Blog Archive

Monday, May 14, 2018

Coincident Peak Notice

E.P.B. Electric Customers on the Variable Price Rate- We predict the POSSIBILITY for May's peak electric demand to occur on Tuesday, May 15th between 12pm & 6pm. This is only a prediction based upon our best guess as to what the combination of all customers in Glasgow will demand from T.V.A. A peak demand hour can occur during any of the maximum of 24 hours of each month during one of our predicted peaks. This is our forecast which is provided as a convenience for E.P.B. customers who wish to receive forecasts. If you want to move to a fixed energy rate without coincident peak demand charges, please contact us at 270-651-8341.
Friday, May 11, 2018

Coincident Peak Notice

E.P.B. Electric Customers on the Variable Price Rate- We predict the POSSIBILITY for May's peak electric demand to occur on Monday, May 14th between 12pm & 6pm. This is only a prediction based upon our best guess as to what the combination of all customers in Glasgow will demand from T.V.A. A peak demand hour can occur during any of the maximum of 24 hours of each month during one of our predicted peaks. This is our forecast which is provided as a convenience for E.P.B. customers who wish to receive forecasts. If you want to move to a fixed energy rate without coincident peak demand charges, please contact us at 270-651-8341.
Wednesday, May 2, 2018

Coincident Peak Notice

E.P.B. Electric Customers on the Variable Price Rate- We predict the POSSIBILITY for May's peak electric demand to occur on Thursday, May 3rd between 12pm & 6pm. This is only a prediction based upon our best guess as to what the combination of all customers in Glasgow will demand from T.V.A. A peak demand hour can occur during any of the maximum of 24 hours of each month during one of our predicted peaks. This is our forecast which is provided as a convenience for E.P.B. customers who wish to receive forecasts. If you want to move to a fixed energy rate without coincident peak demand charges, please contact us at 270-651-8341.
Wednesday, April 18, 2018

April 24, 2018 Board Meeting


MEMORANDUM
                                                                                                                  
                                                                                               
                                                                                     
TO:                       Members of Glasgow Electric Plant Board                 
                                                                                               
FROM:                  William J. Ray, PE                 
                                                                                               
DATE/Time:          4/20/2018, 6:00 PM    
                                                                                                                  
SUBJECT:            Board Meeting Information                                          


                                     
Preamble
April has been another blissfully calm month, and that is totally fine with the EPB team. We’ve enjoyed sharing the news about our PEER certification and we’re still making strides toward the reorganization moves that are required to address the large number of retirements coming up in the next several months. I’ve presented our lessons learned relative to non-volumetric rate design to a couple of seminars, and there is great interest in the LPC community. We’ve also started work on the electric retail rate change that will be necessary for the fall. TVA is moving along on its plans for wholesale rate changes, and some decisions on our reaction to that change will likely be on the agenda for May. The other issue is what the legislature does with the pension reform bill.   

The main event for this month will be the cable television rate change that we discussed in December and January. This is required due to the increased cost of programming, especially from the broadcast stations in Bowling Green. This is another situation wherein we are between a rock and a hard spot. Cable rate increases are unpopular, but they are a fiscal necessity.

The meeting might be a bit long, so try to grab a snack before you arrive. Now, let’s move on to this month’s agenda!

May 1 FCA
As we continue the third year of our new retail rate designs, May 1 will bring us a decrease in overall power cost due to a decrease in the FCA. The FCA calculation always trails actual TVA fuel expenditures by a couple of months, so May will see us getting a smaller decrease than expected, due to the colder March and the fuel cost attendant thereto. The May 2018 FCA is going to decrease very slightly, to 1.921 cents per kWh, and that decrease, when blended with our other wholesale costs, will bring about a roughly .5% decrease in overall energy costs to us and our customers. As usual, I am attaching the narrative on the FCA from the TVA portal. On May 1, the energy component of our retail rates will be adjusted to reflect this decrease to the wholesale cost of energy.
         
Rate Design Fundamentals

While I will not go over all of the rate design slides, unless you want me to do so, we will spend some time discussing the variables that are being solved relative to the equation for our needed retail rate change for later this year. The elements of the rate change we will recommend to you later in the year include:

·         Increased fixed costs due to three-year lapse since last design of retail rates.
·         CERS increased cost, which, will not be as large as we feared thanks to the Kentucky Legislature overriding Gov. Bevin’s veto of a bill which allows the CERS agencies to limit their annual contribution increases to a much smaller amount.
·         TVA wholesale rate change, for which we will have options whether to accept their planned fixed cost charge this year, with a corresponding reduction in kWh charges, or delay until 2019 to implement.
·         Implementation of gradualism, in our process of removing delivery charge markup to kWh and moving the remaining fixed cost revenue collection to the Customer Charge, as we initially envisioned.
·         Additional personnel cost, as we have discussed, to recognize the cost of hiring and training new personnel to replace numerous upcoming retirements.
·         Capital projects, and the Board’s vision of how aggressively EPB needs to move in upgrading the resiliency of the EPB grid.



