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Southcentral Power Project

International Transmission Substation

Project Update, June 2012

Chugach Electric

Board of Directors

July 25, 2012

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Project safety

• Safety First

– Two (2) Lost Time Accident to date

– Ten (10) Recordable Events to date

– Fatality of SNC Lavalin Pipefitter

• Remains under investigation by AKOSHA

• Report expected by August 2012

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2012 2013

DESIGN

Site/building work

Equipment Installations

Interconnection

Startup

2007 2008 2009 2010 2011

CTGs

STG

OTSGs

Site Prep

CONSTRUCTION

2013

Development & Preliminary Engineering

Construction Permits

Owner Procurement

OE EPC Contract

2007 2008 2009 2010 2011 2012

Guaranteed Substantial Completion

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Project Schedule

overview

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epc activities

• Engineering 100% complete

• Construction 86% complete – Hydrostatic testing of boilers along with

pressure testing of the fuel gas system

– CTG filter house cleaning prior to first

fire

– Completing last large cable installations

• Commissioning 31% complete – Vendors on site in support of

commissioning activities for CTGs,

STG, gas compressors and water

systems

– 31 systems accepted from

construction

Power plant

Site condition

July 11, 2012

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International transmission

SUBSTATION

SCHEDULE overview

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Bid

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Permits

Steel

2010 2011 2012

FAA - Tower Permit

MOA - Fence & Tower Permits

Engineering

2009

2012 2011 2009 2010

Steel

Electrical

Construction

Material Procurement

Breakers

Control Enclosure

Autotransformer

Site Work

Substantial Completion July 2012

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International transmission

Substation

SITE CONDITION

July 13, 2012

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GETAWAY STRUCTURE

installation

Installation of structure and wire for ML&P connection

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INTERNATIONAL TRANSMISSION

SUBSTATION

status

• All getaways have been installed and the

substation is energized

• Items left to complete include the contractor’s

punch list and final connections to the 138/115

kV power transformer

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Projects summary

Scope Not Changed

(includes road improvements)

Schedule Ahead of Schedule

12/2012 vs. 6/2013

Cost SPP: ML&P $103.5M Chugach $257M Total $360.5M

ITSS: ML&P $5.3M Chugach $16.5M Total $21.8M

Safety 2 LTA

10 Recordables