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HomeMy WebLinkAboutBPMC Meeting - February 28, 1992 2RECORD Copy FILE NO Alaska Energy Authority — 2!) ™~« /2e/ 92 MEMORANDUM TO: Bradley Lake Project Manage “eo fH, FROM: Charlie Bussell | Secretary, PMC DATE: February 21, 1992 SUBJECT: February 28 1992 Bradley Lake PMC Meeting Enclosed you will find a copy of the February 28, 1992 Agenda for the Bradley Lake Project Management Committee meeting. Please provide any comments to Chairman Kelly. The meeting place will be at Chugach Electric Association in the Training Room at 10:00 a.m. For your review is a copy of the draft meeting minutes of the January 13, 1992 meeting, which will be considered at the February 28, 1992. An executed copy of the October 25 1991, November 19, 1991 meeting minutes, Resolution 91-10 and the Allocation and Scheduling Procedures are enclosed for your records. DS/CB/ds 10. ri 12. 13; 14. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE February 28, 1992 Chugach Electric Association, Inc Training Room - 10:00 A.M. CALL TO ORDER 10:00 A.M. Kelly ROLL CALL PUBLIC COMMENT AGENDA COMMENTS APPROVAL OF MINUTES January 13, 1992 TECHNICAL COORDINATING SUBCOMMITTEE REPORT Burlingame INSURANCE SUBCOMMITTEE REPORT Petrie BUDGET SUBCOMMITTEE REPORT Ritchey OPERATION AND DISPATCH SUBCOMMITTEE REPORT Sieczkowski REVIEW OF PROJECT STATUS Eberle OLD BUSINESS A. Adoption of the Bradley Lake Dispatcher Guidelines Summary Burlingame B. Proposed Motion Regarding Risk/Benefit Analysis Stahr NEW BUSINESS A. Approval of Committee Expenses Saxton B. Increase Bradley Output Limit to 90 megawatts C. Modification of Bradley Minimum Operating Levels D. Spinning Reserves/Underfrequency Load Shedding - Update Lovas E. HEA Bradley Economy Sales to GVEA - Update COMMUNICATIONS A. Schedule Next Meeting ADJOURNMENT 91Q4/JD1991(1) DRAFT BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE January 13, 1992 i: CALL TO ORDER Chairman Kelly called the Bradley Lake Hydroelectric Project Management Committee to order at 10:30 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. 2. 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 - ABSENT Homer Electric Association Norman L. Story, Designated Representative Matanuska Electric Association Ken Ritchey, Designated Representative Municipal Light and Power Thomas Stahr, Designated Representative Others Present: Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerrit Robert Hufman, Utilities Consulting Services Bradley Evans, Chugach Electric Association, Inc. David Eberle, Alaska Energy Authority John Cooley, Chugach Electric Association, Inc. Dave Fair, Homer Electric Association Stanley E. Sieczkowski, Alaska Energy Authority Tim McConnell, Anchorage Municipal Light & Power Gene Bjornstad, Chugach Electric Association, Inc. David Burlingame, Chugach Electric Association, Inc. Penny Haldane, Alaska Energy Authority 92Q1\JD2344(1) Bradley Lake Project ~ mmittee Meeting Minutes January 13;,1992 Page 2 of 6 Don Edwards, Chugach Electric Association, Inc. Myles Yerkes, Alaska Electric Light & Power/Homer Electric Association Steve Haagenson, Golden Valley Electric Association, Inc. Marvin Riddle, Golden Valley Electric Association, Inc. Robert Hansen, Golden Valley Electric Association, Inc. Joe Griffith, Chugach Electric Association James D. Hall, Anchorage Municipal Light & Power PUBLIC COMMENT There was no public comment. AGENDA COMMENTS Hearing no objection, The agenda was approved with the following modifications: 12) B. Railbelt Spinning Reserve Philosophy 12. Cc. Synopsis of Manager's Meeting January 13, 1992. APPROVAL OF MINUTES Hearing no objection, the minutes from November 19, 1991 were approved with one correction to reflect Joe Griffith, Chugach, present at the meeting. TECHNICAL COORDINATING SUBCOMMITTEE REPORT Dave Burlingame reported that the Technical Coordinating Subcommittee had not met since the last BPMC meeting. INSURANCE SUBCOMMITTEE REPORT Ron Saxton reported for the Insurance Subcommittee. A market is available for additional insurance to protect the BPMC. However, this coverage cannot be purchased until September 1992 when the project will have operated for one year. An argument that the BPMC has already existed for longer than a year was not successful. Mr. Saxton and the Insurance Subcommittee advises that the BPMC purchase this insurance as soon as it is available. An immediate problem is not anticipated but the extra comfort level is worth the cost (the Four Dam Pool pays approximately $10,000 per year). If any utility has a specific concern they should contact Mr. Saxton. BUDGET SUBCOMMITTEE REPORT Ken Ritchey reported that the Budget Subcommittee met in December. The wheeling issue with HEA is being resolved. The first draft of the FY92 BPMC budget has been reviewed in detail. The only major issue is AEA's overhead cost. Back-up documentation has been requested from AEA. The budget must be approved by April 1, 1992. The Budget Subcommittee will meet later in January and present a proposed budget at the February 92Q1\JD2344(2) Bradley Lake Progen aerate Meeting Minutes @ January 13, 1992 Page 3 of 6 10. BPMC meeting. Final approval is anticipated at the March BPMC meeting. Chairman Kelly recommends that specific input for the budget should be made directly to Ken. OPERATION AND DISPATCH SUBCOMMITTEE REPORT Stan Sieczkowski reported that the Operation and Dispatch Subcommittee met on December 17, 1991. Reservoir modeling was discussed with current projections showing a surplus of water. As a result, All participants are reviewing their allocations. AEA will organize a meeting with the weather service so utilities can understand what goes into this program. On another matter, a letter will be sent to the SCADA committee so Bradley communication problems can be corrected. At the December 17 meeting the O & D Subcommittee adopted the 90 megawatt cap based upon the load acceptance analysis. It was also clarified that station service for Bradley would come directly from the project when on line and would be supplied by Chugach when off line. The next Operations and Dispatch meeting is scheduled for January 28, 10:00 a.m. at the Alaska Energy Authority Conference Room. Mr. Kelly asked Stan for an update on the work of the Agreements Subcommittee. Mr. Sieczkowski reported that the "Dispatch" Agreement was forwarded to Chugach for signature. The Allocation and Scheduling Agreement Exhibits C and D are being updated. The Maintenance Agreements with Homer and the Right of Way Agreements are being worked on by Mr. Sieczkowski. The Static Var Agreement is still in Committee. Dave Highers reported that Chugach has approved the "Dispatch" Agreement. It is anticipated that within 30 days, the Homer Agreements will be submitted for HEA's approval. Brad Evans reported that the 1991/1992 water allocations have been agreed upon. For the water year ending May 31, 1992, an excess of 27,000 megawatt-hours is predicted. No target has been set, but the reservoir should be at a low level so input is maximized. Review of Project Status Dave Eberle reported that all on-site construction, per FERC licensing, is complete as of November 23, 1991. Final close-out on several construction contracts should be complete by January 31. Bechtel will be finished by mid-February. Fuji arrived last week to begin the warranty repair work on the turbine seals. Once these repairs are complete Stone and Webster and Power Technologies, Inc. will do some joint testing with Fuji. ASEA Brown Boveri (ABB) is still on schedule with their SVS work. It has been determined that a second harmonic filter is needed at Daves Creek and design work will include the additional filter. However, there is some dispute as to whether this second filter was included in the original scope of work, and this issue could become a contract claim. Overall project completion, including SVS and the contingencies, is 93%. The bond resolution requires 98% completion before any surplus state funds can be returned. December 1992 to March 1993 is when the project is estimated to reach 98% completion. A rough estimate of $10 million might be available for return to the state. 