HomeMy WebLinkAboutBPMC Meeting - February 13, 1996 3OVERVIEW OF
BRADLEY LAKE PROJECT AGREEMENTS
Power Sales Agreement Executed 12/8/87
Purpose: To provide the legal framework for selling the power generated at the Bradley Lake
Hydroelectric Project. Since there are several entities buying a fixed percentage share of the
power and each has a "take-or-pay" obligation, the PSA created a Project Management
Committee to oversee the scheduling of Project power, operation and maintenance of the
facilities, budgeting and other Project-related tasks. The AEA retains ownership and has certain
rights and responsibilities. Revenue from the sale of power is pledge to repay the debt service
on the bonds issued by AEA and to pay the operating costs of the Project.
Purchasers: Chugach, Golden Valley, AML&P, City of Seward, and AEG&T. AEG&T will
purchase power for use by Homer and Matanuska.
Term: Effective when executed and all approvals are in place (June 29, 1989). The PSA
terminates 50 years after the Date of Commercial Operation, or when no bonds are outstanding
and all payment obligations have been satisfied. The PSA may be renewed for additional 40
year terms for the useful life of the Project.
Capacity Shares: The Purchasers divided the project capacity into the following percentage
shares:
Purchaser Percentage Share
AEG&T (MEA 13.8%, HEA 12%) 25.8
Chugach 30.4
Golden Valley 16.9
AML&P 25.9
City of Seward 1.0
BPMC: The PSA created a Project Management Committee to oversee the coordinated operation
of the Project. The BPMC is comprised of the AEA, and a representative of each of the
Purchasers, including MEA and HEA as representatives of AEG&T.
The Project Management Committee is responsible for the ongoing operation, maintenance,
scheduling, production and dispatch of Project power. In doing so it must recognize the legal
responsibilities of the AEA as owner and FERC license holder of the Project. A critical
responsibility each year is adopting a budget covering "necessary and prudent" project costs for
the ensuing year. In additi PMC determines how to fund renewals and replacements for
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equipment that deteriorates from ordinary or extraordinary wear and tear. Other duties include
determining whether to proceed with non-essential additions and how to pay for them, setting
up dispute resolution processes, determining insurance coverage consistent with Bond Resolution
requirements, adopting maintenance schedules, adopting and implementing reserve procedures
for Project power reserves. If the PMC fails to act in a manner consistent with the Bond
Resolution regarding the adoption of a budget or related payment obligations of the purchasers
or meeting AEA’s legal obligations 90 days prior to a Fiscal Year, AEA can adopt a budget
effective for setting purchasers payment obligations.
Annual Costs: Each year, the BPMC adopts a budget setting out the annual costs for ownership,
operation, maintenance, and any renewals and replacements to the Project, and payment into the
funds established by the bond resolution.
Annual Project Costs are the costs resulting from the ownership, operation, maintenance of and
renewals and replacements to the Project, properly incurred or paid during each Fiscal Year.
Annual Costs include:
v Amounts required for debt service on any outstanding bonds;
rv, Amounts required for reserve funds created by bond resolution;
v Any required project work;
v Costs of producing and delivering power including:
* O&M;
e Insurance;
e AEA’s Project specific administrative and general costs;
. Costs of BPMC;
e Any individual utility cost to be reimbursed by the BPMC; and
e Any other cost approved by the BPMC.
Budget Process: The BPMC approves the annual budget by April 1, for the following fiscal
year (which begins July 1). If the BPMC fails to adopt a budget, the AEA can adopt a budget
consistent with the PSA and Bond Resolution. The Purchasers must pay until disputes are
resolved.
The annual budget is based on a 12-month fiscal year starting July 1. Budgeting is a cooperative
practice. The AEA provides annual budget detail listing personnel requirements by work
function, and estimated costs for materials, supplies, engineering and other costs. The AEA
provides sufficient detail to allow the BPMC to make reasonable budget decisions.
An annual audit is performed by qualified independent auditors selected by the BPMC, to be
completed on or before the first day of December of each year. The primary purpose of the
audit is to verify expenses.
Take-or-Pay Obligation: Each Purchaser is responsible for its percentage share of annual Project
costs for each fiscal year. Payments must be made even if the amount of Project power is
interrupted or reduced.
Parity Provision: Before a purchaser can enter into any new power purchase agreement with
a term over 2 years or acquire a new resource it must have an opinion from an independent
consultant that the acquisition will contribute to the efficient and economical operation of its
system and that the acquisition will not impair its ability to raise revenues to pay Bradley Lake
costs.
Rate Recovery: The amounts owed by each Purchaser are operating expenses payable from
"gross revenues". Each purchaser agrees to establish rates for its system that will provide
sufficient revenues to cover its obligations for Bradley Lake power and its other system
obligations. The purchaser agrees to operate and maintain its system in good repair, working
order and condition.
Purchasers Covenants: Each purchaser is obligated (1) to adopt rates and obtain any necessary
approvals by the APUC to cover its obligations under the agreement, (2) use and operate its
system in compliance with all laws, regulations and permits, (3) not abandon, sell, mortgage,
lease or otherwise dispose of its system or assign its interest in the Agreement to any other entity
unless (i) it meets the requirements of its own mortgages or bond resolutions, and (ii) the
disposal agreed to by a majority of the PMC or is made to another member of the PMC or is
limited to surplus assets that are less than 5% of its system or is evaluated by an independent
consultant to provide equal or greater security than the purchaser. The purchasers cannot take
any action that would cause the interest on Project Bonds to be taxable under the 1986 IRS code.
Finally all parties are obligated to take "all necessary steps" to meet all legal requirements
related to operation of the Project.
Project Work/Additions: The AEA is responsible for all Required Project Work necessary to
repair, maintain or make improvements required by federal or state law, as part of the FERC
license, or as required by other regulatory agencies. Required Project Work includes work
necessary to keep the Project in good and efficient operating condition consistent with sound
economics and industry standards. The costs of Required Project Work will be included in the
determination of annual Project costs.
The BPMC can decide to pursue Optional Project Work by an affirmative vote of a majority of
the Purchasers and the AEA. Optional Project Work shall be at the expense of the benefitted
Purchaser(s) and shall include compensation to any adversely affected Purchaser(s).
Bond Resolution Issued in 1989, 1990
Purpose: The Bond Resolutions provide the AEA with the authorization to sell Bonds necessary
to fund the Bradley Lake Project. By the terms of the PSA, the Purchasers are bound to the
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conditions of the two Resolutions.
First Series: The First Series was issued September 1, 1989 for $105,001,142. The bonds were
issued for the purpose of permanently financing some of the Bradley Lake construction costs by
refunding a portion of the AEA’s Variable Rate Demand Bonds, which were issued in 1985. The
bonds are secured under the AEA’s Power Revenue Bond Resolution by a pledge of the revenues
received by the AEA from the operation of the Project.
Second Series: The Second Series was issued July 15, 1990 for $60,259,015.10. These bonds
were used, together with moneys available under the 1985 Indenture securing the Variable Rate
Demand Bonds, to capitalize a portion of the interest on the Second Series Bonds, to make
deposits to the Capital Reserve Fund, the Renewal and Contingency Reserve Fund, the Operating
Reserve Account, and to pay certain costs of issuance of the Second Series Bonds.
Funds Created: The Resolutions require that several funds be established including:
v Construction Fund. To be applied to the cost of acquisition and construction of
the Project.
Vv; Debt Service Fund. To be used to pay out debt service and pay down the
principal on the bonds. The AEA deposits amounts semiannually.
v Capital Reserve Fund. If there is a deficiency in any payment of principal or
interest, the Capital Reserve Fund will make good the deficiency.
v Renewal and Contingency Reserve Fund. These amounts shall be applied to
the costs of Capital Improvements, payment of extraordinary operation and
maintenance costs, and contingencies, including prevention or correction of
unusual loss or damage. Payments will be made only to the extent that insurance
or other moneys are not available.
v Excess Investment Earnings Fund. To preserve the tax status of the bonds, any
excess funds will be transferred into this Fund.
v Scheduled Maintenance Fund. Created by the second series bond sales as a
option for funding maintenance, renewal, repair and rehabilitation of the Project.
