City of Columbia, Missouri

Meeting Minutes

Water and Light Advisory Board

701 E Broadway

Conference Room

1A/1B

Wednesday, April 17, 2024

8:00 AM

Regular

I. CALL TO ORDER

Mr. Coffin called the meeting to order at 8:02 a.m.

Staff: Sarah Talbert, Assistant Director Utilities-Rates and Fiscal Planning; David

Sorrell, Utilities Director; Erin Keys, Acting Assistant Director-Electric; Todd

McVicker, Acting Utility Services Manager; Steve Hunt, Assistant Director-Water;

Jim McDonald, Assistant Director of Finance; Matt Nestor, Public Information

Specialist; Eric Hempel, Sustainability Manager; Ron Wyble, Power Production

Superintendent; Ben Edes, Energy Services Manager; Chris Kisch, Administrative

Technician II; Kim Wolfmeier, Administrative Technician II.

MPUA Members: Connie Ford, John Twitty, Steve Stodden

Public: Jim Windsor, Mike Murphy, Mark Haim, Carolyn Amparan, Dick Parker

4 - Thomas Jensen, David Switzer, Gregg Coffin and Philip Fracica

1 - Amanda Jacobs

Present:

Absent:

II. INTRODUCTIONS

A round robin was done for introductions.

III. APPROVAL OF AGENDA

Mr. Tom Jensen made a motion to approve the agenda as submitted with a

second by Mr. Phillip Fracica. Motion passed unanimously.

IV. APPROVAL OF MINUTES

The March 13, 2024 meeting minutes were approved as submitted with a motion

by Mr. Gregg Coffin and a second by Mr. Tom Jensen. Motion passed

unanimously.

Attachments: Meeting Minutes Draft 03 13 24

V. GRAINBELT UPDATE (MPUA)

Mr. Twitty, with Missouri Public Utility Alliance (MPUA), stated that things were not

moving along as well as they had hoped. He then introduced Mr. Stodden, Chief

Energy Officer, MPUA. He said the hope was to have power from Kansas by 2025,

but that had been moved to a later date of 2029. Missouri originally had been allotted

500 megawatts (MW) of power, but an upgrade to 2,500 MW had been proposed.

Currently there was 35 MW of allotted power to Columbia. Service rights transferred

from Kansas to Missouri. This had to be in place by 2026, or costs may be

re-negotiated. The 500 MW would be brought in first, the 2000 MW will follow.

Mr. Coffin asked when MPUA would negotiate service, to be competitive enough to

get at a reasonable price. Mr. Stodden said that the plan was to get in early for

negotiating with the hope to go directly to the grid. Mr. Jensen stated that the

transmission charges would not be a cheap impact.

VI. FINANCIAL REPORTS as available

a) Review Annual Comprehensive Financial Report (ACFR)

Mr. McDonald briefed us on what was in the report. Responsibility of the auditor

was to ensure statements were correct, and implement internal control to prevent

fraud. The report covered how the City did fiscally the prior year, with different funds

listed, and covered how much City debt there was. There was a breakdown of major

account funds, a balance sheet, with the report going through assets and liabilities,

listing the fund’s balance. Mr. Coffin stated that interest earned, and all money

owned was in one pot. A calculation was done monthly, and transfers were made,

and investment returned on basis of cash flow. Ms. Talbert stated that bond cash was

separate. Mr. Coffin asked if the City had the capacity to take on more debt. Ms.

Talbert answered that the city as a whole had the capacity to take on more debt,

Water and Light may not. She also stated that Standard and Poor’s (S & P) had

dinged us on amount of debt ratio to net coverage. Mr. Coffin asked if auditors had

any plans to perform a performance base audit for utilities. Mr. McDonald replied

that was a specialized audit and currently there were only plans for a normal audit.

Attachments: FY 2023 ACFR

b) Monthly Financial Reports

Ms. Talbert informed the Water and Light Advisory Board (WLAB) that electric had

a cash increase, so overall revenue was up, due to electric rate increases that took

effect July 1, 2023. Water had a cash decrease. She stated that Utility operations

tended to be low. Salaries and wages were higher due to wage increases that the

City Manager proposed mid-year 2023, and with the FY 2024 budget. Materials,

supplies and power purchase were higher due to additional transmission expenses to

Sikeston, and a large payment of $2.8 million, to MISO for the week of the cold

snap.

