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HomeMy WebLinkAboutBradley Lake PMC Teleconference Mtg. - Teleconference Tue, Nov 3 1998 2BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES Alaska Industrial Development and Export Authority 480 West Tudor Road Anchorage, Alaska Regular Meeting Tuesday, November 3, 1998 — 1:00 p.m. 1. CALL TO ORDER Chairman Eugene Bjornstad called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 1:00 p.m. on Tuesday, November 3, 1998, in the Board Room of the Alaska Industrial Development and Export Authority, Anchorage, Alaska, to conduct the business of the Committee per the agenda and public notice. 2: ROLL CALL Roll was called by Shauna Dean. The following members were present, and a quorum was established: Eugene Bjornstad, Chairman Chugach Electric Association Wayne Carmony (teleconference) Matanuska Electric Association Mike Kelly (teleconference) Golden Valley Electric Association Norm Story (teleconference) Homer Electric Association Dennis McCrohan Alaska Energy Authority Meera Kohler (teleconference) Anchorage Municipal Light & Power os PUBLIC ROLL CALL Others Present: Joe Griffith, Chugach Electric Association Brian Hickey, Chugach Electric Association Brad Evans, Golden Valley Electric Association (teleconference) Robert Hanson, Golden Valley Electric Association (teleconference) Rick Eckert, Homer Electric Association (teleconference) Don Stead, Homer Electric Association (teleconference) Dan Helmick, Anchorage Municipal Light & Power (teleconference) Tim McConnell, Anchorage Municipal Light & Power (teleconference) Don Zoerb, Matanuska Electric Association (teleconference) Bradley Lake Project Management Committee Meeting Minutes Tuesday, November 3, 1998 Page 2 of 7 4. Ray Morgan, Matanuska Electric Association (teleconference) Ron Saxton, Ater Wynne Hewitt Dodson & Skerritt (teleconference) Larry Hittle, Ater Wynne Hewitt Dodson & Skerritt (teleconference) Stan Sieczkowski, Alaska Energy Authority Ken Vassar, Wohlforth, Argetsinger, Johnson & Brecht Keith Laufer, Alaska Energy Authority Valorie Walker, Alaska Energy Authority Shauna Dean, Alaska Energy Authority John Moore, Prudential Securities (teleconference) Nancy Watkins, Prudential Securities (teleconference) PUBLIC COMMENT There were no public comments. 5; AGENDA COMMENTS There being no additions or comments, the agenda was adopted by unanimous consent. 6. APPROVAL OF MEETING MINUTES — June 15, 1998 MOTION: Ms. Kohler moved to approve the meeting minutes of June 15, 1998. Mr. Story seconded the motion. A voice vote was taken and the minutes were unanimously approved. 7. NEW BUSINESS A. Bradley Lake Bond Refunding — Joe Griffith Mr. Griffith said Prudential approached AIDEA and the power purchasers in early October with a refunding analysis for the first series bonds that are due in 2021. He said Valorie Walker did additional work regarding the various funds that are guaranteed and they must be kept in place for the duration of the deal. This resulted in a reassessment dated October 29" that he faxed out to all the parties. It appears the time is right for a forward refunding activity on the 2021 term bond. It appears that option three from Prudential’s October 29" letter could save approximately a $2.8 - $2.9 million in present value savings. He said he had discussions with Ron Saxton and Valorie Walker and the conclusion was that it was worthy of bringing forward to the PMC for consideration. He said there is potential for this to be a beneficial transaction, and if it is the will of the PMC, we, or other so designated by the PMC would proceed forward. Mr. Saxton said this would be a good opportunity to refund the bonds. Mr. Bjornstad asked whether a budget amendment or a motion to authorize work by bond counsel is needed today. Mr. Ron Saxton replied that no decisions on options will be made today and there is currently no proposal for a budget amendment. Bradley Lake Project Management Committee Meeting Minutes Tuesday, November 3, 1998 Page 3 of 7 Mr. Saxton said there is work to be done with Prudential for a more definitive schedule and budget and then have another conference call to actually approve a budget amendment. The budget amendment being the cost of moving the transaction forward. He said it is his understanding, from conversations with AIDEA and Prudential, that the Energy Authority will receive no financial benefit from this transaction — the benefit would go to the utilities. While the Authority was willing to cooperate fully, they do expect to be reimbursed for their costs to the extent that there are costs incurred and the transaction ultimately didn’t go forward. The approach is that although there is a substantial payback if interest rates stay in the range they are the state would be expecting the utilities to bear the costs and to accept the risks if the transaction did not close. Mr. Griffith said it appears, at this point in time, that if the PMC is genuinely interested in proceeding with this transaction the PMC could authorize the budget amendment of $150,000 to proceed with the deal. Then, at some point in the future, a more concrete proposal could be brought back before the PMC. Mr. Kelly inquired as to the fees. He asked that if the transaction does not occur, would there be any other costs besides