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M-S-R PUBLIC POWER AGENCY

MEMORANDUM Date: October 28, 2016 To: M-S-R PPA Technical Committee From: Martin R. Hopper, General Manager Subject: Thursday, November 3, 2016, M-S-R PPA Technical Committee Meeting Please find enclosed the agenda for the Thursday, November 3, 2016, M-S-R PPA Technical Committee Meeting to be held in Folsom, CA at 9:00 AM. Please post as required for Brown Act compliance. Distribution: Alan Hockenson – KBT Dave Arthur – KBT Ann Czerwonka – NCI Steve Gross – General Counsel Toxie Burriss - MID Greg Salyer - MID David Olivares – MID James McFall – MID Scott Van Vuren – MID Ed Oborn – MID Regina Cox – MID Cindy Worley – MID Steve Hance – SVP Ann Hatcher – SVP Joyce Kinnear – SVP Yanmei Qiu – SVP Elizabeth Hadley – Redding Steve Handy – Redding Paul Cummings – Redding Barry Tippin – Redding Macintosh HD:Users:martinhopper:My Laptop Documents:M-S-R Public Power Agency:Technical Committee:Agendas:2016:Nov16 AGN MSR PPA 11-3-16.doc

M-S-R Public Power Agency

MEETING OF THE TECHNICAL COMMITTEE

Thursday, November 3, 2016, 9:00 AM

Navigant Consulting, Inc.

35 Iron Point Circle, Suite 225 Folsom, CA 95630

AGENDA Any member of the public who desires to address the Committee on any item considered by the Committee at this meeting before or during the Committee’s consideration of that item shall so advise the Chair and shall thereupon be given an opportunity to do so. 1. Call to Order

2. Roll Call

3. Budget Workshop

a. Discussion and Possible Action Regarding 2017 M-S-R PPA Budget (attached, Martin Hopper and Cindy Worley)

4. Approval of Minutes of September 7 and September 20, 2016 Meetings (attached)

5. November 2016 General Manager’s Report (to be distributed at meeting, Martin Hopper)

6. Projects and Activities (Alan Hockenson)

a. San Juan Project Status Report (attached, Alan Hockenson)

b. Pacific Northwest Projects Status Report (attached, Alan Hockenson

7. Discussion and Possible Action Regarding November 2016 Outside Services Budget Versus Actual Report (attached, Martin Hopper)

8. Discussion and Possible Action Regarding November 2016 WREGIS REC Status Report (attached, Martin Hopper)

9. Discussion and Possible Action Regarding November 2016 San Juan Fuel Consumption Status Report (attached, Martin Hopper)

10. Discussion and Possible Action Regarding Resolution 2016-04 Regarding Use and Transfers of Reserves and Working Capital (attached, Martin Hopper)

11. Discussion and Possible Action Regarding 2017 Meeting Dates (attached, Martin Hopper)

12. Discussion and Possible Action Regarding Letter Agreement with Avangrid Renewables, Inc. Re CARB Reporting Templates and CITSS Transfers (attached, Martin Hopper)

13. Closed Session

a. Closed Session Pursuant to Government Code Section 54956.9(d)(1) – Conference with Legal Counsel – Existing Litigation (10th US Circuit Court of Appeals 11-9557 et al, NM-PRC Case No. 13-00390-UT, Supreme Court of New Mexico Case No. 35,697, BP-16-BPA, BP-18-BPA) – 6 Cases

14. Announcement from Closed Session

15. Member Reports

16. Public Comment

17. Confirm date and time of next meeting

18. Adjourn

ALTERNATE FORMATS OF THIS AGENDA WILL BE MADE AVAILABLE UPON REQUEST TO QUALIFIED INDIVIDUALS WITH DISABILITIES.

M-S-R Public Power Agency Staff Report

Date: October 28, 2016 From: Martin R. Hopper, General Manager To: M-S-R PPA Commission Subject: Approval of 2017 M-S-R Public Power Agency Budget The proposed 2016 M-S-R PPA Budget has been prepared in conformance with our Bond

Indentures and the policies and priorities established in the 2017 M-S-R PPA Strategic Plan

adopted by this Commission on September 28, 2016. A detailed enumeration of the assumptions

used to construct this budget is attached to this report.

The total expenditures under the budget will be $xxx.x million which represents an decrease of

x.x% over the 2016 M-S-R PPA Budget as summarized below.

Category 2016

Budget

Proposed

2017

Budget

Percentage

Change Comment

Agency and Debt Admin 0.6 x.x xx.x% Includes Bond

Counsel costs re

SWTP & SJGS

dispositions

Generation (San Juan) 86.8 xx.x xx.x% 2015 included 50-day

scheduled Major

Maintenance Outage

Transmission (Southwest

Transmission Project)

6.8 0

N/A Note effect of SWTP

disposition

Renewables (Big Horn I

& II)

51.9 x.xx xx.x% Generation reduced

based on historic

performance and costs

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of ancillary services

Totals 146.1 xxx.x xx.x%

Please note that the budget as proposed generates sufficient revenues to meet debt service

coverage requirements in fiscal year 2017 computed as set forth in Resolution 2014-07 regarding

the Computation of Debt Service Coverage. Staff will closely monitor the Agency’s fiscal

performance during the course of the year to assure that debt Service coverage requirements will

be met. The proposed 2017 M-S-R PPA Budget was reviewed by Member Staff in a workshop

held November 3, 2016.

I recommend the Commission adopt the proposed M-S-R Public Power Agency 2017 Budget.

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M-S-RPPA2017/2018BudgetAssumptions

1. OperatingCostsandRelatedRevenues:a. SanJuanProjectOperations:

i. RestructuringAgreementswentintoeffectonoraboutJanuary31,2016.ii. SanJuanDemandChargetobepaidasanoperatingexpenseinamount

of$105,769(71.65%of$6,200,000dividedby42)eachmonthfortheperiodJanuary1,2017throughDecember31,2017(RestructuringAgreement§4.4).

iii. SanJuanMineReclamationTrustFundcontributionstobefundedfromworkingcapitalpursuanttoResolution2016-04.

iv. Nopaymentsareassumedtobemadeineither2017or2018pursuanttotheSanJuanDecommissioningandTrustFundsAgreement§6.2

v. FuelCostsasprovidedtoMIDPowerOperationsinconformancewithRestructuringAgreement§5.4,§5.5,and§5.6atapriceof$50.00pertonwithheatcontentof9,757BTU/lbperSJCC2017AOPandplantheatrateof10,700BTU/kWhperPNMPlantManageronOctober22,2015anddispatchedonthebasisofMemberSanJuanforecastsprovidedtoPNMinAugust2016.

vi. AshDisposal,StartingOilandFuelHandlingCostsastobeprovidedtoMIDPowerOperationsonthebasisofSanJuanGeneratingStation2017BudgetParticipantShareReportforM-S-R)inconformancewithRestructuringAgreement§5.4,§5.5,and§5.6atavaluesof$1.95/MWhfor2017anddispatchedonthebasisofMemberSanJuanforecastsprovidedtoPNMinAugust2016.

b. PacificNorthwestProject(BigHornIandBigHornIIWindEnergyProjects:1. BigHornI:2017and2018windenergyproductionestimates

madeonbasisoflifeofprojectproductionhistoryat520,000MWh.

2. BigHornII:2017and2018windenergyproductionestimatesmadeonbasisoflifeofprojectproductionhistoryat120,000MWh.

ii. VERBScostsunchangedin2017andreducedin2018perBPA-18initialindications.

iii. BigHornIItransmissionservicescostsunchangedin2017andincreased4%in2018perBPA-18initialindications..NoteShortDistanceDiscountnotappliedperBPAdeterminationofinapplicabilityifalternatedeliveriesmadeinanyhourduringaservice-month.AssumeBPAwillmakeandapplysuchdeterminationsinallmonths.

2. LegalandConsultingCosts:a. SanJuanConsulting,Legal,andOutsideServicesBudgets:

i. SupportofSanJuannegotiationswillbeassumedtobeatalevelconsummatewithimplementingtheexistingrestructuringagreements,

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preparationofexitdocuments,andnegotiationofancillaryagreementssuchasthosewithTEPtoterminateorassignthereservesharingandexchangeagreements.Iftheimplementationoftherestructuringagreementsisdelayedorifmajorrenegotiationsarerequired,anappropriatebudgetaugmentationwillberecommendedatthattime.

ii. SanJuanregulatorycomplianceeffortswillcontinueregardingSB1368reporting,CARBMRRandCap-and-TradereportsbyMembers.

iii. SupportofSanJuanoperationswillincludeparticipationandmonitoringofenvironmentalreviews,fuelcostallocationspertainingtoashdisposalandminereclamationandamajorupdateoftheminereclamationstudiesrequiredundertheMineReclamationandTrustFundsAgreement.TheSanJuanGeneratingStationBudgetwillalsorequireclosereviewtoguardagainstmis-allocationofcapital,operating,anddecommissioningcosts.

iv. Post-ExitsupporttoreflectimplementationofRestructuringAgreements,monitoringofDecommissioningandMineReclamationactivitiesandauditofprojectoperationclose-outs.

b. SouthwestTransmissionProjectConsulting,Legal,andOutsideServicesBudgets:i. AsSanJuanProjectdeliverieswillcontinuethroughalternate(CAISO)

deliverypathsthrough2017,FERCmonitoringandparticipationinFERCdocketsregardingTransmissionRevenueRequirementfilingsandotherwiseaffectingTransmission/WheelingAccessChargesincurredbyMemberswillbemaintainedingeneralathistoriclevels,butreducedeffortswillbedeployedonSCEratecasestoreflecttheterminationofdirectpass-throughsofSCEcostsundertheAgency’sformertransmissionservicesagreement.

ii. Furtherreductionsineffortwillbeconsideredin2018toreflectterminationofSanJuandeliveries.However,suchactivitiesmaycontinueinthefuturetoprovideeconomiesofscaleandreductionofduplicationofeffortamongtheMembers.Newworkplans,ifany,tobedevelopedandagreeduponin2017perStrategicPlanrecommendations.

c. PacificNorthwestProject(BigHornWindEnergyProjects):i. ConsultingandlegalsupportofBP-18shallcontinueatstatusquolevels

ascontemplatedintheAgency’sAnnualStrategicPlan.Provisionwillbemadeforthelong-termtransitionofconsultingpersonnelandpotentialcost-sharing/cooperationwithLADWP.

ii. Additionaleffortmaybeindicatedintheclean-upofcertaincontractualambiguitiesidentifiedbytheAgencyanditscounter-partiesregardingBigHornI.

10/28/16 AGENCY A&G M-S-R PPA 2017 Budget Detail Rev 10-27-16.xls

M-S-R PPA 2016 Budget Detail

Description 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2016 Mid-Year Budget

2016 YTD 2016 Expected

2017 2018 Notes

AGENCY ADMINISTARTION & GENERAL

Registration/Licenses

APPA 2,465 2,090 3,245 3,170 3,595 3,500 3,500 3,910 4,615 9,000 9,000

Dues and Annual Mtg, Leg Rally, JPA Workshop, CEO Roundtable, and Legal & Reg Registration. Include $5000 for Western Markets Working Group in 2017 & 2018

CMUA 5,503 5,628 5,476 5,386 5,606 5,500 5,500 5,746 5,746 6,000 6,000 Dues, Annual Mtg & Leg Day Registration

MISAC 160 160 200 200

Municipal Information Systems Association of California

NWPPA 1,700 1,700 Dues and Annual Mtg Registration

WSPP Dues 0 - 2,000 - - 2,000 2,000 - - - 2,000

Annual Dues commencing 2013. Dues were previously waived. WSPP indicates 2014 & 2015 dues also to be waived. Recommence in 2016.

Dow Jones CEM - - 3,000 3,000 - - - - - - -

Terminal for MSR Coord - succeeded by Platts in 2014 & moved to Outside Services.

TOTAL 7,968 10,600 13,721 11,556 9,201 11,000 11,000 9,816 10,521 16,900 18,900

10/28/16 GENERATION A&G M-S-R PPA 2017 Budget Detail Rev 10-27-16.xls




2017 2018 Notes

GENERATION ADMINISTRATION & GENERAL

Property TaxesSan Juan County 706,302 706,400 728,976 747,222 744,389 770,000 770,000 361,656 746,656 770,000 - San Juan Unit No. 4

Fixed PaymentsDemand Charge - Accrued

634,614 1,269,229 1,269,229 1,269,229 1,057,690 1,269,229 1,269,229 -

Per Restructuring Agreement §4.4 accrued 2015 Demand Charge will be paid on or before February 15, 2016

TrustsSan Juan Mine Reclamation Trust (Paid as O&M - Does not include

deposits from equity)

1,265,000 300,000 300,000 3,000,000 3,600,000 1,800,000 1,800,000 1,800,000 - -

Treat as monthly fixed obligation as collected from Members. Opt-Out Basis per Mine Reclamation and Trust Agreement Exhibit 1C. See 2016 Budget Assumptions §1(a)(iv) and §1(a)(v)

TOTAL 706,302 10,600 1,028,976 1,681,836 5,013,618 5,639,229 3,839,229 3,219,346 3,815,884 2,039,229 -

10/28/16 DEBT ADMIN M-S-R PPA 2017 Budget Detail Rev 10-27-16.xls




2017 2018 Notes

AGENCY DEBT ADMINISTRATIVE

Arbitrage RebateArbitrage Rebate - - - - - - - - Arbitrage Rebates Paid

Bond Counsel

Orrick Herrington 44,544 1,691 16,912 15,261 501 10,000 10,000 2,859 2,859 10,000 10,000

Credit Support renew/replacement for Series 2008 M&N Bonds in 2014. SWTP & SJGS issues also reviewed in 2013.

Oririck Herrington - Other - - 26,507 50,000 50,000 42,031 42,031 - -

San Juan Disposition Options additional $50k in 2012 & 2013. $100k Support for potential CAISO transition in 2013 per Xmn White Paper postponed to 2014. All postponed until 2015.

TOTAL 44,544 1,691 16,912 15,261 27,008 60,000 60,000 44,890 44,890 10,000 10,000

Financial Services

BLX 12,500 4,000 6,000 6,000 5,500 5,500 6,000 6,000 Arbiitrage Review and MCDC Review.

Montague DeRose 33,224 31,499 23,099 4,155 31,879 35,000 35,000 53,118 53,118 35,000 35,000

Additional work in 2013 re SJGS Restructuring. Direct Pay re Series 2008 M&N Bonds to be refinanced in 2014

Moodys - - 10,500 12,000 13,000 12,000 12,000 13,500 13,500 12,000 12,000

Standard & Poors 5,000 5,000 - - - - - - - - May only be applicable to 2008 M&N Bonds

TOTAL 38,224 36,499 33,599 28,655 48,879 53,000 53,000 72,118 72,118 53,000 53,000

Trustee FeesTrustee Fees 22,531 21,242 24,648 30,000 30,000 7,600 30,000 32,000 32,000

GRAND TOTAL 82,768 38,190 73,042 65,158 100,535 143,000 143,000 124,608 147,008 95,000 95,000

10/28/16 CONSULTING M-S-R PPA 2017 Budget Detail Rev 10-27-16.xls




2017 2018 Notes

CONSULTING/ENGINEERING

GenerationNavigant 42,646 21,584 5,916 27,726 6,225 5,000 5,000 3,267 5,000 5,000 5,000 Includes Hibbler & Maxwell. 2014

Update to SJGS Exit economics. Regulatory and CAA Allowance monitoring.

Navigant - OtherKBT 86,265 101,045 123,884 152,060 140,932 95,000 130,000 106,869 136,869 140,000 25,000 Hockenson. Note: Higher efforts in

2013, 2014, & 2015 re San Juan negotiations.

KBT - Other 22,230 12,540 31,540 - - - - 25,000 San Juan options implementation in 2013 = repeat in 2014 & 2015 ($40k). Final Bond report at execution of Restructuring Agreement in 2015. Allowance for preparation of closing documents in 2017.

Mayson/North State ConsultingMayson - OtherOthers - Other 24,469 57,383 6,862 5,968 7,683 - - - - - - MID/Ferguson Group. Federal

legislative advocacy & APPA Leg Rally support moved to Outside Services for 2016 & 2017.

TOTAL 153,380 180,012 158,892 198,294 186,380 100,000 135,000 110,136 141,869 170,000 30,000

TransmissionNavigant 63,737 83,543 74,793 31,077 15,357 35,000 35,000 16,023 27,469 30,000 30,000 (Note: 2012 Budget did not include

TO6 Annual Compliance filing review). Includes Cohen SCE TO5, TO6 & successor cases. Terminate/restructure activitiies if SWTP RFO successful. Although sale of Meads assets expected to close in Q2 2016, will budget status quo in 2016. Will show lesser level of support in 2017 for potential phase-out.

Navigant - Other - - - - - Was for TRR development as alternate to sale of Meads Interests.

KBT 77,701 78,289 56,944 56,785 30,111 30,000 30,000 26,410 26,410 - - Although sale of Meads assets expected to close in Q2 2016, will budget status quo in 2016. Will show minimal level of support in 2017 for misc activities.

KBT - Other - 16,636 25,000 - - - - - Support of Meads Divestiture including Bond Report and negotiation support in 2015. Support of preparation of Closing Documents in 2016 and audit of final cost allocations.

Mayson/North State ConsultingMayson - Other

Flynn & Others - Other - - - 125,495 43,471 25,000 5,000 3,765 3,765 - - Support for potential CAISO transition in 2013 deferred from 2013 to 2014 - per Xmn White Paper - NERC/Order 1000. Flynn RCI SWTP study & RFO assistance in 2014. Completion of RFO and sales Implementation in 2015. Support of transaction close in 2016.

TOTAL 141,438 161,832 131,737 213,357 105,575 115,000 70,000 46,198 57,644 30,000 30,000

RenewableNavigant 3,255 - 10,000 REC Value Study

Navigant - Other 25,000 25,000 25,000 25,000 Analytic support of BPA Rate case activities and succession planning - Cohen.

KBT 183,960 176,050 50,662 28,267 28,266 50,000 50,000 48,500 64,666 50,000 50,000 General renewable support. Hockenson ($25,000) and Arthur ($25,000) Prospective amends and clean-up BH1 F&S Agreement in 2016.

KBT - Other - BPA Rate Case 40,080 47,620 34,800 50,000 65,000 40,800 63,800 70,000 70,000 Arthur - Rate Cases - primaryKBT - Other - OMP 21,280 2,880 - 5,000 5,000 - - Arthur - OMP

Mayson/North State Consulting 37,349 23,600 Support BPA Rate CaseMayson - Other - Rate Case - - - - - - Support BPA Rate Case

Mayson - Other - OMP - - - - - - Support OMP LitigationOthers - Other

TOTAL 221,310 202,905 112,022 78,767 63,066 130,000 145,000 89,300 138,466 145,000 145,000

Administrative & GeneralNavigant 19,388 9,906 10,312 11,451 10,694 10,000 10,000 6,354 10,893 10,000 5,000 Misc support and meeting services.

