MINUTES OF THE 2 BOUNTIFUL LIGHT & POWER COMMISSION 3 April 22, 2025 - 8:00 a.m. 4 5 Those in Attendance 6 7 Power Commission Power Department 8 Susan Becker, Chairman Allen Johnson, Director 9 Dan Bell, Commissioner Alan Farnes, Generation Supt. 10 David Irvine, Commissioner Jess Pearce, Supt. ofOperations 11 John Marc Knight, Commissioner Tyrone Hansen, Accountant 12 Matthew Myers, Commissioner Luke Veigel, Engineer 13 Jed Pitcher, Commissioner 14 Visitors 15 City Officials 16 Charles Benson, Street Department 17 Kendalyn Harris, Mayor Scott Redding, Street Department 18 Kate Bradshaw, City Council Jared Edge, Street Department 19 Beth Child, City Council Gary Davis 20 Gary Hill, City Manager 21 Galen Rasmussen, Asst. City Manager Recording Secretary 22 Jessica Sims, City Human Resources Nancy Lawrence 23 24 EXCUSED 25 Cecilee Price-Huish, City Council 26 Richard Higginson, City Council 27 28 WELCOME 29 Chairman Becker called the meeting to order at 8:00 a.m. and welcomed those in 30 attendance. The prayer was offered by Matt Myers. 31 32 BUDGET PRESENTATION 33 Mr. Hansen presented an overview of the Budget Report which included major roles 34 and critical functions of the Bountiful City Power Department and a description of the 35 department. The proposed budget for FY 2026 is balanced at $43,910,181, which includes the 36 following increases: 3% rate; 3% Feed-in Tariff; and 10% in Fees. It also includes a Solar net 37 Metering buy back rate reduction to $0.07. The Annual Pole Attachment fee will be increased 38 from $14 to $15. Bountiful City Light & Power (BCLP) provides electrical power to 39 approximately 17,300 customers - 15,652 residential, 1,647 commercial, and 1 industrial. 40 41 BCLP staff includes a 24-hour Dispatch, Line crews, Tree crews, Substation 42 Technicians, Engineer and Power System Planners, Metering Technicians, a Safety Director, 4 43 on-call personnel with 20-minute response and Office Staff. The department is composed of 6 44 substations, with 42 miles of transmission lines and 225 miles of distribution lines. There are 45 also 75 miles of street light circuits. He identified the following Power Resources: Colorado 46 River Storage project, Intermountain Power Project, a natural gas fired power plant, hydro Page 1 of5 (PC minutes. April 22, 2025) 1 projects, solar projects, and contracts from industry suppliers. He summarized that the priorities 2 for the upcoming budget year are: upgrades and replacement ofe equipment and acquiring power 3 resources to stabilize the cost of power and increase "green" and carbon-free resources. The 4 details of these priorities were presented next by Mr. Pearce, Mr. Veigel and Mr. Farnes. 5 6 Mr. Pearce recognized that BCLP has had over 7 years of"no lost time" accidents (over 7 2,555 days) and this safety record has received recognition from the Intermountain Power 8 Superintendents Association and the American Public Power Association national award. He 9 said that the 5-year average system reliability rate is 999992%. Approximately 126 poles are 10 replaced each year. At this rate, it will take 20 years to replace the remainder of the poles 11 identified as rejects. These poles are approximately 50 years old and will not last 20 years. 12 13 Mr. Pearce showed the group an example of an underground bare concentric cable, 14 reviewed statistics for installation and replacement since 1970, and said that at the current 15 replacement rate, it will take 30+ years to replace the remaining bare concentric cable. The tree 16 trimming program has one in-house and two contract tree crews (currently in contract with 17 Diamond Tree Company). Based on a 5-year average, 4,476 trees are worked on each year. 18 19 Supply Chain is a critical component of maintenance on the system. Mr. Pearce 20 reviewed lead times for butt treated poles, transformers, switch cans, fuses, and ACSR wire 21 which ranged from to three months to 104 weeks, which makes it critical for supplies to be 22 closely managed and budgeted. Wire prices have increased 60% plus since 2021. Rubber 23 goods, terminations and connections have increased substantially in price. 