71
Regular Board Meeting
November 30, 2017
Agenda
• Directors Present/Absent• Call to Order/Pledge of
Allegiance/Invocation
Agenda & Minutes
• Adoption of Agenda (Tab 3)
• Approval of Minutes of Previous Meeting
(Tab 4)
Safety Moment
Mike Cobb
Review/Discuss Member Concerns
or Compliments
Review Agenda
• Review New Members: 504 (Listing on Board Table)
• Review Listing of Terminated Accounts:175 Members at $18,646.48(Listing on Board Table)
Review Agenda
Review of President’s, Directors’ and Consultant
Expenses (Detail available in Tab 9)
Consent Agenda Items
• Approve Uncollectible Member Write-offs: 56 Members at $ 22,809.22 (Listing on Board Table)
• Approve Payment of Capital Credits: $19,477.07 (Tab 11)
• Approval of Consent Agenda Items– Motion ________________________– Second________________________
DepartmentalReports
SAFETY
Board of Director’s MeetingNovember 30, 2017
Presented by: April Brown
1
0
2
1
2
2
2
1 3
0
2
2
4
1
1
0
1
2
3
4
5
6
7
8
2013 2014 2015 2016 2017 (as of 10/31/17)
OSHA Recordable Cases (2013 - October 2017)
Lost Time Restrictions No Lost Time
YTD 2017Lost Time = 2Restrictions = 0No Lost Time = 1
TOTAL = 3
SAFETY October 2017Lost Time = 0Restrictions = 0No Lost Time = 0
TOTAL = 0
Hours WorkedOctober = 22,075 hoursYTD = 215,955 hours
SAFETY
3.13
5.48
3.96
2.78
0
1
2
3
4
5
6
2014 2015 2016 2017 (as of 10/31/17)
Recordable Incident Rate Trend Analysis
YTD 2017Lost Time = 2Restrictions = 0No Lost Time = 1
TOTAL = 3
October 2017Lost Time = 0Restrictions = 0No Lost Time = 0
TOTAL = 0
2.81 as of 10/31/16
Hours WorkedOctober = 22,075 hoursYTD = 215,955 hours
SAFETY YTD 2017Lost Time (# of Days) = 215Restrictions (# of Days) = 66
TOTAL = 281 days
12.54
79.88 76.91
260.24
93.54
0
50
100
150
200
250
300
2014 2015 2016 2017 (as of 10/31/17)
Severity Rate Trend Analysis
“Nor
mal
ized”
October 2017Lost Time (# of Days) = 0Restrictions (# of Days) = 0
56.22 as of 10/31/16
KREC Health Plan
Board of Director’s MeetingNovember 30, 2017
Presented by: April Brown
$(2,000,000.00)
$(1,500,000.00)
$(1,000,000.00)
$(500,000.00)
$-
$500,000.00
$1,000,000.00
MAR
GIN
S
SELF-FUND MEDICAL PLAN ANALYSIS(as of 10/31/17)
KREC
OEC
$0.00
KREC = ($285,187)OEC = $84,421
2017 YTD Funding Analysis by Co-op
$(1,400,000.00)
$(1,200,000.00)
$(1,000,000.00)
$(800,000.00)
$(600,000.00)
$(400,000.00)
$(200,000.00)
$-
$200,000.00
$400,000.00
$600,000.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Ow
en E
lect
ric
October 2017
Member Services and Marketing Overview
Presented By: Mike Cobb
Member Services and Marketing Summary
October 2017
Member Services and Marketing Summary
Member Services & Marketing Summary
October 2017
Questions / Discussion
October 2017
Corporate Services and Risk Management Overview
Presented By: Ann Wood
Regulatory Update • Active Cases with PSC
o 2017-00299—Fuel Adjustment Clause (6-month period ending April 30, 2017)—Awaiting Final Order.
o 2017-00326—Environmental Surcharge (2-year period ending June 30, 2017)—Second data request was not issued. The Commission may issue a second data request on October 26. EKPC will be filing a motion requesting that an Order be issued based on the case record.
o 2017-00389—Territorial Change between Owen Electric and Duke—Duke filed an application with the Commission requesting that Owen Electric be allowed to serve certain homes in Triple Crown that are in Duke’s service territory but could be better served by Owen Electric.
o Request for Staff Opinion—Upon approval by the Board, Owen Electric will file a request for staff opinion (that no CPCN is required) regarding the 2018-2019 construction work plan.