Payments are made upon authorization of the BPMC.
Services Agreement Executed 12/8/87
Purpose: At the time the PSA was executed, the only way to deliver Project power to where
it could be used by the Purchasers was to use Chugach’s transmission line that interconnects the
Kenai Peninsula with the Anchorage area. Under the Agreement, Chugach agrees to transmit
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Project power on its facilities to the extent capacity is available in excess of Chugach’s own
needs. Chugach also agrees to provide storage and dispatching services. This was a temporary
solution, and the Services Agreement terminates when a new intertie is built.
As part of the entire contract "package," the parties executed a Services Agreement whereby
Chugach, as the dispatcher of the Project, has the obligation to provide wheeling, storage, and
energy purchase services to the other Purchasers, at their request.
Wheeling Services. Chugach provides wheeling services for the Purchasers that request the
service. The Purchaser notifies Chugach if wheeling services are needed for the following day.
The Purchaser pays Chugach a wheeling rate as computed by formula in an appendix to the
Services Agreement.
Storage Services. At the request of a Purchaser, Chugach provides storage services at no
charge. Chugach can store energy delivered to the Soldotna Substation, in the Cooper Lake
Reservoir. Storage is only available to the extent that power cannot be wheeled.
Chugach Purchases: Chugach will also purchase power delivered to the Soldotna Substation if
Chugach can use the power to substitute for displaceable energy. Chugach is not obligated to
purchase the power if it can be wheeled or stored. The rate will be the disposal rate for Bradley
Lake power, as calculated by using the formula in an appendix to the Agreement.
Use of System: Chugach will use its best efforts to avoid an conflicts between Chugach’s own
use of its system and the requests from the Purchasers. Chugach’s first priority is to maintain
the safety, efficiency and reliability of its own system.
Transmission Capability Agreement Amended 3/7/89
Purpose: This Agreement fulfilled two purposes: (1) securing financing for the Bradley
Junction-Soldotna line, and (2) providing each Purchaser with the right to transmit its share of
Project capacity over HEA’s system. HEA’s transmission system was not adequate to transmit
all of the Bradley Lake capacity. As a result, the Purchasers agreed that a new line connecting
Bradley Lake to Soldotna was necessary to ensure that each Purchaser would be able to use its
share of Project capacity. HEA operates the Soldotna and Fritz Creek segments as part of
HEA’s own system.
Cost of Constructing: The Agreement obligated HEA to construct the new line and each
Purchaser to pay a share of the Project’s capital cost, either in advance or in installments, tied
to HEA’s notes financing the line. In return for paying line capital and operating costs, each
party has transmission rights on HEA’s system adequate to transmit its share of Project
capability.
Annual Operations: HEA is required to submit an annual schedule and a proposed budget for
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ongoing operation, maintenance, and repair. Each Purchaser reimburses HEA for a portion of
HEA’s actual expenses associated with the Soldotna Segment in accordance with a formula in
an appendix to the Agreement.
Purchasers’ Share: Each Purchaser agreed to purchase a share of the capability of the Soldotna
Segment in an amount equal to that Purchaser’s percentage share.
Statutory Exemption Adopted 1988
Alaska statutes were amended to exempt the Bradley Lake agreements from review or approval
by the Alaska Public Utilities Commission. As noted in AS 42.05.431(c)(1), agreements entered
into between October 31, 1987 and before January 1, 1988 and their amendments are not subject
to review until all long-term debt is retired.
Allocation and Scheduling Procedures Revised 3/3/93
Purpose: The Allocation and Scheduling Procedures govern the allocation and scheduling of
energy available to the Purchasers from the Project by determining how much water will be
available during a particular "Water Year."
Allocation: The initial allocation is determined prior to the beginning of each Project Water year
based on known operating limitations, forecasted estimates of runoff available from snowcap and
precipitation, estimated maintenance, and the Purchaser’s forecasted monthly use of Project
energy. If the results of the Reservoir Operation Model shows a greater demand for the
available energy, the Purchasers will work together in revising the monthly energy requirements.
Accounting: Each month, the AEA subtracts the Purchaser’s use from the net allocation for the
water year, and provides an accounting of energy available for the remainder of the year.
Other Procedures: There are provisions for making modifications, scheduling the use of another
Purchaser’s unused allocation, and scheduling during a pending spill, losses, and spinning
reserves. In general, the policy allows for flexibility while maintaining each Purchaser’s
individual interests.
Master Maintenance and Operating Agreement Executed 5/24/94
Purpose: Although AEA owns the Project, the BPMC is charged with determining annual
budgets and other operational issues. The MMOA was executed to establish a streamlined,
agreed-upon contract administration and budgeting procedure.
Applicability: These provisions extend to contracts for the maintenance and operation of the
Project, the Project Related Facilities, and the related services, facilities and equipment, and for
the lease and/or use of other facilities and equipment. This Agreement was drafted in a manner
consistent with the requirements of the PSA, and in no way modifies the terms of the PSA.
Provisions: Master Contract Provisions include sections relating to procedures involving
independent contractor, annual planning and budget, subcontracting, invoices, payment and
dispute resolution, account records and audits, insurance, indemnity, amendments, conduct in
accord with applicable law, prudent utility practices, contract hours and safety standards, equal
employment opportunity, exclusivity of contract, notice and communication, section headings,
severability, successors and assigns, waivers, and third party beneficiaries.
Approvals: Prior to executing any O&M contracts, the AEA must present the contracts to the
BPMC for its review and approval.
Project Operation and Maintenance Agreement Executed 2/11/94
Purpose: The Purchasers needed to contract with an entity to physically operate and maintain
the project. The BPMC agreed that Homer Electric Association should coordinate the operation,
maintenance and repair of the Project in accordance with directives from the BPMC, the AEA,
and applicable laws, regulations and permits.
Agreement: The AEA has contracted with Homer to perform specific duties to ensure the safe,
efficient, and reliable operation of the Project. General duties relating to water and power
operations, maintenance, insurance, administering subcontracts, and coordinating activities are
outlined in the O&M Agreement, and may be refined by the annual O&M Budget, or as directed
by the BPMC or the AEA.
Budgeting: Each year, Homer prepares a draft O&M budget and presents the budget for
approval to the BPMC. Costs not anticipated in the budget may be brought to the BPMC’s
attention and will require written approval before the costs are incurred. Homer may incur
emergency expenditures in some instances.
Recommendations: Homer makes annual recommendations for repairs or installation of
equipment necessary to maintain or improve the Project, and presents a five-year schedule of
estimated equipment modifications, replacements, additions and disposals.
Transmission Facilities O&M Agreement Approved but not Executed
Purpose: The AEA owns the transmission facilities between the substation at the Bradley Lake
power house and the Bradley Junction and is contracting with HEA to perform the operations
and maintenance on the transmission facilities.
Responsibilities: | Homer will maintain the transmission facilities as required by the
manufacturer, the AEA, industry standards, and federal and state laws. Homer will coordinate
maintenance schedules and develop maintenance procedures and training programs. Homer must
have prior approval before modifying the facilities.
Budgeting: Homer will prepare a budget and submit it to the AEA. The AEA will then submit
the budget to the BPMC for their approval. The AEA will reimburse HEA for the costs of
labor, materials, supplies, equipment, training and administration incurred to perform under this
Agreement.
Contracts Under Review
Static Var Compensator Facilities Maintenance Agreements and Substation Agreements.
Currently, AEA owns transmission equipment located at the Daves Creek substation and at the
Soldotna substation, that is used to transmit Project power. The Daves Creek Substation
Agreement has been executed and similar agreement is proposed for Homer’s Soldotna
substation. In the Agreement, the AEA reimburses the utility for operation and maintenance
costs of the facilities located at the substations. The O&M costs are included in the annual
budgets.
Bradley Lake Dispatch Agreement. This Agreement was drafted to describe the process by
which the Bradley entitlement can be scheduled and accounted for. This agreement was initially
executed in 1992, but is in the process of being revised. A revised Agreement has been
negotiated and is awaiting signing by Chugach. AML&P has identified issues which can be
corrected without changing the substance of the Agreement.
