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HomeMy WebLinkAboutIntertie Managment Commitee Meetings 11-01-2013 2Alaska Intertie Management Committee DRAFT MEETING MINUTES Friday,November 1,2013 Anchorage,Alaska 1.CALL TO ORDER Chair Brad Evans called the meeting of the Alaska Intertie Management Committee to order on November 1,2013 at 3:00 p.m.A quorum was established. 2.ROLL CALL Members present:Bradley Evans (Chugach Electric);Jim Posey -Anchorage Municipal Light &Power (ML&P);Joe Griffith -Matanuska Electric Association (MEA);Cory Borgeson - Golden Valley Electric Association (GVEA);and Gene Therriault -Alaska Energy Authority (AEA). 3.PUBLIC ROLL CALL Public present in Anchorage:Jeff Warner and Louis Agi (ML&P);Burke Wick,Brian Hickey and Mark Johnson (Chugach Electric);Allen Gray (GVEA-phone);Gary Kuhn (MEA);Bernie Smith and T.W.Patch (Regulatory Commission of Alaska);Kirk Warren,Teri Webster and Sara Fisher-Goad (AEA);Brian Bjorkquist (Department of Law);Henri Dale (AEA consultant- phone);Sonya Hewes (Accu-Type Depositions). 4,PUBLIC COMMENT There were no public comments. 5.AGENDA COMMENTS/MOTION FOR APPROVAL MOTION:Mr.Griffith made a motion to approve the agenda as amended.Motion seconded by Mr.Posey.The motion was approved unanimously. 6.APPROVAL OF PRIOR MEETING MINUTES -August 27,2013 MOTION:Mr.Griffith made a motion to approve the minutes of August 27,2013.Motion seconded by Mr.Posey.The motion was approved unanimously. 7.OLD BUSINESS 7A.Reliability Standards -Resolution 13-3 -Operating and Reliability Standards Language Clean-up Chair Evans noted Resolution 13-3 is an action item and requested Mr.Therriault explain the resolution. IMC Draft Meeting Minutes-November 1,2013 Page 1 of 5 Mr.Therriault stated this resolution reflects the technical corrections made to the Reliability Standards.Mr.Dale and Mr.Hickey assisted in making the technical corrections.The resolution also repeals Resolution 13-1 and 13-2 with no substantive changes. Mr.Posey asked if this resolution included a sunset provision.Mr.Therriault stated there is no sunset provision in this resolution and he is comfortable with the language in Resolution 13-3 being sent to the Regulatory Commission of Alaska. Mr.Posey inquired how many publics participated during this four-month revision period.Mr. Therriault stated not many publics participated and it was more a matter of having a very thorough process.He stated no complaints were provided.Chair Evans asked if the open process was non-discriminatory and Mr.Therriault confirmed it was non-discriminatory. Mr.Borgeson asked who came forward during the public process.Mr.Therriault stated no one came forward during the public process.Mr.Posey commented that his previous question about how many publics participated during the four-month revision period was facetious.Chair Evans noted,to be fair,the process gave AEA more time to engage on the subject matter and to find their own comfort level.Chair Evans believes this was a very necessary step and is happy with the results.Mr.Posey expressed his appreciation to all the staff who worked on this resolution. Mr.Borgeson asked Mr.Bjorkquist how additional amendments would be agreed to if this resolution passes without a sunset.Mr.Bjorkquist noted the intertie agreement would still require the super-majority votes plus the affirmative vote of AEA for adoption of amendments. Chair Evans stated the reliability standards are organic and have been changing over the decades and expects there could be more substantial changes.This forces examination of issues,such as the reserves,how they are shared,what limitations are in place and the transmission restrictions and how they affect the reserve pool. Mr.Griffith noted these standards will be sent to the Regulatory Commission of Alaska for their perusal and execution.Mr.Borgeson asked AEA why they object to the sanctions portions of the enforcement mechanism on the intertie management agreement.Mr.Therriault explained AEA is not sure of the authority to enforce the sanctions and believe there are additional pieces that need to be developed before that portion can become effective.Mr.Borgeson asked why AEA does not believe they have authority.Mr.Bjorkquist stated it is the combination of the authority and the status of the sanctions and all of the details being incorporated within the written document.AEA is not comfortable with the sanction provisions taking effect and how the sanctions would be implemented. Mr.Dale reminded the Committee this resolution was to realign with the North American Electric Reliability Corporation's standards.Chair Evans asked Mr.Dale to explain the reserve obligations and discuss the pyramid of priority in verification for these standards.Mr.Dale noted priorities are assigned following the North American Electric Reliability Corporation's guides with Priority 1 being the biggest priority.Chair Evans commented he is looking forward to task assignments because the enforcement on the larger details is what matters the most.He believes the reserve pool is the biggest continuous benefit of this relationship. Mr.Bjorkquist advised the modification exempting the sanctions also provides that until it is separately approved by the Intertie Management Committee,there is nothing that would preclude IMC Draft Meeting Minutes-November 1,2013 Page 2 of 5 incremental adoption of sanctions.If there were certain sanctions that would be more important to have adopted,the Intertie Management Committee could address that on an incremental basis. Mr.Bjorkquist noted the concern AEA had was with the sanctions being adopted in the entirety of the document and unintended consequences flowing from that. Chair Evans recommended this issue be addressed expeditiously.Mr.Therriault stated AEA agrees with addressing this issue expeditiously.Mr.Therriault noted Mr.Dale is speaking to the Intertie Management Committee today,not as a member of the public,but as a consultant for the State. Mr.Griffith asked what happens if the Regulatory Commission of Alaska does not agree the sanctions portion should not be included in this resolution.Chair Evans noted that position would be a problem for the Intertie Management Committee,but does not believe there is anybody present who can answer that question.Mr.Griffith asked if it is the resolution or the document that is controlling here.Mr.Johnson stated his