This month we will meet exclusively via teleconference, with no members physically present and with no physical access available to the public. To provide access in compliance with all applicable laws and rulings, the meeting will be televised on EPB Cable6, and on Facebook (on the Glasgow EPB page at https://www.facebook.com/glasgowepb/)and YouTube (https://www.youtube.com/channel/UCyGfIohxwECtiY9M28IX6EQ). This meets the newest requirements for open meetings during the Covid-19 State Emergency.

TENTATIVE REGULAR MEETING AGENDA

GLASGOW ELECTRIC PLANT BOARD

APRIL 28, 2020, 6:00 PM

1. APPROVAL OF AGENDA AND ANY ADDITIONS

2. CONSIDER MINUTES OF MARCH 24, 2020 MEETING

3. DISCUSS EPB COVID-19 RESPONSE AND RESULTS

4. CONSIDER EPB PARTICIPATION IN TVA COMMUNITY CARE FUND

5. CONSIDER POLICY ON EPB NON-PAY DISCONNECT FORBEARANCE

A. RECOMMENDATION

B. BUDGET IMPACT PROJECTIONS

6. CONSIDER FLEXIBILITY PILOT PV PROJECT

7. SUPERINTENDENT’S REPORT

A. MARCH METRICS AND FINANCIAL METRICS REVIEW

B. MAY FCA

C. CPD LEDGER

D. GRID PERFORMANCE REPORT

8. ADJOURN

TO: Members of Glasgow Electric Plant Board

FROM: William J. Ray, PE

DATE: 4/24/2020

SUBJECT: April Board Meeting Information

April Main Topics

Ø EPB Operations in Covid-19 Environment and Temporary Changes

Ø Consideration of Continued Forbearance on Non-Payment Disconnects

Ø Power Source Flexibility Pilot Project

Action Items

📷

May 1 FCA

Ø The May 2020 TVA FCA will decrease to 1.415 cents per kWh. This is another small reduction in the FCA. Mild March weather, combined with the beginning of the COVID-19 crisis, resulted in 8% less power being sold, compared to projections, which lowered TVA’s cost of fuel – mainly coal. Abundant hydroelectric generation also impacted the fuel cost positively.

Ø On May 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. As a result, our telephone call traffic for cable and internet support, has doubled to over 40 per day, seven days a week.

Ø While TVA is giving us considerable latitude on how long this disconnect forbearance should last, they are determined for us to ultimately collect on all balances owed.

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. The team is working shifts, and some are working at home, such that contact with each other is also limited.

Ø We look forward to reversing these steps and moving back toward our normal operations when officials advise us of the safety of that action.

TVA Community Care Fund Opportunity

Ø TVA has been working hard to help the LPCs mitigate the damage caused to our communities and our customers. Their latest announcement is that they are creating a $2M fund to match on a 1:1 basis, contributions by LPCs to local non-profits who are providing help to LPC customers struggling to cope in this pandemic.

Ø Although EPB has already committed $54,000 per year to Community Relief, participation in the Community Care Fund will not be limited to increasing the contribution to Community Relief. Other non-profits could qualify, and we will review what we know about the other non-profits operating in Glasgow.

Ø In order for us to capture the full $10,000 allocated to Glasgow, the Board will have to commit the matching $10,000, and choose which agency should receive it.

Ø At the meeting I will ask you to consider this and if the Board wants to move forward, choose the agency and authorize Superintendent to complete the application.

When to End Non-Payment Disconnects Forbearance

Ø Since the last meeting we’ve gotten some important experience with the financial impact of our temporary forbearance on non-payment disconnects of electric power and broadband services.

Ø At the meeting I will give you a lot of information about what has happened over the last month. We will discuss actual performance versus the projections we made last month. We will also furnish you with external data on unemployment and the benefits coming to our customers who are impacted by this pandemic.

Ø In order to provide better projections, the Superintendent will present projections based on assumptions as to when the Board might choose to end forbearance on non-payment disconnects, and what terms EPB should allow for giving customers time to bring their account balance back to normal. These assumptions are necessary in order to provide realistic projections, but the decision on ending forbearance is totally up to the Board.

Ø After all of this information is provided, I will ask the Board to give the staff more information on when forbearance should end, or, alternatively, develop other criteria for the EPB to use relative to this matter.

Possible Solar Pilot Project

Ø This item is a repeat from the last meeting, in which the proposal was not adopted, but I was asked to bring it back again this month.

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 March Metrics and Financial Review

Ø May 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 Grid Performance Report

- The Superintendent will review how the electric and broadband networks are performing, given the overnight changes to how those networks are utilized.

Conclusion

Please let me know if you have any questions before the meeting, and prepare for a different meeting experience using Zoom.