BRADLEY LAKE PROJECT AGREEMENTS | Bradley Lake Project Management Committee 7
| | |
Finance | | Operations | | Transmission | _
| Bond Resolution | PSA | | Services | | Dispatch | | |
| | | |
| First Series |
| | | | Capability | | MasterMOA | | | ASP oT I | |
|
| Second Series | O&M
ANNUAL PROJECT COSTS
Costs and Obligations Come From Different Sources
Bond Resolution | Costs to Produce/Deliver Power |
Debt Service O&M
Reserve Funds Insurance
Required Project Work AEA Administrative Costs
Committee Costs
Other Costs
(Approved by the Committee)
PURCHASERS’ SHARE
OF PROJECT CAPACITY
(Percent)
oe AEGAT (25.8)
Chugach (30.4) =
——— Seward (1.0)
Golden Valley (16.9) “AML&P (25.9)
BRADLEY LAKE
PROJECT MANAGEMENT COMMITTEE
The Project Management Committee was created in the PSA to provide the Purchasers a direct
participatory role in the management of the Project. The BPMC is responsible for the
management, operation, maintenance, and improvement of the Project to the extent such
responsibilities are consistent with AEA’s ownership of the Project. The responsibilities of the
BPMC evolve in accordance with the AEA’s ownership of the Project, and the Purchaser’s
obligations to pay Project costs and purchase the Project’s power.
The BPMC consists of the AEA and the Purchasers, including HEA and MEA. AEG&T does
not have a direct vote, but is represented by HEA and MEA, each entitled to vote as a
Purchaser.
The BPMC adopted Bylaws on December 1, 1993 which outline agreed-upon procedures for
scheduling and notice for BPMC meetings, manner of acting at the meetings, delegation of tasks
to subcommittees, electing officers, budgeting, insurance, dispute resolution, and other policies.
DUTIES REQUIRED BY THE PSA
AEA
As owner of the Project, the AEA has certain non-delegable duties, including the maintenance
of physical loss insurance to the extent required by the Bond Resolution, and renewal of the
FERC license for the term of the PSA.
If the BPMC fails to take action, the AEA may act to ensure compliance with state or federal
law, the terms of the FERC license, regulatory agencies, the Bond Resolution or PSA.
PROJECT MANAGEMENT COMMITTEE
v Arrange for the operation and maintenance of the Project, and the scheduling,
production, and dispatch of Project power.
v Establish procedures for the use of each Purchaser’s water allocation.
v Adopt annual budgets, and each Purchaser’s payment obligation, and "true-up"
the budget at the end of the year.
v Evaluate and select methods to fund any necessary required Project Work or
evaluate Option Project Work.
v Make an initial determination of "customary" insurance.
v Adopt maintenance schedules.
v Adopt procedures relating to electric power reserves.
v Consider additional funding to the Renewal and Contingency Reserve Fund above
current requirements.
Special Purpose Committees. The BPMC may appoint special purpose committees from time
to time, subject to such conditions as may be prescribed by the BPMC. The designation of a
special purpose or subcommittee doesn’t relieve the BPMC of any responsibility imposed by law
or the PSA.
Voting. Depending on the issue up for vote, different voting procedures will apply. Some
decisions are by majority vote. An example is the annual election of a Chairman, Vice
Chairman and Treasurer (the AEA representative is the permanent Secretary of the BPMC).
Some matters require the affirmative vote of at least four representatives of the Purchasers
whose percentage shares of Project capacity are greater than 51%. These matters do not require
action by the AEA. Examples would be the adoption of scheduling, production and dispatch of
Project power, and procedures for water allocation.
Some matters require the affirmative vote of at least four representatives of the Purchasers
whose percentage shares of Project capacity are greater than 51% plus the affirmative vote of
the representative of the AEA. Examples include arranging for the operation and maintenance
of the Project, adoption of annual budgets, Required or Option Project Work, and insurance,
among others.
The unanimous concurrence of all BPMC members is necessary for adoption of procedures for
dispute resolution.
The types of issues and voting requirements are specified in the Bylaws.
Open Meetings. The BPMC has suggested as a matter of policy, that all formal meetings of the
BPMC and its special purpose committees are open to the public. Certain subjects however,
may be discussed in a closed executive session. Examples of these subjects include matters
which would clearly have an adverse effect upon the finances of the AEA or the Project,
personnel issues, matters that are required to be confidential, or matters discussed with an
attorney.
PROCEDURES FOR DISPUTE RESOLUTION
Procedural Rules. The BPMC performs its decision-making responsibilities consistent with the
PSA and any duly adopted procedural rules.
Authority. In the event the authority of the BPMC to act is at issue, the BPMC shall first make
a finding as to its authority. If the BPMC determines that it has authority to consider the matter,
it shall decide the issue on its merits. If the BPMC determines that it does not have authority
to consider the matter, the matter will be subject to immediate judicial resolution. If the court
determines that the BPMC in fact had authority to consider the matter, the matter shall be
remanded for BPMC action.
Judicial Review. Any action, or failure to act, of the BPMC shall be subject to judicial review.
The reviewing court shall (a) set aside any BPMC action found to be arbitrary, capricious or
otherwise not in accordance with law or with the terms of the PSA, and (b) order the BPMC to
take action if such action has been unreasonably withheld or delayed. Failure of any party to
appeal any BPMC decision shall not constitute a waiver of the right to appeal any future
decision. Judicial review shall be governed by the laws of the State of Alaska and shall be filed
in the Alaska Court System.
Arbitration. Upon agreement of the BPMC representatives of the AEA and any three utilities,
the BPMC may refer any matter within the BPMC’s authority to arbitration. Unless otherwise
unanimously agreed to by the members of the BPMC, arbitration shall be conducted before an
arbitrator selected under the guidelines of the American Arbitration Association and the arbi-
tration shall be conducted in accordance with the commercial arbitration rules of the American
Arbitration Association then in effect. In addition, the arbitrator must have education and
experience in the particular matter being arbitrated. The arbitrator shall have no authority,
power or jurisdiction to alter, amend, change, modify, add to or delete any of the provisions of
the PSA and the decision of the arbitrator shall be subject to judicial review as a BPMC
decision.
Costs of Arbitration. The costs incurred in connection with the arbitration shall be apportioned
by the arbitrator as she or he deems appropriate.
Payments Pending Resolution. Pending resolution of any dispute, each Party shall continue to
perform its obligations.
Lawsuit:
Disputes arose between the AEA and the Purchasing Utilities concerning the determination of
Annual Project Costs for the 1993 and 1994 fiscal years. The Authority included in its estimate,
costs which the Purchasing Utilities contended were not properly chargeable as Annual Project
Costs.
On July 15, 1992, the Purchasing Utilities filed a lawsuit in Alaska Superior court for
declaratory relief and breach of contract to resolve the budget dispute. The Purchasing Utilities
filed a supplemental complaint on February 22, 1994, adding the 1994 budget dispute.
As settlement, $250,000 was appropriated by the Alaska State Legislature and deposited in the
Bradley Lake Revenue Fund. In addition, payment to the AEA for administrative services
during fiscal years 1994 and 1995 was set. For fiscal years staring with 1996, the payment to
the Authority is $275,000 (to be adjusted annually), plus the Authority’s actual cost for third
party contract services for FERC compliance work.
If in the future, the Authority or the Committee reduces the Authority’s duties, then the annual
amount will be adjusted. The AEA voluntarily agreed to reduce its charges for FY97.
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ae: BRADLEY LAKE BUDGET SUBCOMMITTEE REPORT g
The Bradley Lake Budget Subcommittee met on February 6, 1996 to discuss the proposed
FY'97 Bradley Lake Budget.
The issue of a Scheduled Maintenance Fund was discussed at length. In a memo dated
January 4, 1996 from AIDEA, Dennis McCrohan requests that the Bradley Lake PMC
revise the FY1996 and FY1997 Budget to include a sinking fund payment for deposit in
the Scheduled Maintenance Fund. During preliminary discussions with the budget
subcommittee as well as AIDEA, there was a question as to whether the sinking fund was
a requirement of the Bond financings. A subsequent review by AIDEA's bond Counsel as
well as Ron Saxton have resulted in the conclusion that the BPMC IS NOT obligated to
revise the Annual Project Budget to include the proposed sinking fund payments. Ron
Saxton further states "the BPMC has the option of making sinking fund payments or
paying for the cost of renewals and replacements in the year they actually occur or
through the issuance of additional bonds under certain circumstances."
