REGULAR MONTHLY BOARD MEETING AGENDA

Transcription

1 January 29, CALL TO ORDER: 9:30 AM 2. PLEDGE OF ALLEGIANCE REGULAR MONTHLY BOARD MEETING AGENDA 3. ROLL CALL/DETERMINATION OF QUORUM 4. APPROVAL OF AGENDA 5. RECOGNITION OF GUESTS 6. BUSINESS WITH MEMBER GUESTS (5 minutes per Guest) a. Information requests by members/outside parties 7. ACTION ITEMS a. Approval of Minutes (minutes are uploaded to the "Extras" folder within Board Book online) b. Approval of December Membership List 3 8. GENERAL MANAGER'S UPDATE - Mr. Joseph Sanchez a. Business Services & Finance - Mr. Ricky Bejarano 1) December 2015 Financials 2) Finance Committee Report - Mr. Johnny Jaramillo b. Directives from prior BOT Meeting 1) Potential transfer of 115KV line to Tri-state 2) Rate Rider Reconciliations 9. BOARD REPORTS a. Tri-State Report - Mr. Lucas Cordova 4 b. Statewide (NMRECA) Report - Mr. Charlie Trujillo NEW BUSINESS 11. EXECUTIVE SESSION - Mr. John Tapia 12. ADJOURN 2

2 MINUTES REQUIRED APPROVAL DURING JANUARY S BOARD MEETING (Minutes are uploaded to the EXTRAS tab in BoardBook.org. Executive Session minutes are handed out to each BOT for review) 11/12/15 Insurance Ad Hoc Committee Meeting 12/09/15 IT Ad Hoc Committee Meeting 12/11/15 Regular Board Meeting 12/17/15 Tree Trimming Ad Hoc Committee Meeting EXECUTIVE SESSION MINUTES REQUIRING REVIEW TO APPROVE AT FEBRUARY S BOARD MEETING None 2

3 NEW MEMBERSHIPS DISTRICTS TOTALS DECEMBER 2015 DEC DISTRICT 1 7 DISTRICT 2 12 DISTRICT 3 3 DISTRICT 4 15 DISTRICT 5 23 DISTRICT 6 21 TOTAL NEW MEMBERSHIPS 81 REFUNDED MEMBERSHIPS 89 TOTAL MEMBERSHIPS NET NEW MEMBERSHIPS % OF GROWTH 0.18% MONTHLY TOTALS YTD TOTALS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC NET NEW MEMBERSHIPS TOTAL NEW SERVICES TOTAL CONNECTS TOTAL DISCONNECTS TOTAL DISCONNECTS FOR NON-PAY NET NEW CUSTOMERS MONTHLY TOTALS YTD TOTALS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC NET NEW CUSTOMERS TOTAL ACTIVE CUSTOMERS % OF GROWTH 0.12% 0.12% 3

4 January 2016 Micheal McInnes, From the CEO This month, staff reported on the development of the 150-megawatt Carousel Wind Project, which is the association s largest single renewable energy facility. The board approved the power purchase agreement for the project in late 2013 and construction began in March This past November, Tri-State began receiving discounted test energy from the facility up to the limits of the current transmission system. We will receive low-priced test energy until the project becomes commercial upon the completion of the Burlington-Wray transmission project in early June. Transmission availability remains a significant issue in adding new resources. We continue to see strong performance from our solar and wind renewable energy projects, although it remains a challenge at times to manage the volatility of these resources. Tri-State renewable energy sales to members was 26 percent of energy in November. We also discussed with the board that with the MATS rule remanded to EPA by a federal court, our administrative and legal options to address controls for Nucla Station are exhausted. Therefore, we are moving forward to install controls before the April 2016 compliance deadline. Also, the New Mexico PRC and FERC have approved the plan to close two units at San Juan Generating Station, which is a significant step toward our exit of the power plant. The Member Renewables and Distributed Generation Advisory Council will hold a webinar on Jan. 19, preceding the next member managers meeting on Jan Mike From the Chairman and President This month, NRECA board members Joe Martin, who serves as president of the Mountain View Electric board, and David Spradlin, manager of Springer Electric, spoke to the Tri-State board about the importance of participating in the Action Committee for Rural Electrification (ACRE). ACRE, the federal Political Action Committee (PAC) of NRECA, supports candidates for the U.S. House and Senate, both those in office now and those running for office, who will speak for and protect the interests of electric cooperatives and their member-owners. Participation in ACRE can also support statewide efforts. I greatly appreciate the board members and staff who participate in ACRE and state programs, as these are an important component of our efforts to mitigate the seemingly endless assault from unjustified and unworkable legislation and regulation. I encourage all our directors to participate in the ACRE program. I want to thank the board of Columbus Electric for taking some of their valuable time to participate in the member board orientation program last month. The board will hold its next strategic planning session next Monday and Tuesday, Jan We will discuss a range of issues, including resource planning and the Clean Power Plan. As always, please contact me regarding these or any other matters at or rick.gordon@tristategt.org. Rick 4

