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Home My WebLink AboutBPMC Meeting - April 28, 1992 3DATE: TO: FROM: SUBJECT: 92Q2\TJ2824 RECORD VUOPY FILE NO Alaska Energy Authority MEMORANDUM April 17, 1992 Bradley Lake Project ——l Committee Charlie Bussell | Secretary, PMC April 28, 1992 Bradley Lake PMC Meeting Enclosed you will find a copy of the April 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, enclosed is a copy of the draft minutes of the March 26, 1992 meeting. An executed copy of the February 28, 1992 is also enclosed for your records. DS/CB/ds Enclosures as stated. Page | of | 10. 11, 12. 13. 14. 15. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE April 28, 1992 Chugach Electric Association, Inc. Training Room - 10:00 A.M. CALL TO ORDER 10:00 A.M. ROLL CALL PUBLIC COMMENT AGENDA COMMENTS APPROVAL OF MINUTES March 26, 1992 TECHNICAL COORDINATING SUBCOMMITTEE REPORT INSURANCE SUBCOMMITTEE REPORT BUDGET SUBCOMMITTEE REPORT AGREEMENTS SUBCOMMITTEE REPORT OPERATION AND DISPATCH SUBCOMMITTEE REPORT REVIEW OF PROJECT STATUS OLD BUSINESS A. Adoption of the Bradley Lake Dispatcher Guidelines Summary B. Spinning Reserves/Underfrequency Load Shedding - Update Cc. HEA Bradley Economy Sales to GVEA - Update D. Modification of Bradley Minimum Operating Levels NEW BUSINESS A. Approval of Committee Expenses COMMUNICATIONS A. Schedule Next Meeting ADJOURNMENT Kelly Burlingame Petrie Ritchey Sieczkowski Sieczkowski Eberle Burlingame Lovas Saxton DRAFT BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE March 26, 1992 CALL TO ORDER Chairman Kelly called the Bradley Lake Hydroelectric Project Management Committee to order at 10:00 a.m. in the Training Room at Chugach Electric Association in Anchorage, Alaska to conduct the business of the Committee per the agenda and the public notice. ROLL CALL Alaska Energy Authority Charlie Bussell, Designated Representative Chugach Electric Association David L. Highers, Designated Representative Golden Valley Electric Association Mike Kelly, Designated Representative and Chairman City of Seward Dave Calvert, Alternate Representative Homer Electric Association Norman L. Story, Designated Representative Matanuska Electric Association Ken Ritchey, Designated Representative Municipal Light & Power Hank Nikkels, Alternate Representative Others Present: Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerrit Tim McConnell, Municipal Light & Power Dave Fair, Homer Electric Association David Burlingame, Chugach Electric Association John Cooley, Chugach Electric Association BPMC Meeting Minutes March 26, 1992 Page 2 of 7 Gene Bjornstad, Chugach Electric Association Bradley Evans, Chugach Electric Association Joe Griffith, Chugach Electric Association Bob Hufman, AEG&T Bob Price, Municipal Light & Power Pete Fraser, Municipal Light & Power Allan Yost, Rural Electrification Administration Stanley E. Sieczkowski, Alaska Energy Authority David R. Eberle, Alaska Energy Authority Penny Haldane, Alaska Energy Authority a PUBLIC COMMENT There being no public comment, the meeting continued to the next agenda item. 4. AGENDA COMMENTS The meeting agenda was approved with the following additions: 13C. BPMC FISCAL YEAR 1993 BUDGET APPROVAL 13D. ALLOCATION AND SCHEDULING SCHEDULE "A" APPROVAL 13E. AUTHORIZATION FOR A TCS REPRESENTATIVE TO ACCOMPANY TUNNEL INSPECTORS 13F. APPROVAL OF BRADLEY LAKE TESTING CHARGES 55 APPROVAL OF MINUTES The minutes of the February 28, 1992 meeting were amended to show Hank Nikkels as the alternate representative for Municipal Light & Power. The minutes were approved as amended. 6. TECHNICAL COORDINATION SUBCOMMITTEE REPORT Dave Burlingame reported that the Technical Coordination Subcommittee (TCS) had not met. All utilities have received the PTI studies for the expanded operation of Bradley Lake. This information will be discussed at an upcoming meeting. Mr. Burlingame addressed the recent trip at 90 megawatts. Some permitting problems with the Dave's Creek SVCS site have been encountered, however the completion date should not be affected. BPMC Meeting Minutes March 26, 1992 Page 3 of 7 Tim McConnell asked for specifics on the trip. Mr. Burlingame stated that a high tide contributed to the trip and a report will be forthcoming. Brad Evans related that the immediate feedback on the trip occurred verbally between control centers. Norm Story said they had enough information to issue a press release within the hour. Intertie reporting forms are filed by the tripping utility. Chairman Kelly would like the appropriate subcommittee to file a written report regarding all forced outages at Bradley. he INSURANCE SUBCOMMITTEE REPORT The Insurance Subcommittee had nothing to report. 