the $150,000? Mr. Griffith replied there would be no other costs besides the $150,000 if the transaction failed. Mr. Helmick asked whether this transaction could be done as a current refunding in early 1999. Mr. Moore said that this is almost a current refunding as it stands now. It is called a forward, but the existing bonds that we are looking to refund are callable on April 1, 1999. Tax law gives us the ability to sell refunding or close a refunding issue 30 days prior. With that you could be closing on April 1, 1999, if the schedule works out such that you are selling the bonds in January, then you have a three-month forward and accordingly we have assigned a very low interest rate penalty for that three months forward. Mr. Helmick asked whether Prudential could run an analysis showing the difference between the current refunding and the forward refunding. Mr. Moore said the mechanics would be virtually identical between a current refunding and a forward refunding. The interest rate impact is very minor. He said Prudential would provide an analysis comparing the two transactions. Mr. Saxton said in the original financing each of the utilities provided an opinion of counsel about the various corporate capability to enter into the contract and our firm, acting on behalf of you collectively, need to be able to rely on those opinions saying that everything is still okay — that all of you still believe the contract to be binding against you. When we entered into this discussion on the previous refunding, a few of the lawyers believed that they needed to put a substantial amount of work into updating their opinions before they would allow us to rely on them. That was done and ultimately each of them was satisfied. In this round, we would still need something from each of your lawyers that basically says nothing has changed in the period since they updated it a year or so ago until now. He said he hoped that would be a minor activity for the lawyers. lf there is a fear of that turning into a big activity, discussions will need to be held because the timeline is tight. Bradley Lake Project Management Committee Meeting Minutes Tuesday, November 3, 1998 Page 4 of 7 Mr. Hittle said the last time there was a settlement agreement it roused a lot of interest in all of the attorneys and that does not appear to be happening in this financing. Mr. Story stated that we need to consider moving forward with the transaction. Mr. Carmony asked what the PMC is expected to receive for the $150,000 investment. Mr. Griffith replied that it is a contingency budget for expenses related to pulling together the documentation of the opinions that are necessary for Ron Saxton and companies efforts and principally AIDEA bond counsel. He said the agreement with the PMC is that the utilities will fund their in-house attorneys. We have never used Bradley Lake operating funds to pay for in-house attorneys. Mr. Carmony indicated that he would like for Mr. Don Zoerb to become more involved in this transaction as it moves forward. Mr. Bjornstad stated he did not think this would be a problem. Mr. Kelly stated GVEA would like to move forward. He also asked whether there would be a discussion today about the three alternatives. Mr. Griffith said the PMC could talk about the options today. He said the only difference is how you might structure the remaining amount of the debt once you have done a forward refunding to preserve the funds and the requirements we have. What Prudential recommended in option three, in essence, is to keep some portion of the existing debt in place so we do not end up with a large negative arbitrage. Mr. Kelly said that AIDEA was very hesitant to move forward until the utilities were all in agreement with the transaction. MOTION: Mr. Kelly moved to authorize the expenditure not to exceed $150,000 to pursue a refunding of the 2021 bond series for Bradley and to also authorize Joe Griffith and Ron Saxton to move ahead with AIDEA and their bond people as proposed. Mr. Carmony asked whether the motion could be amended to include Mr. Zoerb also. Mr. Kelly said that every utility is going to participate, however each utility will pay for their own expenses. Mr. Carmony said he didn’t think that Mr. Griffith's expenses were going to be paid. He said it was his understanding that it was just the attorney's that the PMC was paying with this money. Mr. Kelly indicated that was his understanding as well. Mr. Griffith said that is how the last transaction was handled and presumed this transaction would be handled in the same manner. Mr. Carmony said he just wanted to make sure that Don would be involved with all stages in the process. Mr. Carmony withdrew his request to amend the motion. Bradley Lake Project Management Committee Meeting Minutes Tuesday, November 3, 1998 Page 5 of 7 Mr. Saxton said the way the PMC is set up as an organization is that he received his directions for legal work from the Chairman. It is always clear who has authority to tell him to do something and who can answer his questions. At the last refunding, this group collectively, on the Chairman’s recommendation, designated Joe as the point person to work with him. Mr. Carmony asked if it is possible to have a process that includes more than just Ron and Joe’s review. Mr. Saxton replied that