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IMC Meeting Minutes ‐ December 10, 2021 1
Alaska Intertie Management Committee (IMC)
REGULAR MEETING MINUTES
Alaska Energy Authority Board Room
Friday, December 10, 2021
1. CALL TO ORDER
Chair John Burns called the meeting of the Alaska Intertie Management Committee to
order on December 10, 2021, at 9:00 a.m. A quorum was established.
2. ROLL CALL FOR COMMITTEE MEMBERS
Members present: John Burns (Golden Valley Electric Association (GVEA)); Jeff Warner
(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);
Salina Bearden (AEA); Owen Berklund (AEA); Jennifer Bertolini (AEA); Dona Keppers (AEA);
David Lockard (AEA); Sherri Highers (CEA); Brian Hickey (CEA); Russell Thornton (CEA);
Stefan Saldanha (Department of Law); Dan Bishop (GVEA); Ron Woolf (GVEA); Larry
Jorgenson (HEA); Kirk Gibson (McDowell Rackner & Gibson PC); David Pease (MEA); and
Bernie Smith (Public).
4. AGENDA APPROVAL
MOTION: Mr. Warner 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 – October 1, 2021
Chair Burns complimented and expressed appreciation to Jennifer Bertolini, AEA,
regarding the preparation of the minutes. He believes the minutes provided an articulate
and intelligent representation of the meeting and that the extensive record was beneficial
IMC Meeting Minutes ‐ December 10, 2021 2
to the Intertie Operating Committee (IOC). Ms. Bertolini recognized Accu-Type
Depositions as the transcription service provider.
MOTION: Mr. Warner made a motion to approve the Meeting Minutes of October
1, 2021. Motion seconded by Mr. Warren.
Chair Burns requested that the word “system” replace the word “structures” in the last
paragraph on page three. The sentence should read, “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.” There was no
objection to the friendly amendment.
The Minutes of October 1, 2021, as amended, were approved without objection.
7. NEW BUSINESS
7A. 2022 Proposed IMC Meeting Dates
Chair Burns advised that the 2022 proposed IMC meeting dates have been provided to
members.
MOTION: Mr. Warren made a motion to approve proposed IMC meeting dates for
2022. Motion seconded by Mr. Warner.
The motion was approved unanimously.
7B. FY21 Surplus approval
Chair Burns requested Dona Keppers, AEA, speak to the approval of the FY21 surplus to
be refunded. Ms. Keppers discussed the paperwork included in the packet entitled Alaska
Intertie – Actual Vs. Budget, estimated FY21 surplus to be refunded. The actual revenues
totaled $635,106 more than budgeted for FY21. The actual expenses totaled $109,887
less than budgeted for FY21. The budgeted shortage totaled $556,839, yielding a net
refund of $188,154.
Chair Burns asked if the discussed estimated FY21 surplus numbers are finalized amounts.
Ms. Keppers agreed the numbers are solid and the amount is final. She advised that page
four of four delineates the true-up calculation of the refund amount of $188,154. The
refund by utility is as follows: Golden Valley Electric Association (GVEA) at $128,700;
Chugach Electric Association (CEA) at $25,622; and Matanuska Electric Association (MEA)
at $33,831. There were no additional questions.
IMC Meeting Minutes ‐ December 10, 2021 3
MOTION: Mr. Warner made a motion that the Alaska Intertie Management
Committee approve the $188,154.90 refund to the utilities as presented in the 2021
Alaska Intertie Annual True-Up calculation handout. Motion seconded by Mr.
Warren.
The motion was approved unanimously.
8. OLD BUSINESS
8A. Strategic Plan for Intertie (IOC)
Chair Burns discussed the extensive dialog that occurred at the previous meeting
regarding the current integrity of the Intertie, as well as future goals for the Intertie. He
noted that the IOC was tasked with developing a forward-looking strategic plan. Chair
Burns requested that Mr. Warner discuss the included draft of the Alaska Intertie Asset
Management Plan. Chair Burns complimented Mr. Warner and the IOC for creating such
a tremendous outline. Mr. Warner expressed appreciation to the IOC for the excellent
group effort and participation in developing the plan. The intent of the draft is to confirm
with the IMC that the path of the outline is consistent with the assignment.
