powering alaska's future · commissioners tllriff advice no. 489-8 june 19, 2020 page 2 of 6...

June 19, 2020

Regulatory Commission of Alaska 701 W. 8th Avenue, Suite 300 Anchorage, Alaska 99501

.. ~ ....... CHUGACH--

POWERING ALASKA'S FUTURE

ELECTRONICALLY FILED WITH RCA

Subject: Tariff Advice No. 489-8; Chugach Electric Association, Inc. Fuel and Purchase Power Rate Adjustments Effective Third Quarter, 2020

Commissioners:

The tariff filing described below is 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. The purpose of this filing is to adjust Chugach Electric Association, Inc. 's (Chugach) fuel and purchased power cost adjustment factors and non-firm power rates for qualified cogeneration and small power production facilities for rates effective July 1, 2020.

TARIFF SHEET NUMBER CANCELS SHEET NUMBER SCHEDULE OR ORIGINAL REVISED ORIGINAL REVISED RULE NUMBER

94 159th Revision 94 158th Revision Fuel & Purchased

94.04 39th Revision 94.04 38th Revision Power Adjustment

94.05 51 st Revision 94.05 50th Revision Factors at G&T,

94.1 97th Revision 94.1 96th Revision Retail Primary,

94.1.1 36th Revision 94.1.1 35 th Revision and Retail Secondary

95 157th Revision 95 156th Revision Actual Fuel &

95.04 37th Revision 95.04 3 6th Revision Purchased Power

95.05 48th Revision 95.05 4 7th Revision Cost Schedules

95.5 95th Revision 95.5 94th Revision Purchase & Sales Q.F.

97 141 st Revision 97 140th Revision Fuel &

97.1.4 4th Revision 97.1.4 3rd Revision Purchased Power

97.5.2 4th Revision 97.5.2 3rd Revision Adjustment

97.6.1 4th Revision 97.6.1 3rd Revision Factors History

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

Chugach Electric Association, Inc 5601 Electron D,ive. PO Box 196300 Anchorage Alaska 99519-6300 • (907) 563-1494 Fax (901) 562-0027 ~ (1300) 478-7494

www chugachelectric com " info@chugacheiectnc com

Commissioners Tllriff Advice No. 489-8

June 19, 2020 of 6

adversely impact customers or the public. Approximately 69,362 Chugach retail members (81,874 retail metered locations) and wholesale customer Seward Electric System (Seward) are impacted by this filing. This filing reflects actual fuel and purchased power costs in first quarter 2020 and projected costs through third quarter 2020.

Summary of Results

With the implementation of these rates, the total monthly bill for a Chugach residential customer using 600 kWh of electricity will decrease approximately 0.07 percent, or from $130.94 to $130.85. One of the primary factors driving the reduction is a decline in the under-recovery in the balancing account from $3.0 million to $0.7 million. Additionally, Chugach's cost is projected to remain relatively constant at $57 per MWh. Chugach's projected revenue for calendar-year 2020 is $224 million. 1

The proposed third quarter 2020 retail fuel and purchased power rates are summarized in Table 1 below.

Table 1: Third Quarter 2020 Chugach Retail Fuel and Purchased Power Rate Adjustment Factors

Retail Service No. of

Fuel Rate Purchased FIW Adj.

Total Meters Power Rate Factor

Primary Service 20 $0.04333 $0.02271 $0.00201 $0.06805

Secondary Service 81,854 $0.04365 $0.02289 $0.00203 $0.06857

Chugach's proposed rate for non-firm purchases from qualified facilities that have a nameplate capacity of 200 kW or less is $0.04916 per kWh at transmission voltage, $0.05498 per kWh at distribution primary voltage, and $0.05539 per kWh at distribution secondary voltage. Fuel and purchased power rates are not calculated for Seward because they are billed monthly based on actual cost.

Table 2 below summarizes Chugach's purchase price (firm requirements) of natural gas for first and second quarter 2020 from Hilcorp Alaska, LLC and from Chugach's ownership interest in the Beluga River Unit (BRU). The gas transfer price for BRU gas in third quarter 2020 reflects the gas transfer price adjustment filed in Tariff Advice No. 488-8.2

Table 2: Summary of Chugach Natural Gas Supply Prices

Gas Supplier Contract Q2 2019 Q3 2020

Hilcorp Alaska, LLC (1/1/2015 -3/31/2028) Firm $7.49 $7.49

Chugach Electric Association, Inc. - BRU Owned $3.05 $5.10

1 This estimate does not include projected incremental revenues if the acquisition ofML&P is approved. 2 Tariff Advice No. 488-8 was submitted to the Commission June 10, 2020 with a proposed effective date of July 25, 2020.

Commissioners Tariff Advice No. 489-8

Natural Gas Storage

June 19, 2020 of 6

Table 3 summarizes Chugach's gas storage activity, excluding gas exchanges, on a volumetric (Met) basis for the 12-months ending March 31, 2020.

Table 3: Volume of Gas in Storage (Met)

Month Purchased Fuel Gas Net Injections Withdrawals Balance

Apr-19 46,440 511 53,763 37,840 1,280,215

May-19 58,498 644 57,854 8,065 1,330,005

Jun-19 48,239 531 47,708 70,096 1,307,617

Jul-19 35,370 531 34,839 140,078 1,202,378

Aug-19 38,002 570 45,615 97,563 1,150,430

Sep-19 103,572 1,554 102,019 43,242 1,209,207

Oct-19 254,245 3,814 250,431 24,419 1,435,219

Nov-19 206,267 3,094 223,173 39,827 1,618,565

Dec-19 91,265 1,369 141,239 168,376 1,591,428

Jan-20 2,626 39 2,587 313,695 1,280,320

Feb-20 13,702 206 13,497 113,096 1,180,720

Mar-20 20,738 311 20,427 72,216 1,128,931

Table 4 summarizes the value of the gas in storage, excluding gas exchanges. As of March 31, 2020, gas in storage totaled 1,128,931 Mcf at a value of $8,672,047 for an average weighted price of $7.68 per Mcf.

