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HomeMy WebLinkAboutIMC Oct 16, 2015Wrianl.Gowe wededz2.MLEP shock.yesterday. TA.Haar)-ne £aRLOGreement Yeh.Gone.Yara th .Ober rt mths.Changed Fea acttaf%declared.Man 4 Herth VS Achwal,Ueclae Achot +Spin What therhotfosonoVcaton.Acocd =U1 provide add'l spinCory"nS parelty.Drseused pdssible Penotty 25 Incentive ww Not ao SVer-Bhan-Ww.So TApasaQPanethariandsIMC&ELO ;Reliablby Stds 4A asmentmert Aisemaaton .Fires POLY 1D g we finasTB.Accept as eoment today signed MLAP Syr cost +Syr@ worrentySparefartsAFPWOwsgants,Ant renegiate.Ox ta,ws preset by IMeherConardercdtcion,Sole source”DOA Gary K.MEA FLW eshant 3eFU MEA 30%directly TOMEA,Lenee (Nat ppprovad Arpendchire,wy AEA to tL Wo]MEA 6A.Bran - §3.Kick -ERS Roatbelt Wangs,Plan.Dave. °°°'cre>\t Stas.: Schedule,Wrofyr end.Hr her,Dex BAY ATCOinkacreerut ARELTE®Vso Rel Side.RAC (ola)Conor evis tug docdPensEpwe>ree Coupes fo ign Sto nr to gr togthen,onincties las d shah bidetEPS4Yenc"REO Praposa2 -OWeB-current cpmdaeh Modif 01-03.New corbmet-Jor other shis.SropoonS >Reere@®.Henri -Under contrad PAgning two Spunng reserveEBddveRalBelRel,Comm HEA wrt Parhe.unl jd wt dh wheeling is SolvedWEA-Load shed -Poaing Sone chaned.Bry Sue.ct -appealed tor ane supiret laws i21BMe UchP hoy 165¥e CUlingKiestlCEAWpdackenewtMeeting10,08 3 CmntocrnMotisnEWCwltenspRiupdatedRelstdsORptedsbyMe.Hind w/DFELE or IMC -FequestPDPHalWorneGonewartdtolot@DidectsarperWonkBLSE2ndCoryalsotndCoryMotionDilbeZA00adtuncostBranWgHEA-wethru RUG Seu WE Maybe lator HEM Pay z loon +4 Future ols ¢Henry bit Hw) 4%10,20 TAF wprnetois 10¢report lO;DO.qd,faa ALASKA INTERTIE MANAGEMENT COMMITTEE AGENDA' Friday,Oct.16,2015 9:00 a.m.-11:00 am Alaska Energy Authority,Board Room 813 W.Northern Lights Boulevard,Anchorage,Alaska 1.CALL TO ORDER 2.ROLL CALL FOR COMMITTEE MEMBERS 3.PUBLIC ROLL CALL 4.AGENDA APPROVAL 5.PUBLIC COMMENTS /6.APPROVAL OF PRIOR MINUTES -Sept 1,2015, 7.OLD BUSINESS A.Spin and reserve negotiations update -IOC ye SVC warranty policy update -AEA 8.NEW BUSINESS Coordination of reliability standards conformance efforts -Chugach'No gpocs B._Railbelt transmission plan update -AEA 9.|REPORTS|A.I0C/OPERATORS REPORT -ML&P/GVEA 10.COMMITTEE ASSIGNMENTS 11.NEXT MEETING DATE 12.ADJOURNMENT To participate via teleconference,dial 1-888-585-9008 and use conference room code 467 050 1267tupdate,Dowifes Habstatbon proeored rode CONFIDENTIALITY AND NON-DISCLOSURE AGREEMENT THIS CONFIDENTIALITY AND NON-DISCLOSURE AGREEMENT (this "Agreement”)is entered into as of October 21st,2015 and is between American Transmission Company LLC,a Wisconsin limited liability company ("ATC”)and Alaska Energy Authority,a public corporation of the State of Alaska ("AEA”).ATC and AEA may be referred to in this Agreement individually as a "Party”and collectively as the "Parties”. RECITALS: A.ATC is a transmission-only electric utility company and AEA is a public corporation of the State of Alaska. B.ATC desires to evaluate the potential development of one or more electric transmission projects and/or the formation of a transmission-only electric utility in the state of Alaska. C.AEA's mission is to reduce the cost of energy in Alaska.As part of that mission,AEA desires to work with third parties,such as ATC,interested in developing energy infrastructure,entities,and systems in Alaska. D.ATC desires to share with AEA information,including Confidential Information,to further the mutual interests to develop energy infrastructure,entities,and systems in Alaska.AEA acknowledges that ATC is only willing to share such Confidential Information with AEA in exchange for the covenants made by AEA in this Agreement. AGREEMENT NOW,THEREFORE,in consideration of the mutual promises and covenants contained herein,and for - other good and valuable consideration,the receipt and sufficiency of which are hereby acknowledged,the Parties agree as follows: 1.Incorporation of Recitals.The Recitals set forth above are incorporated into this Agreement by this reference. 2.Definitions. a."Affiliate”means,with respect to any Person at any time,any other Person that, directly or indirectly,through one or more intermediaries,Controls,is Controlled by,or is under common Control with,such first Person at such time. b."Alaska Public Records Act”means AS 40.25.100 40.25.295,and the regulations adopted regarding those statutes; c."Confidential Information”means any of ATC's,its Affiliates'and any of its or their Representatives'information that is confidential under the Alaska Public Records Act and is confidential and proprietary information provided to AEA,which may include:(a)engineering,operating and technical data, drawings,designs,plans,discoveries,ideas,concepts,know-how,techniques,strategies,specifications, 1 schedules,computer programs and applications;and (b)business plans and methods including business development plans and methods,customer information,material catalogs,vendor lists,inventory files and financial data. d."Control”means the possession,directly or indirectly,of the power to direct or cause the direction of management and policies of a Person,either alone or in conjunction with others and whether through the ownership of voting securities,as a trustee or executor,by contract or credit arrangement or otherwise. e."Person”means a natural person,a partnership,a joint venture,a corporation,a limited liability company,a limited liability partnership,a trust,an estate,a governmental entity or organization or an unincorporated organization or association. f."Purpose”means the potential development by ATC of one or more electric transmission projects and/or the formation of a transmission-only electric utility in the state of Alaska, and AEA desires to work with third parties,such as ATC,interested in developing energy infrastructure, entities,and systems in Alaska as part of AEA's mission to reduce the cost of energy in Alaska. g."Representative”means any director,officer,member,shareholder,employee, agent,contractor,consultant,advisor or other representative. 3.Identification;Non-Disclosure.ATC shall clearly identify Confidential Information as such. To the extent permitted by law,including the Alaska Public Records Act,and except for using the Confidential Information solely for the Purpose or other uses authorized in this Agreement,AEA shall (a)use the highest standard of care in safeguarding and maintaining the confidentiality of the Confidential Information that AEA uses in safeguarding and maintaining its own confidential information but in any case at least reasonable care;and (b)not disclose the Confidential Information except with ATC's prior written consent or as otherwise specifically permitted in this Agreement. 4.AEA Representatives.AEA may disclose the Confidential Information to AEA's Representatives who need,in AEA's reasonable business judgment,to know the Confidential Information for the Purpose and who have been informed of the confidential nature of the Confidential Information and of the provisions of this Agreement and who have been directed by AEA to treat such Confidential Information in accordance with all the terms and conditions set forth in this Agreement.AEA shall ensure its Representatives'to whom AEA discloses Confidential Information agree to comply with this Agreement.AEA shall promptly advise ATC in writing if it becomes aware of any misappropriation or misuse of the Confidential Information by its Representatives or by any other Person. 5.Exceptions to Confidential Information.Notwithstanding anything in this Agreement to the contrary,the term "Confidential Information”does not include information that:(a)is already known or in the possession of AEA or any of its Representatives,at the time of its disclosure by ATC,provided that the source of such information was not known by AEA or any of its Representatives,to be bound by a confidentiality agreement with,or other contractual,legal or fiduciary obligation to,ATC or any other Person with respect to such information;(b)after the time of disclosure to AEA or any of its Representatives, becomes subsequently available to AEA or such Representative,on a non-confidential basis from a source not known by AEA or such Representative to be bound by a confidentiality agreement with,or other contractual, legal or fiduciary obligation to,ATC or any other party with respect to such information;(c)is or becomes generally available to the public other than as a result of a breach of any confidentiality agreement or other contractual,legal or fiduciary obligation,including this Agreement,by AEA any of its Representatives or (d)is independently developed by AEA or any of its Representatives,without the use,directly or indirectly,of any 2 Confidential Information as evidenced by AEA's written documentation evidencing the same.If only a portion of the Confidential Information of ATC falls under one of the foregoing exceptions,then only that portion will not be deemed Confidential Information. 