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HomeMy WebLinkAboutAK Intertie Agreement Memo 1993— vel p< sf ed wv vie wn nea, Se ASW iy (it ) pot gh (OLDEN VALLEV ELECTRIC ASSOCIATION INC. Box 71249. Fiurbanks, Alaskis 99707-1249, Phone 907-452-1151 May 19, 1993 AM Be - - RECEIVED Ron Garzini | ; © Alaska Energy Authority MAY ? £ 1995 PL.O2) 1B 190869 io ALASKA ENERGY AUTHORITY Anchorage, AK 99519-0869 Subject: GVEA Concerns - Stevens Substation Dear Ron: After review of the Alaska Intertie Agreement (AIA), little guidance has been’ obtained regarding the operation and incorporation of MEA's proposed Stevens Substation. Golden Valley supports MEA's direct utilization of the Alaska Intertie, and to date, we have worked well with MEA in resolving many issues. What remains are issues which Golden Valley feels would be best coordinated and resolved by the owner of the Alaskan Intertie. There are three issues and one task Golden Valley desires AEA to find resolution to, and accomplish. The final resolution to these issues may lead to other concerns and if necessary, we wish to reserve the right to bring these additional concerns to your attention. MEA ALASKA INTERTIE PARTICIPANT STATUS * \/does . MEA have participant status and rights through their “association with AEGET? MEA is not signatory to the AIA and the = contract is silent on this questicn. WHEELING MEA has requested a wheeling rate which is not specified in the contract. What is the appropriate wheeling rate? MITCR Depending on the determination of MEA's participant status, what MITCR arrangement should be allowed for the Steven's load? The load may be served from either north or south, and the final arrangement should allow for MITCR's in each direction. How should MITCR be modified in the event of load growth? GOLDEN VALLEY ELECTRIC ASSOCIATION ING GVEA Concerns - Stevens Substation May 19, 1993 Paye 2 CONTRACT The largest remaining task is amending the Intertie Contract itself. The construction and operation of a substation tapped into the intertie by a non-participant (?) has numerous contract consequences. In the event this request raises significant concern among other participant members, a special called meeting to discuss the Stevens issue in more detail may be appropriate. To date, the members have solved mostly technical issues and have left contractual impacts unaddressed. Golden Valley desires to have all issues, technical and contractual, resolved to everyone's satisfaction before energization of Stevens Substation. We would appreciate your support and assistance in meeting this goal. Beadle Evans Bradley Evans IOC Chairman cc: IOC Members Afzal Kahn Tom Lovas Tim McConnell Sam Matthews Vince Mottola Mike Kelly Steve Haagenson Shan Curt WO*s iy YU “ Exior \-l-l Cven — S0.,t0 ch <é Se ra! : RECEIVED BY MAY 21 1995 , ALASKA ENERGY AUTHORITY. 6M VALLEY ELECTRIC ASSOCIATION INC. Box 71249, Fairbanks, Alaska 99707-1249, Phone 907-452-1151 ee May 18, 1993 ¢ Ron Garzini Alaska Energy Authority { ‘ be P.O. Box 190869 Sacto Cx City Anchorage, AK 99519-0869 Subject: 1993 Controller Costs and Duties Dear Ron: 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. Historically, all participants came together to decide the appropriate duties of the Northern and Southern Controllers (NC,SC). It has now been eight years since commencement of intertie operations, and participant members have increased their knowledge of interconnected operations. Golden Valley. perceives the recent inquiries as to appropriate costs and efficient operation as a healthy sign of this increased awareness. Wap eae yt rT) t/ 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. ——) MAN VALLEY LiL CTRIC ASSC ATION INC. Controlier Costs and Duties May 18, 1993 Page 2 e 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. 1 | * 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. Bradley Evans IOC Chairman cc: IOC Members Afzal Kahn Tom Lovas Tim McConnell Sam Matthews Vince Mottola Mike Kelly Steve Haagenson RT