Regular Board Meeting Agenda

Deer Island District Office

August 15, 2017 6:00 p.m.

A. Convene Meeting

1. Pledge of Allegiance

2. Agenda – Requests for Additions or Deletions

3. Public Hearing: August 15, 2017 Electric Rate Changes

Open Public Hearing: - Staff Comments - Public Testimony / Comments / Questions

~ Proponents ~ Opponents ~ Rebuttal

Close Public Hearing - Deliberation by Board of Directors

4. Public Comment

B. Items for Action Previous

Activity/Date Inclusion

Code

1. Minutes, July 18, 2017 Regular Meeting

2. Minutes, August 1, 2017 Special Meeting – Rate Advisory

3. Financial Reports for July, 2017

4. Accounts Payable Report for July, 2017

5. Resolution 17-07: Setting Electric Rates

6. Resolution 17-08: Supporting HR3144

7. Authorization to Bid – Flagging Services

8. Award Bid – Old Bunker Hill Trenching

9. 401(a) Matching Plan Amendments

C. Items for Discussion

1. Reports: a. Outages b. Write-offs c. Staff

2. Board Comments

3. Public Comment

4. Executive Session pursuant to ORS 192.660 (2)(h) consultation with legal counsel concerning legal rights and duties regarding current litigation or litigation likely to be filed.

*

LR=Legal Review Requested PD=Previously Discussed SR=Staff Review

No Symbol Information included in the Agenda Packet

Information to be distributed at the Board Meeting

Information previously issued

No information to be distributed

Information sent under Separate Cover

* Refer to back – read in open session

EXECUTIVE SESSION PROCEDURES Instruction To The Press

August 15, 2017 Background, Attorney General’s Public Meeting Manual:

The Public Meeting Law now expressly provides that representatives of the news media shall be allowed to attend all executive session except, sessions involving deliberations with persons designated to carry on labor negotiations. The Board may require that specified information that is the subject of the executive session not be disclosed. The Board President (presiding officer) should give instructions to the press regarding what is not to be reported. Absent any such instructions, the entire proceedings may be reported and the purpose for having an executive session may be frustrated. Except in the rarest instances, the Board at least should allow the general subject of the discussion to be disclosed, and it cannot prevent discussion of the statutory grounds justifying the executive session. The nondisclosure requirement should be no broader than the public interest requires.

Instruction to the Press Pursuant to ORS 192.660(4):

The Columbia River PUD will now meet in executive session for the purpose of discussing matters involving litigation or litigation likely to be filed.

The executive session is held pursuant to ORS 192.660 (2)(h) which allows the Board to consult with counsel concerning legal rights and duties regarding current litigation or litigation likely to be filed, the general subject of which shall not be disclosed. Representative of the news media and designated staff shall be allowed to attend the executive session which will be convened in another room. Representatives of the news media are specifically directed not to report on any of the deliberations during the executive session, except to state the general subject of the session as previously announced. No decision may be made in executive session. At the end of the executive session, the Board will return to open session.

*

1 – July 18, 2017 Regular Meeting

COLUMBIA RIVER PEOPLE’S UTILITY DISTRICT

Regular Meeting

July 18, 2017

A. CONVENE MEETING

The Regular Meeting of the Board of Directors of the Columbia River PUD was called

to order by President, Jake Carter, at the Deer Island District Office at 6:00 p.m. The

following individuals were present:

Directors: Staff: Jake Carter Libby Calnon, Community & Public Relations

Rob Mathers Eli Crape, Operations

Craig Melton Tim Lammers, Energy Services

Harry Price Mikka Mullican, Customer Accounts

Debbie Reed John Nguyen, Interim General Manager

Tracy Pinder, Accounting & Finance

Heidi Ralls, Administration

Branden Staehely, Engineering

Consultants: Sonia Wendelschafer, Human Resources

Philip Griffin, Attorney

Bruce & Carolyn Shoemaker, Acti-Dyne Research

Public: Monica Cannon Jack Carter Sharon Carter Kathy Hoffman

Elva Mills Jennifer Nelson Annie Nguyen Leonard Peterson

1. Pledge of Allegiance: President Carter led the Board in the pledge of allegiance.

2. Agenda – Requests for Additions or Deletions: H. Ralls indicated Discussion Item 2

would need to be deferred to the August Board Meeting; President Carter stated there will

be no Executive Session.

3. Public Comment: None

4. Presentation – ActiDyne: Employee Survey Results: Bruce and Carolyn Shoemaker

reviewed the results of the Employee Satisfaction Survey. The survey was comprised of

the same 30 questions utilized last year. All employees, excluding the General Manager

were invited to participate. Out of the 47 invited, 45 responded.

The survey revealed that the three areas receiving the lowest scores included

communication between peers, teamwork and cooperation across the organization and

upward communication from employees to managers. The survey also revealed the three

areas receiving the highest marks were fair pay for the work performed, employees

knowing what is expected of them at work, and the utility places an appropriate priority

2 – July 18, 2017 Regular Meeting

on employee safety. Mr. Shoemaker emphasized that all 30 statements had a good mean

score above 6.9 out of 10.

B. ITEMS FOR ACTION

1. Minutes, June 20, 2017 Regular Meeting: Directors Melton/Mathers moved to approve

the Minutes of the June 20, 2017 Regular Meeting as presented. Director Mathers

commented that the minutes are precise and well done. Vote: unanimously approved.

2. Minutes, June 22, 2017 Special Meeting – Rate Advisory: Directors Mathers/Reed

moved to approve the Minutes of the June 22, 2017 Special Meeting as presented. Vote:

approved with 4 votes. Director Melton abstained as he did not attend the meeting.

3. Financial Reports for June 2017: T. Pinder reviewed the financial reports for month end

June 2017. Month end total cash balance including investments and long-term debt

reserves is $10,993,397. Directors Price/Melton moved to approve the financial reports for

June 2017 as presented. Vote: unanimously approved.

4. Accounts Payable Report for June, 2017: T. Pinder reviewed a number of payments and

provided clarification on others. Directors Melton/Mathers moved to approve the

Accounts Payable for June, 2017 as presented. Vote: unanimously approved.

5. Call for Public Hearing: August 15, 2017 - Rates: President Carter called for a Public

Hearing on rate activity at the August 15, 2017 Board Meeting at 6:00 p.m.

6. Award Bid: Voltage Regulators: B. Staehely presented the evaluation information and

results of the sealed bid for the purchase of 12 single-phase pole mounted voltage

regulators. After some discussion, Directors Melton/Price moved to award the bid for the

purchase of twelve (12), single-phase, pole-mounted voltage regulators to Anixter for the

Cooper Power Systems Regulators in the total amount of $154,111.56. Vote: unanimously

approved.

7. Authorization to Bid: Trenching – Old Bunker Hill Road: B. Staehely reviewed the

request for authorization to bid for trenching. Of note, staff had requested bids which were

returned at a higher cost than allowed to bid internally. After some discussion, Directors

Mathers/Reed moved to authorize staff to solicit sealed bids for trenching along Old

Bunker Hill Road, with the bid opening to be held at the office of Columbia River PUD

on August 9, 2017 at 3:30 pm pacific prevailing time. Vote: unanimously approved.

8. Authorization to Bid: Power Transformer: B. Staehely explained a new power

transformer can take up to 44 weeks after the award of the bid to be delivered. The PUD

has a goal to have the Betsy Johnson substation operational in 2018 so the bid process

needs to begin soon. After some discussion, Directors Melton/Reed moved to authorize

staff to solicit sealed bids for the purchase of a new power transformer with the bid

opening to be held at the office of Columbia River PUD on August 30, 2017 at 3:30 p.m.

pacific prevailing time. Vote: unanimously approved.

3 – July 18, 2017 Regular Meeting

C. ITEMS FOR DISCUSSION

1. Mid-Year Budget Review: T. Pinder opened the presentation noting this is a mid-year

review of the 2017 Operating and Capital Budget. She reminded the Board that the 2017

Budget included an assumption of a 5% rate increase effective October 1. Staff provided

information to the Board regarding significant variations to the budget. T. Pinder indicated

the financial position of the utility is positive with the cash balance increasing. The year-

end total cash forecast is at $9.4 million, an increase of $1.2 million over budget.

T. Pinder reviewed the cash management policy and methodology with the Board noting

the results show the utility should have a total of $8.2 million in cash. She noted that the

cash management methodology will be reviewed at the August 1 rate advisory committee

meeting. J. Nguyen thank Tracy and staff for all their efforts in putting this presentation

together.

2. 401(a) Defined Contribution Plan Matching –Amend: Deferred to the August Meeting.

3. Reports:

a. Outages: E. Crape indicated there was nothing significant to report.

b. Write-offs: M. Mullican provided information on the write-offs involving motor

vehicle damage to property. Staff is looking into other options for collecting the

Miscellaneous Bills.

c. Staff: J. Nguyen noted that escrow for the Betsy Johnson Substation land purchase is

being extended out to August 1. There was an error at the county regarding the road

right of way.

J. Nguyen and L. Calnon reported they attended the Cascade Tissues ribbon cutting

ceremony with Director Reed. It was a good tour and there was tremendous pride from

the employees who provided information on each job.

S. Wendelschafer announced Colleen Pellham was Employee of the Month for June.

L. Calnon indicated there are parking passes and time available to help in the Fair

Booth. She announced the friendly Food Drive competition between Columbia River

PUD and Clatskanie PUD includes Board members. The competition runs from July

15 to August 4.

E. Crape announced Jesse Hutchins and Patrick Hart will become apprentices effective

August 1.

B. Staehely announced Brooke Sisco, Joint Use Coordinator, was selected to be the

Board of Directors PUD Representative for the Oregon Joint Use Association. This is

a tremendous benefit to the utility.

4 – July 18, 2017 Regular Meeting

4. Board Comments: Director Melton thanked Director Mathers for keeping the rest of the

Board abreast of the legislative issues.

