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HomeMy WebLinkAboutBPMC August 23, 1991 1FILE COPY i a v BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE August 23, 1991 1. CALL TO ORDER Chairman Kelly called the Bradley Lake Project Management Committee to order at 10:00 a.m. in the Training Room at Chugach Electric Association in Anchorage, AK, to conduct the business of the Committee per the agenda and the public notice. 2. ROLL CALL Alaska Energy Authority Charlie Bussell, Designated Representative Brent N. Petrie, Designated Alternate Chugach Electric Association, Inc. David L. Highers, Designated Representative Joe Griffith, Designated Alternate Golden Valley Electric Association, Inc. Mike Kelly, Designated Representative and Chairman City of Seward E. Paul Diener, Designated Representative Homer Electric Association, Inc. Norman L. Story, Designated Representative Matanuska Electric Association, Inc. James D. Hall, Designated Alternate Municipal Light and Power Thomas Stahr, Designated Representative 91Q3/D1475(1) * Bradley Lake Project nmittee Meeting Minutes August 23, 1991 Page 2 Others Present: Ron Saxton, Representing Ater, Wynne, Hewitt, Dodson & Skerrit Robert Hufman, Purchasing Utilities Dave Burlingame, Chugach Electric Association, Inc. David Eberle, Alaska Energy Authority John Cooley, Chugach Electric Association, Inc. Tim McConnell, Municipal Light and Power Moe Aslam, Municipal Light and Power Dave Fair, Homer Electric Association, Inc. Dave Calvert, City of Seward Penny Haldane, Alaska Energy Authority 3. PUBLIC COMMENT There was no public comment. 4. AGENDA COMMENTS The agenda was modified to include: 11. Old Business 135) | | 1¢ Section 31 Costs D. Approval of SVS Contract Award. 5. APPROVAL OF MINUTES Hearing no objection, the minutes from July 2, 1991 were approved as corrected. 6. TECHNICAL COORDINATING SUBCOMMITTEE REPORT Dave Burlingame reported on the Technical Coordinating Subcommittee (TCS) meeting August 15, 1991. All SWEC sponsored tests and other utility required tests have been completed. These tests identified some problems; subsequent tests of the solutions have proved satisfactory. 91Q3/3D1475(2) Bradley Lake Project nmittee Meeting Minutes August 23, 1991 Page 3 The plant operated at a level of 103 MW for 10-15 minutes, 90 MW for 1 hour, and survived a 90 MW load rejection of electrical power plus over 50 MW water waste. In terms of water load rejection it rejected 120 MW. The plant output is now considered firm and all participants are starting to schedule Bradley accordingly. At the last Bradley Lake Project Mangement Committee (BPMC) meeting the TCS was directed to perform an energy study evaluating how the minimum operating restrictions would affect the available energy of the plant. AEA completed those studies and found approximately 1% difference even after the utility revised energy forecasts were used. The Kenai import study is not critical at this time and is currently on hold till more studies are completed by PTI. The Bradley Lake Operating Manuals are expected to be ready for review/adoption at the next BPMC meeting and will be placed on the agenda as new business. Overall, the plant is doing well. John Cooley had a question on the efficiency and Dave Burlingame said that this is still an outstanding item that will be addressed by Fuji next week. In response to Chairman Kelly's question, Dave Burlingame reported that a full reservoir is expected around September 15. Therefore, the minimum operating level will not be a problem in the coming months. Moe Aslam commented that recent work evaluating the disturbances on July 20 and August 3rd, has increased the level of confidence in PTI. Chairman Kelly thanked Dave and his subcommittee for the good work and the helpful report. INSURANCE SUBCOMMITTEE REPORT Brent Petrie reported that the quotes on property and boiler insurance premiums were $110,000 less than budgeted. The recommendation of this subcommittee is to keep the budget as is until June 30, 1992, and apply any overage to the next 12 month premium payment. This will improve the current cash flow situation. Hearing no objection, it was agreed to treat the premium payments in this manner. 91Q3/JD1475(3) Bradley Lake Project nmittee Meeting Minutes August 23, 1991 Page 4 Brent also reported that the insurance subcommittee is preparing an application for business interruption insurance. The premium costs will be based on information provided in the application documents and is not known at this time. This will be an action item for a future meeting. BUDGET SUBCOMMITTEE REPORT Ron Saxton provided the Budget Subcommittee report in Ken Ritchey's absence. The payment levels were finalized and billed at a higher level for 4 months and a lower lever for the remaining 6 months. The BPMC is requested to begin thinking about the next budget, since the budget preparation process will begin in the next 6-8 weeks. The last thing to report is that there will be more cushion than originally anticipated due to Section 31 costs and the insurance expense. Mr. Saxton suggested that as a conservative approach, this cushion should be held till the following year when an adjustment would be made, although it is possible that a mid-year revision could occur if things go well. After additional discussion on Chugach and Homer rates, Chairman Kelly asked that concurrence on the elements be reached and distributed prior to the next meeting. These will be new business items at the next meeting. OPERATION