the process could be amended. Mr. Saxton said that each utility will have somebody who has to be involved in reviewing documents. Each utility will need to have their attorney involved at least in some limited capacity. He said his point is that somebody has to be playing the coordinator role with Prudential and with AIDEA to put all of this together. MOTION: Mr. Dennis McCrohan moved to amend the motion to replace the word AIDEA with AEA and to also amend the Prudential documentation to refer to AEA instead of AIDEA. Mr. Story seconded the amended motion. A roll call vote was taken, and the motion passed unanimously. B. Status of Instability and Control Response Project - Hickey Mr. Hickey briefed the PMC on the status of the project. He stated the assembly and testing of the data acquisition system has been completed. The final wiring is being completed on the assembly and is intended to be shipped to Bradley Lake around the 15" of November. At that time, the data acquisition system will be installed and commissioned and an off-line testing will be done, depending on unit outages and development of the test plan. He complimented Randy Johnson and Larry Hembree at ML&P stating they put a lot of time into developing and assembling the data acquisition system. Mr. Hickey said they did encounter some delays in the assembly of the data acquisition system. There were some bad boards and it was not scanning at the rate expected. The boards were sent back to National Instruments and the problem was found and corrected. Chugach is completing the relay control wiring on it so it’s in its final assembly. It will be moved to Bradley around the 15" of November. At that time, it will be commissioned, which will require an end-to-end check on all the circuits that Don has installed. A draft test plan should be out for the review of the O&D committee by this Thursday which would include the commissioning of the data acquisition system and the offline testing. The window for online testing of the unit was missed because from a reliability standpoint, it would not be appropriate to test it in the middle of winter. The online testing of the unit is scheduled for early June. If we can get an outage, once the online testing is complete we will have at least 60 to 90 days in evaluating the data we get. Essentially, we’ve lost a year because we missed the August window for testing. Mr. Hickey briefed the PMC on the current budget situation. He said the current budget situation is as follows: of the $150,000 Bradley instrumentation system, $113,659 has been expended; of the $228,600 action plan budget, $148,055 has been expended; and of the $4,000 O&D expense budget, $3,235 has been expended. Bradley Lake Project Management Committee Meeting Minutes Tuesday, November 3, 1998 Page 6 of 7 Cc Budget Amendment/Adjustment $45,000 — Repairs to the Nuka Diversion — Story Mr. Story said that during the past winter there was a damage cost to the Nuka diversion. Discussions were held with the Chairman and, subsequently, the repair was made because the water was hemorrhaging at a strong rate. He indicated the O&D committee has reviewed this issue. Mr. Stead briefed the PMC as to the damage to the Nuka diversion. He said that during winter, an ice dam formed that backed up a considerable amount of water that overtopped the diversion. In June, the ice dam broke when the water went out. It downcut the Nuka diversion on the West side and it caused a breach in that diversion about 20 feet wide by 6 feet deep. USGS informed us of the problem in July when they went to inspect their equipment. A repair plan was developed in August and the repairs were accomplished in September. The diversion was rebuilt to its original specifications and the cost was approximately $37,000. Civil Engineer Jack Cushing performed a study of the Nuka marine and is developing recommendations on how to prevent this from occurring in the future. We are asking for a $45,000 amendment to the budget for the cost of this study. MOTION: Mr. Story moved to approve a budget adjustment of $45,000 to cover the Nuka diversion repair. Seconded by Mr. Kelly. A roll call vote was taken, and the motion passed unanimously. D: Authorization — HEA to Pursue Assumption of Communications — Bradley Lake Hydroelectric Project — Story Mr. Story said approximately $180,000 is spent for communications from Bradley back to Chugach control. A majority of this is microwave cost from the State of Alaska. Recently, Homer Electric completed a 24 fiber optic project between Homer and Kenai. We are proposing that we take over the maintenance of the necessary microwave links from Bradley down to the Homer facility. We would then pack the signals up via our fiber optic project and turn those signals over to Chugach Electric for transport to Anchorage by their recently upgraded microwave project. In doing so we believe that we can cut the budget to approximately $90,000 a year. We believe that we can probably save $50,000 to $60,000 a year in communications by taking over the project. He requested approval to pursue the issue. MOTION: Mr. Story moved to authorize Homer Electric to work with the O&D committee and the state to pursue the assumptions of the communications for Bradley in conjunction with Chugach Electric for the last link. Seconded by Mr. Mike Kelly. In response to Mr. Kelly, Mr. Story said that they would report back to the O&D committee and the O&D committee report back to the full board with recommendations. In response to Mr. Carmony, Mr. Bjornstad said that this will not result in lost revenue to Chugach. Bradley Lake Project Management Committee Meeting Minutes Tuesday, November 3, 1998 Page 7 of 7 Mr. Carmony requested that the O&D committee look at the terms of the net cost and where they file when the evaluation is done and bring that back to the board. A roll call vote was taken, and the motion passed unanimously. Mr. Sieczkowski said he would contact the state and get an update on all the circuit paths and purposes and bring that to the O&D committee for the evaluation and comparison. 