, Chugach believes the interconnected electric power system is benefitted by the limited power supply redundancy permitted by the Second Amendment. Thus, the Second Amendment does not adversely affect other customers and there is no impact on Chugach’s rates or charges. Chugach has approximately 67,800 retail members (80,900 retail metered locations). This filing has no impact on wholesale members. Summary The Anchorage School District (“ASD”) installed generation facilities at various schools located throughout the Municipality of Anchorage as part of a district-wide disaster preparedness effort to provide shelter for students, faculty and in some instances the community during disaster and emergency situations. As part of this effort, ASD installed a generator within the Service High School Complex (“School Complex”) and requested that it be permitted to use Chugach’s distribution system within the complex when power from Chugach’s interconnected grid is not available. Chugach agreed to allow the ASD use of its distribution system facilities within the

November 8, 2017 ELECTRONICALLY FILED WITH RCA for Government-Owned Disaster Preparedness Generation Facilities between Chugach Electric Association, Inc. and the Anchorage School

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Chugach Electric Association, Inc. 5601 Electron Drive, P.O. Box 196300 Anchorage, Alaska 99519-6300 ● (907) 563-7494 Fax (907) 562-0027 ● (800) 478-7494

www.chugachelectric.com ● [email protected]

November 8, 2017 ELECTRONICALLY FILED WITH RCA Regulatory Commission of Alaska 701 W. 8th Avenue, Suite 300 Anchorage, Alaska 99501 Subject: Tariff Advice No. 446-8; Second Amendment to the Isolated Operating

Agreement for Government-Owned Disaster Preparedness Generation Facilities between Chugach Electric Association, Inc. and the Anchorage School District

Commissioners: The tariff filing described below is hereby transmitted to you for filing in compliance with the Alaska Public Utilities Regulatory Act and Sections 3 AAC 48.200 - 3 AAC 48.420 of the Alaska Administrative Code. With this filing, Chugach Electric Association, Inc. (“Chugach”) requests approval of the attached agreement entitled, “Second Amendment to the Isolated Operating Agreement for Government-Owned Disaster Preparedness Generation Facilities between Chugach Electric Association, Inc. and the Anchorage School District” (“Second Amendment”). Tariff Sheet No. 73 of Chugach’s operating tariff is attached and has been updated to reflect the Second Amendment. TARIFF SHEET NUMBER CANCELS SHEET NUMBER SCHEDULE OR ORIGINAL REVISED ORIGINAL REVISED RULE NUMBER

73 14th Revision 73 13th Revision Schedule of Special Contracts This filing is not for a new service, will not result in the termination of an existing service, conflict with any other schedule or rate contained in Chugach’s operating tariff, or in any other way adversely impact customers or the public. This filing has no impact on Chugach’s revenues, and Chugach does not believe that any individual customer is directly impacted by this filing. Rather, Chugach believes the interconnected electric power system is benefitted by the limited power supply redundancy permitted by the Second Amendment. Thus, the Second Amendment does not adversely affect other customers and there is no impact on Chugach’s rates or charges. Chugach has approximately 67,800 retail members (80,900 retail metered locations). This filing has no impact on wholesale members. Summary The Anchorage School District (“ASD”) installed generation facilities at various schools located throughout the Municipality of Anchorage as part of a district-wide disaster preparedness effort to provide shelter for students, faculty and in some instances the community during disaster and emergency situations. As part of this effort, ASD installed a generator within the Service High School Complex (“School Complex”) and requested that it be permitted to use Chugach’s distribution system within the complex when power from Chugach’s interconnected grid is not available. Chugach agreed to allow the ASD use of its distribution system facilities within the

