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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]
ELECTRONICALLY FILED WITH RCA
September 27, 2019
Regulatory Commission of Alaska
701 W. 8th Avenue, Suite 300
Anchorage, Alaska 99501
Subject: Tariff Advice No. 476-8; Chugach Electric Association, Inc. Fuel and Purchase
Power Rate Adjustments Effective Fourth Quarter, 2019
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 October 1, 2019.
TARIFF SHEET NUMBER CANCELS SHEET NUMBER SCHEDULE OR
ORIGINAL REVISED ORIGINAL REVISED RULE NUMBER
94 154th Revision 94 153rd Revision Fuel & Purchased
94.04 35th Revision 94.04 34th Revision Power Adjustment
94.05 47th Revision 94.05 46th Revision Factors at G&T,
94.1 93rd Revision 94.1 92nd Revision Retail Primary,
94.1.1 32nd Revision 94.1.1 31st Revision and Retail Secondary
95 153rd Revision 95 152nd Revision Actual Fuel &
95.04 34th Revision 95.04 33rd Revision Purchased Power
95.05 45th Revision 95.05 44th Revision Cost Schedules
95.5 90th Revision 95.5 89th Revision Purchase & Sales Q.F.
97 137th Revision 97 136th Revision Fuel &
97.1.4 Original 97.1.4 ---
------ Purchased Power
--- 97.5.2 Original 97.5.2 --- Adjustment
97.6.1 Original 97.6.1 --- 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
adversely impact customers or the public. Approximately 68,650 Chugach retail members (81,600
.. ~~ ------CHUGACH--
POWERING ALASKA'S FUTURE
Commissioners September 27, 2019
Tariff Advice No. 476-8 Page 2 of 7
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 second quarter 2019 and
projected costs through fourth quarter 2019.
Summary of Results
With the implementation of these rates, the total monthly bill for a Chugach residential customer
using 600 kWh of electricity will increase approximately 3.3 percent, or from $122.32 to $126.31.
The proposed fourth quarter 2019 retail fuel and purchased power rates are summarized in Table
1 below.
Table 1: Fourth Quarter 2019 Chugach Retail
Fuel and Purchased Power Rate Adjustment Factors
Retail Service No. of
Meters Fuel Rate
Purchased
Power Rate
FIW Adj.
Factor
Total
Recovery
Primary Service 20 $0.06382 $0.00144 $0.00194 $0.06720
Secondary Service 81,780 $0.06430 $0.00145 $0.00195 $0.06770
Chugach’s proposed rate for non-firm purchases from qualified facilities that have a nameplate
capacity of 200 kW or less is $0.06186 per kWh at transmission voltage, $0.06728 per kWh at
distribution primary voltage, and $0.06778 per kWh at distribution secondary voltage. Fuel and
purchased power rates are not calculated for Seward because they are billed monthly based on
actual costs.
The increase in the overall fuel and purchased power rates is primarily due to projected increases
in fuel costs resulting from damage due to the Swan Lake fire on approximately 14 miles of
transmission line that interconnects the Bradley Lake Hydroelectric Project to the Chugach system.
Alaska Electric and Energy Cooperative’s (AEEC)1 Sterling to Quartz Creek segment of the
transmission line (S/Q Line) was taken out of service on June 23, 2019 through July 12, 2019 and
has remained out of service since August 18, 2019. There is ongoing concern that the fire is still
burning in the vegetation in the region of the S/Q Line, which has prevented ground crews from
performing an inspection of the damage to the line. Currently, there are no estimates available for
when the S/Q Line will be back in service. Homer Electric Association, Inc. expects the process
to evaluate the line to take several weeks.2 The monthly impact of the loss of Bradley Lake energy
is approximately $0.5 million. Additionally, Cooper Lake Unit No. 1 was taken out of service for
scheduled maintenance in May 2019 and is expected to return to service in November, and Unit
No. 2 at the Eklutna Hydroelectric Project was taken out of service for scheduled maintenance that
started in July 2019 and is expected to return to service in March 2020. In total, the monthly impact
of the loss in hydro-generated power is approximately $1.0 million.
