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HomeMy WebLinkAboutIntertie MEA Memo 1994a5) => Matanuska Electric Association, Inc. P.O. Box 2929 Palmer, Alaska 99645 Telephone: (907) 745-3231 Fax: (907) 745-9328 January 11, 1994 Mr. Bradley Evans Chairman Intertie Operating Committee c/o Golden Valley Electric Association, Inc. Post Office Box 71249 Fairbanks, Alaska 99707 Dear Mr. Evans: In December of 1991, Matanuska Electric Association, Inc. (MEA) submitted a formal written request to the Alaska Energy Authority (AEA) requesting permission to tap the Intertie between the Douglas Substation and the Cantwell Substation. In July 1992, AEA granted conditional approval of the tap, pending resolution of a number of issues by the Intertie Operating Committee (IOC). The Intertie agreement gives AEA, as owner, sole authority to grant taps to the line. The agreement also states that such permission to tap shall not be unreasonably withheld. In giving this conditional approval, AEA delegated its responsibility to consider and allow, or disallow, the tap. MEA has worked diligently toward solution of these issues. As part of this solution, MEA was to transfer ownership of a large portion of the station to the Alaska Electric Generation and Transmission Cooperative, Inc. (AEG&T). This transfer of ownership is being pursued, and it appears that it can be compieted without any insurmountable difficulty. It is our intention to pursue this transfer to completion. The design of the station was also substantially modified to include potential transformers on both 138 kV lines and communication was modified to include a communication channel for any utility that wanted one. All of these changes were made at the expense of MEA, to satisfy requests from the IOC. These items are mentioned to demonstrate MEA's willingness to cooperate with the IOC. Recently, it has become increasingly apparent that various IOC members have been holding the MEA Stevens Substation hostage in order to gain an advantage in resolving a long-standing dispute over operator duties. The operator duties have little bearing on the actual operation of the Stevens Substation. We believe this tactic is unfair to MEA and that under the provisions of the Intertie agreement that AEG&T as a Participant in the Intertie Agreement has the right to tap the Intertie and allow MEA customers in the Talkeetna area to enjoy improved reliability and quality of service. Mr. Bradley Evans Page 2 January 11, 1994 The role of the IOC regarding changes in the Intertie is clearly limited to the review of the proposed design. The IOC has fulfilled its obligation to perform design review, and the changes requested by the IOC have been incorporated into the final design. MEA, therefore, intends to place the Stevens Substation in service. This does not imply that we wish to ignore the IOC — we will abide by any affirmative vote of the IOC. We cannot abide by the lack of action which allows a small group of members to block action. Until the IOC designates otherwise by an affirmative vote, MEA will retain control of the high side switches in the Stevens Substation. As an interconnected utility we will operate these switches only with the approval of the intertie operators. MEA is an all-requirements customer of Chugach Electric Association, Inc. (CEA) and, therefore; CEA will provide power and energy to the station. Losses between the Douglas Substation and the Stevens Substation will be borne by MEA, as will an equitable charge for wheeling over the intervening 26 miles of the Intertie. As an interim solution, MEA will pay the same wheeling rate charged to Golden Valley Electric Association, Inc. (GVEA) and Fairbanks Municipal Utilities System (FMUS) for wheeling over the entire length of the line. We look forward to working with the IOC in resolving the many issues before us, but we cannot allow these disagreements to adversely impact our members by denying them the use of this important facility. / 7 Sindgrely, [ Ken Ritchey General Manager jdb/sh GGEN940110.147 cc: Bob Hufman, AEG&T Sam Matthews, HEA/AEG&T Stan Sieczkowski, AEA/AIDEA / Tim McConnell, AML&P Dave Burlingame, CEA Vince Mottola, FMUS