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HomeMy WebLinkAboutBradley Lake PMC Meeting Wednesday, October 7,2009 2BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES REGULAR MEETING (via electronic media at the Alaska Energy Authority’s Board Room) Anchorage, Alaska October 7, 2009 - 10:00 a.m. a: CALL TO ORDER Chair Evans called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:01 a.m. on Wednesday, October 7, 2009, from the AEA office, 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: Bob Day Homer Electric Association Brad Evans Chugach Electric Association Brian Newton Golden Valley Electric Association (teleconference) Jim Posey Anchorage Municipal Light and Power (teleconference) Bryan Carey Alaska Energy Authority Joe Griffith Matanuska Electric Association (teleconference) Jeff Estes City of Seward 3. PUBLIC ROLL CALL Shauna Howell, AEA Mike Cunningham, CEA (teleconference) Don Zoerb, MEA (teleconference) Gary Kuhn, MEA (teleconference) Kirk Gibson, AterWynne (teleconference) Shelby Weems, AEA Linda MacMillan, AEA Bob Price, AML&P Jim Kingrey, HEA 4. PUBLIC COMMENT There were no public comments. §. AGENDA COMMENTS / MOTION FOR APPROVAL There were no agenda comments. Page 1 of 3 BPMC Minutes 10/07/09 6. APPROVAL OF MEETING MINUTES — June 10, 2009 MOTION: Mr. Day moved to approve the minutes of the June 10, 2009 meeting. Seconded by Mr. Carey. On page 4 of 4, frequency in the divider mode should read 24 hertz. In the 2 paragraph on page 4 of 4, its not ‘throw up volts,” it should read ‘throw out bolts’. On page 5 of 5, ...they wrote it down $25,000 to $100,000. Insert ‘work involved’. Delete the next sentence. The meeting minutes were unanimously approved as amended. ub NEW BUSINESS 7A. BPMC BUDGET POLICY Operations and Maintenance: Bradley Project Management Committee (BPMC) approval for budget changes will be required if the projected budget surplus or deficit is greater than $250,000. Variation among the individual line items of the budget will not require BPMC approval. Renewal and Contingency Fund Projects: Capital projects approved by the BPMC and exceeding $500,000 will be funded out of the Renewal and Contingency Fund (R&C Fund) which provides for repayment to the fund over a four year period. Other capital projects will be considered part of the Operations and Maintenance budget unless otherwise directed by the Operations and Development (O&D) and Budget Subcommittees and approved by the BPMC. BPMC approval, based on O&D Subcommittee recommendations, will be required for a R&C Fund project increase the lesser of 15% of project cost or $250,000 and above. MOTION: Mr. Day moved to adopt the above stated BPMC Budget Policy. Seconded by Mr. Carey. A roll call vote was taken: City of Seward: Yes Matanuska Electric Association: Yes Chugach Electric Association: Yes Homer Electric Association: Yes Golden Valley Electric Association: Yes Anchorage Municipal Light & Power: Yes Alaska Energy Authority: Yes The motion unanimously passed. 8. COMMITTEE REPORTS / COMMENTS 8A. Operators Report Mr. Day reported that during the generator inspection, two bolts and their respective locking tabs were missing from the upper generator stator fan shroud cover in the west quadrant. Mr. Day gave a presentation to the group. Page 2 of 3 BPMC Minutes 10/07/09 Comments Chair Evans: . Asked the status of the breaker failure scheme; Mr. Day stated that because both Diamond Ridge and Soldotna relaying were rewired, causing the scheme changes, which may have corrected the problem. . What is the status of the gatehouse closing as based on failure of the power supply. Mr. Day stated it’s at the top of the list as they have performed testing and now are aware of the mechanism of the failure mode, which should be corrected this month. . What is the schedule for the fish water release issue: Mr. Carey stated that ADF&G and FWS have developed a draft proposal; mitigation cost may be $20,000; time for engineering support work and flow regimes with FERC may be another $15,000, totaling probably less than $50,000. We should be able to present a business plan by end of year. 8B. Next Meeting Date The next meeting will be at the call of the Chair. 9. ADJOURNMENT Meeting adjourned at 10:25 a.m. BY: S. Wawel Zor1e ad Ev Chair ATTEST: Bx i Lat) 2010 Alaska Energy Authosity, Secretary Page 3 of 3 BPMC Minutes 10/07/09 “IDEN. tial oy Alaska Industrial Development Ke Export Authority BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING AGENDA Wednesday, October 7, 2009 — 10:00 a.m. (via electronic media at the Alaska Energy Authority’s Board Room — 813 West Northern Lights Boulevard, Anchorage, AK) a CALL TO ORDER Evans 73 ROLL CALL (for Committee members) a PUBLIC ROLL CALL (for all others present) 4. PUBLIC COMMENT 5. AGENDA COMMENTS / MOTION FOR APPROVAL 6. APPROVAL OF MEETING MINUTES June 10, 2009 fe NEW BUSINESS A. BPMC Budget Policy (ACTION ITEM — tabled from last meeting) Cunningham 8. COMMITTEE REPORTS / COMMENTS A. Operators Report Day B. Next Meeting Date Evans 9. ADJOURNMENT 813 West Northern Lights Boulevard * Anchorage, Alaska 99503-2495 www.aidea.org * 907/771-3000 * FAX 907/771-3044 ® Toll Free (Alaska Only) 888/300-8534 * www.akenergyauthority.org Bob Dey BPMC Bradley Lake Hydro Plant Report August 19 to September 29, 2009 As compiled from Jim Kingrey’s bi-weekly reports Plant Production ¢ Power Produced = 112,750 MW-hours « Hydraulic Usage = approximately 115,000 AC-ft ¢ Lake Level = 1174.1 ft Events / Emergency Issues (cag OPO . * No safety or environmental issues to report, .MEA Board of Directors toured Bradley August 5". An aide to Senator Murkowski (Kelli Donnelly) toured Bradley Lake August 7”. 