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HomeMy WebLinkAboutBPMC Meeting - January 13, 1992 3RECORD VOPY Alaska Energy Authority = =o PRO 3-).) min MEMORANDUM v TO: Bradley Lake Project Management Committee FROM: Charlie Bussell (NOD Secretary, PMC ° DATE: January 6, 1992 SUBJECT: January 13, 1992 Bradley Lake PMC Meeting Enclosed you will find a copy of the January 13, 1992 Agenda for the Bradley Lake Project Management Committee meeting. Please provide any comments to Chairman Kelly. The meeting place will be at Chugach Electric Association in the Training Room at 10:00 a.m. There will also be an 8:30 a.m. meeting of the technical support staff and managers on the 13th at Chugach Electric. For your review is a copy of the draft meeting minutes of the November 19, 1991 meeting, which will be considered at the January 13, 1992 meeting. An executed copy of the August 23, 1991 meeting minutes are enclosed for your records. The October 25, 1991, meeting minutes will be sent under separate cover. DS/CB/ds BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE January 13, 1992 Chugach Electric Association, Inc Training Room - 10:00 A.M. 1. CALL TO ORDER 10:00 A.M. Kelly 2. ROLL CALL 3. PUBLIC COMMENT 4. AGENDA COMMENTS 5. APPROVAL OF MINUTES November 19, 1991 6. TECHNICAL COORDINATING SUBCOMMITTEE REPORT Burlingame ee INSURANCE SUBCOMMITTEE REPORT Petrie 8. BUDGET SUBCOMMITTEE REPORT Ritchey 9. OPERATION AND DISPATCH SUBCOMMITTEE REPORT Sieczkowski 10. REVIEW OF PROJECT STATUS Eberle 11. OLD BUSINESS A. Adoption of the Bradley Lakes Dispatcher Guidelines Summary Burlingame B. Proposed Motion Regarding Risk/Benefit Analysis Stahr 12. NEW BUSINESS A. Approval of Committee Expenses Saxton 13. COMMUNICATIONS a. Schedule Next Meeting 14. ADJOURNMENT 91Q4/JD1991(1) DRAFT BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE November 19, 1991 1. CALL TO ORDER Chairman Kelly called the Bradley Lake Project Management Committee to order at 10:00 a.m. in the Training Room at Chugach Electric Association, Inc. 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 E. Paul Diener, Designated Representative 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 Brad Evans, Chugach Electric Association, Inc. David Eberle, Alaska Energy Authority Tom Lovas, Chugach Electric Association, Inc. Stanley E. Sieczkowski, Alaska Energy Authority Tim McConnell, Anchorage Municipal Light and Power Moe Aslam, Anchorage Municipal Light and Power Dave Fair, Homer Electric Association, Inc. John Cooley, Chugach Electric Association, Inc. David Burlingame, Chugach Electric Association, Inc. Penny Haldane, Alaska Energy Authority 91Q4\JD1989(1) Bradley Lake Project imittee Meeting Minutes November 19, 1991 Page 2 of 5 3. PUBLIC COMMENT There was no public comment. AGENDA COMMENTS Hearing no objection, the agenda was approved. APPROVAL OF MINUTES Hearing no objection, the minutes from October 25, 1991 were approved. TECHNICAL COORDINATING SUBCOMMITTEE REPORT Dave Burlingame distributed a written synopsis of the October 31, 1991 Technical Coordinating Subcommittee (TCS) meeting. At this meeting the TCS adopted the interim operating study prepared by PTI (Bradley Lake/Kenai Operating Guidelines). These new guidelines increased the interim operating guidelines by approximately 10-15 megawatts in all cases. These new guidelines are to be used by the Operating and Dispatch subcommittee until finalized. The Bradley Lake Project Management Committee (BPMC) concurred. Mr. Burlingame reported that the Bradley Lake Dispatcher Guidelines Summary is expected to be complete by the next BPMC meeting. The BPMC will be asked to adopt this Summary at the next BPMC meeting. INSURANCE SUBCOMMITTEE REPORT Ron Saxton reported for Brent Petrie. Insurance for this year is in effect. Preliminary work is underway for next year. BUDGET SUBCOMMITTEE REPORT Ken Ritchey held a Budget Subcommittee meeting immediately preceding the BPMC meeting. Mr. Ritchey reported that the issue of Homer's O&M costs will be resolved as soon as Ken gets the necessary information from Homer. The Fiscal Year 1993 budget was discussed at the morning meeting. The FY93 budget must be approved by April 1, 1992. The Budget Subcommittee intends to distribute the draft budget and cash flow in February so that approval could be accomplished at the March BPMC meeting. In anticipation of a past issue, the budget committee will be proposing a Memorandum of Understanding regarding AEA's overhead costs and fluctuations from year to year. 91Q4\D1989(2) Bradley Lake Project! mittee Meeting Minutes November 19, 1991 Page 3 of 5 9. 