WATER UPDATE

Water Quality

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

• The Valley Pumping Plant (VPP) blend ratio for the month of April was 60% MWD to 40% BOU.

Financial and Operations Update

• The Water Cost Adjustment Charge (WCAC) account had a balance of $1,246,020 as of April 30, 2005.

• Fiscal Year 2004-05 Year-To-Date Water Fund Financial Results as of April 30, 2005:

( ) = Unfavorable

* Includes Power Plant Sales, Commercial and Industrial Reclaimed Sales

** Year-to-date actual: July�04-March�05 actual and April�05 budget

(A)       Revenues are reduced by the amount of the WCAC over-collection ($430K).

(B)       The BOU has experienced reduced operating capacity due to carbon screen failures, MWD shutdown, and water production problems associated with the persistent low water table and two of the major wells down for maintenance. Thus, there was an increased need for purchased water from the Metropolitan Water District (MWD). The BOU has an average of 56% of operating capacity compared to 75% of budgeted capacity.

(C)       Additional income from closing of old work for others projects.

(D)       Additional income from closing of old AIC projects.

Fiscal Year 2004-05 Water Fund Financial Reserve balances as of April 30, 2005 are summarized in the following table:

BOU Water Production

• Repairs to the carbon retention screen in the third filter of one train of the Vapor Phase Granulated Activate Carbon (VPGAC) filters is complete and repair of the damaged screen of the third filter vessel in the other VPGAC train was expected to be completed by the end of May. Treatment capacity through the VPGAC is now only restricted to half capacity (4,500 gpm) when the second VPGAC train is off line to regenerate the carbon. This is two days per week. The full continuous VPGAC Treatment capacity will be restored in May. Continued laboratory testing of the treated air stream after the VPGAC carbon change in March confirmed compliance with the operating permit.  

• The BOU well field has had water production problems due to the persistent low water table and two major wells down for maintenance. New pumps and motors have been installed in the two major wells. Well field production flow is now 6,000 and should climb to 7,000 � 7,500 gpm in May.  Achieving a 9,000 production capacity is an ongoing effort and is being addressed by the Well Field Performance Attainment Study.  

Environmental Protection Agency (EPA)

• Calgon Corporation is working on the alternative design requested by the 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 is not expected before June. Construction will begin after EPA approval and the order/receipt of long lead materials. The Treatment Plant will experience reduced operating capacity during project construction. Consequently, there will be an increased need for purchased water from the Metropolitan Water District (MWD).

Capital Projects

• Construction of a new 12-inch reclaimed water main in San Fernando Blvd. from Santa Anita Ave. to Valencia Ave. began in December. Once this water main is completed, the existing 8-inch main will be converted for reclaimed water use. This work is being done in advance of the South San Fernando Streetscape project. Project progress has been slow due to rain. The 12-inch main is in place and has been pressure tested and disinfected. Existing water services are being tied over. The conversion of the 8-inch main to reclaimed use will then follow. All work should be completed in May.

• Work began on 1,225 lf of 12-inch water main in Flower St. to prepare for the construction of the Home Depot Project. Work in Flower St. will be completed in May. Work to install the 12-inch main across the Home Depot Site will be done in June.

• Work began on installing 440 lf of 8-inch water main in Palm Ave. between 6th and 7th
  Streets.  Work will be completed in May.

Legislative Update

• Refer to the attached legislative reports.

ELECTRIC UPDATE

Electric Reliability

There were no customer outages during April. As of April 30, 2005, the system-wide average remains 0.3005 outages per year, compared with an industry average of 1.2 outages per year. As of April 30, 2005, the average service availability is 99.9947%, exceeding the City goal of 99.99%. The average outage length remains 76.7 minutes, compared with an industry average of 80 minutes.

The following table shows the system-wide reliability statistics for Fiscal Year 2004-05 through April 30, 2005 as compared to Fiscal Year 2003-04:

Financial and Operations Update

• �        Fiscal Year 2004-05 year-to-date Power Financial Results as of April 30, 2005:

( ) = Unfavorable

* Year-to-date actual: July�04-March�05 actual and April�05 budget

(A)       Termination of the fiber optic agreement with ICG with an annual impact of $156k.

