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HomeMy WebLinkAboutBradley Lake PMC Meeting-Thurs., March 18, 2004 1PLEASE DELIVER TO THE FOLLOWING: Steve Haagenson Golden Valley Electric Association (907) 458-5951 Joe Griffith Chugach Electric Association (907) 562-6994 Bradley Janorschke Homer Electric Association (907) 235-3323 Wayne Carmony Matanuska Electric Association (907) 689-9368 Jim Posey Anchorage Municipal Light & Power (907) 263-5204 Dave Calvert City of Seward (907) 224-4085 Ron Saxton Ater Wynne LLP (503) 226-0079 eae Number of pages including cover sheet: wety in * * * Transmisoiun Result Report (MemoryTX) (Mar-.,» 2004 3:36PM) * * * 1) AIDEAZAEA 2): Date/Time: Mar-17. 2004 3:29PM File Page No. Mode Destination Peg (s) Result Not Sent 3706 Memory TX 919074585951 Pic 8 OK 95626994 OK 919072353323 OK 96899368 OK 92635204 OK 919072244085 OK 915032260079 OK n f error —E.1) Hang up or line fail —E.2 —.3) No answer —.4 PLEASE DELIVER TO THE FOLLOWING: Steve Haagenson Golden Valley Electric Association (907) 458-5951 Joe Griffith Chugach Electric Association (907) 562-6994 Bradley Janorschke Homer Electric Association (907) 235-3323 Wayne Carmony Matanuska Electric Association (907) 689-9368 Jim Posey Anchorage Municipal Light & Power = (907) 263-5204 Dave Calvert City of Seward (907) 224-4085 Ron Saxton Ater Wynne LLP (503) 226-0079 3 Number of pages including cover sheet: Please etd te following 2 “pepe to your DPAC Packet fom te necting. stoner. threw Yo BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING AGENDA Thursday, March 18, 2004, 10:00 a.m. (Via electronic media at AIDEA/AEA — 813 W. Northern Lights Boulevard) (Corner of Arctic and Northern Lights Boulevard) CALL TO ORDER Haagenson ROLL CALL (for Committee members) PUBLIC ROLL CALL (for all others present) PUBLIC COMMENT AGENDA COMMENTS APPROVAL OF MEETING MINUTES January 7, 2004 NEW BUSINESS A. Member and Alternate Letters B. Refund of prior year budget adjustment (continuation / clarification from last meeting) on Insurance Issues D. Approval of FY05 O&M Budget Cunningham [= Approval of Amended FY04 O&M Budget Cunningham Ee Acceptance of the FY03 Audited BPMC Financial Statements Stromberg COMMITTEE REPORTS / COMMENTS A. Operators Report B. Next Meeting Date Haagenson ADJOURNMENT Pp. | . * * * Transmis...n Result Report (MemoryTX) ( Mar...» 2004 10:21AM) * * * 1) AIDEAZAEA 2) Date/Time: Mar-12. 2004 10:20AM File Page No. Mode Destination Pg (s) Result Not Sent 3684 Memory TX 919074685951 P. 2 OK Reason for error E.1) Hang up or line fail —.2) Busy E.3) No answer E.4) No facsimile connection ‘Adal Energy Avtherty AIDE AWA Facsimile Transmittal TO: S feve Hea. 29en5 dr COMPANY: Faxt: (907 he XETA rm Prati Mat DATE: wRaeY pea AM Number of pages including cover pege: =< ‘Transmittal Contents: Pleo reves Ye eal of aggareal: Notice: This facsimile may contain confidential information that is being transmitted to and is intended only for the use of the recipient named above. Reading, disclosure, discussion, dissemination, distibution, or copying of this information by anyone other than the named recipient or his or her employees or agents is strictly prohibited. If you have. received this facsimile in error, please immediately destroy it and notify us by telephone at (907) 269-3000. 813 West Northern Lights Boulevard, Anchorage, Aiasica. $9503 907 / 269-3000 - FAX 907 / 269-3044 - Toll Free (ALASKA ONLY} 888 / 300-8534 + wwwaidea.cg Ss Spee SS SES ‘AIDE AAA Alaska Energy Authority Facsimile Transmittal of TO: Gu 40 Ve Ae waz. hs bv 7 COMPANY: ae _x£9 Fax #: ( 957) tS =D75/ O } r FROM: OS Flaicya_ oe DATE: 3-f/R-0¥ O35 ALY a Number of pages including cover page: =< Transmittal Contents: z eoer. veview VY Cat / “y y ad iy? Comments: Notice: This facsimile may contain confidential information that is being transmitted to and is intended only for the use of the recipient named above. Reading, disclosure, discussion, dissemination, distribution, or copying of this information by anyone other than the named recipient or his or her employees or agents is strictly prohibited. If you have received this facsimile in error, please immediately destroy it and notify us by telephone at (907) 269-3000. 813 West Northern Lights Boulevard.* Anchorage, Alaska 99503 907 / 269-3000 + FAX 907 / 269-3044 * Toll Free (ALASKA ONLY) 888 / 300-8534 * www.aidea.org State of Alaska Public Notice Page 1 of 1 Home Go Back : : ; Public Notices Online Public Notice Bradley Lake Project Management State of Alaska Committee Meeting Submitted by: Brenda Fuglestad/IDEA/DCED Date Submitted: 03/10/2004 11:43 AM Date Modified: Ak Admin Journal: [not printed] Attachments: No files attached Bradley Lake Project Management Committee Meeting Category: Public Notices Department: Community & Economic Development Publish Date: 03/12/2004 Location: Anchorage Coastal District: N/A Body of Notice: ALASKA ENERGY AUTHORITY/ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY Regular Meeting Public Notice Bradley Lake Project Management Committee Notice is hereby given that the Bradley Lake Project Management Committee will hold a regular meeting on Thursday, March 18, 2004, at 10:00 a.m. For additional information contact Steve Haagenson, Chairman. This meeting will be conducted by electronic media pursuant to AS 44.88.050(a) and AS 44.62.310 at the following location: Alaska Industrial Development and Export Authority’s Board Room, 813 W. Northern Lights Boulevard, Anchorage, Alaska; The public is invited to attend. The State of Alaska (AIDEA) complies with Title II of the Americans with Disabilities Act of 1990. Disabled persons requiring special modifications to participate should contact AIDEA staff at (907) 269-3000 to make arrangements. Revision History: 03/10/2004 11:43:17 AM by Brenda Fuglestad/IDEA/DCED/State/Alaska/US $$WebClient [Anon] Home Page Notices by: Department | Category | Publish Date http://notes4.state.ak.us/pn/pubnotic.nsf/cc52605f7c 156e7a8925672a0060a9 1 b/9f1529b43... 