KyMEA
October 26, 2016 10:00 AM
Kentucky Municipal Energy Agency
A. MEETING OPENING
Discussion

Ed Fortner, director for Berea was present for the meeting. technical issues with the eMeeting software did not allow his name to be added to the role during the meeting.

B. AGENDA REVIEW AND MODIFICATIONS
Discussion

No changes allowed as this is a special meeting.

C. PERFORMANCE REPORTS AND MODIFICATIONS
C.1. Executive Committee Report
Discussion

None

C.2. AR Projects Committee Report
Chris Melton
Discussion

None

C.3. Financial Report
Attachments
Actions Taken

Motion Passed:  accepot passed with a motion by Josh Callihan and a second by Mike Withrow.

D. ITEMS PRESENTED FOR ACTION AT THIS MEETING
D.1. Updated Cost Sharing Plan for Implementation Activities and Determination of Weighted Votes for Agency Members
Fred Haddad, Brown Thornton, and Tom Trauger
Rationale

An updated cost allocation plan was reviewed with the Board at the September meeting.  Terry Naulty asked for time to provide input on that draft.  A revised cost allocation plan has been prepared based on input from Terry.  The plan document highlights the changes made in response to Terry’s input and includes comments that provide explanations of the changes.

Attachments
Actions Taken

Motion Passed:  Approve the Updated Cost Sharing Plan for Implementation Activities and Determination of Weighted Votes for Agency Members passed with a motion by Vent Foster and a second by Mike Withrow.

Discussion

Fred Haddad led a discussion on the adjusted cost sharing plan and reviewed the proposed changes individually.

E. DISCUSSION AGENDA
E.1. PPA and Transmission Arrangements Update
Fred Haddad, Charlie Musson, Brown Thornton
Rationale

We anticipate updating the Board regarding the following topics:

 

  1. BREC’s progress in accomplishing conditions precedent

    1. Filing before the PSC

    2. (RUS Approval has already been received)

 

  1. Status Report regarding transmission

    1. LGE/KU transmission system

    2. MISO transmission system

    3. EKPC (or PJM) transmission system (for Falmouth)

    4. Updated load forecast being prepared to meet requirements under the LGE/KU OATT and for power supply planning


Discussion

Fred Haddad led a discussion and presented an update of BREC's progress in accomplishing conditions precedent. it is thought that we could see approval from the PSC as early as December.


Brown Thornton led a discussion and presented a status report regarding transmission service.

E.2. Proposed Contracts pertaining to Existing Member Resources
Tom Trauger, Fred Haddad, and Brown Thornton
Rationale

In accordance with the updated Project Implementation Plan reviewed with the Board in August and September, we plan to discuss and seek feedback from the Board regarding a first draft of the contracts between KyMEA and each Member for KyMEA to use Member owned resources as part of the AR Portfolio and to provide credits to the applicable Member based on the value KyMEA realizes by that use.

Background Information:

The AR Contract provides three Options pertaining to Member resources.  To facilitate KyMEA’s continued portfolio planning, the Members need to determine how to proceed with regard to the existing SEPA and Paris diesel resources.

The three options provided for in the AR Contract include:

 

      1. KyMEA will use Member resources and provide credits to the applicable Member based on the value KyMEA realizes by that use (i.e., the costs KyMEA avoids, plus any net revenue KyMEA receives from 3rd party sales); 

      2. KyMEA will market the output of the resource on the Member’s behalf and provide credits based on the net revenues received; or

      3. Any Member may work with another party to market the output of the resource.

The draft contract being reviewed would implement Option 1 above.


Discussion

Tom Trauger provided a presentation and led a discussion on the proposed contracts pertaining to existing all-requirements member resources. The SEPA asset was used as an example. A draft contract and possible provisions were reviewed. Plan is to bring a more refined contract back to the board for more discussion next month.

E.3. Updated Implementation Plan and Near Term Task List
Fred Haddad
Rationale

The Advisory Team is working to implement the Updated Implementation Plan reviewed with the Board in August and September.  A near term Task List has been prepared to organize our efforts and communicate with the Board about the ongoing activities.

Attachments
Discussion

Fred Haddad led a discussion and provided a presentation on the updated implementation plan and the near term task list. No clarifications were suggested by the members.

F. CONSENT AGENDA
F.1. Approve Minutes of September 22, 2016 Regular Meeting
Attachments
Actions Taken

Motion Passed:  Approve minutes of September 22, 2016 passed with a motion by Josh Callihan and a second by Philip King.

G. UPCOMING MEETINGS
Vent Foster
Rationale

The KyMEA Board of Directors shall hold its regular meetings on the fourth Thursday of each month, except for the months of November and December when the regular meeting shall be held on the third Thursday. 

The regular meetings shall convene and commence at 10:00 AM Central time on said dates.

The regular meetings shall held at the Bowling Green Municipal Utility located at 801 Center St, Bowling Green, KY 42101 in Bowling Green, Kentucky or at such location to be designated by the Board.

November 16, 2016 Wednesday 10:00AM Central Time, Bowling Green Municipal Utility

December 21, 2016 Wednesday 10:00AM Central Time, Bowling Green Municipal Utility

January 26, 2017 Thursday 10:00AM Central Time, Bowling Green Municipal Utility


Discussion

Vent Foster discussed the November and December meeting dates on Wednesdays to avoid holidays as provided for in the by-laws. It was suggested that the Secretary investigate aligning the January 2017 KyMEA meeting with the January 2017 KMUA meeting in Frankfort.

H. CLOSED SESSION PURSUANT TO KRS 61.810(1)(k) and 61.878(1)(c) allow for closed session where discussions regarding records or information disclosed to the agency or required to be disclosed to the agency as confidential or proprietary would if disclosed by the agency provide an unfair advantage to competitors of the entity disclosing such information
Tom Trauger, Fred Haddad, and Brown Thornton
Rationale

CLOSED SESSION PURSUANT TO KRS 61.810(1)(k) and 61.878(1)(c) allow for closed session where discussions regarding records or information disclosed to the agency or required to be disclosed to the agency as confidential or proprietary would if disclosed by the agency provide an unfair advantage to competitors of the entity disclosing such information.

Actions Taken

Motion Passed:  Approval to enter into Closed Session pursuant to KRS 61.810(1)(k) and 61.878(1)(c) allow for closed session where discussions regarding records or information disclosed to the agency or required to be disclosed to the agency as confidential or proprietary would if disclosed by the agency provide an unfair advantage to competitors of the entity disclosing such information passed with a motion by Vent Foster and a second by Mike Withrow.

I. RETURN TO OPEN SESSION
Actions Taken

Motion Passed:  Approval to return to Open Session passed with a motion by Philip King and a second by Vent Foster.

J. ITEMS PRESENTED FOR ACTION AS A RESULT OF CLOSED SESSION
J.1. Consider Approval of Actions Necessary to Carry Out Closed Session Directives.
Discussion

No actions presented or needed.

K. Recess KyMEA for Purpose of Convening the AR Project Committee
Rationale

Recess KyMEA for Purpose of Convening the AR Project Committee.

Discussion

AR Project Committee had no pending business thus no committee meeting was called.

L. Convene KyMEA Meeting
Rationale

Convene KyMEA Meeting.

Discussion

N/A

M. ADJOURNMENT
Actions Taken

Motion Passed:   passed with a motion by Vent Foster and a second by Josh Callihan.