Commissioners November 8, 2017 Tariff Advice No. 446-8 Page 2 of 4

School Complex without any attendant wheeling or other access charges provided the power is wheeled in response to an emergency situation or for testing purposes in conformance with the guidelines contained in the agreement. In 2006, Chugach and the ASD entered into an agreement titled, “Isolated Operating Agreement for Government-Owned Disaster Preparedness Generation Facilities” (“2006 Agreement”). This Agreement specified the terms and conditions under which ASD may use Chugach’s distribution facilities within the School Complex for the delivery of emergency power from ASD’s generator during times when power from Chugach’s interconnected grid was not available. Under terms of the 2006 Agreement, the ASD is not permitted to generate power for delivery outside the School Complex unless otherwise authorized by Chugach. In no event shall electricity generated by ASD be resold or be delivered to locations that are not used or relied upon by ASD in response to an emergency situation. The 2006 Agreement was submitted to the Commission under Tariff Advice No. 275-8 and approved in Letter Order L0600565. The Agreement was for a ten-year term ending December 31, 2016. On February 13, 2017, the Commission approved a 1-year extension of this Agreement in Tariff Advice No. 432-8.1 Contract Summary The 2006 Agreement has worked very well over the past eleven years and the Parties have not experienced any significant difficulties with the 2006 Agreement. The Second Amendment updates the 2006 Agreement in two fundamental ways: 1) commissioning and testing protocols associated with the original commissioning of the generation unit have been removed; and, 2) switching responsibilities have been transferred from the ASD to Chugach. Below is a summary of each section of the Second Amendment. Section 1: Parties, identifies the parties to this agreement. Section 2: Recitals, describes the parties, including the need for, and conditions of, the operating agreement for disaster preparedness generation service. This Section has been expanded to include reference to the 2006 Agreement and the one-year extension. Minor wording changes have been made for increased clarity. Section 3: General, articulates the key provisions of this Agreement. This Section is largely unchanged from the 2006 Agreement with the exception of updates to Sections referenced in the Agreement. It describes the terms under which the ASD will use the Chugach Distribution facilities within the School Complex and prohibits the ASD from reselling or delivering energy generated by ASD for purposes other than emergency situations. The ASD is also prohibited from delivering generated energy to those outside the School Complex area, including into the Chugach supply grid. 1 See Letter Order L1700050.

Commissioners November 8, 2017 Tariff Advice No. 446-8 Page 3 of 4

Section 4: Ownership of and Responsibility for Equipment, specifies which party will own, maintain and be responsible for which equipment. It also describes the process to be followed if replacement, modification or design of the ASD equipment is contemplated. Section 5: Operational Conditions and Procedures, contains descriptions of the situations when the standby generation will be utilized and the rights of the parties in those situations. In the 2006 Agreement, Section No. 5 addressed initial systems testing and acceptance provisions. Because the emergency generator is now installed and operating, that Section has been deleted in its entirety. The new Section 5 addresses operational conditions and procedures and remains largely unchanged from the 2006 Agreement. This Section references Attachment A to the Second Amendment to describe the conditions under which the emergency generator will be operated. It also covers the conditions for generator testing, limits and coordination efforts required for such testing. It permits Chugach to disconnect the generator from the Chugach system, when necessary, to protect personnel or property. Section 6: Metering, Rates and Billing, specifies how energy supplied by the parties will be identified and treated with this type of arrangement. The description of several delivery points has been updated. Chugach has redacted member and account numbers from this Section of the attachment as they are considered confidential member information. The parties deleted the provision regarding telecommunication access for the delivery points. This is no longer needed because meter reading is now completed through Chugach’s Advanced Metering Infrastructure program. Section 7: Term; Transferability; Amendments; Termination, identifies when this Agreement becomes effective, its duration and how it would be terminated. Similar to the 2006 Agreement, the parties again seek a ten-year term, through December 31, 2027, for the Second Amendment. Section 8: Miscellaneous Provisions, provides the Second Amendment is subject to RCA approval and remains subject to revision by the RCA. Section 8 also contains boilerplate contractual provisions covering indemnification, waivers, no third-party beneficiaries, governing law, severability, insurance and notice provisions, all of which are identical to the 2006 Agreement. Section 9: Definitions, provides explanation of the terms used in the Agreement. Changes in this Section are clarifying in nature. Tariff Sheet Changes Tariff Sheet No. 73: The text “Second Amendment to the” has been added to the beginning of the sentence on item number “2.” simply to acknowledge that this is the second amendment to this contract. In addition, the effective date has been changed from “September 1, 2006 through December 31, 2017” to “January 1, 2018 through December 31, 2027” to reflect the new term of the Second Amendment.

