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HomeMy WebLinkAbout2024.07.26 IMC Executed MinutesAlaska Intertie Management Committee (IMC) REGULAR MEETING MINUTES Alaska Energy Authority Board Room Friday, July 26, 2024 1. CALL TO ORDER Chair Andrew Laughlin called the meeting of the Alaska Intertie Management Committee to order on July 26, 2024, at 9:00 a.m. 2. ROLL CALL FOR COMMITTEE MEMBERS Members present: Andrew Laughlin (Chugach Electric Association (CEA)); Travis Million (Golden Valley Electric Association (GVEA)); Ed Jenkin (Matanuska Electric Association (MEA)); and Brian Carey (Alaska Energy Authority (AEA)). A quorum was established. 3. PUBLIC ROLL CALL Public present: Sunny Morrison (Accu-Type Depositions); Jennifer Bertolini (AEA); Mark Billingsley (AEA); Pat Domitrovich (AEA); Pamela Ellis (AEA); Bill Price (AEA); Mark Ziesmer (AEA); Joel Paisner (Ascent Law Partners); Russell Thornton (CEA); Dan Bishop (GVEA); Jon Sinclair (MEA); Julian Jensen; and Zachary Casy. 4. AGENDA APPROVAL Mr. Jenkin requested that Item 7B. Grant Discussion is added to the agenda. There was no objection. MOTION: A motion was made by Mr. Jenkin to approve the agenda with the addition of Item 7B. Grant Discussion. Motion seconded by Mr. Million. The amended agenda, including Item 7B. Grant Discussion, was approved without objection. S. PUBLIC COMMENTS - None 6. APPROVAL OF PRIOR MINUTES - June 21, 2024 MOTION: A motion was made by Mr. Jenkin to approve the Meeting Minutes of June 21, 2024, as presented. Motion seconded by Mr. Million. The Minutes of June 21, 2024 were approved without objection. 7. NEW BUSINESS 7A. Annual Meeting and Election of Officers IMC Meeting Minutes - July 26, 2024 MOTION: A motion was made by Mr. Carey to nominate Mr. Million as IMC Chair and Mr. Jenkin as IMC Vice -Chair. Motion seconded by Mr. Jenkin. Mr. Jenkin clarified that the nominations for officers are utility nominations; GVEA for Chair and MEA for Vice -Chair. There was no objection. Mr. Jenkin discussed that written notice would be provided if the utility representative changed and no action would be needed by the IMC. There was agreement, and a comment was made that a letter would be provided to AEA if a utility designation was changed. A roll call vote was taken, and the motion was approved unanimously. 7B. Grant Discussion Mr. Jenkin noted that the grant was received last year through AEA for addressing snow load monitoring. He discussed two proposed projects. The first is installing a second line between Tee land and Point MacKenzie via Lake Lorraine with a tie into Reddington Substation. The second is rebuilding the line from Douglas to Healy to 230 kV, and from Douglas to Teeland at 230 W. Mr. Jenkin suggested that the Intertie Operating Committee (IOC) begin reviewing the proposed projects to define the benefits and costs, and to prepare for continued movement as the grant opportunities emerge in September. Mr. Carey commented that his understanding of Section 40101(d) grants is that reconductoring is within the grant area and new transmission lines are not within the grant area. Chair Laughlin assigned the IOC to research grant opportunities and report back to the IMC with recommendations for future projects and applications. Additionally, he assigned the IOC to review the two projects suggested by Mr. Jenkin. Mr. Million suggested that the IOC provide their report at the September IMC meeting. There was no objection and no further discussion. 8. OLD BUSINES - None 9. COMMITTEE REPORTS 9A. Budget to Actuals Chair Laughlin requested Mark Ziesmer, AEA, to provide the Budget to Actuals Report for the period through June 30, 2024. Mr. Ziesmer reminded the Committee that the report is in draft form, as additional final expenses and adjustments are anticipated to be included in the report within the next several weeks. The actual total revenue exceeded the budgeted amount by $506,080. This is due to higher than anticipated energy usage resulting in an increase of $285,799, interest income of $106,406, and other revenue of $113,875, including reimbursement expenses and surplus accrual. Mr. Ziesmer explained that operating expenses were under budget by $2,081,736. Several IMC Meeting Minutes — July 26, 2024 2 categories remain significantly under budget. He believes that some of the underspent variances will diminish as final invoices are received for FY24. Mr. Ziesmer noted, however, that Item 57102 Maintenance of Overhead Lines — Right of Way Clearing was over budget by $76,189. The administrative expenses were under budget by $14,948, and Mr. Ziesmer anticipates that the total administrative expenses will converge closer to the budgeted amount. The current financial revenues and expenses show a surplus of $2,883,916. He believes the expected final invoices will reduce the total surplus amount. Mr. Ziesmer discussed that page four of the report shows a summary comparing budgeted usage versus actual usage for the fiscal year. He noted the significant variance of 32,134 megawatt hours (MWh) between the budgeted usage and the actual usage for May and June. However, the overall usage exceeded the budgeted amount for the entire year. Mr. Ziesmer stated that all FY24 invoices are expected to be submitted to AEA by August 5, 2024. Chair Laughlin asked for an estimate of the anticipated final variance between the budgeted amount and the surplus. Mr. Ziesmer did not provide an estimate and explained that invoices are still being received. Any surplus will be returned to the utilities. Mr. Jenkin noted that a large amount of the budget surplus is due to the Southern Right of Way (ROW) clearing amount line item of $500,000 that has not spent any funding. He asked if any clearing expenses are anticipated for this line item. Jon Sinclair, MEA, explained that clearing has occurred and approximately $400,000 of invoices are pending. He noted that there will not be any invoices for the underbudgeted amount for the switch repair line item. Mr. Jenkin commented that the significant variances in the projected annual energy rates have an impact on the economic transactions with GVEA. He emphasized the importance of striving for a tight budget that does not overcharge wheeling or otherwise limit beneficial economic transactions. There were no other comments or questions. 