I 2 3 4 5 6  MINUTES OF THE MEETING OF THE THE. BOUNTIFUL CITY POWER COMMISSION January 24, 2023 - 8:00 a.m. Those in Attendance  7 Power Commission 8 Paul C. Summers, Chairman 9 Susan Becker 10 Dan Bell 11 Richard Higginson, CC Rep* 12 David Irvine 13 Jed Pitcher 14 15 Excused 17 18 *via Zoom 19 20 WELCOME 21 23 25.  Power Department Allen Johnson, Director Alan Farnes David Farnes Tyrone Hansen Jess Pearce Luke Veigel Recording Secretary Nancy T. Lawrence  16 John Marc Knight, Commissioner  Chairman Summers called the Power Commission meeting to order at 8:00 a.m. and  22 welcomed those in attendance. The invocation was offered by Commissioner Becker.  24 MINUTES, NOVEMBER 22,2022  Minutes of the regular meeting of the Bountiful Power Commission held November  26 22, 2022, were presented, and unanimously approved as written on a motion made by 27 Commissioner Pitcher and seconded by Councilman Becker. Commissioners Becker, Bell,  28 Pitcher and Summers and Councilman Higginson voted "aye". 30 ELECTION FOR CHAIRMAN-VICE CHAIRMAN  29 31  Mr. Johnson noted that it is time to elect officers for the Power Commission and he  32 opened the floor to nominations for the offices of Chairman and Vice Chairman. 33. Commissioner Pitcher made a motion to re-elect Paul Summers as Chairman and Susan 34 Becker as Vice Chairman. Commissioner Bell seconded the motion and voting was  35 unanimous in the affirmative.  36 38  37 BUDGET REPORT -YEARTODATE 51 MONTH PERIOD  Mr. Hansen presented a summarized Budget Report for the Fiscal Year-to-date 5-  39 Month period ended 30 November 2022. Total Revenues YTD were $14,315,133 above its 40 HABI by $1,181,364. Major items above budget were: Electric Metered Sales, above its 41 HABI by 6.4% -- $747,374; Air Products, with an average load factor of79.0% - above its 42 HABI by $194,333; Contribution in aid to Construction was above its HAB by $160,653; 43 Interest Income on Investments was above its HAB by $70,357--the September allocation  44 was $36,000. 45 46  Total operating expenses YTD were $13,242,297, above its HAB by ($1,985,821).  47 Major items (above) their HABS were: Power Costs, (above) their HABs by $(2,646,520),  Page 10 of4    (PC minutes. January. 24, 2023)  1 which included Power Generation- ($1.5M)overand Power Resources ($1.1M)- -over.  2 Insurance Expense was above its HAB by $(45,876).  3 4  Major Operating Expenses below the HABs included Hydro Transmission 5 Expense, below by $14,938; Distribution Expense, below by $236,085; Street Light Expense, below by $156,685; Transformers Expense, below by $91,635; Substation 7 Expense, below by $25,372; Meters Expense, below by $54,260; and Computer Expense,  8 below by $49,735.  9 10 12 13 16 17 19 20  Total Capital Expenditures were $688,857 and included: $430K for Feeder 574, Total Labor & Benefits YTD expenses was $1,732,240. As of121 November 2022,  11 $133K for Feeder: 576, $47K for Renaissance, and $34K for the Renaissance MRI.  14 37.0% or $1,986,254 of the total Labor and Benefits Expense budget could have spent; the  15 actual TL&B was $254,014 below that target.  The Net Margin for the YTD was $383,978, down $(950,199) as on-budget  18 revenues plus many low operating expenses were partially offset by high power costs. 21 from $20,394,914 at 30 June 2022 and $5,545,290 above the $15,108,000 total reserved 22 cash requirement. Major sources and (uses) of cash at month end compared to fiscal year- 23 end 2022 included: $596,484 decrease in total Accounts Receivable; $(109,046) increase in 24 total Inventories; $209,844 increase in total Accounts Payable; and $(245,271) decrease in 25 Accrued Benefits and Payroll. Commissioner Pitcher motioned to accept the Budget Report, 26 as presented. Commissioner Bell seconded the motion and voting was unanimous with 27 Commissioners Becker, Bell, Irvine, Pitcher and Summers and Councilman Higginson  Total Cash and cash equivalents were a net $20,653,290 at month end, up $258,377  28 voting "aye". 29 30  Discussion followed, and it was noted that Net Margin is anticipated to be lower this  31 year than last year mainly due to energy costs. Mr. Johnson stated that the average energy 32 cost in December was $.25/kWh and we are selling that to our customers for $.09/kWh. 33 Commissioner Bell made a motion to accept the Budget Report, as presented. 34 Commissioner Irvine seconded the motion and voting was unanimous. Commissioners 35 Becker, Bell, Irvine, Pitcher and Summers and Councilman Higginson voted "aye".  