A 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 12th day of May at the hour of 9:00 a.m.
Present: President Jim Malinowski, Vice President Nancy Barnes, Secretary Jane Van Dyke Commissioners, CEO/General Manager Wayne Nelson, Director of Finance Rick Dyer, Director of Energy Resources Pat McGary, Director of Information Services Mike Harris, Director of Customer Service Lisa Fix, Director of Operations Dan Krebs, Director of Water Doug Quinn, Director of Communications Lena Wittler, Corporate Communications Manager Erica Erland, Senior Manager of Customer Accounts and Energy Services Larry Blaufus, Materials and Purchasing Manager Cathy Wannamaker, Energy Resource Manager Terry Toland, Risk and Power Manager Lynn Latendresse, Manager of Energy Planning and Operations Tom Haymaker, Fleet Services Manager Paul Chamberlain, Construction Services Manager Dana Allen, Water Quality Manager Steve Prather, Communication Services Manager Heather Allmain and Assistant to CEO/General Manager Margaret Anderson.
Press Representatives: None
Others Present: Amy Hillman with Blink and Steve Kern (Materials A)
The order of business recorded below reflects the published agenda (Materials B)
At 9:00 a.m., President Malinowski called the meeting to order for the transaction of formal business.
Consideration of the Minutes of April 28, 2015
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 April 28, 2015 from the District Auditor:
Electric Revenue Fund – $6,132,361.73
Water Revenue Fund – $310,257.10
Generating System Fund – $846,228.59
For a total of $7,288,847.42
Consideration of Resolution for the 2014 Annual Conservation Report
Senior Manager of Energy Technologies and Services Larry Blaufus addressed the board. Mr. Blaufus reviewed the presentation (Materials C) regarding Clark’s 2014 annual conservation report. Clark’s conservation report summarizes 2014 conservation achievements halfway through the 2014-2015 biennium.
In the achievement section of the report, staff includes values that have been documented to date. The total electricity savings of 66,716 MWh or 7.61 aMW and utility expenditures of $7,163,156.00 are reported by customer sector (residential, commercial and industrial) Clark is not reporting any savings or cost for the agricultural sector, production efficiencies, or distribution efficiencies. Staff also included projected savings from Northwest Energy Efficiency Alliance (NEEA) as a separate category.
The annual report is due to Commerce by June 1, 2015. Staff is recommending the board adopt resolution number 7183 approving the Utility’s 2014 Annual Conservation Report to document the utility’s progress to meet the 2014-2015 conservation targets. Commissioner Van Dyke moved to approve the 2014 Annual Conservation Report and the corresponding resolution. Commissioner Barnes seconded the motion. It passed unanimously.
Consideration of 2013 Renewables Compliance and Retirement of RECs
Risk and Power Manager Lynn Latendresse addressed the board (Materials D). Clark Public Utilities is required to submit a filing with commerce demonstrating compliance with 2013 renewable standards. Clark is reporting weather adjusted no load growth and 1% cost cap compliance. The State Auditor’s office is requiring REC retirement, which will be done with added language in the final narrative to the State asserting the utility’s belief that this requirement is beyond the scope of the language contained in the Act.
Commissioner Barnes moved to approve the compliance narrative and the values contained therein. Commissioner Van Dyke seconded the motion and it passed unanimously.
Consideration of Resolution for Establishment of LUD Nos. 1210, 1211, 1212 and 1213
Construction Services Manager Dana Allen addressed the Board regarding the Establishment of Local Utility District Nos. 1210, 1211, 1212 and 1213 for street lighting.
Resolution No. 7184 – LUD No. 1210 – York Highlands 2
Resolution No. 7185 – LUD No. 1211 – Jackie’s Landing PH 6
Resolution No. 7186 – LUD No. 1212 – Felida View Townhomes
Resolution No.7187 – LUD No. 1213 – Danielle’s Journey
After the presentation by Ms. Allen, Commissioner Malinowski opened the public hearing for comment. There being no public comment, a motion was made by Commissioner Van Dyke, seconded by Commissioner Barnes, and unanimously carried that Resolution Nos. 7184-7187 (Materials E) be adopted.
Consideration of Intent to Establish LUD No. 1214
Construction Services Manager Dana Allen addressed the Board regarding the Intent to Establish Local Utility District No. 1214 for street lighting.
Resolution No. 7188 – LUD No. 1214 – Cobblestone Park at Mt. Vista PH 4
After the presentation by Ms. Allen, Commissioner Malinowski opened for comment. There being no public comment, a motion was made by Commissioner Barnes seconded by Commissioner Van Dyke and it was unanimously carried that Resolution No. 7188 be adopted and a public hearing was set for June 9, 2015 (Materials F).
