HomeMy WebLinkAboutBradley Lake PMC Regular Meeting 08-31-2012BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING
REGULAR MEETING
(via electronic media at the Alaska Energy Authority’s Aspen Room)
Anchorage, Alaska
August 31, 2012
MINUTES
1. CALL TO ORDER
Chair Evans called the regular meeting of the Bradley Lake Hydroelectric Project
Management Committee to order at 9:00 a.m., Friday, August 31, 2012, from the AEA
Aspen Conference Room, Anchorage, Alaska to conduct the business of the Committee
per agenda and public notice.
2. ROLL CALL
Roll was called by Kim Lomen. The following members were present:
John Foutz City of Seward (late arrival)
Joe Griffith Matanuska Electric Association
Brad Evans Chugach Electric Association
Brad Janorschke Homer Electric Association (teleconference)
Cory Borgesen Golden Valley Electric Association
Jim Posey Anchorage Municipal Light & Power (late arrival)
Bryan Carey Alaska Energy Authority
3. PUBLIC ROLL CALL
May Clark, Kim Lomen and Kelli Veech (AEA); Brian Bjorkquist (AGO); Burke Wick,
Brian Hickey and (Mike Cunningham phone)(CEA); Harvey Ambrose, Bob Day and Larry
Jorgensen (HEA); Henri Dale (GVEA); Jeff Warner (ML&P); Don Zoerb, MEA (phone).
4. PUBLIC COMMENT
There were no public comments.
5. AGENDA COMMENTS/MOTION FOR APPROVAL
The agenda was unanimously approved.
6. Approval of Meeting Minutes — July 17, 2012
The July 17, 2012 meeting minutes were approved as amended.
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7. New Business
7A. Selection of Auditor
Mr. Cunningham said at the direction of the PMC, the finance Committee issued an RFP
for auditor services which was advertised in local newspapers. Two responses were
received and the scores were close. The finance committee worked hard on the
process.
MOTION: Mr. Janorschke moved that the Bradley Lake Project Management
Committee (BPMC) award the three-year audit services on the Bradley Lake
Hydroelectric Project (the project) operating and revenue funds for a three-year
term engagement with an option to renew for two additional years beginning with
the fiscal year ending June 30, 2013 to Swalling and Associates. Seconded by
Mr. Griffith.
A roll call vote was taken:
City of Seward: Abstain
Matanuska Electric Association: Yes
Anchorage Municipal Light and Power: Yes
Chugach Electric Association: Yes
Homer Electric Association: Yes
Golden Valley Electric Association: Yes
Alaska Energy Authority: Yes
The motion passed unanimously.
8. COMMITTEE REPORTS/COMMENTS
A. Operator's Report
Mr. Jorgensen reported the lake level as of August 29, 2012 was 1153.8 feet. Annual
gate testing was completed in July. The diversion tunnel piping was inspected and will
be recoated. There have been several issues with the interfacing of the new control
system with existing equipment both at the plant and with remote dispatch. Currently
both units can run from dispatch, but only up to 38 MW’s each. They can be run
manually from the site to full load. In remote control, as soon the transition is made to
six needle control there are stability issues, and we are working to resolve them. The
SVC at Soldotna was down causing Bradley to be limited to only one unit at a time due
to voltage limitations. More work will be done on the thyristors later this summer. The
SVC was returned to service on August 28 allowing both units to be run. R&M
Consultants have been on site performing work for the Diversion Project.
Chair Evans inquired as to where the governing documents are stating a plant can’t be
run when one SVC is down; after the SVC’s were put in, more problems occurred that
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never did before and we need to investigate why that is. High voltage does not mean
unstable. Mr. Hickey said the limitations are listed in a table in the original Bradley risk
contingency documents. PTI did the study at that time. Mr. Day pointed out that
operations were easier in the 1990s. Chair Evans agreed. CEA performed the repair
work on the Soldotna SVC. Mr. Griffith asked what the problem was now with the
thyristors and would it be a persistent issue. Chair Evans said he didn’t know if there
was one, but thought it might be the control card. Mr. Griffith said that task should be in
the ARCTEC proposal. Chair Evans said we should task the O&D to see what we want
to do and let the engineers and operators come back with a recommendation. HEA
accepted the assignment.