Cable Television Rate Adjustment and Other Recommendations
During late 2017 and January of this year, we talked at length about our negotiations with programming providers and broadcast stations and how decisions about which broadcast stations to drop and which ones to keep, would drive the size of the 2018 cable rate increase. After a lot of work by everyone, especially our Cable Television Programming Committee, we settled on dropping the Louisville and Nashville stations to produce the smallest possible rate increase. Now is the time to implement the $3.00 per month increase that we settled on in January.

At the meeting I will recommend the details on how this $3 monthly increase should be implemented. Since the cost of broadcast programming went down as a result of our dropping the Nashville and Louisville stations, we will recommend a reduction in the retail charge for the broadcast channels of $1.60. Of course, we still have to pay for the increases in programming cost from all of the other providers. The cost of this year’s round of previously agreed increases to the other programming is $4.60. So, broadcast needs to be reduced by $1.60 and the Essential Tier needs to go up by $4.60. Combine those two adjustments and you get the net $3.00 per month increase that we talked about in December and January.

May 2018 Meeting Date
The TVPPA Annual Conference is May 20-23, and at least two board members, maybe three, are planning to attend. That would make it very difficult for the board meeting to occur on its normal 4th Tuesday date in May. I will suggest that the May meeting be rescheduled. I hope you will all find a workable date outside of the May 20-23 range.

Reports
Programming Committee. Most of this report will likely be given during the discussion of the cable rate increase earlier in the meeting. However, there were a couple of additional items as you can see from a review of the minutes of the April meeting. You will need to consider ratifying their recommendations.

Safety Report. I will review our latest Workers Comp modifications at the meeting. We were really doing well and our W/C cost was decreasing each year, but the last fiscal year included a couple of expensive accidents that will cost us. I’ll have more detail at the meeting.

EPB Version 4.0. Inspired by the process of PEER certification, I’ve challenged the team to make steady progress toward the 4th iteration of Glasgow EPB. The first version of our utility encompassed the totally analog format that existed from 1962 until 1988, when we became an electric power and cable television utility. Version 2 (electric/cable television) lasted until 1996 when we added internet to our offerings and began to transform the broadband network to support a wide variety of services as well as all electric power telemetry. We entered Version 3 when we implemented cost-based electric rates that are designed to make the local grid sustainable.

Looking forward to Version 4.0, we will be using everything we learned and implemented since 1962 to transform the resiliency and reliability of our services. We can now support truly rare and advanced technology that will begin to make our grid smart and self-healing. We are ready to begin the process of installing technology that will recognize fault conditions on our grid, and isolate those faults to a small area, while redirecting power to the un-faulted line sections so as to maintain service to more customers, during and after grid damaging events. This new version of EPB will not arrive quickly. Rather, it is a direction that might well take the next decade to fully implement, but I am excited about sharing these new concepts and potential direction with you at the meeting.
  
Conclusion
Well, that ought to be more than enough to set your head to spinning for this month. Let me know if you have any questions before the meeting.

Monday, April 16, 2018

Coincident Peak Notice

E.P.B. Electric Customers on the Variable Price Rate- We predict the POSSIBILITY for April's peak electric demand to occur on Tuesday, April 17th between 7am & 1pm. This is only a prediction based upon our best guess as to what the combination of all customers in Glasgow will demand from T.V.A. A peak demand hour can occur during any of the maximum of 24 hours of each month during one of our predicted peaks. This is our forecast which is provided as a convenience for E.P.B. customers who wish to receive forecasts. If you want to move to a fixed energy rate without coincident peak demand charges, please contact us at 270-651-8341.
Saturday, April 14, 2018

Coincident Peak Notice

E.P.B. Electric Customers on the Variable Price Rate- We predict the POSSIBILITY for April's peak electric demand to occur on Monday, April 16th between 7am & 1pm. This is only a prediction based upon our best guess as to what the combination of all customers in Glasgow will demand from T.V.A. A peak demand hour can occur during any of the maximum of 24 hours of each month during one of our predicted peaks. This is our forecast which is provided as a convenience for E.P.B. customers who wish to receive forecasts. If you want to move to a fixed energy rate without coincident peak demand charges, please contact us at 270-651-8341.
Thursday, April 12, 2018

