Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Intertie Managment Commitee Meetings 01-16-2014 2
AGENDA INTERTIE MANAGEMENT COMMITTEE Regular Meeting 9:00 a.m.,Thursday,January 16,2014 Alaska Energy Authority 813 W Northern Lights Blvd,Anchorage,Alaska CALL TO ORDER ROLL CALL (for committee members) PUBLIC ROLL CALL (for all others present) AGENDA COMMENTS/MOTION FOR APPROVAL PRIOR MINUTES --November 1,2013;November 12,2013 PUBLIC COMMENT NEW BUSINESSee A.Organizational structure (Action item) B.Expenses allocation methodology for non-asset costs (Possible action item) C.Regulatory filings of Reliability Standards (Possible action item) D.Operators Report i.Asset status (Intertie and SVC's) ii.System operations status (reserves,grid operations &security) a.General status b.Events iii,|Operational Compliance conflict matters (energy accounting,LBA standards &others) a.Report structure b.Compliance events (Possible action item) E.Engineering i.Status of studies ii.|New studies (Possible action item) iii.|New interconnections (Possible action item) 8.NEXT MEETING DATE 9.ADJOURNMENT To participate via teleconference,dial 1-800-315-6338,enter code 3074# Nro *ALET iMG canil mamutes tle t adiz 7 "org structure fellow ue Tabled Mnufes -16 Tebied GVZATabled*8,Add Commete aes ANEA7it_Org.chart ere'Ss_eqn@ernINC cheat js_.giving HEAanthocit:yeeSclushen.Ciesycdh_VB-Tabled me C-Fu le.Fra d ayAIDcpoekby SAE UWaonerNewSchedulechang. J Ppuble recordsTequest Proce eduresTEalee:fraq_load)shady na _to_be dove seshASSGamentsFssoseceelacySSComuatheeSentoSecretS!NN Dudget Wu GVek GB)Stavdaals___WA_interconnection standa rds.Tn _fguectsert,"FO0mtoehawEas?EXIunine Opeecstorg Coum_has eS Oe|Bend toa tL CC StopsBEGapsawernbento.Lec,No CeaP*Cap Icnirg shruchio..|terpleteButeyylatherstantands_pse |(ost Sticchure PR requests ,Yhate Statuescostes.PR «gkBeSun\(Giver 647-622-7015, kdyorn Wet Jan sunil.buses &Rinrass, 'cern ,om 5%reas tek procesHens;ae,re,VO Cney of HEA-_roiOIA rc _Unsertonn Quiet a i Shear bape AGENDA INTERTIE MANAGEMENT COMMITTEE Regular Meeting 9:00 a.m.,Thursday,January 16,2014 Alaska Energy Authority 813 W Northern Lights Blvd,Anchorage,Alaska 1.CALL TO ORDER Uv 2.ROLL CALL (for committee members)Li" 3.PUBLIC ROLL CALL (for all others present) \Qi t4eAGENDA COMMENTS/MOTION FOR APPROVALattxy5.PRIPRIOR MINUTES-November1,2013;NoveNovember 12,2013",6.PUBLIC COMMENT 7.NEW BUSINESS FA 59 weerponeofNevwveeeneyA.Organizational structure (Ad(Action item)_---!vey oSNeatExpenses,aCllocation methodology for non-asset costs (Possible action item)Tato!ed-CNY "C.Regulatory filings of Reliability Standards (Possible action item)-/e Fday-- D.Operators Report GAT Woarnec i.Asset status (Intertie and SVC's) ii.|System operations status (reserves,grid operations &security) a.General status b.Events iii,|Operational Compliance conflict matters (energy accounting,LBA 0 standards &others)Vee:a.Report structureinéb.Compliance events (Possible action item) are E.Engineering Sys sup Committed SseConncte oei.Status of studies duc lao --hard ho Meck-sugsesh wer ling gep-23 pecweeleii.|New studies (Possible action item)iii.|New interconnections (Possible action item)w]ZS -rothira,to report)Com wwe8.NEXT MEETINGDATE felo it TAA tentahve Tyesd ay 9.ADJOURNMENT he if (Gard.Conphovee Cou metee -Conbleck To participate via teleconference,dial 1-800-315-6338,enter code 3074# ALASKA RAILBELT UTILITY OPERATING ANDRELIABILITY STANDARDS COMPACT This ALASKA RAILBELT UTILITY OPERATING AND RELIABILITY STANDARDS COMPACT (Reliability Compact),dated January 16,2014,is made by and between by Chugach Electric Association,Inc.(CEA),Golden Valley Electric Association,Inc. (GVEA),Matanuska Electric Association,Inc.(MEA),and the Municipality of Anchorage d/b/a/Municipal Light and Power (ML&P)(hereinafter referred to jointly as the "Reliability Compact Utilities”)in order to address an important area of mutual concern; the establishment and maintenance of a comprehensive set of policies and procedures governing operating and reliability standards for the interconnected Alaska Railbelt grid. RECITALS A.The Alaska Intertie Agreement established an operating committee,called the Intertie Operating Committee (IOC),to develop operating procedures and standard practices with respect to all matters affecting the operations of the Alaska Intertie. B.Shortly after the interconnection of the Railbelt Northern and Southern systems in 1985,the IOC reviewed,modified,and adopted the North American Electric Reliability Corporation (NERC)'s "Operating Guides for Interconnected Power Systems'for activities along the interconnected Alaska Railbelt grid. C.In 2006,the Railbelt Utility Group (RUG)directed their respective operations personnel to form an Ad-hoc Railbelt Reliability Committee (RRC)and tasked it with reviewing the most recent version of the NERC's "Reliability Standards for the Bulk Electric Systems of North America”and modifying and/or updating the planning and operating standards used by the utilities operating along the interconnected Alaska Railbelt grid. D.The RRC,working with representatives of the Alaska Energy Authority (AEA), formed a committee and used an open public process for the review of the standards promulgated by the NERC. E.The RRC modified the NERC standards for use by the interconnected Alaska Railbelt grid by drawing upon the existing Railbelt operating and planning standards,as well as recognizing the current practices of the utilities operating along the interconnected Alaska Railbelt grid. 1 of 5--ALASKA RAILBELT UTILITY RELIABILITY STANDARDS COMPACT (January 2014) F.In 2011,the Alaska Intertie Agreement was amended and restated.The Intertie Management Committee (IMC)became the successor to many of the responsibilities of the IOC under the Amended and Restated Alaska Intertie Agreement. G.The IMC directed a review of the work performed to date on the development of operating and reliability standards that was completed by the RRC,including proposing any changes,as well as adding any necessary operating standards required for completeness. H.The resulting Railbelt Operating and Reliability Standards were then submitted to the IMC and released for public review and comment. 1.On November 1,2013,the IMC voted to adopt the "Intertie Management Committee's Railbelt Operating and Reliability Standards,updated October 1, 2013”as the reserve capacity and operating reserves for the Alaska Intertie,and the operating policies and procedures,reliability standards,and enforcement mechanisms for the Alaska Intertie with the exception that the sanctions portion of the enforcement mechanisms would not be effective without further consideration and vote by the IMC. J.On November 1,2013,the Utility Participants of the IMC (CEA,GVEA,MEA,and ML&P)voted to adopt the "Intertie Management Committee's Railbelt Operating and Reliability Standards,updated October 1,2013”(now known as the "Railbelt Operating and Reliability Standards”)as the reserve capacity and operating reserves for the interconnected Railbelt electric utilities,and the operating policies and procedures,reliability standards,and enforcement mechanisms for the interconnected Railbelt electric utilities. K.The Reliability Compact Utilities are entering into the Reliability Compact to establish uniform,just,and reasonable operating and reliability standards for their utilities operating along the interconnected Alaska Railbelt grid. L.The Reliability Compact Utilities wish to adopt the Railbelt Operating and Reliability Standards,for their respective utilities. THEREFORE,the Reliability Compact Utilities agree: 2 of 5-ALASKA RAILBELT UTILITY RELIABILITY STANDARDS COMPACT (January 2014) 1.There is a need to establish uniform,just,and reasonable operating and reliability standards for the utilities operating along the interconnected Alaska Railbelt grid. 2.The establishment and maintenance of a comprehensive set of uniform policies and procedures governing operating and reliability standards for the interconnected Alaska Railbelt grid can be accomplished through adoption of .the "Intertie Management Committee's Railbelt Operating and Reliability Standards, updated October 1,2013”as adopted by the IMC on November 1,2013. 3.The "Intertie Management Committee's Railbelt Operating and Reliability Standards,updated October 1,2013”known as the "Railbelt Operating and Reliability Standards”and attached hereto as Appendix |will serve the public interest of all users of the interconnected Alaska Railbelt grid. 4.The Railbelt Operating and Reliability Standards are currently being used and implemented by the Reliability Compact Utilities. 5.The Railbelt Operating and Reliability Standards will be filed with the Regulatory Commission of Alaska (Commission)for approval as part of the Reliability Compact. 6.Itis in the best interest of the public that the Reliability Compact Utilities continue to use the Railbelt Operating and Reliability Standards without disruption while awaiting approval of the Commission. 7.The Reliability Compact Utilities will continue to review,fine-tune,and make necessary modifications and additions to these operating and reliability standards as circumstances require. 