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HomeMy WebLinkAboutBradley Lake PMC Meeting January 14, 1997 1 ”“Wednésday, January’ 8, 1997” F-7~ a ee ee - Notices 900 ‘ALASKA ENERGY AUTHORITY/ALASKA INDUSTRIAL DEVELOPMENT AND % © EXPORT AUTHORITY i z Public Notice i Bradley Lake Project Management Committee Notice is hereby given that the Bradley Lake Project Manage- ment Committee will hold a regular meeting to conduct the affairs of the Committee at the Anchorage Municipal Light & Power offices, 1200 East Ist Avenue, Anchorage, Alaska 99501. This meeting will com- mence at 10:00 a.m., Tuesday, January 14, 1997. For addition- al information, contact Thomas R. Stahr, Chairman, Anchorage Municipal Light & Power, 1200 East Ist Avenue, Anchorage, Alaska 99501. The State of Alaska (AIDEA), com- plies with Title I! of the Amer- icans with Disabilities Act of 1990. Disabled persons requir- ing special modifications to participate should contact AIDEA stoff at (907) 269-3000 to make special arrangements. Alaska Energy Authority Project Management Committee Pub.: January 81997 _ ALASKA INDUSTRIAL DEVELOPMENT e_, * AND EXPORT AUTHORITY {= ALASKA i ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 ALASKA ENERGY AUTHORITY/ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY Public Notice Bradley Lake Project Management Committee Notice is hereby given that the Bradley Lake Project Management Committee will hold a regular meeting to conduct the affairs of the Committee at the Anchorage Municipal Light & Power offices, 1200 East 1st Avenue, Anchorage, Alaska. This meeting will commence at 10:00 a.m. on Tuesday, January 14, 1997. For additional information, contact Thomas R. Stahr, Chairman, Anchorage Municipal Light & Power, 1200 East 1st Avenue, Anchorage, Alaska 99501. The State of Alaska (AIDEA), complies with Title Il 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 special arrangements. /s/ Alaska Energy Authority Project Management Committee Publish: Wednesday, January 8, 1997 hall\eva\bradley\bladvtzg (Wa ad 4. ee ~ olay ~ June - W/6/47 far eiecd ee i/qo9 YK KKK KKK KKK KK KK KKK KOK KKK KK KKK KK KKK KKK OK KKK KKK KOKORO KOK KOKORO KOK RRR KKK A x x x x x x x x x x x x x x 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 Mb letalbslacclal el JAN-06-97 MON We i SEND (M) DATE START — RECEIVER TX TIME PAGES TYPE NOTE Mt DP JAN-06 12:02 PM 92798170 1'15" 2 SEND (M) OK 183 TOTAL IM 15S PAGES: 2 YORK KK KKK KKK KKK KKK KKK KKK KKK KKK KK KKK KKK KK KKK KK KK KKK KKK KKK KK KKK KK KK KK KOK KOK KKK KK KKK ALASKA INDUSTRIAL DEVELOPMENT * AND EXPORT AUTHORITY a= ALASKA GME ENERGY AUTHORITY FAX 907 / 269-3044 January 6, 1997 FAXED: 1/6/97 2 PAGES Anchorage Daily News 1001 Northway Drive Anchorage, Alaska 99508 ATTENTION: Ms. Eva Kaufmann Legal Classified Subject: Public Notice Account # ALASO709 Enclosed is an advertisement for the Alaska Energy Authority which is to be published under “PUBLIC NOTICE” in the Legal Classified section in column format. This notice needs to be published for one day: Wednesday, January 8, 1997. De DE DE DE DME DME MK OM MK MK HK OK OM OK he ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY = ALASKA iE =ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 January 6, 1997 FAXED: 1/6/97 2 PAGES Anchorage Daily News 1001 Northway Drive Anchorage, Alaska 99508 ATTENTION: Ms. Eva Kaufmann Legal Classified Subject: | Public Notice Account # ALASO709 Enclosed is an advertisement for the Alaska Energy Authority which is to be published under “PUBLIC NOTICE” in the Legal Classified section in column format. This notice needs to be published for one day: Wednesday, January 8, 1997. After the publication date, please provide an Affidavit of Publication. If you have any questions, please do not hesitate to call me. Thank you, J 7 Haun, It. Dea Shauna M. Dean Attachment hzall\eva\bradley\bladvizg, BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA Tuesday, January 14, 1997 - 10:00 a.m. Anchorage Municipal Light & Power Commission Room - 1200 East 1st Avenue 1 CALL TO ORDER Stahr 2. ROLL CALL 3. PUBLIC COMMENT 4. AGENDA COMMENTS 5. APPROVAL OF MEETING MINUTES - November 19, 1996 6. BUDGET SUBCOMMITTEE REPORT Pease a OPERATION AND DISPATCH SUBCOMMITTEE REPORT Sieczkowski 8. OLD BUSINESS A. Spinning Reserves Update Lovas 9. NEW BUSINESS A. Reimbursement for Transfer Trip Scheme Story 10. COMMITTEE COMMENTS A. Next Meeting Date Stahr 11. ADJOURNMENT xb 3-F20 | hzall\eva\bradley\agenda JO KOK KK OK KK KOK KKK OK KKK KK KKK KOK KKK KKK KOK KOK RK ROR RR RII RIK RRA RAR RRA RAR ARR RR RAR RRR X X X X x x X X x x x