Thursday, February 20, 2020
February 25, 2020 Regular EPB Meeting, 6:00 PM
3:25 PM | 
Posted by
Billy Ray |
TENTATIVE AGENDA
1. APPROVAL OF AGENDA AND ANY ADDITIONS
2. CONSIDER MINUTES OF JANUARY 28, 2020 MEETING
3. CONSIDER BOARD OFFICER ELECTIONS POLICY
4. CONSIDER PAD MOUNTED TRANSFORMER PURCHASE
5. CONSIDER TVA LONG TERM RELATIONSHIP AGREEMENT UPDATE
6. CONSIDER CHANGES TO RULES AND REGULATIONS
7. SUPERINTENDENT’S REPORT
A. DECEMBER METRICS AND FINANCIAL METRICS REVIEW
B. MARCH FCA
C. CPD LEDGER
D. WINDSTREAM BANKRUPTCY UPDATE
E. COMMUNITY RELIEF FUNDING UPDATE
F. LARGE OUTAGE REPORT
G. LSC IMPACT REPORT
H. TECHNOLOGY DEMONSTRATION
8. ADJOURN
MEMORANDUM
TO: Members of Glasgow
Electric Plant Board
FROM: William J. Ray, PE
DATE: 2/20/2020
SUBJECT: February Board Meeting Information
February
Main Topics
Ø
Board
Officer Elections Policy
Ø Pad Mount Transformer Purchase
Ø
TVA
Long Term Relationship Agreement Update
Ø Rules and Regulations Changes
Action Items
March 1 FCA
Ø The March 2020 TVA FCA
is projected to decrease to 1.627 cents per kWh. This is another small
reduction in the FCA. Mild January weather resulted in less power being
generated, which lowered TVA’s cost of fuel – mainly coal. Abundant
hydroelectric generation also impacted the fuel cost positively.
Ø On March 1, the energy
component of our retail rates will adjust to reflect this decrease passed on by
TVA.
Pad Mount
Transformer Purchase
Ø Growth of production capacity at Chuhatsu brings about the need for a
bigger power contract and additional transformation capacity.
Ø An additional 2000 kVA, 277/480v., three phase unit is needed.
Ø We purchase units like this through a cooperative transformer
design/pricing group purchasing arrangement, with fixed pricing.
Ø The present group price for the needed unit is $24,343. I will ask the
Board to approve this purchase.
EPB Board
Officer Election Policy
Ø
Until the last few
years, there was little turnover of EPB Board membership, and there has never
been a stated Board policy regarding the frequency of officer elections, nor
the term of elected officers.
Ø
Since turnover of
Board membership is now common, it seems that the Board should institute a
policy on officer elections and terms of office.
Ø
I will not suggest
what the policy should be, but if you adopt one, it will make it far easier for
the Superintendent to plan appropriate agendas to include whatever election
frequency that the Board chooses.
TVA Long
Term Partnership Agreement Update
Ø Since the recently executed agreement has a Most Favored Nations clause,
any changes to the original agreement that TVA offers any LPC, must also be
offered to all LPCs.
Ø Enclosed in the Board package is a recent marked up copy of the agreement
wherein TVA has offered some enhancements to the agreement. These changes would
seem to improve the agreement from the EPB perspective, but that determination
is up to the Board.
Ø If you are okay with the changes, we need to do nothing and the agreement
between EPB and TVA will automatically be updated in 90 days. Should the Board
elect not to receive the new benefit of the proposed change, we must notify TVA
that we want to stand on the existing agreement language, within 90 days.
Rules and
Regulations Changes
Ø One of the biggest
responsibilities of the Board is to deliberate on what the General Schedule of
Rules and Regulations should contain. These are the rules that inform our
customers how we do business, and they form the instructions for the EPB team
to operate under. While these rules must also be approved by TVA, it is good to
review them often, just to make sure that changing conditions match up with our
published Rules and Regulations.
Ø This month we want to
conduct such a review and I will recommend a few changes. A marked-up set of
those recommended changes is included with this package.
Ø At the meeting we will discuss
these recommendations. Some of the proposed changes are intended to underscore
things we already do, but which are not clear enough in the document. For
example, we often hear that EPB should separate electric and cable billing by
sending out separate bills. While we do not spend the extra money for a second
bill, we do clearly delineate electric bill payment from other broadband
services, and we never terminate electric service when the electric portion of
the bill is paid. This accomplishes the same thing, without the redundant
billing. That is one of the clarifications we are recommending.
Ø Another refrain we hear
fairly often, is that EPB should allow customers to pick their own due date. We
have been doing that for over a decade, but even though we explain that often
in our lobby, it is not sufficiently addressed in the present iteration of the
Rules and Regulations, so we want to correct that.
Ø We are also suggesting
other changes, especially relative to the i-Pay product. A few years of
administering this product have revealed some minor changes and clarifications
that should be presented in the Rules and Regulations, and they are shown for
your consideration.
Ø Please review the
proposed changes and be prepared to discuss same at the meeting. If you concur
with the recommendations, we will still need to pass them by TVA before they
become effective.
Reports
Ø
Metrics and Financial
Review
Ø
March 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. We are beginning a
new year of this reporting, and so far, the fund is in acceptable shape due to overall
accuracy of peak predictions.
Ø Windstream Bankruptcy Update
- There is good news! Windstream is now current on all electric accounts.
They made a large payment on the pre-petition debt as well, and they have paid
the 2019 and 2020 pole rental amounts (nearly $80,000 total). It seems that
Scott Bachert found the right way to approach them.
Ø Community Relief Funding Update
- As the Board instructed, we have already delivered our first monthly
payment of $4500 to the agency. The letter attached to this package was sent to
the agency to explain your plans and the conditions you placed on the
donations.
Ø Large Outages Report
- I normally give a report on what happened whenever a circuit locks out
for an extended period. These outages might impact 200-700 customers, and it is
just good for the Board to hear how these events unfold. At the meeting, I will
have a report on a couple of circuit lockouts in the last month.
Ø LSC Financial Impact on
EPB
- The Superintendent will review potential impact of the LSC announcement
on EPB finances, and how EPB non-volumetric rates have limited EPB exposure.
Ø Technology Demonstration
- In the past, before the boardroom contained so much strife, I used to
regularly give the Board a demonstration of the latest technology we are
studying for our customers. This month we will return to that habit and
demonstrate some of the latest video formats. See https://en.wikipedia.org/wiki/8K_resolution
for background
information.
Conclusion
Please let me know if
you have any questions before the meeting.
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