Blog Archive

Wednesday, March 18, 2020

March 24, 2020 Regular EPB Board Meeting

NOTICE!
This month we will need to meet while observing the CDC recommended social separation. To do business, we need three board members. So, if only three come, and if we limit other attendees to me and Cody and Jonathan (operating the cameras), along with Amy to help with the minutes, we should be able to do business and keep separated. Our meetings are already televised on EPB Cable6, and on Facebook (on the Glasgow EPB page at https://www.facebook.com/glasgowepb/)and YouTube (https://www.youtube.com/channel/UCyGfIohxwECtiY9M28IX6EQ), and this meets the newest requirements for open meetings during the Covid-19 State Emergency. We should also be able to come up with a way to connect the other two board members by telephone so that they can participate in discussion.
While there are may be elements of this proposed meeting format that do not meet the letter of the law, I don’t think anyone can suggest that we are not trying to honor the spirit of the laws, in a bizarre situation.
Thank you for working with us to minimize our contact with each other, while conducting the critical EPB business. We will offer you an even better solution in April, one that is fully compliant with the latest State guidelines.

TENTATIVE REGULAR MEETING AGENDA
GLASGOW ELECTRIC PLANT BOARD
MARCH 24, 2020, 6:00 PM
1. APPROVAL OF AGENDA AND ANY ADDITIONS
2. CONSIDER MINUTES OF FEBRUARY 25, 2020 MEETING
3. CONSIDER EPB COVID-19 RESPONSE
4. CONSIDER ADDITIONAL RESOLUTION FOR BANK SIGNATURES
5. CONSIDER FLEXIBILITY PILOT PV PROJECT
6. SUPERINTENDENT’S REPORT
A. FEBRUARY METRICS AND FINANCIAL METRICS REVIEW
B. APRIL FCA
C. CPD LEDGER
D. COMMUNITY RELIEF FUNDING UPDATE
E. LSC IMPACT REPORT
7. ADJOURN

TO: Members of Glasgow Electric Plant Board
FROM: William J. Ray, PE
DATE: 3/18/2020
SUBJECT: March Board Meeting Information
March Main Topics
ร˜ Board Meetings in the Covid-19 Environment and Temporary Changes
ร˜ Additional Resolution for Altering Bank Signatures
ร˜ Power Source Flexibility Pilot Project
Action Items
๐Ÿ“ท
April 1 FCA
ร˜ The April 2020 TVA FCA is projected to decrease to 1.430 cents per kWh. This is another small reduction in the FCA. Mild February weather resulted in less power being generated, which lowered TVA’s cost of fuel – mainly coal. Abundant hydroelectric generation also impacted the fuel cost positively.
ร˜ On April 1, the energy component of our retail rates will adjust to reflect this decrease passed on by TVA.
Covid-19 and Glasgow EPB
ร˜ Service disconnections for non-payment have been discontinued pending Board direction on same. We have also temporarily waived the fee for call-in credit card payments. When the Board considers these matters, you will be asked to give us directions on how long this temporary policy should last. Obviously, for a non-profit like EPB, the additional losses will have to be borne by all customers.
ร˜ We closed the EPB lobby to the public on Wednesday, March 18. At the same time, we announced the cessation of services to broadband wiring inside customer premises. This is a tough call, as so many of our customers are now huddled into their homes, and totally dependent on the broadband services we provide. At the meeting I will expand on how we are approaching this matter. While I wanted to hold off on these steps until the Board meets, the situation was just too fluid for the team to wait that long.
ร˜ I am also enclosing an email from TVA, on the subject of waiving service disconnection for non-payment. As you can see, they are giving us precious little leeway on this.
ร˜ “Social distancing” steps have already been taken by the EPB team along with additional cleaning of the EPB office. Personal protective equipment has been provided to EPB team members who interact directly with the public.
ร˜ Additional contingency plans are being developed, just awaiting the perceived need to implement them. These include altering work schedules, working from home, and keeping each essential team member and their backup person completely separated.
ร˜ We look forward to hearing the Board’s perspective on these steps.
Additional Resolutions Requested for Signature Changes
ร˜ As I predicted, getting some people removed from check-signing authorization and replacing them with new people, is much harder than it should be.
ร˜ Already, one local bank has asked for a specific resolution (a copy of which is included in the Board package) to be passed by the Board before they honor our desired signatory changes.
ร˜ At the meeting I will ask you to approve the resolution. I will also update you on the progress at other local banks.
Possible Solar Pilot Project
ร˜ The new Long-Term Partnership Agreement with TVA includes a provision that would allow us to provide up to 5% of our own electric power.
ร˜ This provision is exciting, but it is also something we have no experience at doing. In order to gain some experience, we are studying a possible pilot project, one that is manageable from an expense perspective, but robust enough for us to gain experience before moving forward.
ร˜ We have much to learn about installing and operating a solar array. We also have a lot of software issues to solve relative to metering, billing, and providing information to customers via our portal and the new application we are developing. For all of these reasons, a small pilot project might make a lot of sense.
ร˜ At the meeting I will bring you up to speed on what we have already learned, and just what sort of pilot project we are contemplating. We look forward to discussing this with you so that we will know your feelings on pursuing this pilot.
Reports
ร˜ Metrics and Financial Review
ร˜ April FCA
ร˜ 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.
ร˜ Community Relief Funding Update
- As the Board instructed, we have already delivered our first three monthly payments of $4500 to the agency. This decision is going to turn out to be very timely, in light of the crisis many of our customers find themselves in.
ร˜ LSC Financial Impact on EPB
- The Superintendent will review potential impact of the LSC announcement on EPB finances, and how EPB non-volumetric rates have limited EPB exposure.
Conclusion
Please let me know if you have any questions before the meeting.
Thursday, February 20, 2020

