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HomeMy WebLinkAboutBPMC December 6, 2019BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) TELECONFERENCE SPECIAL MEETING Alaska Energy Authority Boardroom,Anchorage,Alaska December 6,2019 1.CALL TO ORDER Chair Izzo called the special meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 9:00 am.A quorum was established. 2.ROLL CALL FOR COMMITTEE MEMBERS Tony Izzo (Matanuska Electric Association [MEA]);Cory Borgeson (Golden Valley Electric Association [GVEA])(phone);Kirk Warren (Alaska Energy Authority [AEA]);Lee Thibert (Chugach Electric Association [CEA])(phone);Bob Day (Homer Electric Association [HEA]) (phone);Jeff Warner (Anchorage Municipal Light &Power [ML&P]);and John Foutz (City ofSeward)(phone). 3.PUBLIC ROLL CALL Bryan Carey,Ashton Doyle,Curtis Thayer (AEA);Elwood Brehmer (Alaska Journal of Commerce);Crystal Enkvist (Alaska Power Association)(phone);Don Maynor (ARECA Insurance Exchange)(phone);Brian Hickey (phone),Russell Thornton (phone);Burke Wick (CEA);Stephan Saldanha (Department of Law);Pete Sarauer (phone),Leo Quiachon (GVEA);Larry Jorgenson (HEA)(phone);Kirk Gibson (McDowell Rackner Gibson, PC)(phone);Amy Fenerty (Aldrich CPS)(phone);David Pease,Tony Zellers (MEA);Anna Henderson (ML&P);Bernie Smith (Public);Jay Layne (Regulatory Commission of Alaska (RCA))(phone),Unidentified Speaker (phone);Unidentified Speaker (phone);and SunnyMorrison(Accu-Type Depositions).4.PUBLIC COMMENTS-None. 5.|AGENDAAPPROVAL| Chair Izzo requested the agenda be amended to include an SQ Line Update by HEAfollowingItem6. MOTION:A motion was made by Mr.Thayer to approve the agenda with the amendment to include an SQ Line Update by HEA following Item 6.Motion seconded by Mr.Warren. Kirk Gibson,McDowell Rackner Gibson,PC,indicated the bylaws state the business at the special meeting of the Committee shall be limited to the purpose stated in the notice of such a meeting.Mr.Gibson believes an SQ Line update is appropriate,but no actions may be taken.Chair Izzo agreed. BPMC Minutes December 6,2019 Page 1of5 The motion to approve the agenda with the amendment to include an SQ Line Update by HEA following Item 6.passed without objection. 6.NEW BUSINESS-Bradley Lake Spill Level Matters Chair Izzo informed Mr.Borgeson requested the special meeting regarding Item 2g.from the Bradley O&D Committee Meeting Report Notes from November 8,2019.Chair Izzo asked Mr.Borgeson to comment.No audible response was given. Chair Izzo requested Pete Sarauer,Chair of O&2D Committee,comment on the subject report from November 8",Item 2g.Mr.Sarauer stated the O&D Committee met on November 8% and made a resolution with the anticipation of the SQ Line being returned to service soon. The intent was to maximize the amount of water that would be available for the participants upon returned service.Chair Izzo read the recommended motion made by the O&D at the O&D Committee meeting to present before the BPMC: e 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. Chair Izzo indicated the recommended motion made by the O&D at the O&D Committeemeetingpassedwithaamajorityvote. Chair Izzo requested HEA comment.Mr.Day informed he spoke against the motion at the O&D Committee.He thought it was misdirected.At this point,HEA and Seward do not have any water at risk and are willing to abstain and let the parties do as they wish until the SQLinereturnstoservice. MOTION:Mr.Borgeson made a motion to adopt the recommendation 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.Motion seconded by Mr.Thibert. Mr.Warner understood HEA's expressed objection at the O&2D Committee meeting was in reference to the possibility of the lake spilling.He noted the historical average inflows are very low this time of year.He believes the motion was intended to provide a method for which the utilities that do not have access to Bradley Lake would maintain some of the water within the lake during this time the SQ Line is out of service and will be able to utilize the water once the line returns to service. Mr.Foutz asked Mr.Gibson regarding the BPMC voting procedures for this particular vote. Mr.Gibson advised the voting standard for this kind of matter is within Bylaws Section 5.10.4,adopting procedures for scheduling production and dispatch of project power, which requires an affirmative vote of at least four representatives of the purchasers,whose percentage shares of the capacity of the project are greater than 51%. BPMC Minutes December 6,2019 Page 2 of 5 Chair Izzo believes it would be helpful to get an update on the SQ Line at this point in the meeting.He requested Larry Jorgenson,HEA,provide the SQ Line status update.Mr. Jorgenson reported there have been hundreds of outages due to the recent weather events, adding to the difficult time.The DOT permits have been procured to conduct repairs to the SQ Line.Mitigation and repair crews are proceeding and working very closely with the Refuge to ensure