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HomeMy WebLinkAbout2024.09.27 IMC Executed MinutesAlaska Intertie Management Committee (IMC) REGULAR MEETING MINUTES Alaska Energy Authority Board Room Friday, September 27, 2024 1. CALL TO ORDER Chair Dan Bishop called the meeting of the Alaska Intertie Management Committee to order on September 27, 2024, at 9:00 a.m. 2. ROLL CALL FOR COMMITTEE MEMBERS Members present: Dan Bishop (Golden Valley Electric Association (GVEA)); Jon Sinclair (Matanuska Electric Association (MEA)); Andrew Laughlin (Chugach Electric Association (CEA)); and Bill Price (Alaska Energy Authority (AEA)). A quorum was established. 3. PUBLIC ROLL CALL Jennifer Bertolini (AEA); Mark Billingsley (AEA); Bryan Carey (AEA); Pamela Ellis (AEA); Mark Ziesmer (AEA); Joel Paisner (Ascent Law Partners); Mike Miller (CEA); Russell Thornton (CEA); Nathan Minnema (GVEA); Keith Palchikoff (GVEA); Lance McKimson (MEA); and Julian Jensen (Public). 4. AGENDA APPROVAL MOTION: A motion was made by Mr. Price to approve the agenda with the addition of Item 7A. Upcoming Grant Opportunities. Motion seconded by Mr. Laughlin. There was no objection to adding Item 7A. Upcoming Grant Opportunities to the agenda. The amended agenda, including Item 7A. Upcoming Grant Opportunities was approved without objection. 5. PUBLIC COMMENTS - None 6. APPROVAL OF PRIOR MINUTES — July 26, 2024 MOTION: A motion was made by Mr. Price to approve the Meeting Minutes of July 26, 2024, as presented. Motion seconded by Mr. Laughlin. The Minutes of July 26, 2024 were approved without objection. 7. NEW BUSINESS 7A. Upcoming Grant Opportunities Mr. Laughlin discussed that at the July 26, 2024 meeting, the Intertie Operating Committee (IOC) was assigned to research grant opportunities and to report back to the IMC with IMC Meeting Minutes — September 27, 2024 recommendations for future projects and applications. Additionally, at the same meeting, the IOC was assigned to review two projects suggested by Ed Jenkin and to report feedback to the IMC. Mr. Laughlin noted the two projects were the Lake Lorraine transmission line to the Reddington Substation, and a 230 kV upgrade to the Douglas to Healy and Douglas to Teeland lines. Mr. Laughlin commented that the report on the grant opportunities is not yet available. Mr. Sinclair apologized and noted that he did not realize the IOC was given the assignment. He discussed that both projects have been reviewed by the IOC and grant preparations have begun. Mr. Sinclair does not know the timing of when AEA will release the grant opportunities. He will provide additional information to the committee regarding MEA's progress. Mr. Sinclair noted that MEA's team has completed cost estimates for upgrading the Douglas Substation and for the Lake Lorraine transmission line. Mr. Laughlin asked if the difference is known between the scope of the work cost estimates and the grant opportunity amounts. Mr. Sinclair discussed that the northern intertie upgrades will cost in the hundreds of millions of dollars. The Lake Lorraine transmission line cost is estimated at $15 million, with an additional $10 million for the substation. Mr. Sinclair noted that $25 million is within the general range of available grant opportunities. Mr. Laughlin asked if the IMC should provide the IOC direction as to the scope and size of the grants they are reviewing. An unidentified speaker agreed, and requested that the IOC assemble the information about the grant options. Mr. Sinclair noted that the IOC has a portion of the grant information ready. He asked if the IMC would like to review that information or if the IMC would like to prioritize the grant opportunities that the IMC focuses on. An unidentified speaker suggested that the IMC request that the IOC review the grant options and make a recommendation. Mr. Sinclair agreed. Mr. Price commented that the exact text and the dates of the grant opportunity is uncertain. However, he highlighted that the amount will be less than $20 million, and that the grant will be competitive, possibly more competitive than the previous round. Chair Bishop refined the IOC's previous assignment to include the focus on low -dollar, high - value projects for recommendation to the IMC. There were no other comments or questions. 8. OLD BUSINES - None 9. COMMITTEE REPORTS 9A. Budget Update Chair Bishop requested Mark Ziesmer, AEA, to provide the Budget Update. Mr. Ziesmer informed that no significant changes occurred during July and August. His efforts have been focused on IMC Meeting Minutes — September 27, 2024 2 assisting AEA's finance team with their FY24 financial statement and audit that is expected to be completed by the end of October. Mr. Ziesmer anticipates presenting the Budget versus Actuals Report and the FY24 refund calculation result at the next meeting. There were no comments or questions. 