92Q1\JD2344(3) Bradley Lake Project © mmittee Meeting Minutes January 13, 1992 tai Page 4 of 6 11. OLD BUSINESS Adoption of the Bradley Lake Dispatcher Guidelines Summary Dave Burlingame reported that the Bradley Lake Dispatcher Guidelines Summary has not been completed yet. Mr. Burlingame recommends that formal adoption not take place until the Technical Coordinating Subcommittee signs off. Copies of Chugach's one-page synopsis will be distributed for review. Proposed Motion Regarding Risk/Benefit Analysis Tom Stahr explained that the proposed motion regarding Risk/Benefit Analysis would make for easier BPMC decisions. Norm Story announced his support of an action that would provide more information on which to make decisions. Mr. Story would like to see some steps that would be used to obtain this analysis. Discussion ensued as to where this Risk/Benefit Analysis should be applied - Subcommittee level, BPMC level, or a separate economic evaluation subcommittee. Chairman Kelly requested that implementation guidelines and maybe an example be provided for the next BPMC meeting and proposed the issue be tabled until then. Dave Burlingame also raised the issue that sometimes utility representatives on a particular committee do not represent the entire utility's view on a subject. Mr. Burlingame feels that this problem coupled with mandatory risk/benefit analysis could bog things down at the committee level unless it is understood that all aspects of a problem are to be examined by the committee and a decision made that represents a view shared by every affected department. Mr. Saxton cautioned that adoption of standards should be such that they can be followed consistently. This item was tabled. Tom Stahr will provide additional information at the next BPMC meeting. 12. NEW BUSINESS A. 92Q1\JD2344(4) Approval of Committee Expenses Ron Saxton reported committee expenses from Golden Valley Electric and Ater Wynne. These two expenses totaling $19,538.54 have been approved by AEA at this time. Motion - The BPMC approves $19,538.54 in expenses submitted at the January 13, 1992 meeting. Motion by Dave Highers, second by Ken Ritchey. The motion passed unanimously. Once again Mr. Saxton urged members to submit expenses in a timely manner. Railbelt Spinning Reserve Philosophy Motion - The Bradley Lake Project Management Committee (BPMC) moves that the issue of appropriate Railbelt spinning reserves and load-shedding philosophy be remanded to the Alaska Systems Coordinating Council (ASCC) Reliability Criteria Subcommittee for study, consideration, recommendations, and implementation plan. The results of this committee are needed ASAP. Motion by Dave Highers, second by Ken Ritchey. The motion passed unanimously. Bradley Lake Project mmittee Meeting Minutes { January 13, 1992 Page 5 of 6 cS Synopsis of Manager's Meeting January 13, 1992 Chairman Kelly provided the following synopsis of the utility Manager's meeting, held on January 13, 1992 at 8:30 a.m.: i Expenses for Bernice Turbine Operation - Costs, including a minimum energy level, will be shared on a pro-rated basis for voltage stability testing and operations on the Bernice turbine when required to achieve Bradley Lake exports. Other operation of the Bernice turbine is the responsibility of Chugach Electric. Increased Voltage Swings/Export Limits - Based on the January 10 report from PTI, a recommendation has been made to increase the export limit of Bradley Lake to 90 megawatts. Homer would like further information regarding impact to the HEA system before deciding this issue. It is expected that this will be an action item at the next BPMC meeting. Bradley Output vs. Risk of Damage to HEA System - This item was covered in item 2 above. HEA System Reliability - This is viewed as an issue between Homer and their power supplier, Chugach. Some concerns of Homer remain regarding the operating limit changes being discussed. It is felt that these changes would cause this issue to extend beyond these two utilities. Bradley Spinning Reserves - This issue was forwarded to the ASCC Reliability Criteria Subcommittee. Minimum Bradley Operating Levels - This is still a concern to Homer. Underfrequency Loadshedding Study - This issue was forwarded to the ASCC Reliability Criteria Subcommittee. HEA Sales of Economy Bradley to Golden Valley - A meeting between Homer Electric Association , Chugach Electric Association, and Golden Valley Electric Association has been suggested. In the interim Golden Valley Electric Association and Homer Electric Association are operating under a handshake agreement. 13. COMMUNICATIONS A. 92Q1\ID2344(5) Schedule Next Meeting February 28, 1992 (Friday) 10:00 a.m. Chugach Electric Association Training Room Bradley Lake Project amittee Meeting Minutes January 13, 1992 Page 6 of 6 B. Dave Eberle communicated that utility testing costs are still in suspense. ML&P $1,500 GVEA $65,000 HEA $39,000 Chugach ~$100,000 TOTAL ~$206,000 Mr. Eberle requires action from the BPMC before arranging payment. If these costs will be charged as project costs Dave suggested that the Operations and Dispatch Subcommittee review these bills. Chairman Kelly requested the O & D Subcommittee review these costs and present an agenda item for the next BPMC meeting. 14. ADJOURNMENT There being no further business, the committee adjourned at 11:55 p.m. Chairman Kelly Attest: Charlie Bussell, Secretary 92Q1\JD2344(6) BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE November 19, 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, Inc. in Anchorage, Alaska to conduct the business of the Committee per the agenda and the public notice. 2. 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 E. Paul Diener, Designated Representative Homer Electric Association Norman L. Story, Designated Representative Matanuska Electric Association Ken Ritchey, Designated Representative Municipal Light and Power Thomas Stahr, Designated Representative Others Present: Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerrit Robert Hufman, Utilities Consulting Services Brad Evans, Chugach Electric Association, Inc. David Eberle, Alaska Energy Authority Tom Lovas, Chugach Electric Association, Inc. Stanley E. Sieczkowski, Alaska Energy Authority Tim McConnell, Anchorage Municipal Light and Power Moe Aslam, Anchorage Municipal Light and Power Dave Fair, Homer Electric Association, Inc. John Cooley, Chugach Electric Association, Inc. David Burlingame, Chugach Electric Association, Inc. Penny Haldane, Alaska Energy Authority Joe Griffith, Chugach Electric Association, Inc. 91Q4\JD1989(1) Bradley Lake Projec >mmittee Meeting Minutes November 19, 1991 Page 2 of 6 3. PUBLIC COMMENT There was no public comment. AGENDA COMMENTS Hearing no objection, the agenda was approved. APPROVAL OF MINUTES Hearing no objection, the minutes from October 25, 1991 were approved. TECHNICAL COORDINATING SUBCOMMITTEE REPORT Dave Burlingame distributed a written synopsis of the October 31, 1991 Technical Coordinating Subcommittee (TCS) meeting. At this meeting the TCS adopted the interim operating study prepared by PTI (Bradley Lake/Kenai Operating Guidelines). These new guidelines increased the interim operating guidelines by approximately 10-15 megawatts in all cases. These new guidelines are to be used by the Operating and Dispatch subcommittee until finalized. The Bradley Lake Project Management Committee (BPMC) concurred. Mr. Burlingame reported that the Bradley Lake Dispatcher Guidelines Summary is expected to be complete by the next BPMC meeting. The BPMC will be asked to adopt this Summary at the next BPMC meeting. INSURANCE SUBCOMMITTEE REPORT Ron Saxton reported for Brent Petrie. Insurance for this year is in effect. Preliminary work is underway for next year. BUDGET SUBCOMMITTEE REPORT Ken Ritchey held a Budget Subcommittee meeting immediately preceding the BPMC meeting. Mr. Ritchey reported that the issue of Homer's O&M costs will be resolved as soon as Ken gets the necessary information from Homer. The Fiscal Year 1993 budget was discussed at the morning meeting. The FY93 budget must be approved by April 1, 1992. The Budget Subcommittee intends to distribute the draft budget and cash flow in February so that approval could be accomplished at the March BPMC meeting. In anticipation of a past issue, the budget committee will be proposing a Memorandum of Understanding regarding AEA's overhead costs and fluctuations from year to year. 9104\ID1989(2) Bradley Lake Projec >mmittee Meeting Minutes November 19, 1991 Page 3 of 6 9. 