1 2 3 4 5 6 7  MINUTES OF THE MEETING BOUNTIFUL CITY POWER COMMISSION August 22, 2023-8:00 a.m. Those in Attendance  OFTHE  8 Power Commission 9 Paul C. Summers, Chairman 10 Susan Becker, Commissioner 11 Dan Bell, Commissioner 12 Richard Higginson, Councilman 13 David Irvine, Commissioner 14 John Marc Knight, Commissioner 15 Jed Pitcher, Commissioner  Power Department Allen Johnson, Director Dave Farnes Alan Farnes Tyrone Hansen Jess Pearce Luke Veigel Recording Secretary Nancy T.Lawrence Visitors  16 17 18 19 20 21 22 WELCOME 23 25 27  Ron Mortensen, City Resident  Chairman Summers called the meeting to order at 8:00: a.m. and welcomed those in  24 attendance. The invocation was offered by Councilman Higginson.  26 MINUTES. June 27,2023  Minutes ofthe regular meeting of the Bountiful Power Commission held June 27,  28 2023, were presented, and unanimously approved as written on a motion made by 29 Commissioner Becker and seconded by Commissioner Bell. Commissioners Bell, Becker, 30 Irvine, Knight, and Summers, and Councilman Higginson voted "aye". Commissioner  31 Pitcher was not in the room and did not vote.  32 34  33 BUDGET REPORT- - YEAR TO DATE 12-MONTH PERIOD  Mr. Hansen presented a summarized Budget Report for the Fiscal Year-to-date 12-  35 Month period ending June 30, 2023. He pointed out that the Budget Report for. June was 36 preliminary; a lot of year-end adjustments still need to be booked. Also, the Historically 37 Allocated Budget matches the Budget in June. Total Revenues YTD were $31,117,819, 38 above its HAB by $507,704. Major items above budget were: Electric Metered Sales, at 39 $1,265,071, above budget by 4,9%; Air Products income, at $314,453, above budget with an 40 average load factor of70.1% for the YTD period, compared to 58.2% for this time last year; 41 Contribution in Aid to Construction at $74,957, above its HAB as ai result of $48,000 for the 42 MRI at Renaissance, and $180,000 for the Renaissance Town Center; and Interest Income 43 on Investments at $242,222. The. June interest allocation hasn't been posted yet. Use of 44 Retained Earnings $(1,374,894) will be used to cover the cost of several capital projects not  45 covered by the Contribution In-Aid to Construction.  46  Page 1 of5    (PCminutes. August 22, 2023)  Total Operating Expenses YTD were $33,145,276, above the HAB by ($5,439,661).  2 Major items (above) budget included Power Costs Expense at ($7,869,546), above its HAB 3 by Power Generation at ($3.8M) and Power Resources at ($4.0M) over; Vehicle Expense 4 was over by $(11,216); credit card merchant fees were above by $11,616); Insurance 5 Expense was above by $(45,221); Transfer to the General Fund--S(66,507); and Amortization oft the Craig-Mona Line (which was not budgeted)-s483,872). Expenses 7 below budget included Distribution Expense = $403,166, Street Light Expense-$143,140, 8 Substation Expense-s102,659, Meters Expense-s138,410, and Computer Expense-- 9 $115,220. It was noted that the Contribution to the General Fund was brought up to  10 actual-not projected.  11 12 15 16  Total Capital Expenditures YTD were $775,104 and included $441K for Feeder 574,  13 $125K for Feeder 576, $49K for Renaissance, $35K for the Renaissance MRI, $17K for the 14 Main Street MRI, $23K truck body deposit and $40K for Feeder 373/Stone Creek. 17 Expenditures YTD presented above) was $4,740,968. As of30June 2023, 100% or 18 $5,370,241 ofthe total Labor and Benefits budget could have been spent; the actual TL&B  Labor and Benefits Expense YTD (included in Operating Expenses YTD and Capital  19 was $629,273 below that target.  20 21  The Net Margin YTD was ($2,802,561), as above-budget revenues and many below-  22 budget operating expenses weren't enough to overcome the high power costs. The total 23 Cash and Cash Equivalents were at ai net $16,680,052 at month end, down $3,714,862 from 24 $20,394,914 at 30 June 2022 and $1,572,052 above the $15,108,000 total reserved. cash  25 requirement. 26 27  Discussion followed regarding how the rate increase will affect the budget. The rate  28 increase will be effective in June. Commissioner Irvine referred toj past discussion related to 29 the presentation which was made in the Seattle conference regarding cash flow. He asked if 30 Mr. Johnson and the BCL&P staff could walk the Commissioners through that presentation 31 in a future meeting. Mr. Johnson suggested that this could be included in the September 32 meeting. Commissioner Pitcher then made ai motion to approve the presentation oft the 33 Budget Report. Councilman Higginson seconded the motion and voting was unanimous. 