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HomeMy WebLinkAboutBPMC meeting April 18, 2017BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Alaska Energy Authority,Anchorage,Alaska April 18,2017 1.CALL TO ORDER Chair Borgeson called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:42 a.m. 2.ROLL CALL FOR COMMITTEE MEMBERS Cory Borgeson (Golden Valley Electric Association [GVEA]);Michael Lamb (Alaska Energy Authority [AEA]);Lee Thibert (Chugach Electric Association [CEA]);Tony Izzo (Matanuska Electric Association [MEA]);Mark Johnston (Anchorage Municipal Light &Power [ML&P]);Brad Janorschke (Homer Electric Association [HEA]);and John Foutz (Seward). 3.PUBLIC ROLL CALL Bryan Carey,Jocelyn Garner,Daniel Hertrich,Kirk Warren,Teri Webster (AEA);Brian Bjorkquist (Attorney General's Office [AGO]);Crystal Enkvist (Alaska Power Association [APA]); Sherrie Highers,Mark Johnson,Burke Wick (CEA);Ron Wolfe (GVEA);Emily Hutchinson,Bob Day,Larry Jorgensen,Alan Owens (HEA);Kirk Gibson (McDowell Rackner Gibson,PC);Gary Kuhn (MEA);Molly Morrison,Jeff Warner (MLP);Bernie Smith (Regulatory Commission of Alaska [RCA]);and Sydney Hamilton (Accu-Type Depositions). 4,PUBLIC COMMENTS None. 5.AGENDA APPROVAL MOTION:Mr.Lamb made a motion to approve the agenda.Motion seconded by Mr.Izzo. The agenda was approved. 6.APPROVAL OF PRIOR MINUTES -March 17,2017 MOTION:Mr.Thibert made a motion to approve the minutes of March 17,2017.Motion seconded by Mr.Johnston. The motion passed without objection. 7.OLD BUSINESS A.Battle Creek Financing Mr.Gibson summarized his findings that Battle Creek decisions and financing can proceed under optional project work with the affirmative vote of AEA and the affirmative participation of BPMC Minutes 4/18/17 Page 1 of 4 four representatives with a total of 51%project responsibility.The long-established project responsibility is delineated as CEA at 30.4%,ML&P at 25.9%,GVEA at 16.9%,MEA at 13.8%, HEA at 12%,and Seward at 1%.Mr.Gibson commented the complexities of the operations if only four members participate will be the challenge for the Committee.Mr.Gibson recommended all Committee members initially participate in the Battle Creek Diversion and then specific rights to be assigned for 15 years. Mr.Borgeson asked can the Battle Creek project go forward if only three utilities wanted to participate.With private financing and the agreement of all utilities on who is responsible for what,it can happen. Mr.Thibert informed CEA has prepared a draft amendment to the Power Sales Agreement that could allow one or more utilities to take energy from the diversion project and it includes concepts regarding O&M activities.Mr.Thibert will circulate the draft to the Committee next week for review.He believes one or more of the participants could go out and get private financing in exchange for the energy of the project. Mr.Janorschke requested an update on the timeline in order to proceed with implementation. Mr.Carey gave a detailed description of the differences between bidding through a one-step process and a two-step process.Mr.Carey noted the importance of completing brushing and contractor site visits during August 2017.The final Battle Creek project financing agreements do not have to be completed by August for this to occur. 8.NEW BUSINESS A.O&M Operator Procurement Mr.Lamb stated he did not get a response from this committee regarding changing the AEA regulations to broaden the definition of a qualified utility as a project operator.Based upon direction from the AEA Board we are going to move forward with modifying the regulations to ensure an open and competitive RFP process. Mr.Thibert requested copies of the current regulations and proposed modifications be provided to members.Mr.Bjorkquist agreed and informed the proposed changes will have a public comment period. B.SVC Financing Mr.Lamb informed AEA is awaiting the resolution regarding the determination of the March 3rd letter questioning the enforceability of the Power Sales Agreement.The security issue has to be resolved before AEA can proceed with seeking outside financing. Mr.Janorschke commented half of the SVC has been paid for through the R&C Fund and recommends continuing the payments for the remaining two years until it is paid off. Mr.Thibert believes the opportunity to finance the SVC has been missed and agreed to continued payments of the SVC through the R&C Fund. Mr.Izzo reiterated the upcoming budget places increased pressure on the R&C Fund.The proposed SVC financing would free up funds to accommodate the increased needs for