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HomeMy WebLinkAboutBradley Lake PMC Regular meeting Minutes 09-26-2012BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING (via electronic media at the Alaska Energy Authority’s Aspen Room) Anchorage, Alaska September 26, 2012 MINUTES CALL TO ORDER Chair Evans called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 1:00 p.m., Tuesday, September 26, 2012, from the AEA Aspen Conference Room, Anchorage, Alaska to conduct the business of the Committee per agenda and public notice. ROLL CALL Cory Borgeson Golden Valley Electric Association (phone) Bryan Carey Alaska Energy Authority Harvey Ambrose Homer Electric Association Brad Evans Chugach Electric Association Don Zoerb Matanuska Electric Association (phone) Rick Miller Anchorage Municipal Light & Power (phone) PUBLIC ROLL CALL Burke Wick (CEA); Harvey Ambrose and Larry Jorgensen (HEA); Henri Dale (GVEA); Brian Bjorkquist (AGO); May Clark, Kim Lomen, Teri Webster, and Kelli Veech (AEA); Participating by phone: Mike Cunningham (CEA); Brad Janorschke (HEA); Don Zoerb (MEA); Ron Woolf, (GVEA); Kirk Gibson, McDowell Rackner & Gibson PC. Mr. Borgeson stated Henri Dale would vote on behalf of GVEA for this meeting. PUBLIC COMMENT There were no public comments. AGENDA COMMENTS/MOTION FOR APPROVAL Chair Evans requested Agenda Item 7B be added, “HEA proposal to discuss access and other energy matters on the Kenai Peninsula relative to Bradley Lake.” The agenda was unanimously approved as amended. APPROVAL OF MEETING MINUTES August 31, 2012 BPMC Minutes 9/26/2012 Page 1 of 4 The August 31, 2012 meeting minutes were unanimously approved as presented. Mr. Jim Posey (AML&P) joined the meeting by teleconference. 7. NEW BUSINESS 7A. Approve FY13 Budget Revision for R&C Funds for Battle Creek Mr. Dale moved that the Bradley Lake Project Management Committee (BPMC), as recommended by the Finance Committee, approve the Alaska Energy Authority to proceed with final design, construction costs, exhibits for final amendment application, project bid documents and continuation of USGS water gauging for the Battle Creek Diversion project up to $670,000 to be paid from the FY2013 R&C budget. Seconded by Mr. Posey. The motion was amended as follows: Move that the Bradley Lake Project Management Committee approve the Alaska Energy Authority to proceed with final design, construction costs, exhibits for final amendment, application, project bid documents and continuation of USGS water gauging for the Battle Creek Diversion project as Optional Project Work, in accordance with the opinion of Bond Counsel, in any amount of up to $670,000 to be paid from the Renewal and Contingency Reserve Fund, as recommended by the Finance Committee. Move further that any payments made from the Renewal and Contingency Reserve Fund under this motion be repaid by the Project Participants based on each Participant’s percentage in equal installments over a four-year period, as recommended by the Finance Committee. Move further that it is the BPMC’s intention to work with the Alaska Energy Authority to secure designation for the Optional Project Work amounts as “utility matching funds.” The amended motion was accepted by Mr. Dale. Mr. Ambrose wanted to confirm that the $670K was enough right now. Mr. Carey said yes, the field work is complete and on budget. A roll call was taken: City of Seward Absent Matanuska Electric Association Yes Chugach Electric Association Yes Homer Electric Association Yes Golden Valley Electric Association Yes Municipal Light & Power Yes Alaska Energy Authority Yes The motion passed unanimously. BPMC Minutes 9/26/2012 Page 2 of 4 7B. Homer Electric Association proposal to co-mingle unused capacity energy that could be generated at Nikiski, not needed by HEA, into the Bradley Pooled Energy and exported for certain conditions on guarantees of Bradley access over the Quartz Creek to the Soldotna line. Mr. Janorschke said he emailed the proposal document to the Railbelt managers for their review. He said HEA is still trying to iron out the details. He then turned the discussion over to Mr. Ambrose who explained the HEA draft proposal is meant to help solve the issue relative to the Soldotna-Quartz Creek line segment by the end of 2013. He said there are no provisions as to how the line will be utilized by the parties. It could be treated like a Bradley asset and be leased to BPMC for a possible five-year term, with the cost prorated based upon each participant’s share in Bradley, including HEA, for the operation and maintenance of the line. A key factor is AEA’s veto power with respect to the annual budget for its asset; HEA seeks the same veto power for its asset. The proposal would have the Bradley Participants (excluding HEA) purchase Surplus Energy from the Nikiski Power Plant. Surplus Energy from the Nikiski plant would be defined as the difference between a base loaded Nikiski Power Plant, non-duct fired, and the HEA system load. If HEA system load exceeds Nikiski base load there would be no surplus energy; but if lower than that amount it will be surplus energy. In any case, Surplus energy would be limited to 18 MWs. How the surplus energy would be used should be decided by the remaining five participants, excluding HEA, and could be based on existing participation in Bradley or reconfigured based upon the respective system sizes. Payment for the Surplus Energy would be an equivalent amount of water inventory transferred from the