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HomeMy WebLinkAboutBPMC Meeting - June 16, 1992 1RECORD COPY FILE NO TRO_3- Li ® witaw J BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE June 16, 1992 CALL TO ORDER Chairman Kelly called the Bradley Lake Hydroelectric Project Management Committee to order at 10:15 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 Gloria Manni, Alternate Representative Chugach Electric Association David L. Highers, Designated Representative Golden Valley Electric Association Mike Kelly, Designated Representative and Chairman City of Seward Paul Diener, Designated Representative Homer Electric Association Dave Fair, Alternate Representative Matanuska Electric Association Ken Ritchey, Designated Representative Municipal Light & Power Tom Stahr, Designated Representative Others Present: Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerrit David Burlingame, Chugach Electric Association Tom Lovas, Chugach Electric Association ¢:\dburger\word \minutes\pmc\6-92 BPMC Meeting June 16, 1992 page 2 of 8 John Cooley, Chugach Electric Association Gene Bjornstad, Chugach Electric Association Bradley Evans, Chugach Electric Association Bob Hufman, AEG&T Dave Calvert, City of Seward Tim McConnell, Municipal Light & Power Pete Fraser, Municipal Light & Power Bob Price, Municipal Light & Power Moe Aslam, Municipal Light & Power Brent Petrie, Alaska Energy Authority Stanley E. Sieczkowski, Alaska Energy Authority David R. Eberle, Alaska Energy Authority Denise Burger, 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 with the following additions: 13B. APPOINTMENT OF NOMINATING COMMITTEE 13C. BRADLEY CONSTRUCTION COST AUDIT 13D. SECTION 31 FUND BALANCE 13E. DIVISION OF INFORMATION SERVICES 13F. BRADLEY ISSUES IN FRONT OF APUC RELATED TO HEA AND CEA 5. APPROVAL OF MINUTES The minutes of the April 28, 1992 meeting were approved as submitted. 6. TECHNICAL COORDINATION SUBCOMMITTEE REPORT Dave Burlingame reported that the TCS had not met since the last BPMC meeting. There were no questions or comments directed to the TCS. ¢:\dburger\word\minutes\pmo\6-92 BPMC Meeting June 16, 1992 page 3 of 8 7. INSURANCE SUBCOMMITTEE REPORT Brent Petrie reported that the Insurance Subcommittee had not met since the last BPMC meeting, however Bradley insurance has been renewed at the same cost as last year, which is within budget. 8. BUDGET SUBCOMMITTEE REPORT Mr. Ritchey stated that the Budget Subcommittee has met several times and the disagreement over AEA administrative costs remains. Mr. Ritchey noted that although the utilities and AEA desired to resolve the problem, both sides were still far apart. Chairman Kelly confirmed that notice of intent to sue over the amount of AEA administrative costs has been sent to AEA. Mr. Highers expressed concern that the budget numbers/differences were unclear. It was noted by Mr. Saxton that the utilities would be defining those numbers at their meeting later in the day. Noting this year's similarity to last year's budget adoption process, Chairman Kelly commented that the litigation procedure would ultimately be in the best interest of both parties. Establishing firm guidelines now would prevent yearly repeats of this problem. Ms. Manni stated AEA was firm in its interpretation of the Power Sales Agreement and felt it was entitled to charge the utilities for the disputed costs. Clarifying that each party understood the position of the other, Chairman Kelly noted that Mr. Ritchey would report on today's utility meeting on the budget issue to the Energy Authority. Topics to be discussed at today's meeting would include an anticipated time frame and the utilities' general authority to sue. Mr. Saxton noted that the utilities were obligated under the Power Sales Agreement to make payments in accordance with AEA's FY93 budget regardless of the pending litigation on the issue. 