To: Honorable Public Utilities Board Submitted by: /s/ Douglas Draeger AGM Engineering and Operations

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1 AGENDA ITEM NO.: 5.D.1 MEETING DATE: 0/4/014 ADMINISTRATIVE REPORT NO.: To: Honorable Public Utilities Board Submitted by: /s/ Douglas Draeger AGM Engineering and Operations From: Tito R. Nagrampa Jr., P.E. Approved by: /s/ Sr. Electrical Engineer Ronald V. Stassi Interim General Manager Juan M. Ulloa, P.E. Engineering Supervisor Subject: Requiring Four-Fifths Vote, Authorize the Interim General Manager to Sole Source the Purchase of 115 Kilovolt Protective Relays and Related Accessories from Schweitzer Engineering Laboratories in an Amount Not to Exceed $95,000 RECOMMENDATION By resolution, requiring four-fifths vote, authorize the Interim General Manager to sole source the purchase of 115 kilovolt (kv) protective relays and related accessories from Schweitzer Engineering Laboratories (SEL).in an amount not to exceed $95,000. BACKGROUND At the October 1, 013 regular Public Utilities Board (Board) meeting, the Board authorized Alameda Municipal Power (AMP) to enter into a professional services agreement with Pike Energy Solutions, Inc. (Pike) for the engineering services of the 115kV Transmission and Substation Protection Relay Replacement and SCADA Integration Project (Project). Pike s scope of work includes engineering design and construction drawings to replace the 115kV protective relays, relay settings, SCADA integration, and relay type selection in accordance with best industry practices. Electro-mechanical, solid state and microprocessor based relays are used to monitor current, voltage, frequency and other electric power units. Their function is to sense abnormalities such as over-voltage, short circuits and equipment overloading and then respond by directing a circuit breaker to interrupt or isolate the abnormality. Circuit breakers do not trip or open in the event of abnormal conditions, but rather they have to be told to do so by a protective relay. These devices also frequently need to be coordinated with other similar devices to properly protect an electric system from cascading into complete blackout conditions. Microprocessor based relays have pretty much supplanted the use of earlier electro-mechanical and solid state relay devices in the electric power industry. AMP s 115kV protective relay replacement project will eliminate six solid state distance relays, four electromechanical synchronism check relays, eight electromechanical undervoltage relays and six electromechanical ground directional overcurrent relays used in transmission

2 AGENDA ITEM NO.: 5.D. MEETING DATE: 0/4/014 ADMINISTRATIVE REPORT NO.: protection in AMP s two major substations (Cartwright and Jenney) and in Northern California Power Agency s (NCPA) Combustion Turbine Substation. Furthermore, the relay replacement project will also eliminate four solid state fault detectors and breaker failure timing relays for substation backup protection at Cartwright and Jenney Substations. The new relays will consolidate some protective and metering functions, eliminate several auxiliary relays and will be integrated into SCADA using the existing remote terminal automatic controller (RTAC) 3530 for monitoring analog readings and control functions of the 115kV transmission lines and substation equipment. The existing transmission and substation legacy relays are being upgraded because they are obsolete and are no longer supported by their manufacturers. Solid state relays are also prone to failure because their electronic components are susceptible to overheating and failure may not be easily detected due to the absence of alarm indicators. Moreover, these relays have reached their expected maximum service life. Auxiliary relays can also be a point of failure in protection and monitoring schemes. DISCUSSION AMP staff and Pike engineers have been collaborating in the engineering and product selection of protective relays to be used for the Project. Pike engineers recommend, and AMP concurs, the use of microprocessor based Schweitzer Engineering Laboratories (SEL) 311L and SEL 751 type relays to replace the old and obsolete distance, directional, fault detector, undervoltage, synchronism check and breaker failure relays. The line current differential protection element and the fiber optic communication channel of the new SEL 311L will be used in order to have 100% coverage of its zone of protection. The new SEL 311L relay will also serve as a redundant backup of the existing SEL 311L line current differential relays protecting the 115kV transmission lines. These new relays will provide additional security, selectivity and high speed tripping during fault conditions on its zone of protection on the 115 kv transmission line. Moreover, the step distance element of the SEL 311L relay will be configured and enabled to provide an additional backup protection in the event the communication channel between relays is lost. This provides and additional level of security during fault condition. The new SEL 751 relay will replace the ground directional, fault detector, synchronism check, undervoltage and breaker failure timing relays. Some of the existing auxiliary relays will also be eliminated and incorporated into these new relays, thus simplify wirings and facilitating troubleshooting in the event of device failures. The table below summarizes the number of new microprocessor base relays per substation to be used as replacement of existing legacy relays.

