HomeMy WebLinkAboutBPMC Meeting - Re-Scheduled New Date; August 6, 1996BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE
MEETING MINUTES
Commission Room
Anchorage Municipal Light & Power
1200 East 1st Avenue
Anchorage, Alaska
Tuesday, August 6, 1996
1:30 p.m.
As CALL TO ORDER
Chairman Tom Stahr called the meeting of the Bradley Lake Hydroelectric Project Management
Committee to order at 1:30 p.m. in the Commission Room of Anchorage Municipal Light & Power,
1200 East 1st Avenue, Anchorage, Alaska, to conduct the business of the Committee per the
agenda and public notice.
2. ROLL CALL
Roll was called by Shauna Dean. The following members were present, and a quorum was
established:
Tom Stahr, Chairman
Anchorage Municipal Light & Power
Dave Calvert
City of Seward
Eugene Bjornstad, Vice Chairman
Chugach Electric Association
Wayne Carmony, Treasurer
Matanuska Electric Association
Don Stead
Homer Electric Association
Bradley Evans
Golden Valley Electric Association
Dennis McCrohan
Alaska Energy Authority
Others Present:
Tim McConnell, Municipal Light & Power
Moe Aslam, Municipal Light & Power
Dan Beardsley, Alaska Energy Authority
Stan Sieczkowski, Alaska Energy Authority
Shauna Dean, Alaska Energy Authority
Tom Lovas, Chugach Electric Association
John S. Cooley, Chugach Electric Association
Dora Gropp, Chugach Electric Association
Norm Story, Homer Electric Association
Mike Kelly, Golden Valley Electric Association
Jim Hall, Matanuska Electric Association
Bob Hufman, AEG&T
Virgil Gillespie, Fairbanks Municipal Utility System
Ron Saxton, Ater, Wynne, Hewitt, Dodson & Skerritt
Bradley Lake Project Management Committee Meeting Minutes
Tuesday, August 6, 1996 Page 2 of 6
3: PUBLIC COMMENT
None.
4. AGENDA COMMENTS
There were no additions or corrections to the agenda, and they were adopted by unanimous
consent.
53 APPROVAL OF MEETING MINUTES - APRIL 2, 1996
Mr. Stahr asked that an "e" be added to "therefor in the first sentence on page 4 of 5.
Mr. Bjornstad asked that the report he had read into the record in Mr. Lovas' absence under
Agenda Item No. 9., Old Business, Item A., Spinning Reserves Update, be appended to and
incorporated by reference into the April 2, 1996 minutes.
There being no further additions or corrections, a roll call vote was taken, and the minutes were
approved by unanimous consent as amended.
6. BUDGET SUBCOMMITTEE REPORT
In Ms. Pease's absence, Mr. Saxton distributed a written Budget Subcommittee report from the
June 12th, 1996 meeting. He asked if there were any questions.
Mr. Bjornstad asked if the Subcommittee had discussed the Chugach proposal on the budget
adjustment. Mr. Saxton said he would pass this question along to Ms. Pease for a response.
Mr. McCrohan asked if Mr. Peter Askums had presented a report yet. Mr. Saxton responded Mr.
Askums had completed some preliminary work but had not yet presented a report. He said they
planned to discuss the preliminary work during the RUG meeting today.
le OPERATION AND DISPATCH SUBCOMMITTEE REPORT
Mr. Sieczkowski reported the O&D Subcommittee had met the previous day, Monday, August 5,
1996, at the Bradley Lake Power Plant.
Mr. Sieczkowski reported that the Martin River airstrip was now accessible for alternative landings.
HEA staff had completed the road and low water crossings. Mr. Sieczkowski said the Martin River
was continuing to change course and may be a problem in the future as the flow may cut off the
end of the airstrip. He said HEA would continue to monitor the situation.
Mr. Sieczkowski reported that the utilities were planning to clean out the fish water bypass intake at
the dam, and plans were underway to pull the lake down for the work, which was scheduled to be
completed in June 1997. He said CEA would coordinate documentation of the design parameters
of the governor and control systems and verify the data, studies, and field tests. He said this task
would be part of the system analysis construction funded project, which had been reviewed and
approved by the O&D Subcommittee as part of the previously approved construction plans.
