Page 1
Board of Directors Regular Meeting
2000 East Horsetooth Road, Fort Collins, Colorado
Thursday, February 25, 2016, 9:00 a.m.
Call to Order
1) Consent Agenda
a. Minutes of the Regular Meeting of December 10, 2015
b. Transfer of 2015 Capital Budget Carryover to 2016 Budget
c. GM/GC Annual Review Policy Revision
d. Incorporation into the Record of Resolution 14-15
(2016 Regular Meeting Schedule)
2) Items Removed from Consent Agenda
3) Public Comment
Motion to Approve
Resolution 01-16
Annual Meeting
4) Platte River Power Authority Annual Meeting
a. Annual Election of Officers
b. Annual Retirement Committee Appointments
c. 2015 Operations and Financial Review
Resolution 02-16
Resolution 03-16
Other Action Items
5) Windy Gap Firming Project Funding Resolution
Resolution 04-16
a. Fifth Interim Agreement, Windy Gap Firming Project – Design Phase
Management Reports
6) Legal & Governmental Affairs Report
7) January 2016 Operating Report
8) January 2016 Financial Report
a. Debt Financing Overview
9) Management Report
a. Community Solar Update
b. Headquarters Campus Discussion
Executive Session
10) Headquarters Campus Discussion
11) Reconvene Regular Session
Roundtable
Adjournment
Motion (2/3 vote required)
Page 2
Page 3
2016 BOARD MEETING PLANNING CALENDAR
FEBRUARY 25, 2016
Regular Board of Directors Meeting
and Annual Meeting:
• Transfer of 2015 Capital Budget
Carryover to 2016 Budget
• Incorporation into the Record of
Resolution 14-15 (2016 Regular
Meeting Schedule)
• Election of Officers
• Appointment of Retirement Committee
Members
• 2015 Operations Review
• 2015 Financial Review
• Debt Financing Overview
• GM/GC Annual Review Policy
Revision
• Loveland FEMA Solar Review
• HQ Campus discussion
Retirement Committee Meeting
APRIL 28, 2016
Regular Board of Directors Meeting:
• Acceptance of 2015 Annual Report
• Revision to TARIFF— SCHEDULE 4:
Wholesale Transmission Service
• Mountain West Transmission Group
• Debt Financing Recap
• Clean Power Plan Modeling Update
• Water Policy Discussion
MAY 26, 2016
Regular Board of Directors Meeting
• Integrated Resource Plan (IRP)
Update
• Synopsis of State Legislation of
Interest
• Water Policy Discussion
MARCH 31, 2016
Retirement Committee Meeting
Regular Board of Directors Meeting:
• Retirement Committee Report
• 2015 BKD Audit Report and Fee
Proposal/Contract Extension
• Debt Financing Authorization
• HQ Campus decision
• FEMA Solar Approval
• Community Solar Program Update
• Water Policy Discussion
• Fort Collins Substation Maintenance
and Engineering Support Services IGA
Calendar subject to change. Used for planning purposed only.
JUNE 10 – 15, 2016
APPA National Conference
Phoenix, AZ
www.publicpower.org
Last updated: February 2016
Page 4
2016 BOARD MEETING PLANNING CALENDAR
JULY 28, 2016
Regular Board of Directors Meeting:
• Retirement Committee Report
• Energy Efficiency Program Update
• Community Solar Program
AUGUST 25, 2016
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
• Water Philosophy and Policy
Discussion
• Clean Power Plan Update
Regular Board of Directors Meeting
• Wholesale Rate Forecast
• Clean Power Plan Update
NOVEMBER 18, 2016
Retirement Committee Meeting
No Board of Directors Meeting
Retirement Committee Meeting
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
Calendar subject to change. Used for planning purposed only.
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
Last updated: February 2016
Page 5
2016 Board of Directors
Term Expiration
Town of Estes Park
P.O. Box 1200, Estes Park, Colorado 80517
Mayor Bill Pinkham—Vice Chairman, Board of Directors
Reuben Bergsten
April 2016
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
Page 6
Page 7
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
Page 8
Page 9
Regular Meeting Minutes of the Board of Directors
2000 East Horsetooth Road, Fort Collins, Colorado
Thursday, December 10, 2015
ATTENDANCE
Board Members
Representing Estes Park: Mayor Bill Pinkham 1 and Reuben Bergsten
Representing Fort Collins: Mayor Wade Troxell 2 and Mayor Pro Tem Gerry Horak
Representing Longmont: Mayor Dennis Coombs and Tom Roiniotis
Representing Loveland: Mayor Cecil Gutierrez 3 and Steve Adams 4
Platte River Staff
Jackie Sargent (General Manager/CEO)
Joe Wilson (General Counsel)
Jason Frisbie (Chief Operating Officer)
Dave Smalley (Chief Financial & Risk Officer)
John Bleem (Strategic Planning & Customer Service Director)
Karin Hollohan (Corporate Services Director)
Pete Hoelscher (Communications & Marketing Director)
Heather Banks (Fuels & Water Manager)
Wade Hancock (Financial Planning Manager)
Brodie Griffin (Facilities, Fleet & Security Manager)
Jeff Menard (Facilities & Security Supervisor)
Baird Cook (Facilities Project Coordinator)
Chris Wood (Environmental Services Manager)
Brad Decker (Strategic Planning Manager)
Andy Cofas (Plant Manager)
Shelley Nywall (Controller)
Mindy Pfleiger (Sr. Accounting Analyst)
Tracy Goodwin (Property & Fuel Accountant)
Angela Walsh (Executive Assistant)
Guests
Kevin Gertig (Fort Collins Utilities Executive Director)
Larry Rooz (Loveland Utility Commissioner)
Robert Coker (CH2M Hill Senior Master Planner, Senior Project Manager)
Jeff Cross (CH2M Hill Vice President Global Account Manager)
Director Pinkham arrived at 10:20am during the Executive Session.
Director Troxell dismissed himself at 11:28am.
3 Director Gutierrez dismissed himself at 12:01pm.
4 Director Adams dismissed himself at 12:49pm.
1
2
Page 10
Regular Board Meeting Minutes: December 10, 2015
CALL TO ORDER
Chairman Roiniotis called the meeting to order at 9:01 a.m. A quorum of Board Members was
present and the meeting, having been duly convened, was ready to proceed with business.
Due to two Directors needing to leave by noon, Jackie Sargent, general manager and CEO,
requested that all agenda items requiring approval and the executive session be moved up
ahead of all reporting items on the agenda. A revised agenda was handed out reflecting the
change of order.
Director Gutierrez moved to approve the revised agenda as presented. Director Bergsten
seconded, and the motion carried 7-0.
ACTION ITEMS
(1)
Approval of the Regular Meeting Minutes of October 29, 2015
Director Adams moved to approve the Minutes as presented. Director Troxell seconded, and
the motion carried 7-0.
(2)
Public Comment
None.
(3)
Retirement Committee Report
(presenter: Dave Smalley)
Dave Smalley, chief financial & risk officer, reported the retirement committee met on Friday,
November 20 at Platte River. The Defined Benefit Plan’s investment consultant provided
performance reporting through September 2015 and also provided an educational session on
the U.S. dollar, stocks and rising interest rates. The committee discussed making assumption
changes to the Plan based on discussions with the Plan’s actuary, Platte River’s auditors, and
investment advisors. The Plan’s actuary and attorney provided the recommended changes to
the Plan document needed to maintain actuarial equivalence for the lump sum distributions.
The committee approved a motion to present the modified plan to the full Board for
consideration with a recommendation that the Board approve the modified plan. The revised
plan is provided in the full Board packet.
Director Coombs moved to accept Resolution No. 13-15, modifying the Defined Benefit Plan as
presented. Director Adams seconded, and the motion carried 7-0.
(4)
2016 Proposed Board of Directors Meeting Schedule
(presenter: Jackie Sargent)
The proposed dates for the 2016 Board of Directors Regular Meeting Schedule were outlined
within the resolution.
Director Gutierrez moved Resolution No. 14-15, accepting the 2016 Board of Directors meeting
schedule as presented. Director Bergsten seconded, and the motion carried 7-0.
Page 2 of 7
Page 11
Regular Board Meeting Minutes: December 10, 2015
(5)
2016 Proposed Annual Budget (Second Public Hearing)
(presenter: Shelley Nywall)
Staff presented the final updates to the 2016 Annual Budget. Ms. Nywall acknowledged staff for
their team effort during the year long process to develop the 2016 Budget. Budget changes since
the October Board meeting were: rate increase for reserve purchases from Xcel Energy resulting
in an impact of $45K, fuel expenses for Craig Unit 1 and 2 are higher due to an effort to reduce
coal inventory levels – spreading fixed costs over fewer tons – resulting in a $1.3 million
increase, and professional services for assistance with modeling and support related to analysis
of the Clean Power Plan resulting in a $0.1 million increase. Overall, the result of these changes
is a $1.4 million increase in operating expenses. The impact of these changes in relation to the
Strategic Financial Plan indicators are: net income is projected to be $10.7 million, debt service
coverage of 1.53, and unrestricted days cash on hand of 224 days, all of which are above the
strategic financial plan minimums. Budget revenues are projected to be $217.5 million from
municipal sales, surplus sales, other income, and interest income. Expenses are projected to be
$242.9 million representing all operating, debt and capital expenses. Key focus areas for the 2016
Budget are the same as in previous presentations: Tariff 1 rate increase of 4.5%, expanding
renewable energy with the Rawhide solar generation addition, DSM/EE program expansion,
Craig Unit 1 maintenance outage (6-weeks), headquarters facilities, staffing and surplus sales
adjustments.
Chairman Roiniotis stated the 2016 Proposed Annual Budget for Platte River Power Authority
has been delivered in accordance with applicable law. He then declared the Second Public
Hearing on the 2016 Proposed Annual Budget to be open and asked if any members of the
public wished to comment on the proposed budget. Hearing none, the Chairman closed the
hearing for the 2016 Proposed Annual Budget.
Directors reiterated the importance of evaluating staffing projections and needs with Platte
River providing that information to the Board in future discussions. Platte River’s staff
consistently evaluates and will periodically update the Board on future staff planning.
Director Coombs moved to approve Resolution No. 15-15: 2016 Annual Budget and
Appropriation Resolution as presented. Director Troxell seconded, and the motion carried 7-0.
(6)
2015 Budget Contingency Appropriation Transfer
(presenter: Dave Smalley)
As of the end of October capital additions were projected to be $100,000 under budget,
however, completion of several projects will require a contingency transfer. Staff requests $2.3
million to cover these capital projects. The major projects are listed within the Board packet and
have previously been discussed with the Board. These projects are either over budget or out of
budget items for 2015. A contingency transfer was not requested previously as capital
expenditures had been below budget, however at this time staff is requesting a transfer based
on the latest estimates.
A director asked for clarification on the item listed in the packet for deeper foundations at a
substation. Staff responded that the water table was higher than projected which required more
substantial foundations to support the equipment.
Page 3 of 7
Page 12
Regular Board Meeting Minutes: December 10, 2015
Director Bergsten moved to approve Resolution No. 16-15: 2015 Budget Contingency
Appropriation Transfer as presented. Director Adams seconded, and the motion carried 7-0.
(7)
2016 Strategic Plan
(presenter: Pete Hoelscher)
Mr. Hoelscher, communications & marketing director, presented the 2016 Strategic Plan
document. Key changes to the document since first presented to the Board at the October
meeting included: improved design and graphics, a 10-year transmission summary table in the
resource management section, updated planning information from Fort Collins and Longmont,
clarification of language related to funding opportunities for 2016 and several minor corrections
found during the final review process.
Director Adams pointed out a correction on page 33 involving the location of the
Loveland/Foothills substation and solar project. Staff thanked the Board for their participation
and feedback provided during the review process. An updated version will be provided to the
Board after corrections are made and an electronic version of the document will be posted on
Platte River’s web site. The Board commended the staff for creating a document with useful
information.
Director Gutierrez moved to approve the 2016 Strategic Plan as presented. Director Coombs
seconded, and the motion carried 7-0.
(8)
Annual Summary for General Manager/General Counsel
(presenter: Jackie Sargent)
Ms. Sargent summarized the annual review process and thanked the Board for their feedback.
Ms. Sargent acknowledged the Board for their help and support as staff addressed the nine
strategic initiatives highlighted in the review summary for the general manager included in the
Board packet. The management team and employees worked to assure that all efforts were
approached in a safe, reliable, environmentally responsible, and cost-effective manner.
Joe Wilson, general counsel, also thanked the Board for their continued support and referred to
the summary provided in the Board packet containing a brief overview of successes and
outlook for the future.
(9)
Executive Session
Director Coombs moved that the Board go into executive session for the purposes of
considering personnel matters related to the annual review of the performance of the general
manager and the general counsel.
The general counsel has advised that an executive session is authorized in this instance
pursuant to Colorado Revised Statutes, Section 24-6-402, subsection (4)(f); provided that, no
formal action will be taken during the executive session.
Director Gutierrez seconded, and the motion carried 7-0.
Page 4 of 7
Page 13
Regular Board Meeting Minutes: December 10, 2015
(10)
Reconvene Regular Session
The Chairman reconvened the Regular Board Meeting. The Board is pleased with the
performance of the general manager and general counsel as well as the entire organization.
Director Horak made a motion to increase the general manager’s salary by four percent.
Director Coombs seconded the motion. Further discussion took place and Director Horak
requested to look at how the four percent increase may be put into deferred compensation if the
employee (general manager) so wishes, making sure the base salary reflects the four percent
number, whether or not treated as deferred compensation, so that the four percent increase is
counted as base salary for market comparisons. The Board also requested more information
regarding a car allowance program for the general manager in lieu of an assigned company
vehicle. Staff was also directed to research and develop an appropriate companywide vehicle
policy. Motion carried 8-0.
Director Horak made a motion to give a three percent one-time payment to the general counsel.
Director Bergsten seconded. Motion carried 8-0. Director Horak further stated that the Board is
open to conducting future market salary surveys for the general counsel position.
(11)
Legal & Governmental Affairs Report
(presenter: Joe Wilson)
Mr. Wilson briefed the Board on the current legal and governmental affairs. The full report is in
the Board packet. It was noted that on December 9, 2015 the FERC issued a deficiency letter
regarding the revised JDA filing and has scheduled a technical conference for Tuesday,
December 15, 2015. General counsel advised the Board that this was a positive sign, and that the
technical conference was likely scheduled due to ex parte restrictions on communications. An
update will be given at the February Board meeting.
A director inquired about the Zayo counsel inadvertently neglecting to calendar depositions,
and if this was a delay tactic. The general counsel responded that any delay would be minimal;
depositions will be scheduled in January and mediation in Spring 2016.
(12)
Operating Report, October and November 2015
(presenter: Jason Frisbie)
Mr. Frisbie, chief operating officer, reviewed the October and November operational budget
variances and noted the full report for October was in the Board packet and the November
report was handed out at the meeting.
As outlined in the report, a few highlights for October and November includes Rawhide Unit 1
scheduled outage, Craig Unit 2 outage, one lost time injury in October, and Platte River
completed the Rawhide outage with only one minor first aide injury. Platte River’s accounts
payable staff took advantage of early payment discounts with vendors and because of early
payments many of the expenses that were realized in October were actually budgeted in
November. Year-to-date fuel costs continue to be under budget. Platte River’s peak demand for
October occurred on October 1st at 436 megawatts, 1 megawatt under forecast, and peak
demand for the month of November was on November 30 at 464 megawatts, 8 megawatts
above forecast. Surplus sales continue to be below budget. Mr. Frisbie finished the report by
commending staff for their hard work and long hours spent on one of the most ambitious
Page 5 of 7
Page 14
Regular Board Meeting Minutes: December 10, 2015
outages for Platte River and having a general manager that has outage experience. The Board
commended the outage results and hard work put forth by staff.
(13)
Financial Report, October and November 2015
(presenter: Dave Smalley)
Mr. Smalley, chief financial & risk officer, highlighted the financial budget variances for October
and November. The full report for October was in the Board packet and November results were
handed out at the meeting.
In October, operating revenues were below budget due to surplus sales and operating expenses
being over budget, resulting in $4.4 million loss - $3.5 million below the budget. Operating
expenses were above budget primarily due to purchased power related to the outage and
transmission outages as well as outage costs and timing.
In November, operating revenues were below budget due to surplus sales, however operating
expenses were under budget, resulting in a $2.2 million loss - $1.3 million better than the
budgeted loss of $3.5 million.
Year-to-date Platte River is at $6.4 million net income, $2.6 million below budget. For 2015, staff
is estimating net income from $5.1 million to $6.5 million based on estimated results for the
month of December. Platte River remains in solid financial position. Staff will provide year end
results and trends at the February Board meeting.
(14)
Management Report
(presenter: Jackie Sargent)
Ms. Sargent referred to the safety, environmental, legal, operational, and financial updates that
were covered in the Board packet. With two more presentations on the agenda she offered to
answer any questions the Board may have, and with none she opened the floor to the first
presentation.
a.
Rawhide Outage Report
(presenter: Andy Cofas)
Andy Cofas, plant manager, gave an overview of the Rawhide scheduled maintenance outage
concluding November 27 with safety statistics, budget highlights, successes for major projects
and concluding with lessons learned to apply towards future maintenance outages. Directors
greatly appreciated their tour while the facility was offline and complimented the staff for their
commitment and planning of the entire project, noting that this reflected back to great
leadership for a well organized and successfully executed outage.
b. Headquarters Campus
(presenter: Karin Hollohan, Jeff Cross, Rob Coker)
Ms. Sargent introduced a new Platte River staff member, Baird Cook, facilities project
coordinator, and CH2M Hill staff members, Robert Coker, senior master planner/project
manager, and Jeff Cross, vice president global account manager, to the Board. Karin Hollohan,
corporate services director, pointed out that this presentation was strictly for informational
purposes only and no decision would be made by the Board at this time. An overview of history
at the current location, a high level summary of the external review and evaluation of the
Page 6 of 7
Page 15
Regular Board Meeting Minutes: December 10, 2015
current headquarters facilities, and four potential options for the Board to consider at a future
meeting were presented. Staff also provided a forecasted rate impact for the various
headquarters campus options. Further discussions will be included, as needed, at the February
and March utility directors meetings and Board meetings.
(15)
Roundtable
Due to time constraints, no Board members shared news.
ADJOURNMENT
With no further business, the meeting adjourned at 12:56 p.m. The next regular Board meeting
is scheduled for Thursday, February 25, 2016, 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
day of
, 2016.
seal of the Platte River Power Authority this
Assistant Secretary
Page 7 of 7
Page 16
Page 17
Memorandum
Date:
February 17, 2016
To:
Board of Directors
From:
Jackie A. Sargent, General Manager/CEO
Shelley K. Nywall, Controller
Subject:
Transfer of 2015 Capital Budget Carryover to 2016 Capital Budget
During 2015, capital expenditures ended the year $4.7 million under budget. This variance was
due to construction schedule changes, contract delays, staff shortages, canceled projects,
favorable pricing, and other projects taking priority (scheduled maintenance outage and the
Rawhide Flats solar project). Resolution No. 15-15 (adopting the 2016 Annual Budget)
authorizes the unexpended balance of funds for 2015 capital additions to be carried over to the
2016 Annual Budget. Staff is requesting a carryover amount of $4,425,830.
The final capital budget for 2016 is as follows.
$42,029,583 Original 2016 Budget
4,425,830 Capital carryover requests
$46,455,413 Final 2016 Budget
A detailed listing of the projects and amounts requiring carryover to 2016 is attached.
Staff will be available to answer any questions you may have.
Attachment
Page 18
Page 19
Platte River Power Authority
2016 Capital Carryover Projects
Project#
Project Description
Power Production
1010
Yampa Capital Projects
1598
Soldier Canyon 10" Line Modifications with New Raw Water Tank
1909
Windy Gap Firming Study
1555
Unit 1 Controls Network Cyber Security and Redundancy Upgrade
1639
Tripper Deck Expansion
1603
Tripper Floor Dust Collector System Modification - Unit 1
1497
Rotary Car Dumper Dust Collection System Upgrade
1492
MOV Replacement - Rawhide 24" Water Pipeline
1587
Inerting Steam Drain Line Addition - Unit 1
Carryover
Amount
$
Total Power Production
Power Delivery
3295
Fiber Optic Route to Estes Park
2229
LaPorte Substation - 230kV Expansion
2153
Boyd 115/230kV Substation Transformer T2 Addition
3272
Digital Cross Connect Equipment Replacement (Comm. Room and DRC)
2228
LaPorte Substation - 115kV Adaptation and Refurbishment
2227
Emergency Storm Structures
2246
Solar Interconnection Transformer - Rawhide
2231
Transmission Line Vault Upgrades - Rogers Road
3274
Fiber Cable Replacement - Estes Park
2254
Breaker Replacement (2062/2066) and Relay Upgrades - Rawhide Substation
2206
Breaker Replacement - Boyd Breaker 2062, 3062, 3166
2177
Crossroads 115/230kV Substation Transformer T2 Addition
3285
Telephone VoIP Switch Replacement
2255
Generation Availability Transformer - Rawhide Substation
2218
Gore Pass-Blue River Additions (Tri-State Joint Facility Project)
