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HomeMy WebLinkAboutBPMC Meeting - January 13, 1992 1FILE COPY 225 a BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE =, January 13, 1992 1. CALL TO ORDER Chairman Kelly called the Bradley Lake Hydroelectric Project Management Committee to order at 10:30 a.m. in the Training Room at Chugach Electric Association in Anchorage, Alaska to conduct the business of the Committee per the agenda and the public notice. 2. ROLL CALL Alaska Energy Authority Charlie Bussell, Designated Representative Chugach Electric Association David L. Highers, Designated Representative Golden Valley Electric Association Mike Kelly, Designated Representative and Chairman City of Seward - ABSENT Homer Electric Association Norman L. Story, Designated Representative Matanuska Electric Association Ken Ritchey, Designated Representative Municipal Light and Power Thomas Stahr, Designated Representative Others Present: Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerrit Robert Hufman, Utilities Consulting Services Bradley Evans, Chugach Electric Association, Inc. David Eberle, Alaska Energy Authority John Cooley, Chugach Electric Association, Inc. Dave Fair, Homer Electric Association Stanley E. Sieczkowski, Alaska Energy Authority Tim McConnell, Anchorage Municipal Light & Power Gene Bjornstad, Chugach Electric Association, Inc. David Burlingame, Chugach Electric Association, Inc. Penny Haldane, Alaska Energy Authority Don Edwards, Chugach Electric Association, Inc. Myles Yerkes, Alaska Electric Light & Power/Homer Electric Association 92Q1\JD2344(1) Bradley Lake Project mmittee Meeting Minutes January 13, 1992 Page 2 of 6 Steve Haagenson, Golden Valley Electric Association, Inc. Marvin Riddle, Golden Valley Electric Association, Inc. Robert Hansen, Golden Valley Electric Association, Inc. Joe Griffith, Chugach Electric Association James D. Hall, Anchorage Municipal Light & Power PUBLIC COMMENT There was no public comment. AGENDA COMMENTS Hearing no objection, The agenda was approved with the following modifications: 12. B. Railbelt Spinning Reserve Philosophy 12. c Synopsis of Manager's Meeting January 13, 1992. APPROVAL OF MINUTES Hearing no objection, the minutes from November 19, 1991 were approved with one correction to reflect Joe Griffith, Chugach, present at the meeting. TECHNICAL COORDINATING SUBCOMMITTEE REPORT Dave Burlingame reported that the Technical Coordinating Subcommittee had not met since the last BPMC meeting. INSURANCE SUBCOMMITTEE REPORT Ron Saxton reported for the Insurance Subcommittee. A market is available for additional insurance to protect the BPMC. However, this coverage cannot be purchased until September 1992 when the project will have operated for one year. An argument that the BPMC has already existed for longer than a year was not successful. Mr. Saxton and the Insurance Subcommittee advises that the BPMC purchase this insurance as soon as it is available. An immediate problem is not anticipated but the extra comfort level is worth the cost (the Four Dam Pool pays approximately $10,000 per year). If any utility has a specific concern they should contact Mr. Saxton. BUDGET SUBCOMMITTEE REPORT Ken Ritchey reported that the Budget Subcommittee met in December. The wheeling issue with HEA is being resolved. The first draft of the FY92 BPMC budget has been reviewed in detail. The only major issue is AEA's overhead cost. Back-up documentation has been requested from AEA. The budget must be approved by April 1, 1992. The Budget Subcommittee will meet later in January and present a proposed budget at the February BPMC meeting. Final approval is anticipated at the March BPMC meeting. Chairman Kelly recommends that specific input for the budget should be made directly to Ken. 92Q1\JD2344(2) Bradley Lake Project mmittee Meeting Minutes January 13, 1992 Page 3 of 6 9. 