1 2 3 4 5 6  MINUTES OF THE REGULAR MEETING OF THE THE BOUNTIFUL CITY POWER COMMISSION  October. 26, 2021 -8 8:00 a.m. Those in Attendance  7 Power Commission 8 Paul Summers, Acting Chairman 9 Susan Becker 10 Dan Bell 11 Richard Higginson, City Council Rep. 12 David Irvine 13 14 Excused 15 Jed Pitcher, Chairman 16 John Marc Knight 17 18 WELCOME 19 21 23  Power Department Allen. Johnson, Director Jay Christensen Alan Farnes David Farnes Jess Pearce Luke Veigel Recording Secretary Nancy Lawrence  Acting Chairman Summers called the meeting to order at 8:00 a.m. and welcomed  20 those in attendance. Commissioner Bell offered the invocation.  22 MINUTES- SEPTEMBER 28,2021  Minutes oft the regular meeting ofthe Bountiful Power Commission held September  24 28, 2021, were presented, and unanimously approved as written on ai motion made by 25 Councilman Higginson and seconded by Commissioner Bell. Commissioners Becker, Bell,  26 Irvine, and Summers, and Councilman Higginson voted "aye." 28 Note: The sequence of items on the Agenda was adjusted.  27 29 31  30 COVID UPDATE  Mr. Pearce reported that we have not had any new cases ofCovid. The greatest  32 concern related to Covid is the supply chain. He gave as an example that if we were to order 33 pad mount transformers, they are: not available for over a year, and ini many cases, new 34 orders are: not being accepted. This problem is the result of a shortage of materials and help. 35 Mr. Johnson said that we are in the process of ordering 90 transformers, but we do not know 36 what the prices will be. In the past, pole orders could be received within two weeks; poles  37 are now taking months for delivery.  38 40  39 ECHOTHRUST BEARING MODIRICATION  Alan Farnes reported that since the Echo turbine wheels were replaced last winter,  41 they are all running, just at orj just below the high temperature alarm point. Efforts to correct 42 this problem have not been successful. After further study, we found that Logan City had a 43 similar problem with their Renk thrust bearings and they hired Integrated Power Services to 44 remanufacture the bearings for one oft their turbines using a new polymer material (hat can 45 operate at al higher tempcraturc. This was a very successful move on the part ofI Logan.  Page 1 of6    (PC minutes October 26, 2021)  1 2 3 4 5 6 7 8  Itis the recommendation ofs stafft that BCL&P approve a quote from Integrated Power Services to remanufacture three thrust bearings for the three Echo turbines for $261,868.00. The work can be completed in 6- 8 weeks and will beara 24-month warranty on materials and workmanship. Commissioner Becker asked if we had worked with Integrated Power Services before and Mr. Farnes, said "no," but Commissioner Becker then made a motion to recommend to the City Council that  Logan had a very good experience with this company.  9 approval be given to the quote from Integrated Power Services in the amount of $261,868 10 fori remanufacture ofthe three thrust bearings for the Echo turbines. Councilman Higginson 11 seconded the motion and voting was unanimous with Commissioners Becker, Bell, Irvine, 14 BUDGET REPORT - YEAR-TO-DATE 2-MONTH PERIOD ENDNG AUGUST31, 17 Month period ended 31 August 2021, noting that it is final. He reviewed the process which 18 ist used to determine the $600,000 estimate for Electric Metered Sales and noted that iti is 19 conservative. He also explained that there is ai time delay oftwo months for each budget 20 report due to EMS revenues and UAMPS power costs are not available until the 2/st and 25th 21 ofthe following month, respectively, thus missing a Power Commission meeting. 24 Atf fiscal year-end 2021, a preliminary $500,402 was recorded in Accounts Receivable- 25 Grants, Permils, & Misc. on the balance sheel to recognize the approximate amount that 26 could be reimbursed from the Federal Emergency Management Agency (FEMA). This  12 Summers, and Councilman Higginson voting "aye."  13 15 2021 16  Mr. Christensen presented the Budget Report for the Fiscal Year-to-date (YTD) 2-  22 23  BCLP has $677,362 of costs identified for the 08 September 2020 high wind event.  27 reimbursement is still under review and subject to adjustment.  28 29  Total Revenues YTD were $6,308,455, above its historically allocated budget  30 (HAB) by $201,682. Major items included: Electric Metered Sales, above its HAB by 31 $196,221 or 3.5%; Air Products, above its HAB by $25,206 with an average load factor of 32 68.3% (up from 53.8% for this time last year); and Contribution in Aid to Construction,  33 below its HAB by $(46,173) with no work done YTD.  34 35 38 39 41 42  Total Operating Expenses YTD were $5,343,061, above its HAB by $(367,082).  