Public Utility Commission

City of Fa rming ton Wa ter/Wa stewa ter ……for the regular meeting of the Public Utility Commission of the City of Farmington, Wednesday, December 11, 2013, at 3:00 pm in the Executive Conference Room at City Hall, 800 Municipal Dr., Farmington, New Mexico. I. GENERAL A. Roll Call B. Convening of Meeting by Amanda Weese, Chair C. Minutes of November 13, 2013 regular meeting submitted for approval II. BUSINESS A. Water/Wastewater Report – Jeff Smaka (5 min) ................................................. 2 B. Water/Wastewater Operations Report – Ron Rosen (5 min) ............................... 3 C. Electric Utility Dividend Policy Calculation – Sue Nipper (5 min) ....................... 4 D. System Operations Report – Rodney Romero (10 min) .......................................... 5 E. Director’s Report – Mike Sims (10 min) .................................................................... 6 III. ADJOURNMENT The next regular meeting will be on January 8, 2014 The City of Farmington will make every effort to provide reasonable accommodations for people with disabilities who wish to attend a public meeting. If you need to request that an accommodation be made, please notify the Electric Administration office (599-1160) at least 24 hours prior to the meeting.  BOARD OF PUBLIC UTILITY COMMISSIONERS The regular meeting of the CITY OF FARMINGTON BOARD OF PUBLIC UTILITY COMMISSIONERS was held Wednesday, November 13, 2013 at 3:00 p.m., in the Executive Conference Room at City Hall, 800 Municipal Dr., Farmington, New Mexico, in full conformity with the laws and ordinances of the Municipality. I. GENERAL 1. Commission members present: Amanda Weese James Spence Jeff Parkes Keith Johns Bill Standley Carol Cloer Marty Johnson Bill Hall Chris Hunter Commission members absent: Vic Eicker City personnel present: Water/Wastewater Jeff Smaka OMI/CH2MHIll Ron Rosen PUC Secretary Amy McKinley Accounting Sheree Wilson Administrative Services Director Andy Mason Utility Business Operations Susan Nipper Electric Utility Director Michael Sims Electric Transmission & Distribution Rodney Romero Electric Generation Jim McNicol Electric Engineering John Armenta Legal Jay Burnham Customer Service Nicki Parks 2. Chairman Weese called the meeting to order with a quorum present to conduct the business of the Commission. 3. Commissioner Standley made a motion to approve the October 9, 2013 PUC Commission meeting minutes which was seconded by Commissioner Cloer. The motion passed unanimously. II. BUSINESS 1. Quarterly Financial Report: Mr. Mason detailed the quarterly financial report for the first quarter of Fiscal Year 2014. Mr. Mason stated the Electric Utility’s net income increased by $1 million from FY13. Mr. Mason reported the operating revenue was about $2 million higher. Mr. Mason stated electric sales were up $1.9 million; mainly due to $2.4 million increase in the PCA and offset with lower sales to industrial customers of $570 thousand. Mr. Mason reported surplus sales had a slight increase of $6 thousand. Mr. Mason stated other revenues were up $77 thousand, with increases in auction proceeds and fiber optic leasing. Mr. Mason stated operating expenses were $950 thousand more than last year. Mr. Mason reported that purchase power increased $1.2 million. Mr. Mason stated that natural gas costs decreased $767 thousand and coal costs had a small increase of $43 thousand. Mr. Mason stated salary and benefits were $298 thousand higher. Mr. Mason reported other expenses decreased by $41 thousand. Mr. Mason reported non-operating revenues were up by $170 thousand and expenses also increased by $166 thousand. -1-  Mr. Mason reported the Water Utility’s operating revenues were $281 thousand less than last year. Mr. Mason stated water sales were down $286 thousand. Mr. Mason stated the renewal/replacement fees increased $7 thousand, while the water rights acquisition fee had a slight decrease of nearly $2 thousand. Mr. Mason reported