I 2 3 4 5 6  MINUTES OF THE MEETING OF THE THE BOUNTIFUL CITY POWER COMMISSION October 25, 2022-8 8:00 a.m. Those in Attendance  7 Power Commission 8 Paul C. Summers, Chairman 9 Susan Becker 10 Dan Bell  Power Department Allen Johnson, Director Alan Farnes David Farnes Tyrone Hansen Jess Pearce Luke Veigel Recording Secretary Nancy T. Lawrence  11 Richard Higginson, CC Rep (via Zoom) 12 David Irvine (via Zoom) 13 John Marc Knight (via Zoom) 14 Jed Pitcher 15 16 Visitor 18 19 WELCOME 20 22 24  17 Gary L Davis, Bountiful CERT  Chairman Summers called the Power Commission meeting to order at 8:00 a.m. and  21 welcomed those in attendance. Theinvocation was offered by Commissioner Becker.  23 MINUTES.June 28,2022  Minutes of the regular meeting of the Bountiful Power Commission held September  25 27,2022, were presented, and unanimously approved as corrected on ai motion made by 26 Commissioner Pitcher and seconded by Councilman Higginson. Commissioners Becker, 27 Bell, Irvine, Knight, Pitcher and Summers and Councilman Higginson voted "aye" 29 BUDGET REPORT-YFARTODATE 2-MONTH PERIOD ENDNG31 AUGUST 32 Month period ended 31 August 2022. Total Revenues YTD were $6,552,759, above its 33 HAB by $315,458. Major items above budget were: Electric Metered Sales, above its HAB 34 by 3.4% - $193,038; Air Products, with an average load factor of 74.8% - above its HAB 35 by $46,738; Interest Income on Investments was above its HAB by $8,2555--the. August  28 30 2022 31  Mr. Hansen presented a summarized Budget Report fort the Fiscal Year-to-date 2-  36 allocation was $36,000.  37 38  Total operating expenses YTD were $5,779,665, above its HAB by $(542,161).  39 Major items (above) their HABS were: Power Costs, (above) their HABs by $(691,587), 40 which included natural gas and plant repair costs; Insurance Expense was (above) budget by 41 $(45,531); and the transfer to the General Fund was (above) budget by $(19,098) due to 42 higher EMS. In response to a question regarding the overage ofl Insurance Expense, it was 43 noted that the City is self-insured (property, vehicle, and casualty) and the annual premium 44 varies. Major Operating Expenses below thc HABs included Distribution Expense-- 45 $47,566; Street Light Expense-s13,712; Transformers Expense--$52,577.  46  Page 1 of4    (PCI minutes October 25, 2022)  1 3 4 7 8 10 11  Total Capital Expenditures were $81,255 and included: $14,000 for Creekside Total Labor & Benefits YTD expenses was $636,994. As of20 August 2022, 14%  2 Views Cul-de-sac, $33,000: for Feeder 574, and $33,000 for the Renaissance MRI. 5 or$ $750,362 oft the total Labor and Benelits Expense budget could have spent; the actual  6 TL&B was $113,369 below that target.  The Net Margin for the YTD was $691,840, as on-budget revenues plus many low Total Cash and cash equivalents were ai net $19,489,358 at month end, down  9 operating expenses were partially offset by high power costs.  12 $905,556 from $20,394,914 at 30. June 2022 and $4,381,358 above the $15,108,000 total 13 reserved cash requirement. Commissioner Pitcher asked ifthe revenues included the rate 14 increase and Mr. Hansen confirmed "yes"-3%. A briefdiscussion followed regarding 15 whether ai mid-year increase will be necessary and Mr. Johnson said the City Manager 16 would prefer to not assess ai mid-year increase if possible. Councilman Higginson made a 17 motion to accepl the Budgel Report, as presented. Commissioner Becker seconded the 18 motion and voting was unanimous in the affirmative. Commissioners Becker, Bell, Irvine, 19 Knight, Pitcher and Summers, and Councilman Higginson voted "aye".  20 22  21 TRANSFORMER PURCHASE APPROVAL  Mr. Pearce explained that we are trying to stay ahead on our transformer inventory,  23 with lead times as long as four (4). years out. Invitations to bid were sent to two vendors; 24 only one responded. Itist the recommendation oft the Department to approve the bid from 25 Anixter Power Solutions for 24 (ea.). 37.5 Kva 1-phase O.H. transformers and 24 (ea.) 50 26 Kva 1-phase O.H. transformers (with a delivery time of26-30 weeks) for a total cost of 27 $129,264.00. He said this price is in the same price range as the last transformer purchase 28 that was made. Commissioner Bell made a motion to accept the staff recommendation and 29 Commissioner Pitcher seconded the motion. Voting was unanimous with Commissioners 30 Becker, Bell, Irvine, Knight, Pitcher and Summers and Councilman Higginson voting "aye".  31 33  32 223TENTATIVECALENDAR APPROVAL  Mr. Johnson presented the Tentative Schedule for 2023 Power Commission  34 meetings, noting that it follows the typical fourth Tuesday for normal meetings. He pointed 35 out known budget meeting schedules, no regular meetings in July and December, June 36 APPA meetings, Thanksgiving, IPA, and the UAMPS annual meetings.  37 38 39 40 41 42 43 44 45 46 47  January 24, 2023 February 21,2023 March 28, 2023 April 25, 2023 May 23,2023  Tuesday - 8:00 a.m. Tuesday - 8:00 a.m. Tuesday - 8:00 a.m. Tuesday - 8:00 a.m.  Tuesday - 8:00 a.m. Joint PC & CC - Budget  (This meeting might needt to be re-scheduled. to conform with the CC budget meeting schedules).  