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HomeMy WebLinkAboutBPMC Meeting November 20, 1992 2Alaska Energy Authority RECORD UOPY MEMORANDUM Fae 1 DATE: November 4, 1992 TO: Bradley Lake Hydroelectric Project Project Management Committee as a? )/ mega FROM: Brent N. Petrie BALE Vow Secretary SUBJECT: Project Management Committee Meeting November 20, 1992 The next meeting of the Bradley Lake Project Management Committee is scheduled Friday, November 20, 1992. The meeting will begin at 10:00 a.m. in the Training Room at Chugach Electric Association, Anchorage. The following items are enclosed for your information and review: ° Agenda - November 20, 1992 BPMC Meeting ° Draft Minutes - October 9, 1992 BPMC Meeting ° Approved Minutes - August 24, 1992 BPMC Meeting Please provide any comments regarding the upcoming November 20, 1992 BPMC meeting agenda items to Chairman Highers. DB:BNP:db Mr. Everett P. Diener City of Seward 5th & Adams P.O. Box 167 Seward, Alaska 99664 Mr. David L. Highers Chugach Electric Association 560I Minnesota Drive P.O. Box 196300 Anchorage, Alaska 99519-6300 Mr. Michael P. Kelly Golden Valley Electric Association 758 Illinois P.O. Box!1249 Fairbanks, Alaska 99707 Mr. Fred Arvidson Perkins Coie 1029 W. 3rd Avenue, Suite 300 Anchorage, Alaska 99501 Mr. James Hall Matanuska Electric Association 163 Industrial Way P.O. Box 2929 Palmer, Alaska 99645-2929 Mr. S.C. Mathews Homer Electric Association 3977 Lake Street Homer, Alaska 99603 Mr. Ron Saxton Ater Wynne Dobson & Skerritt 225 S.W. Columbia, Suite 1800 Portland, OR 97201-6618 90Q1\D0068L{1) Mr. Ken Ritchey Matanuska Electric Association 163 Industrial Way P.O. Box 2929 Palmer, Alaska 99645-2929 Mr. N. L. Story Homer Electric Association 3977 Lake Street Homer, Alaska 99603 Mr. Thomas R. Stahr Municipal Light and Power 1200 E. 1st Avenue Anchorage, Alaska 99501-1685 Mr. Eugene N. Bjornstad Chugach Electric Association 560I Minnesota Drive P.O. Box 196300 Anchorage, Alaska 99519-6300 Mr. John Cooley Chugach Electric Association 560I Minnesota Drive P.O. Box 196300 Anchorage, Alaska 99519-6300 Mr. Bob Hansen Golden Valley Electric Association 758 Illinois P.O. Box71249 Fairbanks, Alaska 99707 Mr. Kurt Dzinich 4511 N. Riverside Drive Juneau, Alaska 99801 Mr. Robert Hufman Utilities Consulting Services 1018 Galena Street Fairbanks, Alaska 99709 Mr. David Burlingame Chugach Electric Association, Inc. P.O. Box 196300 Anchorage, Alaska 99519-6300 Mr. Tom Lovas Chugach Electric Association, Inc. P.O. Box 196300 Anchorage, Alaska 99519-6300 90Q1D0068L(1) Sark: Research Agency P.O. Box Y Juneau, Alaska 99811-3100 Mr. Hank Nikkels Anchorage Municipal Light & Power 1200 East 1st Street Anchorage, Alaska 99501 Mr. Bob Orr Golden Valley Electric Association 758 Illinois P.O. Box?1249 Fairbanks, Alaska 99707 10. 11. 12. 13. 14. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA November 20, 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 MEETING MINUTES - October 9, 1992 TECHNICAL COORDINATING SUBCOMMITTEE REPORT BUDGET SUBCOMMITTEE REPORT A. Bradley Lake Construction Cost Review - Update B. FY93 Budget, AEA Administrative Costs - Update AGREEMENTS SUBCOMMITTEE REPORT OPERATION AND DISPATCH SUBCOMMITTEE REPORT REVIEW OF PROJECT STATUS OLD BUSINESS A. Spinning Reserves/Under Frequency Load Shedding Update B. Bradley Scheduling vs. Spin Requirement NEW BUSINESS A. Approval of Committee Expenses B. Approval of Utility Agreements CG. Approval of Amended Allocation & Scheduling Procedures, Section 5 D Approval of Exhibit B, Allocation & Scheduling Procedures COMMUNICATIONS A. Schedule Next Meeting ADJOURNMENT Highers Burlingame Ritchey Sieczkowski Sieczkowski Eberle Lovas Saxton Petrie Sieczkowski Sieczkowski Sieczkowski BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE DRAFT MEETING MINUTES October 9, 1992 1. CALL TO ORDER Chairman Highers 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. 2. ROLL CALL Alaska Energy Authority Ron Garzini, Designated Alternate Representative Chugach Electric Association David L. Highers, Designated Representative and Chairman Golden Valley Electric Association Mike Kelly, Designated Representative City of Seward Paul Diener, Designated Representative Homer Electric Association Norm Story, Designated 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 \pmo\10-92 DRAFT BPMC Meeung Minutes October 9, 1992 Page 2 of 10 John Cooley, Chugach Electric Association Gene Bjornstad, Chugach Electric Association Bradley Evans, Golden Valley Electric Association Bob Hufman, AEG&T Dave Fair, Homer Electric Association Dave Calvert, City of Seward Tim McConnell, Municipal Light & Power Bob Price, Municipal Light & Power Stanley E. Sieczkowski, Alaska Energy Authority Larry Wolf, Alaska Energy Authority Denise Burger, Alaska Energy Authority Dennis Lewis, Petersburg Municipal Power & Light 3s PUBLIC COMMENT There being no public comment, the meeting continued to the next agenda item. 4. AGENDA COMMENTS Item 12 B, APPROVAL OF UTILITY AGREEMENTS, was removed from the agenda. 5. APPROVAL OF MINUTES - August 24, 1992 Mr. Stahr objected to the inclusion of Attachment 2, Bradley Lake Operations and Dispatch Summary of Meeting on August 18, 1992 for Bradley Project Managers' Committee, as part of the approved permanent record of the August 24, 1992 PMC meeting. Mr. Stahr took exception to the following statement contained in paragraph eight: "After a lengthy discussion of scheduling procedures, it was the consensus of the committee that Bradley was agreed to, by the managers, to be operated as an energy project." Mr. Stahr firmly stated that he was not a part of that consensus and that the utilities had purchased a lot more than energy (i.e. capacity and spin.) Mr. Kelly, offering his comments on behalf of the remaining utility managers, agreed that the language used in the summary was incorrect. Mr. Stahr moved that the Bradley PMC meeting minutes of August 24, 1992 be approved with the exception of the August 18, 1992 O&D Meeting Summary (Attachment 2), The motion was seconded by Ron Garzini. Mr. Ritchey ¢:\dburger\word\minutes \pmo\10-92 DRAFT BPMC Meeting Minutes October 9, 1992 Page 3 of 10 questioned whether the Bradley PMC had the authority to approve the O&D Subcommittee meeting summary. Mr. Saxton clarified that if the summary was an accurate account of the O&D Subcommittee meeting, then the PMC should not change it, but if the summary was inaccurate, then the O&D Subcommittee, itself, should change it. Mr. Saxton stated that the Bradley PMC had the right to disagree with the summary. Responding to Mr. Saxton's comments, Mr. Sieczkowski confirmed that the relationship of energy and capacity was discussed at the O&D Subcommittee meeting and that the summary reflected the discussion. With the understanding that the BPMC record will reflect the managers' disapproval of the O&D Subcommittee statement, the August 24, 1992 BPMC meeting minutes were approved by acclamation. 6. TECHNICAL COORDINATION SUBCOMMITTEE REPORT Dave Burlingame distributed a report (synopsis) of the TCS meeting held October 8, 1992 (Attachment 1). Mr. Burlingame informed the PMC that the DECnet had been installed but had not yet been put into operation. Mr. Burlingame noted that the SVC work was on schedule (the transformer, reactors, and buswork had been installed.) The contractor has tentatively requested an outage of the 115 kV transmission system October 16, 1992 to hook up the SVC. It was reported that the reservoir water elevation was significantly lower than projected for this time. Mr. Burlingame explained that AEA had uncovered a potential error in the lake level survey which, if verified, contributed to the lower than anticipated lake level. It was noted that AEA would be issuing a revised allocation schedule. Because of the discrepancies between the results of the actual SVC simulator tests and the Power Technology Incorporated (PTI) prediction, Mr. Burlingame stated that Stone & Webster Engineering Corporation (SWEC) had been requested to analyze both the ABB simulator test data and PTI studies. It was noted that the TCS utility representatives objected to the conclusions of SWEC's analysis due to the fact that SWEC used outdated PTI data. SWEC will continue to investigate the problem. Mr. Burlingame reported that the