WATER UPDATE

Water Quality

• Water quality during May met or exceeded State and Federal drinking water standards.

• The Valley Pumping Plant blend ratio for the month of May was 47% MWD to 53% BOU. 

Financial and Operations Update

• Potable water sales for May were 724,752 units. This was 1% higher than the budgeted sales. Revenue for May was $ 1,162,640.

• Reclaimed water sales for May were 14,403 billing units. Revenue for May was $ 17,977, not including Power Plant sales.

• Fiscal Year 2002-03 Year-To-Date preliminary Water Fund Financial Results as of May 31, 2003.

• The Water Cost Adjustment Charge (WCAC) account had a balance of $ 1,308,000 as of May 31, 2003.

Environmental Protection Agency (EPA)

• BWP received a grant from the EPA to perform a Vulnerability Assessment. The Report has been filed with the EPA and the Emergency Operations Plan is being updated.  

• The design work for the modifications to the Liquid Phase Granulated Activated Carbon  (LPGAC) units has been completed. The EPA provided approval to fabricate the necessary materials. Approval for construction is pending EPA�s approval of the final design.

Capital Projects

• Replacement of interior joints at Reservoir No. 2 continues. A contract amendment was approved on April 22 and the completion is scheduled in June 2003. 

• The Water Division continues to support the Magnolia Power Project by abandoning and relocating the water facilities on BWP�s proposed construction site. Work to relocate this 20-inch reclaimed line began this month. 

•  Work began on the 8-inch reclaimed main in Empire Ave. from Robert Gross Park to the airport.  This is estimated to be complete at the end of June 2003.   

• The painting contractor completed the interior recoating of the Brace and Haven tanks. Both tanks will be back in service the first week of June. 

• Legislative Update/Other Reports

• The Metropolitan Water District (MWD) sponsored a two and one-half day educational trip of the Northern California State Water Project/Bay-Delta on June 13, 14, and 15, 2003. The trip allowed participants to view, first-hand, MWD's statewide investments in an effort to ensure reliable supplies of water for Southern California.  

• Refer to the attached legislative reports.

ELECTRIC UPDATE

Electric Reliability

• There were no customer outages in May 2003. During the first eleven months of Fiscal Year 2002-03, there were 22 outages that affected 8,796 customers.   This is equal to a systemwide average of 0.1626 outages per year compared with an industry average of 1.2 outages per year. The average service availability is 99.9969%, exceeding the City goal of 99.99%. The average outage length was 91 minutes, compared with an industry average of 80 minutes.

The following table shows the systemwide reliability statistics for Fiscal Year 2001-02 compared to the first eleven months of Fiscal Year 2002-03.

Financial and Operations Update

• Fiscal Year 2002-03 year-to-date preliminary Power Financial Results as of May 31, 2003.

^(a) Includes in-lieu

^(b) Transmission and Telecom sales

• MWh sales of 87,832 for May were below the budgeted amount of 94,297.  Year-to-date MWh sales remain below budget due to conservation efforts and a cooler than normal summer.

• Wholesale gross margins were above budget for the month of May. Year-to-date wholesale gross margins continue to be higher due to BWP�s ability to utilize its assets to increase sales in the wholesale market.

Local Generation Operations Update

Unit Status

• Magnolia 5 is available for service. 

• Olive 1 is unavailable for service until the NOx retrofit is complete by June 2, 2003. 

• Olive 2 is unavailable for service until the NOx retrofit is complete by June 28, 2003. 

• Olive 3 is available for service. 

• Olive 4 is available for service. 

• Lake One is available for service. 

• Landfill microturbines are not available for service.

The Olive Boiler inspections and overhaul of equipment by power plant personnel continues. All major maintenance procedures were completed on both steam units. During May, the new Olive 1 boiler fuel control and burner management systems were tested. The Olive 1 boiler was washed and the cooling tower basin was also cleaned. Olive 1 is in hot standby in preparation for full load testing. The Olive 2 retrofit is progressing and on schedule.

The demolition of Magnolia Units 1 and 2 is complete. Abatement of the Magnolia 3 and 4 boiler ducting has been completed. This work was done by BWP to prepare for the Magnolia Power Project.