10. 11. OPERATION AND DISPATCH SUBCOMMITTEE REPORT Stanley Sieczkowski reported that the Agreements Subcommittee met on November Sth. Six major agreements are outstanding. On November 4th AEA met with HEA and Chugach to discuss the maintenance agreement, the interconnected agreement between AEA and HEA, and the right-of-way agreement for Daves Creek and Soldotna substation. Four agreements dealing with HEA and Chugach are currently being drafted. Review of these 4 drafts will begin in December. The static var compensation system draft will be available in January 1992. The Operation and Dispatch (O&D) Subcommittee met on November 5. Comments on the Dispatch agreement and the reservoir model were received. The next meeting of the O&D Subcommittee is scheduled for December 3, 1992. On November 20 the utility Chief Dispatchers were scheduled to meet and discuss the maintenance and outage schedule. Allocations will be incorporated into the maintenance schedules for the remainder of the year. The operating criteria information was supplied to the O&D Subcommittee by the TCS Subcommittee. The Dispatch Agreement was developed and reviewed by the Agreements Subcommittee and the Operations and Dispatch Subcommittee. These two committees recommend that the Dispatch Agreement be accepted and forwarded on to Chugach and AEA for signatures. This agreement was a modification that addressed the utility's concerns and was developed into a resolution and the Dispatch agreement. Under Old Business a formal recommendation will be made. Review of Project Status Dave Eberle provided a report on project status. The work on the rehabilitation contract is almost complete and Bechtel is expected to be finished in January 1992. Stone and Webster will remain to work on the SVS contract. Seeding and revegetation will continue in the spring. Debris from the reservoir will be cleared, contaminated gravel will be disposed, and the exciter problem will be followed up by Fuji. Mr. Eberle reported that the Battle Creek diversion was complete and would begin functining this Spring. Ron Saxton asked Dave where the final projects costs stood. Dave estimates about $310 million which does not include the reserves set aside for the contaminated gravel disposal and the utility operating costs during testing. Bob Hufman had a question on resolution of the turbine efficiency problem. Dave stated that the losses related to the turbine efficiency problem are estimated to have an annual value of $8,000-$12,000. It is anticipated that monetary compensation will be offered by Fuji in lieu of attempting to modify the turbines. OLD BUSINESS A Dispatch Agreement The Dispatch Agreement has been agreed to at the Subcommittee level. The Dispatch Agreement, and the Resolution proposing new Exhibits "C" and "D" were 91Q4\JD1989(3) Bradley Lake Projec >»mmittee Meeting Minutes November 19, 1991 Page 4 of 6 distributed with the agendas and extra copies were available at the meeting. 91Q4\ID1989(4) Bradley Lake Projec »mmittee Meeting Minutes November 19, 1991 Page 5 of 6 Motion - The Bradley Lake Project Management Committee (BPMC) approves the execution of the Dispatch Agreement between Chugach and the Alaska Energy Authority. Motion by Norm Story, second by Tom Stahr. Tim McConnell proposed the_motion be amended to specify the November 5 draft and to clarify that amendments to the agreement _must_also_be approved by the BPMC. The amendment was accepted and the motion passed unanimously. Resolution Amending Allocation and Scheduling Procedures Motion - The BPMC approves Resolution 91-10 amending the Allocation and Scheduling Procedures adopted by the BPMC. Chairman Kelly read the resolution. Motion by Norm Story, second by Paul Diener. Norm Story clarified Exhibit C, Item 5 by interpreting the Bradley Lake System as including HEA and thus would include coordination with HEA. Mr. Story also requested that Exhibit C, Item 11 include Homer_when_ the _switching procedures are finalized. The motion passed unanimously. 12. NEW BUSINESS A. Approval of Committee Expenses Ron Saxton reported that there were not any committee expenses to approve at this time. Kenai Peninsula Export Limit This issue was addressed by Dave Burlingame and will come back to the BPMC as part of the Operating Guidelines. For now this item is deferred. Under New Business Dave Highers asked for discussion of the potential agreement between Golden Valley and Homer Electric regarding sale of Homer's Bradley Lake shares. After discussion it was agreed that there are several outstanding issues that need to be discussed in relation to the scheduling of Bradley. Burlingame provided some explanation of the issues being discussed and agreed to prepare some typical cases and restrictions for discussion purposes. A meeting of the General Managers and up to three representatives of each utility will be held on January 6, 1992, at 10:00 a.m. Each utility should list issues and distribute to others. This list will be compiled and used for discussion items at the January 6 meeting. This will not be an official BPMC meeting. 13. COMMUNICATIONS A 91Q4\JD1989(5) Schedule Next Meeting January 15, 1992 10:00 a.m. Chugach Electric Association Training Room Bradley Lake Projec simmittee Meeting Minutes November 19, 1991 Page 6 of 6 14. ADJOURNMENT There being no further business the copimittee adjourned at 11:45 p.m. 8 u! sy J) P. A Chairman Kelly Charlie Bussell, Secretary 91Q4\JD1989(6) ho BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE October 25, 1991 1. CALL TO ORDER Chairman Kelly called the Bradley Lake Project Management Committee to order at 10:45 a.m. in the Conference Room at Alaska Energy Authority in Anchorage, Alaska to conduct the business of the Committee per the agenda and the public notice. 2. ROLL CALL Alaska Energy Authority Charlie Bussell, Designated Representative Chugach Electric Association David L. Highers, Designated Representative Joe Griffith, Designated Alternate Golden Valley Electric Association Mike Kelly, Designated Representative and Chairman City of Seward E. Paul Diener, Designated Representative Fred Arvidson, Designated Alternate Homer Electric Association Norman L. Story, Designated Representative Matanuska Electric Association Ken Ritchey, Designated Representative Municipal Light and Power Thomas Stahr, Designated Representative 91Q4\JD1915(1) Bradley Lake Projec »mmittee Meeting Minutes October 25, 1991 Page 2 of 5 Others Present: Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerrit Robert Hufman, Utilities Consulting Services Brad Evans, Chugach Electric Association, Inc. David Eberle, Alaska Energy Authority Tom Lovas, Chugach Electric Association, Inc. Stanley E. Sieczkowski, Alaska Energy Authority Marvin Riddle, Golden Valley Electric Association, Inc. Tim McConnell, Anchorage Municipal Light and Power Gene Bjornstad, Chugach Electric Association, Inc. Moe Aslam, Anchorage Municipal Light and Power Dave Fair, Homer Electric Association, Inc. Dave Calvert, City of Seward Clayton Hurless, Copper Valley Electric Association, Inc. Steve Haagenson, Golden Valley Electric Association, Inc. Bob Orr, Golden Valley Electric Association, Inc. Penny Haldane, Alaska Energy Authority PUBLIC COMMENT There was no public comment. AGENDA COMMENTS The agenda was modified to include: 12. B. Utility Costs During Testing APPROVAL OF MINUTES Stanley Sieczkowski corrected page 4 of the August 23, 1991 BPMC meeting minutes stating that the Operation and Dispatch Subcommittee had met on July 25, 1991. Hearing no objection, the minutes from August 23, 1991 were approved with this one correction. TECHNICAL COORDINATING SUBCOMMITTEE REPORT Steve Haagenson reported that this subcommittee will be meeting the week of October 28, 1991. 