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HomeMy WebLinkAboutBPMC Meeting - August 24, 1992 3DATE: TO: FROM: SUBJECT: RECORD copy FILE NO Alaska Energy Authority zo 2-1.) mw MEMORANDUM August 10, 1992 Bradley Lake Hydroelectric Project , Project Management Committee Cp rs Brent N. Petrie .A/ AE 7k Secretary Project Management Committee Meeting August 24, 1992 The next meeting of the Bradley Lake Project Management Committee is scheduled Monday, August 24, 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: ° PMC Meeting Agenda - August 24, 1992 ° Draft Minutes - July 23, 1992 PMC Meeting ° Approved Minutes - June 16, 1992 PMC Meeting Please provide any comments regarding the upcoming August 24, 1992 PMC meeting agenda items to Chairman Highers. DB:BNP:db Mr. Everett P. Diener City of Seward Sth & 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 90QIUDO068L{1) Distribution List i Bradley Lake Hydroelectric Project Project Management Committee —tuly 10,1992 AKG ¢ AY 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 Ist Avenue Anchorage, Alaska 99501-1685 Mr. Joe Griffith | 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 1) Golden Valley Electric Association 758 Illinois P.O. Box 1249 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 er Sinerr x Lenk w DALE r>? BREnT | i loo whol on tc ' 90Q1\D0068L(1) Distribution List ‘ Bradley Lake Hydroelectric Project Project Management Committee July 10, 1992 Legislative Research Agency PO. Box Y Juneau, Alaska 99811-3100 Mr. Hank Nikkels Anchorage Municipal Light & Power 1200 East Ist Street Anchorage, Alaska 99501 Mr. Ron Saxton Ater Wynne Hewitt Dodson & Skerrit 225 S.W. Columbia, Suite 1800 Portland, OR 97201-6618 10. hie 12. 13: 14. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE August 24, 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 - July 23, 1992 TECHNICAL COORDINATING SUBCOMMITTEE REPORT BUDGET SUBCOMMITTEE REPORT A. Consideration of Budget Amendment to fund Seismic Monitoring by UAF AGREEMENTS SUBCOMMITTEE REPORT OPERATION AND DISPATCH SUBCOMMITTEE REPORT REVIEW OF PROJECT STATUS OLD BUSINESS A. Spinning Reserves/Under Frequency Load Shedding Update B. Bradley Lake Construction Cost Review Cc Update on Siesmic Measurement Issues NEW BUSINESS A. Approval of Committee Expenses B. Approval of Utility Agreements COMMUNICATIONS A. Schedule Next Meeting ADJOURNMENT Highers Burlingame Ritchey Petrie Sieczkowski Sieczkowski Eberle Lovas Ritchey Garzini DRAFI BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE July 23, 1992 1. CALL TO ORDER Chairman Kelly called the Bradley Lake Hydroelectric Project Management Committee to order at 10:05 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 Golden Valley Electric Association Mike Kelly, Designated Representative and Chairman 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\pmc\7-92 BPMC Meeting Minutes July 23, 1992 page 2 of 15 John Cooley, Chugach Electric Association Joe Griffith, Chugach Electric Association Gene Bjornstad, Chugach 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 Dave Hutchens, ARECA Ron Garzini, 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 No changes were made to the meeting agenda at this time. 5. APPROVAL OF MINUTES The minutes of the June 16, 1992 meeting were approved as submitted. 6. TECHNICAL COORDINATION SUBCOMMITTEE REPORT Dave Burlingame distributed a summary of the July 7, 1992 TCS meeting (Attachment 1). Mr Burlingame stated that the SVC contract work was progressing. The dirt and foundation work have been completed and actual building erection has begun. The contractor is approximatedly ten days behind their original proposed schedule, however progress remains well ahead of the contract completion date. The transformer tests are scheduled to begin July 28, 1992. The SVC simulator test began July 20, 1992 and are expected to take up to three weeks. Mr. Burlingame reported that no significant events had occurred a Bradley and no outages were projected. Mr. Burlingame noted that more water was projected to be available this year than average. e:\dburger\word\minutes \pmc\7-92 BPMC Meeting Minutes July 23, 1992 page 3 of 15 The SVC simulator test cases have been determined and ABB has informally proposed the field tests they wish to perfom during SVC commissioning. Mr. Burlingame noted that some of the proposed tests were extensive. Mr. Burlingame noted problems with the Bradley Lake governor that occurred June 3 and July 8, 1992 when the Kenai Peninsual islanded. Each time, the Kenai was exporting 20 to 30 megawatts of power. Previous studies by PTI indicated that during islanding there would have been an over frequency condition and the frequency should have settled out, allowing restoration of power to the Anchorage area. Mr. Burlingame stated that, in fact, what happened was that the Kenai, following islanding, went into severe frequency oscillation (from roughly 56.6 to 63 hertz.) The Kenai shed all three stages of load shed during both events, even though previous studies indicated no load shed would occur. As a result of the load shed, the voltages went over 115% for about fifteen minutes. Dave Highers expressed concern over the frequency oscillations, stating that the railblet system may be below the original expected standards because of Bradley Lake. Mr. Highers recommended that the TCS be actively involved in the assessment of the problem and the determination of a solution and presented a prepared motion to the PMC for consideration (Attachment 2). Chairman Kelly recommended that the issue be added to the agenda under New Business, Item 13. C. Te INSURANCE SUBCOMMITTEE REPORT Mr. Petrie stated that there was nothing new to report and recommended that, unless a new issue developed, this report be deleted as an agenda item in the future. 8. BUDGET SUBCOMMITTEE REPORT Mr. Ritchey stated that the Budget Subcommittee activity centered around the Bradley Lake construction cost audit and would be discussed under Old Business, Item 12 E., Bradley Lake Construction Cost Review. Chairman Kelly noted plans to discuss the construction fund balance legislative re-appropriation at that time. Mr. Petrie informed the PMC that Governor Hickel had vetoed the re-appropriation request and the funds remained available. ¢:\dburger\word\minutes\pme\7-92 BPMC Meeting Minutes July 23, 1992 page 4 of 15 9. AGREEMENT SUBCOMMITTEE REPORT Mr. Sieczkowski reported that the subcommittee met on July 21, 1992. Drafts of the Soldotna Substation Agreement, Transmission Facilities Maintenance Agreement, and Soldotna SVC Facilities Maintenance Agreement were sent out to the subcommittee for review prior to the meeting. The subcommittee discussed at length the Transmission Facilities Maintenance Agreement. In order to assure compatibility with existing agreements, consistency with other agreements and legal clarity, the subcommittee developed the following proposal: August 6, 1992 Complete a new draft August 10, 1992 Send out the new draft to the subcommittee August 18, 1992 Agreement Subcommittee meeting Mr. Sieczkowski stated that the Agreement Subcommittee expected to present these agreements at the next PMC meeting for approval. Chairman Kelly clarified that although some utility agreements were now ready, all agreements would be presented for approval to the PMC concurrently. 