TCS had developed both short term and long term solutions to the Kenai oscillation problem. The TCS approved the implementation of two procedures to resolve the problem when the Kenai was ¢:\dburger\word\minutes\pmo\10-92 DRAFT BPMC Meeting Minutes October 9, 1992 Page 4 of 10 exporting more than 10 megawatts of power: (1) to automatically place the unit into deflector mode via SCADA and, (2) to disable the gain acceleration function within the governor. Mr. Burlingame noted that the second procedure would slow the needle response time (allowing more time for system response) resulting in the waste of some water. Mr. Burlingame reported that no short term solution to the oscillation problem had been identified for when the Kenai was importing power, or exporting less then 10 megawatts of power. SWEC is investigating possible short term solution options using the Bradley governor and is concurrently investigating long term solutions. It was noted that when the Kenai is importing more than 5 megawatts of power and is islanded, the oscillation will cause the Kenai to go through all three stages of load shed (effectively resulting in only one stage of load shed.) 7. BUDGET SUBCOMMITTEE REPORT Mr. Ritchey reported that there had been no official Budget Subcommittee meetings. However, the RFP for the construction cost audit was nearly ready to issue and the proposals were expected by the first of November 1992. Mr. Ritchey noted that the subcommittee would be reviewing a proposal for the audit of yearly operating expenses. Mr. Saxton stated that the PMC had authorized the expenditure of funds for the construction cost audit, but not the yearly operating cost audit. Mr. Ritchey clarified that funds for the yearly operating cost audit had already been approved as part of the fiscal year budget and that no additional approval was needed. Mr. Saxton recommended that the PMC address the upcoming fiscal year budget at the next meeting. 8. AGREEMENT SUBCOMMITTEE REPORT Mr. Sieczkowski distributed the Agreement List and Assignment Schedule, Updated October 8, 1992 (Attachment 2). Mr. Sieczkowski reported that HEA and AEA met October 2, 1992 and discussed the Soldotna Substation Agreement and Transmission Facilities Maintenance Agreement. New drafts of the agreements developed at that meeting were currently being reviewed by HEA, CEA, ABA, and the Agreement Subcommittee members. The Agreement Subcommittee was expected to meet later this month to review the draft agreements. The SVC Maintenance Agreement was currently being reviewed by the Energy Authority's attorney. In response to inquiry by Mr. Lovas, Mr. Sieczkowski noted that AEA was presently awaiting receipt of a revised draft of the Transmission Interconnect Agreement from HEA. ¢:\dburger\word\minutes \pmo\10-92 DRAFT BPMC Meeting Minutes October 9, 1992 Page 5 of 10 9. OPERATION AND DISPATCH SUBCOMMITTEE REPORT A summary of the October 2, 1992 O&D Subcommittee meeting was distributed (Attachment 3). Mr. Sieczkowski highlighted the following topics: Request for installation of kW metering on the station service system for better accounting of energy flows. Annual maintenance of both units scheduled for November 9 - 19, 1992 Modification of the fish water bypass release software program to improve system response time (in order to avoid violation of FERC minimum flow requirements.) Exhibit B, Allocation and Scheduling Procedures acted upon by the O&D Subcommittee will be presented under "NEW BUSINESS." Amendment to Allocation and Scheduling Procedures acted upon by the O&D Subcommittee will be presented under "NEW BUSINESS." Notification by CEA of a formal agreement between CEA and HEA for the purchase of scheduling rights (originally misstated as capacity and allocation at the October 2, 1992 O&D Subcommittee meeting.) In response to the CEA / HEA agreement, Mr. Sieczkowski stated the O&D Subcommittee requested clarification of whether HEA still had voting rights on the Subcommittee since HEA was no longer a scheduling utility. Chairman Highers pointed out that the Power Sales Agreement included all Bradley Lake participants (as opposed to scheduling utilities.) Mr. Saxton stated that the contract did not specify anything about the subcommittees, giving the PMC the authority to make those rules. Mr. Stahr stated that the utilities had purchased capacity and energy, not water allocation, further explaining that water allocation was an operational procedure. Mr. Story took exception to the language in the last paragraph on page 1 of the October 2, 1992 O&D meeting summary where it stated that CEA had purchased HEA capacity and water allocation. Mr. Story explained that, rather, CEA had purchased HEA scheduling rights. Mr. Stahr expressed concern over potential impact (if any) of the CEA / HEA agreement on the rights of the other purchasing utilities. Mr. Stahr suggested that the Bradley PMC assure the prevention of any infringement on another ¢:\dburger\word\minutes\pme\10-92 DRAFT BPMC Meeting Minutes October 9, 1992 Page 6 of 10 utility's rights or provide a mechanism for review of such agreements by all of the participating utilities. Mr. Kelly brought attention to the responsibility for spinning reserve, noting that CEA had originally taken the position that HEA was required to provide spinning reserve. Mr. Kelly raised the question of a utility's responsibility to carry spinning reserve if the utility assigned its scheduling right. Mr. Fair noted that the spinning reserve issue to which Mr. Kelly referred was a temporary Intertie Operating Committee (IOC) arrangement that would dissolve on January 1, 1993. Mr. Fair informed the PMC that HEA was preparing a letter explaining the HEA agreement with CEA. Mr. Fair explained that the agreement was a scheduling agreement and did not impact the "rights, obligation, cost, payment, etc. in relation to AEG&T's share of Bradley Lake associated HEA participation." Mr. Fair reiterated that HEA had only sold its right to schedule, noting HEA purposely avoided a power sale, kilowatt hour sale, or kilowatt sale. Mr. Kelly again questioned HEA's spinning reserve requirement stating that the issue of spinning reserve was "hooked" to the issue of scheduling and participant voting rights. Mr. Fair stated that HEA's spinning reserve requirement was taken care of by the agreement with CEA.! Mr. Fair further stated that HEA had no intent to modify its participation in the Bradley Lake Project. Mr. Kelly stated that if HEA was no longer obligated to spin, it would have an impact on the other participants. Mr. Lovas clarified that CEA's agreement with HEA pooled the resources of both utilities similar to its agreements with SES and MEA. Mr. Burlingame re-focused the discussion on the question raised at the October 2, 1992 O&D Subcommittee meeting regarding Bradley Lake participant voting rights. Mr. Burlingame phrased the following question: "Does CEA have the right to schedule 57% of the project, or does CEA schedule 31% + 12% + 13% + 1% of the project?" Mr. McConnell noted that it depended on which way CEA dispatched, explaining that if all the water of all the participants was depleted in proportion to their project share, there was no difference. If CEA however used all of one utility's share but still claimed 57% (for apportioning spin), there would be a "dramatic difference." Mr. Burlingame stated that the Allocation and Scheduling Procedure does not ! Mr. Stahr later stated that, by his interpretation of the Alaska Intertie Agreement, only utility participants had spinning reserve obligations (i.e. Eklutna and AEA have no spin obligations.) Mr. Lovas also confirmed this interpretation, stating that the generating utility (representing a pool of resources) was responsible for the spin obligation (i.e. CEA picked up the spin requirement for HEA.) ¢:\dburger\word\minutes \pmo\10-92 DRAFT BPMC Meeting Minutes October 9, 1992 Page 7 of 10 state that CEA must draw all shares down equally and pointed out that there were no operating restraints defined in the Allocation and Scheduling Procedure. Mr. Burlingame stated each utility would incur spinning reserve obligation if the participant shares were treated in an additive manner (i.e. 31%, 12%, 13% and 1%.) Mr. Kelly expressed concern over the possibility that utilities could avoid the spinning reserve requirement. Mr. Lovas noted that the combined spinning reserve obligation was not reduced, and that it was an allocation problem as opposed to an electrical problem. It was the general consensus of the PMC that a determination of the effect of the CEA / HEA agreement could not be made without further review of the actual contract or a contract summary. Mr. Lovas informed the Committee that the scheduling agreement would become public information within the next few days when it was filed as part of (APUC) Docket U 92-25. Mr. Stahr moved that no change be made to the voting rights and membership in the PMC sl mmittees, and that the "status quo" be maintained. The motion passed b a unanimous roll call vote. Mr. Kelly asked Mr. Saxton to research answers to the following questions: a Does Bradley require spin? Zs Do the arrangements between SES and MEA and CEA effect their spin requirement? 