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BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE
March 26, 1992
CALL TO ORDER
Chairman Kelly called the Bradley Lake Hydroelectric Project Management
Committee to order at 10:00 a.m. in the Training Room at Chugach Electric
Association in Anchorage, Alaska to conduct the business of the Committee per
the agenda and the public notice.
ROLL CALL
Alaska Energy Authority
Charlie Bussell, Designated Representative
Chugach Electric Association
David L. Highers, Designated Representative
Golden Valley Electric Association
Mike Kelly, Designated Representative and Chairman
City of Seward .
Dave Calvert, Alternate Representative
Homer Electric Association
Norman L. Story, Designated Representative
Matanuska Electric Association
Ken Ritchey, Designated Representative
Municipal Light & Power
Hank Nikkels, Alternate Representative
Others Present:
Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerrit
Tim McConnell, Municipal Light & Power
Dave Fair, Homer Electric Association
David Burlingame, Chugach Electric Association
John Cooley, Chugach Electric Association
Gene Bjornstad, Chugach Electric Association
BPMC Meeting Minutes
March 26, 1992
Page 2 of 7
Bradley Evans, Chugach Electric Association
Joe Griffith, Chugach Electric Association
Bob Hufman, AEG&T
Bob Price, Municipal Light & Power
Pete Fraser, Municipal Light & Power
Allan Yost, Rural Electrification Administration
Stanley E. Sieczkowski, Alaska Energy Authority
David R. Eberle, Alaska Energy Authority
Penny Haldane, Alaska Energy Authority
3. PUBLIC COMMENT
There being no public comment, the meeting continued to the next agenda item.
4. AGENDA COMMENTS
The meeting agenda was approved with the following additions:
13C. BPMC FISCAL YEAR 1993 BUDGET APPROVAL
13D. ALLOCATION AND SCHEDULING SCHEDULE "A" APPROVAL
13E. AUTHORIZATION FOR A TCS REPRESENTATIVE TO
ACCOMPANY TUNNEL INSPECTORS
13F. APPROVAL OF BRADLEY LAKE TESTING CHARGES
55 APPROVAL OF MINUTES
The minutes of the February 28, 1992 meeting were amended to show Hank
Nikkels as the alternate representative for Municipal Light & Power. The
minutes were approved as amended.
6. TECHNICAL COORDINATION SUBCOMMITTEE REPORT
Dave Burlingame reported that the Technical Coordination Subcommittee (TCS)
had not met. All utilities have received the PTI studies for the expanded
operation of Bradley Lake. This information will be discussed at an upcoming
meeting. Mr. Burlingame addressed the recent trip at 90 megawatts. Some
permitting problems with the Dave's Creek SVCS site have been encountered,
however the completion date should not be affected.
BPMC Meeting Minutes
March 26, 1992
Page 3 of 7
Tim McConnell asked for specifics on the trip. Mr. Burlingame stated that a
high tide contributed to the trip and a report will be forthcoming. Brad Evans
related that the immediate feedback on the trip occurred verbally between
control centers. Norm Story said they had enough information to issue a press
release within the hour.
Intertie reporting forms are filed by the tripping utility. Chairman Kelly would
like the appropriate subcommittee to file a written report regarding all forced
outages at Bradley.
Te INSURANCE SUBCOMMITTEE REPORT
The Insurance Subcommittee had nothing to report.
8. BUDGET SUBCOMMITTEE REPORT
Budget Subcommittee Chairman Ken Ritchey passed around a narrative
(Attachment A) as well as a copy of the proposed budget (Attachments B and
C). Mr. Ritchey explained the budget proposal in terms of operator's costs and
owner's costs. The budget subcommittee recommended approval. However,
AEA did not concur with the budget being recommended. The primary budget
dispute was related to AEA overhead costs.
After discussion Chairman Keily asked Ron Saxton to give an opinion as to
where the budget process could go from this point.
Mr. Saxton related that the Power Sales Agreement and the Bond Resolution
require an approved budget 90 days prior to the beginning of the fiscal year
(April 2, 1992). If the BPMC fails to adopt a budget prior to April 2, 1992
then the Authority is able to unilaterally adopt a budget. The agreement then
provides that the Authority budget is still subject to all the preservation of rights
to dispute the contents.
The first step is to ensure that there is not a breach of the bond resolution. In
order to avoid a technical default the BPMC needs to be sure that some budget
is in place by April 2, 1992. The options would include some compromise
interim budget or the unilateral budget from the Authority.
Under the Power Sales Agreement, these kinds of deadlocks are subject to
dispute resolution procedures adopted by the BPMC. The procedures in place
say that alternative forms of dispute resolution can be sought if three utilities
and the Authority agree. This option is elective. The other alternative is to go
to court. No payment obligations will be affected until July 1.
BPMC Meeting Minutes =
March 26, 1992
Page 4 of 7
At this time Chairman Kelly asked Charlie Bussell what position the Authority
would take. Mr. Bussell passed out the Authority's proposed budget
(Attachment D). Stan Sieczkowski stated that the only difference between the
two budgets is on page 2 line 920 (b).
Chairman Kelly adjourned the meeting for a 15 minute caucus among the utility
managers.
The BPMC reconvened at approximately 11:45 a.m. With the understanding
that negotiations could continue at any time and that a budget would be adopted
by the Authority prior to April 2, 1992, Chairman Kelly moved on to the next
item. Approval of the budget would be formally addressed under New
Business.