Mr. Warner discussed that the IOC focused on pertinent items and specifically avoided
duplicative ongoing Railbelt efforts. He requested that IMC members provide feedback
regarding additions or deletions to the outline. Mr. Warner indicated the intent is that
some of the tasks will be assigned internally and some of the tasks will utilize outside
consultants, requiring a budget for those items. He explained that the Asset Management
Plan will describe overall information, including the purpose, background and history of
the Intertie. The plan will report the current condition of the asset and will correlate the
pertinent information to one location. Facility maintenance and repair history will be
included.
Mr. Warner described that the plan will convey the decision-making process moving
forward. The preventative maintenance plan was assigned to and initiated by the
Operations and Maintenance Subcommittee, O&M. The intent is for the maintenance
plan to encompass a cycle. Replacements have been made. The plan will include the
development of the projected overall life cycle costs. This information will be available in
a central and accessible location. The plan will include discussion regarding repair and
maintenance budget cash flow and creative financing accounts for the aging Intertie asset.
Mr. Warner discussed that the plan will include an effort to identify any capital projects
going forward and to identify potential financing for those projects. Site controls within
IMC Meeting Minutes ‐ December 10, 2021 4
the plan will consist of maintaining the land leases and right-of-way agreements. Mr.
Warner described the asset management software is an important aspect to maintaining
accurate records of the equipment. Modeling of the Intertie assets could include
Geographic Information System (GIS) Mapping. An equipment and materials database is
recommended for the Intertie assets.
Mr. Warner highlighted the recommendation to include ways to determine the best uses
of the Intertie in the future. He supports the utilization of production cost modeling. Mr.
Warner gave examples of scenarios wherein a certain amount of power moved up or down
the Intertie was beneficial. He believes this modeling would be a worthwhile effort. Mr.
Warner encouraged the use of power flow and stability studies. Currently, the IMC
subcommittees conduct system studies. He recommends that these efforts continue in
practice and that additional studies are developed. Mr. Warner suggested that the effects
of load changes are explored and identified. He discussed that reserve sharing
opportunities are ongoing and current options are being examined within the System
Studies Subcommittee. It is anticipated this will bring allocation to spin and he believes
this effort should continue to be included in the efforts.
Mr. Warner considers the discussions regarding the impacts of system upgrades, such as
increasing the Intertie operating voltage, are important to include in this scope of work.
He noted the relevance of information regarding the retirement or the addition of a
particular resource. Healy #1 and Healy #1 are listed in the outline for this reason. The
N-1 contingencies affecting the Intertie include the current restriction and Intertie
limitation if the 230 kV line between Pt. MacKenzie and Teeland is out. Additionally, there
are potential impacts from the O’Neil tap path to McRae project.
Mr. Warner reviewed the importance of examining the elements of price, availability,
carbon reduction plans or renewable portfolio standards (RPS) related to the generation
of fuel sources. He noted that the IOC deliberated and decided to include climate change
issues within the outline, such as wildfires, erosion, and melting permafrost. The Asset
Management Plan will culminate with conclusions and recommendations. Mr. Warner
advised that the information will be maintained in a central location. The suggestion is to
require the State and the entities associated with the Intertie to participate in providing
the information contained in the appendices.
Mr. Warren echoed the previous comments of Chair Burns regarding the IOC’s diligent
efforts in preparing this outline and providing a tangible path forward. He agreed with
the intent of having a centralized location for access to the data. He believes the utilities
have high-level IT staff and cybersecurity protection, and suggested that cybersecurity
protection is considered during the process. Mr. Warren asked members if this plan is
IMC Meeting Minutes ‐ December 10, 2021 5
intended to be a living document that will be reviewed and updated annually with new
recommendations. He noted that the IOC currently has a similar course of action during
the budgeting process and the development of capital projects. Mr. Warner agreed, and
he believes a living document perspective is appropriate. He suggested that the plan
contain specific wording that explains how the conclusions and recommendations are to
be maintained on an ongoing basis.
Chair Burns commented that he envisions a comprehensive review of the asset
management strategic plan document every six months or annually. He agreed that
centralization of the information is critical to ensure the integrity of the process going
forward.
Mr. Jenkin noted that Mr. Warner mentioned that there is no intention of developing an
IRP and recognized that there is another body being formed to complete that level of
work for the Railbelt. Mr. Jenkin expressed that his expectation is once the Railbelt’s
electric reliability organization is formed, and an IRP is produced, it will have a significant
amount of impact on the asset management strategic plan document going forward. The
current procedures rely upon each utility providing their best information regarding their
generation facilities and pricing. Mr. Jenkin looks forward to the development of the
strategic plan document, to the development of the IRP, and to the continuing positive
efforts of the Railbelt utilities.