2252
Foothills Substation
2247
Breaker Replacement - Richard Lake 562
Total Power Delivery
Corporate Services
2235
Security - Longs Peak Substation
2234
Security - LaPorte Substation
3254
Engineering Document Management Software (EDMS)
2233
Security - Boyd Substation
1564
Conveyor Belt Fall Protection Guard Rails
3271
Corporate Firewall to Support V-LAN Segments
3276
Landscape Improvements - HQ Southeast Corner
3241
HQ Irrigation System Redesign and Construction
3253
Wireless Expansion
1,587,798
542,372
188,870
175,681
89,825
35,484
35,000
28,426
2,872
2,686,328
464,485
323,065
109,427
54,400
51,014
50,000
36,575
29,229
25,571
16,170
15,368
12,084
7,667
5,724
5,500
4,676
1,000
1,211,955
127,274
95,456
91,925
63,637
52,341
36,000
33,550
20,000
7,364
Total Corporate Services
Total Capital Carryover Projects $
527,547
4,425,830
Page 20
Page 21
Memorandum
Date:
February 17, 2016
To:
Board of Directors
From:
Jackie A. Sargent, General Manager/CEO
Joseph B. Wilson, General Counsel
Subject:
General Manager and General Counsel Annual Performance Review
As previously discussed and agreed to by the Board of Directors, the proposed changes to this policy
simply reflect a change in the timing of the annual reviews for the general manager and general
counsel from December of each year to March of the following year. This change provides a more
complete opportunity for both the general manager and general counsel to fully and comprehensively
report on annual accomplishments.
If adopted, the next annual performance reviews would be conducted in March 2017 for calendar year
2016.
Page 22
Page 23
Policy Title: General Manager and General Counsel Annual Performance Review Process Version # 2.0 3.0
Category: Administrative/Board of Directors
Effective date: 10/29/2015 02/25/2016
Post to Intranet: No
Enter date of latest revision
To be posted by responsible division
1-.-i
PLATTE RIVER
~ POWER AUTHORITY
Policy
Policy Title: General Manager and General Counsel
Annual Performance Review Process
Original Approval Date: 3/27/2fil4
Enter date of original policy approval
Enter Name of Polict1
Responsibility: Corporate Services Director
Revision Approval Date: 10/ 29 / 2015 02/25/2016
Enter title of employee administering the policy including revie~
and revision
Authority:
Enter date of most current revision
Review Frequency: As Needed
Board of Directors
\
Select One
Counsel Review: Joe Wilson, General Co~~~ Review Date: No Date
Enter General Counsel's name and obtain initials on printed
Enter date NEXT review is required
....
Route to General Counsel for review of subsequent procedures and/or processes: Yes
Associated Procedures: Total Compensation Policy; Employee Handbook
Enter titles of procedures associated to policy
''.. I.' I
AS WITNESS, I have executed my name as Assistant Secretary and
have affixed the corporate seal of the Platte River Power Authority
this__a<i day of
2015.
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following the decimal is for minor changes or updates. For example: 1.01 (Format changes and other insignificant changes should not be
.
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:
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Autho1
Action
Version
Date
1.0
3/27/2014
2.0
10/29/2015
3.0
02/25/2016 Revised by Board of Directors/
Approved by Board of Directors/
Resolution No. 6-14
Revised by Board of Directors/
Resolution No. 12-15
Resoluction No. __-16
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Karin Hollohan
New
Karin Hollohan
Revised
Karin Hollohan
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Page 1 of3
ELV7/2015
Page 24
Policy Title: General Manager and General Counsel Annual Performance Review Process Version # 2.0 3.0
Category: Administrative/Board of Directors
Effective date: 10/29/2015 02/25/2016
Enter date of latest revision
Post to Intranet: No
To be posted by responsible division
Purpose:
The purpose of this policy is to establish the process by which the Board of Directors provides performance
feedback to the General Manager and General Counsel (“appointees”), as direct reports to the Board. The intent
of such feedback is to help ensure that both appointees are aware of the Board’s expectations, and to provide the
support needed for both to be successful in their jobs.
Implementing Parties and Assigned Responsibilities:
The Board of Directors is responsible for carrying out this policy, and may delegate actions under this
policy through the General Manager to internal Platte River staff.
The Board Chairman and Vice Chairman, in conjunction with the General Manager, are responsible for
identifying the appropriate internal support staff to assist with the process, for working with all Board members
to determine the content and audience for any performance feedback survey, and to direct staff regarding any
desired market survey to help determine compensation.
Associated Items:
Employee Total Compensation Policy originally adopted by the Board on March 28, 2013.
Platte River’s Employee Handbook
Policy:
It is the Board’s policy to provide regular feedback on performance to both the General Manager and General
Counsel, and to do so in a way that incorporates input from a variety of sources while focusing on Board
expectations and strategies. An annual review with each appointee will be held in December March of each
year. The focus of the review should be two-fold: First, accomplishments for the previous year should be
reviewed individually with each appointee, and feedback provided regarding the quality, timeliness, and
acceptability of their results;. Second, a discussion should take place regarding the Board’s expectations for
the upcoming year.
In preparation for that discussion, the Board will solicit input from all Board members and designated direct
reports. The Board may further consider input from selected internal Platte River employees with whom
either appointee may work. Such input will be solicited in November early March of each year, and reported
to the Board prior to the December March meeting.
If any Board member requests changes to the performance feedback survey, such discussion should take place
by the full Board. Any changes should be adopted prior to November, ideally in the first quarter of the year so
the appointees know the Board’s expectations. Staff will provide a copy of the prior year’s performance
feedback survey to the Board Chairman in February. If any Board member wishes to make changes to the
performance feedback survey, such proposal should be first brought to the full Board for discussion and
approval. Since the content of the performance feedback survey incorporates Board expectations, any future
changes to that survey should be made as early in the year as feasible in order to best provide guidance to the
Board appointees.
The Board may provide performance feedback to each appointee using the feedback surveys, the appointee’s
annual reports, direct Board discussion or other means that appropriately reflect job performance. Copies of all
written feedback will be provided to each direct report. Each appointee shall prepare a written memo style
annual report including a self-evaluation prior to any performance discussions with the Board. In all situations,
the Board is committed to following Platte River’s equal opportunity policy and will not discuss, allude to, or be
influenced by non job related factors.
Page 2 of 3
ELV 7/2015
Page 25
Policy Title: General Manager and General Counsel Annual Performance Review Process Version # 2.0 3.0
Category: Administrative/Board of Directors
Effective date: 10/29/2015 02/25/2016
Enter date of latest revision
Post to Intranet: No
To be posted by responsible division
As part of the annual performance review process, the Board will review the salaries of the appointees and
shall determine any applicable adjustments. This review should be conducted in a manner consistent with the
Board’s Employee Total Compensation Policy regarding market-based compensation practices and
methodology. The Board may direct staff to either use the existing internal market survey process or may
choose to use an external third party vendor to evaluate the market practices and current pay levels for the
positions held by each appointee. In either case, the market survey should reflect a broad cross section of
similarly situated generation and transmission utilities. Any changes in pay resulting from the survey should be
communicated to each appointee during the December March Board meeting.
Routing Instructions:
1.
2.
3.
cc:
Obtain Signatures (in order): Legal, Division Director, General Manager
Publish to the intranet, if appropriate
Send signed original to Central Files in Records (both hard copy & Word document)
Records – Original
Page 3 of 3
ELV 7/2015
Page 26
Page 27
Policy Title: General Manager and General Counsel Annual Performance Review Process Version # 3.0
Category: Administrative/Board of Directors
Effective date: 2/25/2016
Enter date of latest revision
Post to Intranet: No
To be posted by responsible division
Policy
Policy Title: General Manager and General Counsel
Annual Performance Review Process
Enter Name of Policy
Responsibility: Corporate Services Director
35T
Enter date of most current revision
Review Frequency: As Needed
Board of Directors
Counsel Review: Joe Wilson, General Counsel
Enter date of original policy approval
Revision Approval Date: 2/25/2016
Enter title of employee administering the policy including review
and revision
Authority:
Original Approval Date: 3/27/2014
Select One
Enter General Counsel's name and obtain initials on printed form
Review Date: No Date
Enter date NEXT review is required
Route to General Counsel for review of subsequent procedures and/or processes: Yes
Associated Procedures: Total Compensation Policy; Employee Handbook
Enter titles of procedures associated to policy
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
Version History:
Enter version history using the following standard convention: the number preceding the decimal is for major versions while the number
following the decimal is for minor changes or updates. For example: 1.01 (Format changes and other insignificant changes should not be
listed). Please do not include draft or works in progress in version history. Every version requires approval by the General Manager.
Change Tracking
Version
Date
Action
Author
(new, review,
revision)
Approved by Board of Directors/
1.0
3/27/2014
Karin Hollohan
New
Resolution No. 6-14
Revised by Board of Directors/
2.0
10/29/2015
Karin Hollohan
Revised
Resolution No. 12-15
Revised by Board of Directors/
3.0
02/25/2016
Karin Hollohan
Revised
Resolution No. 1-16
Page 1 of 3
ELV 7/2015
Page 28
Policy Title: General Manager and General Counsel Annual Performance Review Process Version # 3.0
Category: Administrative/Board of Directors
Effective date: 2/25/2016
Enter date of latest revision
Post to Intranet: No
To be posted by responsible division
Purpose:
The purpose of this policy is to establish the process by which the Board of Directors provides performance
feedback to the General Manager and General Counsel (“appointees”), as direct reports to the Board. The intent
of such feedback is to help ensure that both appointees are aware of the Board’s expectations, and to provide the
support needed for both to be successful in their jobs.
Implementing Parties and Assigned Responsibilities:
The Board of Directors is responsible for carrying out this policy, and may delegate actions under this policy
through the General Manager to internal Platte River staff.
The Board Chairman and Vice Chairman, in conjunction with the General Manager, are responsible for
identifying the appropriate internal support staff to assist with the process, for working with all Board members
to determine the content and audience for any performance feedback survey, and to direct staff regarding any
desired market survey to help determine compensation.
Associated Items:
Employee Total Compensation Policy originally adopted by the Board on March 28, 2013.
Platte River’s Employee Handbook
Policy:
It is the Board’s policy to provide regular feedback on performance to both the General Manager and General
Counsel, and to do so in a way that incorporates input from a variety of sources while focusing on Board
expectations and strategies. An annual review with each appointee will be held in March of each year. The focus
of the review should be two-fold: First, accomplishments for the previous year should be reviewed individually
with each appointee, and feedback provided regarding the quality, timeliness, and acceptability of their results;
Second, a discussion should take place regarding the Board’s expectations for the upcoming year.
In preparation for that discussion, the Board will solicit input from all Board members and designated direct
reports. The Board may further consider input from selected internal Platte River employees with whom either
appointee may work. Such input will be solicited in early March of each year, and reported to the Board prior to
the March meeting.
If any Board member wishes to make changes to the performance feedback survey, such proposal should be first
brought to the full Board for discussion and approval. Since the content of the performance feedback survey
incorporates Board expectations, any future changes to that survey should be made as early in the year as feasible
in order to best provide guidance to the Board appointees.
The Board may provide performance feedback to each appointee using the feedback surveys, the appointee’s
annual reports, direct Board discussion or other means that appropriately reflect job performance. Copies of all
written feedback will be provided to each direct report. Each appointee shall prepare a written memo style annual
report including a self-evaluation prior to any performance discussions with the Board. In all situations, the
Board is committed to following Platte River’s equal opportunity policy and will not discuss, allude to, or be
influenced by non job related factors.
As part of the annual performance review process, the Board will review the salaries of the appointees and shall
determine any applicable adjustments. This review should be conducted in a manner consistent with the Board’s
Page 2 of 3
ELV 7/2015
Page 29
Policy Title: General Manager and General Counsel Annual Performance Review Process Version # 3.0
Category: Administrative/Board of Directors
Effective date: 2/25/2016
Enter date of latest revision
Post to Intranet: No
To be posted by responsible division
Employee Total Compensation Policy regarding market-based compensation practices and methodology. The
Board may direct staff to either use the existing internal market survey process or may choose to use an external
third party vendor to evaluate the market practices and current pay levels for the positions held by each
appointee. In either case, the market survey should reflect a broad cross section of similarly situated generation
and transmission utilities. Any changes in pay resulting from the survey should be communicated to each
appointee during the March Board meeting.
Routing Instructions:
1.
2.
3.
cc:
Obtain Signatures (in order): Legal, Division Director, General Manager
Publish to the intranet, if appropriate
Send signed original to Central Files in Records (both hard copy & Word document)
Records – Original
Page 3 of 3
ELV 7/2015
Page 30
Page 31
RESOLUTION NO. __-16
WHEREAS, through Resolution No. 6-14 the Board adopted a General Manager and
General Counsel Annual Performance Review Process Policy, to which modifications were
made through Resolution No. 12-15; and
WHEREAS, based on experience with the annual review process the suggestion has
been made by Board members that an annual performance review in March – rather than
December - may allow a better assessment of the prior year achievements; and
WHEREAS, to effect this change in the review cycle the existing policy must be
modified.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of Platte River Power
Authority that the General Manager and General Counsel Annual Performance Review Process,
as attached to this Resolution, is hereby modified and adopted.
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. __-15: Compensation Policy Resolution
Page 1 of 1
Page 32
Page 33
Memorandum
Date:
February 17, 2016
To:
Board of Directors
From:
Jackie A. Sargent, General Manager/CEO
Joseph B. Wilson, General Counsel
Subject:
Incorporation into Record of Resolution No, 14-15
Colorado law, CRS § 24-6-402(2)(c), specifically requires that the place for the posting of meeting
notices be established each year during the first meeting of the governing body. It has been the
practice of the Platte River Board of Directors to approve the Regular Meeting Schedule for the
upcoming year and the place for the posting of notices at the last meeting of the then-current year and
to include the following provision in such Resolution (see e.g., Resolution No. 14-15, approved by the
Board on December 10, 2015):
For purposes of CRS § 24-6-402(2)(c), this action shall be deemed to have occurred
at the first Regular Meeting of the Board of Directors in calendar year 2016 and shall
be incorporated into the records of that meeting.
The purpose of this Consent Agenda item is simply to comply with the language of the above-quoted
Resolution by incorporating the Regular Meeting Schedule of the Board of Directors for 2016 and the
location for the posting of notices of meetings into the record of the first meeting of 2016.
Page 34
Page 35
No materials at this time.
Page 36
Page 37
There are no materials for this section.
Page 38
Page 39
Memorandum
Date:
February 17, 2016
To:
Board of Directors
From:
Jackie A. Sargent, General Manager/CEO
Joseph B. Wilson, General Counsel
Subject:
Platte River Power Authority Annual Meeting
Item 4 on the Agenda is the Annual Meeting of Platte River Power Authority. Sections 2.3.7 and 2.4.1 of
the ORGANIC CONTRACT ESTABLISHING PLATTE RIVER require that an Annual Meeting of the Board of
Directors be held within the first 120 days in each year to elect officers, to pass on reports for the
preceding fiscal year, and to transact such other business as may come before the meeting. The first
order of business under Agenda Item 4 is the election of officers to serve until the next Annual Meeting.
For ease of reference, the current officers are listed:
2015 Platte River Officers
Elected Officers:
Tom Roiniotis, Chairman
Bill Pinkham, Vice Chairman
Cecil Gutierrez, Secretary
David Smalley, Treasurer
Jackie A. Sargent, General Manager
Authorized Assistant Officers:
Angela Walsh; Joe Wilson, Assistant Secretaries
Management suggests that Joe Wilson and Angela Walsh be re-appointed as Assistant Secretaries.
Officers are appointed through resolution and the Board Chair will open the floor for nominations.
The second order of business is the appointment of Directors and members of management to serve
on Platte River’s Retirement Committee. For ease of reference, the current Directors and management
members are listed below. No changes are proposed for the 2016 management members.
2015 Retirement Committee Members
Management Members:
Director Members:
Bill Pinkham
Dennis Coombs
Gerry Horak
Steve Adams
Jackie A. Sargent
David Smalley
Again, the Retirement Committee members are appointed by resolution and the Board Chair will
entertain nominations.
The last order of business under Agenda Item 4 is the “2015 Operations and Financial Review.”
Page 40
Page 41
RESOLUTION NO. __- 16
WHEREAS, Section 2.4.1 of the AMENDED AND RESTATED ORGANIC CONTRACT
ESTABLISHING PLATTE RIVER POWER AUTHORITY requires that the officers of Platte River Power
Authority (Platte River) be elected annually by the Board of Directors at the Annual Meeting.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of Platte River that:
(1)
, be, and hereby is, elected Chairman of the Platte River Power
Authority;
(2)
be, and hereby is, elected Vice Chairman of the Platte River Power
Authority;
(3) David Smalley be, and hereby is, elected Treasurer of the Platte River Power
Authority; and
(4) ______________ be, and hereby is, elected Secretary of the Platte River Power
Authority, with Angela Walsh and Joe Wilson hereby appointed as Assistant
Secretaries; and
(5) Jackie A. Sargent be, and hereby is, elected General Manager and Chief Executive
Officer of the Platte River Power Authority.
The terms of all officers elected and appointed to office hereby shall commence
immediately upon passage of this Resolution, and shall remain in force until the next Annual
Meeting of the Board of Directors.
The Assistant Secretaries are delegated the authority to authenticate the documents 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
Page 42
Page 43
RESOLUTION NO. __ -16
WHEREAS, the Board of Directors of Platte River has established a Retirement
Committee under the Platte River Defined Benefit (DB) Plan, consisting of four (4) Directors and
two (2) members of management to administer the Platte River Defined Benefit Plan; and
WHEREAS, the Director members of the Retirement Committee are appointed each
year at the Annual Meeting.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of Platte River that
the following Directors are hereby appointed to serve on the Retirement Committee:
,
,
,
.
AND IT IS ACKNOWLEDGED by the Board of Directors that the following members of
management have been selected to serve on the Retirement Committee until the next Annual
Meeting:
Jackie A. Sargent
David Smalley
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
Page 44
Page 45
2015 Operating Report – Annual Review
EXECUTIVE SUMMARY
2015 was a very productive and challenging year for Platte River Operations. With the addition of 60
megawatts of new wind, two very ambitious major outages (Rawhide Unit 1 and Craig Station Unit 2),
and a continued soft surplus sales market, staff was challenged to minimize costs, increase productivity
and seek out new market sales opportunities.
Municipal demand was slightly below budget for the year while energy usage came in at budget for
2015. Baseload generation was below budget primarily due to the Craig Unit 2 and Rawhide Unit 1
extended planned outages. The soft surplus sales market also contributed to reduced output on the
units because, at times, market prices fell below unit operating costs. We experienced a significant
decline in energy market pricing and that impact was felt throughout the year, adversely affecting
surplus sales. Despite the extended major outages at both Rawhide and Craig, dispatch costs came in
below budget for the year due to favorable Trapper coal pricing at the Craig Station and significantly
below budget non-outage O&M costs at both Rawhide and the Craig Station. Surplus sales volume and
pricing were significantly below budget due to historically low natural gas prices, extended planned
outages at Rawhide and the Craig Station, and numerous shaft sharing obligations throughout the year.
Below is an operational summary for the month of December and the year. Additional details regarding
each category are provided in the sections that follow.
Category
December Variance
YTD Variance
(2.8%)

