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Home My WebLink AboutBPMC - Cancelled November 15, 201910. 11. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) TELECONFERENCE SPECIAL MEETING AGENDA Friday,November 15,2019 9:00 a.m. Alaska Energy Authority Board Room 813 W Northern Lights Blvd.Anchorage,AK 1-888-585-9008 Conference Room Code 134-503-899# CALL TO ORDER ROLL CALL FOR COMMITTEE MEMBERS PUBLIC ROLL CALL PUBLIC COMMENTS AGENDA APPROVAL NEW BUSINESS A.Bradley O&D Committee Report and Recommendations COMMITTEE REPORTS COMMITTEE ASSIGNMENTS MEMBER COMMENTS NEXT MEETING DATE -November 22,2019 ADJOURNMENT Bradley O&D Committee Meeting Report Notes November 8,2019 The Bradley O&D Committee met on Friday November 8th,2019. A significant portion of this meeting was devoted to discussion of the SQ Line repair. Here are a couple of items of note: Item 2.f f.Bradley O&D feels that they do not have the authority to bring this to a resolution and it needs to be resolved at the BPMC. i.0&D recommends the BPMC managers work together in resolving the issues surrounding the SQ Line to provide a path forward in expediting the repair and re-energization of the SQ Line.The Bradley O&D committee reaffirms their utilities willingness to provide materials, equipment and personnel to assist HEA in accomplishing this. Item 2.2 g.Bradley O&D explored avenues that it felt it does have authority that might prepare the utilities for the return of the SQ Line. i.To provide for a maximum amount of water available to the Bradley Participants for when the SQ Line is returned to service -and taking into consideration the normal Bradley inflows during this time of year,it is not expected Bradley Lake will spill until next spring if the SQ Line remains out of service.This motion reduces the pending spill level by 3 ft.but still allows for 2 feet of freeboard. ii.A motion was made by AMLP and seconded by CEA. 1.The Bradley O&D will temporarily modify the Pending Spill level from 1175 to 1178 to preserve water for the Bradley Participants.Expecting the 1175 Pending Spill level will be restored once the SQ Line is returned to service. 2.All were in favor -except HEA abstained and Seward representative was not present. Peter Sarauer -Power Systems Manager Golden Valley Electric Assoc. 758 Illinois Street,Fairbanks,AK 99701 (907)458-5821 (Office) (907)458-6370 (fax) RECEIVED By the Regulatory Commission of Alaska on Nov 06,2019 Homer Electric Association,Inc. Corporate Office Central Peninsula Service Center 3977 Lake Street 280 Airport Way Homer,Alaska 99603-7680 Kenai,Alaska 99611-5280 Phone (907)235-8551 Phone (907)283-5831 FAX (907)235-3313 FAX (907)283-7122 November 6,2019 Regulatory Commission of Alaska 701 W.Eighth Avenue,Suite 300 Anchorage,Alaska 99501 Dear Commissioners: RE:HEA Swan Lake Fire Update Homer Electric Association,Inc.("HEA”)has previously reported to you by letter dated September 24, 2019 information regarding the fire damage and operational status of HEA's transmission line between the Soldotna and Quartz Creek substations (the "S/Q Line”).I understand that at the hearing in Docket U- 19-020 you requested Chugach witnesses Brian Hickey and Lee Thibert provide an update of this matter. The purpose of this letter is to provide you with additional information regarding the Swan Lake fire and issues identified by HEA impacting the S/Q Line and its future restoration. BACKGROUND: A fairly comprehensive treatment of matters relating to the Swan Lake fire itself,can be found at the following link: https://nifc.maps.arcgis.com/apps/MapSeries/index.html?appid=8ab 1 e7c87c294afb90c101cc4ca38e41. OPERATIONAL STATUS: The S/Q Line continues to be disconnected from the HEA system.HEA has retained the services of a contractor (Carlos Tree Service)to clear an access trail through the length of the burned right-of-way and a contractor (EDM)to evaluate the condition of the facilities themselves.The clearing contractor has completed its initial pass,resulting in a primitive road in the right of way.The road will allow equipment access to structures in need