The Bradley Budget Subcommittee voted on the motion to exclude the scheduled
maintenance fund payments from the revised FY'96 budget as well as the proposed
FY'97 budget. GVEA, CEA, Homer and ML&P supported this motion and AIDEA was
opposed. There fore, the Bradley Budget Subcommittee would recommend that the
BPMC support a motion to exclude payments for a scheduled maintenance fund in the
FY'97 budget.
Attachment "A" is a summary of the proposed FY'97 Operating budget.
The increases in "other O&M" are a result of the following:
- rebuild of the Martin Airstrip Access - $10,000
- Nuka Diversion repairs $5,000
- Division of Information Services (circuit maintenance) The O&D committee reviewed
and recommended that the Budget subcommittee approve the increase for circuit
maintenance $40,000
- Increase for seismic/USGS contract for stream monitoring - $13,000
- Airstrip Access- $10,000
(will probably be paid out of construction funds)
Regulatory Costs have increased for the following reasons:
- the five year inspection $65,000
- the follow-up requirements from the inspection - $20,000
- FERC admin. fees- $35,000
The budget subcommittee voted unanimously to support the FY'97 budget that you have
in front of you., The Operating budget totals $2,499,154 and debt service payments of
$13,390,560, for a total FY'97 budget of $15,889,714. The approved FY'96 budget was
$15,921,375, so the FY'97 budget is reflective of a .2% decrease. Utility contributions
will be $13,089,178 for FY'97 as compared with $13,054,836. The major reason for the
slight increase even though the budget has decreased centers on the utilization of surplus
balances. The FY'96 budget utilized a $1,059,000 surplus as compared to the $959,037
surplus utilized in the FY'97 budget. Through the utilization of these surpluses, the
revenue fund balance has been reduced to $100,000. Keep in mind that there is still an
operating reserve of $535,000 that we have carried over the past four budget cycles.
The Budget subcommittee recommends that the BPMC support a motion to adopt the
FY'97 budget as submitted:
Total Operations $2,499,154
Debt Service $13,390,560
TOTAL FY'97 $15,889,714
ALASKA ENERGY AUTHORITY
BRADLEY LAKE HYDROELECTRIC PROJECT
FY96
FY94 FY95 FY96 REVISED FY97
ACTUALS ACTUALS BUDGET FORECAST BUDGET
REVENUES, EXPENSES & CHANGES IN SURPLUS
REVENUES
UTILITY CONTRIBUTIONS 13,919,892 13,919,892 13,054,836 13,054,836 13,089,178
INTEREST INCOME 1,878,861 1,923,471 1,697,500 1,891,980 1,841,500
FROM OPERATING RESERVE 90,000
AEA SETTLEMENT 250,000 24,600
PRIOR YEAR CORRECTIONS 1,756
TRANSFER FROM ARBITRAGE 25.465
15,888,753 16,095,119 14,752,336 14,996,881 14,930,678
EXPENSES
OPERATIONS 2,292,875 2,125,894 2,530,650 2,351,861 2,499,154
DEBT SERVICE 13,388,240 13,391,285 _ 13,390,725 _ 13,390,725 _ 13,390,560
15,681,115 15,517,179 15,921,375 15,742,586 _15,889,714
CURRENT YEAR
SURPLUS (DEFICIT) 207,638 577,940 (1,169,039) (745,705) (959,036)
BEGINNING SURPLUS 1,019,163 1,226,801 1,524,044 1,804,741 1,059,036
ENDING SURPLUS 1,226,801 1,804,741 355,005 1,059,036 100,000
BALANCE SHEET al Od ASSETS a5 ! REVENUE FUND 486,443 481,305 355,005 868,106 100,000 i A OPERATING FUND 1,516,838 2,004,613 190,930 : SCHEDULED MAINTENANCE FUND : : 2,003,281 2,485,918 355,005 1,059,036 100,000
LIABILITIES & SURPLUS LIABILITIES 776,480 681,177 SURPLUS 1,226,801 1,804,741 355,005 1,059,036 100,000 2,003,281 2,485,918 355,005 1,059,036 100,000
OTHER INFORMATION
OPERATING RESERVE 535,000 535,000 535,000 535,000 535,000
MONTHLY CONTRIBUTIONS 1,159,991 1,169,991 1,087,903 1,087,903 1,090,765
CONTRIBUTION TO SCHEDULED MAINTENANCE FUND 610.200 B00
2/6/96,3:49 PM h:ALL\ELAINE\97BLBUD.XLS
BRADLEY LAKE
FY97 BUDGET
MONTHLY UTILITY CONTRIBUTION
PERCENT Fy95 FY96 FY97 FY97
POWER PURCHASER SHARE TOTAL TOTAL TOTAL INCREASE
CHUGACH ELECTRIC 30.4% 4,231,644 3,968,670 3,979,110 10,440
MUNICIPALITY OF ANCHORAG 25.9% 3,605,256 3,381,203 3,390,097 8,894
AEG&T 25.8% 3,591,336 3,368,148 3,377,008 8,860
GOLDEN VALLEY ELECTRIC 16.9% 2,352,456 2,206,267 2,212,071 5,804
CITY OF SEWARD 1.0% 139,200 130,548 130,892 344
100.0% _ 13,919,892 13,054,836 _ 13,089,178 34,342
CES IRATE AMRIT OG RR RETR A a ARS ER
PERCENT FY95 FY96 FY97 FY97
POWER PURCHASER SHARE MONTHLY MONTHLY MONTHLY INCREASE
CHUGACH ELECTRIC 30.4% 352,637 330,723 331,593 870
MUNICIPALITY OF ANCHORAG 25.9% 300,438 281,767 282,508 741
AEG&T 25.8% 299,278 280,679 281,417 738
GOLDEN VALLEY ELECTRIC 16.9% 196,038 183,856 184,339 484
CITY OF SEWARD 1.0% 11,600 10,879 10,908 29
100.0% 1,159,991 1,087,903 1,090,765 2,862
2/6/96,3:49 PM
$1,059, a
poe"
H\ALL\ELAINE\AEA\97BLBUD.XLS
BRADLEY LAKE BUDGET
ACTIVITY BY ACCOUNT
Balance 6/30/95
FY96 Projection
Revenues
Interest
Workers Comp Adjust.
