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HomeMy WebLinkAboutBPMC Meeting - April 28, 1992 1RECORD COPY FILE NO PRO BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE April 28, 1992 CALL TO ORDER Chairman Kelly called the Bradley Lake Hydroelectric Project Management Committee to order at 10:20 a.m. in the Training Room at Chugach Electric Association in Anchorage, Alaska to conduct the business of the Committee per the agenda and the public notice. ROLL CALL Alaska Energy Authority Charlie Bussell, Designated Representative Chugach Electric Association David L. Highers, Designated Representative Golden Valley Electric Association Mike Kelly, Designated Representative and Chairman City of Seward E. Paul Diener, Designated Representative Homer Electric Association Norman L. Story, Designated Representative Matanuska Electric Association Ken Ritchey, Designated Representative Municipal Light & Power Thomas R. Stahr, Designated Representative Others Present: Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerrit Tim McConnell, Municipal Light & Power Dave Fair, Homer Electric Association David Burlingame, Chugach Electric Association John Cooley, Chugach Electric Association 2 -)] ded BPMC Meeting April 28, 1992 Page 2 of 6 Gene Bjornstad, Chugach Electric Association Bradley Evans, Chugach Electric Association Joe Griffith, Chugach Electric Association Dan Bloomer, Chugach Electric Association Tom Lovas, Chugach Electric Association Burke Wick, Chugach Electric Association Dave Calvert, City of Seward Brent Petrie, Alaska Energy Authority Stanley E. Sieczkowski, Alaska Energy Authority David R. Eberle, Alaska Energy Authority Penny Haldane, Alaska Energy Authority 3. PUBLIC COMMENT There being no public comment, the meeting continued to the next agenda item. 4. AGENDA COMMENTS The meeting agenda was approved as submitted. A. REPORT ON TUNNEL At this time, to facilitate Mr. Wick's busy schedule, Burke Wick, a Civil Engineer with Chugach Electric, provided a report on the Bradley Lake tunnel. Inspections on April 9, 1992 and April 11, 1992 revealed no severe problems. Most material found was only grout which is brittle, light, and unlikely to cause damage. The loose grout came from areas that were repaired during construction of the liner (because high inflows of water were present.) Large pieces of grout that could still possibly break loose were not expected to travel the length of the tunnel and reach the units. Mr. Wick noted that the problems with the liner would not affect the structural nature of the tunnel and that the project appeared to be in fine condition. 5. APPROVAL OF MINUTES The minutes of the March 26, 1992 meeting were approved as corrected. 6. TECHNICAL COORDINATION SUBCOMMITTEE REPORT Dave Burlingame distributed a synopsis of the last TCS meeting held April 13, 1992 (Attachment A). 7. INSURANCE SUBCOMMITTEE REPORT Brent Petrie reported that the Insurance Subcommittee was reviewing the shop and crew facilities insurance coverage. In May 1991 construction funds were BPMC Meeting April 28, 1992 Page 3 of 6 used to purchase $2,900,000 of coverage for a $26,000 premium. The 1992 rn is $3,000,000 and a $24,000 premium. The deductible on this policy is 10,000. These facilities are covered under the project's umbrella policy. However, this policy has a deductible of $1,000,000 with 5% for earthquake and flood. The premium is available to be paid from the current year budget. The effect would be $24,000 less in carryover. Without this additional coverage any loss up to $1,000,000 would be covered by a renewal and contingency fund established for such purposes. Ron Saxton reviewed the options available to the committee. The BPMC could choose not to renew the policy and thus acknowledge that they would be self- insuring up to $1,000,000. The alternative is to pay the renewal premium and thus lower the deductible on the shop and crew facilities to $10,000 ($50,000 for earthquake and flood). Chairman Kelly entertained a motion by Mr. Norm Story and seconded by Mr. Paul Diener. This motion called for approval of the expenditure of $24,000 for the insurance premium. Tom Stahr stated that he thought the BPMC should not pay for the extra insurance. Chairman Kelly expressed his concern that the Insurance Subcommittee had not reviewed this issue. Dave Eberle suggested that in the interest of self-insurance this $24,000 annual premium could be paid directly into the