Attachments: Monthly financial statement comments - February 2024

Electric Statements-February 2024

Water Statements-February 2024

Summary Change in Billed usage for Water and Electric

VII. DIRECTOR'S REPORTS

a) FY 2025 Water & Electric CIP Water and Light Advisory Board (WLAB

Feedback)

Mr. Sorrell communicated to the WLAB about the meeting he was a part of two

weeks prior about revenue projects for the entire state. It was noted adjustments

would be needed as expenses were more than the revenue. Mr. Coffin commented

on the need to implement more incremental rate increases. Mr. Switzer stated that it

was a bad decision to do increases every few months for the next four years. He said

there was a need for an affirmative plan to be constructed to be financially solvent,

and not just squeak by. Mr. Coffin said there needed to be a plan to adjust rates for

Mr. Sorrell declared that it was the same problem as before. Capacity was back, but

still paying a higher cost until July 1, 2025. Mr. Wyble said we paid another year

from the Sikeston plant, with the added cost as before. Mr. Sorrell mentioned the

large weekly payment of $2.8 million dollars to the Midcontinent Independent System

Operator (MISO) for the week of the cold front. Mr. Coffin stated that he believed if

the WLAB could work on if they could figure it out for more discussion at the May

meeting. Mr. Switzer said that the last rate increase was in 2018. Mr. Switzer

asserted that he wanted a commitment from Council to make a plan and follow

through. Mr. Coffin said they needed recommendations to get a handle on the current

situation. Ms. Talbert announced that once there was a recommendation, there would

be a special meeting held to discuss the recommendations.

Attachments: Electric - Proposed FY 2025 CIP

Electric - FY 2025 CIP Projects with changes between FY 2024

budget and FY 2025 budget

Water - Proposed FY 2025 CIP

Water - FY 2025 CIP Projects with changes between FY 2024 budget

and FY 2025 budget

Water and Electric CIP balances 12-31-23

b) Annual DSM Report

Mr. McVicker submitted the Demand Side Management report, noting the program

offered incentives to customers to modify their energy consumption patterns. This

report included the demands for both commercial and residential customers.

Renewable Purchase (RP) projections were based on savings for 2018 and 2019,

which were the highest savings to date. Mr. Coffin stated that government resources

were also coming available and the State would have a rebate plan. Mr. McVicker

explained those funds would not become available until 2026. Mr. Coffin expressed

that he was a firm believer in efficiency; and the city could inform customers about the

rebates from government sources, as well as any other programs available. He did

question whether the building permits had enough energy standards, though the city

did decide to adopt the international codes.. Mr. McVicker replied that the codes

were “pretty good; but the decision was made to hold off implementing them until

2024. He also stated that they were offering endorsements with the program. Mr.

Edes said the rebate was for kilowatt (kW) hours used. Mr. McVicker reported the

biggest participation was with the lighting program. Mr. McVicker voiced that

revamping the program and the Federal assistance would bring in more customers to

the solar program. Mr. Jensen said he would happily endorse this program. Mr.

McVicker said there was a map available that would provide homeowners with the

homes that had been through the program, and been scored, as long as the property

owners agree.

Attachments: 2023 USD Report

c) Proposed Energy Efficiency Program Revisions (WLAB Feedback)

Staff provided a summary of the Fiscal Year (FY) 2024 Efficiency programs to being

revised and added. New programs consist of:

Efficient Electrification incentive

Heat Pump Water Heater-Residential/Commercial

Smart thermostat rebate

Daylight Harvesting

Commercial Kitchen Equipment

Revamped Programs:

Home Performance with Energy Star program

Attic Plus

Central AC/Heat Pump replacement rebates-Residential/Commercial (5 tons)

Commercial Lighting

Drive (Variable Frequency Drives portion only)

Customer rebate

Commercial AC Heat Pump (6 tons)

Solar (distributed generation) rebate

Existing Programs continuing the same:

Residential Electric Vehicle (EV) Charger rebate

Income eligible programs

Efficient Flush

Efficient Irrigation

Programs discontinued:

Geothermal Heat Pump rebate-Residential/Commercial

Solar Water Heaters

Motors (Motors Portion only)

Attachments: 2024 USD Program Revamp WLAB Summary

d) Council Item Update

Ms. Talbert explained the Council Items from the March 1st, March 18th, April 1st,

and April 15th Council meetings. From the March 1st Council meeting two council

bills were approved and two resolutions approved. The March 18th Council meeting

had one resolution approved. The April 1st Council meeting, there was one special

public comment by Ms. Carolyn Amparan, and five Council bills were introduced. At

the April 15th Council meeting, there was one special comment by Mr. Peter

Schneeberger, and four Council bills presented for a second read.

Attachments: Council Item Updates - March & April 2024

e) Bluegrass

Ms. Keys updated the WLAB on the repower of the Bluegrass Ridge Wind Farm.

