Cordova Electric Cooperative

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Cordova Electric Cooperative

June 2020

CORDOVA ELECTRIC COOPERATIVE, INC.

BOARD MEETING

June 24, 2020

Final

CORDOVA ELECTRIC COOPERATIVE, INC.

BOARD MEETING

June 24, 2020

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. Due to the COVID-19 pandemic Directors and staff have the option of participating via gotomeeting. Director Phillips was present. Director’s Beedle, Cook, Cooper, Campbell, Ranney and Pegau participated via gotomeeting. CEO Koplin and Executive Assistant/HR Bailer (Recorder) were also present. Manager of Administration and Finance Merritt, Manager of Production and Distribution Newlun, and Project and Technology Manager Kuntz participated via gotomeeting.

MEMBERSHIP PARTICIPATION

Paul Trumblee was present but had no comments.

APPROVAL OF AGENDA

Phillips moved and Campbell seconded to approve the Agenda as presented. Roll call vote: Unanimous. Motion carried.

CONSENT AGENDA

Phillips moved and Ranney seconded to approve the consent agenda that includes the following:

  1. a) Minutes of Meeting of May 27, 2020

Roll call vote: Unanimous. Motion carried.

MANAGEMENT REPORTS

CEO REPORT

CEO Written Report

CEC Feed-In Tariff: One high priority for 2020 is to develop a feed-in policy and/or tariff for independent power producers, CEC customers, or CEC partners to deliver energy onto our grid. We should start with the policy and vision of the Board, then staff can draft operational policies and/or a tariff to support it. I may have a handout available before or during the meeting with some high-level considerations or samples from other Cooperatives.

Elevator Removal: We finally received a report on the condition of the elevator in the Illanka Clinic side of the building which indicates a safety hazard to tenants due to the advanced decay of portions of the roof and shaft walls. CEC Staff is reviewing the budget and preparing a request for proposals for repairs while working with NVE to mitigate hazards and assess opportunities to collaborate on the repair. I anticipate being ready for an action item for the July regular meeting.

Electrify Alaska Conference (July): We have met with our conference coordinator and discussed the “Electrify Alaska” conference to be hosted in Cordova that was postponed from April. We are currently considering a November 2-4 on-site conference and will make a final decision in July.

Hydro Kinetic Grant Overview: I provided this in the last CEC Board packet and worked on it this month – the team consensus is that we move forward with an application. The biggest hurdle currently is the permitting process for installing a turbine in waters of the U.S. CEC will be reimbursed for staff time and line extensions to the generator, and development of a feed-in tariff outlined above will guide any future connection to the CEC grid.

Solar Grant Update: CEC was notified by Sandia National Laboratories last wpeek to participate in a grant proposal for developing cyber-secure solar installations. With the offer of reimbursing CEC time and discounts from participating inverter vendors, this may be the path for installing a 500-kW plant at better pricing than Arctic Engineering Consultant’s solar study targets. There is currently a Tribal Energy Grant call for installing renewable energy on tribal lands that could be paired with this project to reduce or eliminate lease costs in exchange for extending power to the airport area where we have several potential customers for CEC connection. That application is due July 30th. The current proposal was submitted last week and will be emailed to the Board for your information.

CEO pandemic-related work time: I am now averaging about 2 hours per day of my time on pandemic items for the City of Cordova, much of which I am now conducting outside normal work hours where it will not conflict with CEC work. Thank you for your support over the last couple of months.

Power Creek Dam Replacement: We are done with our avalanche season and are considering options for the timing for replacement of our worn-out dam.

BESS Update: The battery continues to perform well and keep us at or near 100% hydro.

Orca Boiler Update: The new electric boiler is operating on excess hydro.

Payroll Protection Program Loan. The PPP loan program has published the forgiveness application, and we are filling it out as we pay our eligible expenses. So far eligible expenses have been as expected which will ultimately qualify CEC for the maximum amount of forgiveness.

CEO Travel: None until further notice.