equipment and remodeling. BPMC Minutes 4/18/17 Page 2 of 4 C.Battle Creek Update Mr.Carey informed Alaska Department of Natural Resources (DNR)should have public notice out this week for the land lease.The plans and specifications were submitted to Federal Energy Regulatory Commission (FERC)last week and a response is expected in July.The timeline remains unchanged from the previous update. Chair Borgeson requested Mr.Carey provide his experience and background regarding overseeing projects of this nature.Mr.Carey informed his experience includes approximately 25 Rural Energy Group projects in remote Alaska,focusing on bulk fuel,powerhouse,and hydro energy. Mr.Carey explained the support structure that will be provided by DOWL contractors and engineers.Chair Borgeson asked who will be present at the project site.Mr.Carey noted a DOWL representatives,Ron Rebenitsch,would be at the site.Mr.Janorschke and Mr.Thibert vouched for Mr.Rebenitsch ability.AEA will conduct site visits during critical time periods. Chair Borgeson inquired if the utilities who sign up for Battle Creek will be responsible for cost overruns.Mr.Carey expects that will be the agreement made between the utilities.Chair Borgeson asked if the participating utilities'representatives are able to have oversight at the project.Mr.Carey welcomed further discussions about utility oversight and participation.Chair Borgeson commented the participating utilities have significant project management experience to contribute and expressed his candid concern regarding the management history of State of Alaska projects.Mr.Lamb commented,for the record,the number of well-managed State projects far exceeds the number of projects that have not been well-managed. D.Bradley Spillway Raise Presentation Mr.Carey began his presentation describing the Bradley project site photos provided.He noted additional energy generation from Bradley appears to have occurred over the time period.The reasons could include increased power plant efficiencies,increased precipitation,and/or increased glacial melting.The rise is slow and variable from year-to-year.Mr.Carey noted the spillway crest is 10 feet below the dam crest at 1,180.The seven-foot addition to the spillway height provides the most cost effective benefit,increasing the storage capacity of Bradley Lake by approximately 27,500 acre-feet. Mr.Carey discussed other projects that have raised spillways.Mr.Carey reviewed the approximate capital costs for the spillway raise construction.He gave an outline of the process, which includes an initial consultation document,comments to the document,and a vegetation study report.Mr.Carey noted he presented this information to the O&D Committee yesterday. Bradley generator increase in efficiency will produce an annual gain of 2500 MWh.Valuing Bradley energy at $50 MWh would save approximately $125,000 per year.Depending on the "rule curve”used during wet years Bradley could generate more energy by avoiding spills.It is hard to quantify this benefit. Chair Borgeson inquired about the potential timing of the project in reference to constraints on workers and facilities coinciding with the Battle Creek project.Mr.Carey noted the timing for FERC finalizations for a spillway raise is unknown but likely be about four years.Mr.Carey explained the various potential contractor benefits from the two projects occurring BPMC Minutes 4/18/17 Page 3 of4 simultaneously.Chair Borgeson commented the project could be delayed if financed through the current R&C Fund. Chair Borgeson proposed the Bradley spillway raise item be placed on the agenda for a decision at the next meeting. 9.COMMITTEE REPORTS None. 10.OPERATOR REPORT Mr.Day submitted and gave a detailed description of the Operator Report.The statistics are for the month of March.There were no questions. 11.COMMITTEE ASSIGNMENTS None. 12.MEMBERS COMMENTS Mr.Janorschke requested an update on dynamic dispatch be added as an agenda item for the next meeting. Mr.Izzo expressed interest in receiving additional Battle Creek data to provide to his board in order to make a well-informed decision. 13.NEXT MEETING DATE The next meeting date is to be determined. 14.ADJOURNMENT There being no further business for the committee,the meeting adjourned at 12:06 p.m. UO Qo Cory Borgeson,Chair v Michael Lamb |'/ Alaska Energy Authority,Secretary BPMC Minutes 4/18/17 Page 4 of4 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Alaska Energy Authority,Anchorage,Alaska April 18,2017 fi Chair Borgeson called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:42 a.m. 1.CALL TO ORDER 2.ROLL CALL FOR COMMITTEE MEMBERS Cory Borgeson (Golden Valley Electric Association [GVEA]);Michael Lamb (Alaska Energy Authority [AEA]);Lee Thibert (Chugach Electric Association [CEA]);Tony Izzo (Matanuska Electric Association [MEA]);Mark Johnston (Anchorage Municipal Light &Power [ML&P]);Brad Janorschke (Homer Electric Association [HEA]);and John Foutz (Seward). 