3 HEA Board of Directors toured the plant on 9/17/09 The Speaker of the Alaska House of Representatives Mike Chenault and Alaska State Senator Tom Wagoner toured the plant on 9/18/09. * Senate President Gary Stevens and possibly Paul Seaton will tour Bradley November 16" or 18th Significant Work / Activities Performed « Worked on Nuka Diversion repairs on 8/31, pumped basins and found the diversion is full of glacier silt. A large amount of glacier silt has filled the inlet basin and has covered the pipes for the gates by approximately 12 inches. Working on developing plans to continue with repairs. . Penstock Drain Cleaning was started. The pipe cleaner stopped moving and is stuck in the lower left Penstock Drain Pipe at approximately 380 ft into the pipe. Pipe cleaner will be retrieved and will continue to work on pipe after outage is complete. ¢ Completed Unit 1 Annual Outage. New turbine runner is in excellent condition and still looks new. No wear or damage was found. Performed dye penetrate testing on every fourth bucket root with no cracks found. Commenced Unit 2 Annual Outage on 9/15/09. Unit 2 is scheduled to return to service on 9/22/09. Completed Power Tunnel and Diversion Tunnel Gate Testing on 9/15/09. Completed Unit 2 Annual Outage. New turbine runner is in excellent condition and still looks new. No wear or damage was found. uring the Generator Inspection, 2 bolts and their respective locking tabs were missing from the upper generator stator fan shroud cover in the west quadrant. Both of the bolts and one of the locking tabs were found in the generator compartment. We were unable to locate the other locking tab. The generator stator covers and other covers were removed and numerous, very thorough inspection were performed of the generator rotor, stator, bus connections, supply and exhaust ducts, and the compartments, but the locking tab could not be found. The O&D Committee decided on a teleconference to return the unit to service. Unit 2 was returned to service at 9:30 am on 9/26/09. * ABB completed inspection and testing on the Gas Insulated Substation. The Substation was determined to be in excellent condition and passed all testing. 4 sections of bus needed slight amounts of SF6 gas added. No leaks could be found. Diamond Ridge Line relay replacement was completed. New Cathodic Protection Rectifiers were installed in the Power Tunnel and Diversion Tunnel Gate Houses. The new rectifiers were placed in service and are being monitored for proper operation. Nuka Diversion repair work is scheduled for Monday 10/5/09 (rescheduled for Friday October 9") . Bradley/ARemer/Weekly Reports Procler hale Pad My. (O0- #-0F if Stet @ 10:0 AM © JEA End @ /0:k5 An gebem Mele eae ol. eek i Fre a wildlife - fe.King @ Hab | ee te ts pe | Bleverless fle 450, 6 | acieaean Ned Mey Phe Coll 4} “He Chair BRADLEY PMC VOTING DATE: lof F/ 04 Agenda Item No. HER a A ; “Doll Col Bed pr Volc ee a ete a aay CITY OF SEWARD 01% a" ie MATANUSKA ELEC Assoc. 14% [ZT CHUGACH ELEC ASSOC 30% EE wt HOMER ELEC ASSOC mm FEE wA GOLDEN VAL ELEC ASSOC 17% “a Ze MUNI LIGHT & POWER 20% EG He ALASKA ENERGY AUTHORITY WE 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) 4) 5) 6) 7) 8) 9) Establishment of FY estimated annual 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. YOTING METHOD C: Unanimous vote by all (including AEA) VOTING METHOD D: Majority vote (including AEA) Election of Officers Bradley Lake PROJECT MANAGEMENT COMMITTEE MEETING Oc- bet, 2OD4 (Date) FEA eek Rowe (Location) PLEASE SIGN IN [No. NAME REPRESENTING | ea Howel/ ee ta eee yee 6VEA [3 | SG Foure SEwne\ 4 0 : Pas HER Sule 206 hi Wn I Lt Fr fs | buted unew Hoey Pele ob : Ge vile Kv | s | Grey Kuhn me en ea i Tent beg Ua 12 Vag 14 | 15 | 16 17 | 18 | 19 | ame || 2h 22 92Q2\IT9884 - Shauna Howell From: Shauna Howell Sent: Wednesday, October 07, 2009 11:03 AM To: Day, Bob; Evans, Brad; Janorschke, Brad; Brenda Applegate; Brenda Fuglestad; Brian Bjorkquist; Newton, Brian; Bryan Carey; Owens, Connie; Divina Portades, CEA; Zoerb, Don; Gary Dixon, Swalling and Associates, CPA; Dale, Henri; James Hemsath; Jean Schroeder, HEA Secretary; Jeff Estes, City of Seward; Jennifer McDonald, CEA; Posey, Jim; Joe Griffith, MEA; Foutz, John; Kirk Gibson, AterWynne; Linda MacMillan; Lynn Ragle, Swalling and Associates, CPA; Cunningham, Mike; Pattie Worrell, MEA Secretary; Rick Eckert, HEA; Rick Miller, AML&P; Sara Fisher-Goad; Shauna Howell; Shelby Weems; Susan Redlin, Exec. Secretary, GVEA; Gamble, Teresa Subject: FW: BMC representative FYI from our meeting today. Shauna From: Henri F. Dale [mailto: HFDale@gvea.com] Sent: Wednesday, October 07, 2009 10:01 AM To: Shauna Howell Subject: Fw: BMC representative o---- Original Message ----- _ From: Brian L. Newton — To: 'brad_evans@chugachelectric.com' <brad_evans@chugachelectric.com> Ce: Henri F. Dale Sent: Mon Oct 05 16:23:59 2009 Subject: BMC representative Brad, I