Thursday, February 11, 2010
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 February 11, 2010, at 10:00 a.m.
Present were Directors M. J. Cavanaugh, N. P. Dodge Jr., J. K. Green, G. C. Hall, A. L. McGuire, J. R. Thompson, F. J. Ulrich and D. D. Weber. Also present were W. G. Gates, President; M. C. Bodammer, Corporate Secretary; and S. M. Bruckner and T. F. Meyerson, General Counsel for the District. Mr. Green, Board Chair, presided, and Mrs. Bodammer, Corporate Secretary, recorded the minutes. Other members of Management present were D. J. Bannister, T. J. Burke, M. I. Doghman, E. E. Easterlin, A. J. Minks, D. F. Widoe, G. R. Williams, J. J. Hanson, M. R. Jones, M. W. Nichols, J. T. Hansen, S. L. Hutcherson and K. A. Roth. Others present included K. S. Dowdy, D. F. Begley and M. A. Salerno from I.B.E.W. Local #1483; Mark Welsch; and approximately 11 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 February 5, 2010; 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 December 2009 Comprehensive Financial and Operating Report and that the minutes and the excused absence of Director Dodge for the last meeting be approved. The vote was recorded as follows: McGuire – Yes; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Abstain; Green – Yes; Hall – 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. 5814 approves the award of Request for Proposal; No. 3224 – North Omaha Unit 5 Variable Frequency Drives – to Malloy Electric Industrial Services in the amount of $593,478. Director Hall led the discussion and acknowledged this replacement equipment will improve personnel safety, maintain unit reliability, decrease maintenance costs and reduce auxiliary power usage, the combination of which will result in a project payback of 3.8 years. Following the discussion, the vote was recorded as follows: McGuire – Yes; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Yes; Hall – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5815 approves the 2010 Standing Committee assignments for the Board of Directors. Board Chair Green read the assignments for each committee as proposed. The vote was recorded as follows: McGuire – Yes; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Yes; Hall – Yes; and Ulrich - Yes. The motion carried.
RESOLUTION NO. 5816 approves the appointment of a Corporate Officer. Director Weber led the discussion announcing the Board’s decision to appoint Jon T. Hansen to the position of Vice President – Energy Production and Marketing and Assistant Secretary. Mr. Hansen will fulfill certain responsibilities performed by Vice President Widoe, who will be retiring from service. Director Weber discussed Mr. Hansen’s work history since joining the District in 1983 and stated his educational background and other professional qualifications. Mr. Hansen and his wife, Beth, were in attendance and were introduced to the group. The vote was recorded as follows: McGuire – Yes; Thompson – Yes; Weber – Yes; Cavanaugh – Yes; Dodge – Yes; Green – Yes; Hall – Yes; and Ulrich - Yes. The motion carried.
Copies of the foregoing resolutions are filed in the District’s Corporate Records file.
The next order of business was an update on Sustainable Energy and Environmental Stewardship activities. Board Chair Green called upon Marc Nichols, Division Manager – Sustainable Energy and Environmental Stewardship, who provided a PowerPoint presentation on the various activities and accomplishments to date.
Mr. Nichols covered four major areas of activity during 2009 including renewable energy, energy efficiency, environmental stewardship and education/communication. He reported on the cumulative costs for wind studies ($441,000), demand-side research and programs ($1,590,000), hybrid vehicles ($13,000), internal green efforts ($639,000), and public information ($146,000). The 2009 costs for these programs total $2,829,000. As indicated, most of these costs are in the areas of energy efficiency and demand-side management.
Mr. Nichols discussed the progress of various renewable energy projects. He reported that Department of Energy Federal funding was recently awarded for a solar PV and wind project at Creighton University that will allow the project to move forward with an anticipated completion date of June 2010. The university will be using the project to develop a new renewable energy curriculum. The Elkhorn Ridge project, Valley wind turbine and the methane gas generated at Elkhorn together generated 129,500 megawatt hours which saved 94,200 tons of carbon dioxide. He commented the Flatwater project is currently underway in Richardson Country and is scheduled to become operational in late 2010.
Thereafter, Mr. Nichols highlighted the major energy efficiency programs implemented in 2009. A savings of 1.5 megawatts has been realized from 65 various lighting projects. He said a residential air-conditioning control pilot was proven not to be customer friendly and therefore a different pilot project utilizing different technology will be conducted in 2010 for possible implementation in 2011. LB1001 allowed for provisions to help improve the energy efficiency of 21 low income households during 2009 and these improvement efforts will continue for additional households in 2010. Energy efficiency upgrades for three OPPD buildings resulted in a reduction of 195 kilowatts. He described a new rooftop heat pump technology that has the potential to reduce demand by up to 50% resulting in 20-50% energy savings. A small pilot project was developed in 2009 and a full pilot is planned for 2010 to determine whether these savings are possible. The combination of all OPPD projects resulted in energy savings of 7 megawatts in 2009.
Mr. Nichols highlighted various educational programs that were established including a curriculum in Millard’s elementary schools that teaches children to become energy efficient. OPPD’s Energy Information Center worked with over 800 people in 2009 which shows the level of public interest in this resource. Additionally, Energy Star ratings have generated much interest among builders and developers. The OPPD Green Team has worked diligently in 2009 to develop new ways for the District to become more sustainable such as implementing projects that increase conservation awareness including projects that promote paperless information processing. He reported Omaha by Design implemented a program entitled the “Environmental Element” to incorporate sustainable measures into the City of Omaha’s master plan and OPPD employees have been assisting in this effort.
Mr. Nichols said the District currently has 26 hybrid vehicles, including the only two plug-in hybrid vehicles in the state, and early findings indicate very good fuel savings and mileage. OPPD’s transmission and distribution group implemented a program in mid-2009 to reduce idling time in parked vehicles. This effort has resulted in estimated fuel savings of 15,900 gallons of diesel fuel equating to 168 tons of carbon dioxide saved. Several questions were raised by directors concerning hybrid vehicle technology and future product development. A copy of the presentation is appended to these proceedings.
Following the presentation, Board Chair Green provided an opportunity for those in attendance to address the Board on any items of District concern and, there being no further business, the meeting adjourned at 10:31 a.m.
A. J. Minks M. C. Bodammer
Assistant Secretary Corporate Secretary