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HomeMy WebLinkAboutBradley Lake PMC Meeeting-Tues., June 21, 2005 2BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES 813 W. Northern Lights Boulevard Anchorage, Alaska Tuesday, June 21, 2005 — 10:00 a.m. 3 CALL TO ORDER Chair Haagenson called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:00 a.m. on Tuesday, June 21, 2005, 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 Brenda Fuglestad. The following members were present: Steve Haagenson Golden Valley Electric Association Joe Griffith Chugach Electric Association Bradley Janorschke Homer Electric Association Wayne Carmony Matanuska Electric Association (teleconference) Jim Posey Anchorage Municipal Light & Power Dave Calvert City of Seward Art Copoulos Alaska Energy Authority 3. PUBLIC ROLL CALL Mike Cunningham, Chugach Electric Association Linda MacMillan, AEA and AIDEA Ron Saxton, AterWynne John Cooley, Chugach Electric Association Bob Price, Anchorage Municipal Light & Power Ed Ruebling, Anchorage Municipal Light & Power Brian Hickey, Chugach Electric Association Lee Thibert, Chugach Electric Association Henri Dale, Golden Valley Electric Association Bob Day, Anchorage Municipal Light & Power Gerald Winkler, Homer Electric Association David Burlingame, Electric Power Systems Jim Walker, Matanuska Electric Association (teleconference) Don Zoerb, Matanuska Electric Association (teleconference) Maynard Smith, Homer Electric Association (teleconference) Bradley Lake PMC Meeting June 21, 2005 Page 2 of 4 4. PUBLIC COMMENT There were no public comments. 5; AGENDA COMMENTS There were no agenda comments. 6. APPROVAL OF MEETING MINUTES — March 31, 2005 The meeting minutes of March 31, 2005, were approved as presented with the addition of Art Copoulos making a change to include the addition of the statement “Costs associated with JAA formation (of Four Dam Pool) did not run through the AEA accounting records.” 6A. OLD BUSINESS Motion: To bring back table Item 7E from the March 31, 2005 Committee Meeting; HEA O&M Contract extension pending legal review of the Contracts of VA Tech and FUJI. A discussion ensued and the Motion was moved to table and seconded by Mr. Griffith allowing for an evergreen roll-over of the existing contract. Motion: Mr. Copoulos moved to have the PMC do a review of the five year O&M Contract and convene to discuss recommendations contingent to its approval and renewal. There being no further discussion, the question was called. Seconded by Mr. Brad Janorschke. A raised hands vote was taken and the Motion was unanimously approved. Te NEW BUSINESS 7A. Replacement for Don Stead’s Position Mr. Brad Janorschke explained the Transition Plan in effect is for HEA to continue managing the Project involved hiring EPS as the Project Manager for the duration of the transition or until HEA is in a position to relieve them of that responsibility. Mr. David Burlingame is EPS’ designated Project Manager and will remain in charge of the project for the interim. The governor project is currently being run as follows: Maynard Smith is Contract Administrator monitoring any contract appliance issues with VA Tech and with EPS; Gerry Winkler is Power Production Manager and is currently working closely with Don Stead via email. Gerry will be filling this position until the new Generation Manager is positioned in mid-July. Mr. Copoulos informed this committee that the transition process is running smoothly. The weekly meeting of the O&D Committee and the Bradley Lake Governor Subcommittee is keeping communication open and the governor project progressing Bradley Lake PMC Meeting June 21, 2005 Page 3 of 4 well. The Bradley Lake Governor Subcommittee was set up strictly as advisory to the BPMC to help guide Homer’s efforts. 7B. Detuning the Rotor Chair Haagenson asked to attach this memo to the minutes to discuss the VA Tech serviceman not grinding the bucket on the runners as commissioned. Mr. Winkler explained that the first serviceman sent by VA Tech was not experienced in the grinding process but a second person sent over was in fact a grinding supervisor with prior grinding experience. He provided the correct grinding depth profiles and templates were made to allow for quality grinding. Mr. Winkler gave an update on the detuning process. Currently runner AO is detuned and signed off of decoupling. It is currently on Unit 1 and back in service. Currently runner SO is in LA for crack repair and stress relief. Runner BO, which is currently on Unit #2, is being removed during this two week outage and due to be detuned towards the end of this week. Mr. Winkler described the detuning process to the committee and added