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HomeMy WebLinkAboutIntertie Managment Commitee Meetings 08-27-2013 3Alaska Intertie Management Committee DRAFT MEETING MINUTES e Tuesday,July 9,2013 Anchorage,Alaska 1.CALL TO ORDER Chair Brad Evans called the meeting of the Alaska Intertie Management Committee to order on July 9,2013 at 9:40 am.A quorum was established. 2.ROLL CALL Members present:Brad Evans (Chugach Electric);Jim Posey -Anchorage Municipal Light & Power (AML&P);Joe Griffith -Matanuska Electric Association (MEA);Cory Borgenson - Golden Valley Electric Association (GVEA);and Gene Therriault -Alaska Energy Authority (AEA). 3.PUBLIC ROLL CALL Public present in Anchorage:Louis Agi (AML&P);Burke Wick,Brian Hickey (Chugach Electric);Ashish Agrawal (Army);Denali Daniels (MEA);Don Zoerb (MEA);Bernie Smith - Regulatory Commission of Alaska (RCA);Henry Dale (AEA consultant);Brian Bjorkquist (Department of Law);Kirk Gibson (McDowell Rackner &Gibson PC);Krin Kemppainen (AIDEA);and Sunny Morrison (Accu-Type Depositions). 4.PUBLIC COMMENT There was no public comment. 5.AGENDA COMMENTS/MOTION FOR APPROVAL Mr.Griffith asked to table item 8D. MOTION:Mr.Borgenson made a motion to approve the agenda as amended.Motion seconded by Mr.Therriault.The motion was approved unanimously. 6.APPROVAL OF PRIOR MEETING MINUTES -May 23,2013;June 11,2013 MOTION:Mr.Griffith made a motion to approve the minutes of May 23,2013,and June 11,2013 as amended.Motion seconded by Mr.Borgenson.The motion was approved unanimously. 7.UNFINISHED BUSINESS AIMC Draft Meeting Minutes-July 9,2013 Page 1 of 6 7A.Railbelt Reliability and Reserves Criteria Discussion (Action Item) Mr.Borgenson requested a summary of the standards that are currently under consideration.Mr. Hickey explained during the 2007 to 2009 timeframe the Railbelt Utility Group (RUG),directed the formation of the Railbelt Reliability Council (RRC).Mr.Hickey was initially the Chairman. When Mr.Hickey left the Council,Mr.Dale became Chairman.The NERC standards were edited to adjust them to the railbelt and that process continued under Chair Dale.The very detailed interconnection standards,primarily distribution interconnection standards,developed by Golden Valley,Chugach and ML&P were redrafted to apply to the transmission system.Mr. Hickey took the standards approved by the Committee,went through the project schedule and selected the key standards that needed to be included. No VAR standards have been approved by the RRC.Mr.Hickey included the VAR standards in this resolution.The language was adjusted in the transmission planning standards to reflect having the option of studying the faults from the faults tables.The recommended standards were brought forth at the June 7th meeting and subsequently reformatted by Mr.Griffith. There is a requirement to perform a set of studies every two years,which will be the burden of the utilities.The end user interconnection standard is not included in this update.It will have to be addressed at a later date.Mr.Hickey noted this is an ongoing process and recommends studying the new system regularly for a few years in order to understand how it operates.Mr. Hickey reviewed the documents in detail and believes the technical tracking capability is adequate.Mr.Posey commented there will be more stability beginning in 2016 and beyond. Mr.Hickey reviewed the comments made by Mr.Dale and stated that none of the comments were controversial.He recommended modifying and reaching consensus regarding the comments. Mr.Borgenson stated he is ready to vote in favor and adopt the proposed standards,which apply to the Alaska Intertie.He suggested the utilities have the discussion of adopting standards that would apply to all of the interties in the system for anyone who wants to connect.Mr.Griffith agreed the standards should be adopted.He expressed concern that the dates on the resolution do not reflect the revisions. Mr.Therriault commented the state is not prepared to vote in favor of adoption at this point.He advised being cautious and fully understanding any potential unintended consequences,as well as addressing the technical fixes. MOTION:Mr.Borgenson made a motion to approve the Railbelt Reliability and Reserves Criteria Resolution 13-1.Motion seconded by Mr.Hickey.Roll call was taken,with Mr. Therriault voting against.The motion does not carry for the Alaska Intertie System.The motion carries for all other systems. Mr.Bjorkquist stated under Section 3.1 of the Alaska Intertie Agreement,the affirmative vote of the Alaska Energy Authority is necessary for the reliability standards,but is not necessary for the AIMC Draft Meeting Minutes-July 9,2013 Page 2 of 6 operating standards.He said it is beyond his capability at this meeting to separate those standards in the document.Chair Evans advised he will assign someone to separate those out for clarity for anew motion.Mr.Hickey commented there is no term of art "operating standards"or "reliability standards."Mr.Griffith stated operating standards and reliability standards are the same thing.Chair Evans said operating standards and reliability standards are one and the same. Mr.Griffith commented the reliability standards have not been adopted for the Alaska Intertie, but have been adopted for all the other systems.Mr.Griffith noted that is the first time AEA has ever vetoed anything regarding the intertie operation. Mr.Griffith requested clarity on the effects of AEA's veto of the reliability