ADMIN C458-20181221125605 · 2018. 11. 6. · Page 1 of 2 MEMORANDUM OFFICE OF THE GENERAL MANAGER NORTHERN WASCO COUNTY PEOPLE’S UTILITY DISTRICT DATE: October 25, 2018 TO: Directors

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MEMORANDUM OFFICE OF THE GENERAL MANAGER

NORTHERN WASCO COUNTY PEOPLE’S UTILITY DISTRICT

DATE: October 25, 2018 TO: Directors Gonser, Howe, Karp, Smith & Williams FROM: Roger M. Kline, General Manager SUBJECT: 2018 Organizational Performance Update & Q3 Results

Background

Early in 2016, The Board of Directors approved the organizational dashboard quarterly reporting

methodology, comparing the stated values of the organization to the operational and strategic work

the PUD was to accomplish throughout the year. In 2017 the Board and executive management

team (EMT) agreed that a transition to the Key Performance Area (KPA) and their associated Key

Performance Indicators (KPI) would be even more beneficial for the Board’s understanding and

monitoring of the PUD’s functional areas. Please consider the following comments in conjunction

with the provided organizational performance dashboard.

Key Performance Area – Workforce

The District continues to perform admirably in the areas of workforce. Safety, training and

development, care for publicly-owned equipment and cultural behavior supports the positive work

that is being accomplished on behalf of our customer-owners. Staff did experience two lost time

incidents during the measurement period, but they were not due to negligence or inattention to detail.

We continue to be creative in our recruitment and retention methods and look forward to furthering

excellence in these areas.

Key Performance Area – Finance

All KPI’s are well within target ranges with an increase in total sales being realized.

Key Performance Area – Customer

Energy efficiency and conservation focus continues to be in our low-income residential sector. The

Board approved the “Energy Efficiency Upgrade Program” during this measurement period with

early indications being very positive to the community. Some commercial/industrial projects were

completed during this measurement period allowing the total kilowatt-hour savings for the District to

be much improved.

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Key Performance Area – Power Supply

One forced-outage at McNary Fishway project was experienced during the measurement period.

The root-cause investigation and subsequent explanation to the Board occurred during the regular

monthly meeting. A strategic capital investment project will be undertaken at both power stations to

aid information gathering and troubleshooting in the future.

Key Performance Area – Electric Service Delivery

The District experienced a large unplanned outage in the area of the local hospital in The Dalles

during the measurement period. Root-cause analysis and investigation identified a failed

underground conductor. This outage duration drove the key-performance indicator (KPI) to above

expected levels. Further investigation and planning for other underground conductor replacement

has been added to the long-term capital investment plan/portfolio.

Key Performance Area – Enterprise Operations

The District continues to refine its enterprise operations to maximize benefit and minimize long-term

costs. Much improvement has been made in supply-chain management, warehousing efficiency, and

our use and utilization of our enterprise systems such as Utility Power-Net (UPN), Information

Technology servers and most recently our corporate telephone systems. Further refinement of our

work-order process is ongoing and being refined as we prepare for an expected influx of large capital

projects.

Summary

Q3 performance was as expected and continues to illustrate the positive advancements that the

District is making in multiple areas. Our ability to safely and nimbly respond to local and regional

conditions are better because of the hard work that both Staff and the Board of Directors continue to

display on behalf of our customer-owners. One specific illustration of this was our ability to

effectively respond to the multiple wild fires experienced during the measurement period. We safely

and successfully responded to neighboring utilities as well as restored our own systems in a timely

manner.

It should also be noted that the District set a new historic peak-load during this same period. Load

growth continues to be realized and is a major focus of the Districts Strategic Plan.

2018 NWCPUD Performance Dashboard

Results by Quarter

Targ

et

Q1

Q2

Q3

Q4

Year

Ben

chm

ark

Sourc

eComments

Key Performance Area Workforce

Safety Training Completed > 95% 82% 93% 80% 90% APPA Delinquent training in non-operations group(s)

Lost Work Days 0 0 0 0 4 APPA

OSHA Recordable Incidents 0 0 0 2 5 APPA one dog bite, one dust in eye (Q1 incident cleared to 0)

Miles Driven N/A 18,320 20,545 19,248 Industry Policy

Vehicle Accidents 0 0 1 0 2.60 Previous Year

Accident Costs $0.00 0 $2,378.00 $0.00 10,000.00 Previous Year Meter Reader vehicle vs. rock

