MINUTES OF THE. JOINT MEETING BOUNTIFUL CITY COUNCIL AND THE BOUNTIFUL LIGHT & POWER COMMISSION NOVEMBER 21, 2024-8:00: a.m. Those in Attendance 2 3 4 5 6 7 8 OF THE 9 Power Commission 10 Paul Summers, Chairman 11 Susan Becker, Commissioner 12 Dan Bell, Commissioner 13 David Irvine, Commissioner 14 John Marc Knight, Commissioner 15 Jed Pitcher, Commissioner 16 Cecilee Price-Huish, Councilwoman 17 18 City Officials 19 Kendalyn Harris, Mayor 20 Kate Bradshaw, Councilmember 21 Beth Child, Councilmember (via Zoom) 22 Gary Hill, City Manager 23 Brad Jeppsen, City Attorney 24 25 26 WELCOME 27 Power Department Allen Johnson, Director Alan Farnes, Generation Supt. Dave Farnes, Safety/Customer Service Tyrone Hansen, Accountant Jess Pearce, Supt. of Operations Luke Veigel, Engineer Nancy T. Lawrence, Recording Sec. Citizens Gary Davis Ron Mortensen Excused Richard Higginson, Councilmember Matt Murri, Councilmember Chairman Summers called the meeting to order at 8:00 a.m. and welcomed those in 28 attendance. He noted that Councilmember Beth Child was attending via Zoom. He also 29 reported the recent passing oflong-time resident, John R. Cushing, who served the community 30 in many ways, including Mayor, City Councilman, and member of the BCL&P Power 31 Commission. 32 34 37 38 33 FUTURE POWER RESOURCE DISCUSSION 36 Sales Contracts need to be approved by December 2, 2024. Chairman Summers opened the power resource discussion, noting that ifthe City wishes 35 to participate with UAMPS in base load and peaking resources currently being offered, Power Mr. Johnson reviewed that BCL&P is a member of Utah Associated Power Systems 39 (UAMPS) where we are involved in current and future power projects. UAMPS is the vehicle 40 that allows us to use PacifiCorp transmission lines and to purchase projects on a larger scale. 41 PacifiCorp has officially joined the California ISO which means that they will be meeting all 42 the same criteria that California has adopted. What that means to us is, that since PacifiCorp is 43 the balancing authority for the UAMPS group, by default everyone else must also meet that 44 same criterion. All conditions must be met by the first quarter of 2026. This will have a big 45 impact on metering (through UAMPS), with more monitoring through SCADA, and possibly 46 the need for UAMPS to hire five more employees to accomplish the metering process. 47 Page 1 of6 (PCI mimutes. November 21,2024) 1 UAMPS has identified a need to pursue a variety of new resources for the members to 2 ensure aj portfolio to be able to deliver power to the membership on a least cost, least risk, and 3 toj provide reliable power to meet the needs of members now and into the future. The members 4 through UAMPS are working to develop both a combined cycle plant (forb base loading) located 5 in Power County Idaho and a peaking plant located in Millard County Utah. Due to the 6 development costs associated with these projects, UAMPS is pursuing Power Sales Contracts 7 fore each ofthese projects, which will allow for the financing ofthe development costs. To move 8 forward with the transmission interconnection for these projects, PacifiCorp requires a $5 9 million per project transmission deposit, which is expected to be made in early January 2025. 10 (Missing this deadline would delay the project for a year to eighteen months.) 11 12 The Power County Idaho Power Project is a 360 MW combined cycle gas-fired turbine 13 that is anticipated tol bei in commercial operation in 2031. It will have a base load operation and 14 be able to ramp up: from the base load operational point to the peak output to follow the system 15 load and to adjust for other non-firm resources. He reviewed the conditions that the Project 16 Management Committee has associated with this project, which is estimated to have a levelized 17 cost of power of $69/MWh in 2024$'s with a 75 percent load factor. A 40% load factor would 18 be estimated to be $94/MWh. These values are within future powerindices for future power on 19 the market. 20 21 The Millard County Utah Power Project is aj peaking project with a 2001 MW fleet of10- 22 12 Gas-Fired Reciprocal Engines that are anticipated to be in commercial operation in 2029. 23 This project is expected to be comprised of internal combustion engines which can be started 24 and stopped as needed, and could thus be used to cover peaks and system shortages as needed. 25 The project management committee has elected to: (1)effective date would be when it achieves 26 an 85% subscription rate; (2) once the subscription rate is achieved, a maximum $/MWH will 27 bes set for thej project, with a condition to terminate thej project; and (3) the Project Management 28 Committee has the ability to downsize the project's size to ensure that the 100% subscription 29 rate is achieved. The Millard County project is estimated to have a levelized cost of power of 30 $112/MWH in 2024$'s with a 40 % load factor. A 60% load factor would be estimated to be 31 $93/MWH. The proposed project and contract has been reviewed by the Power Department 32 staff, City Attorney, and City Manager, recognizing significant impacts, and it is the Staff 33 recommendation to approve authorizing the Mayor to sign Resolution 2024-11. 