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HomeMy WebLinkAboutBPMC Meeting - April 6, 1989 1 FILE Copy / v 6 April 6, 1989 1. CALL TO ORDER Chairman Kelly called the Bradley Lake Project Management Committee to order at 10:40 a.m. in the Conference Room of the Alaska Power Authority Juneau office to conduct the business of the Committee per the agenda and the public notice. 2. ROLL CALL The roll call was taken and a quorun. was established. In attendance were the following: Designated Representative __Designated Alternate _Representing _ Robert E. LeResche Brent Petrie Alaska Power Authority James F. Palin Matanuska Electric Association, Inc. David L. Highers Chugach Electric Association, Inc. Michael P. Kelly Golden Valley Electric Association, Inc. Thomas R. Stahr Municipal Light and Power In accordance with the agreement hy the utility managers (i.e., PMC Representatives) that the utility alternates not attend : this meeting, the utility alternates were not present. Representatives Absent Alternates Absent ____Representing — Everett Paul Diener Bob Peirson City of Seward B. Kent Wick* S.C. Mathews Homer Electric Association, Inc. Myles C. Yerkes Matanuska Electric Association, Inc. Tom Lovas Chugach Electric Association, Inc. Bob Hansen Golden Valley Electric Association, Inc. John Cooley Municipal Light and Power Others Present ee Representing Kurt Dzinich Senate Advisory Council Larry Markly Chugach Electric Association, Inc. Dave Hutchins ARECA Ron Saxton Golden Valley Electric Association, Inc Julie Becker Alaska Power Authority *Mr. Wick joined the PMC meetii g st 11:00 a.m. 3. PUBLIC COMMENT There being no public comment, Chairman Kelly proceeded to agenda item 4. te Bradley PMC (BRADAPR6) Page 2 of S April 6, 1989 Meeting Minutes 4. MODIFICATION OF AGENDA REA status report was added under agenda item 14., Old Business. 5. APPROVAL OF MINUTES March 3, 1989 cnet, The motion nae by sottsenarioa. 6. BOND FINANCE TEAM REPORT Mr. LeResche reported that the Request for Proposals (RFP) for underwriting co-manager was distributed two weeks ago. Mr. LeResche noted that all of the members will have the opportunity to review the replies to the RFP and participate in the interviews with the firms. Mr. LeResche said that proposals for Financial Advisor for future projects have been received. R.W. Beck has all of the information required from the members to complete their Consulting Engineer’s Report and the Committee is in a position to be able to sell bonds in August or September of 1989. 7. TECHNICAL COORDINATING SUBCOMMITTEE REPORT Mr. Wick joined the meeting at this time. The Committee reviewed the Bradley Lake Project Technical Coordinating Subcommittee Report for Project Management Committee Meeting of April 6, 1989 Juneau, Alaska, which outlined significant items and actions of the TCS meetings of March 10, 1989 and March 30, 1989. ak artsficetactitieraateelaaniycones. The m rancie veaneal by eee 8. INSURANCE SUBCOMMITTEE REPORT The Committee reviewed the April 3, 1989 memorandum from Mr. Saxton to the Bradley PMC relative to the Insurance Subcommittee. Mr. Saxton noted that there is a strong sense from Messrs. Petrie and Hansen that the PMC give strong consideration to integrating Bradley Lake insurance with that of the Anchorage- Fairbanks Intertie project. Mr. Saxton noted that the individual Subcommittee members had been assigned to gather information on probable loss analysis, bond requirements, alternatives available for funding an insurance fund and related matters. The next meeting of the Insurance Subcommittee was scheduled for April 24, 1989. STE eee eat The rantices passed by seaicination, te Bradley PMC (BRADAPR6) Page 3 of 5 April 6, 1989 Meeting Minutes 9. BUDGET SUBCOMMITTEE REPORT The Committee reviewed the April 3, 1989 memorandum from Mr. Saxton to the Bradley PMC regarding Budget Subcommittee. Mr. Saxton noted that the Budget Subcommittee has scheduled their next meeting in order to meet with the Bradley financial advisors (i.e., Messrs. Seagraves and Grimes). It was noted that the Budget Subcommittee needs to complete their tasks by September of 1989 in order to allow timely consideration of bond sale options. 