August 13, 2009
The regular meeting of the Board of Directors of the Omaha Public Power District was held in the Board Room on the Atrium Level of Energy Plaza East, on August 13, 2009, at 10:00 a.m.
Present were Directors M. J. Cavanaugh, N. P. Dodge Jr., J. K. Green, G. C. Hall, J. R. Thompson, F. J. Ulrich and D. D. Weber. Director McGuire was absent. Also present were W. G. Gates, President; M. C. Bodammer, Corporate Secretary; and S. M. Bruckner, General Counsel for the District. Mr. Ulrich, Board Chair, presided, and Mrs. Bodammer, Corporate Secretary, recorded the minutes. Other members of Management present were D. J. Bannister, T. J. Burke, E. E. Easterlin, A. J. Minks, D. F. Widoe, G. R. Williams, J. J. Hanson, M. R. Jones and D. Petrus. Others present included Lynn Moorer (attorney from Lincoln); Mark Welsch; D. F. Begley and M. A. Salerno from IBEW Local Union #1483; Robert Simon from Siemens Energy Inc. and two additional customer-owners and employees of the District.
The Corporate Secretary read the following:
“Notice of the time and place of this meeting was publicized by notifying the area news media; by publicizing same in the Omaha World-Herald and Outlets; by displaying such notice on the Arcade Level of Energy Plaza since August 7, 2009; and by mailing such notice to each of the District’s Directors on that same date.
“A copy of the proposed agenda for this meeting has been maintained, on a current basis, and is readily available for public inspection in the office of the District’s Corporate Secretary.
“Additionally, a copy of the Open Meetings Law is available for inspection in the public meeting book located in this meeting room.”
It was moved and seconded that the Board reviewed the June 2009 Comprehensive Financial and Operating Report and that the minutes and the excused absence of Director Cavanaugh for the last meeting be approved. The vote was recorded as follows: Weber – Yes; Cavanaugh – Abstain; Dodge – Yes; Green – Yes; Hall – Yes; McGuire – Absent; Thompson – Yes; and Ulrich - Yes. The motion carried.
Thereafter, the Corporate Secretary read the following:
“Persons wishing to address the Board on a particular item are asked to approach the microphone as that agenda item is discussed. Comments will be heard following Board discussion of the item and prior to a vote by the Board.”
The following resolutions were then read, and upon motion duly seconded, were placed on roll call. The vote on each resolution is indicated following the description of that resolution.
RESOLUTION NO. 5792 approves the Engineer’s Certification and authorizes Management to negotiate and enter into a contract to provide equipment and materials for the replacement of the diesel generator excitation/voltage regulators and control upgrades at an estimated project cost of $835,000. Following discussion, the vote was recorded as follows: Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Yes; Hall – Yes; McGuire – Absent; Thompson – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5793 authorizes Management to implement a new Net Metering Service Rider and modify the existing Standby Service Rate Schedule and Service Regulations to be effective September 1, 2009 in compliance with the new Nebraska net metering law. Director Hall inquired whether any customers have expressed interest in the program. Vice President Burke replied representatives from the District’s energy services and sustainable energy areas have been working together to meet with interested customer-owners to ensure they understand the District’s policies, procedures, practices and safety activities related to OPPD’s electric system. He also commented the OPPD website will be updated with useful information concerning net metering requirements and sustainable energy. Chairman Ulrich asked how this action will affect customers’ electric usage rates and whether there is a standby charge if electricity is not used for a certain period of time. Vice President Easterlin replied the customer will continue to be served under the normal residential rate and will pay the rate as posted in the rate schedule. If the total energy generated by a qualified facility exceeds the customer’s total energy requirements during a certain billing period, the customer is credited for the excess amount at a rate equal to the utility’s avoided cost of electric supply. He added there is no connection fee and no backup fee for generators with a capacity of 25 kilowatts or less that use qualified sustainable energy resources, but there are potential fees for generators above 25 kilowatts. Following the discussion, the vote was recorded as follows: Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Yes; Hall – Yes; McGuire – Absent; Thompson – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5794 authorizes the award of Request for Proposal No. 3094 – North Omaha Station Unit 3 Generator Auxiliary Transformer – to WEG Electric Corp. in the amount of $178,800. Following discussion, the vote was recorded as follows: Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Yes; Hall – Yes; McGuire – Absent; Thompson – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5795 authorizes the award of Request for Proposal No. 3093 – Generator Stator Rewind and Exciter Refurbishment for Nebraska City Station Unit No. 1 – to Siemens Energy, Inc. in the amount of $11,072,494 for the generator stator rewind and exciter refurbishment and award of a separate contract to ABB Inc. in the amount of $265,850 for the voltage regulator. The combined total of the two contracts is $11,338,344. Director Thompson requested clarification of the base bid proposal and the alternate bid proposal from Siemens Energy, Inc. Vice President Widoe explained that Siemens possesses an equipment component for the exciter which may be refurbished in advance and delivered that would save approximately ten days of lost NC1 generation. The component that is removed from the OPPD plant becomes the next refurbished component in the program for another utility. He also affirmed this practice is common within the industry for many types of components. Following the discussion, the vote was recorded as follows: Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Yes; Hall – Yes; McGuire – Absent; Thompson – Yes; and Ulrich - Yes. The motion carried.
Copies of the foregoing resolutions are filed in the District’s Corporate Records file.
There being no further business, the meeting adjourned at 10:19 a.m.
A. J. Minks M. C. Bodammer
Assistant Secretary Corporate Secretary