x X X re ee SEND (IM) P, 01 TRANSACTION REPORT TENNANT NTTTATTTTaT JAN-09-97 THU 10:13 AM DATE START — RECEIVER TX TIME PAGES TYPE NOTE M# DP JAN-09 10:12 AM 92635204 109" 2 SEND (M) OK 034 —_————— ee TOTAL IM 95 PAGES: 2 SOKO OOOO OOOO OOOO OOOO OO OOOO OOOO OOOO OOOO OOO OOOO OOO A IACONO OKC OOK KKK ALASKA INDUSTRIAL DEVELOPMENT = > ¢ oes = ALASKA @ME ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 Facsimile Transmittal yy Number of pages including cover page: ae De Me ME DME DE DE DME ME DME MK MK OK MK OME i @ . : ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY /= ALASKA @@E— =ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 Facsimile Transmittal TO: Auue Lp Hay Company AN L+¢ | ee are el MU ee AN We 2 ne Mal <2 From: QI O- Lavy Date: a vouL MK GO AO Gisz A Time: (2:10 p.m. 4a Number of pages including cover page: ped Transmittal Contents: Comments: as Faas Lez + rhs Q. 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, (907) 269-3000. H/all/cheryl/fax/one.doc 11. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA Tuesday, January 14, 1997 - 10:00 a.m. Anchorage Municipal Light & Power Commission Room - 1200 East 1st Avenue CALL TO ORDER Stahr ROLL CALL PUBLIC COMMENT AGENDA COMMENTS Noverbe 17, 19% APPROVAL OF MEETING MINUTES - August-6-+996— BUDGET SUBCOMMITTEE REPORT Pease OPERATION AND DISPATCH SUBCOMMITTEE REPORT Sieczkowski OLD BUSINESS A. Spinning Reserves Update Lovas B. Construction Agreement Beardsley “ke ae b ue renter Trip Schone NEW BUSINESS \ ne stellatiy. Chovges fim trator $xip Es, Story COMMITTEE COMMENTS Su Pct -F Depa yet. A. Next Meeting Date eae Stahr ADJOURNMENT h:all\eva\bradley\agenda BY oer) ie Qo | BRADL' LAKE PROJECT MANAGEMENT ( f{ITTEE MEETING MINUTES Commission Room Anchorage Municipal Light & Power 1200 East lst Avenue Anchorage, Alaska Tuesday, November 19, 1996 10:00 a. / 1. CALL TO ORDER f Vice Chairman Eugene Bjornstad called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:10 a.m. in the Commission Room of Anchorage Municipal Light & Power, 1200 East lst Avenue, 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, Vice Chairman Chugach Electric Association Dave Calvert City of Seward Dan Beardsley Alaska Energy Authority Jim Hall Matanuska Electric Association Mike Kelly Golden Valley Electric Association Don Stead Homer Electric Association Tim McConnell Municipal Light & Power Others Present: Stan Sieczkowski, Alaska Energy Authority Shauna Dean, Alaska Energy Authority John S. Cooley, Chugach Electric Association Dora Gropp, Chugach Electric Association Norm Story, Homer Electric Association Hank Nikkels, Municipal Light & Power Mike Cunningham, Municipal Light & Power Bob Hufman, AEG&T Virgil Gillespie, Fairbanks Municipal Utility System Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerritt 3. PUBLIC COMMENT None. Bradley Lake Projec fanagement Committee Meeting Minutes Tuesday, November 19, 1996 Page 2 of 4 4. BAGENDA COMMENTS There were no additions or corrections to the agenda, and it was adopted by unanimous consent. 5. APPROVAL OF MEETING MINUTES - AUGUST 6, 1996 MOTION: Mr. Calvert moved, seconded by Mr. Kelly, to approve the meeting minutes of August 6, 1996. The following correction was noted: Page 3, second line of the fourth paragraph - "“cellunoid" should be corrected to "solenoid." There being no further additions or corrections, a roll call vote was taken, and the minutes were unanimously approved as amended. 6. BUDGET SUBCOMMITTEE REPORT On behalf of Ms. Pease, Mr. Cunningham said the Budget Subcommittee had not met recently, but a meeting was tentatively scheduled for December 4, 1996. 7. OPERATION AND DISPATCH SUBCOMMITTEE REPORT Mr. Sieczkowski said the O&D Subcommittee had met the previous day, Monday, November 18, 1996. He reported that Bradley maintenance had been performed routinely, and the monthly reporting of the maintenance activities would be resumed. Mr. Stead had advised that the SCADA system seemed to be becoming a maintenance problem, and Homer Electric would monitor the system and recommend action in the future. Mr. Sieczkowski said the operations at Bradley had been routine, and the November 1 water allocation revision updates would be provided to the utilities by November 27. He noted that the actual water in-flows into the lake had been below the projections and statistical normal averages. Mr. Sieczkowski reported that the governor response study had been delayed due to the high-dollar proposal that had been received, changes in the personnel evaluating the proposals, and the negotiations with the sole bidder on the RFP. The committee