91Q4\JD1915(2) Bradley Lake Projec »mmittee Meeting Minutes October 25, 1991 Page 3 of 5 10. INSURANCE SUBCOMMITTEE REPORT Charlie Bussell reported that letters had been sent requesting quotes on insurance premiums. To date, we have not received any replies, but as soon as the proposals are in the subcommittee will report. BUDGET SUBCOMMITTEE REPORT Ken Ritchey reported that the budget subcommittee had not met since the last BPMC meeting. One item concerning Homer Electric is pending and work on the new budget will begin shortly. OPERATION AND DISPATCH SUBCOMMITTEE REPORT Stan Sieczkowski provided minutes from the two previous Operation and Dispatch Subcommittee meetings (these minutes; 7/25/91 and 9/30/91, were included in the pre-meeting packet.) Mr. Sieczkowski summarized the September 30 minutes. The next O & D Subcommittee meeting is scheduled for November 5. Stan also reported that Bradley Lake experienced spill conditions from September 26 thru October 5 (1,568 acre feet of water spilled which is approximately equal to 1,505 mwh.) A report is being done by Chugach Electric and will be distributed when complete. Current lake elevation is 1,173.9 feet. After discussion, it was decided that Ron Saxton's "compromise" Bradley Lake Dispatch Agreement would be distributed along with all utility comments. Two meetings would then take place. The Agreements Subcommittee (with a new ML&P member) will meet November 5, 1991 at 8:30 a.m. at Alaska Energy Authority. The Operations and Dispatch Subcommittee will meet November 5, 1991 at 1:30 p.m. at Alaska Energy Authority. Review of Project Status Dave Eberle reported that on-site work was over 99% complete. Fuji is proposing to fix the water in the bearings problem during January 1992. The question of unit efficiency at maximum output is still being discussed with Fuji. Based upon an annual operation at maximum load of 59., approximately $8,000 in losses is in dispute. 91Q4\JD1915(3) Bradley Lake Projec »mmittee Meeting Minutes October 25, 1991 Page 4 of 5 12. Rehabilitation work is almost complete. FERC approved the Battle Creek diversion and work began. Final cost for this project is expected to be less than $250,000. Between 3.5 and 5.0 annual gigawatt hours are expected as a result of the Battle Creek diversion. Mr. Eberle also reported that clean-up activities have identified approximately 3,000 yards of gravel that was contaminated with diesel fuel as a result of a leaky liner. AEA is attempting to claim this on insurance (estimated cost is $750,000.) Tests that were done this summer by PTI reveal that the generator exciter could negatively affect stability. This item will be discussed with the Technical Coordinating Subcommittee. Worst case scenario would require modification or replacement which is estimated at approximately $200,000. The overall project budget is currently projected to have $2,000,000 in non-allocated funds upon project completion. In response to questions, Dave reported that the SVS system is expected to be fully operational in January 1993. The testing phase of this system will begin in Fall 1992. Progress on the SCADA system will be reported to the Technical Coordinating Subcommittee. Dave also commented that outages for SVS construction would be limited and he will obtain this schedule from the contractor. NEW BUSINESS A. APPROVAL OF COMMITTEE EXPENSES Ron Saxton distributed a handout outlining committee expenses that have been documented and recommended for approval by Alaska Energy Authority. Motion - Approval of expenses totaling $22,499.82 (see attached handout). Motion by Paul E. Diener, second by Dave Highers. The motion passed unanimously. 91Q4\D1915(4) Bradley Lake Projec 2mmittee Meeting Minutes October 25, 1991 Page 5 of 5 UTILITY COSTS DURING TESTING Dave Eberle reported that he has received several bills relative to support during testing. All utilities having costs associated with testing should submit a list describing each cost. An actual bill will not be required at this time. These lists were to be submitted to Stan Sieczkowski before the November Sth Operation and Dispatch Subcommittee meeting. The Operations and Dispatch Subcommittee will distribute the totals and their suggested solution with the agenda for the next BPMC meeting. Dave Eberle asked for additional information on a Homer Electric bill ($12,600). Dave Fair from HEA will provide documentation and also submitted this for review by the Operations and Dispatch Subcommittee. 13. COMMUNICATIONS A. Schedule Next Meeting: November 19, 1991 (Tuesday) 10:00 a.m. Chugach Electric Association Training Room 14. ADJOURNMENT Before adjourning Dave Highers introduced Clayton Hurless, Copper Valley Electric's new General Manager. There being no further business the Charlie Bussell, Secretary committee adjourned at 11:45 p.m Approved at the October 25, 1991 PMC Meeting. 91Q4\ID1915(5) BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE RESOLUTION NO. 91-10 A RESOLUTION AMENDING THE ALLOCATION AND SCHEDULING PROCEDURES ADOPTED BY THE BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE WHEREAS, The Alaska Energy Authority (Authority) has contracted with Chugach Electric Association, Inc. (Chugach) to provide dispatch services for the Bradley Lake project; and WHEREAS, the Allocation and Scheduling Procedures adopted by the Bradley Lake Project Management Committee (BPMC) on July 2, 1991 provide for the BPMC to adopt and amend procedures regarding scheduling and dispatch of project power. NOW, THEREFORE, BE IT RESOLVED that the BPMC hereby amends the Allocation and Scheduling Procedures as follows: 1. The attached "Scope of Dispatch Duties" and "Transmission System Dispatch and Clearance Procedures" are hereby incorporated into the Allocation and Scheduling Procedures as Exhibits C and D, respectively. 2s Section 3 is amended to insert the following: (c) Exhibit "C", Scope of Dispatch Duties (d) Exhibit "D", Transmission System Dispatch and Clearance Procedures 3 Section 6 is amended to delete "that set forth in Exhibit B", and to insert "those set forth in Exhibits B, C, and D. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE Secretary DATE: _\~30-4~ c:dks:bres2 November 25, 1991 BRADLEY LAKE HYDROELECTRIC PROJECT ALLOCATION AND SCHEDULING PROCEDURES As Revised by the BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE on November 19, 1991 November 19, 1991 These Procedures dated July 2, 1991, have been approved and adopted by the Bradley Lake Project Management Committee to govern the allocation and scheduling of electric capacity and energy available to the Purchasers from the Project under the Project Power Sales Agreement. Section 1. Definitions. For the purposes of these Procedures, the following definitions apply: (a) AEA or Authority. The Alaska Energy Authority. (b) AEG&T. The Alaska Electric Generation and Transmission Cooperative, Inc. (c) Basic Agreements. The agreements entered into and amended from time to time for the sale, purchase and transmission of Bradley Lake power and includes the Power Sales Agreement, the Chugach Services Agreement, and the HEA Transmission Sharing Agreement. (d) Bradley River Minimum Flow Releases. Those minimum amounts of water (flows) that are required to be released into the Bradley River under the FERC license. (e) Chugach. The Chugach Electric Association, Inc. (f) Chugach Services Agreement. The Bradley Lake Hydroelectric Project Agreement for the Wheeling of Electric Power and for Related Services dated December 8, 1987, between Chugach and ML&P, HEA, GVEA, MEA, SES and AEG&T providing for Chugach’s transmission and other services. (g) Dispatch Agreement. The agreement between the Authority and Chugach for the day-to-day operations of the Project. (h) Dispatcher. The Chugach Electric Association, Inc., or its successor. (i) Effective Date. The date of Commercial Operation of the Project as provided in the Power Sales Agreement. (j) Energy Account. The account maintained by the Authority to record the amount of Initial Project Energy and Page 1 - BRADLEY