Commissioners November 8, 2017 Tariff Advice No. 446-8 Page 4 of 4

Please contact me at 907-762-4158 or [email protected], if additional information is needed. Sincerely, CHUGACH ELECTRIC ASSOCIATION, INC.

Arthur W. Miller Executive Manager, Regulatory and External Affairs P.O. Box 196300 Anchorage, Alaska 99519-6300 Telephone: 907-762-4758 Facsimile: 907-762-4514 [email protected] Attachments cc: John Foutz, City of Seward (electronically) Thomas Roth, Anchorage School District (electronically) Darin Hargraves, Anchorage School District (electronically) David Whiting, Anchorage School District (electronically)

RCA No.: 8 14th Revision Sheet No. 73

Canceling

13th Revision Sheet No. 73

Chugach Electric Association, Inc.

SCHEDULE OF SPECIAL CONTRACTS The following is a listing pursuant to 3 AAC 48.370(26) of all special contracts to which Chugach is a party: 1. Agreement for the Sale and Purchase of Electric Power and Energy between Chugach Electric Association, Inc.,

and the City of Seward, effective May 31, 2006 through December 31, 2011; extended through December 31, 2021, with amendments one and two.

2. Second Amendment to the Isolated Operating Agreement for Government-Owned Emergency Generation

Facilities between Chugach Electric Association, Inc., and the Anchorage School District, effective January 1, 2018 through December 31, 2027.

3. Gas Dispatch Agreement between Chugach Electric Association, Inc. and Matanuska Electric Association Inc. effective April 1, 2016 through March 31, 2019.

C C C

Tariff Advice No.: 446-8

Effective: January 1, 2018

Issued by: Chugach Electric Association, Inc.

P.O. Box 196300, Anchorage, Alaska 99519-6300 By: Title: Chief Executive Officer

Lee D. Thibert

November 3, 2017 Page 1 of 20

SECOND AMENDMENT TO THE

ISOLATED OPERATING AGREEMENT FOR

GOVERNMENT-OWNED DISASTER PREPAREDNESS GENERATION

FACILITIES BETWEEN

CHUGACH ELECTRIC ASSOCIATION, INC.

AND THE

ANCHORAGE SCHOOL DISTRICT

SECTION 1: PARTIES

1. The parties to this agreement (“Agreement”) are CHUGACH ELECTRIC

ASSOCIATION, INC. (“Chugach”), an Alaska non-profit electric

cooperative corporation located at 5601 Electron Drive in Anchorage, Alaska;

and THE ANCHORAGE SCHOOL DISTRICT (“ASD”) located at 4600

DeBarr Road in Anchorage, Alaska (herein referred to individually as “Party”

and collectively as “Parties”).

SECTION 2: RECITALS

2. The Parties previously entered into an Isolated Operating Agreement for

Government-Owned Disaster Preparedness Generation Facilities. The

Regulatory Commission of Alaska (“RCA” or “Commission”) approved of

the Agreement in Letter Order L0600565.

3. The Parties agreed to extend the Agreement for a one year period, to expire

December 31, 2017. The Amendment was approved by the Commission in

Letter Order L1700050.

4. The Parties now wish to further modify the Agreement, as amended, and

extend the term as provided herein.

November 3, 2017 Page 2 of 20

5. Chugach is an electric cooperative that provides electric service pursuant to

Certificate of Public Convenience and Necessity No. 8. Chugach is subject to

economic regulation by the Regulatory Commission of Alaska.