3. Does the new HEA / CEA arrangement effect their spin requirement? Mr. Fair pointed out that there is no spinning reserve obligation imposed by any of the Bradley Lake agreements, stating that it was an IOC issue. Mr. Burlingame clarified that, for now, CEA was carrying the extra spin. Mr. Burlingame, referring to the motion, asked if the "status quo" meant that CEA then operated 57% of the project. Mr. Burlingame explained that CEA would provide some water allocation to each participant that CEA scheduled for and would carry each participants spin obligation. Mr. Burlingame added that the water share of participants CEA scheduled for would not be depleted in proportion to their project share. Mr. McConnell noted that if the water was depleted at rates determined by CEA, entitlement to capacity and entitlement to spin changes dramatically. Mr. Burlingame disagreed, stating that CEA had never operated according to proportion of share. ¢:\dburger\word\minutes\pme\10-92 DRAFT BPMC Meeting Minutes October 9, 1992 Page 8 of 10 11. 12. 13. Mr. Stahr recommended that spin obligation and the selling of spin also be researched. Chairman Highers, siting the need to have several questions answered, asked Mr. Saxton to provide this information to the PMC. To ensure a response to all issues, Mr. Saxton responded with a plan to first put together a list of the questions that had been raised for review by the managers. A. BRADLEY SCHEDULING VS. SPIN REQUIREMENT This item was included in the discussion of Item 9, OPERATION AND DISPATCH SUBCOMMITTEE REPORT. REVIEW OF PROJECT STATUS In the absence of Dave Eberle, Mr. Wolf noted that information regarding project status was presented in the TCS report to the Committee (Item 6). OLD BUSINESS A. SPINNING RESERVES/UNDER FREQUENCY LOAD SHEDDING - UPDATE Mr. Lovas reported that the ASCC had met the day before and was continuing to make progress in its discussions of spinning reserve and load shed. The ASCC discussed the use of utility staff to perform technical studies and concluded that it was more timely and cost effective than using consultants. Mr. Lovas informed the PMC that the Intertie Subcommittee was close to finalizing a load shedding schedule proposal and that the ASCC had approved a $159,000 budget for the Reliability Criteria Subcommittee's work. NEW BUSINESS A. APPROVAL OF COMMITTEE EXPENSES Noting that documentation of the current expenses had been submitted to Brent Petrie, Mr. Saxton stated that future Committee expenses should be forward to Ken Ritchey (Chairman of the Budget Subcommittee). e:\dburger\word\minutes\pme\10-92 DRAFT BPMC Meeting Minutes October 9, 1992 Page 9 of 10 Mr. Saxton presented the following expenses to the PMC for approval: Homer Electric: $228.84 for TCS work $544.87 for PMC related activities Ater Wynne: $23,760 for July, August, and September legal expenses Mr. Saxton noted that the remainder of Section 31 funds would be depleted and a portion of these expenses would come directly from the Committee budget. Mike Kelly moved to approve the submitted expenses. The motion, seconded by Norm Story, was approved by unanimous roll call vote. APPROVAL OF UTILITY AGREEMENTS Deleted from the agenda. APPROVAL OF AMENDED ALLOCATION AND SCHEDULING PROCEDURES Mr. Sieczkowski distributed a revision to Section 5 of the Allocation and Scheduling Procedure (Attachment 4) and recommended action by the PMC. Additionally, Mr. Sieczkowski distributed a copy of the Exhibit B language to the Allocation and Scheduling Procedure (Attachment 5) and recommended that the PMC review it for consideration at the next meeting. Mr. Kelly moved that the Section 5 revision be approved. Ken Ritchey seconded the motion. Mr. Stahr asked if the proposed amendment would result in increased lead time on the scheduling. In response to Mr. Sieczkowski's answer that it would, Mr. Stahr expressed his opposition, stating that there was too much lead time now. Mr. Burlingame disagreed and pointed out daily changes could still be made to the schedule. Mr. Kelly motioned ni Mr. hr to table the previous motion until the next PMC meeting and allow CEA to implement the revised procedure in the manner described until then. The motion was approved by a unanimous roll call vote. 2 No action was taken on this motion. ¢:\dburger\word\minutes \pmo\10-92 DRAFT BPMC Meeung Minutes October 9, 1992 Page 10 of 10 D. HISTORICAL REVIEW OF PMC ACTIONS Mr. Saxton noted that a list of PMC actions delegating assignments to various subcommittees had been prepared and previously distributed to the utility managers (Attachment 6). It was noted that the subcommittees had not been given any authority to act independently of the PMC. 14. COMMUNICATIONS Mr. Kelly informed the PMC that Mr. Brad Evans had been appointed GVEA's alternate representative to the PMC. A. SCHEDULE NEXT MEETING Friday, November 20, 1992 10:00 a.m. CEA Training Room 15. ADJOURNMENT There being no further business before the committee, the meeting adjourned at 11:45 a.m. David L. Highers, Chairman Attest: Ronald A. Garzini, Designated Alternate Representative e:\dburger\word\minutes \pme\10-92 ATTACHMENT 1 CHUGACH ELECTRIC ASSOCIATION, INC. Anchorage, Alaska October 8, 1992 TO: Bradley Lake PMC FROM: David W. Burlingame, TCS Secretary SUBJECT: TCS Meeting Report The following is a synopsis of the TCS meeting held on October 8, 1992. SCADA SubCommittee has reviewed the DECNET installation at Bradley Lake. SWEC is waiting for the final points list to be received from Golden Valley and AML&P prior to implementing. SWEC has requested Landys & Gyr investigate alternative methods of supplying HEA with requested information other than the present design. Svc Project Status - The transformers at both sites are installed, reactors installed, switches and buswork installed and the valves are on-site. The Daves Creek SVC is tentatively scheduled to be connected to the power system October 16, 1992. The SVC is not scheduled to begin any testing until November. Bradley Lake Water Elevation - The water elevation is down significantly and project allocations are expected to be adjusted downward. SWEC/AEA found an error in the field survey which resulted in the water elevation at the dam being reported 2' lower than it actually is. svc Simulator Studies - SWEC presented an analysis of the analog and digital simulator studies ABB performed at AEA's request. The studies were performed due to the apparent discrepancy between the stability numbers found by ABB in their initial tests and the PTI numbers we are operating under. The utilities objected to the SWEC conclusion as SWEC was using numbers from a superseded PTI study and the not the numbers currently in use. SWEC will investigate further. SWEC was requested to run an additional case to ascertain the stability limit after the svc's are installed as this now appears to be in question. Kenai Oscillations - SWEC presented its findings an the cause of the Kenai oscillations and the recommended short term solutions. The committee accepted two of the recommendations with motions as follows: Motion 1 - Move to put one Bradley Lake unit in deflector automatically as soon as possible via Chugach's SCADA control upon detection of islanding to prevent or mitigate Kenai frequency oscillations. The above action has previously been implemented by Chugach and according to the SWEC studies, should