Shawano Municipal Utilities Commission

SHAWANO MUNICIPAL UTILITIES COMMISSION AGENDA MONDAY, JANUARY 9, 2023 4:00 PM SHAWANO CITY HALL, 122 N. SAWYER STREET, SHAWANO, WI I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. APPROVAL OF PREVIOUS COMMISSION MINUTES A. December 5 B. December 12 V. CUSTOMER COMMENTS A. Compliments B. Concerns VI. SAFETY REPORT VII. OPERATIONS REPORT A. FINANCE 1. Rate of Return 2. Statement of Net Position – Electric 3. Statement of Net Position – Technology 4. Statement of Revenues, Expenses & Changes in Net Position – Electric 5. Statement of Revenues, Expenses & Changes in Net Position – Technology 6. Schedule of Operating & Maintenance Expenses 7. Statement of Cash Flows 8. Electric Operating Budget 9. Technology Operating Budget 10. Electric Sales Versus Cost Detail Page 1 of 86  11. Electric Sales Versus Cost Summary 12. Electric & Fiber Work Orders 13. Expenses – Approval Requested B. OFFICE 1. Collections Report 2. Rate Case Filing 3. Certificate of Authority Filing C. Electric 1. 2023 Budget 2. 2022 Budget 3. Primary Extension Projects 2021 and 2022 4. Outages 5. Inspections 6. 2021 Budget 7. 2020 Budget 8. 2022 Budget 9. 2023 Budget 10. Outages 11. SMU System Load D. ADMINISTRATION 1. Energy Markets 2. SMU Facilities 3. Staffing 4. 2022 Test Year Rate Case 5. BPMA E. INFORMATION TECHNOLOGY 1. Task Spreadsheet 2. Rolling 12 Month Help Desk Tickets VIII. MISCELLANEOUS A. BADGER POWER MINUTES IX. AGENDA BILL A. Industrial Substation Recloser Purchase – Approval Requested B. Yearly Transformer Purchases – Approval Requested X. OLD BUSINESS XI. NEW BUSINESS A. SMU System Assessment XII. ADJOURNMENT DISABLED ACCESSIBLE (Contact City Clerk prior to meeting if require additional services.) It is possible that members of and possibly a quorum of members of other governmental bodies of the municipality may be in attendance at the above-stated meeting to gather information; no action will be taken by any governmental body at the above-stated meeting other than the governmental body specifically referred to above in this notice. Page 2 of 86  Minutes of Shawano Municipal Utilities Regular Commission Meeting December 5, 2022 Present: Hoeffs, Keuschel, Pescinski, Celmer Absent: Reuter. Malueg and Milavitz Also Present: General Manager Knapp, Electrical Engineer Koepp, Financial Director Miller, City Administrator Sheppard and Network Administrator Bisterfeldt Meeting called to order by President Pescinski at 4:00 p.m. Minutes of the November 7, 2022 meeting were read and placed on file. FINANCIAL Motion by Hoeffs seconded by Keuschel to approve the vouchers in the amount of $2,158,004.50. Roll Call (Hoeffs, Keuschel, Pescinski and Celmer) = AllYes. OFFICE Collections Report There were 184 Landlord notices mailed on October 31st. There were 725 Disconnect notices mailed on October 31st to customers who had outstanding amounts due at month—end. 11/11/22 2 tag commercial doors 11/14/22 118 automated reminder phone calls 11/16/22 No commercial disconnections 11/16/22 Tax Roll electric past due $13,384 for 91 customers Rate Case Filing Public hearing is scheduled for December 2 at 10:00AM. Public may attend by Zoom or telephone. Certificate of Authorig Filing Application for Certificate of Authority Utility Service Center Building was filed and received by — the PSC on November 11. Docket #5350-CU-103. ELECTRICAL Shawano Plaza This project is completed. BPMA EV Chargers