Mr. Hickey commended Mr. Warner and the IOC for their work on the asset management
plan. He believes it would be worthwhile for the IOC and the IMC to conduct a half-day
strategic planning retreat to discuss priorities and potential costs. He expressed
appreciation for the comprehensive document.
Chair Burns echoed the comments of appreciation to the IOC and believes the document
captures the essence of the discussions of the previous meeting to both maintain the
assets and to maximize their potential benefits. He recognized that the previous
discussions grappled with the terminology in reference to what to title the document.
Chair Burns noted that he did not see cybersecurity included within the plan. He believes
it is important to review how cybersecurity issues relate to the Intertie. Chair Burns hopes
that the IOC will be a complimentary part of the dialog regarding the development of the
long-term IRP and other ongoing studies. This will enable the IOC to be aware of the
current happenings and to be able to provide data, as appropriate.
Chair Burns noted that Mr. Jenkin commented at the previous meeting regarding N-1
issues and single point of failure concerns. He suggested that the Committee consider
developing a risk/value profile or other format that identifies critical single points of failure
IMC Meeting Minutes ‐ December 10, 2021 6
locations in order to monitor and focus on prevention and avoidance of ripple effects.
Chair Burns asked Mr. Warner for the IOC’s plan for next steps. Mr. Warner discussed that
he anticipates the next steps include setting a deadline for the O&M Subcommittee to
develop the preventative maintenance plan and reviewing the outline to find the tasks
that can be started easily and assigned to different subcommittees. He emphasized that
this process is driven by a top-down approach, and it is important to develop prioritization
and clear direction in order to allow the plan to efficiently function.
Chair Burns commented that this is an ambitious undertaking and he expressed that the
IOC is looking to Mr. Warner for guidance on how to provide the necessary top-down
recommendations and prioritizations. Mr. Warner explained that the IOC and other
subcommittees contain the Railbelt expertise to identify the specific needs that will then
be brought to the IOC to determine the prioritization schedule.
Mr. Jenkin added to the comments of Mr. Warner regarding the utilization of an outside
consultant, possibly as an overall project manager. Mr. Jenkin noted that the utilities are
engaged in other activities that require various staff time commitments. He suggested
that discussions occur to determine what can be accomplished internally and how to
move forward with needed supplemental help.
Mr. Hickey expressed support for conducting a joint meeting of the IMC and IOC to
brainstorm the prioritization of issues and to discuss potential costs. He agrees that the
potential of bringing on a project manager that is outside the normal flow of events is a
good idea.
Mr. Warren expressed support for conducting a strategy session. He views this plan as a
process document in conjunction with other entities throughout the Railbelt.
Mr. Warner expressed full support of engaging a project manager and conducting a
strategy session.
Chair Burns reiterated that the IMC seeks recommendations from the IOC regarding next
steps and needs, and the consulting process. The information could be reviewed at the
next IMC meeting.
9. COMMITTEE REPORTS
9A. OC Report/ Operators Report
Mr. Warner reviewed the IOC Report that is included in the member packet. The IOC met
on December 3, 2021. The Report lists the IOC assignments that were given by the IMC.
IMC Meeting Minutes ‐ December 10, 2021 7
The first assignment regarding the development of an Intertie Asset Management Plan
was discussed in the previous agenda item. The assignment regarding the system
oscillations is attached to the Report and will be discussed later in the presentation. AEA
and GVEA are finalizing the draft report recommendation for the IOC regarding the
demarcation point for the transfer of equipment and assets. The final recommendation
will be presented at the February IOC meeting. The IOC will then bring it forward to the
IMC for consideration.
Mr. Warner reported on the discussion regarding the Marker Ball Project that was
previously scheduled within the FY22 Budget. Due to anticipated outages that conflict
with the schedule, the project manager MEA agreed to move the project to July. The item
will be removed out of the FY22 Budget and placed into the FY23 Budget. Mr. Warner
will collaborate with AEA and the Budget Subcommittee to finalize the recommendation
and then bring it before the IMC possibly at the next meeting.
Mr. Warner discussed the brief LIDAR presentation given at the IOC meeting by GVEA.
