1 2 3 4 5 6  MINUTES OF THE REGULAR MEETING OF THE THE BOUNTIFULCITY POWER COMMISSION  September 28, 2021 - 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 John Marc Knight 14 15 Mayor 16 Randy Lewis 17 18 Excused 19 Jed Pitcher, Chairman 20 23 24 WELCOME 25  Power Department Allen Johnson, Director Jay Christensen Alan Farnes David Farnes Jess Pearce Luke Veigel Recording Secretary Nancy Lawrence  21 Zoom Meeting #8542398 5559, in conformance with COVID-19 guidelines and  22 restrictions; no one attended via Zoom.  Acting Chairman Summers called the meeting to order at 8:00: a.m. and welcomed  26 those in attendance. Mayor Lewis offered the invocation. Mr. Johnson called attention to 27 the photograph of East Canyon dam and reservoir which was used to introduce the 28 PowerPoint oft the meeting. It was noted that the current water level is lower than the 29 original dam, which has not been exposed since the new dam was constructed.  30 32  31 MINUTES-/ AUGUST24.2021  Minutes of the regular meeting of the Bountiful Power Commission held August 24,  33 2021 were presented and unanimously approved as written on a motion made by 34 Commissioner Becker and seconded by Councilman Higginson. Commissioners Becker, 35 Bell, Irvine, Knight, and Summers, and Councilman Higginson voted "aye". 37 BUDGET REPORT-) YEAR-TO-DATE 12-MONTH PERIOD ENDED 30JUNE 2021 39 Month period ended 31July 2021, noting that it is final. He reviewed the process which is 40 used to determine the estimate for Electric Metered Sales and noted that the estimates are 41 generally conservative. He also explained that there is a time delay oft two months for each 42 budget report due to EMS revenues and UAMPS power costs are not available until the 21st 43 and 25th of the following month, respectively, thus missing a Power Commission meeting. 46 At fiscal year-end 2021,aprelminary $500,402 was recorded in Accounts Receivable-  36 38  Mr. Christensen presented the Budget Report for the Fiscal Year-to-date (YTD)1-  44 45  BCLP has $657,243 ofc costs identified for the 08 September 2020 high wind event.  Page 1of6    (PCminutes September 28, 2021)  Grants, Permits, & Misc. on the balance sheet to recognize the approximate amount that 2 could be reimbursed from the Federal Emergency Management Agency (FEMA). This  3 reimbursement is still under review and subject to adjustment.  4 5  Total Revenues YTD were $3,281,094, above its HAB by $251,281. Major items  6 above or (below) budget included: Electric Metered Sales, $226,125, above its HAB by 8.1 7 percent; Airl Products, $28,558, above its HAB; and Street Light Income, $15,040, above its  8 HAB because ofbilling delays in the July's of prior years.  9 10  Total Operating Expenses were $2,661,415, above its HAB by $(250,803). Major  11 items (above) their HABS included: Power Cost Expense $(210,013; Insurance Expense, 12 $(43,050); and the transfer to the general fund $(33,361) with higher EMS. Commissioner 13 Bell asked about the insurance expense and Mr. Christensen explained that the City is self-  14 insured and has a cap.  15 16 17 18  Total capital expenditures YTD were $1,761.00.  Total Labor and Benefits Expense YTD (included in Operating Expenses YTD and  19 Capital Expenditures listed above) was $318,364. Asof30. June 2021, (the last pay period 20 in the YTD period), 6.6% or $347,921 ofthe TL&B could have been spent and the actual  21 TL&B was lower by $29,556.  22 23 25 26 28 29  Thc Net Margin YTD was $617,918 at month cnd with high EMS (including the Total cash and cash equivalents, $18,732,898, were down $(1,074,480) from Prior to the budget report being approved, Mr. Johnson pointed out that the natural  24 $600,000 estimate), partially offset by high power costs.  27 $19,807,379 at 30. June 2021.  30 gas expense is currently running one: month behind and $400,000 shown in August will be 31 pushed back to July, resulting inj power costs being approximately $600,000 over budgct 32 through August at this point. Even though we were hedged, because power costs were. high 33 (and ini this instance, natural gas specifically), there is a concern budget-wise overall. He 34 said that he fears there won'tl be too much ofa a margin at the end oft the year. Following a 35 briefdiscussion regarding the impact this makes on the transfer to the General Fund, 36 Commissioner Bell motioned to accept the Budget Report, Councilman Higginson seconded 37 the motion and voting was unanimous. Commissioners Becker, Bell, Irvine, Knight, and  38 Summers, and Councilman Higginson voted "aye".  39 41  40 COVID UPDATE  Mr. Pearce reported that the Power Department has had three incidences related to  42 Covid - (1) an unvaccinated employee had Covid but is now back to work; (2) a spouse that 43 had Covid and the employee was home caregiving but is now back to work; and (3)a 44 vaccinated employee who was exposed and is currently quarantining at home. About 70 45 percent oft the Power Department employees have been vaccinated. Several employees may 46 choose to get the vaccination due to mandates by SLCC where they are currently taking  Page 2of6    (PC minutes September 28, 2021)  classes. Additional masks and hand sanitizers have been ordered, though the masks are no  2 longer mandated.  