APPA National Conference June 17-21 Seattle, WA  June 27,2023  Tuesday - 8:00 a.m. Page 2 of4    (PC minutes October 25, 2022)  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15  July 2023  No PC: Meeting Schedulcd  UAMPS Annual Meeting Aug 13-16, 2023. Jackson, WY  August 22, 2023 September 26, 2023 October 24, 2023 November 21, 2023  Tuesday - 8:00 a.m. Tuesday - 8:00 a.m. Tuesday - 8:00 a.m. Tuesday = 8:00 a.m.  December 5, 2023 IPA Annual Meeting December 19, 2023 UAMPS Annual Meeting  December 2023  No PC meeting scheduled  Ini response to a question from Commissioner Becker, Mr. Johnson explained that the  16 IPAa and UAMPS Annual Meetings were for the purpose of reporting (not training). 17 Commissioner Pitcher made a motion to accept the 2023 Tentative Calendar, as presented. 18 Commissioner Becker seconded the motion with carried unanimously. Commissioners 19 Becker, Bell, Irvine, Knight, Pitcher and Summers, and Councilman Higginson voted "aye".  20 22 25 26  21 RESOURCE UPDATE  Mr. Johnson reported that CRSP continues with the reduced power output - stilli in  23 the neighborhood of 50% chance of going into dead pool with at total restriction on 24 generating anything. We will be in the 40%1 range of what we have been getting. 27 Steel project (5.91 MW) has filed an additional force majeure due to supply issues and it 28 could be until January 2024 before that is available. San Juan completely shut down on 29 September 28, 2022 and the Enchant project appears to no longer be a viable resource. 30 Farmington, New Mexico has filed a lawsuit naming UAMPS for breach of contract. 33 high cost ofinsurance required for the project. We have quit looking at this one. IPP 34 repowering is still scheduled to be online June 2025, and it is anticipated that it will be able 35 to run 30% hydrogen. Coal delivery is still a big issue with IPP- due to transportation 36 issues and the Lila Mine fire which is still burning. Enchant is talking to IPP about buying 37 the coal plant. They have been talking to the State Legislatures to try and make some 38 progress. Many issues stand in their way, including cooling ponds and BOR regulations and 39 air quality. We are working onj purchasing additional power through March 2024. (This will  Red Mesa solar (5.8 MW) is scheduled to start supplying power in February. The  31 32  Muddy Creek (the waste heat project from Kern River) has been canceled due to the  40 be down in February rather than summer).  41 42 45  Mr. Johnson said that he and Councilman Higginson and the City Manager went to  43 Corvallis to tour the NuScale Carbon Free Power Plant on October1 11-12, 2022. 44 Subscription is still an issue, but we have signed a nondisclosure agreement for the project.  Page 3 of4    (PC minutes October. 25, 2022)  1  It has been determined that there is a bad seal on one of the engines at the Power  2 Plant. Solar has offered to replace the two Titan engines (with the assumption that ifone 3 has al known problem, it is possible that it is ai manufacturing error and might affect both 4 engines). Solar wants to study our engines to determine why there is aj premature failure. 5 Hei reviewed the normal life oft these engines and the deviation which appears with the seal 6 failure. The normal cost to replace one engine is $3,794,889. Solar has offered to replace 7 Unit #2 for $962,900; and Unit #3 for $1,000,427. They would do this project in February 8 which would be good timing for our other resources. Tollowing discussion, Commissioner 9 Knight made ai motion to accept this proposal from Solar at at total cost of$1,963,327. 10 Councilman Higginson seconded the motion which carried unanimously. Commissioners 11 Becker, Bell, Irvine, Knight, Pitcher and Summers and Councilman Higginson voted "aye". 13 Thefollowing items were included ini the packet, but not discussed in the meeting:  12 14 16 17 18 19 20 22 25 26  15 POWER SYSTEMS OPERATIONS REPORT  a. August 2022 Resource Reports b.A August 2022 Lost" Time/Safety Reports C. August 2022 Public Relation Reports d. August 2022 Outage Reports  21 OTHER BUSINESS  There was a brief discussion regarding a rate increase. Mr. Johnson said that he  23 would prefer to get the last piece of power resources in place, as well asl known maintenance 24 expenses and anticipated weather trends before taking action on ai rate increase.  Mr. Johnson reminded the group oft the UAMPS Annual meeting on December 20  27 (dinner) and December 21 (meeting); the IPA Annual Meeting on December 6, 2022; and 28 the Department Christmas Party on December 15, 2022, to bel held at the former 29 "Canterbury Hall" on 500 South. Invitations to the Department party will be mailed to all  30 Commissioners.  31 33 34 8:00 a.m. 35 36 ADJOURN 37 40 41 42 43 44  32 NEXT POWER COMMISSION  The next meeting of the Power Commission will be held on November: 22, 2022, at  The meeting adjourned at 9:25 a.m. on a motion by Commissioner Pitcher and  38 seconded by Commissioner Becker. Voting was unanimous with Commissioners Becker, 39 Bell, Irvine, Knight, Pitcher, and Summers and Councilman Higginson voting "aye".  Summers, CHAIRMAN  C  Page 4 of4