(B)       Includes December settlement payment from El Paso for $828k.

(C)       BWP received a $679k reimbursement from SCPPA for labor and projects related to MPP. These funds, although Aid-In-Construction (AIC) in nature, are applied against MPP expenses and offset the retail power supply expenses.   

• Fiscal Year 2004-05 Power Fund Financial Reserve balances as of April 30, 2005 is summarized in the following table:

Local Generation Operations Update

Unit Status

• Olive 1 is on-line and available for normal service.

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

• Olive 4 is available for emergency service.

• Lake One is available for normal service.

• Awaiting T1 line installation on the Micro-Turbine Project.  The project is nearing completion.  

• Hydro energy production for April was 67,700 kWh compared to the goal of 50,000 kWh. The year-to-date actual hydro production is 592,000 kWh compared to the goal of 659,000 kWh.

April 2005 Unit Data

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 April, Kvaerner has worked 1,001,779 man-hours with no lost time cases and four recordable cases.

Budget

Refer to the attachment for detailed information on actual expenditures for the period ending April 30, 2005.

Schedule

The major construction activities on the Project are essentially complete. The checkout and calibration activities necessary for First Fire are now in progress. It does not appear that the Date of Firm Operation will occur on May 25. It is anticipated that the Date of Firm Operation will occur by the end of June.  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

Monthly reports are being submitted to the CEC as required. The Project responded to the Notice of Violation for dirt entering the Burbank Western Channel caused by landscaping work in that area. The response was satisfactory to the Public Works Department. A number of submittals are being made to the CEC to satisfy those conditions required in order to go into operation.

Engineering, Procurement and Construction Activities since last Project Director�s Report of April 18

Transmission

• Southern California Edison (SCE) Tax Issues on Facilities Agreement. Discussions will resume with SCE management to determine how SCE routinely handles tax issues on facilities improvements with municipal entities. The SCPPA attorney will be contacting Greg Simay to set up a meeting with Lawren Minor as soon as his work schedule permits.

• Transmission Legal and Regulatory Study. The final report was distributed on December 10.

• Scheduled Services Agreement (SSA). The SSA is in the process of being executed by the participants.

Coordinating Committee Actions at its meeting on April 21

• Approved the Operating Budget for Fiscal Year 2005-06.

• Reaffirmed its actions taken at its Special Meeting on March 29, 2005.

• Approved Agreement with General Electric for purchase of Initial Spare Parts for $7,379,486.

• Approved authority to execute a lease-purchase agreement with GE Public Finance, Inc. for financing the purchase price, less Glendale's portion, of Initial Spare Parts at an interest rate not to exceed 4.1 percent on a five-year term.

Project Manager�s  Actions Since Last Project Director�s Report of April 18

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

• Approved $74,911 for Kvaerner for rental of generator and fuel expenses to supplement construction power.

• Approved $56,341 for Kvaerner to modify the east wall for stucco and landscaping work.

• Approved $15,481 to Kvaerner to add a concrete pad under the filter press in the zero liquid discharge area.

• Approved extension of Personal Services Agreement with John Feeney for on-site inspection services.

• Approved $25,000 for Kvaerner to perform extra work in construction of the Control and Services Building.

• Approved $48,802 for Kvaerner to perform extra work in lining the reclaimed water storage tank.

Key Milestones and Anticipated Significant Activities For Next 30 Days

Power Supply Planning & Regulatory Update

Burbank � Bonneville Power Administration (�BPA�) Litigation over Long-Term Sale and Exchange Agreement

The Department of Energy�s Contract Board of Appeals issued their decision in this case. With regard to Counts 1 and 2, which related to how the annual price escalations under the contract had been determined by BPA and applied, the Cities of Burbank, Glendale, and Pasadena were unsuccessful in their arguments. The city attorneys are currently reviewing the decision with our Washington, D.C. counsel to determine whether to appeal this ruling.

On Count 3 (Burbank was the only party on this Count), which dealt with contract manipulation by BPA, the ruling came out in Burbank�s favor. BPA was directed to pay damages of $550,000 plus interest going back to the early 90�s when the infraction occurred. It is expected that BWP will receive around $700,000 related to this matter.

