1 MINUTES SOUTHSIDE ELECTRIC COOPERATIVE MEETING OF THE BOARD OF DIRECTORS NOVEMBER 21, 2019 @ 1:30 P.M. HEADQUARTERS BOARD ROOM PRESENT: Frank W. Bacon (Chair) Earl C. Currin, Jr. (Vice Chair) Paul S. Bennett (Secretary) Charles J. Friedl (Treasurer) Brenda H. Johnson Clive C. Pettis, Sr. Sarah W. Sanders William T. White Frank F. Rennie (General Counsel) Carlis Dansberger (Minute Taker) STAFF: Bradley V. Furr, VP of Operations George A. Felts, VP of Engineering Jason Loehr, VP of Finance & Corporate Services Jean H. Morris, VP of Human Resources Ronald O. White, VP of Member & Public Relations GUEST: Scott Diggs, Line Technician Supervisor Jacob McCann, Director of HR Monty Montsinger, PE, Pike Engineering Dr. Frank Bacon presided, and Ron White gave the invocation. PREVIOUS MINUTES On motion made and seconded: The Minutes of the October 17, 2019 Board Meeting are approved. MOTION CARRIED ODEC REPORT The ODEC report was given by Earl Currin. PRESIDENT/CEO’S REPORT 1. The SEC Financial and Statistical report for October 2019 was reviewed and is attached to and made a part of the Minutes. 2. The Board was provided information regarding cybersecurity events during the month of October 2019. 3. The Institute of Electrical & Electronics Engineers (IEEE) outage data and safety report for October 2019 were reviewed in detail:
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MINUTES SOUTHSIDE ELECTRIC COOPERATIVE
MEETING OF THE BOARD OF DIRECTORS NOVEMBER 21, 2019 @ 1:30 P.M.
HEADQUARTERS BOARD ROOM PRESENT: Frank W. Bacon (Chair) Earl C. Currin, Jr. (Vice Chair) Paul S. Bennett (Secretary) Charles J. Friedl (Treasurer) Brenda H. Johnson
Clive C. Pettis, Sr. Sarah W. Sanders William T. White Frank F. Rennie (General Counsel) Carlis Dansberger (Minute Taker)
STAFF: Bradley V. Furr, VP of Operations George A. Felts, VP of Engineering
Jason Loehr, VP of Finance & Corporate Services Jean H. Morris, VP of Human Resources Ronald O. White, VP of Member & Public Relations GUEST: Scott Diggs, Line Technician Supervisor
Jacob McCann, Director of HR Monty Montsinger, PE, Pike Engineering
Dr. Frank Bacon presided, and Ron White gave the invocation.
PREVIOUS MINUTES On motion made and seconded:
The Minutes of the October 17, 2019 Board Meeting are approved. MOTION CARRIED
ODEC REPORT The ODEC report was given by Earl Currin.
PRESIDENT/CEO’S REPORT 1. The SEC Financial and Statistical report for October 2019 was reviewed and is
attached to and made a part of the Minutes. 2. The Board was provided information regarding cybersecurity events during the
month of October 2019. 3. The Institute of Electrical & Electronics Engineers (IEEE) outage data and safety
report for October 2019 were reviewed in detail:
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IEEE Outage Data a. System Average Interruption Duration Index (SAIDI) and System Average
Interruption Frequency Index (SAIFI) were below historical values for the month.
b. Customer Average Interruption Duration Index (CAIDI) was below historical value for the month.
c. There were no power supply outages during the month. d. Dominion Power (DE) had one momentary supply outage during the
month at Evergreen substation due to an unidentified cause. e. There was one Major Event day in October on the 31st. f. Weather remained calm throughout October with limited impact on the
system. Safety Report
a. There were no lost-time injuries in October. b. As of October 31st, employees have worked 518 days without a lost time
injury. 4. Operations Update:
a. New service activity was down slightly for overhead construction but up for underground construction for the month.
b. Outage activity (minutes) with major event days removed were in line with historical data:
Central – 116 Eastern – 53 Northern – 43 Western – 88
c. October outage causes were affected primarily by isolated thunderstorms producing damaging winds and lightning:
Trees 52% or 157 outages; YTD 1,665 outages Unknown 10% or 31 outages; YTD 267 outages Fault/Failure 9% or 28 outages; YTD 324 outages Animals 7% or 22 outages; YTD 226 outages Weather 6% or 17 outages; YTD 624 outages Maintenance/Planned 5% or 16 outages; YTD 106 outages Decay/Age 5% or 15 outages; YTD 97 outages Public 4% or 12 outages; YTD 178 outages Power Supply 1% or 2 outages; YTD 9 outages Other <0.1% or 0 outages; YTD 5 outages
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d. Tree related outages from 2014 through October year-to-date with Major Event Days:
e. Outages by District: Central 29% (116 outages affecting 4,847 members) Eastern 42% (53 outages affecting 5,409 members) Northern 39% (43 outages affecting 3,796 members) Western 22% (88 outages affecting 2,503 members)
f. October SAIDI switching savings: Realized 48.4 minutes (51%) Saved by automation (SCADA) switching 45.4 minutes (48%) Saved by manual switching 1.0 minutes (1%)
g. One major event occurred on October 31st: Damage was experienced beginning at 7 p.m. on the 31st All outages were restored by 3:50 p.m. on November 1st At the height of the storm there were 5,526 meters out and a total
89 system outages Most of the outages were restored by November 1st at 9 a.m.
