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HomeMy WebLinkAboutBPMC Meeting October 26, 1993 1ALASKA INDUSTRIAL DEVELOPMENT * AND EXPORT AUTHORITY = ALASKA @ = ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 561-8050 FAX 907 /561-8998 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES OCTOBER 26, 1993 No signed copy of the minutes have been located at this time. Please note that the October 26, 1993 minutes were approved at the PMC meeting of November 18, 1993. Motion by Mike Kelly, seconded by Norm Story. The following corrections and additions were noted: Under paragraph 8, Agreements Subcommittee Report, Mr. Story stated that the paragraph which reads: “Mr. Stahr stated that the Agreements Subcommittee had not met since last Tuesday.” should be changed to read: “Mr. Sieczkowski stated that the Agreements Subcommittee had not met since the last PMC meeting.” Mr. Huffman asked that his name be added under “Others Present,” as he was in attendance at the October 26th meeting. The recorder stated that several people’s names had been omitted under “Others Presenter” at that meeting. She said the omission had been noted, and the minutes would be revised to include the names of all persons present prior to the minutes being submitted for the Chairman’s signature. On page 2, Mr. Cooley noted that the word “DEGNET” in the first sentence of the third paragraph of Item 6., Technical Coordinating Subcommittee Report, should be changed to “DECNET”. Thereeing no further corrections, the minutes were approved as revised. i. 3. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE DRAFT MEETING MINUTES October 26, 1993 CALL TO ORDER Chairman Highers called the Bradley Lake Hydroelectric Project Management Committee to order at 10:00 a.m. in the Training Room at Chugach Electric Association in Anchorage, Alaska, to conduct the business of the Committee per the agenda and public notice. ROLL CALL Alaska Energy Authority Dennis McCrohan, Designated Representative Chugach Electric Association David L. Highers, Designated Representative and Chairman Golden Valley Electric Association Bradley Evans, 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 Larry Wolf, Alaska Energy Authority Brent Petrie, Alaska Energy Authority David Burlingame, Chugach Electric Association John S. Cooley, Chugach Electric Association Mike Kelly, Golden Valley Electric Association Myles Yerkes, Homer Electric Association Moe Aslam, Municipal Light & Power Tim McConnell, Municipal Light & Power Dave Hutchens, Alaska Rural Electric Cooperative Association PUBLIC COMMENT There being no public comment, the meeting continued to the next item. Bradley Lake Proje Management Committee Meeting Minutes - vuccober 26, 1993 Page 2 of 8 4. AGENDA COMMENTS There were no comments regarding the agenda. APPROVAL OF MEETING MINUTES - September 21, 1993 Norm Story moved to approve the minutes of the September 21, 1993 meeting. Seconded by Ken Ritchey. The motion passed unanimously. TECHNICAL COORDINATING SUBCOMMITTEE REPORT Mr. Burlingame reported that most of the SVC projects had been completed. He said that at the time of the TCS meeting on September 30, 1993, the SVCs were scheduled for capacitor replacement, and that project has been completed. Mr. Bur- lingame stated some of the capacitors were a larger K-bar size than the specs called for; therefore, those that did not meet spec requirements would again have to be replaced; this project is tentatively scheduled for December. The larger-than-spec capacitors will be used as spares. Mr. Burlingame reported that the annual Bradley Lake mainte- nance outage scheduled for October 2 to 20, 1993, was under way but had to be canceled due to the high in-flows received throughout the entire summer. Much of the work was completed during the October outage; however, a second outage has been scheduled from December 4 through 18, 1993, to install governor cards and complete maintenance that wasn’t completed during the previous outage. Mr. Burlingame reported that the DEGNET project is completed, although Golden Valley and ML&P may not have completed all of their work yet. Mr. Burlingame stated that test results of the new governors installed in May were very favorable. SWEC was asked to review the capacitor fusing, and they recom- mended that some of the capacitors remain unfused. SWEC also reviewed the SVC protection changes and recommended they be implemented. Regarding the SVC control studies, Mr. Burlingame stated that AEA and an ABB rep reviewed the intent of the studies. He said the final operating configuration, the final SVC model, the Bradley governor models, etc., are virtually identical to the design specs. Mr. Burlingame elaborated on other findings of the ABB with regard to the studies. Discussion followed. BUDGET SUBCOMMITTEE REPORT Mr. Ritchey reported that the Budget Subcommittee had held a brief teleconference and is currently working on the FY ‘95 Bradley Lake Proj Management Committee Meeting Minutes - uctober 26, 1993 Page 3 of 8 10. 