6.Alaska Public Records Act;and Required Disclosure.In the event that AEA or any of its Representatives receives a request under the Alaska Public Records Act request,a subpoena or other court order,or other legal request or demand for disclosure of the Confidential Information,AEA will provide prompt written notice to ATC of any such request or requirement to enable ATC to protect ATC's interests in the Confidential Information. 7.Confidential Information is the Sole Property of ATC.The Parties agree that as between ATC and AEA all Confidential Information remains the sole property of ATC,nothing in this Agreement restricts,limits or conditions ATC's rights to use or disclose its own Confidential Information in any manner whatsoever and no license or other right (including,but not limited to any intellectual property right)in the Confidential Information is granted by ATC to AEA in this Agreement. 8.Remedies.Each Party agrees and acknowledges that any breach of this Agreement may cause the other Party irreparable harm for which monetary damages would be inadequate.Accordingly,ATC will be entitled to seek injunctive or other equitable relief to remedy any threatened or actual breach of this Agreement by AEA in addition to any other remedies available to ATC at law or in equity. 9.Term.The term of this Agreement commences upon AEA's first receipt of Confidential Information and continues until the earlier to occur of (a)the date it is superseded by terms of a definitive agreement,if any,related to the Purpose that may be entered into between the Parties that contains terms and conditions relating to the confidential treatment of the Confidential Information or (b)three (3)years from the last date of ATC's disclosure to AEA of Confidential!Information. 10.Return of Confidential Information.Upon a written request by ATC for any reason,to the extent permitted by law,including the Alaska Public Records Act,AEA shall,and shall cause any of its Representatives to promptly:(1)deliver to ATC or destroy,as directed by ATC,all Confidential Information in written or hardcopy form or in electronic form furnished to AEA and (2)(i)destroy any copies of such Confidential Information in written or hardcopy form (including any extracts therefrom)and (2)(ii)use commercially reasonable efforts to destroy any copies of Confidential Information in electronic form.Upon receipt of a written request from ATC to certify compliance with this Section,AEA shall cause one of its duly authorized Representatives to certify on its behalf in writing to ATC that the requirements of this Section have been satisfied in full.Notwithstanding AEA's return to ATC and/or destruction of any Confidential Information,AEA will continue to be bound by the terms of this Agreement. 11.No Joint Venture Created.Each Party acknowledges and agrees that this Agreement creates no obligation for ATC to furnish information to AEA.The Parties further acknowledge and agree that:(a) except as expressly provided herein,this Agreement imposes no legal obligation of any kind whatsoever on the other Party with respect to the Purpose,(b)this Agreement does not obligate a Party to deal exclusively with the other Party and (c)this Agreement is not intended to,and shall not be deemed to,create any partnership,joint venture,joint enterprise or business relationship between the Parties,or to authorize or empower either Party to act on behaif of or obligate or bind the other Party.Nothing in this Agreement, expressed or implied,is intended to confer on any third party any rights or remedies under or by reason of this Agreement. 12.Representations and Warranties.Each Party acknowledges and agrees that:(a)none of ATC,its Affiliates or its or their respective Representatives has made or makes any representation or warranty to AEA or any of its Representatives as to the accuracy or completeness of the Confidential information disclosed by ATC and (b)none of ATC,its Affiliates or any of its or their Representatives will have any liability to AEA or any of its Representatives resulting from the use of the Confidential Information disclosed by ATC.Notwithstanding the preceding sentence,ATC represents and warrants that:(1)it has the requisite legal!and,as applicable,contractual authority to disclose to AEA and its Representatives any Confidential Information that it elects to disclose under this Agreement and (2)no confidentiality requirements (contractual or otherwise)prohibit or restrict its disclose of any such Confidential Information pursuant to this Agreement. 13.Assignment or Transfer.Neither Party may assign or otherwise transfer this Agreement or its duties or obligations under this Agreement under any circumstance. 14.Notices.All notices,demandsor other communications required or desired to be given under this Agreement by either Party must be in writing and will only be deemed to have been fully given:(a) upon receipt,if hand delivered;(b}three (3)business days after the deposit thereof at any main branch United Sates Post Office,if sent by United States registered or certified mail,return receipt requested;(c)on the first business day following deposit thereof at the office or drop box of a nationally recognized overnight delivery service,if sent by such service or (d)upon confirmation of receipt,if sent by email,addressed to the Party receiving notice,at the addresses set forth below their signatures on the last page of this Agreement. 15.Governing Law.The laws of the State of Alaska govern the validity,performance and enforcement of this Agreement and the Parties shall resolve any dispute under this Agreement in the Superior Court,Third Judicial District at Anchorage. 16.Interpretation.Whenever the singular number is used,the same shall include the plural. The section headings appearing in this Agreement are inserted only as a matter of convenience and in no way define,limit,construe or describe the scope or intent of such sections or paragraphs of this Agreement or in any way affect this Agreement. 17.Entire Agreement.This document contains the entire Agreement between Parties with respect to the Confidential Information and supersedes all prior agreements and understandings,oral or written,between the Parties with respect to the Confidential Information. 18.Waiver.The failure of either Party to insist on performance of any of the terms and conditions contained in this Agreement or to exercise any right or privilege contained in this Agreement will not be considered a waiver of any such term,condition,right or privilege.No waiver is effective unless reduced to a writing that is executed by both Parties. 19.Severability.If any term or provision of this Agreement is determined to be unenforceable or invalid for any reason,such unenforceability or invalidity will not affect the enforceability or validity of the remainder of this Agreement as long as the economic or legal substance of the transactions contemplated in this Agreement will not change so as to become materially adverse to either Party.Upon a determination that any term or provision of this Agreement is unenforceable or invalid,the Parties shall negotiateingood__ faith to modify this Agreement so that the transactions contemplated in this Agreement are fulfilled ina manner most closely reflecting the Parties'original intent. 20.Counterparts and Electronic Signatures.This Agreement may be executed in any number of counterparts,any or all of which may contain the signature of any one of the Parties and all of which will be construed together as a single instrument.Electronic signatures on this Agreement (or copies of signatures sent by electronic means)are the equivalent of handwritten signatures. 4 In order to evidence their agreement to the provisions of this Agreement,the Parties have executed and delivered this Agreement as of the date set forth in the Preamble. ATC: American Transmission Company LLC By:ATC Management Inc.,its corporate manager By: Printed Name:eae DD NoesTitle:rent, Address for notices: American Transmission Company LLC Attn:Eric Myers P.O.Box 47 Waukesha,Wisconsin 53187-0047 Email:emyers@atcllc.com AEA: Alaska Energy Authority By:relish ArhPrintedName:§Samy Ksnwer Goods Title:GK€cuswe DVeecagvt Address for notices: Alaska Energy Authority Attn:Kirk Warren 813 West Northern Lights Blvd. Anchorage,Alaska 99503 Email:kwarren@aidea.org ALASKA INTERTIE MANAGEMENT COMMITTEE AGENDA Friday,Oct.16,2015 9:00 a.m.