WATER UPDATE

Water Quality

     �        Water quality during August met or exceeded State and Federal drinking water standards.

     �        The Valley Pumping Plant blend ratio for the month of August was 60% MWD to 40% BOU.

Financial and Operations Update

     �        Potable water sales for August were 983,570 units. This was 0.4% lower than the budgeted sales. Revenue for August was $1,513,451.

     �        Reclaimed water sales for August was 32,797 billing units. Revenue for August was $42,433, not including Power Plant sales.

     �        The Water Cost Adjustment Charge (WCAC) account had a balance of $1,227,556 as of August 31, 2003.

     �        Fiscal Year 2002-03 Year-To-Date preliminary Water Fund Financial Results as of August 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. Certification of completion was required by September 5^th.

    �        The design work for the modifications to the Liquid Phase Granulated Activated Carbon  (LPGAC) units has been completed.  Project construction has been approved by the EPA and is underway. Completion is scheduled for early November 2003.

Capital Projects

    �        Replacement of interior joints at Reservoir No. 2 is complete. The reservoir has been cleaned and disinfected, and is currently being leak tested. The results of the leak testing requires additional work by the contractor. The work will begin the third week of September. The reservoir will be returned to service by late October 2003.

     �        Installation of the 8-inch reclaimed main on Empire Ave. from Robert Gross Park to the airport was completed in August 2003.

     �        A main break at the entrance of the Empire Center at the intersection of Empire Ave. and Valpreda Street on August 9, 2003 took Water Division staff a week to repair the damage and reopen the intersection. 

     �        The project to install 1,100 L.F. of 12-inch water main in Buena Vista St. from Alameda Ave. to Olive Ave. began the last week of August 2003.

Legislative Update

     �        Refer to the attached legislative reports.

ELECTRIC UPDATE

Electric Reliability

    �        During August 2003, there were 2 outages that affected 1,180 customers, which represents a systemwide average of 0.0783 outages per year compared with an industry average of 1.2 outages per year. The first outage, on Burbank 4 kV Feeder B-11 occurred on Sunday, August 10, was caused by a phase imbalance due to high air conditioning load. The outage limit of just over 3 hours was longer than normal, primarily because the Burbank Remote Terminal Unit was out of service for a SCADA related upgrade. As the result, the dispatchers did not have any remote indication or control of the feeder from the SCADA Center during this period. The second outage, also heat related, was caused by a broken phase conductor. The average service availability is 99.9908%, exceeding the City goal of 99.99%. The average outage length was 101 minutes, compared with an industry average of 80 minutes.

The following table shows the systemwide reliability statistics for Fiscal Year 2003-04 through August 2003, compared to Fiscal Year 2002-03.

Financial and Operations Update

     �        MWh sales of 110,572 for August were above the budgeted amount of 109,024. Year-to-date MWh sales remain below budget due to conservation efforts.

     �        Wholesale gross margins were above budget for the month of August due to BWP�s ability to utilize its assets to increase sales in the wholesale market.

     �        Fiscal Year 2002-03 year-to-date preliminary Power Financial Results as of August 31, 2003:

Local Generation Operations Update

Unit Status

     �        Olive 1 is online and available for service.

     �        Olive 2 is online for testing. It is restricted for service until the NOx retrofit is completed upon receipt of AQMD acceptance by September 2003.

     �        Olive 3 is unavailable for service and used for emergencies only.

     �        Olive 4 is available for service.

     �        Magnolia 5 is available for service.

     �        Lake One is available for service.

BWP has recently completed and commissioned the installation of two emissions control systems that have achieved the lowest NOx emission rate on any gas-fired steam power generation facility in the United States. Olive Unit 1 was back to commercial operation in July and Olive Unit 2 will be back to commercial operation in September. The project was completed within budget, on time, and well within its performance objectives. The retrofit sought to attain a new performance level in NOx reduction, from 9 parts per million to 5 parts per million (9 to 5 ppm) by using only Selective Catalytic Reduction (SCR) technology. The Olive Unit 1 and 2 retrofit will set a new standard for the power industry, and its efficient and well-coordinated installation will be an outcome many will want to emulate. Applied Utility System (AUS), the designer/builder of this retrofit, developed a new approach to SCR that improves the performance of SCR NOx reduction.

The Olive Unit 1 retrofit involved major modifications to the existing steam coils, air pre-heater, and dust collector coupled with the new installation of a forced draft fan, SCR reactor, ammonia vaporization and injection equipment. This unit tripped off line on August 18^th due to a loss of generator excitation. BWP staff found a blown fuse on the exciter power supply circuit board.  The cause was investigated and the fuse was replaced. Staff could not find any apparent reason for the blown fuse. The unit was off line from 0956 to 1620 and then returned to normal service.