9. AGREEMENT SUBCOMMITTEE REPORT A. TRANSMISSION FACILITY MAINTENANCE AGREEMENT BETWEEN AEA AND AEG&T Mr. Sieczkowski reported that the language of the agreement had been refined and was in the final stages of review by HEA's attorney. e:\dburger\word\minutes\pmeo\6-92 BPMC Meeting June 16, 1992 page 4 of 8 10. B. FACILITIES INTERCONNECTED DISPATCH AGREEMENT BETWEEN AEA AND HEA The final draft of the agreement is with HEA awaiting their comment. Dave Fair stated that the draft agreements had not yet been completed due to a heavy work load at HEA. Mr. Fair anticipates that the agreement will be ready for presentation to the BPMC at its next meeting. Cc. SOLDOTNA SUBSTATION RIGHT OF ENTRY AGREEMENT The Energy Authority is awaiting comments on the draft agreement from CEA and HEA. Mr. Sieczkowski anticipates this agreement will also be ready for presentation to BPMC at its next meeting. An Agreement Subcommittee meeting will be called to review the agreements prior to the next BPMC meeting. OPERATION AND DISPATCH SUBCOMMITTEE REPORT Mr. Sieczkowski distributed the draft meeting minutes of the June 10, 1992 O&D Subcommittee meeting (Attachment 1). Currently, Bradley is generating 90 megawatts during the day, dropping to 50 megawatts at night. At this date, the lake elevation is at 1106.3 feet, rising from 1104 feet last week. Referring to the outage of June 3, 1992, Mr. Sieczkowski assured the BPMC that the DSM will be maintained in the proper mode. ! Mr. Sieczkowski stated that installation of radio equipment at the remote sites is progressing. The transfer of $250,000 from AEA to the Division of Information Services for the microwave communications upgrade has not yet been approved. The issue was not addressed at the June 15, 1992 Legislative Budget and Audit Committee meeting. Noting resistance to the request from Representative Kay Brown, Mr. Sieczkowski asked for support from the utilities. Ken Ritchey will request Representative Ron Larson, chairman of the LB&A Committee to review the issue and take appropriate actions to avoid further delays. Mr. Sieczkowski reviewed year end energy generation figures and reservoir levels presented at the O&D meeting. It was noted that if the 47,000 acre feet ! Draft Operation and Dispatch Subcommittee Meeting Minutes, June 10, 1992, page 3. ¢:\dburger\word\minutes\pmo\6-92 BPMC Meeting June 16, 1992 page 5 of 8 11. of ponded water had been used, it would have equaled the allocated amount of energy. Installation of a common ring-down circuit (tying CEA, HEA, GVEA, MBA, and ML&P dispatch centers together) to avoid a repeat of the communications problems that occurred during the June 3, 1992 outage was discussed by the O&D Subcommittee. The Subcommittee approved recommendation of the common ring-down circuit. Mr. Sieczkowski anticipates having cost information and possibly a proposal ready for consideration at the next BPMC meeting. In response to comment by Mr. McConnell, Mr. Sieczkowski noted that spin had been discussed at the O&D meeting. The consensus of the subcommittee was that the Scheduling & Allocation Agreement language was clear and no further clarification was needed. Reading from the meeting minutes, Mr. Sieczkowski stated, "Available spin is based on, and directly proportional to, the utility's project share." The O&D Subcommittee did not recognize a need to change or modify the language. Mr. McConnell noted that the 27 megawatt spin limit number is an interim number based on PTI studies and was subject to change as results of additional PTI studies become available. REVIEW OF PROJECT STATUS Mr. Eberle reported that ABB has completed Phase I of the Static Var Compensator System (SVC) contract work at the Daves Creek and Soldotna substations. Phase II work (installation of grounding mats, foundations, and putting up the building), now underway, was awarded to City Electric. The simulator testing is scheduled to take place July 20, 1992 in Switzerland. Representatives from SWEC, PTI, AEA and the TCS will witness the testing. AEA and Fuji have reached a settlement on the efficiency issue. The settlement was for $200,000.00, which was the upper end of the ‘present worth' estimates for efficiency lossess. The only remaining issue requiring Fuji participation is bearing oil mist getting into some of the equipment. Filter systems are being tried to resolve the problem. An electronic precipitator may be tried as well. The DECnet problems have not yet been resolved. AEA is ready "to go up the Landis & Gyr chain of command" if the problems are not resolved soon. ¢:\dburger\word\minutes\pmeo\6-92 BPMC Meeting June 16, 1992 page 6 of 8 12. OLD BUSINESS A. SPINNING RESERVES/UNDER FREQUENCY LOAD SHEDDING - UPDATE Tom Lovas reported that the ASCC Reliability Criteria Committee is in the process of preparing a statement of its philosophy. The committee is investigating the possibility of hiring a consultant from NERC who's area of expertise is reliability assessment and in particular, equity and allocation issues. ASCC expects to receive a scope of work within the next two weeks. Completion of the Under Frequency Load Shedding Study has been delayed until July 15, 1992 due to PTI's involvement with other Bradley issues. Upon completion of the Under Frequency Load Shedding Study (with Bradley cases) for the IOC, the ASCC is planning a new series of tests specifically developed for the ASCC. The new series of tests will investigate unconstrained generations of the system under a range of alternatives. It is anticipated that this work will be funded by the ASCC. Costs are expected to be around $4,000 - $5,000 for the NERC consultant and as much as $30,000 for the PTI work. HEA BRADLEY ECONOMY SALES TO GVEA - UPDATE No comment or discussion was brought before the BPMC on this issue. 