that welding is now being done on-site with stress relief being done in LA. Both runners will have been detuned after this week and a third runner weld and stress repaired but not detuned. This third runner is a back-up spare in case of another event. Chair Haagenson asked about the micro-goose runners and Mr. Day informed that they are about eighteen months away. He went on to say that they have started the 45-day review for the governor project. Governor replacement is scheduled to start November 1° depending on water level and other factors involved. There will be a 55-day outage for the first unit and a 45-day outage for the second unit. It will take from six to eight months to have the governors in place with the detuned runners operating until that time. 7C. Bradley Lake Project Transition Plan This topic was covered under section 7A above so Mr. Janorschke reiterated that the Transition Plan currently in place is going well. The O&D Committee and the Bradley Lake Governor Subcommittee are working well together to ensure the project continues to run smoothly during this time. 7D. Revised R&C Transfer Motion: Approve June 2005 transfer from the Revenue Fund to the R&C Fund in the amount equal to the amount budgeted in the FY2005 Project Budget of $1,581,725.00 and for the R&C Fund balance to be greater than $5,000,000 after the transfer estimated to be $5,994,000.00. This is allowed for in sections 506.1 (4) and 509.3 of the “Bond Resolution.” This Motion supersedes the Motion made at Bradley Lake PMC Meeting June 21, 2005 Page 4 of 4 the March 31, 2005 meeting under Item C. Seconded by Mr. Jim Posey. A raised hands vote was taken and the Motion was unanimously approved. Mr. Cunningham reiterated how the BPMC authorized the transfer of the necessary amount to bring the R&C Fund back up to five million dollars, but built into the Budget were some governor project payments that have not occurred and rather than return them in the form of a Fiscal Year Surplus, transfer those excess funds to the R&C Fund and hold them pending payment for the milestone payments on the governor project. He went on to say that the Budget Subcommittee had discussed this issue and recommended approval of the Motion. 8. COMMITTEE REPORTS 8A. Operators Report Mr. Day reiterated that Homer’s crew is doing a great job and expects that dates concerning the governor project will be met. 8B. Next Meeting Date The next meeting date is at the call of the Chair. The next meeting will be to discuss the Operation Agreement. All comments pertaining to the Operation Agreement and Performance Measures are to be emailed to the Chairman. 9. ADJOURNMENT The meeting was adjourned at 11:12 a.m. BY: Steve Haagenson, Chairman ATTEST: Alaska Energy Authority, Secretary « 5 May® 7-95 08:55am = From-GVEA Administration 9074585951 7-933 P.002/007 GOLDEN VALLEY ELECTRIC ASSOCIATION, INC. Interoffice Memorandum May 9, 2005 TO; Steve Haagenson, Ron Saxton FROM: Henri Dale RE: Highlights of Jast months BLH O&D mtg. A meeting of the BLH O&D Committee was held on May 5". 1) The tuning for the old runner.hit a small snag. The “tuner” told us how much weight needed to be removed from each bucket, but then told us that the metal removal was something we had to do. How do you remove 3 kg of metal? Weigh the floor sweepings?. Apparently they estimate removal by measuring the reduction in diameter of the grinding wheel. After some discussion with VA Teck, they well send another person with experience and some profile drawings to supervise the grinding. 2) Unit one will bs down for about 3 weeks to repair a low voltage buss that was damaged during a fault due to water leakage near a penetration. The other penetrations will be checked, 3) EPS finally got the governor model from VA Teck ta run simulations against the rail belt system. They noted that the model did not have a divider mode, documentation, synchronous condenser mode and needle scheduling. They say initial runs show the govemor responding poorly in the system. They will need a week to verify the base case and do tuning. EPS says it’s possible to be ready in time for the governor change out, but it’s not likely due to the incompleteness of the package. Originally we were to have this model last August so that we could do testing before they built the governor. The committee does not want to accept the hardware until we have success with the simulations. F480 « , Way-g 7-05 08:56am = From-GVEA Administration 9074585951 7-933 = P.003/007 4) Discussed postponing the governor change out until Nov 1. We don’t want to take a chance installing (and accepting) new govemors until they can show that the model works in the interconnected system. Another month delay up front will cause the tail of the project to encroach into our “spill” season when we need both units to control the rising water. Spill after Nov 1 isn’t likely (storms more likely to dump snow which is held in the mountains than rain which runs into the pond). 