3/12/2004 Message Page | of 2 a>: Shauna Howell From: Brenda Applegate Sent: | Wednesday, March 10, 2004 11:57 AM To: Shauna Howell Ce: Mike_Cunningham @chugachelectric.com Subject: FW: Bradley Lake PMC Meeting Notice Please put the following items on the agenda: -Approval of the FY05 O&M Budget -Approval of Amended FY04 O&M Budget -Acceptance of the FY03 Audited BPMC Financial Statements Gary Stromberg, the BPMC auditor, will be presenting the financial statements. Could you please forward me the call in procedures and | can pass them on to Gary. He wasn't sure if he would attend, or call in. Linda will get copies of the FY05 budget to you for inclusion and I'll send you a separate e-mail with the FY04 Amended budget. Our auditors said they could have the bound financial statements to us by Monday. | know you said you would like to get the packets out Friday. Can we wait until Monday or would you rather do a separate mailing? Thanks! From: Mike Cunningham [mailto:Mike_Cunningham@chugachelectric.com] Sent: Wednesday, March 10, 2004 10:35 AM To: Brenda Applegate Cc: Connie Owens Subject: RE: Bradley Lake PMC Meeting Notice Can you give her the f/y 05 budget/ audit report and amended f/y04 budget as agenda items? Thanks. From: Brenda Applegate [mailto:bapplegate@aidea.org] Sent: Wednesday, March 10, 2004 10:36 AM To: Mike Cunningham; Linda MacMillan Subject: FW: Bradley Lake PMC Meeting Notice Importance: High FYI From: Shauna Howell Sent: Wednesday, March 10, 2004 10:35 AM To: Art Copoulos; Brenda Applegate; Dave Calvert; Dianne Hillemeyer; Jim Posey; Joe Griffith; Linda MacMillan; Rick Eckert; Ron Saxton; Steve Haagenson; Wayne Carmony Subject: Bradley Lake PMC Meeting Notice Importance: — High Please mark your calendars. The next Bradley Lake Project Management Committee meeting will be held on Thursday, March 18, 2004 at 10:00 a.m. in the AIDEA Board 3/10/2004 Message Page 2 of 2 . Room. Chair Haagenson has asked that each member provide a letter stating the current voting member and their alternate. Please fax this letter to my attention at fax number (907) 269-3044 this week for inclusion into the packets. Any other information you have or motions to be made need to be sent to me prior to the meeting at the same fax number or via email at showell @ aidea.org. Packets will be sent out either this Friday or the following Monday. If you have questions, please call me at (907) 269-3028. Thank you. --Shauna Howell 3/10/2004 BRADLEY LAKE PROJECT MANAGEMEN: COMMITTEE List of Representatives Representative Alternate Steve Haagenson UPAY A; Chairman ATS Ae Jim Posey —~“ Bob Day Vice Chairm 4\3 A \% Dave Calvert omy LA sob Griffith YK Pick Eckert Bob Zacharski Art Copoulos Karl Reiche Secretary/Treasurer Wayne D. Carmony Don Zoerb Wo or Ronald L. Saxton Larry Hittle Legal Counsel Effective Date: 01/09/03 Revised Date: 12/30/03 Utility Golden Valley Electric Association P.O. Box 71249 (758 Illinois) Fairbanks, Alaska 99707 Phone: 452-1151 Fax: 458-5951 shh@gvea.com Municipal Light & Power 1200 E. First Avenue Anchorage, Alaska 99501 Phone: 279-7671 Fax: 263-5204 PoseyJM @ci.anchorage.ak.us City of Seward P.O. Box 167 234 Fourth Avenue Seward, Alaska 99664 Phone: 224-4071 Fax: 224-4085 dcalvert @ cityofseward.net Chugach Electric Association 5601 Minnesota Drive Anchorage, Alaska 99518 Phone: 563-7494 Fax: 562-6994 joe_griffith @ chugachelectric.com Homer Electric Association 3977 Lake Street Homer, Alaska 99603 Phone: 235-8167 Fax: 235-3323 reckert@ homerelectric.com AIDEA/AEA 813 W. Northern Lights Boulevard Anchorage, Alaska 99503-2495 Phone: 269-3000 Fax: 269-3044 acopoulos @aidea.org Matanuska Electric Association P.O. Box 2929 (163 Industrial Way) Palmer, Alaska 99645-2929 Phone: 689-9211 Fax: 689-9368 prworrell@ matanuska.com AterWynne 222 S.W. Columbia, Suite 1800 Portland, Oregon 97201-6618 Ph: (503) 226-1191 Fax: 226-0079 rls@aterwynne.com Message Page 1 of 1 Shauna Howell From: Saxton, Susan [ssaxton@HomerElectric.com] Sent: Wednesday, March 10, 2004 12:03 PM To: Shauna Howell Subject: BPMC notice Hi, Shauna. | just received your fax on the BPMC meeting notice. | am in the process of creating a letter naming voting delegates. In the mean time, however, | wanted to let you know that we have a new general manager, Bradley J. Janorschke, who will be Homer Electric's representative. Brad's email address is bjanorschke @ homerelectric.com if you would prefer to email notices. If that is the case, I'd appreciate receiving a courtesy copy as he's not always at his desk. My email is ssaxton@homerelectric.com. Thanks, and I'll get that letter faxed to you this afternoon. Susan Saxton Homer Electric Association, Inc. 3/10/2004 — 4 * * ¥* Transmission Result Report (MemoryTX) ( Mar-iu. 2004 10:45AM) * * 3 . 