and operating standards regarding MEA's leg from Teeland to Willow.Mr.Bjorkquist explained that part of the original Alaska intertie is being operated under the Regulatory Commission of Alaska joint use and interconnection order,except for a five-mile stretch that is subject to a lease.Mr. Griffith asked if he can now accept the new reliability and operating criteria on MEA's segment. Mr.Bjorkquist believed that is correct. MOTION:Mr.Therriault made a motion to approve Resolution 13-2 with the sunset date of July 9,2014.Motion seconded by Mr.Posey.The motion carries unanimously. Chair Evans recommended the sunset date be at least a year.He inquired about the process of eliminating the sunset date.Mr.Bjorkquist stated another motion could extend the sunset or adopt it permanently.Chair Evans said the goal is to remove the sunset,not extend it.Mr. Therriault expressed the state's intent is to allow the sunset to be in place,but to fully understand the implications because it preserves the state's right to vote.Mr.Therriault stated we can continue to move forward,but can be cautious as we move forward.He commented a six-month sunset date would also provide an impetus for the Legislature to determine if there needs to be statutory change,legislation,regarding the enforcement provisions on the broader system. Mr.Borgenson inquired about AEA's plan to work on these standards.Mr.Therriault stated AEA would devote time to work with the designee from the utilities to determine any technical clarifications.Mr.Borgenson requested a list of AEA team members.Mr.Therriault noted Kirk Warren and Mr.Dale.Mr.Borgenson asked who is paying for Mr.Dale's work.Mr.Therriault said AEA is paying for Mr.Dale's work on the reliability issues.Mr.Dale stated his work with the other utilities is not on reliability issues.He is only working on reliability issues with AEA. Mr.Borgenson requested further explanation on AEA's plan,so the same problem does not reoccur in six months.He commented the state submitted these comments after 5:00 p.m.last night,even though they have known since June 9th that these rules were going to be adopted at this meeting.He stated it is unacceptable activity by AEA to present this way.Mr.Griffith concurred with Mr.Borgenson's statement.Mr.Therriault stated again that AEA will work with the designee or designees from the utilities. Mr.Borgenson made a friendly amendment extending the sunset date to January 7,2015. Mr.Therriault stated Ms.Fisher-Goad was concerned with the length of time of the sunset, particularly if technical problems occur and recommended the sunset date be July 9,2014.Mr. Borgenson agreed to the date and commented the rules need to be in place for open access. AIMC Draft Meeting Minutes-July 9,2013 Page 3 of 6 Chair Evans stated it is his responsibility as task manager to ensure people are meeting regularly and producing results. Mr.Griffith commented he received the state's information at 9:00 p.m.last night and encouraged the state to distribute their information in a timely manner.He requested clarification from the state regarding the sentence stating the purpose of the resolution is to be a "guideline for the IMC working with other interested parties to establish and implement railbelt- wide policies,criterion and standards related to reserve capacity,operating reserves,operating policies,reliability and enforcement mechanisms."Mr.Griffith asked if this is something other than an established criteria like Resolution 13-1." Mr.Bjorkquist expressed his understanding was the IMC was adopting railbelt-wide standards that the IMC would export to the railbelt,as opposed to the IMC adopting standards for theintertieitself.Mr.Bjorkquist stated IMC's jurisdiction and authority respects the intertie.It doesnotgobeyondtheintertietotherestoftherailbelt.Mr.Griffith stated he believes IMC's jurisdiction goes beyond the intertie to the rest of the railbelt.Chair Evans stated there may be adifferenceofopinion.Mr.Bjorkquist commented this is one of the issues where the standardsneedclarificationanditmaybejustamatterofsemantics.The intent was the IMC would work with others within the railbelt to adopt the same standards so that railbelt-wide,there was auniformsetofstandardsthattheintertieisalsosubjectto,rather than the IMCimposingstandardsontherestoftherailbelt. Mr.Griffith believed the intent of the IMC document was a railbelt-wide transmission guidelineforallpowertransfersandoperationoftheintertiesystem."He requested clarification.Mr.Gibson stated the IMC has the authority over the access of the intertie.Chair Evans statedparticipantsandusersoftheintertiearesubjecttctotheserules.Mr.Borgenson inquired about the reasons the state requires a sunset date.Mr.BjorkquistcommentedthehistoryofworkingonsomeoftheseissuesthatareconnectedtotheAlaskaIntertieAgreementincludes,in some circumstances,AEA's only ability to compel necessarychangesisthroughtheterminationprocess.The idea of the sunset is to have a shorter timeframetobeabletomoveforwardinacautious,but expeditious fashion.Mr.Borgenson asked whatrolehasAEAplayedinworkingonthesestandards.Mr.Bjorkquist stated AEA has worked withtheRRCastheyhavedevelopedthestandards.Mr.Griffith requested he read into the record the "be it resolves”from Resolution 13-2 so it is clear what they say;"Be it resolved that the Intertie Management Committee's railbelt operating and reliability standards updated June 7,2013 prepared by the RRC,Railbelt Reliability