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Home My WebLink AboutIntertie Managment Commitee Meetings 05-23-2013 2Alaska Intertie Management Committee DRAFT MEETING MINUTES Thursday,September 13,2012 Anchorage,Alaska 1.CALL TO ORDER Chair Brad Evans called the meeting of the Alaska Intertie Management Committee to order on September 13,2012 at 1:03 p.m.A quorum was established. 2.ROLL CALL Members present:Brad Evans (Chugach Electric);Gene Therriault (AEA);Jim Posey (AML&P);Henri Dale (GVEA)and Joe Griffith (MEA). 3.PUBLIC ROLL CALL Public present in Anchorage:Kirk Warren and May Clark (AEA);Louis Agi and Jeff Warner (AML&P);Brian Bjorkquist (AGO);Brian Hickey (CEA);Gary Kuhn (MEA-phone);Kirk Gibson (MR&G-phone);Bernie Smith (RCA);and Sunny Morrison (Accu-Type Depositions). 4.PUBLIC COMMENT There was no public comment. 5.AGENDA COMMENTS/MOTION FOR APPROVAL MOTION:Mr.Griffith made a motion to approve the agenda.Motion seconded by Mr. Dale.The motion was approved unanimously. 6.APPROVAL OF PRIOR MEETING MINUTES -June 20,2012 and August 16, 2012 The June 20,2012 and August 16,2012 minutes were approved as amended. 7.NEW BUSINESS 7A.Formation of Railbelt Reliability Council (RRC) Chair Evans stated there were two assignments related to this topic.The first assignment was the counsel for the interested parties were going to review formation of a reliability council.The second assignment was to the technical group regarding structure formation of the reliability council. AIMC Draft Meeting Minutes-Sep 13 2012 Page 1 of 4 Mr.Gibson said a review of the RCA authority has begun and the analysis is not completely done,but it appears they have the authority to go forward in this area.He stated that for the purpose of the council,a non-profit corporation could be structured or an informal committee. Mr.Agi requested Mr.Gibson provide any documents he has regarding the current findings. Chair Evans stated he is supportive of a council formation and not a legal corporation entity at this time.Chair Evans said he would like to keep the structure administratively light and have a council formed by agreement with a membership component. €2 Mr.Agi stated there is some delicacy involved in creating this council.Mr.Griffith stated thestructurecouldbeordainedwithresolutionsfromthevariousparticipatingentities.Chair EvansrecommendedcreatingavoluntaryorganizationwithacommonpurposeandmissiontocreatereliabilitystandardsforallusersoftheinterconnectedSystem.It would have 'an openmembershipwithcertaincriteria.: Mr.Posey,Mr.Griffith,Mr.Dale and Mr.Therriault all agrced tto 'the council being iinformal.Mr.Bjorkquist asked if AEA would be part of this newcouncil.Chair 'Evans said membershipisusuallydefinedbyhavinganownershipoftheasset.Chair Evans,stated AEAis a significantassetownerintheinterconnectedsystem.i fooN, Mr.Therriault said the intent of the counéilis to make recommendations.Chair Evans stated theintentofthecouncilistoformulatetheruleswhichgovernthereliabilitystandardthateverybodyhastomeet.He said this group would be an independent body that would structure activitiesneededtoachievereliability.é Mr.Dale stated even though Alaska is outside of FERC,reliability standards may still have to be established.-Chair Evans stated he would rather bein charge of designing Alaska's rules thanhavingtofollowoutsider's standards.'' Mr.Griffith asked if the RRC should be adopted.Chair Evans said when the group is formed,assignments will be given to review planning and reliability criteria to make sure they are current and then changes can be considered.Chair Evans stated the new council will be separate fromtheIMCandwillcreateuniformreliabilitystandardsforeverybodythroughouttheregion.He said the IMC is an asset management group that would continue to adopt the reliability standardsrecommendedbythenewcouncil.Mr.Posey,Mr.Dale and Therriault were in agreement withChairEvans.