34 35 Mr. Johnson then reviewed the current resources that we are using (CRSP, IPP, solar, 36 hydro, power plant, and geothermal and how they are used - peaking and/or base load). He 37 explained how the scheduling is done and the impacts of natural gas usage. The group 38 participated in a lengthy discussion regarding the current and future perspective of these 39 resources, after which Commissioner Bell made a motion to recommend approval of the base 40 load project to the City Council. Commissioner Pitcher seconded the motion. After further 41 discussion the motion was dropped and ai new motion was made by Commissioner Summers to 42 recommend approval to the City Council for RESOLUTION #2024-11, "A RESOLUTION 43 AUTHORIZING AND APPROVING THE POWER COUNTY POWER PROJECT POWER 44 SALES CONTRACT WITHUTAH ASSOCIATED MUNICIPAL POWER SYSTEMS; AND 45 RELATED MATTERS" and RESOLUTION #2024-12, "A RESOLUTION AUTHORIZING 46 AND APPROVING THE MILLARD COUNTY POWER PROJECT POWER SALES 47 CONTRACT WITH UTAH ASSOCIATED MUNICIPAL POWER SYSTERMS; AND 48 RELATED MATTERS". The motion was seconded by Commissioner Knight and carried bya a Page 2 of5 (PC minutes November. 21, 2024) majority. Commissioners Becker, Irvine, Knight, Pitcher and Summers, and Councilwoman 2 Price-Huish voted "aye" and Commissioner Bell voted "nay". 3 4 7 9 At10:10a.m. the Chairman recessed the meeting for a 5-minute break. Members of the 5 City Council and City Officials were excused, and at 10:18 a.m. he called the meeting of the Power Commission back to order. MINUTES- OCTOBER 22,2024 Minutes of the regular meeting of the Bountiful Power Commission held October 22, 10 2024 were presented and unanimously approved as written. Commissioner Pitcher made the 11 motion to approve and Commissioner Becker seconded the motion. Commissioners Becker, 12 Bell, Irvine, Knight, Pitcher and Summers, and Councilwoman Price-Huish voted "aye". 13 15 14 BUDGET REPORT-) YEAR TO DATE 3-MONTH PERIOD Mr. Hansen presented the Budget Report for the Year to Date 3-Month period ended 16 September 30, 2024. Total Revenues YTD were $11,467,207, above the HAB by $919,507. 17 The major item above budget was Electric Metered Sales at $752,748 8.0% above its HAB; 18 Contribution in Aid to Construction was $(64,061), below its HAB. 19 20 Total Operating Expenses YTD were $8,658,703, below the HAB by $867,770. The 21 major item (above) budget was Hydro Transmission expense, $(163,989), which includes 22 material costs associated with the fire and the insurance claim has not yet been submitted. 23 Power Cost Expense was below its HAB at $784,179 (Power Generation was under $45K and 24 Power Resources Cost was under 739K. 25 26 28 29 32 33 Total Capital Expenditures YTD were $111,866, which included $9,000 at 400 South Total Labor and Benefits was $1,136,426. Asof14 September 2024 (the last pay period 27 Main, $15,000 for Renaissance Lot 11, and $88,000 for the Northwest Substation. 30 paid in the YTD period), 20.8% or $1,245,522 ofthe TL&B could have been spent; the actual 31 TL&B was $109,096 below that target. The Net Margin for the YTD was $2,696,638 as revenues are above budget and power 34 costs are coming in under budget. Total cash and equivalents were a net $26,100,183 at month 35 end, up $3,039,810 from $23,060,363 at 30. June 2024, and $9,926,183 above the $16,174,000 36 total reserved cash requirement. Commissioner Pitcher made a motion to accept the budget 37 report as presented, and Commissioner Becker seconded the motion. Commissioners Becker, 38 Bell, Irvine, Knight, Pitcher and Summers, and Councilwoman Price-Huish voted "aye". 39 41 40 PINEVIEW DRAFTVALVE ACTUATOR PURCHASE Alan Farnes reported that during the end oft the season when equipment inspections were 42 done at the Pine View hydroelectric power plant, it was discovered that the downstream draft 43 valve actuator was broken. A single source quote was received from Atsco sales & Service for 44 a new actuator for a total cost of$20,236.00. Itis the recommendation ofs staff to approve this 45 quote. Replacement of the actuator will be scheduled for fall 2025, when the plant can be 46 offline. The. Actuator will bej purchased: from the PineView Hydroelectric maintenance account. 47 Commissioner Knight motioned to recommend approval of this quote. Councilwoman Price- Page 3 of5 (PC, minutes November 21, 2024) Huish seconded thei motion. Commissioners Becker, Bell, Irvine, Knight, Pitcher and Summers, 2 and Councilwoman Price-Huish voted' "aye". 