WATER UPDATE

Water Quality

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

• The Valley Pumping Plant blend ratio for the month of October was 63% MWD to 37% BOU.

Financial and Operations Update

• Potable water sales for October were 919,686 billing units. This was 4% higher than the budgeted sales. Revenue for October was $1,435,950. 

• Reclaimed water sales for October were 35,542 billing units. Revenue for October was $40,953, not including Power Plant sales. 

• The Water Cost Adjustment Charge (WCAC) account had a balance of $1,227,884 as of October 31, 2003.

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

(  ) Unfavorable
(1) Purchased water expenses are higher due to reduced production from the treatment plant resulting in higher Metropolitan Water District (MWD) water purchases.

• Fiscal Year 2003-04 preliminary Water Fund Financial Reserve balances as of October 31, 2003 are summarized in the following table:

Environmental Protection Agency (EPA)

• Modifications to the Liquid Phase Granulated Activated Carbon (LPGAC) units are under construction. Two-thirds of the GAC units have been completed and construction is estimated to continue through December 2003. The Treatment Plant will continue to experience reduced operating capacity during construction. Reduced production will result in the need for additional purchased water. 

• Modifications to the Vapor Phase Granulated Activated Carbon (VPGAC) units are being negotiated with Calgon Corporation. Design will begin in December with construction to follow in January - February 2004.

• Capital Projects

• Replacement of interior joints at Reservoir No. 2 is complete. The reservoir has been cleaned and disinfected, and is leak tested. As the result of the leak testing, additional work by the contractor is required. Localized problems with the bonding of the lining are being resolved. The reservoir will be returned to service by late December 2003.

• The project to install 1,100 L.F. of 12-inch water main in Buena Vista St. from Alameda Ave. to Olive Ave. was completed at the end of October.  Water service connections are being tied over to the new main. Abandonment of the old main will take place in November 2003.

• Construction of a new 8-inch water main in Olive Ave. from Kenneth Rd. to Seventh St. began the last week of October 2003.

 Legislative Update

• Refer to the attached legislative reports.

ELECTRIC UPDATE

Electric Reliability

• During October 2003 there were two outages that affected 1,224 customers. This represents a systemwide average of 0.1028 outages per year, compared with an industry average of 1.2 outages per year. Since July 1, the average service availability is 99.9951%, exceeding the City goal of 99.99%. The average outage length was 82 minutes, compared with an industry average of 80 minutes.

The following table shows the systemwide reliability statistics through October 2003 for Fiscal Year 2003-04 as compared to Fiscal Year 2002-03:

Financial and Operations Update

• MWh sales of 97,967 for October were above the budgeted amount of 91,188 due to warmer than average temperatures.  

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

• Fiscal Year 2003-04 year-to-date preliminary Power Financial Results as of October 31, 2003:

(1) Includes accrual for unbilled retail revenue of $ 675k starting in October 2003.

• Fiscal Year 2003-04 preliminary Power Fund Financial Reserve as of October 31, 2003 are
  summarized in the following table:

Local Generation Operations Update

Unit Status

• Olive 1 is in hot-standby and available for service. The installation and programming of the plant air compressor sequencer panel has been completed.

• Olive 2 is in hot-standby and available for service. The NOx retrofit project has been completed. This unit is currently restricted to 30 MW�s until the repair of the 2A boiler feed pump is completed. It is expected that this unit will be 100% available for service by mid- December. This unit is scheduled to come on-line between December 12^th and December 19^th for Relative Accuracy Test Audit (RATA) testing. Flow balancing of the ammonia injection grid and tuning of combustion control loops will occur prior to the RATA. Plant personnel are currently working on updating operational procedures for startup and shutdown.

• Olive 3 is unavailable for service and used for emergencies only.  It is out of service because of problems with the fuel valve controller wiring.

• Olive 4 is available for service.

• Magnolia 5 is available for service. 

• Lake One is available for service.  

• Landfill microturbines have not been operating this month. The consultant is preparing a presentation to staff for the microturbine upgrade project.

October 2003 Unit Data

Power Supply 

• Sylmar Converter Station Replacement Project

BWP received a second check in the amount of $207,559 from FEMA and a check for $126,660 from California�s Office of Emergency Services (OES).

Engineering and fabrication work associated with this project continues with a scheduled completion date in late 2004.

• 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 the monthly Coordinating Committee meetings.