As indicated in Table 2 below, Chugach is not expecting any material change in the cost of natural
gas between third and fourth quarter 2019. The majority of Chugach’s gas purchases are from
1 AEEC provides generation and transmission service for Homer Electric Association, Inc. 2 Letter submitted to the Regulatory Commission of Alaska on September 24, 2019 from Bradley Janorschke, HEA
Swan Lake Fire (TR1905192 2019 Outage Report (Swan Lake Fire Update) CPCN 32 for Homer Electric
Association, Inc.)
Commissioners September 27, 2019
Tariff Advice No. 476-8 Page 3 of 7
Hilcorp Alaska, LLC, and from Chugach-owned gas from the Beluga River Unit (BRU). Table 2
below summarizes Chugach’s purchase price of natural gas for projected firm deliveries in the
third and fourth quarter of 2019.
Natural Gas Storage
Table 3 summarizes Chugach’s gas storage activity, excluding gas exchanges, on a volumetric
(“Mcf”) basis for the 12-months ending June 30, 2019.
Table 3: Volume of Gas in Storage (Mcf)
Month Purchased Fuel Gas Net
Injections Withdrawals Balance
Jul-18 136,302 1,499 134,803 8,498 1,308,349
Aug-18 108,241 1,191 107,050 631 1,414,769
Sep-18 81,780 899 80,881 26,927 1,468,722
Oct-18 67,585 743 66,842 26,022 1,509,542
Nov-18 78,104 859 77,245 11,606 1,575,181
Dec-18 41,625 458 41,167 60,841 1,555,507
Jan-19 21,312 234 21,078 150,830 1,425,755
Feb-19 16,784 185 16,599 119,156 1,323,198
Mar-19 19,252 212 19,040 77,946 1,264,292
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
Table 4 summarizes the value of the gas in storage, excluding gas exchanges. As of June 30,
2019, gas in storage totaled 1,307,617 Mcf at a value of $10,003,190 for an average weighted
price of $7.65 per Mcf.
//
Table 2: Summary of Chugach Natural Gas Supply Prices
Gas Supplier Contract Q3 2019 Q4 2019
Hilcorp Alaska, LLC. (1/1/2015 – 3/31/2023) Firm $7.50 $7.50
Chugach Electric Association, Inc. – BRU Owned $2.85 $3.10
Commissioners September 27, 2019
Tariff Advice No. 476-8 Page 4 of 7
Table 4: Total Value of Gas in Storage (Dollars)
Month Injections Withdrawals Cumulative
Balance
Average
Weighted Price
Jul-18 $1,060,130 $64,701 $9,995,081 $7.64
Aug-18 $837,189 $4,820 $10,827,449 $7.65
Sep-18 $632,527 $206,084 $11,253,892 $7.66
Oct-18 $522,736 $199,621 $11,577,007 $7.67
Nov-18 $604,095 $89,009 $12,092,093 $7.68
Dec-18 $321,948 $462,404 $11,951,637 $7.68
Jan-19 $164,838 $1,158,892 $10,957,583 $7.69
Feb-19 $129,816 $915,768 $10,171,630 $7.69
Mar-19 $148,879 $599,183 $9,721,326 $7.69
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
Fire Island Wind – MWh Purchases and Renewable Energy Certificate Sales
Chugach purchased a total of 10,898.3 MWh from the Fire Island Wind project during second
quarter 2019, of which 630.0 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 June 2019.
Table 5: Summary of Fire Island Wind Generation
Month Capacity
Factor
MWh Delivered
(Real Energy)
MWh Curtailed
(Deemed Energy)
Total MWh
(Real and Deemed)
Jul-18 22% 2,818.09 46.06 2,864.15
Aug-18 28% 3,630.68 125.98 3,756.65
Sep-18 15% 1,923.81 91.60 2,015.41
Oct-18 42% 5,520.80 43.81 5,564.61
Nov-18 33% 4,239.17 161.16 4,400.34
Dec-18 43% 5,585.96 0.00 5,585.96
Jan-19 42% 5,452.42 44.54 5,496.96
Feb-19 21% 2,542.38 29.98 2,572.36
Mar-19 36% 4,667.31 71.96 4,739.27
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
Total 30.1% 46,648.96 1,245.08 47,894.04
Commissioners September 27, 2019
Tariff Advice No. 476-8 Page 5 of 7
Since inception, the capacity factor of the Fire Island Wind project has averaged about 32.4 percent
and Chugach has curtailed approximately 7.6 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.