had been requested to resume negotiations with the sole bidder and/or to make a proposal to the O&D Subcommittee for action. Mr. Sieczkowski reported that the North Fork Bradley River flow monitoring equipment had been installed by the U.S.G.S. The permanent site was being developed by AEA, and Homer Electric was providing the SCADA modifications through its contractor, Shannon & Wilson. It was anticipated the project would be completed by the end of the summer of 1997. The FERC Part 12 safety inspection had been completed and filed with FERC. No structural or operational deficiencies were noted, but the following minor maintenance recommendations were made: & D a Bradley Lake Project anagement Committee Meeting Minutes Tuesday, November 19, 1996 Page 3 of 4 Mr. (1) (2) (3) (4) (5) Monitor the survey movement monuments on the dam face every five years; Measure dam seepage annually; Measure, record, and plot the spillway gallery drain flows; é penstocs Measure the [gem draingflow annually; and Observe the dam and spillway conditions during the winter months by doing a monthly fly-over. x Sieczkowski reported that the FAA had identified and noted the Martin River airstrip and the airstrip adjacent to the power house as private, and the paperwork was being completed. The renewal and replacement equipment list was being developed and was under review by the O&D Subcommittee. would be made to the BPMC. Mr. area around the project facilities. Upon completion, a recommendation Sieczkowski said that due to the excessive amount of beetle-killed timber, AEA had requested the State Division of Forestry to survey the conducted the survey and advised that a potential problem existed. had recommended that the danger trees be cleared away from the project structure, Mr. Sieczkowski said the O&D Subcommittee was currently evaluating the situation and was working with HEA and the Homer Fire Department to develop a plan to alleviate the fire hazard posed to the project facilities and personnel. maintenance costs on the SCADA system, Mr. 4 problems were related to the Gernoul}) tape storage_drives. W, Aotrwond ! J Stead In response to Mr,-Steads” question Aen reason for the The Division of Forestry had They high is said most of the Spel/ine ? r-nov/// Citing the August 6th meeting minutes, Mr. McConnell asked if the cause had been determined for the Unit No. 1 trip which had resulted in an outage on July 24th. Mr. Stead said although they had suspected vibration as the culprit, cause. 8. OLD BUSINESS A. Spinning Reserves Update they were unable to determine the actual 435- he) Dew Stead Reporting for Mr. Lovas, Mr. Cooley said the Reliability Criteria Committee from ASCC had met and discussed spinning reserves, and were in the process of performing an economic study to determine what it would cost to change the spinning reserve requirements. they He reported that Mr. Stahr had provided an article regarding a study that had been conducted in Ireland recommending that an on-line study be conducted on a continuous basis which would determine the ending frequency when a machine dropped off, ongoing basis based on this data. interesting idea, and spinning reserves could be adjusted on an The RCC had agreed that this was an and that they would review additional data to ~w Bradley Lake Projeci anagement Committee Meeting Minutes Tuesday, November 19, 1996 Page 4 of 4 determine whether it would be viable to incorporate this concept into the new SCADA system. B. Construction Agreement Mr. Beardsley said he just wanted to confirm that the construction agreement between AEA and HEA was ready to be executed. He said he had distributed copies to all the parties about a month and a half ago, and he wanted to verify that there were no additional concerns or comments to be raised. He said AEA and HEA were agreeable to the form of the document, and if no objection was raised, the contract would be executed. There was no action required by the BPMC at this time. Brief discussion was heard regarding the history of the construction agreement. 9. NEW BUSINESS A. New Agenda Item for Next Meeting With respect to the previous item, Mr. Story noted that HEA had sent a letter to Mr. Stahr in August advising that HEA needed to be reimbursed for the installation charges for the transfer trip scheme in support of the Bradley project. He said these expenses had been paid by HEA on an ongoing basis since 1991, and the amount totaled approximately $173,000. He said he would compile the documentation, and this should be included as an agenda item for the next BPMC meeting. 