6. Chugach provides electric service to ASD at various locations within

Chugach’s certificated service area under existing, Commission-approved

tariffed rate schedules.

7. ASD installed a single 1.25 megawatt Disaster Preparedness Generator

(“Generator”) at the Service High School Complex located at 5577 Abbott

Road in Anchorage, Alaska. The Generator is for disaster preparedness and

for use by the ASD when Chugach is unable to provide electric power from its

Distribution System.

8. Energization of the Service High School Complex by ASD’s Generator

requires the use of Chugach’s Distribution System to wheel power from the

Generator to the Service High School Complex during emergency and testing

situations. Energization of the Service High School Complex by ASD’s

Generator is for the sole benefit of ASD and other Governmental Entities in

connection with disaster preparedness activities.

9. The Municipality of Anchorage and Anchorage Water and Wastewater Utility

have facilities that receive electric service from Chugach’s Distribution

System located within the Service High School Complex. These facilities are

considered part of the Service High School Complex and during emergency

and certain testing situations may be energized from ASD’s Generator.

November 3, 2017 Page 3 of 20

SECTION 3: GENERAL

10. Chugach agrees to allow ASD use of its Distribution System facilities within

the Service High School Complex without any attendant wheeling charge,

provided the power is wheeled in response to an Emergency Situation or for

testing purposes in conformance with the guidelines contained in this

Agreement.

11. Generator testing that requires use of Chugach’s Distribution System shall be

allowed and performed in accordance with Section 5 of this Agreement.

12. In no event shall electricity generated by ASD be resold or be delivered to

locations that are not used or relied upon by ASD in response to an

Emergency Situation, as qualified by paragraph 13.

13. In no event shall ASD generate power for delivery outside the Service High

School Complex or into the Chugach Electrical Supply Grid unless otherwise

authorized by Chugach.

14. Electric service to ASD is provided subject to Chugach’s Rates, Rules and

Regulations governing electric service (Operating Tariff).

SECTION 4: OWNERSHIP OF AND RESPONSIBILITY FOR EQUIPMENT

15. The Generator, all electrical equipment connected between the Generator, the

Generator output meter, as well as the meter base and associated conduit

(“ASD Equipment”) shall be the property of ASD. The Generator output

meter is the point of ownership separation between ASD and Chugach-owned

facilities.

November 3, 2017 Page 4 of 20

16. ASD shall be solely responsible for the design, construction, operation,

maintenance, repair, and replacement of all ASD Equipment. At all times, the

ASD Equipment shall comply with all applicable federal, state, and local laws

and regulations. Any subsequent replacement, modification, or design of any

part of the ASD Equipment or interconnection shall also be subject to prior

review and acceptance by Chugach.

17. The ASD Equipment and any subsequent replacement or modification of any

ASD Equipment shall not be allowed to connect to Chugach’s system

facilities unless and until they have been reviewed and accepted, in writing, by

Chugach.

18. ASD shall not operate, have access to, or perform maintenance on any

Chugach Equipment or facilities outside of the specific provisions for isolated

operation contained within this Agreement.

19. From time-to-time, Chugach shall be allowed access at reasonable times to

inspect the facilities on ASD property for the purpose of facilitating

performance of, and ensuring compliance with, this Agreement.

20. Chugach’s review and acceptance of the ASD Equipment under this

Agreement is solely for the benefit of Chugach and shall not be construed as

confirming or endorsing the design of the ASD Equipment or as a warranty of

the safety, durability or reliability of the ASD Equipment. Chugach shall not,

by reason of any review, acceptance, or failure to review the ASD Equipment,

be responsible in any way for any of the ASD Equipment or defects therein or

any loss or damages caused by or arising out of the ASD Equipment,

November 3, 2017 Page 5 of 20

including but not limited to costs, losses, property damage, personal injury,

and/or death.