KBT 46,822 38,339 54,527 48,068 40,936 45,000 40,000 32,990 43,987 45,000 20,000 Tech C'tee, Commisison and general support. Policy Manual in 2013

Mayson/North State ConsultingOthers - Other

TOTAL 66,210 48,245 64,839 59,519 51,630 55,000 50,000 39,344 54,880 55,000 25,000

GRAND TOTALS 582,338 592,994 467,490 549,937 406,651 400,000 400,000 284,978 392,859 400,000 230,000

BY CONTRACTOR:Navigant 125,771 118,288 91,021 70,254 32,276 50,000 50,000 25,644 53,362 45,000 40,000

Navigant - Other - - - - - 25,000 25,000 - - 25,000 25,000 KBT 394,748 393,723 286,017 285,180 240,245 220,000 250,000 214,769 271,932 235,000 95,000

KBT- Other - - 83,590 63,040 82,976 80,000 70,000 40,800 63,800 95,000 70,000 Mayson/North State Consulting 37,349 23,600 - - - - - - - - - Flynn, Ferguson Group - Other 24,469 57,383 6,862 131,463 51,154 25,000 5,000 3,765 3,765 - -

TOTAL 582,338 592,994 467,490 549,937 406,651 400,000 400,000 284,978 392,859 400,000 230,000

BY FUNCTION:Generation 128,911 122,629 129,800 179,786 147,157 100,000 135,000 110,136 141,869 145,000 30,000

Generation - Other 24,469 57,383 29,092 18,508 39,223 - - - - 25,000 - Transmission 141,438 161,832 131,737 87,862 45,468 65,000 65,000 42,433 53,879 30,000 30,000

Transmission - Other - - - 125,495 60,107 50,000 5,000 3,765 3,765 - - Renewables 221,310 202,905 50,662 28,267 28,266 50,000 50,000 48,500 74,666 50,000 50,000

Renewables - Other - - 61,360 50,500 34,800 80,000 95,000 40,800 63,800 95,000 95,000 Administrative and General 66,210 48,245 64,839 59,519 51,630 55,000 50,000 39,344 54,880 55,000 25,000

Administrative and General Other - - - - - - - - - - - TOTAL 582,338 592,994 467,490 549,937 406,651 400,000 400,000 284,978 392,859 400,000 230,000

Note: Does not include any allowance for SJGS Arbitrations

10/28/16 COORD SVCS M-S-R PPA 2017 Budget Detail Rev 10-27-16.xls


Description 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Budget2016 Mid-Year

Budget 2016 YTD 2016 Expected 2017 2018 Notes

COORDINATING SERVICES 616,800 628,390 642,283 647,244 657,088 670,000 670,000 491,007 654,676 680,000 450,000

Assume post-2017 costs reduced by 35% and allocated based on existing model.

Generation 231,300 235,646 240,856 242,717 246,408 251,250 251,250 184,128 245,503 255,000

Transmission

Renewable 385,500 392,744 401,427 404,528 410,680 418,750 418,750 306,879 409,172 425,000 450,000

Administrative & General

TOTAL 616,800 628,390 642,283 647,244 657,088 670,000 670,000 491,007 654,676 680,000 450,000

Generation (3/8)Modesto 50% 115,650 117,823 120,428 121,358 123,204 125,625 125,625 92,064 122,752 127,500 -

Santa Clara 35% 80,955 82,476 84,300 84,951 86,243 87,938 87,938 64,445 85,926 89,250 - Redding 15% 34,695 35,347 36,128 36,407 36,961 37,688 37,688 27,619 36,826 38,250 -

Big Horn 1 (3/8) 231,300 235,646 240,856 242,717 246,408 251,250 251,250 184,128 245,503 255,000 270,000

Modesto 12.5% 28,913 29,456 30,107 30,340 30,801 31,406 31,406 23,016 30,688 31,875 33,750 Santa Clara 52.5% 121,433 123,714 126,449 127,426 129,364 131,906 131,906 96,667 128,889 133,875 141,750

Redding 35% 80,955 82,476 84,300 84,951 86,243 87,938 87,938 64,445 85,926 89,250 94,500

Big Horn 2 (2/8) 154,200 157,098 160,571 161,811 164,272 167,500 167,500 122,752 163,669 170,000 180,000

Modesto 65% 100,230 102,113 104,371 105,177 106,777 108,875 108,875 79,789 106,385 110,500 117,000 Santa Clara 35% 53,970 54,984 56,200 56,634 57,495 58,625 58,625 42,963 57,284 59,500 63,000

Redding 0% - - - - - - - - - - -

Total Pre-2018 Post-2017Modesto 244,793 249,392 254,906 256,875 260,782 265,906 265,906 194,868 259,824 269,875 150,750 39.69% 33.50%

Santa Clara 256,358 261,175 266,949 269,011 273,102 278,469 278,469 204,075 272,100 282,625 204,750 41.56% 45.50%Redding 115,650 117,823 120,428 121,358 123,204 125,625 125,625 92,064 122,752 127,500 94,500 18.75% 21.00%

TOTAL 616,800 628,390 642,283 647,244 657,088 670,000 670,000 491,007 654,676 680,000 450,000 100.00% 100.00%

10/28/16 GENERAL COUNSEL M-S-R PPA 2017 Budget Detail Rev 10-27-16.xls


Description 2011 Actuual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2016 Mid-Year Budget

2016 YTD 2016 Expected 2017 2018 Notes

GENERAL COUNSEL

Generation 36,440 41,049 67,082 137,291 131,881 40,000 40,000 21,205 28,273 40,000 20,000 Includes support of SJGS negotiations. Support of Closing of SJGS divestiture in 2017. Legacy liabiity issues post-2017.

Transmission 2,459 360 715 7,678 14,673 20,000 15,000 7,964 10,619 2,000 2,000 2014 Review of SWTP Options. 2015 Implementation of RFO and Negotiation of PSA re Meads Interests. Although sale of Meads assets expected to close in Q2 2016, will budget status quo in 2016. Will show minimal level of support in 2017 for misc activities.

Renewable

1,360

1,320 5,885 990 1,694 2,000 2,000 880 1,173 10,000 2,000 Potential Contract Amends re VERBs and F&S proxy adjustments - late 2016 start.

Administrative & General 13,183 18,482 42,485 30,649 24,709 20,000 25,000 20,205 26,940 30,000 30,000 Support triple historic Tech C'tee mtgs in 2013 and carryover into 2014 & 2015. Return to historic levels in 2016 & 2017

TOTAL 53,441 61,211 116,167 176,608 172,957 82,000 82,000 50,254 67,005 82,000 54,000


10/28/16 GENERAL MANAGER M-S-R PPA 2017 Budget Detail Rev 10-27-16.xls


Description 2011 Actuals 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2016 Mid-Year Budget

2016 YTD 2016 Expected 2017 2018 Notes

GENERAL MANAGER

Generation 120,946 155,910 149,210 169,450 147,001 160,000 160,000 62,628 83,504 100,000 80,000

Transmission 24,830 39,726 19,772 27,823 20,132 20,000 20,000 18,160 24,213 20,000 20,000

Renewable 35,357 30,694 47,183 28,635 28,395 50,000 50,000 33,322 44,429 90,000 100,000

Administrative & General 85,937 59,825 74,269 58,392 82,299 70,000 70,000 90,360 120,480 90,000 100,000

TOTAL 267,070 286,155 290,434 284,301 277,827 300,000 300,000 204,470 272,627 300,000 300,000

10/28/16 LEGAL SERVICES M-S-R PPA 2017 Budget Detail Rev 10-27-16.xls




2017 2018 Notes

LEGAL SERVICES

GenerationDuncan Weinberg 25,166 32,753 20,000 10,000 4,390 4,390 20,000 5,000 SJSG FERC-filed Agreements. Fuel &

Capital Funding, Restructuring Agreements & SJPPA revisions. Also TEP& PNM IAs and Schedules (2016 or 2017) PNM 205 filing in 2017 re Exit Date Amendment.

Duncan - OtherDuncan Weinberg Experts

Law Offfices of Susie Berlin 63,069 104,914 58,264 28,702 21,351 25,000 50,000 40,574 60,861 25,000 25,000 CARB Matters (AB32 Gen'l & Cap and Trade). SB1368 Compliance and GHG reporting isues.

Law Offices of Susie Berlin - OtherAF Legal ServicesAF Legal - Other

Louis Rose/Others - Other 23,776 2,461 979 14,801 41,993 30,000 5,000 1,148 1,722 5,000 5,000 NMED/EPA Regional Haze. NM-PRC.TOTAL 86,845 107,375 59,243 68,669 96,097 75,000 65,000 46,112 66,973 50,000 35,000

TransmissionDuncan Weinberg 784,160 856,790 622,358 379,851 347,386 350,000 350,000 237,526 356,289 300,000 250,000 Regular FERC ($250k). Assume TO6

for settlement track commenced summer 2011 and concluded fall 2013. Annual TO formula compliance filings thereafter. ($100k) Revisit strategy and allocations when SCE ETC terminated and/or RFO implementation. Support BH1 & 2 deliveries as needed.

Duncan - Other 24,086 4,156 5,086 10,000 5,000 4,667 7,001 - Support for potential CAISO transition in 2013 deferred to 2014 & 2015 per Xmn White Paper ($200k FERC/TRR). Support RFO implementation/PTO activies in alternate in 2015. Support closing sale of Meads interests in 2016.

Duncan Weinberg Experts 75,000 8,261 - - - - - - - Depreciation & ROE re TO6 ($30k) and Annual compliance ($10k) Note: External experts not used since 2012

Law Offfices of Susie BerlinLaw Offices of Susie Berlin - Other

AF Legal ServicesAF Legal - Other

Louis Rose/Others - Other - - - - - - - Support for potential CAISO transition in 2013 deferred to 2014 & 2015 per Xmn White Paper ($150k PTO & TCA.) Provider TBD. Not needed with success of Meads RFO.

TOTAL 859,160 865,051 646,444 384,007 352,472 360,000 355,000 242,193 363,290 300,000 250,000

RenewableDuncan Weinberg 64,419 102,206 51,905 9,945 28,952 25,000 25,000 11,857 17,786 25,000 25,000 Gen'l OMP/BPA Support

Duncan - Other 72,126 284,214 278,234 300,000 270,000 99,761 149,642 300,000 300,000 BPA Rate Cases including BP-14, BP-16, BP-18 & Successors. Also BPA Environ Dispatch case at FERC & Federal Ciircuit Court - OS-14 & Successors. Note: Ann Fisher replaced by DWG&P eff 9/13.

Duncan Weinberg ExpertsLaw Offfices of Susie Berlin 41,703 39,002 38,508 15,461 25,089 30,000 60,000 31,752 47,628 50,000 50,000 CEC RPS Regulations (SB1x2) and

ImplementationLaw Offices of Susie Berlin - Other

AF Legal Services 156,376 171,420 5,422 - - - - General PNW Matters (Note: Ann Fisher replaced by DWG&P eff 9/13)

AF Legal - Other - BPA Rate Case 88,860 - - - - Support BPA Rate Case (Note: Ann Fisher replaced by DWG&P eff 9/13)

AF Legal - Other - OMP 33,940 - - - - Support OMP Litigation (in coord w/ DWG&P) (Note: Ann Fisher replaced by DWG&P eff 9/13)

Louis Rose/Others - OtherTOTAL 262,498 312,627 290,761 309,620 332,275 355,000 355,000 143,370 215,055 375,000 375,000

Administrative & GeneralDuncan Weinberg

Duncan - OtherDuncan Weinberg Experts

Law Offfices of Susie Berlin 2,918 3,079 2,480 4,215 4,993 5,000 20,000 9,797 14,696 15,000 15,000 Law Offices of Susie Berlin - Other

AF Legal ServicesAF Legal - Other

Louis Rose/Others - OtherTOTAL 2,918 3,079 2,480 4,215 4,993 5,000 20,000 9,797 14,696 15,000 15,000

TOTALS 1,211,421 1,288,132 998,928 766,511 785,837 795,000 795,000 441,472 660,013 740,000 675,000

692,411 BY LAWYER:

Duncan Weinberg 848,579 958,996 674,263 414,962 409,091 395,000 385,000 253,773 378,465 345,000 280,000 Duncan - Other - - 96,212 288,370 283,320 310,000 275,000 104,428 156,642 300,000 300,000

Duncan Weinberg Experts 75,000 8,261 - - - - - - - - - McCarthy & Berlin 107,690 146,995 99,252 48,378 51,433 60,000 130,000 82,123 123,185 90,000 90,000

McCarthy & Berlin - Other - - - - - - - - - - - AF Legal Services 156,376 171,420 5,422 - - - - - - - - AF Legal - Other - - 122,800 - - - - - - - -

Louis Rose/Others - Other 23,776 2,461 979 14,801 41,993 30,000 5,000 1,148 1,722 5,000 5,000 TOTAL 1,211,421 1,288,132 998,928 766,511 785,837 795,000 795,000 441,472 660,013 740,000 675,000

BY FUNCTION:Generation 63,069 104,914 58,264 53,868 54,104 45,000 60,000 44,964 65,251 45,000 30,000

Generation - Other 23,776 2,461 979 14,801 41,993 30,000 5,000 1,148 1,722 5,000 5,000 Transmission 859,160 865,051 622,358 379,851 347,386 350,000 350,000 237,526 356,289 300,000 250,000

Transmission - Other - - 24,086 4,156 5,086 10,000 5,000 4,667 7,001 - - Renewable 262,498 312,627 95,835 25,406 54,041 55,000 85,000 43,609 65,414 75,000 75,000

Renewable - Other - - 194,926 284,214 278,234 300,000 270,000 99,761 149,642 300,000 300,000 Admin & General 2,918 3,079 2,480 4,215 4,993 5,000 20,000 9,797 14,696 15,000 15,000

Admin & General - Other - - - - - - - - - - - TOTAL 1,211,421 1,288,132 998,928 766,511 785,837 795,000 795,000 441,472 660,013 740,000 675,000


10/28/16 OUTSIDE SERVICES M-S-R PPA 2017 Budget Detail Rev 10-27-16.xls




2017 2018 Notes

OTHER SERVICES

GenerationGovernment Affairs

Consulting/Politico Group12,000 12,000 12,000 12,000 12,000 12,000 12,000 10,170 13,560 14,000 14,000 State Legislative Advocacy

Ferguson Group 3,431 2,984 5,090 5,000 5,000 2,403 2,403 5,000 5,000 Federal legislative advocacy & APPA Leg Rally support - Moved from Consultingstarting in FY 2016

Platts 1,500 1,500 1,500 1,500 1,500 IndicesTOTAL 12,000 12,000 15,431 14,984 18,590 18,500 18,500 12,573 15,963 20,500 20,500

TransmissionOtherTOTAL - - - -

RenewableGovernment Affairs

Consulting/Politico Group12,000 12,000 12,000 12,000 12,000 12,000 12,000 10,170 13,560 14,000 14,000 State Legislative Advocacy

Ferguson Group 3,431 2,984 5,090 5,000 5,000 2,403 2,403 5,000 5,000 Federal legislative advocacy & APPA Leg Rally support - Moved from Consultingstarting in FY 2016

WREGIS Transaction Fees 1,662 4,813 4,311 4,740 3,267 5,000 5,000 2,979 4,469 5,000 5,000 Platts 1,500 1,500 1,500 - 1,500 1,500 1,500 IndicesTOTAL 13,662 16,813 19,742 19,723 21,856 23,500 23,500 15,552 21,932 25,500 25,500

Administrative & GeneralBloomberg Government - - 1,425 5,700 5,820 5,940 5,940 4,455 5,940 5,940 5,940 $20/month Rate Increase

effective October 1, 2015.Web-Hosting - - - - - - Note: Costs not segregated

in records - billed in GM expenses.

Web Design/Maintenance - - 11,870 - 6,480 2,500 2,500 3,600 3,600 3,600 3,600 Website redo in 2014 - $11,870 acrued in 2013. Maint agree signed in 2015 w/Baytech.

TOTAL - - 13,295 5,700 12,300 8,440 8,440 8,055 9,540 9,540 9,540

GRAND TOTAL 25,662 28,813 48,468 40,407 52,746 50,440 50,440 36,179 47,434 55,540 55,540

Outside Services

10/28/16 TRAVEL & MEETINGS M-S-R PPA 2017 Budget Detail Rev 10-27-16.xls


Description 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Budget2016 Mid-Year

Budget 2016 YTD2016

Expected 2017 2018 Notes

TRAVEL & MEETINGS

Generation 1,000 5,159 981 7,900 - 1,000 1,000 - - 1,000 1,000

2014 includes hosting SJ E&O C'tee in Sacramento, CA

TransmissionRenewable 6,825 1,728 - - 2,500 2,500 - - 2,500 2,500 Administrative & General 1,000 1,672 33 - - 1,000 1,000 - - 1,000 1,000

TOTAL 2,000 13,655 2,742 7,900 - 4,500 4,500 - - 4,500 4,500

2011 No Trips2012 Big Horn Spring2013 San Juan Spring - Cancelled2014 Big Horn Spring - Cancelled2015 San Juan Fall - Not Scheduled2016 Big Horn Spring - Not Scheduled2017 Big Horn Requested by RDD

Public Power Agency

2017 Draft Budget

November 03, 2016

MSR PUBLIC POWER AGENCY SUMMARY

2017 BUDGET

2016 2016 2017 Budget Year To Date Budget

Estimated

FUNDS PBOYIDED·

Operating Revenue 140,603,393 128,988,900 129,709,562 Other Revenue 5,765,000 1,745,000 3,670,000

146,368,393 130,733,900 133,379,562

FUNDS APPLIED:

Agency Administration & General 453,440 515,250 500,500 Agency Debt Administrative 143,000 142,000 89,000 Generation Administrative & General 845,750 583,200 637,500 Generation Plant Costs 3,850,000 3,801,800 1,970,000 Renewable Administrative 981,750 831,300 1,080,000 Transmission Expenditures 1,282,770 988,800 3152,000 Purchase Power-Big Hom 1 35,372,088 34,535,000 35,372,213 Purchase Power-Big Horn 2 15,503,400 15,440,000 15,666,600 Generation Fuel 36,147,287 27,500,000 33,976,892 Generation Operation & Maintenance 10,146,000 9,245,000 8,944,000 Transmission Losses 643,658 62,500 Generation Capital Transmission Capital 90,000 Interest Expense-Generation 8,657,300 8,857,300 7,165,857 Interest Expense-Transmission 281,950 281,950 Principal Payments-Generation 24,675,000 24,675,000 23,955,000 Principal Payments-Transmission 1,730,000 1,730,000 Debt Service Fund Capital Distribution 3,300,000

140,603,393 128,988,900 133,009,561

SUBPLUS (DEEICII) BEll:EfllUE 5,765,000 1,745,000 370,000

Page 1

2018 Budget

Estimate

83,905,530 3,670,000

87,575,530

484,500 89,000

188,500 15,000

1, 101,000 302,000

35,372,213 15,594,000

6,368,817

24,392,500

3,300,000

87,205,530

370,000

MSR PUBLIC POWER AGENCY 2017 Budget Summary

JAN FEB tAAR ~i!i MAY jij'f;j ,.!!,!!. AUG SEP OCT t:!QV !§ !2TN.. I BEeMUE EBOM llEllBEBS

Modestll lrrlgalion Dlstr1ct 4,370,578 4,331,420 4,714,859 4,630,361 4,474,443 4,400,857 4,027,168 4,065,130 4,040,052 4,187,203 4,313,751 4,370,797 51,926,618 City ol Santa Clara 4,298,924 4,266,185 4,934,912 4,930,134 4,663.583 4,658,822 4,131,805 4,194.150 3,991,838 4,197,741 4,320,813 4,325,776 52,914,663 City ol Redding 1,986,698 1,942,188 2,332,053 2,356,699 2,22~,303 1~~~~ 1,974,169 2,006,~6 1,859,370 1,964,016 1,998,599 1,~427 24,1168.281

TOTAL 10,666,201 10,539,794 11,981,823 11,916, 193 11,361,309 10,133,142 10,265,5457 9 ,891,260 10,348,969 10,633,163 10,0:999 129,7090562