9. AGREEMENT SUBCOMMITTEE REPORT
Mr. Sieczkowski summarized the status of operating agreements:
Allocation and Scheduling: Exhibit A will be addressed under New
Business.
Dispatch: Finalized and signed copies have been
. distributed.
Transmission Facility Maintenance: On agenda at meeting scheduled with HEA
(Between AEA and AEG&) March 27, 1992.
Facilities Interconnected Dispatch: On agenda at meeting scheduled with HEA
(Between AEA and HEA) March 27, 1992.
Communications MOU: Estimated completion date of
April 10, 1992.
SVCS Draft Agreement: CEA comments expected soon.
Dave's Creek Substation: Signed March 13, 1992
(Right of Entry)
Soldotna Substation: On agenda at meeting scheduled with HEA
(Right of Entry) March 27, 1992.
BPMC Meeting Minutes
March 26, 1992
Page 5 of 7
10.
11.
OPERATION & DISPATCH SUBCOMMITTEE REPORT
Stan Sieczkowski reported that the Operation and Dispatch Subcommittee met
on March 4, 1992. Highlights of this meeting were given and a copy of the
draft meeting minutes were distributed as part of the March 26, 1992 pre-
meeting packet.
The SCADA communications problem is being investigated and is expected to
be resolved. A letter has been sent to the utilities outlining the 231,000
megawatt-hours delivered to the utilities as of February 1992. The forecast for
next year is 403,000 megawatt-hours, an increase from 383,000 megawatt-
hours.
REVIEW OF PROJECT STATUS
Dave Eberle reported that dewatering of the tunnel had begun the day before
(March 25, 1992.) Currently the reservoir is at elevation 830, down about 300
feet. It was noted that higher than anticipated in-flows may slow the dewatering
process. The tunnel should be accessible by March 31, 1992 at which time a
walk through the penstock will be made to check for debris. Inspection is
scheduled for April 3 - 4, 1992. All parties have been notified so they can be
present and three different insurance carriers have been notified. Equipment has
been mobilized for small repairs but other decisions will be required if major
repairs are needed. P
OLD BUSINESS
A. ADOPTION OF THE BRADLEY LAKE DISPATCHER GUIDELINES
SUMMARY
The TCS has not met and therefore adoption of the Bradley Lake
Dispatcher Guidelines Summary will be held over till the next BPMC
meeting.
B. SPINNING RESERVE/UNDERFREQUENCY LOAD SHEDDING -
UPDATE
John Cooley reported that the ASCC Reliability Criteria Committee is
meeting March 31, 1992 to continue discussing the Spinning
Reserves/Underfrequency Load Shedding. The load shed study is
progressing and results are expected by the May Intertie Operating
Committee meeting.
BPMC Meeting Minutes
March 26, 1992
Page 6 of 7
HEA ECONOMY SALES TO GVEA - UPDATE
Chairman Kelly stated that a meeting had occurred regarding the HEA
Bradley Economy Sales to GVEA, however more work is required on
this item.
13. NEW BUSINESS
A. APPROVAL OF COMMITTEE EXPENSES
Ron Saxton distributed a handout on Committee expenses (Attachment
E). All expenses had been approved for payment by the Authority. Mr.
Ritchey motioned nd Mr. he BPM'
reimbursement of th tion 31 co: The motion was unanimousl
approved by roll call vote.
LETTER TO LB&A IN SUPPORT OF MICROWAVE UPGRADE
Dave Eberle distributed a draft letter to LB&A in support of Microwave
Upgrade (Attachment F). The letter was changed to read telephone
carrier instead of telephone industry. ——
Mr. letter mmen . The motion
was aj ved without objection.
The letter was transferred to Chugach letterhead and signed at the
meeting.
BPMC FISCAL YEAR 1993 BUDGET APPROVAL
Ri moti: nded by Mr. S ve the BPMC
Chairman Kelly stated that he expected the Authority to adopt a budget
prior to the April 2, 1992 deadline and to notify the members of the
BPMC.
BPMC Meeting Minutes
March 26, 1992
Page 7 of 7
ALLOCATION AND SCHEDULING SCHEDULE "A" APPROVAL
Mr. Story motioned, seconded by Mr. Highers, approval of the
Allocation and Scheduling Exhibit "A". The motion was unanimously
approved by roll call vote.
AUTHORIZATION FOR A TCS REPRESENTATIVE TO
ACCOMPANY TUNNEL INSPECTORS
Mr. Highers motioned, seconded by Mr. Ritchey, that the Technical
rdinating Subcommittee appoint a representativ 1m) the
tunnel inspectors. The motion was approved without objection.
APPROVAL OF BRADLEY LAKE TESTING CHARGES
Stan Sieczkowski reported that the Operation and Dispatch
Subcommittee has reviewed and recommends approval of the Bradley
Lake project start-up test charges (Attachment G). Mr. Highers
motion nd Mr the BPMC approve reimbursement of
ion w: i i Vv roll call
vote.
14. COMMUNICATIONS
A. SCHEDULE NEXT MEETING
April 28, 1992
10:00 a.m.
CEA Training Room
15. ADJOURNMENT
There being no further business, the co
Attest:
Charlie Bussell, Secretary