1 2 3 4 5 6  MINUTES OF THE. REGULAR MEETING OF THE THE. BOUNTIFUL CITY POWER COMMISSION  August 24, 2021 - 8:00 a.m. Those in Attendance  7 Power Commission 8 Jed Pitcher, Chairman 9 Susan Becker 10 Dan Bell 12 David Irvine 13 John Marc Knight 14 Paul Summers 15 16 17 19 restrictions. 20 21 WELCOME 22 24 26  Power Department Allen Johnson, Director Jay Christensen Alan Farnes David Farnes* (via Zoom) Jess Pearce Luke Veigel Recording Secretary Nancy Lawrence  11 Richard Higginson, City Council Rep.  18 *Zoom, Meeting #845 0846 8854, in conformance with COVID-19 guidelines and  Chairman Pitcher called the meeting to order at 8:00 a.m. and welcomed those in  23 attendance. Alan Farnes offered the invocation.  25 MINUTES-JUNE 29,2021  Minutes of the regular meeting oft the Bountiful Power Commission held June 29,  27 2021 were presented and unanimously approved as written on a motion made by 28 Commissioner Summers and seconded by Commissioner Bell. Commissioners Becker, 29 Bell, Irvine, Knight, Pitcher and Summers, and Councilman Higginson voted "aye". 31 BUDGET REPORT-) YEAR-TO-DATE 12-MONTH PERIOD ENDED 30. JUNE 2021 33 Month period ended 30 June 2021, noting that it is preliminary and does not reflect year-end 34 adjustments. He said that the Electric Metered Sales (EMS) estimate (used only in the 35 income statement) of $604,029.70 has been removed from this budget report. Wind event 36 costs have not been changed since the last report and we are waiting to hear from FEMA  30 32  Mr. Christensen presented the Budget Report for the Fiscal Year-to-date (YTD) 12-  37 regarding the next step.  38 39  Total Revenues YTD were $37,054,667 below its historically allocated budget  40 (HAB) by $(5,156,081). Major items above or (below) budget included: EMS was $(88,000) 41 or 0.4% below its HAB, which includes the removal of the EMS estimate at fiscal year-end; 42 Air Products income was $(332,826)s below its HAB with an average load factor of51.7%; 43 Use of Retained Earnings included the $8,630,000 budgeted toj pay off the 2010 Bond but 44 was $(4,762,235) below its HAB as there were no other budgeted uses ofr retained earnings; 45 and Preliminary Interest Income on Investments was $(49,805) below its HAB as it was 46 missing June data and also reflected a lower average investment yield of1.13% instead of  Page 1of6    (PC, minutes August 24, 2021)  the 1.5% budgeted. Contribution in Aid to Construction was above its HAB by $94,335 and  2 included eight major development projects.  3 4  Total Operating Expenses YTD were $33,938,506, below its HAB by $3,952,242.  5 Majori items below or (above) their HABs included: Power Cost Expense was $930,938 6 below its HAB due to careful purchasing and scheduling and selective use of the three 7 turbines; substation expense was $157,999 below its HAB and Computer Expense was 8 $113,479 below its HAB because some of their budgeted items were not done; Distribution 9 expense was $74,240 below its HAB even though it included unbudgeted wind expenses; 10 Street Light expense was $(38,481) above its HAB with needed extra work; 2010 Bond 11 Interest expense was $73,955 below its HAB due to the early repayment ofthel Bond; and 12 Amortization of the San Juan Power Plant was $1,212,235 below its HAB because the  13 Amortization Expense has not yet been booked.  14 15  Total Capital Expenditures YTD were $1,239,018 (on a budget of $4,320,000).  16 Major items, excluding labor, included: $522,525 for feeder #575; $255,430 for ai new 17 double bucket truck; $195,320 for ai new. EZ: Hauler and trailer; $50,423 for feeder #272; 18 $37,424 for buildings & warehouse; $32,129 for The Cottages on Main St.; $24,991 for the 19 Renaissance Center; $22,568 for the Stone Creek project; $15,509 for 500 South Orchard;  20 and $14,498 for the 400 North pump.  21 22  Total Labor and Benefits Expense YTD (included in Operating Expenses YTD and  23 Capital Expenditures listed above) was $4,469,562. As of30. June 2021, (thel last pay period 24 in (he YTD period), 100% or $4,709,444 ofthe TL&B could have been spent and the actual  25 TL&B was $239,882 below that target. 28 operating costs were below budget.  26 27 29 30 32 33  The Net Margin YTD was $1,877,143 at month end as power costs, and many other Total cash and cash equivalents, $19,807,379, were down $(6,758,090) from Following a brief discussion, Commissioner Bell motioned to accept the Budget  31 $26,565,468 on 30 June 2020, primarily with the repayment oft the 2010 Bond. 34 Report, Councilman Higginson seconded the motion and voting was unanimous. 35 Commissioners Becker, Bell, Irvine, Knight, Pitcher and Summers, and Councilman  36 Higginson voted "aye".  37 39  38 DIRECTIONAL BORING QUOTE APPROVAL  Mr. Veigel reviewed that bids were received and approved by the City Council for  40 Black and McDonald to perform four (4) distribution and nine (9) street light projects in 41 February. InJuly several additional street light projects and Feeder 272 projects were 42 approved. All work has been completed. There are: four new additional directional boring 43 projects that need to be done and Black and McDonald has provided a quote of $89,790 to 44 complete this work. Itis the recommendation ofs staff to approve this additional amount. He 45 referred to maps in the packet and described the additional projects, following which 46 Commissioner Becker motioned to recommend approval of the bid from Black and  Page 2 of6    (PC minutes. August 24, 2021)  McDonald ini the amount of $89,790 to the City Council. Commissioner Summers seconded 2 thc motion and voting was unanimous with Commissioners Becker, Bell, Irvine, Knight,  3 Pitcher and Summers, and Councilman Higginson voling "aye".  