Competative Compensation > 80-120% 96.00% 96.00% 96.00% 100% NWPPA Market updates pending for variety of areas

Key Performance Area Finance

Bond Rating A1 A1 A1 A1 A1 APPA As per Moody's Rating Agency (09/01/16)

External Audit Clean Clean Clean Clean Clean Policy

Rates 1st Quartile 1st Quartile 1st Quartile 1st Quartile Mid-C/OPUDA Region

Debt Service Coverage (DSC) >1.25 8.71 7.37 9.51 2.32 APPA

Budget to Actuals 5% tolerance 95.71% 103.00% 103.80% Industry Policy YTD Bud-Act: Rev.: 108.1% Exp.: 103.8%

Current Ratio 2.6 2.6 2.7 2.91 Median APPA

Operating Ratio 0.864 0.874 0.887 0.868 Median APPA

Pilot/Cilt $ 3% 3.0% 3.0% 3.0% N/A Policy

Debt to Total Asset 0.324 0.279 0.269 0.264 Median APPA

Key Performance Area Customer

Energy Conservation (MWh) > 1205 269 122 582 1.2MW Previous YearIncrease due to large commercial lighting projects. A few

medium-size projects expected by end of the year.

Meter Reading Accuracy < 0.30% 0.17% 0.24% 0.07% Industry Directive Q3 reflects 24 adjustments in 30,200 reads

Key Performance Area Power Supply

The Dalles Fishway Project

Availability > 95% 81.68% 98.61% 99.54% 95% NERC BPA line outage, Line insulator replacement by KPUD

Forced Outage < 3% 0.44% 0.09% 0.08% 3% NERC

Planned Maintenance > 95% 93.50% 100.00% 100.00% 95% PolicyMcNary Hydro Project

Availability > 95% 64.42% 90.88% 92.06% 95% NERC Faulty solenoid

Forced Outage < 3% 1.67% 0.04% 7.83% 3% NERC

Planned Maintenance > 95% 100.00% 100.00% 100.00% 95% Policy

Key Performance Area Electric Service Delivery

< 63.5717 4.3060 6.4970 41.3560 161.7605 Prev Year / APPA

< 0.7314 0.1240 0.0253 0.1900 .8515 Prev Year / APPA

< 86.9172 34.8270 256.8140 217.7540 321.6103 Prev Year / APPA

> 99.9906% 99.997% 99.995% 99.968% 99.9693 Prev Year / APPA

< 4.67% -0.47% -0.74% 2.060% 2.26% Prev Year / APPA

> 51.02% 59.61% 60.28% 63.50% 51.02% Prev Year / APPA

> 67.15% 74.81% 82.57% 80.76% 67.15% Prev Year / APPA

Key Performance Area Enterprise Operations

Work Order Completion on sched Y Y Y 5% of sched Directive Process improvement continues

Service Order Completion on sched Y Y Y 5% of sched Directive

Tree Program Service Order on sched Y Y Y 5% of sched Directive Achieving excellence in this area

IT Service Desk Ticket on sched Y Y Y 5% of sched Directive Achieving excellence in this area

Project Management Office 3% Milestone Y Y Y 5% of sched Directive

Fleet Vehicle Maintenance on sched 100% 100% 100% 5% of sched Directive

Facilities Work Order Comp on sched Y Y Y 5% of sched Directive

Key Performance Indicator

SAIDI - Average outage duration for each customer

SAIFI - Average number of interuptions

CAIDI - Average Outage duration customer experiences

ASAI - Average Availability Index

Diversified System Losses

Diversified Load Factor - kWh / Peak Load / Hours

Load Factor - kWh / Peak Load / Hours

Key Performance Indicator

Key Performance Indicator

Key Performance Indicator

Key Performance Indicator

Quarter Q3 3 Available Hours

Scheduled Outage Hours

From 7/1/2018 1:00 Forced Outage Hours

To 10/1/2018 0:00 Total Hours Offline

EAF%

Total PM's Generated To-Date 136 % Online

Total MWh's Generated

Completed PM's To-Date 136 aMW's

Cause Outage Qtr Start Date Duration End Date

Annual Outage SCHEDULED Q1 1/15/2018 7:30 385:42:00 1/31/2018 9:12

Outside Line Fault FORCED Q1 2/2/2018 16:51 1:32:00 2/2/2018 18:23

Outside Line Fault FORCED Q1 2/2/2018 19:39 0:56:00 2/2/2018 20:35

Tripped 86G & 86T due to B Phase

Nuetral GroundFORCED Q1 2/17/2018 15:26 5:24:00 2/17/2018 20:50

Test Line-Ouage from Spearfish SCHEDULED Q1 3/20/2018 9:00 2:08:00 3/20/2018 11:08

