Meeting of Commissioners of
Public Utility District No. 1 of Clark County, Washington
November 21, 2017

A meeting of Commissioners of Public Utility District No. 1 of Clark County was held in the Operations Education Center, Vancouver, Washington, on Tuesday, the 21st day of November at the hour of 9:00 a.m.

Present: President Jane Van Dyke, Vice President Jim Malinowski Commissioners, CEO/General Manager Wayne Nelson, Director of Operations Dan Krebs, Director of Finance Rick Dyer, Director of Communications Lena Wittler, Director of Information Services Mike Harris, Director of Water Doug Quinn, Director of Customer Service Lisa Fix, Director of Energy Resources Dan Bedbury, Director of Engineering Cal Morris, Corporate Communications Manager Erica Erland, Manager of Energy Planning and Operations Tom Haymaker, Materials and Purchasing Manager Cathy Wannamaker, Senior Manager of Large Industrial/Conservation Planning Larry Blaufus, Energy Services Project Manager Matt Babbitts, Fleet Manager Paul Chamberlain and Assistant to CEO/General Manager Margaret Anderson.

Press Representatives: None

Others Present: Rick Syring (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 meeting.

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

Public Comment on Non Agenda Items
There were no comments.

Consideration of the Minutes of November 7, 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 November 21, 2017, from the District Auditor:

Electric Revenue Fund – $11,098,265.58
Water Revenue Fund – $291,540.67
Generating System Fund – $358,989.83

For a total of $11,748,796.08

Consideration of Resolutions of Establishment of LUD Nos. 1298 and 1303
Director of Engineering Cal Morris addressed the board regarding the Establishment of Local Utility District Nos. 1298 and 1303.

Resolution No. 7408 – LUD No. 1298 – Parker’s Abby PH 2
Resolution No. 7409 – LUD No. 1303 – Peach Springs PH 1

After the presentation by Mr. Morris, Commissioner Van Dyke opened the public hearing for comment. There being no comment, a motion was made by Commissioner Malinowski, seconded by Commissioner Van Dyke, and unanimously carried that Resolution Nos. 7408 and 7409 be adopted (Materials C).

Consideration of Bid Award No. 526 – 60’ Digger Derrick with Flatbed Body
Materials and Purchasing Manager Cathy Wannamaker reviewed the memo dated November 21, 2017, detailing the bid results (Materials D). Commissioner Malinowski moved to recommend that Bid No. 526 be awarded to the low evaluated bidder, Altec Industries, Inc. in the amount of $248,263.00 plus applicable taxes. Commissioner Van Dyke seconded the motion, and it passed unanimously.

Consideration of 2017 Conservation Potential Assessment and I-937 Conservation 2018-2019 Biennial Target
Senior Manager of Large Industrial Customers and Conservation Planning Larry Blaufus addressed the board (Materials E). After a review of the presentation, Mr. Blaufus recommended the approval of the 2017 Conservation Potential Assessment and the 2018-2019 I-937 conservation target of 9.79 aMW and the 2018-2027 ten-year potential of 46.49 aMW. These targets were established using the Utility Analysis Option 3 from the Conservation Potential Assessment.

Commissioner Malinowski moved for the adoption of the Clark Public Utilities 2017 Conservation Potential Assessment and the 2018-2019 I-937 conservation target of 9.79 aMW and 2018-2027 ten–year potential of 46.49 aMW using the Utility Analysis Option 3. Commissioner Van Dyke seconded the motion and it passed unanimously.

The board thanked staff for their continued work on conservation.

Consideration of Resolution to Establish Avoided Cost Rate
Energy Services Project Manager Matt Babbitts provided a presentation to the board that outlined the establishment of an avoided cost rate (Materials F). The avoided cost rate was calculated by a third party consultant using the Bonneville Power Administration (BPA) Block power contract pricing of $35.48 per MWh of energy and $0.78 per MWh of transmission, for a total avoided cost rate of $36.26.

Commissioner Malinowski moved to approve the resolution establishing the utility’s avoided cost rate for power purchases from qualified facilitates under PURPA 210. Commissioner Van Dyke seconded the motion it passed unanimously.

Proposed 2018 Budgets for the Electric, Generating and Water Systems
Director of Finance Rick Dyer provided an overview of the proposed 2018 budgets for the Electric, Generating and Water Systems (Materials G). Mr. Dyer will back before the board to ask for direction regarding the use of the low income tax credit and the approval of these budgets at the next Commission meeting on Tuesday, December 5, 2017.

October Financials
Director of Finance Rick Dyer addressed the board (Materials H). October had cooler and wetter weather resulting in electric revenue above forecast. Mr. Dyer reported that both system sales and off system sales were above budget for the month. October residential sales were 101.2% of budget, commercial sales were 104.9% and industrial sales were 107.9% of budget. October ended with a net income loss of $76,000 compared to a budgeted loss of $1.9 million. Year-to-date net income is $26.5 million ahead of budget.

Mr. Dyer provided an update on conservation spending. To date it is 73% of budget; however, energy savings is greater than projected.

The Water System has added 946 new customers year-to-date, resulting in a growth rate of 3.65%. The net income for October was $955,000 compared to a budgeted net income of $457,000. To date, the Water System is showing an annual net income of $4.1 million compared to a budgeted net income of $1.18 million.

October Wholesale Operations
Manager of Energy Planning and Operations Tom Haymaker addressed the board (Materials I). Mr. Haymaker updated the board on power supply, noting that Slice performed 7 aMW below prompt month and 4 aMW above budget forecasts. For the eleventh month in a row, loads continued to remain above budget. Power prices in October remained flat.

Mr. Haymaker provided an overview of the 2017 Bonneville Power Administration Slice true up calculation and provided the board with an update on recent gas purchases.

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

Commissioner Van Dyke reported on her attendance at several Columbia River Economic Development Council meetings.

Staff Reports
Director of Finance Rick Dyer provided the board with a review of the recent State Auditor’s Office audit (Materials J).

Other Business before the Board
There being no further business before the Board, the meeting was adjourned at 10:45 am.