10. OPERATION AND DISPATCH SUBCOMMITTEE REPORT Mr. Sieczkowski reported the O&D Subcommittee met on July 15, 1992. At the meeting, the utilities agreed that in the future only an approved summary of the meeting minutes be provided to the PMC (rather than draft meeting minutes). Mr. Sieczkowski noted that the subcommittee was informed of modifications made to the tunnel gate closure control circuits to provide additional tunnel protection, and of progress made towards resolving communications system problems to the weather stations. Project Operating Criteria, Exhibit B of the Allocation and Scheduling Procedures, is being developed. Mr. Sieczkowski informed the PMC that the O&D Subcommittee had approved the following two motions pertaining to the operation of the project: 1. When the Bradley Lake schedules drop below 30 megawatts, the Bradley Lake dispatcher will contact the affected scheduling utilities to determine if they would be harmed by one unit operation until the Bradley schedule goes back above 30 megawatts, with a minimum unit down time of four hours. ¢:\dburger\word\mimutes\pme\7-92 BPMC Meeting Minutes July 23, 1992 page 5 of 15 2. If the schedule reaches minimum load level to shut down a unit, the schedule shall be modified as necessary to provide a minimum down time of four hours. The affected scheduling utilities shall be given the opportunity to modify their schedule to prevent the above action. Mr. Sieczkowski stated that, previously, if the schedule dropped below 20 megawatts, the project automatically went to one unit operation. Prior to approving the motions the O&D Subcommittee discussed its ramifications in regards to efficiency, effect on maintenance, and effect on the scheduling utilities. In response to inquiry by Chairman Kelly, Mr. Sieczkowski confirmed that the scheduling utilities would be contacted in advance, and under this scenario, had the power to veto dropping to one unit operation. After questioning whether there was a need to have the PMC approve changes in operation procedures, Chairman Kelly recommended further discussion of the issue under New Business, adding agenda Item 13 D., Bradley One Generator Operation and Item 13 E., Bradley Minimum Unit Down Time. Mr. McConnell commented that the motions made and approved at the O&D Subcommittee meeting were not controversial, however there was a risk involved if changes were made in operating procedures without coordinating them throughout the utilities prior to PMC approval. Chairman Kelly stated that opportunity would be given for discussion of this issue under New Business and that any committee member could move to table a PMC motion. Mr. Sieczkowski reported that spinning reserve requirements and scheduling capability had also been discussed at the O&D meeting, but that no action was taken on the issue. It was decided however that CEA would send the spinning reserve calculations to the utilities for review and further discussion would take place at the next O&D Subcommittee meeting. Mr. Stahr commented that the Alaska Intertie Agreement definition of spinning reserve was at variance with how it was being treated by the O&D Subcommittee, and that the Intertie Agreement would have to be amended in order to change the definition of spinning reserve. Mr. Sieczkowski stated that the O&D Subcommittee was reviewing the Draft Amendment for Storing Water Criteria and it would be discussed at the next meeting. ¢:\dburger\word\minutes \pmo\7-92 BPMC Meeting Minutes July 23, 1992 page 6 of 15 11. In response to inquiry by Bob Hufman, Mr. Sieczkowski confirmed that the IBEW was attempting to establish representation of the Bradley operators. Voting ballots have been mailed to the operators by the Alaska Labor Relations Agency and are required to be returned by August 14, 1992. Chairman Kelly noted the assumption that, at some point in time after the warranty period, the responsibility for the operation of Bradley Lake would transfer from AEA to HEA. Chairman Kelly suggested that HEA may want to be included in possible union contract negotiations. In response to inquiry by Chairman Kelly, Mr. Garzini stated that the Energy Authority would discuss options with the operators, however, timing would be within legal requirements and was yet to be determined. Mr. Garzini further stated that the operators felt they were not being well represented, thus precipitating this situation, and Mr. Garzini hoped to address this problem. REVIEW OF PROJECT STATUS Larry Wolf stated that the seismic monitoring equipment installed by the University of Alaska Fairbanks (UAF) was either inoperable or inadequate for operations reporting requirements and that the Energy Authority was installing new equipment. The new equipment will alarm the dispatcher and the powerhouse of a seismic event of 5.0 or larger at the dam site. A report and inspection are required (by FERC) if a 5.0 or larger seismic event occurs (and the epicenter is within a 50 mile radius). Mr. Wolf reported that an automatic transfer switch had been installed on the 15 kV cable from the powerhouse to the dam and microwave tower. Mr. Wolf recounted that because of a failure of the cable almost two years ago, a temporary standby generator was installed, and subsequently a second, backup cable was run parallel to the first cable. The standby generator at the dam will now be able to automatically transfer from one leg of the cable to the other in case of a cable failure, or if power is lost from the powerhouse, it will switch on the appropriate cable to power the microwave site near the dam. Referring to the gate closure event that caused partial de-watering of the power tunnel, Mr. Wolf stated that a snap table had been installed to effect gate closure. Failure of the spherical valve on an emergency closure on one unit will trip the other unit. The gate will then close preventing loss of water in the tunnel. The units will also trip if the gate comes off the closed position switch (which requires 5% travel), or when the gate reaches the 80% open position indicator. ¢:\dburger\word\minutes\pmc\7-92 BPMC Meeting Minutes July 23, 1992 page 7 of 15 Mr. Wolf noted that Landis & Gyr factory testing of the DECnet and Micro- VAX was scheduled July 31, 1992 and field installation was anticipated mid- August. Mr. Wolf informed the PMC that Stone & Webster was in the process of preparing specifications for grouting repair work on the spillway diversion tunnel. It is expected that the repair work will be done this fall. Regarding the contaminated soil stock-piled at the project site, Mr. Wolf noted that preparation of soil remediation contract bid documents is underway. Mr. Petrie stated that the cost of the soil clean-up would initially be covered by remaining project funds, however the Energy Authority was pursuing recovery of some costs from the construction contractors. Because the determination of responsibility for the soil contamination is not a clear issue, Mr. Petrie anticipates litigation may result. Chairman Kelly, directing his comments to Mr. Garzini, stated that the head of the UAF Geophysical Institute had requested Chairman Kelly's intervention concerning the Energy Authority's termination of the Bradley Lake seismic monitoring Reimbursable Services Agreement. Chairman Kelly noted it was the position of the Geophysical Institute that the Energy Authority did not have the expertise to continue the monitoring on its own and that the Geophysical Institute could continue their seismic monitoring program for $30,000 - $40,000/year. Mr. Garzini responded that