3 4  Commissioner Becker asked ift the Department has been negatively impacted by  5 Covid asi it relates to hiring personnel. Mr. Pearce said wel have been short-handed since 6 March ini the tree trimming area. Job openings have been posted continuously since March 9 ONE UTAH MUTUAL, ASSISTANCE AGREEMENT APPROVAL/Amendel 12 have a Mutual Assistance. Agreement between PacifiCorp, the Municipalities, and the 13 REA's. Linemen were in short supply for all utilities due to the size of the event and other 14 events in the county at the time. We have participated in other mutual aid agreements in the 15 past, but this is the first time that PacifiCorp has been included. He said there will be no 16 significant impact on the budget and participation will provide stability and reliability to the 17 entire state power systems. He said there will be ai meeting at the State Capitol on October 18 7,2021, at 3:30 p.m. for participating entities to attend and sign the Agreement. The mayor 19 isi invited to sign for Bountiful. Itis staff's recommendation to participate.  7 and only 8 individuals have applied. We are still short one employee.  8 11  10 Agenda Item No.4)  Mr. Johnson reported that the wind event in September 2020 emphasized the need to  20 21  Councilman Higginson stated that he sees this as a great opportunity for all ofUtah  22 and he made ai motion to pass ai recommendation to the City Council to approve this Inter- 23 Local "One Utah Mutual Assistance Agreement" and authorize the mayor to sign on behalf 24 ofBountiful. Commissioner Irvine seconded the motion and voting was unanimous with 25 Commissioners Becker, Bell, Irvine, Knight and Summers, and Councilman Higginson 26 voting "aye". The mayor indicated that he would apprise the City Manager of this action. 27 Commissioner Summers noted that it would be well for water users across the State to work  28 together in a similar fashion.  29 31  30 RESOURCE SOLAR RATE UPDAIEAPPROVAL  Mr. Johnson reported that San Juan is still scheduled to be shut down June 2022. The  32 Enchant Project will start production in July 2022 (with a draft contract possibly being ready 33 by October 2021), with the carbon capture technology being delayed until 2025. Coal is still  34 being used. 35 36  We are still working with UAMPS on an agreement with Kern River for the Muddy  37 Creek project (which will be considered "green"), the Red Mesa solar project is facing a 38 delay that could go until August 2022 which will require us to find another resource for. July 39 2022, and the Steel project is currently on schedule. The IPP repowering is still scheduled 40 to be online in. June 2025 and the target is to be able to run 30 percent hydrogen. This 41 resource would not be green and would not be cheaper. Commissioner Summers expressed 42 concern about depending on a water project during a drought. We are also looking at a 43 geothermal resource - FERVO - which is in southern Utah and could be available by 44 summer of 2025. This would be a green dispatchable baseload resource. We are currently 45 working on the pricing. Other options would be to (1) buy on the market and (2) call back  46 IPP power.  Page 3 of6    (PC minutes, September 28, 2021)  1  Mr. Johnson referred to a line chart which demonstrated the CRSP power that is  2 currently scheduled (which accounts for 40 percent ofour resources) and how it relates to 3 other resources as a firm resource. However, iti is highly unlikely that we will continue to 4 have our same allotment of CRSP power due to the drought. Not only will our allotment be 5 reduced, but the rate schedule will also be changed with a proposed rate increase to become 6 effective December 1, 2021. He said that this is a' "very scary situation" for BCL&P. 9 Resources Recovery project at the South Davis Sewer District which produces gas. Mr. 10 Johnson explained that Wasatch Recovery sells directly to Dominion Gas which takes all of 11 that resource. Mr. Johnson said that we. have seven years of gas firmed up for our summer 12 load, but not for winter, because our CRSP resource has heretofore provided this resource. 13 His current challenge is to find 10-12 MW of power for the period December -] February 14 and a firm block is not needed. Our current gas charge, delivered, is $2.50/decatherm;  7 8  Mayor Lewis asked about the possibility/probability of working with the Wasatch  15 however, the current market rate is $6.00/decatherm.  