HomeMy WebLinkAboutBPMC Meeting - August 17, 1993 2TO:
FROM:
DATE:
RE:
ATTACHMENT 1
MEMORANDUM RECORD Vor
FILE NO
ARo_3-tt men Ron Saxton /7/93
Liz Westby ~
August 16, 1993
Duties Assigned to the Bradley Lake Project Management
Committee Subcommittees
The following tasks were assigned to BPMC Subcommittees (as
referenced in the BPMC meeting minutes):
AGREEMENTS SUBCOMMITTEE
Action Items:
Update Allocation and Scheduling Agreement Exhibits C and D.
(Minutes 1/13/92, p. 3)
Work on Maintenance and Right of Way Agreements with
Homer. (Minutes 1/13/92, p. 3)
Advisory items:
Review Dispatch Agreement. (Minutes 11/19/91, p. 3)
Review and follow-up on:
Allocation and Scheduling Agreement Exhibit A
Dispatch Agreement
= Transmission Facility Maintenance
- Facilities Interconnected Dispatch
: Communications MOU
SVCS Draft Agreement
Daves Creek Substation
Soldotna Substation (Minutes 3/26/92, p. 4)
All utility agreements should be presented to the PMC
concurrently (even though some are ready). (Minutes 7/23/92)
BupGET (AND FINANCE) SUBCOMMITTE
Action Items:
Develop draft definitions of Project (construction) costs versus
utility costs. (Minutes 7/28/89, p. 4)
Establish uniform accounting procedures for utility cost
reimbursement. (Minutes 7/28/89, p. 4)
Prepare FY93 budget. (Minutes 11/19/91, p. 2)
Hire an auditor to perform an O&M cost audit, subject to
budgetary constraints. (Minutes 11/20/92, p. 10)
Hire a consultant to perform the Bradley Lake construction
cost audit. (Minutes 11/20/92, p. 10)
Advisory Items:
Review issues:
- cash flow timing;
budget revisions subsequent to budget adoption;
reserve accounting;
AEA staffing and overhead costs;
transmission costs;
environmental studies costs;
Intertie budget component. (Minutes 2/27/90, p. 3-4)
HEA Transmission Line Maintenance;
c AEA Costs;
7 CEA Software;
: Dispatching labor costs. (Minutes 5/17/90, p. 4-5)
Review of CEA and HEA Wheeling Agreement costs, and
insurance. (Minutes 5/17/90, p. 6)
Address the sinking fund payment that SWEC came up with
for the scheduled maintenance and replacement of
equipment. (Minutes 7/17/90, p. 8)
Look at Homer Electric O&M expenses for the transmission
line. (Minutes 7/2/91, p. 3)
Analysis and discussion of (1) payments to the trustee to
eliminate the cashflow problem, and (2) timing of payments.
(Minutes 7/2/91, p.4)
Review final project construction budget and provide
comments to AEA prior to 5/20/93. (Minutes 5/13/93, p. 7)
Manage budget line items. A 10% increase in the overall
budget will need BPMC approval. (Minutes 1/14/93, p. 13)
OPERATING AND DISPATCH AGREEMENT SUBCOMMITTEE
Action Items:
Engage services of a consultant to assist with drafting
language for the Allocation and Scheduling Agreement.
(Minutes 5/4/89, p. 6)
Draft Bradley Lake Allocation and Scheduling Agreement.
(Minutes 10/19/89, p. 5). Revise Scheduling & Allocation
Procedures. (Minutes 3/3/93, p. 10)
Develop agreements:
Dispatch Agreement between AEA and CEA
Maintenance Agreement between AEA and Maintenance Contractor
Transmission Facilities Maintenance Agreement between
AEA and HEA
Participants Allocation & Scheduling Agreement
Substation Maintenance Agreement between AEA and HEA
- Joint Operations Agreement between CEA and HEA
- Communications Equipment Agreement between AEA
and Division of Telecommunications
- Soldotna #1 Dispatch Agreement between CEA and
AEG&T (Minutes 7/28/89, p. 4)
Develop a method for tracking and accounting for costs
associated with dispatching during generation tests from Bradley Lake. (Minutes 6/6/91, p. 2)
Develop procedures to allow the Bradley participants to
readily note or record Chugach's service needs for Kenai area
combustion turbine versus those conditions of providing
combustion turbine to support the operation of Bradley Lake.
(Minutes 7/2/91, p. 3)
Work on the problem of cleaning intakes. (Minutes 1/14/93, p.
6)
Advisory items:
Review of draft Dispatch Agreement. Work on 2 issues: (1)
spinning reserve, and (2) losses on the Homer transmission
system. (Minutes 2/27/90, p. 4)
Review results of SWEC model on spill allocation. (Minutes
4/6/90, p. 5)
Review comments on Dispatch Agreement and reservoir
model. (Minutes 11/19/91, p. 3)
Review of SCADA communications problem. (Minutes 3/26/92,
Pio)
Discuss load restoration procedures, loss and billing
procedures. (Minutes 6/6/91, p. 4)
Subcommittee informed PMC of new procedures regarding
single unit operation. (Minutes 7/23/92, p. 4-5)
With help from the TCS, investigate frequency oscillations
associated with islanding of the Bradley system. (Minutes
7/23/92, p. 13)
TECHNICAL COORDINATING SUBCOMMITTEE
Action Items:
Develop draft operation and maintenance definitions and
responsibilities. (Minutes 8/29/88, p. 4)
Provide an opinion on test period power agreement, interim
operational period. (Minutes 7/17/90, p. 7)
=A.
Approve SCADA point list. (Minutes 9/21/90, p. 2)
Develop operating scenarios with 80 MW and 90 MW caps.
(Minutes 6/6/91, p. 7)
Set the operating criteria for Bradley based on Homer Electric
and Seward being subject to no more than stage two load
shedding for any single contingency event, using interim
operating criteria until such time as the final operating
conditions are adopted by the PMC. (Minutes 7/2/91, p. 3)
Expansion of Bradley Lake Operating Conditions, interim
operating levels. (Minutes 4/28/92, Attachment A, p. 2)
Identify proposed long-term solutions to islanding problem.
(Minutes 7/23/92, p. 13)
Advisory Items:
Meet with SEI regarding their assessment of reliability of the
Bradley Junction to Fritz Creek transmission line. (Minutes 1/20/89, p. 2)
Review bids for SCADA system. (Minutes 3/3/89, p. 2)
Make presentation to PMC regarding proposed PTI 115 kV
additions. (Minutes 4/6/89, p. 2)
Review scope of work for system stability studies prepared by
SWEC and proposal from PTI to complete additional stability
work. (Minutes 6/8/89, p. 3)
Review of software program DECNET. (Minutes 6/8/89, p. 3)
Review and presentation of Load Acceptance Analysis report prepared by SWEC. (Minutes 1/18/90, p. 2)
Study of microwave link between Divcom and CEA main headquarters. (Minutes 1/18/90, p. 8)
Review, approve SWEC's recommendation on the installation
of the braking resistor, installation of digital stabilizers on the units, installation of one SVS at the Daves Creek side and in
Soldotna. (Minutes, 11/28/90, p. 2)
-5-
Review how the project should be operated under different
scenarios and define certain operation constraints. (Minutes
11/28/90, p.2 )
Review overfrequency tripping for Cooper Lake to try and
control the frequency during times of high Kenai energy
export. (Minutes 3/5/91, p. 2)
Determine the maximum Kenai import (i.e. minimum Bradley
Lake operating limit without a gas turbine on-line, assuming
that any single contingency event will not result in more than
a reasonable loss of load (and define "reasonable"). (Minutes
3/5/91, p. 3)
Review of PTI study of operating restraints for the testing and
commissioning phase. (Minutes 6/6/91, p. 2)
Work with SWEC to gather all operating restrictions and
recommendations relating to Bradley Lake within the past 2-3
years into one document for reference. (Minutes 6/6/91, p. 3)
Oversee SWEC sponsored tests and other utility required tests.
