February 23, 2021, Regulary EPB Meeting
11:02 AM | 
Posted by
Billy Ray |
TENTATIVE REGULAR MEETING AGENDA GLASGOW ELECTRIC PLANT BOARD JANUARY 26, 2021 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 https://www.facebook.com/glasgowepb/
1. APPROVAL OF AGENDA
2. CONSIDER MINUTES OF JANUARY 26, 2021 REGULAR MEETING AND SPECIAL MEETINGS
3. CONSIDER COVID RESPONSE, BAD DEBT RESULTS
4. CONSIDER VEHICLE REPLACEMENT BIDS
5. CONSIDER APPOINTMENTS TO CABLE PROGRAMMING COMMITTEE
6. CONSIDER APPOINTMENT OF INTERIM SUPERINTENDENT MARCH 1
7. SUPERINTENDENT’S REPORT
A. JANUARY METRICS AND FINANCIAL METRICS REVIEW
B. MARCH FCA
C. CPD LEDGER
D. IMPACT OF WINTER STORMS - LARGE OUTAGES
8. OLD/NEW BUSINESS
A. DISCUSS FORMAT OF FUTURE EPB MEETINGS
9. ADJOURN
MEMORANDUM
TO: Members of Glasgow
Electric Plant Board
FROM: William J. Ray, PE
DATE: 2/19/2021
SUBJECT: Board Meeting Information
February
Main Topics
Ø EPB and COVID-19 Bad Debt Results
Ø Review Bids on Vehicle Replacement
Ø
Appointments
to Programming Committee
Ø
Appointment
of Interim Superintendent
Ø
Reports
Action Items
March 1 FCA
Ø The March 2021 TVA FCA
is projected to increase to 1.536 cents per kWh.
Ø In January, energy
sales were higher than projected, while available hydro power was reduced. Coal
generation was also below normal due to forced outages. Higher purchases of
power from neighbors then produced this increase in fuel cost.
Ø On March 1, the energy component of our retail rates will adjust to reflect this change.
Vehicle
Replacement Bids
Ø EPB Unit #4 has reached the economic and reliability end of its life. We
drafted specifications for a replacement an opened bid on February 5.
Ø We were disappointed to only get one bid, as General Motors had
apparently already ended production of 2021 units. However, the bid from Gillie
Hyde Auto Group was a good one that we can recommend accepting.
Ø At the meeting we will review the bid and the options we have from
selling the old unit when the new one arrives.
Ø
The
three-year terms of Beverly Vance and Terrell Alexander expires at the end of January.
Ø
Both
have expressed a willingness to serve another term, should you wish to appoint
them.
Ø
At
the Special meeting on February 11, the Board reached an agreement with me for
my stepping down as Superintendent on March 1, 2021.
Ø
The
position of Superintendent of EPB is one which must be filled in order to
satisfy Kentucky law and the Power Contract with TVA.
Ø
In
order to remain in compliance with those requirements, the Board should appoint
someone to fill that role, even if that appointment is only on an interim
basis.
Reports
Ø
Metrics and Financial
Review
Ø
March 2021 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 if available. The
fund is in acceptable shape due to overall accuracy of peak predictions, but the
problems with accuracy in 2019 and 2020 have hurt the fund.
Ø Large Outages relative
to recent extreme weather
Old/New Business
Ø Discuss Format of Future EPB Meetings
Conclusion
Please let me know if you have any questions before the meeting.
January 26, 2021 EPB Regular Meeting
January 26, 2021 Regular EPB Meeting
MEMORANDUM
TO: Members of Glasgow Electric Plant
FROM: William J. Ray, PE
DATE: 1/22/2021
SUBJECT: Board Meeting Information
- Ø EPB and COVID-19 Bad Debt Results
- Ø Review Engagement of Frost Brown Todd
- Report on New Electric Retail Rate Directive
- Cable Television Programming Recommendation
- ØReports
Action Items
February 1 FCA
Ø The February 2021 TVA FCA is projected to decrease to 1.494 cents per kWh. Continued abundant hydro power capacity and reduced energy sales due to the COVID impact, resul another record low FCA number. On February 1, the energy component of our retail rates will adjust to reflect this change.
Engagement Agreement with Frost Brown Todd
Ø A copy of the proposed agreement is attached to this narrative. Since
this agreement was not available when the Board acted to engage this firm, some
members might find the terms of the agreement shocking. At the meeting, the
Board can review the terms and decide whether to propose changes, ratify the
agreement as it stands, or cancel it entirely.
Ø Beyond just the agreement, we have asked the firm for some additional
detail on what the invoiced costs to EPB are to date, and we also asked them
for some background information on their work for other utilities. I hope that
will be provided for your consideration, but I do not have it yet.
Court Orders
This item is inserted as a place-keeper. One new order has been issued by Judge
Alexander this week, and it is possible that more will follow. If there are any
issues that need to be addressed by the Board in response, this item will allow
same.
Report on Study of Board Recommended Retail Electric Rate Change
Ø
At the last meeting the Board issued a directive for my team to develop and report
on a new retail electric rate initiative. The Board issued several criteria for
the new rate concept, which set up the framework for the rate to be studied.
The EPB team applied FY 2020 consumption records for all non-industrial customers,
and produced bill impacts for all customers, using the criteria given by Board
action. At the meeting, these impacts will be revealed for the Board’s
consideration.
The drastic bill impacts illustrate the conclusions reached by TVA when they
considered this new rate architecture. The proposal, while certainly simple,
fails on other rate goals. This rate is not cost-based, and it is discriminatory.
Further, the rate passes along no variable pricing signals.
One of the largest problems with the proposal is that widely different classes of
customers are thrown into one super-tariff, which really upsets the stability
of the tariff, and brings about drastic positive and negative bill impacts. My
team is working hard to produce graphics that help explain this problem. We
look forward to sharing this information at the meeting, and getting your
orders on how to proceed.
Programming Committee Recommendations
As usual, the offer from WBKO came in at the very last minute before the contract
was set to expire on 12.31. We put together a Special Programming Committee
meeting to consider the offer. Luckily it was quite similar to what we had
predicted when we proposed our February 1 rate adjustment. At the meeting we
will look at the final numbers and consider the Programming Committee’s recommendation.
At the meeting, you will also be asked to consider appointments to the Programming
Committee. The terms of Beverly Vance and Terrell Alexander are expiring on
February 1.
Reports
Metrics and Financial Review
February 2021 FCA
CPD Charge Reserve Fund
Status
- kW demand markup was implemented three years ago, to cover TVA wholesale cost for missed peak predictions
- Updated calculations will be presented at the meeting if available. The fund is in acceptable shape due to overall accuracy of peak predictions, but the problems with accuracy in 2019 and 2020 have hurt the fund.
Ø Christmas Morning
Explosion in Nashville – Impact on EPB Customers
Old/New
Business
Ø Discuss Format of Future EPB Meetings
Conclusion
Please let me know if you have any questions before the meeting.