8. BUDGET SUBCOMMITTEE REPORT Budget Subcommittee Chairman Ken Ritchey passed around a narrative (Attachment A) as well as a copy of the proposed budget (Attachments B and C). Mr. Ritchey explained the budget proposal in terms of operator's costs and owner's costs. The budget subcommittee recommended approval. However, AEA did not concur with the budget being recommended. The primary budget dispute was related to AEA overhead costs. After discussion Chairman Kelly asked Ron Saxton to give an opinion as to where the budget process could go from this point. Mr. Saxton related that the Power Sales Agreement and the Bond Resolution require an approved budget 90 days prior to the beginning of the fiscal year (April 2, 1992). If the BPMC fails to adopt a budget prior to April 2, 1992 then the Authority is able to unilaterally adopt a budget. The agreement then provides that the Authority budget is still subject to all the preservation of rights to dispute the contents. The first step is to ensure that there is not a breach of the bond resolution. In order to avoid a technical default the BPMC needs to be sure that some budget is in place by April 2, 1992. The options would include some compromise interim budget or the unilateral budget from the Authority. Under the Power Sales Agreement, these kinds of deadlocks are subject to dispute resolution procedures adopted by the BPMC. The procedures in place say that alternative forms of dispute resolution can be sought if three utilities and the Authority agree. This option is elective. The other alternative is to go to court. No payment obligations will be affected until July 1. BPMC Meeting Minutes March 26, 1992 Page 4 of 7 At this time Chairman Kelly asked Charlie Bussell what position the Authority would take. Mr. Bussell passed out the Authority's proposed budget (Attachment D). Stan Sieczkowski stated that the only difference between the two budgets is on page 2 line 920 (b). Chairman Kelly adjourned the meeting for a 15 minute caucus among the utility managers. The BPMC reconvened at approximately 11:45 a.m. With the understanding that negotiations could continue at any time and that a budget would be adopted by the Authority prior to April 2, 1992, Chairman Kelly moved on to the next item. Approval of the budget would be formally addressed under New Business. 9. AGREEMENT SUBCOMMITTEE REPORT Mr. Sieczkowski summarized the status of operating agreements: Allocation and Scheduling: Exhibit A will be addressed under New Business. Dispatch: Finalized and signed copies have been distributed. Transmission Facility Maintenance: On agenda at meeting scheduled with HEA (Between AEA and AEG&) March 27, 1992. Facilities Interconnected Dispatch: On agenda at meeting scheduled with HEA (Between AEA and HEA) March 27, 1992. Communications MOU: Estimated completion date of April 10, 1992. SVCS Draft Agreement: CEA comments expected soon. Dave's Creek Substation: Signed March 13, 1992 (Right of Entry) Soldotna Substation: On agenda at meeting scheduled with HEA (Right of Entry) March 27, 1992. BPMC Meeting Minutes March 26, 1992 Page 5 of 7 10. 11. 12. OPERATION & DISPATCH SUBCOMMITTEE REPORT Stan Sieczkowski reported that the Operation and Dispatch Subcommittee met on March 4, 1992. Highlights of this meeting were given and a copy of the draft meeting minutes were distributed as part of the March 26, 1992 pre- meeting packet. The SCADA communications problem being investigatedis expected to be resolved. A letter has been sent to the utilities outlining the 231,000 megawatt- hours delivered to the utilities as of February 1992. The forecast for next year is 403,000 megawatt-hours, an increase from 383,000 megawatt-hours. REVIEW OF PROJECT STATUS Dave Eberle reported that dewatering of the tunnel had begun the day before (March 25, 1992.) Currently the reservoir is at elevation 830, down about 300 feet. It was noted that higher than anticipated in-flows may slow the dewatering process. The tunnel should be accessible by March 31, 1992 at which time a walk through the penstock will be made to check for debris. Inspection is scheduled for April 3 - 4, 1992. All parties have been notified so they can be present and three different insurance carriers have been notified. Equipment has been mobilized for small repairs but other decisions will be required if major repairs are needed. OLD BUSINESS A. ADOPTION OF THE BRADLEY LAKE DISPATCHER GUIDELINES SUMMARY The TCS has not met and therefore