In October 2018, Chugach began selling Fire Island Wind energy, that would have otherwise been
curtailed, to Matanuska Electric Association Inc. The total energy sold during second quarter 2019
was 30.4 MWhs. The wheeling, ancillary services and energy sales revenues are applied as an
offset to the fuel and purchased power costs in this filing. Text has been updated on Exhibit 5 in
the Wheeling and Economy sales sections to report the revenues generated through these
curtailment avoidance sales.
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.
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.
Commissioners September 27, 2019
Tariff Advice No. 476-8 Page 6 of 7
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
New Tariff Sheets 97.1.4, 97.5.2, and 97.6.1 have been added to provide the continuation from
Tariff Sheets 97.1.3, 97.5.1, and 97.6, for the Fuel and Purchased Power Cost Adjustment Factor
history at transmission delivery, retail delivery at primary voltage, and retail delivery at secondary
voltage.
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.
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 October 1, 2019.
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 October 1, 2019.
Commissioners September 27, 2019
Tariff Advice No. 476-8 Page 7 of 7
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
October 1, 2019.
Please contact Jean Kornmuller in Chugach’s Regulatory Affairs and Pricing Department at 907-
762-4184 or [email protected], if additional information is needed.
Sincerely,
CHUGACH 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
Attachments
cc: John Foutz, City of Seward (electronically)
RCA NO.: 8 154th Revision Sheet No. 94
Canceling
153rd 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 October 1, 2019
Description Total Retail SewardFuel ExpenseBeluga-BRU (Chugach) $115,174 $110,219 $4,956 AIX Energy, LLC (4/2016-3/2024) $0 $0 $0 Hilcorp Alaska, LLC (1/2015-3/2023) $2,800,073 $2,679,593 $120,480 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 (1/2015-3/2023) $0 $0 $0 Cook Inlet Energy (2014-3/2023) $0 $0 $0 Furie (5/2017 - 3/2033) $0 $0 $0 SPP - BRU (Chugach) $392,795 $375,894 $16,901 AIX Energy, LLC (4/2016-3/2024) $0 $0 $0 Hilcorp Alaska, LLC (1/2015-3/2023) $9,635,198 $9,220,621 $414,577 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 $1,050,126 $1,004,942 $45,184 CINGSA - ISS Capacity and Withdrawal Fees $0 $0 $0 CINGSA - Gas Withdrawn $5,286,358 $5,058,901 $227,458 Gas Transportation and Compression $1,366,191 $1,307,407 $58,784 Total Fuel and Transportation Expense $20,645,914 $19,757,576 $888,338
Less Credits Economy Fuel / Transportation Costs $0 $0 $0 Economy Margins $0 $0 $0 Gas Exchange Contributions (Tesoro and Furie) ($401,100) ($383,842) ($17,258) Wheeling Revenue ($256,030) ($245,014) ($11,016) Subtotal ($657,130) ($628,855) ($28,275)
Net Fuel Expense $19,988,785 $19,128,721 $860,064Generation & Purchases (MWh) 336,315.2 322,530.3 13,785.0Cost per MWh at Generation $59.43 $59.31 $62.39
Projected Balances as of December 31, 2019 ($681,349) ($681,349) $0
Fuel Expense to be Recovered at G&T $19,307,435 $18,447,371 $860,064Predicted Sales at G&T (MWh) 327,827.8 314,390.7 13,437.1
Fuel Adjustment Factor per kWh at G&T $0.05890 $0.05868 ----* I, I* Not calculated. Seward is billed for actual fuel and purchased power costs on a monthly basis.
Tariff Advice No.: 476-8 Effective: October 1, 2019
Issued by: Chugach Electric Association, Inc. P.O. Box 196300, Anchorage, Alaska 99519-6300
By: Lee D. Thibert Title: Chief Executive Officer
RCA NO.: 8 35th Revision Sheet No. 94.04
Canceling
34th Revision Sheet No. 94.04
Chugach Electric Association, Inc.