5. Public Comment: None

6. Executive Session: None

There being no further business to come before the Board, the meeting was adjourned at 8:35

p.m.

Columbia River People’s Utility District

By ________________________________

Heidi Ralls, Board Secretary

1 – August 1, 2017, Special Meeting – Rate Advisory Committee

Special Meeting – Rate Advisory Committee

August 1, 2017

The Special Meeting of the Board of Directors of the Columbia River PUD was

called to order by President, Jake Carter, at the Deer Island District Office at 5:16 p.m.

Notice was provided to the press and interested parties. The following individuals were

present:

Directors: Staff: Jake Carter John Nguyen Tracy Pinder

Rob Mathers Libby Calnon Heidi Ralls

Harry Price Mikka Mullican Tim Lammers

Debbie Reed Branden Staehely Sonia Wendelschafer

Rick Calnon Rachel Swanson

Eli Crape

Consultants:

Steve Andersen, EES Consulting

Committee Members:

Jeff Mapes Jack Carter Chuck Daughtry Grant Gillis

Bill Eagle Charles Petersen

Public: None

President Carter welcomed the committee and reviewed the agenda for the evening. He

informed the committee that as the Board prepares to make a decision regarding rates,

they will take into consideration the information from EES Consulting, input from the

Rate Advisory Committee, recommendations from Staff, and public testimony. He also

informed the committee that the Board is expecting to take action at the August 15, 2017

Board Meeting.

J. Nguyen provided a few housekeeping items and turned the meeting over to T. Pinder.

DISCUSSION OR ACTION ITEMS

1. 2017 Cost of Service Analysis (COSA): T. Pinder invited the committee to provide

feedback and ask questions as the meeting progressed. She reviewed information as

requested at the June 22 committee meeting including the role of the Rate Advisory

Committee, what a Cost of Service Analysis is, and covered demand and energy

usage.

There was discussion on net metering and how it will affect rates moving into the

future.

2 – August 1, 2017, Special Meeting – Rate Advisory Committee

T. Pinder continued with a detailed explanation of the COSA Model then proceeded

with a review of the BPA Rate Increase. She noted the final BPA rate adjustment has

been announced and the PUD’s power charge will increase by 4.29% and

transmission charges will increase by 0.37%. The information shown tonight will

reflect these changes.

Steve Anderson of EES Consulting reviewed the rate design decision making process.

He discussed the recommended changes to rate structures and reviewed a five year

projection using an overall 5.1% increase in Oct 2017 and an overall 5.5% increase in

2019 while maintaining an average of $8.1 million in cash reserves.

L. Calnon reviewed a rate comparison for commercial and industrial customers in the

Portland Metro area.

After a brief break, L. Calnon continued with an explanation of the BPA Spill

Surcharge and reviewed the record of decision spill surcharge mechanism

components which led to discussion of adding the potential surcharge to the rate

increase or wait until the PUD receives the charge to pass it on to customers. The

Committee concurred the surcharge should not be added to the October rate

treatment.

Staff Recommendation was discussed. Each committee member received information

on what their own account would reflect with each rate scenario. After significant

discussion, each member of the committee provided their opinion.

Overall, the committee concurred it was important to work toward the true cost of

service by instituting incremental increases to the customer charge while continuing

to be sensitive to the more vulnerable customers.

The Board and Staff extended their appreciation to the Committee for their invaluable

time and contributions and reminded them the Rate Hearing is scheduled for the

August 15, 2017 Board Meeting at 6:00 p.m.

There being no further business to come before the Board, the meeting was adjourned

at 8:19 p.m.

Columbia River People’s Utility District

By ________________________________

Heidi Ralls, Board Secretary

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R.M. 08/15/2017

ACTION ITEM BEFORE THE BOARD OF DIRECTORS

COLUMBIA RIVER PUD

AGENDA ITEM #B-5

Resolution 17-07: Setting Electric Rates

August 15, 2017

BACKGROUND

Columbia River PUD reviews its electric rates in conjunction with the rate periods of its

wholesale power provider, Bonneville Power Administration (BPA). BPA’s next rate period

begins October 1, 2017, and runs through September 30, 2019. Wholesale power costs from BPA

comprise approximately 55% of the PUD’s annual operating and capital budget.

Cost of Service Analysis

In March 2017, the PUD contracted EES Consulting (EES) to conduct a Cost of Service Analysis

(COSA) covering BPA’s FY 2018-19 rate period. As part of the COSA, EES reviewed:

The PUD’s 2016 actual loads and expenditures.

The PUD’s 2017 load forecasts.

The PUD’s projected FY 2017-2021 expenditures.

Changes to BPA’s wholesale power costs.

The COSA calculates the total revenue required by the PUD to meet its planned expenses. It also

calculates the cost to serve each rate class to determine how much revenue each class should

contribute to the total.

Examples of customers within each rate class include:

Residential – Single family dwellings, apartments, farms.

Small General Service – Small commercial storefronts, auto body shops, coffee shops.

Large General Service – Large grocery/department stores, schools, small manufacturers.

Irrigation – Agricultural farms and drainage districts.

Industrial Primary Service – Midsize manufacturers.

Industrial Transmission Service – Large industrial plants.

Rate Advisory Committee

The PUD held two Customer Rate Advisory Committee workshops to review the results of the

2017 COSA. The committee is made up of representatives from all rate classes and the PUD

Board of Directors. Steve Andersen from EES presented the initial analysis to committee

members at the June 22, 2017, workshop. On July 26, 2017, BPA released their final rate

decision. EES incorporated this information into its COSA, and presented the final results at the

second workshop on August 1, 2017. As part of this second workshop, PUD staff then presented

their recommendations for electric rate changes.

The timeline for the 2017 rate review process includes:

June 22 Rate Advisory Committee discusses revenue requirements and rate design options.

July 26 BPA releases its final rates for FY 2018-2019.

R.M. 08/15/2017

August 1 Rate Advisory Committee discusses COSA results and proposed rate changes.

August 15 Public hearing on proposed rate changes.

Board discussion and action on new electric rates.

September Communication of new rates to customers.

Programming and testing of new rates in the PUD’s billing system.

October 1 Implementation of revised Rate Schedules for all bills rendered after October 1.

SUMMARY

Major Cost Drivers

Increasing power costs is the main driver of the need for a rate increase. Beginning October 1,

2017, the PUD will be paying BPA 4.29% more for power services and 0.37% more for

transmission services. Wholesale power costs from BPA comprise approximately 55% of the

PUD’s annual operating and capital budget.

A rate increase is also needed to cover large capital construction costs. Load growth in the

service area has accelerated the need for construction of a new substation in Scappoose, thus

increasing the PUD’s near-term capital budget.

COSA Recommendation

The COSA recommends an overall 5.1% electric rate increase beginning October 1, 2017.

The COSA also recommends applying a larger increase to the Residential, Small General

Service, and Irrigation rate classes, and a smaller increase to the Large General Service and

Industrial classes. Increasing rates for the Residential, Small General Service, and Irrigation by a

larger amount will bring each class closer to the true cost of service.

Note: No rate change recommendation was provided for the lighting rate class. A detailed study is

underway for this class, and recommendations for those rates will be presented at a future meeting.

R.M. 08/15/2017

Rate Design

Under the current rate design, the PUD collects approximately 83% of its revenues from energy

charges, and 17% from customer charges and demand charges. Approximately 55% of expenses

are energy related and approximately 45% are related to fixed costs and demand.

The COSA indicates a need to increase customer and demand charges to shift revenue collection

away from variable energy charges. This will reduce the risk of under-collecting revenues when

loads are less than projected, such as during warm winters. Gradually increasing customer and

demand charges will move the PUD closer to a rate design that supports the true cost of service.

Definitions of Charges

Customer Charge: A flat fee intended to cover the fixed costs of operating the utility.

Examples include the office building, administration, billing and metering systems, taxes,

debt service, insurance, and benefits.

Energy Charge: A variable charge intended to cover the cost of the energy used during

the billing period, measured in kilowatt-hours (kWh).

Demand Charge: A variable charge for the highest rate of electricity use during the

billing period, measured in kilowatts (kW). It covers costs related to maintaining the

distribution system, such as poles, wires, substations, trucks, and operations.

Possible Rate Options

Based on the COSA recommendation for an overall 5.1% rate increase beginning October 1,

2017, PUD staff provided to the Rate Advisory Committee three possible rate options to consider

at the workshop held on August 1, 2017:

Option 1: A 5.5% rate increase for Residential, Small General Service and Irrigation.

A 4.6% rate increase for Large General Service and Industrial.

Option 2: A 6.0% rate increase for Residential, Small General Service and Irrigation.

A 3.9% rate increase for Large General Service and Industrial.

Option 3: A 6.5% rate increase for Residential, Small General Service and Irrigation.

A 3.25% rate increase for Large General Service and Industrial.

Each option includes scenarios for varying increases to the customer charges and energy charges

for the Residential, Small General Service and Irrigation rate classes. Increases in demand

charges are recommended for the Large General Service and Industrial-Primary rate classes.

Industrial-Transmission scenarios contain changes to the energy charges only.

Rate Schedules for Income-Qualified Customers

There are 669 customers on Rate Schedule (RS) 13, Special Waiver, and 464 customers on RS

14, Senior Discount. These income-qualified customers pay 20% of the published customer

charge for RS 10, Residential. They currently pay $2.00 of the $10.00 customer charge. If the

customer charge is increased with the adoption of new rates, the payment amount would be re-

calculated as follows:

R.M. 08/15/2017

$12.00 Customer Charge for RS 10 $2.40 Customer Charge for RS 13 & 14

$12.50 Customer Charge for RS 10 $2.50 Customer Charge for RS 13 & 14

$15.00 Customer Charge for RS 10 $3.00 Customer Charge for RS 13 & 14

Customers on RS 14, Senior Discount, also receive a 10% discount on their energy charges.