Corporate Services Overview
Distributed Generation Information
• YTD October 2017 purchased power savings: $644,079
• YTD October 2017 costs: $596,345• Net Savings: $47,734
• Life-to-Date Savings: $117,355
Statement of Operations Year-to-Date 2017
YTD Oct 2017 YTD Oct 2016 BudgetOperating Revenue $ 136,837,677 $ 138,236,683 $ 142,815,752
Purchased Power $ 104,864,575 $ 106,413,874 $ 110,702,007
Production Costs (Including Deprec.) $ 596,345 $ 317,454 $ 686,421
Distribution Costs $ 15,910,997 $ 15,201,635 $ 15,500,118
Depreciation/Interest/Other $ 13,865,940 $ 13,574,940 $ 13,871,900
Operating Margin $ 1,599,821 $ 2,728,780 $ 2,055,307
Nonoperating Revenue $ 794,761 $ 704,945 $ 630,000
Net Margins $ 2,394,582 $ 3,433,725 $ 2,685,307
YTD October 2017 Revenue
Residential Small C&I Large C&I NUCOR Other RevOct-17 Act $64,602,256 $17,573,496 $14,921,600 $35,132,028 $4,608,297Oct-17 Bud $69,671,899 $18,262,836 $15,616,655 $34,906,971 $4,357,391Oct-16 Act $67,691,934 $17,636,569 $15,346,891 $33,063,436 $4,497,854
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000Oct-17 Act
Oct-17 Bud
Oct-16 Act
YTD October2017 Revenue Components
Base Rates FAC ES Accrual Adj. Other TotalOct-17 Act $131,782,053 $(9,644,579) $14,335,486 $(1,720,720) $2,085,437 $136,837,676Oct-17 Bud $135,061,607 $(7,170,236) $13,113,932 $- $1,810,450 $142,815,752Oct-16 Act $132,163,178 $(8,870,426) $12,440,884 $541,538 $1,961,510 $138,236,684
$(20,000,000)
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000 $160,000,000
Oct-17 Act Oct-17 Bud
Oct-16 Act
YTD October 2017 Purchased Power
-20%
0%
20%
40%
60%
80%
100%
2017 Budget 2016
$65,829,095 $71,092,210 $68,688,808
$(5,604,469) $(4,398,352) $(5,456,734)
$9,742,940 $9,374,923 $10,332,541
$34,844,153 $34,633,226 $32,798,128
NUCORESFACBase Rate
YTD October 2017Controllable Costs
Distrib.Oper.
Distrib.Maint.
ConsumerAccounts
CustomerService
Gen. &Admin. Total
Oct-17 Act $3,992,769 $3,542,619 $3,303,683 $589,095 $4,482,831 $15,910,99Oct-17 Budget $4,018,362 $2,865,665 $3,270,147 $598,834 $4,747,110 $15,500,11Oct-16 Act $3,956,058 $3,211,475 $3,281,810 $567,251 $4,185,040 $15,201,63
$- $2,000,000 $4,000,000 $6,000,000 $8,000,000
$10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000
Oct-17 Act Oct-17 Budget Oct-16 Act
Margin—YTD October 2017
Operating Margin Net Margin
October 2017 Actual $1,599,821 $2,394,582
October 2017 Budget $2,055,307 $2,685,307
October 2016 Actual $2,728,780 $3,433,725
Distribution Equity at 10/31/17 is 26.60%.
Policy 319—20%-35%
Risk Management Update• Survey results are being compiled and will be
presented to the IRMC and BROC later this year
Corporate Services Overview
Operations Board Report
November 2017
Right-of-Way
YTD Target - 2017 % CompleteTrimming Miles 569 651 88%Spraying Miles 771 771 100%
• All spraying complete• Trimming is on schedule
GPS Field Inventory ProjectDavey Resource Group
Remaining Miles 1,083.11Total Miles 4,382.18% Remaining 24.72%
Remaining Substations 7Total Substations 37% Remaining 18.92%
GPS Field Inventory ProjectDavey Resource Group
• Field data collection complete
• “Quality Control and Data Processing,” 7 substations remaining to complete.
• Davy’s goal to complete project is 12/30/17.
