Mid-West Electric Consumers Association
Board Meeting
September 17-18, 2013
DoubleTree by Hilton Stapleton North
Denver, Colorado
President Roos convened the Board at 1:00 pm and determined that a Quorum was
present. The following Board members and guests were in attendance:
Name
Brad Roos
Joel Bosma
Dan O’Connor
Duane Feekes
Kent Pauling
Dale Caskey
Don Wisroth
Jack Hammond
Leo Brekel
Bruce Carlson
Vic Simmons
Bill Midcap
Lars Nygren
Claire Vigesaa
Glen Pfeifer
Dale Berndt
Dan Gliko
Doug Hardy
Richard Burud
Dean McCabe
Dorvan Solberg
Douglas Lund
James Ryken
Jeff Nelson
Bill Schwandt
Paul Neil
Lisa Meiman
Theresa Williams
Dan Walter
System
Marshall Municipal Utilities
L&O Coop
HCPD
Orange City Municipal
Northwest Iowa Power
KBR
HWE
Niobrara Electric
Highline Electric
Verendrye Electric
Rushmore
MCREA
Capital Electric Cooperative
Upper Missouri G&T
Cornhusker PPP
Panhandle REMA
Central Montana
Central Montana
Federated REA/ Nobles Coop
Upper Missouri
Mountrail Williams
Nodak Electric
East River
East River Electric
Moorhead Public Service
Dawson PPD
WAPA
WAPA
TSGT
State
Minnesota
Iowa
South Dakota
Iowa
Iowa
Nebraska
Wyoming
Wyoming
Colorado
North Dakota
South Dakota
Colorado
North Dakota
Montana
Nebraska
Nebraska
Montana
Montana
Minnesota
Montana
North Dakota
North Dakota
South Dakota
South Dakota/ Minnesota
Minnesota
Nebraska
Colorado
Colorado
Colorado
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Traci Albright
Jay Jacobson
Tim Peggram
Ron Greenhalgh
Russell Olson
Dan Payton
Nate Jones
Gary Campbell
Brad Warren
Bob Harris
Mark Gabriel
Mike McDowell
Jeff Peters
Steve Lehner
Chris VandeVenter
Scott Parsley
Thomas Graves
Rosalie Hathaway
Western –UGP
Dakota Valley
Morgan County REA
NRECA
Heartland
WSPC
Heartland
Reclamation
WAPA-RMR
WAPA
WAPA
HCPD
MRES
Watertown Municipal Utilities
Basin Electric Power Coop
East River Electric
Mid-West Electric
Mid-West Electric
Montana
North Dakota
Colorado
Virginia
South Dakota
Colorado
South Dakota
Montana
Colorado
South Dakota
South Dakota
South Dakota
North Dakota
South Dakota
Colorado
Colorado
Administrative Report: The Agenda for the September 2013 meeting was approved.
The executive session meeting minutes from the June 2013 meeting in Sylvan Lake, were
modified at the request of president Roos to more accurately reflect executive committee
responsibilities. Upon motion and second, the June 2013 minutes were approved. The 2013
quarterly Budget report was distributed to the Board for review. The 2013 audit proposed by
Dix Barrett & Stiltner was presented to the Board. Upon motion and second, Dix Barrett &
Stiltner was selected as the 2013 auditor.
Gary Campbell, Bureau of Reclamation: Mr. Campbell reviewed the status of Bureau
projects. The Colorado flooding forced Reclamation to de-energize the C-BT power plant.
Although flood waters entered the plant, the damage appears to be not as serious as first thought.
Despite both the record high flow (5300 cfs flowed over the dam compared to the 1500 cfs flow
which is considered safe) and flash flood conditions occurring simultaneously, the dams