16 17  Yet another item of concern is the push from the Federal "Build Back Better" Act  18 which is] proposing a 4 percent increase in green power each year during the period of2023 19 -2030. Mr. Johnson noted that coal is an issue, gas is an issue, hydro is an issue, and it will 20 take multiple good water years to bring the CRSP resource back to where it has been in the 21 past. Another issue is that the call back ofIPP power requires 161 months' notice. He also  22 noted that this could impact the City budget as much as $1 million/year.  23 24  Options he will be looking at for winter resources are: buy from the market,  25 purchase HLH power, purchase gas to run the plant, and/or recall 4 MW from IPP for the 26 period April - September (however, the availability of coal poses a concern for the IPP 27 option). Also of concern will be to adjust solar rates to positively balance the load every 28 hour. The fact that solar power is not needed in the morning (when our customers are 29 generating it) offsets a portion oft the positive impact that this resource could have. 32 on the spreadsheet for Residential net metering customers, Commercial net metering 33 customers, and Residential Feed-in Tariff customers. With a total of242 customers, the 34 total average lost revenue, per customer per year is $795.45 and the total Lost Revenue per  30 31  Mr. Christensen reviewed the average lost revenue per customer/per year as reflected  35 year is $192,498.  36 37  The city is currently looking at participation in the Red Mesa Tapaha Solar project  38 which would come online June 2022, and the Steel SolarI LLC which will come online 39 December 2022. The average solar delivered cost is anticipated to be 3.87 cents/kwh. (This 40 potentially sets what BCLP'S energy credit per KWH ofs surplus solar generation, our "buy- 41 back" rate should be). We are currently paying our net metering residents 8 cents/kwh. He 42 referred to customer examples which demonstrated how much the customer buys and sells, 43 total production, the percent excess, and total demand. Net metering and Feed-in Tariff 44 models were then discussed. Commissioner Irvine suggested that at some point, it would be 45 well to consider reducing the subsidy which is being given to solar customers in Bountiful.  46 Commissioner Knight was excused at this time.  Page 4of6    (PC, mimutes September. 28, 2021)  2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29  Mr. Johnson reviewed a staff recommendation that a new Hybrid Net Metering Solar 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 Approve al 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 $0.05/kwh ($0.01 higher than what our costs would be and giving some benefit Power purchased by the customer will be at the current applicable residential or  3 Rate schedule be adopted, with the following conditions:  process.  to our solar customers). commercial rate.  All rates will be subject to the normal rate adjustments as needed.  Current Feed-in-Tariff customers can opt to change to the newi format ift they desire. The customer would be responsible for any required electrical work The City will waive any Inspection and permit fees. BCLP 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 same Mr. Johnson emphasized that we are not guaranteeing ai rate to our solar customers,  rate.  30 but one that will be reviewed annually and based on this model. Following discussion, 31 Councilman Higginson made a motion to pass along a positive recommendation oft these key 32 points to the City Council. Commissioner Irvine seconded the motion which passed 33 unanimously with Commissioners Becker, Bell, Irvine, and Summers and Councilman 34 Higginson voting "aye". Councilman Higginson thanked the staff for their time and effort in 35 preparing this proposed Hybrid model solar rate schedule and he noted that for current solar 36 customers, being able to use their solar first has been a key motivator for them.  37 38  Mr. Johnson informed the Commission that the proposed schedule ofaction for this  39 item would be a Council work session prior to City Council on October 12tha at 61 p.m., with 40 tentative adoption ini the City Council meeting on October 26, 2021. All members were 43 Thefollowing items were included in the packet, but not discussed in the meeting:  41 invited to attend these meetings.  42 44 46  45 POWERSYSTEMS OPERATIONS REPORT  a.July 2021 Resource Reports  Page 5 of6    (PC minutes September. 28, 2021)  1 2 3 4 6 7 9 10 8:00 a.m. 11 12 ADJOURN 13 16 17 18  b.J July/August 2021 Lost' Time/Safety Reports c.July/August 2021 Public Relation Reports d.. July/August 2021 Outage Reports  5 OTHER BUSINESS  None.  8 NEXT POWER COMMISSION  The next meeting oft the Power Commission will be held on October 26, 2021,at  The meeting adjourned at 10:00 a.m. on ar motion by Commissioner Irvine and  14 seconded by Councilman Higginson. Voting was unanimous with Commissioners Becker,  15 Bell, Irvine, Pitcher and Summers, and Councilman  voting"aye".  Paul Summers, ACTING CHAIRMAN 7A  Page 6 of6