The IOC requested that the O&M Subcommittee work with GVEA to review the report and
determine the critical issues that need prompt attention and the non-critical issues that
can be addressed in the future. Some of these findings will inform the preventative
maintenance plan. Mr. Warner indicated that after the findings are presented to the IOC,
he will make the information available to the IMC, if desired.
Mr. Warner highlighted the subcommittee updates listed in the report. The Dispatch and
Systems Operations Subcommittee assignment is ongoing regarding developing a
process to return the system back to Tie Line Bias after a disturbance. The Engineering,
Relaying and Reliability Subcommittee’s work is ongoing to install out of step relaying
protection at Douglas Substation. The Machine Ratings Subcommittee is engaged in their
longstanding assignment to update the online machine database. The Chair of the
Subcommittee has been requested and agreed to attend an IOC meeting to provide
additional information. Discussion have occurred to revise the existing tool and a
recommendation is expected to be made to develop a common and accessible database
to house the information.
Mr. Warner noted that the SCADA and Telecommunications Subcommittee is working on
the final scope of the Douglas project. The key idea is to collaborate with AEA to procure
the work. Mr. Warner requested Mr. Warren provide additional information. Mr. Warren
explained that the funding was appropriated by the Legislature for the extension of the
Intertie.
IMC Meeting Minutes ‐ December 10, 2021 8
Mr. Warner discussed the ongoing project of the requirements to upgrade
communication between Douglas and Healy. The O&M Subcommittee is one of the
busiest groups under the IOC and IMC has been tasked with reviewing the Intertie
Vegetation Management plan. He understands that GVEA and MEA are working closely
to formalize a plan. The new task to develop a preventative maintenance plan is
anticipated to be completed within the next few months.
Mr. Warner conveyed new concerns regarding lightning arrestors and static lines on the
Intertie. The assignment was made for the O&M Subcommittee to evaluate the type,
condition, and lifecycle of the current arrestors and to make a recommendation regarding
replacement. As discussed previously, the LIDAR survey final report will move forward.
Mr. Warner reported that the System Studies Subcommittee has ongoing assignments
with the Reserves Study and the Oscillation Study, and they will provide an update at the
next IOC meeting.
Mr. Warner discussed the assignment by the IMC regarding the June 3rd outage. He noted
that it is incumbent upon each utility to manage and complete the recommended changes
from the Oscillation Study. GVEA has completed the tuning of Healy 1 and Healy 2. GVEA
has chosen not to disable the BESS Power System Stabilizer (PSS), as recommended in the
study, in order to maintain existing contingency reserves. HEA is in the process of
completing a voltage control study before their PSS tuning commences. CEA has Beluga
Units 3 and 5 that were identified in the study, but those units rarely run. The discussion
is ongoing if it is worthwhile to tune those resources. Further direction was given to the
SSS Committee to determine if that action needs to move forward.
Mr. Warner informed that an Intertie trip occurred on October 26, 2021, between Douglas
and Healy. The line tripped at 3:52 pm and was back in service at 4:09 pm. The cause was
likely a transient fault. The line has not tripped since and there does not appear to be a
problem. The Intertie is being switched out of service today north of Douglas due to snow
loading. Certain amounts of snow levels trigger a physical inspection. The sagging line
problem and one broken insulator was found during the physical inspection of the
Intertie.
Mr. Warner reviewed the included report regarding the June 3, 2021, Intertie trip and the
two separate oscillations. The largest power swing was 223 MW between the generators.
All units participated and Bradley Lake had the most extensive participation on the
southern end and SPP and 2A had the most extensive participation on the northern end.
Mr. Warner discussed that CEA dispatchers disabled the droop contribution of the
resources at SPP and 2A, which minimized the oscillations.
IMC Meeting Minutes ‐ December 10, 2021 9
Mr. Warner discussed the recommendations presented in the report. The power
oscillation damper (POD) tuning at the Soldotna and Daves Creek static VAR
compensators (SVC) was completed in September of 2021. HEA is in the process of
soliciting requests for proposals (RFP) for the tuning of the PSS at Bradley Lake and Nikiski.
Examination of the Bradley Lake dividers is recommended to understand how they
interact during a system disturbance and how they contribute to the oscillations.
Additional work is planned for SPP and 2A tuning.
Mr. Hickey gave a practical explanation of what happens during an oscillation at 0.9 Hz.