< Chair Evans commented on the second assignment to the technical group regarding structure of the formation of the reliability council.He apologized for Chugach being busy and stated they are behind on this assignment and are not ready for the meeting.Chair Evans asked if there was any more discussion on the formation of the reliability council for the Railbelt. AIMC Draft Meeting Minutes-Sep 13 2012 Page 2 of 4 Mr.Agi agreed to follow up and make recommendations by the end of October or November. Chair Evans said this issue needs to keep moving because there is a sense of urgency regarding people operating that aren't signed up for any interconnected operating reliability standards. 7B.Discussion of RITC System Chair Evans stated the name Railbelt Interconnected Transmission Corridor is being used loosely and can be changed if someone suggests a better acronym or description.Chair Evans requested comments from the Committee regarding this issue.Mr.Griffith suggested putting a clear definition on paper for Committee comment.'7 Chair Evans asked Mr.Agi about the issue of Addendum A and whether or not that was an independent agreement from which entities could not amend their structures and withdraw their membership.Mr.Agi stated the issue remains to be resolved.Chair Evans asked for the indulgence of the state to engage in these matters in this meeting because it is relevant.Chair Evans stated this will not be an IMC matter ultimately,but is currently anissue.- Mr.Bjorkquist stated this matter is a utility issue and is not part of Addendum A.He said the issue can be addressed at this meeting even thought the state will not participate. . .4ChairEvanssaidheleftofftheopenaccessassignmentthatwastogotothe technical group first and then to the legal group.Mr.Dale stated there has been some review of the existing FERC language.He said there are a lot of diametrically opposed areas in terms of what Alaska does and what FERC does,including handling risk and prioritizing reservations. Chair Evans suggested there would be a benefit of Mr.Dale identifying the problematic areas and having a work session to address those.Mr.,Posey and Mr.Griffith agreed with Chair Evans.": Chair Evans asked Mr.Bjorkquist if he was comfortable with the sense of direction the Committee is going with this issue.Mr.Bjorkquist stated he is comfortable with the approach and knows that Gene Therriault and Kirk Warren will want to get involved with the details going forward. Chair Evans stated there are big misunderstandings among companies about what it means to plug into a grid which need to be addressed.Mr.Therriault said he hoped his involvement and increased understanding of the proposals will assist in clear communication to the members. é 7C.Review of Mutual Aid Agreements Chair Evans said the Committee is not called upon often to engage in mutual aid.He said the limits of the infrastructure are being tested about once every 10 years.Chair Evans suggested an operating group review the mutual aid agreements.Mr.Dale stated there were a lot of people in his organization who weren't familiar with the agreements. AIMC Draft Meeting Minutes-Sep 13 2012 Page 3 of 4 Chair Evans thanked everyone who helped with the recent mutual aid,including inventory resources.He recommended annual training on mutual aid.Mr.Posey believed all of the agreements have expired.He suggested prioritizing this issue and having a tabletop after the winter season to discuss this. Chair Evans suggested a report be made to the Committee regarding lessons learned on the recent mutual aid issue and suggested modifying the agreements based on that.He suggested developing an annual mutual aid tabletop in August or at least before the winter season.Chair Evans suggested addressing inventory,logistics and