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.