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HomeMy WebLinkAboutBPMC Meeting January 14, 1993 3SENT BY: 1- 8-93 ; 2:07PM: — CHUGACH ELECTRIC> AK ENERGY AUTHORITY:# 1/ 3 RECORD UOPy Y 2 lil Mua Ugac: ELECTRIC ASSOCIATION, INC. sf —~ 1/ / 1193 Y 5601 Minnesota Drive Anchorage, alaska 90518-5200 FACSIMILE TRANSMITTAL SHEET Phone: 907-563-7494 ———=— = ATE: 1/8/93 TO: Stan Sieczkowski, Dir. Facilities Ops. & Eng. SUBJECT: Bradley Draw-down COMMENTS/MESSAGE: TOTAL NUMBER OF PAGIS TRANSMITTING: 3 (Includes: Cover Sheet) IF TRANSMISSION IS INCOMPLETE, PLEASE CALL: (907) 762-4633 TIME/DATE OF TRANSMISSION: BY: ALAN OR JC Scenes EE ee SENT BY: 1- 8-93 : 2:07PM ; CHLGACH ELECTRIC AK ENERGY AUTHORITY;# 2/ 3 . 1" ems CHUGACH sLECTIC January 8, 1993 TO: Mike Kelly, Golden Valley Electric Assn. FAX: 451-5633 Norman Story, Homer Electric Assn. FAX: 235-3323 Tom Stahr, Anchorage Municipal Light & Power FAX: 263-5204 Ken Ritchey, Matanuska Electric Assn, FAX: 745-9368 Paul Diener, Seward Electric Utility FAX; 224-3248 Bob Hufman, AEG&T FAX; 474-0549 FROM: David L. Highers RE; Bradley Lake Draw-dpwn Please review the attached memo fram Gene Bjornstad to me regarding water draw-down at Bradley, This is a significant action on short notice that will have un extreme financial impact. I plan on this being discussed at the PMC meeting on the 14th. If you have comments, pleuse call or fax as soon as possible. Attachment ce: Ron Saxton FAX: 503/226-0079 5601 Minnesota Drive = P.O, Box 196300 ¢ Anchorage, Alaska 99519-6300 Phone 907-563-/494 # FAX 907-562-0027 SENT BY: 1- 8-93 + 2:07PM ; CHUGACH ELECTRIC> AK ENERGY ALTHORITY:# 3/ 3 CHUGACH ELECTRIC ASSOCIATION, ENC. Anchorage, Alaska January 8, 1993 TO: David L. Highers, General Manager A FROM: Eugene N. Bjornstad, Executive Manager, Operating Divisions SUBJECT: Bradley Lake Draw-down I was informed Thursday, January 7, 1993 by Dave Burlingame, our representative to the Technical Coordinating Committee, that Bradley Lake will have to be drawn down by May 1993 in order to perform debris cleaning work around the intakes to the fish water bypass system. This action is apparently necessary because of rocks and other debris partially blocking the inlet. This blockage prevents the project from releasing the FERC mandated amount of water for fish spawning. This draw-down could have a major impact financially and also on the maintenance schedule of our combined cycle generation units. I suspect it also could have a significant impact on the other railbelt utilities. This issue should be placed on the agenda for the next PMC meeting so that all General Managers can come prepared to get some response to unanswered questions and discuss AEA’s proposed plan of action. 1 believe it is appropriate that the ABA should address the following questions: 1. Why is it necessary to draw-down the lake levels to accomplish this cleaning? 2s Has an analysis of the situation been performed by an independent consultant? Are there other altcrnatives that have been fully explored? 3 Will the clean-up actions be characterized as maintenance to be paid for by the participants? by the project designers? contractors? 4, Will the proposed plan prevent situation this from developing again? 5: How much is the cost estimate? 6. What happens if AEA does nothing? 7, What happens if AEA delays one or more years? 1 would recommend that other utilities be apprised of this situation ASAP, ATTACHMENT 1 RECORD VOPY FILE WO PRO F-).) mw f14193 BRADLEY LAKE OPERATION AND DISPATCH SUBCOMMITTEE SUMMARY OF MEETING JANUARY 7, 1993 CORRESPONDENCE Revised Allocation & Scheduling Procedures, November 24, 1992 Revised Allocation & Scheduling Procedures, December 23, 1993 OPERATIONS A draft operation summary report format was presented by AEA. Beginning with January data, the report will provide project generation statistics and reservoir information in a condensed format. The report will be distributed as an attachment to the O&D Subcommittee meeting minutes. The status of utility DECnet programming was discussed. Due to differing utility information needs and the limited availability of its system programmer, AEA requested AML&P and GVEA develop and implement their own DECnet programming. No significant problems were discovered during the annual maintenance performed in November. Minor problems, most attributed to contractor oversight, were corrected. As anticipated, a small amount of tunnel debris was found. Scarring (due to the debris) on two of the needle nozzles is causing insignificant leakage. No water was detected in the turbine bearing oil. A one day outage will be needed to accommodate repair of a nitrogen leak on one of the transformers. It is anticipated that, in order to clear and reconfigure the fish water by pass intakes, the reservoir level will need to be lowered to 1068 feet by May 1, 1993. A preliminary diving inspection indicated the intakes are obstructed by large rocks, debris and silt, preventing sufficient flow of water to meet minimum FERC flow requirements. In anticipation of the reservoir draw-down, AEA is preparing a reallocation plan to maximize use of project water between February and May. Bradley Lake O&D Subcommittee January 7, 1993 Meeting Summary page 2 of 2 ACTION ITEMS Revisions to the Allocation and Scheduling Procedures: The Subcommittee approved recommendation of the revised Allocation & Scheduling Procedures to the BPMC for adoption. The revised procedures will be distributed to the BPMC in sufficient advance for consideration at the February meeting. All revisions will be presented to the BPMC in a manner which clearly defines the differences between the original procedures and the proposed changes. HEA Line Losses: HEA has not completed line loss calculations. The information will be presented to the next Subcommittee meeting. NEXT MEETING Thursday, January 28, 1993 10:00 a.m. Alaska Energy Authority Main Conference Room ATTACHMENT 3 RECORD VOPY FILE NO ALASKA POWER ADMINISTRATION (APA) i 3-)) Eklutna Purchase Agreement dated August 2, 1989, with Chugach, MEA sail ML&P sets out 4/93 the terms and conditions to implemented if Congress authorizes the sale. The utilities would get We undivided interests in the project equal to their current power purchases. Interconnection and Wheeling Agreement dated April 25, 1974, with Chugach. Term of 35 years. Allows Chugach to wheel over APA facilities to MEA. Interconnection and Wheeling Agreement dated xxx, with ML&P. Term xx. Allows ML&P to interconnect its system with APA facilities. Power Sales Contract 85-79AP 10004, dated October 13, 1979, with Chugach expires December 31, 1993. Take-or-pay contract for 9 MW and 45,900,000 kWh of firm power. Similar contracts have been in existence since 1954. Power Sales Contract 85-79AP 10005, dated October 13, 1979, with ML&P expires December 31, 1993. Take-or-pay contract for 16 MW and 81,600,000 kWh of firm power. Similar contracts have been in existence since 1954. Power Sales Contract 85-79AP 10006, dated October 13, 1979, with MEA expires December 31, 1993. Take-or-pay contract for 5 MW and 25,500,000 kWh of firm power. Similar contracts have been in existence since 1954. Dispatch Agreement dated September 1992 with ML&P, expires in 1997. Provides for ML&P to dispatch the Eklutna Power plant. Transmission ROW Agreement dated xx with Chugach grants Chugach the right to build a double circuit 230 KV line on Eklutna right of way. In return APA gets to use one of the circuits for Eklutna power deliveries into Anchorage. Transmission Maintenance Agreement dated xx, 1987?, with ML&P for maintenance of 115 KV circuit along Northern Light Blvd to Anchorage Substation. Transmission Maintenance Agreement dated xx, 1987?, with MEA for maintenance of 115 KV circuit from Palmer to Fossil Creek. ALASKA ENERGY AUTHORITY (AEA) Alaska Intertie Agreement with Chugach, FMUS, AEG&T, ML&P and GVEA dated December 23, 1985. May be terminated at any time upon mutual consent of all participants, participants may terminate participation after 4 years advance written notice. Agreement provides for interconnected operation among the participants including obligations and ' Draft only, not yet signed 3878.JSC Agreements Among Railbelt Utilities January 11, 1993 2 responsibilities. Also provides for the operation and maintenance of the intertie facilities between Douglas and Goldhill with GVEA operating the northern half and ML&P operating the southern half. Establishes an Operating Committee which currently has the following subcommittees: Machine/Ratings; SCADA/Metering/Communications; Dispatch; and, Reliability/Protection. Addendum No. | to which all participants must be signatories establishes reserve capacity and operating reserve responsibility. Transmission Lease Agreement dated xx, 1985? with MEA for lease of the 115 KV line between Teeland and Douglas for use as part of the intertie. Transmission Maintenance Agreement dated xx, 1985? with MEA for maintenance of the southern half of the Alaska Intertie transmission line and substation facilities at Douglas. Transmission Maintenance Agreement dated xx, 1985? with GVEA for maintenance of the northern half of the Alaska