The Olive 2 retrofit involved much of the same modifications on Unit 1 with the inclusion of a new feed water heater, piping, and improvements to the burners and the power plant control system. The flushing of feed system lines was completed. Testing started on August 8. Startup was aborted due to the loss of 2A Boiler Feedwater Pump. The rotating element was seized to casing due to the reverse rotation of the shaft and excessive heat. An investigation showed the casualty was due to an improper startup procedure from the contractor and failure of the feedwater pump discharge check valve to prevent a backflow of water from the #4 feedwater heater. The unit was returned to service and is currently in service for AQMD testing.

Lake One is available for power generation. On August 25, a breakdown was reported to AQMD due to the ammonia injection nozzle plugging. A new nozzle was installed to decrease maintenance inspection intervals. Maintenance staff has completed installing drain lines on the air filter inlet housing. An access platform was installed for the emergency diesel generator.

Olive 3 was out of service due to problems with the fuel valve controller wiring.

Olive 4 local metering at the Olive Control House was repaired and this unit is now available for service.

The landfill microturbines have not been operated this month. BWP is in the initial engineering phase of installing new gas compressors and dryers.

August 2003 Unit Data

Power Supply

    �        FERC Data Requests and Refund Calculation

As a result of the FERC investigation into California�s dysfunctional power market in June 2003, BWP was found clear from Enron type transactions. BWP has also been excluded from FERC investigation on sales over $250/MWh. Currently, BWP is still waiting for FERC�s refund decision.

     �        Restructuring of the Gas Industry in Southern California

The future of the gas industry in Southern California remains unknown. Due to the number of complaints filed concerning the revised implementation plan for the Comprehensive Restructuring of Southern California Gas Company (�SoCalGas�), the California Public Utilities Commission (CPUC) has told SoCalGas to resubmit a plan that is more consistent with terms of the original settlement. At this time, many of the original signatories are withdrawing their support to the restructuring plan. There were significant efforts in August to get the CPUC to drop this plan completely. The restructuring proposal will result in an increase in costs and a decrease in reliability, therefore, BWP will continue to work with other utilities to have the proposal modified or dropped altogether.

     �        Sylmar Converter Station Replacement Project

BWP is still waiting for its $634,000 drawdown request of the total $2.4 million. The California Office of Emergency Services (OES) informed us that the State Budget passed and BWP will get its payment soon. A meeting is scheduled with the Los Angeles Department of Water and Power (LADWP) in early September to review procedures and to ensure that LADWP is providing �paperwork� to facilitate the process. The engineering and fabrication work associated with this project continues with a scheduled completion date in late 2004. A meeting has been scheduled for September 24^th.  LADWP will provide participants with updates on the project progress.

     �        Magnolia Power Project (MPP)

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

Safety

The Project goal is zero recordable accidents. To date there have been no recordable accidents.

Budget

Staff is in the beginning of the process to develop a final construction budget and expects the forecasted final costs to be within the original budget estimate. 

Schedule

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

Finance

Legal and financial work is proceeding to prepare for a project refinancing. All of the proceeds from any financing would be directed to the refunding of a portion of the existing bonds.

CEC Compliance

The CEC issued letters relaxing two visual conditions concerning color requirements and cooling tower plume. The Project submitted environmental information on two offsite areas that will be used for storage and off loading heavy equipment. Monthly reports are being prepared as required by the CEC. No violations of conditions have occurred.

Engineering, Procurement and Construction Activities since the last Project Director�s Report of August 18

• August 18:        Awarded contract for condenser

• August 26:        Issued bids for circulating water pipe

• August 28:        Awarded contract for boiler feed pumps

• August 29:        Awarded contract for circulating water pumps

• September 2:    Received bids and began evaluation for distributed control system

• September 3:    Awarded contract for balance of plant pumps

• September 3:    Issued bids for isophase duct

• September 3:    Awarded contract for condensate pumps

• September 4:    Began foundation piers for heat recovery steam generator

Transmission

Staff is reviewing the Letter Agreement that will serve as the Facilities Agreement between Burbank and LADWP for the Project�s share of the breaker upgrades at Receiving Station E. The Letter Agreement with Burbank is the quickest route to conclude this matter. (The Interconnect Agreement between Burbank and SCPPA will require some modification to allow the Project to reimburse Burbank for the facilities cost.)

