WATER UPDATE

Water Quality

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

• The Valley Pumping Plant blend ratio for the month of February was 43% MWD to 57% BOU.

Financial and Operations Update0

• Potable water sales for February were 622,162 billing units. This was 6% higher than the budgeted sales. Revenue for February was $1,110,544.

• Reclaimed water sales for February were 8,527 billing units. Revenue for February was $11,485, not including Power Plant sales.

• The Water Cost Adjustment Charge (WCAC) account had a balance of $ 1,241,819 as of February 29, 2004.

• Fiscal Year 2002-03 Year-To-Date preliminary Water Fund Financial Results as of February 29, 2004:

(  ) 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 February 29, 2004 are summarized in the following table:

Environmental Protection Agency (EPA)

• Modifications to the Vapor Phase Granulated Activated Carbon (VPGAC) units are being designed by Calgon Corporation. The design work began in January. EPA approval of the design is anticipated in April. Construction will follow in May through June 2004. The Treatment Plant will experience reduced operating capacity during construction, therefore, there will be an increased need for purchased water.

Capital Projects

• Replacement of interior joints at Reservoir No. 2 is complete. The reservoir has been cleaned, disinfected, and is leak tested. As a result of the leak testing, additional work by the contractor has been required. The contractor is completing remedial work on localized sections of the joint seals. The reservoir will be placed back in service by the end of March 2004.

• Construction of a new 12-inch main on Verdugo Ave. between Third St. and South San Fernando Blvd. began in January. This construction is related to the Senior Artist Colony project and scheduled to be completed by April 2004.

• Construction of a new reclaimed water supply line for the BWP Administration Building air conditioning system is underway. The existing line is being displaced by the MPP project.  Completion is scheduled for March. 

• Construction of a 12-inch distribution for 200 l.f. in Empire at Naomi St. begun in late February has been completed.

Legislative Update

• Refer to the attached legislative reports.

ELECTRIC UPDATE 

Electric Reliability

• There were no outages during February 2004. As of February 2004, the systemwide average remains at 0.1976 outages per year, compared with an industry average of 1.2 outages per year. As of February 2004, the average service availability is 99.9955%, exceeding the City goal of 99.99%. The average outage length remains 68 minutes, compared with an industry average of 80 minutes.

The following table shows the systemwide reliability statistics through February 2004 for Fiscal Year 2003-04 as compared to Fiscal Year 2002-03:

Financial and Operations Update 

• MWh sales of 81,416 for February were above the budgeted amount of 77,741. Year-to-date MWh sales remain above budget due to warmer average temperatures during the summer months and cooler average temperatures during the winter months.

• Wholesale gross margins were above budget for the month of February 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 February 29, 2004:

• Fiscal Year 2003-04 preliminary Power Fund Financial Reserve as of February 29, 2004 are summarized in the following table:

Local Generation Operations Update

Unit Status

• Olive 1 is down for its annual boiler inspection. This unit came back in hot-standby status on March 12.   

• Olive 2 is in hot-standby and available for service.  

• Olive 3 has been decommissioned as of December 31, 2003 per the SCAQMD permit requirements of January 31^st.  

• Olive 4 has been decommissioned as of December 31, 2003 per the SCAQMD permit requirements. 

• Magnolia 5 has been decommissioned as of December 31, 2003 per the SCAQMD permit requirements. 

• Lake One is available for service.  

• The Micro-Turbine Project has been awarded to SCS Energy. The project is now in the planning stage. The Micro-Turbines will not be running until the spring of 2004. 

• Hydro Energy Production for February was 58,800 kWh compared to the 59,000 kWh goal. Year-to-date kWh production of 566,100 was above the kWh goal of 467,000.

February 2004 Unit Data

Power Supply

• Restructuring of the Gas Industry in Southern California

BWP staff attended a public meeting with Commissioner Wood on January 16th regarding implementation of the SoCalGas Comprehensive Settlement Agreement (CSA). The goal of the CSA is to restructure the way gas transportation is handled on the SoCalGas systems. BWP staff worked on a letter to the California Public Utility Commission urging them not to adopt the implementation of the settlement. Letters were prepared by and sent out by Mayor Murphy and BWP�s General Manager to the Commissioners explaining how the proposed settlement would negatively impact the Magnolia Power Project. BWP�s Legislative Analyst worked with other Magnolia Power Project participants to encourage them to send similar supporting letters.

Due to the intensive lobbying efforts, an Alternative Decision, which supports BWP position was prepared by Commissioner Lynch. Although the CPUC was scheduled to vote on this issue on February 25^th, however, this item was deferred to the meeting in March. Meanwhile, Commisioner Brown has revised the Draft Administrative Law Judge (ALJ) Decision by Judge DeUlloa. This revised draft is currently reviewed by staff. BWP staff is hoping that the Lynch Alternative will be adopted by the full Commission in March abandoning the Comprehensive Settlement.

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.

Safety

Through February, Kvaerner has worked 119,947 man-hours with no lost time cases and two recordable cases.

Budget

Refer to the attachment for detailed information on actual expenditures.

Schedule

The project remains on schedule for a commercial operation date of May 25, 2005. Refer to the attachment for detailed information on Project milestones.

Finance

No Project A refinancing is planned at this time.

CEC Compliance

Excavation monitoring continues pursuant to Conditions of Certification. Monthly reports are being made as required by the CEC.  No violations of conditions have occurred.

Engineering, Procurement and Construction Activities since last Project Director�s Report of February 16, 2004.