8.The Railbelt Operating and Reliability Standards and any modifications and additions to the Railbelt Operating and Reliability Standards will be filed with the Commission for inclusion into the respective tariffs of the Reliability Compact Utilities. IN WITNESS WHEREOF,,the Reliability Compact Utilities have each caused this Reliability Compact to be executed by their duly authorized representatives as of the date first above written.This Reliability Compact may be executed in counterparts each of which shall be an original,and all of which shall be merged into this Reliability Compact. 3 of 5-ALASKA RAILBELT UTILITY RELIABILITY STANDARDS COMPACT (January 2014) CHUGACH ELECTRIC ASSOCIATION,INC. By: (Title) SUBSCRIBED AND SWORN TO before me this day of ,last written. Notary Public,State of Alaska My Commission Expires: GOLDEN VALLEY ELECTRIC ASSOCIATION,INC. By: (Title) SUBSCRIBED AND SWORN TO before me this day of ,last written. Notary Public,State of Alaska My Commission Expires: 4 of 5--ALASKA RAILBELT UTILITY RELIABILITY STANDARDS COMPACT (January 2014) MATANUSKA ELECTRIC ASSOCIATION, INC. By: (Title) SUBSCRIBED AND SWORN TO before me this day of ,last written. MUNICIPALITY OF ANCHORAGE,ALASKA dba MUNICIPAL LIGHT &POWER By: (Title) SUBSCRIBED AND SWORN TO before me this day of ;last written. Notary Public,State of Alaska My Commission Expires: 5 of 5-ALASKA RAILBELT UTILITY RELIABILITY STANDARDS COMPACT (January 2014) ” ,J OO Win,NYIVEEL"|CHUGASs: ee POWERING ALASKA'S FUTURE MATANUSKA ELECTRIC ASSOCIATION Golden Salicy Electrte Association M [ip 80 YEARS ofposi-iveENERGY January XX,2013 DRAFT Regulatory Commission of Alaska 701 West Eighth Avenue,Suite 300 Anchorage,Alaska 99501-3469 RE:Request for Approval of the Alaska Railbelt Utility Operating and Reliability Standards Compact as a Special Contract and for Order Making Specific Findings. Dear Commissioners: This filing is made jointly by Chugach Electric Association,Inc.(CEA),Golden Valley Electric Association,Inc.(GVEA),Matanuska Electric Association,Inc.(MEA),and the Municipality of Anchorage d/b/a/Municipal Light and Power (ML&P),to the Regulatory Commission of Alaska (Commission)and requests immediate approval of the Alaska Railbelt Utility Operating and Reliability Standards Compact (Reliability Compact)'as a special contract pursuant to the Alaska Public Utilities Regulatory Act and 3 AAC 48.200 through 3 AAC 48.403.The Reliability Compact is an agreement by and between these utilities that formally adopts the Railbelt Operating and Reliability Standards that were formally adopted by the Alaska Intertie Management Committee?(IMC)at its meeting held November 1,2013.°The IMC Resolution approving the filing of the Railbelt Operating and Reliability Standards with the Commission supported the Commission finding that:1)the standards will serve the public convenience and necessity;2)the standards are just and reasonable;and 3)the mechanism and processes provided for in the standards for periodic review of the standards should be endorsed by the Commission. ML&P,CEA,GVEA,and MEA (Reliability Compact Utilities)have entered into the Reliability Compact in order to evidence their mutual concern for the need to establish just,reasonable uniform operating and reliability standards for the utilities operating along the interconnected Alaska Railbelt grid.This is an important first step.The utilities operating in the Railbelt will continue to review,fine-tune,and make necessary 1 The signatories to the Reliability Compact are referred to as the "Reliability Compact Utilities”in this filing for convenience.See Exhibit 1 for a copy of the Reliability Compact. 2 The IMC is comprised of CEA,GVEA,MEA and ML&P as well as the Alaska Energy Authority (AEA). 3 See IMC Resolution 13-3,dated November 1,2013 attached as Exhibit 2. 1 -Alaska Railbelt Utility Reliability Standards Compact modifications and additions to these operating and reliability standards as circumstances require. Upon approval by the Commission,the Reliability Compact Utilities will make the necessary compliance filings to include the submitted Railbelt Reliability Standards in their respective tariffs.The Railbelt Operating and Reliability Standards are a significant enhancement from any previous guidelines used in Alaska in terms of data collection and reporting.The technical requirements of the standards have historically been met and will continue to be met going forward;however,it is important to understand that the Reliability Compact Utilities do foresee a compliance implementation period over the coming months as the required reporting mechanisms are developed brought online and fine-tuned. Intertie Operating Committee Activities Representatives of the Reliability Compact Utilities participate on the Intertie Operating Committee (IOC).Shortly after the interconnection of the Railbelt Northern and Southern systems in 1985,the newly formed IOC reviewed,modified,and adopted the North American Electric Reliability Corporation (NERC)'s "Operating Guides for Interconnected Power Systems'.These documents later came to be known as the Alaska Systems Coordinating Councils (ASCC)Railbelt-wide operating and planning guidelines (Guidelines)although actual implementation and enforcement of the Guidelines remained one of the primary functions of the IOC. The IOC through its committee structure,which included the following subcommittees: e Budget Subcommittee e Maintenance Subcommittee e Dispatch and Operations Subcommittee e Relay Protection and reliability Subcommittee The IOC managed the Alaska Intertie assets,and essentially coordinated,managed and oversaw Railbelt operations and reliability throughout the Alaska Railbelt Grid. Figure 1 below,shows annual customer hours without power due to Grid level (power supply)outages for the Railbelt during this period.It is clear that the |OCs efforts have been successful. 2 -Alaska Railbelt Utility Reliability Standards Compact Power Supply Outages WwbwVaAverageHoursperConsumer2001200220032004200520062007B2008|20092010|2011|20122013|----Trend line @ Power Supply Outages (Chugach Retail) Figure 1 During the first twenty years of its existence,the 1|OC accomplished a number of significant achievements in the implementation of uniform Railbelt Guidelines. e The IOC compiled the PSS/E power flow and dynamic stability model. e The lOC participated in three NERC Control Area Reviews that were performed. (These reviews were multi-day events in which senior NERC control area operators from around the NERC regions reviewed Railbelt control area operations,judged performance,and provided both individual utility and group feedback.In each case,NERC representatives deemed Railbelt operations reliable and successful.The areas where improvements were suggested by NERC were noted by the l|OC and improvements implemented.The IOC also arranged system operator /dispatcher-training sessions to bring operator skill levels up to national norms.). e The IOC accomplished a number of highly technical implementations including: o Acomplete revision of the Railbelt under-frequency load shed scheme; o Integration of Bradley Lake into the Railbelt grid; o Implementation of Railbelt-wide automated Shed In Lieu of Spin (SILOS) schemes;and, o Support for improved relaying and protection. e The IOC analyzes all significant system disturbances and,through its members, implements the lessons learned. These actions,in coordination with the continuing efforts of the individual utilities to upgrade to the most advanced technologies available for electric utility power system management,have drastically improved the reliability of electric service to electric consumers in the Railbelt. 3 -Alaska Railbelt Utility Reliability Standards Compact NERC's standards (and the Railbelt Standards)had been under continuous review and development since their inception and in the intervening years,the electric industry changed significantly.Due to the multiplication of competing interests and the market power of the legacy utilities,the implementation of uniform non-discriminatory open access to the transmission grid required a mandatory approach to reliability.Further,in 2006,NERC's selection by FERC as the Electric Reliability Organization (ERO)for the U.S.(as well as parts of Canada and Mexico),spurred significant growth and refinement of the standards. With the imminent termination of the Alaska Intertie Agreement,the upcoming termination of the Tri-partite agreement,and significant technical efforts about to undertaken to re-integrate the modified Bradley Project into the grid,the IOC and Railbelt leadership felt a review and update to the standards was necessary.In late 2006,the Railbelt Utility Group*(RUG),at the behest of the IOC,directed their respective operating managers to form an Ad-hoc Railbelt reliability committee.This committee was tasked with reviewing the most recent version of the NERC's "Reliability Standards for the Bulk Electric Systems of North America”and further with modifying them and updating the planning and operating standards for the Alaska Railbelt.The committee made up of current and former members of the IOC and its subcommittees began formation in early 2007 and formal meetings began that spring with the adoption of committee ground rules®. The make-up of the original committee was as follows: Brian Hickey,Chugach -Chairman Frank Bettine -MEA Bob Day -HEA Henri Dale -GVEA Jim Strandberg -AEA Doug Hall -ML&P At the direction of MEA management MEA's representative was an observing and commenting participant only and was precluded from voting on any specific topics. Subsequently on July 9,2013,the following standards were adopted by action of the IMC (the successor committee to the l|OC) 1.The operating portions of the standards were adopted for all Railbelt facilities of the IMC members; 2.The reliability standards were adopted for all facilities of the member utilities (except the Alaska Intertie)without sunset; 3.The reliability standards were adopted for the State-owned assets of the Alaska Intertie with a one-year sunset clause. 