may not make the conference call, so Henri will represent GVEA. Thanks, Brian Brian Newton, DM President/CEO Golden Valley Electric Association Sent from my Blackberry ‘ - Shauna Howell From: Henri F. Dale [HFDale@gvea.com] Sent: Wednesday, October 07, 2009 10:01 AM To: Shauna Howell Subject: Fw: BMC representative -—-- Original Message ----- From: Brian L. Newton To: 'brad_evans@chugachelectric.com' <brad_evans@chugachelectric.com> Ce: Henri F. Dale Sent: Mon Oct 05 16:23:59 2009 Subject: BMC representative Brad, I may not make the conference call, so Henri will represent GVEA. Thanks, Brian Brian Newton, DM President/CEO Golden Valley Electric Association Sent from my Blackberry eae x a ¥IDEX = ALASKA i @@im_ ENERGY AUTHORITY Fe HC Inigo ath Pe BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING AGENDA Wednesday, October 7, 2009 — 10:00 a.m. (via electronic media at the Alaska Energy Authority’s Board Room — 813 West Northern Lights Boulevard, Anchorage, AK) il CALL TO ORDER v Evans 2. ROLL CALL (for Committee members) v 3. PUBLIC ROLL CALL (for all others present) “ 4. PUBLIC COMMENT, ~ 5) AGENDA COMMENTS / MOTION FOR APPROVAL” 6. APPROVAL OF MEETING MINUTES June 10, 2009.” lis NEW BUSINESS A. BPMC Budget Policy (ACTION ITEM — tabled from last meeting)“ : Cunningham 8. COMMITTEE REPORTS / COMMENTS A. Operators Report “ van, le ’ ‘ Day B. Next Meeting Date “ (',/( ¢y '* Evans / 9. ADJOURNMENT 813 West Northern Lights Boulevard * Anchorage, Alaska 99503-2495 www.aidea.org * 907/771-3000 * FAX 907/771-3044 ® Toll Free (Alaska Only) 888/300-8534 * www.akenergyauthority.org Shauna Howell From: Kirk Gibson [Khg@aterwynne.com] Sent: Tuesday, October 06, 2009 5:37 PM To: Kirk Gibson; Shauna Howell; Day, Bob; Evans, Brad; Janorschke, Brad; Brian Bjorkquist; Newton, Brian; Divina Portades, CEA; Gary Dixon; Dale, Henri; Jean Schroeder, HEA Secretary; Jeff Estes, City of Seward; Posey, Jim; Lynn Ragle; Cunningham, Mike; Owens, Connie; Rick Eckert, HEA; Rick Miller, AML&P; Susan Redlin, Exec. Secretary @ GVEA; Gamble, Teresa; Zoerb, Don; joe.griffith@matanuska.com; pattie.worrell@matanuska.com; Brenda Applegate; Brenda Fuglestad; Bryan Carey; James Hemsath; Linda MacMillan; Sara Fisher-Goad; Shelby Weems Ce: Owens, Connie Subject: RE: Memo to BPMC - FERC Land Use Fees FERC Land Use Fees - UPDATE: | am providing this update to all in an effort to be more efficient at the BPMC tomorrow in that there is not much to report at this time. As you will recall, the last update reported that FERC removed the item from its September Agenda. The FERC filed its Status Report the next day to the DC Circuit Court stating that "The Commission has not yet issued an order resolving the issues raised by the rehearing request." Not much. The FERC's next public meeting is scheduled for October 15th. We will know the agenda early next week. Please do not hesitate to contact me should you have any questions or desire further information. Best regards, Kirk Kirk H. Gibson Partner Ater Wynne LLP 1331 NW Lovejoy Street, Suite 900 Portland, OR 97209-3280 503-226-8607 direct 503-226-1191 main 503-226-0079 fax khg@aterwynne.com www.aterwynne.com To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication, unless expressly stated otherwise, was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matter(s) addressed herein. NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED RECIPIENT OF THE TRANSMISSION, AND MAY BE A COMMUNICATION PRIVILEGED BY LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE, DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED. PLEASE NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN E-MAIL AND PLEASE DELETE THIS MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION. From: Kirk Gibson Sent: Thursday, September 17, 2009 1:35 PM To: Shauna Howell; Day, Bob; Evans, Brad; Janorschke, Brad; Brian Bjorkquist; Newton, Brian; Divina Portades, CEA; Gary Dixon; Dale, Henri; Jean Schroeder, HEA Secretary; Jeff Estes, City of Seward; Posey, Jim; Lynn Ragle; Cunningham, Mike; Owens, Connie; Rick Eckert, HEA; Rick Miller, AML&P; Susan Redlin, Exec. Secretary @ GVEA; Gamble, Teresa; Zoerb, Don; joe.griffith@matanuska.com; pattie.worrell@matanuska.com; Brenda Applegate; Brenda Fuglestad; Bryan Carey; James Hemsath; Linda MacMillan; Sara Fisher-Goad; Shelby Weems Cc: Connie Owens Subject: RE: Memo to BPMC - FERC Land Use Fees 9/17/09 UPDATE: FERC issued a supplemental notice for its meeting agenda today that removed the issue regarding FERC Land Use Fees from its agenda. Therefore, we do not expect to get an order from FERC on our annual charges rehearing request today. FERC's next scheduled meeting is October 15. We may have to wait another month until FERC takes action on the pending rehearing request, although it could issue a notational order on rehearing (i.e., FERC order approved and issued outside the normal meeting schedule) before then. There is no expectation that FERC staff will act on the various billing invoice appeals until FERC rules on rehearing. Because FERC has yet to rule on rehearing, its status report to the D.C. Circuit (due tomorrow) should be very interesting. Stay tuned. As always, please don't hesitate to contact me if you have any questions or desire further information. Best, Kirk Kirk H. Gibson Partner