DUQGEI AIHJUllD t muE U! :LEAB EMC! Agency Administration & Generlll 54,925 54.925 54.925 M.926 M.925 M,925 28,492 28,492 28,492 28,492 28,492 28,492 500,t;OO Agency Debi Adrrinistrallve 7,417 7,417 7,417 7,417 7,417 7,417 7,417 7,417 7,417 7,417 7,417 7,417 89,000 Generation Admlnlslrati.., & General 53. 125 53.125 53.125 53,12:; 53,125 53,125 53,125 53,125 53,125 53.125 53.125 53,125 637,t;OO G8-lllion Plant Casis 164,167 164,167 164,167 184,167 184,167 184,167 184.167 164,167 164.167 164.167 164.167 164,167 1.970,000 Transmission Expendilllres 29,333 29,333 29,333 29,333 29.333 29,333 29.333 29,333 29,333 29.333 29.333 29.333 3152,000 lnteres1 Expense-Generation 619,971 819,971 819,971 819,971 819,971 619.971 574,339 574,339 574,339 574,339 674,339 674,339 7,185.857 lntereal Expens&-TransmlS$lon 0 0 0 0 0 0 0 0 0 0 0 0 0 Principal Payrnenla-Oeneratlon 2,078,333 2 ,078,333 2,078,333 2,078,333 2,078,333 2,078,333 1,914,167 1,914,167 1,914,167 1,914,167 1,914,167 1,914,167 23,956,000 Princlpll P~ Transml$slon 0 0 0 0 0 0 0 0 0 0 0 0 0

ALLOCAl'E> 50136115 3,007,ii'fl 3,001,gr1 3,007,271 !;001,211 3,007,271 3,!!Q1211 2,n1 1039 2,n1,039 2,n1,039 21n1.0S11 2.771,039 ~,'71 ,039 34,i!iiii,857

BUllf3EI MIOUHIB llBHE U! !EAB EHl:I -.ble Admlnlan11V9 54,013 54,013 54,013 M.OIS 5",083 5",013 55,013 55,083 55,013 55,013 55,013 55,113 6515,000 ALLOCATEO 23149128 MID 12,439 12,439 12,439 12.439 12,439 12,439 12,669 12,669 12,669 12,669 12,669 12,669 SC 26,501 26,501 26,501 26,501 26,501 26,501 26,991 26,991 26,991 26,991 26.991 26,991 REU 15,143 15,143 15,143 15,143 15,143 15.143 16.423 15.423 15,423 15,423 15,423 15,423

flelWW8ble Aclmln Coordlna~ng SVc 35,4'7 35, .. 17 35,417 35,417 35,417 35,417 35,417 35,417 35,417 35,417 35,417 35,417 425,000 ALLOCATED 39.69141.56118.75 MID 14,057 14,057 14,057 14,057 14,057 14.057 14,057 14,057 14,057 14,057 14,057 14.057 SC 14,719 14,719 14,719 14,719 14,719 14,719 14,719 14,719 14.719 14,719 14,719 14,719 REU 6,641 6,641 6,641 6,641 6,641 6,641 6,641 6,641 6,641 6,641 6,641 6,641

Transmission Contract (SCE) 0 0 0 0 0 0 0 0 0 0 0 0 0 AU.OCAl'E> kWIDOOlkW

89,~Q 89,~ 89,t>OO 89,t>OO 89,5iio l!!i,!!Oo 90,!!ilo 90,ooo 90,500 90,500 90,500 !!Q,500 1,gao,000

"lJIAI llABIAILE AMCIUMJI Purdlase P.....,r-Blg Horn 1 2,623,540 2,613,853 3,612,145 3,730,268 3,300,839 3,40!5,149 2,69&,638 2,788,474 2,409,1119 2,659,039 2,808,411 2,723,038 35.3n.213 Purchase -.-e1g Horn 2 1,307,042 1,429,381 1,844,059 1,1564,236 1,334,861 1,2&4,315 955,001 996,490 1,084,886 1,199,533 1,428,296 1,469,530 15,666,600 GenenllionFuel 2,883,514 2,554,475 2,883,514 2,789,583 2,883,614 2,7811,583 2,874,730 2,874,730 2,789,583 2,883,514 2,789,583 2,880,569 33.976,892 Transmission losses 0 0 0 0 0 0 0 0 0 0 0 0 0

8,814,096 8 1e97,689 ii,139,718 8,074,088 7,519,204 7,480,047 6,~l!!!!! 8,668,11114 8,284,387 8,742,088 7,026~ 7,!ll!l,137 85,016,705

&CnlM. MIDI tHDl (QW?:ilEBSHI! BtlABE) GaneraUon Opera1ion & Malnlenance 746,333 746,333 745,333 745,333 745.333 745.333 745,333 745,333 745,333 746,333 746,333 746,333 8.944,000 Generation C&pltal 0 0 0 0 0 0 0 0 0 0 0 0 0 Transmission C8pltal g 0 0 0 0 0 0 0 Q 0 0 0 0 ALLOCATED scwsns 7~333 7~333 745,333 746.333 746.333 746,333 746,333 746,333 746,333 746,333 745,333 '145,333 8,M4.ooo

TOTAL 10,666,200 10,639,793 11,iiii1,822 11,918,192 11,381 ,308 11,3i5211s1 10,1~141 10.~5ee 9,891,259 10,348,958 10,533,182 10,eeG,009 129,709,561

Poge2

MSR PUBLIC POWER AGENCY 2018 Budget Summary

JAN FEB MAR APR MAY ' JUN JUL AUG SEP OCT NOV DEC TOTAL

.BE.Y.EfilJE FROM MEMBERS

Modesto Irrigation District 2,495,436 2,573,970 2,840,416 2,796,807 2,599.358 2.566,702 2,335,884 2,373,931 2.384.274 2,490,588 2,658,686 2,674,753 30,790,805 City of Santa Clara 2,781,747 2,819,619 3,418,111 3,448,470 3,146.418 3,176,834 2,738,922 2,801,313 2,634,337 2,805,131 2,963,696 2,933,468 35,668,065 City of Redding 1,331,537 1,328,153 1,676,892 1,71!!,156 1,568,142 1,604,9~ 1,375,266 1,407,383 1,275,140 1,362,167 1,414,36~ 1,384,524 17,446,660

TOTAL 6,608,720 6,721,743 7,935,419 7,963,433 7,313,918 7,348,487 8,450,072 6,582,626 8,293,752 6,657,886 7,006,751 6.992,745 83.905.530

BUtlliEI AllKIUffIS l IBUE ue IEAB EttQ Agency Aclminis1ration & General 53,592 53.592 53,592 53,592 53,592 53,592 27,158 27,158 27,158 27,158 27,158 27,158 484,500 Agency Debt Administrative 7,417 7,417 7,417 7,417 7,417 7,417 7,417 7,417 7,417 7,417 7,417 7,417 89,000 Generation Administrative & General 15,542 15,542 15,542 15,542 15,542 15.542 15,542 15,542 15,542 15,542 15,542 15,542 186,500 Generation Plant Cosl& 2,500 2,500 2,500 2,500 2,500 2,500 0 0 0 0 0 0 15,000 Transmission Expenditures 25,167 25,167 25,167 25,167 25,167 25,167 25,167 25,167 25,167 25,167 25,167 25.167 302,000 Interest Expense-Generation 574,061 574,051 574,061 574,051 574,051 574,051 487,418 487,418 487,418 487,418 487,418 487,418 6,388,817 Interest Expenae-TransmlsaiQn 0 0 0 0 0 0 0 0 0 0 0 0 0 Prindpal Payments-Oeneration l,914,167 1,914,187 1.914,167 1,914,187 1,914,167 1,914,187 2,151,250 2,151,250 2, 151,250 2,151,250 2,151,250 2,151,250 24,392,500 Prindpal Payments-Transmission 0 0 0 0 0 0 0 0 0 0 0 0 0

ALLOCATED Sot35115 2,592,435 2,592,435 2,592,435 2,5112,435 2,592,435 2,592,435 2,713,951 2,713,951 2,713.1151 2,713,951 2,713,951 2,713,1151 31,838,317

BUIHIEIAMCUtaSlIBUEUl!!lf;ABEtttl Renewable Administrative 54,250 54,250 54,250 54,250 54,250 54,250 54,250 54,250 54,250 54,250 54,250 54,250 651,000 ALLOCATED 23/49"Z8 Renewable Admin Coordinating Svc 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 450,000 ALLOCATED 39.69(41.&111'18.75 Transmission Contra~ (SOE) 0 0 0 0 0 0 0 0 0 0 0 0 0 ALLOCATED kW/000/ltW

91,750 91,750 91,7!50 91,750 91,750 91,7!50 91,750 91,750 91,750 91,750 91,750 91,750 1,101 ,000

ACILIAL ~ABIAQLE AMOUlllIS Purchase PoWer·Big Hom 1 2,6Z3,540 2,613,853 3,612,145 3,730,268 3,300,839 3.406,149 2,696,538 2,788,474 2,409,919 2,659,039 2,806,411 2,723,036 35,372,213 Purchase Power-Big Hom 2 1,300,996 1,423,706 1.639,090 1,548,961 1,326,895 1.258,134 947,832 988.450 1,(178,131 1,193,144 1,422,637 1,464,004 15,594,000 Generallon Fuel 0 0 0 0 0 0 0 0 0 0 0 0 0 Transmission Losses 0 0 0 0 0 0 0 0 0 0 0 0 0

3,924,~ 4,~,559 5,251,235 512791249 4,629,734 4,664,283 3,644,370 3,n6,924 3,488,050 3,852,184 4,231,049 4,187,042 501!!!!!!,213

ACTUAL AMDUl'lIS (OWNEBS!:lll!! B!:IABE) Generation Operation & Maintenance 0 0 0 0 0 0 0 0 0 0 0 0 0 Generation Capital 0 0 0 0 0 0 0 0 0 0 0 0 0 Transmission Capita! 0 0 0 0 0 0 0 0 0 0 0 0 0 ALLOCATED 511135115 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL 6,!!08.721 6,721,744 7,935,419 7,963,434 71313,918 7,348,4611 6,450,072 tl,582,625 6,293,751 6,1167,886 7,036,750 6,992,743 83.905.530

Page3

MSR PUBLIC POWER AGENCY PROJECTED DEBT SERVICE CALCULATION

Debt 8enrlc:e Requirements

Series 2008L Bonds Interest Expense Series 2008M Bonds Interest Expense Serles 2008N Bonds Interest Expense Serles 2013P Bonds Interest Expense Series 20140 Bonds Interest Expense Series 20110 Bonds Interest Expense-SW

Serles 2008L Bonds Principal Payment Serles 2008M Bonds Principal Payment Series 200BN Bonds Principal Payment Series 2013P Bonds Principal Payment Series 20140 Bonds Interest Expense Serles 20110 Bonds Principal Payment-SW

Total Debt Service

Operating Revenue Other Revenue Operating Expense Interest Expense Included in Operating Expenses Debt Service Principal included in Operating Expenses Capital included in Operating Expenses San Juan Reclamation Trust included in Operating Expense Subtotal - Net Revenue

Debt Service Coverage

Required Debt Service Coverage

Net Revenue Required (110% of Debt Serviee)

Net Revenue

Additional Revenue Required for Coverage

129,709,562 3,670,000

(129,709,561) 7,165,857

23,955,000

34,790,857

Page4

2017

4,565,625 1,494,736

962,306

143,190

13.410,000

10,545,000

31,120,857

1.118

1.100

34,232,942

34,790,857

(557,915)

83,905,530 3,670,000

(83,905,530) 6,368,817

24,392,500

34,431 ,317

2018

3,895,125 1,494,736

962,306

16,650

23,005,000

1,387,500

30,761 ,317

1.1 19

1.100

33,837,449

34,431,317

(593,868)

ACTIVITY Operating Revenue

Account Code DESCRIPTION

Modesto Irrigation District City of Santa Clara City of Redding

MSR PUBLIC POWER AGENCY 2017 BUDGET

YTD 2017 2016 REVISED ESTIMATED JAN-JUN

BUDGET 12/31/16 BUDGET

2017 JUL-DEC BUDGET

2017 2018 2018 2018 TOTAL JAN-JUN JUL-DEC PROJECTED

BUDGET BUDGET BUDGET BUDGET

$57,311,888 $53,635,374 $26,922,518 $25,004,100 $51,926,618 $15,872,689 $14,918,116 $30,790,805 56,832,259 51,306,122 27,752,539 25,162,124 52,914,663 18,791,199 16,876,866 35,668,065 26.459,246 24,047,404 13,082,415 11,785,866 24,868,281 9,227,811 8,218,849 17,446,660

$140,603,393 $128,988,900 $67, 757A72 $61,952,089j S129,709.562! $43,891,699 $40,013,831 $83,905,530

Pages

ACTIVITY Other Revenue


750130.4190000 Interest Income - General Fund Interest Income - Transmission

750131.4190000 Interest Income- Reserve Funds Debt Service Coverage Fund Inventory Payment Marketplace Connection Allocation San Juan Restructing Fee


2016 vrD 2017 REVISED ESTIMATED JAN-JUN BUDGET 12131/16 BUDGET

$170,000 $170,000 $85,000 0 0 0

200,000 200,000 100,000 0 1,375,000 1,650,000

8,230,000 0 0 0 0 0

(2,835,000)

2017 JUL-DEC BUDGET

$85,000 0

100,000 1,650,000

0 0

2018 2018 2018 2017 TOTAL JAN-JUN JUL-DEC PROJECTE

BUDGET BUDGET BUDGET DBUDGET

$170,000 $85,000 $85,000 $170,000 0 0 0 0

200,000 100,000 100,000 200,000 3,300,000 1,650,000 1,650,000 3,300,000

0 0 0 0 0 0 0 0

$5,765,ooo $1 ,745,ooo $1,835,ooo $1,835,ooo! $3.670.000! $1,835,ooo $1,835,ooo $3,670,000

Page6

ACTIVITY Generation Operation & Maintenance


301302.xxxxxxx San Juan Coal & Fuel 301302.xxxxxxx San Juan Operation & Maintenance

No Schedule Outage for 2017

MSR PUBLIC POWER AGENCY 2017BUDGET

2016 YTD 2017 REVISED ESTIMATED JAN-JUN BUDGET 12/31/16 BUDGET

2017 2017 JUL-DEC TOTAL BUDGET BUDGET

$36,147,287 $27,500,000 $16,884,183 $17,092,709 $33,976,892 10, 146,000 9,245,000 4,472,000 4,472,000 8,944,000

$46,293,287 $36,745,000 $21,356, 183 $21,564,709! $42.920,892!

Page r

2018 JAN-JUN BUDGET

$0 0

$0

2018 JUL-DEC BUDGET

$0 0

$0

2018 PROJECTED

BUDGET

$0 0

$0

ACTIVITY Generation Plant Cost


302301.9230000 San Juan Audit Fees 301303.4081000 San Juan Property Taxes

San Juan Demand Charge San Juan Reclamation Trust San Juan Decommssion Trust


2016 YTD 2017 REVISED ESTIMATED JAN-JUN BUDGET 12131/16 BUDGET

10,000 6,600 0 no,ooo 725,000 350,000

1,270,000 1,270,000 635,000 1,800,000 1,800,000 0

0 0 0

2017 2017 2018 JUL-DEC TOTAL JAN-JUN BUDGET BUDGET BUDGET

0 0 15,000 350,000 700,000 0 635,000 1,270,000 0

0 0 0 0 0 0

$3,850,000 $3,801,600 $985,000 $985,@ $1 .970,000! $15,000

Page s

2018 2018 JUL-DEC PROJECTED BUDGET BUDGET

0 15,000 0 0 0 0 0 0 0 0

$0 $15,000

ACTIVITY Transmission

Account COde DESCRIPTION

403302.xxxxxxx Mead-Adelanto Operation & Maintenance 401302.xxxxxxx Mead-Phoenix Operation & Maintenance

Property Taxes (M-P, M-A) 405302.5650000 Transmission Contract (LDWP) 406316.5650000 Transmission Contract (SCE) 402312.5650000 Transmission Losses (WALC)



$173,900 $70,000 $0 119,300 90,000 0 105,000 65,000 0 369,570 308,000 0

0 0 0 643,658 62,500 0

$1,411,428 $595,500 $0

Page9

2017 2017 2018 2018 2018 JUL-DEC TOTAL JAN-JUN JUL-DEC PROJECTED BUDGET BUDGET BUDGET BUDGET BUDGET

$0 $0 $0 $0 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

sol $0 $0 $0

ACTIVITY Purchase Power


504313.55500xx Purchase Power-Big Horn 1 504313.5550012 Purchase Power-Big Horn 2



2017 JUL-DEC BUDGET

2017 2018 2018 2018 TOTAL JAN-JUN JUL-DEC PROJECTED

BUDGET BUDGET BUDGET BUDGET

$35,372,088 $34,535,000 $19,286,793 $16,085,420 $35,372,213 $19,286,793 $16,085,420 $35,372,213 15,503,400 15,440,000 8,533,866 7, 132,734 15,666,600 8,499,802 7,094, 198 15,594,000

$50,875,488 $49,975,000 $27,820,659 $23,218,153! $51.038.8131$27,786,595 $23,179,618 $50,966,213

Page 10

ACTIVITY Agency Administration & General


701202.9250000 General Insurance 701206.9210000 Postage 701207.9210000 Office Supplies 701209.9230000 Registration License 701301. 9230000 Audit Fees 710310.9230000 Administration Services 701315.9230000 Bank Fees

MSRPUBLICPOWERAGENCY 2017 BUDGET


$115,000 $110,000 $115,000 200 50 50 200 100 100

11,000 12,400 8,500 71,600 70,000 57,600 92,000 92,000 46,000 4,000 4,000 2,000

$294,000 $288,550 $229,250

Page 11

2017 2017 2018 2018 2018 JUL-DEC TOTAL JAN-JUN JUL-DEC PROJECTED BUDGET BUDGET BUDGET BUDGET BUDGET

$0 $115,000 $115,000 $0 $115,000 50 100 50 50 100

100 200 100 100 200 8,500 17,000 9,500 9,500 19,000

14,000 71,600 57,600 14,000 71,600 46,000 92,000 47,000 47,000 94,000

2,000 4,000 2,000 2,000 4,000

$70,650) $299,900! $231,250 $72,650 $303,900

ACTIVITY Agency Debt Administrative


702204.9230000 Arbitrage Rebate 702208.9230000 Remarketing Fees 702303.9230000 Bond Counsel 702303.9230001 Bond Counsel-Other 702308.9230000 Financial Services 702314.9230000 Trustee Fees

MSRPUBLICPOWERAGENCY 2017 BUDGET

2016 YTD 2017 REVISED ESTIMATED JAN-JUN BUDGET 12131/1 6 BUDGET

$0 $0 $0 0 0 0

10,000 2,900 5,000 50,000 42,000 0 53,000 72,100 26,500 30,000 25,000 13,000

2017 JUL-DEC BUDGET

$0 0

5,000 0

26,500 13,000

2017 2018 2018 TOTAL JAN..JUN JUL-DEC

BUDGET BUDGET BUDGET

$0 $0 $0 0 0 0

10,000 5,000 5,000 0 0 0

53,000 26,500 26,500 26,000 13,000 13,000

$143,000 $142,000 $44,500 §44.500! $89.00§! $44.500 $44,500

Page 12

2018 PROJECTED

BUDGET

$0 0

10,000 0

53,000 26,000

$89,000

ACTIVITY Consulting/Engineering


302304.9230000 Generation 302304.9230001 Generation-Other 407304.9230000 Transmission 407304.9230001 Transmission-Other 503304.9230000 Renewable 503304.9230001 Renewable -Other 701304.9230000 Administrative & General 701304.9230001 Administrative & General-Other


2016 YTD 2017 REVISED ESTIMATED JAN.JUN BUDGET 12131/16 BUDGET

$100,000 $141,900 $85,000 0 0 0

65,000 53,900 15,000 50,000 3,800 0 50,000 74,700 25,000 80,000 63,800 47,500 55,000 54,900 27,500

0 0 0

2017 2017 2018 2018 JUL-DEC TOTAL JAN.JUN JUL-DEC BUDGET BUDGET BUDGET BUDGET

$85,000 $170,000 $15,000 $15,000 0 0 0 0

15,000 30,000 15,000 15,000 0 0 0 0

25,000 50,000 25,000 25,000 47,500 95,000 47,500 47,500 27,500 55,000 12,500 12,500

0 0 0 0

$400,000 $393,000 $200,000 $200,000! $400,0§0! $115,000 $115,000

Page 13

2018 PROJECTED

BUDGET

$30,000 0

30,000 0

50,000 95,000 25,000

0

$230,000


ACTIVITY Coordinating Services


302311 .5560000 Generation Transmission

503311.5560000 Renewable Administrative & General

Coordinator costs are allocated to projects (San Juan, Big Horn 1 and Big Hom 2) based on work-load (contract count) and sub-allocated to members based on participating in each project. In total this results in 39.69°k-Modesto/41.56o/..-Santa Clara/18. 75%-Redding allocations of total Coordinator costs.