adoption of the Bradley Lake Dispatcher Guidelines Summary will be held over till the next BPMC meeting. B. SPINNING RESERVE/UNDERFREQUENCY LOAD SHEDDING - UPDATE John Cooley reported that the ASCC Reliability Criteria Committee is meeting March 31, 1992 to continue discussing the Spinning Reserves/Underfrequency Load Shedding. The load shed study is progressing and results are expected by the May Intertie Operating Committee meeting. BPMC Meeting Minutes March 26, 1992 Page 6 of 7 HEA ECONOMY SALES TO GVEA - UPDATE Chairman Kelly stated that a meeting had occurred regarding the HEA Bradley Economy Sales to GVEA, however more work is required on this item. 13. NEW BUSINESS A. APPROVAL OF COMMITTEE EXPENSES Ron Saxton distributed a handout on Committee expenses (Attachment E). All expenses had been approved for payment by the Authority. Mr. Ritchey motioned, seconded by Mr. Story, the BPMC approve reimbursement of the Section 31 costs. The motion was unanimously approved by roll call vote. LETTER TO LB&A IN SUPPORT OF MICROWAVE UPGRADE Dave Eberle distributed a draft letter to LB&A in support of Microwave Upgrade (Attachment F). The letter was changed to read telephone carrier instead of telephone industry. Dave Highers motioned, seconded by Mr. Story, to adopt the letter and recommend signature. The motion was approved without objection. The letter was transferred to Chugach letterhead and signed at the meeting. BPMC FISCAL YEAR 1993 BUDGET APPROVAL Ken Ritchey motioned, seconded by Mr. Story, to approve the BPMC budget as recommended by the Budget Subcommittee. In a roll call vote, the City of Seward, Matanuska Electric Association, Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, and Municipal Light & Power voted in favor of the proposed budget. The motion was defeated by Alaska Energy Authority's descending vote. Chairman Kelly stated that he expected the Authority to adopt a budget prior to the April 2, 1992 deadline and to notify the members of the BPMC. BPMC Meeting Minutes March 26, 1992 Page 7 of 7 14, 15. ALLOCATION AND SCHEDULING SCHEDULE "A" APPROVAL Mr. Story motioned, seconded by Mr. Highers, approval of the Allocation and Scheduling Exhibit "A". The motion was unanimously approved by roll call vote. AUTHORIZATION FOR A TCS REPRESENTATIVE TO ACCOMPANY TUNNEL INSPECTORS Mr. Highers motioned, seconded by Mr. Ritchey, that the Technical Coordinating Subcommittee appoint a representative to accompany the tunnel inspectors. The motion was approved without objection. APPROVAL OF BRADLEY LAKE TESTING CHARGES Stan Sieczkowski reported that the Operation and Dispatch Subcommittee has reviewed and recommends approval of the Bradley Lake project start-up test charges (Attachment G). Mr. Highers motioned, seconded by Mr. Story, the BPMC approve reimbursement of the test charges. The motion was unanimously approved by roll call vote. COMMUNICATIONS A. SCHEDULE NEXT MEETING April 28, 1992 10:00 a.m. CEA Training Room ADJOURNMENT There being no further business, the committee adjourned at 12:15 p.m. Mike Kelly, Chairman Attest: Charlie Bussell, Secretary = | cHMENT A MEMORANDUM DATE: March 26, 1992 TO: Bradley Lake Project Management Committee FROM: Bradley Lake Budget Subcommittee Tom Lovas, CEA Pete Frazier, AML&P Stan Sieczkowski, AEA Ron Saxton, PMC Attorney Ken Ritchey, MEA SUBJECT: Bradley Lake FY93 Budget We have attached a copy of the proposed FY93 Budget. The subcommittee has reviewed all items included in the budget proposal and we believe that the proposed expenditures are appropriate. The major disagreement i in our budget deliberations has been the amount of AEA “administrative” cost that the utility participants would have to bear. The budget drafts that have been circulated to the PMC members prior to this final draft have included the AEA proposed method of allocating AEA’s general and administrative costs. These allocated general and administrative costs do not include any general and administrative costs that can easily be directly charged to Bradley Lake. AEA has proposed that Bradley Lake utility participants pay for these "non-specific" general and administrative costs in the same ratio as the percentage of Bradley Lake direct labor charges compared to direct labor charges on all AEA projects. In other words, if direct labor charges to the Bradley Lake project are 20 percent of all direct labor charges, Bradley Lake participants would be asked to pay for 20 percent of all general and administrative costs. The actual percentage calculated by AEA was just under 19 percent. The attached final draft of