Table 4: Total Value of Gas in Storage (Dollars)

Cumulative Average Weighted Month In_jections Withdrawals Balance Price Apr-19 $364,352 $290,957 $9,794,721 $7.65

May-19 $460,531 $71,860 $10,188,233 $7.66

Jun-19 $378,551 $563,669 $10,003,190 $7.65

Jul-19 $275,714 $1,116,426 $9,226,140 $7.67

Aug-19 $296,113 $753,918 $8,778,602 $7.63

Sep-19 $772,336 $331,625 $9,222,183 $7.63

Oct-19 $1,966,517 $201,276 $10,986,358 $7.65 Nov-19 $1,778,056 $304,869 $12,456,387 $7.70 Dec-19 $1,121,554 $1,327,110 $12,250,350 $7.70 Jan-20 $21,688 $2,455,182 $9,816,563 $7.67 Feb-20 $111,995 $867,822 $9,059,549 $7.67

Mar-20 $167,340 $554,106 $8,672,047 $7.68

Commissioners Tarif{Advice No. 489-8

Fire Island Wind - MWh Purchases

June 19, 2020 .of 6

Chugach purchased a total of 12,816 MWh from the Fire Island Wind project during first quarter 2020, of which 0.3 MWh were curtailed during times when resources to offset unexpected wind production were unavailable. Table 5 summarizes monthly wind purchases, curtailments and capacity factors for the 12-month period ending March 2020.

Table 5: Summary of Fire Island Wind Generation

Capacity MWh Delivered MWh Curtailed Total MWh

Month (Real and Factor (Real Energy) (Deemed Energy)

Deemed) Apr-19 29% 3,676.81 197.80 3,874.62 May-19 39% 5,132.87 312.07 5,444.94 Jun-19 12% 1,458.66 120.13 1,578.78 Jul-19 10% 1,321.72 170.65 1,492.37

Aug-19 9% 1,203.23 730.39 1,933.62

Sep-19 20% 2,533.17 589.25 3,122.42 Oct-19 39% 5,145.32 51.53 5,196.85 Nov-19 49% 6,211.32 46.12 6,257.44 Dec-19 47% 6,122.69 6.05 6,128.74 Jan-20 34% 4,397.79 0.01 4,397.80 Feb-20 42% 5,161.28 0.29 5,161.57 Mar-20 25% 3,257.09 0.02 3,257.11 Total 29.6% 45,621.94 2,224.30 47,846.24

Since inception, the capacity factor of the Fire Island Wind project has averaged 32 percent and Chugach has curtailed approximately 7 percent of the project energy. The capacity factor is calculated by dividing total MWh Delivered by the maximum possible MWh the project could produce if operating at its full capacity of 17.6 MW.

Supporting Exhibits and Attachments

The following exhibits and attachments support the development of the fuel, purchased power and avoided cost rates contained in this filing:

Exhibit 1: Presents projected energy sales for the upcoming quarter and projected generation and purchase power requirements to meet the sales forecast. These projections are based on recent cost and line loss experience.

Exhibit 2: Presents energy sales by class and the average retail line loss factor for the past four quarters.


June 19, 2020 of 6

Exhibit 3: Presents the MWh generation of each of Chugach's generation units and energy purchases for the past four quarters. Station service has been deducted to arrive at net generation and purchases.

Exhibit 4: Presents the quantities of gas used at each of Chugach's generation plants (except Cooper Lake and Eklutna Hydro) for the past four quarters.

Exhibit 5: Summarizes the past quarter's economy energy sales and wheeling transactions.

Exhibit 6: Summarizes the past quarter's monthly fuel and purchased power cost transactions.

Exhibit 7: Summarizes actual and projected balancing accounts on a customer class basis.

Exhibits 8 through 10: Support the monthly balances referenced in Exhibit 7.

Exhibit 11: Summarizes the monthly fuel in storage account balance with the calculation of weighted average unit cost and includes a summary of gas storage transactions for Firm Storage Service, Interruptible Storage Service and gas exchanges.

Attachment A: Contains supporting invoices for economy energy sales, wheeling transactions and exchange transactions for the past quarter.

Attachments B through D: Contain supporting invoices for each month of the quarter for fuel, gas transportation and purchased power costs.

Attachment E: Contains the detailed calculations of the avoided costs on an hourly basis and summarizes the difference between the average quarterly rates charged to customers under Tariff Sheet No. 97 against the calculated hourly avoided costs. In this filing, the calculated hourly rates were formulated using meter data from the prior quarter. Any variance will be captured in the next quarterly filing.

Tariff Sheet Changes

The following tariff sheets reflect the proposed rate changes contained in this filing.

Tariff Sheet Nos. 94, 94.04, and 94.05: These Tariff Sheets present itemized fuel and purchased power costs and projected MWh sales to arrive at the cost per kWh sold at the generation and transmission level.

Tariff Sheet Nos. 94.1 and 94.1.1: These Tariff Sheets establish the Chugach retail fuel and purchased power recovery rates by adjusting the retail G&T rate ( calculated on Sheet Nos. 94 and 94.05) to reflect recovery levels from primary and secondary voltage deliveries at the distribution level.

Tariff Sheet Nos. 95, 95.04, and 95.05: These Tariff Sheets summarize actual fuel and purchased power costs for the quarter on a customer class basis.


June 19, 2020 Pag 6 of 6

Tariff Sheet No. 95.5: This Tariff Sheet summarizes both actual recorded and projected costs on a total and unit cost basis. ·

Tariff Sheet No. 97: This Tariff Sheet reflects updated non-firm power rates for cogenerators and small power producers. The fuel and purchased power expense on line 1 is the sum of total fuel and purchased power expense, less economy fuel costs, as reflected on Sheet Nos. 94 and 94.05.