the Energy Authority staff was committed to getting the job done without any loss in quality and that, as it had been presented to him, a substantial financial savings could be realized. Mr. Garzini stated he would be very willing to meet with Dr. Syun Akasofu, Director of the Geophysical Institute to provide an opportunity to discuss the Institute's service and substantiate their costs. Mr. Garzini confirmed that he would contact Dr. Akasofu to discuss the matter. Tom Stahr expressed concern that the saving of some money in this situation may not be worth the loss in expertise and suggested that a motion be made requiring the Energy Authority not to change the current seismic monitoring program until the options had been investigated and reported to the PMC. Chairman Kelly noted that the PMC paid 100% of the cost of the program. The Chairman recommended further discussion of the issue under New Business, Item F., Bradley Seismic Measurement (Monitoring). ¢:\dburger\word \minutes\pmo\7-92, BPMC Meeting Minutes July 23, 1992 page 8 of 15 12. OLD BUSINESS A. SPINNING RESERVES/UNDER FREQUENCY LOAD SHEDDING - UPDATE Tom Lovas noted that the whole issue of spinning reserve and load shedding was currently being discussed on several fronts (within the Bradley O&D Subcommittee, the IOC and the ASCC.) The consultant recommended by NERC (North America Electric Reliability Council) has submitted a proposed scope of work which will be considered at the August 6, 1992 ASCC meeting. The IOC Under Frequency Load Shedding Study is in its final stages. At the request of ML&P and CEA, the IOC is reviewing methods of accounting for spinning reserve and methods of identifying reserve responsibility with regard to the Bradley Lake Project. Mr. Lovas informed the PMC that the IOC held a special meeting on July 14, 1992 to review these issues. Five motions were made and either approved or denied at the meeting, three of which were appealed by ML&P within the allotted five day period. It is ML&P's view that the contested motions are in violation of the Alaska Intertie Agreement and not within the province of the IOC. Mr. Lovas is preparing background material on the issues for distribution. It was noted that in the case of an appeal of a motion, unanimous agreement was required among the utilities and AEA within twenty working days. If agreement cannot be reached, the issue must then be resolved through binding arbitration. Mr. McConnell stated that this was a "friendly appeal" meant to clarify the Intertie Agreement, noting that improvements in the railbelt system (including Bradley) may effect the interpretation of the contract and the application of current studies. Mr. Lovas will continue to update the Bradley PMC on this issue. HEA BRADLEY ECONOMY SALES TO GVEA - UPDATE At the suggestion of Chairman Kelly, and with the implied consensus of the PMC, this item will be dropped from future meeting agendas. DIVISION OF INFORMATION SERVICES Mr. Sieczkowski reported that the Energy Authority was in the process of preparing information requested by Kay Brown and the Legislative ¢:\dburger\word\mminutes\pme\7-92 BPMC Meeting Minutes July 23, 1992 page 9 of 15 Budget and Audit Committee (LB&A) outlining the comparative costs and requirements of the Bradley communications system. RING-DOWN CIRCUIT Mr. Sieczkowski stated the O&D Subcommittee had passed a motion recommending the PMC approve funding for a utility common ring- down circuit. An estimate of just under $30,000 was obtained which included the common ring-down circuit and single lines for utilities without them. Brent Petrie moved that the PMC approve a $30,000 appropriation for the ring-down circuit as a project cost. Seconded by Paul Diener, the motion passed by unanimous roll call vote. BRADLEY LAKE CONSTRUCTION COST REVIEW Ken Ritchey informed the PMC that representatives of the Budget Subcommittee met with AEA on July 23, 1992 to review Energy Authority Bradley construction audit records. Mr. Ritchey noted that the Energy Authority had done a considerable amount of audit work and provided the subcommittee an unexpected, large volume of material. However, it was decided the audit process, the audit summaries, and further details, if deemed necessary, should be reviewed. Noting that the major construction contracts had been audited by AEA, Mr. Ritchey recommend the audit of one of the construction contracts. Other items the Budget Subcommittee recommended for review included AEA's bidding and contract award procedures and the $17,000,000 Energy Authority costs. Mr. Ritchey suggested that John Parisena be recruited to write an RFP within the suggested range of $20,000. Tom Stahr moved that the PMC direct the Budget Subcommittee to develop an RFP for conducting a Bradley construction cost audit at a cost not to exceed $20,000 and authorizes the award of the contract as a project cost. The motion, seconded by Dave Highers, was approved by unanimous roll call vote. 14. COMMUNICATIONS A. RON GARZINI, INTERIM EXECUTIVE DIRECTOR ALASKA ENERGY AUTHORITY Chairman Kelly introduced Ron Garzini, newly appointed Interim Executive Director of the Alaska Energy Authority. Mr. Garzini ¢:\dburger\word\minutes\pmo\7-92 BPMC Meeting Minutes July 23, 1992 page 10 of 15 explained that the Energy Authority was currently recruiting for a permanent executive director, but in the mean time, he felt it necessary to begin some new initiatives now. Mr. Garzini stated that the role of the Energy Authority needed to be defined. In part, questions needed to be addressed regarding its role in the planning and development of the state's rural energy needs and in the future development of energy technology. Soliciting the help of the utilities, Mr. Garzini recommended that by January 1993 a comprehensive energy program be prepared and submitted to the Legislature. The AEA Board of Directors has supported this initiative with the approval of $100,000 for the retention of a consultant. Mr. Garzini asked the PMC for its assistance in the development of the RFP and in the review and selection process of the consultant. Additionally, once the consultant is selected, Mr. Garzini asked that members of the PMC, as a part of a steering committee, assist the consultant in the development of this program. Chairman Kelly noted concern that January might be too late to present such a plan to the legislature. However, Chairman Kelly pointed out that the PMC had fully supported similar efforts by the previous executive director and that support would likely continue. In response to a discussion over the short time frame to accomplish the goal, Mr. Garzini committed his efforts to streamline the process, where possible, and encouraged the utilities to begin gathering their information now. Mr. Garzini also requested the utility managers provide input for development projects qualifying for various federal funding opportunities and a strategy to obtain the funding. Mr. Garzini further stated that potential for federal funding could increase with the creation of "an alliance" with other states such as Hawaii and Washington. In an effort to resolve the law suit regarding the Bradley Lake operating budget and AEA administrative costs, Mr. Garzini indicated his availability to either receive or make a proposal. Mr. Garzini noted that at the time of the Bradley Power Sales Agreement he was on the "other side of the table" and offered the utilities the opportunity for new dialog on