Lake One was available for generation. Plant personnel continue to work on final wiring installation of the emergency diesel generator. Training classes were held for SCADA and trading personnel on the capabilities and operational parameters of the LM-6000, and the balance of plant equipment to enhance SCADA Center understanding of how to best utilize this resource. These were the first of such classes as part of the educational exchange program that will be conducted for BWP and Glendale personnel by BWP.

The microturbines are unavailable until the entire gas compression and drying system are replaced.  This is expected to be in the next fiscal year. BWP is requesting additional proposals to replace the current gas dryer and compressor system. Power Plant managers met with Capstone Microturbine representatives on upgrades to the microturbine fuel nozzles.

May 2003 Unit Data

Power Supply

�        Transmission and Regional Transmission Organizations (RTOs)

There has been no major development on the RTO during May 2003. After the April 28 release of FERC�s White Paper on the Wholesale Power Market Platform, there has been increasing uncertainty regarding the form of RTO implementation to be used in various regions of the country. In California, the ISO continues to work on the implementation plans for Market Design 2002 (MD02). The ISO implementation plan is controversial because it proposes Locational Marginal Pricing implementation in California to re-dispatch generation units within the State to relieve overloaded transmission lines and use the power grid more efficiently. Since this method is unproven and untested, there are concerns that it could lead to a whole new set of unexpected consequences similar to those experiences during recent years in California with the ISO�s original design. BWP does not anticipate any negative consequence to BWP since it is not part of the ISO.

�        Sylmar Converter Station Replacement Project

In early June 2003, LADWP coordinated a meeting with other municipal owners of the project, the California Office of Emergency Services (OES) and Federal FEMA personnel to work on the process of allowing municipal utilities to draw project funds allocated by FEMA. A follow up meeting is scheduled within the next few weeks to outline details of paperwork that need to be submitted to OES by the municipal utilities. The engineering and fabrication work associated with this project continues with estimated completion in late 2004. BWP is anticipating to receive approximately $600,000 of the $ 2.5 million FEMA fund.

�        Magnolia Power Project (MPP)

The items in this report are provided as a general overview of the status of the Project. These items are discussed in considerable detail among the Project Participants at the Project Coordination meeting each Friday, and at Coordinating Committee meetings.

Budget

Forecasted final costs are within budget.

Schedule

The project remains on schedule for a commercial operation date of May 25, 2005.

Finance

Project participants have been reimbursed their Planning Work and Pre-Construction costs.  A small amount of disputed costs are being retained, and discussions are being held among the participants to resolve these costs.

CEC Compliance

The Conditions of Certification include 47 conditions that must be completed before the start of construction.  This had been reported as 50 in last month�s report, but it has been determined that three were not necessary before construction begins. Most submittals require review and approval by the CEC Compliance Manager before they are considered complete.  Of the 47 required submittals, 43 have been submitted and 34 have been approved.

Engineering, Procurement and Construction Activities since last Project Director�s Report of May 12

The following major activities were completed:

�        May 19:           Received bids on cooling towers

�        May 29:           Issued initial P&ID�s for review and comment

�        May 29:           Issued electrical one line diagram for review and comment

�        June 3:              Issued detailed baseline EPC schedule for review and comment

�        June 5:              Received bids for zero liquid discharge system

�        June 13:            Awarded contract for circulating water pumps

Transmission

Numerous options for the transmission of Project output to the ISO have been studied and estimated for construction. The options that remain under consideration and are being further developed include:

1.      Operational arrangements with LADWP that would provide opportunities to deliver Project output to the ISO under an integrated facilities agreement.  LADWP has offered a detailed proposal to the Magnolia participants, which Burbank staff is reviewing.

2.      Use of Southern California Edison�s (SCE) existing 66 kV system to deliver Project output to the ISO at Eagle Rock by connecting the Burbank system to SCE�s MacNeil Substation. On April 24, a letter was sent to SCE informing them that Burbank will execute an agreement to authorize and fund studies on this option. Sufficient funds have since been approved to pay the application fee and to handle the system impact study. Burbank staff is preparing the formal application.

3.      Use of SCE�s existing right-of-way from MacNeil to Sylmar to deliver Project output to the ISO at Sylmar by overbuilding with either 230 kV or 69 kV lines. The letter sent to SCE on April 24 also indicated Burbank�s interest in this option. 