prevent oscillation during those times when the Kenai is exporting more than 10 MW of power. Motion 2 - Move to disable the gain acceleration function within the Bradley governor to allow more time before the needle valve and deflectors equalize and begin the Kenai system frequency oscillations. The above action will be implemented by SWEC as soon as possible. The only detriment to the above is a small amount of water that is wasted on overfrequency conditions since it slows down the time it takes for the needles to close and match the deflectors, ie the units are running on their deflectors for a slightly longer period of time. The committee has not been able to identify any short term solutions which mitigate the Kenai loadshedding during import conditions. SWEC estimates that any import more than 5 MW will result in total Kenai loadshedding. SWEC was asked to investigate the possibility of automatically tripping a unit to deflector control on overfrequency as opposed to waiting for SCADA control. This may help the Kenai avoid further loadshedding during import conditions. SWEC recommended disabling AGC control for Bradley Lake during transient period immediately after islanding. Chugach will investigate and implement if possible. SWEC will investigate the possible long term solutions including the installation of a new governor control mode at Bradley Lake, new intertie, batteries, surge tanks etc. BRADLEY LAKE AGREEMENTS SUBCOMMITTEE AGREEMENT LIST AND ASSIGNMENT SCHEDULE UPDATED: October 8, 1992 COMPLETION AGREEMENTS DRAFT DATE DATE RESPONSIBILITY Dispatch Agreement 3-6-91 2-19-92 Tom Lovas between AEA and CEA 6-19-91 S. Sieczkowski 9-4-91 Maintenance S. Sieczkowski Agreement between Sam Mathews AEA and Maintenance Contractor Transmission Facilities 04/05/89 Sam Mathews Maintenance 08/06/89 S. Sieczkowski Agreement between 09/13/91 AEA and HEA 11/08/91 03/03/92 05/15/92 08/21/92 10/05/92 Allocation and 09/15/89 7/291 S. Sieczkowski Scheduling Procedures 10/90 O&D Members Exhibit A 12/91 3/92 Exhibit B 10/92 12/91 Exhibit C 11/91 12/91 Exhibit D 11/91 Deleted Transmission 06/21/91 Sam Mathews Interconnect 11/08/91 Stan Sieczkowski Agreement between 03/02/92 AEA and HEA 05/18/92 Communications 9/92 Afzal Khan Equipment MOU between AEA and Div of Infor Soldotna #1 Dispatch Done * Sam Mathews Agreement between CEA and HEA Transmission 3/7/89 Sam Mathews Capability Agreement between HEA and CEA, ML&P, AEG&T, GVEA a Dore not avai bole bradagre/ds9/91 ATTACHMENT 2 Organiz- ation CEA AEA AEA HEA HEA AEA AEA Utilities HEA AEA COMPLETION ORGANI 10. LE 12, IS; 14, 15! AGREEMENTS DRAFT DATE DATE RESPONSIBILITY ZATION Power Sales Agreement 12/8/87 between AEA, & CEA, GVEA, ML&P, AEG&T, HEA, City of Seward Wheeling of Electric 12/8/87 Power (Services Agreement) between CEA & HEA, GVEA, MEA ML&P, AEG&T, Seward Static Var 1/92 Afzal Khan AEA Compensator Systems 2/92 D. Burlingame AEA at Daves Creek and CEA Soldotna Maintenance Agreement between AEA and CEA Daves Creek Substation 8/91 3/92 S.Sieczkowski AEA 11/8/91 D. Burlingame CEA 3/2/92 Soldotna Substation 8/91 S. Sieczkowski AEA Right of Entry 11/08/91 Sam Mathews HEA Agreement between 03/02/92 D. Burlingame CEA AEA and HEA 03/27/92 05/18/92 08/06/92 08/21/92 10/02/92 Power Revenue Bond 9/7/89 AEA AEA Resolution ATTACHMENT 3 BRADLEY LAKE HYDROELECTRIC PROJECT OPERATION AND DISPATCH SUBCOMMITTEE OCTOBER 2, 1992 MEETING SUMMARY BRADLEY PROJECT OPERATION AND MAINTENANCE The Chugach Electric Association (CEA) dispatcher was requested to provide the generation schedule to the plant maintenance personnel. This will assist in maintenance scheduling to reduce joules and enable maintenance to be coordinated with dispatchers. Additional KWH metering on the station service system is desired for Bradley energy accountability. The weather station communications are still being put into service because new crystals were required. Deflector mode operating tests are scheduled for November 7 and 8, 1992. This is part of the investigation to determine why the oscillation occurred after islanding on the Kenai. Annual maintenance of the project units is scheduled for November 9-19, 1992. The fish releases require close monitoring. A software revision is necessary to prevent dropping below minimum required flows, Because of the four hour time lag from las at the dam and the recording of the flow at the lower Bradley River Gaging Station. Alaska Energy Authority (AEA) utilities and Division of Information Services (DIS) are working to complete installation of project communications. There is still a gap in direct communications from the dispatchers with personnel in the field. This needs to be resolved so the switchmen can be contacted directly by the dispatchers. Homer Electric Association (HEA), CEA, AEA and DIS are Svorking to correct this problem. COMMITTEE DISCUSSION AND ACTIONS The committee took action to recommend "Approval of the Allocation and Scheduling Procedures, Exhibit B Language, Presented in the CEA September 12, 1992 Memo as Modified." (Copy attached) The "Storing Water Criteria" proposal was presented and discussed. A discrepancy arose when the generation projections were presented. There was a substantial acre-foot storage accounting error in addition to a two foot transducer level indication error detected this past week. This discrepancy will be resolved and the projections updated for the dispatchers. The committee is to review the Storing Water Criteria proposal and discuss at the next meeting. Operating the Bradley Lake units in condenser mode was discussed. The consensus of the committee was to continue operating the system without running the unit in condenser mode unless requested by a utility. project will continue to te operated according to established saealeted and approved criteria. CEA and HEA have formalized an agreement for CEA to purchase HEA capacity and water allocation. Discussion followed and it was noted that clarification was needed from the Bradley Project Management Committee (BPMC) regarding HEA's spinning reserve obligation. 92Q4\NK3718(1) Page | of 2 ) Summary of October 2, 1992 Operation & Dispatch Subcommittee Meeting October 8, 1992 Another issue arose when this was discussed. "Since CEA has HEA's capacity and water allocation, and is therefore no longer a scheduling utility, does HEA have the right to vote on issues within the Operation and Dispatch subcommittee." This issue needs clarification from BPMC. SS:nk Attachment as Stated. 92Q4\NK3718(2) Page 2 of 2 DATE: TO: FROM: SUBJECT: ATTACHMENT 4 Alaska Energy Authority MEMORANDUM October 8, 1992 Bradley Lake Hydroelectric Project Project Management Committee Stanley E. Sieczkowski eal | Director Facilities Operation and Engineering Alaska Energy Authority Revised Allocation and Scheduling Procedure The following revision to the Bradley Lake Allocation and Scheduling Procedure was approved for recommendation to the Bradley PMC at the August 18, 1992 Operations and Dispatch Subcommittee meeting: "In the interim, Section 5, Project Scheduling, (b), Hourly Schedules of the Allocation and Scheduling Procedures, revised November 19, 1991 shall be changed to: The utilities' weekly schedule shall be submitted to the dispatcher no later than 1400 hours on Tuesday; a preliminary summary of schedule requests shall be distributed to all utilities no later than 1400 hours on Wednesday for review; the schedule shall be confirmed by the dispatcher no later than 1400 hours on Thursday; and implemented at 0001 hours on Saturday. (The energy week is established to be Saturday to Friday.)" The motion passed by unanimous roll call vote. DB:SES:db cc: Ronald A. Garzini, Alaska Energy Authority Brent N. Petrie, Alaska Energy Authority DATE: FROM: SUBJECT: Alaska Energy Authority MEMORANDUM October 8, 1992 Bradley Lake Hydroelectric Project Project Management Committee Stanley E. Sieczkowski =e Director Facilities Operation and Engineering Alaska Energy Authority Exhibit B - Allocation and Scheduling Procedure Exhibit B of the Bradley Lake Allocation and Scheduling Procedure was approved for recommendation to the Bradley PMC at the October 2, 1992 Operations and Dispatch Subcommittee meeting. Attached is a copy of the approved Exhibit B for your consideration. DB:SES:db ce: Ronald