functioned as designed. The areas of concern were Big T power plant, Dille tunnel, siphon, the
conveyance structures. However, the flood caused millions of dollars of damage. The flooding
will provide carryover water for next year that would have otherwise not been available.
Mr. Campbell alerted the Board to the Bureau’s discovery of suspicious surveillance
activity at Reclamation sites; these sites will be vigilantly monitored.
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Mr. Campbell thanked all for the upfront funding and support of the RAX projects. The
guiding philosophy at Reclamation is: on time, on budget and within project scope. In regards to
scope and budget, Reclamation’s processes of identification and accuracy of project size and cost
estimating has improved. Documentation that specifies how a cost value is determined is now
required. Additionally, the Bureau is implementing a peer review process and performance
standards for RAX projects. In summary, more time is being spent on planning and estimating to
ensure the effectiveness that the Bureau’s ‘on time, on budget, within project scope philosophy.
Mr. Campbell updated the Board on specific RAX projects. The Flatiron Unit 1 & 2
rewind project is complete and both units are commissioned and in operation. In regards to the
The Mt. Elbert Power plant rehab project, contracts were awarded for the cleaning of the
winding so that necessary testing can commence to determine whether or not it makes business
sense to have the unit rewound. May 2014 is the completion target date for in house scope and
cost estimates for the Mt Elbert rehab project, when we will be sitting down with WSPC and the
customers to finalize the project plan. Mr. Campbell reviewed the Yellowtail Rewind. A
contract for the project was awarded to NEC for $36.3 million dollars on 9/13/2013. The on-site
work at Yellow tail is to begin later this year or the start of next year. At the Fremont Canyon
Turbine units 1 and 2 runner replacements are complete and units are commissioned and in
service. Mr. Campbell updated the Board on power plant performance in FY 2013 thru August.
Overall the reliability factor was 1.38% thru July, net generation was 1917.8 GWh, and the peak
availability factor from June-August was 9-.2%.
Mr. Campbell reviewed the structure and amounts of upfront funding provided to
Reclamation by power customers for individual projects. In FY 2013, Reclamation received
$21.785 million dollars associated with 8 projects. The multi-year Fremont Canyon runner
replacement project was completed with $960K of upfront funds. Yellowtail Rewind is funded
at $15.025 million and is in progress. Mt Elbert power plant rehab is funded at $2.5 million and
is also in progress. The Estes Turbine Head Covers repair is in progress and is implementing
$1.59 million in funding.
For the FY 2014, Reclamation has requested $31.408 million dollars associated with 9
projects. Mr. Campbell noted the amount of funding requested for a few of the larger projects:

Yellowtail Rewind-$20.121 million,

Estes Turbine Head Covers Repair- $4.805 million,

Buffalo Bill Power plant Tail Race/Draft Tube Concrete Repair-$2.051 million
and

Mt. Elbert Power Plant Rehab $1 million.
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Mr. Campbell updated the Board on Reclamation activities and positions on renewables
and new hydro development. Renewables, notably wind, continue to be a top priority for the
administration. As a result, building new dams is not in the cards. However, Reclamation is
working to develop hydropower at existing Reclamation facilities. Mr. Campbell addressed HR
678- The Bureau of Reclamation Small Conduit Hydropower Development and Rural Jobs Act
that was passed by both Houses of Congress and signed into law by the president. The law gives
the Bureau of Reclamation jurisdiction –rather than FERC- for hydro development on
Reclamation owned canals. Mr. Campbell discussed key points of the law: a) pending FERC
permit requests are grandfathered in; b) hydropower authorized on Reclamation projects not
originally authorized for development; c) Lease of Power Privilege “LOPP” offered to irrigation
districts or water associations first right of refusal; and d) directs the use of categorical exclusion
(environmental issues) for these if possible. Reclamation is already fielding requests under the
new law. Mr. Campbell reported that Reclamation is developing implementation processes. Mr.
Campbell summarized the Reclamation’s three active LOPP interests. At Carter Lake, LOPP is
in place with the Northern Colorado Water Conservancy District and the facility is in operation.
Lake Granby has a preliminary permit signed on October 19, 2011 with the Northern Colorado
Water Conservancy District. Pueblo has a preliminary contract signed on February 27, 2012 with
Southeastern Colorado Water Conservancy District, Colorado Springs Utilities and the Pueblo
Board of Water Works.
Mr. Campbell updated the Board on the Grand Lake Clarity. A Grand Lake Clarity
Contract Supplement has been added to the Northern Colorado Water Conservancy District
“NCWCD” contract. This will now go into a list of items for consideration:

state water quality,

clarity of 4 meters sechi depth,

written do as best you can try to meet,

science slight improvement,

public hearing in future water quality standard,

science based outcome,

operations vs. physical fix if any,

all no reimbursable to date,

many years before any decision,

studies, base line (science based with sampling techniques),
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
evaluation of alternatives (operational and constructed fixes),

NEPA-EIS,

assuming a fix identified and picked-operational implementation,

construction- Congressional authorization required,

ability to provide input to Congress,

keep the Board in the loop with Dan Payton and Tom Graves.
Mr. Campbell then addressed the Water Transfers and Pricing Webinar. A webinar last
week included information on water transfers and urban sprawl. Mr. Campbell reported that one
effect of urban sprawl is that irrigation water is being transferred to cities. Ranchettes have been
receiving water at irrigation rate and this contributes to aid irrigation issues. Policies will
remove non- agricultural users from being eligible for aid to irrigation. These Directives and
Standards will take effect with new contracts and amendments to existing contracts. Over time
M&I rates will be higher; this takes pressure off of power to pay aid to irrigation costs. Also
market-based rates for non-project water to use federal facilities for storage. Mr. Campbell
ended his presentation to the Board by emphasizing the Reclamation philosophy: a) everything
is on time, on budget and within scope, b) Performance measures in place to ensure
accountability, c) Continue to foster relationships and work together with customers, WAPA,
WSPC and COE.
Mark Gabriel, Administrator, Western Area Power Administration: Mr. Gabriel
thanked Reclamation for its help in responding to the Colorado flooding.
He reported that the Secretary of Energy Moniz visited WAPA corporate services office - a first by a Secretary of Energy. Mr. Gabriel said that Secretary Moniz has a good
understanding of our industry and our customers. Mr. Gabriel then overviewed his meeting with
Office of Management and Budget (“OMB”), which gave OMB a better understanding of where
WAPA was heading. OMB was encouraged by the Strategic Roadmap and asset planning. Mr.
Gabriel related that WAPA is currently working on a draft of the Strategic Roadmap. Gabriel
said that extensive customer input and the survey results with written comments and statements
yielded detailed insights. Gabriel said the upshot of the survey and customer input indicated that
‘financial stability’ was of paramount concern. Jeff Nelson asked Gabriel what ‘financial
stability’ means. Jeff Nelson said that for customers financial stability means that price matters.
Doug Hardy indicated that affordability and reliability were keys to financial stability.
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Mr. Gabriel noted that there will be increasing regulation in the industry, which should be
reasonable, science-based. Board members noted that much of the new regulation is subject to
interpretation. Western should not automatically include that new regulation mean a need for
more staff or more funding.
Mr. Gabriel then asked the Board to consider what values most improve Western’s ability
to serve customers. Values such as resource prioritization among others were discussed as
candidates. Bill Schwandt noted the expanding role that NERC now plays. Dealing with the
different interpretations of what is required coupled with NERCS sometimes vague
communications is an issue that needs to be addressed. Mr. Gabriel discussed with the Board
WAPA’s goals of operational excellence with a focus on efficiency, customer partnership, and
prioritization of services. To that end, an expanded emphasis on renewables and reductions in
hydro should be expected.
Resolutions Committee Report: Bruce Carlson updated the Board on the Resolutions
Committee that met that morning. The Committee drafted a new resolution regarding Western
and will be given to the Board at tomorrows meeting.
Water & Power Committee Report: Vic Simmons updated the Board on Western’s
Asset Management Program. Simmons observed that the most critical issue was the judgments,
not the technical info. How Asser Management will be used is also a concern. Simmons said
there was some movement on the 2024Power Marketing Initiative (“PMI”).
Western Area Power Administration-RMR Update: Brad Warren showed pictures of
the flooding of the South Platte River and Sterling Substation. Mr. Warren reported that the only
structure that went down as a result of the flooding was at Greeley.
Western Area Power Administration-UGP Update: Bob Harris informed the Board
that the mainstream runoff is 91% but generation of only 75% next year. Mr. Harris then asked
the Board to consider how this will impact the power rate if generation rate is only 75% (7.9 next
year) of notmal, and next year’s rates are unchanged. Additionally, Mr. Harris noted that
decisions made at the same time next year will likely be determined by different circumstances
such as an adjustment in drought adder.
Mr. Harris reported that WAPA-UGP was still working on the East River contract and
that Rushmore’s contract was making excellent progress and should be done by the end of the
year. Mr. Harris indicated that work on an additional transmission would be undertaken.
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Mr. Harris presented to the Board Western’s Roadmap for Asset Management and
relationship to the budget plans for the next year. Mr. Harris pointed out that the preliminary 10
year capital plan would not change the MOU process and would not be the final word for budget
decisions. Mr. Harris noted that the 10 year average is $50 million a year, while the average of
the last few years is $57 million. Importantly, this analysis assumes that the age of the
equipment is not the deciding factor in determining value or replacement. Rather, judgments are
based on the performance of the equipment as measured by objective testing protocols. In light
of these considerations, the Pick Sloan’s ability to access capital was judged to be acceptable and
not in crisis.
Traci Albright, Western Area Power Administration: Albright presented the Upper
Great Plains Ten Year Capital Investment Planning Discussion. Ms. Albright said that the Ten
year plan’s assumptions are used across Western. She noted that the 10 years spending average
over roughly $50 million/ year. However, the last few years have seen spending levels of $57
million a year. Nonetheless, Pick Sloan is not facing a funding crisis for Access to Capital. Ms.
Albright encouraged the Board to integrate the 10 year plan’s principles into future deliberations,
judgments and actions.
Albright noted that although this Asset Management plan is consistent and
complimentary to important budgetary decisions and projections, it is important to note that it
does not determine budget submissions. This sort of Asset Management plan should be viewed
as a helpful, highly flexible tool. Ms. Albright indicated that the plan was started in December
2012. She then presented to the Board a graph representing the UGP Draft FY14 Ten Year
Capital Investment Plan. She noted that the relative numerical values of six types of ‘realities
and priorities’ were shown –

