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HomeMy WebLinkAbout2021.03.26 IMC.ExecutedMinutesAlaska Intertie Management Committee (IMC) REGULAR MEETING MINUTES Friday, March 26, 2021 1. CALL TO ORDER Chair Ed Jenkin called the meeting of the Alaska Intertie Management Committee to order on March 26, 2021, at 9:15 a.m. A quorum was established. 2. ROLL CALL FOR COMMITTEE MEMBERS Members present: Jeff Warner (Chugach Electric Association (CEA)); Ed Jenkin (Matanuska Electric Association (MEA)); John Burns (Golden Valley Electric Association (GVEA)); and Kirk Warren (Alaska Energy Authority (AEA)). 3. PUBLIC ROLL CALL Public present: Sunny Morrison (phone) (Accu-Type Depositions); Jennifer Bertolini (AEA); Debra Caldwell (AEA); Ryan Garner (phone) (AEA); Melissa Yang (AEA); Unidentified Speaker (phone) (AEA); Unidentified Speaker (CEA); Stefan Saldanha (Department of Law); Dan Bishop (phone) (GVEA); Pete Sarauer (phone) (GVEA); Ron Woolf (phone) (GVEA); Larry Jorgenson (HEA); Kirk Gibson (phone) (McDowell Rackner & Gibson PC); and Bernie Smith (phone) (Public). 4. PUBLIC COMMENTS Mr. Bernie Smith commented that he did not hear the roll call for the public and wanted to indicate that he was present. 5. AGENDA APPROVAL MOTION: Mr. Warren made a motion to approve the agenda. Motion seconded by Mr. Warner. Mr. Warner requested a friendly amendment to move item 7B. Operator Report within Item 9A. OC Report. There was no objection to the friendly amendment. Chair Jenkin informed that Item 8F. will include a discussion of the allocation of costs outlined in the memorandum previously prepared and provided by Kirk Gibson, McDowell Rackner & Gibson PC. Chair Jenkin noted the details within the memorandum may possibly affect actions associated with the budget under Item 7A. Mr. Gibson believes all the information within the memorandum has been completed. Mr. Warren agreed. IMC Meeting Minutes - March 26, 2021 1 A roll call vote was taken, and the agenda as amended, to move Item 7B. Operator Report within Item 9A. OC Report, was approved unanimously. 6. APPROVAL OF PRIOR MINUTES - January 29, 2021 MOTION: Mr. Warren made a motion to approve the Meeting Minutes of January 29, 2021. Motion seconded by Mr. Warner. Chair Jenkin asked Mr. Warner if CEA submitted the formal document to AEA that changed CEA's membership names for the IMC. Mr. Warner indicated that he has not seen a formal document and requested confirmation from AEA. Ms. Bertolini stated an email notification has been received. A roll call vote was taken, and the Minutes of January 29, 2021 were approved unanimously. 7. NEW BUSINESS 7A. FY22 IMC BUDGET Mr. Warren introduced Debra Caldwell, AEA, to present the FY22 IMC Proposed Budget. Ms. Caldwell began by welcoming Ms. Yang as the new Senior Accountant and Projects Accountant, who will be working on the Alaska Intertie and Bradley projects. Ms. Caldwell reviewed that the revenue for FY22 is projected to be $269,000 higher than the FY21 budget, primarily due to the increase usage projections for GVEA. Revenues for ML&P and CEA have been combined for FY22. However, the ML&P line item remains to show prior years' amounts for comparison. Ms. Caldwell reviewed that the total amount of expenses compared to FY21 is down $287,000. Ms. Caldwell explained that the GVEA planned maintenance of $295,000 at Cantwell for the RTU, recloser, and transformer protection replacement is the total estimated cost. She understands that discussions are ongoing regarding cost -sharing alternatives. Ms. Caldwell highlighted that the decreases in expenses are due to lower equipment repair and replacement for marker balls and the decrease in administrative costs related to study costs that were budgeted in FY21. The lower administrative costs will be equally shared among the three utilities. Ms. Caldwell stated that the budget shortfall for FY22 is $23,631. Ms. Caldwell discussed the chart showing the energy projection for FY22. She informed that the annual system demand for CEA and ML&P has been combined and recalculated over the last three years. Ms. Caldwell reviewed the Minimum Intertie Transfer Capability Rights (MITCR) determination showing the historical annual system demand, which assists in calculating the revenue for the financials. Chair Jenkin requested clarification of the collections for megawatt hour charges, the total amount of megawatt hours, and the wheeling rates. Ms. Caldwell explained total revenues increased by $269,000 compared to the prior budget, and total expenses decreased. The actual usage is multiplied by the usage rate to determine the revenue. Mr. Gibson offered additional IMC Meeting Minutes - March 26, 2021 2 explanation comparing the total expense of the FY21 budget to the total expense of the FY22 budget. The decrease in the FY22 budget is primarily due to the completion of the LIDAR study, which was calculated equally among the utilities as administrative costs. Ms. Caldwell discussed the budget schedule. The budget has to be approved to undergo a mandatory 30-day public review and comment period by the May meeting, because the final budget approval deadline date is June 30. Ms. Caldwell advised that the budget is ready to be approved for the 30-day public review period today, if no changes are necessary. Mr. Burns requested clarification that any budget action today will reflect the total cost, rather than approve the allocation of costs to a new structure due to the CEA/ML&P transaction. Chair Jenkin asked Mr. Gibson to review his memorandum and to describe how the changes from the CEA/ML&P transaction are reflected through the Alaska Intertie Agreement. Mr. Gibson explained