renewal and contingency fund. Chairman Kelly made a motion to table this discussion and to assign this item to the Insurance Subcommittee for review of options and a recommendation for the BPMC at the next meeting. Tom Stahr seconded the motion and asked that the option of not renewing the insurance and not increasing the contingency fund also be reviewed. Mr. Petrie said that he would call a meeting within the next two weeks. If the Insurance Subcommittee feels strongly that the insurance should not lapse, Chairman Kelly will call a special BPMC meeting to address the issue. Brent Petrie reported that business interruption insurance was now an option since the project has gathered the required six months of operating history. Risk Management will have to contact London to obtain a quote for this insurance. There was no further discussion regarding this item. 8. BUDGET SUBCOMMITTEE REPORT Ken Ritchey reported that the Authority prepared budget has been implemented and notice was sent to the utilities. The budget is the one previously proposed by Alaska Energy Authority with the addition of $25,000 for possible court costs. Ken and Ron Saxton met briefly with Authority representatives the morning of April 28, 1992 to discuss the issue of overhead costs, but as yet no agreement has been reached. Future talks are planned. BPMC Meeting April 28, 1992 Page 4 of 6 10. 11. At Chairman Kelly's request Ron Saxton outlined the options regarding the budget. Ron reported that the initial hurdle of the bond requirements has been satisfied. One option is for the BPMC to do nothing further and the Authority's budget will be used. If the utilities wish to have a different budget they can reach one through negotiation or one can be arrived at through the courts. The Power Sales Agreement outlines what items can be included in the budget and this would be the framework for the courts. Arbitration is an option only if three utilities and the Authority agree to arbitration. They would also have to agree if it will be binding or not. If the budget disagreement is not settled by July 1, 1992 the Authority's budget will take effect and billings will be based on that budget. However, if at any later time binding arbitration or a court decides that the budget was not appropriate, adjustments in payments would then be made to reflect the changes. AGREEMENT SUBCOMMITTEE REPORT Stan Sieczkowski reported that Alaska Energy Authority met with Homer Electric on March 27, 1992 and drafts of the three agreements were exchanged. Homer has comments on the Transmission Facility Maintenance Agreement between AEA and AEG&T, the Facilities Interconnected Dispatch Agreement between AEA and HEA, and the Soldotna Substation Right-of-Entry Agreement. A meeting is planned the week of May 4, 1992. These agreements should be available for review at the next BPMC meeting. The Communications MOU between the Authority and the State of Alaska Division of Communications is moving forward. Chairman Kelly requested that final copies of the three agreements between Alaska Energy Authority and Homer Electric be included in the mail-out for the next BPMC meeting in order to allow all parties sufficient review time. OPERATIONS & DISPATCH SUBCOMMITTEE REPORT Stan Sieczkowski reported that the Operations and Dispatch (O&D) Subcommittee met April 2, 1992. (Draft meeting minutes will be distributed in the May BPMC meeting packet.) Discussion is continuing on allocation and scheduling procedure modifications and include ponding water, accounting of water carried over and methods to use for power allocations. Forecasting of the power allocations for FY93 is currently underway. The next O&D meeting is scheduled for May 14, 1992. REVIEW OF PROJECT STATUS Dave Eberle reported the project was back on line April 25, 1992. Costs are being totaled and back charges will be made to Enserch. The de-watering process yielded considerable information. Re-watering the tunnel required ten BPMC Meeting April 28, 1992 Page 5 of 6 12. days; twice the time anticipated. A full report is being written by Stone and Webster Engineering Corporation, and the re-watering procedures will be incorporated into the O&M manuals. In answer to a question from Ron Saxton, Dave Eberle estimated $200,000 in total costs for de-watering. Some equipment was purchased for the process and some rented. Rental fees and temporary labor will likely be recovered. The costs not recovered