Coincident Peak Notice

E.P.B. Electric Customers on the Variable Price Rate- We predict the POSSIBILITY for April's peak electric demand to occur on Friday, April 13th between 12pm & 6pm. This is only a prediction based upon our best guess as to what the combination of all customers in Glasgow will demand from T.V.A. A peak demand hour can occur during any of the maximum of 24 hours of each month during one of our predicted peaks. This is our forecast which is provided as a convenience for E.P.B. customers who wish to receive forecasts. If you want to move to a fixed energy rate without coincident peak demand charges, please contact us at 270-651-8341.
Wednesday, April 4, 2018

Coincident Peak Notice

E.P.B. Electric Customers on the Variable Price Rate- We predict the POSSIBILITY for April's peak electric demand to occur on Thursday, April 5th between 7am & 1pm. This is only a prediction based upon our best guess as to what the combination of all customers in Glasgow will demand from T.V.A. A peak demand hour can occur during any of the maximum of 24 hours of each month during one of our predicted peaks. This is our forecast which is provided as a convenience for E.P.B. customers who wish to receive forecasts. If you want to move to a fixed energy rate without coincident peak demand charges, please contact us at 270-651-8341.
Thursday, March 29, 2018

City of Glasgow and Glasgow EPB are now Certified by PEER!

The Energy and Environment Cabinet (EEC) announced today... that Glasgow EPB has become the first utility in Kentucky to achieve PEER Certification!
Thursday, March 22, 2018

March 27, 2018 Board Meeting



TENTATIVE AGENDA
GLASGOW ELECTRIC PLANT BOARD
MARCH 27, 2018 - 6:00 PM



1. MINUTES OF PREVIOUS MEETING


2. ANALYTICS REPORT FOR MONTH OF FEBRUARY


3. REPORT ON APRIL 2018 FCA


4. REPORT ON RATE DESIGN FUNDAMENTALS


5. REPORT ON COMPARATIVE METRICS


6. CONSIDER NEW LED SECURITY LIGHT RATES


7. CONSIDER RULES AND REGULATIONS CHANGE


8. CONSIDER PEER AGREEMENT


9. NEW/OLD BUSINESS

A. NEW EMPLOYEE - Branson Redford

B. INTERNET CLOUD CONNECTION UPGRADE

10. ADJOURN

MEMORANDUM
                                                                                                                  
                                                                                               
                                                                                     
TO:                       Members of Glasgow Electric Plant Board                 
                                                                                               
FROM:                  William J. Ray, PE                 
                                                                                               
DATE:                  3/22/2018 - 6:00 PM    
                                                                                                                  
SUBJECT:            Board Meeting Information                                          


                                     
Preamble
March has been relatively calm, and that is totally fine with the EPB team. That doesn’t mean that we haven’t accomplished anything though. We’ve made significant progress on our reorganization plans to accommodate the large number of retirements coming up in the next several months. We completed a long-planned upgrade to our internet circuits to the outside world, and we completed our interrogatories associated with the application for PEER certification. We’ve also completed the work to set the new rate changes you approved last month into effect for April 1. It was a busy, but still calm, month!

The main event for this month will be EPB Finance Manager, Melanie Reed’s, annual report on how EPB metrics compare to our peers. This report is based upon an annual report we get from TVA and it is usually quite interesting to the board. As I have done for the last few months, I will be prepared to answer questions about our retail rate design and how we got to where we are today, should anyone want me to go over that again. If not, I will skip those slides.  

The meeting might be a bit long, depending on the level of questions that you have about Melanie’s presentation, so try to grab a snack before you arrive. Now, let’s move on to this month’s agenda!



April 1 FCA
As we continue the third year of our new retail rate designs, April 1 will bring us a decrease in overall power cost due to a decrease in the FCA. The FCA calculation always trails actual TVA fuel expenditures by a couple of months, so April will see us enjoying the relatively mild February and the lower fuel cost attendant thereto. The April 2018 FCA is going to decrease to 1.988 cents per kWh, and that decrease, when blended with our other wholesale costs, will bring about a roughly 2.2% decrease in overall energy costs to us and our customers. As usual, I am attaching the narrative on the FCA from the TVA portal. On April 1, the energy component of our retail rates will be adjusted to reflect this decrease to the wholesale cost of energy.
         