5 Clean Power Plan update presented to the board Staff provided an update on carbon regulation and the EPA s Clean Power Plan (CPP) at the January board meeting. An agreement was reached among 195 countries attending the United Nations Climate Change Conference in Paris. Nothing in the agreement is legally binding and there are no enforcement provisions. Implications for the U.S. include a pledge of $3 billion a year, but Congress has not appropriated any funds. The U.S. commitment is to reduce emissions by 26 percent below 2005 levels by While the U.S. is not bound legally by the Paris deal to meet the requirements, there will be strong international pressure to meet the commitments. U.S. commitments will not be met solely by the Clean Power Plan and other existing and proposed rules. Tri-State is a party to two active proceedings in the D.C. Circuit Court, including litigation challenging the final 111(d) rule (Clean Power Plan) and litigation challenging the final 111(b) New Source Performance Standards for new, modified and reconstructed units. Other groups also petitioned the EPA directly to reconsider the rule asking the agency to reconsider the rule administratively. At year-end, there were 41 petitions for review of the CPP from 150 parties. There are 27 states that have filed suit. NRECA and 39 cooperatives, including Tri-State and Basin, have filed suit. Twenty-four trade associations representing 80 percent of the U.S. economy have also filed suit. Labor unions have also challenged the rule. In support of the rule, there are ten motions to intervene from 53 parties, including 18 states. Sixty-seven parties total support the EPA rule. Staff continues to engage with and meet with state officials and participate in stakeholder meetings. On Oct. 23, 2015, EPA proposed a federal plan and model trading rules to implement the CPP. Comments are due on Jan. 21, Tri-State plans to submit comments on the federal rule. The EPA has proposed Clean Energy Incentive Program (CEIP) as part of the CPP. States would have the option to use the CEIP to incentivize early investments in wind and solar power generation and energy efficiency measures in low-income communities, with EPA in return providing matching allowances or Emission Rate Credits. In EPA s proposed federal plan and model trading rules, the EPA solicited comments on the design and implementation of the program. Tri-State is participating in calls and meetings, reviewing the draft program and working with NRECA to evaluate. Tri-State is developing communications and outreach strategies to address the CPP and development of state plans. View the presentation on the director s BoardBooks app and the Member Information Center. (Continued on page 3) 5 2