2016 REVISED BUDGET

$251,250 0

418,750 0

YTD ESTIMATED

12/31/16

$245,500 0

409,200 0

2017 JAN-JUN BUDGET

$127,500 0

212,500 0

2017 JUL-DEC BUDGET

$127,500 0

212,500 0

2017 TOTAL

BUDGET

$255,000 0

425,000 0

2018 JAN-JUN BUDGET

$0 0

225,000 0

2018 JUL-DEC BUDGET

$0 0

225,000 0

$670,000 $654,100 $340.000 $340,oom s6ao.ooo! $225,ooo $225,ooo

Page 14

2018 PROJECTED

BUDGET

$0 0

450,000 0

$450,000

ACTIVITY General Counsel

Account COde DESCRIPTION

302305.9230000 Generation 407305.9230000 Transmission 503305.9230000 Renewable 701305.9230000 Administrative & General


2016 REVISED BUDGET

$40,000 20,000

2,000 20,000

$82,000

YTD ESTIMATED

12131/16

$28,300 10,600

1,200 27,000

$67,100

Page 15

2017 JAN-JUN BUDGET

$20,000 1,000 5,000

15,000

$41,000

2017 JUL-DEC BUDGET

$20,000 1,000 5,000

15,000

2017 TOTAL

BUDGET

$40,000 2,000

10,000 30,000

2018 JAN-JUN BUDGET

$10,000 1,000 1,000

15,000

$41,000! $82.000! $27,ooo

2018 JUL-DEC BUDGET

$10,000 1,000 1,000

15,000

$27,000

2018 PROJECTED

BUDGET

$20,000 2,000 2,000

30,000

$54,000

ACTIVITY General Manager


302306.9230000 Generation 407306.9230000 Transmission 503306.9230000 Renewable 701306.9230000 Administrative & General


2016 REVISED BUDGET

$160,000 20,000 50,000 70,000

YTD ESTIMATED

12/31/16

$83,500 24,200 44,400

120,500

2017 JAN-JUN BUDGET

$50,000 10,000 45,000 45,000

2017 JUL-DEC BUDGET

$50,000 10,000 45,000 45,000

2017 TOTAL

BUDGET

$100,000 20,000 90,000 90,000

2018 JAN-JUN BUDGET

$40,000 10,000 50,000 50,000

2018 JUL-DEC BUDGET

$40,000 10,000 50,000 50,000

$300,000 $272,eoo $150,000 $1so,ooffl $300,000! $150,ooo $150,000

Page 16

2018 PROJECTED

BUDGET

$80,000 20,000

100,000 100,000

$300,000

ACTIVITY Outside Legal Services


302309.9230000 Generation 302309 .9230001 Generation-Other 407309.9230000 Transmission 407309.9230001 Transmission-Other 503309.9230000 Renewable 503309.9230001 Renewable -Other 701309.9230000 Administrative & General 701309.9230001 Administrative & General-Other



$45,000 $65,300 $22,500 $30,000 $1,700 $2,500 350,000 356,300 150,000

10,000 7,000 0 55,000 65,400 37,500

300,000 149,700 150,000 5,000 14,700 7,500

0 0 0

2017 2017 2018 2018 JUL-DEC TOTAL JAN-JUN JUL-DEC BUDGET BUDGET BUDGET BUDGET

$22,500 $45,000 $15,000 $15,000 $2,500 $5,000 $2,500 $2,500

150,000 300,000 125,000 125,000 0 0 0 0

37,500 75,000 37,500 37,500 150,000 300,000 150,000 150,000

7,500 15,000 7,500 7,500 0 0 0 0

$795,000 $660,100 $370,000 $370,000 $740,000 $337,500 $337,500

Page 17

2018 PROJECTED

BUDGET

$30,000 $5,000

250,000 0

75,000 300,000

15,000 0

$675,000

ACTIVITY Outside Service


302312. 9230000 Generation 407312.9230000 Transmission 503312.9230000 Renewable 701312.9230000 Administrative & General


2016 REVISED BUDGET

$18,500 0

23,500 8,440

$50,440

YTD ESTIMATED

12131/16

$16,000 0

21,900 9,600

$47,500

Page 18

2017 JAN-JUN BUDGET

$10,250 0

12,750 4,800

$27,800

2017 JUL-DEC BUDGET

$10,250 0

12,750 4,800

$27,800

2017 TOTAL

BUDGET

$20,500 0

25,500 9,600

2018 JAN-JUN BUDGET

$10,250 0

12,750 4,800

$55,600 $27,800

2018 JUL-DEC BUDGET

$10,250 0

12,750 4,800

$27,800

2018 PROJECTED

BUDGET

$20,500 0

25,500 9,600

$55,600

ACTIVITY Travel & Meetings


302203.9210000 Generation Transmission

503203.9210000 Renewable 701203.9210000 Administrative & General

2017 Big Hom Tour, $6,000 (Hotel and Meals)


2016 REVISED BUDGET

$1,000 0

2,500 1,000

$4,500

YTD ESTIMATED

12131/16

$1,000 0

1,000 0

$2,000

Page 19

2017 JAN.JUN BUDGET

$1,000 0

1,750 500

$3,250

2017 JUL-DEC BUDGET

$1,000 0

7,750 500

2017 TOTAL

BUDGET

$2,000 0

9,500 1,000

$9,2so! s12.s00j

2018 JAN.JUN BUDGET

$500 0

1,750 500

$2,750

2018 JUL-DEC BUDGET

$500 0

1,750 500

$2,750

2018 PROJECTED

BUDGET

$1,000 0

3,500 1,000

$5,500

ACTIVITY Other Expenditures


750160.427xxxx Interest Expense-Generation 750160.427xxxx Interest Expense-Transmission 100000.221 xxxx Principal Payments-Generation 100000.221xxxx Principal Payments-Transmission


2016 REVISED BUDGET

$8,657,300 281,950

24,675,000 1,730,000

YTD ESTIMATED

12131/16

$8,657,300 281,950

24,675,000 1,730,000

2017 2017 2017 2018 2018 2018 JAN-JUN JUL-DEC TOTAL JAN-JUN JUL-DEC PROJECTE BUDGET BUDGET BUDGET BUDGET BUDGET DBUDGET

$3,719,824 $3,446,033 $7,165,857 $3,444,309 $2,924,508 $6,368,817 0 0 0 0 0 0

12,470,000 11,485,000 23,955,000 11,485,000 12,907,500 24,392,500 0 0 0 0 0 0

$35,344,250 $35,344,250 $16, 189,824 $14,931,033! $31, 120,857! $14,929,309 $15,832,008 $30,761,317

Page20

ACTIVITY Generation Capital


901302.3000000 San Juan Capital 950302.3000000 Mead-Phoenix capital 951302.3000000 Mead-Adelanto capital


2016 REVISED BUDGET

$0 0

90,000

$90,000

YTD ESTIMATED

12131/16

Page 21

$0 0 0

$0

2017 JAN.JUN BUDGET

$0 0 0

$0

2017 JUL-DEC BUDGET

$0 0 0

2017 TOTAL

BUDGET

$0 0 0

sol

2018 JAN.JUN BUDGET

$0 0 0

$0

2018 JUL-DEC BUDGET

$0 0 0

$0

2018 PROJECTED

BUDGET

$0 0 0

$0

2017 MSR PURCHASE POWER BUDGET

~ Wl .MM ~ .!!!}'. .!WI .IW. &Hi Ke ~ ~ ~ IQ!&.

SAN JUAN 2,883,514 2,654,475 2,883,514 2,789,583 2,883,514 2,789,583 2,874,730 2,874,730 2,789,583 2,883,514 2,789,583 2,880,569 33,976,892

LDWP 0 0 0 0 0 0 0 0 0 0 0 0 0

SCE 0 0 0 0 0 0 0 0 0 0 0 0 0

WALC 0 0 0 0 0 0 0 0 0 0 0 0 0

RENEWABLE, Big Hom I 2,623,540 2,613,853 3,612,145 3,730,268 3,300,839 3,406,149 2,696,538 2,788,474 2,409,919 2,659,039 2,808,411 2,723,038 35,372,213

RENEWABLE, Big Hom II 1,307,042 1,429,361 1,644,059 1,554,238 1,334,851 1,264,315 955,001 995,490 1,084,885 1,199,533 1,428,296 1,469,530 15,666,600

TOTAL MSR 6,814,096 6,697,689 8,139,718 8,074,088 7,519,204 7,460,047 6,526,269 6,658,694 6,284,387 6,742,086 7,026,290 7,073,137 85,015,705

Page22

.!!It fiB MM AeB MAY .wti .iw. &Ui. Be w ~ ~ IS2IA!. ~

Energy MID Basa(MWh) 44,000 40,000 44.000 42,600 44,000 42,600 43,800 43,800 42,600 44,000 42,600 44,000 518,000 Iner. (MWh) 0 0 0 0 0 0 0 0 0 0 0 0 0

Blu!KWh: 10700 Total MID (MWh) 44,000 40,000 44,000 42,600 44,000 42,600 43,800 43,800 42.600 44,000 42,600 44,000 518,000 MMBtulTM 19.514

S-($/MU8tu~ 2.511! SNCL Base (MWhl 37,800 35,400 37,800 36,600 37,800 36,600 37,800 37,800 36,600 37,800 36,600 37,800 446,400 Inc•, ($/MMBlu~ 0 lncr.(MWh) 0 0 0 0 0 0 0 0 0 0 0 0 0 O&M Addor_&MW!]t 1.115 Total SNCL (MWh) 37,800 35.400 37,800 36,600 37,800 36,600 37,800 37,800 36,600 37,800 36,600 37,800 446,400 (See Note 1 below)

REDD Base (MWh) 16.400 15,000 16,400 15,800 16,400 15,800 16,300 16,300 15,800 16,400 15,800 16,300 192,700 lna. (MWh) 0 0 0 0 0 0 0 0 0 0 0 0 0 Total REDD (MWh) 16,400 15,000 16,400 15,800 16,400 15,800 16,300 16,300 15,800 16,400 15,800 16,300 192,700

TOTALMWh 98,200 90,400 98.200 95.000 98,200 95,000 97,900 97,900 95,000 98,200 95,000 98,100 1,157,100

Coal MID Base (Tons) 24,126 21,933 24,126 23,359 24,126 23,359 24,017 24.017 23,359 24,126 23,359 24,126 284,033 Ina. (Tons) 0 0 0 0 0 0 0 0 0 0 0 0 0 Total MID (T0116) 24,126 21,933 24,126 23.359 24,126 23,359 24,017 24,017 23,359 24,126 23,359 24,126 284,033

SNCL Base (Tons) 20.727 19,411 20,727 20,069 20,727 20,069 20,727 20,727 20,069 20,727 20,069 20,727 244,776 Iner. (Tons) 0 0 0 0 0 0 0 0 0 0 0 0 0 Total SNCL (Tons) 20,727 19,411 20,727 20,069 20,727 20,069 20,727 20,727 20,069 20,727 20,069 20,727 244,776

REDD Base (Tons) 8,993 8,225 8,993 8,664 8,993 8,664 8,938 8,938 8,664 8,993 8,664 8,938 105,667 Iner. (Tons) 0 0 0 0 0 0 0 0 0 0 0 0 0 Total REDD (Tons) 8,993 8,225 8,993 8,664 8,993 8,664 8,938 8,938 8,664 8,993 8,664 8,938 105,667

TOTAL Tons 53,846 49,569 53,846 52,092 53,846 52,092 53,682 53,682 52,092 53,846 52.092 53,791 634,476

Doll an MIO Base($) 1,206,178 1,096,537 1,206,176 1,167,830 1,206,176 1,167,830 1,200,727 1,200,727 1,167,830 1,206,176 1,167,830 1,206,176 14,200,191 Iner.($) 0 0 0 0 0 0 0 0 0 0 0 0 0 O&MAdder[i) 85,800 78,000 85,800 83,070 85,800 83,070 85,410 85,410 83,070 85,800 83,070 85,800 1,010,100 Total MID($) 1,291,976 1,174,537 1,291 ,976 1,250,900 1,291,976 1,250,900 1,286,137 1,2a6,137 1,250,900 1,291,976 1,250,900 1,291,976 15,210,291

SNCL Base ($) 1,036,244 970,450 1,036,244 1,003,347 1,036,244 1,003,347 1,036,244 1,036,244 1,003,347 1,036,244 1,003,347 1,036,244 12,237,546 Iner.($) 0 0 0 0 0 o o 0 0 o o o 0 O&M Adder {Sl 73,710 89,030 73,710 71,370 73,710 71,370 73,710 73,710 71,370 73,710 71,370 73,710 870,480 Total SNCL ($) 1,109,954 1,039,480 1,109,954 1,074,717 1,109,954 1,074,717 1,109.954 1,109,954 1,074,717 1,109,954 1,074,717 1,109.954 13,108,026

REDO Base ($) 449,604 411,208 449,604 433,156 449,604 433,156 446,854 446,854 433,156 449.604 433,156 446,854 5,282,810 Iner.($) 0 0 0 0 0 0 0 0 0 0 0 0 0 O&M Ad<ler !Sl 31,980 29,250 31,980 30,810 31,980 30,810 31,785 31,785 30,810 31,980 30,810 31,785 375,765 Total REDD ($) 481,584 440,458 481.584 463.966 481,584 463.966 478,639 478,639 463,966 481,584 463,966 478,639 5,658,575

TOTALCoe1$ 2,692,024 2,478,195 2,692,024 2,604,333 2,692,024 2,604,333 2,683,825 2,683,825 2,604,333 2,692,024 2,604,333 2,689,274 31,720,547 TOTALO&MAdder$ 191,490 176,280 191,490 185,250 191,490 185,250 190,905 190,905 185,250 191,490 185,250 191,295 2.256,345 TOTALS 2,883,514 2,654,475 2,883,514 2,789,583 2,883,514 2,789,583 2,874,730 2,874,730 2,789,583 2,883,514 2,789,583 2,880,569 33,976,892

LOJl!l~ &!~l~!l!g-t.l[gll:Qin! [li;il~ Ml!Yl MID s 0 0 0 0 0 0 o 0 o 0 o 0 0 SNCL $ 0 0 C' 0 0 0 0 0 0 0 0 0 0 REDD$ 0 0 o 0 0 0 0 0 0 0 0 0 0

Scheduling Fee 0 o 0 0 0 0 0 0 0 0 0 0 0 Transmission SeMee 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL $ 0 0 0 0 0 o o o 0 o 0 0 0

Page23

.!!ri Wl !!M !ea MAY ..!!.Iii. M &LG m ~ ~ ~ !QIAI, ~J:; Mi!lgQIO!-Mim~ mi Ml:Yl

Rale: $4.47/kW-Montll (5) MID $ 0 0 0 0 0 0 0 0 0 0 0 0 0 SNCL $ 0 0 0 0 0 0 0 0 0 0 0 0 0 REDD$ 0 0 0 0 0 0 0 0 0 0 0 0 0

SCE Contract 0 0 0 0 0 0 0 0 0 0 0 0 0 ISO Related Cha!:Jles (2) 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL$ 0 0 0 0 0 0 0 0 0 0 0 0 0

lll!t.LQ lll!111i!wlll9::M!:a!I !l:i!l Mlll!l MID $ 0 0 0 0 0 0 0 0 0 0 0 0 0 SNCL $ 0 0 0 0 0 0 0 0 0 0 0 0 0 REDO$ 0 0 0 0 0 0 0 0 0 0 0 0 0

Loss Pannenl 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTALS 0 0 0 0 0 0 0 0 0 0 0 0 0

Baollll!l!bll! Power (PeMl ll.lg l:!Q!D I 12.5% of conlrad. MID MWh 4,768 4,749 6,746 6,982 6,123 6,334 4,914 5,098 4,341 4,839 5,138 4,967 65,000 52.5% of contract. SNCL MWh 20,027 19,946 28,332 29,324 25,717 28,601 20,640 21 ,413 18,233 20,325 21 ,580 20,883 273,000 35.0% af contract. REDD MWh 13,351 13,297 18,888 19,549 17,144 17,734 13,760 14,275 12,155 13,550 14,387 13,909 182,001

TOTAL MWh !3) 38,147 37,992 53,965 55,855 48,984 50,669 39,315 40,786 34,729 38,715 41,105 39,739 520,001

Dollars (Ene<gy + F&S) MID $ 301 ,981 300,754 427,200 442.162 387,nO 401,108 311,227 322,872 274,923 306,478 325,405 314,584 4 ,1 16,466 SNCL $ 1,249,295 1,244,219 1,767,327 1,829,223 1.604,202 1,659,384 1,287,547 1,335,721 1.137,357 1,267,897 1,346,139 1,301,432 17,029,743 REDD$ 832,863 829,479 1,178,218 1,219,482 1,069,468 1,106,256 858,364 890,481 758,238 845,265 897,467 867,622 11,353,204

Dollars (WIC Rate) MIO $ 29,925 29,925 29,925 29,925 29,925 29,925 29,925 29,925 29,925 29,925 29,925 29,925 359,100 SNCL $ 125,685 125,685 125,685 125,685 125,685 125,685 125,685 125,685 125,685 125,685 125,685 125,685 1,508,220 REDD i 83,790 83,790 83,790 83,790 83,790 83,790 83,790 83,790 83,790 83,790 83,790 83,790 1,005,480

TOTALS 2.623,540 2,613,853 3,612,145 3,730,268 3,300,839 3,406,149 2,696,538 2,768,474 2,409,919 2,659,039 2,808,411 2,723,038 35,372,213

Page24

.!At! Wl !MB ~ BI .wti .!Yb !Im m ~ filVl ~ :mw. Benewab!O f'owgr IPfMl Big Hom II

65.0% of contract. MID MWh 6,509 7,255 8,565 8,017 6,679 6,248 4,362 4,609 5,154 5,853 7,249 7,500 78,000 35.0% of contract. SNCL MWh 3,505 3,907 4.612 4,317 3,596 3,365 2.349 2.482 2,775 3,152 3,903 4,039 42,000

0.0% of contract. REDO "'=MW='="h':.,-=-:-,,..-,,,,-----=-~,--.....,..,~~.....,.,,.-,,:::=,--=-:,.,,-,.--:-::--=::----:=::-=----=-::~--=-=---=c=:--~:--::-.......,,.,..-,..,,,,.-..,.,..=:--......,.,~:="" TOTAL MWh (3)

0 0 0 0 0 0 0 0 0 0 0 0 0 10,014 11,162 13,177 12,334 10,275 9,613 6,710 7,090 7,929 9,005 11,152 11,539 120,000

:>oHars (Energy+ See Noto 4 MID $ SNCL $

693,545 373,447

m,052 416,259

912,606 854,222 491,403 459,966

711,621 665.m 464,718 383,180 358,493 250,233

491,036 549,143 623,864 772,360 799,162 8,310,900 264,404 295,692 335,819 415,886 430.318 4,475,100

Dollatll (WIC Rate) MID S SNCL $

48,100 48.100 25,900 25,900

48,100 48,100 48,100 48,100 25,900 25,900 25,900 25,900

48,100 48,100 48,100 48,100 48,100 48,100 577,200 25,900 25,900 25,900 25,900 25,900 25,900 310,800

:>ollars (Trensmission Service MID $ 107,933 107,933 107,933 107,933 107,933 107,933 107,933 107,933 107.933 107,933 107,933 107,933 1,295,190

NOTES:

SNCL $ 58,118 58.118 58,118 58,118 58,118 58,118 58,118 58,118 58,118 58,118 58,118 58,118 697,410

TOTAL$ 1,307.042 1,429,361 1.644.059 1,554,238 1.334,851 1,264,315 955,001 995.490 1,084,885 1, 199,533 1,428,296 1,469,530 15,666,600

(MSIHOTAL 6,814,096 6,697,689 8,139,718 8,074,088 7,519,204 7.~.047 6.526,269 6,658,694 6,284,387 6,742,086 7,026,290 7,073,137 85,015,705

(1) All coal numbers (base coal price, Incremental coal price, unit heat rale, coal grade, allocation. and 0 & Madder (501 accountll)) updated as per Martin Hopper via emau dated 10/21/2016 (spreadsheet "MSR PPA 2017 Purchase Power Budget Input Rev 10-18-16.xlsX"). Th9 0 & Madder is for fuel ralated O&M cost charged to FERC 501 accounts including Oil, Ash & Gypsum Disposal and Fuel Handling as per Martin Hopper Illa prellloualy noted email and spreadsheet.