Rate Design Fundamentals

Comparative Metrics
For the last few years we have invited our Finance Manager, Melanie Reed, to the meeting to report on critical metrics about our operation and contrast them with the other TVA distributors like us. Normally this takes place immediately after we get the report from TVA that provides the comparative data on the other LPCs. To that end, Melanie will be joining us this month to deliver this report. 

LED Security Light Rate Recommendation
After kicking around ideas for funding a wholesale conversion of Glasgow’s existing High Pressure Sodium (HPS) street and security lighting fixtures to LED fixtures, no solution seemed immediately viable. So, several months ago we began an organic and more affordable approach to the conversion by simply ceasing to purchase replacement HPS fixtures. Since the HPS fixtures have several predictable modes of failure, we were constantly having to purchase replacement fixtures as the ones in plant failed. We now replace failed HPS fixtures with much more efficient LED fixtures, and that process will lead, over a multi-year period, to the complete conversion without the need for a wholesale replacement program and the large amount of capital such an effort would require.

We began with a program to replace 100 watt HPS fixtures (by far the most common fixture in use in Glasgow), but now we want to expand the effort to include replacements for failing 250 watt and 400 watt HPS fixtures. The plan is to replace them with 154 watt and 247 watt LED fixtures, respectively.

Of course, to do that we need for the board to establish rates for these new fixtures. TVA commonly asks us to complete a worksheet which incorporates the cost of the new fixture, the anticipated kWh consumption, and the predicted maintenance costs. We have performed that work and submitted the proposed rates to TVA for their approval. At the meeting I will ask you to review the proposed rates and approve them subject to TVA’s approval. With that completed, we can extend our replacement program to cover these two existing fixtures such that we can cease purchasing new versions of them.
 
Rules and Regulations Change
Every time we think we have the Rules and Regulations in good shape for a while, we seem to suddenly discover some language that isn’t right, or could be stated better. Such is the case this month.

For those of you who are new to the board, the published Rules and Regulations at http://www.glasgow-ky.com/documents/rulesregs.pdf form the core of what the Board has determined (and TVA regulatory has approved) to be the rules for how Glasgow EPB interacts with its customers. If you have not reviewed the Rules and Regulations in detail, it would be a great thing to do!

One would think that this would be a very stable and static document, but with a good deal of regularity, we find language that doesn’t really reflect what prudent business practices actually dictate at present. When we find those issues, we present them to the Board for consideration. If the Board approves a recommended change, we then must submit that change to TVA for approval before we change the published document.

This month we are concerned with the following language in Section 3. BILLING. A budget billing plan and an "E-Z Pay" plan are available upon request for any residential Customer who has been receiving service at their present location at least eight (8) months. Requests for information may be made in person, by phone, mail, or email (epb@glasgow-ky.com) at the office of the EPB.”

Actually, the budget billing software needs a full twelve months of billing data in order to render an accurate budget billing amount. We recommend that this language be replaced with: A budget billing plan and an "E-Z Pay" plan are available upon request for any residential Customer who has enough billing history to qualify. A Customer who has been receiving service at their present location for at least one (1) year may qualify for this program, and any customer interested in same may make a request for information regarding the specific impact of the budget billing program on their account, such that they might elect to participate.

At the meeting I will recommend that you approve this language change subject to TVA’s approval of same.

PEER Agreement
Back in December, we were contacted by the Commonwealth of Kentucky Energy and Environment Cabinet folks who felt that Glasgow EPB’s efforts to evolve its electric power grid ought to qualify EPB for certification by PEER (Performance Excellence in Electricity Renewal). They offered to support our application for certification and to pay any and all fees required by the agency who owns the PEER certification system, Green Business Certification, Inc. http://peer.gbci.org/

It seemed unwise for us to refuse this overture by the Energy and Environment Cabinet, so we buckled down and spent a lot of January and February producing the 140-page application for PEER certification. It appears that our effort is about to be rewarded because they have now asked us to execute an agreement between GBCI and Glasgow EPB, outlining the rights and responsibilities that may come with being certified. It is our understanding that, if we are successful, Glasgow EPB would become only the second electric utility in North America to receive this honor.

At the meeting I hope to have a contract which meets the approval of Jeff Herbert for you to consider. Right now, we are still working with their standard form agreement and we have asked for a number of changes which they are working through. We should have something for you to consider by Tuesday night.

