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HomeMy WebLinkAboutBPMC Meeting- June 15, 1995BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING MINUTES Alaska Industrial Development and Export Authority 480 West Tudor Road Anchorage, Alaska Thursday, June 15, 1995 10:00 a.m. 1. CALL TO ORDER Chairman Norm Story called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:07 a.m. to conduct the business of the Management Committee. The following members were present: 2. ROLL CALL Alaska Energy Authority Stan Sieczkowski, Designated Alternate Representative City of Seward Dave Calvert, Designated Representative Homer Electric Association Norm Story, Designated Representative Matanuska Electric Association Wayne Carmony, Designated Representative Anchorage Municipal Light & Power Hank Nikkels, Designated Alternate Representative Chugach Electric Association Eugene Bjornstad, Designated Representative Golden Valley Electric Association Brad Evans, Designated Alternate Representative Others Present: Brenda J. Fuglestad, AEA Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerritt Myles Yerkes, Homer Electric Association Mary Ann Pease, Anchorage Municipal Light & Power John Cooley, Chugach Electric Association Bob Hufman, AEG&T Jim Hall, Matanuska Electric Association Brian Hickey, Chugach Electric Association June Finkbiner, Municipal Light & Power Joe Griffith, Chugach Electric Association Bradley Lake Pi ct Management Committee Meeting Minutes -- Thursday, June 15, 1995 Page 2 of 7 3. PUBLIC COMMENT There was no public comment. 4. AGENDA COMMENTS There were no changes or additions to the agenda. 5. APPROVAL OF MEETING MINUTES: April 13, 1995 The Committee stated that there were two errors in the April 13, 1995, meeting minutes. Page 4, Item 9A, third sentence: the word "policy" was inadvertently left out after “spinning reserve..." Page 7, Item 11, second paragraph reads "...interaction with the governor...", should read "...interaction of the governor..." Chairman Story stated the minutes would reflect these changes. MOTION: Mr. Bjornstad moved to approve the April 13, 1995, minutes as amended. Seconded by Mr. Calvert. A voice vote was taken, and the motion passed unanimously. 6. BUDGET SUBCOMMITTEE REPORT Chairman Story informed the Committee that a memorandum was_ sent appointing Mary Ann Pease as Chairperson of the Budget Subcommittee. Ms. Pease briefed the Committee stating that the year-end audit report dated June 30, 1995, has been finalized by Parisena, Stromburg & Co.. The report was forwarded to the Budget Subcommittee members. There are two issues that were identified in the management letter that need to be addressed by the Project Management Committee. The first issue is the workmen's compensation receivable: due to the lack of information from the Alaska Industrial Development and Export Authority ("AIDEA") and the inability to provide the financial justification the auditors felt that Bradley Lake has a potential receivable of apx. $35,000.00. AIDEA is continuing to research the issue, but it is the Budget Subcommittee's recommendation that Bradley Lake be credited for the workmen's compensation receivable until AIDEA can prove otherwise. The second issue is the allocated charges: the auditors question the allocation of insurance and dedicated circuit service fees that AIDEA passes on to the utilities. This issue is not major, but the Budget Subcommittee will keep this in mind and review the circuit maintenance methodology and present the findings to the PMC. Bradley Lake Pi ct Management Committee Meeting Minutes -- Thursday, June 15, 1995 Page 3 of 7 Ms. Pease also stated that the audit report summarizes the operating surplus and reserve currently carried on the project. For FY94 the ending surplus was $1,226,000. According to Elaine McCambridge of AIDEA the projected for FY95 is $1,524,000. The FY96 budget allocates $1,169,000 to reduce the surplus to only $355,000 for FY96. The Bradley Lake Budget Subcommittee recommends that the managers accept the Parisena, Stromburg & Co. report for FY94. It is also the Bradley Lake Budget Subcommittee's recommendation that Parisena, Stromburg & Co. be used for the FY95 report which should be underway in August 1995. As addressed at the April 13 meeting by Tom Lovas, the Budget Subcommittee is requesting an audit of the following items: 1. Review and verification of power dispatch charges from Chugach. 2. Review and verification of charges from Homer as currently contained at AIDEA. 