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HomeMy WebLinkAbout2021.10.01 IMC Executed MinutesAlaska Intertie Management Committee (IMC) REGULAR MEETING MINUTES Alaska Energy Authority Board Room Friday, October 1, 2021 1. CALL TO ORDER Chair John Burns called the meeting of the Alaska Intertie Management Committee to order on October 1, 2021, at 9:00 a.m. Jennifer Bertolini, AEA, introduced Lindsey Causer, AEA Administrative Assistant. Chair Burns welcomed Ms. Causer. A quorum was established. 2. ROLL CALL FOR COMMITTEE MEMBERS Members present: John Burns (Golden Valley Electric Association (GVEA)); Brian Hickey (Chugach Electric Association (CEA)); Ed Jenkin (Matanuska Electric Association (MEA)); and Kirk Warren (Alaska Energy Authority (AEA)). 3. PUBLIC ROLL CALL Public present: Betty Caudle (Accu-Type Depositions); Joel Paisner (Ascent Law Partners); Jennifer Bertolini (AEA); Lindsey Causer (AEA); Dona Keppers (AEA); David Lockard (AEA); Melissa Yang (AEA); Sherri Highers (CEA); Lee Thibert (CEA); Jeff Warner (CEA); Stefan Saldanha (Department of Law); Dan Bishop (GVEA); Pete Sarauer (GVEA); Bob Day (HEA); Larry Jorgenson (HEA); Kirk Gibson (McDowell Rackner & Gibson PC); David Pease (MEA); and Bernie Smith (Public). 4. AGENDA APPROVAL MOTION: Mr. Hickey made a motion to approve the agenda. Motion seconded by Mr. Warren. The agenda was approved without objection. 5. PUBLIC COMMENTS - None 6. APPROVAL OF PRIOR MINUTES - July 30, 2021 MOTION: Mr. Hickey made a motion to approve the Meeting Minutes of July 30, 2021. Motion seconded by Mr. Warren. Mr. Hickey informed that he was not present at the prior meeting and will abstain from voting. IMC Meeting Minutes - October 1, 2021 Mr. Jenkin informed that he was not present at the prior meeting and will abstain from voting. The Minutes of July 30, 2021 were approved, with Mr. Hickey and Mr. Jenkin abstaining. 7. NEW BUSINESS - Status of Intertie Chair Burns informed that he requested the inclusion of this agenda item to initiate the dialog regarding the nearly 40-year old asset. He stated it has been a phenomenal asset and believes it is an appropriate time to conduct an operational overview. Chair Burns expressed that Jeff Warner, CEA, and the Intertie Operating Committee (IOC) do a great job of providing regular updates. Chair Burns requested additional information regarding the integrity of the system, anticipated significant improvements or upgrades, reliability numbers, trends, capacity constraints, and ways to maximize capacity of the Intertie. Chair Burns discussed that GVEA is reviewing ways to maximize the ability to bring power up the Intertie and there are certain constraints to expand that, including transient instability issues based on unit generation. Chair Burns noted this agenda item provides an opportunity to discuss with the IOC the future of the Intertie. He does not anticipate that much discussion will occur today and would like to provide direction and guidance to the IOC for future analysis. Chair Burns commented that he believes the Intertie will continue to play a major and expanded role in the future of the Railbelt. Mr. Hickey expressed support for continuing the discussions with input from the IOC regarding improvements, maintenance, and upgrades. He suggested Chair Burns make an assignment to the IOC. Mr. Warren thanked Chair Burns for including this item on the agenda. He agreed to the importance of the discussions, including the IOC's preventative maintenance plan for both short- term and long-term needs. Mr. Warren noted that he asked David Lockard, AEA, to be prepared to speak to the status of the Intertie from AEA's perspective. Chair Burns welcomed Mr. Lockard, and applauded his preparation on short notice. Mr. Lockard informed that he is an infrastructure engineer. He works on the Intertie team directed by Mr. Warren. Mr. Lockard advised that the Intertie is 36 years old. Transmission assets generally have a service life of 30 to 60 years. It costs more during this period of time to maintain the assets, similarly to an older car costing more to maintain. The typical service life for the conductors and steel towers is 40 to 60 years. Mr. Lockard is hopeful that the cold temperatures and the lack of marine environment will extend the life of the towers. The typical service life for the insulators is 50 years. There are 766 tower structures on the Intertie. They run through some of the most remote parts