• Late penalties to date are $15,000
• Penalties if completed 12/30/2017 are $31,000
Construction
2,918
351
716
2,727
360703
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Jobs Worked Total Temporaries Connects
2016
2017
YTD
Porcelain Cutout Change Out2017 Total Target - 2017 % Remaining
Changed Out 908 1,000 9.2%
Grand Total Target – Q4 2018 % RemainingChanged Out 4,719 5,691 17.08%
Technology Report
November 2017
Monthly DVR
MonthMonthly
PeakMW
Shaved Times HoursKW Demand
SavingsKwh
Sales Loss
Jul-17 2164.7 5.19 9 23.9 $ 15,546.53 $ 1,920.10
Aug-17 2098.3 4.83 5 15.2 $ 14,472.36 $ 2,026.66
Sep-17 1926.3 5.15 7 8.5 $ 15,411.40 $ 2,312.85
Oct-17 1885.1 5.97 6 17.4 $ 17,893.29 $ 1,611.77
Nov-17** 21.55 6.86 7 14.4 $ 20,539.61 $ 3,194.37
** Current monthly peak as of this report
System Operations
Year
Total MW
ShedPeaks
Caught
Total DVR
Periods
Total DVR
Hours
Total Yearly
Demand Savings
RunningTotal
Demand Savings
2013 17.0 4 of 5 23 87.0 $56,577.56 $56,577.56
2014 45.7 6 of 12 20 70.5 $182,496.45 $239,074.01
2015 65.9 11 of 12 43 90.1 $197,285.34 $436,359.34
2016 51.6 8 of 12 53 124.7 $166,187.29 $602,546.64
2017* 65.2 11 of 11 64 165.2 $195,301.09 $797,847.73
System Operations
Yearly DVR
* Partial Year
October Interruptions
83 90
12881378
0
200
400
600
800
1000
1200
1400
1600
Monthly 2017
Adjusted
2017 YTD
Adjusted
2016 YTD
Adjusted
Monthly 2016
Adjusted
October SAIDIAverage minutes off per Member
2.19 4.26
76.59
52.67
0
10
20
30
40
50
60
70
80
90
Monthly2017
Adjusted
2017YTD
Adjusted
2016YTD
Adjusted
Monthly 2016
Adjusted
MIN
UTE
S
Interruptions by Outage TypeYTD & Monthly [October]
48
248
40
272
4914
57121
32
493
200
0
100
200
300
400
500
600
Technology
Technology
Cyber Security Steering Committee (CSSC) Update• Held 7 Meetings (June, July, August, Sept (x2), Oct, Nov)• Reviewed 86% of Technology Guidelines drafted as part
of Cyber Security Program. Remaining items:
Physical and Environment Security, System Patching, Outsourced Information Processing, Third Party Access, Definitions
• On Schedule to Completed by December
Technology
Questions??
Engineering Report
November 2017
Engineering UpdateDG Unit
Runtime Efficiency
August 82.9% 39.9%September 94.3% 39.7%October 88.8% 41.4%Since start up 82.6% 39.4%
DG Stats
CAT will install the newly-designed, modified ignition system afterfirst of year to hopefully get the efficiency up to stated design spec.
Today’s Solar: 4kW
Action Items• 2018 Strategic Plan – Vote in December• 2018 Budget – Vote in December• Federated Rural Insurance Renewal – Vote in
December• Construction Work Plan – Approval
Requested in NovemberMotion ________________
Second ________________
CALL FOR VOTE
Oversight Agenda
EKPC Report
Report Presented by: Alan Ahrman
KAEC Report
Report Presented by: Bob True
Attorney’s Report
Presented By: Jim Crawford
President’s Report
November 2017
Presented By: Mark Stallons
President’s Report OverviewPresented By: Mark Stallons
• Enterprise Risk Management – All employee, board & Counsel surveys are completed and results are being tabulated. The IRMC will review the survey results in December and develop Tier 1, 2 & 3 risks for review and consultation with the BROC in January.
President’s Report OverviewPresented By: Mark Stallons
• 2018 Strategic Plan & Budget- OnNovember 16th the Bid, Budget & Planning Committee reviewed the 2018 Strategy, Budget and Construction Work Plan, agreed to recommend approval and will ask the Management Team to lead the discussion at our November Board Meeting.
• Benefit Update- MDF HR Consulting has developed a financial model allowing us to evaluate our existing R&S plan and compare it with a variety of alternatives. We are in discussions with NRECA Benefits Team to discuss pricing several options. We will review in more detail with the Board in January.
President’s Report OverviewPresented By: Mark Stallons
• Miscellaneous
InformationAgenda
2017 Board Meetings & Training
November 30th, 2017 – Regular Board MeetingDecember 1st – 6th – NRECA Winter School; Nashville, TN (Charlie)December 14th, 2017 – Regular Board Meeting
2018 Board Meetings & TrainingJanuary 25, 2018 – Regular Board MeetingFebruary 22, 2018 – Regular Board MeetingFebruary 22-28, 2018 – NRECA Annual Meeting; Nashville, TN (Dates include pre-conference training opportunities)March 25-28, 2018 – Director’s Conference; Las Vegas NVMarch 29, 2018 – Regular Board MeetingApril 8-10, 2018 – Legislative Conference; Washington, D.C.April 26, 2018 – Regular Board MeetingMay 31, 2018 – Regular Board MeetingJune 10-13, 2018 – CFC Forum; Indianapolis, INJune 28, 2018 – Regular Board MeetingJuly 10-12, 2018 – CoBank Director’s Conference; Colorado Springs, COJuly 27, 2018 – Regular Board MeetingAugust 30, 2018 – Regular Board MeetingSeptember 27, 2018 – Regular Board MeetingOctober 9-11, 2018 – NRECA Regional Meeting; Atlanta, GAOctober 25, 2018 – Regular Board MeetingNovember 29, 2018 – Regular Board MeetingDecember 20, 2018 – Regular Board Meeting & Christmas Luncheon
Information Agenda
• Conference Reports– As needed
• Old Business• New Business• Executive Session
– As Needed• Miscellaneous• Adjourn
– Motion ________________________– Second________________________