FUEL AND PURCHASED POWER ADJUSTMENT FACTORS AT G&T (CONTINUED)
e.2. Purchased Power Adjustment Factor: Predicted costs for the quarter beginning October 1, 2019
Description Total Retail SewardPurchased Power Expense Bradley Lake Purchases $1,716,984 $1,643,107 $73,877 Base FIW Renewable Resource Cost $1,546,008 $1,546,008 $0 Other Purchases $1,604,772 $1,535,723 $69,049 Subtotal $4,867,764 $4,724,838 $142,926 Less Purchased Power Credits Renewable Energy Certificates $0 $0 $0 Wheeling Revenue ($60,365) ($57,768) ($2,597) Subtotal ($60,365) ($57,768) ($2,597)
Net Purchased Power Expense $4,807,399 $4,667,070 $140,329Generation & Purchases (MWh) 336,315 322,530 13,785Cost per MWh at Generation $14.29 $14.47 $10.18 Projected Balances as of December 31, 2019 ($4,253,199) ($4,253,199) $0
Purchased Power Expense to be Recovered $554,200 $413,871 $140,329Predicted Sales at G&T (MWh) 327,827.8 314,390.7 13,437.1 Purchased Power Adjustment Factor per kWh at G&T $0.00169 $0.00132 ----* R, R
* Not calculated. Seward is billed for actual fuel and purchased power costs on a monthly basis.Tariff Advice No.: 476-8 Effective: October 1, 2019
Issued by: Chugach Electric Association, Inc.
P.O. Box 196300, Anchorage, Alaska 99519-6300
By: Lee D. Thibert Title: Chief Executive Office
RCA NO.: 8 47th Revision Sheet No. 94.05
Canceling
46th 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 October 1, 2019
Description Total Retail Seward
Predicted FIW Purchases (MWh) 15,938.2 15,938.2 ---- Purchased Power Rate $97.00 $97.00 ---- Total FIW Purchased Power Cost $1,546,008 $1,546,008 ----
Chugach Avoided Energy Cost at G&T (MWh) $61.86 $61.86 ---- Estimated Cost Avoided Due to FIW Purchases $985,916 $985,916 ---- Fire Island Wind Cost Differential $560,092 $560,092 ---- Chugach Retail Generation & Purchases (MWh) 322,530.3 322,530.3 ---- Cost per MWh at Generation $1.74 $1.74 ---- Predicted Sales at G&T (MWh) 314,390.7 314,390.7 ---- FIW Adjustment Factor per kWh at G&T $0.00178 $0.00178 ----
e.4. Summary of fuel and purchased power cost adjustment factors at G&T for rates effective October 1, 2019
Fuel & Purch. Pwr Costs to be Recovered $25,356,275 $24,355,883 $1,000,393Generation & Purchases (MWh) 336,315.2 322,530.3 13,785.0Cost per MWh at Generation $75.39 $75.52 ----
Projected Balances as of December 31, 2019 ($4,934,548) ($4,934,548) $0
Total Costs Recovered at G&T $20,421,727 $19,421,335 $1,000,393 Predicted Sales at G&T (MWh) 327,827.8 314,390.7 13,437.1 Fuel and Purchased Power Adjustment Factor per kWh at G&T $0.06229 $0.06177 ---- * I, I* Not calculated. Seward is billed for actual fuel and purchased power costs on a monthly basis.
Tariff Advice No.: 476-8 Effective: October 1, 2019
Issued by: Chugach Electric Association, Inc. P.O. Box 196300, Anchorage, Alaska 99519-6300
By: Lee T. Thibert Title: Chief Executive Officer
RCA NO.: 8 93rd
Revision Sheet No. 94.1
Canceling
92nd
Revision Sheet No. 94.1
Chugach Electric Association, Inc.