10. 11. OPERATION AND DISPATCH SUBCOMMITTEE REPORT Stanley Sieczkowski reported that the Agreements Subcommittee met on November Sth. Six major agreements are outstanding. On November 4th AEA met with HEA and Chugach to discuss the maintenance agreement, the interconnected agreement between AEA and HEA, and the right-of-way agreement for Daves Creek and Soldotna substation. Four agreements dealing with HEA and Chugach are currently being drafted. Review of these 4 drafts will begin in December. The static var compensation system draft will be available in January 1992. The Operation and Dispatch (O&D) Subcommittee met on November 5. Comments on the Dispatch agreement and the reservoir model were received. The next meeting of the O&D Subcommittee is scheduled for December 3, 1992. On November 20 the utility Chief Dispatchers were scheduled to meet and discuss the maintenance and outage schedule. Allocations will be incorporated into the maintenance schedules for the remainder of the year. The operating criteria information was supplied to the O&D Subcommittee by the TCS Subcommittee. The Dispatch Agreement was developed and reviewed by the Agreements Subcommittee and the Operations and Dispatch Subcommittee. These two committees recommend that the Dispatch Agreement be accepted and forwarded on to Chugach and AEA for signatures. This agreement was a modification that addressed the utility's concerns and was developed into a resolution and the Dispatch agreement. Under Old Business a formal recommendation will be made. Review of Project Status Dave Eberle provided a report on project status. The work on the rehabilitation contract is almost complete and Bechtel is expected to be finished in January 1992. Stone and Webster will remain to work on the SVS contract. Seeding and revegetation will continue in the spring. Debris from the reservoir will be cleared, contaminated gravel will be disposed, and the exciter problem will be followed up by Fuji. Mr. Eberle reported that the Battle Creek diversion was complete and would begin functining this Spring. Ron Saxton asked Dave where the final projects costs stood. Dave estimates about $310 million which does not include the reserves set aside for the contaminated gravel disposal and the utility operating costs during testing. Bob Hufman had a question on resolution of the turbine efficiency problem. Dave stated that the losses related to the turbine efficiency problem are estimated to have an annual value of $8,000-$12,000. It is anticipated that monetary compensation will be offered by Fuji in lieu of attempting to modify the turbines. OLD BUSINESS A. Dispatch Agreement The Dispatch Agreement has been agreed to at the Subcommittee level. The Dispatch Agreement, and the Resolution proposing new Exhibits "C" and "D" were distributed with the agendas and extra copies were available at the meeting. 91Q4\JD1989(3) Bradley Lake Project‘ mittee Meeting Minutes November 19, 1991 Page 4 of 5 Motion - The Bradley Lake Project Management Committee (BPMC) approves the execution of the Dispatch Agreement between Chugach and the Alaska Energy Authority. Motion by Norm Story, second by Tom Stahr. Tim McConnell proposed ¢ motion be amended to ify the November 5 draft and to clarify that amendments to the agreement must also be approved by the BPMC. The amendment was accepted and the motion passed unanimously. Resolution Amending Allocation and Scheduling Procedures Motion - The BPMC_ approves Resolution 91-10 amending the Allocation and Scheduling Procedures adopted by the BPMC. Chairman Kelly read the resolution. Motion by Norm Story, second by Paul Diener. Norm Story clarified Exhibit C, Item 5 _by interpreting the Bradley Lake System as including HEA and thus would include coordination with HEA. Mr. Story also requested that Exhibit C, Item 11 include Homer when the switching procedures are finalized. The motion passed unanimously. 