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HomeMy WebLinkAboutBPMC Meeting - March 3, 1989 1BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE March 3, 1989 FILE COPY pe Chairman Kelly called the Bradley Lake Project Management Committee to order at 10:10 a.m. in the Training Room of Chugach Electric Association to conduct the business of the Committee per the agenda and public notice. 1. CALL TO ORDER ROLL CALL The roll call was taken and a quorum was established. In attendance were the following: Designated Representative Designated Alternate Representing Donald L. Shira Alaska Power Authority James F. Palin Myles C. Yerkes Matanuska Electric Association Dave Highers Tom Lovas Chugach Electric Association Kent Wick Homer Electric Association Michael Kelly Robert Hansen Golden Valley Electric Association Thomas R. Stahr John Cooley Municipal Light and Power E. Paul Diener City of Seward Representatives Absent Alternates Absent Representing Bob Peirson City of Seward Sam Mathews Homer Electric Association Brent N. Petrie Alaska Power Authority It was noted for the record that in the absence of Messrs. LeResche and Petrie, Mr. Shira was the designated Power Authority representative for today’s PMC meeting. It was also noted that Denise Burger, Alaska Power Authority, would serve as recording secretary for this meeting. Others Present Representing — Ron Saxton Golden Valley Electric Association Susan White Alaska Power Authority Dick Emerman* Alaska Power Authority Afzal Khan Alaska Power Authority Denise Burger Alaska Power Authority Marcey Rawitscher Alaska Power Authority *Present from 12:10 p.m. to conclusion of meeting. PMC Meeting Minutes (MARBRAD) Page 2 of 7 March 3, 1989 3. PUBLIC COMMENT There being no public comment, Chairman Kelly proceeded to agenda item 4. 4. MODIFICATION OF AGENDA No modifications to the agenda were made at this time; however, it was noted later that Ms. White would address the PMC relative to Executive Order No. 75 after agenda item 8., Review of Project Status. 5. APPROVAL OF MINUTES January 20, 1989 Mr. Yerkes noted that page 2, agenda item 7., Technical Coordinating Committee Report, should be changed to reflect that the TCC met with PTI, rather than SEI. The minutes of the January 20, 1989 meeting were approved with Mr. Yerkes’ correction by acclamation. FINANCE COMMITTEE REPORT Ms. Rawitscher reported that all necessary information has been provided to R.W. Beck. Ms. Rawitscher will be in Seattle, Washington on March 13-14, 1989 on other business and will meet with R.W. Beck during that time. Development of the feasibility report by R.W. Beck is anticipated to take 2-3 months and is required prior to bond issuance. Ms. Rawitscher said that Mr. Seagraves would like to set up a Finance Team meeting with Messrs. Palin, Kelly and Highers. There being no objection to this, Ms. Rawitscher was directed to set up this meeting. Although, interest rates currently are not favorable (i.¢., early financing is not desirable at this time) Ms. Rawitscher said that the PMC should be in a position to issue bonds if interest rates suddenly decrease. According to Ms. Rawitscher, some analysts believe that interest rates will continue upward during 1989 and then come down at the end of the year. The Bond Buyer Index (BBI) went up 80 basis points in 10 days and then the BBI went down. Ms. Rawitscher noted that interest rates are currently very volatile, but in an up mode. Fall of 1989 is the earliest time that bond issuance is anticipated; moreover, historically November and December have not been favorable months to issue bonds due to the number of bond issuances flooding the market at this time which results in higher interest rates. 