FUEL AND PURCHASED POWER COST ADJUSTMENT FACTORS AT
RETAIL DELIVERY: PRIMARY SERVICE
e.5. Chugach retail fuel and purchased power adjustment factors for rates effective October 1, 2019
1. Total Chugach Retail Fuel and Purchased Power Cost Recovery $19,421,335
2. Retail Fuel Adjustment Factor per kWh at G&T $0.05868
3. Retail Purchased Power Adjustment Factor per kWh at G&T $0.00132
4. Fire Island Wind Adjustment Factor per kWh at G&T $0.00178
5. Chugach Retail Service at Primary Voltage
A. Fuel Adjustment Factor
a) Primary kWh Sales at G&T 12,727,519.4
b) Fuel Cost Recovery - Primary Voltage $746,851
c) Primary kWh Sales at Delivery 11,701,998.0
d) Fuel Adjustment Factor per kWh at Primary (b / c) $0.06382 I
(Percent Primary Distribution Losses at G&T: 8.06%)
B. Purchased Power Adjustment Factor
a) Primary kWh Sales at G&T 12,727,519.4
b) Purchased Power Cost Recovery - Primary Voltage $16,800
c) Primary kWh Sales at Delivery 11,701,998.0
d) Purchased Power Adjustment Factor per kWh at Primary (b / c) $0.00144 R
C. Fire Island Wind Renewable Energy Adjustment Factor
a) Primary kWh Sales at G&T 12,727,519.4
b) FIW Cost Differential - Primary Voltage $22,655
c) Primary kWh Sales at Delivery 11,701,998.0
d) FIW Renewable Energy Adjustment Factor per kWh at Primary (b / c) $0.00194 R
D. Total Retail Service at Primary Voltage Delivery $0.06720 I
Tariff Advice No.: 476-8 Effective: October 1, 2019
Issued by: Chugach Electric Association, Inc.
P.O. Box 196300, Anchorage, Alaska 99519-6300
By: Lee D. Thibert Title: Chief Executive Officer
RCA NO.: 8 32nd Revision Sheet No. 94.1.1
Canceling
31st Revision Sheet No. 94.1.1
Chugach Electric Association, Inc.
FUEL AND PURCHASED POWER COST ADJUSTMENT FACTORS ATRETAIL DELIVERY: SECONDARY SERVICE
e.6. Chugach retail fuel and purchased power adjustment factors for rates effective October 1, 2019
6. Chugach Retail Service at Secondary Voltage
A. Fuel Adjustment Factor a) Secondary kWh Sales at G&T 301,663,168.8 b) Fuel Cost Recovery - Secondary Voltage $17,701,595 c) Secondary kWh Sales at Delivery 275,290,839.9 d) Fuel Adjustment Factor per kWh at Secondary (b / c) $0.06430 I (Percent Secondary Distribution Losses at G&T: 8.74%) B. Purchased Power Adjustment Factor a) Predicted Secondary kWh Sales at G&T 301,663,168.8 b) Purchased Power Cost Recovery - Secondary Voltage $398,195 c) Predicted Secondary kWh Sales at Delivery 275,290,839.9 d) Purchased Power Adjustment Factor per kWh at Secondary (b / c) $0.00145 R C. Fire Island Wind Renewable Energy Adjustment Factor a) Predicted Secondary kWh Sales at G&T 301,663,168.8 b) FIW Cost Differential - Secondary Voltage $536,960 c) Predicted Secondary kWh Sales at Delivery 275,290,839.9 d) FIW Renewable Energy Adjustment Factor per kWh at Secondary (b / c) $0.00195 R
D. Total Retail Service at Secondary Voltage Delivery $0.06770 I
Tariff Advice No.: 476-8 Effective: October 1, 2019
Issued by: Chugach Electric Association, Inc. P.O. Box 196300, Anchorage, Alaska 99519-6300
By: Lee D. Thibert Title: Chief Executive Officer
RCA NO.: 8 153rd Revision Sheet No. 95
Canceling
152nd Revision Sheet No. 95
Chugach Electric Association, Inc.
