WATER UPDATE

Water Quality

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

• The Valley Pumping Plant (VPP) blend ratio for the month of August was 54% MWD to 46% BOU.

Financial and Operations Update

• The Water Cost Adjustment Charge (WCAC) account had a balance of $1,334,912 as of August 31, 2004. 

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

( ) = Unfavorable

* Excluding Power Plant sales

      ** Year-to-date actual: July actual and August budget

(A)       The Year-to-date operating expenses are lower than budgeted due to lower spending in professional services and special departmental supplies. In addition, the customer service cost allocation to the water division is lower than expected.

Fiscal Year 2004-05 preliminary Water Fund Financial Reserve balances as of August 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. EPA approval and the start of construction are anticipated in the beginning of November. 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 with the abandonment of the old main. The permanent pavement repair can now be accomplished.

• 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 remaining portion of the new main will be flushed and 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 near completion. The existing line is being displaced by the MPP project. Work had been temporarily suspended because of the compacted construction site. Completion is scheduled for September 2004.

• A 24-inch diameter valve on a major transmission main was replaced at the intersection of Niagara St. and Empire Ave.

• Construction began on a 12-inch water main replacement in Angeleno Ave. between San Fernando Blvd. and Third St. This project is related to the Olson and Cusumano developments on the old Police block. Completion is scheduled for September.

Legislative Update

• Refer to the attached legislative reports.

ELECTRIC UPDATE

Electric Reliability

• There was one outage during August 2004 involving the San Jose Distributing Station that resulted in the entire station (12 kV Feeders SJ-2, SJ-5, SJ-6, SJ-10, SJ-11, and SJ-14) being dropped for 27 minutes. While the Burbank-San Jose 234.5 kV line was out for a short maintenance outage, the remaining Town-San Jose 34.5 kV line tripped due to a pilot wire line relay malfunction at San Jose. This resulted in an interruption of service to 1,730 customers. The relay malfunction was traced to a loose connection on a panel at San Jose. As of August 31, 2004, the system wide average is 0.0355 outages per year, compared with an industry average of 1.2 outages per year. As of August 2004, the average service availability is 99.9988%, exceeding the City goal of 99.99%. The average length is 30.4 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:

Financial and Operations Update

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

 ( ) = Unfavorable

Year-to-date actual: July actual and August budget

(A)       The actual NEL MWh is lower than budget due to cooler than average temperatures in July and August.

(B)       The actual MWh sales differ from budget due to timing of customer billing.

Local Generation Operations Update

Unit Statue

• Olive 1 is in hot-standby.  

• 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 August was 76,200 kWh compared to the goal of 84,000 kWh. The year-to-date actual hydro production is 152,000 kWh compared to the goal of 165,000 kWh.

August 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 Decatherms 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 August 31, 2004.

Schedule

The project remains on schedule for a commercial operation date of May 25, 2006.  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 continues to make the advanced software applications operational on the Telvent SCADA/EMS.

During August, BWP took delivery of our SCADA web-server from Telvent. Working with Telvent and  IT, BWP staff installed the web server and successfully tested it on the PC network at SCADA.  In early September, access to key SCADA screens will be provided to selected users on the BWP PC network. Access to the web-server over the local PC intranet will provide real-time power system data to key BWP personnel just by using their browser. Final invoicing and payment should be completed by November.

The OATI Scheduling and Transaction Management System (STMS) software acceptance testing was suspended during August. A decision was made not to continue implementing the OATI Web Trader software. It has not proven suitable for BWP�s energy trading needs.

Initial meetings were held regarding the implementation of the Siemens New Energy Scheduling software for MPP. New Energy provided a system implementation plan. BWP will explore expanding New Energy�s role to also provide effective transaction scheduling software instead of implementing the OATI Web Trader for BWP Energy Trading operations.

• Telecom

Engineering provided a proposal for Thomson Net to connect 2233 N. Ontario to Glendale Water and Power at Airway Station.

Engineering provided a proposal for Thomson Net to connect 2233 N. Ontario to LADWP Receiving Station �E�.

Engineering provided a proposal to connect Qwest at 3015 Winona Ave. to West Olive Plaza at 3601 W. Olive Ave.

Engineering provided a proposal to connect Warner Building 157 to Warner Ranch 3701 Oak St.

Field personnel completed a fiber optic job at John Burroughs High School to provide a cable connection between the main campus and the modular buildings located on Parish St.