10. COMMITTEE MEMBER COMMENTS There were no Committee member comments. A. Next Meeting Date The next regular meeting of the Bradley Lake Hydroelectric Project Management Committee was scheduled for Tuesday, January 14, 1997, at 10:00 a.m. in the Commission Room of ML&P. 12. ADJOURNMENT There being no objection and no further business of the Committee, the meeting was adjourned at 10:25 a.m. BY: Eugene Bjornstad, Vice Chairman ATTEST: Alaska Energy Authority, Secretary SD: Executary/csc 1571 bpmc.min 12/23/96 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES Commission Room Anchorage Municipal Light & Power 1200 East 1st Avenue Anchorage, Alaska Tuesday, January 14, 1997 10:00 a.m. 1. CALL TO ORDER Chairman Tom Stahr called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:05 a.m. in the Commission Room of Anchorage Municipal Light & Power, 1200 East 1st Avenue, 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: Tom Stahr, Chairman Municipal Light & Power Eugene Bjornstad, Vice Chairman Chugach Electric Association Dave Calvert City of Seward Norm Story Homer Electric Association Dennis McCrohan Alaska Energy Authority Jim Hall Matanuska Electric Association Mike Kelly Golden Valley Electric Association Others Present: Stan Sieczkowski, Alaska Energy Authority Shauna Dean, Alaska Energy Authority John Cooley, Chugach Electric Association Lee Thibert, Chugach Electric Association Brian Hickey, Chugach Electric Association Don Stead, Homer Electric Association Bob Price, Municipal Light & Power Mary Ann Pease, Municipal Light & Power Bradley Lake Project Mana _ient Committee Meeting Minutes Tuesday, January 14, 1997 Page 2 of 9 Wayne Carmony, Matanuska Electric Association Brad Evans, Golden Valley Electric Association Bob Hufman, AEG&T Mike Yerkes, AEG&T Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerritt Steve Haagenson 3. PUBLIC COMMENT Mr. Hufman introduced Mike Yerkes, planning engineer, who was hired by AEG&T and came on board January 8, 1997. There were no other public comments. 4. AGENDA COMMENTS Mr. Bjornstad requested that Item 9.B., Bradley Lake Instability and Control Problems, be added under New Business for discussion and action. Mr. McCrohan asked that Item 9.C., AIDEA/AEA Management Changes, be added under New Business as an informational item. There being no further additions or corrections to the agenda, it was adopted by unanimous consent. 5. APPROVAL OF MEETING MINUTES - NOVEMBER 19, 1996 MOTION: Mr. Bjornstad moved, seconded by Mr. Story, to approve the meeting minutes of November 19, 1996. There being no additions or corrections, a roll call vote was taken, and the minutes were unanimously approved as presented. 6. BUDGET SUBCOMMITTEE REPORT Ms. Pease reported that the Budget Subcommittee had met twice since the last PMC meeting: on December 4, 1996, and on January 13, 1997. Ms. Pease summarized the content of the January 14, 1997 memo contained in the Committee members' packets. She said after lengthy discussion on the disposition and status of Bradley Lake bonds, a motion was made and passed unanimously approving Pete Raiskums to immediately proceed with an audit of the administrative costs incurred by the power administration and to reconcile the debt service schedules with AIDEA. Referencing Mr. Raiskums' memo to the Budget Subcommittee, dated January 13, 1997, Ms. Pease stated that an adjustment of $350,524 needed to be made to reflect the actual recoverable construction costs of the project. Ms. Pease noted that Mr. Saxton would distribute copies of a subsequent memo on that issue. Bradley Lake Project Mane —1ent Committee Meeting Minutes Tuesday, January 14, 199. Page 3 of 9 Budget Subcommittee recommendations submitted for PMC approval: > — That Mr. Raiskums be authorized to perform the preliminary audit of the Bradley Lake Project Funds as of June 30, 1996, in conjunction with Parisena, Stromberg. > That Mr. Saxton's invoices for legal services, in the amounts of $3,045.82 and $2,739.01, be approved and forwarded to AIDEA for payment. > — That Mr. Raiskums be authorized to conduct a feasibility analysis on the ability to perform an audit of AIDEA's and AEA's charges to the Bradley Lake Construction Fund. > That Mr. Saxton be directed to issue a memo to the Bradley Lake Managers requesting that the excess debt service payments be remitted back to the participants. Ms. Pease reported that the Subcommittee had reviewed the FY '98 budget. She said several changes needed to be made by the Subcommittee, and it would be finalized and submitted to the PMC for approval at the February meeting. Ms. Pease said there had been