Loading...
HomeMy WebLinkAbout2025-07-25 IMC Meeting MinutesAlaska Intertie Management Committee (IMC) REGULAR MEETING MINUTES Alaska Energy Authority Board Room Friday, July 25, 2025 1. CALL TO ORDER Chair Dan Bishop called the meeting of the Alaska Intertie Management Committee to order on July 25, 2025, at 9:00 a.m. 2. ROLL CALL FOR COMMITTEE MEMBERS Members present: Dan Bishop (Golden Valley Electric Association (GVEA)); Tony Zellers (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 Public present: Jennifer Bertolini (AEA); Mark Billingsley (AEA); Patrick Domitrovich (AEA); Pamela Ellis (AEA); James Mendenhall (AEA); Leeanne Smoke (AEA); Mark Ziesmer (AEA); Joel Paisner (Ascent Law Partners); Mike Miller (CEA); Nathan Minnema (GVEA); David Pease (MEA); and Jon Sinclair (MEA). 4. AGENDA APPROVAL MOTION: A motion was made by Mr. Laughlin to approve the agenda. Motion seconded by Mr. Price. MOTION: A motion was made by Vice -Chair Zellers to amend the agenda, adding Item 7B. Douglas Microwave Tower Meter. Motion seconded by Mr. Price. The motion to amend agenda passed without objection. The amended agenda, adding Item 7B. Douglas Microwave Tower Meter, was approved without objection. S. PUBLIC COMMENTS There were no public comments. 6. APPROVAL OF PRIOR MINUTES — June 20, 2025 IMC Meeting Minutes — July 25, 2025 1 MOTION: A motion was made by Vice -Chair Zellers to approve• the Minutes of June 20, 2025. Motion seconded by Mr. Laughlin. The Minutes of June 20, 2025 were approved without objection. 7. NEW BUSINESS 7A. Annual Meeting and Election of Officers Chair Bishop requested Joel Paisner, Ascent Law Partners, to conduct the election process. Mr. Paisner explained that historically, the Vice -Chair is the next in line for Chair; however, the Committee, as a whole, needs to elect the next Chair and Vice -Chair. He noted that the current Vice -Chair is Vice -Chair Zellers. Mr. Paisner indicated the process requires a nomination for the office of Chair, and the nomination does not need to be seconded. Mr. Laughlin nominated Vice -Chair Zellers as IMC Chair. There were no other nominations for Chair. A voice vote was taken, and Vice -Chair Zellers was approved as IMC Chair without objection. Mr. Paisner indicated that nominations for IMC Vice -Chair for 2026 are open. Newley elected Chair Zellers nominated Mr. Laughlin as IMC Vice -Chair. There were no other nominations for Vice -Chair. A voice vote was taken, and Mr. Laughlin was approved as IMC Vice -Chair without objection. Mr. Paisner congratulated the new officers. He noted that Chair Zellers can resume the meeting. 7B. Douglas Microwave Tower Meter Mr. Price explained that historically the Douglas Microwave Tower Electric Meter has been paid for by the State's Public Safety Office, who requested that payment be transferred out. Mr. Price noted that the details of the use of the tower are still being formulated. The three available options are; 1) one utility could pay for the Douglas Microwave Tower, 2) the payment could be passed through the IMC budget as an O&M cost, and 3) the payment could be passed through as an administrative cost. Mr. Price indicated that AEA does not have a preference as to which option is utilized. Mr. Bishop asked about the predominant use of the microwave traffic, and if it is for protection IMC Meeting Minutes — July 25, 2025 2 circuits, communication, or diagnostics. Mr. Price requested that Jon Sinclair, MEA, provide additional information. There was no objection. Mr. Sinclair discussed that the microwave tower is used for protection circuits and for the public safety microwave system. The bandwidth use is reasonable, and not a large amount of data is going back and forth. It is used for SCADA data, and protection and controls. Vice -Chair Laughlin asked Mr. Sinclair if the Department of Public Safety (DPS) or other entities will still utilize the microwave system. Mr. Sinclair responded that he does not know if DPS will continue to use the microwave system. He noted that they have used it in the past. Mr. Sinclair believes there are multiple State agencies that use the microwave system, and he highly doubts that DPS will stop using the microwave system. Chair Zellers asked Mr. Sinclair for an estimate of the meter reading on a monthly basis. Mr. Sinclair noted that based on last year's usage, the meter runs between 600 and 900 kilowatt hours, with an average monthly bill of $150. Mr. Price expressed his understanding that the State is going to change the way the Douglas Microwave Tower is utilized. Those who currently use the tower will continue to use the tower. He noted that the Railroad and Public Safety uses the tower. One of the changes and corrections is the addition of proper site control, proper leases, and proper access for new as -built requests. Mr. Bishop asked if the Douglas Microwave Tower was originally built as part of the Alaska Intertie Project. Chair Zellers responded that he believes it was originally built as part of the Alaska Intertie Project. He remembers that in the late 2000's, perhaps 2009, the IMC was going to move to fiber when ACS put fiber along the highway. The decision was made against moving to fiber, as that system would not be supported for the State agencies. Mr. Price explained his understanding is that the Douglas Microwave Tower is the primary SCADA communication between Fairbanks and