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HomeMy WebLinkAbout09.25.2020 IMC.Executed MinutesAlaska Intertie Management Committee Friday, September 25, 2020 Anchorage, Alaska 1. CALL TO ORDER Chair Anna Henderson called the meeting of the Alaska Intertie Management Committee to order on September 25, 2020, at 9:10 a.m. A quorum was established. 2. ROLL CALL FOR COMMITTEE MEMBERS Members present: Anna Henderson - Chair (Municipal Light and Power (ML&P)) (phone); Ed Jenkin (Matanuska Electric Association (MEA)) (phone); Brian Hickey (Chugach Electric Association (CEA)) (phone); John Burns (Golden Valley Electric Association (GVEA)) (phone); and Kirk Warren (Alaska Energy Authority (AEA)). 3. PUBLIC ROLL CALL Public present: Ladonna Lindley (Accu-Type Depositions); Jennifer Bertolini (AEA); Brian (sp) Garner (phone) (AEA); Robert Hawkins (AEA); David Lockhard (AEA); Beazit Redzepi (AEA); Aimee Sudbeck (AEA); Stefan Saldanha (Department of Law); Pete Sarauer (phone) (GVEA); Ron Woolf (phone) (GVEA); Larry Jorgenson (phone) (HEA); Kirk Gibson (phone) (McDowell Rackner & Gibson PC); Christina Hunter (phone) (RCA); Dean Thompson (phone) (ML&P), Jeff Warner (phone) (ML&P); Bernie Smith (phone); and James Unidentified (phone). 4. PUBLIC COMMENTS - None 5. AGENDA APPROVAL MOTION: Mr. Hickey made a motion to approve the agenda. Motion seconded by Mr. Warren. Mr. Jenkin asked if a separate item for Committee Assignments needs to be added to the agenda. Chair Henderson noted Kirk Gibson, McDowell Rackner & Gibson, advised previously that she has the authority to make committee assignments under business items. Chair Henderson requested to amend the agenda and add an item under New Business for the Sale of ML&P to Chugach Electric. Mr. Hickey and Mr. Warren agreed to the friendly amendment. A roll call vote was taken, and the agenda was approved unanimously, including the friendly amendment to include an item under New Business for the Sale of ML&P to Chugach Electric. AIMC Meeting Minutes -September 25, 2020 1 6. PRIOR MINUTES - June 30, 2020 and July 24, 2020 MOTION: Mr. Warren made a motion to approve the Minutes of June 30, 2020, and July 24, 2020. Motion seconded by Mr. Hickey. Mr. Jenkin requested an amendment to the July 24, 2020 Minutes under Item 7C, fourth paragraph, that would read, "Mr. Jenkin informed the IMC that the IOC has recommended the above changes." Mr. Warren and Mr. Hickey agreed to the friendly amendment. A roll call vote was taken, and the Minutes of June 30, 2020, and July 24, 2020 were approved unanimously, including the friendly amendment to the July 24, 2020 Minutes, under Item 7C, fourth paragraph, to read "Mr. Jenkin informed the IMC that the IOC has recommended the above changes" 7. NEW BUSINESS 7A. Operators Report Chair Henderson requested Jeff Warner, ML&P, provide the Operators Report. Mr. Warner noted documents were sent via email pertaining to the Operators Report. No Alaska Intertie trips have occurred since the last meeting. There were four load shed events. No questions were asked. 7B. Sale of ML&P to Chugach Electric Chair Henderson informed the IMC that the RCA recently approved the sale and acquisition of ML&P to Chugach Electric. The close date is scheduled for October 30, 2020. Consent by the IMC is required before the transfer of ML&P's interest in the Alaska Interne can transfer to Chugach Electric. Chair Henderson noted she will provide a committee assignment after discussion occurs. Mr. Hickey asked if Mr. Gibson is prepared today to provide a brief overview of the apportionment of shares in the Amended and Restated Interne Agreement. Mr. Gibson agreed that consent is required by the IMC to assign someone's rights and obligations. Mr. Gibson reviewed the voting requirements are 66% of the total annual system demand of the voting members and 75% of the voting members, plus the affirmative vote of AEA among certain matters. He believes the committee assignment charge will address the voting interests. The annual total system demand will be the lynchpin of the voting, as to the effect of the merger. Mr. Warren brought attention to Article 9 discussing the requirements and obligations of the listed operators of the Intertie. Mr. Warren