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Thursday, May 23, 2019

Glasgow EPB May 28, 2019 Regular Meeting





TENTATIVE REGULAR MEETING AGENDA
GLASGOW ELECTRIC PLANT BOARD 
MAY 28, 2019, 6:00 PM

1. APPROVAL OF AGENDA AND ADDITIONS

2. REVIEW AND APPROVE MINUTES OF APRIL 23, 2019 MEETING

3. MOTION TO APPROVE COMPENSATION FOR CO-COUNSEL RON HAMPTON AT THE USUAL AND CUSTOMARY RATES FOR LEGAL COUNSEL OF THE GEPB.

4. IT IS MOVED THE BOARD TERMINATE MR. BILLY RAY AS SUPERINTENDENT OF THE GLASGOW ELECTRIC PLANT BOARD EFFECTIVE JULY 16, 2019, FOR INEFFICIENCY, NEGLECT OF DUTY AND MISFEASANCE BASED UPON THE REASONS STATED IN MY PREVIOUS MOTION MADE AT THE FEBRUARY 2019 AND PLACED IN THE RECORD AT THE APRIL 2019 MEETING (COPY ATTACHED) AND THAT COUNSEL FOR THE GLASGOW ELECTRIC PLANT BOARD BE DIRECTED TO EMPLOY A MEDIATOR, SUBJECT TO MR. RAY’S WILLINGNESS TO PARTICIPATE TO ATTEMPT RESOLUTION OF ANY CLAIMS BY MR. RAY CONCERNING HIS TERMINATION BEFORE THE EFFECTIVE DATE OF JULY 16, 2019 WITH ANY AGREEMENT BEING SUBJECT TO APPROVED BY THE BOARD. 

5. IT IS RESOLVED AND REQUESTED THAT DT FROEDGE RESIGN FROM THE GEPB BOARD AND SUBMIT HIS RESIGNATION TO THE MAYOR IMMEDIATELY. 

6. BROADBAND SERVICES RATE ADJUSTMENTS PRESENTATION

7. BIDDING RESULTS

8.  DISCUSSION OF DISTRIBUTED GENERATION OPTIONS FOR EPB CUSTOMERS.

9.  SUPERINTENDENT’S REPORT
A. JUNE FCA
B. CPD LEDGER
C. AG RULING ON GDT COMPLAINT
D. WINDSTREAM BANKRUPTCY
E. LARGE OUTAGES

10.  ADJOURN  



MEMORANDUM
                                                                                                                  
                                                                                               
                                                                                     
TO:                       Members of Glasgow Electric Plant Board                 
                                                                                               
FROM:                  William J. Ray, PE                 
                                                                                               
DATE:                  5/23/2019    
                                                                                                                  
SUBJECT:            Board Meeting Information                                          


                                     
May Main Topics

Ø  Peak prediction accurate in April
Ø  Consider Rate/Revenue Report for Broadband Products
Ø  Discuss Bid Openings
Ø  Consideration of Terminating Superintendent
Ø  Consider Resolution Asking for Resignation of Board Chairman
Ø  Discussion of Distributed Generation Options
Ø  Reports


Action Items
June 1 FCA
Ø  The June 2019 TVA FCA will decrease to 1.747 cents per kWh. This is the first increase to the FCA we have seen in several months. TVA’s explanation is a bit hard to follow, because they mention mild weather and low sales in April, contributing to lower fuel cost, but then they increase it anyway.   
Ø  On June 1, the energy component of our retail rates will adjust to reflect this anticipated increase to the wholesale cost of energy.
        
Co-Counsel Compensation
Ø  This agenda item is needed to set forth the compensation for Ron Hampton, who was approved as co-counsel to the EPB at the last meeting. This item was proposed by Chairman Froedge, and no additional information is available relative to this matter.