operating expenses increased $87 thousand. Mr. Mason stated the OMI contract had an increase of nearly $38 thousand. Mr. Mason reported salaries and benefits was lower by $4 thousand. Mr. Mason reported other operating also had a decrease of $66 thousand. Mr. Mason stated depreciation expenses increased $119 thousand. Mr. Mason reported non-operating revenues were lower by about $3 thousand. Mr. Mason reported non-operating expenses were also lower, by $13 thousand. Mr. Mason stated the net income for the Water Utility decreased by $358 thousand from the prior year. Mr. Mason reported the Wastewater Utility’s net income was $150 thousand lower than FY13. Mr. Mason stated operating revenues were higher by $48 thousand from last year. Mr. Mason reported wastewater sales and renewal/replacement fees were increased a combined $53 thousand and environmental taxes decreased almost $5 thousand. Mr. Mason reported operating expenses increased $202 thousand over FY13. Mr. Mason reported the OMI contract increased $89 thousand and other operating expenses increased $107 thousand. Mr. Mason reported salaries and benefits along with depreciation had slight increases. Mr. Mason stated non-operating revenues had a small increase of $1 thousand. Mr. Mason stated non-operating expenses increased almost $2 thousand. Mr. Mason reported that from September 2012 to September 2013, the cash balance changes for the Electric, Water, and Wastewater funds were $(7,531,488), $1,758,211, and $377,378 respectively. Mr. Mason reported for the 1st quarter of FY14, the cash balance changes for the three utilities were $2,001,903, $1,787,600, and $(199,980). Commissioner Hunter requested that a percentage column be added to the spreadsheets to more easily view the financial increases/decreases between the fiscal years. Mr. Mason stated he would work on inserting this information. Vice Chair Spence observed that the Other Revenue dollars vary significantly from fiscal year to fiscal year and asked why these dollars vary so dramatically from year to year. Ms. Wilson stated the Other Revenue category encompasses a variety of things such as auction revenues and fiber optic leasing dollars. 2. Water/Wastewater Report: Mr. Smaka reported that HDR Engineering has submitted the design drawings for the Waste Water Treatment Plant (WWTP) upgrades. Mr. Smaka stated staff is reviewing the layout and design flow capacity of the proposed improvements. Mr. Smaka reported on the construction of the Medium Rate Activated Sludge (MRAS) basin detailed in the 2014 budget to provide redundancy at the WWTP and maintain compliance with EPA permit. Mr. Smaka reported the NMED approved funding the waste water treatment plant upgrade in the amount of $10,000,000 through the Clean Water State Revolving Loan Fund (CWSRF) program. Commissioner Parkes asked if the $10 million loan from NMED is the projected total cost of the project. Mr. Smaka stated it is the total estimated cost of the project. Mr. Smaka updated the Commission on the status of the Meter Replacement project. Mr. Smaka reported Staff is reworking the project to purchase water meters only and is working with OMI CH2MHill for a cost to do the water meter installation. 3. Water/Wastewater Operations Report: Mr. Rosen, OMI CH2MHill, reported on the Water/Wastewater Operation activities for October. Mr. Rosen stated staff is continuing to work with customers to encourage reduction of the use of salt. Mr. Rosen stated that at the request of the EPA to encourage voluntary compliance with EPA requirements, letters were sent out to the various area car wash owners encouraging the reduction of the use of salt. Commissioner Weese asked if any car wash owners had responded to the letters. Mr. Rosen stated that some of the car wash representatives have contacted his office. -2-  Commissioner Cloer asked if there has been any cost analysis performed that would demonstrate how these EPA requirements will affect business owners financially. Mr. Rosen