Use of Cash Reserves

The PUD will use cash reserves to limit the rate increase to an overall 5.1%. The PUD will use

$456,719 of reserve funds in 2017 and $305,528 in 2018. If a 5.1% overall rate increase is

implemented on October 1, 2017, the cash balance is projected to remain above the PUD’s

targeted amount, which was calculated at $8.1 million for the 2017 Budget.

OPTIONS

The COSA includes three options for allocating the 5.1% overall rate increase among the PUD’s

customer classes. Within each option, there are scenarios to consider for varying customer

charge, energy charge, and demand charge amounts.

R.M. 08/15/2017

Option 1: One option for achieving an overall 5.1% rate increase is to increase Residential,

Small General Service and Irrigation rate schedules by 5.5%, and increase Large General Service

and Industrial rate schedules by 4.6%. These rates would be effective for all bills rendered after

October 1, 2017.

Option 1 - Residential Rate Class – 5.5% Increase

Scenario

Customer Charge

(/month)

Energy Charge

(/kWh)

Demand Charge

(/kW-month)

Current $10.00 $0.0684 None

Scenario 1 $12.00 $0.0708 None

Scenario 2 $12.50 $0.0704 None

Scenario 3 $15.00 $0.0681 None

Option 1 – Small General Service Rate Class – 5.5% Increase

Scenario

Customer Charge

(/month)

Energy Charge

(/kWh)

Demand Charge

(/kW-month)

Current $18.00 $0.0720 None

Scenario 1 $22.00 $0.0743 None

Scenario 2 $25.00 $0.0726 None

Option 1 - Irrigation Rate Class – 5.5% Increase

Scenario

Customer Charge

(/year)

Energy Charge

(/kWh)

Demand Charge

(/kW-month)

Current $180.00 $0.0730 None

Scenario 1 $180.00 $0.0773 None

Scenario 2 $200.00 $0.0767 None

Option 1 – Large Customer Rate Classes – 4.6% Increase

Customer

Charge

(/mo)

Energy Charge

(/kWh)

Demand Charge (/kW-

month)

Large General Service Current $50.00 $0.0510 $5.45

Large General Service Proposed $50.00 $0.0510 $6.38

Industrial Primary Current $80.00 $0.0440 $5.75

Industrial Primary Proposed $80.00 $0.0440 $6.70

Industrial Transmission Current $150.00 $0.0350 $3.90

Industrial Transmission Proposed $150.00 $0.0369 $3.90

R.M. 08/15/2017

Option 2: A second option for achieving an overall 5.1% rate increase is to increase Residential,

Small General Service and Irrigation rate schedules by 6.0% and increase Large General Service

and Industrial rate schedules by 3.9%. These rates would be effective for all bills rendered after

October 1, 2017.

Option 2 - Residential Rate Class – 6.0% Increase

Scenario Customer Charge

(/month)

Energy Charge

(/kWh)

Demand Charge

(/kW-month)

Current $10.00 $0.0684 None

Scenario 4 $12.00 $0.0712 None

Scenario 5 $12.50 $0.0708 None

Scenario 6 $15.00 $0.0684 None

Option 2 – Small General Service Rate Class – 6.0% Increase

Scenario Customer Charge

(/month)

Energy Charge

(/kWh)

Demand Charge

(/kW-month)

Current $18.00 $0.0720 None

Scenario 3 $22.00 $0.0747 None

Scenario 4 $25.00 $0.0730 None

Option 2 - Irrigation Rate Class – 6.0% Increase

Scenario Customer Charge

(/year)

Energy Charge

(/kWh)

Demand Charge

(/kW-month)

Current $180.00 $0.0730 None

Scenario 3 $180.00 $0.0777 None

Scenario 4 $200.00 $0.0771 None

Option 2 – Large Customer Rate Classes – 3.9% Increase

Customer

Charge (/mo)

Energy Charge

(/kWh)

Demand

Charge (/kW-

month) Large General Service Current $50.00 $0.0510 $5.45

Large General Service Proposed $50.00 $0.0510 $6.24

Industrial Primary Current $80.00 $0.0440 $5.75

Industrial Primary Proposed $80.00 $0.0440 $6.56

Industrial Transmission Current $150.00 $0.0350 $3.90

Industrial Transmission Proposed $150.00 $0.0367 $3.90

R.M. 08/15/2017

Option 3: A third option for achieving an overall 5.1% rate increase is to increase Residential,

Small General Service and Irrigation rate schedules by 6.5% and increase Large General Service

and Industrial rate schedules by 3.25%. These rates would be effective for all bills rendered after

October 1, 2017.

Option 3 - Residential Rate Class – 6.5% Increase

Scenario

Customer Charge

(/month)

Energy Charge

(/kWh)

Demand Charge

(/kW-month)

Current $10.00 $0.0684 None

Scenario 7 $12.00 $0.0716 None

Scenario 8 $12.50 $0.0711 None

Scenario 9 $15.00 $0.0688 None

Option 3 – Small General Service Rate Class – 6.5% Increase

Scenario

Customer Charge

(/month)

Energy Charge

(/kWh)

Demand Charge

(/kW-month)

Current $18.00 $0.0720 None

Scenario 5 $22.00 $0.0751 None

Scenario 6 $25.00 $0.0734 None

Option 3 - Irrigation Rate Class – 6.5% Increase

Scenario

Customer Charge

(/year)

Energy Charge

(/kWh)

Demand Charge

(/kW-month)

Current $180.00 $0.0730 None

Scenario 5 $180.00 $0.0781 None

Scenario 6 $200.00 $0.0775 None

Option 3 – Large Customer Rate Classes – 3.25% Increase

Customer

Charge (/mo)

Energy Charge

(/kWh)

Demand

Charge (/kW-

month) Large General Service Current $50.00 $0.0510 $5.45

Large General Service Proposed $50.00 $0.0510 $6.11

Industrial Primary Current $80.00 $0.0440 $5.75

Industrial Primary Proposed $80.00 $0.0440 $6.43

Industrial Transmission Current $150.00 $0.0350 $3.90

Industrial Transmission Proposed $150.00 $0.0364 $3.90

R.M. 08/15/2017

Option 4: Direct staff to make other changes to the rates, by specifying the customer charge,

energy charge, and demand charge for each customer class.

Option 5: Make no changes to the rates at this time.

STAFF RECOMMENDATION

Staff Recommendation: Staff recommends Option 2 - implementing an overall 5.1% rate

increase by increasing Residential, Small General Service and Irrigation rate schedules by 6.0%

and increasing Large General Service and Industrial rate schedules by 3.9%. Rates would be

effective for all bills rendered after October 1, 2017.

Staff further recommends the Board select the following rate design scenarios from Option 2:

Residential - Scenario 5

Small General Service - Scenario 3

Irrigation - Scenario 4

Large General Service - As proposed

Industrial Primary - As proposed

Industrial Transmission - As proposed

Option 2 - Residential Rate Class – 6.0% Increase

Scenario

Customer Charge

(/month)

Energy Charge

(/kWh)

Demand Charge

(/kW-month)

Current $10.00 $0.0684 None

Scenario 5 $12.50 $0.0708 None

Option 2 – Small General Service Rate Class – 6.0% Increase

Scenario

Customer Charge

(/month)

Energy Charge

(/kWh)

Demand Charge

(/kW-month)

Current $18.00 $0.0720 None

Scenario 3 $22.00 $0.0747 None

Option 2 - Irrigation Rate Class – 6.0% Increase

Scenario

Customer Charge

(/year)

Energy Charge

(/kWh)

Demand Charge

(/kW-month)

Current $180.00 $0.0730 None

Scenario 4 $200.00 $0.0771 None

R.M. 08/15/2017

Option 2 – Large Customer Rate Classes – 3.9% Increase

Customer

Charge (/mo)

Energy Charge

(/kWh)

Demand Charge

(/kW-month)

Large General Service Current $50.00 $0.0510 $5.45

Large General Service Proposed $50.00 $0.0510 $6.24

Industrial Primary Current $80.00 $0.0440 $5.75

Industrial Primary Proposed $80.00 $0.0440 $6.56

Industrial Transmission Current $150.00 $0.0350 $3.90

Industrial Transmission Proposed $150.00 $0.0367 $3.90

RESIDENTIAL: 5.5% Current COSA Scenario 1 Scenario 2 Scenario 3Average Usage 1,149 kWh $88.13 $97.66 $93.35 $93.39 $93.25

RS 10,12,22 Customer Charge 10.00$ 23.32$ 12.00$ 12.50$ 15.00$ Energy Charge (kWh) 0- 4,999 0.0680$ 0.0647$ 0.0708$ 0.0704$ 0.0681$ Energy Charge (kWh) [A] > 5,000 0.0720$ 0.0687$ 0.0748$ 0.0744$ 0.0721$

RS 13 Customer Charge [B] 2.00$ 2.40$ 2.50$ 3.00$ Energy Charge (kWh) 0- 4,999 0.0680$ 0.0708$ 0.0704$ 0.0681$ Energy Charge (kWh) [A] > 5,000 0.0720$ 0.0748$ 0.0744$ 0.0721$

RS 14 Customer Charge [B] 2.00$ 2.40$ 2.50$ 3.00$ Energy Charge (kWh) [C] 0- 4,999 0.0680$ 0.0708$ 0.0704$ 0.0681$ Energy Charge (kWh) [A], [C] > 5,000 0.0720$ 0.0748$ 0.0744$ 0.0721$

RS 15 Customer Charge 10.00$ 12.00$ 12.50$ 15.00$ Energy Charge (kWh) [D] 0- 4,999 0.0830$ 0.0858$ 0.0854$ 0.0831$ Energy Charge (kWh) [A], [D] > 5,000 0.0870$ 0.0898$ 0.0894$ 0.0871$