Arbitrage Adjustment
Transfers to O&M
Transfers to Debt Service
96 O&M Requisitions
Sched Maint Fund Dep
Debt Payment 1/1/96
Debt Payment 7/1/96
Projected Balance 6/30/96
FY97 Budget
Revenues
Interest
Transfers to O&M
Transfers to Debt Service
97 O&M Reauisitions
Transfer to Sched Maint
Debt Payment 1/1/96
Debt Payment 7/1/96
Projected Balance 6/30/97
RevFund O&MFund DebtFund OpReserve SchMaint R&C CapReserve [otal
481,306
13,054,836 1,891,980 24,600 25,465 (1,219,356) (13,390,725)
868,106
13,089,178 1,841,500 (2,308,224) (13,390,560)
100,000
1,323,435
1,219,356
(2,351,861)
190,930
2,308,224
(2,499,154)
2
13,390,725
(5,207,863)
(8,182,863)
2
13,390,560
(5,110,280)
(8,280,280)
2
Page 3
535,000
535,000
535,000
21%
5,000,009
5,000,009
5,000,009
13,392,890 20,732,641
13,054,836
1,891,980
24,600
25,465
(2,351,861)
(5,207,863)
(8,182,863)
13,392,890 19,986,936
13,089,178
1,841,500
(2,499,154)
(5,110,280)
(8,280,280)
13,392,890 19,027,901
97BLBUD.XLS/Cash Balances, 2/6/96, 3:49 PM
DATE: 02/07/96 TIME: 11:26 AM TO: Mary Ann Pease ¢ 926358868 PAGE: 002-008
BRADLEY LAKE OPERATIONS & MAINTENANCE ATTACHMENT A FY97 BUDGET
FY97
FY96 BUDGET INCREASE
BUDGET PROPOSAL (DECREASE)
SUMMARY
HEA O&M Contract Total 1,027,800 899,800 (128,000)
CEA Dispatch and Substation/SVC Maintenance 196,400 190,000 (6,400)
Other O&M 472,550 547,700 75,150
Insurance Costs 362,400 358,075 (4,325)
Regulatory Costs 108,500 : 223,500 115,000
2,167,650 _ 2,219,075 51,425
Administrative Costs 363,000 280,079 (82,921)
Attachment A, Page 1 of 7 2/7/96/1 1:22 AM, 97BLBUD.XLS
DATE: 02/07/96 TIME: 11:26 AM TO: Mary Ann Pease & 92635688 PAGE: 003-008
BRADLEY LAKE OPERATIONS & MAINTENANCE ATTACHMENT A
FY97 BUDGET
FY97
FY96 BUDGET INCREASE
BUDGET PROPOSAL (DECREASE)
FERC 535 - Operation Supervision & Engineering
HEA O&M Contract 173,300 139,000 (34,300)
Other BS 173,300 Ff 139,000 __(34,300)
FERC 537 - Hydraulic Expenses
HEA O&M Contract 33,000 25,000 (8,000
33,000 FY 25,000 '8,000)
FERC 538 - Electric Expenses
HEA O&M Contract 173,100 149,100 (24,000
173,100 E3 149,100 24,000)
FERC 539 - Misc. Hydraulic Power Generation Expenses
HEA O&M Contract 164,600 132,500 (32,100)
DIS Voice/Data Circuits - Bradley 76,100 92,000 15,900
DIS 2-way Radio Circuits - Bradley 35,700 22,300 (13,400)
DIS 2-way Radio Maintenance - Bradley 18,500 18,500
DIS Space & Power - Bradley 28,400 28,400
Other FE 0
276,400 F3 293,700 17,300
FERC 540 - Rents
Bradley Lake FERC land use fees 65,000 65,000 0
Other 0
65,000 F 65,000 0
FERC 542 - Maintenance of Structures
HEA O&M Contract 21,000 7,500
21,000 7,500
FERC 543 - Maintenance of Reservoirs, Dams & Waterways
HEA O&M Contract 11,000 (4,100)
Nuka Diversion Repars §,000 5,000
16,000 900
FERC 544 - Maintenance of Electric Plant
HEA O&M Contract 332,200 (37,200)
Other 0
332,200 37,200)
FERC 545 - Maintenance of Misc. Hydraulic Plant
HEA O&M Contract 81,000 13,000
Martin Airstrip Access Rebuild : 10,000 10,000 68,000 Ff 91,000 23,000
Attachment A, Page 2 of 7 2/7/96/1 1:22 AM, 87BLBUD.XLS
DATE: 02/07/96 TIME: 11:26 AM TO: Mary Ann Pease @ 92635888 PAGE: 004-006
BRADLEY LAKE OPERATIONS & MAINTENANCE ATTACHMENT A
FY97 BUDGET
FY97
FY96 BUDGET INCREASE
BUDGET PROPOSAL (DECREASE)
FERC 556 - System Control & Load Dispatching
HEA O&M Contract 17,800 9,000 (8,800)
CEA Dispatch Contract 126,400 85,000 (41,400)
CEA Software Dispatch Program Amort 20,000 20,000 0
NOAA Weather Service 6,250 6,000 (250)
Northern Ecological Minimum Flow Study 39,000 39,000 0
SCS Snow Measurement 12,500 12,500 0
UAA Seismic monitoring 50,000 53,000 3,000
USGS Minimum Flow Study 38,000 42,000 4,000
USGS Streamguaging 120,000 126,000 6,000
Rissinger Lease 33 0
429,950 F 392,500 (37,450)
FERC 562 - Station Expenses
CEA SVC/Substation Maintenance Contract 50,000 85,000 35,000
HEA Junction Maintenance 2,000 (2,000
52,000 Ey 85,000 33,000
FERC 571 - Maintenance of Overhead Lines /
HEA Overhead Line Maintenance 28,000 28,000 0
28,000 Fe 28,000 0
FERC 920 - Administrative Expense i
AEA Admin Fee (FY97 adjusted by index increase) 275,000 F4 212,079 62,921
AEA Administrative Costs 275,000 Fi 212,079 (62,921)
PMC Costs
Bradley Lake Audit fees 15,000 15,000 0
Bradley Lake PMC Legal 30,000 30,000 0
Bradley Lake Trustee fees 20,000 20,000 0
Bradley Lake Arbitrage Report 3,000 3,000
Bradley Lake PMC Budget 5,000 (5,000)
Bradley Lake PMC Recording 18,000 (18,000)
Delegabie Engineering functions ee eed 0
PMC Costs 88,000 68,000 (20,000)
TOTAL FERC 920 363,000 280,079 (82,921
FERC 924 - Property Insurance
RSA with Risk Management 20,000 20,000 0
Bradley Lake PMC Insurance 9,075 9,075
Homer Electric Insurance 52,400 34,000 (18,400)
Insurance Premiums 290,000 295,000 5,000
362,400 Fa 358,075 (4,325)
Attachment A, Page 3 of 7 2/7/96/1 1:22 AM, 97BLBUD.XLS
DATE: 02/07/96 TIME: 11:26 AM TO: Mary Ann Pease & 92635888 PAGE: 005-008
BRADLEY LAKE OPERATIONS & MAINTENANCE ATTACHMENT A
FY97 BUDGET
3 FY97
FY96 sf BUDGET INCREASE
BUDGET fj PROPOSAL (DECREASE) FERC 928 - Regulatory Commission Expenses se
FERC administrative fees 75,000 110,000 35,000
FERC administrative fees (FY94 refund) 0
Contractual Engineer - Bradley FERC Licensing 28,500 28,500 0
Contractual Engineer - Rule Curve Development 5,000 FE (5,000)
Contractual Engineer - Perform 5 year Inspection 65,000 65,000
20,000 20,000 Contractual Engineer - Inspection follow-up
Americans w/ Disabilities Survey 0
TOTAL BRADLEY LAKE BUDGET
(31,496)
Attachment A, Page 4 of 7 2/7/96/1 1:22 AM, 97BLBUD.XLS
DATE: 02/07/96 TIME: 11:26 AM TO: Mary Ann Pease # 92635868 PAGE: 006-008
ALASKA ENERGY AUTHORITY
BRADLEY LAKE HYDROELECTRIC PROJECT
FY96
FY94 FY95 FY9S6 REVISED FY97
ACTUALS ACTUALS BUDGET FORECAST BUDGET
REVENUES, EXPENSES & CHANGES IN SURPLUS
BEVENUES
UTILITY CONTRIBUTIONS 13,919,892 13,919,892 13,054,836 13,054,836 13,089,178
INTEREST INCOME 1,878,861 1,923,471 1,697,500 1,891,980 1,841,500
FROM OPERATING RESERVE 90,000
AEA SETTLEMENT 250,000 24,600
PRIOR YEAR CORRECTIONS 1,756
TRANSFER FROM ARBITRAGE 25,465
15,888,753 16,095,119 14,752,336 14,996,881 14,930,678
EXPENSES
OPERATIONS 2,292,875 2,125,894 2,530,650 2,351,861 2,499,154
DEBT SERVICE 13,388,240 13,391,285 13,390,725 13,390,725 _ 13,390,560
15,681,115 15,517,179 15,921,375 15,742,586 _15,889,714
CURRENT YEAR
SURPLUS (DEFICIT) 207,638 577,940 (1,169,039) (745,705) (959,036)
BEGINNING SURPLUS 1,019,163 1,226,801 1,524,044 1,804,741 1,059,036
ENDING SURPLUS 1,226,801 1,804,741 355,005 1,059,036 100,000
BALANCE SHEET
ASSETS
REVENUE FUND 486,443 481,305 355,005 868,106 100,000
OPERATING FUND 1,516,838 2,004,613 190,930 -
SCHEDULED MAINTENANCE FUND : :
2,003,281 2,485,918 355,005 1,059,036 100,000 re EE
LIABILITIES & SURPLUS
LIABILITIES 776,480 681,177
SURPLUS 1,226,801 1,804,741 355,005 1,059,036 100,000
2,003,281 2,485,918 355,005 1,059,036 100,000
OTHER INFORMATION
OPERATING RESERVE 535,000 535,000 535,000 535,000 535,000
MONTHLY CONTRIBUTIONS 1,159,991 1,159,991 1,087,903 1,087,903 1,090,766
2/7/196,11:22 AM h:ALL\ELAINE\97BLBUD.XLS
DATE: 02/07/96 TIME: 11:26 AM TO: Mary Ann Pease ¢ 92635886 PAGE: 007-008
ATTACHMENT C
BRADLEY LAKE FY97 BUDGET MONTHLY UTILITY CONTRIBUTION
PERCENT FY95 FY96 FY97 FY97
POWER PURCHASER SHARE TOTAL TOTAL TOTAL INCREASE
CHUGACH ELECTRIC 30.4% 4,231,644 3,968,670 —-3,979,110 10,440 MUNICIPALITY OF ANCHORAG 25.9% 3,605,256 3,381,203 3,390,097 8,894 AEG&T 25.8% 3,591,336 3,368,148 3,377,008 8,860 GOLDEN VALLEY ELECTRIC 16.9% 2,352,456 2,206,267 —s.2,212,071 5,804 CITY OF SEWARD 1.0% 139,200 130,548 130,892 344
100.0% 13,919,892 13,054,836 13,089,178 34,342
PERCENT FY95 FY96 FY97 FY97 POWER PURCHASER SHARE MONTHLY MONTHLY MONTHLY INCREASE
CHUGACH ELECTRIC 30.4% 352,637 330,723 331,593 870 MUNICIPALITY OF ANCHORAG 25.9% 300,438 281,767 282,508 741 AEG&T 25.8% 299,278 280,679 281,417 738 GOLDEN VALLEY ELECTRIC 16.9% 196,038 183,856 184,339 484 CITY OF SEWARD 1.0% 11,600 10,879 10,908 29
100.0% 1,159,991 1,087,903 1,000,765 2,862
ER ST TN TS A Te
2/7/96,1 1:22 AM H\ALL\ELAINE\AEA\97BLBUD.XLS
BRADLEY LAKE BUDGET
ACTIVITY BY ACCOUNT
Balance 6/30/95
FY96 Projection
Revenues
Interest
Workers Comp Adjust.