Intertie transmission line and substation facilities at Healy and Goldhill. Substation Maintenance Agreement dated xx, 1985? with Chugach for maintenance of Alaska Intertie substation facilities at Teeland. SCADA Agreement dated xx, 1985? with ML&P for reimbursement for capital facilities required to support being the southern operator for the Alaska Intertie. SCADA Agreement dated xx, 1985? with GVEA for reimbursement for capital facilities required to support being the northern operator for the Alaska Intertie. Bradley Lake Power Sales Agreement with Chugach, AEG&T, GVEA, ML&P and SES dated December 8, 1987 with a term of 50 years. Take-or-pay contract for the output of the Bradley Lake project. Establishes a Project Management Committee to oversee operation of the project. The PMC currently has the following subcommittees: Budget; Insurance; Agreements; Operations & Dispatch; and, Technical Coordination. Bradley Lake Dispatch Agreement dated February 19, 1992, with Chugach. Provides for Chugach to dispatch the Bradley Lake Project. ‘Transmission Maintenance Agreement dated xx, 1993 with HEA for maintenance of the Bradley Lake transmission facilities between the project and Bradley Junction. ‘Substation Maintenance Agreement dated xx, 1993 with Chugach for the maintenance of the SVC equipment at Daves Creek substation. ' Draft only, not yet signed 3878.JSC Agreements Among Railbelt Utilities January 11, 1993 3 ‘Substation Maintenance Agreement dated xx, 1993 with Chugach for the maintenance of the SVC equipment at Soldotna substation. Substation Facilities Agreement dated xx, 1992 with Chugach for installation of SVC equipment at Daves Creek Substation. ‘Substation Facilities Agreement dated xx, 1993 with Chugach and HEA for installation of SVC equipment at the Soldotna substation. ‘Transmission Interconnection Agreement dated xx, 1993 with HEA to allow Bradley Lake transmission lines to interconnect with the HEA system. Provides for operation of HEA facilities at Fritz Creek and Diamond Ridge substations. ALASKA ELECTRIC GENERATION & TRANSMISSION COOPERATIVE, INC. (AEG&T) Power Sales Agreement dated xx with HEA, expires xx. Provides that HEA purchase all of its electric capacity and energy requirements from AEG&T. Power Sales Agreement dated xx with MEA, expires xx. Provides that MEA purchase all of its electric capacity and energy requirements from AEG&T. HOMER ELECTRIC ASSOCIATION, INC. (HEA) Agreement for Sale of Transmission Capacity dated March 7, 1989, with AEG&T, Chugach, GVEA and ML&P with a term of 50 years. HEA agrees to sell the other Bradley Lake participants capacity on the transmission line between Bradley Junction and Soldotna to carry their Bradley Lake share. CHUGACH ELECTRIC ASSOCIATION, INC. (Chugach) Services Agreement dated December 8, 1987, with HEA, MEA, ML&P, GVEA, SES and AEG&T with a term of 50 years. Chugach agrees to deliver to the participant, its Bradley Lake energy which has been delivered to the Soldotna substation. Agreement for the Sale of Electric Power and Energy dated September 1985 with HEA and AEG&T, expires on January 1, 2014. Provides for the sale of 73 MW of capacity with appropriate reserves and at least 350,000 MWh of energy annually to AEG&T for HEA. Requires semi-annual planning meetings among the parties. : ' Draft only, not yet signed 3878.JSC Agreements Among Railbelt Utilities January 11, 1993 4 Homer Lease Agreement dated September 1985 with HEA, expires on January 1, 2014. Provides for the lease to Chugach of 69 KV and 115 KV transmission lines between Bernice Lake and Soldotna, of 115 KV transmission line between Quartz Creek and Soldotna, and the majority of the 115 KV portion of the Soldotna substation. Chugach will operate and maintain (minor repairs only) the leased facilities. Bradley Lake Scheduling Agreement dated September 29, 1992, with HEA and AEG&T with a term of three years, renewable. Chugach pays HEA/AEG&T $112,000 annually for the right to schedule when HEA receives its share of the Bradley Lake project. For scheduling purposes HEA/AEG&T’s Bradley Lake energy is commingled with Chugach’s Bradley Lake energy. Soldotna 1 System Use & Dispatch Agreement dated December 1991 with HEA and AEG&T with a term of 10 years. Chugach provides dispatch service to HEA for Soldotna 1 when HEA decides that the unit is needed for HEA. Chugach provides an economical source of fuel for the unit and in return can use the unit for any system use that Chugach has. Variable O&M plus a margin is paid for actual use of the unit. Chugach agrees to generate 322,000 MWh on the unit during the term of the agreement. The term is extended by three years if Chugach uses the unit extensively during the last three years of the agreement. Interconnection Agreement dated December 3, 1983 with ML&P, expires December 31, 2014. Provides for interconnected operation with ML&P, sharing of operating reserves, sale and purchase of emergency, maintenance, and economy energy. Is generally superseded by the Alaska Intertie Agreement except when the line to Fairbanks is open. Established an Administrative Committee which has not been functional. Net Billing Agreement dated December 16, 1987, with MEA and AEG&T. Provides that MEA/AEG&T’s share of the output of the Eklutna and Bradley Lake projects will be commingled with Chugach’s other energy resources for scheduling and rate making. MEA/AEG&T will make the Eklutna and Bradley Lake payments but Chugach will credit MEA/AEG&T the equivalent amount on the power invoice from Chugach. Modified Tripartite Power Sales Agreement dated April, 1989 with MEA/AEG&T, expires on December 31, 2014. Provides for the sale of MEA’s full requirements of electric capacity and energy to AEG&T. MEA/AEG&T may transition to a net requirements status after a five year notice period. Semi-annual planning meetings among the parties is required. Non-Firm Power Sales Agreement dated May 18, 1988, with GVEA, expires on the 20th anniversary. Provides that Chugach will sell and GVEA will purchase all of GVEA’s non-firm energy needs from Chugach when available. Non-firm energy is defined as all of GVEA’s load in excess of that produced by GVEA units. Established an Operating Committee to meet ' Draft only, not yet signed 3878.JSC Agreements Among Railbelt Utilities January 11, 1993 5 quarterly that has not been functional. Joint Use Agreement dated September 1984 with Seward with a term of 25 years. Provides for joint use of ROW between Daves Creek substation and Lawing. Net Billing Agreement dated June 7, 1991, with Seward. Provides that SES’s share of the output of the Bradley Lake project will be commingled with Chugach’s other energy resources for scheduling and rate making. SES will make the Bradley Lake payments but Chugach will credit SES the equivalent amount on the power invoice from Chugach. Wholesale Power Agreement dated September 1984 with Seward, automatically renewed annually upon completion of the initial term of ten years. Chugach agrees to sell and Seward agrees to purchase electric power up to the maximum demand listed in the contract. ' Draft only, not yet signed 3878.JSC PF gh State of Alaska N Walter J. Hickel, Governor Alaska Energy Authority RECORD UOpy A Public Corporation FILE NO 14/4 3 i MEMORANDUM PRO 3-11 REP HO: Chairman David Highers Bradley Lake Project Management Committee FROM: Ronald A. Garzini Executive Director ae Alaska Energy Authority SUBJECT: Delegation of Voting Authority - Stan Sieczkowski DATE: January 14, 1993 In the event that Brent Petrie or myself are not available to attend or vote in the January 14, 1993, Bradley PMC meeting, or future meetings, Stan Sieczkowski is hereby authorized to be the second alternate voting representative for the Authority. /tg PO. Box 190869 704 East Tudor Road Anchorage, Alaska 99519-0869 (907) 561-7877 Fax: (907) 561-8584 10. 11. 12. 13. 14. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA January 14, 1993 Chugach Electric Association, Inc. Training Room 10:00 a.m. CALL TO ORDER 10:00 a.m. ROLL CALL PUBLIC COMMENT AGENDA COMMENTS APPROVAL OF MEETING MINUTES - November 20, 1992 TECHNICAL COORDINATING SUBCOMMITTEE REPORT BUDGET SUBCOMMITTEE REPORT A. Bradley Lake Construction Cost Audit - Update B. FY93 Budget, AEA Administrative Costs - Update C: Bradley Lake O&M Cost Audit - Update AGREEMENTS SUBCOMMITTEE REPORT OPERATION AND DISPATCH SUBCOMMITTEE REPORT REVIEW OF PROJECT STATUS OLD BUSINESS A. Spinning Reserves/Under Frequency Load Shedding Update B. Bradley Scheduling vs. Spin Requirement NEW BUSINESS A. Approval of Committee Expenses COMMUNICATIONS A. Schedule Next Meeting ADJOURNMENT Highers Burlingame Ritchey Sieczkowski Sieczkowski Eberle Lovas Saxton Ritchey DATE: TO: FROM: SUBJECT: Alaska Energy Authority RECORD VOPY MEMORANDUM FILE NO FRO Bhat nec p/iy fa ° December 23, 1992 JV Bradley Lake Hydroelectric Project Project Management Committee Brent N. Petrie B A) { i FER Secretary Project Management Committee Meeting January 14, 1993 The next meeting of the Bradley Lake Project Management Committee is scheduled Thursday, January 14, 1993. The meeting will begin at 10:00 a.m. in the Training Room at Chugach Electric Association, Anchorage. The following items are enclosed for your information and review: ° Agenda- January 14, 1993 BPMC Meeting ° Draft Minutes- November 20, 1992 BPMC Meeting ° Approved Minutes - October 9, 1992 BPMC Meeting Please provide any comments regarding the upcoming January 14, 1993 BPMC meeting agenda items to Chairman Highers. DB:BNP:db ATTACHMENT 1 CHUGACH ELECTRIC ASSOCIATION, INC. Anchorage, Alaska November 18, 1992 TO: Bradley Lake PMC FROM: David W. Burlingame, TCS Secretary SUBJECT: TCS Meeting Summary - November 18,1992 Below is a meeting summary of the TCS meeting held November 18, 1992: svc Status - Construction at both sites has been essentially completed. Checkout is being done prior to start-up. Initial energization of the Daves Creek SVC is scheduled for December 3, 1992 with testing performed through December 28, 1992. Initial energization at Soldotna is scheduled for January 14, 1992. Svc Testing - Utilities need to verify the scope of tests to be performed by December 4, 1992. Utilities need to determine the Mumber of steps required in each test and if all of the initial tests still need to be completed. Bradley Lake Operation - The plant is currently down for scheduled maintenance. Completion of maintenance is tentatively scheduled for November 28, 1992. Repeater frequencies are being changed at the project site due to a conflict between AEA and HEA frequency use. DECNET - installation at the site is essentially completed. Clean- up and checklist items still need to be completed. Svc Simulator test/ PTI Study results - SWEC distributed a report detailing the various studies performed by PTI and their comparison to the ABB test results. Comments are due by December 4, 1992. Bradley Lake Oscillations/ Testing/ Governor - SWEC presented a summary of the tests performed at Bradley Lake on November 16,17, 1992. The tests identified an design oversight in the Bradley governor which sporadically would send a Bradley unit to full power output or no power output depending on the timing of the AGC pulses. This is believed to be the cause for the HEA outage October 16, 1992 and several other system disturbances. The Committee approved a motion to have SWEC, PTI and Woodward investigate a modification of the Bradley governor which will eliminate the Kenai oscillation problems. The following motion was unaminously passed: MOTION - Move to pursue development of governor modifications by PTI/SWEC and Woodward to eliminate the Kenai oscillation following islanding for a cost estimated at $70,000. This change will not prevent the normal oscillations of the Kenai due to changing of the Governor modes. During these mode changes, the generation swings on the Kenai have been measured at 18% of the total Kenai load. SWEC/PTI are going to investigate these swings and their effect on the system since none of the studies to date have predicted or shown them. The committee also agreed to eliminate the reverse power relays at the plant based on SWEC’s recommendation. ATTACHMENT 2 Alaska Energy Authority A Public Corporation November 20, 1992 Mr. Dave Highers Chairman Bradley Lake PMC c/o Chugach Electric Association P. O. Box 196300 Anchorage, Alaska 99519-6300 Subject: O&M Budget Carryover from FY Dear Dave: I am proud to inform you that upon review and close-out of our FY92 Accounts there is a $910,411 surplus in the Bradley Lake budget that is available for credit or carry forward into FY93. When the FY93 budget was adopted in early 1992 the carry forward was expected to be $494,000. Based on care in allocating AEA's direct labor charges between Bradley & O&M and Bradley construction an additional $400,000+ is now available for application toward the FY93 budget or for rebates to the purchasing utilities. If the BPMC wishes to simply carry forward this amount we have prepared a revised cash flow which is attached and which will be presented to the budget subcommittee prior to the November 20, 1992 BPMC meeting. Sincerely, Ronald A. Executive Director ce: Budget Subcommittee Bradley Lake PMC members RAG:rms PO. Box 190869 704 East Tudor Road Anchorage, Alaska 99519-0869 (907) 561-7877 Fax: (907) 561-8584 1,000,460 159,226 991,292 6,700,496 225,457 ° (66,229) 65,706 463 595,000 168 FY Total 19,484,253 2,817,561 11,777,104 2,470,000 10,917,066 19,469,779 16,087,706 1,341,621 45,102 225,374 61,052 ALASKA ENERGY AUTHORITY BRADLEY LAKE UTILITY PAYMENTS BUTILPAY.XLS FY-93 Power purchasers October May (Chugach Electnic Association $351,702 ($331,500 $331,500 (Muaicipality of Anchorage $299,641 $292,429 | $282,429 Alaska Electric Generation & 25.80% $298,484 | $298,484 | $298,484 | $298,484 | $298,484 | $298,484 _ $281,339 16.90% $195,519 $195,519 $195,519 $195,519 $195,519 | $195,519 ‘$184,288 $11,569 $11,569 $11,569 $11,569] $11,569 $10,905 $1,156,915 | $1,156,915 | $1,156,915 $1,090,460 June $551,500 S$282429 S2K114Y S184 288 $10,905 $1,090,400 | HY beaut yao 2b? ds492 A SAINT P2278 098 yitawas Sis asd 250 Page 1 TTACHMENT 3 Alaska Energy Authority November 20, 1992 Mr. Ken Ritchey General Manager Matanuska Electric Association P. O. Box 2929 Palmer, Alaska 99645 Subject: Bradley Lawsuit on Administrative Costs Dear Mr. Ritchey: As a follow-up to my meeting with you, Ron Saxton, and Carolyn Jones in my office on October 16, 1992, I have examined both the FY92 and FY93 Bradley Lake operation and maintenance budgets. I believe the methods used to develop the direct charges and indirect charges (administrative costs) for the FY93 budget, which was presented to the Bradley Lake Project Management Committee on March 26, 1992, are reasonable and in conformance with the provisions and intent of the Bradley Lake Power Sales Agreement. I reminded the committee that ever since I arrived at the AEA in early July 1992, I have attempted to resolve this dispute through negotiation based on business principles. Even after the committee filed the lawsuit on July 16, 1992, I took the initiative and offered settlement positions on August 7. Please remember that I was a negotiator and signatory to the Bradley Lake Power Sales Agreement on behalf of a Purchasing Utility and I never believed the Agreement intended for the State or Authority to subsidize the O&M costs of Bradley Lake as the present counsel for the utilities has argued. In fact I am proud to inform the committee that after recently completed review of the close-out of our FY92 books, there will be a budget surplus of $910,411, that will carryover and be available as a credit to the FY93 budget. This large carryover is due in large part to AEA's care in identifying and allocating the O&M and construction related expenses to the project in FY92. Frankly, I find it offensive that we are litigating a minor issue that should be solved with common sense and that may interfere with our professional relationships and ability to work on projects of mutual benefit. Although I had previously offered to give up "veto" rights over administrative costs in a previous settlement proposal, I fully intend for the Authority to retain such rights over frivolous budget items that the Committee may be persuaded to adopt. Even though this litigation has become “unfriendly”, I remain open to any fair and reasonable settlement proposal. Sincerely, ; Garak Vi n> Ronald A. Garzini Executive Director ce: Bradley Lake PMC Members Carolyn Jones, Assistant Attorney General, - Anchorage, Alaska Ronald Saxton, Ater, Wynne, Hewitt, Dodson and Skerritt, - Portland, Oregon RAG:rms PO. Box 190869 704 East Tudor Road Anchorage, Alaska 99519-0869 (907) 561-7877 Fax: (907) 561-8584 ATTACHMENT 4 BRADLEY LAKE OPERATION AND DISPATCH SUBCOMMITTEE SUMMARY OF MEETING NOVEMBER 6, 1992 CORRESPONDENCE October 16, 1992 Outage Report - CEA October 17, 1992 Deflector Mode Operation - CEA October 24, 1992 Deflector Mode Operation - CEA Project Energy Reallocation - AEA Wholesale Power Losses - HEA Draft Test Procedure for Turbine Deflector Characteristics - SWEC Water Deficit 92-93 - AEA OPERATIONS Lake Level at 1138.8 feet and dropping. Inflows below normal for September at 21% of average and for October at 40% of average. Energy has been reallocated in accordance with procedures. Tests on the Bradley Unit to define the deflector characteristics and explain the response to commands are scheduled for November 11, 1992. (Note, this has been rescheduled to November 16, 1992 to accommodate utility generation schedules.) A complete record of maintenance and tests results will be maintained for reference. The communications network between the dispatcher and field personnel (HEA) has been resolved. CEA will install a radio at Bernice Lake to provide direct communications and Bradley will move to a different frequency. It was determined that AEA will provide a brief monthly executive summary report of Bradley operations. The report will include water use, inflow, generation numbers and related statistics; a brief highlight of major events; and a list of project problems. The Subcommittee will review the report format prior to its implementation. Bradley Lake O&D Subcommittee November 6, 1992 Meeting Summary page 2 ACTION ITEMS Revisions to the Allocation and Scheduling