board meeting notice & agenda
TRANSCRIPT
The Board reserves the right to move into Closed Session on any of the above items.
1. Approval of:
a. January 23, 2019 Board Meeting Minutes b. January 2019 Financial Statements c. January 2019 Warrants
2. Board Training – Substation Department
3. Discussion on Air Museum request for donation.
4. Report on 2018 Wholesale Power. 5. Introduction to Integrated Resource Planning.
6. Approval to advertize sale of surplus vehicles.
7. HR Committee report on General Manager annual review and descision on salary recommentation.
8. General Manager’s Report.
9. Staff Reports as needed. 10. Closed session to discuss pending or reasonably imminent litigation and the purchase,
exchange or lease of real property.
11. Possible decision on acquisition of real property.
AGENDA
HEBER LIGHT & POWER COMPANY 31 S 100 W
Heber City, UT 84032
BOARD MEETING NOTICE & AGENDA
Date: February 27, 2019 Time: 3:00 pm Location: Heber Light & Power Business Office 31 S 100 W, Heber City, UT
Board of Directors:
Heber City Mayor - Kelleen Potter Midway City Mayor - Celeste Johnson
Charleston Town Mayor - Brenda Kozlowski Wasatch County Council Rep. - Kendall Crittenden
Heber City Council Rep. - Jeff Smith Heber City Council Rep. - Wayne Hardman
Heber Light & Power Board Minutes 2019-01-23 -- Draft
Page 1 of 4
HEBER LIGHT & POWER COMPANY
31 South 100 West
Heber City, Utah 84032
BOARD MEETING
January 23, 2019, 3:00 pm
The Board of Directors of Heber Light & Power met on January 23, 2019, at 3:00 pm at the Heber Light & Power
Business Office, 31 S 100 W, Heber City, Utah.
Board Member Attendance: Board Chair - Kelleen Potter: Present
Director - Celeste Johnson: Present
Director - Brenda Kozlowski: Present
Director - Jeff Smith: Excused
Director - Wayne Hardman: Present
Director - Kendall Crittenden: Excused
Others Present: Jason Norlen, Bart Miller, Emily Brandt, Jake Parcell, Harold Wilson, Adam Long, Rob Tuft,
Ron Lowry, Bruce Zollinger.
Chair Potter welcomed those in attendance.
1. Consent agenda - approval of: a) December 17, 2018 Board Meeting Minutes, b) December 2018 Financial
Statements, c) December 2018 Warrants. Chair Potter called for a motion regarding the items on the consent
agenda.
Motion. Director Kozlowski moved to approve the consent agenda items. Director Johnson seconded the
motion. The motion carried with the following vote:
Board Chair - Kelleen Potter: Approve
Director - Celeste Johnson: Approve
Director - Brenda Kozlowski: Approve
Director - Jeff Smith: Excused
Director - Wayne Hardman: Approve
Director - Kendall Crittenden: Excused
2. Discussion and approval of 2019 Board of Directors Meeting Schedule. After some discussion regarding
the meeting dates and times, the Board decided to leave the schedule as it has been on the fourth Wednesday of the
month at 3:00 pm.
Motion. Director Kozlowski moved to approve the 2019 Board of Directors Meeting Schedule. Director
Johnson seconded the motion. The motion carried with the following vote:
Board Chair - Kelleen Potter: Approve
Director - Celeste Johnson: Approve
Heber Light & Power Board Minutes 2019-01-23 -- Draft
Page 2 of 4
Director - Brenda Kozlowski: Approve
Director - Jeff Smith: Excused
Director - Wayne Hardman: Approve
Director - Kendall Crittenden: Excused
3. Decision on Resolution 2019-01 Approving 2018 Fourth Quarter Distributions to Members. Director
Johnson stated that she had looked over Resolution 2019-01 and saw no changes from previous resolutions. Chair
Potter called for a motion to accept Resolution 2019-01.
