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HomeMy WebLinkAboutBPMC Meetring - July 2, 1991 210. 11. 12. 13, 14, 15. \e a“ BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE JULY 2, 1991 CHUGACH ELECTRIC ASSOCIATION TRAINING ROOM - 10:00 A.M. CALL TO ORDER 10:00 A.M. ROLL CALL PUBLIC COMMENT AGENDA COMMENTS APPROVAL OF MINUTES June 6, 1991 TECHNICAL COORDINATING SUBCOMMITTEE REPORT INSURANCE SUBCOMMITTEE REPORT BUDGET SUBCOMMITTEE REPORT a. Chugach and Homer Wheeling Costs OPERATION AND DISPATCH SUBCOMMITTEE REPORT BRADLEY LAKE AGREEMENT SUBCOMMITTEE REPORT REVIEW OF PROJECT STATUS UNFINISHED BUSINESS a. Bernice Lake Gas Turbine Generator Operation Costs NEW BUSINESS = 2 Ckebirr 0 Oftrer> \a. Resolution Regarding Project Completion and Commercial Operation Orarlle (, Upper Battle Diversion © Allocation and Scheduling Agreement 2, (ech cafy— COMMUNICATIONS a. Schedule Meeting ADJOURNMENT RECORD FILE NO LOPY Peo B-lhd My 7/a.14) Kelly Burlingame Petrie Ritchey Sieczkowski Sieczkowski Eberle Highers Petrie Eberle Sieczkowski CHUGACI, ELECTRIC ASSOCIATION, INC. RECORD UOPY FILE NO July 2, 1991 Mike Kelly, Chairman TRO 3-liimMin 7/2/49 L Bradley Lake PMC Alaska Energy Authority 701 E. Tudor Road Anchorage, Alaska 99519 Mr. Chairman: The Bradley Lake Project Management Committee (BPMC) discussed the conditions under which a combustion turbine located on the Kenai Peninsula would be operated. As Chairman, you suggested that the utilities, Chugach Electric Association and Homer Electric Association, who have generation assets on the Kenai Peninsula coordinate a joint position on this issue. The general managers of both utilities met subsequent to the meeting of June 6, 1991 and have agreed on the following items: I. After Bradley Lake has been declared commercially operable, during periods when Bradley generation is not scheduled by any of the participants, operation of a Kenai located gas-fired turbine will be used as required to meet the same quality of service as historically experienced by Homer. If Bradley Lake is scheduled by any or all participants, then the capacity available within the stability and reliability limits during that scheduled period shall be shared by participants in accordance with their respective shares as defined by the Bradley Lake Power Sales Agreement and the Scheduling Agreement. Neither Chugach nor AEG&T will solely absorb any costs associated with the operation of a gas-fired turbine located on the Kenai Peninsula which enhances the output or stability of Bradley Lake and provides benefits to each of the participants. All scheduling participants benefit from the increased output and/or capacity available from Bradley Lake as a result of the operation of a gas-fired turbine. Each scheduling participant must pay its fair share of the costs of making additional capacity available through the use of a gas-fired turbine. We specifically reject the notion that operation of a gas-fired turbine located on the Kenai is necessary at all times and that others may enjoy the benefits of increased Bradley output at no cost. Chugach, AEG&T and HEA have not made any contractual commitments to operate a combustion gas-fired turbine on the Kenai Peninsula after Bradley Lake becomes operational. 5601 Minnesota Drive ¢ P.O. Box 196300 « Anchorage, Alaska 99519-6300 Phone 907-563-7494 © FAX 907-564-8406 or 907-562-0027 Mike Kelly, Chairman -2- July 2, 1991 We base these positions on the following known or calculated technical aspects of Bradley Lake. i The voltage on the HEA system can be supported by Bradley Lake when it is on line, or by any other means available to Chugach or AEG&T to meet the service requirements of the Peninsula. The specific geographic location of any added, shared resource does not alter the expected quality of service for any service area. 2s To maintain required stability of the interconnected systems when Bradley Lake is operating at full capacity, the installation of SVS components is required. The SVS is currently scheduled to be in operation by December 1992. Until this installation is complete and proven effective, export of Bradley Lake energy above the level of approximately 2 MW in winter and 16 MW in summer is not possible without a gas- fired turbine operating on the Peninsula if Cooper Lake generation is on line. Measures to enhance the performance or flexibility of Bradley Lake above these levels, such as concurrent operation of a Kenai area gas turbine, must be considered by the Committee as integral parts of the costs of operating the project. 