stated there is information that demonstrates the cost savings by not having to purchase so much salt. Commissioner Larsen asked if there is no silver bullet that would solve the salt problem. Mr. Rosen stated there are various ways to solve the salt problem, but the cost is very high. 5. Director’s Report Mr. Sims reported the new rate structure and associated tariffs went into effect on November 1, 2013. Mr. Sims stated the Bluffview Power Plant continues to be off line due to the inlet air heater project. Mr. Sims stated this project has not been completed to the Utility’s satisfaction and staff is working with the manufacturer to get the system to work as it was designed to work. Mr. Sims stated staff is moving in several different directions, potentially even away from the manufacturer, to get this unit up and running. Mr. Sims stated the Animas Power Plant is on line and available for full load. III. ADJOURNMENT There being no further business to come before the Commission, upon motion duly made and seconded, the meeting was adjourned. The meeting was adjourned at 4:08 p.m. Approved this 11th day of December, 2013. Amanda Weese, Commission Chair -3-  : Water &Wastewater Title: Public Works Director 2013 PUC Meetin Date: 10 December 13 • Waste Water Treatment Plant. Phase III Design - HDR Engineering has submitted the design drawings for the plant upgrades. Staff is reviewing the layout and design flow capacity of the proposed improvements. Construction of Medium Rate Activated Sludge (MRAS) basin in 2014 budget to provide redundancy at the WWTP and maintain compliance with EPA permit. NMED approved funding the waste water treatment plant upgrade in the amount of $10,000,000 through the Clean Water State Revolving Loan Fund (CWSRF) program. • 0& M Contract. The current 8 year Operation and Maintenance Contract with CH2MHILL OMI expires on Dec 31, 2015. • Utility Rates. Red Oak Consulting working on the rate study. • On-Call Engineering Service Contract. o 2P Waterline Project HDR has submitted 90% design drawings. City Council included this project in the City's Infrastructure Capital Improvement Plan submitted to the state ­ estimated cost six million dollars. o LaPlata Highway - Project design for water line replacement completed by City staff. Awaiting permit approval; will be scheduled pending approval of NMDOT permit. • Capital Project Review. o Capital Improvement Project • Meter Replacement - NMED: Drinking Water State Revolving Loan Fund Program. Loan amount $5,959,000. The plans and specifications approved by NMFA and NMED. Staff is reworking project to purchase water meters only and we are working with CH2N1Hill-OIVlI for a cost to do water meter installation. o Renewal and Replacement rd • 23 Street Project rd th • Phase 4 Santiago - 23 St to 25 St - Summer 2014 • Wildflower Parkway - 4P pump station - Working on acquiring property for pump station. Budgeting for the construction of new pump station FY14. th • Municipal Drive Replace existing 24" steel waterline from 1C tank to 20 Street with a 24" PVC waterline. - completed • Knollcrest Dr Windsor to Kingsway - Replace existing 6" CI waterline with an 8"PVC waterline completed • Holiday Dr Windsor to Kingsway - Replace existing 6" CI waterline with an 8"PVC waterline - completed • Blake St - Main to Apache - Replace existing 6" CI waterline with an 8"PVC waterline Spring 2014 th • 20 St - Municipal to Sunset - Replace existing 24" and 16" steel waterline Street with a 24" PVC and 16" PVC waterline. - Summer 2014 • o Pressure Reducing Valve (PRV) • PRV installation at Main Street and Gila Street - Construction 2013 • PRV installation at Main Street and Red Lobster - Construction 2013 • o Sewer Main Extension • Brehend Ave Apache St to Comanche St Replace existing 6" clay sewer line with 8" PVC sewer line. - completed • Lift Station 5 Improvements - RMCI of Albuquerque - Rehab of the existing lift station which includes the mechanical, pumping equipment and electrical