Meeting of Commissioners of
Public Utility District No. 1 of Clark County, Washington
February 19, 2019

A meeting of Commissioners of Public Utility District No. 1 of Clark County was held at the Electric Center, 1200 Fort Vancouver Way, Vancouver, Washington, on Tuesday, February 19, 2019.

Present: President Nancy Barnes, Secretary Jim Malinowski Commissioners, Director of Operations Dan Krebs, Director of Communications and Employee Resources Lena Wittler, Director of Engineering Cal Morris, Director of Water Doug Quinn, Director of Finance Melissa Ankeny, Director of Information Services Mike Harris, Director of Energy Resources Dan Bedbury, Corporate Communications Manager Erica Erland, Communications Services Manager Heather Allmain, Key Account Manager Bart Hansen, Quality Service Manager Mike McClean, Serviceman Brian Roden and Assistant to CEO/General Manager Margaret Anderson.

Press Representatives: None

Others Present: Kaylee Wells, Christi David, Clare Clancy – Burgerville, Rick Marshall, Don Steinke, Alona Steinke, Rick Syring, Terry Oliver, Diana Gordon, Catherine Chutty and Debbie Krebs (Materials A)

At 9:00 a.m., President Barnes called the meeting to order for the transaction of formal business. Commissioner Barnes noted a quorum was present and the agenda (Materials B) was approved as submitted. Commissioner Van Dyke was excused from the meeting.

Consideration of the Minutes of February 5, 2019
There were no changes or corrections.

Public Comment – Non Agenda Items
Member of the public Rick Marshall first complimented the utility on its great customer service over the years. Mr. Marshall would like to see Clark Public Utilities support 100% clean energy policy at the state-level, he feels it will create a lot of economic development.

Member of the public Don Steinke shared his thoughts regarding Clark Public Utilities’ conservation efforts with our commercial customers and feels opportunities have been missed. Mr. Steinke would also like to see Clark Public Utilities support senate bill 5116.

Member of the public Catherine Chutty shared her appreciation for Clark Public Utilities and noted that she is a community solar participant. Ms. Chutty also asked for the utility to support senate bill 5116 and indicated that she would like us to incentivize conservation more.

The board thanked all the members of the public for their attendance and participation today.

Following public comment CEO/General Manager Wayne Nelson provided the board with a legislative update and staff participation in the legislative process surrounding senate bill 5116. Mr. Nelson noted that following more than two years of discussion with legislators, the current iteration of the bill includes a cost cap provision for Clark Public Utilities and, in this current form, the board expressed support for the bill.

Consideration of Accounts Payable
The board, by a unanimous vote, approved the following payment amounts as listed on the Letter of Transmittal dated February 14, from the District Auditor (Materials C):

Electric Revenue Fund – $4,880,591.51
Water Revenue Fund – $249,368.63
Generating System Fund – $434,747.97

For a total of $5,564,708.11

Race for Warmth Recap
Communications Services Manager Heather Allmain shared a recap of the Race for Warmth fundraising run/walk benefiting Operation Warm Heart (Materials D). Just over 1,450 walkers and runners participated, resulting in more than $65,000 in net proceeds to be contributed to Operation Warm Heart. Registrations and net proceeds exceeded expectations and last year’s numbers, more than doubling registrations and tripling net proceeds since the first race in 2015. The event continues to be a resounding success with contributions both monetary and in-kind from partners to help provide for event needs.

Kaylee Wells, Christi David and Clare Clancy with Burgerville were in attendance and presented the utility with a check for $19,508.81, they are the single largest Race for Warmth donor, having raised nearly double what they did last year. The board thanked Burgerville for being such a generous community partner.

Post-Employment Benefit Reporting
Director of Finance Melissa Ankeny provided the board with a review of the new Governmental Accounting Standards for Other Post-Employment Benefits and the utility’s current financial statement treatment for Other Post-Employment Benefits (OPEB) (Materials E).

Following the review, Ms. Ankeny recommended that Clark Public Utilities follow the treatment the board authorized in 2015 for the Pension for OPEB expense. This treatment creates a regulatory asset and charges to expense the actual OPEB expenses that have been paid, budgeted and included in rates in any given year.

Commissioner Malinowski moved to create a regulatory asset and charge the expense the actual OPEB expenses that have been paid, budgeted and included in rates in any given year. Commissioner Barnes seconded the motion and it passed unanimously.

December Financials
Director of Finance Melissa Ankeny addressed the board (Materials F). December had warmer and drier weather resulting in electric revenues coming in above forecast. Ms. Ankeny reported that system sales were below budget and off system sales were above budget for the month. December residential sales were 95.4% of budget, commercial sales were 94.9% and industrial sales were 101.9% of budget. December ended with net income of $4.8 million compared to a budgeted net income of $6.3 million. Year-to-date net income is $16.5 million ahead of budget. Ms. Ankeny also provided a year-to-date electric system and generating system capital spending summary along with a conservation spending summary year-to-date.

The Water System ended December with 1,123 new customers year-to-date, which is a growth rate of 3.13%. There was a net income loss of $325,000 for December, compared to a budgeted net income loss of $174,000. Year-to-date, the Water System net income is $2.7 million ahead of budget. Ms. Ankeny provided the board with a water system capital spending summary.

The board was provided with a summary of the rate stabilization fund to date.

December Wholesale Operations
Director of Energy Resources Dan Bedbury addressed the board (Materials G). Mr. Bedbury updated the board on power supply noting that Slice performed below both prompt month and budget forecasts. Loads were 28 aMW below budget for the month of December. Power and gas prices were strong at the beginning of the month but softened as Enbridge pipeline increased capacity.

Mr. Bedbury provided an overview of the impacts to December power supply costs as a result of the Enbridge pipeline outage.

River Road Generating Plant returned to service on December 11.

Commissioner Reports and Comments
Commissioner Malinowski reported on his attendance at the Washington PUD Association meetings.

Commissioner Barnes reported on her attendance at the Columbia Springs Board meeting and the Public Power Council meetings.

Staff Reports
CEO/General Manager Wayne Nelson shared that this would be Director of Operations Dan Krebs’ last meeting as he will be retiring on February 28. Mr. Nelson shared that Mr. Krebs had been with the utility for nearly 40 years in 12 different jobs across six departments. Noting it will be difficult to fill his shoes, he and the board wished Mr. Krebs well in his retirement and acknowledged that he will be greatly missed.

Public Comment
There were no additional comments.

Other Business before the Board
There being no further business to come before the Board, the meeting adjourned at 10:50 a.m.