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Home My WebLink AboutRes2010-093 Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -093 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, TO ADOPT THE RELIABILITY STANDARDS FOR INTERCONNECTION FOR RAILBELT TRANSMISSION SYSTEM OPERATIONS. WHEREAS, in 1985 several Railbelt Utilities entered into the original Alaska Intertie Agreement as well as a separate agreement providing for Reserve Capacity and Operating Reserve Responsibility Agreement (1985 Intertie Agreements) in order to improve the reliability of the interconnected electrical systems along the Railbelt and engage in transactions for electrical power and energy deliveries; and WHEREAS, although not a signor to the original reliability standards, the City of Seward has successfully operated its system in accordance with the terms and conditions of the 1985 Intertie Agreements and the separate agreement providing for Reserve Capacity and Operating Reserve Responsibility; and WHEREAS, it is in the best interests of City of Seward and all other Railbelt electric utilities to have a coordinated and standardized approach to the electric utility transmission ilava system operations of the interconnected utilities along the Railbelt; and WHEREAS, the Reliability Rules sub - Committee (RRC) was formed by the Railbelt Utility Managers to develop reliability standards for the safe and efficient transmission system operations of Railbelt electric utilities; and WHEREAS, the RRC has completed its development of such reliability standards and has published its work for consideration and adoption by each of the Railbelt Utilities; and WHEREAS, the reliability standards developed by the RRC address such things as interconnection requirements, load balancing, power scheduling, and the setting and maintaining of reserve requirements; and WHEREAS, the reliability standards developed by the RRC also outline the structure for an enforcement mechanism to promote compliance with the Railbelt reliability standards; and WHEREAS, it is in the best interests of the City of Seward and its residents to adopt the reliability standards developed by the RRC for use on its utility system; and WHEREAS, it is in the best interests of the City of Seward and its residents for the City of Seward to require all users over ten megawatts (10 MW) interconnected with Seward's electric utility system to hereinafter be required to comply with the reliability standards CITY OF SEWARD, ALASKA RESOLUTION 2010 -093 sell developed by the RRC and adopted by this city council for use by the City of Seward electric utility system; and WHEREAS, the City of Seward has a significant interest in the implementation and enforcement of reliability standards and it is in the best interest of the residents of the City of Seward that there be a coordinated approach to transmission system operations by the Railbelt electric utilities. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City of Seward adopts the reliability standards, in substantially the form presented at this meeting, developed by the RRC for use with the electric utility transmission system operations on the Railbelt and for any entities over ten megawatts interconnected with the City of Seward's electric utility system. Section 2. It is expected that the utility manager inform the City Council if any material changes are made to the reliability standards developed by the RRC. t Section 3. This resolution shall be effective 10 days after the adoption by the city council. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 27 day of September 2010. / THE CI �.. WARD, ALASKA , „, / 77 Willard E. Dunham, Mayor AYES: Valdatta, Bardarson, Smith, Keil, Shafer, Amberg, Dunham NOES: None ABSENT: None ABSTAIN: None ''� 0,sse11lli,,. •O .. •J OF SEN/ # . ATTEST . •....r.. ...... I • . c an Lewis J ! • • (SEAL ) • a City Clerk , J aril (City Seal) •• • ♦ . 44,... 1 , � ` �: •• ' J e . � .try. .;ryE � ��,. � **'• O t.vr e� Council Agenda Statement Meeting Date: September 27, 2010 � o c sFtt, Through: Phillip Oates, City Manager u . - From: John Foutz, Electric Utility Manager lc sv-P Agenda Item: Adopting reliability standards for the railbelt Electric Intertie System BACKGROUND & JUSTIFICATION: Reliability standards were originated in 1985 with cooperation from several of the railbelt electric utilities and state agencies. Although the City of Seward did not initially sign nor did the City of Seward adopt, by resolution, these standards the electric utility has performed under these guidelines. The state agency signatory (Alaska Energy Authority — AEA) to these standards is ending the contract that is currently in place. In an attempt to manage uniformly the safety, security and preservation of the intertie, the Railbelt Managers and CEO's are presenting the revised reliability standards to their governing boards. The Managers of the Railbelt Utilities have formed and requested an Ad -Hoc Reliability Group (Reliability Rules sub - Committee — RRC) to develop the standards to better emulate national utility practices and to provide direction to the Railbelt Utilities on how to cooperatively operate their systems for the betterment of the interconnected electrical system. These standards have been broken into three sections. The first set of standards defines how entities must provide for a reliable electric system. These standards are similar to what North american Electric Reliability Corporation (NERC) requires outside of Alaska. The second set of standards is the Interconnect Standards for Generation, Transmission, and End Users. These standards are applied to entities /equipment greater than 10 MW. This limit is based on our current system bias where loss of a 10 MW unit will cause the system frequency to drop 0.1 Hz. The last set of standards is the Reserves policy. These standards set requirements for the resource adequacy, operating reserves, spinning reserves, and regulating reserves. The Group has drafted these standards giving careful consideration to the many technical and operational issues involved with interconnecting entities to the Alaska Railbelt Electrical System (also referred to as the "Railbelt Interconnection" or "The System ") and with five overarching goals: • First, these standards set the minimum requirements for interconnection to The System; serving utilities may have additional or more stringent interconnection standards. • Second, to the extent practical, these interconnection standards should be performance based rather than requirements based. • Third, to the extent practical, interconnecting entities should not be allowed to degrade the performance or reliability of The System. Such degradation in performance shall be determined by modeling the Railbelt Electrical System using the boundary dispatch cases against all N -1 and probable N -2 contingencies. • Fourth, interconnecting entities should not be required to build or improve System facilities beyond those necessary to meet the third overarching goal (above). • Fifth, the interconnecting entity, as a condition of interconnection, shall abide by all other applicable Railbelt standards as they may be modified or implemented from time to time. INTENT: The City of Seward adopt reliability standards for the railbelt Electric Intertie System. FISCAL NOTE: This resolution of support has no fiscal impact. Approved by Finance Department: ,g64 ATTORNEY REVIEW: Yes No X RECOMMENDATION: The City Council pass resolution 2010- oci 3 , adopting reliability standards for the railbelt Electric Intertie System.