of repair and has been used by EDM to inspect the facilities. HEA crews have removed almost all trees that were in contact with the conductors.By early next week, HEA plans to release an RFP to clear all remaining trees in and adjacent to the right-of-way that,due to the fire,have the potential of falling on the transmission line or injuring persons working in the right-of- way.To date,the landowner,the Kenai National Wildlife Refuge,remains very supportive of our efforts. As of November 5,EDM had completed its line inspection and the preliminary report indicates 14 poles need replacing.Although only seven poles were the result of fire damage,seven poles sustained mechanical or insect damage.In addition,many of the guy wires were damaged and are in need of replacement or repair.Similar to the RFP for additional clearing work,HEA will go out for bids shortly on the pole replacements.To date,there is no estimate of the costs to repair the damage. A Touchstone Energy*Cooperative Kx HEA Swan Lake Fire Update November 6,2019 Page 2 of 2 RESTORATION ISSUES: The primary use of the S/Q Line is to transmit electric energy generated at the Bradley Lake project from HEA's Soldotna substation to the substation of Chugach Electric Association,Inc.at Quartz Creek for delivery to Chugach and the other participants in the Bradley Lake project.At the present time,HEA also receives a benefit through the purchase of spinning reserves over the line.This benefit is relatively short- term,because HEA has entered into an agreement to purchase a 46.5 MW battery energy system storage with a tentative June 1,2021 delivery date.After that time,purchases of spinning reserves will no longer be needed.The lack of a future appreciable benefit to HEA of owning and maintaining the S/Q Line is important to the issue of line restoration,because HEA is required by its fiduciary duty to its members to ensure that they are not harmed if HEA elects to restore the line. Under normal circumstances cost recovery would not be an issue,because the transmission service would be paid for in tariffed rates that would be expected to compensate the utility for all costs associated with repair and maintenance and any liabilities attendant to ownership of the line.As the commission is aware, however,in view of Regulatory Commission ofAlaska v.Matanuska Electric Association,Inc.,HEA has no ability to secure commission approval and enforcement of tariffed rates for the primary service to be delivered from the line.This puts HEA in the position of potentially having the ability to collect the costs associated with the S/Q Line from the users of the HEA transmission system only through either a contractual arrangement or further litigation.Further conversations with the users of the line will be necessary before HEA has the assurances it requires to move forward with restoration. While HEA has a real concern with its ability to recover the out-of-pocket costs associated with the Swan Lake fire response and damage,an issue of perhaps even greater importance needs to be addressed in order for HEA ratepayers to be held harmless from the operation of the line for the benefit of others.As the California fires have demonstrated,owning a transmission line carries with it the potential for significant liability arising from fires caused by the operation of the line.In the absence of an ability to recover costs associated with such liability through tariffed rates,HEA will need firm commitments from all users of the line to indemnify HEA against such costs should they arise. SUMMARY: In summary,HEA is concerned regarding the prudency of incurring costs and potential liabilities for which its members may ultimately be liable,where no mechanism exists for recovering the costs,other than through its members'rates,and where there is no corresponding benefit to its members.HEA expects to have further discussions with the users of HEA's transmission system regarding this issue and is hopeful the matter can be easily resolved.We remain available to provide you with additional information as you may require. Should