36 The primary factor was power cost expense, which was above its HAB by $(385,723) with  37 strong EMS and high market prices. 40 share ofthe City'si ncw car wash facilitics.  Total Capital Expenditures YTD were $92,788, including $90,281 for BCLP's Total Labor and Benefits Expense YTD (included in Operating Expenses YTD and  43 Capital Expenditures listed above) was $677,735. As of21 August 2021 (the last pay period 44 paid in the YTD period), 13.2% or $695,841 ofthe TL&B budget could have been spent; the  45 actual TL&B was $18,106 below that target.  Page 2 of6    (PC minutes October. 26, 2021)  The Net Margin YTD was $872,607 at month end with high EMS (including the Total Cash and Cash Equivalents were ai net $20,482,604 at month end, up  2 $600,000 estimate), partially offset by high power costs.  3 4 7 8 11 13  5 $675,225 from $19,807,379 on 30 June 2021. Mr. Johnson noted that we are approximately 6 $31 million dollars above the required restricted cash balance of$17,142,000. 9 Report, Commissioner Irvine seconded the motion and voting was unanimous. 10 Commissioners Becker, Bell, Irvine, and Summers, and Councilman Higginson voted "aye." 12 ONEUTAHMUTUAL, ASSISTANCE AGREEMENT APPROVAL  Following a brief discussion, Commissioner Bell motioned to accept the Budget  Mr. Johnson reported that the draft Mutual Assistance Agreement between  14 PacifiCorp, the Municipalities, and the REA's was approved by the Power Commission on 15 September 28, 2021 and the Mayor was a part of the signing ceremony at the Utah State 16 Capitol on October 7, 2021. However, there were several changes that were made to the 17 agreement that we wanted to make sure were approved by the Council before the Mayor 18 signs the final agreement. He reviewed those major changes and reported that the finalized 19 Agreement has been reviewed by staff, the City Manager, and the City Attorney and it is the 20 staffrecommendation that the Power Commission recommend approval of] Resolution 2021- 21 191 to adopt the One Utah Mutual Assistance Agreement and authorize the Mayor to sign it 22 on behalfof] Bountiful City. He noted that many oft the UAMPS members are not  23 participating in the Agreement.  24 25  Commissioner Irvine made a motion to recommend re-approval of the Mutual  26 Assistance Agreement to the City Council. Councilman Higginson seconded the motion, 27 noting that anything that can be done to maintain better relationships with the entities ini this 28 Agreement is valuable. Voting was unanimous with Commissioners Becker, Bell, Irvine,  29 and Summers, and Councilman Higginson voting "aye." 31 RESOURCE SOLAR RATE UPDATBAPPROVAL  30 32  Mr. Johnson reported that San Juan is still scheduled to be shut down June 2022. The  33 Enchant project is scheduled to start production July 2022; however, the Carbon Capture 34 portion of this project has been delayed until 2025. The Muddy Creek project is still in 35 Agreement negotiations with Kern River. The Red Mesa Solar project appears that it could 36 be delayed until August 2022, and The Steel Solar project is currently reported to be on 37 schedule. The IPP repowering is still scheduled tol be online June 2025 (it is anticipated tol be 38 able to run on 30% hydrogen). FERVO Geothermal could be available summer 2025, but  39 pricing is still being worked on.  40 41  A line chart was used to represent firm power available through Western  42 Replacement Power (WRP). The allocation previously available is reduced to almost 40 43 percent due to drought conditions (from 475,000 to - 200,000). Mr. Johnson said that the 44 options for winter are to buy from the market, purchasc HLH power, purchase gas to run the 45 plant, and recall 4MW: from IPP for the period April 1- September (noling, however, thal  Page 3 of6    (PC, minutes October. 26, 2021)  there are coal availability issues with IPP). Hej pointed out that power purchased from the Mr. Johnson reported that the Council held a work session on October 12, 2021,to 4 discuss the current and proposed solar rates. The direction received at that meeting was to 5 adopt a new hybrid net metering solar rate with the following conditions:  2 market are billed on an hourly time period and are market driven.  