Blog Archive

Thursday, May 23, 2019

Glasgow EPB May 28, 2019 Regular Meeting





TENTATIVE REGULAR MEETING AGENDA
GLASGOW ELECTRIC PLANT BOARD 
MAY 28, 2019, 6:00 PM

1. APPROVAL OF AGENDA AND ADDITIONS

2. REVIEW AND APPROVE MINUTES OF APRIL 23, 2019 MEETING

3. MOTION TO APPROVE COMPENSATION FOR CO-COUNSEL RON HAMPTON AT THE USUAL AND CUSTOMARY RATES FOR LEGAL COUNSEL OF THE GEPB.

4. IT IS MOVED THE BOARD TERMINATE MR. BILLY RAY AS SUPERINTENDENT OF THE GLASGOW ELECTRIC PLANT BOARD EFFECTIVE JULY 16, 2019, FOR INEFFICIENCY, NEGLECT OF DUTY AND MISFEASANCE BASED UPON THE REASONS STATED IN MY PREVIOUS MOTION MADE AT THE FEBRUARY 2019 AND PLACED IN THE RECORD AT THE APRIL 2019 MEETING (COPY ATTACHED) AND THAT COUNSEL FOR THE GLASGOW ELECTRIC PLANT BOARD BE DIRECTED TO EMPLOY A MEDIATOR, SUBJECT TO MR. RAY’S WILLINGNESS TO PARTICIPATE TO ATTEMPT RESOLUTION OF ANY CLAIMS BY MR. RAY CONCERNING HIS TERMINATION BEFORE THE EFFECTIVE DATE OF JULY 16, 2019 WITH ANY AGREEMENT BEING SUBJECT TO APPROVED BY THE BOARD. 

5. IT IS RESOLVED AND REQUESTED THAT DT FROEDGE RESIGN FROM THE GEPB BOARD AND SUBMIT HIS RESIGNATION TO THE MAYOR IMMEDIATELY. 

6. BROADBAND SERVICES RATE ADJUSTMENTS PRESENTATION

7. BIDDING RESULTS

8.  DISCUSSION OF DISTRIBUTED GENERATION OPTIONS FOR EPB CUSTOMERS.

9.  SUPERINTENDENT’S REPORT
A. JUNE FCA
B. CPD LEDGER
C. AG RULING ON GDT COMPLAINT
D. WINDSTREAM BANKRUPTCY
E. LARGE OUTAGES

10.  ADJOURN  



MEMORANDUM
                                                                                                                  
                                                                                               
                                                                                     
TO:                       Members of Glasgow Electric Plant Board                 
                                                                                               
FROM:                  William J. Ray, PE                 
                                                                                               
DATE:                  5/23/2019    
                                                                                                                  
SUBJECT:            Board Meeting Information                                          


                                     
May Main Topics

Ø  Peak prediction accurate in April
Ø  Consider Rate/Revenue Report for Broadband Products
Ø  Discuss Bid Openings
Ø  Consideration of Terminating Superintendent
Ø  Consider Resolution Asking for Resignation of Board Chairman
Ø  Discussion of Distributed Generation Options
Ø  Reports


Action Items
June 1 FCA
Ø  The June 2019 TVA FCA will decrease to 1.747 cents per kWh. This is the first increase to the FCA we have seen in several months. TVA’s explanation is a bit hard to follow, because they mention mild weather and low sales in April, contributing to lower fuel cost, but then they increase it anyway.   
Ø  On June 1, the energy component of our retail rates will adjust to reflect this anticipated increase to the wholesale cost of energy.
        
Co-Counsel Compensation
Ø  This agenda item is needed to set forth the compensation for Ron Hampton, who was approved as co-counsel to the EPB at the last meeting. This item was proposed by Chairman Froedge, and no additional information is available relative to this matter.

