Document:

Exhibit 10.45

	
 

	
 

	
 

	

	

	
 

	
P.O. Box 5110

  Denver, Colorado 80217

  5500 South Quebec Street

  Greenwood Village, Colorado 80111

  Phone: (303) 740-4000

  Fax: (303) 740-4002

November 7, 2006

Mr. Michael R. Cunningham, Chief
Financial Officer

Chugach
Electric Association, Inc.

P.O. Box 196300

Anchorage, Alaska 99519-6300

RE: Chugach Electric
Association, Inc.

CIF: # 22020105

Dear Mr. Cunningham:

Enclosed for your files are
copies of the following fully executed loan documents:

	
 

	
 

	
 

	
 

	
1.

	
Amended and Restated Promissory
  Note and Committed Revolving Credit Supplement No. RI0214S01A

As
always, thank you for choosing CoBank!

Sincerely,

	
 

	

	
Jennita Foley

  Closing/ Booking Specialist, CoBank, ACB

  Enclosures

Loan No. RI0214S01B

AMENDED AND RESTATED PROMISSORY
NOTE AND

COMMITTED REVOLVING CREDIT SUPPLEMENT

          THIS
AMENDED AND RESTATED PROMISSORY NOTE AND SUPPLEMENT (this “Promissory Note and Supplement”) to
the Master Loan Agreement (the “MLA”) dated as of May 3, 2005, is entered into as of September 12, 2006
between CHUGACH ELECTRIC ASSOCIATION, INC.,
Anchorage, Alaska, an Alaska cooperative association (the “Company”)
and CoBANK, ACB,  a federally chartered instrumentality of the United
States (“CoBank”).

BACKGROUND

          The
Company and CoBank are parties to an Amended and Restated Promissory Note and Committed Revolving Credit Supplement No.
RI0214S01A dated as of September 2, 2005 in the original principal amount of $7,500,000.00 (as amended, the
“Existing Promissory Note and Supplement”). The Company and CoBank now desire
to amend and restate the Existing Promissory Note and Supplement. The execution of this Promissory Note and
Supplement shall not constitute a novation of the indebtedness outstanding under the Existing Promissory Note
and Supplement. For valuable consideration (the receipt and sufficiency
of which are hereby acknowledged), the Company and CoBank hereby agree that the
Existing Promissory Note and Supplement
shall be amended and restated in its entirety to read as follows:

          SECTION
1. The Revolving Credit Facility. On the terms and conditions set forth in the MLA and this Promissory Note and Supplement,
CoBank agrees to make loans to the Company during the period set forth below in
an aggregate principal amount not to exceed $7,500,000.00 at any one time outstanding (the “Commitment”). Within the limits
of the Commitment, the Company may borrow, repay and re-borrow.

          SECTION
2. Purpose. The purpose of
the Commitment is to finance the operating needs of the Company and to fund interim capital
expenditures.

          SECTION
3. Term. The term of the
Commitment shall be from the date hereof, up to and including October 31, 2007, or such later date as
CoBank may, in its sole discretion, authorize in writing.

          SECTION
4. Interest. The Company
agrees to pay interest on the unpaid balance of the loan(s) in accordance with one or more of the
following interest rate options, as selected by the Company:

                 (A)
Weekly Quoted Variable Rate. At a rate per annum equal at all
times to the rate of
interest established by CoBank on the first
Business Day of each week. The rate established by CoBank
may not exceed the CoBank Base Rate
(as hereinafter defined) on that day plus 3% and shall be effective
until the first Business Day of the
next week. Each change in the rate shall be applicable to all balances
subject to this option and
information about the then current rate shall be made available upon telephonic
request. For purposes hereof, the
CoBank Base Rate shall mean the rate of interest established by
CoBank from time to time as its
CoBank Base Rate, which Rate is intended by CoBank to be a reference
rate and not its lowest rate. The
CoBank Base Rate will change on the date established by CoBank as the
effective date of any change therein.

	
 

	
 

	
 

	
Amended
  and Restated Promissory Note and Committed

	
 

	
-2-

	
   Revolving
  Credit Supplement RI0214S01B

	
 

	
 

	
CHUGACH
  ELECTRIC ASSOCIATION, INC.

	
 

	
 

	
Anchorage,
  Alaska

	
 

	
 

          (B)
Quoted Rate Option. At a fixed rate per annum to be quoted by CoBank in its
sole discretion
in each instance. Under this option, rates may be fixed on such balances and
for such periods, as may be agreeable to CoBank in its sole discretion in each instance,
provided that: (1) the minimum fixed
period shall be 30 days; (2) amounts may be fixed in increments of $100,000.00
or multiples thereof; and (3) the maximum
number of fixes in place at any one time shall be 5.

The
Company shall select the applicable rate option at the time it requests a loan
hereunder and may, subject to the limitations set forth above, elect to convert
balances bearing interest at the variable rate option to one of the
fixed rate options. Upon the expiration of any fixed rate period, interest
shall automatically
accrue at the variable rate option unless the amount fixed is repaid or fixed
for an additional period in accordance with the terms hereof. Notwithstanding the
foregoing, rates may not be fixed for periods expiring after the maturity date
of the loans. All elections provided for herein shall be made telephonically or in writing
and must be received by 12:00 Noon Company’s local time. Interest shall be
calculated on the actual number of days each loan is outstanding on the basis
of a year consisting of 360 days and shall be payable monthly in arrears by the 20th
day of the following month or on such other day in such month as CoBank shall
require in a written notice to the Company.

          SECTION 5.
Commitment Fee. In consideration of the Commitment, the Company agrees to
pay to CoBank a commitment fee on the average daily unused portion of the
Commitment at the rate of 1/8 of
1% per annum (calculated on a 360 day basis), payable monthly in arrears by the
20th day following each month. Such fee
shall be payable for each month (or portion thereof) occurring during the
original or any extended term of the Commitment.

          SECTION
6. Promissory Note. The Company promises to repay the unpaid principal
balance of
the loans on the last day of the term of the Commitment, as the term may be
extended from time to time. In addition to the above, the Company promises to pay interest on
the unpaid principal balance of the loans at the times and in accordance with the
provisions set forth above.

          SECTION
7.  Letters of Credit. In addition to loans, the Company may utilize, if agreeable
to CoBank
in its sole discretion in each instance, the Commitment to open irrevocable
letters of credit for its account. Each letter of credit will be issued within
a reasonable period of time after CoBank’s receipt of a duly completed and
executed copy of CoBank’s then current form of Application and Reimbursement Agreement, or, if applicable, in accordance
with the terms of any CoTrade Agreement between the parties, and shall reduce the amount available under the Commitment by
the maximum amount capable of being
drawn thereunder. Any draw under any letter of credit issued hereunder shall be
deemed a loan under the Commitment
and shall be paid in accordance with this Promissory Note and Supplement. Each letter of credit must be in form and content
acceptable to CoBank and must expire no later than the maturity date of the Commitment.

          SECTION
8. Security. Except for CoBank’s statutory first lien on all equity
that the Company may now own or hereafter acquire or be allocated in CoBank,
the Company’s obligations hereunder shall be unsecured.

	
 

	
 

	
 

	
Amended
  and Restated Promissory Note and Committed

	
 

	
-3-
  

	
   Revolving Credit
  Supplement RI0214S01B

	
 

	
 

	
CHUGACH
  ELECTRIC ASSOCIATION, INC.

	
 

	
 

	
Anchorage,
  Alaska

	
 

	
 

          IN
WITNESS WHEREOF, the parties have caused this Promissory Note and
Supplement to the MLA to be executed by their duly authorized officers as of the date shown
above.

	
 

	
 

	
 

	
 

	
 

	
CoBANK, ACB

	
 

	
CHUGACH ELECTRIC ASSOCIATION, INC.

	
 

	
 

	
 

	
 

	
 

	
By:

	

	
 

	
By:

	

	
 

	

	
 

	
 

	

	
Title: 

	
Assistant
  Corporate Secretary

	
 

	
Title: 

	
CFOExhibit 10.54

EMPLOYMENT
AGREEMENT

          THIS
EMPLOYMENT AGREEMENT (“Agreement”) is entered into by and between William R.
Stewart (“Stewart”) and Chugach Electric Association, Inc., an Alaska electrical cooperative association
headquartered in Anchorage, Alaska (“Chugach”
or “Employer”), retroactive as of July 1, 2006.

