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Home My WebLink AboutBPMC Meeting - October 25, 1991 2DATE: TO: FROM: SUBJECT: 91q4/skb1683(1) RECORD UOoPy FILE NO Alaska Energy Authority Pre 3 = MEMORANDUM October 10, 1991 Bradley Lake arlie Bussell Secretary, PMC October 25, 1991 Bradley Lake PMC Meeting Enclosed for review is a copy of the Draft Agenda for the October 25, 1991 meeting of the PMC. Please provide any corrections or additions to Chairman Kelly. The meeting place will be at Alaska Energy Authority in the Conference Room at 10:30 a.m. Also enclosed for your review is a copy of the draft meeting minutes of the August 23, 1991 meeting and the back-up material distributed at or resulting from the meeting. An executed copy of the July 2, 1991 meeting minutes is enclosed for your records. PH:CB:skb Enclosure as stated. ' dl BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE October 25, 1991 Alaska Energy Authority Conference Room - 10:30 A.M. 1. CALL TO ORDER 10:30 AM. Kelly 2. ROLL CALL 3. PUBLIC COMMENT 4. AGENDA COMMENTS 5. APPROVAL OF MINUTES August 23, 1991 6. TECHNICAL COORDINATING SUBCOMMITTEE REPORT Burlingame 7. INSURANCE SUBCOMMITTEE REPORT Petrie 8. BUDGET SUBCOMMITTEE REPORT Ritchey 9. OPERATION AND DISPATCH SUBCOMMITTEE REPORT Sieczkowski 10. | REVIEW OF PROJECT STATUS Eberle 11. OLD BUSINESS a. Dispatch Agreement Sieczkowski 12. NEW BUSINESS a. Approval of Committee Expenses Saxton 13) COMMUNICATIONS a. Schedule Meeting 14. ADJOURNMENT 91q4/skb1688(1) DRAFT BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE August 23, 1991 1. CALL TO ORDER Chairman Kelly called the Bradley Lake Project Management Committee to order at 10:00 a.m. in the Training Room at Chugach Electric Association in Anchorage, AK, to conduct the business of the Committee per the agenda and the public notice. 2. ROLL CALL Alaska Energy Authority Charlie Bussell, Designated Representative Brent N. Petrie, Designated Alternate Chugach Electric Association, Inc. David L. Highers, Designated Representative Joe Griffith, Designated Alternate Golden Valley Electric Association, Inc. Mike Kelly, Designated Representative and Chairman City of Seward E. Paul Diener, Designated Representative Homer Electric Association, Inc. Norman L. Story, Designated Representative Matanuska Electric Association, Inc. James D. Hall, Designated Alternate Municipal Light and Power Thomas Stahr, Designated Representative 9193/JD1475(1) Bradley Lake Project #mmittee Meeting Minutes August 23, 1991 Page 2 Others Present: Ron Saxton, Representing Ater, Wynne, Hewitt, Dodson & Skerrit Robert Hufman, Purchasing Utilities Dave Burlingame, Chugach Electric Association, Inc. David Eberle, Alaska Energy Authority John Cooley, Chugach Electric Association, Inc. Tim McConnell, Municipal Light and Power Moe Aslam, Municipal Light and Power Dave Fair, Homer Electric Association, Inc. Dave Calvert, City of Seward Penny Haldane, Alaska Energy Authority 3. PUBLIC COMMENT There was no public comment. 4. AGENDA COMMENTS The agenda was modified to include: 11. Old Business 13. C. Section 31 Costs D: Approval of SVS Contract Award. 5. APPROVAL OF MINUTES Hearing no objection, the minutes from July 2, 1991 were approved as corrected. 6. TECHNICAL COORDINATING SUBCOMMITTEE REPORT Dave Burlingame reported on the Technical Coordinating Subcommittee (TCS) meeting August 15, 1991. All SWEC sponsored tests and other utility required tests have been completed. These tests identified some problems; subsequent tests of the solutions have proved satisfactory. 9193/3D1475(2) Bradley Lake Project mmittee Meeting Minutes August 23, 1991 Page 3 The plant operated at a level of 103 MW for 10-15 minutes, 90 MW for 1 hour, and survived a 90 MW load rejection of electrical power plus over 50 MW water waste. In terms of water load rejection it rejected 120 MW. The plant output is now considered firm and all participants are starting to schedule Bradley accordingly. At the last Bradley Lake Project Mangement Committee (BPMC) meeting the TCS was directed to perform an energy study evaluating how the minimum operating restrictions would affect the available energy of the plant. AEA completed those studies and found approximately 1% difference even after the utility revised energy forecasts were used. The Kenai import study is not critical at this time and is currently on hold till more studies are completed by PTI. The Bradley Lake Operating Manuals are expected to be ready for review/adoption at the next BPMC meeting and will be placed on the agenda as new business. Overall, the plant is doing well. John Cooley had a question on the efficiency and Dave Burlingame said that this is still an outstanding item that will be addressed by Fuji next week. In response to Chairman Kelly's question, Dave Burlingame reported that a full reservoir is expected around September 15. Therefore, the minimum operating level will not be a problem in the coming months. Moe Aslam commented that recent work evaluating the disturbances on July 20 and August 3rd, has increased the level of confidence in PTI. Chairman Kelly thanked Dave and his subcommittee for the good work and the helpful report. INSURANCE SUBCOMMITTEE REPORT Brent Petrie reported that the quotes on property and boiler insurance premiums were $110,000 less than budgeted. The recommendation of this subcommittee is to keep the budget as is until June 30, 1992, and apply any overage to the next 12 month premium payment. This will improve the current cash flow situation. Hearing no objection, it was agreed to treat the premium payments in this manner. 91Q3/JD1475(3) Bradley Lake Project nmittee Meeting Minutes August 23, 1991 Page 4 Brent also reported that the insurance subcommittee is preparing an application for business interruption insurance. The premium costs will be based on information provided in the application documents and is not known at this time. This will be an action item for a future meeting. BUDGET SUBCOMMITTEE REPORT Ron Saxton provided the Budget Subcommittee report in Ken Ritchey's absence. The payment levels were finalized and billed at a higher level for 4 months and a lower lever for the remaining 6 months. The BPMC is requested to begin thinking about the next budget, since the budget preparation process will begin in the next 6-8 weeks. The last thing to report is that there will be more cushion than originally anticipated due to Section 31 costs and the insurance expense. Mr. Saxton suggested that as a conservative approach, this cushion should be held till the following year when an adjustment would be made, although it is possible that a mid-year revision could occur if things go well. After additional discussion on Chugach and Homer rates, Chairman Kelly asked that concurrence on the elements be reached and distributed prior to the next meeting. These will be new business items at the next meeting. OPERATION AND DISPATCH SUBCOMMITTEE REPORT John Cooley reported that this subcommittee had not met since the last BPMC meeting. Brent Petrie reported that Stan was weathered in at Wrangell, but had the documents with him and they were close to completion. Stan had expected that Brad Evans would be at the meeting today to provide a committee report. The committee will meet before the next meeting, review the final documents, and present them to the BPMC at the next meeting. Motion - Interim approval by the BPMC of the Agreement for the Dispatch o Electric Power and for Related Services ("Dispatch Agreement") by and among Chugach Electric Association, Inc. and Alaska Energy Authority. Motion by E. Paul Diener, second by Tom Stahr. Under discussion, Tom Stahr commented that any dispute between Chugach Electric and the AFA that required arbitration or resolution in the Courts would first be presented to the BPMC. Tom Stahr's comment is included in the motion. The motion passed unanimously. 91Q3/JD1475(4) Bradley Lake Project nmittee Meeting Minutes August 23, 1991 Page 5 10. 11. REVIEW OF PROJECT STATUS Dave Eberle reported that all testing is now completed and the plant is in the utility's control for firm power. Commercial operation is set for September 1 and the dedication will be on September 6. The water levels are doing well. Current level is 1,162 feet with 18 feet before spill. Estimated water levels are above the historical average. Dispatchers have been told that 63 GWH's must be used between now and December 1 or spill will occur. The utilities are scheduling accordingly. Dave Eberle reported that the SVS bids were opened (low bid ASEA Brown Boveri $14.2 million) and that all bidders were considerably higher than the engineer's estimate of $9.2 million or the budget amount of $9.3 million. The notice of intent to award was issued to determine if there would be a protest (none were received). Options for revising the scope of work have been discussed, but no substantial changes have been identified. Chairman Kelly asked Dave Eberle if the contingency funds would be adequate to cover the cost overruns. Dave replied that after allowing for the $5 million for SVS, $2-2.5 million would remain. Two possible needs for these remaining funds would be site rehabilitation costs not quantified yet and any additional SVS costs. SVS is expected to be on line for commercial operation in January 1993. OLD BUSINESS Dave Burlingame requested that the previous tabled motions requesting funds for transfer tripping be considered. Installation of transfer tripping will prevent the need to take the tieline out of service when output of Bradley Lake reaches 65 MW. Chugach does not want to take the line out of service. Motion - Approval of costs to install transfer tripping not to exceed $35,000 for Chugach Electric and $62,000 for Homer Electric. Motion by Dave Highers, second by Tom Stahr. Both Homer and Chugach assured that all costs are strictly related to Bradley Lake. The motion passed unanimously. 