4.AEA agreed to submit the document for an additional 60-days of public comment 4 The Railbelt Utility Group is comprised of the Presidents and General Managers of the Railbelt Utilities. 5 See attached Ground rules and AEA Website:http://www.akenergyauthority.org/RailbeltReliabilityHomePage.html 4 -Alaska Railbelt Utility Reliability Standards Compact Finally,the comments received by AEA following the 60-day comment period were incorporated into the standards,and the final version was approved with the same limitations noted in 1-4 above on November 1,2013. Railbelt operating and reliability standards are living documents constantly under review and modification.The operators of the Railbelt will continue to review,fine-tune and make necessary modifications and additions to these Standards as circumstances dictate. Railbelt Operating and Reliability Standards The Railbelt Operating and Reliability Standards that were approved by the IMC and adopted by the Reliability Compact Utilities through the Reliability Compact,represent the establishment of the first set of comprehensive policies and procedures governing operating and reliability standards in Alaska.The operating and reliability standards that are adopted by the Reliability Compact are comprised of fourteen (14)standards.The standards have been developed with the objective of achieving the five (5)following goals: e Toset the minimum requirements for interconnection to the interconnected Alaska Railbelt grid (understanding that the utility at the point of interconnection may have the need for additional or stricter requirements); e To establish performance based standards for interconnection to the extent practicable; e To avoid the degradation of the performance or reliability of the interconnected Alaska Railbelt grid by interconnecting entities and standardize the methodology for analyzing whether any degradation would occur by modeling the Railbelt electrical system using boundary dispatch cases against all category B and probable category C contingencies; e To limit the requirement for interconnecting utilities to make system improvements beyond what is necessary to meet the above goal of avoiding system degradation;and, e To establish the requirement that an entity desiring interconnection shall agree to abide by these operating and reliability standards (and all other applicable standards)as a condition for interconnecting onto the interconnected Alaska Railbelt grid. The fourteen (14)standards delineate how entities must plan for and operate their individual electric systems to assure a reliable interconnected Alaska Railbelt grid.The standards which the undersigned utilities have adopted and are requesting Commission approval draw heavily from the work performed by North American Electric Reliability Corporation (NERC),but have been necessarily modified where appropriate to 5 -Alaska Railbelt Utility Reliability Standards Compact recognize the current physical and technological state of the electric transmission system in Alaska. The standards adopted by the Reliability Compact include: Alaska Standard AKBAL-001-0 -Real Power Balancing Control Performance Alaska Standard AKBAL-002-0 -Disturbance Control Performance Alaska Standard AKBAL-003-0 -Frequency Response and Bias Alaska Standard AKBAL-004-0 -Time Error Correction Alaska Standard AKBAL-005-0 -Automatic Generation Control Alaska Standard AKBAL-006-0 -Inadvertent Interchange Alaska Standard AKFAC-001-0 -Facility Connection Requirements Alaska Standard AKFAC-002-0 -Coordination of Plans for New Facilities Alaska Standard AKRES-001-0 -Reserve Obligation and Allocation Alaska Standard AKTPL-001-0 -System Performance Under Normal Conditions Alaska Standard AKTPL-002-0 -System Performance Following Loss of a Single BES Element and Likely Subsequent Contingencies Alaska Standard AKTPL-003-0 -System Performance Following Loss of Two or More BES Elements Alaska Standard AKVAR-001-0 -Voltage and Reactive Control Alaska Standard AKVAR-002-0 -Generator Operation for Maintaining Network Voltage Schedules The AKBAL and AKVAR standards govern how balancing authorities®work with each other.These standards establish the balancing authority's obligation for maintaining reserve requirements. The AKFAC standards govern new construction,maintenance and ratings on a utility's system.These standards contain the interconnection requirements.As noted earlier, these interconnection standards establish minimum requirements for the utilities operating along the interconnected Alaska Railbelt grid and acknowledge that the utility at the point of interconnection may have the need for additional or stricter requirements. The AKRES standard delineates the reserves policy of the utilities operating along the interconnected Alaska Railbelt grid.This standard draws heavily upon Exhibit H to the Amended and Restated Alaska Intertie Agreement.The AKRES standard sets the requirements for the resource adequacy,operating reserves,spinning reserves,and regulating reserves.These standards have some amount of behavior modification built into them in that they have formulas that should incentivize an entity's compliance with §Most of the Alaskan utilities are vertically integrated and are each their own balancing authority. 6 -Alaska Railbelt Utility Reliability Standards Compact the standards in the event of nonperformance.It should be noted that these formulas are for minor infractions,and that for willful infractions further additional and more substantial sanctions may be warranted.Balancing authorities with small units (less than 10 MW)but with non-dispatchable fuel sources may find that they have little to no spin obligation,but will likely have a comparatively larger regulating obligation. The AKTPL standards address contingency categorization and utility reporting under normal and emergency conditions. An important component of the Railbelt Operating and Reliability Standards is that they represent a "living”set of standards that will be continually reviewed and modified when appropriate.For example,a significant attack or interruption to critical cyber-asset infrastructure could cause significant electric utility system disruptions,and implementation of open access will require standardizing and memorializing the Available Transfer Capability.The Participating Utilities,through the IMC,are currently working on "Critical Infrastructure Protection Standards”and Transfer Path Capacity modeling standards to address these issues.The resulting standards will be incorporated into the Railbelt Operating and Reliability Standards as soon as practicable. Another aspect of the Railbelt Operating and Reliability Standards is that the provisions do not address every eventuality.A prolonged interruption of the fuel supply to a generating unit is an unlikely,but highly disruptive contingency.For the Anchorage Bowl area,such an event would likely be coincident to a loss of heating fuel as well;an extremely disruptive event with major life safety consequences if such an event would occur in the winter.While not specifically addressed in the Railbelt Operating and Reliability Standards,there is a requirement that each generating entity have contingency plans for loss of the primary fuel supply. Jurisdiction of the Commission In accordance with Alaska law,public utilities are required to permit interconnection and joint use of facilities if the interconnection serves the public convenience and necessity and will not result in injury to the utilities'facilities or detriment to the provision of utility services.'Through adoption of the Railbelt Operating and Reliability Standards in the Reliability Compact,the Reliability Compact Utilities have,among other things,agreed to the conditions and practices of interconnection with their respective facilities.The Railbelt Operating and Reliability Standards are consistent with the requirements for users on the Alaska Intertie,the Alaska Administrative Code provisions regarding engineering standards,electric safety standards,and maintaining adequate operating reserves,®and,as noted above,are presented with this filing as a special contract.The 7 AS 42.05.311(a)("A public utility...shall...permit another public utility to use [the utility's facilities] when the public convenience and necessity require this use and the use will not result in substantial injury to the owner,or in substantial detriment to the service to the customers of the owners.”). 8 3 AAC 52.470(a)-(c)("A utility shall construct,maintain,and operate its plant in accordance with accepted engineering practices;”"A utility shall design,construct,and maintain generation,transmission, and distribution facilities in conformance with the state minimum electrical safety standards as adopted in 7 -Alaska Railbelt Utility Reliability Standards Compact formal adoption of the practices and procedures in the Railbelt Operating and Reliability Standards by the signatories to the Reliability Compact is intended to prevent injury to the Applicants'respective utility facilities and to ensure the provision of safe and reliable electric service to utility customers.9 The Commission may approve this special contract through its plenary authority to regulate the service and safety of utility operations.'