LAKE ALLOCATION AND SCHEDULING PROCEDURES November 19, 1991 Revised Project Energy each Purchaser is entitled to schedule under these Procedures. (k) FERC License. License No. 8221 that has been issued by the Federal Energy Regulatory Commission to the Authority for the construction and operation of the Project. (1) Fiscal Year. As defined in Section 1(r) of the Power Sales Agreement. (m) Forced Outage. An outage due to any failure of a generating facility, related auxiliaries, or a transmission facility which a Purchaser relies upon to supply firm power to meet its firm load obligation and which causes a deficiency in power resources available to meet the Purchaser’s load. (n) GVEA. Golden Valley Electric Association, Inc. (0) HEA. Homer Electric Association, Inc. (p) HEA Transmission Sharing Agreement. The Bradley Lake Hydroelectric Project Transmission Sharing Agreement dated December 8, 1987 and as amended March 7, 1989, for wheeling of power over the HEA system entered into by and among Chugach, GVEA, ML&P and AEG&T. (q) Initial Project Energy. The amount of Project Generation expected during the Project Water Year, as computed prior to the beginning of the Project Water Year pursuant to Section 4(c). (x) MEA. Matanuska Electric Association, Inc. (s) ML&P. Anchorage Municipal Light & Power. (t) Net Allocation. The monthly energy from the Project available to a Purchaser in establishing the Initial Project Energy and Revised Project Energy(s) under Section 4 from the beginning of the Project Water Year through the end of the current month less the total Project Generation for that Purchaser from the beginning of the Project Water Year to date plus any debits or credits from the previous Project Water Year. (u) Operation and Dispatch Committee. The Committee appointed by the PMC to address technical issues related to the operation and dispatch of the Project. Page 2 - BRADLEY LAKE ALLOCATION AND SCHEDULING PROCEDURES November 19, 1991 (v) PMC. The Project Management Committee established pursuant to the Power Sales Agreement. (w) Percentage Share. The fraction expressed as a percent and set forth for each Purchaser in Exhibit D of the Power Sales Agreement. (x) 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 dated December 8, 1987, and as may be amended from time to time. (y) Procedures. These Allocation and Scheduling Procedures. (z) Project. The Bradley Lake hydroelectric generating Project as described in Exhibit C of the Power Sales Agreement. (aa) Project Capability. The amount of electric capacity capable of being produced by the Project at any given time taking into account system conditions, equipment and Project transmission availabilities and limitations. (bb) Project Capacity. The amount of electric power capable of being produced by the Project at the then current reservoir level with all generating and transmission facilities of the Project fully operational. (cc) Project Generation. That amount of energy produced by the Project recorded on an hourly basis. (dd) Project Reservoir. The body of water held behind the dam of the Project used for Project Generation, Bradley River Minimum Flow Releases, and Project Spill. (ee) Project Spill. The water released from the Project Reservoir into the Bradley River in excess of Bradley River Minimum Flow Releases and in excess of that which has already been accounted for in the Reservoir Operation Model. (££) Project Water Year. The twelve-month period starting on June 1 and ending on May 31. (gg) Prudent Utility Practice. The practice defined in Section 1(x) of the Power Sales Agreement. Page 3 - BRADLEY LAKE ALLOCATION AND SCHEDULING PROCEDURES November 19, 1991 (hh) Purchaser. Purchaser means, as of any particular time, the Municipality of Anchorage d/b/a Municipal Light and Power, Chugach Electric Association, Inc., Golden Valley Electric Association, Inc., the City of Seward, and the Alaska Electric Generation & Transmission Cooperative, Inc. ("AEG&T). The term "Purchaser" includes Homer Electric Association, Inc., and Matanuska Electric Association, Inc., only to the extent specified in Section 30 of the Power Sales Agreement. (ii) Reservoir Operation Model. The model described in Exhibit A used to determine the Initial Project Energy and Revised Project Energy. (jj) Revised Project Energy. The amount of Project Generation for the remaining portion of the Project Water Year calculated under Section 4(d) if actual operating conditions significantly change the expected amount of total Project Generation for the Project Water Year from previous forecasts. (kk) SES. Seward Electric System. (11) Spinning Reserves. The amount of on-line capacity available from the Project from time to time which is available to meet Purchasers’ loads, minus actual Project output, in accordance with Section 9 of these Procedures. (mm) Termination Date. The date the PMC adopts revised procedures pursuant to the terms of the Power Sales Agreement which replace these Procedures. Section 2. Term. These Procedures shall become effective upon the Effective Date and shall continue in force until the Termination Date. Section 3. Exhibits. The following exhibits are incorporated by reference into these Procedures: (a) Exhibit "A", Description of Reservoir Operation Model; (b) Exhibit "B", Description of Project Operating Criteria; (c) Exhibit "C", Scope of the Project Dispatch Duties; and Page 4 - BRADLEY LAKE ALLOCATION AND SCHEDULING PROCEDURES November 19, 1991 (d) Exhibit "D", Transmission System Dispatch and Clearance Procedures. Section 4. Project Allocation. (a) General. Nothing in these Procedures shall cause the Project to be operated or maintained in a manner that is not consistent with Prudent Utility Practice nor shall it be operated or maintained in a manner that is not consistent with the FERC License and other permits and licenses. The PMC recognizes that the method of operating the Project may change from time to time in order to accommodate modifications to such licenses and permits. (b) Relationship to Basic Agreements. In the event that any provisions in these Procedures conflict with provisions in any of the Basic Agreements, the provisions in the Basic Agreements shall prevail. (c) Initial Allocation. The Initial Project Energy shall be determined prior to the beginning of each Project Water Year based on known operating limitations, estimates of runoff available from snowpack, precipitation for the May-October period equal to 80 percent of the long-term average, and other pertinent factors, and in a manner consistent with the following: (45) On or before March 1 of each year, the PMC shall meet and establish a coordinated maintenance schedule for their transmission facilities and the Project for the 12-month period commencing with the ensuing June 1. (ii) On or before April 15 of each year, the Authority shall transmit to the Purchasers a preliminary estimate of the amount of capacity and preliminary Initial Project Energy available for the upcoming Project Water Year. (iii) On or before May 1, each Purchaser shall submit to the Authority its forecasted monthly use of its Percentage Share of Initial Project Energy. The monthly energy requirements will be based on the expected Initial Project Energy, as estimated under Section 4(c)(ii), and the coordinated maintenance schedule established in Section 4(c)(i). (iv) Based on the total monthly energy requirements from the Project for all Purchasers, the Page 5 - BRADLEY LAKE ALLOCATION AND SCHEDULING PROCEDURES November 19, 1991 Authority shall perform the Reservoir Operation Model as outlined in Exhibit A and compare the resulting Initial Project Energy with the preliminary Initial Project Energy estimate in Section 4(c)(ii). The Authority shall transmit to each Purchaser the results of the Reservoir Operation Model by May 15. (v) If the results of the Reservoir Operation Model performed above show the expected Initial Project Energy to be different than that assumed in Section 4(c)(ii) above or there is potential for Project Spill, the Authority and the Purchasers shall work together in revising monthly energy requirements