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HomeMy WebLinkAbout11.22.2019 IMC_MINUTES AIMC Minutes November 22, 2019 Page 1 of 5 ALASKA INTERTIE MANAGEMENT COMMITTEE REGULAR MEETING Alaska Energy Authority Board Room, Anchorage Alaska Friday, November 22, 2019 1. CALL TO ORDER Chair Anna Henderson called the meeting of the Alaska Intertie Management Committee to order on November 22, 2019, at 9:00 a.m. A quorum was established. 2. ROLL CALL FOR COMMITTEE MEMBERS Members present: Anna Henderson (Municipal Light & Power (ML&P)); Tony Izzo (Matanuska Electric Association (MEA)); Brian Hickey (Chugach Electric Association (CEA)); Cory Borgeson (Golden Valley Electric Association (GVEA)); and Kirk Warren (Alaska Energy Authority (AEA)). 3. PUBLIC ROLL CALL Public present in Anchorage: Ladonna Lindley (Accu-Type Depositions); Ashton Doyle (AEA); Jocelyn Garner (AEA); David Lockard (AEA); Beazit Redzepi (AEA); Stefan Saldanha (Department of Law); Russell Thornton (CEA); Bob Day (Homer Electric Association (HEA) Bradley Lake Hydro); Larry Jorgensen (HEA); Kirk Gibson (McDowell Rackner & Gibson PC); Ed Jenkin (MEA); David Pease (MEA); Jeff Warner (ML&P); Bernie Smith (Public); Christina Hunter (RCA) (phone); and John Foutz (City of Seward). 4. PUBLIC COMMENTS None. 5. AGENDA APPROVAL MOTION: Mr. Borgeson made a motion to approve the agenda. Motion seconded by Mr. Hickey. The motion was approved unanimously. 6. APPROVAL OF PRIOR MINUTES - September 27, 2019 MOTION: Mr. Izzo made a motion to approve the September 27, 2019 minutes. Motion seconded by Mr. Warren. The motion was approved unanimously. 7. NEW BUSINESS 7A. FY19 IMC Refund AIMC Minutes November 22, 2019 Page 2 of 5 Jocelyn Garner, AEA and Budget Subcommittee Chair, noted the FY19 IMC refund handout is included in the member packet. She described the process by which the Budget Subcommittee calculates and determines the annual excess revenues or the revenue deficiencies. The calculation is reported to the IOC. It is the responsibility of the IOC to grant AEA the authority to provide any annual refund to the participants and users. Ms. Garner noted there were two calculations for the refund shared with both the Budget Subcommittee and the IOC. The Budget Subcommittee requested both calculations be reported to the IMC. The Budget Subcommittee recommended the historical calculation be utilized for the refund to remain consistent with previous precedent. The IOC agreed with using the historical calculation and recommended both calculations be presented to the IMC. Additionally, the IOC recommended a legal review of the agreement language be conducted to ensure the calculation is within compliance. Ms. Garner reviewed the calculations and the processes. MOTION: Mr. Borgeson made a motion to approve the refund determination based on historical calculations, pursuant to legal review and direction. Motion seconded by Mr. Hickey. Mr. Warren verified the IOC agreed with the Budget Subcommittee’s recommendation to use the historical calculation for the refund, and to conduct a legal review of the agreement language. Ms. Garner agreed. Chair Henderson asked Mr. Gibson if she assigns IMC legal review or if the IOC assigns legal review. Mr. Gibson explained it is possible for the Chair to assign the legal review to both Mr. Gibson and to the IOC. Mr. Gibson will report findings and directions to the IMC and AEA. Mr. Borgeson inquired if this topic was a discussion at a previous IMC meeting. Ms. Garner remembers discussing this topic in a previous Budget Subcommittee, but not an IMC meeting. The historical calculation was the only calculation presented to the IMC last year. A roll call vote was taken, and the motion was approved unanimously. 7B. Operators Report Jeff Warner, ML&P, reviewed the Operators Report. The usage is reflected per the budget year for the time period of July through October. Usage has been down during this period. Bradley Lake has been out of service during this time period, which contributed to the decreased usage. Mr. Warner discussed a recent trip on the Intertie. This is the only trip that has occurred during 2019. It was determined to be a single phase fault. The Relay Protection Subcommittee is researching the reason for the trip and the solution for prevention. Mr. Warner gave a general overview of the provided Quarterly Report. He informed the Committee of an item not included within the Quarterly Report that occurred on AIMC Minutes November 22, 2019 Page 3 of 5 November 20th at Substation 