91Q3/JD1475(5) Bradley Lake Project nmittee Meeting Minutes August 23, 1991 Page 6 12. NEW BUSINESS A. 91Q3/JD1475(6) Dispatch Agreement John Cooley reported on the Scheduling and Allocation Agreement. After discussion it was determined that this agreement was approved at the July 2, 1991 meeting subject to the completion of Exhibits A and B. The dispatch services agreement between Chugach and the Alaska Energy Authority is awaiting comments from AEA. This final will be distributed to all utilities prior to the next BPMC meeting. Chairman Kelly has asked that all related documents (SWEC report discussing the parameters of operating Bradley) also be redistributed. It is expected that these agreements will also go to the Operation and Dispatch Subcommittee at the same time. Approval of Committee Expenses Chairman Kelly recommended that only reviewed expenses would be considered. Expenses received but not reviewed would be held for consideration at the next BPMC meeting. Brent Petrie received a request with back-up documentation for Ater, Wynne, Hewitt, Dodson & Skerrit cost reimbursement of $17,480.33. Motion - Approval of $17,480.33 expense. Motion by Charlie Bussell, seconded. The motion passed unanimously. Section 31 Costs Motion - Section 31 balances will be allocated to ongoing BPMC costs or to defray budget expenses. Motion by Charlie Bussell, second by Tom Stahr. Discussion on documentation for Gloria resulted in the recommendation that a certifying block be added for each expenditure approved. This motion passed unanimously. Bradley Lake Project nmittee Meeting Minutes August 23, 1991 Page 7 D. Approval of SVS Contract Award. Motion - Approval to issue SVS contract award and notice to proceed. Motion by Dave Highers, second by E. Paul Diener. This motion passed unanimously. E. Further Business Dave Eberle reported that he had received a bill from HEA for standby spinning during testing. It was decided that these and other related bills would be placed on the agenda as new business (Power generation expenses related to testing) at the next meeting. 13. COMMUNICATIONS A. Schedule Next Meeting October 25, 1991 (Friday) 10:00 a.m. Chugach Electric Association Training Room 15. ADJOURNMENT There being no further business the committee adjourned at 11:43 a.m. Mike Kelly, Chairman Attest: Charlie Bussell, Secretary Approved at the August 23, 1991 BPMC MEETING 91Q3/3D1475(7) BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE JULY 2, 1991 CALL TO ORDER Chairman Kelly called the Bradley Lake Project Management Committee to order at 10:08 a.m. in the Training Room at Chugach Electric Association in Anchorage, AK to conduct the business of the Committee per the agenda and the public notice. ROLL CALL Alaska Energy Authority Charlie Bussell, Representative Brent Petrie, Alternate Chugach Electric Association David L. Highers, Representative Joe Griffith, Alternate Golden Valley Electric Association Mike Kelly, Representative and Chairman City of Seward E. Paul Diener, Representative Homer Electric Association Norman L. Story, Representative Matanuska Electric Association Ken Ritchey, Representative Municipal Light and Power Thomas Stahr, Representative Hank Nikkels, Alternate Other Present: Ron Saxton, Purchasing Utilities Moe Aslam, Municipal Light and Power Dave Calvert, City of Seward Bradley Evans, Chugach Electric Association Tim McConnell, Municipal Light and Power Bob Hufman, Alaska Electric Generation & Transmission David Fair, Homer Electric Association David Burlingame, Chugach Electric Association Tom Lovas, Chugach Electric Association John Cooley, Chugach Electric Association David Eberle, Alaska Energy Authority Stanley Sieczkowski, Alaska Energy Authority DeAnna Scott, Alaska Energy Authority Patti Harper, Alaska Energy Authority Mark Harris, ARECA PUBLIC COMMENT There being no public comment, Chairman Kelly proceeded to agenda item 4. AGENDA COMMENTS Chairman Kelly asked if there were any additions to the agenda. Under number 13, New Business; Item A to reflect Election of Officers and Item 13 e added to include discussion on the Dedication Services of the Bradley Project. APPROVAL OF MINUTES Chairman Kelly asked for corrections or additions to the June 6, 1991 meeting minutes. Mr. Story corrected, Dave Fair is now with Homer Electric and not Chugach Electric. Mr. Saxton corrected under Bradley start-up and commercial operation "the life of operation is 90MW level and should say although length operation at the 90 MW level is not covered under the Power Sales Agreement. Reasonable operation and scheduling output on a commercial basis is required." On page 8, "delete the PMC tax exempt status and insert, "bonds tax exempt status". On page 8, under CHAIRMAN KELLY instruction to the TCS it should read Chairman Kelly instructed the TCS, through Mr. Burlingame, to develop operating scenarios with 80 MW and 90 MW caps. Mr. Highers stated again on page 8, starting with "MR. HIGHERS stated this turbine would be on-line due to the absence of the second transmission line", add, "prior to Bradley Lake operation". The June 6, 1991 meeting minutes were approved with these modifications by acclamation. TECHNICAL COORDINATING SUBCOMMITTEE REPORT Mr. Burlingame reported there was one full committee and one subcommittee meeting. The full committee has requested SWEC to put together the operating guidelines, reports, and studies that have been completed and accepted for the use of the PMC. The Subcommittee of the TCS met to discuss the start-up and testing requirements. Mr. Burlingame stated there is an advisory memo attached to the TCS report which seeks guidance from the PMC, because the minimum operating criteria has the TCS bogged down. The Long Term Operating Limits study will be started after the Interim Operating and Import Study has been completed by PTI. Mr. Burlingame asked that the PMC refer to the memo addressing the Kenai Import Levels - Advisory Item. He stated the TCS is requesting future direction to properly address the acceptable level of load shedding and avoid contractual obligations. The TCS took eight cases out of the twelve months and evaluated what the limits of Bradley Lake would have to be to achieve the same risk of load shedding. This issue needs to be addressed. The TCS is asking for specific directions as to what percentage or stage of load shedding should HEA be subject to. Chairman Kelly asked that this subject be suspended and address Mr. Highers letter that was circulated between HEA and CEA that dealt with Bernice turbine. Mr. Highers stated that his staff along with Mr. Story and staff met and discussed at length the obligations of what would happen as far as running the turbine on the Kenai after Bradley is on line. Mr. Highers stated the letter signed by both he and Mr. Story gives basically the position that the TCS is in now. Mr. Highers suggested the letter be read because it may answer some of the questions. Mr. Highers stated that the last paragraph is a recommendation to the PMC for the Operations and Dispatch Subcommittee to have an assignment over this. Mr. Highers recommended the assignment to the TCS on the Minimum Operating Criteria not deal with contractural matters but to deal specifically with the issues that have been presented. Mr. Stahr suggested that a complete full load distribution curve for Homer be developed and applied against the total energy from Bradley to determine what remains available for dispatch and scheduling. Mr. Highers moved, seconded by Mr. Story that the TCS sets 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. . Mr. Stahr moved that this motion be tabled until the results from the other study are available. Mr. Stahr's motion failed for the lack of a second. Mr. Highers amended the motion to this interim operating criteria shall be used until such a time as that the final operating conditions are adopted by the PMC. Chairman Kelly asked the roll to be called. The motion with its amendment passed unanimously. Mr. Burlingame stated that there was one motion for the Operations and Dispatch Subcommittee. Mr. Highers_ moved, Mr. Stahr seconded that the PMC direct the Operations and Dispatch Subcommittee to development a procedure 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. The roll was called and this motion passed unanimously. INSURANCE SUBCOMMITTEE REPORT Mr. Petrie stated that the Insurance Subcommittee had nothing to report at this meeting. BUDGET SUBCOMMITTEE REPORT Mr. Ritchey reported the Budget Subcommittee met and will be meeting on July 22, 1991. Mr. Ritchey stated the Budget Subcommittee members are in the process of reviewing the latest information distributed by Chugach Electric addressing the wheeling charges. The subcommittee has looked at the Homer Electric O&M expenses for the transmission line and had no problem with the numbers. The subcommittee has sent a letter to HEA and ask for a calculation under their wheeling agreement. The Budget Subcommittee recommends to the PMC the monthly payments be made at the beginning of the month to meet the mid-December obligation. 