SMALL GENERAL: 5.5% Current COSA Scenario 1 Scenario 2Average Usage 1,342 kWh $114.62 $137.01 $121.71 $122.43

RS 20 Customer Charge 18.00$ 42.00$ 22.00$ 25.00$ Energy Charge (kWh) 0.0720$ 0.0708$ 0.0743$ 0.0726$

RS 25 Customer Charge 18.00$ 22.00$ 25.00$ Energy Charge (kWh) [D] 0.0870$ 0.0893$ 0.0876$

IRRIGATION: 5.5% Current COSA Scenario 1 Scenario 2Average Usage 3,954 kWh $303.64 $678.91 $320.64 $319.94

RS 50 Customer Charge 180.00$ 280.00$ 180.00$ 200.00$ Energy Charge (kWh) 0.0730$ 0.1658$ 0.0773$ 0.0767$

LARGE GENERAL: 4.6% Current COSAAverage Usage 22,680 kWh; 79 KW $1,637.23 $1,539.59 $1,710.70

RS 24 Customer Charge 50.00$ 47.00$ 50.00$ Energy Charge (kWh) 0.0510$ 0.0369$ 0.0510$ Demand Charge (kW) 5.45$ 8.30$ 6.38$

RS 26 Customer Charge 50.00$ 50.00$ Energy Charge (kWh) [D] 0.066$ 0.066$ Demand Charge (kW) 5.45$ 6.38$

RS 27 Customer Charge 50.00$ 50.00$ Energy Charge (kWh) 0.052$ 0.0510$ Demand Charge (kW) 5.45$ 6.38$

INDUSTRIAL - PRIMARY VOLTAGE: 4.6% Current COSAAverage Usage 735,020 kWh; 2,104 KW $44,518.88 $42,622.94 $46,517.68

RS 30 Customer Charge 80.00$ 77.00$ 80.00$ Energy Charge (kWh) 0.0440$ 0.0359$ 0.0440$ Demand Charge (kW) 5.75$ 7.68$ 6.70$

RS 37 Customer Charge 80.00$ 80.00$ Energy Charge (kWh) 0.0450$ 0.0440$ Demand Charge (kW) 5.75$ 6.70$

INDUSTRIAL - TRANSMISSION VOLTAGE: 4.6% Current COSAAverage Usage 3,870 MWh; 6,992 KW $162,875.49 $155,703.82 $170,228.85

RS 40 Customer Charge 150.00$ 123.00$ 150.00$ Energy Charge (kWh) 0.0350$ 0.0359$ 0.0369$ Demand Charge (kW) 3.90$ 2.38$ 3.90$

RS 47 Customer Charge 150.00$ 150.00$ Energy Charge (kWh) 0.0360$ 0.0369$ Demand Charge (kW) 3.90$ 3.90$

[A] Add $0.004/kWh for kWh > 5,000 [B] Discounted monthly Customer Charge; equal to 20% of RS 10 Customer Charge[C] A 10% discount will be applied on the monthly kWh Energy Charge[D] Add $0.015/kWh

October 2017 - 5.1% OVERALL Rate Change Impact by Class - OPTION 1

RESIDENTIAL: 6.0% Current COSA Scenario 4 Scenario 5 Scenario 6Average Usage 1,149 kWh $88.13 $97.66 $93.81 $93.85 $93.59

RS 10,12,22 Customer Charge 10.00$ 23.32$ 12.00$ 12.50$ 15.00$ Energy Charge (kWh) 0- 4,999 0.0680$ 0.0647$ 0.0712$ 0.0708$ 0.0684$ Energy Charge (kWh) [A] > 5,000 0.0720$ 0.0687$ 0.0752$ 0.0748$ 0.0724$

RS 13 Customer Charge [B] 2.00$ 2.40$ 2.50$ 3.00$ Energy Charge (kWh) 0- 4,999 0.0680$ 0.0712$ 0.0708$ 0.0684$ Energy Charge (kWh) [A] > 5,000 0.0720$ 0.0752$ 0.0748$ 0.0724$

RS 14 Customer Charge [B] 2.00$ 2.40$ 2.50$ 3.00$ Energy Charge (kWh) [C] 0- 4,999 0.0680$ 0.0712$ 0.0708$ 0.0684$ Energy Charge (kWh) [A], [C] > 5,000 0.0720$ 0.0752$ 0.0748$ 0.0724$

RS 15 Customer Charge 10.00$ 12.00$ 12.50$ 15.00$ Energy Charge (kWh) [D] 0- 4,999 0.0830$ 0.0862$ 0.0858$ 0.0834$ Energy Charge (kWh) [A], [D] > 5,000 0.0870$ 0.0902$ 0.0898$ 0.0874$

SMALL GENERAL: 6.0% Current COSA Scenario 3 Scenario 4Average Usage 1,342 kWh $114.62 $137.01 $122.25 $122.97

RS 20 Customer Charge 18.00$ 42.00$ 22.00$ 25.00$ Energy Charge (kWh) 0.0720$ 0.0708$ 0.0747$ 0.0730$

RS 25 Customer Charge 18.00$ 22.00$ 25.00$ Energy Charge (kWh) [D] 0.0870$ 0.0897$ 0.0880$

IRRIGATION: 6.0% Current COSA Scenario 3 Scenario 4Average Usage 3,954 kWh $303.64 $678.91 $322.23 $321.52

RS 50 Customer Charge 180.00$ 280.00$ 180.00$ 200.00$ Energy Charge (kWh) 0.0730$ 0.1658$ 0.0777$ 0.0771$

LARGE GENERAL: 3.9% Current COSAAverage Usage 22,680 kWh; 79 KW $1,637.23 $1,539.59 $1,699.64

RS 24 Customer Charge 50.00$ 47.00$ 50.00$ Energy Charge (kWh) 0.0510$ 0.0369$ 0.0510$ Demand Charge (kW) 5.45$ 8.30$ 6.24$

RS 26 Customer Charge 50.00$ 50.00$ Energy Charge (kWh) [D] 0.0660$ 0.0660$ Demand Charge (kW) 5.45$ 6.24$

RS 27 Customer Charge 50.00$ 50.00$ Energy Charge (kWh) 0.0520$ 0.0510$ Demand Charge (kW) 5.45$ 6.24$

INDUSTRIAL - PRIMARY VOLTAGE: 3.9% Current COSAAverage Usage 735,020 kWh; 2,104 KW $44,518.88 $42,622.94 $46,223.12

RS 30 Customer Charge 80.00$ 77.00$ 80.00$ Energy Charge (kWh) 0.0440$ 0.0359$ 0.0440$ Demand Charge (kW) 5.75$ 7.68$ 6.56$

RS 37 Customer Charge 80.00$ 80.00$ Energy Charge (kWh) 0.0450$ 0.0440$ Demand Charge (kW) 5.75$ 6.56$

INDUSTRIAL - TRANSMISSION VOLTAGE: 3.9% Current COSAAverage Usage 3,870 MWh; 6,992 KW $162,875.49 $155,703.82 $169,454.81

RS 40 Customer Charge 150.00$ 123.00$ 150.00$ Energy Charge (kWh) 0.0350$ 0.0359$ 0.0367$ Demand Charge (kW) 3.90$ 2.38$ 3.90$

RS 47 Customer Charge 150.00$ 150.00$ Energy Charge (kWh) 0.0360$ 0.0367$ Demand Charge (kW) 3.90$ 3.90$

[A] Add $0.004/kWh for kWh > 5,000 [B] Discounted monthly Customer Charge; equal to 20% of RS 10 Customer Charge[C] A 10% discount will be applied on the monthly kWh Energy Charge[D] Add $0.015/kWh

October 2017 - 5.1% OVERALL Rate Change Impact by Class - OPTION 2

RESIDENTIAL: 6.5% Current COSA Scenario 7 Scenario 8 Scenario 9Average Usage 1,149 kWh $88.13 $97.66 $94.27 $94.19 $94.05

RS 10,12,22 Customer Charge 10.00$ 23.32$ 12.00$ 12.50$ 15.00$ Energy Charge (kWh) 0- 4,999 0.0680$ 0.0647$ 0.0716$ 0.0711$ 0.0688$ Energy Charge (kWh) [A] > 5,000 0.0720$ 0.0687$ 0.0756$ 0.0751$ 0.0728$

RS 13 Customer Charge [B] 2.00$ 2.40$ 2.50$ 3.00$ Energy Charge (kWh) 0- 4,999 0.0680$ 0.0716$ 0.0711$ 0.0688$ Energy Charge (kWh) [A] > 5,000 0.0720$ 0.0756$ 0.0751$ 0.0728$

RS 14 Customer Charge [B] 2.00$ 2.40$ 2.50$ 3.00$ Energy Charge (kWh) [C] 0- 4,999 0.0680$ 0.0716$ 0.0711$ 0.0688$ Energy Charge (kWh) [A], [C] > 5,000 0.0720$ 0.0756$ 0.0751$ 0.0728$

RS 15 Customer Charge 10.00$ 12.00$ 12.50$ 15.00$ Energy Charge (kWh) [D] 0- 4,999 0.0830$ 0.0866$ 0.0861$ 0.0838$ Energy Charge (kWh) [A], [D] > 5,000 0.0870$ 0.0906$ 0.0901$ 0.0878$

SMALL GENERAL: 6.5% Current COSA Scenario 5 Scenario 6Average Usage 1,342 kWh $114.62 $137.01 $122.78 $123.50

RS 20 Customer Charge 18.00$ 42.00$ 22.00$ 25.00$ Energy Charge (kWh) 0.0720$ 0.0708$ 0.0751$ 0.0734$

RS 25 Customer Charge 18.00$ 22.00$ 25.00$ Energy Charge (kWh) [D] 0.0870$ 0.0901$ 0.0884$

IRRIGATION: 6.5% Current COSA Scenario 5 Scenario 6Average Usage 3,954 kWh $303.64 $678.91 $323.81 $323.10

