CORDOVA ELECTRIC COOPERATIVE, INC.
REGULAR BOARD MEETING
April 25, 2018
The Regular Meeting of the Board of Directors of Cordova Electric Cooperative, Inc. was called to order at 6:00 p.m. by Chairman Pegau. Members present were Cook, Faulkner, Cooper, Phillips, Srb and Johnson. Also present were CEO Koplin, Manager of Generation & Distribution Newlun, Executive Assistant/HR Coordinator Bailer (Recorder), and Project & Technology Coordinator Kuntz.
Alan Lanning, Cordova City Manager, spoke to the Board regarding the City’s commitment to the Crater Lake project, saying Crater Lake is a priority and that the City Council is committed to the project. Lanning mentioned City funding in the amount of $100,000 for the Crater Lake project is included on the May 16, 2018 City Council agenda.
APPROVAL OF AGENDA
Faulkner moved and Cooper seconded to approve the agenda as presented
Voice vote: Unanimous. Motion carried.
It was moved by Cooper and seconded by Phillips to approve the consent agenda that includes the following:
- a) Minutes of March 28, 2018 Board Meeting
- b) Approve New Members – 1/19/18 – 3/31/18
- c) Patronage Capital Estate Retirement
- d) Board Travel expenses
Voice vote: Unanimous. Motion carried.
CEO Written Report
Human Resources: Two interns have been hired to assist CEC through the summer; Henry Toal of Anchorage, an engineering student at University of Wisconsin with a strong interest in energy storage, will be assisting with the implementation of battery energy storage, RADIANCE project tasks, and other assignments. The NRECA will be sponsoring half of his wages in cooperation with CEC. Riley Troyer, a graduating physicist at University of Alaska, Fairbanks, will be assisting with RADIANCE project tasks, the solar siting evaluation with the Eyak Preservation Council, and a newly initiated evaluation of larger scale solar penetration by Lawrence Berkeley National Laboratory, who has modelled the CEC distribution system and will evaluate larger-scale (hundreds of kW of capacity) solar installation at the State airport area.
On May 14 we will welcome Savannah Webber to CEC as the new Staking Tech/Warehouseman where she will have a month to overlap with Shannon Howard for training.
Electric Power Systems has been providing engineering and technical support for multiple CEC maintenance projects, work plan goals, and RADIANCE project tasks and implementation.
Director Orientation: Was conducted on April 6th with Board members Kara Johnson and Dede Srb with staff Koplin and Bailer. Management, Governance, Financials, and CEC Goals were discussed.
Interest Rates: Short term interest rates are now at 3.65% and leave a very narrow band with 20 year rates at 4.96%. 70% of our portfolio is now fixed.
RADIANCE Project: Much of this week was devoted to the RADIANCE Technical Interchange Meeting (TIM) in Cordova. We reviewed this year’s tasks, progress to date, risks for completion and product quality, and key tasks over the coming weeks.
EES Project Last week at the Rural Energy Conference in Fairbanks, I was able to meet with key SAFT and ABB technical staff and discuss the details of the Electric Energy Storage (EES) system bid to Cordova and answer key technical questions to aid in the final choice of battery chemistry and storage capacity. Purchase of the medium class battery option with a fully occupied container of batteries is recommended for approval on this agenda.
Monthly Financials: Emma has added another citizen, Tyson Jay to the Cordova family.
Member Engagement: We have loaned the Nissan Leaf to members and the response has been very positive. On April 12th a tour of the Orca Diesel Power plant was conducted for high school students.
Other work in progress: CEC HQ building plan, tariff consolidation for net metering, and other projects are on hold as we make progress on construction and project work.
Bill Thomas and Kallander & Associates Updates: Board meeting handouts.
Generation and Operations Reports:
ORCA Power Plant
- Working on scope of project and deliverables from EPS on ORCA boiler upgrade.
- One of the CAT fails and shuts down, we troubleshoot and find that a voltage potentiometer has failed and replace it with help of EPS. This saved a trip to town by EPS Tech.