the FY93 budget proposes, based upon the utility interpretation of the Bradley Lake Power Sales Agreements, that we calculate the amount we pay AEA in a different manner. We are recommending that we think of AEA costs in two parts. That is, AEA incurs costs as owner of the project, and also incurs costs as operator of the project. Operator costs would be incurred whether AEA or another party were the operator. However, the costs of owning the project are general and administrative costs that should be paid by utility participants only if the costs are specific to the project. The example noted in tea Power Sales Agreement, safety inspections and investigations, are AEA general and administrative costs that are costs AEA incurs as owner of the project. FROM MEA PALMER AK 3.26.1992 16:0@ P. 2 ee to Bradley Lake Project Management Committee age 2 March 26, 1992 The utility oe believe that this results in three appropriate categories of expense. The first category are those costs, whether personnel or other, directly incurred by AEA to operate and maintain the proper. The, second category of expense are those “overhead” costs incurred to support the operation and maintenance of the neers The third are specific general and administrative costs. We have attached a breakdown of AEA personnel and non-personnel costs, which places the costs into one of the three categories. AEA Calculation Personnel Charge $ 693,025 Non-Personnel Charges -0- G&A Overhead Costs 423,226 Total $1,116,251 Utility Calculation “Operator” "Owner" BEM Cua Direct Personnel $518,187 $ 174,838 Direct Non-Personnel 0 0 Overhead 194.435 nd Subtotal $712,622 $ 174.838 O&M $712,622 G&A 174.838 Total $887,460 The only difference between the (wo calculations is that the utility participants agree that we should pay for $194,435 of the $423,025 that AEA identified as general : administrative “overhead” costs. We have reasoned that it is likely that there is some word processing, filing, data processing, and other office support needed in the operation of the i Many of these costs would be extraordinarily difficult to specifically identify hour by hour. However, we do not agree that we are obligated to pay for overhead loading on specific G&A expenses. We will describe our method of dete: the O&M overhead loading. We reviewed each of the pavers who charged time to "overhead." Only those AEA employees who would likely be involved in support of the operation of the project were retained in the O&M overhoad loading analysis. For example, while a receptionist is needed by AEA, that activity has little to do with the operation of the project. Therefore, the receptionist’s time was not included. On the other hand, we could envision an accounting clerk could be used to update Bradley operating reports. Therefore, the accounting clerk's time was included. R=96% 9077459328 03-26-92 10:09AM POO02 #20 MEMORANDUM to Bradley Lake Project Management Committee Page 3 March 26, 1992 We allocated this resulting overhead based upon Bradley Lake O&M direct personnel charges compared to all AEA direct personnel charges. Non-personnel costs were allocated in the same manner, i.e., based upon the percentage of Bradley Lake O&M direct personnel charges compared to all AEA direct personnel charges. These O&M overhead costs would no longer be paid AEA once the project operating duties are transferred to another party. One practical result of this analysis is that some expenditures that were included as O&M we have now classified as G&A, and some expenditures that AEA had designated as G&A have now been reclassified as O&M. Due to the restraint of time, this budget document does not reflect this change. However, this change should be made at a later date. Recommendation: The Bradley Lake Budget Subcommittee recommends by a vote of four to one (AEA voted against the recommendation) that the PMC adopt the attached FY93 budget in the amount of $2,443,352. The subcommittee also recommends that the PMC direct the subcommittee to rework the FY93 budget placing only O&M expenditures in O&M accounts and G&A expenditures in G&A accounts, and to resubmit the revised budget to the PMC within the next three months. ig 101.920325.705 Attachments BRADLEY LAKE FY93 DRAFT BUDGET ACCOUNT DESCRIPTION HYDRAULIC POWER GENERATION COMMENT ITEM ACCOUNT TOTAL 535 Operation Supervision and Engineering Supervision, Engineering and Administrative Support -3.2FTE if 257,926 537 Hydraulic Operation Expenses Inspection of Three Diversions 6,000 Snow measurement, SCS 20,000 [sea Monitoring, UAF 20,000 Climatologic - NOAA Weather