The 4 EV chargers that BPMA is installing by the Shawano Plaza have been installed and are activated. Page 3 of 86 2022 Budget The URD replacement project was started in October. We decided to replace the old single phase primary cables inside the fairgrounds. This project should be completed in early December. At the end of November, one junction needed to be changed and converted to the new underground, and one transformer needed to be converted to the new underground. Primary Extension Projects 2021 and 2022 - Swiderski Development — This project is completed. All meters have not been installed, but all electrical facilities have_been installed and terminated. - Balsam Court This project is completed. — - N6857 Norton Road This project is completed. — 0 Old Hospital Site on N Bartlett Street — The primary has been installed for the 7 houses planned to the South of W4”‘ Street. This portion of the project is completed and four of the houses already have their services installed and connected. Elexco will be installing the primary for the 5 houses to the North ofW 4”‘ Street in December along with services to two houses one off 3”‘ Street and one off 4”‘ Street. Pole Reglacements Due to Vehicle Hits 0 The Streetlight that got hit on the corner of S Lincoln & Center Street was replaced in October. o The wood pole by 325 E 5”‘Street was replaced at the end of October. Both these replacements are billable and are completed. Outages Location Cause Date Est. # of Cust. 156 Robin Lane Underground Fault 11-20-22 On customer side of meter N6213 STH 47/55 Squirrel 11-25-22 1 Partial — 1266 E Green Bay Street Broken Cutout 11-27-22 2 Partial - lnsgections Crews have been out doing some inspecting so far in 2022. As of 7/6/22, 2,635 points have been inspected in 2022 or 27.46%. In 2021 2,414 inspections of 9,597 total point were completed or 25.15%. Our goal is to inspect 20% of the system a year. In prior years we have inspected 20.70%, 9.05%, 22.43%, 13.86%, 13.50% in 2016, 2017, 2018, 2019, and 2020 respectively. 2021 Budget 35 kV switch for East Shawano backup was received. 2020 Budget 35 kV recloser has arrived. This switch is planned to be installed at the Industrial Substation. 2022 Budget - The OH-URD project was started on August. L&N Hardwoods was converted to the underground feed from Anderson Avenue on September 30”‘. There is still one single phase service to convert and change the feed. After that the line overhead line behind L&N and Page 4 of 86  North States Wood Gates can be removed. This work will be completed in 2023 under a new WO #. - The Wescott Substation work has been completed. - The newjib has been installed on truck #237. - Bids for the tracked backyard derrick/bucket were approved and the unit is on order. Estimated delivery is summer of 2023. - SMU crews replaced 35 250 W HPS fixtures with 120 W LED fixtures. These were done — on W Green Bay Street, CTH B, and Engel Drive. 0 Pole relocations for the DPW street work has been completed. 