CORDOVA ELECTRIC COOPERATIVE, INC.
REGULAR BOARD MEETING
March 27, 2019
The Regular Meeting of the Board of Directors of Cordova Electric Cooperative, Inc. was called to order at 6:05 p.m. by Chairman Pegau. Members present were Cook, Cooper, Faulkner, Phillips, and Johnson. Director Srb was absent. Also present were CEO Koplin and Executive Assistant/HR Bailer (Recorder).
Steve Ranney was present and had no comments.
APPROVAL OF AGENDA
Cooper moved and Cook seconded to approve the agenda as amended to move the Certification of Election Results after the Approval of the Agenda, and to move Executive Session after Board Comments. Voice vote: Unanimous. Motion carried.
CERTIFICATION OF ELECTION RESULTS
Pegau said the Director Candidate votes were tallied after the Annual Meeting on March 25, 20198 and the results were:
Steve Ranney 219
Alexis Cooper 180
Stephen Phillips 134
Pegau moved and Faulkner seconded to certify the election results correct as stated. Voice vote: Unanimous. Motion carried.
Phillips thanked the Board and staff and said he’d be back. The Board thanked Phillips for his time as a Director, welcomed Ranney to the Board, and welcomed Cooper back to the Board.
Faulkner moved and Cook seconded to approve the consent agenda that includes the following:
a) Minutes of February 27, 2019 Board Meeting
b) Estate Payments
Voice vote: Unanimous. Motion carried.
CEO Written Report
CEO Travel: I will be attending the National Hydropower Association’s Waterpower Week in Washington, DC April 1-3 at the request of Alejandro Moreno, the Director of the Waterpower and Technology Office (WPTO) of the Office of the Department of Energy’s Department of Energy Efficiency and Renewable Energy (EERE). The WPTO is funding half of the RADIANCE project and I will be meeting with Alejandro and WPTO staff to discuss some new perspectives on Crater Lake and hydropower pumped energy storage and opportunities to partner. I will also use this as an opportunity to meet with our congressional delegation if they are available. I may also travel to Juneau toward the end of the month for CEC and/or City of Cordova (personal leave) business depending upon the progress of the legislature and opportunity landscape. I have no further travel or vacation scheduled until the June Electricity Advisory Committee meeting in Washington, D.C.
Crater Lake Update and Go/No Go: We have not received our final geotechnical report on Crater Lake so I will not be presenting a Go/No Go format for the Board until we have all of the necessary information. However, there are some high-level changes and reminders worth considering by new and returning CEC Board members, and I will be sharing these with the membership at the Annual Meeting:
- Hydropower has a low life cycle operating cost and is an area of expertise for CEC
- Crater Lake can store both renewable energy and water resources to support winter economy
- Stored hydropower complements run of river hydro, solar, wind, tidal, and other renewables
- The agency permits required to develop Crater Lake are few and inexpensive
- Crater Lake would store 2,000 time as much energy as a grid scale battery (2,000,000 kWh)
- The project location and design protect it from catastrophic earthquakes, tsunamis, and avalanches and can provide emergency water and energy resources
- Crater Lake would help replace aging diesel engines with reliable power
- Crater Lake could pave the way to 100% renewable energy by 2025
- Tribal and other grants may be available to design and/or develop Crater Lake
- The addition of pumped storage could increase the amount of energy and water
- The project can prevent lake flooding that occurs every 20-30 years
- There are community concerns about safety, aesthetics, and the cost of the project
CTC Collaboration: I have met with CTC’s Manager on a variety of opportunities and business concerns including the shared ownership and operation of CEC/CTC fiber optic lines, shared facility space on Main Street and existing facilities, customer service documents and communications, construction of distribution systems, and tariff revisions. I have expressed interest in sharing space occupancy of the old Cordova House restaurant and hotel but have not made any binding commitments.
Interest Rates: These have remained stable and the forecast is for no increase this year.
RADIANCE Update: We are working on detailed modelling, data management, and the digital blueprinting at Idaho National Laboratory (INL). The next technical interchange meeting is scheduled for May 9th and 10th in Cordova.
Battery Electric Energy Storage (BESS) Project Update: Steel pilings, construction materials, and electrical equipment have been ordered. The project team is teleconferencing weekly and beginning work on the commissioning and integration schedule and tasks. I am working on the plans and deliverables with Sandia to receive reimbursements and finalizing the Pacific Northwest National Laboratories contract for additional reimbursement.
Power Creek Road Repairs: The project is planned for summer of 2019 and will not require a contribution from CEC. I am reviewing Alaska Department of Transportation’s plans to provide feedback on our Power Creek transmission line location and depth in the new design.