systems of lift station 5. Notice to Proceed for July 22 - Phase 1 of the project is the reconstruction of the wet well, replacement of the piping and mechanical system. Phase 1 is 98% complete, Lift Station is back in operation:: Phase 2 - Electrical submittals are being reviewed by HDR Engineering Inc. - Notice to Proceed will be issued once submittals are ~n,.rn'''Qrt  • Lift Station 3 Improvements - HDR Engineering is designing the rehab of the existing lift station which includes the mechanical, pumping equipment and electrical systems. Design to be completed spring 2014. Construction summer 2014. • Operational Review. • Human Resource Issues. Job evaluations. • Positions none • Budget. - FY14 • COF Department Support. Survey support to acquire manhole data for future sewer collection system model continues • Annual Utility Contract. - Annual utilities contract awarded to TRC Construction by City Council th on August 6 • Federal Funding ­ o Water Projects - Meter Replacement Project • City Council to approved final loan application to New Mexico Finance Authority (NMFA) -loan documents completed in January 2013. o Wastewater Projects - submitting for funding in 2014 ­ • WWTP - MRAS Basin, Final Clarifier, Solids Handling Facility & UV Disinfection - Estimated Cost $10,000,000 - NMED funding source is the Clean Water State Revolving Loan Fund (CWSRF) Program - Project approved by NIVIED, on Nov 5 City Council approved permission to draft ordinance as required by NMED for loan. Michael Groshek with Sherman and Howard is drafting ordinance for the proposed project. • Farmington Reach - Navajo Municipal Pipeline. o Working with Bureau of Reclamation and Navajo Tribe for agreements to transfer title to the City for the tank and pipeline project along with an Operation, Maintenance and Replacement (OM&R) agreement as required by Federal law - March 2009. • WWTP NPDES PERMIT - EPA. City has received the EPA final permit. New permit went into effect on l\Jovember 1,2010, permit expires October 31,2015. - City staff and OMI are reviewing the permit regarding Total Dissolved Solids (TDS) limits 400mg/1 requirement. On July 19, 2013 the City received an Administrative Order (AO) from EPA Region 6 which specifies the activities the City is to accomplish along with due dates for each activity, these tasks and due dates correspond to those proposed in the City's letter to EPA. After each task is completed as outlined in the AO a written report for that completed task is due to EPA Region 6. • Snowpack - Water Year 2013 - BOR reporting site down • Animas River Basin - 118% • San River basin - 118% ATTACHMENTS WATER FUND (602) -RENEWAL & REPLACEMENT WASTEWATER FUND (603) - RENEWAL & REPLACEMENT GRAPH WATER REVENUE FY 10 - FY14 -2.1­  WATER Renewal & Replacement Water Fund - 602 FY10 FY11 ........ FY12 FY13 FY14 .... FY14 REVENUES Actual Actual Actual ....... Actual Y-T·D Budget 1 Renewal/Replacement Fee $1,733,666 $1,943,342 $2,018,436 $2,037,806 $710,021 $2,082,909 I 1 ~------------~- ------­ -----­ ------­ --­ - STATE GRANT - $825,000 REVENUE TODATE ~$11,525,254 PROJECTED REVENUE FY07 • FY14 $13,608,163 ... FY10 FY11 ...... FY12 FY13 FY14 ... FY14 ...................... Actual········ Actual Actual Y·T·D Budget ,..... Actuai EXPENDITURES 1602-5543 RENEW AUREPLACEMENT 1651 .70-60 Construction $1,375,293 $1,518,581 $1,706,469 $2,278;859 $1,075.466 1 -­ -. _.. ----­ - ..­ ----­ -­ - -­ Largo & Main PRV 'estimated $150,000 20th St· Red Lobster PRV estimated $150,000 Knollcrest Dr • Windsor to Kingsway estimated $200,000 Holiday Dr Windsor to KingsWay estimated $150,000 Troy King Piedras south to US 64 estimated $500,000. 20th St • Municipaito Sunset' estimated $7(0))00' Behrend· Apache to Commanche estimated $80,000, Coyote Drive· LaPlataHWytoend estimated $70,000' Blake St • Main to Apache 'estimated $100,000 Foothills Dr • Hill & Dale to Main St estimated $700,000: NCourtAv • Apache to Shiprock estimated $250;iioo schwartz· Broadway to Animas estimated $95,000 Northwood .. estimated $100,000 'Polyli~~~Elrvice Replacement eStimated $100,000. Fire Hydrant 1950 Replacement estimated $100,000: $3,445,000, PROJECTED EXPENDITURES FY07 • FY14 $13,215!