Operations Update: In addition to making progress on projects such as electric boiler installation and operation, Power Creek Unit 5 bearings and valves, and geographic location of all CEC meters in the system for an Advanced Metering Infrastructure (AMI) upgrade, significant regular maintenance has been completed in the April and May timeframe, including:

  • Extensive vehicle, heavy equipment, and light tool maintenance for construction season
  • Replacement of filters, wiring checks, fire system maintenance at hydro and diesel plants
  • Significant diesel generator maintenance including Unit 3 EMD exhaust system repairs
  • Final high-resolution fuel meter installations, fuel line pressure checks, fuel system upgrade
  • Significant SCADA system maintenance work on sensors, programs, alarms, meters
  • Inventory counts and procurement of key replacement parts and materials
  • Approximately 25% of the reimbursable utility relocation for the DOT, Fleming Spit Deep Culvert replacement job is completed
  • Several new services have been installed
  • Danger trees at the PC intake road have been cleared
  • Extensive hydraulic maintenance work on Power Creek Units H-4 and H-5 have been performed
  • Improved communications through near-companywide daily 7am briefings

CEO Verbal Report

Upon question Koplin explained more about the CEC Feed-In Tariff and gave examples. Director suggested having a work session on renewables and Board agreed to include Strategic Planning for renewables on the July Agenda. Discussion ensued regarding the Payroll Protection Loan, the amount of the loan, and how it will be used.

Administrative Reports

Merritt reviewed the following reports:

  • Financial Report for 5/31/2020
  • Revenue Report for May
  • Historical Revenue Breakdown – Supplement
  • Cash Flow Report for May
  • Debt Summary
  • Cash Disbursements for May
  • Purchase Order Report
  • Generation & Sales Statistics

Upon question Merritt said the delinquency summary was consistent with prior years.

NEW BUSINESS

CoBank Sharing Success Program Application Submittals – Phillips declared a conflict of interest and recused himself. Pegau said one application was received from the Cordova Volunteer Fire Department EMS (CFD) and asked Paul Trumblee if he would like to address the Board regarding his application. Trumblee showed the Board the personal protective gear for the EMS (CFD) volunteers and explained how the money will be used to purchase updated gear. Trumblee said all members of the Fire Department are volunteers, local residents, and members of Cordova Electric Cooperative.

Beedle moved and Pegau seconded to fund the Cordova Volunteer Fire Department request in the amount of $20,000 with $10,000 from the CoBank Sharing Success Program and matching $10,000 from Cordova Electric Cooperative. Upon question Cooper read from the CoBank Sharing Success website where it states the grant has been used for groups such as volunteer fire departments. Voice vote: Unanimous (Phillips recused himself from the vote). Motion carried.

UNFINISHED BUSINESS

Policy 63B- Conflict of Interest – Phillips moved and Cooper seconded to adopt Policy 63B as presnted. Phillips said he read through the Policy and staff included what the Board asked for. Cooper agreed. Voice vote: Unanimous. Motion carried.

INFORMATION ITEMS

CEO Travel – noted

Board Attendance at Regular Meetings – noted

OTHER ITEMS

Policy Review:

  • Policy #58 – Exempt Employee Practices
  • Policy #59B – Director’s Training – discussion on Credentialed Cooperative Director’s Training and past in-house Board training
  • Policy 61A – Identity Theft Prevention Program

EXECUTIVE SESSION – none needed

PENDING AGENDA

  • Review Board Evaluation Quarterly (January/April/July/October)

SUMMARY OF BOARD DIRECTION TO CEO

  • Circulate to the Board:
  • High level feasibility study on Raging Creek
  • McMillan proposal letter for Raging Creek
  • Policy and Tariff Feed-in information
  • Find options for Director CCD training
  • Add Strategic Planning for renewables on July Agenda

BOARD PENDING EVENTS CALENDAR

Noted

BOARD COMMENTS

Beedle – Glad to see an applicant for the CoBank Sharing Success program. Thanks for everyone’s time and effort for the meeting.

Phillips – Thank you to Koplin and staff for a great meeting.

Ranney – Thanks everyone.

Campbell – Thanks all.

Cook – Thanks to everyone.

Cooper – Good meeting – thank you. Thanks to Merritt for keeping on top of the finances and Payroll Protection Program. I appreciate Merritt’s work efforts and ability to keep on top of things in this changing landscape.

Pegau – It’s good to see more about the Payroll Protection Program Loan and how it is used. Good meeting.

Phillips moved and Ranney seconded to adjourn at 7:15 p.m.

Date Approved Secretary/Treasurer

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