12. NEW BUSINESS A. Approval of Committee Expenses Ron Saxton reported that there were not any committee expenses to approve at this time. Kenai Peninsula Export Limit This issue was addressed by Dave Burlingame and will come back to the BPMC as part of the Operating Guidelines. For now this item is deferred. Under New Business Dave Highers asked for discussion of the potential agreement between Golden Valley and Homer Electric regarding sale of Homer's Bradley Lake shares. After discussion it was agreed that there are several outstanding issues that need to be discussed in relation to the scheduling of Bradley. Burlingame provided some explanation of the issues being discussed and agreed to prepare some typical cases and restrictions for discussion purposes. A meeting of the General Managers and up to three representatives of each utility will be held on January 6, 1992, at 10:00 a.m. Each utility should list issues and distribute to others. This list will be compiled and used for discussion items at the January 6 meeting. This will not be an official BPMC meeting. 13. COMMUNICATIONS A. 91Q4D1989(4) Schedule Next Meeting January 15, 1992 10:00 a.m. Chugach Electric Association Training Room Bradley Lake Project | mittee Meeting Minutes November 19, 1991 Page 5 of 5 14. ADJOURNMENT There being no further business the committee adjourned at 11:45 p.m. Chairman Kelly Attest: Charlie Bussell, Secretary 91Q4\JD1989(5) PROPOSED MOTION FOR CONSIDERATION BY THE BRADLEY LAKE PMC Now that we are in the commercial operation phase of the Bradley Lake Project, the PMC could be better served by the various subcommittees if their recommendations for PMC action are accompanied by risk/benefit analyses of the overall effect the proposed action is expected to have. Prudent utility practice is the standard to which PMC actions are held--over emphasis on any single aspect of an issue needs to be avoided. The risk/benefit analysis is an effective way for the PMC to become aware of those factors a subcommittee considered in arriving at a particular recommendation--as well as those it did not. We request your support for the following proposed motion, believing it to be a necessary refinement of our very successful PMC management process as it transitions to commercial operations management. Proposed Motion by ML&P: Move that, "To better serve the needs of the PMC during commercial operation of the Project, a risk/benefit analysis will normally accompany any subcommittee’s recommendation for action by the PMC. The intent of this requirement is to more readily identify the pros and cons of a recommended action as it relates to prudent utility practice." NOV. 19, 1991 CHUGACH ELECTRIC ASSOCIATION, INC. Anchorage, Alaska November 18, 1991 TO: Bradley Lake Project Management Committee FROM: David W. Burlingame, Technical Coordinating Subcommittee Repeeaaine/ JS SUBJECT: October TCS Meeting The following is a synopsis of the October 31, 1991 TCS meeting: The primary issue of business for the TCS during the October meeting was the adoption of the Bradley Lake/Kenai Operating Guidelines. The adoption does not mean the criteria and guidelines are final, only that they are to be used by the O&D Subcommittee until any other guidelines are adopted. The guidelines were adopted by unanimous vote. HEA was represented by a non-voting member who also supported the guidelines. The Subcommittee unanimously approved the installation of unit tripping at Bradley Lake to automatically trip one unit for any line fault on the Bradley Lake transmission lines. The operating guidelines are essentially the same guidelines originally proposed by PTI utilizing the higher levels of post fault voltages. The guidelines are basically as follows: Kenai Operation - No Gas Turbines If no gas turbines are operating on the Kenai, the combination of Bradley Lake plus Cooper Lake generation should not result in more than a 7 MW export as measured at Daves Creek. Kenai Operation - One Bernice Lake Turbine If one Bernice Lake turbine is operating on the Kenai in conjunction with Bradley Lake, the combination of Kenai generation should not result in an export of more than 28-32 MW. Placing restrictions on the Bernice Lake turbine output allows Bradley Lake to operate at higher levels by approximately the same amount as the Bernice restrictions. Kenai Operation - Two Gas Turbines With two gas turbines operating at Bernice Lake, the system is only constrained by the transmission line rating. At the present time, the thermal limit of this conductor is 71 MW. The conductor is due to be replaced in January 1992 which will remove any thermal Bradley Lake Project Management Committee Page 2 October TCS Meeting restrictions. The line will then be constrained only by the voltage levels experienced along the line to