6 (Continued from page 2) Operations summary for November Coal fleet generation availability was 83 percent and accounted for 63 percent of total power supply. Gas generation was over budget and 1.7 percent of power supply. The average capacity factor for Kit Carson Windpower, Colorado Highlands Wind and Cimarron Solar was 31 percent. Renewable generation (wind and solar) at Tri-State peak was 187 MW (53 percent capacity factor). Renewable generation was 26 percent of member sales and 21 percent of total power supply. Member energy sales volumes were 1.8 percent below budget. Non-member energy sales volumes were 52.3 percent below budget. View the presentation on the director s BoardBooks app and the Member Information Center. (Continued on page 4) Financial and operational performance The financial report can be viewed on the director s BoardBooks app and Member Information Center. Operating Budget (thousands) Sales November 2015 Year to date Actual Budget Actual Budget Variance Members 85,607 86,806 1,024,894 1,070,578 ($45,684) Non-members 10,437 17, , ,625 (58,087) Other operating revenue 3,519 3,613 42,429 41,117 1,312 Total operating revenue $99,563 $107,920 $1,180,861 $1,283,320 ($102,459) Power production 36,323 45, , , ,084 Purchased power 22,616 21, , , Fixed cost 26,924 23, , ,996 (9,442) Other expenses 14,777 15, , ,083 10,237 Total operating expenses $100,640 $106,793 $1,137,117 $1,245,484 $108,367 Operating margins $(1,077) $1,127 $43,744 $37,836 $5,908 Non-operating income (3,036) 1,585 13,217 14,084 (867) Net margins ($4,113) $2,712 $56,961 $51,920 $5,041 Member and non-member sales Energy (GWh) 1,247 1,270 14,373 15, % AverageDemand (kw-mo) 1,726 1,782 19,672 20, % Non-member energy (GWh) % 6

7 (Continued from page 3) Upcoming meetings and events The board strategic planning session is January The Member Renewables and Distributed Generation Advisory Council Webinar is January 19, before the member managers meeting begins The next member managers meeting is January in Westminster Next month s board meeting is February

8 COMMENTARY January 15, 2016 Published by the New Mexico Rural Electric Cooperative Association N E W S Volume 23, No. 01 Co-ops Receive ACRE Recognition NMRECA president, Chuck Pinson, presented trustees from several electric co-ops with certificates for participating in ACRE for ACRE was formed in 1966 with the mission of making the voice of rural electric cooperative consumers heard in the U.S. Congress. ACRE is celebrating 50 golden years in Be a part of this golden anniversary. For questions or how you can make a contribution to ACRE, contact Trish Padilla Continental Divide Electric 100% Board and Manat tpadilla@nmelectric.coop or 505- agement: L-R: Arsenio Salazar, Secretary-Treasurer, Conti nental Divide Electric and Chuck Pinson, NMRECA President Farmers Electric 100% Board and Management L-R: Lance Adkins, General Manager, Farmers Electric and Chuck Pinson, NMRECA President Lea County Electric 100% Board, Management and Spouse Participation: L-R: Robert Caudle, Trustee, Lea County Electric and Chuck Pinson, NMRECA President Sierra Electric 100% Board and Management L-R: George Biel, Treasurer, Sierra Electric and Chuck Pinson, NMRECA President Otero County Electric 100% Management NMRECA Calendar January and February 2016 Springer Electric 100% Board and Management Century Club: L-R: Tim Morrow, Vice President, Springer Electric and Chuck Pinson, NMRECA President New Mexico Rural Electric Cooperative Association 100% Board and Management: L-R: Keven J. Groenewold, Executive Vice President and General Manager, NMRECA and Chuck Pinson, NMRECA President 8 January 19: Legislative Session begins at noon, Santa Fe January 21-22: Supervisors Meeting, Albuquerque February 4-5: NMRECA Board Meeting, Santa Fe February 14-17: NRECA Annual Meeting, New Orleans, LA February 18: Legislative Session adjourns at noon, Santa Fe February 27: Central Valley Electric Cooperative Annual Meeting, Artesia