the issue. Chairman Kelly stated that Mr. Garzini was welcome to discuss the issue later at the Manager's Meeting. Mr. Garzini reiterated his willingness to work with the PMC and his desire to resolve the issue without litigation. ¢:\dburger\word\minutes \pmo\7-92 BPMC Meeting Minutes July 23, 1992 page 11 of 15 12. OLD BUSINESS (continued) F. SEPARATION OF OFFICE OF SECRETARY/TREASURER Dave Highers reported that the Nominating Committee recommended the position of Secretary/Treasurer be divided into two positions. According to Bradley PMC bylaws, the position of Secretary would remain held by AEA. The Treasurer would assume chairmanship of the Budget and Finance Subcommittees. Dave Highers motioned, seconded by Norm Story, that the position of Secretary/Treasurer be separated. Without further discussion, the motion was passed_by a unanimous roll call vote. 13. NEW BUSINESS A. ELECTION OF OFFICERS Dave Highers presented the following Nominating Committee proposal for action: Chairman Dave Highers Vice Chairman Norm Story Secretary AEA, as required by PMC bylaws Treasurer Ken Ritchey Chairman Kelly inquired if there was any need to hold a separate vote for each office. None was indicated. The motion, seconded by Ken Ritchey and Paul Diener, passed by unanimous roll call vote. Mr. Kelly was applauded by the committee members in recognition of his efforts as chairman of the PMC. The remaining business of the meeting was conducted by the newly elected chairman. APPROVAL OF COMMITTEE EXPENSES A chart of Bradley Lake related utility expenses and Section 31 Costs for May 15 through June 30, 1992 was distributed to the committee (Attachment 3). No utility expenses were indicated. Mr. Petrie noted that the $23,537.01 submitted as Section 31 Costs nearly depleted the ¢:\dburger\word\minutes\pme\7-92 BPMC Meeting Minutes July 23, 1992 page 12 of 15 bond funds. Mr. Saxton noted that future committee expenses would be treated as an operating cost and paid out of the PMC O&M budget. Mr. Kelly motioned, seconded by Mr. Diener to approve reimbursement of the submitted utility Section 31 Costs. The motion was approved unanimously without comment or discussion. C. FREQUENCY GOVERNOR OSCILLATIONS Chairman Highers referred to the prepared motion previously distributed (Attachment 2). Tom Stahr moved that the motion read as prepared with the addition of one last sentence. In its entirety the motion then read: Move that the PMC direct the TCS in conjunction with the Dispatch and Operations Subcommittee to investigate the frequency oscillations associated with the islanding of the Bradley Lake System. The TCS should, within the next 30 days, identify all short term solutions which may be viable for implementation for up to a 90 day period. The solutions should be brought to the PMC with a discussion on the benefits and operating restrictions imposed by each of the proposed solutions to allow for implementation by the PMC. The TCS should also identify proposed long term solutions and within the next 45 days bring forward to the PMC proposed long term solutions with a discussion on each possible solution and a schedule on implementation. Energy storage and retrieval systems including hydraulic, pneumatic, magnetic, and electrochemical shall be considered as enhancements for control and load acceptance. The motion was seconded by Norm Story. Brent Petrie noted that Dave Eberle was currently out of state and requested that the TCS be given 15 days additional time to investigate the problem and present a solution to the PMC. With the consent of Mr. Stahr, the motion was amended to reflect the additional time. Mr. Burlingame noted that Mr. Eberle had already taken measures to address the problem and ¢:\dburger\word\minutes\pmo\7-92 BPMC Meeting Minutes July 23, 1992 page 13 of 15 further expressed concern that the present situation posed a significant risk to the southern Kenai system. Norm Story, noting the recent outages, concurred with Mr. Burlingame's concern. Mr. Petrie assured the PMC that the issue would be addressed by AEA as soon as possible. Mr. Burlingame clarified that the TCS does not have any proposals to resolve the problem at this time, although, as long as the Kenai is exporting power, CEA has implemented what they believe to be a solution. Because of discussion concerning the suggested time frame of the motion, Mr. Kelly moved that the motion be divided, allowing consideration of the first paragraph of the original proposal made by Mr. Highers and then consideration of the second paragraph of the original proposal,together with the additional statement by Mr. Stahr, and the 15 day time extension requested by Mr. Petrie. The motion, seconded by Mr. Petrie was approved by a unanimous roll call vote. Mr. Kelly called for the vote on the first part of the "original" motion: Move that the PMC direct the TCS in conjunction with the Dispatch and Operations Subcommittee to investigate the frequency oscillations associated with the islanding of the Bradley Lake System. The TCS should, within the next 30 days, identify all short term solutions which may be viable for implementation for up t day period. The solutions should be brought to the PMC with a discussion on the benefits and operating restrictions imposed by each of the proposed solutions to allow for implementation by the PMC. The motion was approved by unanimous roll call vote. Chairman Highers called for the vote on the second part: The TCS should also identify proposed long term solutions and within the next 60 days bring forward to the PMC proposed long term solutions with a discussion on each possible solution and a schedule on implementation. Energy storage and retrieval systems including hydraulic, pneumatic, magnetic, and electrochemical ¢:\dburger\word\minutes\pmo\7-92 BPMC Meeting Minutes July 23, 1992 page 14 of 15 mo shall be considered as enhancements for control and load acceptance. Mr. Kelly interjected that if the "surge tank issue" was resurrected and became a solution to the problem that it would be a project cost issue. Noting past discussions on the surge tank, Mr. Kelly suggested that if the need for the system was handled as a new item of construction, it be made clear that the intent was to identify a means of faster response. Tom Stahr stated his belief that the issues were closely related and that the problem should be addressed while project construction funds were still available. Dave Burlingame expressed concern over the perception of the problem, clarifying that the problem was the way in which the Bradley Lake governor interacts with the islanded system. Mr. Burlingame further stated that it was a design problem and the tunnel design and Kenai islanding system were factors. It was noted that the two related outages occurred while the Kenai was exporting power, and that, in those instances, Bradley Lake responded faster than any gas turbine. Stating that neither the problem nor the solution could be determined at this time, Mr. Petrie called for the vote. The motion was approved by unanimous roll call vote. BRADLEY ONE GENERATOR OPERATION BRADLEY MINIMUM UNIT DOWN TIME Chairman Highers, having conferred with Ron Saxton, stated that because these were matters related specifically to scheduling (and which did not result in changing a utility's project share), PMC approval of these motions was not necessary. It was clarified that issues related to operation and scheduling procedures would be handled