participants’ Bradley account to HEA’s Bradley account. Addenda and conditions would be attached which are not yet developed. A final condition would be similar to Chugach’s Bradley services agreement which is tied to Chugach’s Bradley dispatch agreement, HEA would want this lease tied to the O&M agreement they have for Bradley. HEA does not expect an answer today, only BPMC review. He said this has the potential to avoid tariffs and RCA actions, and requested BPMC review in a timely manner. Chair Evans said there’s an assignment out for a combination of legal and technical review on contractual issues related to Bradley access, so this matter will also be assigned to that group. It is hoped the review can be expedited and a solid position established. Mr. Zoerb requested the proposal emailed to him, as well as Mr. Griffith. Chair Evans said the counter parties should meet to review the proposal and come to a go/no go conclusion by Thanksgiving. Mr. Ambrose agreed. 8A. Operator’s Report Mr. Jorgensen said the lake level as of September 16 was 1181.4 feet and from Sept 16 through Sept. 23 rose 23 feet and continues to rise. The lake is spilling over the dam due to a large amount of rain fall. 1800 cfs went over the spillway last night. At the last meeting we reported trying to operate the governor in six needle control, which has been restored without the unit oscillating. When the tie to Anchorage was opened up, there were problems in Divider 1 Mode of operation in both units. When the units were in this mode they were not responding to control signals. We worked with VA Tech and Emerson to resolve the issue. When VA Tech supplied the Modbus interface they provided a set of parameters which included a Divider Bias. Emerson set up a control for this with the assumption it was similar to a valve limiter. Further investigation found that VA Tech should never have put the Bias into the Modbus interface and that the Divider Bias was to be set at a constant value of 10% whereas the DCS was driving it to 100% after the unit came on-line. VA Tech has sent a new controls load with the bias removed BPMC Minutes 9/26/2012 Page 3 of 4 from the Modus link and Emerson has provided instructions to remove their logic affecting the bias. These modifications will be made as soon as it is scheduled with Dispatch. Chair Evans said it sounded reasonable and the operator’s will work the fix as soon as possible, due to more expected storms. 8B. Update on Battle Creek Diversion Project Bryan Carey said that the field work on Battle Creek was completed on time September 15. Archeological survey was done; nine borings were completed. The draft license amendment will be submitted in October upon completion of two exhibits, with a 90-day agency comment period before submission to FERC. We will request draft license conditions from the agencies at that time and we will meet with them to discuss these. The objective is to submit the Final License application with agency concurrence on the conditions. The Final License application will be submitted in the spring. Pre-site visits are planned for contractors in the summer or fall. Bids can be taken through the winter of 2013, with a contractor selected by spring 2014 and construction started by the summer. The draft license will be routed to the BPMC for their review prior to submission to FERC. 9. Next Meeting Date Depending on the progress of the tasks assigned, the next meeting will be at the call of the Chair, but prior to December, 2012. 10. Adjournment The meeting adjourned at 1:43 p.m. Bradle Attest: Bryan Carey Alaska Energy Authority, S' BPMC Minutes 9/26/2012 Page 4 of 4 Bradley Lake Project Management Committee Meeting Tuesday, December 18, 2012 Agenda Item: 7A MOTION: Move that the Bradley Lake Project Management Committee accept the fiscal year 2012 Audit Report and approve a total refund of $1,568,635.67 to the utilities. This is broken down as: $794,737.94 Operating & Maintenance $773,897.73 Renewable & Contingency fund Move. oe Grif Hy Second: Hac Voy Aubrose. py toon Zonh Bradley Evans, Chair\ Attest: Z 2 Bryan ey Alaska Energy Authority, Secretary Bradley Lake Project Management Committee Meeting ALASKA ENERGY AUTHORITY Regular Meeting - Teleconference Public Notice Bradley Lake Project Management Committee Notice is hereby given that the Bradley Lake Project Management Committee will hold a regular meeting on Wednesday, September 26, 2012 at 1:00 p.m. For additional information contact Brad Evans, Chairman. This meeting will be conducted by electronic media pursuant to AS 44.62.310 at the following location: Alaska Energy Authority Aspen Conference Room, 813 West Northern Lights Boulevard, Anchorage, Alaska; a teleconference line has been set up for those unable to attend in person. Dial 1-800-315-6338, Enter Code 3074#. The public is invited to attend. The State of Alaska (AEA) complies with Title ll of the Americans with Disabilities Act of 1990. Disabled persons requiring special modifications to participate should contact AEA staff at (907) 771-3000 to make arrangements. Attachments, History, Details Attachments Details None Department: Revision History Category: Created 9/17/2012 6:51:51 AM by mdclark1 Rub-Gaegony Modified 9/17/2012 2:51:52 PM by mdclark1 Location(s): Modified 9/19/2012 9:44:46 AM by mdclark1 Project/Regulation #: Publish Date: Archive Date: Events/Deadlines: Commerce, Community and Economic Development Public Notices Anchorage 9/17/2012 9/27/2012 9/26/2012 5:00am