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HomeMy WebLinkAboutBPMC Meeting November 28, 1990 1FILE COPY Po AT BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE .-- NOVEMBER 28, 1990 CALLED TO ORDER Chairman Kelly called the Bradley Lake Project Management Committee to order at 11:07 a.m. in the Training Room at Chugach Electric Association to conduct the business of the Committee per the agenda and the public notice. ROLL CALL The roll call was taken and a quorum was established. In attendance were the following: Alaska Energy Authority Robert E. LeResche - Representative Brent Petrie - Alternate Chugach Electric Association David L. Highers - Representative City of Seward E. Paul Diener - Representative Golden Valley Electric Association Michael Kelly - Representative Homer Electric Association N. L. Story, Representative Matanuska Electric Association Ken Ritchey - Representative Municipal Light and Power Tom Stahr - Representative John Cooley - Alternate Others Present: Stanley Sieczkowski - Alaska Energy Authority Dave Eberle - Alaska Energy Authority Ron Saxton - Purchasing Utilities DeAnna Scott - Alaska Energy Authority Joe Griffith - Chugach Electric Association Bob Hufman - AEG&T PUBLIC COMMENT Chairman Kelly introduced Mr. Hufman and welcomed him to the meeting. Chairman Kelly further asked if there were any members from the public present. There were none and Chairman Kelly proceeded to the next agenda item. Page 2 of 6 MODIFICATION OF AGENDA Under item 11, Old Business - Test Period Power was added as Item B. Under Item 12, New Business - Braking Resistor discussion was added as Item D. APPROVAL OF MINUTES September 21, 1990 Chairman Kelly asked if there were any objections to approving the September 21, 1990 meeting minutes as distributed. Chairman Kelly stated that there were a few grammatical errors and instead of going through each one, would hand the copy to Ms. Scott to make proper corrections. Mir. Ritchey motioned, Mr. Diener seconded that the September 21, 1990 meeting minutes be approved as corrected. The roll was called and the motion passed unanimously. TECHNICAL COORDINATING SUBCOMMITTEE REPORT Mr. Burlingame reported that the Technical Coordinating Subcommittee (TCS) met twice since the last PMC meeting. Mr. Burlingame reported that the TCS has accepted the recommendation of SWEC to delete the installation of the braking resistor at Bradley Lake. The TCS has accepted the recommendation of SWEC to install digital stabilizers on the Bradley Lake units as opposed to the analog stabilizer. Studies were conducted and revealed the two are not equal. The digital stabilizers will provide a better performance. Mr. Burlingame also reported that the TCS has accepted the recommendation made by SWEC to install one SVS at the Daves Creek northern side and the other in Soldotna. The committee also approved that an alternative bid use Thyristor Switched Capacitors at Soldotna. This would allow use of a smaller reactor transformer. The TCS has deleted certain costs from the SWEC contract related to converting the machine test data into IEEE format and recommends that the ASCC acquire the PTI Software. Mr. Burlingame stated that the TCS will be reviewing how the project should be operated under different scenarios and defining certain operating constraints. INSURANCE SUBCOMMITTEE REPORT Mr. Saxton reported that the Energy Authority received property insurance premium quotes from the Division of Risk Management. Mr. Saxton stated that the estimates came in low compared to the Four Dam Pool Insurance. For the greatest level of insurance coverage, the premium would be $215,000. The Insurance Subcommittee will be meeting in a couple of weeks to address this. Mr. Saxton stated that the Division of Risk Management will solicit actual quotes to place insurance on the Bradley project. Mr. Saxton further stated that the transmission lines are not covered and that they would be "insured" through the Renewal and Contingency fund. Mr. Saxton added that the insurance estimate the Budget Subcommittee had used was $375,000. 8. 