34 Commissioners Becker, Bell, Irvine, Knight, Pitcher and Summers, and Councilman  35 Higginson voted "aye".  36 38  37 SOLAR FEED-IN-TARIFF RATE ADJUSTMENT  Mr. Johnson reviewed that in the fiscal year 2018 there was an overall rate increase  39 and changes in rates, which included a "feed-in-tariff" rate for new solar customers. In 40 October 2021, another rate was approved (Hybrid Net Metering Solar Rate) which allows 41 customers to use their own power first, with the following conditions: Power generated and 42 used behind the Net meter remains the customers; Power generated by the customer and 43 purchased by the Utility will be at $0.05/kwh; and Power purchased by the customer will be  44 at the current applicable residential or commercial rate.  45  Page 2 of5    (PC minutes. August 22, 2023)  1 4 5  Current Feed-in-Tariff customers can opt to change to the new: format, ift they desire.  2 Current Net Metering customers rates will be adjusted to match the new. Hybrid Net Metered 3 inJuly 2030. At that time, all Net Metered customers will be on the same rate.  There are currently 43 Feed-in-Tariff customers on our system. Their rates have not  6 been adjusted during the past two rate adjustments. Because they are: not able to use their 7 own Solar power before selling it to the City, we are proposing that their rates be changed 8 for the credit they receive, as follows (and would reflect the current approved residential  9 rates): 10 11 12 13 15 Resolution. 16 17  $kWh credit 12 am - 12 pm from $0.0400 to $0.0520 $kWh credit 12 pm - 4 pm from $0.0600 to $0.0786 $kWh credit 4 pm - 12 am from $0.0925 to $0.1211  14 This change would be: subject to City Council approval and would need tol be adopted viaa a  Commissioner Bell asked if consideration has been given to also reimbursing these  18 customers retroactively for the difference in credit they received. Mr. Johnson said he 19 would be supportive ofthis reimbursement; however, he pointed out that only about 20 20 percent of their usage is during the time of day that solar is generated and not during peak 21 hours. Following discussion, Commissioner Irvine made ai motion to support the Staff 22 recommendation to change the rates for the credit the Feed-in-Tariff customers receive (as 23 noted above). Councilman Higginson seconded the motion which carried unanimously. 24 Commissioners Becker, Bell, Irvine, Knight, Pitcher and Summers, and Councilman 25 Higginson voted "aye". (It was noted that these customers can opt to change to the new 26 Hybrid Net Metering rate; however, that would require additional investment on their part to  27 make the necessary equipment changes, etc.)  28 29  Commissioner Bell made a second motion that we go back two years and reimburse  30 the Feed-in-Tariff customers for credit which was lost due to the rate changes that occurred. 31 Councilman Higginson seconded the motion which carried unanimously. Commissioners 32 Becker, Bell, Irvine, Knight, Pitcher and Summers, and Councilman Higginson voted "aye".  33 34 36  35 PINEVIEW GENERATOR UPDATE  Mr. Farnes reviewed that the Pineview hydroelectric power plant experienced a  37 generator trip offline in mid-July. After several days ofinspections and testing, the 38 generator was restarted and then it tripped offline again. A company that specializes in 39 generator maintenance and repair (Sidewinders), assisted with trouble shooting the problem. 40 It was found that the wires that ran through the rotor shaft needed to be replaced (color 41 photos included in the packet) and this was done to get the generator back online. This was 42 at temporary repair, and ai more permanent repair should be completed when we are: in a non- 43 generating period. We have requested a quote from Sidewinders to do both a permanent 44 wire repair and to also clean the contamination off the rotor and stator. We will bring this  45 item back to the Commission when we have cost information,  46  Page 3 of5    (PC, minutes August 22, 2023)  OZONE NONATTAINMNENT POWER PLANT  2  Mr. Farnes reviewed that we have received al letter from the Utah Division of Air  3 Quality (UDAQ) indicating that the Wasatch Front has been identified as a Nonattainment 4 Area. This will require Bountiful to either reduce our Potential to Emit (PTE) froma 5 maximum of 65 tons of nitrogen oxides (NOx) to somcthing lcss than 501 tons. Ifwc dccidc 6 tol keep our PTEI NOx at 65 tons, we will be classified as a major source (of potential 7 pollution) and we will be required to submit documentation on available control technology 8 that could reduce our emission levels. The potential cost to install the additional pollution  9 equipment as a major source is $3- -$3.5 million per unit.  10 11  We contacted Stantec to assist in evaluating our position, and we have determined  12 that reducing our NOx emission to 48 tons would not have a significant impact on our plant. 