1) AIDEA/AEA 2) Date/Time: Mar.10. 2004 10:38AM File Page No. Mode Destination Pg (s) Result Not Sent 3667 Memory TX 919074585951 P. 3 OK 95626994 OK 919072353323 OK 96899368 Ok 92635204 Ok 919072244085 OK 915032260079 OK oo no? E.1) Hang up or line fail —.2) Busy —.3) No answer E.4) No facsimile connection | 3 “Pages PLEASE DELIVER TO THE FOLLOWING: Steve Haagenson Golden Valley Electric Association (907) 458-5951 Joe Griffith Chugach Electric Association (907) 562-6994 Rick Eckert Homer Electric Association (907) 235-3323 Wayne Carmony Matanuska Electric Association (907) 689-9368 Jim Posey Anchorage Municipal Light & Power (907) 263-5204 Dave Calvert City of Seward (907) 224-4085 Ron Saxton Ater Wynne LLP (503) 226-0079 3 pajes PLEASE DELIVER TO THE FOLLOWING: Steve Haagenson Joe Griffith Rick Eckert Wayne Carmony Jim Posey Dave Calvert Ron Saxton Golden Valley Electric Association Chugach Electric Association Homer Electric Association Matanuska Electric Association Anchorage Municipal Light & Power City of Seward Ater Wynne LLP (907) 458-5951 (907) 562-6994 (907) 235-3323 (907) 689-9368 (907) 263-5204 (907) 224-4085 (503) 226-0079 Notification of Bradley Lake Project Management Committee Meeting A regular meeting is scheduled to be held on Thursday, March 18, 2004, at 10:00 a.m. at the Alaska Industrial Development and Export Authority’s Board Room. Packets for this meeting are scheduled to be sent out at a later date. Should you not be able to attend in person, directions for connecting to the meeting via phone will also be included in your packet. Please call Shauna at (907) 269-3028 with questions. h:\all\sdean\bradley\mtg notification fax cover.doc wo © 6 Shauna Howell From: Sent: To: Subject: Importance: Shauna Howell Wednesday, March 10, 2004 10:35 AM ‘Art Copoulos’; Brenda Applegate’; ‘Dave Calvert’; Dianne Hillemeyer’; ‘Jim Posey’; ‘Joe Griffith’; Linda MacMillan’; Rick Eckert’; "Ron Saxton’; Steve Haagenson’; Wayne Carmony’ Bradley Lake PMC Meeting Notice High Please mark your calendars. The next Bradley Lake Project Management Committee meeting will be held on Thursday, March 18, 2004 at 10:00 a.m. in the AIDEA Board Room. Chair Haagenson has asked that each member provide a letter stating the current voting member and their alternate. Please fax this letter to my attention at fax number (907) 269-3044 this week for inclusion into the packets. Any other information you have or motions to be made need to be sent to me prior to the meeting at the same fax number or via email at showell @ aidea.org. Packets will be sent out either this Friday or the following Monday. If you have questions, please call me at (907) 269-3028. Thank you. --Shauna Howell Serd_ Pockets hal Ad om tle ae AAAI - \) Mele (A xe) : litle Pre o | fol 3) {Os Dude deny Le Apyasley AOC Se chante - FY oS budge 5| 3 > ae Shauna Howell From: Steve Haagenson [shh @ gvea.COM] Sent: Monday, January 12, 2004 2:37 PM To: Shauna Howell Ce: Cheryl K. Swift Subject: Bradley Lake PMC Would you place the following item on the next agenda: Request each member provide a letter stating the current voting member and their alternate. Steven Haagenson President & CEO Golden Valley Electric Association, Inc. (907) 458-5866 shh@gvea.com Message Page 1 of 1 Shauna Howell From: Saxton, Susan [ssaxton@ HomerElectric.com] Sent: | Wednesday, January 14, 2004 3:57 PM To: Steve Haagenson; Art Copoulos; Brenda Applegate; Dave Calvert; Jim Posey; Joe Griffith; prworrell@ matanuska.com; Shauna Howell Subject: Employment Engagement TO: BPMC Members FR: Rick Eckert, Interim General Manager BY: Susan Saxton, Executive Assistant At last night's meeting, the Homer Electric board of directors voted unanimously to name Mr. Don Stead as project manager for the Bradley Lake Governor project effective January 16, 2004. Susan Saxton Homer Electric Association, Inc. 1/15/2004 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES } 813 W. Northern Lights Boulevard Anchorage, Alaska Wednesday, January 7, 2004 — 9:00 a.m. 1. CALL TO ORDER Chairman Steve Haagenson called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 9:00 a.m. on Wednesday, January 7, 2004, from the Alaska Industrial Development and Export Authority's Board Room, Anchorage, Alaska, to conduct the business of the Committee per the agenda and public notice. 2: ROLL CALL Roll was called by Shauna Howell. The following members were present: Steve Haagenson Golden Valley Electric Association Joe Griffith Chugach Electric Association Rick Eckert Homer Electric Association Don Zoerb Matanuska Electric Association (teleconference) Jim Posey Anchorage Municipal Light & Power Dave Calvert City of Seward Art Copoulos Alaska Energy Authority 3. PUBLIC ROLL CALL Shauna Howell, Alaska Energy Authority Brenda Applegate, Alaska Energy Authority Bob Day, Anchorage Municipal Light & Power Doug Hall, Anchorage Municipal Light & Power Bob Price, Anchorage Municipal Light & Power Rick Miller, Anchorage Municipal Light & Power Ed Ruebling, Anchorage Municipal Light & Power Jim Walker, Matanuska Electric Association (teleconference) Mike Cunningham, Chugach Electric Association (teleconference) John Cooley, Chugach Electric Association Brian Hickey, Chugach Electric Association Bob Zacharski, Homer Electric Association (teleconference) Bradley Lake PMC Meeting Minutes for January 7, 2004 Meeting 4. PUBLIC COMMENT There were no public comments. 