FUEL AND PURCHASED POWER COST ADJUSTMENT FACTORS
f. 1. Actual fuel costs for the quarter ending June 30, 2019
Description Total Retail SewardFuel Adjustment Factor Balance as of March 31, 2019 ($3,779,560) ($3,779,560) $0
Fuel Balance for Quarter Ending June 30, 2019 Beluga - BRU (Chugach) $80,496 $76,257 $4,240 AIX Energy, LLC (4/2016-3/2024) $0 $0 $0 Hilcorp Alaska, LLC (1/2015-3/2023) $1,023,853 $969,993 $53,860 Cook Inlet Energy (2014-3/2023) $0 $0 $0 Furie (5/2017 - 3/2033) $0 $0 $0 IGT - BRU (Chugach) $157 $149 $8 AIX Energy, LLC (4/2016-3/2024) $0 $0 $0 Hilcorp Alaska, LLC (1/2015-3/2023) $1,470 $1,392 $78 Cook Inlet Energy (2014-3/2023) $0 $0 $0 Furie (5/2017 - 3/2033) $0 $0 $0SPP - BRU (Chugach) $929,664 $880,693 $48,971 AIX Energy, LLC (4/2016-3/2024) $0 $0 $0 Hilcorp Alaska, LLC (2015 - 2023) $8,884,290 $8,416,103 $468,188 Cook Inlet Energy (2014-3/2023) $0 $0 $0 Furie (5/2017 - 3/2033) $0 $0 $0 CINGSA - FSS Capacity and Withdrawal Fees $1,064,248 $1,008,196 $56,052 CINGSA - ISS Capacity and Withdrawal Fees $0 $0 $0 CINGSA - Gas Withdrawn $696,064 $659,292 $36,771 Gas Transportation and Compression $1,019,398 $965,705 $53,693 Adjustment $0 $0 $0 Total Fuel and Transportation Expense $13,699,640 $12,977,779 $721,860
Less Credits Economy Fuel / Transportation Costs ($8,480) ($8,045) ($435) Economy Margins ($3,680) ($3,486) ($194) Gas Exchange Contributions (Tesoro and Furie) ($307,494) ($291,303) ($16,191) Wheeling Revenue ($1,139,853) ($1,079,947) ($59,907) Subtotal ($1,459,506) ($1,382,780) ($76,727)
Net Fuel Expense $12,240,133 $11,594,999 $645,134Generation & Purchases (MWh) 287,140 272,684 14,456Cost per MWh at Generation $42.63 $42.52 $44.63 Total Fuel Cost Recovery $10,061,438 $9,416,305 $645,134Quarter Balance $2,178,695 $2,178,695 $0
Tariff Advice No.: 476-8 Effective: October 1, 2019 Issued by: Chugach Electric Association, Inc. P.O. Box 196300, Anchorage, Alaska 99519-6300
By: Lee D. Thibert Title: Chief Executive Officer
RCA NO.: 8 34th Revision Sheet No. 95.04
Canceling
33rd Revision Sheet No. 95.04
Chugach Electric Association, Inc.
FUEL AND PURCHASED POWER COST ADJUSTMENT FACTORS (CONTINUED)
f.2. Actual purchased power costs for the quarter ending June 30, 2019 Description Total Retail SewardPurchased Power Adjustment Factor Balance as of March 31, 2019 $2,139,883 $2,139,883 $0
Purchased Power Expense Bradley Lake Purchases $1,717,465 $1,642,312 $75,153 FIW Renewable Resource Expense $1,057,139 $1,057,139 $0 Non-Utility Generation $14,405 $13,650 $754 Other Purchases $1,345,896 $1,275,710 $70,186 Subtotal $4,134,905 $3,988,811 $146,093
Less Purchased Power Credits Renewable Energy Certificates $0 $0 $0 Wheeling Revenue ($359,849) ($341,016) ($18,833) Subtotal ($359,849) ($341,016) ($18,833) Net Purchased Power Expense $3,775,056 $3,647,795 $127,261Generation & Purchases (MWh) 287,140 272,684 14,456Cost per MWh at Generation $13.15 $13.38 $8.80
Purchased Power Cost Recovery $6,402,986 $6,275,725 $127,261
Quarter Balance ($2,627,930) ($2,627,930) $0
Tariff Advice No.: 476-8 Effective: October 1, 2019 Issued by: Chugach Electric Association, Inc. P.O. Box 196300, Anchorage, Alaska 99519-6300
By: Lee D. Thibert Title: Chief Executive Officer
RCA NO.: 8 45th Revision Sheet No. 95.05
Canceling
44th Revision Sheet No. 95.05
Chugach Electric Association, Inc.