~65 WATER RENEWAL & REPLACEMENT $2,500.000 $2,000,000 rn 0:: $1,500,000 « ...I ...I o $1,000,000 o $500,000 $0 Actual Actual Actual Actual Y-T-D FY10 FY11 FY12 FYB FY14 FISCAL YEAR -2.2­  WASTEWATER Renewal & Replacement Wastewater Fund - 603 ..... I···· FY10 FY11 FY12 : ..... FY13 FY14 ....... FY14 REVENUES Actual Actual .~ ,~ Actual Actual Y-T-D .-~ Budget Charges for Utility Seruces I I Renewal fReplacement Fee $1,229,258 $1,385,827 $1,436,494 $1,441,591 $492,124 $1,494,391 I I -- -- ____w ---- .-.-- -- - - ­ /Y REVENUE TODATE $7,476,563 PROJECTED REVENUE FY07 - FY14 . '$8,970,954 FY10 FY11 FY12 FY13 .. FY14 FY14 Actual Actual Actual Actual Y~T-D Budget I I EXPENDITURES 603-5543 RENEWAL/REPLACEMENT 751_70-60 $501,814 $605,311 $1,257,531 $~ Construction $685,848 - - "" ­ - -------- - Subtotal Capital $592,933 $1,152,988 $501,814 $685,848 $605,311 $1,257,531 Projects FY07- FY13 $4,364,995 Lift Station #5 Rehab $915,000i MRAS Basin $1,000,000: Lift Station # 3 Rehab $~goA60' Sewer Rehab $750,000 Scrubber Reha b $250,666; ­ "lVIanh()!E1Rehab $150.000~ "lVIllilllineRehab $300,000; PROJECTED EXPENDITURES FY07 - FY14 cFY10 mFY11 Total Water Revenue Per Month mFY12 FY10 - FY14 .FY 13 ,.FY 14 2,000,000 1,800,000 1,,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN  2013 •• 2014 •• Actual Actual JUL 1,1 1, 1,657,429 AUG 1, ,254 1,303,558 1,165,141 1,725,060 1,196,227 1,495,029 SEP 1,290,632 1,107,254 1,330,247 1,165,141 1,362,607 1,196,227 1,349,906 OCT 1,010,908 1,107,254 1,110,501 1,165,i41 1,338,557 1,196,227 1,123,250 NOV 735,252 1,107,254 886,031 1,165,141 936,091 1,196,227 DEC 1,067,568 791,478 1,107,254 810,541 1,165,141 839,767 1,196,227 JAN 1,067,568 760,713 {107,254·· 835,520 1,165,141 85(542 1,196,227 FEB 1,067,568 740,561 ···1,107,254 838,187 1,165,141 401,518 1,196,227 MAR 1,067,568 727,418 1,107,254 824,263 1,165,141 788,759 1,196,227 APR 1,067,568 889,702 .... 1,107,254 951,749 1,165,141. 958,767 1,196,227 MAY 1,067,568 1,099,110 1,107,254 1,116,639 1,165,141 1,194,193 1,196,227 JUN 1,067,568 1,521,671 1,107,254 1,425,556 1,165,141 1,520,186 1, 22rn7;;-_ _---1 TOTAL: REVENUE PER CLASS/CUSTOMERS FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual R 5,901,722 5,742,019 6,338,837 5,962,727 6,275,000 6,509,749 6,481,728 6,464,202 6,676,180 2,669,363 GS 3,400,119 2;923;899 3,294,004 3,081,024 3,458,704 3,441,527 3,447,238 3,107,129 3,550,655 1,543,157 CU 1,247,750 994,443 1,062,666 1,118,738 1,117,925 1,096,582 1,129,104 1,123,093 1,151,686 380,390 REC 212,000 205,146 227,751 217,349 210,000 264,281 225,000 264,196 250,000 120,650 FH 92,225 80,933 96,793 89,526 125,000 112,642 118,750 76,419 118,750 48,763 R&R 1,419,550 1,733,666 1,744,954 1,943,342 1,910,000 2,018,437 2,055,322 2,037,805 2,082,909 710,021 GRANTS I 10,821,688 5,814,967 3,226,226 1,292,048 500,000 284,788 - 2,510 I OTHER 537,453 630,069 1,740,218 1,720,237 1,018,114. 747,207 I 524,552 2,595,398 524,552 153,270 TOTAL: 23,632,507 18,125,142 17,731,449 15,424,991 14,614,743 14,475,213 13,981,694 15,670,752 14,354,7321 5,625,614 SCHEDULE OF CUSTOMERS R Residential GS General Service, Single (commerical CU Contract Users (bulk water users) REC Recreational/Raw WaterWater Users (city facilities and FH Fire Hydrants R&R Renewal & Replacement OTHER Miscellaneous -2.4­ Monthly Activity Report November 2013 Prepared for City of Farmington, Public Utility Commission ADMINSTRATION OPERATIONS Safety Training and Incidences as of 11-30-13 TAILGATE TOPICS NOV 2013 YTD Total Safety Training Hours 111.7 1982.85 Incidences/accidents 0 4 Motor Vehicle Incidences/accidents 1 2 DELIVERABLES FOR DISTRIBUTION & COLLECTION SYSTEM Deliverables as of 11-30-13 TASK TARGET YTD % COMPLETED Pressure Regulator Inspection 57 39 68% Valve Exercise 4895 4576 93% Storm Drain Cleaning 678 900 