Termination of Superintendent
Ø  This matter was proposed by Chairman Froedge. The only additional information known is presented in the proposed motion by Mr. Froedge, which follows, verbatim.
Ø   IT IS MOVED THE BOARD TERMINATE MR. BILLY RAY AS SUPERINTENDENT OF THE GLASGOW ELECTRIC PLANT BOARD EFFECTIVE JULY 16, 2019, FOR INEFFICIENCY, NEGLECT OF DUTY AND MISFEASANCE BASED UPON THE REASONS STATED IN MY PREVIOUS MOTION MADE AT THE FEBRUARY 2019 AND PLACED IN THE RECORD AT THE APRIL 2019 MEETING (COPY ATTACHED) AND THAT COUNSEL FOR THE GLASGOW ELECTRIC PLANT BOARD BE DIRECTED TO EMPLOY A MEDIATOR, SUBJECT TO MR. RAY’S WILLINGNESS TO PARTICIPATE TO ATTEMPT RESOLUTION OF ANY CLAIMS BY MR. RAY CONCERNING HIS TERMINATION BEFORE THE EFFECTIVE DATE OF JULY 16, 2019 WITH ANY AGREEMENT BEING SUBJECT TO APPROVED BY THE BOARD.


Request the Resignation of Chairman Froedge
Ø  This matter was proposed by Chairman Froedge. The only additional information known is presented in the proposed motion by Mr. Froedge, which follows, verbatim.
Ø  IT IS RESOLVED AND REQUESTED THAT DT FROEDGE RESIGN FROM THE GEPB BOARD AND SUBMIT HIS RESIGNATION TO THE MAYOR IMMEDIATELY.

   
Broadband Services Rate Study and Recommendations
Ø  Since the programmers, who provide the cable television content approved by the Board, have long-term contracts which include annual rate increases, it is imperative that EPB perform an annual review of the expenses and revenue necessary to pay the expenses.  
Ø  This meeting will include that comprehensive review. Normally cable and internet products have their rates adjusted in July. Since we are required to give customers a thirty-day notice before rates are changed, this matter must be considered in May.  
Ø  At the meeting, we will present the results of the study conducted over the last few weeks. The presentation will give you at least four options to choose from, regarding rate changes which will provide us with stable finances to continue providing these services for the next year.


Bid Openings and Recommendations
Ø  We will open bids for office renovations on Friday, May 24. Those bids will be reviewed, and a recommended vendor will be recommended at the meeting.
Ø  These renovations are a part of our ongoing organizational changes necessitated by the large number of retirements which have already occurred, and those that will occur over the next two years.
Ø  We can discuss this in greater detail at the meeting.


Discussion of Distributed Generation Options for Customers in EPB Footprint
Ø  This item was proposed by Secretary/Treasurer Taylor. While no further information is presently available relative to this discussion, the Superintendent will be prepared to facilitate this discussion and answer any questions the Board might have relative to this subject.



Reports
Ø  APRIL METRICS. Superintendent will do a brief review of the performance of the Glasgow EPB metrics for April.
Ø  JUNE FCA. The Superintendent will go over the upcoming change to the Fuel Cost Adjustment for June, as dictated by TVA.
Ø  CPD LEDGER. Since we altered our Variable Rate, at the request of a committee of our customers, to limit our peak predictions to four days per month, we have financial exposure when we miss the correct actual peak hour. To compensate for that exposure, we added a small amount to the wholesale cost of a peak kW, to collect funds to pay for missed predictions. The Superintendent will report of the status of that fund thus far in the fiscal year.
Ø  The Kentucky Attorney General ruled on the appeal of Glasgow Daily Times, regarding their complaint against EPB which alleged violations of Kentucky Open Meetings Law. The ruling found EPB violated the law by failing to respond to the complaint in a timely matter, consistent with the law. The Board might discuss what, if any, response is prudent since the ruling finds the Board acted improperly. This discussion will be led by counsel.
Ø  WINDSTREAM BANKRUPTCY. Windstream Holdings (parent company of Windstream Company in Glasgow) filed Chapter 11 bankruptcy early this year. There is a large outstanding debt which is owed to EPB (about $40,000 now and increasing each month). To protect our interests and work to secure payment, as well as a suitable new relationship with Windstream going forward, I have engaged Scott Bachert, with the firm Kerrick Bachert PSC, to represent us in this matter.
Ø  LARGE OUTAGES. Historically I have given the Board reports when we have a service interruption that impacts over 200 customers. These reports help you field questions about these events, should you be asked. The two events we had in May impacted a total of just over 1100 customers. I look forward to discussing these events at the meeting.