Line-Trip due to high winds FORCED Q2 4/8/2018 14:46 0:43:00 4/8/2018 15:29

Accidental Trip FORCED Q2 4/9/2018 8:46 0:57:00 4/9/2018 9:43

Testing for 86 Trip SCHEDULED Q2 4/10/2018 10:33 27:27:00 4/11/2018 14:00

Accidental Trip FORCED Q2 5/3/2018 10:42 0:13:00 5/3/2018 10:55

Planned to make PLC Changes SCHEDULED Q2 6/26/2018 10:08 1:04:00 6/26/2018 11:12

Inadvertant breaker trip FORCED Q3 7/18/2018 10:04 0:21:00 7/18/2018 10:25

COE ROV inspection of N-1 SCHEDULED Q3 7/30/2018 9:33 1:00:00 7/30/2018 10:33

Line insulator request by KPUD FORCED Q3 8/1/2018 9:45 1:31:00 8/1/2018 11:16

BPA line outage SCHEDULED Q3 9/21/2018 20:56 7:12:00 9/22/2018 4:08

Outage Durations (Hours)

2208:00:00

8:12:00

1:52:00

10:04:00

99.92%

99.54%

11,564,525

4.73

10:04:008:12:00

1:52:00

Total Hours Offline Scheduled Outage Hours

Forced Outage Hours

Below 90%

100.00%

Scheduled Maintenance Completion

0

20

40

60

80

0

1,000

2,000

3,000

4,000

5,000

NET

HEA

D

KW

The Dalles Fishway Generation vs. Net Head

Output (KW) Net Head (Ft)

Quarter

Q1 Q2 Q3

Quarter Q3 3 Available Hours

Scheduled Outage Hours

From 7/1/2018 1:00 Forced Outage Hours

To 10/1/2018 0:00 Total Hours Offline

EAF %

Total PM's Generated 162 % Online

Total MWh's Generated

Completed PM's 162 aMW's

Cause Outage Qtr Start Date Duration End Date

Annual Outage SCHEDULED Q1 1/2/2018 6:57 744:57:00 2/2/2018 7:54

Excessive Water in Turbine Bearing FORCED Q1 2/3/2018 7:20 23:38:00 2/4/2018 6:58

Exciter Upgrade SCHEDULED Q2 5/14/2018 8:59 198:23:00 5/22/2018 15:22

Trash rack cleaning FORCED Q2 5/31/2018 10:27 0:45:00 5/31/2018 11:12

Cooling water low flow trip FORCED Q3 8/20/2018 4:02 11:09:00 8/20/2018 15:11

Faulty solenoid FORCED Q3 8/22/2018 18:34 161:08:00 8/29/2018 11:42

Line 6 work SCHEDULED Q3 9/17/2018 5:54 2:30:00 9/17/2018 8:24

Trash rack cleaning FORCED Q3 9/17/2018 9:15 0:34:00 9/17/2018 9:49

Outage Durations (Hours)

2209:00:00

2:30:00

172:51:00

175:21:00

92.17%

92.06%

20,367,970

9.22

175:21:00

2:30:00

172:51:00

Total Hours Offline Scheduled Outage HoursForced Outage Hours

Below 90%

100.00%

Scheduled Maintenance Completion

0

20

40

60

80

0

2,000

4,000

6,000

8,000

10,000

NET

HEA

D

KW

McNary Fishway Generation vs. Net Head

Output (KW) Net Head (Ft)

Quarter

Q1 Q2 Q3

Begin Finish PhaseEstimated

Budget

To-Date

Amount

Technology Infrastructure Replacement 11/2/2016 6/26/2018 Monitoring $68,500 $54,263