9 Government-in-Action Youth Tour Packets Due A reminder to the electric cooperatives participating in the Government-in- Action Youth Tour: Completed packets are due no later than February 19, It is important all materials are received by the specified date so all accommodations can be finalized in a timely manner. Delays in submitting the applications by the deadline will inevitably increase the cost of expenses for the tour. Please make sure each application is complete. If you have questions, please call the office at ; or Evelyn Vigil (evigil@nmelectric.coop) or Mary Margaret (mweideman@nmelectric.coop). ATTENTION Long Rope Safety Award Nominee information is due Monday, February 1, 2016 Call Ed Rougemont at for details. Concern for Community: Co-op Principle 7 A family received plenty of holiday cheer thanks to NMRECA staff who pooled resources to help the family during Christmas. L-R: Keven J. Groenewold, Evelyn Vigil, Mary Margaret Vigil-Weideman, Trish Padilla, and Ed Rougemont. Not pictured: Tom Condit and Susan M. Espinoza. The 2016 NMRECA Legislative Almanac Your go-to-guide to keep you in touch with your state senator and representative. Copies will be available around January 22 the following ways: NMRECA State Capitol (pdf) App Store or Google Play (scan QR code at bottom, right-handside of this page to download app now) SAVE THE DATES National Rural Electric Cooperative Association Legislative Conference May 1-4, 2016 Hyatt Regency Washington Washington, DC As soon as registration and hotel reservation information is provided by NRECA, details will be sent via and will be included in future board books. Attending the NRECA Annual Meeting in February? While there, say Hi to Felix Apodaca. He is New Mexico s Youth Leadership Delegate who is sponsored by Sierra Electric Co-op. New Mexico Rural Electric Cooperative Association Annual Meeting May 24-26, 2016 The Lodge At Sierra Blanca & The Ruidoso Convention Center Ruidoso, NM Formal invitations will be sent the second week of March, which will include event and hotel information. Details will also be included in the March board book. Contact Evelyn Vigil at or evigil@nmelectric.coop NMRECA Board of Directors The New Mexico Rural Electric Cooperative Association provides legislative and educational services for the 18 cooperatives that deliver electric power to New Mexico s rural areas and small communities. Each cooperative has a representative on the association s board of directors. Charles Pinson, President... Central Valley Electric Cooperative, Artesia George Biel, Vice President...Sierra Electric Cooperative, Elephant Butte Jerry Smith, Secretary-Treasurer...Kit Carson Electric Cooperative, Taos Leandro Abeyta...Central New Mexico Electric Cooperative, Mountainair William C. Miller, Jr... Columbus Electric Cooperative, Deming Arsenio Salazar... Continental Divide Electric Cooperative, Grants Lance R. Adkins...Farmers Electric Cooperative, Clovis Harold Trujillo... Jemez Mountains Electric Cooperative, Española Robert Caudle...Lea County Electric Cooperative, Lovington Robert Baca...Mora-San Miguel Electric Cooperative, Mora Tomas G. Rivas...Northern Río Arriba Electric Cooperative, Chama Preston Stone... Otero County Electric Cooperative, Cloudcroft Jerry W. Partin... Roosevelt County Electric Cooperative, Portales Joseph Herrera...Socorro Electric Cooperative, Socorro Gary Rinker...Southwestern Electric Cooperative, Clayton Tim Morrow...Springer Electric Cooperative, Springer Wayne Connell...Tri-State G&T Association, Westminster, Colorado Charles G. Wagner... Western Farmers Electric Cooperative, Oklahoma David Spradlin, NRECA Director...Springer Electric Cooperative, Springer NMRECA Contact Information 614 Don Gaspar Avenue...Phone: Santa Fe, NM Fax: Keven J. Groenewold, Executive Vice President... kgroenewold@nmelectric.coop Susan M. Espinoza, Editor...sespinoza@nmelectric.coop Tom Condit, Assistant Editor... tcondit@nmelectric.coop Trish Padilla, Grassroots Coordinator... tpadilla@nmelectric.coop Ed Rougemont, Self-Insurer s Fund Administrator...erougemont@nmelectric.coop Evelyn Vigil, Office Manager...evigil@nmelectric.coop Mary Margaret Vigil-Weideman, Admin. Assistant... mweideman@nmelectric.coop Comments, and Mailing Address Updates Send to... sespinoza@nmelectric.coop If you would like to receive an electronic version of Commentary instead of a hard copy, please contact Susan M. Espinoza. Thank you. Scan QR code to download Legislative Almanac app 2 9