11. budget as well as revision of the FY ‘94 budget. Mr. Ritchey stated that Committee members Tom Lovas and Marianne had been asked to research the adequacy of the clerical and accounting support network. AGREEMENTS SUBCOMMITTEE REPORT Mr. Stahr stated that the Agreements Subcommittee had not met since last Tuesday. OPERATION AND DISPATCH SUBCOMMITTEE REPORT Mr. Wolf advised the Committee that no outages had been reported prior to the last meeting of the O&D Committee. Synch-check relay installation for the 115 is in progress; the parts order has been initiated, and the Bradley operations crew will perform the installation. Mr. Wolf elaborated on the cancellation of the outage as reported by Mr. Burlingame earlier. He added that the outage scheduled for December 4 through the 18 has been coordinated with Woodward’s work on the governor card upgrade project and will require outage of only one unit. Mr. Wolf reported that Woodward and SWEC will arrive December 13, and installation and testing of the cards is expected to take approximately four days. Actions taken by the O&D Committee included a motion passed denying HEA’s request for station service payment for the Soldotna SVS and a motion passed to authorize a 100-megawatt output from Bradley when the lake level is above 1175’ in conjunction with the Davis Creek export. With regard to the October outage, Mr. Wolf stated that he had sent out a notice of a "pending" spill; his notice should have stated "potential" spill. REVIEW OF PROJECT STATUS Mr. Eberle reported that ABB has been requested to submit a proposal to make the protection changes at the Soldotna SVC. OLD BUSINESS A. Spinning Reserves Update No report at this time. B. Bradley Scheduling vs. Spin Requirement Update Mr. Saxton reported that he had distributed a final draft memo dated September 27, 1993, titled Railbelt Reserve Bradley Lake Proje Management Committee Meeting Minutes - uccober 26, 1993 Page 4 of 8 Issues, Jurisdiction and Authority for Resolution, at the last meeting outlining his perception of how the issues related to the operation of the I0C. The Committee members were to have reviewed his draft memo and provide him their input, if any. He stated he had received only one letter, from Tom Stahr, in response. He asked the Committee for guidance regarding further action he should take and added that he felt if the Committee wished to pursue this issue, it would have to determine the procedures for doing so. Mr. Evans stated that the Committee members should provide their input, and the issues that aren’t relevant to PMC jurisdiction should be delegated to the agencies that do have jurisdiction. Mr. Stahr suggested that in the other work the Committee is doing on the grant and participation agreement, the IOC be incorporated under the IPG, and the IPG be responsible for dealing with this issue. Mr. Stahr said it is imperative to give the IOC the policy direction it needs on a continuing basis. He added that he envi- sioned the concept, along with the organizational struc- ture, being incorporated into one of the agreements. Mr. Story stated that this issue should go back to the operating entity -- the managers and the technical people. Mr. Kelly stated that the intertie agreements were sched- uled to be concluded by November 15. He said if the participation agreements could be completed by that date, the PMC would then be able to discuss these issues and rearrange its priorities. Mr. Ritchey said that if these issues are discussed, he would like to see presentations so that the Committee could be informed as to all sides of an issue. Mr. Ritchey concurred with Mr. Stahr’s suggestion to use the IPG. Mr. Highers pointed out that this may complicate the participation agreements, and the IOC agreement may need to be amended in order to use the IPG. Mr. Stahr strongly recommended that the technical people analyze what is required to maintain adequate spinning reserve on the systems in order to prevent first-stage load-shedding, etc. -- what is required to stabilize the system. Discussion followed. Mr. Highers asked if a couple of Committee members would volunteer to develop an agenda to be given to the managers around the first of December. Mr. Story suggested