          WITNESSETH:

          WHEREAS,
Chugach is engaged in the business of production, transmission and distribution of electricity in Alaska;

          WHEREAS,
Stewart has skills and experience in electric utility management generally and with the business and technology
associated with the production, transmission and distribution of
electricity; and

          WHEREAS,
Chugach desires to obtain Stewart’s services as the Chief Executive Officer of its business, and Stewart
desires to be employed in that position by Chugach;

          NOW,
THEREFORE, in consideration of the premises and the mutual covenants
herein set forth, the parties hereto agree as follows:

          1.
         Employment. Chugach hereby employs Stewart
as its Chief Executive Officer, and
Stewart hereby accepts such employment upon the terms and conditions hereinafter set forth.

          2.
           Duties.

                    
    a.
     Stewart shall serve as Chugach’s Chief Executive Officer and shall perform his
services as such within the
framework of Chugach’s Bylaws, policies,
procedures and goals as Chugach’s Board of Directors shall from time to time
determine, including but not limited to the following:

                      
          (i)
           Board Policy 106,
Delegations of Authority from the Board of Directors to the Chief Executive
Officer, Appendix A hereto;

                      
          (ii)
         Board Policy 107, Board of Directors - Chief Executive Officer
Relationship, Appendix B hereto; and

                      
          (iii)
       
Board Policy 118, Delegation of Certain of the Secretary’s and
Treasurer’s Duties to the Chief Executive Officer, Appendix C hereto.

In such capacity, Stewart (i)
shall exercise general supervisory responsibility and management authority over Chugach and all of its
controlled affiliates and (ii) shall

EMPLOYMENT
AGREEMENT - 1

perform
such other duties commensurate with his position as may be assigned to him from time to time
by the Chugach Board of Directors.

                    b.
          Stewart shall devote
substantially all his business time, attention and energies to the performance of his duties and
functions under this Agreement and shall not during the term of his employment hereunder
be engaged in any other substantial business activity for gain, profit or other
pecuniary advantage. Stewart shall faithfully, loyally and diligently perform his
assigned duties and functions and shall not engage in any activities whatsoever that
conflict with his obligations to Chugach during the term of his employment hereunder.
Notwithstanding the foregoing, nothing in the foregoing shall be construed so as to limit or
prohibit personal
investments by Stewart; provided that such investments shall not amount to a
controlling interest in any entity (other than trusts, limited partnerships or
other entities
adopted by Stewart for estate planning purposes). Stewart also agrees that he will not participate
in any political activity that will or may reflect adversely upon Chugach without
obtaining the prior consent of Chugach’s Board of Directors.

                    c.
          Chugach shall furnish
Stewart with an office and other facilities at Chugach’s headquarters location and services
that are suitable to his position and adequate for the performance of his
duties and functions hereunder

          3.
        Term of the Agreement. The term of this
Agreement shall be for a period of three (3) years commencing retroactively on
July 1, 2006. This Agreement may be extended by mutual written agreement of the
parties reached on or before July 1, 2008, for a minimum of a one (1) year term, and
thereafter for additional terms of one or more years on mutual written agreement
reached not less than twelve (12) months prior to expiration of the then remaining term.
Notwithstanding the foregoing, this Agreement will automatically be extended for
successive one-year terms if the Board of Directors does not take formal action
otherwise on or before July 1, 2008, and annually thereafter, or unless terminated as
provided in Section
10 of this Agreement.

          4.
        Compensation. Chugach shall pay to
Stewart, in consideration of and as compensation for the services agreed to be
rendered by Stewart hereunder, the following:

                      a.
          Salary. During the first year of
this Agreement (July 1, 2006 - June 30, 2007), Chugach shall pay to Stewart an annual
salary of Two Hundred Twenty Thousand Dollars ($220,000 US) (the “Base
Salary”), payable in regular installments on Chugach’s normal paydays, less
withholdings required by law and as authorized by Stewart. On each July 1 anniversary
date thereafter, the Base Salary shall be adjusted based upon the percentage
increase, if any, in the then most current semi-annual Anchorage CPI-U index published
by the U.S. Bureau of Labor Statistics. The Base Salary shall not be decreased due to any
reduction in the
CPI-U index.

EMPLOYMENT
AGREEMENT - 2

                    b.
          Discretionary Performance-Based Bonus Program. The Board of
Directors may, in its sole
discretion, establish annual or other performance-based objectives for Stewart and assign fixed dollar amount or percentage of
Base Salary bonuses for the successful achievement of those objectives.
The stated objective(s) will be set forth in
Appendix D hereto, to be updated from time to time as the Board sees fit. For each objective met, Stewart will be
awarded the bonus associated with that
objective, said payment(s) to be made within thirty (30) days of the Board’s determination, less withholdings required by law
or as authorized by Stewart. The parties
acknowledge that such bonus payments to Stewart, if any, are not considered compensation under any of retirement
plans offered by Chugach and therefore will not be considered in
determining Stewart’s retirement benefits.

                    c.
          Use of Company Vehicles. During the Employment Term, Stewart shall
be permitted to use Chugach vehicles
on company business on a de minimus basis. Stewart shall not be entitled to a company
vehicle for personal use.

          5.
        Chugach-Provided Benefits. During the term of this Agreement and
if available then, Stewart shall be entitled to
participate in all group health, pension, 401(k), deferred compensation plans and other benefit plans maintained
by Chugach and provided to its
salaried administrative personnel, on the same terms as apply to participation
therein by such personnel generally (except as otherwise provided herein). Further, during the term of this
Agreement, Stewart shall be entitled to participate in all fringe
benefit programs and shall receive all perquisites if and to the extent that Chugach’s Board of Directors establishes and
makes such benefits and perquisites
available to its salaried administrative personnel generally, including, but not limited to, Employer-paid
long-term disability insurance and life insurance coverage.

          6.
        Holidays, Sick Leave and Annual Leave. Stewart shall be entitled
to such holidays, sick leave and annual leave as are
provided to Chugach’s salaried administrative
personnel generally.

          7.        Expenses.
During the term of this Agreement, Chugach shall reimburse Stewart for all reasonable travel,
entertainment and other business expenses
incurred or paid by Stewart in performing his duties and functions hereunder, subject to Stewart’s accounting for and
reporting such expenses pursuant to
applicable Chugach policies.

          8.
        Non-Competition. During the term of this Agreement, during any
extension thereof, and for a period of six (6)
months after termination of this Agreement, Stewart shall not enter into
or participate in any business competitive to the
business carried on by Chugach in Southcentral Alaska or at such additional locations,
if any, outside Southcentral Alaska at which Chugach conducts business. As used herein, the term “business competitive to
the business carried on by

EMPLOYMENT AGREEMENT
- 3

Chugach”
means any business that involves the production, transmission or distribution of
electricity, and the words “Southcentral Alaska” mean a business conducted in whole or
in part within the boundaries of the Municipality of Anchorage, the Kenai
Peninsula Borough, or the Matanuska-Susitna Borough. The provisions of this paragraph 8 shall
survive the expiration and/or termination of this Agreement. If a court of competent
jurisdiction or arbitrator, as the case may be, should declare any or all of this
provision unenforceable because of any unreasonable restriction of duration and/or geographical area, then such
court or arbitrator shall have the express authority to reform this provision
to provide for reasonable restrictions and/or
to grant Chugach such other relief, at law or in equity, as is reasonably necessary to protect its interests.