requested the committee assignment include the review of Article 9. Mr. Jenkin commented on the standard requirement for total operating reserve obligations. He inquired as to how those reserve obligations will be maintained with this acquisition or if the obligations will be changed with this acquisition. Mr. Jenkin noted that HEA has made a AIMC Meeting Minutes -September 25, 2020 2 determination how HEA is going to participate in reserve requirements after the acquisition in the future. Mr. Jenkin suggested that the Operating Committee be assigned to review spinning reserve obligations based upon past practice and other appropriate methodologies, and then to report the findings back to the IMC. Mr. Hickey suggested the assignment that Mr. Jenkin recommended be assigned to multiple subcommittees, including the System Studies Subcommittee, and to Mr. Gibson. Mr. Jenkin responded he believes that the assignment could be made to the Operating Committee, as the System Studies Subcommittee is a subset of the Operating Committee, and the determination can be made at the Operating Committee level. Mr. Hickey believes Mr. Gibson should be involved because of the likely requirement to amend Appendix H. He requested draft language to Appendix H, Section 10, be presented and proposed at the next meeting, as well as any maintenance sub -agreement language, and any sub -agreement lease language. Mr. Gibson believes the committee assignment for the Operating Committee should address the technical operating reserve issue, including spinning reserves and operating reserves, and Section 10., regarding the responsibility of the operation of the Intertie. Mr. Gibson believes the Operating Committee should provide recommendations to the IMC on both of those issues. Mr. Burns recommended the committee assignment include an expeditious, comprehensive and systematic review by the Operating Committee and Mr. Gibson to outline the impacts in the various sections associated with the acquisition. The overall report and recommendations will then be presented to the IOC. Chair Henderson assigned Mr. Gibson to advise the IMC on any requirements for consent related to the sale of ML&P to Chugach Electric, and work with the Intertie Operating Committee (IOC) to formulate a new annual systems demand amount preview with determining voting requirements and MITCR, no later than October SO. There were no questions regarding the assignment. Chair Henderson assigned the IOC and any relevant subcommittee to advise the IMC on operational impacts that result from the sale of ML&P to Chugach Electric, no later than October 9a'. Mr. Hickey asked Mr. Gibson if there are any ramifications should these issues not be resolved by October 30'. Mr. Hickey noted there are 24 working days to fulfill the assignments. Mr. Gibson noted ML&P's operation responsibility for the Intertie will need to be replaced and the agreements need to match the timeline. Mr. Hickey requested Mr. Gibson assist the IOC and other committees to prioritize the efforts and provide actionable information in the event there are time constraints. W. Gibson agreed. Chair Henderson clarified the assignment to the IOC was to advise on the impacts. The IOC and Mr. Gibson will then advise on what needs to be addressed before consent is given and what can be addressed after consent is given. AIMC Meeting Minutes -September 25, 2020 3 Mr. Warner acknowledged he received the assignments from Chair Henderson and will work with Mr. Gibson to get the assignments completed in a timely manner. 8. COMMITTEE REPORTS 8A. OC Report Mr. Warner noted the IOC report is included in the packet. The IOC last met on August 6Ih. The scheduled September 241' meeting was postponed due to member availability. Mr. Warner summarized the report and assignments given to the IOC subcommittees. The IOC members were to develop an overview document to describe data requirements in order to exchange data between each of the utilities. This work is ongoing. Mr. Warner noted the Douglas Substation Microwave Communication Project will use funding from a $6.9 million grant. The IOC requested that AEA provide approximately $500,000 in additional funding for this effort. Mr. Warner read AEA's response