(2) Renewable Power projacted outputfonicast and pricing projectionS for 2017 & 2018 as per Marlin Hopper email dated 10/21/2016 (spreadsheet: •Big Hom I Projections 2017.xlax• and •e1g Horn II Projections 2017.xlsx")

(3) Big Hom II Dollars include $/MWh charges for Energy per PPAAnnex H, Assumes escalation of 2% on $15/MWh affective 1-1-11; Redelivery per RA Section 2.6.1; Transmission Losses.RA Section 2.6.3 - asaumas BPATS Incremental Replacement Power at $60/MWh; and Operating Reserves por RA Section 2.6.4

Paga 25

SANJUAN

LDWP

SCE

WALC

0

0

0

0

0

0

0

0

0

0

0

0

2018 MSR PURCHASE POWER BUDGET

APR MAY JUN JUL AUG

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

TOTAL

0

0

0

0

RENEWABLE, Big Horn I 2,623,540 2,613,853 3,612,145 3,730,268 3,300,839 3,406,149 2,696,538 2,788,474 2,409,919 2,659,039 2,808,411 2,723,038 35,372,213

RENEWABLE, Big Horn 11 1,300,996 1,423,706 1,639,090 1,548,981 1,328,895 1,258,134 947,832 988,450 1,078,131 1,193,144 1,422,637 1,464,004 15,594,000

TOTAL MSR 3,924,536 4,037,559 5,251,235 5,279,249 4,629,734 4,664,283 3,644,370 3,776,924 3,488,050 3,852,184 4,231,049 4,187,042 50,966,213

Page 26

.!Alt ml MAR ~ ~ .wt! ..llLI. A!lQ ill ~ ~ DEC .I2IAb SANJUAN

Energy MID Base(MWh) 0 0 0 0 0 0 0 0 0 0 0 0 0 Iner. (MWh) 0 0 0 0 0 0 0 0 0 0 0 0 0 Total MID (MWh) 0 0 0 0 0 0 0 0 0 0 0 0 0

SNCL Base(MWh) 0 0 0 0 0 0 0 0 0 0 0 0 0 Iner. (MWh) 0 0 0 0 0 0 0 0 0 0 0 0 0 Total SNCL (MWh) 0 0 0 0 0 0 0 0 0 0 0 0 0

REDD Base (MWh) 0 0 0 0 0 0 0 0 0 0 0 0 0 Iner. (MWh) 0 0 0 0 0 0 0 0 0 0 0 0 0 Total REDD (MWh) 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTALMWh 0 0 0 0 0 0 0 0 0 0 0 0 0

Coal MID Base(Tons) 0 0 0 0 0 0 0 0 0 0 0 0 0 Iner. (Tons) 0 0 0 0 0 0 0 0 0 0 0 0 0 Total MID (Tons) 0 0 0 0 0 0 0 0 0 0 0 0 0

SNCL Base (Tons) 0 0 0 0 0 0 0 0 0 0 0 0 0 Iner. (Tons) 0 0 0 0 0 0 0 0 0 0 0 0 0 Total SNCL (Tons) 0 0 0 0 0 0 0 0 0 0 0 0 0

REDD Base (Tons) 0 0 0 0 0 0 0 0 0 0 0 0 0 Iner. (Tons) 0 0 0 0 0 0 0 0 0 0 0 0 0 Total REDD (Tons) 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL Tons 0 0 0 0 0 0 0 0 0 0 0 0 0

Donars MID Base($) 0 0 0 0 0 0 0 0 0 0 0 0 0 Iner.($) 0 0 0 0 0 0 0 0 0 0 0 0 0 O&M Adder($} 0 0 0 0 0 0 0 0 0 0 0 0 0 Total MID ($) 0 0 0 0 0 0 0 0 0 0 0 0 0

SNCL Base ($) 0 0 0 0 0 0 0 0 0 0 0 0 0 Iner.($) 0 0 0 0 0 0 0 0 0 0 0 0 0 O&M Adder{$} 0 0 0 0 0 0 0 0 0 0 0 0 0 Total SNCL ($) 0 0 0 0 0 0 0 0 0 0 0 0 0

REDD Base ($) 0 0 0 0 0 0 0 0 0 0 0 0 0 Iner. ($) 0 0 0 0 0 0 0 0 0 0 0 0 0 O&M Adder ($) 0 0 0 0 0 0 0 0 0 0 0 0 0 Total REDD($) 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL Coal$ 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL O&M Adder$ 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL$ 0 0 0 0 0 0 0 0 0 0 0 0 0

Page27

.!Mi ru MAR Affi MAY .um .i.w. AUG m ~ ~ ~ 1Q!Ab LDWP Adelanto-Midpoint (226 MW)

MID $ 0 0 0 0 0 0 0 0 0 0 0 0 0 SNCL $ 0 0 0 0 0 0 0 0 0 0 0 0 0 REDD $ 0 0 0 0 0 0 0 0 0 0 0 0 0

Scheduling Fee 0 0 0 0 0 0 0 0 0 0 0 0 0 Transmission Service 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTALS 0 0 0 0 0 0 0 0 0 0 0 0 0

SCE Midpoint-Midway (0 MW) See note (5) MID $ 0 0 0 0 0 0 0 0 0 0 0 0 0

SNCL S 0 0 0 0 0 0 0 0 0 0 0 0 0 REDD$ 0 0 0 0 0 0 0 0 0 0 0 0 0

SCE Contract 0 0 0 0 0 0 0 0 0 0 0 0 0 ISO Related Charges (2; 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL$ 0 0 0 0 0 0 0 0 0 0 0 0 0

WALC Westwing-Mead (150 MW) MID $ 0 0 0 0 0 0 0 0 0 0 0 0 0 SNCL $ 0 0 0 0 0 0 0 0 0 0 0 0 0 REDD$ 0 0 0 0 0 0 0 0 0 0 0 0 0

Loss Payment 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTALS 0 0 0 0 0 0 0 0 0 0 0 0 0

Renewable Power (PPM) Big Hom I 12.5% of contract. MID MWh 4,768 4,749 6,746 6,982 6,123 6,334 4,914 5,098 4,341 4,839 5,138 4,967 65,000

52.5% of contract SNCL MWh 20,027 19,946 28,332 29,324 25,717 26,601 20,640 21,413 18,233 20,325 21,580 20,863 273,000 35.0% of contract. REDD MWh 13.351 13,297 18,888 19,549 17,144 17,734 13,760 14,275 12,155 13,550 14,387 13,909 182,001

TOTAL MWh (3) 38,147 37,992 53,965 55,855 48,984 50,669 39,315 40,766 34,729 38,715 41 , 106 39,739 520,001

Dollars (Energy+ F&S) MID $ 301,981 300,754 427,200 442,162 387,770 401,108 311,227 322,872 274,923 306,478 325,405 314,584 4,116,466 SNCL $ 1,249,295 1,244.219 1,767,327 1,829,223 1,604,202 1,659,384 1,287,547 1,335,721 1,137,357 1,267,897 1,346,139 1,301,432 17,029,743 REDD$ 832,863 829,479 1,178,218 1,219,482 1,069,468 1,106,256 858,364 890,481 758,238 845,265 897,467 867,622 11,353,204

Dollars (WIC Rate) MID s 29,925 29,925 29,925 29,925 29,925 29,925 29,925 29,925 29,925 29,925 29,925 29,925 359,100 SNCL S 125,685 125,685 125,685 125,685 125,685 125,685 125,685 125,685 125,685 125,685 125,685 125,685 1,508,220 REDD S 83,790 83,790 83,790 83,790 83,790 83,790 83,790 83,790 83,790 83,790 83,790 83,790 1,005,480

TOTALS 2,623,540 2,613,853 3,612,145 3,730,268 3,300,839 3,406,149 2,696,538 2,788,474 2,409,919 2,659,039 2,808,411 2,723,038 35,372,213

Page28

JAN ~ MAR AfB MAY JYM ~ AUG ~ .rue.I ~ ~ TOTAL Renewable Power (PPM) Big Horn II 65.0o/o of contract. MID MWh 6,509 7,255 8,565 8.017 6,679 6,248 4,362 4,609 5,154 5,853 7,249 7,500 78,000 35.0% of contract. SNCL MWh 3,505 3,907 4,612 4,317 3,596 3,365 2,349 2,482 2,775 3,152 3,903 4,039 42,000 0.0% of contract REDD MWh 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL MWh (3) 10,014 11,162 13,177 12,334 10,275 9,613 6,710 7,090 7,929 9,005 11, 152 11,539 120,000

)oltars (Energy+ See Note 4 MID $ 695,756 775,519 915,518 856,948 713,892 667,897 466,201 492,603 550,895 625,654 774,824 801 ,712 8,337,420 SNCL $ 374,639 417,587 492,971 461 ,433 384,403 359,637 251,031 265,248 296,636 336,891 417,213 431,691 4,489,380

Doll~!li MIQ ~l MID $ 39,975 39,975 39,975 39,975 39,975 39,975 39,975 39,975 39,975 39,975 39,975 39,975 479,700 SNCL $ 21.525 21,525 21,525 21,525 21,525 21,525 21,525 21,525 21,525 21,525 21,525 21,525 258,300

)oltars (Transmission Service MID $ 109,915 109,915 109,915 109,915 109,915 109,915 109,915 109,915 109,915 109,915 109,915 109,915 1,318,980 SNCL $ 59,185 59,185 59,185 59,185 59,185 59,185 59,185 59,185 59,185 59,185 59,185 59,185 710,220

TOTAL$ 1,300,996 1,423,706 1,639,090 1,548,981 1,328,895 1,258,134 947,832 988,450 1,078,131 1,193, 144 1,422,637 1,464,004 15,594,000

IMSRTOTAL 3,924,536 4,037,559 5,251,235 5,279,249 4,629,734 4,664,283 3,644,370 3,776,924 3,488,050 3,852,184 4,231,049 4,187,042 50,966,213

(1) All coal numbers (base coal price, incremental coal price, unit heat rate, coal grade, allocation, and O & Madder (501 accounts)) updated as per Martin Hopper via email dated 10/20/2015 (spreadsheet "M·S-R PPA 2016 Purchase Power Budget Input Rev 10-20-15.xlsx"). The O & Madder is for fuel related O&M cost charged to FERC 501 accounts including 011, Ash & Gypsum

~ Disposal and Fuel Handling as per Martin Hopper via previously noted email and spreadsheet.

3 Renewable Power ected ou forecast and rlcl ections for 2015 & 2016 as r emall dated 10/20/2015 s adsheet "Bi Hom Pro ections 2016.xlsx"

(4) Big Hom II Dollars Include $/MWh charges for Energy per PPA Annex H, Assumes escalation of 2% on $15/MWh effective 1-1-11; Redelivery per RA Section 2.6.1; Transmission Losses, RA Section 2.6.3- assumes BPATS Incremental Replacement Power at $60/MWh; and Operating Reserves per RA Section 2.6.4

(5) SCE contract assumed ended by 1/1/2016 for all members.

Page29

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Page 1 of 6

DRAFT

MINUTES OF THE M-S-R PUBLIC POWER AGENCY

TECHNICAL COMMITTEE SEPTEMBER 7, 2016

The M-S-R Public Power Agency (M-S-R PPA) Technical Committee held a regular

meeting on September 7, 2016 at the offices of Porter Simon, in Truckee, California. A

list of the attendees is provided as Attachment 1. Mr. Hopper chaired the meeting.

Roll Call/Call to Order

The following M-S-R Members were represented: Modesto Irrigation District – absent,

City of Santa Clara – Joyce Kinnear, City of Redding – Steven Handy. The meeting was

called to order at 10:15 a.m. Mr. Burriss arrived at 10:20 a.m. and thereafter represented

Modesto Irrigation District.

Approval of Minutes

Upon a motion by Ms. Kinnear, seconded by Mr. Handy, the minutes of the meeting held

on August 4, 2016 were unanimously approved with minor corrections to the spelling of

names.

Manager’s Report

Mr. Hopper indicated there was nothing for inclusion in the General Manager’s Report

that would not be covered in the discussion associated with the Strategic Plan.

Projects and Activities

Mr. Hockenson provided updates on the forced outages and operational issues ongoing

with San Juan Unit 4 and the status of the 2016 SJGS Capital Budget.

Mr. Hockenson also indicated that the Big Horn wind machines are generating well.

Monthly curtailments are down but energy production appears to be entering the fall

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Page 2 of 6

decline. Mr. Hockenson added that the replacement transformer phase has been installed

at the Big Horn Substation but has not become operational.

Outside Services Budget versus Actual Reporting

Mr. Hopper indicated there were no exceptions of note to share. The report was noted

and filed.

WREGIS REC Status Report

Mr. Hopper indicated the expected 90-day lag between energy creation and REC delivery

is holding true. There is, however, an issue regarding 12 lost RECs to resolve. The report

was noted and filed.

San Juan Fuel Consumption Status Report

Mr. Hopper indicated schedules are exceeding the minimum requirements and a safety

margin is building. The report was noted and filed.

Recognition of a Non-Agenda item

Mr. Hopper indicated that the Agency received a legal notification regarding an existing

litigation after the agenda for this meeting had been distributed. Further, the implication

of this legal notification is that some action may need to be taken before this committee is

scheduled to next meet. Therefore, Mr. Hopper asked for the Committee to consider the

addition of an item for discussion in closed session. Mr. Hopper provided a brief

overview of U.S. District Court for New Mexico Case No. 1:14CV-00112-RJ and its

potential implications to the agency.

Upon a motion by Mr. Handy, seconded by Ms. Kinnear, a motion to amend the agenda

and add an item to Closed Session item 11.a., regarding U.S. District Court for New

Mexico Case No. 1.14CV-00112-RJ was unanimously approved.

Closed Session Conference with Legal Counsel

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Page 3 of 6

Pursuant to Government Code Section 54956.9(d)(1), the M-S-R PPA Technical

Committee retired to closed session at 10:38 a.m. to Conference with Legal Counsel - 6

Cases – Existing Litigation (10th US Circuit Court of Appeals 11-9557 et al, NM-PRC

Case No. 13-00390-UT, Supreme Court of New Mexico Case No. 35,697, BP-16-BPA,

and BP-18-BPA U.S District Court for New Mexico Case No. 1:14CV-00112-RJ).

In addition, the M-S-R PPA Technical Committee conducted a conference with Real

Property Negotiator pursuant to Government Code Section 54956.8, Property: Real

Property and/or Improvements, 300 Big Horn Road, Bickleton, Washington. The

negotiating parties are Big Horn Wind Project, LLC. Agency Negotiator: Martin R.

Hopper and/or Steven C. Gross. Under Negotiation: Purchase/Sale/Exchange/Lease of

Real Property (provisions, price and terms of payment).

Announcement from Closed Session

Upon returning to open session at 11:47 a.m., Mr. Hopper reported that there were no

reportable announcements.

M-S-R PPA 2017 Strategic Plan

Mr. Hopper indicated there are major modifications to the draft from the prior strategic

plan, particularly related to the Southwest Transmission assets to reflect the May 2016

divestiture and the final approval of the San Juan Restructuring Agreements. Also major

revisions have been made to the format of the plan such that each topic now follows a

consistent order: description, history, optimization, management of issues, and

recommendations.

A page-turn review of the document yielded a number of discussions and certain

modifications. The major topics addressed included: (1) the development of a new

Coordinator contract, (2) San Juan Restructuring Agreements and decommissioning

obligations, (3) updated Members Big Horn 2015 energy use, and (4) funding of Legacy

Liabilities. In addition, Mr. Hopper identified four specific strategic issues for

consideration: (1) using former 60-day cash requirement funds for trust fund deposits, (2)

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Page 4 of 6

an examination of Big Horn assets, (3) further participation in the APPA Western

Markets Working Group, and (4) following FERC fillings on transmission rates.

There were listed vacancies highlighted in the Organization Chart that needed to be filled.

The majority of discussion on Pacific Northwest non-operating activities was deferred in

anticipation of a special Technical Committee meeting likely to be scheduled on

September 20th. Mr. Hopper indicated his intention to provide an updated version of the

Strategic Plan prior to such a meeting.

Recess

Upon a motion by Ms. Kinnear, seconded by Mr. Burriss, a motion to recess was

unanimously approved. The Committee recessed from 12:25 p.m. to 12:32 p.m.

2017 Update to the M-S-R PPA 2017 Policies and Procedures Manual

Mr. Hopper indicated that much of the discussion of the Southwest Transmission Project

was removed from the active section of the Policies and Procedures Manual, then

simplified and incorporated into the Past Projects section of the Manual. Due to the May

divestiture and subsequent application of revenues to call and defease bonds, the list of

Outstanding Bonds was reflected accordingly. The Organization Chart will be modified

to be consistent with the Strategic Plan.

Upon a motion by Mr. Burriss, seconded by Ms. Kinnear, a recommendation to the M-S-

R PPA Commission to adopt the updated M-S-R 2017 Policies and Procedures manual

was unanimously approved.

Member Reports

Mr. Hopper solicited member reports from the Members and received none.

Public Comment

Mr. Hopper solicited comment from the Public and received none.

