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Board of Directors Regular Meeting
2000 East Horsetooth Road, Fort Collins, Colorado
Thursday, April 28, 2016, 9:00 a.m.
Call to Order
1) Consent Agenda
a. Minutes of the Regular Meeting of March 31, 2016
b. Fort Collins Substation IGA
2) Items Removed from Consent Agenda
3) Public Comment
Motion to Approve
Resolution 10-16
Other Action Items
4) Revision to TARIFF— SCHEDULE 4:
Wholesale Transmission Service
5) Acceptance of 2015 Annual Report
6) BKD Contract Extension
Management Reports
7)
8)
9)
10)
Legal & Governmental Affairs Report
March 2016 Operating Report
March 2016 Financial Report
Management Report
a. Debt Financing Recap
b. Western IRP Requirement
c. Water Discussion
Roundtable
Adjournment
Resolution 11-16
Motion to Accept
Motion to Accept
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2016 BOARD MEETING PLANNING CALENDAR
MAY 26, 2016
AUGUST 25, 2016
Regular Board of Directors Meeting
• Integrated Resource Plan (IRP)
Update
• Synopsis of State Legislation of
Interest
• Water Discussion
Regular Board of Directors Meeting
• Wholesale Rate Forecast
• Clean Power Plan Update
• Water Discussion and Draft Water
Policy
Retirement Committee Meeting
Retirement Committee Meeting
JUNE 10 – 15, 2016
APPA National Conference
Phoenix, AZ
www.publicpower.org
JULY 28, 2016
Regular Board of Directors Meeting:
• Retirement Committee Report
• Energy Efficiency Program Update
• Community Solar Program
• Water Discussion
Calendar subject to change. Used for planning purposes only.
SEPTEMBER 29, 2016
Regular Board of Directors Meeting
• Retirement Committee Report
• 2017 Proposed Annual Budget Work
Session
• Demand Response Pilot Update
• 2017 Draft Strategic Plan
• Potential Water Policy Approval
OCTOBER 27, 2016
Regular Board of Directors Meeting
• 2017 Proposed Annual Budget Update
(first public hearing)
• 2017 Proposed Rate Tariff(s)
• 2017 BKD Audit Plan
• Rawhide rail contract
• Clean Power Plan Update
Last updated: April 2016
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2016 BOARD MEETING PLANNING CALENDAR
NOVEMBER 18, 2016
No Board of Directors Meeting
Retirement Committee Meeting
DECEMBER 8, 2016
Regular Board of Directors Meeting
• Retirement Committee Report
• 2017 Annual Budget Review (second
public hearing and adoption)
• 2017 Proposed Board of Directors
Regular Meeting Schedule
• 2017 Strategic Plan (Approval)
• Integrated Resource Plan (IRP)
Update
Calendar subject to change. Used for planning purposes only.
Last updated: April 2016
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2016 Board of Directors
Term Expiration
Town of Estes Park
P.O. Box 1200, Estes Park, Colorado 80517
Mayor-Elect Todd Jirsa (to be sworn in April 26, 2016)
April 2020
Reuben Bergsten—Vice Chairman, Board of Directors
December 2019
City of Fort Collins
P.O. Box 580, Fort Collins, Colorado 80522
Mayor Wade Troxell
Mayor Pro Tem Gerry Horak
April 2017
December 2016
City of Longmont
350 Kimbark Street, Longmont, Colorado 80501
Mayor Dennis Coombs
November 2017
Tom Roiniotis—Chairman, Board of Directors
December 2018
City of Loveland
500 East Third Street, Suite 330, Loveland, Colorado 80537
Mayor Cecil Gutierrez—Secretary, Board of Directors
November 2017
Steve Adams
December 2017
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Vision, Mission, and Values
Vision: As a respected leader and responsible energy partner, improve the quality of
life for the citizens served by our owner communities.
Mission: Provide safe, reliable, environmentally responsible, and competitively priced
energy and services.
Values:
•
Safety – Working safely and protecting the public, our employees, and the assets
we manage is non-negotiable.
•
Integrity – Being ethical and holding ourselves accountable to conduct business in
a fair, honest, open, compliant, and environmentally responsible manner is at the
core of what we do.
•
Customer Service – Providing quality service at a competitive price while being
responsive to our owners’ needs creates added value and improves customer
satisfaction.
•
Respect – Encouraging constructive dialogue that promotes a culture of
inclusiveness, recognizes our differences, and accepts varying viewpoints will lead
us to optimal solutions for even the most difficult challenges.
•
Operational Excellence – Engaging employees to strive for excellence and
continuous improvement ensures that we provide reliable service while managing
costs and creating a rewarding work environment.
•
Innovation – Supporting the development of technologies to promote the efficient
use of electricity, protect the environment, and create a diversified energy supply
portfolio mitigates risk and creates opportunities.
•
Sustainability – Maintaining financial integrity, minimizing our environmental
impact, and supporting responsible economic development in our owner
communities ensures the long-term viability of the organization and the
communities we serve.
2000 East Horsetooth Road • Fort Collins, Colorado 80525-5721
970-226-4000 • www.prpa.org
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Regular Meeting Minutes of the Board of Directors
2000 East Horsetooth Road, Fort Collins, Colorado
Thursday, March 31, 2016
ATTENDANCE
Board Members
Representing Estes Park: Mayor Bill Pinkham
Representing Fort Collins: Mayor Wade Troxell 1 and Mayor Pro Tem Gerry Horak 2
Representing Longmont: Mayor Dennis Coombs 3 and Tom Roiniotis
Representing Loveland: Mayor Cecil Gutierrez and Steve Adams
Platte River Staff
Jackie Sargent (General Manager/CEO)
Joe Wilson (General Counsel)
Jason Frisbie (Chief Operating Officer)
Dave Smalley (Chief Financial & Risk Officer)
Karin Hollohan (Chief Administrative Services Officer)
Deb Schaneman (Chief Compliance Officer)
Pete Hoelscher (Chief External Affairs and Customer Relations Officer)
Heather Banks (Fuels & Water Manager)
Shelley Nywall (Controller)
Julie Depperman (Treasury Manager)
Baird Cook (Facilities Project Coordinator)
Jeff Menard (Facilities and Fleet Supervisor)
Paul Davis (Customer Services Manager)
Angela Walsh (Executive Assistant)
Becky Avery (Internal Audit Manager)
Guests
Kevin Gertig (Fort Collins Utilities Executive Director)
Tim McCollough (Fort Collins, Light and Power Operations Manager
Brieana Reed (Loveland, Senior Electrical Engineer)
Gretchen Stanford (Loveland, Customer Relations Manager)
Dan Hartman (Managing Director, PFM) 4
Kurt Kaufman (Bond Counsel, Sherman & Howard) 5
Rob MaCoy (BKD CPA & Advisor)
Jodie Cates (BKD)
Anna Thigpen (BKD)
Peter O’Neil (Chairperson, Fort Collins Energy Board)
Rick Coen (Namaste Solar)
Philip Hartman (Steamtech, Inc.)
Jacy Marmaduke (Environmental reporter, The Coloradoan)
Arrived at 9:02 a.m. and dismissed himself at 11:37 a.m.
Called in at 9:57 a.m. and dismissed himself at 10:30 a.m.
3 Called in at 9:00 a.m. and dismissed himself at 10:30 a.m.
4 Attended by conference call
5 Attended by conference call
1
2
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Regular Board Meeting Minutes: March 31, 2016
CALL TO ORDER
Chairman Roiniotis called the meeting to order at 9:00 a.m. A quorum of Board Members was
present and the meeting, having been duly convened, was ready to proceed with business.
ACTION ITEMS
Due to an early departure request by Mayor Troxell a revised agenda including the Fort Collins
Study Request was circulated after the original agenda was distributed. Director Pinkham
moved to accept the revised agenda as provided. Director Troxell seconded, and the motion
carried 6-0.
(1)
Consent Agenda
a. Approval of the Regular Meeting Minutes of February 25, 2016
b. Fire Service Mutual Aid IGA’s Resolutions 05-16 and 06-16
Director Gutierrez moved to approve the Consent Agenda as presented. Director Pinkham
seconded, and the motion carried 6-0.
(2)
Items Removed from Consent Agenda
None.
(3)
Public Comment
Peter O’Neil, chairman of the Fort Collins Energy Board, stated his support for the Fort Collins
Energy Policy and requested support from the other owner municipalities to help meet Fort
Collins’ goals and the adoption of similar goals for their utilities.
(4)
Retirement Committee Report
(presenter: Director Adams)
Director Adams reported the Retirement Committee met on Thursday, February 25. The
minutes for the meeting are provided in the Board meeting packet starting on page 35.
(5)
Foothills (FEMA) Solar Project Approval
(presenter: Joe Wilson)
Joe Wilson, general counsel, provided the Board with background information on the hydro
generation unit destroyed during the 2013 flood. An update on the project replacing the hydro
generation unit with a solar facility is highlighted in the Board packet starting on page 37. Staff
recommended the Board acknowledge that Loveland can replace the 900kW lost capacity and
to take advantage of the 1 percent self generation allowance created by the 2010 power supply
agreement with Platte River. Director Adams provided additional information on FEMA’s support
of the solar project.
Director Pinkham moved that the Board acknowledge that Loveland may replace its
grandfathered hydropower facility, which was rated at 900kW and which was lost during the
2013 flood, with a portion of the capacity being constructed at the Foothills Solar Project, and
that the output of 2.5MW of capacity at the Foothills Solar Project will reduce the allrequirements obligation of Loveland under its Power Supply Agreement with Platte River.
Director Gutierrez seconded.
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Regular Board Meeting Minutes: March 31, 2016
Further discussion between Directors and Loveland staff ensued. Brieana Reed, senior
electrical engineer, was available to answer questions regarding the project. Platte River staff is
fully engaged and supportive of this project and sees this as an opportunity. Mayor Gutierrez
reminded the Board that time is of the essence working with FEMA and deadlines were
approaching, and Loveland has an opportunity that needs to be taken advantage of now. With a
motion and a second on the floor, the motion carried 6-0.
(6)
Debt Financing Authorization
(presenter: Dave Smalley/Kurt Kaufmann)
Dave Smalley, chief financial and risk officer, provided an update on the Series JJ Bond issue
documents previously discussed at the February Board meeting and referred to Joe Wilson,
general counsel, and Kurt Kaufmann, bond counsel with Sherman & Howard, to review the
documents provided in the Board packet starting on page 39.
a. Eleventh Supplement Resolution 07-16
Mr. Kaufmann provided an overview of the documents associated with the bond issue,
highlighting the main details to the Series JJ bond issue. He described the process of
bond issuance and the advantages of refunding the Series HH bonds.
Director Troxell moved to approve Resolution 07-16; the Eleventh Supplemental Power Bond
Resolution as presented. Director Adams seconded, and the motion carried 6-0 with a roll call
vote; Director Coombs by phone, Director Troxell, Chairman Roiniotis, Director Pinkham,
Director Gutierrez and Director Adams.
(7)
HQ Campus Decision
(presenter: Karin Hollohan)
Karin Hollohan, chief administrative services officer, reviewed the previous Board conversations
regarding the HQ Campus discussions, land purchasing options and staff recommendations for
moving forward with Alternate C, building on a green field site. Staff requested the approval of
the Board resolution delegating authority to the general manager to move forward with the land
purchase for the purpose of building a new headquarters campus within the city of Fort Collins.
Platte River’s 2016 budget did not include the land purchase, only the design and engineering
allocation. Once the land purchase has been completed and the associated expenses involved
are known, staff will return to the Board with a contingency fund transfer request at a future
Board meeting. Staff reassured the Board that continual updates will be provided throughout the
project at future utility director meetings and Board meetings. Staff commended the Board for
their engagement and participation throughout the process for this project. Jackie Sargent,
general manager and CEO, added that approval of this phase allowing the project to move
forward does not necessarily mean that the headquarters campus gets built. There will be
opportunity along the way for input from the Board and further approvals required from the
Board before Platte River constructs facilities. There will be ample opportunity for the Board to
continue to weigh in as the project moves forward.
Director Coombs moved to approve Resolution 08-16 authorizing the land purchase as
presented. Director Pinkham seconded, and the motion carried 6-0.
(8)
2015 BKD Audit Report
(presenter: Rob MaCoy-BKD)
Rob MaCoy, BKD CPA & advisor, gave an overview of the Financial Audit Report provided as a
separate handout and also posted on the Platte River website.
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Regular Board Meeting Minutes: March 31, 2016
Director Pinkham moved to accept the 2015 BKD Audit Report as presented. Director Troxell
seconded, and the motion carried 6-0.
a. Fee Proposal and Contract Extension
Deb Schaneman, chief compliance officer, introduced the fee proposal and contract
extension option to the Board. The Board is responsible for retaining our external
auditors and the external auditors report directly to the Board. The Board can decide to
extend the contract with BKD or seek proposals. No decision was required by the Board
at the March meeting. Jody Cates also with BKD presented the fee proposal and
contract extension, starting on page 199 of the Board packet, for consideration.
A director asked the number of available firms in the market capable of doing utility
audits. BKD staff responded that the number is limited to firms that are capable of
handling government utility audits. Another director requested that Platte River staff
provide additional analysis to the Board for consideration at the April meeting.
(9)
Fort Collins Study Request
(presenter: Mayor Troxell)
Mayor Troxell presented a request by the City of Fort Collins that Platte River explore (via a
Platte River study) a separate electricity supply structure and revenue requirement for the City
of Fort Collins (a more diversified resource mix) to help achieve the City’s Climate Action Plan
(CAP) goals. The City of Fort Collins is willing to pay Platte River for the study; however, as a
new structure would impact all Platte River owners, it was suggested that the associated cost be
incurred by Platte River.
Ms. Sargent shared that this is an opportunity for Platte River. The results will help to provide
information on how to move forward and discuss rate impacts in a transparent manner. This
approach gives Fort Collins information to determine how best to meet their CAP goals, and at
the same time allows the other Platte River owner municipalities the information they need to
meet their objectives. In the end, establishing different resource supplies and rate structures
may create greater flexibility for our owner communities. Staff suggests that Platte River
conduct the study, absorb the costs, and share the results with all owner municipalities. A
project charter to complete the analysis will be developed for review at a future meeting.
Discussion among the directors and staff continued regarding Platte River taking on the costs
and responsibilities to conduct the study, the differences in the owner municipalities and the
value of sharing the data with all the municipalities.
Director Horak moved to authorize Platte River to begin developing a project charter with city
staffs for review by the Board at a later date. Director Coombs seconded, and the motion carried
7-0.
10:31a.m. - 10-minute break
(10)
Legal & Governmental Affairs Report
(presenter: Joe Wilson)
Mr. Wilson, general counsel, briefed the Board on the current legal and governmental affairs.
The full report is within the Board packet starting on page 205.
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Regular Board Meeting Minutes: March 31, 2016
Director Troxell added, for information purposes only, that Fort Collins City Council signed onto
the Amicus Curiae prepared by the National League of Cities in support of the Clean Power
Plan with a 5-2 vote.
(11)
February Operating Report
(presenter: Jason Frisbie)
Mr. Frisbie, chief operating officer, reviewed the February operational budget variances and
noted the full report is in the Board packet starting on page 211. Mr. Frisbie handed out
corrected pages 216 and 217 of the Operating Report and noted the original Dispatch Cost
charts did not include combustion turbine costs.
(12)
February Financial Report
(presenter: Dave Smalley)
Mr. Smalley, chief financial & risk officer, highlighted the financial budget variances for
February. The full report is in the Board packet starting on page 219.
(13)
Management Report
(presenter: Jackie Sargent)
Ms. Sargent highlighted the safety, environmental, legal, operational, and financial updates that
were covered in the Board packet starting on page 229. In addition, the following items were
discussed.
Platte River is partnering with CSU and their student interns who attend their Occupational and
Environmental Health Symposium class engaging them in exercises to provide the trainees with
real experiences while working on a diverse team addressing actual health, safety, and wellness
issues. The final product for the community partner is a report with recommendations on how to
improve safety, health, and wellness at the facility. Platte River is looking forward to receiving
that report.
An update was provided on the physical security at all substations, focusing on the two incidents
of damage to the Dixon Creek substation walls. Fort Collins has already improved the
intersection markings and signage. Platte River appreciates the prompt response and will
continue working together with the City on other ideas for improving the physical security
perimeter in order to prevent future breaches.
Staff is moving forward with the coal combustion residuals rule implementation. Data is being
collected and will be used to develop an updated groundwater monitoring plan. If modifications
to the bottom ash settling ponds are necessary – which could include moving to a dry ash
handling system - Platte River will include projects in the budget as appropriate.
Within the context of rate forecasts, there remains a great deal of uncertainty about the CPP.
Staff continues to analyze the various scenarios as information becomes available. Rate
impacts for future years will also depend on what the municipalities decide to do with Platte
River’s generation portfolio as a result of Fort Collins’ study request.
Energy Efficiency programs and customer participation has exceeded Platte River’s
expectations this year and the commitment of rebate funding is running ahead of plans. Staff
may need to request additional funding in the future.
Regarding the Windy Gap Firming Project, on March 28 Northern Water received the 401
Certification from the Colorado Water Quality Control Division for the Windy Gap Firming
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Regular Board Meeting Minutes: March 31, 2016
Project. This is the state water quality certification under the federal Clean Water Act. The letter
to the Municipal Sub-district stated that “The Division concludes that there is reasonable
assurance that the project will be conducted in a manner that complies with all applicable water
quality requirements...and therefore this letter shall serve as official notification that the Division
is issuing a Conditional Certification….” This permit comes after 12 years of work by Northern
staff on the water quality component of the project. This is a significant milestone in the project,
and the Army Corps of Engineers can now issue a federal 404 permit - the final permit needed
to move forward with construction of Chimney Hollow Reservoir.
a.
Community Solar Update
(presenter: Paul Davis)
Paul Davis, customer services manager, provided an update on the community solar
project process. A draft of an intergovernmental agreement (IGA) was sent out this week
for review by city staffs. Board approval will be requested in April. Work continues on the
project charter, which will identify the scope of work, the business need and justification,
program timeline, and what staff resources will be needed. Staff is re-evaluating the
value of solar calculation for communities and future projects using hour- by-hour data.
b.
Water Resources Reference Document
(presenter: Heather Banks)
Heather Banks, fuels and water manager, gave a presentation on the sixth draft of the
water resources reference document and the purpose of the document. Platte River staff
will be working with city staffs to finalize the document. It will be a living document, being
updated once a year, for use as a valuable reference for the future.
Roundtable
Board Members shared the latest news from the Municipalities.