Engineering released and BWP field personnel completed a fiber optic job to provide fiber connectivity between Olive, Western and Capon Stations for the 69 kV relays.

• BWP Administration Building Remodel, Phase III Interior Remodel

Executive management approved the final �all interior design� which included flooring, finish plans, elevations, colors, furniture and material concepts. These design elements will now be incorporated into the construction documents.

• 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.

Since July, forty eight power poles have been replaced, with nine poles replaced in August. BWP Electrical Engineering continues to design a pole line rebuild in the area between Clybourn and Pass Aves. north of Verdugo Ave. In August, thirty two pole replacements have been engineered. 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.

Since July, three pad mounted customer stations were engineered and issued to the field and; three pad mounted transformers have 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. has completed the installation of streetlight conduits. The streetlight crew is installing underground conductors and adapters, which will serve as power sources for the Magnolia Park street decorations.

Since July, thirteen additional streetlights (including six pole-mounted lights) have been engineered in response to requests from residents, with seven lights installed.

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.

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 80% complete.  

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 was delivered by the end of August and the Olive-Lincoln cable #1 and #2 has been pulled.

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 was shipped on August 28, 2004. Some of this cable has arrived with the balance to arrive on September 3.   

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. The Olive-Lincoln #2 breaker was replaced and is currently under testing. The B-3 bank breaker position will start on September 9.

BWP Electrical Engineering has completed the design for the new underground ducts installation along Verdugo Ave. from Kenwood to California St. Bock Co. is expected to complete this work by September 17. The underground duct work at Verdugo Ave. will start on September 20 and will be completed by October 29, 2004.

A total of 96 remote meters were installed in August; 43 were requested by the Customer Service Division, and 53 were meter change-outs performed by the Line Crews or Test Shop.

• Customer Service

Customer Service has decided to hold off on imposing the 1.5% late fee on all unpaid municipal service bills approved by the City Council last year. Although the fee was made to be effective on July 1, 2004, staff believes more time is needed to make sure all issues related to transitioning to the new billing system are resolved before the late fee is imposed. Thus, the new effective date is January 1, 2005.

BWP is pleased to offer EnerLink.net to Burbank�s 100 largest customers. EnerLink.net is a free on-line service that provides valuable information related to their electricity usage and utility bills. Large customers can now access graphics of meter data, comparison of usage across different time periods, and analysis of how their organization is using energy. Customer Service will be hosting training sessions to acquaint customers with this new service and its features.

On April 1, 2004, Customer Service has begun accepting credit card payment through Official Payments Corporation as the third party administrator. As of August 2004, credit card usage is up to 400 transactions per month. By September 10, electronic checks will be accepted through Official Payments Corporation.

The Customer Service team kicked into high gear in preparing a targeted fundraising effort in September. Previously known as the NOEL Program, Project Share continues to solicit donations for Burbank residents temporarily falling onto hard times. Project Share�s theme is �Helping Hands�Helping People.� During September, when a customer contributes in person, they�ll be given a hand-shaped cutout, which can be personalized and then prominently displayed on a large board in BWP�s lobby. Staff will also be seeking recurring donation commitments to be added to the customer�s monthly bills. The Customer Service Division has set a goal to raise $5,000 and is confident to meet the overall challenge for this worthwhile cause.

On August 31, the second residential solar photovoltaic (PV) system in Burbank was cleared for operation. The PV system is expected to produce between 350 and 450 kWhs per month, saving the homeowner about $700 per year. The homeowner is the first participant in BWP�s Solar Support program and will receive a $6,000 rebate to apply toward the purchase price. The homeowner stated that installing the system provides the opportunity to give something back to the community and to provide a good example of the use of renewable resources.

BWP was one of six gold level sponsors of the Starlight Bowl this season. A BWP banner was up at the front of the stage each of the seven evenings and the BWP logo was in all event ads. We were also invited by the Park, Recreation and Community Services Department to be the intermission sponsor for the performance on August 15. BWP gave away 3,000 flashing stars to be used as an additional safety tool for evening walks, bike rides, etc. During the intermission, Jeanette Meyer went on stage and did a true/false trivia quiz with six contestants pulled from the audience.

Legislative Update:

Refer to the attached legislative reports.

RED:RAC:FCF:JWL:GLS:JLF

H:SEPTEMBER W&E OPERATIONS REPORT

Attachments

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