Procedures: The Subcommittee revised Section 5 (b), Hourly Schedules of the Allocation and Scheduling Procedure to include the following statement: Daily schedule changes shall be allowed, subject to procedures implemented by the O&D Subcommittee. The Subcommittee approved recommendation of the revised amendment to the BPMC for adoption. The Subcommittee revised Section 5 (j), Project Scheduling Limitations of the Allocation and Scheduling Procedure to include the following statement: After November 1, each utility may take 100% of its proportionate share of the project (remaining balance as reallocated November 1.) The Subcommittee approved recommendation of the revised amendment to the BPMC for adoption together with Section 5(g), Schedules Above Participants’ Share, Section 5(i), End of Water Year Procedures, and Section 7 (c), Project Spill in the form presented at the October 2, 1992 O&D meeting. All revisions will be presented to the BPMC in a manner which clearly defines the differences between the original procedures and the proposed changes. Note: Further clarification of these action items is required by the O&D Subcommittee prior to presentation to the Bradley PMC. HEA Line Losses: A discussion was held regarding HEA line losses. The discussion will continue at the next O&D meeting with the presentation of additional information by HEA. NEXT MEETING Thursday, December 3, 1992 10:00 a.m. Alaska Energy Authority Main Conference Room BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE APPROVED MEETING MINUTES October 9, 1992 1, CALL TO ORDER Chairman Highers called the Bradley Lake Hydroelectric Project Management Committee to order at 10:15 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 Ron Garzini, Designated Alternate Representative Chugach Electric Association David L. Highers, Designated Representative and Chairman Golden Valley Electric Association Mike Kelly, Designated Representative City of Seward Paul Diener, Designated Representative Homer Electric Association Norm Story, Designated Representative Matanuska Electric Association Ken Ritchey, Designated Representative Municipal Light & Power Tom Stahr, Designated Representative Others Present: Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerritt David Burlingame, Chugach Electric Association Tom Lovas, Chugach Electric Association e:\dburger\word \mimutes \pme\10-92 BPMC Meeting Minutes October 9, 1992 Page 2 of 10 John Cooley, Chugach Electric Association Gene Bjornstad, Chugach Electric Association Bradley Evans, Golden Valley Electric Association Bob Hufman, AEG&T Dave Fair, Homer Electric Association Dave Calvert, City of Seward Tim McConnell, Municipal Light & Power Bob Price, Municipal Light & Power Stanley E. Sieczkowski, Alaska Energy Authority Larry Wolf, Alaska Energy Authority Denise Burger, Alaska Energy Authority Dennis Lewis, Petersburg Municipal Power & Light 3. PUBLIC COMMENT There being no public comment, the meeting continued to the next agenda item. 4. AGENDA COMMENTS Item 12 B, APPROVAL OF UTILITY AGREEMENTS, was removed from the agenda. 5. APPROVAL OF MINUTES - August 24, 1992 Mr. Stahr objected to the inclusion of Attachment 2, Bradley Lake Operations and Dispatch Summary of Meeting on August 18, 1992 for Bradley Project Managers' Committee, as part of the approved permanent record of the August 24, 1992 PMC meeting. Mr. Stahr took exception to the following statement contained in paragraph eight: "After a lengthy discussion of scheduling procedures, it was the consensus of the committee that Bradley was agreed to, by the managers, to be operated as an energy project." Mr. Stahr firmly stated that he was not a part of that consensus and that the utilities had purchased a lot more than energy (i.e. capacity and spin.) Mr. Kelly, offering his comments on behalf of the remaining utility managers, agreed that the language used in the summary was incorrect. Mr. Stahr moved that the Bradley PMC meeting minutes of August 24, 1992 be approved with the exception of the A t 18, 1992 O&D Meeting Summ: (Attachment 2). The motion was seconded by Ron Garzini. Mr. Ritchey ¢:\dburger\word \mimutes \pmc\10-92 BPMC Meeting Minutes October 9, 1992 Page 3 of 10 questioned whether the Bradley PMC had the authority to approve the O&D Subcommittee meeting summary. Mr. Saxton clarified that if the summary was an accurate account of the O&D Subcommittee meeting, then the PMC should not change it, but if the summary was inaccurate, then the O&D Subcommittee, itself, should change it. Mr. Saxton stated that the Bradley PMC had the right to disagree with the summary. Responding to Mr. Saxton's comments, Mr. Sieczkowski confirmed that the relationship of energy and capacity was discussed at the O&D Subcommittee meeting and that the summary reflected the discussion. With the understanding that the BPMC record will reflect the managers' di val of th mimi ment, the Au. 24, 1992 BPMC meeting minutes were approved by acclamation. 6. TECHNICAL COORDINATION SUBCOMMITTEE REPORT Dave Burlingame distributed a report (synopsis) of the TCS meeting held October 8, 1992 (Attachment 1). Mr. Burlingame informed the PMC that the DECnet had been installed but had not yet been put into operation. Mr. Burlingame noted that the SVC work was on schedule (the transformer, reactors, and buswork had been installed.) The contractor has tentatively requested an outage of the 115 kV transmission system October 16, 1992 to hook up the SVC. It was reported that the reservoir water elevation was significantly lower than projected for this time. Mr. Burlingame explained that AEA had uncovered a potential error in the lake level survey which, if verified, contributed to the lower than anticipated lake level. It was noted that AEA would be issuing a revised allocation schedule. Because of the discrepancies between the results of the actual SVC simulator tests and the Power Technology Incorporated (PTI) prediction, Mr. Burlingame stated that Stone & Webster Engineering Corporation (SWEC) had been requested to analyze both the ABB simulator test data and PTI studies. It was noted that the TCS utility representatives objected to the conclusions of SWEC's analysis due to the fact that SWEC used outdated PTI data. SWEC will continue to investigate the problem. ¢:\dburger\word\mimutes \pme\10-92 BPMC Meeting Minutes October 9, 1992 Page 4 of 10 Mr. Burlingame reported that the TCS had developed possible short term and long term solutions to the unstable Kenai oscillation problem.! The TCS approved the implementation of two procedures to resolve the problem when the Kenai was exporting more than 10 megawatts of power: (1) to automatically place the unit into deflector mode via SCADA and, (2) to disable the gain acceleration function within the governor. Mr. Burlingame noted that the second procedure would slow the needle response time (allowing more time for system response) resulting in the waste of some water. Mr. Burlingame reported that no short term solution to the unstable oscillation problem had been identified for when the Kenai was importing power, or exporting less then 10 megawatts of power. SWEC is investigating possible short term solution options using the Bradley governor and is concurrently investigating long term solutions. It was noted that when the Kenai is importing more than 5 megawatts of power and is islanded, the unstable oscillation will cause the Kenai to go through all three stages of load shed (effectively resulting in only one stage of load shed.) 7. BUDGET SUBCOMMITTEE REPORT Mr. Ritchey reported that there had been no official Budget Subcommittee meetings. However, the RFP for the construction cost audit was nearly ready to issue and the proposals were expected by the first of November 1992. Mr. Ritchey noted that the subcommittee would be reviewing a proposal for the audit of yearly operating expenses. Mr. Saxton stated that the PMC had authorized the expenditure of funds for the construction cost audit, but not the yearly operating cost audit. Mr. Ritchey clarified that funds for the yearly operating cost audit had already been approved as part of the fiscal year budget and that no additional approval was needed. Mr. Saxton recommended that the PMC address the upcoming fiscal year budget at the next meeting. 