ADJOURNMENT
With no further business, the meeting adjourned at 12:03 p.m. The next regular Board meeting
is scheduled for Thursday, April 28, at 9:00 a.m. in the Platte River Power Authority Board
Room, 2000 East Horsetooth Road, Fort Collins, Colorado.
AS WITNESS, I have executed my name as Assistant Secretary and have affixed the corporate
seal of the Platte River Power Authority this
day of
, 2016.
Assistant Secretary
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Memorandum
Date:
April 20, 2016
To:
Board of Directors
From:
Jackie A. Sargent, General Manager/CEO
John Collins, Manager of Engineering and Transmission Services
Subject:
Resolution approving Intergovernmental Agreement for Substation Maintenance and
Engineering Support Services between the City of Fort Collins and Platte River Power
Authority
The City of Fort Collins has asked to retain Platte River to perform substation maintenance and
engineering support services: during distribution system emergencies; upon request for routine
operating and maintenance; or for capital project tasks.
The parties have successfully negotiated an Intergovernmental Agreement for Substation
Maintenance and Engineering Support Services (“IGA”). Under the IGA, Platte River will provide
backup substation maintenance and engineering support at each Fort Collins substation. Platte
River shall invoice Fort Collins monthly for work performed. As in similar agreements with
Loveland and Estes Park, the billing rate for Platte River shall consist of direct pay and benefits.
The management of Platte River recommends approval of the IGA.
The attached resolution approves the IGA for execution.
Attachment
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INTERGOVERNMENTAL AGREEMENT
FOR
SUBSTATION MAINTENANCE AND ENGINEERING SUPPORT SERVICES
THIS INTERGOVERNMENTAL AGREEMENT FOR SUBSTATION MAINTENANCE
AND ENGINEERING SUPPORT SERVICES (“Agreement”) is made and entered into
this ____ day of_________, 2016, by and between the CITY OF FORT COLLINS,
COLORADO, a home rule municipality (“Fort Collins”), and PLATTE RIVER POWER
AUTHORITY, a political subdivision organized and existing under and by virtue of the
laws of the State of Colorado (“Platte River”).
WHEREAS, Fort Collins desires to retain Platte River to perform Substation
Maintenance and Engineering Support Services during distribution system emergencies
or upon request for routine Operating and Maintenance or Capital Project tasks as set
forth in this Agreement (the “Services”); and
WHEREAS, Platte River desires to provide those Services to Fort Collins; and
WHEREAS, as governmental entities in Colorado, Fort Collins and Platte River
are authorized, pursuant to C.R.S. § 29-1-203, to cooperate or contract with one another
to provide any function, service, or facility lawfully authorized to each.
NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, the parties agree as follows:
1.
Services. Fort Collins agrees to retain Platte River to provide the Services as
more specifically set forth in Exhibit A, attached hereto and incorporated
herein by t h i s reference, and Platte River agrees to so serve. Platte River
represents that it has the requisite authority, capacity, experience, and expertise
to perform the Services in compliance with the provisions of this Agreement
and all applicable laws and agrees to perform the Services on the terms and
conditions set forth herein.
2.
Compensation. F o r t C o l l i n s agrees to pay Platte River for the Services
amounts due as set forth in Exhibit A. Fort Collins shall make payment upon
receipt and approval of invoices submitted by Platte River, which invoices shall
not be submitted more frequently than monthly and shall identify the Services
performed for which payment is requested.
3.
Term. The Term of this Agreement shall be from the date first written above
until terminated as provided in Paragraph 10 below.
4.
Appropriation.
To the extent this Agreement constitutes a multiple fiscal
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year debt or financial obligation of Fort Collins; it shall be subject to annual
appropriation b y t h e Fort Collins City Council and Article X, Section 20 of
the Colorado Constitution. Neither Platte River nor Fort Collins shall have
a n y obligation to continue this Agreement in any fiscal year in which no such
appropriation is made.
5.
Monitoring and Evaluation. Fort Collins reserves the right to monitor and
evaluate the progress and performance of Platte River to ensure that the terms of
this Agreement are being satisfactorily met in accordance with Fort Collins’ and
other applicable monitoring and evaluating criteria and standards. Platte River
shall cooperate with Fort Collins relating to such monitoring and evaluation.
6.
Independent Contractor. The parties agree that Platte River shall be an
independent contractor and shall not be an employee, agent, or servant of Fort
Collins.
7.
Insurance Requirements.
a.
Excess Liability Insurance. Platte River self insures up to One Million
Dollars ($1,000,000.00). Thereafter, Platte River maintains an excess liability
insurance policy.
b.
Comprehensive Automobile Liability Insurance. Platte River shall
procure and keep in force during the duration of this Agreement a
policy of comprehensive automobile liability insurance insuring Platte
River against any liability for personal injury, bodily injury, or death
arising out of the use of motor vehicles and covering operations on or
off the site of all motor vehicles controlled by Platte River which are
used in connection with the Services, whether the motor vehicles are
owned, non-owned, or hired, with a combined single limit of at least
One Million Dollars ($1,000,000).
c.
Terms of Insurance. Insurance required by this Agreement may provide
for deductible amounts as Platte River deems reasonable for the
Services. No such policies shall be cancelable or subject to reduction in
coverage limits except after ten days prior written notice to Fort Collins.
d.
Workers’ Compensation and Other Insurance. During the term of this
Agreement Platte River shall procure and keep in force workers’
compensation insurance and all other insurance required by any
applicable law.
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e.
Evidence of Coverage. Upon request, Platte River shall furnish to Fort
Collins certificates of insurance policies evidencing insurance coverage
required by this Agreement.
f.
Subcontracts. Platte River shall contract only with entities capable of
performing the work for which they are retained. Platte River shall
require all subcontractors to carry adequate levels of insurance and to
name Fort Collins as an additional insured under the required policies.
In addition, all contracts between Platte River and subcontractors for
work under this Agreement shall name Fort Collins as a third party
beneficiary of such contracts.
g.
Property Insurance. Fort Collins shall maintain adequate property
insurance, which insurance shall provide a waiver of subrogation in
favor of Platte River. Upon request, Fort Collins shall provide
documentation to Platte River confirming the existence of said property
insurance with the waiver of subrogation language.
8.
Indemnification. To the extent permitted by law, each party hereby covenants
and agrees to indemnify, save, and hold harmless the other party, its officers,
employees, and agents from any and all liability, loss, costs, charges, obligations,
expenses, attorney’s fees, litigation, judgments, damages, claims, and demands of
any kind whatsoever arising from or out of any gross negligence or intentional
misconduct of its officers, employees, or agents in the performance or
nonperformance of its obligations under this Agreement.
9.
Limitations of Liability. In recognition of the nature of the compensation
received for the Services rendered by Platte River under this Agreement, in no
event will Platte River be liable to Fort Collins for any claim for damage to
property of Fort Collins, whether such claim is in contract or tort, except as
provided in Paragraph 8, above. IN NO EVENT WILL PLATTE RIVER BE
LIABLE FOR CONSEQUENTIAL, INCIDENTAL, OR PUNITIVE DAMAGES.
10.
Termination.
a.
Generally.
1)
Fort Collins may terminate this Agreement without cause if it
determines that such termination is in Fort Collins’ best
interest. Fort Collins shall effect such termination by giving
written notice of termination to Platte River, specifying the
effective date of termination, at least thirty (30) calendar days
prior to the effective date of termination. In the event of such
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termination by Fort Collins, Fort Collins shall be liable to pay
Platte River for Services performed as of the effective date of
termination (without further liability for payment for services
performed after the date of termination). Platte River shall not
perform any additional Services after the effective date of the
termination unless otherwise instructed in writing by Fort Collins.
2)
b.
Platte River may terminate this Agreement without cause if it
determines that such termination is in Platte River’s best
interest. Platte River shall effect such termination by giving
written notice of termination to Fort Collins, specifying the
effective date of termination, at least thirty (30) calendar days
prior to the effective date of termination.
For Cause. If, through any cause, either party fails to fulfill its obligations
under this Agreement in a timely and proper manner, violates any
provision of this Agreement, or violates any applicable law, and does not
commence correction of such nonperformance or violation within seven (7)
calendar days of receipt of written notice and diligently completes the
correction thereafter, the non-breaching party shall have the right to
terminate this Agreement for cause immediately upon written notice of
termination to the breaching party. In the event of such termination by
Fort Collins, Fort Collins shall be liable to pay Platte River for Services
performed as of the effective date of termination. Platte River shall not
perform any additional Services following receipt of the notice of
termination.
11.
Governmental Immunity Act. No term or condition of this Agreement shall be
construed or interpreted as a waiver, by either party, express or implied, of any of
the immunities, rights, benefits, protections, or other provisions of the Colorado
Governmental Immunity Act, C.R.S. § 24-10-101 et seq.
12.
Survival Clause. The “Indemnification” provision set forth in this Agreement
shall survive the completion of the Services and the satisfaction, expiration, or
termination of this Agreement.
13.
Entire Agreement. This Agreement contains the entire agreement of the parties
relating to the subject matter hereof and, except as provided herein, may not
be modified or amended except by written agreement of the parties. This
Agreement is for the benefit of the parties, and there is no third party or other
intended beneficiaries to this Agreement.
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14.
Severability. In the event a court of competent jurisdiction holds any
provision of this Agreement invalid or unenforceable, such holding shall not
invalidate or render unenforceable any other provision of this Agreement.
15.
Heading. Paragraph headings used in this Agreement are for convenience of
reference and shall in no way control or affect the meaning or interpretation of
any provision of this Agreement.
16.
Notices.
Written notices required under this Agreement and all other
correspondence between the parties shall be directed to the following and shall
be deemed received when hand-delivered or three (3) days after being sent
by certified mail, return receipt requested:
If to Fort Collins:
Utilities Director
City of Fort Collins
PO Box 580
700 Wood St.
Fort Collins, CO 80521
If to Platte River:
General Manager/CEO
Platte River Power Authority
2000 East Horsetooth Road
Fort Collins, CO 80525
17.
Governing Law and Venue. This Agreement shall be governed by the laws of
the State of Colorado, and venue shall be in the County of Larimer, State of
Colorado.
18.
Legal Constraints. The parties recognize the legal constraints imposed upon them
by the constitutions, statutes, and regulations of the State of Colorado and of the
United States, and imposed upon Fort Collins by its Charter and Municipal
Code, and, subject to such constraints, the parties intend to carry out the
terms and conditions of this Agreement.
Notwithstanding any other
provision in this Agreement to the contrary, in no event shall either of the
parties hereto exercise any power or take any action which shall be prohibited
by applicable law.
19.
Counterparts. This Agreement may be executed in separate counterparts, and
the counterparts taken together shall constitute the whole of this Agreement.
Page 5 of 9
Page 22
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.
CITY OF FORT COLLINS, COLORADO
By:
City Manager
ATTEST:
City Clerk
Approve as to Form:
Assistant City Attorney
PLATTE RIVER POWER AUTHORITY
By:
Jackie A. Sargent, General Manager/CEO
ATTEST:
Assistant Secretary
Approve as to Form:
Associate General Counsel
Page 6 of 9
Page 23
EXHIBIT A
Scope of Services
Platte River shall provide ba ck up substation maintenance and engineering support a t
e a c h Fort Collins substation (the "Substations"), including but not limited to those identified
below. This Exhibit A describes in general the b a c k u p support responsibilities that
Platte River may provide if needed, the manner in which those responsibilities will be
performed, and the administrative activities that will support this work.
Substations
This list shall be deemed automatically amended upon the construction and operation of
additional substations on the Fort Collins Electric Utility distribution network.
Substation Name
Drake
Timberline
Harmony
Richard’s Lake
Linden
Dixon Creek
Portner
Location
200 West Drake Rd., Fort Collins
1809 Timberline Rd., Fort Collins
1800 E. Harmony Rd., Fort Collins
3535 E.C.R. 52, Fort Collins
Linden Center Dr., Fort Collins
Intersection of Drake Rd./Overland Trail,
Fort Collins
6561 Portner Dr., Fort Collins
Staffing
Platte River will:
•
•
Employ adequate staff to perform backup substation maintenance and engineering
support Services at the Substations. These employees shall have other Platte River
job responsibilities in addition to their responsibilities under this Agreement.
Platte River will identify a lead person on its staff to coordinate the work between
Platte River and Fort Collins.
Scope of Work
Platte River will:
•
Provide backup substation engineering support needed to solve equipment problems
including, but not limited to, the following:
System disturbance analysis to enable load restoration
Trouble shoot relays
Page 7 of 9
Page 24
•
Provide backup substation maintenance tasks including, but not limited to, the
following:
Rack in/rack out feeder switchgear breakers
Rack in/rack out ground breakers
Rack in/rack out main switchgear breakers
Test and maintain substation transformers as requested
Switching in substations-Distribution side
Relay downloads (load and historical information)
Administrative Support
Platte River will:
•
•
•
•
•
•
•
Document all work completed through work orders initiated in its maintenance
management system. Copies of these documents shall be made available to Fort Collins
upon request.
Coordinate any planned outages with Fort Collins staff.
Provide a single point of contact for Fort Collins staff for distribution system
coordination.
Make available Platte River staff to meet with Fort Collins staff to coordinate
substation activities with other distribution system activities.
Arrange coordination meetings with Fort Collins staff as needed to make sure that
Platte River substation maintenance and engineering work on behalf of Fort Collins
is being planned and coordinated with Fort Collins staff.
Provide updates to any drawings that need to be changed as a result of any Platte
River work in the Substations.
Request Fort Collins’ approval for any parts that are needed to repair Fort Collins’
equipment that exceeds $1,000 for either a single part or the aggregate cost of multiple
parts, which approval shall not be unreasonably withheld.
Fort Collins will:
•
•
•
•
Provide access to any substation equipment drawings necessary to perform the
work described in this Agreement.
Provide the use of any specialized substation maintenance equipment or spare parts
that remain in Fort Collins’ possession.
Provide first response call-out for any substation problems (with Platte River
providing back-up during vacations or illnesses).
Provide 72 hours prior notice for repair/maintenance calls, unless in the case of an
emergency.
Page 8 of 9
Page 25
Reimbursement
Platte River will:
•
•
•
•
Provide a monthly invoice for work performed for Fort Collins. This invoice will be
based on the time spent by Platte River staff on Fort Collins substation work, as
documented through work orders that will be available for Fort Collins’ review, and
the cost of any parts purchased on behalf of Fort Collins. Vehicle costs and the costs
of any equipment necessary for the performance of the Services will be included.
Use a billing rate for its staff that consists of direct pay and benefits. No Platte River
administrative costs will be billed to Fort Collins.
Provide a billing rate sheet to Fort Collins on an annual basis.
Fort Collins acknowledges that the billing rate may change during the term of
this Agreement and that the City will be invoiced based on the rate in effect at the time
work is performed. Platte River shall provide prior notice to Fort Collins of any such
rate change.
Fort Collins will:
•
Pay invoices submitted by Platte River within thirty (30) days of receipt.
Page 9 of 9
Page 26
Page 27
RESOLUTION NO. __ -16
WHEREAS, Platte River Power Authority (“Platte River”) is empowered by C.R.S. § 291-204 and the Organic Contract to operate and maintain electric facilities, and does so operate
and maintain electric facilities; and
WHEREAS, the City of Fort Collins (“Fort Collins”) is empowered to and does lawfully
operate and maintain an electric distribution system for the benefit of its residents; and
WHEREAS, pursuant to C.R.S. § 29-1-203 both Fort Collins and Platte River are
empowered to enter into intergovernmental agreements through which the parties may
cooperate in the provision of a service or function lawfully authorized to each; and
WHEREAS, Fort Collins wishes to contract with Platte River to perform certain backup
and emergency substation maintenance and engineering support services as set forth in the
attached Intergovernmental Agreement for Substation Maintenance and Engineering Support
Services (“IGA”); and
WHEREAS, Platte River is willing to perform such services under the terms contained in
the attached IGA mutually drafted by the parties.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of Platte River that
the Intergovernmental Agreement for Substation Maintenance and Engineering Support
Services between Platte River Power Authority and the City of Fort Collins, in substantially the
form presented, is approved and the General Manager/CEO is empowered to execute such IGA
on behalf of Platte River.
AS WITNESS, I have executed my name as Assistant Secretary and have affixed the corporate
seal of the Platte River Power Authority this
day of
, 2016.
Assistant Secretary
Resolution No. __-16: Fort Collins Substation Maintenance IGA
Page 1 of 1
Page 28
Page 29
No materials at this time.
Page 30
Page 31
There are no materials for this section.
Page 32
Page 33
Memorandum
Date:
April 20, 2016
To:
Board of Directors
From:
Jackie A. Sargent, General Manager/CEO
Dave Smalley, Chief Financial & Risk Officer
Wade Hancock, Financial Planning Manager
Subject:
Revision to Tariff—Schedule 4: Wholesale Transmission Service
The Board of Directors is required by the AMENDED CONTRACTS FOR THE SUPPLY OF
ELECTRIC POWER AND ENERGY (AMENDED CONTRACTS) between Platte River Power
Authority (Platte River) and the Municipalities to review the rates for electric power and energy
furnished thereunder at such intervals as it deems appropriate, but no less frequently than once
each year. It has been the routine practice to review and modify Tariff—Schedule 4, the tariff
under which Platte River offers transmission service to third parties, on an annual basis at the
April Board meeting after the audited year-end financial results are available. This ensures that
the rate reflects the most recent costs of operation and actual transmission usage.
The Tariff—Schedule 4 transmission rates are charged to other utilities (such as Xcel Energy
and Tri-State) that use Platte River’s transmission system. Tariff—Schedule 4 is also charged to
Platte River for merchant sales. The transmission rates are calculated using a methodology that
the Federal Energy Regulatory Commission has prescribed for this purpose. The following