5. AGENDA COMMENTS Budget adjustment/construction funds presentation from Mike Cunningham and Brenda Applegate to be added as item 7C. 6. APPROVAL OF MEETING MINUTES — October 21, 2003 Mr. Posey moved to approve the meeting minutes of October 21, 2003. Seconded by Mr. Calvert. A voice vote was taken, and the minutes were unanimously approved. 7A. VATech Budgetary Proposal —- Robert Day Bob Day gave a brief overview of the proposal and September 23, 2003 letter (attached). MOTION #04-1: Mr. Griffith moved that be it resolved that the BPMC authorize HEA to immediately proceed with contract negotiations with VA Tech to provide the services and equipment as described in their proposal of September 23, 2003, at a cost not to exceed $1.8 million. A decision to proceed or not to proceed with the work past the modeling phase will be allowed under this contract. The modeling phase is not to exceed $400,000. Proceed to obtain FERC approval of modifications. Seconded by Mr. Posey. A voice vote was taken, and the motion was unanimously approved. MOTION #04-2: Mr. Griffith moved that be it resolved that the BPMC requests HEA to enter into a continued employment arrangement with Don Stead in order to retain his knowledge and services for this governor modification project. Terms to be negotiated by HEA and Mr. Stead. Seconded by Mr. Calvert. A voice vote was taken, and the motion was unanimously approved. 7B. FERC Update Art Copoulos Mr. Copoulos noted that Ron Saxton and Chair Haagenson had met with FERC in Washington, D.C. FERC in D.C. said they will defer to Portland, and the Portland office said they would defer to local permit regulators/evaluators. Permits must be obtained from U.S. Fish and Wildlife, Fish and Game, Department of Natural Resources, and possibly the Corps. The only issue of concern is question of whether when the airstrip is closed, will we continue to allow public access to the Martin River Airstrip. Plans as initially discussed include abandoning the airstrip, put white Xs across it, but leave the airstrip in place. The plan is to not allow any public access. The airstrip will be in accordance with Federal air regulations. Page 2 of 4 Bradley Lake PMC Meeting Minutes for January 7, 2004 Meeting 7C. Budget Adjustment / Const. Funds Mike Cunningham & Brenda Applegate A handout was presented to the committee (attached). Brenda Applegate gave an overview, and also discussed the treatment of surplus amount and its effect on the FY04 contributions. MOTION #04-3: Mr. Griffith motioned to refund the June 2003 balance of — $2,013,381.00 in accordance with agreements and approve and bill in accordance with we Wv Budget Scenario B and to hold the money and pay out at a later date. Seconded by Mr. Posey. Mr. Zoerb asked to know the background of the $30,000.00 legal item included in the revision. Chair Haagenson stated the following estimated PMC legal costs: $5,000 for insurance issues, $5,000 for FERC licensing, $5,000 for meeting attendance, $5,000 for construction contracting, $10,000 for legislative review of Bradley transfer to utilities including bond review and analysis. The $30,000.00 is a SWAG and Chair Haagenson will discuss with Ron Saxton to verify number. MEA expressed its reservations about AterWynne firm representing the PMC given its adverse posture to MEA’s interest in a number of other venues. Mr. Zoerb stated that MEA would be comfortable with the budget revision if not for the $30,000.00 legal item. Absent that, MEA will have a problem concurring to the motion if it includes a further financial commitment to the firm that is adverse to them in other venues. Chair Haagenson stated that what the group was voting on is a budget adjustment, not who the vendor should be. Mr. Zoerb noted that the budget adjustment includes an additional $30,000.00 commitment to the firm that they object to, and because of the $30,000.00 item, they will have to vote against the budget revision. A roll call vote was taken on Motion #04-3: Utility Vote City of Seward Yes Matanuska Electric Association No Chugach Electric Association Yes Homer Electric Association Yes Golden Valley Electric Association Yes Anchorage Municipal Light & Power Yes Alaska Energy Authority Yes Mr. Zoerb requests that the reason for voting against the motion be recorded in the minutes. “Our objection is based solely on the inclusion of an additional $30,000.00 commitment to the AterWynne law firm, based on the conflict of interest that MEA perceives this law firm to have.” Page 3 of 4 Bradley Lake PMC Meeting Minutes for January 7, 2004 Meeting 8A. Next Meeting Date Chair Haagenson The next meeting will be at the Call of the Chair. 