          9.
          Confidential
Information. During the term of this Agreement and for so long thereafter as the
information remains confidential, Stewart will not use for his own advantage or
disclose to any unauthorized person any confidential information relating to the business
operations or properties of Chugach and any affiliate of Chugach. Upon the
expiration or termination of this Agreement, upon Chugach’s request, Stewart will
surrender and deliver to Chugach all documents and information of every
kind relating to or connected with Chugach and its affiliates. As used herein
“confidential information” means all information, whether written or oral, tangible or intangible,
of a private, secret, proprietary or confidential nature, of or concerning Chugach and
its business and operations, including without limitation, any trade-secrets or
know-how, computer software programs in both source code and object code,
information regarding any product or service, development, technology, technique,
process or methodology, any sales, promotional or marketing plans, programs,
techniques, practices or strategies, any expansion or acquisition plans, any operational
and management guidelines, any cost, pricing or other financial data or
projections, and any other information which is to be treated as confidential because of
any duty of confidentiality owed by Chugach to any third party or any other
information that Chugach shall, in the ordinary course of its business, possess or use
and not release externally without restriction on use or disclosure. The
foregoing confidential information provision shall not apply to information
which: (i) is or becomes publicly known through no wrongful act of Stewart, (ii) is
rightfully received from any third party without restriction and without breach by Stewart of
this Agreement; or (iii) is independently developed by Stewart after the term of his
employment hereunder or is independently developed by a competitor of Chugach
at any time. The provisions of this paragraph 9 shall survive the expiration and/or
termination of this Agreement.

          10.
         Termination.

                    
    a.
          Termination for Cause. Chugach may terminate Stewart’s
employment
for “cause” immediately upon written notice to Stewart, provided, however, that Stewart has been given ten (10)
days written notice of cause for termination
and has failed to, or is unable to, cure such cause within that time. Such

EMPLOYMENT
AGREEMENT - 4

notice shall specify in reasonable detail the acts or
omissions that constitute cause for termination. For purposes of this
Agreement, “cause” means a business-related reason that is not arbitrary,
capricious or illegal and which is based on facts (i) supported by substantial
evidence and (ii) reasonably believed by the Board of Directors to be true.
Examples of “cause” for termination of employment are provided in Chugach
Operating Policy 013 dated September 19, 2001, and are incorporated herein by
reference to the extent they are consistent with this Agreement. In the event
of the involuntary termination of his employment for cause, Stewart shall not
be entitled to receive any compensation hereunder other than his Salary and
employee benefits and leave as accrued through the effective date of such
termination. Stewart’s obligations under Paragraphs 8 and 9 shall continue
under the terms and conditions of this Agreement.

                    b.
      Termination Without Cause. Chugach
may terminate Stewart’s employment without cause at any time during the term of
this Agreement or any extension thereof, provided however, that Chugach shall
continue to pay Stewart his Base Salary and shall provide him all benefits that
he would have received had his employment not been terminated then, said
payments and benefits to continue without interruption through the end of the
then remaining term of this Agreement.

                    c.
      Voluntary Termination. Stewart may
voluntarily terminate his employment under this Agreement at any time upon
sixty (60) days’ prior written notice to Chugach’s Board of Directors,
whereupon Chugach’s employment of Stewart shall terminate at the end of the
sixty (60) day notice period. In the event of Stewart’s voluntary termination of
employment, he shall not be entitled to receive any compensation hereunder
other than his Salary and employee benefits as accrued through the effective
date of such termination. Stewart’s obligations under Paragraphs 8 and 9 shall
continue under the terms and conditions of this Agreement.

                    d.
      Disability. Chugach may terminate
Stewart’s employment after having established Stewart’s Disability, subject to
applicable state and/or federal law. For purposes of this Agreement, “Disability”
means a physical or mental disability which impairs Stewart’s ability to
substantially perform his duties under this Agreement and which results in
Stewart becoming eligible for long-term disability benefits under Chugach’s
long-term disability plan (or, if Chugach has no such plan in effect, which
impairs Stewart’s ability to substantially perform his duties under this
Agreement for a period of 180 consecutive days). Stewart shall be entitled to
the compensation and benefits provided for under this Agreement for (i) any
period during the term of this Agreement and prior to the establishment of
Stewart’s Disability during which Stewart is unable to work due to a physical
or mental disability, or (ii) any period of Disability which is prior to
Stewart’s termination of employment pursuant to this paragraph.

EMPLOYMENT AGREEMENT - 5

                    e.
      Death. This Agreement shall
automatically terminate the day after Stewart’s death if it has not already
terminated prior to that date.

                    f.
      Miscellaneous. In the event of any
termination or attempted termination hereof: (i) if multiple events,
occurrences or circumstances are asserted as bases for such termination or
attempted termination, the event, occurrence or circumstance that is earliest
in time, and any termination or attempted termination found to be proper
hereunder based thereon, shall take precedence over the others; (ii) no
termination of this Agreement shall relieve or release either party from
liability hereunder based on any breach of the terms hereof by such party
occurring prior to the termination date; and (iii) the terms of this Agreement
relevant to performance or satisfaction of any obligation hereunder expressly
remaining to be performed or satisfied in whole or in part at the termination
date shall continue in force until such full performance or satisfaction has
been accomplished and otherwise neither party hereto shall have any other or
further remaining obligations to the other party hereunder.

                    g.
      No Set-off; No Duty of Mitigation.
There shall be no right of setoff or counterclaim, in respect of any actual or
alleged claim, debt or obligation, against any payments or benefits required to
be made or provided to Stewart hereunder, including, without limitation,
pursuant to subparagraph 10(b). In the event of any termination of Stewart’s
employment under subparagraph 10(b), Stewart shall be under no obligation to
seek other employment and shall be entitled to all payments or benefits
required to be made or provided to Stewart hereunder, without any duty of
mitigation of damages and regardless of any other employment obtained by
Stewart.

          11.
    Injunctive Relief. It is agreed that the
services of Stewart are unique and that any breach or threatened breach by
Stewart of any provision of this Agreement cannot’ be remedied solely by
damages. Accordingly, in the event of a breach by Stewart of his obligations
under this Agreement, Chugach shall be entitled to seek and obtain interim
restraints and permanent injunctive relief, restraining Stewart and any
business, firm, partnership, individual, corporation or entity participating in
such breach or attempted breach. Nothing herein, however, shall be construed as
prohibiting either party from seeking injunctive relief to require resolution
of disputes or controversies arising out of or relating to this Agreement to be
resolved pursuant to paragraph 12 below.

          12.
    Arbitration. Any dispute or controversy arising
out of or relating to this Agreement or any claimed breach hereof shall be
resolved, at the request of either party, by a private arbitration proceeding.
The request for arbitration shall be made in writing no later than thirty (30)
days after the alleged act or omission on which it is based. The arbitration
proceeding shall be conducted pursuant to the Alaska Revised Uniform
Arbitration Act, AS 09.43.300 – 09.43.595 (the “Act”) and the most current
version of the employment arbitration rules published by the dispute

EMPLOYMENT AGREEMENT - 6

resolution organization
whose services are used by these parties (the “Arbitration Rules”), each of
which is incorporated herein by this reference to the extent that the Act and
the Arbitration Rules are consistent with this Agreement. The arbitrator shall
be an impartial arbitrator qualified to serve in accordance with the
Arbitration Rules. The arbitrator shall be selected by mutual agreement of the
parties. If the parties are unable to agree to a mutually acceptable arbitrator
within twenty-one (21) days of the request for arbitration, Chugach shall
select an impartial dispute resolution organization to provide the parties a
list of seven (7) arbitrators. After a coin toss to determine who makes the
first strike, the parties shall strike names from the list alternately until
the name of one arbitrator remains. That arbitrator shall be deemed mutually
acceptable to both parties unless the arbitrator is unavailable, in which case
the last arbitrator whose name was struck shall be deemed acceptable to the
parties, and so on. The arbitration hearing shall be held in Anchorage, Alaska,
or in such other place as may be mutually agreed upon by the parties, at a time
and location determined by the arbitrator. Within thirty (30) days of the close
of the arbitration hearing, the arbitrator shall hand down a written decision
and award. The decision shall explain the basis for the arbitrator’s award. The
arbitrator shall have authority to interpret and enforce this Agreement, but
shall not have authority to alter, amend or supersede any provision of this
Agreement. The decision and award shall be final and binding on the parties,
subject only to such appeal rights as are available under the Act. Either party
may seek entry of judgment upon such decision and award in any court having
jurisdiction over the parties. The expenses of the arbitration proceeding shall
be borne by Chugach. Each party shall pay for and bear the cost of its own
experts, witnesses and legal counsel in such arbitration proceeding.