(1.1%)

0.1%

(0.0%)

Baseload Generation
(6.9%)

(5.1%)

Wind Generation
(2.0%)

(7.8%)

Surplus Sales Volume
(32.3%)

(16.5%)

Surplus Sales Price
(35.9%)

(21.0%)

9.3%

2.6%

Municipal Demand
Municipal Energy
Dispatch Cost
Variance Key: Favorable:  >2% | Near budget:  +/- 2% | Unfavorable:  <-2%
2015 Operating Report – Annual Review
1
Page 46
OPERATIONAL OVERVIEW
Safety. There was one lost time accident reported in 2015. The injury occurred in August and was a
result of a severe strain to a joint that ultimately required surgery in October.
2015 Goal
December Actual

0
0
YTD Total

1

System Disturbances. There was one loss of city load for the year. The event occurred in April 2015
while Platte River technicians were performing preventative maintenance for the City of Longmont at
Rogers Road Substation. A failure to isolate all equipment resulted in a blackout, dropping service to
the Longmont customers served by this substation for approximately 20 minutes.
2015 Goal
December Actual

0
0
YTD Total

1

Peak Day Obligation.
December: Peak demand for the month was 487 megawatts, which occurred on Tuesday, December
15, 2015, at 18:00 hours and was 14 megawatts below budget. Platte River’s total obligations at the
time of the peak were 571 megawatts.
2015: Peak demand for the year was 639 megawatts, which occurred on Monday, July 27, 2015, at
17:00 hours and was 7 megawatts below budget. Platte River’s total obligations at the time of the peak
were 661 megawatts.
2015 Peak Day - July 27, 2015
Total Obligation
661
700
650
Forecast Demand
646
600
550
Municipal Obligation
639
500
450
MW
400
350
300
250
200
150
100
50
0
1
2
3
4
5
6
7
Hydro
8
9
Wind
2015 Operating Report – Annual Review
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hour
Rawhide
Craig
CTs
Purchases
2
Page 47
POWER GENERATION
Rawhide Performance. For 2015 the equivalent availability and net capacity factors were slightly
below budget primarily due to the extended planned outage of Unit 1 and required unit tuning and
testing after the outage.
Rawhide Equivalent Availiability
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%
December
December
YTD
YTD
Rawhide emissions levels were well below allowable limits for the year:
SO2 (lbs/MBtu)
Limit
Hg (lbs/GWh)
NOx (lbs/MBtu)
Actual
Limit
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
December
YTD
2015 Operating Report – Annual Review
0.000
December
YTD
December
YTD
3
Page 48
Craig Station Performance. For 2015 equivalent availability factor was slightly below budget primarily
due to the extended planned outage of Unit 2. Net capacity factor was below budget for December and
the year due to ongoing soft market pricing.
Craig Equivalent Availability
Budget
Craig Station Net Capacity Factor
Actual
Budget
100%
100%
95%
95%
90%
90%
85%
85%
80%
80%
75%
75%
70%
70%
65%
65%
60%
60%
55%
55%
50%
Actual
50%
December
YTD
December
YTD
Peaking. CT generation was above budget in 2015 due to Rawhide CT F supporting the Rawhide Unit
1 planned outage and summer peaking sales. Overall pricing for CT generation was below budget due
to low natural gas pricing throughout the year.
MWhs
450
CT Generation
Budget
Actual
$/MBtu
60,000
$5.00
Natural Gas Pricing
Budget
Actual
$4.50
400
50,000
350
300
40,000
$4.00
$3.50
$3.00
250
30,000
200
$2.50
$2.00
150
20,000
100
10,000
50
$1.50
$1.00
$0.50
0
0
December
YTD
2015 Operating Report – Annual Review
$December
YTD
4
Page 49
Renewable Supply. Hydro allocations were received as budgeted. Wind generation continued its trend
of below budget generation throughout the year due to lower than anticipated wind levels.
MWh (000's)
MWh (000's)
Hydro Generation
Wind Generation
Budget
Actual
700
35
60
600
30
300
50
500
25
250
40
400
20
200
30
300
15
150
20
200
10
100
10
100
5
50
0
0
70
Budget
Actual
0
December
YTD
350
0
December
YTD
SALES AND PURCHASES
Surplus Sales. Surplus sales volume and pricing continued to decline throughout 2015 due to a
depressed market and excess capacity within the western interconnect. Demand in December was
reduced even lower due to higher than expected wind output throughout the region along with low
natural gas prices.
MWh (000's)
Sales Volume
Budget
$/MWh
Budget
Actual
100
900
$40
90
800
$35
80
700
$30
70
600
60
Average Sales Price
Actual
$25
500
$20
50
400
40
300
30
$15
$10
20
200
10
100
$5
0
$0
0
December
YTD
2015 Operating Report – Annual Review
December
YTD
5
Page 50
Purchases. The volume of purchased power in 2015 was significantly above budget due to planned
outage extensions at both Rawhide and the Craig Station. Purchase power pricing, however, was
significantly below budget, resulting in favorable purchase power costs for the year.
Energy Purchases
MWhs
Budget
1,200
Actual
1,000
$/MWh
250,000
$60
200,000
$50
800
Average Purchase Price
Budget
Actual
$40
150,000
600
$30
100,000
400
$20
50,000
200
0
0
December
$10
$0
YTD
December
YTD
DISPATCH COST
Dispatch Cost. Rawhide’s December costs were slightly above budget due to ongoing O&M costs
associated with unit tuning and testing after the planned outage. As mentioned previously, purchased
power prices continued to be lower than budgeted. Craig costs for the month were significantly below
budget due to an annual coal price adjustment from the Trapper Mine, which contributed to average
dispatch costs being well below budget for December.
December Dispatch Cost by Resource
Budget
$600
Blended Actual
Resource
Average
Actual
$60
$50
$/MWh
$40
$30
$20
$10
$0
Rawhide
Craig
LAP
CRSP
Purchases
Wind
CTs
$29.64 Blended Budget | $26.89 Blended Actual
2015 Operating Report – Annual Review
6
Page 51
Non-outage O&M costs at both Rawhide and the Craig Station were significantly below budget during
the year. Fuel costs at Craig Station, specifically the Trapper Mine, were also significantly below budget
for 2015. These positive variances more than offset the additional expenses incurred during the
extended planned outages at both Rawhide and the Craig Station. Purchased power prices ended the
year well below budget due to the ongoing soft sales market. Low natural gas prices contributed to CT
costs being significantly below budget for the year. In a year with two major planned outages, total
dispatch costs for 2015 still came in below budget.
YTD Dispatch Cost by Resource
Budget
$140
Actual
Resource
Average
Blended Actual
$120
$/MWh
$100
$80
$60
$40
$20
$0
Rawhide
Craig
LAP
CRSP
Purchases
Wind
CTs
$34.12 Blended Budget | $33.22 Blended Actual
POWER DELIVERY
Major System Operations Projects Benefitting the Municipalities:
Location
Estimated
Finish Date
Percent
Complete
Loveland
01/2016
90%
Crossroads city transformer addition
Fort Collins
05/2016
85%
Laporte substation 230kv expansion
Fort Collins
05/2016
80%
Laporte substation 115kv adaptations and refurbishments
Estes Park
07/2016
90%
Fiber loop replacement
Rawhide
08/2016
38%
Rawhide solar project
Estes Park
11/2015
100%
New SCADA system
Fort Collins
07/2015
100%
Rawhide – Laporte OPGW
Fort Collins
07/2015
100%
Rawhide – I-25 OPGW
Fort Collins
06/2015
100%
Linden 115kV breaker addition
Rawhide
05/2015
100%
Rawhide 230kV breaker replacements
2015 Operating Report – Annual Review
Description
7
Page 52
EVENTS OF SIGNIFICANCE
Power Production:
•
Rawhide Unit 1 set a record consecutive day run at 393 days. The previous record was 292
days.
•
Successfully completed the planned major maintenance outage of Rawhide Unit 1.
•
Installed the Emerson Ovation DCS process control computer system with high performance
graphics and analytics.
•
Rolled out new Rawhide controls network to improve cyber security and reliability.
•
Completed the tripper deck dust collection project.
•
Completed the variable frequency drive project at Rawhide pump station to increase energy
efficiency while improving water utilization.
•
All of the CT units performed well in 2015. The EA units had a starting reliability of 93.3% and
CT-F was successfully run during the Unit 1 outage for over 100 hours, which is one of the
longer run times on record.
•
The Rawhide coal pile level was successfully brought back up to target inventory levels.
•
An extension to the Rawhide coal contract was executed in November 2015, which will secure
all of Rawhide’s coal needs through 2022.
Power Delivery:
•
Reorganized the Power Delivery division to better align employee strengths with business
needs.
•
Re-filed a new version of Joint Dispatch (JDA) with FERC to create a long term market
opportunity for our excess generation.
•
Experienced a soft energy market throughout the year, resulting in extremely low gas and
surplus sales pricing.
•
Municipal demand and energy were close to budget.
•
Entered into a purchase power agreement (PPA) for 30 megawatts of solar at Rawhide Flats
Solar Facility.
•
First full year of Spring Canyon wind (60 MW).
•
Successfully completed a WECC/NERC reliable audit and NATF Peer Review.
2015 Operating Report – Annual Review
8
Page 53
PLATTE RIVER POWER AUTHORITY – Financial Highlights Year-to-Date December 2015
Platte River’s financial position remains stable although unfavorable results were reported compared to budget. Net
income of $6.8 million exceeded the strategic financial plan target; however it was $3.1 million below budget. Revenues
were the main driver of the overall lower net income primarily due to the surplus sales market conditions, as overall
expenses have been under budget.
Key Financial Res ults
($ Millio ns)
Net Inc o m e
December
Budget Ac tual
$
$
1.81x
Debt Co verage
To tal Revenues
1.0
0.4

$ (0.6)
(60.0%)
1.64x

(.17x)
(9.4%)
$ (1.6)
(8.9%)
$211.7
0.7%
176.6
$ 17.9
$ 16.3

14.4
14.5

0.1
(1.7)
Municipal Sales Revenue
Year to Date
Budget
Actual
Favo rable
(Unfavo rable)
$
9.9
1.60x
$
6.8
(3.1)
(31.3%)

(.09x)
$201.1

$ (10.6)
(5.6%)
0 0%
(5.0%)
$ 211.7
176.0

(0.6)
(0.3%)
176.6
(10.0)
1.51x
 $
3.5
1.8

(48.6%)
35.1
25.1

$ 14.0
$ 12.5

$ 1.5
10.7%
$165.8
$157.3

Purchased Power
3.1
2.8

0.3
9.7%
33.3
32.5
Fuel Expense
4.8
2.9

1.9
39.6%
51.1
Operations and Maintenance
5.0
5.5

(0.5)
(10.0%)
65.1
Administrative and General
1.1
1.3

(0.2)
(18.2%)
4.4

35.3%
Surplus Sales and Other Revenue
To tal Operating Expens es
Capital Additio ns
$
6.8
$
$ 2.4
Annual
Budget
Favo rable
(Unfavo rable)
$
9.9
1.60x
(28.5%)
35.1
8.5
5.1%
$ 165.8

0.8
2.4%
33.3
46.4

4.7
9.2%
51.1
62.7

2.4
3.7%
65.1
16.3
15.7

$ 37.8
$ 33.1

$
$
0.6
3.7%
16.3
4.7
12.4%
$ 37.8
Below is a summary of key financial drivers year to date:

Below-Budget Surplus Sales Revenues: As a result of lower generation due to a soft surplus sales market, mild
weather, and maintenance issues of the Craig units, surplus sales revenues were $9.9 million below budget.
The Craig units and Rawhide Unit 1 produced 125 GWh and 29 GWh less energy, respectively. This contributed
approximately $3.8 million to the lower revenues, based on current surplus sales prices.

