CORDOVA ELECTRIC COOPERATIVE, INC.
REGULAR BOARD MEETING
May 22, 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 Manager of Administration and Finance Merritt, Manager of Generation and Distribution Newlun, Executive Assistant/HR Bailer (Recorder), and Project and Technology Coordinator Kuntz. CEO Koplin participated via teleconference. Andy Leman, CEC Counsel, was also in attendance.
Kelly Weaverling was present and voiced his concerns regarding the Crater Lake Water and Power Project. Kristen Carpenter was present and voiced her concerns about the Crater Lake project. Carol Hoover was present to conduct the Eyak Preservation Council Solar Presentation and voiced her concerns about the Crater Lake project. Directors thanked them for coming to the meeting to voice their concerns.
APPROVAL OF AGENDA
Johnson moved and Srb seconded to approve the agenda as presented. Voice vote: Unanimous. Motion carried.
EYAK PRESERVATION COUNCIL SOLAR PRESENTATION – Carol Hoover spoke about the Solar Cordova project and referred Directors to the Solar Cordova: A Preliminary Feasibility Report that the Eyak Preservation Council completed. Discussion. Directors thanked Hoover for the presentation.
BOARD TRAINING WITH COUNSEL – CEC Counsel Andy Leman conducted training on the NRECA Board Governance Task Force Report.
Cooper moved and Johnson seconded to approve the consent agenda that includes the following:
- Minutes of April 24, 2019 Board Meeting
- Minutes of Special Meeting of April 29, 2019
Voice vote: Unanimous. Motion carried.
CEO Written Report
CEO Travel: I will be in Anchorage next week for participation as an observer in Northern Edge military exercises and am taking a personal day while trapped in Anchorage by flight schedules for annual medical appointments. I will call in to the Board meeting.
Crater Lake Update and Go/No Go: I presented a generic update of the Crater Lake Project at the USFS / PWSSC community educational meeting last Tuesday. We received the Geotechnical Data Report (GDR) that presents the professional conclusions drawn from the raw field data. It is included in this Board packet and Craig Kuntz will present a brief overview at the Board Meeting. You will note that the City of Cordova is named – their staff participated heavily and incorporated their comments and requirements for the exploration to satisfy their concerns for site suitability for a dam and for clean drinking water throughout permitted drilling and exploration activities. There are also long-term, low interest funding programs now available to the City of Cordova that may encourage their participation. The GDR will be posted on the CEC website after the Board meeting next week.
CTC Collaboration: I met with Jeremiah Beckett to continue discussions about selling Power Creek fiber to CTC in exchange for irrevocable use agreements and maintenance of critical CEC communications.
Interest Rates: Interest rates have noticeably dropped over the past few weeks, and variable is again dropping; 0.06% in just the last few weeks.
RADIANCE Update: Work is proceeding on schedule. The last technical interchange meeting was held on May 9th and 10th in Cordova.
Battery Electric Energy Storage (BESS) Project Update:
The equipment setting and factory checkout is complete for the new battery, inverter, and transformer. We are on schedule to energize the transformer in June. We have to pull and terminate wires, finish the preliminary programming work, install new substation H-beam and recloser components, and test them out. Next week will be another busy one as it will include dam replacement work at Power Creek.
Power Creek Road Repairs: Scheduled for this summer, the last washout is being repaired Monday so we can proceed with dam repairs.
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 June or July. Other work efforts are competing 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, and due to other project and budget priorities, comprehensive time error correction upgrades should wait until late 2019 or 2020 or as opportunity offers.
Solar Energy Update: The Eyak Preservation Council is making some editorial revisions to their report, I may not have them until Monday but will forward them as soon as available and look forward to their presentation to the Board. It will be fairly concise and straightforward I believe.
Pacific Northwest National Laboratory (PNNL) Contract: I have finally completed terms on the PNNL contract for $325,000. CEC is subcontractor so is not a direct federal funds recipient. We budgeted to receive this $325,000 contract, but it exceeds $25,000 and is a contract I feel needs Board approval.
Larsen Energy Customer Survey and Brand Audit: This project is approved in the budget and the base contract is $25,000. However, due to the $3,000 pre-audit work, it exceeds my $25,000 budgeted work authority and needs Board approval.