Tariff Sheet No. 97.1.4: This Tariff Sheet is a continuation of Sheet Nos. 97.1, 97.1.1, 97.1.2, and 97.1.3. These sheets provide a history of the Chugach Fuel and Purchased Power Cost Adjustment Factor from July 1, 1987 (inception date of the current tariff) through the rates currently proposed. A new line has been added to include the rates for fuel, purchased power, and the Fire Island Wind renewable energy factor, for Retail customers, effective July 1, 2020.

Tariff Sheet No. 97.5.2: This Tariff Sheet is a continuation of Sheet No. 97.5 and Tariff Sheet No. 97.5.1. Tariff Sheet No. 97.5 was divided onto Tariff Sheet Nos. 97.5 and 97.6 in the fourth quarter 2011 Fuel and Purchased Power Cost Adjustment filing, to separate service at primary and secondary voltage levels. This sheet provides a history of Chugach's retail fuel and purchased power cost rates for delivery at primary voltage levels. A new line has been added to include the rates for fuel, purchased power, and the Fire Island Wind renewable energy factor, for Primary service customers, effective July 1, 2020.

Tariff Sheet No. 97.6.1: This Tariff Sheet is a continuation of Sheet Nos. 97.5 and 97.6. This sheet provides a history of Chugach's retail fuel and purchased power cost rates for delivery at secondary voltage levels. A new line has been added to include the rates for fuel, purchased power, and the Fire Island Wind renewable energy factor, for Secondary service customers, effective July 1, 2020.

Please contact Jean Kornmuller in Chugach's Regulatory Affairs and Pricing Department at 907-762-4184 or jean_ [email protected], if additional information is needed.

Sincerely,

CHU GACH ELECTRIC ASSOCIATION, INC.

Arthur W. Miller Executive Vice President, Regulatory and External Affairs P.O. Box 196300 Anchorage, Alaska 99519-6300 Telephone: 907-762-4758 Facsimile: 907-762-4191 arthur _ [email protected]

Attachments

cc: John Foutz, City of Seward (electronically)

RCA NO.: 8 159th Revision Sheet No. 94

Canceling

158th Revision Sheet No. 94

Chugach Electric Association, Inc.

FUEL AND PURCHASED POWER ADJUSTMENT FACTORS AT G&T

e.1. Fuel Adjustment Factor: Predicted costs for the quarter beginning July 1, 2020

Description Total Retail SewardFuel ExpenseBeluga-BRU (Chugach) $0 $0 $0 AIX Energy, LLC (4/2016-3/2024) $0 $0 $0 Hilcorp Alaska, LLC (1/2015-3/2028) $0 $0 $0 Cook Inlet Energy (2014-3/2023) $0 $0 $0 Furie (5/2017 - 3/2033) $0 $0 $0IGT - BRU (Chugach) $0 $0 $0 AIX Energy, LLC (4/2016-3/2024) $0 $0 $0 Hilcorp Alaska, LLC (1/2015-3/2028) $0 $0 $0 Cook Inlet Energy (2014-3/2023) $0 $0 $0 Furie (5/2017 - 3/2033) $0 $0 $0 SPP - BRU (Chugach) $862,471 $817,486 $44,985 AIX Energy, LLC (4/2016-3/2024) $0 $0 $0 Hilcorp Alaska, LLC (1/2015-3/2028) $9,987,885 $9,466,934 $520,951 Cook Inlet Energy (2014-3/2023) $0 $0 $0 Furie (5/2017 - 3/2033) $0 $0 $0 Emergency Generator Fuel $0 $0 $0 CINGSA - FSS Capacity and Withdrawal Fees $1,227,228 $1,163,218 $64,010 CINGSA - ISS Capacity and Withdrawal Fees $0 $0 $0 CINGSA - Gas Withdrawn $40,590 $38,473 $2,117 Gas Transportation and Compression $1,187,859 $1,125,902 $61,957 Total Fuel and Transportation Expense $13,306,034 $12,612,014 $694,020

Less Credits Economy Fuel / Transportation Costs $0 $0 $0 Economy Margins $0 $0 $0 Gas Exchange Contributions (Tesoro and Furie) ($104,100) ($98,670) ($5,430) Wheeling Revenue ($487,602) ($462,169) ($25,432) Subtotal ($591,702) ($560,840) ($30,862)

Net Fuel Expense $12,714,332 $12,051,174 $663,158Generation & Purchases (MWh) 297,015.0 282,062.5 14,952.5Cost per MWh at Generation $42.81 $42.73 $44.35

Projected Balances as of October 1, 2020 ($1,408,468) ($1,408,468) $0

Fuel Expense to be Recovered at G&T $11,305,864 $10,642,706 $663,158Predicted Sales at G&T (MWh) 289,271.2 274,708.6 14,562.6

Fuel Adjustment Factor per kWh at G&T $0.03908 $0.03874 ----* I, I* Not calculated. Seward is billed for actual fuel and purchased power costs on a monthly basis.

Tariff Advice No.: 489-8 Effective: July 1, 2020

Issued by: Chugach Electric Association, Inc. P.O. Box 196300, Anchorage, Alaska 99519-6300

By: Lee D. Thibert Title: Chief Executive Officer

RC

A N

O.:

8

39

th R

evis

ion

She

et N

o.

94.0

4

C

ance

ling

3

8th R

evis

ion

She

et N

o.

94.0

4

Chu

gach

Ele

ctric

Ass

ocia

tion,

Inc.

FUE

L A

ND

PU

RC

HA

SED

PO

WE

R A

DJU

STM

EN

T F

AC

TO

RS

AT

G&

T (C

ON

TIN

UE

D)

e.2.