h. SAIDI per District: Central 5.61 minutes in October; YTD 81.0 minutes Eastern 0.58 minutes in October; YTD 47.4 minutes Northern 2.16 minutes in October; YTD 23.1 minutes Western 1.67 minutes in October; YTD 93.8 minutes
i. SAIFI per District: Central 0.045 events in October; YTD 0.68 events Eastern 0.005 events in October; YTD 0.39 events Northern 0.039 events in October; YTD 0.32 events Western 0.024 events in October; YTD 0.69 events
j. CAIDI per District: Central 126 minutes in October Eastern 120 minutes in October Northern 57 minutes in October Western 69 minutes in October
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k. Fleet service orders completed YTD: Month Service Orders (SO) Average Cost/SO
January 81 $543 February 77 $527 March 83 $423 April 74 $492 May 79 $280 June 60 $723 July 64 $604 August 106 $329 September 62 $263 October 82 $411
l. Average vehicle downtime in days: January = 2.32 February = 2.12 March = 4.02 April = 2.82 May = 3.02 June = 4.29 July = 2.81 August = 3.21 September = 3.20 October = 2.72
5. Scott Diggs gave a detailed report on his trip to Bolivia as part of the group of linemen who participated through NRECA International.
6. Jeff Edwards, George Felts and Jason Loehr met with Evan Fineman and two others from the Governor’s office along with Andrew Vehorn and Brian Mosier from the VMDAEC on November 15th to present information regarding the Cooperative’s position on Broadband.
7. SEC’s rate case is moving through the process with an effective date of January 1, 2020.
8. All SEC employees and supervisors recently completed anti-harassment training.
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NEW BUSINESS 1. The Long Range Plan (LRP) for 2020 – 2039 and corresponding resolution were
reviewed: a. A tool that is used in the Cooperative’s mission to provide the
membership with safe, reliable and affordable electric service b. Identifies the most economical combination of system improvement
projects that will provide SEC with a transmission and distribution system capable of serving the projected 2034 peak system loading levels and to meeting the reliability and financial goals of the Cooperative
c. Existing 2018 peak was 345,487 kW d. Projected to have a medium growth scenario; 4,000 kW per year or
1.19% average growth rate e. Substation improvement projects identified over the life of the plan:
Reams Powhatan Amelia Gill Center Star Fine Creek
f. Actions required to maintain minimum standards for adequate voltage, thermal loading, service reliability, single contingency capability and equipment capacity.
g. System improvements: Improve voltage levels Maintain adequate thermal capacity Balance phase loads Line-loss reduction Improve reliability Load transfer capability for single contingency Remove distribution line voltage regulators
h. Step 1 Improvements: Radio system - $1.5 million Large distribution line improvements:
- Drakes Branch – 12 to 25 kV conversion $3.7 million - Hooper – 12 to 25 kV conversion $4.9 million - Main line 336 ACSR upgrades:
o Reams (3 miles) $495,000 o Moran (2.6 miles) dual circuit & (4.8 miles) single
circuit $1.4 million o Center Star (2.3 miles) $379,500
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o Wellville (0.9 miles) dual circuit and (3.7 miles) single circuit $813,000
- GIS field inventory $2.1 million Large substation improvements:
- Substation high side modifications: o Drakes Branch, Gary, Moran, Hooper, Nutbush, Fort
i. Step 2 Improvements: Main line 336 ACSR upgrades:
- Danieltown (1.2 miles) dual circuit and (1.5 miles) single circuit $517,500
Main line 1000 MCM underground upgrades: - Powhatan (1.7 miles) $850,000
10 to 30 projects: - Center Star and Brunswick $640,000
Large substation improvements: - Substation high side modifications
o Gladys & Victoria $120,000 - Reams additional 20MVA transformer $750,000 - Danieltown upgrade voltage regulators $105,000 - Center Star upgrade transformer to 15 MVA $650,000 - Brunswick upgrade voltage regulators $90,000