133% Dead End Main Flushing 492 492 100% Sewer Main Cleaning 6" - 24" 307560 259737 84% Sewer Main Cleaning 24" - UP 9800 10965 112% Sewer Main Video Inspection 184800 149468 81% Fire Hydrant Inspection 2565 2593 101% Air Relief Valve Inspection 147 149 101% Permaloggers 100 100 100% Water breaks as of 11-30-13 NOV 2013 YEAR-TO-DATE Main line breaks 8 Main line breaks 44 Service line breaks 7 Service line breaks *153 Total 15 Total 197 *YTD totals adjusted to reflect remaining October totals. Two additional water service lines added for October 2013. Estimated water loss for November => 93,530 (gallons) New Meters and New Sewer Taps as of 11-30-13 NOV 2013 YEAR-TO-DATE NEW METERS 1 94 SEWER TAP 2 76 WATER TREATMENT OPERATIONS Farmington Lake Elevations – Monthly Average Comparison for 2012 to 2013 5638.00 2013 E 5636.00 l 5634.00 2012 e v 5632.00 a t 5630.00 i 5628.00 o n 5626.00 5624.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 2012 5630.95 5628.25 5628.85 5631.63 5634.98 5635.69 5633.96 5630.78 5628.70 5628.71 5633.28 2013 5634.68 5633.63 5634.58 5634.77 5635.02 5635.46 5634.28 5633.85 5634.88 5635.92 5635.96 Water Treatment Plants – Total Effluent to System Comparison for 2012 to 2013 700 600 500 Gallons (Millions) 400 2012 300 200 2013 100 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 2012 242.566 234.059 269.349 375.305 510.642 598.929 578.981 557.870 451.947 364.366 253.024 2013 257.025 218.347 258.694 329.580 414.543 531.199 573.921 495.340 375.268 291.420 231.239 2012 2013 WASTEWATER TREATMENT OPERATIONS FLOW 6.00 5.50 5.00 4.50 4.00 3.50 MGD 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec INF 5.38 5.28 5.19 5.52 5.53 5.69 5.69 5.62 0.00 5.22 5.12 EFF 4.82 4.73 4.68 5.01 4.97 5.18 5.31 5.42 5.46 4.89 4.64 LIMIT 6.67 6.67 6.67 6.67 6.67 6.67 6.67 6.67 6.67 6.67 6.67 6.67 Final Effluent Total Flow [MG] 120.55 Final Effluent Average Flow [MG] 4.64 Total Number Septic Trucks 432 Total Gallons Septic Trucks 453201 PRETREATMENT ACTIVITES Completed 92% of the oil and sand separator inspections. Completed Industrial Pretreatment Program annual inspections at Halliburton, Alsco, and San Juan Regional Medical Center. Drafted a letter to the food establishments on using best management practices for preventing grease from entering the collection system. Also working with them on water softener settings. Working with a laundry facility to permit them as an industrial user. Working with Wal-Mart to be in compliance on the grease interceptor.  Acronyms and Abbreviations CM Corrective Maintenance CMMS Computerized Maintenance Management System gpd Gallons per day gpm Gallons per minute hp Horsepower mg millions of gallons mg/L Milligrams per liter mgd Million gallons per day NMED New Mexico Environment Department NPDES National Pollutant Discharge Elimination System O&M Operation and Maintenance OMI Operations Management International OOS Out of Service PdM Predictive Maintenance PM Preventive Maintenance ppm Parts per Million PRV Pressure Reducing Valves PRVs Pressure Reduced Valves QA/QC Quality Assurance/Quality Control SCADA Supervisory Control and Data Acquisition SMP Standard Maintenance Plan SOP Standard Operating Procedure TTHMs Trihalomethanes USEPA U.S. Environmental Protection Agency WEP Work Execution Plan WWTP Wastewater Treatment Plant PUC – December 11, 2013 FEUS System Operations Report System Control Total EMS/SCADA Primary and Backup Control Center system replacement. Last replacement 2009; issues with software support, obsolete hardware issues. New system incorporates new system features; • Automated failover between primary and backup centers. • Quality assurance processes (test bed) to comply with NERC/CIP. • System Operator simulator training tools. • Automated real time electric system state estimator. In service new UPS dual failover power distribution system for Primary and Backup Control Centers. Transmission/Distribution MOC west expansion project; Transmission maintenance bay Training room Administrative areas Vehicle parking canopy Bloomfield 2302 outages; Circuit on hot-line tag (non-reclosing) -5-  November 2013 Monthly Electric Report Administration 1. Initial discussions have begun for the development of a 5 year strategic plan for the electric utility with implementation scheduled for the beginning of FY15. Business Operations 1. NMMEAA board meetings – annual distribution to City was $1,311,699.14 in gas savings; discussed possible restructuring of the prepayment arrangement. 