Various regulatory, contractual and physical options for the transmission of Project output to the ISO have been studied and estimated for construction. The legal and operational review of the contractual option should be finished by the end of September, leaving economic feasibility as the remaining factor.

Physical ties involving Edison continue to be actively pursued.

Staff is continuing to review LADWP�s proposal for operational arrangements. That would provide opportunities to deliver Project output to the ISO under an integrated facility agreement.

Coordinating Committee Actions at its Meeting on August 21

• Authorized purchase of a Builder�s Risk Indemnity Policy with Millenium Insurance Company.

• Approved a SCPPA Board Resolution to prepare documents for sale and issuance of Project A Bonds and execution and delivery of the Swap Agreement.

Project Manager�s (Project Director�s) Actions Since Last Coordinating Committee Meeting

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

• Authorized $31,400 and a PSA with Jennifer Wu to provide environmental services to assist with license compliance activities.

• Authorized $6,622 for Taylor-Dunn to supply an electric vehicle yard cart.

• Authorized $92,000 for URS to supply geotechnical observation and testing services.

Key Milestones and Anticipated Significant Activities For the Next 30 Days

     �        September 17:  Issue bids for continuous emission monitoring system equipment

     �        September 22:  Begin installation of fire protection piping

     �        September 23:  Submit generator step up transformer package to Chief Building
                        Officer

     �        September 23:  Award contract for steam turbine generator building

     �        October 6:        Award contract for distributed control system

     �        October 10:      Award contract for medium voltage switchgear

     �        October 13:      Begin steam turbine building foundation piers

Coordinating Committee Meeting

The next meeting of the Coordinating Committee will be on October 16.

Power Supply Capital Projects

     �        SCADA/EMS

During August, a remote terminal unit (RTU) was installed and tested at the Burbank Distributing Station.  Installation of the San Jose Distributing Station RTU is 80% completed and testing will begin in September 2003. Installation of the Golden State RTU is 10% completed.  

Evaluation of the proposals for a Scheduling and Transaction Management System (STMS) from nine vendors is completed. A recommendation to enter into a contract with OATI, Inc. was prepared for consideration and approval at the September BWP Board meeting.

     �        Telecom

BWP field personnel completed the fiber optic job to connect the Team Disney Building at 500 S. Buena Vista St. to Disney CORE at 914 N. Victory Blvd.

BWP field personnel completed the fiber optic cable installation along Alameda Avenue from Victory Boulevard to Keystone Street, and provided additional fiber strands to the Team Disney Building and Disney Frank Wells Building. This provides an additional fiber path for both Disney buildings.

BWP Engineering provided a preliminary fiber optic proposal to Sprint to connect their Sprint Building at 100 S. Flower Street to the SBC Central Office on Third and Palm.

A formal proposal for fiber optic service was drafted and sent to FotoKem to connect 2801 W. Alameda Ave. and 4111 W. Alameda Ave.

OnFiber accepted BWP�s formal proposal to provide a fiber optic connection between the Qwest Cyber Center 3105 Winona Ave and Level 3 fiber ring through the BWP Magnolia Basement.

     �        BWP Administration Building Remodel

BWP met with RTKL Associates Inc. at their offices in downtown Los Angeles on Friday, August 22, 2003 to fine tune several design changes and floor space options for Phase III of the Administration Building Remodel Project. This project has been on hold pending further review of the final set of construction drawings and specifications by RTKL Associates Inc., the new architects.

     �        Electrical Distribution

Rerouting of the 34.5 kV Burbank-San Jose line is completed.

Construction work 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 is completed.

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

Since July 1, 2003, a total of seventeen pole replacements have been issued to the field, with six replacements occurring in August. Twelve poles have been replaced in this fiscal year, seven of which were replaced in August.

Since July 1, 2003, six pad mounted customer stations have been engineered, three of which were engineered in August. Since July there have been two pad mounted customer stations issued to the field.

Seven oil switches were replaced in August and six were issued to the field. The remaining twelve oil switches will be replaced with air break switches in this fiscal year.

Two street light improvement and undergrounding projects, and one series circuit conversion to low voltage have been engineered  (Glenoaks Blvd. between Orchard and Tulare).

Conduit work for the final phase of the Ben Mar Hills Project and the Magnolia Boulevard Project is completed. The Ben Mar Hills portion is almost completed and the Magnolia Boulevard portion is still under construction. The second phase of the Magnolia Boulevard Project between Mariposa Street and Buena Vista Street is being engineered. 