13 We have also met with the UDAQ staff, and they support our proposal to reduce our PTE 14 and remain as a' Title 4 classification. To officially take this position, we must submit a  15 Letter of Intent to UDOT by the end of October 2023.  16 17  This matter has been reviewed by the Power Department staff and the City Manager  18 and we have determined that we could increase our power generation by about 51 times what 19 we have been doing without any Air Quality problems. We do not anticipate increasing our 20 plan generation by that much, and these generation units are more valuable to us as peak 21 shaving generation rather than base load generation. Based on this analysis, the Staff 22 recommends that the Power Commission send direction to the City Council and the Power 23 Director to submit al Letter of Intent to reduce our PTE to 48 tons ofNOx. Councilman 24 Higginson made ai motion to support the Staffrecommendation and send al letter to the State 25 telling them we intend tol lower our PTE as stated above. Commissioner Knight seconded 26 the motion and voting was unanimous. Commissioners Beck, Bell, Irvine, Knight, Pitcher  27 and Summers, and Councilman Higginson voted "aye".  28 30  29 STEELSOLAR CONTRACT APPROVAL/RESOURCE UPDATE  Mr. Johnson reported that wel have been following the Sunnyside coal project, which  31 isa waste coal project located near Price. This would have been a 3-year contract priced at 32 about $0.08. They have put sO many contingency issues in place that UAMPS as a group 33 decided to take this project offt the table. UAMPS will be looking at 5-year contract power,  34 currently available at about the same price ($0.08).  35 36 37 38  The Red Mesa solar project is currently online.  The Steel Solar project, which should be online, is having difficulty with financing.  39 The pricing will be the same, but we will need to change some oft the language int the 40 contract. Another issue is storage and they have included a battery-storage option. And, 41 like cell phone batteries, solar batteries lose theirefficiency over time. Solar batteries 42 degrade at about % percent/year. Another concern about solar batteries is that they are very  43 volatile. 44 45  There are two geo-thermal plants ini in New Mexico that we are looking at, both at 5  46 mW and at a cost of$0.09-$0.10. Both would be online by 2027.  Page 4 of5    (PCminutes August. 22, 2023)  1 4 5  The coal resource is extremely limited due to both supply from the mine and  2 transportation. And more legislative issues have arisen with IPP. We did not call any power  3 back for this winter.  Subscription is still ai major issue with the NuScale CFPP project and many of those  6 interested have a fairly complicated process in getting the approval process done in a timely 7 manner. Ifwe stay with the project until December, there will be no penalty to withdraw.  8 Hei recommended that we continue to follow this project. 11 inn managing power resources on a daily basis.  9 10 12 14 16 17 18 19 20 22 23 25 26 8:00: a.m. 27 28 ADJOURN 29  Mr. Johnson concluded' by sharing data which is used by himself and the dispatchers  13 Thefollowing items were included in the packet, but not discussed in the meeting:  15 POWER SYSTEMS OPERATIONS REPORT  a. May and June 2023 Resource Reports b.J July 2023 Lost' Time/Safety Reports c.J July 2023 Public Relation Reports d.. June 2023 Outage Reports  21 OTHER BUSINESS  None  24 NEXT POWER COMMISSION  The next meeting of the Power Commission will be held on September 26, 2023, at  The meeting adjourned at 9:35 a.m. on ai motion by Commissioner Pitcher and  30 seconded by Councilman Higginson. Voting was unanimous with Commissioners Becker, 31 Irvine, Knight, and Pitcher, and Councilman Higginson voting "aye". Commissioner Bell 32 had been excused from the meeting at 9:30 a.m. and was noti included in the vote.  33 34 35 36 37  Paul  RhpaL C. Summers, CHAIRMAN  Page 5of5