Motion. Director Hardman moved to approve Resolution 2019-01 Approving 2018 Fourth Quarter
Distribution to Members. Director Johnson seconded the motion. The motion carried with the following
vote:
Board Chair - Kelleen Potter: Approve
Director - Celeste Johnson: Approve
Director - Brenda Kozlowski: Approve
Director - Jeff Smith: Excused
Director - Wayne Hardman: Approve
Director - Kendall Crittenden: Excused
4. Discussion and approval of assistance to Navajo Tribal Utility Authority – Light-up Navajo Mutual Aid
Project. Jason reported on the Navajo Tribal Utility Authority and stated that the APPA Mutual Aid project was to
help the Navajo tribes bring power lines into desolate areas where they currently have no electricity. He mentioned
they have about 186,000 citizens and that it is a very poor community. He stated that they have no electricity to the
well they use for water resources and that they currently haul water in pickup trucks and rely on wood and coal to
heat their homes. They are needing labor and trucks and are asking to send a line crew for a week to help build a
section of the line. Jason stated that we have a four-man crew willing to go with a service truck and that Public
Power comes together in times of crisis to help those in need. Pending Board approval, Jason stated he would
notify APPA that we have a crew available for either the week of April 9 or the week of May 13, 2019. Jason also
mentioned that we would send a crew that normally works on new developments and not a crew that does service
work. Jason estimated that the cost of sending a crew would be around $11-14 thousand dollars.
Motion. Director Johnson moved to approve assistance to the Navajo Tribal Utility Authority. Director
Hardman seconded the motion. The motion carried with the following vote:
Board Chair - Kelleen Potter: Approve
Director - Celeste Johnson: Approve
Director - Brenda Kozlowski: Approve
Director - Jeff Smith: Excused
Director - Wayne Hardman: Approve
Director - Kendall Crittenden: Excused
5. Discussion and possible decision on creation of an advisory board. Chair Potter stated that based on
previous discussion, the Board was open to the idea of creating an advisory board under specific criteria. Chair
Potter suggested tasking Adam Long with looking into the legalities and moving forward with policies and
procedures one step at a time. Jason Norlen stated that we need to look at the organization bylaws to make sure the
wording will accommodate an advisory board. He mentioned that setting the foundation of an advisory board
correctly will be beneficial for future issues. Director Kozlowski felt that an advisory board should just be for
special needs that come up and not everything on the agenda, and that a board consist of three to five qualified
applicants. Director Johnson stated she has found advisory boards very beneficial and would like to keep moving
Heber Light & Power Board Minutes 2019-01-23 -- Draft
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forward by looking at the bylaws first and then studying what other entities have done to create effective advisory
boards. Adam stated that we would start with the basics and report next month.
6. General Manager’s Report. Jason Norlen reported on the Navajo Tribal Solar Project and stated that it is
fully subscribed within the UAMPS group at 50MW. The participants will share in the cost of the study phase of
the project. Jason showed a map of the Navajo tribal lands near the Utah/Arizona border and the proposed location
of the project in the Kayenta District. Jason stated that the project will benefit displaced workers from nearby coal
projects that are being shut down. Jason reported that UAMPS is hosting a public power legislative reception on
February 19 at 6:00 p.m. and that on February 12 they are also hosting a Millennial Nuclear Caucus. At the caucus
representatives from the Department of Energy, NuScale, INEL and others will discuss the importance of nuclear
energy for the future of clean energy. Regarding the transmission line project, Jason stated that there are still funds
available in the budget to redo some of the simulation photographs to show how the line would look with the
distribution and communication cables removed in the sections recommended by the facilities committee. The
Board and staff discussed the value of additional simulations and decided to update the simulation photographs at
650 South and at the intersection of Hwy 32/Hwy 40. Board and staff discussed EMF radius/levels of 138kv and
46kv lines. Jason asked staff members to give an update on our newest employees. Jake Parcell reported that
Colby Houghton was hired as the new IT Administrator and that we will be interviewing a substation technician
from Colorado for the substation opening. Harold Wilson reported that he had a lineman leave back in November
which opened a lineman spot and Brad Fryer came over from the substation department to fill it. Emily Brandt
reported that she hired Colton Martino as the new dispatcher and now has a total of five dispatchers. Jason also
reported that the recent storms took a toll outage-wise and that we had crews working 24-hour periods to restore
power.
7. Staff Reports. Bart Miller reported that the cost of street light write-offs for 2018, which included Midway,
Charleston, Heber and the County, totaled $87,692.05. Jason and the Board discussed photocell technology for
street lights. Jason mentioned that the photocells will work with our AMI metering system and may be of interest
for neighborhoods that are interested in being dark sky compliant. Bart Miller reported that Jake Wagstaff was
recently hired as the new accountant. Adam Long mentioned that the legislative session starts next week and that
he will track any legislation that may potentially affect the company. The Board and staff discussed 5G small cell
regulations. Jason stated that we should work together with the cities so that the city ordinances regarding small
cells are coordinated with our attachment agreements.