Below-Budget Operating Expenses: Overall operating expenses were 5.1% below budget mainly due to the
items listed below.
o Purchased power expenses were below budget due to energy provided to Tri-State under the Forced
Outage Assistance Agreement, unfavorable wind conditions resulting in lower generation and fewer
reserve purchases. These below-budget expenses were partially offset by above-budget supplemental
purchases, which were required mainly due to extending the scheduled maintenance outages.
Purchases were also made to take advantage of the favorable pricing, which helped maintain contract
sales.
o Fuel expenses were below budget as a result of below-budget generation and lower coal prices. A soft
surplus sales market, mild weather, the extended scheduled outage of Craig Unit 2, and maintenance
issues impacted generation of the Craig units. Lower coal prices from the Trapper and Colowyo mines
also contributed to lower fuel expenses. In addition, Rawhide Unit 1 fuel expenses were below budget
as the final coal price determined under the contract and the fuel surcharge were less than originally
budgeted. The ten-day extension of the scheduled outage also impacted Rawhide Unit 1’s generation.
Natural gas expense partially offsets the below-budget coal expense. Natural gas is above budget due
to operating the combustion turbines to meet load requirements and surplus sales.
o Operations and maintenance expenses were below budget mainly due to the below-budget Yampa
operating expenses, lower personnel expenses due to vacant positions, and lower production and
transmission maintenance expenses.
o Administrative and general expenses were below budget mainly due to personnel expenses from vacant
positions, planning expenses, professional services, and computer expenses.