2023 Budget - Meters were placed on order for 2023 at the beginning of August. In late July, we were notified from the factory representative that the lead times had increased to 52 weeks for all electric meters. - Bids were received forthe 60’ bucket truck and it was ordered in August. Primagy Extension Projects 2021 and 2022 - 1229-1239 Ridlington Avenue This project is completed. — - 1523 Industrial Drive This project is completed. -— - 103 Alpine Court The new service has been energized and 102 Northridge Drive has been — converted to the new underground. The rest of this project will be completed under a new WO in 2023 so that this WO can be closed and the cost of the extension can be billed to the customer. Outages SAIDI System Average Interruption Duration Index — Sum of all Customer Interruption DurationfTotaI # of Customers SAIFI System Average Interruption Frequency Index - Total # of Customers lnterruptedffotal # of Customers CAIDI Customer Average Interruption Duration Index - Sum of all Customer Interruption Duration/Total # of Customer Interruptions Avg. monthly # of customer minutes/month 246,240,000 minutes — Avg. yearly # of customer minutes/year 2,995,920,000 minutes — # of # of Interruption Month Outages Customers Duration SAIDI SAIFI CAIDI Interrupted (Minutes) Nov. 2022 0 0 0 0 0 0 Oct. 2022 0 0 0 O 0 0 Sep. 2022 2 2 165 0.028 0 82.5 Aug 2022 O 0 0 0 0 0 Jul. 2022 3 29 1,230 0.212 0.004 53.478 Jun. 2022 3 79 8,835 1.523 0.014 111.835 May 2022 3 19 2,005 0.346 0.003 105.526 Apr. 2022 1 1 150 0.026 0 150 Mar. 2022 0 0 0 0 0 0 Feb. 2022 0 0 0 0 0 0 Jan. 2022 0 0 0 0 O 0 Page 5 of 86  Dec. 2021 Nov. 2021 1 1 2,000 5 160,000 600 28.070 0.105 | 0.001 0.351 80 120 Rolling 12 13 2,124 172,385 29.722 I 0.366 81.161 Year # of Outages I SAIDI SAIFI CAIDI Rolling 12 M0 13 29.722 0.366 81.161 2021 32 115.211 1.647 69.944 I 2020 2019 2018 19 22 30 25.885 26.559 56.662 I 0.260 0.333 0.606 57.748 79.718 93.426 I 2017 35 27.710 0.336 82.521 2016 30 24.163 0.342 70.582 2015 31 71.932 0.673 106.884 2014 40 24.197 0.165 146.471 2013 36 38.101 0.790 48.243 2012 42 87.349 0.994 87.860 2011 43 124.719 0.860 146.148 2010 52 I 110.643 0.996 110.643 2009 38 36.012 0.312 115.352 2008 32 12.517 0.128 97.584 2007 43 25.906 0.462 56.064 2006 50 17.448 0.280 67.167 180 160 ]- 140 120 I 100 1 Outages -ii-SNDI 80 -I-SAHW 60 -it-CNDI A 2006 2008 II 2010 I ‘1 I I 2012 2014 2016 2018 2020 Rolling 12 Reliabilit Com arison — US Ener Information Administration’s Website SAIDI (OutageMinutes/Customer) SAIFI (Customer Outages/Year) WI Mun Avg (2016) 22.184 0.349 (2017) 12.964 0.223 120$) 21.429 0.315 WI Avg (2016) 79.2 0.686 (2017) 78.8 0.625 Page 6 of 86  (2018) 79.6 0.702 (2019) 93 0.755 _(2020) 86.4 0.703 us Avg (2016) 113.1 1.062 (2017) 116.9 1.007 (2018) 117.2 1.028 (2019) 118.6 1.017 (2020) 119 1.037 SMU (2016) 24.163 0.342 (2017) » 27.710 0.336 (2018) 56.662 0.606 (2019) 26.559 0.333 (2020) 25.885 0.260 SMU System Load Month Load Load Power Load Energyl Max. Min. Factor Factor Day Nov. 2022 40.26 21.14 98.1 76.70 741 Oct. 2022 40.67 I 20.76 98.1 74.48 744 Sep. 2022 43.68 21.51 97.8 73.81 774 Aug. 2022 46.59 22.27 97.5 71.45 . 799 Jul. 2022 45.95 23.40 97.7 72.37 798 Jun. 2022 46.46 22.72 97.8 69.86 779 May 2022 41.75 21.24 98.2 73.39 735 Apr. 2022 40.87 21.74 97.1 75.46 740 Mar. 2022 40.17 22.86 98.4 77.15 744 I Feb. 2022 41.19 21.66 98.7 76.99 761 I Jan. 2022 41.88 22.33 98.7 76.03 764 Dec. 2021 41.81 13.08 98.5 73.32 736 Nov. 2021 41.14 19.76 98.3 73.66 727 SMU Load Graph (Nov '21-Nov '22) 100 90 80 70 60 50 40 30 20 10 - E???ii???????g? §§§§§i‘£*§§§§’5?8§ jwnkw —¢—MaxkW -0-—pf —u—LF --u—EIDay 5 Page 7 of 86 ADMINISTRATION Energy Markets Recent price moves in energy related markets are not projecting a rosy picture yet, but it is one less dark than what it had been and is creating some cautious optimism for real improvement in the near future. European