(Minutes 8/23/91, p. 3)
Review Bradley Lake Operating Manuals. (Minutes 8/23/91, p. 3)
Review of PTI Bradley Lake/Kenai Operating Guidelines.
(Minutes 11/19/91, p. 2)
Review of Bradley Lake Dispatcher Guidelines Summary.
(Minutes 1/13/92, p. 4)
Report on results of exciter tests. (Minutes 2/28/92, p. 2)
With help from the Operations and Dispatch Subcommittee,
investigate frequency oscillations associated with islanding of
the Bradley system. (Minutes 7/23/92, p. 13)
ATER WYNNE mpswite 0
HEWITT Fortin, gn 9720
DODSON Fax (503) 226-0079
& SKERRITT
ATTORNEYS AT LAW
August 9, 1993 PRO B-hl
Kenneth Ritchey
Matanuska Electric Association, Inc.
P.O. Box 2929
Palmer, AK 99645-2929
Re: Railbelt Utilities Group
Dear Ken:
Enclosed are statements for RUG general and legislation
implementation matters. In addition to the regular RUG/BPMC
issues, there is time included for the IOC work that the RUG
authorized.
Also enclosed is a reminder statement for the May bill on
the bond refinancing matter. This has apparently fallen through
the cracks somewhere at AEA. Thanks for your assistance.
Please let me know if there arg,any questions.
Singerply,
Ronald L. Saxton
Encls.
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ese se WOVOEVLES vt Tee
BPR ee AT rye 8/57/93
EPMO WEETING =, AS. ; Spee] oe, Pgie 3
Seattle, Washington Washington, D.C San Francisco, California Affihated 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
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08/16/93 11:29am
BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE
RESOLUTION NO. 93-
v
A RESOLUTION AMENDING ARTICLE 6.2 OF THE BRADLEY PROJECT MANAGEMENT
COMMITTEE BYLAWS
WHEREAS, the Agreement for the Sale and Purchase of Electric Power of the Bradley Lake
Hydroelectric Project § 13(b) allows the Bradley Lake Project Management Committee (Committee) to
adopt procedural rules governing the conduct of the Committee’s affairs;
WHEREAS, the Committee adopted Bylaws which specify the manner in which the Committee
will act and section 6.2 states that the Committee may not delegate its decision-making duties to any
special purpose committee;
WHEREAS, the Committee finds it necessary to amend its Bylaws to allow the special purpose
committees to make decisions when properly instructed and authorized by the Committee.
NOW, THEREFORE BE IT RESOLVED that the Committee hereby amends section 6.2 of the
Bylaws as follows:
6.2 Powers. The Committee may delegate its decision-making duties to a special purpose
committee.
6.2.1 Authorization. Special purpose committees may only act upon Committee matters
when authorized to do so by the Committee.
6.2.1 Voting Requirements. Decisions made by a special purpose committee shall be
by affirmative vote of a majority of the members of a special purpose committee.
6.2.2 Decisions Reviewable. The Committee may affirm, modify or reject any decision
of a special purpose committee.
BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE
By:
Chairman
BY:
Secretary
DATE:
DATE:
TO:
FROM:
SUBJECT:
Alaska Energy Authority
MEMORANDUM
AEA/UTIL/0020
August 5, 1993
Bradley Lake Project Management Committee
David L. Highers, Chugach Electric Association
Norm Story, Homer Electric Association
Ken Ritchey, Matanuska Electric Association
Dave Calvert, City of Seward Tom Stahr, Anchorage Municipal Light & Power
Mike Kelly, Golden Valley Electric Association Ron Saxton, Ater Wynne Hewitt Dodson & Skerritt
Dennis V. McCroha:
Secretary OM Gshon
Project Management Committee
Notice of Meeting - August 17, 1993
RECORD VOPY FILE NO
The next meeting of the Bradley Lake Project Management Committee
will be held Tuesday, August 17, 1993. 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, review, and
files:
° Agenda - August 17, 1993
° Updated List of BPMC Representatives
° Resolution 93-11
° Draft Meeting Minutes - July 22, 1993
° Approved Meeting Minutes - June 17, 1993
DB:DVM:db
cc: Vince Mottola, Fairbanks Municipal Utilities System
Ronald A. Garzini, Alaska Energy Authority
Stanley E. Sieczkowski, Alaska Energy Authority
Larry Wolf, Alaska Energy Authority
David R. Eberle, Alaska Energy Authority
Brent N. Petrie, Alaska Energy Authority
BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE
MEETING AGENDA
August 17, 1993
Chugach Electric Association, Inc. Training Room
10:00 a.m.
CALL TO ORDER 10:00 a.m. Highers
ROLL CALL
PUBLIC COMMENT
AGENDA COMMENTS
APPROVAL OF MEETING MINUTES - July 22, 1993
TECHNICAL COORDINATING SUBCOMMITTEE REPORT Burlingame
BUDGET SUBCOMMITTEE REPORT Ritchey
A. Bradley Lake Construction Cost Audit Update
B. Bradley Lake O&M Cost Audit Update
AGREEMENTS SUBCOMMITTEE REPORT Sieczkowski
OPERATION AND DISPATCH SUBCOMMITTEE REPORT - Eberle
REVIEW OF PROJECT STATUS Eberle
OLD BUSINESS
A. Spinning Reserves/Under Frequency Load Shedding Update Lovas
B. Bradley Scheduling vs. Spin Requirement Update Saxton
Cc. BPMC Control Over O&M Decisions and Agreements
Master Agreement Saxton
Dz O&M Contract - Update Story
E. BPMC Bylaws - Subcommittee Authority/Voting Procedures Saxton
NEW BUSINESS
A. Approval of Legal Expenses and Other Payments Ritchey
COMMUNICATIONS
A. Schedule Next Meeting
ADJOURNMENT
BRADLE\ wAKE PROJECT MANAGEMENT CUMMITTEE
RESOLUTION 93 - 11
A RESOLUTION of the Bradley Lake Project Management Committee (BPMC) regarding the
authority of the Budget Subcommittee to adjust budgets for annual Project costs as defined under Section
8 (a) (vii) of the Bradley Lake Power Sales Agreement (PSA).
WHEREAS the BPMC is authorized by the Bradley Lake Power Sales Agreement to adopt
budgets for annual operating and maintenance (O&M) costs as defined under Section 8 (a) (vii) of the
PSA for the operation of the Bradley Lake Hydroelectric Project and to make amendments to the budget
from time to time; and
WHEREAS the Budget Subcommittee of the BPMC is charged with researching and preparing
the O&M budget and amendments thereto; and
WHEREAS the Budget Subcommittee may meet on shorter notice and with more frequency than
the BPMC; and
WHEREAS the BPMC has determined that periodic minor O&M budget adjustments may be
necessary for smooth and efficient operation of the project and BPMC; and
NOW, THEREFORE BE IT RESOLVED that the BPMC authorizes the Budget Subcommittee
to make budget adjustments within line items of the adopted budget; and
BE IT FURTHER RESOLVED that the BPMC further authorizes the Budget Subcommittee to
increase the adopted total O&M budget up to ten percent (10%) of the initially adopted total amount
when necessary to meet unforeseen operating expenditures; and
BE IT FURTHER RESOLVED that nothing in the authorization changes duties and
responsibilities of the parties established by the Bradley Lake Power Sales Agreement; and
BE IT FURTHER RESOLVED that the Budget Subcommittee shall report such changes to the
BPMC at the BPMC's next scheduled meeting.
