February 17, 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 February 17, 2011, at 10:00 a.m.
Present were Directors M. J. Cavanaugh, J. K. Green, A. L. McGuire, J. R. Thompson, F. J. Ulrich, and D. D. Weber. 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, D. L. Stattler, J. J. Hanson, and M. R. Jones. Others present included R. Frakes, R. Miller, M. Welsch, J. Pollack, and customer Ted Strasser.
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 11, 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 December 2010 Comprehensive Financial and Operating Report and that the minutes for the last meeting be approved. The vote was recorded as follows: Weber – Abstain; Cavanaugh – Yes; Dodge – Absent; McGuire – Yes; Thompson – Yes; Ulrich – Yes; and Green – 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. Persons wishing to address the Board on all other matters will have an opportunity before the close of the meeting.”
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. 5858 authorizes management to award a contract to General Electric/Bently Nevada for turbine supervisory instrumentation system hardware and software replacement during the 2012 refueling outage at the Fort Calhoun Station. Director McGuire led the discussion by stating the turbine bearing vibration and temperature monitoring supervisory instrumentation at the Fort Calhoun Station is originally installed equipment with parts no longer being manufactured and that General Electric is the original equipment manufacturer for the existing turbine supervisory instrumentation at the station. Bently Nevada is owned by General Electric and is considered the de facto standard for supervisory instrumentation systems for large steam turbines in the District. She added the Fort Calhoun Station has an existing Bently Nevada vibration system installed on the reactor coolant pumps. The ability of the District to discuss and resolve complex issues on equipment and integration methodologies with the existing installed equipment is crucial to the success of the project. Compliance with the sealed bidding provisions would be impractical and not in the public’s best interest. The total estimated cost for the hardware and software replacement is $1,150,000. Following the discussion, the vote was recorded as follows: Weber – Yes; Cavanaugh – Yes, Dodge – Absent; McGuire – Yes; Thompson – Yes; Ulrich – Yes; and Green – Yes. The motion carried.
RESOLUTION NO. 5859 authorizes management to prepare an Open Access Transmission Tariff. Committee Chair McGuire led the discussion indicating that OPPD joined the Southwest Power Pool (SPP) as a transmission-owner member on April 1, 2009, and that management has concluded that due to changes in SPP’s transmission cost allocation methodology, it is no longer in the best interest of our customer-owners for OPPD to continue as a transmission-owner member. OPPD has notified SPP of its intention to change its membership in SPP to a nontransmission-owner effective April 13, 2011, and that this change will require OPPD to implement its own Open Access Transmission Tariff. SPP needs several months after the April 13 effective date of the membership change to complete the operational transition of the transmission system back to OPPD whereupon OPPD’s OATT will go into effect. Ms. McGuire indicated the District will work w/MAPP and SPP to accomplish this. Director Green asked if this item is mandated by FERC and Vice President Easterlin said since the District is non-jurisdictional, we do not report to FERC; however, in order for OPPD to use other utilities’ transmission system to buy and sell power, OPPD needs to open their transmission system in a similar manner.
This allows OPPD the reciprocity provision under the FERC guidelines. Mr. Easterlin added no consultant is required and OPPD will develop the tariff and bring the tariff to the Board in March for review. OPPD will then discuss the tariff with their transmission customers and ask for Board approval in April. Following the discussion, the vote was recorded as follows: Weber – Yes; Cavanaugh – Yes, Dodge – Absent; McGuire – Yes; Thompson – Yes; Ulrich – Yes; and Green – Yes. The motion carried.
RESOLUTION NO. 5860 approves the 2011 Standing Committee assignments for the Board of Directors. Board Chair Green indicated committee assignments are approved annually, and even though the Board is minus one Director, approval is requested today. Mr. Green added that when the new director is appointed, there may be some committee changes at that time. Director Thompson’s request for a change to the assignments was noted and will be addressed when the new Board member is appointed. President Gates said he expects the new Board member appointment within a week to ten days. Following the discussion, the vote was recorded as follows: Weber – Yes; Cavanaugh – Yes, Dodge – Absent; McGuire – Yes; Thompson – Yes; Ulrich – Yes; and Green – Yes. The motion carried.
RESOLUTION NO. 5861 approval of compensation adjustments for Corporate Officers. Director Ulrich led the discussion by indicating these are yearly adjustments and commented on the exemplary performance of Mr. Bannister and Mr. Hansen. Mr. Ulrich proposed a 2.75% salary increase effective March 1, 2011 for both Mr. Bannister and Mr. Hansen. Following the discussion, the vote was recorded as follows: Weber – Yes; Cavanaugh – Yes, Dodge – Absent; McGuire – Yes; Thompson – Yes; Ulrich – Yes; and Green – Yes. The motion carried.
Copies of the foregoing resolutions are filed in the District’s Corporate Records file.
The next item of business was the opportunity for those in attendance to address the Board on any items of District concern.
Dr. Richard Miller, professor at Creighton University, advised the Board of his comments on climate science. Dr. Miller indicated to the Board that climate change is real and the primary driver is human beings and can have severe consequences. He added if we are to avoid the most severe impacts of climate change, the emission of greenhouse gases must be dramatically reduced. Dr. Miller asked the Board to reflect upon the climate change issues, that they look at the expert consensus, and follow the recommendation that emissions must be reduced by 40% under 1990 levels by 2020 to avoid catastrophic climate change. The Board thanked Dr. Miller for his comments.
Mr. John Pollack, 1412 N. 35 St., Omaha, NE, advised the Board of his concerns regarding climate change and the urgent need to reduce carbon emissions and urged faster action to increase the District’s renewable energy portfolio (Mr. Pollack’s comments are attached). Chairman Green thanked the speakers and acknowledged the District is moving towards more renewable energy; however, questions still remain from a scientists’ point of view to a public policy point of view, in moving forward without putting the utility and its citizens at risk.
Comments by Mr. John Pollack (PDF, opens in new window)
Mr. Ted Strasser of Home Trailer Park, 6902 N. 16 Street, Omaha, NE, approached the microphone to discuss his concern with the Board action to discontinue Rate 117. Chair Green said that due to the Open Meetings Act requiring proper notification to the public of any changes to an approved Board action item, OPPD is not able to take any additional action on this item at today’s meeting. However, Mr. Green said this item will be brought back to the Board in March for further study.
There being no further business, the meeting adjourned at 10:35 a.m.
A. J. Minks D. S. Emerson
Assistant Secretary Corporate Secretary