8. COMMITTEE COMMENTS There were no committee comments. A. Next Meeting Date It was the consensus of the Committee that the next meeting of the Bradley Lake Hydroelectric Project Management Committee be set for December 9" at 9:00 a.m. 8. ADJOURNMENT Chairman Bjornstad adjourned the meeting at 10:15 a.m. Eugete Bjomstad irman arress Lani VMc bf. Alaska Energy Authority, Secretary Bradley Lake PROJECT MANAGEMENT COMMITTEE MEETING [/- 3 -78 (Date) eleconferencee @ 9:0) an. (Location) PLEASE SIGN IN ry NAME REPRESENTING Ge CA we ee Aes es It if 1 ev77e BiorasZed Ce ie Bot Zz tL, ft Hea AE, lah Meche, Arsetsonaee of ob AEA CHCA, 92Q2\IT9884 ane Bradley Lake PROJECT MANAGEMENT COMMITTEE MEETING (Date) No. NAME (Location) PLEASE SIGN IN REPRESENTING — x 22 92Q2\IT9884 Chugach Electric Association Inc. Anchorage, Alaska October 16, 1998 To: Bradley Lake Operations and Dispatch Subcommittee From: Brian Hickey, Director, Technical Services, Chugach Electric Association Inc. Bh. Subject: Status of Bradley Lake Instability Project The status of the project is as follows: L D aaene AS) The components of the DAS have been ordered, received, and assembled. The system is currently being bench tested and is successfully scanning up to 74 channels at an 8 KHZ sampling rate for a 60-second period. We will begin a 600-hour test on the unit beginning on October 23. To verify the robustness of the data acquisition algorithms, the unit will be placed on-line, in Anchorage, for approximately one month. During this month the unit will be scanning test inputs created by randomly generated simulations of system events. These events will occur several times per day. At the conclusion of this testing, assuming no problems are found, the unit will be shipped to Bradley Lake for installation and commissioning. Installation is planned for late in the week of November 16, 1998, and will require a one day outage on each unit. Plant personnel have completed 75% of the in plant wiring required to install the DAS. Woodward Governor has delivered, installed and tested data acquisition cards in both Bradley Lake units. These cards provide internal governor quantities to the DAS, and allow the insertion of test signals to the governor for bench marking purposes. Bradley Lake Test Plan. We have developed a draft test plan that will consist of three test phases. . The first is installation and commissioning of the DAS. ° The second is off line unit testing. : The third is on-line system testing. Site installation and commissioning of the DAS consists of the following: installation of the DAS computer, DAS connection to existing plant cabling, installation of several high precision reference transducers, and interconnection of the DAS computer to the Woodward governor I/O cards. Following the DAS installation, commissioning will consist of end to end check-out on each monitored circuit, and a simulated trigger for data collection. As stated above, connection of the DAS will require a one day outage on each unit. Off line unit testing will consist of injection of step input signals and small signal frequency sweeps at various control points within the Woodward governor, the Fuji exciter and PTI power system stabilizer. Appropriate manufacture’s technical personnel will be consulted and on-site, as required, for this testing. Control loop output data will be collected and compared with simulated quantities. This bench marking of the various internal PSSE control models, e.g., governor PID algorithm, Power System Stabilizer algorithms, exciter control algorithms will provide guidance and allow increased accuracy with regard to the system instability simulations. These simulations will be used to develop the on-line testing procedures in step three. Off -line testing will require a one day outage on each unit, and will need to be coordinated with the various manufacture’s on-site technical representatives. On-line testing will consist of several routine load rejection tests, and a proposed temporary reconfiguration of the interconnected system to allow triggering of an unstable condition in the Bradley plant. The routine load rejection tests will provide data on internal Bradley plant performance. The triggering of Bradley Lake instability will provide both Bradley internal unit data and data describing Bradley’s interrelationship with the power system during an unstable oscillation. The draft test plan will be ready for review and comment the week of November 5, 1998. At that time it will be circulated to all O&D members, Stone & Webster, and Electric Power Systems. I anticipate completing review, comment and approval of this document by mid December. Once the test plan is formalized, off-line testing will be scheduled. I anticipate scheduling this testing to occur in mid-January 1999, as unit commitment and project water levels allow. Due to system security constraints, on-line testing will be scheduled for mid June 1999. During June and July of 1999 we will review the test data from the on-line tests, and propose solutions to the instability and control problems. We will schedule required testing and implementation of these solutions at that time. s {PSS/E Modificati Electric Power Systems has completed their work on the PSS/E model, as well as, their report on the deflector verses power curves and relevant PSS/E code. IV. Financial Status Currently the project is well within budget. I do not foresee any cost overruns. The following table summarizes the budget status, and the attached spreadsheet contains an itemized accounting of expenses. This expense summary includes charges through August 31, 1998 Budget Actual Budget as % of Actual | | Bradley Lake Instrumentation | $ 150,000 $113,659 76% | Bradley Lake Action Plan $ 228,600 $148,055 65% | Bradley O&D Expense $ 4,000 $ 3,235 80% | Total Budget $ 382,600 $ 264,949 70% V. Conclusion I anticipate completion of the project in the fall of 1999. This places the project approximately twelve months behind schedule. The schedule delays are primarily due to two factors. First, during the last six months, due to other commitments, I have been unable to spend any significant amount of time on the project test plan development. My delays in formalizing the test plan have caused us to miss the on-line testing window of June through August 1998. Another factor in the delay is the R&D nature of the Data Acquisition System development. This device is a unique and creative solution to the gathering of data at high rates of speed. I am not aware of any vendor or engineering company that can provide this type of data collection. Kudos are due to Larry Hembree and Randy Johnson of ML&P. Larry and Randy have spent many hours developing the DAS; without there commitment to the project, we probably would have been unable to complete the testing required to solve this problem. Stan Sieczkowski will be scheduling an O&D meeting for the week of November 2, 1998. Larry Hembree and Randy Johnson will be available to give O&D members a demonstration of the Data Acquisition System. Status of Bradley Instability Funding as of 8/31/98 Remaining Vendor Date cee Description Funding Source Amount Available} Invoice Amount Amount Invoice # Available Construction List - Item 18} $150,000.00 System Analysis Equip Alaska Electronics 07/98 Data Acquisition System ? .00} $149,990.00 03/98 - 08/98 . $144,597.00 03/98 ! $142,841.57 06/98 t $140,866.53 07/98 : $138,387.61 08/98 . $138,132.97 CEA Indirect Labor 03/98 ; $137,359.12 06/98 ; $136,512.15 07/98 : $135,440.56 08/98 Labor ; $135,325.52 Converter Concepts 05/20/98 Data Acquisition System $135,215.82 Datum 06/09/98 Data Acquisition System $3,472.95] $131,742.87 Electric Power Systems 11/19/96 Bradley Lake Documentation Review $18,684.31] $113,058.56 01/05/97 Bradley Lake Documentation Review $5,551.23] $107,507.33 Bradley Lake Documentation Review $12,029.48] $95,477.85 ERA Aviation Airfare - Bradley Lake —* $312.00] $95,165.85 Federal Express Delivery of Documentation $42.59] $95,123.26 h:data\excel\workorders\D9690089-8-31.xIs 1 of 4 Status of Bradley Instability Funding as of 8/31/98 CEA Remaining Description Funding Source Amount Available] Invoice Amount | Amount Invoice # Available Construction List - Item 18 System Analysis Equip Industrial Computer 05/21/98 Data Acquisition System i $90,543.41 National Instruments Data Acquisition System $27,698.45] $62,844.96 Omega Engineering 06/03/98 Data Acquisition System $4,184.50] $58,660.46 Travel Expenses 6/7-6/16/98 Meals Chuck Klepaski $27.76] $58,632.70 06/09/98 Cab Fare $20.00] $58,612.70 Woodward Governor 04/22/98 Governor I/O Modules $4,601.36] $54,011.34 05/08/98 Governor I/O Modules $8,271.36] $49,409.98 05/28/98 Governor I/O Modules -$3,670.00] $57,681.34 06/04/98 Governor I/O Modules $2,260.00} $47,149.98 06/30/98 Governor I/O Modules $7,775.00} $39,374.98 06/30/98 Governor I/O Modules $3,033.91] $36,341.07 Subtotal: $113,658.93 01/14/97 Bradley Lake Instability ‘Action Plan Items 1, 2, 3 03/20/98 To correct Algorithms PSSE & Additional Funding Machine Testing & Instrumentation Consultation CEA Labor 05/97 - 09/97 |22079 f $227,906.41 10/97 - 03/98 22406 $227,128.16 CEA Indirect Labor Indirect Labor : $226,824.51 10/97 - 03/98 }22406 Indirect Labor $226,483.82 h:data\excel\workorders\D9690089-8-31.xIs 2 of 4 03/02/97 05/23/97 05/30/97 07/14/97 08/15/97 01/09/98 07/09/98 ERA Aviation Federal Express 04/24/97 08/08/97 10/03/97 06/05/98 Homer Air 04/23/97 Stone & Webster 06/25/97 07/18/97 Woodward Governor 02/23/98 h:data\excel\workorders\D9690089-8-31.xIs CEA Invoice # 22079 22079 22079 22406 Not Inv Yet Status of Bradley Instability Funding as of 8/31/98 Description Analysis of Historical Instability Events Bradley Tunnel Model Review - Milestone Deliverable Bradley Lake Governor Study - Woodward Governor Functional Description Firm Price