- Work on day tank design for CAT’s and new fuel system.
- Move old day tank and start building new fuel metering system for CAT Van.
- Order inventory parts for Unit 7 that were replaced last year.
- Submit ADEC Triennial source report.
- Repaired the Zetron alarm callout system
- CPR/First aid training
- Plant tour for one of our Board members and school children.
- Outage caused by Communication device failure.
Power Creek Hydro Plant
- Contact Gilkes for recommendations on turbine maintenance issues.
- Working on TIV seals and parts from Dezurik.
- Change some of the filters on the hydraulic system at the plant. TIV leaks are more aggressive.
- EPS is updating camera software.
- Had local welder weld cylinder liner on unit 4.
- Located a shop that specializes in FM repairs and got quotes for inspection.
- Lined up materials for Dam repair.
- Re-scheduled penstock inspection due to avalanche risk.
Humpback Creek Hydro Plant
- Downloaded micro PMU data for INL.
CEC Fleet Vehicles
- Worked on Backhoe, line truck, portable generator, and reel trailer.
- Light fixtures at Illanka have been repaired and replaced.
- Boiler system has been repaired.
- New meter readers trained at office for March reads.
- Warehouseman’s last day of work is June 14th.
- Advertised, Interviewed, and awarded new Staking Technician/ Warehouseman position.
- Started work with EPS on substation and BESS layout/design.
- Apprentice is making good progress at Line school, done next week.
- Work on estimate for new service at 6.5 mile.
- Transformer change out at Eyak Lake water plant (failure)
- CPR/First aid training
- Proceeding with metering monitoring project at Trident.
- Agreement with DOT to relocate street light at CRH/High School for further upgrade.
- Work at the alley is progressing.
CEO Travel: On February 26th – February 28th, Craig Kuntz and I attend the National Rural Electric Cooperative Association (NRECA) Tech Advantage in Nashville, TN. The primary purpose was to meet with Professional Computer Systems (PCS) and several prospective enterprise software companies to streamline and automate our staking, mapping, estimating, and other work order processes. We also had those vendors meet with each other to make preliminary assessments of the complexity of integrating with our billing software platform (PCS). We also met with Itron/Silver Stream Networks and Advanced Metering Infrastructure (AMI) vendors to evaluate mesh communications. The outcomes were a clear and strong preference for Meridio staking/mapping software, and a six month hiatus on consideration of AMI. We also met with NRECA technical staff from their business and technology strategy (BTS) group and got a commitment to fund 50% of a summer intern for CEC. The BTS group has become a strong partner and advisory asset to CEC through the RADIANCE project work, especially in the areas of right-sizing for a small cooperative, cybersecurity, and best practices.
We also discovered that we may be able to share Golden Valley Electric Association’s (GVEA) site license for Silver Spring mesh network at a savings of nearly $1,000,000.
On March 5-14, I travelled to Washington, DC at the invitation and travel expense of the Union of Concerned Scientists (UCS) to participate in a policy forming work group around energy storage on March 8th. The meeting exposed me to experts in battery energy storage and other storage technologies. That evening I met with Gwen Holdmann of ACEP to discuss various projects and opportunities for CEC/ACEP. On March 7th I toured the Whitehouse with Senator Sullivan’s interns, met with staff in Senator Murkowski’s office and the Senate Energy and Natural Resources Committee and with Senator Murkowski later in the day, and attended the conference dinner with the UCS energy storage participants. On March 8th I attended the UCS conference except for a quick break in the afternoon to meet with Senator Dan Sullivan. On Friday, March 9th, I met with the US Coast Guard to discuss fast cutter deployment in Cordova and their general needs in Cordova for energy support. I met with staff in Congressman Don Young’s office in the afternoon. I spent a good portion of Friday evening, Saturday, and Sunday with Rob Hovsapian, the Principal Investigator (PI) or Project Manager for the RADIANCE project, partly to cover project work, and partly to prepare for Department of Energy (DOE) meetings on Monday and Tuesday. Those meetings included scheduled meetings with the Principal Deputy Assistant Secretary of the Office of Energy Efficiency and Renewable Energy Daniel Simmons on Monday. Rob had worked in the DOE offices in Washington, D.C. for several years, and we had several impromptu meetings all through the building throughout the morning and afternoon. We also stopped by the offices of Oak Ridge National Laboratory. That evening we met with the Office of Naval Research (ONR). On Tuesday we met with DOE Waterpower and Technology Program Office (WPTO) director Tim Welch, Deputy Director Alejandro Moreno, and staff. They indicated willingness to participate in Crater Lake elements if they aligned with WPTO RADIANCE project goals. On Tuesday Rob and I met with NRECA BTS staff to discuss RADIANCE, CEC internship, and other combined goals. The positive outcomes were potential partnership on Crater Lake, deeper understanding of commercial and technical aspects of battery storage, a stronger NRECA partnership and details of a funded internship, high-level DOE advocacy and support for CEC work, and an expanded network.