Ater Wynne LLP 1331 NW Lovejoy Street, Suite 900 Portland, OR 97209-3280 503-226-8607 direct 503-226-1191 main 503-226-0079 fax khq@at nne.com www.aterwynne.com To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication, unless expressly stated otherwise, was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matter(s) addressed herein. NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED RECIPIENT OF THE TRANSMISSION, AND MAY BE A COMMUNICATION PRIVILEGED BY LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE, DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED. PLEASE NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN E-MAIL AND PLEASE DELETE THIS MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION. From: Shauna Howell [mailto:shov __ aidea.org] Sent: Tuesday, September 15, 2009 4:18 PM To: Day, Bob; Evans, Brad; Janorschke, Brad; Brian Bjorkquist; Newton, Brian; Divina Portades, CEA; Gary Dixon; Dale, Henri; Jean Schroeder, HEA Secretary; Jeff Estes, City of Seward; Posey, Jim; Kirk Gibson; Lynn Ragle; Cunningham, Mike; Owens, Connie; Rick Eckert, HEA; Rick Miller, AML&P; Susan Redlin, Exec. Secretary @ GVEA; Gamble, Teresa; Zoerb, Don; joe.griffith@matanuska.com; pattie.worrell@matanuska.com; Brenda Applegate; Brenda Fuglestad; Bryan Carey; James Hemsath; Linda MacMillan; Sara Fisher-Goad; Shelby Weems Subject: FW: Memo to BPMC - FERC Land Use Fees Please see the attachment from Kirk Gibson. Shauna Howell showell@aidea.org (907) 771-3028 wet Dex BPMC Bradley Lake Hydro Plant Report August 19 to September 29, 2009 As compiled from Jim Kingrey’s bi-weekly reports Plant Production «Power Produced = 112,750 MW-hours « Hydraulic Usage = approximately 115,000 AC-ft « Lake Level = 1174.1 ft Events / Emergency Issues No safety or environmental issues to report. .MEA Board of Directors toured Bradley August 5". An aide to Senator Murkowski (Kelli Donnelly) toured Bradley Lake August 7”. 3 HEA Board of Directors toured the plant on 9/17/09 The Speaker of the Alaska House of Representatives Mike Chenault and Alaska State Senator Tom Wagoner toured the plant on 9/18/09. * Senate President Gary Stevens and possibly Paul Seaton will tour Bradley November 16" or 18th Significant Work / Activities Performed « Worked on Nuka Diversion repairs on 8/31, pumped basins and found the diversion is full of glacier silt. A large amount of glacier silt has filled the inlet basin and has covered the pipes for the gates by approximately 12 inches. Working on developing plans to continue with repairs. . Penstock Drain Cleaning was started. The pipe cleaner stopped moving and is stuck in the lower left Penstock Drain Pipe at approximately 380 ft into the pipe. Pipe cleaner will be retrieved and will continue to work on pipe after outage is complete. * Completed Unit 1 Annual Outage. New turbine runner is in excellent condition and still looks new. No wear or damage was found. Performed dye penetrate testing on every fourth bucket root with no cracks found. Commenced Unit 2 Annual Outage on 9/15/09. Unit 2 is scheduled to return to service on 9/22/09. Completed Power Tunnel and Diversion Tunnel Gate Testing on 9/15/09. Completed Unit 2 Annual Outage. New turbine runner is in excellent condition and still looks new. No wear or damage was found. > During the Generator Inspection, 2 bolts and their respective locking tabs were missing from the upper generator stator fan shroud cover in the west quadrant. Both of the bolts and one of the locking tabs were found in the generator compartment. We were unable to locate the other locking tab. The generator stator covers and other covers were removed and numerous, very thorough inspection were performed of the generator rotor, stator, bus connections, supply and exhaust ducts, and the compartments, but the locking tab could not be found. The O&D Committee decided on a teleconference to return the unit to service. Unit 2 was returned to service at 9:30 am on 9/26/09. * ABB completed inspection and testing on the Gas Insulated Substation. The Substation was determined to be in excellent condition and passed all testing. 4 sections of bus needed slight amounts of SF6 gas added. No leaks could be found. Diamond Ridge Line relay replacement was completed. New Cathodic Protection Rectifiers were installed in the Power Tunnel and Diversion Tunnel Gate Houses. The new rectifiers were placed in service and are being monitored for proper operation. Nuka Diversion repair work is scheduled for Monday 10/5/09 (rescheduled for Friday October 9") Bradley/ARemer/Weekly Reports Annual Inspection Results The generator was found in very clean and excellent condition. ~ However, during the Annual Inspection of the generator on Unit 2, two bolts and locking tab ; washers were found to be | missing from the lower bolt holes in the Stator Fan Shroud Cover. Missing Bolts and Locking Tab WES ale _ The two missing bolts were found in the lower generator compartment during the Annual Inspection. ~ One of the missing locking tab washers was found during subsequent inspections on top of the exhaust ventilation duct in the upper generator compartment. Upper and Lower Generator Compartments Upper and Lower Bearing Housings < Generator Stator Generator Stator (Continued) All horizontal surfaces and accessible areas