This Special meeting will be 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.

This meeting will be 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 AGENDA, 6:00 PM, On EPB Cable 6 and EPB You Tube Channel

1. APPROVAL OF AGENDA AND ANY ADDITIONS

2. CONSIDER MINUTES OF JUNE 30, 2020 SPECIAL MEETING

3. DISCUSS EPB COVID-19 RESPONSE AND RESULTS

4. CONSIDER POLICY ON EPB NON-PAY DISCONNECT FORBEARANCE

A. ORDER FROM GOVERNOR

B. BUDGET IMPACT PROJECTIONS

C. CONSIDER DISCONNECTS ON NON-ESSENTIAL SERVICES

5. CONSIDER RAMIFICATIONS OF CIRCUIT COURT RULINGS

6. SUPERINTENDENT’S REPORT

A. JUNE METRICS AND FINANCIAL METRICS REVIEW

B. AUGUST FCA

C. CPD LEDGER

7. OLD/NEW BUSINESS

A. DISCUSS FORMAT OF FUTURE EPB MEETINGS

8. ADJOURN

MEMORANDUM

TO: Members of Glasgow Electric Plant Board

FROM: William J. Ray, PE

DATE: 7/24/2020

SUBJECT: July Board Meeting Information

July Main Topics

Ø EPB Operations in Covid-19 Environment and Temporary Changes

Ø Consideration of Continued Forbearance on Non-Payment Disconnects

Ø Discuss ramifications of Circuit Court Rulings

Ø

The July meeting has a rather brief agenda – assuming no new items are added.

Of course, we all know that the present legal status of the Board and its officers presents another abnormal situation for the meeting. I urge you to attend anyway, such that we can set those issues aside and deal with the matters most relative to the EPB mission.

Action Items

📷

August 1 FCA

Ø The August 2020 TVA FCA will decrease slightly, to 1.414 cents per kWh. This is a small decrease in the FCA. COVID influenced June sales, combined with mild weather, resulted in far less fuel being used to produce power, and far less power being purchased from neighbors. In fact, TVA’s June fuel costs were near the lowest on record for a June. Abundant hydroelectric generation also impacted the fuel cost positively.

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

Covid-19 and Glasgow EPB

Ø Service disconnections for non-payment have been discontinued pending Board direction, and TVA/PSC directions on same. We have also temporarily waived the fee for call-in credit card payments. The matter became much more complicated a couple of months ago when Governor Beshear issued an order, which forbids utilities (and mentions municipal utilities, like ours, specifically) from resuming normal non-payment disconnects until after he lifts his Emergency Declaration for the state. Obviously, for a non-profit like EPB, the additional losses will have to be borne by all customers. This matter also has federal sovereignty implications since the Governor is usurping TVA’s regulatory role. This matter is very complicated. I will show you some results of this order and it is becoming quite clear, that we have several customers who are amassing a debt that they will have a lot of trouble repaying.

Ø We closed the EPB lobby to the public on Wednesday, March 18, and it is still closed. At the same time, we announced the cessation of services to broadband wiring inside customer premises. Since the number of Barren County COVID-19 cases is growing sharply, we do not see an end to these changes. We have been in contact with GWC, FRECC, and SCRTC regarding their lobby opening decisions. Right now, pending Board approval, we are planning to continue our present safety policies indefinitely.

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. Further, as mentioned above, they are carefully considering how long to cooperate with the Governor’s directive before they take action to re-establish themselves as the sole LPC regulator.

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 has returned to normal shifts.

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

When to End Non-Payment Disconnection 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. At this meeting we will show you some new metrics on how forbearance is building a lot of likely future bad debt.

Ø At the Special meeting we talked about beginning to do disconnects on non-essential services at the homes of customers who have accumulated sizable unpaid balances over the last four months. At this meeting, I will be asking you to consider that recommendation again.

Ø At the meeting I will give you a lot of information about what has happened over the last four months. We will discuss actual performance versus the projections we made in previous meetings. We will also furnish you with external data on unemployment and the benefits coming to our customers who are impacted by this pandemic. Though you have seen these projections before, we will update them with new data and new projections, based on the recent order from the Governor.

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 when that forbearance termination might be allowed by the State. These assumptions are necessary, in order to provide realistic projections, but the decision on ending forbearance will continue to be totally up to the Board.

Rulings Which Might Be Made by Barren Circuit Court Before Meeting

Ø Though this is a difficult and uncomfortable subject, I am creating this marker on the Agenda so that we can discuss, and possibly act on, any rulings and/or orders that the court might issue during a hearing scheduled for July 24.

Reports

Ø June Metrics and Financial Review

Ø August 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.

Old/New Business

I put the matter of deciding whether to go back to a more normal meeting format on the agenda. Since the City Council has gone back to a face-to-face format with the distancing and mask requirements, I thought you might want to consider doing the same.

Conclusion

Please let me know if you have any questions before the meeting. Prepare for another meeting experience using Zoom.