10. Li. The Subcommittee is working to delay as many expenses as possible in the first year. The committee is looking at reducing the reserve account to help pay the debt service. Mr. Saxton stated that the easy way to solve the cashflow problem would be to have higher payments for the first few months of the first year and anything left that would be left would stay to the benefit of the utilities which would be applied to the second year budget. Another suggestion was to have uneven payments for the first year operation. Both suggestions are at odds with the instructions the PMC gave to the Budget Subcommittee by having the absolute lowest payment possible for the first year. The uneven payments, however, are at odds with the language for 12 month payments. It is within the PMC's power to change both of those. The payments for the first four months would be about $100,000 higher and then the second 6-months the payment would be leveled but a lower cost. Chairman Kelly asked if the PMC had any objections to the first payments being higher for four months. No objections were stated. Chairman Kelly gave the subcommittee two directives from the PMC: 1) the first four months of FY92 the payments to the trustee would be higher to eliminate the cashflow problem and 2) the payments will be due on the first of each month. OPERATION AND DISPATCH SUBCOMMITTEE REPORT Mr. Sieczkowski reported that the Operation and Dispatch Subcommittee met on June 20, 1991. There were no conclusions or decision coming out of that meeting. AEA is working on updating the allocation information developed by SWEC. Mr. Evans stated that CEA has submitted test power cost information for combustion turbines related to testing. CEA has agreed to certain conditions on test power and agreed to some fundamental load restoration. Work has been completed on dispatching to the Homer system to Dimond Ridge. Interchange schedules have been developed and passed out to all of the participants for comments. Station service accounting for the power plant was suppose to be submitted by Homer. A loss table for HEA is still pending so the subcommittee can schedule the project and know what losses to allocate to Homer BRADLEY LAKE AGREEMENT SUBCOMMITTEE REPORT Mr. Sieczkowski reported the Subcommittee met on June 13, 1991 and reviewed the existing agreements and went over the assignments. Future agreements that may need to be develop for the Bradley Project such as a Memorandum of Understanding for the interconnecting utility operation between CEA and Homer to direct them to perform switching. Another draft was received from CEA on June 21, 1991 for the Dispatch Agreement and it is being reviewed. The Subcommittee looked at the other agreements for consolidation and coverage. AEA will contact Homer Electric to pursue the AEG&T Transmission Line Agreement. Chairman Kelly asked if there were any comments or questions. The Dispatch Agreement is to be submitted to the Operations and Dispatch Subcommittee and the PMC for review. REVIEW OF PROJECT STATUS Mr. Eberle reported the General/Civil contractor is complete. There is some minor painting, guard rail repairs, and miscellaneous punch list items left to be done. The Construction Camp was closed July 1, 1991 and is in the process of being demoblized. The powerhouse construction is physically complete., Clean-up and on-staff support is all that is on-site. Synchronized test was completed a couple of weeks ago and units loaded to ten percent power. The week of June 24, 1991 there was no active testing, they were working on some punch list work. The week July 1, 1991, remote start and 125 13. stop testing will begin and the week of July 8, 1991 we will get into the serious loading of the units and load rejection tests. The target date for utility testing is set for July 26, 1991. Water in the reservoir, on July 2, 1991, was at level 1121. The run off should continue very heavy throughout July and August. If there is not a tremendous amount of water used during the testing phase, we should have a full pool by September 1, 1991. UNFINISHED BUSINESS A. Bernice Lake Gas Turbine Generator Operation Costs This item was addressed under Item number 6, Technical Coordinating Subcommittee Report. NEW BUSINESS A. Election of Officers Chairman Kelly appointed Mr. Diener, Mr. Ritchey and Mr. Story to serve on the nominating Committee for the Bradley Lake PMC offices. The PMC recessed at 11:50 a.m. in order to allow the Nominating Committee to meet and select their nominees. The Bradley Lake PMC meeting reconvened at 12:00 p.m. Chairman Kelly asked for a report from Mr. Diener Chairman of the Nominating Committee. Mr. Diener reported the Nominating Committee agreed unanimously to moved that the current office holders be extended for the next term.:Chairman,Mike Kelly; Golden Valley Electric, Vice-Chairman, David Highers; Chugach Electric _and, Charlie Bussell, Secretary/Treasure, Alaska Energy Authority. Mr. Highers seconded. The roll was call. This action passed unanimously. B. Resolution Regarding Project Completion and Commercial Operation Mr. Saxton reported that this resolution was completed on July 1, 1991. This resolution restates the cost of acquisition and construction will continue until the project is completed which will be after commercial operation. Mr. Saxton requested the PMC to review the resolution. The resolution was reviewed by the PMC members and Mr. Stahr moved, Mr. Ritchey seconded that the Bradley Lake PMC adopt the Bradley Lake Project Management Committee Concerning the Alaska Energy Authority Obligation to Complete the Bradley Lake Hydroelectric Project and to Share the Cost of Acquisition and Construction With the Power Purchasers Until the Project is Complete Resolution. The roll was called. This action passed unanimously. CG Upper Battle Creek Diversion Mr. Eberle reported he is awaiting some detailed survey information. Mr. Eberle went to the area the week of June 24, 1991 and thinks the scope of work can significantly reduced. He would hope to do it for $250,000 or less based on what was seen. AEA should have more information the week of July 8, 1991. 14. Allocation and Scheduling Procedure Mr. Sieczkowski reported that the Operation and Dispatch Subcommittee recommended the Allocation and Scheduling Agreement be adopted subject to the completion of Exhibits A and B. Mr. Ritchey moved, Mr. Highers seconded the recommendation. Mr. Sieczkowski stated that on Exhibit A is a description of the reservoir operation model and as it was explained, this was the model to be used by the dispatchers. Exhibit B is a description of the project operating criteria and will define operational issues. Mr. Fair stated that HEA propose to make the change to delete the $5.00 per MWH at this point. Chairman Kelly asked if this was being made in the form for of an motion or to amend the motion. Chairman Kelly asked if there was a second to the motion to amend? Hearing no second the motion to amend dies for the lack of a second. Considering the main motion, Chairman Kelly asked if there were further comments or questions. Mr. Highers asked if it was appropriately stated as a procedure? Mr. Saxton stated, back in December this document was changed from an Agreement to a Procedure to be adopted by the PMC. Mr. Story stated that under Section 1 (aa) to add systems condition. Mr. Story moved seconded by Mr. Highers to amend the motion to include under a_on page 3 (aa) to add language after account to state as system conditions, equipment and project administration. Chairman ask if there was any discussion on the motion to amend, being none the roll was called. The roll was called with Messrs. Story, Kelly, Bussell, Diener, Ritchey voting yes and Mr. Stahr voting no. The motion passed. With the main motion being on the floor, Chairman Kelly asked there was further discussion on the main motion, being none the roll was called. This motion passed unanimously. Bradley Lake Dedication Mr. Eberle stated that August 23, 1991 is the date preferred by the Governor's Office. Mr. Bussell stated that AEA is developing the program around August 23, 1991. The list is being developed to determine and define details. As soon as AEA has ironed out the detains, we will have a