8B. Operators Report Bob Zacharski Mr. Zacharski reported that they have been operating with one operator short for the last nine months. In November they certified a third operator and were fully staffed. One month later, they had another lost time injury with one of the three operators at Bradley. This operator was the electrician and that put them behind on the PMs. In two weeks they will be getting another electrician from the Nikiski power plant and hope to clean up all the outstanding PMs on the electrical side. The runner repairs have been completed. An ongoing document control effort in conjunction with Arts office to categorize and catalog the drawings and publications associated with Bradley. Lastly, he stated that VA Tech visited the site two weeks ago to take a first hand look at the governor and actuator cabinets. 8C. Insurance/Risk Assessment Scope of Work/ Signed __ Chair Haagenson Chair Haagenson stated that he had completed and mailed the Application for Directors & Officers Liability Insurance for the Bradley Lake Project Management Committee. Chair Haagenson will send a letter changing the answer to question #10 under the Organization Information section to clarify and state that AEA, the owning organization is a State/government entity. Chair Haagenson noted that he had two action items — the legal fix on construction funds, as well as the D&O questionnaire issue. 9. ADJOURNMENT The meeting was adjourned at 10:15 a.m. BY: Steve Haagenson, Chairman ATTEST: Alaska Energy Authority, Secretary Page 4 of 4 E99-4 MUNICIPAL LIGHT & POWER December 10, 2003 y yc Steve Haagenson p EU “ 6 2003 Chairman Brdley Lake Project Management Committee Golden Valley Electtie Association 0, Box 7 CG ’ Paichenks, Alaska 99707 i Polding Company Dear Steve: On December 9% at 10 AM the Governor Subcommittee met in Anchorage. At the meeting the governor replacement project (DCS) and the new proposal from VA Tech was discussed with a representative from VA Tech. A copy of the VA Tech proposal is attached to this lettcr. In addition to the actual tcplacement of the Governor controls at Bradley Lake VA Tech ptoposes to model the turbine and its performance characteristics ptovide some modifications to the deflectors and to provide shielding of the jet streams, Fort a complete description of the VA Tech proposal please sec the attached descriptions. The Governor subcommittee has carefully reviewed the proposal and the subcommittce unanimously recommends that the BPMC authorize Homet Electric Association (HEA) to immediately proceed with contract negotiations with VA Tech to provide the services and equipment described in theit proposal of September 23, 2003. The subcommittce is of the opinion that this work in addition to the DCS work will substantially mitigate the problems we experience with the Bradley Lake system. The budgetary ptice for this work is $1.8 Million; however, VA Tech has indicated a potential reduction in price if the contract is negotiated by the end of January, ‘The first $400k will be utilized to build a model to prove out the ideas expressed by the VA Tech proposal. At the completion of the modeling phase further input will be provided from the subcommittee to determine the exact nature of the changes to the plant system necessary to provide the needed imptovements. If the modeling does not prove out the ideas the BPMC could cnd the project with out further obligation. The subcommittee is confident that the modeling will prove the viability of the fixes proposed and implementing the same will result in improvements to the Bradley Lake system that will provide substantial economic payback through improving the operational flexibility of the Plant and increasing the availably of the plant to tespond to system disturbanccs. The subcommittee is also concerned about the continuity of this project with the imminent departure of Don Stead from HEA. Don has been a primary force in the governor activity to date and the committee feels much could be lost is Don were to be totally absent from the temainder of this project. In addition to recommending the approval of the proposal from VA Tech the committee recommends that the BPMC authorize HEA to execute a contract with Mr. Stead to provide future consultative sctvices to the Subcommittee and to the represcntatives of HEA as necessary so as to facilitate the successful completion of this large project. A contract for professional sctvices not to excecd $40k should be adequate. The committee respectfully requests that the BPMC convene as soon as possible to act on the tequests of the subcomumittce. Sincetcly, Chairman Bradicy Governor Subcommittee 1200 East First Avenuc * Anchorage. Alaska * 99501-1685 Phone 907.279.7671 » Fax 907.263.5862 unwarmlandn com 600/200'd + egs-1 19698Sr206 UO}JEISIUIWPY Y3RAV—WO1y Weg”: BN £0-9|-98q F-653 P.003/009 T-553 9074585951 09:47am Dec-16-03 From-GVEA Administration 1 — BAAS aay le SSA SSIES CRLIAPATIAT SE CPCS, LAST SET HEAD Hisa Fe cureur 90170 HP ran 300 cea GIL ?RESORE 657 PS) \ N Vien VLA RY Ponty: wuhe mn 4 NEW PRE CORR | WLLL PROTECT CON RCOF JE” OVLDER 4EYS SIVICER SERVOYOTCR - LEVER - FIXING FARTS - EL. FEE) 3Aacx - MECH. FEED 632% CCN. PINS PARTS SCCORD(INS OFFER MARKED IN 2ED OSTON FROTECT (ON CF OFFERED PARTS [NCLJCED TYRE WERT. PELIGN MURBISE TYPICAL ed User me on ee oo ae ee ae £ ee (co fede c r | locien sastee Seane | 10,843, 713 222]at z . oa 3 ie VAUEGE! VA TECH VOEST MCE Corp. September 25, 2003 Homer Electric Association, Inc. 3977 Lake Street Homer, Alaska 99603 Attn: Don Stead Engineering Manager Subject: Bradley Lake Jet Divider versus Deflector Dear Don, in addition to our budgetary proposal sent earlier this week we would like to provide the following information: Bradley Lake — Existing Sane as per Fuji drawing no. Fipesiee: / EN fi. > ~ ~ BS S 2 ” ~~ WN hs ‘ aS MNO pa yt i rr} 4 of ‘ aK SS i “TNS ee | a VA TECH VOEST MCE Corp. Tol; (+1/704) 043-4343 VA TECH HYDRO Universty Research Park Fax: (44/704) 949-0200 Five Resource Squaro mal ntact@vatechhy¢ro.com VOEST (FY Ly Tr 10715 David Taylor Drive Homepage: ww.vatechhydro-tisa.com © mce AT ert NC 26262, USA File: Explanaton_030925.doc 99-1 B600/r00'd esg-1 lsesespzo6 UO!