Inspection Results The missing Locking Tab Washer could not be found after all efforts to locate were exhausted without removing the rotor. Discussed results with the O&D Committee via teleconference. It was decided that the risk would be minimal due to the small, very thin size of the locking tab versus the robust design and heavily insulated generator. The decision was made to return the unit to Solas(eor Root Cause and Corrective Actions Root Cause: The bolt hole diameter on the OEM locking tab washers is excessively large compared to the bolt size. The bent tab securing the bolt head was not secured properly allowing the tab to slip and unlock the bolt. Corrective Actions: All other bolts were checked and secured properly. All bolts were re-installed with Loctite Thread Locking compound. New locking tab washers will be purchased with the correct bolt hole size and designed with additional locking tabs. Agenda Item: 7A Operations and Maintenance: Bradley Project Management Committee (BPMC) approval for budget changes will be required if the projected budget surplus or deficit is greater than $250,000. Variation among the individual line items of the budget will not require BPMC approval. Renewal and Contingency Fund Projects: Capital projects approved by the BPMC and exceeding $500,000 will be funded out of the Renewal and Contingency Fund (R&C Fund) which provides for repayment to the fund over a four year period. Other capital projects will be considered part of the Operations and Maintenance budget unless otherwise directed by the Operations and Development (O&D) and Budget Subcommittees and approved by the BPMC. BPMC approval, based on O&D Subcommittee recommendations, will be required for a R&C Fund project increase the lesser of 15% of project cost or $250,000 and above. MOTION: Move to adopt the above stated budget policy. Move: ee —— BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES (via electronic media in the AEA Board Room) Anchorage, Alaska Wednesday, June 10, 2009 — 10:00 a.m. A: CALL TO ORDER Chair Evans called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:00 a.m. on Wednesday, June 10, 2009, at the AEA 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: Harvey Ambrose Homer Electric Association Brad Evans Chugach Electric Association Brian Newton Golden Valley Electric Association (teleconference) Jim Posey Anchorage Municipal Light and Power Bryan Carey Alaska Energy Authority Gary Kuhn Matanuska Electric Association (teleconference) - City of Seward 3. PUBLIC ROLL CALL Shauna Howell, AEA Shelby Weems, AEA Carol Harviston, ARECA Insurance Marilyn Leland, ARECA Insurance Marge Cabanski, AEA Rick Eckert, HEA Bob Price, AML&P Rick Miller, AML&P Linda MacMillan, AEA Bob Day, HEA BPMC June 10, 2009 Meeting Page 1 of 6 4. PUBLIC COMMENT There were no public comments. 5. AGENDA COMMENTS There were no agenda comments. 6. APPROVAL OF MEETING MINUTES — February 26, 2009 and April 23, 2009 MOTION: Mr. Newton moved to approve the minutes of the February 26, 2009 meeting. Seconded by Mr. Posey. The meeting minutes were unanimously approved. MOTION: Mr. Posey moved to approve the minutes of the April 23, 2009 meeting. Seconded by Mr. Carey. The meeting minutes were unanimously approved. le NEW BUSINESS 7A. Presentation of Fish Water Release Mr. Carey stated that Terror Lake has a trial permit modification from FERC on their fish water releases so that they can go 7.5% below what the required minimums are for short periods of time as long as they are up to the minimums for the day. The problem we have at Bradley is that we are gauged 8 miles away from the dam — if it even pops up for a 15 minute interval on to the USGS gauge, at that point we are under violation with our FERC permit. That happens about two or three times per year. The fish water releases can be raised to prevent going into violation so frequently. We are trying to get a better handle on controlling how much water is being released and run it closer to what the minimums are and do a trial FERC modification permit just like the one at Terror Lake. It seems like the resource agencies are not against it and cost-wise we are looking at $25 — $50,000 total of which $10 — $20,000 may be mitigation of fish and game such as a fish survey of the lower Bradley river. In the case of 1 cfs over a year’s time we are consuming 100 megawatts - that comes out to about $72,000. It could be that by running the releases much closer to the minimums with this permit modification we could be saving $200,000 or $300,000 in terms of water each year. There will be some additional work that has to go on in regards to how dispatch at CEA talks to the operators down there so that the operators will know if we go more than the 7.5% below but they can’t be watching their gauges all day long, so there will have to be some work on the coordination of that. Chair Evans asked if the icing and seasonal conditions care for the equipment was well enough so that it would reliably tell us where we were at. Mr. Carey noted that a suggestion for the icing at the gauge would be to put a camera there and operators could see what icing is occurring. For icing that occurs in the canyon, that typically occurs BPMC June 10, 2009 Meeting Page 2 of 6 during the spring months when we have a