Customer Survey 6/25/2018 12/4/2018 Executing $5,295 $2,648

SOP Support Services 4/17/2018 3/31/2019 Executing $75,000 $37,500

Substation Data Acquisition Database 10/18/2018 3/1/2019 Executing $47,100 $0

230 kV TransLink 9/16/2018 6/1/2020 Executing $985,000 $66,706

Tygh Valley & Eastside Substation 10/16/2018 6/1/2020 Initiating TBD $0

Automated Metering Infrastructure 10/16/2017 5/31/2019 Executing $2,250,000 $0

Access Control System 8/25/2017 11/30/2018 Controlling $150,000 $145,234

The Dalles Marina 1/22/2018 12/31/2018 Planning $750,000 $31,155

TDF Hydro Fish Sampling Facility 8/8/2017 3/1/2020 Planning $700,000 $29,388

Solutions Group - 7 UPN projects 4/9/2018 12/31/2018 Executing $148,800 $18,842

Projects In-Flight 18

Projects Closing 0

Projects On Hold 1

Projects Closed 13

Total Projects 31

PROJECT NAME

TIMELINE

PROJECT PORTFOLIO DASHBOARD

PIPELINE TRACKING

PROJECT ELEMENTS

$0

$250,000

$500,000

$750,000

$1,000,000

$1,250,000

$1,500,000

$1,750,000

$2,000,000

$2,250,000

$2,500,000

Budget Estimate/ Invoiced To-Date

22%

1%

39%

MILESTONE STATUS TRACKING

INPROGRESS

OVERDUE

NOTSTARTED

1515

8ISSUES TOTAL

CLOSEDPENDINGOPEN

3 4 805

10

HIGH MEDIUM LOW

RISKS

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NORTHERN WASCO COUNTY PUD2019 PRELIMINARY BUDGET REVIEW

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2019 PRELIMINARY BUDGET REVIEWLONG TERM FINANCIAL PLAN

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2019 PRELIMINARY BUDGET REVIEW

2017 2018 2019

NWCPUD PROJECTION Preliminary

ACTUALS YEAR END BUDGETREVENUE/REIMBURSEMENTS (39,011,118)$ (45,444,627) (53,167,140) O&M LABOR 3,464,148$ 3,692,836 4,337,660 O&M NON-LABOR 39,250,563$ 43,243,621 49,117,017 OVERHEAD & BENEFIT TO SPREAD (3,168,114)$ (3,367,866) (3,665,125) TOTAL LOSS / (GAIN) 535,479$ (1,876,035) (3,377,588)

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2019 PRELIMINARY BUDGET REVIEW

REVENUE/REIMBURSEMENTS (39,011,118)$ (45,444,627) (53,167,140)

OPERATING REVENUE (37,345,757)$ (44,061,399) (51,566,562)

OTHER OPERATING REVENUES (320,204)$ (339,711) (332,658)

NON-OPERATING INCOME (755,128)$ (446,216) (598,009)

ADMINISTRATION CREDITS (311,876)$ (579,851) (659,500)

REIMBURSEMENTS (4,634)$ (5,253) (5,411)

GAIN/LOSS ON SALE OF GENERAL PLANT (273,518)$ (12,196) (5,000)

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2019 PRELIMINARY BUDGET REVIEW

O&M LABOR 3,464,148$ 3,692,836 4,337,660

LABOR & MISCELLANEOUS EARNINGS 3,464,148$ 3,692,836 4,337,660

O&M NON-LABOR 39,250,563$ 43,243,621 49,117,017

COMPUTER SUPPORT & SUPPLIES 166,445$ 263,748 221,215

DEPRECIATION, AMORTIZATION & INTEREST EXPENSE 3,235,646$ 3,027,666 3,072,979

DUES, MEMBERSHIPS & SUBSCRIPTIONS 222,519$ 245,087 262,364

EDUCATION, TRAINING & TRAVEL 197,996$ 247,023 254,663

EMPLOYER PAID BENEFITS 2,275,377$ 2,300,243 2,377,659

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2019 PRELIMINARY BUDGET REVIEW

O&M NON-LABOR 39,250,563$ 43,243,621 49,117,017 FACILITIES MAINTENANCE 58,139$ 44,199 45,524

FLEET MAINTENANCE 243,764$ 247,236 284,766

FEES, LICENSES & PERMITS 158,339$ 172,283 145,241

MISCELLANEOUS EXPENSES 113,405$ 153,966 166,438

OUTSIDE SERVICES EMPLOYED 1,744,869$ 1,480,992 1,232,154

OVERHEADS & BENEFITS APPLIED 2,487,710$ 2,491,832 2,933,317

POSTAGE 52,175$ 40,349 41,237

PROPERTY & LIABILITY INSURANCE 191,192$ 193,130 215,697

PROPERTY RENT 13,567$ 19,423 15,900

POWER PURCHASED 22,745,672$ 26,134,780 30,495,644

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2019 PRELIMINARY BUDGET REVIEW