7. TECHNICAL COORDINATING COMMITTEE REPORT Mr. Yerkes reported that Power Technologies, Inc. (PTT) made a Phase II, Stability and Reliability, presentation to the TCC. It was determined that additional work is required on the preliminary PTI study and another meeting was scheduled with PTI and the TCC. The TCC is currently reviewing the bids for the SCADA system. Lowbid for the SCADA system was received from a firm with questionable past performance which necessitates further bid evaluation. PMC Meeting Minutes (MARBRAD) Page 3 of 7 March 3, 1989 8. REVIEW OF PROJECT STATUS Mr. Shira noted that Messrs. LeResche and Eberle are currently in Japan and Korea meeting with Fuji regarding Fuji’s turbine subcontractor, Hyundai. Mr. Shira reported that Messrs. LeResche and Eberle are negotiating the release of materials that have been locked up due to a labor strike by Hyundai. Stone and Webster Engineering Corporation (SWEC) informed Mr. Shira that the labor strike has been settled; however, the float in the schedule for this item has been utilized. The Tunnel Boring Machine (TBM) is on site in the tunnel and the system is currently being reviewed. The TBM is anticipated to be ready for drilling in 7-10 days. Enserch is installing the steel penstock sections at this time and the powerhouse contractor, HC Price, is beginning their mobilization. The transmission line bids are currently being evaluated. The Engineer’s Estimate was $13.8 million; whereas, the low bid presented by Frontier-Marenco (i.e., a Canadian-Anchorage joint venture) was $16.7 million. The second lowest bid came in at $17 million by Newberry and Associates. Mr. Yerkes expressed concern over the high bids on the transmission line construction contract. Mr. Wick noted that the per mile cost for labor and materials for the HEA portion of the transmission line is $132,000, compared to $432,000 for this bid. Mr. Wick commented that the terrain is more difficult on the southern portion of Kachemak Bay and Fox River; however, the question remains as to whether or not the recent bid solicitation is overdesigned with steel versus wood poles. EXECUTIVE ORDER NO. 75 AND DONLEY’S CONCURRENT RESOLUTION NO. 1 Ms. White distributed copies of: House Special Concurrent Resolution No. 1, Disapproving Executive Order No. 75, February 27, 1989 memorandum from Teresa Cramer, Legislative Counsel, to Representative Donley, Chairman, House Labor and Commerce Committee, subject: Constitutionality of Executive Order No. 75 (Transferring programs to the Alaska Power Authority), and Executive Order No. 75. Ms. White reported that Executive Order No. 75 will go into effect March 9, 1989 if it is not blocked by Representative Donley’s House Special Concurrent Resolution No. 1, which if adopted by the Sixteenth Legislature, would disapprove Executive Order No. 75. Ms. White said that the purpose of the Executive Order is threefold: To change the name of the Alaska Power Authority to the Alaska Energy Authority, To transfer administration of the Power Development Revolving Loan Fund to the Alaska Power Authority, and To establish the Bulk Fuel Revolving Loan Fund in the Alaska Power Authority. Ms. White said that the central issue regarding the Executive Order and Resolution is Legislative versus Executive branch prerogative in the expenditure and appropriation of funds. Ms. White noted that Representative Donley will withdraw his Resolution if a concurrent bill states that the prerogative will transfer to the legislative branch on future funds. Ms. White asked that the PMC express some form of support for the Governor’s Executive Order No. 75, as written. Mr. Highers motioned, seconded by Mr. Stahr, that the PMC adopt a resolution expressing support for Executive Order No. 75 and that PMC Meeting Minutes (MARBRAD) Page 4 of 7 March 3, 1989 Ms. White be directed to prepare such a resolution during the remainder of today’s PMC meeting. The motion passed by acclamation. It was noted that the resolution would be provided to the Governor, House of Representatives and Alaska Senate. 9. OLD BUSINESS Status Report on Rural Electrification Administration Approvals Mr. Saxton reported that he and Mr. LeResche met with REA representatives in Washington, D.C. and that there are two sides to the REA review process: 1) Review of Legal documents Mr. Mitchell has requested an opinion from legal counsel (i.c., the Alaska Attorney General’s Office) on the application of the APUC exemption to the three contracts. 