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HomeMy WebLinkAboutBPMC Meeting - October 25, 1991 1RECORD VOPY FILE NO Freo_3 7 hei mM Nn PRO 3s be ro /asz)ez BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE October 25, 1991 Alaska Energy Authority Conference Room - 10:30 A.M. 1. CALL TO ORDER 10:30 A.M. 2. ROLL CALL 3. PUBLIC COMMENT 4. AGENDA COMMENTS * APPROVAL OF MINUTES August 23, 1991 6. TECHNICAL COORDINATING SUBCOMMITTEE REPORT te INSURANCE SUBCOMMITTEE REPORT 8. BUDGET SUBCOMMITTEE REPORT 9. OPERATION AND DISPATCH SUBCOMMITTEE REPORT 10. REVIEW OF PROJECT STATUS 11. OLD BUSINESS a. Dispatch Agreement 12. NEW BUSINESS a. Approval of Committee Expenses 13. COMMUNICATIONS a. Schedule Meeting 14. ADJOURNMENT 91q4/skb1688(1) Kelly Burlingame Petrie Ritchey Sieczkowski Eberle Sieczkowski Saxton @oo2 ATER WYNNE et al | 5503 226 007 19:04 4U/ 20% 8L wevmensderasswaeuwases 4 MVEA AMIE WIOLD PO pe 1001 ‘Aa Suboulted to Ater Wynne " 3,261,30 3,261.30 363.30 APPROVED AT BPMC MEETING __OCTOBER 25. 1991 Aly Ws 289.46 71.50 360.96 13,001.64 18,318.88 " 19,001.04 WY 317. 22 dh, $2, 13,001.64 22,499.82 RECORD VOPY FILE NO Alaska Energy Authority A Puplic Corporation October 11, 1991 Mr. Thomas Stahr, General Manager Municipal Light and Power 1200 East First Avenue Anchorage, AK 99501-1685 Re: September 3, 1991 Draft Bradley Lake Dispatch Agreement and your letter dated October 10, 1991 Dear Mr. Stahr: The concerns you have addressed in your letter and the faxogram dated September 30, 1991 is being taken under consideration. The Municipal Light & Power (ML&P) comments in the faxogram were provided to the Operation and Dispatch Subcommittee members as well as the September 3, 1991 draft. Each utility representative was asked to provide their comments to the Chairman by October 21, 1991 so a report could be made to the Bradley Project Management Committee (PMC). Your comments will be provided to the Operation and Dispatch Subcommittee for their consideration also. This draft is between Chugach and the Authority because it was felt the utilities interest was protected through the Power Sales Agreement, the Services Agreement and the Allocation and Scheduling Procedures which all utilities, who have an interested in the Bradley Lake Hydroelectric Project, are signatory. Since Chugach is the Dispatch Operator as referred to in the Services Agreement, and AEA oversees the operation and maintenance, this approach was taken. The term of the Agreement is negotiable and that was stated to the Subcommittee. The budget for the dispatching is still subject to the PMC's budget process and this Agreement will not bypass that process. Your offer to assist is appreciated. The Operation and Dispatch Subcommittee has been asked to collect all comments, provide those comments to the members, then 386 Box AM Juneau, Alaska 99811 (907) 465-3575 . Be x 0x 190869 7041 EastTudor Road Anchorage, Alaska 99519-0869 (907) 561-7877 Mr. Thomas Stahr October 11, 1991 Page 2 proceed to recommend the changes. A report will be made to the PMC at the October 25, 1991 meeting. incerely, —~ Mes Seth Charlie Bussell Executive Director SES/CB/ds cc: Mike Kelly, General Manager, Golden Valley Electric Association Ron Saxton, Council to the Bradley Lake Project Management Committee EEE: Siectkowsti, Director, Facilities Operation and Engineering RECORD TOPY k VUITLUTSL IMU 1Ur4i NILGP ULNENAL SIRNAULN FAK NU. YUlcosdZU4 P.01 1 FILE NO \\\ | Pro 3-hl MIN NX Po iat WY mn SNe iJ Municipality of Anchorage \ sdunlcipaliy of Anchorage Municipal Light & Power Qe Tom Fink, Mayor 1200 East First Avenue Anchorage, Alaska 99501-1685 October 10, 1991 (907) 279-7871, Telecopiers: (907) 276-2981, 277-9272 Charlie Bussell Executive Director Alaska Energy Authority P.O. Box 190869 Anchorage, AK 99519-0869 RE: September 3, 1991 Draft Bradley Lake Dispatch Agreement Dear Mr. Bussell: I view the Dispatch Agreement as the key document in deter= mining the commercial success of the Bradley Lake Project \“~ for the Purchasers, and I lock to the Operations and Dis- patch Subcommittee, chaired by AEA, to be the guarantor through monthly reviews for now) of the rights and en- titlements of the Project Purchasers. With this in mind, please consider the major shortcomings of the September 3, 1991 Draft Dispatch Agreement which Stan has asked the members of his Subcommittee to review: { + Ie is only between Chugach and the Authority, but should be by and among all the Parties to the Power Sales Agreement 2 - It makes no mention of the role of the Operations and Dispatch Subcommittee as the operational overseer and honest broker in monthly reviews of