O&M NON-LABOR 39,250,563$ 43,243,621 49,117,017 PUBLIC RELATIONS & MARKETING 143,693$ 158,741 147,704

REBATE PROGRAMS 743,712$ 719,740 716,400

SAFETY PROGRAM 78,123$ 19,699 19,501

SUPPLIES, MATERIALS AND TOOLS 125,256$ 188,829 190,805

TAXES 1,422,318$ 1,695,619 2,007,000

TRANSMISSION COSTS 2,787,873$ 3,359,158 4,229,235

UTILITIES 42,773$ 39,880 41,573

OVERHEAD & BENEFITS SPREAD TO OTHER DEPART (3,168,114)$ (3,367,866) (3,665,125)

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2019 PRELIMINARY BUDGET REVIEW

Single Phase, 10,071,909 , 20%

Three Phase, 1,208,297 , 2%

Demand, 4,085,999 , 8%

Primary, 34,404,055 , 68%

Irrigation, 219,211 , 1%

Street/Yard Light, 446,003 , 1%

2019 Budget Retail Revenue

$50.4M

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2019 PRELIMINARY BUDGET REVIEW2017 Act 2018 Proj 2019 Bud

RevenueSingle Phase 10,305,413 28.3% 10,066,815 23.7% 10,071,909 20.0%Three Phase 1,199,829 3.3% 1,205,243 2.8% 1,208,297 2.4%Demand 3,807,394 10.5% 4,078,715 9.6% 4,085,999 8.1%Primary 20,505,103 56.4% 26,443,054 62.3% 34,404,055 68.2%Irrigation 179,898 0.5% 216,513 0.5% 219,211 0.4%Street/Yard Light 360,569 1.0% 445,566 1.0% 446,003 0.9%

Total Retail Sales 36,358,206 42,455,906 50,435,474

ExpenseCost to Manage Work Cost % of Total Cost % of Total Cost % of TotalO&M Labor 5,951,859 15.1% 6,184,668 14.2% 7,270,977 14.6%O&M Non Labor 3,000,023 7.6% 2,527,697 5.8% 2,400,183 4.8%Outside Service 1,744,869 4.4% 1,480,992 3.4% 1,232,154 2.5%

10,696,751 27% 10,193,357 23% 10,903,314 22%

Cost to ServePurchased Power 22,745,672 57.5% 26,134,780 60.1% 30,495,644 61.2%External Trans 2,787,873 7.0% 3,359,158 7.7% 4,229,235 8.5%Depreciation 2,286,824 5.8% 2,594,144 6.0% 2,639,359 5.3%City Fees 1,029,478 2.6% 1,211,510 2.8% 1,522,000 3.1%

28,849,846 73% 33,299,592 77% 38,886,238 78%

Total Expense 39,546,597 43,492,949 49,789,552

2017 Actuals 2018 Projected 2019 Bud

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2019 PRELIMINARY BUDGET REVIEW

QUESTIONS

Page 1 of 3

MEMORANDUM

NORTHERN WASCO COUNTY PEOPLE’S UTILITY DISTRICT

DATE: November 6, 2018 TO: Directors Gonser, Howe, Karp, Smith & Williams FROM: Paul Titus, Principal Engineer & Strategic Asset Planner SUBJECT: Tygh Valley and Eastside Substation Engineering

Background

Tygh Valley Substation consists of three (3) 500 kVA single phase transformers (1.5 MVA total)

1948 vintage, 69 kV – 12.47 kV constructed on 1960s vintage wood pole and cross armed structures.

A single feeder, that was recently rebuilt from #6 Copper to #4/0 ACSR, serves approximately 236

customers with a peak load ranging from 749 kW to 1,420 kW.

The Eastside Substation will provide capacity and redundancy to the current distribution system and

the proposed location would be situated on land currently owned by North Wasco County School

District #21. The land owned by the school district consists of approximately 100 acres and recently

a portion of the land has been approved to seek proposals for sale and development. The land parcel

on the southeast corner is encumbered by BPA transmission lines and a NWCPUD 115 kV

transmission line, which would be the preferred source of the substation.

Both substations have been identified for rebuild and new construction in the NWCPUD Capital

Improvement Program.

A Request for Proposals (RFP) was issued on October 1, 2018 to select an Engineering Firm to

provide design services for rebuild of the NWCPUD’s Tygh Valley Substation and construction of a

new substation (yet to be named) located within the easy city limits of The Dalles. The RFPs were

due on October 31, 2018 at 5PM.

