Grand River Dam Authority’s board of directors found the Power Cost Adjustment change for the second half of 2009 will not be nearly as dramatic as first projected.
PCA is a fluctuating amount which makes up for cost changes in the fuel it takes to generate electricity. The current PCA is 6.26 mills. Beginning July 1, the PCA will increase slightly to 6.45 mills per kWh through December.
“We’re happy that the projections are lower than previously projected,” GRDA Chief Financial Officer Carolyn Dougherty said.
GRDA Chief Executive Officer Kevin Easley said GRDA is still a low-cost electricity provider because of the mixed ways it produces power, including natural gas, water and coal. For this reason, “GRDA has been able to sustain stable prices. We are very pleased to be able to announce the PCA will remain so
consistent.” Previous projections had anticipated the surcharge for the second half of 2009 would reach 12 mills. One of the reasons that did not happen is natural gas prices have gone down.
Directors watched a video at their regular meeting last week about the installation of new computer controls for GRDA’s 69 electricity substations. The industrial control system is the Supervisory Control and Data Acquisitions system (SCADA).
“The days of using a screw driver and a soldering iron are diminishing,” Mike Pendleton said. This system allows all the substations to transmit data to the main computer, including such things as breaker status and alarms on the system. Pendleton said it was a quick conversion to upgrade to the new SCADA system.
John Young said information is shared quickly now, making electricity transmissions tracking and scheduling much easier.
Later in the video, Salina Mayor Darrell Blaylock said his town lost electricity in the recent flood, which messed up the water system pumps. Blaylock said due to the expedient efforts of GRDA workers, no one in Salina lost water.
The directors approved several recommendations from the assets committee including a water line easement for Rural Water District 9 in Mayes County at a cost of $250. Five-year leases were approved for Lakeside Terrace Mobile Home Park and RV Campground, Spring Cove Resort Mobile Home Park and Pelican Landing, Inc. A two-year lease was approved for Jensen’s RV Park. A request was approved for an electric line easement on GRDA property with KAMO at a cost of $3,019 an acre.
The directors approved a construction change order.
“It’s my goal this is the last change order you’re going to see on this building,” Holly Moore told the directors. The change order for the Ecosystems & Education Center under construction on Grand Lake with Crossland Construction is for electrical outlets, carpet, additional tract lighting and changing out some glass. The change is not to exceed $6,715 in additional cost. Moore said the tentative dedication date for the center is Oct. 21.
Dougherty brought two power purchase and sale agreements to the board for approval. She said with the recession, some customers have diminished their load limits, cutting GRDA revenue. She said these two contracts will recover approximately $10 million in revenue. The first contract is to supply five megawatts for one year to the Carthage, Mo., water and electric plant. The second is to provide additional power to an existing contract with Paragould, Ark., allowing load growth, or more customers, to be put on their system. Both proposals were approved.
A work authorization was approved with Burns & McDonnell Engineering for inspection at Pensacola dam and other routine tasks for Pensacola, Markham Ferry and the Salina Pumped-Back storage system. Anthony Due, Assistant General Manager of Operations and Hydro, explained these jobs must be completed by engineers approved by the Federal Energy Regulatory Commission. The inspections are federally mandated. Directors approved the contract not to exceed $198,500.