AND DISPATCH SUBCOMMITTEE REPORT John Cooley reported that this subcommittee had not met since the last BPMC meeting. At the October 25, 1991, BPMC meeting; Stan Sieczkowski stated that the operation and dispatch subcommittee had met on July 25, 1991. Brent Petrie reported that Stan was weathered in at Wrangell, but had the documents with him and they were close to completion. Stan had expected that Brad Evans would be at the meeting today to provide a committee report. The committee will meet before the next meeting, review the final documents, and present them to the BPMC at the next meeting. Motion - Interim approval by the BPMC of the Agreement for the Dispatch of Electric Power and for Related Services ("Dispatch Agreement") by and among Chugach Electric Association, Inc. and Alaska Energy Authority. Motion by E. Paul Diener, second by Tom Stahr. Under discussion, Tom Stahr commented that any dispute between Chugach Electric and the AFA that required arbitration or resolution in the Courts would first be presented to the BPMC. Tom Stahr's comment is included in the motion. The motion passed unanimously. 91Q3/3D1475(4) Bradley Lake Project mmittee Meeting Minutes August 23, 1991 Page 5 10. 11. REVIEW OF PROJECT STATUS Dave Eberle reported that all testing is now completed and the plant is in the utility's control for firm power. Commercial operation is set for September 1 and the dedication will be on September 6. The water levels are doing well. Current level is 1,162 feet with 18 feet before spill. Estimated water levels are above the historical average. Dispatchers have been told that 63 GWH's must be used between now and December 1 or spill will occur. The utilities are scheduling accordingly. Dave Eberle reported that the SVS bids were opened (low bid ASEA Brown Boveri $14.2 million) and that all bidders were considerably higher than the engineer's estimate of $9.2 million or the budget amount of $9.3 million. The notice of intent to award was issued to determine if there would be a protest (none were received). Options for revising the scope of work have been discussed, but no substantial changes have been identified. Chairman Kelly asked Dave Eberle if the contingency funds would be adequate to cover the cost overruns. Dave replied that after allowing for the $5 million for SVS, $2-2.5 million would remain. Two possible needs for these remaining funds would be site rehabilitation costs not quantified yet and any additional SVS costs. SVS is expected to be on line for commercial operation in January 1993. OLD BUSINESS Dave Burlingame requested that the previous tabled motions requesting funds for transfer tripping be considered. Installation of transfer tripping will prevent the need to take the tieline out of service when output of Bradley Lake reaches 65 MW. Chugach does not want to take the line out of service. Motion - Approval of costs to install transfer tripping not to exceed $35,000 for Chugach Electric and $62,000 for Homer Electric. Motion by Dave Highers, second by Tom Stahr. Both Homer and Chugach assured that all costs are strictly related to Bradley Lake. The motion passed unanimously. 91Q3/JD1475(5) Bradley Lake Project mmittee Meeting Minutes August 23, 1991 Page 6 12. NEW BUSINESS A. 91Q3/JD1475(6) Dispatch Agreement John Cooley reported on the Scheduling and Allocation Agreement. After discussion it was determined that this agreement was approved at the July 2, 1991 meeting subject to the completion of Exhibits A and B. The dispatch services agreement between Chugach and the Alaska Energy Authority is awaiting comments from AFA. This final will be distributed to all utilities prior to the next BPMC meeting. Chairman Kelly has asked that all related documents (SWEC report discussing the parameters of operating Bradley) also be redistributed. It is expected that these agreements will also go to the Operation and Dispatch Subcommittee at the same time. Approval of Committee Expenses Chairman Kelly recommended that only reviewed expenses would be considered. Expenses received but not reviewed would be held for consideration at the next BPMC meeting. Brent Petrie received a request with back-up documentation for Ater, Wynne, Hewitt, Dodson & Skerrit cost reimbursement of $17,480.33. Motion - Approval of $17,480.33 expense. Motion by Charlie Bussell, seconded. The motion passed unanimously. Section 31 Costs Motion - Section 31 balances will be allocated to ongoing BPMC costs or to defray budget expenses. Motion by Charlie Bussell, second by Tom Stahr. Discussion on documentation for Gloria resulted in the recommendation that a certifying block be added for each expenditure approved. This motion passed unanimously. Bradley Lake Project nmittee Meeting Minutes August 23, 1991 Page 7 D. Approval of SVS Contract Award. Motion - Approval to issue SVS contract award and notice to proceed. Motion by Dave Highers, second by E. Paul Diener. This motion passed unanimously. E. Further Business Dave Eberle reported that he had received a bill from HEA for standby spinning during testing. It was decided that these and other related bills would be placed on the agenda as new business (Power generation expenses related to testing) at the next meeting. 13. COMMUNICATIONS A. Schedule Next Meeting October 25, 1991 (Friday) 10:00 a.m. Chugach Electric Association Training Room 15. ADJOURNMENT There being no further business the committee adjourned at 11:43 a.m. “Wy An Mike Kelly, Chairman Attest: Charlie Bussell, Secretary 91Q3/JD1475(7)