draft to the PMC for review. COMMUNICATIONS A Scheduled Meeting August 16, 1991 Chugach Electric Association Training Room - 10:00 A.M. 15. ADJOURNMENT Hl * rther busin Y the Committee, the meeting was adjourned at 1:10 p.m. iy! Kelly Charlie Bussell, Secretary Approved at the August 23, 1991 PMC Meeting Bradley Lake Operation and Dispatch Subcommittee Meeting July 25, 1991 The meeting was held at Chugach Electric Association, Inc. Those in attendance were: Afzal Khan, Alaska Energy Authority Eric ee Alaska Energy Authori Dou Tim g Hall, Anchorage Munici a Light & Power c Connell, Anchorage Municipal Light & Power Marc Riddle, Golden Valley Electric Association, Inc. Sam Matthews, Homer Electric Association, Inc. Mike Yerkes, Homer Electric Association, Inc. Dave Burlingame, Chugach Electric Association, Inc. I. No previous meeting minutes were adopted. Il. Agenda Items added under work session were: h. i. Bradley Testing Update and; Verification process for combustion turbines services. The agenda with the additions was approved. Ill. | There was no committee correspondence. IV. | Work Session a. 91Q4\JD1725(1) It was reported that Allocation and Scheduling Procedures were adopted as presented to the BPMC during the July 2, 1991 meeting. Ron Saxton is to send final copies to the committee members in August. Exhibit A of the procedures will be developed after the testing of Bradley is completed. This will enable any relevant testing results to be incorporated into the exhibit. The reservoir model is to be completed and documented by September 15th and incorporated into the procedures. The Bradley Lake Dispatch Agreement is currently under review by AEA. After AEA review, draft copies will be sent to this committee for review before being submitted to the BPMC. Tim McConnell submitted a draft referendum of spinning reserve issues and requested the Operations & Dispatch Subcommittee consider analyzing the issues. After discussion, the committee recommended no action be taken. Bradley Lake Operati & Dispatch Meeting Minutes July 25 1991 Load restoration procedures were revisited with an additional affirmation given to the utilization of deflector mode for load restoration. Chugach dispatch will endeavor to use this mode when appropriate and as authorized by the Operations Subcommittee. For loss accounting, HEA was rogues to approve a table of losses to be used by the Bradley Dispatc HEA agreed that for reduced losses on their system resulting from Bradley M periaeatiort they would accept the zero loss concept. The table of aes for both the AEA system and HEA are attached. Note the HEA losses are based on an average load of 65 MW. CEA will incorporate this table of information into its scheduling program as soon as possible. Eric Marchegiani provided a handout on Bradley Lake Reservoir Reg ney Production. Information provided included available energy for the next twelve months from Bradley based on two SWEC computer runs. Each utility is to review the handouts. AEA need new schedules from each utility based on the handout by August 15. The total available energy is 335 GWH. Transmission outages were discussed regarding the 115 kv line south and University Substation. The exact schedule was not known, but September appears to be the first month of concern. There was some discussion on agreements, but no action was recommended. The agreement between the State and HEA was not ready and will be passed before this committee before submittal to the pce The Dispatch Agreement is currently being reviewed by the tate. Testing to date was discussed. The discussion centered around unit efficiency, governor control, excitation, and actual system response versus PTI's modeled response. No action from this committee resulted from the discussion, but a great deal of concern was noted. There was no discussion regarding the utility test plan as outlined in the Start-Up Committee meeting minutes of July 8, 1991 (attached). Attached is an excerpt from BPMC meeting minutes as provided by AEA. Several ideas were discussed in terms of verification. No outstanding concerns were noted regarding verification. |The discussion mainly focused on when combustion turbines would be required for Bradley. Everyone agreed that Table one from the PTI interim operating sid would be used for dispatching guidelines until such time as the study was completed to meet its original scope. Vv. Committee Action and Recommendation 1. 91Q4\JD1725(2) Brad Evans moved that the Bradley Lake Dispatcher use Table 1 from the PTI Interim Operating Study, March 19,1991. Marvin Riddle seconded and the motion passed. Bradley Lake Operat & Dispatch Meeting Minutes July 25 1991 Marvin Riddle moved that the Committee direct HEA to provide costs for the Bradley Lake station service energy as currently supplied by HEA. Doug Hall seconded and the motion passed. Brad Evans moved that HEA provide the Bradley Lake Dispatcher with a table of losses based on the HEA average system load. Marvin Riddle seconded and the motion passed. Doug Hall moved that AEA redo the metering and multipliers for Bradley station service and unit meter outputs. Marvin Riddle seconded and the motion passed. Marvin Riddle moved that AEA work towards a 91-92 water year allocation by September 1, 1991. Doug Hall seconded and the motion passed. VI. The agenda for the next meeting was not finalized. The meeting adjourned. 91Q4\D1725(3) Bradley Lake Operation and Dispatch Subcommittee Meeting September 30, 1991 Chairman Stanley E. Sieczkowski called the meeting to order at 10:03 a.m. in the Alaska Energy Authority Conference Room. Those in attendance were: poco Sr Sieczkowski, Alaska Energy Authority Larry Wolf, Alaska Energy Authority Brad Evans, Chugach Electric Association, Inc. John Cooley, Chugach Electric Association, Inc. Tim McConnell, Anchorage Municipal Light & Power Doug Hall, Anchorage Municipal Light & Power Marvin Riddle, Golden Valley Electric Association, Inc. Mike Yerkes, Frank Moolin & Associates (representing Homer Electric Association, Inc.) I. ADOPTION OF MINUTES The minutes of July 25, 1991 were approved subject to the correction noted. Approved copy attached. Il. AGENDA No modifications made.. Ill. CORRESPONDENCE a. Letter from Homer Electric Association, Inc. (HEA) dated August 2, designating Mike Yerkes of Frank Moolin & Associates to assist in committee representation and be a voting designee in Sam Matthews absence. b. Letter from Chugach Electric Association, Inc. (CEA) dated September 23, providing comments to the Bradley Lake Allocations. c. Fax from Anchorage Municipal Light & Power (ML&P) on September 30, 1991 with comments to the September 3rd Draft Bradley Lake Dispatch Agreement. d. Letter from Golden Valley Electric Association (GVEA) dated September 23, for costs incurred by GVEA during July for Bradley Lake unit testing. Cs The Bradley Lake Agreements Subcommittee Agreement List and Assignment Schedule dated September 16, 1991. This was provided with the agenda by AEA. 91Q4\JD1725(1) Bradley Lake Operat ; & Dispatch Meeting Minutes September 30, 1991 IV. WORK SESSION a. March 19, 1991, Table I (copy attache The Allocation and Scheduling Procedure Exhibits A and B These procedures were discussed. Exhibit A Reservoir Model needs additional work. It is difficult to use and simplification is desired to input and output the data. The program needs to be demonstrated by the developer for usability by the dispatchers. Exhibit B is still waiting technical data from the start up tests to describe all the operating modes. The Technical Coordinating Subcommittee stated the data should be available in three weeks and be provided. A copy of the "Dispatch Operations Manual" was considered for inclusion into this Exhibit B. Dispatch Agreement Draft There were numerous comments received (including the written comments from ML&P.) Language for budget review, signatory parties and references to or coordination with other agreements was discussed. Members were provided ML&P comments and will review and respond to proposals. Project Operating Criteria and Spinning Reserve The operating criteria and spinning reserve discussion evolved into several issues. The criteria and spinning reserve needs to be defined. The Technical Coordinating Committee needs to provide some recommendations for: 1. The spinning reserve amounts and time required. 