8. AGREEMENT SUBCOMMITTEE REPORT Mr. Sieczkowski distributed the Agreement List and Assignment Schedule, Updated October 8, 1992 (Attachment 2). Mr. Sieczkowski reported that HEA and AEA met October 2, 1992 and discussed the Soldotna Substation Agreement and Transmission Facilities Maintenance Agreement. New drafts of the agreements developed at that meeting were currently being reviewed by HEA, CEA, ABA, and the Agreement Subcommittee members. The ! Unstable oscillations are those oscillations which grow in magnitude once started and do no subside until either corrective action has been taken or the system has suffered considerable loss of load and/or generation to obtain stability. ¢:\dburger\word \mimutes \pme\ 10-92 BPMC Meeting Minutes October 9, 1992 Page 5 of 10 Agreement Subcommittee was expected to meet later this month to review the draft agreements. The SVC Maintenance Agreement was currently being reviewed by the Energy Authority's attorney. In response to inquiry by Mr. Lovas, Mr. Sieczkowski noted that AEA was presently awaiting receipt of a revised draft of the Transmission Interconnect Agreement from HEA. 9. OPERATION AND DISPATCH SUBCOMMITTEE REPORT A summary of the October 2, 1992 O&D Subcommittee meeting was distributed (Attachment 3). Mr. Sieczkowski highlighted the following topics: Request for installation of kW metering on the station service system for better accounting of energy flows. Annual maintenance of both units scheduled for November 9 - 19, 1992 Modification of the fish water bypass release software program to improve system response time (in order to avoid violation of FERC minimum flow requirements.) Exhibit B, Allocation and Scheduling Procedures acted upon by the O&D Subcommittee will be presented under "NEW BUSINESS." Amendment to Allocation and Scheduling Procedures acted upon by the O&D Subcommittee will be presented under "NEW BUSINESS." Notification by CEA of a formal agreement between CEA and HEA for the purchase of scheduling rights (originally misstated as capacity and allocation at the October 2, 1992 O&D Subcommittee meeting.) In response to the CEA / HEA agreement, Mr. Sieczkowski stated the O&D Subcommittee requested clarification of whether HEA still had voting rights on the Subcommittee since HEA was no longer a scheduling utility. Chairman Highers pointed out that the Power Sales Agreement included all Bradley Lake participants (as opposed to scheduling utilities.) Mr. Saxton stated that the contract did not specify anything about the subcommittees, giving the PMC the authority to make those rules. Mr. Stahr stated that the utilities had purchased capacity and energy, not water allocation, further explaining that water allocation was an operational procedure. Mr. Story took exception to the language in the last paragraph on page 1 of the October 2, 1992 O&D meeting summary where it stated that CEA had purchased HEA capacity and water e:\dburger\word \minutes \pmo\ 10-92. BPMC Meeting Minutes October 9, 1992 Page 6 of 10 allocation. Mr. Story explained that, rather, CEA had purchased HEA scheduling rights. Mr. Stahr expressed concern over potential impact (if any) of the CEA / HEA agreement on the rights of the other purchasing utilities. Mr. Stahr suggested that the Bradley PMC assure the prevention of any infringement on another utility's rights or provide a mechanism for review of such agreements by all of the participating utilities. Mr. Kelly brought attention to the responsibility for spinning reserve, noting that CEA had originally taken the position that HEA was required to provide spinning reserve. Mr. Kelly raised the question of a utility's responsibility to carry spinning reserve if the utility assigned its scheduling right. Mr. Fair noted that the spinning reserve issue to which Mr. Kelly referred was a temporary Intertie Operating Committee (IOC) arrangement that would dissolve on January 1, 1993. Mr. Fair informed the PMC that HEA was preparing a letter explaining the HEA agreement with CEA. Mr. Fair explained that the agreement was a scheduling agreement and did not impact the "rights, obligation, cost, payment, etc. in relation to AEG&T's share of Bradley Lake associated HEA participation." Mr. Fair reiterated that HEA had only sold its right to schedule, noting HEA purposely avoided a power sale, kilowatt hour sale, or kilowatt sale. Mr. Kelly again questioned HEA's spinning reserve requirement stating that the issue of spinning reserve was "hooked" to the issue of scheduling and participant voting rights. Mr. Fair stated that HEA's spinning reserve requirement was taken care of by the agreement with CEA.? Mr. Fair further stated that HEA had no intent to modify its participation in the Bradley Lake Project. Mr. Kelly stated that if HEA was no longer obligated to spin, it would have an impact on the other participants. Mr. Lovas clarified that CEA's agreement with HEA pooled the resources of both utilities similar to its agreements with SES and MEA. Mr. Burlingame re-focused the discussion on the question raised at the October 2, 1992 O&D Subcommittee meeting regarding Bradley Lake participant voting rights. Mr. Burlingame phrased the following question: "Does CEA have the right to schedule 57% of the project, or does CEA 2 Mr. Stahr later stated that, by his interpretation of the Alaska Intertie Agreement, only utility participants had spinning reserve obligations (i.e. Eklutna and AEA have no spin obligations.) Mr. Lovas also confirmed this interpretation, stating that the generating utility (representing a pool of resources) was responsible for the spin obligation (i.e. CEA picked up the spin requirement for HEA.) e:\dburger\word \minutes \pme\ 10-92 BPMC Meeting Minutes October 9, 1992 Page 7 of 10 schedule 31% + 12% + 13% + 1% of the project?" Mr. McConnell noted that it depended on which way CEA dispatched, explaining that if all the water of all the participants was depleted in proportion to their project share, there was no difference. If CEA however used all of one utility's share but still claimed 57% (for apportioning spin), there would be a "dramatic difference." Mr. Burlingame stated that the Allocation and Scheduling Procedure does not state that CEA must draw all shares down equally and pointed out that there were no operating restraints defined in the Allocation and Scheduling Procedure. Mr. Burlingame stated each utility would incur spinning reserve obligation if the participant shares were treated in an additive manner (i.e. 31%, 12%, 13% and 1%.) Mr. Kelly expressed concern over the possibility that utilities could avoid the spinning reserve requirement. Mr. Lovas noted that the combined spinning reserve obligation was not reduced, and that it was an allocation problem as opposed to an electrical problem. It was the general consensus of the PMC that a determination of the effect of the CEA / HEA agreement could not be made without further review of the actual contract or a contract summary. Mr. Lovas informed the Committee that the scheduling agreement would become public information within the next few days when it was filed as part of (APUC) Docket U 92-25. Mr. Stahr moved that no change be ma he voting righ membership in the PMC subcommittees, and that the "status quo" be maintained. The motion passed by a unanim LI vi Mr. Kelly asked Mr. Saxton to research answers to the following questions: ie Does Bradley require spin? 2: Do the arrangements between SES and MEA and CEA effect their spin requirement? ay Does the new HEA / CEA arrangement effect their spin requirement? Mr. Fair pointed out that there is no spinning reserve obligation imposed by any of the Bradley Lake agreements, stating that it was an IOC issue. Mr. Burlingame clarified that, for now, CEA was carrying the extra spin. Mr. Burlingame, referring to the motion, asked if the "status quo" meant that CEA then operated 57% of the project. Mr. Burlingame explained that CEA e:\dburger\word \mimutes \pme\ 10-92 BPMC Meeting Minutes October 9, 1992 Page 8 of 10 11. would provide some water allocation to each participant that CEA scheduled for and would carry each participants spin obligation. Mr. Burlingame added that the water share of participants CEA scheduled for would not be depleted in proportion to their project share. Mr. McConnell noted that if the water was depleted at rates determined by CEA, entitlement to capacity and entitlement to spin changes dramatically. Mr. Burlingame disagreed, stating that CEA had never operated according to proportion of share. Mr. Stahr recommended that spin obligation and the selling of spin also be researched. Chairman Highers, citing the need to have several questions answered, asked Mr. Saxton to provide this information to the PMC. To ensure a response to all issues, Mr. Saxton responded with a plan to first put together a list of the questions that had been raised for review by the managers. AS BRADLEY SCHEDULING VS. SPIN REQUIREMENT This item was included in the discussion of Item 9, OPERATION AND DISPATCH SUBCOMMITTEE REPORT. REVIEW OF PROJECT STATUS In the absence of Dave Eberle, Mr. Wolf noted that information regarding project status was presented in the TCS report to the Committee (Item 6). OLD BUSINESS A. SPINNING RESERVES/UNDER FREQUENCY LOAD SHEDDING - UPDATE Mr. Lovas reported that the ASCC had met the day before and was continuing to make progress in its discussions of spinning reserve and load shed. The ASCC discussed the use of utility staff to perform technical studies and concluded that it was more timely and cost effective than using consultants. Mr. Lovas informed the PMC that the Intertie Subcommittee was close to finalizing a load shedding schedule proposal and that the ASCC had approved a $159,000 budget for the Reliability Criteria Subcommittee's work. e:\dburger\word \mimutes \pme\10-92 BPMC Meeting Minutes October 9, 1992 Page 9 of 10 13. NEW BUSINESS A. APPROVAL OF COMMITTEE EXPENSES Noting that documentation of the current expenses had been submitted to Brent Petrie, Mr. Saxton stated that future Committee expenses