Mountain Parks Electric, Inc.
Regular Meeting of the Board of Directors
Granby, Colorado
November 10th, 2022
8:04 AM
Attendance
Present: Liz McIntyre, Jeff Hauck, Justin Fosha, Kristen Taddonio, Mark Volt, Cray Healy, Carl Trick, Mark Johnston, Adam Paulsen, Rob Taylor, Joe Palmer, Adam White, and Levi Williamson were present video conference. Director Hauck entered the meeting at 8:06 a.m. and Levi Williamson entered the meeting at 8:07 a.m.
Call to Order
President Liz McIntyre called the meeting to order at 8:04 a.m.
Determination of Quorum
A quorum was declared.
Public Comment
One member had expressed interest in addressing the Board but was given incorrect Zoom information. No other members contacted MPEI to attend the meeting.
Minutes
The Board reviewed minutes from the October 13, 2022, meeting.
MOTION: It was properly moved, seconded, and carried to approve the minutes for the October 13, 2022, board meeting as presented.
Attorney Summary Fees Report
The Board reviewed Attorney Williamson’s fees summary report for October 2022.
Manager’s Report
General Manager Johnston presented the Manager’s Report.
Johnston reported that Cloudbreak believes they can make a community solar project work for MPEI. Manager Johnston will provide an economic analysis of Cloudbreak’s proposal to the Board at a future meeting.
Several parties filed exceptions to the FERC ALJ’s recommended decision in the CTP docket. The partial requirements decision is still pending at FERC.
Johnston reported that Conexon hasn’t commented on the draft agreement sent to them in August. Johnston sent the draft agreement to another potential broadband partner interested in providing fiber to the home. Over a dozen large entities have expressed interest in tapping into MPEI’s new fiber backbone. This would be large-scale commercial, not residential service. MPEI is working with special legal counsel specializing in broadband to develop the agreements to allow entities to tap into backbone.
Johnston reported that the new HR Manager will begin work on December 5, 2022. The new CFO is expected to start by January. Staff met with Inbank, a financial institution, about services they provide. MPEI is considering using their credit card and fleet program. The Winter Park land sale is still pending.
Manager Johnston reported on his conversation with Patrick Brower, with the Jackson Enterprise Initiative, about a local business interested in installing level 3 EV chargers in Walden.
MPEI management, board members, and employees personally donated $4,275 to Mountain Family Center to help purchase food for local families in need this holiday season. The MPEI holiday party will be December 9, 2022.
The Safety Report prepared by Adam White was reviewed. There were no major incidents to report.
Discussion & Action Items
2023 Annual Meeting Date
MOTION: It was properly moved, seconded, and carried to hold MPEI’s 2023 Annual Meeting on May 13, 2023 at the Middle Park High School in Granby.
Policy C-3 Vandalism
General Manager Johnston presented revised policy C-3.
MOTION: It was properly moved, seconded, and carried to approve Policy C-3 as presented and to make it public.
Policy C-4 Scholarship Program
General Manager Johnston presented revised Policy C-4. Revisions to the policy include re-emphasizing the eligibility of vocational training programs and clarifying that all persons (not just current students) within MPEI’s service territory are eligible to apply.
MOTION: It was properly moved, seconded, and carried to approve Policy C-4 as presented.
Approval of IRS Form 990
The MPEI Board reviewed the MPEI tax return form 990.
MOTION: It was properly moved, seconded, and carried to approve the 990 tax return as presented.
2023 MPEI Budget
General Manager Johnston presented the proposed 2023 budget, which was presented at the October meeting.
MOTION: It was properly moved, seconded, and carried to approve the 2023 budget as presented.
Clean Power Committee
A Clean Power Committee member resigned. Liz McIntyre recommended that the MPEI Board appoint Amy Wolf to fill the vacancy.
MOTION: It was properly moved, seconded, and carried to appoint Amy Wolf to the Clean Power Committee.
Ratification of Actions Taken at the October MPEI Board Meeting
President McIntyre presented the following actions taken at the October 13, 2022, Regular Meeting of the MPEI Board of Directors for ratification: Donation of $20,000 to Grand Enterprise, with $10,000 supporting Jackson County, contingent on the Enterprise receiving annual matching donations and giving annual reports to the MPEI Board.
MOTION: It was properly moved, seconded, and carried to ratify the action taken at the October 13, 2022, Regular Meeting of the MPEI Board of Directors as said actions are stated in the approved minutes.
Winter Park Land Sale
The MPEI Board reviewed a resolution to sell the Winter Park land property.
MOTION: It was properly moved, seconded, and carried to approve the resolution as presented.