A. Garzini, Alaska Energy Authority Brent N. Petrie, Alaska Energy Authority ATTACHMENT 5 10/06/92 =: 16: 55 39077624540 CEA DISPATCH CTR oo2 ‘ Exhibit B The following sections are intended to replace the existing schedule B in the Allocations and Scheduling Procedures Turbine Operation The following schedule shall be used to determine the operation of the Bradley Lake generators, assuming both units are available for operation: Plant Schedule (MW) Speed Mode Condense Mode Notes Schedule< 10 MW no units none, one or both units #1 10 MW<schedule <20 MW one unit one unit #2 20 MW <schedule < 30 one unit one unit/no unit #3 Schedule > 30 MW both units no units Notes #1 - If any participant could utilize the spinning reserve from a unit or a second unit in the condense mode, one or both units will be operated in condense. If no utility requests the additional spinning reserve, only one unit will be operated in condense if required for voltage control unless a unit is changed to condense to avoid a shutdown. Notes #2 - depending on spin requirements, either one unit will be operated alone in the speed mode or both units will be operated, one in speed and one in the condense mode. A utility can request the unit be operated in the condense mode as opposed to altering its schedule if in conflict with the minimum 4 hour down time. Note #3 - any scheduling utility can require both units to be Placed on-line between 20 and 30 MW if desired by that utility, although it would be possible to operate one unit in speed and one unit in condense mode at these levels to obtain the entire spinning reserve allocation for the plant, the more efficient operation would be for both units to be operated above 10 MW each in speed mode. 10/06/92 16:55 39077624540 CEA DISPATCH CTR @oo3 Minimum Unit Shut Down Each unit scheduled for shutdown shall be shut down for a minimum of 4 hours. Operation of a unit in the condense mode will not constitute a shut down and does not have a 4 hour minimum time associated with it. The following criteria shall generally govern the operation of the plant during islanded and non-islanded conditions: Islanded Operation Unscheduled Islanding If the Kenai is operating with only Bradley Lake or Bradley Lake and Cooper Lake prior to islanding, one Bradley Lake unit will automatically be placed in deflector by the Chugach scada system upon detection of islanding. The unit will remain in deflector until a Kenai area gas turbine has been synchronized with the islanded Kenai system. After a gas turbine has been synchronized with the Kenai system the unit will be changed to the speed mode from the deflector mode. During load restoration on the Kenai, one unit may be placed in deflector control to aid the gas turbine in load pickup and frequency restoration. The unit will be returned to speed mode after restoration has been completed. Scheduled Islanding Prior to scheduled islanding a Kenai area gas fired generator will be synchronized with the Kenai system. Bradley generation will remain in the speed mode. islanded Overation - Steady State While running islanded, a gas-fired generator shall be operated in conjunction with Bradley Lake. The Bradley Lake units shall he operated in the speed mode. If an on-line gas-fired turbine suffers a forced outage and it is the only gas-fired unit on-line in the islanded system , one Bradley Lake unit shall be placed in deflector mode and operated in deflector until a gas-fired generator is placed on-line in the islanded area. 10/06/92 16:58 9077624540 CEA DISPATCH CTR @oo4 Interconnected Operation - Steady State While Bradley Lake is interconnected to the Anchorage system, its normal mode of operation shall be the speed mode for both units. During times of system load restoration, one Bradley Lake unit may be placed in the deflector mode if the amount of load to be restored will not exceed the export or operating limits of the Kenai systen. ATER WYNNE HEWITT DODSON & SKERRITT ATTORNEYS AT LAW MEMORANDUM TO: Bradley PMC Representatives FROM: Ron Saxton DATE: October 6, 1992 RE: Duties Assigned to Subcommittees ATTACHMENT 6 Suite 1800 222 SW. Columbia Portland, Oregon 97201-6618 (503) 226-1191 Fax (503) 226-0079 In response to a request at our last BPMC meeting to outline the assignments delegated to the various subcommittees, I had my legal assistant (Liz Westby) review the BPMC meeting minutes from 1989 to present and prepare the attached list of tasks. Note that some of the tasks have been completed, but are included on the list for your reference. Distribution: BPMC Utility Managers Paul Diener, City of Seward Ken Ritchey, MEA Dave Highers, CEA Norm Story, HEA Mike Kelly, GVEA Tom Stahr, ML&P AA Ge "D> Ren { Seattle, Washington Washington, D.C. San Francisco, California (206) 623-4711 (202) 785-0303 (415) 421-4143 Fax (206) 467-8406 Fax (202) 785-8676 Fax (415) 989-1263 Affiliated offices in Anchorage, Fairbanks and Juneau, Alaska TO: Ron Saxton FROM: Liz Westby DATE: October 6, 1992 RE: Duties Assigned to the Bradley Lake PMC Subcommittees The following are tasks assigned to the Bradley Lake PMC Subcommittees (as referenced in the meeting minutes). AGREEMENTS SUBCOMMITTEE Tasks: e Look at other agreements for consolidation and coverage. (Minutes 7/2/91, p. 4) e Review Dispatch Agreement. (Minutes 11/19/91, p. 3) 6 Update Allocation and Scheduling Agreement Exhibits C and D. (Minutes 1/13/92, p. 3) 9 Work on Maintenance and Right of Way Agreements with Homer. (Minutes 1/13/92, p. 3) e Review and follow-up on: - Allocation and Scheduling Agreement Exhibit A ~ Dispatch Agreement = Transmission Facility Maintenance ~ Facilities Interconnected Dispatch - Communications MOU - SVCS Draft Agreement - Daves Creek Substation - Soldotna Substation (Minutes 3/26/92, p. 4) BUDGET (AND FINANCE) SUBCOMMITTEE Tasks: Develop draft definitions of Project (construction) costs versus utility costs. (Minutes 7/28/89, p. 4) Establish uniform accounting procedures for utility cost reimbursement. (Minutes 7/28/89, p. 4) Review issues: - cash flow timing; - budget revisions subsequent to budget adoption; ~ reserve accounting; = AEA staffing and overhead costs; - transmission costs; = environmental studies costs; - Intertie budget component. (Minutes 2/27/90, p. 3-4) Review issues: - HEA Transmission Line Maintenance; - AEA Costs; - CEA Software; = Dispatching labor costs. (Minutes 5/17/90, p. 4-5) Review of CEA and HEA Wheeling Agreement costs, and Insurance. (Minutes 5/17/90, p. 6) Address the sinking fund payment that SWEC came up with for the scheduled maintenance and replacement of equipment. (Minutes 7/17/90, p. 8) Look at Homer Electric O&M expenses for the transmission line. (Minutes 7/2/91, p. 3) Analysis and discussion of (1) payments to the trustee to eliminate the cashflow problem, and (2) timing of payments. (Minutes 7/2/91, p.4) Prepare FY93 budget. (Minutes 11/19/91, p. 2) Resolve wheeling issue with HEA. (Minutes 1/13/92, p. 2) INSURANCE SUBCOMMITTEE Tasks: Review need for formal risk assessment of Bradley Lake Project required by insurers in order to develop quotes for property insurance. (Minutes 5/4/89, p. 3) Inventory types of insurance required, such as business interruption Insurance. (Minutes 6/8/89, p. 5) Review of possibility of pooled insurance coverage with the Alaska Intertie and/or Four Dam Pool. (Minutes 10/19/89, p. 5) Prepare insurance alternatives for the budget. (Minutes 11/30/89, p. 3) Consideration of errors and omissions insurance for SWEC. (Minutes 11/30/89, p. 3) Review Stone & Webster Risk Management Report. (Minutes 4/6/90, p. 3) Review property insurance premium quotes from the Division of Risk Management. (Minutes 11/28/90, p. 2) Look (to Corroon & Black) for a provider interested in providing boiler and machinery as well as business interruption insurance. (Minutes 6/6/91, p. 5) Look at coverage of debt service payment and operation and maintenance debt service for at least one year. (Minutes 6/6/91, p. 5-6) Request quotes on insurance premiums. (Minutes 10/25/91, p. 3) Review shop and crew facilities insurance coverage. (Minutes 4/28/92, p. 2) Review options and present recommendations for the level and types of insurance, including an option of not renewing the insurance (self-insurance), extra insurance, and not Increasing the contingency fund. (Minutes 