          13.
    Indemnification.

                    a.
      Chugach shall indemnify Stewart (as a
“protected person”) to the fullest extent permitted by AS 10.25.145 (the terms
of which are incorporated herein by this reference) against all costs,
expenses, liabilities and losses (including, without limitation, attorneys’
fees, judgments, penalties and amounts paid in settlement) reasonably incurred
by Stewart in connection with any action, suit or proceeding, whether civil,
criminal, administrative or investigative in which Stewart is made, or is
threatened to be made, a party to or a witness in such action, suit or
proceeding by reason of the fact that he is or was an officer or agent of
Chugach or of any of Chugach’s controlled affiliates or is or was serving as an
officer, trustee, agent or fiduciary of any other entity at the request of
Chugach (a “Proceeding”).

                    b.
      Chugach shall advance to Stewart all
reasonable costs and expenses incurred by him in connection with a Proceeding
within twenty (20) days after receipt by Chugach of a written request for such
advance, accompanied by an itemized list of the actual or anticipated costs and
expenses and Stewart’s written undertaking to repay to Chugach on demand the
amount of such advance if it shall ultimately be determined that Stewart is not
entitled to be indemnified against such

EMPLOYMENT AGREEMENT - 7

costs and expenses. Stewart shall periodically account
to Chugach for all such costs and expenses incurred by Stewart in connection
with his defense of the Proceeding.

                    c.
    The indemnification provided to Stewart hereunder is in
addition to, and not in lieu of, any additional indemnification to which he may
be entitled pursuant to Chugach’s Certificate of Incorporation or Bylaws, any
insurance maintained by Chugach from time to time providing coverage to Stewart
and other officers and directors of Chugach, or any separate written agreement
with Stewart. The provisions of this paragraph 13 shall survive any termination
of this Agreement.

          14.
    Amendment and Modification. This Agreement
contains the entire agreement between the parties with respect to the subject
matter hereof, and supersedes any and all prior agreements, arrangements or understandings
between the parties hereto with respect to the subject matter hereof, whether
written or oral, including but not limited to the parties’ Memorandum of
Agreement in Principle and the agreements under which Stewart served as
Chugach’s interim Chief Executive Officer. Subject to applicable law and upon
the consent of Chugach’s Board of Directors, this Agreement may be amended,
modified and supplemented by written agreement of Chugach and Stewart with
respect to any of the terms contained herein.

          15.
    Waiver of Compliance. Any failure of either
party to comply with any obligation, covenant, agreement or condition on its
part contained herein may be expressly waived in writing by the other party,
but such waiver or failure to insist upon strict compliance shall not operate
as a waiver of, or estoppel with respect to, any subsequent or other failure.
Whenever this Agreement requires or permits consent by or on behalf of any
party, such consent shall be given in writing.

          16.
    Notices. All notices, requests, demands and
other communications required or permitted hereunder shall be in writing and
shall be deemed to have been duly given if delivered by hand, sent by
registered or certified U.S. Mail, postage prepaid, commercial overnight
courier service or transmitted by facsimile and shall be deemed served or
delivered to the addressee at the address for such notice specified below when
hand delivered, upon confirmation of sending when sent by fax, on the day after
being sent when sent by overnight delivery or five (5) days after having been
mailed, certified or registered, with postage prepaid:

	
 

	
 

	
 

	
If to Chugach:

	
 

	
If to Stewart:

	
 

	
Chugach Electric Association, Inc.

  P.O. Box 196300

  Anchorage, AK 99519-6300

	
 

	
William R. Stewart

  3200 Discovery Bay Drive

  Anchorage, AK 99515 

EMPLOYMENT AGREEMENT - 8

	
 

	
 

	
 

	
 

	
Facsimile: (907) 762-4688

	
Facsimile:

	
 

	
Attention: Chairman of Board of

	
 

	
 

	
Directors

	
 

or, in the case of either such
party, to such substitute address as such party may designate from time to time for purposes of
notices to be given to such party hereunder,
which substitute address shall be designated as such in a written notice given to the other party addressed as aforesaid.

          17.
    Assignment. This Agreement shall inure to the benefit of Stewart
and Chugach and be binding upon the
successors and general assigns of Employer. This Agreement shall not be assignable by either party except to the
extent set forth in paragraph 20.

          18.
    Enforceability.  In the
event it is determined that this Agreement is unenforceable in any respect, it is the mutual intent of the parties
that it be construed to apply and be enforceable to the maximum extent
permitted by applicable law.

          19.
    Applicable Law.  This
Agreement shall be construed and enforced in accordance
with the laws applicable to contracts executed, delivered and fully to be performed in the State of Alaska.

          20.     Beneficiaries:
Executive’s Representative. Stewart shall be entitled to select (and
to change, from time to time, except to the extent prohibited under any applicable law) a beneficiary or beneficiaries to
receive any payments, distributions or benefits to be made or
distributed hereunder upon or following Stewart’s death. Any such designation
shall be made by written notice to Chugach.
In the event of Stewart’s death or of
a judicial determination of Stewart’s incompetence, references in this Agreement to Stewart shall be deemed, as
appropriate, to refer to his designated
beneficiary, to his estate or to his executor or personal representative (“Stewart’s
Representative”) solely for the purpose of providing a clear mechanism for the exercise of Stewart’s rights hereunder in
the case of Stewart’s death or disability.

//
//
//

EMPLOYMENT AGREEMENT - 9

          IN
WITNESS WHEREOF, the parties have executed this Agreement to be effective on and as of the day and year first
above written.

	
 

	
 

	
 

	
 

	
CHUGACH ELECTRIC
  ASSOCIATION, INC.

	
 

	
 

	
 

	
 

	
By:

	

	
 

	
 

	

	
 

	
Name: JEFF LIPSCOMB 

	
 

	
 

	

	
 

	
Title:  CHAIRMAN OF THE BOARD 

	
 

	
 

	

	
 

	
 

	
WILLIAM
  R. STEWART

	
 

	
 

	

	
 

	

94714v1 23681-77

EMPLOYMENT
AGREEMENT - 10

APPENDIX A

CHUGACH ELECTRIC ASSOCIATION,
INC.

	
 

	
 

	
BOARD POLICY: 106

	
Date: June 18, 2003

DELEGATIONS OF
AUTHORITY 

FROM THE BOARD OF DIRECTORS TO 

THE CHIEF EXECUTIVE OFFICER 

	
 

	
 

	
 

	
 

	
 

	
I. 

	
OBJECTIVE 

	
 

	
 

	
 

	
To
  define  the delegations of authority from the Board of Directors to the Chief
  Executive Officer to enable adequate
  direction of the operations of the Association and to report to the Board on the results achieved.

	
 

	
 

	
 

	
 

	
 

	
II. 

	
CONTENT 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
A.

	
Planning

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1.    

	
Policies

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
To formulate with his/her staff, as appropriate, the
  Board policies to be recommended to a committee of the Board for their
  consideration and to participate with the Board Operations Committee and the
  Board in the development of Board
  policies. To formulate, in consultation with the Board of Directors and staff, the Operating
  Policies of the Association. Such
  policies shall be reviewed by the Chief Executive Officer as periodically necessary and a report made to
  the Board or a Board Committee.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2. 

	
Objectives

	

	
 

	
 

	
 

	
 

	
 

	
 

	
To
  develop, in consultation with the Board of Directors and staff, goals and objectives of the Association for presentation
  to and approval by the Board of Directors. To review annually these
  goals and objectives, as well as the results achieved.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
3.

	
Short-Range
  and Long-Range Plans

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
a.

	
To conduct studies, with staff and outside consultants if
  necessary, and recommend to the Board of Directors short-range
  and long-range plans, including plans in such areas as power
  supply, power requirements and load forecasts, need for generation
  and transmission facilities, procurement of fuel, financing,
  energy

	
 

	
 

	
 

	
 

	
 

	
BOARD POLICY: 106

	
PAGE: 2        

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
management
  and marketing, member and public relations, materials management,
  construction, etc., and to report to the Board on results achieved compared to
  such plans.