Douglas. Chair Zellers noted the limited bandwidth. He expressed his concern in determining whether to utilize the Douglas Microwave Tower or the fiber for the upcoming synchrophasor project. Mr. Sinclair agreed with Chair Zellers regarding the limited bandwidth. He indicated that a fiber tie would be much better for a com-link to bring real-time data back and forth. Mr. Sinclair said it would be great to either utilize fiber or to have more Douglas tower bandwidth. However, he understands the limitations due to other users on the microwave system. Mr. Sinclair discussed the current limitations, and wants the Committee to keep the limitations in mind for future decisions. He commented that utilizing fiber in the future would be ideal. Mr. Price noted for the record that AEA would love to have fiber. He stated that he is not trying to prioritize the Douglas Microwave Tower over fiber, he is acknowledging the current situation, the status quo. IMC Meeting Minutes — July 25, 2025 3 Vice -Chair Laughlin commented that the question to be addressed currently, is how to allocate the cost of the Douglas Microwave Tower meter. He recommended the payment be passed through the IMC budget as an O&M cost. Mr. Bishop asked Vice -Chair Laughlin if he is suggesting that the cost is allocated as an operating expense as opposed to an administrative expense. Vice -Chair Laughlin agreed. Chair Zellers agreed with Vice -Chair Laughlin's suggestion as an operating expense. Additionally, Chair Zellers assigned the Intertie Operating Committee (IOC) to explore future options. Mr. Price believes there is a standing assignment to the SCADA Committee regarding forward - looking plans. Mr. Laughlin asked for clarification regarding the standing request for a future plan of the options of fiber or building out the microwave network that Mr. Price referenced. Mr. Price discussed that the subject continues to be discussed. His understanding is that all the options are expensive, and not much can be achieved until additional funds are made available or it becomes a high priority. Mr. Price expressed support for the subject to be revitalized at the subcommittee level. Mr. Bishop discussed that GVEA's information technology (IT) department is reviewing the rerouting traffic off of the AT&T line so that GVEA does not have to pay the $85,000 fee. He noted there was also a report on the cost of a CEA microwave upgrade. He is not clear on how these options relate to each other. He expressed support for a White Paper to be created to explain these options. Mr. Price agreed with the sentiment. He noted that the subject continues to be discussed between the subcommittees, however, there has been no clear resolution on the status quo and the plan to move forward. Mr. Paisner suggested that Chair Zellers provide clear direction to the subcommittee to evaluate all the coms, review the current contracts, and provide data on who uses what and when it is used. Chair Zellers agreed, and assigned the SCADA Committee to evaluate the current communications plan, and delineate options for a future communications plan. There were no other comments or questions. MOTION: A motion was made by Vice -Chair Laughlin to move the meter costs under the Operation and Maintenance of the Intertie. Motion seconded by Mr. Bishop. The motion passed without objection. IMC Meeting Minutes — July 25, 2025 4 Mr. Price noted that he will send the email regarding the motion, and requested clarification that the will of the Committee is to direct the cost to MEA, and MEA will then pass it into the O&M cost. Chair Zeller agreed. 8. OLD BUSINESS 8A. 616 Structure Update Mr. Bishop provided update on the explained the 616 Structure. He said switching orders have been arranged for August 9, 2025. Mr. Bishop requested Nathan Minnema, GVEA, to provide additional information on the item and its developments. Mr. Minnema noted that the most recent update from the contractor EPC is that work continues internally on those switching orders, as well as coordination with the contracting and MEA. The contractor is currently reviewing the mobilization to site on August 11, 2025. The Intertie outage is anticipated from August 131h through the August 19th. The firm dates will be shared with the IMC. The steel has arrived, and there is no other hindrance to proceeding. Mr. Price asked if there is a projected date for when the lift is actually going to occur. Mr. Minnema noted that he does not have the EPC construction schedule yet. He will attempt to obtain the schedule and share it with Mr. Price. Mr. Price requested that GVEA coordinate to obtain auspicious photographs during the process. Mr. Price indicated that GVEA could use their own photographer, or if GVEA wanted, AEA could send their photographer to the site on a date specific when the lifts occur. There were no other comments or questions. 8B. Snow Load Resiliency and Synchrophasor Grants Update Chair Zellers requested Mr. Price provide the update regarding the snow load resiliency and synchrophasor grants. Mr. Price reported that the grants are finally out of AEA's purview and in the purview of GVEA. Mr. Bishop indicated that draft grant agreements have been received for three grants: snow load resiliency, synchrophasor, plus a grant from GVEA. He noted that review will continue, and potential edits will go back to AEA. Afterwards, Travis Million, Chief Executive Officer GVEA, will be asked to sign the grants to submit. There were no other comments or questions. 