9B. IOC Committee Chair Bishop requested Mr. Sinclair to present the IOC Report. Mr. Sinclair discussed the summary that is included in the packet. The structural integrity of the Douglas Substation control enclosure continues to weaken. The IOC worked with EPS, and the two options for improvement are an insulation project and a pile driving project. The cost of the pile driving project option is significantly greater than the cost of the insulation project option. The IOC recommends that the IMC moves forward and selects an option. Mr. Sinclair noted that neither of the enclosure improvement options are included in the budget. He asked the IMC if there is a separate procedure to acquire the needed funds to strengthen the integrity of the enclosure. Mr. Laughlin suggested that the IOC prepare a project recommendation and budget, and present the proposal to the IMC with a recommendation for amending the budget. Mr. Sinclair agreed. Mr. Laughlin emphasized his support for the long-term solution of pile driving. There were no other questions of comments. i. Primary Frequency Response Policy Draft Mr. Sinclair noted that the draft Primary Frequency Response (PFR) policy is included in the member packet. The IOC reiterates its recommendation that the IMC approve the PFR policy and then move it to the committee or council that includes Homer Electric Association. MOTION: A motion was made by Mr. Laughlin to approve the Primary Frequency Response Policy, as written. Motion seconded by Mr. Sinclair. The Primary Frequency Response Policy was approved without objection. Mr. Price asked if there needs to be a motion to forward the PFR to the Bradley Lake Project Management Committee (BPMC). Mr. Laughlin suggested that the PFR is forwarded to the Railbelt Reliability Council (RRC) for their technical review. Mr. Sinclair recommended that the PFR is forwarded under the Alaska section outlining the procedure to conduct a study and then to create a policy. The PFR policy fulfills this standard. There were no other questions of comments. MOTION: A motion was made by Mr. Price to advance the Primary Frequency Response Policy to the Railbelt Reliability Council. Motion seconded by Mr. Sinclair. The motion was approved without objection. IMC Meeting Minutes — September 27, 2024 3 Mr. Sinclair discussed the ongoing Healy static VAR compensator (SVC) reliability issues. He believes the funding is available for the manufacturer General Electric (GE) to move forward with the investigation and to hopefully provide a solution to the issues. Mr. Sinclair asked Mr. Price to provide his understanding of the timeline. Mr. Price explained that the utilities collaborated on the development of the scope, and GE is currently finalizing and revising that scope. If GE submits the proposal at less than $50,000, the SVC engineering budget line item will be utilized for the GE change order. If the submitted proposal from GE is significantly greater than $50,000, additional discussion will occur. There were no questions. Mr. Sinclair commented that he has no updates on the pending grants. He noted that the two underfrequency load shed events that occurred will be discussed in the Operator Report. The IOC reviewed studies that could be conducted to prevent similar events in the future. Another option is spinning for the ties. Mr. Sinclair highlighted that the System Studies Subcommittee (SSS) confirmed that the 230 kV upgrade study extends from Bradley to Healy. Results of that study are anticipated later this year. Mr. Sinclair reported that the six proposals received for the inverter -based resources (IBR) study are under evaluation. An updated timeline will be presented after the selection process is complete. Mr. Sinc mented that the SCADA and Telecommunications Subcommittee continues the right-of-way wor efforts for the communication upgrades at Douglas. Additionally, the- Engineering -Relay and Reliability Subcommittee was assigned to review the existing SVC maintenance contract with GE, which expires in 2026. Chair Bishop commented on the ongoing tests and implementations between Teeland and Douglas. There were no other comments or questions. 