-11:00 am Alaska Energy Authority,Board Room 813 W.Northern Lights Boulevard,Anchorage,Alaska 1,CALL TO ORDER 2.ROLL CALL FOR COMMITTEE MEMBERS 3.PUBLIC ROLL CALL 4.AGENDA APPROVAL 5-PUBLIC COMMENTS 6.APPROVAL OF PRIOR MINUTES -Sept 1,2015 7.OLD BUSINESS A.Spin and reserve negotiations update -IOC B.SVC warranty policy update -AEA 8.NEW BUSINESS A.Coordination of reliability standards conformance efforts -Chugach B.Railbelt transmission plan update -AEA 9.REPORTS A.I0C/OPERATORS REPORT -ML&P/GVEA 10.COMMITTEE ASSIGNMENTS 11.NEXT MEETING DATE 12,ADJOURNMENT To participate via teleconference,dial 1-888-585-9008 and use conference room code 467 050 126 Intertie Management Committee Regular meeting MEETING MINUTES Tuesday,September 1,2015 Anchorage,Alaska 1.CALL TO ORDER Chair Joe Griffith called the meeting of the Intertie Management Committee to order on September 1,2015 at 9:00 a.m.A quorum was established. 2.ROLL CALL FOR COMMITTEE MEMBERS Brian Hickey Chugach Electric Association (CEA).**. Cory Borgeson Golden Valley Electric Association (GVEA) Joe Griffith Matanuska Electric Association (MEA);.Gene Therriault Alaska Energy Authority (AEA)- Jeff Warner Anchorage Municipal Ment ¢&Power (ML&>):"ao. 3.PUBLIC ROLL CALL nk?Mtoe' Burke Wick (CEA);Ed Jenkins (MEA);Kirk Warren,Bryan Carey,and Teri Webster (AEA);MarkJohnstonandShalonHarrington(ML&P);Bob Day (Homer,Electric Association (HEA));KirkGibson(McDowell Rackner &Gibson PC);Dave Gillespie(ARCTEC);Allen Gray (GVEA);HenriDale;and Bernie Smith.Noha.ee a NY : 4.AGENDA APPROVAL a eee"-ok va "'EgMOTION:Mr.Hickey made a motion to approve.the 'agenida as presénted Motion seconded by Mr.Borgeson.The agenda \was adopted 3without objection.”a? gl wok5.PUBLIC COMMENTS en weNone«6 0 ye .rn ve?hoe a ».,ae6."APPROVAL OF PRIOR MINUTES "yune 23,2015ee,ee 'eeMOTION:Mr.Therriault made'a motionrs approve the prior minutes of June 23,2015.MotionsecondedbyMr.Borgeson.The'motion was approved unanimously.7.OLD BUSINESS,pe7A.Spin and Reserves Negotiations Update Mr.Dale has been doing work con this topic for a while and Mr.Warner asked if the IMC could pay Mr.Dale for his time under the IMC Administration cost.The estimate for work done in July & August is $17,000.Mr.Hickey suggested to bring this topic to the Railbelt Utilities Group (RUG). Motion:Mr.Hickey made a motion to ask the Railbelt Utility Group to fund Mr.Henri Dale to study the Spin &Reserve issues in the Railbelt,negotiate a solution with the utilities,and bring back the result of such efforts to the IMC.Motion was seconded by Mr.Borgeson.A vote was called and the motion passed unanimously. The IOC gave an update on the negotiations.They are currently looking at dividing the spin 50/50 (load ratio /largest generator).The IOC is close to an agreement with a few qualifiers:percentage of spin allocated to the Railbelt utilities based on percentage of largest unit and largest load;how a shared unit is handled;and does the GSU failures count at the Eklutna generation station. IMC Meeting Minutes-September 1,2015 Page 2 of 2 The contractual and technical documents are being work through. The committee stressed for these negotiations to be successful,it is imperative that all the IOC representatives have full authority to speak on behalf of their utility. The IMC committee asked for a resolution from the IOC be brought to the next meeting for voting. Mr.Griffith will report to the RCA that progress is being made on differing reliability standardsreconciliation. 7B.SVC Warranty Policy update "" neMr.Warren reviewed the procurement rules regarding ;obtaining a 15 year contract or a 25 yearcontractwithAlstomonbehalfoftheIMC.According to the Department of Administration andprocurementrulesAEAcanonlyenterintoacontractuptoafive-year 'term and has a potential toextendthecontractbyfivetermstoequal25years.However,thereis no guarantee that thelegislaturewillnotreappropriatethefundsallocatedtothisproject.NsaML&P indicated that Alstom will be providing a five jyearaf quote within a week.AEA was asked topresentacontractproposalatthenextmeeting."hey ','a me e,ion * 8.REPORTS rn oar 8A.Operators Report ..--._ye "OR,anSB.Intertie Operating committee report *of an *-e _é 'Sons x eMr.Warner gave the Operators and.10¢reports.x.ne NY wok9.COMMITTEE ASSIGNMENTS Nyz°10C to continue spin discussions and bring a resolution to the next IMC meeting.eo:'ML&P to continue to work with Alstom and.AFA regarding the SVC warranty.°My.Warner to update tthe ML&P representatives on the subcommittee member list." we10.NEXT MEETING DATE,'F'aThenextmeetingwill be held October 28,2015.SE AACaMr.Therriault informed the.committee that he will be retiring in October.See Ea 12.ADJOURNMENT There being no further business of the IMC,the meeting adjourned at 10:57 a.m. Joe Griffith,Chairman Gene Therriault,Secretary To obtain an audio of the full meeting,contact Teri Webster (AEA)at 907-771-3074. APPENDIX C -Statement of Services The consultant shall provide services to update the draft railbelt transmission plan dated March 17,2014 (incorporated by referenced).Update to include confirmation of Projects required to meet the criteria contained in the IMC Operating and Reliability Standards dated October 1,2013 (also incorporated by reference),specifically related to the planning standards (TPL)contained therein.Specific TPL contingencies will be agreed upon between consultant and the Authority and outlined prior to draft deliverable (identified below).Economic analysis shall be completed on the host of projects and sensitivities to ascertain the benefits associated with the proposed plans.To the extent possible,and until modified through negotiations, the SOW shall follow closely that which is indicated in the Consultant's submitted proposal dated August 18*, 2015.Upon completion of the final plan,consultant may be asked engage with the stakeholder community as requested to discuss the technical aspects of the plan. Schedule: Work shall commence upon reception by consultant of NTP #1 and shall be completed NLT March 31*,2016 Deliverables: Draft Railbelt Transmission Plan Update (November 30",2015) Final Railbelt Transmission Plan Update (December 31%,2015) In the event that the AEA determines additional services are required,AEA reserves the right to negotiate and add these services by amendment.Additional services must be added by Amendment prior to work being done. bE Contract #16055 Page 6 of 8 ,Ceci Power SystemsfeConsultingEngineers Alaska Energy Authority August 18,2015 813 Northern Lights Blvd Anchorage,Alaska 99503 Att:Mr.Kirk Warren Subject:Railbelt Transmission Plan Final Report Dear Mr.Warren: Electric Power Systems (EPS)is pleased to present a proposal to the Alaska Energy Authority (AEA)to complete the work outlined in the original Scope of Work for the Railbelt Transmission Pian update.In the original Scope of Work,EPS was tasked with developing a transmission plan for the Railbelt utilities,with a limited cost/benefit analysis added after the projects were identified.The original Scope of Work included funds and scope to solicit comments from each of the utilities and interested parties,review the plans and comments from the utilities and interested parties and revise the plan as required. However,the duration of the project extended beyond the contract term and the final phase of the project which included incorporating comments and suggestions from the utilities and other parties was not completed.In addition,the initial plan has generated considerable interest and support from the utilities,the State of Alaska's various departments and other organizations within the state.When the draft transmission plan was originally developed,the Railbelt utilities had not approved a set of planning criteria for the interconnected system.We proposed a limited set of planning criteria that was subsequently adopted by the utilities for the purposes of developing the Draft Plan.However,since the completion of the Draft Plan,the Railbelt utilities have adopted a complete set of Reliability Standards,including Transmission Planning Standards that impact the performance and planning of the system and can potentially impact the projects recommended in the Draft Plan. Per your request,EPS is providing a proposal to update the draft plan using the latest economic and technical models available for the Railbelt system.The update will include confirmation of the projects required to meet the criteria included in the Intertie Management Committee's Railbelt Operating and Reliability Standards dated October 1,2013 specifically for TPL-001. TPL-001 is the primary planning standard that is applicable to the development of the Railbelt Transmission Plan and was unanimously adopted by the Railbelt utilities.TPL-001 closely follows the original planning criteria utilized for the draft plan.However,TPL-001 requires a more extensive analysis of transmission contingencies than was completed for the development of the draft plan.As currently approved,TPL-001 does not allow for wholesale loss of firm customer load for single contingency outages.The original criteria for the development of the Draft Plan mirrors that requirement.However,TPL-001 