Council, is hereby accepted as the reserve capacity and operating reserves for the intertie,Exhibit H of the amended and restated Alaska Intertie Agreement,and is accepted as the operating policies and procedures,reliability standards and enforcement mechanisms for the intertie with the two modifications that follow."One of those modifications is the sunset date and the other is to end the sanctions. Chair Evans suggested the wording of Resolution 13-2 should read "for the intertie and its participants"in any place it reads "for the intertie,"because it is for the participants'systems that AIMC Draft Meeting Minutes-July 9,2013 Page 4 of 6 are connected to the intertie.Mr.Bjorkquist stated Section 3.1 of the Alaska Intertie Agreement provides they are adopted for the intertie and that is the language that was used in the resolution. The implication is that it is for the participants,but it is tracking the Section 3.1 language.Mr. Gibson noted 3.1 states "all participants and users shall be obligated to comply with all operating policies and procedures and reliability standards adopted by the IMC." Mr.Griffith asked if these policies and procedures are binding for anybody delivering Bradley Lake power.Mr.Dale stated the Bradley Lake agreements present a legal question and not an engineering question.Chair Evans asked if a user/participant of the intertie has a transaction with a non-user/non-participant of the intertie,does that transaction then bind them to these rules. Mr.Hickey noted the interconnection standards do state that."Mr.Dale advised for that type of a scenario,the balancing authority has the option to either require the connected entity to carry the rules or the balancing authority to absorb the obligations for the connected entity.Mr. Bjorkquist advised thatis consistent with Section 3.3 of the agreement.Mr.Therriault asked if Mr.Hickey would be the point person for the utilities regarding Resolution 13-2.Chair Evans stated Mr.Hickeyis the point person for Chugach and he is assigned the task of pulling everybody together and resolving ththe technical fixes.Chair EvanscommenteditisopentoallParticipants,NO eo Mr.Borgenson commented there was an opportunity here today for the railbelt utilities to adoptreliabilitystandardsfortheintertieandthestaterefusedtocooperate.He cautioned that the utilities may not bein agreement when the state comes back at a later date. 8.|NEWBUSINESS .. 8A.None "oY &St on So UKnaeae8B.Election of Officers -Chairman and ViceChairmanMOTION:Mr.Griffith made :a1 motion to reelect the current officers.Motion seconded byMr.Posey..The motion was approved unanimously.8C.Review Draft of Open 'Access DocumentMr.Hickey provided a brief description of the open access document.In the effort to be consistent in drafting this document,he reviewed the FERC open access pro forma tariff, Chugach's open access documents and Golden Valley's open access documents.He stated in an open access tariff,there has to be someone in charge.IMC will be in charge,unless the IMC is the transmission provider.In that event,an arbiter,which he recommends be the executive director of AEA,would negotiate with the IMC to resolve any disputes.This issue needs further discussion by the Committee. Mr.Hickey explained in these open access rules,he used the NERC standards and the FERC rules as guidelines for creating the Alaska standards.The rated path methodology was used in calculating the available transfer capability.Currently,when this calculation is performed,the AIMC Draft Meeting Minutes-July 9,2013 Page 5 of6 intertie is oversubscribed for many hours of the day.During the time when the intertie is not oversubscribed,which is approximately half of the time,the rules would require the owners of the preexisting rights to post the capacity back to the controllers,which could be used by a third- party.Mr.Hickey stated there is a fair amount of technology and work that has to be implemented to make that real-time calculation happen,but this would only be implemented if and when there is an open access participant on the line.Mr.Hickey recommended everyone read the draft open access document and provide comments and discussion regarding content and language. Chair Evans stated no action would be taken on this documenttoday and further discussioniswarranted.Mr.Borgenson presented a scenario asking if Golden Valley has an independentpowerproducerthatwantstoputawindfarminDeltaJunction,would they have to make anapplicationtointerconnect.Mr.Hickey stated the application;would have to be made only toGoldenValley.Mr.Griffith requested explanation ofscenarios with alternate paths.Mr.Hickey commented the language that addresses alternate paths provides that IMC develop a congestionmanagementsystem,which will preserve preexisting capacity rights.Thereis also a capacitybenefitmargin,which are the rights that preexisting or legacy utilities have to access reservesfromothersystems.These are only utilized duringemergency situations.".."Gp.oe Li,Faye%,Mr.Griffith inquired about the date the open access document has to be approved.Chair EvansstatedthereisanextensiontoSeptember1,and these would be adopted at the end of August. 9.NEXT MEETING DATE The next meeting will be held at end of August 2013,:A specific date was not set. 10.ADJOURNMENTMEiTherebeing.nofurther businéss of the AIMC,the meeting adjourned at 11:12 am. Bradley Evans,Chairman Gene Therriault,Secretary va AIMC Draft Meeting Minutes-July 9,2013 Page 6 of6