Sherri McKay Highers

The committee reviewed and recommended approval of the 2025 Operating and Capital Budget, which outlines total costs, revenues, margins, and capital expenditures for various functional areas including generation, transmission, distribution, and general plant. Additionally, the committee reviewed and recommended approval of a three-year contract extension for financial audit services with KPMG.

The committee discussed the 2025 Member Advisory Council renewal and appointments, made appointments to the 2025 Bylaws, Election, and Nominating Committees, and recommended a fee increase for committee members. They also addressed the appointment of the initial Board of Trustees for the Chugach Electric Association Charitable Foundation and reviewed proposed revisions to various board policies, including those related to open meetings, meeting procedures, committee functions, and director indemnification.

The committee held an election for a new Vice Chair and made several recommendations for Board of Directors action, including the 2025 Member Advisory Council renewal and member appointments, appointments to the Bylaws, Election, and Nominating Committees, and the establishment of a $50 per meeting compensation fee for member committees. Additionally, the committee discussed and recommended the appointment of directors to the Chugach Electric Association Charitable Foundation and proposed modifications to various Board Policies. Personnel and financial matters were also reviewed during an executive session.

The committee meeting included presentations on the 2025 Audit Plan by KPMG, the BRU Quarterly Investment Fund Review, the 3rd Quarter 2025 Capital Tracking Report, and the 3rd Quarter 2025 Financial Information and Variance Report. The committee also entered into an executive session to discuss financial matters and the potential for fraud and internal control processes. Additionally, the committee recommended that the Board of Directors authorize the CEO to enter into a Second Amendment to the Revolving Line of Credit Agreement with the National Rural Utilities Cooperative Finance Corporation, with a limit not to exceed $50 million and an extension to December 21, 2030.

The committee meeting agenda includes discussions on the Alaska Supreme Court Tax Credit Opinion, FERC hydropower pre-application motions to intervene, a legislative update, and a presentation on line loss. Additional business items feature the Quartz Creek transmission line rebuild, renewal of the McMillen contract, and a gas supply update covering asset retirement obligations and Cook Inlet prevailing prices. An executive session is planned to discuss cybersecurity and further gas supply updates.