HomeMy WebLinkAbout2023.05.05 IMC Executed MinutesAlaska Intertie Management Committee (IMC)
REGULAR MEETING MINUTES
Alaska Energy Authority Board Room
Friday, May 5, 2023
1. CALL TO ORDER
Chair Ed Jenkin called the meeting of the Alaska Intertie Management Committee to order on
May 5, 2023, at 8:31 a.m. A quorum was established.
2. ROLL CALL FOR COMMITTEE MEMBERS
Members present: Ed Jenkin (Matanuska Electric Association (MEA)); Andrew Laughlin
(Chugach Electric Association (CEA)); Nathan Minnema (Golden Valley Electric Association
(GVEA)); and Bill Price (Alaska Energy Authority (AEA)).
3. PUBLIC ROLL CALL
Public present: Allison Capps (Accu-Type Depositions); Joel Paisner (Ascent Law Partners);
Jennifer Bertolini (AEA); Bryan Carey (AEA); Pamela Ellis (AEA); Michael Korniczky (AEA);
Mark Ziesmer (AEA); Mike Miller (CEA); Russell Thornton (CEA); Dan Bishop (GVEA);
Keith Palchikoff (GVEA); David Pease (MEA); Jon Sinclair (MEA); and Bernie Smith (Public).
4. PUBLIC COMMENTS — None
5. AGENDA APPROVAL
MOTION: A motion was made by Vice -Chair Laughlin to approve the agenda. Motion
seconded by Mr. Price.
The agenda was approved without objection.
6. APPROVAL OF PRIOR MINUTES— March 24, 2023
MOTION: A motion was made by Vice -Chair Laughlin to approve the Meeting Minutes of
March 24, 2023. Motion seconded by Mr. Price.
Chair Jenkin reminded members to state their names when they comment. Chair Jenkin
requested that the second line on page seven of the Minutes are corrected from "Mr. Burns gave
a brief history," to "Chair Jenkin gave a brief history". There were no objections to the
amendment.
The Minutes of March 24, 2023, as amended, correcting Mr. Burns to Chair Jenkin on the
second line of page seven, were approved without objection.
IMC Meeting Minutes — May 5, 2023
7. OLD BUSINESS
7A. Raflbelt Synchro-Phasor Project
Chair Jenkin informed that the Railbelt Synchrophaser Project is currently included in the budget
at $250,000. He explained that this agenda item is for IMC discussion to determine whether the
project remains in the budget during the budget approval item later in the meeting. Chair Jenkin
noted there is a significant ongoing expense associated with the services of the project of
approximately $200,000 per year.
Mr. Price explained that the commitment is an initial expense of approximately $150,000, and if
all goes as planned, the $250,000 will be expended by the end of FY24. After which time, the
IMC would decide whether to move forward. Mr. Price discussed that a commitment to expend
the $250,000 in FY24 does not require that funds must be expended on an ongoing basis. The
IMC would make that decision after the initial trial period.
Chair Jenkin noted that the Meeting Minutes reflect that Phase One is budgeted for $100,000.
Phase Two is budgeted for $250,000, and there is an ongoing budgeted amount of approximately
$280,000 each year following. He asked if the proposal today is only to approve Phase One
within this budget. Mr. Price clarified that the initial commitment is $250,000. Phase One is
$100,000 and Phase Two is $150,000, totaling $250,000 in FY24. If the project is adopted as
currently planned, the ongoing expense would be approximately $280,000 per year. Chair Jenkin
asked if there is value in completing Phase One before a final decision is made. He commented
that he is not a fan of the project.
Vice -Chair Laughlin requested additional information regarding the scope, benefits, and
expected results from the pilot project and phases. Mr. Price explained that one of the reasons for
the phased approach is that GVEA is ready to advance the program, whereas CEA and MEA
have work to complete before they are ready to advance the program. Mr. Price asked Keith
Palchikoff, GVEA, to provide additional information. Mr. Palchikoff explained that the project is
a turnkey service package that will minimize utility effort. After the initial infrastructure costs,
the subscription price is on an annual basis and is approximately $250,000 to $280,000. The
phased approach to the project allows MEA and GVEA to complete the work needed to
implement the program. Phase One would include real-time data collection for each utility.
Phase Two would combine the information into a common software and database user system for
the Railbelt. If the project was successful after Phases One and Two, the subscription could be
renewed annually.
Mr. Palchikoff discussed that the project is valuable and has a distinct positive return on
investment. He referenced a memorandum he submitted illustrating specific use cases, including
the ability to validate and maintain the Railbelt PSSE model. Many proposed and ongoing
Railbelt projects rely on the accuracy of the PSSE model regarding investment decisions.