35 The final accounting treatment and insurance adjustments for the airplane accident at Bradley lake. The Subcommittee has reviewed the scope of work for the audit and is requesting PMC approval for the audit to be accomplished by Pete Raskins. On May 16 there was a meeting of several of the utilities to address the accounting and potential APUC treatment of Bradley Lake payments. The participants currently pay a flat amount based on the budget, the cost is then recovered through COPA. Several of the utilities were at this discussion and at the current time no one seemed interested in pursuing a change in the methodology of energy values. It is the Subcommittee’'s recommendation that this issue be addressed by the financial and regulatory members of the participating utilities if future action is necessary. 4. OPERATION AND DISPATCH SUBCOMMITTEE REPORT Mr. Sieczkowski stated that the O&D Subcommittee met on April 14. The Subcommittee anticipates having the technical standards completely reviewed by the next meeting. The Subcommittee also reviewed and approved the extension of the fishwater studies per the instructions of the PMC. These studies are for a three year extension which will be reviewed on a year by year basis. The purpose is to ultimately come up with reliable waterflow monitoring as well as a reduction in the required fishwater releases. The Bradley construction funds are currently under review. An itemized task list and a report of the funds should be developed for the next PMC meeting. Bradley Lake Pi ct Management Committee Meeting Minutes -- Thursday, June 15, 1995 Page 4 of 7 Mr. Hickey stated that operations have been normal short of the error and allocation that was discovered in April. Mr. Evans stated that there was a five year study done that was due to FERC which was phase one of the fish study. He asked whether this report has been submitted and if a copy is available. Mr. Sieczkowski stated that the initial study period was five years and is due to be terminated December 31, 1995. This is the last required year of studies after which a final report will be submitted to FERC. He stated that he earlier discussed a three year extension to the initial study period of five years. Mr. Evans stated that there was a difference in what Mr. Sieczkowski was saying and what has been done for the first five years. He stated that it is not an extension of the first five years, but basically a new study because the first report satisfied the FERC requirement. Mr. Sieczkowski stated that the cost of the studies extension is $39,000 for Northern Environmental Services and $38,000 for USGS per year for the three- year extension. These studies will be evaluated on a year by year basis. Mr. Evans asked about the magnitude of the energy allocation adjustment. Mr. Hickey stated that Chugach determines it would be from 36,000 megawatt hours to 50,000 megawatt hours for the project. Mr. Evans stated that this is three times the normal level that is reallocated under the agreement. Mr. Hickey stated that this is a significant reallocation which altered the operating procedures. Mr. Yerkes stated that revenue meter testing was completed at the end of May on the unit JEM revenue meters. The first barge load of equipment and spare parts have arrived and are currently being catalogued and checked. A significant number of minor capital projects need civil and_ structural engineering services. He stated that an RFP was let to obtain these services and they are currently being evaluated. It is anticipated that small term engineering services will be on contract within the next 30 days. Mr. Yerkes stated that Don Stead is the new project manager for Homer Electric Association and should be arriving on June 19, 1995. Mr. Stead will be assuming the project duties. He also stated that Stan Sieczkowski along with the Federal Energy Regulatory Commission will be arriving the week of June 19 for a project inspection. Bradley Lake P ct Management Committee Meeting Minutes -- Thursday, June 15, 1995 Page 5 of 7 Mr. Yerkes stated that they also have an RFP out for consulting services to help with the redesign and improvement of the existing fishwater control system at the project. Mr. Evans asked if the JEM meter was a required inspection. Mr. Yerkes replied that it was a simple annual review. They were put on the test bench for meter testing and they found no discrepancies. It was a coordination between Homer Electric Association and Chugach Electric Association. Mr. Evans asked if this inspection is required annually. Mr. Yerkes stated that it is required annually. He stated that Chugach is basically responsible for the inspection because they use the meters for revenue metering for the project. 