Mountain Parks Electric, Inc.
Regular Meeting of the Board of Directors
Granby, Colorado
June 8, 2023
8:00 A.M.
Attendance
Present: Liz McIntyre, Cray Healy, Mark Volt, Michael Sjobakken, Kristen Taddonio, Justin Fosha, Virginia Harman, Adam Paulson, Angie Wallace, Emily Meeks, Joe Palmer, Aaron Street, and Attorney Bryson Fredregill attended in person. Director Ty Wattenberg was absent.
Call to Order
President Liz McIntyre called the meeting to order at 8:02 a.m.
Determination of Quorum
A quorum was declared.
Attorney Fredregill noted for the record that the Mountain Parks Electric, Inc. (“MPEI”) Bylaws provide that a director’s term continues until the election of a director for a new term and the commencement of that term. As such, Kristen Taddonio continues to serve as the District 1 director until completion of the District 1 election.
Public Comment
There was no public comment.
Consent Agenda
a. Approval of the May 11, 2023, Minutes of the Regular Meeting of the Mountain Parks Electric, Inc. Board of Directors.
b. May 2023 Bills for Payment
MOTION: It was properly moved, seconded, and carried to approve the consent agenda.
Attorney Report
The Board reviewed the Attorney Summary Fees Report as prepared by Attorney Levi Williamson. Attorney Fredregill reported that the annual director duty presentation will be tabled until the completion of the District 1 election. Fredregill noted that director duties are addressed in “Policy D-1 Director Duties and Standards” and “Policy D-3 Conflicts of Interest.”
Manager’s Report
Manager Harman presented the Manager’s Report. Harman reported on projects that she will be working on in June, including power supply, cost-of-service study, rate design, fiber construction, personnel matters, and community projects. Harman reported that Tri-State approved a rate increase that will result in an increase of 6.4% to MPEI’s rates. The anticipated increase in the cost of power will be accounted for in the cost-of-service study. Harman is focused on MPEI’s communications strategy with respect to the rates resulting from the MPEI’s upcoming study.
Harman reported that negotiations with an alternate power supplier continue and that a detailed discussion would follow in executive session. Harman is investigating utilization of the New Era Fund for power transition.
Harman reported that MPEI is looking at grant partnership opportunities with the Beneficial Electrification League.
MPEI is staff is closely monitoring contractor work related to the completion of Phase 1 of the fiber backbone.
Harman reported that sections of the MPEI Headquarters were found to have elevated radon levels, and management is taking appropriate steps to mitigate the issue.
Harman reported that MPEI is partnering with Yampa Valley Electric Association, Inc. and Holy Cross Energy to engage a full-time grant writer, who will be able to help identify and win grant opportunities.
DISCUSSION ITEMS
Updated 2023 Construction Work Plan
Adam Paulson presented the updated 2023 Construction Work Plan. Due to delays in grant funding and supply chain, a substantial portion of the work plan will not be started in 2023. Management continues to work on developing the Construction Work Plan and Long-Range Load Forecast.
Director Volt inquired about the upgrade to the Kremmling irrigation circuit. Paulson reported that the line in question was taken over from WAPA and is being technologically updated.
Director Healy inquired about priority projects that could be delayed due to delayed FEMA funding. Paulson reported that work will begin on priority projects regardless of the status of FEMA funding. Harman discussed the FEMA funding process, impact to margins, and tracking of deferred projects.
Cost-of-Service Study and Rate Discussion
Harman and Meek reported on the status of the cost-of-service study request for proposals. MPEI received four responses to the RFP with significant differences in pricing. Each response required several months for the final deliverable. Harman reported that MPEI awarded the contract to Power Systems Engineering (“PSE”). PSE is already working with MPEI on other projects.
Director Taddonio inquired as to how the cost-of-service study will account for contingent power supply costs. Harman reported that MPEI will request that PSE’s analysis address multiple power supply scenarios.
Taddonio discussed reporting of the demand component of MPEI’s power supply, and Meeks stated she would like to add a demand component to future board reports.
The Board and management discussed Tri-State’s rate increase, the potential for a challenge to such rate at the Federal Energy Regulatory Commission, how an associated rate reconcilliation could impact MPEI’s members, and MPEI’s communications strategy. The board also discussed Tri-State’s budget.