10. OPERATION AND DISPATCH SUBCOMMITTEE REPORT Stan Sieczkowski reported that the Operation and Dispatch Subcommittee met on December 17, 1991. Reservoir modeling was discussed with current projections showing a surplus of water. Asa result, All participants are reviewing their allocations. AEA will organize a meeting with the weather service so utilities can understand what goes into this program. On another matter, a letter will be sent to the SCADA committee so Bradley communication problems can be corrected. At the December 17 meeting the O & D Subcommittee adopted the 90 megawatt cap based upon the load acceptance analysis. It was also clarified that station service for Bradley would come directly from the project when on line and would be supplied by Chugach when off line. The next Operations and Dispatch meeting is scheduled for January 28, 10:00 a.m. at the Alaska Energy Authority Conference Room. Mr. Kelly asked Stan for an update on the work of the Agreements Subcommittee. Mr. Sieczkowski reported that the "Dispatch" Agreement was forwarded to Chugach for signature. The Allocation and Scheduling Agreement Exhibits C and D are being updated. The Maintenance Agreements with Homer and the Right of Way Agreements are being worked on by Mr. Sieczkowski. The Static Var Agreement is still in Committee. Dave Highers reported that Chugach has approved the "Dispatch" Agreement. It is anticipated that within 30 days, the Homer Agreements will be submitted for HEA's approval. Brad Evans reported that the 1991/1992 water allocations have been agreed upon. For the water year ending May 31, 1992, an excess of 27,000 megawatt-hours is predicted. No target has been set, but the reservoir should be at a low level so input is maximized. Review of Project Status Dave Eberle reported that all on-site construction, per FERC licensing, is complete as of November 23, 1991. Final close-out on several construction contracts should be complete by January 31. Bechtel will be finished by mid-February. Fuji arrived last week to begin the warranty repair work on the turbine seals. Once these repairs are complete Stone and Webster and Power Technologies, Inc. will do some joint testing with Fuji. ASEA Brown Boveri (ABB) is still on schedule with their SVS work. It has been determined that a second harmonic filter is needed at Daves Creek and design work will include the additional filter. However, there is some dispute as to whether this second filter was included in the original scope of work, and this issue could become a contract claim. Overall project completion, including SVS and the contingencies, is 93%. The bond resolution requires 98% completion before any surplus state funds can be returned. December 1992 to March 1993 is when the project is estimated to reach 98% completion. A rough estimate of $10 million might be available for return to the state. 92Q1\JD2344(3) Bradley Lake Project mmittee Meeting Minutes January 13, 1992 Page 4 of 6 11. OLD BUSINESS Adoption of the Bradley Lake Dispatcher Guidelines Summary Dave Burlingame reported that the Bradley Lake Dispatcher Guidelines Summary has not been completed yet. Mr. Burlingame recommends that formal adoption not take place until the Technical Coordinating Subcommittee signs off. Copies of Chugach's one-page synopsis will be distributed for review. Proposed Motion Regarding Risk/Benefit Analysis Tom Stahr explained that the proposed motion regarding Risk/Benefit Analysis would make for easier BPMC decisions. Norm Story announced his support of an action that would provide more information on which to make decisions. Mr. Story would like to see some steps that would be used to obtain this analysis. Discussion ensued as to where this Risk/Benefit Analysis should be applied - Subcommittee level, BPMC level, or a separate economic evaluation subcommittee. Chairman Kelly requested that implementation guidelines and maybe an example be provided for the next BPMC meeting and proposed the issue be tabled until then. Dave Burlingame also raised the issue that sometimes utility representatives on a particular committee do not represent the entire utility's view on a subject. Mr. Burlingame feels that this problem coupled with mandatory risk/benefit analysis could bog things down at the committee level unless it is understood that all aspects of a problem are to be examined by the committee and a decision made that represents a view shared by every affected department. Mr. Saxton cautioned that adoption of standards should be such that they can be followed consistently. This item was tabled. Tom Stahr will provide additional information at the next BPMC meeting. 