Below-Budget Capital Additions: Capital additions were below budget $4.4 million due to scheduling changes,
contractor delays, and staffing constraints. As a result $4.4 million of this variance will be requested to be
carried over to the 2016 budget. See page 9 for details of significant projects.
Page 1 of 13
Page 54
PLATTE RIVER POWER AUTHORITY
SCHEDULE OF REVENUES AND EXPENDITURES, BUDGET TO ACTUAL
December 2015
Non-GAAP Budgetary Basis (In Thousands)
Month of December
Budget
Actual
Favorable
(Unfavorable)
REVENUES
ELECTRIC OPERATING REVENUES
Municipal sales
$
Short-term surplus sales and wheeling
Total operating revenues
14,404
$
14,503
$
99
3,408
1,667
(1,741)
17,812
16,170
(1,642)
OTHER REVENUES
Interest income (1)
62
74
12
Other income
19
54
35
Total other revenues
81
128
47
Total Revenues
$
17,893
$
16,298
$
$
3,056
$
2,775
$
(1,595)
EXPENDITURES
OPERATING EXPENSES
Purchased power
281
Fuel expense
4,793
2,938
Production expenses
3,917
4,214
Transmission expenses
1,056
1,252
(196)
Administrative and general
1,148
1,355
(207)
13,970
12,534
Total operating expenses
1,855
(297)
1,436
DEBT EXPENSE
Interest expense
779
779
-
Principal
1,385
1,385
-
Total debt expense
2,164
2,164
-
Production
2,581
2,608
Transmission
2,992
1,082
1,910
General
1,212
738
474
Total capital additions
6,785
4,428
2,357
CAPITAL ADDITIONS
(27)
Total Expenditures
$
22,919
$
19,126
$
3,793
Revenues Less Expenditures
$
(5,026)
$
(2,828)
$
2,198
(1) Excludes unrealized investment gains and losses.
Page 2 of 13
Page 55
PLATTE RIVER POWER AUTHORITY
SCHEDULE OF REVENUES AND EXPENDITURES, BUDGET TO ACTUAL
December 2015 - YEAR TO DATE
Non-GAAP Budgetary Basis (In Thousands)
December Year to Date
Budget
Actual
Favorable
(Unfavorable)
Annual
Budget
REVENUES
ELECTRIC OPERATING REVENUES
Municipal sales
$
Contract surplus sales
Short-term surplus sales and wheeling
Total operating revenues
176,586
$
175,998
$
(588)
$
176,586
1,219
1,219
-
1,219
32,380
22,216
(10,164)
32,380
210,185
199,433
(10,752)
210,185
OTHER REVENUES
Interest income (1)
713
772
59
713
Other income
788
900
112
788
1,501
1,672
171
1,501
Total other revenues
Total Revenues
$
211,686
$
201,105
$
$
33,305
$
32,548
$
(10,581)
$
211,686
EXPENDITURES
OPERATING EXPENSES
Purchased power
757
$
33,305
Fuel expense
51,111
46,446
4,665
51,111
Production expenses
51,800
49,959
1,841
51,800
Transmission expenses
13,264
12,633
631
13,264
Administrative and general
16,280
15,723
557
16,280
165,760
157,309
8,451
165,760
Total operating expenses
DEBT EXPENSE
Interest expense
9,787
9,787
-
9,787
Principal
18,850
18,850
-
18,850
Total debt expense
28,637
28,637
-
28,637
25,015
CAPITAL ADDITIONS
Production
25,015
22,896
2,119
Transmission
9,027
7,519
1,508
9,027
General
3,759
2,715
1,044
3,759
37,801
33,130
4,671
37,801
Total capital additions
Total Expenditure Budget
$
Contingency Reserved to Board
232,198
$
-
219,076
$
-
13,122
$
-
232,198
13,360
Total Expenditures
$
232,198
$
219,076
$
13,122
$
245,558
Revenues Less Expenditures
$
(20,512)
$
(17,971)
$
2,541
$
(33,872)
(1) Excludes unrealized investment gains and losses.
Page 3 of 13
Page 56
PLATTE RIVER POWER AUTHORITY
STATEMENTS OF NET POSITION
Unaudited (In Thousands)
December 31
2015
2014
ASSETS
Utility Plant, at original cost
Land and land rights
Plant and equipment in service
Less - Accumulated depreciation and amortization
$
Construction work in progress
Total utility plant
14,515
1,275,987
(759,951)
530,551
43,902
574,453
$
14,515
1,270,710
(733,588)
551,637
19,603
571,240
Special Funds and Investments
Restricted funds and investments
Dedicated funds and investments
Total special funds and investments
22,201
57,766
79,967
25,425
69,660
95,085
10,126
20,711
14,503
7,501
13,590
12,362
1,364
80,157
24,234
20,238
14,230
7,260
7,612
12,278
1,346
87,198
2,437
1,355
3,792
738,369
3,054
1,511
4,565
758,088
1,033
5,141
6,174
1,908
1,908
183,559
3,229
6,693
9,682
203,163
201,572
6,292
9,372
217,236
16,615
3,063
19,297
780
1,343
41,098
244,261
21,980
2,775
11,686
867
1,764
39,072
256,308
1,006
613
1,619
8,780
8,780
366,412
21,421
110,830
498,663
339,567
24,559
130,782
494,908
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
Non-Current Assets
Regulatory assets
Other long-term assets
Total non-current assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on debt refundings
Pension deferrals
Total deferred outflows of resources
LIABILITIES
Non-Current Liabilities
Long-term debt, net
Capitalized lease obligation
Net pension liability
Other liabilities and credits
Total non-current 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 liabilities and credits
Pension deferrals
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for debt related purposes
Unrestricted
Total net position
$
$
Page 4 of 13
Page 57
PLATTE RIVER POWER AUTHORITY
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
Unaudited (In Thousands)
Twelve Months Ended
December 31
2014
2015
Month of
December
OPERATING REVENUES
Sales to municipalities
Sales for resale and other
$
Total operating revenues
14,503
1,667
$
175,998
23,435
$
169,773
30,094
16,170
199,433
199,867
2,775
2,938
5,608
1,439
2,298
32,548
46,446
62,854
15,906
26,987
26,904
49,975
55,337
14,395
28,374
15,058
184,741
174,985
1,112
14,692
24,882
OPERATING EXPENSES
Purchased power
Fuel
Operations and maintenance
Administrative and general
Depreciation
Total operating expenses
Operating income
NONOPERATING REVENUES AND EXPENSES
Interest income
Other income
Interest expense
Allowance for funds used during construction
Amortization of bond financing costs
Net (decrease)/increase in fair value of investments
63
54
(779)
29
(87)
745
900
(9,787)
349
(112)
641
1,368
(10,788)
97
367
39
Total nonoperating revenues and expenses
(720)
(7,905)
(8,276)
392
6,787
16,606
INCOME BEFORE CONTRIBUTIONS
-
Contribution of assets to municipalities
CHANGE IN NET POSITION
392
NET POSITION AT BEGINNING OF PERIOD
NET POSITION AT BEGINNING OF PERIOD, ADJUSTED
$
498,663
(155)
6,632
501,148
(2,877)
498,271
Adjustment for change in accouning principle
NET POSITION AT END OF PERIOD
(155)
16,451
494,908
(2,877)
492,031
$
498,663
478,457
478,457
$
494,908
Page 5 of 13
Page 58
PLATTE RIVER POWER AUTHORITY
STATEMENTS OF CASH FLOWS
Unaudited (In Thousands)
Twelve Months Ended
December 31
2014
2015
Month of
December
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments for operating goods and services
Payments for employee services
$
Net cash (used in)/provided by operating activities
12,216
(17,390)
(3,905)
$
199,008 $
(136,175)
(32,472)
198,451
(109,152)
(29,932)
(9,079)
30,361
59,367
954
(2,548)
(4,676)
(27,747)
(962)
(21,980)
(9,874)
(15,829)
(942)
(21,060)
(10,866)
(6,270)
(60,563)
(48,697)
2,289
124
14,505
1,589
(6,459)
1,931
2,413
16,094
(4,528)
(12,936)
(14,108)
6,142
23,062
24,234
18,092
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
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
BALANCE AT BEGINNING OF PERIOD IN CASH
AND CASH EQUIVALENTS
BALANCE AT END OF PERIOD IN CASH AND
AND CASH EQUIVALENTS
$
10,126
$
10,126
$
24,234
$
1,112
$
14,692
$
24,882
RECONCILIATION OF NET OPERATING INCOME TO
NET CASH (USED IN)/PROVIDED BY OPERATING ACTIVITIES
Operating income
Adjustments to reconcile net operating income
to net cash (used in)/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 (used in)/provided by operating activities
$
2,298
26,987
28,374
(4,003)
(149)
62
(5,141)
(5,607)
3,816
(3,086)
1,619
(514)
(6,062)
582
(5,141)
5,965
3,816
(2,803)
(7,161)
(1,349)
2,843
601
419
(2,304)
5,901
(9,079)
$
30,361
$
59,367
Page 6 of 13
Page 59
PLATTE RIVER POWER AUTHORITY
SCHEDULE OF NET REVENUES FOR DEBT SERVICE
Unaudited (In Thousands)
Twelve Months Ended
December 31
2014
2015
Month of
December
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
16,170
$
199,433
$
199,867
12,760
157,754
146,611
3,410
41,679
53,256
128
1,672
2,013
3,538
43,351
55,269
-
-
-
$
3,538
$
43,351
$
55,269
Power revenue bonds
Allowance for funds used during construction
$
2,164
-
$
28,637
-
$
32,385
(97)
NET REVENUE BOND SERVICE
$
2,164
$
28,637
$
32,288
TOTAL NET REVENUES
BOND SERVICE
COVERAGE
Power revenue bond coverage ratio
1.64
1.51
1.71
Page 7 of 13
Page 60
Platte River Power Authority
Operating Expenses Variances Exceeding $100,000 - December 2015
Description
Favorable
(Unfavorable)
Coal
Coal was below budget due to lower generation and coal price for the Craig units.
Generation was below budget as a result of surplus sales market conditions and
curtailments on the units for maintenance issues. The coal price from Trapper Mine was
significantly less than budget due to adjustments from an audit and favorable mining
operations. The Rawhide coal price was also below budget as the final coal price
determined under the contract and the fuel surcharge were less than originally budgeted.
$
1,758,304
Purchased Power
Purchased power was below budget due to several factors. Energy was provided to TriState under the Forced Outage Assistance Agreement for Craig Unit 3's forced outage.
Purchased reserves were lower due to an adjustment for a true-up of rates for the prior year
from Xcel Energy. Wind purchases were also under budget as a result of lower generation
due to wind conditions.
$
280,725
O&M Materials and Supplies
O&M materials and supplies were below budget due to lower lime deliveries and
reclassifications of Rawhide Unit 1 scheduled outage expenses.
$
132,833
Overtime Wages
Overtime wages were above budget mainly due to the extension of the Rawhide Unit 1
scheduled outage.
$
(404,784)
Medical and Dental
Claims were more than anticipated. Timing of medical expenses is difficult to predict and
large claims can cause swings in this expense.
$
(538,473)
Page 8 of 13
Page 61
Platte River Power Authority
Capital Additions Variances - December 2015
Capital expenditures at the end of the year were $4.7 million below budget. Of this variance, $4.4 million will be requested to be carried
over to the 2016 budget. The projects listed below ended the year with a budget variance of more than $100,000. In addition, the
amounts below are costs for 2015 and may not represent the total cost of the project.
Project ($ in Thousands)
POWER PRODUCTION
Yampa Work Orders (Platte River's Share) - The Yampa environmental,
controls and other capital projects were below budget at the end of the
year. The remaining funds will be carried over into 2016.
Budget
Actual
Favorable
(Unfavorable)
Carryover
Request
$
12,016
$
10,428
$
1,588
$
1,588
Soldier Canyon 10" Line Modifications with New Raw Water Tank - This
project was delayed due to the scheduled outage taking priority causing
the project to carryover into 2016.
$
1,399
$
856
$
543
$
543
Voltage Regulator Replacement - Unit 1 - This project was placed on hold
as it could not be completed during the scheduled outage due to vendor
delays. The project will be rebudgeted for the 2017 spring outage.
$
319
$
121
$
198
$
-
$
349
$
160
$
189
$
189
Unit 1 Controls Network Cyber Security and Redundancy Upgrade - This
project was delayed due to the scheduled outage taking priority causing
the project to carryover into 2016.
$
894
$
718
$
176
$
176
SUS Communications - This project was canceled due to staffing
constraints.
$
111
$
-
$
111
$
-
-
$
132
$
(132) $
-
$
200
$
(141) $
-
-
$
210
$
(210) $
-
$
277
$
(277) $
Windy Gap Firming Project - The costs for 2015 were for mitigation and
ranchers settlements. The most recent data from Northern Colorado Water
Conservancy District shows the mitigation costs will be incurred in 2016.
Conveyor 2 Gearbox Motor Replacement - This out-of-budget project
replaced a motor essential for unloading coal from the train.
$
Conveyor 2 Gearbox Replacement - This project was above budget due
to purchasing a second gearbox as a spare. Additional funds of $141K
were required to complete the purchase and installation of the original
gearbox.
$
Tripper Deck Expansion - This out-of-budget project for $299K allows
safer access and a larger work area for both the new dust collector and the
conveyor 10A gearbox. The final door will be installed in 2016 during the
screen outage.
$
Generator Lead Bushing Enhancements - This out-of-budget project for
$330K replaced the generator lead bushings with enhanced bushings to
ensure reliability and address overheating concerns. The project is under
the original projection due to installation labor being less than expected.
$
59
Page 9 of 13
89
-
Page 62
Platte River Power Authority
Capital Additions Variances - December 2015
Project ($ in Thousands)
POWER DELIVERY
Fiber Optic Route to Estes Park - This project is required to provide
redundancy for Platte River's transmission operations with Estes Park,
enable retirement of the antiquated digital microwave technology, ensure
continued ability of Estes Park to receive broadband communications, and
has the potential to provide Estes Park redundancy in the case of a fiber
outage. Costs were for the route design, six miles of underground fiber
conduit, and vaults along County Road 43 between Drake and Glen
Haven. The project was initially delayed due to obtaining the right of way
along County Road 43, then experienced weather issues. The project will
carryover into 2016.
Budget
Favorable
(Unfavorable)
Actual
Carryover
Request
$
1,212
$
747
$
465
$
465
Optical Ground Wire Rawhide to LaPorte - The construction contract for
this project was below budget due to favorable pricing received from the
vendor.
$
958
$
585
$
373
$
-
Crossroads 115/230kV Substation Transformer T2 Addition - The
construction contract for this project was below budget due to favorable
pricing from the vendor. A relay panel design change also resulted in
lower costs. As-built drawings will be completed and the project will be
finalized in 2016.
$
890
$
667
$
223
$
12
LaPorte Substation - 230kV Expansion - This project was below budget
due to weather delays and difficulties with installation of the foundations.
Additional over budget funds of $162K were required to complete the
project, which will be included in the carryover amount into 2016.
$
5,087
$
4,926
$
161
$
323
Emergency Storm Structures - This project was delayed due to a change
in project scope. Staff is working with a consultant to update the
emergency storm structures plan for transmission lines.
$
120
$
9
$
111
$
50
Boyd 115/230kV Substation Transformer T2 Addition - The design costs
for this project are delayed until 2016 as a result of staffing constraints.
$
120
$
10
$
110
$
110
Breaker Replacement - Richard Lake Breaker 562 - This out-of-budget
project for $157K was to replace the failing breaker to prevent loss of load.
The total project costs was less than the original projection due to less
labor than expected and will be finalized in 2016.
$
-
$
141
$
(141) $
1
Station Service Replacement - Ault Substation (Western Joint Facilities) This out-of-budget project for $191K is a result of Platte River's joint
ownership in the Ault Substation.
$
-
$
191
$
(191) $
CORPORATE SERVICES
Storage Array Replacement - This project was below budget due to
favorable pricing received from the vendor.
$
411
$
196
$
215
$
Landscape Improvements - Headquarters Southeast Corner - This
project was below budget due to a reduction in scope necessary as a
result of the construction of the new intersection at Horsetooth and
Timberline. Final landscape improvements will be done in 2016.
$
175
$
32
$
143
$
Page 10 of 13
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34
Page 63
Platte River Power Authority
Capital Additions Variances - December 2015
Project ($ in Thousands)
Budget
Favorable
(Unfavorable)
Actual
Substation Security Projects - The remainder of this project has been
canceled. The needs of the overall security system will be evaluated.
$
151
$
Security - Longs Peak Substation - This project was delayed due to
staffing constraints and will be done in 2016.
$
127
$
9
-
Carryover
Request
$
142
$
-
$
127
$
127
Page 11 of 13
Page 64
PLATTE RIVER POWER AUTHORITY
MONTHLY STATISTICS
December 2015
December
Budget
Actual
12 Months Rolling
Favorable
(Unfavorable)
Budget
Favorable
(Unfavorable)
Actual
Resources (MWh)
Net Generation
Rawhide
Craig
Peaking Units
Wind
188,445
94,185
399
30,094
188,862
74,244
29,506
417
(19,941)
(399)
(588)
1,962,240
1,080,716
19,128
296,519
1,933,476
955,723
56,963
273,432
(28,764)
(124,993)
37,835
(23,087)
Purchases
Western LAP
Western CRSP
Other Purchases
Forced Outage Exchange
Interchange Received
Total Receipts
10,461
51,146
263
374,993
10,461
51,146
998
(990)
354,227
735
(990)
(20,766)
109,536
502,467
140,798
4,111,404
109,536
502,467
232,653
2,500
(594)
4,066,156
91,855
2,500
(594)
(45,248)
13,774
131,685
71,342
65,473
282,274
13,887
135,416
70,179
63,077
282,559
113
3,731
(1,163)
(2,396)
285
131,169
1,506,358
815,648
748,995
3,202,170
129,634
1,516,550
801,097
753,920
3,201,201
(1,535)
10,192
(14,551)
4,925
(969)
87,920
87,920
59,489
59,489
(28,431)
(28,431)
854,797
854,797
713,449
713,449
(141,348)
(141,348)
4,799
3,600
8,579
3,600
3,780
54,437
62,800
88,706
62,800
34,269
374,993
354,227
4,111,404
4,066,156
Deliveries (MWh)
Municipal Sales
Estes Park
Fort Collins
Longmont
Loveland
Total Municipal Sales
Surplus Sales
Short-Term Surplus Sales
Total Surplus Sales
Forced Outage Exchange
Losses and Other
Total Deliveries
(20,766)
December
Budget
Actual
(45,248)
12 Months Rolling
Favorable
(Unfavorable)
Budget
Actual
Favorable
(Unfavorable)
Coincidental Demand (kW)
Estes Park
Fort Collins
Longmont
Loveland
Total Coincidental Demand
25,041
232,934
126,941
116,050
500,966
21,948
233,428
121,521
110,035
486,932
(3,093)
494
(5,420)
(6,015)
(14,034)
217,400
2,841,614
1,589,037
1,460,014
6,108,065
214,912
2,819,554
1,545,606
1,447,234
6,027,306
(2,488)
(22,060)
(43,431)
(12,780)
(80,759)
Non-Coincidental Demand (kW)
Estes Park
Fort Collins
Longmont
Loveland
25,799
233,428
121,521
110,350
239,641
2,822,704
1,560,153
1,451,236
Page 12 of 13
Page 65
Platte River Power Authority
December 2015 - Payments of $50,000 or More
Vendor
Description
Payment Amount
Operations and Maintenance Payments
Non-Recurring O&M Payments
TEI Construction Services Inc
Kennametal DBA Conforma Clad
Western Refractory
Georgia Western Inc
Power Flow Engineering
RMS Energy Co LLC
Capcorp - Conveyor Aggregate Products Corp
Power Technical Services LLC
Alstom Power
Precision Industrial Contractors Inc
Miller Insulation Co Inc
Structural Integrity Associates Inc
Non-Recurring O&M Payments Total
RH outage boiler
RH outage boiler support
RH outage refractory work
RH outage valve repair
RH outage runner and shaft assembly
RH outage isophase inspection
RH outage conveyor belt replacements
RH outage coordinator scheduler
RH outage boiler support and parts
RH outage balance support
RH outage insulation
RH outage high energy piping inspection
$1,847,806
239,270
219,933
212,316
140,000
76,000
73,735
65,022
57,925
53,425
51,820
50,895
$3,088,147
Regular Recurring O&M Payments
Cloud Peak Energy Resources LLC
BNSF Railway Company
Trapper Mining Inc
Colowyo Coal Company
Spring Canyon Energy II LLC
Duke Energy Retail Sales LLC
Medicine Bow Wind LLC
Mieco Inc
Xcel Energy
Graymont Western Us Inc
Tri-State G & T
Western Area Pwr Adm-DOE
Public Service Co of Colorado
Cargill Power Markets LLC
Basin Electric Power Coop
Black Hills Power Inc
Xcel Energy
Wells Fargo
First Bankcard Center
Western States Power Corporation
City of Fort Collins
Clearesult Consulting, Inc.
Leidos, Inc.
Co Dept of Public Health & Environment
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
Natural gas
Natural gas transportation
Lime
Yampa O&M
Purchased power (October 2015 CRSP and LAP)
Purchased power
Purchased power
Purchased power
Purchased power
Ancillary services
Pension contribution
Platte River's credit card payment
Project E
Utility payments
Energy efficiency, DSM
Energy efficiency, DSM
Annual emission fee
$2,060,086
1,172,185
842,491
411,719
441,578
153,924
51,030
351,000
113,382
62,342
2,005,591
1,913,800
1,751,295
608,281
353,253
120,194
301,116
275,000
71,292
174,600
55,859
93,276
50,000
58,748
$13,492,042
$16,580,189
Capital Payments
Dis-Tran Packaged Substations LLC
Air Cure Incorporated
Addison Construction Co
American Civil Constructors
Exponential Engineering Company
Emerson Process Management Power & Water
Western United Electric Supply Corp
Selcon Utility Inc
Interstates Construction Services Inc
Lightriver Technologies
H & H Industrial
Total Capital Payments
GRAND TOTAL: PAYMENTS OF $50,000 OR MORE
Substation structures and equipment
Tripper dust collection replacement
Substation construction
Fiber optic conduit and vault installation
Electrical engineering support
RH Unit 1 DSC replacement
LaPorte substation - control cables
Fiber optic replacement - Estes Park
Electrical services
DXC equipment in EO and DRC
RH outage balance support
$1,105,207
501,059
479,221
191,407
183,015
152,364
147,609
125,927
100,432
60,118
50,145
$3,096,504
$19,676,693
Page 13 of 13
Page 66
Page 67
Memorandum
Date:
February 17, 2016
To:
Board of Directors
From:
Jackie A. Sargent, General Manager/CEO
Jason Frisbie, Chief Operating Officer
Heather Banks, Fuels and Water Manager
Subject:
Windy Gap Firming Project – Fifth Interim Agreement
This memo provides information regarding a request for funding to start Phase V of the Windy Gap
Firming Project. The funding request is from the Municipal Subdistrict, Northern Colorado Water
Conservancy District acting by and through the Windy Gap Firming Project Water Activity Enterprise.
Phase V of the project includes detailed engineering design, continuation of permitting, additional land
acquisition at the proposed Chimney Hollow Reservoir site, planning and implementation of required
mitigation and enhancement measures, and the development of contracts and other agreements that
will be required to integrate the Firming Project with the Windy Gap Project. The last executed
agreement and associated payment made to the Windy Gap Firming Project Enterprise Fund was in
2014. Phase V will be divided into two phases, with an anticipated amendment for additional work and
funding in 2017. This phase, which is focused on the engineering design, is scheduled to be completed
in 2017.
Fifth Interim Agreement:
The Fifth Interim Agreement requests $13.7 million to begin Phase V. Of that total, approximately 70
percent of the payment is reserved for design, and the remaining funding will be spent on the other
components of Phase V.
Attached is the agreement for the funding, with an associated exhibit showing the allocation of costs for
the Fifth Interim Agreement. Included in your packet is a resolution approving payment of Platte River’s
pro rata share, which is $1,918,211 of the $13.7 million requested from all participants (detailed in
Exhibit A). This amount is included in the approved 2016 Platte River budget. Including this request,
Platte River will have invested $4.8 million in the Windy Gap Firming Project through the first half of
Phase V. The anticipated Platte River expenditure in 2017 is $790,569, which would complete Phase V
(design phase). The revised estimated cost of the overall project at this time is $399.5 million, of which
Platte River’s share is $55.8 million.
To allow the project to move forward into the next phase, staff recommends adoption of the associated
resolution, and will be available to answer any questions you may have.
Attachment
Page 68
Page 69
RESOLUTION NO. __-16
WHEREAS, Platte River Power Authority (Platte River) holds 160 units of the Windy Gap
Project, constructed and operated by the Municipal Subdistrict, Northern Colorado Water
Conservancy District (MS–NCWCD); and
WHEREAS, Platte River has participated in efforts to develop a firming reservoir,
commonly referred to as the Windy Gap Firming Project, which would provide greater delivery
assurance for the Windy Gap resource; and
WHEREAS, Platte River has provided funding for the Windy Gap Firming Project
through a number of Interim Agreements approved by the Board; and
WHEREAS, MS–NCWCD informed Platte River that a new Fifth Interim Agreement has
been developed to continue activities involving engineering and design of the firming project and
related expenses; and
WHEREAS, capital funds exist in the 2016 budget to contribute the Platte River pro rata
share for the completion of activities under the Fifth Interim Agreement; and
WHEREAS, Platte River’s management recommends that the Platte River Board of
Directors authorize the execution of the Fifth Interim Agreement in order to continue the firming
project development process.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of Platte River Power
Authority that the General Manager is authorized to execute the Fifth Interim Agreement with
the MS-NCWCD.
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
Page 70
Page 71
Page 72
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Page 77
PLATTE RIVER POWER AUTHORITY
LEGAL AND GOVERNMENTAL AFFAIRS REPORT
FEBRUARY 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.
Some depositions were conducted during December 2015 and additional depositions are
scheduled during February and March. The parties are attempting to identify a mutually
agreeable mediator. A trial date has been assigned for July 2016.
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 such 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,
Page 78
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. The referee set a deadline of March 31, 2016 for the
applicants to respond to opposers’ comments.
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.
ONGOING AND CURRENT MATTERS OF SIGNIFICANCE
Estes Park Long-Haul Fiber Link — During 2004 Platte River, Northern Colorado Water Conservancy
District and Western Area Power Administration constructed a 72 strand fiber line from Loveland to
Estes Park. The line was attached to existing Western transmission infrastructure and Western holds
nominal title to the fiber. Each party funded an agreed share of the costs of the fiber and received a
perpetual license to use their respective share. Platte River paid the costs of 36 strands. After
construction was complete, Platte River transferred 24 fibers to Estes Park and received payment in an
amount of $287,106.42. This occurred in 2005 and there is no documentation for this transaction other
than an invoice and cancelled check. Platte River uses the 12 strands it retained for SCADA and Estes
Park uses some of its 24 strands for municipal operations and has leased some of the strands to
various telecommunications providers. Due to the destruction which occurred in the Big Thompson and
St. Vrain canyons in 2013, these fibers are now the only telecommunication link to Estes Park.
A lightning strike in 2011 damaged the fiber and Platte River looked to its agreement with Estes Park to
determine cost responsibility. At that time Platte River and Estes Park realized there was no agreement
in place that outlined rights and obligations. This in turn led to a review of the initial partnering
agreement between Platte River, Northern and Western. It became clear that Western retained the right
to consent to any assignment of fibers by Platte River, which process had not occurred in 2005 when
the fiber was transferred to Estes Park.
In March of 2014 Platte River sought such consent from Western and was informed that Western would
not consent to any assignment that allowed “commercial” use of the fiber. Western cited federal law as
support for its position. This position was different than the prior reading of various federal statutes that
Platte River Power Authority
2
February 2016 Legal and Governmental Affairs Report
Page 79
had been used to justify commercial leasing of fiber on federal infrastructure and would eliminate
broadband, land line telecommunications and 911 service to Estes Park all of which are now entirely
dependent upon the fibers assigned to Estes Park.
Numerous meetings occurred between Western, Estes Park, and Platte River to explore solutions to
this problem. Recently Platte River was notified that Western had re-evaluated its legal position
and is now of the opinion that commercial uses of fiber on transmission structures are allowed.
To resolve the issues Western requested that Estes Park provide a legal opinion that the uses of
the 24 fibers in the Estes Park bundles were authorized under state law. The attorneys
representing Western, Estes Park and Platte River discussed the nature of the opinion being
requested, and the Estes Park town attorney is preparing such opinion.
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 effect the stay.
Commodity Futures Trading Commission (“CFTC”) Proposed Rule — The CFTC has announced a
proposed rule eliminating the requirement that entities that are not Swap Dealers or Major Swap
Participants file an annual Form TO disclosing otherwise unreported trade options. Currently, Platte
River undertakes an annual review of transactions necessary to assess potential reporting obligations.
Platte River filed a Form TO for 2014 reporting transactions that could be considered trade options.
This relief will eliminate the time consuming annual review of transactions necessary to assess
potential reporting obligations. The proposed rule has not yet been adopted. Consequently, Platte
River will file a Form TO for 2015 reporting transactions that could be considered trade options.
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,
Platte River Power Authority
3
February 2016 Legal and Governmental Affairs Report
Page 80
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 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.
Staff continues to work with our utility colleagues through the Colorado River Energy
Distributors Association (“CREDA”) to analyze the hydropower impact of the LTEMP.
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 has led most commentators to believe that this will be an unproductive
session. The deadlines for bill introduction, absent late-bill approval from leadership, have
passed and as of February 12 there are 261 bills pending in the House and 124 bills in the
Senate. Three bills pertain either directly to Clean Power Plan implementation or to climaterelated emission mandates.
On the Senate side, 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 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. S.B. 16-046 is sponsored by Senator
Cooke from Weld County as is the other Clean Power Plan bill in the Senate – S.B. 16-061. This
latter bill 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.
House Bill 016-1004 would require 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 has passed out of the House, but is expected to die in the Senate.
Another bill with a local sponsor is S.B. 016-037, sponsored by Senator Kefalas. This bill would
modify the Colorado Open Records Act to require political subdivisions to provide records
stored in an electronic format in a “native” electronic format when so requested. Concerns have
been raised about the continued integrity of records provided electronically as well as on the
implementation costs, although to date no fiscal note has been filed.
United States Congress — The Energy Bill seems to have stalled in the Senate due to the large
number of filed amendments and complications involving the Flint, Michigan water crisis. Due
to the fact that 2016 is an election year there is a shorter calendar for “policy” bills, and
commentators suggest that if the bill doesn’t pass by April the window will have closed. The
Senate calendar is crowded with other matters, but the sponsors are still trying to push the bill.
Platte River Power Authority
4
February 2016 Legal and Governmental Affairs Report
Page 81
January 2016 Operating Report
EXECUTIVE SUMMARY
Municipal demand was significantly below budget in January, but energy came in close to budget.
Baseload generation was significantly below budget for the month due to the timing of a minor
scheduled outage on Rawhide Unit 1 to remove protective turbine screens (originally scheduled in
December 2015), two forced outages on Craig Unit 2 for controls issues and a tube leak, and unit
generation held back due to ongoing soft market pricing. Wind generation outperformed budget in
January. The soft market (excess regional capacity and low natural gas prices) continues to adversely
affect surplus sales volume and pricing. Below budget generation at the Craig Station significantly
increased the per-megawatt-hour operating costs at the facility for the month, which resulted in slightly
above budget total dispatch costs for January.
Category
January Variance
Municipal Demand
(6.0%)