3. The operating levels of Bradley Lake during the interim operating period have not been set to date, but are expected to be approximately 30 MW minimum to 60 MW maximum without the operation of a Kenai located gas turbine. If such a turbine is operated, then the minimum level of Bradley Lake is approximately 10 MW and the maximum is between 65 and 75 MW. No operation above 65 to 75 MW is prudent due to the instability of the interconnected systems if a single contingency event occurred. We suggest that the BPMC direct the Operations and Dispatch Subcommittee to prepare recommendations concerning the allocation of costs to the project participants utilizing Bradley energy or capacity made available solely by the running of gas-fired generation exclusively to improve the flexibility or performance of Bradley Lake. These recommendations should be developed and presented to the participants before the next scheduled BPMC meeting. Final resolution of this issue must be adopted prior to July 26, 1991, Sincerely, CHUGACH ELECTRIC ASSOC., INC. HOMER FLECTRIC INC. hee —— iLA ib David L. Higher N. L. Story General Manager General Manager Ther & CHUGACH ELECTRIC ASSOCIATION, INC. han vOPY Anchorage, Alaska PRO 3-4) mW July 2, 1991 rial, TO: Bradley Lake Project Management Committee FROM: David Burlingame, TCS secretary fF SUBJECT: TCS Report The following items are a brief synopsis of the activities of the TCS since the last PMC meeting: Operating Guidelines - SWEC has begun gathering all of the reports and recommendations made concerning the operation of Bradley Lake and the Kenai system. This together with certain plant operating procedures will be distributed to all of the participants for their use in scheduling their allocation. The TCS will not review each of the studies prior to their incorporation if they have previously been accepted by the TCS. Start-Up and Testing Program - A subcommittee to the TCS has met and agreed on the tests required for Bradley Lake. Some of the tests will not be performed until after the SVS systems are installed. The program has not been presented to the TCS, but its approval is expected. Minimum Operating Limits - The determination of the minimum operating limits for Bradley Lake has bogged down and is awaiting direction from the PMC. A separate advisory item has been prepared and is attached. Long Term Operating Limits - This study which is to define the operating limits of Bradley Lake after the installation of the SVS systems has not been started to date. It will not be started until after the interim operating and import study have been completed. DWB/pna DWB5-JLYPMC Attachment — CHUGACH ELECTRIC ASSOCIATION, INC. ~~~ Anchorage, Alaska z/ela = July 2, 1991 TO: Bradley Lake Project Management Committee FROM: David Burlingame, TCS Representative 77 SUBJECT: Kenai Import Levels - Advisory Item The PMC has asked the TCS to determine the level of Kenai imports which should be allowed based on a reasonable degree of loadshedding in the HEA system. The TCS was directed to determine what level of loadshedding was considered reasonable without discussion of contractual agreements or understandings. The PMC reserved the exclusive right to interpret these matters. The TCS approach to this matter was to study Kenai area dispatch cases over the past year and to assess the risk of loadshedding the Kenai has experienced on a historical basis. The risk of historical loadshedding would then be selected and the risk of loadshedding after Bradley Lake would be set to match the historical risk as much as possible. PTI has completed the original studies set forth by the TCS and made a global recommendation that without a gas turbine, Bradley Lake should not be operated at a MW level which is below the load left on the Kenai after the desired loadshedding has occurred. Operating Bradley Lake below this minimum load level will result in a blackout of the Kenai following the loss of the 115 kV system to Anchorage. The committee basically bogged down at this point discussing contractual agreements and commitments between the participants. Some of the members felt that even though these issues were reserved to the PMC level, they should be discussed and possible solutions outlined at the TCS. The final agreement of the committee was to recommend to the PMC that Bradley Lake not be operated at a level below the load level left on the Kenai after the final stage of desired loadshedding has occurred. Based on the historical risk of loadshedding as outlined in the PTI report, the majority of the committee felt the second stage of loadshedding for the HEA system would be appropriate after the completion of Bradley Lake. The amount of load to be shed by HEA in the first two stages may be different than exists today as PTI revises the loadshedding schedule to reflect a hydro based system. Some members of the TCS did not want to adopt an operating criteria which would restrict the operation of Bradley Lake to this degree without specific direction from their General Managers. Bradley Lake Project Management Committee Kenai Import Levels - Advisory Item July 2, 1991 Page 2 If the minimum operating point for Bradley Lake is set such that during most instances, the Kenai will not experience more than the 2nd stage of loadshedding for any single contingency, Bradley Lake would be limited to a minimum output of 27-30 MW in the summer and 35-40 MW in the winter, whenever it is operated without a gas turbine and connected to the Anchorage system. In an islanded condition Bradley Lake would be restricted to no more than a 32 MW output, with gas fired turbines on-line. PTI has verified that operating a gas turbine on the Kenai will eliminate most of the minimum operating