Last week I attended the Rural Energy Conference in Fairbanks, Alaska, with Kevin Kimber. Throughout the conference there was a lot of interest in CEC’s lube oil testing program, which is saving CEC nearly $10,000 in oil changes per year. As the CEC expert, Kevin was able to share our program, and attend the sessions on diesel maintenance and operation, energy storage, renewables for heat, heat pumps for Alaska, energy project management, and energy from water. I presented at the opening session on Energy Innovation and Deployment and the closing session on energy from water. I attended sessions on getting the most out of Power Cost Equalization (PCE), paying for projects with loans, efficiency first, getting useful data, and all of the opening, lunch, and closing sessions. I spent significant time with SAFT and ABB getting a deeper appreciation for the limitations and capabilities of a SAFT/ABB battery energy storage package. I also spent several hours Thursday evening reviewing and refining a Lawrence Berkeley National Laboratory model they had developed over the past two years (I had forgotten about the work) that was approaching a deadline, several meetings with ACEP staff and general networking with conference attendees including the new Alaska Energy Authority (AEA) director and staff, and Governor Walker and administration staff. It was a very successful conference in that ACEP agreed to fully fund one of our two summer interns, I finalized the specs on the ABB/SAFT package after discussing with the vendors, got an LBNL for large scale solar modelling and battery energy storage feedback, and a commitment from the new AEA director to visit Cordova soon with key staff.
CEO Verbal Report
Koplin went through a power point that included CEC’s Strategic Plan with the Ten-Year Goal (2025) highlighting it is CEC’s vision to have 90% of the electricity for Cordova be provided with renewable energy by 2025 and reduce diesel use 50% by 2025. He reviewed the Battery Energy Storage, Crater Lake Energy Storage, and solar. At this time Koplin also mentioned and explained the items listed under New Business, including an increase in the amount of the Battery Electric Energy Storage Award amount to $1,400,000.
Koplin reviewed the following reports:
- Revenue Report for March
- Cash Flow Analysis for March
- Bankcard Services Summary of Charge Statement for 2/17/18
- Generation and Sales Statistics
Election of Officers – Pegau opened nominations for Board Chair and said any member may nominate another Board member for office. Faulkner nominated Pegau, who said he is willing to serve as Chair. Pegau asked if there were additional nominations. There were none.
Faulkner nominated Cook for Vice Chair. Cook said he was willing to run for this position. There were no further nominations.
Faulkner nominated Cooper for Secretary/Treasurer. Cooper said she is willing to run for this position. There were no further nominations.
Faulkner moved to close the nominations and approve the officers as nominated, Pegau for Chair, Cook for Vice Chair, and Cooper for Secretary/Treasurer, seconded by Phillips. Voice vote: Unanimous. Motion carried.
Appoint Bylaw Committee – Pegau appointed Cook, Faulkner and Cooper to the Bylaw Committee. Upon consultation, the officers elected Cook as Chair of the Bylaw Committee.
