Blog Archive

Friday, June 21, 2019

June 25, 2019 Glasgow EPB Regular Meeting

TENTATIVE REGULAR MEETING AGENDA
GLASGOW ELECTRIC PLANT BOARD
JUNE 25, 2019, 6:00 PM
1. CONDUCT ELECTION OF OFFICERS
2. APPROVAL OF AGENDA AND ANY ADDITIONS
3. CONSIDER REPLACEMENT OF ROBERT’S RULES
4. REVIEW AND APPROVE MINUTES OF MAY 28, 2019 MEETING
5. CONSIDER BI-ANNUAL WRITE-OFFS
6. CONSIDER PARK MOVIE SCREEN MATTER
7. CONSIDER QUITCLAIM DEED FOR EASEMENT
8. CONSIDER 2019 BUDGET ADJUSTMENT and 2020 BUDGET
9. SUPERINTENDENT’S REPORT
A. MAY METRICS AND FINANCIAL METRICS REVIEW
B. JULY FCA
C. CPD LEDGER
D. AG RULING ON GDT COMPLAINT - TRAINING
E. WINDSTREAM BANKRUPTCY
F. TVA DISCUSSION ON GREEN POWER PROGRAM ISSUE
G. LARGE OUTAGE REPORT
10. ADJOURN


