Alcoa – Valhalla/McKenzie Program Feb. 19, 2013

Highlights and Project Team • $20,000,000 program, on time and under budget with great

teamwork and coordination • Project included a District wide effort: Tech Shop, CM

Wiremen, System Operations, Engineering, Project Management, Legal, Safety, Environmental, Drafting

• Alcoa (Funding) • Fluor (Alcoa’s project management firm) • BPA (Partner during Valhalla transition) • SAIC Engineering (formerly RW Beck, Alcoa’s consultant) • NAES Power Contractors (Alcoa’s contractor) • Various sub-contractors (Alcoa’s contractor)

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Real District Wide Team Work!

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• Alcoa and the District began work on a facilities study in 2007 to provide reliable service to three pot lines, able to sustain a worst case outage, through 2028.

• To ensure reliable electric service for Alcoa, the District purchased the low side of BPA’s Valhalla Substation. All reimbursed by Alcoa including internal costs plus admin. fee.

• Major retrofit of two very old substations

Why did we build it?

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Program negotiations began: 2006 Major Construction start: Late 2010 Planned completion: April 2013

Budget

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Timeline Initial: $20,000,000 Spent to date: $19,817,000 Projected: $20,000,000 Est. at completion: $20,000,000

Project is on time and under budget

What we accomplished • Tied together two substations and Alcoa for the District’s

ability to provide power to Alcoa • Program duration was six years. Design, procurement, and

construction took 3 years beginning in 2010. • Successfully tied two energized yards together under N-1

condition with no project work-related power loss to plant • Alcoa/Fluor identified this program as their operationally

highest risk program. District crews sustained one safety incident in 32,800 hrs worked to-date.

• During construction Alcoa determined it would start a third pot line. This was about a year ahead of schedule, causing significant challenges.

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Original configuration (District assets in purple, McKenzie Substation)

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New configuration (District’s assets in purple)

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Engineering Highlights/Challenges

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• Outside engineering • Plant contingencies • N-1 planning throughout construction –

wireman & tech on call 24/7 • Switching & clearances • No significant unscheduled outages

Wiremen Highlights/Challenges

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• Great interface/coordination with construction contractors

• Switching & clearances: Some 289 switching/clearances were performed (very complex), with flawless coordination

• Safety throughout project execution • Very tight working conditions • Plan execution & attention to details

Technician Highlights/Challenges

• New SCADA system • New Remote Telemetry Unit • New metering (4 ea.) & relay package • Capacitor bank • Testing & commissioning: District technicians

completed all technical tie-in and programming integral to systems operation

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How was it successfully completed?

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• Long-range planning - project began in 2006 (initial discussion)

• Vision for long-term power sale contracts

• Project team daily and weekly progress meetings

• Deliberate attention to N-1 condition planning and power outage coordination. If a pot line was de-energized it could freeze up in a matter of hours and would need to be rebuilt.

Project Status • Project is substantially complete and Alcoa is being serviced

through project improvements • 230kV yard & transformer modifications completed • New 115kV power transformer & bus connections completed • McKenzie & Valhalla 13.8kV yard modifications completed • New capacitor bank and relocations completed • Remote Telemetry Unit & revenue meter completion • Cable tray expansions completed • Remaining work:

– Continue Valhalla protection panel installations and testing through April 2013

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