Pur

chas

ed P

ower

Adj

ustm

ent F

acto

r: P

redi

cted

cos

ts fo

r the

qua

rter b

egin

ning

July

1, 2

020

Des

crip

tion

Tota

lR

etai

lSe

war

dPu

rcha

sed

Pow

er E

xpen

se B

radl

ey L

ake

Purc

hase

s$1

,863

,891

$1,7

66,6

74$9

7,21

7 B

ase

FIW

Ren

ewab

le R

esou

rce

Cos

t$1

,002

,980

$1,0

02,9

80$0

Oth

er P

urch

ases

$878

,945

$833

,100

$45,

844

S

ubto

tal

$3,7

45,8

16$3

,602

,754

$143

,062

Le

ss P

urch

ased

Pow

er C

redi

ts

Ren

ewab

le E

nerg

y C

ertif

icat

es$0

$0$0

Whe

elin

g R

even

ue($

137,

266)

($13

0,10

7)($

7,16

0)

Sub

tota

l($

137,

266)

($13

0,10

7)($

7,16

0)

Net

Pur

chas

ed P

ower

Exp

ense

$3,6

08,5

49$3

,472

,647

$135

,902

Gen

erat

ion

& P

urch

ases

(MW

h)29

7,01

528

2,06

314

,952

Cos

t per

MW

h at

Gen

erat

ion

$12.

15$1

2.31

$9.0

9

Pr

ojec

ted

Bal

ance

s as o

f Oct

ober

1, 2

020

$2,1

07,7

11$2

,107

,711

$0

Purc

hase

d Po

wer

Exp

ense

to b

e R

ecov

ered

$5,7

16,2

60$5

,580

,358

$135

,902

Pred

icte

d Sa

les a

t G&

T (M

Wh)

289,

271.

227

4,70

8.6

14,5

62.6

Pu

rcha

sed

Pow

er A

djus

tmen

t Fac

tor

per

kW

h at

G&

T$0

.019

76$0

.020

31---

-*R

, R

* N

ot c

alcu

late

d. S

ewar

d is

bill

ed fo

r act

ual f

uel a

nd p

urch

ased

pow

er c

osts

on

a m

onth

ly b

asis

.Ta

riff A

dvic

e N

o.: 4

89-8

Effe

ctiv

e: J

uly

1, 2

020

Issu

ed b

y:

C

huga

ch E

lect

ric A

ssoc

iatio

n, In

c.

P.

O. B

ox 1

9630

0, A

ncho

rage

, Ala

ska

9951

9-63

00

By:

Le

e D

. Thi

bert

Title

: C

hief

Exe

cutiv

e O

ffic

er

'

RCA NO.: 8 51st Revision Sheet No. 94.05

Canceling

50th Revision Sheet No. 94.05

Chugach Electric Association, Inc.FUEL AND PURCHASED POWER ADJUSTMENT FACTORS AT G&T (CONTINUED)

e.3. Incremental Fire Island Wind Adjustment Factor: Predicted costs for the quarter beginning July 1, 2020

Description Total Retail Seward

Predicted FIW Purchases (MWh) 10,340.0 10,340.0 ---- Purchased Power Rate $97.00 $97.00 ---- Total FIW Purchased Power Cost $1,002,980 $1,002,980 ----

Chugach Avoided Energy Cost at G&T (MWh) $49.15 $49.15 ---- Estimated Cost Avoided Due to FIW Purchases $508,181 $508,181 ---- Fire Island Wind Cost Differential $494,799 $494,799 ---- Chugach Retail Generation & Purchases (MWh) 282,062.5 282,062.5 ---- Cost per MWh at Generation $1.75 $1.75 ---- Predicted Sales at G&T (MWh) 274,708.6 274,708.6 ---- FIW Adjustment Factor per kWh at G&T $0.00180 $0.00180 ----

e.4. Summary of fuel and purchased power cost adjustment factors at G&T for rates effective July 1, 2020

Fuel & Purch. Pwr Costs to be Recovered $16,817,681 $16,018,621 $799,060Generation & Purchases (MWh) 297,015.0 282,062.5 14,952.5Cost per MWh at Generation $56.62 $56.79 ----

Projected Balances as of October 1, 2020 $699,243 $699,243 $0

Total Costs Recovered at G&T $17,516,924 $16,717,864 $799,060 Predicted Sales at G&T (MWh) 289,271.2 274,708.6 14,562.6 Fuel and Purchased Power Adjustment Factor per kWh at G&T $0.06056 $0.06086 ---- * R, R* Not calculated. Seward is billed for actual fuel and purchased power costs on a monthly basis.



By: Lee T. Thibert Title: Chief Executive Officer

RC

A N

O.:

8

97

th R

evis

ion

She

et N

o.

94.1

C

ance

ling

96th

Rev

isio

n

Shee

t No.

94

.1

Chu

gach

Ele

ctric

Ass

ocia

tion,

Inc.

FUE

L A

ND

PU

RC

HA

SED

PO

WE

R C

OST

AD

JUST

ME

NT

FA

CT

OR

S A

TR

ET

AIL

DE

LIV

ER

Y:

PRIM

AR

Y S

ER

VIC

E

e.5.

Chu

gach

reta

il fu

el a

nd p

urch

ased

pow

er a

djus

tmen

t fac

tors

for r

ates

effe

ctiv

e Ju

ly 1

, 202

0

1. T

otal

Chu

gach

Ret

ail F

uel a

nd P

urch

ased

Pow

er C

ost R

ecov

ery

$16,

717,

864

2. R

etai

l Fue

l Adj

ustm

ent F

acto

r per

kW

h at

G&

T$0

.038

743.

Ret

ail P

urch

ased

Pow

er A

djus

tmen

t Fac

tor p

er k

Wh

at G

&T

$0.0

2031

4. F

ire Is

land

Win

d A

djus

tmen

t Fac

tor p

er k

Wh

at G

&T

$0.0

0180

5. C

huga

ch R

etai

l Ser

vice

at P

rimar

y V

olta

ge

A.

Fuel

Adj

ustm

ent F

acto

r

a) P

rimar

y kW

h Sa

les a

t G&

T13

,199

,025

.0

b)

Fue

l Cos

t Rec

over

y - P

rimar

y V

olta

ge$5

11,3

30

c) P

rimar

y kW

h Sa

les a

t Del

iver

y11

,801

,780

.0

d)

Fue

l Adj

ustm

ent F

acto

r per

kW

h at

Prim

ary

(b /

c)$0

.043

33

I

(Per

cent

Prim

ary

Dis

tribu

tion

Loss

es a

t G&

T: 1

0.59

%)

B.