Operations and Engineering Reports
Adam Paulsen presented the Operations and Engineering Report. Operations and Engineering continue to work on the FEMA grants for the fire recovery. The Highway 125 project excavation is largely complete. The temporary line has been retired. The Trail Creek project that was deferred due to material shortages is now out to bid. MPEI is exploring working with a new company on vegetation management, specifically completing a tree audit for the entire system and digitizing records.
Construction season has been busy. MPEI crews are currently booked about two weeks out. The fiber project is proceeding. Several road crossings need to be completed by the subcontractor and staff is concerned that winter is fast approaching. MPEI is optimistic that some of the fiber will be available for use by the end of the year and that the project will be completed in the spring. Two new employees will be joining the operations and engineering department, and a third offer is out. MPEI is still looking for a staff engineer, GIS technician, and will likely need to hire another employee soon in response to retirements. With the onset of the winter season, new residential service digs will be paused until spring. No new residential dig contracts will be signed until March so that bids reflect up to date pricing.
Finance Report
General Manager Johnston presented the Financial Report. Revenues are up as well as power costs. The YTD margin is approximately the same as last year at this point. Some FEMA money is starting to come in to help reimburse expenses for rebuilding from the 2020 East Troublesome fire. While FEMA money does not reimburse all the cost, it is a great help, with about $3 million expected to come in for rebuild projects underway.
Information Technology Report
Joe Palmer presented the IT Report. MPEI has several strategic goals related to IT, including using technology to address reliability and load control, and ensuring that MPEI has a secure system. Over the last month, Palmer attended certified information security manager training. MPEI is also planning to engage the Tantalus metering system to produce a radio frequency propagation study to reduce dependency on 220 Mhz and enable more efficient upgrade and placement of new collectors. The new fiber backbone project should also improve meter communications.
Human Resources & Administration Report
General Manager Johnston presented the HR Report. MPEI has contracted out some HR services and looks forward to welcoming a new HR Manager soon. Some HR and IT services may continue to be contracted. After failing to hire someone for the open GIS position in Granby, the position is now being offered with the option for remote work. The finance manager has been selected and will be announced soon. An open meter technician position is being advertised due to retirement. MPEI also posted a staff engineer position.
Communications and Member Relations Report
Rob Taylor presented the Communications and Member Relations Report. The street light tariff approved by the MPEI Board in October will be advertised in local papers and will go into effect in January. Notice of the capital credit return to members will also appear in local papers and bill credits will be delivered in December.
MPEI is running a holiday lighting contest in coordination with local chambers of commerce, who will help MPEI select winners. First prize is a $300 bill credit, second place is $200, and third place is a $100 bill credit.
Rob Taylor also presented information on trade school program offerings and costs. Colorado and Wyoming vocational college programs offer a wide range of vocational training opportunities, and costs range between $1,000 and $13,000, excluding room and board. Electrical lineworker school (such as Mesa Hotline School in Grand Junction) costs $20,000-$27,000, and larger scholarships may be available for this career opportunity. MPEI invites people in its service territory interested in vocational training to consider applying for scholarships.
Bills for Payment
The Board reviewed bills for payment in October.
Board Reports and Open Forum
Jeff Hauck reported that CREA hosted the 13th Energy Innovations Summit. Many interesting sessions were available on geothermal, EVs, and other technologies. At the associated CREA Board meeting, the CREA Board discussed a bill to be introduced by Xcel regarding resource adequacy. Hopefully this will be resolved in the future with an RTO, but CREA believes a solution is needed in the interim. Hauck also reported on his attendance at a policy class. CREA dues are increasing this year, in part due to CORE leaving CREA. CREA cut many expenses to limit the cost increase, which is expected to be in the single digits.
Carl Trick reported on his attendance at the regular meeting of the Tri-State Board of Directors. Liz McIntyre couldn’t attend the Tri-State rate design committee meeting. Don Kerns said the peaker method is the one coming to the top of the list. Instructions were to have rate design members bring this back to local boards to explain the methodology. Duane Highley reported that Tri-State is working on a master special use permit for vegetation management to mitigate fire risk. Local co-ops may be able to join the master special use permit. The Southwest Power Pool is requesting that Xcel make a decision about joining the SPP by March, 2023. Colorado law requires all G&T’s join an RTO by 2030. Natural gas prices will increase this winter which could impact generation costs. In executive session, Trick will discuss resource proposal responses and cost ranges. Liz McIntyre reported that Tri-State’s authority to sell to nonmembers was denied by FERC. Manager Johnston reported that Tri-State didn’t have a specific tariff for selling to nonmembers, which may be the reason for the FERC’s decision.