13. | NEW BUSINESS A. SECTION 31 FUND BALANCE Mr. Saxton noted that at the time the power sales agreement was negotiated, the utilities requested that utility costs related to the construction of the Bradley Project be included in the bond sale to allow capitalizing the cost over the life of the bond. These costs (designated Section 31 costs) are now nearing the bond provision of $1,655,000.00. A breakdown by utility of Section 31 costs was provided to the committee (Attachment 2). The current available fund balance was noted at $67,479.94 (excluding costs expected to be brought before the BPMC for approval during this meeting.) Mr. Saxton anticipates that the remaining Section 31 balance will be used within the next two months. At that time, costs approved as BPMC expenses will have to be ¢:\dburger\word\minutes\pmo\6-92 BPMC Meeting June 16, 1992 page 7 of 8 paid out of the committee's O&M budget. Mr. Saxton stated that the FY92 and FY93 O&M budgets both provided for the utility expenses, however no FY92 money had been used. APPROVAL OF COMMITTEE EXPENSES A chart of Bradley Lake related utility expenses for March through May 15, 1992 was distributed to the committee (Attachment 3). Mr. Highers motioned, seconded by Mr. Ritchey, to approve reimbursement of the submitted utility costs. The motion was approved unanimously without comment or discussion. APPOINTMENT OF NOMINATING COMMITTEE Chairman Kelly reminded the committee that new officers would be elected at the July meeting. Without objection, Chairman Kelly appointed Dave Highers, Chairman, Tom Stahr, and Ken Ritchey to serve as a nominating committee. The nominating committee was tasked to provide its proposals for next year's officers at the July BPMC meeting. BRADLEY CONSTRUCTION AUDIT Chairman Kelly suggested that this was an appropriate time for the BPMC to give consideration to a construction cost audit of the Bradley Project noting that, although not required, audits were traditionally done at the end of construction. Mr. Saxton informed the committee that no express provision had been included in the bond agreement for an audit and that, if an audit was requested and treated as a project cost, the utilities were obligated to pay fifty percent of the cost. Ms. Manni stated that the project had been audited in sections and stated that an additional audit would not add information. Chairman Kelly requested Ken Ritchey's budget committee review AEA's numbers to assure the utilities that audits had been done. Chairman Kelly speculated that an additional formal audit would not be needed, however stated that, if an audit was desired, this was the time to make that determination. The item will be discussed further at the next BPMC meeting. DIVISION OF INFORMATION SERVICES Previously discussed under Item 10. e:\dburger\word\minutes\pmo\6-92 BPMC Meeting June 16, 1992 page 8 of 8 14. 15. F. BRADLEY ISSUES BEFORE THE APUC RELATED TO HEA AND CEA CEA and HEA are working to resolve their dispute. The general consensus was that it would be prudent for the dispute to be settled without the APUC. Tom Stahr suggested that resolution of the dispute might be addressed through independent arbitration. Ms. Manni introduced discussion on the Bradley project construction fund balance, informing the committee that attempts were being made by legislators to re-appropriate the state's fifty percent share of the under-run funds. Based on the fact that the project is not yet entirely complete, the Energy Authority has made a recommendation to the Governor opposing the re-appropriation at this time. Ms. Manni suggested the utilities may wish to contact their legislators regarding this issue. A copy of the Energy Authority's Veto Analysis will be forwarded to the utilities. COMMUNICATIONS A. SCHEDULE NEXT MEETING July 23, 1992 10:00 a.m. CEA Training Room ADJOURNMENT There being no further business, the