February 25, 2020 Regular EPB Meeting, 6:00 PM

TENTATIVE AGENDA
1. APPROVAL OF AGENDA AND ANY ADDITIONS
2. CONSIDER MINUTES OF JANUARY 28, 2020 MEETING
3. CONSIDER BOARD OFFICER ELECTIONS POLICY
4. CONSIDER PAD MOUNTED TRANSFORMER PURCHASE
5. CONSIDER TVA LONG TERM RELATIONSHIP AGREEMENT UPDATE
6. CONSIDER CHANGES TO RULES AND REGULATIONS
7. SUPERINTENDENT’S REPORT
A. DECEMBER METRICS AND FINANCIAL METRICS REVIEW
B. MARCH FCA
C. CPD LEDGER
D. WINDSTREAM BANKRUPTCY UPDATE
E. COMMUNITY RELIEF FUNDING UPDATE
F. LARGE OUTAGE REPORT
G. LSC IMPACT REPORT
H. TECHNOLOGY DEMONSTRATION

8. ADJOURN





MEMORANDUM
                                                                                                                  
                                                                                               
                                                                                     
TO:                       Members of Glasgow Electric Plant Board                 
                                                                                               
FROM:                  William J. Ray, PE                 
                                                                                               
DATE:                  2/20/2020    
                                                                                                                  
SUBJECT:            February Board Meeting Information                                             


                                     
February Main Topics

ร˜  Board Officer Elections Policy
ร˜  Pad Mount Transformer Purchase
ร˜  TVA Long Term Relationship Agreement Update
ร˜  Rules and Regulations Changes



Action Items
March 1 FCA
ร˜  The March 2020 TVA FCA is projected to decrease to 1.627 cents per kWh. This is another small reduction in the FCA. Mild January weather resulted in less power being generated, which lowered TVA’s cost of fuel – mainly coal. Abundant hydroelectric generation also impacted the fuel cost positively.  
ร˜  On March 1, the energy component of our retail rates will adjust to reflect this decrease passed on by TVA.
        
Pad Mount Transformer Purchase
ร˜  Growth of production capacity at Chuhatsu brings about the need for a bigger power contract and additional transformation capacity.
ร˜  An additional 2000 kVA, 277/480v., three phase unit is needed.
ร˜  We purchase units like this through a cooperative transformer design/pricing group purchasing arrangement, with fixed pricing.
ร˜  The present group price for the needed unit is $24,343. I will ask the Board to approve this purchase.

EPB Board Officer Election Policy
ร˜  Until the last few years, there was little turnover of EPB Board membership, and there has never been a stated Board policy regarding the frequency of officer elections, nor the term of elected officers.
ร˜  Since turnover of Board membership is now common, it seems that the Board should institute a policy on officer elections and terms of office.
ร˜  I will not suggest what the policy should be, but if you adopt one, it will make it far easier for the Superintendent to plan appropriate agendas to include whatever election frequency that the Board chooses.