Transmission

Facilities Agreement. Navigant has persuaded LA to agree to the correct percentages for the Project�s contribution to short circuit duty. The Agreement will require a provision that allows Magnolia to operate whether or not the work on the LA system is performed.

Transmission Study Project. Magnolia participants are being polled to determine their level of interest in the Transmission Study.  Personal Services Agreements will outline scopes of service on legal and regulatory issues associated with an interconnection with Southern California Edison. 

Scheduled Services. Glendale will need two reactors at Western to fulfill its obligations for scheduled services. Delivery time for reactors is about 4 months for standard orders. Don Allen is reviewing the primary agreements to determine whether Glendale�s agreements allow netting. A review of Cerritos� participation in the agreements is also being conducted.  

Coordinating Committee Action at its Meeting on February 19, 2004  

• Approved Operating Practices and Procedures - Version 1, February 19, 2004

• Approved Amendment No. 1 to the Burbank Interconnection Agreement.

Project Manager�s (Project Director�s) Actions Since Last Project Director�s Report of February 16  

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

• Authorized $308,505 for Kvaerner to complete the third floor addition and upgrades of the Service and Control Building, including design engineering, materials and installation.

• Items to be approved at Project Coordination meeting on March 12

Key Milestones and Anticipated Significant Activities For Next 30 Days

Power Supply Capital Projects

• SCADA/EMS

Two Remote Terminal Units (RTU) have been installed at the new Hollywood Way station.  One RTU serves the 34.5 kV side and the other for the 12 kV side of the station.  Testing on the 34.5 kV RTU has been completed by ABB and BWP. Testing on the 12 kV one is about 75 percent complete. Development of the new Hollywood Way Station displays, annunciator display, and RTU data base has been completed.

Because of the need to transfer feeders from the old Hollywood Way Distributing Station to the new one, the Scipar SCADA must be kept operational until June 30.

Delivery of the Emergency Back-up Server has been set for early March. Finalization of advanced application software and network communications with selected users will then begin.  

The Scheduling and Transaction Management System (STMS) software is being implemented. The web-based OATI software, and integration with the Telvent SCADA system has been completed. On-site testing has begun and software acceptance testing has started with completion and energy scheduling on an operational basis using STMS expected by mid-March.

• Telecom

Engineering provided a proposal to MediaNet for fiber optic service connecting Disney CORE 914 Victory Blvd. to City of Los Angeles, LADWP Receiving Station �E� in North Hollywood.

Engineering provided a proposal to Disney to connect Team Disney, Disney Channel and Disney Tower facilities redundantly to BWP fiber optic ring.

Engineering provided a proposal to Warner Brothers to connect Warner Building 157 redundantly to all their other facilities in the City of Burbank.

Field personnel completed a fiber optic job for the new Hollywood Way MUX connection from old Hollywood Way to Alameda Station.

• BWP Administration Building Remodel

The status of Burbank Water and Power�s Administration Building remodel remains on hold pending design changes, plan revisions and final approval.

• 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 all work except some final paving. The cable is on order and is expected to be delivered in the next 2 to 4 weeks.

Since July 1, 2003, a total of one hundred thirty six replacements/installations have been issued to the field, with thirty four replacements issued in February. Sixty three poles have been replaced in this fiscal year. Construction of a 22-pole line rebuild was started in January in the area between Lincoln and Keystone Streets north of Kenneth Road.

Since July 1, 2003, fourteen pad mounted customer stations have been engineered, two of which was engineered in February. Since July, there have been eight pad mounted customer stations issued to the field and ten pad mounted customer stations have been energized.

Primary service with two pad mounted switches for Senior Aerospace were energized in January.

Underground work to provide the new St. Joseph Providence Hospital building and the Burbank Medical Plaza with service availability from two different 12 kV feeders each coming from a different distributing station has been completed. Service was energized in February.

The Bock Company has completed a primary underground portion of work providing service to the Administration Building water pump.

Since July 1, 2003, three series circuit conversions to low voltage have been completed and twenty one new streetlights have been installed. Three streetlight improvement and undergrounding projects have been issued and one has been completed. The design for the second phase of the Magnolia Boulevard Project between Pass Avenue and Buena Vista Street has been completed. The bid process is in progress.

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 sixty percent complete. Construction of the new off-ramp was completed on June 30, 2003. New Hollywood Way Station is almost completed and ready to be energized. The substation will be energized on March 1 and the remaining testing would be completed by March 8. The dedication ceremony of the substation is scheduled on March 30 at 10 a.m. and load transfers immediately after that to complete it by May 21. By June 30, 2004 most of the 34,500 volt system will be reconfigured to connect four or five lines from the 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. ABB has two design review meetings with staff and submitted the design for Chief Building Officer (CBO) approval in the first week of February 2004. The construction is expected to start by the end of March or early April. Most of the equipment is on order, or in manufacturing stage and should be delivered by July 31 and all work 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. The duct /manhole work is approximately 80 percent complete and only the last segment near Olive Switching Station is still in progress. Both riser poles north of Magnolia Bridge are completed along with cables to the first manholes at the north east corner of BWP Yard. This work is expected to be completed before MPP goes on-line.

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

A total of 1,175 remote meters have been installed; 687 were requested by the Customer Service Division, and 488 were meter change outs by the Line Crews or Test Shop.

Legislative Update:

Refer to the attached legislative reports.

RED:RAC:FCF:JWL:GLS:JLF

H:MARCH W&E OPERATIONS REPORT rev 2

Attachments

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