TENTATIVE REGULAR MEETING AGENDA

GLASGOW ELECTRIC PLANT BOARD

MARCH 24, 2020, 6:00 PM

1. APPROVAL OF AGENDA AND ANY ADDITIONS

2. CONSIDER MINUTES OF FEBRUARY 25, 2020 MEETING

3. CONSIDER EPB COVID-19 RESPONSE

4. CONSIDER ADDITIONAL RESOLUTION FOR BANK SIGNATURES

5. CONSIDER FLEXIBILITY PILOT PV PROJECT

6. SUPERINTENDENT’S REPORT

A. FEBRUARY METRICS AND FINANCIAL METRICS REVIEW

B. APRIL FCA

C. CPD LEDGER

D. COMMUNITY RELIEF FUNDING UPDATE

E. LSC IMPACT REPORT

7. ADJOURN

TO: Members of Glasgow Electric Plant Board

FROM: William J. Ray, PE

DATE: 3/18/2020

SUBJECT: March Board Meeting Information

March Main Topics

Ø Board Meetings in the Covid-19 Environment and Temporary Changes

Ø Additional Resolution for Altering Bank Signatures

Ø Power Source Flexibility Pilot Project

Action Items

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April 1 FCA

Ø The April 2020 TVA FCA is projected to decrease to 1.430 cents per kWh. This is another small reduction in the FCA. Mild February 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 April 1, the energy component of our retail rates will adjust to reflect this decrease passed on by TVA.

Covid-19 and Glasgow EPB

Ø Service disconnections for non-payment have been discontinued pending Board direction on same. We have also temporarily waived the fee for call-in credit card payments. When the Board considers these matters, you will be asked to give us directions on how long this temporary policy should last. Obviously, for a non-profit like EPB, the additional losses will have to be borne by all customers.

Ø We closed the EPB lobby to the public on Wednesday, March 18. At the same time, we announced the cessation of services to broadband wiring inside customer premises. This is a tough call, as so many of our customers are now huddled into their homes, and totally dependent on the broadband services we provide. At the meeting I will expand on how we are approaching this matter. While I wanted to hold off on these steps until the Board meets, the situation was just too fluid for the team to wait that long.

Ø I am also enclosing an email from TVA, on the subject of waiving service disconnection for non-payment. As you can see, they are giving us precious little leeway on this.

Ø “Social distancing” steps have already been taken by the EPB team along with additional cleaning of the EPB office. Personal protective equipment has been provided to EPB team members who interact directly with the public.

Ø Additional contingency plans are being developed, just awaiting the perceived need to implement them. These include altering work schedules, working from home, and keeping each essential team member and their backup person completely separated.

Ø We look forward to hearing the Board’s perspective on these steps.

Additional Resolutions Requested for Signature Changes

Ø As I predicted, getting some people removed from check-signing authorization and replacing them with new people, is much harder than it should be.

Ø Already, one local bank has asked for a specific resolution (a copy of which is included in the Board package) to be passed by the Board before they honor our desired signatory changes.

Ø At the meeting I will ask you to approve the resolution. I will also update you on the progress at other local banks.

Possible Solar Pilot Project

Ø The new Long-Term Partnership Agreement with TVA includes a provision that would allow us to provide up to 5% of our own electric power.

Ø This provision is exciting, but it is also something we have no experience at doing. In order to gain some experience, we are studying a possible pilot project, one that is manageable from an expense perspective, but robust enough for us to gain experience before moving forward.

Ø We have much to learn about installing and operating a solar array. We also have a lot of software issues to solve relative to metering, billing, and providing information to customers via our portal and the new application we are developing. For all of these reasons, a small pilot project might make a lot of sense.

Ø At the meeting I will bring you up to speed on what we have already learned, and just what sort of pilot project we are contemplating. We look forward to discussing this with you so that we will know your feelings on pursuing this pilot.

Reports

Ø Metrics and Financial Review

Ø April 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 Community Relief Funding Update

- As the Board instructed, we have already delivered our first three monthly payments of $4500 to the agency. This decision is going to turn out to be very timely, in light of the crisis many of our customers find themselves in.

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.

Conclusion

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