4/28/92, p. 3) OPERATING AND DISPATCH AGREEMENT SUBCOMMITTEE Engage services of a consultant fo assist with drafting language for the Allocation and Scheduling Agreement. (Minutes 5/4/89, p. 6) Draft Bradley Lake Allocation and Scheduling Agreement. (Minutes 10/19/89, p. 5) Develop agreements and distribute to members. Agreements include: - Dispatch Agreement between AEA and CEA - Maintenance Agreement between AEA and Maintenance Contractor - Transmission Facilities Maintenance Agreement between AEA and HEA - Participants Allocation & Scheduling Agreement - Substation Maintenance Agreement between AEA and HEA - Joint Operations Agreement between CEA and HEA - Communications Equipment Agreement between AEA and Division of Telecommunications - Soldotna #1 Dispatch Agreement between CEA and AEG&T (Minutes 7/28/89, p. 4) Select a representative to review and provide comments on the Four Dam Pool draft technical standards. (Minutes 7/28/89, p. 6) Review of presentations on project hydrology, turbine efficiencies and reservoir model for forecasting reservoir inflow and utility demands. (Minutes 1/18/90, p. 5) Review of draft Dispatch Agreement. Work on 2 issues: (1) spinning reserve, and (2) losses on the Homer transmission system. (Minutes 2/27/90, p. 4) Review results of SWEC model on spill allocation. (Minutes 4/6/90, p. 5) Discuss the Allocation and Scheduling Draft Agreement, the operation of the transmission line after Homer Electric has completed their construction. (Minutes 3/5/91, p. 5) Determine the allocation method to be used for Bradley Lake power prior to commercial operation. (Minutes 3/5/91, p. 6) rae TECHNICAL COORDINATING SUBCOMMITTEE Develop a method for tracking and accounting for costs associated with dispatching during generation tests from Bradley Lake. (Minutes 6/6/91, p. 2) Discuss load restoration procedures, loss and billing procedures. (Minutes 6/6/91, p. 4) Develop procedures to allow the Bradley participants to readily note or record Chugach's service needs for Kenai area combustion turbine versus those conditions of providing combustion turbine to support the operation of Bradley Lake. (Minutes 7/2/91, p. 3) Review comments on Dispatch Agreement and reservoir model. (Minutes 11/19/91, p. 3) Meet and discuss maintenance and outage schedule with dispatchers. (Minutes 11/19/91, p. 3) Continue work on Allocation and Scheduling Agreement, Dispatch Agreement, Transmission Maintenance Agreement, Facilities Interconnected Agreement. (Minutes 2/28/92, p. 3) Participate in National Weather Service demonstration (to aid In allocation). (Minutes 2/28/92, p. 4) Review of SCADA communications problem. (Minutes 3/26/92, p. 5) Review and make recommendations on Bradley Lake project start-up charges, (Minutes 3/26/92 p. 7) Discussion of common ring-down circuit and communications problems. (Minutes 6/16/92, p. 5) Develop draft operation and maintenance definitions and responsibilities. (Minutes 8/29/88, p. 4) Appoint a member to serve on the Power Authority Configuration Control Board. (Minutes 9/27/88, p. 2) -5- Meet with SEI regarding their assessment of reliability of the Bradley Junction to Fritz Creek transmission line. (Minutes 1/20/89, p. 2) PTI presentation on Phase II Stability and Reliability. (Minutes 3/3/89, p. 2) Review bids for SCADA system. (Minutes 3/3/89, p. 2) Make presentation to PMC regarding proposed PTI 115 kv additions. (Minutes 4/6/89, p. 2) Review scope of work for system stability studies prepared by SWEC and proposal from PTI to complete additional stability work. (Minutes 6/8/89, p. 3) Review of software program DECNET. (Minutes 6/8/89, p. 3) Continue review of stability issues (Woodward governor). (Minutes 7/28/89, p. 2) Work on surge tank analysis. (Minutes 7/28/89, p. 3) Review and presentation of Load Acceptance Analysis report prepared by SWEC. (Minutes 1/18/90, p. 2) Prepare testing procedures prior to commercial operation. (Minutes 1/18/90, p. 3) Study of microwave link between Divcom and CEA main headquarters. (Minutes 1/18/90, p. 8) Provide an opinion on test period power agreement, interim operational period. (Minutes 7/17/90, p. 7) Approve SCADA point list. (Minutes 9/21/90, p. 2) Review, approve SWEC's recommendation on the installation of the braking resistor, installation of digital stabilizers on the units, Installation of one SVS at the Daves Creek side and in Soldotna. (Minutes, 11/28/90, p. 2) Review how the project should be operated under different scenarios and define certain operation constraints. (Minutes 11/28/90, p.2 ) =6= Review overfrequency tripping for Cooper Lake to try and control the frequency during times of high Kenai energy export. (Minutes 3/5/91, p. 2) Determine the maximum Kenai import (i.e. minimum Bradley Lake operating limit without a gas turbine on-line, assuming that any single contingency event will not result in more than a reasonable loss of load (and define "reasonable."). (Minutes 3/5/91, p. 3) Review of PTI study of operating restraints for the testing and commissioning phase. (Minutes 6/6/91, p. 2) TCS work with SWEC to gather all operating restrictions and recommendations relating to Bradley Lake within the past 2-3 years into one document for reference. (Minutes 6/6/91, p. 3) Develop operating scenarios with 80 MW and 90 MW caps. (Minutes 6/6/91, p. 7) Set the operating criteria for Bradley based on Homer Electric and Seward being subject to no more than stage two load shedding for any single contingency event, using Interim operating criteria until such time as the final operating conditions are adopted by the PMC. (Minutes 7/2/91, p. 3) Oversee SWEC sponsored tests and other utility required tests. (Minutes 8/23/91, p. 3) Review Bradley Lake Operating Manuals. (Minutes 8/23/91, p. 3) Review of PTI Bradley Lake/Kenai Operating Guidelines. (Minutes 11/19/91, p. 2) Review of Bradley Lake Dispatcher Guidelines Summary. (Minutes 1/13/92, p. 4) Report on results of exciter tests. (Minutes 2/28/92, p. 2) Appoint a representative to accompany the tunnel inspectors. (Minutes 3/26/92 p. 7) Expansion of Bradley Lake Operating Conditions, interim operating levels. (Minutes 4/28/92, Attachment A, p. 2) ry BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE APPROVED MEETING MINUTES August 24, 1992 1. CALL TO ORDER Chairman Highers 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 Brent Petrie, Designated Representative Chugach Electric Association David L. Highers, Designated Representative and Chairman Golden Valley Electric Association Mike Kelly, Designated Representative City of Seward Paul Diener, Designated Representative Homer Electric Association Norm Story, Designated 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 \mimutes \pmo\8-92 APPROVED BPMC Meeting Minutes August 24, 1992 Page 2 of 8 John Cooley, Chugach Electric Association Gene Bjornstad, Chugach Electric Association Bob Hufman, AEG&T Dave Fair, Homer Electric Association Mike Yerkes, Homer Electric Association Dave Calvert, City of Seward Tim McConnell, Municipal Light & Power Bob Price, Municipal Light & Power Moe Aslam, Municipal Light & Power Hank Nikkels, Municipal Light & Power Dave Hutchens, ARECA Ron Garzini, Alaska Energy Authority David R. Eberle, Alaska Energy Authority Stanley E. Sieczkowski, Alaska Energy Authority Larry Wolf, 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 OLD BUSINESS, Item 11. C., Update on Seismic Measurement Issues, was deleted. Discussion of seismic measurement issues was incorporated into Item 7. A., Consideration of Budget Amendment to Fund Seismic Monitoring by UAF. 5. APPROVAL OF MINUTES The minutes of the July 23, 1992 meeting were approved as submitted. 