Arbitrage Adjustment
Transfers to O&M
Transfers to Debt Service
96 O&M Reauisitions
Sched Maint Fund Dep
Debt Payment 1/1/96
Debt Payment 7/1/96
Projected Balance 6/30/96
FY97 Budget
Revenues
Interest
Transfers to O&M
Transfers to Debt Service
97 O&M Requisitions
Transfer to Sched Maint
Debt Payment 1/1/96
Debt Payment 7/1/96
Projected Balance 6/30/97
481,306 1,323,435
13,054,836
1,891,980
24,600
25,465
(1,219,356) 1,219,356
(13,390,725)
(2,351,861)
868,106 190,930
13,089,178
1,841,500
(2,308,224) 2,308,224
(13,390,560)
(2,499,154)
4% of Annual O&M Budget
13,390,725
(5,207,863)
(8,182,863)
2 535,000
13,390,560
(5,110,280)
(8,280,280)
2 535,000
21%
Page 7
13,392,890 5,000,009 20,732,641
13,054,836
1,891,980
24,600
25,465
(2,351,861)
(5,207,863) (8,182,863)
19,986,936
- 5,000,009 13,392,890
13,089,178
: 1,841,500
(2,499, 154)
(5,110,280)
(8,280,280)
—_ ee 100,000 = SE I ICIS : 5,000,009 13,392,890 —_ 19,027,901
of Annual O&M Budget
97BLBUD.XLS/Cash Balances, 2/7/96, 11:22 AM Seeseozs 2 eswea UUW AzeH :OL HV 9Z:IT :3MIL 96/L0/Z0 *BLV0 800-800
CHUGACH ELECTRIC
ASSOCIATION, INC.
Cin kectric
EUGENE N. BJORNSTAD, P.E.
eee CEIVE General Manager
9 2986
February 6, 1996 Alaska industrial Development
and Export Authority
Stan Sieczkowski
Alaska Energy Authority
480 West Tudor Road
Anchorage, Alaska 99503
Subject: Bradley Lake Dispatch Audit Report
Dear Mr. Sieczkowski:
I am sure you have seen a copy of the recent audit report in regards to Chugach’s Bradley Lake
Dispatch services for 1995. The results of the audit were presented and discussed at the January 18,
1996 Bradley Lake Operations & Dispatch Subcommittee meeting which was held jointly with the
Bradley Lake Budget Subcommittee. Chugach did not concur with the findings of the audit and
specifically objected to the concept of deriving resource allocation algorithms by capacity measures.
The committee determined that the dispatch agreement did not have a resource allocation
methodology that could be utilized to determine billable costs for each dispatch function. As a result
of this consensus, the Bradley O&D committee was tasked with establishing a reasonable method
of allocation.
Chugach believes it is in the best interest of all the interconnected utilities to resolve this issue as
soon as possible. In addition, we believe the agreed upon resolution should eliminate sources of
future disagreement between the participants.
Chugach wishes to resolve the on-going disputes regarding the appropriateness of both Intertie
controller and operator charges, specifically those charges relating to Bradley Lake Dispatch,
Southern Alaska Intertie Controller, and Northern Alaska Intertie Controller. Chugach proposes the
following resolution:
Chugach will perform all services presently being performed at no cost to the Bradley Lake
participants. Chugach’s provision of such service, at no cost, is contingent on the Northern and
Southern Controllers performing the services they presently perform at no cost to the participants
in the Alaska Intertie Agreement.
5601 Minnesota Drive * P.O. Box 196300 * Anchorage, Alaska 99519-6300
Phone 907-563-7494 * FAX 907-562-0027
Alaska Energy Authority 2 February 6, 1996
The duties Chugach will continue to perform as Bradley Lake Dispatcher, at no cost, are broadly
outlined in Exhibit C, Dispatch Duties, of the Bradley Lake Dispatch agreement and more
specifically in the attached functional breakdown of these duties entitled “Bradley Dispatch and
Scheduling Functions.” Chugach will expect the Northern and Southern Controller to provide a
similar breakdown of their duties to be included in the agreement.
Hopefully this arrangement will continue to provide the interconnected system with adequate
controller and operator expertise, while eliminating the acrimonious debate which has surrounded
the substantiation of charges relating to these functions.
I would appreciate your support in adding this to the February 13, 1996 PMC meeting agenda.
Sincerely,
CHUGACH ELECTRIC ASSOCIATION, INC.
Sree MN. ee et Eugene N. Bjornstad
General Manager
ENB/BJH:dlw
c:\wpwin\docs\bradres.frm
enclosure
CG: Railbelt Utilities
Bradley Dispatch and Scheduling Functions
Bradley Dispatch Functions
1. Entering and coordinating Bradley Schedule
Item 1. Dispatch Agreement Exhibit C
2 Loss accounting
Item 6. Dispatch Agreement Exhibit C
Section 8. Scheduling and Allocation Agreement
Item 9. Dispatch Agreement Exhibit C
35 Operation of Daves Creek and Soldotna SVCs
Item 3 Dispatch Agreement Exhibit C
4. Correlate Actual vs Schedule Data
Item 1 Dispatch Agreement Exhibit C
D5 Monitor Plant and System
Item 4 Dispatch Agreement Exhibit c
Bradley Power Scheduler
i Review and Adjust Hydro Allocations
Item 6. Dispatch Agreement Exhibit C
Item 7. Dispatch Agreement Exhibit C
Ds Monitor and Update Reservoir Level Rule Curve
Item 6. Dispatch Agreement Exhibit A
Item 7. Dispatch Agreement Exhibit A
35 Participate in Bradley O&D
Item 5. Dispatch Agreement Exhibit C
Item 6. Dispatch Agreement Exhibit C
4. Review and Confirm Schedule vs Actual Data
Item 1. Dispatch Agreement Exhibit C
55 Maintain and Operate Long Term Hydro-Thermal Scheduling Program
Item 5. Dispatch Agreement Exhibit C
Item 10. Dispatch Agreement Exhibit C
Sect. 8.aIV Transmission Services Agreement
6. Coordinates Wheeling Utility Maintenance Schedules
Item 1. Dispatch Agreement Exhibit C
7. Auditing/Correcting Bad SCADA Data
Item 1. Dispatch Agreement Exhibit C
Sto
BRADLEY LAKE HYDRO PROJECT
OPERATION AND DISPATCH COMMITTEE
FEB. 13, 1996
RECOMMENDATION
The Operation and Dispatch Committee recommends the approval of the
Project Construction List developed by the O&D committee dated Feb. 9,
1996 describing 18 items plus a contingency for an amount not to exceed
$2,336,000. The funds for these tasks are authorized from the existing
Bradley Lake Construction Fund.