Conclusion

Please let me know if you have any questions before the meeting.

Friday, April 19, 2019

April 23, 2019 Glasgow EPB Regular Meeting

Glasgow EPB is committed to publishing its Tentative Agenda, along with some information about that agenda, as we have done for several months after agreeing with City of Glasgow to do so. A problem has arisen in that the customary Tentative Agenda, developed by EPB Superintendent, is presently subject to editing by Board Chairperson Froedge, and that suggested agenda is subject to further suggested changes at the beginning of the meeting, making it virtually impossible for us to publish a dependable agenda in advance. The following agendas represent the two versions proposed for the upcoming April 23 meeting. The first Tentative Agenda is the one customarily proposed by the Superintendent, the second is proposed by Chairperson Froedge and is provided verbatim. We are confident that the Board will correct this confusion at the April Meeting*:




TENTATIVE REGULAR MEETING AGENDA
GLASGOW ELECTRIC PLANT BOARD 
APRIL 23, 2019, 6:00 PM

  
1. SWEAR IN NEW BOARD MEMBER?


2. CONSIDER APPROVAL OF AGENDA


3. CONSIDER MINUTES OF PREVIOUS MEETINGS


4. CONSIDER ADVICE OF COUNSEL REGARDING ERRORS AND OMISSIONS IN PREVIOUS MEETINGS


5. SUPERINTENDENT’S OPERATING REPORT


6. CONSIDER APPOINTMENT OF COMMITTEE TO RECOMMEND REPLACEMENT OF BOARD COUNSEL


7. CONSIDER PROGRAMMING COMMITTEE APPOINTMENT


8. CONSIDER GDT COMPLAINT AND AG RULING


9. REPORTS 

A. BARREN COUNTY PROGRESS MATTER

B. BID OPENINGS

C. RETIREMENTS, NEW HIRES, AND THE EPB PERSONNEL CHART



10. ADJOURN




TENTATIVE AGENDA #2

REGULAR MEETING AGENDA GLASGOW ELECTRIC PLANT BOARD
APRIL 23, 2019


1. SWEAR IN NEW BOARD MEMBER?

2. CONSIDER APPROVAL OF AGENDA AND ADDTIONS

3. CONSIDER MINUTES OF FEBRUARY 19, 2019 MEETING
           (The Chairman would like to consider adding an item that was 
           presented, but left out)

3. CONSIDER MINUTES OF MARCH 25, 2019 MEETING

4. RE-CONSIDER APPOINTMENT OF COMMITTEE TO RECOMMEND REPLACEMENT OF BOARD COUNSEL. CONSIDER APPOINTING RON HAMPTION AS CO-COUNCIL TO WORK WITH JEFF HERBERT UNTIL HE RETIRES IN JUNE

5. SUPERINTENDENT'S OPERATING REPORT

7. CONSIDER PROGRAMMING COMMITTEE APPOINTMENT

9. REPORTS

            A. BID OPENINGS
            B. RETIREMENTS, NEW HIRES, AND THE EPB PERSONNEL CHART

10. ADJOURN

From:
DT Froedge
Chairman GEPB

*It should also be noted that a Board member asked that this agenda, proposed by Chairman Froedge, be modified to include the item: "1. Consider advice of counsel regarding errors and omissions of previous meetings", and he further asked that "item should be at the top of the agenda under new business due to the fact that any action taken may have an impact on other agenda items moving forward."