does not require each utility to plan its portion of the transmission system to accommodate transfers between utility areas other than to the extent that firm sales are to be supported by the transmission system.Under TPL-001, inter-utility sales such as Bradley Lake transfers or transfers of capacity and energy between utility generation plants is not required for planning purposes since all such sales are non-firm transmission system sales.In the Draft Plan,inter-utility sales to support Bradley or other inter- utility transactions were an integral part of the development of the transmission plan and are AEA Proposal Railbelt Transmission Plan -Final Report required to achieve the benefits identified in the draft.Consequently,the requirements for the bulk transmission system development in the Draft Railbelt Transmission Plan is not restricted to utility ownership,but for the interconnected system as a whole. In addition to TPL-001,applicable planning standards TPL-002 and TPL-003 were also unanimously adopted by the Railbelt utilities.TPL-002 outlines the performance requirements of the bulk transmission system following the single contingency loss of a key facility followed by the likely loss of other facilities (N-1-1).The Draft Plan development included limited N-1-1 assessment and evaluation but it was not used for identification of new facilities,but as a check on the system performance using previously identified facilities. The IMC adopted planning criteria identifies TPL-O02 and TL-003 as Class B and Class C contingencies respectively and constitutes events such as breaker-failure,loss of critical substations,loss of double-circuit towers,delayed clearing events etc.In general,the inclusion of such planning criteria will increase the cost of the transmission plan as opposed to reducing the scope of the plan,since the system will be evaluated against additional performance criteria. TPL-002 indicates that the loss of firm customers is acceptable for Class B contingencies, however,the amount of acceptable load loss is not defined within the standard.Considering the weak transmission system in the Railbelt,we propose to evaluate the Class B contingencies with an allowable load loss of 40%of the load in any one area or 25%of the total Railbelt load. These values are proposed for the completion of the study but can be revised prior to the start of the study by AEA or the Railbelt utilities. TPL-003 outlines the performance requirements of the bulk transmission system following the loss of two or more key transmission elements.The draft plan was not developed to comply with Standards TPL-002 or TPLOO3 due to the costs involved in meeting these standards. Similar to TPL-002,the acceptable loss of load was not defined within the standard.We propose the system be constrained to no complete loss of power in any one area or no loss of load exceeding 60%in the total system for Class C contingencies.As with Class B criteria,we expect to have approval from the utilities prior to the commencement of the studies. The transmission assessment outlined in this Scope of Work will meet the requirements of TPL- 001.As contemplated in the IMC planning standards,N-1-1 and N-2 assessments will not be completed on all system components,but rather on portions of the transmission system identified as critical during the Class A contingencies.We will assess the risk to the system of contingencies outlined in TPL-002 and 003,and will identify additional infrastructure required to meet the performance criteria of these standards.These additions will be noted in the cost summary as TPL-002/003 compliant improvements and will not be used in the cost/benefit analysis of the plan. In addition to developing a final plan utilizing the criteria outlined in TPL-001,we will run simulations to identify any changes to the plan in capital costs if the planning criteria were modified to allow up to 10%of the firm load in any one area to be interrupted for any single contingency (Class A)event.This alternative plan will allow the cost of attaining this alternate level of reliability to be compared with the estimated costs of the TPL-001 compliant plan. For each of the transmission plans,TPL-001 compliant and 90%TPL-001 compliant,an economic analysis will be completed to ascertain the benefits of the proposed plans. The proposed Scope of Work is as follows: Transmission Plan -TPL-001 Compliant Plan Transmission Analysis EPS will use the latest Railbelt PSS/E model,including the changes made by EPS for other projects to evaluate the required transmission improvements for load and transfer condition identified in this proposed scope of work.Since the development of the Draft Plan,the Railbelt July 17,2015 Page 2 from be sisConsultingEngineers AEA Proposal Railbelt Transmission Pian -Final Report has completed major changes in generation plant for each of the utilities in Southcentral Alaska. The models associated with the generation additions and changes to the Intertie SVC controls have been tested and incorporated into the most recent version of the Railbelt model.In addition,the as-built models for MEA's new EGS plant will be available and used for the completion of the study.The use of the updated models and characteristics have indicated slightly different results can be expected than what was obtained in the Draft Report. Initially,EPS will confirm the non-firm transfer limits of the Anchorage-Fairbanks transmission system using the new models.These new limits will form the basis of the existing system evaluation. EPS will complete contingency analysis in compliance with TPL-001 for the interconnected Railbelt system.Contingencies will include 115 kV,138 kV and 230 kV transmission lines that serve as part of the main transmission tie between generation or load resources.Transmission lines that serve radial loads or portions of a utility's internal load-serving requirements will not be evaluated. The loss of the largest generation contingency in each generation area will also be evaluated and improvements made to ensure compliance with TPL-001 for firm transmission flows. In order to provide a more direct comparison to the operation of the existing Railbelt system,the non-firm transfer limits following the development of the recommended transmission system will also be determined.The limits of load shed for the non-firm transmission system will approximate the limits experienced in the existing system.An economic evaluation for these transfer limits will be performed for base case load and fuel prices without further sensitivity analyses. The draft one-lines,station ratings,and conceptual line routings for all proposed improvements will be updated.Revised budgetary cost estimates for the improvements will be developed and supporting calculations provided. N-1-1 (Class B)and N-2 (Class C)contingencies involving key components will be evaluated against the TPL-002 and TPL-003 criteria for the compliant plan.For these contingencies, improvements required to meet the criteria will be evaluated and cost estimates completed. However,the cost of the improvements will not be included in the base transmission system improvement cost. Economic Analysis Starting with the then current PROMOD model including corrections,updates and insights from other projects,the latest 2017 system configuration and power flow results will be incorporated into the model.The model will use the estimated utility load models developed by Slater Consulting.The utility loads will be provided to each utility,however,it is not expected that the utility load models will be revised,but rather sensitivity cases with different load models will be completed.The study will utilize the latest fuel forecast developed by Slater Consulting,which will include both 'base'and 'swing'gas.Because of the future uncertainties surrounding utility fuels,a variety of fuel sensitivity analyses will be performed including future gas and oil prices, possible use of LNG in Fairbanks and the potential shutdown of older coal-fired generation. Because the totally integrated transmission system will allow the Railbelt system to be operated as a single pool,rather than as five separate utilities with limited interconnection,there will be a number of differences in the modeling of unit commitment and economic dispatch of the integrated system compared to the existing system.These differences will include the following. e Contingency reserve requirements will be individually carried by the utilities in the existing system case and will be carried by the pool as a whole in the integrated case. In the integrated system case,the thermal generation's use for contingency reserves will be minimized by the use of energy storage devices and hydro generation. July 17,2015 Page 3 pe Nectrc stemslofQyConsultingEngineers YSTEM: AEA Proposal Railbelt Transmission Plan -Final Report e Regulation requirements will be individually carried by the utilities in the existing system case and will be re-estimated on a total pool basis and carried by the pool as a whole in the integrated case. Hydro optimization for the existing system will be performed individually for the utilities using 'ownership'shares of historic monthly energies,while hydro optimization for the integrated system will be estimated by assuming historic monthly hydro usage by the total system by month.