WATER UPDATE

Water Quality

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

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

Financial and Operations Update

• Potable water sales for April were 763,767 billing units. This was 16% above the budgeted sales. Revenue for April was $ 1,274,519. 

• Reclaimed water sales for April were 14,110 billing units. Revenue for April was $18,624, not including Power Plant sales. 

• The Water Cost Adjustment Charge (WCAC) account had a balance of $ 1,682,139 as of April 30, 2004. 

• Fiscal Year 2003-04 Year-To-Date preliminary Water Fund Financial Results as of April 30, 2004:

( ) = Unfavorable

• Fiscal Year 2003-04 preliminary Water Fund Financial Reserve balances as of April 30, 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 from the Metropolitan Water District (MWD).

Capital Projects

• Replacement of the interior joints at Reservoir No. 2 is complete. As a result of the leak testing, additional work by the contractor was required. The contractor has completed remedial work on the 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 in South San Fernando Blvd. between Verdugo Ave. and Santa Anita Ave. began in April. This construction is related to the Senior Artist Colony project and was 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. Work has been temporarily suspended because of a congested construction site. Completion is scheduled for late June 2004.

Legislative Update

• Refer to the attached legislative reports.

ELECTRIC UPDATE

Electric Reliability

• There were four outages during April 2004. Two of these outages were one minute outages that were scheduled to correct equipment problems. As of April 30, 2004, the systemwide average is 0.2278 outages per year, compared with an industry average of 1.2 outages per year. As of April 2004, the average service availability is 99.9966%, exceeding the City goal of 99.99%. The average outage length is 64 minutes, compared with an industry average of 80 minutes.

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

Financial and Operations Update

• Year-to-date retail margins were higher than budget mainly due to cost savings from power contract negotiations and the IPP purchased power rebate.  

• Year-to-date wholesale gross 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 April 30, 2004:

( ) = Unfavorable

• Fiscal Year 2003-04 preliminary Power Fund Financial Reserve as of April 30, 2004 is summarized in the following table:

* Note: There is a payment of approximately $9 million for principal and interest on Fund 496 Bonds, which is due on June 1, 2004.

Local Generation Operations Update

Unit Status

• The natural gas supply to all generating units at BWP was shutdown on April 12, 2004 to facilitate the construction of a new metering station that will supply both the Magnolia Power Project and the existing BWP units. The shutdown was coordinated to occur with the retrofit of the Lake One�s SCR to minimize unit downtime. The construction of BWP�s gas lines was completed on May 3, 2004. This will allow the Olive 1 unit to be placed into hot standby. The boiler inspection of the Olive 2 was completed and this unit will be available by the end of May. Lake One went through flow testing and source testing during the week of May 17.    

• 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. This unit has been sold and is currently being dismantled.  

• 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 April was 76,300 kWh compared to the goal of 58,000 kWh. Year-to-date kWh production of 713,400 was above the kWh goal of 583,000.

March 2004 Unit Data

Power Supply

• Restructuring of the Gas Industry in Southern California

The California Public Utility Commission�s (CPUC) Commissioners approved a revised alternate of Judge DeUlloa�s Draft Decision by postponing the restructuring implementation of SoCalGas Company�s intrastate pipeline system until a decision is made on Phase I of the SoCalGas Gas Capacity Rulemaking (R.04-01-025), which is expected this summer.

The decision on April 1 was challenging because certain elements of the Comprehensive Settlement conflict with key ideas discussed in the Gas Capacity Rulemaking. Due to the incompatibility of the two proposals, it is not clear how the plan will be implemented. As of early May, many parties are working on a petition for modification to the CPUC asking them to postpone the implementation of the Comprehensive Settlement awaiting the outcome of the SoCalGas Rulemaking this summer.

• 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 198, 866 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 April 30, 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

The Magnolia Power Project Finance Committee reviewed refunding proposals on May 4. Each Finance Committee representative will discuss the refunding proposals with their respective General Managers.

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. A request for an Insignificant Change in the conditions concerning the transmission lines from the step-up transformers to the Olive Substation was approved by the CEC.

Engineering, Procurement and Construction Activities since last Project Director�s Report of April 12, 2004.

Transmission

Facilities Agreement.  The Agreement was executed by Los Angeles and Burbank regarding upgrades required on the LADWP system as a result of the Project.

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 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 April 15

• Approved Operating Budget for Fiscal Year 2004-05

• Approved Commissioning Budget

• Approved Semiannual reports dated April 1, 2004

Project Manager�s  Actions Since Last Project Director�s Report of April 12  

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

• Authorized $64,248 to Kvaerner to supply and install Bentley Nevada Vibration Monitoring System for the Boiler Feed Water Pumps. 

• Authorized $53,600 to Areva T&D to offload, transport and set four power transformers on their foundations.

• Authorized $7,265 to Alstom to provide services of a third party to test weld hardness of the heat recovery steam generator modules in Portugal.