ADOPTED by the Bradley Lake Project Management Committee at a regular meeting of the
Committee held July 22, 1993.
BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE BY:
ATTEST: Bust) CAs Brent N. Petrie, Secretary
David L. Highers}
DATE: | R x 19@3
dburger\word\minutes\pmc\res93-1 1
“(BRAD EY LAKE PROJECT MANAGEMENT COMMITTEE
DRAFT MEETING MINUTES
July 22, 1993
1. CALL TO ORDER
Chairman Highers called the Bradley Lake Hydroelectric Project Management
Committee to order at 10:15 a.m. in the Training Room at Chugach Electric
Association in Anchorage, Alaska to conduct the business of the Committee per
the agenda and the public notice.
2. ROLL CALL
Alaska Energy Authority
Dennis McCrohan, Designated Representative
Chugach Electric Association
David L. Highers, Designated Representative and Chairman
Golden Valley Electric Association
Mike Kelly, Designated Representative
City of Seward
Dave Calvert, 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 & Skerritt
Bob Hufman, Alaska Electric Generation & Transmission Cooperative
Dave Hutchens, Alaska Rural Electric Cooperative Association
David Burlingame, Chugach Electric Association
John Cooley, Chugach Electric Association
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BPMC Meeting Minut-.
July 22, 1993
Page 2 of 10
Gene Bjornstad, Chugach Electric Association
B Evans, Golden Valley Electric Association
on , Matanuska Electric Association
ys Aslam, Municipal Light & Power
Tim McConnell, Municipal Light & Power
Bob Price, Municipal Light & Power
Dave Fair, Homer Electric Association
Myles Yerkes, Homer Electric Association
Brent Petrie, Alaska Energy Authority
David R. Eberle, Alaska Energy Authority
Stanley E. Sieczkowski, Alaska Energy Authority
Denise Burger, Alaska Energy Authority
Chairman Highers welcomed Dennis McCrohan, Deputy Director of Energy,
Alaska Industrial Development and Export Authority (AIDEA). Mr. McCrohan
will represent Alaska Energy Authority on the Bradley Lake and Four Dam
Pool Project Management Committees.
35 PUBLIC COMMENT
There being no public comment, the meeting continued to the next agenda item.
4. AGENDA COMMENTS
The following items were added to the agenda:
12.C. Acceptance of HEA's Application for the Operation and Maintenance of
Bradley Lake
12.D. Approval of SVC Testing Power Costs
12.E. Interim SVC Maintenance Agreement
12.F. Legal Opinion on O&D Subcommittee Authority
by APPROVAL OF MEETING MINUTES
Minutes of the June 17, 1993 meetings were approved as submitted.
6. TECHNICAL COORDINATING SUBCOMMITTEE REPORT
Mr. Burlingame stated the Technical Coordinating Subcommittee had not met.
It is anticipated that PTI will complete the final Bradley Lake operating study by
the end of July 1993. Mr. Burlingame expects the TCS to hold its final meeting
in August to review and accept the study recommendations.
dburger\word\minutes\pmc\07-93
BPMC Meeting Minut..
July 22, 1993
Page 3 of 10
7. BUDGET SUBCOMMITTEE REPORT
( ; Mr. ih spore the Budget Subcommittee held a teleconference on July 1,
Subcommittee is reviewing the costs for maintenance of Homer
tric's Bradley Junction and Soldotna line with HEA.
Mr. Ritchey reported the FY94 wheeling rate, under the Transmission Services
Agreement was expected to be slightly lower than the FY93 rate of $.023. The
Budget Subcommittee is awaiting the final wheeling information from Chugach
Electric Association.
The Subcommittee approved modifications to the FY94 budget to accommodate
the cost of the FY94 Stream Gage Program ($110,000). The cost of the FY94
Stream Gage Program was included in the budget narrative, but was overlooked
in the line items. Mr. Ritchey noted several budget line items were reduced by
a total of $110,000, however the adopted FY94 budget total remained
unchanged.
A. Construction Cost Audit Update
The Subcommittee has received the final draft of the Construction Cost
Audit. Mr. Ritchey noted that efforts were being made to arrange a
presentation of the audit to the BPMC by Mr. Brian Walshe of Metzler
and Associates.
B. O&M Audit Update
Parisena Stromberg & Associates has completed the 1992 O&M cost
audit. Mr. Ritchey stated clarification of a few items was still needed.
8. AGREEMENTS SUBCOMMITTEE REPORT
Mr. Sieczkowski reported the Agreement Subcommittee had not met.
Mr. Sieczkowski stated that he and Mr. Saxton had met, however, and
discussed the master operating agreement. Further comments were deferred to
Mr. Saxton under agenda item 11. C.
9. O&D SUBCOMMITTEE REPORT
Mr. Eberle stated the O&D Subcommittee met on July 8, 1993. Merits of
changing the water year were discussed by the Subcommittee, but were judged
insufficient to justify a change at the present time.
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BPMC Meeting Minutv.
July 22, 1993
Page 4 of 10
10.
Mr. Eberle reported the Subcommittee discussed concerns over the lack of a
ea greement for the Daves Creek and Soldotna substations. It was
Chugach Electric Association had been performing minor maintenance of the
facilities. To ensure that necessary maintenance continued, the Subcommittee
recommended the BPMC approve an interim letter agreement (between AEA
and CEA). Additionally, the Subcommittee proposed to review the substation
maintenance expenses, prior to payment, until the full agreement was in place.
The Subcommittee also approved forwarding the following SVC testing costs to
the BPMC for payment:
Chugach Electric Association $352,798.77
Municipal Light & Power 16,323.33
Mr. Eberle noted that CEA submitted only the cost of additional power
generation and no labor, and that AML&P included $1,603 labor costs in its
billing. HEA initially submitted costs which included labor, but subsequently
withdrew them. The City of Seward had not yet requested reimbursement for
SVC testing costs, however, apparently was planning to submit a request.
Mr. Eberle stated that the O&D Subcommittee approved a motion to formally
advise the BPMC of the differences in the submitted testing costs.
Mr. Eberle informed the Committee that the O&D Subcommittee was
discussing both station service and equipment SVC losses. The BPMC was
advised that provisions for these losses would need to be addressed in the O&M
budget. The Subcommittee will be revising and updating the Allocation &
Scheduling Procedures. Current interim procedures will be revised to final
operating procedures and then brought to the BPMC for approval.
Mr. Eberle stated the Project's yearly maintenance is scheduled the first two
weeks of October, pending approval by the utilities. During the maintenance
outage, ABB will be installing the replacement capacitors and the new Soldotna
breaker.
REVIEW OF PROJECT STATUS
Mr. Eberle recommended that $100,000 of Project construction funds be
reserved for future clean-up of the remaining underwater debris in the fish water
bypass intake channel. Explaining there was no urgency to complete the clean-
up, Mr. Eberle stated that it could be done for approximately $50,000 at a
reservoir level low enough to permit use of heavy equipment. Utilizing divers
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BPMC Meeting Minutv.