proposed rates were calculated using the 2015 year-end financial and operational information.
The proposed Tariff—Schedule 4 Real Power Loss factor is changing from 2.10 percent to 1.82
percent. The decrease is due to a change in the loss rate calculation.
The proposed Tariff—Schedule 4 charge for Reactive Supply and Voltage Control from
Generation Sources Service is decreasing 4.8 percent from $48.85 to $46.50 per megawatt of
Reserved Capacity per month. The rate decrease is the result of a 0.2 percent decrease in
transmission usage and a 5.0 percent decrease in the calculated cost recovery for reactive
power and voltage control. Platte River charges this rate to network transmission customers.
The proposed Tariff—Schedule 4 charge for Long-Term and Short-Term Firm Point-to-Point
Transmission Service and Non-Firm Point-to-Point Transmission Service are decreasing from
$5,814.04 to $5,680.29 per megawatt of Reserved Capacity per month. The 2.3 percent rate
decrease is the result of a 2.5 percent decrease in the transmission revenue requirement
outpacing a 0.2 percent decrease in transmission usage. The revenue requirement is
decreasing primarily due to reduced net transmission plant. Under Tariff—Schedule 4, Platte
River continues to reserve the right to offer discounted transmission rates for specific
transmission paths.
Page 34
MEMO - Revision to TARIFF - SCHEDULE 4 Wholesale Transmission Service
April 2016
Page 2 of 2
If approved, this revised rate tariff will become effective on May 1, 2016.
Attached to this memorandum is a copy of the proposed tariff (both a clean and a redline copy)
and a resolution that authorizes amendment of the wholesale transmission service tariff.
Attachment
Page 35
TARIFF—SCHEDULE 4: WHOLESALE TRANSMISSION SERVICE
Platte River Power Authority (Platte River) offers open access transmission service through this
Open Access Transmission Tariff (OATT). The complete OATT is posted on Platte River’s Open
Access Same-Time Information System (OASIS) web site. Any Eligible Customer (as defined in
the OAT Tariff) may request transmission service from Platte River under the terms of the OAT
Tariff. This OAT Tariff does not apply to any entity taking bundled service under Platte River’s
TARIFF—SCHEDULE 1: FIRM RESALE POWER SERVICE; TARIFF—SCHEDULE 8:
STANDBY SERVICE; OR TARIFF—SCHEDULE 9: LARGE USER SERVICE.
In accordance with the OAT Tariff, Platte River reserves the right to offer a discounted
transmission rate for transmission service posted on the OASIS for specific transmission paths.
A summary of the charges within the OATT Schedules follows.
The Real Power Loss factor is 1.82%.
(1)
Scheduling, System Control, and Dispatch Service
No charge in addition to that for Transmission Service (Items 7 and 8 below).
(2)
Reactive Supply and Voltage Control from Generation Sources Service
$46.50 per megawatt (MW) of Reserved Capacity per month.
(3)
Regulation and Frequency Response Service
Platte River is not a balancing authority and does not offer this service. Upon written request,
Platte River will assist in arranging for the local balancing authority operator to provide this
service; however, Platte River makes no representation that the local balancing authority
operator can or will provide the service.
(4)
Energy Imbalance Service
Platte River is not a balancing authority and does not offer this service. Upon written request,
Platte River will assist in arranging for the local balancing authority operator to provide this
service; however, Platte River makes no representation that the local balancing authority
operator can or will provide the service.
(5)
Operating Reserve—Spinning Reserve Service
Platte River is not a balancing authority and does not offer this service. Upon written request,
Platte River will assist in arranging for the local balancing authority operator to provide this
service; however, Platte River makes no representation that the local balancing authority
operator can or will provide the service.
(6)
Operating Reserve—Supplemental Reserve Service
Platte River is not a balancing authority and does not offer this service. Upon written request,
Platte River will assist in arranging for the local balancing authority operator to provide this
service; however, Platte River makes no representation that the local balancing authority
operator can or will provide the service.
Tariff—Schedule 4:
Wholesale Transmission Service
Page 1 of 2
Adopted:
Effective:
Page 36
(7)
Long-Term and Short-Term Firm Point-to-Point Transmission Service
The charges can be up to the following limits:
Yearly Delivery
Monthly Delivery
Weekly Delivery
Daily Delivery
Hourly Delivery
(8)
$68,130.50 per MW of Reserved Capacity per year
$5,680.29 per MW of Reserved Capacity per month
$1,310.84 per MW of Reserved Capacity per week
$262.17 per MW of Reserved Capacity per day
$16.39 per MW of Reserved Capacity per hour
Non-Firm Point-to-Point Transmission Service
The charges can be up to the following limits:
Monthly Delivery
Weekly Delivery
Daily Delivery
Hourly Delivery
$5,680.29 per MW of Reserved Capacity per month
$1,310.84 per MW of Reserved Capacity per week
$262.17 per MW of Reserved Capacity per day
$16.39 per MW of Reserved Capacity per hour
Transmission Revenue Requirement
The charge for Network Integration Transmission Service is calculated pursuant to the Federal
Energy Regulatory Commission (FERC) Pro Forma Open Access Transmission Tariff
Attachment H based on Platte River’s annual transmission revenue requirement of $36,745,518.
This transmission revenue requirement is calculated in accordance with the FERC pro-forma
Network Service Rate calculation requirement.
Joint Dispatch Transmission Service
Joint Dispatch Transmission Service is applicable only to load serving entities in the PSCo
Balancing Authority Area that are signatories to a Joint Dispatch Agreement (JDA) under which:
(1) participating generating resources of the parties are dispatched as a pool on a least-cost
basis respecting transmission limitations; and (2) the Joint Dispatch Transmission Service
Customers’ respective transmission service providers have provided within their OATT a
transmission service schedule for energy dispatched pursuant to the JDA at a rate equal to zero
dollars on a non-firm, as-available basis with the lowest curtailment priority.
Hourly delivery:
Tariff—Schedule 4:
Wholesale Transmission Service
$0.00 per MW of Reserved Capacity per hour
Page 2 of 2
Adopted:
Effective:
Page 37
TARIFF—SCHEDULE 4: WHOLESALE TRANSMISSION SERVICE
Platte River Power Authority (Platte River) offers open access transmission service through this
Open Access Transmission Tariff (OATT). The complete OATT is posted on Platte River’s Open
Access Same-Time Information System (OASIS) web site. Any Eligible Customer (as defined in
the OAT Tariff) may request transmission service from Platte River under the terms of the OAT
Tariff. This OAT Tariff does not apply to any entity taking bundled service under Platte River’s
TARIFF—SCHEDULE 1: FIRM RESALE POWER SERVICE; TARIFF—SCHEDULE 8:
STANDBY SERVICE; OR TARIFF—SCHEDULE 9: LARGE USER SERVICE.
In accordance with the OAT Tariff, Platte River reserves the right to offer a discounted
transmission rate for transmission service posted on the OASIS for specific transmission paths.
A summary of the charges within the OATT Schedules follows.
The Real Power Loss factor is 2.11.82%.
(1)
Scheduling, System Control, and Dispatch Service
No charge in addition to that for Transmission Service (Items 7 and 8 below).
(2)
Reactive Supply and Voltage Control from Generation Sources Service
$48.8546.50 per megawatt (MW) of Reserved Capacity per month.
(3)
Regulation and Frequency Response Service
Platte River is not a balancing authority and does not offer this service. Upon written request,
Platte River will assist in arranging for the local balancing authority operator to provide this
service; however, Platte River makes no representation that the local balancing authority
operator can or will provide the service.
(4)
Energy Imbalance Service
Platte River is not a balancing authority and does not offer this service. Upon written request,
Platte River will assist in arranging for the local balancing authority operator to provide this
service; however, Platte River makes no representation that the local balancing authority
operator can or will provide the service.
(5)
Operating Reserve—Spinning Reserve Service
Platte River is not a balancing authority and does not offer this service. Upon written request,
Platte River will assist in arranging for the local balancing authority operator to provide this
service; however, Platte River makes no representation that the local balancing authority
operator can or will provide the service.
(6)
Operating Reserve—Supplemental Reserve Service
Platte River is not a balancing authority and does not offer this service. Upon written request,
Platte River will assist in arranging for the local balancing authority operator to provide this
service; however, Platte River makes no representation that the local balancing authority
operator can or will provide the service.
Tariff—Schedule 4:
Wholesale Transmission Service
Page 1 of 2
Adopted:
Effective:
Page 38
(7)
Long-Term and Short-Term Firm Point-to-Point Transmission Service
The charges can be up to the following limits:
Yearly Delivery
Monthly Delivery
Weekly Delivery
Daily Delivery
Hourly Delivery
Yearly Delivery
Monthly Delivery
Weekly Delivery
Daily Delivery
Hourly Delivery
(8)
$68,130.50 per MW of Reserved Capacity per year
$5,680.29 per MW of Reserved Capacity per month
$1,310.84 per MW of Reserved Capacity per week
$262.17 per MW of Reserved Capacity per day
$16.39 per MW of Reserved Capacity per hour
$69,768.52 per MW of Reserved Capacity per year
$5,814.04 per MW of Reserved Capacity per month
$1,341.70 per MW of Reserved Capacity per week
$268.34 per MW of Reserved Capacity per day
$16.77 per MW of Reserved Capacity per hour
Non-Firm Point-to-Point Transmission Service
The charges can be up to the following limits:
Monthly Delivery
Weekly Delivery
Daily Delivery
Hourly Delivery
Monthly Delivery
Weekly Delivery
Daily Delivery
Hourly Delivery
$5,680.29 per MW of Reserved Capacity per month
$1,310.84 per MW of Reserved Capacity per week
$262.17 per MW of Reserved Capacity per day
$16.39 per MW of Reserved Capacity per hour
$5,814.04 per MW of Reserved Capacity per month
$1,341.70 per MW of Reserved Capacity per week
$268.34 per MW of Reserved Capacity per day
$16.77 per MW of Reserved Capacity per hour
Transmission Revenue Requirement
The charge for Network Integration Transmission Service is calculated pursuant to the Federal
Energy Regulatory Commission (FERC) Pro Forma Open Access Transmission Tariff
Attachment H based on Platte River’s annual transmission revenue requirement of
$37,676,02336,745,518. This transmission revenue requirement is calculated in accordance
with the FERC pro-forma Network Service Rate calculation requirement.
Joint Dispatch Transmission Service
Joint Dispatch Transmission Service is applicable only to load serving entities in the PSCo
Balancing Authority Area that are signatories to a Joint Dispatch Agreement (JDA) under which:
(1) participating generating resources of the parties are dispatched as a pool on a least-cost
basis respecting transmission limitations; and (2) the Joint Dispatch Transmission Service
Customers’ respective transmission service providers have provided within their OATT a
transmission service schedule for energy dispatched pursuant to the JDA at a rate equal to zero
dollars on a non-firm, as-available basis with the lowest curtailment priority.
Hourly delivery:
Tariff—Schedule 4:
Wholesale Transmission Service
$0.00 per MW of Reserved Capacity per hour
Page 2 of 2
Adopted:
Effective:
Page 39
RESOLUTION NO. __-16
WHEREAS, Platte River Power Authority sets forth the terms and conditions for
transmission service through “TARIFF—SCHEDULE 4: WHOLESALE TRANSMISSION
SERVICE”; and
WHEREAS, because the wholesale transmission tariff offering is not associated with a
service taken by the Owner Municipalities, typically Tariff—Schedule 4 is not revised when the
Board conducts its annual review of the remaining tariffs, rather Platte River reviews the
transmission tariff offering annually during April using audited financial results for the prior year;
and
WHEREAS, Platte River’s staff recommends in a memorandum dated April 20, 2016,
that an amended “TARIFF—SCHEDULE 4: WHOLESALE TRANSMISSION SERVICE” be
adopted to reflect audited and updated year-end financial results and operational, maintenance,
and investment cost information.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Platte River
Power Authority that an amended “TARIFF—SCHEDULE 4: WHOLESALE TRANSMISSION
SERVICE,” in substantially the form attached hereto is adopted to become effective as of May
1, 2016.
AS WITNESS, I have executed my name as Assistant Secretary and have affixed the corporate
seal of the Platte River Power Authority this
day of
, 2016.
Assistant Secretary
Resolution No. __-16: TARIFF—SCHEDULE 4: WHOLESALE TRANSMISSION SERVICE
Page 1 of 1
Page 40
Page 41
Memorandum
Date:
April 20, 2016
To:
Board of Directors
From:
Jackie A. Sargent, General Manager/CEO
Pete Hoelscher, Chief External Affairs and Customer Relations Officer
Subject:
2015 Annual Report
The 2015 Annual Report is in the final stages of production, and will be presented at the April 28
Board meeting. With the help of A-Train Marketing, we are producing a completely digital
version of the report. This approach reduces production costs and supports our overall
sustainability focus. A digital book also increases engagement and affords more opportunity for
multimedia viewing. Readers will have the option to print a PDF version of the report.
The Board will be asked to accept the 2015 Annual Report at the Board meeting.
Page 42
Page 43
Memorandum
Date:
April 20, 2016
To:
Board of Directors
From:
Jackie A. Sargent, General Manager/CEO
Deborah R. Schaneman, Chief Compliance Officer
Subject:
External Audit Firm Considerations
One of the duties of the Board of Directors is “to provide for the services of a firm of
independent certified public accountants to examine, at least annually, the financial records and
accounts of the Authority and to report thereupon.” This duty is set forth in the Organic Contract
and the timing of the audit is established by both our bond covenants and state statute.
As discussed at the March meeting, the existing contract with BKD terminates with the
completion of the 2015 audit services. BKD has presented a proposal to continue the
relationship. To assist the Board in making a decision in April to either accept the standing
proposal from BKD or to issue a request for proposals, the Board requested that staff present
relevant benefits and concerns for evaluation in support of this decision.
Overview
Platte River staff is very satisfied with BKD’s services, but the hiring and retaining of the external
auditor is the Board’s decision. Factors that should be carefully considered include: auditor
competence, timeliness of the audit, continuity, and cost – each of which will be addressed
below.
Auditor Competence
Due to its unique nature as both a political subdivision and electric utility, Platte River’s auditing
firm should have extensive experience performing audits and providing services to both utilities
and governmental entities. In addition to a thorough knowledge of the Generally Accepted
Accounting Principles (GAAP), the Platte River auditor should be familiar with Federal Energy
Regulatory Commission (FERC) accounting guidelines and special accounting treatments
provided for regulated entities under Governmental Accounting Standards Board (GASB)
pronouncements. This limits the pool. In addition to BKD, four other potentially qualified auditors
were identified through a 2013 Large Public Power Council (LPPC) member survey. These CPA
firms include Baker Tilly Virchow Krause LLP, PricewaterhouseCoopers LLP, KPMG and Ernst
& Young – and there may be others. Assuming the Board is satisfied with BKD’s performance
there is no issue with BKD auditor competence, so this factor would not warrant changing CPA
firms.
Page 44
MEMO - External Audit Firm Considerations
April 2016
Page 2 of 2
Timeliness of Audit
Platte River’s General Power Bond Resolution requires that a set of financial statements
together with an Accountant’s Certificate be filed with the Trustee annually within one hundred
and twenty (120) days after the close of each fiscal year. A commitment to conduct our financial
audit in early February to ensure that Platte River is able to meet these deadlines is imperative.
Large firms with Security Exchange Commission clients tend to prioritize those clients and push
smaller organization’s audits into March. This was an issue when Platte River used Ernst &
Young, and was one of the determining factors for seeking an alternative after the 2005 audit.
BKD has provided timely audits.
Continuity
A new auditor brings a fresh set of eyes - a new auditor may look at business differently,
reassess risk areas and question things a previous CPA firm has taken for granted. However,
there are drawbacks. A mature relationship with an auditor will create a level of understanding
of the business and insights that may be beneficial. A long-standing relationship with one
auditor may raise the specter of true independence and objectivity. For this reason current audit
guidance requires the rotation of engagement partners and audit teams, and if BKD is reengaged a new audit partner will be assigned.
Cost
Testing the market through an RFP would provide the best cost comparison. However, based
on an LPPC audit fee survey completed in 2013, BKD’s fees are at the low end of the scale for
qualified firms. Because CPA firms realize that it can be difficult to switch auditors, proposals
can result in short-term undercutting in anticipation of future increases. Platte River experienced
this with Ernst & Young when they requested a 25 percent increase in fees at the end of their
contract. This was another determining factor for issuing an RFP in 2006. To date, we have not
experienced this issue with BKD and the proposal costs and annual increases appear
reasonable. BKD has provided both a three and five year renewal option, each of which include
annual increases. Under the three year pricing, Platte River would be paying 6.3 percent more
for the 2018 audits than it did for the 2015 audits. With a five year renewal, the audit pricing in
2020 would be 7.7 percent higher than the 2015 fee.
Recommendation
Platte River staff believes the benefits of retaining BKD outweigh any benefits that could be
potentially realized by changing CPA firms. Staff recommends the Board renew the contract
with BKD for a five year period to take advantage of the reduced pricing.
Page 45
Memorandum
Date:
April 20, 2016
To:
Board of Directors
From:
Joseph B. Wilson, General Counsel
Subject:
PLATTE RIVER LEGAL AND GOVERNMENTAL AFFAIRS REPORT – APRIL 2016 BOARD MEETING
The following legal issues and governmental/legislative matters were addressed during the reporting
period; bold-faced type is used to highlight recent or significant developments.
LEGAL ISSUES:
CURRENT OR THREATENED LITIGATION
Longmont Excavation Damage — The Zayo Group damaged the 115 kV Terry St. – Fordham
underground transmission structure. Sturgeon Electric Company was the contractor for installation and
Rapid Wire LLC was the excavation subcontractor. These parties were notified immediately. Repairs
were completed and the line was placed in service on April 7, 2014. Two itemized accountings of costs
were sent to Zayo Group in a total amount of $728,088.33 with payment due May 15. Platte River filed
a complaint against Zayo on May 27, 2014, initiating litigation. Initially Zayo joined Sturgeon and Rapid
Wire as third-party defendants, and more recently joined Safe Sites, a contractor for Rapid Wire that
assisted in developing the boring plan resulting in the damage. Platte River is in the process of
developing expert witness reports in support of its litigation position. The discovery process is ongoing.
Depositions are underway and the parties have agreed upon a mediator. Mediation is scheduled
for June 1 before Judge Downes, formerly a federal district court judge in Wyoming. A trial date
has been assigned for July 2016.
WildEarth Guardians Litigation — WildEarth Guardians is an environmental group active in the
western United States. The group filed two lawsuits during the week of February 25, 2013; each
challenges administrative actions of federal agencies. Although Platte River is not a named party in
either proceeding, the relief requested would affect operations at the Craig units. The suit challenging
the Regional Haze SIP rule has settled, but the challenge to the federal mining approvals at ColoWyo
and Trapper Mines continues.