	
 

	
 

	
 

	
 

	
 

	
 

	
4.

	
Membership
  Meetings

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
To
  develop, with staff, plans for annual and other meetings of the Members and to make
  appropriate recommendations to the Board of Directors.

	
 

	
 

	
 

	
 

	
 

	
 

	
5.

	
Annual
  Work Plans and Budgets

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
To
  formulate, with staff, annual
  work plans and budgets for the Association and recommend them to the Board
  for their consideration and approval and to provide detailed
  reports monthly on revenue, expenses and other results compared to such
  plans.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
6.

	
Legislation

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
To analyze and determine
  with staff, state and federal legislative and regulatory matters to be proposed, supported, or opposed consistent
  with established Board policy.
  Reports will be submitted to the Board on a regular basis.

	
 

	
 

	
 

	
 

	
 

	
 

	
7.

	
Retail
  and Wholesale Rates and Service Rules and Regulations

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
To
  periodically study and analyze the Association’s retail and wholesale rates and service
  rules and regulations and make appropriate recommendations to the Board.

	
 

	
 

	
 

	
 

	
 

	
 

	
B.

	
Organization

	
 

	
 

	
 

	
 

	
 

	
 

	
1. 

	
Organizational
  Structure

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
a.

	
To
  periodically review activities of the Association and to determine, with staff, the organizational structure
  best suited to carry out the overall objectives of the Association, within
  the limitations of the budget and Board
  Policy and priorities.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
b.

	
To determine, with the
  appropriate staff members, the need for additional positions, the transfer, reassignment, or elimination of present positions, and
to effect such changes, provided
  they are within the limitations of the personnel costs of the approved
  budget. Reports should be made annually to
  the Board, or a committee of the Board,
  on the number of positions by organizational units as compared to previous years.

	
   

  	
   

  
	
  BOARD POLICY: 106

  	
  PAGE: 3        

  

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.

  	
  Selection of Personnel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  a.

  	
  To develop or approve
  standards and qualifications for use in recruitment, transfer and promotion
  of personnel. Such standards and qualifications should meet all federal and
  state legal requirements.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  b.

  	
  To hire, transfer,
  promote, and terminate personnel.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.

  	
  Training

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  a.

  	
  To ensure that the
  Association staff is trained in accordance with the requirements of their
  positions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  b.

  	
  To initiate and promote,
  through staff, appropriate management, professional and technical training
  programs for all personnel within the limitations of the approved budget and
  Board policy, including sending personnel to appropriate training programs
  outside the organization.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4.

  	
  Performance Appraisals

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  a.

  	
  To appraise, at least
  annually, the performance of the immediate staff and to counsel with them and
  assist them to develop and improve.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  b.

  	
  To ensure that an annual
  performance appraisal program is established and carried out for all
  personnel.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5.

  	
  Position Descriptions

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  To ensure that written
  position descriptions and job specifications are prepared and reviewed
  annually for all personnel. Such completed descriptions will not require
  Board approval.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6.

  	
  Fringe Benefits

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  To administer or approve
  activities and actions with respect to vacations, holidays, sick leave and
  other fringe benefit programs for the employed personnel within established
  policies, within the limitations of the budget, and as provided in collective
  bargaining agreements. A report shall be presented annually to the Board or a
  committee of the Board describing the various benefits and the employee and
  employer contribution, if any, and what percent fringes are of payroll.

  

	
   

  	
   

  
	
  BOARD
  POLICY: 106

  	
  PAGE: 4        

  

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7.

  	
  Overtime

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  To ensure that overtime is
  controlled and to report annually to the Board on overtime as a percent of
  payroll compared to previous years and the results of the efforts to control
  this expense.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8.

  	
  Consultants

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  To select and retain
  consultants, other than the firm performing the independent financial audit.
  The selection of any consultants working in areas which affect the functions
  of the Board requires the approval of the Board.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9.

  	
  Wage and Salary
  Administration

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  a.

  	
  To develop a systematic
  wage and salary plan for non-bargaining unit employees and present it to the
  appropriate committee of the Board of Directors for its review and for them
  to make an appropriate recommendation to the Board regarding its approval.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  b.

  	
  To determine all salary
  adjustments, except the Chief Executive Officer’s, within the Board-approved
  wage and salary plan and policy and within the limitations of the budget. A
  report is to be provided to the Board annually on the administration of the
  wage and salary plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  c.

  	
  To evaluate new positions
  and reevaluate existing positions. If their responsibilities and authorities
  substantially change, and if appropriate, place these positions in the
  Board-approved wage and salary plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  d.

  	
  To conduct labor surveys,
  as necessary, to determine wages and salaries paid for comparable jobs in the
  area in which the Association recruits personnel, and make recommendations to
  a committee of the Board of Directors on any revisions required in the wage
  and salary plan for non-bargaining unit employees, taking into account the
  financial condition of the Association.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10.

  	
  Labor Relations

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  a.

  	
  To negotiate bargaining
  unit contracts and make appropriate recommendations to the Board.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  b.

  	
  To administer the approved
  labor contracts and see that appropriate managers and supervisors understand
  the provisions of the contracts and their administration.

  

	
   

  	
   

  
	
  BOARD POLICY: 106

  	
  PAGE: 5        

  

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  11.

  	
  Employee Relations

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  To ensure that two-way communication between
  employees and management is established providing opportunities for feedback
  and employee involvement and participation as appropriate.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.

  	
  Operations

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Overall Administration

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  a.

  	
  To direct and manage the day-to-day operations and
  activities of the Association in accordance with the policies of the Board of
  Directors and in accordance with all contracts and lending institution
  policies and procedures, as well as applicable federal, state and local laws.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  b.

  	
  To delegate appropriate authority to immediate staff
  and authorize further delegation of authority to any level of management with
  full recognition that the Chief Executive Officer cannot be relieved of
  overall responsibility or any portion of accountability.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  c.

  	
  To designate an appropriate person to serve as
  Acting Chief Executive Officer in the absence of the Chief Executive
  Officer.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  d.

  	
  To ensure that staff advice and assistance is
  available to the Board of Directors and its committees.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  e.

  	
  To accept invitations to participate in or designate
  other staff members to participate in national, state and local meetings
  which further the best interest of the Association, within the limitations of
  Board policy and the approved budget. Participation by the Chief Executive
  Officer in such activities which requires considerable time over a sustained
  period requires approval of the Board.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  f.

  	
  To determine the transportation needs of the
  Association, with the understanding that the number of company-owned or
  leased cars individually assigned to employees will be minimized, and a pool
  of company-owned or leased cars will be utilized, and both activities will be
  accomplished in the most economical and practical extent possible. Such
  company-owned or leased cars shall be used only for trips that are primarily
  official business.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  g.

  	
  To serve as the authorized spokesperson for the
  Association on major issues impacting the Association and to keep the Board
  up to date and well informed on such issues.

  

	
   

  	
   

  
	
  BOARD
  POLICY: 106

  	
  PAGE: 6        

  

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.

  	
  Membership Services

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  To direct appropriate and
  efficient membership services in such areas as, but not necessarily confined
  to, public and member relations, load management, energy conservation,
  marketing communications, and research.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.

  	
  Legislation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  a.

  	
  To develop and carry out,
  consistent with Board policy 121, a legislative program furthering the
  Association’s objectives and policies. Such a program will include, but not
  be limited to, research, preparation of testimony, presentation of testimony
  before appropriate committees, consultation with members of Congress, the
  state legislature, and state and federal administrative and regulatory
  agencies.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  b.

  	
  To participate with allied
  groups to obtain their increased understanding and support of the
  Association’s legislative and regulatory objectives and programs.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4.

  	
  Financial 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  a.

  	
  To administer the approved
  budget, including approval of non-budgeted items or budget changes of not
  more than $1,000,000 or all non-budgeted items which, in his or her judgment,
  are vital to effect unanticipated emergency maintenance or repairs.
  Non-budgeted items or budget changes exceeding $500,000 must be reported to
  the Board of Directors.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  b.

