Blog Archive

Friday, February 19, 2021

February 23, 2021, Regulary EPB Meeting

 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.

 Cable Programming Committee Appointments

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.

 Appointment of Interim Superintendent

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.


Friday, January 22, 2021

January 26, 2021 EPB Regular Meeting

 January 26, 2021 Regular EPB Meeting

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 DECEMBER 22, 2020 REGULAR MEETING 3. CONSIDER COVID RESPONSE, BAD DEBT RESULTS 4. CONSIDER ENGAGEMENT AGREEMENT WITH FROST BROWN TODD
5. CONSIDER ANY MODIFCATIONS OF COURT ORDERS 6. CONSIDER REPORT ON NEW RETAIL RATE SUGGESTION 7. CONSIDER CABLE PROGRAMMING RECOMMENDATIONS 8. SUPERINTENDENT’S REPORT A. DECEMBER METRICS AND FINANCIAL METRICS REVIEW B. FEBRUARY FCA C. CPD LEDGER D. IMPACT OF CHRISTMAS DAY EXPLOSION IN NASHVILLE 9. OLD/NEW BUSINESS A. DISCUSS FORMAT OF FUTURE EPB MEETINGS 10. ADJOURN

MEMORANDUM

TO:                       Members of Glasgow Electric Plant                                    

FROM:                  William J. Ray, PE                 

                                                      

DATE:                  1/22/2021

SUBJECT:            Board Meeting Information                                          

 January Main Topics

  • 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

Every three years we have to renegotiate Retransmission Consent Agreements with the
broadcasters in Bowling Green. These “negotiations” are always contentious and there is very little negotiation. We are offered the ABC, NBC, CBS, and Fox networks for an outrageous price, and it is then left up to us to take them or leave them.

  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.