Reserve Fund Practices
Meeks reported on her review of the form of the Finance Report. Meeks proposed that reports regarding MPEI’s cash reserves delineate between unrestricted funds, restricted funds, and deferred revenue. Meeks reported that of MPEI’s cash balance of approximately $9 million, approximately $3 million is unrestricted. This amount excludes deferred revenue, which is also unrestricted; however, Meeks would prefer to report the deferred revenue cash reserve separately. Meeks reported that restricted cash funds include proceeds from real estate sales and capacity charges. Meeks proposes modifying the financial reporting and adoption of a cash management policy upon completion of CFC’s financial review.
ACTION ITEMS
Elect Officers and Delegates
Attorney Fredregill recommended tabling the election of officers and delegates until completion of the annual meeting in August as the MPEI Bylaws provide for officer election at the first meeting of the board of directors held after the annual meeting.
MOTION: It was properly moved, seconded, and carried to table the election of offices and delegates until the August Regular Meeting of the MPEI Board of Directors.
New Member Application
Meeks presented a revised Electric Service Agreement. The application content is mostly the same as the old application, with the information reorganized to be more member friendly.
MOTION: It was moved and seconded to approve the Electric Service Agreement as presented. During discussion, Director McIntyre proposed a revising the agreement so that the “Clean Power Program” options resemble the “Operation Round Up” options by providing a “[n]o, I do not wish to participate” checkbox. It was properly moved, seconded, and carried to amend the original motion as proposed. The amended motion passed unanimously.
Net Metering Reconciliation Timing
Manager Harman proposed changing the net metering tariff, so that solar credits are banked from April 1 to March 31 of the following year with reconciliation occurring each April. Harman answered board questions regarding the capabilities of the MPEI’s billing software to account for the change. She also mentioned that the modified solar credit accounting year will allow net metering members to make greater use of solar credits during winter peaking months.
MOTION: It was properly moved, seconded, and carried to direct staff to propose an amendment to the net metering tariff changing the solar credit accounting year as discussed.
President McIntyre recessed the meeting at 9:45am and reconvened at 10:00am
Operations and Engineering Report
Adam Paulson presented the Operations and Engineering Report. He reported that Power Systems Engineering is making progress developing the Long-Range Load Forecast. Paulson stated that the Highway 125 fire reconstruction project is complete. Contractors are working on Phase 1 and 2 of the fiber backbone project. Phase 1 expected to be completed by the end of June. MPEI also completed fiber connection to the schools in Walden. Paulson reported that engineering has received many data requests and has done well with timely responses.
Finance Report
Emily Meeks presented the Finance Report. Meeks reported that, as of April 2023, MPEI’s margins are 25 % below budget. The variance from budget is largely due to lower revenues and higher cost of power. Staff is investigating the budget variance, but margins remain acceptable. Meeks noted that the financial report shows a large decrease in cash with a corresponding increase in plant.
Information Technology (IT) Report
Joe Palmer presented the IT Report. Palmer reported that the Knowbe4 test results were skewed by spam filters automatically opening the test e-mail attachments. Palmer has addressed this issue.
Human Resources and Administration Report
Angie Wallace presented the Human Resources and Administration Report. MPEI continues to make progress filling open positions. MPEI has filled all but two positions. The MPEI rental house is being used to house a new employee and family while they search for a new home. There were no lost time injuries for May.
Member Relations and Communications Report
Virginia Harman presented the Member Relations and Communications Report. She introduced the new Member Relations and Communications Manager, Aaron Street. Street and his family moved up from Hot Springs Arkansas where he managed communications, marketing, and relationships there. Welcome Aaron!
Board Open Forum and Associated Reports
Cray Healy reported on his attendance at the Colorado Rural Electric Association (CREA) Board of Directors meeting. The CREA meeting was hosted by Morgan County REA in Ft. Morgan, where the directors toured a methane digester project. Healy provided a summary of the end of the Colorado legislative session. Healy expressed concerns about CREA’s position with respect to a recent decision reducing the Corps of Engineers’ power to protect wetlands.
Mark Volt reported that there was no meeting of the Western United Board of Directors.
Kristen Taddonio reported that the Colorado Energy Code board has finalized the new energy codes, which will be adopted between 2023-2026. The codes are available at:
New Business
No unnoticed new business
Emergency Business
No emergency business.
Executive Session
MOTION: It was properly moved, seconded, and carried to go into Executive Session for consideration of power supply matters and legal matters. All directors present at the meeting, Harman, Meeks, Paulson, and Fredregill were present for the entirety of the executive session.
President McIntyre recessed the meeting at 10:51 a.m. and reconvened in executive session at 11:00 p.m.
MOTION: It was properly moved, seconded, and carried to exit executive session.
The meeting adjourned at 12:21 p.m.