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Home > About Us > Company > Board of Directors

January 2011 Board Meeting Minutes

 

                                                                    Jan 13, 2011

 

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 January 13, 2011, 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, and F. J. Ulrich.  Also present were W. G. Gates, President and S. M. Bruckner and T. F. Meyerson, General Counsel for the District.  Mr. Green, Board Chair, presided, and Ms. Emerson, Corporate Secretary, recorded the minutes.  Other members of Management present were D J. Bannister, T. J. Burke, M. I. Doghman, E. E. Easterlin, J. T. Hansen, A. J. Minks, P. T. Cullen, D. C. Mueller, J. R. Goodell, C. R. Bywater, R. J. Rogers, J. J. Hanson, and M. R. Jones.  Others present included C. Perkins of IBEW Local Union No. 763, Danielle Jensen, Steve Boyer, Jim Kutey, and Walter Kemp from Third Planet Wind Power, and John Pollack, and Mark Welsch.  

 

                        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 January 7, 2011; 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 November 2010 Comprehensive Financial and Operating Report and that the minutes for the last meeting be approved.  The vote was recorded as follows:  Weber – Absent; Cavanaugh – Yes; Dodge – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; Ulrich – Yes; and Green – Yes.  The motion carried.

 

 

 

                         Thereafter Ms. Emerson informed the Board that the District has received certificates from the Nebraska Secretary of State certifying the filing with his office of the official oaths of John K. Green, John R. Thompson, and Fred J. Ulrich as Directors of the Omaha Public Power District. 

 

 Copies of the certificates are attached to these minutes. (PDF, opens in new window)

 

                         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. 5852 approves $4.2 million transfer to the Rate Stabilization Reserve.  Director Thompson led the discussion by saying that in December, 2010, the Board approved $4.2 million to fund 2011 wind purchased power costs.  In 2010, the District put in place cost control measures and saw increased revenues from the summer months, and we are now in a position to replace the $4.2 million in the Rate Stabilization Reserve to restore the $32.0 million funding level.  Director Thompson added it is the recommendation of the Finance Committee that the Board approve this item   Following the discussion, the vote was recorded as follows:  Weber – Absent; Cavanaugh – Yes, Dodge – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; Ulrich – Yes; and Green – Yes.  The motion carried.            

 

                        RESOLUTION NO. 5853 approves new Rate Schedule No. 484 Supplemental Distribution Capacity Rider.  Director McGuire led the discussion indicating that some commercial customers require service levels of reliability that exceed the level normally provided by the District.  The District is able to meet their reliability requirements by providing an additional source of distribution capacity which may be facilitated via an Automatic Throw Over (ATO) switch. An ATO facilitates automatic switching of a customer’s load from the normal source of distribution capacity to an alternate source in the event of interrupted service from the normal source. Ms. McGuire indicated the District has approximately 120 accounts that receive supplemental distribution capacity.  Almost of all these accounts are served by approximately 70 ATOs as an ATO can serve more than one account.  The District can continue to provide this service for both existing and new customers; however, there are extra costs for providing this service.  Ms McGuire also indicated since 2009, any new customer that has wanted this service has been charged for the ATO, the cost of putting in the line, and also charged for the extra capacity.  What the District would like to do going forward for customers prior to 2009, is to put them on the Supplemental Distribution Capacity Rider Rate so that they may also pay for the distribution capacity and the maintenance of the ATO.  There would be a two-year delayed implementation of the Rider followed by a three-year phase for customers receiving this service prior to 2009.    Customer Sales and Service representatives will work with individual customers over the next few months to ensure customers understand their options.  She added that the District’s rate consultant, CH2MHILL, has issued an opinion stating that the proposed new rate is fair, reasonable, and non-discriminatory. 

 

Following the discussion, the vote was recorded as follows:  Weber – Absent; Cavanaugh – Yes, Dodge – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; Ulrich – Yes; and Green – Yes.  The motion carried.     

 

                        RESOLUTION NO. 5854 approves miscellaneous rate adjustments. Director McGuire led the discussion stating the District periodically reviews its rate schedules and customer service charges.  Rate Schedule 117 (Trailer Court Rate) affects two customers and it provides for a 4% discount for providing operations and collections services.  The District feels the discount is not necessary or allowed under other District rate schedules.  In addition, the District is modifying language to allow the District to conduct one curtailment day per year for testing for customers on Rates Schedules 467 General Service Curtailable Rider and Rate No. 467H Large General Service Curtailable Rider.  Ms. McGuire added the Board is also asked to approve miscellaneous adjustments to Rate Schedule 470 including reconnect fees, underground services, and pole attachment fees.  Ms. McGuire indicated these increased costs move us closer to reflecting the District’s true costs.  She added that the District’s rate consultant, CH2MHILL, has reviewed the proposed changes to the Trailer Park Rate and considers the proposed adjustments fair, reasonable, and non-discriminatory.   The District engaged Fox, Smolen, & Associates, Inc. to review the Tenant Attachment Fee, and based on their review, it appears to be reasonable.  Chairman Green inquired why CH2MHILL was not consulted on the Tenant Attachment Fee rate schedule.  Vice President Easterlin said the methodology that the District used, while not required to use, is stipulated by the Federal Communication Commission and is defendable if challenged, and Fox, Smolen & Associates is an expert in this process.    Following the discussion, the vote was recorded as follows:  Weber – Absent; Cavanaugh – Yes, Dodge – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; and Ulrich – Yes; and Green – Yes.  The motion carried

 

                        RESOLUTION NO. 5855 approval of revisions to the Board of Directors Standing Committee Charters. Director Ulrich led the discussion stating that in February 2009 the Board adopted the standing committee charters.  He noted there are risk assessment components added to the System Management Committee (review of the power marketing risk management strategy and performance) and Finance Committee (review the Enterprise risk management and Energy risk management) charters.  All other changes were housekeeping related and the Governance Committee recommends the Board approve the charter changes.  Following the discussion, the vote was recorded as follows:  Weber – Absent; Cavanaugh – Yes, Dodge – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; Ulrich – Yes; and Green – Yes.  The motion carried.                