}eJ38/UIupy Y3AQ-UOly —WEJy:g9 © gQ~g| -28q VAUEGH VA TECH VOEST MCE Corp. Basic sketch that shows how the existing deflector and the proposed jet divider are working. If the deflector is in operation the complete jet gets pushed to a bigger diameter D, what causes jet interferences and efficiency losses. Original deflector _ Cut-in-deflector — D, too large -> jet-interference : . D, correct -> no jet-Interference This information is proprietary and for your internal use only. It has to be kept strictly confidential. We trust that this information will not be shared with any third party. If you have any questions please don't hesitate to contact us. Kind regards, Oswin Moeller Head of Automation, Control & Protection (ACP) VA TECH HYDRO @)»-ccs: ~ww SAT ES9-J 600/900'd + eSS-1 (96S8Sr206 UO!ZEAISIUIUPY YIAV—WO1Y = WERH?B0 §=—-EQ-9 |-28q VAUEGK! VA TEGH VOEST MCE Corp. September 23, 2003 Homer Electric Association, Inc. 3977 Lake Street Homer, Alaska 99603 Attn: Don Stead Engineering Manager Subject: Bradley Lake Budgetary Proposal for Necessary Pelton Turbine Modifications Dear Don, During the preparation and modification of our Bradley Lake Governor DCS Proposal and our meetings in Homer and Anchorage, It became obvious for VA TECH that a substantial improvement of the governor frequency control performance in deflector mode (power vs. deflector servomotor stroke curve) and small signal disturbances (4-6 MW power swings) can be achieved only in conjunction with modifications to the Pelton Turbines and in particular, the Deflectors and appurtenant equipment. VA TEGCH's Center of Competence for Pelton Turbines in Switzerland have studied the Fujl turbine drawings and Model Test Reports supplied by HEA and have recommended a “Jet Divider” vs. existing “Deflector” (cuts away part of the jet and leaves the remaining part of the jet more or less undisturbed) and subsequent changes to the stroke which requires a new “Divider Servomotor and very likely a “Protection Roof” which Is attached to each nozzle and reflects the water which Is deflected by the preceding jet divider. The enclosed VA TECH Drawing 0 841 713 222, Divider System Assembly clearly Indicates the changes (In red) that are required to the Bradley Lake Turbines. The proposed steps and associated budgetary cost in providing these proposed modifications will be: 1. Homologous Model Test 41.1. Build a homologous model (deflector, nozzle hat, nozzle needle, runner and turbine housing homologous to Bradley Lake) and perform a ‘model test In our Test Laboratory In Switzerland to: a.) Measure runner torque (power) fluctuations at various deflector positions and verify model test results with experlenced torque fluctuations in the field. HEA will provide the existing field test results. b.) Observation and analysis of the jet interference and water flow inside the turbine housing during deflector operation. VA TECH VOEST MCE Corp, Tol: (41/704) 943-4343 HY! Univorsity Resosrch Park Fax: (41/704) 943-0200 VA ee DRO Five Resource Square E-mail: contact@vatechhydro.com 10715 David Ti “Drive Wobsite: vwaww.vatechhydro-use.com Omée@RVSAL sae" Chariatla, NO 28262, USA 69-4 600/900'd + esg-1 1s698Sp206 UO!ZBAIS|UlWpY YIAV—UO1y —- WEY: BD €0-91-28q VATLEGE] VA TECH VOEST MCE Corp. ¢.) Design and install the VA TECH “Jet divider’, “protection roof” and other modified components in the mode! based on the above analysis and observations and perform the identical tests as above to prove the expected results. d.) Thoroughly document and submit the results of this testing to HEA for final approval to design the final prototype components based on these test results. Proposed Scope of Supply 2. Jet Divider, Divider Servomotor and Servomotor Links 2.1 2.2 Due to the new design of the VA TECH jet divider, the linear stroke of the servomotor will increase by approximately 50%, therefore the old deflector servomotor and the linkage to the existing deflector operating mechanism will require replacement. As the oll flow will also increase, the piping from the governor oi! accumulator to the actuator cabinet and to the new jet divider servomotor will require replacement (larger diameter due to Increased volume). A third governor oil pump will be required on the existing governor sump tank for the increased volume required (2 lead pumps and 1lag pump). ~ Each unif (two units total) will be equipped with the following new main cat Oey coated according to their individual requirements: * 1 set (qty. 6) of jet dividers including all necessary pins and keys as shown on the attached drawing * 1 jet divider servomotor Including all necessary installation