I 2 3 4 5 6  MINUTES OF THE REGULAR MEETING OF THE THE BOUNTIFUL CITY POWER COMMISSION  February 22,2022-8:00 a.m. Those in Attendance  7 Power Commission 8 Paul Summers, Chairman 9 Susan Becker* 10 Dan Bell 12 David Irvine 13 John Marc Knight* 14 15 Excused 17 19 20 WELCOME 21 24 26  Power Department Allen Johnson, Director Jay Christensen Alan Farnes David Farnes Jess Pearce Luke Veigel Recording Secretary Nancy Lawrence  11 Richard Higginson, City Council Rep.  16 Jed Pitcher, Commissioner  18 *Attended via Zoom Meetingl ID No. 819-3420-3453; Password 054209  Chairman Summers called the meeting to order at 8:00 a.m. and welcomed those in  22 attendance. He acknowledged that the meeting was being broadcast via Zoom, Meeting ID: 23 8193420 3453; Passcode: 054209. Mr. Christensen offered the invocation.  25 MINUTES -JANUARY25.2022  Minutes of the regular meeting of the Bountiful Power Commission held January 25,  27 2022, were presented, and unanimously approved as amended on a motion made by 28 Councilman Higginson and seconded by Commissioner Irvine. Commissioners Becker, 29 Bell, Irvine, Knight and Summers, and Councilman Higginson voted "aye". 31 BUDGET REPORT-) YEAR-TO-DATE 6-MONTH PERIOD ENDNG31  30 33 35  32 DECEMBER 2021  Mr. Christensen presented the Budget Report for the Fiscal Year-to-date 6-Month Total Revenues YTD were $15,237,963, above its historically allocated budget  34 period ended 31 December 2021, noting that it is final.  36 (HAB) by $27,173. Major items above their HABs were: Electric Metered Sales, above by 37 $78,273 or 0.6%; Air Products income above by $21,466 with an average load factor of 38 60.3% for the YTD period compared to 56.9% for this time last year; and Sundry Revenues, 39 above by $15,851, due in part to the collection of $10,006 of various system damage billings 40 in November. He credited Dave Farnes for his efforts in following up on this process. 41 Interest income on investments was below its HAB by $(28,792) as the YTD interest yield  42 of0.88% was lower than the 1.0% budgeted.  43 44  Total Operating Expenses YTD were $13,385,897, above its HAB by $(167,567)  45 due to the following major items: power cost expense, above its HAB by $(590,078) with 46 strong Electric Metered Sales, high market prices over peak, and the drought and its effect  Page 1of4    (PC minutes February. 22, 2022)  on power from CRSP (and he noted that it is anticipated that it will be another $400,000 2 over budget in January). Transformers Expense was above its HAB by $(15,409) due to 3 high market prices and an effort to replenish inventory for future: needs. Meters Expense 4 was below its HAB by $52,750, and the other expense accounts were better than budgeted.  5 6 7 last report. 8 9  Total Capital Expenditures YTD were $415,640, with not much change from the TotalLabor and Benefits Expense YTD (included in Operating Expenses YTD  10 and Capital Expenditures listed above) was $2,324,221. As of25 December 2021 (the last 11 pay period paid in the YTD period), 48.8% or $2,580,412 of the TL&B budget could have 12 been spent; the actual TL&B was $256,191 below that target. (Mr. Christensen noted that 13 there was an error on this item in the previous report and he clarified the correction). 16 EMS estimate) and many low operating expenses were partially offset by high power costs. 17 He noted that this margin will be much less on the next report due to continued higher power  14 15  The Net Margin YTD was $1,436,426, as higher EMS (including the conservative  18 costs and large expense payments that will be made.  19 20  Total cash and cash equivalents were ai net $21,240,287 at month end, up  21 $1,432,908 from $19,807,379 on 30. June 2021, and $4,098,287 above the $17,142,000 total 22 reserved cash requirement. He noted a decrease of $292,357 ini total accounts receivables as 23 asignificant source of cash and an increase of $(265,136) in total inventories as ai major use 26 supply chain, Commissioner Bell motioned to accept the Budget Report, Councilman 27 Higginson seconded the motion and voting was unanimous. Commissioners Becker, Bell, 28 Irvine, Knight, and Summers, and Councilman Higginson voted' "aye".  24 ofcash. 25  Following a brief discussion oft the budget report and budgetary issues related to the  29 31  30 TRANSFORMER BIDA APPROVAL  Mr. Pearce reported that the availability oft transformers continues to be a challenge  32 for the City, to the point that suppliers are not even taking orders. He explained that, 33 through the diligent oversight oft the purchasing agent (Jim Hadlow), BL&P had an option to 34 get onto an emergency order with Anixter for thirty (30) 50 KVA transformers. These 35 transformers will be used to replace damaged or leaking transformers on the system and 36 future construction projects throughout the City. Thirty (30) of the 501 KVA transformers 37 were purchased at at total bid price of$106,650. (A similar purchase was made in March 38 2021 and the cost of the transformers was 40% lower - evidence oft the dramatic changes in 39 today's supply chain. The purchase in 2021 had an 18-week delivery date; the order we are 40 currently placing will not be delivered until November 2022. Itis the staff recommendation 41 that this purchase be approved. Councilman Higginson made ai motion to approve the staff 42 recommendation. Commissioner Irvine seconded the motion and voting was unanimous. 