MEMORANDUM
TO: Members of Glasgow Electric Plant Board
FROM: William J. Ray, PE
DATE: 6/21/2019
SUBJECT: Board Meeting Information
June Main Topics
Ø Reorganize Board and Elect New Officers
Ø Discuss Replacement of Robert’s Rules of Order as EPB Meeting Guide
Ø Bi-Annual Write Offs Report
Ø Park Movie Screen Question
Ø Consider Quitclaim Deed for Roger Payne
Ø Amend 2019 Budget and Approve 2020 Budget
Ø Reports
📷July 1 FCA
Ø The July 2019 TVA FCA will increase to 1.854 cents per kWh. This is the second monthly increase to the FCA in the last two months. TVA’s explanation is that an unusually hot May put unexpected pressure on sales and, in turn, fuel costs.
Ø On July 1, the energy component of our retail rates will adjust to reflect this anticipated increase to the wholesale cost of energy.
Action Items
Election of Board Officers
Ø The resignation of D.T. Froedge, with his ultimate status unknown, according to newspaper reports (there has been no formal notice from City of Glasgow provided to EPB), leaves us looking for stability through new officers. Board members should conduct a new election of officers at this meeting, to establish clear authority as to who will chair the upcoming meetings.
Approval of Agenda and any New Items Desired by Board
Ø As the meeting will open with the adoption of Robert’s Rules of Order still in place, this agenda approval item will need to follow the election of officers. The present proposed agenda is attached to this narrative, but, as always, any board member can ask for additional items to be added.
Robert’s Rules of Order or an Alternative Set of EPB Rules of Order
Ø As we’ve all seen, proper compliance with Robert’s Rules of Order, as adopted by the Board earlier this year, is quite difficult due to the volume of rules contained therein, and the general lack of expertise on the many facets to Robert’s Rules.
Ø Since Glasgow EPB has operated quite effectively for over 50 years using simple parliamentary procedures to govern its meetings, the Board may want to consider adopting a written version of basic parliamentary procedure, perhaps customized to meet the specific desires of the Board, such that a return to less burdensome meeting procedures can occur.
Ø A copy of a simple outline of basic parliamentary procedure is attached for the Board’s consideration. At the meeting this document can be discussed and desired alterations can be directed to the Superintendent, such that a final document can be approved at a later meeting, formally recording in the minutes what meeting rules are in place for Glasgow EPB.
Review and Approve Minutes of May 28, 2019 Meeting
Ø This is the customary review and consideration of formally adopting the proposed minutes for the last meeting.
Bi-Annual Write-offs
Ø Many years ago, Glasgow EPB adopted the policy of officially considering account balances which have not been paid, for official write-off on a bi-annual schedule. This is normally done in June and December.
Ø Though the board has adopted a matrix of procedures, deposit policies, and technology to mitigate bad debt, the battle is not won. We still struggle to keep the monthly cost caused by those who take our services, yet do not pay for them, below $10,000. This month’s list of half a year’s worth of those bad debts will echo that monthly goal.
Ø Bad debt is a significant part of our fixed costs, which our new rates attempt to recover through the customer charge. Since keeping the customer charge low is a constant goal of the EPB team, keeping bad debt low is directly related.
Ø We are certain that no EPB customer who pays their account fully, and on time each month, wants to be burdened with also paying a portion of the costs associated with these customers who do not pay, but each month a portion of their customer charge is earmarked for that purpose. That is a shame, but as a non-profit municipal corporation, Glasgow EPB has no other way to cover the cost of bad debt.
Ø At the meeting, in conjunction with the discussion of the list of accounts we propose to be written off, we will discuss EPB policies relative to protecting the majority of customers from being tasked with paying for an increasing level of bad debt from a minority of customers. Since these policies are sometimes criticized, it will be useful for the Board to consider any new directions it thinks best for the EPB team to administer relative to the pursuit of bad debt reduction.
EPB Participation in Installation of Movie Screen at Beaver Creek Park
Ø City of Glasgow Parks and Recreation is partnering with Kiwanis Club and YMCA, in providing free outdoor movies in the park. The first of these was scheduled for June 14. They are making plans for the event to become quite large and, if that happens, some provisions for a larger movie screen must be planned.
Ø We have been approached by the sponsors and asked if we might participate in the provision and installation of a couple of wood poles which might be used to support the planned screen. While no official plans have yet been developed, the cost of us providing two 35-foot wood poles and installing them might cost us $1500 to $2500.
Ø At the meeting I would like to discuss this with the Board so I can get directions on this proposed project.
Consideration of Quitclaim Deed Request from Roger Payne
Ø This matter has been discussed off and on for several years. Roger Payne developed the Garnett Grove Subdivision, just south of Glasgow on US 31E.
Ø Glasgow EPB acquired a 69kV transmission line and a 100-foot-wide easement containing the transmission line, in the 1970s. The transmission line and easement were in place when the subdivision was developed, and several of the lots are affected by the restrictions associated with the transmission line and the easement.
Ø A few years ago, when East Glasgow Primary was built, along with a new TVA 161kV transmission line tap to serve it, the old 69kV line became redundant. We maintained the skeleton of the line and the easement to preserve our right to build a fiber optic circuit along that route in case it was needed in the future.
Ø As our internet access has evolved over the years, we see no clear need to further maintain that route.
Ø Roger Payne would like us to relinquish the easement through the execution of a quitclaim deed (a copy of which is attached), which he had prepared.
Ø At the meeting I will recommend that you honor his request and allow me to execute same.
Budget Adjustment and 2020 Budget Approval
Ø Kentucky law requires that non-profits and municipal corporations, like Glasgow EPB, end each fiscal year with a balanced budget, and begin each fiscal year with a board-approved budget for the year.
Ø The Board will need to consider the staff recommendation to alter the FY 2019 budget to reflect actual revenues and expenditures for the fiscal year about to end.
Ø The Board will also need to consider and adopt a new budget for FY 2020. Since it is impossible to accurately predict revenue from the sale of electric power, these budgets are passed to meet the letter of the law, while knowing full well that they will need to be adjusted before the end of the fiscal year.
Reports
Ø MAY METRICS. Superintendent will do a brief review of the performance of the Glasgow EPB metrics for May.
Ø FINANCIAL REVIEW. Superintendent will go over the financial metrics that are provided to the board members each month via access to the secure website. Newer board members should benefit from this explanation of what they are seeing on the website.
Ø JULY FCA. The Superintendent will go over the upcoming change to the Fuel Cost Adjustment for July, 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 on the status of that fund thus far in the fiscal year.
Ø OPEN MEETING LAW TRAINING. 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 elected to attend the training recommended in the GDT complaint. Tentative dates/times for the training are being pursued. Right now, KLC says they can do the training during the week of July 15. At the meeting I will be asking you to confirm a date and time for this training.
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. There will be a report on the progress at the meeting.
Ø TVA GREEN POWER PROGRAM. As directed, I’ve reopened the subject of how the Green Power Program pays developers of distributed generation projects for the energy they produce, with TVA. We went over the problematic issue relative to the amount TVA pays the developers, and they recognize the problem. I have been told that they are working on a solution that might make everyone happy, and that the details of that solution might be available for us to discuss at the meeting.
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. Large outages, and our response to them, gives board members a useful perspective on the decisions they are asked to make about infrastructure investments. The event we had in June impacted a total of just over 1500 customers. I look forward to discussing this event at the meeting.
Conclusion
Please let me know if you have any questions before the meeting.
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.