The remaining litigation involves a challenge to the mining plans approved for the Trapper and
ColoWyo mines (as well as other mines in New Mexico, Wyoming and Montana). Because the coal at
issue is on federal land the challenged approvals were granted by the Office of Surface Mining (OSM),
an agency within the Department of Interior. The complaint alleges that the federal approval process
was inadequate under the National Environmental Policy Act (NEPA) and the Surface Mining
Reclamation and Control Act (SMCRA) because of notice defects and a failure to take a “hard look” at
direct and indirect environmental impacts of the mining activity. The relief requested includes
invalidation of the mining plans and an injunction on mining until valid plans are approved.
A Motion to Sever and Transfer was filed by the Department of the Interior, which was granted. This
effectively limits the Colorado proceeding to the ColoWyo and Trapper mines in Moffat County.
Page 46
Legal and Governmental Affairs Report
April 2016
Page 2 of 6
The court issued a ruling on May 8, 2015. The court found for the plaintiff holding that 1) the notice
provided by OSM was insufficient in two respects and thus failed to allow effective public participation
during the approval process, and 2) OSM had failed to conduct the type of examination of the
environmental impacts required by NEPA. Of particular interest is the portion of the ruling that requires
an examination of the indirect impacts of mining, specifically the subsequent combustion of the coal
and the impacts of coal combustion on air quality.
The ruling is lengthy, and much of the decision addresses the various defenses raised associated with
the timing of the approvals and the extent of subsequent mining activity. The approval for the Trapper
Mine occurred in 2009 and the ColoWyo approval dates from 2007, yet the challenge was not filed until
2013. Trapper argued the case was moot because the federal coal at issue at Trapper was fully mined.
This argument was not available for ColoWyo. The court refused to dismiss the action based on claims
of mootness, laches and forfeiture.
Once these defenses were addressed the court dealt with the substance of the claims. Although notice
was published in various local papers by the mines during the state approval process – a precursor
proceeding to eventual action by OSM - the court found that the OSM failed to provide notice both at
the outset of its review and when its assessment was completed. Regarding the more significant issue
raised by plaintiffs, that being the nature of the environmental review required under NEPA, the court
ruled that OSM failed to meet the statutory requirements as to either the direct environmental impacts
of the mining activity or the impacts of the subsequent combustion of the mined coal. By its nature
NEPA protects the interests of the public in an effective and transparent process underlying federal
actions, the court noting “while NEPA does not fix substantive outcomes, it requires federal agencies to
take a “hard look” at the potential environmental consequences of their actions.”
Accepting the factual claims made by Trapper that all of the coal at issue had been mined, the court
acknowledged that vacatur of the OSM approval for Trapper made no sense. As to ColoWyo the court
did not enter an immediate vacatur, but rather gave the OSM a 120 day period to meet its obligations
under NEPA, indicating that a vacatur and injunction could result if action is not taken within the time
period allowed.
Subsequent to the ruling the attorney representing Trapper discovered that the permit at issue was
broader than represented and much of the coal at issue had not been mined. A notice correcting the
record was filed by Trapper on July 2, 2015. Notices of appeal were filed by both the ColoWyo and
Trapper Mines. The federal agency listed as the primary defendant in the suit chose not to appeal.
Trapper, WildEarth Guardians and the OSM agreed on a process for the NEPA review at Trapper and
filed a status report to this effect with the court, which was accepted by the court. The review at Trapper
commenced approximately October 1, 2015, and remains on track to be completed by April 30, 2016.
During this period mining activities will continue at Trapper only on the portions of the permit property
previously disturbed by mining activity.
The review of the ColoWyo Mine was recently completed with a finding that any indirect effects of
mining were insignificant with a recommendation that mining continue.
On September 15, WildEarth Guardians filed a new action against coal mines in Colorado, New Mexico
and Wyoming. Two mines in the Powder River Basin of Wyoming were named in the litigation, one of
which - the Antelope Mine - supplies coal for Rawhide. This action was filed in Denver federal district
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Legal and Governmental Affairs Report
April 2016
Page 3 of 6
court. Due to the outcome of procedural rulings in the prior case, it is likely that jurisdiction and venue
will be challenged for those actions directed at mines outside of Colorado.
Water Rights Diligence Application — As owners of conditional water rights (in this case, water rights
associated with the Reuse Plan), Platte River and Fort Collins are required by statute to file an
application for finding of reasonable diligence every six years. Although most of the water rights
associated with the Reuse Plan have been made absolute in prior filings, some rights remain
conditional. On May 27, 2015, Platte River and the City of Fort Collins filed an application in Water
Court, Division One. The application seeks only to continue the water rights as conditional, and does
not request any portion of the water rights to be made absolute.
In accordance with Colorado law, notice of the application was published in the Water Court Resume
and The Coloradoan. Five parties timely filed statements of opposition to the application:
1.
2.
3.
4.
5.
Northern Colorado Water Conservancy District
City of Greeley
Water Supply and Storage Company
Larimer & Weld Irrigation Company
Cache la Poudre Water Users Association
North Poudre Irrigation Co. (“NPIC”) filed a motion to intervene in the case after the deadline for filing
statements of opposition had passed. Platte River consented to the motion because it is likely the
motion would be granted by the water referee even if we objected, and NPIC’s concerns with the
application appear to be narrow. An initial telephone status conference between Platte River’s water
counsel, counsel for opposers, and the Water Referee was held on September 1, 2015. Platte River
provided a draft ruling to legal counsel for opposers on September 25, 2015. By order of the water court
referee, opposers had until November 30, 2015 to provide comments on the draft ruling. All opposers,
except Water Supply and Storage Co., submitted comments on the proposed decree. The comments
received can generally be classified into two categories. The first question the need and operation of
the remaining conditional exchanges. The second relate to certain opposers request to remove mention
of their structures in the propose decree. It is primarily the ditch company opposers making this
request, in particular The Larimer & Weld Irrigation Company (“LWIC”). Retained counsel and counsel
for Fort Collins have exchanged written correspondence in an effort to address LWIC’s concerns. No
settlement has been reached yet and the applicants will continue to negotiate with LWIC counsel.
A second telephone status conference was held on December 17, 2015 between the applicants and the
opposers before the water referee. Since the December status conference, Platte River and City of Fort
Collins water staff have met and discussed strategy moving forward. Due to various accounting and
operational changes, the City has decided to abandon the conditional exchanges involving structures
generally located upstream of the Rawhide Pipeline. This abandonment will not limit the City’s ability to
perform under the reuse agreement. At this time, Platte River has decided to continue pursuing a
finding of reasonable diligence in the pending case on the conditional exchanges located along the
Rawhide Pipeline. A revised draft decree with these changes was circulated to the opposers on
March 30, 2016. Platte River’s retained water counsel and Platte River staff will continue to
explore settlement with the opposers. Platte River staff will, prior to the next diligence filing deadline,
meet with the various ditch companies to explore how such exchanges can potentially offer operational
flexibility to both Platte River and the ditch companies.
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Legal and Governmental Affairs Report
April 2016
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On August 31, 2015, the Division Engineer submitted its Summary of Consultation report to the Water
Referee and all parties as required under the uniform local rules for water court. The Division Engineer
presented three issues for the Referee’s consideration, two of which are routinely included in
Consultation reports. The third requires a showing that Platte River has steadily applied work towards
perfecting the water rights. Platte River’s evidence should satisfy this standard. Platte River will
respond to the Summary of Consultation prior to the entry of decree in this case.
The application will likely be on the Water Referee’s Docket until at least July 31, 2016, and possibly
longer. During this time, Platte River and Fort Collins will make initial disclosures regarding the
application to the Water Court and opposing parties in an effort to explore settlement. All prior
reasonable diligence filings have been settled. If no settlement is reached before the Water Referee,
the application will be re-referred to the Water Judge and the matter will be set for trial at that time.
ONGONG AND CURRENT MATTERS OF SIGNIFICANCE
Environmental Protection Agency Clean Power Plan — On February 9 the Supreme Court stayed
the Clean Power Plan rule pending full judicial review. It is unlikely that such review will be complete
until 2017 or possibly 2018. This creates significant uncertainty about future compliance planning
efforts. Governor Hickenlooper announced that the state planning process will continue during the stay,
but opponents have threatened both legislative and judicial action to implement the stay. Discussion
of legislative actions is contained below in the Governmental Affairs section of this report.
Operations at Glen Canyon Dam — The Bureau of Reclamation and National Park Service are jointly
preparing an Environmental Impact Statement (“EIS”) to evaluate operations at Glen Canyon Dam over
the next twenty (20) years. In this instance the EIS process is referred to as the Long-Term
Experimental and Management Plan, or LTEMP. Glen Canyon is the largest hydropower facility in the
family of the Colorado River Storage Project (“CRSP”) hydropower units, which also includes the
Aspinall Units on the Gunnison River and Flaming Gorge on the Green River. The outcome of the
LTEMP process is important to Platte River because the selected alternative could reduce operational
flexibility and reduce available hydropower for purchase.
The EIS addresses a number of factors related to releases from Glen Canyon and flow levels down
river through Grand Canyon National Park, including hydropower, endangered fish recovery, recreation,
and sediment transport. In accordance with the National Environmental Policy Act, Reclamation and the
Park Service have developed seven alternatives that are being evaluated in the EIS. The alternatives
range from a “No Action” alternative to implementation of “steady flows.”
Reclamation and the Park Service publicly released the LTEMP EIS on January 7, 2016. Reclamation
and the Park Service have chosen “Alternative D”, also known as the “hybrid approach”, as their
preferred alternative. The hybrid approach provides greater hydropower benefits than other
alternatives. For example, the monthly release pattern under the hybrid approach would be proportional
to the contract rate of delivery for hydropower, except that releases in August and September would be
higher and the daily range would be increased (greater ramp up and ramp down rates compared to the
steady flow alternative). However, operational issues exist with the hybrid approach, especially in
relation to the lack of correlation of hydro generation with load curves.
There is a 90-day comment period on the draft. The co-lead agencies must consider and respond to
these comments prior to publishing the final decision. Several electric utilities have, or are considering
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Legal and Governmental Affairs Report
April 2016
Page 5 of 6
requesting an extension of time to review the LTEMP EIS, a document that is over 1,000 pages in
length. Platte River submitted such a request to allow staff time to fully review the proposed action and
the potential effects to our operations. Along with several other Senators from Western states, Senator
Cory Gardner sent a letter to Interior Secretary Jewell also requesting a 60-day extension. Interior has
not yet responded to this request. The Department of the Interior published in the Federal Register
a notice extending the time for filing comments by 30 days, making the new deadline May 9,
2016.
Staff continues to work with our utility colleagues through the Colorado River Energy Distributors
Association (“CREDA”) to analyze the hydropower impact of the LTEMP. CREDA’s comments will be
extensive, and will focus on the issues of an artificial limit placed on intraday flow fluctuations, low flow
experiments over the summer months, and high flow experiments during the fall and spring. Each of
these will reduce federal hydropower production and limit customer operational flexibility.
CONTRACTUAL MATTERS
Fiber Lease with Reliance Globalcom — Platte River entered into a fiber lease agreement with
Reliance Globalcom in 1999. The lease agreement granted Reliance use of 10 fibers on the Fort
Collins ring, two fibers on the Loveland Ring and six fibers on the Long Haul. In 2004, Reliance
entered into an agreement with the Poudre School District to construct a network of 27 laterals
connecting numerous PSD schools, as well as provide internet connectivity to PSD. Reliance
also served other customers via laterals from the leased Platte River fibers. Over the last
several years, Reliance has ceased it operations in the region and no longer serves any
customers in the area with internet service, including PSD. Reliance has approached Platte
River seeking to terminate its lease agreement, which otherwise would remain in effect into
2019.
Platte River is working with legal and operational staff members from Fort Collins, Loveland and
PSD to resolve the issue such that all interests are protected. Remaining issues to be resolved
include who should own legal title to the PSD laterals, future maintenance and location
responsibilities for those laterals, reimbursement from Reliance for Platte River’s expenses to
repair the splice points in the fiber rings used to serve former Reliance customers, and a
financial settlement to recover reasonably anticipated future payments under the 1999 lease
agreement.
GOVERNMENTAL AFFAIRS:
Colorado General Assembly — The 2016 session of the General Assembly commenced on January
13, 2016. The split in control of the legislative houses in combination with the upcoming election laid the
groundwork for an unproductive session. Deadlines for bill introduction have passed although some
bills with “late bill” status continue to trickle in. As of April 19 there have been 444 bills introduced in the
House and 189 bills in the Senate. Five bills pertained either directly to Clean Power Plan
implementation or to climate-related emission mandates.
Three Senate bills address the Clean Power Plan, all of which are sponsored by Senator Cooke. S.B.
16-046 seeks to modify the process for state implementation of the Clean Power Plan by mandating
Public Utilities Commission involvement and requiring plan approval from both houses of the General
Assembly through joint resolution. This bill also contains a provision that would stay any state
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Legal and Governmental Affairs Report
April 2016
Page 6 of 6
implementation efforts during the pendency of any stay of the Clean Power Plan imposed by the courts.
The profile of this bill increased with the stay granted by the Supreme Court on February 9, but on
March 16, Senator Cooke changed direction and filed S.B. 16-157. It is similar to S.B. 16-046 but takes
a more narrow approach imposing a legislative stay on Clean Power Plan activities within Colorado
during the pendency of the stay imposed by the Supreme Court. Having been abandoned by the
sponsor, S.B. 16-046 was postponed indefinitely on March 17. S.B. 16-157 moved forward and passed
out of the Senate on March 29, but has yet to be scheduled for hearing in the House. S.B. 16-061, also
sponsored by Senator Cooke, seeks to protect utility customers from rate increases associated with the
Clean Power Plan by creating a state fund to directly reimburse utilities from monies appropriated by
the legislature. S.B. 16-061 passed out of the Senate on April 6, but no action is scheduled in the
House.
House Bill 016-1004 requires the inclusion of measurable greenhouse gas reduction goals in future
iterations of the state climate action plan. Representative Arndt is a co-sponsor. Like S.B. 16-046, the
profile of H.B. 16-1004 was heightened due to the Clean Power Plan stay. This bill passed out of the
House, but was postponed indefinitely by the Senate Agriculture, Natural Resources and Energy
Committee on March 30.
On April 15, House Bill 016-1441 was introduced. This bill proposes substantive changes to the
statutory format for the Public Utilities Commission electric resource planning process, and as
such does not directly apply to Platte River. If passed by the House, it is expected to die quickly
on the Senate side. Introduced this late in the session, the bill can generally be viewed as one of
the flurry of message bills that will be introduced during the waning days of the session. Of
note, the bill would incorporate language into Title 40 to the effect that climate change is an
accepted scientific fact and require the PUC to establish a cost per ton for greenhouse gas
emissions for resource planning purposes.
The most significant activity concerning the Clean Power Plan occurred during the budget
process. The process began with an attempt before the Joint Budget Committee to defund state
planning activities during the stay of the Clean Power Plan. This led to a back and forth removal
and reinstatement of funding and employee positions as the budget bill moved from the JBC to
the House and later to the Senate. Eventually a compromise was reached that reduced the
Department of Public Health and Environment budget by about $112,000 with no reduction of
employees, but with an accompanying budget notation that the reduction was intended to
eliminate planning activities.
United States Congress — On April 13 a compromise was reached that will allow further
consideration of the energy bill before the Senate. The calendar is working against the bill;
because 2016 is an election year there is a shorter window for “policy” bills, and commentators
suggest that if the bill doesn’t pass during April the window will have closed. The Senate
calendar is crowded with other matters, but the sponsors are still trying to push the bill. The
Senate version differs significantly from the House version and a conference committee would
likely need to reconcile the conflicting provisions, which further dims chances. There is the
possibility that action could be taken during the “lame duck” session of Congress after the
November elections.
Page 51
March 2016
Operating Report
EXECUTIVE SUMMARY
For the month of March, Municipal demand was below budget while energy came in close to budget.
Baseload generation was significantly below budget for the month, year to date, as a result of lower
overall energy market demand and ongoing soft energy market pricing. A two-day unplanned outage of
Craig Unit 1 reduced station availability for the month. Wind generation outperformed budget in March
due to above normal wind production, which was experienced throughout the entire Western
Interconnect. Both surplus sales volume and pricing continue to be adversely affected by depressed
market conditions. For the month, natural gas prices continued to be well below normal, and as much
as 50% below projections. Dispatch costs were near budget in March, but are above budget for the
year primarily due to lower than anticipated generation from the Craig Station; however, Rawhide is
trending below budget as well.
Category
March Variance
YTD Variance
Municipal Demand (MW)
(5.0%)