2. The situation for Bradley power plant and the transmission line. has been accepted for the interim The Power Technology Inc. "Interim oa) has Study for Bradley Lake" of d operations for upper limits and a 10 M d. 91Q4\JD1725(2) lower limit has been agreed to. Load Restoration Procedures These procedures have been accepted. ML&P requested a log of when the Bradley units are operated in deflector mode. The contractor was requested to provide information for the deflector mode operation. Loss Accounting and Billing Procedures CEA provided a chart and explained the Zone 1 and 2 loss scheduling and accountability. Bradley Lake Operat & Dispatch Meeting Minutes September 30, 1991 Power Allocations AEA provided a new power allocation table showing monthly energy available from October 1, 1991 to September 30, 1992. The estimated energy available for the year is 368,142 MWH. The utilities are to review their schedule and provide their energy takes on a monthly basis to AEA so another allocation schedule can be run. Annual Maintenance and Outage Schedule The utilities annual maintenance and planned outage schedule was discussed. Coordination of line and unit outages is required to optimize the energy resources and improve reliability. Planned Outages on the transmission lines of 1 day each (4 of these) in November and outage of Bradley units (2 weeks for each unit) in January 1992 were scheduled. A 3 week outage starting November 21, 1991 of the Kenai Transmission Line was confirmed. A determination is required for reducing Bradley Lake generation when overflow of spillway ceases. A reservoir height of 1178 ft. was proposed as the level to reduce generation to prevent overtopping and provide storage for excessive unexpected inflows. This proposal will be reviewed by the utilities. V. ACTIONS AND/OR RECOMMENDATIONS a. 91Q4\D1725(3) Allocation and Scheduling Procedures The "Reservoir Operation Model" comments are due to chairman by October 21, 1991. Dispatch Agreement The Bradley Dispatch Agreement comments are due to chairman by October 21, 1991 and they will be sent to each committee member. Operating Criteria and Spinning Reserve Requirements The chairman will obtain a ns of the Spinning Reserve recommendations from the Technical Coordinating Subcommittee. Load Restoration Procedures A log of the Deflection Mode Operation will be provided to committee members by Chugach Electric Association, Inc. Power Allocations 1. The allotment and energy use schedule will be updated by each utility and their schedule provided to AEA for another reservoir model run. Bradley Lake Operati & Dispatch Meeting Minutes September 30, 1991 2. Each member utility outage schedule shall be reviewed. the schedules are to be shared with each utility so an annual system schedule can be developed and energy take scheduled. 3: The Bradley Lake level is to be determined for when to reduce generation and system support to optimize energy take after overflow stops. The utilities to discuss and determine the level by the end of next week. f The PTI interim operating study needs to be finalized. Unit tripping as reviously agreed to needs to be installed to facilitate higher operating evels during this period of excessive water. The chairman to follow up on these two items. VI. MEETING The next meeting was scheduled for November 5, 1991 at 10:00 a..m. in the Alaska Energy Authority Conference Room. The meeting adjourned at 1:55 p.m. 91Q4\JD1725(4) ACA We DRAFT September 3, 1991 COUNTERPART OF OF BRADLEY LAKE HYDROELECTRIC PROJECT AGREEMENT FOR THE DISPATCH OF ELECTRIC POWER AND FOR RELATED SERVICES ("BRADLEY LAKE DISPATCH AGREEMENT") by and among CHUGACH ELECTRIC ASSOCIATION, INC. and THE ALASKA ENERGY AUTHORITY DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 1 DRAFT September 3, 1991 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. RECITALS (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 an "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 of the Dispatch Services needed to dispatch Project power output as described more fully 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 DRAFT September 3, 1991 SECTION 3. TERM OF AGREEMENT; RELATED MATTERS (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, the Bradley Lake Project Management Committee or any other approvals required by law or contract of the Parties. ten year> Hy, 4 y (ii) This Agreement will remain in effect for the life-efthe Prejeet unless, under the terms of the Services Agreement, Chugach is replaced as Dispatcher, in which case it will terminate when Chugach ceases to be the Dispatcher. (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 shall be effective unless approved by the federal and state agencies (if any) whose approval is required at the time. SECTION 4. DUTIES OF THE DISPATCHER (a) Specific Duties. The Dispatcher's duties shall be: (i) those set forth in Exhibit A to this Agreement; and DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 3 DRAFT September 3, 1991 (ii) such additional duties as the Bradley Lake Project Management Committee ("BPMC") and/or the Authority may from time to time delegate to Chugach, provided that these duties are reasonably necessary for the dispatch of Bradley Lake Energy and not in conflict with paragraph (b) of this Section 4 of this Agreement. Chugach shall not be obligated to perform these duties until a) Chugach receives reasonable assurances that it will be fully compensated for the performance of the additional duties by a written commitment from either the Authority or the BPMC and b) those duties have been set forth in writing and shall be attached to this Agreement as Exhibit B. (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 unless those additional facil- DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 4 DRAFT _ September 3, 1991 ities or equipment are a) oarcatacsk het to accomplish the purposes of this agreement, b) consistent with the policies ex- pressed in the immediately preceding sentence and c) funded and approved in advance and in writing by the BPMC. To the extent possible consistent with the first sentence of this subsection (b) of this Section 4, Chugach shall dispatch Bradley Lake Energy efficiently and prudently for the benefit of the integrated system. SECTION 5. COST REIMBURSEMENT & RELATED MATTERS (a) 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. Acceptance of this agreement by the BPMC shall constitute agreement with this standard and agreement by the BPMC to authorize reimbursement of the Authority for all payments made by the Authority to Chugach in accordance with this standard. (b) Reimbursable costs. The Authority shall approve and reimburse Chugach for the following costs consistent with Section 5(a) incurred by Chugach as Dispatcher: (i) Labor and related costs: (A) The personnel costs attributable to performing the duties of Dispatcher (as distinct from personnel DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 5 DRAFT September 3, 1991 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, training and by other means. (ii) The costs of computer equipment 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. The Bradley Lake allocation of these costs shall be documented annually. (c) Chugach as agent for the Authority. 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 Dispatcher, the Authority will therefore indemnify and hold Chugach harmless from all claims against Chugach in its capacity as Dispatcher, and from all claims based on Chugach's acts or omissions as Dispatcher, 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 DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 6 DRAFT September 3, 1991 gross negligence or Chugach's wanton, willful, or intentional misconduct. SECTION 6. CONSULTATION AND DISPUTE RESOLUTION (a) Consultation. The Parties shall meet as required but not less than annually, for the purposes set forth in this Section. (b) Dispute 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 controversy to a mutually-acceptable mediator, the costs of which shall be borne equally by the Authority and Chugach. The use of 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. MISCELLANEOUS PROVISIONS (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 Agreement, shall not be considered a waiver with respect to any prior or subsequent default, right or matter. DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 7 DRAFT _ September 3, 1991 (b) Successors 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 effective without the prior written consent of the other Party (which consent shall 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 only, and shall not prevent a financing entity with re- corded or secured rights from exercising all rights 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 DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 8 DRAFT September 3, 1991 for such enforcement shall be made to the Superior Court for the State of Alaska in Anchorage. (ad) 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) Section 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 section to which they pertain. (f£) Timing Of Cost Reimbursement. Cost reimbursement payments 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) No Third Party Beneficiaries Or Liability To Third Parties. Notwithstanding that the operation of this Agreement may and is intended to confer benefits on third parties who are not signatories 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 DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 9 DRAFT September 3, 1991 (including without limitation any individual or entity supplied with electric power by either Party or by any third party). The Parties have not created for any third party any right to enforce this Agreement. (h) Force Majeure. 