HomeMy WebLinkAboutIntertie OC Controller Costs and Duties Aug 1993a
State of Alaska
Ds Walter J. Hickel, Governor
by Le Alaska Energy Authority Cx adng MTS
re A Public Corporation
rs ECEIVE BD)
August 12, 1993
Mr. Bradley Evans, Chairman
Intertie Operating Committee AUG 12 1893
Golden Valley Electric Association P.O. Box 71249 Alaska Industrial Development
Fairbanks, AK 99707-1249 and Export Authority
Subject: Controller Costs and Duties
Dear Mr. Evans:
In your letter dated May 18, 1993, you asked that the Energy Authority examine and
determine essential duties as the owner of the Anchorage-Fairbanks Intertie Project.
As you know, because of the recently enacted legislation, the role of the Energy
Authority concerning the Anchorage-Fairbanks Intertie is being transferred to the Alaska
Industrial Development and Export Authority (AIDEA) effective August 12, 1993.
AIDEA will be assessing their role and the manpower requirement necessary to protect
the State's investment in the Anchorage-Fairbanks Intertie. In the meantime, the Intertie
Operating Committee should assume that AIDEA's budget for FY94 is the same as that
previously submitted by the Energy Authority.
Please call me with any questions at 561-7877.
Sincerely,
ldpee A. Khon
Afzal H. Khan
Manager of Engineering Support
AKHiit
ce: eine ak Industrial Development & Export Authority
Stanley E. Sieczkowski, Alaska Energy Authority
David R. Eberle, Alaska Energy Authority
PO. Box 190869 704 East Tudor Road Anchorage, Alaska 99519-0869 (907) 561-7877 Fax: (907) 561-8584
93Q3/IT5249
* ¢ ot Sa Der HC
RECEIVED
BW MAY 21 1993
ALASKA ENERGY AUTHORITY,
27EN VALLEY ELECTRIC ASSOCIATION INC. Box 71249, Fairbanks, Alaska 99707-1249, Phone 907-452-1151
May 18, 1993
Ron Garzini
Alaska Energy Authority
P.O. Box 190869
Anchorage, AK 99519-0869
Subject: 1993 Controller Costs and Duties
Dear Ron: aN
In response to recent correspondence regarding Alaska Intertie . costs from various intertie participants, Golden Valley believes ~— all participant members may be best served by considering the < following. a
Historically, all participants came together to decide the c
appropriate duties of the Northern and Southern Controllers 2"
(NC,SC). It has now been eight years since commencement of +
intertie operations, and participant members have increased their a
knowledge of interconnected operations. Golden Valley perceives E the recent inquiries as to appropriate costs and efficient
operation as a healthy sign of this increased awareness.
Golden Valley has reviewed the Alaska Intertie Agreement (AIA) and
tinds Section 10 to be the most appropriate to our recommendations.
With minor variances, Golden Valley believes the duties and
functions the NC and SC perform are done at the request of
participant members. We interpret this to mean Golden Valley and
AML&P may have their assigned duties modified if a majority of
participants seek changes. Golden Valley invites all participant
members to examine the NC and SC roles in operation of the Alaska
Intertie.
Golden Valley specifically recommends each participant member:
* Examine and confirm duties which they believe are essential to
operation of the Alaska Intertie and monitoring compliance to
the AIA.
s , ‘ 4 .
AUN VALLEY ELECTRIC AS IATION ING. a | CEIV E D
Controller Costs and Duties AUG 12 1993
May 18, 1993 ela ‘ ye ’ Alaska Industri! Development
and Exsort Authority
* Determine which of the current duties may be reduced in scope
or eliminated.
* Examine duties and determine which are redundant.
* Determine which duties could be consolidated for efficiency.
What naturally follows from a utility member's review of duties and
costs is for the Alaska Intertie owner to also review its duties
and costs. After eight years of ownership, we trust AEA has gained
sufficient experience to discover ways to streamline its operations
as owner.
Golden Valley specifically recommends AEA:
* Examine and determine essential duties of the owner.
* Examine and determine the most efficient use of manpower
required by AEA to protect its interests as owner.
Our final recommendation is for CEA to suspend their request for
monthly submittal as long as they believe adequate progress is made
in this self-examination. At the conclusion of this process, if
CEA remains dissatisfied, Golden Valley is prepared to submit
monthly invoices if required.
In closing, Golden Valley is committed to examining ways to
eliminate waste, redundancy, and practices which may have outlived
their useful life. As chairman of the Alaska Intertie Committee,
I request all members be prepared to make specific recommendations
and requests at the next IOC meeting on May 28, 1993.
Bredb\er Econ
Bradley Evans
Ioc Chairman
cc: IOC Members
Afzal Kahn
Tom Lovas
Tim McConnell
Sam Matthews
Vince Mottola
Mike Kelly
Steve Haagenson