CORDOVA ELECTRIC COOPERATIVE, INC.
REGULAR BOARD MEETING
June 26, 2019
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, Cooper, Faulkner, Srb, Johnson and Ranney. Also present were CEO Koplin, Manager of Administration and Finance Merritt, Manager of Generation and Distribution Newlun, Executive Assistant/HR Bailer (Recorder), and Project and Technology Coordinator Kuntz.
APPROVAL OF AGENDA
Cooper moved and Srb seconded to approve the agenda as presented. Voice vote: Unanimous. Motion carried.
Cooper moved and Srb seconded to approve the consent agenda that includes the following:
- Minutes of May 22, 2019 Board Meeting
- Estate Payments
Cook asked to pull the Estate Payments. Pegau removed the Estate Payments from the Consent Agenda and added it to the Agenda under New Business, item (b).
Voice vote: Unanimous. Motion carried.
CEO Written Report
CEO Travel: I was in Washington, D.C. this week for an Electricity Advisory Committee meeting. The CEC Battery Energy Storage project was of very high interest and I have been asked to present to the committee at our next regular (October 16, 18). I will be taking a personal vacation long weekend July 3-9 for my niece’s visit, and personal leave again August 4-19 for personal vacation.
Crater Lake Update and Go/No Go: I plan to present this in July or August after reconciliation of costs and scope completed to date, alternatives, and staff recommendations for board consideration.
CTC Collaboration: I am reviewing a draft contract with CTC for fiber optic and communication infrastructure that I may bring to the July board meeting for consideration.
Interest Rates: Careful management of CEC’s debt portfolio has been one of our most successful programs as we continue to carefully monitor market movements and rate structures, and our rates are coming in well below budget and continued to drop every week this month.
RADIANCE Update: The Battery Energy Storage System (BESS) has been consuming most of our efforts, with moderate effort into RADIANCE projects like advanced metering infrastructure, cybersecurity implementation, and building the CEC digital blueprint as time allows.
Battery Electric Energy Storage (BESS) Project Update:
The equipment is installed in place, but there are still controls and communications work that need completion before the system is manually operable. There will be a second on-site commissioning effort to address these items in the coming weeks.
Power Creek Road Repairs: Wilson Construction was awarded the job and will soon begin work.
Tariff Revisions: We hope to prepare the billing error revisions for public hearing and adoption in July or August. Other work efforts continue to compete for time.
Power Quality Report: CEC Policy requires the CEO to report any Power Quality issues in the CEC system. It will likely be July before I can prepare a summary of time error problems. Corrective upgrades should wait until late 2019 or 2020 or as opportunity offers.
CoBank Loan: The $4,000,000 CoBank construction loan for 2018 – 2021 capital projects is a low-cost, flexible loan package structured to provide flexibility for financing capital repairs and construction of new long-life assets that can be spread across the membership base that benefits from them. We anticipate approximately $1,000,000 through 2019 projects. The 2020 and 2021 projects will come forward as we complete this year’s projects and prioritize projects to meet strategic goals.
Pacific Northwest National Laboratory (PNNL) Contract: Work on the CEC-PNNL contract can commence as of July 1. I have a teleconference with PNNL next week to develop a work plan.
Larsen Energy Customer Survey and Brand Audit: I stopped work on this project and am getting a summary report for the work completed to date.
Orca Boiler Update: The boiler and materials have been ordered. EPS will be scheduled to do the installation and work when the boiler materials arrive later this summer. The RADIANCE project is paying for this.
CEO Verbal Report
Discussion regarding the thrust block and CoBank loan.
GENERATION & DISTRIBUTION REPORT
Discussion regarding the Battery Energy Storage Project and Power Creek dam replacement project.
Merritt reviewed the following reports and answered questions.
- Financial Reports 5/31/19 – Handout
- Revenue Report for May
- Cash Flow Analysis for May
- Cash Disbursements for May
- Purchase Order Report
- Generation and Sales Statistics
Director Cook stepped out of the meeting at 6:30 p.m.
CoBank Construction Loan – Resolution 19-01 – Johnson moved and Srb seconded to approve Resolution 19-01 for approval of a $4,000,000.00 Multiple Term Loan #22020116T09 from CoBank, ACB. Discussion.
Cook returned to the meeting at 6:45 p.m.
Faulkner moved and Cooper seconded to postpone the CoBank Construction Loan – Resolution 19-01 to the regular August Board meeting, seconded by Cooper. Voice vote to postpone the CoBank Construction Loan – Resolution 19-01 to the regular August Board meeting. 4 yea – 3 nay (Cook, Ranney, Srb). Motion carried.
Estate Payments – Cook asked who Windsinger Café is and was told it was a business owned by Ronnegard. Johnson moved and Srb seconded to approve the Estate Retirement as presented. Voice vote: Unanimous. Motion carried.
Rate Analysis – A discussion ensued regarding the rate analysis as was presented at the April meeting. Johnson moved and Ranney seconded to adopt staff’s recommendation for no rate increase this year. 5 yea – 2 nay. (Cook, Pegau). Motion carried.
Board requested a rate analysis prior to the budgeting cycle.
Policy 63A – Conflict of Interest – Pegau gave Directors the Conflict of Interest form to complete for 2019.
Policy 31A – Member Education and Public Relations – Srb will review the Policy and make recommended changes.
Alaska Power Association Annual Meeting – Juneau – August 20-23, 2019 – Pegau and Cook expressed interest in attending the meeting. Faulkner moved and Johnson seconded to approve attendance of two Directors to the Alaska Power Association Annual Meeting in Juneau in August 2019. Voice vote: Unanimous. Motion carried.
- Policy #33C – Assistance to Other Entities – Noted
- Policy #34C – Changes in Tariff Rates, Rules and Regulations – Noted
EXECUTIVE SESSION – None
- Review Board Evaluation Quarterly (January/April/July/October)
BOARD PENDING EVENTS CALENDAR
Board asked to move the review of the Equity Management Plan to September.
SUMMARY OF BOARD DIRECTION TO CEO
- Rate Analysis prior to the next budgeting cycle.
- Equity Management Plan review on July Agenda with staff input
- July agenda addition – Board training
- CEC headquarters building update at each meeting.
- CFC Strategic Planning Training information for July agenda
- CoBank Construction Loan information in July agenda
Cook – Board seems to be slipping, gets quagmired.
Johnson – Appreciates staff’s work and being open to requests.
Srb – Thanked everyone for their work
Faulkner – Thanked Board and said everyone came prepared and informed. Conversations have been thoughtful and meaningful; each director has an opportunity to express their feelings. Staff is good about supporting Board meetings and having information. Faulkner appreciates staff’s tolerance in dealing with the Board. Faulkner said she will not be at the July Board meeting.
Cooper – no comment
Ranney – no comment
Pegau – Appreciates everyone’s patience.
Johnson moved and Cook seconded to adjourn at 8:10 p.m.
Date Approved Secretary/Treasurer