Furthermore, the synchrophaser software could provide rapid reporting of system disturbance
events that could be communicated to stakeholders. Another beneficial function of the software
is the identification of Railbelt oscillation modes. Currently, there is no way identify the source
of the oscillation or to measure or document if the remediation plans are effective. Additionally,
IMC Meeting Minutes — May 5, 2023 2
if the software is successful, it would optimize the use of the transmission system in real-time
through the dispatch center.
Mr. Palchikoff informed that the System Study Subcommittee (SSS) has contributed much time
and effort in researching the best path forward. An official competitive procurement through the
Request for Proposals (RFP) process was conducted and resulted in five vendor proposals.
Utility stakeholders provided input and feedback on the project. This system is not unique to
Alaska. It is widely deployed throughout the NERC regions in the continental U.S.
Vice -Chair Laughlin asked if this project integrates with existing synchrophaser systems. Mr.
Palchikoff explained that the synchrophaser data is a generic standard with the IEEE
specifications and the proposed system would integrate. He explained that within Phase One,
CEA currently has a system for collecting synchrophaser data that will be redirected into the
common repository. The initial cost could likely be less than the estimates, due to the current
capabilities.
Chair Jenkin noted that during the budget section of the meeting, he will comment that 90% of
the power that moves on the Intertie is from GVEA and these types of expenses would be most
beneficial to that flow.
Mr. Price commented that even though the current project is focused on the Intertie, the long-
term goal would be to deploy the synchrophaser system from Homer to Fairbanks. He discussed
that the decision today regards the project's inclusion in the budget. The IOC is currently
working on an implementation plan. The IOC has not yet endorsed the synchrophaser project,
due to the lack of an implementation plan. There were no other questions.
7B. Intertie Vegetation Management Plan
Chair Jenkin commented that the Intertie Vegetation Management Plan is a significant line item
within the budget. Both the clearing effort activity and the cost for clearing are considerably
higher than the historical amount. He noted that an additional $400,000 is included for the
remote sensing and analysis associated with the clearing program. Chair Jenkin requested
member comments regarding the scope of the remote sensing and analysis portion of the clearing
budget. There were no comments or questions.
8. COMMITTEE REPORTS
8A. Budget to Actuals Report
Mark Ziesmer, AEA, discussed the Budget to Actuals Report for the period ending March 31,
2023. Total revenues were at $2,121,769, which is approximately $598,000 under budget due to
less than anticipated energy usage. Operating expenses were $776,346, which is under budget
primarily due to lower than expected miscellaneous transmission expense and maintenance of
overhead lines. Work is anticipated to begin soon. The total administration expenses were
$91,809, which is $58,191 under budget. Mr. Ziesmer indicated that the calculated surplus today
is $1,253,615, which is approximately $200,000 above this time for FY22.
IMC Meeting Minutes — May 5, 2023 3
Chair Jenkin asked Mr. Minnema if the northern clearing will be completed before the end of the
budget year. Mr. Minnema agreed, and fully expects to utilize the clearing funds this fiscal year.
Chair Jenkin commented that he anticipates that the warning marker ball project will begin this
fiscal year, and that much of the budgeted funds will be utilized. Chair Jenkin is hopeful that the
anticipated under -utilization and under budget amounts are proportionate at year-end. There were
no other comments or questions.
8B. IOC Report
Chair Jenkin requested Jon Sinclair, MEA, to present the IOC Report. Mr. Sinclair noted that
much of the information has been discussed during today's meeting. He explained that the
overall usage rate has increased due to the larger budget and a decrease in energy usage. The
updated budget includes modifications for additional LIDAR and engineering regarding
clearances specific to the five miles of line that have concerns with the insulators.
Mr. Sinclair discussed that in addition to the synchrophaser project, the SSS is developing the
scopes for the current studies regarding inverter based resources and the impacts of upgrading
the Northern Intertie to 230 W. Mr. Sinclair informed that the SCADA Subcommittee is
reviewing potential projects, including the improvement of communication between Anchorage
and Douglas. This capital project would be funded from resources outside of the budget. Staff is
actively working to get documentation to AEA in order to begin the work and completion is
expecte in 2024. Additionally, funding may be available for communication infrastructure
between Douglas and Healy. Mr. Sinclair reviewed that inadvertent accounting was discussed
and further analysis needs to occur. He requested clarification from the SCADA subcommittee
and noted that additional information is expected.
