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HomeMy WebLinkAbout01-23-2023551 Vanuary23, 2023 The Electric Plant Board of the City of Paducah, Kentucky d/b/a Paducah System ("PPS") held a regular Board Meeting on January 23, 2023, in the c� Conference Room at the offices of Paducah Power System. This meeting constituted the first meeting of the Electric Plant Board since the regular meeting APR 11 2023 held on October 10, 2022 in that, by consensus of the Board members, the regular CITY CLERK i Imeetings that would otherwise be held on the second and fourth Tuesdays of Safety Moment Consent Agenda 2022 and the second Tuesday of January 2023 were not held and no was achieved at the regular meetings of the Electric Plant Board scheduled November 14, 2022 and November 28, 2022. The meeting was called to order at 12:00 p.m. by Chairman Ed Hely who ided. Members of the Electric Plant Board present in addition to Chairman y were Hardy Roberts, Mark Workman, and Darryl Pea. PPS employees ent were Dave Carroll, Rick Windhorst, Andrea Underwood, Doug Handley, Sarah Durbin. Plant Board attorney, Kent Price (McMurry & Livingston), also rded the meeting. Chairman Hely opened the meeting by calling on Rick Windhorst, COO, who presented this month's Safety Moment on "Success Through Reaching Potential:' Member Pea then offered a motion, seconded by Member Workman, to approve the Consent Agenda which consisted of approval of (i) minutes of a regular meeting of the Electric Plant Board held on October 10, 2022, as corrected to indicate that Bob Wrinkle and Abby Wrinkle of Northwestern Mutual will serve as the Investment Advisor for the 401(a) plan discussed therein rather than as its Third Party Administrator; (ii) Amendment No. 2 to the Market -Based Interruptible Customer Service Agreement with Blockware Mining, Inc.; (iii) promotion of Employee #381 from Storekeeper to Apprentice Line Tech First Period; (iv) the bid of GE in the total amount of $383,926 as the lowest and best bid for Three Phase URD Transformers as set forth in the Memorandum of Rick Windhorst to Dave Carroll dated November 9, 2022; (v) the bid of Aramark in the amount of $22,309.04 as the best evaluated bid for uniform services as recommended in the 552 AMI Software - as -a Service Purchase of Bleed Valve Brush 25/40K Generator Inspection 23,2023 of Rick Windhorst to Dave Carroll dated November 10, 2022; (vi) bid of Linwood in the amount of $27,725 (after $23,000 trade-in) as the lowest best bid for a %:-ton pickup to replace Unit 8 as recommended in the of Rick Windhorst to Dave Carroll dated November 7, 2022; and the bid of Paducah Ford in the amount of $29,087 (after $35,000 trade-in) as lowest and best bid for a 1 -ton 4x4 diesel cab and chassis to replace Unit 33 as in the Memorandum of Rick Windhorst to Dave Carroll dated 8, 2022. The motion was then adopted unanimously with all members aye. Member Roberts then offered a motion, seconded by Member Workman, Electric Plant Board approve payment to Landis+Gyr for transition to AMI Software -as -a -Service (SaaS) in the amount of $51,700, which amount includes After Rick Windhorst explained the advantages of having the AMI Center Server hosted by Landis+Gyr utilizing their SaaS solution, the was adopted unanimously with all members saying aye. Member Pea, then offered a motion, seconded by Member Workman, that the Electric Plant Board approve payment for purchase of one bleed valve from Mitsubishi Power Aero in the amount of $21,835.59. The motion was adopted unanimously with all members saying aye. Member Roberts then offered a motion, seconded by Chairman Hely, that the Electric Plant Board approve the bid of Baseload Power in the amount of $98,000 as the lowest and best evaluated bid for the inspection of the brash generators located on Units 1 and 2 of the Peaking Plant. Rick Windhorst then briefly addressed the need for a 40,000 -hour inspection to be performed on both brush generators and addressed questions of Board members. The motion was then adopted unanimously with all members saying aye. Next Member Pea offered a motion, seconded by Member Workman, that the Electric Plant Board approve the bid of Turbine Technics in the amount of 553 January 23, 2023 48,960 for purchase of four replacement EGT Probe harnesses. Rick Windhorst EGT Probe explained that the original models of the EGT Probes and harnesses are no longer Harness Replacement available from Mitsubishi Aem and discussed the relative costs of retrofitting the peaking plant harnesses versus acquiring harnesses from Turbine Technics. He then addressed questions from Member Pea concerning the audits of Peaking Plant sensors and equipment. The motion was thereafter adopted unanimously with all members saying aye. The next item of business was a motion offered by Member Roberts, Ratification of EV seconded by Member Workman, that the Electric Plant Board ratify the EV Readiness RFP Readiness RFP that was issued on December 12, 2022. After brief discussion, the motion was adopted unanimously with all members saying aye. Member Pea then offered a motion, seconded by Chairman Hely, that the Letter Agreement Electric Plant Board ratify the letter agreement dated November 17, 2022, between with Bon Secours Mercy Health, Inc. the Electric Plant Board of the City of Paducah, Kentucky d/b/a Paducah Power System and Bon Secours Mercy Health, hie. d/b/a Mercy Health. Rick Windhorst the work and services to be performed for Mercy Health under the letter in connection with the expansion and relocation of facilities anticipated by the agreement. Mr. Windhorst also addressed questions of Chairman Hely regarding the potential increase in PPS load as a result of the contemplated expansion. The motion was adopted unanimously with all members saying aye. Member Roberts then offered a motion, seconded by Member