°Specifically,the Commission is empowered take actions necessary and proper to ensure reliable and safe utility service,"including requiring reasonable "regulations,practices,and services”for utilities.12 The approval of the Reliability Compact will ensure reliable and safe utility service along the interconnected Alaska Railbelt grid. Public utilities must adhere to the terms of their tariffs,'and are required to file any changes to their tariffs and file any special contracts with Commission,including contracts affecting the provision of utility services.'4 Prior to implementing any changes to the provision of utility service,the utility must provide notice to the Commission and to the public through a tariff filing.15 The filing of special contract is treated as a tariff filing.'®The filing of the Reliability Compact is in accordance with the Commission's regulations governing practices of its regulated utilities. Request for Waiver To the extent that this filing fails to comply with the provisions of 3 AAC 48.390 (a)that require that the contract document must include provisions that the contract "(1)does AS 18.60.580;”and "A utility shall normally maintain generating capacity supplemented by the electric power regularly available from other sources,sufficient to meet all reasonable demands for service and provide a reasonable reserve for emergencies.In addition to any other standards imposed by the commission,non-interconnected utilities shall maintain,at a minimum,adequate reserve capacity to cover the loss of the utility's largest generating unit...”). 9 In the event of failure to agree upon interconnection conditions,the Commission may "prescribe reasonable conditions”for interconnection and joint use,to the extent such interconnection serves the public convenience and necessity.AS 42.05.321(a)(2). 10 AS 42.05.141(a)(1)&(4)("The Regulatory Commission of Alaska may do all things necessary or proper to carry out the purposes and exercise the powers expressly granted or reasonably implied in this chapter,”including "regulate every public utility engaged or proposing to engage in a utility business inside the state,”and "regulate the service and safety of operations of a public utility.”). 1 AS 42.05.141(a)(3)(The Commission may do all things necessary to "make or require reasonable rates,classifications,regulations,practices,services,and facilities for a public utility.”). 12 AS 42.05.291(a)&(c)("Each public utility shall furnish and maintain adequate,efficient,and safe service and facilities.This service shall be reasonably continuous and without unreasonable interruption or delay.”"The commission may upon its own motion or upon complaint,after providing reasonable notice and opportunity for hearing,adopt as to service and facilities,including the crossing of facilities, just and reasonable standards,classifications,regulations,and practices to be furnished,imposed, observed,and followed by public utilities..."). 13 As 42.05.371.("The terms and conditions under which a public utility offers its services and facilities to the public shall be governed strictly by the provisions of its currently effective tariffs.”) 14 AS 42.05.361(a)(every public utility is required to file its tariff with Commission,together with a copy of "every special contract”which in any affects or relates to the utility's "services or facilities'). 18 AS 42.05.41 1(a)("A public utility may not establish or place in effect any new or revised rates,charges, rules,regulations,conditions of service or practices except after 45 days'notice to the commission and 30 days'notice to the public'). 16 3 AAC 48.220(c)("Special contracts are treated as tariff filings.”). 8 -Alaska Railbelt Utility Reliability Standards Compact not take effect without the prior approval of the commission;and (2)is,at all times, subject to revisions by the commission,the Reliability Compact Utilities request that those provisions be waived and that comparable provisions be required of the Reliability Compact Utilities pursuant to Orders of the Commission.The Reliability Compact Utilities request that this procedural waiver be granted in light of the unique circumstances that have led to the development and adoption of the Railbelt Operating and Reliability Standards including the endorsement of,and the public input obtained by AEA. The provisions included in the Railbelt Operating and Reliability Standards promote the safe and reliable delivery of electric service.Moreover,the users of the Alaska Intertie and the Reliability Compact Utilities are currently using these Railbelt Operating and Reliability Standards to operate their respective electric utility facilities and systems. Because the Reliability Compact Utilities intend to file updated tariffs reflecting the Railbelt Operating and Reliability Standards after the Commission approves the form and content of the Railbelt Reliability Standards (and any updates thereto),the Reliability Compact Utilities hereby request a waiver from AS 42.05.411(a)to allow the Reliability Compact Utilities to continue the implementation and use of the Railbelt Operating and Reliability Standards without interruption."” Notices Please provide any notices regarding this filing to: Kirk Gibson McDowell Rackner &Gibson PC 419 SW 11"Avenue,Suite 400 Portland,OR 97205 (T)503/290-3626 (e)Kirk@med-law.com With a copy to: Mr.Bradley W.Evans Chief Executive Officer Chugach Electric Association,Inc. 5601 Electron Drive Anchorage,AK 99519 Mr.Cory Borgeson President and Chief Executive Officer Golden Valley Electric Association,INC. 758 Illinois Avenue Fairbanks,AK 99707 7 AS 42.05.411(a)("The commission,for good cause shown,may allow changes to take effect on less than 45 days'notice to the commission or 30 days'notice to the public under conditions the commission prescribes.”) 9 -Alaska Railbelt Utility Reliability Standards Compact Mr.Joe Griffith General Manager Matanuska Electric Association,Inc. 163 E.Industrial Way Palmer,AK 99645 Mr.Daniel W.Kendall Acting General Manager Municipal Light &Power 1200 East 15!Avenue Anchorage,AK 99501 Commission Approvals Requested Pursuant to 3 AAC 48.390 and 3 AAC 52.470,the Reliability Compact Utilities respectfully request that the RCA exercise the authority granted to it under AS 42.05.321 and to enter an Order: 1.Finding that the approval of Reliability Compact which adopts the Railbelt Operating and Reliability Standards adopted by the IMC for all users of the Alaska Intertie constitute terms of a special contract that will serve the public convenience and necessity; 2.Approving the Railbelt Operating and Reliability Standards and find that they are just and reasonable; 3.Approving the mechanisms and processes for periodic review of the Railbelt Operating and Reliability Standards,as embodied in the Railbelt Operating and Reliability Standards that are adopted by the Reliability Compact;and, 4.Granting any other relief the Commission deems appropriate. Dated this day of January,2014. Respectfully submitted, Kirk Gibson McDowell Rackner &Gibson PC 419 SW 11'*Avenue,Suite 400 Portland,OR 97205 (T)503/290-3626 (e)Kirk@mcd-law.com 10 -Alaska Railbelt Utility Reliability Standards Compact [IMCLetterhead] January XX,2013 DRAFT T.W.Patch,Chairman Regulatory Commission of Alaska 701 West Eighth Avenue,Suite 300 Anchorage,Alaska 99501-3469 RE:The Alaska Intertie -Railbelt Operating and Reliability Standards Dear Chairman Patch: This information filing to the Regulatory Commission of Alaska (Commission)is being submitted by the Intertie Management Committee (IMC)!in order to provide notice to the Commission that the IMC has adopted the attached operating and reliability standards for all users of the Alaska Intertie.2 The IMC is the governing body with the authority to control,operate,maintain,repair,and perform improvements on the Alaska Intertie in accordance with the terms of the Alaska Intertie Agreement.The IMC receives its authority from the provisions of the Alaska Intertie Agreement.? Adoption of the Railbelt Operating and Reliability Standards The Railbelt Operating and Reliability Standards are to be used to govern the activities of all users of the Alaska Intertie.The Railbelt Operating and Reliability Standards were adopted by the IMC after the completion of a public review and comment process that was administered by AEA.The IMC formally adopted the Railbelt Operating and Reliability Standards at its meeting held November 1,2013.4 The Alaska Energy Authority (AEA)and the jurisdictional utilities (Chugach Electric Association,Inc.(CEA), Golden Valley Electric Association,Inc.(GVEA),Matanuska Electric Association,Inc. (MEA),and the Municipality of Anchorage d/b/a/Municipal Light and Power (ML&P) supported the filing of the Railbelt Operating and Reliability Standards with the Commission as part of the IMC Resolution approving the use of the Railbelt Operating and Reliability Standards for the Alaska Intertie. 1 The IMC is comprised of the Alaska Energy Authority,Chugach Electric Association,Inc.,Golden Valley Electric Association,Inc.,Matanuska Electric Association,Inc.,and the Municipality of Anchorage d/b/a/Municipal Light and Power . 