committee adjourned at 11:05 a.m. Mes Mike Kelly, Chairman Brent N. Petrie, Secretary ¢:\dburger\word minutes \pmo\6-92 DRAFT BRADLEY LAKE HYDROELECTRIC PROJECT OPERATIONS & DISPATCH SUBCOMMITTEE MEETING June 10, 1992 The subcommittee met in the Alaska Energy Authority conference room at 10:00 a.m. In attendance were: 1.0 2.0 Subcommittee Members: Stanley E. Sieczkowski, Alaska Energy Authority Brad Evans, Chugach Electric Association Doug Hall, Anchorage Municipal Light & Power Marvin Riddle, Golden Valley Electric Association Sam Matthews, Homer Electric Association Myles Yerkes, Homer Electric Association Participating Utility Representatives and Visitors: Dave Burlingame, Chugach Electric Association Brian Kingle, Chugach Electric Association Eric Marchegiani, Alaska Energy Authority Larry Wolf, Alaska Energy Authority Denise Burger, Alaska Energy Authority ADOPTION OF MEETING MINUTES The meeting minutes of May 14, 1992 were approved as submitted. APPROVAL OF AGENDA The agenda was modified to include: 4.2C CLARIFICATION OF SCHEDULING 4.2D CLARIFICATION OF SPINNING RESERVE e:\dburger\word\minutes\o&d\6-92 ATTACHMENT 1 Operations & Dispaicu Subcommittee Meeting June 10, 1992 page 2 3.0 | SUBCOMMITTEE CORRESPONDENCE The following were distributed at the meeting: Bradley Lake Power Loadings (June 1992 - May 1993) (Eric Marchegiani) Bradley Lake Hydroelectric Project, Elevation vs. Volume (Eric Marchegiani) Bradley Lake Use Allocation (Eric Marchegiani) Bradley Lake Elevation /with graph (Eric Marchegiani) The following was noted but not distributed at the meeting: Fax from Brian Kingle to Stan Sieczkowski regarding operation figures. 3.1 BRADLEY PROJECT UPDATE A. e:\dburger\word\minutes\o&d\6-92 OPERATIONS The calendar year-to-date generation is 171,500 megawatt hours. Radio Communications: The Division of Information Services (DIS) has installed new radios. The lower Bradley River USGS gage site is now working and needs to be calibrated by USGS. Communications to the upper Bradley RTU's will be available after installation of additional communication line hardware within the next two weeks. The Nuka repeater problem is being worked on by DIS. Data-link: DIS is evaluating the problem. Dave Eberle is coordinating resolution of the problem with SWEC, Landis & Gyr, AEA, and DIS. Operations & Dispatcn Subcommittee Meeting = June 10, 1992 page 3 Microwave Upgrade: Approval of the transfer of $250,000 to the DIS for the microwave upgrade is expected at the next Legislative Budget and Audit meeting on June 15, 1992. Outage: Causes of the June 3, 1992 outage are being investigated by CEA. Brad Evans provided a synopsis of outage events to the subcommittee. Discussion followed on the rendered ineffectiveness of the digital system monitor (DSM) and the communications problems that occurred between the utilities. Stan Sieczkowski recognized operator responsibility for placing a DSM switch in the graphic mode. The subcommittee was assured that corrective action would be taken to prevent a repeat of the action. Discussion focused on the installation of a common ring-down circuit as a solution to the communication problem. General consensus was formed among the subcommittee members in support of pursuing installation of a common ring-down circuit. CEA will recommend this plan in the outage report expected to be issued next week. CEA noted it will also be issuing an operations bulletin on restricted line outages, adding that, as much as possible, accommodations would be made to facilitate HEA conductor repairs. 4.0 WORK SESSION 4.1 OPERATING LIMIT CRITERIA Marvin Riddle motioned, seconded by Brad Evans that the subcommittee accept the recommendations to replace the minimum levels on page 17 of the Dispatch Operations Summary with the BPMC approved minimums. The motion was approved without objection. e:\dburger\word\minutes\o&d\6-92 Operations & Dispatcn Subcommittee Meeting June 10, 1992 page 4 4.2 | ALLOCATION & SCHEDULING PROCEDURES A. e:\dburger\word\minutes\o&d\6-92 STORING WATER CRITERIA Eric Marchegiani noted the water year on the spread sheets distributed to the subcommittee had been modified to reflect the water year as defined in the Operations & Dispatch Agreement (June through May). It was also noted that if conditions remain as anticipated, the June 1 ponded water (47,033 acre feet) will virtually equal the unused reservoir (47,808 acre feet). It was recommended that a method to show any energy carryover into the next year be established. Brian Kingle and Eric Marchegiani