Anchorage. Kenai Operation - Soldotna Gas Turbine With Soldotna No. 1 and Bradley Lake on-line, the total generation should not result in an export limit of more than 48-51 MW. If the Soldotna turbine is operated at low or restricted generation levels it will allow Bradley Lake to operate at a higher level than if one Bernice Lake turbine was on-line. However, if Soldotna is operated at higher generation levels, the Bradley output and Kenai export is considerably lower than an equivalent amount of generation located at Bernice Lake. Summary - Kenai Export Table Generators On-line Recommended Export Bradley/Cooper 7MW Bradley/Cooper & BLPP 3 or 4 28-32 MW Bradley/Cooper BLPP 3 & 4 65 MW Bradley/Cooper & Soldotna 48-51 MW The committee accepted a report prepared by PTI concerning spinning reserves located on the Kenai. The report indicates that use of spinning reserves located on Kenai gas turbines should not result in any system instabilities, but use of any Bradley Lake spinning reserves which result in the plant output being above 90 MWs may. The committee unanimously adopted a motion to limit the total scheduled amount of Bradley energy and capacity to less than 90 MW. In accepting the operating guides, the committee recognized the possibility of a fault on the Soldotna - Quartz Creek 115 kV line as being remote and did not constrain the system to values associated with this case. The committee also assumed that the stability problems associated with the Fuji exciter are not relevant at the present time due to the installation of unit tripping. Bradley Lake Project Management Committee Page 3 October TCS Meeting SVC - ABB has met with HEA, AEA and Chugach to develop preliminary control and protection schemes and to develop preliminary station layouts. ie SVC’c are expected to be operational by March 4, 1993. Bradley Lake Dispatcher Guidelines Summary - The utilities have submitted comments to SWEC on the proposed summary and are presently preparing the final report. The report should be ready for adoption by the PMC at the next meeting. State Microwave System - Due to experience to date with the reliability of the state microwave system, the TCS approved a motion to upgrade the state system by installing hot- stand-by radios on the sites which do not currently have hot-stand-by systems. The estimated cost is approximately $200,000. DWB/mel 311.DWB ° nd ad BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE August 23, 1991 i. CALL TO ORDER Chairman Kelly called the Bradley Lake Project Management Committee to order at 10:00 a.m. in the Training Room at Chugach Electric Association in Anchorage, AK, to conduct the business of the Committee per the agenda and the public notice. 2. ROLL CALL Alaska Energy Authority Charlie Bussell, Designated Representative Brent N. Petrie, Designated Alternate Chugach Electric Association, Inc. David L. Highers, Designated Representative Joe Griffith, Designated Alternate Golden Valley Electric Association, Inc. Mike Kelly, Designated Representative and Chairman City of Seward E. Paul Diener, Designated Representative Homer Electric Association, Inc. Norman L. Story, Designated Representative Matanuska Electric Association, Inc. James D. Hall, Designated Alternate Municipal Light and Power Thomas Stahr, Designated Representative 91Q3/JD1475(1) Bradley Lake Project mnmittee Meeting Minutes August 23, 1991 Page 2 Others Present: Ron Saxton, Representing Ater, Wynne, Hewitt, Dodson & Skerrit Robert Hufman, Purchasing Utilities Dave Burlingame, Chugach Electric Association, Inc. David Eberle, Alaska Energy Authority John Cooley, Chugach Electric Association, Inc. Tim McConnell, Municipal Light and Power Moe Aslam, Municipal Light and Power Dave Fair, Homer Electric Association, Inc. Dave Calvert, City of Seward Penny Haldane, Alaska Energy Authority 3. PUBLIC COMMENT There was no public comment. 4. AGENDA COMMENTS The agenda was modified to include: 11. Old Business 13. © Section 31 Costs D. Approval of SVS Contract Award. 5. APPROVAL OF MINUTES Hearing no objection, the minutes from July 2, 1991 were approved as corrected. 6. TECHNICAL COORDINATING SUBCOMMITTEE REPORT Dave Burlingame reported on the Technical Coordinating Subcommittee (TCS) meeting August 15, 1991. All SWEC sponsored tests and other utility required tests have been completed. These tests identified some problems; subsequent tests of the solutions have proved satisfactory. 