such that Initial Project Energy and the sum of the Purchasers’ monthly energy requirements assumed for the Reservoir Operation Model are equal to one another and Project Spill potential is minimized. (d) Revised Allocation. Each month the Authority shall estimate the amount of energy available from the Project for the remainder of the Project Water Year and determine the amount of energy which should be added or subtracted from each Purchaser’s Net Allocation of energy for each month in the remainder of the Project Water Year. In the event the amounts to be added or subtracted from the total Net Allocation then in effect for the Purchasers exceeds 15,000 mWhs, the Authority shall determine the amount of Revised Project Energy for each Purchaser in the following manner: Page 6 (i) The Authority shall transmit to the Purchasers a preliminary estimate of the Revised Project Energy for the remainder of the Project Water Year and the Project Generation to date. (ii) Each Purchaser shall be allocated its Percentage Share of any difference between the new Revised Project Energy, and the then in effect estimate of Project Generation for the Project Water Year. If the result of such allocation is negative, the Purchaser’s Net Allocation shall be reduced by such amount in the next Project Water Year. (iii) The Purchaser shall submit to the Authority its forecasted monthly requirements of the Revised Project Energy. (iv) Based on the total monthly requirements of Revised Project Energy, the Authority shall perform the - BRADLEY LAKE ALLOCATION AND SCHEDULING PROCEDURES November 19, 1991 Reservoir Operation Model as outlined to verify the Revised Project Energy. (v) If the results of the Reservoir Operation Model performed show the Revised Project Energy to be different than that assumed in Section 4(d)(i) or there is potential for Project Spill, the Authority and the Purchasers shall work together in revising monthly energy requirements such that Revised Project Energy and the sum of the Purchasers’ monthly energy requirements assumed for the Reservoir Operation Model are equal to one another and Project Spill potential is minimized. (e) Status of Energy Account. As soon as practicable after the end of each month, the Authority shall provide each Purchaser an accounting of the amount of Initial Project Energy or Revised Project Energy available to each Purchaser in its Energy Account for the remainder of the Project Water Year, along with its best estimate of the potential availability of additional Revised Project Energy and the potential for Project Spill in the ensuing month. If an event occurs during any month which requires the Authority to increase or decrease the amount of Revised Project Energy available to a Purchaser or increases the potential of spill, the Authority shall use its best efforts to provide each Purchaser an interim accounting of the Initial Project Energy or Revised Project Energy available and the amount of such energy which could be subject to spill in the next 30 days. (f) Failure to Refill. If the Revised Project Energy is expected to be 90 percent or less than previous estimates of Project Generation for the Project Water Year, the Authority shall notify the PMC and the Operation and Dispatch Committee. The Operation and Dispatch Committee shall recommend whether to alter the scheduled operation of the Project and the PMC shall then consider the recommendations and adopt, if appropriate, a revised schedule of Project Generation. Any disputes shall be resolved in accordance with the by-laws established by the PMC. (g) Review of Reservoir Operation Model. The methodology and inputs of the Reservoir Operation Model shall be reviewed by the Operation and Dispatch Committee at least every five (5) years and recommendations for changes to the Model provided to the PMC. The Reservoir Operation Model shall be modified, if required, to reflect any changes Page 7 - BRADLEY LAKE ALLOCATION AND SCHEDULING PROCEDURES November 19, 1991 to the permits and licenses that the Project is operated under. The PMC shall have the right to approve any changes made to the Reservoir Operation Model. Section 5. Project Scheduling. (a) General. Each Purchaser shall have the right to schedule during any month an amount of Project Generation not to exceed its Net Allocation for that month. (b) Hourly Schedules. No later than 5:00 p.m. on Thursday of each week (or the preceding day if Thursday is a holiday), each Purchaser shall provide to the Dispatcher a schedule of hourly Project Generation for its use for the following week commencing with 12:01 a.m. Sunday. (c) Minimum Scheduling. If the combined scheduled Project Generation from Purchasers scheduling generation is less than 10.0 mW in any one hour, the Purchasers shall be notified no later than 10:00 a.m. on the following day. The Purchasers shall have until 5:00 p.m. of that day to revise their schedules such that the combined Project Generation is equal to or greater than 10.0 mW. If such revisions still result in a combined scheduled Project Generation of less than 10.0 mW, such Project Generation shall not be scheduled for Project output. (d) Minimum Operations. If, due to operating constraints included in the various permits and licenses that the Project is operated under, the Project must be operated in a manner such that Project Generation is greater than that amount scheduled by all the Purchasers, the amount of Project Generation in excess of that amount scheduled shall be allocated on a pro rata basis to each Purchaser based on its Percentage Share. No Purchaser shall be obligated to take more than its Percentage Share of Project Capability. (e) Reductions in Schedules. If the combined scheduled Project Generation is greater than Project Capability in any hour, each Purchaser’s request shall be reduced during that hour in the following manner: (2) For those Purchasers who have scheduled more Project Generation than their respective Percentage Shares of Project Capability in any hour, the amount scheduled for such Purchasers shall be reduced on a pro rata basis based on the amount scheduled Project Generation exceeds Project Capability. The amount of Page 8 - BRADLEY LAKE ALLOCATION AND SCHEDULING PROCEDURES November 19, 1991 scheduled Project Generation for any Purchaser shall not be decreased pursuant to this Section 5(e)(i) to an amount less than each respective Purchaser’s Percentage Share of Project Capacity. (ii) If after making such reductions in Section 5(e)(i) the combined scheduled Project Generation still exceeds Project Capability in any hour, Project Generation for each Purchaser scheduling Project Generation in such hour will be reduced on a pro rata basis based on the respective Percentage Shares. (£) Schedule Modifications. In the event that a Purchaser experiences a Forced Outage on its own system, the Purchaser shall have the following rights and obligations: Page 9 (@ 8) The Purchaser, subject to the limitations of the Basic Agreements, shall have the right to notify the Dispatcher and schedule on an immediate basis an amount of Project Generation for its use different than its schedule in effect for the week. Such revisions can be either upward or downward. (ii) Within four hours of such notification, the Purchaser shall submit to the Dispatcher a revised schedule of Project Generation for its use for the remaining portion of the week. If such revision is not submitted, the Dispatcher will operate the Project ina manner consistent with the schedule already in effect for that week. (iii) The right of the Purchaser to schedule Project Generation up to its Percentage Share of Project Capability shall not be limited by other Purchasers scheduling Project Generation in an amount greater than their Percentage Share of Project Capability. (iv) Nothing in this section shall allow a Purchaser to schedule more Project Generation than is allowed pursuant to Section 5(a). (g) Schedules Above Participant’s Share. (i) A Purchaser, upon obtaining permission from another Purchaser that is not scheduling all of its Participant Share of Project Capability, may