2) Review of Prudency REA staff has stated that they will recommend approval of the various contracts for all of the cooperatives to the REA Assistant Administrator. Mr. Saxton said that the executed letter agreement and HEA agreement need to be provided to REA. Mr. Saxton also noted that this item may be removed from future PMC agendas as the process is virtually complete relative to securing REA approvals. 10. NEW BUSINESS Chairman Kelly said that he had directed Mr. Saxton to draft a document identifying and outlining issues requiring the PMC’s attention during 1989 (reference February 27, 1989 memorandum to the Bradley PMC from Mr. Saxton regarding Issues for Discussion at BPMC Meeting). The issues outlined in Mr. Saxton’s memorandum were reviewed: insurance; budget process, funds and payment obligation; tax treatment of Bradley PMC; and FERC license fee issue. Mr. Saxton noted that there are two timelines relative to the PMC addressing these issues; 1) the last date is prior to project operation, and 2) an earlier date is prior to issuance of bond resolution. Mr. Saxton noted that timeline 2 would simplify how these items are handled. Mr. Saxton suggested that small committees be established to address each of these areas. Mr. Stahr noted that an additional item of primary importance is that the Bradley Lake Project be property built. The following issues were discussed and Committees organized: Issue No. 1, Project Monitor It was noted that this function is being performed by the Configuration Control Committee Representative Yerkes and that issues will be brought back from the CCC to the PMC as they arise for decision making. Issue No. 2, Insurance Committee Brent Petrie, APA, Chairman Kent Wick, HEA PMC Meeting Minutes (MARBRAD) March 3, 1989 Robert Hansen, GVEA Mike Cunningham, CEA Ron Saxton, GVEA, resource as required Issue No. 3, Budget Committee Marcey Rawitscher, APA Tom Klinkner, Wohlforth, Argetsinger & Brecht Dennis Lapp, CEA Cathy Jacobs, ML&P Ron Saxton, GVEA, resource as required Issue No. 4, Tax Committee Pending recommendation by Messrs. Petrie and Saxton relative to pursuing tax exemption. Issue No. 5, FERC Licensure Pending briefing/recommendation by Messrs. Petrie and Saxton. Issue No. 6, Operating and Dispatch Agreement Committee Donald L. Shira, APA John Cooley, ML&P Marv Riddle, GVEA Tom Lovas, CEA Sam Mathews, HEA Page 5S of 7 The consensus was for PMC legal assistance to be provided to each of the above committees by Mr. Saxton, as required. It was noted that changing or expanding these committees will remain flexible as required. It was determined that it was up toeach Committees to elect its chairman and individual to report a brief update to the PMC at each meeting. Chairman Kelly charged each committee with preparing a timetable of their objectives and report back to the PMC at their next meeting. It was anticipated that each committee would eventually present a menu of options and recommendations to the PMC. PMC Meeting Minutes (MARBRAD) Page 6 of 7 March 3, 1989 12. OTHER BUSINESS Schedule Next Meeting a. Date April 6, 1989 b. Location Training Room, CEA c. Time 10:00 a.m. EXECUTIVE ORDER NO. 75 (Continued) Ms. White read a Resolution of the Bradley Lake PMC in Support of Executive Order No. 75. There were no objections expressed to the language and Mr. Saxton said that he agreed with the language in the resolution. Chairman Kelly noted that the PMC had approved this resolution proforma as Resolution 89-4. 