(5.1%)

Municipal Energy (MWh)
0.8%

(0.3%)

(20.4%)

(24.3%)

24.4%

21.5%

Surplus Sales Volume (MWh)
(51.3%)

(55.0%)

Surplus Sales Price ($/MWh
(20.0%)

(16.1%)

1.5%

(3.6%)

Baseload Generation (MWh)
Wind Generation (MWh)
Dispatch Cost ($/MWh)
Variance Key: Favorable:  >2% | Near budget:  +/- 2% | Unfavorable:  <-2%
March 2016 Operating Report
1
Page 52
OPERATIONAL OVERVIEW
Safety. There were no lost time accidents in the month of March.
2016 Goal
March Actual
0
0
YTD Total


0
System Disturbances. During the snow and ice storm on March 23, Western’s Airport–Boyd Line
tripped twice causing loss of city load. Each occurrence lasted five to seven minutes. Then on March
24, the City of Loveland lost load when the Boyd–Lone Tree Line briefly tripped and quickly reclosed.
All outages were the result of one significant weather event.
2016 Goal
March Actual
0
3
YTD Total


3
Peak Day Obligation. Peak demand for the month was 419 megawatts, which occurred on March 7,
2016, at 19:00 hours and was 22 megawatts below budget. Platte River’s total obligations at the time of
peak were 509 megawatts.
Peak Day Obligation: February 3, 2016
Total Obligation
509
550
500
Forecast Demand
441
450
400
Municipal
Obligation
419
350
MW
300
250
200
150
100
50
0
1
2
3
4
5
6
7
Hydro
March 2016 Operating Report
8
9
Wind
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hour
Rawhide
Craig
CTs
Purchases
2
Page 53
POWER GENERATION
Rawhide Performance. Rawhide Unit 1 ran well during March with equivalent availability coming in
above budget. Net capacity factor was below budget due to the continued soft energy market – making
it difficult to exercise cost-effective transactions. Unit issues earlier in the year have reduced equivalent
availability, while the depressed surplus sales market has negatively affected capacity factors year to
date.
Rawhide Equivalent Availability
Budget
Rawhide Net Capacity Factor
Actual
Budget
100%
100%
95%
95%
90%
90%
85%
85%
80%
80%
75%
75%
70%
70%
65%
65%
60%
60%
Actual
55%
55%
50%
50%
March
March
YTD
YTD
Rawhide emissions levels were below compliance limits for the month of March:
SO2 (lbs/MBtu)
Limit
NOx (lbs/MBtu)
Actual
Limit
Hg (lbs/GWh)
Actual
Limit
0.10
0.16
0.014
0.09
0.14
0.012
0.08
0.12
0.07
0.06
0.10
0.05
0.08
0.04
0.06
Actual
0.010
0.008
0.006
0.03
0.004
0.04
0.02
0.002
0.02
0.01
0.00
0.00
March
YTD
March 2016 Operating Report
0.000
March
YTD
March
YTD
3
Page 54
Craig Station Performance. Craig Unit 1 was off-line for two days to repair a crack in a de-aerator
tank and replace a pump seal, resulting in below budget equivalent availability. Net capacity factor was
significantly below budget due to the continued soft energy market. Spinning reserves continue to be
held on the Craig units, causing a further reduction in capacity factor yet reducing overall system cost.
Craig Equivalent Availability
Budget
Craig Net Capacity Factor
Actual
Budget
100%
100%
90%
90%
80%
80%
70%
70%
60%
60%
50%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
Actual
0%
March
YTD
March
YTD
Peaking. CT A was operated in March for testing requirements. Natural gas burns were not budgeted
for March. However, natural gas pricing continues to be favorable.
MWhs
CT Generation
Budget
Actual
$/MBtu
1,800
$3.50
160
1,600
$3.00
140
1,400
120
1,200
100
1,000
$2.00
80
800
$1.50
60
600
40
400
20
200
180
Natural Gas Pricing*
Budget
Actual
$2.50
0
0
March
YTD
$1.00
$0.50
$March
YTD
* 2016 annual budgeted natural gas pricing is $3.33
March 2016 Operating Report
4
Page 55
Renewable Supply. Hydro allocations were received as budgeted. Wind generation is above budget
for the month and year to date due to higher than expected wind output.
MWh (000's)
MWh (000's)
Hydro Generation
70
Budget
Actual
200
Wind Generation
Budget
35
Actual
120
180
60
160
50
140
120
40
30
100
25
80
20
100
30
20
60
80
15
60
10
40
40
10
20
0
0
March
20
5
0
YTD
0
March
YTD
SALES AND PURCHASES
Surplus Sales. Surplus sales volume and pricing were significantly below budget due to the ongoing
depressed regional energy market caused by excess capacity within the western interconnect and
historically low natural gas pricing.
MWh (000's)
Sales Volume
Budget
120
$/MWh
Actual
100
350
$30
300
$25
250
80
Average Sales Price
Budget
Actual
$20
200
$15
60
150
40
100
20
0
March
March 2016 Operating Report
YTD
$10
50
$5
0
$0
March
YTD
5
Page 56
Purchases. The majority of March energy purchases were made for Municipal load to take advantage
of favorable market pricing. Although no energy purchases were budgeted for March, pricing was at
times below unit operating costs.
Energy Purchases
MWhs
Budget
2,000
$/MWh
Actual
30,000
Average Purchase Price
Budget
$25
Actual
1,800
25,000
1,600
$20
1,400
20,000
1,200
$15
15,000
1,000
800
$10
10,000
600
400
5,000
$5
0
$0
200
0
March
YTD
March
YTD
DISPATCH COST
Dispatch Cost. March blended dispatch costs were close to budget. Purchase pricing continues to be
favorable due to the soft energy market. Wind exceeded budgeted generation, resulting in below
budget wind dispatch costs. Although CTs were not budgeted for March, one CT operated for testing
and the energy produced was sold in the market.
March Dispatch Cost by Resource
$60
Budget
Actual
Blended Actual
$50
$/MWh
$40
$30
$20
$10
$0
Rawhide
Craig
LAP
CRSP
Purchases
Wind
CTs
Blended Budget: $28.91 | Blended Actual: $28.49
March 2016 Operating Report
6
Page 57
Year to date dispatch costs are above budget due to the extended screen outage at Rawhide as well as
below budget generation at the Craig Station. Favorable purchase pricing and lower than budgeted
wind dispatch costs are helping to offset a portion of the above budget dispatch costs for baseload
resources. Note that increased wind generation helps to reduce wind transmission expense on a per
MWh basis.
YTD Dispatch Cost by Resource
$50
Budget
$45
Actual
Blended Actual
$40
$35
$/MWh
$30
$25
$20
$15
$10
$5
$0
Rawhide
Craig
LAP
CRSP
Purchases
Wind
CTs
Blended Budget: $28.88 | Blended Actual: $29.93
POWER DELIVERY
Major System Operations Projects Benefitting the Municipalities:
Location
Estimated
Finish Date
Percent
Complete
Loveland
01/2016
95%
Crossroads city transformer addition
Fort Collins
05/2016
90%
Laporte substation 230kv expansion
Fort Collins
05/2016
85%
Laporte substation 115kv adaptations and refurbishments
Estes Park
07/2016
90%
Fiber loop replacement
Rawhide
08/2016
48%
Rawhide solar project
Loveland
08/2017
5%
Foothills Substation
Description
EVENTS OF SIGNIFICANCE
•
During the spring storm on March 23, Power System Operations managed numerous line trips
and outages while successfully maintaining the reliability of the electric system. There was loss
of load in Loveland when Western’s Airport-Boyd Line tripped but load was quickly restored.
•
During March, Platte River was able to self-supply 15 megawatts of spinning reserves. This
resulted in a monthly net savings of more than $110,000.
March 2016 Operating Report
7
Page 58
Page 59
PLATTE RIVER POWER AUTHORITY – Financial Highlights YearYear-toto-Date March 2016
Platte River reported unfavorable results year to date. A net loss of $0.3 million was reported and was below budget
$0.3 million due to below-budget revenues, partially offset by below-budget operating expenses. While municipal loads
have been below budget, revenues were lower primarily due to the surplus sales market conditions. Details of the
financial results are described below.
Results for the end of the year vary due to municipal load variations, market conditions, and operation and maintenance
expenses. At this point, it is estimated that year-end net income would be approximately $8.4 million but could vary
between $10.6 and $5.4 million depending on the magnitude of these factors.
Key Financial Results
($ M illio ns )
Net Inc o m e/(Lo s s )
M arc h
Budget Ac tual
$ (0.8) $ (0.2)
1.02x
$ 0.6
75.0%
$
-
$ (0.3)
1.31x
$ (0.3)
-
$ 10.7
(5.1%)
0.0%
(10.3%)
$ 217.5
185.6
.27x
26.5%
(.07x)
$ 15.4
$ (1.3)
(7.8%)
$ 52.3
$ 46.9
$ (5.4)
13.6
13.9
0.3
3.1
1.5
(1.6)
$ 14.5
$ 12.7
Purchased Power
2.8
3.0
(0.2)
(7.1%)
9.0
9.7
(0.7)
(7.8%)
34.3
Fuel Expense
4.7
3.4
1.3
27.7%
14.2
10.2
4.0
28.2%
55.0
Operations and Maintenance
5.0
4.3
0.7
14.0%
14.9
13.8
1.1
7.4%
61.7
Administrative and General
2.0
2.0
0.0
0.0%
5.2
4.6
0.6
11.5%
18.9
2.6
$ 5.8
69.0%
$ 14.8
6.9
$ 7.9
53.4%
$ 46.5
To tal Revenues
Municipal Sales Revenue
Surplus Sales and Other Revenue
To tal Operating Expens es
Capital Additio ns
$
8.4
$
$ 1.8
1.38x
Annual
Budget
Favo rable
(Unfavo rable)
$ 16.7
Debt Co verage
1.29x
Year to Date
Ac tual
Budget
Favo rable
(Unfavo rable)
1.53x
2.2%
43.0
42.4
(0.6)
(1.4%)
(51.6%)
9.3
4.5
(4.8)
(51.6%)
31.9
12.4%
$ 43.3
$ 38.3
11.5%
$ 169.9
$
$ 5.0
>2% Favorable | 2% to -2% At or Near Budget | <-2% Unfavorable
Below is a summary of key financial variances year to date:
•
BelowBelow-Budget Operating Expenses: Overall operating expenses were 11.5% below budget mainly due to the
items listed below.
o Purchased power expenses were above budget due to supplemental purchases, which were required
during the screen outage at Rawhide and the maintenance issues experienced by the Craig Units. Wind
generation was also above budget. Partially offsetting the above-budget variance were below-budget
purchased reserves as a result of holding additional reserves on the generating units, as well as taking
advantage of other lower cost options.
o Fuel expenses were below budget as a result of below-budget generation and lower coal prices. A soft
surplus sales market, the screen outage at Rawhide, and maintenance issues of the Craig Units
impacted generation. Favorable coal prices for Rawhide Unit 1 and the Craig Units also contributed to
lower fuel expenses. Natural gas is also below budget due to over estimating costs for required testing
of the combustion turbines.
o Operations and maintenance expenses were below budget mainly due to delays and lower expenses,
including chemical purchases, rail car repairs, the document conversion project, combustion turbine
expenses, and transmission expenses.
o Administrative and general expenses were below budget primarily due to delays related to the demand
response pilot program, consulting work, and computer expenses.
•
BelowBelow-Budget Capital Additions: Capital additions were below budget $7.9 million mainly due to scheduling
changes. At this time, projects are estimated to be slightly above budget at the end of the year. See page 9 for
details of significant projects.
•
BelowBelow-Budget Surplus Sales Revenues: As a result of lower generation due to a soft surplus sales market, the
screen outage at Rawhide, and maintenance issues of the Craig units, surplus sales revenues were $4.8 million
below budget. While prices have been below budget, the volume of sales had the largest impact on surplus
sales revenues, representing $4.3 million of the $4.8 million variance.
Page 1 of 11
Page 60
PLATTE RIVER POWER AUTHORITY
SCHEDULE OF REVENUES AND EXPENDITURES, BUDGET TO ACTUAL
March 2016
Non-GAAP Budgetary Basis (In Thousands)
Month of March
Budget
Actual
Favorable
(Unfavorable)
Revenues
Operating revenues
Municipal sales
$
Short-term surplus sales and wheeling
Total operating revenues
13,586
$
13,863
$
277
2,986
1,376
(1,610)
16,572
15,239
(1,333)
Other revenues
Interest income(1)
63
60
(3)
Other income
53
63
10
116
123
7
Total other revenues
Total revenues
$
16,688
$
15,362
$
$
2,812
$
3,030
$
(1,326)
Expenditures
Operating expenses
Purchased power
(218)
Fuel expense
4,644
3,382
1,262
Production expenses
3,892
3,336
556
Transmission expenses
1,138
959
179
Administrative and general
1,987
1,975
12
14,473
12,682
1,791
Total operating expenses
Debt expense
Interest expense
Principal
Total debt expense
779
779
-
1,385
1,385
-
2,164
2,164
-
Capital additions
Production
Transmission
General
Total capital additions
6,595
857
701
1,554
5,738
1,093
173
920
8,389
2,584
5,805
(853)
Total expenditures
$
25,026
$
17,430
$
7,596
Revenues less expenditures
$
(8,338)
$
(2,068)
$
6,270
(1)
Excludes unrealized investment gains and losses.
Page 2 of 11
Page 61
PLATTE RIVER POWER AUTHORITY
SCHEDULE OF REVENUES AND EXPENDITURES, BUDGET TO ACTUAL
March 2016 - YEAR TO DATE
Non-GAAP Budgetary Basis (In Thousands)
March Year to Date
Budget
Actual
Favorable
(Unfavorable)
Annual
Budget
Revenues
Operating revenues
Municipal sales
$
42,987
$
42,409
$
(578)
$
185,598
8,816
3,973
(4,843)
30,200
51,803
46,382
(5,421)
215,798
Interest income(1)
194
178
(16)
1,027
Other income
253
314
61
654
447
492
45
1,681
Short-term surplus sales and wheeling
Total operating revenues
Other revenues
Total other revenues
Total revenues
$
52,250
$
8,952
$
46,874
$
9,686
$
(5,376)
$
217,479
(734)
$
34,263
Expenditures
Operating expenses
Purchased power
$
Fuel expense
14,153
10,192
3,961
Production expenses
11,433
10,537
896
48,018
Transmission expenses
3,542
3,283
259
13,736
Administrative and general
5,204
4,605
599
18,910
43,284
38,303
4,981
169,914
Interest expense
2,338
2,338
-
10,534
Principal
4,154
4,154
-
20,719
-
-
-
6,492
6,492
-
30,990
Total operating expenses
54,987
Debt expense
Allowance for funds used during construction
Total debt expense
(263)
Capital additions
Production
9,959
4,189
5,770
25,613
Transmission
3,356
2,273
1,083
15,330
General
1,532
452
1,080
5,512
14,847
6,914
7,933
46,455
Total capital additions
Total expenditures
$
Contingency reserved to board
64,623
$
-
51,709
$
-
12,914
$
-
247,359
20,000
Total expenditures
$
64,623
$
51,709
$
12,914
$
267,359
Revenues less expenditures
$
(12,373)
$
(4,835)
$
7,538
$
(49,880)
(1)
Excludes unrealized investment gains and losses.
Page 3 of 11
Page 62
PLATTE RIVER POWER AUTHORITY
STATEMENTS OF NET POSITION
Unaudited (In Thousands)
March 31
2016
2015
Assets
Electric plant, at original cost
Land and land rights
Plant and equipment in service
Less: accumulated depreciation and amortization
$
Plant in service, net
Construction work in progress
Total electric plant
14,515
1,277,052
(765,772)
525,795
48,790
574,585
$
14,515
1,272,332
(740,147)
546,700
20,396
567,096
Special funds and investments
Restricted funds and investments
Dedicated funds and investments
Total special funds and investments
28,764
46,468
75,232
33,575
69,894
103,469
16,844
15,796
13,863
4,961
15,864
13,068
5,540
85,936
24,944
19,644
13,150
5,834
9,727
12,370
7,267
92,936
2,291
1,091
3,382
739,135
2,900
1,308
4,208
767,709
878
5,141
6,019
1,689
1,689
183,277
3,228
6,693
9,634
202,832
201,223
6,291
9,324
216,838
16,615
3,064
17,059
3,117
1,540
41,395
244,227
21,980
2,775
16,118
3,466
1,494
45,833
262,671
1,931
613
2,544
10,840
10,840
367,588
25,647
105,148
498,383
335,965
30,110
129,812
495,887
Current assets
Cash and cash equivalents
Other temporary investments
Accounts receivable - municipalities
Accounts receivable - other
Fuel inventory, at last-in, first-out cost
Materials and supplies inventory, at average cost
Prepayments and other assets
Total current assets
Noncurrent assets
Regulatory assets
Long-term prepayments
Total noncurrent assets
Total assets
Deferred Outflows of Resources
Deferred loss on debt refundings
Pension deferrals
Total deferred outflows of resources
Liabilities
Noncurrent liabilities
Long-term debt, net
Capitalized lease obligation
Net pension liability
Other liabilities and credits
Total noncurrent liabilities