Service 5,460 Semi-Annual Dam Settlement Survey 2,000 Conservation Studies for Fish and Game 18,000 71,460 538 Electric Operation Expense SCADA Technical Maintenance 25,000) Powerplant Operations - .4 FTE 42,000 Supplies a 15,000 | 82,000 539 Hydraulic Power Generation Operation Expense [Mechanical vibration and balance testing, consumables such as oil and fillers, die checks 20,000 20,000] and pressure nitrogen cylinder recharges. if 540.1 Transportation Helicopter Transportation for Project Facility Inspections 91,000 ef Barge Rental to Transport Materials and Dock Fees 27,500 ines Project Site Contract Transportation - Scheduled Fixed Wing Service to Site 70,000 al i Commercial Transportation 14,400) ie Safety zt __|Technical and Operations Training 14,000) lt Maintenance Management System ___|Software Upgrade Modification and Training a 4,000 SIH Communications Divcom Maintenance Fee an 40,000 ta Le Project radios, pagers, and telephones ut 6,000) il EEE CS eee TTSEEEEay Pee im 266,900 542 Maintenance of Structures [Routine Supplies, Materials and Maintenance Items i if 60,000 60,000 Page 1 of 3 FY93BUDB.XLS 8:39 AM 3/20/92 lw BRADLEY LAKE FY93 DRAFT BUDGET ACCOUNT TOTAL FERC ITEM Acct. ACCOUNT DESCRIPTION COMMENT AMOUNT Maintenance of Electric Plant Electrical Spare Parts Contract Labor for Testing Protective and Revenue Meters, Generators, Transformers, 70,000 545 Maintenance of Misc. Hydraulic Plant Mechanical Spare Parts = Misc. Maintenance Contracts i 45,000) 545.1 Maintenance of Hydraulic Plant O&M Personnel 4.2 FTE 392,000] 547 Fuel Stock Fuel for Bradley Vehicles, Loaders, Graders ee 40,000) System Control and Load Dispatching Labor - CEA 1 FTE 118,000] ‘Training - CEA Dispatchers 36,000: 7 Economic Dispatch Program (10 yr. Armortization ) - CEA 20,000 Peele 174,000 TRANSMISSION EXPENSES _ Bradley Junction Substation Switchyard Inspection and Tests - HEA 2,000) 2,000, Maintenance of Overhead Lines Transmission Line Inspection and Maintenance - HEA 39,000 = 39,000 ADMINISTRATIVE, GENERAL AND REGULATORY EXPENSES Administration and General Expenses a. Bradley PMC Costs PMC Travel Cost 6 PMC Meetings each year in Anchorage _ 23,000) Subcommittee Travel Cost — 12 Subcommittee Meeting each year 15,000 oe Meeting General Expenses i PMC Adminstrative Support _ L 18,000] al | b. Administration Expenses 194,435 194.435 O&M Overhead Loading Page 2 of 3 FY93BUDB.XLS 8:39 AM 3/20/92 BRADLEY LAKE FY93 DRAFT BUDGET ACCOUNT ACCOUNT DESCRIPTION TOTAL Contract Services a, Legal Attorney Fees (AEA & Utilities) i" b. Project Audit Professional Audit Services 15,000 Ll 25,000 Insurance _ 7 a. Property $1M Deductible 160,824 b. Boiler and Machinery $50K Deductible 50,000 c. General Liability One-Sixthe of AEA State Policy Premium 10,000 d. Watercraft & Aviation One Sixth of AEA State Policy Premium 10,000, | e. Directors and Officers Liability Liability Insurance for the Directors and Officers of the PMC 15,000. 245,824 Regulatory Commission Expenses a, FERC i Land Use Fees FY92 Billing $97,000 100,000] Administrative Fees Estimate 50,000] _ USGS Streamgaging 210,410 = Five Year Inspection Engineering Consultant (est. $75,000 in FY96) 15,0] _ b. Permitting AEA Permits Specialist 26,397 401,807 TOTAL FY93 BRADLEY O&M BUDGET Page 3 of 3 2,443,352 saa FY93BUDB.XLS 8:39 AM 3/26/92 aea_oh 3/25/92 Summary Utilities OH vs AEA OH Direct Personnel Charges to Bradley O&M Additional Proposed Personnel Charge Through Overhead Allocation Non—Personnel Proposed Charge Through Overhead Allocation Total AEA Proposed Overhead Allocation Indirect Non Personnel Exp: RSA Law O/h legal Dp Chargebacks computer Telephone & Post Gen Off Suppt Courier Svc O/H Advt Printing / microfim Advt Prntg/pwr stats, ann rep Off Equip rep & maint Repair & Maint DP equip Off Leased Space Off Equip Ise copies word process Off & Libry Supp Off Supplies DP Supplies Commun Equip Gen Off suppt Data Process Equip Gen Off Furn & Equip Gen Off Total Indirect Non Personnel Times Dir Chgs % of AEA Pers Svc O&M OH Loading Personnel Services Non—personnel Services Total AEA (Owner) A&G Total 22,000 2,500 111,400 6,500 8,000 13,500 18,100 25,000 128,000 20,000 5,600 38,900 38,000 5,000 58,000 3,000 O&M Direct 518,187 jon i. | an s 503,500 14.2% 71,305 O&M OH Loading 123,130 71,305 194,435 CHMENT Total O&M 641,317 71,305 712,622 = N > : ico FE ES 8 Adjstmt 164,279 64,512 228,791 287,409 135,817 423,226 Utilities 123,130 71,305 194,435 aea_oh 3/25/92 PCN Position Title 401 Executive Director 402 Project Manager—Bradliey 405 Mngr/Agency Operations 406 Director/Acctg & Admin 407 Senior