The agreement between Constellation who operates the wind farm, included both

capacity and energy allocation from the wind farm that has 27 generators onsite that

each produce 2.1 MW. The City was allocated 11.1 percent of the total energy

produced. The city paid a fixed price of $55.00 per megawatt-hour (MWh) for the

term of the agreement, which was set to expire on June 1, 2027. Constellation was

repowering the wind farm, upgrading the equipment, and additional MW produced

each year. An option to continue to receive 11.1 percent of the production or a

reduced percentage, equivalent to the historical average of MWh. If the City chose

the reduced percentage, an amendment would need to be included to the existing

contract. Ms. Keys stated the results would not be available for two years. Mr.

Coffin noted if we continue to receive the 11.1%, without having to renegotiate now,

there would be a hope that the company selling the power would need to be more

competitive and reduce prices.

Mr. Gregg Coffin moved to receive power with Bluegrass Ridge Wind Farm, and

proceed as proposed. Mr. Thomas Jensen seconded the motion. Motion passed

unanimously.

Attachments: WLAB Bluegrass Repower Memo April 2024

f) Water Plant Tour (May 9th @ 9 am)

Ms. Talbert stated that she would get more information. Mr. Coffin said appropriate

clothing should be worn for the tour.

VIII. CHAIRMAN'S REPORTS

a) Review Renewable Ordinance

i) Presentation (Carolyn Amparan)

Renewable Energy Modification input: Defined as to include facilities generating

electricity from naturally replenishing sources like wind, solar, geothermal, and waves

of tides. This excluded fossil fuels, nuclear technology, incineration of municipal and

medical waste, or combustion of biomass. Renewable energy credits also

disapproved.

Mr. Coffin asked about methane from manure. Ms. Amparan replied that was not

approved to produce for utility use, but individual farms could use their own methane.

Mr. Coffin then asked about methane from landfill gases on a small scale. Ms.

Amparan said existing landfill gas would be okay but not a plan to practice for future

use. Ms. Amparan stated the Sierra Club and the 100 percent Coalition support

moving the reporting timeline to the fiscal year. She reported the Sierra Club

supported extending the target for 100 percent renewable energy beyond 2030 to

2035.

ii) Boone Solar Energy Overlay District (SEOD) Update

Mr. Fracica reported on the status of the SEOD. He said there were 1000 acres to

be used and that they were going to

look at it again in eight months to evaluate and see about enlargement; which would

be helpful.

Attachments: WLAB - Renewable Ordinance Review

City Renewable Energy Ordinance

WLAB Renewable Ordinance Recommendations

Staff Challenges & Recommendation with Renewable Ordinance

2023 Renewable Energy Plan FINAL

b) Rolling Calendar

The Renewable Energy Ordinance and Jim Windsor’s customer input was included

on the May agenda. The FY 2024 WLAB goals moved to the June agenda. After a

brief discussion, the WLAB made the decision that the Annual Renewable Energy

Plan would be a review only in May and for discussion in June.

Attachments: WL Rolling Agenda April

IX. PUBLIC EMAIL COMMENTS

None.

X. GENERAL COMMENTS BY PUBLIC, MEMBERS AND STAFF

Mr. Windsor discussed the unfortunate decision not to discuss arbitrage on the bond

funds. He said there was roughly $11,000,000 that needed be moved so there would

be no question of arbitrage. Mr. Windsor encouraged the WLAB to get in touch with

Mr. Darrell Dunlap, the Utilities Superintendent in Fulton, MO, adding he had

experience on the Smart Leaders process. He said he was discouraged with not

seeing any progress from the board related to that.

XII. NEXT MEETING DATE

March 8, 2024

XIII. ADJOURNMENT

The meeting adjourned at 11:20 a.m. with a motion by Mr. Tom Jensen and a

second by Mr. Mr. Phillip Fracica. Motion passed unanimously.

To submit questions or comments to the Water & Light Advisory Board, please email

wlabpublic@como.gov.

All media inquiries should be submitted to Matt Nestor at Matthew.Nestor@como.gov.

Members of the public may attend any open meeting. For requests for accommodations related to

disability, please call 573-874-CITY (573-874-2489) or email CITY@CoMo.gov. In order to assist staff in

making the appropriate arrangements for your accommodation, please make your request as far in

advance of the posted meeting date as possible.

USB DRIVES PROHIBITED: Due to cybersecurity concerns, flash drives and other media devices

are no longer permitted for delivering files or presentation materials. A speaker who desires to

display a presentation must upload the presentation, in advance, to the city network using an

upload portal. To upload your files and learn more, visit CoMo.gov/upload. (Effective Jan. 1,

2023)