9C. Operator Report Russell Thornton, CEA, reviewed the included Operator Report. Usage has decreased approximately 50% from this time last year. He noted that GVEA's usage for the year is also down by about half. Mr. Thornton discussed the two Intertie trips that occurred within the reporting period. The most recent'trip on August 28, 2024 performed as expected. However, the trip event on August 12, 2024 was isolated tthe south and an oscillation began within the southern part of the syste' tripping the first -of two generators at SPP and at 2A. Second stage load shed occurred, after which t-s c generator tripped offline. The oscillation continued until the SPP operator took their units out of droop. Mr. Thornton noted that the CEA system load was restored in approximately 22 minutes, and the remaining recovery occurred shortly after. CEA subsequently studied the event. Mr. Thornton discussed their findings and the reason the units tripped at SPP and 2A, and the reason the system oscillated. An additional study with MEA has been commissioned and is underway. The scope is prepared, and a kick-off meeting will occur within the next week. One of the goals of the study is to include the manufacturers in the study scope and to install the settings directly into the governors. Mr. Sinclair asked if the timeline for the study and for the corrective action is two months, six months, or one year. Mr. Thornton noted that he does not have an estimated timeline. He IMC Meeting Minutes — September 27, 2024 / 4 emphasized that the study and corrective actions are high priorities. The study builds on the work of previous studies, which should assist in achieving the goal. Mr. Thornton discussed the IOC quarterly reliability report details included in the packet. Mr. Sinclair noted that the southern tie line will be out while the rebuilding occurs. He expressed concerns that load will be pushed for longer durations than previously experienced, resulting in an unreliable state. Mr. Sinclair referenced that this issue was discussed at the IOC, and the members are to consult with their utilities to determine if any steps should be taken to address the issue, effectively increasing the spin to accommodate the loss of the southern tie. Mr. Laughlin believes the IOC is taking the right course of action in reviewing the issue to determine economical solutions that will prevent future events. He noted the increased rate at which underfrequency load shed events have occurred within the last couple of years. Mr. Price asked if all three utilities are adhering to the PFR policy to the best of their ability. Mr. Sinclair discussed his understanding that the PFR policy was written because the current delineated process is deficient of spin. When the PFR policy is followed, the largest generator will not be deficient of spin. The larger ties will remain deficient of spin. The PFR remedies the generation, but does not remedy the ties. Mr. Price commented that the RRC may or may not impose tie line spin. Mr. Price suggested sending the PFR to both the RRC and to the BPMC, such that the BPMC could review and formulate an interim step in the process. Mr. Thornton agreed that underfrequency load shed events will continue to occur during the upgrading process over the next five years. He believes there is reduced inertia on the system that is getting faster. Mr. Thornton supports changing past approaches. Mr. Laughlin does not object to Mr. Price's suggestion of sending the PFR to both the RRC and to the BPMC. Mr. Price asked for clarification that today's affirmative motion regarding the PFR will result in the northern utilities' adherence to the PFR. Mr. Sinclair commented that he assumes adherence to the PFR will occur. He noted that HEA is not committed, but HEA has historically provided 10 MW from their battery. Mr. Laughlin agreed that his understanding is that the northern utilities will adhere to the PFR. Chair Bishop commented that he will confirm that understanding with the dispatch group. Mr. Thornton discussed the Soldotna event, during which work on the switch capacitor was conducted. Upon completion of the work, the SVC came online at -20 megavar causing a voltage decline at Soldotna, which radiated throughout the system. Coincidently, this affected the output of Bradley Lake's Unit One to nearly zero for about seven seconds, after which it IMC Meeting Minutes -September 27, 2024 5 returned to its setpoint of approximately 61 MW. The connection between the two events is odd, and is not completely understood. Chair Bishop asked if the megavar reactive output was increased to try to control the voltage. Mr. Thornton noted there was not a substantial increase. Additional study of the event continues. There were no other questions of comments. 10. MEMBERS COMMENTS Mr. Price expressed appreciation for the diligent work. Mr. Laughlin expressed appreciation for the good discussion and great reports presented today. Mr. Sinclair echoed Mr. Laughlin's comments of appreciation for the effort from the subcommittees. He looks forward to the positive changes from implementing the PFR. Chair Bishop thanked the participants and the subcommittees for devoting their efforts to the improvement of the operation and maintenance of the Alaska Intertie. 11. NEXT MEETING DATE — December 6, 2024 12. ADJOURNMENT There being no further business of the IMC, the meeting adjourned at 9:50 a.m. Dan Bishop, Chair �4Price, AEA Secretary IMC Meeting Minutes — September 27, 2024 6