TVA Long Term Partnership Agreement Update
ร˜  Since the recently executed agreement has a Most Favored Nations clause, any changes to the original agreement that TVA offers any LPC, must also be offered to all LPCs.
ร˜  Enclosed in the Board package is a recent marked up copy of the agreement wherein TVA has offered some enhancements to the agreement. These changes would seem to improve the agreement from the EPB perspective, but that determination is up to the Board.
ร˜  If you are okay with the changes, we need to do nothing and the agreement between EPB and TVA will automatically be updated in 90 days. Should the Board elect not to receive the new benefit of the proposed change, we must notify TVA that we want to stand on the existing agreement language, within 90 days.

Rules and Regulations Changes
ร˜  One of the biggest responsibilities of the Board is to deliberate on what the General Schedule of Rules and Regulations should contain. These are the rules that inform our customers how we do business, and they form the instructions for the EPB team to operate under. While these rules must also be approved by TVA, it is good to review them often, just to make sure that changing conditions match up with our published Rules and Regulations.
ร˜  This month we want to conduct such a review and I will recommend a few changes. A marked-up set of those recommended changes is included with this package.
ร˜  At the meeting we will discuss these recommendations. Some of the proposed changes are intended to underscore things we already do, but which are not clear enough in the document. For example, we often hear that EPB should separate electric and cable billing by sending out separate bills. While we do not spend the extra money for a second bill, we do clearly delineate electric bill payment from other broadband services, and we never terminate electric service when the electric portion of the bill is paid. This accomplishes the same thing, without the redundant billing. That is one of the clarifications we are recommending.
ร˜  Another refrain we hear fairly often, is that EPB should allow customers to pick their own due date. We have been doing that for over a decade, but even though we explain that often in our lobby, it is not sufficiently addressed in the present iteration of the Rules and Regulations, so we want to correct that.
ร˜  We are also suggesting other changes, especially relative to the i-Pay product. A few years of administering this product have revealed some minor changes and clarifications that should be presented in the Rules and Regulations, and they are shown for your consideration.
ร˜  Please review the proposed changes and be prepared to discuss same at the meeting. If you concur with the recommendations, we will still need to pass them by TVA before they become effective.




Reports

ร˜  Metrics and Financial Review
ร˜  March FCA
ร˜  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.
ร˜  Windstream Bankruptcy Update
-       There is good news! Windstream is now current on all electric accounts. They made a large payment on the pre-petition debt as well, and they have paid the 2019 and 2020 pole rental amounts (nearly $80,000 total). It seems that Scott Bachert found the right way to approach them.
ร˜  Community Relief Funding Update
-       As the Board instructed, we have already delivered our first monthly payment of $4500 to the agency. The letter attached to this package was sent to the agency to explain your plans and the conditions you placed on the donations.
ร˜  Large Outages Report
-       I normally give a report on what happened whenever a circuit locks out for an extended period. These outages might impact 200-700 customers, and it is just good for the Board to hear how these events unfold. At the meeting, I will have a report on a couple of circuit lockouts in the last month.
ร˜  LSC Financial Impact on EPB
-       The Superintendent will review potential impact of the LSC announcement on EPB finances, and how EPB non-volumetric rates have limited EPB exposure.
ร˜  Technology Demonstration
-       In the past, before the boardroom contained so much strife, I used to regularly give the Board a demonstration of the latest technology we are studying for our customers. This month we will return to that habit and demonstrate some of the latest video formats. See https://en.wikipedia.org/wiki/8K_resolution for background information.


Conclusion

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

Friday, January 24, 2020

January 28, 2020 Regular EPB Meeting

TENTATIVE REGULAR MEETING AGENDA
GLASGOW ELECTRIC PLANT BOARD
JANUARY 28, 2020, 6:00 pm
1. APPROVAL OF AGENDA AND ANY ADDITIONS
2. CONSIDER MINUTES OF DECEMBER 17, 2019 MEETING
3. CONSIDER WINDSTREAM BANKRUPTCY MATTER - SCOTT BACHERT
4. CONSIDER BOARD’S WISHES FOR RATE DESIGN TO DISTRIBUTE TVA 3.1% CREDIT AND POSSIBLE CONTRIBUTION TO COMMUNITY RELIEF
5. CONSIDER OFFICIAL CUSTODIAN OF RECORDS RESOLUTION
6. PROGRAMMING COMMITTEE RECOMMENDATIONS AND APPOINTMENTS
7. CONSIDER CHECK SIGNING AUTHORIZATIONS
8. SUPERINTENDENT’S REPORT
A. DECEMBER METRICS AND FINANCIAL METRICS REVIEW
B. FEBRUARY FCA
C. CPD LEDGER
D. LSC REPORT
9. ADJOURN