RS 50 Customer Charge 180.00$ 280.00$ 180.00$ 200.00$ Energy Charge (kWh) 0.0730$ 0.1658$ 0.0781$ 0.0775$

LARGE GENERAL: 3.25% Current COSAAverage Usage 22,680 kWh; 79 KW $1,637.23 $1,539.59 $1,689.37

RS 24 Customer Charge 50.00$ 47.00$ 50.00$ Energy Charge (kWh) 0.0510$ 0.0369$ 0.0510$ Demand Charge (kW) 5.45$ 8.30$ 6.11$

RS 26 Customer Charge 50.00$ 50.00$ Energy Charge (kWh) [D] 0.0660$ 0.0660$ Demand Charge (kW) 5.45$ 6.11$

RS 27 Customer Charge 50.00$ 50.00$ Energy Charge (kWh) 0.0520$ 0.0510$ Demand Charge (kW) 5.45$ 6.11$

INDUSTRIAL - PRIMARY VOLTAGE: 3.25% Current COSAAverage Usage 735,020 kWh; 2,104 KW $44,518.88 $42,622.94 $45,949.60

RS 30 Customer Charge 80.00$ 77.00$ 80.00$ Energy Charge (kWh) 0.0440$ 0.0359$ 0.0440$ Demand Charge (kW) 5.75$ 7.68$ 6.43$

RS 37 Customer Charge 80.00$ 80.00$ Energy Charge (kWh) 0.0450$ 0.0440$ Demand Charge (kW) 5.75$ 6.43$

INDUSTRIAL - TRANSMISSION VOLTAGE: 3.25% Current COSAAverage Usage 3,870 MWh; 6,992 KW $162,875.49 $155,703.82 $168,293.75

RS 40 Customer Charge 150.00$ 123.00$ 150.00$ Energy Charge (kWh) 0.0350$ 0.0359$ 0.0364$ Demand Charge (kW) 3.90$ 2.38$ 3.90$

RS 47 Customer Charge 150.00$ 150.00$ Energy Charge (kWh) 0.0360$ 0.0364$ Demand Charge (kW) 3.90$ 3.90$

[A] Add $0.004/kWh for kWh > 5,000 [B] Discounted monthly Customer Charge; equal to 20% of RS 10 Customer Charge[C] A 10% discount will be applied on the monthly kWh Energy Charge[D] Add $0.015/kWh

October 2017 - 5.1% OVERALL Rate Change Impact by Class - OPTION 3

R.M. 08/15/2017

BEFORE THE BOARD OF DIRECTORS

OF THE COLUMBIA RIVER PEOPLE’S UTILITY DISTRICT

In the Matter of Setting Electric Rates

And Making Other Adjustments to the

Rate Schedules of the District

RESOLUTION

NO. 17-07

The above entitled matter came on regularly before the Board of Directors at its Regular

Meeting of August 15, 2017; and

It appearing to the Board that the 2017 Cost of Service Analysis (COSA) and Retail

Rate Design Review has been completed by the District’s independent rate consultant, EES

Consulting and the PUD staff; and

It further appearing to the Board that the 2017 COSA report recommended an overall

5.1% rate increase; and

It further appearing to the Board its desire to phase in the COSA recommended

customer charge increases resulting in an overall _____% rate increase, effective October

2017; and

It further appearing to the Board that a public hearing was duly held at the Regular

Board meeting of August 15, 2017, with proper public notice having been given; now,

therefore

IT IS HEREBY RESOLVED AND PROCLAIMED that all Rate Schedules be

adopted as revised; and

IT IS FURTHER RESOLVED that these new Rate Schedules so adopted shall become

effective with all bills rendered after October 1, 2017.

ADOPTED this Fifteenth day of August, 2017.

BOARD OF DIRECTORS

COLUMBIA RIVER PEOPLE’S

UTILITY DISTRICT

Approved as to Form: BY ____________________________ PRESIDENT

Clarke Griffin, LLC BY ____________________________

Attorneys At Law VICE-PRESIDENT

BY ____________________________ TREASURER

BY _______________________________ BY ____________________________

PHILIP GRIFFIN DIRECTOR

OF ATTORNEYS FOR THE DISTRICT BY ____________________________ DIRECTOR

R.M. 08/15/2017

ACTION ITEM BEFORE THE BOARD OF DIRECTORS

COLUMBIA RIVER PUD

AGENDA ITEM B-6

A Resolution Supporting HR 3144

August 15, 2017

BACKGROUND

Bonneville Power Administration markets the power generated by the Federal Columbia River Hydropower

System, a network of 31 dams in the Columbia River Basin. Because Columbia River PUD receives all of its

power from BPA, when BPA’s costs go up, our wholesale power rates can increase.

One area where BPA’s costs have continued to increase is in their funding for fish and wildlife programs that

are run by states, tribal, federal, and local governments, non-profit entities and others to implement hundreds

of actions to restore habitat, protect land and water, improve passage at the dams and operate state-of-the-art

salmon and steelhead hatcheries. These efforts have been effective, as evidenced by increasing salmon

returns and juvenile survival rates along the Columbia River system that are at or above the mandated 97%

survival threshold for passage.

As a BPA customer, CRPUD works closely with the Public Power Council, Northwest Requirements

Utilities, and other organizations to help BPA find ways to remain competitive while keeping wholesale

power costs affordable and stable. Currently, 10% of each CRPUD customer’s bill goes toward funding fish

and wildlife programs. In total, BPA has spent nearly $16 billion on fish and wildlife programs since 1978;

in recent years spending has averaged about $750 million annually.

One reason for these increasing costs is the ongoing litigation surrounding the Biological Opinions that

govern the operations of the federal hydropower system. In this litigation, the US District Court of Oregon

directed the federal agencies responsible for operation & maintenance of the federal system to conduct a

comprehensive review of hydro operations under the National Environmental Policy Act by 2022, to

complete a new Biological Opinion for operations of the federal system by the end of 2018, and to work with

the plaintiffs in the litigation to develop a plan for increased spill at the 8 main-stem dams on the Lower

Columbia & Snake Rivers. These competing directives will not have the benefit of the scientific analysis and

public input from the NEPA process, and running these processes simultaneously will strain extensive

federal resources. As such, they will increase costs for BPA customers, including CRPUD.

Concerned with these potential impacts, key members of the Northwest Congressional delegation,

Reps. Cathy McMorris Rodgers (R-WA), Jaime Herrera Beutler (R-WA), Dan Newhouse (R-WA), Kurt

Schrader (D-OR), and Greg Walden (R-OR) introduced a bipartisan proposal, H.R. 3144, that would

maintain current salmon protection measures and federal hydro system operations in the 2014 Biological

Opinion until a Court-ordered review of alternatives is complete.

H.R. 3144 would protect CRPUD ratepayers from added costs by keeping the current biological opinion in

place, without experimental spill tests, until the NEPA review is complete and a new biological opinion can

be completed that benefits from the findings in the NEPA analysis. This bill offers a creative solution that is

good for both listed salmon and the economy of the Northwest and Columbia County.

SUMMARY

Bonneville Power Administration is facing increasing cost pressures for its fish and wildlife spending due to

a number of competing processes ordered by the District Court of Oregon in the ongoing litigation over the

2014 Biological Opinion for the operations of the Federal Columbia River Hydropower System. To address

these issues, key members of the Northwest Congressional delegation have introduced a bipartisan proposal

R.M. 08/15/2017

to re-sequence the processes ordered by the courts into a logical order. H.R. 3144 would protect CRPUD

ratepayers from added costs by keeping the current biological opinion in place, without experimental spill

tests, until the NEPA review of the hydro system is complete and a new biological opinion can be completed

that benefits from the findings in the NEPA analysis. This bill offers a creative solution that is good for both

listed salmon and the economy of the Northwest and Columbia County.

OPTIONS

Option 1: Pass Resolution 17-08 Supporting H.R. 3144 – Federal Legislation addressing the Federal

Columbia River Power System Biological Opinion. Direct staff to author a letter to the Oregon

Congressional delegation urging support for H.R. 3144.

Option 2: Do not pass Resolution 17-08, but direct staff to author a letter to the Oregon Congressional

delegation urging support for H.R. 3144.

Option 3: Take no official action on H.R. 3144

STAFF RECOMMENDATION

Option 1. Pass Resolution 17-08 Supporting H.R. 3144 – Federal Legislation addressing the Federal

Columbia River Power System Biological Opinion. Direct staff to author a letter to the Oregon

Congressional delegation urging support for H.R. 3144.