will develop an accounting procedure plan to present to the subcommittee. EXHIBIT B - DESCRIPTION OF PROJECT OPERATING CRITERIA Postponed until next meeting. CLARIFICATION OF SCHEDULING Doug Hall expressed ML&P's concern to the subcommittee that the "side deal" between GVEA and CEA was not in compliance with the Scheduling & Allocation Agreement. Discussion among all other subcommittee members favored a different interpretation of the agreement. The consensus of the remainder of the subcommittee was that the agreement language was clear, giving each utility the right to barter, give away, or sell its share of capacity. It was determined that no further clarification was needed. CLARIFICATION OF SPIN Spin is limited to 27 megawatts. Available spin is based on, and directly proportional to, the utility's project share amount. Discussion resulted in the general conclusion that the utilization of project spin was a railbelt utility issue. Operations & Dispaicu Subcommittee Meeting June 10, 1992 page 5 5.0 | SUBCOMMITTEE ACTIONS AND RECOMMENDATIONS RING - DOWN CIRCUIT Brad Evans motioned, seconded by Marvin Riddle that the Operations & Dispatch Subcommittee recommend the Bradley PMC approve funding for the installation of a common ring-down circuit at the designated site of each participating utility. The motion was approved without objection. The total cost was estimated to be roughly $15,000 - $20,000 ($3,000 - $5,000/site). 6.0 |NEXT MEETING DATE AND LOCATION Tuesday, July 14, 1992 10:00 a.m. Alaska Energy Authority Conference Room e:\dburger\word\minutes\o&d\6-92 OoVl BY:AK CACRUT ALINURI II + O-20-UZ - 14-U3 Alaska Ener, » aN CACKRUL ALINUNI II ATTACHMENT 2 Authority Bradley Lake Hydroelectric Project Section 31 Costs er ——__—_—_, Date Number AmountPaid _| 386.14 409,684.00 2,318.30 | 997.68 1,181.69 _ 6,627.45 450,247.00 923.33 3,261.30 2867.60 atanuska Electric Association, Inc. August 28, 1990 U3 65,873.00 Municipal Light & Power | August 28, 1990 US 288,324.00 ovember 15, 1991 faa 5,606.68 __ ity of Seward a +t oot August 1, 1991 U16 2,074.16 | March 15, 1990 en) BP170__| —s20i«.67_ March 15, 1991 =e Ull ae August 28, 1990 U6 16,079.00 eptember 3, 1991 U18 329.33 November 15, 1991 U24 $09.99 May 1, 1992 U3] 660.52 May 15, 1992 U33 146.78 | 91Q3\TI1322(1) Prepared by William J. Sobolesky, May 26, 1992 JUD 220 UUs SV Ol AN LMAUI ALi ' Joeuvue + At°Uy *) AN LMA ALUN JUN 220 UUlder 2 Req. i Date Number Amount Paid a es ee Ater, Wynne, Hewitt (legal fees August 1, 1991 U14 32,415.48 March 15, 1990 21,139.42 October 1, 1991 U20 17,480.33 November 15, 1991 U25 13,001.64 March 16, 1992 U27 16,670.94 a’ 1992 028 Ct Total Costs to Date 1,587,520. p | __1,655,000.00 Available Budge Somes 479,94 91Q3\T31322(2) Prepared by William J. Sobolesky, May 26, 1992 ATTACHMENT 3 ATER WYNNE —— 222 S.W. Columbia HE W I Portland, Oregon 97201-6618 TT +503) 226-1191 DODSON Fax (503) 226-0079 & SKERRITT ORNEYS AT LAW RECEI _ June 4, 1992 VED JUN 0 & 1992 VIA FEDERAL EXPRESS ALASKA ENERGY AUTHORITY Brent Petrie Alaska Energy Authority 701 East Tudor Road Anchorage, AK 99510-0869 Re: Bradley Lake Utility Expenses Through May 15, 1992 Dear Brent: Enclosed is a revised chart of unreimbursed Bradley Lake costs that includes expenses submitted to Ater Wynne from the utility members. I have enclosed all documentation received along with documentation for legal fees and expenses incurred during the same time period. Let me know if you have any questions. Sincerely, ae G. Westby, Legal Assistant Encl. EGW\077egw. let Seattle, Washington Washington, D.C. San Francisco, California Affiliated offices in (206) 623-4711 (202) 785-0303 (415) 421-4143 Anchorage, Fairbanks Fax (206) 467-8406 Fax (202) 785-8676 Fax (415) 989-1263 and Juneau, Alaska SECTION 31 COSTS APPROVED AT BPMC MEETING __ Jowe Je, 1992 SIGNED: Wide CHUGACH: No costs submitted. GVEA: Includes cost information from February through April, 1992. HOMER: Includes cost information from February through April, 1992. MATANUSKA: Cost form claims zero expenses from December 15, 1991 through May 15, 1992. ML&P: No costs submitted. SEWARD: Includes cost information from January through April, 1992. ATER WYNNE: Includes legal fees and costs from through March 23, through April 30, 1992. SoRoersey EGWw\ BPM i UNREIMBURSED BRADLEY LAKE COSTS COSTS INCURRED March through May, 1992 As Submitted to Ater Wynne PROJECT COSTS J Al FINANCE TEAM ACTIVITIES A2 BPMC LEGAL AND FINANCE 81.26 Hy | | tl fi it i {te} ft te Ha | | tl ti] ft | lt He | | oe