of the state, much of which is not accessible by road. Mr. Lockard emphasized the importance of addressing this topic. Mr. Lockard discussed a few of the significant repairs and upgrades that have been completed. In 2015, the static var compensators (SVC) were replaced with $10 million of State appropriation. In 2018, there was an $800,000 upgrade at the Douglas Substation. Improvements have been made to Towers 195, 748, and 692. Mr. Lockard noted that ongoing IMC Meeting Minutes - October 1, 2021 2 work includes scheduled maintenance and repair on the SVCs, implementation of the recommendations from the Oscillation Study, a cooling retrofit at the SVC at Goldhill Substation by GVEA, vegetation management, and marker ball replacement. The IOC is also working on a five-year predictive maintenance plan, which should address many of the concerns raised by Chair Burns. Mr. Lockard reviewed that in addition to aging equipment, there are challenges with climate change affecting some of the tower foundations, and wildfire risk, as seen in 2019. Chair Burns thanked Mr. Lockard. He noted that the general managers throughout the Railbelt recognize the significance of the Intertie asset, and the importance of integration within the entire Railbelt system. Chair Burns believes the Intertie, from Bradley to Delta, will play a dominant role in the future of the Railbelt. Chair Burns expressed appreciation for the efforts of the IOC in looking forward to understand the holistic asset plan for the next five to 10 years in order to maximize the potentiality, reliability, and the future integrity of the Intertie. Mr. Jenkin commented that there are limiting factors that are not directly associated with the Intertie, including N-1 contingencies that fall outside the Intertie that minimize the flows. He discussed the single point of failure of the Point MacKenzie to Teeland line that affects how much power can flow up the Intertie when that line is out. Mr. Jenkin believes it may be appropriate in the IOC's directive to include the review of other single contingencies outside the Intertie that affect the ability of the Intertie to flow power up north. Chair Burns agreed that this should be a holistic effort to maximize the benefit of the Intertie. Mr. Warner expressed appreciation for the worthwhile conversation and noted that this has been discussed several times at the IOC. He believes the maintenance plan should be included as an agenda item at the next IOC meeting in November in order to specifically focus on developing the maintenance plan. Mr. Warner commented that clear direction from the IMC would be useful regarding maximizing the Intertie use. He noted that the IOC could discuss the issue and create an array of questions to help formulate a plan for the IOC going forward. Mr. Warner agreed with the assessment regarding the obviously aging asset. The maintenance has been performed well. The reliability and the in-service. time this year for the Intertie has been very good. He expressed appreciation for the opportunity to augment the use of the Intertie for the entire Railbelt. He looks forward to the continued efforts. Mr. Warner noted that the IOC will discuss this in more detail in order to make recommendations and to provide budget information regarding the implementation of the maintenance plan. Mr. Hickey encouraged the IOC to consider the larger picture in terms of possibilities regarding major capital improvements that fundamentally change the reliability of the Intertie. He believes it would be helpful to view the broad concept as perhaps a maintenance plan and a long-term capital improvement plan that increases the overall transfer capability. Chair Burns agreed. He highlighted that the Intertie's past maintenance and reliability has been incredible. Chair Burns believes that the focus going forward should include discussions on expanding the value of the asset within the Railbelt system and ensuring the ongoing integrity of the Intertie. Chair Burns recommended that based on this dialog, the IOC will take direction to IMC Meeting Minutes - October 1, 2021 set forth a proposal that addresses long-term maintenance evaluations and strategic approaches regarding expansion, viability, and the continued robust service of the asset. He expressed support for the comments that the IOC should think through a strategic plan and then present it to the IMC at the next meeting. 