BRADLEY LAKE HYDRO PROJECT
CONSTRUCTION LIST
OPERATION AND DISPATCH COMMITTEE REVIEW _ =f EBE. 1996
_ITEM_|DESCRIPTION, ——“—ti—sSsSsSS ESTIMATE
|
1 [THE BRADLEY RIVER SALMON STUDY CONTRACT | _—_—_—$290, 000 | 2 ATER RELEASE SCADA MODIFICATIONS —_—|~—_—«$ 200,000
___3__ MOOSE MITIGATION FUND __ _ _ ___4 __ [DIVERSION PORTAL TUNNEL LEAKAGE __ _5 _ |POWERHOUSE FLOOR CS $125,000 6 _|STATIC VAR COMPENSATOR SPARES $175,000. _7 _|EQUIPMENT i t—“—(‘Cs:::::”C“‘(‘;SSCSézLCSC¥N $30,000 | 8 __|MISC PROJECT ENGINEERING _ | __- $50,000
___9__|FISHWATER BYPASS DEBRIS REMOVAL _ { 10 _|ADITACCESS MODIFICATION 11 [BUILDINGS ROOF MODIFICATION nl ~ $100, 000 12. |AIRFIELDROADACCESS __|__$95,000 13 |COLD WEATHER MODIFICATIONS $30,000 14 |RIP RAP UPSTREAM FACE OF LEFTDAMABUTMENT | _‘ $175,000. _15 [APPROVED WORKORDERS | $154,000 16 |PENSTOCKCONDENSATION | __ $25,000
17 _|GOVERNOR SPEED CONTROL MODIFICATION | __ $50,000 18 |SYSTEMANALYSIS EQUIPMENT $250,000 | 19 |CONTINGENCY@10% ss | $212,000
TOTAL $2,336,000
BLCTRBDA.XLS Page 1 2/13/96 ‘SLs
BRADLEY LAKE HYDROELECTRIC PROJECT
CONSTRUCTION LIST
2/9/96
The Bradley River Salmon Study Contract
The Bradley River salmon study contract expired on 12/31/95. Historically fish water
has been over released from the dam and the salmonoid wetted areas is unknown for
the spawning areas at the minimum 40 cfs required flows at the mouth of the Bradley
River. These studies intend to identify these spawning areas at the reduced flows, as
well as side flow contributions, and allow investigation and conclusions for requesting a
reduction of 5 to 10 cfs in the water releases through the dam from State and Federal
agencies. Upon concurrence, a FERC license amendment will be requested. Potential
increase in generation at a 5 to 7 cfs reduction is estimated to be approximately 10
MWAH per day. At $25/MWH this equates to approximately $68,500 per year. Long
term benefits can be derived if approval and a FERC Amendment is received.
Estimate to complete the studies and the FERC license amendment is $290,000.
Fish Water Release SCADA Modifications
Instrumentation:
Add an RTU on the North Fork - using a bubblier or another measuring
device. Data from RTU will allow Fish Water Release Valves to respond
quicker to flow changes. Thus creating a more responsive control
system.
A weir located in the North Fork stream to allow for an easy and accurate
reading of the flow in the North Fork.
A piping system for monitoring flow during freezing conditions.
A weir at the Lower Bradley River to facilitate an environment that is
easily monitored.
SCADA:
Change Snap Tables to include variables such as tides, rain and,
freezing.
Insert an anticipated flow feature into the existing Snap Tables.
Create new Snap Tables for controlling Fish Water releases at the Lower
Bradley gaging site.
Estimate for providing these modifications is $200,000.
Moose Mitigation Fund
A moose mitigation plan is required per the FERC license. Land was purchased and
the endowment for management needs to be funded.
Estimate for. establishing the fund is $200,000.
Diversion Portal Tunnel Leakage
There is about a 60 gpm leak through the cracks in the ceiling area above the penstock
in the Diversion Portal when the lake is spilling. This has caused problems in the past
and temporary pumps had to be installed to remove the water from the Diversion Valve
area. Water levels in the Diversion Valve area have reached a height that has covered
the Valve operators.
Drain pipes are recommended to be installed in the Diversion Portal, from the penstock
area through the area where the valves are located. This will allow water that has
leaked into the penstock area to drain directly outside of the Diversion Portal, instead of
draining into the area where the valves are located. Also install a drainage pump to
accommodate the times when the level of the water outside the Diversion Portal is
higher than what would be the elevation of the newly installed drain pipe outlets.
This system will have to include check valves, a pressure switch to activate the pump,
heat tracing, an outlet above the high water elevation, and a motor starter circuit. A
SCADA circuit may be installed for monitoring. This will take two men an estimated 30
hours to install the piping and an estimated 15 hours to install the electrical controls.
The design of the system will have to be engineered.
Estimate for this modification is $50,000.
Powerhouse Floor
Areas of the floors in the Powerhouse were not sealed during construction and staining
from oils, water, rusting pipes, and normal use are causing discoloration and damage to
these areas. Water is penetrating the concrete where the concrete has cracked. The
existing sealer is also cracked and water, oil, and dirt are getting into these cracks.
The Powerhouse floors need to be sealed to protect them from deterioration. Sealing
not only protects the floors it also looks better and is easier to keep clean.
There is approximately 31,500 square feet of flooring that needs sealing. The sealing
of the floors will have to be done in such a way that continuous operation of the
powerhouse is not impeded. This could lengthen the amount of man-hours needed to
apply the sealer.
This will take an estimated 200 man-hours to complete. This will include cleaning and
preparation, as well as applying sealer to the floors.
Estimate for the floor sealing is $125,000
Static VAR Compensator (SVC) Spares
Spares are required for the SVC systems at Daves Creek and Soldotna Substation.
CEA has inventoried the existing equipment and reviewed a recommended list. Spare
capacitors and electronic control boards need to be purchased.
Estimate for the spares is $175,000.
Equipment
Portable Welding Exhaust Fan. This is a safety item that removes the noxious gas
from the area where welding is being done.
Aluminum Scaffolding 50 vertical feet in height will allow us to reach most places on the
project. 50 Feet will allow for the opportunity of setting up two individual scaffolds for
spanning an object or a gap. It will allow for a working platform for painting or
performing maintenance.
An eight foot Snow Plow for the front of one of the pickups will accelerate the time it
takes to move the snow off the roads, when there is just a small amount to deal with.
This will also cut down the run time of the Grader and the Loader. Several Pickups can
be purchased for the cost of the chains and tires for the loader and grader.
Estimate for equipment is $30,000.
Misc. Project Engineering
Changing the starting of the Emergency Generator scheme so when the Essential Bus
is lost the Generator starts. Needs Engineering.
Installing safety cable on the west side of the Powerhouse will allow for cleaning the
windows in the Control Room.
Install guard rail mechanisms around hatches above the Service Water Pumps and Fire
Water Pumps.
Estimate for Misc. Project Engineering is $50,000.
Fish Water Bypass Debris Removal
The amount of debris that is built up around the Fishwater Valve intakes is hard to
assess, due to it being underwater. The debris will have to be moved away from the
intake of the Fishwater Valves to prevent blocking of the intakes.
10.
qe
12.