should be forward to Ken Ritchey (Chairman of the Budget Subcommittee). Mr. Saxton presented the following expenses to the PMC for approval: Homer Electric: $228.84 for TCS work $544.87 for PMC related activities Ater Wynne: $23,760 for July, August, and September legal expenses Mr. Saxton noted that the remainder of Section 31 funds would be depleted and a portion of these expenses would come directly from the Committee budget. Mike Kelly moved to approve the submitted expenses. The motion, seconded by Norm Story, was approved by unanimous roll call vote. APPROVAL OF UTILITY AGREEMENTS Deleted from the agenda. APPROVAL OF AMENDED ALLOCATION AND SCHEDULING PROCEDURES Mr. Sieczkowski distributed a revision to Section 5 of the Allocation and Scheduling Procedure (Attachment 4) and recommended action by the PMC. Additionally, Mr. Sieczkowski distributed a copy of the Exhibit B language to the Allocation and Scheduling Procedure (Attachment 5) and recommended that the PMC review it for consideration at the next meeting. Mr. Kelly moved that the Section 5 revision be approved. Ken Ritchey seconded the motion.? Mr. Stahr asked if the proposed amendment would result in increased lead time on the scheduling. In response to Mr. Sieczkowski's answer that it would, Mr. Stahr expressed his opposition, stating that there was too much lead time now. 3 No action was taken on this motion. ¢:\dburger\word \mimutes \pmo\10-92 BPMC Meeting Minutes October 9, 1992 Page 10 of 10 Mr. Burlingame disagreed and pointed out daily changes could still be made to the schedule. Mr. Kelly motioned, seconded by Mr. Stahr to table the previous motion until the next PMC meeting and allow CEA to implement the revised procedure in the manner described until then. The motion was approved by a unanimous roll call vote. HISTORICAL REVIEW OF PMC ACTIONS Mr. Saxton noted that a list of PMC actions delegating assignments to various subcommittees had been prepared and previously distributed to the utility managers (Attachment 6). It was noted that the subcommittees had not been given any authority to act independently of the PMC. 14. COMMUNICATIONS Mr. Kelly informed the PMC that Mr. Brad Evans had been appointed GVEA's alternate representative to the PMC. A. SCHEDULE NEXT MEETING Friday, November 20, 1992 10:00 a.m. CEA Training Room 15. ADJOURNMENT There being no further business before the committee, the meeting adjourned at 11:45 .-m. ut hes ttest: ie Ronald A. Garzini, Designated Alternate Representative e:\dburger\word \minutes \pme\ 10-92 ATTACHMENT 1 CHUGACH ELECTRIC ASSOCIATION, INC. Anchorage, Alaska October 8, 1992 TO: Bradley Lake PMC FROM: David W. Burlingame, TCS Secretary SUBJECT: TCS Meeting Report The following is a synopsis of the TCS meeting held on October 8, 1992. SCADA SubCommittee has reviewed the DECNET installation at Bradley Lake. SWEC is waiting for the final points list to be received from Golden Valley and AML&P prior to implementing. SWEC has requested Landys & Gyr investigate alternative methods of supplying HEA with requested information other than the present design. Svc Project Status - The transformers at both sites are installed, reactors installed, switches and buswork installed and the valves are on-site. The Daves Creek SVC is tentatively scheduled to be connected to the power system October 16, 1992. The SVC is not scheduled to begin any testing until November. Bradley Lake Water Elevation - The water elevation is down significantly and project allocations are expected to be adjusted downward. SWEC/AEA found an error in the field survey which resulted in the water elevation at the dam being reported 2' lower than it actually is. svc Simulator Studies - SWEC presented an analysis of the analog and digital simulator studies ABB performed at AEA's request. The studies were performed due to the apparent discrepancy between the stability numbers found by ABB in their initial tests and the PTI numbers we are operating under. The utilities objected to the SWEC conclusion as SWEC was using numbers from a superseded PTI study and the not the numbers currently in use. SWEC will investigate further. SWEC was requested to run an additional case to ascertain the stability limit after the Svc's are installed as this now appears to be in question. Kenai Oscillations - SWEC presented its findings an the cause of the Kenai oscillations and the recommended short term solutions. The committee accepted two of the recommendations with motions as follows: Motion 1 - Move to put one Bradley Lake unit in deflector automatically as soon as possible via Chugach's SCADA control upon detection of islanding to prevent or mitigate Kenai frequency oscillations. The above action has previously been implemented by Chugach and according to the SWEC studies, should prevent oscillation during those times when the Kenai is exporting more than 10 MW of power. Motion 2 - Move to disable the gain acceleration function within the Bradley governor to allow more time before the needle valve and deflectors equalize and begin the Kenai system frequency oscillations. The above action will be implemented by SWEC as soon as possible. The only detriment to the above is a small amount of water that is wasted on overfrequency conditions since it slows down the time it takes for the needles to close and match the deflectors, ie the units are running on their deflectors for a slightly longer period of time. The committee has not been able to identify any short term solutions which mitigate the Kenai loadshedding during import conditions. SWEC estimates that any import more than 5 MW will result in total Kenai loadshedding. SWEC was asked to investigate the possibility of automatically tripping a unit to deflector control on overfrequency as opposed to waiting for SCADA control. This may help the Kenai avoid further loadshedding during import conditions. SWEC recommended disabling AGC control for Bradley Lake during transient period immediately after islanding. Chugach will investigate and implement if possible. SWEC will investigate the possible long term solutions including the installation of a new governor control mode at Bradley Lake, new intertie, batteries, surge tanks etc. ATTACHMENT 2 BRADLEY LAKE AGREEMENTS SUBCOMMITTEE AGREEMENT LIST AND ASSIGNMENT SCHEDULE UPDATED: October 8, 1992 COMPLETION Organiz- AGREEMENTS DRAFT DATE DATE RESPONSIBILITY ation Dispatch Agreement 36-91 2-19-92 Tom Lovas CEA between AEA and CEA 6-19-91 S. Sieczkowski AEA 9-4-91 Maintenance S. Sieczkowski AEA Agreement between Sam Mathews HEA AEA and Maintenance Contractor Transmission Facilities 04/05/89 Sam Mathews HEA Maintenance 08/06/89 S. Sieczkowski AEA Agreement between 09/13/91 AEA and HEA 11/08/91 03/03/92 05/15/92 08/21/92 10/05/92 Allocation and 09/15/89 7/2/91 S. Sieczkowski AEA Scheduling Procedures 10/90 O&D Members Utilities Exhibit A 12/91 3/92 Exhibit B 10/92 12/91 Exhibit C 11/91 12/91 Exhibit D 11/91 Deleted Transmission 06/21/91 Sam Mathews HEA Interconnect 11/08/91 Stan Sieczkowski AEA Agreement between 03/02/92 AEA and HEA 05/18/92 Communications 9/92 Afzal Khan AEA Equipment MOU between AEA and Div of Infor Soldotna #1 Dispatch Done * Sam Mathews HEA Agreement between CEA and HEA Transmission 3/7/89 Sam Mathews HEA Capability Agreement between HEA and CEA, ML&P, AEG&T, GVEA a Dar ¢ avaibble bradagre/ds9/91 10. MI: 12 13; 14. IS; AGREEMENTS Power Sales Agreement between AEA, & CEA, GVEA, ML&P, AEG&T, HEA, City of Seward Wheeling of Electric Power (Services Agreement) between CEA & HEA, GVEA, MEA ML&P, AEG&T, Seward Static Var Compensator Systems at Daves Creek and Soldotna Maintenance Agreement between AEA and CEA Daves Creek Substation Soldotna Substation Right of Entry Agreement between AEA and HEA Power Revenue Bond Resolution DRAFT DATE 1/92 2/92 8/91 11/8/91 3/2/92 8/91 11/08/91 03/02/92 03/27/92 05/18/92 08/06/92 08/21/92 10/02/92 COMPLETION DATE 12/8/87 12/8/87 3/92 9/7/89 RESPONSIBILITY Afzal Khan D. Burlingame S.Sieczkowski D. Burlingame S. Sieczkowski Sam Mathews D. Burlingame ORGANI ZATION AEA CEA AEA CEA AEA HEA CEA AEA ATTACHMENT 3 BRADLEY LAKE HYDROELECTRIC PROJECT OPERATION AND DISPATCH SUBCOMMITTEE OCTOBER 2, 1992 MEETING SUMMARY B Y PR T TI N The Chugach Electric Association (CEA) dispatcher was requested to provide the generation schedule to the plant maintenance personnel. This will assist in maintenance scheduling to reduce conflicts and enable maintenance to be coordinated with dispatchers. Additional KWH metering on the station service system is desired for Bradley energy accountability. The weather station communications are still being put into service because new crystals were required. Deflector mode operating tests are scheduled for November 7 and 8, 1992. This is part of the investigation to determine why the oscillation occurred after islanding on the Kenai. Annual maintenance of the project units is scheduled for November 9-19, 1992. The fish releases require close monitoring. A software revision is necessary to prevent dropping below minimum required flows, Because of the four hour time lag from release at the dam and the recording of the flow at the lower Bradley River Gaging