lot of snow melt. Currently the operators set the releases high just knowing that overnight when no one is watching the gauge levels that it is going to start freezing up — this way having a 24 hour rolling average we will be able to set the release amount during the night time as being a lot closer to what is being required. If it does freeze up we can still catch up with it the next day in terms of opening up the gauges farther. Chair Evans asked if there are fry in the lower river year-round? Mr. Carey replied that during the winter it is the eggs and it is actually thought, without having any type of proof, that we actually have more salmon there now than we did when Bradley was built just because the regulation of the river has allowed greater habitat usage. It is from that standpoint that with the money to be spent, that it may be that Fish & Game request $10,000 to do a fish survey and from that stand point we can prove that having a hydro here is actually beneficial to the salmon. He also added that he was talking about a survey to see what was in there — through discussions with fish and game and what is incurred in regards to Terror Lake. Chair Evans asked if we would get all of the life cycle information — how long they are in there, when they are flushed out? Mr. Carey stated that it wouldn't be the life cycle information because they have all of that information. It would be information such as has the habitat changed and are there more spawning areas and greater numbers of salmon. There has been a teleconference with resource agencies and they will let us know what information they want from us. A month after that we will do a formal proposal to them to do the modification trial. The formal letter will be disbursed and get concurrence from them and then go to FERC letting them know we have gone to the resource agencies and they are all in agreement with us about proceeding on this path. Chair Evans asked when they needed the funds. Mr. Carey stated this was discussed with the O&D and Jim Thrall. Jim’s time is worth $5,000 - $10,000 for the entire amount and we are using it under the engineering support. If Fish & Game wants to have some type of study, that would be $5,000 - $10,000 mitigation that we could come back and request that. Mr. Day added that the item was put in the budget for Middle Fork equipment check improvements . and fish water for $55,000. Some of that will be spent for equipment. Most of what Mr. Carey spoke on is already in the budget. Chair Evans asked Mr. Carey to provide a schedule of what hope to accomplish in the remainder of this budget year. 7B. O&D Report on Bradley Unit Trips Mr. Day stated that there had been a number of trips at Bradley Lake and he is now reporting back to the group on those. On March 23, 2009, Bradley Unit 2 tripped and went off line. There was ‘misbehavior out of the system and Bradley contributed to that. The root cause was a vibration sensor on the Nikiski machine which tripped off 40 megawatts. Bradley was in condense mode and it tried to come out of that and there is a mode that is designed into the new governor that is the divider BPMC June 10, 2009 Meeting Page 3 of 6 at) mode 2, which makes Bradley very aggressive/in controlling frequency. It swung the system around extensively. In order to mitigate that, they a ig with VA Tech and have a procedure to remove divider mode 2. We will move the set mode ertz so it won't go into divider mode 2. Waiting on technical guidance from VA Tech to implem ont py lts Chair Evans asked if there was any use as a last ditch effort to set that one-tenth of a hertz higher than the mechanical estes on turbines? Mr. Day responded that Mr. Burlingame looked at it from that standpoint and it pushes things around too much. This is an easy way to disable it. The 115 kv ring bus opened up and we couldn't determine why. We believe there used to be an old breaker back-up that used to be implemented there — there are some notes in the original documents. We didn’t want to get in there and test that because it opens up the ring bus. That is on our agenda for the planned outage coming up in July. We will investigate the back-up scheme. It’s breaker failure and information about if one of the two lines is out of service and you are above 50 megawatts you'll trip one of the machines — there are some limitations and strange wiring hidden in the back that we are unable to get good documentation and investigation on. Also, while that had us in single mode operation, we took the opportunity to do our annual relay testing. Normally the relay technician plugs a test block into the relay, does his test and unplugs it. On this particular relay, when it was plugged in, it tripped the unit. We investigated it, found nothing wrong except that maybe when he put in the test block he put it in a little crooked. To prevent any further problems, we lifted all of the trip leads before we inserted the test block. On March 25, 2009, the gate configuration is such that if you lose power at the gate house the inlet to the penstock will close automatically. There is a 3-fold system at the gate house — a main power, backup power and emergency generator plus an inverter that is all supposed to carry you through any kind of outages or problems. During the 23% there