Proposal - Milestone #3 PTI Governor Model Documentation RFP Task 3b, 3c, 3d; Proposal Task 3a - Bradley Lake Governor Model - Integrate Tunnel Model into PSS/E Bradley Governor Study Task 3 e, f, g, h Gas Turbine Ambient Temperature Modification Airfare - Bradley Lake Delivery of Documentation Delivery of Documentation Delivery of Documentation Delivery of Documentation Homer Air - Air Fare (Ed Stephens) Bradley Lake Stability Bradley Lake Stability Round Table Discussion Instability Variables Subtotal: 3 of 4 Funding Source Bradley Lake Instability Action Plan Items 1, 2, 3 Amount Available] Invoice Amount $21,997.50 $13,705.00 $12,475.00 $20,020.00 $24,080.00 $37,437.00 $11,400.00 $134.00 $37.70 $33.66 $12.75 $8.10) $41.00 $768.64 $827.26 $2,961.84 $148,055.63 Remaining Amount Available $204,486.32 $190,781.32 $178,306.32 $158,286.32 $134,206.32 $96,769.32 $85,369.32 $85,235.32 $85,151.21 $85,201.66) $85,188.91 $85,143.11 $85,102.11 $84,333.47 $83,506.21 $80,544.37 Status of Bradley Instability Funding as of 8/31/98 CEA Remaining Description Funding Source Amount Available] Invoice Amount | Amount Invoice # Available Operations & Dispatch Operating Budget Sheppard Salon 02/23/98 22406 Machine Testing Seminar Subtotal: Total Amounts: $382,600.00 $264,949.92] $117,650.08 h:data\excel\workorders\D9690089-8-31.xls 4o0f4 ALASKA INDUSTRIAL DEVELOPMENT * AND EXPORT AUTHORITY /= ALASKA @@E™ ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA Tuesday, November 3, 1998 — 9:00 a.m. TELECONFERENCE Or, By Electronic Media at AIDEA — 480 W. Tudor Road de CALL TO ORDER Bjornstad Ds ROLL CALL (for Committee members) 3. PUBLIC ROLL CALL (for all others present) 4. PUBLIC COMMENT 5. AGENDA COMMENTS 6. APPROVAL OF MEETING MINUTES — June 15, 1998 El NEW BUSINESS A. Bradley Lake Bond Refunding Griffith B. Status of Instability and Control Response Project Hickey Cc. Budget Amendment/Adjustment $45,000 -- Repairs to the Nuka Diversion Story D. Authorization - HEA to Pursue Assumption of Communications -- Bradley Lake Hydroelectric Project Story 8. COMMITTEE COMMENTS A. Next Meeting Date Bjornstad 9. ADJOURNMENT 11/02/98 MON 10:46 FAX 562 6994 CEA EXECUTIVE -_ . 001 Oct-30-48 O2:0ipm From-HOMER ELEC 9072353323 T-416 P.O1/01 = F-788 Nakita Al DEA fs a Weta rit * Homer Electric Association, Inc. Corporate Qttice Central Peninsuls Service Center 3977 Luke Street 280) Airport Way Homes. Aloka Y9003-7680 Kona, Aivoka yori S280 Phone (YN7) 235 BSS Phone (Y07) 283 3331 FAX (907) 235-3315 VAX (QUT; 283-722 October 29, 1998 eT Mr. Gene Bjornstad, Chairman fees Bradley Project Management Commiuce aT Chugach Electic Association, Inc. P.Q. Box 196300 Anchorage, AK 99519-6300 Dear Gene: RE: Agenda Items for BPMC Meeting I would like to include two agenda items for the upcoming meeting. The first is a budget amendment for repairs to the Nuka diversion. Repairs were completed on September 17, 1998. Costs associated with the repairs were accumulated in a mew account and totaled $32,481.20. There will be some charges still to be included and a budget adjustment of $45,000 is being requested. The second item is to authorize HEA ro pursue the assumption of the communications for Bradley. The State Department of Communications currently maintains the system at a cost of $179,822. This cost includes maintaining the two-way radio circuits and the microwave links to Anchorage. HEA proposes to assume these tasks and place the communications onto the HEA fiber system. Chugach could assume the traffic at the Bernice Lake Power Plant for relay into your system. HEA would perform the same service that is currently provided on a more secure network for one half the cost, approximately $90,000. Thank you for including these items on the agenda. Sincerely, HOMER ELECTRIC ASSOCIATION, INC. N. L. Story General Manager P\ENGR\NLS\COMMUNICATE NLSijs c: Waynt Curmony of Dave Calvert \ Stan Sieczkowski \ N Mike Kelly Meera Kohler > pate: //-3-7¢ BRADLEY PMC VOTING Agenda Item No. 42h +A AY A “Koll Coll lectin Mints BL Bout “Res == ao is = CITY OF SEWARD 01% [| | MATANUSKA ELEC Assoc 14% [71212] [poo] ZL CHUGACH ELEC ASSOC 30% ee] uy me HOMER ELEC ASSOC 12% “7 ee GOLDEN VAL ELEC ASSOC 17% iE eer nzE MUNI LIGHT & POWER 26% [7{_] eT] Vv ALASKA ENERGY AUTHORITY Zia F] aa A=4+ OVER 51% B = AEA CONCUR With A C = UNANIMOUS D= MAJORITY VOTING METHOD A: 3) Establishment of FY estimated annual Requiring four yeas with 51% of utilities, with no AEA vote: 1) Procedures for scheduling, production and dispatch of project power. 2) Establishment of procedures for use of each purchaser's water allocation (AEA assent required for license requirements). 3) Selection among alternative methods that do not involve AEA for funding required project work. VOTING METHOD B: Requiring 4 yeas with 51% of utilities and AEA concurrence: 1) Arranging operation and maintenance of project. 2) Adoption of budget of annual project costs. VOTE(93Q3/BC5272) 4) 5) 6) 7) 8) 9) payment obligation and schedule of each purchaser. Determination of annual project costs after each FY. Evaluation of necessity for and scheduling of required project work. Determination of appropriate amount of insurance. Adoption of additional minimum funding amounts for renewal and contingency reserve fund above that required by bond resolution. Selection among alternate methods that involve AEA for funding required project work. Adoption or amendment of procedural committee rules (except dispute resolution). 