schedule its Net Allocation or Revised Project Allocation by using Project Capability of such other Purchaser. The - BRADLEY LAKE ALLOCATION AND SCHEDULING PROCEDURES Page 10 November 19, 1991 scheduling by a Purchaser of another Purchaser’s Project Capability shall include all the benefits, rights and obligations related to such schedule as provided in this Section. (ii) The scheduling Purchaser, as compensation for the right to schedule a portion of its Net Allocation or Revised Project Energy by use of another Purchaser’s Share of Project Capability in any hour, shall be obligated to pay such other Purchaser at $5/mW ($.005/kW) for each hour that such Purchaser’s share is used. (iii) The Dispatcher shall establish an account for each Purchaser in which the debits and credits (in Dollars) for use of a Purchaser’s Share of Project Capability under Section 5(b) will be accounted. As soon as reasonably practicable after the close of each Fiscal Year (as defined in the Power Sales Agreement), the Dispatcher shall determine the amounts which each Purchaser owes or is entitled to be paid as of the end of such Fiscal Year. Using the amounts so determined, the Dispatcher shall submit a schedule of payments to the affected Purchasers which will reduce the amounts credited or debited to each Purchaser to zero at the end of such Fiscal Year. Payments under such schedule shall be made by the owing Purchaser to the indicated Purchaser(s) within 30 days after receipt of the schedule of payments. (h) Scheduling During Periods of Pending Spill. (i) Whenever the reservoir level reaches an elevation of 1,175 feet, the Authority shall notify each Purchaser that the Reservoir has the potential of spilling water unless additional energy is scheduled by the Purchasers. (ii) The Authority shall develop a methodology for declaring and terminating periods of pending spill, which is agreed upon to the PMC in accordance with its procedures. (iii) Whenever the Authority declares that the Project is in pending spill condition, the Purchasers, to the extent system reliability and operating conditions allow, shall use their best efforts to reduce system generation to allow the Dispatcher to schedule the Project at its full available capability. - BRADLEY LAKE ALLOCATION AND SCHEDULING PROCEDURES November 19, 1991 The energy realized during periods of pending or immediate spill shall be allocated, to each Purchaser based upon its Purchaser’s Share. If a Purchaser is unable to schedule its full Purchaser’s Share of Project Capability, the energy which is not scheduled shall be made available to the other remaining Purchasers for scheduling pro rata based on their Purchaser’s Share. (iv) Once a pending spill period is suspended by the Authority, the energy scheduled and generated from inflows in excess of forecast inflows under this subsection shall be added to each Purchaser’s Net Allocation or Revised Project Energy for the month. Schedules of energy by a Purchaser during the pending spill period shall then be credited against the resulting Revised Project Energy total for each Purchaser for such month. Section 6. Project Operation. The Project shall be operated by the Dispatcher pursuant to the terms and conditions of the Dispatch Agreement and consistent with those set forth in Exhibits B, C, and D. Section 7. Project Spill. The Purchasers recognize that from time to time water from the Project Reservoir may be spilled which does not result in Project Generation. If this occurs, then: (a) The Authority shall measure the quantity of Project Spill and convert the amount of spill over and above the amount of the Bradley Minimum Flow Releases to energy, utilizing the appropriate conversion factors, and (b) Each Purchaser with a Net Allocation greater than zero during a spill period shall have its Net Allocation as adjusted in Section 5(g) reduced pro rata based upon each such Purchaser’s Net Allocation, such that the total reduction for all Purchasers is equal to the amount of energy in the Project Spill. Section 8. Losses. (a) General. The losses provided for in this Section 8 shall be accounted for in kind by reducing the amount of energy delivered to each Purchaser and not by direct monetary compensation. Page 11 - BRADLEY LAKE ALLOCATION AND SCHEDULING PROCEDURES November 19, 1991 (b) Losses on Project Transmission. Losses on the transmission lines of the Project shall be determined pursuant to load flow studies. (c) Losses on the HEA System. Losses on the HEA transmission system under various operating conditions shall be determined by the PMC in accordance with load flow studies. The studies shall be performed with and without the Project, and a matrix of loss factors developed for various Projects, HEA load levels and transmission system operating conditions. The loss factor matrix shall be of a form and format suitable for hourly accounting of losses. If actual operating and dispatch experience indicates that the loss factors may need adjustment, further studies under the above conditions shall be done, taking into account any adjustments that experience may dictate. (i) The Dispatcher shall maintain records adequate to determine the relevant HEA load levels and transmission conditions when particular deliveries of Project power are accomplished. Such records shall be made available to the parties in the HEA Transmission Sharing Agreement upon reasonable request. (ii) Deliveries under the HEA Transmission Sharing Agreement shall be reduced for line losses as appropriate under the matrix of line losses developed under this subsection. (d) Losses on the Chugach Electric System. Deliveries by the Chugach Electric System over its transmission facilities may be accomplished by Direct Transmission (as defined in the Chugach Services Agreement) or through Offsetting Flows (as defined in the Chugach Services Agreement). (4) The Dispatcher shall maintain records adequate to determine the extent to which particular deliveries are accomplished in whole or in part by each of these means. Such records shall be made available to the Wheeling Utilities (as defined in the Chugach Services Agreement) upon reasonable request. (ii) If and to the extent deliveries are accomplished by Direct Transmission, such deliveries shall be reduced for line losses. The reduction shall be by a percentage equal to the average percentage line losses on Chugach’s wholesale system, such wholesale system line losses to be determined in Chugach’s Page 12 - BRADLEY LAKE ALLOCATION AND SCHEDULING PROCEDURES November 19, 1991 periodic rate adjustment proceedings or (in the absence of such a proceeding) through reasonable line loss studies prepared by Chugach not less frequently than once every two years; provided, that if, after a reasonable period of experience in actual operation under the Services Agreement, Chugach’s system line loss studies prepared for use in Chugach’s periodic wholesale and/or retail rate adjustment proceedings demonstrate that Chugach’s wholesale system line losses have increased as the direct result of Bradley Lake Energy (as defined in the Chugach Services Agreement) delivered by Direct Transmission, then deliveries of such energy through Direct Transmission shall thereafter be further reduced for line losses to the extent of the increase in Chugach wholesale system line losses attributable thereto. (iii) If and to the extent deliveries are accomplished through Offsetting Flows as defined in the Chugach Services Agreement, such deliveries shall not be reduced for line losses; provided, that if, after a reasonable period of experience in actual operation under the Services Agreement, Chugach’s system line loss studies prepared for use in Chugach’s periodic wholesale and/or retail rate adjustment proceedings demonstrate that Chugach’s wholesale system line losses have increased as the direct result of Bradley Lake Energy delivered through Offsetting Flows, then deliveries of such energy through Offsetting Flows shall thereafter be reduced for line losses, but only to the extent of the increase in Chugach wholesale system line losses attributable thereto. Section 