8. OLD BUSINESS - None MOTION: Mr. Hickey made a motion that IMC enter an executive session to discuss matters the immediate knowledge of which would clearly have an adverse effect upon the finances of AEA, the Intertie, the IMC or any of its members. Motion seconded by Mr. Jenkin. The motion was approved without objection. 9. EXECUTIVE SESSION: 9:22 a.m. Discuss matters with Attorney for the Committee the immediate knowledge of which would clearly have an adverse effect upon the finances of AEA, the Intertie, or the IMC or any of its Members The Committee reconvened its regular meeting at 9:39 a.m. Chair Burns advised that the Committee did not take any formal action on the matters discussed while in executive session. 10. COMMITTEE REPORTS 10A. OC Report/ Operators Report Mr. Warner reviewed the IOC Report that is included in the member packet. The IOC met on September 10, 2021. The next meeting will occur in November. The GE Service Contract related to the three SVCs expired on September 1, 2021. AEA is working diligently with GE to negotiate a new contract to maintain the SVCs. GE has agreed to provide ongoing phone service during the negotiations. Mr. Warner discussed that the Lake Lorraine to Reddington Substation project has been removed from the IOC agenda. The intention is to study the issue. The appropriation money of approximately $6.9 million is no longer available for the project. Mr. Warner reviewed the subcommittee updates. The Dispatch and System Operations Subcommittee is working on the development of a process to return the grid back to Tie Line Bias after an event. He discussed the example of what occurs when a utility loses a generator. Constant frequency is entered and all of the utilities in the reserve -sharing group help maintain frequency and back up the utility that lost the generator. The intent is that there is a process to restore the system back to the Tie Line Bias schedule. The dispatch centers currently work well together without a defined process. This effort is to define the process of how to go back to Tie Line Bias after a system event. Mr. Warner discussed that the Engineering, Relaying and Reliability Subcommittee has been requested to install out of step protection at Douglas to improve the reliability of the Intertie. The SCADA and Telecommunications Subcommittee is developing a final scope of work for the communications project from Teeland to Douglas. That subcommittee is currently working with IMC Meeting Minutes - October 1, 2021 4 AEA to tighten the budget request. More information is expected to be presented at the next IMC meeting. The Douglas to Healy communication upgrade project is being tested and reviewed. It is possible that the budgeting will be derived from the $1.8 million appropriation by AEA. Mr. Warner noted that the Operations, Maintenance and Scheduling Subcommittee is currently working on the Railbelt's coordinated Vegetation Management Plan written by MEA and GVEA. The review is ongoing. It will be brought before the IOC, and then will be brought before the IMC. Mr. Warner advised that a LIDAR survey presentation is anticipated at the next IOC meeting. He believes it will be very informative and he may request that the information be presented to the IMC, if appropriate. Mr. Warner discussed that there was an Intertie trip on June 3, 2021. The event began at 9:46 p.m. and ended at 10:37 p.m. There was a single phase to ground between Douglas and Teeland that took out the Intertie. After the trip, discussions occurred regarding the oscillations on the system that dampened out in about 90 seconds. The affected area was between the Southcentral part of the Railbelt and the Peninsula. Mr. Warner presented the IOC Quarterly Reliability Report, representing the third quarter. He noted that the system has not gone into load shed in the third quarter. The HPS (Highway Park Substation) Bus Fault event listed in the report was loss of load and not a load shed event. Mr. Hickey requested that the IOC be tasked with determining the magnitude of the oscillations from the June 3' outage and report the information back to the IMC. Mr. Warner agreed. There were no other questions. Chair Burns advised that he was remiss after executive session. No action was taken in executive session, but there is a motion that is appropriate related to retaining council. He requested that the motion be taken up now. MOTION: Mr. Hickey made a motion to retain Joel Paisner as the IMC general council and to approve the transition period with Council Gibson, as discussed in executive session. Motion seconded by Mr. Jenkin. The motion was approved without objection. Chair Burns congratulated Mr. Paisner and looks forward to the working relationship. 