Current liabilities
Current maturities of long-term debt
Current portion of capitalized lease obligation
Accounts payable
Accrued interest
Accrued liabilities and other
Total current liabilities
Total liabilities
Deferred Inflows of Resources
Regulatory credits
Pension deferrals
Total deferred inflows of resources
Net Position
Net investment in capital assets
Restricted
Unrestricted
Total net position
$
$
Page 4 of 11
Page 63
PLATTE RIVER POWER AUTHORITY
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
Unaudited (In Thousands)
Twelve Months Ended
March 31
2015
2016
Month of
March
Operating revenues
Sales to municipalities
Sales for resale and other
$
13,863
1,376
$
177,286
19,304
$
170,115
29,124
15,239
196,590
199,239
3,030
3,382
4,311
1,858
2,261
33,446
44,167
62,577
16,269
27,039
27,526
49,771
55,509
15,350
26,996
14,842
183,498
175,152
397
13,092
24,087
Interest income
Other income
Interest expense
Allowance for funds used during construction
Amortization of bond financing costs
Net increase/(decrease) in fair value of investments
65
63
(779)
31
57
758
922
(9,526)
354
(72)
669
950
(10,553)
61
362
227
Total nonoperating revenues (expenses)
(563)
(7,564)
(8,284)
(166)
5,528
15,803
Total operating revenues
Operating expenses
Purchased power
Fuel
Operations and maintenance
Administrative and general
Depreciation
Total operating expenses
Operating income
Nonoperating revenues (expenses)
Income before contributions
-
Contribution of assets to municipalities
Change in net position
(166)
Net position at beginning of period, as previously reported
Net position at beginning of period, adjusted
$
498,383
(155)
5,373
498,549
498,549
Adjustment for change in accounting principle
Net position at end of period
(155)
15,648
495,887
(2,877)
493,010
$
498,383
480,239
480,239
$
495,887
Page 5 of 11
Page 64
PLATTE RIVER POWER AUTHORITY
STATEMENTS OF CASH FLOWS
Unaudited (In Thousands)
Twelve Months Ended
March 31
2015
2016
Month of
March
Cash flows from operating activities
Receipts from customers
Payments for operating goods and services
Payments for employee services
$
Net cash provided by operating activities
14,975
(11,032)
(2,899)
$
196,846 $
(139,926)
(33,241)
199,860
(114,633)
(30,036)
1,044
23,679
55,191
(892)
(2,704)
-
(32,991)
(551)
(21,980)
(9,874)
(15,786)
(649)
(21,060)
(10,866)
(3,596)
(65,396)
(48,361)
847
120
32,001
1,616
(5,944)
1,542
967
33,617
(4,402)
Cash flows from capital and related financing activity
Additions to electric utility plant
Payments from accounts payable incurred for electric utility plant additions
Principal payments on long-term debt
Interest payments on long-term debt
Net cash used in capital and related financing activities
Cash flows from investing activities
Purchases and sales of temporary and restricted investments, net
Interest and other income, including realized gains and losses
Net cash provided by/(used in) investing activities
(Decrease)/increase in cash and cash equivalents
(1,585)
(8,100)
2,428
Balance at beginning of period in cash and cash equivalents
18,429
24,944
22,516
Balance at end of period in cash and cash equivalents
$
16,844
$
16,844
$
24,944
$
397
$
13,092
$
24,087
Reconciliation of net operating income to net cash
provided by operating activities
Operating income
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation
Changes in assets and liabilities which provided/(used) cash:
Accounts receivable
Fuel and materials and supplies inventories
Prepayments and other assets
Deferred outflows of resources
Accounts payable
Net pension liability
Other liabilities
Deferred inflows of resources
Net cash provided by operating activities
$
2,261
27,039
26,996
(285)
(1,234)
(2,975)
2,540
26
314
160
(6,836)
2,388
(5,141)
(200)
3,816
(2,344)
(8,295)
879
(103)
(2,081)
1,260
(2,350)
6,503
1,044
$
23,679
$
55,191
Page 6 of 11
Page 65
PLATTE RIVER POWER AUTHORITY
SCHEDULE OF NET REVENUES FOR DEBT SERVICE
Unaudited (In Thousands)
Twelve Months Ended
March 31
2015
2016
Month of
March
Net revenues
Operating revenues
$
Operations and maintenance expenses,
excluding depreciation and amortization
Net operating revenues
Plus interest income on bond accounts
and other income
Net revenues before rate stabilization
Rate stabilization
Deposits
Withdrawals
15,239
$
196,590
$
199,239
12,581
156,459
148,155
2,658
40,131
51,084
123
1,691
1,626
2,781
41,822
52,710
-
-
-
$
2,781
$
41,822
$
52,710
Power revenue bonds
Allowance for funds used during construction
$
2,164
-
$
27,035
-
$
32,379
(60)
Net revenue bond service
$
2,164
$
27,035
$
32,319
Total net revenues
Bond service
Coverage
Power revenue bond coverage ratio
1.29
1.55
1.63
Page 7 of 11
Page 66
Platte River Power Authority
Operating Expense Variances Exceeding $100,000 - Month of March 2016
Favorable
(Unfavorable)
Description
Coal
Coal was below budget due to generation and price at Craig and Rawhide. Generation was
below budget for all units due to the surplus sales market. The coal prices were also below
budget. Trapper Mine coal prices will be below budget for the remainder of the year as the price
was revised to reflect recent estimates for operations of the mine for 2016. Rawhide Unit 1's coal
price was below budget as a result of favorable market and transportation prices.
$
1,250,862
O&M Materials and Supplies
O&M materials and supplies were below budget due to operations and maintenance expenses at
Rawhide and Headquarters. Rail car repair parts and miscellaneous supplies were not required. In
addition, inventory was issued at Rawhide Unit 1 during the 2015 fall outage. The items being
replaced were sent out to be rebuilt and are now being returned to the warehouse. Timing of BPAC
deliveries also contributed to the below-budget variance.
$
185,676
Contracted Services
Contracted services were below budget mainly due to timing and delays of energy efficiency
projects, substation weed control, software maintenance and support. General operations and
maintenance expenses at Rawhide and Headquarters were not required and joint facility
expenses were lower than expected. Partially offsetting the below-budget variance were abovebudget expenses for the Rawhide Unit 1 screen outage.
$
161,635
Regular Wages
Regular wages were below budget as a result of several vacant positions.
$
152,696
Yampa Operating Expenses
Yampa operating expenses billed by Tri-State were less than anticipated.
$
133,790
Energy Efficiency - Rebates/Incentives
These expenses were above budget due to the unpredictability of the completion of customers'
energy efficiency projects.
$
(135,767)
Medical and Dental
Claims were higher than anticipated. Timing of medical expenses is difficult to predict and large
claims can cause swings in this expense.
$
(195,219)
Purchased Power
Purchased power was above budget due to wind generation and a catch-up of renewable energy
expenses. Partially offsetting the above-budget variance were below-budget purchased reserves
as a result of holding additional reserves on the generating units, as well as taking advantage of
lower cost options.
$
(218,140)
Page 8 of 11
Page 67
Platte River Power Authority
Capital Addition Variances - Year-end Estimates as of March 2016
Capital expenditures are expected to be slightly above budget at the end of the year. The projects listed below are
projected to end the year with a budget variance of more than $100,000. In addition, the amounts below are costs for
2016 and may not represent the total cost of the project.
Project ($ in Thousands)
Budget
POWER PRODUCTION
Yampa Work Orders (Platte River's Share) - The latest revised forecast
received from Tri-State indicates that the Yampa projects will be below
budget at the end of the year.
$
POWER DELIVERY
Fiber Optic Route to Estes Park - This project will be above budget at the
end of the year due to advancing the schedule in order to ensure
completion in 2017. This change will reduce the funds required in 2017,
however, additional funds of $203K are required to complete the 2016
portion of the project.
$
Estimate
Favorable
(Unfavorable)
1,986
$
1,808
$
178
597
$
800
$
(203)
Page 9 of 11
Page 68
PLATTE RIVER POWER AUTHORITY
MONTHLY STATISTICS
March 2016
March
Budget
Actual
12 Months Rolling
Favorable
(Unfavorable)
Budget
Favorable
(Unfavorable)
Actual
Resources (MWh)
Net generation
Rawhide
Craig
Peaking units
195,812
88,784
-
183,672
42,904
155
(12,140)
(45,880)
155
1,991,427
1,086,913
18,576
1,891,607
850,360
58,600
(99,820)
(236,553)
40,024
Purchases
Western LAP
Western CRSP
Wind
Other purchases
Forced outage exchange
Interchange received
Total receipts
8,764
48,817
26,263
368,440
8,764
48,817
32,667
992
122
318,093
6,404
992
122
(50,347)
109,536
502,467
294,629
139,835
4,143,383
109,536
502,467
291,227
259,517
3,900
(3,960)
3,963,254
(3,402)
119,682
3,900
(3,960)
(180,129)
Municipal sales
Estes Park
Fort Collins
Longmont
Loveland
Total municipal sales
11,333
119,823
64,369
59,251
254,776
11,713
122,843
64,049
58,232
256,837
380
3,020
(320)
(1,019)
2,061
130,858
1,508,500
818,255
750,506
3,208,119
131,330
1,528,934
804,393
748,182
3,212,839
472
20,434
(13,862)
(2,324)
4,720
Surplus sales
Short-term surplus sales
108,314
52,791
(55,523)
877,572
592,452
(285,120)
5,350
1,900
6,565
1,900
1,215
57,692
66,300
91,663
66,300
33,971
368,440
318,093
4,143,383
3,963,254
Deliveries (MWh)
Forced outage exchange
Losses and other
Total deliveries
(50,347)
March
Budget
Actual
(180,129)
12 Months Rolling
Favorable
(Unfavorable)
Budget
Actual
Favorable
(Unfavorable)
Coincidental demand (kW)
Estes Park
Fort Collins
Longmont
Loveland
Total coincidental demand
19,667
210,876
109,561
100,592
440,696
17,705
200,441
104,072
96,374
418,592
(1,962)
(10,435)
(5,489)
(4,218)
(22,104)
217,553
2,849,812
1,593,400
1,458,110
6,118,875
214,486
2,799,545
1,534,531
1,426,198
5,974,760
(3,067)
(50,267)
(58,869)
(31,912)
(144,115)
Noncoincidental demand (kW)
Estes Park
Fort Collins
Longmont
Loveland
21,266
200,567
105,541
96,374
239,949
2,804,963
1,550,016
1,430,079
Page 10 of 11
Page 69
Platte River Power Authority
March 2016 - Payments of $50,000 or More
Vendor
Description
Payment Amount
Regular Recurring O&M Payments
Cloud Peak Energy Resources LLC
Trapper Mining Inc
BNSF Railway Company
Colowyo Coal Company
Spring Canyon Energy II LLC
Duke Energy Retail Sales LLC
Medicine Bow Wind LLC
Tri-State G & T
Western Area Pwr Adm-DOE
Basin Electric Power Coop
EDF Trading North America LLC
Alstom Power
Xcel Energy
Wells Fargo
Western States Power Corporation
Clearesult Consulting, Inc.
Orange Energizing Solutions
Western United Electric Supply Corp
First Bankcard Center
Neuco Inc
Epis Inc
Flood & Peterson Insurance Inc
Mcgriff Seibels & Williams Inc
Regular Recurring O&M Payments Total
Total O&M Payments
Coal delivery
Coal delivery
Coal delivery
Coal delivery
Spring Canyon wind energy
Silver Sage wind energy
Medicine Bow wind energy
Yampa O&M
Purchased power (January 2016 CRSP and LAP)
Purchased power
Renewable energy credits
RH parts inventory
Ancillary services
Pension contribution
Project E
Energy efficiency, DSM
Energy efficiency, DSM
Capacitor, CVT, voltage, transformer inventory
Platte River's credit card payment (2 months)
Combustion/Maintenance Opt software maintenance (annual)
Aurora license renewal (annual)
Auto liability insurance premium (annual)
Directors & Officers insurance premium & broker fees (annual)
$1,918,404
1,177,168
981,359
367,131
818,623
252,390
100,100
1,259,976
1,968,963
101,219
134,375
60,111
206,917
243,000
174,600
242,520
52,073
79,308
134,227
51,000
92,000
71,082
98,189
$10,584,735
$10,584,735
Capital Payments
Municipal Subdistrict Northern Colorado Water
CG Power Systems USA Inc
Brink Constructors Inc
Air Cure Incorporated
Teledyne Advanced Pollution Instr Inc
Total Capital Payments
Windy Gap firming project
Crossroads substation T2 transformer
Transmission line maintenance
RH tripper dust collection system
RH CTs - replace CEMs CO analyzers
GRAND TOTAL: PAYMENTS OF $50,000 OR MORE
$1,918,211
486,720
180,413
74,287
63,240
$2,722,871
$13,307,606
Page 11 of 11
Page 70
Page 71
April 2016 Management Report
CORPORATE SERVICES
Safety. Below are the Y-T-D injury stats for 2016 as of payroll date of April 2. Unfortunately we
experienced two recordable injuries in March for a total of three year to date.
Recordable Incident Rate
Lost Time Case Rate
DART (Days away restricted)
2014
3.5
0.5
1.0
2015
2.19
0.44
0.87
2016 (As of 4/02/16)
5.06
0
0
Physical Security. As part of our planned emphasis on enhanced physical security, we have increased
guard staffing to provide expanded coverage at Headquarters and to conduct random patrols of
substations. Security staffing has also been increased at the construction entrance to the solar site at
Rawhide.
As a result of two recent security incidents at the Dixon Creek substation, both of which caused
significant damage to the block wall, we have received a preliminary estimate for repairs at
approximately $100,000.
Human Resources. An internal team is currently working on development of the power plant’s
simulator which will mirror the new distributed control system and aid in plant operator training.
A trainer from Mountain States Employers Council conducted an ethics awareness course at both
Rawhide and Headquarters, which explored common ethical dilemmas in the workplace. This training
reinforced our continued focus on ethics and compliance.
This year’s expanded “Take Your Daughters and Sons to Work Day” was designed to provide a more
structured and educational approach for those employees who want to share their work experience with
a child. Activities include a Rawhide tour, bison tour, lunch and one-on-one time with the parent.
Information Technology. We worked with staff from Fort Collins and Longmont over the last three
months to prepare a detailed Customer Information System (CIS) budget for 2016 – 2018 that
addresses several reliability and security risks. The scheduled cutover to a new database server
environment for CIS was successfully completed on April 2. The cutover itself took about 12 hours and
was the culmination of seven months of planning, coordination, and testing with participants from Platte
River, Fort Collins, and Longmont.
Platte River participated in the LPPC cyber security task force kick off meeting. The primary goals
included finalizing a task force charter, establishing 2016 priorities and work plan, and establishing
communication methods for cyber related issues.
ENVIRONMENTAL SERVICES & COMPLIANCE
Financial Audit Report Filed with State. An electronic copy of BKD’s audited financial report for
December 31, 2015, was filed with Colorado’s Office of the State Auditor as required by the Local
Government Audit Law.
Page 72
NERC Alert. The North American Electric Reliability Council (NERC) issued an industry wide alert in
February regarding the cyber attacks in Ukraine. Registered entities were instructed to review their
internal policies and practices and compare them against recommendations issued by NERC in the
alert. Platte River has already instituted many of the recommendations and will implement the
remaining recommendations in the near future. Platte River acknowledged the alert and submitted a
progress report in April. We expect periodic follow-up reporting from NERC going forward.