{This will still understate the actual benefit of the hydro coordination benefits for the integrated transmission system,since the total amount of hydro to be optimized each month will equal the total historical hydro used by the individual utilities.This is in lieu of optimizing the hydro used each month for the entire grid over the course of an annual water cycle,which would prove to be too time consuming to be performed in every sensitivity case.}In order to show the amount of understatement involved,a complete annual optimization will also be performed for the integrated system with base case data but it will not be completed for the sensitivity cases. The existing system economic dispatch will utilize a system with shared contingency reserves, limited only by existing transmission constraints.For instance,contingency reserves between AML&P,Chugach and MEA will be essentially unconstrained and treated as a single pool. Contingency Reserves between the Anchorage and Kenai areas and the Anchorage and Fairbanks areas will be constrained by the transfer limits of the existing transmission system and the contingency reserve requirement over the lines. Sensitivity Cases As mentioned above,variations in load forecasts and fuel price forecasts will be evaluated by running sensitivity cases.These sensitivity cases will be defined in a balanced manner.For example,for each base case scenario,sensitivities for a high load case and a low load case will be evaluated for comparison.A similar balanced approach will also be used for the evaluation of fuel price variations. Modified TPL-001 Compliant System Transmission System In order to assess the incremental cost of improving the reliability of the Railbelt transmission system,the transmission plan will be evaluated with a modified reliability criteria that allows 10% of an area's firm load to be interrupted for any single contingency.Since most of the improvements are required for firm power transfer between areas,the difference in transmission improvements between a TPL-001 compliant and a non-compliant system limited to 10%load shed is expected to be minimal.We will attempt to identify if any improvements can be deferred or reduced in scope from the TPL-001 compliant system. The Non-Compliant system will be evaluated with key contingencies that drove improvements in the compliant system.Unless additional contingencies are warranted,the non-compliant system will not be evaluated with the complete set of contingencies used to develop the TPL- 001 compliant system. Economic Evaluation -Modified TL-001 The economic evaluation for the Modified TPL-001 system will be completed using the same procedures and methodology as the TPL-001 compliant system.If transfer levels remain the same,we will assume the economic benefit does not change in the evaluation.If transfer levels between areas change from the compliant system,we will complete the economic evaluation for the new system. July 17,2015 Page 4 bn.Ry,QiectrcPeerSsterConsultingEngineers<><,YSTEM: lOC /Operator Report 10/16/15 1.Alaska Intertie Status Report a.2015 MWH Usage at Douglas Substation i.First quarter:142,077 MWH ii.Second quarter :118,397 MWH iii.Third quarter:93,528 MWH iv.October to date:8,768 MWH 2.System operation a.No Intertie trips third quarter 2015 3.Snow Load Monitoring System a.SMLS lost communication with several towers when AT&T upgraded from 2G to 4G. i.Verizon indicates they have coverage in the area and they are working with EPS for a permanent fix. 4.Compliance Report a.None 5.Alaska Intertie SVC update a.Teeland,Healy and Gold Hill SVC in service. b.September software upgrades installed and tested successfully at all sites. i.Software upgrade corrected issue related to UV trips. 6.Intertie Operating Committee a.Meeting regularly to develop new spinning reserve allocation and reconcile standards between the AIARS and RRO. 7.Machine Ratings Subcommittee a.Update MRSC online data base 8.Operations,Maintenance and Scheduling Subcommittee 9.Dispatch and System Operations Subcommittee a.Review Operating and Reliability Standards b.Review and provide compliance reporting methodology 10.Budget Subcommittee 11.Engineering,relay and Reliability Subcommittee a.Update the Intertie Operating procedures b.Review Douglas Substation Protection Upgrade Project -interim protection upgrade,add 311B c.Make recommendation to prevent back feed between Stevens and Douglas through MEA distribution system 12.System Studies Subcommittee a.UFLS Study 13.SCADA and Telecommunications Subcommittee a.Review and make recommendation -SLMS communication ALASKA ENERGY AUTHORITY Intertie Management Committee gf” IMC:Oct 16,2015 x &Be.omWN?Ag a AY Qh a Ropesel :Henn For ;;;Roll Call \PI enda |Minutes 'up :tok 4+Future bills'oll call from top to bottom ending with Chair Fe Yes No Yes No Yes No Yes No Yes No Golden Valley Electric Association "”WA Matanuska Electric Association "Y " Alaska Energy Authority uw wa " Municipal Light &Power "Uv a" Chugach Electric Association YW uw Roll call from top to bottom ending with Chair Yes No Yes No Yes No Yes No Yes No Golden Valley Electric Association Matanuska Electric Association Alaska Energy Authority Municipal Light &Power Chugach Electric Association Next Meeting: ATTENDANCE -IMC Oct 16,2015,9 am :Phone COMMITTEE MEMBERS ALTERNATE |Brian Hickey CEA Burke Wick -|Jeff Warner MLP Mark Johnston 1 Gene Therriault,Secretary/Treasurer AEA Sara Ftsher-Goad Pama Cory Borgeson GVEA Allen Gray -|Evan "Joe”Griffith,Chairman MEA Gary Kuhn _Public Members COUNSELvvBernieSmith-_|Kirk Gibson,McDowell Rackner & |Bob Day-HEA Gibson PC gcienei Pale J.BrianBjorkauiet-DEptOTLamae\Pave Buc lingane./ \|Nea Tentang Men| AEA Staff -|Jocelyn Garner Crystal Ealdmer ArhMeHutchinson +? Teri Webster wate GilleAae:' v |Kirk Warren Avone.erdiondan Y\UP 5S VARSmaver 4 AdA Anna Pendersan %o Arowe eMail)Jer IMC MLEP Urysto OWA Dusiness &poli BS)Pealler on \efe end is AY ingDeIetterTorhelrep ALASKA INTERTIE MANAGEMENT COMMITTEE MEETING Friday,Oct.16,2015 9:00 AM **PLEASE WRITE LEGIBLY** NAME Organization BERWME SN TA "|faba' AQ Le rls \4 UCHRSCnnirHalddre/ADD 4 AEAMawenSor|RE AKK oti eveLowenNawer/|VAR Auda|auren Daan 4 DAA Mattlew uhiffases "|_UAA Scoft Deletos /|OAK Cegh?Pn K vest /|APA(AIS YR _Lpostetijow YL APA/ALE Orey Kuhn v ME} Bol bey /eA S6@WMA Garase /ANCA BORA WUE./|CéA BRIAKE WICKLE |c2#A Daud (alles pre A AR CT BS 6B APPENDIX C -Statement of Services The consultant shall provide services to update the draft railbelt transmission plan dated March 17",2014 (incorporated by referenced).Update to include confirmation of Projects required to meet the criteria contained in the IMC Operating and Reliability Standards dated October 1,2013 (also incorporated by reference),specifically related to the planning standards (TPL)contained therein.Specific TPL contingencies will be agreed upon between consultant and the Authority and outlined prior to draft deliverable (identified below).Economic analysis shall be completed on the host of projects and sensitivities to ascertain the benefits associated with the proposed plans.To the extent possible,and until modified through negotiations, the SOW shall follow closely that which is indicated in the Consultant's submitted proposal dated August 18*, 2015.Upon completion of the final plan,consultant may be asked engage with the stakeholder community as requested to discuss the technical aspects of the plan. Schedule: Work shall commence upon reception by consultant of NTP #1 and shall be completed NLT March 31*,2016 Deliverables: Draft Railbelt Transmission Plan Update (November 30",2015) Final!Railbelt Transmission Plan Update (December 315,2015) In the event that the AEA determines additional services are required,AEA reserves the right to negotiate and add these services by amendment.Additional services must be added by Amendment prior to work being done. Contract #16055 Page 6 of 8 fy "=.SYSTEMS Alaska Energy Authority August 18,2015 813 Northern Lights Blvd Anchorage,Alaska 99503 Att:Mr.Kirk Warren Subject:Railbelt Transmission Plan Final Report Dear Mr.Warren: Electric Power Systems (EPS)is pleased to present a proposal to the Alaska Energy Authority (AEA)to complete the work outlined in the original Scope of Work for the Railbelt Transmission Plan update.In the original Scope of Work,EPS was tasked