Tariff Revisions: Staff is working on incorporating additional recommendations for tariff revisions and will work with CEC counsel to prepare the billing error revisions for public hearing and adoption in May or June.
Power Quality Report: CEC Policy requires the CEO to report any Power Quality issues in the CEC system. I am preparing a Power Quality Report regarding time error correction and options for correcting this Power Quality issue.
Solar Energy Update: CEC will be installing some solar panels this summer.
CEO Verbal Report
Koplin said Merritt is on leave and he told Newlun and Kuntz to take the evening off. Koplin mentioned the next RADIANCE meeting is May 9-10, 2019 in Cordova.
Discussion on Crater Lake Geotechnical Report and Battery Energy Storage System.
GENERATION & DISTRIBUTION REPORT
A discussion ensued regarding the electric boiler installation, needed HBC penstock work for 2019, and the headquarters boiler.
Koplin reviewed the following reports and answered questions.
- Financial Reports 2/28/19
- Revenue Report for February
- Cash Flow Analysis for February
- Cash Disbursements for February
- Bankcard Statement Summary for 1/17/19
- Purchase Order Report
- 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. With only one candidate being nominated Pegau declared the nominee elected by acclamation.
Faulkner nominated Cook for Vice Chair. Cook said he was willing to run for this position. There were no further nominations, therefore, Pegau declared the nominee elected by acclamation.
Faulkner nominated Cooper for Secretary/Treasurer. Cooper said she is willing to run for this position. There were no further nominations, therefore, Pegau declared the nominee elected by acclamation.
Purchase Order #2102 to Electric Power Systems for $30,004.00 (Budgeted) – Faulkner moved and Johnson seconded to approve Purchase Order #2102 to Electric Power Systems for $30,004.00. Discussion. Voice vote: Unanimous. Motion carried.
Purchase Order #2135 to NC Machinery Company for $128,000.00 (Budgeted) – Faulkner moved and Cooper seconded to approve Purchase Order #2135 to NC Machinery Company for $128,000.00. Discussion. Cooper moved to postpone Purchase Order #2135 to the April 2019 Board meeting, seconded by Faulkner. Voice vote: Unanimous. Motion carried to postpone this item to the April Board meeting.
Purchase Order #2145 to Potelcom Supply, Inc. for $26,618.78 (Budgeted) – Faulkner moved and Cooper seconded to approve Purchase Order #2145 to Potelcom Supply, Inc. in the amount of $26,618.78. Discussion. Voice vote: Unanimous. Motion carried.
CEO Travel – Koplin reviewed past and future travel plans.
- Policy #27B – Electric Service to Trailers or Mobile Homes – noted
- Policy #28A – Reconnection of Electric Service after Disconnect for Non-Pay – noted
- Board Self-Evaluation & Development
- Invite Eyak Preservation Council to present Solar report – Add to April Agenda
- Rate Analysis – April
- Audit Presentation Monday, April 29, 2019
- Board Training with Counsel – May 22, 2019 Board meeting
- Proposed Tariff Revisions – can discuss when Counsel is here
- Review Board Evaluation Quarterly (January/April/July/October)
- RADIANCE meeting May 9-10, 2019 in Cordova at City Center
BOARD PENDING EVENTS CALENDAR – Coordinate new Director training with Director Ranney and send schedule to all Directors to invite them to attend.
SUMMARY OF BOARD DIRECTION TO CEO
- HBC Thrust Block 7 update
- CEO Report for Board on past trips (travel)
- Add RADIANCE meetings on May 9-10 to pending agenda items
Johnson – no comments
Cook – Good meeting. The Annual Meeting went well.
Cooper – Great meeting. Enjoyed the Annual Meeting as well.
Faulkner – Welcomed Ranney and welcomed Cooper back to the Board. Congratulations to the officers. Good Annual Meeting. We have lots of good things ahead of us.
Ranney – Thank you for the opportunity to work with you. Looking forward to learning more about CEC.
Pegau – Thank you to Ranney for running for the Board. Good Annual Meeting – thank you Barb.
Cooper moved to go into Executive Session for the CEO Evaluation at 7:25 p.m. to discuss subjects that tend to prejudice the reputation and character of a person; however, the person may request a public discussion, seconded by Faulkner. CEO Koplin does not request a public discussion. Staff was excused and Koplin was invited to join later in the Session.
At 7:57 p.m. the Board came out of Executive Session, where they discussed Koplin’s evaluation. No action was taken.
With no further business the meeting adjourned at 7:58 p.m.
Date Approved Secretary/Treasurer