material (linkage to existing operating mechanism, bolts, nuts, pins, keys, anchors, etc) * 1 governor oll pump including motor, motor starter and all necessary Installation material « 14 set of piping material (stainless steel) to connect the additional governor oll pump to the existing system * 1 set of piping material (stainless steel) to connect the deflector distributing valve to the new jet divider servomotor « 1 set of piping material (stainless steel) to connect the deflector distributing valve to the existing governor oil accumulator, 3. Protection Roof eG9-4 3.1 800/200'd = ESS~1 ($6S8Sr206 To prevent deflected water splashing back on the runner buckets VA TECH will design a protection roof based on the model test results. A typical layout Is shown on the enclosed drawing. ¢ VATECH will provide all necessary Installation material to attach the new protection shield to the existing needle housing. Page 2 of 4 UO! }BISIUIMpY YRAH=WOy weap: g0 £0-9 1-289 VATEGH] VA TECH VOEST MCE Corp. 4. Site Erection Work VA TECH will remove and Install all mechanical, hydraulle (including piping) and electrical components as stated above. HEA will be responsible to dispose of any components no longer required, After installation, connection and dry testing of the components, VA TECH'’s Site Supervisor and Commissloning Engineer, assisted by HEA will make all necessary checks and performance tests. For the price calculation we assumed the following: Both units will be modified without Interruption. The work will be performed in parallel! with the governor replacement and coordinated by one VA TECH supervisor. VA TECH personnel wil! use the existing accommodation and cooking facilities at slte and HEA will provide Air Transportation in and out of Bradley Lake as provided In the Governor DCS Contract. VA TECH will use stainless steel piping to avold plekling. Each plpe replaced will be pressure tested at 1.3 times operating pressure and visually inspected for leakage. There is no lead based paint, which requires abatement and disposal. 5. Engineering Work Homologous Model test preparation, execution and report. Mechanical design of all modified and/or new components. Detalled site work procedures. Submittals of all documents. Workshop tests. Commissioning and performance tests, Final documentation. Budgetary Price Total for Item 1 - 5 for two units, $ 1,800,000.00 Our budgetary price is FOB job site and includes all necessary customs clearances and insurances. This price is based on the assumption that the order execution will be done in - parallel with the governor contract. Our price does not include sales and use taxes. €G9-4 600/800°d Page 3 of 4 egg-1 |gesegyz08 vo!yes38!uiupy y3AQ-woly — wegy:gg 0-91-98 VALEGCE VA TECH VOEST MCE Corp. Dellvery Time «© The delivery time for the model test results will be 5 months after contract award. « The delivery time for the new components will be 8-9 months after release of model test results. Payment « 30% after submittal of model test results « 50% after delivery © 10% after Installation and fleid-testing of the first unit * 10% after installation and field-testing of the second unit Warran' Our warranty ends 12 months after commissioning but not later than 24 months after delivery. Validity Our budgetary offer Is valid until Dec 31, 2003. if you have any questions please don’t hesitate to contact us. Nn Moeller, Head of Automation, Control & Protection {ACGP) Attachments: Jat Divider Assembly drawing no. 1841-713-222 Rev. A Page 4 of 4 eS3-4 — B00/600'd + eg9-L 196989206 UO!JEISIUIUpY Y3A9-WO1y —WEBH?BD — EN-9 | -98q Summary of FY04 proposed budget adjustments Scenario A-surplus not refunded Proposed O&M additions (see detail schedule) Adjustment for change in surplus FY03 actual vs projected-unaudited Net decrease-FY04 contributions 212,702.72 Chugach Electric Muni of Anch. AEG&T GVEA Seward Total 30.40% 25.90% 25.80% 16.90% 1.00% 100.00% 124,700.80 106,241.80 105,831.60 69,323.80 4,102.00 410,200.00 (337,403.52) _ (287,458.92) (286,349.04) (187,569.72) (11,098.80) _(1,109,880.00) 181,217.12) (180,517.44) (118,245.92 6,996.80 699,680.00 ee OOOO OE Scenario B-surplus refunded Proposed O&M additions (see detail schedule) Adjustment for not using FY03 surplus to fund FY04 budget Net increase-FY04 contributions Refund-FY03 surplus-unaudited Net effect 124,700.80 274,664.30 399,365.10 (612,067.82) (212,702.72) 106,241.80 105,831.60 69,323.80 4,102.00 410,200.00 234,006.76 233,103.26 152,691.67 9,035.01 903,501.00 340,248.56 338,934.86 222,015.47 13,137.01 —1,313,701.00 (621,465.68) (519,452.30) (340,261.39) (20,133.81) (2,013,381.00) (181,217.12) (180,517.44) (118,245.92) (6,996.80) _(699,680.00) Scenario A Bradley Lake FY04 Amended Budget Summary Chugach Electric Muni of Anch. AEG&T GVEA Seward Total 30.40% 25.90% 25.80% 16.90% 1.00% 100.00% Expenses Budget additions 90,500.80 77,104.30 76,806.60 50,311.30 2,977.00 297,700.00 Increase for Governor 34,200.00 29,137.50 29,025.00 19,012.50 1,125.00 112,500.00 (assumed all in FY04) FY04 Budget Additions 124,700.80 106,241.80 105,831.60 69,323.80 4,102.00 410,200.00 Effect of Actual Surplus vs projected used FY03 Projected Surplus used in FY04 budget 274,664.30 234,006.76 233,103.26 152,691.67 9,035.01 903,501.00 FY03 Actual