Station. Alaska Energy Authority (AEA) utilities and Division of Information Services (DIS) are working to complete installation of project communications. There is still a gap in direct communications from the dispatcher's with personnel in the field. This needs to be resolved so the switchmen can be contacted directly by the dispatchers. Homer Electric Association (HEA), CEA, AEA and DIS are oon to correct this problem. COMMITTEE DISCUSSION AND ACTIONS The committee took action to recommend "Approval of the Allocation and Scheduling Procedures, Exhibit B Language, Presented in the CEA September 12, 1992 Memo as Modified." (Copy attached) The "Storing Water Criteria" proposal was presented and discussed. A discrepancy arose when the generation projections were presented. There was a substantial acre-foot storage accounting error in addition to a two foot transducer level indication error detected this past week. This discrepancy will be resolved and the projections updated for the dispatchers. The committee is to review the Storing Water Criteria proposal and discuss at the next meeting. Operating the Bradley Lake units in condenser mode was discussed. The consensus of the committee was to continue operating the system without running the unit in condenser mode unless requested by a utility. The project will continue to be operated according to established a oa approved criteria. CEA and HEA have formalized an agreement for CEA to purchase HEA capacity and water allocation. Discussion followed and it was noted that clarification was needed from the Bradley Project Management Committee (BPMC) regarding HEA's spinning reserve obligation. 92Q4\NK3718(1) Page | of 2 Summary of October 2, 1992 Operation & Dispatch Subcommittee Meeting October 8, 1992 Another issue arose when this was discussed. "Since CEA has HEA's capacity and water allocation, and is therefore no longer a scheduling utility, does HEA have the right to vote on issues within the Operation and Dispatch subcommittee." This issue needs clarification from BPMC. SS:nk Attachment as Stated. 92Q4\NK3718(2) Page 2 of 2 DATE: TO: FROM: SUBJECT: ATTACHMENT 4 Alaska Energy Authority MEMORANDUM October 8, 1992 Bradley Lake Hydroelectric Project Project Management Committee Stanley E. Sieczkowski iLia Director Facilities Operation and Engineering Alaska Energy Authority Revised Allocation and Scheduling Procedure The following revision to the Bradley Lake Allocation and Scheduling Procedure was approved for recommendation to the Bradley PMC at the August 18, 1992 Operations and Dispatch Subcommittee meeting: "In the interim, Section 5, Project Scheduling, (b), Hourly Schedules of the Allocation and Scheduling Procedures, revised November 19, 1991 shall be changed to: The utilities' weekly schedule shall be submitted to the dispatcher no later than 1400 hours on Tuesday; a preliminary summary of schedule requests shall be distributed to all utilities no later than 1400 hours on Wednesday for review; the schedule shall be confirmed by the dispatcher no later than 1400 hours on Thursday; and implemented at 0001 hours on Saturday. (The energy week is established to be Saturday to Friday.)" The motion passed by unanimous roll call vote. DB:SES:db ce: Ronald A. Garzini, Alaska Energy Authority Brent N. Petrie, Alaska Energy Authority DATE: TO: FROM: SUBJECT: Alaska Energy Authority MEMORANDUM October 8, 1992 Bradley Lake Hydroelectric Project Project Management Committee Stanley E. Sieczkowski Soa Director Facilities Operation and Engineering Alaska Energy Authority Exhibit B - Allocation and Scheduling Procedure Exhibit B of the Bradley Lake Allocation and Scheduling Procedure was approved for recommendation to the Bradley PMC at the October 2, 1992 Operations and Dispatch Subcommittee meeting. Attached is a copy of the approved Exhibit B for your consideration. DB:SES:db ce: Ronald A. Garzini, Alaska Energy Authority Brent N. Petrie, Alaska Energy Authority ATTACHMENT 5 10/06/92 16:55 9077624510 CEA DISPATCH CTR @oo2 Exhibit B The following sections are intended to replace the existing schedule B in the Allocations and Scheduling Procedures Turbine Operation The following schedule shall be used to determine the operation of the Bradley Lake generators, assuming both units are available for operation: Plant Schedule (MW) Speed Mode Condense Mode Notes Schedule< 10 MW no units none, one or both units #1 10 MW<schedule <20 MW one unit one unit #2 20 MW <schedule < 30 one unit one unit/no unit #3 Schedule > 30 MW both units no units Notes #1 - If any participant could utilize the spinning reserve from a unit or a second unit in the condense mode, one or both units will be operated in condense. If no utility requests the additional spinning reserve, only one unit will be operated in condense if required for voltage control unless a unit is changed to condense to avoid a shutdown. Notes #2 - depending on spin requirements, either one unit will be operated alone in the speed mode or both units will be operated, one in speed and one in the condense mode. A utility can request the unit be operated in the condense mode as opposed to altering its schedule if in conflict with the minimum 4 hour down time. Note #3 - any scheduling utility can require both units to he Placed on-line between 20 and 30 MW if desired by that utility, although it would be possible to operate one unit in speed and one unit in condense mode at these levels to obtain the entire spinning reserve allocation for the plant, the more efficient operation would be for both units to be operated above 10 MW each in speed mode. 10/0682 16:55 9077624540 CEA DISPATCH CTR @oo3 Minimum Unit Shut Down Each unit scheduled for shutdown shall be shut down for a ninimun of 4 hours. Operation of a unit in the condense mode will not constitute a shut down and does not have a 4 hour minimum time associated with it. The following criteria shall generally govern the operation of the plant during islanded and non-islanded conditions: Islanded Operation Unscheduled Islanding If the Kenai is operating with only Bradley Lake or Bradley Lake and Cooper Lake prior to islanding, one Bradley Lake unit will automatically be placed in deflector by the Chugach scada system upon detection of islanding. The unit will remain in deflector until a Kenai area gas turbine has been synchronized with the islanded Kenai system. After a gas turbine has been synchronized with the Kenai system the unit will be changed to the speed mode from the deflector mode. During load restoration on the Kenai, one unit may be placed in deflector control to aid the gas turbine in load pickup and frequency restoration. The unit will be returned to speed mode after restoration has been completed. Scheduled Islanding Prior to scheduled islanding a Kenai area gas fired generator will be synchronized with the Kenai system. Bradley generation will remain in the speed mode. Islanded Operation - Steady State While running islanded, a gas-fired generator shall be operated in conjunction with Bradley Lake. The Bradley Lake units shall he operated in the speed mode. If an on-line gas-fired turbine suffers a forced outage and it is the only gas-fired unit on-line in the islanded system , one Bradley Lake unit shall be placed in deflector mode and operated in deflector until a gas-fired generator is placed on-line in the islanded area. 10/06/92 16:58 9077624540 CEA DISPATCH CTR Qoo4 Interconnected Operation - Steady State While Bradley Lake is interconnected to the Anchorage system, its normal mode of operation shall be the speed mode for both units. During times of system load restoration, one Bradley Lake unit may be placed in the deflector mode if the amount of load to be restored will not exceed the export or operating limits of the Kenai systen. ATER WYNNE HEWITT DODSON & SKERRITT ATTORNEYS AT LAW MEMORANDUM TO: Bradley PMC Representatives FROM: Ron Saxton DATE: October 6, 1992 3 Duties Assigned to Subcommittees ATTACHMENT 6 Suite 1800 222 SW. Columbia Portland, Oregon 97201-6618 (503) 226-1191 Fax (503) 226-0079 In response to a request at our last BPMC meeting to outline the assignments delegated to the various subcommittees, I had my legal assistant (Liz Westby) review the BPMC meeting minutes from 1989 to present and prepare the attached list of tasks. Note that some of the tasks have been completed, but are included on the list for your reference. Distribution: BPMC Utility Managers Paul Diener, City of Seward Ken Ritchey, MEA Dave Highers, CEA Norm Story, HEA Mike Kelly, GVEA Tom Stahr, ML&P AA ce, | >ReV 7 Sea Seattle, Washington Washington, D.C. San Francisco, California (206) 623-4711 (202) 785-0303 (415) 421-4143 Fax (206) 467-8406 Fax (202) 785-8676 Fax (415) 989-1263 Affiliated offices in Anchorage, Fairbanks and Juneau, Alaska TO: Ron Saxton FROM: Liz Westby DATE: October 6, 1992 RE: Duties Assigned to the Bradley Lake PMC Subcommittees The following are tasks assigned to the Bradley Lake PMC Subcommittees (as referenced in the meeting minutes). AGREEMENTS SUBCOMMITTEE. Tasks: a Look at other agreements for consolidation and coverage. (Minutes 7/2/91, p. 4) e Review Dispatch Agreement. (Minutes 