9113. IOC Committee Chair Laughlin requested Mr. Sinclair to present the IOC Report. Mr. Sinclair discussed that the draft Primary Frequency Response (PFR) policy is included in the member packet. He requested the IMC review the PFR and move it forward to an entity that involves Homer Electric Association (HEA), either the Bradley Lake Project Management Committee (BPMC) or the Railbelt Reliability Council (RRC). Mr. Sinclair believes the policy is important and could be attached as a reference or an appendix to one of the standards. He highlighted items within the PFR and recommended that members review the entire PFR, including definitions, to ensure the language is acceptable. The IOC voted to approve and to recommend the PFR to the IMC. Mr. Sinclair noted that the IOC also discussed Independent Power Producer (IPP) interconnection regulation requirements. This is an ongoing topic with multiple studies being conducted. There is concern regarding how IPPs will interconnect and the ramifications of those interconnections. Mr. Sinclair reported that the recent Healy static VAR compensator (SVC) issues are actively being reviewed and investigated to develop a resolution for preventing future IMC Meeting Minutes —July 26, 2024 3 faults and failures. Mr. Sinclair commented that the funding of the IMC grants is still unknown. The grants will move forward once the funding is officially awarded. Mr. Sinclair reviewed that the System Studies Subcommittee (SSS) is working on studies and interconnection requirements. He requested that the IMC direct the SSS on the scope of the 230 kV upgrades study. Currently, the focus is on Teeland to Healy. Mr. Sinclair asked if the focus should include the southern portion of the Intertie. He recognized that Homer Electric Association (HEA) is not a participant in the study. Mr. Sinclair reported that the bids for the inverter -based resources (IBR) study are due in August, and he expects the study to be completed by the end of the first quarter of 2025. Mr. Sinclair discussed that the SCADA and Telecommunications Subcommittee continues the communication improvement efforts at Douglas. Mr. Jenkin commented that his understanding is IBR generation and non-dispatchable generation have different characteristics. The issue is not with the ownership of the facility by a utility or an IPP, the concern is the generation type and its effect on the system. Mr. Sinclair agreed that ownership does not matter for the IBR study and its data modeling. He noted that the PFR policy is specific to the Balancing Authority to ensure that the spin and generation is adequate to keep the system stable. Dan Bishop, GVEA, encouraged the IMC to direct the IOC to include the line to the Kenai Peninsula as optional work in the 230 kV upgrade study, extending to Soldotna and to Bradley Lake. He believes it is beneficial to understand how losses could be reduced and how stability could be improved. Mr. Jenkin noted that HEA has participated in past studies. He asked Mr. Sinclair if any contact has been made with HEA through the SSS regarding their willingness to participate in the cost of a full Railbelt-wide study regarding the Intertie. Mr. Sinclair agreed there has been communication. He noted that HEA declined to participate and believes that the current studies in place are sufficient. Mr. Jenkin requested that HEA share the studies that indicate how much capacity increases on the line if converted to 230 kV. Mr. Sinclair agreed to request the information. A suggestion was made that utility engineers discuss and coordinate with the O&D engineers to determine if Bradley Lake should participate in the study. Mr. Bishop commented that the 230 kV upgrade study for the Kenai Peninsula includes the newest version of the PSSE database and the updated Bradley governor models. Mr. Jenkin referenced the PFR policy under transmission lines not being included in the response and asked if load shed events were examined or analyzed to see how many were contributing to the events over the last couple of years. Mr. Sinclair responded that the decision to exclude those lines was not unanimous. He explained the significant economic impacts if the lines were included. Multiple events have occurred where lines have tripped off and have caused underfrequency load shed. Mr. Jenkin suggested that the transfer limits of the Dixon Creek project are included in the IMC Meeting Minutes - July 26, 2024 4 Bradley Lake regional studies. It was agreed to be included as an action item. There were no other comments or questions. 9C. Operator Report Russ Thornton, CEA, reviewed the included Operator Report. Usage has increased 11% over the last year. This is largely due to GVEA's 18% increase in use. He noted that MEA's use is down 30%. No Alaska Intertie trips have occurred within the reporting period. The three trip events that did occur had a system frequency response of about 6.0 MW. The details are shown in the report. Chair Laughlin noted the Southern Tie Trip of May 12, 2024. He asked if that line was still out of service during the EGS Unit Trip and the Healy 2 Trip in June. Mr. Thornton agreed. There were no other comments or questions. 10. MEMBERS COMMENTS Mr. Jenkin reiterated his appreciation for the accuracy of the minutes and for the IOC's work on the standards. He recognized the importance of allocating and maintaining spin on the system and will continue the review. Mr. Carey expressed appreciation to Mr. Ziesmer for his accounting efforts and to Mark Billingsley, AEA, for his contract efforts. Mr. Million looks forward to future conversations evaluating the southern part of the Intertie for 230 kV upgrades, reviewing HEA's available studies, and determining the total cost impact. He believes it is crucial to understand the cost impact. Chair Laughlin thanked participants for the reports and for the draft PFR Policy. He suggested that action can be taken next month. He welcomed Mr. Million as the new Chair. 11. NEXT MEETING DATE — September 27, 2024 12. ADJOURNMENT There being no further business of the IMC, the meeting adjourned at 9:41 a.m. J Andrew Laughlin, Ch it { Bi Price, AEA Secretary IMC Meeting Minutes — July 26, 2024 5