other helpful issues.He suggested discussion and recommendations for employing people from outside of the road system.Chair Evans commented a long-range issue would be determining where to go if we had to go out of the state. Mr.Griffith asked who was assigned to the above tasks.Chair Evans said he wants the operators to take the first tasks.Mr.Griffith suggested assigning a chairman for the tasks.Chair Evans said if nobody minds,he will assign Burke Wick the chairman duties. Chair Evans stated another area to look at is what we can do to help each other in communications.It is not rational to be able to staff up to answer thousands of calls per hour. He suggested having people come in and help take outage call activity.Mr.Griffith also suggested talking to the telephone company about their batteries failing. 8.OLD BUSINESS 8A.Resolution No.2012-01,Spinning Reserve MOTION:Mr.Griffith made a motion to move Resolution No.2012-01 off the table. Motion seconded by Mr.Posey.The motion was approved unanimously. MOTION:Mr.Griffith made a motion to adopt Resolution No.2012-01 as amended. Motion seconded by Mr.Posey.Following a roll call vote,the motion was approved unanimously. 9.NEXT MEETING DATE The next meeting date is at the discretion of the Chair. 10.ADJOURNMENT There being no further business of the AIMC,the meeting adjourned at 1:54 p.m. Bradley Evans,Chairman Gene Therriault,Secretary AIMC Draft Meeting Minutes-Sep 13 2012 Page 4 of 4 Alaska Intertie FY14 Budget REVENUES GVEA MISC Revenue-Reliability Standards INTEREST EXPENSES FERC 562 -Station Operation Expenses GVEA -Substation Electricity Usage FERC 566 -Miscellaneous Transmission Expense SCADA &Voice Circuits (SOA) Private Line Telephone Service for AKI SCADA (GVEA) ANC-FAI {OC Communication Link (CEA) Celt Phone Comm.Svc for Weather Monitoring (ATT) SLMS -Support ContracyBattery Changeout (08-007-EPS!) intertie Ground Safety Patro!-(08-007-HDR) _Mise Studies as needed (Cyber Study)Misc Studies as needed (Eva Creek Stability Study) ory FERC 567 -Transmission Expenses -Rents Rents -Alaska Railroad ;MEA -Talkeetna Storage ||. PSSE key replacement FERC 570-Maintenance of Station EquipmentGVEA-Healy Cantwell,GoldhillGVEA-SCADA Mantensnes Healy,Cantwell,Gold HilGVEA-Healy SVC Maintenance (570270)GVEA -Gold Hill SVC Maintenance (570240) GVEA-Cantwell Batteries-New ChargerGVEA-Cantwell Substation FenceGVEA-Standby Generator Set Standardization at cwsers _GVEA-Replace Protective Relay Schemes Healy aan MEA- Replace Protective Relay Schemes Dougias -GVEA -CantwellRepair4S2Switch GVEA -Mobile Substation Access GVEA-RPY replacement-Cantwell GVEA -R Control Rep _:.,GVEA -Trensformer Protection Upgrades eles CEA-Teeland Substation .MEA -Douglas Substation =.” FERC 571 -Maintenance of Overhead Lines GVEA-Northern MaintenanceGVEA-Northem ROW ClearingGVEA-Landing Pads "GVEA -Re-level Structures &Adjust Guys GVEA -Repair Tower 692 MEA -Special Patrols {Incl Foundation Inspections]MEA-Southem Maint (Incl Ground inspect)MEA-Southern ROW Clearing Talkeetna NorthMEA-ContingencyMEA-TWR 195 Repair Monitoring FERC 920 -AEA Administrative Costs Personal Services,Travel and Other Costs FERC 920 -IMC Administrative Costs IMC Administrative Costs (Audit,meetings,jegal) FERC 924 -Property insurance AK intertie -Insurance (Insurance Risk Assessment TOTAL EXPENSE SURPLUS (SHORTAGE) TOTAL REVENUES Approved ProposedFY12FY13ACTUALSFy14 Actual Budget @ ysis Budget FY 14 Notes 1,936,356 2,087,520 1,208,827.00 1,888,380$4,461 $6,134 66,134.00 50,09676,240 78,967 75,268.00 69,62067,368 -- 682 44,679 46,845.60 41,331 65,317 268 48.89 2,190,688 2,277,300]1,385,141.49 2,049,427 7,658 6,000 6,465.72 7,000 |Per GVEA7,658 €,000 6,465.72 7,000 234,208 75,000 .