24 25 Mr. Veigel reported that Capital Expenditures ($8,510,000) are up $3,060,000 and 26 includeM&E vehicles at $420,000. Feeders will be upgraded (including cable, conduit, 27 equipment and installation for #573), as follows: 28 Feeder #273: $160,000 29 Feeder #573: $700,000 30 Feeder #576: $100,000 31 Feeder #571: $130,000 32 Conduit, cable, and equipment is included for Renaissance Distribution ($500,000) and 33 $200,000 is included for Bountiful High, 400 South Main, Bolton Property, Renaissance Lot 34 11, and other miscellaneous expenditures. 35 36 Mr. Farnes presented the portion of Capital Expenditures associated with the Hydro 37 beginning upgrades for controls, ($1,150,000) and installation of a new flow meter. The total 38 cost for upgrades for these resources is estimated at $7 to 8 million. The Northwest substation 39 upgrade is $5,150,000 to upgrade the low bus which is a safety hazard, and funding for outdated 40 breakers and an aging transformer. 41 42 Mr. Hansen reviewed changes in fees as follows: Pole attachment fee increased from 43 $14 to $15; and a 10 percent increase on all customer fees based on personnel and equipment 44 costs, fees have not been adjusted in several years, and personnel costs have increased. 45 Page 2 of5 (PC minutes April 22, 2025) 1 Mr. Hansen then explained changes in the market resources (which are variable 2 expenses that only can be estimated), including the day-ahead market, (through UAMPS), coal, 3 natural gas (through IPP) and the plant. Allocation of these resources is weather-dependent and 4 based on past history. The average system cost for power in fiscal Year 2025-26 is $0.0698. 5 Solar rates are based on a proposed hybrid solar rate as follows. The current solar rate system 6 which is based on a work session and City Council approval on October 12, 2021, with the 7 following additions: (1)the current Net Metering buy back rate will become equal to the Hybrid 8 rate by July 2030; and (2) we will continue to keep the feed-in-tariff rates equal to current rates. 9 He said IPP repowering to natural gas is still scheduled to be online July 2025. San Juan will 10 no longer be an energy source, but we will pay our share of expenses to shut down the plant 11 ($193,200). Future power options are a UAMPS gas plant, solar with batteries, a geothermal 12 plant, and wind. With the resources currently used, it is proposed that the following rates are 13 proposed: 3% rate increase, 3% Feed-in-tariff: increase, Net Metering buy back rate reduced to 14 $0.07, and a 10% fee increase to connect, reconnect, temporary, and photovoltaic requests. 15 16 The balanced budget is based on Operating Revenue at $36,048,043 (up $1,343,261). 17 Operating Expenses are set as follows: Personnel Services, $6,511,135 (up $529,352); 18 Operations & Maintenance at $25,528,092 (up $682,362); Net Operating Transfers In (Out): a 19 transfer IN from Retained Use of Retained Earnings ($7,105,000) and a transfer OUT 20 ($3,164,831) to the General Fund. The 10-Year Capital Plan includes expenditures of 21 $45,410,000. 22 23 The staff recommends approval of the following proposed balanced budget of 24 $43,910,181 for FY 2026 which includes the following: 25 26 3% rate increase effective July 1, 2025 27 3% Feed-in-Tariff rate increase 28 10% increase to Fees 29 Solar Net Metering buy back rate reduced to $0.07 30 Annual Pole attachment increase from $14 to $15 31 32 Commissioner Irvine motioned to approve BCLP's Proposed FY 2026 as presented and 33 discussed above and send it to the City Council. Commissioner Pitcher seconded the motion 34 which passed unanimously with Commissioners Becker, Bell, Knight, Myers and Pitcher voting 35 "aye". 36 Councilwoman Child motioned that the Budget Committee make a recommendation to 37 the City Council to adopt the BCLP proposed FY 2026 budget as presented and recommended 38 by the Power Commission. Councilwoman Bradshaw seconded the motion and voting was 39 unanimous. Mayor Harris and Councilwomen Bradshaw and Child voted "aye". 