Appoint Board of Adjustments – Pegau appointed Phillips, Srb and Johnson to the Board of Adjustments.
Policy 35J – Management Wage and Salary Plan – Johnson moved and Phillips seconded to approve Policy 34J – Management Wage and Salary Plan, as presented. Koplin mentioned the Policy was updated to state the change in insurance carrier. Discussion. Voice vote: Unanimous. Motion carried.
Purchase Order #2052 to OMP Engineering Inc. for $15,000 – Phillips moved and Cook seconded to approve Purchase Order #2052 to OMP Engineering Inc. for $15,000. Discussion. Voice vote: Unanimous. Motion carried.
Purchase Order #2054 to Farabee Mechanical Inc. for $12,464.58 – Phillips moved and Cooper seconded to approve Purchase Order #2054 to Farabee Mechanical Inc. for $12,464.58. Discussion. Voice vote: Unanimous. Motion carried.
Battery Electric Energy Storage Award for $1,400,000 – Phillips moved and Srb seconded to approve the purchase of a SAFT/ABB battery energy storage system for a CEC cost not to exceed the amount of $1,400,000. Voice vote: Unanimous. Motion carried.
Question on when the storage system will get to Cordova. Koplin said it should be here during the second quarter of 2019.
Crater Lake Geotechnical Assessment – Johnson moved and Srb seconded to approve the Crater Lake Geotechnical Assessment for a not to exceed amount of $350,000. Discussion. Voice vote: 6-yea, 1-nay (Cooper). Motion carried.
CEO Travel – noted
Alaska Power Association Annual Meeting – Fairbanks, August 22-24, 2018 – Faulkner moved and Phillips seconded to allow three (3) Board Directors attend the Alaska Power Association Annual Meeting in Fairbanks in August 2018. Discussion on who will attend. Cook, APA Board member and CEC representative, said he would be attending. Voice vote: Unanimous. Motion carried.
Pegau asked Directors to check their schedules and any that are able and willing to attend should announce it at the May Board meeting.
- Policy #4B – Board Committees
- Policy #5C – Conflict of Interest (was replaced with Policy #63)
Upon request from the Chair, Conflict of Interest Forms were distributed to Directors to complete and return at or before the May Board meeting.
Upon Board consent Executive Session was moved to the last item on the Agenda.
Cooper asked for Board training to be held in Cordova so all Directors could attend, similar to the training conducted in the fall of 2017. Discussion. This item will be added to the May Board Agenda.
- Nominating Committee Process for New Directors
- Board training conducted by attorney in second quarter of every year. Scheduled for April 19, 2018. Postponed to a future date.
BOARD PENDING EVENTS CALENDAR – noted
SUMMARY OF BOARD DIRECTION TO CEO
- Update list of acronyms
- Provide Board the monthly updates from Kallander & Associates and Raven’s Walk
- Email tonight’s power point to the Board and add to the Dropbox
Faulkner – Lots of good information. Welcome to new Board members. Thank you to staff.
Srb – Thanks everyone. This is my first meeting and I’m learning.
Johnson – Thanks everyone. Looking forward to learning more.
Cook – Welcomed new Directors.
Phillips – Welcomed new Directors and thanked staff.
Cooper – Welcomed new Directors. She is excited CEC is now using the Go To Meeting program for traveling Directors to participate in Board meetings. Thank you to the Board and Staff.
Pegau – Welcomed new Directors saying he is looking forward to working with them. Pegau recommended they review the Crater Lake Feasibility Study.
CEO Evaluation – Cooper moved and Phillips seconded to go into executive session at 7:52 p.m. to discuss subjects that tend to prejudice the reputation and character of a person; however, the person may request a public discussion. Staff was excused except for CEO Koplin.
Board came out of executive session at 8:22 p.m. The Board conducted the CEO Evaluation and no action was taken.
Board moved to adjourn at 8:28 p.m.
Date Approved Secretary/Treasurer