2. Donna Drinen is retiring in December and Cloey Harrison has been promoted to the Engineering Support Supervisor position. Customer Care 1. Reviewed rate changes in system for accuracy. 2. Continued work on creating an Electric Utility newsletter. 3. Analyzing bank fees for credit card payments to minimize cost to utility; also meeting with bank regarding bill processing issues. 4. Collections-173 evaluated, 87 of these collected on -86 accounts currently being worked. 5. 127 LIHEAP payments received. Compliance – NERC/WECC, Environmental, Safety: 1. Operations and Planning Audit Nov 4-15, 3013: Concluded with no findings 2. Annual Compliance Certification for the Bluffview plant Title V Permit 3. Animas and Bluffview National Pollutant Discharge Elimination System (NPDES) project (Kiewit) work (plans for NPDES permitted discharge to the rivers) completed. Engineering: 1. Construction for widening State Highway 64 west of Bloomfield has begun. 2. Visual Inspection Contract has been awarded to MRB Technical Services based in Grants, NM for inspection of selected transmission system lines. Work is scheduled to be complete by December 20. 3. Field work is complete for a distribution line river crossing south of Highway 371 near the confluence of the Animas and San Juan Rivers. Transmission and Distribution: Construction/Maintenance: 1. New 3-phase underground to Path Home has been completed 2. 5500 feet of single phase line in the Largo Canyon area has been completed for Energen. 3. Middle Mesa line conversion is 45% complete. San Juan 2401 line rebuild is 50% complete 4. Maintenance crews replacing damage cross arms, insulators and anchors on Pine River circuit 4701. 5. Contract crews completed 69kv pole change out in Bloomfield area 6. Contract tree crews completed trimming work on all three phase and single phase distribution lines at Middle Mesa. Relay/Meter: 1. Continuing rebuild work at Fruitland Substation. 2. Assisting in EMS/SCADA system replacement. 3. Starting on-site verifications of active accounts with no usage. 4. Continuing meter verifications on Lakeview substation circuits. Generation: 1. APP and BV cooling tower capital projects completed. 2. On-going BV anti-icing system commissioning and GE re-design in progress. Retained independent engineering services (Black & Veatch) and installed temporary electric heating system. 3. Issued approval for Canyon Hydro to move to fabrication stage of new Navajo runner manufacture/ installation contract. 4. On-going SJGS Global Settlement Group conference calls attended. Fuel Sales & Purchases: 1. Bluffview total estimated gas sale – 305,600 mmbtu. Control Center: 1. Beginning replacement of EMS/SCADA master station. 2. Completion of WECC/NERC audits and have implemented improvements. System Outages: 1. Bloomfield circuit 2302 had three separate outages during the month. First outage was due to customer heavy equipment with extended boom snagged line, Second outage line patrolled no obvious indication of fault, Third outage was due to damaged phase conductor which failed during replacement of bad pole anchor. Total circuit outage time; 2 hours & 45 minutes, total customers were 1505. Operating Statistics: Animas Plant MWh: 14,937 Bluffview Plant MWh: 0 Navajo Plant MWh: 0 San Juan Plant MWh: 18,632 WAPA MWh: 9,057 Purchase MWh: 43,145 Average Purchase Price: $ 40.40 /MW Purchased Power cost: $ 1,743,222 Peak Demand MWh: 144 incr(decr): (7.69)% Monthly System Energy MWh: 87,161 incr(decr): (8.05)%