40 41 The Budget Presentation concluded at 9:45 a.m. and the members ofthe Council Budget 42 Commission and the City Council and others, as desired, were excused. 43 44 The meeting reconvened at 9:50 45 46 MINUTES - APRIL 22, 2025 Page 3 of5 (PC minutes April 22, 2025) 1 Minutes of the meeting of the Bountiful Power Commission held April 22, 2025, were 2 presented and approved as written. Councilman Irvine made the motion to approve, and 3 Commissioner Irvine seconded the motion. Commissioners Becker, Bell, Knight, Irvine, Myers 4 and Pitcher voted "aye"; Commissioner Myers abstained from voting. 5 6 BUDGET REPORT - YEAR TO DATE8 MONTH PERIOD 7 Mr. Hansen presented the Budget Report for the Year to Date 8-Month period ended 8 February 28, 2025. Total Revenues YTD were $26,122,300, above the HAB by $1,815,158. 9 The major items above budget were: Electric Metered Sales at $1,283,273, 6.1% above its 10 HAB; Air Products income, $66,071 was above its HAB with an average load factor of 66.7%; 11 Sundry Revenues were $153,694above budget and Interest Income on Investments was above 12 its HAB by $305,084. Contribution in Aid to Construction was $(21,113), below its HAB. 13 14 Total Operating Expenses YTD were $20,882,349, below the HAB by $569,233. Power 15 Cost Expense was below its HAB at $474,178 (Power Generation was under $270,000 and 16 Power Resources Cost was under $203,000). Other operating expenses that were below the 17 HAB were Distribution Expense at $204,902; Transformer Expense at $81,505, Street Light 18 Expense at $64,529,and Substation Expense at $106,983. Operating Expenses that were above 19 the HAB were Hydro Transmission Expense at $(639,388) and the Transfer to the General Fund 20 Expense at $(47,754). 21 22 Total Capital Expenditures YTD were $1,674,557, which included $41,000 at 400 South 23 Main, $15,000 for Renaissance Lot 11,$154,000 for Feeder 572/574 tie, $138,000 for Vehicles, 24 and $1,200,000 for the Northwest Substation. 25 26 Total Labor and Benefits was $3,381,326. As of 15 February, the last pay period paid 27 in the YTD period), 63% or $3,769,343 could have been spent; the actual TL&B was $388,017 28 below that target. 29 30 The Net Margin for the YTD was $3,565,394, as revenues are above budget and power 31 costs are coming in under budget. 32 33 Total cash and equivalents were a net $25,541,625 at month end, up $2,481,252 from 34 $23,060,363 at 30 June 2024, and $9,367,625 above the $16,174,000 total reserved cash 35 requirement. Major sources and (uses) of cash at month end compared to fiscal year-end 2024 36 included the $905,728 decrease in total accounts receivable; increase of $(986,214) in total 37 inventories; decrease in total accounts payable $(184,067); $(123,562) decrease in Accrued 38 benefits and payroll; and the $(646,917) decrease in other equity (excluding the net margin). 39 Following a brief discussion, Commissioner Pitcher made a motion to accept the budget report 40 as presented, and Commissioner Bell seconded the motion which passed unanimously. 41 Commissioners Becker, Bell, Irvine, Myers and Pitcher and Councilwoman Price-Huish voted 42 "aye". 43 44 RESOURCE UPDATE 45 Mr. Johnson noted that the majority of items to be discussed regarding resources were 46 discussed during the Budget Presentation. He said that UAMPS is still looking at the Idaho Page 4 of5 (PC minutes. April 22, 2025) 1 resource, but the interconnection and transmission issues are not resolved. Both IPP projects 2 are moving forward, with several issues still not complete. 3 4 The following items were included in the packet but not discussed in the meeting. 5 6 POWER SYSTEM OPERATION REPORT 7 a. February 2025 Resource Reports 8 b. March 2025 Lost Time/Safety Reports 9 C. February 2025 Public Relation Reports 10 d. 2025 Outage Reports 11 12 OTHER BUSINESS 13 None 14 15 NEXT MEETING 16 The next meeting will be held May 27, 2025, at 8:00 a.m. 17 18 ADJOURN 19 The meeting adjourned at 10.00 a.m. with a motion made and seconded by 20 Commissioners Bell and Pitcher, respectively. Voting was unanimous with Commissioners 21 Becker, Bell, Knight, Myers and Pitcher, voting "aye". 22 23 24 25 R E Beche 26 Susan Becker, Chairman Page 5 of5