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 compatible with other contracts and agreements associated with the Project. SECTION 8. DEFINITIONS (a) Agreement. This Agreement governing dispatch of Project output. (b) Alaska Energy Authority. 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. DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 10 DRAFT September 3, 1991 (d) Bradley Lake Energy. Electric energy, expressed in kilowatt hours (kwh), generated at the Bradley Lake Hydroelectric Project for a Party in a manner consistent with the Power Sales Agreement and the applicable criteria, procedures, and guidelines adopted 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 in Exhibit A and B hereto that relate to the dispatching of Project output. (f) Party. Either Chugach or the Alaska Energy Authority. (g) Power Sales Agreement. 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) Project Management Committee. The committee composed of the Authority and the Parties established under the Power Sales Agreement. DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 11 DRAFT September 3, 1991 (3) Purchaser. Chugach or any other electric utility that uys Project power as a party to the Power Sales Agreement. (k) Dispatch Services. 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 12 DRAFT _ September 3, 1991 EXHIBIT A - DISPATCHER 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. Coordinate operation of the Bradley Lake systen. 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 desire use, especially in times of imminent spill. Coordinate real power flow in times of outages to intermediate transmission facilities and generation facilities of DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 13 10. 11. 12. DRAFT September 3, 1991 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. Direct the switching according to AEA switching procedures as agreed to by Chugach and the Authority. These agreed switching procedures shall be reduced to writing and set out in an Exhibit C to this agreement. Operate Bradley Lake in accordance with the Operating Directive approved by the BPMC consistent with §4 of this Agreement. DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 14 DRAFT September 3, 1991 EXHIBIT B - ADDITIONAL DUTIES (This exhibit is reserved for future duties to be added by AEA or PMC in accordance with Section 4(a) (ii) of this agreement) DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 15 DRAFT September 3, 1991 EXHIBIT C - SWITCHING PROCEDURES 1: \BRADLEY4 .CEA DISPATCH AGREEMENT FOR BRADLEY LAKE ENERGY PAGE 16 INDEX OF SECTIONS Section Draft Page 1 Recitals 2 2 Nature of Agreement 2 3 Term of Agreement 3 4 Duties of Dispatcher 3 5 Cost Reimbursement and Related Matters 5 6 Consultation and Dispute Resolution 7 7 Miscellaneous Provisions 7 8 Definitions 10 Exhibit A Dispatcher Duties 13 ExhibitB Additional Duties 15 ExhibitC Transmission System Dispatch and Clearance 16 Procedures TRANSMISSION SYSTEM DISPATCHING AND CLEARANCE PROCEDURES POWER DISPATCH SWITCHING AND CLEARANCE PROCEDURES I. Writing of switching orders and performance of switching. 1T1614(1) The Power Control Center shall be the source of authority for all switching on the Chugach System. The Manager of Power Control may delegate authority to qualified persons to issue switching orders and perform switching operations on their own authority. This authority is delegated to the Power Dispatchers in order that they may perform their assigned duties and responsibilities. This section is not to be interpreted so as to restrict any qualified personnel from performing switching to de-energize lines or equipment; where in his or her best judgement, life, limb, or property are in danger. In emergencies qualified field personnel may immediately de-energize circuits if requested by a Fire Department, Law Enforcement Officer, or other elected or appointed public officials and perform such switching that, in his/her opinion, is required. At that time, the Power Dispatcher shall be notified to verify that all possible sources of feed have been removed. The circuits shall not be re-energized until information is received that the emergency is over and the Power Dispatcher is notified. If such switching has been requested by a public official, the 1T1614(2) name, address and official position of the person requesting such switching shall be given to the Power Dispatcher by the individual performing switching, in writing as soon as is practical. All switching orders shall be written by the Power Dispatcher. All switching orders should be reviewed either by the Manager of Power Control, the Power Control Assistant or another Power Dispatcher. Switching orders shall be clear and concise. Each step shall begin on a new line. Each switch shall be designated by its assigned dispatching number, approximate location and type. Switching orders shall be written such that when equipment or lines are to be disconnected from any source of electric energy for the protection of personnel, the switches; circuit breakers; or other devices designated and designed for operation under the load involved at the sectionalizing point, shall be opened or disconnected first. In the direction and performance of switching, the following procedures and conventions shall be followed: a. The switchperson shall review and make sure he understands the switching order before starting the switching. b. The switchperson shall perform all steps in the same sequence as given in the switching order unless changes are expressly approved by the Power Dispatcher. IT1614(3) The switchperson should carry a copy of the switching order at all times and shall check off each step as completed. The switchperson shall have access to a CEA radio at all times to facilitate contact with the Power Dispatcher. If, while executing a switching order, the switchperson has reason to believe that any further switching would be improper, he shall, AT THAT POINT report to the Power Dispatcher. If, when executing a switching order, a switch is found to be in a position other than that specified in the order, no further switching shall be completed until the Power Dispatcher approves continuation of the switching order. Each person receiving an oral message concerning the switching of lines and equipment shall immediately repeat it back to the sender and obtain the identity of the sender. Each person sending such an oral message shall require it to be repeated back by the receiver and secure the latter's identity. When it is necessary to pen a switch (air break, gas, oil, or vacuum type; including pad mounted switch cabinets) rated at 750 volts or more, the following procedure shall be requested by the Power Dispatcher and Performed by the switchperson. Upon completion, the switchperson shall give the Power Dispatcher 1T1614(4) verbal confirmation that each appropriate step has been performed. I Open the switch, identified by number and type (and location, if appropriate). ee Check all three blades open (or any combination of blades required for single pole switching-specify each blade by phase). 3: Lock the switch in the open position (if appropriate). When it is necessary to close a switch of the type referred to in section 5-G, above, the following procedure shall be requested by the Power Dispatcher and performed by the switchperson. Upon completion, the switchperson shall give the Power Dispatcher verbal confirmation that each appropriate step has been performed. 1: Close the switch, identified by number and type (and location, if appropriate). 2. Check all three blades closed (or any combination of blades required for single pole switching-specify each blade by phase). 3: Lock the switch in the closed position (if appropriate). 1T1614(5) When it is necessary to open a power circuit breaker the following procedure shall be requested by the Power Dispatcher and performed by the switchperson. Upon completion, the switchperson shall give the Power Dispatcher verbal confirmation that each appropriate step has been performed. i Open the power circuit breaker identified by number and station name. 2s Check power circuit breaker semaphore to verify that it indicates the breaker to be in the open position. When it is necessary to close a power circuit breaker, the following procedure shall be requested by the Power Dispatcher and performed by the switchperson. Upon completion, the switchperson shall give the Power Dispatcher verbal confirmation that each appropriate step has been performed. 1. Close the power circuit breaker identified by number and station name. 2: Check power circuit breaker samaphore to verify that it indicates the breaker to be in the closed position. 