Municipal Energy
(0.8%)

(21.1%)

6.2%

Surplus Sales Volume
(49.7%)

Surplus Sales Price
(11.4%)

(1.5%)

Baseload Generation
Wind Generation
Resource Cost
Variance Key: Favorable:  >2% | Near budget:  +/- 2% | Unfavorable:  <-2%
January 2016 Operating Report
1
Page 82
OPERATIONAL OVERVIEW
Safety. There were no lost time accidents in the month of January.
2016 Goal
January Actual

0
0
YTD Total


0
System Disturbances. There was no loss of interconnected utility or city load in the month of January.
2015 Goal
January Actual

0
0
YTD Total


0
Peak Day Obligation. Peak demand for the month was 463 megawatts, which occurred on January
11, 2016, at 19:00 hours and was 29 megawatts below budget. Platte River’s total obligations at the
time of the peak were 523 megawatts.
Peak Day Obligation: January 11, 2016
650
600
550
Total Obligation
523
Forecast Demand
492
500
450
Municipal
Obligation
463
MW
400
350
300
250
200
150
100
50
0
1
2
3
4
5
6
7
8
Hydro
January 2016 Operating Report
9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hour
Wind
Rawhide
Craig
CTs
2
Page 83
POWER GENERATION
Rawhide Performance. Unit 1 was off-line at the end of the month to remove protective turbine
screens that were installed after the major outage, resulting in below budget equivalent availability. Net
capacity factor was below budget due to the minor screen outage as well as required testing and tuning
after completion of the major outage last year.
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%
January
January
YTD
YTD
Rawhide emissions levels were below compliance limits for the month of January:
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
January
YTD
January 2016 Operating Report
0.000
January
YTD
January
YTD
3
Page 84
Craig Station Performance. Equivalent availability factor was below budget due to separate forced
outages on Craig Unit 2 both caused by control system issues. A tube leak was discovered, requiring a
repair after the first trip. Net capacity factor was significantly below budget due to Craig Unit 2 forced
outages and low off-peak market pricing.
Craig Equivalent Availability
Budget
Craig Net Capacity Factor
Actual
Budget
100%
100%
95%
95%
90%
90%
85%
85%
80%
80%
75%
75%
70%
70%
65%
65%
60%
60%
55%
55%
50%
Actual
50%
January
YTD
January
YTD
Peaking. CT units were run in January to facilitate surplus sales and to complete required quarterly
testing. Natural gas burns were not budgeted for January, however pricing continues to be favorable.
MWhs
1,200
CT Generation
Budget
Actual
1,000
$/MBtu
1,200
1,000
$3.50
Natural Gas Pricing
Budget
Actual
$3.00
$2.50
800
800
$2.00
600
600
$1.50
400
400
200
200
0
0
January
January 2016 Operating Report
YTD
$1.00
$0.50
$January
YTD
4
Page 85
Renewable Supply. Hydro allocations were received as budgeted. Wind generation was above budget
due to higher than expected wind output.
MWh (000's)
MWh (000's)
Hydro Generation
70
Budget
Actual
Wind Generation
Budget
35
60
30
50
25
40
20
30
15
20
10
10
5
0
Actual
0
January
YTD
January
YTD
SALES AND PURCHASES
Surplus Sales. Surplus sales volume and pricing were significantly below budget due to the ongoing
depressed regional market caused by excess capacity within the western interconnect and historically
low natural gas pricing.
MWh (000's)
Sales Volume
Budget
120
$/MWh
Actual
$30
100
$25
80
$20
60
$15
40
$10
20
$5
Average Sales Price
Budget
Actual
$0
0
January
January 2016 Operating Report
YTD
January
YTD
5
Page 86
Purchases. There were no purchases budgeted for January, however market pricing was at times
below unit operating costs and was utilized to cover Municipal load.
Energy Purchases
MWhs
Budget
12,000
$/MWh
Actual
12,000
10,000
Average Purchase Price
Budget
$25
Actual
10,000
$20
8,000
8,000
6,000
6,000
4,000
4,000
2,000
2,000
$5
0
$0
$15
$10
0
January
YTD
January
YTD
DISPATCH COST
Dispatch Cost. January dispatch costs were slightly above budget primarily due to below budget
capacity factor operations at the Craig Station.
January 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: $28.32 | Blended Actual: $28.75
January 2016 Operating Report
6
Page 87
POWER DELIVERY
Major System Operations Projects Benefitting the Municipalities:
Location
Estimated
Finish Date
Percent
Complete
Loveland
01/2016
90%
Crossroads city transformer addition
Fort Collins
05/2016
85%
Laporte substation 230kv expansion
Fort Collins
05/2016
80%
Laporte substation 115kv adaptations and refurbishments
Estes Park
07/2016
90%
Fiber loop replacement
Rawhide
08/2016
42%
Rawhide solar project
Estes Park
11/2015
100%
New SCADA system
Description
EVENTS OF SIGNIFICANCE
Power Production:
•
Rawhide Unit 1 was taken off-line January 28 to begin a planned outage for the removal of the
protective screens from the main steam valves. This outage is considered an extension of the
2015 fall planned major maintenance outage. Scheduled projects included the removal of the
protective screens on the main steam valves, unit wash down, replacement of the LVDT’s on
the main steam throttle valves, and the inspection, reworking and resetting of the steam turbine
seal oil drain regulator.
Power Delivery:
•
During the month of January several purchases were made at market pricing that were
significantly below operating costs, enabling us to utilize this energy to cover Municipal load.
•
During January Platte River was able to self supply 16 megawatts of spinning reserves. This
resulted in a monthly net savings of nearly $100,000.
January 2016 Operating Report
7
Page 88
Page 89
PLATTE RIVER POWER AUTHORITY – Financial Highlights Year-to-Date January 2016
Platte River reported favorable results. Net income was $0.5 million and was above budget $0.2 million due to belowbudget operating expenses, partially offset by below-budget revenues. Revenues were lower primarily due to the
surplus sales market conditions, as overall expenses were under budget. There was also $0.2 million unrealized gain on
investments impacting net income. Details are described below.
Results for the end of the year vary due to municipal load variations, market conditions, operation and maintenance
expenses. At this point, it is estimated that year end net income would be approximately $10.0 million but could vary
between $6.7 and $11.7 million depending on the magnitude of these factors.
Ke y Fina nc ia l R e s ults
($ Millio ns )
J a nua ry
N e t Inc o me
D e b t Co v e ra g e
B ud g e t
Ac tua l
$
0.3 $
0.5
1.53x
1.54x


T o ta l R e v e nue s
$

Municipal Sales Revenue
Surplus Sales and Other Revenue
T o ta l Op e ra ting E xp e ns e s
Purchased Power
Fuel Expense
Operations and Maintenance
Administrative and General
Ca p ita l Ad d itio ns
$
$
18.4
15.1
3.3
15.1
3.1
5.1
5.3
1.6
2.7
$
$
$
16.6
14.8
1.8
13.1
3.3
3.7
4.8
1.3
1.2








A nnua l
Fa v o ra b le
(U nfa v o ra b le )
$ 0.2
66.7%
.01x
0.7%
B ud g e t
$ 10.7
1.53x
$ (1.8)
(0.3)
(1.5)
$ 2.0
(0.2)
1.4
0.5
0.3
$ 217.5
185.6
31.9
$ 169.9
34.3
55.0
61.7
18.9
$
1.5
(9.8%)
(2.0%)
(45.5%)
13.2%
(6.5%)
27.5%
9.4%
18.8%
55.6%
$
46.5
>2%  Favorable | 2% to -2%  At or Near Budget | <-2%  Unfavorable
Below is a summary of key financial variances year to date:

Below-Budget Operating Expenses: Overall operating expenses were 13.2% 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. These above-budget expenses were partially offset by belowbudget purchased reserves as additional reserves were held on the Craig Units rather than held by Xcel
Energy.
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. Coal prices from the Trapper and Colowyo mines for the Craig Units and
transportation costs for Rawhide Unit 1 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 the lower operations and
maintenance expenses for Rawhide, including chemical purchases and rail car parts.
o Administrative and general expenses were below budget mainly due to demand side management
expenses as a result of the unpredictability of the completion of customer’s energy efficiency projects.

Below-Budget Capital Additions: Capital additions were below budget $1.5 million mainly due to scheduling
changes. At this time, projects are estimated to be at budget at the end of the year.