Economist 408 Information Officer 412 Accounting Clerk 413 Accountant 414 Executive Secretary 415 Info Sys Anist/Progrmmr 417 Correspond Sectry I! 420 Receptionist 423 Finance Manager 424 Sys Admin Progrm Engr 425 Dir Fac Ops & Engr 429 Hydro Pit Mnt WKr Elec 430 Hydro Pit Mnt Wkr Elect 431 Hydro Pit Mnt Wkr Elec 432 Sr Elect Engineer 433 Mgr Engin Support 435 Proj Mngr Property 437 Bud Anlyst Loans Admin 440 Drafting Tech 443 Civil Engineer 448 Administrative Asst II 449 Permits & ROW Specist 453 Accountant 454 Accountant 457 Adminst Clerk 458 Personnel Officer 459 Records Coordinator 463 Info Sys Analyst Prgmr 464 Admin Assistant Ill 467 Accounting Tech 468 Administrative Cordnatr 469 Contrct Admintr II 470 Correspondence Secrty | 473 Clerk Ill 474 File Clerk 475 Accounting Clerk 476 Special Assistant 482 Admin Assistant I! 485 Sr Ops Engineer 486 Statistical Analyst 487 General Foreman Bradley 488 Documents Processor 490 Procurement Supervisor 493 Accountant 496 Info Systems Supvisor new Development Specialist new Mechanical Engineer Total Personnel AEA Total Agency Direct Personnel Services Direct O/M as a Percent of Total AEA Personnel Svc Loading AEA Per Ser Incumbent Cost $ OH on O&MDirect O&M Bussel 109,710 Eberle 62,165 Petrie 117,585 6,661 Marni 117,585 4,163 Emerson 106,950 Harper 51,123 Macy 41,647 5,898 Hansen 56,734 5,785 Ganthner 56,734 Spears 71,439 10,117 Johnson 41,647 5,898 Vik 32,124 69,071 Wilbanks 62,473 Sieczkowski 117,585 Turner 100,392 100,392 Sherlock 97,662 97,662 Hansen 100,392 100,392 77,822 Khan 102,778 Acuff 88,787 12,574 64,460 Lammers 53,252 Marchegiani 100,351 20,070 Burger 19,961 Arminski 94,276 13,199 Soboklesky 80,417 16,083 53,252 Antoine 44,079 Acuff 73,649 10,430 Bailey 48,292 6,839 waer 60,549 8,575 Hurley 27,413 3,882 Judd 45,431 6,434 Tomory 53,252 Hagen 58,689 8,311 Deacon 37,466 Marsh 36,464 5,164 33,746 4,779 Morrison 37,466 White 106,950 Scott 48,292 Wolf 106,950 42,780 Haldane 61,345 Zidalis 121,554 121,554 Davis 38,531 5,457 60,549 6,055 Choe 83,102 Crosby 85,892 12,164 Ward 88,787 85,007 3,591,829 123130 518,187 3,659,055 14.2% Direct O&M O&M OH Loading Subtotal O&M A&G (Owner) Total Personnel SVC charges AEA A&G (Owner) 3,454 12,495 30,572 7,782 2,663 9,981 13,199 8,042 10,650 3,747 2,415 42,780 3,067 3,027 12,465 Bradley Total Dir O&M and A&G (owner) 6,661 4,163 5,898 5,785 10,117 5,898 3,454 12,495 30,572 100,392 97,662 100,392 7,782 12,574 2,663 20,070 9,981 26,397 24,125 10,650 10,430 6,839 8,575 3,882 6,434 8,311 5,164 4,779 3,747 2,415 85,560 3,067 121,554 5,457 9,082 12,465 12,164 8,501 AEA OVERHEAD ALLOCATION TO BRADLE PCN Position Title 401 Executive Director 402 Project Manager—Bradley 405 Mngr/Agency Operations 406 Director/Acctg & Admin 407 Senior Economist 408 Information Officer 412 Accounting Clerk 413 Accountant 414 Executive Secretary 415 Info Sys Anist/Progrmmr 417 Correspond Sectry Il 420 Receptionist 423 Finance Manager 424 Sys Admin Progrm Engr 425 Dir Fac Ops & Engr 429 Hydro Pit Mnt WKr Elec 430 Hydro Pit Mnt Wkr Elect 431 Hydro Pit Mnt Wkr Elec 432 Sr Elect Engineer 433 Mgr Engin Support 435 Proj Mngr Property 437 Bud Anlyst Loans Admin 440 Drafting Tech 443 Civil Engineer 448 Administrative Asst II 449 Permits & ROW Specist 453 Accountant 454 Accountant 457 Adminst Clerk 458 Personnel Officer 459 Records Coordinator 463 Info Sys Analyst Prgmr 464 Admin Assistant Ill 467 Accounting Tech 468 Administrative Cordnatr 469 Contrct Admintr Il 470 Correspondence Secrty | 473 Clerk Ill 474 File Clerk 475 Accounting Clerk 476 Special Assistant 482 Admin Assistant Il 485 Sr Ops Engineer 486 Statistical Analyst 487 General Foreman Bradley 488 Documents Processor 490 Procurement Supervisor 493 Accountant 496 Info Systems Supvisor new Development Specialist new Mechanical Engineer Total Personnel Incumbent Bussel Eberle Petrie Mami Emerson Harper Macy Hansen Ganthner Spears Johnson Vik Wilbanks Sieczkowski Tumer Sherlock Hansen Khan Acuff Lammers Marchegiani Burger Arminski Soboklesky Antoine Acuff Bailey waer Hurley Judd Tomory Hagen Deacon Marsh Morrison White Scott Wolf Haldane Zidalis Davis Choe Crosby Ward € Cost $ 109,710 62,165 117,585 117,585 106,950 51,123 41,647 56,734 56,734 71,439 41,647 32,124 69,071 62,473 117,585 100,392 97,662 100,392 77,822 102,778 88,787 64,460 53,252 100,351 19,961 94,276 80,417 53,252 44,079 73,649 48,292 60,549 27,413 45,431 53,252 58,689 37,466 36,464 33,746 37,466 106,950 48,292 106,950 61,345 121,554 38,531 60,549 83,102 85,892 88,787 85,007 3,591,829 Bradley AEA Construction 5% 100% 1% 5% 25% 11% 5% 1% Bradley % Charged