MEMORANDUM
                                                                                                                  
                                                                                               
                                                                                     
TO:                       Members of Glasgow Electric Plant Board                 
                                                                                               
FROM:                  William J. Ray, PE                 
                                                                                               
DATE:                  4/18/2019    
                                                                                                                  
SUBJECT:            Board Meeting Information                                          


                                     
April Main Topics

Ø  Peak prediction accurate in March
Ø  Consider AG response to open meetings violation appeal by Melinda Overstreet
Ø  Errors and Omissions in March meeting
Ø  Appointment of Board Counsel Selection Committee
Ø  Consider Programming Committee appointments
Ø  Reports



Action Items
May 1 FCA
Ø  The May 2019 TVA FCA will decrease to 1.658 cents per kWh. This is the fourth consecutive small decrease in the FCA. These decreases are afforded by the copious rainfall over the last few months, which is allowing TVA to make more low-cost power from hydroelectric facilities.  
Ø  On May 1, the energy component of our retail rates will adjust to reflect this anticipated decrease to the wholesale cost of energy.
        
Errors and Omissions
Ø  This agenda item is needed to allow the Board Attorney to review items in the last meeting that were apparently intended by the Board, but not technically carried out.
Ø  After the report on errors and omissions, the board might desire to correct the problems by considering certain items, from the last meeting, again.

Appointment of Board Attorney Selection Committee
Ø  Another omission during the last meeting, was the selection of Board members to serve on the Attorney Selection Committee that the Board created.
Ø  Solicitation of interested attorneys was conducted, by sending a letter to each member of the Barren County Bar Association.
Ø  Copies of the responses are included with this narrative.

Cable Television Programming Committee Appointments
Ø  The Programming Committee acts independently of EPB to consider what programming is appropriate for the EPB Cable Television system. The committee makes these determinations and recommends same to the EPB.
Ø  The committee was purposely created to isolate EPB from any potential violation relative to the First Amendment to the U.S. Constitution.
Ø  The committee consists of six members, with staggered terms, in addition to the Superintendent, who acts as Chairperson and liaison between the committee and EPB.
Ø  The terms of Mary Genice Burchett-Bower and Karl Napier expired at the end of 2018. Ms. Burchett-Bower has served two terms and Mr. Napier has served one term.
Ø  The Board acted to reappoint Karl Napier last month. I have contacted Melanie Asriel about her interest in serving on the committee, and she has consented to have you consider her for an appointment to the committee.   
GDT Complaint and AG Ruling
Ø  Although not certain, the Kentucky AG might rule on GDT’s appeal before our meeting. Their appeal to the AG is based on EPB’s failure to properly respond to GDT, as required by law.
Ø  At the last meeting, the Board decided to submit our statements to the AG instead of responding to the GDT complaint directly.
Ø  At the meeting, if we have the AG ruling, you will likely want to take some action in response to the ruling.


Reports
Ø  Since the last meeting, wherein I was directed to demand a retraction of the article in Barren County Progress, that drastically misrepresented our retail electric rates, as compared to those of Kentucky Utilities, there has been no retraction published. I will await further direction from you as to how to pursue this matter.
Ø  We recently opened bids for HVAC maintenance, and I will have a report on these. We solicited bids for landscape maintenance, but got no bids, so we are in the process of repeating that process. We will be soliciting bids soon for some office renovations that are related to the ongoing process of dealing with retirements of EPB team members, hiring replacements, and reconfiguring our organizational structure to match the changing demands of our business and the expectations of our customers. I should be ready to recommend a vendor for these upgrades at the May meeting.
Ø  Windstream bankruptcy filing and potential impact on EPB.


Conclusion


Please let me know if you have any questions before the meeting. 




Friday, March 22, 2019

March 26, 2019 EPB Regular Meeting





REVISED REGULAR MEETING AGENDA
GLASGOW ELECTRIC PLANT BOARD
MARCH 26, 2019, 6:00 PM
 



1. CONSIDER ADOPTING ROBERTS RULES OF ORDER - Newly Revised 11th Edition as the          Board Rules of Order

2. CONSIDER APPROVAL OF AGENDA


3. CONSIDER REPLACEMENT OF BOARD COUNSEL


4. CONSIDER ALLEGATION AND REMEDIES REGARDING OPEN MEETINGS                    VIOLATION(S) CHARGE BY MELINDA OVERSTREET AND GDT