Union (EU) countries have had some positive breaks this fall with milder weather than expected and natural gas stores that look adequate to meet demands thru the coming winter. That news in turn has reduced some pressure on North American natural gas supplies going to LNG facilities. Every operational LNG facility is still producing at 100% but the psychology has changed and many times, that is all that matters. The local marginal prices (LMPs discussed last month) which GLU pays for market power, and the variable fuel costs of our |ong—termformula—basedcontracts, are driven largely by the current cost of natural gas. Less global concern for natural gas supplies and lower costs will help dampen and may even reverse 2022 increases in local wholesale electricity rates. SMU Facilities Our application for Certificate of Authority or Construction Authorization (CA) to construct a new SMU Service Center building was officially filed on November 11, 2022 and docketed as 5350- CU—103.It typically takes about a month for PSC staff to perform an initial review and generate fol|ow~up questions. That may be delayed with the recent holiday, but I still hope to receive a first response yet in December. SMU, Dimension IV and Miron Construction staff are meeting Tuesday December 6”‘to further work on the laundry list of potential “alternatives” and discuss design questions as the construction drawings take shape. Staffing The application period for the Systems Administrator position, vacated by Dustin Faust last month, has closed and we have scheduled interviews for 5 applicants later this week. Applicant quality is promising, and we are hopeful a successful candidate may be among them. 2022 Test Year Rate Case The Pubic and Technical Hearing will have been on Friday December 2"“. As I write this the evening prior, no surprises or “fireworks” are expected at the hearing. No one has taken issue with or has offered evidence to counter our position that the Cp—4class currently pays nearly $600,000 a year less than the cost to provide service to them and that other rate classes, particularly Cp—3and Cp—2,are paying $600,000 more, thereby subsidizing the Cp—4class by about 11%. The only issue is whether to “step-in” the rate increases to Cp—4and delay the full decreases to Cp-3 and Cp—2for at least another rate case cycle, or finish the job now with an 11% increase to Cp—4and allocated decreases or smaller increases to the other rate classes. SMU staff and consultants, and witnesses representing Little Rapids Corporation, continue to argue for ending the subsidies now while Aarrowcast witnesses ask for continued “gradualism” to reduce “rate shock” on Aarrowcast. It is our belief that the PSC took the unusual step of ordering us in for a 2022 rate case to finish the job and provide final rate relief to those classes subsidizing Aarrowcast. Only the Commission knows what they really intended, but we will find out sometime in late January. 