Page 2 of 3

Submitted Proposals

NWCPUD received the following nine (9) proposals:

Brown & Kysar, Inc.

Burns & McDonnell

D. Hittle & Associates

Electrical Consultants, Inc. (Received 14 minutes after deadline and was not reviewed)

Elcon Associates, Inc.

EPS Engineering & Design

Power Engineers

TriAxis, A Division of David Evans and Associates

Toth & Associates

Costs

Cost for the engineering is not a determination of the award of the Engineering Services as the award

is qualified based. Evaluation Criteria is as follows:

Personnel Expertise and Qualifications (1-30 points or 30%)

Demonstration of proposed project team:

• Professional qualifications to perform work in applicable discipline(s)

• Knowledge of technical criteria and administrative requirements for projects of similar scope.

• Past performance in completing projects of similar size and scope.

Firm Experience (1-40 points or 40%)

Demonstration of Engineering Firm:

• Qualifications to perform work in applicable discipline(s).

• Past performance in completing projects of similar size and scope.

• Past performance in meeting cost benchmarks in project execution.

• Engineering Firm’s experience in distribution substation projects in the Northwest.

Governmental Experience (1-10 points or 10%)

Demonstration of past experience in providing consulting services to governmental agencies.

Availability and Commitment of Resources (1 to 20 points or 20%)

Demonstration of the Engineering Firm’s ability to commit the technical and administrative

resources required to complete projects within established time frames, including responsiveness to

specific project technical and administrative requirements.

Page 3 of 3

The estimated cost for Engineering services is to be between $400,000 and $500,000.

Enterprise Risk Management Considerations

Tygh Valley Substation transformers (70 years old) and wood support structures (50 years old) have

exceeded normal life expectancy. To continue reliable and safe electrical service, Tygh Valley

Substation should be rebuilt.

Eastside Substation is an area that has seen increased growth in the residential area and is currently

served from Seufert Substation on a single distribution feeder. Seufert Substation is near load

capacity during extreme weather events. Additional loading will only exasperate the issue. The

Eastside Substation will be for new loads in the area, reduce loading on other substations (Columbia

Heights and Second Street) and will provide redundancy in times of emergency through distribution

feeder switches. Eastside Substation should be built to provide reliable service and resiliency for

new and existing customers.

Recommendation

After review of the RFPs, TriAxis, A Division of David Evans and Associates, was the highest

scored proposal. Staff recommends NWCPUD Board of Directors approve award of the

Engineering Services for Tygh Valley and Eastside Substations to TriAxis, A Division of David

Evans and Associates, on approval of contract terms found to be satisfactory by General Counsel and

the General Manager.

TASK IDEA/SUGGESTION

Selection of dates for Conference (Do not use the

following dates: September 16-19, 2018 (WEI) &

October 17-18, 2018 (OR Municipal Electric Utilities

Association)

Conference Theme

Conference Location

Conference Reception Location

2019 ANNUAL OPUDA CONFERENCE

The Dalles, Oregon

Lodging Location for Attendees

Entertainment

Conference Speakers

Board and Spouse Activities

Sponsorship Solicitation

Attendee Bag Ideas

Food/Caterer

2345 River Road • The Dalles • Oregon 97058-3551

(541) 296-2226 • Fax (541) 298-3320 • Engineering & Operations Fax (541) 298-5407

November 6, 2018 To: Northern Wasco County Board of Directors From: Kurt Conger, Assistant General Manager, Director of Power Resources Subject: BPA Transmission TC-20 Settlement Recommendation NWCPUD receives transmission service from BPA with a budgeted cost of approximately $3.0 million. BPA initiated the TC-20 settlement process to avoid litigation over BPA’s implementation of a new BPA Open Access Transmission Tariff during the FY 2020-2021 Rate Period. On September 5, 2018, NWCPUD designated NRU as its representative in the TC-20 settlement negotiations. During September and October, BPA and the designated customer representatives engaged in settlement discussions that concluded in a settlement agreement that includes a transmission rate proposal along with non-rate and business practice provisions. The final rate proposal results in an approximate increase to NWCPUD of 2.5%. Other changes to generation input costs affect operating reserves costs, but have deminimis net impact due to the credits that accrue to BPA power customers, including NWCPUD. Consistent with action by the NRU Board last week, NWCPUD staff recommends that the NWCPUD execute the TC-20 settlement proposal and not oppose the Transmission Rates Settlement.

Motion: Move to authorize Northern Wasco People’s Utility District’s General Manager to execute the final TC-20 Settlement Agreement.