11; Clearances, General IT1614(6) 3. Where possible, check indicator lights, breaker amps and breaker latch arm to verify that the breaker is in fact in the closed position. When it is necessary to open a load break cutout or connector the following procedure shall be requested by the Power Dispatcher and performed by the switchperson. Upon completion, the switchperson shall give the Power Dispatcher verbal confirmation that each appropriate step has been performed. L Open the load break cutout/connector identified by pole, transformer or junction box number, phase(s) and cable tag description (if appropriate). When it is necessary to close a load break cutout or connector the following procedure shall be requested by the Power Dispatcher and performed by the switchperson. Upon completion, the switchperson shall give the Power Dispatcher verbal confirmation that each appropriate step has been performed. 1. Close the load break cutout/connector identified by pole, transformer or junction box number, phase(s) and cable tag description (if appropriate). 1T1614(7) The Power Control Center shall be the source of authority for all electrical red clearances on the Chugach system. The Manager of Power Control may delegate authority to qualified persons to issue red clearances on their own authority. This authority is delegated to the Power Dispatchers in order that they may perform their assigned duties and responsibilities. a. The permission of the Power Dispatcher is required before anyone may work on or in close proximity to electrical parts of the Chugach system, rated 750 volts or more. b. The Power Dispatcher shall be notified as soon as such work ceases. Cc. This section is not to be interpreted so as to restrict any qualified personnel from making repairs on or about equipment or lines on the Chugach system; where in his or her best judgement, life, limb, or property are in danger and communications with the Power Dispatcher are made difficult by storms or other causes and the qualified person can clear the trouble promptly with available help in compliance with the remaining rules. All workmen shall be protected by a red clearance whenever they touch or work within the minimum work distance (as specified by the National Electrical Safety Code) of electrical parts (power circuits, rated 750 volts or more) which may be energized by closing an isolating device. This section is not to be construed so as to prevent the performance of “hotwork" on energized lines and equipment, without a red clearance, so long as such work is performed in IT1614(8) accordance with the National Electrical Safety Code and the Power Dispatcher has been notified that such work will be in progress. a. The Red Clearance is a formal agreement between the Power Dispatcher and the individual in charge that the former will not authorize the re- energizing of specific lines or equipment from the power system without the latter's release of his clearance. With the issuance of a red clearance the Power Dispatcher give the assurance that: a. The equipment or lines are separated from the power system with isolating devices. b. All isolating devices have been tagged properly and wherever possible locked in the open position. ics Available ground switches have been closed unless the holder of the clearance requests that they be left open. The Power Dispatcher will check with all other personnel holding clearances on the facility for their concurrence before opening grounding switches. d. Where possible, all remotely operated devices have been placed in local control. es None of the isolating devices will be ordered closed until after the red clearance has been released. 4.B. In the construction of new facilities for which no isolating devices are in position to provide connection to either lines or buses of the power system, no red clearance shall be required or issued for men to work o building the facilities. It shall be the responsibility of the Chugach Inspector to see that no isolating devices (removable links or jumpers) are placed in position prematurely and if found to be so positioned to see that they are removed immediately. This section is not to be construed to prevent the energization of new construction in small blocks, as the construction is completed, provided such energization is performed in accordance with the remaining rules. In the event that one or more of the clearance points defining a Red clearance are to be retired or relocated, during construction, the existing clearance shall be released and all tags removed prior to retirement. In the event that a clearance is still required a new Red Clearance shall be issued and defined by the appropriate remaining clearance points. A red clearance shall be required regardless of the stage of the construction if the isolating device is a switch which could energize electrical parts at 750 volts and above. Ill. Application Procedures for Receiving and Releasing Clearances IT1614(9) lication for Red Cl a. Application for red clearances should be made to the Power Dispatcher 72 hours in advance of the time set for work to begin and shall be made IT1614(10) a minimum of 24 hours in advance of the time set for work to begin. Clearances without application will be issued only on an emergency basis. clearances for outages involving customer equipment shall be made as far in advance as possible. The following information is required for clearance applications: the name of the person requesting the application; the name of the person who will be receiving the clearance; the exact piece of apparatus or section of line to be cleared specified by required clearance point; the time and date desired for the clearance to be issued; the anticipated length of time needed; the type of clearance sought; and the reason for the clearance. The Power Dispatcher will arrange to have the requested equipment or line switched out of service. All sources of electrical energy under the control of the Power Dispatcher shall be disconnected and checked for a visible open on all phases. All isolating devices shall be racked out or rendered inoperable and tagged with the Chugach red clearance tag clearly indicating that persons are at work. If isolating devices that are controlled automatically or remotely, can be rendered inoperable, they shall be rendered inoperable and tagged at the switch location. If it is impractical to render such isolating devices inoperable, then these remotely controlled devices shall be tagged at all points of control. The Power Dispatcher shall update and tag the dispatch board to indicate the status of all isolating devices and red clearance tags. 2: 1T1614(11) Receiving a Red Clearance Each person receiving an oral message concerning the switching of lines and equipment or issuance and receipt of clearances shall immediately repeat it back to the sender and obtain the identity of the sender. Each person sending such an oral message shall require it to be repeated back by the receiver and secure the latter's identity. At the time specified in the request for clearance, the individual in charge shall contact the Power Dispatcher and inform him that he is ready to receive his clearance. The Power Dispatcher shall grant the individual in charge the red clearance, specifying the exact limits of the clearance. The Power Dispatcher shall give the individual a red clearance number and grant permission to test the line for potential and proceed with the installation of working grounds, as appropriate. Equipment or lines covered under a red clearance shall not be energized for testing purposes without the permission of the Power Dispatcher and may be energized only under the supervision of the person holding the red clearance. No individual shall go to work on a piece of equipment or line for which a clearance has been requested until the clearance has been granted by the Power Dispatcher. 3. 1T1614(12) The individual in charge who has a clearance shall explain its extent and limits to all persons who are expected to test or work on any equipment included in that clearance. The person holding the clearance is responsible for the safety of all personnel working within that clearance. Each additional individual in charge desiring the same equipment or lines to be de-energized shall request and obtain his own numbered Red Clearance. Releasing or Transferring a Red Clearance The individual in charge upon completion of the work and after assuring that all men and equipment are in the clear should remove all working grounds and shall report to the Power Dispatcher that he is releasing his clearance, specified by number, and that all red clearance tags in his name may be removed. In the event that the individual in charge releases his red clearance without removing his working grounds he shall identify to the Power Dispatcher each location at which the line or equipment is grounded. A clearance shall not be transferred between parties, except as provided for in II-3, C. In the event that the individual in charge who received the clearance must transfer his authority to another person; the existing clearance shall be released by its holder and all tags removed. A new 1T1614(13) clearance and clearance number shall be issued to the new individual in charge in accordance with the safety procedures outlined in this manual. c. In the event that the individual holding the clearance is unavailable, for an unacceptable period of time and all practical means of contacting the individual have been exhausted, then his immediate supervisor shall assume full responsibility for the clearance including its release. All such instances shall be fully documented by both the Power Dispatcher and the Supervisor involved. 