10. TAX SUBCOMMITTEE REPORT The Committee reviewed the April 3, 1989 memorandum from Mr. Saxton to the Bradley PMC relative to the Tax Issue. Mr. Saxton reported that the tax status of the Four Dam Pool remains unresolved. Mr. Saxton noted that bond financing may be the answer to the tax status issue for the Bradley PMC; however, the tax status of funds not acquired by the bond resolution (i.e., operating funds) remains unclear. M eResche ronded b >, Mr Sestos’s Apel, 1000 seeemaretictera, The mela — i achat, 11. FERC LICENSURE REPORT The Committee reviewed the April 3, 1989 memorandum from Messrs. Saxton and Petrie to the Bradley PMC regarding the FERC Hydroelectric Licensing Fees. Mr. Saxton reported that the Four Dam Pool appeal of the FERC annual fees will probably be acted on within the next year. Two exemptions from the payment of annual fees have been discovered, a Texas power group and Puerto Rican group; moreover, there is no record of people seeking exemptions aside from these two groups. It was noted that Congress now funds FERC solely from program receipts and that annual fees account for 30% of the FERC’s revenue. Mr. Saxton noted that while the timeframe for the Bradley PMC requesting an exemption from annual fees is when the first bill is received from the FERC after project operation, it is timely now for the municipalities to consider their accounting practices, as the FERC requested five years of records from the Four Dam Pool members. Mr. Saxton noted that the order of magnitude of annual FERC fees is $100,000 - $200,000 per year through license termination. 12. OPERATING AND DISPATCH AGREEMENT SUBCOMMITTEE REPORT The Committee reviewed the April 5, 1989 memorandum from Donald L. Shira, Chairman, Operating and Dispatch Agreement Subcommittee to the Bredley PMC, Subject, Summary of Operations and Dispatch Agreement Subcommittee Meetings March 14, 1989 and April 5, 1989. The report outlined the following 8 agreements and approval dates by the PMC: Bradley PMC (BRADAPR6) Page 4 of 5 April 6, 1989 Meeting Minutes Completion Dates : Agreement he a LE 10/89 Soldotna #1 Dispatch Agreement between CEA and AEG&T 6/90 Maintenance Agreement between Power Authority and Maintenance Contractor 6/90 Participants Allocation and Scheduling Agreement 1/91 Joint Operations Agreement between CEA and HEA 6/91 Dispatch Agreement between Power Authority and CEA 6/91 Transmission Facilities Maintenance Agreement between Power Authority and HEA 6/91 Substation Maintenance Agreement between Power Authority and HEA 9/91 Communications Equipment Agreement between Power Authority and Division of Telecommunications The report by the Operating and Dispatch Agreement Subcommittee also provided recommended solutions (i.e., "Remarks") for each item in Mr. Yerkes’ October 31, 1989 memorandum to Messrs. Palin and Ritchey regarding outstanding AEG&T/HEA issues and concerns. 13. REVIEW OF PROJECT STATUS The Committee reviewed the Apni 5, 1989 Bradley Lake Project Status report. Mr. LeResche noted that Enserch set a world record with the Tunnel Boring Machine (TBM) of 270 feet in one day, compared to the previous record of 212 feet in one day. Mr. LeResche said that the first major fault has not been reached by the TBM. The transmission line clearing has been completed. The turbine parts have been secured from Hyundai and the casting of the turbine runners is on schedule. The turbine parts need to be on-site by the end of 1989 in order to maintain the schedule. The low bidder to the transmission line construction work has been disqualified and three protests have been lodged. Mr. LeResche said that award of this contract within the next month is optimistic. This item is within schedule and is not on the critical path for several additional months. The award is being withheld pending resolution of the protests and the schedule can be maintained even if the transmission line construction is rebid. 14. OLD BUSINESS REA REPORT Mr. Saxton said that REA is taking longer to review the documents than they had anticipated. REA has said that they will not make a final decision until such time as the Soldotna-Fritz Creek transmission line delay is resolved. Bradley PMC (BRADAPR6) Page 5 of 5 April 6, 1989 Meeting Minutes NEW BUSINESS Schedule Next Meeting It was determined that the next meeting would be called by Chairman Kelly; however, the following tentative date, location and time was agreed to: Date May 4, 1989 Location Juneau, AK Time 10:30 a.m. 16. COMMUNICATIONS There being no further communications or business, the motion was made to adjourn. 17. ADJOURNMENT Mr. Highers motioned, seconded by Mr. Palin, that the Committee adjourn. The Committee adjourned at 11:30 a.m. by acclamation. Chairman Kelly ATTEST: 6 Li buch Secretary Approved at PMC meeting held Ta ft, 1989.