10) Adoption of project maintenance schedules. 11) 12) 13) 14) 15) Determination of rules, procedures and accounts necessary to manage project when no bonds outstanding. Evaluation and approval of optional project work and compensation for such work. Application of insurance claims proceeds not governed by bond resolution. Approval of procedures and any individual utility agreements relating to electric power reserves for project. Approval of consultants. VOTING METHOD C: Unanimous vote by all (including AEA) VOTING METHOD D: Majority vote (including AEA) Election of Officers BRADLEY PMC VOTING DATE: Agenda Item No. A l (@ 4 l \ ) Drlgetl eed — HEA Bh Aso. ves NO ABS YES NO ABS YES NO ABS CITY OF SEWARD 01% be MATANUSKA ELEC ASSOC 14% we Wis CHUGACH ELEC ASSOC 30% [ZI “i HOMER ELEC ASSOC 12% [ZL Cee [ GOLDEN VAL ELEC ASSOC 17% BE Le MUNI LIGHT & POWER 2 ES) eee Ee ALASKA ENERGY AUTHORITY ZI Zi A=4+ OVER 51% B = AEA CONCUR With A C = UNANIMOUS D = MAJORITY VOTING METHOD A: Requiring four yeas with 51% of utilities, with no AEA vote: 1) Procedures for scheduling, production and dispatch of project power. 2) Establishment of procedures for use of each purchaser's water allocation (AEA assent required for license requirements). 3) Selection among alternative methods that do not involve AEA for funding required project work. VOTING METHOD B: Requiring 4 yeas with 51% of utilities and AEA concurrence: 1) Arranging operation and maintenance of project. 2) Adoption of budget of annual project costs. VOTE(93Q3/BC5272) 3) Establishment of FY estimated annual payment obligation and schedule of each purchaser. 4) Determination of annual project costs after each FY. 5) Evaluation of necessity for and scheduling of required project work. 6) Determination of appropriate amount of insurance. 7) Adoption of additional minimum funding amounts for renewal and contingency reserve fund above that required by bond resolution. 8) Selection among alternate methods that involve AEA for funding required project work. 9) Adoption or amendment of procedural committee rules (except dispute resolution). 10) Adoption of project maintenance schedules. 11) Determination of rules, procedures and accounts necessary to manage project when no bonds outstanding. 12) Evaluation and approval of optional project work and compensation for such work. 13) Application of insurance claims proceeds not governed by bond resolution. 14) Approval of procedures and any individual utility agreements relating to electric power reserves for project. 15) Approval of consultants. VOTING METHOD C: Unanimous vote by all (including AEA) VOTING METHOD D: Majority vote (including AEA) Election of Officers s DATE: BRADLEY PMC VOTING Agenda Item No. YES NO ABS YES NO ABS YES NO ABS CITY OF SEWARD 01% ber] ea MATANUSKA ELEC ASSOC =: 14% [_[ [| [pees CHUGACH ELEC ASSOC 30% webs HOMER ELEC ASSOC 1% [qe | Pere] GOLDEN VALELEC ASSOC. 17% [_| [| Pee] ee MUNI LIGHT & POWER 26% | | | ALASKA ENERGY AUTHORITY PE | A=4+ OVER 51% B=AEA CONCUR With A C = UNANIMOUS D= MAJORITY VOTING METHOD A: 3) Establishment of FY estimated annual 11) Determination of rules, procedures and Requiring four yeas with 51% of utilities, with no AEA vote: 1) Procedures for scheduling, production and dispatch of project power. 2) Establishment of procedures for use of each purchaser's water allocation (AEA assent required for license requirements). 3) Selection among alternative methods that do not involve AEA for funding required project work, VOTING METHOD B: Requiring 4 yeas with 51% of utilities and AEA concurrence: 1) Arranging operation and maintenance of project. 2) Adoption of budget of annual project costs. VOTE(93Q3/BC5272) payment obligation and schedule of each purchaser. 4) Determination of annual project costs after each FY. 5) Evaluation of necessity for and scheduling of required project work. 6) Determination of appropriate amount of insurance. 7) Adoption of additional minimum funding amounts for renewal and contingency reserve fund above that required by bond resolution. 8) Selection among alternate methods that involve AEA for funding required project work. 9) Adoption or amendment of procedural committee rules (except dispute resolution). 10) Adoption of project maintenance schedules. 12) 13) 14) 15) accounts necessary to manage project when no bonds outstanding. Evaluation and approval of optional project work and compensation for such work. Application of insurance claims proceeds not governed by bond resolution. Approval of procedures and any individual utility agreements relating to electric power reserves for project. Approval of consultants. VOTING METHOD C: Unanimous vote by all (including AEA) VOTING METHOD D: Majority vote (including AEA) Election of Officers ALASKA INDUSTRIAL DEVELOPMENT * AND EXPORT AUTHORITY {= ALASKA @@™ =ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA Tuesday, November 3, 1998 — 9:00 a.m. TELECONFERENCE Or, By Electronic Media at AIDEA — 480 W. Tudor Road 1. CALL TO ORDER Bjornstad 2: ROLL CALL (for Committee members) 3. PUBLIC ROLL CALL (for all others present) 4. PUBLIC COMMENT 5: AGENDA COMMENTS 6. APPROVAL OF MEETING MINUTES — June 