9. Spinning Reserves. The Operation and Dispatch Committee shall recommend to the PMC a method for allocation of Spinning Reserves in each hour under various system operating conditions. Once approved by the PMC such Spinning Reserves shall be made available in accordance with such method as follows: (a) Spinning Reserves shall be allocated to each Purchaser on a pro rata basis based on its Percentage Share of Project Capability net of any Project Generation scheduled by the Purchaser. (b) Any additional Spinning Reserves that can be made and are available at the Project in addition to Spinning Reserves normally available in any hour as a result of operating other resources shall be allocated on a pro rata Page 13 - BRADLEY LAKE ALLOCATION AND SCHEDULING PROCEDURES November 19, 1991 basis to each Purchaser in proportion to that Purchaser’s contribution of such other resources. Section 10. Amendment or Replacement of Procedures. Upon the request of any Purchaser or the AEA, the Operation and Dispatch Committee shall review any proposal to amend or replace these Procedures at the Committee’s next meeting and make a recommendation regarding such proposal to the PMC as soon as practicable thereafter. It is the intent of the PMC that the Operation and Dispatch Committee monitor the application of these Procedures and periodically recommend changes which improve overall administration of Project operations to provide additional flexibility to the Purchasers, and reduce, where practicable, the obligation of the Authority to provide information or revised data which is not useful to the Parties. Page 14 - BRADLEY LAKE ALLOCATION AND SCHEDULING PROCEDURES November 19, 1991 EXHIBIT A Description of Reservoir Operation Model (To Come) November 19, 1991 EXHIBIT B Description of Project Operating Criteria Number of Turbines. Based on the Project Generation scheduled pursuant to Section 5, the turbines shall be operated in the following manner: Less than 10.0 mw - Project not operated 10.0 - 20.0 mw - One turbine operated Greater than 20.0 mw - Both turbines operated Operating Mode. Based on the information known at the time these Procedures were adopted, the Project shall be operated in the manner described below. The Purchasers recognize that the guidelines set forth below will be modified from time to time to incorporate the findings of the Technical Coordination Subcommittee and others. Condition Mode. Islanded Grid Deflector RLS\der700B.doc EXHIBIT C SCOPE OF THE PROJECT DISPATCH DUTIES The duties of the Bradley Lake Project dispatcher include: 1. 10. AT 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 system. This includes switching for maintenance, scheduling of equipment and facilities, outages and time error correction after islanding situations. Monthly accounting summaries, Reconciliation of Bradley usage and reports be submitted to AEA. Coordinate usage of Bradley to comply with AEA preferred use and participants desired use, especially in times of imminent spill. Coordinate real power flow in times of outages in intermediate transmission facilities and generation facilities of participant utilities. Coordinate real power flow to ensure that Bradley does not violate operating restrictions. Development and maintenance of 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 D of the Allocation and Scheduling Procedure. c:\word\exhcb November 5, 1991 IT1614 Section II Il IV Exhibit "D" Transmission System Dispatch and Clearance Procedures INDEX OF SECTIONS Switching and Clearance Procedures Clearance, General Application Procedures for Receiving and Releasing Clearances Hot Line Orders, General Application Procedures for Receiving and Releasing Hot Line Orders ro co nr io 16 17 Date: November 5, 1991 TRANSMISSION SYSTEM DISPATCHING AND CLEARANCE PROCEDURES POWER DISPATCH SWITCHING AND CLEARANCE PROCEDURES E Writing of switching orders and performance of switching. 1 IT1614(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. a. 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 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. 1T1614(2) 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. 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 ina 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. pon completion, the switchperson shall give the Power Dispatcher verbal confirmation that each appropriate step has been performed. ie Open the switch, identified by number and type (and location, if appropriate). ae 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 ai the Power Dispatcher and performed by the switchperson. pon completion, the switchperson shall give the Power Dispatcher verbal confirmation that each appropriate step has been performed. dl Close the switch, identified by number and type (and location, if appropriate). Ds Check all three blades closed (or any combination of blades required for single pole switching-specify each blade by phase). IT1614(3) 3: Lock the switch in the closed position (if appropriate). 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. 15 Open the power circuit breaker identified by number and station name. 2. 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. 5: 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. 1s 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). I: Clearances, General Ie 1T1614(4) 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. Ce 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 roperty are in danger and communications with the Power ispatcher 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 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. (ce 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. 4.B. e. None of the isolating devices will be ordered closed until after the red clearance has been released. 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 LE IT1614(5) Application for Red Clearance 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 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. b. 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. cs 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 1T1614(6) 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. Receiving a Red Clearance a. 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. 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 a. 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. IT1614(7) b. A clearance shall not be transferred between parties, except as provided for in III-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 clearance and clearance 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 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. Clearances Involving Foreign Utilities 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. 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 &ower 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 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 rs eee shall make the required correction on the display panel and aie of all modifications reported. IV. Hot Line Orders - General a6 1T1614(8) 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. The Power Dispatcher shall be notified as soon as such work ceases. 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 ispatcher 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. a. The hot line order is a formal agreement between the Power ete 4 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 Hot Line Orders it IT1614(9) Application for Hot Line Orders 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. 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. 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 proven 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. 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 1T1614(10) to provide standard coordination with other protective devices on the circuit. 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 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 Order a. 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. 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 line 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.