Power Supply Capital Projects

�        SCADA/EMS

The updated hardware requirements for upgrading the existing Telvent SCADA/EMS hardware, software, and RTU�s were received from Telvent on April 18.

Work continued on several SCADA displays that will be needed for Magnolia operations, including determining system energy accounting and losses.   

BWP Engineering staff has moved and installed the Telvent Emergency Back-Up server from the SCADA Center to its final location in the new Magnolia Services Building. Connections have been made to the existing fiber optic system and it should be fully operational by mid June, pending resolution of security issues.

The Switching Procedure application of OPERA is operational and in use by the dispatchers. Improvements are being made and existing switching procedures continue to be reviewed, revised as needed and entered into OPERA.

BWP Engineering staff continues to work with Siemens New Energy to implement the New Energy Scheduling software that will be used for MPP. The servers for the scheduling software have been delivered and installed by New Energy and BWP staff in the new Magnolia Services/ MPP Control Building. The servers will be connected to the DCS and available for software on-site testing in early June.

The new Satec meters measuring harmonics were installed at Capon and data on harmonic content was incorporated into SCADA. Real-time harmonic content on the Capon transformer banks is now being monitored and is available to all on the web browser. Tests were conducted using the Capon 34.5 kV capacitor banks and harmonic content monitored. No excessive harmonics were seen and the Capon capacitor banks were placed in regular service.

Telecom

Engineering developed a fiber optic service proposal for Ascent Media to connect Ascent 2130 Hollywood Way to FotoKem 2801 W. Alameda Ave.

Engineering developed a fiber optic service proposal for Disney to connect Team Disney Building 500 S. Buena Vista St. to Deluxe 2400 Empire Ave.

Engineering developed a fiber optic service proposal for Disney to connect Team Disney Building 500 S. Buena Vista St. to Technicolor 1632 Gardena Ave. in Glendale.

Engineering developed a fiber optic service proposal for Disney to connect Team Disney Building 500 S. Buena Vista St. to Laser Pacific Media Corp. 809 N. Cahuenga Blvd.

Engineering developed a fiber optic service proposal for Disney to connect Team Disney Building 500 S. Buena Vista St. to Disney 2323 W. Alameda Ave.

Engineering personnel released, and BWP field personnel completed, a fiber optic job for Disney to connect Team Disney Building 500 S. Buena Vista St. to Ascent Media 2901 W. Alameda Ave..

BWP field personnel completed a fiber optic job for Station Design Relays to connect Olive Station to Western Station in Glendale.

BWP field personnel completed a fiber optic job for Station Design Relays to connect Capon Station to Western Station in Glendale.

BWP field personnel completed a fiber optic job for Station Design Metering to connect Flower Station to Western Station in Glendale.

MPP Service and Control Building � Third Floor Tenant Improvements

BWP Administration Building, Phase III Interior Remodel

Six Power Systems and six BWP Finance employees were moved from the Administration Building to the third floor of the MPP Service and Control Building. Four additional Power systems employees and two Finance employees will take occupancy shortly and that will complete the third floor tenant improvement project.

Perkowitz+Ruth Architects have completed the structural, electrical, mechanical and plumbing additions to the construction documents for the Administration Building remodel. This architect firm is waiting for Purchase Planners Group to finish the programming of work spaces so they can be incorporated as well.

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 complete. Underground cable has been delivered and installation is completed. The first 34,500 volt line is completed and energized. The Keystone-Capon #1 line was also energized. 

Since July 2004, 102 power poles have been replaced or installed. Since July, a total of 150 pole replacements were engineered and 172 issued to the field. In April, secondary line improvements in the hillside area were completed.

Since July, 15 pad mounted customer stations have been engineered, 10 were issued to the field and 11 pad mounted transformers have been energized. BWP has completed work on a new service consisting of a 34.5 kV pad-mounted switch and a 34.5 kV to 277/480 volt transformer for Hydro Aire. This service was energized in March. A deteriorated pad-mounted switch has been replaced in the Bel Aire Dr. area. BWP also replaced the pad-mounted switch in the Disney Channel Building with an automatic source transfer switch.