3.PUBLIC ROLL CALL Bryan Carey,Jocelyn Garner,Daniel Hertrich,Kirk Warren,Teri Webster (AEA);Brian Bjorkquist (Attorney General's Office [AGO]);Crystal Enkvist (Alaska Power Association [APA]); Sherrie Highers,Mark Johnson,Burke Wick (CEA);Ron Wolfe (GVEA);Emily Hutchinson,Bob Day,Larry Jorgensen,Alan Owens (HEA);Kirk Gibson (McDowell Rackner Gibson,PC);Gary Kuhn (MEA);Molly Morrison,Jeff Warner (MLP);Bernie Smith (Regulatory Commission of Alaska [RCA]);and Sydney Hamilton (Accu-Type Depositions). 4.PUBLIC COMMENTS None. §.AGENDA APPROVAL MOTION:Mr.Lamb made a motion to approve the agenda.Motion seconded by Mr.Izzo. The agenda was approved. 6.APPROVAL OF PRIOR MINUTES -March 17,2017 MOTION:Mr.Thibert made a motion to approve the minutes of March 17,2017.Motion seconded by Mr.Johnston. The motion passed without objection. 7.OLD BUSINESS A.Battle Creek Financing Mr.Gibson summarized his findings that Battle Creek decisions and financing can proceed under optional project work with the affirmative vote of AEA and the affirmative participation of BPMC Minutes 4/18/17 Page |of 4 four representatives with a total of 51%project responsibility.The long-established project responsibility is delineated as CEA at 30.4%,ML&P at 25.9%,GVEA at 16.9%,MEA at 13.8%, HEA at 12%,and Seward at 1%.Mr.Gibson commented the complexities of the operations if only four members participate will be the challenge for the Committee.Mr.Gibson recommended all Committee members initially participate in the Battle Creek Diversion and then specific rights to be assigned for 15 years. Mr.Borgeson asked can the Battle Creek project go forward if only three utilities wanted to participate.With private financing and the agreement of all utilities on who is responsible for what,it can happen. Mr.Thibert informed CEA has prepared a draft amendment to the Power Sales Agreement that could allow one or more utilities to take energy from the diversion project and it includes concepts regarding O&M activities.Mr.Thibert will circulate the draft to the Committee next week for review.He believes one or more of the participants could go out and get private financing in exchange for the energy of the project. Mr.Janorschke requested an update on the timeline in order to proceed with implementation. Mr.Carey gave a detailed description of the differences between bidding through a one-step process and a two-step process.Mr.Carey noted the importance of completing brushing and contractor site visits during August 2017.The final Battle Creek project financing agreements do not have to be completed by August for this to occur. 8.NEW BUSINESS A.O&M Operator Procurement Mr.Lamb stated he did not get a response from this committee regarding changing the AEA regulations to broaden the definition of a qualified utility as a project operator.Based upon direction from the AEA Board we are going to move forward with modifying the regulations to ensure an open and competitive RFP process. Mr.Thibert requested copies of the current regulations and proposed modifications be provided to members.Mr.Bjorkquist agreed and informed the proposed changes will have a public comment period. B.SVC Financing Mr.Lamb informed AEA is awaiting the resolution regarding the determination of the March 3rd letter questioning the enforceability of the Power Sales Agreement.The security issue has to be resolved before AEA can proceed with seeking outside financing. Mr.Janorschke commented half of the SVC has been paid for through the R&C Fund and recommends continuing the payments for the remaining two years until it is paid off. Mr.Thibert believes the opportunity to finance the SVC has been missed and agreed to continued payments of the SVC through the R&C Fund. Mr.Izzo reiterated the upcoming budget places increased pressure on the R&C Fund.The proposed SVC financing would free up funds to accommodate the increased needs for equipment and remodeling. BPMC Minutes 4/18/17 Page 2 of 4 C.Battle Creek Update Mr.Carey informed Alaska Department of Natural Resources (DNR)should have public notice out this week for the land lease.The plans and specifications were submitted to Federal Energy Regulatory Commission (FERC)last week and a response is expected in July.The timeline remains unchanged from the previous update. Chair Borgeson requested Mr.Carey provide his experience and background regarding overseeing projects of this nature.Mr.Carey informed his experience includes approximately 25 Rural Energy Group projects in remote Alaska,focusing on bulk fuel,powerhouse,and hydro energy. Mr.Carey explained the support structure that will be provided by DOWL contractors and engineers.Chair Borgeson asked who will be present at the project site.Mr.Carey noted a DOWL representatives,Ron Rebenitsch,would be at the site.Mr.Janorschke and Mr.Thibert vouched for Mr.Rebenitsch ability.AEA will conduct site visits during critical time periods. Chair Borgeson inquired if the utilities who sign up for Battle Creek will be responsible for cost overruns.Mr.Carey expects that will be the agreement made between the utilities.Chair Borgeson asked if the participating utilities'representatives are able to have oversight at the project.Mr.Carey welcomed further discussions about utility oversight and participation.Chair Borgeson commented the participating utilities have significant project management experience to contribute and expressed his candid concern regarding the management history of State of Alaska projects.Mr.Lamb commented,for the record,the number of well-managed State projects far exceeds the number of projects that have not been well-managed. D.Bradley Spillway Raise Presentation Mr.Carey began his presentation describing the Bradley project site photos provided.He noted additional energy generation from Bradley appears to have occurred over the time period.The reasons could include increased power plant efficiencies,increased precipitation,and/or increased glacial melting.The rise is slow and variable from year-to-year.Mr.Carey noted the spillway crest is 10 feet below the dam crest at 1,180.The seven-foot addition to the spillway height provides the most cost effective benefit,increasing the storage capacity of Bradley Lake by approximately 27,500 acre-feet. Mr.Carey discussed other projects that have raised spillways.Mr.Carey reviewed the approximate capital costs for the spillway raise construction.He gave an outline of the process, which includes an initial consultation document,comments to the document,and a vegetation study report.Mr.Carey noted he presented this information to the O&D Committee yesterday. Bradley generator increase in efficiency will produce an annual gain of 2500 MWh.Valuing Bradley energy at $50 MWh would save approximately $125,000 per year.Depending on the "rule curve”used during wet years Bradley could generate more energy by avoiding spills.It is hard to quantify this benefit. Chair Borgeson inquired about the potential timing of the project in reference to constraints on workers and facilities coinciding with the Battle Creek project.Mr.Carey noted the timing for FERC finalizations for a spillway raise is unknown but likely be about four years.Mr.Carey explained the various potential contractor benefits from the two projects occurring BPMC Minutes 4/18/17 Page 3 of 4 simultaneously.Chair Borgeson commented the project could be delayed if financed throughthecurrentR&C Fund. Chair Borgeson proposed the Bradley spillway raise item be placed on the agenda for a decision at the next meeting. 9.COMMITTEE REPORTS None. 10.OPERATOR REPORT Mr.Day submitted and gave a detailed description of the Operator Report.The statistics are for the month of March.There were no questions. 11.COMMITTEE ASSIGNMENTS None. 12.MEMBERS COMMENTS Mr.Janorschke requested an update on dynamic dispatch be added as an agenda item for the next meeting. Mr.lzzo expressed interest in receiving additional Battle Creek data to provide to his board in order to make a well-informed decision. 13.NEXT MEETING DATE The next meeting date is to be determined. 14.ADJOURNMENT There being no further business for the committee,the meeting adjourned at 12:06 p.m. BY:(h (,(orcs -Cory Borgeson,Chair v vee MOLEX Michael Lamb ''/ Alaska Energy Authority,Secretary BPMC Minutes 4/18/17 Page 4 of 4 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING AGENDA Tuesday,April 18,2017 10:30 a.m. Alaska Energy Authority's Board Room 813 West Northern Lights Boulevard,Anchorage,AK To participate,dial 1-888-585-9008 and use code 467 050 126. 