buildings and programmatic,

mobile and heavy equipment

communication systems

t-line investment

Substation investment- over three periods of time- 2014 thru 2016, 2016-2020,
2020-2023- .
Dan Payton, Western States Power Corporation: Mr. Payton summarized for the
Board the projects, budgetary items, and projections the Western States Power Corporation is
8
involved in. He noted that by 2014 there would be 24 members compared to the original 7
founding members in 1995.
Mr. Payton spoke to the Board about projected funding issues for FY14. By the end of
FY14, WSPC funding of federal agencies will total $550 million, much of which will have gone
toward the building or upgrade of over 60 substations, funding and partnerships for over 200
miles of transmission line, and the rewinding of many generators on the Pick-Sloan system.
He reported WSPC will provide about $63 million of a $77 million request in FY 2014.
Approximately $13 million will come from the reprogramming of past funds and $50 million in
new funding will be provided by the members. $14 million for WAPA-Upper Great Plains
(UGP) will be deferred until a future date, pending further discussions with affected customers.
UGP’s FY 2014 request was for “forward-funding” (funding of future projects that have not been
completely defined), which could not be justified at this time.
Mr. Payton reported that WSPC deferred their funding decisions until at least January
2014. He pointed to experience with the Spencer substation (Iowa) as a case in point of the
difficulties that forward funding projects entail. There, the Spencer Substation project although
funded, has been stalled by disagreements between WAPA and the members over cost-sharing,
equipment size, and engineering configurations.
Mr. Payton then updated the Board on the value of working at the local level. The Platte
Valley Voltage Conversion project in Wyoming and Nebraska was originally estimated at $21$22 million dollars approximately four years ago. The costs grew to approximately $34 million
over the past four years. By working with Tri-State engineers, WSPC negotiated with WAPA to
reduce the costs to $16-17 million. Mr. Payton reported that Western States Power Corporation,
by working closely with Tri-State’s engineers and other preference power customers, through
partnerships and cost negotiations, has been able to reduce construction costs to the WAPA
system by approximately $150 million dollars over the past five or six years.
Executive Session: Brad Roos motioned for the Board to go into executive session at
4:33p.m. Upon second the Board approved the motion and the Executive Session commenced.
Mr. Roos recognized Leo Brekel from the Organization Committee to present the report on the
proposed 2014 budget. Mr. Brekel then outlined to the Board the 2014 Proposed Budget
highlights. The proposed 2014 Budget is a 1.6% increase from the 2013 Budget. He noted that
the individual members’ dues will vary as they are determined by each member’s WAPA
purchases. Salaries in the proposed 2014 budget are illustrative; the Board will determine salary
funding levels. Transition costs have not been included in the proposed 2014 budget per the
Board’s direction. The proposed budget’s benefits costs include $16,925.88 to begin restoration
of Mid-West reserves over a ten year period. The budget does not make any changes in the Mid-
9
West benefits package. Mr. Brekel reported that the organization committee approved the
budget for submission to the full Board.
Mr. Roos asked the Board if they had any questions regarding the 2014 budget.
Thomas Graves reported that the lease for Mid-Wests office space expires in July 2014.
Mr. Graves noted that the last time the Lease was up for renewal the owners of the building
asked for a 5% increase in rent. Because there is plenty of room in the building a new lease
should be available if desired by the Board. Mr. Graves indicated that he would feel comfortable
in renewing the lease pending Board approval.
He then spoke to the Board about the Deferred Compensation program that was signed
backed in 2001. NRECA said that the Department of Labor is auditing random accounts and that
NRECA cannot find our plan. However, there would be no change if the Board re-adopt the
resolution, signs the plan documents, and pays a $750 penalty fee to the Department of Labor.
Motion, second and carried to come out of executive session at 4:48p.m.
Motion, second and carried the 2014 Budget was approved.
Motion, second and carried the refilling of the Deferred Compensation Plan was
approved.
Motion, second and carried meeting was adjourned at 5:01 p.m.
September 18, 2013
Mid-West President Brad Roos convened the Board at 8 a.m. The following Directors and
guests were present.
Name
Doug Lund
Dorvan Solberg
Dean McCabe
Richard Burud
Doug Hardy
Dan Gliko
Dale Berndt
Glen Pfeifer
Lars Nygren