4 6  5 477 ACSR PURCHASE. APPROVAL  Mr. Veigel informed the Commission that we: need to purchase 477. ACSR wire for  7 the 3100 South project. The wire is currently unavailable from most vendors, so it was bid 8 as a single source item. Anixter Power Solutions (Salt Lake City) submitted a bid in the 9 amount of $30,917.00. Iti is the recommendation ofs staff to approve this bid. Commissioner 10 Summers made ai motion to recommend to the City Council approval oft the bid from Anixter 11 Power Solutions, as presented. Councilman Higginson seconded the motion and voting was 12 unanimous. Commissioners Becker, Bell, Irvine, Knight, Pitcher and Summers, and  13 Councilman Higginson voted "aye". 15 CONDUIT PURCHASE APPROVAL  14 16  Mr. Pearce explained that the inventory ofPVC conduit is running low and we need  17 tor replenish it. The conduit purchase will be used mainly on Bountiful Boulevard for the 18 newi road to connect to the "B". Bids were requested and it is the recommendation ofs staff 19 to approve the low bid from Anixter Power Solutions in the amount of $72,510.00. He 20 pointed out that in addition to ai more timely delivery, the cost is substantially lower due to 21 timing oft the purchase. This expenditure will bej partially reimbursed by the developer when 22 homes are constructed. Following a brief discussion, Councilman Higginson made a motion 23 tor recommend to the City Council approval of the purchase ofPVC conduit from Anixter 24 Power Solutions, as presented. Commissioner Summers seconded the motion which carried 25 unanimously. Commissioners Becker, Bell, Irvine, Knight, Pitcher and Summers, and  26 Councilman Higginson voted "aye".  27 28  Commissioner Summers took the opportunity at this time to express tol Mr. Pearce  29 his appreciation (and that oft the Rotary Club) for the exceptional support that BCL&P gave 30 tot the Rotary Club for the recent "Coats for Kids" car show fund raiser. He said, "We could  31 never do this event without the support oft the Power Department".  32 34  33 COVID UPDATE  Mr. Pearce reported that about 70 percent of the Power Department employees have  35 been vaccinated. Additional masks and hand sanitizers have been ordered, though the masks 36 are no longer mandated. He explained that the City had given all employees an additional 37 801 hours of sick leave during the Covid "season", but, as of. June, 2021, the 80 hours were 38 taken away. Employees needing time off for Covid (whether they are sick or are caretaking 39 family) now must use the regular sick leave. Mr. Johnson said that he will continue to Zoom 40 the Power Commission meetings for anyone who wishes to not attend inj person. Utah is  41 currently experiencing an average of1,000 new cases per day. 43 RESOURCE SOLAR RATE UPDATEAPPROVAL  42 44  Mr. Johnson reported that San Juan is still scheduled tol be shut down June 2022. The  45 Enchant Project will start power production in July 2022 (with a draft contract possibly 46 being ready by September 2021), with the carbon capture technology being delayed until  Page 3of6    (PC minutes August 24, 2021)  2025. Coal is still being used. Commissioner Irvine asked about al Bountiful group that is 2 exploring the possibility of going entirely green. There was a brief discussion regarding this 3 effort, and it was noted that Bountiful's goal is to be 40 percent carbon free, but the hydro 6 Creek project (which will be considered "green"), the Red Mesa solar project is facing a 7 delay that could go until August 2022 which will require us to find another resource for. July 2022, and the Steel solar project is currently on schedule. The IPP repowering is still 9 scheduled tol be online in June 2025 and the target is to be able to run 30 percent hydrogen. 10 This resource would not be green and would not be cheaper. The downside to this project is 11 that California has mandated that by 2045 natural gas cannot be used for power generation. 12 We are also looking at 5 - 10 MW ofthe FERVO geothermal project which isi in Utah and 13 could be available by summer of 2025. This would be a green dispatchable baseload  4 resources are not considered "green".  5  We are still working with UAMPS on an agreement with Kern River for the Muddy  14 resource. We are currently working on the pricing.  15 16  Discussion followed on1 the CRSP resource and options which may be present -  17 either a rate increase and/or a smaller allocation oft the resource. CRSPsanticipated Rate 18 Adjustment schedule is anticipated to be available November 1, 2021. Ifadditional resource 19 isi needed at that time, 4 MW could be supplied through IPP. We could also run the Plant, 20 for which we. have firm gas, but we don'thave gas purchased. There is also a concern about 21 the pressure on bringing additional gas into the plant in the winter. In the past, wel have run 22 the small unit in the winter, but not the larger units. Basically, we cannot make any major  23 decisions until after the CRSP November 1,2 2021 deadline.  