with developing a transmission plan for the Railbelt utilities,with a limited cost/benefit analysis added after the projects were identified.The original Scope of Work included funds and scope to solicit comments from each of the utilities and interested parties,review the plans and comments from the utilities and interested parties and revise the plan as required. However,the duration of the project extended beyond the contract term and the final phase of the project which included incorporating comments and suggestions from the utilities and other parties was not completed.In addition,the initial plan has generated considerable interest and support from the utilities,the State of Alaska's various departments and other organizations within the state.When the draft transmission plan was originally developed,the Railbelt utilities had not approved a set of planning criteria for the interconnected system.We proposed a limited set of planning criteria that was subsequently adopted by the utilities for the purposes of developing the Draft Plan.However,since the completion of the Draft Plan,the Railbelt utilities have adopted a complete set of Reliability Standards,including Transmission Planning Standards that impact the performance and planning of the system and can potentially impact the projects recommended in the Draft Plan. Per your request,EPS is providing a proposal to update the draft plan using the latest economic and technical models available for the Railbelt system.The update will include confirmation of the projects required to meet the criteria included in the Intertie Management Committee's Railbelt Operating and Reliability Standards dated October 1,2013 specifically for TPL-001. TPL-001 is the primary planning standard that is applicable to the development of the Railbelt Transmission Plan and was unanimously adopted by the Railbelt utilities.TPL-001 closely follows the original planning criteria utilized for the draft plan.However,TPL-001 requires a more extensive analysis of transmission contingencies than was completed for the development of the draft plan.As currently approved,TPL-001 does not allow for wholesale loss of firm customer load for single contingency outages.The original criteria for the development of the Draft Plan mirrors that requirement.However,TPL-001 does not require each utility to plan its portion of the transmission system to accommodate transfers between utility areas other than to the extent that firm sales are to be supported by the transmission system.Under TPL-001, inter-utility sales such as Bradley Lake transfers or transfers of capacity and energy between utility generation plants is not required for planning purposes since all such sales are non-firm transmission system sales.In the Draft Plan,inter-utility sales to support Bradley or other inter- utility transactions were an integral part of the development of the transmission plan and are AEA Proposal Railbelt Transmission Plan -Final Report required to achieve the benefits identified in the draft.Consequently,the requirements for the bulk transmission system development in the Draft Railbelt Transmission Plan is not restricted to utility ownership,but for the interconnected system as a whole. In addition to TPL-001,applicable planning standards TPL-002 and TPL-003 were also unanimously adopted by the Railbelt utilities.TPL-002 outlines the performance requirements of the bulk transmission system following the single contingency loss of a key facility followed by the likely loss of other facilities (N-1-1).The Draft Plan development included limited N-1-1 assessment and evaluation but it was not used for identification of new facilities,but as a check on the system performance using previously identified facilities. The IMC adopted planning criteria identifies TPL-002 and TL-003 as Class B and Class C contingencies respectively and constitutes events such as breaker-failure,loss of critical substations,loss of double-circuit towers,delayed clearing events etc.In general,the inclusion of such planning criteria will increase the cost of the transmission plan as opposed to reducing the scope of the plan,since the system will be evaluated against additional performance criteria. TPL-002 indicates that the loss of firm customers is acceptable for Class B contingencies, however,the amount of acceptable load loss is not defined within the standard.Considering the weak transmission system in the Railbelt,we propose to evaluate the Class B contingencies with an allowable load loss of 40%of the load in any one area or 25%of the total Railbelt load. These values are proposed for the completion of the study but can be revised prior to the start of the study by AEA or the Railbelt utilities. TPL-003 outlines the performance requirements of the bulk transmission system following the loss of two or more key transmission elements.The draft plan was not developed to comply with Standards TPL-002 or TPLOO3 due to the costs involved in meeting these standards. Similar to TPL-002,the acceptable loss of load was not defined within the standard.We propose the system be constrained to no complete loss of power in any one area or no loss of load exceeding 60%in the total system for Class C contingencies.As with Class B criteria,we expect to have approval from the utilities prior to the commencement of the studies. The transmission assessment outlined in this Scope of Work will meet the requirements of TPL- 001.As contemplated in the IMC planning standards,N-1-1 and N-2 assessments will not be completed on all system components,but rather on portions of the transmission system identified as critical during the Class A contingencies.We will assess the risk to the system of contingencies outlined in TPL-002 and 003,and will identify additional infrastructure required to meet the performance criteria of these standards.These additions will be noted in the cost summary as TPL-002/003 compliant improvements and will not be used in the cost/benefit analysis of the plan. In addition to developing a final plan utilizing the criteria outlined in TPL-001,we will run simulations to identify any changes to the plan in capital costs if the planning criteria were modified to allow up to 10%of the firm load in any one area to be interrupted for any single contingency (Class A)event.This alternative plan will allow the cost of attaining this alternate level of reliability to be compared with the estimated costs of the TPL-001 compliant plan. For each of the transmission plans,TPL-001 compliant and 90%TPL-001 compliant,an economic analysis will be completed to ascertain the benefits of the proposed plans. The proposed Scope of Work is as follows: Transmission Plan -TPL-001 Compliant Plan Transmission Analysis EPS will use the latest Railbelt PSS/E model,including the changes made by EPS for other projects to evaluate the required transmission improvements for load and transfer condition identified in this proposed scope of work.Since the development of the Draft Plan,the Railbelt July 17,2015 Page 2 AEA Proposal Railbelt Transmission Plan -Final Report has completed major changes in generation plant for each of the utilities in Southcentral Alaska. The models associated with the generation additions and changes to the Intertie SVC controls have been tested and incorporated into the most recent version of the Railbelt model.In addition,the as-built models for MEA's new EGS plant will be available and used for the completion of the study.The use of the updated models and characteristics have indicated slightly different results can be expected than what was obtained in the Draft Report. Initially,EPS will confirm the non-firm transfer limits of the Anchorage-Fairbanks transmission system using the new models.These new limits will form the basis of the existing system evaluation. EPS will complete contingency analysis in compliance with TPL-001 for the interconnected Railbelt system.Contingencies will include 115 kV,138 kV and 230 kV transmission lines that serve as part of the main transmission tie between generation or load resources.Transmission lines that serve radial loads or portions of a utility's internal load-serving requirements will not be evaluated. The loss of the largest generation contingency in each generation area will also be evaluated and improvements made to ensure compliance with TPL-001 for firm transmission flows. In order to provide a more direct comparison to the operation of the existing Railbelt system,the non-firm transfer limits following the development of the recommended transmission system will also be determined.The limits of load shed for the non-firm transmission system will approximate the limits experienced in the existing system.An economic evaluation for these transfer limits will be performed for base case load and fuel prices without further sensitivity