CEO Evaluation Process: I have solicited feedback from management staff regarding a 360-degree CEO evaluation and will be submitting a draft recommendation for a new 360-degree format in the coming months. It occurred to staff that CEC management participation in a 360-degree Board self-evaluation process might provide a fresh perspective for the Board as well.
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 Crater Lake Geotechnical Report and the Crater Lake Water and Power Project.
Discussion regarding Larson Energy Customer Service and Brand Audit. Merritt contributed to the conversation explaining the Brand Audit.
GENERATION & DISTRIBUTION REPORT
PROJECT & TECHNOLOGY COORDINATOR REPORT – CRATER LAKE PRESENTATION
Kuntz showed a power point presentation on the Crater Lake project and work completed while the geotechnical study was being done. Discussion on project.
Merritt reviewed the following reports and answered questions.
- Financial Reports 4/30/19 – Handout
- Revenue Report for April
- Cash Flow Analysis for April
- Cash Disbursements for April
- Purchase Order Report – Handout
- Generation and Sales Statistics
Merritt mentioned insurance renewals are in the fall and she is looking at hiring a Broker. She mentioned CEC currently goes through ARECA for costs and with a Broker the Broker shops around and gets options. Discussion.
McMillan Jacobs Geotechnical Data Report – Pegau asked if there was a more detailed report the Board will have access to and Koplin said there was. Pegau said when the time comes for a go/no-go decision on the Crater Lake project there should be a special meeting with personnel from McMillan Jacobs present to answer questions. Discussion.
Larsen Energy Customer Service and Brand Audit – Faulkner moved and Srb seconded to approve a not to exceed amount of $28,000 for Larsen Energy to perform the CEC Customer Survey and Brand Audit. Discussion. Cooper moved and Cook seconded to postpone this item to the June Board meeting. Voice vote: 6 yea – 1 nay (Ranney). Motion carried to postpone until June.
Director Cook left the meeting.
Pacific Northwest National Laboratory Subcontract – Johnson moved and Cooper seconded to enter into a contract with Battelle, Contract Number 465252, in the amount of $325,000 from May 15, 2019 through December 31, 2020 to provide the list of deliverables stated in the statement of work. Discussion. Ranney commended the CEC staff for going out for outside money. Discussion. Voice vote: Unanimous. Motion carried.
Rate Analysis – Pegau moved and Cooper seconded to postpone this item to the June Board meeting. Voice vote: Unanimous. Motion carried.
CEO Travel – Koplin mentioned traveling in June for the Electric Advisory Committee meeting.
Capital Credits General Retirement – Discussion
Alaska Power Association Annual Meeting – Juneau – August 2-023, 2019 – Discussion. Directors to check their schedules and report at the June meeting if they would like to attend.
- Policy #63A – Conflict of Interest – Discussion. Add to June agenda
- Policy #31A – Member Education and Public Relations – Discussion. Add to June agenda
- Policy #32D – Membership in Other Organizations – noted
- Review Board Evaluation Quarterly (January/April/July/October)
BOARD PENDING EVENTS CALENDAR
Pegau mentioned the Battery Energy Storage System Ribbon Cutting Ceremony on June 7, 2019.
SUMMARY OF BOARD DIRECTION TO CEO
- Add the full geotechnical report to the Board drop box
- Larsen Study – get testimonials and commitments to date, a comparison table for cost comparisons, and information on broker fees.
Johnson – no comments
Srb – no comments
Faulkner – good meeting, thank you.
Cooper – great meeting, a little long. Maybe when we have training again it could be in a standalone meeting.
Ranney – Said he attended the public meeting when Koplin gave a presentation on the Crater Lake project and that the audience asked good questions, but the comment period afterward was extremely negative. Ranney said there are other technologies out there that are really exciting, and he hopes to see some of this information in the future.
Pegau – Mentioned the Prince William Sound Science Center records the monthly presentations so anyone that would like to see the presentation Koplin did regarding the Crater Lake project could visit the Science Center website. Pegau thanked the Board for their patience tonight as it’s been a long meeting.
Johnson moved and Ranney seconded to adjourn at 9:45 p.m.