Meeting of Commissioners of
Public Utility District No. 1 of Clark County, Washington
February 7, 2017

A meeting of Commissioners of Public Utility District No. 1 of Clark County was held in the Electric Center, 1200 Fort Vancouver Way, Vancouver, Washington, on Tuesday, the 7th day of February at the hour of 9:00 a.m.

Present: President Jane Van Dyke, Vice President Jim Malinowski, Secretary Nancy Barnes, Commissioners, CEO/General Manager Wayne Nelson, Director of Finance Rick Dyer, Director of Operations Dan Krebs, Director of Engineering Cal Morris, Director of Communications Lena Wittler, Director of Water Doug Quinn, Director of Energy Resources Dan Bedbury, Director of Customer Service Lisa Fix, Corporate Communications Manager Erica Erland, Senior Manager of Large Industrial/Conservation Planning Larry Blaufus, Materials and Purchasing Manager Cathy Wannamaker, Key Accounts Manager Bart Hansen, Manager of Energy Planning and Operations Tom Haymaker, Communications Coordinator Maxie Lofton, and Assistant to CEO/General Manager Margaret Anderson.

Press Representatives: None

Others Present: Mike Selig – Clark County, Jack Graves – Burgerville, Kelli Orthmeyer – Burgerville and Rick Marshall (Materials A)

At 9:00 a.m., President Van Dyke called the meeting to order for the transaction of formal business.

Commissioner Barnes was excused from the start of the meeting but joined the meeting at 10:30 am.

Consideration of the Meeting Agenda
There were no changes or corrections (Materials B).

Public Comment on Non Agenda Items
Customer Rick Marshall spoke to the board about his support of electric vehicles and the responsibility of all residents to support the technology and reduce emissions. The board thanked Mr. Marshall for his comments and for taking the time to come to the meeting today.

Consideration of the Minutes of January 24, 2017
There were no changes or corrections.

Consideration of Accounts Payable
The board, by a unanimous vote, approved the following payment amounts as listed on the Letter of Transmittal dated February 7, 2017, from the District Auditor:

Electric Revenue Fund – $13,214,912.34
Water Revenue Fund – $489,360.41
Generating System Fund – $1,559,505.07

For a total of $15,263,777.82

Race for Warmth Update
Marketing and Communications Coordinator Maxie Lofton provided the board with a recap of the Race for Warmth event (Materials C). The race raised a total of $50,800 for Operation Warm Heart and Burgerville was in attendance as the single largest donor, having raised more than $17,000. The board thanked Burgerville for being such a generous community partner.

Consideration of Weatherization Funding Interlocal Agreement with Clark County
Senior Manager of Large Industrial/Conservation Planning Larry Blaufus addressed the board (Materials D). Mr. Blaufus proposed a ten-year interlocal agreement with Clark County to combine weatherization assistance for funds with County managed public funds to continue providing low-income weatherization services in partnership. County Program Manager Mike Selig was in attendance and attested to the efficiency of the program collaboration with the utility to-date. The most notable change to the agreement was the increase to the reasonable administrative program support and overhead cost charges from 20% to 25% of funding dollars.
Commissioner Malinowski moved to authorize CEO/General Manager Wayne Nelson to sign the interlocal contract between Clark Public Utilities and Clark County for $400,000 of the utility’s weatherization measures funding and if approved by the utility, limited additional funds for emergency heat repair and replacement in electrically heated homes, weatherization related repairs in electrically heated homes, and miscellaneous electric energy/water related repairs regardless of heat source, to be invested annually from January 1, 2017 – December 31, 2027, not to exceed $5.0 million. Commissioner Van Dyke seconded the motion, and it passed unanimously.

Consideration of Bid Award No. 505 – Distribution Wood Poles
Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated February 7, 2017, detailing the bid results (Materials E). Commissioner Malinowski moved to recommend that Bid No. 505 be awarded to McFarland Cascade Holdings, Inc., in the amount of $220,357.00 plus applicable taxes. Commissioner Van Dyke seconded the motion, and it passed unanimously.

Consideration of the Net Metering Policy
Director of Engineering Cal Morris and Director of Energy Resources Dan Bedbury provided a review of changes to the Net Metering Policy (Materials F). The updated policy included a reduction in the maximum size of the systems from 300 kW to 100 kW, the requirement of a production meter for new systems, and clarification that over-generation does not result in payment, in accordance with state law. Commission Barnes moved to adopt the new terms of the Net Metering Policy, Commissioner Malinowski seconded the motion, and it passed unanimously with the expectation that the customer letter would be updated as discussed.

December Financials
Director of Finance Rick Dyer addressed the board (Materials G). December had cooler drier weather resulting in electric revenue above forecast. Mr. Dyer reported that both system sales and off system sales were above budget for the month. December residential sales were 114% of budget; commercial sales were 92.8% and industrial sales were 110.9% of budget.

December ended with a $4.53 million in net income, compared to $169,000 in the budget. To date the annual net income for the Electric System is $21.3 million, compared to an estimated surplus of $3.0 million. The board will discuss options regarding the surplus including capital funding and customer credits at the next board meeting.

The Water System has added 827 new customers year to date resulting in a year-to-date growth rate of 2.46%. The net income in December was $39,000 against a budgeted net income loss of $248,000. To date the annual net income for the Water System is $2.4 million, compared to a budgeted net income of $972,000.

December Wholesale Operations
Manager of Energy Planning and Operations Tom Haymaker addressed the board (Materials H). Mr. Haymaker updated the board on power supply noting that Slice performed slightly above prompt month and 35MW above budget forecasts. Loads were above budget for the month of December and recorded a record change in load from November to December.

River Road Generating Plant was taken down on February 4 late in the evening and will remain off line through the maintenance period.

Mr. Haymaker provided the board with a transaction update.

Commissioner Reports and Comments
Commissioner Malinowski reported on his attendance at the Energy Northwest meetings that were held in Olympia. Energy Northwest is asking utility members to pass resolutions in support of the plant. Commissioner Malinowski will forward the example resolution to the other board members.

Commissioners Van Dyke and Barnes reported on their attendance at the Public Power Council meetings.

Staff Reports
Dan Krebs updated the board on the crews that are providing mutual aid to Puget Sound Energy and Cowlitz PUD.

Other Business before the Board
There being no further business before the Board, the meeting was recessed to executive session at 11:50 a.m. to discuss possible litigation. Commissioner Van Dyke expected the executive session to last no later than 12:30 p.m. and no formal action would be taken.

At 12:30 p.m. Commissioner Van Dyke reconvened the public meeting, reporting that no formal action was taken during executive session, and the public meeting was adjourned at 12:30 p.m.