Mr. Sieczkowski reported that the RFP for the governor response study requested by ML&P was
out for bid, and responses were to be submitted this week. Evaluations and recommendations
regarding the bids would be submitted to the O&D Subcommittee prior to award.
Bradley Lake Project Management Committee Meeting Minutes
Tuesday, August 6, 1996 Page 3 of 6
Mr. Sieczkowski said the O&D Subcommittee was still reviewing the renewal and replacement
equipment scheduling and funding as requested by the Chair. He said this was a discussion item
on the Subcommittee's next meeting agenda.
Mr. Sieczkowski said the next meeting of the O&D Subcommittee was scheduled for Wednesday,
October 2, 1996, at 10:00 a.m. at the AIDEA office in Anchorage. Mr. Sieczkowski asked Mr. Stead
to present the operations and maintenance portion of the report.
Mr. Stead said that since the last reporting period, they had completed a dual-unit outage for annual
maintenance. During that outage, a problem had been encountered with loose pole stoppers. Fuji
had gone to the site and inspected both units, prepared a report, and provided a repair plan. The
problems with Unit 2 were not as serious as Unit 1. Unit 2 was placed back in service so the outage
could be terminated, and the Unit 1 pole stoppers were repaired. All the pole stoppers would be
tightened and repaired during the next annual maintenance outage.
Mr. Stead reported that there had been a forced dual-unit outage on July 1 when a Zenor diode at
the upper gate house shorted and failed, causing a solenoid valve to open, bleeding the oil supply
off the hydraulic ram and causing the control gate on the power tunnel to close. When the gate
was at 80% open, both units tripped, and the operator was dispatched to the upper gate works.
When the operator saw that the gate was continuing to close, he opened the bypass around the
gate and commenced troubleshooting. Both units had been restored approximately 10 hours later.
Mr. Stead reported that during the Kenai blackout on July 18th, the units operated as designed, with
the ring bus opening at 55 cycles. During the July 24th outage, Unit No. 1 tripped on an 86-GB
relay, and the cause has not yet been determined. There were no other flags dropped at that time,
and one unit continued to run.
A. Balance of Construction Funds
Mr. McCrohan distributed a report on bond counsel's opinion regarding disposition of the residual
balances in the Bradley Lake Construction Fund. He said the audit was not yet available, and they
were not requesting action at this time. He summarized the report for the Committee. He said two
questions had been asked:
(1) What would be the significance of adding to the work list? Mr. McCrohan noted that
approximately $1,000,000 in additional items had already been added. Bond counsel had advised
that as long as these were legitimate construction costs, the additional items and increased costs
were acceptable. It was up to the Committee to determine the legitimacy of the additional
construction costs.
(2) Disposition of residual amounts. The bond resolution in §503 clearly stated the remaining
money in the construction fund would be returned to the State of Alaska. However, item (3) allowed
interest to accrue prior to and during construction and for such additional period of time as the
Authority determined to be reasonably necessary for placing the project or any facility thereof into
operation in accordance with the provisions. In addition, the Authority could make the
determination that it was necessary to use a portion of the remaining amount in the construction
fund to pay interest on the bonds for a reasonable period of time.
Mr. McCrohan said there was no differentiation in the proportions of utility and State contributions in
the bond resolution. He said once the O&D Subcommittee received the construction audit, they
would present to the Committee their recommendations regarding the disposition of the remaining
funds.
Bradley Lake Project Management Committee Meeting Minutes
Tuesday, August 6, 1996 Page 4 of 6
Mr. Saxton requested, and was granted, the opportunity to review bond counsel's opinion and
discuss it with the utilities.
B. HEA Construction Agreement
Mr. Beardsley said a construction agreement had been submitted to and reviewed by HEA. HEA
had provided comments based on their review, and a few points were still under discussion
regarding budgeting. He felt those would be resolved within the next couple of weeks. No action
was required by the Committee.
8. OLD BUSINESS
A. Spinning Reserves Update
Mr. Lovas reported that since the March meeting of the ASCC, the Reliability Criteria Committee
had met a couple of times and had developed three areas of agreement with respect to proceeding
with the proposal for spinning reserves to protect against largest unit losses. He said that was still
70% response of spin requirement as on-line reserve protection against load-shedding resulting
from loss of the largest generating unit.