2 See Exhibit 1 for a copy of the "Railbelt Operating and Reliability Standards”adopted by the IMC. 3 See Exhibit 2 for a copy of the Amended and Restated Alaska Intertie Agreement dated November 18, 2011. 4 See Exhibit 3 for a copy of IMC Resolution 13-3,dated November 1,2013. 1 -Alaska Intertie:Railbelt Utility Operating and Reliability Standards Background In 1985,the utilities operating systems along the Railbelt and the Alaska Power Authority (APA;now known as the Alaska Energy Authority)entered into the Alaska Intertie Agreement?to set forth the understanding of the parties concerning the construction and operation of the electric transmission facilities connecting the Railbelt Utilities from North central,Alaska to South central,Alaska.This transmission facility is known as the Alaska Intertie. The Original Utility Participants incorporated a separate agreement providing for individual utility reserve capacity and operating reserve responsibilities as an appendix to the Alaska Intertie Agreement.©This Reserve Capacity and Operating Reserve Responsibility agreement was developed by the Original Utility Participants to memorialize the agreed reserve requirement responsibilities for those entities with these operational obligations on the interconnected system (i.e.,not APA/AEA).With one limited exception which will be explained later in this filing,the entire interconnected electric utility system along the Railbelt has been continually operated in accordance with the requirements and responsibilities set forth in the Reserve Capacity and Operating Reserve Responsibility agreement. The Alaska Intertie Agreement established an operating committee,consisting of representatives of APA and the Original Utility Participants,to develop operating procedures and standard practices with respect to all matters affecting the operations of the Alaska Intertie and the Railbelt interconnection.Shortly after the interconnection of the Northern and Southern systems of the Railbelt in 1985,the newly formed Intertie Operating Committee (IOC)reviewed,modified,and adopted the North American Electric Reliability Corporation (NERC)'s "Operating Guides for Interconnected Power Systems”.In 1992,the Alaska Systems Coordinating Councils (ASCC)established Railbelt wide planning criteria and subsumed The "Alaska Intertie Operating Guides” into the Alaska Systems Coordinating Councils "Operating and Planning Guides.” The efforts of both the IOC and later the ASCC began with a review of the current editions of interconnected operating and planning guides.NERC adopted guidelines for the Lower 48 States and controlling entities implemented them on a voluntary basis. However,given the significant technical differences and capability between the large, more robust interconnected utility systems of the Lower 48 States,Canada,and Mexico and the limited interconnected Alaska Railbelt grid,the standards required considerable 5 The utilities initially involved with the Alaska Intertie were:The Municipality of Anchorage,d.b.a. Municipal Light and Power (ML&P);Chugach Electric Association,Inc.(CEA);The City of Fairbanks, Alaska,Municipal Utilities System (FMUS),Golden Valley Electric Association,Inc.(GVEA);and the Alaska Electric Generation and Transmission Cooperative,Inc.(AEGTC)of which Homer Electric Association,Inc.(HEA)and Matanuska Electric Association,Inc.(MEA)were members.The Alaska Power Authority was also a signatory.For convenience,these utilities will be collectively referenced as the "Original Utility Participants'in this filing. 6 See Exhibit 4 for a copy of Addendum No.1 to the Alaska Intertie Agreement,Reserve Capacity and Operating Reserve Responsibility. 2 -Alaska Intertie:Railbelt Utility Operating and Reliability Standards revision and adaptation in order to have the standards fit the needs of the Alaska Railbelt grid. NERC's standards as well as the Railbelt Standards have been under continuous review and development since their inception.Indeed,the entire electric industry has changed significantly in the last thirty (30)years.As an example,the implementation of uniform non-discriminatory open access to the transmission grid required a mandatory approach to reliability because of the multiplication of competing interests over time and the market power of the legacy utilities in the Lower 48 States.In 2006,the Federal Energy Regulatory Commission (FERC)selected NERC as the Electric Reliability Organization for the United States (as well as parts of Canada and Mexico).This particular development spurred significant development and refinement of the various standards governing electric utility operations. AEA gave notice on October 16,2006,that it was terminating the Alaska Intertie Agreement because,among other things,the Alaska Intertie Agreement had no mechanism to fund capital improvements,a number of repairs were needed,and AEA believed that termination was required to improve the power systems serving the interconnected Alaska Railbelt grid.With the imminent termination of the Alaska Intertie Agreement,the upcoming termination of the Tri-partite Agreement',and significant technical efforts about to undertaken to re-integrate the modified Bradley Project into the grid,the utilities operating along the interconnected Alaska Railbelt grid believed a review and update to the standards was necessary.The Railbelt Utility Group?(RUG) directed their respective operations personnel to form an Ad-hoc Railbelt Reliability Committee (RRC)and tasked it with reviewing the most recent version of the NERC's "Reliability Standards for the Bulk Electric Systems of North America”and modifying and/or updating the planning and operating standards used by the utilities operating along the interconnected Alaska Railbelt grid.Formal meetings of the RRC began in the spring of 2007 with the adoption of committee ground rules?. The representatives of the original RRC were"®: Brian Hickey,CEA -Chair Frank Bettine -MEA Bob Day -HEA Henri Dale --GVEA 7 The Tri-partite Agreement references the agreement between CEA,HEA,and MEA concerning the terms and conditions under which CEA was the full requirements supplier of electric power to HEA and MEA. 8 The Railbelt Utility Group is an ad hoc group comprised of the Presidents and General Managers from the six Railbelt Utilities (CEA,GVEA,HEA,MEA,ML&P,and City of Seward). 9 See attached Ground rules at AEA - website:http://www.akenergyauthority.org/RailbeltReliabilityHomePage.html 10 At the direction of MEA management,MEA's representative on the Ad-hoc Railbelt reliability committee was an observing and commenting participant only and was precluded from voting on any specific topics. 3 --Alaska Intertie:Railbelt Utility Operating and Reliability Standards »Jim Strandberg --AEA »Doug Hall -ML&P The RRC,working with representatives of AEA formed committee working rules and open public process for the NERC standards review.Over the following several years the RRC reviewed many pages of NERC standards.The RRC modified the NERC standards for use by the interconnected Alaska Railbelt grid by drawing upon this body of knowledge,the existing Railbelt operating and planning standards,as well as recognizing the current practices of the utilities operating along the interconnected Alaska Railbelt grid.As time passed,the committee has taken on additional reliability- related tasks and consequently increased the importance of the work of the committee. Review and adoption of standards continued to proceed,albeit at slower than anticipated pace. In 2011,the Alaska Intertie Agreement was amended and restated.The Amended and Restated Alaska Intertie Agreement was in many ways similar to the original Alaska Intertie Agreement;however,there were two significant areas of change:1)the inclusion of open access principles that would be used to establish a process for access to the Alaska Intertie for other users than the current legacy utilities;and 2)the signatories to the agreement changed."In addition,the Intertie Management Committee (IMC)became the successor to many of the responsibilities of the IOC under the Amended and Restated Alaska Intertie Agreement. After the RRC had come as far as it felt possible on development of the basic operating and planning standards in 2012,committee members issued a draft of the standards completed "to-date”to the Utility Participants and AEA for comment.It should be noted that the RRC membership had changed considerably;only Bob Day of HEA and Henri Dale of GVEA remained from the original committee.In addition,MEA had become a voting member and HEA declined to sign the Amended and Restated Alaska Intertie Agreement.HEA apparently did not agree with the RRC regarding the appropriate methodology for determining each utility's spinning reserve allocation.HEA's withdrawal from participating is the only difference in the make-up of the Original Utility Participants and the signatories to the Amended and Restated Alaska Intertie Agreement. With the upcoming termination of the Tri-partite agreement,the formation of two new load-balancing authorities (HEA and MEA),open access provisions added in the Amended and Restated Alaska Intertie Agreement ,and HEA's departure from participation in IOC (now IMC)activities,the IMC took on the issue of completing the reliability standards review.12 Brian Hickey (original chair of the RRC)was directed by 11 The Amended and Restated Alaska Intertie Agreement was executed by ML&P,CEA,GVEA,AEGTC, and AEA.The provisions of the Restated Alaska Intertie Agreement accommodated the replacement of AEGTC with its individual members (HEA and MEA)as separate signatories.MEA executed the necessary documents to become part of the Utility Participants involved with the Amended and Restated Alaska Intertie Agreement.HEA did not.While HEA representatives were actively involved in the discussions during the development of the Amended and Restated Alaska Intertie Agreement,HEA chose to not be part or signatory to the Restated Alaska Intertie Agreement. 