9. COMMITTEE REPORTS 9A. Budget to Actuals Mark Ziesmer, AEA, presented the Budget to Actuals report for the period of July 1, 2024 through June 30, 2025. Mr. Ziesmer noted that the report is currently in draft status, as AEA is IMC Meeting Minutes — July 25, 2025 5 still processing and finalizing year-end expenses. Mr. Ziesmer stated that actual revenues were less than budgeted. The variance was primarily due to lower -than -expected energy usage. Actual operating expenses were well below the allocated budget. The operating expenses budget was $3.85 million, and the actual expenditure totaled $2.6 million. Administrative costs were budgeted at $250,000, and reached $331,000. This overage is primarily due to higher than anticipated payroll and indirect expenses. Mr. Ziesmer noted that overall, there were several expense categories that ended the fiscal year under budget, however, there were a few specific line items that materially exceeded projected costs. These include Federal Energy Regulatory Commission (FERC) 57000, Maintenance of Station Equipment Projects; Cantwell Install Breakers, Capacitor Spares, HLSB PT Replacements, and Special Patrols. Additionally, higher expenses were seen in FERC 57100, Maintenance of Overhead Lines, Northern Maintenance; FERC 57102, Northern Right of Way Clearing; FERC 58401, Insurance Premiums; and the previously mentioned Administrative Support Services. Mr. Ziesmer indicated that the report shows a surplus of $1.1 million; however, he expects that total to decrease slightly, as AEA finalizes the fiscal year and adds any remaining expenses for 2025. Mr. Ziesmer continued the review on page four, and noted the actual energy usage for the period was below forecast, totaling 151,631 MWH, compared to the budgeted usage of 176,780 MWH. The shortfall in usage resulted in lower usage revenue, which amounted to approximately $2.56 million, compared to the projected revenue of $2.98 million. The budgeted billed rate was $16.86 per MWH, compared to the actual energy rate of $14.34 per MWH. There were no comments or questions. 913. IOC Report Mike Miller, CEA and Chair of the IOC, presented the IOC Report included in the Committee packet. Mr. Miller indicated that the position of IOC Chair rotated prior to the previous meeting, and he is the new IOC Chair. Mr. Miller noted the items discussed earlier in today's meeting included the repairs to structure 616, the grants for the snow unloading and synchrophasor projects, and communications at Douglas. Mr. Miller reported that the IOC spent time recently discussing the possibility of conducting a meeting with the State representatives in charge of communications to determine ways to be more efficient with the communication system and with the infrastructure. Mr. Miller noted that the assignment for the SCADA / Telecommunications Subcommittee delegated at today's meeting corresponds with current IOC conversations. Mr. Miller continued the report, noting that the IOC discussed the possibility of interest in establishing a backup GPS time system for the utilities, as there may be value in redundancy in the area. Mr. Bishop asked if in the discussion of the backup timing system, has there ever been a situation in which the backup timing was needed. Mr. Miller indicated that he is not aware of any situation. The conversation was more general, in which each utility was asked to solicit their IMC Meeting Minutes — July 25, 2025 6 SCADA and telecom staff to provide feedback on whether this subject should be investigated. Mr. Price noted that the Douglas communications project's forecasted total cost is approximately $1 million. The original project budget was $650,000. In the FY26 budget, there was $100,000 added to cover the anticipated shortfall at that time. There is an additional shortfall of approximately $200,000. Mr. Price commented that AEA will provide their contingency funds of approximately $50,000 or $60,000 for the project. Once those funds are exhausted, the remaining cost of the project falls to the IMC. He noted that when the decision was made that the remaining cost of the project falls to the IMC, the overage at that time was anticipated at approximately $100,000. The anticipated overage, which falls to the IMC budget, is expected now to be approximately $300,000. Mr. Price understands that this amount would require a budget amendment, including a 30-day notification process. His understanding is that scheduled spend amount will take until the end of the calendar year, and no decision needs to be made today. Chair Zellers asked if Mr. Price anticipates the budget amendment to be presented at the next IMC meeting or at the November IMC meeting. Mr. Price suggested that the budget amendment occur no later than the September IMC meeting. He noted that the process could begin at today's meeting, if the members decide that course of action. Chair Zellers recommended that the budget amendment is placed on the agenda for the September meeting. He requested that Mr. Price provide members with supporting materials prior to that meeting. Mr. Price suggested that the members also look ahead at the maintenance projects and review any other items that may need to be changed in the budget. Chair Izzo agreed that members should review the