1 nvolvin rei iliti Clearance on Chugach Lines or Equipment for Employees of Other Utilities. Preliminary arrangements shall be made by the power dispatcher of the foreign utility with the Chugach power dispatcher. The Chugach power dispatcher shall ascertain the nature of the work and the name of the person who will be in charge. The Chugach power dispatcher will issue clearance to the power dispatcher of the foreign utility in the same manner and in accordance with the same rules and regulations that govern clearance to Chugach employees. If the Chugach power dispatcher deems it necessary, he shall arrange to have an authorized Chugach employee on location at this time to clarify the limits of the clearance to the person in charge of the job. IT1614(14) Clearance on Inter-Utility Times for Chugach Employees Preliminary arrangements shall be made by the Chugach power dispatcher with the power dispatcher with the power dispatcher of the foreign utility. The terminal of the foreign end shall be cleared and tagged for the Chugach power dispatcher who will then receive clearance from the power dispatcher of the foreign utility on the terminal end. The Chugach terminal shall be cleared and tagged for the Chugach employee. The Chugach power dispatcher may not issue a clearance in the regular manner to the Chugach employee. Clearance on Inter-Utility Ties for the Foreign Utility Employees. Preliminary arrangements shall be made by the power dispatcher of the foreign utility with the Chugach power dispatcher. The Chugach power dispatcher shall ascertain the nature of the work. The Chugach terminal shall be cleared and tagged to the power dispatcher of the foreign utility. The Chugach power dispatcher will issue clearance to the power dispatcher of the foreign utility on the Chugach terminal of the inter-utility tie. RELEASING CLEARANCES IT1614(15) No further work. When the employee is ready to release his clearance, he shall inform his crew that he is releasing his clearance and that no further work is to be done under that clearance. He shall release his clearance to the power dispatcher by description of the lines or equipment and by the clearance number. REPORTING MODIFICATIONS He shall report changes or modifications affecting the operation of any part of the system and any abnormal conditions that may restrict or modify the use of the equipment. WORKING GROUNDS If no abnormal condition exists, he shall report that all working grounds have been removed and that as far as he is concerned the line or equipment is ready to be energized. REMOVING TAGS No tags shall be removed and no lines or equipment energized until the clearance has been released to the power dispatcher. As soon as possible after the clearance is released, the power dispatcher shall order the removal of all tags associated with that clearance. RECORDING MODIFICATIONS The power dispatcher shall make the required correction on the display panel and maps of all modifications reported. IV. Hot Line Orders - General I 1T1614(16) The Power Control Center shall be the source of authority for all hot line orders on the Chugach system. The Manager of Power Control may delegate authority to qualified persons to issue hot line orders on their own authority. This authority is delegated to the Power Dispatchers in order that they may perform their assigned duties and responsibilities. a. The permission of the Power Dispatcher is required before anyone may work on or in close proximity to electrical parts of the Chugach system, rated at 750 volts or above. b. Once a hot line order has been requested or deemed required for a specific line or piece of equipment no work shall be performed in close proximity to it until the hot line order has been issued to the individual in charge. C5 The Power Dispatcher shall be notified as soon as such work ceases. d. This section is not to be interpreted so as to restrict any qualified personnel from making repairs on or about equipment or lines on the Chugach system; where in his or her best judgement, life, limb or tes property are in danger and communications with the Power Dispatcher are made difficult by storms or other causes and the qualified person can clear the trouble promptly with available help in compliance with the remaining rules. The requirement for a hot line order shall be at the discretion of either the individual in charge of performing the work or the Power Dispatcher. The hot line order is a formal agreement between the Power Dispatcher and the individual in charge that the former will not authorize the re- energizing of specific lines or equipment from the power system without first verifying that the latter's men and equipment are all in the clear. With the issuance of a hot line order the Power Dispatcher gives assurance that all isolating devices, connecting the specified lines or equipment to the power system, and having automatic reclosing capability have been bypassed or placed in the non-reclose position and properly tagged with a hot line tag clearly indicating that the circuit is not to be reclosed without permission of the Power Dispatcher (this is to include in-line pole mounted reclosing devices as well as station reclosing devices). V. Application Procedures for Receiving and Releasing Clearances 1T1614(17) lication for Hot Line Ord a. Application for hot line orders shall be by 1400 hours of the day preceding the day the work is scheduled to begin. Hot line orders without application will be issued on an emergency basis only. b. The following information is required for hot line order applications: the name of the person requesting the application; the name of the person who will be receiving the hot line order; the exact line or piece(s) of equipment which are to be covered by the hot line order; the time and date desired for the hot line order; and the reason for the hot line order. Ch The Power Dispatcher shall arrange to have all in-line automatic reclose devices bypassed or placed in the non-reclose position and at all points of control tagged with a Chugach hot line tag clearly indicating that hot line work is in progress and the circuit is not to be reclosed without the permission of the Power Dispatcher. The Power Dispatcher shall update and tag the dispatch board to indicate the non-reclose/bypass status of all automatically reclosing devices. d. In the event that a hot line order will be in place for an extended period of time, the appropriate relay setting adjustments shall be made to provide standard coordination with other protective devices on the circuit. 2. Receiving a Hot Line Order a. Each person receiving an oral message concerning the switching of lines and equipment or issuance and receipt of hot line orders shall 1T1614(18) IT1614(19) immediately repeat it back to the sender and obtain the identity of the sender. Each person sending such an oral message shall require it to be repeated back by the receiver and secure the latter's identity. At the time specified in the request for a hot line order, the individual in charge shall contact the Power Dispatcher and inform him that he is ready to receive his hot line order. The Power Dispatcher shall grant the individual in charge the hot line order specifying which isolating devices and circuits that have been placed in the non-reclose/bypassed status. No individual shall perform work, which has been deemed to require a hot line work order, until such an order has been granted by the Power Dispatcher. Each additional individual in charge desiring the same equipment or lines to placed under a hot line order shall request and obtain his own numbered hot line order. Releasing or Transferring a Hot Line Ord The individual in charge, upon completion of the work and after assuring that all men and equipment are in the clear and shall report to the Power Dispatcher that he is releasing his hot line order, specified by number, and that all hot line tags in his name may be removed. 1T1614(20) A hot line order shall not be transferred between parties except as provided for in V-3, C. In the event that the individual in charge who received the hot line order must transfer his authority to another person; the existing hot line order shall be released by its holder, all tags removed. A new hot ine order and number shall be issued to the new individual in charge in accordance with the safety procedures outlined in this manual. In the event that the individual holding the hot line order is unavailable, for an unacceptable period of time and all practical means of contacting the individual have been exhausted, then his immediate supervisor shall assume full responsibility for the hot line order including its release. All such instances shall be fully documented by both the Power Dispatcher and the Supervisor involved.