3 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25  The current Net Metering or. Feed-in-Tariff customers' rates will not be affected by this new policy. These rates could be adjusted during the normal rate setting process. Approve a Hybrid Net Metering Solar Rate with the following provisions: Power generated and used behind the Net meter remains the customers. Power generated by the customer and purchased by the Utility will be at Power purchased by the customer will be at the current applicable residential All rates will be subject to the normal rate adjustments as needed. Current Feed-in-tariff customers can opt to change to the new format ift they desire. The customer would be responsible for any: required electrical work. The City will waive any inspection andj permit fees. BCL&P would waive any labor or meter fees during normal working hours. Current Net Metering customers' rates will be adjusted to match the new. Hybrid Net Metered in July 2030. At that time, all Net Metered customers would be on the This proposed rate schedulel has been reviewed by the Power Department staff, the  $0.05/kwh. orc commercial rate.  same rate.  26 City Manager, and the City Attorney and staffrecommends that the City Council approve it. 27 Following a short discussion, Commissioner Becker made a motion to recommend to the 28 City Council that Ordinance No. 2021-11 be adopted to amend the consolidated fee schedule 29 asi it pertains to certain rates for Bountiful City Light and Power. Councilman Higginson 30 seconded the motion and voting was unanimous. Commissioners Becker, Bell, Irvine, and  31 Summers, and Councilman Higginson voted "aye." 33 3100 SOUTH PROJECT UPDATE  32 34  Mr. Veigel narrated a PowerPoint which featured the equipment and processes which  35 are being used to re-construct the 3100 South project. Seven new poles are being set in 36 concrete in a rebar cage that is buried 18-21 feet deep. He said itl has sometimes been 37 difficult to get the concrete, but all ofthe foundations are now completed, and the project is 38 moving forward well, with the exception of some weather and concrete issues.  39 40 41 43  Commissioner Bell was excused at this time (9:00a.m.)  42 2022CALENDAR, APPROVAL  Mr. Johnson referred to the proposed schedule for the 2022 calendar year. Power  44 Commission meetings, to include known budget meeting schedules, July, December, June 45 APPAm meetings, Thanksgiving, IPA, and the UAMPS annual meetings. He asked fori input  Page 4of6    (PC minutes October. 26, 2021)  from the group. It was noted that the UAMPS Annual Meeting will be held in Logan, not 2 Midway. With that correction, the Power Commission schedule was adopted as presented:  3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 26 28 30 31 32 33 34 36 38 39 42 44 45 8:00 a.m. 46 47  January 25,2022 February 22, 2022 March 22, 2022 April 12,2022 May 24, 2022 June 28, 2022 July 2022 August 23, 2022 September 27, 2022 October. 25, 2022 November 22, 2022 December 2022  Tuesday - 8:00 a.m. Tuesday - 8:00 a.m. Tuesday - 8:00 a.m. Tuesday - 8:00 a.m. want tog gos andi ifyou want tickets to Grand Ole Opry by. January) Tuesday = 8:00 a.m. No PC Meeting Scheduled Tuesday = 8:00 a.m. Tuesday - 8:00 a.m. Tuesday = 8:00 a.m. Tuesday - 8:00 a.m. No PCmeeting scheduled  Tuesday - 8:00 a.m. (laimtPC8CCBadget  estimate)  APPA National Conference June 12-15, 2022 Nashville, Tn.(Pleasel let Allen! know ifyou  UAMPS Annual Meeting August 14-17, 2022, Logan  December 6, 2022 IPA Annual Meeting December 20, 2022 UAMPS Annual Meeting  Councilman Higginson made ai motion to approve thel Power Commission meeting  24 schedule for 2022. Commissioner Becker seconded the motion and voling was unanimous. 25 Commissioners Becker, Bell, Irvine, and Summers, and Councilman Higginson voted "aye." 27 Thej following items were included in the packet, but not discussed ini the meeting:  29 POWERSYSTEMS OPERATIONS REPORT  a. August 2021 Resource Reports b. September 2021 Lost Time/Safety Reports C. September 2021 Public Relation Reports d. September 2021 Outage Reports  35 OTHER BUSINESS  Alan Farnes reported that Mr. Pearce and a 3-man line crew helped Logan city when Mr. Farnes also reported on work that is being done at the Southeast Substation  37 ai recent disaster left 10,000 customers out of power for 301 hours.  40 where upgrades are being implemented. This work has been on-going for several months. It  41 is hoped that the substation will be back up by Friday, October 29th.  43 NEXT POWER COMMISSION  The next meeting of the Power Commission will be held on November 23, 2021, at  Page 5 of6    (PC minutes October 26, 2021)  1 ADJOURN 2 5 6 7 8  The meeting adjourned at 9:15 a.m. on ai motion by Commissioner Irvine and  3 seconded by Councilman Higginson. Voting was unanimous with Commissioners Becker,  4 Bell, Irvine, and Summers, and Councilman Higginson voting "aye."  n  Paul Summers, ACTING CHAIRMAN  C  Page 6of6