indicating that AEA is not prepared to commit funds, given the State's economic circumstances. AEA is committed to working with utilities and their management teams. Mr. Warner anticipates this item to be discussed at the next meetings. Mr. Warner reported that work is ongoing to share Committee, Subcommittee, and system event information. Mr. Warner noted that Mr. Gibson attended the last meeting to address Cantwell Station ownership and cost sharing allocation requirements. Mr. Warner summarized Mr. Gibson's review of the AIA agreement and that the Railbelt utilities are obligated to cover transmission line switches. Mr. Warner indicated that the mobile sub issue that GVEA brought to the Committee will still need to be addressed. The evaluation for the cost -sharing methodology for that project will be an ongoing discussion at upcoming meetings. Mr. Warner reported that the Dispatch and System Operations Subcommittee is reviewing current Railbelt maintenance scheduling processes and is reviewing current IOC reliability reporting. Mr. Warner reported that the Engineering Relay and Reliability Subcommittee (ERRS) was to look at the bulk system Executive Order and make a recommendation to the IOC. Mr. Warner read the response: "Due to the lack of specificity within the Order, the ERRS recommends no immediate action. The Subcommittee suggests that we continue to use industry best practices when acquiring goods and services for the Intertie. It is anticipated that policies regarding infrastructure procurement will be developed by the Order's task force in the near future." The ERRS recommends that the appropriate subcommittees of the IOC review and edit policy when it is made available to the public. Mr. Warner noted the IOC agreed with the Subcommittee recommendation. Mr. Warner reported that the Machines Rating Subcommittee was assigned to work with the Systems Studies Subcommittee to review the operation study results. An ad hoc subcommittee was formed with members of both subcommittees and one Chair. The work is ongoing. Mr. Warner reported that the Operations Maintenance and Scheduling Subcommittee was assigned to ensure that the notifications are made. Mr. Warner reported that the Systems Studies Subcommittee is working with PTI (sp) related to the oscillation study. Mr. Warner reported that AEA is working with GE in order to obtain a bid to install settings once provided by PTI at the SVCs on the Intertie. Mr. Warner does not expect the cost to be overly high. The scope of work that is required is anticipated to be within the current SVC maintenance agreement. AIMC Meeting Minutes -September 25, 2020 4 Mr. Warner discussed the flyover for the LIDAR project is complete. Manitoba Hydro is currently compiling the data and will provide the reports and information as required by the contract. Mr. Warner expressed appreciation to Dan Bishop and David Lockhard for creating today's report in his absence. There were no questions. 8B. Budget To Actual Report Beazit Redzepi, AEA, Mr. Redzepi discussed the Budget to Actual Report for the entire year. The total revenues collected for the year were $2,515,661. The total expenses incurred for the year were $963,027. The surplus for the year was $1,552,634. Mr. Redzepi reviewed the total budgeted usage and actual usage shown on page two of the report. There were no questions. 9. MEMBERS COMMENTS Mr. Burns expressed appreciation for the thorough reports. Mr. Hickey expressed appreciation to Mr. Bishop and Mr. Lockhard for creating the IOC summary report. Mr. Warren echoed the comments of appreciation for the reports and to staff. He introduced Jennifer Bertolini as the new Executive Assistant for AEA. Chair Henderson welcomed Ms. Bertolini, and echoed the comments of appreciation. Chair Henderson thanked the Committees for their upcoming work and efforts, based on the assignments given today. 10. NEXT MEETING DATE - December 11, 2020 The next scheduled meeting is Friday, December IIth. Chair Henderson noted that another meeting is likely to occur prior to December, based on the assignments given today. 11. ADJOURNMENT There being no further business of the AIMC, the meeting adjourned at 10:00 a.m. Chair AIMC Meeting Minutes -September 25, 2020 5