Public Utility Commission

BOARD OF PUBLIC UTILITY COMMISSIONERS The special meeting of the CITY OF FARMINGTON BOARD OF PUBLIC UTILITY COMMISSIONERS was held Wednesday, August 13, 2014 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 Tory Larsen Marty Johnson Bill Hall Keith Johns Bill Standley Commission members absent: Jeff Parkes Carol Cloer Chris Hunter City Council Liaison: Gayla McCulloch City personnel present: Water/Wastewater JeffSmaka PUC Secretary Amy McKinley Utility Business Operations Susan Nipper Electric Transmission & Distribution Rodney Romero Electric Generation Jim McNicol Electric Engineering John Armenta Administrative Services Andy Mason Accounting Sheree Wilson Legal Jennifer Breakell Guests: Compliance Linda Jacobson-Quinn Safety Ryan Briggs Public Works Paul Montoia 2. Chair Weese called the meeting to order at 3:00 PM with a quorum present to conduct the business of the Commission. 3. The Minutes of the July 9, 2014 regular meeting were approved as circulated. II. BUSINESS 1. Financial Report: Mr. Mason presented the financial reports of the Electric, Water and Wastewater utilities for the fiscal year ending June 30, 2014. Mr. Mason stated the year to date net income for the Electric Utility was approximately $8.9 million which is a reduction of $3.6 million from the previous year. Mr. Mason reported that Operating revenues decreased by $601 thousand and Operating expenses increased $3.7 million. Mr. Mason presented an overview Df th~ FY2014 financials for tl}e Water Utility. Mr. Mason stated that the water utility's net income for FY2014 saw a decrease of $2.8 million compared to FY2013. Mr. Mason stated that water sales were down $292,000 in FY~014 and operating expenses increased by $504,000. - 1­  CO,"""" .•.",,",,"_.,""-....._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _"""'" Mr. Mason detailed the financial statement for the Wastewater utility for FY20l4. Mr. Mason reported that the Wastewater utility's net income decreased by $318 thousand over the previous year; operating revenues were higher by $143 thousand and operating expenses were also higher by $276 thousand. Mr. Mason reported that non-operating revenues were down by $197 thousand, due to less capital contribution from FY2013 and non operating expenses also decreased by $12 thousand. 2. Compliance/Safety Report: Ms. Linda Jacobson-Quinn, Regulatory Compliance Manager, offered a presentation to the Commission which briefly outlined the responsibilities of the Compliance Division and offered a brief overview of the many Critical Infrastructure Protection (CIP) standards which are requirements that carry Federal Energy Regulatory Commission (FERC) regulatory enforcement and are administered by the North American Electric Reliability Corporation (NERC). Ms. Jacobson-Quinn stated the utility is in the Western Electric Coordinating Council (WECC) reliability area and NERC standards are monitored by WECC. General discussion ensued regarding the various regulatory requirements of the utility. 3. Request for a Recommendation to the City Council for the Approval of proposed Agreement between the City and Farmers Irrigation District for delivery of raw water to Farmington Lake by the Farmers Irrigation District Mr. Smaka presented to the Commission a proposed Agreement between the City of Farmington and Farmers Irrigation District for delivery of raw water to Farmington Lake by the Farmers Irrigation District. Mr. Smaka stated the new agreement is for a term of20 years thru December 31,2033. Commissioners generally discussed the details of the proposed Agreement. Commissioner Johns made a motion to recommend approval by the City Council of the proposed Agreement between the City of Farmington and Farmers Irrigation District for delivery of raw water to Farmington Lake by the Farmers Irrigation District. Commissioner Johnson seconded the motion and the motion passed unanimously. 4. Water/Wastewater Report: Mr. Smaka reported on various water and wastewater projects in progress throughout the city during the month of July. No discussion took place regarding the WaterlWastewater monthly report. 5. Water/Wastewater Operations Report: Mr. Smaka presented the Water/Wastewater Operations report for the month of July. The Commission offered no comments. 6. Electric Utility Report: Ms. Nipper presented the Electric Utility Report for the month of July and year to date. No discussion occurred regarding this report. 5. Director's Report: Mr. Sims presented the Director's Report which details the various project and other operations of the utility. Mr. Sims stated the prepay discount agreement through NMMEAA has been finalized and the discount was determined to be $0.2894IMMBtu, which is a much better discount than was first discussed. -2­ -------------------------------------- ,-----" -" , Mr. Sims reviewed the Safety statistics listed in the monthly report. Mr. Sims asked Mr. Ryan Briggs, Safety and Security Officer, to briefly explain the year-to-date Safety Incident numbers detailed in the monthly report. Mr. Briggs is the Safety Officer for the City of Farmington, as well as for the Electric Utility. Mr. Briggs detailed the safety incident numbers for the Electric Utility; 9 OSHA recordable incidents, and the utility has worked approximately 212,000 hours this calendar year. Mr. Briggs stated the year to date Total Recordable Incident Rate (TRIR) calculation for the utility is 2.8. Mr. Briggs explained that this 2.8 figure indicates how many employees per 100 are involved in an incident significant enough to be recorded under the OSHA guidelines. Mr. Sims stated that to avoid confusion in future reports, the Safety statistical numbers for the Electric Utility will be separate from the city-wide statistical numbers. Mr. Sims reported on potential customers that plan to bring large load amounts to the utility. Mr. Sims informed the Commission that Kiewit Construction has been awarded the contract for the outfall system construction at the Bluffview plant. Mr. Sims stated that GE has agreed to provide the utility a credit in the amount of $279 thousand as settlement for the heater rental costs the utility incurred as a result of the GE design problems at the Bluffview plant. 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 4:34 p.m. a(~~~~/ ~;/(7~~. Approved this 10th day of September, 2014. (, ,. ... ")j v~ Amanda Weese, Chair -3­