a consensus that the budget for the Junction to Soldotna portion of the line needed to be submitted to the Budget Subcommittee for review. She said Mr. Stead would provide that within the next two weeks. Referencing the summary of financial condition as of January 7, 1997, contained in the Subcommittee's memo, Ms. Pease said the PMC was under budget at this time by approximately $340,000, and at year-end close-out, they would be under by approximately $300,000. With respect to the last recommendation, Mr. Saxton said he had been requested by the Budget Subcommittee to draft a letter to Mr. Randy Simmons requesting that AEA transfer funds to the Bradley PMC in the amount of $350,524. Due to AEA's failure to make the required adjustment at the date of Commercial Operation, the utilities had overpaid debt service, principal, and interest in excess of their contractual obligations under the Section 8 (a) (i) limitation. Mr. Saxton noted a typographical error in the last three lines of the first paragraph of the letter. Ms. Pease clarified that the $350,524 did not include interest. Mr. Saxton said interest would have to be calculated and added to that amount for the total amount due the PMC. MOTION: Mr. Bjornstad moved, and it was seconded by Mr. Calvert, that the Budget Subcommittee report and all recommendations be approved. Mr. McCrohan stated that AEA had not had an opportunity to review the request that AEA reimburse the PMC in the amount of $350,524. He noted his no vote for the record at this time. Aroll call vote was taken, and the motion passed with one nay. Bradley Lake Project Mana _ient Committee Meeting Minutes Tuesday, January 14, 1997 Page 4 of 9 Ue OPERATION AND DISPATCH SUBCOMMITTEE REPORT Mr. Sieczkowski reported that the O&D Subcommittee had met the previous day and had discussed the following topics: Homer Electric was making the necessary preparations to have the fish water bypass intake and the diversion facility cleaned out this spring. The lake will be drawn down below elevation 1,065; some water may have to be pumped to bypass the area in order to supply the required fish water releases. Chugach and Homer Electric are scheduling the draw-down rate and energy deliveries to accommodate the work. The governor studies are progressing. Chugach Electric has developed the historical data and is prepared to submit for PMC approval its proposal that the O&D Subcommittee continue the project. The O&D Subcommittee has scheduled a teleconference following the PMC's action on this item to discuss and schedule the necessary procedures to carry out the work. Mr. Hickey reported that operations are a little ahead of schedule for the May 1, 1997, draw-down. He noted that some of the information that had come to light through the historical data on the governor problems had led them to believe that the instability problem was caused by the transition from speed to deflector mode, causing them to be unable to put the units in deflector mode. At the present time, the Kenai turbine is being operated to meet load. He said the turbine would have been operated 24 hours a day regardless; however, at some point in the spring, they would be forced to continue to operate the turbine because they do not have the ability to control frequency on the Kenai without the deflector mode of the Bradley units should the transmission line open. Mr. Stead reported that maintenance on the units is current with one exception: The dam survey had not been performed in 1996 due to a clerical error. He said the 1996 survey was being performed this week, and another survey (1997 survey) would be conducted in August 1997. There were no other maintenance problems. Mr. Sieczkowski reported that the O&D Subcommittee continued its work on the renewal and replacement list, and that information would be presented to the PMC upon completion. MOTION: Mr. Story moved, seconded by Mr. Bjornstad, to accept the report of the O&D Subcommittee. There being no discussion, a roll call vote was taken and the motion passed unanimously. There was a consensus of the PMC that Item 8.A. be deferred until Mr. Lovas was in attendance to give the report. Agenda Item 9.A. was taken up next out of order. 