his interpretation and opinion is that the gross numbers within the FY22 budget follow the allocation of the Alaska Intertie Agreement. Chair Jenkin noted that there are costs within the FY22 budget that are administrative costs not associated with the actual administration of the Intertie, including miscellaneous studies that are allocated to organizations not part of the IMC. He suggested the IMC consider asking the Rural Utility Management (RUM) if the studies can be moved to their purview in order to have representation from all of the organizations who are paying for the studies. Mr. Burns expressed support for moving the studies to the RUM. He asked if the RUM was prepared to accept the proposal and to prepare a budget, if necessary. A Committee member commented that although there is representation by a larger group of load -serving entities at the RUM, the owner of the Intertie is not represented on the RUM, and to the extent that this affects the Intertie, he believes it is important to understand how it will conform and relate to the ongoing Intertie work. Chair Jenkin explained the allocation of spinning reserves study that is being contemplated by the studies group comprises the majority of the funds and has minimal impact on Intertie operations. Chair Jenkin requested the memorandum be shared on the screen for review. Ms. Bertolini commented that she does not have the memorandum. She noted that the memorandum will need to become part of the public record if it is being discussed during the meeting. Mr. Warner recommended discussion occur regarding the cost -sharing of the budgeted $285,000 under FERC 570 for the work at Cantwell. Mr. Warner suggested the Committee may want to give the IOC an assignment to develop a cost -sharing plan. He noted another option is to amend the budget at a later date. Chair Jenkin requested Mr. Gibson resend his memorandum to the Committee members. Mr. Gibson complied and indicated that he forwarded the previous email to all members and to Ms. Bertolini. Mr. Gibson recommended tabling this issue in order to consult with AEA and to further discuss the details of the issue. IMC Meeting Minutes - March 26, 2021 3 Chair Jenkin informed that no action will be taken regarding the budget at this time. He summarized that Mr. Burns will address the study cost issue with the RUM at their meeting today. ,There was no objection. 8. OLD BUSINESS 8A. Oscillation Study recommendations -schedule for implementation Mr. Warner informed that there is no action required regarding the oscillation study. The information is an update on the current and proposed schedules. In light of time constraints for today's meeting, Chair Jenkin requested moving Item 8A. and 8F. to next month's meeting, and deleting Item 8B. There was no objection. 8B. State appropriation - None. 8C. Marker Ball project update Chair Jenkin informed that the Marker Ball Project was budgeted and completed. FAA requested the installation of 137 additional warning marker balls, which were not included in the original Marker Ball Project. An analysis and recommendation from the Maintenance Subcommittee to proceed with the FAA requests is included in the proposed FY22 budget. There were no questions. 8D. LIDAR study status Chair Jenkin and Mr. Warner discussed that the fieldwork and flyovers for the LIDAR study have concluded. Repairs have been completed on the identified hot spots. The documentation and report is being prepared and is expected to be submitted to the IOC by June 2021. There were no questions. 8E. Vegetation management plan development Mr. Warner explained that the vegetation management plan development is ongoing within the Maintenance Subcommittee. The joint program includes MEA and GVEA as maintainers. The effort is to develop best practices and a new policy for Intertie vegetation management. The work is expected to occur over the next couple of months and will be reviewed by the IOC. Mr. Warner discussed House Bill 29 requires a vegetation management plan to indemnify transmission line owners. There were no questions. MOTION: A motion was made to table the remaining agenda items to the next meeting. Motion seconded by Mr. Warner. A roll call vote was taken, and the motion to table remaining agenda items to the next meeting was approved unanimously. IMC Meeting Minutes - March 26, 2021 4 SF. Report on Status of Bylaw Amendments - Tabled to next meeting. 9. COMMITTEE REPORTS -Tabled to next meeting. 9A. OC REPORT -Tabled to next meeting. i. UAA wildfire presentation at 3/12 IOC meeting 9B. BUDGET REPORT -Tabled to next meeting. 10. MEMBER COMMENTS Mr. Warren expressed appreciation to members for their patience during today's technical difficulties. He thanked the IOC for their report. Mr. Warren welcomed Ms. Yang. Mr. Burns expressed appreciation for the thoughtfulness given to the budget to address the remaining issues. He thanked AEA for their work. Mr. Warner expressed appreciation to Ms. Caldwell and Ms. Yang for their diligent efforts. He requested Chair Jenkin make an assignment to the IOC related to the cost -sharing mechanisms that may occur at Cantwell in order to address the budget issue. Chair Jenkin agreed and made an assignment to the 10C to review and develop a cost -sharing plan related to the Cantwell budget item. Chair Jenkin expressed appreciation to Ms. Caldwell for providing ample time and the opportunity to discuss the budget at two meetings before any decision needs to be made. It. NEXT MEETING DATE - May 21, 2021 12. ADJOURNMENT There being no further business of the AIMC, the meeting adjourned at 10:05 a.m. J50AVr, Acting Chair IMC Meeting Minutes - March 26, 2021 5