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HomeMy WebLinkAboutBPMC Jan 27, 2014 2SSeS tt 10. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING AGENDA Monday, January 27, 2014 1:30 — 3:30 p.m. Alaska Energy Authority’s Board Room 813 West Northern Lights Boulevard, Anchorage, AK CALL TO ORDER ROLL CALL (for Committee members) PUBLIC ROLL CALL (for all others present) PUBLIC COMMENT AGENDA COMMENTS / MOTION FOR APPROVAL OLD BUSINESS A. Telemetry of Bradley Lake into Chugach Load Balancing Area (Res. 2014-01 - action item) B. Status report on Power House Controls Upgrade Project (possible action item) C. Kenai Outage Nov. 22, 2013 NEW BUSINESS A. Budget Amendment (action item) B. HEA Jan. 17, 2014 Proposed Resolutions (possible action items) 1. Resolution 2014-03 — Repair of Fish Water Release System 2. Resolution 2014-04 — Update Loss Factors 3. Resolution 2014-05 — Legal Counsel Correspondence Distribution 4. Resolution 2014-06 — Committee member's invitation to all discussion meetings regarding Bradley Lake project issues 5. Resolution 2014-07 — Project Dispatcher to follow prescribed schedule OPERATORS REPORT COMMITTEE ASSIGNMENTS ADJOURNMENT To participate by teleconference, dial 1-800-315-6338 and use code 3074#. CONSENTING AND APPROVING RESOLUTION OF THE BRADLEY LAKE HYDROELECTRIC PROJECT MANAGEMENT COMMITTEE RESOLUTION NO. 2014-01 Telemetry of Bradley Lake into Chugach Load Balancing Area WHEREAS, pursuant to Section 13 of the Bradley Lake Hydroelectric Project Agreement for the Sale and Purchase of Electric Power (the "Power Sales Agreement") dated as of December 8, 1987, by and among the Chugach Electric Association, Inc.(Chugach), Golden Valley Electric Association, Inc., the Municipality of Anchorage d/b/a Municipal Light and Power, the City of Seward d/b/a Seward Electric System, and Alaska Electric Generation & Transmission Cooperative, Inc., and as Additional Parties Homer Electric Association, Inc. (“HEA”), and Matanuska Electric Association, Inc. (as used herein collectively, the "Purchasing Utilities"), and the Alaska Energy Authority (the "Authority" ), the Project Management Committee (the "Committee") has been formed for the purposes and with the responsibilities specified by the Power Sales Agreement; and WHEREAS, pursuant to section 13 (c) (ii) (A) the committee is required to arrange...” for the operation and maintenance of the Project, and the scheduling, production, and dispatch of the Project power...”; and WHEREAS, as of December 31. 2013, HEA began transition from a net requirements customer of Chugach (via the tri-partite agreement) operating within Chugach’s Load Balancing Area; and, WHEREAS, on January 1, 2014, HEA began operating its own Load Balancing Area (LBA) and take on the duties of a Load Balancing Authority; and, WHEREAS Chugach Electric will remain the Project Dispatcher; and, WHEREAS, HEA is the Operator of the Project Power Plant and through various agreements the Project transmission lines south of Quartz Creek; and, WHEREAS, the Project facilities must telemetered out of the HEA LBA and into the Chugach LBA; and, WHEREAS, it is in the best interest of the Project and the interconnected Railbelt grid to accurately account for and allocate electrical losses; and, WHEREAS, the following LBA interchange configuration will minimize the magnitude of required Project loss adjustments, and simplify real and reactive power energy accounting. NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE COMMITTEE as follows: Committee Determination: The Committee has determined that it is in the best interests of the interconnected Railbelt grid, the Purchasing