10. Page 3 of 6 BUDGET SUBCOMMITTEE REPORT A. AEA Administrative and General Costs Mr. Ritchey reported that the Budget Subcommittee met at 8:30 a.m. on November 28, 1990. The main item discussed at the meeting was the Administrative and General (A&G) Costs of the Energy Authority. The subcommittee was directed by the PMC at the last meeting to come back to the PMC with an agreement between AEA and the PMC on the A&G costs somewhere in the area of $200,000 with some sort of a cap. It was decided in the subcommittee meeting that AEA would receive $250,000 for the FY92 A&G cost instead of $265,000. As far as a cap, none was decided. However, it was agreed upon by the Budget Subcommittee that each year this would be reviewed. Mr. Ritchey further stated that the Fiscal Year budget will need to be approved no later than April 1, 1991. Mr. Ritchey asked direction from the PMC on how this information is to be presented. Mr. Ritchey suggested: 1) it could be in the form of a presentation or 2) the Budget Subcommittee can distribute the budget report to the Managers and at the next PMC meeting it can be approved or disapproved. Mr. LeResche suggested that each principal should review the Budget material prior to the next meeting. It was also noted that if there were questions on the budget each member could address them with their representative on the Budget Subcommittee. Mr. Ritchey stated the only other change to the Budget was the Property Insurance for Bradley. B. CEA Dispatching Costs This will be addressed at the Budget Subcommittee meeting in December. C. CEA and HEA Wheeling Costs This will be addressed at the Budget Subcommittee meeting in December. Mr. Ritchey stated also the subcommittee will look at the HEA O&M Cost and whether the Bradley Lake Trustee would be the central point to pay. Mr. LeResche stated that net billing of O&M costs through Bradley Lake debt service cannot be allowed. HEA’s wheeling costs would have to be dealt with directly on the utility level. OPERATING AND DISPATCH SUBCOMMITTEE REPORT Chairman Kelly introduced Mr. Sieczkowski as the new Director of Facilities Operation and Engineering at the Alaska Energy Authority. Chairman Kelly asked the PMC if there was any objection to appointing Mr. Sieczkowski as Chairman of the Operation and Dispatch Subcommittee. There was no objection from the PMC and Mr. Sieczkowski was appointed. REVIEW OF PROJECT STATUS Mr. Eberle reported that the project is now 87% complete. The diversion gates at the dam were closed October 31, 1991 for start of the reservoir fill. The reservoir has risen only six inches due to extremely cold temperatures. The streams have frozen over and most of the water entering the reservoir is being released for the 40 cfs minimum fisheries flows. The lower power tunnel concrete liner has been completed and grouting Ue Page 4 of 6 is now three-fourths complete. The powerhouse generators and major components are now in place. The substation and transformers are complete and are being tested. Hook up to HEA at Bradley Junction is scheduled for January 15, 1991. The transmission line has been completed and the contractor is finishing work on the punch list items. Mr. Eberle stated that everything is on schedule and the commercial operation date is still set for September 1, 1991. Mr. LeResche asked when the site restoration contract would go out for bids. Mr. Eberle responded that it will be issued in January 1991 and will be awarded in April or May 1991. Mr. Saxton questioned whether the site restoration cost would be over or under the amount that has been set aside. Mr. Eberle responded that it likely will be under the dollar amount allowed. Mr. Eberle further stated that the only outstanding contract after the site restoration contract would be the SVS contract. This RFP will be released in January 1991 and the contract awarded in May or June 1991. OLD BUSINESS A. Start-up Test Protocol Document Mr. Eberle distributed to the PMC a copy of the Test & Start-Up Program that will be used for the Bradley Lake project and the Start-up Sequence. Mr. Eberle stated that this information was distributed at the Technical Coordination Subcommittee meetings. The spinning of the units (dry) will take place at the end of April. The tunnel will be watered up and tested in early May. Both units will be on line for testing in June/July with load testing after the first synchronization. Mr. Eberle stated that the dispatchers would need to get involved in this portion of the start-up and testing. SWEC has established a milestone date of August 1, 1991 to complete testing. This is not to be confused with the commercial operation date of September 1, 1991. Mr. Eberle reported that a start-up coordination group will need to be organized in May. At that time, we will be inquiring as to any black out dates for each utility. Mr. LeResche asked Mr. Eberle to discuss how construction crews are giving over completed items to Operations. Mr. Eberle stated that after a construction item has been completed, the item is tested by the contractor. After the contractor has