1 2 3 4 5 6 7  MINUTES OF THE MEETING OFTHE BOUNTIFUL CITY POWER COMMISSION May 23, 2023- -8:00 a.m. Those in Attendance  8 Power Commission 9 Paul C. Summers, Chairman 10 Susan Becker 11 Richard Higginson, Councilman 12 David Irvine 13 John Marc Knight 14 15 16 Excused 17 Dan Bell, Commissioner 18 Jed Pitcher, Commissioner 19 20 21 WELCOME 22 24 26  Power Department Allen Johnson, Director Dave Farnes Jess Pearce Luke Veigel Tyron Hansen Recording Secretary Nancy T.Lawrence Visitors Gary Davis, City Resident Ron Mortensen, City Resident  Chairman Summers called the meeting to order at 8:00 a.m. and welcomed those in  23 attendance. The invocation was offered by Commissioner Becker.  25 MINUTES. April11,2023  Minutes ofthe regular meeting oft the Bountiful Power Commission held April 11,  27 2023, were presented, and unanimously approved as corrected on a1 motion made by 28 Councilman Higginson and seconded by Commissioner Becker. Commissioners Becker,  29 Irvine, Knight, Summers and Councilman Higginson voted "aye". 31 BUDGET REPORT-) YEAR TODATE 9-MONTH PERIOD  30 32  Mr. Hansen presented a summarized Budget Report for the Fiscal Year-to-date 9-  33 Month period ending March 31, 2023. Total Revenues YTD were $24,169,621, above its 34 HAB by $1,810,104. Major items above budget were: Electric Metered Sales, at $1,239,699 35 above budget by 6.3%; Air Products income, at $252,658, above budget with an average 36 load factor of72.4% for the YTD period, compared to 58% for this time last year; 37 Contribution in Aid to Construction at $102,800, above its HAB as a result of $48,000 for 38 the MRI at Renaissance, and $180,000 for the Renaissance Town Center; and Interest 39 Income on Investments at $199,449, with March interest allocation of$11,000. 42 Major items (above) budget included Power Costs Expense at ($7,556,816); Insurance 43 Expense at ($45,221); and the Transfer to the General Fund Expense at ($29,7889). Major 44 items below budget were. Distribution Expense at $315,824; Street Light Expense at 45 $130,959; Transformers Expensc at $132,362; and Mcter Expense at $104,545.  40 41  Total Operating Expenses YTD were $26,218,762, above the HAB by ($6,603,798).  46  Page 1 of4    (PC minutes May 23, 2023)  1 4 5  Total Capital Expenditures YTD were $716,751 and included: $432,000 for Feeder  2 574; $135,000 for Feeder 576; $49,000 for Renaissance; $35,000 for the Renaissance MRI;  3 $17,000 for the Main Street MRI; and $23,000 for a truck body deposit.  Labor and Benefits Expense YTD (included in Operating Expenses YTD and Capital  6 Expenditures YTD presented above) was $3,376,664. Asof1 18 March 2023, 71.5% or 7 $3,840,090 of the total Labor and Benefits budget could have been spent; the actual TL&B  8 was $463,426 below that target.  9 10  The Net Margin YTD was ($2,765,893), as above-budget revenues and many below-  11 budget operating expenses weren'te enough to overcome the high-power costs. The total 12 Cash and Cash Equivalents were at ai net $16,964,388 at month end, down $3,430,525 from 13 $20,394,914 at 30 June 2022 and $1,856,388 above the $15,108,000 total reserved cash  14 requirement. 15 16  Commissioner Becker asked how much the rate increase will generate/month. Mr.  17 Johnson said that it varies from month to month, but for. June 2023 the estimate is $400,000. 18 She expressed concern that the proposed rate increase may not be enough to both "fill the 19 gap" and cover operating expenses. Mr. Johnson said the 15%i isi not putting money to cover 20 capital improvements back up. He also noted that it is anticipated that June, July and 21 August will still be negative. In addition to the increased power costs, we lose solar at the 22 time we: need it to cover our peak. Itisa anticipated that the budget, as presented for the year, 23 will be covered by the proposed 15% rate increase. Iti is also anticipated that another rate 24 increase will be needed next year to start funding the necessary capital improvements. The 25 cost of our resources at that time, and in anticipation ofai rate increase from CRSP in 26 October, will give more definitive direction in the amount of another rate increase.  27 28  Commissioner Irvine made a motion to accept the Budget Report for the Year-to-  29 Date 9-Month Period ended March 31, 2023, as presented. Councilman Higginson seconded 30 the motion and voting was unanimous. Commissioners Becker, Irvine, Knight, and  31 Summers, and Councilman Higginson voted "aye".  32 34  33 RESOURCE UPDATE  Mr. Johnson led a discussion regarding power resources, beginning with a solar  35 update. Red Mesa Solar started operating on April 18,2023. This resource has aj pre- 36 payment option which offers a 10-12 percent discount and will require further discussion 37 and tax Compliance Certificates from cities. We will need to approve this by August 2023  38 and will discuss it further in the June meeting.  39 40 43 44  The Steel Project (6 MW) is having problems with delivery of solar panels but is  41 tentatively scheduled to bei in operation October 2023. Solar panels will be coming from  42 Solar Space in Cambodia.  