8. Closed Session to discuss the purchase, exchange or lease of real property.
Motion: Director Hardman moved to go into closed session to discuss the purchase or acquisition of real
property. Director Johnson seconded the motion. The motion carried with the following vote:
Board Chair - Kelleen Potter: Approve
Director - Celeste Johnson: Approve
Director - Brenda Kozlowski: Approve
Director - Jeff Smith: Excused
Director - Wayne Hardman: Approve
Director - Kendall Crittenden: Excused
Motion: Director Kozlowski moved to come out of closed session. Director Hardman seconded the
motion. The motion carried with the following vote:
Board Chair - Kelleen Potter: Approve
Director - Celeste Johnson: Approve
Director - Brenda Kozlowski: Approve
Director - Jeff Smith: Excused
Heber Light & Power Board Minutes 2019-01-23 -- Draft
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Director - Wayne Hardman: Approve
Director - Kendall Crittenden: Excused
With no further business to discuss, the Chair called for a motion to adjourn the meeting.
Motion: Director Kozlowski moved to adjourn the meeting. Director Hardman seconded the motion. The
motion carried with the following vote:
Board Chair - Kelleen Potter: Approve
Director - Celeste Johnson: Approve
Director - Brenda Kozlowski: Approve
Director - Jeff Smith: Excused
Director - Wayne Hardman: Approve
Director - Kendall Crittenden: Excused
Meeting adjourned.
Aime Bethers for Karly Schindler
Board Secretary
Contact Information
Beth Ann Schneider
Utah Wing of the Commemorative Air Force (CAF)
PO Box 1074, Midway, UT 84049
435.671.6441
About the Commemorative Air Force. The CAF is a nonprofit worldwide organization. The mission of the CAF is (a) education and preservation so that present and future generations will value and support the important contributions of military aviation in assuring our nation’s freedom, and (b) to honor those who participated in historical military aviation events leading to our nation’s freedom.
About the Utah Wing CAF Museum. The Utah Wing CAF Museum was established in 2009 by four Utah WWII veterans and local CAF members. The museum is dedicated to the restoration, preservation, and demonstration of the magnificent aircraft that dominated the skies during World War II. Our goal is to perpetuate in the memory and hearts of all Americans the spirit in which these great planes were flown for the defense of our nation.
In addition to historical aircraft the museum includes a number of supporting displays depicting the story of WWII and other historic military events and a complete library. The centerpiece of our museum is a Boeing PT-17 Stearman bi-plane (N1387V). Each year the museum hosts a number of special events including swing dance parties, veterans’ celebrations, parade and cemetery flyovers, and aircraft events.
The museum is located at the Heber City Airport and is open May—October.
What is a Stearman? Stearman aircraft were used during WWII as basic trainers for all branches of the military. Approximately 1000 remain in the air today. Most are personally owned. Stearman are open cockpit aircraft made of fabric, wood, steel, and aluminum. Because of the vintage nature of the Stearman and its delicate composition, these aircraft should be completely rebuilt and restored every 20 years.
Why is N1387V so Special? N1387V served as a WWII trainer in the Army Air Corps. After the war it was purchased and used as a crop duster. In 1980 it was fully restored. Then, while on a cross country flight to California (August 1986), the aircraft suffered a catastrophic crash in the trees of the Oquirrh Mountains just west of Salt Lake Valley. The Utah Wing of the CAF recovered the wreckage and it was officially assigned to the Utah Wing. The Utah Wing sent the wreckage to Idaho where it was completely rebuilt. In 1988 it took its maiden flight. Since then, hundreds have flown in N1387V; thousands have touched her or sat in her. She has thrilled crowds at countless airshows, flown over numerous parades and cemeteries and honored veterans of all branches of the military.
To make a museum donation. Make check payable to Utah CAF, mail to Beth Ann Schneider, PO Box 1074, Midway, Utah 84049. Thank you.
D-Day June 6, 2019 — 9am-4pm
North American T-6 honor flights and rides B-17 static display and tours Commemorative L-4 flights
Museum tours Danny Newell Swing Dance Band 11am-1pm
Food Truck WWII re-enactment WWII vehicles
Kids activities D-Day video program
Utah Wing of the Commemorative Air Force Museum D-Day Commemoration 75th Anniversary
Heber City Airport June 3-9, 2019 — 9am-4pm
B-17 Bomber
Static tours June 3-6 Rides June 7-9 480.462.2992 azcaf.org
BOOK YOUR RIDE!
North American T6 Rides June 3-10
801.719.8876 cafutahwing.org BOOK YOUR RIDE!