Utilities and their respective customers or members that Project facilities south of Quartz Creek be telemetered out of the HEA LBA and into the CEALBA with the LBA boundary defined by following interchange points: Bradley Lake MOD 2425 (real and reactive interchange with Diamond Ridge line) Soldotna 115 -69 kV transformer (real and reactive interchange ) Soldotna 115 kV line to Diamond Ridge (real and reactive interchange ) Soldotna 115 kV line to Bernice Lake (real and reactive interchange ) Soldotna LM 6000 generator (real and reactive interchange) Sterling Substation T-1 (Sterling real and reactive ) Quartz Creek Breaker 442 (Quartz to Soldotna 69 kV line) CEA, the Project dispatcher, will continue to schedule energy and capacity, for the participants delivered to CEA, at HEA’s Soldotna Substation, as currently defined in the Bradley Lake “Agreement for the Wheeling of Electric Power and for Related Services. DATED at Anchorage, Alaska, this 27" day of January, 2014. Secretary Chair REs 2014-01 LOAD BALANCING BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING January 27, 2014 Meeting Agenda Item: 7A MOTION: Move to amend the FY14 R&C budget (Schedule D) to increase the Replacement of Electro-Mechanical Relays to $410,000 and add $1,842,388 for the Fish Water Screen Debris Removal project. Additionally, to reduce the interest earning by $717,000. Move: Second: OVERVIEW OF BUDGET CHANGES BETWEEN FY14 AND Amended FY14 FY14 Utility Contributions Reduced interest earnings R&C Budget amendments Increase for fish water screen debris removal ($1,842,388 x 25%) Increase for mechanical relay project ($410,000 x 25%) TOTAL FY14 Amended Utility Contributions 16,855,124 717,000 460,597 102,500 1,280,097 18,135,221 BRADLEY LAKE HYDROELECTRIC PROJECT Schedule A FY2014 FY2014 —s INC(DEC) FRM Budget Budget ORIGINAL REVENUES, EXPENSES & CHANGES IN SURPLUS (Amended) ‘BUDGET REVENUES UTILITY CONTRIBUTIONS 16,855,124 18,135,221 1,280,097 INTEREST INCOME 2,217,900 4,500,900 (717,000) OTHER MISC INCOME 0 0 0 STATE OF ALASKA BATTLE CREEK FEASIBILITY GRANT 0 0 0 ° o o 19,073,024 19,636,121 563,097 EXPENSES OPERATIONS 4,828,670 4,828,670 0 RENEWALS/REPLACEMENTS (R&C FUND REPAYMENTS) 1,328,074 4,891,171 563,097 NON R&C FUND CAPITAL PURCHASES-SEE A1 475,500 475,500 ° GRANT FUNDED PORTION OF BATTLE CREEK FEASIBILITY 0 0 ° TRANSFER TO (FROM) OPERATING RESERVE 45,830 45,630 0 DEBT SERVICE (net of Capital Reserve Reductions) 12,104,950 12,104,950 0 ARBITRAGE TRANSFER 290,000 290,000 ° ° 19,073,024 79,636,121 | 563,097 CURRENT YEAR SURPLUS (DEFICIT) 0 BEGINNING SURPLUS (DEFICIT) () ENDING SURPLUS (DEFICIT) ~ BALANCE SHEET ASSETS REVENUE FUND OPERATING FUND RECEIVABLE FROM R&C OTHER RECEIVABLES PREPAID EXPENSES LIABILITIES & SURPLUS LIABILITIES PREPAID UTILITY CONTRIBUTION PAYABLE TO UTILITIES R&C REPAYMENT locoo | eooco OTHER INFORMATION OPERATING RESERVE * 965,734 MONTHLY CONTRIBUTIONS 1,511,268 * Required to be 20% of budgeted operating expense 44,38 +1, 200) w asd 1/2/20141:09 PMH:\all\KVeech\Bradley Lakes Hydroelectric Project\Budget\FY 14\201 4BradieyBagt revised for int amendment. xisSchedule A-Budget Summary BRADLEY LAKE MONTHLY UTILITY CONTRIBUTION SCHEDULE C BUDGET Original Amended Amended PERCENT FY2013 FY2014 FY2014 FY2014 POWER PURCHASER SHARE TOTAL BUDGET BUDGET Change CHUGACH ELECTRIC 4% 5,231,100 5,123,952 §,513,112 389,160 MUNICIPALITY OF ANCHORAGE 25.9% 4,456,764 4,365,480 4,697,028 331,548 AEG&T-HEA 12.0% 2,064,912 2,022,612 2,176,224 153,612 AEG&T-MEA 13.8% 2,374,644 2,326,008 (2,502,660 176,652 GOLDEN VALLEY ELECTRIC 16.9% 2,908,080 2,848,512 3,064,848 216,336 CITY OF SEWARD 1.0% 172,080 12,804 Rounding = Original