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HomeMy WebLinkAbout08.18.2017 IMC minutesAlaska Intertie Management Committee Regular Meeting MEETING MINUTES Friday, August 18, 2017 Anchorage, Alaska 1. CALL TO ORDER Chairman Mark Johnston called the meeting of the Intertie Management Committee to order on August 18, 2017 at 9:00 a.m. 2. ROLL CALL FOR COMMITTEE MEMBERS Brian Hickey Chugach Electric Association (CEA) Cory Borgeson Golden Valley Electric Association (GVEA) Tony Izzo Matanuska Electric Association (MEA) Kirk Warren Alaska Energy Authority (AEA) Mark Johnston Anchorage Municipal Light & Power (ML&P) 3. PUBLIC ROLL CALL Burke Wick, Mark Johnson (CEA); Gary Kuhn, David Pease (MEA); Jeff Warner (ML&P); Larry Jorgensen, Bob Day (HEA); Michael Lamb, David Lockard, Teri Webster, Jocelyn Garner, Brandi White, Jessica Houston, Amy Adler (AEA); Dan Bishop, Ron Wolff (GVEA); John Foutz (City of Seward); Kirk Gibson (McDowell Rackner & Gibson PC); Brian Bjorkquist (Dept. of Law); James Layne (RCA); Bernie Smith, TW Patch, Henry Dale (Public); 4. AGENDA APPROVAL MOTION: Mr. Izzo asked to add a Douglas Substation Upgrade Summary to the agenda. Mr. Borgeson made a motion to approve the agenda. Motion was seconded by Mr. Izzo. The motion passed unanimously. 5. PUBLIC COMMENTS None 6. APPROVAL OF PRIOR MEETING MINUTES – June 28, 2017 MOTION: Mr. Borgeson made a motion to approve the minutes as presented. Motion seconded by Mr. Warren. The motion passed unanimously. 7. NEW BUSINESS A. Annual Election of Officers MOTION: Mr. Borgeson made a motion to keep the same slate of officers for the next year with Mr. Johnston being the Chair and Mr. Hickey being the Vice-Chair. Motion seconded by Mr. Izzo. The motion passed unanimously. B. Douglas Substation Memorandum of Agreement A First Amendment to the 2016 Utility MOA for the Douglas Substation was presented to the IMC to clarify the mechanism for collection and payment to MEA for their expenses for construction and project August 18, 2017 IMC Meeting Minutes Page 2 of 3 management. The IOC recommended to have AEA include these expenses in their normal IMC billing practices to all the utilities. The Amendment to the MOA adds a subsection to Article II Section 3 “Project Cost Responsibility”. This will not change the allocation of costs to the budget, however an amendment to the budget will be made later in the meeting. MOTION: Mr. Hickey made a motion to approve Resolution 17-02. Motion seconded by Mr. Warren. The motion passed unanimously. MOTION: Mr. Warren made a motion to amend the FY18 Budget to include $566,476 for Douglas Substation work. Motion seconded by Mr. Borgeson. Mr. Warren stated the cost allocation in the MOA is 70% for transmission and 30% for distribution. The $566,476 was the estimated cost of the transmission of the work for the substation based off the original cost estimate in 2016 and this is now being added to the IMC monthly billings and will be split four ways. Ms. Garner stated in the normal monthly bills there will be a new line for the cost of improvements and will be spread out for the rest of the fiscal year for $14,161 a month. Mr. Kuhn stated the cost estimate was from the original engineer’s estimate. Based upon actual bids there are some additional costs of $156,000 that were not included in the $566K. This reflect a 9% project variance and the payment for these additional costs will calculated in the year-end pay out. A vote was called and the motion passed unanimously. C. Intertie Budget Process Presentation At the last IMC meeting the committee asked for an explaining of the budget formula and how all the components including the surplus is calculated. Ms. Garner presented the budget process. Mr. Borgeson asked if project improvements have to be paid in the same year. Mr. Warren stated no. The IMC has many ways to finance through the years. Ms. Garner explained how a budget surplus is intentionally included for unexpected expenses and then refunded at the end of the year. This surplus can be reduced if the IMC wishes. Mr. Borgeson suggested that the committee review the actual and budgeted usage at the six-month period and make any necessary budget amendments to come closer to a zero surplus at the end of the year. D. Reliability Standards Discussion Mr. Wick stated the IOC submitted a draft of the Reliability Standards to the IMC to review to approve. The utilities are in the process of reviewing the standards. Mr. Hickey stated this is a living document and it should be approved and reviewed on an annual basis. Currently they are working on having two sets of identical standards - IMC’s and HEA’s. The reason for the two sets is that HEA prefers to retain the right to make changes to its reliability standards since it is not part of the IMC. The spinning reserve requirements have not been finalized, but the standards have a section stating that once the study that determines the appropriate amount of spin is complete, each utility will follow it. Mr. Hickey noted the Open Access document will need to be updated too as it refers to the old reliability standards.