1.CALL TO ORDER 2.ROLL CALL FOR COMMITTEE MEMBERS 3.PUBLIC ROLL CALL 4.PUBLIC COMMENTS 5.AGENDA APPROVAL 6.APPROVAL OF PRIOR MINUTES --March 17,2017 7.OLD BUSINESS A.Battle Creek Financing Kirk Gibson 8.NEW BUSINESS A.O&M Operator procurement AEA B.SVC Financing AEA/Kirk Gibson C.Battle Creek update AEA D.Bradley Spillway Raise presentation AEA 9.COMMITTEE REPORTS 10.OPERATOR REPORT 11,COMMITTEE ASSIGNMENTS 12.MEMBERS COMMENTS 13.NEXT MEETING DATE -TBD 14.ADJOURNMENT BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE MEETING REGULAR MEETING Alaska Energy Authority,Anchorage,Alaska March 17,2017 1.CALL TO ORDER Chair Borgeson called the regular meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 9:01 a.m. 2.ROLL CALL FOR COMMITTEE MEMBERS Cory Borgeson (Golden Valley Electric Association [GVEA]);Michael Lamb (Alaska Energy Authority [AEA]);Lee Thibert (Chugach Electric Association [CEA]);Tony !zzo (Matanuska Electric Association [MEA]);Mark Johnston (Anchorage Municipal Light &Power [ML&P]);and Brad Janorschke (Homer Electric Association [HEA)). 3.PUBLIC ROLL CALL Bryan Carey,Jocelyn Garner,Daniel Hertrich,Kirk Warren,Teri Webster (AEA);Brian Bjorkquist (Attorney General's Office);Crystal Enkvist (Alaska Power Association);Bob Day, Larry Jorgensen (HEA),Emily Hutchinson and Alan Owens (HEA-phone);Burke Wick (CEA - phone);Ron Wolfe (GVEA -phone);Gary Kuhn (MEA);Molly Morrison (MLP);Bernie Smith (Regulatory Commission of Alaska [RCA])and Jay Layne (phone-RCA);Sydney Hamilton (Accu-Type Depositions) 4.PUBLIC COMMENTS None. 5.AGENDA APPROVAL MOTION:Mr.Lamb made a motion to approve the agenda.Motion seconded by Mr. Janorschke. Chair Borgeson requested to amend the agenda adding Battle Creek Update after Item 7C. Battle Creek Project Financing.There were no objections. Mr.Thibert requested postponing Item 7D.O&M Operator Procurement to the next meeting.He commented the managers have briefly discussed this item and believes more discussion is necessary before it can be fully addressed. MOTION:Mr.Thibert made a motion to amend the agenda postponing Item 7D.O&M Operator Procurement to the next meeting and removing it from the agenda.Motion seconded by Mr.Izzo. Mr.Lamb requested leaving Item 7D.on the agenda as part of the record and having a short discussion regarding the memo he sent to Board members.The item can also be placed on the agenda for the next meeting to fulfill Mr.Thibert's request. DRAFT BPMC Minutes 3/17/17 Page 1 of4 The agenda was approved as amended,with Mr.Lamb and Mr.Janorschke voting against. 6.APPROVAL OF PRIOR MINUTES-February 17,2017 MOTION:Mr.Thibert made a motion to approve the minutes of February 17,2017. Motion seconded by Mr.Izzo. Mr.Izzo cited the February 17,2017 minutes,page four,Item 7E.Bradley Project Organizational Chart,last paragraph,wherein Mr.Lamb stated the utilities benefitted.Mr.lzzo expressed his belief the benefit is to 75 percent of the population.Chair Borgeson believes the minutes accurately reflect Mr.Lamb's comments.Mr.1zzo agreed,and did not propose a change. The motion passed without objection. 7.OLD BUSINESS A.FY18 Bradley Budget Ms.Garner reviewed the changes to the budget since the previous meeting due to HEA request to upgrade the crews quarters,the kitchen,and to replace the high bay lighting in the plant.The increase is $103,000.The new HEA's capital project budget is $1,657,000. Mr.Janorschke commented the work on the budget by the O&D Committee and Finance Committee was thorough and greatly appreciated. Mr.Thibert expressed appreciation in receiving the D.Hittle and Associates'report from HEA reviewing the facilities and equipment.He inquired about the report.Mr.Day explained the proposed budget tries to balance the report projections with the current experiences and expenditures. Chair Borgeson commented the members have to pay for the budget expenditures in one year and expressed interest in spreading some of the projects out over a couple of years to reduce the budget by approximately $300,000 to $400,000. Mr.Janorschke believes it is unfair to ask HEA to make budget cuts.He believes budget cuts should be the responsibility of the Finance and O&D Committees.Mr.Warner reviewed the O0&D Committee's support of the specific budget expenditures,but had no opinion as to the timing of the purchases.Mr.Wick noted Committee discussions regarding exposure from the failure of a piece of equipment could increase the cost of replacement and the Committee believes the budgeted expenses are warranted. Mr.1zzo inquired about the option of financing the SVC project to take pressure off the R&C Fund,providing rate stability for members.Mr.Lamb believes it is reasonable to pursue SVC project financing.Mr.Thibert commented the option of wrapping SVC financing with Battle Creek