GLASGOW ELECTRIC PLANT BOARD Regular Meeting, 6:00 PM

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

   1.  APPROVAL OF AGENDA

   2.  CONSIDER MINUTES OF OCTOBER 27, 2020 REGULAR MEETING

   3.  CONSIDER COVID RESPONSE, RESULTS

   4.  CONSIDER FRAUD POLICY 

   5.  CONSIDER CHANGES TO EPB RULES OF PROCEDURE

   6.  CONSIDER ENGAGEMENT OF OUTSIDE ATTORNEY TO DEFEND BOARD AGAINST            LEGAL  ACTION BY SUPERINTENDENT IN BARREN CIRCUIT COURT

   7.  CONSIDER ACTION ON THE EXPIRATION OF THE TVA FLEXIBILTY AGREEMENT    DEADLINE

   8.  SUPERINTENDENT’S REPORT

A. OCTOBER METRICS AND FINANCIAL METRICS REVIEW

B. DECEMBER FCA

C. CPD LEDGER

D. TVA RATE CHANGE PROPOSAL

E. REPORT ON ILT PAYMENTS

   9.  OLD/NEW BUSINESS

A. DISCUSS FORMAT OF FUTURE EPB MEETINGS

B. CONSIDER PROGRAMMING COMMITTEE RECOMMENDATIONS

   10.   ADJOURN

TO:                       Members of Glasgow Electric Plant Board                 

FROM:                  William J. Ray, PE                 

DATE:                  11/20/2020  

SUBJECT:            November Board Meeting Information                                           

November Main Topics

Ø  EPB Operations in COVID-19 Environment and Results of Resuming Non-Payment Disconnects

Ø  EPB Fraud Policy

Ø  Discuss Changes to EPB Rules of Procedure

Ø  Engage New Defense Counsel

Ø  Potential Action Relative to TVA Flexibility Agreement

Ø  Reports

Ø  Programming Committee Recommendations

The November meeting has a rather short agenda, but the discussions about that agenda might be lengthy.  

We all know that the present legal status of the Board is tough due to rulings and orders issued by Barren Circuit Court. However, the EPB mission is still fixed and it is imperative that all members meet to discuss these matters on the agenda. I urge you to attend, and to approve an agenda so that we can keep moving forward.

Action Items

December 1 FCA

Ø  The December 2020 TVA FCA will decrease to 1.483 cents per kWh. This is a sizable month-to-month decrease. In fact, this is the lowest December FCA in TVA history. COVID influenced October sales were in line with projections, and hydro generation was unusually high. Those factors allowed more load to be served with hydro power, which reduced fuel costs.    

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

COVID 19 Impact on EPB and Results of Resumption of Disconnects

Ø  Service disconnections for non-payment on essential services have now been resumed, using the guidelines you approved last month. At the meeting we will have some metrics on how that resumption has impacted our finances and those of the Community Relief Fund.

Ø  We closed the EPB lobby to the public on Wednesday, March 18, and it is still closed. While we are anxious to reopen the lobby, Barren County’s infection rates are now far higher than they were when we closed the lobby. That means it would still be risky to invite the public into the lobby. We are still in contact with GWC, FRECC, and SCRTC regarding their lobby opening decisions, but we have the smallest team, and thus the most vulnerable to a spread of the virus within our ranks. Right now, we are planning to continue our present safety policies indefinitely.  

Ø  As reported at the last meeting, City of Glasgow was lucky to receive over $1 million in CARES Act funding from the Federal Government. We have asked City of Glasgow to pass a resolution which would authorize our customers, who are in arrears on their accounts with us, to apply for a portion of that funding to help them get back to even. We trust that the City will comply with this request, but as of this writing, we still have gotten no response to our formal letter of request.

EPB Fraud Policy

Ø  Since Lanny White commented on this policy as a deficiency of EPB Internal Control during his report last month, it is on the agenda again for the Board’s consideration.

Ø  Attached to this narrative is a copy of the policy we first proposed over two years ago. Frankly, I have forgotten what problem the Board had with the policy that resulted in it not being approved, but I trust you will review it so that we can consider adopting it at the November meeting.

Ø  In 2018, after the Board declined to adopt the policy, I adapted it to use in our Human Resources policy administration, and I informed each EPB employee that this policy would be part of my administration. We also had each member of the EPB team sign the document, just to make it clear that the policy does apply to them. So, the only remaining step is for the Board to adopt the policy, which will make it also applicable to the Board.

Engagement of New Outside Counsel

Ø  This matter was added by Chairman Froedge, and I have nothing to add in the way of explanation.

TVA Flexibility Agreement Discussion

Ø  This matter was added by Chairman Froedge, and I have nothing to add in the way of explanation.

Possible Changes to EPB Rules of Procedure

Ø  Chairman Froedge has expressed his desire to alter the EPB Rules of Procedure in such a way as to make the Chairman solely responsible for setting the agenda for Board meetings.

Ø  The section of the EPB Rules of Procedure that deals with meeting agendas follows:

o   The Superintendent shall propose the AGENDA to the Board, at least five (5) days prior to a regularly scheduled meeting, and ask the members for additional AGENDA items they might want added.  After a reasonable period, the Superintendent shall publish the AGENDA, with all items proposed by the Superintendent and all Board members.  This shall become the AGENDA for the meeting, absent any action in the meeting to add or delete items. 

Ø  This section will have to be altered to put the Board Chairman in complete control of the agenda, and it is not at all clear to me how to do that. This language will be presented at the meeting so that the Board can consider specific changes to the language that will accomplish the procedure change that they desire.

Reports

Ø  October Metrics and Financial Review

Ø  December 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  Retail Rate Change Proposal Submitted to TVA – Progress

Ø  Report of 2020 In Lieu-of-Tax Payments to Local Agencies

Old/New Business

 I put the matter of deciding whether to go back to a more normal meeting format on the agenda again. We have done some research and will have a clear set of guidelines we would need to follow, should you wish to go back to a face-to-face format for our meetings. You will also need to consider ratifying recent recommendations from the Cable Television Programming Committee.

 Conclusion

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