analyses. The draft one-lines,station ratings,and conceptual line routings for all proposed improvements will be updated.Revised budgetary cost estimates for the improvements will be developed and supporting calculations provided. N-1-1 (Class B)and N-2 (Class C)contingencies involving key components will be evaluated against the TPL-002 and TPL-003 criteria for the compliant plan.For these contingencies, improvements required to meet the criteria will be evaluated and cost estimates completed. However,the cost of the improvements will not be included in the base transmission system improvement cost. Economic Analysis Starting with the then current PROMOD model including corrections,updates and insights from other projects,the latest 2017 system configuration and power flow results will be incorporated into the model.The model will use the estimated utility load models developed by Slater Consulting.The utility loads will be provided to each utility,however,it is not expected that the utility load models will be revised,but rather sensitivity cases with different load models will be completed.The study will utilize the latest fuel forecast developed by Slater Consulting,which will include both 'base'and 'swing'gas.Because of the future uncertainties surrounding utility fuels,a variety of fuel sensitivity analyses will be performed including future gas and oil prices, possible use of LNG in Fairbanks and the potential shutdown of older coal-fired generation. Because the totally integrated transmission system will allow the Railbelt system to be operated as a single pool,rather than as five separate utilities with limited interconnection,there will be a number of differences in the modeling of unit commitment and economic dispatch of the integrated system compared to the existing system.These differences will include the following. e Contingency reserve requirements will be individually carried by the utilities in the existing system case and will be carried by the pool as a whole in the integrated case. In the integrated system case,the thermal generation's use for contingency reserves will be minimized by the use of energy storage devices and hydro generation. July 17,2015 Page 3 AEA Proposal Railbelt Transmission Plan -Final Report e Regulation requirements will be individually carried by the utilities in the existing system case and will be re-estimated on a total poo!basis and carried by the pool as a whole in the integrated case. Hydro optimization for the existing system will be performed individually for the utilities using 'ownership'shares of historic monthly energies,while hydro optimization for the integrated system will be estimated by assuming historic monthly hydro usage by the total system by month.{This will still understate the actual benefit of the hydro coordination benefits for the integrated transmission system,since the total amount of hydro to be optimized each month will equal the total historical hydro used by the individual utilities.This is in lieu of optimizing the hydro used each month for the entire grid over the course of an annual water cycle,which would prove to be too time consuming to be performed in every sensitivity case.}In order to show the amount of understatement involved,a complete annual optimization will also be performed for the integrated system with base case data but it will not be completed for the sensitivity cases. The existing system economic dispatch will utilize a system with shared contingency reserves, limited only by existing transmission constraints.For instance,contingency reserves between AML&P,Chugach and MEA will be essentially unconstrained and treated as a single pool. Contingency Reserves between the Anchorage and Kenai areas and the Anchorage and Fairbanks areas will be constrained by the transfer limits of the existing transmission system and the contingency reserve requirement over the lines. Sensitivity Cases As mentioned above,variations in load forecasts and fuel price forecasts will be evaluated by running sensitivity cases.These sensitivity cases will be defined in a balanced manner.For example,for each base case scenario,sensitivities for a high load case and a low load case will be evaluated for comparison.A similar balanced approach will also be used for the evaluation of fuel price variations. Modified TPL-001 Compliant System Transmission System In order to assess the incremental cost of improving the reliability of the Railbelt transmission system,the transmission plan will be evaluated with a modified reliability criteria that allows 10% of an area's firm load to be interrupted for any single contingency.Since most of the improvements are required for firm power transfer between areas,the difference in transmission improvements between a TPL-001 compliant and a non-compliant system limited to 10%load shed is expected to be minimal.We will attempt to identify if any improvements can be deferred or reduced in scope from the TPL-001 compliant system. The Non-Compliant system will be evaluated with key contingencies that drove improvements in the compliant system.Unless additional contingencies are warranted,the non-compliant system will not be evaluated with the complete set of contingencies used to develop the TPL- 001 compliant system. Economic Evaluation -Modified TL-001 The economic evaluation for the Modified TPL-001 system will be completed using the same procedures and methodology as the TPL-001 compliant system.If transfer levels remain the same,we will assume the economic benefit does not change in the evaluation.If transfer levels between areas change from the compliant system,we will complete the economic evaluation for the new system. July 17,2015 Page 4 O'R Clete asters ALASKA INTERTIE MANAGEMENT COMMITTEE AGENDA Friday,Oct.16,2015 9:00 a.m.11:00 am Alaska Energy Authority,Board Room 813 W.Northern Lights Boulevard,Anchorage,Alaska 1.CALL TO ORDER 2.ROLL CALL FOR COMMITTEE MEMBERS 3.PUBLIC ROLLCALL 4.AGENDA APPROVAL 5.PUBLIC COMMENTS 6.APPROVAL OF PRIOR MINUTES --Sept 1,2015 7.OLD BUSINESS A.Spin and reserve negotiations update -IOC B.SVC warranty policy update -AEA 8.NEW BUSINESS A.Coordination of reliability standards conformance efforts -Chugach B._Railbelt transmission plan update -AEA 9.REPORTS A.IOC/OPERATORS REPORT -ML&P/GVEA 10.COMMITTEE ASSIGNMENTS 11.NEXT MEETING DATE 12,ADJOURNMENT To participate via teleconference,dial 1-888-585-9008 and use conference room code 467 050 126 1IOC /Operator Report 10/16/15 1.Alaska Intertie Status Report a.2015 MWH Usage at Douglas Substation i.First quarter:142,077 MWH ii.Second quarter :118,397 MWH iii.Third quarter:93,528 MWH iv.October to date:8,768 MWH 2.System operation a.No Intertie trips third quarter 2015 3.Snow Load Monitoring System a.SMLS lost communication with several towers when AT&T upgraded from 2G to 4G. i.Verizon indicates they have coverage in the area and they are working with EPS for a permanent fix. 4.Compliance Report a.None 5.Alaska Intertie SVC update a.Teeland,Healy and Gold Hill SVC in service. b.September software upgrades installed and tested successfully at all sites. i.Software upgrade corrected issue related to UV trips. 6.Intertie Operating Committee a.Meeting regularly to develop new spinning reserve allocation and reconcile standards between the AIARS and RRO. 7.Machine Ratings Subcommittee a.Update MRSC online data base 8.Operations,Maintenance and Scheduling Subcommittee 9.Dispatch and System Operations Subcommittee a.Review Operating and Reliability Standards b.Review and provide compliance reporting methodology 10.Budget Subcommittee 11.Engineering,relay and Reliability Subcommittee a.Update the Intertie Operating procedures b.Review Douglas Substation Protection Upgrade Project-interim protection upgrade,add 311B c.Make recommendation to prevent back feed between Stevens and Douglas through MEA distribution system 12.System Studies Subcommittee a.UFLS Study 13.SCADA and Telecommunications Subcommittee a.Review and make recommendation -SLMS communication ALASKA INTERTIE MANAGEMENT COMMITTEE AGENDA Friday,Oct.16,2015 9:00 a.m.