Purc

hase

d Po

wer

Adj

ustm

ent F

acto

r

a) P

rimar

y kW

h Sa

les a

t G&

T13

,199

,025

.0

b)

Pur

chas

ed P

ower

Cos

t Rec

over

y - P

rimar

y V

olta

ge$2

68,0

72

c) P

rimar

y kW

h Sa

les a

t Del

iver

y11

,801

,780

.0

d)

Pur

chas

ed P

ower

Adj

ustm

ent F

acto

r per

kW

h at

Prim

ary

(b /

c)$0

.022

71R

C.

Fire

Isla

nd W

ind

Ren

ewab

le E

nerg

y A

djus

tmen

t Fac

tor

a)

Prim

ary

kWh

Sale

s at G

&T

13,1

99,0

25.0

b) F

IW C

ost D

iffer

entia

l - P

rimar

y V

olta

ge$2

3,75

8

c) P

rimar

y kW

h Sa

les a

t Del

iver

y11

,801

,780

.0

d)

FIW

Ren

ewab

le E

nerg

y A

djus

tmen

t Fac

tor p

er k

Wh

at P

rimar

y (b

/ c)

$0.0

0201

I

D.

Tota

l Ret

ail S

ervi

ce a

t Prim

ary

Vol

tage

Del

iver

y$0

.068

05

R

Tarif

f Adv

ice

No.

: 489

-8Ef

fect

ive:

Jul

y 1,

202

0

Is

sued

by:

C

huga

ch E

lect

ric A

ssoc

iatio

n, In

c.

P.

O. B

ox 1

9630

0, A

ncho

rage

, Ala

ska

9951

9-63

00

B

y:

Lee

D. T

hibe

rtTi

tle:

Chi

ef E

xecu

tive

Offi

cer

'

RC

A N

O.:

8

36

th R

evis

ion

She

et N

o.

9

4.1.

1

C

ance

ling

3

5th R

evis

ion

She

et N

o.

94.1

.1

Chu

gach

Ele

ctric

Ass

ocia

tion,

Inc.

FU

EL

AN

D P

UR

CH

ASE

D P

OW

ER

CO

ST A

DJU

STM

EN

T F

AC

TO

RS

AT

RE

TA

IL D

EL

IVE

RY

: SE

CO

ND

AR

Y S

ER

VIC

E

e.6.

Chu

gach

reta

il fu

el a

nd p

urch

ased

pow

er a

djus

tmen

t fac

tors

for r

ates

effe

ctiv

e Ju

ly 1

, 202

0

6. C

huga

ch R

etai

l Ser

vice

at S

econ

dary

Vol

tage

A

. Fu

el A

djus

tmen

t Fac

tor

a)

Sec

onda

ry k

Wh

Sale

s at G

&T

261,

509,

547.

0

b) F

uel C

ost R

ecov

ery

- Sec

onda

ry V

olta

ge$1

0,13

0,88

0

c) S

econ

dary

kW

h Sa

les a

t Del

iver

y23

2,08

4,65

7.6

d)

Fue

l Adj

ustm

ent F

acto

r per

kW

h at

Sec

onda

ry (b

/ c)

$0.0

4365

I

(Per

cent

Sec

onda

ry D

istri

butio

n Lo

sses

at G

&T:

11.

25%

)

B

. Pu

rcha

sed

Pow

er A

djus

tmen

t Fac

tor

a)

Pre

dict

ed S

econ

dary

kW

h Sa

les a

t G&

T26

1,50

9,54

7.0

b)

Pur

chas

ed P

ower

Cos

t Rec

over

y - S

econ

dary

Vol

tage

$5,3

11,2

59

c) P

redi

cted

Sec

onda

ry k

Wh

Sale

s at D

eliv

ery

232,

084,

657.

6

d) P

urch

ased

Pow

er A

djus

tmen

t Fac

tor p

er k

Wh

at S

econ

dary

(b /

c)$0

.022

89R

C.

Fire

Isla

nd W

ind

Ren

ewab

le E

nerg

y A

djus

tmen

t Fac

tor

a)

Pre

dict

ed S

econ

dary

kW

h Sa

les a

t G&

T26

1,50

9,54

7.0

b)

FIW

Cos

t Diff

eren

tial -

Sec

onda

ry V

olta

ge$4

70,7

17

c) P

redi

cted

Sec

onda

ry k

Wh

Sale

s at D

eliv

ery

232,

084,

657.

6

d) F

IW R

enew

able

Ene

rgy

Adj

ustm

ent F

acto

r per

kW

h at

Sec

onda

ry (b

/ c)

$0.0

0203

I

D.

Tota

l Ret

ail S

ervi

ce a

t Sec

onda

ry V

olta

ge D

eliv

ery

$0.0

6857

R

Tarif

f Adv

ice

No.

: 489

-8Ef

fect

ive:

Jul

y 1,

202

0

Issu

ed b

y:

Chu

gach

Ele

ctric

Ass

ocia

tion,

Inc.

P.O

. Box

196

300,

Anc

hora

ge, A

lask

a 99

519-

6300

B

y:

L

ee D

. Thi

bert

Title

: C

hief

Exe

cutiv

e O

ffice

r

'

RCA NO.: 8 157th Revision Sheet No. 95

Canceling

156th Revision Sheet No. 95


FUEL AND PURCHASED POWER COST ADJUSTMENT FACTORS

f. 1. Actual fuel costs for the quarter ending March 31, 2020

Description Total Retail SewardFuel Adjustment Factor Balance as of December 31, 2019 $338,933 $338,933 $0