restrictions on the Bradley Lake units. The TCS has asked PTI to perform some additional studies to bracket the historical risk of loadshedding and the expected risk of loadshedding for the Kenai area. The TCS would like the PMC to review the philosophy of determining the historical risk of Kenai loadshedding and using this assessment to determine the acceptable risk of Kenai loadshedding after the incorporation of Bradley Lake into the railbelt used by the TCS and provide further explicit direction to the TCS in regards to this issue. Other options would be to set no restrictions on the minimum operation of Bradley Lake, which puts the Kenai at risk of a blackout, allow more loadshedding on the Kenai which effectively opens the operating window for Bradley Lake, or reduce the amount of loadshedding on the Kenai which would further restrict the operation of Bradley Lake. For reference in assessing the risk to the Kenai system, in the current loadshedding system for the Railbelt, each utility is scheduled to shed the following percentage of their loads for single contingency events (only system Stage #1 is shown). ML&P - 11% Chugach - 13% GVEA - 32% HEA and MEA do not presently shed on the system Stage #1. PTI has recommended that HEA's loadshedding point be no higher than it presently exists at 59.0 Hz. The loadshedding study being performed under the IOC would therefor be restricted that unless the first system loadshedding point was lowered, HEA would not be subject to the first stage of loadshedding for interconnected system trouble, such as normal unit trips. Bradley Lake Project Management Committee Kenai Import Levels - Advisory Item July 2, 1991 Page 3 HEA would shed approximately 57% of their load if the operating guideline was based on Stage #2 loadshedding and during system scheduling to match this case, the 115 kV line to Anchorage was lost. The following are some general guidelines or possibilities for the minimum operation of Bradley Lake without a gas turbine based on various Kenai load levels and loadshedding. Kenai Kenai % Loadshed Bradley Minimum Load Loadshedding Operating Point 80 MW 20 MW 25% 60 MW 80 40 50% 40 80 60 75% 20 80 80 100% 0 50 MW 10 MW 20% 40 MW 50 20 40% 30 50 30 60% 20 50 50 100% Oo It is requested that each of the General Managers provide direction to their TCS representatives as to what level of loadshedding is appropriate for the Kenai system such that each TCS representative can comfortably set the acceptable loadshedding level and consequently the operating criteria for Bradley Lake. DWB/pna DWB5-PMCJLYAD JUL @1 ’91 24:12PM HEA HOMER RECORD copy’ 3 FILE NO Pr Ce — Homer Electric Association, Inc. CENTRAL OFFICE: 3977 LAKE STREET @ HOMER, ALASKA 99603 @ (907) 235-8167 PRO O- 1,3 HEM July 1, 1991 PRO Sire on. Mr. Charlie Bussell Executive Director oe Alaska Energy Authority os P.O. Box 190869 NS Anchorage, AK 99519-0869 RE: Proposed Bradley Lake Allocation and Scheduling Procedures Dear Mr. Bussell: We have completed management review of the subject procedures being considered for adoption on July 2 and have the following comments: 1) Section 4 (d) (ii) specifies that when a monthly Net Allocation is estimated to be less than the previous forecast that the negative adjustment be carried forward to the following water year, It is our understanding that the intent of the participants under these procedures is to balance all accounts at the end of the water year. Carrying an estimated ‘4 negative balance forward to the following water year would seem to be contrary to that intent. Also it would allow a participant who happened to be overdrawn at this point to delay paying back the other participants until the following water year. It would appear that there should be an intent to keep the accounts as current as possible so one participant cannot use someone else's water and wait until next water year to pay it back. This could be especially detrimental to a participant saving up to use a large block later in the water year. 2) Section 5 (g) (ii) sets a fixed contractual compensation of $5/Mw/Hr by a Purchaser scheduling another Purchaser's Project Capability. We believe this compensation should be a market transaction made at the time of purchase scheduling because the value of this will vary over time. Presumably we want to adopt these procedures and have them serve for an extended period of time. Therefore we should not set specific values for something that will surely vary over time, and could vary with each transaction. sine eee oe : a meee eeavekkeneee FA RANSM x 7 to: Charlie Busse !! — pet. PER axe SG/- 9584 PAGES rrom_.Dave Fair _ pwone: a2s-3°Sf L CO: FAX: LS 3313 Postit~brand fax transmitta! memo 7671 ans ic oa Xe! Stan S, Dave FE. BNP weeeeeeke ' JUL @1 791 94:13PM HEA HOMER P.4 Mr. Charlie Bussell July 1, 1991 Page 2 The Operations and Dispatch Subcommittee has put a great deal of effort into this document, and overall it will serve the purpose intended. We believe, however, the above two issues should be reviewed and modified by the PMC. Sincerely yours, HOMER ELECTRIC ASSOCIATION, INC. 4 iL N. L. Story General Manager NLS/ js