3 AGENDA ITEM NO.: 5.D.3 MEETING DATE: 0/4/014 ADMINISTRATIVE REPORT NO.: Summary of Protective Relays to be Replaced and Installed Substation Old Relay Type-Function Qty. New Relay Type-Function Qty. Jenney GEC Quadramho-Distance SEL 311L-Line Current Differential/Distance/Synchcheck Jenney GE-Directional/Breaker SEL 751-Directional/ 7 Failure/Undervoltage/Synchcheck Undervoltage/Breaker Failure Cartwright Quadramho-Distance SEL 311L-Line Current Differential/Distance/Synchcheck Cartwright GE-Directional/Breaker SEL 751-Directional/ 7 Failure/Undervoltage/Synchcheck Undervoltage/Breaker Failure NCPA-CT Quadramho-Distance SEL 311L-Line Current Differential/Distance/Synchcheck NCPA-CT GE-Directional/Breaker SEL 751-Directional/ 8 Failure/Undervoltage/Synchcheck Undervoltage/Breaker Failure Total 8 1 Microprocessor based relays are a multifunctional device. A single relay can be used for multiple protection functions such as distance, directional overcurrent, breaker failure timing, metering, load profiling, event capturing and reporting, and SCADA monitoring and control. Microprocessor based relays are also low maintenance, requiring testing only once every ten years. Microprocessor relays are self-diagnostic and will send an alarm signal via SCADA when a failed components is detected. Furthermore, the use of the microprocessor relays will eliminate transducers, metering and associated wirings and devices. Sole Source Justification Staff recommends sole source purchasing of the new SEL 311L and SEL kV relays and accessories from Schweitzer Engineering Laboratories (SEL) for an amount not to exceed $95,000 including sales tax. The purchase will also include one spare SEL 311L and one spare SEL 751 relay and a 10-year warranty on all SEL products and comprehensive technical support at no additional cost. The purchase from SEL is for compatibility with existing installed relays, device settings and configuration familiarity, and maintenance purposes. Many, if not most, electric utilities have standardized their protection systems using only one manufacturer s product. Such is the case with Roseville, Silicon Valley Power, Merced, Turlock and Palo Alto who all sole source their relays from SEL for this reason. Other brands such as Basler and G.E. are not compatible with AMP s existing SEL relays. In addition, the PG&E relays that AMP coordinates its protection functions with in Station C and J are made by SEL. FINANCIAL IMPACT The approved FY 014 capital budget includes a line item under the Capital Improvement Project, Installation of Smart Grid System with sufficient funds for special purchases. LINKS TO BOARD POLICY AND OBJECTIVES Strategy 8: Plan for the long-term reliability of utility distribution system assets while ensuring that annual operations and maintenance are implemented

4 AGENDA ITEM NO.: 5.D.4 MEETING DATE: 0/4/014 ADMINISTRATIVE REPORT NO.: EXHIBITS A. Resolution B. SEL Relay Quotation

5 CITY OF ALAMEDA ALAMEDA MUNICIPAL POWER RESOLUTION NO. BY FOUR-FIFTHS VOTE, AUTHORIZE THE INTERIM GENERAL MANAGER TO PURCHASE 115KV PROTECTIVE RELAYS AND RELATED ACCESSORIES FROM SCHWEITZER ENGINEERING LABORATORIES IN AN AMOUNT NOT-TO- EXCEED $95,000 WHEREAS, on October 1, 013, the Public Utilities Board (Board) authorized the General Manager to enter into professional services agreement with Pike Energy Solutions, Inc. (Pike) for the engineering services for the 115kV transmission and substation protection relay replacement and SCADA integration project; and WHEREAS, Alameda Municipal Power (AMP) staff and Pike engineers have been collaborating in the engineering and product selection of protective relay to be used for the 115 kv protective relaying and SCADA integration project; and WHEREAS, AMP staff and Pike engineers recommend to purchase and use microprocessor based SEL 311L and SEL 751 relays to replace the old and obsolete six distance, six directional, four synchronism check, eight undervoltage, and four fault detector and breaker failure relays; and WHEREAS, the sole source purchase from SEL is for consistency and compatibility with existing installed relays, device settings and configuration familiarity, and maintenance purposes; and WHEREAS, funds for this expenditure have been previously approved by the Board as part of the FY 014 capital budget and included as a line item under the project Installation of Smart Grid System. NOW, THEREFORE, BE IT RESOLVED that the Public Utilities Board of the City of Alameda, by four-fifths vote, authorizes the Interim General Manager to sole source the purchase of 115 kv protective relays and related accessories in an amount not-to-exceed $95,000 including sales tax from Schweitzer Engineering Laboratories. Approved as to Form By: /s/ Janet C. Kern City Attorney AGENDA ITEM NO: 5.D. MEETING DATE: 0/4/014 EXHIBIT A - Page 1 of 1

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