WATER UPDATE

Water Quality

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

• The Valley Pumping Plant (VPP) blend ratio for the month of July was 57% MWD to 43% BOU.

• Financial and Operations Update

• The Water Cost Adjustment Charge (WCAC) account had a balance of $1,322,612 as of July 31, 2004. 

• Fiscal Year 2004-05 Year-To-Date preliminary Water Fund Financial Results as of July 31, 2004:

( ) = Unfavorable

* Excluding Power Plant sales.

** Source: Budget 2004-05.

Fiscal Year 2004-05 preliminary Water Fund Financial Reserve balances as of July 31, 2004 are summarized in the following table:

Environmental Protection Agency (EPA)

• Calgon Corporation is working on the alternative design as requested by EPA. Construction and fabrication of the new screens will follow the EPA�s approval, which is the controlling feature in proceeding with the project. Construction is projected to take three months once it is approved. The Treatment Plant will experience reduced operating capacity during construction, therefore, there will be an increased need for purchased water from the Metropolitan Water District (MWD).

Capital Projects

• 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 May 2004. Tie-overs of existing services to the new main are completed. The old main will be cut out of the system and abandoned during the first week of July.  

• Construction of the 12-inch reclaimed water main between the Empire Center and Chestnut St. along Mariposa St. and Griffith Park Dr. is completed. Costco has been connected to the reclaimed water for irrigation. The Empire Center will receive reclaimed water in September. 

• Construction of a new reclaimed water supply line for BWP�s 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 the end of August 2004.

Legislative Update

• Refer to the attached legislative reports.

ELECTRIC UPDATE 

Electric Reliability

• There were two outages during July 2004 involving Feeders N-15, and S-5. The first resulted from a phase imbalance due to high air conditioning load. The other was caused by underground cable failures. These outages resulted in a total of 60 customers being out of service for up to 2 hours and 26 minutes. As of July 31, 2004, the systemwide average is 0.0012 outages per year, compared with an industry average of 1.2 outages per year. As of July 2004, the average service availability is 99.9996%, exceeding the City goal of 99.99%. The average length is 128.4 minutes, compared with an industry average of 80 minutes. The following table shows the systemwide reliability statistics for Fiscal Year 2004-05 as compared to Fiscal Year 2003-04:

The following table shows the systemwide reliability statistics for Fiscal Year 2004-05 as compared to Fiscal Year 2003-04:

Financial and Operations Update

• Fiscal Year 2004-05 year-to-date preliminary Power Financial Results as of July 31, 2004:

 ( ) = Unfavorable

* Actual MWh sales differ from budget MWh due to timing of customer billing.        

** Source: Budget 2004-05.

• Fiscal Year 2004-05 preliminary Power Fund Financial Reserve as of July 31, 2004 is summarized in the following table:

Local Generation Operations Update

Unit Status

• Olive 1 is on-line.

• Olive 2 is on-line.

• Olive 4 is available for emergency service.

• Lake One is available for service.

• The Micro-Turbine Project has been awarded to SCS Energy. The project is now in the construction phase. The micro-turbines will not be running until January 2005.

• Hydro Energy Production for July was 75,800 kWh compared to the goal of 71,000 kWh.

July 2004 Unit Data

Power Supply

• FERC Data Requests and Refund Calculation

There were no significant developments regarding this matter in June. In May 2004, FERC decided that it will no longer work directly with BWP on the $6 million refunding issues. BWP must seek refunds through Sempra Energy Trading. BWP has contacted Sempra Energy Trading and is currently working on a mutually acceptable resolution to recover costs through Sempra.   

• Sylmar Converter Station Replacement Project

Engineering and fabrication work associated with this project continues on budget with a scheduled date of late 2004.  

• SCPPA Natural Gas Reserve Procurement

SCPPA members interested in procuring natural gas reserves in the ground have received their Council�s approvals to proceed. BWP has initially committed to acquiring 1,000 Dekatherms per day (Dth/day) through the program, which represents approximately 5% of future expected annual requirements. The viability to proceed is expected this fall.

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 July, Kvaerner has worked 340,231 man-hours with no lost time cases and three recordable cases.

Budget

Refer to the attachment for detailed information on actual expenditures for the period ending July 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

The Magnolia Power Project Finance Committee continues to review refunding proposals and has taken no action regarding the refunding of Project A bonds.

California Energy Commission (CEC) Compliance

No violations of conditions have occurred.

Engineering, Procurement and Construction Activities since last Project Director�s Report of July 12

Transmission

• Southern California Edison (SCE) Tax Issues on Facilities Agreement. Discussions are continuing with SCE management to determine how SCE routinely handles tax issues on facilities improvements with municipal entities.

• Transmission Legal and Regulatory Study. Legal counsel and Black and Veatch have identified an initial set of issues to be addressed. The list of issues will be refined for further study.

• Scheduled Services. A draft agreement has been presented to the parties for negotiation.