-11:00 am Alaska Energy Authority,Board Room 813 W.Northern Lights Boulevard,Anchorage,Alaska 1.CALL TO ORDER 2.ROLL CALL FOR COMMITTEE MEMBERS 3.PUBLIC ROLL CALL 4.AGENDA APPROVAL 5-PUBLIC COMMENTS 6.APPROVAL OF PRIOR MINUTES --Sept 1,2015 7.OLD BUSINESS A.Spin and reserve negotiations update -IOC B.SVC warranty policy update -AEA 8.NEW BUSINESS A.Coordination of reliability standards conformance efforts -Chugach B._Railbelt transmission plan update -AEA 9.REPORTS A.I0C/OPERATORS REPORT -ML&P/GVEA 10.COMMITTEE ASSIGNMENTS 1.NEXT MEETING DATE Wey-ee co f char 2-3usks 12,ADJOURNMENT To participate via teleconference,dial 1-888-585-9008 and use conference room code 467 050 126 6.Intertie Operating Committee a.Meeting regularly to develop new spinning reserve allocation and reconcile standards between the AIARS and RRO. 7.Machine Ratings Subcommittee a.Update MRSC online data base 8.Operations,Maintenance and Scheduling Subcommittee 9.Dispatch and System Operations Subcommittee a.Review Operating and Reliability Standards b.Review and provide compliance reporting methodology 10.Budget Subcommittee 11.Engineering,relay and Reliability Subcommittee a.Update the Intertie Operating procedures b.Review Douglas Substation Protection Upgrade Project -interim protection upgrade,add 311B c.Make recommendation to prevent back feed between Stevens and Douglas through MEA distribution system 12.System Studies Subcommittee a.urtsstudy unlin Reg joad sheol 13.SCADA and Telecommunications Subcommittee a.Review and make recommendation -SLMS communication 10C /Operator Report 10/16/15 1.Alaska Intertie Status Report a.2015 MWH Usage at Douglas Substation i.First quarter:142,077 MWH ii.Second quarter :118,397 MWH iii.Third quarter:93,528 MWH iv.October to date:8,768 MWH 2.System operation a.No Intertie trips third quarter 2015 3.Snow Load Monitoring System a.SMLS lost communication with several towers when AT&T upgraded from 2G to AG. i.Verizon indicates they have coverage in the area and they are working with EPS for a permanent fix. 4.Compliance Report a.None 5.Alaska Intertie SVC update a.Teeland,Healy and Gold Hill SVC in service. b.September software upgrades installed and tested successfully at all sites. i.Software upgrade corrected issue related to UV trips. Intertie Management Committee Regular meeting MEETING MINUTES Tuesday,September 1,2015 Anchorage,Alaska 1.CALL TO ORDER Chair Joe Griffith called the meeting of the Intertie Management Committee to order on September 1,2015 at 9:00 a.m.A quorum was established. 2.ROLL CALL FOR COMMITTEE MEMBERS Brian Hickey Chugach Electric Association (CEA) Cory Borgeson Golden Valley Electric Association (GVEA) Joe Griffith Matanuska Electric Association (MEA)© Gene Therriault Alaska Energy Authority (AEA) Jeff Warner Anchorage Municipal Light &Power (ML&P). 3.PUBLIC ROLL CALL Burke Wick (CEA);Ed Jenkins (MEA);Kirk Warren,Bryan Carey,and Teri Webster (AEA);MarkJohnstonandShalonHarrington(ML&P);Bob Day (Homer Electric Association (HEA));KirkGibson(McDowell Rackner &Gibson RO Dave Gillespie (ARCTEC)Allen Gray (GVEA);HenriDale;and Bernie Smith.aa:. 4.AGENDA APPROVAL MOTION:Mr.Hickey'made anmotion to approve theagenda as presented Motion seconded by Mr.Borgeson.The agenda wwass adopted wwithout objection.5.PUBLIC COMMENTS :None on 6."APPROVAL OF PRIOR MINUTES -June 23,2015MOTION:Mr.Therriault made a motionnto approve the prior minutes of June 23,2015.MotionsecondedbyMr.Borgeson.The motion was approved unanimously. 7.OLDBUSINESS 7A.Spin and Reserves Negotiations Update Mr.Dale has been doing work on this topic for a while and Mr.Warner asked if the IMC could pay Mr.Dale for his time under the IMC Administration cost.The estimate for work done in July & August is $17,000.Mr.Hickey suggested to bring this topic to the Railbelt Utilities Group (RUG). Motion:Mr.Hickey made a motion to ask the Railbelt Utility Group to fund Mr.Henri Dale to study the Spin &Reserve issues in the Railbelt,negotiate a solution with the utilities,and bring back the result of such efforts to the IMC.Motion was seconded by Mr.Borgeson.A vote was called and the motion passed unanimously. The IOC gave an update on the negotiations.They are currently looking at dividing the spin 50/50 (load ratio /largest generator).The IOC is close to an agreement with a few qualifiers:percentage of spin allocated to the Railbelt utilities based on percentage of largest unit and largest load;how a shared unit is handled;and does the GSU failures count at the Eklutna generation station. IMC Meeting Minutes-September 1,2015 Page 2 of 2 The contractual and technical documents are being work through. The committee stressed for these negotiations to be successful,it is imperative that all the IOC representatives have full authority to speak on behalf of their utility. The IMC committee asked for a resolution from the IOC be brought to the next meeting for voting. Mr.Griffith will report to the RCA that progress is being made on differing reliability standards reconciliation. 7B.SVC Warranty Policy update Mr.Warren reviewed the procurement rules regarding obtaining a 15 year contract or a 25 year contract with Alstom on behalf of the IMC.According to the Department of Administration and procurement rules AEA can only enter into a contract up to a five-year term and has a potential to extend the contract by five terms to equal 25 years.However,thereis no guarantee that the legislature will not reappropriate the funds allocated to this project. ML&P indicated that Alstom will be providing a five year quote within a week.AEA was asked to present a contract proposal at the next meeting. 8.REPORTS 8A.Operators Report...8B._Intertie Operating committee report Mr.Warner gave the Operators and IOC reports. 9.COMMITTEE ASSIGNMENTS |, e JOC to continue spin discussions and bring a resolution to the next IMC meeting. e ML&P to continue to work with Alstom and AEA regarding the SVC warranty. e Mr.Warner to update the ML&P representatives on the subcommittee member list. 10.NEXT MEETING DATE The next meeting will be held October 28,2015. Mr.Therriault informed the committee that he will be retiring in October. 12,ADJOURNMENT There being no further business of the IMC,the meeting adjourned at 10:57 a.m. Joe Griffith,Chairman Gene Therriault,Secretary To obtain an audio of the full meeting,contact Teri Webster (AEA)at 907-771-3074. From:Bjorkquist,Brian D (LAW)<brian.bjorkquist@alaska.gov> Sent:Thursday,October 01,2015 9:02 AM To:Teri Webster;Sara Fisher-Goad Cc:Macsalka,Mary Lynn (LAW);Juday,Jerry H (LAW) Subject:RE:IMC meeting Mary Lynn &|are both scheduled to be on leave the 16«.Jerry Juday is available for AG support if needed/desired. Brian Bjorkquist Senior Assistant Attorney General Labor and State Affairs (907)269-5150 -direct (907)258-4978 -fax CONFIDENTIAL ATTORNEY CLIENT COMMUNICATION/ATTORNEY WORK PRODUCT This e-mail message contains confidential information.If you received this message in error,please notify the sender immediately. From:Teri Webster [mailto:twebster@aidea.org] Sent:Monday,September 28,2015 11:30 AM To:Allen Gray;Bernie Smith;Day,Bob;Bjorkquist,Brian D (LAW);Brian Hickey;Wick,Burke;Owens,Connie;Cory Borgeson;Dawn M.Baham;Divina Portades;Gary Kuhn;Therriault,Eugene P (AIDEA);henri@hdalellc.com;Jeff Warner; Garner,Jocelyn B (AIDEA);Joe Griffith;Foutz,John;Johnson,Mark;Karen Day;Beale,Katherine G (AIDEA);Veech,Kelli L (AIDEA);Kirk Gibson (kirk@med-law.com);Warren,Kirk H (AIDEA);Davidovics,Linda;Mark Johnston -MLP;Susan Redlin;Patch,T W (RCA);Warren Keogh;Fishergoad,Sara L (AIDEA);David Gillespie Cc:Johnston,Mark A.;Warner,Jeff A. Subject:IMC meeting When:Friday,October 16,2015 9:00 AM-11:00 AM (UTC-09:00)Alaska. Where:AEA Board room We have to change dates due to the NWPPA Electric Utilities conference happening this same time. Intertie Management Committee Meeting -Alaska Online Public Notices Page 1 of 1 STATUS:Active Intertie Management Committee Meeting ALASKA ENERGY AUTHORITY Regular Meeting Intertie ManagementCommittee The Intertie Management Committee will holda meeting on Friday,October 16,2015 at 9:00 a.m.For additional information contactTeri Webster at (907)771-3074. This meeting will be conducted byelectronic media pursuant to AS 44.83.040(b)and AS 44.62.310 at the followinglocation: Alaska Energy Authority Board Conference Room 813 West Northern LightsBoulevard Anchorage,Alaska A teleconference line has been set up forthose unable to attend in person.Diall-888-585-9008,Enter conference room 467 050 126. The public is invited to attend.The Stateof Alaska (AEA)complies with Title I]of the Americans with Disabilities Actof 1990.Disabled persons requiring special modifications to participate shouldcontact AEA staff at (907)771-3074 to make arrangements. Attachments,History,Details Attachments Details None Department:Commerce,Community andEconomicDevelopment Revision History Category:Public Notices Created 10/9/2015 9:41:21 AM by tawebster Sub-Category:Advisory Committee Meeting Location(s):Statewide Project/Regulation #: Publish Date:10/9/2015 Archive Date:10/17/2015 Events/Deadlines: https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=1 78567 10/9/2015 BPMC or IMC meeting availability Burke Wh2-UIT9 IMC in aw GVEA ML&P CEA MEA \Seward/|NEA /|AEA 10/26 No No 6\U Ok /\/ 10/27 Ok OC |36-3 eo |OK \/XN. 10/28 Ok ok |Rye]Ok X '\f 10/29 Meeting ok No8:30-9:30 |oe ow /\WU wae 10/30 ok ov ot ok i \ V x !BPMC y UYayy xen oyGVEAML&PY |CEA gyA7T MEA Seward _|HEA Az 11/17 ok ok |ok Ok ot of |o«11/18 Ok No A Ok no Abe |ATS of 11/19 Ok o-oo"|ot ok ow ATC ou. 11/20 ok Ole OY'Ok OW |Sec Hie]ole Mace Joh nst™m