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HomeMy WebLinkAboutBPMC Meeting February 21, 1995 11. BRADLEY LAKE PROJECT MANAGEMENT COMl.ssTEE MEETING MINUTES Commission Room Anchorage Municipal Light & Power 1200 East 1st Avenue Anchorage, Alaska : Tuesday, February 21, 1995 10:00 a.m. CALL TO ORDER Chairman Norm Story called the meeting of the Bradley Lake Hydro- electric Project Management Committee to order at 10:05 a.m. in the Commission Room of Anchorage Municipal Light & Power, 1200 East lst Avenue, Anchorage, Alaska, to conduct the business of the Committee per the agenda and public notice. The following members were present: 2. ROLL CALL Alaska Energy Authority Dennis McCrohan, Designated Representative City of Seward Dave Calvert, Designated Representative Homer Electric Association Norm Story, Designated Representative Matanuska Electric Association Wayne Carmony, Designated Representative Anchorage Municipal Light & Power Tom Stahr, Designated Representative Chugach Electric Association Tom Lovas (10:10 a.m.), Alternate Representative Golden Valley Electric Association Mike Kelly (10:15 a.m.), Designated Representative Others Present: Stan Sieczkowski, AEA Eva Carpenter, AEA Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerritt Bob Hufman, AEG&T Lee D. Thibert, Chugach Electric Association Brian Hickey, Chugach Electric Association John S. Cooley, Chugach Electric Association Bradley Evans, Golden Valley Electric Association Steve Haagenson, Golden Valley Electric Association Myles Yerkes, Homer Electric Association Jim Hall, Matanuska Electric Association Doug Hall, Municipal Light & Power June Finkbiner, Municipal Light & Power gee () Bradley Lake Project Management Committee Meeting Minutes - Tuesday, February 21, 1995 Page 2 of 5 3. PUBLIC COMMENT None. 4. AGENDA COMMENTS There were no changes or additions to the agenda. 5. APPROVAL OF MEETING MINUTES - NOVEMBER 10, 1994 MOTION: Mr. Stahr moved to approve the January 12, 1995 minutes. Seconded by Mr. Calvert. Mr. Story stated "$100,000,000 aggregate" in the third line, last paragraph on page 4 of 7, should be "$1,000,000 aggregate." A voice vote was taken, and the minutes were approved as amended. 6. BUDGET SUBCOMMITTEE REPORT Mr. Lovas reported the Budget Subcommittee had met twice since the last PMC meeting. The following items were discussed: A. FY _ '96 Budget Mr. Lovas reported the Budget Subcommittee had begun preparation of the FY ‘96 budget, which needs to be approved by the PMC no later than March 30th and submitted to the Trustee by AEA no later than March 31st. He said quite a bit of work had been done on the Work Plan for the O&M component and the developing surpluses had been discussed. Mr. Lovas said the preliminary budget, which was available at this time, reflected some overall reductions from the 1995 budget. Mr. Lovas reported the classification and characterization of items in the O&M component will be finalized at the next Subcommittee meeting. The Budget Subcommittee anticipates presenting the FY ‘96 budget to the PMC at its next meeting in order to ensure timely submission to the Trustee by AEA before March 31. Mr. Lovas reported the Subcommittee had noted a condition which developed over the past year which required adjustments to the budget to allow for costs associated with septic system rework for the crews’ quarters and plant. Mr. Lovas reported the Subcommittee has not yet received the draft report on the ongoing FY ‘94 O&M audit. There is a single outstanding issue dealing with workers’ compensation collections and back credit. The Subcommittee is in the process of verifying the status of this issue and hopes to get the draft report for finalization prior to its next meeting. Bradley Lake Project Management Committee Meeting Minutes - Tuesday, February 21, 1995 Page 3 of 5 Mr. Lovas stated the Budget Subcommittee had also reviewed the self-insurance reserves issue. A mail survey had been sent to project participants requesting input on whether self-insurance would be acceptable. All respondents had agreed to self-insure at either the $1,000,000 or $2,000,000 level. Seward Electric had not yet responded. This would indicate there will be no need for a Bradley Lake budget item for an additional reserve to accommodate the deductible. The Budget Subcommittee will next meet on March 2, 1995, to finalize the FY ‘96 budget to present at the March meeting of the PMC. Mr. Lovas clarified the Subcommittee’s recommended FY ‘96 budget would be completed within a week following its March 2nd meeting. 