completed its testing, AEA then tests the item a second time before the item is accepted. After AEA has accepted the item, AEA operation personnel hang their tags on the equipment and assume operational control of the item. B. Test Period Power Chairman Kelly stated that according to the September 21, 1990 meeting minutes there was discussion of test period power, and that a group was created to address this. Chairman Kelly asked if a meeting or teleconference had taken place to address this. Mr. Saxton replied no. Chairman Kelly asked Mr. Highers if he would look into the power cost adjustment with APUC. Mr. Highers concurred. Mr. Stahr stressed his concern with the fluctuation of the cost between the "test" period and the commercial operation period. 123 Page 5 of 6 NEW BUSINESS A. Amendment No. 1 of the Intertie Operating Committee Agreement Mr. Saxton reported that REA has accepted the language of the Amendment No. 1 of the Intertie Operating Committee Agreement. What is now needed is to have each utility governing body approve the amendment. This action is needed to amend the insurance clause and it will need to be sent to REA. This allows the Municipal Utilities and the State to self-insure and not the Co-ops. Chairman Kelly requested that each member receive an original document to be addressed by the Board of Directors of each utility. Approval of PMC Expenses Mr. Saxton distributed to the PMC a copy of the schedule of Unreimbursed Bradley Lake Costs - As Submitted to Ater Wynne November, 1990. The following costs are identified: PROJECT COSTS ML&P - Finance Team Activities $ 1,976.76 New York Trip Ater Wynne- BPMC Legal and Finance Costs Associated with Closing 12,965.38 Chugach 1990 Utility Opinion Letter 2,318.30 GVEA TCC Expenses 1,181.69 HEA TCC Expenses 910.84 TOTAL $19,352.47 Mr. LeResche motioned, seconded by Mr. Story that the Project Costs totaling $19,352.46 be approved for reimbursement. The roll was call and the motion passed unanimously. Mr. Saxton stated that Ms. Rawitscher of AEA has not looked at these submittals and if any adjustments are needed, they will be made at a later date. Mr. Saxton further stated that, in addition, the following Section 31 costs are associated with the Bradley Lake Project Management Committee. The following costs were identified as: SECTION 31 COSTS - Bradley Organization GVEA $ 6,504.87 HEA 915.41 Ater Wynne 18,854.14 TOTAL $26,274.42 Mr. LeResche motioned, seconded by Mr. Diener to approve the Section 31 Cost as reported. The roll was called and the motion passed unanimously. Page 6 of 6 G: Approval of HEA Bradley Junction Cost Mr. LeResche stated that the Technical Coordinating Subcommittee had previously discussed and recommended that HEA install the dead-end, switchin structure at Bradley Junction. This was addressed several times at the TC meeting and it was agreed that HEA could best accomplish this job. Mr. LeResche motion, seconded by Mr. Diener that the work completed by HEA for the installation of the dead-end switching structure at Bradley Junction be approved as a project cost and that reimbursement be made to HEA. The roll was Called and the motion passed unanimously. D. TCS - Braking Resistors (Continued Discussion) Mr. Stahr asked if funds allocated for the braking resistors could be set aside for other uses. He stressed that he would prefer to have the braking resistors sitting at the project or have the funds already set aside if the braking resistors are needed. Chairman Kelly asked if this could be added to the project budget if it is determined that the braking resistors are needed at a later date. Mr. Eberle stated that the cost of the braking resistors are part of the overall project budget, and there is no need to set these funds aside at this time. Mr. Eberle stated the project budget will not be closed out until the SVS’s are in place. Mr. LeResche stated that the remainder of the construction funds are in the hands of the trustees and all of the project money will be there until the project is closed. After a long discussion Mr. Stahr_ moved, seconded by Mr. Story that the PMC approve the deletion of the braking resistors with the provision the PMC reserves the right to recommend installation prior to the close out of the project. The roll was Called and the motion passed unanimously. E SCHEDULE NEXT MEETING March 5, 1991 Chugach Electric Association Training Room 10:00 a.m. ADJOURNMENT There being no further businessy before the Committee, the Committee adjourned by acclamation at 1:15 p.m. x ed ——_—— ry Approved by PMC at meeting held March 5, 1991.