current approved budget, and any potential changes should be made early, especially as previously discussed regarding the surplus amount. Mr. Miller asked the IMC for guidance relating to how the IOC should consider any future requirements from the Railbelt Transmission Organization (RTO) or the Railbelt Reliability Council (RRC) and whether the IOC should engage in those conversations, rather than each utility working independently on its specific requirements. Mr. Miller requested that the IMC consider this issue and provide guidance. Chair Zellers asked Mr. Miller if the IOC is getting questions or requests from RTO or RRC now. Mr. Price indicated that the IOC has not received any questions or requests from RTO or RRC. The item is for preparation purposes, and was part of an internal IOC representative conversation regarding any actions or activities that the IOC would consider in the future. Vice -Chair Laughlin suggested to include this topic for discussion on the agenda at the September IMC meeting. He believes the issue is multifaceted and thorough review is important. IMC Meeting Minutes — July 25, 2025 7 Chair Zellers agreed. He noted that topic will be included as an agenda item at the September meeting. This will also give the Committee time to contemplate the best path forward. Mr. Price commented that he received a phone call from John Bell, who was asking specifically about this same subject. Mr. Price noted that the RRC is trying to comprehend how the model plans will be navigated. Mr. Price told Mr. Bell to submit his request to the IMC, and then the IMC would delegate. Chair Zellers discussed that a key was requested at one time for the Power Simulation and Engineering (PSSE) model, and the request was denied. Mr. Bishop expressed his understanding of the discussions regarding model sharing yesterday at an IOC System Studies Subcommittee (SSS) meeting. In the process of developing a data sharing agreement among the IMC utilities for the PSSE database, it would make sense to include the RRC in the scope of that agreement. GVEA's legal staff is currently working on that data sharing agreement. Chair Zellers believes the major concern regarding the past denial of the PSSE key is the confidentiality issue, and pointedly, the lack of confidentiality of the RRC. There is considerable confidential data within the model. Mr. Price indicated there were two requests by the RRC; 1) to join the SSS, and 2) to share the software key, mainly to save RRC cost. Both requests were denied. Mr. Price believes that the IMC denied the request for the software key because an additional key would open the contract and considerably increase the contractual costs. Mr. Price noted that this is the first time that the RRC has requested the model. Mr. Bishop discussed his understanding is that the RRC would find the database useful for integrated resource planning purposes, and that was the purpose of their request for the model. Mr. Bishop noted the additional set of synchrophasor data that potentially will be shared with the utilities. That data is used to analyze disturbances. Mr. Bishop indicated that GVEA's inclination is to have the synchrophasor data under a separate data sharing agreement that includes only the utilities and not the RRC or RTO. Chair Zellers commented that issue will require further consideration. He does not believe it is RRC or RTO's job to review disturbances. Their job regards compliance with standards, rather than analyzing system data. There were no other comments or questions. 9C. Operator Report Mr. Miller presented the Operator Report. The usage trend on the Intertie continues at about half as much MWh as the previous year. There were no unscheduled Intertie trips to report during June. One event occurred, which was a generator trip in Fairbanks of 17 MW. The response was typical. No extraordinary occurrences. There were no comments or questions. IMC Meeting Minutes — July 25, 2025 8 10. MEMBERS COMMENTS Mr. Price expressed appreciation to everyone for their hard work, particularly to GVEA for their patience during the grant document effort. He looks forward to the projects moving forward. Mr. Bishop thanked the Subcommittees for all of their work. He is happy that the grants are moving forward. Mr. Bishop noted that the snow load resiliency grant will address a problem that he first worked on about 30 years ago. He looks forward to the progress of completing this transformative change for the Alaska Intertie. Mr. Bishop commented that the synchrophasor project, as well, has the potential to be a significant benefit to the Railbelt. He appreciates the efforts of AEA, Keith Unidentified, and the Department of Energy on that project, which will provide insight and understanding into the reliability of the system. Vice -Chair Laughlin echoed the previous comments of appreciation. He thanked Mr. Bishop for his service as Chair, and extended good luck to Chair Zellers, Chair Zellers echoed the previous comments of appreciation. He thanked the AEA staff for their efforts. 11. NEXT MEETING DATE — September 19, 2025 at 9:00 a.m. Chair Zellers indicated that the next meeting date is September 25, 2025 at 9:00 a.m. 12. ADJOURNMENT There being no further business of the IMC, the meeting adjourned at 9:47 a.m. ,- �6'� �//� Tony ZielloWs, Chair Bill Price, AEA Secretary IMC Meeting Minutes — July 25, 2025 9