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 March 31, 2019 ($1,639,678) ($1,639,678) $0 Balance for Quarter Ending June 30, 2019
Fuel and Purchased Power Costs $16,015,189 $15,242,795 $772,394Generation & Purchases (MWh) 287,140 272,684 14,456Cost per MWh at Generation $55.77 $55.90 $53.43 Fuel and Purchased Power Recovery $16,464,424 $15,692,030 $772,394Balance for Quarter Ended June 30, 2019 ($449,235) ($449,235) $0
Cumulative Balance at Quarter Ended June 30, 2019 ($2,088,913) ($2,088,913) $0
Tariff Advice No.: 476-8 Effective: October 1, 2019
Issued by: Chugach Electric Association, Inc. P.O. Box 196300, Anchorage, Alaska 99519-6300
By: Lee D. Thibert Title: Chief Executive Officer
RCA NO.: 8 90th Revision Sheet No. 95.5
Canceling
89th Revision Sheet No. 95.5
Chugach Electric Association, Inc.
SUMMARY OF ACTUAL AND PROJECTED FUEL AND PURCHASED POWER COSTS
June 2019 December 2019
Description Volume 1 Unit Cost Total Cost Volume Unit Cost Total CostFuel ExpenseBeluga - BRU (Chugach) 16,911 $4.76 $80,496 37,153 $3.10 $115,174 AIX Energy, LLC (4/2016-3/2024) 0 $0.00 $0 0 $0.00 $0 Hilcorp Alaska, LLC (1/2015-3/2023) 136,514 $7.50 $1,023,853 373,343 $7.50 $2,800,073 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 $0IGT - BRU (Chugach) 33 $4.76 $157 0 $0.00 $0 AIX Energy, LLC (4/2016-3/2024) 0 $0.00 $0 0 $0.00 $0 Hilcorp Alaska, LLC (1/2015-3/2023) 196 $7.50 $1,470 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) 195,308 $4.76 $929,664 126,708 $3.10 $392,795 AIX Energy, LLC (4/2016-3/2024) 0 $0.00 $0 0 $0.00 $0 Hilcorp Alaska, LLC (1/2015-3/2023) 1,184,572 $7.50 $8,884,290 1,284,693 $7.50 $9,635,198 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 $1,064,248 ---- $0.00 $1,050,126 CINGSA - ISS Capacity and Withdrawal Fees 0 $0.00 $0 0 $0.00 $0 CINGSA - Gas Withdrawn 90,736 $7.67 $696,064 680,355 $7.77 $5,286,358 Gas Exchange Contributions (Tesoro and Furie) 0 $0.00 $0 0 $0.00 $0 Gas Transportation and Compression 0 $0.00 $1,019,398 0 $0.00 $1,366,191 Adjustment 0 $0.00 $0 0 $0.00 $0 Subtotal 1,624,270 $8.43 $13,699,640 2,502,252 $8.25 $20,645,914
Purchased Power Expense Bradley Lake Purchases, MWh 37,796 $45.44 $1,717,465 0 $0.00 $1,716,984 Total FIW Renewable Resource Expense 10,268 $102.95 $1,057,139 15,938 $97.00 $1,546,008 Non-Utility Generation 201 $71.81 $14,405 12 $35.00 $420 Other Purchases, MWh 16,371 $82.21 $1,345,896 13,792 $116.32 $1,604,352 Subtotal 64,636 $63.97 $4,134,905 29,742 $163.67 $4,867,764 Total Fuel & Purch. Power Expense ---- ---- $17,834,544 ---- ---- $25,513,678
Tariff Advice No.: 476-8 Effective: October 1, 2019
Issued by: Chugach Electric Association, Inc. P.O. Box 196300, Anchorage, Alaska 99519-6300
By: Lee D. Thibert Title: Chief Executive Officer
Actual - Quarter Ended Projected - Quarter Ended
1 Fuel volumes from invoices.
RCA NO.: 8 137th Revision Sheet No. 97
Canceling
136th Revision Sheet No. 97
Chugach Electric Association, Inc.