SECTION 5: OPERATIONAL CONDITIONS & PROCEDURES

21. The Service High School Disaster Preparedness Generator will only energize

the Chugach Distribution System under the conditions and procedures

described within the “Power Emergency Sequence of Operations for Service

High School Disaster Preparedness Generator” in Attachment A to this

Agreement. Under no circumstances shall ASD operate the Generator in

Parallel Operation with Chugach’s integrated Distribution System.

22. For test purposes, ASD may isolate the Chugach Distribution System serving

the Service High School Complex and energize those isolated facilities from

the Service High School Generator source. Generator testing that requires

use of Chugach’s Distribution System shall be limited to a maximum of 6

hours in each calendar year. Durations exceeding this maximum require prior

written Chugach approval, and shall be requested by ASD. Energy generated

for testing purposes will not be included in Chugach billing amounts. ASD

shall coordinate with Chugach’s System Control Center (telephone 907-762-

4660; fax 907-762-4540; or such other number designated by Chugach) for

such testing, and shall submit such request in writing a minimum of 72 hours

in advance (excluding weekends and holidays) of the requested test time.

ASD shall be responsible for any and all Chugach costs associated with the

November 3, 2017 Page 6 of 20

test(s). At its discretion, Chugach may decline the request and re-schedule to

a date and time agreeable between both Parties.

23. At any time when ASD is operating the Generator for any purpose, Chugach

reserves the right to disconnect the Generator from the Chugach Distribution

System as necessary to protect Chugach personnel or property. In order to

maintain its facilities within the Service High School Complex, Chugach may

request that ASD personnel or assigned contract personnel disable the

Generator control to prevent Generator operation. Paragraph 34 of this

Agreement shall apply under the situation described in the foregoing sentence.

Chugach shall coordinate with ASD District Maintenance (current contact

telephone number 907-345-7915) regarding any request for ASD to disable

the Generator.

SECTION 6: METERING, RATES AND BILLING

24. Energy and demand delivered to ASD from its Generator will not be included

in monthly billing amounts. Each Chugach Delivery Point within the ASD

Complex shall be metered and billed at the applicable commercial rate

schedule, as specified in Chugach’s Operating Tariff. Delivery Points shall

not be totalized for purposes of determining billing determinant amounts.

25. The generation interconnection point within the Service High School

Complex is:

Member:

Service Address: 5577 Abbott Rd., Service HS Generator

Account:

November 3, 2017 Page 7 of 20

26. The Delivery Points within the Service High School Complex are:

Member:

Service Address: 5577 Abbott Rd., Gym

Billed To: Anchorage School District

Account

Member:

Service Address: 5577 Abbott Rd., Pump House

Billed To: Municipality of Anchorage

D/B/A Anchorage Water and Wastewater Utility

Account:

Member:

Service Address: 5577 Abbott Rd., Pool

Billed To: Anchorage School District

Account:

Member:

Service Address: 5577 Abbott Rd., Service HS NE Corner

Billed To: Anchorage School District

Account:

Member:

Service Address: 5577 Abbott Rd., Service HS SE Corner

Billed To: Anchorage School District

Account:

Member:

Service Address: 5577 Abbott Rd., Service HS SW Corner

Billed To: Anchorage School District

Account:

27. Delivery Points within the Service High School Complex shall be limited to

ASD or other Governmental Entities, and shall not be changed without prior

authorization by Chugach.

November 3, 2017 Page 8 of 20

SECTION 7: TERM; TRANSFERABILITY; AMENDMENTS; TERMINATION

28. This Agreement and any amendments thereto shall become effective upon

obtaining written approval of the Regulatory Commission of Alaska.

29. This Agreement shall remain in effect through December 31, 2027 unless if

terminated earlier as provided in paragraph 30 below. This Agreement may

be extended for additional ten (10) year terms by agreement of the Parties

provided ASD provides written notice to Chugach of its desire to extend this

agreement 120 days prior to the expiration date.