Workman, Consideration of that the Electric Plant Board continue its efforts begun in mid-November 2022 to New PURPA consider adoption of the two new standards under the Public Utilities Regulatory Standards Policies Act of 1978 ("PURPA") established by the 2021 Infrastructure Investment and Jobs Act (" IIJA") and that PPS staff be directed to establish adequate procedures to ensure appropriate completion of the consideration process no later than November 15, 2023. Doug Handley then reported to the Board on the two PURPA standards to be studied which relate to (i) Demand 554 anuary 23, 2023 espouse and Demand Flexibility, and (ii) Electric Vehicle Charging Programs. He further described the process he anticipates will be employed by the Board in its consideration of the new standards. The motion was then adopted unanimously with all members saying aye. The next item of business was a motion offered by Member Pea and seconded Privacy Policy by Chairman Hely that the Electric Plant Board approve the Privacy Policy included in the Board's meeting packets. After Andrea Underwood provided a general description of the policy and addressed questions of Board members, the motion was adopted unanimously with all members saying aye. Member Roberts then offered a motion, seconded by Member Workman, Substation No. 3 that the Electric Plant Board approve the bid of Modular Connections and payment Control Building in the amount of $228,868 to said vendor for the provision of the concrete control and Equipment building (stand-alone, no panels) and the bid of KVA and payment in the amount of $258,148 to said vendor for the provision of relay panels and associated equipment, all of which are to be located at Substation No. 3. Rick Windhorst reported that delivery of the building and panels is expected November or December of this year and that installation at Substation No. 3 can be made without the necessity of an outage. The motion was then adopted unanimously with all members saying aye. Member Pea then offered a motion, seconded by Chairman Hely, that the Substation No. 3 Electric Plant Board approve the bid of Substation Enterprises and payment in the Structures and Equipment amount of $296,927 to said vendor for the provision of the structures and equipment provided for in Procurement Contract No. 8825-P3 for installation at Substation No. 3. Rick Windhorst briefly described the structures and equipment covered by the bid and explained how it differed from that approved for acquisition by the just -adopted motion. The motion was then adopted unanimously with all members saying aye. Chairman Hely then called on Andrea Underwood to discuss the results of the 2022 Christmas in the Park. Ms. Underwood reported that the donations 555 Christmas in the Park Results Power Cost Adjustment Decrease and Hedging Program Update Winter Storm Elliott Report y 23, 2023 I this year made the event what she considered average. Donations of in cash and 56,500 pounds of food were collected in the course of the She further noted that in the 26 years that PPS has sponsored Christmas in Park, over 1.1 million pounds of food have been collected and over $841,000 have been received. These figures include the amounts collected the school drives. Ms. Underwood noted that school donations account for over of the canned goods received in a typical year. She concluded by discussing planned to spruce up the event in coming years. PPS CEO Dave Carroll then reported that the Power Cost Adjustment decreased again on January 1, 2023. The savings realized by a PPS dial customer having an average usage will be around $2.04 per month. Mr. I stated his belief that absent unforeseen contingencies, the reduced PCA rate should be able to be maintained for a couple of years. He also announced that under the KMPA hedging program for the first three weeks of January had revenues of $1.6 million. Doug Handley then reported that cumulative earned since the inception of KMPA's hedging program in 2019 through 2022 totaled some $1.1 million. Dave Carroll next called on Rick Windhorst to provide a debriefing of the performance of Paducah Power System's generation facilities and distribution system during the intense cold period of Winter Storm Elliott on December 22 through December 27, 2022. Mr. Windhorst reported that although PPS avoided the rolling blackouts and mass outages that TVA and some area cooperatives had to deal with, the extreme cold temperatures and the timing of the severe weather over the Christmas holidays did cause PPS certain hardships. He described a number of lessons learned in dealing with such severely cold weather such as continuing to operate the peaking plant even if it is not called upon to run under the contract with Kentucky Municipal Electric Agency so that issues of equipment freezing can be minimized. He reported that PPS was able to work through the holiday staffing challenges at the peaking plant with the cooperation of backups in 556 Uanuary23,2023 substation and meter lab departments. As for the operation of the PPS Mr. Windhorst reported that PPS only experienced six outages affected 84 customers. While this compares favorably to other area electric providers which experienced maximum outages of from 800 to 1500 a few of the PPS outages were longer than would have otherwise been case if the CRC answering service had not been overwhelmed by calls from of other electric systems that CRC serves. He explained that have now been put in place so that PPS can be notified by CRC of high-volume call events and can opt to go into Storm -mode under which PPS directly receive customer outage calls. Member Workman next offered a motion, seconded by Member Pea, that Adjournment the meeting of the Electric Plan[ Board be adjourned. The motion was adopted all members saying aye, whereupon the meeting was adjourned. G'JlY��iI17j]'�I