Meeting of Commissioners of
Public Utility District No. 1 of Clark County, Washington
March 5, 2024
A meeting of Commissioners of Public Utility District No. 1 of Clark County was held at 1200 Fort Vancouver Way on Tuesday, March 5, 2024.
Present: President Jim Malinowski, Vice President Nancy Barnes Commissioners, CEO/General Manager Lena Wittler, Director of Finance Melissa Ankeny, Director of Communications and Corporate Citizenship Erica Erland, Director of Engineering Cal Morris, Director of Employee Resources Nichole Reitzenstein, Director of Operations/Interim Director of Water Gene Morris, Director of Information Services Jeff Groff, Director of Engineering Cal Morris, Director of Energy Resources Dan Bedbury, General Counsel John Eldridge, Director of Customer Service Lisa Fix, Power Manager Steve Andersen, Community Engagement Specialist Morgan Van Fleet, Materials and Purchasing Manager Cathy Wannamaker, Accounting Manager Jackie Maddux, Community Care Manager Chiharu Russell and Assistant to the CEO/General Manager Margaret Anderson.
Staff via digital conference (phone or video): Commissioner Jane Van Dyke, Vice President and PIO/Media Specialist Dameon Pesanti.
Others present in person or via digital conference (phone or video): Rick Marshall, Peter Harrison, James Oneil, Gordon Matthews, Sherry Erickson, Tom Gordon, Chris Thobaben and Shane (no last name provided).
At 9:00 a.m., President Malinowski called the meeting to order for the transaction of formal business and the agenda was approved as presented (Materials B).
Public Comment
Rick Marshall provided comment on planning for continued bad water years, base load resources, flexible thermal plants and extra reserves during excursion events.
Full written comments if provided are available upon request – please email [email protected] for a copy.
Consideration of the Minutes of February 20, 2024
The minutes were approved as presented.
Consideration of Accounts Payable
The board, by a unanimous vote, approved the following payment amounts as listed on the Letter of Transmittal dated March 5, 2024 from the District Auditor (Materials C):
Electric Revenue Fund – $16,946,530.91
Water Revenue Fund – $296,453.36
Generating System Fund – $1,083,203.36
For a total of $18,326,187.63
Consideration of Resolutions of Intent to Establish LUD Nos. 1470 and 1480
Director of Engineering Cal Morris addressed the board regarding the Intent to Establish Local Utility District Nos. 1470 and 1480.
Resolution No. 7837 – LUD No. 1470 – 119th Wilgus Cottages
Resolution No. 7838 – LUD No. 1480 – Ramble Creek 4A & 4B
After the presentation by Mr. Morris, Commissioner Malinowski opened for public comment. There being no comment, a motion was made by Commissioner Barnes, seconded by Commissioner Van Dyke, and unanimously carried that Resolution Nos. 7837 and 7838 be adopted and a public hearing was set for April 2, 2024 (Materials D).
Consideration of Bid Award No. 667 – 15Kv EPR URD Cable
Materials and Purchasing Manager Cathy Wannamaker reviewed the memo dated March 5, 2024 detailing the bid results (Materials E). Commissioner Barnes moved to recommend that Bid No. 667 be awarded to the low evaluated bidder General Pacific, Inc. for the three-year contract period based on the annual estimated contract amount of $1,475,720 plus applicable taxes. Commissioner Van Dyke seconded the motion and it passed unanimously.
Disposal 116 – Surplus Vehicles and Equipment
Materials and Purchasing Manager Cathy Wannamaker reviewed the memo dated March 5, 2024 outlining the accumulated vehicles and equipment identified as surplus due to high mileage or hours, and/or years of service and increased repairs leading to increased cost and downtime (Materials F).
Commissioner Van Dyke moved to declare the vehicles and equipment identified in the presentation as surplus and approved for disposal through J Stout Auctions during various auction sales. Commissioner Barnes seconded the motion and it passed unanimously.
Clean Energy Transformation Act Low Income Pilot Program
Community Care Manager Chiharu Russell reviewed the Clean Energy Transformation Act (CETA) energy burden program requirements (Materials G). Ms. Russell outlined the proposed energy burden relief adjustment program, account balance recovery program and the low energy burden bill credit program. The funding requirements for these programs were reviewed along with the proposed timeline.
Commissioner Barnes moved to approve the CETA Energy Assistance Pilot Programs as presented, Commissioner Van Dyke seconded the motion and it passed unanimously.
January Financials
Director of Finance Melissa Ankeny addressed the board (Materials H). Weather was wetter and colder than normal, which resulted in electric revenues and off system sales above budget. January residential sales were 116.6% of budget, commercial sales were 101.0% and industrial sales were 94.1% of budget. January ended the first month of the year with a net income loss of $21.3 million compared to a budgeted net income of $5.7 million.
The Water System ended January with 20 new customers, which is a growth rate of .59% year-to-date. January ended with a net income of $54,000 compared to a budgeted net income loss of $246,000 for a year-to-date net income $300,000 ahead of the budget.
January Wholesale Operations
Power Manager Steve Andersen addressed the board (Materials I). Mr. Andersen provided an update on power supply noting that January Slice generation was 24 aMW below budget and loads in January were 60 aMW above budget. A new all-time high peak load for Clark Public Utilities was recorded at noon on January 13, 2024; the second highest energy consumption on record. It was also the eighth coldest January on record.
Combine Hills II January generation of 13.4 aMW was 22% less than the budgeted 17.1 aMW, generation was 0 MW approximately 52% of all hours.
Mr. Andersen reviewed January market transactions by day, forward market pricing outlook and summer 2024 forward on-peak market prices.
2023 Surplus and January 2024 Extreme Weather Purchases
Director of Finance Melissa Ankeny reviewed the revenue requirement prior to the surplus transfer in the Electric system and the Water system in addition to the regulatory expense created by the power supply costs due to the extreme weather in January (Materials J).
Following the presentation, Commissioner Van Dyke moved to allocate $2 million of Electric system surplus in 2023 to reduce market purchase power expenses in January 2024. In addition, transfer in 2023, increase regulatory revenue by $2.0 million by reducing Electric sales to be used in January 2024 to reduce purchase power expense. Commissioner Barnes seconded the motion and it passed unanimously.
Commissioner Barnes moved to allocate $2 million in Water system surplus to discretionary rate funded capital to reduce the 2024 and 2025 rate capital funding requirement and $3 million to the Water system rate stabilization fund. In addition, transfer in 2023, increase regulatory revenue by $3.0 million by reducing Water sales and increase the rate stabilization fund. Commissioner Van Dyke seconded the motion and it passed unanimously.
Commissioner Barnes moved to allocate the January 2024 extreme weather market purchases expense of $26,992,000 over the months of March 2024 through September 2025 to be applied at $1,420,632 per month. This expense was included to be recovered in the 2024 rate increase. The result will create a regulatory asset in January 2024 in the amount of
$26,992,000.
Commissioner Reports and Comments
Commissioner Barnes reported on her attendance at the Community Leader Education Series session two, and the Washington PUD Association legislative report.
Commissioner Van Dyke reported on her trip to Washington D.C. representing the Washington PUD Association and the American Public Power Association.
Staff Reports
CEO/General Manager Lena Wittler also reported on her attendance at the legislative event in Washington D.C. and thanked ComCare Manager Chiharu Russell and the team again for their work on the energy assistance program changes in compliance with CETA requirements to reduce energy burden.
Other Business before the Board
There being no further business to come before the Board, the meeting was adjourned at 11:10 a.m.