30. This Agreement is non-transferable and may be amended or terminated at any

time by either Chugach or ASD upon thirty days written notice, unless

otherwise agreed to by the Parties. All amendments must be in writing signed

by both Parties. All amendments and any termination prior to the expiration

of the term hereof will not become effective until approved by the

Commission.

31. When the Agreement expires or is terminated, the Chugach secondary

facilities connecting the Generator to the Chugach primary facilities, and all

control circuits associated with isolating the Chugach Distribution System

shall be permanently removed. The ASD shall reimburse Chugach for any of

its costs associated with those removals.

SECTION 8: MISCELLANEOUS PROVISIONS

32. RCA Authority

The Parties understand that, in accordance with 3 AAC 48.390(a), to the

extent that the provisions of this Agreement differ from or supplement in non-

November 3, 2017 Page 9 of 20

incidental ways the terms and provisions of the Chugach Tariff, those portions

of this Agreement cannot be implemented other than pursuant to the Chugach

Tariff until this Agreement is approved by the RCA and, notwithstanding

anything to the contrary contained herein, this Agreement is at all times

subject to revision by the Commission.

33. Representations and Warranties

Each individual signing this Agreement represents that he/she is duly

authorized to execute this Agreement on behalf of the Party for whom he/she

is signing and that upon his/her execution hereof the Party for whom he/she is

signing will become legally and validly bound to this Agreement.

34. Indemnification

Each Party shall, as to all actions taken relevant to this Agreement, indemnify

and hold harmless the other Party, its directors, officers and employees,

against all costs, loss, damage, legal expense and liability to third persons

arising from any injury to, or death of, persons or injury to property to the

extent caused by any act or omission of the indemnifying Party, or its

directors, officers, agents, or employees. Except to the extent prohibited by

law, ASD shall, at all times during the term of this Agreement, indemnify,

defend, and hold harmless Chugach and its directors, officers, employees, and

agents from and against any and all claims, demands, actions, causes of

action, damages, or losses of third parties arising out of, or resulting in any act

or omission of ASD, including but not limited to any claims, demands,

actions, causes of action, damages or losses, including property damages,

personal injury or death, for any power delivered to parties by ASD during

November 3, 2017 Page 10 of 20

emergency or testing situations via the Generator, including but not limited to

power delivered by ASD to AWWU and the MOA, at Delivery Points within

the Service High School Complex hereunder.

35. No Waiver or Estoppel

The failure of a Party to insist on the strict performance of any provision of

this Agreement or to exercise any right, power, or remedy upon a breach

thereof shall not constitute a waiver of the same or of any other provision of

this Agreement, and shall not estop the Party from enforcing said provision or

any other provision of this Agreement or from exercising any right, power, or

remedy upon the breach or any other breach of this Agreement.

36. No Third Party Beneficiaries

The Parties hereby agree that by entering into this Agreement neither Party

has created any obligation for the benefit of any third party, promised any

performance to any third party, or otherwise created or vested in any third

party a right to enforce all or any portion of this Agreement.

37. Governing Law

This Agreement shall be interpreted, construed, and enforced in accordance

with, and otherwise governed in all respects by, the laws of the State of

Alaska, with venue being appropriate in Anchorage.

38. Severability

The provisions of this Agreement are not intended to be considered in

isolation. Each provision represents a portion of the consideration agreed

upon among the Parties for each other provision of this Agreement. The

Parties believe that it would be impossible, in general, to invalidate or sever

November 3, 2017 Page 11 of 20

any particular provision of this Agreement without working a potentially great

hardship on one or the other of the Parties, and without denying one or both of

the Parties of important, bargained for consideration. Thus, if after this

Agreement has become effective, any provision of this Agreement shall be

finally adjudicated by any court or government agency with jurisdiction over

the subject matter to be invalid or unenforceable, or if any government agency

with authority over the Parties requires changes to this Agreement then either

Party may terminate this Agreement pursuant to Section 7. If, however,

neither Party terminates this Agreement pursuant to Section 7, any provision

found to be invalid or unenforceable shall be deemed to be severed from this

Agreement and any changes required to be made to this Agreement shall be

deemed made, and this Agreement as so modified shall continue in effect.