9. NEW BUSINESS A. Reimbursement for Transfer Trip Scheme - Mr. Story Bradley Lake Project Mana; = ent Committee Meeting Minutes Tuesday, January 14, 1997 Page 5 of 9 Mr. Story distributed backup documentation to support the billing request for reimbursement for transfer trip scheme costs dating back to 1991. Referring to HEA's letter to Tom Stahr dated August 28, 1996, Mr. Story provided the history and sequence of events relating to the request. HEA requested PMC approval for reimbursement to HEA in the total amount of $173,853.28 for the Diamond Ridge to Soldotna and the Soldotna to Quartz Creek transfer trip schemes. Mr. Story also reviewed the HEA and CEA invoices attached to the August 28th letter. He noted that reimbursements in the amount of $35,000 for CEA and $62,000 for HEA for the Soldotna to Quartz Creek scheme had been approved by the BPMC at its August 23rd, 1991 meeting. Mr. Kelly asked if there were any time constraints on the request that would preclude Budget Subcommittee review. Mr. Story said there was not, and he would provide the documentation to the Subcommittee for review. Chair Stahr referred the matter to the Budget Subcommittee for review and recommendation to the PMC. Discussion was heard regarding what percentage of the requested amount would be allocable to construction expense. B. Bradley Lake Instability and Control Problems - Mr. Bjornstad Mr. Bjornstad distributed and explained a motion with attached plan of action to correct the instability and control problems of the Bradley Lake Project. MOTION: Mr. Bjornstad moved, seconded by Mr. Story, that: (1) The Bradley Lake O&D Subcommittee be authorized to request proposals from consulting engineers to perform Phases I, Il, and Ill of the action plan entitled "Action Plan for Correction of Bradley Lake Project Instability and Control Problems." (2) Funds in an amount not to exceed $145,000 be allocated to Phases |, Il, and Ill of the plan from the remaining Bradley Lake Construction Funds, and that the O&D Subcommittee provide regular interim reports to the BPMC of progress in completing the action plan. (3) That the O&D Subcommittee, after technical evaluation of the proposals, be authorized to award task order contracts in an amount not to exceed $145,000 in the aggregate to consulting firms, based on qualifications and costs, to complete Phases I, Il, and Ill of the action plan, and that final reports be submitted to the BPMC no later than July 31, 1997. (4) And that upon completion of Phases |, Il, and Ill, the O&D Subcommittee will return to the BPMC with findings and a revised action plan detailing the steps required to complete the remaining tasks. Bradley Lake Project Manz ient Committee Meeting Minutes Tuesday, January 14, 1997 Page 6 of 9 Mr. Bjomstad reviewed the action plan with the PMC. Discussion was heard, and it was agreed by unanimous consent that Item II on page 1 be revised to read: "/Z Resolve the instability problem." Further discussion was heard regarding how this project would impact the Construction Funds. Mr. McCrohan stated that although AEA would support the concept of the study, he would have to register his no vote at this time as AEA would have to review whether usage of the Construction Funds was allowable. He pointed out that there was currently only about $700,000 available in the Construction Fund, and the current requests from Homer Electric Association for reimbursement of $350,000 would far exceed the available funds. He suggested that the $2.3 million set-aside for construction items that had been approved by the PMC about a year ago be reassessed and reprioritized in order to obtain additional funds for this project. At the Chair's request, Mr. Saxton advised that Mr. McCrohan's no vote would effectively veto the motion because the construction process is under the State's control. He explained that the remedy on the construction items is not a voting right, it was that the State is obligated to pay 50 percent of construction costs. In other words, the BPMC does not have the right to spend construction funds without Authority agreement. Discussion was heard regarding whether the BPMC could approve the engineering phase to proceed at this time, as time was of the essence in correcting the instability and control problems of the project. Mr. Saxton advised that the BPMC would run the risk of having to pay 100 percent of the costs as utility costs instead of the 50 percent as construction costs. Mr. Kelly suggested that the BPMC vote on the motion contingent upon receiving approval from AEA. Mr. Bjormstad said if AEA declined to provide approval, the BPMC could fund the project with O&M funds. Further discussion was heard regarding alternative solutions. The question was called, and a roll call vote was taken. The motion passed with one nay. MOTION: Mr. Kelly moved, seconded by Mr. Story, that AEA be directed to determine whether the study should be deemed Construction Funds, and further, that regardless of the AEA's