opinion was whatever order the Regulatory Commission of Alaska provides will have to be addressed to the extent that they are the approving body and may approve on a conditional basis.Mr.Johnson advised the Regulatory Commission of Alaska could recommend changes,at which time the Intertie Management Committee either adopts the changes or withdraws the filing.Mr.Johnson believes the Regulatory Commission of Alaska will be reviewing the policy questions involved and not necessarily the technical details of the filing. Mr.Griffith asked for further explanation on the filing process with the Regulatory Commission of Alaska.Mr.Johnson advised if the action is taken that is before the Committee today,then a formal filing transmitting the document to the Regulatory Commission of Alaska would have to be prepared providing the appropriate rationale and explanation of the specific relief being requested. MOTION:Chair Evans called for a roll call vote on Resolution 13-3 -Operating and Reliability Standards Language Clean-up.The motion was approved unanimously. 7B.Open Access Discussion Mr.Therriault explained there was a small working group of interested parties which met and discussed this issue.He noted the group recommends the Intertie Management Committee reconvene on November 15th to perhaps take some action on the open access concept.Mr. Therriault believes the working group has developed an acceptable proposal to forward to the Intertie Management Committee.Chair Evans believes preexisting rights need to be addressed before the proposal can move forward.Chair Evans stated open access does not mean free access.He requested the language reflect a bright line regarding this negotiation of terms and conditions of open access and can function on principle. Mr.Griffith commented the risk faced by carving out the AEA intertie open access is the inevitability of others saying there has already been open access over a major section of the link and therefore,there is open access over existing systems.Mr.Griffith stated he does not know how to get around that from happening.Chair Evans stated this language cannot become the guiding light for all other matters.He noted there is an ongoing cost to the existing members of the pool and questioned what standards and contributions should be set up to allow anyone new to enter the pool. IMC Draft Meeting Minutes-November 1,2013 Page 3 of 5 Mr.Bjorkquist advised he has been tasked with drafting the agreement and is a little bit behind where he had hoped to be at this point.He encouraged the utilities review the next draft and give feedback on how to address any issues.Mr.Therriault appreciated the Intertie Management Committee's sensitivity to the military issue.Chair Evans believes all the existing parties today are happy with moving this forward,but does not want this to be the precedent for everything going forward.Chair Evans stated he was optimistic the schedule can be met as it is now.It was agreed upon that at the November 12 meeting,the deadline could be extended,if needed. Mr.Borgeson noted the new draft has the potential for significant impact to Golden Valley Electric because they are using about 96%of the intertie.He requested this process be given a significant effort to be completed by the November 15th deadline.All of the utilities have voted in favor of the open access rules and it was AEA that voted no,which caused the delay in implementation. 9.NEXT MEETING DATE The next meeting will be November 12,2013 at 1:30 p.m. Chair Evans requested members discuss agenda items for the next meeting.He said the open access issue will be addressed either by taking an action or by tabling.Chair Evans would like to address the under-frequency load shed status and have a report on that issue.Chair Evans requested identifying information areas for a proper study of the under-frequency load shed status.Mr.Griffith asked who is performing that study.Mr.Warner noted the system study subcommittee is performing the project.The plan is to develop a request for proposal by February 14,2014,with a deadline of May 1,2014 for the utilities to present the dynamic data for their units.The final report will be delivered November 1,2014.Chair Evans suggested Mr. Warner provide a progress report to the Intertie Management Committee with the updated information.Chair Evans noted this issue will also be placed on the agenda in case further discussion is needed. Chair Evans noted another issue to be placed on the agenda is in regard to the challenges the pool will face in the first quarter of 2014.The issues will include next steps and work assignments on addressing the utility that is not part of the pool.Chair Evans does not believe this issue concerns the Alaska intertie,but does concern the interconnected system.Mr.Griffith believes this issue does concern the intertie,even though it does not touch the Alaska intertie.Mr. Griffith asked if a working paper should be drafted on this issue.Chair Evans recommended a work group meet and discuss next steps.The work group includes Mr.Hickey,Mr.Agi,Mr. Kuhn and Mr.Dale.Mr.Griffith noted there is currently a good outline that needs to be crafted into language. Chair Evans suggested the next item to be placed on the agenda is determining the most appropriate sanctions for the reliability operating reserves.Mr.Therriault recommended that before the next meeting,each utility make their priority list from the document and see if there is general consensus among the utilities.Mr.Hickey suggested the utilities review the North American Electric Reliability Corporation documents related to requirements of audits. Chair Evans believes the verifications and sanctions need to be completed from the highest priority to the lowest priority.Mr.Borgeson commented sanctions could be placed only on the IMC Draft Meeting Minutes-November 1,2013 Page 4 of 5 Priority 1 issues,which would provide a smaller subset to address.Chair Evans agreed that would be a good starting point,but wants to be clear the utilities are currently addressing the larger issues.Mr.Hickey commented that currently the data is required to be recorded and stored,so that if there is a problem,it can be solved. 10.ADJOURNMENT There being no further business of the IMC,the meeting adjourned at 3:51 pm. Bradley Evans,Chairman Gene Therriault,Secretary IMC Draft Meeting Minutes-November 1,2013 Page 5 of 5