-Per AEA28,587 55,000 18,694.19 106,000 |Per GvEA9,881 :°- 11,856 20,000 9,163.26 15,000 |Per AEA7.94,704 60,000 16,068.74 60,000 |Per AEA 37,710 40,000 4,138.77 40,000 |Per AEAtout60,000 "428.00 50,000 180,000 393,607 300,000 61,290.96 451,000 400 400 .400]Fued 7,200 ”7,200 4,600.00 7,200 Fixed ::-1,000 |Per NLP7,600 7,600 4,800.00 8,600 57,606 92,000 86,401.63 65,000 |Par GVEA 22,839 °: 6,928 : .i4,940 :. 259,102 ::; -35,000 °.Por GVEA $5,700 25,000 oe TO Per GVEA42,636 308,000 .330,000 {=Per MEA7”60,000 ..Per GVEA 250,000 .250,000 |Per GVEA48,000 ."*48,000 {Per GVEA80,000 .80,000 |Per GVEA ._.,$6,000 .35,000 |=Per GVEA62,000 61,843.31 .Per CEA 10,202 8.000 76 45 17,200 |Par MEA451,493 987,000 436,321.30 822,200 95,538 182,000 60,424.00 153,000 |Per GVEA boa Pe 200,000 ; 7 «Per GVEA °50,000 :60,000 |Per GVEA125,564 26,000 .26,000]Per GVEA :20,000 .20,000 |Per GVEA -20,000 53,226.84 16,000 |Per MEA68,476 70,000 30,750.99 70,000 |Per MEA2,638 20,000 :28,000 |Per MEA °40,000 :20,000 |Per MEA ..:10,000]Per LP 312,217 698,000 13,400.83 389,000 55,099 60,000 24,075.05 50,000 |Per AEA65,089 60,000 24,075.06 60,000 500,392 16,592.65 34,000 FY 14 Inchide audit contract approx.$14,000600,382 16,692.66 34,000 28,048 120,000 140,007.31 145,000 |incl.aviation Insurance Per AEA -$0,000 .*Per AEA28,048 170,000 440,007.31 146,000 1,766,012 2,118,600 $34,953.91 1,906 800 424,677 158,700 850,187.68 142,627 ALASKA INTERTIE FISCAL YEAR 2014 ENERGY PROJECTION GVEA MEA CEA |ML&P TOTAL CAPACITY CASH FLOW MONTH MWH MWH |MWH]MWH]|MWH GVEA [CEA |MEA GVEA |MEA [ML&P [CEA TOTALS Jul 33,000 0 Qa 0 33,000 $104,610 $0 $0 $157,560 $40,380 $50,096 $67,084 $419,730 Aug 34,000 0 0 0 34,000 $107,780 $0 $0 $107,780 Sep 40,000 0 0 0 40,000 $126,800 $0 $0 $126,800 Oct 48,000 0 0 0 48,000 $152,160 $0 $0 $152,160 Nov 51,000 400}200 it)51,300 $161,670 $634 $317 $162,621 Dec 54,000 100}200 0 54,300 $171,180 $634 $317 $172,131 Jan 55,000 100)200 0 55,300 $174,350 $634 $317 $175,301 Feb 48,000 oO}200 0 48,200 $152,160 $634 $0 $152,794 Mar 52,000 0 0 0 52,000 $164,840 $0 $0 $164,840 Apr 43,000 0 0 0 43,000 $136,310 $0 $0 $136,310 May 48,000 0 0 0 48,000 $152,160 $0 $0 $152,160 Jun 40,000 0 ()0 40,000 $126,800 $0 $0 $126,800 TOTAL 546,000 300 800 QO 547,100 $1,730,820 $2,536 $951 $157,560 $40,380 $50,096 $67,084 $2,049,427 T.Energy:$1,734,307 T.Cap:$315,120 $2,049,427 TOTAL INTERTIE PROJECTED ENERGY USAGE 547,100 MWH TOTAL MWH REVENUE $2,049,427 Usage estimate reduced by 1/12 of Total for rate calculations 501,508 MWH O&M BUDGET $1,906,800 Section 7.2.2 MINIMUM USEAGE CONTRACT VALUE 204,984 MWH DIFFERENCE $142,627 UTILITY FY 14 MEA 25.63%19.99 MW ML&P 31.79%24.80 MW CEA 42.58%33.21 MW GVEA 100.00%78.00 MW 156.0 Usage Rate per KWH $0.00317 Capacity Rate $2.02 SOUTHERN LITY PARTICIPANTS (M ML&P CEA MEA TOTAL NORTHERN,UTILITY PARTICIPANTS (MW) GVEA TOTAL MITCR DETERMINATION MEA 25.63% ML&P 31.78% CEA 42.58% GVEA 100.00% Annual System Demand MINIMUM INTERTIE TRANSFER CAPABILITY RIGHTS AMENDED (MITCR)DETERMINATION FOR FISCAL YEAR 2014 1011 1112 1213 3 YR AVG. 177.0 180.0 172.0 176.3 MW 242.2 237.8 228.25 236.1 MW 137.2 141.3 1478 142.1 MW USAGE BUDGET MITCR 554.5 MW ENERGY (A) CAPACITY (B) 211.5 212.4 2176 213.8 MW 213.8 MW 33.50 MW of GVEA peak are non-firm FY 14 KWHeee 19.99 MW 19,990 24.80 MW 24,800 33.21 MW 33,210 78.00 MW 78,000 156.00 MW 156,000 {A)See Section 7.2.5 AK Intertie Agreement (B)See Section 7.2.6 AK Intertie Agreement DRAFT APPROVED APPROVED APPROVED APPROVED APPROVED4/10/2013 4124/2012 4142012 4/15/2010 4/16/2008 4/17/2008 UNITS FY14 FY13 FY12 FY11 FY10 FY09 KWH 501,508,000 384,175,000 452,008,000 190,942,000 300,025,000 481,525,000 $1,906,800 2,118,600 2,368,109 3,069,386 2,760,344 2,526,817 KW 156,000 156,000 140,000 140,000 140,000 140,000 $.000/KWH $0.00317 $0.00460 $0.00437 $0.01342 $0.00768 $0.00438 KW $2.02 $2.24 $2.79 $3.62 $3.25 $2.98 CAP RATE CAP CHARGES$2.02 40,379.80 $2.02 50,096.00 $2.02 67,084.20 $2.02 157,560.00 315,120.00_-__se