5. CONSIDER ACTION RELATIVE TO DEFAMATORY ARTICLE IN BARREN COUNTY PROGRESS


6. CONSIDER PROGRAMMING COMMITTEE APPOINTMENTS


7. REPORTS

A. COMPREHENSIVE REPORT ON EPB RATE DESIGN HISTORY AND FINDINGS

B. BOND ISSUANCE CLOSING

C. EMAIL SERVER ATTACKS


8. ADJOURN




MEMORANDUM
                                                                                                                  
                                                                                               
                                                                                     
TO:                       Members of Glasgow Electric Plant Board                 
                                                                                               
FROM:                  William J. Ray, PE                 
                                                                                               
DATE:                  3/21/2019    
                                                                                                                  
SUBJECT:            Board Meeting Information                                          


                                     
March Main Topics

Ø  Peak prediction missed due to missing a peak on February 1 that was not eclipsed during the rest of the month
Ø  Consider formal open meetings violation complaint by Melinda Overstreet
Ø  Receive comprehensive report on the five-year history of EPB rate design decisions
Ø  Consider options regarding defamatory article in Barren County Progress
Ø  Consider Programming Committee appointments
Ø  Reports



Action Items
March 1 FCA
Ø  The April 2019 TVA FCA will decrease to 1.680 cents per kWh. This is the third consecutive small decrease in the FCA. These decreases are afforded by the copious rainfall over the last few months, which is allowing TVA to make more low-cost power from hydroelectric facilities.  
Ø  On April 1, the energy component of our retail rates will adjust to reflect this anticipated decrease to the wholesale cost of energy.
        
Respond to Open Meetings Complaint by Melinda Overstreet
Ø  This is the matter that was not acted upon at the last meeting.
Ø  Melinda agreed to extend the time allotted for a response to an Open Meetings complaint, to this meeting. Since another grace period is unlikely to be granted, this matter should be addressed at this meeting.

Presentation of the history of data and board decisions that led to EPB retail electric rate changes 2014-2019
Ø  This discussion will be led by William Ray and other members of the EPB staff. It will be a comprehensive review of how previous boards received reports on EPB trends and challenges, and how they reacted to that data to transform retail electric rates.
Ø  Completion of the report will be dependent upon the questions and concerns raised by the board. This item might carry forward into future meetings.

Consideration of possible Board actions relative to recent article regarding electric rates in Barren County Progress
Ø  Several outrageous and inaccurate claims about EPB electric rates as they compare to Kentucky Utilities Company, and to statewide averages, were made at the top of the front page of the March 14, 2019 edition.
Ø  The EPB team dropped what we were doing and set out to research the claims made and the conclusions reached, relative to rates, in the article. We discovered that the website used for most of the data was more than five years out of date, and that all the conclusions reached in the article were wrong by very wide margins.
Ø  A copy of a letter to Jeff Jobe is included in board package. It points out the errors, and the damage done to EPB through his defamatory statements.
Ø  Jobe’s response is also attached.  Until we see how his story, referenced in the letter, is written, we do not know if he is retracting his previous false and defamatory statements. He makes, yet again, a request for a report that is vague and impossible to interpret, but we may make some guesses at what he might be attempting to ask for; and provide that.
Ø  At the meeting we may, or may not, have sufficient understanding of his response to our demand, such that you can determine a course of action.


Cable Television Programming Committee Appointments
Ø  The Programming Committee acts independently of EPB to consider what programming is appropriate for the EPB Cable Television system. The committee makes these determinations and recommends same to the EPB.
Ø  The committee was purposely created to isolate EPB from any potential violation relative to the First Amendment to the U.S. Constitution.
Ø  The committee consists of six members, with staggered terms, in addition to the Superintendent, who acts as Chairperson and liaison between the committee and EPB.
Ø  The terms of Mary Genice Burchett-Bower and Karl Napier expired at the end of 2018. Ms. Burchett-Bower has served two terms and Mr. Napier has served one term.
Ø  Action on this item is needed this month.  


 Reports
Ø  Information on recent, and ongoing hacking attacks on the Glasgow-ky.com mail server, and information relative to the bond closings on March 5, will be provided at the meeting.


Conclusion


Please let me know if you have any questions before the meeting.