j. Step 3 Improvements: Large distribution line improvements:
- Main line 336 ACSR upgrades: o Gary (4.2 miles) $693,000 o Nutbush (2.2 miles) $363,000 o Danieltown (2 miles) $450,500 o Lake Chesdin (3.5 miles) $577,500
- Main line 1000 MCM underground upgrades o Lake Chesdin (8.3 miles) $4.2 million o Alternate is a new substation
- Copper replacement $13.7 million Large substation improvements:
0.00 0.00 0.00 0.00 0.0017. Interest Charged to Construction - Credit21,830.07 40,068.37 24,750.00 3,692.02 2,250.0018. Interest Expense - Other74,592.67 1,062,127.95 98,750.00 146,421.49 36,250.0019. Other Deductions
105,458,770.25 113,160,763.60 113,065,157.35 10,431,674.96 10,261,700.9520. Total Cost of Electric Service (12 thru 19)
4,105,584.77 727,435.45 -785,032.17 514,126.18 -6,183.7121. Patronage Capital & Operating Margins (1 minus 20)117,007.57 123,501.31 115,225.00 10,566.17 10,475.0022. Non Operating Margins - Interest
0.00 0.00 0.00 0.00 0.0023. Allowance for Funds Used During Construction0.00 0.00 0.00 0.00 0.0024. Income (Loss) from Equity Investments
-70,201.44 -6,011.94 -10,083.26 1,463.70 -916.6625. Non Operating Margins - Other660,000.00 649,240.63 641,666.63 58,333.33 58,333.3326. Generation and Transmission Capital Credits669,664.82 597,958.27 600,000.00 0.00 0.0027. Other Capital Credits and Patronage Dividends
0.00 0.00 0.00 0.00 0.0028. Extraordinary Items5,482,055.72 2,092,123.72 561,776.20 584,489.38 61,707.9629. Patronage Capital or Margins (21 thru 28)
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General LedgerFinancial And Operating Report Electric Distribution
Page: 110:06:58 am12/12/2019
Revision: 100216SOUTHSIDE ELECTRIC COOPERATIVE
This YearLast Year Variance
BALANCE SHEET FOR NOV 2019
ASSETS AND OTHER DEBITS 1. Total Utility Plant in Service 370,166,377.68 5,712,880.65364,453,497.03 2. Construction Work in Progress 5,669,854.80 -1,390,935.247,060,790.04 3. Total Utility Plant (1 + 2) 375,836,232.48 4,321,945.41371,514,287.07 4. Accum. Provision for Depreciation and Amort. 126,578,302.09 8,478,565.89118,099,736.20 5. Net Utility Plant (3 - 4) 249,257,930.39 -4,156,620.48253,414,550.87 6. Non-Utility Property (Net) 20,241.26 -3,801.3424,042.60 7. Invest. in Subsidiary Companies 0.00 0.000.00 8. Invest. in Assoc. Org. - Patronage Capital 49,658,787.93 1,341,040.5348,317,747.40 9. Invest. in Assoc. Org. - Other - General Funds 2,577,810.78 -980.072,578,790.85 10. Invest. in Assoc. Org. - Other - Nongeneral Funds 0.00 0.000.00 11. Invest. in Economic Development Projects 0.00 0.000.00 12. Other Investments 705,107.85 7,920.26697,187.59 13. Special Funds 0.00 0.000.00 14. Total Other Property & Investments (6 thru 13) 52,961,947.82 1,344,179.3851,617,768.44 15. Cash - General Funds 10,214,631.23 2,142,284.018,072,347.22 16. Cash - Construction Funds - Trustee 0.00 0.000.00 17. Special Deposits 0.00 0.000.00 18. Temporary Investments 0.00 0.000.00 19. Notes Receivable (Net) 26,654.97 -7,509.3034,164.27 20. Accounts Receivable - Sales of Energy (Net) 6,785,484.56 395,160.126,390,324.44 21. Accounts Receivable - Other (Net) 6,510,786.88 2,578,895.763,931,891.12 22. Renewable Energy Credits 0.00 0.000.00 23. Material and Supplies - Electric & Other 1,831,688.71 -370,900.342,202,589.05 24. Prepayments 448,980.97 27,392.93421,588.04 25. Other Current and Accrued Assets 7,066,248.50 -344,999.817,411,248.31 26. Total Current and Accrued Assets (15 thru 25) 32,884,475.82 4,420,323.3728,464,152.45 27. Regulatory Assets 0.00 0.000.00 28. Other Deferred Debits 2,727,636.09 -856,317.833,583,953.92 29. Total Assets and Other Debits (5 + 14 + 26 thru 28) 337,831,990.12 751,564.44337,080,425.68
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General LedgerFinancial And Operating Report Electric Distribution
Page: 210:06:58 am12/12/2019
Revision: 100216SOUTHSIDE ELECTRIC COOPERATIVE
This YearLast Year Variance
BALANCE SHEET FOR NOV 2019