43 Commissioners Becker, Bell, Irvine, Knight, and Summers, and Councilman Higginson  44 voted' "aye". 45  Discussion followed regarding the potential increase in demand on our system as  46 customers switch to electric-powered vehicles.  Page 2 of4    (PC minutes February. 22, 2022)  2 COVIDI UPDATE  3  Mr. Pearce reported that we have not had any issues related to COVID since the last  4 meeting - other than supply chain. Thel Department is well stocked with commodities 5 needed (masks, sanitizers, etc.) should conditions worsen. He noted that we will be 6 following the lead that the Governor has set in moving to a "steady state" position -1 testing 7 sites will close, and the healthcare system in the State is refocusing on disease surveillance,  8 data collection and reporting, vaccinations, and public awareness.  9 11  10 ENCHANT POWER SALES AGREEMENT  Mr. Johnson noted that it was anticipated that an Enchant Power Sales Agreement  12 would be ready for consideration at this meeting, buti it is not ready. The project is still 13 moving forward, the San Juan project will continue to operate through September, and iti is 14 anticipated that the Enchant project (carbon capture project at San Juan) will start running  15 October1 1, 2022. 17 RESOURCE UPDATE  16 18  Mr. Johnson reported that in addition to CRSP resources being restricted and more  19 expensive, another major blow by the restriction ofthis resource is the loss of ability to 20 schedule power and very little patterning ability compared to what we have had in the past. 21 Hei reported that we received 48 percent of the anticipated power for December and January 22 and will be receiving approximately 60j percent of our budgeted power for February and 23 March. These are the months when CRSP has been our basic firm resource in the past. He 24 suggested that Lake Powell will not recover for at least two years. He did note that Echo 25 and Pineview (smaller reservoirs) can could come back sooner and provide 100 percent of  26 what is budgeted.  27 28  The Red Mesa solar project will be delayed due to solar panels not being available -  29 a Covid supply chain issue. Itis anticipated that commercial operation will not begin until 30 November or December 2022. The STEEL project should be on line in December of 2022 31 also. Gaps in our resources will be covered by the plant. He noted that gas is most 32 expensive in the winter. One oft the factors ini the cost of gas is the transportation (by 33 Dominion Energy) and the amount they will wheel for us is limited. IPP has been called 34 back and we will need tol know by June how much we will need for next year.  35 36  Mr. Johnson then reported that the San Juan project is scheduled to shut down in  37 October 2022. The Enchant project is still a coal-fired project, taking San Juan resource 38 using a grant from the Federal Government to do carbon capture. Itisa anticipated that a 39 contract with Enchant will be approved by UAMPS in April and the City will need to act 40 after the UAMPS meeting. Approval oft the carbon capture project has been delayed until  41 2025. 42 43 45  UAMPS is still working on the Muddy Creek project (reclaiming power from the IPP repowering is still scheduled to be online June 2025, anticipated to be able to run  44 Kern River pipeline), but it is not moving very quickly.  46 30%1 hydrogen.  Page 3of4    (PC minutes February. 22, 2022)  1 2 4 6 8 9 10 11 12 14  Mr. Johnson reviewed State legislation currently being considered, and the posture of  3 neighboring states that are involved with the IPP project and al brief discussion followed. 5 Thefollowing items were included in the packet, but not discussed in the meeting:  7 POWER SYSTEMS OPERATIONS REPORT  a. December 2021 Resource Reports b. January 2022 Lost' Time/Safety Reports C.. January 2022 Public Relation Reports d. December 2-21 Outage Reports  13 OTHER BUSINESS  Mr. Johnson reminded the group oft the upcoming APPA Conference in Nashville in  15 June and that it is time to make reservations for those wishing to attend. He requested that 16 anyone wishing to go, please let him know. Commissioners Bell and Summers and 17 Councilman Higginson all expressed a desire to attend. Commissioner Knight said he will  18 get back with Mr. Johnson later. 20 NEXT POWER COMMISSION  19 21 22 a.m. 23 24 ADJOURN 25 28 29 30 31  The next meeting ofthe Power Commission will be held on March 22, 2022, at 8:00  The meeting adjourned at 9:14 a.m. on a motion by Commissioner Irvine and  26 seconded by Councilman Higginson. Voting was unanimous with Commissioners Becker, 27 Bell, Irvine, Knight, and Summers, and Councilman Higginson.voting" "aye".  Paul Summers, CHAIRMAN   Page 4 of4