6 Page 8 of 86 lnitial briefs are due on December 16”‘with reply briefs on the 23”’. After that, PSC staff will develop a decision matrix which we will haggle over, and the case will be scheduled for a PS0 Commission meeting. NEW BUSINESS Motion by Celmer, seconded by Hoeffs to elect Malueg as Vice President. Motion carried. Motion by Hoeffs, seconded by Celmer to re—elect Pescinski as President. Motion carried. Motion by Hoeffs, seconded by Celmer to go into closed session pursuant to Wisconsin State — Statute (’l)(c) considering employment, promotion, compensation or performance evaluation data of any public employee over which the governmental body has jurisdiction or exercises responsibility to discuss compensation and performance evaluations, update in General Manager selection, retirement transmission plan and employee 2023 wages. Motion carried. Motion by Hoeffs, seconded by Celmer to return to open session at 5:3 p.m. Motion carried. Motion by Keuschel, seconded by Celmer to approve all 2023 wage/salary adjustments as presented by Knapp in closed session. Roll Call (Keuschel, Celmer, Hoeffs, Pescinski) = All Yes. Knapp will be supplying approved amounts to the appropriate staff for payroll. Meeting adjourned by Pescinski at 5:35 p.m. Respectfully submitted by, Robert Koepp Secretary Page 9 of 86  Minutes of Shawano Municipal Utilities Special Commission Meeting December 12, 2022 Present: Malueg, Hoeffs, Reuter, Keuschel, Pescinski, Celmer Absent: Milavitz Also Present: General Manager Knapp, City Administrator Sheppard, Vick, Nordin, Schardt and Bruce Gomm Meeting called to order by President Pescinski at 4:00 p.m. introduction of proposed GM Bruce Gomm was done, he gave his bio to the group. All in the group introduced themselves to Bruce, a good discussion followed. A brief outline of the proposed transition period from Brian Knapp to Bruce Gomm as GM was given by Ron Malueg and Roger Pescinski to the group. Bruce and Brian were then excused. Motion by Keuschel, seconded by Celmer to go into closed session pursuant to Wisconsin State Statute (’l)(c) considering employment, promotion, compensation or performance evaluation data of any public employee over which the governmental body has jurisdiction or exercises responsibility to discuss the filling of the General Manager position. Motion carried. Motion by Hoeffs, seconded by Keuschel to return to open session. Motion by Keuschel, seconded by Hoeffs to approve the hiring of Bruce Gomm per the employment offer presented to Bruce. Roll Call (Keuschel, Hoeffs, Pescinski, Malueg, Reuter and Celmer) = All Yes. Meeting adjourned by Pescinski at 5:19 pm. Respectfully submitted by, Roger Pescinski Acting Secretary Page 10 of 86  Municipal ElectricUtilitiesof Wisconsin UMEUW Service. Advocacy.Safety. 725 Lois Drive Sun Prairie, WI 53590 T: 608-837-2263 F: 608-837-0206 www.meuw.org City of Shawano November 2022 Prepared By:Sean T. Wall, MEUWSenior Regional Safety Coordinator SAFETY REPORT Incident Reporting Report Only Medical Lost Time Recordable Prop. Damage JAN 1 O 1 0 FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD 12 O O 3 2 *Recordable is the total ofMedicaland Lost Time injuryand illnesses that meet mandatory reporting guidelines. Incident Descriptions: Recordable - SMU employee fell on ice, slipped and fell. Saw chiropractorfor adjustments. Lainilg Completed training this month Andy Danielforklift certification SPCC training (Electric only) Planned training for Q4 2022 Fall Protection (Pat) Monday 12/12 OOOOOHOOOI-| 0 l-‘ N O l-‘ H H l-‘LU l—‘Ol—‘OOOOOOO OOOOOOOOOO _l. l-‘ Page 11 of 86 Audits / Inspections Facility Inspections Inspection Date Facility/Building 2017 2018 2019 2020 2021 2022 UtilitiesBuilding 11/20/17 12/11/18 12/3/19 11/10/20 11/4/21 ~ DPW Building 5/15/17 12/11/18 12/3/19 11/17/20 12/15/21 ~ Park & Rec Center ~ 12/11/18 12/13/19 ~ 11/4/21 ~ Civic Center ~ ~ 8/22/19 ~ 12/15/21 ~ Land