financing is still a possibility. MOTION:Mr.Janorschke made a motion to approve the FY18 Bradley Budget with direction to the Finance Committee to pursue long-term financing for the SVC project DRAFT BPMC Minutes 3/17/17 Page 2 of4 Lowe and the non-R&C capital projects that are included in this year's budget.Motion seconded by Mr.Lamb. Chair Borgeson commented on the budget expenditure for the engineering work on the spillway extension.He requested the BPMC receive a presentation on the final report at the next meeting. A roll call vote was taken,and the motion passed unanimously. B.Disposal of Bradley Assets Ms.Garner reviewed the process of the disposal of Bradley assets.The operator provides the assets to Fleet in Homer.Fleet posts the assets on the State auction website for sale.After the sale,the funds are provided to AEA.AEA returns the funds to the project and are provided as a refund at the end of the year. Cc.Battle Creek Project Financing Ms.Garner led the discussion regarding the spreadsheet of the two financing options for the Battle Creek Project created by AEA and reviewed by the Budget Subcommittee.The total estimated costs for the project is $46.7M.The deadline to have the financing in place is July 16, 2017 to prevent major cost increases.The financing rates appear to be increasing and a delay in the securing the financing will add significant cost to the project and therefore the cost of energy.A one percent increase in financing is nearly an increase of 10 percent cost of energy and about equal to a 10 percent increase in construction cost if the term of financing is 18 years. Battle Creek Update Mr.Carey shared and discussed a video using LIDAR of the Battle Creek project that was shown at a Battle Creek workshop earlier this week.Mr.Carey reviewed the updated materials on the Battle Creek permitting,critical path schedule,and costs. 8.COMMITTEE REPORTS Mr.Warner informed the O&D Committee has been working on operating procedures related to Bradley Lake,and will present at the next BPMC meeting. 9.OPERATOR REPORT Mr.Day submitted the Operator Report.They are currently doing annual maintenance work. The unit availability for the month of February was 100 percent. 10.COMMITTEE ASSIGNMENTS Chair Borgeson reviewed assignments.Kirk Gibson will provide a report on the Battle Creek financing if only a few utilities participate.The Finance Committee will research the SVC financing and look at longer-term financing for equipment for the FY18 budget.The O&D Committee will provide a presentation at the next meeting on the spillway improvement. 11.MEMBERS COMMENTS DRAFT BPMC Minutes 3/17/17 Page 3 of 4 Mr.Lamb commented the mission of AEA to lower the cost of power is perpetual and energy projects have to be viewed from both short-term and long-term perspectives. Mr.Thibert expressed appreciation for the work of the Budget Committee and the Finance Committee. Chair Borgeson expressed appreciation to participants for their time and efforts. 12.NEXT MEETING DATE The next meeting date is April 18,2017. 13.ADJOURNMENT There being no further business for the committee,the meeting adjourned at 10:32 a.m. BY: Cory Borgeson,Chair Attest: Michael Lamb Alaska Energy Authority,Secretary DRAFT BPMC Minutes 3/17/17 Page 4 of4 Co Battle Creek Update April 17,2017 Battle Creek Permitting: e Alaska DNR land lease likely out for public comment this week. e 100%Plans &Specifications submitted to FERC 4/11/17 Budget: S800K Final Design/Specs ($700K) Fish Habit Plan ($50K) AEA staff (S21K) Total Obligated/Expenses $771K Remaining $29K Critical Path Schedule March 17,2017:Determine changes to agreements. April 17:Utilities determine in or out.Resolve PSA issue. April 18 May 15,2017:Revise &sign revised agreements. June 15,2017 Participating utilities provide funding for survey &brushing July 16,2017:Financing in place Start route survey &brushing paid for by participating utilities July 26,2017:Advertise Invitation to Bid August 16,2017:Contractor Pre-Bid Meeting August 22,2017:Site visit October 2017:Bids due "Doses Heciiole BWC.25 PlHects FiDMANaeKtatitenvoeLaddworkebyDowLRonRolboonich Sub OmMmitye AAW 4/17/2017 Bradley Hydroelectric Spillway Raise Bryan Carey,P.E. Bradley Lake Hydroelectric Project Alaska Energy Authority PUNjayauTwomry Bradley Lake Hydroelectric Project ¢Mean AnnualBradleyLakeHydroelectricProject383600MWh Energy Generation (MWh) ooo |--_f\lA\[ VN TE 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 »4/17/2017\ *Spillway crest 1180' *Dam crest 1190' *Crest of spillway could be raised by 7 ft. *Increase