the issues that are sure to arise 4 - It stipulates a ten year term for the Project Dispatcher in conflict with the Service Agree- ment’s option of five years yi - It stipulates "Dispatcher Duties" in Exhibit A ; which go well beyond the requirement to merely enable the Purchasers to cbtain equity share of the Project and to audit same, and which have not been agreed to by all the Parties Putting Energy Into Anchorage UvIm1u-91 IMU 1Uu+4o TIL&Y ULNEXAL SIHNAUEK FAX NU, YU (2636204 P. 02 Charlie Bussell Alaska Energy Authority October 10, 1991 Page Two Be - It requires reference to other documents (Service Agreement, & Scheduling Procedures) to determine how @tepatcher duties will be carried out, and leaves some in ad hoc status or at dispatcher discretion b - It would bypass the budget process of both the Power Sales Agreement and the Bradley Lake Bylaws and gives carte blanche approval to all claimed dispatch expenses. In short, the draft in question needs extensive substantive changes (even beyond the shortcomings mentioned above) before it becomes the document that the Operations and Dispatch Subcommittee can implement to ensure successful and amicable Bradley operations. Please assure Stan that we will assist in anyway to help his Subcommittee craft an acceptable Agreement. Very typuly yours, 1 2 BL. Thomas R. Stahr General Manager cc: Mike Kelly, General Manager, GVEA Ron Saxton, Counsel to Bradley Lake PMC Tim McConnell, Power Manager, ML&P i NK Pystete ? (Pau CHUGACH ELECTRIC a ASSOCIATION, INC. xz ft Disp SSOCIATION INC May 22, 1991 Stan Sieczkowski Alaska Energy Authority 701 East Tudor Road Anchorage, Ak 99503 Re: Letter agreement for dispatch of Bradley Lake Hydroelectric Project testing output. . Dear Stan: Now that the Bradley Lake Hydroelectric Project (Bradley Lake) construction is nearing the operational testing phase, services will be required of Chugach Electric Association, Inc. (Chugach) to schedule and coordinate switching for the Project. As Chugach and the Alaska Energy Authority (AEA) have not yet completed negotiation of a final Dispatch Agreement, this letter will serve as an interim agreement. Specifically, Chugach and AEA agree that Chugach shall perform services for the Bradley Lake Hydroelectric Project under the terms of the attached March 1991 Draft Agreement for the Dispatch of Electric Power and for Related Services (Dr, Agreement) until a final dispatch agreement for Bradley )igke tS accepted or until September 1, 1991, whichever occurs i Chugach and AEA recognize that operation under this Draft Agreement does not in any way affect the ability of either party to negotiate provisions different from those in the Draft Agreement. Implementation of this agreement on an interim basis during pre-commercial testing of the project does not constitute or imply commercial operability of the project which is anticipated no earlier than September, 1991. If these terms are acceptable to AEA, please indicate this by aay on the signature line i aaa below. ny very truly yours, “ree this k day of May 1991 ee AS ot Nets i X = i 'D via a t. Highers General Manager Alaska Energy Authority Re 2 AN Ae... anzann Pic dnc Recta RE ——“THR=Yi=is5t lisSi2a F VHA. Chairman Kelly —rw'! Sesi ile 7 : — TU OH (40001 L>0 (Soc £ DRAFT Mace 14} COUNTERPART OF OF BRADLEY LAKE HYDROELECTRIC PROJECT AGREEMENT FOR THE DISPATCH OF ELECTRIC POWER AND FOR RELATED SERVICES (“DISPATCH AGREEMENT") by and among CHUGACH ELECTRIC ASSOCIATION, INC. and THE ALASKA ENERGY AUTHORITY $/ 2314) & Attest: DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 1 «oe Charlie Bussell, Secretary Vimar ase ew THIS AGREEMENT is entered into on , by and among CHUGACH ELECTRIC ASSOCIATION, INC. ("Chugach") and the STATE OF ALASKA, ALASKA ENERGY AUTHORITY ("Authority"), hereinafter collectively referred to as "Parties." SECTION 1. RECITAL (a) The Authority owns the Bradley Lake Hydroelectric Project ("Project"), and has sold the output to various utilities ("Pur- chasers''), including Chugach, under the Power Sales Agreement. (b) Chugach is designated as the dispatcher of energy from the Project ("Dispatcher"), and as the entity providing wheeling and related services to the other Purchasers under a certain "Agreement For the Wheeling of Electric Power and for Related Services" (the "Services Agreement"). SECTION 2. NATURE OF AGREEMENT Under this Agreement, Chugach will provide all cf the Dispatch out Pur Services needed to dispatch Project object as described more fully r in Exhibit A to this Agreement. This Agreement sets out the rights and duties of the Parties relating to the provision of Dispatch