Kristen Taddonio reported that she participated in a listening session for USDA regarding the $9.7 billion reserved for rural electric cooperatives in the Inflation Reduction Act. USDA will be responsible for distributing those funds. Taddonio reported that, speaking for herself from the perspective of a former federal grant manager, she urged USDA to consider reserving a portion of the funds for distribution co-ops (acknowledging that generation & transmission co-ops were likely to get much of the funding). She also urged USDA to be mindful of the challenges faced by smaller co-ops with smaller staffs and encouraged USDA to aid distribution co-ops unfamiliar with federal grant making processes to increase their chances of success. Kent Singer at CREA reached out to thank Taddonio for her comments.
Mark Volt attended the CREA board operations and process training. He appreciated the in-person training and felt that MPEI was on the right track based on what he learned.
Liz McIntyre reported that she and Cray Healey attended MPEI’s sustainable building event in Winter Park. It was well attended, with the following sustainable building topics discussed: heat pumps, EVs, and more. McIntyre reported on a housing project at Holy Cross. Holy Cross has an adder on their bill to help with these types of projects. According to McIntyre, one of the metrics Holy Cross uses to evaluate projects is cost per kWh saved. The Holy Cross representative stated that this particular project was $0.02/kWh, which is below Holy Cross’s wholesale cost of $0.025/kWh. McIntyre reported on her attendance at the CREA Energy Innovations Summit. She reported on battery development, including solid state batteries and re-using electric vehicle batteries for building and grid back-up. She also reported on the microgrid session. Some benefits of microgrids are invaluable (e.g. keeping a hospital going or a fuel pump going during a fire event), but it is hard to quantify the benefits.
Regarding the Tri-State rate design committee, McIntyre reported that the original discussion at the committee was to keep the rate design simple for the first few years. Now the committee is talking about a formula rate that would be in place potentially a long time. Part of keeping the rate simple would include having a large window (10 hours) for demand charges year-round; however, some believe that the real cost is driven by winter and summer peaks, with narrower windows. Tri-State staff would like to continue with the larger 10-hour year-round window, which allows for rate recovery with less volatility, but some other co-ops feel this is unfair. Director McIntyre thinks there will be more discussion in the rate design committee about formula rates, with a summer and winter peak, instead of a year-round 10-hour window, as there is not yet consensus. Director Taddonio suggested having a presentation given at a MPEI Board meeting on generation & transmission rate design and how that will impact MPEI. Director McIntyre and Manager Johnston elaborated more on how the FERC manages rate design, options for rate design, and implications of what happens if Tri-State over-collects revenue or under-collects under FERC rules. In brief, if a rate is accepted by FERC subject to refund and Tri-State over-collects before being ordered to refund money, Tri-State may face a significant budget shortfall when the refund is paid. On the other hand, if Tri-State under-collects, Tri-State cannot recover the shortfall.
Old business
None
New business
Headwaters Land Trust Request
The Headwaters Land Trust requested that MPEI donate $75,000 to assist with buying a conservation easement on 780 acres of land near Granby. The MPEI Board discussed the request, terms and conditions, and public access options. The Town of Granby is the current owner of the property and is looking to either sell the property or create a conservation easement if sufficient revenue can be raised. The land would include public river access and preserve the last remaining sage grouse habitat in the area. The MPEI Board discussed that any donation could come from unclaimed capital credits and that the donation would be a small fraction of the total project cost estimate of $1.5 million. Cray Healy disclosed that he is a past member of the Headwaters Land Trust Board and that he currently sits on an advisory board to the Trust.
The Grand County Volleyball Club requested that MPEI be a team sponsor. Eligible age ranges for the teams are middle school and high school. The club is open to kids from East and West Grand school districts, although the club itself is not affiliated with the schools. Justin Fosha disclosed that his daughter is a potential team member and that he would abstain from voting on any motion associated with the request.
MOTION: It was properly moved, seconded, and carried to sponsor the Grand County Volleyball Club at the $1,500 level with funds from the MPEI Education Fund, contingent on the club allowing players from any area of MPEI’s service territory to participate. Justin Fosha did not vote.
MOTION: It was properly moved, seconded, and carried to go into Executive Session for consideration of a legal update, member information, Colorado Country Life budget increase, and Tri-State RFP information, with all Directors, General Manager Johnston, and Attorney Williamson in attendance.
President McIntyre recessed the meeting at 11:03 a.m. and reconvened at 11:25 a.m.
President McIntyre recessed the meeting at 1:00 p.m. and reconvened at 1:15 p.m.
MOTION: It was properly moved, seconded, and carried to exit executive session.
The meeting adjourned at 1:38 p.m.