15 near Northern Lights. ML&P received SCADA alarms in the morning and the operator proceeded to view the camera output and determined the cameras had been damaged by an intrusion. No copper was missing. Various valves had been closed and breakers had gone stiff. The high voltage protection was damaged and disabled. Wires and fiber within the communication cabinet were cut and damaged. The LTC cabinet at the transformer was opened and breakers were turned off. The sudden pressure and nitrogen were valved out. ML&P is working with law enforcement regarding the issue and additional information will be reported as released. Mr. Borgeson expressed appreciation for the report. He believes the cameras should be motion sensitive. Mr. Hickey inquired as to the IOC status of the critical infrastructure protection standard for physical security. Mr. Warner requested Ed Jenkin, MEA and Chair of IOC, address the question. Chair Henderson invited Mr. Jenkin to comment. Mr. Jenkin believes the critical infrastructure protection standard for physical security has been moved out of the IOC, but he will confirm. Mr. Hickey suggested the IOC be assigned to review the standards in light of the recent incident. Mr. Borgeson commented the six utilities have filed cyber and physical security standards with the Regulatory Commission of Alaska (RCA). He reiterated the request for the IOC to review the standards to ensure adequate coverage of the physical security issues related to the recent break-in. Mr. Jenkin will confirm the approved standards included physical security. Mr. Warner affirmed the approved standards included physical security. Mr. Warren requested additional information regarding the status of the IMC review and approval of the cyber and physical security standards. Mr. Warner noted he is unaware of the status. Mr. Jenkin informed he does not recall the IMC process or AEA’s adoption of standards. Mr. Warren does not believe AEA has the ability to unilaterally decide on Intertie standards. Mr. Hickey believes the cyber and physical security standards were passed off to the Railbelt Utility Manager Group and approved. 8. COMMITTEE REPORTS 8A. OC Report Mr. Jenkin reviewed the IOC Report. Mr. Jenkin provided a written IOC Report to members. He highlighted the IOC action revising language of the presently adopted Intertie Agreement. The revisions reflect actual operations concerning boundaries for maintenance and control. The revisions will be brought forth at the next IOC meeting with an action request. AIMC Minutes November 22, 2019 Page 4 of 5 Mr. Jenkin noted Item 4, concerning the ability to increase visibility and spin calculation accounting, is still progressing. Release of necessary final information for review is being resolved at a subcommittee level. Mr. Jenkin informed the status of the modeling updates will be reviewed in subcommittee. 8B. Budget to Actual Report Ms. Garner presented the Budget to Actual Report for the months of July and August. The current calculated refund is approximately $701,000. The operating refund is not likely to continue to increase at the previous rate. The September and October reduced Intertie usage is not shown on the report. Ms. Garner reviewed the cash balance within the Alaska Intertie Trust Fund for the remaining of the fiscal year. Mr. Borgeson commented the Intertie usage has decreased during the fiscal year. He suggested the IOC is asked to review and propose a revised budget to reflect the reduced usage and to reduce some of the planned expenses that will not get accomplished this year. The IOC would make their proposed budget revisions to the Budget Subcommittee, who would then review and bring a possible budget modification before the IMC. 9. COMMITTEE ASSIGNMENTS Chair Henderson assigned the IOC to review the cyber and physical security standards in front of the RCA and to make a recommendation to the IMC regarding any necessary comments or modificatons, in light of the recent security breaches. Chair Henderson assigned the IOC and the Budget Subcommittee to review the budget to determine whether any mid-year budget adjustments are necessary, in light of the decline in usage. Chair Henderson assigned Mr. Gibson to carry forth the motion adopted by the Committee today. 10. MEMBERS COMMENTS Mr. Borgeson expressed appreciation for the work presented today. Mr. Hickey echoed appreciation for the work and detailed reports. Chair Henderson expressed appreciation for participation. 11. NEXT MEETING DATE - January 24, 2020