Below-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 $1.5 million
below budget. The Craig units and Rawhide Unit 1 produced 38 GWh and 24 GWh less energy, respectively.
This contributed approximately $1.4 million to the lower revenues, based on current surplus sales prices.
Page 1 of 9
Page 90
PLATTE RIVER POWER AUTHORITY
SCHEDULE OF REVENUES AND EXPENDITURES, BUDGET TO ACTUAL
January 2016
Non-GAAP Budgetary Basis (In Thousands)
Month of January
Budget
Actual
Favorable
(Unfavorable)
REVENUES
ELECTRIC OPERATING REVENUES
Municipal sales
$
Short-term surplus sales and wheeling
Total operating revenues
15,129
$
14,863
$
(266)
3,024
1,536
(1,488)
18,153
16,399
(1,754)
OTHER REVENUES
Interest income (1)
64
57
(7)
Other income
175
184
9
Total other revenues
239
241
2
Total Revenues
$
18,392
$
16,640
$
$
3,137
$
3,290
$
(1,752)
EXPENDITURES
OPERATING EXPENSES
Purchased power
(153)
Fuel expense
5,056
3,747
1,309
Production expenses
3,858
3,418
440
Transmission expenses
1,433
1,399
34
Administrative and general
1,597
1,270
327
15,081
13,124
1,957
Total operating expenses
DEBT EXPENSE
Interest expense
779
779
-
Principal
1,385
1,385
-
Total debt expense
2,164
2,164
-
CAPITAL ADDITIONS
Production
1,979
602
1,377
Transmission
629
459
170
General
125
173
(48)
2,733
1,234
Total capital additions
1,499
Total Expenditures
$
19,978
$
16,522
$
3,456
Revenues Less Expenditures
$
(1,586)
$
118
$
1,704
(1) Excludes unrealized investment gains and losses.
Page 2 of 9
Page 91
PLATTE RIVER POWER AUTHORITY
STATEMENTS OF NET POSITION
Unaudited (In Thousands)
January 31
2016
2015
ASSETS
Utility Plant, at original cost
Land and land rights
Plant and equipment in service
Less - Accumulated depreciation and amortization
$
Construction work in progress
Total utility plant
14,515
1,275,987
(762,209)
528,293
45,136
573,429
$
14,515
1,270,710
(735,830)
549,395
20,337
569,732
Special Funds and Investments
Restricted funds and investments
Dedicated funds and investments
Total special funds and investments
24,404
49,429
73,833
28,171
69,860
98,031
18,104
16,308
14,853
6,926
14,410
12,575
2,900
86,076
24,992
20,491
14,140
7,091
8,121
12,303
1,801
88,939
2,389
1,128
3,517
736,855
3,003
1,343
4,346
761,048
981
5,141
6,122
1,835
1,835
183,465
3,228
6,693
9,642
203,028
201,456
6,291
9,332
217,079
16,615
3,063
15,838
1,559
1,762
38,837
241,865
21,980
2,775
13,034
1,733
1,286
40,808
257,887
1,323
613
1,936
9,490
9,490
366,712
22,845
109,619
499,176
338,426
26,438
130,642
495,506
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
Non-Current Assets
Regulatory assets
Other long-term assets
Total non-current assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on debt refundings
Pension deferrals
Total deferred outflows of resources
LIABILITIES
Non-Current Liabilities
Long-term debt, net
Capitalized lease obligation
Net pension liability
Other liabilities and credits
Total non-current 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 liabilities and credits
Pension deferrals
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for debt related purposes
Unrestricted
Total net position
$
$
Page 3 of 9
Page 92
PLATTE RIVER POWER AUTHORITY
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
Unaudited (In Thousands)
Twelve Months Ended
January 31
2015
2016
Month of
January
OPERATING REVENUES
Sales to municipalities
Sales for resale and other
$
14,863
1,536
$
176,711
22,356
$
169,970
29,429
16,399
199,067
199,399
3,290
3,747
4,961
1,312
2,257
32,848
46,119
62,648
15,886
27,002
27,500
49,166
55,836
14,632
27,913
15,567
184,503
175,047
832
14,564
24,352
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
62
184
(779)
31
183
749
918
(9,700)
351
(180)
651
1,073
(10,710)
83
365
206
Total nonoperating revenues and expenses
(319)
(7,862)
(8,332)
513
6,702
16,020
Total operating revenues
OPERATING EXPENSES
Purchased power
Fuel
Operations and maintenance
Administrative and general
Depreciation
Total operating expenses
Operating income
NONOPERATING REVENUES AND EXPENSES
INCOME BEFORE CONTRIBUTIONS
-
Contribution of assets to municipalities
CHANGE IN NET POSITION
513
NET POSITION AT BEGINNING OF PERIOD
NET POSITION AT BEGINNING OF PERIOD, ADJUSTED
$
499,176
(155)
6,547
498,663
498,663
Adjustment for change in accounting principle
NET POSITION AT END OF PERIOD
(155)
15,865
495,506
(2,877)
492,629
$
499,176
479,641
479,641
$
495,506
Page 4 of 9
Page 93
PLATTE RIVER POWER AUTHORITY
STATEMENTS OF CASH FLOWS
Unaudited (In Thousands)
Twelve Months Ended
January 31
2015
2016
Month of
January
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments for operating goods and services
Payments for employee services
$
16,624
(14,496)
(2,572)
$
(444)
Net cash (used in)/provided by operating activities
198,609 $
(141,290)
(31,981)
198,753
(105,968)
(30,192)
25,338
62,593
93
(2,607)
-
(29,527)
(639)
(21,980)
(9,874)
(15,683)
(663)
(21,060)
(10,866)
(2,514)
(62,020)
(48,272)
10,726
210
28,179
1,615
(6,676)
1,641
10,936
29,794
(5,035)
7,978
(6,888)
9,286
10,126
24,992
15,706
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
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
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
BALANCE AT BEGINNING OF PERIOD IN CASH
AND CASH EQUIVALENTS
BALANCE AT END OF PERIOD IN CASH AND
AND CASH EQUIVALENTS
$
18,104
$
18,104
$
24,992
$
832
$
14,564
$
24,352
RECONCILIATION OF NET OPERATING INCOME TO
NET CASH (USED IN)/PROVIDED BY OPERATING ACTIVITIES
Operating income
Adjustments to reconcile net 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 (used in)/provided by operating activities
$
2,257
27,002
27,913
225
(1,033)
(1,272)
(2,178)
408
317
(548)
(6,561)
(440)
(5,141)
2,116
3,816
(1,916)
(7,554)
(388)
1,940
1,404
3,511
(2,248)
6,109
(444)
$
25,338
$
62,593
Page 5 of 9
Page 94
PLATTE RIVER POWER AUTHORITY
SCHEDULE OF NET REVENUES FOR DEBT SERVICE
Unaudited (In Thousands)
Twelve Months Ended
January 31
2015
2016
Month of
January
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
16,399
$
199,067
$
199,399
13,310
157,501
147,134
3,089
41,566
52,265
241
1,689
1,725
3,330
43,255
53,990
-
-
-
$
3,330
$
43,255
$
53,990
Power revenue bonds
Allowance for funds used during construction
$
2,164
-
$
28,103
-
$
32,383
(83)
NET REVENUE BOND SERVICE
$
2,164
$
28,103
$
32,300
TOTAL NET REVENUES
BOND SERVICE
COVERAGE
Power revenue bond coverage ratio
1.54
1.54
1.67
Page 6 of 9
Page 95
Platte River Power Authority
Operating Expenses Variances Exceeding $100,000 - January 2016
Description
Favorable
(Unfavorable)
Coal
Coal was below budget due to generation and price at Craig and Rawhide. Generation was
below budget as the Craig Units were held back due to the surplus sales market and experienced
maintenance issues. Rawhide Unit 1's generation was below budget due to the screen outage.
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 lower than expected
transportation prices.
$
1,134,652
Contracted Services
Contracted services were below budget mainly due to lower operations and maintenance
expenses at Rawhide, Headquarters, and joint facilities. There were also timing and delays of
energy efficiency projects, website design, and software maintenance and support.
$
316,005
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, ash pond chemicals, and miscellaneous supplies
were not required. Timing of lime, PRS chemical, and BPAC deliveries also contributed to the belowbudget variance.
$
171,657
Natural Gas
Natural gas was below budget as a result of over estimating costs for the required testing of the
combustion turbines.
$
137,075
Professional Services
Professional services were below budget due to the marketing and emissions outlooks project
and Rawhide engineering services. Legal services were not required as anticipated. Lastly, the
4160 & 480 volt breaker/relay coordination has been delayed until the second quarter.
$
130,243
Energy Efficiency - Rebates/Incentives
These expenses were below budget due to the unpredictability of the completion of customer's
energy efficiency projects.
$
109,063
Purchased Power
Purchased power was above budget due to supplemental purchases, which were required during
the screen outage at Rawhide and Craig Unit 2 being off-line several days. 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 Craig Units.
$
(153,545)
Medical and Dental
Claims were more than anticipated. Timing of medical expenses is difficult to predict and large
claims can cause swings in this expense.
$
(189,628)
Page 7 of 9
Page 96
PLATTE RIVER POWER AUTHORITY
MONTHLY STATISTICS
January 2016
January
Budget
12 Months Rolling
Favorable
(Unfavorable)
Actual
Budget
Favorable
(Unfavorable)
Actual
Resources (MWh)
Net Generation
Rawhide
Craig
Peaking Units
Wind
Solar
Purchases
Western LAP
Western CRSP
Other Purchases
Forced Outage Exchange
Interchange Received
Total Receipts
196,491
101,130
30,589
172,204
62,767
1,014
32,481
-
-
(24,287)
(38,363)
1,014
1,892
-
1,970,286
1,087,712
18,866
296,354
1,924,215
934,766
57,977
274,154
-
(46,071)
(152,946)
39,111
(22,200)
-
-
10,178
51,663
390,051
10,178
51,663
10,403
(858)
339,852
10,403
(858)
(50,199)
109,536
502,467
140,460
4,125,681
109,536
502,467
242,716
2,500
(4,561)
4,043,770
102,256
2,500
(4,561)
(81,911)
Municipal Sales
Estes Park
Fort Collins
Longmont
Loveland
Total Municipal Sales
13,224
131,342
70,980
64,616
280,162
13,390
133,688
69,340
61,600
278,018
166
2,346
(1,640)
(3,016)
(2,144)
131,126
1,506,927
816,818
749,652
3,204,523
130,185
1,521,006
801,873
749,628
3,202,692
(941)
14,079
(14,945)
(24)
(1,831)
Surplus Sales
Short-Term Surplus Sales
Total Surplus Sales
104,005
104,005
52,291
52,291
(51,714)
(51,714)
865,561
865,561
687,059
687,059
(178,502)
(178,502)
5,884
9,543
3,659
55,597
62,800
91,219
62,800
35,622
390,051
339,852
4,125,681
4,043,770
Deliveries (MWh)
Forced Outage Exchange
Losses and Other
Total Deliveries
(50,199)
January
Budget
Actual
(81,911)
12 Months Rolling
Favorable
(Unfavorable)
Budget
Actual
Favorable
(Unfavorable)
Coincidental Demand (kW)
Estes Park
Fort Collins
Longmont
Loveland
Total Coincidental Demand
21,835
228,294
127,632
114,652
492,413
20,733
221,306
116,665
104,205
462,909
(1,102)
(6,988)
(10,967)
(10,447)
(29,504)
215,386
2,840,506
1,593,409
1,462,856
6,112,157
216,948
2,819,528
1,543,683
1,439,293
6,019,452
1,562
(20,978)
(49,726)
(23,563)
(92,705)
Non-Coincidental Demand (kW)
Estes Park
Fort Collins
Longmont
Loveland
24,941
221,306
116,665
104,205
240,125
2,822,678
1,557,418
1,443,295
Page 8 of 9
Page 97
Platte River Power Authority
January 2016 - Payments of $50,000 or More
Vendor
Description
Payment Amount
Operations and Maintenance Payments
Non-Recurring O&M Payments
Siemens Energy Inc
TIC-The Industrial Company Wyoming District
Turbo Filtration LLC
Miller Insulation Co Inc
Bently Nevada Inc
Applied Control Equipment LLLP
Non-Recurring O&M Payments Total
RH outage turbine work
Harmony security wall installation
RH outage high velocity oil flush
RH outage insulation
RH outage 7x prox replacement
RH outage rebuild Fischer actuators
$4,244,836
331,474
139,380
84,396
69,272
62,124
$4,931,482
Regular Recurring O&M Payments
BNSF Railway Company
Cloud Peak Energy Resources LLC
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
Xcel Energy
Wells Fargo
Municipal Subdistrict No CO Water Conservancy Dist
Western States Power Corporation
City of Fort Collins
Clearesult Consulting, Inc.
LED Lighting Specialists
Colorado State University
Larimer County
Fort Collins Marriott
Western Electricity Coordinating Council (WECC)
Large Public Power Council
Nexant Inc/Schiller Associates
AEGIS Insurance Services Inc
Rex Oil Company Inc
Peak Reliability
Schneider Electric Software, LLC
GC3
Regular Recurring O&M Payments Total
Total O&M Payments
Coal delivery
Coal delivery
Coal delivery
Spring Canyon wind energy
Silver Sage wind energy
Medicine Bow wind energy
Yampa O&M
Purchased power (November 2015 CRSP and LAP)
Ancillary services
Pension contribution
Windy Gap carriage cost
Project E
Utility payments
Energy efficiency, DSM
Energy efficiency, DSM
Energy efficiency, DSM
Energy efficiency, DSM
Energy efficiency, DSM
2014 annual net energy for load & 2016 assessments
2016 annual dues
SAAS 3 year software agreement
Excess liability insurance premium (annual)
B20 bio-diesel
Annual dues & RTCA service fee
Avantis maintenance dues (annual)
RH chemicals
$1,254,547
824,019
262,876
650,463
224,559
63,595
1,184,688
1,888,443
409,162
243,828
112,314
174,600
61,546
75,425
70,835
61,854
57,427
51,450
140,683
66,344
75,000
435,750
86,612
251,067
63,820
53,909
$8,844,816
$13,776,298
Capital Payments
Emerson Process Management Power & Water
Electrical Power Products Inc
Dis-Tran Packaged Substations LLC
Tanco Engineering Inc
Sanity Solutions Inc
Haynes Mechanical Systems Inc
Black & Veatch
Total Capital Payments
GRAND TOTAL: PAYMENTS OF $50,000 OR MORE
RH Unit 1 DSC replacement
LaPorte substation - 230kV control/relay panels
Substation structures and equipment
RH fire water tank
Internet firewall
EO building upgrade, other mechanical engineering services
Engineering services
$528,769
405,274
370,000
95,000
86,905
75,145
61,810
$1,622,903
$15,399,201
Page 9 of 9
Page 98
Page 99
Memorandum
Date:
February 17, 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 Overview
Financing Plan
Staff and Platte River’s financial advisor, Public Financial Management (PFM), have been
preparing a financing plan for a possible advance refunding of a portion of the outstanding
Series HH Bonds and a new money transaction for capital projects. At the February Board
Meeting, staff will present an overview of the debt market and discuss the financing plan. The
plan contains the following two components:
Refund a substantial portion of the outstanding Series HH Bonds.
•
•
•
•
Total outstanding bonds available for refunding is $105.4 million.
Outstanding maturities have coupon rates of 5.0%.
Maturity dates range from 2020 through 2029.
If savings goals are met, pricing is planned to occur in April 2016.
The savings from the advance refunding is interest rate dependent, but we will proceed as
though the refunding portion will take place. Platte River will have the opportunity to include or
exclude the refunding up to 48 hours prior to pricing. Common practice for refunding is to
consider a refunding when savings are greater than 5% and greater than 50% escrow
efficiency. Based on recent estimates, the refunding metrics exceed these targets and net
present value savings are in excess of $11 million for $105 million in outstanding bonds. At the
Board meeting, more details will be provided on the potential refunding savings.
New money component to fund capital projects
•
•
•
•
Total new money portion of $60 million.
A reimbursement resolution was put in place in October of 2014 to enable Platte River
to issue bonds at a later date for up to $60 million of proceeds.
Projects from the capital plan span 2014 – 2018 for both Rawhide and transmission
improvements and are included in Platte River’s five year capital plan.
Major projects include the Rawhide Unit 1 DCS replacement, superheater tube
replacement, dust collection system upgrades, Boyd 115/230kV substation
transformer, LaPorte substation 230kV expansion, Foothills substation, and many
smaller projects.
Page 100
Current Market Indications
Market interest rates have improved since last fall. Projections provided from November 2015
for the new money component indicated an all-in True Interest Cost of 3.6% and net present
value savings from the refunding at $6.5 million. Below is a summary of financing results based
on current market conditions.
All-in True Interest Cost (TIC)
Average Life (In Years)
Final Maturity
Par Bond Issued (In Millions)
Proceeds (In Millions)
Combined Results
2.4%
10.1
2036
$152.5
$180.1
New Money
2.8%
12.4
2036
$52.6
$60.4
Refunding
2.1%
9.0
2029
$99.8
$119.7
Schedule
•
•
•
•
January – March
o Draft a Preliminary Official Statement and Notice of Sale.
o Prepare marketing documents.
o Rating Agency meetings (March).
February Board Meeting
o Update of the financing plan.
March Board Meeting
o Approval of Preliminary Official Statement, Notice of Sale, and other authorizing
resolutions.
April
o Price Bonds
o Bond Closing
o April Board Meeting – review final bond financing
Staff and Dan Hartman with PFM will be presenting the financing plan at the Board meeting as
well as providing an update on current market conditions.
Page 101
February 2016 Management Report
CORPORATE SERVICES
Safety. 2015 Safety statistics have been compiled and are shown below. As you can see, Platte River’s
safety record continues to improve. Much of the credit goes to our employees who actively focus on
safety throughout their day, and to the leadership who continue to reinforce the “safety first” message.
Recordable Incident Rate
Lost Time Case Rate
DART (Days away restricted)
2013
4.5
1.0
3.5
2014
3.5
0.5
1.0
2015
2.19
0.44
0.87
Human Resources. As previously reported, a compliance hotline was rolled out to all employees at the
February business meetings. Additionally, an updated ethics and compliance statement will be
published in the Employee Handbook, and training will be provided to all employees. The compliance
hotline simply offers one more avenue for employees to report concerns in the areas of accounting,
auditing, and financial reporting; business integrity; human resources, diversity and workplace respect;
environment, health and safety; and misuse or misappropriation of funds.
Information Technology. The focus on heightened cyber security continues, especially in light of a
recent NERC alert advising all electric utilities to maintain their vigilance. As an added layer of security
network monitoring and cyber intrusion detection services were budgeted for 2016, and will be
implemented later in the year. In addition, IT has developed a prioritized list of cyber security practices
for our business enterprise systems that we will focus on this year.
ENVIRONMENTAL SERVICES & COMPLIANCE
EPA Clean Power Plan. Implementation of the Federal Clean Power Plan was put on hold by the
Supreme Court on February 9 through a stay order. Platte River staff is monitoring this change and is
continuing to analyze the rule in order to remain prepared in case all or part of it is upheld. The State of
Colorado has announced they intend to proceed with development of a State Plan according to the
requirements and schedules included in the Clean Power Plan. Significant uncertainty surrounds this
topic, however, Platte River will continue to be engaged in the process at all levels including
participating in stakeholder meetings, assessing impact of various factors through modeling, and
commenting on issues as appropriate.
Coal Combustion Residuals (CCR) Rule Implementation. Platte River is moving forward with
compliance activities under the new EPA CCR Rule, which became effective October 19, 2015.
Additional monitoring wells are being installed in the vicinity of the Rawhide CCR landfill and the bottom
ash transfer ponds in order to assess and more closely monitor the hydrogeological conditions in the
vicinity of these features. The State of Colorado intends to update existing state regulations related to
landfills and impoundments, including adoption of the requirements of the EPA CCR rule.
Environmental Services staff is working closely with CDPHE and other utilities in a stakeholder process
to help develop these changes and ensure Platte River interests are considered.
Page 102
2015 Financial Audit. On February 1, 2016 staff from BKD, LLP began fieldwork on the 2015 year-end
financial audit. The fieldwork is expected to be completed on February 12, 2016, with a draft of the
financial report issued by March 10, 2016, and the final report issued on March 17, 2016. Rob MaCoy
from BKD will present the results of the audit at the March 2016 Board Meeting.
Critical Infrastructure Protection (CIP) Transition Status. Staff continues to work towards
transitioning to the new versions of the CIP requirements which become enforceable April 1, 2016 and
July 1, 2016. Platte River is on track and expects to be fully transitioned and compliant by that time.
Platte River is required to submit a Self-Certification stating our compliance status with the Western
Electricity Coordinating Council (WECC).
FINANCE
2015 Year End and Financial Audit. The 2015 year end books have been closed. The financial
auditors were on site in early February. As a result, the accounting staff prepared audit schedules and
were available to respond to audit inquiries.
Standard & Poor’s Rating Review. In December 2015, after completing their annual surveillance,
Standard & Poor’s Ratings published a ratings review of Platte River. Standard & Poor’s affirmed its
“AA” long-term rating and underlying rating on Platte River’s outstanding power revenue bonds. The
outlook is stable. The credit profile reflects Standard & Poor’s view of Platte River’s continued strong
debt service coverage, maintenance of strong liquidity, strong financial and operational policies,
efficient low-cost generating resources that enable Platte River to maintain a very competitive
wholesale rate, and low debt burden. However, Standard & Poor’s views that Platte River’s risks related
to increasing stringent emissions standards and Platte River’s plans to issue an additional $130 million
of bonds could put pressure on coverage metrics and increase system leverage.
Fitch Rating Review. Fitch completed their annual surveillance of Platte River in January. Since Platte
River is close to issuing new bonds, Platte River and Fitch agreed to not issue a press release at this
time, but instead issued a “Review - No Action” statement. This is standard practice for Fitch when not
issuing a formal press release. Fitch will release a formal rating and press release with Platte River’s
upcoming bond issue.
Insurance Renewals. The excess liability policy renewed with AEGIS for the December 31, 2015 to
December 31, 2016, policy period. The excess liability policy has a $1 million per occurrence deductible
and coverage limits of $35 million per occurrence; $70 million aggregate.
The property policy renewed with AIG for the January 19, 2016 to January 19, 2017, policy period. The
property policy has a $750 thousand per occurrence deductible and coverage limits per occurrence and
