Meeting of Commissioners of
Public Utility District No. 1 of Clark County, Washington
October 3, 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 3rd day of October 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 Operations Dan Krebs, Director of Water Doug Quinn, Director of Communications Lena Wittler, Director of Information Services Mike Harris, Director of Customer Service Lisa Fix, Director of Energy Resources Dan Bedbury, Director of Engineering Cal Morris, Corporate Communications Manager Erica Erland and Assistant to CEO/General Manager Margaret Anderson.

Press Representatives: None

Others Present: None (Materials A)

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

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 September 19, 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 October 3, 2017, from the District Auditor:

Electric Revenue Fund – $9,862,080.92
Water Revenue Fund – $236,906.55
Generating System Fund – $509,611.95

For a total of $10,608,599.95

Consideration of Resolutions of Establishment for LUD No. 1224
Director of Engineering Cal Morris addressed the board regarding the Establishment of Local Utility District No. 1224 for street lighting.

Resolution No.7398 – LUD No. 1224 – Hidden Garden PH 3

After the presentation by Mr. Morris, Commissioner Van Dyke opened for comment. There being no public comment, a motion was made by Commissioner Barnes, seconded by Commissioner Malinowski, and it unanimously carried that Resolution No. 7398 be adopted (Materials C).

August Financials
Director of Finance Rick Dyer addressed the board (Materials D). August had warmer and 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. August residential sales were 117.3% of budget, commercial sales were 109.2% and industrial sales were 103.4% of budget. August ended with a net income loss of $2.7 million compared to a budgeted loss of $2.8 million. Year to date net income is $23.5 million ahead of budget.

The Water System has added 807 new customers year-to-date, resulting in a growth rate of 3.51%. The net income for August was $824,000 compared to a budgeted net income of $533,000. To date, the Water System is showing an annual net income of $2.37 million compared to a budgeted net loss of $18,000.

August Wholesale Operations
Manager of Energy Planning and Operations Tom Haymaker addressed the board (Materials E). Mr. Haymaker updated the board on power supply, noting that Slice performed 13 MWa below prompt month and budget forecasts. For the ninth month in a row, loads continued to remain above budget. A new summer peak of 864 MW occurred on August 3, there were ten hours in the month that broke previous summer peaks. Power prices in August were high at both the beginning and end of the month.

Mr. Haymaker reported on an upcoming change in gas transportation rates that make it less expensive to run the River Road Generating Plant. The projected savings is $500,000 a year and will go into effect in 2018; this change will also lower the economic heat rate from 7.8 MWh/MMBtu on average to 7.5.

Commissioner Reports and Comments
The board thanked staff for the work on the Power Supply Workshop; they all enjoyed the speakers and the topics.

Staff Reports
Director of Water Doug Quinn provided an update on legislative issues surrounding water rights in the State of Washington. Mr. Quinn also provided an overview on the Water Workshop that the Washington PUD Association held the previous week.

Other Business before the Board
There being no further business before the Board, the meeting was adjourned at 10:15 am.