MINUTES OF THE MEETING OF THE THE BOUNTIFUL CITY POWER COMMISSION  2 3 4 5 6  June 28, 2022-8 8:00 a.m. Those in Attendance  7 Power Commission 8 Paul C. Summers, Chairman 9 Susan Becker 10 Richard Higginson, City Council Rep 11 David Irvine (via Zoom) 12 John Marc Knight 13 14 Excused 15 Dan Bell, Commissioner 16 Jed Pitcher, Commissioner 17 Tyrone Hansen 18 19 WELCOME 20  Power Department Allen Johnson, Director Alan Farnes (via Zoom) Jess Pearce Recording Secretary Nancy T. Lawrence  Chairman Summers called the Power Commission meeting to order at 8:00 a.m. and  21 welcomed those in attendance. He noted that Alan Farnes and David Irvine are joining the 22 meeting via Zoom, Meeting ID No. 873-6844-8722. He excused Commissioners Dan Bell 23 and Jed Pitcher, and Tyrone Hansen, Power Department staff. The invocation was offered  24 by Councilman Higginson. 26 MINUTES, May 24,2022  25 27  Minutes of the regular meeting oft the Bountiful Power Commission held May 24,  28 2022, were presented, and unanimously approved as written on a motion made by 29 Commissioner Becker and seconded by Councilman Higginson. Commissioners Becker, 30 Irvine, Knight, Summers, and Councilman Higginson voted "aye". 32 BUDGET REPORT - YEAR-TO-DATE -MONTH PERIOD ENDNG 30APRIL2022 34 Month period ended 30. April 2022, noting that it is final. Total Revenues YTD were 35 $23,770,024.00, below its HAB by $(23,687). He noted that the end-of-year picture looks 36 quite bleak -May' s power bill will be over $1 million, and June will most likely be higher 37 than budgeted. The budget has already been opened (per approval at public hearing) to 38 cover the higher power costs for the current year. Some Capital Expenditures have been 39 delayed offsetting those costs as an added measure to meet budget; however necessary 40 projects have been completed. Delivery oft transformers which were scheduled for delivery 41 in the current year budget have been cancelled by the manufacturer. The projected delivery 42 date is April 2023. In response to a question from Commissioner Becker, Mr. Johnson said 43 that the 3 percent rate increase approved for the FY: 2022-23 budget will be in effect for. July 44 and will show up in August 2022. Total additional revenue from the rate increase will be  31 33  Mr.. Johnson presented a summarized Budget Report for the Fiscal Year-to-date 10-  45 $600,000 for the calendar year. Power costs remain volatile.  46  Page 1 of4    (PC minutes June 28, 2022)  Total Operating Expenses year-to-date were $21,471,744; and Total Capital  2 Expenses year-to-date were $1,062,070, leaving a Net Margin YTDofS1,236,210. Total 3 Cash and Cash Equivalents were a net $20,862,630 at month end. After further discussion, 4 Commissioner Knight motioned to accept the Budget Report. Councilman Higginson 5 scconded thc motion and voting was unanimous. Commissioners Becker, Irvine, Knight and  Summers, and Councilman Higginson voted "aye".  7 9  8 TRANSFORMER PURCHASE  Mr. Pearce reviewed that transformers continue to be hard to purchase and their lead  10 times are a factor in keeping an adequate inventory. The transformer that is being requested 11 ist to be used for an addition to the system in the spring and is being ordered now to adjust 12 fori industry uncertainties on delivery. Two vendors were asked for bids, and it is the staff 13 recommendation to accept the low bid from IRBY-ABB for one 750 Kva three-phase pad  14 mounted transformer at a cost of$ $26,500, delivery of12-14 weeks.  15 16  Discussion followed on the current transformer inventory and replacement practices.  17 Mr. Pearce noted that as long as acquisition of new transformers is unreliable, transformers 18 currently in use are not being changed out unless they have failed. The average life ofa 19 transformer is 20-25 years. Councilman Higginson made a motion to recommend approval 20 ofthis purchase to the City Council, as recommended. Commissioner Becker seconded the 21 motion and voting was unanimous. Commissioners Becker, Irvine, Knight, and Summers,  22 and Councilman Higginson voted "aye". 24 WOOD POLE PURCHASE  23 25.  Mr. Pearce explained that it has been difficult to get poles to replace the ones that are  26 being installed by our crews on a daily basis. We purchase butt-treated poles (not fully 27 treated) because most of our poles are located in the back yards and have tol be climbed. 28 Treated poles become extremely hard after a couple of years and it is very difficult to climb 29 them; therefore, using thel butt-treated-only pole gives the advantage of protection to the  30 pole being in the ground but provides an easier climb for the linemen.  31 32  "Stella", the sole source for butt-treated poles, has indicated that they are again able  33 to supply poles and we would like to order 24 35-foot poles and 44 45-foot poles, for a total 34 of6 64 poles, to bring our inventory back up before winter and the start of the east wind 35 season. The total toj purchase these poles is $57,528.00, with an October delivery date. 36 Following al briefdiscussion, Commissioner Knight made ai motion to recommend approval 37 ofthis purchase to the City Council, as presented. Councilman Higginson seconded the 38 motion which carried unanimously. Commissioners Becker, Irvine, Knight, and Summers,  39 and Councilman Higginson voted "aye". 