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Page 5 of 6

Next Meeting

There being no further business, the next regular meeting date will be at 10:00 a.m. on

October 6, 2016 to be held at the offices of Navigant Consulting, Inc. in Folsom, CA. A

Special Meeting will likely be held at the offices of Porter Simon, in Truckee, CA on

September 20, 2016. The meeting was adjourned at 3:08 p.m.

Respectfully submitted, Martin R. Hopper General Manager

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Page 6 of 6

Attachment 1 ATTENDANCE LIST

M-S-R PUBLIC POWER AGENCY TECHNICAL COMMITTEE

REGULAR MEETING

September 7, 2016 10:08 AM

NAME STATUS ORGANIZATION Toxie Burriss Member Modesto Steve Gross Guest General Counsel Steven Handy Member Redding Alan Hockenson Guest Consultant Martin Hopper Chair General Manager Joyce Kinnear Member Santa Clara

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Page 1 of 3

DRAFT

MINUTES OF THE M-S-R PUBLIC POWER AGENCY

SPECIAL TECHNICAL COMMITTEE SEPTEMBER 20, 2016

The M-S-R Public Power Agency (M-S-R PPA) Technical Committee held a special

meeting on September 20, 2016 at the offices of Porter Simon, in Truckee, California. A

list of the attendees is provided as Attachment 1. Mr. Hopper chaired the meeting.

Roll Call/Call to Order

The following M-S-R Members were represented: Modesto Irrigation District – Toxie

Burriss, City of Santa Clara – Joyce Kinnear, City of Redding – Steven Handy. The

meeting was called to order at 10:19 a.m.

Closed Session Conference with Legal Counsel

Pursuant to Government Code Section 54956.9(d)(1), the M-S-R PPA Technical

Committee retired to closed session at 10:20 a.m. to Conference with Legal Counsel - 2

Cases of Existing Litigation (BP-16-BPA, and BP-18-BPA).


Upon returning to open session at 1:41 p.m., Mr. Hopper reported that there were no


M-S-R PPA 2017 Strategic Plan

Upon a motion by Mr. Handy, seconded by Ms. Kinnear the draft M-S-R PPA 2017

Strategic Plan was recommended to the M-S-R PPA Commission for adoption by a

unanimous vote.

Member Reports

Mr. Hopper solicited member reports from the Members and received none.

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Page 2 of 3

Public Comment

Mr. Hopper took the opportunity to share with the Technical Committee two recent

events at the San Juan Generating Station. First, he described the lightning strike which

resulted in a six-hour complete blackout of the station. Second, he described the failure

of the Unit 3 Circulating Water Line, its failure mode, and his past experience with a

similar failure.

Mr. Hopper solicited additional comment from the Public and received none.

Return to Closed Session Conference with Legal Counsel

At the request of Mr. Scanlon, the Technical Committee returned to closed session at

2:06 p.m. under the same authorities listed above.


Upon returning to open session at 2:14 p.m., Mr. Hopper reported that there were no


Public Comment

Mr. Hopper solicited comment from the Public and received none.

Next Meeting

There being no further business, the next regular meeting date will be at 10:00 a.m. on

October 6, 2016 to be held at the offices of Navigant Consulting, Inc. in Folsom, CA,

however, the chair noted there is a high likelihood this meeting will be cancelled. The

following regular meeting will be at 9:00 a.m. on November 3, 2016 to be held at the

offices of Navigant Consulting, Inc. in Folsom, CA. This meeting will include the annual

budget workshop. The meeting was adjourned at 3:08 p.m.

Respectfully submitted, Martin R. Hopper General Manager

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Page 3 of 3

Attachment 1 ATTENDANCE LIST

M-S-R PUBLIC POWER AGENCY TECHNICAL COMMITTEE

SPECIAL MEETING

September 20, 2016 10:19 AM

NAME STATUS ORGANIZATION Dave Arthur Guest Consultant Martin Caballero Guest Modesto (telephonic) Toxie Burriss Member Modesto Steve Gross Guest General Counsel Steven Handy Member Redding Alan Hockenson Guest Consultant Martin Hopper Chair General Manager Joyce Kinnear Member Santa Clara David Olivares Guest Modesto (telephonic) Pete Scanlon Guest Special Counsel

10/28/16

M-S-R PUBLIC POWER AGENCY SAN JUAN PROJECT

STATUS REPORT NOVEMBER 2016

SAN JUAN UNIT 4 OPERATIONS September 2016 Unit Net Generation (MWh) 265,767 Net Capacity Factor (%) 72.8 San Juan Generating Station (San Juan) Unit 4 was forced from service in September between the 12th and 17th due to lightning strikes in the switchyard that resulted in a complete blackout of San Juan. STATION BLACK OUT The Public Service Company of New Mexico (PNM) has about 30 staff working on the aftermath of the San Juan blackout that occurred on September 12th. Besides the operational failure of the circuit breaker on the Unit 4 generator step-up transformer, certain other transmission-related components, primarily relays, failed to operate as expected. The investigation is somewhat sensitive as one open question is whether routine preventative maintenance was performed prudently. In addition, it is not clear where the actual lightning strike took place. Although the blackout occurred during a lightning storm, PNM has yet to find the actual strike location. Therefore, it is only presumed the events are related. UNIT 4 INDUCED DRAFT (ID) FANS PNM continues to be hopeful that the operational modifications instituted may be the long term solution to the vibration and expansion joint failures at the ID fan location on Unit 4. Temporary vibration limiting measures have been removed due to the improved performance when the inlet dampers were set at 85%. PNM intends to conduct additional tests in January 2017, and if successful, will likely declare the operational modifications to be the permanent solution. It may be an ongoing process to optimize the precise settings but the issue of excessive expansion joint damage should be solved. SAN JUAN STAFFING LEVELS PNM indicated that San Juan is experiencing employee attrition at a rate of about 2 employees per month. At this rate, the staffing level at San Juan should be near the 240 by the end of 2017. This is 50-70 employees above steady-state two-unit operation targeted for the beginning of 2018. In the interim, PNM has reorganized its engineering staff to be functionally capable across all units for their technical specialty rather than dedicated to one specific unit. Further, the four-shift operation will move to a five-shift operation. Although the financial implications are negligible, opportunities for additional staff training are improved. One other consideration is the recent adverse decision in the PNM rate case. If PNM does not secure an improved position on appeal, PNM may be looking at a companywide workforce reduction of between 200 and 300 employees. The guarantee at San Juan was that no jobs would be lost due to the closure of two units at San Juan. The same guarantee was not made in the event of an adverse rate case ruling.

10/28/16

SAN JUAN 2017 BUDGET The October 27, 2016 meeting of the San Juan Engineering and Operating (E&O) Committee was the least contentious annual budget meeting held in a decade. Capital expenditures were at a low level and primarily focused on preparing for the maintenance outages on Units 1 and 4 scheduled for 2018. All Capital Budget items (CBIs) were either approved unanimously by the voting participants, or withheld by PNM because additional investigation into alternatives could be beneficial and the projects were not yet time sensitive.

10/28/16

M-S-R PUBLIC POWER AGENCY PACIFIC NORTHWEST PROJECT

STATUS REPORT NOVEMBER 2016

BIG HORN I OPERATION MWH % of 5-Year Average September 2016 34,344 105.3 2016 Total 378,250 97.0 Project Life (since October 2006) 5,125,961 92.8 BIG HORN II OPERATION MWH % of 5-Year Average September 2016 9,867 134.2 2016 Total 89,719 103.7 Project Life (since November 2010) 697,727 92.8 During June/July/August 2016, there were only 13 MWh of curtailments. In September, the 18 MWh of curtailments were all during on-peak hours. The lifetime delivery of expected energy for both projects is currently at 92.8%. The annual expected energy from Big Horn I began at 602,000 MWh in 2007 and has declined on an average of about 10,000 MWh per year. The comparable number in 2016 was 508,000 MWh. Correspondingly, Big Horn II was 134,000 MWh in 2011 and 118,000 in 2016 or an average drop of about 3,000 MWh per year. REPLACEMENT CURRENT TRANSFORMER UPDATE One phase of the current transformers at the Big Horn site failed in January 2016. The replacement arrived in September, was installed, but failed to operate properly. Avangrid has scheduled a maintenance outage to occur on November 1, 2016. Additional diagnostics are scheduled to be performed during this outage and Avangrid is hopeful minor modifications are all that is necessary to have the transformer completely operational.


Date: October 28, 2016 From: Martin R. Hopper, General Manager To: M-S-R PPA Commission Subject: September 2016 Outside Services Budget versus Actual Report Major Legal Providers Reporting Are: Duncan, Weinberg, Genzer, and Pembroke: Through: August 31, 2016

Law Offices of Susie Berlin: Through: August 31, 2016

Porter Simon: Through: September 30, 2016

Major Consulting Providers Reporting Are:

Navigant Consulting: Through: September 30, 2016

KBT LLC: Through: September 30, 2016

Flynn Resource Consultants: Through: September 30, 2016

Detailed charts of monthly budget versus actual cost comparisons for each provider are

attached in their usual format.

Recommendation:

I recommend the Commission note and file this report.

M-S-R PPAAll Legal Summary

10/27/16 2016 Legal Expenses.xlsx

Month of: Sep-2016

By FunctionBudget Current Month

Actual Current Month

Positive Variance

Actual v. Budget % By Function Budget Year

to DateActual Year to

DatePositive Variance

Actual v. Budget %

Generation 8,333 132 8,201 2% Generation 75,000 66,169 8,831 88%Gen - Other 417 0 417 0% Gen - Other 3,750 1,148 2,602 31%Transmission 30,417 110 30,307 0% Transmission 273,750 245,490 28,260 90%Trans - Other 417 0 417 0% Trans - Other 3,750 4,667 (917) 124%Renewables 7,250 0 7,250 0% Renewables 65,250 44,493 20,757 68%Rens - Other 22,500 0 22,500 0% Rens - Other 202,500 99,761 102,739 49%Administrative 3,750 4,165 (415) 111% Administrative 33,750 30,003 3,747 89%Total 73,083 4,407 68,677 6% Total 657,750 491,731 166,019 75%

By ProviderBudget Current Month


Positive Variance

Actual v. Budget % By Provider Budget Year



Actual v. Budget %

Duncan 55,000 0 55,000 0% Duncan 495,000 358,201 136,799 72%Berlin 10,833 0 10,833 0% Berlin 97,500 82,128 15,372 84%Porter Simon 6,833 4,407 2,427 64% Porter Simon 61,500 50,255 11,245 82%Others 417 0 417 0% Others 3,750 1,148 2,602 31%Total 73,083 4,407 68,677 6% Total 657,750 491,731 166,019 75%

CURRENT MONTH YEAR TO DATE

-

250,000

500,000

750,000

1,000,000

Jan-2016 Feb-2016 Mar-2016 Apr-2016 May-2016 Jun-2016 Jul-2016 Aug-2016 Sep-2016 Oct-2016 Nov-2016 Dec-2016

AllLegal-Total

CUMMULATIVEBUDGET

CUMMULATIVEACTUAL

M-S-R PPADuncan Summary


Month of: Sep-2016

Budget Current Month


Positive Variance

Actual v. Budget %

Generation 833 0 833 0%Gen - Other 0 0 0 0%Transmission 29,167 0 29,167 0%Trans - Other 417 0 417 0%Renewables 2,083 0 2,083 0%Rens - Other 22,500 0 22,500 0%Administrative 0 0 0 0%Total 55,000 0 55,000 0%

Budget Year to Date

Actual Year to Date

Positive Variance

Actual v. Budget %

Generation 7,500 4,390 3,110 59%Gen - Other 0 0 0 0%Transmission 262,500 237,526 24,974 90%Trans - Other 3,750 4,667 (917) 124%Renewables 18,750 11,857 6,893 63%Rens - Other 202,500 99,761 102,739 49%Administrative 0 0 0 0%Total 495,000 358,201 136,799 72%

CURRENT MONTH

YEAR TO DATE

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Jan-2016

Feb-2016

Mar-2016

Apr-2016

May-2016

Jun-2016

Jul-2

016

Aug-2016

Sep-2016

Oct-201

6

Nov-2016

Dec-201

6

Duncan-Total

CUMMULATIVEBUDGET

CUMMULATIVEACTUAL

M-S-R PPABerlin Summary


Month of: Sep-2016



Positive Variance

Actual v. Budget %

Generation 4,167 0 4,167 0%Gen - Other 0 0 0 0%Transmission 0 0 0 0%Trans - Other 0 0 0 0%Renewables 5,000 0 5,000 0%Rens - Other 0 0 0 0%Administrative 1,667 0 1,667 0%Total 10,833 0 10,833 0%

Budget Year to Date

Actual Year to Date

Positive Variance

Actual v. Budget %

Generation 37,500 40,574 (3,074) 108%Gen - Other 0 0 0 0%Transmission 0 0 0 0%Trans - Other 0 0 0 0%Renewables 45,000 31,756 13,244 71%Rens - Other 0 0 0 0%Administrative 15,000 9,797 5,203 65%Total 97,500 82,128 15,372 84%

CURRENT MONTH

YEAR TO DATE

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Jan-2016

Feb-2016

Mar-2016

Apr-2016

May-2016

Jun-2016

Jul-2

016

Aug-2016

Sep-2016

Oct-201

6

Nov-2016

Dec-201

6

Berlin-Total

CUMMULATIVEBUDGET

CUMMULATIVEACTUAL

M-S-R PPAMisc Legal Summary


Month of: Sep-2016



Positive Variance

Actual v. Budget %

Generation 0 0 0 0%Gen - Other 417 0 417 0%Transmission 0 0 0 0%Trans - Other 0 0 0 0%Renewables 0 0 0 0%Rens - Other 0 0 0 0%Administrative 0 0 0 0%Total 417 0 417 0%

Budget Year to Date

Actual Year to Date

Positive Variance

Actual v. Budget %

Generation 0 0 0 0%Gen - Other 3,750 1,148 2,602 31%Transmission 0 0 0 0%Trans - Other 0 0 0 0%Renewables 0 0 0 0%Rens - Other 0 0 0 0%Administrative 0 0 0 0%Total 3,750 1,148 2,602 31%

CURRENT MONTH

YEAR TO DATE

-

1,000

2,000

3,000

4,000

5,000

6,000

Jan-2016

Feb-2016

Mar-2016

Apr-2016

May-2016

Jun-2016

Jul-2

016

Aug-2016

Sep-2016

Oct-201

6

Nov-2016

Dec-201

6

MiscLegal-Total

CUMMULATIVEBUDGET

CUMMULATIVEACTUAL

M-S-R PPAPorter Simon Summary


Month of: Sep-2016



Positive Variance

Actual v. Budget %

Generation 3,333 132 3,201 4%Gen - Other 0 0 0 0%Transmission 1,250 110 1,140 9%Trans - Other 0 0 0 0%Renewables 167 0 167 0%Rens - Other 0 0 0 0%Administrative 2,083 4,165 (2,081) 200%Total 6,833 4,407 2,427 64%

Budget Year to Date

Actual Year to Date

Positive Variance

Actual v. Budget %

Generation 30,000 21,205 8,795 71%Gen - Other 0 0 0 0%Transmission 11,250 7,964 3,286 71%Trans - Other 0 0 0 0%Renewables 1,500 880 620 59%Rens - Other 0 0 0 0%Administrative 18,750 20,205 (1,455) 108%Total 61,500 50,255 11,245 82%

CURRENT MONTH

YEAR TO DATE

-10,00020,00030,00040,00050,00060,00070,00080,00090,000

Jan-2016

Feb-2016

Mar-2016

Apr-2016

May-2016

Jun-2016

Jul-2

016

Aug-2016

Sep-2016

Oct-201

6

Nov-2016

Dec-201

6

PorterSimon-Total

CUMMULATIVEBUDGET

CUMMULATIVEACTUAL

10/27/16 2016 Input 2016 Legal Expenses.xlsx

Legal Costs - 2016 2016 Budget Reallocated Budget Jan-2016 Feb-2016 Mar-2016 Apr-2016 May-2016 Jun-2016 Jul-2016 Aug-2016 Sep-2016 Oct-2016 Nov-2016 Dec-2016 Total Average Year-End Notes

8.33% 16.67% 25.00% 33.33% 41.67% 50.00% 58.33% 66.67% 75.00% 83.33% 91.67% 100.00% Projection

DWG&P 27,814.50 29,815.30 Generation

SJGS Agreements 20,000 10,000 2,647 235 - - - - - 1,508.47 - - - - 4,390 366 4,390 Transmission

FERC Gen'l 250,000 290,000 29,099 17,030 24,163 23,575 23,707 27,965 20,111.20 17,257.50 - 23,500 23,500 23,500 253,407 21,117 253,407 SCE 100,000 60,000 3,161 2,807 6,420 8,056 4,385 9,529 7,703.30 12,557.80 - 4,250 4,250 4,250 67,369 5,614 67,369 SCE Experts - - - - - -

Trans - OtherOther Trans - TRR 10,000 5,000 - - 4,667 - - - - - - - - - 4,667 389 4,667 CASIO Rate Case/SWTP

RenewablesBPA/PNW Gen'l 25,000 25,000 2,577 4,599 2,335 - 196 2,151 - - - 2,000 2,000 2,000 17,857 1,488 17,857

Rens - OtherOMP/BPA Rate Case 300,000 270,000 8,952 10,372 5,670 7,829 15,321 15,889 18,084.51 17,645.05 - 25,000 25,000 25,000 174,761 14,563 174,761

705,000 660,000 46,435 35,042 43,255 39,459 43,608 55,534 45,899.01 48,968.82 - 54,750.00 54,750 54,750 522,451 43,538 522,451 7.04% 12.35% 18.90% 24.88% 31.48% 39.90% 46.85% 54.27% 54.27% 62.57% 70.86% 79.16% 79%

Law Offices of Susie BerlinGeneration

AB32/Cap & Trade/SB136825,000 50,000 4,649 2,496 4,421 4,333 536 5,163 6,140 12,836.44 - 5,000 5,000 5,000 55,574 4,631 55,574 Renewables

RES/RPS 30,000 60,000 4,724 5,781 7,680 1,776 6,951 268 1,072 3,505.10 - 5,000 5,000 5,000 46,756 3,896 46,756 A&G 5,000 20,000 1,614 1,642 1,575 704 1,608 1,508 670 478.75 - 1,500 1,500 1,500 14,297 1,191 14,297

60,000 130,000 10,986 9,918 13,676 6,812 9,095 6,938 7,882 16,820.29 - 11,500.00 11,500 11,500 116,628 9,719 116,628 8.45% 16.08% 26.60% 31.84% 38.84% 44.17% 50.24% 63.18% 63.18% 72.02% 80.87% 89.71% 90%

Others Italics = EstimatesGeneratiion - Other

Montgomery Andrews 30,000 5,000 317 70 70 - - - - 690.49 - - - - 1,148 96 1,148 30,000 5,000 317 70 70 - - - - 690.49 - - - - 1,148 96 1,148

1.06% 1.29% 1.53% 1.53% 1.53% 1.53% 1.53% 3.83% 3.83% 3.83% 3.83% 3.83% 23%- -

Sub Total 795,000 795,000 57,738 45,031 57,002 46,271 52,703 62,472 53,781 66,480 - 66,250 66,250 66,250 640,227 53,352 640,227 7.26% 12.93% 20.10% 25.92% 32.55% 40.40% 47.17% 55.53% 55.53% 63.86% 72.20% 80.53% 81%

Porter SimonM-S-R PPA

Generation 40,000 40,000 3,300 6,842 3,916 1,518 1,584 2,222.00 1,471.38 220.00 132.00 3,000 3,000 3,000 30,205 2,517 30,205 Transmission 20,000 15,000 88 220 2,530 2,376 2,156 308.00 - 176.00 110.00 1,000 1,000 1,000 10,964 914 10,964