  	
  To invest or reinvest
  funds, cash investments when due, and cash government bonds when, and if,
  necessary to protect the Association’s cash position, and to carry out an
  effective cash management program.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  c.

  	
  To authorize and approve
  the travel expenses of personnel, except the Chief Executive Officer’s, on
  company business within the limitations of the budget and within established
  policy. All such expenses shall be supported by itemized expense accounts
  with receipts attached, as appropriate. Expenses of the Chief Executive
  Officer will be approved by the Chairman of the Board or the Treasurer of the
  Board prior to payment.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  d.

  	
  To approve accounting systems, procedures,
  statistics and types of reports necessary for sound financial management of
  the Association, and to meet the requirements of lending and regulatory
  agencies and for necessary control, information required by the

  

	
   

  	
   

  
	
   BOARD POLICY: 106

  	
  PAGE: 7        

  

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Board of Directors.

  
	
   

  	
   

  	
   

  
	
   

  	
  e.

  	
  To purchase all equipment, vehicles, hardware,
  furniture, materials, and supplies within the limitations of the budget and
  Board policy. All purchases shall comply with applicable Association bylaws,
  policies and procedures. All purchases of major equipment or large quantities
  of materials for generation, transmission and substations shall be via
  competitive bids when feasible.

  
	
   

  	
   

  	
   

  
	
   

  	
  f.

  	
  To negotiate and approve contracts for construction
  in accordance with applicable Association procedures. Contracts in excess of
  $1,000,000 (net to the Association) shall be submitted to the Board for
  approval.

  
	
   

  	
   

  	
   

  
	
   

  	
  g.

  	
  To approve purchase orders and contracts, including
  cumulative changes, if $1,000,000 or less (net to the Association) for
  previously Board-approved projects and report on all active purchase orders
  and contracts over $250,000 (gross) each quarter. Purchase orders and
  contracts exceeding $1,000,000 (net to the Association) will be brought to the
  Board for approval prior to any commitments or expenditures being made.

  
	
   

  	
   

  	
   

  
	
   

  	
  h.

  	
  To approve change orders on purchase orders and
  contracts previously Board-approved, if the cumulative value of the changes
  is less than 15% of the original value. Change orders exceeding 15% of the
  original Board approved contract value or which cause the original value to
  exceed $1,000,000 (net to the Assocation) will be brought to the Board for
  approval prior to any commitments or expenditures being made.

  
	
   

  	
   

  	
   

  
	
   

  	
  i.

  	
  To determine insurance coverages required for
  effective risk management and to negotiate purchase of such coverages within
  the limitations of the budget and Board policy.

  
	
   

  	
   

  	
   

  
	
   

  	
  j.

  	
  To authorize individual memberships in civic clubs
  and organizations and company memberships in local organizations in which
  membership would be helpful and to authorize payment of dues by the
  Association within the limitations of the budget and established Board
  policy.

  
	
   

  	
   

  	
   

  
	
   

  	
  k.

  	
  To ensure that an internal auditing function is in
  place to carry out necessary studies with reports to the Board by the Chief
  Executive Officer on the results of such studies as appropriate.

  
	
   

  	
   

  	
   

  
	
   

  	
  l.

  	
  After authorization of a bond issuance by the Board,
  to ensure that the documentation necessary for the issuance of bonds is
  prepared,

  

	
   

  	
   

  
	
  BOARD
  POLICY: 106

  	
  PAGE: 8        

  

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  and to carry out
  negotiations with financing institutions for the sale of such bonds striving
  to achieve the lowest cost financing and to obtain approvals as are necessary
  for the sale thereof.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  m.

  	
   Subject to Subsections
  (f) and (g) above: To negotiate and execute all documents relating to the
  purchase, use, sale, lease, or other transactions affecting real property, to
  exercise the power of eminent domain to acquire for projects described in an
  approved budget property which the Association has been unable to obtain by
  negotiation; to execute and deliver all environmental studies and reports; to
  make application for all permits relating to the operations of the
  Association; to design, route and determine the site for all facilities
  within the limitations of Board policy and the budget.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  n.

  	
  To perform all acts
  necessary or incidental to the management of the operations of the
  Association, unless such acts are specifically reserved to the Board pursuant
  to law, the Association’s articles of incorporation and bylaws, or Board
  policies.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.

  	
  Control

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a.

  	
  Operations

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  To submit periodic and
  special reports to the Board of Directors on conformity of operations with
  approved policies and programs and recommend any revisions requiring Board
  approval and to direct any remedial action required.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b.

  	
  Finances

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  To submit periodic and
  special financial reports to the Board to keep them informed of the
  Association’s financial position and conformance to financial plans and
  forecasts, and to see that all persons having access to cash or responsible
  for purchasing of materials are properly bonded in accordance with all
  requirements of the lending agencies.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c.

  	
  Budgets

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  To report monthly to the
  Board on revenues and expenditures compared to budget. To recommend any
  revisions required, and to direct any necessary remedial action.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  d.

  	
  Annual Financial Audit

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  To participate with the
  Board in the review, with the auditor present,

  

	
   

  	
   

  
	
  BOARD
  POLICY: 106

  	
  PAGE: 9        

  

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  of the annual financial audit
  and management letter. To direct any remedial action required and to ensure
  that the management letter, along with the Audit Report, is sent to each
  Board member prior to the meeting at which they are to be discussed.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  e.

  	
  Materials Management

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  To determine the amount
  of, and establish proper control of, all physical inventories to minimize
  investment in inventories needed to meet operating and construction needs.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.

  	
  To ensure that a system is
  established to accurately account for all materials used.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  f.

  	
  Member Complaints

  
	
   

  
	
   

  	
   

  	
  To submit periodically to
  the Board of Directors an analysis of Member complaints and to take any
  corrective action required or to recommend appropriate revisions in Board
  policy.

  
	
   

  	
   

  	
   

  
	
   

  	
  g.

  	
  Reliability of Service

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To submit annually to the
  Board a report on service reliability and any remedial action taken.

  
	
   

  	
   

  	
   

  
	
   

  	
  h.

  	
  Availability of Power
  Supply

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To report periodically to
  the Board on load growth compared to availability of power and to recommend
  plans to meet anticipated growth to ensure an adequate and reliable supply
  for the Member at the lower possible costs consistent with sound business and
  management practices.

  
	
   

  	
   

  	
   

  
	
   

  	
  i.

  	
  Power Costs

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To continually study power
  costs compared to projections and to recommend to the Board, as far in
  advance as possible, any changes in power costs necessary to maintain
  financial strength and stability and to meet all requirements of lending and
  regulatory agencies.

  
	
   

  	
   

  	
   

  
	
   

  	
  j.

  	
  Loss Control

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To ensure that a loss
  control program is carried out to minimize and control losses due to
  accidents, environmental hazards and other risks.

  

	
   

  	
   

  
	
  BOARD POLICY: 106

  	
  PAGE: 10        

  

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  k.

  	
  Member Meetings

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  To report to the Board on the effectiveness of
  annual and other member meetings with recommendations on improvements which
  can be made.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III.

  	
  RESPONSIBILITY 

  
	
   

  	
   

  
	
   

  	
  A.

  	
  The Chief Executive Officer shall report to the
  Board periodically on how these delegations are being carried out. Further
  delegations to the Chief Executive Officer may be made as required.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Chief Executive Officer may delegate any of the
  foregoing authorities to the Acting Chief Executive Officer or other staff
  and the Acting Chief Executive Officer may act in any or all of these
  responsibility areas in the absence of and when designated to act for the
  Chief Executive Officer. The Chief Executive Officer is solely responsible
  for and accountable to the Board for the foregoing delegations of
  responsibility.

  
	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  The Board of Directors is responsible for approving
  any changes in the delegations to the Chief Executive Officer.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Chairman of the Board shall be responsible for
  ensuring that the performance of the Chief Executive Officer is appraised
  each year by the Operations Committee of the Board and that a written report
  is made to the full Board on or before the second Board meeting in March of
  each year, but no later than April 23, on the results of such appraisal,
  including a recommendation on a salary adjustment when appropriate, and that
  the results of such appraisal are discussed with the Chief Executive Officer.