Fill ~ ~ 12/13/19 ~ ~ ~ City Hall & PD 12/8/17 12/11/18 ~ 12/8/20 12/15/21 ~ Well houses ~ ~ 10/15/19 ~ ~ ~ — Facilities will be inspected close to annually. Compliance/Risk Management - Attend Safety Committee meeting — Follow ups / reviews of incidents with employees involved - Updated confined space entry permit with changes found via training — Working on E—cyclingtraining for landfill (audit follow ups) l‘."n1'-Oiil ,' Page 12 of 86  Municipal ElectricUtilities of Wisconsin Service. Advocacy.Safety. * 725 Lois Drive Sun Prairie, WI 53590 T: 608-837-2263 F: 608-837-0206 www.meuw.org City of Shawano December 2022 . Prepared By:Sean T. Wall, MEUWSenior Regional Safety Coordinator SAFETY REPORT Incident Reporting Report Only Medical Lost Time Recordable Prop. Damage JAN 1 o o 1 0 FEB MAR APR MAY JUN JUL AUG SEP l OCT NOV DEC YTD 12 o 0 l 3 *Recordableis the total ofMedicaland Lost Time injury and illnesses that meet mandatory reporting guidelines. Incident Descriptions: - No incidents reported in December Trainin Completed training this month 0 Andy Danielforklift certification 0 Fall Protection safety training Planned training for Q1 2023 - Bloodborne Pathogens 0 Hearing Conservation & PPE 11 OOI-'NOl-ll-‘l—‘l-‘i-‘Lu NOOOOOOHOOOH Oi-‘OHOOOOOOO OOOOOOOOOOO Page 13 of 86 Audits / Inspections Facility Inspections Inspection Date Facmty/Bunding 2017 2018 2019 2020 2021 2022 UtilitiesBuilding 11/20/17 12/11/18 12/3/19 11/10/20 11/4/21 12/20/22 DPW Building 5/15/17 12/11/18 12/3/19 11/17/20 12/15/21 12/20/22 Park & Rec Center ~ 12/11/18 12/13/19 ~ 11/4/21 ~ Civic Center ~ ~ 8/22/19 ~ 12/15/21 ~ Land Fill ~ ~ 12/13/19 ~ ~ ~ City Hall & PD 12/8/17 12/11/18 ~ 12/8/20 12/15/21 12/20/22 Well houses ~ ~ 10/15/19 ~ ~ ~ — Facilities will be inspected close to annually. 0 Utilities building I Eye washes that needed new eyewash fluid (current bottles expired). 0 DPW garage I Appliancesin break room need to be plugged into the wall (not power strip) I Drillpress needs to be affixed to the floor I Eye wash weekly inspections needed I Emergency lights back up batteries needed (failed tests) 0 City Hall I Emergency lights back up batteries needed (failed tests) Compliance/Risk Management — Attend Safety Committee meeting - Follow ups/ reviews of incidents with employees involved ~ Working on E—cyclingtraining for landfill (audit follow ups) 0 Awaiting further steps after all training has been reviewed l'.:1—2‘7€ Page 14 of 86 Page 15 of 86 Page 16 of 86 Page 17 of 86 Page 18 of 86 Page 19 of 86 Page 20 of 86 Page 21 of 86 Page 22 of 86 Page 23 of 86 Page 24 of 86 Page 25 of 86 Page 26 of 86 Page 27 of 86 Page 28 of 86 Page 29 of 86 Page 30 of 86 Page 31 of 86 Page 32 of 86 Page 33 of 86 Page 34 of 86 Page 35 of 86 Page 36 of 86 Page 37 of 86 Page 38 of 86 Page 39 of 86 Page 40 of 86 Page 41 of 86 Page 42 of 86 Page 43 of 86 Page 44 of 86 Page 45 of 86 Page 46 of 86 Page 47 of 86 Page 48 of 86 Page 49 of 86 Page 50 of 86 Page 51 of 86 Page 52 of 86 Page 53 of 86 Page 54 of 86 Page 55 of 86 Page 56 of 86 Page 57 of 86 Page 58 of 86 Page 59 of 86 Page 60 of 86 Page 61 of 86 Page 62 of 86 Page 63 of 86 Page 64 of 86 Page 65 of 86 Page 66 of 86 Page 67 of 86 Page 68 of 86 Page 69 of 86 Page 70 of 86 Page 71 of 86 Page 72 of 86 Page 73 of 86 Page 74 of 86 Page 75 of 86 Page 76 of 86 Page 77 of 86 Page 78 of 86 Page 79 of 86 Page 80 of 86 Page 81 of 86 Page 82 of 86 Page 83 of 86 Page 84 of 86 Page 85 of 86 Page 86 of 86