R.M. 08/15/2017

BEFORE THE BOARD OF DIRECTORS

OF THE COLUMBIA RIVER PEOPLE’S UTILITY DISTRICT

In the Matter of Supporting H.R. 3144

- Federal Legislation addressing the

Federal Columbia River Power System

Biological Opinion

RESOLUTION

NO. 17-08

The above entitled matter came before the Board of Directors at its Regular Meeting of

August 15, 2017; and

WHEREAS, customers of Columbia River People’s Utility District of Deer

Island, Oregon, hereinafter referred to as “CRPUD”, receive 84 percent of their

electricity from the Federal Columbia River Power System (FCRPS); AND

WHEREAS, Hydropower provides 60 percent of the Pacific Northwest’s

electricity, of which the majority is produced by the FCRPS; AND

WHEREAS, hydroelectric dams also provide many benefits to the region,

including flood control, navigation, irrigation, and recreation: AND

WHEREAS, federal legislation requires the federal agencies responsible for the

management of the FCRPS, including the Bonneville Power Administration

(BPA), the US Army Corps of Engineers, and the Bureau of Reclamation, to

operate the hydro system in compliance with the Biological Opinion (BiOp)

approved by NOAA Fisheries in 2008/2010 and supplemented in 2014, AND

WHEREAS, the FCRPS Biological Opinion (BiOp) has successfully improved

fish passage with young salmon survival 97% on average at the eight Columbia

and Snake River dams; proving that both dams and fish can coexist; AND

WHEREAS, BPA has spent nearly $16 billion on infrastructure and fish and

wildlife mitigation projects since 1978; AND

WHEREAS, despite the success of the current FCRPS BiOp, in March 2017, the

United States District Court for the District of Oregon (Court) directed the federal

agencies to undertake a comprehensive review of hydro operations under the

National Environmental Policy Act (NEPA) and strongly urged the federal

agencies to include analysis of the removal, bypass or breaching one or more of

the four lower Snake River dams; AND

WHEREAS, the Court also directed the federal agencies to complete a new BiOp

in 2018; AND

R.M. 08/15/2017

WHEREAS, the Court also directed the parties in the BiOp litigation to work

together to develop a plan for additional spill during the juvenile migration

periods beginning in 2018; AND

WHEREAS, these competing directives will not have the benefit of the scientific

analysis and public input from the NEPA process, will increase costs for CRPUD

customers, and will strain extensive federal resources; AND

WHEREAS, H.R. 3144, “To provide for operations of the Federal Columbia

River Power System pursuant to a certain operation plan for a specified period of

time”, was introduced in the United States House of Representatives to ensure the

2014 Supplemental FCRPS BiOp remains in effect until 2022; AND

WHEREAS, the federal legislation would continue federal hydro operations

through September 30, 2022 or until the court-ordered, comprehensive

environmental NEPA process concludes, a new Biological Opinion is in place,

and pending judicial review is complete; AND

WHEREAS, the federal legislation would prohibit studies, plans or structural

modifications at the dams which would impair hydroelectric power generation or

navigation on the Columbia River; AND

IT APPEARING BEFORE THE BOARD that CRPUD supports this legislation

because it:

1. Offers a creative solution that is good for both listed salmon and the economy

of the Northwest and Columbia County.

2. Provides relief in the endless litigation of federal hydro system operations by

directing the federal agencies to implement the current federal salmon plan,

known as the 2014 Supplemental BiOp. This BiOp was vetted and supported

by the Obama Administration’s top scientists and has resulted in wild salmon

numbers trending significantly upward due to changes in operations and the

installation of new passage technologies.

3. Provides time for the federal agencies to complete the court-ordered NEPA

environmental review process analyzing federal hydro system operations and

focuses the general agencies limited resources on getting that process right.

Without the legislation, the agencies would be compelled to author the new

2018 BiOp without the benefit of the new science and public input provided

by the comprehensive NEPA review.

4. Avoids experiments or spill tests at the eight Columbia and Snake dams, and

studies and modifications at the dams which would restrict electrical

generation, which would create uncertainties in BPA’s power costs and supply

and raise Northwest electric customers’ rates.

R.M. 08/15/2017

IT IS HEREBY RESOLVED AND PROCLAIMED by the Board of Directors for

Columbia River People’s Utility District, that CRPUD supports federal legislation

H.R. 3144 introduced to provide for operations of the Federal Columbia River

Power System pursuant to a certain operation plan for a specified period of time;

ADOPTED this 15th day of August, 2017.

BOARD OF DIRECTORS

COLUMBIA RIVER PEOPLE’S

UTILITY DISTRICT

Approved as to Form: BY _______________________________ PRESIDENT

Clarke Griffin, LLC BY _______________________________

Attorneys At Law VICE-PRESIDENT

BY _______________________________ TREASURER

BY _______________________________ BY _______________________________

PHILIP GRIFFIN DIRECTOR

OF ATTORNEYS FOR THE DISTRICT BY _______________________________ DIRECTOR

R.M. August 15, 2017

ACTION ITEM BEFORE THE BOARD OF DIRECTORS

COLUMBIA RIVER PUD

AGENDA ITEM

August 15, 2017 B-7

“Bid Authorization – Flagging Services”

BACKGROUND

We have an on-going need to hire a flagging contractor to provide traffic control for our line crews and

contract tree trimming crews. We would like to utilize a contractor that is prequalified by entering into a

unit price contract in advance for flagging services. The contractor will only be paid for the actual hours

worked.

Our unit price contract for flagging services with K & D Services will expire on December 31, 2017.

SUMMARY

We spent the following on flagging services for our line crews and contract tree trimming crews:

2014 $101,447 K & D Services

2015 $124,938 K & D Services

2016 $113,963 K & D Services

OPTIONS

Option 1) – Authorize staff to solicit sealed bids for flagging services for 2018 and 2019 with the bid

opening to be held at the office of Columbia River PUD on September 20, 2017 at 3:30 pm

pacific prevailing time.

Option 2) – Hire flagging contractors on a short call basis using a rotating list.

Option 3) – Request price quotes from available flagging contractors on a job-by-job basis.

Option 4) – By written mutual agreement, extend the existing contract with K & D Services.

Option 5) – Hire new employees to provide traffic control for our line crews and contract tree trimming

crews. It would be very difficult to schedule our work to keep these employees busy and, at

times, we need 6-flaggers to meet our needs. I believe this would be a more expensive

option rather than using a flagging contractor.

STAFF RECOMMENDATION

Option 1) – Authorize staff to solicit sealed bids for flagging services for 2018 and 2019 with the bid

opening to be held at the office of Columbia River PUD on September 20, 2017 at 3:30 pm

pacific prevailing time.

Daily Outage Report

Starting: 7/1/2017 Ending: 8/1/2017

Columbia River PUD

Date/Time

the outage

started

Cause of

the outage

Location

of the

outage

Avg

Length of

the outage

Number

of

customers

Customer

hours

outDescription

7/1/2017 11:15:00 SQUIRREL ON TRANSFORMER

5.85.0SE 3 ST, SCAnimal

1.15 5.85.0 5.8

7/3/2017 7:14:00 P B/O LOAD BREAK CUTOUT

21.515.0COLUMBIA BLVD, SHEquipment

1.43 21.515.0 21.5

7/4/2017 11:03:00 B/O SECONDARY SPLICE AT TRANSFORMER

2.11.0FERN CREST RD, 29338, RNEquipment

2.12 2.11.0 2.1

7/4/2017 4:54:00 P B/O LOAD BREAK CUTOUT

1.21.0SAULSER RD, 58891, SHEquipment

1.20 1.21.0 1.2

7/5/2017 6:15:00 P TREE LIMB ON LINE

23.822.0LARSON RD, RNTree

1.08 23.822.0 23.8

7/6/2017 1:31:00 A UG PRIMARY FAULT

31.65.0NEW KIRK RD, SCEquipment

6.32 31.65.0 31.6

7/9/2017 8:41:00 A FUSE FATIGUE AT OH TRANSFORMER CUTOUT

1.12.0BANKSTON RD, SCEquipment

0.55 1.12.0 1.1

7/12/2017 11:30:00 SQUIRREL-PHASE TO PHASE AT CUTOUTS

4.02.0S BACHELOR FLAT RD, WNAnimal

2.00 4.02.0 4.0

7/15/2017 10:35:00 SQUIRREL ON OH TRANSFORMER

3.83.0SW FIR LN, SCAnimal

1.25 3.83.0 3.8

7/16/2017 3:39:00 SERVICE LINE RUBBED IN HALF BY A TREE BRANCH

2.41.0STONE RD, 33124, WNTree

2.43 2.41.0 2.4

7/18/2017 8:50:00 BIRD FLEW INTO LINES

81.7114.0DIKE RD, RNAnimal

0.72 81.7114.0 81.7

Thursday, August 3, 2017 Page 1 of 2

Date/Time

the outage

started

Cause of

the outage

Location

of the

outage

Avg

Length of

the outage

Number

of

customers

Customer

hours

outDescription

7/20/2017 1:00:00 TREE FELL ON LINE

2.22.0BRANCH RD, SCTree

1.08 2.22.0 2.2

7/21/2017 8:36:07 PATROLLED LINES-FOUND NOTHING

82.780.02nd ST, CCUnknown

1.03 82.780.0 82.7

7/21/2017 10:47:00 B/O CUTOUT AT TRANSFORMER

4.06.01st ST, CCEquipment

0.67 4.06.0 4.0

7/23/2017 12:48:00 PATROLLED LINES FOUND NOTHING

2.42.0COLUMBIA RIVER HWY, DIUnknown

1.20 2.42.0 2.4

7/26/2017 12:33:00 LOGGER FELL A TREE ON LINE - BILLING

4.92.0AXEL RD, SHMan

2.47 4.92.0 4.9

7/27/2017 4:03:00 SQUIRREL ON OH TRANSFORMER

0.91.0TIDE CREEK RD, 30349, DIAnimal

0.87 0.91.0 0.9

Grand Totals: 276.02641.05

Thursday, August 3, 2017 Page 2 of 2

Summary Outage Report

Starting: 7/1/2017 Ending: 08/01/2017

Columbia River PUD

This Period Year To Date YTD Last Year

Length Of Outage

Number of Customers Out

Number of Customer Hours

Average Hours of outage per customer

27.57 180.85 210.67

5080

8909.74995682942324.15

10648264

276

1.753.971.05

Instances

Cause Code

Total: 17 249

DescriptionDescription Current YTD Current YTD

Summary

Feeder:

Animal 125

Equipment 396

Man 61

Other 00

Tree 393

Unknown 82

Thursday, August 3, 2017 Page 1 of 2

Summary Outage Report

Starting: 7/1/2017 Ending: 08/01/2017

Columbia River PUD

Total: 17 245

DescriptionDescription Current YTD Current YTD

Dutch Canyon East 00

Dutch Canyon North 11

Dutch Canyon South 110

Dutch Canyon West 212

Fairgrounds Bach Flat 72

Fairgrounds Sausler 222

Fairgrounds St Helens 10

Goble East 71

Goble West 351

Nys Dike 61

Nys Fernhill 592

Nys USG 00

Rainier Timmoney 00

Rosehill Deer Island 272

Rosehill St Helens 10

Scappoose Honeyman 90

Scappoose West 112

St. Helens 13 80

St. Helens Houlton 31

St. Helens Warren 20

St. Helens Yankton 50

Tarbell Scappoose 20

Tarbell St. Helens 30

Tarbell Warren North 10

Thursday, August 3, 2017 Page 2 of 2

R.M. August 15, 2017

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

July

-07

July

-08

July

-09

July

-10

July

-11

July

-12

July

-13

July

-14

July

-15

July

-16

July

-17

YT

D J

uly

-07

YT

D J

uly

-08

YT

D J

uly

-09

YT

D J

uly

-10

YT

D J

uly

-11

YT

D J

uly

12

YT

D J

uly

13

YT

D J

uly

14

YT

D J

uly

-15

YT

D J

uly

-16

YT

D J

uly

-17

Cu

sto

mer

Ou

tag

e H

ou

rsOUTAGE REPORT - JULY 2017

WITHOUT MAJOR STORMS

Trees/Weather/Unknown Equipment Man Animal Power Supply

PEAK LOAD VS TEMPERATURES

JULY 2017

Note: Temperatures taken at Scappoose Industrial Airport R.M. August 15, 2017

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

Peak Load (MW) Minimum Temp (°F) Maximim Temp (°F)

Columbia River PUDProposed Bad Debt Write-offs

August 2017

Connect Final Bill

Residential Date Date Deposit Amount

1 12/10/1999 05/30/2017 0.00 158.24

2 7/1/2005 05/17/2017 0.00 179.69

* 3 1/1/2010 05/08/2017 0.00 222.88

4 6/1/2012 05/02/2017 0.00 195.59

5 3/18/2013 05/17/2017 200.00 34.88

6 11/5/2013 05/02/2017 100.00 34.90

7 8/15/2014 05/08/2017 0.00 520.58

8 11/17/2014 05/11/2017 200.00 155.89

9 6/3/2016 05/17/2017 200.00 174.01

10 8/5/2016 05/15/2017 200.00 82.10

11 1/31/2017 05/24/2017 0.00 664.44

12 3/15/2017 05/17/2017 200.00 241.07

Under $20 0.00

Total Residential $1,100.00 $2,664.27

Commercial/Industrial

Total Commercial/Industrial $0.00 $0.00

Miscellaneous Billing Original Balance

Total Miscellaneous Billing $0.00

Total Proposed Write-Offs $2,664.27

2017 Summary August 2017 2017 Y-T-D 2016

Total Write-Offs $2,664.27 $14,130.10 $20,804.20

Paid Write-Offs -$659.76 -$2,768.44 -$6,832.96

Net Write-Offs $2,004.51 $11,361.66 $13,971.24

Misc Billing Write-Offs $0.00 $6,893.66 $14,693.94

Total Write-Offs $2,004.51 $18,255.32 $28,665.18

* Deceased

** Bankruptcy

R.M. 08/15/17

1

Staff Report

Regular Board Meeting

August 15, 2017

G e n e r a l M a n a g e r

1. Senate Bill Blocks Proposed BPA Transmission Assets Sale: The Senate Appropriations Committee reported on a fiscal year 2018 energy budget bill on July 20 blocking the Trump Administration’s proposal to sell BPA’s transmission assets. The Senate bill indicates the White House’s proposed sale of BPA and other federal power-transmission assets, such as Southeastern Power Administration, the Southwestern Power Administration, and the Western Area Power Administration, would “increase costs for millions of consumers, decrease grid reliability, and reduce services to rural communities.” It rejects the Department of Energy's proposal and states the proposal would violate the Urgent Supplemental Appropriations Act and wouldn't be allowed unless authorized by an Act of Congress.

BPA is a self-funded nonprofit that markets wholesale power from 31 federal hydroelectric projects in the Northwest, as well as the Columbia Generating Station nuclear-power plant near Richland, WA. It operates almost 75% of the high-voltage transmission in its service area that includes Oregon, Washington and Montana. CRPUD purchases 100% of its power from BPA.

2. BPA CTIO Retires: BPA Chief Technology Innovation Officer, Terry Oliver, will retire August 12. Oliver worked for Bonneville since 1981 and was appointed as the agency’s first CTIO in June 2005. He was tasked with restarting and managing the agency’s research and development program, as well as creating technology road maps to help articulate its research agenda. BPA has not made an announcement as to a replacement.

3. Carbon Market on Oregon Legislature’s 2018 Agenda: Thirty one legislators have already proposed a bill for next year’s short session that calls for creating a carbon market by 2021. Senate Bill 1070 calls for establishing a Greenhouse Gas Cap and Investment Program Oversight Committee, along with the creation of a Climate Investment Account, within the State Highway Fund. Proceeds will come from the auction of carbon-emission allowances. The bill would also create a Climate Investment Fund and a Climate Investments in Impacted Communities Advisory Committee to direct funding from the sale of carbon credits. Should the bill succeed, it will create a favorable competitive edge for BPA's secondary market power sales as approximately 86% of BPA's generating power comes from hydro dams and wind (source: 2016 BPA Fuel Mix). This will keep the Tier 1 rate low, which will help CRPUD maintain its low rates. CRPUD purchases most of its power from BPA at the Tier 1 rate, which is BPA's wholesale rate.

R e g i o n a l I s s u e s

4. NRU, PPC Meetings: Libby Calnon attended the August 2, 2017 NRU Board of Directors Meeting, the August 2 PPC Members Forum, and the August 3 PPC Executive Committee Meeting. Discussion topics included:

BPA Final ROD: BPA’s final Record of Decision in the BP-18 Rate Case was released on July 26, 2017. BPA’s power rates will increase, on average, by 5.4%, and its transmission rates will decrease, on average, by 0.7%. For CRPUD, both

R.M. 08/15/17

2

rates are increasing. CRPUD will pay 4.29% more for power and 0.37% more for transmission. The major drivers of the price increase include the declining value of secondary sales due to low wholesale market power prices, flat or declining loads for both preference and direct service industry customers, increasing transmission costs, and increasing embedded program costs.

BPA Quarterly Business Review: Megan Stratman from NRU reported that BPA’s forecast for cash reserves for the power business line is about $11 million at the end of their fiscal year, on September 30, 2017. There will be no automatic cost-recovery adjustment clause triggering on October 1, 2017, as long as the business line ends the fiscal year with more than $0 in cash reserves. Additionally, BPA’s net revenues are about $65 million below forecast due to lower than expected preference customer and direct service industry loads. Continuing cost control efforts are underway to mitigate the loss in revenues.

BiOp Litigation & Spill Surcharge: Terry Flores from NW River Partners provided an update on the litigation related to the Biological Opinion for the Federal Columbia River Hydropower System. District Court Judge Michael Simon held a status conference on August 2 to hear the progress the parties are making toward developing a plan for supplemental spill for the 2018 juvenile salmon migration season. The parties reported generally good progress and are expected to have a more thorough report at the September status conference. Once the spill plan is known, BPA will calculate the financial impact of the plan and apply a spill surcharge to its customers’ bills to recover these costs. BPA is working to identify potential internal cost reductions that can be used to offset the cost of added spill.

HR 3144: In July, a bipartisan coalition of representatives from Oregon and Washington, led by Cathy McMorris Rodgers and including Jaime Herrera Beutler (R-WA), Dan Newhouse (R-WA), Kurt Schrader (D-OR), and Greg Walden (R-OR), introduced House Resolution 3144, a bill to re-sequence the actions ordered by Judge Simon in the litigation over the 2014 Federal Columbia River Hydropower System Biological Opinion. Judge Simon has ordered the parties in the case to develop a plan to implement additional spill, and has ordered the federal agencies to develop a new biological opinion by 2018 and to complete a NEPA analysis by 2022. The bill would postpone the changes to spill and leave the 2014 biological opinion in place until the NEPA analysis is complete, so that these processes can be completed using the findings from that thorough scientific analysis.

NOAA Fisheries Draft Environmental Impact Statement on Harvest: NOAA Fisheries recently issued their draft EIS on salmon and steelhead harvest under the US v. Oregon Management Agreement on the Columbia River. This federal court proceeding enforces and implements the reserved fishing rights of the Nez Perce, Umatilla, Warm Springs, Yakama, and Shoshone-Bannock tribes. The agreement governs the amount of harvest allowed by tribal and non-tribal programs, to attempt to balance protections for endangered species act listed species with tribal trust responsibilities and to support fishing opportunities in Oregon, Washington, and Idaho.

BPA Fish & Wildlife Budgets: BPA customers fund the work of about 600 fish and wildlife projects annually to mitigate for the construction of the Federal Columbia River Hydropower System. BPA is working to make these projects operate more cost-effectively and efficiently and to that end, has requested that project sponsors and contractors identify opportunities to eliminate unnecessary

R.M. 08/15/17

3

work efforts and to reduce overall program costs. The costs savings from these efforts would help offset the additional costs of the supplemental spill program, if and when it is implemented.

Columbia River Treaty: The lead negotiator and assistant negotiator for the Columbia River Treaty talks have both left their posts for other assignments. This will require another round of education once a new negotiator is named. Meanwhile, the Treaty Power Group is continuing to work to keep the process moving forward.

Transmission Planning Deep Dive: Blake Weathers reported that the BPA/NRU meetings focused on individual customer groups by study area are continuing, and the conversations have been positive. BPA is looking for more cost-effective and efficient ways to meet load growth.

Pro Forma Tariff GAP Analysis: BPA is working to realign its transmission tariff more closely with the industry-standard open access transmission tariff (OATT), and to improve service to network integration (NT) customers. A GAP analysis has identified about 40 gaps to close in the areas of queue management, the transmission study process, the scope and attributes of NT service, the available transfer capacity calculation, the provision of hourly-firm-point-to-point transmission service, and the treatment of some ancillary services and real power losses. Both NRU and PPC staff continue to emphasize the need for BPA to consider customer impacts and benefits in weighing alternative approaches.

