WATER UPDATE

Water Quality

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

• The Valley Pumping Plant blend ratio for the month of March was 54% MWD to 46% BOU.

Financial and Operations Update

• Potable water sales for March were 581,127 billing units. This was 4% lower than the budgeted sales. Revenue for March was $ 1,141,228. 

• Reclaimed water sales for March were 5,446 billing units. Revenue for March was $7,479, not including Power Plant sales. 

• The Water Cost Adjustment Charge (WCAC) account had a balance of $ 1,562,389 as of March 31, 2004. 

• Fiscal Year 2003-04 Year-To-Date preliminary Water Fund Financial Results as of March 31, 2004:

•  

( ) = Unfavorable

• Fiscal Year 2003-04 preliminary Water Fund Financial Reserve balances as of March 31, 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 May. Fabrication of the new screens and construction will follow in June through August 2004. The Treatment Plant will experience reduced operating capacity during construction, therefore, an increased need for purchased water.

Capital Projects

• Replacement of interior joints at Reservoir No. 2 is complete. As a result of the leak testing, additional work by the contractor has been required. The contractor has completed remedial work on localized sections of the joint seals. The reservoir has been disinfected and was placed back in service in early April 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 is scheduled to be completed in early May 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 mid-May 2004. 

• Construction of a 12-inch distribution for 200 l.f. in Empire at Naomi St. was completed in the first week of March.  

• A 20-inch transmission line was cut, capped and removed to facilitate unloading of railcars for the MPP project.  The transmission main will be reinstalled after the MPP project is complete. 

Legislative Update

• Refer to the attached legislative reports.

ELECTRIC UPDATE

Electric Reliability

• There were no outages during March 2004. As of March 31, 2004, the systemwide average is 0.2067 outages per year, compared with an industry average of 1.2 outages per year. Even though no outages occurred, small variations in this index occur due to monthly changes in the number of customer meters. As of March 2004, the average service availability is 99.9964%, 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 March 2004 for Fiscal Year 2003-04 as compared to Fiscal Year 2002-03:

Financial and Operations Update

• Year-to-date MWh sales remain slightly above budget due to warmer average temperatures during the summer months and cooler average temperatures during the winter months.  

• Wholesale gross margins for the month of March were comparable to budget and the YTD margins were higher than budget 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 March 31, 2004:

( ) = Unfavorable

(1) YTD Retail Revenue accrual is $ 1.3 million.

Local Generation Operations Update

Unit Status

• Olive 1 is in hot-standby and available for service.

• Olive 2 is down for boiler inspection.  This unit is expected to be available for service on May 12, 2004.  

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

• 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 pre-construction stage. The Micro-Turbines will not be running until the summer of 2004. 

• Hydro Energy Production for March was 71,000 kWh compared to the 58,000 kWh goal. Year-to-date kWh production of 637,100 was above the kWh goal of 525,000.

March 2004 Unit Data

Power Supply

• Restructuring of the Gas Industry in Southern California

The California Public Utility Commission�s (CPUC) Commissioners have approved a revised alternate of Judge DeUlloa�s Draft Decision by postponing implementation of the restructuring of SoCalGas Company�s intrastate pipeline system until a decision is made on SoCalGas Gas Capacity Rulemaking (R.04-01-025), which is expected this summer. There may be concerns regarding the decision because certain elements of the Comprehensive Settlement conflict with many proposals in the Gas Capacity Rulemaking. Due to the incompatibility of the two proposals, it is not clear how the plan will be implemented.

• Sylmar Converter Station Replacement Project

The engineering and fabrication work associated with this project continues on budget with a scheduled date of 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 Coordinating Committee meetings.

Safety

Through March, Kvaerner has worked 155,586 man-hours with no lost time cases and two recordable cases.

Budget

Refer to the attachment for detailed information on actual expenditures for the period ending March 31, 2004.

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.  The Magnolia Power Project Finance Committee has received eight refunding proposals since March 2004.  The Magnolia Power Project Finance Committee has scheduled a meeting on May 4, 2004 to discuss these proposals.

CEC Compliance

Excavation monitoring continues pursuant to Conditions of Certification. Monthly reports are being made as required by the California Energy Commission (CEC).  No violations of conditions have occurred. CEC staff visited the site on April 12.

Engineering, Procurement and Construction Activities since last Project Director�s Report of March 15, 2004.

Transmission

Facilities Agreement.  Navigant has persuaded L.A. 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 work on the L.A. 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 the reactors is about four 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 March 18

• Authorized Adjacent Site Option Notice

• Approved Amendment No. 2 to the Site Lease and Services Agreement

• Consented to assignment of the Engineering Procurement and Construction Contract

Project Manager�s  Actions Since Last Project Director�s Report of March 15  

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

• Authorized ($43,207) deducted from Kvaerner to delete the combustion turbine generators and steam turbine generator transformers heavy haul and reserve transformer off-load and rough set.