July 22, 1993
Page 5 of 10
to do the work now would cost an estimated $160,000 - $180,000 and was not
necessary. sponse to inquiry by Mr. Saxton, Mr. Eberle explained the
se held by the trustee bank. It was noted that, to date,
“poi ely $200,000 had been spent on the previous diving operation to
r the fish water bypass intake area.
11. OLD BUSINESS
A.
B.
Spinning Reserve / Under Frequency Load Shedding Update
Bradley Scheduling vs. Spin Requirement Update
Mr. Cooley reported on behalf of Mr. Lovas that Mr. Lovas and
Mr. Saxton had been working on categorizing spinning reserve policy
and technical issues. It was expected that the various issues would be
defined by the next Committee meeting. The Alaska Systems
Coordinating Council (ASCC) is also waiting on the review being done
by Mr. Lovas and Mr. Saxton.
Mr. Burlingame added that approval of the new load shedding schedule
was expected at a meeting later in the day.
BPMC Control Over O&M Decisions and Agreements - Master
Operating Agreement
Mr. Saxton reported that he, Stan Sieczkowski, and Jim Klasen, assistant
Attorney General, agreed that the concept of the master operating
agreement was workable. A meeting was scheduled later in the day to
discuss specific details of the agreement. Mr. Saxton expected some
delay on the agreement progress until AIDEA became more familiar
with the operation and maintenance of the Bradley Lake Project.
Budget Subcommittee Authority - Resolution 93-11
Mr. Petrie explained that the purpose of the resolution was to give the
Budget Subcommittee authority to adjust line items within the budget and
authority to adjust the budget up to ten percent of the total. Mr. Petrie
revised the phrase approved budget, where it appeared, to read adopted
budget. It was noted that the phrase adopted budget did not necessarily
mean the budget was approved by the Committee. Mr. Petrie moved to
adopt Resolution 93-11, as modified. Seconded by Mr. Kelly, the
motion was approved by unanimous roll call vote (Action 93-181).
Prior to the vote, Mr. Petrie explained that AEA was currently
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BPMC Meeting Minutv.
July 22, 1993
Page 6 of 10
represented on the Budget Subcommittee and the assumption was made
that¢h Energy Authority will continue to be represented on the st) Fo
pee Mr. Saxton addressed the issue of subcommittee authority, stating that,
though somewhat confusing, the bylaws clearly intended that specific
authority could be delegated to subcommittees. Mr. Saxton
recommended that the Committee clarify the bylaws, replacing the
section which states "The BPMC may not delegate its decision making
duties to any special purpose committees" with "Special purpose
committees shall exercise only such powers as are expressly delegated by
the Committee." Mr. Saxton added the proposed revision would help
clear up pending questions on O&D Subcommittee authority.
Mr. Ritchey moved that the Committee bylaws be amended as
recommended by Mr. Saxton. Mr. Kelly seconded the motion,
commenting that, in order to avoid potential confusion, authority should
be delegated to the subcommittees by resolution. Mr. Stahr moved that
the motion be tabled to allow study of the bylaws and any potential
impacts created by the proposed change. Mr. Kelly seconded the motion
to table Mr. Ritchey's motion. Hearing no objection, Chairman Highers
tabled the motion until the next scheduled Committee meeting (Action
93-182).
With the approval of Chairman Highers, Mr. Eberle introduced
discussion of New Business, Item 12. F., Legal Opinion on O&D
Subcommittee Authority. Mr. Eberle reported that the O&D
Subcommittee approved a motion stating that the following questions be
brought to the Bradley Lake Project Management Committee for
clarification:
1. What, if any, items has the BPMC delegated to the O&D
Subcommittee to take independent action on.
2. | What voting procedures should the Subcommittee use.
3. | Under the BPMC bylaws, does the BPMC have the authority to
delegate powers to subcommittees.
It was suggested by Mr. Eberle that these issues be considered during
Mr. Saxton's review of the BPMC bylaws.
Mr. Saxton will distribute a copy of the current BPMC bylaws to the
Committee members along with a list of actions taken by the Committee.
dburger\word\minutes\pmc\07-93
BPMC Meetin,
July 22, 1993
Page 7 of 10
pas
g Minutes
Mr. Kelly recommended that any past delegations to the subcommittees,
whi not out of date, be drafted into resolutions for consideration at
a ye achoduled BPMC meeting. Mr. Yerkes raised the question of
committee voting procedures. Mr. Saxton responded that the issue
was not specifically addressed in the Power Sales Agreement (PSA) or
Committee bylaws, adding that decisions in the Budget Subcommittee
were generally made by consensus of the majority. Mr. Saxton
suggested that the same weighted voting procedures developed for the
BPMC be observed by the subcommittees. Mr. Kelly recommended that
past actions taken by the subcommittees be affirmed and that it be made
clear that the proposed change does not alter past subcommittee actions.
Additionally, Mr. Kelly proposed subcommittee voting procedures by
majority consensus and that voting be limited to the designated,
authorized subcommittee representative. The issue will be discussed
further at the next Committee meeting.
12. NEW BUSINESS
A. Nomination and Election of Officers
Mr. Kelly, Mr. Calvert and Mr. Story were previously asked to serve as
the nominating committee by Chairman Highers. Mr. Kelly reported
that the nominating committee had met and recommends that the current
officers continue to serve the Committee, noting that Mr. McCrohan, as
the designated representative for the Energy Authority, would serve as
Secretary. Mr. Kelly invited nominations from the floor, however, no
further nominations were heard. Mr. Kelly moved the Committee
unanimously accept the proposed nominations. Seconded by Mr. Story,
the motion was approved by unanimous roll call vote (Action 93-183).
Approval of Legal Expenses and Other Payments
Mr. Ritchey moved the Committee approve payments of $17,602.62 and
$23,345.03 to Ater Wynne Hewitt Dodson & Skerritt for Mr. Saxton's
legal counsel to the Committee during the months of May and June
1993. Seconded by Mr. Story, the motion was approved by unanimous
roll call vote Action 93-184).
Acceptance of HEA's Application for the Operation and
Maintenance of Bradley Lake
Mr. Story moved that the BPMC accept the Homer Electric Association
application, dated July 22, 1993, for the operation and maintenance of
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BPMC Meeting Minutv.
July 22, 1993
Page 8 of 10
the Bradley Lake Hydroelectric Project for submission to Alaska Energy
ity to be used as a basis to negotiate with the Energy Authorit
ject Management Committee to develop a final budget and
tract. The motion, seconded by Mr. Ritchey was approved b
unanimo! Il call vote (Action 93-185). !
Mr. Story requested that the Chairman appoint a team to assist with
contract and budget negotiations. Mr. Kelly recommended that each
utility general manager, or appointed designee, be represented on the
team. Mr. Story already anticipated involving the utilities in the interim
development process of the operation and maintenance proposal prior to
negotiation with the Energy Authority and presentation to the BPMC.
Mr. Story expected planned work sessions among the utilities to take
place in Anchorage.
Mr. Ritchey recommended that the budget issues be separated from the
other issues and dealt with by the Budget Subcommittee, adding that
non-subcommittee members could participate in the discussions as well.
Mr. McCrohan stated that the Energy Authority preferred to negotiate
directly with Homer Electric Association before bringing the contract to
the Committee, or a designated group of the Committee, for approval.
Mr. Saxton pointed out that the negotiations would include three,
separate parties: Homer Electric Association, Alaska Energy Authority
and the Bradley Lake Project Management Committee.