12 The IMC is effectively the current monitor of reliability issues in and along the Alaska Railbelt grid. 4 -Alaska Intertie:Railbelt Utility Operating and Reliability Standards the IMC to review the work completed by the RRC,propose changes as required,and add any necessary operating standards required for completeness.Mr.Hickey was then to submit the document to both AEA and the IMC for review,comment,and subsequent adoption by the IMC. Mr.Hickey performed the following tasks under the direction of the IMC: e Updated the glossary to the most recent NERC standard with modification to reflect regional Railbelt terminology; e Made editorial corrections to approved standards;clarified the contingency analysis and operations interface portions of the planning standards; e Integrated the committee's working papers on reserves and the existing Exhibit H of the Alaska Intertie Agreement into a single reserve standard, preserving the thirty year old reserve allocation methodology; e Appended the interconnection standards for transmission and generation Updated the under-frequency load shed table with the best information available;and, e And,produced a final draft copy for review by AEA and submission to the 10C. On July 9"2013,the following actions were taken by the IMC: 1.The operating portions of the standards governing all Railbelt facilities of the IMC members were adopted; 2.The reliability standards governing all facilities of the individual IMC's member utilities were adopted; 3.The reliability standards governing the State-owned Alaska Intertie were adopted (with a one-year sunset clause);and, 4.AEA agreed to submit the document for an additional 60-days of public comment The comments received by AEA following the 60-day comment period were then incorporated into the standards.The final version was approved by the IMC,including AEA,on November 1,2013,with the same resolution as set forth in numbered paragraphs Nos.1-4 above." The Operating and Reliability Standards The operating and reliability standards issued by NERC have been reviewed, considered,and modified for use in Alaska so that,to the extent practicable,the best electric utility practices are followed by the users of the Alaska Intertie.The operating and reliability standards represent the establishment of the first set of comprehensive policies and procedures governing operating and reliability standards in Alaska. 13 See IMC Resolution 13-3,dated November 1,2013 attached as Exhibit 3. 5 --Alaska Intertie:Railbelt Utility Operating and Reliability Standards The standards have been developed with the objective of achieving the five (5)following goals: e Toset the minimum requirements for interconnection to the interconnected Alaska Railbelt grid (understanding that the utility at the point of interconnection may have the need for additional or stricter requirements); e Toestablish performance based standards for interconnection to the extent practicable; e To avoid the degradation of the performance or reliability of the interconnected Alaska Railbelt grid by interconnecting entities and standardize the methodology for analyzing whether any degradation would occur by modeling the Railbelt electrical system using boundary dispatch cases against all category B and probable category C contingencies; e To limit the requirement for interconnecting utilities to make system improvements beyond what is necessary to meet the above goal of avoiding system degradation;and, e To establish the requirement that an entity desiring interconnection shall agree to abide by these operating and reliability standards (and all other applicable standards)as a condition for interconnecting onto the interconnected Alaska Railbelt grid. The operating and reliability standards that have been adopted by the IMC are comprised of fourteen (14)standards including: Alaska Standard AKBAL-001-0 -Real Power Balancing Control Performance Alaska Standard AKBAL-002-0 -Disturbance Control Performance Alaska Standard AKBAL-003-0 -Frequency Response and Bias Alaska Standard AKBAL-004-0 -Time Error Correction Alaska Standard AKBAL-005-0 -Automatic Generation Control Alaska Standard AKBAL-006-0 -Inadvertent Interchange Alaska Standard AKFAC-001-0 -Facility Connection Requirements 6 -Alaska Intertie:Railbelt Utility Operating and Reliability Standards Alaska Standard AKFAC-002-0 Coordination of Plans for New Facilities Alaska Standard AKRES-001-0 -Reserve Obligation and Allocation Alaska Standard AKTPL-001-0 -System Performance Under Normal Conditions Alaska Standard AKTPL-002-0 -System Performance Following Loss of a Single BES Element and Likely Subsequent Contingencies Alaska Standard AKTPL-003-0 -System Performance Following Loss of Two or More BES Elements Alaska Standard AKVAR-001-0 -Voltage and Reactive Control Alaska Standard AKVAR-002-0 -Generator Operation for Maintaining Network Voltage Schedules The AKBAL and AKVAR standards govern how balancing authorities'*work with each other.These standards establish the balancing authority's obligation for maintaining reserve requirements. The AKFAC standards govern new construction,maintenance and ratings on a utility's system.These standards contain the interconnection requirements.As noted earlier, these interconnection standards establish minimum requirements for the utilities operating along the interconnected Alaska Railbelt grid and acknowledge that the utility at the point of interconnection may have the need for additional or stricter requirements. The AKRES standard delineates the reserves policy of the utilities operating along the interconnected Alaska Railbelt grid.This standard draws heavily upon Exhibit H to the Amended and Restated Alaska Intertie Agreement.The AKRES standard sets the requirements for the resource adequacy,operating reserves,spinning reserves,and regulating reserves.These standards have some amount of behavior modification built into them in that they have formulas that should incentivize an entity's compliance with the standards in the event of nonperformance.It should be noted that these formulas are for minor infractions,and that for willful infractions further additional and more substantial sanctions may be warranted.Balancing authorities with small units (less than 10 MW)but with non-dispatchable fuel sources may find that they have little to no spin obligation,but will likely have a comparatively larger regulating obligation. 14 Most of the Alaskan utilities are vertically integrated and are each their own balancing authority. 7 -Alaska Intertie:Railbelt Utility Operating and Reliability Standards The AKTPL standards address contingency categorization and utility reporting under normal and emergency conditions. An important component of the Reliability Standards is that they represent a "living”set of standards that will be continually reviewed and modified when appropriate.For example,a significant attack or interruption to critical cyber-asset infrastructure could cause significant electric utility system disruptions,and implementation of open access will require standardizing and memorializing the Available Transfer Capability.The IMC is currently working on "Critical Infrastructure Protection Standards”and Transfer Path Capacity modeling standards to address these issues.The resulting standards will be incorporated into the standards as soon as practicable. Another aspect of the Reliability Standards is that the document does not address every eventuality.A prolonged interruption of the fuel supply to a generating unit is an unlikely, but highly disruptive contingency.For the Anchorage Bowl area,such an event would likely be coincident to a loss of heating fuel as well;an extremely disruptive event with major life safety consequences if such an event would occur in the winter.While not specifically addressed in the Railbelt Operating and Reliability Standards,there is a requirement that each generating entity have contingency plans for loss of the primary fuel supply. Next Step for the Jurisdictional Utilities The jurisdictional utilities (CEA,GVEA,MEA,and ML&P)will be requesting approval of an agreement titled the Alaska Railbelt Utility Reliability Standards Compact as a special contract pursuant to the Alaska Public Utilities Regulatory Act and 3 AAC 48.200 through 3 AAC 48.403 in a separate filing.The Reliability Compact adopts operating and reliability standards for the jurisdictional utilities which are integral part of the interconnected Alaska Railbelt grid. This filing is being made in order that the Commission may be informed regarding the activities of the Alaska Intertie.No specific action is requested.Please do not hesitate to contact me should you have any questions of the IMC or desire further information from the IMC. Sincerely, Bradley W.Evans,Chairman Intertie Management Committee 8 -Alaska Intertie:Railbelt Utility Operating and Reliability Standards IMC Committee and Subcommittee Functional Descriptions