processes are compatible with Refuge management.The imminent weather conditions,including high winds and rain,will push Bradley Lake up into spill conditions again.The weather conditions are challenging,but repairs and coordination of repairs continue to move forward.There is not a solid timeline for completion. Mr.Borgeson requested additional information on the necessary repairs.Mr.Jorgenson explained there are 14 poles that need to be replaced based on the EDM report.He does not know the status of the replacement progress.Mr.Jorgenson stated he will speak with the Director of Operations and will provide the information to the Committee members.He informed crews are currently out in the field,but he does not know the specific location of any of the crews and thus,cannot verify whether or not 'the crews are working on the SQLinerepairs.: Mr.Thibert asked Mr.Jorgenson if HEA has options of contracting out the SQ Line work, since HEA is simultaneously busy with storm response.Mr.Jorgenson reported HEA has been working with the contractor Sturgeon Electric for storm response and repair work. Mr.Thibert requested HEA provide a daily status report to the utilities due to the urgencyofthematter.Chair Izzo requested Mr.Day respond.Mr.Day noted he will be happy to provide any information that is received,as it is received.Mr.Day stated he cannot confirm information will be provided to him on a daily basis,and therefore,cannot promise he canprovidedailyinformationtotheBPMC. Mr.Borgeson requested a discussion occur to consider hiring a contractor to be present inthefieldonadailybasistoprovidetheBPMCareportoftheactionstakenbyHEAtorepairtheline.He believes it is consistent and relevant with the noticed subject of the Bradley Lake spill level matters.The daily information will allow the BPMC the opportunity to change the spill levels,if necessary.Mr.Gibson agreed the discussion would be consistent during the meeting,but the motion on the floor has not yet been resolved. A roll call vote was taken,and the motion passed,with Mr.Foutz and Mr.Day abstaining. Chair Izzo requested Mr.Borgeson continue his previous discussion. MOTION:Mr.Borgeson made a motion for the BPMC to authorize CEA to engage an inspector to give daily reports on the progress of the SQ Line,with the expense to be paid by the BPMC.Motion seconded by Mr.Thibert. Mr.Borgeson explained Mr.Day stated he cannot provide daily reports.Mr.Borgeson believes it is prudent to have a contractor conduct a daily review and provide daily report BPMC Minutes December 6,2019 Page 3 of 5 of the critical condition of the SQ line and the level of spill.This gives the BPMC the ability to act appropriately should conditions change.He appreciated the concern of Mr.Dayregardingthepossibilityoflosingwateroverthedam.Mr.Borgeson believes CEA's costs could be passed through if CEA has an appropriate person in-house to fulfill the duties. Mr.Thibert expressed support for the motion.He does not believe HEA is providing adequate and timely information.He believes this is a coordination issue and HEA will have to cooperate with the inspector to provide the information.Mr.Thibert agreed if it is the desire of the Committee,CEA will comply and utilize either internal resources or an outside contractor.Mr.Thibert reiterated the offer for CEA to assist HEA with construction management or other assistance to continue forward momentum. Mr.Warner requested comments from HEA regarding the motion.Mr.Day stated he understands the need and the want of the northern utilities to have a daily report on progress,but he is not convinced having an inspector is going to expedite the process.Mr. Day believes the delays are due to the necessary agencies permitting processes for access to the area.These delays are consistent with Mr.Day's past experiences.Mr.Day stated some customers have been without power since Thanksgiving and HEA has been totally focused on restoring power to customers during this heavy wet snow environment.He will continue to provide the utilities with updates as he receives them. Mr.Thayer expressed frustration regarding the lack of information being shared with the utilities and AEA.The SQ Line being down affects 500,000 consumers along the Railbelt.He stated the reporting has been spotty and inconsistent.He believes the motion emphasizes the request for timely information so that the necessary help by AEA and the utilities can be provided. Chair Izzo believes all the utilities share concern about cost impacts to consumers.He expressed hesitancy in sharing his perspective because he is Chair,but feels it is relevant and important to note the cost of the SQ Line being down since August 19"through December 2"4 has cost consumers north of the Peninsula almost $10.4 million in additional fuel costs.Chair Izzo advised the utilities are getting tremendous pressure regarding the need for updated and daily information in relation to generation planning,fuel supply planning,and other impacts.