6. TECHNICAL COORDINATION SUBCOMMITTEE REPORT Mr. Burlingame reported that the TCS had not met since the last Bradley PMC meeting. Currently, the TCS and Stone & Webster are reviewing proposals to resolve the frequency oscillation problem. Mr. Burlingame noted that there were some discrepancies between the results of the actual SVC simulator tests and PTI's predictions. A third party analysis will be performed to determine the cause of the discrepancies. ¢:\dburger\word \minutes \pmc\8-92 APPROVED BPMC Meeting Minutes August 24, 1992 Page 3 of 8 7. BUDGET SUBCOMMITTEE REPORT It was reported that the Budget Subcommittee had not met. Mr. Ritchey noted the subcommittee's plans to confer with Mr. Saxton regarding Mr. Garzini's proposal to resolve the issue of the Energy Authority's administrative costs in the Bradley FY93 O&M budget. Mr. Saxton informed the PMC that John Parasena had crafted a rough draft RFP for performing the Bradley construction cost audit and expects the final RFP to follow soon. A. CONSIDERATION OF BUDGET AMENDMENT TO FUND SEISMIC MONITORING BY UAF Mr. Petrie reported that Mr. Garzini and Mr. Wolf of AEA met with representatives of the University of Fairbanks Geophysical Institute on August 6, 1992 to discuss the University's proposal for continued seismic monitoring at Bradley Lake. Stating that the University's study would monitor any reservoir induced seismic movements, Mr. Petrie added that the information could be useful in fulfilling the FERC requirement to report seismic events greater than 5.0 on the Richter Scale. Mr. Garzini noted that the University had established a statewide seismic monitoring program. From the University's perspective, an integral part of that program was the study of possible induced seismic activity due to the development of Bradley Lake. Mr. Garzini clarified that the University was only providing research and it was not their intent to provide the required operation system alarm. Mr. Garzini recommended that the Bradley PMC review the continued need for this study on a yearly basis. Mr. Petrie explained that to continue the University's program would require the addition of $30,000 to the existing O&M budget. It was anticipated that the additional expense could be fully funded by the FY92 carryover. Vi Mr. Pi B PM e:\dburger\word \mimutes \pmo\8-92 APPROVED BPMC Meeting Minutes August 24, 1992 Page 4 of 8 Iden V; Electric Association Yes Municipal Light & Power Yes Alaska Energy Authority Yes Expressing reservations concerning the utilities' role supporting the University's seismic research program, Mr. Diener requested that the record clearly show the approval of this expenditure was limited to one year. Mr. Kelly recommended that the Bradley PMC invite the Geophysical Institute to make a presentation next year, when considering the subject again. Mr. Garzini noted that the remaining issue for the Bradley PMC to determine was how long the University's study should continue (i.e. its usefulness versus cost to the project.) Mr. Petrie clarified that the $30,000 appropriation for seismic monitoring was in addition to the $20,000 allotted in the FY93 budget to meet operation alarm requirements (Attachment 1). The total FY93 budgeted amount for seismic monitoring, as amended, is $50,000. 8. AGREEMENT SUBCOMMITTEE REPORT Mr. Sieczkowski reported the Transmission Facilities Maintenance and Soldotna Substation Agreements were discussed at a meeting held between Alaska Energy Authority, Homer Electric Association and Ron Saxton on August 18, 1992. A draft of both agreements was sent to HEA on August 21, 1992. Drafts of the Soldotna Substation Agreement and the Soldotna and Daves Creek SVC Maintenance Agreements have been sent to CEA. An Agreements Subcommittee meeting will be scheduled pending receipt of comments on the SVC Agreements, which are expected by September 18, 1992. Mr. Sieczkowski stated the Interconnected Agreement is still under discussion. Noting the lengthiness of the agreements process, Chairman Highers urged the utilities to return their comments quickly. Mr. Sieczkowski stated that the Transmission Facilities and Soldotna Substation Agreements were very close to signing and that it was hoped all agreements would be ready for signing at the next Bradley PMC meeting. 9. OPERATION AND DISPATCH SUBCOMMITTEE REPORT A summary of the August 18, 1992 O&D Subcommittee meeting was distributed (Attachment 2). Mr. Sieczkowski stated that the cause of the August 13, 1992 outage was being investigated. It was noted that scheduling procedures were discussed at length and that differences existed among the ¢:\dburger\word \minites \pme\8-92 APPROVED BPMC Meeting Minutes August 24, 1992 Page 5 of 8 subcommittee members. Referring to the O&D meeting summary, Mr. Sieczkowski reported that two motions related to scheduling were approved. A method of calculating spinning reserve was also approved at the meeting. Tim McConnell asked for clarification on the first motion where it stated, "Under normal load changes, the approved schedule will not be allowed to change," stating that he understood this did not apply to changes of generation on the system, only to utility load changes (i.e. five or ten megawatts.) Mr. Burlingame noted that "schedule" in this statement should be defined as "confirmed," rather than "approved." Mr. Burlingame explained that a utility could change its schedule only as long as that capacity had not been confirmed to another utility. However, if a system problem (rather than scheduling problem) occurred, the confirmed schedules could be changed to accommodate the need. It was noted that this was an interim procedure and would change when the declared project capability changed to 120 megawatts. Chairman Highers asked Mr. Sieczkowski to continue to keep the Bradley PMC informed on discussions of the issue. Mr. Kelly asked if the motions approved by the O&D Subcommittee needed to be approved by the Bradley PMC. Mr. Sieczkowski noted that, in part, the O&D Subcommittee was bringing the scheduling practices into compliance with the Allocation and Scheduling Procedures. Mr. Story questioned whether the PMC subcommittees had the authority to change procedures approved by the Bradley PMC. Mr. Burlingame added that, during this past year, the O&D Subcommittee had been operating by procedures not approved by the Bradley PMC and that it had been the cause of some conflict. Mr. Burlingame further noted that, with the exception of one issue, the utilities were in agreement regarding the current issues being discussed at the subcommittee level. Mr. Saxton commented that the Bradley Power Sales Agreement provided all authority to the Bradley PMC, and further stated that the Bradley PMC had the power to delegate authority to others. Mr. Saxton noted that, if the distinction between the authority delegated to the subcommittees and the authority reserved by the PMC had become unclear, a review of what the PMC had established would be helpful. Mr. Saxton added that, if the O&D Subcommittee was unable to function within the present system, changes could be made to the Allocation and Scheduling Procedures, or to the authority delegated to the subcommittee, or to both. Mr. Kelly suggested that the subcommittee chairmen and Mr. Saxton search the Bradley PMC meeting minutes to establish the directions that had been given in past meetings. Chairman Highers, concurring with the suggestion, asked Mr. Saxton and the subcommittee chairmen to ¢:\dburger\word \minutes \pmo\8-92, APPROVED BPMC Meeting Minutes August 24, 1992 Page 6 of 8 11. provide a summary list of Committee actions. Mr. Cooley noted that this issue was discussed at the last Bradley PMC meeting and that the PMC had determined it was not necessary to become involved in O&D Subcommittee matters. Mr.