We are looking at a waste coal project, Sunny Side Coal, which is located near  45 Price, Utah. Iti is fairly small (5 MW's, at $72/MWh) and would be only for three years 46 (September 2023-2026). UAMPS Board approval is needed by June 22, 2023, and the  Page 2 of4    (PC, minutes May 23, 2023)  Governing Board approvals are needed by August 3, 2023. This plant has been operational 2 for some time and has availability due to other users moving away from a coal resource. 5 MWin a larger natural gas plant (which we would participate in via UAMPS) for the 6 purpose of covering peaking power; and (2) participation in the Nextera solar project which 7 includes 10 MW's with 5 MW's batteries. The average cost (including both the solar field  3 4  Mr. Johnson noted that other future power options that are being considered is (1)15  8 and batteries) is $691 MWh. This project is located in Iron County.  9 10  Coal resources are limited due to the Lila Canyon mine fire and iti is not producing  11 any coal at this time. The Hunter plant (which is scheduled through UAMPS) did not offer 12 any power for the month of May and there will be no LLH power scheduled from June -  13 September due to the unavailability of coal.  14 15  IPP is also having problems getting coal due to delivery issues, as well as the fact  16 that the coal which is available has been sold to other states and China. They are currently 17 operating one unit at minimum through June, with the plan to operate two units from July - 18 October. We currently have 8 MW's called back but are only getting 1.21 MW and the 19 summer season ends September 25, 2023. Unless we can line up other resources, we may be  20 int trouble during the hot summer months.  21 22  We have 4 MW called back for the winter season; ifIPP is available, we could  23 increase another 4. MW ori ifwe don'tneed this resource, we could turn it back to the group. 24 Inasmuch as we are only getting 1.2 MW of our 8 MW entailment, wel have purchased 25 power for the winter, and Irecommend that we give all ofour 41 MW back to the California 26 group. Then we can reassess our position at Christmastime for next summer and winter 27 seasons. Mr. Johnson showed at time-lapse video of the construction at IPP (last fall until 28 this past Monday, May 25th). The new plant is scheduled to be online in June 2025 The gas 29 line appears. tol be about half-way installed and the next bonding date is August 14-18, 2023. 30 Councilman Higginson asked ift there is a forecast on coal/delivery issues being resolved. 31 Mr. Johnson said that economics oft the railroad has dictated the current position ofr railroad  32 availability and most likely will continue to be a driving factor.  33 34 37 38  The Echo and PineView hydros are currently operating but are managing the flows  35 based on flood control measures. Itis anticipated that both dams will fill and spill this year.  36 This could result in both hydros being restricted.  Mr. Johnson reviewed that PacifiCorp has announced their new. losses (from 3.75%  39 to 4.3%), which will be passed through UAMPS, and starting in June 2023, will result in 40 higher overall power costs. Power costs associated with Lake Powell are anticipated to 41 continue to increase, based on the fact that it could take 20 years to fill. Proposed changes 42 to Greenhouse Gas Rules were reviewed and Mr. Johnson reported that they will not affect 43 the Plant; however, they will affect IPP and Hunter and at this time are more theoretical than  44 actual. They have not been approved.  45  Page 3 of4    (PC minutes May 23, 2023)  Subscription is still aj problem with the Carbon Free Project; however, we have  2 signed a nondisclosure agreement for this project. The outcome ofthis project should be  3 known by December 2023.  4 5  Commissioner Irvine expressed concern aboul the economic picture ofBCL&P with  6 resources facing sO many unknown issues. He asked iftime-of-day metering had been 7 considered ori is an option for Bountiful residents. Mr. Johnson said that the meters 8 currently in use do not support time-of-day, and to change to meters capable of that would 9 bea $61 million upgrade. Commissioner Irvine stated that ifall wel have to offer is increased 10 rates, he would make ai motion asking stafft to evaluate what it would take to implement 11 time-of-day pricing and report back to the Commission for study and recommendation to the 12 City Council by October 2023. It was noted that PacifiCorp currently has the capability to 13 dot time-of-day metering. Councilman Higginson seconded the motion. Following a brief 14 discussion, the Commission voted unanimously in favor oft the motion. Commissioners 15 Becker, Irvine, Knight and Summers, and Councilman Higginson voted "aye". 17 Thefollowing items were included in the packet, but not discussed in the meeting:  16 18 20 21 22 23 24 26 27 29 30 a.m. 31 32 ADJOURN 33 36 37 38 39  19 POWER SYSTEMSOPERATIONS REPORT  a. March 2023 Resource Reports b. April 2023 Lost Time/Safety Reports C.A April 2023 Public Relation Reports d. March 2023 Outage Reports  25 OTHER BUSINESS  None  28 NEXT POWER COMMISSION  The next meeting oft the Power Commission will be held on. June 27,2023, at 8:00  The meeting adjourned at 9:35 a.m. on a motion by Commissioner Irvine and  34 seconded by Councilman Higginson. Voting was unanimous with Commissioners Becker,  35 Irvine, Knight, and Summers and Councilman Higginson voting "aye".  Paul C. Summers, CHAIRMAN ADL  Page 4 of4