Amended PERCENT FY2013 FY2014 FY2014 FY2014 POWER PURCHASER SHARE MONTHLY MONTHLY = MONTHLY Change CHUGACH ELECTRIC 30.4% 435,925 426,996 459,426 32,430 MUNICIPALITY OF ANCHORAGE 25.8% 371,387 363,790 391,419 27,629 AEG&T-HEA 12.0% 172,076 168,551 181,352 12,801 AEG&T-MEA 13.8% 197,887 193,834 208,555, 14,721 GOLDEN VALLEY ELECTRIC 16.9% 242,340 237,376 255,404 18,028 CITY OF SEWARD 1.0% 14,340 14,046 15,113 1,067 100.0% 1,433, 404,593 4,511, 106,676 PER YR 17,207,567.00 16,855,124.00 18,135,221 PER MO 1,433,964.00 1,404,593.67 1,511,268.00 vuly-vanuary tris July - January February - July Make up Amended POWER PURCHASER pymts pymts Payments Payments CHUGACH ELECTRIC 2,988,972 2,287,130 227,010 5,513,112 MUNICIPALITY OF ANCHORAGE 2,546,530 1,957,095 193,411 4,897,036 AEG&T-HEA 1,179,857 906,760 89,607 2,176,224 AEG&T-MEA 1,356,838 1,042,775 103,047 2,502,660 GOLDEN VALLEY ELECTRIC 1,661,632 1,277,020 126,196 3,064,848 CITY OF SEWARD 98,322 75,565 7,469 181,356 9,832,151 7,556,345 748,740__ 18,135,236 “Amended monthly Total payments payments for February - POWER PURCHASER February - June June CHUGACH ELECTRIC 504,828 2,524,140 MUNICIPALITY OF ANCHORAGE 430,101 2,150,506 AEG&T-HEA 199,273 996,367 AEG&T-MEA 229,164 1,145,822 GOLDEN VALLEY ELECTRIC 280,643 1,403,216 CITY OF SEWARD 16,607 83,034 1,660,617 8,303,085 1/6/20148:56 AM H:\alKKVeech\Bradiey Lakes Hydroelectric Project\Budget\FY 14\2014BradieyBdgt revised for int amendment xisSchedule C Utility Contrib R&C FUND DISBURSEMENTS AND REPAYMENTS ‘SCHEDULE D Amended ‘Actual TO REPAY TO REPAY Description at 06/30/11 at O6/30/14 R&C FUND PROJECTS |Governor 2,779,953.51 3,604,753.51 Replace RFLS 251,082.69 251,092.69 Replace Runners 1,946,732.79 1,946,732.79 ce cable from dam to power house 2,321,822.94 2,321,922.94 ce power system stabilizer 143,813.02 591,444.40 R ce two RTUs 86,905.27 86,905.27 Repairs 675,966.79 675,966.79 rans Towers Frost Jacking Repairs 887,596.62 887,596.62 Replace Plant and SCADA Controls 0.00 1,408,298.67 bration Monitoring System 490.00 490.00 Battle Creek Feasibility-Note A 0.00 0.00 Fire Alarm System Replacement 0.00 290,000.00 Replace Electro-Mechanical Releys 0.00 1,325,000.00 ‘Water Screen Debris Removal 0.00 [Battle Creek Diversion 0.00 x 9,094,573.63 | _1,455,830.05 Temas Current Year R&C Repayment (883,075.00) djust bal to $5 mill 0.00 [Less Interest in Fund Applied to Repayment 09,829.60) Net Transfer from Revenue Fund '1, 192,904.60) FY12 Interest iCurmulative Prior Years R&C Repayments (7,890,873.12)) Due back to Utilites 773,897.74 R&C Cumulative Interest (Retained) Applied As Part of Repayment 531,773.16 7 648,748.54 INET DUE TO R&C FUND 1,708, 750.54 IR&C FUND CASH FLOW PROJECTION Beginning investment Balance 3,872,242.58 Disbursements-current year (849,472.80)| Disbursements-prior year accrued (82,071.19)| Utilities’ R&C Repayment 537,901.26 1,891, 170.78 year interest earnings 309,829.60 0.00 Ct year Participants Contributions to R&C 883,075.00 [Due back to Utilites [Ending Investment Balance 4,671,504.45 corued R&C Payable at year end-Due to Utilities (773,897.74) Accrued R&C Payable at year end (606,357.25) [PROJECTED NET DUE + ENDING INVESTMENT BALANCE 5,000,000.00 REPAYMENT AMOUNT $238,606 X 25% Fy0o 59,651.54 $954, 181.80 X 25% FY10 238,545.45 $756,665.11 X 25% FY14 189,166.28 421 1,455, 830.05 X 25% FY12 363,957.51 |1st yr $2,235,000 x 25% FY13 $3,117,188 x 25% FY14 1/8/20147:45 AM H:\all\KVeech\Bradiey Lakes Hydroelectric Project\Budget\F Y14\2014BradieyBdgt revised for int amendment.xisSchedule D R&C Disb & Repay CONSENTING AND APPROVING RESOLUTION OF THE BRADLEY LAKE HYDROELECTRIC PROJECT MANAGEMENT COMMITTEE