Fuel Balance for Quarter Ending March 31, 2020 Beluga - BRU (Chugach) $21,798 $20,728 $1,070 AIX Energy, LLC (4/2016-3/2024) $0 $0 $0 Hilcorp Alaska, LLC (1/2015-3/2028) $529,988 $503,967 $26,021 Cook Inlet Energy (2014-3/2023) $0 $0 $0 Furie (5/2017 - 3/2033) $0 $0 $0 IGT - BRU (Chugach) $1,702 $1,615 $87 AIX Energy, LLC (4/2016-3/2024) $0 $0 $0 Hilcorp Alaska, LLC (1/2015-3/2028) $41,168 $39,058 $2,110 Cook Inlet Energy (2014-3/2023) $0 $0 $0 Furie (5/2017 - 3/2033) $0 $0 $0SPP - BRU (Chugach) $387,576 $368,374 $19,201 AIX Energy, LLC (4/2016-3/2024) $0 $0 $0 Hilcorp Alaska, LLC (1/2015-3/2028) $9,258,846 $8,800,198 $458,648 Cook Inlet Energy (2014-3/2023) $0 $0 $0 Furie (5/2017 - 3/2033) $0 $0 $0 CINGSA - FSS Capacity and Withdrawal Fees $493,090 $468,399 $24,690 CINGSA - ISS Capacity and Withdrawal Fees $0 $0 $0 CINGSA - Gas Withdrawn $2,841,642 $2,702,899 $138,743 Gas Transportation and Compression $1,066,037 $1,013,405 $52,632 Adjustment $0 $0 $0 Total Fuel and Transportation Expense $14,641,846 $13,918,643 $723,203

Less Credits Economy Fuel / Transportation Costs $0 $0 $0 Economy Margins ($310) ($294) ($16) Gas Exchange Contributions (Tesoro and Furie) ($129,475) ($123,112) ($6,363) Wheeling Revenue ($718,900) ($683,399) ($35,501) Subtotal ($848,686) ($806,805) ($41,880)

Net Fuel Expense $13,793,160 $13,111,837 $681,322Generation & Purchases (MWh) 351,086 334,519 16,567Cost per MWh at Generation $39.29 $39.20 $41.12 Total Fuel Cost Recovery $18,440,206 $17,758,884 $681,322Quarter Balance ($4,647,046) ($4,647,046) $0

Tariff Advice No.: 489-8 Effective: July 1, 2020 Issued by: Chugach Electric Association, Inc. P.O. Box 196300, Anchorage, Alaska 99519-6300


RC

A N

O.:

8

37

th R

evis

ion

She

et N

o.

95.0

4

C

ance

ling

3

6th R

evis

ion

She

et N

o.

95.0

4

Chu

gach

Ele

ctric

Ass

ocia

tion,

Inc.

F

UE

L A

ND

PU

RC

HA

SED

PO

WE

R C

OST

AD

JUST

ME

NT

FA

CT

OR

S (C

ON

TIN

UE

D)

f.2. A

ctua

l pur

chas

ed p

ower

cos

ts fo

r the

qua

rter e

ndin

g M

arch

31,

202

0

Des

crip

tion

Tota

lR

etai

lSe

war

dPu

rcha

sed

Pow

er A

djus

tmen

t Fac

tor

Bal

ance

as o

f Dec

embe

r 31,

201

9$2

,745

,038

$2,7

45,0

38$0

Purc

hase

d Po

wer

Exp

ense

Bra

dley

Lak

e Pu

rcha

ses

$1,8

24,7

42$1

,750

,763

$73,

979

FIW

Ren

ewab

le R

esou

rce

Expe

nse

$1,2

43,1

98$1

,243

,198

$0 N

on-U

tility

Gen

erat

ion

$569

$541

$28

Oth

er P

urch

ases

$3,5

00,3

11$3

,329

,602

$170

,709

S

ubto

tal

$6,5

68,8

20$6

,324

,103

$244

,717

Less

Pur

chas

ed P

ower

Cre

dits

Ren

ewab

le E

nerg

y C

ertif

icat

es$0

$0$0

Whe

elin

g R

even

ue($

322,

804)

($30

6,97

3)($

15,8

31)

S

ubto

tal

($32

2,80

4)($

306,

973)

($15

,831

) N

et P

urch

ased

Pow

er E

xpen

se$6

,246

,016

$6,0

17,1

31$2

28,8

86G

ener

atio

n &

Pur

chas

es (M

Wh)

351,

086

334,

519

16,5

67C

ost p

er M

Wh

at G

ener

atio

n$1

7.79

$17.

99$1

3.82

Purc

hase

d Po

wer

Cos

t Rec

over

y$3

,310

,333

$3,0

81,4

47$2

28,8

86

Qua

rter B

alan

ce$2

,935

,684

$2,9

35,6

84$0

Tarif

f Adv

ice

No.

: 489

-8Ef

fect

ive:

Jul

y 1,

202

0

Is

sued

by:

C

huga

ch E

lect

ric A

ssoc

iatio

n, In

c.

P

.O. B

ox 1

9630

0, A

ncho

rage

, Ala

ska

9951

9-63

00

By:

L

ee D

. Thi

bert

Title

: C

hief

Exe

cutiv

e O

ffic

er

~ ~

I

RCA NO.: 8 48th Revision Sheet No. 95.05

Canceling



FUEL AND PURCHASED POWER COST ADJUSTMENT FACTORS (CONTINUED)

f.3. Summary of Actual Fuel and Purchased Power Cost Adjustment Factor Balances Description Total Retail Seward

Fuel and Purchased Power Balance as of December 31, 2019 $3,083,972 $3,083,972 $0 Balance for Quarter Ending March 31, 2020

Fuel and Purchased Power Costs $20,039,176 $19,128,968 $910,208Generation & Purchases (MWh) 351,086 334,519 16,567Cost per MWh at Generation $57.08 $57.18 $54.94 Fuel and Purchased Power Recovery $21,750,539 $20,840,331 $910,208Balance for Quarter Ended March 31, 2020 ($1,711,363) ($1,711,363) $0