determination, that the study proceed with the understanding that should the AEA determine that it is not a construction fund expense, the BPMC will fund the study from FY '97 O&M budget funds. In response to Mr. Calvert, Mr. Kelly said if AEA declined the usage of the Construction Fund, the project would still be pursued. Mr. McCrohan said he would expect to have a decision within a week and a half. He reminded the Committee that there were currently three separate actions requesting reimbursement from the Construction Funds. Discussion was heard regarding the funding priority that would be given to the study. To ensure that the record was clear, Mr. Saxton advised that if the BPMC proceeded to fund the project with FY ‘97 budget funds, the BPMC was doing so under protest, that they considered this an emergency need, but they would preserve their rights to pursue the matter of funding with AEA. In other words, the BPMC does not concede any legal issues; they have only agreed to advance Bradley Lake Project Mana _jent Committee Meeting Minutes Tuesday, January 14, 1997 Page 7 of 9 funds from the O&M budget so that the project would not be delayed and the work could proceed on an interim basis. Mr. Kelly moved, with the approval of his second, to amend his motion to include that should the AEA determine that it is not a construction fund expense, the BPMC would fund the study from FY ‘97 O&M budget funds under protest. There being no further discussion, the question was called and a roll call vote was taken. The amended motion passed unanimously. With respect to Agenda Item No. 6, Mr. Calvert asked for clarification of the Committee's earlier action regarding Mr. Saxton's letter to the Bradley Lake managers requesting that the excess debt service payment be remitted back to the participants. Chair Stahr responded that the Board had approved the letter being sent to Mr. Simmons, not that the matter should be referred to the Budget Subcommittee. Mr. Calvert felt that a letter to AIDEA should also be drafted requesting a refund in the amount of $350,524. MOTION: Mr. Calvert voted to reconsider the motion to accept the report of the Budget Subcommittee. Seconded by Mr. Story. Discussion was heard regarding the form of the motion and Mr. McCrohan's options with respect to the reimbursement matter. There being no further discussion, the question was called on the motion to reconsider, and a roll call vote was taken. The motion passed unanimously. 6. BUDGET SUBCOMMITTEE REPORT (On Reconsideration) Agenda Item No. 6 was back on the floor for reconsideration at this time with respect to the following Budget Subcommittee recommendation: > That Mr. Saxton be directed to issue a memo to the Bradley Lake managers requesting that the excess debt service payment be remitted back to the participants. MOTION: Mr. Bjornstad moved, seconded by Mr. Kelly, to amend the motion that the Budget Subcommittee's report be accepted by the BPMC with the exclusion of the above-mentioned recommendation to send the memo. Mr. McCrohan said he would still have to vote no as the Committee's meeting notes state that it would be recoverable construction costs. At Chair Stahr's request, Mr. Saxton advised that this was not a veto-able vote. There being no further discussion, the question was called, and a roll call vote was taken on the motion to amend. The motion passed with one nay. Bradley Lake Project Mana: ent Committee Meeting Minutes Tuesday, January 14, 1997 Page 8 of 9 The question was called on the main motion to approve the Budget Subcommittee's report as amended, and a roll call vote was taken. The main motion passed as amended with one nay. 9. NEW BUSINESS (CONTINUED) C. AIDEA/AEA Management Changes - Mr. McCrohan Mr. McCrohan reported that at its December Board meeting, the Acting Executive Director, Mr. Randy Simmons, was appointed Executive Director of AIDEA. Mr. McCrohan advised that Mr. Dan Beardsley, who had handled the Authority's insurance matters and contract agreement work with the Bradley group had resigned from the Authority. However, he would continue working with the Authority on a contract basis for six to nine months and would be available to work on the Bradley matters and would continue to be the focal point for agreements and insurance issues. 