you have any additional questions or comments,please do not hesitate to call me at 907-283-2312 or email me at bjanorschke@homerelectric.com. Sincerely, Bradley P.Janorschke General Manager CANCELED Bradley Lake Project Management Committee Special Meeting ALASKA ENERGY AUTHORITY Special Meeting Public Notice Bradley Lake Project Management Committee Notice is hereby given that the Bradley Lake Project Management Committee will hold a special meeting on Friday,November 15,at 9:00 a.m. For additional information,please contact the AEA executive assistant 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 134 503-899#. The public is invited to attend.The State of Alaska (AEA)complies with Title If of the Americans with Disabilities Act of 1990.Disabled persons requiring special modifications to participate should contact AEA staff at (907) 771-3000 to make arrangements. 'Attachments,History,Details Attachments Details BPMC 11-15-19 Agenda.pdf Commerce,Community andDepartment:.Economic Development Revision History Category:Public Notices Created 11/13/2019 11:02:09 AM by e6f9d8b3-Sub-Category: e991-4579-aade-ab39b6b33f10 Location(s):Statewide Modified 11/13/2019 1:52:15 PM by e6f9d8b3-Project/Regulation #: e991 -4579-aade-ab3 9b6b33f10 Modified 11/14/2019 4:58:51 PM by e6f9d8b3-Publish Date:11/13/2019 e991-4579-aade-ab39b6b33f10 Archive Date:11/16/2019 Events/Deadlines: 10. 11. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) TELECONFERENCE SPECIAL MEETING ge AGENDA Friday,November 15,2019N9:00 a.m. Alaska Energy Authority Board Room 813 W Northern Lights Blvd.Anchorage,AK 1-888-585-9008 Conference Room Code 134-503-899# CALL TO ORDER ROLL CALL FOR COMMITTEE MEMBERS PUBLIC ROLL CALL PUBLIC COMMENTS AGENDA APPROVAL NEW BUSINESS A.Bradley O&D Committee Report and Recommendations COMMITTEE REPORTS COMMITTEE ASSIGNMENTS MEMBER COMMENTS NEXT MEETING DATE -November 22,2019 ADJOURNMENT BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE First Second First Second First Second First Second BPMC 11/15/19 Roll Call AgendaRollcallfromtoptobottomendingwithChair Yes No Yes No Yes No Yes No Yes No Matanuska Electric Association Chugach Electric Association City of Seward Municipal Light &Power Homer Electric Association Golden Valley Electric Association Alaska Energy Authority Boe s wee oe SARINA 5 9 tm cutones cd Ra HerneaeAS ATM OnAEN ARREST SE ee ae ee Ra eae oa Re a ante oe EAS mae ge ha a tase FUN aL A activin vendo aaaenSieaMeSSeRD ee Gee Mae ak gates Geiatbof mee nwtAS ri he eM ea at rete ee aria F baae mete First Second First Second First Second First Second First Second Roll call from top to bottom ending with Chair Yes No Yes No Yes No Yes No Yes No Matanuska Electric Association Chugach Electric Association City of Seward Municipal Light &Power Homer Electric Association Golden Valley Electric Association Alaska Energy Authority Next Meeting:November 22,2019 - ATTENDANCE --BPMC MEETING,November 15|COMMITTEEMEMBERS ------- -sACLTERNATE/i Cory Borgeson |GVEA |Leo Quiachon Oo Lee Thibert,Vice Chair Oo CEA Brian Hickey -Brad JJanorschke _/"HEA Bob Day Bryan Carey,Secretary/T reasurer 7 AEA |"Curtis 7Thayer a : i Tony Izzo,Chair - MEA Tony Zellers : 'AnnaHenderson "|MLP Jeff Warner re |John Foutz -SEW Public Members _|| COUNSEL CEA Brian Hickey (CEA)Kirk Gibson,McDowell Rackner&Gibson PC Mark Johnson (CEA)_; Stefan Saldanha,Dept of Law -Sherri Higher (CEA)AEA a Brenda Applegate "Paul Risse (CEA)||Brandy Dixon - fp Matt Clarkson (CEA)|Amy Adler a ||Josh Resnick (CEA)-|Jocelyn Gardner_OO es ee Brandi White : HEA Alan Owens (HEA)--_/Carmen Noble --- Emily Hutchinson (HEA)-_David Lockard -;Larry JcJorgensen (HEA)i /Jessica Houston /7 Steve Canon (HEA)7 F Ashton Compton oe MLP_"Kirk Warren_|Molly Morrison (MLP)7 :i Beazit Redzepi -GVEA Ron Woolf (GVEA)oo po OO Oe Pete Sarauer (GVEA)-Other Rick Baldwin (Baldwin &Butler) MEA Jim BiBrooks (MEA)po Bernie Smith -7 on 'David Peace (MEA).i>ce ee et epee -Matt Reisterer (MEA) EdJenkins(MEA)ee _ Bradley Lake Project Management Committee Friday,November 15,2019 **PLEASE WRITE LEGIBLY** NAME ORGANIZATION