were oscillations through the system, the transfer switch at the gate house ‘went crazy’ trying to follow all of this and got itself in a mode where it hung up in between states. The inverter powered the gate house for the next two and a half days. Once the inverter ran out of battery power, the power failed and the gate shut. We lost the unit on low penstock pressure. It is a matter of human to machine interface. The SCADA points we monitor are not as clear as they should be on loss of power, loss of AC. The loss of AC relay is loss of AC and it means the gates are going closed, but that means your communication is down and your RTU is down and you don't get that alarm. We have a number of improvements to make at the gate house in terms of putting in a new RTU, putting in new points, putting in new alarms and enunciation and making sure we are monitoring the incoming AC, the inverter AC, whether the generator is running or not, so that the operator and dispatcher at CEA will have full knowledge of what is going on and that will prevent any further problem like this. Had we noticed we were on inverter power at the gate house on the 24" this wouldn’t have been a problem, but we were not aware. 7C. BPMC Budget Policy The budget policy was tabled until the next meeting. BPMC June 10, 2009 Meeting Page 4 of 6 7D. Update on FERC Land Use Fees Protest Mr. Gibson gave a briefing on the protest. He stated that the protest is made up of 11 utilities. The legal expenses of the group will be allocated per each share pro-rata share of federal land within the project. This puts the BPMC at 10.5% of the total bills. Background information was gathered on the land use classification, how Alaska classifies the area around the geographical decision and how isolated Bradley is and the non-project uses on the federal land, which is subsistence hunting and fishing and some camping, as well as the non-allocable project land (farming). This information went to attacking the agricultural index that they now use. FERC’s underlying contention is the projects fully encumber, meaning doesn’t allow any other use of the land, and the problems with Bradley Lake is that the Kenai peninsula has all of the same classifications so downtown Homer has the same classification as Bradley Lake. In our permit request it talks about the transmission line being in wetlands and can only be repaired by helicopter and then access to the project itself is by air or water. We are waiting to hear FERCs ruling on the request for re-hearing. We think that FERC is waiting to see who has paid and who hasn't. Because we were not in the original nine utilities protected by the court, the group went ahead and filed an appeal of the bills on our behalf and Seattle’s behalf. They used the same analysis and work as they did on the other one. The BPMC group approved $30,000. We received a memo from the attorneys and they spent more time than they thought on the original work and they had to add extra work because of the two late-comers (Bradley Lake and Seattle) but they used ons a th, information. They had $125,000 in bills so = but they v wr é $25, 000-aifise/ lel tannin probably Sa@pOT a os thar-$50;000-so-We Shoutd_be-undet ol projected budget We have a in the whe that we can decide if we want to go forward and how much and maybe we benefit from the group as a whole from this point forward. ee ex ee ws Chair Evans asked how do you protect the individuality of a project in this group? Mr. Gibson responded that they are protecting us very well on the individuality on the nature of it. They went into a fairly extensive description of what is in our permit. Chair Evans asked since we are in a pool, do you think there is a risk of a compromise that splits it down the middle and some got a fair resolution and some got less than fair resolution out of it? Mr. Gibson responded that they pick a system to value land and then they apply it on all of the different dams. If they pick a general index of any type, you are always at risk of individual projects being abused by that index. Then the question being - is there a process in there that you can show that yes, you are using the index but it doesn’t apply to me. The question came up of when we have to pay. Mr. Gibson noted that the bill has already been paid in protest. Also to be noted, the last time they gave a refund, it took seven years for the dams to receive it. BPMC June 10, 2009 Meeting Page 5 of 6 8A. Operators Report Mr. Day presented the group with two handouts. We are at 43% of our average. There is very little snow pack. It is the first time I've ever been to the dam on the first of May and very little action with the bulldozer to get there. The peninsula received significant ash fall and that accelerated the snow melt. There wasn’t much snow to accelerate, but what was there is almost gone. We are at or near the average for this time of year. Also noted is that Aaron Reemer has resigned. They are interviewing for a replacement. They are investigating the backup breaker scheme. Had a fail to start on May 31°. Had an outage on the tie line with no blackout. Unit 2 failed to start. An air pressure sensor had hung up on it — once that was restored the machine started and ran correctly. All of the corrective actions at the gate