May 19, 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 May 19, 2011, at 10:00 a.m.
Present were Directors M. J. Cavanaugh, N. P. Dodge, J. K. Green, A. L. McGuire, L. Scheve, 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 T. J. Burke, D. J. Bannister, M. I. Doghman, J. T. Hansen, A. J. Minks, L. A. Olson, J. A. Comstock, J. W. Thurber, C. R. Bywater, D. J. Jacobberger, T. G. Tamke J. J. Hanson, and M. R. Jones. Others present included D Jensen (NEO), L. Pederson and M. Jerrell of Creighton University, A. Jameton (UNMC) D. Corbin, D. Renn, J. Pollack, and M. 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 May 13, 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 March 2011 Comprehensive Financial and Operating Report and that the minutes for the last meeting be approved. The vote was recorded as follows: Cavanaugh – Yes; Dodge – Yes; McGuire – Yes; Scheve – Yes; Thompson – Absent; Ulrich – Absent; Weber – 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. 5868 authorizes management to execute a long-term Power Purchase Agreement for 45 megawatts of wind generated electricity. Committee Chair McGuire led the discussion by stating that OPPD currently has about 173 megawatts of renewable generating capacity, including wind, landfill gas and solar arrays. Midwest Wind Energy LLC is planning to construct a 75 megawatt wind farm near Broken Bow, NE. The site offers a 40% capacity factor wind resource. OPPD proposes to purchase 45 megawatts of electric energy from this wind farm project. This purchase brings OPPD to 228 megawatts of renewable energy or 57% of our goal of 400 megawatts by 2020. Participation in this wind energy project is consistent with OPPD’s desire to support cost effective renewable energy projects and the current Integrated Resource Plan. It is estimated that this purchase will increase OPPD’s total rates by up to 2% depending on the outcome of an SPP study to understand the impact on our transmission system requirements. Following the discussion, the vote was recorded as follows: Cavanaugh – Yes, Dodge – Yes; McGuire – Yes; Scheve – Yes; Thompson – Absent; Ulrich – Absent; Weber – Yes; and Green – Yes. The motion carried.
RESOLUTION NO. 5869 authorizes management to negotiate and enter into a contract for the remanufacture of a failed autotransformer. Committee Chair Cavanaugh led the discussion indicating that a large 161-69kV, 202 MVA autotransformer failed on January 24, 2011. Preliminary quotes were obtained from qualified vendors to evaluate the extent of damages and viability of remanufacture. Based on this information, the autotransformer was shipped to Southwest Electric Company which submitted the lowest and best bid for these services. Extensive evaluation revealed remanufacture to be both viable and cost effective. However, the process to determine suitability for remanufacture was highly invasive, requiring core disassembly of the autotransformer. In its current state, it is impractical and economically unfeasible for another vendor to rebuild the autotransformer from the disassembled component parts. Compliance with the sealed bidding provisions of the Nebraska Revised Statutes Sections 70-637 through 70-639, as amended, would be impractical and not in the public’s best interest. The total estimated cost for remanufacture of the autotransformer is $650,000 as opposed to $1,250,000 to $1,500,000 for a new autotransformer of this size and type. Director Dodge inquired about warranties on the work and Vice President Doghman said there would be a standard one-year warranty on most parts.
Following the discussion, the vote was recorded as follows: Cavanaugh – Yes; Dodge – Yes; McGuire – Yes; Scheve – Yes; Thompson – Absent; Ulrich – Absent; Weber – 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.
There being no further business, the meeting adjourned at 10:10 a.m.
A. J. Minks D. S. Emerson
Assistant Secretary Corporate Secretary