10. NEW BUSINESS Mr. Emerman reviewed the progress on the Southern Intertie study. Mr. Emerman said that estimates of the measures which are necessary to run Bradley Lake at capacity, with and without the Southern Intertie, are required. The costs associated with each of those scenarios are also required. Mr. Emerman said that it needs to be determined what is required with and without the intertie to provide satisfactory operating conditions for Bradley Lake. PTI has provided this information with the intertie and it appears that 2 series capacitors, a small SVS and stabilizers and breaking resistors at the site are required. In order to meet the same criteria without the intertie, an additional series capacitor and a larger SVS are required in addition to the above measures. Mr. Emerman noted that the money in the PTI Phase III budget will be used to provide additional runs focusing on what is needed to accommodate the utilities’ expressed constraints on voltage and frequency. Mr. Emerman said that he anticipates that the best advice will be that acceptable stability conditions can be maintained with Bradley operating at 120 MW without the new intertie, if money is spent on these measures. Mr. Emerman said that the items required at the site will be part of the total Bradley Lake Project costs; the SVS and series capacitors are not part of the Bradley Lake cost estimate. Mr. Emerman said that the preliminary cost estimate for these measures is approximately $4 million in the non-intertie case, and $1.5 million in the intertie case. Mr. Lovas cautioned that the intertie issue is not solely a stability criterion. Mr. Emerman responded that the final feasibility report will be presented according to the following six categories of benefits; stability, reliability, economy transfers, capacity reserve sharing, operating reserve sharing, and transmission losses. The draft feasibility report is scheduled for April 1, 1989, with the final feasibilty report anticipated at the end of June, 1989. 11. COMMUNICATIONS There were no further communications or business. 12. ADJOURNMENT The Committee adjourned at 1:50 p.m. PMC Meeting Minutes (MARBRAD) Page 7 of 7 March 3, 1989 Mle. KM ATTEST: eo SECRETARY APPROVED AT PMC MEETING HELD April 6, 1989 Great Mar cey For your review Com > Sorry fr tHe format ao. 5 am (Unablé-to print in te proqrom usually use, m DRAF) ae Danise AECORD UOPY RPEPHE—= BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE FILE NO aia @TITLE = March 3, 1989 pro 3-lil @LEVEL 1 = 1. CALL TO ORDER ~ @TEXT = Chairman Kelly called the Bradley Lake Project Management g13/e4 ¥ Committee to order at 10:10 a.m. in the Training Room of Chugach Electri Association to conduct the business of the Committee per the agenda and public notice. @LEVEL 1 = ROLL CALL @TEXT = The roll call was taken and a quorum was established. In attendance were the following: @COLUMN HEAD = Designated Representative Designated Alternate @COLUMNS = Donald L. Shira Alaska Power Authority<R> James F. Palin Myles C. Yerkes Matanuska Electric Association<R> Dave Highers Tom Lovas Chugach Electric Association<R> Kent Wick Homer Electric Association<R> Michael Kelly Robert Hansen Golden Valley Electric Association<R> Thomas R. Stahr John Cooley Municipal Light and Power @COLUMNS = E. Paul Diener City of Seward @COLUMN HEAD = Representatives Absent Alternates Absent Represen @COLUMNS = Bob Peirson City of Seward<R> Sam Mathews Homer Electric Association<R> Robert E. LeResche Brent N. Petrie Alaska Power Authority @TEXT = It was noted for the record that in the absence of Messrs. LeResche and Petrie, Mr. Shira was the designated Power Authority representative for today’s PMC meeting. It was also noted that Denise Burger, Alaska Power Authority, would serve as recording secretary for this meeting. @COLUMN HEAD = Others Present Representing @COLUMNS = Ron Saxton Golden Valley Electric Association<R> Susan White Alaska Power Authority<R> Dick Emerman* Alaska Power Authority<R> Afzal Khan Alaska Power Authority<R> Denise Burger Alaska Power Authority<R> Marcey Rawitscher Alaska Power Authority @TEXT = *Present from 12:10 p.m. to conclusion of meeting. @LEVEL 1 = 3. PUBLIC COMMENT @TEXT = There being no public comment, Chairman Kelly proceeded to agenda item 4. @LEVEL 1 = 4. MODIFICATION OF AGENDA @TEXT = No modifications to the agenda were made at this time; however, it was noted later that Ms. White would address the PMC relative to Executive Order No. 75 after agenda item 8., Review of Project Status. @LEVEL 1 = 5. APPROVAL OF MINUTES @LEVEL 1 = January 20, 1989 @TEXT = Mr. Yerkes noted that page 