house, as well as some SF6 inspection and exciter stability study to do. Need to go back to Nuka glacier to see if there is any work to be done soon, as well as power tunnel cleaning, air monitoring, installations, clean and paint the diversion pipe. Transmission tower jacking was also in the budget. The O&D met and decided on a Chair/Vice Chair rotation. HEA will be the Chair and a Vice Chair will alternate through the committee, because HEA is on top of the project and can make the reports and call the meetings easier than someone else. Lastly, there is equipment on order that will be placed on Middle-Fork to give an indication on what is coming into the Middle-Fork for fish flows and that is a piece of the equation for the lower Bradley river so we can get tighter control and keep the water in the dam. Mr. Carey noted a change — the Vice Chair is AEA and is not rotating. Mr. Carey also asked that the utilities update their representative and alternate letters. 8B. Next Meeting Date The next meeting will be at the call of the Chair. 9. ADJOURNMENT Meeting adjourned at 11:07 a.m. BY: Brad Evans, Chair ATTEST: Alaska Energy Authority, Secretary BPMC June 10, 2009 Meeting Page 6 of 6 © Main Office (907) 224-4050 © Police (907) 224-3338 © Harbor (907) 224-3138 © Fire (907) 224-3445 © City Clerk (907) 224-4046 © Engineering (907) 224-4049 © Utilities (907) 224-4050 © Fax (907) 224-4038 CITY OF SEWARD PO. BOX 167 SEWARD, ALASKA 99664-0167 October 8, 2009 Bradley Lake Project Management To Whom It May Concern: The City of Seward’s primary designated voting representative to the Bradley Lake Project Management Committee is Electric Utility Manager John Foutz. The secondary representative will be Operations Supervisor Jeff Estes. If you have any questions, please don’t hesitate to call me. Sincerely, Cle Phillip Oates City Manager Shauna Howell From: John Foutz [jfoutz@cityofseward.net] Sent: Thursday, October 08, 2009 4:46 PM To: Owens, Connie Ce: Shauna Howell Subject: BLPMC Authorization letter Attachments: Bradley lake PMC Auth.pdf Hi, Attached is the letter authorizing Myself as the representative and Jeff Estes as the alternate for Bradley Lake PMC. Please let me know if you need anything else. Thank you, John Foutz City of Seward Electric Utility Manager Office: 907-224-4071 BRAD ' KEPROJECTMANAGEMENT( 1{ TEE List of Representatives Representative Alternate Brad Evans Burke Wick Chairman Brad Janorschke Harvey Ambrose Vice Chairman Bryan Carey James Hemsath Secretary/Treasurer Brian Newton Kate Lamal James Posey Doug Hall John Foutz Jeff Estes Evan “Joe” Griffith Don Zoerb Kirk Gibson Effective Date: 01/09/03 Revised Date: Utility Chugach Electric Association 5601 Electron Drive Anchorage, Alaska 99518 Phone: 563-7494 Fax: 762-4514 Brad_evans@chugachelectric.com Burke Wick@chugachelectric.com Homer Electric Association 3977 Lake Street Homer, Alaska 99603 Phone: 235-8167 Fax: 235-3323 bjanorschke@homerelectric.com hambrose@homerelectric.com AEA 813 W. Northern Lights Boulevard Anchorage, Alaska 99503 Phone: 269-3000 Fax: 269-3044 bcarey@aidea.or jhemsath@aidea.org Golden Valley Electric Association P.O. Box 71249 (758 Illinois) Fairbanks, Alaska 99707 Phone: 452-1151 Fax: 458-5951 bin@gvea.com Municipal Light & Power 1200 E. First Avenue Anchorage, Alaska 99501 Phone: 279-7671 Fax: 263-5204 PoseyJM@muni.org Halldw@muni.org City of Seward P.O. Box 167 (234 Fourth Avenue) Seward, Alaska 99664 Phone: 224-4071 Fax: 224-4085 jfoutz@cityofseward.net jestes@cityofseward.net Matanuska Electric Association P.O. Box 2929 (163 Industrial Way) Palmer, Alaska 99645-2929 Phone: 689-9211 Fax: 689-9368 joe.griffith@matanuska.com dwzoerb@matanuska.com AterWynne 222 S.W. Columbia, Suite 1800 Portland, Oregon 97201-6618 Phone: (503) 226-1191 Fax: (503) 226-0079 khg@aterwynne.com 10/09/09 JANUARY SM TWTFS 4 5 @)2 6789 3 10 11 12 WB) 14 15 16 17 18 25 15 22 12 & 19 26 10 17 24 31 14 21 28 26 20 21 22 23 27 BB 29 30 FEBRUARY M 2 Wr Pe 3) 455) 6 9 10 fi} 12 13 17 18 19 20 23 24 25 B6 27 M 2 9 16 23 @) 15 22 29 MARCH TWTFE 3.4 5 6 10 fi} 12 13 17 18 19 20 24 25 96) 27 31 > re a qh RICWn CSCW NDON Nee Sh N78 12 W314 15 19 20 21 22 26 27 28 29 JUNE TeWwtye 23-4 5 9 10 Wi 12 16 17 18 19 23 24 D5) 26 30 24 31 14 Zl 28 14 21 28 11 18 25 13 20 27 2009 State Calendar State Holidays: January 1 New Year’s Day 19 Martin Luther King, Jr.’s Day February 16 Presidents’ Day March 30 Seward’s Day May 25 Memorial Day July 4 Independence Day (observed 3rd) September 7 Labor Day October 18 Alaska Day (observed 19th) November 11 Veterans’ Day 26 Thanksgiving Day December 25 Christmas Day )) Warrant Distribution(_) Holiday State calendar maintained by DOA-IT, Division of Administrative Services, Department of Administration. www.state.ak.us/admin Revised 2/20/2009 S 5 12 19 26 16 23 30 6 13 20 27 13 20 27 JULY M TWT 12 6 7 8 91011 13 4 15 16 17 18 20 21 22 23 24 25 27 28 29 30 31 F S 4 AUGUST M TWTES 1 B14) 1516) 7 8 10 11 1213 14 15 17 18 19 20 21 22 24 25 26 BF 28 29 31 SEPTEMBER M TWTFES 2134s @ 8 9 10 fi 12 14 15 16 17 18 19 21 22 23 24 BB) 26 28 29 30 OCTOBER M TWTFES 23 5 6 7 8 910 12 9B) 14 15 16 17 20 21 22 23 24 26 27 28 B59 30 31 NOVEMBER M TWT Bis 9 10 16 17 1 ( 23 24 2520 BF 30 DECEMBER MTWTFES 1 23 45 7 8 9 10 Gi 12 14 15 16 17 18 19 21 22 23 24@3)26 28 B9 30 31