at the Operations & Dispatch Subcommittee level. BRADLEY SEISMIC MEASUREMENT ISSUES Mr. Garzini assured the PMC that he would make arrangements to meet with Dr. Akasofu and would report back to the PMC. e:\dburger\word\minutes \pmo\7-92, BPMC Meeting Minutes July 23, 1992 page 15 of 15 14. . COMMUNICATIONS (continuted) B. SCHEDULE NEXT MEETING August 24, 1992 10:00 a.m. CEA Training Room 15. ADJOURNMENT There being no further business, the committee adjourned at 12:20 p.m. David L. Highers, Chairman Attest: Brent N. Petrie, Secretary ¢:\dburger\word\minutes \pmc\7-92 ATTACHMENT 1 CHUGACH ELECTRIC ASSOCIATION, INC. Anchorage, Alaska July 21, 1992 TOs Bradley Lake Project Management Committee FROM: David W. Burlingame, TCS Secretary 72 “es 7 SUBJECT: TCS Meeting - July 7, 1992 The following is a synopsis of the previous TCS meeting: svc Project Status - The Contractor has begun construction of the foundations, conduit, ground grid and building erection. Work is proceeding smoothly although it is approximately 2 weeks behind ABB's original schedule. Transformer tests are scheduled for July 28, 1992. svc simulator tests are scheduled for July 20, 1992. Bradley Lake Status - The project is operating normally without any planned outages. Water projections indicate this will be an above average year. DECNET Status - The VAX computer was shipped back to Landys & Gyr for correction. Tests are scheduled for July 24, 1992. Simulator Studies - The proposed simulator studies were reviewed and comments requested. The studies outline what parameters will be tested in ABB's simulator lab and also what tests ABB would like to see repeated in the field. Filed testing may begin as early as October. Bradley Lake Governor Problems - The TCS reviewed a letter from the Bradley Lake Dispatcher concerning the unacceptable performance of Bradley Lake following islanding conditions. The committee was briefed on the June 3, 1992 outage of the Kenai. Following islanding conditions, the Bradley Lake governor begins oscillations which have resulted in the Kenai shedding all three stages of loadshedding. PTI's studies to date had indicated there should have been no loadshedding for this event or the event of July 8, 1992. Chugach has implemented some control changes in conjunction with SWEC which should prevent loadshedding for the conditions where the Kenai is exporting over a certain amount of power. The solution for those times when the Kenai is importing or exporting a small amount of power was to be addressed by SWEC. ATTACHMENT 2 Cigtion)- Move that the PMC direct the TCS in conjunction with the D ispatch & Operations Subcommittee to investigate the frequency oscillations associated with the islanding of the Bradley Lake system. The TCS should, within the next 30 days identify all short term solutions which may be viable for implementation for up toa 90 day period. The solutions should be brought to the PMC with a discussion on the benefits and operating restrictions imposed by each of the proposed solutions to allow for implementation by the PMC. The TCS should also identify proposed long term solutions and within the next 45 days bring forward to the PMC proposed long term solutions with a discussion on each possible solution and a schedule on implementation. ATTACHMENT 3 ATER WYNNE seine HEWITI Portland, Oregon 97201-6618 (503) 226-1191 DODSON Fax (503) 226-0079 & SKERRITT ATTORNEYS AT LAW July 21, 1992 VIA_ FEDERAL EXPRESS RECEIVED Brent Petrie JUL 22 1992 Alaska Energy Authority 701 East Tudor Road iaska Energy Authority Anchorage, AK 99510-0869 Res B Lake Utility Expenses Through June 1992 Dear Brent: Enclosed is the chart of unreimbursed Bradley Lake costs from the period May 15, 1992 through June 30, 1992. Let me know if you have any questions. Sincerely, Be G. Westby, Legal Assistant Encl. EGW\077egw. let Seattle, Washington Washington, D.C. San Francisco, California Affiliated offices in (206) 623-4711 (202) 785-0303 (415) 421-4143 Anchorage, Fairbanks Fax (206) 467-8406 Fax (202) 785-8676 Fax (415) 989-1263 and Juneau, Alaska UNREIMBURSED BRADLEY LAKE COSTS COSTS INCURRED May through June, 1992 As Submitted to Ater Wynne PROJECT COSTS ew [emenc | event | ascar| nome | wee | war [ore | imme |" | 1990 UTILITY OPINION LETTERS a a SECTION 31 COSTS APPROVED AT BPMC MEETING vu 2 CHUGACH: No costs submitted. GVEA: Includes cost information from February through April, 1992. HOMER: Includes cost information from February through April, 1992. MATANUSKA: Cost form claims zero expenses from December 15, 1991 through May 15, 1992. ML&P: No costs submitted. SEWARD: Includes cost information from January through April, 1992. ATER WYNNE: Includes legal fees and costs from May 15, through June 30, 1992. EGW\BPMC Forward completed chart to: Ron Saxton Ater Wynne 222 SW Columbia, Ste. 1800 Portland, OR 97201 UNREIMBURSED BRADLEY LAKE COSTS UTILITY _Ater Wynne MONTH May 15 - June 30, 1992 RETURN NO LATER THAN PROJECT COSTS CATEGORY TOTAL AMOUNT Al 1990 FINANCE TEAM PARTICIPATION All travel-related expenses for members of the Finance Team for trip and meetings associated with the second financing. LEGAL EXPENSES FOR FINANCING EFFORTS Legal fees of the Committee attorney relating to the second financing effort. OPINIONS OF COUNSEL Scope of work on 1990 second financing effort to be determined later. TCC EXPENSES Travel and meeting expenses associated with your utility's participation on the Technical Coordinating Committee. Do not include amounts for staff time. SECTION 31 COSTS B2 BPMC ORGANIZATION (a) BPMC-approved costs for conducting Committee meetings and general business. IN ACCOUNT WITH ATER WYNNE HEWITT DODSON & SKERRITT Lawyers Suite 1800 222 S.W. Columbia Portland, Oregon 97201-6618 Bradley Lake Project Management Committee/Utilities Group Attn: Michael P. Kelly Box 1249 Fairbanks, Alaska 99707 July 13, 1992 For professional services and expenses May 15 through May 31, 1992: General $ 1,680.56 Dispute Regarding AEA Administrative Costs 3,342.40 TOTAL AMOUNT DUE PER THIS STATEMENT $ 5,022.96 der088.inv IN ACCOUNT WITH ATER WYNNE HEWITT DODSON & SKERRITT Lawyers Suite 1800 222 S.W. Columbia Portland, Oregon 97201-6618 Bradley Lake Project Management Committee/Utilities Group Attn: Michael P. Kelly Box 1249 Fairbanks, Alaska 99707 July 13, 1992 For professional services and expenses in June 1992: General $ 10,925.39 Dispute Regarding AEA Administrative Costs 7,588.66 TOTAL AMOUNT DUE PER THIS STATEMENT $ 18,514.05 der068.inv BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE June 16, 1992 is CALL TO ORDER Chairman Kelly called the Bradley Lake Hydroelectric Project Management Committee to order at 10:15 a.m. in the Training Room at Chugach Electric Association in Anchorage, Alaska to conduct the business of the Committee per the agenda and the public notice. 