- Burlingame clarified that the PMC did not need to be involved in matters of operational procedures unless the procedures directly changed the PMC approved Allocation and Scheduling Procedures. Mr. Burlingame stated that it was the intent of the O&D Subcommittee to keep the Bradley PMC informed of its decisions and that the subcommittee was not looking for PMC approval on all issues. Mr. Sieczkowski noted that the O&D Subcommittee would be seeking PMC approval of the changes made to the Allocation and Scheduling Procedures at the last subcommittee meeting. REVIEW OF PROJECT STATUS Mr. Eberle informed the committee that the SVC simulator testing was conducted in Switzerland during the last two weeks of July. Programming changes were made by ABB which successfully corrected minor controller problems. Although the SVC controller performed as specified, based on ABB's analog model, the overall Kenai transmission system did not respond as anticipated in four of the test cases. At AEA's request, ABB is performing additional digital studies and analog simulator studies on the four cases to determine if there is a problem. The TCS will meet to discuss the test results as soon as the results are available. Mr. Eberle reported that construction work on the SVC sites is proceeding on schedule and that a lot of the major equipment has been delivered to the sites. Installation of the equipment is anticipated shortly. Component testing is expected to begin in October and the first on-line test is scheduled for mid- December. Mr. Burlingame noted that the SVC would be tested to the full operating limits of its design. The DECnet had been installed, however Mr. Eberle noted that problems in the hard drive occurred during testing. The DECnet has been returned to Landis and Gyr for repairs which are expected to take about two weeks. AEA is preparing a contract for clean-up of the contaminated soil to be bid this fall and awarded this winter. Mr. Eberle stated the Energy Authority was required by the Department of Environmental Conservation to clean-up the contaminated soil within two years of discovery. In order to meet this schedule, the Energy Authority plans to proceed with the clean-up while the issue of liability for the clean-up is being determined. ¢:\dburger\word \mimutes\pmc\8-92 APPROVED BPMC Meeting Minutes August 24, 1992 Page 7 of 8 In response to inquiry about the condition of the tunnel by Chairman Highers, Mr. Eberle stated that the turbine discharge pit would be checked for debris during the maintenance scheduled for October. Only minor amounts of debris, if any, are anticipated. 12. OLD BUSINESS A. SPINNING RESERVES/UNDER FREQUENCY LOAD SHEDDING - UPDATE Mr. Lovas reported that the Intertie Operating Committee utility managers met on August 10, 1992 and unanimously decided to suspend action on the appeal by ML&P. The earlier decisions made by the IOC remain unchanged. The IOC has received PTI's final report on load shedding. A load shedding schedule, based on PTI's analysis, has been recommended and is being tested by CEA and ML&P. A final schedule recommendation will be made to the IOC after completion of the testing. Mr. Lovas stated that the Alaska Systems Coordinating Council (ASCC) Reliability Criteria Committee met on August 6, 1992. Currently the draft philosophy and report outline crafted by the committee are being reviewed by the utilities. The Reliability Criteria Committee has selected a consultant to assist with this work. The committee has also formulated its 1993 budget to include specific technical work and consultant costs. The budget recommendation will be presented at the September 23, 1992 ASCC meeting. BRADLEY LAKE CONSTRUCTION COST REVIEW This item was previously discussed under Item 7., Budget Subcommittee Report. No additional comments were made. 13. NEW BUSINESS A. APPROVAL OF COMMITTEE EXPENSES No committee expenses were submitted for approval. APPROVAL OF UTILITY AGREEMENTS Deferred to the next committee meeting. ¢:\dburger\word\mimites\pmo\8-92 APPROVED BPMC Meeting Minutes August 24, 1992 Page 8 of 8 14. 15. COMMUNICATIONS A. RONALD A. GARZINI, INTERIM EXECUTIVE DIRECTOR ALASKA ENERGY AUTHORITY Mr. Garzini stated that the Energy Authority had been working on the development of a "politically sellable" plan for the Railbelt Energy Fund (Senate Bill 5) and requested an opportunity to meet with urban and rural utility managers. Mr. Garzini added that the Energy Authority wanted the input of all of the utilities on the plan before it was finalized. Chairman Highers noted that ARECA would be the most likely forum to facilitate such a meeting. At Mr. Kelly's suggestion, a special meeting including all utilities was scheduled for 10:00 a.m., September 3, 1992 at ARECA. SCHEDULE NEXT MEETING Friday, October 9, 1992 10:00 a.m. CEA Training Room Mr. Burlingame noted that the TCS would be meeting soon and questioned whether the TCS could implement a solution to the frequency oscillation problem. After some discussion, it was concluded that the TCS was authorized to implement a solution, provided it did not impose any operating restrictions beyond those previously approved by the PMC. ADJOURNMENT There being no further business before the committee, the meeting adjourned at 11:40 a.m. David L. Highers$ hairman sie: at AeA Brent N. Petrie, Secretary ¢:\dburger\word\mimutes \pmo\8-92 BRADLEY LAKE FY93 BUDGET ACCOUNT DESCRIPTION A ENERATION Supervision, Engineering and Administrative Support - 3.2 FTE 257,926) 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 101,460 82,000 (Mechanical vibration and balance testing, consumables such as oil and filters, die checks 20,000: and pressure nitrogen cylinder recharges. Helicopter Transportation for Project Facility Inspections Barge Rental to Transport Materials and Dock Fees Project Site Contract Transportation - Scheduled Fixed Wing Service to Site ‘Commercial Transportation [Technical and Operations Training Software Upgrade Modification and Training Divcom Maintenance Fee Project radios, pagers, and telephones Routine Supplies, Materials and Maintenance Items Page i\ of 3 FY93BUDB.XLS 1:41 PM 8/24/92 T LNSWHOVLIY BRADLEY LAKE FY93 BUDGET Electrical Spare Parts Contract Labor for Testing Protective and Revenue Meters, Generators, Transformers, 6 PMC Meetings each year in Anchorage 12 Subcommittee Meeting each year PMC Adminstrative Support AEA Administrative and General Costs Page of 3 FY93BUDB.XLS 1:43 PM 8/24/92 BRADLEY LAKE FY93 BUDGET ACCOUNT DESCRIPRON Attorney Fees (AEA & Utilities) Professional Audit Services $1M Deductible $50K Deductible |One-Sixth of AEA State Policy Premium One Sixth of AEA State Policy Premium Liability Insurance for the Directors and Officers of the PMC TOTAL FY93 BRADLEY O&M BUDGET Page3 of 3 FY93BUDB.XLS 1:43 PM 8/24/92 ATTACHMENT 2 Bradley Lake Operations and Dispatch Summary of Meeting on August 18, 1992 for Bradley Project Manager's Committee Correspondence - received for discussion of Scheduling Procedures, Spinning Reserve, Bradley Lake Project Summary Reports, Operational Procedures and Allocation Update. Operation - the lake elevation was 1139.2 ft. on August 17. Inflow is beginning to slow down. 45,680 MWH was delivered during July. The communication, DECNet and SCADA systems were being worked on by project and contract personnel. There was an outage on August 13. Unit one tripped off-line. This problem was detected when the project was islanded. Load changes, under this condition, greater than 1/2 MW/minute creates problems in the system. This problem is being investigated. Increased unit start-stops have caused other control problems to surface that previously were not detected in the synch circuits. The Division of Information will be requested to initiate the dispatcher ring down circuit upon receipt of approval and transfer of funds. The storing water criteria need committee review and input and will be presented at the next meeting for discussion. After a lengthy discussion of scheduling procedures, it was the consensus of the committee that Bradley was agreed to, by the managers, to be operated as an energy project. The declared capability versus project capacity causes difficulty at times in scheduling, therefore, this philosophy may need to be revisited if capacity becomes an issue. To accomodate the scheduling issue, there were two motions passed which are summarized: 1. Utilities scheduling above their 90MW sfare willbe cut back proportionately to 90MW for unit trips or system emergencies. Under normal load changes, the approved schedule will not be allowed to change; 2. The utilities will submit a weekly schedule by Tuesday, reviewed on Wednesday, confirmed by Thursday and implemented on Saturday at 0001 hours. Spinning reserve calculation methods were discussed. Chugach Electric Association (CEA) provided an example of a proposed method. The discussion addressed the issue of being able to use an utilities capacity when they committed that capacity to another utility. This led to an unresolved problem in the O&D. There was a motion to refer this issue to the Bradley PMC. The enetnge suggested by CEA to calculate the spinning reserve was accepted by the O&D noting that the method of calculation only was approved. Annual maintenance on the Bradley units was discussed and the schedule will be coordinated with the participating utilities. The next meeting is set for September 15, 1992. 92Q3\IT3449(1) Page | of 1