Mr. Day added that an inspection of Nuka Glacier area was performed and there are no
significant changes in the terrain. Not much water has flowed toward Bradley Lake as
historically, due to a colder summer.
B. Update on the Battle Creek Diversion Project
Mr. Carey said R&M began drilling August 20 and seismic work is complete. They will
drill for 10 more days, with a slight route change in part of the canal which will reduce the
amount of rock to be blasted. Engineering design is complete to the 65% level. A cost
estimate incorporating the geotechnical information should be done this fall. The draft
license amendment will be submitted in the fall of 2012. There will be a 90-day agency
comment period open until late December. PM&E negotiations with agencies will occur
January-March with final amendment approval expected in March 2013. FERC scoping
document will be received by April 2013 for a 60-day comment period. The
Environmental Assessment will be done by FERC and will have a 60-day response
period, EA comments and scoping document terms and conditions are due in the
Summer of 2013. Construction could occur in 2014 upon completion of the amendment,
permitting, and bidding.
Funding was discussed. Short-term funding is needed to finish design. Construction
funds must be received prior to bidding. $670K funding will be needed which includes
the current balance of $430K, adding in final design and bid documents, gaging,
environmental and licensing work and a 25% contingency. Mr. Griffith stressed the
urgency to determine where the funding source as soon as possible, perhaps from the
Renewable & Contingency Fund (R&C). Mr. Bjorkquist said this could possibly be an
R&C funded project as a capital improvement option if the BPMC approves. A bond
resolution allows the R&C Fund to apply for capital improvements defined as “to include
optional project work that is for the repair, renewal, replacement, improvement
betterment, additions or expansions which are capital improvements”. This project fits
some of those characterizations. There are also provisions in the Power Sales
Agreement for the BPMC to determine whether to do optional project work and to
determine how funding for that work should be. Mr. Bjorkquist recommended bond
counsel sign off on it.
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Mr. Griffith moved that the BPMC move forward and request funding from the
Renewable & Contingency Fund. Seconded by Mr. Posey. The motion was
amended by Chair Evans that the BPMC move forward and request the funds from
the R&C Fund following bond counsel approval. The amendment was accepted
by Mr. Griffith.
Mr. Bergeson said review of the R&C Fund could be an agenda item at the next meeting
to allow us to see what funding is actually available in the R&C Fund, there is no rush to
make a decision at this time. Mr. Bjorkquist said we also need to investigate impacts
and requirements to replenish the fund. Chair Evans agreed. He said this should be an
assignment for the finance committee to investigate.
Mr. Griffith withdrew the motion and Chair Evans assigned the task to the budget
committee and the counsel for the state.
Another option suggested was possibly getting allocation from ARCTEC. Chair Evans
agreed. Mr. Griffith said the ARCTEC projects are not done yet, so we don’t know what
funding is available. Chair Evans said the BPMC needs to discuss long-term funding,
i.e., grant funding through a similar model as Bradley Lake where the state will finance it
and we pay back 50% of the debt service. Mr. Posey agreed and said it had been
discussed previously. Mr. Dale asked if all the fish studies were done as it was a bad
salmon year. Mr. Carey said no fish studies were done this year. Since Chinook have
not been previously found and very little stray sockeye are present, Coho are the main
ADFG concern. The diversion will occur at 1700’ and flow will still be present in lower
Battle Creek. Six square miles of channel still flow in the winter and ADFG so far has
agreed with the work.
Mr. Day said the Bradley model doesn't fit the economics of this project, liking it to a
second payback mortgage for Bradley Lake where the money goes into the Railbelt
energy fund. It’s not a gift and the state does not contribute 50%, utilities continue to
payback. Mr. Bjorkquist said the payments continue until the utilities terminate the PSA.
B. Next Meeting Date
Depending on the progress of the tasks assigned, the next meeting will be at the call of
the Chair, but prior to October 1, 2012.
9. Adjournment
The meeting adjourned at 10:00 a.m.
Kode Face
Brad Evans, Chai
ATTEST:
Alaska Energy Authority, Secretary
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