Cumulative Balance at Quarter Ended March 31, 2020 $1,372,609 $1,372,609 $0




RCA NO.: 8 95th Revision Sheet No. 95.5

Canceling



SUMMARY OF ACTUAL AND PROJECTED FUEL AND PURCHASED POWER COSTS

March 2020 September 2020

Description Volume 1 Unit Cost Total Cost Volume Unit Cost Total CostFuel ExpenseBeluga - BRU (Chugach) 7,147 $3.05 $21,798 0 $0.00 $0 AIX Energy, LLC (4/2016-3/2024) 0 $0.00 $0 0 $0.00 $0 Hilcorp Alaska, LLC (1/2015-3/2028) 70,665 $7.50 $529,988 0 $0.00 $0 Cook Inlet Energy (2014-3/2023) 0 $0.00 $0 0 $0.00 $0 Furie (5/2017 - 3/2033) 17 $0.00 $0 0 $0.00 $0IGT - BRU (Chugach) 558 $3.05 $1,702 0 $0.00 $0 AIX Energy, LLC (4/2016-3/2024) 0 $0.00 $0 0 $0.00 $0 Hilcorp Alaska, LLC (1/2015-3/2028) 5,489 $7.50 $41,168 0 $0.00 $0 Cook Inlet Energy (2014-3/2023) 0 $0.00 $0 0 $0.00 $0 Furie (5/2017 - 3/2033) 0 $0.00 $0 0 $0.00 $0SPP - BRU (Chugach) 127,074 $3.05 $387,576 169,112 $5.10 $862,471 AIX Energy, LLC (4/2016-3/2024) 0 $0.00 $0 0 $0.00 $0 Hilcorp Alaska, LLC (1/2015-3/2028) 1,234,513 $7.50 $9,258,846 1,331,718 $7.50 $9,987,885 Cook Inlet Energy (2014-3/2023) 0 $0.00 $0 0 $0.00 $0 Furie (5/2017 - 3/2033) 0 $0.00 $0 0 $0.00 $0 CINGSA - FSS Capacity and Withdrawal Fees ---- $0.00 $493,090 ---- $0.00 $1,227,228 CINGSA - ISS Capacity and Withdrawal Fees ---- $0.00 $0 ---- $0.00 $0 CINGSA - Gas Withdrawn 369,756 $7.69 $2,841,642 5,224 $7.77 $40,590 Gas Exchange Contributions (Tesoro and Furie) 0 $0.00 $0 0 $0.00 $0 Gas Transportation and Compression 0 $0.00 $1,066,037 0 $0.00 $1,187,859 Adjustment 0 $0.00 $0 0 $0.00 $0 Subtotal 1,815,219 $8.07 $14,641,846 1,506,054 $8.84 $13,306,034

Purchased Power Expense Bradley Lake Purchases, MWh 44,951 $40.59 $1,824,742 28,850 $64.61 $1,863,891 Total FIW Renewable Resource Expense 12,816 $97.00 $1,243,198 10,340 $97.00 $1,002,980 Non-Utility Generation 7 $76.93 $569 12 $35.00 $420 Other Purchases, MWh 39,062 $89.61 $3,500,311 13,238 $66.36 $878,525 Subtotal 96,836 $67.83 $6,568,820 52,440 $71.43 $3,745,816 Total Fuel & Purch. Power Expense ---- ---- $21,210,666 ---- ---- $17,051,849




Actual - Quarter Ended Projected - Quarter Ended

1 Fuel volumes from invoices.

RC

A N

O.:

8

14

1st Rev

isio

n

S

heet

No.

97

Can

celin

g

14

0th R

evis

ion

She

et N

o.

97

Chu

gach

Ele

ctric

Ass

ocia

tion,

Inc.

PUR

CH

ASE

AN

D S

AL

ES

RA

TE

S FO

R Q

UA

LIF

IED

CO

GE

NE

RA

TIO

N, S

MA

LL

PO

WE

R P

RO

DU

CT

ION

, AN

D S

TA

ND

BY

/ BU

YB

AC

K F

AC

ILIT

IES

Ava

ilabl

e in

all

terr

itory

serv

ed b

y C

huga

ch, o

r as r

equi

red

purs

uant

to c

ontra

ctua

l arr

ange

men

ts u

nder

w

hole

sale

pow

er sa

les a

gree

men

t. A

pplic

able

to q

ualif

ied

coge

nera

tion,

smal

l pow

er p

rodu

ctio

n an

dst

andb

y/bu

ybac

k fa

cilit

ies o

f 200

kW

or l

ess.

The

type

of s

ervi

ce sh

all b

e si

ngle

or t

hree

pha

se 6

0 he

rtzat

Chu

gach

's st

anda

rd v

olta

ges.

Chu

gach

rese

rves

the

right

to li

mit

the

num

ber o

f ret

ail c

usto

mer

s rec

eivi

ng se

rvic

e un

der t

he te

rms o

f th

is sc

hedu

le to

one

per

subs

tatio

n ci

rcui

t. C

huga

ch fu

rther

rese

rves

the

right

to re

duce

the

buyb

ack

rate

s for

cos

ts a

ssoc

iate

d w

ith th

e in

tegr

atio

n of

the

ener

gy p

rodu

ced

by th

e qu

alify

ing

faci

lity

into

the

Chu

gach

syst

em.

Inte

grat

ion

cost

s are

pro

ject

spec

ific

and

dete

rmin

ed th

roug

h th

e co

mpl

etio

n of

an in

tegr

atio

n st

udy

com

plet

ed b

y C

huga

ch.

Mon

thly

Rat

es Po

wer

sale

s sup

plie

d by

Chu

gach

to th

e cu

stom

er to

mee

t its

ele

ctric

requ

irem

ents

will

be

pric

ed a

tth

e ap

plic

able

rate

s. Th

e ra

te p

aid

by C

huga

ch to

the

cust

omer

for k

Wh

supp

lied

by th

e cu

stom

er to

Chu

gach

is th

e av

erag

e av

oide

d co

st c

alcu

late

d as

follo

ws:

1. F

uel a

nd p

urch

ased

pow

er e

xpen

se, e

xclu

ding

Bra

dley

Lak

e an

d

F

ire Is

land

Win

d, p

redi

cted

for n

ext q

uarte

r in

the

dete

rmin

atio

n

of f

uel a

nd p

urch

ased

pow

er ra

tes.