  

	
  Date Approved:

	
  18 June’ 03

  	                         	
  Attested: 

  	
  

  
	 	
 

  	
   

  	
   

  	
  

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary of the Board

  

BP: 106

APPENDIX
B

CHUGACH ELECTRIC ASSOCIATION, INC.

	
   

  	
   

  
	
  BOARD
  POLICY: 118

  	
  Date:
  June 18, 2003

  

DELEGATION OF CERTAIN OF THE SECRETARY OF THE BOARD’S
AND 

TREASURER OF THE BOARD’S DUTIES TO THE CHIEF EXECUTIVE OFFICER

	
   

  	
   

  
	
  I.

  	
  OBJECTIVE:

  
	
   

  	
   

  
	
   

  	
  To specify certain duties
  of the Secretary of the Board and the Treasurer of the Board which are
  delegated to the Chief Executive Officer, and to supplement the Chief
  Executive Officer’s title accordingly.

  
	
   

  	
   

  
	
  II.

  	
  CONTENT:

  
	
   

  	
   

  
	
   

  	
  Article VI, Section 8 of
  the Association’s bylaws provides that the Board may delegate one or more of
  the duties of the Secretary of the Board and/or of the Treasurer of the Board
  to others. By this policy the Board specifies the duties so delegated and
  establishes certain standards and conditions governing these delegations:

  

	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  The duties hereinafter
  specified are delegated to the Chief Executive Officer. The Chief Executive
  Officer may further delegate these duties to his/her staff, but he/she shall
  not be relieved of full accountability for their proper execution.

  
	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Certain of the Secretary
  of the Board’s duties as set forth in Article VI, Section 6 of the
  Association’s bylaws are so delegated as described below:

  

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Recording the minutes of
  the board or member meetings. However, if the Secretary of the Board is
  present at such meetings, this shall be done under his/her supervision and
  direction, and the Secretary of the Board shall be responsible for their
  accuracy and shall sign them after they are duly approved.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.

  	
  Giving notice of board or
  member meetings. However, if the Secretary of the Board so desires, the
  Secretary of the Board shall approve the form and wording of any notice of a
  special board or member meeting, in which case such notice shall be sent over
  his/her name as Secretary of the Board. The Chief Executive Officer shall
  notify the Secretary of the Board that such a notice is to be given so as to
  afford him/her an opportunity to exercise the prerogative above stated.

  

	
   

  	
   

  
	
  BOARD
  POLICY: 118

  	
  PAGE 2        

  

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.

  	
  Serving as custodian of
  the Association’s records and its official seal. The Secretary of the Board
  shall, however, affix or personally supervise the affixing of the official
  seal to any document if so required by law or board resolution.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4.

  	
  Keeping a register of the
  names and addresses of all members.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5.

  	
  Signing the membership
  certificates, but only if the Board has authorized such signing by his/her
  facsimile signature.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6.

  	
  Having general charge of
  the Association’s books in which a record of the members is kept.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7.

  	
  Keeping on file copies of
  the Association’s Articles of Incorporation and Bylaws and being responsible
  for furnishing copies thereof to members upon their request.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8.

  	
  In general, performing all
  duties incident to the office of Secretary of the Board, and such other
  duties as from time to time may be assigned by the Board of Directors.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.

  	
  Certain of the Treasurer
  of the Board’s duties as set forth in Article VI, Section 7 of the
  Association’s bylaws are delegated to the Chief Executive Officer as
  described below:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Being in charge and having
  custody of, and being responsible for, all funds and securities of the
  Association. However, the Chief Executive Officer’s duties, responsibilities
  and authorities in this respect may be limited or conditioned as otherwise
  resolved by the Board, either from time to time or by separate policy
  governing the subject.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.

  	
  Receiving, receipting,
  depositing and investing monies received by the Association. However, the
  Chief Executive Officer’s duties, responsibilities and authorities with
  respect to deposit institutions and investments shall be within the
  limitations of Board policy.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.

  	
  In general, performing all
  the duties incident to the office of Treasurer of the Board and such other
  duties as from time to time may be assigned by the Board of Directors.

  

	
   

  	
   

  
	
  BOARD
  POLICY: 118

  	
  PAGE 3        

  

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D.

  	
  The Chief Executive
  Officer shall also have the titles of Assistant Secretary of the Board and
  Assistant Treasurer of the Board, but these titles need not be stated on the
  Association’s stationery or other identifying papers, ink stamps, documents,
  etc., except when appropriate in the execution of the duties herein
  delegated.

  
	
   

  	
   

  	
   

  
	
  III.

  	
  RESPONSIBILITIES:

  
	
   

  	
   

  	
   

  
	
   

  	
  It shall be the
  responsibility of the Board of Directors to administer this policy.

  

	
  Date Approved:

	
  18 June’ 03

  	                         	
  Attested: 

  	
  

  
	 	
 

  	
   

  	
   

  	
  

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary of the Board

  
	
   

  
	
   

  
	
  BP: 118

  	
   

  	
   

  	
   

  	
   

  

APPENDIX C

CHUGACH ELECTRIC ASSOCIATION,
INC.

	
 

	
 

	
BOARD POLICY: 107

	
DATE: June 18, 2003

BOARD OF DIRECTORS - CHIEF
EXECUTIVE OFFICER RELATIONSHIP

	
 

	
 

	
I.

	
OBJECTIVE

	
 

	
 

	
 

	
To establish the policy
  governing the basic relationship between the Board of Directors and the Chief
  Executive Officer, including the principles involving the delegation of
  authority.

	
 

	
 

	
II.

	
CONTENT 

	
 

	
 

	
 

	
The
  Board of Directors of the Association recognizes, establishes, and maintains
  the following
  guidelines in their relationship with the Chief Executive Officer:

	
 

	
 

	
 

	
 

	
A.

	
It is
  recognized that good management is the most important factor in the success
  of the
  Association. This includes a strong and effective Board, Chief Executive Officer and staff, as
  well as dedicated and capable employees. In exercising its responsibilities, the
  Board of Directors reserve their authority to establish policies, approve plans and
  programs and delegate authority to their Chief Executive Officer, except those that are
  by law, the Articles of Incorporation and Bylaws, conferred upon or reserved to
  the members.

	
 

	
 

	
 

	
 

	
B.

	
The
  Board of Directors recognize their responsibility and their need to establish
  policies,
  approve plans and programs, appraise results achieved and delegate authority
  to the Chief Executive Officer to execute and carry out their plans, programs and policies.
  The Chief Executive Officer shall, among other things, be responsible for the
  hiring of capable personnel within the limitations of Board policy and budget
  constraints, determining compensation within the approved wage and salary plan and
  policy, training, supervising and terminating if necessary.

	
 

	
 

	
 

	
 

	
C.

	
All
  policies of the Board of Directors shall be adopted at regular or special
  Board meetings acting collectively as a Board. The Chief Executive Officer is
  delegated the responsibility of carrying out such policies and reporting back
  to the Board on the results achieved.

	
 

	
 

	
 

	
 

	
D.

	
The
  Board recognizes that should any Director undertake in private conversation with others to make
  commitments for the Board of Directors, unless directed officially by the
  Board, that Director becomes involved in a serious breach of policy that might disrupt
  the entire organization. The Board member shall be subject to reprimand from
  his or her fellow Board members should he/she attempt to make commitments
  unofficially for the Board.

	
 

	
 

	
 

	
 

	
E.

	
The
  Board of Directors shall refrain as individuals from discussing management
  and personnel
  problems with personnel of the Association. The Board of Directors, in consultation with the
  Chief Executive Officer, may confer with key personnel at regular or special
  meetings of the Board.

	
 

	
 

	
 

	
 

	
F.

	
The
  “flow” of authority for the management of the Association shall be through
  the Board
  of Directors to the Chief Executive Officer. The Board of Directors shall require full, complete and timely
  information from the Chief Executive Officer concerning pertinent matters in connection with the management of the
  Association as set forth in Board Policies.