Reports
We have our first new employee as a part of the process of gearing up to replace the many folks we have retiring over the next few years. Branson Redford joined the team as an Engineering Technician last week. At the meeting I will also have a report on our internet circuits upgrade and a couple of other projects.

Conclusion
Well, that ought to be more than enough to set your head to spinning for this month. Let me know if you have any questions before the meeting.

Wednesday, March 21, 2018

Coincident Peak Notice

E.P.B. Electric Customers on the Variable Price Rate- We predict the POSSIBILITY for March's peak electric demand to occur on Thursday, March 22nd between 7am & 1pm. This is only a prediction based upon our best guess as to what the combination of all customers in Glasgow will demand from T.V.A. A peak demand hour can occur during any of the maximum of 24 hours of each month during one of our predicted peaks. This is our forecast which is provided as a convenience for E.P.B. customers who wish to receive forecasts. If you want to move to a fixed energy rate without coincident peak demand charges, please contact us at 270-651-8341.
Tuesday, March 13, 2018

Coincident Peak Notice

E.P.B. Electric Customers on the Variable Price Rate- We predict the POSSIBILITY for March's peak electric demand to occur on Wednesday, March 14th between 7am & 1pm. This is only a prediction based upon our best guess as to what the combination of all customers in Glasgow will demand from T.V.A. A peak demand hour can occur during any of the maximum of 24 hours of each month during one of our predicted peaks. This is our forecast which is provided as a convenience for E.P.B. customers who wish to receive forecasts. If you want to move to a fixed energy rate without coincident peak demand charges, please contact us at 270-651-8341.
Wednesday, March 7, 2018

Coincident Peak Notice

E.P.B. Electric Customers on the Variable Price Rate- We predict the POSSIBILITY for March's peak electric demand to occur on Thursday, March 8th between 7am & 1pm. This is only a prediction based upon our best guess as to what the combination of all customers in Glasgow will demand from T.V.A. A peak demand hour can occur during any of the maximum of 24 hours of each month during one of our predicted peaks. This is our forecast which is provided as a convenience for E.P.B. customers who wish to receive forecasts. If you want to move to a fixed energy rate without coincident peak demand charges, please contact us at 270-651-8341.
Friday, February 23, 2018

February 27, 2018 Board Meeting





TENTATIVE AGENDA
GLASGOW ELECTRIC PLANT BOARD 
FEBRUARY 27, 2018, 6:00 PM

0.5 SWEAR IN NEW BOARD MEMBER


1. MINUTES OF PREVIOUS MEETING


2. ANALYTICS REPORT FOR MONTH OF JANUARY

3. REPORT ON MARCH 2018 FCA


4. REPORT ON RATE DESIGN FUNDAMENTALS 


5. CONSIDER FULL REPORT ON 2017 RETAIL RATE EFFECTIVENESS


6. CONSIDER RS AND TRS RATE CHANGES TO ACCOMPLISH $5        CUSTOMER CHARGE REDUCTION


7. NEW/OLD BUSINESS

A. RESPONSES TO AUDIT RFP - TURNED OVER TO CITY
8. ADJOURN



MEMORANDUM
                                                                                                                  
                                                                                               
                                                                                     
TO:                       Members of Glasgow Electric Plant Board                 
                                                                                               
FROM:                  William J. Ray, PE                 
                                                                                               
DATE:                  2/22/2018    
                                                                                                                  
SUBJECT:            Board Meeting Information                                          


                                     
Preamble
February is the shortest month of the year, but it finds us trying to accomplish a staggering array of objectives. We completed an expedited application for PEER certification at the behest of the Kentucky Energy and Environment Cabinet (we are waiting to hear on that application’s success), we completed the promised analysis of all of our retail rates (you’ll see all of that at the meeting), and we worked with TVA to get approval for the promised $5 customer charge reduction for the residential customers. That is a lot for one month, especially February!

We will welcome D.T. Froedge to the board this month. I will be prepared to do another rate design review, if anyone wants to hear it again. If not, we will jump straight into the many slides it is going to take to display the findings of our 2016 and 2017 rate effectiveness reviews. When this is done, and when you deal with our recommendations for the $5 customer charge reduction, our list of promises to the Advisory Council and the Glasgow City Council will be complete.

The meeting might be a bit long, depending on the level of questions that you have about my rate presentation, so try to grab a snack before you arrive. Now, let’s move on to this month’s agenda!