Intertie Management Committee (IMC)- As defined in section 8 of the Amended and Restated Alaska Intertie Agreement (ARAIA) Standards Committee- Reports to:The IMC Responsible for developing,updating and maintaining Railbelt reliability and planning standards Intertie Operating Committee- Reports to:The IMC Responsible for duties assigned under section 9 of the ARAIA including managing projects related to the Alaska Intertie.Additionally,the committee is responsible for general operational oversight of Railbelt regional reliability;and,for study and resolution of interconnection issues and supervision of the various iOC subcommittees. Standards Compliance Committee Reports to:The IMC The Standards Compliance committee is responsible for evaluation and reporting to the IMC on interconnected utility compliance with Railbelt reliability operating and planning standards. Tariffs and Regulatory Affairs Committee Reports to:The IMC Responsible for IMC submissions to the Regulatory Commission of Alaska (RCA),and managing the regulatory relationships of the IMC Machine Ratings Subcommittee Reports to:The !OC Responsible for maintaining the database of generator and turbine nameplate data,managing projects related to machine integration into the Railbelt,machine performance testing and data acquisition,and for determination and procedural implementation the Largest Single Generating Contingency for each participant and the Grid as it is defined in and relates to AK RES 001 and Exhibit H of the ARAIA. Operations,Maintenance and Scheduling Subcommittee Reports to:The IOC The Operating Maintenance and Scheduling Subcommittee ofthe IOC is responsible for scheduling of outages for the intertie as well as coordination and updates to the Railbelt-wide Transmission and Generation maintenance schedule.The subcommittee is responsible for oversight of projects related to inspection and repair of the intertie and its related assets. Dispatch and System Operations Subcommittee Reports to:The |OC The Dispatch and System Operations Subcommittee is made up of the Northern and Southern Controllers of the Intertie and the chief dispatchers of the Signatory LBA's.The subcommittee approves the Maintenance subcommittee's proposed annual maintenance related outage schedule.This subcommittee is charged maintaining energy accounting procedures,and for the intertie,oversight of disturbance analysis and reporting,maintaining the Railbelt system disturbance database.The subcommittee also organizes system operator training and control area reviews and develops the prospective annual Intertie usage forecast for use by the budget subcommittee in developing the annual intertie budget. Budget Subcommittee Reports to:The |OC The Budget Subcommittee develops the annual budget for Intertie including funding of special projects outside normal operations the subcommittee also reconcile actual usage to budgeted usage and determines the true-up amounts. Engineering,Relay,and Reliability Subcommittee Reports to:The |OC This committee is charged with oversight of the maintenance and operation of the protective relay systems used on the Intertie,Working in concert with the System Studies Subcommittee this subcommittee directs studies and recommend changes related to system the system from a System Protection perspective.These include under frequency loadshed,interconnection,area out-of step protection and Shed in Lieu of spin (SILOS)systems. System Studies Subcommittee Reports to:The IOC This subcommittee is charged with maintaining the Railbelt PSS/E database and with performing studies in support of analysis of system plans and post event system disturbances analysis. SCADA and Telecommunications subcommittee Reports to:The IOC This committee has oversight over SCADA integration on the Railbelt and operations and maintenance of the telecommunications systems used for protection and SCADA on the Intertie. IMC Committee and Subcommittee Functional Descriptions Intertie Management Committee (IMC)- As defined in section 8 of the Amended and Restated Alaska Intertie Agreement (ARAIA) Standards Committee- Reports to:The IMC Responsible for developing,updating and maintaining Railbelt reliability and planning standards Intertie Operating Committee- Reports to:The IMC Responsible for duties assigned under section 9 of the ARAIA including managing projects related to the Alaska Intertie.Additionally,the committee is responsible for general operational oversight of Railbelt regional reliability;and,for study and resolution of interconnection issues and supervision of the various IOC subcommittees. Standards Compliance Committee Reports to:The IMC The Standards Compliance committee is responsible for evaluation and reporting to the IMC on interconnected utility compliance with Railbelt reliability operating and planning standards. Tariffs and Regulatory Affairs Committee Reports to:The IMC Responsible for IMC submissions to the Regulatory Commission of Alaska (RCA),and managing the regulatory relationships of the IMC Machine Ratings Subcommittee Reports to:The lOC Responsible for maintaining the database of generator and turbine nameplate data,managing projects related to machine integration into the Railbelt,machine performance testing and data acquisition,and for determination and procedural implementation the Largest Single Generating Contingency for each participant and the Grid as it is defined in and relates to AK RES 001 and Exhibit H of the ARAIA. Operations,Maintenance and Scheduling Subcommittee Reports to:The lOC The Operating Maintenance and Scheduling Subcommittee of the IOC is responsible for scheduling of outages for the intertie as well as coordination and updates to the Railbelt-wide Transmission and Generation maintenance schedule.The subcommittee is responsible for oversight of projects related to inspection and repair of the intertie and its related assets. Dispatch and System Operations Subcommittee Reports to:The IOC The Dispatch and System Operations Subcommittee is made up of the Northern and Southern Controllers of the Intertie and the chief dispatchers of the Signatory LBA's.The subcommittee approves the Maintenance subcommittee's proposed annual maintenance related outage schedule.This subcommittee is charged maintaining energy accounting procedures,and for the intertie,oversight of disturbance analysis and reporting,maintaining the Railbelt system disturbance database.The subcommittee also organizes system operator training and control area reviews and develops the prospective annual Intertie usage forecast for use by the budget subcommittee in developing the annual intertie budget. Budget Subcommittee Reports to:The IOC The Budget Subcommittee develops the annual budget for Intertie including funding of special projects outside normal operations the subcommittee also reconcile actual usage to budgeted usage and determines the true-up amounts. Engineering,Relay,and Reliability Subcommittee Reports to:The IOC This committee is charged with oversight of the maintenance and operation of the protective relay systems used on the Intertie,Working in concert with the System Studies Subcommittee this subcommittee directs studies and recommend changes related to system the system from a System Protection perspective.These include under frequency loadshed,interconnection,area out-of step protection and Shed in Lieu of spin (SILOS)systems. System Studies Subcommittee Reports to:The lOC This subcommittee is charged with maintaining the Railbelt PSS/E database and with performing studies in support of analysis of system plans and post event system disturbances analysis. SCADA and Telecommunications subcommittee Reports to:The IOC This committee has oversight over SCADA integration on the Railbelt and operations and maintenance of the telecommunications systems used for protection and SCADA on the Intertie. IMC Committee and Subcommittee Functional Descriptions Intertie Management Committee (IMC)- As defined in section 8 of the Amended and Restated Alaska Intertie Agreement (ARAIA) Standards Committee- Reports to:The IMC Responsible for developing,updating and maintaining Railbelt reliability and planning standards Intertie Operating Committee- Reports to:The IMC Responsible for duties assigned under section 9 of the ARAIA including managing projects related to the Alaska Intertie.Additionally,the committee is responsible for general operational oversight of Railbelt regional reliability;and,for study and resolution of interconnection issues and supervision of the various IOC subcommittees. Standards Compliance Committee Reports to:The IMC The Standards Compliance committee is responsible for evaluation and reporting to the IMC on interconnected utility compliance with Railbelt reliability operating and planning standards. Tariffs and Regulatory Affairs Committee Reports to:The IMC Responsible for IMC submissions to the Regulatory Commission of Alaska (RCA),and managing the regulatory relationships of the IMC Machine Ratings Subcommittee Reports to:The |OC Responsible for maintaining the database of generator and turbine nameplate data,managing projects related to machine integration into the Railbelt,machine performance testing and data acquisition,and for determination and procedural implementation the Largest Single Generating Contingency for each participant and the Grid as it is defined in and relates to AK RES 001 and Exhibit H of the ARAIA. Operations,Maintenance