to Loading % Owner aea_oh 3/25/92 AEA O/H Addition! O&M OHonO&M Admin OH Proposed 100% 100% 100% 20.0% 14.0% 20.0% 100% 10.0% 5.7% 3.5% 14.2% 10.2% 14.2% 14.2% 14.2% 14.2% 14.2% 14.2% 14.2% 14.2% 14.2% 14.2% 14.2% 14.2% 14.2% 5% 10% 5% 14% 10% gig 3 # 15% 10% 5% 40% 25% 58% 40% 100% 72% 30% 100% 100% 100% 39% 100% 10% 14% 100% 100% 100% 100% 100% 100% 100% 75% 100% 100% 75% 74% 16% 100% 100% 100% 225% = 04% — 217.7% = =— 280% = 262% PMC O/H Proposed dir dir dir 33 BRADLEY LAKE FY93 DRAFT BUDGET HYDRAULIC POWER GENERATION Operation Supervision and Engineering Supervision, Engineering and Administrative Support - 3.2 FTE Hydraulic Operation Expenses Inspection of Three Diversions Snow measurement, SCS Siesmic Monitoring, UAF Climatologic - NOAA Weather Service Semi-Annual Dam Settlement Survey Conservation Studies for Fish and Game 538 Electric Operation Expense SCADA Technical Maintenance Powerplant Operations - .4 FTE Supplies 539 Hydraulic Power Generation Operation Expense Mechanical vibration and balance testing, consumables such as oil and filters, die checks and pressure nitrogen cylinder recharges. 540.1 Transportation Helicopter Transportation for Project Facility Inspections a1 ,000] Barge Rental to Transport Materials and Dock Fees 27,500 Project Site Contract Transportation - Scheduled Fixed Wing Service to Site 70,000) | _— Commercial Transportation _ 14,400 Safety ‘Technical and Operations Training 14,000 Maintenance Management System Software Upgrade Modification and Training _ 4,000] Communications Divcom Maintenance Fee 40,000] _ —— _ Project radios, pagers, and telephones _ 6,000 — ws oo _ — — — i eee — — — 266,900 542 Maintenance of Structures - [Routine Supplies, Materials and Maintenance Items = 60,000 i 60,000 Page 1 of 3 FY93BUDB.XLS 8:42 AM 3/26/92 wiv aq BRADLEY LAKE FY93 DRAFT BUDGET ITEM ACCOUNT ACCOUNT DESCRIPTION COMMENT AMOUNT TOTAL S44 Maintenance of Electric Plant Electrical Spare Parts 40,000] We Contract Labor for Testing Protective and Revenue Meters, Generators, Transformers, ae 30,000 Ly 70,000 545 Maintenance of Misc. Hydraulic Plant Mechanical Spare Parts 20,000 Misc. Maintenance Contracts 25,000 45,000 545.1 Maintenance of Hydraulic Plant O&M Personnel 4.2 FTE 392,000 392,000 547 Fuel Stock Fuel for Bradley Vehicles, Loaders, Graders 40,000] 40,000: 556 System Control and Load Dispatching Labor - CEA 1 FTE 118,000 el ‘Training - CEA Dispatchers 36,000: Economic Dispatch Program (10 yr. Armortization ) - CEA 20,000 174,000 ua] TRANSMISSION EXPENSES 562 Bradley Junction Substation Switchyard Inspection and Tests - HEA 2,000 2,000 571 Maintenance of Overhead Lines Transmission Line Inspection and Maintenance - HEA : 39,000: 39,000 ADMINISTRATIVE, GENERAL AND n REGULATORY EXPENSES oe 920 Administration and General Expenses Ht |e a. Bradley PMC Costs i | J i Tit i PEE EE a PMC Travel Cost = 6 PMC Meetings each year in Anchorage 23,000 i a Subcommittee Travel Cost 12 Subcommittee Meeting each year ee) Meeting General Expenses u oe PMC Adminstrative Support an 18,000) i HL EE n r 1 | «56,000 b. Administration Expenses TL ii AEA Administrative and General Costs E e 396,011{ 396,011. Page 2 of 3 FY93BUDB.XLS 8:42 AM 3/26/92 BRADLEY LAKE FY93 DRAFT BUDGET FERC ACCOUNT ACCOUNT DESCRIPTION COMMENT Contract Services a. Legal Attorney Fees (AEA & Utilities) b. Project Audit Professional Audit Services Insurance | a, Property $1M Deductible 160,824 b. Boiler and Machinery | ¢. General Liability d. Watercraft & Aviation e. Directors and Officers Liability $50K Deductible ‘ 50,000 H| One-Sixthe of AEA State Policy Premium 10,000 One Sixth of AEA State Policy Premium 10,000 Liability Insurance for the Directors and Officers of the PMC 15,000 245,824 Regulatory Commission Expenses a, FERC Land Use Fees Administrative Fees FY92 Billing $97,000 100,000 Estimate 50,000: USGS Streamgaging _ i Engineering Consultant (est. $75,000 in FY96) AEA Permits Specialist Five Year Inspection b. Permitting TOTAL FY93 BRADLEY O&M BUDGET Page 3 of 3 FY93BUDB.XLS 8:42 AM 3/26/92 DATE: TO: FROM: SUBJECT: —_ ACHMENT E Alaska Energy Authority MEMORANDUM March 23, 1992 Bradley PMC Members BANOS Brent N. Petrie, Manager Agency Operations Bradley PMC Costs Documentation of the attached summary of costs which was received on February 26, 1992, have been reviewed and are recommended for approval. Reimbursement from project construction funds = $506.78. Reimbursement from Section 31 funds = $14,990.23. BNP:tlj Attachments as stated. aia 92Q1\TJ2653(1) Page 1 UNREIMBURSED BRADLEY LAKE COSTS COSTS INCURRED October, 1991 through February, 