A diver will have to be brought in to inspect the conditions around the intakes. Due to
very limited vision in the silted water, this will have to be done by feel. After
ascertaining the amount of debris, a decision will have to be made on how best to
remove the debris.
The lake may be lowered to accommodate heavy equipment to get to the area or a
team of divers may be brought in to move the debris. Spring of 97 appears to be a
good time to do this work. This time period fits with the Utilities schedule also.
Estimate for accessing the fishwater bypass intake area is $100,000.
Adit Access Modification
The floor area around the bottom section of the Bulkhead builds up with ice in the
winter time. This creates abnormal directional forces on the end of the manifold.
Building a barrier in front of the bulkhead and heating this area would alleviate these
stresses on the manifold and keep the glaciating of the floor to a minimum.
Power for the heater would come from the nearby transformer yard. A heater(s) of the
appropriate size would have to be installed in this area and thermostats would control
the heater(s).
An estimated 90 man-hours would be required to complete this task.
Estimate for modifying the Adit Access is $25,000.
Buildings Roof Modification
Roof modifications to divert the snow away from the entryways on the
Shop/Warehouse, Crews Quarters, and Duplexes is a safety issue The 18 identified
entrances can be inundated by the accumulation of gathered show that exists on the
roof area above them. If the snow comes off the roof while someone is walking out,
they may be seriously injured or crushed. The snow that slides off these roofs is in
such quantity that they keep the entryways from opening and therefore an exit may be
blocked. This is not acceptable in a fire condition. The “Crickets” will need to be
Engineered and due to the liability and amount of time required to complete this task a
contractor will have to be brought on site to do the job. Transporting the material will
need to be a consideration.
Estimate for Roof Modifications is $100,000.
Airfield Road Access
The Airport Access Road to the original construction airfield (Martin River Airstrip) will
give the Air Carrier an alternative landing strip in adverse weather. The airstrip in
service now is sufficient for most days, but high velocity, circling winds can cause
havoc on certain occasions. The opening of the Martin River airstrip will encompass
the installing of low water crossings and the hauling of road material to build up the
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portion of the road removed to a single lane. An estimated 150 man-hours will be
needed to complete this job. Permitting is almost complete for this project.
Estimated road construction costs are $95,000.
Cold Weather Modifications
Long periods of below normal cold weather can have some ill effects on the
Powerhouse. The intake freezing air coupled with penstock water temperatures of
32.5°F can and has caused problems in the Unit Turbine Area. The intake of the
discharge chamber froze to the extent that the chamber was not vented properly and
the level of the water in the discharge chamber increased to over 7.0 feet and was still
rapidly climbing when it was discovered. To correct this problem, some of the air in the
Powerhouse will be vented into the discharge chamber air intake piping. A flow monitor
will be installed on the intakes of the discharge chambers to alarm when flow
decreases.
The pipes that serve as the overflow for the Clean Water Sump protrudes through the
Powerhouse wall. They are susceptible to freezing with water flowing through them at
32.5°F and an ambient temperature of -5°F. Heat tracing the pipes and outlet would
keep them from freezing.
Estimate to make these modifications is $30,000.
Rip Rap Upstream Face of Left Dam Abutment
The left Abutment of the Dam on the upstream side should be Rip Rapped to prevent
further erosion. High winds and lake water wave action has caused erosion of the fill
material and the loss of a survey monument over the past five years. There is no
safety hazard at the present time.
Estimate for this effort is $175,000.
Approved Work Orders
331.01 - Crickets and Dormer Engineering (BL-22-95)
332.01 - Fishwater Bypass Control Engineering (BL-21-95)
Designing and implementing an improved method of controlling the Fishwater Release
can save thousands of dollars. Therefore, all aspects of the Fishwater should be
studied. See item 2.
333.01 - Air/Oil Separators (BL-01-94)
The Fuji oil separators are not doing the job of removing the oil from the air
being forced across the upper and lower guide bearing tubs. This oil mist was
being carried all around the Powerhouse by the ventilation system. The oil mist
was collecting on the fans, filters, and most importantly the control circuitry. It
was also mixing with the carbon dust, from the Exciter Brushes, and coating the
Thyristors and the internals of the Power System Stabilizers. A piping system
has been installed to convey the oil mist outside. The piping system contains
inline filters to remove the oil mist before the air is released outside. The
effectiveness of this system is being monitored.
333.03 - Powerhouse Lockers (BL-15-95)
The lockers supplied are near worthless, due to their size. They are only 6
inches wide and a rain coat pretty much fills them up. Lockers in the area of 18
inches would allow for storing items like high voltage gloves, climbing/fall
restraint equipment, overalls, etc.
333.05 - Governor Improvement (BL-26-95)
SWEC, PTI, and Woodword Gov. studied a specific outage and made
recommendations for modifying the governor response.
334.01 - Control Circuits (BL-08-94)
The Fire Protection System on the Main XFMRs has inadvertently tripped the
Unit (s) twice this past year. The unit tripping has since been disabled and the
alarming remains in service. The need re-engineer the operation of this system
is essential if the Fire protection Circuit is going to function properly.
The System that supplies cooling water to the Station Service Air Compressors
is not performing adequately. The system is designed with two Fisher Flow
Controllers, back to back. The first Controller reduces the water off the
penstock to 250 PSI, the second Controller reduces the pressure to 60 PSI.
The controllers fight each other and erratic operation of both the Controllers
causes the downstream Controller to overpressurize and thereby damage itself
and overpressurize the Cooling System. The Controllers are designed for
continuous flow control and the system they are on is an off and on system tied
to the start and stop of the Station Service Air Compressors. The System is
being operated with the upstream controller set above the Penstock pressure,
thereby taking it out of the picture. The downstream controller is set at 60 PSI
and is tuned to respond slowly. Fisher Controls has said that this valve will not
function used like this.
Re-engineering the System will ensure an adequate and reliable Cooling
System for the Station Service Air Compressors.
An expansion tank of an ample size would compliment the system. Separating
the Fisher Controllers would also benefit the operation of the Valves. An
estimated 75 man-hours will be needed to make these changes.
334.04 - Diesel Generator Control Modifications (BL-20-95)
A Cool Down Circuit for the Generator will allow the generator to cool down
before shutting off. The Turbo needs a chance to cool down before the
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generator is shutdown. Shutting the Generator off after it has run at full
removes the oil pressure to the Turbo. A Cool Down Timer on this circuit will
ensure proper oil pressure to the Turbo.
334.05 - 13.8KV Relay Modification (BL-23-95)
Adding a Ground Fault Relay to the Station Service XFMR Feeder Breaker will
cause the respective 13.8KV breakers to trip, in case of a fault on the XFMR
side of the Breaker, instead of tripping the respective Unit off line. This will
need to be engineered.
335.10 - Repair Storage Roofs (BL-18-95)
The wooden storage buildings at the lay down area needs new roofing material
installed if the buildings are kept on the project.
335.11 - Repair Parapet Wall/Gatehouse Roofs (BL-19-95)
Repair to the Parapet Walls will protect the wall from damage by water,
freezing, etc.
Repair of damage/missing roof material will protect these structures from rain,
snow, freezing, and other forms of deteriorating circumstances.
Complete the procurement of spare parts
Estimate for the items not completed is $154,000.
Penstock Condensation
The Penstock, located on the 5 ft level, gets a lot of condensation on it during much of
the year. The dripping water compounds the problem by evaporating into the air and
ending up back on the penstock as condensation. A ventilation system would move the
air out of the 5 ft level and help to solve this maintenance problem. The Slip Joint on
the Penstock has shown signs of deterioration and a dryer environment would help this
problem.
Estimate for this modification to the air supply is $25,000.
Governor Speed Control Modification
The governor response to system frequency deviations is slow in the AGC mode of
operation. An updated study requiring firm recommendations for setting the governor
parameters is recommended. A scope of work and schedule will be recommended to
the Operation and Dispatch Committee for action.
Estimate for study is $50,000.
18. System Analysis Equipment
The Daves Creek and Soldotna Substation SVC systems have been selected for Digital
System Monitors (DSM). This equipment would be beneficial in providing information to
operate the interconnected systems and analyze system deviations that effect Bradley
and the interconnected utilities.
Estimate for this equipment is $250,000.