Renewables 2,000 2,000 - - - - 792 44.00 - 44.00 - 220 220 220 1,540 128 1,540 A&G 20,000 25,000 3,606 132 2,088 3,190 1,179 1,956.00 1,242.00 2,647.16 4,164.80 2,000 2,000 2,000 26,205 2,184 26,205

82,000 82,000 6,994 7,194 8,534 7,084 5,711 4,530.00 2,713.38 3,087.16 4,406.80 6,220.00 6,220.00 6,220 68,915 5,743 68,915 8.53% 17.30% 27.71% 36.35% 43.31% 48.84% 52.15% 55.91% 61.29% 68.87% 76.46% 84.04% 84%

GRAND TOTAL 877,000 877,000 64,732 52,225 65,536 53,355 58,414 67,002 56,494 69,567 4,407 72,470 72,470 72,470 709,141 59,095 709,141 7.38% 13.34% 20.81% 26.89% 33.55% 41.19% 47.63% 55.57% 56.07% 64.33% 72.60% 80.86% 81%

Legal Original 2016

Budget

Legal Revised

2016 BudgetG 85,000 100,000 90,169 90,169 G - Other 30,000 5,000 1,148 1,148 T 370,000 365,000 331,740 331,740 T - Other 10,000 5,000 4,667 4,667 R 57,000 87,000 66,153 66,153 R - Other 300,000 270,000 174,761 174,761 A 25,000 45,000 40,503 40,503

877,000 877,000 709,141 709,141

50/35/15 520,000 520,000 468,227 468,227 Renew 357,000 357,000 240,914 240,914

M-S-R PPATotal Outside Consult Summary

10/27/16 2016 Consulting and Outside Service Expenses.xlsx

Month of: Sep-2016

By FunctionBudget Current Month


Positive Variance

Actual v. Budget % By Function Budget Year



Actual v. Budget %

Generation 12,667 12,210 457 96% Generation 114,000 122,726 (8,726) 108%Gen - Other 0 0 0 0% Gen - Other 0 0 0 0%Transmission 5,417 3,414 2,002 63% Transmission 48,750 47,470 1,280 97%Trans - Other 0 0 0 0% Trans - Other 5,000 3,765 1,235 75%Renewables 7,667 7,897 (230) 103% Renewables 69,000 61,090 7,910 89%Rens - Other 5,833 3,840 1,993 66% Rens - Other 52,500 40,800 11,700 78%Administrative 4,167 5,441 (1,275) 131% Administrative 37,500 40,672 (3,172) 108%Total 35,750 32,802 2,948 92% Total 326,750 316,523 10,227 97%

By ProviderBudget Current Month


Positive Variance

Actual v. Budget % By Provider Budget Year



Actual v. Budget %

Navigant 6,250 3,791 2,459 61% Navigant 56,250 32,009 24,241 57%KBT 26,667 27,011 (344) 101% KBT 240,000 255,569 (15,569) 106%Flynn RCI 0 0 0 0% Flynn RCI 5,000 3,765 1,235 75%Others 2,833 2,000 833 71% Others 25,500 25,180 320 99%Total 35,750 32,802 2,948 92% Total 326,750 316,523 10,227 97%

CURRENT MONTH YEAR TO DATE

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Jan-2016 Feb-2016 Mar-2016 Apr-2016 May-2016 Jun-2016 Jul-2016 Aug-2016 Sep-2016 Oct-2016 Nov-2016 Dec-2016

OutsideServicesConsultants-Total

CUMMULATIVEBUDGET

CUMMULATIVEACTUAL

M-S-R PPANavigant Summary


Month of: Sep-2016



Positive Variance

Actual v. Budget %

Generation 417 0 417 0%Gen - Other 0 0 0 0%Transmission 2,917 3,414 (498) 117%Trans - Other 0 0 0 0%Renewables 2,083 0 2,083 0%Rens - Other 0 0 0 0%Administrative 833 377 456 45%Total 6,250 3,791 2,459 61%

Budget Year to Date

Actual Year to Date

Positive Variance

Actual v. Budget %

Generation 3,750 3,267 483 87%Gen - Other 0 0 0 0%Transmission 26,250 21,060 5,190 80%Trans - Other 0 0 0 0%Renewables 18,750 0 18,750 0%Rens - Other 0 0 0 0%Administrative 7,500 7,682 (182) 102%Total 56,250 32,009 24,241 57%

YEAR TO DATE

CURRENT MONTH

-10,00020,00030,00040,00050,00060,00070,00080,000

Jan-2016

Feb-2016

Mar-2016

Apr-2016

May-2016

Jun-2016

Jul-2

016

Aug-2016

Sep-2016

Oct-201

6

Nov-2016

Dec-201

6

Navigant-Total

CUMMULATIVEBUDGET

CUMMULATIVEACTUAL

M-S-R PPAKBT Summary


Month of: Sep-2016



Positive Variance

Actual v. Budget %

Generation 10,833 11,210 (377) 103%Gen - Other 0 0 0 0%Transmission 2,500 0 2,500 0%Trans - Other 0 0 0 0%Renewables 4,167 6,897 (2,730) 166%Rens - Other 5,833 3,840 1,993 66%Administrative 3,333 5,064 (1,731) 152%Total 26,667 27,011 (344) 101%

Budget Year to Date

Actual Year to Date

Positive Variance

Actual v. Budget %

Generation 97,500 106,869 (9,369) 110%Gen - Other 0 0 0 0%Transmission 22,500 26,410 (3,910) 117%Trans - Other 0 0 0 0%Renewables 37,500 48,500 (11,000) 129%Rens - Other 52,500 40,800 11,700 78%Administrative 30,000 32,990 (2,990) 110%Total 240,000 255,569 (15,569) 106%

YEAR TO DATE

CURRENT MONTH

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Jan-2016

Feb-2016

Mar-2016

Apr-2016

May-2016

Jun-2016

Jul-2

016

Aug-2016

Sep-2016

Oct-201

6

Nov-2016

Dec-201

6

KBT-Total

CUMMULATIVEBUDGET

CUMMULATIVEACTUAL

M-S-R PPAFlynn RCI Summary


Month of: Sep-2016



Positive Variance

Actual v. Budget %

Generation 0 0 0 0%Gen - Other 0 0 0 0%Transmission 0 0 0 0%Trans - Other 0 0 0 0%Renewables 0 0 0 0%Rens - Other 0 0 0 0%Administrative 0 0 0 0%Total 0 0 0 0%

Budget Year to Date

Actual Year to Date

Positive Variance

Actual v. Budget %

Generation 0 0 0 0%Gen - Other 0 0 0 0%Transmission 0 0 0 0%Trans - Other 5,000 3,765 1,235 75%Renewables 0 0 0 0%Rens - Other 0 0 0 0%Administrative 0 0 0 0%Total 5,000 3,765 1,235 75%

CURRENT MONTH

YEAR TO DATE

-

1,000

2,000

3,000

4,000

5,000

6,000

Jan-2016

Feb-2016

Mar-2016

Apr-2016

May-2016

Jun-2016

Jul-2

016

Aug-2016

Sep-2016

Oct-201

6

Nov-2016

Dec-201

6

FlynnRCI-Total

CUMMULATIVEBUDGET

CUMMULATIVEACTUAL

M-S-R PPAMisc Outside Services Summary


Month of: Sep-2016



Positive Variance

Actual v. Budget %

Generation 1,417 1,000 417 71%Gen - Other 0 0 0 0%Transmission 0 0 0 0%Trans - Other 0 0 0 0%Renewables 1,417 1,000 417 71%Rens - Other 0 0 0 0%Administrative 0 0 0 0%Total 2,833 2,000 833 71%

Budget Year to Date

Actual Year to Date

Positive Variance

Actual v. Budget %

Generation 12,750 12,590 160 99%Gen - Other 0 0 0 0%Transmission 0 0 0 0%Trans - Other 0 0 0 0%Renewables 12,750 12,590 160 99%Rens - Other 0 0 0 0%Administrative 0 0 0 0%Total 25,500 25,180 320 99%

YEAR TO DATE

CURRENT MONTH

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Jan-2016

Feb-2016

Mar-2016

Apr-2016

May-2016

Jun-2016

Jul-2

016

Aug-2016

Sep-2016

Oct-201

6

Nov-2016

Dec-201

6

OutsideServices-Total

CUMMULATIVEBUDGET

CUMMULATIVEACTUAL

10/27/16 2016 Input 2016 Consulting and Outside Service Expenses.xlsx

Consultant Costs - 2016 2016 Budget Revised

Budget Task Orders Jan-2016 Feb-2016 Mar-2016 Apr-2016 May-2016 Jun-2016 Jul-2016 Aug-2016 Sep-2016 Oct-2016 Nov-2016 Dec-2016 Total Average Year-End Notes

8.33% 16.67% 25.00% 33.33% 41.67% 50.00% 58.33% 66.67% 75.00% 83.33% 91.67% 100.00% Projection

NavigantGeneration

General 5,000 5,000 - - - - - 3,267 - - - 3,267 363 4,356 Transmission

SCE TO-6 et al 35,000 35,000 - 1,236 2,704 - 2,472 6,908 2,703.75 1,622.25 3,414.45 21,060 2,340 28,080 Other Trans

- - - - - - Renewables BPA 25,000 25,000 - - - - - - - - - - BPA Cohen

NCI 2016-01 10,000 5,130.75 4,453.50 9,584 4,792 9,584 REC ProjectionsAdministrative 10,000 10,000 986 739 846 913 802 691 1,377.02 950.94 377.00 7,682 854 10,243

75,000 75,000 986 1,975 3,550 913 3,274 10,866 4,080.77 7,703.94 8,244.95 - - - 41,594 8,349 52,263 1.31% 3.95% 8.68% 9.90% 14.26% 28.75% 34.19% 44.46% 55.46% 55.46% 55.46% 55.46% 70%

KBTGeneration

General 95,000 130,000 15,705 9,120 11,020 14,783 8,930 12,350 15,011 8,740 11,210.00 10,000 10,000 10,000 136,869 11,406 136,869 Gen - Other

SJGS Disposition - - KBT 2016-xx - - - - - SJGS Restructuring Closing

- - - - Remaining -

TransmissionGeneral 30,000 30,000 2,470 6,270 6,080 5,510 6,080 - - - - - - - 26,410 2,201 26,410

Trans - OtherManagement 25,000 - - - - - -

RenewablesGeneral 50,000 50,000 3,230 6,987 6,440 2,280 6,389 7,376 5,000 3,902 6,896.56 5,000 5,000 5,000 63,500 5,292 63,500

Rens - OtherBP-16 Rate Case 50,000 65,000 - BP-18 Rate Case

KBT 2016-01 9,600 2,240 5,520 7,760 3,880 7,760 Jan - FebKBT 2016-02 12,800 2,720 1,520 4,240 2,120 4,240 Mar - AprKBT 2016-03 16,240 5,760 10,480 16,240 8,120 16,240 May - JunKBT 2016-04 12,800 3,440 5,280 8,720 4,360 8,720 Jul - AugKBT 2016-05 19,200 3,840.00 9,600 13,440 6,720 13,440 Sep - OctKBT 2016-xx - 6,400 6,400 12,800 6,400 12,800 Nov - Dec

Sum 70,640 63,200 63,200 BPA - OMP/IRI Cases 5,000 5,000 BPA - OMP/IRI Cases

KBT 2016-01 - - - - - - Jan - FebKBT 2016-02 - - - - - - Mar - AprKBT 2016-03 - - - - - - May - JunKBT 2016-04 - - - - - - - Jul - AugKBT 2016-05 - - - - - - - Sep - OctKBT 2016-xx - - - - - - Nov - Dec

Sum - -

Administrative 45,000 40,000 2,302 1,151 2,481 1,943 3,464 3,546 4,012 9,028 5,064.20 3,500 3,500 3,500 43,490 3,624 43,490 300,000 320,000 25,947 29,048 28,741 26,036 30,623 33,752 27,462 26,950 27,010.76 28,100 24,900 24,900 333,469 54,122 333,469

8.65% 18.33% 27.91% 36.59% 46.80% 58.05% 67.20% 76.19% 85.19% 94.56% 102.86% 111.16% 104%

Flynn RCIGeneration - - - -

Transmission - - - - Trans - Other

SWTP Negos 25,000 5,000 - 638 1,988 705 435 - - - - - - - 3,765 314 3,765 Renewables - - - - Rens - Other -

Administrative - - - 25,000 5,000 - 638 1,988 705 435 - - - - - - - 3,765 314 3,765

0.00% 2.55% 10.50% 13.32% 15.06% 15.06% 15.06% 15.06% 15.06% 15.06% 15.06% 15.06% 75%

Misc (MID etc) - GenerationGen - Other - - - -

TransmissionTrans - Other - - - - - Renewables - - - - - - - - - - - - -

Administrative - - - - - - - - - - - - - 0 - - - - - - - - - - - - - - - -

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% #DIV/0!333,469

SUBTOTAL 400,000 400,000 26,933 31,661 34,278 27,654 34,332 44,618 31,542 34,654 35,256 28,100 24,900 24,900 378,827 62,785 389,497 6.73% 14.65% 23.22% 30.13% 38.71% 49.87% 57.75% 66.42% 75.23% 82.26% 88.48% 94.71% 97%

Outside Services Italics = EstimatesGeneration

Ferguson Group 5,000 5,000 - 878 1,525 18 - - - - - - - - 2,420 202 2,420 Politico Group 12,000 12,000 1,000 1,187 1,065 1,730 1,000 1,189 1,000 1,000 1,000 10,170 1,130 13,560

TransmissionRenewables

Ferguson Group 5,000 5,000 - 878 1,525 18 - - - - - - - - 2,420 202 2,420 Politico Group 12,000 12,000 1,000 1,187 1,065 1,730 1,000 1,189 1,000 1,000 1,000 10,170 1,130 13,560

Rens - OtherAdministrative - - - -

34,000 34,000 2,000 4,128 5,180 3,495 2,000 2,378 2,000 2,000 2,000 - - - 25,180 2,663 31,960 5.88% 18.02% 33.26% 43.54% 49.42% 56.41% 62.29% 68.18% 74.06% 74.06% 74.06% 74.06% 94%

GRAND TOTAL 434,000 434,000 28,933 35,789 39,458 31,149 36,332 46,995 33,542 36,654 37,256 28,100 24,900 24,900 404,007 65,448 421,457 6.67% 14.91% 24.00% 31.18% 39.55% 50.38% 58.11% 66.56% 75.14% 81.61% 87.35% 93.09% 97%

Original 2016 Budget

Revised 2016 Budget

G 117,000 152,000 157,205 G - Other - - - T 65,000 65,000 54,490 T - Other 50,000 5,000 3,765 R 92,000 92,000 79,480 R - Other 55,000 70,000 63,200 A 55,000 50,000 53,733

434,000 434,000 411,873

50/35/15 287,000 272,000 269,193 Renew 147,000 162,000 142,680

of 1


Date: October 28, 2016 From: Martin R. Hopper, General Manager To: M-S-R PPA Technical Committee Subject: November 2016 WREGIS REC Transfers Status Report In 2013, the General Manager met with Iberdrola Renewables, Inc (now Avangrid REnewables,

Inc.) regarding the status of its transfers of Western Renewable Energy Generation Information

System (WREGIS) Renewable Energy Credits (RECs) for the Big Horn I and Big Horn II Wind

Energy Projects to M-S-R PPA. Ideally, the WREGIS timelines would allow transfers of RECs to

M-S-R PPA about 90-days after the close of a reporting month. At the time of that meeting, some

transfers were as many as 215-days outstanding. Iberdrola has subsequently reviewed its internal

procedures and has generally completed Big Horn I and Big Horn II transfers in a timely manner.

The attached chart illustrates current and historic status of REC transfers. At this point, covering

February through April generation, the M-S-R Coordinator indicates there are 12 unresolved RECs

out of 175,858 MWh metered generation. As requested by the Commission, this report will be

updated and presented every other month.

I recommend the Commission note and file the November 2016 WREGIS REC Transfers Status

Report.

WREGIS Transfer Durations.xlsx 10/28/16

0

90

180

270

360

450

540

630

Jan-08 May-09 Oct-10 Feb-12 Jul-13 Nov-14 Apr-16

Elap

sedTime(Days)

Month

BigHornI&IIRECTransfers

BHIDuraDon

BHIIDuraDon

OpenTransfers

10/28/16 WREGIS Transfer Durations.xlsx

REC Transfer Timeliness

Month Ending

Date Transferred to Members

BH I DurationDate

Transferred to Members

BH II Duration Today's Date Open

Transfers

Jan-08 29-Jun-09 515Feb-08 29-Jun-09 486Mar-08 29-Jun-09 455Apr-08 29-Jun-09 425May-08 29-Jun-09 394Jun-08 29-Jun-09 364Jul-08 29-Jun-09 333Aug-08 8-Jun-09 281Sep-08 8-Jun-09 251Oct-08 29-Jun-09 241Nov-08 8-Jun-09 190Dec-08 8-Jun-09 159Jan-09 8-Jun-09 128Feb-09 29-Jun-09 121Mar-09 7-Jul-09 98Apr-09 2-Sep-09 125May-09 2-Sep-09 94Jun-09 5-Nov-09 128Jul-09 30-Nov-09 122Aug-09 15-Dec-09 106Sep-09 8-Jan-10 100Oct-09 8-Feb-10 100Nov-09 10-Mar-10 100Dec-09 9-Apr-10 99Jan-10 10-May-10 99Feb-10 10-Jun-10 102Mar-10 10-Aug-10 132Apr-10 10-Aug-10 102May-10 10-Sep-10 102Jun-10 13-Oct-10 105Jul-10 9-Nov-10 101Aug-10 10-Dec-10 101Sep-10 2-May-11 214Oct-10 2-May-11 183Nov-10 9-May-11 160 9-May-11 160Dec-10 3-Jun-11 154 3-Jun-11 154Jan-11 11-Jul-11 161 11-Jul-11 161Feb-11 11-Jul-11 133 11-Jul-11 133Mar-11 11-Jul-11 102 11-Jul-11 102Apr-11 29-Aug-11 121 31-Aug-11 123May-11 30-Aug-11 91 31-Aug-11 92Jun-11 8-Nov-11 131 8-Nov-11 131Jul-11 8-Nov-11 100 8-Nov-11 100Aug-11 30-Nov-11 91 30-Nov-11 91Sep-11 20-Jan-12 112 20-Jan-12 112Oct-11 15-Feb-12 107 15-Feb-12 107Nov-11 24-May-12 176 24-May-12 176Dec-11 24-May-12 145 24-May-12 145Jan-12 15-Aug-12 197 15-Aug-12 197Feb-12 15-Aug-12 168 15-Aug-12 168Mar-12 15-Aug-12 137 15-Aug-12 137Apr-12 15-Aug-12 107 15-Aug-12 107May-12 30-Aug-12 91 30-Aug-12 91Jun-12 1-Oct-12 93 1-Oct-12 93Jul-12 31-Oct-12 92 31-Oct-12 92Aug-12 30-Nov-12 91 30-Nov-12 91Sep-12 3-May-13 215 3-May-13 215Oct-12 3-May-13 184 3-May-13 184Nov-12 3-May-13 154 3-May-13 154Dec-12 3-May-13 123 3-May-13 123Jan-13 3-Jun-13 123 3-May-13 92Feb-13 3-Jun-13 95 3-Jun-13 95Mar-13 2-Jul-13 93 2-Jul-13 93Apr-13 31-Jul-13 92 31-Jul-13 92May-13 4-Sep-13 96 5-Sep-13 97Jun-13 1-Oct-13 93 1-Oct-13 93Jul-13 21-Nov-13 113 21-Nov-13 113Aug-13 5-Dec-13 96 5-Dec-13 96Sep-13 2-Jan-14 94 2-Jan-14 94Oct-13 3-Feb-14 95 3-Feb-14 95Nov-13 3-Mar-14 93 3-Mar-14 93Dec-13 3-Apr-14 93 4-Apr-14 94Jan-14 8-May-14 97 8-May-14 97Feb-14 3-Jun-14 95 3-Jun-14 95Mar-14 2-Jul-14 93 2-Jul-14 93Apr-14 31-Jul-14 92 31-Jul-14 92May-14 4-Sep-14 96 4-Sep-14 96Jun-14 20-Oct-14 112 20-Oct-14 112Jul-14 7-Nov-14 99 7-Nov-14 99Aug-14 2-Dec-14 93 2-Dec-14 93Sep-14 12-Jan-15 104 12-Jan-15 104Oct-14 23-Feb-15 115 23-Feb-15 115Nov-14 13-Apr-15 134 13-Apr-15 134 Note: Rec'd from IRI 3-Mar-15Dec-14 13-Apr-15 103 13-Apr-15 103 Note: Rec'd from IRI 1-Apr-15Jan-15 6-May-15 95 6-May-15 95Feb-15 2-Jun-15 94 2-Jun-15 94Mar-15 9-Jul-15 100 9-Jul-15 100Apr-15 5-Aug-15 97 5-Aug-15 97May-15 1-Sep-15 93 1-Sep-15 93Jun-15 2-Oct-15 94 2-Oct-15 94Jul-15 5-Nov-15 97 5-Nov-15 97Aug-15 2-Dec-15 93 2-Dec-15 93Sep-15 31-Dec-15 92 31-Dec-15 92Oct-15 12-Feb-16 104 12-Feb-16 104Nov-15 3-Mar-16 94 3-Mar-16 94Dec-15 4-Apr-16 95 4-Apr-16 95Jan-16 3-May-16 93 2-May-16 92Feb-16 5-Jul-16 127 5-Jul-16 127Mar-16 5-Jul-16 96 5-Jul-16 96Apr-16 3-Aug-16 95 3-Aug-16 95May-16 1-Sep-16 93 1-Sep-16 93Jun-16 3-Oct-16 95 3-Oct-16 95Jul-16 28-Oct-16 90 Aug-16 28-Oct-16 59 Sep-16 28-Oct-16 29

Big Horn I Big Horn II


Date: October 28, 2016 From: Martin R. Hopper, General Manager To: M-S-R PPA Technical Committee Subject: November 2016 San Juan Fuel Consumption Status Report Pursuant to Section 5.6, “Exiting Participant Dispatch Requirements; Invoicing” of the San Juan

Project Restructuring Agreement, M-S-R PPA is required to dispatch its share of San Juan Unit No.

