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HomeMy WebLinkAbout05.29.2020 IMC.Executed.MinutesDocuSign Envelope ID: 6C65D1A8-C6A8-4BA4-80E4-FD4AE2509AFB Alaska Intertie Management Committee MEETING MINUTES Friday, May 29, 2020 Telephonic Anchorage, Alaska 1. CALL TO ORDER Secretary Kirk Warren called the telephonic meeting of the Alaska Intertie Management Committee to order on May 29, 2020, at 9:00 a.m. A quorum was established. 2. ROLL CALL FOR COMMITTEE MEMBERS Members present: Jeff Warner (Municipal Light & Power (ML&P)); Ed Jenkin (Matanuska Electric Association (MEA)); Brian Hickey (Chugach Electric Association (CEA)); John Burns (Golden Valley Electric Association (GVEA)); and Kirk Warren (Alaska Energy Authority (AEA)). 3. PUBLIC ROLL CALL Public present: Ryan Garner (AEA); Beazit Redzepi (AEA); Aimee Sudbeck (AIDEA); John Foutz (City of Seward); Patrick Gillis (City of Seward); Stefan Saldanha (Department of Law); 9Max Garner (Law); Russel Thornton (CEA); Dan Bishop (GVEA); Kirk Gibson (McDowell Rackner & Gibson PC); Bernie Smith (Public); and Jay Layne (RCA). 4. PUBLIC COMMENTS Bernie Smith inquired as to the reason the approval of the prior minutes are not included in the agenda. Mr. Warren noted the meeting minutes are not yet available and will be added on the agenda at the next IMC meeting. 5. AGENDA APPROVAL MOTION: Mr. Warner made a motion to approve the agenda as presented. Motion seconded by Mr. Hickey. Mr. Jenkin asked if an item needs to be added to the agenda regarding the election of a Vice - Chair since Cory Borgeson is no longer a member. Mr. Warner noted it may be necessary to add an agenda item for an election for Chair and Vice -Chair at this meeting. Kirk Gibson, McDowell Rackner & Gibson PC, informed the IMC is about a month away from the first meeting in the new fiscal year in July, at which time the formal election occurs. He noted Anna Henderson remains as Chair, and believes elections can hold off until then. Mr. Gibson noted if it is the will of the Committee, an interim appointment can be made until the formal elections occur. AIMC Meeting Minutes, May 29, 2020 DocuSign Envelope ID: 6C65D1A8-C6A8-4BA4-80E4-FD4AE2509AFB Mr. Jenkin deferred to Mr. Burns on his need to address the issue. Mr. Burns communicated he does not need to address the issue. A roll call vote was taken, and the agenda, as presented, was approved unanimously. 6. NEW BUSINESS 6A. Operators Report Mr. Warner reviewed the Operator Report of May 29, 2020. The MWh usage for GVEA is down about 94% from FY19. The MWh usage for MEA is up about 10% from FY19. The total MWh usage is down about 79% from FY19. The usage includes the issue related to Bradley Lake. From January 1, 2020, there have been no intertie trips. The scheduled maintenance at Douglas Substation was completed May 13, 2020. Mr. Warner reviewed the IOC reliability report. Of the 30 events, the low frequency was 59.26 and the high frequency was 60.24. Four of the events were related to transmission. There were no questions. 6B. FY21 Preliminary Budget Beazit Redzepi, AEA, presented the FY21 Preliminary Budget. The overall FY21 proposed budget is $2,236,216. The operating costs are $1,516,216. The administrative costs are $720,000. The overall reduction of the budget from the previous year is $661,000. Mr. Redzepi reviewed the FY21 Energy Projection. The usage per MWh was $9.64 in FY20 and is projected to be $6.74 in FY21. The capacity rate in FY20 was $2.29 and is projected to be $1.60 in FY21. The FY21 annual participant administrative contribution amount will be $180,000. Mr. Redzepi reviewed the Minimum Intertie Transfer Capability Right (MITCR) Determination for FY21. Mr. Jenkin commented regarding the MEA line item Equipment Repair and Replacement in the preliminary budget under FERC 571 - Maintenance of Overhead Lines. Mr. Jenkin noted MEA has received preliminary bids and schedules for the marker -ball replacement project with the intent to conduct work in June and July in order to spread costs over both FY20 and FY21 budgets. Project work has been postponed and anticipated to occur in July and August. This delay affects the FY20 and FY21 budgets. Mr. Hickey asked if the FY21 Proposed Budget item Equipment Repair and Replacement of $358,831 is included or in addition to the same line item for FY20 of $539,818. Mr. Jenkin explained the total project cost is estimated at $850,000. The intent was to split the cost between two fiscal years. Mr. Jenkin discussed the Committee can either include the total cost in FY21 or defer the project until next summer and spread the cost between FY21 and FY22. The expenses of $16,521 incurred in FY20 are items purchased, such as the marker balls. MOTION: Mr. Warner made a motion that the Alaska Intertie Management Committee, IMC, approve the fiscal year 2021 preliminary operating budget to be posted for the 30-day public comment period as presented. Comments are due to the IMC and AEA by 5:00 p.m. on June 29, 2020. Motion seconded by Mr. Warren. AIMC Meeting Minutes, May 29, 2020 2 DocuSign Envelope ID: 6C65D1A8-C6A8-4BA4-80E4-FD4AE2509AFB MOTION: Mr. Jenkin made a motion to change Equipment Repair and Replacement under FY21 from $358,831 to $850,000. Motion seconded by Mr. Hickey. Mr. Jenkin explained the work was originally scheduled to occur in both FY20 and FY21 in June and July of 2020. The work will not begin until July 2020 and completed in FY21, unless it is