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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. }