Critical Infrastructure Protection (CIP) Standards Transition. Staff conducted an internal audit of all
CIP Version 5 documentation in March in preparation for the July 1, 2016 enforcement deadline. No
compliance issues were found. Compliance staff is working with CIP subject-matter-experts to
determine firm dates to officially declare compliance with Version 5, thus setting a bookend for NERC/
Western Electricity Coordinating Council (WECC).
EPA Clean Power Plan. Significant uncertainty surrounds this topic. Platte River staff continues to be
engaged in the process at all levels including participating in stakeholder meetings and assessing
impact of various factors through modeling.
Coal Combustion Residuals (CCR) Rule Implementation. Environmental Services staff is working
closely with the Colorado Department of Public Health and Environment and other utilities with the
Colorado Utilities Coalition in a stakeholder process to help develop a State Implementation Plan (SIP)
and ensure Platte River interests are considered and impacts minimized.
North American Electric Reliability Corporation Member Representatives Committee (NERC
MRC). Staff is working with our public power trade organizations to provide input from the MRC on two
issues of particular interest to the NERC Board of Trustees (Board) as it prepares for its May 4-5, 2016,
meetings in Chicago, IL. Jackie Sargent is a member of the MRC and will represent state and municipal
utilities at the meeting. The first issue addresses NERC’s future long-term reliability assessments in
light of the changing resource mix, increases in distributed generation and load management. The
second issue addresses the redesigned NERC strategic plan framework.
FINANCE
Monofill Post-Closure Reclamation Liability Filing. Platte River is required to file a Solid Waste
Facilities Closure Estimate and Proof of Financial Assurance Annual Report with the State within ninety
days of year-end. The report estimates the current closure and post closure care costs for the Rawhide
on-site ash disposal facility and shows Platte River’s ability to pay the future costs. The report, filed in
March, estimated closure costs to be $290,129.
Certificate of Non-Default Filing. As required by Platte River’s General Power Bond Resolution (No.
5-87), a Certificate of Non-Default, along with a schedule of insurance, and audited financial statements
were filed on March 31 with Platte River’s trustee, Wells Fargo Bank.
2016 Budget Update. At this time, capital additions are under budget. However, as mentioned in last
month’s Board meeting, staff is working on securing land for a new Headquarters building. When this
occurs, a resolution requesting that the Board approve a transfer of contingency funds will be required.
Since there is variability in capital projects, staff will continue to monitor spending estimates to
determine the appropriate amount needed. Capital additions may remain under budget at year-end if
projects are not completed. As a result, remaining funds would need to be carried over into 2017 to
complete those projects.
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2017 Budget Preparation. Platte River’s 2017 budget process has begun. We continually look for
ways to improve the existing process. This year, based on staff feedback, the budget process was
initiated earlier than in previous years to allow more time for preparing departmental budgets. Meetings
were held with staff to review forms, outline processes, and answer questions as a way to facilitate
departmental budget preparation. Below is a condensed schedule to show the overall budget process.
March to May
Kickoff meetings and preparation of budget details by department
June
Data compilation and reporting
July
Senior management and GM/CEO budget review
August
Refine budget and document preparation
September
October
Budget work session with Board
Review budget results at business meeting and with Utility Directors
First public hearing and Board review of budget modifications
November
Prepare final budget document
December
Second public hearing, final budget review with Board, and request
adoption
CUSTOMER SERVICE and COMMUNICATIONS & MARKETING
Media. Staff worked with the Coloradoan on an article regarding the request from Fort Collins for a
study of possible separate resource portfolios and rate structures. Also, a reporter from the Financial
Times made an inquiry about Platte River’s retirement plan. A copy of the plan was provided and the
reporter was referred to our contact at Innovest.
Marketing. As part of our branding plan, internal training for key stakeholders will be conducted to
support the new graphic and editorial standards. As part of this development, the Rawhide tour process
and content is being revised and standardized to improve the overall experience for our guests.
Community. Platte River is again supporting Arbor Day events across the municipalities. Also, staff is
participating in the Colorado Business Reads book drive again this year. Lastly, we will be attending the
ClimateWise Envirovation event April 28.
Efficiency WorksTM. We are finalizing our media buys for the remainder of 2016, with a focus on radio.
The campaign will be during the second half of the year to help create momentum going into 2017.
Based on feedback from the municipalities, we will look at updating and improving the creative aspects
of our advertising for the residential sector.
Energy Efficiency (EE) Programs. Year to date in 2016 a total of $1.1 million has been spent on
common efficiency programs, resulting in 3,150 MWh of new energy savings and 610 kW of new
summer peak demand reduction. By year’s end, total efficiency program investment is estimated to be
at budget, $6.1 million, with $3.3 million from Platte River and the $2.8 million from the Municipalities.
The following table summarizes services provided during 2015 and year-to-date 2016, as well as
projected results for 2016.
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Customer
Segment
Service provided
2016
Results
YTD
21
Commercial &
Industrial
2016
Results projected
by year end*
300
Efficiency assessments
Efficiency project
132
800
rebates
Energy savings (MWh)
3,150
17,000
Residential
Efficiency assessments
247
800
Discounted efficient
28,099
100,000
lighting products
Energy savings (MWh)
0**
3,000
Totals
Energy savings (MWh)
3,150
20,000
* Projected results are based on available budgets and estimates of customer participation.
** Energy savings due to the 28,099 discounted lighting products have occurred, but an
accurate estimate is not currently available due to a transition between two different program
systems.
Customer participation in programs has exceeded our expectations this year and our commitment of
rebate funding is running ahead of plans. In particular, participation to date in Loveland has met both
Platte River’s and Loveland’s initial budgets and energy savings goals. As a result, we have stopped
accepting applications for new commercial projects and have begun a waiting list for 2017. Loveland
staff has been working to identify additional sources of money to be able to fund some of the projects
on the waiting list in 2016, and to fund pilot programs anticipated to begin later in 2016. Participation in
Longmont also may exceed available budgets before the year ends. Already Platte River and Longmont
staffs have decided to reduce the per-customer, per-year incentive cap from $50,000 to $25,000 in an
effort to slow the rate of spending. Even though participation in Fort Collins has also been higher than
anticipated, funding for Fort Collins appears to be adequate due to supplemental funding provided by
Fort Collins, and Fort Collins is currently considering allocating additional funds to common programs.
Estes Park also appears to have adequate funding, though this is being watched closely.
Demand Side Management (DSM) Program Management Software Update. Work continues on
implementation of the DSM Program Management Software by Platte River staff, Municipal staff and
Nexant (project consultant and vendor). The new system is now expected to be implemented in May
2016. This software will enable customers and their contractors to apply for rebates and check on
rebate status via the internet. In addition, it will improve administration efficiency and accuracy of rebate
application review, processing, reporting, and information sharing among Platte River and Municipal
staff. A Software as a Service (SaaS) agreement provides terms and conditions for Platte River’s and
the Municipalities’ staffs’ use of the software. Platte River has executed this agreement and it is being
reviewed by the Municipalities.
Community Solar Program Update. Planning activities continue for a potential community solar
program. A draft RFP is being circulated within Platte River before being provided to Municipality staffs
for review and comment. A draft Intergovernmental Agreement for Demand Side Management and
Distributed Energy Resource Program Partnership has been circulated to Municipality staffs for review.
Loveland and Longmont staffs have reviewed and commented on the IGA. Reviews by Fort Collins and
Estes Park are in process. Pending the results of their review, we anticipate bringing the IGA to the
Board during the May Board meeting, then circulating it to the Municipalities for approval by councils
and boards.
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Feasibility Study for Combined Heat and Power (CHP) at CSU. The design consultant has gathered
information about the existing infrastructure and projected loads in order to determine the design
narrative and modeling approach. Three items are being examined as part of the analysis: power feeds,
natural gas pressures and emission requirements. 1) The existing power feeds to CSU are sized for 6
MW and are influencing the equipment selections and capacity options for the CHP plant. An electrical
team will meet in late April to review proposed locations for interconnections. 2) A mechanical team is
researching what natural-gas pressures are available from the utility. In order to supply the existing
steam heating plant with sufficient steam pressure, turbines would be used and the turbines require
high-pressure natural gas. 3) An environmental team is investigating state environmental regulation
requirements for replacing the existing, natural gas steam boilers with a new, natural gas CHP plant.
The consultant is expected to deliver the final report in summer, 2016.
OPERATIONS
Windy Gap Firming Project Update. There have been some significant milestones for the Windy Gap
Firming Project over the past month. On March 28, the Colorado Department of Public Health and
Environment issued its 401 Certification (state water quality certification under the federal Clean Water
Act section 401) for the Windy Gap Firming Project. This is the next to the last step in getting the
project permitted. The final step in the permitting process is the federal 404 wetlands permit from the
U.S. Army Corps of Engineers, which is anticipated to be issued in the next few months.
On April 6, Northern Water staff, along with several Windy Gap Firming Project participant
representatives (including Loveland and Platte River) met with Governor John Hickenlooper to ask for
the Governor’s endorsement of the project. On April 13, the State of Colorado officially endorsed the
Windy Gap Firming Project and Chimney Hollow Reservoir when John Stulp, Governor Hickenlooper’s
Water Policy Advisor, made the announcement at Northern Water’s Spring Water Users meeting in
Loveland. Reading a letter signed by Governor Hickenlooper, Stulp told the 200 attendees that “this is
the State of Colorado’s first endorsement of a water project under the Colorado Water Plan, which was
finalized last November”. Hickelooper’s letter also stated that the Windy Gap Firming Project aligns with
the key elements of the Colorado Water Plan, and that “Northern Water and its many project partners
have worked diligently, transparently and exhaustively in a collaborative public process that could stand
as a model for assessing, reviewing and developing a project of this nature”. The state’s endorsement
of the Firming Project culminates 13 years of diligent effort and lengthy negotiations to permit and
authorize this project.
With respect to project financing, the Request for Proposal (RFP) process to hire a Municipal Advisor to
investigate the various financing options available for this project is nearing completion. A firm has been
selected, and contract negotiations are underway. Platte River has been actively involved in this
process, and it is anticipated that the firm will have financing recommendations/options to the Firming
Project participants by the end of the summer or early fall.
The engineering design phase is also getting underway with the RFP process for an engineering firm.
Proposals are being considered from two firms, and interviews are scheduled for the last week in April.
It is expected that a firm will be selected in May, and execution of a contract, including a finalized scope
of work, will happen in the following month or two. Design is scheduled to last for approximately two
years, and construction is planned to begin in 2018. The firming project is estimated to be complete and
ready to begin filling by the spring of 2021 or 2022.
Windy Gap Project Final Payment. Formal efforts to develop and construct the Windy Gap Project
began in 1967 when the water rights on the Colorado River were filed. The project was financed
through Windy Gap Water Revenue Bonds issued by the Municipal Subdistrict of Northern Colorado
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Water Conservancy District beginning in the late 1970’s. Following completion and approval of an
Environmental Impact Statement and acquisition of 23 permits and licenses, Windy Gap Project
construction began in July 1981. The project was completed in 1985 and began delivering water to
Municipal Subdistrict allottees in July 1985. The final payment to be made by project allottees on the
last bonds outstanding is December 2017. In March 2016 it was determined that there was enough
money in project reserve funds to fund an Escrow Account to retire the principal and interest on the
remaining debt as it comes due. On April 14, 2016, the outstanding debt was defeased by Resolution of
the Municipal Subdistrict Board. Funding of the Escrow Account will be at the end of April 2016. At that
time the Windy Gap Project Bonds will be considered to be discharged and the Windy Gap Project free
of debt.
Rawhide Water Supply Update. There continues to be some uncertainty with the water supply for
2016. There has not been any Windy Gap water in the system since the spring of 2014, which has led
to Platte River operating in an alternate water supply mode. In this situation, leased C-BT water is used
as collateral in-lieu of Windy Gap water to meet all of the critical process water needs, and some of the
cooling water needs. Adequate quantities of C-BT water could not be leased this past winter to meet
the cooling water needs under the Reuse Plan, so Windy Gap Short operations are in place (special