Residential Exchange Credit: The existing Residential Exchange Lookback Credit expires at the end of FY 2019. This credit stems from overpayments made by BPA to the IOUs in the early 2000s after BPA’s public utility customers challenged the BPA/IOU settlement in court and won. The individual impacts of this credit expiring vary by utility. For CRPUD, the expiration of the credit will be offset by a Tier 1 rate decrease, leaving a net decrease of $0.11/MWh.

Cost Containment for the Corps of Engineers and Bureau of Reclamation: The House Appropriations Committee included language referencing the need for the Corps of Engineers and Bureau of Reclamation “to work with BPA to drive costs down to promote BPA’s long-term competitiveness…” The Corps and the Bureau are consuming an increasing portion of BPA’s budget over time, driving up BPA rates. Additionally, BPA is looking at how costs are accounted for at Federal dams, to ensure that hydro operations are paying the appropriate share of costs.

C u s t o m e r A c c o u n t s

5. I would like to thank the board and all staff for the support over the past year. I feel very lucky to have gotten to form many great working relationships in the organization. Today is my last day and I truly have appreciated the opportunity to be part of the utility. ~Mikka

C o m m u n i t y & P u b l i c R e l a t i o n s

6. August Communications Topics

Calendar photo contest

Tips for summer cooling

Call before adding electric load

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4

Survey results

Keep drones away from power lines

My Fair Lady Queen named

7. September Communications Topics

GLOW

Public Power Week

Rate comparison graph

Rate changes in October

National Preparedness Month

8. Recent Sponsorships

Chief Ralph Painter Memorial Run

Rainier Days in the Park

Keep it Local Columbia County

Shoestring Community Players 9. Community Heroes: Christina Sullivan was selected as our Community Hero for July.

The category was for Community Festival Organizers. Christina was picked for her work organizing 13 Nights on the River. The category for August is “Dog Days of Summer,” or people who help with pets and animals.

10. Cooling Center: During the 100+ degree temperatures August 2-4, we opened the CRPUD Community Room from 12-6 p.m. to give customers a quiet place to find some relief from the heat. Several employees helped set up, communicate about, and staff the cooling center including Tim Lammers, Kyle Boggs, Libby Calnon, Tracy Pinder, Annette Noelcke, and Monica Cannon. Thanks to all for going the extra mile in service to our customers.

11. Hydro Campaign Aid Station at Wings & Wheels Half Marathon: During the July

BPA webinar on the Hydro Flows Here campaign, we were recognized for our joint fair booth with Clatskanie PUD and other efforts to promote this important regional campaign, which showcases the benefits of hydropower to the Pacific Northwest. We continued our campaign with the manning of an aid station at the Wings & Wheels Half-Marathon on August 5. Special thanks to Kyle Boggs and Rachel Swanson for getting up early on a Saturday to represent the PUD in the community.

12. Black Tie & Blue Jeans: Several CRPUD representatives participated in the 2017 Black Tie & Blue Jeans Summer Social & Auction on August 5. Libby Calnon, Michelle Lamma, Rachel Swanson, Jennifer Nelson, and retiree Sherry Welter worked in the check in/out tent to serve guests, and Kyle Boggs and Lonny Lee helped with tent set up on Thursday morning prior to the event. Representing the PUD in the crowd were Jake and Dani Carter, Mark and Debbie Reed, Rob and Annie Mathers, and Branden and Katie Staehely. The biennial event raises money for the Chance to Become Scholarship Program, which provides scholarships to students from all five Columbia County School Districts.

13. Food Drive: Columbia River PUD and Clatskanie PUD faced off in a summer food

drive that resulted in $7,344 being collected to benefit local food banks. Clatskanie PUD collected $4,724, and Columbia River PUD collected $2,620 and 63 pounds of food. The donations will go to Columbia Pacific Food Bank, HOPE of Rainier, and Turning Point of Clatskanie.

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5

14. Stuff the Bus: On the heels of our hugely successful food drive, CRPUD employees

are now collecting donations for United Way of Columbia County’s Stuff the Bus Campaign. This campaign collects school supplies for children in Columbia County who cannot afford basic school supplies. We give to all three school districts in our service area. CRPUD employees have been the biggest donors to this local program in recent years.

15. August 19 Volunteer Day: CRPUD employees, retirees, family members, and friends

are invited to participate in a community-wide effort to repaint the Chamber of Commerce office in St. Helens on August 19. Contact Kyle Boggs to sign up.

E n e r g y S e r v i c e s

16. Energy Efficiency Incentives: In June the PUD paid out $10,235 in energy efficiency incentives and invoiced BPA for $20,182 of related reimbursements (including a Performance Payment of $0.04 per kWh saved). The associated energy saving measures will save 56,573 kWhs a year.

17. Energy Efficiency Projects: The PUD handed out 834 LEDs at the County Fair and

81 LEDs at Rainier Days in the Park. Several commercial and industrial energy efficiency projects will soon be coming to a close. Overall, participation in residential EE projects is remaining steady compared to recent years.

18. NWPPA’s Administrative Professionals Conference: Nicolle Prehn, our Energy

Services Department Administrative Assistant, attended NWPPA’s recent 2 ½ day Administrative Professionals Conference.

E n g i n e e r i n g & O p e r a t i o n s

19. The 2017 budget includes the following capital projects:

Bunker Hill Road: Replace direct buried underground power lines. Sealed bid requests were sent out July 19th with a bid opening date of August 8th at 3:30 pm.

Bid results will be presented during the board meeting along with an action item to award to the lowest responsible bidder.

Paradise Moorage: Replace underground cable, replace old transformers on docks, and install oil containment to reduce environmental risk. We have sent out the bid documents with a closing date of August 3rd.

Goble Voltage Regulators: Correct N-1 voltage issues during peak loads. The voltage regulators are anticipated to arrive in October. We have started ordering additional materials and finalizing the design.

McDermott Road: Replace pole and conductor that have reached the end of its service life. This will improve reliability and safety. We are approximately 50% complete with the design.

NE Sawyer Street: Replace underground cable where cable failure repairs have resulted in abandoning a loop that ensures reliability. We are approximately 10% complete with the design.

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6

West Lane Road Widening: Transfer facilities to new pole locations and upgrade overhead wire to improve capacity for future load growth. Crews have started work and should be done around August 18th.

Scappoose Substation OCB: Replace the two oil circuit breakers in the Scappoose Substation. We received the new breakers just in time for our annual maintenance for the Scappoose Substation. During routine testing of our relays one of the older OCB breakers had failed. Our crews then replaced the breakers. If this failure had occurred during operation it would have resulted in an outage of the entire power transformer.

Hazen Road (Phase 1): Upgrade overhead power lines due to load growth and to improve system reliability. Our crews have started construction and will be complete towards the middle of September.

20. Sidewalk Repair Bid: At the July board meeting we requested approval to go out for

bid for sidewalk repairs in St Helens and Scappoose with an anticipated bid to be greater than $50,000; however, we received a bid from Semling Construction, Inc. for sidewalk repairs at a value of $47,850.

21. Orr Road: A project we were looking to start and complete in 2018 became a priority

in 2017 with the growth we are seeing in the Goble area. Our crews have started construction and will be complete towards the middle of August.

H u m a n R e s o u r c e s

22. Recruitment:

Human Resources Specialist – Part-Time: We posted the Human Resources

Specialist – Part-Time position on May 1st with a deadline of June 1st at 5:00 pm.

We received 24 applications. We tested five applicants on July 27th, 28th, and the

31st. We are planning on conducting interviews on August 25th.

Customer Accounts Supervisor: Mikka Mullican has announced that she will be

leaving the PUD on August 15th to pursue another job opportunity. While we are

sad to see her go, we are happy for Mikka and wish her the very best with this new

endeavor.

We have reached out and made an offer to Kristen Dean from the pool of applicants we received during our previous search for the Customer Accounts Supervisor. Kristen has accepted our offer and will begin on August 9th. Kristen is a local Rainier resident who comes to us from the City of Gresham as a Business Analyst/Administrative Assistant II. She has over 10 years of experience in supervising employees while at the St Helens Federal Credit Union and the Lower Columbia Longshoremen’s Federal Credit Union. We’re excited to have Kristen join the CRPUD team. We want to thank Mikka for doing such a great job and for graciously agreeing to stay another week to help us with the transition.

23. Healthcare Benefits Renewal:

Sonia met with our healthcare benefits broker on July 27th to review proposals for our stop loss insurance. We received two proposals, one of which was from our current stop loss carrier. Both proposals included a terminal liability provision that would allow for an extra three months of claims that were incurred, but not charged, to be paid should we move from self-insured to fully-insured. This

R.M. 08/15/17

7

provision would charge an extra $1.25 per employee per month during the 12 months contract and an additional two months of specific premium in the event we decided to exercise the terminal liability option at the end of the 12 months. Our current stop loss carrier’s proposal is a little over a 15% increase, while the second proposal would have an increase of a little over 70%. Sonia notified our healthcare benefits broker that we would accept the current stop loss carrier’s proposal with the renewal date of September 1, 2017.

I n f o r m a t i o n T e c h n o l o g y

24. GIS Mapping Systems: Data conversion is making progress. Integration points between Cayenta customer information data and Futura will be defined soon. The scheduled delivery date for the Futura mapping system is September 11, with staking and outage management to follow soon after.

25. Email Server Migration: Exchange server migration is complete and the old email server has been decommissioned.

26. Cyber Security Training: The time frame has been extended to accommodate the last few employees. Currently 43 employees have completed Security Awareness and USB attack training as well as acknowledging our Electronic Communication and Social Media policies.

S p e c i a l R e c o g n i t i o n

27. Employee of the Month: Daniel Avrit was recognized as our July Employee of the Month for demonstrating superior internal customer service as he works to keep our computers happy, and for providing excellent support and advice.