A special meeting of Commissioners of Public Utility District No. 1 of Clark County was held in the District offices, 1200 Fort Vancouver Way, Vancouver, Washington, on Tuesday, the 7th day of June at the hour of 8:00 a.m.

Present: President Nancy Barnes, Vice President Jane Van Dyke, Secretary Jim Malinowski, Commissioners; CEO/General Manager Wayne Nelson, Director of Finance Rick Dyer, Director of Operations Dan Krebs, Director of Customer Service Lisa Fix, Director of Engineering Cal Morris, Director of Communications Lena Wittler, Director of Energy Resources Dan Bedbury, Corporate Communications Manager Erica Erland, Energy Resource Manager Terry Toland, Senior Policy and Contracts Analyst Brenna Moore and Assistant to CEO/General Manager Margaret Anderson.

Press Representatives: None

Others Present: Mike Lyons, Bob Cone, Donna Roberge (Materials A)

The order of business recorded below reflects the published agenda (Materials B)

At 8:00 a.m., President Barnes called the meeting to order for the transaction of formal business.

Consideration of the Minutes of May 24, 2016
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 June 7, 2016 from the District Auditor:

Electric Revenue Fund – $4,716,630.74
Water Revenue Fund – $893,164.08
Generating System Fund – $325,525.36

For a total of $5,935,320.18

Consideration of Resolutions of Establishment of LUD Nos. 1249 and 1250
Director of Engineering Cal Morris addressed the Board regarding the Establishment of Local Utility District Nos. 1249 and 1250 for street lighting.

Resolution No. 7269 – LUD No. 1249 – Parkers Abby PH 1
Resolution No. 7270 – LUD No. 1250 – Anna Marie Lane

After the presentation by Mr. Morris, Commissioner Barnes opened the public hearing for comment. There being no public comment, a motion was made by Commissioner Van Dyke, seconded by Commissioner Malinowski, and unanimously carried that Resolution Nos. 7269 and 7270 (Materials C) be adopted.

Consideration of GE Agreement for Early Rotor Payment
Director of Finance Rick Dyer addressed the board proposing the early purchase of a Unit Rotor from General Electric International for the River Road Generating Plant (Materials D). In accordance with its maintenance schedule and utility budget forecasting, the purchase had been planned for 2017. GE has offered to sell the rotor at a savings of nearly half a million dollars if the transaction is completed this year. In addition to the cost savings, the utility will benefit from a guarantee of part availability for the planned 2017 maintenance outage. Commissioner Malinowski moved for approval of the early purchase and funding of the Unit Rotor from General Electric International. Commissioner Van Dyke seconded the motion and it passed unanimously.

Review of Washington Department of Commerce Clean Air Rule
Senior Policy and Contracts Analyst Brenna Moore provided the board with a summary of the recently released Washington State Clean Air Rule by the Department of Ecology (Materials E). The rule would require a reduction of carbon output from a baseline established using outputs from 2012-2016, beginning in 2018 and continuing through 2035. After 2035, the levels would remain steady.

Generators, including the utility would have various compliance options such as purchasing offsets for the carbon generated by the River Road Generating Plant, or operating the plant less frequently. Ms. Moore pointed out that many factors would need to be analyzed to determine actual cost impacts to the utility. Using conservative estimates, the annual impact appears to be less than half a million dollars for compliance with the rule as currently proposed.

The board directed staff to continue participating in the process on behalf of customers to ensure the most reliable and affordable service possible.

Commissioner Reports
Commissioners Barnes and Van Dyke reported they both attended the Public Power Council meetings.

Commissioner Malinowski reported on his tour of the Bonneville Power Association Celilo DC Converter Station.

Staff Reports
There were no staff reports.

Other Business before the Board
There being no further business before the Board, the meeting was recessed at 9:15 a.m. to executive session to discuss personnel matters, with no formal action taken. At 10:56 am Commissioner Barnes reconvened the public meeting and there being no further business to come before the board the meeting was adjourned at 10:56 a.m.