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HomeMy WebLinkAbout05-11-2026671 Safety Moment Consent Agenda CEO Employment Agreement 11,2026 The Electric Plant Board of the City of Paducah, Kentucky d/b/a System ("PPS") held a regular Board Meeting on May 11, 2026, in the Room at the offices of Paducah Power System. The meeting was called to order at 12:00 p.m. by Chairman Darryl Pea who led. Members of the Electric Plant Board present, in addition to Darryl Pea, Edward Hely, Evan Rittgers, and Sandra Wilson. PPS employees present Dave Carroll, Cory Hicks, Rick Windhorst, Andrea Underwood, Doug Handley, Jerry Puffenbarger, Eileen Miller, and Sarah Durbin. Mark Rawlings (Robert W. Baird & Co. Inc.) and Kent Price (MeMuny & Livingston) also attended the meeting. Chairman Pea opened the meeting by calling on Rick Windhorst to present this month's Safety Moment in the absence of Brian Thomasson. Mr, Windhorst explained the safety and operational and reliability benefits of R -Switches, new relay switches with arc -flash detection that PPS has been using for some time now in its infrastructure build outs. The first item of business was a motion offered by Chairman Pea, seconded by Member Wilson, that the Electric Plant Board approve the Consent Agenda which consisted of (i) approval of the minutes of a regular meeting of the Electric Plant Board held on April 13, 2026; and (ii) approval of the bid of Murtco in the amount of $61,300 that covers the labor, materials, and equipment associated with the installation of a new Liebert FIVAC unit in the fiber room. The motion was adopted unanimously with all members saying aye. The next item of business was a motion offered by Member Rittgers, seconded by Member Wilson, that the Electric Plant Board approve the Employment Agreement contained in the Board's meeting materials for the employment of Cory T. Hicks as the Electric Plant Board's new Chief Executive Officer, effective July I, 2026, and that the Board Chairman be authorized to execute and deliver the Employment Agreement on behalf of the Electric Plant. Board. Member Hely reviewed the main provisions of the proposed Employment JUL 0 1 2026 CITY CLERK 672 Municipal Advisor Services Agreement PPS Bond Resolution, Series 2026 Supplemental Indenture No.3 11, 2026 Following brief discussion, said motion was adopted unanimously all members saying aye. Next, the Board considered a motion offered by Member Wilson, and coded by Member Rittgers, that the Electric Plant Board approve the Municipal visor Services Agreement contained in the Board's meeting materials between Electric Plant Board and Robert W. Baird & Co. Incorporated. Said motion thereafter adopted unanimously with all members saying aye. The next item of business to come before the meeting was a motion offered by Member Hely, seconded by Member Rittgers, that the Electric Plant Board adopt the Resolution entitled: RESOLUTION OF THE ELECTRIC PLANT BOARD OF THE CITY OF PADUCAH, KENTUCKY AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF THE ELECTRIC PLANT BOARD OF THE CITY OF PADUCAH, KENTUCKY REFUNDING REVENUE BONDS, SERIES 2026, IN A PRINCIPAL AMOUNT NOT TO EXCEED $90,000,000. Chairman Pea then recognized Mark Rawlings of Robert W. Baird & Co. Inc., the Municipal Advisor, for both the PPS bond issue and the simultaneous issuance of its Series 20268 Refunding Bonds by the Kentucky Municipal Power Agency ("KMPA"). Mr. Rawlings reviewed the proposed schedule of events for both the PPS and KMPA financings and the savings anticipated to be achieved from the two refundings. Following discussion of the financing plans, the motion was adopted unanimously with all members saying aye. Chairman Pea then offered a motion, seconded by Member Wilson, that the Electric Plant Board approve the Supplemental Trust Indenture No. 3 between the Electric Plant Board of the City of Paducah and Regions Bank, as Trustee, authorizing the issuance of the Electric Plant Board of the City of Paducah, Kentucky Refunding Revenue Bonds Series 2026. The motion was thereafter adopted unanimously with all members saying aye. 673 Al Update Rate Adjustment and Budget Updates 11, 2026 Next, Cory Hicks, Chief Strategy Officer, provided a brief update on the Al project at the DOE Site. Mr. Hicks stated that negotiations continue that DOE is expected to select the team chosen to move forward with of the project in the relatively near future, likely in June. Chairman Pea then called on Doug Handley, PPS Director of Finance, Supply and Rates, to update the Board on the development of the proposed for FY 2027 and the likely necessity of a base rate increase in the near future. Mr. Handley reported that, as has been the customary practice, die budget will take into account a ten-year forecast of operating expenses, capital improvements, and debt service costs. The revenue requirements side of the budgeting process is pretty much complete, but the projections of incoming revenues still require some work. Handley explained that the budget revenue inflows are conservative in that they do not take into account any projected revenue from data mining (bitcoin) customers or related to any At center. The projected expenses do assume an annual savings in debt service costs of around $800,000 from the pending PPS refunding of bonds. Dave Carroll observed that based on the most recent budget projections, there would be a seven (7%) percent deficit in revenues. Accordingly, PPS will need to implement a rate adjustment to take effect at the beginning of the next fiscal year. Carroll noted that PPS has not increased base rates since 2021, even though general inflation on goods over that same period has increased 20 to 30 percent over the last five years. He estimated that the proposed rate increase would impact a residential customer with a typical load of 1000 kWUmonth by less than $10 per month. Cory Hicks observed that with the rate increase, the PPS bill for such a 1000 kWh/month residential customer would still compare favorably to neighboring utilities. There ensued much Board discussion concerning the necessity for the proposed rate increase and how best to explain the need for the rate increase to PPS customers and the public. 674 IMay 11, 2026 Executive Session Adjournment The next item of business was a motion made by Member Rittgers, by Member Wilson, that the Electric Plant Board enter into Executive for discussion of (i) proposed or pending litigation, as permitted by KRS 0(1)(c), and a specific proposal by a business entity where public discussion the subject matter would jeopardize the location, retention, expansion, or business entity, as permitted by KRS 61.810(1)(g). The motion was adopted with all Members saying aye, whereupon the Board entered closed session. Following discussions in the closed session, Member Hely offered a seconded by Member Rittgers, that the Board return to regular session from executive session. The motion was unanimously adopted with all Members saying aye. Member Wilson then moved that the meeting of the Electric Plant Board be adjourned. The motion was seconded by Member Hely and adopted with all members saying aye, whereupon the meeting was adjourned. ATTESTED B- 2ra4 Y: /�6/' S SECRETARY-TREA, URE CHAIRMAN