PURCHASE AND SALES RATES FOR QUALIFIED COGENERATION, SMALL POWER PRODUCTION, AND STANDBY/ BUYBACK FACILITIES
Available in all territory served by Chugach, or as required pursuant to contractual arrangements under wholesale power sales agreement. Applicable to qualified cogeneration, small power production andstandby/buyback facilities of 200 kW or less. The type of service shall be single or three phase 60 hertzat Chugach's standard voltages.
Chugach reserves the right to limit the number of retail customers receiving service under the terms of this schedule to one per substation circuit. Chugach further reserves the right to reduce the buyback rates for costs associated with the integration of the energy produced by the qualifying facility intothe Chugach system. Integration costs are project specific and determined through the completion ofan integration study completed by Chugach.
Monthly Rates Power sales supplied by Chugach to the customer to meet its electric requirements will be priced atthe applicable rates. The rate paid by Chugach to the customer for kWh supplied by the customer toChugach is the average avoided cost calculated as follows:
1. Fuel and purchased power expense, excluding Bradley Lake and Fire Island Wind, predicted for next quarter in the determination of fuel and purchased power rates. $19,757,5762. Non-fuel O&M expense $43,6343. Balancing Account as of June 30, 2019 $16,8564. Total Avoided Cost Included in Rate $19,818,0665. kWh Sales at G&T predicted for next quarter: 320,377,0006. Avoided Cost per kWh at G&T (L4) / L5 $0.06186 I 7. Avoided Cost at Retail Primary Voltage a) Retail Primary kWh Sales at G&T 12,727,519
(Percent Primary Distribution Losses at G&T: 8.06%) b) Retail Primary kWh Sales at Delivery 11,701,998 c) Avoided Costs per kWh at Retail Primary (L6 x L7a / L7b) $0.06728 I
8. Avoided Cost at Retail Secondary Voltage a) Retail Secondary kWh Sales at G&T 301,663,169
(Percent Secondary Distribution Losses at G&T: 8.74%) b) Retail Secondary kWh Sales at Delivery 275,290,840 c) Avoided Costs per kWh at Retail Secondary (L6 x L8a / L8b) $0.06778 I
These rates will change concurrently with fuel adjustment factor revisions and general rate revisions.
Tariff Advice No.: 476-8 Effective: October 1, 2019 Issued by: Chugach Electric Association, Inc. P.O. Box 196300, Anchorage, Alaska 99519-6300
By: Lee D. Thibert Title: Chief Executive Officer
RCA NO.: 8 Original Sheet No. 97.1.4
Canceling
Sheet No. 97.1.4
Chugach Electric Association, Inc.
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 $0.00178 N
Tariff Advice No.: 476-8 Effective: October 1, 2019
Issued by: Chugach Electric Association, Inc. P.O. Box 196300, Anchorage, Alaska 99519-6300
By: Lee D. Thibert Title: Chief Executive Officer
RCA NO.: 8 Original Sheet No. 97.5.2
Canceling
Sheet No. 97.5.2
Chugach Electric Association, Inc.
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 $0.00194 N
Tariff Advice No.: 476-8 Effective: October 1, 2019 Issued by: Chugach Electric Association, Inc. P.O. Box 196300, Anchorage, Alaska 99519-6300
By: Lee D. Thibert Title: Chief Executive Officer
RCA NO.: 8 Original Sheet No. 97.6.1
Canceling
Sheet No. 97.6.1
Chugach Electric Association, Inc.
FUEL AND PURCHASED POWER COST ADJUSTMENT FACTOR HISTORY(SERVICE AT CHUGACH RETAIL SECONDARY VOLTAGE DELIVERY)
Secondary Voltage (Rate per kWh) Purchased FIW Renewable
For Rates Effective Total Fuel Power Energy Adj. Factor
October 1, 2019 $0.06770 $0.06430 $0.00145 $0.00195 N
Tariff Advice No.: 476-8 Effective: October 1, 2019 Issued by: Chugach Electric Association, Inc.
P.O. Box 196300, Anchorage, Alaska 99519-6300
By: Lee D. Thibert Title: Chief Executive Officer