Services. DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 2 iv Os (ued. std (1 Soewde: aa n n D | m MAR-@1-1S91 1Stea F SEWM SEST SECTION 3. TERM A : MA (a) Term. (i) This Agreement will be effective when executed and after it has received any approvals required by the Rural Electrification Administration ("REA"), state regulatory agencies or any other approvals required by law or contract of the Parties. (ii) This Agreement will remain in effect for the life of the Project unless, under the terms of the Services Agree- ment, Chugach is replaced as Dispatcher, in which case it will terminate when Chugach ceases to be the Dispatcher. (iii) This Agreement shall not be terminated or other- wise affected by the construction of additional or alternative transmission facilities for delivering Project power to the Purchasers, regardless of whether the wheeling and related services Chugach provides under the Services Agreement are changed in accordance with such Agreement as a result of such additional or alternative transmission facilities being con- structed. (b) Amendments. This Agreement may be amended, extended, or terminated at any time by the written consent of the Parties, but no such amendment, extension, or termination shail be effective unless approved by the federal and state agencies (if any) whose approval is required at the time. DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 3 ace schliLe Ww pow ee ee SU Ces SECTION 4. DI ES OF DI. (a) Specific D .- The Dispatcher's duties shall be: Exh t (i) those set forth in Appendix A to this Agreement (which may include wheeling and related service duties arising under the Services Agreement, as well as duties arising solely under this Agreement); and (ii) such additional duties as the Project Management Committee ("PMC") and/or the tuthority may from time to time delegate to Chugach, anc whic. Chugach agrees in writing to accept, which additional duties, when so delegated and ac- Faveht 7 cepted, shall be set forth in an Appendix B to this Agreement. (b) Limitations on Dispatcher's duties. Although Chugach will dispatch the Project's output efficiently and prudently, Chugach shall not be required to dispatch such output or to operate its own system in any manner inconsistent with any other agreement related to the Project, or in any manner inconsistent with the efficient and prudent operation of Chugach's own system. Except as specifically provided in Exhibits A and B, this Agreement shall not require Chugach to install or operate on Chugach's system any facilities or equipment that Chugach would not otherwise have installed or operated on that system. ett fit provided itt Satis A ani-8,—ehis- DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 4 WwW Or ee ae SU SOc: 15:25: 'F HEWM SEATTLE ‘oO ‘oO Porg MAR-di-t (a) Reimbursable costs. The Authority shall reimburse Chu- gach for the following costs incurred by Chugach as Dispatcher, and such costs shall be appropriately included in the Project's annual budgets (i.e., such costs will be paid by all Purchasers of Bradley Lake Energy, including Chugach): (i) Labor and related costs: (A) The personnel costs attributable to performing the duties of Dispatcher (as distinct from personnel costs that Chugach would necessarily incur in operating and maintaining its own system); and (B) The costs of training personnel to perform the duties of Dispatcher, including familiarization with Project facilities and equipment through site visits and by other means. (ii) The costs of computer hardware and/or software used for dispatching the Project's output, or, if such hardware and/or software serves multiple purposes, then the portion of such costs fairly allocable to that portion of the hardware and/or software capability that is needed for the purpose of dispatching the Project's output. (b) Cost reimbursement standard. Chugach shall be reimbursed for all of the costs associated with dispatch services rendered under this agreement to the extent that Chugach would not need to incur such costs but for Chugach's role as Dispatcher. DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 5 1u om fromm a DU fF pOcUme fF reur MeKOWLT SSL bee mow Str 1oc (c) h the Aut ity. AS Dispatcher, Chugach acts as the agent for the Authority to dispatch Project output on behalf of the Authority so that the Authority is able to sell that output. In consideration for Chugach acting as Dispatch- er, the Authority will therefore indemnify and hold Chugach harm- less from all claims against Chugach in its capacity as Dispatcher, and from all claims based on Chugach's acts or omissions as Dis- patcher, to the full extent permitted