2. ROLL CALL Alaska Energy Authority Gloria Manni, Alternate Representative Chugach Electric Association David L. Highers, Designated Representative Golden Valley Electric Association Mike Kelly, Designated Representative and Chairman City of Seward Paul Diener, Designated Representative Homer Electric Association Dave Fair, Alternate Representative Matanuska Electric Association Ken Ritchey, Designated Representative Municipal Light & Power Tom Stahr, Designated Representative Others Present: Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerrit David Burlingame, Chugach Electric Association Tom Lovas, Chugach Electric Association e:\dburger\word \minutes \pmc\6-92 BPMC Meeting June 16, 1992 page 2 of 8 John Cooley, Chugach Electric Association Gene Bjornstad, Chugach Electric Association Bradley Evans, Chugach Electric Association Bob Hufman, AEG&T Dave Calvert, City of Seward Tim McConnell, Municipal Light & Power Pete Fraser, Municipal Light & Power Bob Price, Municipal Light & Power Moe Aslam, Municipal Light & Power Brent Petrie, Alaska Energy Authority Stanley E. Sieczkowski, Alaska Energy Authority David R. Eberle, Alaska Energy Authority Denise Burger, Alaska Energy Authority PUBLIC COMMENT There being no public comment, the meeting continued to the next agenda item. 4. AGENDA COMMENTS The meeting agenda was approved with the following additions: 13B. 13C. 13D. 13E. 13F. APPOINTMENT OF NOMINATING COMMITTEE BRADLEY CONSTRUCTION COST AUDIT SECTION 31 FUND BALANCE. . DIVISION OF INFORMATION SERVICES BRADLEY ISSUES IN FRONT OF APUC RELATED TO HEA AND CEA 5. APPROVAL OF MINUTES The minutes of the April 28, 1992 meeting were approved as submitted. 6. TECHNICAL COORDINATION SUBCOMMITTEE REPORT Dave Burlingame reported that the TCS had not met since the last BPMC meeting. There were no questions or comments directed to the TCS. c:\dburger\word minutes \pmo\6-92 BPMC Meeting June 16, 1992 page 3 of 8 7. INSURANCE SUBCOMMITTEE REPORT Brent Petrie reported that the Insurance Subcommittee had not met since the last BPMC meeting, however Bradley insurance has been renewed at the same cost as last year, which is within budget. 8. BUDGET SUBCOMMITTEE REPORT Mr. Ritchey stated that the Budget Subcommittee has met several times and the disagreement over AEA administrative costs remains. Mr. Ritchey noted that although the utilities and AEA desired to resolve the problem, both sides were still far apart. Chairman Kelly confirmed that notice of intent to sue over the amount of AEA administrative costs has been sent to AEA. Mr. Highers expressed concern that the budget numbers/differences were unclear. It was noted by Mr. Saxton that the utilities would be defining those numbers at their meeting later in the day. Noting this year's similarity to last year's budget adoption process, Chairman Kelly commented that the litigation procedure would ultimately be in the best interest of both parties. Establishing firm guidelines now would prevent yearly repeats of this problem. Ms. Manni stated AEA was firm in its interpretation of the Power Sales Agreement and felt it was entitled to charge the utilities for the disputed costs. Clarifying that each party understood the position of the other, Chairman Kelly noted that Mr. Ritchey would report on today's utility meeting on the budget issue to the Energy Authority. Topics to be discussed at today's meeting would include an anticipated time frame and the utilities' general authority to sue. Mr. Saxton noted that the utilities were obligated under the Power Sales Agreement to make payments in accordance with AEA's FY93 budget regardless of the pending litigation on the issue. 9. AGREEMENT SUBCOMMITTEE REPORT A. TRANSMISSION FACILITY MAINTENANCE AGREEMENT BETWEEN AEA AND AEG&T Mr. Sieczkowski reported that the language of the agreement had been refined and was in the final stages of review by HEA's attorney. e:\dburger\word \mimutes \pmo\6-92, BPMC Meeting June 16, 1992 page 4 of 8 10. B. FACILITIES INTERCONNECTED DISPATCH AGREEMENT BETWEEN AEA AND HEA The final draft of the agreement is with HEA awaiting their comment. Dave Fair stated that the draft agreements had not yet been completed due to a heavy work load at HEA. Mr. Fair anticipates that the agreement will be ready for presentation to the BPMC at its next meeting. Cc. SOLDOTNA SUBSTATION RIGHT OF ENTRY AGREEMENT The Energy Authority is awaiting comments on the draft agreement from CEA and HEA. Mr. Sieczkowski anticipates this agreement will also be ready for presentation to BPMC at its next meeting. An Agreement Subcommittee meeting will be called to review the agreements prior to the next BPMC meeting. OPERATION AND DISPATCH SUBCOMMITTEE REPORT Mr. Sieczkowski distributed the draft meeting minutes of the June 10, 1992 O&D Subcommittee meeting (Attachment 1). Currently, Bradley is generating 90 megawatts during the day, dropping to 50 megawatts at night. At this date, the lake elevation is at 1106.3 feet, rising from 1104 feet last week. Referring to the outage of June 3, 1992, Mr. Sieczkowski assured the BPMC that the DSM will be maintained in the proper mode.! Mr. Sieczkowski stated that installation of radio equipment at the remote sites is progressing. The transfer of $250,000 from AEA to the Division of Information Services for the microwave communications upgrade has not yet been approved. The issue was not addressed at the June 15, 1992 Legislative Budget and Audit Committee meeting. Noting resistance to the request from Representative Kay Brown, Mr. Sieczkowski asked for support from the utilities. Ken Ritchey will request Representative Ron Larson, chairman of the LB&A Committee to review the issue and take appropriate actions to avoid further delays. Mr. Sieczkowski reviewed year end energy generation figures and reservoir levels presented at the O&D meeting. It was noted that if the 47,000 acre feet ! Draft Operation and Dispatch Subcommittee Meeting Minutes, June 10, 1992, page 3. e:\dburger\word \mimutes \pmo\6-92 BPMC Meeting June 16, 1992 page 5 of 8 if. of ponded water had been used, it would have equaled the allocated amount of energy. Installation of a common ring-down circuit (tying CEA, HEA, GVEA, MEA, and ML&P dispatch centers together) to avoid a repeat of the communications problems that occurred during the June 3, 1992 outage was discussed by the O&D Subcommittee. The Subcommittee approved recommendation of the common ring-down circuit. Mr. Sieczkowski anticipates having cost information and possibly a proposal ready for consideration at the next BPMC meeting. In response to comment by Mr. McConnell, Mr. Sieczkowski noted that spin had been discussed at the O&D meeting. The consensus of the subcommittee was that the Scheduling & Allocation Agreement language was clear and no further clarification was needed. Reading from the meeting minutes, Mr. Sieczkowski stated, "Available spin is based on, and directly proportional to, the utility's project share." The O&D Subcommittee did not recognize a need to change or modify the language. Mr. McConnell noted that the 27 megawatt spin limit number is an interim number based on PTI studies and was subject to change as results of additional PTI studies become available. REVIEW OF PROJECT STATUS Mr. Eberle reported that ABB has completed Phase I of the Static Var Compensator System (SVC) contract work at the Daves Creek and Soldotna substations. Phase II work (installation of grounding mats, foundations, and putting up the building), now underway, was awarded to City Electric. The simulator testing is scheduled to take place July 20, 1992 in Switzerland. Representatives from SWEC, PTI, AEA and the TCS will witness the testing. ABA and Fuji have reached a settlement on the efficiency issue. The settlement was for $200,000.00, which was the upper end of the ‘present worth' estimates for efficiency lossess. The only remaining issue requiring Fuji participation is bearing oil mist getting into some of the equipment. Filter systems are being tried to resolve the problem. An electronic precipitator may be tried as well. The DECnet