 

                         RESOLUTION NO. 5856 approval of compensation adjustments for Corporate Officers.  Director Ulrich led the discussion by indicating both employees had outstanding performance appraisals and serve the District very well and are great assets to our customer-owners.   Mr. Ulrich proposed a 2.75% increase effective February 1 2011 for both Ms. Minks and Mr. Doghman.  Following the discussion, the vote was recorded as follows:  Weber – Absent; Cavanaugh – Yes, Dodge – Yes; Hall – Yes;  McGuire – Yes; Thompson – Yes; Ulrich – Yes; and Green – Yes.  The motion carried. 

 

The next order of business was election of Board officers.  Chairman Green indicated the Board offices are elected annually and announced that nominations were open for Chairman of the Board.

 

CHAIRMAN OF THE BOARD

 

Director McGuire nominated Director Green for the office of Chairman of the Board.  As there were no other nominations, nominations were closed and the vote was recorded as follows:  Weber – Absent; Cavanaugh – Yes, Dodge – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; Ulrich – Yes; and Green – Yes.  The motion carried. 

 

VICE CHAIRMAN OF THE BOARD

 

Director Cavanaugh nominated Director Dodge for the office of Vice Chairman of the Board.  As there were no other nominations, nominations were closed and the vote was recorded as follows:  Weber – Absent; Cavanaugh – Yes, Dodge – Abstain; Hall – Yes; McGuire – Yes; Thompson – Yes; Ulrich – Yes; and Green – Yes.  The motion carried. 

 

TREASURER OF THE BOARD

 

Director McGuire nominated Director Thompson for the office of Treasurer of the Board.  As there were no other nominations, nominations were closed and the vote was recorded as follows:  Weber – Absent; Cavanaugh – Yes, Dodge – Yes; Hall – Yes; McGuire – Yes; Thompson – Abstain; Ulrich – Yes; and Green – Yes.  The motion carried. 

 

SECRETARY OF THE BOARD

 

Director Dodge nominated Director Cavanaugh for the office of  Secretary of the Board.  As there were no other nominations, nominations were closed and the vote was recorded as follows:  Weber – Absent; Cavanaugh – Abstain; Dodge – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; Ulrich – Yes; and Green – Yes.  The motion carried. 

 

                       RESOLUTION NO. 5857 approves a resolution honoring Director Geoffrey C. Hall.    Director Cavanaugh extended his congratulations and appreciation of his dedication and friendship.   Chairman Green also extended his congratulations to Director Hall.  Following the discussion, the vote was recorded as follows:  Weber – Absent; Cavanaugh – Yes, Dodge – Yes; Hall – Yes; McGuire – Yes; Thompson – Yes; Ulrich – Yes; and Green – Yes.  The motion carried.  Chairman Green concluded by presenting a framed resolution to Mr. Hall.

 

Director Hall said he is both honored and humbled at the recognition.  Director Hall thanked Senior Management, both past and present, as well as his fellow Board members and also the men and women of the District. He added that he feels OPPD is a great utility and that he takes great pride in the District both past, present and future.

 

                            

                              The next item of business was the opportunity for those in attendance to address the Board on any items of District concern.  The following individuals addressed the Board:

 

                              Chairman Green introduced Steve Boyer, Walter Kamp, and Jim Kutey from Third Planet Windpower, LLC who briefed the Board on the Petersburg Wind Project (presentation attached; PDF, opens in new window).  Mr. Green also acknowledged Christene Bywater of OPPD for her work as the project manager.

 

                               Mr. John Pollack, 1412 N. 35 St., Omaha, NE, advised the Board on his concerns regarding climate change and the need to reduce carbon emissions from OPPD’s coal-fired plants 

Mr. Pollack’s comments are attached (PDF, opens in new window)

 

                                Mr. Mark Welsch, 5611 Howard St., Omaha, NE, who spoke on behalf of Richard Miller.  Mr. Welsch advised the Board of additional concerns regarding climate change.  Mr. Welsch also urged the Board to take action to:  1) reduce Nebraska emissions by 40% by 2020 through energy efficiency measures and substantially increasing the renewable energy standard, 2) urge Nebraska’s congressional delegation to support the EPA regulations of greenhouse gas pollution, and 3) meet with members of Nebraska 350.org. to discuss climate science.  Chairman Green acknowledged that he feels confident OPPD can achieve and surpass the 10% renewable goal and indicated that OPPD is already working towards carbon reductions. Mr. Welsch also congratulated the Board on their anti-tobacco policy win in the Nebraska Supreme Court. 

Mr. Welsch’s handouts are attached (PDF, opens in new window)

 

                          Copies of the foregoing resolutions are filed in the District’s Corporate Records file.    

 

                          There being no further business, the meeting adjourned at 10:52 a.m.

 

A. J.  Minks                                                                 D. S. Emerson             

Assistant Secretary                                                       Corporate Secretary

 

 

Board of Directors

bullet Board Mtg Schedule
bullet Board Mtg Minutes
bullet Committee Mtg Agendas
bullet Board Mtg Agenda
bullet Rules for Public Participation
bullet Approved Board of Directors Redistricting
bullet Preliminary 2014 Corporate Operating Plan
bullet Sustainablity Update March 20 2014
bullet Energy Assistance Program (EAP)/Common Fund

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