Bill Midcap
Tim Peggram
Vic Simmons
System
Nodak Electric
Mountrail- Williams
Upper Missouri
Federated/Nobles
CMEPC
CMEPC
Panhandle REMA
Cornhusker PPD
Capital Electric
MCREA
MCREA
Rushmore
State
North Dakota
North Dakota
Montana
Minnesota
Montana
Montana
Nebraska
Nebraska
North Dakota
Colorado
Colorado
South Dakota
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Max Olsen
Leo Brekel
Jack Hammond
Don Wisroth
Paul Neil
Kent Pauling
Bill Schwandt
Duane Feekes
James Ryken
Dan O’Connor
Joel Bosma
Jeff Nelson
Jeff Genzer
Brad Roos
Bruce Carlson
Thomas Graves
Rosalie Hathaway
Y-W Electric
Highline Electric
Niobrara Electric
HWE
Dawson PPD
Northwest Iowa Power
Moorhead Public Service
Orange City Municipal
East River Electric
HCPD
L&O Coop
East River Electric
Mid-West Counsel
Marshall
Verendrye Electric
Mid-West Electric
Mid-West Electric
Colorado
Colorado
Wyoming
Wyoming
Nebraska
Iowa
Minnesota
Iowa
South Dakota
South Dakota
Iowa
South Dakota/Minnesota
Washington, D.C.
Minnesota
North Dakota
Colorado
Colorado
Administrative Report: Thomas Graves reported to the Board that we need a delegate
for the NRECA director election. Motion carried and second to have Bill Midcap as the voting
delegate for the October 29, 2013.
Resolution Committee: Bruce Carlson gave an update on the resolutions meeting held
the day before. Carlson reviewed a new resolution (see attached) on WAPA.
Executive Session: A motion to move to executive session was made at 8:16 a.m. Upon
second the motion was carried and the Executive Session commenced. Brad Roos motioned to
accept the resignation letter of Thomas Graves. Upon second the motion was carried and Mr.
Graves recognition letter accepted. Brad Roos then introduced to the Board Jeff Genzer who
will discuss issues of Strategic Planning. Mr. Genzer reported that two Board members have
been involved in the search committee since 1986, Paul Neil and Jack Hammond. Thomas
Graves expressed to the Board that this is a unique job that needs filling. He pointed out that the
transition package given to the Board yesterday includes a detailed agenda. Jeff Genzer also
noted that there is a transition paper included in the Boards packets. He then asked the Board
members to give their opinion on how best to find the best candidate to fill the position. The
Board expressed many thanks on having Thomas Graves as the Executive Director. The Board
discussed matters relating to the positions office location, demands, and compensation among
other things. Thomas Graves thanked the Board for all the kind words. Mr. Graves informed the
11
Board that he would be available to help Mid-West, after his retirement, should the Board so
desire.
Mr. Genzer asked the Board to discuss the location of the position and how it should be
put on the job description? Mr. Roos made a motion to keep the office in the Denver Area?
Upon second the motion to keep Mid-West’s office in Denver.
Mr. Genzer reviewed the job description, noting that the job description should include
working with Western States Power Corp, and the necessity of having a valid driver’s license.
Mr. Genzer indicated that he will incorporate the new changes with red line and receive
comments regarding the proposed changes from members. Doug Hardy made a motion to
approve of the revised job description that includes the changes agreed to in the morning session
so that the transition committee could move forward. Upon second, the motion to accept the
revised job description was approved.
Board members discussed the need for outside help in the hiring process. Some members
expressed an interest in hiring a head hunter and/or to use one of the members Human Resources
Department. Involving Duncan Weinberg in the hiring process was also discussed. In response,
Mr. Genzer told the board that it was not a good idea for him to lead the search. He then
discussed three options for the search: a) turn the search over to the search committee, b) pursue
a hybrid approach whereby you form a search committee to handle the process with an HR
department offering advice and c) do it all on your own.
Mr. Roos suggested some kind of hybrid approach. He made a motion to have search
committee draw on resources, use expertise with HR processes, and implement the talents of the
customers. Upon second the motion to adopt a hybrid approach was carried.
Mr. Roos instructed the Board to return its attention to agenda item 3 C Recommendation for a Search Committee. Mr. Roos suggested that the committee include a
representative from each member state. Additionally, input from the executive committee and
past Board presidents should be elicited. Mr. Roos informed the Board that the Transition
committee was comprised of:
 Colorado: Leo Brekel,
 South Dakota: Vic Simmons,
 Minnesota: Brad Roos,
 South Dakota: Jeff Nelson,
 Nebraska: Paul Neil,
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 Wyoming: Jack Hammond,