LIABILITIES AND OTHER CREDITS 30. Memberships 234,695.00 1,360.00233,335.00 31. Patronage Capital 102,821,278.60 2,946,042.7999,875,235.81 32. Operating Margins - Prior Years 0.00 0.000.00 33. Operating Margins - Current Year 2,092,123.72 -3,389,932.005,482,055.72 34. Non-Operating Margins 0.00 0.000.00 35. Other Margins and Equities 2,071,064.98 630,286.211,440,778.77 36. Total Margins & Equities (30 thru 35) 107,219,162.30 187,757.00107,031,405.30 37. Long-Term Debt - RUS (Net) 0.00 0.000.00 38. Long-Term Debt - FFB - RUS Guaranteed 142,686,215.37 16,360,608.40126,325,606.97 39. Long-Term Debt - Other - RUS Guaranteed 0.00 0.000.00 40. Long-Term Debt - Other (Net) 62,614,114.79 -6,211,271.0768,825,385.86 41. Long-Term Debt - RUS Econ. Devel. (Net) 0.00 0.000.00 42. Payments - Unapplied 0.00 0.000.00 43. Total Long-Term Debt (37 thru 41 - 42) 205,300,330.16 10,149,337.33195,150,992.83 44. Obligations Under Capital Leases - Noncurrent 0.00 0.000.00 45. Accumulated Operating Provisions 28,356.79 -5,324.6533,681.44 46. Total Other Noncurrent Liabilities (44 + 45) 28,356.79 -5,324.6533,681.44 47. Notes Payable 0.00 -9,500,000.009,500,000.00 48. Accounts Payable 8,048,034.98 -688,647.988,736,682.96 49. Consumers Deposits 2,287,211.77 93,096.282,194,115.49 50. Current Maturities Long-Term Debt 9,082,224.00 831,044.008,251,180.00 51. Current Maturities Long-Term Debt - Econ. Devel. 0.00 0.000.00 52. Current Maturities Capital Leases 0.00 0.000.00 53. Other Current and Accrued Liabilities 5,521,936.67 -264,260.405,786,197.07 54. Total Current & Accrued Liabilities (47 thru 53) 24,939,407.42 -9,528,768.1034,468,175.52 55. Regulatory Liabilities 0.00 0.000.00 56. Other Deferred Credits 344,733.45 -51,437.14396,170.59 57. Total Liab. & Other Credits (36+43+46+54 thru 56) 337,831,990.12 751,564.44337,080,425.68
1.320.83Current Assets To Current Liabilities to 1 to 131.75 31.74 % %Margins and Equities To Total Assets
54.6252.53 %Long-Term Debt To Total Utility Plant %
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Statements of Cash Flows
Southside Electric Cooperative
Period ended Period ended
November 30, 2019 November 30, 2018
Cash flows from operating activities
Electric revenue received 118,634,728$ 113,087,513$
Power supply paid (69,382,343) (64,235,326)
Operating expenses paid (29,329,272) (24,723,509)
Interest received 123,501 117,008
Interest paid (5,603,543) (5,268,972)
Cash flows provided by operating activities 14,902,733 18,976,714
Cash flows from investing activities
Investment in electric plant,net (6,604,742) (9,013,624)
Installment loans issued (1,452,564) (1,189,349)
Proceeds from retirement of CTC's 19,642 18,383
Cash flows used in investing activities (8,037,664) (10,184,590)
Cash flows from financing activities
Payments on lines of credit ‐ (12,000,000)
Proceeds from long term debt ‐ 12,900,000
Principal payments on long term debt (6,937,886) (6,953,929)
Capital credits paid to members, net (1,039,767) (1,011,846)
Proceeds from capital credits 331,032 1,983,248
Deposits collected from customers 84,643 1,424
Net change in memberships 1,460 845
Cash flows (used) provided by financing activities (7,560,518) (5,080,258)
Net change in cash (695,449) 3,711,866
Cash at December 31, 2018 and 2017 10,910,081 4,360,481
Cash at November 30, 2019 and 2018 10,214,632$ 8,072,347$
No. Receiving Service
a.
No. Minimum Bills d.
Avg. No. Receiving Service
e.
kWh Sold Cumulative
f.
Amount Cumulative
g.1. Residential Sales (excl seas.) 54,592 19 54,409 692,571,328 95,381,8122. Residential Sales Seasonal3. Irrigation Sales4. Comm. & Ind 1000 KVA or Less 1,980 9 1,967 53,003,874 6,559,3215. Comm. & Ind Over 1000 KVA 17 0 17 70,229,998 5,622,1796. Public St. & Highway Lighting7. Other Sales to Public Authority 419 1 405 50,027,581 5,281,3128. Sales for Resale - REA Borr.9. Sales for Resale - Other
10.
(1 thru 9) 57,008 29 56,798 865,832,781 112,844,62411. Other Electric Revenue xxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxx 1,043,57512. Total (10 + 11) xxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxx 113,888,199