Surplus (see below) (612,067.82) __ (521,465.68) __ (519,452.30) _ (340,261.39) _ (20,133.81) _(2,013,381.00) Total adjustment for change in surplus (337,403.52) (287,458.92) (286,349.04) (187,569.72) (11,098.80) (1,109,880.00) Net decrease-FY04 Contributions $ (212,702.72) $ (181,217.12) $ (180,517.44) $ (118,245.92) $ (6,996.80) $ (699,680.00) Assumptions -Governor work all in FY04-out of R&C fund Payback over 4 year period -FY03 surplus is used for FY04 O&M-unaudited-may not be final -Effect on interest earnings not considered for this analysis When budget adjustments are finalized, actual contributions will be calculated with effect on interest earnings included in calculation. FY04 Budget adjustments-Scenerio A FERC Acct Description $ amount Explanation 544 Repair projects-runner $ 80,000.00 Unexpected repairs and relays 540 FERC Land use fees $ 33,000.00 Rates billed by FERC in prior year for prior years incorrect 543 HEA O&M-Maintenance $ 53,700.00 Increase up to contract amount 920 PMC Legal $ 30,000.00 924 Insurance $ 90,000.00 Increased actual costs capital Snow Machines (2) $ 11,000.00 O&D committee recommendation “$297,700.00 capital Governor $450,000.00 current budget=$1,050,000 revised budget $1,500,000 Scenario B Bradley Lake FY04 Amended Budget Summary Chugach Electric Muni of Anch. AEG&T GVEA Seward Total 30.40% 25.90% 25.80% 16.90% 1.00% 100.00% Expenses Budget additions $ 90,500.80 $ 77,104.30 $ 76,806.60 $ 50,311.30 $ 2,977.00 $ 297,700.00 Increase for Governor 34,200.00 29,137.50 29,025.00 19,012.50 1,125.00 112,500.00 (assumed all in FY04) FY04 Budget Adjustments 124,700.80 106,241.80 105,831.60 69,323.80 4,102.00 410,200.00 FY04 projected surplus 274,664.30 234,006.76 233,103.26 152,691.67 9,035.01 903,501.00 Total adjustment for change in surplus 274,664.30 234,006.76 233,103.26 152,691.67 9,035.01 903,501.00 Net increase in contributions needed $ 399,365.10 $ 340,248.56 $ 338,934.86 $ 222,015.47 $ 13,137.01 $ 1,313,701.00 Refund of actual surplus through 6/03 (see below) (612,067.82) (521,465.68) (519,452.30) (340,261.39) (20,133.81) $ (2,013,381.00) Net increase (decrease)-FY04 contributions $ (212,702.72) $ (181,217.12) $ (180,517.44) $ (118,245.92) $ (6,996.80) $ (699,680.00) |Assumptions -Governor work all in FY04-out of R&C fund Payback over 4 year period -FY03 surplus is refunded-unaudited-may not be final -Effect on interest earnings not considered for this analysis When budget adjustments are finalized, actual contributions will be calculated with effect on interest earnings included in calculation. -FY03 final numbers are unaudited-FY3 surplus may not be final FY04 Budget adjustments-Scenario B FERC Acct Description $ amount Explanation 544 Repair projects-runner $ 80,000.00 Unexpected repairs and relays 540 FERC Land use fees $ 33,000.00 Rates billed by FERC in prior year for prior years incorrect 543 HEA O&M-Maintenance $ 53,700.00 Increased up to HEA contract amount 920 PMC Legal $ 30,000.00 924 Insurance $ 90,000.00 Increased actual costs capital Snow Machines $ 11,000.00 O&D committee recommendation “$297,700.00 capital Governor $450,000.00 current budget=$1,050,000 revised budget $1,500,000 ALASKA ENERGY AUTHORITY BRADLEY LAKE FINAL CONSTRUCTION LIST REPORT OF ACTIVITY ITEM Fish Study/Mitigation-complete Fish Water SCADA - Const-complete Moose Mitigation Fund - complete Diversion Tunnel - complete Powerhouse Floor/Paint - complete (A) SETTLEMENT AGREEMENT PUNCHLIST 220,000.00 100,000.00 185,215.00 5,000.00 5,000.00 (B) Adjustment/ Reallocation (17,217) 15,639 575 (693), (1,583) (c) (A) + (B) Revised Estimate 202,782.90 115,639.15 185,790 4,307 3,417 (D) Payments thru 11-30-03 202,782.90 115,639.15 185,790.16 4,307.45 3,417.07 (C) - (D) 11-30-03 Estimate to Complete 10 1 12 13 14 15 16 17 18 19 20 21 23 24 Equipment - complete Misc Engineering -complete Fishwater Bypass Cleanup - complete ADIT Access Modification - complete Building Roof Modification - complete Airfield Road Access - complete Cold Weather Modification-complete Rip Rap Upstream Face of Left Dam - complete Approved Workorders unfinished at 3/96 B019 Parapit Wall/Gate complete B021 Fishwater Diverstion complete Penstock Condensation - complete Governor Instability Study System Analysis Equip at SVCs - complete Contingency (Unallocated funding) Transfer trip schemes - Old Invoices - complete AEA Operating Costs complete Brown & Root Retainage complete Interest on Retainage domplets Previously approved punchlist Control System Modifications 15,000.00 40,000.00 325,000.00 18,000.00 45,000.00 35,000.00 5,000.00 175,000.00 155,244.00 (6,879) (40,000) (12,931) (4,761) 22,038 (5,416) (4,705) (91,010) 3,740 312,069 13,239 67,038 29,584 295 83,990 158,984 8,121.48 312,069.23 13,238.77 67,038.14 29,584.46 294.53 83,989.85 158,983.83 145,000.00 1,021,400 | 1,166,400 812,676.30 | 353,723.70 150,000.00 (138,770) 11,230 11,230.40 - 290,844.00 426,068 716,912 - 716,912.40 170,500.00 (15,275) 155,225 155,225.36 - 70,000.00 (14,464) 55,536 55,535.82 - 102,958.00 (102,958) - : - 100,000.00 (100,000) - - - 2,502,761 787,800 | 3,290,561 2,219,924.90 | 1,070,636.10 970,480.00 (787,800) 182,680 - 182,680.00 3,473,241 -__| 3,473,241 2,219,924.90 | 1,253,316.10 H:\ALL\ELAINE\BRADLEY\Bradley Construction\BLCONST-11-30-03 - Punchlist