MOUNTAIN PARKS ELECTRIC, INC.
Regular Meeting of the Board of Directors
Granby, Colorado
August 11, 2022
8:00 A.M.
Attendance
Present: Liz McIntyre, Jeff Hauck, Mark Volt, Cray Healy, Justin Fosha, Kristen Taddonio, Carl Trick, Mark Johnston, Scott Simmons, Joe Palmer, Adam Paulson, Rob Taylor, Adam White, Jessica Rahn, Bryson Fredregill, and Jordy McNamee.
Call to Order
President Liz McIntyre called the meeting to order at 8:00 a.m.
Determination of Quorum
A quorum was declared.
Public Comment
Mr. McNamee addressed the board with a request for funding for shirts for the Middle Park High School boys soccer team. Manager Johnston noted that the request is scheduled for consideration under Emergency Business. Directors inquired into the team’s current funding model.
McNamee exited the meeting.
Minutes
The Board reviewed minutes from the July 14, 2022, meeting.
MOTION: It was properly moved, seconded, and carried to approve the minutes for the July 14, 2022, board meeting as presented.
Attorney Summary Fees Report
The Board reviewed Attorney Williamson’s fees summary report for July 2022.
Manager’s Report
General Manager Johnston presented the Manager’s Report. He provided an update on the FERC Tri-State Contract Termination Payment (“CTP”) docket and reported on a motion by some Tri-State members requesting that the ALJ take judicial notice that Highline Electric Association provides service in both the Eastern and Western Interconnections. The ALJ’s initial decision on the CTP is expected September 29, 2022. Parties may file exceptions to the decision, and it is anticipated that such exceptions will be filed. The FERC’s ruling on the ALJ’s decision could take up to a year. Regarding the FERC Tri-State Partial Requirements docket, the disputed settlement has been submitted to the commission, which has not ruled on it.
Johnston reported that the draft Fiber Lease will be submitted to Connexon shortly.
Johnston reported on his attendance at the CREA Managers Meeting in Durango. The CREA group received presentations on anti-trust guidelines, cyber-security, electric bus utilization, supply chain issues, and data analytics.
Johnston reported on a solicitation for support from the Mesa Hotline School. Johnston discussed the hotline school services and MPEI’s participation in the school. Johnston proposed MPEI contribute $5,000.00 to the Mesa Hotline School, which contribution is scheduled for consideration under Emergency Business.
Johnston discussed the CFO search process. He is hoping to fill the position by mid-September.
Johnston discuss his attendance at the Tri-State Managers Meeting. Johnston reported that Tri-State and Untied are engaged in discussions to settle all legal disputes. Johnston reported that the Tri-State Board approved the use of additional deferred revenue to cover increased costs arising from an asset retirement. Johnston reported on the anticipated approval of the Inflation Reduction Act (“IRA”), which provides approximately $9.7 billion for cooperative electric associations. Tri-State is having discussions with the USDA regarding the rules for IRA funding. Johnston reported on discussions surrounding resource adequacy legislation and Tri-State’s position that it should be addressed at the national level.
Director Trick reported that Tri-State’s solar projects probably will not happen because of price increases. Tri-State is seeking to extend the mandatory closing of Craig station beyond 2029. The board discussed how these developments could be affected by the IRA $25 per megawatt hour solar credit.
Johnston reported that MPEI has received two offers for its Winter Park land, and that he would provide details in executive session.
Safety Report
General Manager Johnston presented the Safety Report. He reported on accidents, incidents, near misses, and damage. There were no accidents in July. Adam White reported on an MPEI fire drill and upcoming active shooter training.
MOTION: It was properly moved, seconded, and carried to accept the Safety Report as presented.
President McIntyre recessed the meeting at 9:00 am and reconvened at 9:11 am.
Discussion/Action Item A: CFC Loan Resolution
Consideration of the CFC loan was tabled.
Discussion/Action Item B: Policy B-3 Financial Management
Discussion/Action Item C: Policy B-16 MPEI Work Flow Procedures – Purchasing
General Manager Johnston presented a revised Policy B-16.
MOTION: It was properly moved, seconded, and carried to approve Policy B-16 as presented and to make the policy public.
Discussion/Action Item D: B-17 Information and Cybersecurity
General Manager Johnston presented a revised Policy B-17. Staff answered questions regarding policy responsibility.
MOTION: It was properly moved, seconded, and carried to approve Policy B-17 as presented and to make the policy public.
Discussion/Action Item E: Board Fiduciary Presentation
The Board Fiduciary Presentation was tabled for discussion in Executive Session.
Discussion/Action Item F: MPEI Education
President McIntyre led a discussion regarding MPEI’s use of the Education Fund, increased funding, program solicitation, and the MPEI Scholarship Program. The board discussed how the scholarship program could be modified to address inflation in the cost of education. The board also discussed outreach strategies to solicit funding opportunities. The board discussed past uses of the fund, including for Pre-K program funding. The board directed staff to present a review of the MPEI Scholarship Program at the September meeting along with consideration of increased community and education funding opportunities.
Discussion/Action Item G: Items for Ratification
President McIntyre presented the following actions taken at the June 9, 2022, Regular Meeting of the MPEI Board of Directors for ratification: (i) Election of MPEI Officers, (ii) Election of MPEI Western United Representative, (iii) Approve Special Meeting of the Directors to Be Held August 23, 2022, and (iv) MPEI Shareholder Consent for Mountain Parks Service, Inc. Director Election.
MOTION: It was properly moved, seconded, and carried to ratify the enumerated actions taken at the June 9, 2022, Regular Meeting of the MPEI Board of Directors as said actions are stated in the approved minutes.