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 30% complete. Construction of the new off-ramp was completed on June 30, 2003. BWP staff continues to expect the new Hollywood Way Station to be completed by April 2004.

    �        Customer Service

The Customer Service Division is implementing the Indus Banner billing system to enhance accuracy and timely customer bills. The system is expected to go live in April 2004.

Project Overview:

    �        78 deliverables, 37 completed, 50% complete.

    �        Indus implementation budget $2,261,012, expended $697,348, 31%.

    �        Total project budget $4,678,300, expended $1,988,406, 43%.

Phased Implementation

    �        Phase I (Go-live) - produce, process, and record accurate and timely paper bills; accept, process, and record all current payment methods.

    �        Phase II - implement web-based system features to allow customers to view account information and pay over the Internet.

    �        Phase III - implement interfaces to meter inventory systems, GIS, and other systems.

Meter Inventory

    �        At this time, the Banner product has a very basic meter inventory set-up. Although the system tracks and stores all meter information related to billing, it does not store meter-testing information without modification.  In addition, it does not store all the information the test shops require for their meter maintenance programs. In accordance to BWP's philosophy to enhance bill accuracy and minimize modifications, the Electric Division has decided to purchase Powersolve to handle all their meter testing and inventory data.

    �        The Water Division has begun researching options to match their meter inventory and testing needs to the basic Banner application. They are currently considering purchasing a separate product to handle their meter testing and inventory data.

    �        Interfacing the meter inventory systems to Banner is being priced by Indus for budget purposes should BWP choose to go with the interface.  However, implementation of the interfaces will not be done before go-live, but rather as part of Phase III implementation as mentioned above.

Conversion and Testing

    �        Phase I of the conversion mapping document has been signed off.  

    �        Customer, premise, and account data will be converted on August 8 so that staff may begin testing on real data. Testing on converted data will continue through December.  Full cycle parallel testing will begin in January.

    �        13 months of consumption, service, and billing history data will be converted.

   �        Meter location and other special notations will be converted, but other freeform notes will not be converted. G & R has some critical customer information in the notes section and the decision was made that this information will be input manually as necessary before go-live.

    �        All Accounts Receivable will come forward as lump sums into individual accounts.  

    �        The legacy system will be run in parallel for a while so staff can always go back to the original system if problems arise.

Bill Print

    �        The design specification has been signed-off and Group 1 has begun building the technical specification.

    �        The effort to display totalized meters on the bill is still on pending.

    �        Group 1 will return in late September to begin installation.

Rates & Complex Billing (�Billgen�)

    �        Customer Service has made a final decision not to build interface for the purpose of passing meter reads into Banner so they might be displayed on the bill. Large customers will be able to view 15-minute interval data on the Internet and the bill will display actual monthly consumption data.

    �        Indus will be on-site August 18 to install Billgen and begin training.

    �        Banner has the ability to prorate rates on a daily basis, normalized to 30 days. Water and electric consumption, sewer, G & R, and electric demand will be prorated. Service charge and water demand will not be prorated.

Modifications

The six modifications and design specifications that were deemed essentials were developed, reviewed, and have been signed-off. These modifications fall within the budgeted allocation.

    �        Electric Demand

    �        Water Demand

    �        Mass Create Service Order

    �        Mass Create Premise

    �        Empire Center Rate

    �        Customer Maintenance Fields

Finance Issues

    �        Currently, the Finance Division manually calculates the amount of transfer according to percentages of sales for in-lieu and streetlights. Banner is working to automate these transfer calculations.

    �        Banner is also working to set up and maintain accounts such as Accounts Receivable, payments, adjustments, write-offs, and write-off recovery for each fund.

    �        Public Works (PW) chooses to use Banner, instead of Oracle, to record miscellaneous revenue for extra pick-ups and bins in order to maintain all PW revenue in one system.  

    �        Conversion to the FERC accounting system for electric and water is still pending.

Miscellaneous Issues

   �        Upon the agreed upon resolution to the billing issue in June, an Indus representative returned to the City to reinstall the Banner application and work more interactively with the City�s IT staff to ensure proper knowledge transfer and City independence in the future.

    �        A �go-live/cut-over� list has been started.  At this point, Customer Service expects to stop meter reading and billing about one week prior to cut-over and collection activity will be tolled for the month of April and will begin again in May.

    �        Three core team members and two IT staff attended a Crystal Reports class. The core team will work with Indus to develop essential reports prior to go-live.

Legislative Update

Refer to the attached legislative reports.

RED:RAC:FCF:JWL:GLS

H:SEPTEMBER W&E OPERATIONS REPORT

Attachments

go to the top