will be charged to construction. The DECnet has been installed and work is proceeding on minor glitches in the software. A meeting to discuss the efficiency issue is scheduled with Fuji. Current estimates of lost energy range to a high of about $200,000. Fuji proposes more tests, however AEA hopes to reach a settlement without additional testing. ASEA Brown Boveri (ABB) has completed the Soldotna site work for the SVC. Work is still on hold at Dave's Creek pending receipt of the Forest Service permit. Ata recent meeting with ABB the goal of finishing work prior to December 31, 1992 was discussed. This end of year date is three months before the March 1993 contractual date. Simulator tests are scheduled in Switzerland in July. OLD BUSINESS A. ADOPTION OF DISPATCHER GUIDELINES SUMMARY Dave Burlingame distributed the Dispatch Operations Summary. The Technical Coordinating Subcommittee unanimously recommended adoption. Mr. Dave Highers motioned, seconded by Mr. Ken Ritchey, to approve the Dispatch Operations Summary. The motion was unanimously approved by roll call vote. B. SPINNING RESERVE/UNDERFREQUENCY LOAD SHEDDING Tom Lovas reported that the ASCC Reliability Criteria Committee had met twice since the last BPMC meeting. The task has been clarified and philosophy discussed. The March 31, 1992 meeting developed a framework outline for the overall analysis. Historical as well as target expectations were also identified. The follow-up meeting April 21, 1992 provided further clarification of the philosophy, criteria, and underlying parameters of any standards. The load shedding study being completed by Power Technology, Inc. is progressing well. Results are expected by the third week in May. The Intertie Operating Committee has added ten cases to evaluate certain post-Bradley installations on the load shedding framework. The next meeting is scheduled for the third week in May. Cc. HEA ECONOMY SALES TO GVEA Norm Story stated that the issue of Homer sales to Golden Valley is being addressed by a handshake agreement between HEA and GVEA. Homer is also reviewing a proposal submitted by Chugach Electric. BPMC Meeting April 28, 1992 Page 6 of 6 1S? 14. 15. MODIFICATION OF MINIMUM OPERATING LEVELS Mr. Story thanked the BPMC for their patience while the issue of Bradley minimum operating levels was addressed.' At this time Norm Story motioned, seconded by Mr. Highers, to lift the existing operating limits of the Bradley project. Brad Evans clarified that those are the restrictions set by the TCS. There are minimum operating levels set by the Dispatch and Operations Committee of ten megawatts per unit. These levels would remain under the motion. The motion was unanimously approved by roll call vote. NEW BUSINESS A. APPROVAL OF COMMITTEE EXPENSES Brent Petrie distributed a handout on Committee expenses (Attachment B). The only expenses approved at this time for payment are the Ater Wynne charges of $9,734.79. Other expenses will be reviewed and submitted at the next meeting. Mr. Ritchey motioned, seconded by Mr. Highers, to approve BPMC expenses of $9,734.79 to Ater Wynne. The motion was unanimously approved by roll call vote. COMMUNICATIONS A. SCHEDULE NEXT MEETING May 27, 1992 10:00 a.m. CEA Training Room ADJOURNMENT There being no further business, the committee adjourned at 11:00 a.m. area, ON Tt ~— Charlie Bussell, Secretary 1 BPMC Meeting July 2, 1991. ATTACHMENT 'A' CHUGACH ELECTRIC ASSOCIATION, INC. Anchorage, Alaska April 28, 1992 TO: PMC Members FROM: David W. Burlingame, TCS secretary JT SUBJECT: April 13, 1992 PMC Meeting Notes The following is a synopsis of the TCS meeting held April 13, 1992: Bradley Lake Tunnel Dave Eberle - Alaska Energy Authority (AEA), presented a video tape of the tunnel inspection and repair along with a video tape of the vertical shaft inspection. Dave gave a presentation to the Technical Coordinating SubCommittee (TCS) on the damage found and the repairs done to those areas. AEA found that penstock #3 which was believed to have been filled with rocks was virtually empty as was the rock trap pond immediately prior to the penstock entrance. The damage was considered minor by AEA, Stone and Webster Engineering Corporation (SWEC) and the FERC Board of Directors member who reviewed the video tape. AEA removed approximately 30-35 five gallon buckets from the tunnel of loose concrete. The majority of the damage was where the surface concrete of the liner had been forced