problems have not yet been resolved. AEA is ready "to go up the Landis & Gyr chain of command" if the problems are not resolved soon. ¢:\dburger\word \mimutes \pmc\6-92 BPMC Meeting June 16, 1992 page 6 of 8 12. OLD BUSINESS A. SPINNING RESERVES/UNDER FREQUENCY LOAD SHEDDING - UPDATE Tom Lovas reported that the ASCC Reliability Criteria Committee is in the process of preparing a statement of its philosophy. The committee is investigating the possibility of hiring a consultant from NERC who's area of expertise is reliability assessment and in particular, equity and allocation issues. ASCC expects to receive a scope of work within the next two weeks. Completion of the Under Frequency Load Shedding Study has been delayed until July 15, 1992 due to PTI's involvement with other Bradley issues. Upon completion of the Under Frequency Load Shedding Study (with Bradley cases) for the IOC, the ASCC is planning a new series of tests specifically developed for the ASCC. The new series of tests will investigate unconstrained generations of the system under a range of alternatives. It is anticipated that this work will be funded by the ASCC. Costs are expected to be around $4,000 - $5,000 for the NERC consultant and as much as $30,000 for the PTI work. HEA BRADLEY ECONOMY SALES TO GVEA - UPDATE No comment or discussion was brought before the BPMC on this issue. . 13. NEW BUSINESS - A. SECTION 31 FUND BALANCE Mr. Saxton noted that at the time the power sales agreement was negotiated, the utilities requested that utility costs related to the construction of the Bradley Project be included in the bond sale to allow capitalizing the cost over the life of the bond. These costs (designated Section 31 costs) are now nearing the bond provision of $1,655,000.00. A breakdown by utility of Section 31 costs was provided to the committee (Attachment 2). The current available fund balance was noted at $67,479.94 (excluding costs expected to be brought before the BPMC for approval during this meeting.) Mr. Saxton anticipates that the remaining Section 31 balance will be used within the next two months. At that time, costs approved as BPMC expenses will have to be ¢:\dburger\word\mimutes \pmc\6-92 BPMC Meeting June 16, 1992 page 7 of 8 paid out of the committee's O&M budget. Mr. Saxton stated that the FY92 and FY93 O&M budgets both provided for the utility expenses, however no FY92 money had been used. APPROVAL OF COMMITTEE EXPENSES A chart of Bradley Lake related utility expenses for March through May 15, 1992 was distributed to the committee (Attachment 3). Mr. Highers motioned, seconded by Mr. Ritchey, to approve reimbursement of the submitted utility costs. The motion was approved unanimously without comment or discussion. APPOINTMENT OF NOMINATING COMMITTEE Chairman Kelly reminded the committee that new officers would be elected at the July meeting. Without objection, Chairman Kelly appointed Dave Highers, Chairman, Tom Stahr, and Ken Ritchey to serve as a nominating committee. The nominating committee was tasked to provide its proposals for next year's officers at the July BPMC meeting. BRADLEY CONSTRUCTION AUDIT Chairman Kelly suggested that this was an appropriate time for the BPMC to give consideration to a construction cost audit of the Bradley Project noting that, although not required, audits were traditionally done at the end of construction. Mr. Saxton informed the committee that no express provision had been included in the bond agreement for an audit and that, if an audit was requested and treated as a project cost, the utilities were obligated to pay fifty percent of the cost. Ms. Manni stated that the project had been audited in sections and stated that an additional audit would not add information. Chairman Kelly requested Ken Ritchey's budget committee review AEA's numbers to assure the utilities that audits had been done. Chairman Kelly speculated that an additional formal audit would not be needed, however stated that, if an audit was desired, this was the time to make that determination. The item will be discussed further at the next BPMC meeting. DIVISION OF INFORMATION SERVICES Previously discussed under Item 10. ¢:\dburger\word minutes \pmo\6-92 BPMC Meeting June 16, 1992 page 8 14, 15. Attest: of 8 F. BRADLEY ISSUES BEFORE THE APUC RELATED TO HEA AND CEA CEA and HEA are working to resolve their dispute. The general consensus was that it would be prudent for the dispute to be settled without the APUC. Tom Stahr suggested that resolution of the dispute might be addressed through independent arbitration. Ms. Manni introduced discussion on the Bradley project construction fund balance, informing the committee that attempts were being made by legislators to re-appropriate the state's fifty percent share of the under-run funds. Based on the fact that the project is not yet entirely complete, the Energy Authority has made a recommendation to the Governor opposing the re-appropriation at this time. Ms. Manni suggested the utilities may wish to contact their legislators regarding this issue. A copy of the Energy Authority's Veto Analysis will be forwarded to the utilities. COMMUNICATIONS A. SCHEDULE NEXT MEETING July 23, 1992 10:00 a.m. CEA Training Room ADJOURNMENT - There being no further business, the committee adjourned at 11:05 a.m. Mike Kelly, Chairman Brent N. Petrie, Secretary ¢:\dburger\word \minutes \pmo\6-92 DRAFT BRADLEY LAKE HYDROELECTRIC PROJECT OPERATIONS & DISPATCH SUBCOMMITTEE MEETING June 10, 1992 The subcommittee met in the Alaska Energy Authority conference room at 10:00 a.m. In attendance were: 1.0 2.0 Subcommittee Members: Stanley E. Sieczkowski, Alaska Energy Authority Brad Evans, Chugach Electric Association Doug Hall, Anchorage Municipal Light & Power Marvin Riddle, Golden Valley Electric Association Sam Matthews, Homer Electric Association Myles Yerkes, Homer Electric Association Participating Utility Representatives and Visitors: Dave Burlingame, Chugach Electric Association Brian Kingle, Chugach Electric Association Eric Marchegiani, Alaska Energy Authority Larry Wolf, Alaska Energy Authority Denise Burger, Alaska Energy Authority ADOPTION OF MEETING MINUTES The meeting minutes of May 14, 1992 were approved as submitted. APPROVAL OF AGENDA The agenda was modified to include: 4.2C CLARIFICATION OF SCHEDULING 4.2D CLARIFICATION OF SPINNING RESERVE e:\dburger\word\minutes\o&d\6-92 ATTACHMENT 1 Operations & Dispatch Subcommittee Meeting June 10, 1992 page 2 3.0 |. SUBCOMMITTEE CORRESPONDENCE The following were distributed at the meeting: Bradley Lake Power Loadings (June 1992 - May 1993) (Eric Marchegiani) Bradley Lake Hydroelectric Project, Elevation vs. Volume (Eric Marchegiani) Bradley Lake Use Allocation (Eric Marchegiani) Bradley Lake Elevation /with graph (Eric Marchegiani) The following was noted but not distributed at the meeting: Fax from Brian Kingle to Stan Sieczkowski regarding operation figures. 