TENTATIVE REGULAR MEETING AGENDA

GLASGOW ELECTRIC PLANT BOARD

JANUARY 28, 2020, 6:00 pm

1. APPROVAL OF AGENDA AND ANY ADDITIONS

2. CONSIDER MINUTES OF DECEMBER 17, 2019 MEETING

3. CONSIDER WINDSTREAM BANKRUPTCY MATTER - SCOTT BACHERT

4. CONSIDER BOARD’S WISHES FOR RATE DESIGN TO DISTRIBUTE TVA 3.1% CREDIT AND POSSIBLE CONTRIBUTION TO COMMUNITY RELIEF

5. CONSIDER OFFICIAL CUSTODIAN OF RECORDS RESOLUTION

6. PROGRAMMING COMMITTEE RECOMMENDATIONS AND APPOINTMENTS

7. CONSIDER CHECK SIGNING AUTHORIZATIONS

8. SUPERINTENDENT’S REPORT

A. DECEMBER METRICS AND FINANCIAL METRICS REVIEW

B. FEBRUARY FCA

C. CPD LEDGER

D. LSC REPORT

9. ADJOURN

MEMORANDUM

TO: Members of Glasgow Electric Plant Board

FROM: William J. Ray, PE

DATE: 1/24/2020

SUBJECT: Board Meeting Information

January Main Topics

Ø Windstream Bankruptcy

Ø Discuss Options for 3.1% Credit Disbursement

Ø Official Custodian of Records

Ø Programming Committee Matters

Ø Check Signing Authorizations

Action Items

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February 1 FCA

Ø The February 2020 TVA FCA is projected to decrease to 1.637 cents per kWh. This is the lowest FCA for a February in seven years, due to lower purchased power and natural gas costs, and abundant hydroelectric generation.

Ø On February 1, the energy component of our retail rates will adjust this decrease passed on by TVA.

Discussion of Windstream Bankruptcy Matter

Ø This item is tentative, as it might resolve itself before the meeting.

Ø Scott Bachert, with the firm Kerrick Bachert, PSC, represents us in this matter, and will be in attendance, if necessary, at the meeting to brief the Board.

Ø We are pursuing about $40K in unpaid account balances pre-petition, and Scott will discuss ways to improve our pursuit of payment.

Ø We are also suffering from unpaid accounts in the post-petition environment this year. Our normal option would be to terminate service, which would eventually end phone service in Glasgow. Scott will also give us his advice on that matter.

EPB Options for Dispersing the 3.1% Wholesale Credit from TVA

Ø With the execution of the TVA Long Term Partnership Agreement in November, EPB is receiving a 3.1% wholesale bill credit from TVA each month (amounting, on average, to something over $40,000 per month with present rates).

Ø The Board asked Superintendent to ascertain the acceptable “De Minimis” amount that TVA would allow EPB to give to Community Relief, in furtherance of their mission to help low-income households weather economic emergencies. That amount has been stipulated by TVA at $56K per year (as shown in attached email).

Ø Due diligence has also been performed relative to Community Relief, and some of the information about them is also included in the Board meeting package.

Ø We’ll also need to discuss the possible impact of the LSC closing on EPB net income. Some of the credit might need to be used to cover that loss.

Official Custodian of Records Discussion

Ø Repetitive Open Records Requests filed by a local newspaper have resulted in a review of EPB policies relating to open records.

Ø Some weaknesses have been detected and advice of counsel has resulted in a recommendation that Board policy should be established to clarify EPB’s policy and to make sure EPB is compliant with all Kentucky statutes and rules attendant thereto.

Ø Recommended changes will be proposed at the meeting that will bring EPB into full “letter of the law” compliance, while making it clear that all Open Records Request responses will come from the official custodian of records for EPB, and no one else.

Programming Committee Issues

Ø An agreement was reached between the Cable Cooperative and Fox for continued carriage of Fox News and a few other channels. The Programming Committee recommends that the Board accept the terms and continue carriage of this programming.

Ø At the meeting we will report on the rate impact that this new agreement will have (it is actually quite small), and we will give you some information about the other contracts which must be renegotiated during 2020.

Ø You will also be reminded that the terms of Petie McLean and Jodi Crane will expire this month. You will need to choose new members of the committee, or, in the alternative, appoint them to new terms.

Check Signing Authorizations

Ø The most recent audit report included a new recommendation to remove Melanie Reed from the list of those approved to sign EPB checks for payment, as an enhancement to internal control. To accomplish this, and to prepare for likely upcoming retirements, the Board will be asked to approve a new list of approved signatories.

Reports

Ø Metrics and Financial Review

Ø February FCA

Ø CPD Charge Reserve Fund Status

- kW demand markup was implemented two years ago, to cover TVA wholesale cost for missed peak predictions

- Updated calculations will be presented at the meeting if available. The fund is in acceptable shape due to overall accuracy of peak predictions, but the problems with accuracy in 2019 have hurt the fund.

Ø LSC Financial Impact on EPB

- Should this matter not be covered under an earlier agenda item, the Superintendent will review potential impact of the LSC announcement on EPB finances

Conclusion

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