• Authorized $478,000 for Kvaerner to provide a larger foundation for the steam turbine generator.

• Revised the Personal Services Agreement with John Feeney for on-going consulting services.

• Authorized a Personal Services Agreement with John Gotham to provide services to integrate the software and hardware of the participants, and the Operating Agent to provide for accurate and efficient scheduling and accounting of energy and capacity and usage of natural gas.

• Authorized Kvaerner to transfer the heat recovery steam generator construction cost from subcontract to direct hire; there is no net cost to the Project.

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 by ABB. One RTU serves the 34.5 kV side and the other serves the 12 kV side of the station. Testing on both 12 kV and 34.5 kV RTU�s has been completed by ABB and BWP. Development of the new Hollywood Way Station displays, annunciator display, and RTU database has been completed. Testing on the 12 kV RTU is nearly complete. The first feeder carrying load transferred from the old Hollywood Way Station has been energized and tested. The transformer tap changer indication has been tested.

Because feeders from the old Hollywood Way Distributing Station will be transferred to the new station one at a time, the Scipar SCADA must be kept operational until June 30.

.

Telvent has delayed delivery of the Emergency Back-Up Server until April 19. Finalization of advanced application software and network communications with selected users will then follow.  

The OATI Scheduling and Transaction Management System (STMS) software acceptance testing is still in progress. During March, automatic generation control of Lake 1, using the Telvent ITS software driven area control error signals derived from the OATI scheduling software, was successfully tested. Net interchange with LADWP was held to within 1 MW for several hours.

An initial meeting was held with LADWP to implement an Inter-Control Center Communications Protocol (ICCP) data link between BWP�s Telvent SCADA/Energy Management System (EMS) and their Energy Control Center. Real-time system load, generation, and reserves will be provided.   

�        Telecom

Engineering provided a proposal to Media Net for fiber optic service connecting Dakota Digital, 900 W. Alameda Ave., to the City of Los Angeles, LADWP Receiving Station �E� in North Hollywood.

Engineering provided a proposal to Disney to connect the following facilities:

1. Team Disney, 500 S. Buena Vista St. to Disney Channel 3800 W. Alameda Ave.

2. Team Disney, 500 S. Buena Vista St. to Ascent 2813 W. Alameda Ave.

3. Disney CORE, 914 N. Victory Blvd. to 2233 N. Ontario St.

4. Team Disney, 500 S. Buena Vista St. to KABC-TV 500 Circle Seven Dr.

Engineering provided a proposal to the City IT Department for fiber optic service connecting the North West Library to City Hall through SCADA.

Engineering released a job order to the Operations Section to provide an alternate link for Onfiber to connect Qwest Cyber Center to the Magnolia Basement. This job is related to the Hollywood Way relocation project.

Field personnel completed a fiber optic job to reroute the following Disney fiber optic links, going to the City of Glendale through the Flower Station:

1. D6-Team Disney, 500 S. Buena Vista St. to Disney 640 Paula in Glendale.

2. D22-Team Disney, 500 S. Buena Vista St. to Disney CORE 914 Victory Blvd.

3. D21-Disney Frank Wells, 500 Buena Vista St. to Disney 811 Sonora in Glendale.

Engineering released a job order to the Operations Section to disconnect the following Disney facilities:

1. D13-Disney Frank Wells, 500 Buena Vista St. to Disney 620 Paula in Glendale.

2. D20-Disney Feature Animation South to Disney 640 Paula in Glendale.

Field personnel completed a fiber optic job for additional fiber strands to connect Warner Brother�s Building 157 to the Pinnacle Building, 3400 W. Olive Ave.

• BWP Administration Building Remodel

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

• Electrical Distribution

Construction work for extending the ducts and manholes along Hollywood Way from the Warner Ranch Gate to Oak St., along Oak St. to California St., along California St. from Oak St. to Alameda Ave., and along Avon St. from Oak St. to the alley north of Alameda is complete. Perry C. Thomas, the private contractor for the 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 two weeks.

Since July 1, 2003, a total of one hundred forty-five replacements/installations have been issued to the field, with nine replacements issued in March. Ninety-one poles have been replaced in this fiscal year. Construction of a thirty-pole line rebuild was started in March in the area between Clybourn and Pass Aves. south of National Ave.

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

Primary service for the second phase of John Burroughs High School has been energized.

Since July 1, 2003, four 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 two have been completed. The design for the second phase of the Magnolia Boulevard Project between Pass Ave. and Buena Vista St. has been completed. The BWP Board awarded the bid for the substructure work to Steiny and Company, Inc. on April 1, 2004.

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. The new Hollywood Way Station was completed and energized on March 1, and the remaining testing was completed by March 8. The dedication ceremony took place on March 30 and the load transfers are in progress and expected to be completed 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.