by law; provided, that the Authority shall not indemnify or hold Chugach harmless to the extent of any liability arising from Chugach's gross negligence or Chugach's wanton, willful, or intentional misconduct. SECTION 6. ¢C T. AND_D. iL (a) Consultation. The Parties shall meet not less than once each quarter, and more frequently at the specific request of either Party, for the purposes set forth in this Section. Such meetings shall, if possible, be scheduled to coincide with other meetings among the Parties, such as Project Management Committee meetings. At such meetings, the Parties shall apprise one another of any planned changes in their systems that might affect the provision of services under this Agreement. (b) Di Resolution. The Parties shall attempt in good faith to settle reasonably any claim or controversy arising out of this Agreement. The Parties may agree to submit any claim or con- troversy to a mutually-acceptable mediator, the costs of which shall be borne equally by the Authority and Chugach. The use of DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 6 OM (ous a su vCcuue | ree ViKWULTLSIL fps OF row Sos ilo such a procedure shall not be construed to affect adversely the rights of either Party under the doctrines of laches, waiver or estoppel. Nothing in this section shall prevent any Party from resorting to judicial procedures. Any judicial action shall be filed in the Superior Court for the State of Alaska at Anchorage. SECTION 7. MI 01 VISION: (a) Waiver. Any waiver at any time by either Party of its rights with respect to any default of the other Party, or with respect to any other matter arising in connection with this Agree- ment, shall not be considered a waiver with respect to any prior or subsequent default, right or matter. (b) cces And Assigns. This Agreement and all of the terms and provisions hereof shall be binding upon and inure to the benefit of the respective successors and assignees of the Parties; provided, that no assignment or other transfer of this Agreement or any interest hereunder shall be edffective without the prior written consent of the other Party (which consent snall not be unreasonably withheld), and any successor or assignee must, in the commercially reasonable opinion of the other Party, be capable of assuming the obligations of the Party from which the successor or assignee has accepted assignment or other transfer. This Section 7(b) shall not prevent any assignment of a Party's rights hereunder for security purposes oniy, and shall not prevent a financing entity with recorded or secured rights from exercising all rights DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 7 WiMK—OLwssst 4 D°eO Ot row! Somes Ae Ue ae ecu: and remedies available to it under law or contract, provided that performance of this Agreement is not thereby impaired. (c) Performance Pending Resolution Of Disputes. Pending resolution of any dispute, each Party shall continue to perform its obligations under this Agreement, including but not limited to the Authority's obligation to reimburse Chugach for certain costs under Section 5(a) of this Agreement. Each Party shall be entitled to seek immediate judicial enforcement of this continued performance obligation notwithstanding the existence of a dispute. Application for such enforcement shall be made to the Superior Court for the State of Alaska in Anchorage. (d) Applicable Law. The laws of the State of Alaska shall govern the interpretation and application of this Agreement and the actions of the Parties hereto. (e) § ion Headings. The section headings in the Agreement are for convenience only, and do not purport to and shall not be deemed to define, limit or extend the scope or intent of the sec- tion to which they pertain. (£) Timing Of Cost Reimbursement. Cost reimbursement pay- ments from the Authority shall be due in the offices of Chugach by the 15th day of each month. Payment shall be mailed, directly deposited to Chugach, or may be paid in person, to Chugach's main office in Anchorage, Alaska. (g) WN ties. Notwithstanding that the operation of this Agreement may and is intended to confer benefits on third parties who are not sign- DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 8 riwwrw.tisse 4c! cr Mow some Rees ae ear y Sree atories to this Agreement, in promising performance to one another under this Agreement the Parties intend to create binding legal obligations and rights of enforcement in (i) one another, and (ii) one another's assignees or successors in interest. The Parties expressly do not intend to create any obligation or liability, or promise any performance to, any third