There was a consensus of the RCC that verification requirements through dynamic system
monitors or equivalent means should be investigated for each unit considered for carrying
responsive reserve. An evaluation of the economic impact of modifying the reserve requirement
from today's contractual arrangement to the 70% proposal would be needed in order to support
implementation, along with evaluation of dynamic monitor installation costs.
Mr. Lovas reported that specifications were being developed for monitoring equipment and
locations, and work had commenced to investigate commonality of communications protocols and
installation methods. He said work had also commenced to develop assumptions and criteria for
the economic evaluation of the impact of changing the reserve computation.
B. Agreements Status
Mr. Saxton reported that he and Mr. Beardsley had sent out over the past several months a variety
of agreements and related correspondence, and four agreements were ready for Committee
approval at this time:
(1) The Bradley Lake Dispatch Agreement between AEA and CEA was an existing document
which required Committee approval of modifications that would bring it into compliance with
the Master Operating Agreement.
(2) The Bradley Lake Transmission Facilities Agreement separated out the maintenance of the
Bradley Lake transmission facilities from the maintenance of the facility itself, work that HEA
was currently performing and would continue to perform under the agreement.
(3) The Bradley Lake Static VAR Compensation O&M Agreement, consisting of work to be performed by CEA.
(4) An amendment to the Bradley Lake O&M Agreement, which outlined the segregation of the transmission maintenance from the O&M.
He said meetings had been held to address the concems of the various parties, and it was his and Mr. Beardsley's understanding that all concerns had been resolved.
Bradley Lake Project Management Committee Meeting Minutes
Tuesday, August 6, 1996 Page 5 of 6
MOTION: Mr. Bjornstad moved to approve the above-mentioned four agreements. Seconded
by Mr. Story.
Mr. Bjornstad noted that "of" should be inserted after the word "approval" in Section 9 on page 7 of
the SVS O&M Agreement.
There being no further corrections or discussion, a roll call vote was taken, and the motion
passed unanimously.
Mr. Saxton said the agreements now needed to be executed by AEA, HEA, and CEA, respectively,
and finalized copies would be distributed to the Committee members.
Mr. McConnell commended Mr. Beardsley for his work on this project.
9. NEW BUSINESS
A. Approval of Legal Expenses and Other Expenses
Mr. Carmony stated that the Committee had delegated review of the legal expenses to the Chair,
and this item should be deleted from the agenda in future.
B. Budget Adjustment - 2 CEA Line Items (-$105K)
Mr. Bjornstad reported that a motion had been made and seconded during the Budget
Subcommittee meeting to reduce the FY '97 budget by $105,000 from the amount previously
budgeted for the Chugach dispatch and software maintenance. Though the minutes did not reflect
the motion had passed, Mr. Bjornstad said he assumed it had. It was confirmed that the motion
had passed.
MOTION: Mr. Bjornstad moved that the Committee approve the FY '97 budget reduction of
$105,000. Seconded by Mr. Kelly.
In response to Mr. McConnell's question, Mr. Bjornstad said this line item would be considered on a
year-by-year basis.
There being no further discussion, a roll call vote was taken, and the motion passed
unanimously.
10. COMMITTEE MEMBER COMMENTS
There were no Committee member comments.
11. NEXT MEETING DATE
The next regular meeting of the Bradley Lake Hydroelectric Project Management Committee was
scheduled for Thursday, October 17, 1996, at 10:00 a.m., in the Commission Room of ML&P.
Bradley Lake Project Management Committee Meeting Minutes Tuesday, August 6, 1996 Page 6 of 6
12. | ADJOURNMENT
MOTION: Mr. Bjornstad moved to adjourn. Seconded by Mr. Kelly.
There being no objection and no further business of the Committee, the meeting was adjourned at
2:00 p.m.
BY: hook
Thomas R. Stair, Chairman
ATTEST: TOM ¢ Ceo i
Alaska Energy Authority, Secretary
SD:Executary/csc
1486bpmc.min 08/26/96