4.      Displacement of Magnolia output with eastern generation resources of Burbank and Glendale. Initial review of this option holds promise as a system sale at an ISO interconnection point such as Marketplace. A detailed review is underway.

Public Information

The Groundbreaking Ceremony was held on June 10.

Coordinating Committee Actions at its Meeting on May 15

• Approved the final audit and reimbursements of Planning Work Costs and Pre-Construction Costs as follows:

• $18,418,287

•        100,908  (Less disputed amount by San Marcos and being investigated)

• $18,317,379  Total reimbursements to participants

• Authorized execution of the Americold Property Lease Agreement to enable the Project to provide laydown and storage area during construction.

• Authorized execution of the Reimbursement Agreement for acquisition of the property at 461 N. Varney Street for $397,750 to comply with CEC Condition Noise-5.

• Authorized execution of a Facilities Agreement with Southern California Edison for $677,320 that specifies the terms for Edison to engineer, design, construct, install, own, operate and maintain proposed upgrades to Edison�s electric system as a result of the Project�s interconnection to the existing electrical transmission grid and for SCPPA to pay for the upgrades.

• Authorized execution of a Personal Services Agreement with Thomas Roth for $170,000 to provide consulting services regarding operating procedures and fuel acquisition.

Project Manager�s Actions Since Coordinating Committee Meeting on May 15

With consultation and agreement from Project Participants, the following actions have been taken:

• Authorized $43,166 to Kvaerner for a Construction Mitigation Manager to oversee the dust mitigation plan, diesel emission plan, and the storm water run off plan during construction.

• Authorized $46,000 more for Edison to conduct a system impact study on interconnecting Burbank�s system and Edison�s system at McNeil. 

• Authorized $24,800 to RTKL Associates to make Board and Council presentations on the Master Plan, as well as provide more information to the CEC. 

• Authorized $28,312 to Kvaerner to reinstate a portion of the reclaim water line along side of the cooling tower and inside the raw water storage tank. 

• Authorized extension of the Professional Services Agreement with Entrix, Inc. for 12 months in the amount of $22,000 to continue to assist with air quality issues.

• Authorized extension of the Professional Services Agreement with URS Corporation for 12 months in the amount of $314,000 to continue on-going work associated with the CEC compliance. 

• Authorized deduction of  $211,000 from Kvaerner for construction of the 34.5 kV duct bank relocation due to the fact that BWP staff performed the work. 

• Authorized $166,519 to Kvaerner to upgrade the 1st and 2nd floor of the Control/Services Building.

• Authorized $373,581 to Kvaerner for addition of a 3rd floor and upgrades to the Control/Services Building.

• Authorized execution of a Personal Services Agreement with Linhart Peterson Powers Associates for 30 months in the amount of $980,000 for building department style code regulation and inspection of the Project and related services (Chief Building Officer).

Key Milestones and Anticipated Significant Activities For Next 30 Days

�        June 30:  Award contract for condensate pumps

�        July 1:      Issue bid package for digital control and information system 

�        July 7:      Start Construction

�        July 8:      Begin construction of 69kV duct banks   

�        July 9:      Award contract for boiler feed pumps

�        July 10:    Award contract for fuel gas compressors

Power Supply Capital Projects

�        SCADA/EMS

During May, a remote terminal unit (RTU) was modified with installation started at Clybourn  Distributing Station. Drawings were issued for the RTU at Alameda Distributing Station and drawings were completed for the Burbank Station RTU. A Purchase Order was issued to hire Robert Durham of EDG Power to interface Lake 1 with the SCADA system. Work to establish Automatic Generation Control (AGC) for Lake 1 is scheduled for the week of June 8th and improvement on the SCADA system database and several applications continue to progress. The application development documents for the Rotating Load Shedding and Automated Volt/VAR Switching of station capacitors were approved for final implementation.

SCADA Change Order #2 was modified and completed and Change Order #3 was finalized. These change orders were needed to customize application software to BWP's needs and address some networking requirements necessary to communicate remotely with BWP�s Power Plant Digital Control Systems and back-up SCADA remote master station.

Proposals for a Scheduling and Transaction Management System (STMS) were received from nine vendors and evaluation of these proposals have been initiated.

�        Telecom

A draft of the proposal for fiber optic services to connect the Team Disney Building, 500 S. Buena Vista St., to CORE, 914 N. Victory Blvd, was sent during May.