Proceeds benefit the Commemorative Air Force Museum
cafutahwing.org 435.709.7269
June 8, 2019 Pancake Breakfast 8-10am
Swing Dance 6-10pm Danny Newell Band
Sponsors: Redmond Real Salt, Lees Market, Ridley’s Market, Smiths, Brian
Lee Farmers Insurance, Signarama, Zions Bank, Ackerson Eye Care,
Walmart, Grand Valley Bank, Heber City Corporation, Diversify, UAMPS,
Tracer Barricades, Wasatch Wave, Walgreens, Point S
2018 HL&P Wholesale
Power Review
0
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2008 MAX
2008 MIN
2009 MAX
2009 MIN
2010 MAX
2010 MIN
2011 MAX
2011 MIN
2012 MAX
2012 MIN
2013 MAX
2013 MIN
2014 MAX
2014 MIN
2015 MAX
2015 MIN
2016 MAX
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2017 MAX
2017 MIN
2018 MAX
2018 MIN
2008-2018 Min & Max System Load(kW) by Month
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2018 System Load
2018 System Peak reached in July at 42.5 MW
2018 peak is a 7% increase from 2017 at 40 MW
2019 forecasted system peak is 43.7 MW
2018 total customers increased 8% from 2017
2018 total energy 190,662 MWh is 5% increase from 2017
2/19/2019 2018 Wholesale Power Year End Review. ebv2 2
Energy Resource PortfolioHydro36%
Market Pre-Scheduled
26%
Coal14%
Real-time Market11%
Natural Gas Gen10%
Wind2%
Geothermal/Solar1%
2018 Energy Resource Mix
38% of Wholesale Power was
renewable in 2018
Market Pre-Scheduled35%, 58.13
Hydro26%, 31.35
Coal13%, 39.41
Real-time Market11%, 44.16
Natural Gas Gen11%, 46.02
Wind3%, 76.57
Geothermal/Solar1%, 53.31
Resource Type by Percent of Power Costs with $/MWh
Renewables are 30% of the Cost
of Energy in 2018
38% of energy supplied to customers in 2018 was renewable
15% of energy supplied to customers was company owned on-
system generation
Natural Gas generation from HL&P owned units up 28% in 2018
Heber hydro generation down 35% in 2018
2/19/2019 2018 Wholesale Power Year End Review. ebv2 3
Load Duration
Load Duration Percent of time
kWh 2017 2018
0-15000 10% 5%
15001-28000 81% 84%
28001-44000 9% 10%
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1 1019 4 1322 7 16 1 1019 4 1322 7 16 1 1019 4 1322 7 16 1 1019 4 1322 7 16 1 1019 4 1322 7 16 1 1019 4 1322 7 16 1 1019 4 1322 7 16 1 1019 4 1322 7 16
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2017 2018
kWh
2017-2018 system Load
Total
Linear (Total)
-20%
0%
20%
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60%
80%
100%
120%
10
00
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00
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00
70
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29
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31
00
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00
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00
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kilowatt-hours
2012-2018 LOAD DURATION
2012 2013 2014 2015 2016 2017 2018
2/19/2019 2018 Wholesale Power Year End Review. ebv2 4
Month 2014 2015 2016 2017 2018
Jan 578,114$ 644,329$ 642,716$ 659,030$ 680,428$
Feb 525,383$ 510,248$ 562,718$ 527,585$ 621,809$
Mar 457,070$ 517,648$ 525,677$ 498,761$ 618,298$
Apr 463,956$ 487,633$ 474,429$ 510,834$ 516,444$
May 534,478$ 507,937$ 496,366$ 563,119$ 537,153$
Jun 564,350$ 647,480$ 658,471$ 676,621$ 697,639$
Jul 825,616$ 691,004$ 744,909$ 834,801$ 975,982$
Aug 604,598$ 684,649$ 717,331$ 782,639$ 840,725$
Sep 551,823$ 560,942$ 629,380$ 628,932$ 636,152$
Oct 470,609$ 525,311$ 538,107$ 554,534$ 707,691$
Nov 614,383$ 552,768$ 548,124$ 576,679$ 723,789$
Dec 633,419$ 640,591$ 735,621$ 712,170$ 772,916$
total cost 6,823,800$ 6,970,541$ 7,273,848$ 7,525,706$ 8,329,026$
$ increase 8% 2% 4% 3% 11%
total energy 161,273,714 168,604,892 178,019,919 182,139,654 190,662,081
kWh increase 0% 5% 6% 2% 5%
Monthly Total Energy Costs
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Wholesale Energy Market Prices and Historical Temperatures for HL&P
January 1, 2018 - February 7, 2019
$-
$1
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1-J
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-Dec
$/M
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2018 Daily Natural Gas Prices
2/19/2019 2018 Wholesale Power Year End Review. ebv2 6
Heber Light & Power Business Plan 2018
Business Drivers Priorities 2018 Objectives Metric/Indicator Target
Financial Strength • Debt • Expense/Revenue • Reserves • Risk Management • Rates
• Reduce Electric System Revenue Requirements
• Manage combined expenses and reserves at or lower than actual revenue
• Lower wholesale energy costs
• Actual to budget expenses YTD/Actual to Budget Revenues YTD
• Dollars < Budget
• >1.0%/ Result was expenses were 3% less than budget
• > $250,000/ Result was that wholesale costs were $223,000 less than what was budgeted.