defer- ring this issue to Mr. Evan’s subcommittee to research and come up with recommendations for the PMC’s review. The Committee concurred with Mr. Story’s suggestion as the first step in the process. Bradley Lake Proje Management Committee Meeting Minutes - uctober 26, 1993 Page 5 of 8 c. Master Operating Agreement Update Mr. Saxton stated that a copy of the draft Master Operating Agreement (between PMC and AIDEA), dated October 19, 1993, had been sent to all Committee members. He said the indi- vidual utilities hadn’t had much time to review the draft Agreement; however, he and Mr. McCrohan were prepared to present it to the Committee for consideration at this time. Mr. Saxton pointed out that AIDEA/AEA are anxious to move forward with drafting the agreement with Homer, as well as completing the other agreements, and the Master Operating Agreement must be completed first in order to do this. Mr. Saxton stated that the Committee’s input was needed in order to complete these agreements as soon as possible. Mr. Kelly stated that Mr. Riddle’s initial review indicates that the Master Operating Agreement is a sound document, and generally speaking, they don’t have any problems with it. He pointed out that most of the responsibility remains in the PMC, which ensures a safety valve. HEA O&M Agreement - Terms and Conditions Mr. McCrohan passed out a draft of the HEA/AEA Operating and Maintenance Agreement. He said one of the exhibits contained in that agreement is Section 7 of the Master Operating Agreement. Mr. McCrohan explained that the intent of the agreement between HEA and AEA is to assure that tasks which the PMC may assume in the future will be delegated to the PMC, in effect, ensuring that the agree- ment remains viable in any situation. Mr. McCrohan reported that topics of discussion to date between AEA and HEA were a five-year agreement with one- year renewals and the scope of Homer’s duties responsibili- ties, including the current on-site operations and mainte- nance, as well as a proposal that most of the duties be transferred from AEA’s jurisdiction, with a few exceptions. He stated that FERC licensing, studies, and technical work remain under AEA’s jurisdiction at this time; however, this issue was still open for discussion and should be consid- ered by the PMC. In addition, Mr. McCrohan said it was still undecided who would be responsible for several duties and responsibilities, including analysis and management of the fuel and water supplies. He added that HEA would be responsible for engineering, management, and work site operations, including ensuring satisfactory work progress. Mr. McCrohan reported that, in addition, AEA proposes to transfer to HEA the task of updating and maintaining all project related records, including drawings and files, as well as archiving responsibilities. Bradley Lake Proje Management Committee Meeting Minutes - uctober 26, 1993 Page 6 of 8 Mr. McCrohan explained that the HEA/AEA Operating and Maintenance Agreement is secondary to the Power Sales Agreement, and provisions of Section 7 of the Master Operating Agreement are incorporated into the HEA/AEA Operating and Maintenance Agreement. Mr. Calvert stated that the negotiations with the State have been satisfactory, and that Mr. McCrohan has kept the process on track and progressing. Mr. Saxton urged the PMC to review the Agreement and participate in its development with regard to issues of importance to the Committee. He said he had identified several issues that are worthy of discussion by the PMC, and he stated that the Committee should schedule these items in its agenda. Mr. McCrohan added that his staff is scheduled to demobilize by the end of the year. He explained that they will continue their contractual arrangements, but in-house staff will no longer be avail- able. He said discussions are ongoing with HEA in this regard. Discussion followed regarding standard insurance require- ments. Mr. McCrohan reported that AEA has completed its FY ‘95 budget, utilizing some of Homer’s numbers. He said HEA and AEA met the previous day with regard to their proposed FY '94 budget. In addition, he stated that AEA has reevaluat- ed the FY '94 budget with regard to what their anticipated time costs will be with the assumptions they’ve made relative to delegated duties. Mr. McCrohan requested that a settlement discussion regarding the overhead litigation be scheduled prior to going to Ken’s group with their numbers. He expressed his confidence that the budget discussions could be accom- plished quickly, possibly within the next two weeks. Mr. Saxton stated he would be happy to