Thursday, February 20, 2020
February 25, 2020 Regular EPB Meeting, 6:00 PM
3:25 PM | 
Posted by
Billy Ray |
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
Ø
Board
Officer Elections Policy
Ø Pad Mount Transformer Purchase
Ø
TVA
Long Term Relationship Agreement Update
Ø Rules and Regulations Changes
Action Items
March 1 FCA
Ø 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.
Ø On March 1, the energy
component of our retail rates will adjust to reflect this decrease passed on by
TVA.
Pad Mount
Transformer Purchase
Ø Growth of production capacity at Chuhatsu brings about the need for a
bigger power contract and additional transformation capacity.
Ø An additional 2000 kVA, 277/480v., three phase unit is needed.
Ø We purchase units like this through a cooperative transformer
design/pricing group purchasing arrangement, with fixed pricing.
Ø 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
Ø
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.
Ø
Since turnover of
Board membership is now common, it seems that the Board should institute a
policy on officer elections and terms of office.
Ø
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
Ø 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.
Ø 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.
Ø 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
Ø 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.
Ø 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.
Ø 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.
Ø 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.
Ø 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.
Ø 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
Ø
Metrics and Financial
Review
Ø
March 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. 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.
Ø 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.
Ø 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.
Ø 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.
Ø 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.
Ø 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
Ø Windstream Bankruptcy
Ø Discuss Options for 3.1% Credit Disbursement
Ø Official Custodian of Records
Ø Programming Committee Matters
Ø Check Signing Authorizations
Action Items
📷
February 1 FCA
Ø 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.
Ø On February 1, the energy component of our retail rates will adjust this decrease passed on by TVA.
Discussion of Windstream Bankruptcy Matter
Ø This item is tentative, as it might resolve itself before the meeting.
Ø 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.
Ø We are pursuing about $40K in unpaid account balances pre-petition, and Scott will discuss ways to improve our pursuit of payment.
Ø 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
Ø 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).
Ø 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).
Ø 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.
Ø 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
Ø Repetitive Open Records Requests filed by a local newspaper have resulted in a review of EPB policies relating to open records.
Ø 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.
Ø 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
Ø 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.
Ø 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.
Ø 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
Ø 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
Ø Metrics and Financial Review
Ø February 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 have hurt the fund.
Ø 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.
Friday, December 13, 2019
December 17, 2019, Regular EPB Meeting, 6:00 PM
1. APPROVAL OF AGENDA AND ANY ADDITIONS
2. CONSIDER MINUTES OF NOVEMBER 26, 2019 MEETING
3. CONSIDER BI-ANNUAL WRITE-OFFS
4. DISCUSS TVA HOME UPLIFT PROGRAM
5. DISCUSS BOARD’S WISHES FOR RATE DESIGN TO DISTRIBUTE TVA 3.1% CREDIT
6. CLOSED SESSION UNDER KRS 61.810(1)C TO DISCUSS DEFAMATION LITIGATION
7. CONSIDER 2020 EPB PAY PLAN
8. CONDUCT PERFORMANCE EVALUATION OF SUPERINTENDENT
9. SUPERINTENDENT’S REPORT
A. NOVEMBER METRICS AND FINANCIAL METRICS REVIEW
B. JANUARY FCA
C. CPD LEDGER
D. WINDSTREAM BANKRUPTCY
E. EPB INTERNET SPEED UPGRADE
F. PROGRAMMING COMMITTEE ISSUES
10. ADJOURN
TO: Members of Glasgow Electric Plant Board
FROM: William J. Ray, PE
DATE: 12/13/2019
SUBJECT: Board Meeting Information
December Main Topics
Ø Accounts to be Written Off
Ø TVA Home Uplift Program
Ø Discuss Options for 3.1% Credit Disbursement
Ø Review and consider EPB Pay Plan for 2019
Ø Evaluate Superintendent’s Performance
Ø EPB Internet Speed Upgrade
Action Items
📷
January 1 FCA
Ø The January 2020 TVA FCA is projected to decrease to 1.715 cents per kW. Since the meeting is a week early, final TVA figures on the FCA are not yet available.
Ø On January 1, the energy component of our retail rates will adjust to reflect the actual change when it is posted by TVA.
Bi-Annual Write Offs Report and Recommendation
Ø List of accounts proposed to be written-off is provided as an attachment.
Ø Superintendent will review the list of accounts with board and make a recommendation.
TVA Home Uplift Program Under TVA’s Energy Right Bundle
Ø TVA has just announced a new feature of its Energy Right Solutions package, and it is called Home Uplift.
Ø The new program is targeted at making energy efficiency and healthy livability improvements to the homes of low-income families who occupy their own home.
Ø The money available for each LPC is based upon a formula, wherein our electric revenue determines the amount of that revenue TVA will allow us to commit to the program, and then TVA adds to that amount with a partial match.
Ø In Glasgow’s case, TVA would allow us to commit $56,000 to the program, and they would match it with $19,250.
Ø More details on this opportunity to deepen EPB’s commitment to stewardship in the low-income community will be provided at the meeting.
EPB Options for Dispersing the 3.1% Wholesale Credit from TVA
Ø With the execution of the TVA Long Term Partnership Agreement last month, EPB will be receiving a 3.1% wholesale bill credit from TVA each month (amounting, on average, to something over $40,000 per month with present rates).
Ø The Board will be asked to give directions on how that money is to be utilized and dispersed.
Discussion of Possible Defamation Action in Executive Session
Ø The Board will consider entering Executive Session under KRS 61.810(1)(c) to hear recommendations from Jeremy Rogers, Partner with the Dinsmore law firm.
Annual EPB Pay Plan Review
Ø Per the Board’s long-standing directions, a survey of the pay plans of peer utilities has been conducted.
Ø This year, the delta between EPB Hourly pay rates and the average of the peer group was found to be 3.3%.
Ø Superintendent will recommend a 2.9% adjustment to hourly position pay rates for 2020, along with corresponding adjustments to the midpoints of the six EPB merit pay grades.
Ø Nationwide CPI change over the 12 months ending in November, as reported by Bureau of Labor Statistics, is 2.1% https://www.bls.gov/news.release/cpi.nr0.htm
Ø Superintendent will recommend budgets for hourly, merit, apprentice, and retirement/replacements for 2020.
Performance Review of Superintendent
Ø A performance review of the Superintendent is customarily performed during the December meeting.
Reports
Ø Metrics and Financial Review
Ø January 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 have hurt the fund.
Ø Windstream Bankruptcy
Ø End of Year Internet Upgrade Plans
- EPB has historically recognized the value of its internet access products and the customers who use the product, by performing the necessary work to upgrade speed offerings each year.
- The authorization by the board has allowed us to procure the necessary hardware and software upgrades to upgrade speeds again this year, and those upgrades have been successfully installed, with little interruption to customer services. This process began one year ago, with engineering design work done on the network, followed by construction activity by EPB crews to carry out the plans, without objectionable outages to customers.
- This year our speed increases concentrate on uploads. We have just announced that our products are upgrading to 25/5, 50/10, and 100/20 MBPS (500% faster upload speeds)! This new upload speed will dramatically improve our network performance for businesses and those who work from home. Best of all, we’re providing this new functionality without increasing rates!
Ø Programming Committee Issues
Conclusion
Please let me know if you have any questions before the meeting.
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