7. OPERATION AND DISPATCH SUBCOMMITTEE REPORT Mr. Sieczkowski reported the O&D Subcommittee had not met since the last PMC meeting. A meeting is scheduled for March 2, 1995. Mr. Sieczkowski stated all operations and maintenance have been routine to date, with no unusual incidents. 8. INSURANCE SUBCOMMITTEE REPORT A. Insurance Subcommittee Report Mr. McCrohan reported he had no further information since the last PMC meeting. Mr. Story asked regarding the status of the officers insurance. Mr. McCrohan responded Mr. Beardsley had placed the officers insurance. Mr. Saxton asked if the Insurance Committee had dealt with the airplane crash claims reimbursements. Mr. McCrohan responded the information had been gathered, but he had no information regarding what has been done in Juneau with respect to this issue. 9. OLD BUSINESS A. Spinning Reserves Update Mr. Lovas reported the ASCC is continuing to work on the analysis of the amount of responsive reserve to retain on the system. The analysis of the winter period has been completed, and the summer months are currently being evaluated. Recommendations regarding actual spinning reserves to be maintained on the system are being formulated. Mr. Lovas said the system operators are being asked to continue to track actual operating reserves, in both responsive and non-responsive categories, so trends can be measured and evaluated. Mr. Lovas stated the same conditions appear to be true for the Bradley Lake Project Management Committee Meeting Minutes - Tuesday, February 21, 1995 Page 4 of 5 summer months as the winter period, and 70 percent of spin needs to be carried by responsive units. Mr. Lovas reported the issues of response characteristics of battery energy storage systems and shed in lieu of spin responsive- ness and how it contributes will be dealt with in more detail over the next few months. B. Status Update of Agreements Mr. McCrohan reported closure has been reached on three of the five agreements. However, in the process of reviewing the last two agreements, which relate to the SVC facilities, other issues were raised that need to be considered in the context of all five agreements. Mr. McCrohan added he felt the issues could be easily resolved. Mr. Saxton gave an overview of the issues mentioned by Mr. McCrohan, which deal with transmission rights and maintenance arrangements. Mr. Saxton stated two larger, but non-controversial issues were: (1) All agreements have been treated as between the State, acting as agent for the PMC, and the service providers. Mr. Beardsley had questioned whether it was appropriate for the State to act as the agent for the PMC. (2) With respect to the intercon- nect between the State line and the Homer system, HEA’s attorney, Rick Baldwin had raised several questions regarding how the Homer system is to be used. With respect to the latter, Mr. Saxton stated the technically correct way to address these issues is in the Homer Transmission Agreement as opposed to in the Interconnect Agreement. 10. NEW BUSINESS A. Approval of Legal Expenses and Other Expenses Mr. Lovas reported bills had been received from Ater, Wynne, Hewitt, Dodson & Skerritt in the amount of $7,163.57 for the month of December 1994 and $9,407.37 for the month of January 1995. MOTION: Mr. Calvert moved to approve payment of the above- mentioned legal expenses in the amount of $7,163.57 for December 1994 and $9,407.37 for January 1995. Seconded by Mr. Kelly. A voice vote was taken, and the motion passed unanimously. 11. COMMITTEE COMMENTS A. Next Meeting Date The next regular meeting of the PMC was scheduled for Tuesday, March 28, 1995, at 10:00 a.m., in the Commission Room of ML&P. Bradley Lake Project Management Committee Meeting Minutes - Tuesday, February 21, 1995 Page 5 of 5 12. ADJOURNMENT MOTION: Mr. Kelly moved to adjourn. Seconded by Mr. Calvert. There being no further business of the Committee, the meeting was adjourned at 10:25 a.m. 7 - Norm Story, C man ATTEST: Ren C cL Dennis V. McCrohan,‘ Secretary