2, agenda item 7., Technical Coordinating Committee Report, should be changed to reflect that the TCC met with PTI, rather than SEI. The minutes of the January 20, 1989 meeting were approved with Mr. Yerkes’ correction by acclamation. @LEVEL 1 = FINANCE COMMITTEE REPORT @TEXT = Ms. Rawitscher reported that all necessary information eeeee has been provided to R.W. Beck. Ms. Rawitscher will be in Seattle, Washington on March 13-14, 1989 on other business and will meet with R.W. Beck during that time. Development of the feasibility report by R.W. Beck is anticipated to take 2-3 months and is required prior to bond issuance. @TEXT = Ms. Rawitscher said that Mr. Seagraves would like to set up a Finance Team meeting with Messrs. Palin, Kelly and Highers. There being no objection to this, Ms. Rawitscher was directed to set up this meeting. @TEXT = Although, interest rates currently are not favorable (i.e., early financing is not desirable at this time) Ms. Rawitscher said that the PMC should be in a position to issue bonds if interest rates suddenly decrease. According to Ms. Rawitscher, some analysts believe that interest rates will continue upward during 1989 and then come down at the end of the year. The Bond Buyer Index (BBI) went up 80 basis points in 10 days and then the BBI went down. Ms. Rawitscher noted that interest rates are currently very volatile, but in an up mode. Fall of 1989 is the earliest time that bond issuance is anticipated; moreover, historically November and December have not been favorable months to issue bonds due to the number of bond issuances flooding the market at this time which results in higher interest rates. @LEVEL 1 = 7. TECHNICAL COORDINATING COMMITTEE REPORT @TEXT = Mr. Yerkes reported that Power Technologies, Inc. (PTI) made a Phase II, Stability and Reliability, presentation to the TCE. It was determined that additional work is required on the preliminary PTI study and another meeting was scheduled with PTI and the TCC. @TEXT = The TCC is currently reviewing the bids for the SCADA system. Low bid for the SCADA system was received from a firm with questionable past performance which necessitates further bid evaluation. @LEVEL 1 = 8. REVIEW OF PROJECT STATUS @TEXT = Mr. Shira noted that Messrs. LeResche and Shira are currently in Japan and Korea meeting with Fuji regarding Fuji’s turbine subcontractor, Hyundai. Mr. Shira reported that Messrs. LeResche and Eberle are negotiating the release of materials that have been locked up due to a labor strike by Hyundai. Stone and Webster Engineering Corporation (SWEC) informed Mr. Shira that the labor strike has been settled; however, the float in the schedule for this item has been utilized. @TEXT = The Tunnel Boring Machine (TBM) is on site in the tunnel and the system is currently being reviewed. The TBM is anticipated to be ready for drilling in 7-10 days. @TEXT = Enserch is installing the steel penstock sections at this time and the powerhouse contractor, HC Price, is beginning their mobilization. @TEXT = The transmission line bids are currently being evaluated. The Engineer’s Estimate was $13.8 million; whereas, the low bid presented by Frontier-Marenco (i.e., a Canadian-Anchorage joint venture) was $16.7 million. The second lowest bid came in at $17 million by Newberry and Associates. Mr. Yerkes expressed concern over the high bids on the transmission line construction contract. Mr. Wick noted that the per mile cost for labor and materials for the HEA portion of the transmission line is $132,000, compared to $432,000 for this bid. Mr. Wick commented that the terrain is more difficult on the southern portion of Kachemak Bay and Fox River; however, the question remains as to whether or not the recent bid solicitation is overdesigned with steel versus wood poles. @LEVEL 1 = EXECUTIVE ORDER NO. 75 AND DONLEY’S CONCURRENT @LEVEL 1 = RESOLUTION NO. 1 @TEXT = Ms. White distributed copies of: @TEXT = House Special Concurrent Resolution No. 1, Disapproving Executive Order No. 75, @TEXT = February 27, 1989 memorandum from Teresa Cramer, Legislative Counsel, to