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Friday, August 21, 2020

August 25, 2020 Regular EPB Meeting

 August 25, 2020 Regular EPB Meeting

GLASGOW ELECTRIC PLANT BOARD
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
2. CONSIDER MINUTES OF JULY 28, 2020 REGULAR MEETING AND AUGUST 3 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 APPOINTMENT OF NEW EPB COUNSEL FOR LITIGATION
6. CONSIDER MEDIATION AND OTHER ORDERS FROM CIRCUIT COURT
7. PRELIMINARY 2020 RETAIL RATE EFFECTIVENESS REVIEW
8. SUPERINTENDENT’S REPORT
    A. JULY METRICS AND FINANCIAL METRICS REVIEW
    B. SEPTEMBER FCA
    C. CPD LEDGER
    D. PROPOSED TVA BOARD ACTION - AUGUST 27
9. OLD/NEW BUSINESS
A. DISCUSS FORMAT OF FUTURE EPB MEETINGS
10. ADJOURN
August Main Topics
 EPB Operations in Covid-19 Environment and Temporary Changes
 Consideration of Continued Forbearance on Non-Payment Disconnects
 Discuss ramifications of Circuit Court Rulings
 Preliminary review of 2020 retail electric rate effectiveness
The August meeting has a rather long agenda, due to the failure to convene a regular meeting to discuss business in July.
We all know that the present legal status of the Board has changed due to rulings and orders issued by Barren Circuit Court. It is imperative that all members meet to discuss these orders and the essential business of Glasgow EPB. I urge you to attend, such that we can put confrontation and politics aside, and deal with the matters most relative to the EPB mission.
Action Items
September 1 FCA
 The September 2020 TVA FCA will decrease sharply, to 1.271 cents per kWh. This is a sizable decrease in the FCA. COVID influenced July sales, combined with plenty of rain, resulted in far less fuel being used to produce power, and far less power being purchased from neighbors. In fact, TVA’s July fuel costs were the lowest since 2010.
 On September 1, the energy component of our retail rates will adjust to reflect this decrease passed on by TVA.
Covid-19 and Glasgow EPB
 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.
 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.
 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.
 “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.
 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
 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.
 At a recent 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.
 At the meeting I will give you a lot of information about what has happened over the last five 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.
 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.
Appointment of Counsel to Represent EPB in Litigation
 Though this is a difficult and uncomfortable subject, I am placing this on the agenda in order to remind the Board that Judge Alexander has allowed Cole and Moore to withdraw its representation of EPB, but he also granted EPB 60 days to engage new counsel. A copy of the order is attached to this package. You will note that it is simple, and it does not direct EPB to engage new counsel. The order gives the Board 60 days to engage counsel, assuming they feel it proper for EPB to have independent counsel in the action filed against the Board by D.T. Froedge.
Court Ordered Mediation
 In another ruling by Judge Alexander, EPB is ordered to enter mediation in an attempt to settle the litigation already filed, and, hopefully, head off additional litigation relative to the matters well known to the Board, as well as most EPB customers.
 This item will be best discussed with counsel, but I am recommending that it be on the agenda for discussion until the Board has satisfied the order of Judge Alexander.
 It is my understanding that the attorneys involved in this matter have already been discussing who they might all agree on to manage the mediation, further, possible dates have also been discussed.
 Though the order places a stay on further Special Meetings, there is an exception that allows Special Meetings to be called in furtherance of the Mediation ordered.
 Hopefully, Ron Hampton has been included in these discussions and he might be able to fill the Board in on the details.
Preliminary Retail Rates Review
 We made a commitment to an Advisory Committee, and to the City of Glasgow, to conduct annual analysis of our retail electric rates. This is a sound business practice that should be followed, regardless of our commitments, and that review will begin to be shared with you at the August meeting.
 We will likely start off with a brief review of the presentation on the history of the EPB rate evolution, which ought to get everyone on the same page as to where we have been and where previous boards have set our course to follow.
 Melanie Reed will be there to furnish preliminary results of her analysis of the performance of our residential retail rates, since those are usually the most controversial, and your direction on those will give us an idea how you want to handle all of the tariffs.
 It will be the Board’s decision on how we should proceed during September, and maybe October, as we move toward any adjustments necessary to stay the course.
Reports
 July Metrics and Financial Review
 September FCA
 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.
 Proposed TVA Board Actions for August 27
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.

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