RESOLUTION 2014-03 Proceed with Repair of the Fish Water Release System WHEREAS, the Bradley Lake Hydroelectric Project FERC permit requires prescribed fish water release flow; and WHEREAS, not meeting the prescribed flow could result in Violations; and WHEREAS, preventing such Violations is a priority of both the Owner (AEA) as well as the BPMC; and WHEREAS, debris over the years has plugged/partially plugged the inlet ports to the fish water release system making the fish water release system inadequate during certain conditions; and WHEREAS, continued failure to act could result in a Violation of the applicable FERC permit as well as placing the Project at risk of an expensive loss of water. NOW, THEREFORE, BE IT RESOLVED, that the BPMC require the Bradley Lake Hydroelectric Project Operator and Maintainer to proceed with the repair of the fish water release system; and BE IT ALSO RESOLVED, that the Operation and Dispatch Subcommittee immediately begin planning to coordinate water usage (drawdown) with the work of the Project Operator. BE IT ALSO RESOLVED, that the Project Dispatcher operate the plant in such a manner as to meet the prescribed drawdown schedule. DATED at Anchorage, Alaska, this 27" day of January, 2014. Chair Secretary CONSENTING AND APPROVING RESOLUTION OF THE BRADLEY LAKE HYDROELECTRIC PROJECT MANAGEMENT COMMITTEE RESOLUTION 2014-04 Resolution to Require Updated Loss Factors WHEREAS, the Bradley Lake Hydroelectric Project Amendment to the Agreement for Sale of Transmission Capability by and among HEA and the Participants states in Section 3(b) that “HEA shall be compensated for line losses, if any, resulting from the power of the Purchasers flowing over the Soldotna Segment;” and WHEREAS, in the same section it is also stated that “The Project Management Committee will determine the amount of line losses and the appropriate amounts and manner of compensation;” and WHEREAS, the current loss curve is dated, contains visual irregularities and fails to match measured losses; and WHEREAS, requirements for unit commitment and the physical location of units on the Kenai Peninsula differs significantly from when the previous curves were calculated; and WHEREAS, electrical laws of current flow dictate that losses in the HEA system occur on more than just the Soldotna Segment; and WHEREAS, HEA, at the January 19, 2012, meeting of the BPMC, requested that the BPMC take up the issue of correcting the currently used loss calculations, and WHEREAS, to date the BPMC has failed to act upon HEA’s request; and WHEREAS, the BPMC’s failure to timely act upon HEA’s request has, in HEA’s opinion, resulted in significant costs being inappropriately imposed upon HEA members for losses created by export energy flows from the Bradley project. NOW, THEREFORE, BE IT RESOLVED, that the BPMC immediately accept the HEA Loss Calculation based upon the June 2012 EPS loss studies or immediately commission a new loss study with a competent engineering firm with experience in loss calculations as well as knowledge of Kenai infrastructure. The loss factor calculations should include reasonable line contingencies as well as generation dispatch and commitment for the Soldotna Segment as well as the adjoining Kenai Infrastructure. DATED at Anchorage, Alaska, this 27" day of January, 2014. Chair Secretary CONSENTING AND APPROVING RESOLUTION OF THE BRADLEY LAKE HYDROELECTRIC PROJECT MANAGEMENT COMMITTEE RESOLUTION 2014-05 Resolution to Require ALL Correspondence from BMPC Legal Counsel to be Distributed to ALL BPMC Members WHEREAS, the Bradley Lake Project Management Committee retains legal counsel for advice and guidance; and