It was the consensus of the BPMC that the utilities should be involved in
the informal development phase of the contract in order to allow
opportunity for input and discussion of utility concerns. The initial
development process will not include AEA. Mr. Stahr noted HEA's
efforts to include the utilities in the process to date and expected that
HEA will continue to include the utilities.
Mr. Saxton clarified that HEA would be negotiating with AEA as its
own representative and not as a representative of the BPMC. Mr. Story
confirmed that it was HEA's intent to, first, work with the utilities
during the development of the contract; second, negotiate the contract
with ABA; and third, present the contract to the BPMC for approval.
Mr. Story reiterated that all utility concerns would be resolved before the
contract was brought to AEA for negotiation.
1 No other applications were submitted to the Committee.
dburger\word\minutes\pmc\07-93
BPMC Meeting Minutv..
July 22, 1993
Page 9 of 10
E.
Although the Budget Subcommittee will be reviewing HEA's proposed
get, Mr. Saxton advised the Committee that the budget would need
approved separately and could not be agreed to in the contract.
Approval of SVC Testing Power Costs
Mr. Eberle reviewed the utility test power costs reported under agenda
Item 9, O&D Subcommittee Report. Mr. Eberle informed the
Committee that, initially, funds had not been budgeted for SVC test
power costs. The Subcommittee agreed that the SVC testing costs
should be capitalized, however did not specifically define which costs
would be included. Mr. Eberle explained that AEA assumed the utility
labor costs would be absorbed by the utilities, as had been the previous,
established practice. Mr. Eberle recommended that the direct expenses
and any personnel overtime costs directly attributable to the testing be
capitalized. Mr. Stahr stated that was the procedure that AML&P used
for billing its testing costs and proposed that all utility billings be
reviewed for demonstration of actual cost. Mr. Eberle pointed out that
CEA calculated the cost of test power and that it may be cumbersome to
reconstruct actual costs. Mr. Eberle acknowledged that future utility
cost reimbursements should be documented actual costs, but added that
this had not been determined in advance of the SVC testing.
Mr. Burlingame stated that CEA had documentation of its actual power
generation costs for SVC testing and offered to share that information.
Mr. Story moved that the SVC testing costs be reimbursed as submitted.
Seconded by Mr. Kelly, the motion was approved by unanimous roll call
vote (Action 93-186). It was clarified that any proposed labor costs
submitted for reimbursement should be incremental overtime costs, and
that billings expected from Homer Electric Association and the City of
Seward were included in the motion.
Interim SVC Maintenance Agreement
Mr. Eberle reiterated the importance of maintaining the SVC system and
recommended that, until the formal SVC maintenance agreements were
executed, of a letter agreement with Chugach Electric Association be
used to ensure continued maintenance. Additionally, Mr. Eberle
proposed, during the interim, under the letter agreement, the
maintenance costs be reviewed by the O&D Subcommittee for payment.
Mr. Kelly moved that the Committee approve Mr. Eberle's
recommendations. Seconded by Mr. Story, the motion was approved by
unanimous roll call vote (Action 93-187). Mr. Sieczkowski commented
that the SVC and Transmission Line Maintenance Contracts were
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BPMC Meeting Minut__
July 22, 1993
Page 10 of 10
13.
14,
Attest:
presently ready for signature, except for inclusion of the reference to the
ma: erating agreement, and that a budget amendment would be
Br o the Budget Subcommittee to cover the maintenance costs.
Other Items
Mr. Eberle recalled the Committee had previously requested
investigation of the cost of SVC system studies covering the effects of
the new Kenai transmission line. ASEA Brown Boveri (ABB) estimated
a cost of $88,000 to perform the studies. Mr. Eberle recommended the
studies be done through ABA's existing contract. Mr. Kelly moved that
an amount not to exceed $100,000 be authorized for ABB to perform
studies of the effect of the Southern Intertie on the SVC system. The
motion, seconded by Mr. Stahr, was approved by unanimous roll call
vote (Action 93-188). The cost of the studies will be capitalized as a
Bradley Lake Project cost.
COMMUNICATIONS
A. Schedule Next Meeting
Tuesday, August 17, 1993
10.00 a.m.
Chugach Electric Association Training Room
ADJOURNMENT
The meeting adjourned at 11:50 a.m.
David L. Highers, Chairman
Dennis McCrohan, Secretary
dburger\word\minutes\pme\07-93
BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE
APPROVED MEETING MINUTES
June 17, 1993
a: CALL TO ORDER
Chairman Highers called the Bradley Lake Hydroelectric Project Management
Committee to order at 10:10 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 N. Petrie, Designated Representative
Chugach Electric Association
David L. Highers, Designated Representative and Chairman
Golden Valley Electric Association
Mike Kelly, Designated Representative
City of Seward
Dave Calvert, Designated Representative
Homer Electric Association
Norm Story, Designated Representative
Matanuska Electric Association
Ken Ritchey, Designated Representative
Municipal Light & Power
Hank Nikkels, Alternate Representative
Others Present:
Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerritt
Bob Hufman, Alaska Electric Generation & Transmission Cooperative
David Burlingame, Chugach Electric Association
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BPMC Meeting Minutes
June 17, 1993
Page 2 of 9
5:
John Cooley, Chugach Electric Association
Jim Borden, Chugach Electric Association
Tom Lovas, Chugach Electric Association
Dan Bloomer, Chugach Electric Association
Jim Hall, Matanuska Electric Association
Mary Ann Pease, Municipal Light & Power
Tim McConnell, Municipal Light & Power
Bob Price, Municipal Light & Power
Dave Fair, Homer Electric Association
Ron Garzini, Alaska Energy Authority
David R. Eberle, Alaska Energy Authority
Eric Marchegiani, Alaska Energy Authority
Stanley E. Sieczkowski, Alaska Energy Authority
Denise Burger, Alaska Energy Authority
PUBLIC COMMENT
There being no public comment, the meeting continued to the next agenda item.
AGENDA COMMENTS
The following items were added to the agenda:
12.B. Approval of FY94 Payment Obligation
12.C. Approval of Other Payments
APPROVAL OF MINUTES - May 13, 1993
The minutes of the May 13, 1993 Bradley Project Management Committee
meeting were approved as submitted (Action 93-176).
TECHNICAL COORDINATING SUBCOMMITTEE REPORT
Mr. Burlingame reported that the TCS had not met. The TCS expects to meet
in July to review the results of the SVC system tests and to define the long term
operating guidelines of the Project.
BUDGET SUBCOMMITTEE REPORT
AS. Bradley Lake Construction Cost Audit Update
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Page 3 of 9
Mr. Ritchey expected the final report to be distributed in one week. The
Budget Subcommittee will meet in two weeks to discuss the report. Plans
are being made for a representative of Metzler & Associates to present the
report to the BPMC.
Bradley Lake O&M Cost Audit Update
The FY92 O&M cost audit is being reviewed and the Subcommittee is
awaiting clarification of some questions.
Other Budget Subcommittee Issues:
Mr. Ritchey noted that an error had been discovered in the approved FY94
O&M budget. Cost for the USGS stream gage program was included in
the narrative, however, did not appear as a line item. Other budget line
items will be adjusted to provide for the cost of the program ($110,000).
The changes will not effect the budget total. ;
Mr. Ritchey informed the Committee that the Budget Subcommittee was
preparing a resolution formalizing the authority of the Subcommittee to
make certain changes to the O&M budget. The resolution will be ready for
consideration at the next BPMC meeting. Other items being discussed by
the Subcommittee are the HEA Fritz Creek line costs and the CEA
wheeling issue.