and Scheduling Subcommittee Reports to:The |OC The Operating Maintenance and Scheduling Subcommittee of the IOC is responsible for scheduling of outages for the intertie as well as coordination and updates to the Railbelt-wide Transmission and Generation maintenance schedule.The subcommittee is responsible for oversight of projects related to inspection and repair of the intertie and its related assets. Dispatch and System Operations Subcommittee Reports to:The 10C The Dispatch and System Operations Subcommittee is made up of the Northern and Southern Controllers of the Intertie and the chief dispatchers of the Signatory LBA's.The subcommittee approves the Maintenance subcommittee's proposed annual maintenance related outage schedule.This subcommittee is charged maintaining energy accounting procedures,and for the intertie,oversight of disturbance analysis and reporting,maintaining the Railbelt system disturbance database.The subcommittee also organizes system operator training and control!area reviews and develops the prospective annual intertie usage forecast for use by the budget subcommittee in developing the annual intertie budget. Budget Subcommittee Reports to:The lIOC The Budget Subcommittee develops the annual budget for Intertie including funding of special projects outside normal operations the subcommittee also reconcile actual usage to budgeted usage and determines the true-up amounts. Engineering,Relay,and Reliability Subcommittee Reports to:The |OC This committee is charged with oversight of the maintenance and operation of the protective relay systems used on the Intertie,Working in concert with the System Studies Subcommittee this subcommittee directs studies and recommend changes related to system the system from a System Protection perspective.These include under frequency loadshed,interconnection,area out-of step protection and Shed in Lieu of spin (SILOS)systems. System Studies Subcommittee Reports to:The IOC This subcommittee is charged with maintaining the Railbelt PSS/E database and with performing studies in support of analysis of system plans and post event system disturbances analysis. SCADA and Telecommunications subcommittee Reports to:The |OC This committee has oversight over SCADA integration on the Railbelt and operations and maintenance of the telecommunications systems used for protection and SCADA on the Intertie. IMC Committee and Subcommittee Functional Descriptions Intertie Management Committee (IMC)- As defined in section 8 of the Amended and Restated Alaska Intertie Agreement (ARAIA) Standards Committee- Reports to:The IMC Responsible for developing,updating and maintaining Railbelt reliability and planning standards Intertie Operating Committee- Reports to:The IMC Responsible for duties assigned under section 9 of the ARAIA including managing projects related to the Alaska Intertie.Additionally,the committee is responsible for general operational oversight of Railbelt regional reliability;and,for study and resolution of interconnection issues and supervision of the various IOC subcommittees. Standards Compliance Committee Reports to:The IMC The Standards Compliance committee is responsible for evaluation and reporting to the IMC on interconnected utility compliance with Railbelt reliability operating and planning standards. Tariffs and Regulatory Affairs Committee Reports to:The IMC Responsible for IMC submissions to the Regulatory Commission of Alaska (RCA),and managing the regulatory relationships of the IMC Machine Ratings Subcommittee Reports to:The lOC Responsible for maintaining the database of generator and turbine nameplate data,managing projects related to machine integration into the Railbelt,machine performance testing and data acquisition,and for determination and procedural implementation the Largest Single Generating Contingency for each participant and the Grid as it is defined in and relates to AK RES 001 and Exhibit H of the ARAIA. Operations,Maintenance and Scheduling Subcommittee Reports to:The lOC The Operating Maintenance and Scheduling Subcommittee of the IOC is responsible for scheduling of outages for the intertie as well as coordination and updates to the Railbelt-wide Transmission and Generation maintenance schedule.The subcommittee is responsible for oversight of projects related to inspection and repair of the intertie and its related assets. Dispatch and System Operations Subcommittee Reports to:The lOC The Dispatch and System Operations Subcommittee is made up of the Northern and Southern Controllers of the Intertie and the chief dispatchers of the Signatory LBA's.The subcommittee approves the Maintenance subcommittee's proposed annual maintenance related outage schedule.This subcommittee is charged maintaining energy accounting procedures,and for the intertie,oversight of disturbance analysis and reporting,maintaining the Railbelt system disturbance database.The subcommittee also organizes system operator training and control area reviews and develops the prospective annual Intertie usage forecast for use by the budget subcommittee in developing the annual intertie budget. Budget Subcommittee Reports to:The IOC The Budget Subcommittee develops the annual budget for Intertie including funding of special projects outside normal operations the subcommittee also reconcile actual usage to budgeted usage and determines the true-up amounts. Engineering,Relay,and Reliability Subcommittee Reports to:The IOC This committee is charged with oversight of the maintenance and operation of the protective relay systems used on the Intertie,Working in concert with the System Studies Subcommittee this subcommittee directs studies and recommend changes related to system the system from a System Protection perspective.These include under frequency loadshed,interconnection,area out-of step protection and Shed in Lieu of spin (SILOS)systems. System Studies Subcommittee Reports to:The [OC This subcommittee is charged with maintaining the Railbelt PSS/E database and with performing studies in support of analysis of system plans and post event system disturbances analysis. SCADA and Telecommunications subcommittee Reports to:The |OC This committee has oversight over SCADA integration on the Railbelt and operations and maintenance of the telecommunications systems used for protection and SCADA on the Intertie. Railbelt IMC Organizational Structure Intertie Management Committee (IMC) A c , 'dard - Standards Intertie Operating oan ares Tariffs and Regulatory ;;ompliance ..Committee Committee Commi Affairs Committeeommittee(IOC) a 'a a al . Machine Ratings Operations,Dispatch and Budget Engineering,Rela Subcommittee Maintenance and system Operations Subcoialittee and Reliability Scheduling Subcommittee Subcommittee Subcommittee c . > System Studies SCADA and : .TelecommunicationsSubcommittee;Subcommittee December 18,2013 |sain a "am IMC Operator Report 1/16/14 1.Alaska Intertie Status Report a.1/11/14 at 0805 Healy SVC tripped due to breaker mis-operation. i.1/11/14 at 1114 Intertie de-energized between Douglas and Cantwell. ii.1/11/14 at 2048 Healy SVC online,Tie closed. b.1/14/14 at 2034 Intertie tripped between Douglas and Healy. i.1/15/14 MEA crews patrolled Tie,no problems found. ii.1/15/14 at 1316 Tie closed. c.Usage Month to date 23,400 MWH. 2.Alaska Intertie SVC update a.Teeland SVC online 12/6/13 and operating well. i.Minor punch list items. b.Gold Hill tentative outage schedule i.5/21/14 thru 6/6/14,35 days. c.Healy SVC outage schedule i.7/22/14 thru 8/11/14,21 days. 3.System operation a.Spinning Reserves i.Beginning January 1,2014 HEA stated Spinning Reserve Obligation (SRO) contribution is equal to 10%of the largest on line units rated capacity. b.Based on the current Railbelt SRO methodology identified in the Railbelt Operating and Reliability Standards,Appendix |,Reserve Obligation and Allocation.ML&P,CEA and GVEA are required to make the Reserve Sharing pool whole by providing the additional spin necessary to cover the largest unit contingency on line in the grid. c.Each Load Balancing authority should make available their SRO as well as their actual hourly spinning reserve. 4.Compliance Reporting a.Need to develop methods and structure for Compliance Reporting. 5.Correspondence a.Ft.Knox Gold Mine is requesting recent data indicating hourly loading on the Alaska Intertie line segment. requests should go dhru THC secretary and then Given +o Broup.Le Show repond, ENTRY IN GREEN BOXES ONLY ML&P CEA GVEA MEA HEA Actual HEA UNIT our SPIN USE BIG UNIT TOOL39BELOWFORMLP 107|37 65 23 0 0 MAKE #10% OF BIGGEST3211UNIT 70 NO ENTRY REQUIRED UNIT SPIN 110 34 107 33 65 20 0 0 70 22 WHAT IT SHOULD BE January 15,2014 Mr.Brad Evans Chugach Electric Association PO Box 196300 Anchorage,AK 99519-6300 Mr.Joe Griffith Matanuska Electric Association PO Box 2929 Palmer,AK 99645 Mr.Dan Kendall ML&P 1200 E.First Avenue Anchorage,AK 99501 Gentlemen: 'Golden:Valley Electric AssociationPOBox71249,Fairbanks,AK 99707-1249 *(907)452-1151 ©www.gvea.com Your Touchstone Energy*Cooperative BP, Mr.Kirk Gibson McDowell,Rackner &Gibson,PC 419 SW 11"Avenue,Suite 400 Portland,OR 97205 Mr.Gene Therriault Deputy Director-Statewide Energy Policy Development813W.Northern Lights Blvd. Anchorage,AK 99503 Both Allen Gray and |are unable to attend the IMC Meeting on Thursday,January 16,2014. |am designating Dan Bishop to serve as GVEA's representative at that meeting. Sincerely, =BR.Barges Cory R.Borgeson President &CEO