Representative Donley, Chairman, House Labor and Commerce Committee, subject: Constitutionality of Executive Order No. 75 (Transferring programs to the Alaska Power Authority), and @TEXT = Executive Order No. 75 @TEXT = Ms. White reported that Executive Order No. 75 will go into effect March 9, 1989 if it is not blocked by Representative Donley’s House Special Concurrent Resolution No. 1, which if adopted by the Sixteenth Legislature, would disapprove Executive Order No. 75. Ms. White said that the purpose of the Executive Order is threefold: @TEXT = To change the name of the Alaska Power Authority to the Alaska Energy Authority, @TEXT = To transfer administration of the Power Development Revolving Loan Fund to the Alaska Power Authority, and @TEXT = To establish the Bulk Fuel Revolving Loan Fund in the Alaska Energy Authority. @TEXT = Ms. White said that the central issue regarding the Executive Order and Resolution is Legislative versus Executive branch prerogative in the expenditure and appropriation of funds. Ms. White noted that Representative Donley will withdraw his Resolution if a concurrent bill states that the prerogative will transfer to the legislative branch on future funds. Ms. White asked that the PMC express some form of support for the Governor’s Executive Order No. 75, as written. Mr. Highers motioned, seconded by Mr. Stahr, that the PMC adopt a resolution expressing support for Executive Order No. 75 and that Ms. White be directed to prepare such a resolution during the remainder of today’s PMC meeting. The motion passed by acclamation. It was noted that the resolution would be provided to the Governor, House of Representatives and Alaska Senate. @LEVEL 1 = 9. OLD BUSINESS @LEVEL 1 = Status Report on Rural Electrification Administration Approvals @TEXT = Mr. Saxton reported that he and Mr. LeResche met with REA in Washington, D.C. and that there are two sides to the REA review process: @TEXT 1) Review of Legal documents @TEXT Mr. Mitchell has requested an opinion from legal counsel (i.e., the Alaska Attorney General’s Office) on the application of the APUC exemption to the three contracts. @TEXT 2) Review of Prudency @TEXT REA staff has stated that they will recommend approval of the various contracts for all of the cooperatives to the REA Assistant Administrator today. @TEXT = Mr. Saxton said that the executed letter agreement and HEA agreement need to be provided to REA. Mr. Saxton also noted that this item may be removed from future PMC agendas as the process is virtually complete relative to securing REA approvals. @LEVEL 1 = 10. NEW BUSINESS @TEXT = Chairman Kelly said that he had directed Mr. Saxton to draft a document identifying and outlining issues requiring the PMC’s attention during 1989 (reference February 27, 1989 memorandum to the Bradley PMC from Mr. Saxton regarding Issues for Discussion at BPMC Meeting). The issues outlined in Mr. Saxton’s were reviewed: insurance; budget process, funds and payment obligation; tax treatment of Bradley PMC; and FERC license fee issue. Mr. Saxton noted that there are two timelines relative to the PMC addressing these issues; 1) the last date is prior to project operation, and 2) an earlier date is prior to issuance of bond resolution. Mr. Saxton noted that timeline 2 would simplify how these items are handled. Mr. Saxton suggested that small committees be established to address each of these areas. Mr. Stahr noted that an additional item of primary importance is that the Bradley Lake Project be property built. @TEXT = The following issues were discussed and Committees organized: @LEVEL 1 = Issue No. 1, Project Monitor @TEXT = It was noted that this function is being performed by the Configuration Control Committee Representative Yerkes and that issues will be brought back from the CCC to the PMC as they arise for decision making. @LEVEL 1 = Issue No. 2, Insurance Committee @TEXT = Brent Petrie, APA, Chairman @TEXT = Kent Wick, HEA @TEXT = Robert Hansen, GVEA @TEXT = Mike Cunningham, CEA @TEXT = Ron Saxton, GVEA, resource as required @LEVEL 1 = Issue No. 