91Q3/JD1475(2) Bradley Lake Project mmittee Meeting Minutes August 23, 1991 Page 3 The plant operated at a level of 103 MW for 10-15 minutes, 90 MW for 1 hour, and survived a 90 MW load rejection of electrical power plus over 50 MW water waste. In terms of water load rejection it rejected 120 MW. The plant output is now considered firm and all participants are starting to schedule Bradley accordingly. At the last Bradley Lake Project Mangement Committee (BPMC) meeting the TCS was directed to perform an energy study evaluating how the minimum operating restrictions would affect the available energy of the plant. AEA completed those studies and found approximately 1% difference even after the utility revised energy forecasts were used. The Kenai import study is not critical at this time and is currently on hold till more studies are completed by PTI. The Bradley Lake Operating Manuals are expected to be ready for review/adoption at the next BPMC meeting and will be placed on the agenda as new business. Overall, the plant is doing well. John Cooley had a question on the efficiency- and Dave Burlingame said that this is still an outstanding item that will be addressed by Fuji next week. In response to Chairman Kelly's question, Dave Burlingame reported that a full reservoir is expected around September 15. Therefore, the minimum operating level will not be a problem in the coming months. Moe Aslam commented that recent work evaluating the disturbances on July 20 and August 3rd, has increased the level of confidence in PTI. Chairman Kelly thanked Dave and his subcommittee for the good work and the helpful report. INSURANCE SUBCOMMITTEE REPORT Brent Petrie reported that the quotes on property and boiler insurance premiums were $110,000 less than budgeted. The recommendation of this subcommittee is to keep the budget as is until June 30, 1992, and apply any overage to the next 12 month premium payment. This will improve the current cash flow situation. Hearing no objection, it was agreed to treat the premium payments in this manner. 91Q3/JD1475(3) Bradley Lake Project __mmittee Meeting Minutes August 23, 1991 Page 4 Brent also reported that the insurance subcommittee is preparing an application for business interruption insurance. The premium costs will be based on information provided in the application documents and is not known at this time. This will be an action item for a future meeting. BUDGET SUBCOMMITTEE REPORT Ron Saxton provided the Budget Subcommittee report in Ken Ritchey's absence. The payment levels were finalized and billed at a higher level for 4 months and a lower lever for the remaining 6 months. The BPMC is requested to begin thinking about the next budget, since the budget preparation process will begin in the next 6-8 weeks. The last thing to report is that there will be more cushion than originally anticipated due to Section 31 costs and the insurance expense. Mr. Saxton suggested that as a conservative approach, this cushion should be held till the following year when an adjustment would be made, although it is possible that a mid-year revision could occur if things go well. . After additional discussion on Chugach and Homer rates, Chairman Kelly asked that concurrence on the elements be reached and distributed prior to the next meeting. These will be new business items at the next meeting. OPERATION AND DISPATCH SUBCOMMITTEE REPORT John Cooley reported that this subcommittee had not met since the last BPMC meeting. At the October 25, 1991, BPMC meeting; Stan Sieczkowski stated that the operation and dispatch subcommittee had met on July 25, 1991. Brent Petrie reported that Stan was weathered in at Wrangell, but had the documents with him and they were close to completion. Stan had expected that Brad Evans would be at the meeting today to provide a committee report. The committee will meet before the next meeting, review the final documents, and present them to the BPMC at the next meeting. Motion - Interim approval by the BPMC of the Agreement for the Dispatch o Electric Power and for Related Services ("Dispatch Agreement") by and among Chugach Electric Association, Inc. and Alaska Energy Authority. Motion by E. Paul Diener, second by Tom Stahr. Under discussion, Tom Stahr commented that any dispute between Chugach Electric and the AEA that required arbitration or resolution in the Courts would first be presented to the BPMC. Tom Stahr's comment is included in the motion. The motion passed unanimously. 