an aggregate of $150 million. Platte River’s property policy covers acts of terrorism.
Risk Management Review. Beginning in November 2015, Navigant Consulting, Inc. was contracted to
conduct an independent review of Platte River’s current Risk Management Plan and Enterprise Risk
Management (ERM) program. The review evaluates Platte River’s program to “best practice” ERM
standards as determined by various regulatory agencies and oversight organizations, as well as
standards specifically defined for companies across the global energy industry, and more specifically,
the public power sector. In 2016, staff will review and develop an implementation plan based on
Navigant’s recommendations.
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COMMUNICATIONS & MARKETING
Media. We worked with a reporter from the North Forty News on Platte River’s approach to managing
coal combustion residuals, arranging an interview with our subject matter experts and then correcting
errors in the initial articles. We also worked with a reporter at the Coloradoan to have corrections made
on an article that details Platte River’s resource management direction and the City of Fort Collin’s
CAP. On the social media front, our Facebook posts generated an average of 220 daily impressions.
We are working with a vendor to establish automated media monitoring report to ensure timely and
complete reporting of media mentions across all channels.
Marketing. Work on the 2015 Annual Report project is underway with initial design set. We are taking
an approach that will make the report more engaging for readers. The first draft of the Auditor’s Report
and Financial Statements are complete.
Community. Platte River sponsored a table at the Loveland Chamber of Commerce annual business
dinner. We also sponsored a table at the Larimer County Boys and Girls Club Youth of the Year
breakfast. Rawhide tours were given to the Larimer County Conservation Corps, PVREA Safety Team,
and Poudre High School advanced physics and chemistry students.
City Outreach and Collaboration. Staff presented a Resource Management update to the Longmont
utility staff and to the Fort Collins CAP Executive Team.
Efficiency WorksTM. Our work continues on a residential promotion video. Staff also updated the EW
website to improve access to rebate summaries for businesses.
OPERATIONS
Windy Gap Firming Project Update. There have been positive steps made in the past couple of
months on the firming project. Progress has been made on the permitting work, specifically with the 401
Certification (state water quality certification under the federal Clean Water Act section 401). Northern
Water met with the Colorado Department of Public Health and Environment (“CDPHE”) in late January,
and the CDPHE provided a conditional (draft) certification. This document is currently being reviewed
by Northern, and it is estimated that the final 401 Certification will be awarded by the CDPHE by March
31, 2016. The completion of the 401 Certification opens the door for the final work to be done on the
U.S. Army Corps of Engineers’ Section 404 Permit (Federal Clean Water navigable waters/wetlands
permit), which focuses on mitigation efforts. The 404 Permit cannot be completed prior to the 401
Certification, so it is anticipated that the Corps of Engineers will grant the 404 Permit by mid-2016.
Efforts are also being made with respect to project financing. In January a sub-committee was formed
to investigate the various financing options available for a project of this scope with multiple municipal
participants. Platte River representatives are participating on this sub-committee. It was determined that
a Municipal Advisor should be hired to assist with this effort, and the sub-committee has recently issued
a request for proposal (RFP) to select a vendor to perform this function.
Work is now moving forward to start the engineering design phase of the project. As mentioned in the
December Board Management Report, this phase of the project will require execution of the Fifth
Interim Agreement with Northern Water, which will require additional funding from project participants.
The specifics of this agreement are addressed in a separate memo and resolution which are included in
the February Board packet starting on page 67. The design phase will commence in March, and the
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February 2016 Management Report
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first step will be to solicit bids from engineering firms through an RFP process. The draft RFP document
is currently being reviewed by participants. Design is scheduled to continue 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.
Rawhide Water Supply Update. With the lack of Windy Gap water, Platte River is continuing to
operate in an alternate water supply mode. In this situation, leased C-BT water is being used as
collateral for in-lieu Windy Gap water to meet the critical process water needs. For the cooling water
needs, 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 at least 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. Staff will continue to monitor the water conditions and rental water
market, with the hopes of either utilizing pumped Windy Gap water if that later becomes available, or
leasing additional C-BT water later this spring. The next opportunity to pump Windy Gap water will be
the spring of 2016, although pumping will be dependent upon the C-BT system conditions at that time.
Platte River Coal Supply. On January 15, 2016, the administration announced a moratorium on new
coal leases on federal lands to allow for a comprehensive review of the program. The moratorium is
effective immediately, and is anticipated to remain in effect at least through 2016. The administration
stated that coal reserves already under federal lease can continue to be mined. Platte River staff
reached out to the mines that supply fuel for both Rawhide and the Craig station and were assured that
this moratorium will not have an impact on coal supplies for either facility in the near or intermediate
future.
PLANNING & CUSTOMER SERVICE
Next Strategic Plan. Platte River distributed its Board-approved 2016-26 Strategic Plan in December,
and made the document available via Platte River’s website. Coordination for the 2017-27 Strategic
Plan has begun; initial meetings will take place in March to engage employees in the overall process.
Like last year, the process will start with updating the SWOT analysis to assess Platte River’s current
situation and business environment. Development of goals and activities for 2017 forward will be
coordinated with the 2017 budget process.
Resource Planning Update. The Clean Power Plan continues to be the focus of much of Platte River’s
resource planning efforts. A modeling charter and schedule to assess the potential impacts of the CPP
has been developed. Platte River will evaluate two options for implementation of the CPP: (1) massbased compliance (total CO 2 tons) and, (2) rate-based compliance (CO 2 per MWh)—to determine
which option to advocate in State stakeholder proceedings. We will study the potential impacts for
Platte River, as well as evaluate potential impacts for other Colorado generators. Pace Global has been
engaged to assist in the model design, and will deliver an operating AURORA model and database for
future internal use by Platte River staff.
Energy Efficiency (EE) Programs. A total of nearly $5.2 million was spent on common efficiency
programs in 2015, with $2.4 million from Platte River and $2.8 million from the municipalities. Total
energy and demand savings are estimated as 12,900 MWh and 1.8 MW respectively (2015). Year to
date in 2016, a total of $107,000 has been spent on common efficiency programs, resulting in 360
MWh of new energy savings and 60 kW of new summer peak demand reduction. By year’s end, total
efficiency program spending is estimated to be $6.5 million, with $3.3 million from Platte River’s budget
Platte River Power Authority
4
February 2016 Management Report
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and the remainder from Municipality budgets (estimated to save over 20,000 MWh/yr and 3.6 MW). The
following table summarizes services provided during 2015 and year-to-date 2016, as well as projected
results for 2016.
Customer
Segment
Service provided
2015
Results
Commercial &
Industrial
2016
Results
YTD
0
2016
Results projected
by year end*
400
Efficiency assessments
326
Efficiency project
830
35
760
rebates
Energy savings (MWh)
11,100
360
17,600
Residential
Efficiency assessments
801
0
800
Discounted efficient
107,900
0
200,000
lighting products
Energy savings (MWh)
1,800
0
3,000
Totals
Energy savings (MWh)
12,900
360
20,600
* Projected results are based on available budgets and estimates of customer participation.
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 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. Training and presentations on the new software have been provided for Platte River, Municipal
staff and contractors/trade allies. This will allow for information sharing and system testing prior to full
launch of the system. A Software as a Service (SaaS) agreement will provide terms and conditions for
Platte River’s and the Municipalities’ staffs’ use of the software. Since Municipality staff will be using the
software, Platte River and the Municipalities will need to execute this agreement with Nexant. This
agreement has being circulated among the Municipalities’ DSM staff for review and comment, and is
now being reviewed by Nexant.
Efficiency Works Neighborhoods Pilot support. Platte River staff is supporting implementation of
Fort Collins’s Efficiency Works Neighborhoods Pilot program. This program is being funded primarily by
Fort Collins and an APPA DEED grant in an effort to offer streamlined efficiency projects for residential
customers. It is based on the Efficiency Works Homes program, which is a Common efficiency
program, funded by the four municipalities, offering residential efficiency assessments and technical
advising by CLEAResult (under contract with Platte River). The Neighborhoods pilot simplifies
completion of energy efficiency projects by providing customers with a set of recommended efficiency
improvements, as well as a list of pre-selected residential efficiency service providers who have agreed
to focus on implementing these improvements. On-bill financing options are also provided by Fort
Collins. Fort Collins is also considering adding rooftop solar as an option within the program. Platte
River and Fort Collins staffs are in discussions to consider how this could be implemented.
Demand Response (DR) Pilot Program. Work continues on implementation of Phase I of the DR Pilot
Program. Phase I includes delivery by Comverge of view-only access into Fort Collins’s IntelliSource
demand response management system. Fort Collins has executed an amendment to its services
agreement with Comverge as well as a sublicense agreement with Platte River to allow this view-only
access. Platte River’s Power System Operators have received introductory training on Demand
Response and instruction on Phase I of the pilot. Due to technical delays with the release of the latest
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February 2016 Management Report
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software version, the agreed-upon access has been delayed to begin in March. Concurrently, a work
plan has been developed to implement the SCADA updates necessary to support incorporation of
Longmont’s voltage reduction system into the pilot. Phase II of the pilot, which includes control of
selected DR resources by Platte River Operations staff and was originally scheduled to begin Q2 2016,
is now expected in Q4 2016. Platte River and municipality staff will use this time to update the software
sublicense and to develop operating procedures for Phase II.
Community Solar Pilot Program. Staff will present a status update to the Board during the February
meeting. A separate memo on this program is included in the Board packet.
Medicine Bow Wind Project Potential Sale. Commonwealth Bay, the current owner of the Medicine
Bow Wind Project, notified staff that they are in preliminary discussions with two separate potential
buyers of the Project. (Commonwealth has requested that the names of the buyers not be disclosed
publicly at this stage of discussions.) Platte River staff held a conference call with one of the buyers to
discuss the site’s history, the current structure of the power purchase agreement and the Project’s
recent performance. No definite timeline for the pending sale was discussed.
Combined Heat and Power (CHP) Study. Staff is working with the City of Fort Collins, Colorado State
University and local consultants to study the feasibility of using a CHP plant as a distributed energy
resource. Existing boilers will need to be replaced in the next few years and a CHP facility could
provide both steam and electricity for the main campus. The project supports strategic goals of CSU,
the City of Fort Collins Utilities and Platte River. The $60,000 study cost is being shared (one-third each
for CSU, the City and Platte River). A Project Charter and purchase orders have been completed and
the team will be meeting twice next month at CSU (March 1 and March 16). The consulting team will
model power, heating and cooling loads, and analyze the viability of alternatives. Constructability and
economic issues will also be considered. CSU will provide detailed historical load data to be used in the
modeling. Team review will occur through the study schedule, with the study expected to conclude this
summer (including a final report and recommendations for next steps).
Foothills Solar Project (Loveland). Loveland’s City-owned hydro generation was destroyed during the
2013 flood and the City is working with FEMA on replacing the hydro with a solar facility. The new solar
facility will be owned by the City (a FEMA requirement) so no Investment Tax Credit is available. The
system will be interconnected at distribution voltage (12.47 kV), with metering and communications to
allow system monitoring, scheduling and operations coordination. Platte River staff is working with the
City to provide direction regarding the implication of the solar installation on existing power supply
contract. Two factors are being considered: (1) Loveland using the 1% of peak “exemption” in the
power supply contract, and (2) Loveland replacing the city-owned hydro capacity with city-owned solar
capacity. There is no precedent concerning this second issue, but replacement seems reasonable
under the circumstances. Loveland’s maximum peak to date is about 160 MW, so 1% of this value
would be about 1.6 MW and the rating of the hydro is 0.9 MW (two 450 kW units). The total of these
two values is approximately 2.5 MW. Loveland is still evaluating design options for the site and solar
system, including identifying the final nameplate capacity. An update on this project and a
recommendation to formalize the maximum allowable size of this city-owned solar project will be
provided at the March Board meeting.
RESOLUTIONS & POLICY REVIEW
Windy Gap Firming Project Funding Resolution. As mentioned in the Windy Gap Firming Project
update, there is a resolution for the Fifth Interim Agreement to start the fifth phase of the project, which
will focus on engineering design. The specifics of this agreement are included in a separate memo and
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February 2016 Management Report
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resolution starting on page 67 of the packet.
Platte River Water Policy Review. Discussions on the water policy project will resume starting with
the March Board meeting. The focus for water policy efforts in 2016 will be working towards making
high level water decisions that will ultimately lead to the development of a comprehensive water policy.
The goal is to have a Board-approved Water Policy and Resolution by the end of 2016. This Water
Policy will be used to guide future Platte River water decisions. Staff is in the process of updating and
finalizing the Platte River Water Resources Reference document, which will be included in the March
Board packet. This document will serve as a refresher and will aid in discussions starting in March.
Discussions will revolve around philosophical principals and decision points. Staff will suggest some
potential approaches to this process such as holding separate meetings and involving key municipal
staff members. 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.
GENERAL & FOLLOW UP ITEMS
Fort Collins Substation Maintenance and Engineering Support Services IGA. As previously
mentioned to the Utility Directors last March during the Utility Director Services Status Updates, Platte
River is in the process of finalizing an Intergovernmental Agreement (IGA) with Fort Collins Utilities to
provide backup support for maintenance and engineering issues in case Fort Collins staff are not
available. Support will include engineering assistance for load restoration and maintenance support for
items such as transformer testing and racking distribution breakers in and out of the switchgear cubicle.
We are discussing a few remaining clarifications with the Fort Collins legal team to finalize the
document. We plan on bringing this agreement to the March Board meeting for consideration.
Rawhide Flats Solar. As anticipated, juwi sold the project assets to a third party that can take
advantage of the tax credit. Ownership of Bison Solar, the limited liability corporation that holds the
project assets, was sold to Public Service Enterprise Group (also known as Public Service Electric and
Gas out of New Jersey or PSEG). Juwi remains the Engineering, Procurement, and Construction (EPC)
contractor as well as the operations and maintenance contractor.
Equipment procurement is on schedule and a License Agreement for the interconnection should be
executed shortly. Platte River personnel are working on a variety of tasks related to facility access,
operations, control, and metering. Juwi is expecting site plan approval from the county shortly with
significant on-site work starting in February. The Platte River owned interconnection transformer is
expected to be on a newly poured pad in February.
As part of the construction phase, water is needed for dust mitigation and site compaction. Although it
wasn’t a contractual obligation for Platte River to supply this water, Platte River staff worked to acquire
the additional water needed to support this project, and will be reimbursed by juwi for the costs incurred
to procure and deliver this water. Without this water supply at Rawhide, juwi would have needed to find
water elsewhere, which most likely would have involved trucking it in from an off-site location. Being
able to provide this water directly at the construction site is a benefit from both a cost and
environmental perspective.
HQ Campus. Work continues on this project. A separate memo is included on page 111 of the packet.
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February 2016 Management Report
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Page 109
Memorandum
Date:
February 17, 2016
To:
Board of Directors
From:
Jackie A. Sargent, General Manager/CEO
John Bleem, Director of Strategic Planning and Customer Service
Paul Davis, Customer Services Manager
Subject:
Community Solar Update
Platte River and municipality staff have been meeting regularly for several months to develop potential
design elements of a “system wide” community solar pilot program (one that could serve residential
customers in all four municipalities). A single 1 MW facility is being considered, which is anticipated to
serve approximately 300 to 400 customers.
The concept behind community solar is to “provide power and/or financial benefit to multiple community
members” (NREL 1). A primary reason for considering a system wide community solar program is
growing interest from customers in the four municipalities. Other reasons include providing a means of
transitioning from net metering toward programs that provide improved allocation of cost and benefits,
improving integration of distributed solar generation into Platte River system operations, expanding joint
PRPA / municipal utility experience in delivering solar energy services and positioning for longer-term
future strategies related to distributed generation resources.
A presentation will be provided during the February Board meeting to summarize program planning to
date, and to provide a draft schedule for potential future activities. Staff will be available to answer any
questions the Board may have.
No formal action is required at this time. Funding approval for the pilot program and approval of any
agreements required for the pilot program may be requested at future meetings.
1
“A Guide to Community Shared Solar: Utility, Private, and Nonprofit Project Development”
(National Renewable Energy Laboratory – NREL).
Page 110
Page 111
Memorandum
Date:
February 17, 2016
To:
Board of Directors
From:
Jackie A. Sargent, General Manager/CEO
Karin Hollohan, Corporate Services Director
Subject:
Headquarters Campus Discussion
In December, a comprehensive presentation on the Headquarters Campus future alternatives was
shared with the Board of Directors. Staff will be prepared to discuss the consultant’s recommendation
at the February Board meeting.
There will be a presentation to help facilitate the discussion. No decision needs to be made at the
February meeting. The discussion this month will simply provide an opportunity for the Directors to
review the project status to date, and to request any additional information that might be needed in
order for the Board to effectively review this project as it moves forward.
Staff also requests that the Board hold an executive session to review property appraisal information
and for the purpose of receiving legal advice concerning the project.
Page 112
Page 113
Materials for this section will be provided separately.
Page 114
Page 115
There are no additional materials for this section.
Page 116