postponed until next summer June 2021 and July 2021. Mr. Hickey asked if the approval of this FY21 budget amendment would bring the FY21 budget to approximately $100,000 less than the FY20 budget. Mr. Redzepi agreed. Mr. Burns asked if the FY20 budget needs to be amended to reduce the amount of funds that were not spent for this project, and carry that amount forward to the FY21 budget. Mr. Jenkin explained there have been expenditures on the project in FY20. The majority of the funds will be spent in FY21. He deferred to AEA on how to address the budget issue. Mr. Warren discussed AEA typically writes a budget variance report for the items in the budget that are greater than 10% of the total. At the end of the fiscal year, the participating utilities will get a report explaining any such items and an amendment to the budget does not occur. Mr. Redzepi communicated a refund of the surplus of the budget occurs at the end of any fiscal year. Discussion ensued regarding this line item is a safety issue and the recommendation is to complete the work in the July/August timeframe. A roll call was taken and the motion to change Equipment Repair and Replacement under FY21 from $358,831 to $850,000 passed unanimously. Mr. Warren requested a roll call vote be taken on the motion the Alaska Intertie Management Committee, IMC, approve the fiscal year 2021 preliminary operating budget to be posted for the 30-day public comment period as amended. Mr. Gibson explained the approval of the motion to amend included the approval of the FY21 budget to be posted as amended, and the meeting can proceed to the next agenda item. 7. OLD BUSINESS - None 8. COMMITTEE REPORT 8A. OC Report Mr. Warner referenced the IOC meeting report dated May 29, 2020, in which GVEA proposed the Cantwell switch replacement and mobile substation site improvements be delayed to the FY22 budget cycle due to revenue uncertainty caused by the COVID-19 pandemic. Those delays have been approved. AIMC Meeting Minutes, May 29, 2020 3 DocuSign Envelope ID: 6C65D1A8-C6A8-4BA4-80E4-FD4AE2509AFB Mr. Warner explained the IMC assigned the IOC to determine the percent allocation between AEA and GVEA for the Cantwell Substation equipment. The IOC found information in the provided maintenance agreement that lists equipment located at Cantwell and owned by AEA. The IOC concluded that all the equipment at the Cantwell Substation is owned by AEA. Mr. Warner noted another detailed discussion at the IOC meeting regarding GVEA proposed in the budget that they have improved the existing mobile substation site by about $500,000. The land for the existing mobile substation site is leased by AEA. The IOC discussed options for replacement work at Cantwell, including the installation of a shoe -fly, the relocation of the mobile substation site within the fence of the Cantwell Substation, and the installation of a generator to serve load during the time the line is out for the switch replacement. Mr. Warner discussed GVEA reviewed the shoe -fly project and estimated the cost at about $200,000. It would also require an outage for installation. The relocation of the substation within the fence is still being reviewed. The cost of the generator was expensive. These issues will be addressed further in FY22. Mr. Warner informed GVEA received eight bids for the LIDAR project. The evaluations are complete and GVEA notified the winner of the project last night. GVEA is now awaiting confirmation from the winner. Mr. Warner advised MEA received four bids related to the marker ball replacement and the evaluation process is ongoing. The Oscillation Study is complete and the results of the study provided the most effective solution to dampen the current system oscillations. The SSS Committee is currently reviewing the findings and developing specific recommendations for the different resources within the Railbelt. Mr. Jenkin asked Mr. Warner for the schedule of completion for the LIDAR work. Mr. Warner noted the price of the LIDAR was lower than anticipated. The $300,000 in the FY21 budget will cover the entire project cost. The completion date is scheduled for January 2021. 8B. Budget to Acutals Mr. Redzepi discussed the Budget to Actual Report dated July 1, 2019 through March 31, 2020. The total revenues collected for this period are $2,118,924. The total expenses incurred for this period are $657,691, The surplus for this time period is $1,461,233. Mr. Redzepi noted the Alaska Intertie Trust Fund account ending balance of $432.24 was fully spent in April and the account was subsequently closed. Reporting will no longer occur in FY21. 9. COMMITTEE ASSIGNMENTS - None AIMC Meeting Minutes, May 29, 2020 4 DocuSign Envelope ID: 6C65D1A8-C6A8-4BA4-80E4-FD4AE2509AFB 10. MEMBERS COMMENTS Mr. Hickey expressed appreciation to Mr. Warner for the extensive Operators Report and to the Budget Subcommittee for their efforts on the budget. Mr. Burns echoed Mr. Hickey's comments and expressed appreciation to members for their patience. Mr. Warner expressed appreciation to Mr. Warren for chairing the meeting today. Mr. Warren echoed the sentiments of Mr. Burns. 11. NEXT MEETING DATE - June 30, 2020 The next regular meeting is scheduled for June 30, 2020. 12. ADJOURNMENT There being no further business of the AIMC, the meeting adjourned at 9:52 a.m. Ea"A%DocuSigned by: V (�'t�n.�, Vi- 7/27/2020 22D0676AEF3=3_. Anna Henderson, Chair A!? ary AIMC Meeting Minutes, May 29, 2020 5