MEMORANDUM
TO: Members of Glasgow Electric Plant Board
FROM: William J. Ray, PE
DATE: 1/24/2020
SUBJECT: Board Meeting Information
January Main Topics
ร˜ Windstream Bankruptcy
ร˜ Discuss Options for 3.1% Credit Disbursement
ร˜ Official Custodian of Records
ร˜ Programming Committee Matters
ร˜ Check Signing Authorizations
Action Items
๐Ÿ“ท
February 1 FCA
ร˜ The February 2020 TVA FCA is projected to decrease to 1.637 cents per kWh. This is the lowest FCA for a February in seven years, due to lower purchased power and natural gas costs, and abundant hydroelectric generation.
ร˜ On February 1, the energy component of our retail rates will adjust this decrease passed on by TVA.
Discussion of Windstream Bankruptcy Matter
ร˜ This item is tentative, as it might resolve itself before the meeting.
ร˜ Scott Bachert, with the firm Kerrick Bachert, PSC, represents us in this matter, and will be in attendance, if necessary, at the meeting to brief the Board.
ร˜ We are pursuing about $40K in unpaid account balances pre-petition, and Scott will discuss ways to improve our pursuit of payment.
ร˜ We are also suffering from unpaid accounts in the post-petition environment this year. Our normal option would be to terminate service, which would eventually end phone service in Glasgow. Scott will also give us his advice on that matter.
EPB Options for Dispersing the 3.1% Wholesale Credit from TVA
ร˜ With the execution of the TVA Long Term Partnership Agreement in November, EPB is receiving a 3.1% wholesale bill credit from TVA each month (amounting, on average, to something over $40,000 per month with present rates).
ร˜ The Board asked Superintendent to ascertain the acceptable “De Minimis” amount that TVA would allow EPB to give to Community Relief, in furtherance of their mission to help low-income households weather economic emergencies. That amount has been stipulated by TVA at $56K per year (as shown in attached email).
ร˜ Due diligence has also been performed relative to Community Relief, and some of the information about them is also included in the Board meeting package.
ร˜ We’ll also need to discuss the possible impact of the LSC closing on EPB net income. Some of the credit might need to be used to cover that loss.
Official Custodian of Records Discussion
ร˜ Repetitive Open Records Requests filed by a local newspaper have resulted in a review of EPB policies relating to open records.
ร˜ Some weaknesses have been detected and advice of counsel has resulted in a recommendation that Board policy should be established to clarify EPB’s policy and to make sure EPB is compliant with all Kentucky statutes and rules attendant thereto.
ร˜ Recommended changes will be proposed at the meeting that will bring EPB into full “letter of the law” compliance, while making it clear that all Open Records Request responses will come from the official custodian of records for EPB, and no one else.
Programming Committee Issues
ร˜ An agreement was reached between the Cable Cooperative and Fox for continued carriage of Fox News and a few other channels. The Programming Committee recommends that the Board accept the terms and continue carriage of this programming.
ร˜ At the meeting we will report on the rate impact that this new agreement will have (it is actually quite small), and we will give you some information about the other contracts which must be renegotiated during 2020.
ร˜ You will also be reminded that the terms of Petie McLean and Jodi Crane will expire this month. You will need to choose new members of the committee, or, in the alternative, appoint them to new terms.
Check Signing Authorizations
ร˜ The most recent audit report included a new recommendation to remove Melanie Reed from the list of those approved to sign EPB checks for payment, as an enhancement to internal control. To accomplish this, and to prepare for likely upcoming retirements, the Board will be asked to approve a new list of approved signatories.
Reports
ร˜ Metrics and Financial Review
ร˜ February FCA
ร˜ 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 have hurt the fund.
ร˜ LSC Financial Impact on EPB
- Should this matter not be covered under an earlier agenda item, the Superintendent will review potential impact of the LSC announcement on EPB finances
Conclusion
Please let me know if you have any questions before the meeting.