4 at an annual capacity factor of not less than 85% of the Unit’s Equivalent Availability Factor

(EAF) through the Exit Date.

With generation reported through September 30, 2016 M-S-R PPA has met this requirement and

accrued a positive compliance margin as shown below:

Through Sept 30, 2016 Required Achieved Margin

YTD Capacity Factor 66.05% 75.26% 9.21% Cumulative Generation (kWh) 634,200,000 722,600,000 88,400,000

The attached chart also projects the Agency’s status in meeting these requirements through the end

of the year.

I recommend the Commission note and file the November 2016 San Juan Fuel Consumption Status

Report.

10/27/16 Coal Consumption Review 10-18-16.xlsx

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Budget GWh 98.2 91.9 98.2 95.0 98.2 95.0 98.2 98.2 95.0 98.2 95.0 98.2 1159.3

Budget kWh 98,200,000 91,900,000 98,200,000 95,000,000 98,200,000 95,000,000 98,200,000 98,200,000 95,000,000 98,200,000 95,000,000 98,200,000 1,159,300,000

Cuml Budget kWh 98,200,000 190,100,000 288,300,000 383,300,000 481,500,000 576,500,000 674,700,000 772,900,000 867,900,000 966,100,000 1,061,100,000 1,159,300,000 1,159,300,000

Actual EAF 76.88% 92.03% 81.24% 44.88% 82.08% 92.94% 77.19% 74.28% 78.21% 85.00% 85.00% 85.00%

Hours 744 696 744 720 744 720 744 744 720 744 720 744 8,784

Required CF 65.35% 78.23% 69.05% 38.15% 69.77% 79.00% 65.61% 63.14% 66.48% 72.25% 72.25% 72.25% 67.61%

Cuml Req'd CF 65.35% 71.57% 70.71% 62.64% 64.09% 66.55% 66.41% 66.00% 66.05%

Required kWh 70,991,391 79,498,335 75,017,437 40,105,572 75,793,098 83,052,849 71,277,646 68,590,537 69,889,858 78,489,441 75,957,523 78,489,441

Cuml Req'd kWh 70,991,391 150,489,726 225,507,163 265,612,735 341,405,833 424,458,682 495,736,328 564,326,865 634,216,723 712,706,164 788,663,687 867,153,127 867,153,127

Achieved kWh 80,401,000 90,459,000 82,588,000 40,386,000 87,867,000 97,312,000 82,036,000 79,289,000 82,300,000 722,638,000

Achieved CF 74.01% 89.01% 76.02% 38.41% 80.88% 92.56% 75.51% 72.99% 78.28% 0.00% 0.00% 0.00% 56.34%

Cuml Ach'd CF 74.01% 81.26% 79.48% 69.30% 71.66% 75.10% 75.16% 74.89% 75.26%

Cuml Achieved kWh 80,401,000 170,860,000 253,448,000 293,834,000 381,701,000 479,013,000 561,049,000 640,338,000 722,638,000 722,638,000 722,638,000 722,638,000 722,638,000

Generation Margin 9,409,609 20,370,274 27,940,837 28,221,265 40,295,167 54,554,318 65,312,672 76,011,135 88,421,277 9,931,836 (66,025,687) (144,515,127) (144,515,127)

Ratio 113% 114% 110% 101% 116% 117% 115% 116% 118%

10/27/16 Coal Consumption Review 10-18-16.xlsx

-

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

kWhGen

era*

on

SanJuanUnit4DispatchRequirementsCummula*veThroughSeptember30,2016

CumlBudgetkWh

CumlReq'dkWh

CumlAchievedkWh

of 2


Date: October 28, 2016 From: Martin R. Hopper, General Manager To: M-S-R PPA Commission Subject: Resolution 2016-04 Regarding Use and Transfers of Reserves and Working

Capital At its September 28, 2016 meeting, the M-S-R PPA Commission adopted the M-S-R PPA

2017 Strategic Plan effective October 1, 2016. In that adopted plan, the Commission

recommended:

“M-S-R PPA should use funds from Operating Fund 60-day cash reserves

associated with San Juan Project costs to fund any additional Reclamation Trust

Deposits required to be made by December 31, 2017 and to hold any other surplus

Operating Fund 60-day cash reserves associated with San Juan Project costs in the

MCCRA to fund future San Juan Legacy Liability payments as may be directed by

the Commission in the future.”

The 60-day cash reserves associated with San Juan Project costs are determined and held

by the Agency in the Operating Fund pursuant to the requirements of Resolution 2013-07,

Working Capital Policy. As set forth in the San Juan Restructuring Agreements approved

pursuant to Resolution 2015-02, Approving San Juan Project Restructuring Agreements,

the Agency will exit the San Juan Project effective on or about December 31, 2017 and

will no longer be required to maintain working capital for San Juan Project Operations

including San Juan Project property taxes, fuel, and operating and maintenance costs.

Pursuant to the proposed 2017 M-S-R PPA Budget, these costs will total $xx,xxx,xxx and

the associated San Juan Project Operations working capital requirement is $x,xxx,xxx.

The proposed Resolution 2016-04 Regarding Use and Transfers of Reserves and Working

Capital provides that no later than December 31, 2017, the Treasurer shall upon the

of 2

recommendation of the General Manager and review of the Controller, transfer from the

Operating Fund into the Agency’s Mine Reclamation Trust Fund a deposit sufficient to

meet the Agency’s obligations under Section 4.0 of the Amended and Restated Mine

Reclamation and Trust Funds Agreement (MRTFA). The difference between M-S-R PPA

2017 Budget working capital requirement and any required deposit into M-S-R PPA’s

Mine Reclamation Trust Fund will be transferred to and held in the Member Cash Call

Reserve Account (MCCRA) established pursuant to Resolution 99-01 Establishing a

Member Cash Call Reserve Account Policy and a Member Cash Call Reserve Account and

Authorizing Initial Funding for the Member Cash Call Reserve Account, for the payment

of future legacy liability costs. Future legacy liability costs are defined as any payments or

deposits required pursuant to the MRTFA, the San Juan Decommissioning and Trust Funds

Agreement, or required for remediation of certain pre-Exit Date environmental conditions

pursuant to the Restructuring Agreements. The proposed Resolution 2016-04 further

provides that any other working capital associated with San Juan Project costs, such as for

Debt Service, once such costs are longer budgeted, shall also be transferred into the

MCCRA and held for payment of legacy liability costs as directed by the Commission.

I recommend the Commission adopt the proposed M-S-R Public Power Agency Resolution

2016-04 Regarding 2016 Use and Transfers of Reserves and Working Capital.

RESOLUTION NO. 2016-04 Adopted on November 16, 2016

RESOLUTION OF THE COMMISSION OF THE M-S-R PUBLIC POWER AGENCY REGARDNG USE AND TRANSFERS OF RESERVES AND

WORKING CAPITAL

___________________________

WHEREAS, at its September 28, 2016 meeting, the M-S-R PPA Commission

adopted the M-S-R PPA 2017 Strategic Plan effective October 1, 2016. In that adopted plan, the

Commission recommended:

“M-S-R PPA should use funds from Operating Fund 60-day cash reserves associated with

San Juan Project costs to fund any additional Reclamation Trust Deposits required to be

made by December 31, 2017 and to hold any other surplus Operating Fund 60-day cash

reserves associated with San Juan Project costs in the MCCRA to fund future San Juan

Legacy Liability payments as may be directed by the Commission in the future.”

WHEREAS, the Agency has established a working capital policy pursuant to

Resolution 2013-07, Working Capital Policy, whereby the Agency is to maintain a minimum of

60-days cash in the Operating Fund computed on the basis of the total operating revenue as

shown in the annual M-S-R Budget; and

WHEREAS, the Agency has established a Member Cash Call Reserve Account

(MCCRA) pursuant to Resolution 99-01 Establishing a Member Cash Call Reserve Account

Policy and a Member Cash Call Reserve Account and Authorizing Initial Funding for the

Member Cash Call Reserve Account; and

WHEREAS, the Agency has approved certain agreements referred to as the San

Juan Project Restructuring Agreements pursuant to Resolution 2015-02, Approving San Juan

Project Restructuring Agreements; and

WHEREAS, pursuant to the San Juan Project Restructuring Agreements the

Agency has retained certain liabilities pertaining to its obligations under the Amended and

Restated Mine Reclamation and Trust Funds Agreement (MRTFA), the San Juan

Decommissioning and Trust Funds Agreement, and for remediation of certain potential pre-Exit

Date environmental conditions, herein “Legacy Liabilities”; and

WHEREAS, as set forth in the San Juan Restructuring Agreements the Agency

will exit the San Juan Project effective on or about December 31, 2017 and will no longer be

required to maintain working capital for San Juan Project Operations including San Juan Project

property taxes, fuel, and operating and maintenance costs and pursuant to the proposed 2017

M-S-R PPA Budget, these costs total $xx,xxx,xxx and the associated San Juan Project

Operations working capital requirement is $x,xxx,xxx; and

WHEREAS, the Agency desires that no later than December 31, 2017, the

Treasurer shall upon the recommendation of the General Manager and review of the Controller,

transfer from the Operating Fund into the Agency’s Mine Reclamation Trust Fund, a deposit

sufficient to meet the Agency’s then current obligations under Section 4.0 of the MRTFA; and

WHEREAS, the Agency desires that the difference between the 2017 San Juan

Operations working capital requirement of $x,xxx,xxx and any required deposit into the

Agency’s Mine Reclamation Trust Fund be transferred to and held in the MCCRA for the

payment of future Legacy Liabilities costs; and

WHEREAS, the Agency desires any other working capital associated with San

Juan Project costs, such as for Debt Service, once such costs are longer budgeted, shall also be

transferred into the MCCRA and held for payment of Legacy Liabilities costs as may be directed

by the Commission.

NOW, THEREFORE, BE IT RESOLVED by the Commission of the Agency as

follows:

Section 1. The Commission hereby finds and determines that the matters set

forth in the preambles to this Resolution are true and correct.

Section 2. No later than December 31, 2017, the Treasurer shall upon the

recommendation of the General Manager and review of the Controller, transfer from the

Operating Fund into the Agency’s Mine Reclamation Trust Fund a deposit sufficient to meet the

Agency’s then current obligations under Section 4.0 of the MRTFA.

Section 3. The difference between the 2017 San Juan Operations working

capital requirement of $x,xxx,xxx and any required deposit into the Agency’s Mine Reclamation

Trust Fund set forth in Section2 shall be transferred to and held in the MCCRA for the payment

of future Legacy Liabilities costs.

Section 4. Any other working capital associated with San Juan Project costs,

such as for Debt Service, once such costs are longer budgeted, shall also be transferred into the

MCCRA and held for payment of Legacy Liabilities costs as may be directed by the

Commission.

Section 5. This Resolution shall take effect immediately upon its adoption.

PASSED AND ADOPTED by the Commission of the M-S-R Public Power

Agency this 16th day of November, 2016.

AYES: NOES: ABSENT:

APPROVED: By

President of M-S-R Public Power Agency

ATTEST: By Secretary of M-S-R Public Power Agency


Date: October 25, 2016 From: Martin R. Hopper, General Manager To: M-S-R PPA Commission Subject: Approval of 2017 Regular Meeting Dates The following meeting dates are based on the customary schedule for M-S-R PPA as adjusted for

known conflicts. Commission Meetings are proposed to be scheduled bimonthly in odd-

numbered months as was M-S-R PPA’s historic practice prior to 2013. Dates for even-numbered

months, if required by emergent business, would be called as Special Meetings on the same day

as TANC meetings.

Month Technical

Committee

Date/Time

Technical

Committee

Location

Commission

Date/Time

Commission

Location

January 2017 12 10:00 AM Folsom 25 12:00 Noon Folsom

March 2017 9 10:00 AM Folsom 22 12:00 Noon Folsom

May 2017 4 10:00 AM Member 17 12:00 Noon Folsom

July 2017 6 10:00 AM Folsom 19 12:00 Noon Folsom

September 2017 7 9:00 AM Truckee 20 12:00 Noon Folsom

November 2017 2 9:00 AM Folsom 15 12:00 Noon Folsom

Financial Management Committee: 1:00 PM, Wednesday, May 3, 2017, in Folsom, CA

I recommend the M-S-R PPA Commission adopt the above schedule for its 2017 Regular

meetings.

2017 California JPA Meeting Calendar

APPA Joint Action Workshop – Jan 11 – 13, 2017, Naples, FL NCPA Strategic Issues Conference – Jan 17 - 19, 2017, Sacramento, CA CMUA Capitol Day and Board Meeting – Jan 30 -31, 2017, Sacramento, CA APPA CEO Roundtable – Feb 12 – 14, 2017, Phoenix, AZ APPA/ACWA Legislative Rally & Conference – Feb 27 – Mar 1, 2017, Washington, DC

CMUA Annual Meeting – March 28 – 30, 2017, Carlsbad, CA NCPA/NWPPA Federal Policy Forum – Apr 23 - 26, 2017, Washington, DC APPA National Conference – June 16 – 21, 2017, Orlando, FL NCPA Annual Conference – Sept 27 - 29, 2017, Napa, CA

Revised: 10/25/16

BANC Commission (2:00 PM 4th Weds)

CMUA Legislative

C’tee (9:45AM)

CMUA Regulatory

C’tee (12:15PM)

M-S-R Technical C’tees

M-S-R PPA & EA

Commissions(Noon)

NCPA Facilities/ Pooling C’tees

NCPA LEC PPC C’tee

NCPA Public

Benefits C’tee

NCPA L&R C’tee

NCPA Utility

Directors

NCPA Commission Meeting

SCPPA Board

(3rd Thurs)

TANC Commission (10:00 AM)

Jan 18 Jan 12 Jan 12 Jan 12 Jan 25 TBD Jan 9 Jan xx Jan xx Jan 19 Sac’to Jan 19 Jan 25

Feb 22 Feb 9 So Cal

Feb 9 So Cal No meeting No meeting Feb 1 Feb 13 Feb xx Feb 22 Feb xx Feb 23 Feb 16 Feb 22

Mar 22 Folsom

Mar 9 Mar 9 Mar 9 Mar 22 Mar 1 Mar 13 Mar xx Mar xx/xx

TBD Mar 23 Mar 16 Mar 22

Apr 26 Apr 20 Apr 20 No meeting No meeting Apr 5 Apr 10 Apr xx Apr xx Apr 20 Apr 20 Apr 19

May 24 May 11 May 11 May 4 Member May 17 May 3 May 8 May xx May 24 May xx May 25 May 18 May 17

Jun 28 Jun 8 So Cal

Jun 8 So Cal No meeting No meeting Jun 7 Jun 12 Jun xx Jun xx

Jun 29 Ukiah No meeting Jun 28

Jul 26 Jul 13 Jul 13 July 6 July 19 Jul 5 Jul 10 Jul xx Jul xx Jul 27

Murphys Jul 20 July 19

Aug 23 Aug 10 Aug 31 Aug 10 No meeting No meeting Aug 2 Aug 14 Aug xx Aug 23 Aug xx Aug 24 Aug 17 Aug 23

Sep 20 Folsom

Sep 14 So Cal

Sep 7 Truckee Sep 20 Sep 6 Sep 11 Sep xx

Sep 27 Ann Conf Sep xx

Sep 29 Napa Sep 21 Sep 20

Oct 25 Oct 12 No meeting No meeting Oct 4 Oct 9 Oct xx Oct xx Oct 26 Oct 19 Oct 18

Nov 15 Nov 8 So Cal

Nov 8 So Cal Nov 2 Nov 15 Nov 1 Nov 13 Nov xx Nov 29 Nov xx Nov 30 Nov 16 Nov 15

Dec 27 No meeting No meeting Dec 6 Dec 11 Dec xx Dec xx No meeting Dec 21 Dec 20

of 1


Date: October 31, 2016 From: Martin R. Hopper, General Manager To: M-S-R PPA Technical Committee Subject: Discussion and Possible Action Regarding Letter Agreement with Avangrid

Renewables, Inc. Re CARB Reporting Templates and CITSS Transfers For the past two year, the Agency and its Members have had to enter into Letter Agreements with

Avangrid Renewables, Inc. Re CARB Reporting Templates and CITSS Transfers. In furtherance of

the recommendation in the Agency’s 2017 Strategic Plan to “. . . . continue to track and allocate

renewable energy production and associated WREGIS RECs from the Big Horn I and II Wind

Energy Projects for the benefit of the Members and take all necessary steps to ensure that such

generation and credits remain eligible to meet all applicable California renewable energy production

requirements.” the Agency is in the process of developing a standard form letter agreement for

recording and exchanging information related to the transfer of such credits and compliance with

RPS Adjustment policies.

I recommend the Committee review drafts of the same and recommend further action for

consideration by the M-S-R PPA Commission.