39. Insurance

Each Party agrees to obtain and maintain in full force and effect during the

term of this Agreement, adequate insurance (or an equivalent self-insurance

program) with responsible insurers as may be required by law and as are

appropriate to the operations contemplated herein.

40. Notices

Except as otherwise provided in this Agreement, all notices under this

Agreement shall be in writing and hand-delivered, faxed, or sent by certified

mail, return receipt requested, to the following:

November 3, 2017 Page 12 of 20

To Chugach:

Chief Executive Officer

Chugach Electric Association, Inc.

5601 Electron Drive

P.O. Box 196300

Anchorage, AK 99519-6300

Fax No. 907-762-4514

To ASD:

Chief Operating Officer

Anchorage School District

5330 East Northern Lights Blvd.

Anchorage, AK 99504-3135

November 3, 2017 Page 13 of 20

SECTION 9: DEFINITIONS

41. Agreement

Isolated Operating Agreement for Government-Owned Disaster Preparedness

Generation Facilities between Chugach Electric Association, Inc. and the

Anchorage School District.

42. Anchorage School District (ASD) Equipment

Any equipment or facility located within the Service High School Complex

owned by the Anchorage School District.

43. Chugach Equipment

Any equipment or facility located within the Service High School Complex

owned by Chugach Electric Association, Inc.

44. Delivery Points

The delivery points identified in Section 6, whereby ASD receives delivery of

electric power from Chugach or from ASD’s Generator.

45. Disaster Preparedness Generator

ASD-owned Generator with a prime power rating of 1.250 megawatts at 60

Hz, located at the Service High School Complex.

46. Distribution System

A system consisting of both primary and secondary facilities, which

transports, delivers, and meters electrical energy.

47. Electrical Supply Grid

The system of interconnected generation stations, transmission lines, and/or

Distribution Systems used to deliver electric power.

November 3, 2017 Page 14 of 20

48. Emergency Situation

Is any natural or man-made disaster, or urgent or critical situation of a

temporary nature under which ASD is responsible to retain students for their

safety within the Service High School Complex. In such situations, and where

Chugach is not able to provide electrical service from its Distribution

System, the provisions of this Agreement allow ASD to utilize its Generation

facilities to energize and transmit electrical power through the Chugach

distribution system serving the delivery points in the Service High School

Complex. Such situations may be declared by the State of Alaska Office of

Homeland Security and Emergency Services or the Municipality of

Anchorage Office of Emergency Management through the Emergency Alert

System.

49. Governmental Entities

Entities that receive electric service from Chugach at the Service High School

Complex. These entities are ASD and the Municipality of Anchorage, d/b/a

Anchorage Water and Wastewater Utility.

50. Isolate

To electrically separate a portion of the Chugach Distribution System from the

Chugach Electrical Supply Grid.

51. Parallel Operation

The operation of a customer owned generator while electrically connected to

the Chugach Electrical Supply Grid. Under this condition, power can either

flow from the Chugach system to the generating facility or vice versa.

November 3, 2017 Page 15 of 20

52. Primary Facilities

Chugach-owned equipment operated at the 7,200 / 12,470 Volt (three-phase)

level that serves and is within the Service High School Complex.

53. Prudent Utility Practice

At a particular time any of the practices, methods and acts engaged in or

approved by a significant portion of the electric utility industry at such time,

or which in the exercise of reasonable judgment in light of facts known at

such time, could have been expected to accomplish the desired results at the

lowest reasonable cost consistent with good business practices, reliability,

safety and reasonable expedition. Prudent Utility Practice is not required to

be the optimum practice, method or act to the exclusion of all others, but

rather to be a spectrum of possible practices, methods or acts which could

have been expected to accomplish the desired result at the lowest reasonable

cost consistent with reliability, safety and expedition. Prudent Utility Practice

includes due regard for manufacturer’s warranties and the requirements of

Governmental Agencies of competent jurisdiction and shall apply not only to

functional parts of the Parties’ generation, transmission, and distribution

facilities, but also to appropriate structures, landscaping, painting, signs,

lighting and other facilities.