Chairman Highers asked what impact the recent legislation affecting AEA
would have on the Bradley O&M budget. Mr. Petrie recommended that
the Committee wait until December or January, when new operation
arrangements were expected to be in place, before altering the budget or
utility payment schedule. Mr. Petrie added AEA was incurring unexpected
costs related to preparation for the transfer of operation responsibilities and
the on-site labor negotiations.
Referring to a memorandum issued by AEA, Mr. Petrie stated AEA was
requesting guidance from the Committee on the selection of an operation
and maintenance contractor for Bradley Lake (Attachment 1). Mr. Petrie
informed the Committee that a meeting of Four-Dam Pool, Bradley Lake
and other utilities was scheduled for July 7, 1993 at AEA to discuss the
transfer of tasks handle,by AEA to the utilities. Mr. Kelly expressed
concern over the contirluing availability of Energy Authority staff to
oversee the transition and recommended that the BPMC assert its authority
as the contracting power. Acknowledging there had been several previous
discussions on the BPMC authority to contract, Mr. Petrie stated AEA was
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BPMC Meeting Minutes
June 17, 1993
Page 4 of 9
responsible for contracting Project operation and maintenance, however,
the Power Sales Agreement gave the BPMC the authority to approve the
contract.
8. AGREEMENTS SUBCOMMITTEE REPORT
10.
Mr. Sieczkowski reported the Agreements Subcommittee had not met since the
last BPMC meeting.
OPERATION & DISPATCH SUBCOMMITTEE REPORT
Mr. Marchegiani reported the O&D Subcommittee met June 3, 1993. Under the
direction of the Subcommittee, AEA has contracted SWEC to perform a two
phase hydraulic transient stability analysis at a reservoir elevation below 1080".
April and May reservoir inflows were reported to be higher than anticipated. It is
speculated that the increased inflow is early snow melt due to the unusually warm
Spring weather. If the increased flow continues, a water reallocation is expected
about July 1.
Removal of loose rock above the water line at the fish water bypass intake channel
is complete. Mr. Marchegiani informed the Committee that material still remained
below the water line. AEA is investigating methods and costs to remove the
remaining material. Mr. Eberle stated that a recent sonar scan indicated debris
around one of the trash racks installed during the winter, however unless a low
reservoir level and high winds occur, the remaining debris is not expected to shift
or cause additional problems. At a reservoir level low enough to potentially cause
a problem, equipment can be brought in to remove the debris and remedy the
problem. Maintenance will probably be delayed until next year or when a low
enough reservoir occurs to facilitate the use of heavy equipment.
Mr. Marchegiani reported that the Woodward governor modification and testing
had been completed. Mr. Burlingame added the governor modification performed
well, doubling the governor response rate.
REVIEW OF PROJECT STATUS
Mr. Eberle informed the Committee that the new breaker for Soldotna was
expected to be delivered by mid-August. ABB has delayed the capacitor
replacement to September or October and has proposed a reduced number of
capacitors for replacement. AEA will either require an extended warranty or insist
upon full replacement of the capacitors. In response to concerns raised by CEA,
AEA is reviewing SVC protection controls with ABB, which may result in some
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BPMC Meeting Minutes
June 17, 1993
Page 5 of 9
modifications. AEA has requested information from ABB on the cost of additional
system studies. Mr. Eberle noted the AEA Board of Directors approved the final
Project budget of $314,500,000 at its May meeting. Documents are being
prepared to release the surplus appropriation ($12.1 million) back to the State.
OLD BUSINESS
A. Spinning Reserve / Under Frequency Load Shedding Update
Mr. Lovas reported institution of the under frequency load shedding
schedule was delayed until the end of June. Revisions proposed by GVEA
are currently under review. The relays are in place and ready to set.
The Alaska Systems Coordinating Council Reliability Criteria Committee
(ASCC - RCC) is reviewing final comments on the spinning reserve
proposals. The Committee expects to finalize a recommendation in the
near future.
Bradley Scheduling vs. Spin Requirement Update
Mr. Saxton distributed a summary chart of the spinning reserve issue
comments submitted from the utilities (Attachment 2). Noting the
summary included several issues other than Bradley spin, Mr. Kelly
recommended that the focus be narrowed to Bradley spin. Mr. Kelly
pointed out that several of the issues were presently being addressed by the
ASCC. Mr. Lovas stated the ASCC-RCC could handle the system
response and technical questions, however, not the related legal issues (i.e.,
responsibility for spinning reserve). Mr. Saxton will work with the RCC
(specifically, Chairman Tom Lovas) to delineate the technical and legal
issues. Mr. Lovas and Mr. Saxton will report back to the BPMC.
BPMC Control Over O&M Decisions and Agreements - Master
Agreement
Mr. Saxton reported that no further activity had occurred on the master
operating agreement due to questions created by the legislated changes at
AEA, however, the State Attorney General's office is currently
reviewing the draft master operating agreement. Mr. Saxton stated that
he and Mr. Sieczkowski were in accord on the basic substance of the
agreement and the BPMC contractual relationship in the agreement.
Mr. Sieczkowski informed the Committee that he would be meeting with
the Assistant Attorney General this afternoon to discuss final comments
on the draft agreement. Mr. Kelly expressed concern over the handling
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BPMC Meeting Minute.
June 17, 1993
Page 6 of 9
of contracting an operator for Bradley Lake - specifically, if the master
operating agreement provided contracting authority to the BPMC.
Mr. Saxton responded that the issue was taken care of by the proposed
master operating agreement. Mr. Saxton requested direction from the
BPMC on proceeding with the development of the master operating
agreement, recognizing that the Committee may prefer to wait until
other issues related to the transition of AEA are resolved.
Referring to AEA's letter requesting direction from the BPMC on the
selection of an operator for Bradley Lake, Mr. Garzini stated AEA
would, most likely, be responsive to the BPMC's choice. Expressing
the need to provide Alaska Industrial Development and Export Authority
(AIDEA) information and a schedule on the transfer of project O&M
responsibilities to the utilities, Mr. Garzini asked the utilities to submit
suggestions. Mr. Garzini added that, more than ever, it was necessary
for the utilities to work together in order to accomplish all that needed to
be done. Mr. Garzini reiterated that AEA would be responsive to the
BPMC.
Mr. Saxton advocated completion of the master operating agreement,
stating that completion of the remaining agreements had been put on
hold while the master operating agreement concept was developed.
Mr. Saxton explained that completing the master operating agreement
would enable completion of the remaining agreements. Additionally,
only minor changes to the already completed agreements were needed in
order to fit into the framework of the master operating agreement.
Mr. Garzini recommended that the BPMC select an operator.
Mr. Garzini stated that approval was expected by the Attorney General's
office for a sole source contract, adding that prompt action was needed
by the utilities. Mr. Saxton stated that remaining agreement issues,
including the master operating agreement could be resolved in a one or
two day meeting of the Agreements Subcommittee.
Mr. Story stated HEA would have an O&M proposal ready to submit to
AEA and the Bradley PMC within two weeks. Noting that the
introduction of the proposed master operating agreement had delayed the
completion of the three remaining HEA agreements, and recognizing the
need to expedite the agreements process, Mr. Story moved that the PMC
authorize Ron Saxton and Stan Sieczkowski to complete the master
operating agreement. The motion, seconded by Mr. Ritchey, was
approved by unanimous roll call vote (Action 93-177).