BWP Engineering personnel provided a formal proposal for fiber optic service to OnFiber for these following locations:

1.      Qwest Cyber Center: 3015 Winona Ave. to BWP Magnolia Basement.

2.      Warner Brothers: 400 Warner Blvd. to BWP Magnolia Basement

3.      Warner Brothers: 400 Warner Blvd. to Qwest Cyber Center 3015 Winona Ave.

4.      Walt Disney: 500 S. Buena Vista St. to Disney Channel Building 3800 W. Alameda Ave.

5.      Walt Disney: 500 S. Buena Vista St. to Qwest Cyber Center 3015 Winona Ave.

6.      Disney Channel Building: 3800 W. Alameda Ave. to Qwest Cyber Center 3015 Winona Ave.

BWP Engineering personnel provided a formal proposal for fiber optic service to Media Net for these following locations:

1.      FotoKem: 2800 W. Olive Ave. to Receiving Station �E�.

2.      Digital Symphony: 1011 W. Alameda Ave. to Receiving Station �E�.

BWP Engineering personnel are in the process of reviewing a project that involves customer connection to the Sprint facilities in Burbank.

�        BWP Administration Building Remodel

Phase III of the Administration Building Remodel Project is on hold pending further review of the final set of construction drawings and specifications. The BWP Building Committee will meet with RTKL Associates in the first week of June.

�        Electrical Distribution

The duct and manhole work to reroute the 34.5 kV Burbank-San Jose line around the MPP Project is 95% complete with some cable splicing remaining.

The work to re-insulate the 69,000-volt Toluca-Valley No. 1 line, and to replace poles as necessary, is completed.

Construction work is 85% complete for extending the ducts and manholes along Hollywood Way from the Warner Ranch Gate to Oak Street, along Oak Street to California Street, along California Street from Oak Street to Alameda Avenue, and also along Avon Street from Oak Street to the alley north of Alameda.

Underground ductwork has been completed near Hollywood Way and San Fernando, allowing an overhead line to be rerouted along a less visible path.

Substructure work for Phase I of the DCSB has been completed, including primary underground service to the old Wells Fargo building.

Since July 1, 2002, 120 poles have been replaced. Line crews are rebuilding pole lines in the Rancho area and converting the remaining portion of Feeder N-15 to 12,470 volts.

Since July 1, 2002, nine overhead oil switches have been replaced. Engineering drawings were issued to enable 12 additional oil switches to be replaced with air break switches.

Victory-Valley No. 2, the third 34,500-volt line position at Victory Distributing Station, is completed.

Oil switches at the San Jose Distributing Station have been replaced with SF6 switches.

Electric service to Howard Business Park (Ontario Street) from the 34,500-volt system has been completed.

Service to Radio Shack has been rerouted and energized to clear the old Police site.

In addition to the identified major projects, 28 padmounted customer stations have been engineered, and 18 have been issued to the field since July 1, including the Phase II Burbank High and John Burroughs High School expansions.

Six street light improvement and undergrounding projects have been issued to the field. This includes a project to convert a series circuit at the intersection of Olive and Alameda.

Conduit work for the final phase of the Ben Mar Hills Project is underway, and conduit work for the Magnolia Boulevard Project will begin in June 2003.

Work has been completed to replace 1,200 residential electric meters with meters that can be read remotely.

AMC related work is in progress to convert and reroute the overhead services from the pole platform to the frontage on San Fernando Road. The pole platform will be removed by June 17, or sooner, if Pacific Bell completes its work before the specified time.

BWP staff is participating in a Caltrans meeting to lengthen the Alameda, Hollywood Way and Pass Ave. bridges over SR-134, and developing cost estimates for Phase-2 of this project. Phase-1, which includes construction of the new Hollywood Way Substation and a transfer of load, is 25% complete. Construction of the new off-ramp that will facilitate the construction of the new Hollywood Way Distributing Station, will be completed by June 30, 2003. BWP staff continues to expect the new Hollywood Way Station to be completed by April 2004. The existing off-ramp was closed as of May 19, 2003, and will remain closed until the new off-ramp is open.

Legislative Update

Refer to the attached legislative reports. 

RED:RAC:FCF:JWL:GLS

H:JUNE W&E OPERATIONS REPORT

Attachments

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