10B. Budget to Actuals Chair Burns invited Melissa Yang, AEA, to present the Budget to Actuals Report. Ms. Yang discussed that the revenues for FY21 were $635,000 more than budgeted. The actual megawatt usage overall was 196,640 Mwh. The actual megawatt usage for GVEA was about 72,000 Mwh more than budgeted. The total operating costs were under budget by $44,000. The report shows the multiple areas that were under budget and the multiple areas that were over budget. The total IMC Meeting Minutes - October 1, 2021 administration costs were under budget by $66,000. The FY21 year-to-date actuals concluded with a surplus of approximately $188,000. Chair Burns commented that it is nice to see a budget surplus. He noted that his understanding is that the surplus is carried forward and will be addressed at a later date. Ms. Yang informed that the audit is ongoing and the report will not be finalized until after the audit, at which time the final surplus amount will be announced. There were no questions. 11. COMMITTEE ASSIGNMENTS Chair Burns assigned the IOC to review and strategize the issues discussed under New Business and to report back to the IMC with a strategic plan. Mr. Warner agreed. 12. MEMBER COMMENTS Mr. Warren thanked Chair Burns for adding the Status of the Intertie as an agenda item. He believes the discussion is important and he is glad it is occurring at the IOC level. Mr. Warren welcomed Mr. Paisner and thanked Kirk Gibson, McDowell Rackner & Gibson PC. Mr. Hickey echoed Mr. Warren's comments. Mr. Jenkin welcomed Mr. Paisner. He noted that communications have been sent regarding the changes in staffing at MEA. DJ Davis is the member on the Maintenance Committee and Gary Meadows is the alternate. The Committee will have to select a new Chair. Chair Burns appreciated members' patience during his first meeting as Chair. He thanked Ms. Bertolini for the efficiency of providing the materials prior to the meeting. Chair Burns welcomed Mr. Paisner. He commented that the Intertie is a critical asset to the Railbelt and he expressed appreciation for the IOC's focus on the issues. 13. NEXT MEETING DATE - December 10, 2021 Chair Burns informed that the next is December 10, 2021. 14. ADJOURNMENT There being no further business of the AIMC, the meeting adjourned at 9:55 a.m. John Burns, Chair Kirk Warren, Secretary IMC Meeting Minutes - October 1, 2021 6 administration costs were under budget by $66,000. The FY21 year-to-date actuals concluded with a surplus of approximately $188,000. Chair Burns commented that it is nice to see a budget surplus. He noted that his understanding is that the surplus is carried forward and will be addressed at a later date. Ms. Yang informed that the audit is ongoing and the report will not be finalized until after the audit, at which time the final surplus amount will be announced. There were no questions. 11. COMMITTEE ASSIGNMENTS Chair Burns assigned the IOC to review and strategize the issues discussed under New Business and to report back to the IMC with a strategic plan. Mr. Warner agreed. 12. MEMBER COMMENTS Mr. Warren thanked Chair Bums for adding the Status of the Intertie as an agenda item. He believes the discussion is important and he is glad it is occurring at the IOC level. Mr. Warren welcomed Mr. Paisner and thanked Kirk Gibson, McDowell Rackner & Gibson PC.. Mr. Hickey echoed Mr. Warren's comments. Mr. Jenkin welcomed Mr. Paisner. He noted that communications have been sent regarding the changes in staffing at MEA. DJ Davis is the member on the Maintenance Committee and Gary Meadows is the alternate. The Committee will have to select a new Chair. Chair Burns appreciated members' patience during his first meeting as Chair. He thanked Ms. Bertolini for the efficiency of providing the materials prior to the meeting. Chair Burns welcomed Mr. Paisner. He commented that the Intertie is a critical asset to the Railbelt and he expressed appreciation for the 10C's focus on the issues. 13. NEXT MEETING DATE - December 10, 2021 Chair Burns informed that the next is December 10, 2021. 14. ADJOURNMENT no further business of the AIMC, the meeting adjourned at 9:55 a.m. IMC Meeting Minutes - 06tober. 1, 2021 6