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