HomeMy WebLinkAboutBPMC Meeting - August 24, 1992 1RECORD UOPY FILE NO
Pro Z-bd mi
x le4l¢a
Wy,
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
e:\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.
e:\dburger\word\minutes\pme\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. Mr. Kelly moved, seconded by Mr. Petrie, the Bradley PMC
approve the proposed budget amendment. The motion passed by the
following roll call vote:
City of Seward Yes
Matanuska Electric Association No
h h Electric Association Ye:
Homer Electric Association Yes
¢:\dburger\word\minutes \pmo\8-92
APPROVED BPMC Meeting Minutes
August 24, 1992
Page 4 of 8
Golden V Electric Association Yes
Municipal Light & Power Yes
Alaska En Authorit 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\ minutes \pme\8-92
APPROVED BPMC Mecting 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.
e:\dburger\word\minutes \pmo\8-92
APPROVED BPMC Meeting Minutes
August 24, 1992
Page 7 of 8
12.
13.
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.
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.
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\minutes\pmo\8-92
APPROVED BPMC Meeting Minutes
August 24, 1992
Page 8 of 8
14. . 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.
B. 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.
15. ADJOURNMENT
There being no further business before the committee, the meeting adjourned at
11:40 a.m.
a
David L. Highers~Chairman
¢:\dburger\word\minutes\pmo\8-92
BRADLEY LAKE FY93 BUDGET
ACCOUNT DESCRIPTION
POWER GENERATION
535 Operation Supervision and Engineering Supervision, Engineering and Administrative Support - 3.2 FTE 257,926 257,926|
537 Hydraulic Operation Expenses Inspection of Three Diversions 6,000
‘Snow measurement, SCS 20,000
Siesmic Monitoring, UAF 50,000:
Climatologic - NOAA Weather Service 5,460
Semi-Annual Dam Settlement Survey 2,000
Conservation Studies for Fish and Game 18,000 101,460
538 Electric Operation Expense SCADA Technical Maintenance 25,000)
Powerplant Operations - .4 FTE 42,000:
Supplies 15,000)
82,000!
539 Hydraulic Power Generation Operation Expense Mechanical vibration and balance testing, consumables such as oil and filters, die checks 20,000 20,000,
and pressure nitrogen cylinder recharges.
540.1 Transportation Helicopter Transportation for Project Facility Inspections 91,000
Barge Rental to Transport Materials and Dock Fees 27,500:
Project Site Contract Transportation - Scheduled Fixed Wing Service to Site 70,000
Commercial Transportation 14,400
Safety ‘Technical and Operations Training 14,000
Maintenance Management System Software Upgrade Modification and Training 4,000
Communications Divcom Maintenance Fee 40,000
6,000 Project radios, pagers, and telephones
lies, Materials and Maintenance Items
Pageci\ of 3
FY93BUDB.XLS 1:41 PM 8/24/92 T LNSWHOVLLY
BRADLEY LAKE FY93 BUDGET
ACCOUNT DESCRIPTION
Maintenance of Electric Plant
Electrical Spare Parts
Contract Labor for Testing Protective and Revenue Meters, Generators, Transformers,
70,000,
545 Maintenance of Misc. Hydraulic Plant Mechanical Spare Parts
Misc. Maintenance Contracts 25,000
45,000
545.1 Maintenance of Hydraulic Plant O&M Personnel 4.2 FTE 392,000: 392,000]
547 Fuel Stock Fuel for Bradley Vehicles, Loaders, Graders
556 stem Control and Load Dispatching Labor - CEA 1 FTE
Training - CEA Dispatchers
Economic Dispatch Program (10 yr. Armortization ) - CEA
Bradley Junction Substation Switchyard Inspection and Tests - HEA
Maintenance of Overhead Lines
‘Transmission Line Inspection and Maintenance - HEA
ADMINISTRATIVE, GENERAL AND
REGULATORY EXPENSES
920
Administration and General Expenses
a. Bradley PMC Costs
PMC Travel Cost 6 PMC Meetings each year in Anchorage 23,000 Subcommittee Travel Cost 12 Subcommittee Meeting each year 15,000 Meeting General Expenses PMC Adminstrative Support
Litigation Expenses 25,000
b. Administration Ex,
AEA Administrative and General Costs
Paged of 3
396,011
FY93BUDB.XLS 1:43 PM 8/24/92
BRADLEY LAKE FY93 BUDGET
ACCOUNT DESCRIPTION
Attorney Fees (AEA & Utilities)
Project Audit Professional Audit Services 15,000:
25,000
924 Insurance a, Property $1M Deductible 160,824
b. Boiler and Machinery $50K Deductible 50,000:
ic. General Liability One-Sixth of AEA State Policy Premium 10,000)
d. Watercraft & Aviation One Sixth of AEA State Policy Premium 10,000}
e. Directors and Officers Liability Liability Insurance for the Directors and Officers of the PMC 15,000}
245,824 928 Regulatory Commission Expenses
a, FERC
Land Use Fees FY92 Billing $97,000 100,000
Administrative Fees Estimate 50,000 USGS Streamgaging 210,410)
Five Year Inspection Engineering Consultant (est. $75,000 in FY96) 15,000: |b. Permitting AEA Permits Specialist 26,397
TOTAL FY93 BRADLEY O&M BUDGET
Page 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:
NM Utilities scheduling above their 9OMW sfiare will be cut back proportionately to 9OMW
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 method 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 1 of 1
ALASKA ENERGY AUTHORITY LETTER F TRANSMITTAL P.O. Box 190869
Anchorage, Alaska 99519-0869
Oc: b 1 5 1992 JOB NO.
(907) 561-7877 Phone ee ee (907) 561-8584 Fax David L. Highers
RE Bradley Lake Hydroelectric Project
TO Chugach Electric Association
P x 196300
Anchorage, Alaska 99519-6300
GENTLEMEN:
WE ARE SENDING YOU £ Attached O. Under separate cover via____--—=—=—SSCSCSCSSséthe following items:
O Shop drawings O Prints O Plans O Samples O Specifications
O Copy of letter 0 Change order Kl Meeting Minutes
NO. DESCRIPTION |
l 8/24/92 Approved PMC Meeting Minutes
COPIES DATE
THESE ARE TRANSMITTED as checked below:
O For approval O Approved as submitted 0 Resubmit________copies for approval
0 For your use OO Approved as noted O Submit_______copies for distribution
O As requested O Returned for corrections O Return_____ corrected prints
O For review and comment 0 3
O FOR BIDS DUE____—Ss1'77___—S——s).« PRINTS RETURNED AFTER LOAN TO US
REMARKS I mia&sed getting your signature on these minutes at the meeting last
Friday. Please sign and return to me for distribution in the nest meeting
packet.
Thanks.
COPY TO. ~
SIGNED: ALi di Cth
Denise Burger, Opeaations Assistant If enclosures are not as noted, kindly notify us at once.
}