11/19/91, p. 3) 3 Update Allocation and Scheduling Agreement Exhibits C and D. (Minutes 1/13/92, p. 3) e Work on Maintenance and Right of Way Agreements with Homer. (Minutes 1/13/92, p. 3) 4 Review and follow-up on: - Allocation and Scheduling Agreement Exhibit A - Dispatch Agreement ~ Transmission Facility Maintenance - Facilities Interconnected Dispatch = Communications MOU - SVCS Draft Agreement - Daves Creek Substation - Soldotna Substation (Minutes 3/26/92, p. 4) BUDGET (AND FINANCE) SUBCOMMITTEE Tasks: Develop draft definitions of Project (construction) costs versus utility costs. (Minutes 7/28/89, p. 4) Establish uniform accounting procedures for utility cost reimbursement. (Minutes 7/28/89, p. 4) Review issues: - cash flow timing: - budget revisions subsequent to budget adoption; - reserve accounting; = AEA staffing and overhead costs; - transmission costs; - environmental studies costs; - Intertie budget component. (Minutes 2/27/90, p. 3-4) Review issues: - HEA Transmission Line Maintenance; - AEA Costs; - CEA Software; - Dispatching labor costs. (Minutes 5/17/90, p. 4-5) Review of CEA and HEA Wheeling Agreement costs, and insurance. (Minutes 5/17/90, p. 6) Address the sinking fund payment that SWEC came up with for the scheduled maintenance and replacement of equipment. (Minutes 7/17/90, p. 8) Look at Homer Electric O&M expenses for the transmission line. (Minutes 7/2/91, p. 3) Analysis and discussion of (1) payments to the trustee to eliminate the cashflow problem, and (2) timing of payments. (Minutes 7/2/91, p.4) Prepare FY93 budget. (Minutes 11/19/91, p. 2) Resolve wheeling issue with HEA. (Minutes 1/13/92, p. 2) INSURANCE SUBCOMMITTEE Tasks: Review need for formal risk assessment of Bradley Lake Project required by insurers in order to develop quotes for property insurance. (Minutes 5/4/89, p. 3) Inventory types of insurance required, such as business interruption Insurance. (Minutes 6/8/89, p. 5) Review of possibility of pooled insurance coverage with the Alaska Intertie and/or Four Dam Pool. (Minutes 10/19/89, p. 5) Prepare insurance alternatives for the budget. (Minutes 11/30/89, p. 3) Consideration of errors and omissions insurance for SWEC. (Minutes 11/30/89, p. 3) Review Stone & Webster Risk Management Report. (Minutes 4/6/90, p. 3) Review property insurance premium quotes from the Division of Risk Management. (Minutes 11/28/90, p. 2) Look (to Corroon & Black) for a provider interested in providing boiler and machinery as well as business interruption insurance. (Minutes 6/6/91, p. 5) Look at coverage of debt service payment and operation and maintenance debt service for at least one year. (Minutes 6/6/91, p. 5-6) Request quotes on insurance premiums. (Minutes 10/25/91, p. 3) Review shop and crew facilities insurance coverage. (Minutes 4/28/92, p. 2) Review options and present recommendations for the level and types of insurance, including an option of not renewing the insurance (self-insurance), extra insurance, and not Increasing the contingency fund. (Minutes 4/28/92, p. 3) OPERATING AND DISPATCH AGREEMENT SUBCOMMITTEE Engage services of a consultant to assist with drafting language for the Allocation and Scheduling Agreement. (Minutes 5/4/89, p. 6) Draft Bradley Lake Allocation and Scheduling Agreement. (Minutes 10/19/89, p. 5) Develop agreements and distribute to members. Agreements include: - Dispatch Agreement between AEA and CEA - Maintenance Agreement between AEA and Maintenance Contractor - Transmission Facilities Maintenance Agreement between AEA and HEA - Participants Allocation & Scheduling Agreement - Substation Maintenance Agreement between AEA and HEA - Joint Operations Agreement between CEA and HEA - Communications Equipment Agreement between AEA and Division of Telecommunications - Soldotna #1 Dispatch Agreement between CEA and AEG&T (Minutes 7/28/89, p. 4) Select a representative to review and provide comments on the Four Dam Pool draft technical standards. (Minutes 7/28/89, p. 6) Review of presentations on project hydrology, turbine efficiencies and reservoir model for forecasting reservoir inflow and utility demands. (Minutes 1/18/90, p. 5) Review of draft Dispatch Agreement. Work on 2 Issues: (1) spinning reserve, and (2) losses on the Homer transmission system. (Minutes 2/27/90, p. 4) Review results of SWEC model on spill allocation. (Minutes 4/6/90, p. 5) Discuss the Allocation and Scheduling Draft Agreement, the operation of the transmission line after Homer Electric has completed their construction. (Minutes 3/5/91, p. 5) Determine the allocation method to be used for Bradley Lake power prior to commercial operation. (Minutes 3/5/91, p. 6) =4= Develop a method for tracking and accounting for costs associated with dispatching during generation tests from Bradley Lake. (Minutes 6/6/91, p. 2) Discuss load restoration procedures, loss and billing procedures. (Minutes 6/6/91, p. 4) Develop procedures to allow the Bradley participants to readily note or record Chugach's service needs for Kenai area combustion turbine versus those conditions of providing combustion turbine to support the operation of Bradley Lake. (Minutes 7/2/91, p. 3) Review comments on Dispatch Agreement and reservoir model. (Minutes 11/19/91, p. 3) Meet and discuss maintenance and outage schedule with dispatchers. (Minutes 11/19/91, p. 3) Continue work on Allocation and Scheduling Agreement, Dispatch Agreement, Transmission Maintenance Agreement, Facilities Interconnected Agreement. (Minutes 2/28/92, p. 3) Participate in National Weather Service demonstration (to aid in allocation). (Minutes 2/28/92, p. 4) Review of SCADA communications problem. (Minutes 3/26/92, p. 5) Review and make recommendations on Bradley Lake project start-up charges. (Minutes 3/26/92 p. 7) Discussion of common ring-down circuit and communications problems. (Minutes 6/16/92, p. 5) TECHNICAL COORDINATING SUBCOMMITTEE Develop draft operation and maintenance definitions and responsibilities. (Minutes 8/29/88, p. 4) Appoint a member to serve on the Power Authority Configuration Control Board. (Minutes 9/27/88, p. 2) ag Meet with SEI regarding their assessment of reliability of the Bradley Junction to Fritz Creek transmission line. (Minutes 1/20/89, p. 2) PTI presentation on Phase II Stability and Reliability. (Minutes 3/3/89, p. 2) Review bids for SCADA system. (Minutes 3/3/89, p. 2) Make presentation to PMC regarding proposed PTI 115 kv additions. (Minutes 4/6/89, p. 2) Review scope of work for system stability studies prepared by SWEC and proposal from PTI to complete additional stability work. (Minutes 6/8/89, p. 3) Review of software program DECNET. (Minutes 6/8/89, p. 3) Continue review of stability issues (Woodward governor). (Minutes 7/28/89, p. 2) Work on surge tank analysis. (Minutes 7/28/89, p. 3) Review and presentation of Load Acceptance Analysis report prepared by SWEC. (Minutes 1/18/90, p. 2) Prepare testing procedures prior to commercial operation. (Minutes 1/18/90, p. 3) Study of microwave link between Divcom and CEA main headquarters. (Minutes 1/18/90, p. 8) Provide an opinion on test period power agreement, interim operational period. (Minutes 7/17/90, p. 7) Approve SCADA point list. (Minutes 9/21/90, p. 2) Review, approve SWEC's recommendation on the installation of the braking resistor, installation of digital stabilizers on the units, Installation of one SVS at the Daves Creek side and in Soldotna. (Minutes, 11/28/90, p. 2) Review how the project should be operated under different scenarios and define certain operation constraints. (Minutes 11/28/90, p.2 ) =6= Review overfrequency tripping for Cooper Lake to try and control the frequency during times of high Kenai energy export. (Minutes 3/5/91, p. 2) Determine the maximum Kenai import (i.e. minimum Bradley Lake operating limit without a gas turbine on-line, assuming that any single contingency event will not result in more than a reasonable loss of load (and define "reasonable."). (Minutes 3/5/91, p. 3) Review of PTI study of operating restraints for the testing and commissioning phase. (Minutes 6/6/91, p. 2) TCS work with SWEC to gather all operating restrictions and recommendations relating to Bradley Lake within the past 2-3 years into one document for reference. (Minutes 6/6/91, p. 3) Develop operating scenarios with 80 MW and 90 MW caps. (Minutes 6/6/91, p. 7) Set the operating criteria for Bradley based on Homer Electric and Seward being subject to no more than stage two load shedding for any single contingency event, using interim operating criteria until such time as the final operating conditions are adopted by the PMC. (Minutes 7/2/91, p. 3) Oversee SWEC sponsored tests and other utility required tests. (Minutes 8/23/91, p. 3) Review Bradley Lake Operating Manuals. (Minutes 8/23/91, p. 3) Review of PTI Bradley Lake/Kenai Operating Guidelines. (Minutes 11/19/91, p. 2) Review of Bradley Lake Dispatcher Guidelines Summary. (Minutes 1/13/92, p. 4) Report on results of exciter tests. (Minutes 2/28/92, p. 2) Appoint a representative to accompany the tunnel inspectors. (Minutes 3/26/92 p. 7) Expansion of Bradley Lake Operating Conditions, interim operating levels. (Minutes 4/28/92, Attachment A, p. 2) =7=