5) Don Stead relayed to us that his last day is May 13" (next week) when he will take a position in Minnesota. This was the first any of us heard about this. HEA is apparently recruiting for his position. In the mean time, he had Jerry Winkler who will be doing Don’s job on an interim bases on the teleconference. Jerry has been the Nikiski (Soldotna) operator for 15 years. In his job duties as a bargaining operator, he has been involved the governor upgrade for that combustion turbine. He has operated a few times at Bradley but claims about a 50% knowledge level of the plant (whatever that means, and why was he allowed to operate it). He has no project management experience. The committee expressed reservations on getting a new person up to speed if VA Tech insists on changing govemors this month. It is likely that VA Tech won't be ready if the modeling issue is any indication. We also discussed an interim project manager. Brian Hickey says he’s just started his busy season and would not have time. Don says he would not be able to continue to do this on the side at his new job. A consultant (like Dave Burlingame of EPS) who has been following this project and has much of the historical back ground) is a possibility. The committee asked Don to have HEA formally respond with a transition plan. We also asked Don to put into writing as much as possible on the status of the project for the new person when he comes on board. Don was informed that the utilities are watching HEA's performance on this project as a reflection of their ability to perform under their Operations and Maintenance Agreement. 6) There will be another meeting Tuesday to get an update on the model, the transition plan, and whether or not to postpone to Nov 1. F-490 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES 813 W. Northern Lights Boulevard Anchorage, Alaska Tuesday, June 21, 2005 — 10:00 a.m. 1. CALL TO ORDER Chair Haagenson called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:00 a.m. on Tuesday, June 21, 2005, 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 Brenda Fuglestad. The following members were present: Steve Haagenson Golden Valley Electric Association Joe Griffith Chugach Electric Association Bradley Janorschke Homer Electric Association Wayne Carmony Matanuska Electric Association (teleconference) Jim Posey Anchorage Municipal Light & Power Dave Calvert City of Seward Art Copoulos Alaska Energy Authority 3. PUBLIC ROLL CALL Mike Cunningham, Chugach Electric Association Linda MacMillan, AEA and AIDEA Ron Saxton, AterWynne John Cooley, Chugach Electric Association Bob Price, Anchorage Municipal Light & Power Ed Ruebling, Anchorage Municipal Light & Power Brian Hickey, Chugach Electric Association Lee Thibert, Chugach Electric Association Henri Dale, Golden Valley Electric Association Bob Day, Anchorage Municipal Light & Power Gerald Winkler, Homer Electric Association David Burlingame, Electric Power Systems Jim Walker, Matanuska Electric Association (teleconference) Don Zoerb, Matanuska Electric Association (teleconference) Maynard Smith, Homer Electric Association (teleconference) Bradley Lake PMC Meeting June 21, 2005 Page 2 of 4 4. PUBLIC COMMENT There were no public comments. 5. AGENDA COMMENTS There were no agenda comments. 6. APPROVAL OF MEETING MINUTES — March 31, 2005 The meeting minutes of March 31, 2005, were approved as presented with the addition of Art Copoulos making a change to include the addition of the statement “Costs associated with JAA formation (of Four Dam Pool) did not run through the AEA accounting records.” 6A. OLD BUSINESS Motion: To bring back table Item 7E from the March 31, 2005 Committee Meeting; HEA O&M Contract extension pending legal review of the Contracts of VA Tech and FUJI. A discussion ensued and the Motion was moved to table and seconded by Mr. Griffith allowing for an evergreen roll-over of the existing contract. Motion: Mr. Copoulos moved to have the PMC do a review of the five year O&M Contract and convene to discuss recommendations contingent to its approval and renewal. There being no further discussion, the question was called. Seconded by Mr. Brad Janorschke. A raised hands vote was taken and the Motion was unanimously approved. 