outline the five or six issues, distribute them to the group, and schedule a teleconference on an expedited basis. Mr. Saxton requested a deadline for the utilities to submit their list of issues to him for inclusion in his outline. Mr. Ritchey suggested a one-week deadline so that Mr. Saxton could distribute the outline within 10 days and schedule a teleconference. There was a consensus of the Committee on this issue. Mr. Story suggested that, in the interest of saving time, the information be submitted to the Budget Subcommittee for its review prior to presentation to the full PMC. The Board concurred. Bradley Lake Proje Management Committee Meeting Minutes - uctober 26, 1993 Page 7 of 8 Mr. Story pointed out that there are some unresolved issues regarding the scope of the duties to be transferred to HEA, which have slowed down the budget development process. He asked if this group should discuss how these issues will be resolved or if these issues will be resolved at a later time when this group meets on the contract. He added that this is a separate question from actually reviewing the contract as far as substance. Mr. Saxton stated that some issues are circular, adding that cost considerations would need to be taken into account. Mr. McCrohan agreed, stating that they wanted to ensure that the responsibilities are delegated in a cost- effective manner. Mr. Story suggested that the subcommit- tee also focus on drawing conclusions as to the remaining open items. Discussion followed. Homer Electric Association/Alaska Energy Authority/Project Management Committee Duties Mr. McCrohan passed out a revised matrix of each party’s duties and briefly summarized the handout for the Commit- tee. He explained that it was proposed that each party be responsible for developing their own budgets. In addition, HEA would be responsible for engineering and project related work, as well as procurement. Water management, FERC issues, and some general and administrative duties were still open for discussion. He added that the items outlined in the matrix have been reviewed by counsel, and these items can be legally delegated to HEA. BPMC Bylaws - Subcommittee Authority/Voting Procedures Mr. Saxton said he had sent a document to all the Committee members last week entitled, Bradley Project Management Committee Resolution #93- , dealing with changes to the Bylaws. He said he had attempted to incorporate Committee member input into his draft. Mr. Saxton read current Section 6.2 and the proposed revision into the record. Mr. Saxton explained that subcommittees are not currently permitted to make final decisions on any matter. His reso- lution would permit the PMC to expressly direct the subcom- mittee to make final decisions in limited specific matters and lays out the parameters for doing so. Mr. Saxton said a majority vote is required to change the Bylaws. Mr. Ritchey moved to adopt Mr. Saxton’s resolution permit- ting the PMC to delegate decision-making matters to subcommittees. Seconded by Mr. Kelly. Mr. Story asked if each item or issue would need to be Bradley Lake Proj Management Committee e@ c Meeting Minutes - tober 26, 1993 Page 8 of 8 reviewed by the PMC and specifically delegated to the subcommittee for decision-making. Mr. Saxton clarified that the Committee could delegate an ongoing responsibility to a subcommittee, such as delegating the ongoing ability to make budget revisions. Likewise, Mr. Saxton stated that the PMC would have the power to rescind the delegation of responsibility. The motion was approved by unanimous roll call vote (Action 93-181). 12. NEW BUSINESS A. Approval of Legal Expenses and Other Payments Mr. Ritchey moved to approve payment of $15,261.12 for Committee legal expenses for the month of September 1993. Seconded by Mr. Kelly. A roll call vote was taken, and the motion was approved with one nay. (Action 93-182). 13. COMMITTEE COMMENTS A. Next Meeting Date Thursday, November 18, 1993 10:00 a.m. Chugach Electric Association Mr. Brent Petrie’s Last Meeting Prior to adjourning, Mr. Highers stated that this would be Mr. Petrie’s last meeting. He said he thought he spoke on behalf of everyone when he said he appreciated Mr. Petrie’s participation on the Committee and Mr. Petrie would be missed. Mr. Petrie responded that he didn’t know what the future holds, but he has enjoyed working with the PMC members and perhaps there would be a chance to work with the people on the Committee again. 14. ADJOURNMENT There being no further business of the Committee, the meeting was adjourned at 11:45 a.m. BY: David L. Highers, Chairman ATTEST: Dennis V. McCrohan, Secretary