15, 1998 Ue NEW BUSINESS A. Bradley Lake Bond Refunding il Griffith B. Status of Instability and Control Response ae Hickey C Budget Amendment/Adjustment $45,000 fo -- Repairs to the Nuka Diversion Story Dp} Authorization - HEA to Pursue Assumption of Communications if -- Bradley Lake Hydroelectric Project Story 8. COMMITTEE COMMENTS A. Next Meeting Date Bjornstad 9. ADJOURNMENT ALASKA INDUSTRIAL DEVELOPMENT =, » 4 AND EXPORT AUTHORITY / = ALASKA @m =ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA Tuesday, November 3, 1998 — 9:00 a.m. TELECONFERENCE Or, By Electronic Media at AIDEA — 480 W. Tudor Road 1. CALL TO ORDER Bjornstad 2. ROLL CALL (for Committee members) 3. PUBLIC ROLL CALL (for all others present) 4. PUBLIC COMMENT 5. AGENDA COMMENTS 6. APPROVAL OF MEETING MINUTES — June 15, 1998 Ts NEW BUSINESS A. Bradley Lake Bond Refunding Griffith B. Status of Instability and Control Response Project Hickey 8. COMMITTEE COMMENTS A. Next Meeting Date Bjornstad 9. ADJOURNMENT Extra Co re TELECONFERENCE INSTRUCTIONS Tuesday, November 3, 1998 — 9:00 a.m. To join the teleconference, please do the following: Dial 1-800-315-6338 Enter 3005 Enter # ALASKA INDUSTRIAL DEVELOPMENT > ¢ AND EXPORT AUTHORITY {= ALASKA ie =sENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA Tuesday, November 3, 1998 — 9:00 a.m. TELECONFERENCE Or, By Electronic Media at AIDEA — 480 W. Tudor Road 1. CALL TO ORDER Bjornstad 2. ROLL CALL (for Committee members) 3. PUBLIC ROLL CALL (for all others present) 4. PUBLIC COMMENT 5; AGENDA COMMENTS 6. APPROVAL OF MEETING MINUTES — June 15, 1998 ts NEW BUSINESS A. Bradley Lake Bond Refunding Griffith B. Status of Instability and Control Response Project Hickey 8. COMMITTEE COMMENTS A. Next Meeting Date Bjornstad 9. ADJOURNMENT BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES Chugach Electric Association —- Board Room 5601 Minnesota Drive Anchorage, Alaska Regular Meeting Monday, June 15, 1998 — 10:00 a.m. ie CALL TO ORDER Chairman Eugene Bjornstad called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:00 a.m. on Monday, June 15, 1998, in the Board Room of Chugach Electric Association, Anchorage, Alaska, to conduct the business of the Committee per the agenda and public notice. 2. ROLL CALL Roll was called by Diane Hillemeyer. The following members were present, and a quorum was established: Eugene Bjornstad, Chairman Chugach Electric Association Dave Calvert City of Seward Ray Morgan Matanuska Electric Association Mike Kelly (teleconference) Golden Valley Electric Association Don Stead Homer Electric Association Dennis McCrohan Alaska Energy Authority Meera Kohler Anchorage Municipal Light & Power 3. PUBLIC ROLL CALL Others Present: Brian Hickey, Chugach Electric Association Lee Thibert, Chugach Electric Association Ron Saxton, Ater Wynne Hewitt Dodson & Skerritt Tim McConnell, Anchorage Municipal Light & Power Dora Gropp, Chugach Electric Association Mike Yerkes, AEG&T John Cooley, Chugach Electric Association Bradley Lake Project Management Committee Meeting Meeting Minutes June 15, 1998 Page 2 Bob Hufman, AEG&T Stan Sieczkowski, Alaska Energy Authority 4. PUBLIC COMMENT There were no public comments. 5. AGENDA COMMENTS There being no additions or comments, the agenda was adopted by unanimous consent. 6. APPROVAL OF MEETING MINUTES - Friday, March 20, 1998 Brian Hickey noted on page 3 in the fourth paragraph “speed records” should be changed to “speed reference...” and in the fifth paragraph “drives the governors” should be changed to read “drives the deflectors...”. MOTION: Mr. Story moved to approve the meeting minutes of March 20, 1998, as amended above. Mr. Calvert seconded the motion. A voice vote was taken and the minutes were unanimously approved as amended. 7. NEW BUSINESS A. Status of Instability and Control Response Project — Hickey Brian Hickey stated that with the help of ML&P, Chugach, and Homer Electric, the data acquisition system has been designed. The parts arrived and it would be assembled in the next couple of weeks. The Woodward governor is up and data acquisition boards have been installed. We have received one deliverable from EPS defining the deflector power curves in the unit in the PSSE software and they are working on the other two deliverables. We believe they will be done by the July 31 deadline. We do anticipate doing unit testing in late July and are developing a test plan. In response to Mr. Saxton, Mr. Hickey stated that the range of alternatives is between the wholesale replacement of the governors to modification. He noted that this would come back to the PMC in September with the testing results. Mr. Hickey also noted that the costs of those alternatives are still in the range of what was discussed before. B. Update — Construction Punchlist — McCrohan Mr. McCrohan stated that he had asked the O&D Committee to review and provide the PMC with a status report. 8. COMMITTEE COMMENTS Bradley Lake Project Management Committee Meeting Meeting Minutes June 15, 1998 Page 3 There were no Committee member comments. A. Next Meeting Date It was the consensus of the Committee that the next meeting of the Bradley Lake Hydroelectric Project Management Committee be at the call of the Chair. 9. ADJOURNMENT MOTION: Ms. Kohler moved to adjourn. 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