March 1 FCA
As we continue the third year of our new retail rate designs, March 1 will bring us a large increase in overall power cost due to an increase in the FCA. The FCA calculation always trails actual TVA fuel expenditures by a couple of months, so March will see us all paying for the extra fuel TVA had to purchase to cover the demands of the extremely cold weather. The March 2018 FCA is going to increase to 2.175 cents per kWh, and that increase, when blended with our other wholesale costs, will bring about a roughly 4% increase in overall energy costs to us and our customers. As usual, I am attaching the narrative on the FCA from the TVA portal. On March 1, the energy component of our retail rates will be adjusted to reflect this decrease to the wholesale cost of energy.
         
Rate Design Fundamentals

Since we recorded that meeting and gave D.T. access to the recording, you all may feel it unnecessary to spend time on that material again. I am fine with that, but I will be prepared to delve back into the subject if anyone thinks it worthwhile.

Retail Rate Effectiveness
At the meeting we will present our findings on the effectiveness of our electric power retail rates for the last year. It is very clear that this sort of review needs to be conducted annually. We found some issues that have now existed for two years, simply because we didn’t get the chance to conduct the review after 2016 ended. We were consumed with the attacks on us, and the need to defend ourselves, during much of 2017, and that relegated the rate review to a lower priority. To complicate matters more, the board acted to create and offer an optional rate which created a new volumetric variable into the equation. As a result, two years elapsed before we got to accomplish the review.

It is not fair to ask board members to become rate design experts, so the presentations we will have at the meeting will not be highly technical. Rather, we will use graphics to illustrate the bottom line findings relative to each of our retail rates. This will still take a considerable number of slides, because we have six retail rates (not counting the outdoor lighting tariff) to review.

I will not be asking you to take action on curing the deficiencies we found in the analysis, yet. We still need to understand what the Kentucky Legislature’s pension reform decisions will do to our need for revenue, along with TVA’s decision on wholesale rates to become effective in October. Action on updating the rates in a way that will produce more revenue will have to come later in the year, when more of the variables are known. However, I do want you to see the kind of changes that will be necessary later in the year as you approach the decision that will be in front of you at the meeting – dealing with the last element of our agreement with the Advisory Council and the City Council – that of reducing the residential customer charge by $5. It is clear that you need to weigh these issues together so that everyone understands the likely flow of rate changes which will occur in 2018 if we are to meet our promises and respond to our fiscal realities.

The $5 Customer Charge Reduction
Last month we thoroughly discussed the tough question of where to collect the revenue necessary to provide the $5 per month customer charge reduction benefit promised in our agreement with the City Council. This month I will present an actual tariff, approved by TVA, to accomplish the directive you gave me at the January meeting.

After considering all of the options, you directed me to create, and seek TVA approval, for a tariff change to our RS and TRS rates, that would collect the revenue necessary to fund the reduction, from the same class of customers that will get the benefit. The vehicle we have chosen to accomplish that task is to increase the kWh adder for delivery by an amount sufficient to collect $5 more through the kWh charge from the average consumer in the RS and TRS residential rate customers. Copies of the first pages of the proposed tariff sheets, showing the proposed changes, are included at the end of this narrative.

The good things about this solution are that it collects the revenue from the same class that enjoys the benefit, so no cross-class subsidy is required, and very low kWh usage customers will pay in less than $5 but still get the full $5 reduction in customer charge.

The unattractive elements of this solution include the fact that this move adds even more volumetric risk to our rates (the very thing we recognized as a danger and took steps to eliminate) and, for customers who use higher levels of kWh, they will pay more in additional kWh cost than the $5 customer charge reduction that they will receive.

These good and bad elements of this decision seem to be necessary for us to finally accomplish each of the elements of the agreements we reached last year. We will discuss the details of this at the meeting, but if you implement the recommendation, everything is in place to effectuate this change on April 1.

To meet the new Kentucky law regarding municipal utilities, I will need to deliver a written report on the rate change to the City on the day after our meeting. Further, I will need to appear at the next meeting of the Glasgow City Council to give a verbal report on the rate change, although the council will not have the power to approve or disapprove of the change.
 

Reports
The Finance Committee of the City of Glasgow asked us to solicit proposals, using our usual RFP process, for an independent audit of Glasgow EPB for the next three fiscal years. We issued the RFP and got proposals from Alexander, Thompson, Arnold and from Carr, Riggs & Ingram. We forwarded those proposals to Brad Groce, the committee chair, and are awaiting their decision on the chosen firm.


Conclusion
Well, that ought to be more than enough to set your head to spinning for this month. Let me know if you have any questions before the meeting.