Bradley Lake capacity by 10%.aeoaFt"PVN 3 G7 AUTHORITY Bradley Lake Dam Spillway if 7 E *Spillway crest\ ee Sat length 175' ''D3;mgonhdtBiteayepeed IAis 4/17/2017 ¢Original idea to use 5 ft.wood flashboard similar to Long Lake at Snettisham. ¢Need to be engineered more for Bradley (FERC requirements & thickness of spillway. ¢There is a risk when water flows over that wood spillway raise could be washed away. Swan Lake Dam Spillway Raise = 4/17/2017\ Swan Lake Dam Spillway Raise IELN DSA Bradley Lake Reservoir -Case 1 Operating Shift raat Lake L ;*Current spill at 1180 ft. owe *Current pending spill +190 declared at 1175 ft. 1180 *Current lake capacity 1170 4 284K ac-ft. 1160 *New capacity 312K ac-1150 +ft11404 . 4130 | : *Shift of Elevations up 1120 oo by 7 ft.(no other 4110 ee:NO NESE changes).tovo Fo _,SS --««|*New spill 1187 ft.1080 :tres SS aESEaaiear as aN eg "|©New pending spill 11821070apahaheedpepeeg| 1060 64 B21 71 781 820 OM 8129 10ND 14 11128 «1298 WT AZT oe eae?*Annual energy _increase 2,500 MWh because of efficiency improvement. IELNASISA 4/17/2017 Bradley Lake Reservoir -Case 2 No Operating Shift Bradley Lake Level 41070 Reeth Sg Sefa Salta ta The Hag aLhg a hal Nag eh ag: 61 G24 744 7134 820 OH «9/29 1019 448 14/28 12/18 17 «(1127 216 38 28 ANT SP SIZT ASKA\/fa vain) Current spill at 1180 ft. Current &new Pending spill declared at 1175 ft. Current lake capacity 284K ac- ft. New capacity 312K ac-ft. Dry years &average years little change in energy. Wet years lake level goes above 1180 ft.Increased head and water saved to later. Average years may go above 1180 ft.Increased head and water saved to later depending on behavior. Current behavior,strong push to use water in August before pending spill reached. /Edear Ae Bradley Lake Spillway Raise Cost Table 1:Spilhway Crest Raise -Total Project Cost sas Fee/Cost EstimateStepDescription-Low End High End la_|FERC license amendment process support (FY17)$50k $150k 1b |Agency consultation studies (FY17)$25k $100k 2 Feasibility Study (FY18)$125k $250k 3 |Final design &construction documents (FY19)$150k $250k 4 |Construction support services (FY19-FY20)$150k $250k Permitting and Engineering Costs |$500k $1.0M Total Capital Costs $2.8M $3.5M Total Crest Raise Project Cost |$3,300,000 |$4,500,000 10 Bradley Lake Operator Report Bradley Project Management Committee April 17,201°7 Unit Statistics:as of 03/31/2017 Generation Unit 1 (MWhrs)Unit 2 (MWhrs)Total (MWhrs) March 2017 959 16,400 17,359 Hydraulics Avg.Lake Level (ft)Usage (ac ft)Fishwater (ac ft) March 2017 1,122 20,551 3,279 Lake Level -1,127 (Feb 28)Unit Availability 100%(March) Operations,Maintenance,and Inspections: 1) 2) 3) 4] >) 6) 7) 8) 9) Kenai Islanding -due to transmission work the Kenai was islanded for the entire month of March. Due to Islanding -Bradley was in a single unit operation and we completed annual maintenance work on Unit 1. Transformer Tap Change -On March 30 we took the plant off line for a short period to change the taps on the GSU's.The change on unit 1 went well.When we re-energized the transformer on Unit 2 after the tap change the islanded Peninsula experienced a load shed due to the frequency drop due to transformer inrush. After the tap change -During the switching to restore station service to its normal configuration governor control was lost taking the only running unit at Bradley to FSNL with no control.This caused a larger ( 12,000customer]loadshedontheHEAsystem. Further investigation -The loss of the governor control warrants further investigation.The governor should not lock up on loss of station service. Bradley Unit #2 nozzle seal -There is no change to the status of the nozzle oil leak.The leak continues to be minor. Presentation Made -Alan Owens and Bob Day presented at the NWHA meeting in Puyallup Washington.During the meeting we met Snohomish Hydro personnel who havea sister unit to Bradley (All Fuji).They have not rebuilt their nozzles in 34 years. Units #2 Accusonic flow meter -Additional parts have been received. Marker Ball Replacement -Parts availability will require a delay.The contractor wants to take Bradley off-line for 10 days to do the work."ine 1s 1F 10)Safety Meeting -The ERP was presented and discussed on March 20. Bradley Lake Operator Report Page 1 Bradley Lake Project Management Committee -Alaska Online Public Notices Page 1 of 1 STATUS:Active Bradley Lake Project Management Committee ALASKA ENERGY AUTHORITY (AEA) Bradley Lake Project Management Committee Notice is hereby given that the Bradley Lake Project Management Committee will hold