Safety

The Project goal is zero recordable accidents.  Through October, Kvaerner has worked 34,230 man-hours with no recordable accidents. 

Budget

The process to develop a revised construction budget has begun and the Project Manager will review the revised construction budget with the Coordinating Committee at the December meeting.

Schedule

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

Finance

No Project A refinancing is planned at this time.

CEC Compliance

The CEC approved two offsite areas that will be used for storage and off loading heavy equipment. Monthly reports are being made as required by the CEC. No violations of conditions have occurred.

Engineering, Procurement and Construction Activities since the last Project Director�s Report of October 13

Transmission

City attorneys in Los Angeles have determined that the Facilities Agreement will require the approval of the Board of Water and Power Commissioners. LADWP staff continues to assure Greg Simay that there is no problem with the contents of the Facilities Agreement and that Board approval is a matter of governance. LADWP staff is scheduling approval of the Facilities Agreement for the December meeting of the Commission.

Studies for various regulatory, contractual and physical options for the transmission of Project output to the ISO are essentially complete. The individual staffs of Burbank and Glendale have reviewed the economic feasibility, and have concluded that they can offer significant savings to the ISO participants in comparison to the Open Access Transmission Tariff. The General Managers of both cities will be meeting next week (along with their power supply Assistant General Managers) to review the deal points and determine the actual savings that could be offered.

Physical ties involving Edison continue to be actively pursued. Greg Simay and Fred Fletcher met informally with Don Allen and have reached a preliminary conclusion that the physical option, while likely to be contested, is legally feasible. Greg Simay and Fred Fletcher will be visiting James Pope, currently General Manager of the Santa Clara utility, to learn what was involved when their utility built a 230 kV underground transmission line in an urban area, similar to what is being explored for the Project.

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

Coordinating Committee Actions at its Meeting on September 17 (no Coordinating Committee meeting was held in October)

• Authorized award of contract to lowest evaluated bidder for generator step up and auxiliary transformers in compliance with SCPPA requirements

• Authorized award of contract for Gas Insulated Substation facility to ABB

            Project Manager's (Project Director's) Actions Since Last Project Director's Report of October 13 

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

• Authorized $439,409 for Kvaerner to add a reverse osmosis permeate storage tank (with 180,000 gallon capacity) and two (500 gpm) transfer pumps to feed the demineralizer.

• Approved a Collectible Work Authorization for $368,709 for the Gas Company to furnish and install a new gas meter station (adjacent to the existing gas meters), and to furnish and install the gas piping associated with the new meter.

• Authorized a ($29,551) deduct from GE to delete a Human-Machine Interface (HMI) with a 20� CRT and dot matrix printer, to add an ink jet printer with multi-unit capability, to upgrade two CRTs from 17�to 19,� and to add dead bus closure provisions.

• Authorized $797,173 for Kvaerner to perform the underpinning and seismic retrofit work needed on the existing foundation for the Service and Control Building for compliance with codes, in order to meet Seismic Zone 4 criteria.

• Authorized $22,920 for Kvaerner�s performance of out-of-scope engineering work during the Limited Notice to Proceed (LNTP) period that included preliminary evaluation of the Service and Control Building foundation, review of survey data, development of bore hole locations, and an engineering study.

• Authorized $55,382 for Kvaerner to add lube oil piping.

• Authorized $5,104 for Kvaerner to provide a template for setting of the HRSG stack anchor bolts.

• Authorized ($450,000) deducted from the target cost in the Agreement with Kvaerner in return for SCPPA�s acceptance of Kvaerner�s PI insurance program.

• Authorized $163,500 for Alstom to provide the HRSG finish-painted in lieu of primer coating only.

• Approved a Professional Service Agreement with John Feeney to provide the owner�s quality assurance welding inspection services.

• Approved a Professional Services Agreement with Beth Neaman to provide Project accounting services.

Key Milestones and Anticipated Significant Activities For the Next 30 Days

Coordinating Committee Meeting

The next meeting of the Coordinating Committee will be on December 18. 

Power Supply Capital Projects

�        SCADA/EMS

All drawings for the RTU upgrades have been issued.

Testing of the Golden State RTU is still in progress. The installation of the Pacific RTU has started. Conversion of the map board is nearly complete and currently displays breaker status for all stations converted to date.

