KyMEA
March 28, 2019 10:00 AM
Kentucky Municipal Energy Agency
A. MEETING OPENING
A.1. Guest Introductions
Ron Herd
Rationale

The Chairman recognized any guests attending the meeting. The Chairman mentioned that it was good to have our guests, Jack Sullivan, Tom Hopkins, and Fred Haddad joining us today.

B. REPORTS
B.1. Financial Report
Heather Overby
Rationale

This was an update from the CFO on the previous month's financial reports.

Attachments
Actions Taken

Motion Passed:  Motion to approve the presented financial reports from the prior month passed with a motion by Mike Withrow and a second by Josh Callihan.

C. CONSENT AGENDA
C.1. Approve Minutes
Ron Herd
Rationale

Meeting minutes from February 28, 2019 were presented and approval from the KYMEA Board was requested.

Attachments
Actions Taken

Motion Passed:  Motion to approve the Meeting minutes from February 28, 2019 passed with a motion by Josh Callihan and a second by Chris Melton.

D. DISCUSSION AGENDA
D.1. Update from KYMEA's CEO Regarding Ongoing Activities
Doug Buresh
Rationale

This was an update from Doug Buresh on activities during the past month and planned for the coming month.

Attachments
D.2. Delivery Point Metering Transition Plan
Rob Leesman & Brown Thornton
Rationale

This was an update regarding delivery point metering and communications progress. Testing systems to begin in January 2019 for providing and billing for service in May 2019.

 

Key Tasks

  • Status of METER DATA SYSTEM
  • Update regarding Delivery Point equipment and installation progress
  • Presentation of Meter dashboards and Rob’s Schneider training
  • Meter Installations have been completed

Attachments
D.3. Arrangements for Falmouth Transmission
Tom Trauger and Brown Thornton
Rationale

Special arrangements are needed for power to be transmitted to Falmouth. KYMEA had proposed that the arrangements currently in place for power provided by KU to Falmouth be continued. 

 

Falmouth’s petition for a declaratory order to confirm availability of service under the existing terms was rejected by FERC in December 2018. Falmouth filed a request for rehearing, principally to keep the docket open in case emergency action by FERC is needed to meet the May 1, 2019 transition date.

 

KYMEA is proceeding with arrangements to obtain both power supply and network transmission service for Falmouth from PJM in time to meet the May 1 deadline. Following the Board’s approval in February, KYMEA executed a Wholesale Distribution Service Agreement with LG&E/KU, under which service over the five-mile LG&E/KU line connecting the EKPC/PJM grid to the Falmouth substation will be provided beginning May 1.

Discussion

No Board action is expected to be required for this item.

D.4. Filing by LGE/KU re Depancaking Agreement
Tom Trauger
Rationale

Since litigation is ongoing, we did not have an open session regarding the depancaking results of the March 21, 2019 FERC ruling. 

E. ITEMS PRESENTED FOR ACTION AT THIS MEETING
E.1. BREC Amendment
Doug Buresh and Rob Leesman
Rationale

The board was presented with a couple of minor changes to the BREC contract. Board action to approve the amended change was requested.

Attachments
Actions Taken

Motion Passed:  Motion to approve the BREC amendment passed with a motion by Chris Melton and a second by Josh Callihan.

E.2. Enterprise Risk Management Policy
Doug Buresh and Rob Leesman
Rationale

The board was presented with the Risk Management policy to review. Board approval of the policy was requested.

Attachments
Actions Taken

Motion Passed:  Motion to approve the Enterprise Risk Management Policy passed with a motion by Chris Melton and a second by Mike Withrow.

Motion Passed:  Motion to appoint Gary Zheng and Tim Lyons as members on the Board Risk Oversight Committee (BROC) Members passed with a motion by Josh Callihan and a second by Mike Withrow.

Motion Passed:  Motion to appoint Gary Zheng as the Chairman of the Board Risk Oversight Committee passed with a motion by Ronald Herd and a second by Josh Callihan.

E.3. Enabling Agreements
Doug Buresh and Rob Leesman
Rationale

The board was presented with agreements that will enable power and energy transactions with multiple market participants. These types of agreements are often referred to as “Enabling Agreements” because they establish a framework for future transactions, but do not commit either party to a specific transaction.

 

KYMEA expects that transactions agreed to in the future under the Enabling Agreements may provide additional options for KYMEA to optimize the value of its existing portfolio of resources. For instance, during the first three years, KYMEA would optimize the value of surplus energy sales from the AR Portfolio by either making sales into the MISO Day-Ahead or Real-Time energy markets or by making sales under Enabling Agreements with other market participants.

 

Staff requested board approval for Doug Buresh to sign the agreements.

 

The Enabling agreements are subject to confidentiality and will not be published to the portal.

Attachments
Actions Taken

Motion Passed:  Motion to authorize the KYMEA President and CEO to enter into the presented Enabling Agreements passed with a motion by Mike Withrow and a second by Chris Melton.

Motion Passed:  Motion to authorize the KYMEA President and CEO to sign Asset and Sales Agreement for Purchase of PT/CT for Falmouth passed with a motion by Josh Callihan and a second by Chris Melton.

F. Closed Session Authorization for March 28, 2019 KYMEA Board Meeting Approval to enter into Closed Session pursuant to KRS 61.810(1)(c) for the purpose of: (i) discussing proposed, potential or pending litigation relating to KYMEA and its members relating to transmission issues relating to the LGE/KU Depancaking Agreement. KRS 61.810(1)(c) allows for closed session for the purpose of discussing proposed, potential and pending litigation relating to the agency.
Charlie Musson
Rationale

This session will involve:

Approval to enter into Closed Session pursuant to KRS 61.810(1)(c) for the purpose of:

  1. discussing proposed, potential or pending litigation relating to KYMEA and its members relating to transmission issues relating to the LGE/KU Depancaking Agreement.

KRS 61.810(1)(c) allows for closed session for the purpose of discussing proposed, potential and pending litigation relating to the agency. 

Attachments
Actions Taken

Motion Passed:  Motion to enter into closed session passed with a motion by Mike Withrow and a second by Kevin Frizzell.

G. RETURN TO OPEN SESSION
Actions Taken

Motion Passed:  Motion to return to open session passed with a motion by Chris Melton and a second by Mike Withrow.

H. ACTIONS RELATED TO MATTERS DISCUSSED IN CLOSED SESSION
Charlie Musson
Rationale

No action was needed.

I. PUBLIC COMMENTS
Ron Herd
Rationale

This is an opportunity for members of the public to provide input to the KYMEA Board. Comments will be limited to 5 minutes per speaker.

 

J. UPCOMING MEETINGS
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 Wednesday.

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

The regular meetings shall be held at the KYMEA Board Room, 1700 Eastpoint Pkwy, Suite 220, Louisville, Kentucky.

The next KYMEA board meeting will be a Special Meeting. It will be held on Wednesday, April 24th at 1:00 pm Eastern time at the Berea City Hall at 212 Chestnut Street, Berea, KY 40403.

 


K. OTHER BUSINESS
L. ADJOURNMENT
Actions Taken

Motion Passed:  Motion to adjourn the KYMEA board meeting passed with a motion by Mike Withrow and a second by Chris Melton.