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BPMC Meeting Minutes
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Page 7 of 9
Mr. Story moved that the BPMC direct AEA to work solely with Homer
Electric Association to complete its proposal for the onsite operation and
maintenance of the Bradley Lake Hydroelectric Project, in accordance
with existing project agreements.'! Mr. Kelly asked if the issue of sole
source procurement of the Bradley Lake operation and maintenance
contract had been resolved. Mr. Garzini stated, because it was not a
typical procurement situation (i.e. the BPMC would actually be paying
for the contract), AEA could likely participate in a contract selected by
the BPMC. Mr. Garzini added that a formal legal opinion on the
procurement issue was requested by AEA. Related to the contracting
issue, Mr. Saxton stated that, according to the Power Sales Agreement,
the BPMC has the authority to chose the project operator and AEA has
the authority to veto the choice. Continuing, Mr. Saxton stated it was
his opinion that both AEA and the BPMC had authority to contract and
to veto the other's selection. Mr. Saxton added that the language of the
proposed master operating agreement allows the State to contract with
the operator and requires the approval of the BPMC. Mr. Kelly
recommended that the BPMC consider HEA's forthcoming proposal
while AEA obtained a legal opinion on State procurement requirements.
Mr. Garzini stated that, because of the State's responsibility to the FERC
license and bond requirements, AEA should be the contracting authority
and that the contract be subject to the approval of the BPMC.
Mr. Garzini requested that, if the BPMC develops a contract with an
operator, the FERC license, the bond holders and State's interests be
protected. Mr. Kelly strongly preferred the BPMC as the contractor,
acknowledging the need to maintain AEA's interest. Mr. Garzini later
offered an additional alternative, stating that AEA could contract with
the BPMC, which in turn, would contract with the project operator.
Mr. Story recognized AEA's obligations and its right to veto a contract
as well as its technical ability to assist with the development of an
operation and maintenance contract proposal. It is HEA's intent to work
with AEA to bring a two part proposal to the BPMC which would
identify the required services (Part 1) and the technical contract and
budget (Part 2). Mr. Story explained that HEA was in the process of
working with AEA and had not set up a structure to negotiate a contract
with the BPMC. The issue of which entity, the BPMC or AEA, would
ultimately be the contractor did not affect the development of the
operation and maintenance proposal. Mr. Story clarified the intent of
' Mr. Story's original motion did not contain the word solely. Mr. Story later added the word to clarify
the intent of the motion.
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BPMC Meeting Minutes
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Page 8 of 9
his motion was for the BPMC to direct AEA to work solely with HEA to
complete HEA's contract proposal for the operation and maintenance of
Bradley Lake. The propriety of HEA's request for exclusive assistance
from AEA was questioned. In an effort to expedite the process of
completing HEA's operation and maintenance proposal, Mr. Kelly
recommended the motion be amended as follows: The BPMC requests
AEA assist HEA with the preparation of an operation and maintenance
proposal for presentation at the next Bradley PMC meeting. Both Mr.
Story and Mr. Ritchey accepted the amended motion. Prior to the vote,
Chairman Highers clarified that the motion was not intended to be
interpreted as exclusive. Mr. Garzini stated that AEA was available to
any BPMC member who requested help. The amended motion was
approved by unanimous roll call vote (Action 93-178).
12. NEW BUSINESS
A. Operations Budget Contingency Fund Resolution
Mr. Petrie reported that the Budget Subcommittee was working on a
resolution delegating authority to the Budget Subcommittee and expected
to have it ready by the next BPMC meeting.
Approval of FY94 Payment Obligation
The FY94 utility payment schedule and cash flow was distributed to the
Committee. Mr. Ritchey noted that the BPMC had previously acted
upon the FY94 budget, however had not approved the FY94 utility
payment schedule (Attachment 3). Mr. Ritchey advised the Committee
that the fund balance (Cash Flow, line 8) may actually be higher than
shown, in which case the utility payment amount could be reduced in the
future. AEA is reviewing the figures. Mr. Ritchey moved to approve
the FY94 utility payment schedule. Seconded by Mr. Kelly, the motion
was approved by unanimous roll call vote ( Action 93-179).
Approval of Other Payments
Mr. Kelly moved to approve payments of approximately $3,600 to Bill
Bennett for legal assistance associated with the Bradley Lake labor
negotiations and $6,215.90 to Ron Saxton for legal counsel. Seconded
by Mr. Ritchey, the motion was approved by unanimous roll call vote
(Action 93-180).
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13. |. COMMUNICATIONS
A. Schedule Next Meeting
Thursday, July 22, 1993
10:00 a.m.
Chugach Electric Association
14. ADJOURNMENT
The meeting gdjourned at 12:30 p.m.
Brent N. Petrie, Secretary
dburger\word\minutes\pmc\06-93
ATTACHMENT 1
State of Alaska
DS Walter J. Hickel, Governor
Alaska Energy Authority
A Public Corporation
June 16, 1993
Bradley Lake Project
Management Committee Members
SUBJECT: Bradley Lake Hydroelectric Project Operation and Maintenance
Dear PMC Members:
The legislature adopted HCS CSSB106 that legislates the transfer of the Alaska Energy Authority projects and programs to the ene of ceo and Regional Affairs and the Alaska Industrial Development and Export Authority (AIDEA).
The apparent intent is to downsize the existing Alaska Energy Authority and contract services to the maximum extent possible. In pursuit of previous discussions with the Bradley Lake Project Management Committee (PMC) participants, it is the intent of the AEA to solicit proposals for the on-site operation and maintenance of the Bradley Lake Hydroelectric project.
The options are to advertise for proposals and do an evaluation and award or to negotiate an Operation and Maintenance contract with a qualified contractor specified by the PMC.
AEA hereby requests the Bradley Lake PMC to provide direction for ee proposals for the on-site operations and maintenance or to provide us with the Committee's recommendation for an on-site operator in accordance with the existing Bradley Lake project agreements.
A formal scope of work for the Operations and Maintenance contract can be developed by AEA. After negotiation of the contract with the AEA and approval of the contractor by the PMC, the contract will be sent to the AEA Board for consideration and action.
Sincerely, Gan
Ronald A. G Executive Director
RAG:SES:ds
ce: Riley Snell, AIDEA
PO. Box 190869 7014 East Tudor Road ~=Anchorage, Alaska 99519-0869 (907) 561-7877 Fax: (907) 561-8584
93Q2/MA4798(1) Page |
Railbelt Reserve Issues
| issue CHUGACH GVEA HOMER MATANUSKA ML&P |
GENERAL Lack of contractual
|} CONCERNS links between the _
Bradley PSA and AIA
has made incorporation
Concerned about |
practices which reduce
railbelt reserves below |
contractually required
levels; deteriorated
reliability; inequities in | |
of Bradley into the
Railbelt system more
difficult. burden of supplying
SILOS
2 second delay should
be accepted.
Loads should be
restored using spinning
reserve of other utilities
following a disturbance,
as long as firm loads
haven’t been
interrupted.
Extra spinning reserve
at times will prevent
SILOS.
spinning reserves.
Supports ASCC
efforts.
IOC contractual
responsibilities may
dictate development of
reliability criteria by
IOC--HEA doesn’t
support duplicative
efforts.
How should load
shed in lieu of spin
be treated?
No load shed in lieu of
spin should be
permitted until studies
show it will perform as
well as actual spin.
Load shed in lieu of
spin program must
satisfy basic contractual
requirements, based on
results.