Extensive underground work needed to provide service to three major developments in the downtown area (Olive Civic Plaza, Burbank Village Walk, and Senior Artists Colony) was completed in February. Olive Civic Plaza and Senior Artist Colony were energized in March. The first phase of Burbank Village Walk was energized in April.

Preliminary design of the Warner Ranch industrial circuit from Capon Switching Station at Warner Ranch is in progress. BWP has placed an order with Southwest Power to purchase a padmount switch and other related equipment on behalf of Warner Bros. All equipment and materials have been received. BWP has also purchased a 34,500 to 4,160 volt padmount transformer from ABB Inc. for this project.  It was delivered in March 2005. Warner Bros. paid the full amount as a deposit for the purchase of these items. This project is expected to be completed by September 30, 2005.  

The removal of power poles along the Flood Channel in preparation for the placement of trees was completed on schedule.

Construction for the second phase of the streetlight system undergrounding on Magnolia Blvd. between Pass Ave. and Buena Vista St. was completed on schedule in October.  Power sources for the Magnolia Park street decorations are ready for merchants. Design drawings for the last phase of undergrounding the streetlight system on Magnolia Blvd. are complete, but the project has been delayed due to a lack of  streetlight funds.

Engineering is working with the Redevelopment Agency on South San Fernando Blvd. street improvement projects, and with the Public Works Dept. and Traffic Signal Division on other street/traffic improvement projects including the Olive/Alameda Intersection Widening, Empire Avenue Streetscape Project and San Fernando Intelligent Transportation System Project.

Since July, 23 additional streetlights (including 7 pole-mounted lights) have been engineered in response to requests from residents, with 20 lights installed. Conversion of the streetlight series circuit on Buena Vista Ave. to low voltage was completed in March and one other series conversion work order tied to Public Works� street improvement projects was issued to the field.

Engineering has completed two aid-in-construction underground streetlight designs tied to the Old Police Block Development. One of them, Burbank Civic Plaza, is almost complete. The job order for the Senior Artists Colony is complete.

The last pole mounted oil switch was removed in April during the unloading of the Pacific-16 feeder.

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 has completed all the work and BWP completed the energization of this project during the week of November 16, 2004, except for the connection to MPP. The underground connections to MPP via step-up transformers were completed in December 2004 for testing purposes and are ready for service.     

Bock Co. completed the installation of a new underground duct system in the BWP Yard to underground two, 69,000 volt overhead lines as part of BWP�s overall plan to improve and modernize the BWP generating site. Both riser poles north of the Magnolia Bridge are completed as well as  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 cable for Olive-Lincoln #1 and #2 has been pulled. BWP crews have completed the splicing and termination of lines. Both lines were energized in November 2004.

The 69,000 volt underground cable and devices for making the connections from MPP to the Olive Switching Station were ordered. The Generator Step Up (GSU) and other related power transformers were manufactured, tested, and shipped from Turkey in early June 2004. These transformers arrived on site and were set on the pads. The 69 kV cable was shipped on August 28, 2004 and arrived on site before September 3. Eighteen runs from the MPP GSU to the GIS were pulled. All terminations have been completed and cables are ready to be energized. All related work was completed and the GSU was energized for testing purposes in December 2004. BWP has also completed all work related to the connection of the MPP reserve transformer to the Burbank Substation. The connection was tested in December 2004 and was energized as a permanent service in April 2005.    

BWP staff is working on the Olive Switching Station retrofit by upgrading circuit breakers, busses and other equipment. This upgrade is needed for MPP. Approximately 80% of the work is complete. The Olive-Lincoln #2 breaker, B-3 bank breaker position, A-3 bank breaker position, Olive-1 breaker position, and Olive banks A-4 and A-5 breaker positions are completed. Crews are currently working on the Olive Unit 2 bank breaker position and the line to the City of Glendale (Olive-Capon-Western #1). Both are in service. The remaining two breakers, Olive Valley #1 and future Olive Valley #2 were also completed.  

The underground duct work to upgrade the underground portion of the western leg of the Olive-Capon-Western #1 line, and relocating the riser pole to the south side of Olive Ave., is complete. Bock Co. is working on the final resurfacing of the street. BWP crews have completed all of the pole and cable work and final connections have been made to make it ready for service.