54. Secondary Facilities

Chugach-owned equipment within the Service High School Complex operated

at the 120/240 Volt (single-phase), 120/208 Volt (three-phase), and 277/480

Volt (three-phase) levels.

55. Service High School Complex

Land, buildings, and other infrastructure located at Service High School. 5577

Abbotl Road, Anchorage, Alaska. Attachment B contains a map of the

Service High School Complex, including the location of the Generator.

CHUGACH ELECTRIC ASSOCIATION, INC.

By_~~ Leeff. Thibert

OL DISTRICT

I By L'~~~~po~~~~-­Darin Hargraves Senior Director of Operations and Maintenance

Date : J / } h / I J I I

~ORA6E SCHOOL DISTRICT

~~y \\ -1 2.-L Thomas J. Roth Chief Operating Office1

Date: tJ ov t. 1. C I l

~ ovcmbcr 3. 20 17 Page 16 of20

November 3, 2017 Page 17 of 20

Attachment A:

Power Emergency Sequence of Operations for

Service High School Disaster Preparedness Generator

Automatic Source Transfer Sequence from Chugach to ASD Generator:

1. Upon loss of Chugach source potential on all three phases, sensed at Chugach’s SC

839 Way-1, switch 14090, the Chugach control relay will initiate a 3-minute

delayed trip at SC 839 Way-1. Simultaneously the ASD generator transfer control

will initiate a 5-minute delay to allow for recovery of Chugach source potential.

2. After 3-minutes, if Chugach source potential is not restored on all three phases at

SC 839 Way-1, switch 14090, the Chugach control relay will automatically open

SC 839 Way-1.

3. After 5-minutes, if Chugach source potential is not restored on all three phases at

SC 839 Way-1, the ASD controller will start the ASD generator.

4. After the generator is running and the ASD transfer control has verified that SC

839 Way-1, switch 14090 is in the open position (all three-phases) the ASD

transfer control will send a close signal to SC 839 Way-2 switch 14091 completing

the transfer sequence from Chugach source to the ASD generator.

Manual Source Transfer Sequence to Restore Chugach Supply:

1. Upon restoration of Chugach source potential on all three phases, at SC 839 Way-

1, switch 14090, Chugach dispatch will receive indication that system voltage is

normal. The ASD transfer control will illuminate three lights within the ASD

generator control cabinet (indicating that Chugach source potential is available).

The ASD generator will provide power until communication can be established

between the local ASD personnel and Chugach dispatch for a controlled transfer to

return to Chugach power.

2. Under normal operating protocol Chugach dispatch will contact ASD using the

ASD provided contact information. When communication is established the

voltage on all three phases at SC 839 Way-1, switch 14090 will be verified and

Chugach dispatch will assess whether to transfer back remotely from dispatch or

locally utilizing Chugach line personnel.

3. The controlled transfer sequence is to open SC 839 Way-2, switch 14091 and close

Way-1 switch 14090 to restore the Chugach source power. The generator will

continue to run and voltage may be present at SC 839 Way 2 until the generator

has completed the 10-minute shutdown period.

November 3, 2017 Page 18 of 20

Attachment B

� Service High School Complex Map

� Interconnection One-Line Diagram – Service High School Disaster

Preparedness Generator Project

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ABBOTT ROAD

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TIIO

· GENERATOR WILL AUTOMATICALLY ENERGIZE PRIM RY LOOP THROUGHOUT SERVICE HIGHS HOOL SITE WHEN LOSS OF THREE PHAS POWER TO SC 839.

·TO MANUALLY R STORE POWER OR TROUBLE SHOO COORDINATE WITH DISPATCH.

,,. .. AUTUMN RIDGE

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