To date, staff has developed screens and configured 18 new station annunciators into the SCADA database. These new displays mimic the annunciator panels at the various stations and therefore inform dispatchers of the specific reason for an alarm.  This allows the dispatchers to operate more efficiently and avoid making unnecessary trips to stations.

BWP is still working to resolve insurance issues with Telvent�s insurance carrier before Purchasing can issue Change Orders No. 2 and No.3.  

A contract with OATI, Inc. for a Scheduling and Transaction Management System (STMS) has been executed and project planning for implementation is underway. The web-based OATI software, and integration with the Telvent system, is expected to be completed by early 2004.

�        Telecom

BWP Engineering provided a proposal to Plus 8 Digital for fiber optic services to connect 300 S. Flower St. to 111 Verdugo Ave.

BWP Engineering provided a proposal to Warner Music Group for fiber optic service to connect 3300 Riverside Drive to Pinnacle Building at 3400 W. Olive Ave.

BWP's formal proposal was accepted by Warner Brothers to have BWP provide additional fiber optic strands from Warner Brothers Building 157 to Dalt�s Building 3500 W. Olive Ave. A job order was generated and released to the Operations Section to complete this request.

BWP generated and released a fiber optic job to connect NBC Studios to BWP�s fiber optic ring. A job order was generated and released to the Operations Section to complete this request. 

BWP's formal proposal was accepted by Warner Brothers to have BWP relocate fiber optic termination box at WEA 111 N. Hollywood Way. A job order was generated and released to the Operations Section to complete this request.

Field personnel completed a fiber optic job for OnFiber to provide a redundant fiber optic connection between Qwest Cyber Center 3015 Winona Ave. and a customer in Pasadena. Connection is through BWP�s fiber optic ring and Level 3�s fiber optic ring to connect facilities in Burbank and in Pasadena.

Field personnel completed a fiber optic job for FotoKem to provide a fiber optic connection between 2801 W. Alameda Ave. and Fairmont Building 4111 W. Alameda Ave.

Field personnel completed a fiber optic job for Warner Brothers to provide additional fiber optic strands from Warner Brothers Building 157 to Dalt�s Building 3500 W. Olive Ave.

Field personnel completed the fiber optic job for Warner Brothers to relocate the fiber optic termination box at WEA 111 N. Hollywood Way.

�        BWP Administration Building Remodel

This project has been on hold pending review of the final set of construction drawings and specifications by RTKL Associates Inc.

�        Electrical Distribution

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

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 complete. Perry C. Thomas, the private contractor for Phase-2 underground ductwork, started construction on October 27 and completed the installation of all manholes. They are currently working on the installation of a duct system on Oak Street near Catalina Street towards Buena Vista and California Street, and this work is approximately 30 percent completed.

Since July 1, 2003, a total of forty-six pole replacements/installations have been issued to the field, with eighteen replacements occurring in October. Thirty-two poles have been replaced in this fiscal year, eleven of which were replaced in September.

Since July 1, 2003, nine pad mounted customer stations have been engineered, one of which was engineered in October. Since July, there have been four pad mounted customer stations issued to the field.

Construction is complete for the relocation of the BWP facilities located at the main Warner Bros. site.  At Warner Bros. request, and at its cost, this work was completed by the end of October as scheduled.

All work for the final phase of the Ben Mar Hills Project and the Magnolia Boulevard Project-Phase 1 is complete. The second phase of the Magnolia Boulevard Project between Pass Avenue 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 60% 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. By June 30, 2004 most of the 34,500 volt system will be reconfigured to connect four or five lines from Capon Switching Station.

SCPPA awarded a contract to ABB Inc. to design/build the Gas Insulated Switchgear (GIS) Expansion at the Olive Switching Station.  This will connect the Magnolia Power Plant to the Olive Switching Station. The preliminary design is in progress and construction is expected to be completed by November 2004.

Bock Co. is installing a new underground duct system in the BWP Yard to underground two 69,000 volt overhead lines as a part of BWP�s overall plan to improve and modernize the BWP generating site.

BWP staff has started work on the Olive Switching Station retrofit by upgrading circuit breakers, busses and other equipment. This upgrade is needed because of the Magnolia Power Project.           

There have been 324 installations of remote reading meters as of September 26, 2003.

Legislative Update

Refer to the attached legislative reports.

RED:RAC:FCF:JWL:GLS

H:NOVEMBER W&E OPERATIONS REPORT

Attachments

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