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HomeMy WebLinkAbout2024.09.27 BPMC Meeting Minutes - FINALBRADLEY LAKE PROJECT MANAGEMENT COMMITTEE (BPMC) REGULAR MEETING AGENDA September 27, 2024 1. CALL TO ORDER Chair Million called the meeting of the Bradley Lake Hydroelectric Project Management Committee to order at 10:00 a.m. A quorum was established. 2. ROLL CALL (for Committee members) Travis Million (Golden Valley Electric Association [GVEA]); Tony Zellers (Matanuska Electric Association [MEA]); Brad Janorschke (Homer Electric Association [HEA]); Brian Hickey (City of Seward); Arthur Miller (Chugach Electric Association [CEA]); and Curtis Thayer (Alaska Energy Authority [AEA]). 3. PUBLIC ROLL CALL (for all others present) Jennifer Bertolini, Mark Billingsley, Bryan Carey, Pam Ellis, Jim Mendenhall, William Price, Mark Zeismer (AEA); Joel Paisner (Ascent Law Partners); Matt Clarkson, Sherri Highers, Andrew Laughlin, Mike Miller, Russell Thornton, Unidentified Speaker (CEA); David Grossklaus (Dorsey & Whitney); Dan Bishop (GVEA); Larry Jorgenson, Sarah Lambe, Andrew Patrick, Jessica Spuhler (HEA); and Tony Izzo, David Pease, Jon Sinclair (MEA). 4. AGENDA APPROVAL MOTION: A motion was made by Mr. Janorschke to approve the agenda as presented. Motion seconded by Mr. Miller. The motion to approve the agenda passed unanimously. S. PUBLIC COMMENTS - None. 6. APPROVAL OF MEETING MINUTES —August 8, 2024 MOTION: A motion was made by Mr. Thayer to approve the Minutes of August 8, 2024 as presented. Motion seconded by Mr. Hickey. The motion to approve the Minutes of August 8, 2024, passed unanimously. 7. NEW BUSINESS - None. BPMC Minutes 9/27/24 Page 1 of 4 8. OLD BUSINESS A. GRIP 3, Phase 1 Update Chair Million requested Jim Mendenhall, AEA, to present the update. Mr. Mendenhall reviewed the report issued that is included in the Committee packet regarding the Grid Resilience and Innovation Partnerships (GRIP) Project, Phase 1. AEA conducted a Board meeting on September 10, 2024, at which time the Board approved the acceptance of the award for the entire $206 million match of the contract. The current authorized spending limit is $14.7 million, and includes pre - award costs. State funding currently is $32.7 million. Mr. Mendenhall discussed the proposal from Stantec. The notice of receipt is expected to be released. Initial timelines, budgeting, and issues related to the environmental permits are anticipated to be outlined during the first quarter of next year. A member asked Mr. Thayer if there is a specific timeline regarding the reference in the third paragraph of the report that the State requests the BPMC to dedicate the additional $30 million. Mr. Thayer explained that the State would like to go into legislative session with the dedication to maximize the State's match. There were no other comments or questions. B. Railbelt Regional Coordination Update i. Railbelt Transmission Workshop Update Chair Million requested Mr. Hickey to provide the Railbelt Regional Coordination Update. Mr. Hickey informed that the transmission workshop on September 16, 2024 was well -attended. He is preparing a write-up of the group consensus on the significant advantages of building transmission line from Kenai to Healy. There were no comments or questions. 9. OPERATOR'S REPORT Chair Million requested HEA's representative Larry Jorgenson to discuss the included Operator's Report. Mr. Jorgenson noted that the Unit #2 trips were determined to be a problem with an undervoltage relay that is part of the breaker. Alternate contacts are being used to supply the function, until a replacement relay can be procured. The Unit #2 is back online and functioning. Mr. Jorgenson noted that the lake level reached 1,176.2 feet. It is currently at 1,174.4 feet. There were no comments or questions. 