1992 As Submitted to Ater Wynne PROJECT COSTS } FINANCE | TEAM ACTIVITIES BPMC LEGAL AND ] FINANCE 1990 UTILITY |} OPINION LETTERS 360.00 146.78 ioe Poot Ho 360.00 SECTION 31 COSTS B2(a) BPMC ORGANI- ZATION CHUGACH: No costs submitted. GVEA: Includes cost information from December, 1991, January, 1992. HOMER: Includes cost information from September through December, 1991 and January, 1992. MATANUSKA: No costs submitted. ML&P: No costs submitted. SEWARD: Includes cost information from August through December, 1991. ATER WYNNE: Includes legal fees and costs from January 1992 through February 21, 1991. EGW\egw082R.NOs DRAF ek March 25, 1992 u pa’ Ja . The Honorable Ronald L. Larson Chairman Legislative Budget & Audit Committee Room 502, Capitol Building Juneau, Alaska 99811 Dear Mr. Chairman: As the utility managers representing over 95% of Alaska's electric consumers in the railbelt region, we wish to voice our concern regarding a situation that has todate been stalled within your committee. Over the past decade, the railbelt utilities and the Alaska Energy Authority have worked intently toward the common goal of reducing electric rates and improving system reliability to the area's consumers. Two major projects, the Anchorage-Fairbanks Intertie and the Bradley Lake Hydroelectric Project, which were constructed by the Energy Authority and funded in part by the railbelt utilities, play a significant role in this overall objective. As an integral part of these projects and the operating agreements with the State, the communications system required to operate and dispatch the projects is provided by the Energy Authority through the use of the existing state-owned microwave network. To date several million dollars in project funds have been invested in the state's microwave network to meet the operating and reliability requirements for these two projects. The most recent work being associated with the Bradley Lake Hydroelectric Project which was placed into commercial service this past summer. Pending before your committee is a Reimbursable Services Agreement (RSA) between the Alaska Energy Authority and the Division of Telecommunications to upgrade the existing microwave link between Soldotna and Anchor Point. This section of the microwave network which controls Bradley Lake, is the only portion of the State's system which is 'non-protected' (i.e. does not have standby transmitters and receivers). As a consequence the reliability of this segment is far below the balance of the network, and has already resulted in operational problems on several occasions. It is imperative that this final link be upgraded to overcome these problems and provide the necessary level of overall system reliability. , lawices We support the proposed RSA between the Energy Authority and the Division of Telecommunications which will accomplish this work and resolve seyerdl other minor communications problems at Bradley Lake. Although the telephone industry) may try to convince you otherwise, it is clearly in the best interest of the electric consumers that this upgrade be completed as soon as possible. Any alternatives to the continued use of the existing state microwave system to support the operation of Bradley Lake and the Intertie would be vastly more expensive. Such added costs, would in turn, result in increased rates to our consumers. 92Q1\TJ2662(1) Page 1 Letter to The Honorable Ronaid L. Larson Subject: RSA between AEA and DIVCOM March 25, 1992 We request your support and assistance in resolving this matter promptly by approving the ase RSA. If you should have any questions regarding this matter, please do not esitate to contact any of us. Sincerely, Mike Kelly, General Manager Golden Valley Electric Association Norm Story, General Manager Homer Electric Association Tom Stahr, General Manager Anchorage Municipal Light & Power DRE:tlj 92Q1\T32662(2) David Highers, General Manager Chugach Electric Association Ken Ritchey, General Manager Matanuska Electric Association Everett P. Diener, Manager of Utilities City of Seward Page 2 Item 10A BRADLEY LAKE PROJECT SUMMARY PROJECT STARTUP TEST CHARGES Submittal for Bradley Lake Project Management Committee Approval 3/26/92 Utility July 91 August 91 September October 91 Totals Chugach Electric Association $55,717.48 $39,950.87 -0- $7,336.78 $103,005.13 Golden Valley Electric Association 65,203.00 -0- -0- -0- 65,203.00 Homer Electric Association 25,310.62 13,959.48 -0- -0- 39,270.10 Municipality of Anchorage 2,684.41 -0- -0- -0- 2,684.41 $148,915.51 $53,910.35 $7,336.78 $210,162.64 92Q1\IT2609(1) INFWHIV