Termination of Superintendent
Ø  This matter was proposed by Chairman Froedge. The only additional information known is presented in the proposed motion by Mr. Froedge, which follows, verbatim.
Ø   IT IS MOVED THE BOARD TERMINATE MR. BILLY RAY AS SUPERINTENDENT OF THE GLASGOW ELECTRIC PLANT BOARD EFFECTIVE JULY 16, 2019, FOR INEFFICIENCY, NEGLECT OF DUTY AND MISFEASANCE BASED UPON THE REASONS STATED IN MY PREVIOUS MOTION MADE AT THE FEBRUARY 2019 AND PLACED IN THE RECORD AT THE APRIL 2019 MEETING (COPY ATTACHED) AND THAT COUNSEL FOR THE GLASGOW ELECTRIC PLANT BOARD BE DIRECTED TO EMPLOY A MEDIATOR, SUBJECT TO MR. RAY’S WILLINGNESS TO PARTICIPATE TO ATTEMPT RESOLUTION OF ANY CLAIMS BY MR. RAY CONCERNING HIS TERMINATION BEFORE THE EFFECTIVE DATE OF JULY 16, 2019 WITH ANY AGREEMENT BEING SUBJECT TO APPROVED BY THE BOARD.


Request the Resignation of Chairman Froedge
Ø  This matter was proposed by Chairman Froedge. The only additional information known is presented in the proposed motion by Mr. Froedge, which follows, verbatim.
Ø  IT IS RESOLVED AND REQUESTED THAT DT FROEDGE RESIGN FROM THE GEPB BOARD AND SUBMIT HIS RESIGNATION TO THE MAYOR IMMEDIATELY.

   
Broadband Services Rate Study and Recommendations
Ø  Since the programmers, who provide the cable television content approved by the Board, have long-term contracts which include annual rate increases, it is imperative that EPB perform an annual review of the expenses and revenue necessary to pay the expenses.  
Ø  This meeting will include that comprehensive review. Normally cable and internet products have their rates adjusted in July. Since we are required to give customers a thirty-day notice before rates are changed, this matter must be considered in May.  
Ø  At the meeting, we will present the results of the study conducted over the last few weeks. The presentation will give you at least four options to choose from, regarding rate changes which will provide us with stable finances to continue providing these services for the next year.


Bid Openings and Recommendations
Ø  We will open bids for office renovations on Friday, May 24. Those bids will be reviewed, and a recommended vendor will be recommended at the meeting.
Ø  These renovations are a part of our ongoing organizational changes necessitated by the large number of retirements which have already occurred, and those that will occur over the next two years.
Ø  We can discuss this in greater detail at the meeting.


Discussion of Distributed Generation Options for Customers in EPB Footprint
Ø  This item was proposed by Secretary/Treasurer Taylor. While no further information is presently available relative to this discussion, the Superintendent will be prepared to facilitate this discussion and answer any questions the Board might have relative to this subject.



Reports
Ø  APRIL METRICS. Superintendent will do a brief review of the performance of the Glasgow EPB metrics for April.
Ø  JUNE FCA. The Superintendent will go over the upcoming change to the Fuel Cost Adjustment for June, as dictated by TVA.
Ø  CPD LEDGER. Since we altered our Variable Rate, at the request of a committee of our customers, to limit our peak predictions to four days per month, we have financial exposure when we miss the correct actual peak hour. To compensate for that exposure, we added a small amount to the wholesale cost of a peak kW, to collect funds to pay for missed predictions. The Superintendent will report of the status of that fund thus far in the fiscal year.
Ø  The Kentucky Attorney General ruled on the appeal of Glasgow Daily Times, regarding their complaint against EPB which alleged violations of Kentucky Open Meetings Law. The ruling found EPB violated the law by failing to respond to the complaint in a timely matter, consistent with the law. The Board might discuss what, if any, response is prudent since the ruling finds the Board acted improperly. This discussion will be led by counsel.
Ø  WINDSTREAM BANKRUPTCY. Windstream Holdings (parent company of Windstream Company in Glasgow) filed Chapter 11 bankruptcy early this year. There is a large outstanding debt which is owed to EPB (about $40,000 now and increasing each month). To protect our interests and work to secure payment, as well as a suitable new relationship with Windstream going forward, I have engaged Scott Bachert, with the firm Kerrick Bachert PSC, to represent us in this matter.
Ø  LARGE OUTAGES. Historically I have given the Board reports when we have a service interruption that impacts over 200 customers. These reports help you field questions about these events, should you be asked. The two events we had in May impacted a total of just over 1100 customers. I look forward to discussing these events at the meeting.


Conclusion

Please let me know if you have any questions before the meeting.

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