3.1 BRADLEY PROJECT UPDATE A. e:\dburger\word \minutes\o&d\6-92 OPERATIONS The calendar year-to-date generation is 171,500 megawatt hours. Radio Communi¢at tions: . The Division of Information Services (DIS) has installed new radios. The lower Bradley River USGS gage site is now working and needs to be calibrated by USGS. Communications to the upper Bradley RTU's will be available after installation of additional communication line hardware within the next two weeks. The Nuka repeater problem is being worked on by DIS. Data-link: DIS is evaluating the problem. Dave Eberle is coordinating resolution of the problem with SWEC, Landis & Gyr, AEA, and DIS. Operations & Dispatch Subcommittee Meeting June 10, 1992 page 3 Microwave Upgrade: Approval of the transfer of $250,000 to the DIS for the microwave upgrade is expected at the next Legislative Budget and Audit meeting on June 15, 1992. Outage: Causes of the June 3, 1992 outage are being investigated by CEA. Brad Evans provided a synopsis of outage events to the subcommittee. Discussion followed on the rendered ineffectiveness of the digital system monitor (DSM) and the communications problems that occurred between the utilities. Stan Sieczkowski recognized operator responsibility for placing a DSM switch in the graphic mode. The subcommittee was assured that corrective action would be taken to prevent a repeat of the action. Discussion focused on the installation of a common ring-down circuit as a solution to the communication problem. General consensus was formed among the subcommittee members in support of pursuing installation of a common ring-down circuit. CEA will recommend this plan in the outage report expected to be issued next week. CEA noted it will also be issuing an operations bulletin on restricted line outages, adding that, as much as possible, accommodations would be made to facilitate HEA conductor repairs. 4.0 WORK SESSION 4.1 OPERATING LIMIT CRITERIA Marvin Riddle motioned, seconded by Brad Evans that the subcommittee accept the recommendations to replace the minimum levels on page 17 of the Dispatch Operations Summary with the BPMC approved minimums. The motion was approved without objection. e:\dburger\word\minutes\o&d\6-92 Operations & Dispatch Subcommittee Meeting June 10, 1992 page 4 4.2 ALLOCATION & SCHEDULING PROCEDURES A. e:\dburger\word\minutes\o&d\6-92 STORING WATER CRITERIA Eric Marchegiani noted the water year on the spread sheets distributed to the subcommittee had been modified to reflect the water year as defined in the Operations & Dispatch Agreement (June through May). It was also noted that if conditions remain as anticipated, the June 1 ponded water (47,033 acre feet) will virtually equal the unused reservoir (47,808 acre feet). It was recommended that a method to show any energy carryover into the next year be established. Brian Kingle and Eric Marchegiani will develop an accounting procedure plan to present to the subcommittee. EXHIBIT B - DESCRIPTION OF PROJECT OPERATING CRITERIA Postponed until next meeting. CLARIFICATION OF SCHEDULING Doug Hall expressed ML&P's concern to the subcommittee that the "side deal" between GVEA and CEA was not in compliance with the Scheduling & Allocation Agreement. Discussion among all other subcommittee members favored a different interpretation of the agreement. The consensus of the remainder of the subcommittee was that the agreement language was clear, giving each utility the right to barter, give away, or sell its share of capacity. It was determined that no further clarification was needed. CLARIFICATION OF SPIN Spin is limited to 27 megawatts. Available spin is based on, and directly proportional to, the utility's project share amount. Discussion resulted in the general conclusion that the utilization of project spin was a railbelt utility issue. Operations & Dispatch Subcommittee Meeting June 10, 1992 page 5 5.0 SUBCOMMITTEE ACTIONS AND RECOMMENDATIONS RING - DOWN CIRCUIT Brad Evans motioned, seconded by Marvin Riddle that the Operations & Dispatch Subcommittee recommend the Bradley PMC approve funding for the installation of a common ring-down circuit at the designated site of each participating utility. The motion was approved without objection. The total cost was estimated to be roughly $15,000 - $20,000 ($3,000 - $5,000/site). 6.0 |NEXT MEETING DATE AND LOCATION Tuesday, July 14, 1992 10:00 a.m. Alaska Energy Authority Conference Room e:\dburger\word\minutes\o&d\6-92 DOVl OY AK CACRUT ALIMURI 11 - o-2 a ATTACHMENT 2 Alaska Energy Authority Bradley Lake Hydroelectric Project Section 31 Costs 2 — sont Nuniber Amount Paid hugach Elect FALigibee 199] sete apie caste ieee Pe) US ee ee BONA mbet 990 EESSEESEEEEEAGE: WERE si "PEGE TETEEET. SEEESnrsasnaay Ee Ta@S Ey cue asvORGTOBeL Sud BUAETEREL 2 SOU EBENE TED D TETETSSERREIES] | Golden Valley Electric Association | = | ss —CS™~S—S | Mgrol 1S 1G Se a ee BP 1695 |e ee Ooo JIA rail S 9) O [isstte tes ease atc pias U Qn [cee ee O62 asain August 28, 1990 U2 Septembe 3, 1991 March 16, 1992 ees U 26 rset | eee 2S OOO Ree JANA acy al pe] 992 ieccccreergesedb terse beeseseseeiettrg | etme) 29 Mcrae: | Oe Sete 2920.0 7c Rea | Alaska Energy & Transmission =| CT C“‘“‘CSC*C‘*CS August 28, 1990 85,724.00 SE Se pM PT |e S| Homer Electric Association, Inc. ii | ea ee August 2sig9o. © 1 83,400.00 December 31, 1990 | BPll2 | 1,826.25 eptemb 1991 November 15, 1991 363.30 fay 1, 199 U30 1,260.00 ENERGY: 1 SIL 99 a etsattetece resets ee essere eS 360.00 ESS Eggs gered eas | eter eee] ee eect eee Matanuska Electric Association, Inc. [| | August 28, 1990 U3 65,873.00 {Esa sees eee eae oes Municip: ght & Power ees | Augistize AON 2 oe US | 288,324.00 ‘ovember 15, 1991 U23 5,606.68 November 15, 199 May 1, 1992 May 15, 1992 91Q3\TJ1322(1) Prepared by William J. Sobolesky, May 26, 1992 -yZ +) 14-UD + AN CYCRUI ALINUNRIILIT~ SUD 220 UII = Ovi Ol AN CACRUL aciNvRiil + j7eG7de 44°US +) an VVCRuUl acilivhiiie UU 2c Ui = 2 Req. Date Number Amount Paid Ater, Wynne, Hewitt (legal fees 32,415.48 31,819.52 March 15, 1990 U12 21,139.42 October 1, 1991 November 15, 1991 U25 13,001.64 March 16, 1992 16,670.94 Mai 1992 028 83.8 Total Costs to Date 1,587,520.0 : Y«A655,000.00 "67479.04 |_____ Total CoststoDate | eel meseenialsieciaangitiastpomclficacubanruiagadied 91Q3\T31322(2) Prepared by William J. Sobolesky, May 26, 1992 ATTACHMENT 3 ATER WYNNE vanswii 8° HEWITT Portland, Oregon 97201-6618 (503) 226-1191 DODSON Fax (503) 226-0079 & SKERRITT RNEYS AT LAW RECEIV oes June 4, 1992 ED JUN 0 £ 1992 VIA _ FEDERAL EXPRESS ALASAA ENERGY AUTHORITY Brent Petrie Alaska Energy Authority 701 East Tudor Road Anchorage, AK 99510-0869 Re: Bradley Lake Utility Expenses Through May 1 1992 Dear Brent: Enclosed is a revised chart of unreimbursed Bradley Lake costs that includes expenses submitted to Ater Wynne from the utility members. I have enclosed all documentation received along with documentation for legal fees and expenses incurred during the same time period. Let me know if you have any questions. Sincerely, has G. Westby, Legal Assistant Encl. EGW\077egw. let Seattle, Washington Washington, D.C. San Francisco, California Affiliated offices in (206) 623-4711 (202) 785-0303 (415) 421-4143 Anchorage, Fairbanks Fax (206) 467-8406 Fax (202) 785-8676 Fax (415) 989-1263 and Juneau, Alaska eg -» YY WN = SECTION 31 COSTS . Piso do. Buspe CHUGACH: No costs submitted. GVEA: Includes cost information from February through April, 1992. HOMER: Includes cost information from February through April, 1992. MATANUSKA: Cost form claims zero expenses from December 15, 1991 through May 15, 1992. ML&P: No costs submitted. SEWARD: Includes cost information from January through April, 1992. ATER WYNNE: Includes legal fees and costs from through March 23, through April 30, 1992. Suomoecromy EGW \ BPM UNREIMBURSED BRADLEY LAKE COSTS COSTS INCURRED March through May, 1992 As Submitted to Ater Wynne PROJECT COSTS BPP 1990 UTILITY OPINION 81.26 H} tlt ft tt th TT FT Ha TT Tt fi TT TTT le] | | dt fT Ti