Consideration of Resolution for Sole Source Designation with Pentair
Materials and Purchasing Manager Cathy Wannamaker reviewed a memo dated May 12, 2015, (Materials G) regarding the request by the River Road Generating Plant for a sole source designation with Pentair. Commissioner Barnes made a motion, seconded by Commissioner Van Dyke, and unanimously carried that Resolution No. 7189 be adopted granting sole source designation for the purchase of replacement parts for use in the low pressure steam stop/control valves manufactured by Pentair that are used at the River Road Generating Plant.
Consideration of Resolution for Sole Source Designation with Proton Energy Systems, Inc.
Materials and Purchasing Manager Cathy Wannamaker reviewed a memo dated May 12, 2015, (Materials I) regarding the request by the River Road Generating Plant for a sole source designation with Proton Energy Systems, Inc. Commissioner Barnes made a motion, seconded by Commissioner Van Dyke, and unanimously carried that Resolution No. 7190 be adopted granting sole source designation for the purchase of replacement parts for use in the Hogen “H” hydrogen generator at the River Road Generating Plant.
Consideration of Resolution for Sole Source Designation with Summit Electric
Materials and Purchasing Manager Cathy Wannamaker reviewed a memo dated May 12, 2015, (Materials H) regarding the request by the River Road Generating Plant for a sole source designation with Summit Electric. Commissioner Van Dyke made a motion, seconded by Commissioner Barnes, and unanimously carried that Resolution No. 7191 be adopted granting sole source designation for the purchase of replacement parts from Summit Electric for use in the River Road Generating Plant’s generator breaker and step-up transformers.
Charging Station Installation
Director of Operations Dan Krebs gave a presentation regarding the addition of electric vehicle charging stations at both utility locations (Materials J). Mr. Krebs provided an overview of charging stations across Washington and their use as captured by Blink, our current provider.
The board discussed the prevalence of plug-in electric vehicles in the service area and the desire for the Utility to look for some additional partnerships with businesses to install charging stations in the community. Commissioner Van Dyke made a motion to move forward with two Level 2 charging stations being installed at the Operations Center and two Level 2 charging stations with one fast charging station to be installed at the Electric Center. Commissioner Barnes seconded the motion and it passed unanimously.
March Financial Report
Director of Finance Rick Dyer addressed the board (Materials K). March had warmer and wetter weather resulting in electric revenue and power supply costs below forecast, with off system sales coming in above forecast. March residential sales were 86% of budget; commercial sales 93.8% of budget and industrial sales were right on target as compared to budget for the month. Residential growth for March was 1.47%.
For the month of March, the Electric System reported net income of $1.8 million compared to a budgeted income of $1.6 million. The increase in net income can be attributed to higher off system sales and lower power supply costs compared to budget. To date the system is roughly $4 million ahead of budget for net income, a trend that is expected to continue despite low water forecasts.
The Water System has added 149 new customers year to date resulting in an annual growth rate of 1.85%. March showed a net income loss of $60,000.00 against a budgeted income loss of $191,000.00. To date the system is ahead of budget with losses below the budgeted year to date loss of $466,000.00.
Mr. Dyer provided a review of quarterly conservation spend, to date we have used 15% of budget.
March Wholesale Operations Report
Manager of Energy Planning and Operations Tom Haymaker addressed the board (Materials L). Slice results were well above prompt month and budget forecast; in addition, loads were well below the forecast as temperatures set record low heating degree days. Pricing was stable at relatively low levels.
Mr. Haymaker reported that the River Road Generating Plant (RRGP) would be online for the months of April and June this is a change from our budget assumptions. The plant will still be down for a maintenance outage that began on May 1.
Run-off forecasts are starting to fall off a bit, January through July at the The Dalles is at 86% of normal and April through September is forecasting at 74% of normal, which is some of the lowest run off in 55 years.
Commissioner Reports and Comments
Commissioners Barnes and Van Dyke reported on their attendance at the Public Power Council Members Forum.
Commissioner Malinowski reported on his tours of Energy Northwest and Grand Coulee Dam.
Director of Water Doug Quinn shared with the board that the Department of Health presented Water Quality Manager Steve Prather with its Lifetime Achievement Award as part of last week’s Drinking Water Week celebration. The board congratulated Steve for this well-deserved honor.
Communications Services Manager Heather Allmain presented a review of this year’s Home and Garden Idea Fair (Materials M). The board noted its support for this annual tradition and congratulated Heather on her 20-year commitment to HGIF as we head into the events 25th anniversary next year.
Other Business before the Board
There being no further business before the Board, the meeting was adjourned at 11:30 a.m.