• Grow Revenues • Increase Net Revenues • New Electric Sales
• >$50,000/ Result was revenues increased a little over $500,000 from 2017
Deliver Excellent Service • Corporate Integrity • Bill Quality • Customer Service • Service Quality • Bill Amounts/Rates
• Continue process necessary to build new POD substation and transmission line
• Work with all Stakeholders with public input on transmission line and POD sub.
• Project permitted End of year/ Project was not permitted by the end of the year.
• Adapt to Customers Changing Demands
• Find additional affordable Carbon Free energy for the Portfolio
• Develop new products/services/rates
• Re-Draft Integrated Resource Plan
• New Products/ Services/Rates Identified and prioritized for implementation
• Before year end/ Result was a long term PPA with Patua geothermal/solar
• Before year end/ Work needs to continue on Clear Peaks program
Develop Engaged and Proficient Employees
• Safety • Security • Productivity • Inclusion • Compensation • Professionalism • Opportunity
• Promote a Safe and Secure Workplace
• Eliminate Recordable Injuries
• Eliminate Motor Vehicle Collision
• Measured in man hours worked in 2018
• Measured in incidents in 2018
• 0 Incidents/ Result 0 incidents
• 0 Incidents/ Result 0 incidents
• Obtain APPA’s RP3 Award
• Meet the Safety, Reliability and Employee development criteria for RP3
• RP3 application submittal
• April 2018/ Result HL&P received the APPA RP3 platinum award
• Improve Team Effectiveness
• Empower and train personnel so higher levels of performance can be achieved
• Training complete • Year end / Good progress was made on this goal as we had employees increase their responsibilities
Heber Light & Power Business Drivers 2019
Business Drivers Priorities 2019 Objectives Metric/Indicator Target
Financial Strength • Debt • Expense/Revenue • Reserves • Risk Management • Rates
• Complete COS study, Impact fee study and rate study
• Implement new energy rates and impact fees that are fair and competitive and still increase net revenues to required levels
• Recover at least 50% of qualified costs with new impact fees. Keep overall rate increase below 8%
• Completed on or before 9/01/19
• Complete the financing needed for capital plan
• Obtain the funds necessary for the portions of the capital plan that are vital to the business.
• Have project cost estimates completed by April 1, 2019, rates and impact fees approved by June 1 2019
• Have financing complete on or before 10/1/2019
Deliver Excellent Service • Corporate Integrity • Bill Quality • Customer Service • Service Quality • Bill Amounts/Rates
• Improve all customer related processes through all departments
• Verify that processes are correct. Communicate better through the IVUE system. Identify process or policy that need improvement
• Quarterly assessment of billing errors, service order problems, street light problems, work orders and outage and quality of service data
• All identified process or policy problems corrected to entire teams satisfaction.
• Adapt to Customers Changing Demands
• Evaluate Future Energy Needs- Have Open Discussions about IRP
• Continue to develop the Clear Peaks program to include Energy Efficiency
• Re-Draft Integrated Resource Plan
• New website and Energy Efficiency program implanted
• On or Before 9/01/19
• On or before 7/01/19
Develop Engaged and Proficient Employees
• Safety • Security • Productivity • Inclusion • Compensation • Professionalism • Opportunity
• Promote a Safe and Secure Workplace
• Eliminate Recordable Injuries
• Eliminate work related interruptions on system
• Measured in man hours worked in 2019
• Measured in incidents in 2019
• 0 Incidents
• 0 Incidents
• Improve Employee use of the IVUE system
• Invest the time and resources so that all employees are trained and using the IVUE system for all related responsibilities
• Hold Quarterly IVUE use assessments with department managers
• Training and permission Process approved by GM and implemented
• Time between Meetings
• Implemented by 2/1/19
• > 15 Weeks
• Improve Senior Leadership Team Effectiveness
• Foster Trust and teamwork among senior leadership
• All Managers Attend some form of leadership training.
• Completed by 12/31/19