10. COMMITTEE REPORTS A. Budget Update Chair Million requested Mark Zeismer, AEA, to discuss the budget update. BPMC Minutes 9/27/24 Page 2 of 4 Mr. Zeismer commented that there is not a budget to actual report this month, as there is not much FY25 information to review. At the next meeting, he will present a budget update report, the results of the Bradley special audit, and the FY24 refund calculation. Mr. Zeismer highlighted that his recent focus has been assisting the AEA finance team to conduct the FY24 financial statement and audit that should be completed in October. There were no comments or questions. B. O&D Report Andrew Patrick, HEA and Chair of the O&D Committee, reviewed the O&D Report in the packet and discussed issues that were addressed at the most recent Wednesday meeting, including the proposed islanding schedule beginning January 7, 2025 and continuing through March 21, 2025, with periodic gaps. Project work will occur during this time. Additionally, Mr. Patrick highlighted meeting discussion regarding individual utility recommendations and analysis specific to the Dixon project. He noted that the Soldotna SVC is back in service and is no longer constrained. Mr. Patrick advised that the O&D fully recommends the purchase of a spare replacement for the failed breaker. The O&D will meet again in October. Mr. Janorschke expressed appreciation for the O&D update. He commented that during the previous legislative session, legislators were told that no more than two weeks of islanding would occur. Mr. Janorschke asked if the O&D Committee discussed the discrepancy between two weeks and the proposed islanding schedule from January 7, 2025 to March 21, 2025. Mr. Patrick indicated that he is not aware of any legislative direction or discussion. The O&D was focused on the BPMC resolution passed indicating that 120 days of islanding could be supported per year, which aligns with the proposed schedule. Mr. Patrick discussed that there are hazards and challenges with the work, independent of what time of year that the work occurs. Mr. Janorschke commented that he supports the islanding to upgrade the transmission system. The concern regards the imminent spill situation at Bradley Lake, and the information legislators received that islanding would only occur for two weeks. He welcomed additional information. There were no other comments or questions. MOTION: A motion was made by Mr. Thayer to enter into Executive Session; matters discussed with an attorney for the Committee or a member of the Committee, the immediate knowledge of which could have an adverse effect on the legal position of the Committee or the Authority. Motion seconded by Mr. Miller. The motion to enter into Executive Session passed with no objection. 11. EXECUTIVE SESSION: 10:19 a.m. (Bylaws Section 5.11.4) — Matters discussed with an attorney for the Committee or a member of the Committee, the immediate knowledge of which could have an adverse effect on the legal position of the Committee or the Authority. BPMC Minutes 9/27/24 Page 3 of 4 The Committee reconvened its regular meeting at 11:07 a.m. MOTION: A motion was made by Mr. Miller to terminate its consulting services agreement with Brownstein. Motion seconded by Mr. Janorschke. The motion to terminate the consulting services agreement with Brownstein passed, with Mr. Thayer abstaining. 12. MEMBERS' COMMENTS Mr. Janorschke commented that he wished there were more hours in the day to keep up with the multitude of activities occurring. He expressed appreciation for the work and effort. Mr. Hickey expressed appreciation particularly to AEA staff who are in the middle of an audit. He thanked the O&D Committee for their resolution to the breaker issue at Bradley Lake. Mr. Izzo echoed Mr. Janorschke's comments. Mr. Thayer thanked HEA for their hospitality during the four Bradley Lake visits this summer. Mr. Thayer noted that visitors included members of the administration, Commissioner Springsteen, Commissioner Espindola, Co -Chairs of the House Finance Committee, Chairman of FERC, Alaska Senator Claman, and U.S. Senator Murkowski. Mr. Thayer will give the Committee the names of all the visitors. He commented that there is a list of legislators who are in the queue to visit Bradley Lake. Mr. Thayer highlighted the visitors' positive response and full support of Bradley Lake and Dixon Diversion after the tour. Mr. Miller expressed appreciation for the good meeting, and specifically thanked AEA for the informative updates and efforts moving forward. Chair Million echoed the previous comments of appreciation to members and staff, particularly the efforts of Jennifer Bertolini, AEA. 13. NEXT MEETING DATE — December 6, 2024 14. ADJOURNMENT There being no further business for the committee, the meeting adjourned at 11:13 a.m. ravis Million, Chair Zr- Curtis Thayer, Secretary BPMC Minutes 9/27/24 Page 4 of 4