Chair Jenkin commented that CEA, MEA, and GVEA have the same basic SCADA software,
which includes inadvertent accounting. He encouraged the utilities to use the mechanism within
the software. Mr. Sinclair agreed that is included in the discussion.
Mr. Price informed that AEA will fund the installation of the Anchorage to Douglas
communication project through the Railbelt Energy Fund. A small maintenance expense will be
ongoing and will be included in future IMC budgets. Chair Jenkin asked if that portion will then
be an AEA asset. Mr. Price agreed. Mr. Price requested that any objections by the IMC are
voiced today. There were no objections.
8C. Operator's Report
Chair Jenkin invited Russel Thornton, CEA, to discuss the Operator's Report. Mr. Thornton
apologized for not providing a written Operator's Report. He noted there has been little activity.
In the last two months, there have been eight reportable events, no Intertie trips, and no
significant oscillations. The average response for the system is 9. L Mr. Thornton believes the
system is operating well and has been consistent over the last year.
IMC Meeting Minutes — May 5, 2023 4
9. NEW BUSINESS
9A. Approval of FY24 IMC Budget
MOTION: A motion was made by Mr. Price to submit the Fiscal Year 2024 Budget as
presented to Alaska Energy Authority for final approval. Motion seconded by Vice -Chair
Laughlin.
Chair Jenkin expressed support for the work to use LIDAR to identify clearance and other issues
that may be associated with reinsulating the proposed section. He noted his previous objection to
building out to 138, since a grant application was submitted for building out to 230. Chair Jenkin
informed that the identification of clearances is necessary for either build -out and voiced support.
Vice -Chair Laughlin expressed appreciation for the inclusion of the LIDAR budget item.
Regarding the synchrophaser project, he is looking forward to reviewing the project after the
pilot phase to ensure that the merits are discussed and that this is the right path forward.
A member commented that he appreciates that the annual subscription cost for the synchrophaser
project can be ended at any time if the value is not as expected.
Dan Bishop, GVEA, suggested that it would make sense for the LIDAR analysis of the section
discussed to be included in the administrative budget, rather than the maintenance budget. He
believes it is appropriate for the expense to be shared equally, rather than prorated per usage.
Chair Jenkin commented that the rebuild of the section should affect the overall reliability of the
line and the interchange of power. He believes the line item should remain in its current budget
category.
Vice -Chair Laughlin believes that the line item is appropriate in its current category.
Mr. Price gave no opinion.
Chair Jenkin asked if the synchrophaser project is under administrative expenses. Mr. Ziesmer
explained that the synchrophaser project is under operating expenses. Chair Jenkin expressed his
understanding that the synchrophaser system was part of a regional scope related to the reliability
of the Intertie and that the miscellaneous transmission study costs were to be divided equally.
Chair Jenkin asked Mr. Bishop if the items within the FERC 566 Miscellaneous Transmission
Expense category are shared equally and not through wheeling. Mr. Bishop agreed with that
understanding.
Vice -Chair Laughlin asked for a point of clarification that the total of $766,000 of administrative
costs will be shared equally, even though the amounts are under the CEA column. Mr. Bishop
agreed.
IMC Meeting Minutes — May 5, 2023 5
Mr. Minnema commented that GVEA is supportive of the budget and is supportive of the
proposed LIDAR study. He discussed that GVEA experienced recent success with LIDAR
surveys and with the useable data to perform targeted transmission maintenance. Mr. Minnema
noted that clearing costs have increased. He commented that the Cantwell switches and the tower
repair line items have had issues with timing, equipment, and price. Discussions are ongoing and
will be completed during this fiscal year. Mr. Minnema said that he looks forward to executing
the large ticket items within the budget.
There were no further comments or questions.
A roll call was taken, and the motion to submit the Fiscal Year 2024 Budget as presented to
Alaska Energy Authority for final approval passed unanimously.
10. MEMBER COMMENTS
Vice -Chair Laughlin expressed appreciation to staff and committees for the provided
information.
Mr. Price echoed Vice -Chair Laughlin's comments of appreciation.
Mr. Minnema echoed the previous comments and expressed his gratitude for standing in for John
Burns, GVEA.
Chair Jenkin commented on the difficult decisions regarding the budget. He expressed
appreciation for the effort and dialog.
11. NEXT MEETING DATE — June 23, 2023
Chair Jenkin informed that the next meeting is June 23, 2023. There were no questions.
12. ADJOURNMENT
There being no further business of the IMC, the meeting adjourned at 9:21 a.m.
Ed Jenkin, hair
Billce, Secretary
IMC Meeting Minutes — May 5, 2023 6