41 SOLAR REPAIR PARTS  40 42  Alan Farnes reviewed that we have developed a problem with both of our two Titan  43 generation units at the Power Plant. The guide vain actuators and the main gas valve for 44 both units have stopped working. He said that both of the units have similar hours, and iti is 45: not uncommon to see equipment failures close together. We need both of these units for the  46 24 Mw'sofcapacity to meet the anticipated summer load.  Page 2 of4    (PC minutes. June 28, 2022)  2  Solar had the parts in stock and was able to ship them out overnight. The total cost  3 for the parts is $76,260.01, plus $500 shipping. The replacement of these units (available 4 only from the factory) will allow us to bring the generation units back in operating 5 condition. There were no additional labor charges as the work was done in-house. The staff 6 recommends approval oft this purchase. Commissioner Becker motioned to approve this 7 purchase, as recommended. Councilman Higginson seconded the motion and voting was 8 unanimous. Commissioners Becker, Irvine, Knight, and Summers, and Councilman  9 Higginson voted "aye". 11 RESOURCEUPDATE  10 12  Mr.. Johnson reviewed issues related to the supply chain (e.g., the U.S. requiring  13 China to prove that forced labor is not being used on products that are imported), and the 14 impact that this is having on contracts. Hence, contractors are being forced to cancel 15 contracts, rather than pay the penalty for the delay. He noted that the Power department has 16 been working to secure a utility size solar power project for several years and in November 17 2020, we were able to secure a 25-year power purchase agreement with Steel Solar, LLC 18 (located in Box Elder County). Transmission rights for this project have been secured; 19 however, the timing of the contract has been delayed due to supply chain issues with China. 22 #2022-11 to approve the UAMPS AMENDED Steel Power Supply Agreement, the 23 Amended and Restated Transaction Agreement and to authorize the mayor to sign the 24 resolution and the Firm Power Supply Agreement. The major changes to the original 25 resolution is the (1)revised term ofthe power purchase agreement (anticipated to be 26 September 30, 2023, but no later than March 31, 2024); and (2) the purchase price for the 27 project has gone from $31.35/per megawatt hour (MWH) to $34.66/per megawatt hour for 28 the 25 years. This pricing included all oft the renewable energy credits.  20 21  It is the recommendation ofs staff that the Power Commission approve Resolution  29 30  In response to a question from Commissioner Becker, Mr. Johnson stated that he  31 feels this is a firm project which has a 90 percent chance of going through. We have 32 requested. 6.4 MW. Commissioner Knight made a motion to support the staff 33 recommendation and recommend to the City Council approval of] Resolution #2022-11to 34 approve the UAMPS Amended Steel Power Supply Agreement, the Amended and Restated 35 Transaction Agreement, and to authorize the mayor to sign said documents. Commissioner 36 Irvine seconded the motion and voting was unanimous with Commissioners Becker, Irvine,  37 Knight and Summers, and Councilman Higginson voting "aye".  38 39  Negotiations on reclamation and decommissioning fee is continuing for the Enchant  40 project (currently San Juan). FERC has approved the San Juan extension until September. 41 The estimate to restore to grade is $130 million, with BCLP share being $357,000. In the 42 meantime, the unit is being curtailed due to coal inventory. Enchant will be ready to go 43 online in October, creating ai resource gap for about a month. The carbon capture phase of  44 Enchant is anticipated to be implemented by 2025.  45  Page 3 of4    (PC minutes. June 28, 2022)  The Red Mesa Solar project will be delayed which will result in an increase in costs  2 -UAMPS is in contract discussions regarding costs. Oncc thc costs havc bccn cstablished, 3 we will need to get them approved through the City Council. Itis hoped that this project 4 will still be completed, but it is not as solid as is the Steel solar project.  5 6  As was discussed earlier, the Steel project will be delayed until approximately March  7 2024 due to lack ofavailability ofs solar panels. The Muddy Creek project is still working 8 on an agreement with Kern River; and the FERVO geothermal project is still active. The 9 IPP repowering is still scheduled to be online by June 2025 and iti is anticipated that it will 10 be able to run 30% hydrogen. IPP is operating only one unit this summer due to coal 11 availability. We anticipate a call back from IPP for winter 2022-23. Availability ofCRSP 14 Thefollowing items were included in the packet, but not discussed in the meeting:  12 is questionable due to the lack of water this year.  13 15 17 18 19 20 21 23 26 28 29 a.m. 30 31 ADJOURN 32 35 36 37 38  16 POWER SYSTEMSOPERATIONS REPORT  a. April 2022 Resource Reports b. May 2022 Lost Time/Safety Reports c. May 2022 Public Relation Reports d. April 2022 Outage Reports  22 OTHER BUSINESS  Mr. Johnson reminded the group of the. Annual UAMPS meeting to be held in  24 Logan, August 14-15, and encouraged anyone interested in attending to complete the  25 registration handout and return the forms to him. 27 NEXT POWER COMMISSION  The next meeting of the Power Commission will be held on August 23, 2022, at 8:00  Thc mccting adjourned at 9:16a.m. on a motion by Commissioncr Becker and  33 seconded by Councilman Higginson. Voting was unanimous with Commissioners Becker,  34 Irvine, Knight, and Summers, and Councilman Higginson voting "aye".  Paul C. Summers, CHAIRMAN CPtE  Page 4 of4