36 38  37 2023CALENDAR UPDATE  Mr. Johnson referred tot the 2023 Power Commission Schedule (previously  39 approved) and noted that the Joint Meeting with the City Council in April has been 40 scheduled for the 2nd Tuesday, April 11"h. He also pointed out that the February meeting 41 will be on the third Tuesday, February 21st and thel November meeting will be on the 42 third Tuesday, November 219t, a departure from the normal fourth Tuesday meeting date.  43 45  44 RESOURCE UPDATE  Mr. Johnson reported that he had met with the City Council at their retreat and gave  46 ap presentation, and he then shared this same presentation with the Power Commission. He  Page 2 of4    (PCI minutes January 24, 2023)  reviewed $/MWh pricing for the month of December, noting prices as high as nearly 2 $500/MWh on some days for UAMPS Unplanned Pool Pricing. He also referenced 3 UAMPS Monthly Average Flat Market prices between 1995 and 2022, UAMPS Yearly 4 Average Flat Market Price for the same time period, and general Market Prices for the 5 period May - September 2022. He noted that BCL&P made considerable savings in 6 September 2022 ($1,841,636) by running the plant, and also by interrupting Air Products 7 ($504,171 saving in one week), resulting in at total savings of $2,345,807.  8 9  Mr. Johnson then reviewed additional savings to BCL&P through the use of the IPP  10 resource ($875,709) and he used a bar chart to demonstrate how the IPP resource influenced 11 this savings. A pie chart was used to show relative percentages of! power resources: PX 12 44%, CRSP 25%, Hydro 3%, Plant 14%, IPP 6%, and Solar 8%. Due to a 2-year emergency 13 order to lower power production, the CRSP resource was reduced in December 2021 by 14 50%. Projections for CRSP were then reviewed for the next 24-month period.  15 16  Red Mesa Solar is scheduled to start supplying power in March 2023 and there is an  17 estimated delay with the Steel project until January 2024. The Hydro update included 18 snowpack at 197% for year, with Echo currently running at 400 KW. The San Juan plant 19 shut down in September 2022 and the projected Enchant project (converted San Juan) is no 20 longer viable. IPP repowering is still scheduled tol be online June 2025; however, coal 21 delivery is uncertain due to Union Pacific not being able to make deliveries, the Lila mine is 22 still not supplying coal, and contracts are being worked on to get coal from Wyoming. 25 We currently have contracts June through September (summer 2023 gas will be $5.55 plus 26 delivery). 5-Year Pool Purchases for LLH and HLHK kW were presented on a chart for the 27 period(s) April 2022 - March 2027, anticipating 7000 LLHI kW and 12,000 HLH for all 28 months except. December and. January at 17,000 HLH). Prices varied/month at a not to 29 exceed from $30 to as. high as $100. Flat rate pricing for second tier purchases for the term 30 February 2023 to March 2024 was $61.89/MWh LLH and $91.05/MWh for HLH.  23 24  The Plant update included information on future gas contracts through BP/PEAK.  31 32  IPP Call Back is scheduled for 8 MW's Summer 2023, 8 MW's Winter 2023-24, and  33 14 MW's Summer 2024. This will be dependent on the ability to get coal. Other options for 34 future power include 15 MWi in natural gas in a bigger plant; Solar with batteries (Nextarea 35 10 MW's with 5 MW batteries at an average cost of $69 - for both). Subscription for the 36 Carbon Free Project is still an issue; we. have signed a nondisclosure agreement for this  37 project with the current off ramp through February 2023.  38 39  Mr. Johnson reviewed a summary ofresource pressures (coal availability, major  40 problems with the UAMPS Nebo plant, and natural gas pricing running extremely high. 41 Future power purchases will need to be finalized for the period October 2023 - June 2024. 42 He also noted that the estimated budget will require a 10 percent rate increase and discussion  43 focused on how this should be implemented.  44  Page 3 of4    (PC, minutes January 24, 2023)  1 4 6 8 9 10 11 12 14 15 17 18 8:00a.m. 19 20 ADJOURN 21 24 25 26  Chairman Summers commented that these are very challenging times and he  2 expressed appreciation tol Mr. Johnson for his exceptional diligence inj pursuing optimal 3 options and solutions for the residents of Bountiful as it pertains to their electrical service. 5 Thej following items were included. in the packet, but not discussed in the meeting:  7 POWER SYSTEMS OPERATIONS REPORT  a. October-November: 2022 Resource Reports b. December 2022 Lost Time/Safety Reports C. December 2022 Public Relation Reports d. November 2022 Outage Reports  13 OTHER BUSINESS  None  16 NEXT POWER COMMISSION  The next meeting oft the Power Commission willl bel held on February 21, 2023 at  The meeting adjourned at 9:50: a.m. on ai motion by Commissioner Pitcher and  22 seconded by Commissioner Bell. Voting was unanimous with Commissioners Becker, Bell,  23 Irvine, Pitcher, and Summers and Councilman Higginson voting "aye".  Paul  CPRM  C. Summers, CHAIRMAN  Page 4 of4