© A roll call vote was taken,and the motion passed,with Mr.Day abstaining. 7.COMMITTEE REPORTS Mr.Gibson advised the Special Committee will be meeting on Tuesday and Wednesday of next week.He will introduce the issues of this BPMC meeting as part of the discussion. Mr.Day noted his comments do not fall under Committee Reports.The current lake level is 1179.3 and spill is at 1180.There was spill over the Thanksgiving holiday.He stated the level typically drops and incremental point-one or point-two-feet per day during this cold weather. BPMC Minutes December 6,2019 Page 4of5 8.COMMITTEE ASSIGNMENTS -None 9.MEMBER COMMENTS Mr.Foutz extended Merry Christmas salutations. Mr.Thibert expressed holiday salutations.He noted CEA will coordinate with HEA regarding the daily reports to BPMC. Mr.Borgeson expressed appreciation to Ms.Doyle and AEA staff for their extra work to facilitate this special meeting. Mr.Day promised he will do his best to provide information to BPMC.His best hope is fortheSQLinetobeinserviceforChristmas. 4 Mr.Warner expressed holiday salutations.He recommended the scheduling of another special meeting in the near future regarding the SQ Line. Chair Izzo expressed appreciation to Ms.Doyle and AEA staff for their diligent work. 10.NEXT MEETING DATE-January 24,2020 The next meeting date is scheduled for January 24,2020.Chair Izzo indicated the next special meeting regarding the SQ Line will be at the call of the Chair based on Committee desire.. 11.ADJOURNMENT There being no further business for the committee,the meeting adjourned at 9:42 am. BY: Tony Izzo,Chair Attest: Alaska Energy Authority,Secretary BPMC Minutes December 6,2019 PageSof5 11. BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) TELECONFERENCE SPECIAL MEETING AGENDA Friday,December 6,2019 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 -Bradley Lake Spill Level Matters COMMITTEE REPORTS COMMITTEE ASSIGNMENTS MEMBER COMMENTS NEXT MEETING DATE -January 24,2020 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.g 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.er /tet1.The Bradley O&D will temporarily modify the Pending Spill level from 1175 to 1178 Bef 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.xa hel >Toily Hartt ReportPeterSarauer-Power Systems Manager eguletGoldenValleyElectricAssoc.nc how fom Je ae puyol758IllinoisStreet,Fairbanks,AK 99701 oy 79 P(907)458-5821 (Office); (907)458-6370 (fax) Bradley Lake Project Management Committee Special Meeting ALASKA ENERGY AUTHORITY (AEA) Special Meeting -Teleconference 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,December 6,2019 at 9:00 a.m. 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 setup for those unable to attend in person.Dial 1-888-585-9008 and when prompted,enter code 134-503-899# For additional information,please contact the AEA executive assistant at (907)771-3074. The public is invited to attend.The State of Alaska (AEA)complies with Title It 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 12-6-19 Agenda.pdf Department:Commerce,Community andEconomicDevelopment Revision History Category:Public Notices Created 11/27/2019 3:15:00 PM by e6f9d8b3-Sub-Category: e991-4579-aade-ab39b6b33f10 Location(s):Statewide Modified 12/2/2019 9:49:22 AM by e6f9d8b3-e991-Project/Regulation #: 4579-aade-ab3 9b6b33f10 Modified 12/3/2019 9:38:38 AM by e6f9d8b3-e991-Publish Date:11/27/2019 4579-aade-ab3 9b6b33f10 Archive Date:12/7/2019 Events/Deadlines: BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) TELECONFERENCE SPECIAL MEETING AGENDA \Friday,December 6,2019 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- Bradley Lake Spill Level Matters _felt ota >6a Ranarnti-COMMITTEE REPORTS,,fal Coverite ral pve S8 Lert wupolodeCOMMITTEEASSIGNMENTSPye(1174.3 Litt))' MEMBER COMMENTS NEXT MEETING DATE -January 24,2020 ADJOURNMENT BRADLEY LAKE PROJECT MANAGEMENT COMMITTEE Next Meeting:January 24,2020 First Second First Second First Second First Second BPMC 12/06/19 arr F Roll Call Agenda ay)apill lov Pra Pint}Roll call from top to bottom ending with Chair |anoehiare - Yes No Yes No Yes No a No Yes No Chugach Electric Association \/YY \WA City of Seward WA -_-/ Municipal Light &Power JY /WA Sf Homer Electric Association JS /.id --_- Golden Valley Electric Association JS v {"Y VY Alaska Energy Authority WA Y/Y \/ Matanuska Electric Association WA 4 .WA l .oe onsteee na uente cane conven nenann scene ld To.8 O80.rupee.tine.eM Ao4:4am 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 Chugach Electric Association City of Seward Municipal Light &Power Homer Electric Association Golden Valley Electric Association Alaska Energy Authority Matanuska Electric Association Bradley Lake Project Management Committee Friday,December 6,2019 **PLEASE WRITE LEGIBLY** NAME ORGANIZATION Sean Saldanha Deck of Lew0-4 ELL.JAETef€Wham Leefp?ElyWwoock betlar ADC Sy.dhe beer LSQAL ArhBertie,Sat TH SuUBLIC Z na Cantey AEAAshtonConpionAER Kick Waccea AEA