WHEREAS, such advice and guidance may be useful for each and every BPMC member in order to make decisions in furtherance of the project good; and WHEREAS, each BPMC member utility pays for BPMC legal counsel through its utility contributions. NOW, THEREFORE, BE IT RESOLVED, that the BPMC require the BPMC Legal Counsel to ensure that any correspondence, notes, or emails created as Legal Counsel to the BPMC, destined for any member, to be distributed to all BPMC members. DATED at Anchorage, Alaska, this 27" day of January, 2014. Chair Secretary CONSENTING AND APPROVING RESOLUTION OF THE BRADLEY LAKE HYDROELECTRIC PROJECT MANAGEMENT COMMITTEE RESOLUTION 2014-06 Resolution to Require Invitation to ALL BPMC Members for Scheduled Sessions of Two or More Members in Which Discussion Involves Bradley Lake Hydroelectric Project Issues WHEREAS, some of the Bradley Lake Project Management Committee Members may meet from time to time to discuss planning, strategies, disputes, as well as other matters where no votes or minutes are taken; and WHEREAS, all BPMC members as well as the AEA should be afforded the benefit of such exchange of ideas; and WHEREAS, the BPMC By-Laws already provide (section 5.11.5) for meetings in which all participants are acting individually as representatives of the Parties to the Agreement and not as the assembled Committee. NOW, THEREFORE, BE IT RESOLVED, that the BPMC require Invitation to all BPMC members as well as the AEA, but not the obligation to attend, for any pre-scheduled meeting of two or more Members in which discussion is substantial and in part to involve Bradley Lake Hydroelectric Project Issues; and BE IT ALSO RESOLVED, the BPMC Chairman as well as each individual Member is tasked with ensuring that requirement of being “substantial” or “pre- scheduled” is not abused. DATED at Anchorage, Alaska, this 27" day of January, 2014. Chair Secretary CONSENTING AND APPROVING RESOLUTION OF THE BRADLEY LAKE HYDROELECTRIC PROJECT MANAGEMENT COMMITTEE RESOLUTION 2014-07 Resolution to Require the Project Dispatcher to Follow the Prescribed Daily / Hourly Schedule Until Such Time as Dynamic Scheduling of Bradley Energy Can Be Implemented WHEREAS, the Bradley Lake Allocation and Schedule Procedures contract requires a weekly schedule be produced and contains procedures to modify and implement said schedule; and WHEREAS, the Wheeling and Related Services Contract Section 8 subpart (a) subsection (iv) states as “Duties for the Dispatcher:” (iv) Coordinating with HEA in order that the Dispatcher and HEA alike will minimize, to the extent reasonably practicable, any potential conflicts between and among (A) HEA's system operations, (B) Chugach's system operations, and (©) the dispatch of Project generation and the provision of services to the Wheeling Utilities in the manner contemplated by this Agreement. And, WHEREAS, not adhering to the weekly / hourly schedule is causing operational problems for the HEA Load Balancing Area; and WHEREAS, the BPMC has passed resolution 2013-04 stating the BPMC’s intention to implement dynamic scheduling for the Project; and WHEREAS, the work to implement dynamic scheduling is not yet accomplished NOW, THEREFORE, BE IT RESOLVED, that the BPMC require the Project Dispatcher to return to the status quo and abide by and operate according to the current established contracts, particularly with respect to The Allocation & Scheduling Procedures Agreement, Section 5, subparts (b), (d), (f) and (g), until such time as the procedures and methods to dynamically schedule the Project can be completed. DATED at Anchorage, Alaska, this 27" day of January, 2014. Chair Secretary