 North Dakota: Lars Nygren,
 Montana: Doug Hardy and
 Iowa: Duane Feekes.
Bill Midcap respectfully declined to join the search committee because December 2014
would be his last month on the Board. A motion was made to accept the Transition Committee
composition. Upon second and votes the motion to accept the Transition committee
membership was approved.
Mr. Simmons asked the members of the Board how soon should we want the new
executive director to start? Thomas Graves noted that he didn’t think having both on for a long
time is a good idea, but he was willing to consult after retirement. Simmons motioned to have a
special Board meeting in May 2014 to select the new hire. Upon second and votes the motion to
convene a special Board meeting in May 2014 was carried.
Mr. Brekel informed the Board that he will talk to Jerry Jacobson from Tri-State to see if
he would be willing help with the search process, under the hybrid model approved by the Board.
Mr. Graves suggested that the Board should select a date for the meeting in May now.
Upon motion and second and votes to select May 12, 13 and 14 in Denver for final interview (35 interviews) the motion was carried.
Mr. Roos asked the Board to express its opinion should a candidate ask for a contract. A
motion carried to not offer a contract. Motion was carried to keep the issue of offering a contract
for the position flexible and revisable. Motion not carried, but we will stay flexible on this.
The Board discussed the salary for the new executive. Mr. Graves suggested that the
salary should be based on experience. Mr. Hardy suggested that the salary should not be lower
than $180,000. Jeff Genzer asked the Board if a range of $180,000-$240,000 was acceptable.
In considering the offered salary it is important to keep in mind that a retirement package and
benefits will be an additional benefit for whoever is chosen to fill the position.
The Board discussed the budget for the transition. It was noted that there would be 100%
reimbursement for interviewers and incidentals. Additionally, there will be reimbursement for
moving expenses with allowances.
The Board discussed Benefits and Retirement. Vic Simmons indicated that there should
be no changes made in the near term. He recommended that the Board leave medical benefits as
is for now. Mr. Simmons expressed that they should revisit the specifics of the medical benefit
13
package in the future. Paul Neil suggested we move the retirement to 1.5 from the current rate of
1.9. Bruce Carlson countered that there should be no change to retirement benefits because it’s
an attractive feature of the Mid-West position that is to be filled. Doug Hardy suggested talking
to HR about this matter and that for now a flexible approach would be best. Vic Simmons asked
the Board if it was going to raise the budget or take funds come out of reserves for the transition
process? Bruce Carlson answered that the Organization Committee and the Board had already
made it clear that transition funds were to come out of Mid-West reserves.
Mr. Genzer indicated to the Board that Mr. Graves is willing to consider consulting
following his retirement. Mr. Simmons requested that an hourly fee and monthly fee for Mr.
Graves possible consulting work be determined.
Brad Roos thanked Jeff Genzer for his presentation to the Board. A motion to end the
Executive Session was introduced and upon second the motion was carried and the Executive
Session was ended at 11:09 a.m.
Dan Payton, Western States Power Corporation: As a follow up to earlier
discussions, Mr. Payton reviewed the forward funding problems experienced with modifications
at Spencer Substation (Iowa). He emphasized that WSPC members who were affected by the
project wanted to put it on hold until WAPA resolved disagreements with the members regarding
facility configuration and cost-sharing. This type of problem has become more serious because
WAPA has proposed the same type of forward-funding approach (lack of specificity on what
will be constructed) at several new substation modifications. Four of the five projects proposed
to WSPC in FY 2014 were vague in their construction plans, but WAPA said that this could be
resolved at a later date, after the projects were started. Mr. Payton did not recommend them for
funding to his Board of Directors. Further discussions will take place at future WSPC board
meetings to determine how to deal with forward-funding and its place in WSPC advances. Mr.
Payton’s perspective is that this type of proposal from WAPA is lacking in oversight from the
customers. WSPC’s Board decided to defer funding on these projects until at least the first of
January 2014 and to put Spencer Substation on hold as well until cost sharing issues could be
resolved.
Brad Roos announced to the Board that the September 2013 Board Meeting ended at
11:42 am.