a regular meeting on Tuesday,April 18,2017 at 10:30 a.m.For additional information contact Teri Webster at 907-771-3074. This meeting will be conducted by electronic media pursuant to AS 44.62.310 at the following location: Alaska Energy Authority Board Conference Room 813 West Northern Lights Boulevard,Anchorage,Alaska; A teleconference line has been set up for those unable to attend in person.Dial 1-888-585-9008,Enter Code 467-050-126#. The public is invited to attend.The State of Alaska (AEA)complies with Title Il of the Americans with Disabilities Act of 1990.Disabled persons requiring special modifications to participate should contact AEA staff at 907- 771-3074 to make arrangements. Attachments,History,Details Attachments Details None Department:Commerce,Community andP'Economic Development Revision History Category:Public Notices Created 4/12/2017 9:42:21 AM by eeeneaey Advisory Committee Meetingtawebster. Modified 4/12/2017 9:43:20 AM by [Details]Project/Regulation #: tawebster : Publish Date:4/12/2017 Archive Date:4/19/2017 Events/Deadlines: https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=1 85379 4/12/2017 BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE REGULAR MEETING ye AGENDASTuesday,April 18,2017 10:30 a.m. Alaska Energy Authority's Board Room 813 West Northern Lights Boulevard,Anchorage,AK To participate,dial 1-888-585-9008 and use code 467 050 126. 1.CALL TO ORDER 2.ROLL CALL FOR COMMITTEE MEMBERS 3.PUBLIC ROLL CALL 4.PUBLIC COMMENTS 5.AGENDA APPROVAL 6.APPROVAL OF PRIOR MINUTES --March 17,2017 7.OLD BUSINESS A.Battle Creek Financing Kirk Gibson 8.NEW BUSINESS A.O&M Operator procurement AEA B.SVC Financing AEA/Kirk Gibson C.Battle Creek update AEA D.Bradley Spillway Raise presentation AEA 9.COMMITTEE REPORTS 10.OPERATOR REPORT 11.COMMITTEE ASSIGNMENTS 12.MEMBERS COMMENTS 13.NEXT MEETING DATE -TBD 14.ADJOURNMENT Gu 20-10 CZA beard room 2-ID;,A-ler CocoBTon}- -\Z HarBPMCorIMCmeetingavailabilitycxassO- 12.Z0-2-lec IMC April sone Possible GVEA ML&P CEA MEA AEA Board room dates (Kirk) 5IZlo BPMC April GVEA ML&P CEA MEA Seward HEA AEA Board room Mork Tohrso Ao consultMety pcasg Core (200M Bradley Lake Project Management Committee Tuesday,April 18 @ 10:30 am. "PLEASE WRITE LEGIBLY** NAME ORGANIZATION Kick Giosad MEDaW<\\Rocha Giesor TW SUCUADLA tun Woy ACLU -TupeMayle7°44 2600/Chivcdt Larry "lorgenser weeBouinOmessVEG Airey Koka pet LOMA KIC CEA Brau [Soor|as To AGO ele ON leaJowlynCarne'PEA sett AnaWY SL ws PryrK ViSk Ara Kv Lt pt Eh/AEA Molly WUorrigcem Mer Danre\Verlnectk Areih Bee Gro SsonM ov"BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE First Second 4 First Second H First Second First SecondBPMC4/18/17 xNNor | Rol!Call Agenda Minutes Battle creek financing O&M operator Roll call from top to bottom ending with Chair procurement No Yes No Yes No Yes No Yes No Homer Electric Association Matanuska Electric Association City of Seward Alaska Energy Authority Municipal Light &Power Chugach Electric Association Golden Valley Electric Association First Second First Second First Second First Second |First Second SVC FinancingRollcallfromtoptobottomendingwithChair Yes No Yes No Yes No Yes No Yes No Homer Electric Association Matanuska Electric Association City of Seward Alaska Energy Authority Municipal Light &Power Chugach Electric Association Golden Valley Electric Association rile ECE eg MPaRed oS ST OE RECESS Beinn pte bs SeteBevan1NextMeeting:TBD -_ TA BC Fin ty foje .Sptonad PPO\KAS Seer Mayor,4-vep o(Si%>+AcA Gepeentyonty)Al go mand gornghsfre 10 yrsloofComplecuiewsoporofortuQMotLywe. 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(L Of vVame dispatch to be added to nel MeekirgCriticcak -DEYDd ws BPMC \2.0 ATTENDANCE -BPMC REGULAR MEETING,Apr 18 @ 10:30 am COMMITTEE MEMBERS 1 ALTERNATE WA Cory Borgeson,Chair GVEA Lynn Thom pson Le/Lee Thibert,Vice Chair CEA Burke Wick":J Brad Janorschke HEA i,Bob Day JS Michael Lamb,Secretary/Treasurer AEA Bryan Carey / /lony Izzo MEA Gary Kuhn A i | |A Mark Johnston MLP 4 4 Jeff Warner YW A John Foutz '|SEW Public Members 'COUNSEL David Lockard Kirk Gibson,McDowell Rackner &Gibson PCJ L- /\Kirk Warren XINBrian Bjorkquist,Dept of Law | Brian Hickey (CEA) ”|Mark Johnson (CEA)J 7 Crystal Enkvist (APA) Mel Hutchinson (APA) Rich Baldwin (HEA) Anna Henderson.(MLP) "|Alan Owens (HEA)shone, Bernie Smith(RCA)-D\ygpoe Emily Hutchinson (HEA)PAone Jim Brooks (MEA) Gar Kuh MEAN,Duo David Pease (MEA) Molly Morrison (MLP)/ we Larry Jorgensen (HEA)J o $ofRonWolfe(GVEA)phone BD acky /Sherri Higherd Shure.Y Fi Secelyn Cardnez " t ve2,Danes wkerin dn