8. OLD BUSINESS A. Spinning Reserve Update Mr. Cooley stated that the Reliability Criteria Committee sent out a draft report to all the committee members to review. After the committee reviews the report it will be sent to the IOC and the General Managers for their action. B. Status Update _of Agreements Mr. Saxton stated that the agreements are slowly making progress. The Power Sales Agreement, the Chugach Services Agreement and the Homer Transmission Agreement were signed, but a number of other agreements were left unsigned so they could be worked out at a later date. Some of the unsigned agreements include the Chugach Dispatch Agreement and various Substation and Interconnection Agreements. In all instances the PMC has the right to approve these agreements. Mr. Saxton stated that direction from the PMC is needed to make these agreement negotiations a high priority. Chairman Story stated that this item should be a high priority. Hearing no objections there was a consensus to make this item a priority issue. Mr. Saxton stated that he would coordinate with the various parties to set up a meeting time. Bradley Lake Pi ct Management Committee Meeting Minutes -- Thursday, June 15, 1995 Page 6 of 7 9. NEW BUSINESS A. Approval of Legal Expenses & Other Expenses MOTION: Mr. Bjornstad moved to approve the Audit Report for 1994 prepared by Parisena, Stromburg & Co. Seconded by Mr. Calvert. A voice vote was taken, and the motion § passed unanimously. MOTION: Mr. Bjornstad moved to have an audit accomplished by Pete Raskins for the review and verification of the power dispatch charges from Chugach Electric Association; review and verification of charges from Homer Electric Association; and final accounting treatment and insurance adjustments for the airplane accident at Bradley Lake. Seconded by Mr. Evans. A voice vote was taken, and the motion passed unanimously. Mr. Bjornstad stated that three invoices have been received from Ater, Wynne, Hewitt, Dodson & Skerritt. April 1995 services in the amount of $2,639.71. March 1995 services in the amount of $4,316.67. October 1994 services in the amount of $3,724.05. The total amount to be approved is $10,680.43. MOTION: Mr. Bjornstad moved to approve payment of the above-mentioned legal expenses in the amount of $10,680.43. Seconded by Mr. Evans. A voice vote was taken, and the motion passed unanimously. 10. COMMITTEE COMMENTS Mr. Yerkes stated that Stone and Webster Engineering Corporation was retained to review the governor instability problems at Bradley Lake. A product should be available within the next 30 days for the O&D Committee. Chairman Story stated that the next meeting date would be scheduled for July 17, 1995, 10:00 a.m. at the Municipal Light & Power offices. 12. © ADJOURNMENT There being no further business of the Committee and hearing no objections, Chairman Story adjourned the meeting at 10:38 a.m. Bradley Lake P ct Management Committee Meeting Minutes -- Thursday, June 15, 1995 Page 7 of 7 ZA, ny: Gl222. Norm Story, Chairman ATTEST: CeMa Dennis V. McCrohan, Secretary zs ALASKA INDUSTRIAL DEVELOPMENT =_ AND EXPORT AUTHORITY f= ALASKA @@m_ = ENERGY AUTHORITY 480 WEST TUDOR ANCHORAGE, ALASKA 99503 907 / 561-8050 FAX 907 /561-8998 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING AGENDA Thursday, June 15, 1995 - 10:00 a.m. Anchorage Municipal Light & Power Commission Room - 1200 East Ist Avenue Fi CALL TO ORDER Story Ds ROLL CALL 3. PUBLIC COMMENT 4. AGENDA COMMENTS 5. APPROVAL OF MEETING MINUTES - April 13, 1995 6. BUDGET SUBCOMMITTEE REPORT Lovas a OPERATION AND DISPATCH SUBCOMMITTEE REPORT Sieczkowski 8. OLD BUSINESS A. Spinning Reserves Update Lovas B. Agreements Update Seiczkowski 9; NEW BUSINESS A. Approval of Legal Expenses & other Expenses Bjornstad 10. COMMITTEE COMMENTS A. Next Meeting Date Story Lie ADJOURNMENT h:all\eva\bradley\agenda ALASKA ENERGY AUTHORITY/ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY Public Notice Bradley Lake Project Management Committee Notice is hereby given that the Bradley Lake Project Management Committee will hold a regular meeting to conduct the affairs of the Committee at the Anchorage Municipal Light & Power offices, 1200 East 1st Avenue, Anchorage, Alaska. This meeting will commence at 10:00 A.M., on Thursday, June 15, 1995. For additional information, contact Norman L. Story, Chairman, Homer Electric Association, 3977 Lake Street, Homer, Alaska 99603. The State of Alaska (AIDEA), complies with Title II of the Americans with Disabilities Act of 1990. Disabled persons requiring special modifications to participate should contact AIDEA staff at (907) 561- 8050 to make special arrangements. /s/ Alaska Energy Authority Project Management Committee Publish: Friday, June 9, 1995 h:all\eva\bradley\bladvtzg