24 25  Commissioner Pitcher asked ift the City has considered a majur campaign lo reduce  26 electrical usage, similar to the current campaign to reduce water usage. Mr. Johnson noted 27 that this should be considered; however, he noted that our energy usage is down compared 28 toj prior years, primarily due to more energy-eficient lights and fixtureslequipment. It was 29 noted that since CRSP power costs could increase as much as 50 percent, incentives should 30 be given for power conservation. Some feel that the solution is to increase the use ofs solar. 31 However, Mr. Johnson responded that our need for additional energy is at a time of day 32 when there is no solar generation. He: reviewed that power purchases are billed on an hourly 33 time period and the hourly rate is market driven. It was also noted that a demand charge is 34 included with all power and includes plant generation. Power costs for June were $400,000 35 above budget, not including the UAMPS pool costs that were over budget by $2 million 36 dollars. UAMPS has not revealed how or ifthe pool costs will be allocated. We still do not 37 have information on. July's power costs. He suggested that it could be very similar to. June  38 and August, too, has been unseasonably warm.  39 40  Mr. Johnson reviewed the average cost ofCity solar purchases: Red Mesa Tapaha at  41 2.966 cents/kwh, and Steel Solar LLC at: 3.145 cents/kwh. When delivery costs are factored 42 in, the average solar delivered cost is 3.87 cents/kwh. A brief discussion followed regarding 43 nuclear costs, including transmission and losses Commissioner Pitcher suggested that it 44 would be good for Mr. Johnson to meet with the City Council to review this critical matter.  45 46  Page 4 of6    (PC minutes. August 24, 2021)  SOLAR UPDATE  2  Mr. Christensen reviewed the Solar Customer Production & Usage Report, calling  3 attention to the total customers (194 residential Net Metering; 6 Commercial; and 42 Feed in 4 Tariff). He explained that this report is designed to show the net loss ofrevenue to the City 5 from solar customers, which is $(193,535) average for the rolling year of August 2020 6 through. July 2021. This is an average of $(799.73) lost per customer. He noted that with 7 the Net Metering customers, they put a fair amount of load on the system because of the 8 transformer first delivering power tot them and then their solar generation returning power to 9 us. The report also showed for Feed In Tariff customers the amount of power generated 10 during the three blocks of time: from 12 midnight to 12 noon was 31.8%; from 12 noon to 4 11 pm was 50.3%; and from 4 pm to midnight was 17.8% percent. Our peaking time is 12 between 4 pm and midnight when very little solar power is available, and resources are most  13 needed. 14 15  Mr. Johnson noted that in the last meeting it was anticipated that a staff  16 recommendation would be forthcoming at this time for a solar buy-back rate ofl less than 8 17 cents/kwh. Due to other issues and time constraints, the staffis not prepared to make a 18 recommendation at this time, other than go back to modified residential net metering with 19 buy back at a lower rate - lower than 8 cents/kwh. He said the average delivery cost of 20 purchasing solar on the market is between 4.5 and 5 cents/kwh and it would be a general 21 recommendation to offer our customers this rate. He requested that the Commissioners 22 share their thoughts and that the staffcontinue to study the matter. In response to a question 23 from the Commission, Mr. Johnson said his recommendation would be to offer feed-in 24 customers to move to the new. Modified Net Metering rate ift they choose, with the following 25 conditions: (1) pay for excess power produced at 41 to5 5 cents; (2) pay the current rate: for 26 power delivered from the utility; and (3) excess generation at the end ofthe year is not  27 refunded. 28 29 32 34 36 37 38 39 40 42 43 45 46 8:00 a.m.  Chairman Pitcher suggested that this matter be tabled and that the staffb be given an  30 additional month to firm up the language for proposed changes. It was noted that more 31 information could be available regarding CRSP by that time, also. No action was taken. 33 Thefollowing items were included ini the packet, but not discussed in the meeting:  35 POWER SYSTEMS OPERATIONS REPORT  a. June 2021 Resource Reports C.J July 2021 Public Relation Reports d.. July 2021 Outage Reports  b.July 2021 Lost Time/Safety Reports (There was a brief discussion on this item).  41 OTHER BUSINESS  None.  44 NEXTI POWER COMMISSION  The next meeting of the Power Commission will be held on September 28, 2021,at  Page 5of6    (PC minutes August. 24, 2021)  1 2 ADJOURN 3 6 7 8 9  The meeting adjourned at 9:58 a.m. on a motion by Councilman Higginson and  4 seconded by Commissioner Summers. Voting was unanimous with Commissioners Becker, 5 Bell, Irvine, Knight, Pitcher and Summers, and Councilman Higginson voting "aye".  Jed Pitcher, CHAIRMAN R  Page 6of6