The peak-to-peak power from positive to negative occurs in 1.1 seconds. The duration
was 90 seconds. The equivalent mechanical horsepower to 230 MW is about 308,435
horsepower. The units experienced a 308,000 hp force buried in the physical components
of the plant in the generator windings and mechanical shafts and then like a spring,
whipped back to the northern area and then back again for those 90 seconds. The issue
is huge, and it is improbable that any of the Railbelt equipment was designed to
experience 308,000 hp forces going back and forth every 1.1 seconds for 90 seconds.
Mr. Hickey discussed that the same oscillation event occurred on June 6, 2020.
Additionally, the same event occurred in the early 1990’s, and millions of dollars were
spent at Bradley Lake determining the cause of the problem. Mr. Hickey informed that
he outlined the findings in a White Paper that he wrote to Kirk Gibson, Department of
Law, justifying the batteries as required project work. Mr. Hickey explained that the
fundamental problem is that the turbine pit design at Bradley Lake is small and unable to
waste the water into the sump without creating interference patterns within the turbine
pit when the dividers cut into the stream to respond to the overspeed. These events occur
when the Bradley Lake Project is at low lake levels and there is practically no way to work
around the event. Mr. Hickey discussed that the determination was reached by the
building of a Swiss-designed homologous scaled model of the Bradley Lake plant that
measured and reconstructed critical components of the project. Mr. Hickey suggested
that the SSS meet with Bradley Lake folks to gain a common understanding of this issue.
Mr. Jenkin added to Mr. Hickey’s comments and noted that the battery project appears
to be the most economical way to eliminate the oscillations with battery placement in an
area that will significantly support the system. The battery project would also allow
Bradley Lake to continue to operate without placing such stress on the system and risking
possible catastrophic failure.
Chair Burns agreed that the battery project is required project work. He understands that
the problem is emanating out of Bradley Lake and is creating significant issues that need
to be resolved. Chair Burns expressed appreciation to Mr. Warner for his leadership on
both committees. There were no other questions.
IMC Meeting Minutes ‐ December 10, 2021 10
9B. Budget to Actuals
Chair Burns invited Ms. Keppers to present the Budget to Actuals Report. Ms. Keppers
discussed the two-page status included in the packet for the period of July 1, 2021,
through August 31, 2021. The year-to-date (YTD) revenues were $568,341, and the YTD
expenses were $238,521, resulting in a surplus. The budgeted usage and actual usage for
the same period was shown on page two. The budgeted energy rate was $8.92. The
actual energy rate was less than budgeted at $7.29.
Mr. Jenkin asked if it is correct that no adjustments are being made to the budgeted
energy rate based on the actual energy rate, and that the budgeted energy rate stays
constant, until the Committee changes the rate. Ms. Keppers agreed. There were no
additional questions.
10. COMMITTEE ASSIGNMENTS
Chair Burns noted that the IOC has the continued assignment to advance the strategic
planning. Mr. Warner agreed.
11. MEMBER COMMENTS
Mr. Hickey expressed appreciation for the hard work of the IOC. He believes this is a step
forward for the organization and that movement is occurring on critical issues that have
been discussed and planned for a long time.
Mr. Jenkin commented that the IOC functions well because of Chair Warner’s leadership
and management of the Committee and working with the Subcommittees to accomplish
their efforts. He expressed appreciation for the work completed for the Oscillation Study
and for the presentation that emphasizes the underlying issues.
Mr. Warren echoed the previous comments and noted that the IOC is doing fabulous
work. He believes the Preventative Maintenance Plan is a great foundational document
and encouraged the IMC and IOC to engage in a strategic planning session. Mr. Warren
thanked the Budget Subcommittee for their productive efforts over the last quarter. He
expressed appreciation to Chair Burns.
Chair Burns echoed the accolades for Mr. Warner and the IOC. He commented on the
importance of good leadership and good committee members. He thanked the IOC for
their efforts. Chair Burns believes that the IOC plan will put the Intertie in good stead for
IMC Meeting Minutes ‐ December 10, 2021 11
a long time. He stated that the oscillation incident is obviously disconcerting, and
expressed appreciation that the IOC is focusing on the root cause analysis and the
resolution of the issue.
12. NEXT MEETING DATE – January 28, 2022
Chair Burns informed that the next is January 28, 2022.
13. ADJOURNMENT
There being no further business of the IMC, the meeting adjourned at 10:10 a.m.
____________________________________
John Burns, Chair
_____________________________________
Kirk Warren, Secretary