BWP Electrical Engineering has completed the design for the new underground ducts installation along Verdugo Ave. from Kenwood to California St. The underground duct work at Verdugo Ave., from Frederick to Buena Vista, and along Buena Vista, was started on October 6 and was completed in January 2005. BWP crews were expected to start pulling the cable in early January but were delayed due to heavy customer related work, Hydro-Aire, the Senior Artist Colony and a Cusumano project.  

BWP overhead distribution crews completed reconductoring and reinsulating the 69,000 volt line       (pole line joint with SCE) along Buena Vista from Verdugo Ave. to Chandler Blvd. The same crew has completed remaining reinsulation work in the direction of the Olive Switching Station. This will eliminate having to wash insulators as the replacements will be Polymer insulators. The portion of the Olive-Capon-Western #1 line without the Western leg (Olive Capon #1) is in service. BWP has completed another 69,000 volt line (Toluca-Capon #1) between the Capon Switching Station and LADWP RSE, and it is in service. This involved overhead pole line work along Hollywood Way, underground cable work and relay work on the both ends.

Engineering completed preliminary work to relocate the Burbank Substation from its existing location to a new location in BWP�s yard at Lake St. and Olive Ave.  Navigant Consulting is doing an analysis on whether the new proposed reconfiguration of a 34,500 volt system in this area will work  BWP has completed preliminary engineering work. BWP is proceeding with the replacement of transformer banks at the Olive Switching Station first due to reliability reasons.

A total of 128 remote meters were installed in April; 29 were requested by the Customer Service Division and 99 were meter change-outs and meters for new services which were performed by the Line Crews or Test Shop.

Itron, the manufacturer of remote read meters, recently announced a new feature. The meters transmit an additional message that can be used with a fixed meter reading network. This message contains 4 hours of kWh consumption information that can be used for Time of Use (TOU) billing. With an eye to the future BWP has changed the meter specifications to include the new technology. Moreover, it does not increase the price of the meters.

BWP Electrical Engineering is working with Power Plant personnel and consultants for the Micro Turbine Project at the landfill to bring it online. The electrical connection and padmount transformer is already upgraded and we are working on the protection as well as some commissioning issues.

Customer Service

Torchiere Exchange Program

BWP will be holding our fourth Torchiere Lamp Exchange on Saturday, May 21, 2005.  BWP will take old halogen or incandescent floor lamps (these are called torchieres) and give you new, Energy Star fluorescent lamps. These high-efficiency lamps use about one-fourth the energy while providing the same amount of light. That means customers are saving money every time the lamp is on. While incandescent lamps are energy inefficient, halogen lamps also pose a very real fire risk. Halogens generate light largely through heat and can burn as hot as 1100 degrees fahrenheit! Nearly 200 fires and several fire-related deaths were caused by halogen torchieres. All floor lamps turned in will be environmentally recycled. All for free. 

Protector Del Agua

The Metropolitan Water District of Southern California (MWD) offers a series of landscaping classes to its member agencies called Protector del Agua (PDA). The City of Burbank and the City of Glendale joined together to take advantage of these landscaping classes from MWD. A set of four classes will run on May 7, 14, 21, & 28 covering a different landscaping topic. MWD will provide a landscaping expert to teach the course. The topics covered will be: Landscape Sprinkler Systems, Watering and Fertilizing, Basic Landscape Design, and Drought Tolerant Plants. This series of classes always proves to be one of our most successful conservation programs. There will be a one day condensed over flow class on June 11. 

Green Power Hero

BWP is proud to provide to the Burbank Unified School District an educational program called �Green Power Hero.� Green Power Hero is a high-energy assembly program that teaches second through fifth grade students about energy produced from fossil fuels and renewable energy. The program also shows students how they can make small everyday choices to conserve resources and improve the environment. To date, five Burbank elementary schools have received this education with upcoming assemblies scheduled for June.

Legislative Update:

Refer to the attached legislative reports.

RED:RAC:FCF:WOM:GLS:JLF

H:MAY W&E OPERATIONS REPORT

Attachments

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