The Southern California Public Power Authority (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 had 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 started at the end of March as scheduled. Most of the equipment is on order or in manufacturing stage, and should be delivered by July 31. All work should 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. The duct/manhole work is approximately ninety-five percent complete and the remaining five percent near the Olive Switching Station is still in progress. Both riser poles north of the Magnolia Bridge are completed along with cables to the first manholes at the northeast corner of the 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. Almost thirty percent of the work is completed.

A total of 1,418 remote meters have been installed; 768 were requested by the Customer Service Division, and 650 were meter change outs performed by the Line Crews or Test Shop.

• Customer Service

CIS Project Overview:

• 78 deliverables, 71 completed, or 91% complete.

• Indus implementation budget, $2,261,012, expended $1,904,686, or 84%.

• Total project budget, $4,678,300, expended $3,709,841, or 79%.

• Supplemental technical implementation budget, $1,000,000, expended $457,693, or 46%.

• Went live ahead of schedule.

Testing & Documentation Sign-Off:

• All business processes have been thoroughly tested.

• Sign-offs that the processes work as expected are as follows:

o          Electric Services - 88.24%

o          Water Services � 94.44%

o          Customer Service � 85.14%

o          Public Works � 100%

• The processes which are still outstanding will not impact our go-live schedule or billing accuracy

Mock Go-Live Weekends:

• Staff conducted mock go-lives during two weekends:  February 28-29, 2004 and March 19-20, 2004. 

• Over the first weekend, staff spent a good deal of time inputting items needed to be manually entered into the new system after the final conversion. Staff was able to save this information onto excel spreadsheets for transference to the new system. This will be a big time saver during the actual go-live event.

• To minimize Sunday overtime, the second mock weekend was conducted on a Friday and Saturday.

• In general, both mock go-lives were very successful. The time allowed the team to fix a few items that arose over the weekend and to nail down the timing of activities for the actual go-live event.

Bill Print:

• The OCE printer has been programmed to handle BWP�s bills and letters.

• After much discussion and work, the OCR scan line, which allows us to get postage discounts, has been programmed for both the remittance processor and the cashiering system.

• The bill print vendor, Group 1, had a reduction in force on March 15, 2004. The project manager and programmer working on the CIS project were two of the casualties. After a few discussions, Group 1 sent two people to Burbank to focus on finishing the work to get BWP�s bills printed properly.

• Group 1 has made more progress and customer service still expects to go forward as planned with cut-over to the new system on April 8 or 9, 2004.

Reports:

• Not all legacy reports were recreated, but rather reports were developed upon request. All reports requested by users to date have been created by IT in either Crystal reports or Oracle reports, depending on the data requirements.

• All Banner reports will be available on-line.

• IT staff has created a webpage with all billing system reports in either stock Banner reports or custom reports.

• To access the webpage, Banner users have a small link called �BWP Customer Reports� where reports are listed by name and displayed in PDF format.  The user can either save it on their local drive or print it.

Credit Cards:

• Beginning April 5, 2004, BWP will accept credit cards over the internet and by phone through Official Payments Corp.

• Customers may access this service in three ways:

o       By using a phone in BWP�s lobby which links directly to Official Payments.

o       By calling 818-238-3700 and select the �pay by credit card� option.

o       By paying using the link from BWP to the Official Payments website.

• Customers will be charged a service fee to use the Official Payments. The fee begins at $4.95 and increases as the amount of the transaction increases.

Customer Access To Account Information:

• A web server was purchased to allow all customers access to their account information over the internet.

• The server should be in place and operational by the end of May.

• Our larger customers will also use this service to view detailed rate information which will no longer be available on their bill due to limitations of the Banner products.

End Users:

• IT is working to ensure that all end users have the Banner icon on their desktop. Customer Service is currently working to provide access to more people.

• Most users have been trained on the new system, except for the Fire Dept., Police Dept., and License/Code, and Building. These departments will be trained by the end of April.

Go-Live:

• BWP met with IT to discuss close down procedures for the legacy system which did its final billing and month end reports on March 31.  Discussions also included a fall back plan on the outside chance that we could not go live as planned.

• Cut over activities were Thursday, April 1 and Friday, April 2, therefore, neither Banner nor legacy were available for normal daily transactions.  These transactions were documented manually and then inputted into Banner on Saturday, April 3.

• Moving the cut over from the weekend to Thursday and Friday allowed us to send some meter reads and all payment files to Banner on Thursday night so we could produce and verify actual Banner bills before we accepted the system.  We did the same thing Friday night and then checked bills again on Saturday.

• Go live was April 3, 2004.

Legislative Update:

Refer to the attached legislative reports.

RED:RAC:FCF:JWL:GLS:JLF

H:APRIL W&E OPERATIONS REPORT

Attachments

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