inward, resulting in cracks or faults with the concrete. The deepest of these cracks appears to have gone 3-4" deep into the 12" concrete liner. The loose portions of the concrete were pried out of place and removed. Svc Project Status Permits for Daves Creek Substation will be obtained by May 21, 1992. This delay is not expected to delay completion of the total project. Soldotna is proceeding on schedule. The SVC's are scheduled to be operational sometime in November for testing with commercial operation scheduled for March, 1993. Microwave Link Status AEA has not heard any new developments since the General Managers sent a joint letter at the last PMC meeting in an attempt to gain approval for the funding transfer from AEA to DIVCOM. Exciter Tests John Doudna - PTI (Power Technologies, Inc.), gave an explanation of the exciter tests performed at Bradley Lake. The tests originally indicated the Fuji exciter did not meet specification, but it was learned the actual problem was the measuring device used by PTI during the tests. PMC Members April 13, 1992 Meeting Notes April 28, 1992 Page 2 The Dispatcher Guidelines were approved unanimously and are included as an action item for the PMC approval. Expanded Bradley Lake Operating Conditions The TCS considered expanding the operation of Bradley Lake to essentially allow for operation at 90 MW during any load conditions. Due to concerns with overvoltages and system reliability the TCS did not recommend the operating procedures be expanded. The TCS unanimously adopted the following motion: Move to recommend to the PMC that the interim operating levels previously adopted by the PMC not be changed. This considers the outcome of additional studies on Kenai operating conditions requested by the PMC at their last meeting. Bradley Lake Unit Trips The committee discussed the Bradley Lake unit trips and requested AEA prepare a report to the Operating & Dispatch Committee. DWB/pna DWB7-apr92pmc cc: TCS Members File 409 wuue Paras Gees Gee eas \) AS 1990 UTWITY OPINION LETTERS UNREIMBURSED BRADLEY LAKE COSTS COSTS INCURRED February through March, 1992 As Submitted to Ater Wynne PROJECT COSTS t fe} | | Pe] fet INAFWHOVILY a: a EE EE, td OOS SUEIPERT ELS WMUUS a cae i aia ORGANI- | ZATION ; i) ' 9,734.79 RH Troan Pape pti TN Page” flg.zaa.ze | raja | APPROVED-AT BPMC MEETING . IV s16neD: 113, . Mae 1 CHUGACH: No ooets submitted. ia GVEA: Includes cost information from December, 1991, January, 1992, 3% HOMER: Includes cost Information from september through Decembor, 1991 and January, 1992, 4. MATANUSKA: No costs submitted. 5. MLBP; No costs submilted, 6, SEWARD: Includes cost Information from August through December, 1991. 7. ATER WYNNE: Includes legal fees and costs from February 21, 1991 through March 20, 1992. Towyersic: NW SL Gl : @good wee sv OAS Vee ord ve be Forward completed chart i ' Ron Saxton | | Ater Wynne ' 222 SW Cohnnhbia. Ste. 1800 | ; Portland. OR 97201 ! | UNREIMBURSED BRADLEY LAKE COSTS UTILITY _Ater Wypne ' MONTE February ~ March 20, 1992 RETURN NO LATER — PROJECTiCOSTS | CATEGORY BL | | 1990 FINANCE TEAM PARTICIPATION — All travel-related expenses for ! members of the Finance Team for trips ' and meetings associated with the ! | second financing. \ a2 i 1990 LEGAL EXPENSES FOR FINANCING EFFORTS Legal fees of the Committee attomey | relating to the second financing ! effort. OPINIONS OF COUNSEL Scope of work on 1990 second financing effort to be determined later. TCC EXPENSES Travel and meeting expenses associated i with your utility's participation on \ the Technical Coordinating Cammtitire. | Do not include amounts for staff time. | B2 BPMC ORGANIZATION @ rai dceoend cole i coating 9,734.79 ~~: : iemBiay WES CL Ge (M008 IN ACCOUNT WITH ATER WYENE HEWITT DODSON & SKERRITT Lawyers Suite 1800 222 S.W. Columbia Portland, Oregan 97201-6618 1 Bradley Lake Project Management Committeea/Utilities Group Attn: Michael P. Kelly Box 1249 Fairbanks, Alaska 99707 March 20, 1992 or professional services and expenses from February 22, 1992 rt ila February 28, 1992: TOTAL AMOUNT DUE PER THIS STATEMENT . $ 4,610.79 4 VU Lawyers Suite 1800 222 $.W. Columbia T Portland, Oregon 97201-6618 Bradley Lake Project Management Committee/Utilities Group : Attn: Michael P. Kelly Box 1249 Fairbanks, Alaska 99707 March 20, 1992 pu For professional services and expenses from March 1, 1992 through March 20, 1992: TOTAL AMOUNT DUE PER THIS STATEMENT $ 5,124.00