President McIntyre presented the following actions taken at the July 14, 2022, Regular Meeting of the MPEI Board of Directors for ratification: (i) West Grand School District Request for Contribution to Purchase of LED Bulbs, (ii) Selection of MPEI Western Untied Alternate Representative, and (iii) Reschedule August 23, 2022, Special Meeting to August 16, 2022.
MOTION: It was properly moved, seconded, and carried to ratify the enumerated actions taken at the July 14, 2022, Regular Meeting of the MPEI Board of Directors as said actions are stated in the approved minutes.
Engineering Report
Manager Simmons presented the engineering report to the board. Simmons reported that a cost estimate has been sent for the Buffalo Creek Project. Simmons reported that Phase 2 of the fiber project is slightly behind schedule, while Phase 1 continues to suffer delays.
Operations Report
Manager Paulson presented the Operations Report. Paulson reported on storm outages, ongoing construction projects, and personnel turnover. Paulson provided a summary of MPEI’s participation in the Mesa Hotline School.
Finance Report
General Manager Johnston presented the Finance Report. Johnston provided and update on MPEI’s application for FEMA funds to assist with recovery from the East Troublesome Fire. Johnston responded to questions regarding increased power costs and MPEI revenue.
Information Technology Report
Manager Palmer presented the IT report. Palmer responded to questions from the board regarding MPEI’s advanced metering infrastructure and load control. The board discussed past load control programs, potential future load control programs, cybersecurity concerns, and Tri-State Policy 115 concerns. Johnston noted that the availability of fiber technology will create greater opportunities for implementation of demand response programs.
Palmer also reported on a cybersecurity exercise held last month designed to model business continuity in the event that MPEI lost access to computers.
Human Resources & Administration Report
Manager Rahn presented the Human Resources and Administration report. Rahn reported that MPEI is reviewing the Employers Council Benefit Survey. Rahn discussed implementation of new human resources software. She also reported on modifications to MPEI’s telecommuting policy and investigations into employee housing assistance.
Member Relations & Communications Report
Manager Taylor presented the Member Relations and Communications Report. Taylor discussed the pros and cons of prior load control programs, including incentives and return on investment. Taylor reported on MPEI and member participation in the electric bike demonstration event.
Rahn exited the meeting.
Bills for Payment
The Board reviewed the list of cash disbursements and credit card bills for July 2022.
President McIntyre recessed the meeting at 10:45 a.m. and reconvened at 10:56.
Board Open Forum
Jeff Hauck reported on his attendance at the regular meeting of the CREA Board of Directors. The CREA board held discussions regarding CREA’s core mission, broadband support, resource adequacy legislation, utility contractor liability protection, and National Lineman Recognition Day.
Director Trick reported on his attendance at the regular meeting of the Tri-State Board of Directors. Trick reported on discussions regarding the Western Governor Conference, Tri-State’s Environmental, Social, and Governance Report, and the proposed sale of Tri-State’s headquarters facility. The Tri-State board has elected to retain the headquarters and lease vacant office space. Tri-State is in discussions with Intermountain regarding membership and excess generation. Trick anticipates that a Tri-State will increase rates after resolution of the FERC matters.
Director McIntyre reported on her attendance at the Tri-State Rate Design Committee Meeting. The topics discussed by the committee include direct assignment of transmission assets, a separate rate for members also served by Basin Electric Power Cooperative, formula rates, and rates without tilt. The committee is evenly split as to whether the rate should have tilt and has not otherwise coalesced around a single approach.
Director Taddonio reported on the Tuesday, August 9th, press conference with Colorado senators regarding the passage of the Inflation Reduction Act. The act provides $9.7 billion to electric cooperatives to help with clean energy projects, such as wind and solar. It also extends the renewable energy tax credits for 10 years and/or provides a $25 per megawatt hour credit for clean energy generation. Notably, the tax credits are direct pay for non-profits, meaning that cooperatives do not need to have tax liability to take advantage of the renewable tax credits. Taddonio also reported that she was nominated for the Colorado Energy Code Board.
Emergency Business
The board considered the request made by Jordy McNamee for funding support for shirts for the Middle Park High School boys soccer team.
MOTION: It was properly moved, seconded, and carried by majority donate up to $634.50 from the Education Fund for the purchase of shirts for the Middle Park High School boys soccer team. Director Trick opposed the motion.
The board discussed a contribution to the Mesa Hotline School as proposed by General Manager Johnston.
MOTION: It was properly moved, seconded, and carried to donate $5,000.00 from the Education Fund to the Mesa Hotline School.
President McIntyre recessed the meeting at 11:25 a.m. and reconvened at 11:27 a.m.
MOTION: It was properly moved, seconded, and carried to go into Executive Session for consideration of the employee housing timeline, partial requirements power supply, apprenticeship program, personnel matters, down payment assistance program, FAMLI program recommendations, 2023 benefits renewal, Winter Park land, Policy B-3, the Attorney’s Report, and director fiduciary duty presentation, with all Directors present at the meeting and General Manager Johnston in attendance, excepting that Directors Trick and Volt exited prior to the fiduciary duty presentation. Attorney Fredregill was present for all portions of the executive session except for the personnel discussion. Staff members present at the meeting were in attendance at the executive session but exited for the discussions of personnel matters and the director fiduciary duty presentation. Rahn was in attendance at the executive session except for the portions of executive session where the Attorney Report, Policy B-3, personnel matters, and director fiduciary duty presentation were discussed.
President McIntyre recessed the meeting at 12:00 noon and reconvened at 1:03 p.m.
MOTION: It was properly moved, seconded, and carried to exit executive session.
MOTION: It was properly moved, seconded, and carried to approve Policy B-3 as presented. Director Taddonio opposed the motion.
MOTION: It was properly moved, seconded, and carried to approve MPEI participation in the FAMLI Program with MPEI paying the full premium for participation.
Old business
None
New business
None