Coordinating Committee Action

There was no meeting held in July.

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

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

• Authorized $282,456 to Kvaerner for multiple architectural modifications needed to tie the new Service and Control Building with the existing building.

• Authorized $62,041 to Kvaerner to provide additional metering for the existing relay panels.

• Approved Amendment to the EPC Contract for performance guarantees to account for the addition of the ZLD system.

Key Milestones and Anticipated Significant Activities For Next 30 Days

Power Supply Capital Projects

• SCADA/EMS

Work began to make the advanced software applications operational on the Telvent SCADA.

The OATI Scheduling and Transaction Management System (STMS) software acceptance testing continued in July. The bandwidth of the internet connection between OATI and BWP was doubled in an attempt to improve the responsiveness of the OATI software. Testing did not show a marked improvement. OATI is still working to provide net schedules on transmission lines. BWP has informed OATI that resolving the speed issue has reached a critical point that needs quick resolution.

• Telecom

Engineering provided a proposal to New Wave Entertainment at 2660 W. Olive Ave. and Warner at 3400 Riverside Dr.

Field personnel completed a fiber optic job to connect Warner Building 157 at 4000 Warner Blvd. to Warner Ranch, 3701 Oak St.

Field personnel completed a fiber optic job to disconnect a temporary station multiplexer and 60 kV relay connections.

Field personnel completed a fiber optic job to reconnect Disney Feature Animation South to Disney, 640 Paula Ave.

• BWP Administration Building Remodel, Phase III Interior Remodel

The first iteration of programming for the individual offices and workstation furniture was completed. Isometrics are being developed for review before being finalized. Chairs for all personnel were selected and will be ordered shortly.

• Electrical Distribution

Construction work for extending the ducts and manholes along Oak St. from California St. to Buena Vista and along Buena Vista to Edison Rd. is completed. Underground cable has been delivered and the cable installation is approximately 90% complete.

In July, thirty nine power poles were replaced, including the pole line in the Media District. BWP Electrical Engineering is designing a pole line rebuild in the area between Clybourn and Pass Aves. north of Verdugo Ave. In addition to pole replacements, a large area in the Media District is being rebuilt to 12 kV standards in preparation for the future transfer of some Alameda feeder loads to the new Hollywood Way Station.

In July, two pad mounted customer stations were engineered and issued to the field; three pad mounted transformers for Burbank Village Walk and relocation/upgrade of the pad-mounted transformer feeding the Burbank City Employees Federal Credit Union. Service to the second phase of Burbank High School has been energized.

Construction is in progress for the second phase of the streetlight system undergrounding on Magnolia Blvd. between Pass Ave. and Buena Vista St. The private contractor, Steiny and Company, Inc. is installing streetlight conduits. The work is scheduled to be completed in August.

Replacement of the remaining oil switches with pole mounted airbreak switches has been issued to the field with the exception of one, Pacific-16 distributing switch, which will be removed during the unloading of this feeder scheduled for November 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 Hollywood Way Substation 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 were reconfigured to connect from the Capon Switching Station, which completes the work scheduled for this fiscal year. The old Hollywood Way Station is completely de-energized and the equipment is still on the pads ready to be removed when needed. The Community Development Department (CDD) Transportation and BWP are working on an interim landscaping plan for the front of the Hollywood Way and Alameda Substations due to the delay in construction of the SR-134 on-ramp project by Caltrans. The interim landscape plan would be implemented very soon.

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. Construction started at the end of March as scheduled. The GIS equipment is manufactured, tested, and ready to be shipped. The GIS equipment, control building, and all protection and controls arrived on site in June 2004. All GIS and control/protection equipment was set on the pad and assembly work is in progress.

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. Cable and all other related materials are ordered. This work is expected to be completed before MPP goes on-line. The 69 kV cable for the Olive-Lincoln lines will be shipped on August 23, 2004.

The 69,000 volt underground cable and devices were ordered for making the connections from MPP to the Olive Switching Station. The GSU and other related power transformers were manufactured, tested, and shipped from Turkey in early June 2004. These transformers arrived on the site and set on the pads. The 69 kV cable delivery will be shipped on August 28, 2004.   

BWP staff is working on the Olive Switching Station retrofit by upgrading circuit breakers, busses and other equipment. This upgrade is needed for the Magnolia Power Project. Approximately 40% of the work is completed.

BWP Electrical Engineering has completed the design for the new underground ducts installation along Verdugo Ave. from Kenwood to California St.  Bock Co. started work on this project on July 12, 2004.

BWP Electrical Engineering is working with the Community Development Department (CDD) and Public Works Department to install ducts for the underground distribution system in the South San Fernando Redevelopment area as a part of streetscape work if funding is approved.

A total of 1,823 remote meters were installed during Fiscal Year 2003-04; 851 were requested by the Customer Service Division, and 972 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:JULY W&E OPERATIONS REPORT

Attachments

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