12. NEW BUSINESS A. 92Q1\JD2344(4) Approval of Committee Expenses Ron Saxton reported committee expenses from Golden Valley Electric and Ater Wynne. These two expenses totaling $19,538.54 have been approved by AEA at this time. Motion - The BPMC approves $19,538.54 in expenses submitted at the January 13, 1992 meeting. Motion by Dave Highers, second by Ken Ritchey. The motion passed unanimously. Once again Mr. Saxton urged members to submit expenses in a timely manner. Railbelt Spinning Reserve Philosophy Motion - The Bradley Lake Project Management Committee (BPMC) moves that the issue of appropriate Railbelt spinning reserves and load-shedding philosophy be remanded to the Alaska Systems Coordinating Council (ASCC) Reliability Criteria Subcommittee for study, consideration, recommendations, and implementation plan. The results of this committee are needed ASAP. Motion by Dave Highers, second by Ken Ritchey. The motion passed unanimously. Bradley Lake Project January 13, 1992 Page 5 of 6 Cc. nmittee Meeting Minutes Synopsis of Manager's Meeting January 13, 1992 Chairman Kelly provided the following synopsis of the utility Manager's meeting, held on January 13, 1992 at 8:30 a.m.: 1. Expenses for Bernice Turbine Operation - Costs, including a minimum energy level, will be shared on a pro-rated basis for voltage stability testing and operations on the Bernice turbine when required to achieve Bradley Lake exports. Other operation of the Bernice turbine is the responsibility of Chugach Electric. Increased Voltage Swings/Export Limits - Based on the January 10 report from PTI, a recommendation has been made to increase the export limit of Bradley Lake to 90 megawatts. Homer would like further information regarding impact to the HEA system before deciding this issue. It is expected that this will be an action item at the next BPMC meeting. Bradley Output vs. Risk of Damage to HEA System - This item was covered in item 2 above. HEA System Reliability - This is viewed as an issue between Homer and their power supplier, Chugach. Some concerns of Homer remain regarding the operating limit changes being discussed. It is felt that these changes would cause this issue to extend beyond these two utilities. Bradley Spinning Reserves - This issue was forwarded to the ASCC Reliability Criteria Subcommittee. Minimum Bradley Operating Levels - This is still a concern to Homer. Underfrequency Loadshedding Study - This issue was forwarded to the ASCC Reliability Criteria Subcommittee. HEA Sales of Economy Bradley to Golden Valley - A meeting between Homer Electric Association , Chugach Electric Association, and Golden Valley Electric Association has been suggested. In the interim Golden Valley Electric Association and Homer Electric Association are operating under a handshake agreement. 13. COMMUNICATIONS A. 92Q1\ID2344(5) Schedule Next Meeting February 28, 1992 (Friday) 10:00 a.m. Chugach Electric Association Training Room Bradley Lake Project mmittee Meeting Minutes January 13, 1992 Page 6 of 6 B. Dave Eberle communicated that utility testing costs are still in suspense. ML&P $1,500 GVEA $65,000 HEA $39,000 Chugach ~$100,000 TOTAL $206,000 Mr. Eberle requires action from the BPMC before arranging payment. If these costs will be charged as project costs Dave suggested that the Operations and Dispatch Subcommittee review these bills. Chairman Kelly requested the O & D Subcommittee review these costs and present an agenda item for the next BPMC meeting. 14. ADJOURNMENT There being po fyrther business, t ittee adjourned at 11:55 p.m. Chairman Kelly et Charlie Bussell, Secretary 92Q1\ID2344(6) UNREIMBURSED BRADLEY LAKE COSTS COSTS INCURRED June 1 - September 30, 1991 As Submitted to Ater Wynne PROJECT COSTS ATER 7 2,867.60 WYNNE’ 16,670.94 16,670.94 16,670.94 2 . y APPROVED AT BPMC MEETING __JANUARY 13. 1992 SIGNED: Mb Ae a CHUGACH: No costs submitted. GVEA: Includes cost information from October, 1991 through November, 1991. HOMER: No costs submitted. MATANUSKA: Includes cost information from August 15, 1991 through December 15, 1991. ML&P: No costs submitted. SEWARD: No costs submitted. ATER WYNNE: Includes legal fees and costs from October 15, 1991 through December, 1991. BOW\cqnoe2R NOS