4 NW BATTERY PURCHASE 3 5 Alan Farnes reviewed that it is planned to rebuild the Northwest Substation (originally 6 constructed in the early 1970's. Iti is located east ofthe Viewmont High School football field. 7 This rebuild project is tentatively scheduled to begin in September, with the new substation completed and back in service by or before June 2026. He said we are ini thej process ofbidding 9 out thel long lead items to determine the actual start time for the project. Requests tol bid on one 10 Battery System were send to four suppliers; three responded. It is the recommendation ofs staff 11 to accept the bid: from PPR: fora a Concentric at a total price of $42,172 with a delivery of 12-14 12 weeks. The lowest bid, from Irby, did not meet the specifications due to the charger and the 13 racking system. Councilwoman Price-Huish made a motion to this effect, Commissioner 14 Pitcher seconded the motion. Commissioners Becker, Bell, Irvine, Knight, Pitcher and 15 Summers, and Councilwoman Price-Huish voted "aye". 17 NWC CIRCUITSWIICHER PURCHASE 16 18 20 10th. 21 23 Mr. Farnes explained that there is a delivery issue on this item and no action will be 19 taken today. The Commissioners will be polled prior to City Council meeting on December 22 NW GROUP OPERATED SWITCH PURCHASE Alan Farnes explained that also included in the Northwest Substation rebuild project is 24 a Group Operated Switch purchase. Invitations to bid were sent to six suppliers and three 25 responded. The low bidder, Irby, did not meet the specifications because they bid the wrong 26 Basic Impulse Level switch. It is the recommendation of staff to accept the lowest qualifying 27 bid from Carlson Sales for seven sets of Pascar three phase 46kV Group Operated switches in 28 the amount of$111,755 (total price). Delivery is 32-24 weeks. Commissioner Becker made a 29 motion to recommend approval of this bid. Commissioner Pitcher seconded the motion. 30 Commissioners Becker, Bell, Irvine, Knight, Pitcher and Summers, and Councilwoman Price- 31 Huish voted "aye". 32 34 33 NWVOLTAGETRANSFORMER PURCHASE Mr. Farnes reported that thei newl NW: substation will also need five voltage transformers. 35 Two suppliers were invited to bid and it is recommended that the low bid from Carlson Sales 36 for five (5) GE Vernova transformers be approved in the amount of $45,733. Delivery was 37 quoted at 31-33 weeks which will meet the proposed construction schedule. Commissioner 38 Pitcher made a motion to approve the transformer bid from Carlson Sales as presented. 39 Councilwoman Price-Huish seconded the motion. Commissioners Becker, Bell, Irvine, Knight, 40 Pitcher and Summers, and Councilwoman Price-Huish voted "aye". 42 2025 CALENDAR APPROVALIALADJUSTED) 41 43 Mr. Johnson reported that the following 2025 Power Commission Schedule, tentatively 44 approved: in the last meeting for approval, has been confirmed. The schedule! has been prepared 45 using the typical fourth Tuesday for our normal meetings, with adjustments as needed to 46 accommodate budget meeting schedules, July, December, June APPA meetings, IPA, and the 47 UAMPS annual meetings. 48 Page 4 of5 (PC minutes November: 21,2024) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 22 23 24 25 26 27 OTHER BUSINESS 28 29 December 17. 30 31 33 35 36 a.m. 37 38 ADJOURN 39 42 43 44 45 46 January 28, 2025 February 18, 2025 March 25, 2025 April 22, 2025 May 27, 2025 June 24, 2025 July 2025 August 26, 2025 September 23, 2025 October 28, 2025 November 18, 2025 December 2025 Tuesday 8:00 a.m. 3rdTuesday - 8:00 a.m. Tuesday - 8:00 a.m. Tuesday - 8:00 a.m. Tuesday 8:00 a.m. No PC Meeting Scheduled Tuesday - 8:00 a.m. Tuesday - 8:00 a.m. Tuesday - 8:00 a.m. 3rd Tuesday - 8:00 a.m. (confirmed) Tuesday - 8:00 a.m. Joint PC and CC - Budget APPA National Conference June 8-12, New Orleans LA UAMPS. Annual. Meeting Aug 17-20, 2025 Squaw Valley, CA December 2, 2025 IPA Annual Meeting December 17,2025 UAMPS Annual Meeting NoPC Meeting This item was for information purposes only and required no action. 20 Thej following items were included in the packet, but not discussed. in the meeting. 21 POWER SYSTEM OPERATION REPORT a. September Resource Reports b.C October 2024Lost' Time/Safety Reports c.October 2024 Public Relation Reports d. September 2024 Outage Reports Itv was noted that there will be a dinner meeting prior to the UAMPS. Annual Meeting on Mr.J Johnsoni reported that flowers will bes sent tot the memorial services fori former Power 32 Commissioner John Cushing on behalf of thel Power Department and the Power Commission. 34 NEXT POWER COMMISSION MEETING The next meeting of the Power Commission will be held on January 28, 2025 at 8:00 The meeting adjourned at 10:25 a.m. on a motion made by Commissioner Pitcher and 40 seconded by Commissioner Becker. Commissioners Becker, Bell, Irvine, Knight, Pitcher and 41 Summers, and Councilwoman Price-Huish voted "aye". Paul Summer, Chairman G Page 5of5