party (including without limitation any individual or entity supplied with electric power by either Party or by any third party). The Parties have not ereated for any third party any right to enforce this Agreement. (h) Eor a@jeure. If and to the extent that either Party is prevented by an event or occurrence beyond its control from performing any obligation under this Agreement (other than the obligation to pay money), then that Party's performance of such obligation shall be excused, but only to the extent and for the period that such performance is so prevented. (i) Other Agreements. This Agreement does not modify, alter, or amend any other contract or agreement that now exists or that may in the future exist between the Parties. The Parties intend that this Agreement should be interpreted in a manner compatibie with other contracts and agreements associated with the Project. SECTION 8. DEFINITIONS (a) Agreement. This Agreement governing dispatch of Project output. DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 9 ro MAHR-W1-1issl loser rm Pew Soni icc (b) ka_E thority. The Alaska Energy Authority, an agency of the State of Alaska, and any successor thereto as owner of the Bradley Lake Hydroelectric Project. (c) Authority. See Alaska Energy Authority. (d) Bradley Lake Energy. Electric energy, expressed in kilo- watthours (kwh), generated at the Bradley Lake Hydroelectric Pro- ject for a Party in a manner consistent with the Power Sales Agree- ment and the applicable criteria, procedures, and guidelines adopt- ed by the Project Management Committee. As used in this Agreement, Bradley Lake Energy does not include energy produced by generators other than those located at the Bradley Lake Hydroelectric Project, regardless of whether energy or capacity from such other generators is or may be sold to a Purchaser pursuant to provisions of the Power Sales Agreement relating to reserves for the Project. (e) Dispatcher. Employee(s) of Chugach who perform or supervise the performance of those duties set forth to SR A and B hereto that relate to the dispatching of Project output. (f) Party. Either Chugach or the Alaska Energy Authority. (g) Power Sales A ement. The agreement for the sale and purchase of electric power from the Project entered into by and among the Authority and the Purchasers. (h) Project. The Bradley Lake Hydroelectric Project. (i) Pr ment Committee. The committee composed of the Authority and the Parties established under the Power Sales Agreement. DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 10 rin va seve arcu (3) Purchaser. Chugach or any other electric utility that buys Project power as a party to the Power Sales Agreement. (k) Df ¢ vices. Those duties with respect to the Project that Chugach performs as the Authority's agent under this Agreement (as distinct from services Chugach may provide or duties it may perform under other agreements) and which are described more particularly in Exhibit A and Exhibit B to this Agreement. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed the day and year first above written. CHUGACH ELECTRIC ASSOCIATION, INC. By As STATE OF ALASKA, ALASKA ENERGY AUTHORITY By As DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 11 10. EXHIBIT A - DISPATCH DUTIES Scheduling Bradley Lake transactions, comparison of scheduled vs. actual, and reconciliation of nets and inadvertent. Accounting for spin allocation and distribution of available spin. VAR dispatching, monitoring and regulating VAR flows and voltages at Bradley Lake and appropriate intermediate transmission facilities not associated with Chugach facilities. Operation - Monitoring of AEA equipment; generation units and associated inputs, transformers, and breakers. This list is expected to increase with the addition of static VAR systems. Coordinate operation of the Bradley Lake system. This includes switching for maintenance. scheduling of equipment and facilities, outages and time error correction after islanding situations. Monthly accounting summaries. Reconciliation of Bradley usage and reports to AEA. Coordinate usage of Bradley to comply with AEA preferred use and participants desired use. Especially in times of imminent spill. Coordinate real power flow in times of outages to intermediate transmission facilities and generation facilities of participant utilities. Coordinate real power flow to ensure that Bradley does not violate operating restrictions. Develop and maintain records of AEG&T/HEA Wheeling and applicable losses. Coordinate Bradley usage for outages to participant’s generation. DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY EXHIBIT A - PAGE 1