• Authorized $27,000 to Alstom for the installation of observation ports in the heat recovery steam generator.

• Authorized $75,000 to Alstom to provide the design, materials and equipment for a chemical recirculation system for the heat recovery steam generator.

Key Milestones and Anticipated Significant Activities For Next 30 Days

Power Supply Capital Projects

• SCADA/EMS

Testing of the Remote Terminal Units (RTU) for the new Hollywood Way Station was completed and the station was fully implemented on the Telvent SCADA Energy Management System (EMS).

Transfer of all feeders from the old Hollywood Way Distributing Station to the new station was completed ahead of schedule, which allowed retirement of the old Scipar SCADA system on April 28.  All BWP stations are now fully operational on the Telvent SCADA EMS system.

Telvent delivered the Emergency Back-Up server as scheduled on April 19. Installation, and site acceptance was completed by Telvent and BWP staff. Advanced application software was also installed for testing by BWP. The web server software is being modified by Microsoft for improved security. As soon as the security enhancement is completed, the web server will be delivered and installed by Telvent. Implementation of network communications with selected users will then follow.

The OATI Scheduling and Transaction Management System (STMS) software acceptance testing is in progress. During April, work was focused on improving the responsiveness of the OATI software. It is estimated that the implementation is approximately 90% complete. This project is expected to be completed in June. It should be noted that BWP real-time energy traders have been using OATI STMS software continuously.    

• Telecom

Engineering provided a proposal to Ascent Media for fiber optic service connecting Ascent Media 2901 W. Alameda Ave. to the City of Los Angeles, LADWP Receiving Station �E� in North Hollywood.

Engineering provided a proposal to Ascent Media for fiber optic service connecting Ascent Media 2901 W. Alameda Ave. to 2130 Hollywood Way.

Engineering released a job order to the Operations Section to provide fiber optic service connecting the Northwest Library to City Hall through SCADA.

Engineering released a job order to the Operations Section to provide an alternate link for Capon Station to the New Hollywood Way Station Communication Room. This job is related to the Hollywood Way relocation project.

Engineering released a job order to the Operations Section to provide an alternate link for Modern VideoFilm to connect 4411 W. Olive to 1733 Flower St. This job is related to the Hollywood Way relocation project.

Engineering released a job order to the Operations Section to provide an alternate link for Warner Building 157 to Warner Ranch. This job is related to the Hollywood Way relocation project.

Engineering released a job order to the Operations Section to provide an alternate link for Warner Building 157 to RSE. This job is related to the Hollywood Way relocation project.

Engineering released a job order to the Operations Section to provide an alternate link for Media Net to connect Warner Ranch to RSE. This job is related to the Hollywood Way relocation project.

Engineering released a job order to the Operations Section to provide an alternate link for NBC Studios to RSE. This job is related to the Hollywood Way relocation project.

Engineering released a job order to the Operations Section to provide an alternate link for Capon Station to Olive Station relays. This job is related to the Hollywood Way relocation project.

Field personnel completed a fiber optic job 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 an alternate link for Disney to connect Disney Frank Well to Disney Sonora 811 Sonora in Glendale.

• 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 has completed construction of the underground ductwork. Underground cable has been delivered and field crew will start the installation.

Since July 1, 2003, a total of 154 pole replacements/installations have been issued to the field, with eleven replacements issued in April. A total of 121 poles have been replaced in this fiscal year. Construction of an eleven-pole line rebuild was started in April on Flower Street, east of Alameda Avenue. This work is done in conjunction with Feeders F-1 and F-5 primary risers replacements. Underground conduit work with feeders F-1 and F-5 is expected to start by the end of May.

Since July 1, 2003, seventeen pad mounted customer stations have been engineered, one of which was engineered in April. Since July, there have been ten pad mounted customer stations issued to the field and thirteen pad mounted customer stations have been energized.

Since July 1, 2003, four series circuit conversions to low voltage have been completed and twenty-five 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.

Construction of the new Hollywood Way Substation, and transfer of load from the old Hollywood Way Station, is 100% 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 were completed by April 30. By May 12, 2004 five lines are reconfigured to connect from the Capon Switching Station, which completes the work scheduled for this fiscal year.

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. The GIS equipment is manufactory tested and ready to be shipped. Delivery of all equipments are expected by June 30, 2004.  

Bock Co. has completed the installation of 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. 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.

69,000 volt underground cable and devices were ordered for making connection from MPP to Olive Switching station. The generator step-up (GSU) and other related power transformers are manufactured and tested and getting ready to be shipped.

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-five percent of the work is completed.

A total of 1,454 remote meters have been installed; 768 were requested by the Customer Service Division, and 686 were meter change outs performed by the Line Crews or Test Shop.

Legislative Update:

Refer to the attached legislative reports.

RED:RAC:FCF:JWL:GLS:JLF

H:MAY W&E OPERATIONS REPORT

Attachments

go to the top