3, Budget Committee @TEXT = Marcey Rawitscher, APA @TEXT = Tom Klinkner, Wohlforth, Argetsinger & Brecht @TEXT = Dennis Lapp, ? @TEXT = Cathy Jacobs, ML&P @TEXT = Ron Saxton, GVEA, resource as required @LEVEL 1 = Issue No. 4, Tax Committee @TEXT = Pending recommendation by Messrs. Petrie and Saxton relative to pursuing tax exemption. @LEVEL 1 = Issue No. 5, FERC Licensure @TEXT = Pending briefing/recommendation by Messrs. Petrie and Saxton. @LEVEL 1 = Issue No. 6, Operating and Dispatch Agreement Committee @TEXT = Donald L. Shira, APA @TEXT = John Cooley, ML&P @TEXT = Marv Riddle, GVEA @TEXT = Tom Lovas, CEA @TEXT = Sam Mathews, HEA @TEXT = The consensus was for PMC legal assistance to be provided to each of the above committees by Mr. Saxton, as required. It was noted that changing or expanding these committees will remain flexible as required. It was determined that it was up to each Committees to elect its chairman and individual to report a brief update to the PMC at each meeting. Chairman Kelly charged each committee with preparing a timetable of their objectives and report back to the PMC at their next meeting. It was anticipated that each committee would eventually present a menu of options and recommendations to the PMC. @LEVEL 1 = 12. OTHER BUSINESS @LEVEL 1 = Schedule Next Meeting @TEXT = a. Date April 6, 1989 @TEXT = b. Location Training Room, CEA @TEXT = c. Time 10:00 a.m. @LEVEL 1 = EXECUTIVE ORDER NO. 75 (Continued) @TEXT = Ms. White read a Resolution of the Bradley Lake PMC in Support of Executive Order No. 75. There were no objections expressed to the language and Mr. Saxton said that he agreed with the language in the resolution. Chairman Kelly noted that the PMC had approved this resolution proforma as Resolution 89-4. @LEVEL 1 = 10. NEW BUSINESS @TEXT = Mr. Emerman reviewed the progress on the Southern Intertie study. Mr. Emerman said that estimates of the measures which are necessary to run Bradley Lake at capacity, with and without the Southern Intertie, are required. The costs associated with each of those scenarios are also required. Mr. Emerman said that it needs to be determined what is required with and without the intertie to provide satisfactory operating conditions for Bradley Lake. PTI has provided this information with the intertie and it appears that 2 series capacitors, a small SVS and stabilizers and breaking resistors at the site are required. In order to meet the same criteriem without the intertie,4 additional series capacitorg and a larger SVS are required in addition to the above measures. PTL @TEXT = Mr. Emerman noted that the money in the4Phase III budget will be used to provide additional runs focusing on what is needed to accommodate the utilities’ expressed constraints on voltage and frequency. Mr. Emerman said that he anticipates that the best advice will be that acceptable stability conditions can be maintained with Bradley operating at 120 MW without the new intertie, if money is spent on these measures. Mr. Emerman said that the items required at the site will be part of the total Bradley Lake Project costs; the SVS and series capacitors are not at Sot ae ae ye ae a es oy os part of the4cost estimate. Mr. Emerman said that the“cost ‘of these measures is approximately $4 million in the non-intertie case, and $1.5 million in the intertie case. @TEXT = Mr. Lovas cautioned that the intertie issue is not solely a stability criterion. Mr. Emerman responded that the final feasibility report will be presented according to the following six categories benefits; stability, reliability, economy transfers, capacity: operating reserve sharing, and transmission losses. The draft feasibili report is scheduled for April 1, 1989, with the final teas ibility report anticipated by’ the end of Tune Apeid, 1989. @LEVEL 1 = 11. COMMUNICATIONS @TEXT There were no further communications or business. @LEVEL 1 = 12. ADJOURNMENT @TEXT = The Committee adjourned at 1:50 p.m. @TEXT = @TEXT = CHAIRMAN @TEXT = ATTEST: @TEXT = @TEXT = SECRETARY @TEXT = APPROVED AT PMC MEETING HELD . DRAFI BRADDLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING 3/ 3/€4 March 3, 1989 7 FES EE ROUGH DRA PTcnnnbninbinininkinnink 1. CALL TO ORDER w €hairman Kelly called the Bradley Lake PMC to order at 10:10 ok shit “a.m. in the Training room of CEA to Conduct the business of xo" u\ / . / Ge the Committee per agenda. pric poh cin ip! Ww? 2. ROLL CALL WE ga? The roll was taken. In attendance were the following: wn vd pe” ike Kelly _ Ron Saxton im Palin ~ Robert Hansen | pee Yerkes pon Shira ah vPaul Diener Afzal Khan see “Dave Highers _Aenise Burger C Aom Stahr U’'arcey Rawitscher CY a Aohn Cooley ent Wick \Wv Sue White Aom Lovas Xe { Pick Emerman yn shi 3. PUBLIC COMMENT / Pe public comment. 4. MODIFICATION OF AGENDA ne? pier Address PMC on matter of Executive Order No.75 after Review of Project Status. / @ 'y 5. APPROVAL OF MINUTES Aon Change ere made and minutes were approved (refer to tape e mon O eb} efron, poi rley -pprrd 6. FINANCE COMMITTEE REFORT wee Matcey Rawitscher réported that all necessary as es has\ been sent to , Seattle. _Ms. Rawitscher ans to be in attle on other business the-13th and 14th of March a will personally checking on progress at BEC. The ort preparation BEC is antici take 2- s. Mr. Seagraves to up a Finance. Te ing with Hi \ The Finance Committee suggests that the finance team/be ready to act if N ‘ P Wg the maxket should become suddenly favorable, though n expected\to do 7. TECHNICAL COORDINATION COMMITTEE REPORT ‘ —(Frida he~TCe viewing iid “prop The low bid was received by a firm with A questionable past performance, req Shira reports that Mr. LeResche and Mr. Eberle are tiating the release of materials from the Hyundai Plant The ented b te) ond SALT site due to the There is no activity to report for the dai snow conditions. YS 9. MEXECUTIVE ORDER NO. 75 Ponty 5 Conarrtnt (6. Wo. | Sue White repo t Exe i Order No. 75 wi into effect March’9, 1989 as long as it is not blocked by Repres tive Donely. MS. White requested that the PMC ,.\\*" express some form of s port for the Governor's Sree ae Highers mggionad that s. White ea resolutiow#ot thé’! a PMC toSappueme at this meetin * \{Tom Stahr and pass i) L 6n répotts that the Recomme on. “REA agrees that_it i ince Mr. Mitchell that an gpinion from ft Couns, : ; eneral's Office) would suffigk oy + ic hey of gm TR Howey <gf Ctrtal Khctiny 0 folcureat L4fny odin yt cKE decided this item could now be rémoved fr future CYC pt br occ sion report excactel Hy 11. NEW BUSINESS ney Define Major PMC Issues Leto-sked bon L WAP pacar” + a jor” Ron Saxton gave an overview of the major issues he felt the je yell o as : yan Fale PMC would w. to consider. The subjects included in Ay? HM of ; ¢ ‘ relationsh ke Project we ce, ™! \st = ect i) J x Funds, Bugget, Pa axes, and FERC ¢’ \. 7a pe" v \ Lic Mr. Saxton suggested that small committees be awl of ee (a established in each of these areas. Tom Stahr pointed out an : Le Np : ow \ that another primary issue of importance was to have the ? yr" tt project properly built. Mike Kelly suggested that this (oO cif al should be the PMC’s No. 1 Issue and noted that Mike Yerkes ce Kr and the TCC are performing this roll at the present time and Worl jee ; =f A { Byent Petrie, X" Robe ansen, “Y of” ; g Kent Wick/ieh Miké Cunn cee —<—$ == ¥ Ron Saxton (servic required) Asef Issue No. 3 - Budget Committee ye? Marcey Rawitscher, m. inkner We athy as required) Brent Petrie and ( Hold for reco i b Lect; + pose this prieGn . recommendation by Brent Ron Saxton. -y Issue No. 6 - Operating and Dispatch Agreement Committee | Shira s ‘ : I. é John Ggoley on or . + t yt) g U Te Marv Ri 4 a et a f yw oi é Mike Kelly charged each-committee with preparing a time mY table the next PMC meeting. Mr. f Kelly ittees be pr ed to a brief The next meeting of the PMC was scheduled for April 6, 1989 19:00 a.m. ip-elis termining room of Chugech-Biectsio——— As 2 9. EXECUTIVE ORDER NO. 75 (CONTINUED) Dic study. The studies stating that estj Tom Lovas‘é: _tested and confirmed_ Mike Kelly-stated that_he would try to. LeResche/ to uss’ the si Qn Intextié study. 12. ADJOURNMENT