	
 

	
 

	
 

	
 

	
G.

	
The
  Board of Directors recognize that efficient management of the Association can
  exist
  only through mutual understanding and complete cooperation between the Board of Directors and
  the Chief Executive Officer. The Chief Executive Officer is expected to produce
  results and give an account to the Board of Directors for his or her stewardship. His
  or her performance cannot be of the best unless he or she is given latitude to
  exercise independent judgment in executing policies of the Board of Directors. The
  Board of Directors acknowledges that obligation and gives the Chief Executive Officer
  that latitude of judgment and discretion, and expects faithful performance
  in carrying out all of the policies of the Board of Directors.

	
 

	
 

	
 

	
 

	
H.

	
The
  Board of Directors recognize their responsibility for the employment of a
  Chief Executive Officer, and further, the additional responsibility for a
  systematic annual appraisal, no later than April 23 each year, of the Chief Executive
  Officer’s performance
  in order that growth, development and effective improvements are encouraged.

	
 

	
 

	
 

	
 

	
I.

	
The
  Chief Executive Officer may only be terminated in accordance with the
  contract between the Chief Executive Officer and the Board.

	
 

	
 

	
 

	
III.

	
RESPONSIBILITIES

	
 

	
 

	
 

	
 

	
A.

	
The
  Chairman of the Board shall be responsible for bringing the attention of the Board members to
  non-adherence to this policy.

	
 

	
 

	
 

	
 

	
B.

	
The
  Board of Directors shall be responsible for seeing that the performance of
  the Chief
  Executive Officer is appraised each year by the Operations Committee, which will make a written
  report to the full Board on or before the second Board meeting in March of each year,
  but no later than April 23, including a recommendation on a salary adjustment
  when appropriate. Once reviewed with the Board, a written report should be made
  to the Chief Executive Officer and discussed with him or her.

	
  Date Approved:

	
  18 June’ 03

  	                         	
  Attested: 

  	
  

  
	 	
 

  	
   

  	
   

  	
  

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary of the Board

  
	
   

  
	
   

  
	
  BP: 107

  	
   

  	
   

  	
   

  	
   

  

APPENDIX
D

PERFORMANCE-BASED BONUS PROGRAM

	
   

  	
   

  
	
  TO:

  	
  William R. Stewart, Chief Executive
  Officer

  
	
   

  	
   

  
	
  FROM:

  	
  Board of Directors

  
	
   

  	
   

  
	
  TIMEFRAME:

  	
  July 1, 2006 through June 30, 2007

  

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Stated Objective 

  	
   

  	
  Criteria for Measuring Success in 

  Meeting Stated Objective

  	
   

  	
  Percentage of Base Salary 

  Linked to Success

  
	
   

  	
  

  	
   

  	
  

  	
   

  	
  

  
	
  1.

  	
  Rate Review

  	
   

  	
   

  	
   

  	
  5%

  
	
   

  
	
   

  	
  Restructure rates between G&T and Distribution
  Functions to correct debt structure and properly allocate interest expense
  while updating depreciation schedules and cost of service.

  	
  A.

  

B.

  
C.

  
D.

  	
    Preliminary rate case outline to Chugach Board by
  7/20/06 for direction to prepare a rate case.

  Preliminary rate case results to MEA Joint Committee process, as well as HEA,
  SES and RAPA by 8/1/06.

  Board approval of rate case filing at 9/20/06 Board meeting.

  File rate case with RCA by 9/30/06.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Single-Member G&T Update

  	
   

  	
   

  	
   

  	
  5%

  
	
   

  
	
   

  	
    The Chugach Board of Directors passed a resolution
  on September 15th 2004, that directed the CEO to undertake all necessary
  steps to craft a plan to create a single-owner G&T organization that
  would hold all Chugach assets, contractual arrangements, and associated debt.
  A three-part plan was developed and presented to the BOD on March 8, 2005. To
  date, Chugach staff has completed all steps in part A that functionally
  unbundles the organizations finances without a change in corporate structure.
  The next step is to determine whether organizational restructuring and
  financial unbundling meets the needs of the Association or if we need to
  evaluate the feasibility and necessity of proceeding with a separate
  corporate structure.

  	 A.

  	
   Evaluate feasibility and necessity of proceeding
  with separate corporate structure by June 30, 2006. Provide recommendation to
  BOD on whether Chugach should proceed with Steps B and C of the overall plan
  at the July strategic planning session.

  	
   

  	
   

  

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Stated Objective 

  	
   

  	
  Criteria for Measuring Success in 

  Meeting Stated Objective

  	
   

  	
  Percentage of Base Salary 

  Linked to Success

  
	
   

  	
  

  	
   

  	
  

  	
   

  	
  

  
	
   

  	
   

  	    

  	   

  	
   

  	
   

  
	
  3.

  	
  Make Decision on Future Generation

  	    

  	    

  	
   

  	
  5%

  
	
   

  
	
   

  	
  Aging generation and high fuel prices have
  significantly increased G&T rates to customers. Of the near-term options,
  coal has a significant hurdle due to high initial capital costs and gas
  turbines have the uncertain future of dwindling gas supply and volatility of
  market-based (Henry Hub) prices. Other options such as wind, geo-thermal,
  tidal and hydroelectric are under investigation, but likely will not meet
  near or mid-term needs (5 to 10 years).

  	
  

A.

  

B.

  
C.

  	
  

Complete coal plant and gas plant development
  options by September 1, 2006.

Provide recommendation to Board of Directors by
  October 2007.

Fire Island

  Complete study of issues raised by the FAA and report to the Board on results
  in August (contingent on FAA providing results in time) 

  Participate as an MOU partner in activity led by others 

  System integration study (GVEA) 
Wind studies/Corp of Engineers 404 permit work/RFP
  development and issuance (ML&P, pending release of additional Denali
  Commission funds)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  	
   

  	
   

  
	
   

  
	
  4.

  	
  Negotiate
  Labor Contract with Represented Employees

  	
   

  	
   

  	
   

  	
  5%

  
	
   

  	
   

  	    

  	    

  	
   

  	
   

  
	
   

  	
  All three IBEW contracts (Office & Engineering,
  Outside Plant and Generation Plant) and the Culinary Union (HERE) terminate
  on June 30, 2006. A substantial effort will be required by both management
  and bargaining unit personnel to work toward a win/win result.

  	
  A.

  

B.

  

C.

  	
  Establish goals and objectives for each agreement.

  

  Identify negotiating teams for each agreement.

  Provide monthly updates to the Board of Directors.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Stated Objective 

  	
   

  	
  Criteria for Measuring Success in 

  Meeting Stated Objective

  	
   

  	
  Percentage of Base Salary 

  Linked to Success

  
	
   

  	
  

  	
   

  	
  

  	
   

  	
  

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Investigate and negotiate fuel
  options to meet Chugach’s short, medium and long-term needs.

  	
   

  	
   

  	
   

  	
  5% 

  
	
 

	
   

  	
  Chugach has gas contracts with the Beluga Producers
  (Conoco Phillips, Chevron, ML&P) and Marathon Oil Company. Gas volumes
  from all these contracts will run out by approximately 2011. Chugach has an
  additional 120Bcf of additional volumes committed from the Beluga Producers
  (40 Bcf each) but not priced. Based on current use (25 Bcf per year), Chugach
  is obligated to initiate negotiations with Conoco Phillips, ML&P and
  Chevron by January 1, 2007 and agree upon terms by January 1, 2008.

  	
  

A.

  

B.

  

C.

  

D.

  

E.

  

F.

  	
  

Begin negotiating with Conoco Phillips, Chevron and
  ML&P for Period 3 Volumes

Begin negotiating with Marathon for follow-on
  volumes and potential volumes for sales to GVEA 

  Investigate fuel-hedging strategies to mitigate market volatility with singer
  market indices

  

  Investigate alternative fuel options to diversify fuel sources and mitigate
  potential gas shortages and volatile market pricing.

  

  Participate with other gas users and producers to investigate alternatives
  such as LNG import and availability to new gas supplies within Alaska 

  Provide regular confidential updates to the Board of Directors

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]