arrangement with the City of Fort Collins for the Reuse Plan and MOU requirements). Resources are
sufficient to supply the process water and cooling water needs through May of 2016. Thus far, the
impacts of Windy Gap Short operations to Platte River have been minimized due to free river conditions
(utilizing junior Poudre River water rights) and storage of some effluent in Fossil Creek Reservoir, which
can be pumped at a later time to the Rawhide cooling reservoir. The opportunity to pump Windy Gap
water usually begins in April, however; because the level in Lake Granby is relatively full, there may not
be any room to store Windy Gap water depending on runoff conditions. The decision has been made at
this time to not pump any Windy Gap water and see what the spring brings. There could be an
opportunity to pump Windy Gap water later in the spring, or even into early summer. Staff will continue
to monitor the water conditions and the rental water market, with the hopes of either utilizing pumped
Windy Gap water if that becomes available, or leasing additional C-BT water.
Rawhide Coal Price Lock. As staff reported to the Board in 2015, there are three methods that can
determine the price paid for Rawhide coal; the default index price, a price locking option, and/or a
negotiated fixed pricing. For 2016 coal deliveries, the price was determined by a combination of two
price lock options for approximately two-thirds of the coal, and the default index was utilized for the
remaining balance of coal deliveries. The final weighted average price for 2016 coal was favorable to
Platte River.
The price lock option window for 2017 coal deliveries began in January 2015, and terminates at the end
of June 2016. At the end of April 2015, given favorable market conditions and per the price lock
procedures, a price lock was entered into for a portion (400,000 tons) of the total 2017 Rawhide coal
nomination of 1,250,000 tons. Prices continued to decline through the remainder of 2015, and into the
first quarter of 2016. This led to a second price lock that was exercised in accordance with price lock
procedures on March 24, 2016 for the 2017 delivery term for 850,000 tons. This second price lock
provides price certainty and secures all of the Rawhide coal needs for 2017. The final weighted
average price for 2017 coal is favorable compared to next year’s forecast, and is approximately
$0.80/ton below our 2016 pricing.
The price lock option window for 2018 coal deliveries began in January 2016, and remains open
through September 2017. Staff will continue to monitor pricing for the 2018 Rawhide coal needs.
Mountain West Transmission Group (MWTG). The MWTG consists of seven interconnected Rocky
Mountain area transmission owners that currently have and administer individual transmission tariffs.
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These owners, including Platte River, are studying the costs and benefits of replacing individual
company transmission tariffs with one regional transmission tariff that would provide transmission
system benefits for Platte River. First, a regional tariff may reduce Platte River’s transmission costs by
potentially eliminating the current business practice of pancaked rates. Transmission rate pancaking
occurs when transmission customers pay a tariff for each transmission system used in the delivery
power. For example, under a regional tariff Platte River would cease paying Western’s tariff to deliver
our 72 MW of Silver Sage and Spring Canyon wind energy to our load. Second, since pancaked rates
are eliminated there is no incentive to construct duplicate facilities to bypass wheeling charges. Third,
Platte River will benefit from additional opportunities for power purchases, surplus sales and new
generation. For example, Platte River could exchange power under the regional tariff with all MWTG
participants, and also participate in new generation sited anywhere within the MWTG footprint and
deliver the energy to load under one tariff. And finally, a regional transmission tariff lays the foundation
for the development of organized energy markets that create opportunities for generation benefits.
The MWTG retained a consultant experienced in regional transmission rates to assist in the evaluation
of various rate designs. The MWTG participants chose an 8-Zone License Plate Rate for serving load
within the MWTG footprint and a Regional Through and Out Rate (ROTR) for moving power through or
out of the MWTG footprint.
On March 31, 2016, the MWTG participants signed a non-binding Memorandum of Understanding to
document issues on which the group reached consensus such as a method for mitigating impacts to
participants who will have increased transmission costs due to loss of revenue from pancaked rates.
Other issues are to be determined such as the method for transmission planning and cost allocation of
transmission projects within the regional footprint.
The MWTG also agreed to participate in an energy market study with the intent to determine the added
value that the common tariff and energy market will have to power supply and generation. This study
would consist of a complete simulated energy market with a day ahead and real time energy dispatch
across the Mountain West footprint. This study will be completed by the end of 2016.
RESOLUTIONS & POLICY REVIEW
Platte River Water Discussion. Work has been focused on the finalization of the Platte River Water
Resources Reference Document. At the April Board meeting, a finalized version of the document will be
distributed, and will include feedback received since the March Board meeting. This document is a
historical reference document that will be updated on an annual basis.
With the completion of the reference document, efforts can now be focused on strategic water
discussions, which will lead to Board decisions that will be fundamental in the development of a Platte
River water policy. Time is of the essence for these discussions as some of the key decision points are
nearing milestones, such as the Windy Gap Firming Project. Some portions of upcoming discussions
may fall within the parameters of matters subject to an executive session. The goal is to have a Boardapproved Water Policy and Resolution by the fall of 2016. This Water Policy will be used to guide future
Platte River water decisions.
GENERAL & FOLLOW UP ITEMS
Rawhide Flats Solar Update. Overall site civil work is complete. Module deliveries are ongoing and
will continue while the racking and tracking systems assembly begins. The electrical contractor has
mobilized and will begin trenching soon.
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Delivery of the 34.5kV interconnection switchgear has been delayed from the end of May to mid-July
due to equipment complexity impacting design time and supplier personnel changes. No impact to the
Commercial Operation Date is expected.
RMEL Scholarship. As reported previously, Platte River consolidated its annual scholarship process
with the RMEL scholarship program, intended to support students interested in a career in the electric
utility industry. We are pleased to announce the selection of Mitchell Khouri as the 2016 recipient of the
RMEL Platte River Power Authority scholarship. Mitchell graduated from Fort Collins high school,
resides in Fort Collins, and attends the Colorado School of Mines. He has expressed an interest in
renewable energy.
Headquarters Campus. As of Monday, April 25, we are engaged in discussions and the offer/counter
offer process with the seller/developer of a preferred land parcel, and continue to explore other land
options.
We have begun drafting a project charter, communication plans and an RFQ to select an architect or
engineer to lead the design process, and are putting together an internal project team. Key areas of
focus for us will be on employee engagement and the opportunity for the workforce to be “heard” during
the design phase, as well as the exploration of current design trends and best practices.
There are not yet any changes to the preliminary timeline. We currently plan to work through the design
phase during the balance of 2016 and the first and second quarter of 2017. Then, if all involved choose
to move forward with construction, we anticipate that phase to last from the third quarter 2017 through
2018. However, this timeline is subject to change depending on the process and decisions made along
the way.
Customized Resource Planning Portfolio Modeling. During the March Board meeting, Platte River
staff was directed to develop a draft project charter to address the collaborative resource modeling
project for the Municipalities. This project will be managed using Platte River’s project management
framework. Platte River will work with Estes Park, Fort Collins, Longmont, and Loveland utility staff to
create customized resource models for each municipality based on inputs provided by each utility. A
draft project charter will be provided at the April Board meeting. For this project to be successful, all
parties must be engaged and all required information must be provided in a timely manner.
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Memorandum
Date:
April 20, 2016
To:
Board of Directors
From:
Jackie A. Sargent, General Manager/CEO
Dave Smalley, Chief Financial and Risk Officer
Julie Depperman, Treasury Manager
Subject:
Debt Financing Recap
On April 12, Platte River sold $147 million of the Series JJ Bonds using a competitive sale
process. Platte River received nine bids, which were evaluated on a true interest cost (TIC)
basis and ranged from the winning bid of 2.19 percent to the highest bid of 2.35 percent. The
bonds’ all-in TIC was 2.22 percent. The winning bidder was JP Morgan Securities LLC. The
bonds were sold at a premium of $32 million, providing total bond proceeds of $179 million and
an average life of 10 years. Proceeds of $60 million will be used to fund production and
transmission capital projects. Proceeds of $119 million will be used to advance refund a portion
of the outstanding Series HH bonds. The net present value savings of the refunded bonds is
$13.7 million (12.9 percent). The refunding will reduce annual average debt service by
approximately $1.1 million per year through 2029. The Series JJ bonds are the lowest fixed rate
bond issue in Platte River’s history. The transaction will close April 26, 2016.
At the Board meeting, staff will provide a brief summary of the Series JJ Bond issuance.
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Memorandum
Date:
April 20, 2016
To:
Board of Directors
From:
Jackie A. Sargent, General Manager/CEO
Jason Frisbie, Chief Operating Officer
Andy Butcher, Director of Operations
Subject:
Integrated Resource Plan
Platte River is required to submit Integrated Resource Plans (IRPs) to the Western Area Power
Administration (Western) at five-year intervals. The continued right of Platte River to receive
federal hydropower energy and capacity requires IRP filings. Platte River submitted our last IRP
to Western on June 10, 2011, one year ahead of the 2012 deadline. Recently it was determined
that Platte River’s next IRP would be due on June 15, 2016. Fortunately over the past two
years, Platte River has undertaken key efforts to prepare for submission of the next IRP,
including public participation and development of planning cases that were presented to Platte
River’s Board in 2015. These cases will be the basis for the 2016 IRP.
Western has six main requirements for IRP submissions:
1. Identify and compare all practicable energy efficiency and energy supply resource
options
Over the past two years, Platte River engaged in an extensive review of portfolio options
to address potential future CO 2 reduction needs, and presented findings to the Board in
August 2015. The results of this study are the foundation for the 2016 IRP, and will be
included in the “Portfolio Analysis” section of the IRP report.
2. Include action plan with timing set by customer
The results of Platte River’s analysis are summarized in an Action Plan, which will be
included in the “Executive Summary” of the 2016 IRP Report.
3. Describe efforts to minimize adverse environmental effects of new resource acquisitions
The primary focus for Platte River’s 2016 IRP has been to assess portfolios that would
achieve CO 2 reductions to meet the future requirements of the EPA’s Clean Power Plan
as well as the resource needs of our customers. An overview of Platte River’s
environmental objectives will be included in the “Environmental Analysis” section, and
impacts will be addressed in the “Summary and Findings” section.
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MEMO - Integrated Resource Plan
April 2016
Page 2 of 2
4. Provide ample opportunity for full public participation
Platte River began its public participation process in 2014 with its IRP Listening
Sessions. Outreach continued in 2015, with special reports being provided at City
Council meetings and other public forums. A summary of the process can be found in
the “Public Participation” section. The Generation Technology Review is available as
an appendix to the 2016 IRP.
5. Conduct load forecasting
Platte River’s official 2015 Load Forecast acts as one of the building blocks for the 2016
IRP. A summary of the forecast will be included in the “Load Forecast” section of the
IRP report.
6. Include brief description of measurement strategies for options identified in the IRP to
determine whether objectives are being met
Measurement of IRP strategies will be addressed following the IRP Action Plan in the
“Executive Summary” section.
A preliminary draft of the IRP document in hardcopy format will be provided at the April Board
Meeting. Director of Operations Andy Butcher will also give a presentation at the meeting about
the 2016 IRP process and will be available to answer any questions. No action from the Board
is required at this time. At the next Board Meeting in May, staff will provide a final draft and will
request approval. The final 2016 IRP will be submitted to Western by the June 15 deadline.
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Memorandum
Date:
April 20, 2016
To:
Board of Directors
From:
Jackie A. Sargent, General Manager/CEO
Heather Banks, Fuels and Water Manager
Subject:
Water Resources Discussion/Presentation
During the April Board Meeting, staff will be providing a presentation related to water resources
at Platte River. This presentation will set the stage for a series of upcoming strategic water
discussions that will aid in the development of a comprehensive water policy at Platte River.
Some portions of upcoming discussions may fall within the parameters of matters subject to an
executive session. The goal is to have a Board-approved Water Policy and Resolution by the
fall of 2016. This Water Policy will be used to guide future Platte River water decisions. Time is
of the essence for these discussions as some of the key decision points are nearing milestones,
such as the Windy Gap Firming Project.
The content presented during the April Board meeting is intended to be informational in nature,
and no Board action will be required this month. Staff welcomes feedback and would be happy
to answer any initial questions at the April Board meeting.