$12,

612,

014

2. N

on-fu

el O

&M

exp

ense

$44,

507

3. B

alan

cing

Acc

ount

as o

f Mar

ch 3

1, 2

020

$14,

821

4. T

otal

Avo

ided

Cos

t Inc

lude

d in

Rat

e $1

2,67

1,34

25.

kW

h Sa

les a

t G&

T pr

edic

ted

for n

ext q

uarte

r:25

7,82

5,00

06.

Avo

ided

Cos

t per

kW

h at

G&

T (L

4) /

L5$0

.049

15

R 7.

Avo

ided

Cos

t at R

etai

l Prim

ary

Vol

tage

a

) R

etai

l Prim

ary

kWh

Sale

s at G

&T

13,1

99,0

25

(P

erce

nt P

rimar

y D

istri

butio

n Lo

sses

at G

&T:

10.

59%

)

b

) R

etai

l Prim

ary

kWh

Sale

s at D

eliv

ery

11,8

01,7

80

c

) A

void

ed C

osts

per

kW

h at

Ret

ail P

rimar

y (L

6 x

L7a

/ L7b

)$0

.054

97

R

8. A

void

ed C

ost a

t Ret

ail S

econ

dary

Vol

tage

a

) R

etai

l Sec

onda

ry k

Wh

Sale

s at G

&T

261,

509,

547

(Per

cent

Sec

onda

ry D

istri

butio

n Lo

sses

at G

&T:

11.

25%

)

b

) R

etai

l Sec

onda

ry k

Wh

Sale

s at D

eliv

ery

232,

084,

658

c)

Avo

ided

Cos

ts p

er k

Wh

at R

etai

l Sec

onda

ry (L

6 x

L8a

/ L8b

)$0

.055

38

R

Thes

e ra

tes w

ill c

hang

e co

ncur

rent

ly w

ith fu

el a

djus

tmen

t fac

tor r

evis

ions

and

gen

eral

rate

revi

sion

s.

Tarif

f Adv

ice

No.

: 489

-8Ef

fect

ive:

Jul

y 1,

202

0

Issu

ed b

y:

Chu

gach

Ele

ctric

Ass

ocia

tion,

Inc.

P

.O. B

ox 1

9630

0, A

ncho

rage

, Ala

ska

9951

9-63

00

By:

Lee

D. T

hibe

rtTi

tle:

Chi

ef E

xecu

tive

Offi

cer

I I

RCA NO.: 8 4th Revision Sheet No. 97.1.4

Canceling

3rd Revision Sheet No. 97.1.4


FUEL AND PURCHASED POWER COST ADJUSTMENT FACTOR HISTORY(SERVICE AT TRANSMISSION DELIVERY, RETAIL)

Chugach Retail (Rate per kWh)Purchased FIW

For Rates Effective Total Fuel Power Adjustment Factor

October 1, 2019 $0.06178 $0.05868 $0.00132 $0.00178November 1, 2019 $0.06172 $0.05862 $0.00132 $0.00178January 1, 2020 $0.06692 $0.05799 $0.00655 $0.00238April 1, 2020 $0.06679 $0.03845 $0.02657 $0.00177July 1, 2020 $0.06085 $0.03874 $0.02031 $0.00180 N



RCA NO.: 8 4th Revision Sheet No. 97.5.2

Canceling

3rd Revision Sheet No. 97.5.2


FUEL AND PURCHASED POWER COST ADJUSTMENT FACTOR HISTORY(SERVICE AT CHUGACH RETAIL DELIVERY)

Primary Voltage (Rate per kWh) Purchased FIW Renewable

For Rates Effective Total Fuel Power Energy Adj. Factor

October 1, 2019 $0.06720 $0.06382 $0.00144 $0.00194November 1, 2019 $0.06714 $0.06376 $0.00144 $0.00194January 1, 2020 $0.06862 $0.05946 $0.00672 $0.00244April 1, 2020 $0.06822 $0.03927 $0.02714 $0.00181July 1, 2020 $0.06805 $0.04333 $0.02271 $0.00201 N



RC

A N

O.:

8

4th

Rev

isio

n

Sh

eet N

o.

97

.6.1

Can

celin

g

3rd

Rev

isio

n

S

heet

No.

97.6

.1

Chu

gach

Ele

ctric

Ass

ocia

tion,

Inc.

FUE

L A

ND

PU

RC

HA

SED

PO

WE

R C

OST

AD

JUST

ME

NT

FA

CT

OR

HIS

TO

RY

(SE

RV

ICE

AT

CH

UG

AC

H R

ET

AIL

SE

CO

ND

AR

Y V

OL

TA

GE

DE

LIV

ER

Y)

Se

cond

ary

Vol

tage

(Rat

e pe

r kW

h)

Purc

hase

dFI

W R

enew

able

For R

ates

Eff

ectiv

eTo

tal

Fuel

Pow

erEn

ergy

Adj

. Fac

tor

O

ctob

er 1

, 201

9$0

.067

70$0

.064

30$0

.001

45$0

.001

95N

ovem

ber 1

, 201

9$0

.067

64$0

.064

24$0

.001

45$0

.001

95Ja

nuar

y 1,

202

0$0

.069

13$0

.059

90$0

.006

77$0

.002

46A

pril

1, 2

020

$0.0

6873

$0.0

3957

$0.0

2734

$0.0

0182

July

1, 2

020

$0.0

6857

$0.0

4365

$0.0

2289

$0.0

0203

N

Tarif

f Adv

ice

No.

: 489

-8Ef

fect

ive:

Jul

y 1,

202

0

I

ssue

d by

:

Chu

gach

Ele

ctric

Ass

ocia

tion,

Inc.

P

.O. B

ox 1

9630

0, A

ncho

rage

, Ala

ska

9951

9-63

00

By

:

L

ee D

. Thi

bert

Title

: C

hief

Exe

cutiv

e O

ffic

er

' I

powering alaska's future · commissioners tllriff advice no. 489-8 june 19, 2020 page 2 of 6...

Documents