91Q3/3D1475(4) Bradley Lake Project. mmittee Meeting Minutes August 23, 1991 Page 5 10. if, REVIEW OF PROJECT STATUS Dave Eberle reported that all testing is now completed and the plant is in the utility's control for firm power. Commercial operation is set for September 1 and the dedication will be on September 6. The water levels are doing well. Current level is 1,162 feet with 18 feet before spill. Estimated water levels are above the historical average. Dispatchers have been told that 63 GWH's must be used between now and December 1 or spill will occur. The utilities are scheduling accordingly. Dave Eberle reported that the SVS bids were opened (low bid ASEA Brown Boveri $14.2 million) and that all bidders were considerably higher than the engineer's estimate of $9.2 million or the budget amount of $9.3 million. The notice of intent to award was issued to determine if there would be a protest (none were received). Options for revising the scope of work have been discussed, but no substantial changes have been identified. Chairman Kelly asked Dave Eberle if the contingency funds would be adequate to cover the cost overruns. Dave replied that after allowing for the $5 million for SVS, $2-2.5 million would remain. Two possible needs for these remaining funds would be site rehabilitation costs not quantified yet and any additional SVS costs. SVS is expected to be on line for commercial operation in January 1993. OLD BUSINESS Dave Burlingame requested that the previous tabled motions requesting funds for transfer tripping be considered. Installation of transfer tripping will prevent the need to take the tieline out of service when output of Bradley Lake reaches 65 MW. Chugach does not want to take the line out of service. Motion - Approval of costs to install transfer tripping not to exceed $35,000 for Chugach Electric and $62,000 for Homer Electric. Motion by Dave Highers, second by Tom Stahr. Both Homer and Chugach assured that all costs are strictly related to Bradley Lake. The motion passed unanimously. 91Q3/JD1475(5) Bradley Lake Projec. _ 1mmittee Meeting Minutes August 23, 1991 Page 6 12. NEW BUSINESS A. 91Q3/JD1475(6) Dispatch Agreement John Cooley reported on the Scheduling and Allocation Agreement. After discussion it was determined that this agreement was approved at the July 2, 1991 meeting subject to the completion of Exhibits A and B. The dispatch services agreement between Chugach and the Alaska Energy Authority is awaiting comments from AEA. This final will be distributed to all utilities prior to the next BPMC meeting. Chairman Kelly has asked that all related documents (SWEC report discussing the parameters of operating Bradley) also be redistributed. It is expected that these agreements will also go to the Operation and Dispatch Subcommittee at the same time. Approval of Committee Expenses Chairman Kelly recommended that only reviewed expenses would be considered. Expenses received but not reviewed would be held for consideration at the next BPMC meeting. Brent Petrie received a request with back-up documentation for Ater, Wynne, Hewitt, Dodson & Skerrit cost reimbursement of $17,480.33. Motion - Approval of $17,480.33 expense. Motion by Charlie Bussell, seconded. The motion passed unanimously. Section 31 Costs Motion - Section 31 balances will be allocated to ongoing BPMC costs or to defray budget expenses. Motion by Charlie Bussell, second by Tom Stahr. Discussion on documentation for Gloria resulted in the recommendation that a certifying block be added for each expenditure approved. This motion passed unanimously. Bradley Lake Project | nmittee Meeting Minutes August 23, 1991 Page 7 D. Approval of SVS Contract Award. Motion - Approval to issue SVS contract award and notice to proceed. Motion by Dave Highers, second by E. Paul Diener. This motion passed unanimously. E. Further Business Dave Eberle reported that he had received a bill from HEA for standby spinning during testing. It was decided that these and other related bills would be placed on the agenda as new business (Power generation expenses related to testing) at the next meeting. 13. COMMUNICATIONS A. Schedule Next Meeting October 25, 1991 (Friday) 10:00 a.m. Chugach Electric Association Training Room 15. ADJOURNMENT There being no further business the committee adjourned at 11:43 a.m. ve Mike Kelly, Chairman \ aS, Attest: () Cn ( \ c\ Le Charlie Bussell, Secretary 91Q3/JD1475(7)