7. NEW BUSINESS 7A. Replacement for Don Stead’s Position Mr. Brad Janorschke explained the Transition Plan in effect is for HEA to continue managing the Project involved hiring EPS as the Project Manager for the duration of the transition or until HEA is in a position to relieve them of that responsibility. Mr. David Burlingame is EPS’ designated Project Manager and will remain in charge of the project for the interim. The governor project is currently being run as follows: Maynard Smith is Contract Administrator monitoring any contract appliance issues with VA Tech and with EPS; Gerry Winkler is Power Production Manager and is currently working closely with Don Stead via email. Gerry will be filling this position until the new Generation Manager is positioned in mid-July. Mr. Copoulos informed this committee that the transition process is running smoothly. The weekly meeting of the O&D Committee and the Bradley Lake Governor Subcommittee is keeping communication open and the governor project progressing Bradley Lake PMC Meeting June 21, 2005 Page 3 of 4 well. The Bradley Lake Governor Subcommittee was set up strictly as advisory to the BPMC to help guide Homer’s efforts. 7B. Detuning the Rotor Chair Haagenson asked to attach this memo to the minutes to discuss the VA Tech serviceman not grinding the bucket on the runners as commissioned. Mr. Winkler explained that the first serviceman sent by VA Tech was not experienced in the grinding process but a second person sent over was in fact a grinding supervisor with prior grinding experience. He provided the correct grinding depth profiles and templates were made to allow for quality grinding. Mr. Winkler gave an update on the detuning process. Currently runner AO is detuned and signed off of decoupling. It is currently on Unit 1 and back in service. Currently runner SO is in LA for crack repair and stress relief. Runner BO, which is currently on Unit #2, is being removed during this two week outage and due to be detuned towards the end of this week. Mr. Winkler described the detuning process to the committee and added that welding is now being done on-site with stress relief being done in LA. Both runners will have been detuned after this week and a third runner weld and stress repaired but not detuned. This third runner is a back-up spare in case of another event. Chair Haagenson asked about the micro-goose runners and Mr. Day informed that they are about eighteen months away. He went on to say that they have started the 45-day review for the governor project. Governor replacement is scheduled to start November 1‘ depending on water level and other factors involved. There will be a 55-day outage for the first unit and a 45-day outage for the second unit. It will take from six to eight months to have the governors in place with the detuned runners operating until that time. 7C. Bradley Lake Project Transition Plan This topic was covered under section 7A above so Mr. Janorschke reiterated that the Transition Plan currently in place is going well. The O&D Committee and the Bradley Lake Governor Subcommittee are working well together to ensure the project continues to run smoothly during this time. 7D. Revised R&C Transfer Motion: Approve June 2005 transfer from the Revenue Fund to the R&C Fund in the amount equal to the amount budgeted in the FY2005 Project Budget of $1,581,725.00 and for the R&C Fund balance to be greater than $5,000,000 after the transfer estimated to be $5,994,000.00. This is allowed for in sections 506.1 (4) and 509.3 of the “Bond Resolution.” This Motion supersedes the Motion made at Bradley Lake PMC Meeting June 21, 2005 Page 4 of 4 the March 31, 2005 meeting under Item C. Seconded by Mr. Jim Posey. A raised hands vote was taken and the Motion was unanimously approved. Mr. Cunningham reiterated how the BPMC authorized the transfer of the necessary amount to bring the R&C Fund back up to five million dollars, but built into the Budget were some governor project payments that have not occurred and rather than return them in the form of a Fiscal Year Surplus, transfer those excess funds to the R&C Fund and hold them pending payment for the milestone payments on the governor project. He went on to say that the Budget Subcommittee had discussed this issue and recommended approval of the Motion. 8. COMMITTEE REPORTS 8A. Operators Report Mr. Day reiterated that Homer’s crew is doing a great job and expects that dates concerning the governor project will be met. 8B. Next Meeting Date The next meeting date is at the call of the Chair. The next meeting will be to discuss the Operation Agreement. All comments pertaining to the Operation Agreement and Performance Measures are to be emailed to the Chairman. 9. ADJOURNMENT The meeting was adjourned at 11:12 a.m. BY: LEZZA ae Steve genson, Chairman ATTEST: Zi Sx Alaska Energy ority, Secretary