8. OLD BUSINESS A. Spinning Reserves Update Mr. Lovas reported that the ASCC Reliability Criteria Committee was continuing its work on the economic evaluation of the 70-percent response to spin requirement. He said they expected to have the initial results on the impact to the Railbelt to the BPMC for review by mid-February. Mr. Lovas said the ASCC/RCC had completed the draft scope of engineering services required to evaluate the specifications, requirements, and method of installation of a demand dynamic system monitor throughout the Railbelt. He added that the monitor would provide verification of unit responsiveness. Mr. Lovas said Mr. Stahr had requested the ASCC and the individual utilities to do a review of an economic dispatch of a system using a frequency-based reserve policy. The ASCC/RCC had reviewed the request and had some questions regarding the implementation and methodology. Mr. McConnell had agreed to forward the ASCC/RCC's questions to the authors of the policy for clarification on some aspects of the operation of the system model that is used to predict the frequency response impact of various contingencies. Mr. Lovas said once the ASCC/RCC received the feedback, they would consider the matter as a potential alternative during a full session of the ASCC. Mr. Lovas advised that CEA had been requested by Mr. Stahr of ML&P to investigate Siemans, the manufacturer and provider of the new SCADA system being installed, and to look at the availability and applicability of a system model. The ASCC had taken this request under advisement, and no action has yet been taken. Mr. Lovas reported that proposed bylaw changes had been submitted to the NAERC that would impact the various regions' involvement in the Regional Coordination Councils. The suggested revisions to the bylaws included mandatory membership in regional councils and mandatory adoption of and compliance with operating and reliability standards. The suggested revisions had been approved by the NAERC Board. ‘ Bradley Lake Project Mana _1ent Committee Meeting Minutes Tuesday, January 14, 1997 Page 9 of 9 Mr. Lovas said the RCC was tasked with evaluating the approved bylaw changes and reporting back to the ASCC with a recommendation. The RCC had scheduled an all-day meeting on Friday, January 17th, to evaluate the NAERC bylaw changes and the potential impacts to reliability standards and operating criteria in the Railbelt. He said the RCC would prepare a report and provide its recommendations to the ASCC at the March 3rd meeting in Juneau. 10. COMMITTEE MEMBER COMMENTS Mr. Saxton advised Ms. Pease that she needed to act on approving the budget prior to April 2, 1997. Chair Stahr advised that a brief RUG meeting would be held before the IPG commenced. There were no other comments. A. Next Meeting Date The next regular meeting of the Bradley Lake Hydroelectric Project Management Committee was scheduled for Tuesday, March 25, 1997, at 10:00 a.m. in the Commission Room of ML&P. 11. ADJOURNMENT MOTION: Mr. Calvert moved, seconded by Mr. Story, to adjourn. There being no objection and no further business of the Committee, the meeting was adjourned at 11:15 a.m. Br: Tom Stahr, Chairman ATTEST: Alaska Energy Authority, Secretary YK KKK KKK KK KKK KK KK KKK KKK KK KKK KOK KOK KK OK KKK KKK OK KOKORO KR RAR ROKR RR RR RRR RRR RR RRR RR RRR nn TOTAL 4M 28S PAGES: 10 JODO OOOO XX KX KK KK KKK KK KK KK KK KK OK KKK KK KKK KKK KKK KKK KK KKK KK KKK KK x P. 01 x x TRANSACTION REPORT x x OMT TTT IT TaN JAN-28-97 WED 02:00 PM = x x x x SEND (IM) : x k DATE START — RECEIVER TX TIME PAGES TYPE NOTE M# DP x \—_—_———— OO I DTT J x JAN-29 01:56 PM 95617683 4’ 28" 10 SEND (M) OK 100 x k k x x x x x X k x ALASKA INDUSTRIAL DEVELOPMENT iF AND EXPORT AUTHORITY => ALASKA AE ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 Facsimile Transmittal TO: Ms. Rita Delatorre Company Parisena Stromberg & Co, Fax #: UM) eazy Weal geal MLM MMOLE MMIC IIL MLILON I IIU We From: Shauna Dean / Elaine McCaimbridge Date: January 29, 1997 Time: 2:00 p.m, Number of pages including cover page: 10 elotorve ey on oy Stew ae +. ox ol aoe a ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY <— ALASKA @E— ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 269-3000 FAX 907 / 269-3044 Facsimile Transmittal TO: Ms. Rita Delatorre Company Parisena Stromberg & Co. Fax #: ECG 7) |) Wisse 9 76.65 Vel MEELIS UTE eC From: Shauna Dean / Elaine McCaimbridge Pest secant TTC CTC Time: BZ’: OO ip emu MULT LIUEECUEEU EVEL IUEE ERATIVE ELLER Number of pages including cover page: 10 Transmittal Contents: Comments: Attached are the meeting minutes for the BPMC meeting that was held on January 14, 1997. These minutes are still in draft form, as they won't be signed until the next meeting in March. If you have any questions, please call. Thanks — Shauna. 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, (907) 269-3000. H/all/cheryl/fax/one.doc