2 LINSNHOVILY
CHUGACH
All spin shouldn’t be
treated equally.
Generators should be
connected to AGC in
order to count spin
from that unit as part of
a utility’s operating
reserve.
Indirect AGC shouldn’t
be allowed for the spin
to be fully counted as
operating reserve.
Supports a performance
factor system for
spinning reserves such
that slow responding
reserves do not count
the full amount towards
operating reserve or, in
the alterative, a limit on
the amount of slow
responding reserves
such as hydro.
GVEA MATANUSKA
Quality will determine
the amount of system
frequency decline
during the loss of
system generation or
facilities and amount
of customer loads
shed during
disturbances. Cannot
support relaxed spin
standards unless
supported by
reasonable analysis.
Is the unit under
AGC control?
How fast can the
unit respond?
SYSTEM
RESPONSE
DIFFERENCES
Should be compared
with PSS/E runs using
the actual loadflow and
generator loading from
just prior to the system
disturbance.
Reviews should be after
every major system
disturbance or when
requested by IOC
member.
SELLING OF
SPIN
Should not be allowed
unless the reserve is
backed up by a load
shed scheme or the sale
can be interrupted in a
time frame to prevent
first stage load shed.
Spinning reserves
loaded with "economy
energy sales” results
in reduced system
spinning reserves and
may reduce system
reliability. Practice
may not be equitable
to all involved
utilities. Should be
curtailed or limited to
improve overall
system reliability.
Selling spin isn’t
permitted in the AIA.
Economy energy sales
should be covered by
real spin at one end or
the other or by both.
Spin sold in
nonexistent.
| issue
LOCATION OF
SPINNING
RESERVES
cHUGACH HOMER MATANUSKA | MLaP |
Location and
distribution of spinning
reserve by geography,
interconnections, and
unit should not be
specified by the IOC,
unless reserves are
pooled. Only reserves
physically connected
with the interconnected
system should count
toward spinning
reserves.
Affects the ability of
the system to respond
to disturbances. Must
considered: (1) is the
total required system
reserves and criteria
for "pooling" reserves
equitable between
utilities; and (2) weak
transmission interties
erode reliability and
limit the ability to
economically schedule
generation. The
resulting unbalanced
generation during
disturbances opens
interties to island
sections. Doesn’t
directly relate to
reserves, but to
load/resource
scheduling in the
"island" areas. The
IOC should establish a
reliability standard by
region, if appropriate.
The IOC must
consider the ability of
the system to respond
and develop
operational criteria to
provide such
reliability.
Transmission
limitations should be
considered.
CHUGACH
| OPERATING
RESERVE
| CRITERIA
If SILOS is disabled
due to controller
unreliability, the owner
of the controller should
be obligated to supply
the amount of reserves
disabled while the
controller is fixed.
Controller reliability
criteria standards should
be determined by the
Relaying/Reliability
subcommittee of the
1oc.
SILO must be enabled
for the utility to count
SILOS for operating
reserves. Should
develop a pooling
mechanism to ensure
that the amount of on-
line operating reserves
always exceed the
minimum required.
The ASCC is the proper
forum to develop the
operating reserve
criteria.
Supports normal
treatment of reserve
obligations-- exceptions
to be justified,
approved.
Criteria necessary
regarding modification
or avoidance of reserve
requirements. May be
appropriate in certain
circumstances.
Can’t support relaxing
current spinning
reserve limitations.
BPMC doesn’t have
proper authority to
limit reserve
scheduling--it’s an
IOC issue.
MATANUSKA ML&P
How should spin
requirements be
handled when shares
are allocated?
Which criteria--size
of generation units,
amount of load,
kWh sales, historical
reliability, number
of units on-line
should be used to
allocated required
spin, and in what
combination?
Bradley is slow.
How should slower
units be counted
when calculating
required spin?
Must restore
contractually required
spin to the system. The
AIA is the only contract }
between the intertie
participants and is the
only area for the
resolution of
spin/loadshed concerns.
Spinning Reserve can’t
be changed by the IOC.
Operation can lower the
amount, but in no case
can it increase it.
Bradley units are slow
to respond. How
should spin that
responds more slowly
than normal be counted
when calculating
required spin?
| issue | cucacu HOMER
FORMULA Current allocation
formula is fair and
equitable. The
"penalty" for utilities
with large generators
is justified due to (1)
loss of larger machine
creates larger
disturbances; and (2)
utilities put on larger
machines due to
efficiency, with little
consideration for
reliability penalties.
Could support
modifications to
formula to
accommodate two
concerns.
STUDIES Additional studies
needed to determine the
maximum amount of
hydro spin that will
prevent first stage load
shed.
AEA RESERVE Doesn’t believe AEA
OBLIGATION? has a reserve
obligation.
MATANUSKA
Should study optimum
distribution of spin
between units or best
mixes of inertia
response, fast governor
response, slow machine
response and AGC
Tesponse.
[weve | ewvcacn
| ENTITLEMENT
TO SPIN
Water usage should be
necessary in order to
tap spinning reserve
capability.
Is the owner entitled
whenever a unit is
on line, or should a
minimum amount of
energy be
scheduled?
Who should pay for
energy required and
who can claim spin
if Bradley is
operated as a
synchronous
condenser?
BUTWPAY.XLS
ALASKA ENERGY AUTHORITY [|_| BRADLEY LAKE UTILITY PAYMENTS
ry [ i i oe l : ci
= Percent
Power purchasers |__| Share [Jul October_| November | December | J F March | April | May | |Chugach Electric Association “| 30.40% | $352,637 | $352,637 | $352,637 | $352,637 | $352,637 | $352,637 | $352,637 | $352,637 | $352,637 | $352,637 | $352,637 Municipality of Anchorage _ (25.90% | $300,438 | $300,438 | $300,438 | $300,438 | $300,438 | $300,438 | $300,438 | $300,438 | $300,438 | $300,438 | $300,438 Alaska Electric Generation & tel
Transmission Cooperative, Inc. (acting on iia) behalf of Homer Electric Association, - Inc.-12.0% and Matanuska Electric - ee
Association, Inc.-13.8%) | 25.80% | $299,278 | $299,278 $299,278 | $299,278 | $299,278 | $299,278 | $299,278 | $299,278 | $299,278 | $299,278 | $3,591,332 Golden Valley Electric association, Inc. | 16.90% | $196,038 | $196,038 $196,038 | $196,038 | $196,038 | $196,038 | $196,038 | $196,038 | $196,038 | $196,038 | $2,352,462 City of Seward | 1.00% | $11,600 | $11,600 $11,600 | $11,600 | $11,600 | $11,600 $11,600] $11,600] $11,600] $11,600] $139,199 Total | 100,00%| $1,159,991 | $1,159,991 $1,159,991 [$1,159,991 [$1,159,991 [$1,159,991 [$1,159,991 [$1,159,991 [$1,159,991 |$1,159,991 [$13,919,891 HOVLLY
FY-94 cash flow cell B-9 ($496,000) is the $910,000 excess of operating funds FY-92 less
$494,000 utilized on the FY-93 cash flow plus $80,000 estimated excess from FY-93
operating funds.
FY Toul
13,919,891
July
Tisai 496,000 721,601 139,835
934,390 1,000,156
2,635
1,312,500 5,381,621 10,763,2__ ? 81,906
o 13,470,147
670,811
22,719
105,726
05%6
335,000 249,608
4774171
2,998,169
2,818,710 3,824,699 amas